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STATE OF INDIANA    )        BEFORE THE INDIANA DEPARTMENT
                )    SS:    OF ENVIRONMENTAL MANAGEMENT
COUNTY OF MARION    )

COMMISSIONER OF THE DEPARTMENT    )
OF ENVIRONMENTAL MANAGEMENT,    )
                            )
        Complainant,                )
                            )
            v.                )CAUSE NO. 1998-3129-A or A-4173
                            )
MERCHANDISING EQUIPMENT GROUP,    )
DIVISION OF STEELWORKS, INC.        )
                            )
        Respondent.                )            

AGREED ORDER

    The Complainant and the Respondent desire to settle and compromise this action without hearing or adjudication of any issue of fact or law, and consent to the entry of the following Findings of Fact and Order.

I. FINDINGS OF FACT

    1.    Complainant is the Commissioner (hereinafter referred to as "Complainant") of the Indiana Department of Environmental Management, a department of the State of Indiana created by IC 13-13-1-1.

    2.    Respondent is Merchandising Equipment Group, Division of SteelWorks, Inc. (hereinafter referred to as "Respondent"), which owns and operates a metal shelving manufacturing facility at 502 South Green Street, Cambridge City, Indiana (the Site).

    3.    The Indiana Department of Environmental Management ("IDEM") has jurisdiction over the parties and subject matter of this action.

    4.    Pursuant to IC 13-30-3-3, IDEM issued a Notice of Violation via Certified Mail to:

         Douglas A. Smith, President        Corporation Service Company,
        SteelWorks, Inc.            Resident Agent for SteelWorks, Inc.
        750 North St. Paul, Suite 1200    251 East Ohio Street, Suite 500
        Dallas, Texas 75201            Indianapolis, Indiana 46204    

    5.    Rule 326 IAC 2-7-3 requires a Part 70 source to not operate after the time that it is required to submit a timely and complete Part 70 permit application if that source fails to submit said application.

    6.    Rule 326 IAC 2-7-4 requires a Part 70 source to submit a timely and complete application no more than twelve (12) months after United States Environmental Protection Agency approval of the Part 70 program. That due date was December 13, 1996.

    7.    Designated representative(s) of IDEM conducted an inspection of the Site on January 23, 1998, and noted that the Respondent was operating and that the Respondent submitted the Part 70 application to IDEM on July 31, 1997. Those activities of the Respondent are violations of 326 IAC 2-7-3 and 326 IAC 2-7-4 respectively.

          Rule 326 IAC 8-2-6 which requires that no owner or operator of a metal furniture coating line cause, allow, or permit the discharge into the atmosphere any volatile organic compounds (VOCs) in excess of 3.0 pounds per gallon, excluding water, delivered to the coating applicator from prime and topcoat or single-coat operations.

          Designated representative(s) of IDEM conducted a records review in August, 1997, of the respondent's Part 70 permit application. During that records review it was noted that the Respondent used a white bake enamel coating with a VOC content greater than 3.0 pounds per gallon in its production.

          Written communication from the Respondent to IDEM in February, 1999, showed that a white bake enamel coating with a VOC content of 5.37 pounds per gallon was used by the Respondent in its production from the first calendar quarter of 1992 through the second calendar quarter of 1998.

          Respondent converted its VOC-based coating operation to a powder-based coating operation in June, 1998, and is now exempt from air pollution permit requirements.     

    12.    In recognition of the settlement reached, Respondent waives any right to administrative and judicial review of this Agreed Order.

II. ORDER

    1.    This Agreed Order shall be effective ("Effective Date") when it is approved by the Complainant or his delegate, and has been received by the Respondent. This Agreed Order shall have no force or effect until the Effective Date.

    2.    Respondent is assessed a civil penalty of Thirty-Nine Thousand Five Hundred Dollars ($39,500). Said penalty amount shall be due and payable to the Environmental Management Special Fund in three (3) consecutive bi-monthly payments of Thirteen Thousand One Hundred Sixty-Six Dollars ($13,166), Thirteen Thousand One Hundred Sixty-Six Dollars ($13,166), and Thirteen Thousand One Hundred Sixty-Eight Dollars ($13,168) respectively. The first payment shall be due within thirty (30) days of the Effective Date of this Agreed Order.

    3.    Civil penalties are payable by check to the Environmental Management Special Fund. Checks shall include the Cause Number of this action and shall be mailed to:

            Cashier
            IDEM
            100 N. Senate Avenue
            P. O. Box 7060
            Indianapolis, IN 46207-7060

    4.    In the event that the civil penalty required by paragraph 2 is not paid within thirty (30) days of the Effective Date of this Agreed Order, Respondent shall pay interest on the unpaid balance at the rate established by IC 24-4.6-1-101. The interest shall continue to accrue until the civil penalty is paid in full.

    5.    This Agreed Order shall apply to and be binding upon the Respondent, its officers, directors, principals, agents, successors, subsidiaries, and assigns. The Respondent's signatories to this Agreed Order certify that they are fully authorized to execute this document and legally bind the parties they represent. No change in ownership, corporate, or partnership status of the Respondent shall in any way alter its status or responsibilities under this Agreed Order.

    6.    In the event that any terms of the Agreed Order are found to be invalid, the remaining terms shall remain in full force and effect and shall be construed and enforced as if the Agreed Order did not contain the invalid terms.
            
    7.    The Respondent shall provide a copy of this Agreed Order, if in force, to any subsequent owners or successors before ownership rights are transferred. Respondent shall ensure that all contractors, firms and other persons performing work under this Agreed Order comply with the terms of this Agreed Order.

    8.    This Agreed Order shall remain in effect for a period of two years after the Effective Date of this Agreed Order.
                                        

TECHNICAL RECOMMENDATION:        STEELWORKS, INC.:
Department of Environmental Management

By:     _________________________        By: _________________________
    David P. McIver
    Chief, Air Section            
    Office of Enforcement            Printed: ______________________
    
                            Title: ________________________                         
Date: ________________________            Date: ________________________

COUNSEL FOR COMPLAINANT:            COUNSEL FOR RESPONDENT:
Department of Environmental Management

By: _________________________            By: ________________________
Office of Legal Counsel                
Department of Environmental Management

Date: _______________________            Date: ______________________

APPROVED AND ADOPTED BY THE INDIANA DEPARTMENT OF ENVIRONMENTAL MANAGEMENT THIS _____ DAY OF ____________________, 199___.

                            
                            For the Commissioner:
                            

                            Signed on 02/16/2000
                            Felicia A. Robinson
                            Assistant Commissioner
                            Office of Enforcement
                            

Converted by Andrew Scriven