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STATE OF INDIANA    )            BEFORE THE INDIANA DEPARTMENT
                )        SS:    OF ENVIRONMENTAL MANAGEMENT
COUNTY OF MARION    )

COMMISSIONER OF THE DEPARTMENT    )
OF ENVIRONMENTAL MANAGEMENT,    )
                            )
            Complainant,            )
                            ) CAUSE NOs. SW-395(1999-8715-S),
                            ) SW-402(1999-8716-S), SW-403(1999-8718-S)
            v.                )
    )
ROBINSON ENGINEERING     )
& OIL COMPANY, INC.    )
                            )
            Respondent.            )

AGREED ORDER

    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.

I. FINDINGS OF FACT

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.    Respondent is Robinson Engineering & Oil Company, Inc. (hereinafter referred to as "Respondent"), who operates three oil and gas leases. The first lease, Tecumseh Coal Unit Lease, is located at the Section 16-3N-6W, 1/4 mile west of 450 E. and 350 N. in Daviess County, Indiana (hereinafter referred to as "Site 1"). The second lease, Sparks Lease, is located at county road 650 N. and 450 W. on the west side of the intersection in Spencer County, Indiana (hereinafter referred to as "Site 2"). The third lease, Owensville North unit Lease, is located at SR 65, 3 miles north of Owensville in Gibson County, Indiana (hereinafter referred to as "Site 3").

3.    The Indiana Department of Environmental Management ("IDEM") has jurisdiction over the parties and subject matter of this action.

     Pursuant to IC 13-30-3-3, IDEM issued a Notice of Violation via Certified Mail on July 21,1999, to:

        Robinson Engineering and Oil Company Inc.
        C.A. Robinson
        1410 N. Cullen Avenue
        P.O. Box 5269
        Evansville, Indiana 47716

     On January 13, 1999, IDEM representatives conducted a spill investigation at Site 1.

     On January 22, 1999, IDEM representatives conducted a spill investigation at Site 2.

     On April 10, 1999, IDEM representatives conducted a spill investigation at Site 3.

     During the above noted investigations the Respondent was found in violation of:

         Pursuant to IC 13-30-2-1(1), no person may discharge, emit, cause, allow, or threaten to discharge, emit, cause, or allow any contaminant or waste, including any noxious odor, either alone or in combination with contaminants from other sources, into the environment or into any publicly owned treatment works in any form which causes or would cause pollution that violates or which would violate rules, standards, or discharge or emission requirements adopted by the appropriate board under the environmental management laws. This violation is based on the fact that on January 13, 1999, January 27, 1999, and April 10, 1999, the Respondent failed to report the spills noted above to IDEM and failed to contain the spills prior to entering waters of the state, in violation of 327 IAC 2-6.1-7, and 327 IAC 2-1-6.

         Pursuant to 327 IAC 2-6.1-7, any person who operates, controls or maintains any mode of transportation or facility from which a spill occurs shall, upon discovery of a reportable spill to the soil or surface waters of the state contain the spill, if possible, to prevent additional spilled material from entering the waters of the

state; undertake or cause others to undertake activities needed to accomplish a spill response; and as soon as possible, but within two (2) hours of discovery, communicate a spill to the Department of Environmental Management, Office of Environmental Response. This violation is based on the fact that during the investigations, it was noted that the Respondent failed to notify IDEM about the spills that occurred at Site 1, Site 2, and Site 3. In addition, it was observed by IDEM representatives and DNR representatives that the Respondent failed to contain the spilled materials at Site 1 and Site 3.

         Pursuant to 327 IAC 2-1-6(a)(1), all waters at all times and at all places, including the mixing zone, shall meet the minimum conditions of being free from substances, materials, floating debris, oil or scum attributable to municipal, industrial, agricultural, and other land use practices or other discharges that will settle to form putrescent or otherwise objectionable deposits, that are in amounts sufficient to be unsightly or deleterious, that produce color, odor, visible oil sheen or other conditions in such degree as to create a nuisance, which are in amounts sufficient to be acutely toxic to, or to otherwise severely injure or kill aquatic life, other animals, plants, or humans. This violation is based on the fact that during the investigations noted above it was observed by IDEM and DNR representatives that the spilled material, crude oil, from Site 1, Site 2, and Site 3 had entered waters of the state.

     On September 22, 1999, and February 15, 2000, IDEM representatives met with the Respondent to discuss the violations cited in the Notice of Violation.

     In recognition of the settlement reached, Respondent waives any right to administrative and judicial review of this Agreed Order.

II. ORDER

1.    This Agreed Order shall be effective ("Effective Date") when it is approved by the Complainant or her delegate, and has been received by the Respondent. This Agreed Order shall have no force or effect until the Effective Date.

     Respondent shall develop and submit a Spill Prevention, Control, and Countermeasure Plan (SPCC) to IDEM within thirty (30) days of the Effective Date. If the plan is deemed inadequate by IDEM, a revised SPCC shall be submitted within fifteen (15) days of receipt of notice from IDEM of the inadequacies thereof. Once the SPCC is determined to be adequate, the Respondent shall implement the SPCC.

     All submittals required by this Agreed Order, unless notified otherwise in writing, shall be sent to:
                Solid Waste-UST Section Chief
                Office of Enforcement
                Indiana Department of Environmental Management
                100 North Senate Avenue
                P.O. Box 6015
                Indianapolis, Indiana 46206-6015


     Respondent is assessed a civil penalty of Fourteen Thousand Sixty-Two Dollars ($14,062). Said penalty amount shall be due and payable to the Environmental Management Special Fund in four (4) equal installments of Three Thousand Five Hundred Fifteen Dollars and Fifty Cents ($3,515.50). The first installment of $3,515.50 is due and payable on or before August 30, 2000. The second installment of $3,515.50 is due and payable on or before November 30, 2000. The third installment of $3,515.50 is due and payable on or before February 28, 2001. The Fourth and final installment shall be due and payable on or before May 30, 2001.

     In the event the following terms and conditions are violated, the Complainant may assess and the Respondent shall pay a stipulated penalty in the following amounts:

        Violation                    Penalty

    Order Condition # 2                $500 per day for failure to submit or modify SPCC, per IDEM's request.

     Stipulated penalties shall be due and payable within thirty (30) days after Respondent receives written notice that the Complainant has determined a stipulated penalty is due. Assessment and payment of stipulated penalties shall not preclude the Complainant from seeking any additional relief against the Respondent for violation of the Agreed Order. In lieu of assessment of any of the stipulated penalty given above, the Complainant may seek any other remedies or sanctions available by virtue of Respondent's violation of this Agreed Order, or Indiana Law, including but not limited to civil penalties pursuant to IC 13-30-4.

     Civil and stipulated penalties are payable by check to the Environmental Management Special Fund. Checks shall include the Cause Number of this action and shall be mailed to:

        Cashier
        IDEM
        100 North Senate Avenue
        P.O. Box 7060
        Indianapolis, Indiana 46207-7060

     In the event that the civil penalty required by Order Condition 4 is not paid within thirty (30) days of the Effective Date of this Agreed Order, Respondent shall pay interest on the unpaid balance at the rate established by IC 24-4.6-1-101. The interest shall continue to accrue until the civil penalty is paid in full.

     This Agreed Order shall apply to and be binding upon the Respondent, its officers, directors, principals, agents, successors, subsidiaries, and assigns. The Respondent's signatories to this Agreed Order certify that they are fully authorized to execute this document and legally bind the parties they represent. No change in ownership, corporate, or partnership status of the Respondent shall in any way alter its status or responsibilities under this Agreed Order.

     In the event that any terms of this Agreed Order are found to be invalid, the remaining terms shall remain in full force and effect and shall be construed and enforced as if the Agreed Order did not contain the invalid terms.

     The Respondent shall provide a copy of this Agreed Order, if in force, to any subsequent owners or successors before ownership rights are transferred. Respondent shall ensure that all contractors, firms and other persons performing work under this Agreed Order comply with the terms of this Agreed Order.

     This Agreed Order shall remain in effect until Respondent has complied with all terms and conditions of this Agreed Order.



TECHNICAL RECOMMENDATION:        RESPONDENT:
Department of Environmental Management

By:___________________________        By:____________________________
Paul Higginbotham, Chief
Solid Waste Section                Printed:________________________
Office of Enforcement
                            Title:__________________________

Date:_________________________            Date:__________________________

COUNSEL FOR COMPLAINANT:            COUNSEL FOR RESPONDENT:
Department of Environmental Management

By:___________________________        By:____________________________
Office of Legal Counsel
Department of Environmental Management

Date:__________________________        Date:___________________________

APPROVED AND ADOPTED BY THE INDIANA DEPARTMENT OF ENVIRONMENTAL MANAGEMENT THIS __________ DAY OF __________________, 2000.

                            For the Commissioner:

                            _signed 7/19/00_______
                            Felicia A. Robinson
                            Assistant Commissioner
                            Office of Enforcement

Converted by Andrew Scriven