Via Certified Mail # Via Certified Mail #

To: Frank M. Walker, President C T Corporation System, Registered Agent

Feralloy Corporation d/b/a Feralloy Corporation d/b/a

Indiana Pickling and Processing Indiana Pickling and Processing

8755 West Higgins Road, Suite 970 36 S. Pennsylvania Street, Suite 700

Chicago, Illinois 60631 Indianapolis, Indiana 46204

Case No. 2003-13042-A

Based on investigation by designated representatives of the Indiana Department of Environmental Management (IDEM) on July 20, 2002, Feralloy Corporation d/b/a Indiana Pickling and Processing ("Respondent"), which owns and operates a stationary steel pickling plant in Portage, Porter County, Indiana, was in violation of the following environmental statute(s), rule(s), and/or permit(s):

A. Pursuant to 326 IAC 2-8-3(h) and condition B.17 of Federally Enforceable State Operating Permit ("FESOP") No. F127-8850-00041, for purposes of a FESOP renewal, a timely application is one that is submitted at least nine (9) months prior to the date of expiration of the source's existing permit. The FESOP for this source expired on April 20, 2003, however a FESOP renewal application was not submitted until November 20, 2002. This application was submitted less than nine (9) months prior to the expiration of the source's existing permit, a violation of 326 IAC 2-8-3(h) and condition B.17 and F127-8850-00041.

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 9/3/2003

Date:

Felicia A. Robinson

Deputy Commissioner

for Legal Affairs

cc: Porter County Health Department

Jay Rodia, Office of Legal Counsel

Amy Moreland, Office of Enforcement

Karthika Thuraiajah, Office of Air Quality

Dave Sampias, Office of Air Quality

Enforcement File

Public File

http://www.ai.org/idem/