NOTICE OF VIOLATION

Via Certified Mail #:		Via Certified Mail #:
To:	Blair Homes, Inc. Emily Springler, President Incorporator 5242 Scottsville Road Floyds Knobs, IN 47119	Blair Homes, Inc. Anthony J. Wallingford, Attorney at Law Registered Agent 430 West First Street New Albany, IN 47150

Case No. 2005-14561-W

Based on an investigation, the Indiana Department of Environmental Management ("IDEM") has reason to believe that Blair Homes, Inc. ("Respondent") has violated environmental rules and general permit requirements for individual building lots within a permitted project at a construction site. The violations are based on the following:

1. Respondent is the individual lot owner of individual building lot number 23 in the Crestwood Manor development, located in or near Floyds Knobs, in Floyd County, Indiana (the "Site").

2. The operator of the Crestwood Manor development submitted and received approval of a Notice of Intent ("NOI") and an Erosion and Sediment Control Plan ("ESCP") for the Crestwood Manor development in 2002, as required by 327 IAC 15-5 effective at that time.

3. All references to 327 IAC 15-5 and its various subparts are to the version in effect prior to the rule change on November 26, 2003.

4. Pursuant to 327 IAC 15-5-7(b), the following requirements shall be met on all sites during the period when active land disturbing activities occur:

A. Public and private roadways shall be kept clear of accumulated sediment.

B. Run-off from a disturbed area shall be controlled by either appropriate vegetative practices, the implementation of an erosion control plan that includes appropriate erosion control measures, or both.

5. Pursuant to 327 IAC 15-5-7(c), during the period of construction at a site, all erosion control measures necessary to meet the requirements of 327 IAC 15-5-7 shall be maintained by the operator. The Respondent submitted the Notice of Intent ("NOI") prior to November of 2003, and has not submitted another NOI for the Site. Therefore the above noted provisions remain in effect.

6. Pursuant to 327 IAC 15-5-10(b), all persons engaging in land disturbing activity on a site shall be responsible for complying with the soil erosion control plan for that site and the provisions of 327 IAC 15-5.

7. Pursuant to 327 IAC 15-5-10(c), upon investigation by IDEM, any person causing or contributing to a violation of any provisions of 327 IAC 15-5 shall be subject to enforcement and penalty under IC 13-14-10, IC 13-15-7, and IC 13-30.

8. Pursuant to 327 IAC 15-5-10(d), if remaining erosion control measures are not properly maintained by the person occupying or owning the property, the department may pursue enforcement against that person for correction of deficiencies under 327 IAC 15-1-4.

9. During an inspection conducted on December 3, 2004, Indiana Department of Natural Resources (IDNR) staff observed that the Respondent had failed to ensure that erosion control measures were implemented and maintained at the Site. IDNR staff observed that lot number 23 was out of compliance with 327 IAC 15-5 due to soil entering Viewcrest Loop from the disturbed area on the lot, the silt fence in front of the house was in a severe state of disrepair, and no seeding, mulch, or sod application had occurred.

10. During an inspection conducted at the Site on February 4, 2005, IDNR staff observed that there had been insufficient improvements since the previous on-site evaluation. Lot number 22 was out of compliance with 327 IAC 15-5 due to soil entering Viewcrest Loop from disturbed area on the lot. The silt fence in front of the house was in a severe state of disrepair, and no seeding, mulch, or sod application had occurred.

11. Based on the inspections conducted by the IDNR Division of Soil Conservation on December 3, 2004, and February 4, 2005, the Respondent caused or contributed to the failure to implement and maintain erosion control measures at the Site. Specifically:

A. Public and private roadways were not kept clear of accumulated sediment.

B. Run-off from a disturbed area was not controlled by either appropriate vegetative practices, the implementation of an erosion control plan that includes appropriate erosion control measures, or both.

Therefore, the Respondent caused or contributed to the violation of 327 IAC 15-5-7(b), 327 IAC 15-5-10(b) and 327 IAC 15-5-10(d).

In accordance with IC 13-30-3-3, the Commissioner herein provides notice that violations may exist and offers an opportunity to enter into an Agreed Order providing for the action 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 60 days.

As provided in IC 13-30-3-3, an alleged violator may enter into an Agreed Order without admitting that the violations occurred. IDEM encourages settlement by Agreed Order, thereby resulting in quicker correction of the environmental violations 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 violations.

If an Agreed Order is not entered into within 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 violations 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.

To discuss this matter further, please contact Terry Ressler, Case Manager, at 317/232-8433 within 15 days after receipt of this Notice. 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 60 day settlement period.

Date:	For the Commissioner: Signed on May 10, 2005
Matthew T. Klein Assistant Commissioner for Compliance and Enforcement

cc: Floyd County Soil and Water Conservation District