STATE OF INDIANA ) BEFORE THE INDIANA DEPARTMENT OF
COMMISSIONER OF THE DEPARTMENT )
) SS: ENVIRONMENTAL MANAGEMENT
COUNTY OF MARION )
OF ENVIRONMENTAL MANAGEMENT, )
)
Complainant, )
)
v. ) CAUSE NO. B-2343
)
)
HOCKING OIL COMPANY, INC., )
)
Respondent. )
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.
1. Complainant is the Commissioner (hereinafter referred to as "Complainant") of
the Indiana Department of Environmental Management ("IDEM"), a department
of the State of Indiana created by IC 13-13-1-1.
Respondent is the Hocking Oil Company, Inc., which owns and operates an oil
production operation (hereinafter referred to as the "Site") located near County
Road 875 W. at the Hilbert-Shelton Well #2 near Princeton in Gibson County,
Indiana.
3. The 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. Andy G. Hocking, President Ms. Andrea M. Richardson, Resident Agent
Hocking Oil Company, Inc. Hocking Oil Company, Inc.
P.O. Box 162 P.O. Box 162
Mt. Carmel, IL 62863 Mt. Carmel, IL 62863
5. 327 IAC 2-6.1-4 contains the following definitions:
(15) "Spill" means any unexpected, unintended, abnormal, or unapproved
dumping, leakage, drainage, seepage, discharge or other loss of petroleum,
hazardous substances, extremely hazardous substances, or objectionable
substances.
(16) "Spill response"for purposes of this rule means the following:
(A) the spill is contained; and
(B) free material is removed
(17) "Spill report" means an oral report that includes .... the location and time
of the spill; the identification of the substance spilled, the quantity of
substance that has been or may further be spilled, the identification of the
person making the spill report, and what measures have been or will be
undertaken to perform a spill response and any other information that may
be significant to the response action.
6. 327 IAC 2-6.1-7, requires, in part, that any person who operates, controls or
maintains any mode of transportation or facility from which a spill occurs shall,
upon discovery of a reportable spill to the waters of the state, do the following:
(1) Contain the spill, if possible, to prevent additional spilled material from
entering the waters of the state.
(2) Undertake or cause others to undertake activities needed to accomplish a spill
response.
(3) As soon as possible but within two (2) hours of discovery, communicate a spill
report to the Department of Environmental Management, Office of Environmental
Response: Area code 1-888-233-7745 for in state calls (toll free).
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 attibutable 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.
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.
8. IC 13-18-4-5 states, in part, that it is unlawful for a person to throw, run, drain, or
otherwise dispose into any of the streams or waters of this state, or to cause,
permit, or suffer to be thrown, run, drained, allowed to seep, or otherwise
disposed into any waters, any organic or inorganic matter that causes or
contributes to a polluted condition of any waters, as determined by a rule of the
board adopted under section 1 and 3 of this chapter.
9. IC 13-30-2-1 states, in part, that a person may not discharge, emit, cause, allow, or
threaten to discharge, emit, cause, or allow any contaminant ...., either alone or in
combination with contaminants from other sources, into the environment .... in
any form that causes or would cause pollution that violates or would violate rules,
standards, or discharge or emission requirements adopted by the appropriate board
under the environmental management laws.
On June 18, 1998, the Indiana Department of Natural Resources, Division of Oil and Gas, inspected Respondent's oil production and storage facilities and found the containment area at the tank battery to be filled with a mixture of water and crude oil. In a Warning of Noncompliance prepared during the inspection, IDNR requested that Respondent remove and dispose of the oil and fluids from inside the containment area. On June 19, 1998, the IDNR Oil and Gas representative
informed the IDNR Conservation Officer that appropriate action to remove and
dispose of the oil had not been taken.
On June 19, 1998, the IDEM Office of Environmental Response was informed by
the Indiana Department of Natural Resources (IDNR) that there was a potential
release from Respondent's facility of approximately 10 barrels of crude oil to the
White River in Gibson County.
12. On June 20, 1999, a IDNR Conservation Officer inspected Respondent's oil tank
battery site. The area was flooded by area flood waters from the Wabash, White,
and Patoka Rivers. The oil spill was, at that time, still contained within the
containment area of the oil tank battery. The flood waters were rising and
threatened to breach the containment wall.
13. On June 23, 1998, the IDNR Oil and Gas and the Conservation Officer returned to
the site. The flood waters had risen further and were near a crest. The only access
to the tank battery was by motorboat. The flood waters were above the
containment wall. Oil was spilled into the flood waters. An oil sheen was
observed several hundred yards away from the tank site. The oil sheen was traced
back to Respondent's oil tank battery site.
14. Respondent's failure to report the release, contain, and immediately clean-up the
spill constitutes violations of 327 IAC 2-6.1-7.
15. Respondent's discharge of oil into the White River constitutes violation of 327
IAC 2-1-6(a)(1), IC 13-18-4-5 and IC 13-30-2-1.
16. On April 7, 1999, Respondent provided IDEM with its account of clean up,
improvements to the firewall which were completed on July 6, 1998, and
commitment to routine inspection of the facilities to prevent a reoccurrence
of an oil release.
17. In recognition of the settlement reached, Respondent waives any right to
administrative and judicial review of this Agreed 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. Respondent shall comply with all applicable sections of the Indiana Code and the
Indiana Administrative Code referenced in the Findings of Fact of this Agreed
Order.
Within thirty (30) days of the Effective Date of this Agreed Order, Respondent
shall develop and submit to the IDEM, Office of Enforcement, for its approval a
spill control and contingency plan for the Site. The plan shall include provisions
for notification of spills of oil or brine to the IDEM, Office of Environmental
Response and specifically detail steps to be taken for spill prevention,
containment, and clean up. Respondent shall comply within specified time frames
of any IDEM request for additional information or modification of the plan.
IDEM's review of Respondent's spill control and contingency plan shall be solely
as a requirement of settling this action and in no way relieves the Respondent of
the obligation to comply with all applicable rules and statutes. Nothing in this
provision prevents Complainant from exercising its full enforcement authority as
to all permit requirements, rules or statutes. The submittals required by this
paragraph shall be sent to:
Office of Enforcement, Water Section Chief
Indiana Department of Environmental Management
100 N. Senate Avenue
P.O. Box 6015
Indianapolis, Indiana 46206-6015.
4. Respondent is assessed a Civil Penalty of Four Thousand Dollars ($4,000). Said
penalty amount shall be due and payable to the Environmental Management
Special Fund according to the following payment schedule:
Penalty Payment Schedule
Payment #1 $1,000 Within 30 days of the Effective Date
Payment #2 $1,000 Within 120 days of the Effective Date
Payment #3 $1,000 Within 210 days of the Effective Date
Payment #4 $1,000 Within 300 days of the Effective Date
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 #3 $500 per week the spill plan or requested
modified plan is late
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 the
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.
7. Civil and stipulated penalties are payable by check to the Environmental
Management Special Fund. Checks shall include the Cause Number (B-2343) of
this action and shall be mailed to:
IDEM Cashier
100 N. Senate Avenue
P.O. Box 7060
Indianapolis, Indiana 46207-7060.
8. In the event that the civil penalty amount required by paragraph 4 is not paid when
due, Respondent shall pay interest on the unpaid, overdue balance at the rate
established by IC 24-4.6-1-101. The interest shall continue to accrue until the
installment payments or 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. 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 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.
11. 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 and Complainant has issued a close-out letter to Respondent.
By: _________________________ By: _________________________
Mark W. Stanifer, Chief Andy G. Hocking, President
Water Enforcement Section
Office of Enforcement Date: _______________
Department of Environmental
Management
Date: _______________
COUNSEL FOR COMPLAINANT COUNSEL FOR RESPONDENT
By: _________________________ By: _________________________
Nancy A. 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 5/13/99_______
Felicia Robinson George
Assistant Commissioner of Enforcement
Converted by Andrew Scriven