Via Certified Mail# Via Certified Mail#

To: Kenneth J. Miller, Incorporator Kenneth J. Miller, Registered Agent

Preferred Environmental Standards, Inc. Preferred Environmental Standards, Inc.

221 Inwood Drive 715 First Avenue

Evansville, Indiana 47711 Evansville, Indiana 47710

Case No. 2003-12655-A

Based on investigation by designated representatives of the Indiana Department of Environmental Management (IDEM) on November 27, 2002, Preferred Environmental Standards, Inc.("Respondent") implemented an asbestos demolition project at 400 North Main Street, in Evansville, Indiana and was in violation of the following environmental statute(s), rule(s), and/or permit(s):

A. Pursuant to 326 IAC 14-10-4(3), when regulated asbestos containing material (RACM) is stripped from a facility component while it remains in place in the facility, the RACM shall be wetted during the stripping operation. The IDEM inspector observed insulation material not being adequately wetted, a violation of 326 IAC 14-10-4(3)

B. Pursuant to 326 IAC 14-10-4(6)(A), asbestos shall be adequately wetted, properly handled and disposed of to ensure asbestos fibers will not be released during or after removal. The IDEM inspector observed asbestos material that was not adequately wetted or properly handled during or after removal, a violation of 326 IAC 14-10-4(6).

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.

Please contact Amy L. Moreland at 317.232.8428 within fifteen (15) days after receipt of this Notice regarding your intent to settle this matter. If you are willing to resolve this matter as provided for in the enclosed Agreed Order, please sign and return it to the Office of Enforcement at the above address within the sixty (60) day settlement period.

For the Commissioner:

Signed 5/12/03

Date:

Felicia A. Robinson

Deputy Commissioner

for Legal Affairs

cc: Vanderburgh County Health Department

Mary Ann Habeeb, Office of Legal Counsel

Amy L. Moreland, Office of Enforcement

David Zendell, Office of Air Quality/SWRO

Enforcement File

Public File