VIA CERTIFIED MAIL #

To:    Mr. Robert E. Finn, President         C.T. Corporation System
    RSR Corporation - Quemetco        Resident Agent for
    2777 Stemmons Freeway     RSR Corporation - Quemetco
    Suite 1800                    One North Capitol Avenue
    Dallas, Texas 75207                Indianapolis, Indiana 46204

    Designated representatives of the Indiana Department of Environmental Management (IDEM) conducted inspections of Quemetco, Incorporated, located in Indianapolis, Indiana. IDEM conducted these inspections on June 4 and July 3, 1997.

    The inspections revealed violations of the Indiana Code (IC) and Hazardous Waste Rules under 329 IAC 3.1. This article incorporates July 1, 1995 federal standards for the management of hazardous waste, which have been published in 40 CFR 260 through 40 CFR 273. The violations observed are as stated in Finding No. 5 of the proposed Agreed Order.

    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 for 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. The 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.

    Please contact Ms. Aubrey N. Sherif at 317/233-5970 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 2/27/98                                      David J. Hensel
                                    Director
                                    Office of Enforcement

cc:    Marion County Health Department (without enclosure)
    Office of Legal Counsel (with enclosure)
    Ms. Nancy L. Johnston (with enclosure)
    Mr. John Naddy (with enclosure)            

Converted by Andrew Scriven