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. 8407-H or H-13778
                            )
HAYNES INTERNATIONAL, INC.        )
                            )
        Respondent.                )

    2.    Respondent is Haynes International, Inc. (hereinafter referred to as "Respondent"), a company doing business at 1020 West Park Avenue, Kokomo, 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:

            Francis J. Petro, President        CT Corporation, Registered Agent
            Haynes International, Inc.        for Haynes International, Inc.
            1020 W. Park Avenue            One North Capitol Avenue
            Kokomo, IN 46904-9013        Indianapolis, IN 46204

    5.    Respondent produces specialized bar and sheet nickel and cobalt-based metal alloys. Hazardous waste is generated from the pickling process (spent pickle liquor), process labs and mercury switches, which are sent off-site for mercury reclamation. Respondent notified as a Large Quantity Generator (LQG) on November 17, 1980, and operates with the U.S. EPA identification number IND 984 867 481.

    6.    Based upon an investigation of the facility on March 26, 1999, by the Office of Solid and Hazardous Waste Management (hereinafter referred to as "OSHWM") of IDEM, IDEM contends that the following violations were in existence or observed at the time of the inspection:

        a)    Pursuant to 329 IAC 3.1-7-11, generators of hazardous waste must enter the three (3) digit handling codes in box K of the Indiana Hazardous Waste Manifest Form that most closely represent the method used at the designated facility to treat, store, dispose, or recover each hazardous waste identified on the manifest. Based upon information gathered by IDEM, Respondent failed to use the correct handling code in box K of the Indiana Hazardous Waste Manifest Form. Respondent used handling code D85 instead of T21, the correct handling code.

             On November 15, 1999, Respondent submitted to IDEM manifest forms with the correct handling code.

        b)    Pursuant to 40 CFR 262.34(a)(3), a generator may accumulate hazardous waste on-site for 90 days or less, provided that while being accumulated on-site, each container and tank is labeled or marked clearly with the words "Hazardous Waste." Based upon information gathered by IDEM, Respondent failed to label or mark clearly two (2) tanks, located near the wastewater treatment area and used to store waste acid (D002), with the words "Hazardous Waste."

             On November 19, 1999, Respondent notified IDEM that this violation has been corrected.

        d)    Pursuant to 40 CFR 262.34(a)(1)(ii) referencing 40 CFR 265.192(a), owners or operators of new tank systems must obtain a written assessment reviewed and certified by an independent, qualified, registered professional engineer attesting that the system has sufficient structural integrity and is acceptable for the storing and treating of hazardous waste. Based upon information gathered by IDEM, Respondent was unable to provide IDEM with written tank integrity assessments for the two (2) tanks used to store waste acid (D002) and located near the wastewater treatment area.

             On November 19, 1999, Respondent submitted to IDEM, for review, an engineering report for the above-referenced tanks.

        e)    Pursuant to 40 CFR 262.34(a)(1)(ii) referencing 40 CFR 265.193, owners or operators of tank systems must provide secondary containment for those tanks that meet the requirements of 40 CFR 265.193. Based upon information gathered by IDEM, Respondent failed to provide the required secondary containment for two (2) tanks used to store waste acid (D002). The tanks are located in an enclosed area, and the floor is lined with gravel. More specifically, Respondent was unable to demonstrate that the secondary containment included the following:

            1)    adequate space to contain 100% of the largest tank within its boundary;

            2)    prevention of run-on;

            3)    a proper leak detection system;

            4)    an impermeable coating or lining;
    
            5)    chemically resistant water-stops;

            6)    protection against formation and ignition of vapors;

            7)    exterior moisture vapor; and

            8)    ancillary equipment with full secondary containment which meets the requirements of 40 CFR 265.193(i)(1-3).

             On November 19, 1999, Respondent submitted to IDEM, for review, an engineering report for the above-referenced tanks.

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

    8.    Pursuant to IC 13-30-3-3, entry into the terms of this Agreed Order does not constitute an admission of any violation contained herein.

    2.    In the future Respondent shall ensure that the correct handling code is used in Box K, pursuant to 329 IAC 3.1-7-11.

    3.    Upon the effective date of this Order, Respondent shall label two (2) tanks located near the wastewater treatment area and used to store waste acid (D002) with the words "Hazardous Waste," pursuant to 40 CFR 262.34(a)(3). Respondent shall submit documentation of compliance to IDEM.

    4.    In the future, Respondent shall ensure that all containers used to store used oil are labeled with the words "Used Oil," pursuant to 329 IAC 13-4-3(d).

    5.    In the future, Respondent shall ensure that the waste acid tanks are managed in accordance with 40 CFR 265, Subpart J.
    

        Ms. Dianna Schlicher
        Office of Enforcement
        Hazardous Waste Section
        Indiana Department of Environmental Management
        100 N. Senate Avenue
        P. O. Box 6015
        Indianapolis, IN 46206-6015

    7.    All submittals required by this Agreed Order shall contain the following certification:

        "I certify under penalty of law that this document and all attachments were prepared under my direction or supervision in accordance with a system designed to assure that qualified personnel properly gather and evaluate the information submitted. Based on my inquiry of the person or persons who manage the system, or those persons directly responsible for gathering the information, the information submitted is, to the best of my knowledge and belief, true, accurate, and complete. I am aware that there are significant penalties for submitting false information, including the possibility of fine and imprisonment for knowing violations."

    8.    Respondent is assessed a civil penalty of Twenty Thousand Dollars ($20,000). Said penalty amount shall be due and payable to the Environmental Management Special Fund within thirty (30) days of the Effective Date of this Agreed Order.

    9.    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

    10.    In the event that the civil penalty required by paragraph 8 is not paid within specified time frames 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.

    11.    This Agreed Order shall apply to and be binding upon the Respondent, its officers, directors, principals, agents, successors, subsidiaries, and assigns. The 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.

    12.    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.

    13.    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, by contract, require that all contractors, firms and other persons acting for it comply with the terms of this Agreed Order.

    14.    This Agreed Order shall remain in effect until IDEM issues a Resolution of Cause letter to Respondent.

TECHNICAL RECOMMENDATION:        RESPONDENT:
Department of Environmental Management

By: _________________________            By: _________________________
Nancy L. Johnston, Section Chief
Hazardous Waste Section                Printed: ______________________
Office of Enforcement
                            Title: ________________________

Date: ________________________            Date: ________________________

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

By: _________________________            By: ________________________
Office of Legal Counsel

Date: _______________________            Date: ______________________

APPROVED AND ADOPTED BY THE INDIANA DEPARTMENT OF ENVIRONMENTAL MANAGEMENT THIS 12 DAY OF February, 2000.

                            For the Commissioner:

                            signed 2/12/00
                            Felicia A. Robinson
                            Assistant Commissioner
                            Office of Enforcement