NOTICE OF VIOLATION

Via Certified Mail# _______________ Via Certified Mail#_______________

To: Michael Dillon United Corporate Services, Inc.,

SCA Tissue North America, LLC Registered Agent

240 Waite Street One Indiana Square, Suite 3500

Gary, Indiana 46404 Indianapolis, Indiana 46204

Case No. 2002-12410-A

Based on investigation by designated representatives of the Indiana Department of Environmental Management (IDEM) on August 13, 2001, SCA Tissue North America, LLC which owns and operates a secondary paper manufacturing plant located at 240 Waite Street, Gary, Lake County, Indiana, was in violation of the following environmental rules:

A. Pursuant to 326 IAC 2-7-3, any Part 70 source which has failed to submit a timely and complete Part 70 permit application may not operate after the time that it is required to submit the Part 70 permit application. This source continued to operate following the December 13, 1996 Part 70 permit submission deadline and prior to applying for and receiving a Part 70 permit, a violation of 326 IAC 2-7-3.

B. Pursuant to 326 IAC 2-7-4, the owner of each Part 70 source shall submit a timely and complete permit application. This source's Part 70 permit application was received after the December 13, 1996 submission deadline, a violation of

326 IAC 2-7-4.

C. Pursuant to 326 IAC 8-7, stationary sources located in Lake County that have the potential to emit greater than 25 tpy VOC must implement an emissions reduction measure on or before May 31, 1995 as established in this rule. SCA Tissue North America, LLC failed to implement an established emissions reduction measure on or before May 31, 1995, a violation of 326 IAC 8-7.

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 Lynne Sullivan at (317) 233-5521 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 7/3/03

Felicia A. Robinson

Deputy Commissioner

for Legal Affairs

cc: Rochelle Marceillars, US EPA Region 5

Lake County Health Department

Office of Legal Counsel

Lynne Sullivan, Office of Enforcement

Rick Massoels, Northwest Regional Office

Rodney Sommerville, Gary Department of Environmental Affairs

OAQ Public File

Enforcement File

http://www.IN.gov/idem