NOTICE OF VIOLATION

Via Certified Mail#

To: Mr. Thomas F. Moran
President and Registered Agent
Perry Chemical & Manufacturing Company, Inc.
2335 South 30^th Street
Lafayette, IN 47902

Case No. 2000-9725-A

Based on investigation by designated representatives of the Indiana Department of Environmental Management (IDEM) conducted in October, 1999, Perry Chemical & Manufacturing Company, Inc. ("Respondent"), which owns and operates a flexible foam polyurethane casting plant, located at 2335 South 30^th Street in Lafayette, Indiana, Tippecanoe County, was in violation of the following environmental statute(s), rule(s), and/or permit(s):

A. 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 complete Part 70 permit application was received on April 17, 1997, after the December 13, 1996, submission deadline, a violation of 326 IAC 2-7-4.

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; or potential emissions of ten (10) tons or more per year of any individual hazardous air pollutant (HAP) or twenty-five (25) tons or more per year of HAP combination shall apply for and obtain a construction permit prior to commencing construction.

The following facilities located at this source: a fabric roller coater, identified as Unit #9, used for the application of sealant to hook fabric products, constructed in 1992; a two component polyurethane foam machine, identified as Unit #4, constructed in November, 1994; a two component polyurethane foam machine, identified as Unit #16, constructed in 1998, were constructed without first applying for and obtaining construction permits, violations 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; or potential emissions of ten (10) tons or more per year of any HAP or twenty-five (25) tons or more per year of HAP combination shall apply for and obtain an operating permit prior to commencing operation. These facilities noted in paragraph above began operating without first applying for and obtaining operating permits, violations of 326 IAC 2-1-4.

Pursuant to 326 IAC 8-2-11, an owner or operator of a fabric and vinyl coating facility shall limit coatings volatile organic compounds (VOC) content to 2.9 pounds per gallon (lb/gal) of coating or install and operate add on capture and control devices with an overall control efficiency of not less than 67.5 percent (65%), which shall meet: (1) Capture efficiency of at least seventy-five percent (75%); and (2) Control efficiency from the control device(s) of at least ninety percent (90%), while using a coating with the VOC content over 2.9 lb/gal.

Respondent failed to install and operate the required capture and control equipment, while operating a fabric roller coater using a coating with the VOC content over 2.9 lb/gal, a violation of 326 IAC 8-2-11.

D Pursuant to 326 IAC 8-3-2, an owner and operator of a cold cleaning facility shall equip the cleaner with cover and keep it closed while idling, equip the cleaner with a draining device, and comply with draining, labeling, containment, and disposal requirements.

Respondent's cold cleaners, identified as Unit #25 and Unit #30, failed to comply with the said requirements, a violation of 326 IAC 8-3-2.

Pursuant to 326 IAC 2-4.1-1, incorporating by reference 40 CFR 63, Subpart B, on or after June 29, 1998, no person may begin actual construction or reconstruction of a major source of HAP without an exempt or maximum achievable control technology (MACT) determination.

Respondent constructed a two component polyurethane foam machine, identified as Unit #16 after this date without obtaining an exempt or MACT determination, a violation of 326 IAC 2-4.1-1, incorporating by reference 40 CFR 63, Subpart B.

F. Pursuant to 326 IAC 12 incorporating by reference 40 CFR Part 60, Subpart VVV, an owner or operator of a polymeric coating of supporting substrates facilities, shall be required to: a) make semiannual estimates of the projected annual amount of VOC to be used for the manufacture of polymeric coated substrate at the affected coating operation in that year; b) maintain records of actual VOC use; c) submit a notification of anticipated startup, a material flow chart indicating projected VOC use; and d) record semiannual estimates of projected VOC use and actual 12-month VOC use, report the first semiannual estimate in which the projected VOC use exceeds the applicable cutoff, and the first 12-month period in which the actual VOC use exceeds the applicable cutoff.

Respondent failed to comply with all the requirements listed in paragraph above, while operating a polymeric coating of supporting substrates facilities, violations of 326 IAC 12, incorporating by reference 40 CFR 60.744 and 60.747.

Pursuant to 326 IAC 14 incorporating by reference 40 CFR Part 61, Subpart V, and 40 CFR 63, Subpart H, fugitive emissions sources of HAP shall comply with emissions standards, emissions limitations, testing, records keeping, and reporting requirements.

Respondent's fugitive emissions sources/facilities such as, pumps, valves, and connectors failed to comply with the said requirements, violations of 326 IAC 14 incorporating by reference 40 CFR Part 61, Subpart V, and 40 CFR 63, Subpart H.

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 July 23, 2002

Date:

Felicia A. Robinson

Assistant Commissioner

Office of Enforcement

cc: Jean Bauer, US EPA Region 5

Tippecanoe County Health Department

Jay Rodia, Office of Legal Counsel

Michael Stonik, Office of Enforcement

Jim Thorpe, Office of Air Quality

Enforcement File

Public File

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