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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-4229
                            )
AK INDUSTRIES, 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 AK Industries, Inc. (hereinafter referred to as "Respondent"), which owns and operates a fiberglass wastewater catch basins and covers fabrication facility at 2055 Pidco Drive, located in Plymouth, Indiana (Source).

    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. John S. Sabo,
                President and Registered Agent
                AK Industries, Inc.
                P. O. Box 640,
                Plymouth, IN 46563


    5.    Complainant conducted an inspection at the Source on March 13, 1998. Respondent was found in violation of several rules and permit conditions.

    6.    Rule 326 IAC 1-6-4(b) requires that "no facility shall be operated unless the air pollution control device(s) and measures are also in operation simultaneously and are not bypassed."

    7.    Operation condition number 8b of construction permit CP 099-2776 issued on December 9, 1994, requires that "the particulate matter overspray from the surface coating facilities shall be considered in compliance with 326 IAC 6 provided that overspray is not: ... b) accumulated on the rooftops or on the ground."

        No particulate matter controlling dry filters were in place in the following facilities: a) one of the two operational lamination booths, located in the southeast corner of the main production area, and particulate matter accumulations were observed on the ground around the exhaust for both lamination booths; b) operational gelcoat booth, located on the south side of main production area, and particulate matter accumulations were observed on the ground around the exhaust; and c) operational paint booth, located in the northeast corner of main production area, and particulate matter accumulations were observed on the ground around the exhaust, violations of 326 IAC 1-6-4(b) and the construction permit condition number 8b. After the inspection report was sent to Respondent, Respondent took appropriate corrective actions.

    8.    Operation condition number 6b of construction permit CP 099-4597 requires that "the particulate matter overspray from the surface coating facilities shall be considered in compliance with 326 IAC 6 provided that overspray is not: ... b) accumulated on the rooftops or on the ground."

        No particulate matter controlling dry filters were in place in the following facilities: a) one operational resin/chop booth, located in the southeast corner of the main production area, and particulate matter accumulations were observed on the ground around the exhaust for both lamination booths; b) two operational mandrels of the winding machines, located against west wall of the main production area; and c) two fiberglass grinding booths, located between the tube cutter and paint booth, were not connected to the baghouse collectors and emissions were being vented directly on the ground on the east side of plant; particulate matter accumulations were observed on the ground, violations of 326 IAC 1-6-4(b) and the construction permit condition number 6b. After the inspection report was sent to Respondent, Respondent took appropriate corrective actions.

    9.    Operation condition number 5 of construction permit CP 099-4597 requires that "a quarterly summary shall be submitted to Compliance Data Section ... within 30 days after the end of the quarter being reported" to verify compliance with operation condition number 4 rendering the BACT requirements inapplicable based upon the monthly total VOC limit of 4,000 pounds.

    10.    Respondent failed to submit the 3rd and the 4th quarter reports for 1997, a violation of construction permit CP 099-4597 conditions number 5.

    11.    Operation condition number 5 of construction permit CP 099-2776 requires that the BACT for the septic tank manufacturing facility will be "the use of the airless spray method with high transfer efficiency during all times of operations."

        During the inspection, Respondent failed to operate an appropriate airless spray gun, and used a conventional gun instead during the observed operations, a violation of 326 IAC 8-1-6 and of construction permit CP 099-2776 condition number 5. After the inspection report was sent to Respondent, Respondent eliminated a non-compliant spray gun.

    12.    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 shall use the appropriate control devices in all its facilities at all times when the facilities operate.

    3.    Respondent shall design a standard operating procedure (SOP) on how to use appropriate control devices, and instruct all employees involved in operation of the facilities that are required to use a control device, within thirty (30) days of the Effective Date of this Agreed Order. Respondent shall post the SOP in a place for accessible observation. Respondent shall submit a copy of the SOP to Complainant along with the list of names of instructed employees within forty five (45) days of the Effective Date of this Agreed Order.

          Respondent shall apply for and obtain appropriate approvals for all currently non- permitted facilities. Respondent shall submit such application no later than sixty (60) days of the Effective Date of this Agreed Order.


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

        Mr. Michael Stonik, 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 Twenty Nine Thousand Six Hundred Dollars ($29,600.00). 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.

    7.    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

    8.    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.

    9.    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.

    10.    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.

    11.    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.

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


TECHNICAL RECOMMENDATION:        AK INDUSTRIES, INC.:
Department of Environmental Management

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:
                            

                            ___________________________
                            Felicia Robinson George
                            Assistant Commissioner
                            of Enforcement

Converted by Andrew Scriven