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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.     A-4092
                            )            A-4133
HARTSON-KENNEDY CABINET TOP        )            A-4493
COMPANY, 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. Pursuant to IC 13-30-3, entry into this Agreed Order does not constitute an admission of any violation contained herein.

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 Hartson-Kennedy Cabinet Top Company, Inc. (hereinafter referred to as "Respondent"), which owns and operates counter top manufacturing plants located in Marion and Elkhart, Indiana.

    3.    The Indiana Department of Environmental Management ("IDEM") has jurisdiction over the parties and subject matter of this action.
    
          Pursuant to 326 IAC 2-6-3, the owner or operator of any facility with the potential to emit carbon monoxide (CO), volatile organic compounds (VOCs), oxides of nitrogen (NOx), particulate matter (PM10), or sulfur dioxide (SO2) into the ambient air at levels equal to or greater than one hundred (100) tons per year to annually submit an emission statement to the Commissioner by July 1 of the following

year. Respondent failed to submit the emission statement for 1996 by July 1, 1997 for the Marion plant, a violation of 326 IAC 2-6-3.
    
    5.     Pursuant to 326 IAC 2-7-3, no Part 70 source may operate after the time that it is required to submit a timely and complete application. Respondent's Elkhart and Marion plants continued to operate following the December 13, 1996 Part 70 permit submission deadline and prior to applying for and receiving Part 70 permits, violations of 326 IAC 2-7-3.

    6.    Pursuant to 326 IAC 2-7-4, the owner of each Part 70 source to submit a timely and complete permit application. Respondent's Part 70 permit applications were      received after the December 13, 1996 submission deadline, violations of 326 IAC 2-7-4.
                            
    7.    Rule 8-2-12 requires applicable furniture and cabinet manufacturers to utilize         airless or electrostatic coating application technologies by July 1, 1991.              Respondent did not incorporate at the Elkhart plant these technologies at the time          of the rule applicability thereby violating 326 IAC 8-2-12.

    8.    On May 22, 1997, IDEM's Office of Air Management sent Respondent a written request for a Part 70 Permit application for their Marion plant.

    9.    On August 25, 1997, IDEM mailed a second request to Respondent for a Part 70 Permit application for the Marion plant.

    10.    Pursuant to IC 13-30-3-3, IDEM issued a Notice of Violation dated February 5, 1998 via Certified Mail to:

            Glenn Devitt, Corporate Engineer    William M. Kennedy
            Hartson-Kennedy Cabinet Co.    Registered Agent for
            522 West 22nd Street        Hartson-Kennedy Cabinet Co.
            Marion, IN 46953            522 West 22nd Street
                                Marion, IN 46952

    11.    On February 19, 1998, Respondent submitted to IDEM's Office of Air Management a Part 70 Permit application for the Marion plant.

    12.    On July 28, 1998, Respondent submitted to IDEM's Office of Air Management a         Part 70 Permit application for the Elkhart plant.        

    13.    On December 17, 1998, Respondent complied with the requirements of 326 IAC 8-2-12 by utilizing high volume low pressure coating application technology at their Elkhart, Indiana plant.


    14.    This Agreed Order resolves the violations listed in this Order, listed in the Notice of Violation dated February 5, 1998, and under cause numbers A-4092, A-4133, and A-4493.
        
    15.    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.    All submittals required by this Agreed Order, unless notified otherwise in writing, shall be sent to:

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

    3.    Respondent is assessed a civil penalty of Sixty-One Thousand and Six Hundred Dollars ($61,600). Said penalty amount shall be due and payable to the Environmental Management Special Fund according to the following payment schedule:
                i)     $15,400 by July 15, 2000
                ii)     $15,400 by October 15, 2000
                iii)    $15,400 by January 15, 2001
                iv)    $15,400 by April 15, 2001.    

    4.    The civil penalty payments are payable by checks 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

    5.    In the event that the civil penalty required by paragraph three (3) is not paid within the payment scheduled, 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.

    6.    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.        

    7.    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.

    8.    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.

    9.    This Agreed Order shall remain in effect until Respondent has complied with the terms and conditions of paragraphs three (3) and four (4) of this Agreed Order.
                                

TECHNICAL RECOMMENDATION:        Hartson-Kennedy Cabinet Top Company,
Department of Environmental Management        Inc.

By:     _________________________        By: _________________________
    David P. McIver
    Air Section Chief            
    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 July 26, 2000
                            ___________________________
                            Felicia A. Robinson
                            Assistant Commissioner
                            Office of Enforcement

Converted by Andrew Scriven