) SS: OF ENVIRONMENTAL MANAGEMENT

COUNTY OF MARION )

COMMISSIONER OF THE DEPARTMENT )

OF ENVIRONMENTAL MANAGEMENT, )

)

Complainant, )

)

v. ) CAUSE NO. B-2353

)

MIDWEST DIVISION, )

NATIONAL STEEL CORPORATION )

)

Respondent. )

The Complainant and the Respondent desire to settle and compromise this action without hearing or adjudication of any issue of fact or law, and consent to the entry of the following Findings of Fact and Order. Pursuant to IC 13-30-3-3(c), entry into this Agreed Order does not constitute admission of the alleged violations herein.

1. Complainant is the Commissioner (hereinafter referred to as "Complainant") of the Indiana Department of Environmental Management, a department of the State of Indiana created by IC 13-13-1-1.
2. The Midwest Division, National Steel Corporation (hereinafter referred to as "Respondent"), owns and operates a steel product finishing mill located on U.S. Route 12 in Portage, Indiana. Respondent is authorized by NPDES Permit No. IN 0000337 (the "Permit") to discharge to receiving waters named Burns Ditch (Waterway) in accordance with effluent limitations, monitoring requirements, and other conditions set forth in Parts I, II, and III of the Permit.
3. The Indiana Department of Environmental Management (IDEM) has jurisdiction over the parties and subject matter of this action.

6. To date, Respondent has implemented the Plan in accordance with the terms of the Agreed Order.

7. By letter dated April 11, 2000, IDEM issued a Warning of Noncompliance ("WONC") to Respondent pertaining to the following:

 

 

a. the presence of oil sheens and oily matter on waters of the state attributable to the discharge from Outfalls 004 and 104, in violation of IC 13-30-2-1, IC 13-18-4-5, 327 IAC 2-1.5-8(b)(1), 327 IAC 5-2-8(1), and Part I.A.2.b, Part I.A.2.c, Part I.A.2.d., Part I.A.3.b., Part I.A.3.c., and Part I.A.3.d. of the Permit; and

b. the discharge of oil and the presence of oil sheens on waters of the state attributable to the discharge from Outfall 003, in violation of IC 13-30-2-1, IC 13-18-4-5, 327 IAC 2-1.5-8(b)(1), 327 IAC 5-2-8(1), and Part I.A.1.c, and Part I.A.1.d of the Permit.

8. As requested by IDEM, the Respondent replied to the WONC by letters dated April 13, 2000 and April 19, 2000.
9. Representatives of IDEM and the Respondent met at Respondent's facility on May 5, 2000 to discuss the WONC, the Respondent's responses to the WONC, and the issues pertaining thereto.
10. IDEM and the Respondent agree that it is appropriate to amend the Agreed Order to require Respondent to take additional measures to ensure that the discharges from Outfalls 003,004, and 104 comply with the narrative effluent limitations set forth in the NPDES permit applicable to each outfall, specifically including: Parts I.A.1.c and I.A.1.d, which are applicable to Outfall 003; Parts I.A.2.b, I.A.2.c, I.A.2.d, which are applicable to Outfall 004; and Parts I.A.3.b, I.A.3.c, and I.A.3.d, which are applicable to Outall 104.
11. In the period from September 1998 to May 1999, the Respondent failed to meet NPDES Permit numeric effluent limitations as follows:

 

 

The daily maximum limitation for Total Cyanide at Outfall 104 was not met on one (1) occasion during October of 1998.

The monthly average limitation for Total Cyanide at Outfall 104 was not met on one (1) occasion during September of 1998.

The daily maximum limitation for Total Iron at Outfall 104 was not met on one (1) occasion during October of 1998 and two (2) occasions during March of 1999.

The monthly average limitation for Total Iron at Outfall 104 was not met on one (1) occasion during October of 1998 and one (1) occasion during March of 1999.

The minimum limitation for pH at Outfall 004 was not met on one (1) occasion during January 1999.

A temperature increase in Burns Ditch of greater than two degrees Fahrenheit (as determined from upstream temperature and downstream temperature at the edge of the mixing zone) occurred on nine (9) occasions during September of 1998, four (4) occasions during October of 1998, and one (1) occasion during November of 1998.

12. In the period from June 1999 to September 2000, the Respondent failed to meet NPDES Permit effluent limitations as follows:

 

 

The daily maximum limitation for Total Iron at Outfall 104 was not met on one (1) occasion during September of 1999, one (1) occasion during January of 2000, and one (1) occasion during May of 2000.

The monthly average limitation for Total Iron at Outfall 104 was not met on one (1) occasion during July of 1999, one (1) occasion during September of 1999, one (1) occasion during November of 1999, one (1) occasion during January of 2000, one (1) occasion during February of 2000, one (1) occasion during March of 2000, one (1) occasion during May of 2000, one (1) occasion during August of 2000, and one (1) occasion during September of 2000.

The daily maximum limitation for Total Chromium at Outfall 104 was not met on one (1) occasion during January 2000 and on one (1) occasion during May of 2000.

A temperature increase in Burns Ditch (Waterway) of greater than two degrees Fahrenheit (as determined from upstream temperature and downstream temperature at the edge of the mixing zone) occurred on two (2) occasions during December of 1999.

A discoloration at Outfall 004 was reported on one (1) occasion in May of 2000 and on one (1) occasion in June of 2000.

13. On November 28, 2000, IDEM issued to the Respondent a letter requiring the payment of the balance of the civil penalty provided for by the Agreed Order plus interest, in the amount of Two Hundred Sixteen Thousand Five Hundred Sixty-Eight Dollars ($216,568).
14. On January 16, 2001, IDEM issued to the Respondent a letter requiring the payment of stipulated penalties in the amount of Nine Thousand Dollars ($9,000) for the violations referenced in paragraph 12 above.
15. On January 16, 2001, IDEM issued to the Respondent a Notice of Violation for the violations referenced in paragraphs 7 and 11 above.
16. In recognition of the settlement reached, Respondent waives any right to administrative and judicial review of this Amendment to Agreed Order.

1. This Amendment to Agreed Order shall be effective ("Effective Date") when it is signed by Respondent, approved by the Complainant or her delegate, and received by the Respondent. This Amendment to Agreed Order shall have no force or effect until the Effective Date.
2. The following new paragraph, numbered II.2.A, is hereby inserted between Paragraphs II.2 and II.3 of the Agreed Order:

 

 

In addition to the work provided for in Paragraph II.2 of the Agreed Order, Respondent shall conduct the following work in accordance with the schedule set forth below to further ensure that the discharges from Outfalls 004 and 104 comply with the narrative effluent limitations set forth in the Permit, specifically including Parts I.A.2.b through I.A.2.d, which are applicable to Outfall 004; and Parts I.A.3.b through I.A.3.d, which are applicable to Outfall 104.

i. Respondent shall investigate options to replace water soluble oil products with non-water soluble (oil) products to enhance their (oil) recovery in Respondent's Terminal Wastewater Treatment Plant and shall submit to the IDEM, on or before July 1, 2001, a report of its investigation, including a schedule for replacement activities, if any.

ii. Respondent shall conduct a complete and thorough investigation of possible sources of oil discharging to Oufall 004. Such investigation shall include each applicable: (a) process and utility operation; (b) oil storage areas; (c) basements and lubricating systems; (d) building sumps; (e) process wastewater treatment plant; (f) fuel and lubricating oil unloading stations; (g) maintenance activities; and (h) other potential sources of oil. Upon completion of the investigation, Respondent shall develop a priority list and schedule for remediating those actual and potential sources of oil determined to be significant or potentially significant sources, and which are technically and economically feasible to remediate. On or before July 1, 2001, Respondent shall submit to IDEM a report of its investigation, a summary of the remedial actions taken, and a schedule for further remedial actions, if any.

iii. Respondent shall develop and submit to IDEM, on or before September 1, 2000, a new written plan and schedule for routine maintenance of each of the unit processes (e.g. equalization basins, sedimentation basins, clarifiers) at the Terminal Wastewater Treatment Plant. The Respondent shall begin implementation of the maintenance plan no later than January 1, 2001, and shall, thereafter, conduct maintenance activities in accordance with the maintenance plan.

iv. Respondent shall develop and implement a plan that ensures the routine removal and proper disposal of any oil which accumulates in the Terminal Wastewater Treatment Plant equalization basins. Respondent shall submit to the IDEM, on or before September 1, 2000, a copy of the plan and a report summarizing the implementation of the plan.

v. Respondent shall evaluate the use of oil-demulsifiers at the API separator to enhance oil recovery and shall submit to IDEM, for approval, within thirty (30) days of the Effective Date, an application to conduct a field trial of its preliminary choice of oil-demulsifier. Within sixty (60) days of receipt of written approval from IDEM for the field trial, Respondent shall submit to IDEM a letter describing the manner that the field trial was conducted, the results of the field trial, and the manner in which the results of the field trial were measured and evaluated and indicating either:

(a) that the preliminary choice sufficiently enhances oil recovery and requesting approval to use it on an ongoing basis. Respondent shall proceed promptly to use the oil-demulsifier on an ongoing basis after receipt of written approval by IDEM, unless Respondent obtains approval to use an alternate oil demulsifier; or

(b) that the preliminary choice does not sufficiently enhance oil recovery and requesting approval from IDEM to conduct a field trial of a different oil-demulsifier. Respondent shall continue, for a period not to exceed twelve (12) months from the effective date, to request approval from IDEM to conduct field tests of different oil-demulsifiers and shall continue to submit letters to the IDEM which provide the information specified above. If, after twelve (12) months from the effective date, an oil-demulsifier which sufficiently enhances oil recovery has not been found, Respondent shall promptly notify IDEM in writing.

vi. Respondent shall conduct Oil and Grease Monitoring at the API Separators and the Flow Equalization Basin as follows:

a.) Respondent shall sample and analyze the influent and effluent from the API Separators, and the effluent from the Flow Equalization Basin three times daily, at equally spaced intervals for Oil and Grease, seven days per week, for two weeks, beginning on November 11, 2000 and lasting until November 26, 2000. This testing will be conducted to obtain background oil and grease concentration information prior to the initiation of Oil Demulsifier Trial testing at the API Separators.

b) After the "Two Week Trial Period" provided for by item a above, Respondent shall sample and analyze for Oil and Grease once per day, seven days per week, at the Effluent of the API Separators and the Effluent from the Flow Equalization Basin. This testing shall be continued until the closure of the Amendment to Agreed Order, except during the "Oil Demulsifier Trial Periods" as described below in items c and d. Complainant may reduce the sampling frequency and/or eliminate this sampling and testing prior to the closure of this Amendment to Agreed Order by providing written notification to Respondent which provides for a reduction or elimination of sampling.

c) The "Oil Demulsifier Trial Period" - Beginning on the first day of the "Oil Demulsifier Trial Period", and lasting for fourteen (14) consecutive days, Respondent shall sample and analyze the influent and effluent from the API Separators, and the effluent from the Flow Equalization Basin three times daily, at equally spaced intervals, for Oil and Grease, seven days per week. After this fourteen (14) day trial period, the sampling and testing shall revert, at a minimum, to the frequency and locations described in item b above.

d) "Additional Oil Demulsifier Trial Periods" - If Respondent tests a new or different Oil Demulsifier, in an attempt to enhance oil and grease recovery, Respondent shall, beginning on the first day of the "Additional Oil Demulsifier Trial Period", and lasting for fourteen (14) consecutive days, sample and analyze the influent and effluent from the API Separators, and the effluent from the Flow Equalization Basin three times daily, at equally spaced intervals, for Oil and Grease, seven days per week. After this fourteen (14) day additional trial period, the sampling and testing may be reduced to the frequency and locations described in item b above.

e) Sampling and Testing Procedures - All samples shall be grab samples, and all sample containers, preservation techniques, and laboratory testing methods shall conform with 40 CFR, Part 136.

f) Records and Reports - Respondent shall maintain the following records: a)The exact place, date, and time of sampling; b) the method of sampling; c) the person performing the sampling; d) the analytical testing methods used; e) the dates of anaysis; and f) the results of all analyses. The results of all analysis shall also be submitted monthly to IDEM, as supplemental attachments to the DMR's.

g) Summary Report - Respondent shall within fifteen (15) days, of the completion of any "Oil Demulsifier Trial Period", submit a summary report to the IDEM, which summarizes the findings of the Oil and Grease testing and the effectiveness of the "Oil Demulsifier Trial". This report shall be addressed to, Mr. Michael Kuss, Environmental Engineer, IDEM, with a copy to Ms. Chris Sorensen, Enforcement Case Manager, IDEM.

3. The following new paragraph, numbered II.2.B, is hereby inserted between Paragraphs II.2 and II.3 of the Agreed Order and after Paragraph II.2.A., above:

 

 

Respondent shall conduct the following work in accordance with the schedule set forth below to further ensure that the discharge from Outfall 003 complies with the narrative effluent limitations set forth in Parts I.A.1.b through I.A.1.d of the Permit:

Respondent shall conduct a complete and thorough investigation of possible sources of oil discharging to Outfall 003. Such investigation shall include each applicable: (a) process and utility operation; (b) oil storage areas; (c) basements and lubricating systems; (d) building sumps; (e) process wastewater treatment plant; (f) fuel and lubricating oil unloading stations; (g) maintenance activities; and (h) other potential sources of oil. Upon completion of the investigation, Respondent shall develop a schedule for eliminating unpermitted sources of oil, if any, and shall then proceed to eliminate them in accordance with said schedule upon approval by IDEM. On or before July 1, 2001, Respondent shall submit to IDEM a report of its investigation, a summary of the remedial actions taken, and a schedule for further remedial actions, if any.

4. The following new paragraph, numbered II.2.C, is hereby inserted between Paragraphs II.2 and II.3 of the Agreed Order and after Paragraph II.2.B., above:

 

 

Unless expressly approved in writing by IDEM or other appropriate regulatory agency, efforts by the Respondent to achieve compliance with any of the narrative limitations included in its NPDES permit, including those narrative limitations set forth in Parts I.A.1.b through I.A.1.d, which are applicable to Outfall 003, Parts I.A.2.b through I.A.2.d, which are applicable to Outfall 004, and Parts I.A.3.b through I.A.3.d, which are applicable to Outfall 104, shall not include use of a dispersant.

5. The following new paragraph, numbered II.2.D, is hereby inserted between Paragraph II.2 and II.3 of the Agreed Order and after Paragraph II.2.C., above.

1. Commencing on August 1, 2001, Respondent shall, within six (6) months of the date of commencement (the "Narrative Performance Period") demonstrate three (3) consecutive months of continuous compliance at Outfalls 003, 004, and 104 with the "Narrative" limitations set forth in the permit, specifically including Parts I.A.1.b through I.A.1.d, which are applicable to Outfall 003, Parts I.A.2.b through I.A.2.d, which are applicable to Outfall 004, and Parts I.A.3.b through I.A.3.d. which are applicable to Outfall 104 (the "Narrative Compliance Demonstration"). The determination as to whether the Respondent has achieved compliance with the applicable "Narrative" limitations set forth in the permit shall be based on the effect of the discharge from Outfalls 003, 004, and 104 on the receiving water, as determined by visual inspections conducted by the Respondent in accordance with Paragraph 5.b. below, as well as inspections or investigations by IDEM representatives conducted during the Narrative Performance Period.
2. During the Narrative Performance Period, Respondent shall conduct visual inspections of Outfalls 003, 004, and 104, twice per day, seven days per week, at the locations specified below, and shall document its visual inspections by recording the date and time of visual inspection, the specific location(s) of visual inspection, the name of the individual conducting the inspection, and the appearance of the effluent and the receiving waters, specifically noting the following: any visible film or sheen, foam, floatable or settleable solids, unsightly or deleterious condition, color, or odor. With respect to Outfalls 003 and 004, visual inspections shall be conducted at the respective locations where the effluent from each outfall enters Burns Ditch (Waterway). With respect to Outfall 104, visual inspections shall be conducted at the Terminal Wastewater Treatment Plant secondary clarifier weirs and at the Terminal Wastewater Treatment Plant flow measurement flume. Respondent shall retain copies of the documentation of its visual inspections at the permitted facility and shall allow IDEM representatives to inspect and copy these records upon request. The Respondent shall submit a report summarizing the results of its visual inspections, including an evaluation of compliance with the narrative limitations, to IDEM within forty-five (45) days ofthe earlier of the Respondent becoming aware that the Narrative Compliance Demonstration cannot be achieved or the completion of the Narrative Performance Period.
3. In the event that the Respondent fails to achieve the Narrative Compliance Demonstration, Respondent shall, within forty-five (45) days of becoming aware that the Narrative Compliance Demonstration cannot be achieved, develop and submit to IDEM a plan which identifies the actions that Respondent will take to ensure that the effluent at Outfalls 003, 004, and/or 104, as applicable, complies with the narrative limitations set forth in Parts I.A.1.b through I.A.1.d, Parts I.A.2.b through I.A.2.d, and Parts I.A.3.b through I.A.3.d of the Permit, respectively. To the extent that such a plan is necessary for Outfall 104, the plan shall identify actions that the Respondent will take to improve the performance of the wastewater treatment plants, specifically including the Oily Wastewater Pretreatment facilities and the Terminal Wastewater Treatment Plant. The plan(s) shall include implementation and completion schedule(s), including specific milestone dates. The plan(s) shall be subject to the approval of IDEM. Said approval shall not be unreasonably withheld. The approved plan shall be incorporated into this Amendment and shall be deemed an enforceable part thereof.

7. The second sentence of Paragraph II.4 of the Agreed Order is hereby modified to provide as follows:

 

 

In the event Respondent fails to make the Compliance Demonstration, Respondent shall, within sixty (60) days of becoming aware that the Compliance Demonstration cannot be achieved, develop and submit to IDEM a plan which identifies the actions that Respondent will take to improve the performance of the treatment plant so that the treated effluent complies with the effluent limitations and discharge requirements contained in its NPDES Permit identified in the Notice of Violation, Cause No. B-2353, other than the narrative limitations applicable to Outfalls 003, 004, and 104 set forth in Parts I.A.1.b through I.A.1.d, Parts I.A.2.b through I.A.2.d and Parts I.A.3.b through I.A.3 d of the Permit, respectively.

8. The following new paragraph, numbered II.10.A, is hereby inserted between Paragraphs II.10 and II.11 of the Agreed Order:

 

 

The Respondent is hereby assessed a Civil Penalty of Sixty-Six Thousand Five Hundred Dollars ($66,500) for the violations noted in Paragraph I.7 and Paragraph I.11 of the Amendment to Agreed Order. The Respondent shall pay the civil penalty pursuant to the following schedule:

Payment Due Date Payment Amount

October 1, 2001 $10,000

November 1, 2001 $10,000

December 1, 2001 $10,000

January1, 2002 $10,000

February 1, 2002 $10,000

March 1, 2002 $10,000

April 1, 2002 $ 6,500

9. The following new paragraph, numbered II.11.A, is hereby inserted between Paragraphs II.11 and II.12 of the Agreed Order:

 

 

In the event the following terms and conditions of the Amendment to Agreed Order are violated after the Effective Date of the Amendment to Agreed Order, the Complainant may assess and the Respondent shall pay a stipulated penalty in the following amounts:
 
 
 
 

VIOLATION PENALTY

Paragraph II.2.A.i $750 per week for late submittal of report and $750 per week for failure to comply with schedule for replacement activities, if any

Paragraph II.2.A.ii $750 per week for late submittal of the report of the investigation, summary of remedial actions taken, and schedule for further remedial actions, if any
 
 

Paragraph II.2.A.iii $750 per week for late submittal of written plan and schedule

Paragraph II.2.A.iv $750 per week for late submittal of the plan or the report summarizing implementation of the plan as required by Paragraph II.2.A.iv

Paragraph II.2.A.v $750 per week for failure to comply with any deadlines established by Paragraph II.2.A.v

Paragraph II.2.A.vi $750 per failure to conduct sampling and analysis at the frequency or in the manner required by Paragraph II.2.A.vi

Paragraph II.2.B $750 per week for late submittal of the report of the investigation, summary of remedial actions taken, and schedule for further remedial actions, if any

Paragraph II.2.C $25,000 per day per outfall per unauthorized use of dispersant

Paragraph II.2.D $3,750 per violation of any narrative standard set forth in Parts I.A.1.b through I.A.1.d, Parts I.A.2.b through I.A.2.d, and Parts I.A.3.b through I.A.3.d of Respondent's Permit during the "Narrative Performance Period" provided for by Paragraph II.2.D

Paragraph II.2.D $750 per week for failure to comply with any milestone date set forth in the approved plan submitted pursuant to Paragraph II.2.D
 
 

10. Paragraph II.20 of the Agreed Order is hereby modified to provide as follows:

 

 

A. This Agreed Order and Amendment to Agreed Order shall remain in effect until:

i. Respondent has made a Compliance Demonstration as required pursuant to paragraph II.4 and a Narrative Compliance Demonstration as required pursuant to paragraph II.2.D, including demonstrating compliance with any further remedial plans as contemplated by those paragraphs;

ii. Respondent has submitted to IDEM a written request that IDEM issue a "close out" letter to confirm that Respondent has met the requirements of paragraph i. above and that the Agreed Order and Amendment to Agreed Order are no longer in effect; and

iii. IDEM issues such a "close out" letter, or IDEM does not respond in writing to Respondent's request within thirty (30) days.

B. In the event that IDEM timely rejects or denies Respondent's request for issuance of a "close out" letter, both parties may exercise any rights they may have at law or in equity.

11. All other terms and conditions of the Agreed Order shall remain in full force and effect and shall be applicable to this Amendment to Agreed Order.
12. Signature by Respondent's counsel below indicates only that this Amendment to Agreed Order was signed by Respondent after consultation with legal counsel.

TECHNICAL RECOMMENDATION: RESPONDENT:

Department of Environmental Management National Steel Corporation

By: _________________________ By: _____________________________

Department of Environmental Management

By: By:

Date: Date:
 
 

APPROVED AND ADOPTED BY THE INDIANA DEPARTMENT OF ENVIRONMENTAL MANAGEMENT THIS DAY OF , 2001.
 
 

FOR THE COMMISSIONER:
 
 

Signed March 15, 2001

Felicia A. Robinson

Assistant Commissioner of Enforcement