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Enforcement Action Summary FY 2007 - September 2007
Week of September 03, 2007
Region 5 signs Consent Agreements and Final Orders with Investors Management Services Corp. and Leroy W. Vaughn, resolving Lead-Based Paint violations
On August 28 and 30, 2007, Respondents Investors Management Services Corp. and Leroy W. Vaughn entered into pre-filing settlement agreements resolving violations of the Lead-Based Paint Hazard Reduction Act for failing to comply with the requirements in 40 C.F.R. Part 745, Subpart F, in the leasing of target housing in Detroit, Michigan. Under the terms of the two settlements, Respondents will pay a total civil penalty of $3,200, and perform a supplemental environmental project (SEP) in Detroit to abate and/or mitigate lead-based paint hazards in residential housing where one or more children reside. The abatement/mitigation will be performed in partnership with the Greater Detroit Area Health Council, CLEARCorpsDetroit, a not for profit organization, at a total cost of $32,400.
Contacts: Mary McAuliffe, Office of Regional Counsel, (312) 886-6237, and Estrella Calvo, Pesticides and Toxics Compliance Section, (312) 353-8931
Owner of Former Metal Finishing Company Indicted on Environmental and Labor Embezzlement Charges
On August 21, 2007, the owner of a former metal finishing business was arrested on federal environmental and labor charges. The defendant, David Jacobs, was the president and owner of the former Northwestern Plating Works, Inc. (NPW), located at 3114 South Kolin Avenue, Chicago, Illinois. NPW used cyanides, acid, corrosives, brass, copper, zinc and nickel in its electroplating business. The defendant was charged in an indictment returned by a federal grand jury on August 16, 2007, with one count of improperly storing and handling hazardous wastes under the Resource Conservation and Recovery Act. He was also charged with one count of embezzling more than $830,000 from an employee pension plan. The indictment is an allegation only, and the defendant is presumed innocent of these charges unless proven guilty at trial.
Contact: David Mucha (312) 886-9032
Week of September 10, 2007
Tipton, Indiana Business Convicted and Sentenced for Environmental Crimes
On September 6, 2007, Midwest Sheets Company (MWS) of Tipton, Indiana pleaded guilty and was sentenced for three criminal violations of the Clean Water Act (CWA) in United States District Court, Southern District of Indiana. MWS owned an operated a corrugated cardboard sheet manufacturing facility that negligently discharged approximately 1,497 gallons of a caustic soda solution to the City of Tipton publicly owned treatment plant (POTW) as the result of overfilling a storage tank, as well as discharging 320 gallons of more caustic solution following the overflow event. MWS failed to immediately notify the POTW about these discharges in violation of the City of Tipton local ordinance. These discharges caused interference in the POTW operations, resulting in the pass through of pollutants to Cicero Creek and resulting in the demise of approximately 2,000 fish. MWS cooperated with the criminal investigation, paid full restitution for the damages caused by the discharges, and pleaded guilty to three negligence violations under the CWA. MWS was sentenced to: 1) pay a criminal fine of $600,000 ($150,000 suspended during a one-year probation period); 2) implement an employee training program for environmental compliance; 3) implement a corporate environmental compliance program; 4) conduct an environmental audit; 5) comply with all environmental laws; and 6) make a public apology in the local Tipton, Indiana newspaper as well as a trade journal.
Contact: David Mucha (312) 886-9032
Final Order Ratifying Terms of a Consent Agreement with HA International LLC
On September 14, 2007, a Final Order ratifying the terms of a Consent Agreement and Final Order was signed. The Final Order directs the Respondent to pay a civil penalty in the amount of Eighteen Thousand And Seven Hundred And Sixty-Three ($18,763.00) dollars. The Region’s initial demand was Thirty Two Thousand And Two Hundred and Seventy-Two ($32,272) dollars.
Section 313 of the Emergency Planning and Community Right To Know Act (EPCRA) requires certain facilities to file Toxics Release Inventory (TRI) forms. HA International LLC operates a facility in Oregon, Illinois, and failed to file timely a Form R for calendar years 2002, 2003 and 2004 to document and report its emissions of ammonia. The Respondent exceeded the 60 days requirement for curing the violations but did not secure an economic benefit from its non-compliance.
The Region initially calculated a penalty in the amount of $64,544. Consistent with the applicable guidance policies, the Region proposed initially a penalty in the amount of $32,272, a 50% reduction. In the course of negotiations, the Region reduced the penalty an additional 20% in consideration of “other factors as justice may require.” Respondent has agreed to pay a civil penalty in the amount of $18,763. Contact: Steven P. Kaiser, ORC, (312) 353-3804
Week of September 17, 2007
Illinois Attorney General Files Petitions for Review of U.S. EPA’s Orders Denying Petitions to Object to Clean Air Act Operating Permits
On November 25, 2005 and April 5, 2006, U.S. EPA received petitions from the Illinois Attorney General (IAG) requesting that the Administrator object to Clean Air Act Title V operating permits which the Illinois Environmental Protection Agency (IEPA) proposed to issue to various Midwest Generation coal-fired utilities. The IAG alleged that, because the proposed permits did not include schedules to bring the facilities into compliance with opacity emissions limits, and IEPA did not obtain in the permit applications sufficient information to determine whether the sources were subject to new source review, the proposed permits did not comply with the Clean Air Act and 40 C.F.R. part 70. On June 14 and 20, 2007, the Administrator signed orders denying the petitions. In Petitions for Review filed September 14, 2007, the IAG requested that the United States Court of Appeals for the Seventh Circuit review U.S. EPA’s orders.
Contacts: Jane Woolums, ORC, (312)886-6720; Genevieve Damico, Air and Radiation Division, (312) 353-4761
Region 5 files Consent Agreement and Final Order with Alsco Inc.
On September 19, 2007, Region 5 filed a Consent Agreement and Final Order (CAFO) simultaneously instituting and settling an action against Alsco Inc., which owned or operated an industrial laundry and linen supply facility located at 2221 West Oakdale Avenue, Chicago, Illinois 60618, for alleged violations of Section 3005(a) of the Resource Conservation and Recovery Act of 1976 (RCRA), as amended, 42 U.S.C. § 6925(a). Alsco Inc. is a large quantity generator of hazardous waste who allegedly failed to meet certain conditions for an exemption from obtaining a permit for the storage of hazardous waste. Alsco Inc. allegedly failed to: meet hazardous waste training requirements for its employees; have a contingency plan; familiarize local officials and hospitals with the hazardous waste generation at the facility; meet hazardous waste recordkeeping and data management requirements; minimize the possibility of hazardous waste releases; maintain proper spill control and decontamination equipment; label hazardous waste storage containers with the date of accumulation or with the words “Hazardous Waste”; properly manage such storage containers or to keep them closed; maintain proper aisle space in storage areas; and inspect storage areas weekly or to maintain an inspection log. By violating its duty to obtain a permit, Alsco Inc. became subject to civil penalties under Section 3008(a) of RCRA, 42 U.S.C. § 6928(a).
Region 5 calculated a proposed penalty of $311,764. The parties agreed to settle this matter prior to the filing of a complaint or answer. Under this CAFO, Alsco Inc. agrees to pay $280,587 in civil penalties. This amount represents a substantial sanction against Alsco Inc., and will deter future violations.
Primary Contact: Kevin Chow, ORC, (312) 353-6181; Additional Contact: Brad Grams, Land & Chemicals Division, (312) 886-7747
Technician at oil refinery sentenced for making false statements in monitoring reports; United States v. David L. Pacholski
On September 17, 2007, David L. Pacholski was sentenced for making false statements in connection with his employment at the BP refinery in Oregon, Ohio. Mr. Pacholski was sentenced to one year of probation. In addition, Mr. Pacholski was ordered to pay a $500 fine. Pursuant to the Clean Air Act, BP is required to check its refinery in Oregon, Ohio for vapor leaks. Vapor leaks can occur in valves, pumps, compressors and other piping connections. Failure to find these leaks may cause the emission of volatile organic chemicals and other hazardous substances. Pacholski worked at the BP refinery in Oregon, Ohio and was employed to check components at the refinery for leaks. As part of checking for leaks Pacholski would also file his monitoring data and sign a certification that the monitoring was conducted properly. The information charged that between June 18, 2003, and June 20, 2003, Pacholski submitted false monitoring data and certifications. The monitoring data and certifications were false because Pacholski did not check the refinery for leaks on those days.
This case was investigated, in a joint investigation, by the Ohio Bureau of Criminal Identification and Investigation, the Ohio Environmental Protection Agency, and the U.S. EPA CID, all members of the Northwest Ohio Environmental Crimes Task Force.
Contact: Brad Beeson, ORC, (440) 250-1761
Business Owner sentenced for spilling oil onto a tributary of the Great Miami River; United States v. George L. Flory.
On September 14, 2007, George L. Flory was sentenced for spilling oil onto a tributary of the Great Miami River. Mr. Flory was sentenced to three years of probation, of which the first six months must be served as home confinement. During the term of probation Mr. Flory is required to perform 100 hours of community service. In addition, Mr. Flory was ordered to pay $260,948 in restitution. The restitution will be paid to the Coast Guard and the United States Environmental Protection Agency, the agencies who performed the clean up at the facility operated by Mr. Flory.
Mr. Flory was the owner and operator of Personal Touch Environmental (PTE), a company which specialized in the recycling of waste oil collected from Dayton area residences and facilities. Mr. Flory stored the waste oil in drums and storage tanks at the PTE facility which is bordered by an unnamed tributary of the Great Miami River. On February 16, 2004, there were approximately 700 drums and storage tanks at the PTE facility, many of which were leaking oil directly into the tributary bordering the facility. The information charged that on numerous days beginning on or about April 16, 2002 and continuing to on or about February 12, 2004, Mr. Flory knowing caused waste oil stored at the PTE facility to be discharged into and upon an unnamed tributary of the Great Miami River.
This case was investigated, in a joint investigation, by the Ohio Bureau of Criminal Identification and Investigation, the Ohio Environmental Protection Agency, the Coast Guard, and the U.S. EPA CID, all members of the Southwest Ohio Environmental Crimes Task Force.
Contact: Brad Beeson , ORC, (440) 250-1761
Real Estate Company President sentenced for Conspiracy and Obstruction of Justice; United States v. Scot F. Ulmer
On September 17, 2007, Scot F. Ulmer was sentenced for conspiracy and obstruction of justice related to a U.S. Environmental Protection Agency (U.S. EPA) investigation into his company, the Westhaven Group LLC (Westhaven). Mr. Ulmer was sentenced to five years of probation, the first 10 months of which must be served in a halfway house. In addition, Mr. Ulmer was ordered to pay a fine of $20,000. Mr. Ulmer was the President of the Westhaven, a real estate investment company located in Toledo, Ohio. Westhaven bought, sold, and rented residential properties primarily in the greater-Toledo area. Sellers of pre-1978 dwellings are required to disclose known lead-based paint hazards, or, in the alternative, to certify that they have no knowledge of such hazards. This disclosure is often referred to as a “Lead Disclosure Form.”
In January 2004, U. S. EPA sent Westhaven an information request concerning Westhaven's compliance with the Lead Disclosure Rule. The information request specifically asked Westhaven to produce copies of all Lead Disclosure Forms. In late April 2005, the U.S. EPA received Westhaven’s response to the information request, including copies of signed Lead Disclosure Forms.
The information charged that between January 23, 2004, and April 29, 2005, Ulmer directed the creation of forged and backdated Lead Disclosure forms. The information further charged that Ulmer directed the submission of false forms to the U.S. EPA.
This case was investigated, in a joint investigation, by the Ohio Bureau of Criminal Identification and Investigation, the Ohio Environmental Protection Agency, and the U.S. EPA CID, all members of the Northwest Ohio Environmental Crimes Task Force.
Contact: Brad Beeson, ORC, (440) 250-1761
EPA enters Consent Agreement and Final Order and Administrative Order on Consent with Tate & Lyle Ingredients Americas, Inc., resolving violations of the Clean Air Act
On September 13, 2007, the Regional Administrator signed a Final Order resolving Clean Air Act (CAA) violations by Tate & Lyle Ingredients Americas, Inc. (Tate & Lyle) at its plant located in Lafayette, Indiana (the South Plant). Specifically, Tate & Lyle installed a gluten dryer at the South Plant without obtaining a proper permit or installing best available control technology for carbon monoxide as required by the Prevention of Significant Deterioration requirements of the Act. Under the Consent Agreement and Final Order (CAFO), Tate & Lyle will pay a civil penalty of $188,100. Under a separate Administrative Consent Order, Tate & Lyle has agreed to apply for proper permits at the South Plant that will include best available control technology emission limits for volatile organic compounds and carbon monoxide for all of its dryers at the South Plant.
Contact: Cynthia A. King, ORC, (312) 886-6831; secondary contact: Erik Hardin, (312) 886-2043.
Degussa Engineered Carbons, LP Completes SEP Pursuant to Consent Agreement and Final Order resolving violations of the Clean Air Act
On September 5, 2007, Region 5 formally accepted the SEP completion report filed by Degussa Engineered Carbons. The SEP complies with the terms of the January 18, 2006, CAFO. The SEP resulted in the replacement of 47 wood stoves with EPA certified high efficiency stoves in homes of low income individuals in Washington County, Ohio and Wood County, West Virginia. In addition, chimneys and flues were repaired or replaced as necessary. The wood stove changeouts are expected to reduce emissions of various air pollutants in these non-attainment areas by over 16 tons.
Contacts: John Tielsch, ORC, (312) 353-7447; Brian Dickens, Air Division, (312) 886-6073.
Region 5 signs a Consent Agreement and Final Order with Mosaic USA, LLC resolving violations of Underground Injection Control (UIC) requirements.
On September 10, 2007, the Regional Administrator signed a Final Order resolving alleged violations of its UIC permit by Mosaic USA, LLC, d/b/a/ Mosaic Potash Hersey. The CAFO was filed with the Regional Hearing Clerk on September 17, 2007. Mosaic failed to demonstrate Part II mechanical integrity for 19 of its underground injection wells at its potash mining facility in Hersey, Michigan. The complaint proposed the statutory maximum administrative penalty of $157,500. Based on Mosaic’s immediate cooperation in remedying these violations, the lack of potential contamination of underground sources of drinking water due to the violations, and other factors consistent with the Safe Drinking Water Act and the Interim Final UIC Program Judicial and Administrative Order Settlement Penalty Policy, the Region agreed to mitigate the penalty to $50,000. Mosaic has returned to compliance with its permit and the UIC regulations.
Primary contact: John Tielsch, ORC, (312) 353-7447; Other contact: William Bates, UIC Program (312) 886-6110
Week of September 24, 2007
Stormwater Finding of Violation Issued to the Village of Lake Zurich, IL
On September 10, 2007, Region 5 issued a Finding of Violation and Order for Compliance to the Village of Lake Zurich, IL for violations of its Municipal Separate Storm Sewer (MS4) permit. Pursuant to 33 U.S.C. §§1318 and 1319(a), Region 5 ordered the Village to address total suspended solids violations from a stormwater outfall to the southeastern end of Lake Zurich.
Road construction in the Village is contributing excessive sediment loads to the sewer system. The Village maintains a retention pond that requires regular maintenance to trap sediments in the stormwater. The Order requires the Village to maintain this pond and sewer lines in order to properly intercept the sediments entering the system. The Region has also issued a compliance order to the Illinois Department of Transportation to use best management practices at their road construction site.
Contact: Richard Nagle, ORC, 312-353-8222
Consent Decree Entered Requiring Reimbursement of Response Costs at the Johns Manville, Site 2 (Former Shooting Range) Site
On September 17, 2007, the United States District Court for the Northern District of Illinois entered a CERCLA 107 consent decree resolving the liability of four parties and the Department of Defense at the Johns Manville, Site 2 ( Former Shooting Range) site. The consent decree requires the four settling defendants, Johns Manville, the City of Waukegan, Commonwealth Edison (formerly Public Service Company of Northern Illinois), and Midwest Generation to reimburse $3,014,000 of costs incurred for the site, and requires the Department of Defense to reimburse $741,000, for a total recovery of $3,755,000. Through this settlement, the United States is recovering approximately 83 percent of the $4,523,000 in costs incurred for the site. The Johns Manville, Site 2, was constructed in approximately 1958 as a shooting range for the 1959 PanAm Games and waste asbestos containing material (ACM) was used to construct the shooting range berms. In 1998, Illinois notified U.S. EPA of ACM at the site. The parties were unable to reach an agreement for a voluntary cleanup and U.S. EPA conducted a removal action, which was completed on October 2, 2002.
Contact: Stuart P. Hersh, ORC, 312-886-6235.
Region 5 signs Consent Agreement and Final Order and Administrative Consent Order resolving CAA violations with Steel Dynamics, Inc., Butler, Indiana.
On September 21, 2007, Region 5 signed a Consent Agreement and Final Order (CAFO) and an Administrative Consent Order (ACO) with Steel Dynamics, Inc. (SDI), in settlement of a Notice and Finding of Violation (NOV) issued to SDI on September 28, 2006. The NOV alleged that SDI violated the Standards of Performance for Steel Pants: Electric Arc Furnaces and Argon-Oxygen Decarburization Vessels Constructed After August 17, 1983, at C.F.R. Part 60, Subpart AAa at its Butler, Indiana facility (facility). Specifically, the NOV alleged that between 2003 and 2006, SDI’s emissions from its Butler, Indiana facility equaled or exceeded 3%, in violation of 40 C.F.R. § 60.272a(a)(2) and Section 111(e) of the Clean Air Act (Act) and 326 IAC 2-3-3(1); that Respondent failed to properly report these exceedances in violation of 40 C.F.R. § 60.276a(b) and Section 111(e) of the Act; and that Respondent failed to use good pollution control practice for minimizing emissions, in violation of 40 C.F.R. § 60.11(d). The ACO sets forth specific measures to bring SDI into compliance. The CAFO, which simultaneously initiates and concludes this matter, includes a provision for SDI to perform a SEP worth over $133,000. The SEP involves the installation of a compartment leak detection system as an additional control to the COM on its baghouse. In addition, SDI will pay a civil penalty of $13,540.
Contact: Susan Tennenbaum, ORC, 312-886-0273; Joseph Ulfig, ARD, 312-353-8205
EPA Region 5 Signs a Consent Agreement and Final Order with Water Saver Faucet Co. in Chicago, Illinois.
On September 25, 2007, EPA, Region 5, and Water Saver Faucet Co. (Water Saver) entered into a Consent Agreement and Final Order simultaneously commencing and concluding an action for violations of the Section 313 of the Emergency Planning and Community Right-to-Know Act at Water Saver’s manufacturing plant in Chicago, Illinois. The CAFO alleges that Water Saver failed to submit timely Form R reports for copper and lead for calendar year 2004. The Form R reports were due on July 1, 2005. Water Saver submitted the forms on July 15, 2005. EPA calculated a preliminary civil penalty of $21,928 for these violations and notified Water Saver of this amount in a pre-filing and opportunity to confer letter. In consideration of the facts of this case, Water Saver’s cooperation with U.S. EPA and good faith efforts to comply, EPA determined and Water Saver agreed that the appropriate civil penalty to settle this action is $15,350. To further mitigate the penalty, Water Saver developed a SEP proposal which the Region did not accept because it is a profitable project. The project involves extraction of metals, primarily copper and nickel, from the solid waste generated by Water Saver. This eliminates the need for disposal of hazardous waste. Water Saver informed EPA that it will implement the project even though it is not acceptable as a SEP. Once implemented, the project will totally eliminate the hazardous waste generated by Water Saver, i.e., approximately 18 gross tons of F006 plating waste per year.
Contact: Christine Liszewski, primary contact, 312-886-4670; Tony Silvasi, additional contact, 312-886-6878
Region 5 Files a Consent Agreement and Final Order Commencing and Concluding A Proceeding with Target Corporation
Region 5 initiated prefiling discussions on this matter in July, 2007. The proposed penalty was $45,500. On September 20, 2007, Region 5 filed a Consent Agreement and Final Order Commencing and Concluding a Proceeding with the Respondent to settle violations of Section 12(a)(1)(A) of FIFRA, 7 U.S.C. § 136j(a)(1)(A). Specifically, the Respondent distributed or sold the following unregistered pesticides: Antimicrobial Toilet Seat, Home Ultimate Full Mattress Pad, Home Ultimate Twin Mattress Pad, Home Ultimate King Mattress Pad, Home Ultimate Pillow, and Cleaner with Bleach. During settlement discussions, the Respondent agreed to pay a civil penalty of $40,950.
Contact: Nidhi O'Meara, primary contact 312-886-0568; Terence Bonace, additional contact 312-886-3387.
Region 5 Files a Consent Agreement and Final Order Commencing and Concluding A Proceeding with SLI Corporation a.k.a. PMO, Inc.
Region 5 initiated prefiling discussions on this matter in March, 2007. The proposed penalty was $18,058. On September 20, 2007, Region 5 filed a Consent Agreement and Final Order Commencing and Concluding a Proceeding with the Respondent to settle violations of Section 12(a)(1)(A)of FIFRA, 7 U.S.C. § 136j(a)(1)(A). Specifically, the Respondent distributed or sold five different unregistered pesticides. During settlement discussions, the Respondent agreed to pay a civil penalty of $8,000. The penalty was mitigated to this amount because Respondent demonstrated an inability to pay a higher penalty.
Contact: Nidhi O'Meara, primary contact 312-886-0568; Terence Bonace, additional contact 312-886-6322.
Region 5 Files a Consent Agreement and Final Order Commencing and Concluding A Proceeding with The Valspar Corporation
Region 5 initiated prefiling discussions on this matter in March, 2007. The proposed penalty was $40,500. On September 11, 2007, Region 5 filed a Consent Agreement and Final Order commencing and concluding a proceeding with the Respondent to settle violations of Section 12(a)(1)(A)of FIFRA, 7 U.S.C. § 136j(a)(1)(A). Specifically, the Respondent distributed or sold an unregistered pesticide on eight separate occasions. During settlement discussions, the Respondent agreed to pay a civil penalty of $32,400.
Contact: Nidhi O'Meara, primary contact 312-886-0568; Joseph Lukascyk, additional contact 312-886-6322
Region 5’s Superfund Division Director signs the Record of Decision (ROD) for the Final Operable Unit (OU) at the Allied-Ironton Superfund Site in Ironton, Ohio
On September 19, 2007, the Director of the Superfund Division, Region 5, signed the ROD for the cleanup of the former tar plant at the Allied Chemical/Ironton Coke Superfund site in Ironton, Ohio. The tar plant cleanup is the third operable unit at this site. Previously, the Goldcamp Disposal Area (OU1) and the Coke Plant and Lagoon Area (OU2) were cleaned up by the PRP, AlliedSignal, now Honeywell, under separate RODs through Administrative Orders on Consent. This third and final ROD addresses soil, soil vapor, and Ohio River sediment contaminated by the former tar plant. The plan includes covering contaminated soil with a cap that meets the design requirements of Ohio solid waste regulations, legal and administrative institutional controls to ensure the cap remains intact and protects people from the remaining contaminated soil and vapor, and a combination of dredging, off-site disposal and capping of contaminated sediment in the Ohio River adjacent to the tar plant loading dock. Site-wide groundwater contamination is being addressed through the OU2 ROD. The estimated cost of this remedy is $10,175,000. EPA expects to negotiate a consent decree or administrative order with Honeywell to perform the Remedial Design and Remedial Action for this third OU.
Contacts: John Tielsch, ORC, 312-353-7447; Syed Quadri, RPM, 312-886-5736.
Region 5 files a Consent Agreement and Final Order to commence and conclude case against STRIB Industries, Inc. (d/b/a Products Chemical Company), Cleveland, Ohio.
On September 21, 2007, Region 5 filed a Consent Agreement and Final Order (CAFO) commencing and resolving simultaneously an administrative penalty action against STRIB Industries, Inc., doing business as Products Chemical Company, for violations of the National VOC Emissions Standards for Architectural Coatings, 40 CFR Part 59, Subpart D. The CAFO requires Products Chemical Company to pay a penalty of $33,911 in three installments with interest. On December 20, 2006, Region 5 issued a Finding of Violation to Products Chemical for allegedly failing to timely submit an initial notification report and exceeding the VOC content limits for certain architectural coatings from 1999 through 2005. On May 16, 2006, Products Chemical submitted an initial notification report. On February 28, 2007, Products Chemical submitted past due exceedance fee and tonnage exemption reports along with past due exceedance fees. These efforts remedied the violations. Also, Products Chemical has reformulated many of its products so that they are now below the VOC content limits. As a result of Products Chemical’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 $59,345 to a settlement penalty of $33,911. The settlement payment will be made in installments due to an evaluation of Products Chemical’s ability to pay.
Contact: Mony Chabria, 312-886-6842.
Region 5 files a Consent Agreement and Final Order to commence and conclude case against Spectro Alloys Corporation, Rosemount, Minnesota.
On September 21, 2007, Region 5 filed a Consent Agreement and Final Order (CAFO) commencing and resolving simultaneously an administrative penalty action against Spectro Alloys Corporation, for violations of the National Emission Standards for Hazardous Air Pollutants (NESHAP) for Secondary Aluminum Production, 40 CFR Part 63, Subpart RRR. The CAFO requires Spectro Alloys to pay a penalty of $70,923. On February 9, 2007, Region 5 issued a Finding of Violation to Spectro Alloys for allegedly exceeding the emission rate limit for dioxin/furans and failing to maintain annual afterburner inspection records for 2003, 2004, 2005, 2006. Spectro Alloys subsequent retesting of the group 1 furnace demonstrated compliance with the dioxin/furan emission limits. Spectro contends it had a regular practice of conducting the afterburner inspections and is committed to maintaining the records on a going forward basis. Recognizing some litigation risk, Spectro Alloys’ cooperation, 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 $96,713 to a settlement penalty of $70,923.
Contact: Mony Chabria, 312-886-6842
Region 5 Settles RCRA Transporter Case with EMCO Chemical Distributors, Inc. of North Chicago, IL.
On September 27, 2007, Region 5 filed a Consent Agreement and Final Order settling an administrative Complaint and Compliance Order that was issued to EMCO Chemical Distributors on March 21, 2007. The Complaint alleged that EMCO Chemical, a transporter of hazardous waste: (1) stored 20 shipments of hazardous waste at its North Chicago facility beyond the ten days permitted by the RCRA regulations; (2) improperly accepted the return of a shipment of hazardous waste after the disposal facility rejected the shipment; and (3) failed to label ten drums of hazardous waste with the accumulation start date or the words “Hazardous Waste.” EPA was seeking a civil penalty of $328,705 for these violations. The compliance order addressed concerns that there may have been spills or other releases in the areas where the drums of hazardous waste were stored for more than ten days.
EMCO agreed, as a supplemental environmental project, to replace their underground piping system which connects the chemical loading/unloading area to the 80 tanks in their tank farm, with an aboveground piping system. This aboveground piping system will cost at least $200,000 to design and install. EMCO has also agreed to pay a civil penalty of $52,000, and will retain a consultant to sample, analyze and cleanup, if necessary, the area where the hazardous waste was stored for more then ten days.
Contacts: Terry Stanuch, 312-886-8044, legal contact; and Judith Kriz, 312-353-6057, technical contact
Region 5 signs Consent Agreement and Final Order with Thomas Battison.
On September 24, 2007, Region 5 signed a consent agreement and final order with Thomas Battison of Girard, Ohio, commencing and resolving an administrative penalty action for alleged violations of Section 1018 of Title X, the Residential Lead-Based Paint Hazard Reduction Act of 1992, 42 U.S.C. § 4852d. Rules enacted by U.S. EPA under the Act require, among other things, landlords and sellers of certain residential properties to disclose any knowledge, or the lack thereof, about the presence of lead based paint at the properties. Mr. Battison owns a number of residential rental properties in and around Youngstown, Ohio. Region 5 initiated this enforcement action due to Mr. Battison’s alleged failure to comply with lead paint disclosure requirements in several lease transactions, including a lease where children lived in the unit. Mr. Battison will pay a cash penalty of $1,264 and perform a window replacement project costing at least $11,371 at one of his properties to settle the violations.
Contact: Erik Olson, ORC, (312) 886-6829; primary technical contact, Estrella Calvo, (312) 353-8931
U.S. EPA Region 5 enters Consent Agreement and Final Order with EBW Electronics, Inc., Including a Supplemental Environmental Project to Abate Lead-Based Paint Hazards in Holland, Michigan.
On September 24, 2007, the Region 5 Regional Administrator signed a Final Order concluding an administrative action against EBW Electronics, Inc., under Section 325(c) of EPCRA. The Consent Agreement alleged that during calendar year 2004, EBW Electronics processed 1,400 pounds of lead, and violated Section 313 of EPCRA by failing to timely submit a Form R. A civil penalty of $15,345 was calculated, which includes a 30% reduction for cooperation and compliance. EBW Electronics will pay $3,836 to settle this action. In addition to the penalty, EBW Electronics will fund a SEP project valued at $11,509, that will be monitored by the Michigan Department of Community Health, Lead and Healthy Homes Section (Michigan DCH), and conducted by a qualified lead abatement contractor, to abate and/or mitigate lead-based paint hazards in three residential housing units located in Holland, Michigan.
Contacts: Craig Melodia, (312) 353-8870, and Tom Crosetto (312) 886-6294
Region 5 Executes CAFO with Bonnie Owen Realty, Inc., of Carbondale, Illinois, Resolving TSCA Lead-Based Paint Disclosure Rule Violations.
On September 25, 2007, the Region filed a Consent Agreement and Final Order resolving the liability of Bonnie Owen Realty, Inc., for 7 violations of section 1018 of the Residential Lead-Based Paint Hazard Reduction Act, 42 U.S.C. § 4852d, and section 409 of TSCA, 15 U.S.C § 2689, for failure to make disclosures regarding lead-based paint as required by regulations under those statutes. Given the residence of a child with elevated blood lead levels in the target housing, the Agency initially calculated a penalty of $38,080 for those 7 violations. Taking account of Respondent’s cooperation in resolving the matter, its subsequent analysis that the target housing was indeed free of lead-based paint and its expenditure of in excess of $6,000 to replace 16 windows at two additional properties in Carbondale, the CAFO requires Respondent to pay civil penalty of $533.
Contact: Robert Guenther, primary contact ORC, (312) 886-0566; Joana Bezerra, alternate technical contact (312) 886-6004
Region 5 signs a pre-filing Consent Agreement and Final Order with Greif Industrial Packaging & Services, LLC and Greif, Inc. (Greif), Alsip, Illinois, resolving Clean Air Act violations
On September 28, 2007, U.S. EPA Region 5 filed a Consent Agreement and Final Order (CAFO) with the Regional Hearing Clerk that simultaneously commencing and concluding, under Section 113 of the Clean Air Act, 42 U.S.C. § 7413, alleged violations of the regulations at 40 C.F.R. Part 63, Subpart Q, related to the use of chromium-based chemicals in two industrial process cooling towers constructed prior to 1994, at Greif’s plant in Alsip, Illinois. The chromium-based water treatment chemicals were used as corrosion inhibitors in the cooling towers. Greif stopped using the chromium-based water treatment chemicals shortly after U.S. EPA inspected the plant. Under the terms of the CAFO, Greif has agreed to pay $120,000 as a penalty.
Contacts: Kathryn Siegel, Air Enforcement and Compliance Assurance Branch, (312) 353-1377, and Mary McAuliffe, ORC, (312) 886-6237
McClain Properties enters CAFO settling violations of Lead Disclosure Rule under TSCA § 16(a) and Section 1018 of the Residential Lead-Based Paint Hazard Reduction Act.
On September 27, 2007, McClain Properties entered a consent agreement and final order settling alleged violations of the Lead Disclosure Rule at 40 C.F.R. Part 745. The alleged violations concern the Respondent’s failure to comply with the requirements of providing lessees, before they become obligated on a lease, a lead warning statement, an accurate lead disclosure statement, a list of any records or reports available to the lessor and an acknowledgement by lessor and lessee concerning the foregoing matters. Respondent agreed to perform a lead paint abatement project and thus obtained a 90% reduction in the proposed penalty under EPA’s 2004 Policy “SEPs in Administrative Enforcement Matters Involving Section 1018 Lead-based Paint Cases.” The reduced penalty amount is $1,263.00.
Contact: Gaylene Vasaturo, ORC, (312) 886-1811
Region 5 files a Consent Agreement and Final Order to conclude case against Warsaw Chemical Company, Inc., Warsaw, Indiana.
On September 28, 2007, Region 5 filed a Consent Agreement and Final Order (CAFO) commencing and resolving simultaneously an administrative penalty action against Warsaw Chemical Company, Inc. (Warsaw) for allegedly violating Section 3005 of the Solid Waste Disposal Act . On June 8, 2006, Region 5 conducted an investigation at Warsaw’s 390 Argonne Road, Warsaw, Indiana facility. EPA determined that Warsaw had failed to comply with certain hazardous waste permit exemption conditions for generators. Region 5 had initially proposed a penalty of $69,260 but determined that it was appropriate and consistent with the penalty policy to adjust the penalty to $60,934 based on Warsaw’s cooperation, good faith, and other factors as justice may require. During negotiations, Warsaw submitted financial information to Region 5, indicating that it had recently been encountering financial difficulties. While the information was not conclusive, in the interest of resolving the matter, Region 5 agreed to allow Warsaw to pay the $60,934 penalty in installments over a term of 36 months plus interest.
Contact: Randa Bishlawi, (312) 886-0510
CERCLA Kohler Landfill, WI Five Year Review.
On September 20, 2007, EPA Region 5 signed a Five-Year Review Report for the Kohler Company Landfill Site located in Kohler, Wisconsin. The Five Year Review determined that the landfill cap and the groundwater pump and treat systems were constructed and functioning as intended. The Five Year Review Report determined that the rate at which the landfill was being brought to final grade would allow the landfill to remain open until 2011, under a State permit. At that time, the remaining 20% of the landfill cap will be installed. Given the private ownership of the landfill and the surrounding land, an IC study will be done for the site. The study will evaluate the surrounding land use and existing groundwater use restrictions to determine if institutional controls will be necessary. The IC study should be completed in the next 6 months.
Contact: Richard Nagle, ORC, (312) 353-8222
Judge Grants U.S. Summary Judgment Motion for Costs in Cost Recovery Case
On 9/20/07, Judge Rice of the Southern District of Ohio in U.S. v. A-L Processors et al., granted the United States' motion for summary judgment for costs at the United Scrap Lead site, finding that the U.S. is entitled to collect over $5.3 million from the defendants remaining in the lawsuit. The judge had previously found that most of these defendants were jointly and severally liable to the United States. In its summary judgment filing, the United States did not seek the costs of the original, experimental 1988 ROD remedy, which was later abandoned, so there are additional costs which could be sought at trial, unless the defendants' available assets would be exhausted by the judgment. Judge Rice did not grant the United States’ claim for pre-judgment interest, holding that the demand letters were not properly authenticated. This portion of our claim was worth almost $2.5 million. This portion of our claim will be subject to subsequent briefing, and the enforcement team is optimistic about its chances for success here. Efforts are now underway to reach ability-to-pay settlements with the defendants against whom judgment was rendered, to ease collection efforts.
Contact: Sherry Estes, ORC, (312) 886-7164
RCRA Complaint Filed Against North American EN, Inc.
On September 27, 2007, Region 5 filed an administrative complaint under RCRA against North American EN, Inc. in Elk Grove, Illinois for illegal storage of hazardous waste. A large quantity generator who accumulated waste on-site, North American EN is alleged to have failed in its obligation to have a contingency plan for its facility, and to provide necessary training in emergency procedures to its personnel. Because it failed to comply with the above conditions for exemption from a permit and it had never obtained a permit or interim status, Region 5 alleged that its storage of hazardous waste was illegal. The Respondent North American EN further failed to complete a necessary waste analysis. The complaint seeks a penalty of $55,748 for the violations.
Contact: Sherry Estes, ORC, (312) 886-7164
Wisconsin Electric Power Company Settlement
The consent decree between the United States Environmental Protection Agency and Wisconsin Electric Power Company resolving Clean Air Act New Source Review claims against the company for violating New Source Review regulations was entered on September 30, 2007. The parties filed a Motion to Enter the consent decree on October 24, 2003. Shortly thereafter, the State of Michigan, Clean Wisconsin, Sierra Club, and the Citizens’ Utility Board intervened in the law suit and proposed modifications to the consent decree.
In granting the United States’ Motion to Enter, the judge stated that “there is no dispute that BACT controls would achieve greater reductions [at two plants that did not receive controls under the decree]. Yet requiring BACT at all units would not be a settlement – it would be more akin to a judgment against one party. The court . . . believes that the proposed decree provides a significant reduction in pollutants for the citizens of both states.”
Under the decree, WEPCO will spend $600 million to install four scrubbers and four selective catalytic converters to reduce 72,300 tons per year of SO2 and 32,600 tons per year of NOx, respectively. The settlement covers WEPCO’s entire system, which includes 23 units at five power plants. WEPCO has agreed to pay a civil penalty of $3.1 million and mitigation costs totaling at least $20 million. The $20 million will finance an environmental project demonstrating a new technology, TOXECON, designed to achieve a 90% removal of mercury.
Contact: Sabrina Argentieri, ORC, (312) 353-5485.
Region 5 signs a Consent Agreement and Final Order with the Mercury Displacement Industries, Inc.
Region 5 initiated this enforcement action in January 2007. On September 27, 2007, Region 5 filed a Consent Agreement and Final Order with Mercury Displacement Industries, Inc., in Edwardsburg, Michigan. The Region alleged that Mercury Displacement Industries, Inc. failed to timely submit Form Rs to the Administrator for both lead and mercury for the 2005 calendar year, as required by Section 313 of the Emergency Planning and Community Right-to-Know Act of 1986 (EPCRA), 42 U.S.C. § 11045(c). Mercury Displacement Industries, Inc. agreed to resolve this matter prior to the issuance of an administrative complaint with a payment of a civil penalty amount of $ 1,984.00. The total calculated Category II, Level 4 penalty for the alleged violations was $ 2,834.00; however, this penalty was reduced approximately 30% in accordance with mitigating factors delineated in the Enforcement Response Policy for Section 313 of EPCRA.
Contact: Kenneth Zolnierczyk, primary contact, (312) 353-9687; James Morris, additional contact, (312) 886-6632
Federal District Court enters CERCLA remedial design and remedial action consent decree
On September 27, 2007, United States District Court Judge Barbara Crabb entered the consent decree in United States of America v. Waste Management of Wisconsin, Inc., Civil Action Docket No. 07-C-0424. The Consent Decree was lodged in the United States District Court for the Western District of Wisconsin. Pursuant to the terms of the Consent Decree, the settling defendant will (1) reimburse future costs incurred by EPA and the Department of Justice (“DOJ”), and (2) continue to perform studies and response work that previously was undertaken under the terms of CERCLA Section 106 unilateral administrative orders (“UAOs”). In addition, the Consent Decree will serve as a vehicle to reimburse settling defendant for $1,525,306.84 in response costs that it incurred in connection with the remedial action. The amount that Waste Management of Wisconsin (“Waste”) is receiving reflects the net proceeds from the sale of Uniroyal Technology Corp. stock that Waste is eligible to receive.
As background, in 1993, pursuant to a bankruptcy settlement agreement and stipulated order involving various Uniroyal-related entities, in Case No. 91-32791, U.S. Bankruptcy Court, Northern District of Indiana, the United States received shares of Uniroyal Technology Corp. stock. The bankruptcy settlement agreement and stipulated order required EPA to credit the proceeds of the sale of that stock to various sites for which the Uniroyal entities were allegedly liable, including the Hagen Farm Site, thereby reducing the liability of other parties potentially responsible for those Sites. EPA has determined that $1,525,306.84 is available to reduce the liability of other potentially responsible parties in connection with the Hagen Farm Site as required by the bankruptcy settlement agreement and stipulated order. The proceeds of the stock sale attributable to the Hagen Farm Site, after offset for unrecovered EPA costs for the Site, will be deposited in a special account for the Site. Based on certifications made by Waste concerning unrecovered costs incurred at the site, EPA will disburse, in accordance with the Consent Decree, the special account funds to Waste. Put simply, the Uniroyal settlement stipulated that settlement proceeds be used to "reduce the liability" of the other PRPs, Waste performed all of the RD/RA work at the Hagen site under UAOs and is, therefore, eligible to receive the Uniroyal proceeds net of U.S. EPA's unreimbursed response costs.
Contact: Jeffrey A. Cahn, primary contact 312-886-6670; Shiela Sullivan, additional contact 312-886-5251.