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-2274
                            )
CROSSMANN COMMUNITIES, INC.        )
                            )
        Respondent.                )

2.    Respondent is Crossmann Communities, Inc. (hereinafter referred to as "Respondent"), which owns and operates a land development company, having a main business office located at 9202 North Meridian Street, Suite 300 in Indianapolis, Indiana. Respondent constructed a new residential housing development at Brixton Subdivision near Pittsboro, 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 on July 2, 1998 via Certified Mail to:     
            Mr. John Scheumann, C.E.O.
            Crossmann Communities, Inc.
            9202 North Meridian Street
            Suite 300
            Indianapolis, IN 46260

5.     327 IAC 3-2-1 states, in substance, 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.

     Respondent violated 327 IAC 3-2-1 by constructing a sanitary sewer system at Brixton Subdivision east of Pittsboro on the north side of State Route 136 without first obtaining a construction permit approval from IDEM. The constructed sewer system was meant to be eventually connected to the City of Pittsboro sanitary sewer system. At the time of construction, the City of Pittsboro was under a Sewer Ban issued by IDEM.

     7.    At a meeting on December 22, 1997 to discuss Respondent's sanitary sewer system at Brixton, Respondent acknowledged that it had commenced construction without a valid construction permit and stated that construction permit applications would be submitted to IDEM for any and all future development sites.

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

2.    The Respondent shall not commence any modification or new construction of a sanitary sewer or other wastewater treatment installation until the issuance of a valid construction permit by IDEM.     

3.    Within thirty (30) days of the Effective Date of this Agreed Order, Respondent shall     submit a written statement to IDEM to certify that no construction project as described     in Paragraph 2 will be initiated without a valid construction permit, nor will any work under an existing construction permit be revised without prior approval from IDEM.

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

                Chief, Water Section
                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 Twenty Thousand Dollars ($20,000). Said penalty amount shall be due and payable to the Environmental Management Special Fund within thirty (30) days of the Effective Date of this 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 3                $2,000 per week certification statement is                             submitted late.

7.    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 IC 13-30-4 .

8.    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

9.    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.

10.    This Agreed Order shall apply to and be binding upon the Respondent, its successors, 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.

11.    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.

12.    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.

13.    This Agreed Order shall remain in effect until IDEM issues a Resolution of Cause letter to Respondent.

14.    This Agreed Order constitutes full settlement of all matters contained herein.

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    Printed:___________________________

Date: _______________                Date: _______________

APPROVED AND ADOPTED BY THE INDIANA DEPARTMENT OF ENVIRONMENTAL MANAGEMENT THIS ________________ DAY OF ____________________________, 1998.

                            For the Commissioner:                         

                            Signed 3/15/99
                            Felicia Robinson George
                            Assistant Commissioner of Enforcement

Converted by Andrew Scriven