Region 5 - Office of Regional Counsel

State of Wisconsin

A & R Katz Management, Inc.
Abbyland Foods, Inc & Schoeps Ice Cream Co., Inc.
Ace Ethanol Company
Amber Oil
Courneyor, Paul d/b/a Courneyor Septic Services
Kohl's Food Store, Inc.
Mulehide Products Company, Inc.
Packaging Corporation of America
Promotions Unlimited Corporation
Smith, Michael L. and Lawrence J. Williams  (12/10/03)
Smith, Michael L. and Lawrence J. Williams  (05/05/04)
Smith, Michael L. and Lawrence J. Williams  (07/14/04)

Two Wisconsin Men Charged With Illegal Asbestos Removal At Lutheran Church.  On December 10, 2003, Michael L. Smith and Lawrence J. Williams were charged by a federal grand jury with illegally removing a sprayed-on asbestos coating from the ceilings of a number of classrooms located in a Lutheran Church in Mt. Horeb, Wisconsin in July, 2002. According to the charges filed, Smith owns Smith Renovations, a firm which specializes in church renovation work. Williams works for Smith. In 2002, Smith Renovations agreed with the Evangelical Lutheran Church in Mt. Horeb to remove asbestos-containing ceiling material and floor tile. As neither of the defendants was licensed to perform asbestos removal work, they contacted a licensed asbestos abatement firm; however, the defendants only told the licensed firm about the floor tile, not the ceiling work Smith and Williams then removed most of the ceiling material themselves, without following Clean Air Act requirements for asbestos abatement work. The indictment charges Smith and Williams with violating the Clean Air Act by failing to notify an environmental agency prior to the removal activity, failure to wet the material removed to prevent hazardous asbestos dust from being emitted, failure to use labels on the bags of waste which would warn those nearby of the cancer and lung disease hazard, and failure to have taken training in proper removal techniques. Both men were also charged with conspiracy. If convicted, each man faces up to 5 years imprisonment on each count of the five-count indictment, as well as a fine of up to $250,000 on each count.

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

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 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

U.S. EPA CERCLA AOC effective 3/3/04 for Amber Oil site, Milwaukee, Wisconsin.  On February 27, 2004, U.S. EPA signed an Administrative Order on Consent pursuant to CERCLA Sections 104, 106(a), 107, and 122, which became effective on March 3, 2004. Under the terms of the AOC, the 55 settling respondents will clean up this abandoned 2-acre facility, which is situated in a mixed residential and industrial neighborhood on the Menomonee River, four miles from where the river empties into Lake Michigan. The facility was abandoned with waste oil and waste coolants remaining on and being released at the site. The settlors will clean and remove the tank farm near the shore of the river, consisting of fourteen giant tanks, as well as two buildings on site, and all drums, underground storage tanks, and above-ground tanks in one of the buildings, as well as any waste in those ASTs, USTs, and drums. The estimated value of the clean-up is $900,000. Under the terms of the AOC, the settling respondents will also pay the U.S. EPA $15,000 in unreimbursed past costs, all of its over $35,000 in interim response costs, and all of its costs in overseeing the clean-up performed by the settlors. The 55 settling respondents are funding approximately 90% of the total CERCLA response costs for this site.

The Amber Oil site operated for almost 70 years: first as an oil refinery, next as a bulk oil storage facility, and finally, as a transfer facility which accepted waste oil, waste coolants, and other waste materials containing paint waste, ink waste, and some solvents from many industrial generators. Operation of the Amber Oil site as a transfer facility lead to the problems currently posed by the release or threat of a release of CERCLA hazardous substances such as heavy metals, nuclear polyaromatic hydrocarbons, volatile organic compounds, and semi-volatile organic compounds. The site on the Menomonee River is only one-mile upstream from the Menomonee River Great Lakes Area of Concern and four miles from Lake Michigan.

Contact: Jerome Kujawa, 312-886-6731.

The United States, the State of Wisconsin and Murphy Oil USA, Inc. enter into an agreement on Stipulated Penalties.  Region 5 and the State of Wisconsin have entered into an agreement with Murphy Oil USA, Inc., resolving stipulated penalties for the period from March 1, 2003 through and including December 31, 2003.  These stipulated penalties arise from a Consent Decree entered in the Western District of Wisconsin on March 19th, 2002. Murphy Oil will pay $250,000 for all reported failures to comply with the sulfur dioxide (SO2) emission limitations for the Sulfur recovery unit at the Superior Refinery as set forth in the Consent Decree.

Primary Contact: Jose C. de Leon, 312-353-7456;
additional contact: Donald Law, 312-886-6024

Jury Convicts Two of Illegal Asbestos Removal at Church Sunday School On May 5, 2004 a federal jury in Madison, Wisconsin convicted Michael Smith, 43, and Lawrence Williams, 58, of violating the Clean Air Act by illegally removing asbestos at the Evangelical Lutheran Church in Mt. Horeb, Wisconsin in 2002. Sentencing was set for July 14, 2004. Smith and Williams were partners in Smith Renovations, a Janesville, Wisconsin company that specializes in church renovation work. In April 2002, Smith and Williams bid on and obtained a contract to renovate the Evangelical Lutheran Church in Mt. Horeb. A church representative told them that the ceiling in the church classrooms contained asbestos prior to the work starting. Nevertheless, in July 2002, Smith and Williams, using putty knives, scraped the asbestos-containing coating from the ceilings of numerous classroom ceilings. Neither defendant followed any of the work practices required under the Clean Air Act to prevent emissions of asbestos, including giving advance notice to the State of Wisconsin of the project, adequately wetting the asbestos while stripping it, bagging the waste in leak-tight containers labeled with warnings stating “Asbestos Dust Hazard” and “Cancer and Lung Disease Hazard,” and having a properly trained representative on-site. The jury convicted Smith of four of five counts relating to the Clean Air At violations, acquitting him of a conspiracy count. Williams was convicted of one count relating to failure to properly bag and label asbestos waste.

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

Region 5 Files a Combined Complaint and Consent Agreement with Promotions Unlimited Corporation of Racine, Wisconsin. Region 5 initiated pre-filing discussions on this matter in March of 2004. The proposed penalty was $8,800. On June 17, 2004, Region 5 filed a combined complaint and consent agreement with Promotions Unlimited Corporation, to settle violations of 12(a)(1)(A) of FIFRA that occurred when Promotions Unlimited Corporation sold two unregistered products. Promotions Unlimited Corporation has agreed to pay a penalty of $8,800.
Contact: Nidhi O’Meara, primary contact 312-886-0568;
Joseph Lukascyk, additional contact 312-886-6233.

Packaging Corporation of America, Tomahawk, Wisconsin, implements alternative control technology.   On June 14, 2004, a direct final rule, developed by Region 5, went into effect that allows Packaging Corporation of America’s (PCA), Tomahawk, Wisconsin, semi-chemical pulp and paper mill to implement an alternative control technology in lieu implementing the control technology prescribed by the Pulp and Paper Industry “National Emissions Standards for Hazardous Air Pollutants” NESHAP.  In lieu of incinerating the HAPs from the air stack of the low volume, high concentration (LVHC) system (as contemplated by the NESHAP), PCA will condense the HAPs from the LVHC system and treat them via biodegradation in the Tomahawk Mill’s anaerobic wastewater treatment system.  By doing so, PCA will achieve a greater than five-fold increase in HAP destruction over what would have been achieved through compliance with the Pulp and Paper Industry NESHAP. This site-specific rule is an important achievement under the Joint State/EPA Agreement to Pursue Regulatory Innovation. In that agreement, EPA and senior state officials jointly committed to encourage new and innovative approaches to improving the nation’s environment. The direct final rule provides PCA with significant cost savings since the facility will not need to install a thermal oxidizer, and yet achieves greater environmental benefits than what would have been achieved through compliance by the Pulp and Paper Industry NESHAP.

In the course of preparing its Tomahawk, Wisconsin facility to comply with the soon-to-be effective Pulp and Paper Industry NESHAP, PCA discovered that compliance with NESHAP standard would result in only a slight reduction of HAP emissions. PCA proposed to WDNR that, in lieu of incinerating the gases from the LVHC system as required by the NESHAP, the facility be allowed to condense the gasses and biologically treat them in its anaerobic wastewater treatment system. PCA believed, and the Office of Air Quality and Planning Standards (OAQPS) confirmed, that anaerobic treatment of the foul condensates could potentially achieve a 6-fold increase in HAP reduction over what would have been achieved through compliance with the NESHAP. The WDNR subsequently proposed the alternative treatment technology project under the ECOS program. With Region 5's assistance, WDNR and PCA finalized an Environmental Cooperative Agreement. Region 5 thereafter developed compliance parameters and a site-specific rule implementing the project.

Primary contacts: Eileen L. Furey 312-886-7950; Eaton Weiler 312-886-6041.

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

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.

Illegal Asbestos Removers at Wisconsin Church Sunday School Sentenced.   On July 14, 2004 Michael Smith, 43, and Lawrence Williams, 58, were sentenced following their conviction by a federal jury of illegally removing asbestos at the Evangelical Lutheran Church in Mt. Horeb, Wisconsin in July, 2002. Smith was sentenced to 6 months of community confinement, 5 years of probation, and required to pay the Church restitution totalling $50,380. Williams was sentenced to 3 months of community confinement, 5 years of probation, and, jointly and severally with Smith, required to make restitution of $50,380. Smith and Williams were partners in Smith Renovations, a Janesville WI company specializing in church renovation work. In April, 2002, Smith and Williams bid on and obtained a contract to renovate the Evangelical Lutheran Church in Mt. Horeb. Although a church representative told them that the ceiling in the church classrooms contained asbestos, nevertheless Smith and Williams scraped the ceilings of numerous classrooms before they were stopped by a licensed asbestos abatement contractor who was at the site to perform other work. Wisconsin DNR inspector. The jury convicted Smith of violating the Clean Air Act by failing to 1) give advance notice of the project to the State of Wisconsin, 2) adequately wet the asbestos while stripping it, 3) bag the waste in leak-tight containers labeled with warnings stating “Asbestos Dust Hazard” and “Cancer and Lung Disease Hazard,” and 4) having a properly trained representative on-site. Williams was convicted of failing to bag the waste in leak-tight and properly labelled containers.

Primary contact: David Taliaferro at (312) 886-0815.

Region 5 files a Consent Agreement and Final Order to commence and conclude case against Mule-Hide Products Co., Inc., Beloit, Wisconsin. On September 24, 2004, Region 5 filed a Consent Agreement and Final Order (CAFO) simultaneously commencing and concluding an administrative penalty action against Mule-Hide Products Co., Inc., for violations of the National Volatile Organic Compound (VOC) Emissions Standards for Architectural Coatings, 40 CFR Part 59, Subpart D. VOCs are contaminants that evaporate into the air easily. The CAFO requires Mule-Hide to pay a penalty of $22,000. On March 29, 2004, Region 5 issued a Finding of Violation (FOV) to Mule-Hide for allegedly failing to submit an initial notification report and improperly labeling containers of architectural coatings. In response to the FOV, Mule-Hide submitted an initial notification report and began providing required information on their product labels using stickers. These efforts remedied the violations. As a result of Mule-Hide’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 $32,500 to a settlement penalty of $22,000.

Contact: Mony Chabria, 312-886-6842.