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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,                )
                            )
            v.                )    CAUSE NO. 2000-8861-A
                            )
NUCOR STEEL,                    )
A DIVISION OF NUCOR CORPORATION    )
                            )
        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 Nucor Steel, which is a Division of Nucor Corporation (hereinafter referred to as "Respondent"), which owns and operates the steel mill located at Rural Route 2, Box 311, in Crawfordsville, Indiana.

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

    4.    Pursuant to IC 13-30-3-3, IDEM issued a Notice of Violation via Certified Mail to:

        C. T. Corporations System            David Sulc, Environmental Engineer
        Registered Agent for Nucor Steel        Nucor Steel
        Division of Nucor Corporation         Division of Nucor Corporation
        One North Capitol                Route 2, Box 311
        Indianapolis, IN 46204            Crawfordsville, IN 47933-9450

    5.    Pursuant to operation condition No. 11 of Construction Permit No. 107-3702, the gas-fired burners added to the existing radiant section of the galvanizing line, as part of a permitted modification, shall be low NOx, designed to emit no more than 90 pounds of NOx per million cubic feet of gas burned.

          In April 1995, Nucor installed twenty (20) 0.281 mmBtu/hour gas-fired burners which have a design capacity of approximately 415 pounds of NOx per million cubic feet of gas burned, a violation of permit condition No. 11, Construction Permit No. 107-3702.

          Pursuant to 326 IAC 2-1-3, a source or facility which has allowable emissions of twenty-five (25) tons or more per year of any regulated pollutant shall apply for and obtain a construction permit prior to commencing construction.

          In April 1995, Nucor installed twenty (20) 1.41 mmBtu per hour gas-fired burners to the existing preheat section of the galvanizing line without first applying for and obtaining a construction permit, a violation of 326 IAC 2-1-3.

          Pursuant to 326 IAC 2-1-4, a source or facility which has allowable emissions of twenty-five (25) tons or more per year of any regulated pollutant shall apply for and obtain an operating permit prior to commencing operation.
    
          In May 1995, Nucor began operating the twenty (20) 1.41 mmBtu/hour gas-fired burners added to the existing preheat section of the galvanizing line, without first applying for and obtaining an operating permit, a violation of 326 IAC 2-1-4.

    11.    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.

    2.    Within thirty (30) days of the Effective Date of this Order, Respondent shall submit a permit application for the twenty (20) unpermitted burners (preheat section of the galvanizing line) and a permit modification request for the twenty (20) permitted burners (radiant tube section of the galvanizing line).

         On or before August 1, 2000, Respondent shall replace the twenty (20) 0.281 mmBtu/hour gas-fired burners installed at the radiant tube section in 1995, which have a design capacity of approximately 415 pounds of NOx per million cubic feet of gas burned, with low NOx burners designed to emit no more than 200 pounds of NOx per million cubic feet of gas burned. This modification shall be implemented in accordance with the requirements of 326 IAC 2-1.1, 326 IAC 2-2, and 326 IAC 2-7. In accordance with 326 IAC 2-2, Respondent shall comply with the best available control technology (BACT) requirements for NOx emissions from these burners. If BACT is determined to be more stringent than the requirements of this Order, then Respondent shall comply with the more stringent BACT requirements.

    4.    During the first quarter of 2001, Respondent shall conduct compliance testing at the radiant tube section and preheat section of the galvanizing line to demonstrate compliance with applicable permitted NOx limits. This testing shall be conducted in accordance with the Source Sampling Procedures specified in 326 IAC 3-6.

    5.    All submittals required by this Agreed Order, unless notified otherwise in writing, shall be sent to:

            Matthew Stuckey, Enforcement Case Manager
            Office of Enforcement
            Indiana Department of Environmental Management
            100 N. Senate Avenue
            P. O. Box 6015
            Indianapolis, IN 46206-6015

    6.    Respondent is assessed a civil penalty of One Hundred Seventy Thousand Seven Hundred Forty Dollars ($170,740). Said penalty amount shall be due and payable to the Environmental Management Special Fund within thirty (30) days of the Effective Date of this Agreed Order.
    
          As a Supplemental Environmental Project (SEP), the Respondent shall install a selective catalytic reduction (SCR) system which controls NOx emissions from each of the thirty-six (36) primary burners and the three (3) auxiliary burners in the preheat section of the galvanizing line. The SCR shall be installed and operational by no later than December 1, 2000. Implementation of this SEP will significantly reduce NOx emissions from this facility.

          Respondent estimates that this SEP will cost Eight Hundred Ninety Thousand Dollars ($890,000). Within thirty (30) days after the Effective Date Respondent shall pay a portion of the civil penalty stated in paragraph 6 above, in the amount of Ninety One Thousand Five Hundred Forty Dollars ($91,540) . Upon the completion of the SEP, Respondent shall submit written notice and documentation to IDEM which substantiates all actions taken and costs incurred with respect to the SEP. In the event that the cost of the SEP is less than One Hundred Fifty-Eight Thousand Four Hundred Dollars ($158,400), Respondent shall pay fifty percent (50%) of the difference between the proposed cost ($158,400) and the actual cost of the SEP.

          In the event that the Respondent does not complete the SEP by December 1, 2000, the full amount of the civil penalty as stated in paragraph 6 above, plus interest established by IC 24-4.6-1-101 on the remaining amount, less the portion of the civil penalty Respondent has already paid, will be due within fifteen (15) days from receipt of IDEM's notice to pay. Interest shall be calculated on the amount due from the date which is thirty (30) days after the Effective Date of this Order until the full civil penalty is paid.

    10.    Force Majeure, for purposes of this Agreed Order, is defined as any event arising from causes beyond the control of the Respondent that delays or prevents the performance of any obligation under this Agreed Order despite Respondent's best efforts to fulfill the obligation. The requirement that the Respondent exercise "best efforts to fulfill the obligation" includes using best efforts to anticipate any potential force majeure event and best efforts to address the effects of any potential force majeure event (1) as it is occurring and (2) following the potential force majeure event, such that the delay is minimized to the greatest extent possible. Force Majeure does not include financial inability to complete the work required by this Agreed Order or increases in costs to perform the work.

    11.    The Respondent shall notify IDEM by telephone within three (3) business days and in writing no later than seven (7) calendar days after any event which the Respondent contends is a force majeure. Such notification shall describe the anticipated length of the delay, the cause or causes of the delay, the measures taken or to be taken by the Respondent to minimize the delay, and the timetable by which these measures will be implemented. The Respondent shall include with any notice all available documentation supporting its claim that the delay was attributable to a force majeure. Failure to comply with the above requirements shall preclude Respondent from asserting any claim of force majeure for that event. The Respondent shall have the burden of demonstrating that the event is a force majeure. The decision of whether an event is a force majeure shall be made by IDEM. Said decision shall be communicated to the Respondent.

    12.    If a delay is attributable to a force majeure, IDEM shall extend, in writing, the time period for performance under this Agreed Order, by the amount of time that is attributable to the event constituting the force majeure.

    13.    In the event that Respondent fails to submit the permit application and/or modification request, as required by Order paragraph 2, Complainant will assess, and Respondent shall pay, a stipulated penalty in the amount of Two Hundred ($200) for each calendar day, beyond the date specified, until IDEM received the application and/or modification request.

    14.    In the event that Respondent fails to install the burners, as required by Order paragraph 3, Complainant will assess, and Respondent shall pay, a stipulated penalty in the amount of Two Thousand Dollars ($2000) for each calendar day, beyond the date specified, until the burners are installed and operational.     

    15.    In the event that Respondent fails to conduct the required tests, as specified in Order paragraph 4 above, Complainant will assess, and Respondent shall pay, a stipulated penalty in the amount of One Thousand Dollars ($1000) for each calendar day, beyond the final day of the first quarter of 2001, until the tests are completed.

    16.    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 any of the stipulated penalties 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.


    17.    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 N. Senate Avenue
            P. O. Box 7060
            Indianapolis, IN 46207-7060

    18.    In the event that the civil penalty required by paragraph 6 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.

    19.    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.

    20.    In the event that any terms of the 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.

    21.    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.

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

TECHNICAL RECOMMENDATION:        RESPONDENT:
Department of Environmental Management        Nucor Steel, A Division of Nucor Corp.

By:     _________________________        By: _________________________
    David P. McIver
    Chief, Air Section            
    Office of Enforcement            Printed: ______________________

                            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 ____________________, 20___.

                            For the Commissioner:

                            __Signed on 2/2/00_____
                            Felicia A. Robinson
                            Assistant Commissioner
                            Office of Enforcement

Converted by Andrew Scriven