13834-A

NOTICE OF VIOLATION

Via Certified Mail #: Via Certified Mail #:

To: Louis L. Mervis, President                         Phillip D. Mervis, Registered Agent                           Mervis Industries, Inc.                                      Mervis Industries, Inc.

2313 Cannon St.                                                   990 East Carter St.

Danville, IL 61832-4200                          PO Box 908

                                                                                    Kokomo, IN 46901

Case No. 2004-13834-A

Based on an investigation on or around July 1, 2003, the Indiana Department of Environmental Management (IDEM) has reason to believe Mervis Industries, Inc. (Respondent) has violated an environmental permit. The violation is based on the following:

1.                  Respondent owns and operates a stationary metal salvage facility with Plant ID No. 067-00017 located at 990 East Carter Street in Kokomo, Howard County, Indiana (the “Site”).

A. Pursuant to condition B.12 of FESOP No. 067-14127-00017, the Respondent must submit an annual compliance certification report which addresses the status of the source's compliance with the terms and conditions of the FESOP as required by 326 IAC 2-8-5(a)(1), by July 1 of each year to cover the time period from January 1 to December 31 of the previous year.

The Respondent failed to submit the annual compliance certification for the year 2002 by July 1, 2003, a violation this FESOP condition.

In accordance with IC 13-30-3-3, the Commissioner herein provides notice that a violation may exist and offers an opportunity to enter into an Agreed Order providing for the action required to correct the violation and for the payment of a civil penalty. The Commissioner is not required to extend this offer for more than sixty (60) days.

As provided in IC 13-30-3-3, an alleged violator may enter into an Agreed Order without admitting that the violation occurred. IDEM encourages settlement by Agreed Order, thereby resulting in quicker correction of the environmental violation[s] and avoidance of extensive litigation. Timely settlement by Agreed Order may result in a reduced civil penalty. Also, settlement discussions will allow the opportunity to present any mitigating factors that may be relevant to the violation.

If an Agreed Order is not entered into within sixty (60) days of receipt of this Notice of Violation, the Commissioner may issue a Notice and Order under IC 13-30-3-4 containing the actions that must be taken to correct the violation and requiring the payment of 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 Kristopher M. Grinnell at (317) 233-1133 within fifteen (15) days after receipt of this Notice to discuss resolution of this matter.

For the Commissioner:

Signed September 14, 2004

Felicia A. Robinson

Deputy Commissioner

for Legal Affairs

cc:        Howard County Health Department

            Jay Rodia, Office of Legal Counsel

Mark Goldman, Air Compliance Section 1

            Kristopher M. Grinnell, Office of Enforcement

            OAQ Pubic File

            Enforcement File

            http://www. IN.gov/idem