Enforcement Action Summary FY 2005 - March

March 7, 2005

Drinking Water Plant Operator Pleads Guilty to Making False Statements; United States v. Jeffery A. Nichols. On March 3, 2005, Jeffery A. Nichols was charged and pled guilty in United States District Court to a one-count information charging him with falsifying reports to the Ohio Environmental Protection Agency (Ohio EPA) about the amount of chlorine in the water supply for the Village of Martinsville. According to a statement of facts filed with his plea, Mr. Nichols did not analyze the drinking water from the village’s water treatment plant for chlorine on more than 90 days that he was required to between October 2000 and September 2003. On those days, he made up analytical results for chlorine and reported those results to the Ohio EPA. Mr. Nichols faces a sentence of up to five years imprisonment, a fine of $250,000 and three years of supervised release. He could also be permanently banned from seeking any license or certificate relating to drinking water or wastewater, barred from working for or consulting in any matter relating to drinking water or wastewater. The plea agreement also calls for him to contribute $400 to the Clinton Streamkeepers, a not-for-profit organization whose mission is to preserve, improve and protect water quality in Clinton County. A date for sentencing was not scheduled.

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

Contact: Brad Beeson, Criminal Counsel, (440) 250-1761

Illinois man pleads guilty to state water pollution violation in Cook County, Illinois.
On February 22, 2005, in the Circuit Court of Cook County, Illinois, Jerome Nickleski was charged and pleaded guilty to a one-count complaint of knowingly threatening the discharge of a contaminant into a water of the State of Illinois by allowing the IMTT-Lemont Company’s main holding pond to open to a receiving stream when TSS in excess of the daily maximum and monthly average concentration limits in the Company’s permit were present. The violations occurred on or about February 23, 2000, April 10, 2000, and April 17, 2000. Defendant was sentenced to one year of supervision, 100 hours of community service and a $1,000 fine. The case was investigated by SA Daniel Sekerak and prosecuted by the Environmental Bureau of the State of Illinois Office of the Attorney General.

Primary contact: David Mucha (312) 886-9032

Region 5 Issues FIFRA Joint Complaint and Consent Agreement and Final Order to Dow AgroSciences LLC - On February 17, 2005, Region 5 issued a joint Complaint and Consent Agreement and Final Order to Dow AgroSciences LLC. (Dow), pursuant to Section 14(a) of the Federal Insecticide, Fungicide, and Rodenticide Act (FIFRA) which simultaneously commences and concludes the proceeding. Section 12(a)(1)(E) of FIFRA states that distribution and sale of a misbranded pesticide constitutes an unlawful act. In March and April 2001, an Ohio Department of Agriculture (ODA) inspector conducted authorized producer establishment inspections at Holmes Ag Service (HAS), located in Holmesville, Ohio. The inspector found that the pesticide product label for Dow’s product, “GLYPHOMAX PLUS” on a bulk storage tank at the HAS establishment did not contain the EPA establishment number of the establishment that had produced the pesticide product and did not contain the net contents of the bulk storage tank. In December 2001, an ODA inspector conducted an authorized producer establishment inspection at Mid-Wood, Inc. (Mid-Wood), located in Bowling Green, Ohio. The inspector found that the pesticide product label for Dow’s product, “GLYPHOMAX PLUS” on a bulk storage tank at the Mid-Wood establishment did not contain the EPA establishment number of the establishment that had produced the pesticide product. EPA originally assessed a penalty of $3,300 for each facility (for a total of $6,600). Consistent with the provisions of the Enforcement Response Policy for FIFRA, EPA adjusted the penalty downward $660 for “good attitude”. Accordingly, proposed civil penalty has been mitigated from $6,000 to $5,940.

Contact: Catherine Garypie, Associate Regional Counsel (312) 886-5825; Joseph Lukascyk, Enforcement Officer, (312) 886-6233

March 14, 2005

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

United States Settles Case with Dynegy Midwest Generation - On March 7, 2005, a
Consent Decree was lodged resolving Prevention of Significant Deterioration and New Source Performance Standards violations alleged by the United States against the Illinois Baldwin Power Plant owned and operated by Dynegy Midwest Generation, Inc. (DMG).

Under the settlement, DMG will spend $500 million between now and 2012 to install or upgrade existing state-of-the-art air pollution controls on more than 71 percent of its existing coal-fired megawatt generating capacity in Illinois. The Illinois plants covered in the agreement are in Baldwin, Havana, Hennepin, Oakwood and Alton. All of the units must comply with systemwide tonnage caps for sulfur dioxide (SO2) and nitrogen oxides (NOX) emissions that decline over time. The controls will result in the removal of approximately 283,000 tons of SO2 based on emission levels the year (1999) the U.S. filed its complaint against Illinois Power - a 90% overall reduction. The controls will result in the removal of approximately 58,200 tons of NOX based on emission levels the year (1999) the U.S. filed its complaint against Illinois Power - an 80% overall reduction. The settlement also requires DMG to retire 30,000 excess SO2 emission allowances per year from its Acid Rain allocations and restrict trade of its NOx allowances. Finally, the settlement requires DMG to install or upgrade particulate matter controls at nearly all of its units.
Contact: Mark Palermo, Office of Regional Counsel, (312) 886-6082

Former Company President Pleads Guilty to Clean Water Act Violations: United States v. Christian S. Perry. On March 9, 2005, Christian S. Perry pled guilty to illegally discharging partially treated wastewater into the City of Cleveland sewer system. Mr. Perry was the President of Techniplate, Inc. (Techniplate), an Ohio corporation, which is a metal plating operation located in Cleveland, Ohio. As a part of the metal plating process wastewater containing zinc, a toxic pollutant, is generated by s generated by Techniplate. To limit the amount of pollutants discharged into the sewer system Techniplate treats its wastewater using a pretreatment system. A byproduct of the pretreatment process is sludge. The sludge generated by Techniplate is a hazardous waste and must be disposed of properly.

The indictment, filed November 16, 2004, charged that from November 1999, through June 2001, on numerous days, Mr. Perry knowingly bypassed the wastewater treatment system at the Techniplate facility, discharging partially treated wastewater and sludge which contained zinc, a toxic pollutant, into the City of Cleveland sewer system. The second count of the indictment charged Mr. Perry with providing false information to the sewer district. The Government has agreed to dismiss this charge at the time of sentencing which is scheduled for May 31, 2005.

This case was investigated, in a joint investigation, by the Ohio Bureau of Criminal Identification and Investigation, the Ohio Environmental Protection Agency, the Northeast Ohio Regional Sewer District, the Defense Criminal Investigative Service, and U.S. EPA CID, all members of the Northeast Ohio Environmental Crimes Task Force.
Contact: Brad Beeson, Criminal Investigator, (440) 250-1761

March 21, 2005

On March 11, 2005 Region 5 filed a Consent Agreement and Final Order to conclude case against Rollprint Packaging Products, Inc. Addison, Illinois. On March 11, 2005 Region 5 filed a Consent Agreement and Final Order (CAFO) concluding an administrative penalty action against Rollprint Packaging Products, Inc., Addison, Illinois for violations of the Resource Conservation and Recovery Act (RCRA), 42 U.S.C. § 6901, et al., regulations concerning the generation and storage of hazardous waste at its facilities. The CAFO requires Rollprint to pay a penalty of $5,373 and complete a Supplemental Environmental Project (SEP) valued at over $100,000.  Rollprint’s SEP consists of developing and implementing an environmental management system (EMS) at its 320 and 335 S. Stewart Avenue, Addison, IL facilities. On September 29, 2004, EPA filed an administrative penalty order against Rollprint for not complying with the regulations concerning the generating and storage of hazardous waste. By instituting an EMS system at these facilities Rollprint will improve its ability to comply with the regulations concerning hazardous waste management and further insure the health and safety of its employees and the surrounding community. The proposed penalty in this matter was $27,665. Region 5 determined that it was appropriate and consistent with the SEP policy to mitigate the settlement penalty to $5373 in light of the commitment to perform the SEP.
Contact:  Michael Berman (312) 886-6837

Former Vice President of Hazardous Waste Handler Sentenced for Prison. Gazi George, the former Vice President of the City Environmental facility in Detroit, Michigan, which was formerly owned by Texas-based U.S. Liquids, Inc., was sentenced on March 16, 2005 in Detroit to 27 months imprisonment, 3 years supervised release, and a $60,000 fine, after pleading guilty to felony violations of environmental laws. City Environmental was a waste treatment facility located at 1923 Frederick Street in Detroit, Michigan. It was in the business of receiving, treating, hauling and disposing of liquid and solid hazardous and non-hazardous waste. The indictment alleged that Mr. George and Donald Roeser, former Plant Manager, were knowingly not treating the hazardous waste City Environmental received at it's central waste treatment facility from 1997 through 1999. Liquid hazardous waste was unlawfully discharged directly into a sewer through, among other methods, a covert bypass pipe. Solid hazardous waste was not treated and was instead sent to an unauthorized, non-hazardous waste landfill. Defendants were also charged with false sampling, false reporting and tampering with a monitoring device to advance their scheme. The indictment charged Mr. Roeser and Mr. George with conspiracy to violate the Clean Water Act, conspiracy to violate RCRA, violating the Clean Water Act by bypassing treatment and tampering with a monitoring device, and violating RCRA by transporting hazardous wastes to unpermitted facilities and making false statements; Defendants pleaded guilty to certain of these charges. In December 2004, Roeser was sentenced to 12 months imprisonment and a fine of $60,000. The corporation, U.S. Liquids of Detroit, Inc. pleaded guilty and paid a $5.5 million fine in 2002.

Primary contact: David Mucha (312) 886-9032

Environmental Appeals Board to Hear Oral Arguments in EDS UIC Permit Appeals. On March 16, 2005, the Environmental Appeals Board (Board) issued an order scheduling oral arguments in the appeal process of Environmental Disposal Systems, Inc.’s (EDS) two underground injection permits issued by EPA Region 5 on October 18, 2004. On May 10, 2005, the Board will hear arguments from Sunoco Partners Marketing and Terminals, Inc. (SPMT), the company that appealed the permits, from the Region, and from EDS. All three of these parties have briefed their positions to the Board. A separate appeal of the permits, filed by Mr. Alfred Brock, a local citizen, will not be the subject of oral arguments. Rather, the Board will decide Mr. Brock’s appeal on the parties’ written briefs and on the administrative record of the permit decision. As a result of the appeal petitions, the final permits are stayed. EDS still needs to procure a state RCRA license, for which it has applied, to operate the facility. SPMT is currently involved in other litigation with both EDS and EPA pertaining to these wells. On March 21, 2005, the Region received a petition dated March 16, 2005, from SPMT requesting EPA to stay and terminate EDS’ exemption from the RCRA land disposal restrictions. SPMT’s challenge in the 6th Circuit, to EPA’s March 15, 2004 RCRA land disposal restriction exemption, is on hold. A status report is due to the 6th Circuit at the end of March.

Contact: Erik Olson, primary contact (312) 886-6829; Maria Gonzalez, additional contact (312) 886-6630

March 28, 2005

Region 5 files a Consent Agreement and Final Order to settle case against Spectro Alloys Corporation, Rosemount, Minnesota. On March 25, 2005, Region 5 filed a Consent Agreement and Final Order (CAFO) resolving an administrative penalty action against Spectro Alloys Corporation (Spectra) 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 Spectro to pay a penalty of $49,058, and perform a supplemental environmental project (SEP) to reduce emissions of particulate matter that involves the installation of hard surfacing to cover a 38,880 square foot area of limestone roadways at its facility. The SEP will cost Spectra an estimated $150,000. On September 29, 2004, Region 5 issued an Administrative Complaint for the alleged violations of eleven different requirements of Subpart RRR, including exceeding the emission limits for dioxin/furan emissions from scrap dryers and HCl emissions from furnaces. In the complaint, Region 5 sought a penalty of $247,578. During the settlement negotiations in this matter, Spectro voluntarily disclosed an additional monitoring/recording violation. Spectro has demonstrated that it currently is in compliance with the requirements of Subpart RRR. As a result of Spectro’s cooperation, good faith efforts to comply, and willingness to perform the SEP, Region 5 determined that it was appropriate and consistent with the penalty policy to mitigate its proposed penalty of $247,578 to a settlement penalty of $49,058 ($5,000 of which relates to the voluntarily disclosed violation) and performance of the SEP.

Contact: Mony Chabria, (312) 886-6842

United States Settles with Gorman Park Properties and Bashir Moghul Under the Residential Lead-Based Paint Hazard Reduction Act.  On March 30, 2005, the Department of Justice (DOJ), on behalf of EPA and the United States Department of Housing and Urban Development (HUD), simultaneously filed complaints and lodged consent decrees with two Minneapolis, Minnesota landlords, Gorman Park Properties and Bashir Moghul, for failing to comply with the notification requirements of the Residential Lead-Based Paint Hazard Reduction Act and the Disclosure Rule requirements at 40 C.F.R Part 745, Subpart F. Bashir Moghul also initially failed to comply with EPA’s subpoena issued under the Toxic Substances Control Act (TSCA), 15 U.S.C. §§ 2601-2692. Combined, these settlements will result in the elimination of all lead-based paint hazards in 250 apartments in Minneapolis, Minnesota; Wisconsin; and Indianapolis, Indiana.

Gorman Park Properties has completed lead-based paint inspections and risk assessments and will undertake a five-year program to eliminate lead-based paint hazards in 208 units, initially targeting the units where young children live. Gorman Park Properties will also pay a penalty of $7,500, and perform a supplemental environmental project (SEP) at a cost of $50,000 to purchase a mobile blood testing van through the Sustainable Resources Center (SRC). This mobile unit is the first of its kind in the Minneapolis-St. Paul area, and it allows SRC to reach neighborhoods where lead screening rates are low to improve blood screenings of at-risk children.

Bashir Moghul owns approximately 24 units in Minneapolis, 4 units in Wisconsin, and 14 units in Indianapolis. Several children residing in Moghul’s properties have been lead-poisoned. Moghul is required to perform risk assessments and replace all windows in his units within one year. He will completely eliminate all lead-based paint hazards within four and a half years, and will pay a penalty of $5,000.

Contact: Mary McAuliffe, Office of Regional Counsel, 312-886-6237