NOTICE OF VIOLATION

Via Certified Mail# _______________ Via Certified Mail# _______________

To: Kiel Bros. Oil Company, Inc. Gregory J Pence, Registered Agent

Theodore C. Kiel, President 3801 Tupelo Drive

P.O. Box 344 Columbus, IN 47201

Columbus, IN 47202

Case No. 2002-11839-S

Based on an investigation by designated representatives of the Indiana Department of Environmental Management (IDEM) on July 23, 2002 and November 26, 2002, Kiel Bros. Oil Company, Inc., facility ID# 7279, located at 111 W. Morton Street, Oakland City, Gibson County, Indiana ("Site") is in violation of the following environmental rules:

1. Pursuant to 329 IAC 9-3.1-2(1), the owner and operator of a steel UST system with corrosion protection shall operate and maintain all corrosion protection systems to continuously provide corrosion protection to the metal components of that portion of the tank and piping that routinely contain regulated substances and are in contact with the ground to ensure that releases due to corrosion are prevented for as long as the UST system is used to store regulated substances. During the above mentioned inspections it was found that corrosion protection had not been maintained on UST systems at the Site, thus violating 329 IAC 9-3.1-2(1).
2. Pursuant to 329 IAC 9-3.1-2(2)(a), all UST systems equipped with galvanic cathodic protection systems must be inspected for proper operation by a qualified cathodic protection tester within six (6) months of installation and at least every three (3) years thereafter. During the above mentioned inspection it was found that UST systems equipped with galvanic cathodic protection at the Site had not been tested per 329 IAC 9-3.1-2(2)(a), thus violating 329 IAC 9-3.1-2(2)(a).

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 $10,000 per underground storage tank for each day of violation.

To discuss this matter further, please contact 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 2/10/2003

Date: _______________ _________________________

Felicia A. Robinson

Deputy Commissioner

for Legal Affairs

cc: Sandy Siler, US EPA Region 5

Gibson County Health Department

Facility ID# 7279 Public File

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