Enforcement Action Summary FY 2004- A to D

Name (A to D)

A & R Katz Management, Inc.
Abbyland Foods, Inc. and Schoep’s Ice Cream Company, Inc.
Ace Ethanol Company
AEP Industries Inc.
Aexcel Corporation
Alpha Systems, Inc.
Amber Oil
Arrow Chemical Products, Inc.
Ashland, Inc.
Associated Milk Producers, Inc.
Atlantic Richfield Company, et al.
Barcelona Apartments L.P.
Big Three Auto Manufacturers, et al.
BP Chemicals Inc.
Brenntag Great Lakes
Brook Enterprises, Inc. et al.
Bruner, Rod and Century 21 Country North
Buckeye Egg Farm, L.P.
Buscher, Theresa A. and John J., et al.
Central Bi-Products
Champion Packaging & Distribution Inc.
Chevron Environmental Management Company
C.H.I. Overhead Doors, Inc.
Clay Logan Products Company
Clymer, Barbara
CMS Generation
CNW Inc. and CNW Acquisitions
Continental Engineering
CoOperative Plating Company
Courneyor, Paul d/b/a Courneyor Septic Services
Credido, John D.
Crown EG Inc. (03/01/04)
Crown EG Inc. (06/29/04)
Curry, Cecil
Dominick's Finer Foods, LLC
Ducu, Valentin D. (07/08/04)
Ducu, Valentin D. (08/12/04)
Dyckerhoff, Inc.

Region 5 Issues Complaint and CAFO to A & R Katz Management, Inc., Northbrook, Illinois, For Failure to Provide to Lessees Information Required Under the Residential Lead-Based Paint Hazard Reduction Act. On February 13, 2004, a delegated complainant of the Administrator filed an Administrative Complaint against Respondent A & R Katz Management Inc., (Katz), of Northbrook, Illinois, and, at the same time, filed a Consent Agreement and Final Order (CAFO) resolving the action against Katz. Between November 2001 and May 2002, Katz leased several residential apartments in a complex collectively known as the Shagbark Apartments, located in the 3900 to 4100 blocks of Washington Road, in Kenosha, Wisconsin, to various parties, without providing to the lessees the Lead Warning Statement; a statement disclosing it knowledge of whether lead was present in the apartment being leased; available records regarding any lead in the apartment being leased, or a statement that it had no such records; a statement of lessee acknowledging receipt of lead related information; and a certification of the accuracy of any statement made by Katz. The Complaint proposed that the Administrator assess a penalty in the amount of $31,460 for the violations.

The Administrator’s delegated complainant has agreed to accept a penalty of $2,200 in consideration of Katz’ cooperation in addressing its obligations under the Lead-Based Paint Hazard Reduction Act; its agreement to resolve this matter prior to the completion of the pre-hearing exchange; and, in October 2003, its having undertaken and completed, under the requirements of the 1997 Revision of the U.S. Department of Housing and Urban Development’s Guidelines for the Evaluation and Control of Lead-Based Paint Hazards in Housing, a lead-based paint inspection conducted by Assurance Inspection Services, LLC, a company certified by the Wisconsin Department of Health and Family Services, that found the residential units in the Shagbark Apartments to be lead-based paint free.

Contact: Richard R. Wagner 312-886-7947

The United States lodges Consent Decree with Ace Ethanol, LLC resolving violations of the Clean Air Act. On February 6, 2004, the United States and the State of Wisconsin lodged a Consent Decree and simultaneously filed a Complaint in the Western District of Wisconsin against Ace Ethanol, L.L.C. (Ace) in Stanley, Wisconsin. The Complaint alleges that Ace failed to obtain the proper permits and install Best Available Control Technology prior to beginning operation of its ethanol facility. The Consent Decrees addresses emission limits and control technology requirements, as well as permitting and record-keeping requirements. Ace will pay a civil penalty to the State of Wisconsin in the amount of $337,609.

Contact: Cynthia King, 312-886-6831

Region 5 files Consent Agreement and Final Order with Arrow Chemical Products, Inc. On May 27, 2003, Region 5 filed a Complaint against Arrow Chemical Products, Inc. (“Arrow”), Detroit, Michigan, alleging that, in violation of Section 12(a)(1)(A) of FIFRA, Arrow distributed or sold on four occasions a pesticide product without the existence of a supplemental distribution agreement required for the product, and therefore distributed or sold an unregistered pesticide. The Complaint sought a penalty of $4,400 for each of four counts, amounting to a total penalty of $17,600. After settlement discussions, including the parties’ participation in the Alternative Dispute Resolution (“ADR”) process offered by the Office of Administrative Law Judges, Region 5 agreed to settle this matter for $8,800, based upon evidentiary issues raised during ADR. The fully executed Consent Agreement and Final Order was filed by Region 5 on December 5, 2003. The penalty represents a substantial sanction against Arrow for distributing a pesticide that lacked a supplemental distribution agreement, and will deter future violations.
Primary Contact: Kevin Chow, (312) 353-6181; Additional Contact: Joe Lukascyk, (312) 886-6233.

Eighth Circuit Reverses Trial Judge’s Condition of Probation at Facility No Longer Owned by Defendant (U.S. v. Ashland, Inc., D. MN). The Eighth Circuit Court of Appeals held January 27, 2004 that a trial judge abused his discretion in ordering Ashland, Inc. to be responsible for environmental compliance at a facility which they no longer owned. Ashland pleaded guilty and was fined in 2003 arising from a series of explosions and fires at its St. Paul Park, MN refinery. The explosions, and resulting injuries, were attributed to a failure to seal a manhole as required by Clean Air Act regulations applicable to refinery sewer systems. After the explosions, Ashland, Inc. sold the refinery to a new company jointly-owned by itself and Marathon. At sentencing, the Chief Judge of the District ordered Ashland to hire a consultant to assess environmental compliance at the Minnesota refinery, despite the fact that Ashland no longer owned it. This appeal resulted. The Eighth Circuit ruled that due process prohibits making Ashland responsible for activities at a facility which they do not control, and struck that portion of the sentencing order. The decision, however, leaves intact other sentencing requirements, such as requiring Ashland to pay to upgrade the St. Paul Park sewer system to ensure that the explosions do not re-occur.
Primary contact: David M. Taliaferro (312) 886-0815

Clean Air Act Case Against Associated Milk Producers, Inc. Settled with CAFO.
On December 2, 2003, Region 5 filed a Consent Agreement and Final Order resolving an administrative action against Associated Milk Producers, Inc., related to violations of Section 112(r) of the Clean Air Act at the company’s Rochester, Minnesota facility. More specifically, the Region alleged in its Complaint that Associated Milk had failed to timely submit to EPA a Risk Management Plan, as required by the regulations at 40 C.F.R. Part 68. Using EPA’s Combined Enforcement Policy for Section 112(r), the Complaint proposed a penalty of $69,002. In consideration of the company’s cooperation during the pre-filing investigation and other equitable factors, Region 5 agreed to settle the case for $35,000.
Primary contact: Louise Gross, (312) 886-6844

Region 5 files Consent Agreement and Final Order with Rod Bruner and Century 21 Country North. On January 28, 2003, Region 5 issued a civil administrative complaint against Rod Bruner and Century 21 Country North alleging that Bruner and Century 21 violated the Residential Lead-Based Paint Hazard Reduction Act of 1992 (the “Lead-Based Paint Hazard Reduction Act”), 42 U.S.C. § 4852d et seq., and Section 16 of TSCA, 15 U.S.C. § 2615, and 40 C.F.R. § 745.113(b)(1), (b)(2), (b)(3), (b)(4), and (b)(6) in the sale of a residential property. The complaint sought a penalty of $34,100. Respondents filed an Answer to U.S. EPA’s Complaint. On January 20, 2004, Region 5 and the Respondents entered into a Consent Agreement and Final Order (CAFO) settling U.S. EPA’s claims. In the CAFO, the Respondents agree to pay a civil penalty of $8,525.
Primary contact: Jeffrey A. Cahn (312) 886-6670;
Additional contact: Scott Cooper (312) 866-1332.

Region 5 issues Notice of Default and Request for Stipulated Penalties for failure of Central Bi-Products to comply with Consent Agreement and Final Order resolving self-disclosed violations of Section 313 of EPCRA. On September 23, 2003, Region 5 filed a Consent Agreement and Final Order simultaneously commencing and concluding an action prior to the issuance of a complaint as allowed by 40 C.F.R. § 22.13, relating to violations that were voluntarily self-disclosed by Central Bi-Products, a division of Farmers Union Marketing & Processing Association, Redwood Falls, Minnesota, under U.S. EPA’s “Policy on Incentives for Self-Policing: Discovery, Disclosure, Correction and Prevention of Violations” (Audit Policy). Central Bi-Products operates two meat rendering facilities in Redwood Falls and Long Prairie, Minnesota. Region 5 determined that while Central Bi-Products was potentially liable for $192,950 in civil penalties, the company met all of the criteria under the Audit Policy except for Condition 1; namely, that the internal audit by Central Bi-Products did not fully meet the policy’s definitions of “environmental audit” or “compliance management system.” The parties agreed to resolve the violations through the company’s commitment to develop and implement a compliance management system consistent with the definition in the Audit Policy, and to conduct a comprehensive Emergency Planning Community Right-to-Know Act (EPCRA) Section 313 audit within two years after the CAFO, in return for 100% mitigation of the penalty. The CAFO provided for $48,000 in stipulated penalties, approximately 25 % of the original penalty, if Central Bi-Products submitted a second deficient draft Self Policing Plan after receiving EPA Region 5's written disapproval of the first draft. Region 5 disapproved the Respondent’s first formal draft and reviewed a subsequent informal draft. In spite of Region 5's discussions with Central Bi-Products regarding problems in each draft, Central Bi-Products’ final submission still contained numerous deficiencies. Therefore, on February 13, 2004, Region 5 issued a disapproval of the second draft Self Policing Plan, a notice of default, and a request for stipulated penalties.

Primary Contact: Kevin Chow, (312) 353-6181;
additional contact: Bob Allen, (312) 353-5871.

Minnesota automotive parts manufacturer sentenced for dumping chemicals into a storm drain in fishkill case (U.S. v. Continental Engineering, D. MN). On October 30, 2003, a Minnesota manufacturing firm admitted illegally dumping waste machining coolant and tramp oil down a storm drain, resulting in a fish kill in a nearby creek, and was sentenced to pay out over $55,000 in fines and restitution and serve a two-year period on probation. Continental was sentenced to pay a criminal fine of $10,000, pay $5,000 to a Minnesota Department of Natural Resources fish hatchery, $10,000 to a Children’s Water Festival and expend $30,000 on future projects. The case arose in 2001 when environmental regulators discovered a fishkill had occurred in Chaska Creek. On several occasions prior to the fishkill, the Carver County Environmental Services Department had instructed the firm’s CEO (since deceased) to properly characterize and properly dispose of the liquid wastes that had accumulated in the drums. The company admitted that the former CEO of the family-run business directed two employees to come in on a weekend to dump some 30 partially-filled 55-gallon drums down a storm sewer in the business’ parking lot. The drums contained various chemicals wastes that had accumulated from the company’s industrial operations. Continental Engineering manufactures drivelines for heavy-duty vehicles.

Contact: David M. Taliaferro (312) 886-0815.

Region 5 Issues a CERCLA Unilateral Administrative Order to Brook Enterprises, Inc. and Monroe Four Co-Partnership. In January 2003, Region 5 inspected an abandoned paint stripping facility in Taylor, Michigan, known as the Monroe Street Site. The Agency’s inspection revealed approximately 200 abandoned drums and 10,000 gallons of containerized hazardous liquids and sludges. Accordingly, on July 1, 2003, an action memorandum was issued setting forth a plan to cleanup the facility. After issuing information requests and general notice of liability letters to the former operator, Brook Enterprises, and the former owner, Monroe Four Co-Partnership, the Agency issued a unilateral administrative order (UAO) to these parties. The UAO directed the parties to cleanup the facility. As both parties have claimed an inability to fund this cleanup, valued at approximately $150,000, the Region has initiated cleanup activities.

Primary contact: Rich Murawski, 312-886-6721;
Additional contact: Jeff Kimble, 734-692-7688

The United States lodges Consent Decree with Dominick’s Foods, L.L.C. resolving violations of the Clean Air Act. On January 21, 2004, the United States lodged a Consent Decree and simultaneously filed a Complaint against Dominick's Finer Foods, L.L.C. (Dominick's) for violations of the stratospheric ozone requirements of the Clean Air Act at 29 stores in the Chicagoland area. Under the Consent Decree, Dominick's has agreed to: retrofit any refrigerant appliance that use ozone-depleting substances; build new stores that only use non-ozone-depleting substances; evaluate the performance of the 29 stores in the EPA Energy star program and will pay a civil penalty of $85,000.

Contact: Cynthia King, 312-886-6831.

U.S. EPA finalizes voluntary Performance Agreement with Chevron Environmental Management Company. On March 4, 2004, U.S. EPA finalized a voluntary performance agreement with Chevron Environmental Management Company for clean-up of contaminated soils and sludges at Chevron’s, previously Gulf Western’s, refinery. The clean-up agreement embodies Chevron’s commitment to remove and dispose the refinery’s remaining contaminated soils and sludges at a permitted hazardous waste disposal facility in Roachdale, Indiana. Under the voluntary performance agreement, Chevron will complete the clean-up of contaminated soils and sludges at the facility. The five pipelines that conveyed Chevron’s fuel products to its dock on the Ohio River, two islands owned by Chevron in the Great Miami River through which these pipelines ran, and its former dock on the Ohio River are not addressed by this Performance Agreement. Ultimately, Chevron plans to transform the former refinery into a mixed use development consisting of recreational parkland, a nature area, and a commercial/ light industrial zone.

The Chevron refinery covers approximately 250 acres, and is situated in Hooven, Ohio, on the Great Miami River approximately 20 miles west of Cincinnati, and 3 miles north of the Ohio River. The facility operated as a refinery producing various petroleum-based fuels from before WWII until approximately 1987. The facility also includes a 5-acre, former land farm situated on a hill above the Town of Cleves, Ohio to the west of the 250-acre refinery. Pursuant to a May ‘93 U.S. EPA RCRA Section 3008(h) Administrative Order on Consent (AOC), Chevron investigated and has already remediated most of the 44 solid waste management units and areas of concern at the former refinery.

This RCRA facility is noteworthy because U.S. EPA’s May ‘93 RCRA Section 3008(h) corrective action consent order with Chevron was the first AOC in the country to utilize RCRA corrective action authority to treat petroleum hydrocarbons in groundwater. Since 1993, Chevron has been pumping contaminated groundwater and either recovering petroleum hydrocarbons for re-sale as fuel, or treating petroleum hydrocarbon-contaminated groundwater. This aspect of the RCRA 3008(h) interim correction action AOC will continue for the foreseeable future. A final groundwater remedy is planned for later in 2004. The soils and sludges clean-up pursuant to the performance agreement is expected to last 3 to 4 years. Chevron estimates the value of the work to be done cleaning up soils and sludges to be $24 million.

Primary contact: Jerome Kujawa 312-886-6731.

Region 5 enters into a Administrative Order on Consent Agreement with Oil Companies for Oil Release in the Village of Hartford, Illinois. On March 17, 2004, Region 5 entered into an Administrative Order on Consent (“AOC”) with Atlantic Richfield Company, Equilon Enterprises LLC d/b/a Shell Oil Products US, and The PREMCOR Refining Group Inc. (collectively the Hartford Working Group or HWG). The AOC , which was issued pursuant to Section 7003 of the Resource Conservation and Recovery Act (RCRA), as amended, 42 U.S.C. § 6973 and Sections 311(c) and (e), of the Clean Water Act (CWA), 33 U.S.C. § 1321(c) and (e), requires HWG to address a plume of refined oil product under the Village of Hartford, Illinois. The plume, which is the result of numerous releases from pipelines and refineries in the area, threatens discharges to the Mississippi River through operable as well as abandoned sewer systems. In addition, vapors from the plume have migrated into residences in the Village of Hartford resulting in explosions, fires, and evacuations.

The AOC requires HWG to implement interim measures to prevent the migration of vapors into residences and, if necessary, temporarily relocate residents. In addition, HWG will investigate the nature and extent of the plume and design a remedy selected by EPA. The remedy will be implemented under a subsequent Order. There will be a 14 day public comment period.

Primary contact Brian Barwick, 312-886-6620;
Additional contact Steve Faryan/Kevin Turner, On-Scene Coordinators, 312-353-9351/618-997-0115

Region 5 enters a second CERCLA Administrative Order on Consent for PRP-lead removal work to address wastes stored at an abandoned chemical warehouse in Canton, Ohio. Under an AOC issued on March 16, 2004, AEP Industries, Inc., agreed to implement a removal action to address approximately 200 drums of waste material associated with AEP that were stored at the Smith Chemical warehouse in Canton. In February U.S. EPA entered into a similar AOC with Freeman Environmental for drum and hazardous material removal work at the Smith Chemical warehouse. The warehouse is an abandoned four-story building located in a residential area of Canton, that had contained 700 to 800 55-gallon drums of assorted hazardous and flammable wastes, as well as several hundred smaller containers of hazardous and laboratory chemicals. U.S. EPA is continuing with a removal action, lead by Superfund, at the site. U.S. EPA hopes to enter into one more AOC with another PRP for work at the site.

Contact: Reginald Pallesen, 312-886-0555;
additional contact: James Augustyn, 440-250-1742

Acting Regional Administrator expected to sign sixteen Final Orders. The Acting Regional Administrator is expected to sign sixteen Final Orders ratifying the terms of Consent Agreements And Final Orders entered into by the Region. The expedited settlements are part of the National Community Right To Know Late Reporters Initiative. The Final Orders direct the settling parties to pay civil penalties in the amount of Five Thousand ($5,000.00) Dollars, a penalty amount equal to the amount originally demanded by the Region. The Region has entered into settlements with the following companies: Alpha Systems, Inc., Dyckerhoff, Inc., Hoffer’s Coatings, Inc., Illinois Cement Company, Muskegon Castings Corp., LLC, Perma-Fix Environmental Services, Inc., Potlach Corp., Superior Aluminum Alloys, and Voith Paper, Inc., Clay Logan Products Company, CMS Generation Filer City Operating Co., ITT Industries - Bell & Gossett, Schauenburg International, Inc., Leland Engineering, Inc., Raybestos Automotive Components Co., and Valley Cabinet, Inc.

Headquarters has been working with the regions since the Fall of 2003 to develop and implement a national Community Right To Know Enforcement Initiative. The Initiative is intended to signal to the regulated community the importance of on-time reporting of Toxics Release Inventory (TRI) forms through a broad enforcement effort designed to heighten facilities’ awareness of the annual reporting deadline. The reports are required under Section 313 of the Emergency Planning and Community Right To Know Act (EPCRA). The settlements described above are the first regional fruits of the initiative. The Region anticipates entry of approximately eighty such settlements. The Region has executed these settlements in a manner consistent with the terms and policies set forth by the Director of the Toxics & Pesticides Enforcement Division in an April 6, 2004, memorandum directed to Regional TRI Managers and Regional Community Right To Know Enforcement Initiative Coordinators.

Primary contact Steven P. Kaiser, (312) 353-3804.

Region 5 Signs a Consent Agreement and Final Order with BP Chemicals, Inc. On September 29, 2003, Region 5 issued a two-count administrative complaint against BP Chemicals, Inc. (BPC) for violations of the Prevention of Significant Deterioration (PSD) requirements at 40 C.F.R. § 52.21(i) that were incorporated into the Ohio State Implementation Plan and the New Source Performance Standards at 40 C.F.R. § 60.44e(b) at its chemical manufacturing plant in Lima, Ohio. More specifically, the Region alleged that BPC began construction of its butanediol manufacturing plant 15 days prior to the effective date of the final PSD permit in Count I and discharged gases from its absorber off-gas incinerator that contained nitrogen oxides (NOx) in excess of the emission limit prescribed by 40 C.F.R. § 60.44e(b) from March 19, 1999 through November 24, 2001(101 days) in Count II. The complaint includes a proposed penalty of $156,200. On December 17, 2003, the State of Ohio (Ohio) and BPC entered into an agreement, known as a consent order, resolving, among other things, violations of NOx emission limits that are substantially the same as the violations alleged in Count II of the Region’s complaint. In consideration of this consent order, the Region has agreed to withdraw Count II of its complaint and to mitigate the proposed penalty from $156,200 to $48,400. In consideration of BPC’s cooperation with U.S. EPA and litigation risks, the Region has agreed to mitigate the penalty of $48,400 to $30,000. The Consent Agreement and Final Order (CAFO) was signed by the Acting Regional Administrator on May 4, 2004.

Contact: Christine Liszewski, primary contact 312-886-4670; Kevin Vuilleumier, additional contact 312-886-6188

Region 5 files Consent Agreement and Final Order with Cinch Connectors, Inc.
On September 30, 2003, Region 5 filed a Complaint against Cinch Connectors, Inc. (“Cinch”), New Hope, Minnesota, alleging that, in violation of various authorized Minnesota rules for hazardous waste, Cinch: 1) failed to make complete hazardous waste determinations for naptha/mineral spirits solvent wastes and spent sand blast media; 2) failed to prepare hazardous waste manifests for off-site shipments of naptha/mineral spirits wastes; 3) failed to keep records of any test results, waste analyses, or other determinations for spent tumbler filters and tetrachloroethylene/trichloroethylene waste; 4) failed to keep copies of signed manifests for tetrachloroethylene/trichloroethylene waste; and, 5) failed to inspect container storage areas on a weekly basis. The facility where these violations occurred was located at 8821 Science Center Drive, New Hope, MN, but was closed by the Cinch prior to U.S. EPA’s Complaint. Pursuant to Section 3008 of the Resource Conservation and Recovery Act of 1976, as amended (“RCRA”), 42 U.S.C. § 6928, Region 5 proposed a civil penalty of $74,250 for the alleged past violations. After settlement discussions, Region 5 agreed to settle this matter for $62,865 prior to the filing of an Answer by Cinch. The fully executed Consent Agreement and Final Order was filed by Region 5 on May 3, 2004. The penalty represents a substantial sanction against Cinch for violating RCRA, and will deter future violations by Cinch at its other facilities.

Primary Contact: Kevin Chow, 312-353-6181; Additional Contact: Graciela Scambiatterra, 312-353-5103.

Ohio Man Sentenced for Illegal Disposal of Hazardous Waste; State of Ohio v. Cecil Curry. On May 7, 2004, Cecil Curry was sentenced for illegal disposal of hazardous waste and criminal endangering related to the abandonment of 25 fifty-five gallon drums by Mr. Curry on a vacant lot in Cincinnati, Ohio. Mr. Curry was sentenced to six month of custody (suspended) to be followed by 12 months of probation. Mr. Curry was ordered to perform 50 hours of community service. Because Mr. Curry is indigent he was not required to pay a fine or restitution.

On April 21, 2004, Mr. Curry was charged and pled guilty to a two-count information related to the illegal disposal of hazardous waste. The information alleged that Mr. Curry was paid $750 to dispose of 25 fifty-five gallon drums. The drums contained toxic and ignitable hazardous wastes. Mr. Curry rolled the drums down an alley and onto a vacant lot. During transportation the drums leaked hazardous waste onto the ground. Mr. Curry knew that the cost to legally dispose of the drums was substantially more than $750 and that the drums needed to be disposed of at a licensed disposal site.

This case was investigated, in a joint investigation, by the Ohio Bureau of Criminal Identification and Investigation, the Ohio Environmental Protection Agency, the Cincinnati Fire Department, Cincinnati Health Department, the Cincinnati Police Department, and U.S. EPA CID, all members of the Cincinnati Environmental Crimes Task Force.

Contact: Brad Beeson 440-250-1761.

Region 5 Signs EPCRA Consent Agreement with CHI Overhead Doors, Inc. On May 14, 2004, Region 5 filed a combination Complaint/Consent Agreement and Final Order (CAFO) simultaneously initiating and resolving CHI Overhead Doors, Inc.’s Section 313 EPCRA violations. Region 5 alleged that CHI Overhead Doors, Inc. (CHI) failed to file a toxic chemical release inventory form (Form R) or a certification statement (Form A) for diisocyanates after it manufactured, processed, or otherwise used diisocyanates at its facility in an amount greater than the threshold amount for the 2000 and 2001 reporting years. Region 5 reduced the original proposed penalty amount of $37,400 after taking into consideration the fact that CHI met all U.S. EPA Self-Disclosure Policy requirements except for the first requirement, discovering the violation through an audit or a compliance management system. Consequently, consistent with the Self-Disclosure Policy, the Region reduced the penalty amount by seventy-five percent. Accordingly, the CAFO requires CHI to pay a penalty of $3,520. For more information on isocyanate, please see http://www.epa.gov/dfe/pubs/auto/profile/

Primary Contacts: Carlos Evans (312) 886-2149 and
Robert Allen (312) 353-5871.

Acting Regional Administrator expected to sign sixteen Final Orders. The Acting Regional Administrator is expected to sign sixteen Final Orders ratifying the terms of Consent Agreements And Final Orders entered into by the Region. The expedited settlements are part of the National Community Right To Know Late Reporters Initiative. The Final Orders direct the settling parties to pay civil penalties in the amount of Five Thousand ($5,000.00) Dollars, a penalty amount equal to the amount originally demanded by the Region. The Region has entered into settlements with the following companies: Alpha Systems, Inc., Dykerhoff, Inc., Hoffer’s Coatings, Inc., Illinois Cement Company, Muskegon Castings Corp., LLC, Perma-Fix Environmental Services, Inc., Potlach Corp., Superior Aluminum Alloys, and Voith Paper, Inc., Clay Logan Products Company, CMS Generation Filer City Operating Co., ITT Industries - Bell & Gossett, Schauenburg International, Inc., Leland Engineering, Inc., Raybestos Automotive Components Co., and Valley Cabinet, Inc.

On December 31, 2001, the Region filed a complaint against Milsolv under Section 3008 of RCRA. The single-count Complaint alleges failure to obtain a hazardous waste facility permit, prior to the storage and treatment of hazardous waste, in violation of Minnesota Regulation 7001.0520, Subp. 1, Item A. Under Minnesota Regulation 7001.0520, Subp. 1, Item A, no person may treat, store, or dispose of hazardous waste without obtaining a hazardous waste facility permit. The Minnesota Rule at issue provides that it is unlawful to store and to treat hazardous waste without a hazardous waste facility permit.

The waste at issue is “spent” isopropanol, which the Region alleged was a hazardous waste due to its ignitability characteristic. The Complaint at Law alleged that the isopropanol was not a by-product, but a spent material. Minnesota defines the term “spent material” as “a material that has been used and as a result of contamination can no longer serve the purpose for which it was produced without processing.” Minn. Rule 7045.0020, subp. 84b (2002). The federal RCRA regulations similarly define the term “spent material.”

The 3M Company used anhydrous IPA to de-water glass fibers in a manufacturing process at an Illinois facility. In the de-watering process the IPA picked up water, becoming aqueous IPA, and was removed from the process by 3M when it was no longer effective for de-watering. 3M sold the aqueous IPA to a chemical broker, who in turn sold it to Milsolv, a chemical distributor. Milsolv removed the water from this aqueous IPA, thereby rendering back to anhydrous IPA. The Region alleged that the aqueous IPA that was stored and treated by Milsolv was a “spent material” and thereby a “hazardous waste.” It was undisputed that Respondent did not have a hazardous waste facility permit when it stored and treated the aqueous IPA.

Milsolv argued that the material at issue was a product or at least a “co-product” generated by the 3M Company, and that even if the material was hazardous waste, there was no violation because it fell under the Minnesota regulations’ exclusion for by-products of hazardous waste. However, the ALJ was persuaded by the Region’s position that co-products are generally generated from the constituents in the materials being processed, and found that “the anhydrous IPA was not a constituent of the material being processed; it was added to the glass fibers being processed for use in the process, and was subsequently removed when it was no longer effective.”

The Region proposed a civil penalty in the amount of $358,678, calculated under the RCRA penalty policy with no adjustments. The hearing in the case was held in Chicago in January 2003, and in Cincinnati in February 2003.

Contacts: Andre Daugavietis 312-886-6663;
Joseph Williams 312-886-6631.

Region 5 issues Administrative Complaints to Abbyland Foods, Inc., and Schoep’s Ice Cream Company, Inc., for Violation of Clean Air Act Section 112(r). Region 5 initiated these enforcement actions on June 18, 2004. The Complaints allege that Abbyland Foods, Inc. of Abbotsford, Wisconsin and Schoep’s Ice Cream Company, Inc. of Madison, Wisconsin violated Section 112(r) of the Clean Air Act by failing to submit Response Management Plans (RMPs). In accordance with Section 112(r) of the Clean Air Act, EPA promulgated regulations at 40 CFR Part 68 to prevent accidental releases of regulated substances and minimize the consequences of those releases that do occur. The RMP regulations apply to all stationary sources that contain more than a threshold quantity of a regulated substance, and require the owner or operator of a regulated facility to develop and implement an RMP. Anhydrous ammonia is a “regulated substance.” An RMP should have been submitted by Abbyland since the facility was first over the threshold quantity for anhydrous ammonia in Spring 2001. An RMP should have been submitted by Schoep’s on the initial reporting date of June 21, 1999 since the facility was first over the threshold quantity for anhydrous ammonia in February 1993. Each Complaint seeks a penalty of $30,000.

Contact: Catherine Garypie, Associate Regional Counsel 312-886-5825;
Bob Mayhugh, Compliance Officer, 312-886-5929

Crown EG, Inc., Charged With Seven CWA Violations in White River Fish Kill Case.
Crown EG, Inc., (Crown) an environmental consulting firm, was charged March 1, 2004, with seven misdemeanor violations of the Clean Water Act involving allegedly negligent discharges of pollutant-laden wastewater which preceded an extensive fishkill affecting over forty miles of the White River in Indiana in December, 1999. Crown supervised the industrial wastewater treatment facility at Guide Corporation’s (Guide) automotive signal lighting manufacturing facility in Anderson, IN. In September, 1999, Guide shut down an electroplating operation at the facility, and thereafter sent waste electroplating chemicals and clean-up waste to its on-site treatment facility. When this process failed to reduce the pollutant concentrations to limits required before discharge, massive quantities of treatment chemicals were added to the wastewater. Approximately 1,610,000 gallons of water contaminated with the byproducts of the treatment chemicals was bypassed around treatment equipment and discharged to the Anderson sewer system, which ultimately discharges to the White River. According to the filed charges, the wastewater contained pollutant concentrations sufficient to cause interference with the City of Anderson’s sewage treatment processes and to constitute a hazard to animals. In June, 2001, Guide pleaded guilty to criminal misdemeanor charges arising from the same events. Crown employees were at Guide throughout the period and significantly participated in the events that resulted in the pollutant-laden discharges.

Under the terms of a plea agreement filed in court the same day, Crown agreed to plead guilty to the charges, to pay a $100,000 fine, and to serve five years on probation, during which it would be required to comply with all environmental laws. Crown would also be required to develop a comprehensive environmental compliance training and education program. Under a separate civil agreement with the U.S. and the State of Indiana, Crown agreed to pay a civil fine of $250,000 for events leading up to the illegal discharges.

Contact: David M. Taliaferro, 312-886-0815.

Crown EG, INC. Sentenced in White River Fish Kill Case. Crown EG, Inc., (Crown) an environmental consulting firm, was sentenced June 29, 2004 in a case in which it had been charged with seven misdemeanor violations of the Clean Water Act (CAA) involving allegedly negligent discharges of pollutant-laden wastewater which preceded an extensive fish kill affecting over forty miles of the White River in Indiana in December, 1999. Crown supervised the industrial wastewater treatment facility at Guide Corporation’s (Guide) automotive signal lighting manufacturing facility in Anderson, IN. In September, 1999, Guide shut down an electroplating operation at the facility, and thereafter sent waste electroplating chemicals and clean-up waste to its on-site treatment facility. When the on-site treatment failed to reduce the pollutant concentrations to limits required before discharge, massive quantities of treatment chemicals were added to the wastewater. Despite receiving information earlier about the dangers to waterways of treatment chemical residues, neither Guide nor Crown personnel tested for residues. Approximately 1,610,000 gallons of water contaminated with the byproducts of the treatment chemicals was discharged to the Anderson sewer system, which ultimately discharges to the White River. According to the charges filed, the wastewater contained pollutant concentrations sufficient to cause interference with the City of Anderson’s sewage treatment processes and to constitute a hazard to animals. In June, 2001, Guide pleaded guilty to criminal misdemeanor charges arising from the same events. Crown employees were at Guide throughout the period and significantly participated in the events that resulted in the pollutant-laden discharges.

In accordance with a plea agreement, Crown was fined $100,000 and placed on five years of probation, during which it would be required to comply with all environmental laws. Crown was also ordered to develop a comprehensive environmental compliance training and education program. Under a separate civil agreement with the U.S. and the State of Indiana, Crown earlier agreed to pay a civil fine of $250,000 for events leading up to the illegal discharges.

Contact: David M. Taliaferro at (312) 886-0815.

Region signs CAFO settling Clean Water Act case. On June 16, the Acting Regional Administrator signed a Consent Agreement and Final Order, settling In the Matter of Paul Cournoyer, d/b/a Cournoyer Septic Services, Docket No. CWA-05-2003-0011. The CAFO requires Mr. Cournoyer to certify that he is in compliance with federal regulations concerning land disposal of domestic septage and to pay a $250 fine. On April 15, 2003, EPA filed an administrative complaint against Mr. Cournoyer, who was doing business as Cournoyer Septic Services in Pittsville, Wisconsin. The complaint alleged that Mr. Cournoyer violated the Clean Water Act by failing to comply with federal regulations concerning land disposal of domestic septage. Mr. Cournoyer was subsequently discharged in bankruptcy under Chapter 7. The penalty amount in the CAFO reflects Mr. Cournoyer’s limited ability to pay a penalty.

Primary contact - Timothy Thurlow, Associate Regional Counsel, 312-886-6623.

Ohio man charged with making false statements to the Ohio Environmental Protection Agency, United States v. Valentin D. Ducu. On July 8, 2004, Valentin D. Ducu was charged in a one-count indictment for making materially false statements in violation of 18 U.S.C. § 1001. According to the indictment, Ducu provided false information to the Ohio Environmental Protection Agency when he applied to take the state’s examination for certification to operate one of the state’s drinking water plant facilities. The indictment charges that Ducu falsely represented in his application that he held a Bachelor of Science degree and was currently working as a level II water plant operator at another drinking water plant facility. According to the indictment, Ducu does not hold a Bachelor of Science degree and was never employed by the drinking water plant facility for which he claimed to work.

The actual sentence in this case, upon conviction, will be determined by the Court under the mandatory Federal Sentencing Guidelines which depend upon a number of factors unique to each case, including the defendants’ prior criminal record, if any, the defendants’ role in the offense, and the unique characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.

This case was investigated, in a joint investigation, by the Ohio Bureau of Criminal Identification and Investigation, the Ohio Environmental Protection Agency, and U.S. EPA CID, all members of the Northeast Ohio Environmental Crimes Task Force.

An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.

Primary contact: Brad Beeson (440) 250-1761.

Region 5 issues CWA 309(a) Administrative Compliance Order to Chaffee Excavating, Vanderbilt, MI On August 20, 2004, Region 5 issued an administrative Findings of Violation and Order for Compliance (“Compliance Order”) under Section 309(a) of the Clean Water Act (“CWA”), 33 U.S.C. § 1319(a), to Chaffee Excavating, a septage waste hauler located at 477 East Thumb Lake Road, Vanderbilt, Michigan, requiring Chaffee Excavating to comply with an information request issued by Region 5 on May 6, 2004, under Section 308 of the CWA, 33 U.S.C. § 1318, relating to Chaffee Excavating’s compliance with the domestic septage land application requirements set forth at 40 C.F.R. Part 503. Chaffee Excavating refused to submit the requested information, challenging U.S. EPA’s authority to issue information requests on numerous grounds and returning a copy of the information request with the phrase “Refused for Cause Without Dishonor” handwritten on each page. The parties subsequently engaged in correspondence, but Chaffee Excavating maintained its challenge to U.S. EPA’s jurisdiction and still refused to provide the requested information. The Compliance Order resulted. Section 309(a)(4) of the CWA requires U.S. EPA to provide Chaffee Excavating with an opportunity to confer before the order becomes effective.

Primary Contact: Kevin Chow, (312) 353-6181; Additional Contact: Valdis Aistars, (312) 886-0264

Ohio Man Pleads Guilty to Making False Statements to the Ohio Environmental Protection Agency; United States v. Valentin D. Ducu. On August 12, 2004, Valentin D. Ducu pled guilty to a one-count indictment for making materially false statements in violation of 18 U.S.C. § 1001. According to the indictment filed July 8, 2004, Ducu provided false information to the Ohio Environmental Protection Agency when he applied to take the state’s examination for certification to operate one of the state’s drinking water plant facilities. The indictment charged that Ducu falsely represented in his application that he held a Bachelor of Science degree and was currently working as a level II water plant operator at a drinking water plant facility. At the hearing Ducu admitted that he does not hold a Bachelor of Science degree and was never employed by the drinking water plant facility for which he claimed to work. This case was investigated, in a joint investigation, by the Ohio Bureau of Criminal Identification and Investigation, the Ohio Environmental Protection Agency, and U.S. EPA CID, all members of the Northeast Ohio Environmental

Crimes Task Force. Contact: Brad Beeson (440) 250-1761

Region 5 Signs FIFRA Consent Agreement with Champion Packaging and Distribution, Inc. On April 16, 2004, Region 5 filed a combination Complaint/Consent Agreement and Final Order (CAFO) simultaneously initiating and resolving Respondent’s Federal Insecticide, Fungicide, and Rodenticide Act (FIFRA) Section 12 violations. The Region alleged that Respondent sold and distributed a chlorine product that contained less sodium hypochlorite than the amount expressed on the product label. Region 5 agreed to reduce the proposed penalty amount of $4,400 after taking into consideration Champion’s cooperation and good faith efforts to comply throughout the enforcement process. Consequently, the CAFO requires Champion to pay a penalty of $3,520.

Contacts: Carlos Evans (312) 886-2149 and Tony Silvasi (312) 886-6878.

Region 5 issues Notice of Violation to CNW, Inc. and CNW Acquisition, LLC, Cincinnati, Ohio. In July of 2003, CNW, Inc. and CNW Acquisition, LLC, collectively “CNW” voluntarily disclosed to U.S. EPA violations of the Clean Water Act, the Clean Air Act, the Resource Conservation and Recovery Act, and the Emergency Planning and Community Right to Know Act. These violations included failure to obtain required permits; failure to comply with hazardous waste training, labeling and reporting requirements; and failure to submit Toxic Release Inventory forms. CNW voluntarily disclosed these violations under U.S. EPA’s April 11, 2000 Small Business Compliance Policy (65 Fed. Reg. 19630). The Small Business Compliance Policy promotes compliance among small businesses with the laws and regulations which protect human health and the environment by providing incentives for voluntary discovery, prompt disclosure, and prompt correction of violations. If certain specific criteria are met, reductions in gravity based penalties of up to 100% are available under the Small Business Compliance Policy. Violations that caused actual serious harm to the environment or present an imminent and substantial endangerment to the environment are not eligible for relief under the Policy. After reviewing CNW’s voluntary disclosure under the Policy, the Region issued on August 13, 2004 a Notice of Violation and Final Determination that CNW’s disclosure met all the conditions of the Policy and that the Region would therefore not seek any penalty for the disclosed violations.

Contact: Erik Olson, 312-886-6829

Region 5 files a Consent Agreement and Final Order to commence and conclude case against Aexcel Corporation, Mentor, Ohio. On September 28, 2004, Region 5 filed a Consent Agreement and Final Order (CAFO) simultaneously commencing and concluding an administrative penalty action against Aexcel Corporation for violations of the National Volatile Organic Compound (VOCs) Emissions Standards for Architectural Coatings, 40 CFR Part 59, Subpart D. VOCs are contaminants that evaporate into the aireasily. The CAFO requires Aexcel to pay a penalty of $20,000 and complete a Supplemental Environmental Project (SEP) costing $51,000. Aexcel’s SEP involves reformulating architectural coating products such that they result in a reduction of 25,000 pounds of VOCs per year (based upon 2003 sales of products replaced). On March 29, 2004, Region 5 issued a Finding of Violation (FOV) to Aexcel for allegedly improperly labeling containers of architectural coatings and exceeding the VOC content limits for certain coatings. In response to the FOV, Aexcel modified its labels to contain the required information, discontinued the sale of some coatings, and has made payments of past due VOC exceedance fees. These efforts remedied the violations. As a result of Aexcel’s cooperation, good faith, and other factors as justice may require, Region 5 determined that it was appropriate and consistent with the penalty policy to mitigate its planned proposed penalty of $87,306 to a settlement penalty of $54,567. Region 5 further determines that it was appropriate and consistent with the SEP Policy to mitigate the settlement penalty to $20,000, in light of the commitment to perform the SEP.
Contact: Mony Chabria, 312-886-6842.

Region 5 files a combined Administrative Complaint and Consent Agreement and Final Order with Co-Operative Plating Company. On September 30, 2004, Region 5 filed a combined administrative complaint and Consent Agreement and Final Order (CAFO) resolving allegations related to its facility in St. Paul, Minnesota. The settlement agreement requires Co-Operative Plating to pay a civil penalty of $7,136.00 within 30 days of the effective date of the CAFO, to revise its inspection log and improve inspection procedures, and perform tank tightness tests on tanks located at the facility.

In a Pre-Filing Notice Letter, issued July 28, 2004, U.S. EPA alleged that Co-Operative Plating failed to (1) obtain a certified professional engineer’s assessment of the structural integrity of seven above ground tank systems used to store hazardous waste at the facility, (2) obtain a certification by a professional engineer that the seven tank systems were properly installed, (3) test the seven tank systems for tightness prior to use, (4) inspect on a daily basis the above ground piping used to transfer waste from processing areas to the storage tanks, (5) provide the home addresses for all of the emergency coordinators in the facility’s contingency plan and provide the home phone numbers for two of them, and (6) label one full satellite accumulation container of hazardous waste with the accumulation date. In response to the Pre-Filing Notice Letter, Co-Operative Plating provided U.S. EPA with information that demonstrated that it had substantially complied with the applicable regulations when it resolved an earlier enforcement action brought by the Minnesota Pollution Control Agency. A proposed penalty of $236,262 was mitigated to $7,136 in the Settlement Agreement.

Contact: Steven Kaiser, primary contact 312-353-3804; Larry Kyte, additional contact 312-886-4245.

Enforcement in Region 5
EPA Compliance and Enforcement

Enforcement Action Summary FY 2004- A to D

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