Via Certified Mail# Via Certified Mail#

To: Mr. Joseph L. DeRita, President Scott Reinholt, Registered Agent

Dalton Corporation For Dalton Corporation

3755 Lake City Highway 3755 Lake City Highway

Warsaw, IN 46580 Warsaw, IN 46580

Case No. 2001-11054-A and 2001-11055-A

Based on investigation by designated representatives of the Indiana Department of Environmental Management (IDEM) on October 11, 2000, January 9, 2001, and on October 31, 2001, Dalton Corporation, which owns and operates Warsaw Manufacturing Facility and Kendallville Manufacturing Facility, gray iron foundries, located at 1900 East Jefferson Street in Warsaw, Indiana, Kosciusko County, and at 200 West Ohio Street in Kendallville, Indiana, Noble County ("Respondent"), was in violation of the following environmental statute(s), rule(s), and/or permit(s):

Pursuant to 326 IAC 6-4-2(4), no source shall allow fugitive dust to visibly cross the boundary or property line of a source. On October 11 and 24, 2000, and on January 9, 2001, Respondent allowed fugitive emissions from cupola charge door and from the "B" scrubber to cross property lines at ground level at its Kendallville Manufacturing Facility, violations of 326 IAC 6-4-2(4). On October 31, 2001, Respondent allowed fugitive emissions from the scrap yard and smoke from the Herman II cooling stacks to cross property lines at ground level at its Warsaw Manufacturing Facility, violations of 326 IAC 6-4-2(4).

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 Mr. Michael Stonik at (317) 233-0033 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 March 5, 2002

Date:

Felicia A. Robinson

Deputy Commissioner

for Legal Affairs

cc: Jean Bauer, US EPA Region 5

Noble County Health Department

Kosciusko County Health Department

Jay Rodia, Office of Legal Counsel

Michael Stonik, Office of Enforcement

Richard Sekula, Office of Air Quality

Enforcement File

Public File

http://www.in.gov/idem/enforcement/