STATE
OF INDIANA |
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BEFORE THE INDIANA DEPARTMENT |
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COMMISSIONER OF THE DEPARTMENT Complainant, v. ELANCO
ANIMAL HEALTH – A DIVISION OF ELI LILLY AND COMPANY, Respondent. |
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AGREED ORDER
Complainant
and Respondent desire to settle and compromise this action without hearing or
adjudication of any issue of fact or law, and consent to the entry of the
following Findings of Fact and Order.
Pursuant to IC 13-30-3-3, entry into the terms of this Agreed Order does
not constitute an admission of any violation contained herein. Respondent's entry into this Agreed Order
shall not constitute a waiver of any defense, legal or equitable, which
Respondent may have in any future administrative or judicial proceeding, except
a proceeding to enforce this order.
I. FINDINGS OF FACT
1.
Complainant
is the Commissioner (“Complainant”) of the Indiana Department of Environmental
Management (“IDEM”), a department of the State of Indiana created by Indiana
Code (“IC”) 13-13-1-1.
2.
Respondent
is Elanco Animal Health – A Division of Eli Lilly and
Company, which owns and operates the animal health products manufacturing plant
with Plant ID No. 165-00009, located at 10500 South State Road 63, in Clinton,
Vermillion County, Indiana.
3.
IDEM
has jurisdiction over the parties and the subject matter of this action.
4.
Respondent
waives issuance of a Notice of Violation and to the settlement period of sixty (60)
days as provided for by IC 13-30-3-3.
5.
Respondent
owns and operates an animal health products manufacturing plant for the
manufacture of animal health care products.
6.
On
January 13, 2012, Respondent submitted an application for a minor source
modification and a Title V minor permit modification for equipment in the C45 Monensin product recovery operation. The application included emission
calculations which indicated that the potential uncontrolled emissions were
approximately nineteen (19) tons per year of volatile organic compounds. Because the potential uncontrolled emissions
were less than twenty-five (25) tons per year for the new equipment, a minor
source modification was determined to be appropriate for the permit review
process.
7.
On
January 24, 2012, IDEM issued a minor source modification and a minor Title V modification
on March 21, 2012 to Respondent.
8.
On
September 14, 2012, Respondent submitted a “Self-Disclosure Notification” which
stated that voluntary emission testing of the new equipment during process
startup indicated that the potential uncontrolled emissions were greater than
those supplied with the minor permit application that was submitted on January
13, 2012. The revised uncontrolled potential
to emit volatile organic compound (VOC) emissions was 228 tons per year. The VOC emissions from the equipment have
been voluntarily controlled by a carbon absorber since the startup of the
equipment.
9.
The
failure to submit a permit application for a Significant Source Modification
and a Significant Part 70 Permit Modification prior to the Construction and
Operation of the equipment in the C45 Monensin
product recovery operation is in violation of 326 IAC 2-7-12, Permit Condition
B.15 of Operating Permit Number 27283.
10.
On
November 13, 2012, Respondent submitted an application for significant source
modification and a significant Title V permit modification for review. The application also included a Best
Available Control Technology (BACT) Analysis as required by 326 IAC 8-1-6.
11.
On
January 14, 2013, the draft significant source modification permit and the
significant Title V permit modification permit were public noticed for
comments.
12.
In
recognition of the settlement reached, Respondent waives any right to
administrative and judicial review of this Agreed Order.
II. ORDER
1.
This
Agreed Order shall be effective (“Effective Date”) when it is approved by
Complainant or Complainant’s delegate, and has been received by
Respondent. This Agreed Order shall have
no force or effect until the Effective Date.
2.
Respondent
shall comply with 326 IAC 2-7-12, Permit Condition B.15 of Operating Permit
Number 165-27283-00009.
3.
All
submittals required by this Agreed Order, unless Respondent is notified
otherwise in writing by IDEM, shall be sent to:
David
L. Harrison, Compliance and Enforcement Manager |
Compliance
and Enforcement Branch – Mail Code 61-53 |
Indiana
Department of Environmental Management |
100
North Senate Avenue |
Indianapolis,
IN 46204-2251 |
4.
Respondent
is assessed a civil penalty of Twenty Thousand Dollars ($20,000.00.). Pursuant
to IDEM’s Self-Disclosure and Environmental Audit policy, the penalty was
reduced to zero since the self disclosure policy allows for a 100% reduction of
the penalty.
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5.
This
Agreed Order shall apply to and be binding upon Respondent and its successors
and assigns. Respondent’s signatories to
this Agreed Order certify that they are fully authorized to execute this Agreed
Order and legally bind the party they represent. No change in ownership, corporate, or
partnership status of Respondent shall in any way alter its status or
responsibilities under this Agreed Order.
6.
In
the event that any terms of this Agreed Order are found to be invalid, the
remaining terms shall remain in full force and effect and shall be construed
and enforced as if this Agreed Order did not contain the invalid terms.
7.
Respondent
shall provide a copy of this Agreed Order, if in force, to any subsequent owners
or successors before ownership rights are transferred. Respondent shall ensure that all contractors,
firms and other persons performing work under this Agreed Order comply with the
terms of this Agreed Order.
8.
This
Agreed Order is not and shall not be interpreted to be a permit or a
modification of an existing permit. This
Agreed Order, and IDEM’s review or approval of any submittal made by Respondent
pursuant to this Agreed Order, shall not in any way relieve Respondent of its
obligation to comply with the requirements of its applicable permit or any
applicable Federal or State law or regulation.
9.
Complainant
does not, by its approval of this Agreed Order, warrant or aver in any manner
that Respondent’s compliance with any aspect of this Agreed Order will result
in compliance with the provisions of any permit, order, or any applicable
Federal or State law or regulation.
Additionally, IDEM or anyone acting on its behalf shall not be held
liable for any costs or penalties Respondent may incur as a result of
Respondent’s efforts to comply with this Agreed Order.
10.
Nothing
in this Agreed Order shall prevent or limit IDEM’s rights to obtain penalties
or injunctive relief under any applicable Federal or State law or regulation,
except that IDEM may not, and hereby waives its right to, seek additional civil
penalties for the same violations specified in this Agreed Order.
11.
Nothing
in this Agreed Order shall prevent IDEM or anyone acting on its behalf from
communicating with the EPA or any other agency or entity about any matters
relating to this enforcement action.
IDEM or anyone acting on its behalf shall not be held liable for any
costs or penalties Respondent may incur as a result of such communications with
the EPA or any other agency or entity.
12.
This
Agreed Order shall remain in effect until IDEM issues a Resolution of Case
letter to the Respondent.
TECHNICAL
RECOMMENDATION: |
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RESPONDENT: |
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Department
of Environmental Management |
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Elanco
Animal Health – A Division of Eli Lilly and Company |
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By: |
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Craig
Henry, Chief |
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Printed: |
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Compliance
and Enforcement Section 3 |
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Title: |
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Office
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COUNSEL
FOR COMPLAINANT: |
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COUNSEL
FOR RESPONDENT: |
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For
the Department of Environmental Management |
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By: |
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By: |
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Deputy
Attorney General |
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Date: |
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Date: |
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APPROVED
AND ADOPTED BY THE INDIANA DEPARTMENT OF ENVIRONMENTAL |
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MANAGEMENT THIS |
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DAY OF |
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2013. |
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For
the Commissioner |
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Signed
on March 28, 2013 |
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Keith
Baugues, Assistant Commissioner |
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Office
of Air Quality |
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Indiana
Department of Environmental Management |
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