VIA CERTIFIED MAIL:
To: Mr. Brian Reichart, President
Red Gold, Incorporated
P.O. Box 83
Elwood, IN 46036
Designated representatives of the Indiana Department of Environmental Management
(IDEM) and the Indiana Department of Natural Resources (IDNR) have conducted inspections
and a record review of the Red Gold, Incorporated facility located in the Town of Orestes,
Madison County, Indiana. The inspections and record review indicate that Red Gold,
Incorporated (Red Gold) caused the discharge of contaminants from its wastewater treatment
facility to waters of the State causing pollution and a violation of minimum water quality
conditions in violation of provisions of its NPDES permit, Indiana Code (IC) and Indiana
Administrative Code (IAC).
Red Gold was issued NPDES Permit No. IN 0036587 (the NPDES permit) on May 30,
1990, which had an effective date of July 1, 1990. Red Gold submitted timely information and
forms as necessary to renew the NPDES permit, and therefore continues to have authorization to
discharge to receiving waters consisting of an unnamed ditch tributary to Lilly Creek in
accordance with effluent limitations, monitoring requirements, and other conditions set forth in
the NPDES permit. The NPDES permit authorizes discharge from two outfalls; Outfall 001 and
Outfall 003. Discharge from Outfall 001 is limited solely to noncontact cooling water.
Discharge from Outfall 003 is from Red Gold's Class A industrial wastewater treatment plant.
On July 12, 1994, IDEM issued a construction permit (Permit Approval No. 2284) to Red
Gold to add two anaerobic cells to its wastewater treatment facility and to install a transfer pump
station, an effluent pump station including force main, effluent gravity sewer to Lilly Creek and a
flow meter. The existing cells were to stay on line. At the time, Red Gold's NPDES permit was
not modified to include the additional outfall.
On October 30, 1997, Red Gold submitted to IDEM a request for a review of the
necessity to modify its NPDES permit. Red Gold had proposed to move an existing outfall
approximately 600 feet upstream from the existing outfall location.
On November 18, 1997, IDEM issued a letter to Red Gold concerning Red Gold's
October 30, 1997 permit modification request which stated that the change in the outfall location
would not significantly change any of the conditions on which the NPDES permit limits were
based and therefore, the NPDES permit would not need to be modified in any way.
On December 18, 1997, IDEM issued a construction permit (Permit Approval No. 2640)
to Red Gold for modifying the outfall location.
On March 10, 1998, Red Gold submitted a letter to IDEM including a request to modify
the NPDES permit to change the outfall location from the location referenced per construction
permit No. 2284 to the location requested and approved per construction permit No. 2640.
IDEM has not reissued Red Gold's NPDES permit.
As a result of construction authorized by construction permits No. 2284 and No. 2640,
the Red Gold wastewater treatment plant now has three outfalls: Outfall 001 (noncontact cooling
water), Outfall 003 (the original discharge to the tributary of Lilly Creek from the industrial
wastewater treatment), and the new discharge location to Lilly Creek from the industrial
wastewater treatment facility that was constructed under construction permits No. 2284 and No.
2640.
Part I.2. of the NPDES permit requires, in part, that discharge from outfall 003 be limited
and monitored so that the discharge is free of substances that are in amounts sufficient to be
unsightly or deleterious or which produce color, odor, or other conditions in such a degree as to
create a nuisance. These permit requirements also apply to the discharge location constructed
under construction permits No. 2284 and No. 2640.
327 IAC 5-2-8(8) and Part II.B.1. of the NPDES permit require that the permittee shall at
all times maintain in good working order and efficiently operate all facilities and systems (and
related appurtenances) for collection and treatment which are installed or used by the permittee
and which are necessary for achieving compliance with the terms and conditions of the permit.
IC 13-18-4-5 states, "A person may not:
(1) throw, run, drain, or otherwise dispose into any of the streams or waters of
Indiana; or
(2) cause, permit, or suffer to be thrown, run, drained, allowed to seep, or otherwise
disposed into any waters;
any organic or inorganic matter that causes or contributes to a polluted condition of any waters,
as determined by a rule of the board adopted under sections 1 and 3 of this chapter."
327 IAC 2-1-6(a) states, in part, "The following are minimum water quality conditions:
(1) All waters at all times and at all places, including the mixing zone, shall meet the
minimum conditions of being free from substances, materials, floating debris, oil, or
scum attributable to municipal, industrial, agricultural, and other land use practices, or
other discharges;
(A) that will settle to form putrescent or otherwise objectionable deposits;
(B) that are in amounts sufficient to be unsightly or deleterious;
(C) that produce color, visible oil sheen, odor, or other conditions in such
degree as to create a nuisance;
(D) which are in amounts sufficient to be acutely toxic to, or to otherwise
severely injure or kill aquatic life, other animals, plants, or humans...
(E) which are in concentrations or combinations that will cause or contribute
to the growth of aquatic plants or algae to such degree as to create a
nuisance, be unsightly, or otherwise impair the designated uses."
Red Gold's violations of the above noted provisions of the Indiana Code and Indiana
Administrative Code and its NPDES permit are based on the following:
1) On February 10, 1998, an IDNR conservation officer was contacted regarding a
red substance in Lilly Creek south of the Town of Orestes, Indiana. The conservation
officer noted on the inspection report that Lilly Creek and Pipe Creek had been polluted,
that 4 miles of stream were affected, and that Red Gold was the polluter. The
conservation officer observed and noted on a Report of Water Pollution (DNR case
number 98-48-0952203), in part:
At approximately 15:00 hrs. (2/10/98) I arrived in the Orestes area and
proceeded to the bridge over Lilly Creek about 1/4 Mile east of CR 300 W. on
C.R. 1100 N. A visual inspection of the creek at this location showed a red tint to
the water. On a tip from a passerby, I proceeded to the Red Gold plant located in
Orestes, IN. A short while later I inspected the treatment facilities (for tomato
processing by-products) of Red Gold, Inc. finding water of the same color and
consistency as in Lilly Creek.
I walked around the Red Gold facility and found a small pipe [Outfall 003]
with a steady flow of this red water being issued from it. This flow fed into a
small creek which in turn flowed into Lilly Creek.
Further inspection revealed a partially submerged "pump" located "in" Lilly Creek with a large volume of this contaminated water coming out of the pump; [It] directly discharged into Lilly Creek [the new outfall constructed under
construction permits No. 2284 and No. 2640]. [The "pump" referred to is actually
a concrete discharge dispersal structure.]
At this point, I took several pictures of the site and situation. Next, I
notified Red Gold that the "pump" needed to be shut down, which an employee
(Tina Anderson) did at that time.
After having the system shut down I notified North Region who in turn
notified IDEM.
On 2/12/98 I made contact with Donald McWilliams who stated that he
and his friends had found several dying fish in Pipe Creek near Frankton starting
on Feb. 7, 1998.
Therefore on 2/12/98 I began looking in Pipe Creek for dead fish. Mr.
McWilliams stated that all the fish had been "suckers". My inspection showed the
same, however only eight fish were located. I did not do a fish count as it had
been so long since the fish had begun dying.
2) On February 10, 1998, IDEM staff received notification from an IDNR
conservation officer of a spill at CR 1150 N. and Superior Street in Orestes. IDEM staff
noted on the Initial Incident Report Log (Incident No. 9802055) that the spill was
considered significant and involved Lilly Creek and Pipe Creek. It was also noted on the
report that Red Gold was the suspected responsible party. The spilled material was noted
as tomato byproducts and it was noted that it was the result of an intentional discharge
and that it caused a water quality violation. On February 11, 1998, IDEM staff conducted
a site visit to the Red Gold facility and was informed by Red Gold workers that a crew
was repairing a pump and that when the pump was brought on line on February 10, 1998,
it was mistakenly allowed to operate unregulated for a period of time. As noted in item 1
above, the pump was turned off when the conservation officer informed Red Gold
employees of the need to do so.
3) On February 13 and 16, 1998, IDEM staff inspected the Red Gold facility and its
receiving waters. On February 13, 1998, IDEM staff observed and noted on the
inspection report that samples from Lilly Creek at the bridge on C.R. 300 W. were high in
ammonia concentration (11.5 mg/l) as recorded from a field analysis, and a red-orange
tint was noted in the waters of the creek. It was also observed that the effluent from Red
Gold lagoon No. 5 [Outfall 003] was orange in tint. IDEM staff requested that Red Gold
cease the discharge due to the high ammonia in Lilly Creek and Red Gold immediately
complied with the request. Dead fish were noted and photographed at bridges over Pipe
Creek, including S.R. 128 (the furthest site downstream) C.R. 575 W., and two other
locations. IDEM staff observed the dead fish were on gravel bars or had sunk.
During the February 16, 1998, inspection IDEM staff reviewed Red Gold
discharge monitoring records and noted that Red Gold reported an ammonia
concentration of 49.6 mg/l for an effluent sample taken in December of 1997, and
ammonia concentrations of 113 mg/l for an effluent sample taken on January 19, 1998,
and 91.1 mg/l for effluent samples taken on January 29, 1998. IDEM staff also noted that
both settling lagoons, No. 4 and No. 5, were very red-orange in color.
As indicated by the above noted IDNR Report of Water Pollution (DNR case number 98-
48-0952203), IDEM Initial Incident Report Log (Incident No. 9802055), and IDEM inspection
reports for inspections conducted on February 13 and 16, 1998, Red Gold has violated:
A) Part I.2. of the NPDES permit in that Red Gold failed to limit and monitor the
discharge from outfall 003 and the new outfall constructed under construction permits
No. 2284 and No. 2640 so that the discharge is free of substances that are in amounts
sufficient to be unsightly or deleterious or which produce color, odor, or other conditions
in such a degree as to create a nuisance. On February 10, 1998, the IDNR conservation
officer observed the small pipe with a steady flow of red water being issued from it. This
flow fed into a small creek which in turn flowed into Lilly Creek. Also on February 10,
1998, the conservation officer observed a discharge from the partially submerged "pump"
located "in" Lilly Creek with a large volume of this contaminated water coming out of the
pump directly discharging into Lilly Creek. The conservation officer observed that Lilly
Creek at this location showed a red tint.
B) 327 IAC 5-2-8(8) and Part II.B.1. of the NPDES permit in that Red Gold failed to
maintain in good working order and efficiently operate all facilities and systems (and
related appurtenances) for collection and treatment which are installed or used by the
permittee and which are necessary for achieving compliance with the terms and
conditions of the permit. Red Gold failed to regulate the discharge from the pump when
it was brought on line on February 10, 1998, and allowed the pump to operate
unregulated for a period of time.
C) IC 13-18-4-5 in that it disposed into the waters of Indiana organic matter
(wastewater from Red Gold's wastewater treatment plant) that caused or contributed to a
polluted condition of Lilly Creek, the small tributary which flowed into Lilly Creek, and
Pipe Creek.
D) 327 IAC 2-1-6(a) in that it caused violations of minimum water quality
conditions. As noted by IDNR and IDEM staffs, Red Gold's unregulated discharge of
wastewater for a period of time caused the red and red-orange tint in the creek observed
by IDEM and IDNR staffs, caused or contributed to the high concentration of ammonia
noted in the field sample taken on February 13, 1998, by IDEM staff, and caused or
contributed to the dead fish observed by IDNR and IDEM staffs.
In accordance with IC 13-30-3-3, the Commissioner is required to notify Red Gold in
writing that he believes a violation exists and offer it an opportunity to enter into an Agreed
Order that provides for the actions required to correct the violations and for 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 receipt of this Notice, the
Commissioner may issue an order pursuant to IC 13-30-3-4 that contains the actions Red Gold
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.
Entering into an Agreed Order will prevent the issuance of an 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
timely 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 give you the
opportunity to present any mitigating factors that may be relevant to the violations. In addition,
as provided in IC 13-30-3-3, you may enter into an Agreed Order without admitting that the
violation occurred.
Please contact Terry Ressler, Enforcement Case Manager at 317/232-8433 within fifteen
(15) days after receipt of this Notice regarding Red Gold's intent to settle this matter. If Red
Gold is willing to resolve this matter as provided for in the enclosed Agreed Order, please sign
and return it to the Office of Enforcement at the above address within the sixty (60) day
settlement period.
For the Commissioner:
Dated: ____________________ __Signed 10/22/98_________
Felicia Robinson George
Assistant Commissioner
Office of Enforcement
Enclosure
cc: Madison County Health Department
U.S. EPA, Region 5
Converted by Andrew Scriven