FED EX PRIORITY                 FED EX PRIORITY
    OVERNIGHT                     OVERNIGHT

NOTICE OF VIOLATION


To:    Mr. George Bredewater            To:    Mr. George Miller
    Water Utility Board President                Water Utility Manager
    Brown County Water Utility                Brown County Water Utility
    6087 E Christiansburg Road                 2349 State Rd 45
    Nashville, IN 47448                    Helmsburg, Indiana 47435

Cause No. B-2411

    On November 18, 1998, a representative of the Indiana Department of Environmental Management (IDEM) was driving in the area of Christenburg Road south of Pikes Peak (the "Site") when he discovered Warford Construction Company installing 1600 feet of 3 inch water main in a farm field along the side of the road. Construction workers at the Site told the IDEM representative that George Miller, Water Utility Manager, instructed Warford Construction to put in the line and he would apply for the permit later. There is no record of a construction permit application having been submitted to IDEM for review.

    The IDEM representative also noted a stream crossing at the Site which had no encasement and no valving on either side of the stream. The failure to install this equipment in the water line creates a threat to the public health.

    Based on the above noted observations and information you were found in violation of the following provision of the Indiana Code (IC):

IC 13-18-16-1 Public Water Supplies - Construction Permit Requirement

    (a)    A permit is required for the construction, installation, or modification of:

        (1)    sources;

        (2)    facilities;

        (3)    equipment; or

        (4)    devices; of a public water supply, including water distribution systems.

    (b)    Plans and specifications for the construction, installation, or modification of sources, facilities, equipment, or devices of a public water supply must be submitted to the commissioner with a permit application. The plans and specifications must be complete and of sufficient detail to show all proposed construction changes, or modifications that may affect the sanitary quality, chemical quality, or adequacy of the public water supply involved. The applicant shall supply any additional data or material considered appropriate by the commissioner to a review of the plans and specifications.

    (c)    Unless otherwise provided in the rules adopted under section 8(b) of this chapter, plans and specifications must be submitted to the commissioner with the permit application for water distribution systems.

    (d)    Construction, installation, or modification of a public water supply may not begin until the commissioner has issued a permit under subsection (a).

    (e)    In determining whether to issue a permit under this section, the commissioner shall proceed under IC 13-15.

    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.

    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.