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Enforcement Action Summary FY 2007 - November
Week of November 6, 2006
Region 5 Signs a Consent Decree with Bunge North America, Inc., Bunge North America, L.L.C., Bunge North America (OPD West), Inc., and Bunge Milling, Inc., Resolving Violations of the Clean Air Act
On October 26, 2006, the United States simultaneously filed a Complaint and lodged a Consent Decree with Bunge North America, Inc., Bunge North America (East), L.L.C., Bunge North America (OPD West), Inc., and Bunge Milling, Inc., (collectively, “Bunge”) that resolves violations of the Clean Air Act. Regions 4, 5, 6 and 7 signed the Consent Decree. Each of the eight States ( Louisiana, Indiana, Illinois, Kansas, Ohio, Mississippi, Iowa and Alabama) in which Bunge operates a plant is a signatory to the Consent Decree, and filed their Complaints and Motions-in-Intervention simultaneously. Upon entry, both State and Federal violations related to Bunge’s eleven oilseed processing plants and one corn germ extraction plant will be resolved by the joint Consent Decree.
The resulting settlement addresses volatile organic compounds (VOCs), including the hazardous air pollutant n-hexane, carbon monoxide (CO), oxides of nitrogen (NOX) and sulfur dioxide (SO2), at all twelve of Bunge’s plants in eight states. Eleven of these plants produce products from soybeans, including vegetable oil and meal that is used as animal feed. The other plant produces the same type of products, but from corn germ. Under the settlement, Bunge will implement sweeping environmental improvements at each of its plants that will result in a reduction of more than 1,400 tons of actual air pollution a year, as follows: 525 tons per year (tpy) of VOCs; 350 tpy of SO2; 275 tpy of NOX ; and 255 tpy of CO. The reduction in allowable air pollution is approximately 2,200 tpy. These reductions include a pilot technology at Bunge’s Cairo, Illinois coal boiler to reduce SO2 and NOX emissions. In addition, Bunge’s oilseed extraction plants are taking industry-leading solvent loss ratios for Conventional Oilseed extraction on a schedule that will put them ahead of the oilseed plants addressed in the settlements with Archer Daniels Midland and Cargill, Inc. Finally, Bunge will engage in corrective permitting to ensure that all of its permits are reflective of these new limits. Bunge has estimated that it will spend approximately $14 million in capital expenditures to achieve these emission reductions.
The Consent Decree requires Bunge to pay civil penalties of $625,000, with $361,000 of that amount to be paid as a federal penalty, and the remaining $264,000 to be divided on a per plant basis among the States. This amount will be paid in full within 30 days of entry of the Consent Decree.
In addition, the Consent Decree requires Bunge to expend approximately $1,250,000 to implement a number of State supplemental environmental projects in each of the eight States in which it operates, as follows:
Louisiana: $83,335.00 to the Louisiana Department of Environmental Quality to fund the Mercury Removal/Education Program at LDEQ, spending no less than $15,000.00, in St. Charles Parish. Based on the needs of the schools, the funds will be used to defray the costs of
(a) removing and disposing of present mercury, lead and/or asbestos contamination, and/or,
(b) eliminating the use of mercury instruments in local educational institutions.
Illinois
1. Alexander County Hazardous Materials Equipment and Training SEP: $54,000.00 to the Alexander County Emergency Services and Disaster Agency for hazardous materials response equipment and training2. Vermilion County Hazardous Materials Equipment and Training SEP: $90,000.00 to the Vermilion County Emergency Management Agency for hazardous materials response equipment and training
3. Pulaski County Hazardous Materials Equipment and Training SEP: $62,000.00 to the Pulaski County Emergency Services and Disaster Agency for hazardous materials response equipment and training
4. Lead Abatement SEP: $294,000.00 to the City of Danville, Illinois, Department of Public Development, Division of Community Development for lead abatement projects at residential locations in Danville, Illinois
Indiana: $166,670.00 to the IDEM Special Fund to be used for projects retrofitting diesel vehicles
Ohio: $166,670.00 to the State of Ohio Environmental Protection Agency’s fund for the Clean Diesel School Bus Program
Kansas
1. Emporia School District Diesel Retrofit: $22,640.36 to the Emporia Unified School District No. 253 for the purchase and installation of diesel oxidation catalyst retrofitting equipment on school buses owned and operated by USD 253.2. Southern Lyon County School District Diesel Retrofit: $16,065.00 for a project retrofitting diesel vehicles owned and operated by the Southern Lyon County Unified School District No. 252.
3. KACEE Fund Contribution: $44,630.00 to the Kansas Association for Conservation and Environmental Education to provide for environmental education within the State of Kansas.
Mississippi
1. Hancock County Hazardous Materials Equipment and Training SEP: $20,843.75 to the Hancock County Fire Department for hazardous materials response equipment and training2. Long Beach Fire Department Hazardous Materials Equipment and Training SEP: $20,843.75 to the Long Beach Fire Department for hazardous materials response equipment and training
3. Biloxi Fire Department Hazardous Materials Equipment and Training SEP: $20,843.75 to the Biloxi Fire Department for hazardous materials response equipment and training
4. Pass Christian Fire Department Hazardous Materials Equipment and Training SEP. $20,843.75 to the Pass Christian Fire Department for hazardous materials response equipment and training
Iowa: $83,335.00 to the Bus Emissions Education Program administered by the School Administrators of Iowa
Alabama: $83,333.00 for a project retrofitting diesel vehicles owned and operated by the Decatur City Schools and/or the City of Huntsville
Contacts: Mary McAuliffe, ORC, (312) 886-6237; Morgan Jencius, ARD, (312) 886-2407
U.S. EPA signs Third and Final Consent Agreement for remediation of Chevron’s Cincinnati Refinery. Chevron to clean groundwater, extract petroleum soil vapors under Hooven, Ohio, and protect the Great Miami River from refinery-related releases of petroleum hydrocarbons. Work to be performed by Chevron under all three agreements estimated to be worth $100 million.
On November 1, 2006, U.S. EPA finalized a RCRA Section 3008(h) Corrective Measures Implementation Administrative Order on Consent (AOC) with Chevron U.S.A., Inc., for clean up of groundwater, prevention of releases of petroleum to the Great Miami River, and soil vapor extraction of petroleum hydrocarbon vapors in the Town of Hooven, Ohio. The petroleum released to the environment is from Chevron’ refinery in neighboring Cleves, Ohio. The AOC, In the Matter of: Chevron U.S.A. Inc., Cleves, Ohio, U.S. EPA Docket No. RCRA-05-2007-0001, embodies Chevron’s commitment to continue to conduct soil vapor extraction to remove volatile petroleum constituents from the Light Non-Aqueous Phase Liquids (LNAPL) smear zone under the Town of Hooven, which lies directly to the west of the former refinery; to remediate a contaminated plume of groundwater underlying its former refinery and part of the Town of Hooven to U.S. Safe Drinking Water Act Maximum Contaminant Levels (MCLs); and to monitor the banks of the Great Miami River at the refinery and down-stream for releases of petroleum to the river or from the river bank, as well as to undertake engineered controls, as necessary, to stabilize the river bank to prevent further releases of petroleum. Chevron will conduct periodic high-grade pumping to remove LNAPL from the groundwater plume for up to 12 years. Monitored Natural Attenuation of the dissolved contaminant plume and LNAPL plume will go on for an additional 30 years, in order to achieve MCLs in the plume. If it appears the performance levels will not be met on a timely basis, U.S. EPA’s August 2006 Final Decision, which Chevron will implement pursuant to this AOC, provides that Chevron must employ any number of technologies to remediate the plume within that timeframe.
The Chevron Cincinnati refinery covers approximately 250 acres, and is situated on the banks of the Great Miami River approximately 20 miles west of Cincinnati and 3 miles north of the Ohio River. The refinery produced various petroleum based fuels from before World War II until approximately 1987. The facility also includes a 5-acre landfarm situated on a hill above Hooven, Ohio, two islands in the Great Miami River, and five pipelines formerly used to convey petroleum products three miles south to Chevron’s loading dock on the Ohio River. The Final Decisions and Agreements anticipate that adequate institutional controls will be put in place to allow for mixed used industrial and recreational development in the future. Oil had been released from the groundwater into the Great Miami River, precipitating the need to start the clean up of oil in groundwater. Chevron has removed via pump and treat over 3 million of a total estimated 5 million gallons of floating petroleum from the plume in the groundwater. Chevron’s own modelling also showed that the well field for the Town of Cleves, on the bank of the river opposite the refinery, would be contaminated by migration of the Chevron oil plume under the river if Chevron ceased its pump and treat. This well field has since been moved from Cleves.
This Chevron case was precedential in that the 1993 AOC was believed to be the first time in the country where RCRA corrective action was used to obtain pump and treat of petroleum hydrocarbons from the groundwater. U.S. EPA asserted that the petroleum released during facility operations was not “product” as asserted by Chevron, but a “waste” subject to corrective action. This third and final AOC not only requires Chevron to implement U.S. EPA’s August 2006 Final Decision, but to evaluate and implement additional measures if any further plume migration occurs. It is also unique in that this AOC requires Chevron to investigate and remediate any releases of petroleum or hazardous constituents that may be discovered in the future. The value of the work performed by Chevron pursuant to all three Agreements (1993, 2004, and 2006) is estimated to be worth $100 million.
Contact: Jerome P. Kujawa, ORC (312)-886-6731.
RCRA Permit to Vertellus Agriculture & Nutrition Specialties LLC:
U.S. EPA Region 5 issued a RCRA permit to Vertellus Agriculture & Nutrition Specialties LLC (formerly known as Reilly Industries, Inc.,) in Indianapolis, IN.
The permit mainly provides requirements for three boilers that burn hazardous waste. U.S. EPA has not yet authorized the state of Indiana to administer certain regulations, including the Boilers and Industrial Furnace regulations (40 CFR Section 266.100 et seq., known as the BIF regulations). U.S. EPA Region 5 issued the RCRA permit requirements for operations at the Permittee’s Facility, which fall under the BIF regulations. The permit became effective on November 6, 2006.
Contact: Jan Carlson, ORC, (312) 886-6059 and Jae Lee (312) 886-3781
Department of Justice files cost recovery action against parties that arranged for the disposal of tires or transported tires to Carl’s Tire Retreading Fire Site in Grawn, Michigan
On November 14, 2006, the U.S. Department of Justice filed a cost recovery action against 15 Potentially Responsible Parties for response costs incurred at the Carl’s Tire Retreading Site in Grawn, Grand Traverse County, Michigan. The Department of Justice also obtained tolling agreements from 10 additional Potentially Responsible Parties (PRPs).
On December 29, 1995, shredded tire material at the Carl’s Retreading site caught fire and burned for 23 days. The burning tires and shredded tire material released a large quantity of pyrolitic oil containing benzene, ethylbenzene, styrene, toluene, xylenes, zinc and other hazardous substances. At the time of the fire, Carl’s Retreading was owned by 3 partners, Mr. Steven D. Hubert, Mr. David A. Hubert, and Mr. Michael B. Grant. The facility was located at 5175 Sawyer Wood Drive in Grawn, Michigan from 1993 until sometime around 1997. U.S. EPA’s initial response at the site was limited as the State of Michigan took the lead both in extinguishing the fire and in conducting a subsequent removal action. The State later, however, requested U.S. EPA’s assistance in mitigating the releases of hazardous substance to soils and groundwater at the Site. U.S. EPA’s response costs at the Site are approximately $3 million.
Each of the 3 partners of Carl’s Retreading, as well as a corporation formed in 1997 by Mr. Steven Hubert to own and operate the Site, filed for and was discharged from bankruptcy between 1999 and 2001.
This action seeks to recover costs from parties that either transported or arranged for the disposal of tires at the Site prior to the fire. The tires that the generators sent to Carl’s were typically whole scrap tires that generators paid Carl’s to pick up. Often Carl’s dropped off trailers at a generator’s site and later picked up those trailers after the generators filled them with whole scrap tires.
Primary contact, Crissy L. Pellegrin, ORC, (312) 353-5263
Consent Agreement and Final Order executed in RCRA Administrative Action for Redeen Engraving Company and Floyd W. Redeen
On November 9, 2006, the Regional Administrator executed a Consent Agreement and Final Order (“CAFO”) in an enforcement action, resolving an administrative complaint filed against Redeen Engraving Company (“the Company”) and Floyd W. Redeen, under the Resource Conservation and Recovery Act (“RCRA”). The CAFO provides for payment of a $100 civil penalty by Mr. Redeen for the Company’s violations of state authorized RCRA regulations in the Illinois Administrative Code, and Section 3008(a) of RCRA, 42 U.S.C. § 6928(a).
On June 19, 2006, a Region 5 official, on delegated authority of the Administrator, filed a Complaint and Compliance Order, alleging in two counts that the Company violated the Illinois Administrative Code, and Section 3008(a) of RCRA, 42 U.S.C. § 6928(a), in that the Company: (1) stored hazardous waste without having a permit; and (2) failed to document hazardous waste determinations. Prior to the filing of the Complaint, the Company sold its engraving business and was dissolved by Mr. Redeen, its sole shareholder. While under Illinois law, as sole shareholder Mr. Redeen is liable for the Company’s penalty in an amount equal to his distribution of the Company’s assets, a thorough analysis of Mr. Redeen’s financial circumstances by an agency financial analyst revealed that he had an ability to pay only a nominal penalty. Consequently, the Administrator’s Delegated Complainant has agreed to resolve this matter on Mr. Redeen’s payment of $100.
Primary contact, Richard Wagner, ORC, (312) 886-7947
Region Resolves ECPRA Section 313 Case Against Accu-Tronics Manufacturing, Inc. ( St. Paul, Minnesota).
On November 7, 2006, the Regional Administrator signed a Consent Agreement and Final Order (CAFO) in which Accu-Tronics Manufacturing, Inc. (Accu-Tronics) agreed to pay a penalty of $2,000 for a violation of Section 313 of the Emergency Planning and Community Right-to-Know Act (EPCRA), 42 U.S.C. § 11023, at its facility in St. Paul, Minnesota. Specifically, Region 5 alleged that Accu-Tronics failed to timely file its calendar year 2004 Toxic Chemical Release Inventory Form R, for lead that it processes at its facility, with EPA and the State of Minnesota by July 1, 2005, as required by Section 313 of EPCRA. Respondent filed its calendar year 2004 Form R on November 2, 2005. The parties agreed that settling the matter, without further litigation, was in the public interest. The CAFO became effective on November 9, 2006.
Ann Coyle, primary contact, ORC, (312) 886-2248; Terence Bonace, secondary contact, WPTD, (312) 886-3387.
Region 5 files a Consent Agreement and Final Order to commence and conclude case against L&M Radiator, Inc., Hibbing, Minnesota.
On November 15, 2006, Region 5 filed a Consent Agreement and Final Order (CAFO) commencing and resolving simultaneously an administrative penalty action against L&M Radiator, Inc., for two violations of Section 313 of the Emergency Planning and Community Right-to-Know Act (EPCRA). Specifically, L&M allegedly failed to timely file Form Rs with the U.S. EPA and the State of Minnesota for Copper and Lead in calendar year 2002. L&M processed these toxic chemicals above the regulatory thresholds and, therefore, was required to file the Form Rs by July 1, 2003. L&M did not file until September 24, 2003. Region 5 calculated a proposed penalty in this matter of $29,684. In response to a Notice of Intent to File letter, L&M indicated a desire to resolve this matter. Region 5 offered and L&M accepted a 30% reduction for cooperation and efforts to comply. The agreed upon CAFO commences and concludes the case, and requires L&M to pay a penalty of $20,779.
Primary contact: Mony Chabria, ORC, (312) 886-6842
Week of November 20, 2006
EPA Regions 3 and 5 enter into an Administrative Order on Consent with DuPont to lower action level for C-8 (PFOA) caused by Washington Works Facility.
On November 20, 2006, the Administrators for EPA Regions 3 and 5 signed an Order on Consent with E.I. DuPont de Nemours & Co. The Order requires treatment or provision of alternate drinking water to residents affected by DuPont’s Washington Works facility, located near Parkersburg, West Virginia. The facility, which manufactures products using perfluorooctanoic acid (also known as PFOA or C8) – is located on the Ohio River and affects drinking water sources in both WV and Ohio.
The Order contains an action level of 0.50 ppb that triggers the offer of installation of drinking water treatment or offer of provision of an alternate source of drinking water, by DuPont. This Order replaces an Order on Consent signed by Regions 3 and 5 in 2002, which resulted in a temporary threshold level of 150 ppb.
Currently there is no consensus on the possible toxicity of C-8 to humans. However, recent results from experimental animal studies and new data on human blood serum levels of C-8 in residents living near the Washington Works facility raise concern for possible human health effects from C-8 in drinking water. This Order is a precautionary action based on an evaluation of these recent study results and the new data. More human health and experimental studies are in progress, but results will not be available for several more years. In the meantime, the new action level will reduce local exposure to C-8 from drinking water and reduce the possibility of adverse health effects. DuPont agreed to the site-specific action level of 0.50 ppb.
C-8 is used extensively in various manufacturing processes nationwide, including those for stain-resistant carpets and fabrics, stain-resistant paints, fire fighting foam, and oil- and grease-resistant food cartons and wrappers . Therefore, in developing this Order, EPA closely coordinated with the Office of Civil Enforcement, the Office of Water, the Office of Pollution Pesticides and Toxic Substances, and the states of Ohio and West Virginia. EPA also carefully developed a communications strategy in connection with the Order.
Contacts: Jacqueline Clark, ORC, (312) 353-4191; Charlene Denys, Water Division (312) 886-6206.
U.S. EPA issues RCRA 3008h Administrative Corrective Action Order in Lakeshore Foundry, Inc. of Waukegan, Illinois
On November 7, 2006, an Agreed Administrative Corrective Action Order in Lakeshore Foundry, Inc., was issued. The Order requires the Lake Shore Foundry (LSF) facility to address hazardous waste contamination (principally lead) above acceptable Federal and Illinois background levels in soil and other effected media; and to provide requisite proof of financial ability to properly perform and/or fund the activities subject to the Order.
The Resource Conservation and Recovery Act (RCRA) § 3008h Order will respond to findings of lead and potentially other hazardous substances at the active metals foundry operated by LSF. The 3008h Order requires LSF to perform a RCRA Interim Measures action and create an accompanying report; create a Description of Current Conditions demonstrating a facility-wide assessment of risks and proposed responses under RCRA; help develop a proposal of final corrective measures with a Statement of Basis; and, implement all appropriately determined final corrective measures at the facility.
The LSF facility is an active metal foundry located at 653 Market Street, Waukegan, Lake County, Illinois. LSF physically borders on the shore of Lake Michigan. The LSF facility property has a 100-plus year history of heavy industrial uses, and LSF has operated in its current capacity and location for at least 50 years. The United States Environmental Protection Agency (EPA) and the Illinois Environmental Protection Agency (ILEPA) sampling inspections at LSF in 2003 and 2004 found toxicity characteristic leaching procedure (TCLP) lead concentrations in foundry sand above the regulatory limit of 40 CFR 261.24, as well as indications of other hazardous wastes and constituents pursuant to 40 CFR Part 261 
During 2004-2005, negotiations ensued between EPA and LSF. After internal EPA determinations concerning administrative penalty issues and enforcement approach, a RCRA 3008h Agreed Order was negotiated and issued.
Contacts: Tom Turner, ORC, 312-886-6613; and 312-886-6613; and Jill Groboski, RCRA Compliance Section 312-886-3890.
Region 5 files FIFRA Consent Order concerning Tri-Ag Distributors, Inc.
On November 20, 2006, Region 5 filed a Consent Agreement and Final Order (CAFO) under Section 14(a) of the Federal Insecticide, Fungicide, and Rodenticide Act, as amended (FIFRA), 42 U.S.C. § 136 l(a), and 40 C.F.R. §§ 22.1(a)(1), 22.13, 22.18, and 22.35, resolving claims for civil penalties against Tri-Ag Distributors, Inc., (Tri-Ag). The CAFO simultaneously commenced and concluded EPA’s action for the alleged violations of FIFRA. In the CAFO, EPA alleges that Tri-Ag produced pesticides in a Farina, Illinois, establishment which did not have a valid establishment registration number under FIFRA. In the CAFO, EPA also alleges that Tri-Ag distributed or sold those pesticides using labels that did not bear a valid establishment registration number.
Tri-Ag has now returned to compliance with the requirements of FIFRA. Under the CAFO, Tri-Ag agrees to pay a penalty of $2,074. This case is part of the recent Region 5 enforcement initiative focusing on unregistered FIFRA establishments.
Contact: Maria Gonzalez, primary contact, (312) 886-6630; David Star, secondary contact, (312) 886-6009.
Week of November 27, 2006
Cleveland-Area Man Pleads Guilty to Hate Crime; United States v. Joesph Kuzlik
A Cleveland-area man, Joseph Kuzlik, pleaded guilty today to conspiring to commit and for committing hate crimes targeting African-American residents of Cleveland, Ohio. Specifically, Kuzlik, who had been charged along with another individual, Cleveland resident David Fredericy, pleaded guilty to conspiracy and interference with federally protected housing rights because of race. He also pleaded guilty to making false statements to federal investigators. Previously Fredericy pleaded guilty to all the counts of the indictment. The indictment in this case alleged that Fredericy and Kuzlik engaged in a series of acts intended to threaten and intimidate African-American residents in their neighborhood. The indictment charged, among other acts, that the defendants placed a toxic substance, mercury, on the porch of an inter-racial family with children. As part of his guilty plea, Kuzlik admitted that he did so for the purpose of intimidating them because they were an inter-racial family. Kuzlik also admitted to lying to federal investigators from the Environmental Protection Agency, the federal agency that was initially charged with cleaning up the mercury and investigating the incident, for the purpose of keeping his unlawful actions secret. The maximum potential penalties for conviction on the conspiracy and civil rights charges is 10 years in prison, a $250,000 fine, and three years of supervised release following any period of incarceration, per count. The maximum term of imprisonment for the false statements charge is five years. A sentencing hearing has been scheduled for February 21, 2007. This case was investigated, in a joint investigation, by the Federal Bureau of Investigation, the Ohio Environmental Protection Agency, the City of Cleveland Police Department, and the U.S. EPA CID, all members of the Northeast Ohio Environmental Crimes Task Force.
Contact: Brad Beeson, Criminal Counsel, (440) 250-1761
U.S. EPA Region 5 Issues CERCLA Administrative Cashout Settlement.
On November 18, 2006, U.S. EPA issued a Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) administrative cashout agreement concerning the Calumet Containers Superfund Site located in Hammond, Indiana. The settlement requires 51 former customers of the Calumet Containers facility to make cash payments totaling $1,664,967 to resolve potential civil liability under Sections 106 and 107 of CERCLA and under Section 7003 of (the Resource Conservation and Recovery Act) RCRA. In exchange, the settling parties will receive a full covenant not to sue from U.S. EPA concerning the Site. The Site formerly housed a factory where drums containing various chemicals, paints and inks were emptied, cleaned and repainted. The Agency investigated the Site and determined that a cleanup was necessary due to widespread soil contamination. Following the cleanup of the Site, the land was turned into a conservation area.
Contacts: Rich Murawski, ORC, (312) 886-6721; Verneta Simon, Superfund Division (312) 886-3601
Emissions Tester admitted making false pollution reports, banned from air testing for two years.
On Friday, November 17, 2006, Larry Tester, current owner of Genesis Air, Inc., a smokestack emissions testing firm, was charged in Michigan state court with one count of submitting a false statement in a report required under Michigan law. Tester admitted in court that he had falsified data in an air emissions test report sent both to his client and the Michigan DEQ which made the test appear to have been validly conducted. In fact, Tester admitted he knew the test was not valid. Tester pleaded guilty to the charge in accordance with a plea agreement with the government, and was sentenced the same day to serve 2 years probation and to pay $12,890 in restitution to his former client. As a part of his probation, Tester is prohibited from being involved in the stack testing business for the term of his probation, and is required to publish a public apology in a trade journal explaining what he did and the repercussions.
Contact: David M. Taliaferro (312) 886-0815.