NOTICE OF VIOLATION

Via Certified Mail# _______________ Via Certified Mail# _______________ To: Nico Niessen John Vander Hoff Registered Agent Vreba Hoff Dairy Development, L.L.C. Milco Dairy Farm, L.L.C. 1290 N. Shoop Ave.

9302 S. C.R. 275 E. Wauseon, OH 43567

Lewisville, IN 47352

Case No. 2002-12489-S and 2002-12534-S

Based on investigation by designated representatives of the Indiana Department of Environmental Management (IDEM) on September 12 and 23, 2002, Vreba Hoff Dairy Development, L.L.C. and Milco Dairy Farm, L.L.C., Confined Feeding Operation (CFO) approval # AW-4859, located at 9302 S. C.R. 275 E., in Lewisville, Henry County, Indiana (Site), are in violation of the following rule:

Pursuant to 327 IAC 16-4-2(1) the following condition applies to all confined feeding approvals: the owner/operator must comply with all terms and conditions of the approval and this article.

Vreba Hoff Dairy Development, L.L.C. and Milco Dairy Farm, L.L.C. did not construct manure control facilities, at the site, in compliance with the terms and conditions of CFO approval # AW-4859, in violation of 327 IAC 16-4-2(1). 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 Craig Henry at 317/233-1136 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 February 21, 2003

Felicia A. Robinson

Deputy Commissioner

for Legal Affairs

cc: Henry County Health Dept.

Henry County Public File, L file