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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. B-1830
    Frank Schilling, owner/developer        )
    SCHILLTON HILLS            )
SCHILLTON CONSTRUCTION CO. 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.

     Respondent is Schilling Construction Co. (hereinafter referred to as "Respondent"), who owns Schillton Hills, a development located in Lake County, Indiana.

     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 September 22, 1998 to:
    


            Mr. Frank Schilling,    
            Registered Agent for         
            Schilling Construction Co., Inc.
            8925 Louis Court                    
            St. John, Indiana 46373

     327 IAC 15-5-2 pertains to storm water run-off associated with construction activity and the need for appropriate erosion control measures. The requirements under this rule apply to all persons who:

    a.    do not obtain an individual NPDES permit under 327 IAC 15-2-6;

    b.    meet the general permit rule applicability requirements under 327 IAC 15-2-3; and

    c.    are involved in construction activity, which includes clearing, grading, excavation, and other land disturbing activities, except operations that result in the disturbance of less than five (5) acres of total land area and which are not part of a larger common plan of development or sale.

     327 IAC 15-2-5(a) states that, "Any person subject to the requirements of this article shall submit a NOI letter that complies with this section, 327 IAC 15-3, and the additional requirements in any applicable general permit rule."

     Schillton Hills is not covered by an individual NPDES Permit under 327 IAC 15-2-6, and it meets the general permit rule applicability requirements under 327 IAC 15-2-3. Based on the Notice on Intent (NOI) letter submitted to IDEM on September 6, 1994, the retention and wetland basin project has a total acreage of fifty (50) acres. Thirty-two (32) of those acres are to be disturbed during construction, thus subjecting the project to the requirements of 327 IAC 15-5.     

     327 IAC 15-5-6 pertains to the deadline for submittal of a Notice of Intent (NOI) letter and additional information and states that all information required under 327 IAC 15-3 and 327 IAC 15-5-5 shall be submitted to the Commissioner of IDEM prior to the initiation of land disturbing activities.

     According to counsel for Schilling Construction Co., Inc., construction at Schillton Hills began in February 1996, and thus land has been disturbed under the meaning of this rule.

     A letter purporting to be a NOI was submitted by the Respondent and received by IDEM on September 6, 1994. That letter was found insufficient to serve as a NOI. IDEM issued a Notice of Deficiency (NOD) letter dated October 4, 1994, concerning the NOI for Schillton Hills. The additional NOI information required was detailed in a checklist

within the letter. On February 7, 1995, a subsequent letter was sent regarding the deficiencies noted in the NOD letter requesting an amended NOI letter within eighteen days.

     Counsel for the Respondent contends that an amended NOI letter was submitted on February 15, 1996. On February 27, 1996, IDEM issued a subsequent NOD and requested an amended NOI containing the deficient information.

     On September 18, 1997, IDEM's Office of Enforcement issued a Warning of Noncompliance (WONC) to the Respondent for failure to submit all information to the Commissioner, as required under 327 IAC 15-3 and Section 5 of this Rule, prior to the initiation of land disturbing activities, in violation on 327 IAC 15-5-6.

     On September 29, 1997, the Respondent submitted a reply to the WONC and copies of the two prior letters submitted to IDEM on September 2, 1994 and February 15, 1996. No additional information was submitted in the September 29, 1997 letter.

     A follow-up warning was sent March 18, 1998, referencing the deficiencies noted in the September 29, 1997, WONC. The letter gave an additional five days for the Respondent to comply with 327 IAC 15-5-6.

     On March 30, 1998, the Respondent submitted a letter to IDEM including copies of the letters submitted to IDEM on September 2, 1994 and February 15, 1996. No additional information was submitted in the March 30, 1998 letter, and Schillton Hills continued to be in violation of 327 IAC 15-5-6.

     On March 8, 1999 IDEM's Pretreatment and Urban Wet Weather Section issued a Notice of Sufficiency for the Schillton Hills project after receiving an amended and complete NOI for the project.

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

II. ORDER

     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.

     A Notice of Termination shall be submitted to IDEM, for any and all projects completed, in compliance with 327 IAC 15-5-11.

     Respondent is assessed a civil penalty of Two Thousand Four Hundred Dollars ($2,400). 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.

     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
                Indiana Department of Environmental Management
                100 N. Senate Avenue
                P. O. Box 7060
                Indianapolis, IN 46207-7060

     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.

     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 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.

     The Respondent shall provide a copy of this Agreed Order, if in force, to any subsequent owners or successors before ownership rights are transferred. The 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:     _________________________
    Mark Stanifer, Section Chief
    Office of Enforcement            Printed: ________________________

                            Title:     ________________________

Date: _______________                Date:     _______________

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

By: _________________________            By: ________________________
Nancy Holloran
Office of Legal Counsel                
Department of Environmental Management

Date: _______________                Date: _______________

APPROVED AND ADOPTED BY THE INDIANA DEPARTMENT OF ENVIRONMENTAL MANAGEMENT THIS ___________ DAY OF ______________________, 1999.

                            FOR THE COMMISSIONER:

                             Signed 5/14/99
                            ___________________________
                            Felicia Robinson George
                            Assistant Commissioner of Enforcement

Converted by Andrew Scriven