NOTICE OF VIOLATION

Via Certified Mail#

To: Supreme Oil Company, Inc. R.C. O'Connor, R.A.

L.B. Sexton, President 1319 Vincennes St.

1319 Vincennes St. New Albany, IN 47150

P.O. Box 62

New Albany, IN 47150

Case No. 2001-10510-S

Based on an investigation by designated representatives of the Indiana Department of Environmental Management (IDEM) on April 4, 2001, the Supreme Mart Marathon, Facility ID# 9651, owned by Supreme Oil Company, Inc., located at 201 Vincennes St., New Albany, Floyd County, Indiana ("Site") is in violation of the following environmental rules:

A. Pursuant to 329 IAC 9-2.1-1(a)(3), all existing UST systems shall comply with one (1) of the following requirements on or before December 22, 1998: (1) New UST system performance standards under 329 IAC 9-2-1. (2) The upgrading requirements under subsections (b) through (d). (3) Closure requirements under 329 IAC 9-6-1 through 329 IAC 9-6-5, including applicable requirements for corrective action under 329 IAC 9-5-1 through 329 IAC 9-5-8. On the above noted inspection, the UST system used for waste oil storage at the Site did not meet the new UST system performance standards, has not been upgraded, and has not been properly closed.

B. Pursuant to 329 IAC 9-2-2(a), any owner who brings a UST system into use shall, within thirty (30) days of bringing such tank into use, submit notice to the agency to register the tank system using a form provided by the agency for this notification. On the above noted inspection, the UST system used for waste oil storage at the Site was not registered with IDEM.

C. Pursuant to 329 IAC 9-7-1, all owner and operators of new and existing UST systems shall provide a method, or combination of methods, of release detection. On the above noted inspection, it was observed that no approved form of release detection was being utilized.

D. Pursuant to 329 IAC 9-6-5(a)(2), when a UST system is temporarily closed, the owner and operator shall continue operation and maintenance of any release detection under 329 IAC 9-7, except release detection is not required as long as the UST system is empty. On the Above noted inspection, it was observed that no approved method of release detection was being utilized and the UST systems contained product.

In accordance with IC 13-30-3-3, the Commissioner is required to notify an alleged violator in writing that a violation may exist and offer an opportunity to enter into an Agreed Order providing for the actions required to correct the violations and for the payment of a civil penalty. The Commissioner is not required to extend this offer for more than sixty (60) days.

Entering into an Agreed Order will prevent the issuance of a Notice and Order of the Commissioner under IC 13-30-3-4, or the filing of a civil court action under IC 13-14-2-6. IDEM encourages settlement by Agreed Order, thereby saving time and resources. Timely settlement by Agreed Order may result in a reduced civil penalty. Settlement discussions will also allow the opportunity to present any mitigating factors that may be relevant to the violations. In addition, as provided in IC 13-30-3-3, an alleged violator may enter into an Agreed Order without admitting that the violation occurred.

If settlement is not reached within sixty (60) days of receipt of this Notice of Violation, the Commissioner may issue a Notice and Order containing the actions that must be taken to achieve compliance, the required time frames, and an appropriate civil penalty. Pursuant to IC 13-23-14, the Commissioner may assess penalties of up to $10,000 per underground storage tank for each day of violation.

To discuss this matter further, please contact Mr. Dirk Andres at 317/233-5534 within fifteen (15) days after receipt of this Notice to request a conference. If settlement is reached, an Agreed Order will be prepared and sent for review and signature.

For the Commissioner:

Signed on 6/20/2001

Date: _______________ _________________________

Felicia A. Robinson

Assistant Commissioner

Office of Enforcement

cc: Sandy Lynch, US EPA Region 5

Floyd County Health Department

Public File Facility ID# 9651

http://www.state.in.us/idem

bcc: Office of Legal Counsel

Dirk Andres, Office of Enforcement

William Myers, Office of Land Quality