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. )
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.
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