STATE OF INDIANA    )        BEFORE THE INDIANA DEPARTMENT
                )    §§:    OF ENVIRONMENTAL MANAGEMENT
COUNTY OF MARION    )

COMMISSIONER OF THE DEPARTMENT    )
OF ENVIRONMENTAL MANAGEMENT,    )
                            )
        Complainant,            )
                            )
            v.                )    CAUSE NO. B - 2248
                            )
CAMBRIDGE FOODS INC.,            )
                            )
        Respondent.                )

2.    Respondent is Cambridge Foods, Inc., (hereinafter referred to as "Respondent"), who until 1998 owned and operated a company doing business located in Cambridge City, Wayne County, Indiana (the "Facility"). In 1997, Cambridge Foods, Inc. merged into Maplehurst Farms, Inc. Effective January 6, 1998, Maplehurst Farms, Inc. sold substantially all its assets, including the Facility, to Maplehurst Farms, LLC, an affiliate of Dean Foods Company. Maplehurst Farms, Inc. has changed its name to and is now known as AMSCOR, Inc. The Facility is no longer in operation.

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 on April 27, 1998 to:

                     Mr. Edward Hobson, Plant Manager
                    Cambridge Foods, Inc.
                    151 South Green Street
                    P.O. Box 267
                    Cambridge City, Indiana 47327

5.    The Respondent was issued the Industrial Wastewater Pretreatment Permit No. INP000114 (the Permit) on May 1, 1997. The permit is due to expire on February 28, 2002, but the Respondent has notified IDEM that the Facility no longer is in operation and has requested that the Permit be terminated, effective on December 31, 1997. The Permit authorized the Respondent to discharge process and sanitary water from the industrial facility to the Western Wayne Regional Sewer District (WWRSD) wastewater treatment plant located in Cambridge City, Wayne County, Indiana. The WWRSD is authorized to discharge to the West Fork of the Whitewater River, in accordance with effluent limitations, monitoring requirements, and other conditions as set forth in the Permit.

6.    Part II.A.1. of the Permit states, in part, that all discharges authorized herein shall be consistent with the terms and conditions of this Permit. The discharge of any pollutant identified in this Permit more frequently than or at a level in excess of that authorized shall constitute a violation of the Permit.

7.    Part II.A.6. of the Permit provides, in part, that the permittee shall take all reasonable steps to minimize any adverse impact to the sewage treatment plant resulting from the noncompliance with any effluent limitations specified in this Permit, including such accelerated or additional monitoring necessary to determine the nature and impact of the noncomplying discharge.

8.    Article V. Section 3. of the Cambridge City sewer use ordinance (SUO) states, in part, that no person(s) shall discharge or cause to be discharged any of the following described waters or wastes to any public sewers:

    (c)    any waters or wastes having a pH lower than six (6) or greater than nine (9), or having any other corrosive property capable of causing damage or hazard to structures, equipment, and personnel of the wastewater works.

    (d)    Solid or viscous substances in quantities or of such size capable of causing obstruction to the flow in sewers, or other interference with the proper operation of the wastewater facilities.

9.    Article V. Section 4. of the SUO states, in part, that the following described substances, materials, waters, or waste shall be limited in discharges to municipal systems in concentrations or quantities which will not harm either the sewers, wastewater treatment process or equipment, will not have an adverse effect on the receiving stream, or will not otherwise endanger lives, limb, public property, or constitute a nuisance:

        . . .
    (c)    wastewater from industrial plants containing floatable oils, fats, or grease. . .

    (f)    any water or wastes containing odor-producing substances exceeding limits which may be established by the superintendent.

10.    Part I.B.1. of the Permit provides that pollutants introduced into publicly owned treatment works (POTWs) by any source of nondomestic wastewaters shall not pass through or interfere with the operation or performance of the POTW.

11.    Part I.A.1. Table 1 of the Permit requires, in part, that the following discharges shall be limited and monitored by the permittee as specified below:

    a.    discharge from Outfall 001 is limited for Biochemical Oxygen Demand (BOD) to a daily maximum discharge of 300 mg/l.

    b.    discharge from Outfall 001 is limited for Total Suspended Solids (TSS) to a daily maximum discharge of 300 mg/l.

    c.    discharge from Outfall 001 shall be limited to a daily range for the discharge of pH to 6-9 s.u.

12.    Violations of 327 IAC 5-15, Article V. Sections 3 and 4 of the SUO and Part I. A.1., Table 1 and other provisions set forth in the Permit are evidenced by the following:

    a.    The Respondent has reported on Discharge Monitoring Reports (DMRs) that BOD exceeded permit limits for six (6) months from April 1997 to September 1997:

                                 Maximum Daily Concentration
         BOD Limit            Date        Reported on DMRs

        300 mg/L            4/30/97    3000 mg/l
        Daily Maximum        5/31/97    3176 mg/l
                        6/30/97    1290 mg/l
                        7/31/97    4200 mg/l

                        8/31/97    4352 mg/l
                        9/30/97    3340 mg/l

    b.    The Respondent has reported on DMRs that TSS exceeded permit limits for six (6) months from April 1997 to September 1997:

                                 Maximum Daily Concentration
         TSS Limit            Date        Reported on DMRs

        300 mg/L            4/30/97     600 mg/l
        Daily Maximum        5/31/97     977 mg/l
                        6/30/97     533 mg/l
                        7/31/97    1105 mg/l
                        8/31/97    2073 mg/l
                        9/30/97    1113 mg/l

    c.    The Respondent has reported on DMRs that pH exceeded permit limits for six (6) months from April 1997 to September 1997:

                                Maximum Daily Concentration
         pH Limit            Date        Reported on DMRs

        6.0-9.0 s.u.            4/30/97    10.302 s.u.
        Daily Maximum        5/31/97     9.719 s.u.
                        6/30/97     9.701 s.u.
                        7/31/97     9.012 s.u.
                        8/31/97     11.28 s.u.
                        9/30/97    10.043 s.u.

13.    327 IAC 5-12-2(a)(1) requires that pollutants introduced into publicly owned treatment works (POTWs) by any source of nondomestic wastewaters shall not pass through or interfere with the operation or performance of the POTW.

14.    On July 17, 1997, it was noted in the inspection report for WWRSD that the sludge inventory was high at the plant, the dissolved oxygen (DO) was low and that the Respondent was contributing to 300+ mg/l of BOD.

15.    On September 24, 1997, the WWRSD submitted a letter to IDEM indicating the following:

        "The Western Wayne Regional Sewage District's treatment plant has violated all the permit discharge parameters for ammonia, SS (suspended solids), and E. coli.

The violations are a result of shock loadings from Cambridge Foods, (Inc.). Cambridge Foods, (Inc.) is in violation of several parameters of its pretreatment Permit."

16.    As evidenced by the effluent violations and the pass through and interference at the WWRSD, the Respondent has been found in violation of 327 IAC 5-12-2(a)(1), Cambridge City's SUO Article V. Section 3. and Part I.B.1. of the Permit.

17.    Part I.A.5. of the Permit requires that flow shall be monitored and recorded by a valid flow-measurement device, not estimated.

18.    Part I.C.1. of the Permit requires that samples and measurement taken as required herein shall be representative of the volume and nature of the monitored discharge.

19.    On August 7, 1997 and August 25, 1997, it was noted in the inspection reports that there was no valid flow measurement device operating at the plant. Therefore, the Respondent was in violation of Part I.A.5. and Part I.C.1. of the Permit.

20.    327 IAC 5-15-9 and 10 state, in part, that the permittee shall record and report the results of monitoring required under 327 IAC 5-2-13, 327 IAC 5-2-14 and 327 IAC 5-2-15.

21.    327 IAC 5-2-13 states, in part, that to assure compliance with permit terms and conditions, all permittees shall monitor, as required in the Permit, the following:

    a.    The mass, concentration, or other measures specified in sections 11 and 11.1 of this rule, for each pollutant specified in the Permit.

    b.    The volume of wastewater flow at monitoring points specified in the Permit, including the final effluent flow from each point source.

    c.    Other parameters and conditions as specifically required in the Permit.

22.    327 IAC 5-2-14 requires, in part, 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 this rule.

23.    327 IAC 5-2-15 states, in part, that permittees shall report to the Commissioner, using Discharge Monitoring Reports (DMRs), the results of any monitoring specified by the Permit, by the 28th day of the following month.

24.    On August 7,1997, it was noted in the inspection report for the Respondent that the data found in the sampling records were not complete. The samples were being taken for only

seven consecutive days of each month. Part I.A. of the Permit provides that samples are to be taken on a daily basis. Therefore, the Respondent is in violation of Part I.C.1. and 327 IAC 5-15-10.

25.    A records review indicates that, to date, the Respondent has not submitted, to IDEM, the required DMRs for October, November and December 1997. The DMRs are due in this office by the 28^th of each month. Therefore, the Respondent is in violation of Part I.C.1. of the permit and 327 IAC 5-15-10.

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

2.    This Agreed Order, and compliance with its terms, shall resolve all issues which have been raised in the Notice of Violation issued by Complainant to the Respondent.

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

        Aletha M. Carr, Case Manager
        Water Enforcement Section
        Office of Enforcement
        Indiana Department of Environmental Management
        P.O. Box 6015
        Indianapolis, Indiana 46206-6015

4.    Respondent is assessed a civil penalty of Forty Thousand Dollars ($40,000). Said penalty amount shall be due and payable to the Environmental Management Special Fund within thirty (30) days of the Effective Date of this Order.

5.    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 4                $1,000 per day for late submittal of the civil penalty.

6.    Stipulated penalties shall be due and payable within thirty (30) days after Respondent receives written notice that the Complainant has determined a stipulated penalty is due. Assessment and payment of stipulated penalties shall not preclude the Complainant from seeking any additional relief against the Respondent for violation of the Agreed Order. In lieu of assessment of any stipulated penalty given above, the Complainant may seek any other remedies or sanctions available by virtue of Respondent's violation of this Agreed Order, or Indiana law, including but not limited to civil penalties pursuant to
    IC 13-30-4-1.

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, IDEM
            100 N. Senate Avenue
            P.O. Box 7060
            Indianapolis, Indiana 46207-7060.

8.    In the event that the civil penalty required by paragraph 4 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 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.    This Agreed Order is not and shall not be interpreted to be a Permit, or a modification of an existing Permit, nor shall it in any way relieve Respondent of its obligation to comply with any applicable federal or state law or rule.

11.    The Complainant does not, by its approval of this Agreed Order, warrant or aver in any manner that the Respondent's compliance with any aspect of this Agreed Order will result in compliance with the provisions of the Clean Water Act or Indiana law. Complainant

agrees that because Respondent's Facility has been closed and substantially all of the Respondent's assets have been sold, Complainant will not seek any further enforcement action or assessment of penalties against Respondent with respect to the Facility beyond those actions and penalties described in this Agreed Order.

12.    In the event that any terms of this 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.

13.    The Respondent shall provide a copy of this Agreed Order, if in force, to current owners and operators of the Facility.

14.    This Agreed Order shall remain in effect until all of the following events have been completed:

    a)    Respondent has completed all of the requirements of paragraph 4, above.

    b)    IDEM issues a resolution of cause or "close out" letter to the Respondent in this cause.

By:         By:
    Mark W. Stanifer, Chief
    Water Enforcement Section
    Office of Enforcement

Date:             Date:

LEGAL RECOMMENDATION:            COUNSEL FOR RESPONDENT:
Department of Environmental Management

By:         By:
    Nancy A. Holloran, Attorney
    Office of Legal Counsel
    Department of Environmental    Printed:
    Management

Date:         Date:

APPROVED AND ADOPTED BY THE INDIANA DEPARTMENT OF ENVIRONMENTAL MANAGEMENT

THIS 22nd DAY OF October , 1998.

                         FOR THE COMMISSIONER:

                         Signed by Felicia R. George
                        Felicia Robinson George
                        Assistant Commissioner of Enforcement

Converted by Andrew Scriven