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-4428
                            )
PRECISION PRODUCTS GROUP, INC.,        )
PARAMOUNT TUBE DIVISION            )
                            )
        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 Precision Products Group, Inc.-Paramount Tube Division (hereinafter referred to as "Respondent"), which owns and operates a paper tube coating facility at 1430 Progress Road, located in Ft. Wayne, 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:

            John P. Koch, Jr.,            United States Corporation Co.
            Vice President and            Registered agent for:
            General Manager            Precision Products Group, Inc.
            Precision Products Group, Inc.    251 E. Ohio
            1430 Progress Road            Indianapolis, IN 46204
            Fort Wayne, IN 46898

    5.    Rule 326 IAC 2-7-4 requires the owner of each Part 70 source to submit a timely and complete permit application.
        
    6.    The Respondent's Part 70 permit application was received after the December 13, 1996 submission deadline, a violation of Rule 326 IAC 2-7-4.

    7.    Rule 326 IAC 2-7-3 requires that no Part 70 source may operate after the time that it is required to submit a timely and complete application.

    8.    The Respondent continued to operate following the December 13, 1996 Part 70 permit submission deadline and prior to applying for and receiving a Part 70 permit, a violation of Rule 326 IAC 2-7-3.

          Rule 326 IAC 2-1-3(a) requires that no person required by section 1(b)(1) of this rule to comply with this section shall commence construction or modification of any source or facility without first applying for and obtaining a construction permit from the commissioner.

    10.    Rule 326 IAC 2-1-4(a) requires that no person shall operate any source or facility subject to section 1(b)(1) of this rule without first applying for and obtaining a permit to operate the source or facility from the commissioner.

    11.    On March 25, 1997, the Respondent submitted a Part 70 permit application to the Office of Air Management which revealed that the facility has operated since at least 1974 without first applying for and receiving a construction and operation permit, a violation of Rule 326 IAC 2-1-3(a) and 326 IAC 2-1-4(a).

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

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

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

    3.    Respondent is assessed a civil penalty of Seven Thousand Dollars ($7,000.00).
         Within thirty (30) days of the effective date of the Agreed Order, the Respondent         shall pay a cash penalty of One Thousand Four Hundred dollars ($1,400.00). The payment shall be submitted to the Environmental Management Special Fund, as directed by paragraph 4. In lieu of payment of the remaining Civil Penalty, the Respondent shall perform and complete the Supplemental Environmental Project ("SEP"), as described in Attachment A. Attachment A is hereby incorporated by reference and made a part of this Agreed Order. The total funds expended on the SEP shall be a minimum of Eleven Thousand Two Hundred Dollars ($11,200.00). If the SEP is not completed in accordance with this agreement and within the specified time period, the Respondent agrees to pay the remaining amount of the Civil Penalty, plus interest at the rate established by IC 24-4.6-1-101, to the Environmental Management Special Fund. Payment of the remaining Civil Penalty shall be submitted within fifteen (15) days from receipt of a notice to pay from IDEM. Interest on the remaining Civil Penalty shall be paid from the effective date of this Agreed Order.

         The Respondent shall complete the SEP described in Attachment A within one year of the effective date of this order. The SEP will be considered complete when at least 90% of the varnish used in the Dip and Bake process is Ranbar B7- 373. If more than one year is required to complete the SEP Plan, Respondent may petition the Office of Enforcement for an extension of time. Respondent shall commence the SEP immediately upon receipt of IDEM's approval. The SEP plan as approved shall be incorporated into and made an enforceable part of this Order.

    5.    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

    6.    In the event that the civil penalty required by paragraph 3 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.

    7.    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.

    8.    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.

    9.    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.

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

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 ____________________, 199___.

                            
                            For the Commissioner:
                            

                            Signed August 18, 1999
                            Felicia Robinson George
                            Assistant Commissioner of Enforcement

In 1998, Paramount Tube emitted 20 tons of mixed Xylene into the atmosphere from the Dip and Bake process operation. We currently use a solvent-based varnish, which requires the use of Xylene as a thinner. We propose a pollution prevention project that involves changing to a varnish that doesn't contain HAP's. This varnish is manufactured by Ranbar, item no. B7-373. This process change would take approximately one year to complete. This timetable would include comprehensive testing and file creation by Underwriter's Laboratory, installation of new steel dip tank liners and individual customer testing. The cost of this project is as follows:

        Underwriter's Laboratory fees     $2,000.00
        New steel dip tank liners         $10,000.00
        Total project costs            $12,000.00

The above expenses do not include any Paramount Tube labor costs for implementing this new system. In addition, we will experience an increase in our raw material of approximately $46,800.00 per year. This is based on our 1998 purchase of 3,245 gallons of Xylene at $1.69 per gallon and 3,850 gallons of Y-210 varnish at $8.30 per gallon. The new varnish is $19.69 per gallon. Estimated purchases per year would be 4,000 gallons.

The time line is dependent upon the testing performed by Underwriter's Laboratory and our customer's testing schedule. The Underwriter's Laboratory testing could be completed within two or three months. Individual testing of the new varnish will start with our top 50 customers, continuing until all customers have been switched over to the new varnish. This part of the proposal will take approximately six months to complete. The installation of the new dip tank liners will take approximately three months. This would completely eliminate the use of Xylene for our Dip and Bake process, at Paramount Tube.

Converted by Andrew Scriven