VIA CERTIFIED MAIL# ____________________

NOTICE OF VIOLATION

To: Arthur W. Klipsch, as an individual Jerry Lynn Fruth, as an individual

and as Registered Agent of and as President and Registered Agent of

Klipsch Enterprises, L. L. C. Urban Planning and Development Corp.

900 East Columbia Street 900 East Franklin Street

P. O. Box 4537 Evansville, IN 47711

Evansville, IN 47724

Cause No. A-4220

Cause No. SW-379

In May 1996, designated representative(s) of the Indiana Department of Environmental Management (IDEM) began an investigation into allegations that asbestos containing material (ACM) was being abated and disposed of in violation of the Indiana Administrative Code and the Indiana Code (IC). Through this investigation, it was determined that Arthur Klipsch, acting as an individual and on behalf of Klipsch Enterprises, L. L. C., and Jerry Lynn Fruth, acting as an individual and on behalf of Urban Planning and Development Corporation (hereinafter collectively referred to as "Respondents"), violated the provisions of 326 IAC 14-10, 326 IAC 18-3, 329 IAC 10-4-2, 329 IAC 10-4-3, 329 IAC 10-8-4 (329 IAC 10-8.1-12 as of July 9, 1998) and IC 13-20-2-1.

Rule 326 IAC 14-10 details the requirements for the removal and handling of asbestos containing material (ACM).

Rule 326 IAC 18-3 details the accreditation requirements with regard to asbestos removal projects.

Rule 329 IAC 10-8-4 (329 IAC 10-8.1-12 as of July 9, 1998) details asbestos disposal requirements with regard to special waste.

Statute IC 13-30-2-1 and Rules 329 IAC 10-4-2 and 329 IAC 10-4-3 detail prohibited acts as they relate to the storage, containment, processing and disposal of solid waste.

On more than one occasion, prior to June 1996, Respondents implemented asbestos abatement projects at the industrial warehouse located at 810/820 East Columbia Street, in Evansville, Indiana, which is owned and operated by Klipsch Enterprises, L. L. C. In the course of implementing these projects, the Respondents failed to comply with applicable asbestos removal, handling and accreditation regulations as specified in 326 IAC 14-10 and 326 IAC 18-3. In addition, the ACM generated from these projects was not disposed of at a municipal solid waste landfill that has been approved by IDEM to accept ACM, a violation of 329 IAC 10-8-4 (329 IAC 10-8.1-12 as of July 9, 1998), 329 IAC 10-4-2 and 329 IAC 10-4-3.

In accordance with IC 13-30-3-3, the Commissioner is required to notify you in writing that the Commissioner believes a violation exists and offer you 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.

If settlement is not reached within sixty (60) days of your receipt of this Notice, the Commissioner may issue an Order pursuant to IC 13-30-3-4, containing the actions you must take 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 of any violation.

The timely entry into an Agreed Order will prevent the necessity of an Order of the Commissioner being issued under IC 13-30-3-4, or the filing of a civil court action under IC 13-14-10 or IC 13-14-2-6. Advantages of entering into an Agreed Order are:

1. You may not be required to admit that any violation occurred.

2. The civil penalty may be less than that imposed under an Order of the Commissioner.

To discuss this matter further, please contact Matthew Stuckey at 317/233-1134 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 to you for review and signature.

For the Commissioner:

Date: _______________ _Signed on 8/18/98________

David J. Hensel

Director

Office of Enforcement

cc: Vanderburgh County Health Department

Aaron Schmoll, Office of Legal Counsel

Matthew Stuckey, Office of Enforcement

David Zendell, Office of Air Management

Janet Arnold, Office of Enforcement

Kaye Driskill, Office of Solid and Hazardous Waste

Enforcement File