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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. H-13544
                            )
QUEMETCO, INC.                    )    
                            )
        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. Pursuant to IC 13-30-3-3, entry into the terms of this Agreed Order does not constitute an admission of any violation contained herein.

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 Quemetco, Inc., (hereinafter referred to as "Respondent"), a company doing business at 7870 West Morris Street, in Indianapolis, Indiana.

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

    4.    Pursuant to IC 13-30-3-3, IDEM issued a Notice of Violation via Certified Mail to:

            Mr. Robert E. Finn, President    C.T. Corporation System
            Quemetco, Inc.             Registered Agent for         
            2777 Stemmons Freeway        Quemetco, Inc.
            Suite 1800                One North Capitol Avenue
            Dallas, Texas 75207            Indianapolis, Indiana 46204.
                            
    5.    Respondent was inspected on June 4 and July 3, 1997 by Mr. John Naddy, Ms. Theresa Pichtel, and Ms. Christina Halloran, of the Office of Solid and Hazardous Waste Management (OSHWM) of IDEM. Based on these investigations, IDEM contends that the following violations were in existence or observed at the time of the inspections.

             a.    Pursuant to 40 CFR 264.75, 329 IAC 3.1-9, and Permit Condition II.K.3, the owner or operator of a hazardous waste facility must submit a Biennial Report that includes information on all hazardous waste received by the facility. Based on information gathered by IDEM, the Biennial Report did not describe all lead-bearing waste generated on-site. In a letter submitted to IDEM on December 12, 1997, Respondent agreed to estimate the amount of waste generated on-site and reclaimed, and to include this information in all future Biennial Reports.

        b.             Pursuant to 40 CFR 264.73(a) & (b), 329 IAC 3.1-9, and Permit Condition II.K.1, the owner or operator of a hazardous waste facility must keep a written record of the location and quantity of all hazardous waste at the facility. Based on information gathered by IDEM, Respondent failed to maintain a written operating record at the facility that contained the required information or allowed individual shipments of waste to be tracked. In letters submitted to IDEM on December 12, 1997 and November 17, 1998, Respondent indicated that the facility's operating record will be modified to help IDEM's inspectors determine the facility's degree of regulatory compliance.

        c.    Pursuant to 40 CFR 268.50(a)(2)(i), an owner or operator of a treatment, storage, or disposal facility must make sure each container is marked with an accumulation start date. Based on information gathered by IDEM, containers were staged and stored in various locations around the facility without having been marked with accumulation start dates. In a letter
            submitted to IDEM on December 12, 1997, Respondent indicated that although they do not feel this regulation applies to wastes being staged

            (rather than stored), they will now label all containerized hazardous waste that is not processed within a day of being unloaded.

        d.    Pursuant to 40 CFR 262.34(a), a generator may accumulate hazardous waste on-site for 90 days or less without a permit provided that the containers are labeled with the words "Hazardous Waste" and with accumulation start dates. Based on information gathered by IDEM, Respondent failed to properly label the following containers:

            1)    Two 55-gallon containers of lead characteristic or assumed lead characteristic hazardous waste located in the maintenance building.

            2)    One 2.3-cubic yard cardboard gaylord box located in the finished product storage area. This box was used to collect spent cardboard.
            
        e.    Pursuant to 40 CFR 265.31, facilities must be maintained and operated to minimize the possibility of a fire, explosion, or any unplanned sudden or non-sudden release of a hazardous waste to the air, soil, or surface water, which could threaten human health or the environment. Based on information gathered by IDEM, Respondent failed to properly manage a hazardous waste container to minimize a release to the environment. One 20-cubic yard roll-off container of used refractory brick was leaking a green liquid. In a letter submitted to IDEM on December 12, 1997, Respondent said that they had modified procedures to require that waste be added or removed from a roll-off only when the roll-off is under a roof.

        f.    Pursuant to 40 CFR 265.35 and Permit Condition II. H.- 4, the owner or operator of a hazardous waste facility must maintain enough aisle space to allow the unobstructed movement of personnel, fire protection, spill control, and decontamination equipment. Based on information gathered by IDEM, Respondent failed to provide the required aisle space along the north wall of the finished goods storage area.

        g.    Pursuant to 40 CFR 264.175(b) and Permit Condition III. F, container storage areas must be equipped with containment systems that are free of cracks or gaps, and sufficiently impervious to contain leaks, spills, or precipitation. Based on information gathered by IDEM, Respondent failed to properly maintain the hazardous waste containment trench free of cracks and gaps. In a December 12, 1997 letter, Respondent indicated they were seeking IDEM's RCRA Permitting Section approval to use an new material, possibly less prone to cracking, to maintain the trench. On June 15, 1998, IDEM approved the alternative trench coating material.

        h.    Pursuant to 40 CFR 262.34(a)(1)(i) referencing 40 CFR 265.173(a), Permit Condition III.E.1(a), and Permit Attachment F-3(5), a container holding hazardous waste must always be closed during storage, unless necessary to add or remove waste. Based on information gathered by IDEM, the following containers were not closed:
        
            1)     One 55-gallon steel container half-full of liquids.

            2)    Nineteen 55-gallon steel containers of lead acid battery plates.

            3)    Three 55-gallon containers of gray powder.

            4)    One 55-gallon container of white and orange material.

            5)    One 55-gallon container of rags.

            6)    One 55-gallon container of cassettes.

            7)    One 1-cubic yard tote located in the finished product warehouse, and used to collect cardboard.

            8)    One 2.3 cubic yard cardboard gaylord box located in the finished product storage area, used to collect spent cardboard.

            9)    One 55-gallon metal container located in the finished product storage area. The container held one spent pasting belt, and was labeled with the words "Yuma Exide." Facility personnel closed this container during the inspection.

            10)     Two 55-gallon containers of lead characteristic or assumed lead characteristic hazardous waste, located in the maintenance building.
                
            11)    One nickel-cadmium battery satellite accumulation container, located next to the scale office. This violation was observed and corrected during both the June 4, 1997 and July 3, 1997 inspection.

        i.    Pursuant to 40 CFR 265.173(b), 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 on information gathered by IDEM, Respondent failed to manage the following containers properly:

                  Two 55-gallon containers of lead characteristic or assumed lead characteristic hazardous waste located in the maintenance building The containers were overfilled. In a letter submitted to IDEM on December 12, 1997, Respondent indicated that they had ordered new containers with attached lids, which would prevent overfilling.         
                  One 2.3-cubic yard cardboard gaylord box located in the finished product storage area, being used to collect spent cardboard. The container was overfilled.     

                  One 20-cubic yard roll-off container that was leaking a green liquid.

        j.    Pursuant to 40 CFR 265.174, owners and operators of hazardous waste facilities must conduct weekly inspections of container storage areas and containment areas. Based on information gathered by IDEM, Respondent failed to conduct weekly inspections of the two 55-gallon containers used to collect hazardous waste in the maintenance building, and containers stored along the north side of the finished goods area. Respondent contends that the containers located along the north side of the finished goods area were being staged rather than stored.

        6.    On November 3, 1997, April 21, 1998, and November 19, 1998, the parties met to discuss the above allegations.
        
    7.    In recognition of the settlement reached, Respondent waives any right to administrative and judicial review of this Agreed Order.

II. ORDER

    1.    This Agreed Order shall be effective ("effective date") when it is approved by the Complainant or his delegate, and the Respondent has received written notification of its approval. This Agreed Order shall have no force or effect until the effective date.

    2.    In the future, Respondent shall ensure that Biennial Reports include information on all hazardous wastes generated on-site.

         3.    Within thirty (30) days of the effective date of the Order, Respondent shall maintain a written record of the location and quantity of all hazardous waste at the facility, in accordance with 40 CFR 264.73(a) & (b), 329 IAC 3.1-9, and Permit Condition II.K.1. Examples of items the operating record should contain are as follows:


        a.    Manifest numbers for all containers of hazardous waste that arrive at the facility.

        b.    Information on the origin of each individual container of manifested hazardous waste, and the date the container arrived at the facility.

        c.    Information on the location of each individual container of manifested hazardous waste, such as in the Permitted Storage Area, a Staging Area, or Bin 10.

    4.    Upon the effective date of the Order, Respondent shall ensure that all hazardous waste containers, including pallets of intact batteries (one label per pallet), are marked with accumulation start dates and with the words "Hazardous Waste."

    5.    In the future, Respondent shall ensure that rain water does not come in contact with any open hazardous waste containers.

         6.     Upon the effective date of the Order, Respondent shall ensure that all containers of hazardous waste - whether generated on-site or off-site - are stored closed, except when necessary to add or remove waste.
    
    7.    Upon the effective date of the Order, Respondent shall ensure that containers are handled in a manner which prevents rupture or leaks.

         8.    Upon the effective date of the Order, Respondent shall ensure that all containers are provided with sufficient aisle space to allow for inspections and for the movement of emergency equipment and personnel.

    9.    Upon the effective date of the Order, Respondent shall conduct the required inspections of less-than-90-day hazardous waste container storage areas (in accordance with all applicable rules) and permitted storage areas (in accordance with permit requirements.)
    
    10.    Upon the effective date of the Order, Respondent shall ensure that off-site waste received at the facility is processed or stored within the time required by law or regulation.

    11.    Upon the effective date of the Order, Respondent shall ensure that non-lead bearing waste is not burned in bin #10. Within thirty (30) days of the effective date of the Order, provide to IDEM a written description of how Respondent intends to make sure that only lead-bearing waste is burned.

    12.              All submissions required by this Agreed Order, unless notified otherwise in
        writing, shall be sent to:
    
        Aubrey N. Sherif, Environmental Manager
        Office of Enforcement
        Indiana Department of Environmental Management
        100 N. Senate Avenue
        P. O. Box 6015
        Indianapolis, IN 46206-6015
        
        IDEM agrees to send all correspondence related to this Agreed Order to:
    
        Mr. Robert Kelsey
        Environmental Health & Safety Compliance Manager
        Quemetco, Inc.        
        7870 West Morris street
        Indianapolis, Indiana 46231

    13.    Respondent is assessed a civil penalty of nine thousand dollars ($9,000). 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.

    14.    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
            IDEM
            100 N. Senate Avenue
            P. O. Box 7060
            Indianapolis, IN 46207-7060

    15.    In the event that the civil penalty required by paragraph 13 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.

    16.    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.

    17.    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.

    18.    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.

    19.    This Agreed Order shall remain in effect until IDEM issues a Resolution of Cause letter to Respondent. This Agreed Order resolves all violations observed during the June 4 and July 3, 1997 inspections.


TECHNICAL RECOMMENDATION:        RESPONDENT:
Department of Environmental Management

By: _________________________            By: _________________________
Nancy L. Johnston, Chief                 
Hazardous Waste                    Printed:
Office of Enforcement                
                            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 ____________________, 1999.

                            For the Commissioner:

                            Signed February 3, 1999
                            Felicia Robinson George
                            Assistant Commissioner
                            Office of Enforcement

Converted by Andrew Scriven