STATE OF INDIANA |
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BEFORE THE INDIANA DEPARTMENT OF |
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COUNTY OF MARION |
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ENVIRONMENTAL MANAGEMENT |
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COMMISSIONER OF THE DEPARTMENT |
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OF ENVIRONMENTAL MANAGEMENT, |
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Complainant, |
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Case No. 2019-26294-H |
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Oil Technology, Inc., |
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Respondent. |
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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.
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.
Respondents 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: |
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Department of Environmental
Management |
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By: _________________________ |
By: _________________________ |
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Linda L. McClure, Section Chief |
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Enforcement Section |
Printed: ______________________ |
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Office of Land Quality |
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Title: ________________________ |
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Date: __________________ |
Date: _______________________ |
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COUNSEL FOR RESPONDENT: |
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By: ________________________ |
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Date: ______________________ |
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APPROVED
AND ADOPTED BY THE INDIANA DEPARTMENT OF ENVIRONMENTAL |
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MANAGEMENT
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For
the Commissioner: |
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Signed
on 1/10/2020 |
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Peggy
Dorsey, |
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Assistant
Commissioner |
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Office
of Land Quality |
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