NOTICE OF VIOLATION

Via Certified Mail#

To: Wm. Milton Cole, President and Registered Agent

Cole Hardwood, Inc.

1611 West Market Street

Logansport, IN 46947

Case No. 2002-12363-A

Based on investigation by designated representatives of the Indiana Department of Environmental Management (IDEM) on September 3, 2002, Cole Hardwood, Inc., 1611 West Market Street, Logansport, Indiana, was in violation of the following environmental statute(s), rule(s), and/or permit(s):

• Pursuant to Part 70 Operating Permit No. T017-7522-00028, Section C.14, the Permittee shall prepare and maintain a written emergency reduction plan consistent with safe operating procedures. During the investigation conducted on September 3, 2002, it was determined that Permittee failed to prepare and maintain a written emergency reduction plan consistent with safe operating procedures, a violation of Part 70 Operating Permit No. T017-7522-00028, Section C.14.



• Pursuant to Part 70 Operating Permit No. T017-7522-00028, Section C.20, the Permittee shall a prepare and submit a Quarterly Deviation and Compliance Monitoring Report within thirty (30) days of the end of each reporting period. During the investigation conducted on September 3, 2002, it was determined that Permittee failed to prepare and submit a Quarterly Deviation and Compliance Monitoring Report within thirty (30) days of the end of each reporting period for the last calender quarter of 2000, all four calender quarters of 2001, and the first two calender quarters of 2002, violations of Part 70 Operating Permit No. T017-7522-00028, Section C.20.

• Pursuant to Part 70 Operating Permit No. T017-7522-00028, Section D.1.2, the Permittee shall perform PM testing on the wood-fired boilers, identified as EU01 and EU1-3, during the period between 60 days and 180 days after issuance of (that) permit, to demonstrate compliance with D.1.1(b) and D.1.1(c) utilizing a method approved by the Commissioner. That testing shall be conducted in accordance with (Part 70 Operating Permit No. T017-7522-00028) Section C- Performance Testing. During the investigation conducted on September 3, 2002, it was determined that the Permittee failed to perform PM testing on the wood-fired boilers, identified as EU01 and EU1-3, during the period between 60 days and 180 days after issuance of that permit, a violation of Part 70 Operating Permit No. T017-7522-00028, Section D.1.2



• Pursuant to Part 70 Operating Permit No. T017-7522-00028, Section D.1.4(e), the Permittee shall prepare and maintain a Compliance Response Plan for the stack exhaust from wood-fired boilers identified as EU01, EU02, and EU03. During the investigation conducted on September 3, 2002, it was determined that the Permittee failed to prepare and maintain a Compliance Response Plan for the stack exhaust from wood-fired boilers identified as EU01, EU02, and EU03, a violation of Part 70 Operating Permit No. T017-7522-00028, Section D.1.4(e).



• Pursuant to Part 70 Operating Permit No. T017-7522-00028, Section D.1.7, the Permittee shall, pursuant to 40 CFR Part 60.48c(g) (Standards of Performance for Small Industrial-Commercial Institutional Steam Generating Units) and 326 IAC 12 (New Source Performance Standards) maintain a daily record of the amount of fuel combusted for the boilers identified as EU01-2 and EU01-3, and maintain those records for a period of five (5) years following the date of such record. During the investigation conducted on September 3, 2002, it was determined that the Permittee failed to pursuant to 40 CFR Part 60.48c(g) (Standards of Performance for Small Industrial-Commercial Institutional Steam Generating Units) and 326 IAC 12 (New Source Performance Standards) maintain a daily record of the amount of fuel combusted for the boilers identified as EU01-2 and EU01-3, and maintain those records for a period of five (5) years following the date of such record, a violation of Part 70 Operating Permit No. T017-7522-00028, Section D.1.7.



• Pursuant to Part 70 Operating Permit No. T017-7522-00028, Section D.2.2, the Permittee shall prepare and maintain a Preventive Maintenance Plan, in accordance with Part 70 Operating Permit No. T017-7522-00028, Section B - Preventive Maintenance Plan, for the woodworking machining line identified as EU02-1. During the investigation conducted on September 3, 2002, it was determined that the Permittee failed to prepare and maintain a Preventive Maintenance Plan, in accordance with Part 70 Operating Permit No. T017-7522-00028, Section B - Preventive Maintenance Plan, for the woodworking machining line identified as EU02-1, a violation of Part 70 Operating Permit No. T017-7522-00028, Section D.2.2.



• Pursuant to Part 70 Operating Permit No. T017-7522-00028, Section D.2.6, the Permittee shall record the total static pressure-drop across the baghouse used in conjunction with the woodworking process, prepare and maintain a Compliance Response Plan for the baghouse, and calibrate the pressure gauges for the baghouse at least once every six months. During the investigation conducted on September 3, 2002, it was determined that the Permittee failed to record the total static pressure-drop across the baghouse used in conjunction with the woodworking process, prepare and maintain a Compliance Response Plan for the baghouse, and calibrate the pressure gauges for the baghouse at least once every six months, violations of Part 70 Operating Permit No. T017-7522-00028, Section D.2.6.



• Pursuant to Part 70 Operating Permit No. T017-7522-00028, Section D.2.8, the Permittee shall maintain records of daily visible emission notations of the woodworking machining lines' stack exhaust and the inlet and outlet differential static pressure during normal operation when venting to the atmosphere; the Permittee shall document all response steps implemented per event; the Permittee shall maintain operation and preventive maintenance logs, including work purchase-orders; the Permittee shall maintain Quality Assurance/Quality Control (QA/QC) procedures; the Permittee shall maintain Operator standard operating procedures (SOPs); the Permitte shall maintain an equipment "troubleshooting" contingency plan; and the Permittee shall maintain documentation of the dates vents are redirected. During the investigation conducted on September 3, 2002, it was determined that the Permittee failed to maintain records of daily visible emission notations of the woodworking machining lines' stack exhaust and the inlet and outlet differential static pressure during normal operation when venting to the atmosphere; the Permittee failed to document all response steps implemented per event; the Permittee failed to maintain operation and preventive maintenance logs, including work purchase-orders; the Permittee failed to maintain Quality Assurance/Quality Control (QA/QC) procedures; the Permittee failed to maintain Operator standard operating procedures (SOPs); the Permittee failed to maintain an equipment "troubleshooting" contingency plan; and the Permittee failed to maintain documentation of the dates vents are redirected, violations of Part 70 Operating Permit No. T017-7522-00028, Section D.2.8.

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 Eric Larsen at (317) 233-1133 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 11/13/2003

Felicia A. Robinson

Deputy Commissioner

for Legal Affairs

cc: Cass County Health Department

Eric Larsen, Office of Enforcement

Dave Rice, Office of Air Quality

Enforcement File

OAQ Public File

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