NOTICE OF VIOLATION

To: Mr. D. C. Yearley, President CT Corporation System

Phelps Dodge Industries, Inc. 36 South Pennsylvania Street, Suite 700

2600 North central Avenue Indianapolis, Indiana 46204

Phoenix, Arizona 85004

Case No. 2001-10606-A

Based on investigation by designated representatives of the Indiana Department of Environmental Management (IDEM) on January 16, 2001, Phelps Dodge Magnet Wire Coating Company, a unit of Phelps Dodge Industries, Inc., located at 4300 New Haven Avenue, Fort Wayne, Allen County, Indiana was in violation of the following environmental statute(s), rule(s), and/or permit(s):

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 13-30-4-1, the Commissioner may assess penalties of up to $25,000 per day for each violation.

To discuss this matter further, please contact Linda McClure at 317-232-8408 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 September 19, 2001

Date: _______________ _________________________

Felicia A. Robinson

Assistant Commissioner

Office of Enforcement

cc: Ms Theresa Murden-Myers, Phelps Dodge Magnet Wire Coating Company

Mr. Jay Rodia, Office of Legal Counsel

Ms Linda L. McClure, Office of Enforcement

Mr. Steve Friend, Office of Air Quality

Enforcement File

OAM Public File

http://www.ai.org/idem

CC Address:

Ms Jennifer Theresa Murden-Myers

Phelps Dodge Magnet Wire Coating Company

4300 New Haven Avenue

Fort Wayne, Indiana 46803