Via Certified Mail# Via Certified Mail#

To: Mr. Gerard M. Dombeck, President CT Corporation System, Registered Agent

Sequa Coatings Corporation for Precoat Metals, a Division of

1310 Papin Street Sequa Coatings Corporation

St. Louis, MO 63103 36 South Pennsylvania Street, Suite 700

Indianapolis, IN 46204

Case No. 2002-12891-A

Based on investigation by designated representatives of the Indiana Department of Environmental Management ("IDEM"), Precoat Metals, a Division of Sequa Coatings Corporation ("Respondent"), which owns and operates thermal oxidizers at its metal coil coating facility, located at US Highway 12 and Route 249 in Portage, Indiana, Porter County, was in violation of the following environmental statute(s), rule(s), and/or permit(s):

A. Pursuant the Part 70 permit number T127-6025-00005, issued on February 10, 1999 ("Permit"), as amended by the Significant Permit Modification No. SPM127-11786-00005, issued on April 5, 2000 ("Modification"), condition D.1.1(b), and in accordance with 326 IAC 8-1-2 and 8-2-4, Respondent shall not exceed the 15.46 pounds of volatile organic compounds ("VOC") per gallon of coating solids (lb _VOC/gal _Solids) as applied daily weighted average VOC content of the coatings limit.

At this facility, the daily weighted average VOC content of the coatings on the following dates was:

February 23, 2002 16.59 lb _VOC/gal _Solids;

April 6, 2002 20.34 lb _VOC/gal _Solids;

April 12, 2002 18.76 lb _VOC/gal _Solids;

April 27, 2002 21.69 lb _VOC/gal _Solids;

May 23, 2002 16.14 lb _VOC/gal _Solids;

May 27, 2002 18.58 lb _VOC/gal _Solids;

July 1, 2002 22.60 lb _VOC/gal _Solids;

violations of the Permit condition D.1.1(b).

• Pursuant to the Permit, as amended by the Modification, condition D.1.10(b), the recuperative thermal oxidizer ("RTO"), identified as EU4/CE-1, shall maintain a minimum operating temperature of 1,150F; and the direct flame finish oxidizer ("DFO"), identified as EU8/CE-2, shall maintain a minimum operating temperature of 1,200F or a minimum temperature, fan amperage and duct velocity as determined by the compliance tests required in Condition D.1.5. This temperature is required in order to maintain a minimum destruction efficiency of 86.02% and a minimum capture efficiency of 86.02%.

At this facility, the DFO was operating at a temperature of 950F and the control efficiency was below 86.02% on February 19, 2002, a violation of Permit Condition D.1.10(b).

• Pursuant to the Permit condition B.13(b)(4), for each emergency or deviation lasting one (1) hour or more, Respondent must notify IDEM's Office of Air Quality ("OAQ"), within four (4) daytime business hours after the beginning of the emergency or deviation, or after the emergency or deviation was discovered or reasonably should have been discovered.

The deviations on the dates, described in paragraph A above, were not reported to OAQ until October 11, 2002, violations of the Permit Condition B.13(b)(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 violation.

To discuss this matter further, please contact Mr. Michael Stonik at (317) 233-0033 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 on July 15, 2003

Date:

Felicia A. Robinson

Deputy Commissioner

for Legal Affairs

cc: Jean Bauer, US EPA Region 5

Porter County Health Department

Office of Legal Counsel

Michael Stonik, Office of Enforcement

Richard Massoels, Northwest Regional Office

Enforcement File

Public File

http://www.in.gov/idem/enforcement/

Mr. Stan Bobka

Precoat Metals, a Division of

Sequa Coatings Corporation

US Highway 12 and Route 249

Portage, Indiana 46368

Mr. Robert L. Mead

Director of Environmental Affairs

Precoat Metals, a Division of

Sequa Coatings Corporation

16402 Jacintoport

Houston, TX 77015-6596