NOTICE OF VIOLATION

Via Certified Mail# _______________

To: Keith E. Busse, President and Registered Agent

Steel Dynamics, Inc.

7030 Pointe Inverness Way, Suite 310

Ft. Wayne, IN 46804

Case No. 2001-10845-A

Based on investigation by designated representatives of the Indiana Department of Environmental Management (IDEM), Steel Dynamics, Inc.("SDI"), located at 4500 County Road 59, in Butler, Indiana, was in violation of the following environmental statute(s), rule(s), and/or permit(s):

Pursuant to 40 CFR 60.273a (Subpart AAa - Standards of Performance for Steel Plants: EAF and AOD vessels constructed after August 7, 1983), a continuous monitoring system for the measurement of opacity of emissions discharged into the atmosphere from the control device(s) shall be installed, calibrated, maintained, and operated by the owner or operator. A representative of IDEM has reviewed the quarterly opacity monitor reports for the EAF baghouse stack. According to these reports, the COM was not in operation for approximately 7.46% of the second operating quarter of 2001, a violation of 40 CFR 60.273a.

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 Matthew Stuckey at (317) 233-1134 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:

Date: _______________ _Signed on 4/11/02__

Felicia A. Robinson

Deputy Commissioner

for Legal Affairs

cc: Jean Bauer, U. S. EPA Region 5

Dekalb County Health Department

Jay Rodia, Office of Legal Counsel

Matthew Stuckey, Office of Enforcement

Dick Sekula, Office of Air Quality

Karen Nowak, Office of Air Quality

Mark Millet, Steel Dynamics, Inc.

Barry Smith, Steel Dynamics, Inc.

Enforcement File

OAQ Public File

http://www.ai.org/idem/