Via Certified Mail #

To: Mr. Aaron R. Applegate

President and Registered Agent

R. G. Applegate Steel Co., Inc.

P. O. Box 68

Saratoga, IN 47382-0068

Case No. 2003-13188-A

Based on investigation by designated representatives of the Indiana Department of Environmental Management (IDEM), R. G. Applegate Steel Co., Inc. ("Respondent"), which owns and operates a miscellaneous metal parts used in livestock equipment fabrication facility, located at 201 Owens Street in Saratoga, Indiana, Randolph County, was in violation of the following environmental statute(s), rule(s), and/or permit(s):

Pursuant to 326 IAC 2-6-3, the owner or operator of any facility with the potential to emit carbon monoxide (CO), volatile organic compounds (VOCs), oxides of nitrogen (NOx), particulate matter (PM10), or sulfur dioxide (SO2) into the ambient air at levels equal to or greater than one hundred (100) tons per year to annually submit an emission statement to the Commissioner by July 1 of the following year.

This facility failed to submit your emission statement for the year of 2002 by July 1, 2003, a violation of 326 IAC 2-6-3.

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 Mr. Michael Stonik at (317) 233-0033 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 on November 3, 2003

Date:

Felicia A. Robinson

Deputy Commissioner

for Legal Affairs

cc: Randolph County Health Department

Office of Legal Counsel

Michael Stonik, Office of Enforcement

Michelle Boner, Office of Air Quality

Marc Goldman, Office of Air Quality

Enforcement File

Public File

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

Mr. R. Duane Brim

R. G. Applegate Steel Co., Inc.

P. O. Box 68

Saratoga, IN 47382-0068