NOTICE OF VIOLATION

Via Certified Mail# _______________ Via Certified Mail# _______________

To: Gary Niblock, President James R. Brotherson, Registered Agent

Niblock Excavating Inc. Niblock Excavating Inc.

R.R 1 317 West Franklin Street

Union, Michigan 49130 Elkhart, Indiana 46514

Via Certified Mail# _______________

Thomas D. Flegal, Registered Agent

Northwest Hamilton Lake Development Company, L.L.C.

6430 South 300 East

Hamilton, Indiana 46742

Case No. 2003-12778-A

Based on investigation by designated representatives of the Indiana Department of Environmental Management (IDEM) on January 16th and 17th, 2003, Niblock Excavating Inc., and Northwest Hamilton Lake Development Company, L.L.C. which implemented a construction operation at a former gravel pit being developed into a subdivision, commonly known as the Crystal Bay Development on Hamilton Lake which is located in Hamilton, Steuben county, Indiana, was in violation of the following environmental statute(s), rule(s), and/or permit(s):

A. Pursuant to 326 IAC 6-4-2(4), no source shall allow fugitive dust to visibly cross the boundary or property line of a source. This source allowed fugitive emissions to cross property lines at ground level, a violation of 326 IAC 6-4-2(4).

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 violationn.

To discuss this matter further, please contact Amy L. Moreland at 317.232.8428 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 7/3/03

Date: _______________ _________________________

Felicia A. Robinson

Deputy Commissioner

For Legal Affairs

cc: Steuben County Health Department

Amy L. Moreland, Office of Enforcement

Doyle Houser, Air Compliance Inspector /NRO

Office of Legal Counsel

Enforcement File

OAQ public file