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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-2044
                            )
EASTERN HENDRICKS COUNTY
UTILITY, 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 Eastern Hendricks County Utilities (hereinafter referred to as "Respondent"), who owns and operates a 0.1 MGD design capacity semipublic Class I, extended aeration wastewater treatment plant located one quarter mile west of the intersection of SR 267 and CR 100 North near Avon, IN.

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 Drapalik, President
            Eastern Hendricks County Utility, Inc.
            P.O. Box 1913
            Martinsville, IN 46151

5.    The following conditions apply to all National Pollutant Discharge Elimination System ("NPDES") Permits and are included in Respondent's NPDES Permit No. IN 0021806.

     327 IAC 5-2-14 requires, in substance, that any permittee required to monitor under 327 IAC 5-2-13 shall maintain records of all monitoring information and monitoring activities as set forth in the rule.

     327 IAC 5-2-15 and 327 IAC 2-4-1 through 2-4-4 require, in relevant part, that a permittee submit Discharge Monitoring Reports (DMRs) and Monthly Reports of Operation (MROs) to the commissioner. Such reports shall:
        a.    include flow measurements and waste characteristics;
        b.    be prepared by a certified wastewater treatment plant operator;
        c.    be submitted prior to the 28th day of the following month.

    327 IAC 5-2-8
requires, in relevant part, that the following conditions apply to all NPDES permits and shall be incorporated into the permits either expressly or by reference:

        1.    A permittee shall comply with all terms and conditions of its NPDES permit; any permittee non-compliance constitutes a violation of the Clean Water Act (CWA) and the Environmental Management Act (EMA) and is grounds for enforcement action;

        2.    The permittee shall take all reasonable steps to minimize or correct any adverse impact on the environment resulting from noncompliance with the permit;

        3.    The permittee shall at all times maintain in good working order and efficiently operate all facilities and systems (and related appurtenances) for collection and treatment which are necessary for achieving compliance with the terms and conditions of the permit;

        4.    The permittee shall allow an authorized representative of the commissioner to have access to any records that must be kept under the terms and conditions of the permit;

        5.    The permittee shall comply with monitoring, recording, and reporting requirements established in accordance with 327 IAC 5-2-13, 327 IAC 5- 2-14, and 327 IAC 5-2-15.




     NPDES Permit No. IN 0021806 Part I, B.8. states, in part, that all records and information resulting from the monitoring activities shall be retained for a minimum of three (3) years, or longer, if requested by IDEM. Part II, B.1. states, in part, that the permittee shall allow the Commissioner of IDEM or his representatives, upon the presentation of their credentials:

    a.    To enter upon the permittee's premises where an effluent source is located or in         which any records are required to be kept; and

    b.    At reasonable times, to have access to and copy any records required to be kept         under the terms and conditions of the permit, to inspect any monitoring equipment         or monitoring method required in this permit, and to sample any discharge of         pollutants.

6.    During a January 30, 1995 IDEM inspection, it was observed that laboratory data sheets were not available on site for review. IDEM wrote an Operation and Maintenance (O&M) Inspection letter to Respondent dated March 1, 1995 regarding the results of the January 30, 1995 inspection, and asked for a written response within twenty (20) days of letter date, however no written response was submitted by Respondent. During a May 12, 1995 IDEM inspection, it was observed that MROs for February and March, 1995 were not available for viewing, nor were any maintenance records. IDEM issued a Warning of Noncompliance (WONC) on July 19, 1995 for failure to submit MROs for the months of March through June, 1994, along with the failure to maintain records for three (3) years at the facility. During August 11, 1995 and January 17, 1996 IDEM inspections, it was noted that laboratory data sheets were still not available on site for review, but were instead apparently kept at Mooresville and Heritage contract laboratory testing sites. Therefore, Respondent is in violation of NPDES Permit No. IN 0021806, 327 IAC 5-2-14, 327 IAC 5-2-15, 327 IAC 2-4-1 through 2-4-4 and 327 IAC 5-2-8.    

7.     327 IAC 2-1-6(a)(1) states, in substance, that all waters at all times and at all places, including the mixing zone, shall meet the minimum conditions of being free from substances, materials, floating debris, oil or scum attributable to municipal, industrial, agricultural, and other land use practices or other discharges:

        a.    that will settle to form putrescent or otherwise objectionable deposits;

        b.    that are in amounts sufficient to be unsightly or deleterious;

        c.    that produce color, odor or other conditions in such degree as to create a nuisance;

        d.    which are in amounts sufficient to be acutely toxic to, or to otherwise severely injure or kill aquatic life, other animals, plants, or humans; and


        e.    which are in concentrations or combinations that will cause or contribute to the growth of aquatic plants or algae to such degrees as to create a nuisance, be unsightly, or otherwise impair the designated uses.

8.     Records review for the calendar years 1994 through 1996 and first quarter of 1997 indicated that Respondent was in violation of NPDES permit final effluent limitations for Ammonia Nitrogen (NH3) for the months of: January through November, 1994. Respondent was in violation of NPDES permit final effluent limitations for Dissolved Oxygen (D.O.) for the months of: January and June through August, 1994. Respondent was in violation of NPDES permit final effluent limitations for Biochemical Oxygen Demand, five day (BOD5) for the months of: January through October, and December, 1994; March, 1995; March, May, and July through September, 1996; and January, 1997. Respondent was in violation of NPDES permit final effluent limitations for Total Suspended Solids (TSS) for the months of: January through October, 1994; and March, and May, 1996. Respondent was in violation of NPDES permit final effluent limitations for Total Residual Chlorine (TRC) for the months of: June, 1994; June and August, 1995. In all, there were 20 months of effluent violations in the thirty-seven (37) months of DMRs reviewed from January, 1994 through January, 1997. Flow data was found to be missing from the DMRs submitted for the months of: April through July, 1996.

9.    IDEM issued a WONC on November 10, 1994, for final effluent violations for the months of: May, August, and September, 1993; January, March, April, June, July, and August, 1994. The WONC also noted that the facility lacked a flow meter. Respondent sent a letter dated November 22, 1994, that attempted to explain the final effluent violations by an intermittent lack of representative sampling and/or unusual operational occurrences, such as supernatant draw-offs, sludge disposal haulings, and process equipment failures. Respondent also indicated a flow meter does exist, but has been inoperative until recently repaired. Respondent expressed an intention to renovate the wastewater treatment plant and remove excessive I/I.

10.    During a January 30, 1995 IDEM inspection, it was observed that the Tenth Street lift station does not have locks on the wet well, the flow meter was not calibrated, sludge was present in the tributary to White Lick Creek, the chlorine contact tank needed cleaning and the secondary clarifier was full of floating solids. During the same January 30, 1995 IDEM inspection, it was further noted as unsatisfactory that even though the sewer is one hundred percent (100%) sanitary, Infiltration/Inflow (I/I) problems exist during heavy rains, and neighbors called regarding failed conditions at lift stations during the month of December, 1994. IDEM wrote an Operation and Maintenance (O&M) Inspection letter to Respondent dated March 1, 1995 regarding the results of the January 30, 1995 inspection, and asked for a written response within twenty (20) days of letter date, which was not submitted.

11.    During an April 5, 1995 IDEM followup inspection, it was observed that pockets of sludge were present in the tributary to White Lick Creek, one of the Red Oak lift station pumps was out of service, the chlorine contact tank and clarifier were being cleaned, but were both still full of sludge. Comments attached to the same April 5, 1995 inspection report noted that a

broken return line from secondary clarifier to aeration was allowing spilled sludge to run off the site, and some evidence of puddles existed around the perimeter fence.

12.    During a May 12, 1995 IDEM followup inspection, it was observed that floating ash, sludge worms, and algae were present in the chlorine contact tank and secondary clarifier, and both still needed cleaning. Also, the chlorine meter was observed to be of an unapproved type, the maintenance program and housekeeping were both noted as unsatisfactory, and a lift station failure had occurred on April 21, 1995 resulting in a bypass of untreated wastewater.

13.    IDEM issued a Sewer Ban Early Warning Notification to Respondent on June 15, 1995 because actual flow from the wastewater treatment facility was found to be at ninety percent (90%) of its hydraulic design capacity.

14.    IDEM issued another WONC on July 19, 1995 for final effluent violations for the months of September through December, 1994; and March, 1995. The WONC also noted the failure of the lift stations on May 28, 1991, February 28, 1994, December 27, 1994, and April 22, 1995. The WONC requested a detailed explanation and time table of the proposed construction Respondent had outlined in his November 22, 1994 letter. Respondent did not submit this information in any sufficient detail.

15.    During an August 11, 1995, IDEM followup inspection, general improvements were noted, however, floating solids were still unsatisfactorily present in the secondary clarifier. An automatic dialer system was being installed for lift station alarms, and most of the other operational problems were being effectively corrected.

16.    During an October, 24, 1995 IDEM followup inspection, it was observed that the operator was not at the facility. While the effluent was clear, the secondary clarifier had floating sludge. The telephone line for Red Oak lift station's automatic dialer system was observed to have been run.

17.    During a November 28, 1995 IDEM followup inspection, it was observed that the secondary clarifier had floating sludge.

18.    During a January 17, 1996 IDEM followup inspection, it was observed that the receiving stream had solids and paper products along the banks. Also, the facility was observed to be bypassing the flow meter. It was noted that the facility operates by removing sludge on a regular basis, but does not use mixed liquor suspended solids (MLSS) concentration as a process control test.

19.    During a July 15, 1996 IDEM inspection, sludge was observed to be present in the receiving stream.    

20.    The conditions found in Paragraphs 15 through 19 constitute violations of Respondent's NPDES Permit, 327 IAC 5-2-8, and 327 IAC 2-1-6 (a)(1).


21.    IDEM issued the draft NPDES permit No. IN 0021806 on August 29, 1995, and received a request for a public hearing on same from Oak Bend Estates Home Owners' Association on October 5, 1995. A public meeting was held on December 20, 1995 at Washington Township Library. Concerns raised at the meeting were summarized and addressed to Respondent in two undated letters from IDEM that were written on or about April 9, 1996 and April 22, 1996. These letters were reported as received by Respondent on May 23, 1996 and April 24, 1996 in Respondent's letter dated July 1, 1996. In this July 1, 1996 letter, Respondent did not adequately respond to the eleven (11) concerns IDEM had summarized.

22. The original Respondent sold his interest in the utility in 1997. Mr. Jon Handy, immediately initiated contact with IDEM, with the understanding that this Agreed Order would be directly binding upon him, as a successor of the Respondent. A settlement conference was held September 10, 1997 with the new owner, who requested an opportunity to demonstrate a good faith compliance effort at the treatment facility with submission of a construction permit application for treatment plant expansion. Representatives of IDEM inspected the treatment plant, as operated by Respondent's successor, and discussed plans and specifications for the expansion of the facility.

23.     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.     Within ninety (90) days of the Effective Date of this Agreed Order, the Respondent shall submit to IDEM for its approval a Compliance Plan (CP) which addresses the deficiencies and violations noted herein. This plan shall include but not be limited to:

        a.     Operation and Maintenance (O&M) Manual for use in training             operational personnel and providing a Standard Operating Procedure             (SOP) for effective O&M of all of the treatment processes and                  equipment. The O&M Manual will include design and use of log-sheet             forms to document actual monitoring, process control, and maintenance             at the facility on a daily basis. The O&M Manual shall also include             requirements for ready availability of all needed information for on-site             inspection.

        b.     Quality Assurance/ Quality Control (QA/QC) Laboratory Manual             for use in training operators and/or laboratory personnel and providing             SOPs for accurate sampling, analysis, and record keeping of all permit             parameters.

        c.     Interim Measures to be taken to operate the existing POTW as                  efficiently as possible until any new plant additions are completed.

        d.     Methods To Assure Timely and Complete Submission of DMRs,             MROs and Compliance with NPDES Permit Effluent Limits.

        e.    A Method To Assure Compliance with the requirement for the plant's             certified operator to prepare all reports, as stated in 327 IAC 2-4-4.

    3. The CP is subject to the approval of IDEM. If the plan is deemed inadequate by IDEM, a revised CP shall be submitted within fifteen (15) days of receipt of notice from IDEM of the inadequacies thereof. If after the submission of the revised document(s) IDEM still finds the document(s) are inadequate, then IDEM may require further modification of the CP as necessary to meet IDEM's requirements. If further modification does not meet IDEM's approval, IDEM will suggest appropriate modification to be undertaken by Respondent within a specified time frame. If such modification is not timely undertaken or an alternative plan timely submitted by Respondent is not approved by IDEM, the Respondent will be liable for stipulated penalties. Respondent, upon written notification by IDEM, shall immediately implement the approved plan, including the dates for completion of the schedule. The approved plan shall be incorporated into the Agreed Order and shall be deemed an enforceable part thereof.
    
4.    All submittals required by this Agreed Order, unless notified otherwise in writing, shall be sent to:
                Section Chief, Water Enforcement
                Office of Enforcement
                Indiana Department of Environmental Management
                100 N. Senate Avenue
                P. O. Box 6015
                Indianapolis, IN 46206-6015

5.    Respondent is assessed a civil penalty of Four Thousand and Fifty Dollars ($4,050). 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.

6.    In the event the following terms and conditions are violated, the Complainant may assess and the Respondent shall pay a stipulated penalty in the following amounts:

         Violation                        Penalty
         Paragraph 2.            $200 per week CP submitted late;



        Paragraph 3.            $200 per week any CP approved milestone dates                         or other terms are not met;

7.    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
                Indiana Department of Environmental Management
                100 N. Senate Avenue
                P. O. Box 7060
                Indianapolis, IN 46206-7060

8.    In the event that the civil penalty required by paragraph 5 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, specifically paragraphs 1 through 5.


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: ________________________
Office of Legal Counsel                
Department of Environmental Management

Date: _______________                Date: _______________

APPROVED AND ADOPTED BY THE INDIANA DEPARTMENT OF ENVIRONMENTAL MANAGEMENT THIS _______________________ DAY OF ____________________, 1997.

                            
                            Signed 1/18/98
                            ___________________________
                            John M. Hamilton                                         Commissioner


Converted by Andrew Scriven