Region resolves RCRA Transportation
case against chemical broker PAR Services, Inc.
On September 27, 2004, Region 5 filed a combination Complaint/Consent
Agreement and Final Order (CAFO) simultaneously initiating and resolving
an administrative compliance action against PAR Services Company
(PAR) of Fort Wayne, Indiana. The Region alleged that PAR, a chemical
broker, transported hazardous waste without an identification umber,
and accepted hazardous waste for transport without hazardous waste
manifests, as required under the Resource Conservation and Recovery
Act (RCRA), and RCRA regulations promulgated at 329 IAC 3.1-8-1
and 8-2 [40 CFR 263.11, 263.20(a) and 263.22(a)]. The determination
of violations in this case is based on information provided by PAR;
the 3M Company relating to its Cordova, Illinois facility; and information
developed in the Region’s related case against Milsolv Minnesota
Corporation (Milsolv).
As part of development of the Milsolv case, the Region (with assistance
fromthe National Enforcement Investigation Center (NEIC)) determined
that the isopropanol waste at issue was not a byproduct of a 3M
manufacturing process, but a spent material that has been used and
as a result of being used has become contaminated by physical or
chemical impurities that could no longer serve the purpose for which
it was produced, and was a characteristic hazardous waste. This
determination was upheld in a June 11, 2004 decision in the Milsolv
case by Administrative Law Judge Charneski.
PAR, 3M and Milsolv argued that the material was a product (or
co-product) and was not a waste. PAR never took physical possession
of the material (it arranged for 3rd parties to truck the isopropanol
material from 3M to Milsolv) and denied that an identification number
or manifests were required. 3M no longer generates the waste at
issue, and PAR no longer arranges for its transportation, thus the
violations alleged have ceased. After the decision in the Milsolv
case, PAR has agreed to resolve this matter. Based on the facts
and circumstances, the Region deemed it appropriate to settle with
PAR for terms that include a compliance order with steps that PAR
agrees to implement to prevent similar situations, and no civil
penalty amount. The CAFO’s non-assessment of a civil penalty
is based on factors which include PAR’s co-operation in the
investigation of the violations against 3M and Milsolv, PAR’s
cooperation in negotiating this resolution, and PAR’s prompt
agreement to settle this matter prior to the filing of a Complaint.
Primary Contact: Andre Daugavietis, 312-886-6663.
U.S. EPA resolves violations of the
Clean Air Act by entering into an Administrative Consent Order with
Erler Industries, Inc. - On September 28, 2004, Region
5 and Erler Industries, Inc. entered into an Administrative Consent
Order to resolve alleged violations of the Clean Air Act. The Order
requires Erler to install within sixty days three regenerative thermal
oxidizers and reduce emissions of volatile organic compounds (VOCs)
from three production lines by ninety-five percent. VOCs are contaminants
that evaporate into the air easily. U.S. EPA estimates that this
will result in a reduction of emissions of volatile organic compounds
totaling 250 tons per year. Erler Industries operates a coatings
facility in North Vernon, Indiana. It coats plastic parts, including
the plastic exteriors of cell phones. Erler operates under a series
of permits issued by the Indiana Department of Environmental Management.
The IDEM permits limit the emissions of volatile organic compounds.
During the Spring of 2004, Region 5 conducted a compliance inspection
of the Erler facility. On the basis of information gathered during
the inspection and a related record review, U.S. EPA concluded that
Erler Industries was exceeding its permit limits for VOC emissions.
On June 17, 2004, U.S. EPA issued a notice of violation alleging
that Erler Industries violated the Indiana State Implementation
Plan (SIP) by failing to comply with 326 IAC 8-1-6, failing to properly
monitor, record and report VOC emissions, and exceeding existing
permit limits for VOC emissions. The Administrative Consent Order
secures Erler’s commitment to install the three regenerative
thermal oxidizers and reduce VOC emissions from three production
lines by ninety-five percent.
Primary Contacts: Steven Kaiser, ORC, 312-353-3804 and Kushal Som,
AECAB, 312-353-5792.
Former State Inspector and Contractor
Indicted for Lying. On December 14, 2004, a federal grand
jury handed up charges against Bi State Pipe Co., Inc., of Mt. Carmel,
IL, Carl F. Hanisch, of Mt. Carmel, IL, and Donald G. Veatch, of
Francisco, IN, alleging that all three defendants made false statements
concerning a well plugging operation. According to the charges filed,
in 1999 a number of inactive wells in Vandenburgh County, IN, were
leaking oil, and had contaminated a pond and a tributary of the
Ohio River. Consequently, the Bi State Pipe Co., Inc., was sub-contracted
to plug approximately 51 of the leaking wells. Carl F. Hanisch was
a co-owner of Bi State Pipe Co., Inc. At the time of the alleged
illegal conduct, Donald G. Veatch was an inspector for the Indiana
Department of Natural Resources’ Division of Oil and Gas and
was assigned to oversee the plugging of oil and injection wells.
According to the Indictment, Hanisch and Veatch falsely certified
that cast iron bridge plugs had been installed in 21 of the wells.
A cast iron bridge plug is a mechanical device designed to prevent
oil from flowing upwards through a well and contaminating a freshwater
zone. On the forms, Hanisch and Veatch each certified that the information
included on the form was “correct and accurate to the best
of my knowledge.” The forms were subsequently submitted to
the Indiana Department of Natural Resources.
The Indiana Department of Environmental Management paid for the
well remediation activities using its Hazardous Waste Site Cleanup
Fund and was later reimbursed from the federal Oil Spill Liability
Trust Fund. The Indiana Department of Environmental Management was
billed a total of $269,949.85 for the clean-up project, which was
then reimbursed by the federal fund.
If convicted, Hanisch and Veatch face punishment of up to 5 years
imprisonment on each of the 21 counts in the indictment, as well
as a fine of up to $250,000. If convicted, the Bi State Pipe Co.,
Inc. faces a fine of up to $500,000 on each count. The public is
reminded that an indictment is only accusation, and that all defendants
are entitled to a fair trial at which proof beyond a reasonable
doubt must be shown.
The case was investigated by EPA CID Special Agent Jeff Denny,
with contributions from the members of the Indiana Interagency Environmental
Crimes Task Force. The case is being prosecuted by Assistant United
States Attorney Steven D. DeBrota and RCEC David M. Taliaferro,
who has been appointed as a Special Assistant United States Attorney.
Primary Contact: David M. Taliaferro, Regional Criminal Enforcement
Counsel (312) 886-0815.
Region 5 Signs CERCLA 103 and EPCRA
304 Consent Agreement with Perdue Farms, Incorporated, Washington,
Indiana. On October 13, 2004, Region 5 filed a Consent
Agreement and Final Order (CAFO) resolving Perdue Farm Inc.’s
(Perdue) Comprehensive Environmental Response, Compensation and
Liability Act (CERCLA) Section 103 and Emergency Planning and Community
Right-To-Know Act (EPCRA) Section 304 violations. On June 14, 2004,
the Region filed a Complaint against Purdue alleging its failure
to immediately notify the National Response Center and the Indiana
State Emergency Response Commission after releasing ammonia, a hazardous
substance, at its Washington, Indiana facility. Region 5, in being
consistent with the Enforcement Response Policy for EPCRA Sections
304, 311, and 312 and CERCLA Section 103, agreed to reduce the proposed
penalty amount of $34,376 after taking into consideration Respondent’s
immediate response to the release, cooperation throughout the enforcement
process, and quick settlement of the violations. Consequently, the
CAFO requires Respondent to pay a penalty of $17,876.
Contacts: Carlos Evans (312) 886-2149 and Ruth McNamara (312) 353-3193.
Region 5 Settles Unregistered Pesticide
Distribution Case with Bayer CropScience L.P.
On December 28, 2004, EPA filed a Consent Agreement and Final Order
with Bayer CropScience L.P. (“Bayer”) settling a two
count civil administrative complaint alleging violations of the
Federal Insecticide, Fungicide, and Rodenticide Act (FIFRA). The
complaint, filed September 10, 2004, specifically alleged that the
Respondent violated FIFRA by distributing or selling two types of
unregistered pesticides to Action Pest Control in Evansville, Indiana.
The Complaint proposed a penalty of $11,000. In consideration of
Bayer’s attitude during settlement negotiations, and its commitment
to take certain steps to ensure compliance with FIFRA in the future,
EPA settled this case with them for a penalty amount of $8,800,
which represents a 20 percent reduction of the initial proposed
penalty.
Primary Contact: Mark Palermo, (312) 886-6082
EPA settles Aspen Pines TSCA lead (PB)
disclosure matter. On December 1, 2004, EPA issued
a Consent Agreement and Final Order (CAFO) under Section 16 (a)
of the Toxic Substances Control Act ( TSCA), 15 U.S.C. § 2615(a),
and Sections 22.1(a)(5), 22.13 and 22.18 resolving claims for civil
penalties for a violation of Sections 409 and 1018 of TSCA, 15 U.S.C.
§ 2689 and 42 U.S.C. § 4852d(b)(5), and 40 C.F.R. §
745.113(b)(3). These laws require a lessor to include, either within
each contract or as an attachment to each contract to lease target
housing, a list of any records or reports available to the lessor
regarding lead-based paints and/or lead-based paint hazards in the
target housing or a statement that no such records exist before
a lessee is obligated under the contract to lease target housing.
The CAFO simultaneously commences and concludes EPA’s action
for that alleged violation of the Disclosure Rule in a 2001 lease.
EPA calculated a gravity based proposed penalty of $2,200; but determined
that a 32 percent reduction was appropriate based upon the 30 percent
attitude reduction in the Section 1018 Disclosure Rule Enforcement
Response Policy and consideration of litigation risks. There was
no economic benefit associated with the alleged violation. Under
the settlement, Aspen Pines will pay a penalty of $1,500. The CAFO
settles civil and administrative claims alleged in Section V of
the CAFO, and is conditioned upon the accuracy of Aspen Pines representations.
Primary contact: Maria Gonzalez, Associate Regional Counsel, (312)
886-6630.
On November 24, 2004, U.S. EPA Issued a Clean Water Act
Section 311 (OPA) Administrative Order on Consent for the Bowman
Creek (3) Oil Spill Site, to the Northern Indiana Public
Service Company (NIPSCO), for Performance of a Removal Action
and Cost Reimbursement at the Bowman Creek (3) Site in South
Bend, Indiana (St. Joseph County). This AOC requires NIPSCO to
perform removal actions and to reimburse U.S. EPA and the U.S.
Coast Guard for oversight costs at the Bowman Creek (3)(South
Bend, St. Joseph County, Indiana) Oil Spill site. NIPSCO
is required to address and remove all oil and oily-like substances
entering Bowman Creek as a result of coal tar and other petroleum-related
discharges from the upstream NIPSCO South Bend, IN facility.
Pursuant to the Order, under the direction of a U.S. EPA on-scene
coordinator and to the extent necessary to abate an imminent
and substantial threat to the public health or welfare at Bowman
Creek, NIPSCO will address the ground and surface water, soils,
and creek contamination from the Bowman Creek (3) Oil Spill Area. NIPSCO
is currently addressing long-term source control matters at its
facility through the Indiana Department of Environmental Management
voluntary clean-up program.
Bowman Creek is a tributary of the St. Joseph River in northern Indiana and a
navigable water of the United States under the CWA. Bowman Creek passes through
South Bend, IN. In February 2000, a release of diesel oil from the area of the
Grand Trunk Western Railroad (GTWR) facility adjacent to the north bank (and
downstream from the current Site) of Bowman Creek prompted a State of Indiana
investigation and referral to US EPA. US EPA negotiated and issued a CWA Section
311 AOC to GTWR in March 2000 (Bowman Creek Site 1). The GTWR work was completed
in 2002, except for oversight and maintenance (Bowman Creek Site 2) which is
on-going. At the conclusion of its removal work, GTWR conducted a study and reported
to U.S. EPA that an additional source of petroleum discharge to Bowman Creek
was discernible from an upstream source. Follow up investigation by U.S. EPA
determined that NIPSCO was responsible for the upstream contamination. In Spring
2004, U.S. EPA began formal negotiations with NIPSCO in order to address the
oil discharge. An AOC was negotiated, and issued on November 24, 2004.
Primary Contact: Thomas Turner, Associate Regional Counsel, 312-886-3337.
Region 5 Settles Unregistered Pesticide Distribution Case
with Bayer CropScience L.P.
On December 28, 2004, EPA filed a Consent Agreement and Final Order with Bayer
CropScience LP. (“Bayer”) settling a two count civil administrative
complaint alleging violations of the Federal Insecticide, Fungicide, and Rodenticide
Act (FIFRA). The complaint, filed September 10, 2004, specifically alleged that
the Respondent violated FIFRA by distributing or selling two types of unregistered
pesticides to Action Pest Control in Evansville, Indiana. The Complaint proposed
a penalty of $11,000. In consideration of Bayer’s attitude during settlement
negotiations, and its commitment to take certain steps to ensure compliance with
FIFRA in the future, EPA settled this case with them for a penalty amount of
$8,800, which represents a 20 percent reduction of the initial proposed penalty.
Primary Contact: Mark Palermo, (312) 886-6082
Region 5 Signs a Consent
Agreement and Final Order and Administrative Consent Order with
DaimlerChrysler Corporation. On January 19, 2005,
Region 5 and DaimlerChrysler Corporation entered into a Consent
Agreement and Final Order (CAFO) settling an action for Clean
Air Act (the Act) violations before the filing of a complaint.
The alleged violations occurred at the Kokomo Transmission Plant
in Kokomo, Indiana. The CAFO requires DaimlerChrysler to pay
a penalty of $110,000 for violations of the prevention of significant
deterioration (PSD) requirements in Section 165(a) of the Clean
Air Act, 42 U.S.C. § 7475(a), the PSD regulations at 40
C.F.R. § 52.21, the federally-approved Indiana PSD regulations
at 326 IAC 2-2, and the Title V permit provisions in Sections
503(c) and 504(a) of the Act, 42 U.S.C. §§ 7661b(c)
and 7661c(a). The violations are based on modifications DaimlerChrysler
(formerly Chrysler Corporation ) made to three coal-fired boilers
in 1984 that resulted in significant net emission increases of
particulate matter (PM), sulfur dioxide (SO2),and nitrous oxides
NOx.(nitrous oxides) Chrysler failed to obtain a PSD construction
permit and implement Best Available Control Technology (BACT)
standards for the three coal-fired boilers and to submit a complete
Title V permit application that includes all applicable requirements,
that accurately certified compliance with such requirements,
and that contained a compliance plan for all applicable requirements
for which the source was not in compliance (including the requirement
to meet BACT).
On January 12, 2005, the Region and DaimlerChrysler entered into an Administrative
Consent. Order that requires the Company to implement
a compliance program to resolve the violations alleged in the CAFO. The compliance
program requires DaimlerChrysler to submit a permit application to the Indiana
Department of Environmental Management (IDEM) which includes a schedule for the
permanent shutdown of the three coal-fired boilers, interim control measures
for these boilers, monitoring for compliance with the interim control measures
and a commitment to never use or sell any SO2 and PM emission reductions and
to never use more than 60 tons per year in NOx emission reductions generated
as a result of the shutdown of the coal-fired boilers. DaimlerChrysler has already
submitted an permit application to IDEM for construction of two natural gas and
fuel oil-fired boilers that will replace the coal-fired boilers. Based on 2003
emissions, the replacement project will result in a reduction of approximately
697 tons per year of SO2, 106 tons per year of NOx and 57 tons per year of PM.
Primary contact: Christine Liszewski, (312) 886-4670; Kushal Som, additional
contact (312) 353-5792
Region 5 files a Consent Agreement and Final Order to
settle case against Aluminum Recovery Technologies, Inc., Kendallville,
Indiana. On March 11, 2005, Region 5 filed a Consent
Agreement and Final Order (CAFO) resolving an administrative
penalty action against Aluminum Recovery Technologies, Inc.,
(ART) for violations of the National Emission Standard for Hazardous
Air Pollutants (NESHAP) for Secondary Aluminum Production, 40
CFR Part 63, Subpart RRR. The CAFO requires ART to pay a penalty
of $100,000 plus interest payable in four installments. On September
24, 2004, Region 5 issued an Administrative Complaint for the
alleged violation of a requirement of Subpart RRR. Specifically,
Region 5 alleged that ART exceeded the emission limits for dioxin/furan
emissions from thermal chip dryers. In the complaint, Region
5 sought a penalty of $150,000. During the settlement negotiations
in this matter, ART raised legal and equitable issues which caused
Region 5 to make reductions in the penalty. ART has demonstrated
that it currently is in compliance with the requirements of Subpart
RRR. As a result of ART’s cooperation, good faith efforts
to comply, ability to pay, and litigation risks, Region 5 determined
that it was appropriate and consistent with the penalty policy
to mitigate its proposed penalty of $150,000 to a settlement
penalty of $100,000.
Contact: Mony Chabria, 312-886-6842
Region 5 approves Indiana E. Coli
TMDL for the Middle West Fork of the White River.
In an effort to achieve the Clean Water Act goal of “fishable, swimmable” waters,
Section 303(d)of the Clean Water Act and U.S. EPA’s implementing regulations
at 40 C.F.R. Part 130 require states to develop Total Maximum Daily Loads (“TMDLs”)
for pollutants in impaired waters. On July 21, 2005, the Region approved the
TMDL submitted to U.S. EPA by Indiana Department of Environmental Management
to address E. coli levels in the Middle West Fork of the White River, an impaired
water in Southwest Indiana covering three counties below Indianapolis. The TMDL
establishes the maximum daily load of E. coli coming from point and non-point
sources at which the Creek still meets the applicable water quality standard.
The Region’s review ensures that the TMDL and its supporting documentation
meet statutory and regulatory requirements.
Contact: Robert S. Guenther, primary contact 312-886-0566; Jean Chruscicki, additional
contact 312-353-1435
Region 5 Settles Clean Air Act Violations with
Intrametco Processing. Region 5 initiated this enforcement action
in April of 2004. On September 14, 2005, the Region signed a Consent Agreement
and Final Order with Intrametco Processing, Inc. of Evansville, Indiana to settle
violations of Section 112 of the Clean Air Act, 42 U.S.C. § 7412, and the
National Emission Standards for Hazardous Air Pollutants for Secondary Aluminum
Processing, 40 C.F.R. §§ 63.1500 through 63.1520. Intrametco processes
scrap aluminum into ingots for industrial use, and is required to comply with
EPA regulations for the control of the hazardous air pollutants dioxins and furans. The
violations alleged in this matter arose out the late emissions testing of three
regulated pieces of process equipment, two furnaces and a rotary scrap dryer,
and the subsequent failure of the scrap dryer to comply with emissions limits.
Under the terms of the settlement, Intrametco will pay a penalty of $42,500,
which represents the proposed penalty of $80,300 reduced for prompt correction
of environmental problems, cooperation during U.S. EPA’s prefiling investigation,
and other factors as justice requires. Intrametco previously agreed to decommission
the scrap dryer and have it removed from its operating permit in an Administrative
Consent Order filed in 2004.
Contact: Erik Olson, primary contact 312-886-6829; Joe Ulfig,
additional contact 312-353-8205
Region 5 issues Notice
of Violation to the Nishikawa Standard Company, Topeka, Indiana. Between
December 2003 and May 2005, the Nishikawa Standard Company, (NISCO)
voluntarily disclosed to U.S. EPA violations of Sections 5, 8
and 13 of the Toxic Substances Control Act, 15 U.S.C. §§ 2604,
2607 and 2612 (TSCA). NISCO’s violations included importing
a chemical not on the TSCA Inventory without submitting premanufacture
notice or obtaining a low volume exemption, failing to include
19 chemicals on its 2002 Inventory Update Report, and failing
to follow all TSCA certification requirements for certain chemical
imports dating from 1999 to 2004. NISCO voluntarily disclosed
these violations under U.S. EPA’s April 11, 2000 Self Disclosure
Policy, Incentives for Self-Policing: Discovery, Disclosure,
Correction and Prevention of Violations Final Policy Statement
(65 Fed. Reg. 19618). The Self Disclosure Policy has several
important goals, including encouraging greater compliance with
the laws and regulations which protect human health and the environment
through self-policing, discovery, disclosure, correction and
prevention. If certain specific criteria are met, reductions
in gravity based penalties of up to 100% are available under
the Self Disclosure Policy. On September 22, 2005, after reviewing
NISCO’s voluntary disclosure under the Self Disclosure
Policy, the Region issued a Notice of Violation and Final Determination
that NISCO’s disclosures met all the conditions of the
Policy and that the Region would therefore not seek any penalty
for the disclosed violations.
Contact: Erik Olson, primary contact 312-886-6829; Anthony Silvasi,
additional contact 312-886-6878
Region 5 signs an Administrative
Consent Order with Reilly Industries, Inc.
Region 5 initiated this enforcement action in March 2005, by issuing a Finding
of Violation citing Reilly Industries for violations of the Stratospheric Ozone
Standard at 40 C.F.R. Part 82, Subpart F, and Section 608 of the Clean Air Act.
On September 6, 2005, Region 5 signed an administrative consent order with Reilly
Industries requiring that the company comply with all applicable regulations
found in 40 C.F.R. Part 82, including but not limited to the service, maintenance,
repair, and disposal requirements set forth in Subpart F. Pursuant to the order,
Reilly Industries developed a program to improve its recordkeeping practices
under Part 82, including the recordkeeping practices of contractors hired by
Reilly to service its industrial process and comfort cooling refrigeration units.
Reilly also developed a program to study retrofitting its industrial process
and comfort cooling refrigeration units to non-ozone depleting substances.
Contacts: Deborah Carlson, Office of Regional Counsel 312-353-6121; Sheila Desai,
Air Division 312- 353-4150
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