Converted WP file ./AO/H-12356

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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,                )
                                )     CAUSE NO. H-12356
            v.                    )
                                )
VERMA-DRENNAN CORPORATION,            )
                                )
MILINCO CHEMICAL COATINGS, INC.,            )
                                )
MADAN VERMA, and                    )
                                )
CONTINENTAL COATINGS, INC.,            )
                                )
            Respondents.                )

NOTICE AND ORDER OF THE
COMMISSIONER OF THE
DEPARTMENT OF ENVIRONMENTAL MANAGEMENT

VIA CERTIFIED MAIL NO.___________ VIA CERTIFIED MAIL NO.___________

To:    Madan Verma                    Madan Verma
    Verma-Drennan Corporation            Continental Coatings, Inc.
    27 Pine Lake Avenue                8010 West Dianne Court
    LaPorte, Indiana 46350            Michigan City, Indiana 46360

VIA CERTIFIED MAIL NO.___________

    Madan Verma
    Milinco Chemical Coatings, Inc.
    8010 West Dianne Court
    Michigan City, Indiana 46360

Following is the Notice and Order of the Commissioner of the Indiana Department of Environmental Management issued against Verma-Drennan Corporation, Milinco Chemical Coatings, Inc., Madan Verma, and Continental Coatings, Inc., for violations of the Indiana Code, the Indiana Environmental Management Act, and the Hazardous Waste Management Rules under 329 IAC 3.1. This Order is issued pursuant to IC 13-30-3-4 and is based on violations found during an investigation conducted by the Office of Solid and Hazardous Waste Management ("OSHWM").

I. FINDINGS OF FACT

    1.    Complainant is the Commissioner (hereinafter referred to as "Complainant") of the Indiana Department of Environmental Management (hereinafter referred to as "IDEM"), a department of the State of Indiana created by IC 13-13-1-1.

    2.    Respondents are the Verma-Drennan Corporation ("Verma-Drennan"), Milinco Chemical Coatings, Inc. ("Milinco"), Continental Coatings, Inc., ("Continental") and Mr. Madan Verma. Currently, Verma-Drennan is the owner of the property located at 800 Chicago Street, Michigan City, LaPorte County, Indiana. Milinco was a company that formerly engaged in business to manufacture solvent/oil- based and water/latex-based paints at 800 Chicago Street, Michigan City, LaPorte County, Indiana. Mr. Verma was the legal owner of the site at which Milinco formerly operated.

    3.    Milinco submitted its initial Notification of Regulated Waste Activity (EPA Form 8700-12) on April 22, 1991 that was subsequently received by EPA Region 5 on May 2, 1991. Milinco notified that it was a large quantity generator ("LQG") of hazardous waste, generating the following waste streams:

        a.    ignitable (D001);

        b.    benzene (D018);

        c.    tetrachloroethylene (D039); and

        d.    spent non-halogenated solvents (F003).

        The notification by Milinco listed Mr. Sivadasan Achary as the President of Milinco and Mr. Verma (also known as Mr. Dan Verma) as the legal owner of the site. Mr. Achary's mailing address was listed as 4704 Church Street, Skokie, Illinois, 60076. Mr. Verma's address was listed as 800 Chicago Street, Michigan City, Indiana, 46360.

    4.    Milinco mailed an amendment to its notification to Sharon J. Kiddon, Waste Management Division, U.S. EPA Region 5 in Chicago, Illinois on July 3, 1991. The amendment noted that Milinco mistakenly identified itself as a LQG on its initial notification (received by EPA Region 5 on May 2, 1991) and desired to be identified as a conditionally-exempt small quantity generator ("CESQG"). Milinco noted that it generated "less than 50 lbs. of waste material per month." Sharon J. Kiddon modified Milinco's hazardous waste activity status to reflect that Milinco's generator status was considered "very small quantity" or CESQG as of July 12, 1991.

    5.    On April 18, 1995, IDEM received a subsequent Notification of Regulated Waste Activity from Mr. Verma, President of Verma-Drennan. The notification, dated April 12, 1995, included several changes from the initial notification made by Mr. Achary of Milinco on April 22, 1991, including:

        a.    the name of the installation was changed from Milinco to Continental;

        b.    the mailing address for Continental (formerly Milinco) was changed from 800 Chicago Street, Michigan City, Indiana, 46360 to 8101 West Dianne Court, Michigan City, Indiana, 46360;

        c.    the contact person was changed from Mr. Sivadasan Achary to Mr. Dan Verma, President of Continental;

        d.    the ownership of the site was modified from Mr. Verma to Verma- Drennan, 27 Pine Lake Avenue, LaPorte, Indiana, 46350; and

        e.    the notification showed Continental to be a small quantity generator ("SQG") of hazardous waste, specifically generating ignitable (D001) and spent non-halogenated solvent (F003) waste streams.

    6.    The site at 800 Chicago Street, Michigan City, Indiana, 46360 was assigned the EPA I.D. No. IND 984 896 779.

    7.    Milinco ceased manufacturing operations at its facility at 800 Chicago Street, Michigan City, LaPorte County, Indiana around March 1994.

    8.    IDEM has jurisdiction over the parties and subject matter of this action.

    9.    Pursuant to IC 13-30-3-3, IDEM issued a Notice of Violation on August 10, 1995 via Certified Mail to:

        Madan Verma                Madan Verma
        Verma-Drennan Corporation        Continental Coatings, Inc.
        27 Pine Lake Avenue            8010 West Dianne Court
        LaPorte, Indiana 46350        Michigan City, Indiana 46360

        Sivadasan Achary
        Milinco Chemical Coatings, Inc.
        4704 Church Street
        Skokie, Illinois 60076

        Respondents received the Notices of Violation on August 14, and September 5 & 15, 1995. Mr. Achary is no longer employed by Milinco.

    10.    Based upon a joint investigation of the facility on September 27, 1994 by the OSHWM of the IDEM, the LaPorte County Emergency Planning Committee, and the Michigan City Fire Department, it was determined that approximately three- hundred and seventy-nine (379) fifty-five (55) gallon drums, two-hundred and ninety-two (292) eight (8) gallon containers, three- hundred and ninety-six (396) one (1) gallon cans, and numerous other containers of various volumetric capacities had been abandoned within the facility since March 1994. At least eleven (11) of the one thousand sixty seven (1,067) aforementioned containers were determined to contain hazardous waste.

    11.    Based upon an investigation of the facility on September 27, October 6, November 2, December 5, 1994 and February 15, 1995, by the OSHWM of the IDEM, the IDEM contends that the following violations were in existence or observed at the time of the inspections:

        a.    Pursuant to 329 IAC 3.1-1-10 and 40 CFR 262.12(a), a generator must not treat, store, dispose of, transport, or offer for transportation, hazardous waste without notifying the Commissioner of IDEM of such activities on forms provided by the Commissioner, and having received an EPA identification number. Based upon the information gathered by IDEM, Respondents failed to notify the EPA and IDEM of their hazardous waste status. Specifically, Respondents failed to notify as a hazardous waste generator and storage facility.

        b.    Pursuant to 329 IAC 3.1-1-10, IC 13-7-4-1(9) (currently IC 13-30-2-1), and 40 CFR 262.34(b), no person may commence or engage in the operation of any hazardous waste facility without having first obtained a permit from the IDEM. Specifically, a generator who accumulates hazardous waste for more than ninety (90) days is an operator of a storage facility and is subject to the requirements of 40 CFR parts 264 and the

permit requirements of 40 CFR part 270 unless it has been granted an extension to the 90-day period. Based upon information gathered by IDEM, Respondents had stored the hazardous waste noted in Findings of Fact No. 10 on-site for greater than ninety (90) days without both obtaining a permit and complying with the applicable requirements of 40 CFR 264.

        c.    Pursuant to 40 CFR 268.50(a)(1), the storage of hazardous wastes restricted from land disposal under Subpart C of 40 CFR 268 is prohibited, unless the generator stores such wastes in tanks or containers on-site solely for the purpose of the accumulation of such quantities of hazardous waste as necessary to facilitate proper recovery, treatment, or disposal and the generator complies with the requirements of 40 CFR 262.34. Based upon the information gathered by IDEM, Respondents stored hazardous wastes restricted from land disposal for greater than ninety (90) days, which is a violation of both 40 CFR 262.34 and 40 CFR 268.50, without a demonstration of a need to store for purposes necessary to facilitate proper recovery, treatment, or disposal.

        d.    Pursuant to 329 IAC 3.1-15-4, an owner or operator of a hazardous waste storage facility must establish financial assurance for closure of the facility. Based upon the information gathered by IDEM, Respondents failed to establish financial assurance for closure of the facility.

        e.    Pursuant to 329 IAC 3.1-15-8, an owner or operator of a hazardous waste storage facility must demonstrate financial responsibility for claims arising from the operation of said facility from sudden and accidental occurrences that cause injury to persons or property. Based upon the information gathered by IDEM, Respondents failed to demonstrate financial responsibility for claims arising from the operations of its facility from sudden and accidental occurrences that cause injury to persons or property.

        f.    Pursuant to 40 CFR 262.34(a)(2), a generator may accumulate hazardous waste on-site for ninety (90) days or less without a permit or without having interim status, provided that the date upon which each period of accumulation begins is clearly marked and visible for inspection on each container. Based upon the information gathered by IDEM, Respondents had not clearly marked or labeled at least eleven (11) hazardous waste containers, out of the approximately one thousand sixty seven (1,067) abandoned containers on-site (noted in Finding of Fact No. 10), stored in Room No. 2 with the start of accumulation date. The aforementioned deficiency had not been corrected as of the February 15, 1995 inspection.

        g.    Pursuant to 40 CFR 262.34(a)(3), a generator may accumulate hazardous waste on-site for ninety (90) days or less without a permit or without having interim status, provided that while being accumulated on-site, each container is clearly marked or labeled with the words "Hazardous Waste." Based upon the information gathered by IDEM, Respondents had not clearly marked or labeled at least ten (10) of the hazardous waste containers, out of the approximately one thousand sixty seven (1,067) abandoned containers on-site (noted in Finding of Fact No. 10), stored in Room No. 2 with the words "Hazardous Waste." The aforementioned deficiency had not been corrected as of the February 15, 1995 inspection.

        h.    Pursuant to 40 CFR 262.11, a person who generates a solid waste, as defined in 40 CFR 261.2, must determine if that waste is a hazardous waste. Based upon the information gathered by IDEM, Respondents failed to make a proper hazardous waste determination for the abandoned hazardous waste noted in Finding of Fact No. 10. The previously cited requirement was reinforced by an October 19, 1994 letter from IDEM to Mr. Dan Verma of Verma-Drennan requesting that hazardous waste determinations be performed in accordance with 40 CFR 262.11. The inspection of February 15, 1995 revealed that the Respondents had not completed this requirement.

        i.    Pursuant to 40 CFR 262.34(a)(4), referencing 40 CFR 265.51(b) and 40 CFR 265.56, and 329 IAC 3.1-8-3, a generator of hazardous waste must, whenever there is a release of hazardous waste or hazardous waste constituents which could threaten human health or the environment, carry out the provisions of its contingency plan and immediately identify the character, exact source, amount, and a real extent of any released materials. Further, this event must be communicated to the Office of Environmental Response of IDEM. Based upon the information gathered by IDEM, Respondents failed to implement their contingency plan and notify the Office of Emergency Response of IDEM upon the release of hazardous waste or hazardous waste constituents into Room Nos. 1, 2, and 5 within the facility.

        j.    Pursuant to IC 13-7-4-1(1), currently IC 13-30-2-1, 40 CFR 265.31, and 40 CFR 265.173(b), as referenced by 40 CFR 262.34(a)(4) and 40 CFR 262.34(a)(1)(i), a container holding hazardous waste must not be opened, handled, or stored in a manner that may rupture the container or cause it to leak. Based upon the information gathered by IDEM, Respondents failed to manage and maintain their containers to prevent rupture and leaks as evidenced by areas within Room Nos. 1, 2, and 5 contaminated with hazardous waste.

        k.    Pursuant to 40 CFR 265.174, as referenced by 40 CFR 262.34(a)(1)(i), owners and operators must inspect areas where containers are stored, at least weekly, looking for leaks and for deterioration caused by corrosion or other factors. Based upon the information gathered by IDEM, Respondents failed to inspect weekly their hazardous waste (D001, F003, and F005) containers stored within Room No. 2 for evidence of leaks, deterioration, or corrosion.

        l.    Pursuant to 40 CFR 265.173(a), as referenced by 40 CFR 262.34(a)(1)(i), a container holding hazardous waste must always be closed during storage, except when it is necessary to add or remove waste. Based upon the information gathered by IDEM, Respondents failed to maintain their two (2) hazardous waste containers (D001, F003, and F005), stored within Room No. 2, in a closed condition.

        m.    Pursuant to 40 CFR 265.35, as referenced by 40 CFR 262.34(a)(4), owners or operators must maintain aisle space to allow the unobstructed movement of personnel, fire protection equipment, spill control equipment, and decontamination equipment to any area of facility operation in an emergency. Based upon the information gathered by IDEM, Respondents failed to maintain adequate aisle space for the abandoned hazardous waste within the facility as listed in Finding of Fact No. 10. It was noted, specifically, that adequate aisle space was not provided for seven (7) hazardous waste (D001, F003, and F005) containers stored within Room No. 2 from the September 27, 1994 inspection until the December 5, 1994 inspection. Adequate aisle space was provided for all abandoned hazardous wastes, as listed in Finding of Fact No. 10, as of the December 5, 1994 inspection.

        n.    Pursuant to 40 CFR 265.32 and 40 CFR 265.34, as referenced by 40 CFR 262.34(a)(4), all generators must be equipped with certain forms of emergency devices that are accessible by all personnel involved in the management of hazardous waste. Based upon the information gathered by IDEM, Respondents failed to equip the facility with immediate access to an alarm or communications device by facility personnel. Specifically, the facility did not have an internal alarm system, telephone or 2-way radio.

        o.    Pursuant to 40 CFR 265.33, as referenced by 40 CFR 262.34(a)(4), all generators must test and maintain all communication or alarm systems, fire protection equipment, and decontamination equipment to ensure its proper operation in time of emergency. Based upon the information gathered by IDEM, Respondents failed to establish testing and

maintenance procedures for all emergency and safety equipment at the facility.

        p.    Pursuant to 40 CFR 265.17(a), as referenced by 40 CFR 262.34(a)(1)(i), a generator must take precautions to prevent accidental ignition or reaction of ignitable or reactive waste. Specifically, "No Smoking" signs must be conspicuously placed wherever there is a hazard from ignitable or reactive waste. Based upon the information gathered by IDEM, Respondents failed to post "No Smoking" signs throughout the facility where ignitable and reactive wastes were stored.

        q.    Pursuant to 40 CFR 265 Subpart D (Contingency Plan and Emergency Procedures), as referenced by 40 CFR 262.34(a)(4), a generator of hazardous waste must comply with the requirements of maintaining a contingency plan and initiating emergency procedures. Based upon the information gathered by IDEM, Respondents failed to comply with the requirements of completing and implementing a contingency plan, including:

            (i).    content of the contingency plan;

            (ii).    distribution of the contingency plan;

            (iii).    designation of an emergency coordinator; and

            (iv).    emergency procedures.

            The previously cited requirement was reinforced by an October 19, 1994, letter from IDEM to Mr. Dan Verma of Verma-Drennan requesting that a contingency plan be completed for the facility and implemented, as necessary, pursuant to 40 CFR 265 Subpart D.

        r.    Pursuant to 40 CFR 265.16, as referenced by 40 CFR 262.34(a)(4), the owner or operator must implement and maintain a personnel training program, for those employees involved in the management of hazardous waste, to ensure that facility personnel are able to respond effectively to emergencies by familiarizing them with emergency procedures, emergency equipment, and emergency systems. Further, records that document such training must be kept at the facility pursuant to 40 CFR 265.16(e). Based upon the information gathered by IDEM, Respondents failed to implement and maintain a personnel training program for those employees involved in the management of hazardous waste.

    12.    Respondent manifested twelve (12) fifty-five (55) gallon drums (660 gallons) of ignitable (D001) hazardous waste off-site to Environmental Services of America ("ESA") in South Bend, Indiana on June 8, 1995.

    13.    Respondent manifested one (1) tanker load (3,465 gallons) of ignitable (D001) hazardous waste off-site to Continental Cement, Inc. in Hannibal, Missouri on February 26, 1996.

    14.    Respondent manifested one (1) tanker load (2,365 gallons) of ignitable (D001) hazardous waste off-site to Continental Cement, Inc. in Hannibal, Missouri on February 27, 1996.

    15.    Respondent relinquished for transport to the Standard Paints & Coatings Company, 8225 Lyndon Avenue, Detroit, Michigan, 48238, the following products on February 28, 1996:

        a.    seventy-eight (78) fifty-five (55) gallon drums of paint;

        b.    ninety-six (96) five (5) gallon pails of paint; and

        c.    three hundred and seventy-six (376) one (1) gallon pails of paint.

    16.    Respondent was provided with Special Waste Certification No. 60119 for the disposal of its solidified acrylic emulsion compound (latex paint) waste on February 28, 1996.

    17.    Respondent removed four thousand (4,000) gallons of its solidified acrylic emulsion compound (latex paint) waste from its facility on March 6, 1996 for disposal at the Twin Bridges Landfill.

    18.    Respondent removed one thousand six hundred and fifty (1,650) gallons of its solidified acrylic emulsion compound (latex paint) waste from its facility on March 12, 1996 for disposal at the Twin Bridges Landfill.

    19.    Respondent submitted a closure plan on April 3, 1996. The plan did not completely address the areas of concern as identified by IDEM.

    20.    Respondent manifested eighteen (18) fifty-five (55) gallon drums (990 gallons) of ignitable (D001) hazardous waste off-site to Pollution Control Industries in East Chicago, Indiana on April 18, 1996.

    21.    Respondent manifested one (1) fifty-five (55) gallon drum (55 gallons) of characteristically lead (D008) hazardous waste off-site to Controlled Waste Division in Menomonee Falls, Wisconsin on April 18, 1996.

    22.    Respondent removed the following amounts of solidified acrylic emulsion compound (latex paint) waste from its facility on May 7, 1996 for disposal at the Twin Bridges Landfill:

        a.    thirteen (13) fifty-five (55) gallon drums; and

        b.    thirty-six (36) five (5) gallon pails.

    23.    Informal settlement conferences were held between Mr. Madan Verma and counsel, and representatives of IDEM on October 19, 1995 and May 6, 1996.

    24.    An inspection by Mr. Scott Ormbsy of the OSHWM of the IDEM on July 5, 1996 revealed that all of the solid, special, and hazardous waste, initiallly identified on September 27, 1994, had been removed from Respondent's facility.

    26.    The Notice of Violation contained an offer to enter into an Agreed Order containing actions required to correct the violations.

    27.    More than sixty (60) days have elapsed since Respondents were offered the opportunity to enter into an Agreed Order.

    28.    The Respondents have not entered into an Agreed Order resolving these violations.

II. ORDER

    1.    Upon the effective date of the Order, Respondents shall complete EPA Form 8700-12, and properly notify IDEM of Respondents' hazardous waste activity and status of ownership.

    2.    Within forty-five (45) days of the effective date of the Order, Respondents shall submit to IDEM for approval a closure plan, pursuant to 40 CFR 264 Subpart G, for the areas within the facility that have been contaminated by releases of hazardous waste. This closure plan shall address, at a minimum, the following rooms identified as containing contamination from releases of hazardous waste:

        a.    Room No. 1;

        b.    Room No. 2; and

        c.    Room No. 5.

    3.    Upon IDEM's approval of the closure plan, referenced in Order No. 2 above, Respondents shall implement the plan as approved, and in accordance with the timeframes contained therein. In the event that Respondents submit three (3) closure plans and such plans are deemed unacceptable by IDEM, then IDEM may modify and approve the closure plan.

    4.    All submittals required by this Commissioner's Order shall be sent to (unless notified otherwise in writing):

        Matthew T. Klein
        Hazardous Waste Section
        Office of Enforcement
        Indiana Department of Environmental Management
        P.O. Box 6015
        Indianapolis, Indiana 46206-6015

    5.    Respondents are assessed a Civil Penalty of $45,375 dollars. Said Penalty amount shall be due and payable to the Environmental Management Special Fund within thirty (30) days of the effective date of this Commissioner's Order.

    6.    The civil penalty is payable by check to the Environmental Management Special Fund. Checks shall include the Cause Number and shall be mailed to:

        Cashier
        Indiana Department of Environmental Management
        100 North Senate Avenue
        P.O. Box 7060
        Indianapolis, Indiana 46206-7060

7. Respondent shall pay additional civil penalties of $1,000 per day for failing to comply with the provisions of this Commissioner's Order. Said penalties shall be payable upon notice by IDEM and shall be payable in accordance with the provisions of Order No. 6.

EFFECTIVE DATE OF ORDER

Pursuant to IC 13-30-3-5, this Order takes effect twenty (20) days following receipt unless you request review of this Order, before the twentieth day after receipt, by filing a written request for review with the Office of Environmental Adjudication, and serving a copy of the request for review upon the Commissioner of the Indiana Department of Environmental Management. Pursuant to IC 4-21.5-3-7, you may request that the Office of Environmental

Adjudication conduct a hearing to review this Order, under IC 4-21.5, in its entirety, or you may limit your request for review to specific findings of fact and/or orders contained in this Order.

Requests for review must be submitted to the Office of Environmental Adjudication and the Commissioner of the Indiana Department of Environmental Management at the following addresses:

Director                    Commissioner
Office of Environmental Adjudication    Indiana Department of Environmental Management
ISTA Building                Indiana Government Center North
150 West Market Street             100 North Senate Avenue
Suite 618                    P.O. Box 6015
Indianapolis, Indiana 46204            Indianapolis, Indiana 46206-6015

Failure to properly submit a request for review, before the twentieth day following
receipt of this Order of the Commissioner, waives your right to administrative review of this Order pursuant to IC 4-21.5-3-7 and your right to judicial review of the Order pursuant to IC 4- 21.5-5-4. The request for review must contain the following information:

A statement of facts demonstrating that:

a. You are the person to whom this Order is specifically directed;

b. You are aggrieved or adversely affected by this Order; or

c. You are entitled to review by law.

The following information should be included in order to expedite review by the Office of Environmental Adjudication:

Identification of the cause number of this Order, the specific findings of fact and/or orders to be reviewed, and the legal basis for your challenge to this Order. In addition, your request for review should include the name, address, and phone number of the entity or individual to whom this Order is specifically directed. If you have procedural or scheduling questions regarding your request for review you may contact the Office of Environmental Adjudication at (317) 232-8591.

DATED AT INDIANAPOLIS, INDIANA,

THIS ________________ DAY OF ___________________ 1997.

_[Signed on December 5, 1997]_____
John M. Hamilton

Commissioner

cc:    LaPorte County Health Department
    LaPorte County Solid Waste Management District
    Mr. Scott Ormsby, Office of Solid and Hazardous Waste Management

Converted by Andrew Scriven