Converted WP file ./AO/B-2155

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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-2155
                            )
CHRYSLER CORPORATION            )
                            )
        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 Chrysler Corporation (hereinafter referred to as "Respondent"), which owns and operates the Chrysler Kokomo Transmission Plant (KTP) at 2401 South Reed Road, located in Kokomo, Howard County, Indiana.

3.    The Indiana Department of Environmental Management ("IDEM") has jurisdiction over the parties and subject matter of this action.

4.    The Respondent is authorized by the Kokomo Board of Public Works & Safety to discharge industrial wastewater to the City of Kokomo wastewater treatment system (POTW) in compliance with Chapter 52 of the Kokomo Municipal Code, all applicable

provisions of Federal or State law, regulation or rule, and in accordance with discharge outfall(s), effluent limitations, monitoring requirements, and other conditions set forth in the Industrial Pretreatment Permit (hereinafter referred to as the " IPP"). The terms and conditions of the IPP number 001, issued to Respondent, have been violated. The IPP became effective on June 28, 1996, with an expiration date of June 28, 2001.

5.    327 IAC 5-12-2(a)(1) states, in substance, that pollutants introduced into POTWs by any source of nondomestic wastewaters shall not pass through or interfere with the operation or performance of the POTW. These general prohibitions and specific prohibitions stated in the rule apply to any such user of a POTW whether or not the user is subject to national categorical standards or any other national, state, or local pretreatment standards or requirements.

6.    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, visible oil sheen, 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;

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

7. IC 13-30-2-1 requires, in substance, that a person may not discharge, emit, cause, allow, or threaten to discharge, emit, cause, or allow any contaminant or waste including any noxious odor, either alone or in combination with contaminants from other sources, into the environment or into any publicly owned treatment works in any form which causes or would cause pollution which violates rules, standards, or discharge of emission requirements adopted by the appropriate board pursuant to this article.

8.    On April 2, 1997, Respondent intentionally discharged approximately 110,000 gallons of contaminated wastewater into the Kokomo wastewater treatment collection system which caused interference at the wastewater treatment plant (WWTP), in violation of 327 IAC 5- 12-2(a)(1) and IC 13-30-2-1.

9.    The wastewater from KTP was contaminated with a coolant oil in concentrations reported by Respondent to be approximately 50,000 mg/l.

10.    The WWTP discharges into the Wildcat Creek. On April 3 & 4, 1997, an oil sheen was apparent on treatment units and in the final clarifiers as a result of Respondent discharging "oil contaminated" wastewater to the WWTP, in violation of 327 IAC 2-1-6(a)(1) and IC 13-30-2-1.

11.    327 IAC 5-11-5 states in relevant part that the commissioner may [independently of any enforcement proceedings by the POTW] take enforcement measures [including the assessment of civil penalties] against the industrial user for violations of pretreatment standards and requirements contained in the pretreatment rules, 327 IAC 5-11-1 through 327 IAC 5-15-12.

12.    327 IAC 3-2-1 states that no person shall cause or allow the construction, installation, or modification of any water pollution treatment/control facility or sanitary sewer, without a valid construction permit issued by the commissioner.

13.    On April 2, 1997, Respondent intentionally installed a discharge point into a section of the Kokomo sanitary sewer collection system without obtaining a valid construction permit approval from IDEM, in violation of 327 IAC 3-2-1.

14.    Respondent waives its right to issuance of a Notice of Violation and to the settlement period of sixty (60) days as provided for by IC 13-30-3-3.

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

I. 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.     The Respondent is hereby assessed a Civil Penalty of Thirty-Seven Thousand Five Hundred Dollars ($37,500). Within thirty (30) days of the Effective Date of the Agreed Order, the Respondent shall pay an up front civil penalty of Thirty Thousand Six Hundred Sixty-Seven Dollars ($30,667) . The payment shall be submitted to the Environmental Management Special Fund, as directed by paragraph 5. The remaining Six Thousand Eight Hundred Thirty-Three Dollars ($6,833) of the Civil Penalty will be offset by the Respondent's completion of a Supplemental Environmental Project (SEP) as described in Exhibit A. and incorporated by reference, in lieu of payment of the actual dollar amount.

3.    The Respondent has submitted a SEP proposal quoting a total price of Twenty Thousand Five Hundred Dollars ($20,500). Of this amount, Six Thousand Eight Hundred Thirty-Three ($6,833) may be offset from the total Civil Penalty. The total funds expended on the SEP shall be a minimum of $20,500. If the Respondent does not spend the full $20,500 within the specified time period, subject to any extension for cause due to force majeure, the Respondent agrees to pay the remaining amount of the Civil Penalty, offset by the balance of the funds not expended for the SEP at a 3-1 ratio against the Civil Penalty, plus interest at the rate established by IC § 24-4.6-1-101, to the Environmental Management Special Fund. Payment of any remaining Civil Penalty shall be submitted within fifteen (15) days from receipt of a notice to pay from the IDEM. Interest on the remaining Civil Penalty shall be paid from the Effective Date of this Agreed Order.

4.    The Respondent has elected to perform a Pollution Control SEP that provides for the purchase of a "Dual Cell Arthur Respirometer with Data Collection and Storage Unit and Printer Output" for the City of Kokomo. The proposed SEP, which is attached as Exhibit A., has been approved and is hereby incorporated by reference into this Agreed Order and shall be an enforceable part thereof. Respondent shall have sixty (60) days from the Effective Date of this Agreed Order to complete the SEP. Within thirty (30) days after completion of the SEP, Respondent shall submit itemized documentation of costs incurred in performing the SEP to IDEM. In the event the SEP cost more than $20,500, the Respondent assumes responsibility for all additional costs without any further offset of the Civil Penalty as cited above in paragraph 2. In the event the SEP is not completed within the 60 day period, Respondent shall receive no offset, and the balance of Six Thousand Eight Hundred Thirty-Three ($6,833) shall become immediately due and payable. Interest on the remaining Civil Penalty shall be paid from the Effective Date of this Agreed 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
                Indiana Department of Environmental Management
                100 N. Senate Avenue
                P. O. Box 7060
                Indianapolis, IN 46206-7060

6.    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.

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 Respondent has complied with all terms and conditions of this Agreed Order.

TECHNICAL RECOMMENDATION: CHRYSLER CORPORATION:
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.

For the Commissioner:

                            Signed: 08/25/97
                            David J. Hensel
                            Director
                            Office of Enforcement

Converted by Andrew Scriven