NOTICE OF VIOLATION

	Via Certified Mail #:	Via Certified Mail #:
	___________________	___________________
To:	Mr. Joseph L. Derita, President	Mr. Ron Schmucker, Registered Agent
	Dalton Corporation	for Dalton Corporation
	3755 Lake City Highway	3755 Lake City Highway
	Warsaw, IN 46580	Warsaw, IN 46580

Case No. 2005-14940-A

Based on an investigation on January 18 and 20, and on July 12 and 13, 2005, the Indiana Department of Environmental Management (“IDEM”) has reason to believe that Dalton Corporation (“Respondent”) has violated environmental permits. The violations are based on the following:

1. Respondent owns and operates Herman III pouring, castings cooling, shakeout and sand handling operations at its gray iron foundry with Federal ID number 085-00003 located at 1900 Jefferson Street in Warsaw, Kosciusko County, Indiana (“Site”).

2. Stack tests were conducted at the Site on January 18 and 20, and on July 12 and 13, 2005.

a. Pursuant to permit number 085-14027-00003 issued on February 22, 2002, condition D.5.1(a), PM emissions from the Herman III shakeout and sand handling process shall not exceed 0.034 pounds per ton (lb/ton) of metal and sand throughput.

Average PM emissions measured during the January, 2005 stack test were 0.048 lb/ton of metal and sand throughput in violation of permit condition D.5.1(a).

b. Pursuant to permit condition D.5.1(b), PM10 emissions from the Herman III shakeout and sand handling process shall not exceed 0.058 lb/ton of metal and sand throughput.

Average PM10 emissions measured during the January, 2005 stack test were 0.083 lb/ton of metal and sand throughput in violation of permit condition D.5.1(b).

c. Pursuant to permit condition D.5.1(c), VOC emissions from the Herman III shakeout and sand handling process shall not exceed 0.115 lb/ton of metal and sand throughput.

Average VOC emissions measured during the July, 2005 stack test were 0.272 lb/ton of metal and sand throughput in violation of permit condition D.5.1(c).

d. Pursuant to permit condition D.4.1(e), VOC emissions from the Herman III pouring process shall not exceed 0.163 lb/ton of metal throughput.

Average VOC emissions measured during the July, 2005 stack test were 1.09 lb/ton of metal throughput in violation of permit condition D.4.1(e).

e. Pursuant to permit condition D.4.1(i), VOC emissions from the Herman III cooling process shall not exceed 0.687 lb/ton of metal throughput.

Average VOC emissions measured during the July, 2005 stack test were 1.346 lb/ton of metal throughput in violation of permit condition D.4.1(i).

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 sixty (60) days.

As provided in IC 13-30-3-4, 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 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 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 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:
Date:		Signed on January 10, 2006
		Matthew T. Klein
		Assistant Commissioner for
		Compliance and Enforcement
cc:	Kosciusko County Health Department
	Office of Legal Counsel
	Michael Stonik, Office of Enforcement
	Richard Sekula, Office of Air Quality
	Enforcement File
	Public File
	http://www.in.gov/idem/enforcement/

Mr. Michael Schall

Dalton Corporation

200 West Ohio Street

Kendallville, IN 46755

Ms. Lisa A. McCoy, Manager

Administrative Services

Dalton Corporation

3755 Lake City Highway

P. O. Box 230

Warsaw, IN 46581-0230