VIA CERTIFIED MAIL: ____________     VIA CERTIFIED MAIL: _____________

1.    Dawn Lake Utilities, L.L.C., Kirk G. Caley, C.E.O., and Sole Member, (Dawn Lake Utilities) has owned and operated the Dawn Lake Estates Subdivision WWTP since the assets of the utility, including the plant and the real estate surrounding it, were transferred from Kirk G. Caley and Kay Caley on or about January 21, 1999. Dawn Lake Utilities is authorized by its NPDES Permit No. IN 0039691 (the "Permit") to discharge from the WWTP to receiving waters named Clear Creek in accordance with effluent limitations, monitoring requirements, and other conditions set forth in the Permit.

2.    The Permit was re-issued on March 3, 1995 to Gilbert Caley and Sons, Inc., Mr. Kirk G. Caley, President, with an Effective Date of April 1, 1995, and an Expiration Date of February 28, 2000. The Permit was re-issued based on information contained in an Application for Permit to Discharge submitted to IDEM by Gilbert Caley & Sons, Inc., Kirk G. Caley, President, on February 27, 1986. The Permit was public noticed on November 12, 1994 (Public Notice No. 94-11-A-RD-P), and no comments were received. Part II.B.2 of the current Permit, and Part II.N. of the prior Permit, require, in substance, that the permittee notify IDEM in the event of any change in control or ownership of the facility. IDEM has no record of any notification of change in ownership of the facility after the February 27, 1986 renewal application. However, a submittal to the Utility Regulatory Commission of Indiana on January 25, 1999, indicates that in 1986 Gilbert Caley transferred the real estate where the utility is situated to Kirk G. Caley and

Kay Caley, husband and wife, and in 1992, Gilbert Caley & Sons, Inc. dissolved. Kirk G. Caley, at that time, began operating and managing the utility as a sole proprietorship. Kirk G. Caley and Kay Caley and Dawn Lake Utilities have violated Part II.B.2. of the Permit by their failure to notify IDEM of changes in ownership of the Dawn Lake Estates Subdivision WWTP.

3.    IC 13-30-2-1 states (in part) that a person may not discharge, emit, cause, allow, or threaten to discharge, emit, cause, or allow any contaminant or waste into the environment in any form that causes or would cause pollution that violates or would violate rules, standards, or discharge or emission requirements adopted by the appropriate board under the environmental management laws.

4.    327 IAC 5-2-8(1), and Part II.A.1. of the Permit require, in part, that the permittee must comply with all terms and conditions of the Permit.    Part II.A.5.(a) of the Permit states that, at all times, all facilities shall be operated as efficiently as possible and in a manner which will minimize upsets and discharges of excessive pollutants. 327 IAC 5-2-8(3) states 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.

5.    Inspections of the Dawn Lake Estates Subdivision WWTP were conducted by IDEM staff on September 25, 1998, September 28, 1998, October 6, 1998, October 22, 1998, February 3, 1999, February 22, 1999, February 23, 1999, March 9, 1999, and March 12, 1999 (see attached NPDES Facility Inspection Reports). During each of these inspections IDEM staff noted that at least three areas evaluated were unsatisfactory, including effluent, receiving waters, compliance schedule, facility site review, operation and maintenance, sludge disposal, and flow measurement. These inspections indicate that Kirk G. Caley and Kay Caley failed to comply with Part II.A.5.(a) of the Permit and 327 IAC 5-2-8(3) from September 25, 1998, until February 21, 1999, and that Dawn Lake Utilities, failed to comply with Part II.A.5.(a) of the Permit and 327 IAC 5-2-8(3) from February 21, 1999, until March 12, 1999.

6.    Part II.A.4. of the Permit states that if, for any reason, the permittee does not comply with or will be unable to comply with any effluent limitation specified in the Permit, the permittee shall provide the Regional Administrator and IDEM with the following information, in writing, within five (5) days after becoming aware of such condition;

    a.    a description of the discharge and cause of noncompliance; and

    b.    the period of noncompliance, including exact dates and times; or, if not corrected, the anticipated time the noncompliance is expected to continue, and steps being taken to reduce, eliminate, and prevent recurrence of the noncomplying discharge.

7.    During the inspection conducted by IDEM staff on September 25, 1998, it was noted that the effluent appeared to be raw sewage and had a strong odor, contained paper, and there was a grayish scum at the outfall. The IDEM inspector attempted to contact Mr. Caley and left a message for him. During the inspection conducted by IDEM staff on September 28, 1998, the IDEM inspector noted that Mr. Caley stated that the facility went several inches underwater in late August due to heavy rains. The inspection report notes that the flooding of the WWTP caused numerous operational problems including causing all the electrical units to be out of service. It was also noted in the inspection report that Mr. Caley had not reported these violations to IDEM. On January 25, 1999, IDEM conducted a site visit to the WWTP and noted that the blowers and air compressor were out of service. It was observed that the aeration tank had settled out with large amounts of clumping sludge leaving the plant. The inspector noted that there was no treatment at that time. On January 28, 1999, IDEM staff was able to make contact with Mr. Caley and Mr. Caley stated that the blowers and air compressor went out of service over the previous weekend. IDEM has no record of any written report concerning this non-compliance event. Therefore, Dawn Lake Utilities violated 327 IAC 5-2-8(1), and Part II.A.1 and Part II.A.4 of the Permit in that it failed to report the events of noncompliance with the Permit within 5 days of becoming aware of the condition.

8.    Part I.B.8. of the Permit states, in part, that all records and information resulting from the monitoring activities required by the Permit, including all records of analyses performed and calibration and maintenance of instrumentation and recording from continuous monitoring instrumentation, shall be retained for a minimum of three (3) years. In cases where the original records are kept at another location, a copy of all such records shall be kept at the permitted facility.

9.    During the inspections conducted by IDEM staff on January 25 and 29, 1999, and February 3, 1999 it was found that there were no records on site, and on the February 3, 1999, inspection report the records and reports were evaluated as unsatisfactory. The failure to retain records or copies of the records at the permitted facility for three years is a violation of 327 IAC 5-2-8(1), and Part II.A.1 and Part I.B.8. of the Permit.

10.    327 IAC 5-2-8(8) states, in part, that the permittee shall comply with monitoring, recording, and reporting requirements established in accordance with sections 13 through 15 of this rule. 327 IAC 5-2-15 provides that NPDES permittees shall report to the commissioner, using discharge monitoring reports as required by the permit. Part I.B.3. of the Permit states that the permittee shall submit monitoring reports to the Indiana Department of Environmental Management containing results obtained during the previous month and shall be postmarked no later that the 28th day of the month following each completed monitoring period.

11.    The record review indicates that monthly reports for the Dawn Lake Estates Subdivision WWTP were not submitted to IDEM by the 28th day of the month following each completed

monitoring period for the period from April 1996 through December 1998. On February 23, 1999, monthly reports were submitted to IDEM for the Dawn Lake Estates Subdivision WWTP for the months from April 1996 through December 1998. Therefore, Kirk G. Caley and Kay Caley, as owners of the WWTP before January 21, 1999, have violated 327 IAC 5-2-15 and Part I.B.3. of the Permit in that they failed to submit monthly reports to IDEM by the 28th day of the month follow each completed monitoring period for the period from April 1996 through December 1998.

12.    327 IAC 2-4-1 states, in part, that every person, firm or corporation that discharges wastewaters to the waters of the State of Indiana shall submit to the commissioner monthly reports of operation, which shall include flow measurements and wastewater characteristics. 327 IAC 5-2-13(2) states, in part, that all permittees shall monitor, as required in the permit, the volume of wastewater flow at monitoring points specified in the permit, including the final effluent flow from each point source. Part I.A. of the Permit requires the weekly average and the monthly average flow to be reported on monthly reports. Part I.B.1. states that samples and measurements taken as required in the permit shall be representative of the volume and nature of the monitored discharge. Part I.B.4.b.(4) which defines flow proportioned composite samples and requires, in part, that the discharge flow rate be recorded at the time each individual sample is taken.

13.    The record review of monthly reports submitted by Kirk G. Caley and Kay Caley, as owners of the WWTP before January 21, 1999, indicates that on each monthly report for the period from April 1996 through December 1998, a flow of .006 million gallons per day (MGD) was reported, indicating: A) that the measurements for flow were estimated and not representative of the volume of the discharge, B) that the discharge flow rate was not recorded at the time of each individual sample taken as required for composite samples, C) that weekly average and monthly average flow rates were not measured and reported as required by the Permit, and D) that the monthly reports of operation did not include flow measurements. These failures to monitor and report the flow are violations of 327 IAC 2-4-2, 327 IAC 5-2-13(2) and the above noted parts of the Permit.

14.    Part I.D. of the Permit contains a schedule for the Dawn Lake Estates Subdivision WWTP to meet new effluent limitations for residual chlorine. The schedule required that a construction permit application was to be submitted within 14 months of the effective date of the Permit, the initiation of construction was to commence no later that 22 months of the effective date of the Permit, the construction was to be completed within 29 months of the effective date of the Permit, and the permittee was to comply with all final requirements no later that 30 months from the effective date of the permit. As of April 1, 1999, 48 months after the effective date of the Permit, the Dawn Lake Estates Subdivision WWTP has no dechlorination facilities and no means to meet its new effluent limitations for residual chlorine. Therefore Kirk G. Caley and Kay Caley, as owner of the WWTP before January 21, 1999, violated Part I.D. of the Permit in their failure to construct dechlorination facilities at the WWTP.

15.    Part II.A.9. of the Permit states that in order to maintain compliance with the effluent limitations and prohibitions of the permit, the permittee shall either provide an alternative power source sufficient to operate the facilities, or halt, reduce or otherwise control the discharge in order to maintain compliance with the effluent limitations and conditions of the permit. The Dawn Lake Estates Subdivision WWTP has no alternative power source and no means to halt, reduce or otherwise control the discharge to maintain compliance if the primary power is lost, and during inspections conducted by IDEM staff on September 28, 1998, it was noted that there was no electricity at the facility. Therefore, Kirk G. Caley and Kay Caley, as owner of the WWTP before January 21, 1999, violated Part II.A.9. of the Permit.

16.    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."

17.    During inspections conducted by IDEM staff on September 28, 1998, October 6, 1998, October 22, 1998, January 25, 1999, January 29, 1999, February 3, 1999, February 9, 1999, February 22, 1999, February 23, 1999, and March 15, 1999, solids were observed in the receiving stream. Therefore, Kirk G. Caley and Kay Caley, as owner of the WWTP before January 21, 1999, and Dawn Lake Utilities, L.L.C, Kirk G. Caley, C.E.O., and Sole Member, owner of Dawn Lake Utilities after January 21, 1999, have violated 327 IAC 2-1-6(a), in that they have caused violations of the minimum water quality conditions.

18.    Part I.A. of the Permit requires, in part, that the permittee limit the discharge of CBOD₅ to a concentration of 10 mg/l for monthly average and 15 mg/l for maximum weekly average. It also requires that the permittee limit the discharge of TSS to 10 mg/l for monthly average and 15 mg/l for maximum weekly average.

19.    Monthly reports submitted for the Dawn Lake Estates Subdivision WWTP reported the following concentration exceedences for CBOD₅ and TSS from May 1996 through January 1999,

all of which are in violation of Part I.A. of the Permit, 327 IAC 5-2-8(1) and Part II.A. of the Permit, and IC 13-30-2-1 ("***" indicates values reported within the required limit):

Reporting        CBOD₅ Concentration (MG/L)    TSS Concentration (MG/L)
Month         Monthly Ave. Weekly Ave. Max.    Monthly Ave. Weekly Ave. Max.
         Limits    (10 mg/l)    (15 mg/l)        (10 mg/l)    (15 mg/l)

May 1996        13.8        24.8            40.4        100.0
June 1996        17.7        20.1            62.0        94.0
July 1996        26.8        45.0            52.2        85.0
August 1996        29.1        38.2            43.0        65.0
September 1996    30.3        46.2            48.0        88.0
October 1996        42.6        50.0            26.5        35.0
November 1996    33.8        46.0            24.0        36.0
December 1996    26.0        32.6            31.0        44.0
January 1997        20.9        26.0            26.2        29.2
February 1997    20.5        23.9            23.1        25.0
March 1997        37.8        50.0            51.5        102.0
April 1997        31.6        45.0            38.4        58.5
May 1997        15.1        30.0            44.4        55.0
June 1997        16.3        28.5            44.0        57.0
July 1997        22.5        46.0            37.8        58.0
August 1997        23.2        29.3            32.0        41.0
September 1997    23.0        25.8            20.9        26.0
October 1997        21.2        27.0            19.6        26.0
November 1997    22.1        34.7            15.6        24.0
December 1997    ***        ***            ***        ***
January 1998        ***        ***            13.6        18.0
February 1998    17.3        26.4            21.6        26.0
March 1998        30.5        70.5            24.7        49.0
April 1998        24.4        56.0            21.2        42.0        
May 1998        116.0        200.0            93.8        160.0
June 1998        28.3        40.2            25.5        37.6
July 1998        26.1        63.0            34.6        43.0
August 1998        195.0        228.0        `    194.0        241.0
September 1998    193.0        220.0            157.0        185.0
October 1998        144.0        180.0            129.0        171.0
November 1998    97.3        145.0            79.0        93.0
December 1998    74.8        76.0            103.0        132.0
January 1999        44.2        53.6            78.3        108.0

20.    Part I.A.1. of the Permit requires the permittee to monitor the pollutant loading (mass) for CBOD₅ and TSS. No loading values were reported for nearly half of 1ave violated Part I.A.1. of the Permit by their failure to monitor the pollutant loadings.

    In accordance with IC 13-30-3-3, the Commissioner is required to notify you in writing that the Commissioner believes that violations exist and offer the company 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.

    Please contact Terry Ressler, at 317/232-8433 within fifteen (15) days after receipt of this Notice regarding your intent to settle this matter. If you are 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:

Date:    ____________________            __Signed 4/22/99_______
                            Felicia Robinson George
                            Assistant Commissioner of Enforcement

cc:    U.S. EPA Region V, Water Section
    Huntington County Health

Converted by Andrew Scriven