STATE OF INDIANA

)

SS:

BEFORE THE INDIANA DEPARTMENT OF

 

)

 

 

COUNTY OF MARION

)

 

ENVIRONMENTAL MANAGEMENT

 

COMMISSIONER OF THE DEPARTMENT

)

 

OF ENVIRONMENTAL MANAGEMENT,

 

)

 

 

 

)

 

Complainant,

 

)

 

 

 

)

 

 

v.

 

)

Case No. 2019-26294-H

 

 

)

 

Oil Technology, Inc.,

 

)

 

 

 

)

 

Respondent.

 

)

 

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 Indiana Code ("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.

 

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 IC 13-13-1 1.

 

2.            Respondent is Oil Technology, Inc. ("Respondent''), which owns and operates the facility with EPA ID No. INR000015404 located at 3001 Dickey Road in East Chicago, Lake County, Indiana ("Site").

 

3.            Respondent notified the U.S. Environmental Protection Agency (U.S. EPA) of Used Oil Processor, Transporter, and Marketer activities.

 

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

 

5.            Pursuant to IC 13-30-3-3, IDEM issued a Notice of Violation ("NOV") via UPS to:

 

Oil Technology, Inc.

Attn: Gerald L. Piper, President and Registered Agent

1203 Sheffield Avenue

Dyer, Indiana 46311

 

6.            During an investigation including an inspection and a record review on June 4, 2019 conducted by a representative of IDEM, the following violations were found:

 

a.            Pursuant to 329 IAC 13-7-S(b), used oil processors or re-refiners may not store used oil in units other than tanks, containers, or units subject to regulation under 40 CFR 264 or 40 CFR 265.

 

As noted during the June 4, 2019 inspection, Respondent utilizes the tanker trucks secondary containment system to hold decanted water from the tanker trucks. Once Used Oil is observed coming from the hose where the decanted water is draining, the operator re-routes the Used Oil remaining in the tanker truck to a storage tank. This activity causes Used Oil to be stored in the secondary containment system.

 

Respondent’s tanker truck secondary containment system did not meet the definition of a container or tank and is not permitted.

 

Per 10/29/2019 Settlement Conference, Respondent stated employee error led to this violation. Respondent also stated that the normal procedure is that this process is piped directly to the storage tanks and water is not decanted to the secondary containment system.

 

b.            Pursuant to 329 IAC 13-7-5(h), upon detection of a release of used oil to the environment not subject to the requirements of 40 CFR 280, Subpart F, an owner or operator must perform the following clean-up steps: stop the release, contain the released·  used oil, and clean up and manage properly the released used oil and other materials.

 

As noted during the June  4, 2019 inspection, there were Used Oil releases visible in various locations at the Site and Respondent had not performed the required clean-up steps.

 

Per photos received dated 7/30/2019, Respondent cleaned 7 of 7 release violations.

 

c.                   Pursuant to IC 13-30-2-1(1), it is unlawful for any person to discharge, emit, cause or allow any contaminant or waste, including any noxious odor, either alone or in combination with contaminants from other sources into the environment in any form that causes or would cause pollution that violates or would violate rules, standards, or discharge or emission requirements adopted by the appropriate board under the environmental management laws.

 

As noted during the June 4, 2019 inspection, there were Used Oil releases visible in various locations at the Site.

 

 

Per photos received dated 7/30/2019, Respondent cleaned 7 of7 release violations.

 

d.                  Pursuant to 329 IAC 13-7-8(b), a used oil processor or re-refiner must report to the commissioner, in the form of a letter, on a biennial basis by March 1 of each even­ numbered year, the following information concerning used oil activities during the previous calendar year: the EPA identification number, name, and address of the processor or re-refiner, the calendar year covered by the report, and the quantities of used oil accepted for processing or re-refining, and the manner in which the used oil is processed or re-refined, including the specific processes employed

 

As noted during the June 4, 2019 inspection, Respondent did not submit to IDEM the 2018 required report for its Used Oil activities for the previous calendar year.

 

Respondent corrected this violation on Used Oil Management Report State Form 52392, dated 6/12/2019.

 

e.                  Pursuant to 329 IAC 13-7-3(b)(5), the contingency plan must be reviewed, immediately amended, and redistributed to the entities identified in subdivision (4)(b), if necessary, whenever: applicable regulations are revised; the plan fails in an emergency; the facility changes its design, construction, operation, maintenance, or other circumstances: in a way that materially increases the potential for fires, explosions, or releases of used oil; or changes the response necessary in an emergency; the list of emergency coordinators changes; or the list of emergency equipment changes.

 

As noted during the June 4, 2019 inspection, Respondent had not updated the contingency plan to reflect the change in the potential for release by the addition of 20,000 gallons of Used Oil storage (the Baker tank) or the change in the primary response supervisor.

 

Per 10/29/2019 Settlement Conference, Respondent stated that the Baker tank had been removed from the Site. The Spill Prevention Control and Countermeasure (SPCC) Plan was updated to reflect the change in the primary response coordinator.

 

f.                    Pursuant to 329 IAC 13-7-S(i)(l), owners and operators who store or process used oil in aboveground tanks must comply with the following requirements: (A) At closure of a tank system, the owner or operator must remove or decontaminate: (i) used oil residues in tanks; (ii) contaminated containment system components; (iii) contaminated soils; and (iv) structures and equipment contaminated with used oil; and manage them as hazardous waste unless the materials are not hazardous waste under 40 CFR261.

 

As noted during the June 4, 2019 inspection, Respondent did not remove or decontaminate Used Oil residues in a tank which had been taken out of service. The tank is located south of the metal building.

 

Per photos received dated 8/9/2019, Respondent corrected this violation.

 

g.                  Pursuant to 329 IAC 13-7-5(f)(2) and (3), new aboveground tanks used to store or process used oil at processing and re-refining facilities must be equipped with a secondary containment system that is sufficiently impervious to used oil to prevent any used oil released into the containment system from migrating out of the system to the soil, ground water, or surface water. The secondary containment system must be designed and operated to contain one hundred percent (100%) of the capacity of the largest tank within the secondary containment boundary.

 

As noted during the June 4, 2019 inspection, Respondent had added a 20,000 gallon Baker tank which is situated on gravel and is surrounded on three sides by a gravel berm. The gravel is not sufficiently impervious to Used Oil to prevent Used Oil released into the containment system from migrating out of the system to the soil, ground water, or surface water. Respondent also did not know if this secondary containment design would store 100 percent of the volume of the Baker tank.

 

Per photo received dated 8/9/2019, Respondent relocated the Baker tank to a cement pad with a curb.

 

Per 10/29/2019 Settlement Conference, Respondent stated that the Baker tank had been removed from the Site.

 

7.            Orders of the Commissioner are subject to administrative review by the Office of. Environmental Adjudication under IC 4-21.5; however, in recognition of the settlement reached, Respondent acknowledges notice of this right and 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 rules listed in the findings of fact above.

 

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

 

Gregory Pipher, Enforcement Case Manager Office of Land Quality

Indiana Department of Environmental Management

100 North Senate Avenue

Indianapolis, IN 46204-2251

 

4.            Pursuant to IC 13-30-4-1, Respondent is assessed and shall pay a civil penalty of Nine Thousand Four Hundred and Fifty Dollars ($9,450.00). Within thirty (30) days of the Effective Date, Respondent shall pay a portion of this penalty in the amount of One Thousand Eight Hundred Ninety Dollars ($1890.00). Said penalty amount shall be due and payable in twelve (12) consecutive monthly installments. The first installment shall be due within thirty (30) days of the Effective Date and the remaining installment payments shall be made every 30 days thereafter, the thirtieth day being the "Due Date". Said penalty amount shall be due and payable to the "Environmental Management Special Fund" in twelve (12) consecutive monthly installments of One Hundred and Fifty Eight Dollars ($158.00). Checks shall include the Case Number of this action and shall be mailed to:

 

Indiana Department of Environmental Management Accounts Receivable

IGCN, Room 1340

100 North Senate Avenue Indianapolis, Indiana 46204

 

5.            In lieu of payment to IDEM of the remaining civil penalty, Respondent shall make a cash payment of Seven Thousand Five Hundred and Sixty Dollars ($7560.00) to the Indiana State Department of Health- Lead Trust Fund ("ISDH-Lead Trust Fund") to fund a Supplemental Environmental Project ("SEP") for activities related to the abatement of lead in qualifying residential properties in Indiana. Said penalty amount shall be paid in twelve (12) consecutive monthly installments of Six HW1dred Thirty Dollars ($630.00). Completed 12 months of full payments to the ISDH-Lead Trust Fund satisfies Respondent's obligation to W1dertake a SEP to offset a portion of the civil penalty assessed in this matter.

 

Implementation of this SEP will benefit Indiana communities by reducing the exposure to lead in homes where owners are unable to afford lead hazard abatement work. Lead abatement can improve health outcomes for infants, children, and adults by reducing developmental disorders, attention deficit hyperactivity disorder-related behaviors (ADHD), anemia, hypertension, and kidney and brain damage.

 

The SEP proceeds will be spent on lead abatement for residential homes whose · owner/occupants have applied for lead abatement pursuant to the Lead Protection Program and are residing in Indiana.

 

In the event that Respondent does not complete the payment of the SEP within one (1) year of the Effective Date of this Agreed Order, the full amount of the civil penalty as stated in this paragraph, plus interest established by IC 24-4.6-1-101 on the remaining amount, less the portion of the civil penalty Respondent has already paid, will be due to IDEM within fifteen (15) days from Respondent's receipt of IDEM's notice to pay.

 

Interest, at the rate established by IC 24-4.6-1-10,1shall be calculated on the amount due from the date which is thirty (30) days aft.er the Effective Date of this Agreed Order until the full civil penalty is paid.

 

Payment for the SEP is payable by check to the "ISDH-Lead Trust Fund." The text “SEP- Residential lead abatement” and the Case Number of this action shall be included in the memo line of the check. The check shall be mailed to:

 

Cashier's Office

Indiana State Department of Health

PO Box 7236

Indianapolis, IN 46207

 

Respondent shall provide Complainant with documentation of payment to the ISDH-Lead Trust Fund within one (1) week of each monthly payment.

 

6.            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 4 above.

 

7.            Signatories to this Agreed Order certify that they are fully authorized to execute this Agreed Order and legally bind the party they represent.

 

8.            This Agreed Order shall apply to and be binding upon Respondent and all successors and assigns. Respondent shall provide a copy of this Agreed Order, if in force, to any subsequent owners, successors, or assigns before ownership rights are transferred.

 

9.            No change in ownership, corporate, or partnership status of Respondent shall in any way alter the Respondent's status or responsibilities under this Agreed Order.

 

10.         Respondent shall ensure that all contractors, firms, and other persons performing work under this Agreed Order comply with the terms of this Agreed Order.

 

11.         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.

 

12.         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 the obligation to comply with the requirements of any applicable permits or any applicable Federal or State laws or regulations.

 

13.         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 pen ties Respondent may incur as a result of Respondent's efforts to comply with this Agreed Order.

 

14.         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 violations specified in the NOV.

 

15.         Nothing in this Agreed Order shall prevent IDEM or anyone acting on its behalf from communicating with the U.S. Environmental Protection Agency (U.S. 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 U.S. EPA or any other agency or entity.

 

16.         This Agreed Order shall remain in effect until IDEM issues a Resolution of Case letter to Respondent.

 

TECHNICAL RECOMMENDATION:

RESPONDENT:

Department of Environmental Management

 

 

 

By: _________________________

By:  _________________________

 

Linda L. McClure, 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

__________________, 20_____.

 

 

For the Commissioner:

 

 

 

Signed on 1/10/2020

 

Peggy Dorsey,

 

Assistant Commissioner

 

Office of Land Quality