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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 NOS. A-4294 & A-4326
                            )
DECATUR CASTING DIVISION OF        )
HAMILTON FOUNDRY & MACHINE CO.,    )
                            )
        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 Decatur Casting Division of Hamilton Foundry & Machine Co. (hereinafter referred to as "Respondent"), which owns and operates a grey iron foundry at 822 Dayton Avenue, located in Decatur, Indiana.

    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:

            Dennis Borda, Vice President
            Hamilton Foundry & Machine Company

            Decatur Casting Division
            822 Dayton Avenue
            Decatur, IN 46733

    5.      Agreed Order A-3608 became effective on September 22, 1997. Paragraph one (1) of the Order required Respondent install a baghouse on the sand system, designated as E6. Respondent failed to install the baghouse by the deadline of May 1, 1998, thereby violating paragraph one (1) of Agreed Order A-3608.

    6.      On August 25, 1998, Respondent installed and commenced operation of a baghouse for the sand system.

    7.      Paragraph one (1) of Agreed Order, A-3608, required Respondent install a baghouse, designated as E7, on the Hunter and Osborne cooling/pouring lines by May 1, 1998. Respondent failed to install the baghouse by the deadline, thus violating paragraph one (1) of Agreed Order A-3608.

         On December 31, 1998, Respondent commenced operation of a baghouse system for the Osborne pouring/cooling line.

         In April, 1999, Respondent installed and commenced operation of a baghouse system for the Hunter pouring/cooling line.

         Rule 326 IAC 5-1 prohibits visible emissions from exceeding forty percent (40%) opacity in twenty-four (24) consecutive readings.

         On July 2, 1998, an IDEM inspector visited Respondent's grey iron foundry in Decatur, Indiana. During the visit, the inspector observed four occurrences in which the six minute average of visible emissions from the electrostatic precipitator (ESP) stack exceeded forty percent opacity (40%), thereby violating 326 IAC 5-1.

         On August 11, 1998, an IDEM inspector observed five occurrences of the six minute average of visible emissions exceeding forty percent opacity from Respondent's ESP stack, thus violating 326 IAC 5-1.

    13.    On October 2, 1998, an IDEM inspector observed the six minute average of visible emissions exceeding forty percent opacity from Respondent's ESP stack, thereby violating 326 IAC 5-1.            

    14.      On November 22, 1998, Respondent installed and commenced operation of a cupola optic system. The optic system signals when the cupola is fully charged, thus preventing overcharging the cupola. Overcharging the cupola results in heightened opacity from Respondent's ESP stack.            

    15.    On June 29, 1999, Respondent removed the Hunter pouring/cooling line from their plant located in Decatur, Indiana.

    16.    On December 1, 1999, Respondent conducted source tests for particulate matter (PM) emissions on their Osborne pouring/cooling line and the sand system.
         
    17.    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.    Within ninety (90) days of the Effective Date of this Order, Respondent shall conduct a source test on the Dideon #2 conveyor for particulate matter emissions in accordance with 326 IAC 3-6.
         3.    (a)    By May 1, 2000, Respondent shall provide certified visible emission reader(s), who may be employees of Respondent or independent contractors, to self monitor the ESP stack for compliance with 326 IAC 5- 1.

             Observations shall be made a minimum of four (4) hours per week during the times when the cupola is in operation. The time of observations shall be staggered and not completed in a single day. Each set of visible emissions readings shall be at minimum six minutes in length. Such observations shall be in accordance with U.S. EPA Reference Method 9. Copies of each evaluation shall be sent to the Office of Enforcement, Air Section within thirty (30) days of the end of the calendar quarter in which the observations occurred. Respondent shall calculate, summarize and submit original data to IDEM, including the number of exceedences of the limit. The visible emissions observations shall continue until May 1, 2001.
    

    4.    By April 15, 2000, Respondent shall apply dust suppressant on the scrap yard for reduction of fugitive dust. Applications shall be made between the months of April through October ending on October 31, 2001. The dust suppressant shall be applied on an "as needed basis" but no less than once per month. Respondent shall maintain written records of the dust suppressant applications. The written records shall be made readily available upon an IDEM inspector's request. Respondent shall comply with 326 IAC 6-4 at all times even during periods when application of dust suppressant is not required by this Agreed Order.

    5    All submittals required by this Agreed Order, unless notified otherwise in writing, shall be sent to:

        J. Brian Eaton, Enforcement Case Manager
        Office of Enforcement
        Indiana Department of Environmental Management
        100 N. Senate Avenue
        P. O. Box 6015
        Indianapolis, IN 46206-6015

    6.    Respondent is assessed a stipulated penalty of Three Hundred and Twenty-Five Thousand Dollars ($325,000) per the terms of Agreed Order A-3608. In addition, Respondent is assessed a civil penalty of Twenty-Four Thousand Dollars ($24,000) for the violations cited in paragraphs even (11), twelve (12), and thirteen (13) of the Findings of Fact. The total penalty assessed is Three Hundred and Forty-Nine Thousand Dollars ($349,000).

    7.    Within one year of the Effective Date of this Order, Respondent shall complete a Supplemental Environmental Project (SEP) which involves the installation and operation of an electric induction furnace at Respondent's grey iron foundry in Decatur, Indiana. The electric induction furnace will result in a decrease of particulate matter, sulfur dioxide, and carbon monoxide emissions. The estimated cost of the electric induction furnace is $1,180,000. The cupola shall be permanently disabled within six months of the electric induction furnace's operation and shall not at any time be operated simultaneously with the electric induction furnace.

        In the event that the Respondent determines that it is not able to complete the SEP within one year of the Effective Date of this Order, Respondent may request an extension of this implementation schedule. This request shall be submitted to IDEM within thirty (30) days prior to the expiration of the one year implementation requirement. The decision to grant or deny this extension shall be solely at IDEM's discretion. Said decision shall be communicated to the Respondent.

    8.    Respondent shall pay a portion of the civil penalty stated in paragraph six (6) above in the amount of Sixty-Nine Thousand and Eight Hundred Dollars ($69,800). Payments shall be made according to the following schedule plan:

            i.     $9,800 due by August 1, 2000
            ii.    $10,000 due by November 1, 2000
            iii.      $15,000 due by February 1, 2001
            iv.      $17,000 due by May 1, 2001
            v.      $18,000 due by August 1, 2001.            
                      
    9.    Upon completion of the SEP, Respondent shall submit to IDEM documentation verifying date of completion and costs. Timely and satisfactory completion of the SEP will cancel the remaining $279,200 civil penalty. If the SEP is not completed in accordance with this agreement and within the specified time period, the Respondent agrees to pay the remaining amount of the civil penalty plus interest at the rate established by IC 24-4.6-1-101 calculated from thirty (30) days after the Effective Date of this Order.

    10.    Respondent shall submit to IDEM's Office of Air Management a source test protocol within sixty (60) days of the completion of the SEP or issuance of the Part 70 Permit, whichever is the later. Within seventy-five (75) days of IDEM's approval of a testing protocol, Respondent shall conduct a source test at the electric induction furnace's emission control device for particulate matter emissions of size less than ten (10) microns (PM10). The PM10 emissions shall be less than two pounds per hour (2.00 lbs/hr). The source test shall be conducted in accordance with 326 IAC 3-6 and procedures approved by IDEM's Office of Air Management.
        Respondent shall pay a daily stipulated penalty of One Thousand Dollars ($1,000) for each day that Respondent fails to conduct the source test past the above deadline.

    11.     If the source test does not demonstrate PM10 emissions less than 2.00 pounds per hour, Respondent shall pay a stipulated penalty of Twenty-Five Thousand Dollars ($25,000). In addition, Respondent shall submit to IDEM a work plan detailing steps such as work practices or further control to be taken by Respondent to ensure PM10 emissions less than 2.00 pounds per hour. The work plan shall be due to IDEM within thirty (30) days of Respondent's receipt of the results. Within sixty (60) days of IDEM's written approval of the work plan, Respondent shall implement the work plan and conduct a second source test for particulate matter emissions on the new emissions control device.
                            


    12.    In the event the terms and conditions of paragraphs two (2), three (3), or four (4) are violated, the Complainant may assess and the Respondent shall pay a stipulated penalty of One Thousand Dollars per day ($1,000/Day), per violation.
        
    13.     Stipulated penalties shall be due and payable with thirty (30) days after Respondent receives written notice that the Commissioner has determined a stipulated penalty is due. Assessment and payment of a stipulated penalty shall preclude the Complainant from seeking any additional monetary relief against the Respondent for that violation of the Agreed Order which gave rise to the stipulated penalty. In lieu of assessment of any of the stipulated penalties above, the Complainant may seek any other remedies or sanctions available by virtue of Respondent's violation of this Agreed Order, including, but not limited to: civil penalties pursuant to IC 13-30-4, and permit revocation pursuant to IC 13-15-7 and 326 IAC 2. Assessment and payment of stipulated penalties shall not preclude the Complainant from seeking or obtaining any injunctive relief against Respondent for violation of this Agreed Order.

    14.    Civil and stipulated 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

    15.    In the event that the civil penalty required by paragraph eight (8) is not paid by the payment plan, 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.

    16.      "Force Majeure", for purposes of this Agreed Order, is defined as any event arising from causes beyond the control of the Respondent that delays or prevents the performance of any obligation under this Agreed Order despite Respondent's best efforts to fulfill the obligation. The requirement that the Respondent exercise "best efforts to fulfill the obligation" includes using the best efforts to anticipate any potential force majeure and best efforts to address the effects of any potential force majeure event (1) as it is occurring and (2) following the potential force majeure event, such that the delay is minimized to the greatest extent possible. "Force Majeure" does not include financial inability to complete the work

required by this Agreed Order or increases in cost to perform the work.

        The Respondent shall notify IDEM by calling within three (3) calendar days and by writing no later than seven (7) calendar days after any event which Respondent contends is a force majeure. Such notification shall describe the anticipated length of the delay, the cause or causes of the delay, the measures taken or to be taken by the Respondent to minimize the delay, and the timetable by which these measures will be implemented. The Respondent shall include with any notice all available documentation supporting their claim that the delay was attributable to a force majeure. Failure to comply with the above requirements shall preclude Respondent from asserting any claim of force majeure for that event. The Respondent shall have the burden of demonstrating that the event is a force majeure. The decision of whether an event is a force majeure shall be made by IDEM. Said decision shall be communicated to the Respondent.
        
        If a delay is attributable to a force majeure, IDEM shall extend, in writing, the time period for performance under this Agreed Order, by the amount of time that is attributable to the event constituting the force majeure or may, if the obligation has been prevented, excuse the performance of the obligation.

    17.    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.

    18.    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.

    19.    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.

    20.    This Agreed Order shall remain in effect until all terms and conditions of paragraphs two (2), three (3), four (4), five (5), six (6), seven (7), eight (8), nine (9), ten (10), eleven (11), and fourteen (14) are met and satisfied.        
                                

                    

TECHNICAL RECOMMENDATION:        Decatur Casting Division of
Department of Environmental Management        Hamilton Foundry & Machine Company

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 in March 2000
                            ___________________________
                            Felicia A. Robinson
                            Assistant Commissioner of Enforcement

Converted by Andrew Scriven