STATE OF INDIANA

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SS:

BEFORE THE INDIANA DEPARTMENT OF

 

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COUNTY OF MARION

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ENVIRONMENTAL MANAGEMENT

 

COMMISSIONER OF THE DEPARTMENT

 

 

OF ENVIRONMENTAL MANAGEMENT,

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Complainant,

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v.

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Case # 2014-22302-H

 

 

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STEEL DYNAMICS, INC,

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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 Steel Dynamics, Inc. Flat Roll Group, Butler Division (“Respondent”), which owns/operates the facility with United States Environmental Protection Agency (EPA) ID No. INR 000 001 099, located at 4500 County Road 59 in Butler, DeKalb County, Indiana (“Site”).

 

3.                  IDEM has jurisdiction over the parties and the subject matter of this action.

 

4.                  Pursuant to IC 13-30-3-3, IDEM issued a Notice of Violation (NOV)  dated September 17, 2014 via Certified Mail to:

 

Mr. Mark D. Millett, President

Ms. Theresa E. Wagler, Registered Agent

Steel Dynamics, Inc.

for Steel Dynamics, Inc.

7575 W. Jefferson Boulevard

7575 W. Jefferson Boulevard

Fort Wayne, IN 46804

Fort Wayne, IN 46804

 

5.                  Respondent provided a response to this NOV on November 13, 2014.

 

6.                  Respondent notified EPA of Large Quantity Generator activities on April 25, 1995.

 

7.                  Respondent operates a flat-roll mini-steel mill for the production of rolled steel products. Manufacturing operations at the facility include scrap melting, fluxing, casting, rolling, coil, cleaning and coating, acid pickling, hot-dip zinc-coating, paint line coating, gauge reduction, annealing, and tempering.

 

8.                  Other facilities are operating onsite:

 

·                     Iron Dynamics, a division of SDI (IDD) is where direct reduced iron (DRI) is produced.  IDD operates a Rotary Hearth Furnace (RHF) and a Submerged Arc Furnace (SAF).  Slags are generated from the SAF.

·                     Butler Mill is a slag processing facility operated by a contractor. Butler Mill takes slag from the various furnaces at SDI and IDD including the electric arc furnace (EAF), SAF, and the ladle metallurgical furnace (LMF).  These slags are processed by Butler Mill for various uses but mostly for roadway projects.  The slag that is not sold is used for berming at various sites throughout Respondent’s property, mostly to the northwest corner of Respondent’s property.

 

9.                  329 IAC 3.1 incorporates certain federal hazardous waste management requirements found in 40 CFR Parts 260 through 270, and Part 273 including these identified below.

 

10.              During an investigation including an inspection on March 24 and April 2, 2014, conducted by a representative of IDEM, the following violations were found:

 

a.                   Pursuant to 40 CFR 262.11, a person who generates a solid waste must determine if that waste is hazardous.

 

As noted during the April 2, 2014 inspection, Respondent did not conduct a proper waste determination on the green-colored liquid observed in the decon pit. This liquid was generated from the triple rinsing of product totes mainly from the Galvanizing Department as well as the Hot Mill Coiler. Containers and totes waiting to be deconned in this area were of various chemicals including the following: Bondrite Alkaline C-AK 1200 Cleaner, Bondrite 1421 A Replenisher M-CR 1402 W Chromate Trt (phosphoric acid 75%), EP 460 gear oil, M-ZN 742- AE zinc phosphate, 2 Metlube 2200 EP, Techni-Kool 200, BR C-MC 2550 Maintenance Cleaner, Bulk RP 9100 Corrosive Ammonium Dichromate, Craft.

 

Max-Butyl degreaser, and 40-50 totes mostly labeled, “Used Oil”.  Bondrite 1421 and other chrome-based liquids are listed as hazardous waste in Appendix 9 of Respondent’s Contingency Plan.  Many of the Safety Data Sheets (SDS) for the chemicals list incompatible materials, many of which were at the Decon Pit already deconned or to be deconned at the time of the inspection.  Respondent’s representative stated during the inspection waste profiles were available for each potential waste stream coming from the Decon Pit.

 

During the April 2, 2014 inspection, a waste determination was requested for the green-liquid in the decon pit.  On April 4, 2014 an email was submitted to IDEM indicating that the Decon Pit had been closed down and all the wastes observed in the pit were taken to the wastewater treatment plant as well as the totes without conducting a waste determination on the material from the pit.  In another email submitted April 17, 2014 the Respondent’s representative stated that all the materials in the totes have been profiled because they are typically used in processes that either discharge to water treatment or are used in other processes for which there is a profile.

 

List of waste streams and profiles of wastes taken to the sludge pit have been submitted however, this did not include analytical information and did not include the Decon Pit waste.  SDI did provide sample results for the wastewater treatment filter cake after the Decon pit waste was taken to the onsite wastewater treatment plant.

 

b.                  Pursuant to 40 CFR 262.34(a)(3), a generator may accumulate hazardous waste on-site for 90 days or less without a permit, provided that, while being accumulated on-site, each container and tank is labeled or marked clearly with the words "Hazardous Waste."

 

As noted during the inspections, Respondent accumulated hazardous waste on- site, without a permit, and did not label or clearly mark a hazardous waste tank with the words "Hazardous Waste."  Specifically, the south hazardous waste silo (Silo 5B) used to store electric arc furnace (EAF) dust was labeled with the words indicating that the waste becomes a hazardous waste (K061) when it exits the tank.  The tank must be labeled “Hazardous Waste”.

 

Respondent contends the signage at the time of the inspection satisfied the basic requirement that the silo be labeled with the words “Hazardous Waste” because the label on the silo contains those key words.  However, Respondent ordered new signage as noted with one that says simply “Hazardous Waste.”

 

c.                   Pursuant to 40 CFR 262.34(a)(1)(ii) referencing 40 CFR 265.192(a), a generator with a new tank system must have a written assessment certified by an independent, qualified, registered, professional engineer in accordance with 40 CFR 270.11(d) attesting that the system has sufficient structural integrity.

 

As noted during the inspections, Respondent did not provide the required written integrity assessment for hazardous waste silo (5C), installed in 2008, used to store EAF dust (K061).  The assessment was conducted after the April 2, 2014 inspection and submitted via email on April 9, 2014. Subsequent information was submitted on August 25, 2015 and September 21, 2015 for IDEM to review.

 

d.                  Pursuant to 329 IAC 13-4-3(d), generators must label all used oil containers and aboveground tanks with the words “Used Oil.”

 

As noted during the inspections, Respondent did not label twelve (12) fifty-five (55) gallon containers of used oil with the words “Used Oil.” The drums were labeled subsequent to the inspection per photograph sent via email March 26, 2014.

 

e.                   Pursuant to IC 13-30-2-1(3), no person shall deposit any contaminants upon the land in a place and manner that creates or would create a pollution hazard that violates or would violate 329 IAC 10-4-2.

 

Pursuant to IC 13-30-2-1(4), no person shall deposit or cause or allow the deposit of any contaminants or solid waste upon the land, except through the use of sanitary landfills, incineration, composting, garbage grinding, or another method acceptable to the solid waste management board.

 

Pursuant to 329 IAC 10-4-2, no person shall cause or allow the storage, containment, processing, or disposal of solid waste in a manner which creates a threat to human health or the environment, including the creating of a fire hazard, vector attraction, air or water pollution, or other contamination.

 

As noted during the inspection, Respondent deposited contaminants, including, but not limited to white milky liquid observed at several locations coming from the slag pile at the northwest corner of the facility upon the land in a place and manner that that creates or would create a pollution hazard that violates or would violate 329 IAC 10-4-2.

 

Depending on the location of the seepage from the slag piles, the white milky liquid drained north, south or west in ditches along CR 55.  The white milky liquid was observed from areas of the slag piles with and without vegetative cover.

 

The white milky liquid was draining to ditches not included in the NPDES/stormwater monitoring permit.  The white milky liquid was draining to ditches along CR 55 and draining via drainage tiles under the road to other properties. Respondent has purchased these properties.

 

11.              Respondent addressed the issues of the slag piles north of IDD and at the northwest corner that stretches from north to south along CR 55 and north of former CR 42 of the property noted at the time of the March 24, 2014 and April 2, 2014 inspections.  An inspection conducted on June 25, 2015 noted the berm had been seeded and established with vegetation.

 

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 the statutes and/or rules listed in the findings above.

 

3.                  Upon the Effective Date, Respondent shall comply with 40 CFR 262.11.  Specifically, Respondent shall ensure that a proper waste determination is made for all solid waste at the point of generation.

 

4.                  Upon the Effective Date, Respondent shall ensure compliance with 40 CFR 262.34(a)(3). Specifically, Respondent shall ensure hazardous waste tanks and containers are clearly labeled or marked with the words “Hazardous Waste”.

 

5.                  On September 10, 2015, Respondent submitted additional information requested by IDEM for the tank integrity assessment for Tank Silo 5C.  This information is currently under review by IDEM.

 

6.                  Upon the Effective Date, Respondent shall ensure compliance with 329 IAC 13-4-3(d), Specifically, Respondent shall ensure all used oil containers and aboveground tanks are labeled with the words “Used Oil.”

 

7.                  Upon the Effective Date, Respondent shall ensure that the berm north of IDD and at the northwest corner that stretches from north to south along CR 55 and north of former CR 42 of the property is maintained with adequate vegetation.

 

8.                  All submittals required by this Agreed Order, unless Respondent is notified otherwise in writing by IDEM, shall be sent to:

 

Christina Halloran, Enforcement Case Manager Office of Land Quality

Indiana Department of Environmental Management

100 North Senate Avenue

Indianapolis, IN 46204-2251

 

9.                  Respondent is assessed and agrees to pay a civil penalty of Twenty Three Thousand Six Hundred Dollars ($23, 600). Said penalty amount shall be due and payable to the Environmental Management Special Fund within thirty (30) days of the Effective Date; the 30th day being the “Due Date”.

 

10.              Civil penalties are payable by check to the “Environmental Management Special Fund.” Checks shall include the Case Number of this action and shall be mailed to:

 

Indiana Department of Environmental Management Office of Legal Counsel

IGCN, Room N1307

100 North Senate Avenue Indianapolis, IN 46204

 

11.              In the event that the monies due to IDEM pursuant to this Agreed Order are not paid on or before their Due Date, Respondent shall pay interest on the unpaid balance at the rate established by IC 24-4.6-1.  The interest shall be computed as having accrued from the Due Date until the date that Respondent pays any unpaid balance. Such interest shall be payable to the Environmental Management Special Fund, and shall be payable to IDEM in the manner specified in Paragraph 10, above.

 

12.              This Agreed Order shall apply to and be binding upon Respondent and its successors and assigns. Respondent’s signatory to this Agreed Order certifies that he/she is fully authorized to execute this Agreed Order and legally bind the party he/she represents represent.  No change in ownership, corporate, or partnership status of Respondent shall in any way alter its status or responsibilities under this Agreed Order.

 

13.              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.

 

14.              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.

 

15.              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 their obligation to comply with the requirements of their applicable permits or any applicable Federal or State law or regulation.

 

16.              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.

 

17.              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 the NOV.

 

18.              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.

 

19.              This Agreed Order shall remain in effect until Respondent pays the civil penalty in Order paragraph 9.  IDEM will then issue a Resolution of Case letter to Respondent.

 

TECHNICAL RECOMMENDATION:

RESPONDENT:

Department of Environmental Management

 

 

 

By: _________________________

By:  _________________________

 

Nancy Johnston, Section Chief

 

 

Enforcement Section

Printed: ______________________

Office of Land Quality

 

 

Title: ________________________

 

 

Date: __________________

Date: _______________________

 

 

 

 

 

COUNSEL FOR RESPONDENT:

 

 

 

 

 

By: ________________________

 

 

 

 

 

 

Date: ______________________

 

APPROVED AND ADOPTED BY THE INDIANA DEPARTMENT OF ENVIRONMENTAL

MANAGEMENT THIS

_________

DAY OF

_______________________,

2011.

 

 

For the Commissioner:

 

 

 

Signed 10/07/2015

 

Bruce H Palin

 

Assistant Commissioner

 

Office of Land Quality