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-13721                     v.            )
                            )
RECLAIMED ENERGY 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. Pursuant to IC 13-30-3-3, entry into this agreement does not constitute an admission of any violation contained herein.

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

    2.    Respondent is Reclaimed Energy Company, Inc. (hereinafter referred to as "Respondent"), a company doing business at 1500 Western Avenue, Connersville, Indiana.

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

         4.    Respondent submitted notification as a treatment, storage, and disposal facility of hazardous waste to the U.S. EPA and was assigned the I.D. # IND 000 780 403.

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

         Mr. R. J. Roembke Jr., President    
        Reclaimed Energy Company, Inc.    
        P.O. Box 1111            
        Indianapolis, Indiana 46206

    6.    On October 8, 1998, a team from the Office of Solid and Hazardous Waste Management (OSHWM) of IDEM, conducted a technical inspection of the facility. IDEM contends that the following violations were in existence or observed at the time of the inspection:

             Pursuant to Permit Condition V. B. and 40 CFR 264.1050(d) , each piece of equipment subject to Subpart BB emission standards for equipment leaks shall be marked in such a manner that it can be distinguished readily from other pieces of equipment. Based on information gathered by IDEM, several pieces of equipment subject to this requirement (including valves, flanges and connectors, pumps, etc.) in the dispensing area, bulk liquid hazardous waste storage tank area, and thin film evaporator area, lacked marking that would distinguish those Subpart BB regulated components from other equipment. Some valves had numbered tags, but were not marked in such a way to make them distinguishable from other equipment without reference to schematic diagrams that are kept elsewhere at the facility.

             Pursuant to 40 CFR 265.1085(c)(4)(ii) referencing 265.1090(b), an owner/operator must perform an initial inspection of tanks subject to air emission standards and record the inspection results in the facility operating log. Level 1 tanks must be inspected to check for defects. Defects include broken, cracked or otherwise damaged seals and gaskets on closure devices. Based on information gathered by IDEM, Respondent could not demonstrate that an initial inspection had been conducted. There was no inspection record for the initial inspection. Seals and gaskets on the hatches of tanks 36, 34, and 32 were broken, cracked, or otherwise damaged.

             Pursuant to 40 CFR 265.1085(d)(3) referencing 265.1085(g), closure devices on Level 2 tanks must be operated with no detectable emissions (i.e. less than 500 ppmv using Method 21). Based on information gathered by IDEM, the hatches on tanks 39 and 40 appeared to have detectable emissions. Emissions of approximately 800 ppmv were recorded during the inspection.

             Pursuant to 40 CFR 265.1088(b)(3), for each closed vent system that includes a by-pass device, the device must be equipped with either a flow indicator or a seal and locking device. Based on information gathered by IDEM, the by-pass for the catalytic oxidizer did not have a flow indicator or a seal and locking device although the oxidizer operating record does record the time and dates when flow occurs in the by-pass by recording the by-pass valve position.

             Pursuant to 40 CFR 264.191(b), the tank integrity assessment must determine that the tank system is adequately designed and has sufficient structural strength and compatibility with the waste(s) to be stored or treated, to ensure that it will not collapse, rupture, or fail. Based on information gathered by IDEM, the catwalk between tanks 32-39 is permanently welded or fixed to the tanks. The load bearing connecting points are attached to the "lifting plugs" of the tanks with stabilizing tack welds on the tanks and without supporting legs on the ground. IDEM is concerned that the load, and the pressure built up between the tanks, resulting from the tank shell expansions caused by ambient temperature variations, may transfer forces between the tanks which may result in tank shell failure or rupture. Tank design standards do not consider these external forces onto the tank shells. Also, the tank integrity assessment of 3/23/1992 does not address this issue.

    7.    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.    Within thirty (30) days of the effective date of the Order, Respondent shall mark all equipment subject to Subpart BB emissions standards in such a manner that it can be readily distinguished from other equipment. To satisfy the intent of this requirement, such marking should be on or near each regulated component or piece of equipment, and should make it distinguishable in some fashion as subject to the Subpart BB standards.

         3.    Within thirty (30) days of the effective date of the Order, Respondent shall conduct the required initial inspection of all tanks subject to air emission standards and record the inspection result in the facility's operating log. Any defects noted during this inspection must be repaired in accordance with 40 CFR 265.1085(k). Submit documentation for the inspection and any repairs to IDEM for review.

         4.    Within thirty (30) days of the effective date of the Order, Respondent shall conduct the required inspections on the closure devices on Level 2 tanks. Repair

each defect noted during the inspection in accordance with 40 CFR 265.1085(k). Submit documentation of the inspection and any repairs to IDEM for review.
    
    5.    Within thirty (30) days of the effective date of the Order, Respondent shall provide the bypass for the catalytic converter with a flow indicator or a seal and locking device pursuant to 40 CFR 265.1088(b)(3).

    6.    Within thirty (30) days of the effective date of the Order, Respondent shall provide free standing support for the catwalk between tanks 32 through 39 and disconnect it from the tank shells, or provide engineering calculations which demonstrate that these forces do not affect the integrity of the tanks pursuant to 40 CFR 264.191.    

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

        Richard R. Milton, Case Manager
        Office of Enforcement            
        Indiana Department of Environmental Management
        P.O. Box 6015
        Indianapolis, Indiana 46206-6015

    8.    All submittals required by this Agreed Order shall contain the following certification:

        "I certify under penalty of law that this document and all attachments were prepared under my direction or supervision in accordance with a system designed to assure that qualified personnel properly gather and evaluate the information submitted. Based on my inquiry of the person or persons who manage the system, or those persons directly responsible for gathering the information, the information submitted is, to be the best of my knowledge and belief, true, accurate, and complete. I am aware that there are significant penalties for submitting false information, including the possibility of fines and imprisonment for knowing violations."
    
    9.     Respondent is assessed a civil penalty of $9,350. Said penalty amount shall be due and payable by check to the Environmental Management Fund within thirty (30) days of the effective date of this Agreed Order. The check shall include the Cause Number and be mailed to:

        Cashier
        Indiana Department of Environmental Management
        100 N. Senate, P.O. Box 7060
        Indianapolis, Indiana 46207-7060
    

    10.    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
             Failure to comply                 
            with Orders #2 through #6        $1,000/day

    11.    Stipulated penalties shall be due and payable within thirty (30) days after Respondent receives written notice that the Commissioner 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 13-30-4-1.

    12.    Stipulated penalties are payable by check to the Environmental Management Special Fund. Checks shall include the Cause Number and shall be mailed to:

             Cashier
            IDEM
             100 N. Senate Avenue
            P.O. Box 7060
            Indianapolis, Indiana 46207-7060
    
    13.    In the event that the civil penalty required in paragraph 9 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.
            
    14.    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 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 Order.

    15.    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.

    16.    The Respondent shall provide a copy of this Order, if in force, to any      subsequent owners or successors before ownership rights are transferred.     

        Respondent shall by contract require that all contractors, firms, and other      persons acting for it comply with the terms of this Order.

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

TECHNICAL RECOMMENDATION:        RESPONDENT:
Department of Environmental Management

By:                  By:     
    Nancy L. Johnston, Chief        
    Hazardous Waste Section
    Office of Enforcement

                            
Date:                  Date:    

LEGAL RECOMMENDATION:            COUNSEL FOR RESPONDENT:
Department of Environmental Management

By:                  By:     
    Office of Legal Counsel

    
Date:                  Date:     
        

APPROVED AND ADOPTED BY THE INDIANA DEPARTMENT OF ENVIRONMENTAL MANAGEMENT

THIS DAY OF , 199 .

                        FOR THE COMMISSIONER:

                         adopted and signed 6-21-99
                        Felicia Robinson George
                         Assistant Commissioner of Enforcement

Converted by Andrew Scriven