VIA CERTIFIED MAIL# ____________________

To:    Jeff Cron                    C. T. Corporation System                                     Environmental Manager            Registered Agent for:
    ALCOA Generating Facility            ALCOA Generating Facility
    4700 Darlington Road            One North Capital
    Newburgh, Indiana 47630            Indianapolis, IN 46204
    

    The review of the emissions test report revealed a violation of Construction Permit # CP- 173-0002, Operation Condition No. 5. Operation Condition No. 5 requires that pursuant to 326 IAC 6-2-3(b) the total particulate emissions to the atmosphere from each boiler shall be limited to 0.228 lbs/MMBtu heat input. This violation is based on the fact that the results of the source test for Unit 1 were .3407 lbs/MMBtu heat input of particulate emissions, thereby violating Operation Condition No. 5 of Construction Permit # CP 173-2087.

    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 Craig Henry at 317/233-1136 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 May 21, 1997
                            Patrick Carroll
                            Director
                            Office of Enforcement

cc:    Linda Hamsing, US EPA Region 5
    Warrick County Health Department
    OAM Public File
    

Converted by Andrew Scriven