NOTICE OF VIOLATION

Via Certified Mail# _______________ Via Certified Mail#_______________

To: Mr. Alexander M. Cutler, President C T Corporation System, Registered Agent

Eaton Corporation for Eaton Corporation

Eaton Center, 1111 Superior Ave. 36 S. Pennsylvania Street Suite 700

Cleveland, OH 44114-2584 Indianapolis, IN 46204

Case No. 2000-9659-A

Based on investigation by designated representatives of the Indiana Department of Environmental Management (IDEM), Eaton Corporation ("Respondent") formerly known as Spicer Clutch Division of Dana Corporation, located at 201 Brandon Street in Auburn, Dekalb County, Indiana, was in violation of the following environmental statute(s), rule(s), and/or permit(s):

A. Pursuant to 326 IAC 2-1-3, a source or facility which has allowable emissions of twenty-five (25) tons or more per year of any regulated pollutant shall apply for and obtain a construction permit prior to commencing construction. This source, a clutch manufacturing facility, was constructed without first applying for and obtaining a construction permit, a violation of 326 IAC 2-1-3.

• Pursuant to 326 IAC 2-1-4, a source or facility which has allowable emissions of twenty-five (25) tons or more per year of any regulated pollutant shall apply for and obtain an operating permit prior to commencing operation. This source began operating without first applying for and obtaining an operating permit, a violation of 326 IAC 2-1-4.



• Pursuant to 326 IAC 2-7-3, no Part 70 source may operate after the time that it is required to submit a timely and complete application except in compliance with a Part 70 permit issued under this rule. A source can continue to operate without being in violation of this rule if it submits a timely and complete application.

This source operated without submitting a timely and complete Part 70 permit application, a violation of 326 IAC 2-7-3.

• Pursuant to 326 IAC 2-7-4 a timely Part 70 application is one that is received within twelve (12) months after the source becomes subject to the Part 70 permit program. For applicable sources in existence on December 14, 1995, the deadline is December 13, 1996. For other sources, the deadline is twelve (12) months from the date the source first meets an applicability criterion of section 2 of this rule. This source failed to submit a timely Part 70 application because this source's Part 70 permit application was received on January 21, 2000, after the December 13, 1996 submission deadline, a violation of 326 IAC 2-7-4.



• Pursuant to 326 IAC 2-2-3, a major stationary PSD source or modification shall meet each applicable emission limitation and apply the best available control technology (BACT) for each pollutant. For phased construction projects, the BACT determination shall be reviewed and modified as appropriate. This major stationary source was constructed and began operating without applying or modifying the BACT, a violation of 326 IAC 2-2-3.

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.

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:

Signed on March 6, 2001

Date: _______________ _________________________

Felicia A. Robinson

Assistant Commissioner

Office of Enforcement

cc: Jean Bauer, US EPA Region 5

Dekalb County Health Department

Jay Rodia, Office of Legal Counsel

Michael Stonik, Office of Enforcement

Gurinder Saini, Office of Air Management

Doyle Houser, Northern Regional Office

Enforcement File

OAM Public File

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

Lowell Puls, Plant Manager, Eaton Corporation, 201 Brandon Street, Auburn, IN 46706