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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. A-4034
                            )
WARTSILA NSD                    )
NORTH AMERICA, 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 Wartsila NSD North America, Inc. (hereinafter referred to as "Respondent"), who owns and operates a diesel engine manufacturing and testing plant, located in Mount Vernon, 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:

        Mr. Timothy S. Swickard            C. T. Corporation Systems
        Production Manager                Registered Agent for
        Wartsila NSD North American Corporation    Wartsila NSD
        P. O. Box 627                    North American Corporation
        Mount Vernon, Indiana 47620        One North Capitol
                                Indianapolis, Indiana 46204

    5.    Rule 326 IAC 8-2-9 limits volatile organic compound (VOC) emissions from a facility engaged in the surface coating of miscellaneous metal parts and products with an extreme performance coating to no more than 3.5 pounds VOC per gallon of coating, excluding water, delivered to a coating applicator.

    6.    Records reviewed during an inspection conducted on July 22, 1997, show that the Respondent applied surface coatings containing greater than 3.5 pounds VOC per gallon of coating, excluding water, deliver to a coating applicator, to the metal products it manufactures. This constitutes a violation of 326 IAC 8-2-9.

    7.    Respondent began to take steps to switch from the use of non-compliant coatings to compliant coatings immediately after the July inspection.

    8.    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 his delegate, and has been received by the Respondent. This Agreed Order shall have no force or effect until the Effective Date.


    2.    Respondent is assessed a civil penalty of One Thousand Five Hundred Dollars ($1,500). 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.

    3.    Civil 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

    4.    In the event that the civil penalty required by paragraph 2 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.

    5.    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.

    6.    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.

    7.    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.

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

TECHNICAL RECOMMENDATION:        WARTSILA NSD
Department of Environmental Management        NORTH AMERICA, INC.:

By:     _________________________        By: _________________________
    David P. McIver
    Air Section Chief            
    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 ____________________, 199___.

                            
                            For the Commissioner:
                            

                            ____Signed March 26, 1998_______
                            David J. Hensel
                            Director
                            Office of Enforcement

Converted by Andrew Scriven