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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. B-2106
                            )
ELI LILLY and COMPANY            )
                            )
        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.

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 Eli Lilly and Company (hereinafter referred to as "Respondent"), which owns and operates Lilly Technology Center and its North Plant site, located at Morris and Kentucky Avenue in Indianapolis, Indiana. This facility is operated under NPDES permit number IN 0003310 which authorizes discharge limited solely to noncontact cooling water. The permit became effective on June 4, 1986 and expired on April 30, 1991. Respondent applied for permit renewal and is essentially under an administrative extension until the Permit is officially renewed.

3.     Respondent also owns and operates Greenfield Laboratories located on State Highway     40 West in Greenfield, Indiana. This facility is operated under NPDES permit number IN 0002925 which authorizes discharge from a Class B Industrial wastewater treatment plant that serves a research center involved with toxicology, plant science and veterinary science studies. This permit became effective October 1, 1986 and expired on September 29, 1991. Respondent applied for permit renewal and is essentially under an administrative extension until the Permit is officially renewed.
4.    The Indiana Department of Environmental Management ("IDEM") has jurisdiction over the parties and subject matter of this action.

5.     Respondent waives its right to the issuance of a Notice of Violation and to the          settlement period of sixty (60) days as provided for by IC 13-30-3-3.    

6.     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.

7.    A construction permit application was submitted to IDEM and Approval # 8866 was     issued for sanitary sewer construction at Lilly Technology Center North Plant site,     however revisions were made in the project during construction for which no prior     approval was sought from IDEM. Such activity is in violation of 327 IAC 3-2-1.

    Also, a construction permit application #6409 was submitted to IDEM in an "as built"     condition for an aqueous waste neutralization system in Building G409 of Greenfield Laboratories for which no prior approval was sought from IDEM. Such activity is in violation of 327 IAC 3-2-1.

8.    Meetings were held on February 3, 1997 and on June 13, 1997 to discuss and negotiate     the Agreed Order (AO). Respondent sent a letter dated May 19, 1997 to report that another "as built" application for a seepage collection and contamination mitigation project at its Tippecanoe Laboratories would be submitted and to request it be evaluated in conjunction with the proposed AO. The "as built" plans and specifications were received at IDEM on May 21, 1997.

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

10.    In agreeing to the issuance of and entering into this Order, the Respondent neither     admits nor denies liability with respect to the alleged violations.

II. 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.    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 Ten Thousand Dollars ($10,000). 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.

TECHNICAL RECOMMENDATION:        RESPONDENT:
Department of Environmental Management

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 ____________________________, 1997.

                            

                            _signed 8/6/97___
                            John M. Hamilton
                            Commissioner
                            

bcc:    Originator(Dave Knox)
    OLC (Ann Long)
    E-File

cc:     Don Murray, Manager
    Plant Engineering, Utilities, and
    Environmental Control
    Eli Lilly and Company
    Lilly Corporate Center
    Indianapolis, Indiana 46285

    Rebecca O. Goss, Registered Agent
     Eli Lilly and Company
    Lilly Corporate Center
    Indianapolis, Indiana 46285

     Mark R. Lange, Attorney
    Eli Lilly and Company
    Lilly Corporate Center
    Indianapolis, IN 46285             

Converted by Andrew Scriven