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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-1667    
LAKELAND LAGOON SEWER             )
CORPORATION                    )
                            )
            Respondent.            )

NOTICE AND ORDER OF THE

COMMISSIONER OF THE

DEPARTMENT OF ENVIRONMENTAL MANAGEMENT

    VIA CERTIFIED MAIL                
    _____________________

TO:    Lakeland Lagoon Sewer Corporation
    c/o: Mr. Matt Eve, President
    1504 Pirtle Drive
    Georgetown, Indiana 47122

    Following is the Notice and Order of the Commissioner of the Indiana Department of Environmental Management (hereinafter referred to as "IDEM") issued to Lakeland Lagoon Sewer Corporation (hereinafter referred to as "Respondent"). This Order is issued pursuant to Indiana Code (IC) 13-30-3-4, IC 13-30-3-10 and IC 4-21.5-3-6 and is based on violations found during investigations conducted by the Office of Water Management and the Office of Enforcement of IDEM.

             I.    FINDINGS OF FACT AND VIOLATION

1.    Respondent owns and operates the wastewater treatment plant (WWTP), at the Lakeland Estates Subdivision, located in the southeast quadrant of the intersection of I-64 and S.R. 62, west of New Albany, Indiana. Construction of a WWTP at Lakeland was approved by the Stream Pollution Control Board of the State of Indiana on August 15, 1967. A condition of that approval was that the owner of the WWTP would incorporate into any governmental district or municipal facility that might be formed to handle sewage disposal problems in the area of the Lakeland development. The WWTP is authorized under NPDES Permit No. IN0044041 (the "Permit") to discharge into Georgetown Creek to Indian Creek to the Ohio River, which are waters of the state.

2.    The area now served by the Lakeland WWTP is within a six (6) mile radius of the corporate limits of Georgetown, Indiana. Georgetown has completed improvements to its sewage treatment system in part with state and EPA grant funding that required Georgetown to extend sewage treatment service to Lakeland.

3.    Lakeland petitioned the Indiana Utility Regulatory Commission (IURC) for approvals needed to connect with Georgetown. However, Lakeland refused to connect to the Georgetown system at the rate set by Georgetown and filed a lawsuit through the IURC challenging that rate. The IURC ruled that Lakeland did have to pay, but at a rate which is lower than the rate Georgetown requested.

4.    Georgetown appealed the IURC's ruling, on the basis that connecting Lakeland at the lower rate would require Georgetown to operate the Lakeland sewer system at a loss, and also cause Georgetown to violate EPA's user charge regulations. That appeal is currently pending with the Court of Appeals.

5.    Because of the above disputes, Lakeland has not connected to the Georgetown sewage      treatment system.
            
6.    IDEM's investigations disclose that Respondent has been discharging untreated wastewater to the waters of the state and has in other ways violated the provisions of the Indiana Code (IC), the Indiana Administrative Code (IAC), and the Permit, as specified in the following paragraphs.

7.    327 IAC 5-2-8, states in substance, that the following conditions apply to all NPDES permits and shall be incorporated into the permits either expressly or by reference.

    A.    A permittee shall comply with all terms and conditions of its NPDES permit; any permittee non-compliance constitutes a violation of the Clean Water Act (CWA) and the Environmental Management Act (EMA) and is grounds for enforcement action;

    B.    the permittee shall take all reasonable steps to minimize or correct any adverse impact on the environment resulting from noncompliance with the permit;

    C.    the permittee shall at all times maintain in good working order and efficiently operate all facilities and systems (and related appurtenances) for collection and treatment which are necessary for achieving compliance with the terms and conditions of the permit;
    
    D.    the permittee shall comply with monitoring, recording, and reporting requirements established in accordance with 327 IAC 5-2-13, 327 IAC 5-2-14, and 327 IAC 5- 2-15.

8.    327 IAC 2-1-6 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 attributable 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, 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;

9.    IC 13-7-4-1 (now IC 13-30-2-1) states, in substance, that no person may discharge, emit, cause, allow, or threaten to discharge, emit, cause, or allow any contaminant or waste including any noxious odor, either alone or in combination with contaminants from other sources, into the environment or into any publicly owned treatment works in any form which causes or would cause pollution which violates or would violate rules, standards, or discharge or emission requirements adopted by the appropriate board pursuant to this article.


10.    327 IAC 5-2-2 states that any discharge of pollutants into the waters of the state as a point source discharge, except for exclusions made in 327 IAC 5-2-4, is prohibited unless in conformity with a valid NPDES permit obtained prior to the discharge.

11.    On January 25, 1994, April 28, 1994, and March 6, 1997, representatives from IDEM found that Respondent's WWTP, had and continues to discharge sludge into the receiving stream, in violation of IC 13-30-2-1, 327 IAC 2-1-6(a)(1) and the Permit.

12.    On January 25, 1994, April 28, 1994, and March 6, 1997, representatives from IDEM observed discharge from a broken effluent line from Respondent's WWTP going into the receiving stream, in violation of 327 IAC 5-2-2.

13.    On January 25, 1994, April 28, 1994, and March 6, 1997, representatives from IDEM inspected the WWTP and noted multiple operational problems including no aeration, broken influent and effluent lines, excessive sludge in the chlorine contact tank and clarifier, raw sewage bypassing the treatment plant, and unavailable Discharge Monitoring Reports (DMRs) and Monthly Reports of Operation (MROs), all in violation of 327 IAC 5-2-8 and the Permit.

14.    On March 6, 1996, and March 6, 1997, follow-up inspections were conducted by IDEM staff. On both these occasions the inspector observed a discharge of sludge from the WWTP into the polishing pond as a result of severe sludge build-up in the WWTP, minimal operational or maintenance servicing of the WWTP, and severe erosion under the package plant creating a threat of it sliding into the ravine below. Each of these conditions pose a serious threat of pollution to the waters of the state, a threat to public health, and violate the Permit.

15.    A phone conference was held on March 18, 1996, between IDEM representatives and Respondent. During this conference Respondent agreed that serious problems existed and agreed to correct the above noted deficiencies. Respondent stated that it was in the process of trying to negotiate terms for connecting onto the Georgetown collection system, but understood that problems with the WWTP needed to be addressed immediately in order to resolve the current wastewater treatment deficiencies.

16.    327 IAC 2-4-1 and 327 IAC 2-4-4 state, in substance, that every person that operates a wastewater treatment plant or discharges wastewater to waters of the state of Indiana shall submit to the Commissioner MROs, and that all reports from wastewater discharges must be prepared by a certified operator, and submitted prior to the 28th day of the following month.
17.    327 IAC 5-2-15 states, in substance, that permittees shall report to the commissioner, using DMRs, the results of all monitoring required by the permit.

18.    Respondent has been late in submitting DMRs and/or MROs seventeen (17) times during the period between May 1994 to May 1996, and has failed to submit DMRs and/or MROs eleven (11) times during the period between January 1994 and December 1995, in violation of 327 IAC 5-2-8, 327 IAC 2-4-1, 327 IAC 2-4-4, 327 IAC 5-2-15, and the Permit.

19.    During inspections conducted on January 25, 1994, April 28, 1994, and March 6, 1997, poor operation and maintenance (O&M) of the sewage treatment plant (STP) was documented on inspection reports. Each of the above noted inspection reports showed almost all "unsatisfactory" findings at the STP, in violation of the Permit and 327 IAC 5- 2-8. O&M deficiencies noted at the above inspections included, but were not limited to:

        a.    no flow meter and recorder;

        b.    sludge in chlorine contact tank;

        c.    final clarifier very murky with floating sludge clumps;

        d.    septic surge tank;

        e.    no use of the sludge digester; and

        f.    records not available at the time of inspections.

20.    On July 27, 1994, a Notice of Violation was issued, pursuant to IC 13-7-11-2 (now 13- 30-3-3), to the Respondent for the above-cited violations occuring prior to that date. As noted above, Lakeland has continued to have the same types of chronic violations since the issuance of that Notice.

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

22.    More than sixty (60) days have elapsed since Respondent was offered the opportunity to enter into an Agreed Order.

23.    The Respondent has not entered into an Agreed Order resolving the violations.


                    
II.                       ORDER


1.    Respondent shall bring the Lakeland sewage treatment facility and the operation thereof into compliance with the requirements of the Permit, 327 IAC 2-1-6, 327 IAC 2-4-1, 327 IAC 2-4-4, 327 IAC 5-2-2, 327 IAC 5-2-8, and 327 IAC 5-2-15.

2.    Within seven (7) days Respondent shall submit to IDEM for its approval a Compliance Plan which addresses the deficiencies and violations noted herein and contains milestone dates for expeditious completion of actions needed to return Respondent to compliance. Respondent, upon written notification of approval by IDEM, shall immediately implement the approved plan, according to the dates for completion of the schedule. The Compliance Plan shall include, but not be limited to:

        a.    submittal of an Operation and Maintenance Manual;

        b.    submittal of a short-term sludge management plan;

        c.    submittal of a long-term sludge management plan which includes the disposal of sludge from the lagoon below the plant;

        d.    installation of an approved chlorination system;

        e.    installation of an approved flow monitoring device;

        f.    methods to assure timely submittal of Discharge Monitoring Reports and Monthly Reports of Operation; and

        g.    methods of assuring compliance with the effluent limitations contained in             Respondent's Permit.

3.    Within thirty (30) days, Respondent shall submit for IDEM's approval a comprehensive plan to eliminate all sources of infiltration and inflow (I/I) into the sewage treatment plant collection system, as well as a map of the collection system. Within thirty (30) days of IDEM's approval, Respondent shall implement the plan.

4.    Respondent shall be on a sewer connection ban pursuant to 327 IAC 4-1-4 and may not connect, or allow connection, of any new sources of flow to the Lakeland sewage

treatment facility until Respondent has complied with all terms of this Order, and IDEM issues a letter specifically allowing such connections.

5.    Respondent shall immediately submit copies of all Discharge Monitoring Reports and/or Monthly Reports of Operation that have not previously been submitted to IDEM.

6.    Respondent shall immediately provide documentation to IDEM showing that Respondent employs the services of a certified wastewater treatment operator.

7.    If Respondent connects to the Georgetown collection system at anytime prior to completing compliance with the requirements and prohibitions of paragraphs 1. through 6. of this Order, including completion of all of the actions delineated in its approved Compliance Plan, Respondent shall immediately notify IDEM with evidence of such connection. Upon IDEM's notification that Respondent has submitted satisfactory proof of connection to the Georgetown sewer system, Respondent shall be relieved of all of the then remaining requirements of Paragraphs 1. through 6. of this Order, except as stated in Paragraph 8., during the period of such connection. However, nothing in this paragraph relieves Respondent from the obligation to timely comply with the terms of this Order.

8.    If Respondent connects to the Georgetown collection system at any time prior to completing compliance with the requirement of paragraph 2.c. of this Order, Respondent shall submit, within thirty (30) days of its submission of proof of connection to IDEM, a long-term sludge management plan which includes the disposal of sludge from the Lakeland sewage treatment facility and the lagoon below the dam at the lake. Upon approval by IDEM, Respondent shall implement the approved plan.

9.    Unless IDEM otherwise notifies Respondent in writing, all submittals required by this Order shall be sent to:

                Steven M. Judith, Senior Environmental Manager
                Water Enforcement Section
                Office of Enforcement
                Indiana Department of Environmental Management
                P.O. Box 6015
                Indianapolis, Indiana 46206-6015

10.    The Respondent shall pay a civil penalty of One Hundred Ten Thousand Two Hundred Fifty Dollars ($110,250). This penalty shall be remitted in the form of a Cashier's Check or Money Order to the Department of Environmental Management within thirty (30) days.

Checks shall be made payable to the Environmental Management Special Fund, with the Cause Number indicated on the check and mailed to:
    
                Cashier
                Indiana Department of Environmental Management
                100 North Senate Avenue
                P. O. Box 7060
                Indianapolis, IN 46206-7060

11.    The Respondent shall pay an additional civil penalty of One Thousand Dollars ($1,000) per day for each day of noncompliance with the time limits set forth in this Order.

12.    This Order shall apply to and be binding upon the Respondent, its officers, directors, principals, agents, successors, subsidiaries, and assigns.

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 W. Market Street             100 N. Senate
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 10th day of June, 1997.

                                SIGNED BY:
                                Michael O'Connor
                                Commissioner

cc:    Jim Filippini, Chief, Compliance Unit 2
     U.S. EPA, Region 5, Water Section
    Floyd County Health Department
    Floyd County Planning Commission

bcc:    Deputy Commissioner (Tim Method)
    OWM Inspections (Jeff Feller)
    OWM Data Management Section (Dan Vissing)
    OWM Compliance (Don Daily)
    Legal Counsel (Ann Long)
    P file
    E file
    Originator (Steven Judith)

cc info:    Jim Filippini, Chief, Compliance Unit 2
        U.S. EPA, Region 5, Water Section
        Mail Code: WC-15J
        77 West Jackson Boulevard
        Chicago, IL 60604-3590

Converted by Andrew Scriven