Link to original WordPerfect Document here



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-10806
            v.                    )
                                )
RED SPOT PAINT & VARNISH COMPANY, 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 violations contained herein.

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

    3.    Respondent is Red Spot Paint & Varnish Company, Inc. which is a company engaging in business at 1016 East Columbia Street, Evansville, Vanderburgh County, Indiana, 47711.
    
    4.    Respondent's EPA I.D. No. is IND 990873499.

    5.    Respondent notified on August 14, 1980 as a large quantity generator ("LQG") of hazardous waste, a transporter of hazardous waste, and a treatment, storage and disposal ("TSD") facility. Respondent withdrew its TSD facility status on September 7, 1985 and withdrew its transporter status April 9, 1990.

    6.    On February 17, 1988, Respondent had a release to the environment of approximately two hundred (200) gallons of isopropyl alcohol.

    7.    Based upon an investigation of the facility on January 23, 1991, by the Office of Solid and Hazardous Waste Management (hereinafter referred to as the "OSHWM") of the IDEM, the IDEM contends that violations were in existence or observed at the time of the inspection concerning Respondent's proper identification of hazardous waste, labeling of hazardous waste containers, hazardous waste accumulation and storage techniques (including spills and other releases), completion of its contingency plan and other emergency-related requirements, retention of personnel training records, and manifest-related requirements. Subsequent to such inspection, the IDEM and Respondent have discussed the alleged violations and procedural alterations to rectify such alleged violations. Respondent has indicated to the IDEM that it has initiated measures to eliminate the circumstances giving rise to the alleged violations.

    8.    Respondent submitted a request on August 5, 1991 to renew its Special Waste Disposal Approval for its spent filter media and sampling debris used in sampling and distribution of paint and pigment. Since July 1, 1988, Respondent has had approval from IDEM to dispose of its aforementioned special waste stream at the Laubscher Meadows Landfill in Evansville, Vanderburgh County, Indiana. IDEM approved Respondent's most recent request (Special Waste Disposal Approval No. 10758) on August 14, 1991 to landfill a maximum of three thousand (3,000) tons of its spent filter media and sampling debris used in sampling and distribution of paint and pigment.
    
    9.    Based upon an investigation of the facility on September 15 & 16 and October 26, 1994, by the OSHWM of the IDEM and Region V of the U. S. EPA, the IDEM contends that the following violations were in existence or observed at the time of the inspection:

        a.    Pursuant to 40 CFR 262.11 and 40 CFR 268.7, 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, Respondent failed to make a proper hazardous waste determination for the following waste streams:

            (i).    rags and filters, generated throughout the facility, contaminated

with methyl ethyl ketone ("MEK"), a F005 listed hazardous waste;

            (ii).    thirty (30) skids of both five (5) and one (1) gallon unusable or off- specification paint-related materials located adjacent to the Waste Process and Recycling Area; and

            (iii).    one (1) two hundred and fifty (250) gallon tote stored on the east side of the Lacquer Tank Farm.

            Respondent contends that the thirty (30) skids of paint-related material, noted within Finding of Fact No. 9(a)(ii), were usable products awaiting transfer to a newly-constructed building. Further, Respondent contends that the tote, noted within Finding of Fact No. 9(a)(iii), contained rainwater suspected of truck pump oil contamination collected from the tanker off-loading collection pit. Respondent lastly contends that this rainwater was transferred into Respondent's wastewater pretreatment system on September 15, 1994.

        b.    Pursuant to 40 CFR 262.12(c) and IC 13-30-2-1(10), a generator must not offer its hazardous waste to transporters or TSD facilities that have not received an EPA identification number. Further, pursuant to 329 IAC 2- 21-2, no generator of special waste or permitted solid waste facility may dispose, or cause to be disposed, such waste, except as provided within 329 IAC 2-21 or 329 IAC 2-5. Based upon the information gathered by IDEM, Respondent had offered hazardous waste for disposal, noted within Finding of Fact No. 9(a)(i), to the Laubscher Meadows Landfill located in Evansville, Vanderburgh County, Indiana. Further, Respondent failed to properly characterize its special waste as hazardous waste, pursuant to 329 IAC 2-21-10, as referenced by 329 IAC 2-21-2.

        c.    Pursuant to IC 13-30-2-1(11), 329 IAC 3.1-7-3(a), and 329 IAC 3.1-7- 4(c), no person may cause or allow the transportation of hazardous waste without a manifest whenever a manifest is required by law. Specifically, a generator who transports, or offers for transport, hazardous waste for off- site treatment, storage, disposal, or recovery must complete the Indiana hazardous waste manifest form adopted by the Board on EPA Form 8700- 22. Further, if the generator is located within Indiana and the hazardous waste is consigned to a facility within Indiana, then the generator must use the manifest form adopted by the Board. Based upon the information gathered by IDEM, Respondent allowed the transportation of hazardous waste, noted within Finding of Fact No. 9(a)(i), without using the Indiana hazardous waste manifest form adopted by the Board.

        d.    Pursuant to 40 CFR 268.7, a generator of hazardous waste restricted from land disposal must complete a land disposal restriction ("LDR") form for each shipment of hazardous waste that is restricted from land disposal. Based upon the information gathered by IDEM, Respondent failed to complete a LDR form for each shipment of hazardous waste, noted within Finding of Fact No. 9(a)(i), restricted from land disposal.

        e.    Pursuant to 329 IAC 3.1-1-11, IC 13-30-2-1(9), and 40 CFR 264.1, no person may commence or engage in the operation of any hazardous waste facility without having first obtained a permit from the department. Specifically, a generator who engages in the treatment of hazardous waste without a permit is an operator of a treatment facility and is in violation of and subject to:

            (i).    the requirements of 40 CFR Part 264; and

            (ii).    the permit requirements of 40 CFR Part 270.

            Based upon information gathered by IDEM, Respondent had engaged in the treatment of hazardous waste at the North and South hazardous waste tank system without both obtaining a permit as required by 40 CFR Part 270 and complying with the applicable requirements of 40 CFR Part 264.

        f.    Pursuant to 40 CFR 262.34(a)(3), while being accumulated on-site, each container holding hazardous waste must be labeled or marked clearly with the words "Hazardous Waste." Based upon the information gathered by IDEM, Respondent failed to mark the following drums of hazardous waste with the words "Hazardous Waste:"

            (i).    one (1) fifty-five (55) gallon drum and three (3) two hundred and fifty (250) gallon totes located within the Waste Process and Recycling Area;

            (ii).    one (1) two hundred and fifty (250) gallon tote located within the Solvent Recycling Zone; and

            (iii).    one (1) two hundred and fifty (250) gallon tote located on the east side of the Lacquer Tank Farm.

            Respondent contends that the tote, noted within Finding of Fact No. 9(f)(iii), contained rainwater suspected of truck pump oil contamination collected from the tanker off-loading collection pit. In addition, Respondent contends that this rainwater was transferred into Respondent's

wastewater pretreatment system on September 15, 1994.
            
        g.    Pursuant to 40 CFR 262.34(a)(2), the start of accumulation period must be clearly marked on each container holding hazardous waste. Based upon the information gathered by IDEM, Respondent failed to mark the following hazardous waste containers with the date upon which each period of accumulation had begun:

            (i).    eleven (11) fifty-five (55) gallon drums located within the Waste Process and Recycling Area;

            (ii).    three (3) two hundred and fifty (250) gallon totes located within the Waste Process and Recycling Area;

            (iii).    three (3) fifty-five (55) gallon drums located within the Reutilization and Investigation Area;

            (iv).    twenty-seven (27) fifty-five (55) gallon drums located within the Solvent Recycling Zone;

            (v).    one (1) two hundred and fifty (250) gallon tote located within the Solvent Recycling Zone;
    
            (vi).    twelve (12) two hundred and fifty (250) gallon totes located within the Waste Process and Recycling Area. Each of the twelve (12) totes were improperly dated November 11, 1993;

            (vii).    one (1) two hundred and fifty (250) gallon tote stored between Building No. 6 and Building No. 9. This particular tote was improperly dated April 5, 1994;

            (viii).    thirty (30) skids of unusable paint materials located in the Waste Process and Recycling Area; and

            (ix).    one (1) two hundred and fifty (250) gallon tote located on the east side of the Lacquer Tank Farm.

            Respondent contends that the thirty (30) skids of unusable paint materials located in the Waste Process and Recycling Area, noted within Finding of Fact No. 9(g)(viii), were actually samples and chemist retains removed from Respondent's former Research & Development Laboratories, as noted within Respondent's September 19, 1994 internal memorandum, awaiting transfer to the Material Investigation Zone for proper

identification. Moreover, Respondent contends that the tote, noted within Finding of Fact No. 9(g)(ix), contained rainwater suspected of truck pump oil contamination collected from the tanker off-loading collection pit. Respondent contends that this rainwater was transferred into Respondent's wastewater pretreatment system on September 15, 1994.

        h.    Pursuant to 40 CFR 262.34(c)(l)(ii), a generator may accumulate as much as fifty-five (55) gallons of hazardous waste in containers at or near the point of generation where wastes initially accumulate which is under the control of the operator without a permit or interim status. The generator must mark his containers either with the words "Hazardous Waste" or with other words that identify the contents of the container. Based upon the information gathered by IDEM, Respondent failed to mark its hazardous waste satellite accumulation containers with the words "Hazardous Waste" or with other words that identify the contents of the container for the following areas:

            (i).    two (2) fifty-five (55) gallon drums located within the Waste Process and Recycling Area;

            (ii).    one (1) fifty-five (55) gallon drum located within Waste Enclave 3G;

            (iii).    one (1) fifty-five (55) gallon drum located within the Product Quality Laboratory;

            (iv).    one (1) five (5) gallon bucket located within the Spraymation Area;

            (v).    one (1) fifty-five (55) gallon drum located within the Tank Room; and

            (vi).    one (1) fifty-five (55) gallon drum located within Waste Enclave 4B of Building No. 14.

            Respondent contends that the satellite accumulation containers, noted within Finding of Fact No. 9(h)(i), contained minimal residue, but were not being used for hazardous waste accumulation.

        i.    Pursuant to 40 CFR 265.173(a), as referenced by 40 CFR 262.34(c)(1)(i), a satellite accumulation 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, Respondent failed to maintain the following hazardous waste satellite accumulation containers

in a closed condition:

            (i).    two (2) fifty-five (55) gallon drums located within the Waste Process and Recycling Area;

            (ii).    two (2) fifty-five (55) gallon drums located within Waste Enclave 3G;

            (iii).    one (1) fifty-five (55) gallon drum located within Waste Enclave 3E;

            (iv).    two (2) fifty-five (55) gallon drums located within the Product Quality Laboratory;

            (v).    three (3) five (5) gallon buckets located within the Spraymation Area;

            (vi).    two (2) fifty-five (55) gallon drums located within Waste Enclave 3A;

            (vii).    two (2) fifty-five (55) gallon drums located within the Tank Room;

            (viii).    one (1) fifty-five (55) gallon drum located within Waste Enclave 3H of the Prebatch Department;

            (ix).    one (1) fifty-five (55) gallon drum located within Waste Enclave 1C of the UV Production Area in Building No. 1;

            (x).    one (1) fifty-five (55) gallon drum located within Waste Enclave 4B of Building No. 14;

            (xi).    one (1) fifty-five (55) gallon drum located within Waste Enclave 2A of Building No. 2 (the Lacquer Plant);

            (xii).    three (3) fifty-five (55) gallon buckets located within Waste Enclave 1H of the UV Laboratory in Building No. 5;

            (xiii).    two (2) fifty-five (55) gallon drums located within Waste Enclave 7D;

            (xiv).    five (5) fifty-five (55) gallon drums located within Waste Enclave 7C;

            (xv).    five (5) fifty-five (55) gallon drums located within Waste Enclave 7B;

            (xvi).    two (2) fifty-five (55) gallon drums located within Waste Enclave 7A; and

            (xvii).    one (1) fifty-five (55) gallon drum located within the UV Laboratory.

            Each of the aforementioned satellite accumulation containers retained quantities of both F005 (MEK) and/or F003 (acetone) listed hazardous wastes. Furthermore, the satellite accumulation container, noted within Finding of Fact No. 9(i)(iii), was the only container to retain an attached funnel with smaller containers (cups) resting on the funnel.

            Respondent contends that most of the satellite accumulation containers, noted within Finding of Fact No. 9(i), had an attached funnel and smaller containers were resting on the funnels, actively draining into the larger containers. Furthermore, Respondent contends that a portion of the containers, also noted within Finding of Fact No. 9(i), were special waste containers and not hazardous waste satellite accumulation containers.

        j.    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, Respondent failed to maintain the following hazardous waste containers in a closed condition:

            (i).    eleven (11) fifty-five (55) gallon drums located within the Waste Process and Recycling Area;

            (ii).    one (1) two hundred and fifty (250) gallon tote located within the Waste Process and Recycling Area;

            (iii).    one (1) two hundred and fifty (250) gallon tote located within the Solvent Recycling Zone;

            (iv).    one (1) two hundred and fifty (250) gallon tote stored between Building No. 6 and Building No. 9; and

            (v).    one (1) two hundred and fifty (250) gallon tote located on the east side of the Lacquer Tank Farm.

            Respondent contends that the hazardous waste containers, noted within Finding of Fact No. 9(j)(i-ii), were in the process of being either filled or emptied. Also, Respondent contends that the material retained within the two hundred and fifty (250) gallon tote, noted within Finding of Fact No. 9(j)(iv), was identified as boiler fuel oil subsequent to the September 15 & 16, 1994 inspection. Lastly, Respondent contends that the tote noted within Finding of Fact No. 9(j)(v) did not contain hazardous waste.

        k.    Pursuant to 40 CFR 265.171, as referenced by 40 CFR 262.34(a)(1)(i), if a container holding hazardous waste is not in good condition, or if it begins to leak, the owner or operator must transfer the hazardous waste from this container to a container that is in good condition, or manage the waste in some other way that complies with the requirements of Part 265. Based upon the information gathered by IDEM, Respondent failed to alternatively manage or transfer the contents of thirty (30) skids of both five (5) and one (1) gallon containers that were severely rusted, located within the Waste Process and Recycling Area, to containers that are in good condition.

            Respondent contends that, while some of the materials, noted within Finding of Fact No. 9(k), were in containers that were not appropriate for outdoor storage, these materials were not hazardous wastes.

        l.    Pursuant to 40 CFR 265.35, as referenced by 40 CFR 262.34(a)(4), the owner or operator of a facility 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, unless aisle space is not needed for any of these purposes. Based upon the information gathered by IDEM, Respondent failed to provide adequate aisle space for inspections and movement of emergency equipment within the Solvent Recycling Zone. This particular violation was corrected at the time of the inspection.

        m.    Pursuant to 40 CFR 265.192(a), as referenced by 40 CFR 262.34(a)(1)(ii), owners and operators of new tank systems or components must ensure that the foundation, structural support seams, connections, and pressure controls (if applicable) are adequately designed and that the tank system has sufficient structural strength, compatibility with the waste(s) to be stored or treated, and corrosion protection so that it will not collapse, rupture, or fail. The owner or operator must obtain a written assessment reviewed and certified by an independent, qualified, registered professional engineer in accordance with 40 CFR 270.11(d) attesting that the system has sufficient structural integrity and is acceptable for the

storing and treating of hazardous waste. Based upon the information gathered by IDEM, Respondent had not obtained a written integrity assessment for the North and South hazardous waste tank system located within the Waste Recycling and Process Area.

        n.    Pursuant to 40 CFR 265.192(b), as referenced by 40 CFR 262.34(a)(1)(ii), the owner or operator of a new tank system must ensure that the proper handling procedures are adhered to in order to prevent damage to the system during installation. Prior to covering, enclosing, or placing a new tank system or component in use, an independent, qualified installation inspector or an independent, qualified, registered, professional engineer, either of whom is trained and experienced in the proper installation of tank systems, must inspect the system or component for the presence of any of the following items: weld breaks; punctures; scrapes of protective coatings; cracks; corrosion; and other structural damage or inadequate construction or installation. All discrepancies must be remedied before the tank system is covered, enclosed, or placed in use. Based upon the information gathered by IDEM, Respondent failed to perform an installation inspection of the North and South hazardous waste tank system located within the Waste Recycling and Process Area prior to placing the system into use.

        o.    Pursuant to 40 CFR 265.192(d), as referenced by 40 CFR 262.34(a)(1)(ii), all new tanks and ancillary equipment must be tested for tightness prior to being covered, enclosed, or placed in use. If a tank system is found not to be tight, all repairs necessary to remedy the leak(s) in the system must be performed prior to the tank system being covered, enclosed, or placed in use. Based upon the information gathered by IDEM, Respondent failed to test the North and South hazardous waste tank system located within the Waste Recycling and Process Area for tightness prior to being placed into use.

        p.    Pursuant to 40 CFR 265.193, as referenced by 40 CFR 262.34(a)(1)(ii), secondary containment systems must be provided in order to prevent the release of hazardous waste or hazardous waste constituents to the environment. Such systems must be sloped or otherwise designed or operated to drain and remove liquids resulting from leaks, spills, or precipitation. Based upon the information gathered by IDEM, Respondent failed to provide and maintain secondary containment for its North and South hazardous waste tank system and appurtenances located within the Waste Recycling and Process Area.

        q.    Pursuant to 40 CFR 265.194(b)(1) and 265.194(b)(2), as referenced by 40

CFR 262.34(a)(1)(ii), the owner or operator of a facility must use appropriate controls and practices to prevent spills and overflows from tank or secondary containment systems. These include at a minimum: spill prevention controls (e.g., check valves, dry discount couplings); and overfill prevention controls (e.g., level sensing devices, high level alarms, automatic feed cutoff, or bypass to a standby tank). Based upon the information gathered by IDEM, Respondent had not utilized spill and overfill prevention controls and practices to prevent spills and overflows from its North and South hazardous waste tank system located within the Waste Recycling and Process Area.

        r.    Pursuant to 40 CFR 265.195(a), as referenced by 40 CFR 262.34(a)(1)(ii), the owner or operator of a facility must inspect, where present, at least once each operating day: overfill/spill control equipment (e.g., waste-feed cutoff systems, bypass systems, and drainage systems) to ensure that it is in good working order; the aboveground portions of the tank system, if any, to detect corrosion or releases of waste; data gathered from monitoring equipment and leak-detection equipment, (e.g., pressure and temperature gauges, monitoring wells) to ensure that the tank system is being operated according to its design; and the construction materials and the area immediately surrounding the externally accessible portion of the tank system including secondary containment structures (e.g., dikes) to detect erosion or signs of releases of hazardous waste (e.g., wet spots, dead vegetation). Based upon the information gathered by IDEM, Respondent failed to conduct inspections of its North and South hazardous waste tank system and appurtenances, located within the Waste Recycling and Process Area, at least once each operating day.

        s.    Pursuant to 40 CFR 265.195(c), as referenced by 40 CFR 262.34(a)(1)(ii), owners or operators must document the daily inspection of hazardous waste tank systems and appurtenances within the operating record of the facility. Based upon the information gathered by IDEM, Respondent failed to document the inspections of its North and South hazardous waste tank system and appurtenances located within the Waste Recycling and Process Area.

        t.    Pursuant to 40 CFR 265.16(d)(1), as referenced by 40 CFR 262.34(a)(4), the owner or operator must maintain documents and records at the facility which describe the job title for each position at the facility related to hazardous waste management, and the name of the employee filling each job. Based upon the information gathered by IDEM, Respondent failed to maintain personnel training records that contain job titles for both Greg Shelton and Arvil Kleitz who hold positions related to hazardous waste

management.

    10.    Respondent advised that certain of the alleged violations referenced in Finding of Fact No. 9 resulted from IDEM's inpsections being conducted during the process of Respondent's relocation to its new research and development facility, and such alleged violations would likely not have otherwise resulted but for such relocation.

          Respondent contends that it consistently utilized the storage vessels in the North and South hazardous waste system within the Waste Recycling and Process Area, noted within Finding of Fact Nos. 9(m) through 9(s), as containers subject to 40 CFR 265 Subpart I and not as tanks subject to 40 CFR 265 Subpart J.

          Respondent has modified and now operates the storage vessels in the North and South hazardous waste system as containers and, in addition, has complied with the applicable generator closure requirements for tanks pursuant to 40 CFR 265 Subpart J.

    13.    An informal settlement conference was held between IDEM and representatives from Red Spot on January 4 and July 16, 1996, and March 12, 1997 in an attempt to address the violations noted within Finding of Fact Nos. 7 & 9.

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

        Charles D. Storms, President & Resident Agent
        Red Spot Paint & Varnish Company, Inc.
        1016 East Columbia Street
        Evansville, Indiana 47711

    15.    Final adoption of this Agreed Order constitutes the full and final resolution of all violations identified by IDEM during the inspections of Respondent's facility on January 23, 1991, and September 15 & 16 and October 26, 1994. 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 has been received by the Respondent. This Agreed Order shall have no force or effect until the Effective Date.

    2.    Upon the effective date of the Order, Respondent shall make proper hazardous

waste determinations, pursuant to 40 CFR 262.11 and 40 CFR 268.7, for its solid waste as defined by 40 CFR 261.2. Further, Respondent shall manage its waste in accordance with the results of its hazardous waste determinations.

    3.    Upon the effective date of the Order, Respondent shall ensure that, pursuant to 40 CFR 262.12(c) and IC 13-30-2-1(10), its hazardous waste shall only be offered to transporters or TSD facilities that have received an EPA identification number. Further, Respondent shall ensure that, in the future, its special waste will be properly characterized, pursuant to 329 IAC 2-21-10, as referenced by 329 IAC 2- 21-2.

    4.    Upon the effective date of the Order, Respondent shall ensure that, pursuant to IC 13-30-2-1(11), 329 IAC 3.1-7-3(a), and 329 IAC 3.1-7-4(c), it will not cause or allow the transportation of hazardous waste without a manifest.

    5.    Upon the effective date of the Order, Respondent shall ensure that, pursuant to 40 CFR 268.7, for each shipment of hazardous waste that is restricted from land disposal, a LDR form accompanies each hazardous waste manifest.

    6.    Upon the effective date of the order, Respondent shall conduct all hazardous waste treatment activities in compliance with applicable regulations.

    7.    Upon the effective date of the order, Respondent shall, pursuant to 40 CFR 262.34(a)(3), label or clearly mark with the words "Hazardous Waste" each container holding hazardous waste while being accumulated on-site.

    8.    Upon the effective date of the Order, Respondent shall, pursuant to 40 CFR 262.34(a)(2), clearly mark the start of accumulation period on each container holding hazardous waste.

    9.    Upon the effective date of the Order, Respondent shall, pursuant to 40 CFR 262.34(c)(l)(ii), mark its satellite accumulation containers either with the words "Hazardous Waste" or with other words that identify the contents of the container.

    10.    Upon the effective date of the Order, Respondent shall ensure that, pursuant to 40 CFR 265.173(a), as referenced by 40 CFR 262.34(a)(1)(i), containers holding hazardous waste, including satellite accumulation containers, shall remain closed during storage, except when it is necessary to add or remove waste.

    11.    Upon the effective date of the Order, Respondent shall, pursuant to 40 CFR 262.34(c)(2), comply within (3) days with 40 CFR 262.34(a) for any satellite accumulation container holding greater than fifty-five (55) gallons of hazardous waste. Further, Respondent shall, in the interim, mark the satellite accumulation

container holding the excess accumulation of hazardous waste with the date the excess amount began accumulating.

    12.    Upon the effective date of the Order, Respondent shall ensure that, pursuant to 40 CFR 265.171, as referenced by 40 CFR 262.34(a)(1)(i), if a container holding hazardous waste is not in good condition, or if it begins to leak, it shall transfer the hazardous waste from this one container to a container that is in good condition, or manage the waste in some other way that complies with the requirements of 40 CFR Part 265.

    13.    Upon the effective date of the Order, Respondent shall ensure that, pursuant to 40 CFR 265.173(b), as referenced by 40 CFR 262.34(a)(1)(i), a container holding hazardous waste will not be opened, handled, or stored in a manner that may rupture the container or cause it to leak.

    14.    Upon the effective date of the Order, Respondent shall ensure that, pursuant to 40 CFR 265.176, as referenced by 40 CFR 262.34(a)(1)(i), a container holding ignitable or reactive waste shall be stored at least 15 meters (50 feet) from the facility's property line.

    15.    Upon the effective date of the Order, Respondent shall, pursuant to 40 CFR 265.35, as referenced by 40 CFR 262.34(a)(4), provide and maintain adequate aisle space for the hazardous waste containers stored throughout its facility.

    16.    Within thirty (30) days of the effective date of the Order, Respondent shall, pursuant to 40 CFR 265.16(d)(1), as referenced by 40 CFR 262.34(a)(4), submit to IDEM its personnel training records that contain job titles and the names for each employee filling a job title for a position related to hazardous waste management.

    17.    Within thirty (30) days of the effective date of the Order, Respondent shall, pursuant to 40 CFR 265.16(d)(2), as referenced by 40 CFR 262.34(a)(4) , submit to IDEM written job descriptions for each position related to hazardous waste management, including the requisite skill, education, or other qualifications, and duties of facility personnel assigned to each position.

    18.    Within thirty (30) days of the effective date of the Order, Respondent shall, pursuant to 40 CFR 265.16(d)(3), as referenced by 40 CFR 262.34(a)(4), submit to IDEM a written description of the type and amount of both introductory and continuing training that will be given to each person filling a position related to hazardous waste management.

    19.    Upon the effective date of the Order, Respondent shall ensure that, pursuant to 40

CFR 265.16(a)(1), as referenced by 40 CFR 262.34(a)(4) , facility personnel successfully complete a program of classroom instruction or on-the-job training that teaches them to perform their duties in a way that ensures the facility's compliance with the requirements of Part 265. Further, and within thirty (30) days of the effective date of the Order, Respondent shall submit to IDEM documentation that verifies the following:

        a.    Jim Livergood, Jim Martin, Norman Rice, Ken Tolliver, and Virgil Whitledge have received fire extinguisher training;

        b.    Danny Fetscher and Norman Rice have received waste handling training; and

        c.    Jim Martin has received hazard communication training.

    20.    Within thirty (30) days of the effective date of the Order, Respondent shall, pursuant to 40 CFR 265.16(c), as referenced by 40 CFR 262.34(a)(4), submit documentation that facility personnel have taken part in the most recent annual review of the initial hazardous waste management training required pursuant to 40 CFR 265.16(a).

    21.    Upon the effective date of the Order, Respondent shall ensure that, pursuant to IC 13-30-2-1(1), and 40 CFR 265.31, as referenced by 40 CFR 262.34(a)(4), its facility shall be maintained and operated to minimize the possibility of a fire, explosion, or any unplanned sudden or non-sudden release of hazardous waste or hazardous waste constituents to air, soil, or surface water which could threaten human health or the environment.
    
    22.    Upon the effective date of the Order, Respondent shall, pursuant to 40 CFR 265.32, as referenced by 40 CFR 262.34(a)(4), equip the following areas of the facility with immediate access to an internal alarm system or other form of communication device:

        a.    generator accumulation area No. 2;

        b.    generator accumulation area No. 5; and

        c.    generator accumulation area No. 6.

    23.    Upon the effective date of the Order, Respondent shall, pursuant to 40 CFR 265.33, as referenced by 40 CFR 262.34(a)(4), submit documentation verifying that testing and maintenance procedures for all its communications or alarm systems, fire protection equipment, spill control equipment, and decontamination

equipment has been established for the following areas of the facility:

        a.    generator accumulation area No. 1;

        b.    generator accumulation area No. 3; and

        c.    the Hazardous Waste Building.

    24.    Upon the effective date of the Order, Respondent shall ensure that, pursuant to 40 CFR 265.51(b) and 40 CFR 265.56, as referenced by 40 CFR 262.34(a)(4), whenever there is a release of hazardous waste or hazardous waste constituents which could threaten human health or the environment, it shall 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, Respondent shall, within fifteen (15) days after the incident, ensure that it submits a written report to the Commissioner that includes information delineated at 40 CFR 265.56(j)(1) through 265.56(j)(7).

    25.    Within thirty (30) days of the effective date of the Order, Respondent shall review and amend its facility contingency plan to meet the substantive requirements of 40 CFR 265 Subpart D, and submit such amended contingency plan to IDEM. The submitted contingency plan shall note, in particular, those persons qualified to act as emergency coordinator; a location and physical description of the of each piece of emergency equipment; and a map that depicts alternate evacuation routes.

    26.    Upon the effective date of the Order, Respondent shall ensure that, pursuant to 329 IAC 3.1-7-3(a), 329 IAC 3.1-7-8(a), and 329 IAC 3.1-7-11(a), when it transports, or offers for transport, hazardous waste for off-site treatment, storage, disposal, or recovery it shall properly, fully, and completely prepare the manifest adopted by the Board on EPA Form 8700-22, and, if necessary, EPA Form 8700- 22A.

    27.    All submittals required by this Agreed Order shall be sent to (unless notified otherwise in writing):

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

    28.    Respondent is assessed a Civil Penalty of $53,110. Within thirty (30) days of the effective date of the Agreed Order, Respondent shall pay a cash penalty of $10,622. The payment shall be submitted to the Environmental Management Special Fund as directed by Order No. 30. In lieu of payment of the remaining Civil Penalty, Respondent shall perform and complete the Supplemental Environmental Projects ("SEPs"), as described in Exhibit A. Exhibit A is hereby incorporated by reference and made a part of this Agreed Order. The total funds expended on the SEPs shall be a minimum of $425,000. If the SEPs are not completed in accordance with this agreement and within the specified time period, Respondent agrees to pay the remaining amount of the Civil Penalty, plus interest at the rate established by IC 24-4.6-1-101, to the Environmental Management Special Fund. Payment of the remaining Civil Penalty shall be submitted within fifteen (15) days from receipt of a notice to pay from IDEM. Interest on the remaining Civil Penalty shall be paid from the effective date of this Agreed Order.

        Upon the effective date of the Agreed Order, Respondent shall initiate quarterly progress reports due by January 1 and July 1 of each year until notice has been provided by IDEM that the SEPs delineated within Exhibit A have been completed. Such progress reports shall be submitted in accordance with Order No. 27 and shall include, but not be limited to, documentation on:

             Project No. 1:

            (i).    Total number of closed-loop production and cleaning vessels developed and associated costs;

            (ii).    Productivity and labor increases or decreases;

            (iii).    Raw material savings in both production and cleaning; and

            (iv).    Total pounds of volatile organic compounds ("VOCs") captured and recycled directly resulting from the closed-loop production and cleaning mixing vessels.

             A general description of progress on the design and fabrication of the Mobile Hazmat Spill Simulation Unit under Project No. 2; and

    29.    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 each time        $100    per violation days 1-7

        frame specified in Orders 2, 16, 17,         $200    per violation days 8-30
        18, 19, 20, and 25 of the            $500     per violation days 31-60
        Agreed Order.                    $1,000 per violation after 60 days

        Said stipulated penalty 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 said stipulated penalty shall not preclude the Complainant from seeking any injunctive 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, including, but not limited to, civil penalties pursuant to IC 13-30-4.

    30.    Civil and stipulated penalties are 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 46207-7060

    31.    In the event that the civil penalty required by paragraph 28 is not paid within thirty (30) days of the effective date of this Agreed Order or the payment of the stipulated penalties assessed pursuant to paragraph 29 are not made within thirty (30) days of Respondent's receipt of IDEM's demand, Respondent shall pay interest on the unpaid balance at the rate established by IC 24-4.6-1-101. The interest shall begin to accrue on the date the Respondent receives IDEM's demand.

    32.    This Order shall apply to and be binding upon the Respondent, its officers, directors, principals, employees, 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.

    33.    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.

    34.    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.

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



TECHNICAL RECOMMENDATION        RESPONDENT

By:    ___________________________        By:    _________________________
    Nancy Johnston, Chief
    Hazardous Waste Section            
    Office of Enforcement

Date:    __________________________        Date:    _________________________

COUNSEL FOR COMPLAINANT            COUNSEL FOR RESPONDENT

By:    __________________________        By:    _________________________
    Scott R. Storms                    G. Michael Schopmeyer
    Office of Legal Counsel                Kahn, Dees, Donovan & Kahn
    Department of Environmental        
    Management

Date:    _________________________        Date:    _________________________

APPROVED AND ADOPTED BY THE INDIANA DEPARTMENT OF
ENVIRONMENTAL MANAGEMENT

THIS ______________ DAY OF _______________, 19______.

                        [FOR THE COMMISSIONER]

                        ____[Adopted on 4/2/98]______________
                            David J. Hensel
                            Director
                            Office of Enforcement


Exhibit A

Project No. 1

    Respondent shall expend no less than Four Hundred Thousand Dollars ($400,000) in equipment and labor to develop and implement a closed-loop production and an associated cleaning system ("Closed-Loop System") for the manufacture of VOC-containing paints and the associated vessel and equipment cleaning operations thereof. The Closed-Loop System shall be designed and fabricated with the intention of substantially reducing the Respondent's current fugitive VOC emissions from its batch processing manufacturing operations. The System shall be (1) capable of accommodating variable speed agitation; (2) portable; (3) easily rinsed or otherwise cleaned; and (4) capable of capturing and condensing fugitive VOC emissions for reuse from Respondent's portable mixing vessels through the utilization of one or more techniques, including isolated containment, capture, condensation, and/or concentration of the VOC element. Respondent shall implement the Closed-Loop System on no less than forty (40) portable and/or stationary mixing vessels with a capacity of no less than two hundred (200) gallons. Respondent shall complete the implementation of the Closed-Loop System no later than December 31, 1999.

Project No. 2

    Respondent shall expend no less than Twenty-Five Thousand Dollars ($25,000) in equipment and labor to design and begin construction of a Mobile Hazmat Spill Simulation Unit ("Unit") to be used in hazardous materials emergency response training. The Unit shall be designed and constructed with the intention of providing hands-on training by simulation of process equipment failure scenarios and related hazardous materials training exercises. The Unit shall be used in Respondent's hazardous materials training and will be made available to representatives of the Evansville Fire Department, Vanderburgh County Health Department, IDEM, and other businesses and industries within Southern Indiana for similar purposes. Respondent shall complete the design and construction of the Unit no later than July 1, 1999.

Converted by Andrew Scriven