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. 2019-26566-H
					)
OIL TECHNOLOGY, INC.,					)
					)
Respondent.					)

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 Indiana Code (“IC”) 13-30-3-3, entry into the terms of this Agreed Order does not constitute an admission of any violations 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 IC 13-13-1-1.

2. Respondent is Oil Technology, Inc. (“Respondent”), which owns and operates the Company with United States Environmental Protection Agency (“EPA”) ID No. INR000123976, located at 3210 Watling St., in East Chicago, Lake 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”) via Certified Mail to:

Oil Technology, Inc.

Attn: Gerald Piper, President and Registered Agent

1203 Sheffield Avenue

Dyer, Indiana 46311

5. Oil Technology, Inc. is a used oil processor located within ArcelorMittal Steel's Indiana Harbor East property. Used oil is received from ArcelorMittal Steel's Indiana Harbor East plant via underground piping. Used oil can also be delivered by vacuum trucks.

6. During an investigation including an inspection on October 7, 2019 conducted by a representative of IDEM, the following violations were found:

a. Pursuant to 329 Indiana Administrative Code (“IAC”) 13-7-5(c), containers and above ground tanks used to store or process used oil at processing and re-refining facilities must:

1) Be in good condition with no severe rusting, apparent defects, or deterioration; and

2) Not be leaking (with no visible leaks)

As noted during the inspection, used oil was visible on the outside of Tank 2. Four pipes encircle the tank, and oily sludge was visible around the pipe that was second from the top. This area also appeared to have the most visible areas of oily sludge. More areas where oil had seeped down the tank appeared as the pipe circled the tank southward. No active drips were observed; however, after a portion of sludge was cleared away, small bubbles were observed. There was also an area where a section of piping was severely rusted and broken.

On October 9, 2019, Respondent sent an email to the IDEM inspector stating repairs had been made to Tank 2. Photographs showing the pinhole holes in two (2) areas of the tank before repairs and after repairs, were also included.

b. Pursuant to 329 IAC 13-7-5(h), upon detection of a release of used oil to the environment an operator must perform the following clean up steps:

1) Stop the release.

2) Contain the released used oil.

3) Clean up and manage the released used oil and other materials.

4) If necessary, repair or replace any leaking used oil storage containers or tanks prior to returning them to service.

As noted during the inspection, oily sludge was observed within the west side of the secondary containment system around the pump house and Tank 2. Toward the upper portion of the tank, used oil was visible on the outside of the tank. One (1) to two (2) inches of oily sludge was noted in the secondary containment system. The grate of the middle landing of the staircase was also covered in oil. Oily sludge was visible around the pipe that was second from the top. This area also appeared to have the most visible areas of oily sludge. More areas where oil had seeped down the tank appeared as the pipe circled the tank southward.

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 rules listed in the findings of fact above.

3. Within thirty (30) days of the Effective Date, Respondent shall comply with 329 IAC 13-7-5(c). Specifically, Respondent shall have a professional integrity assessment done on Tank 2 and its associated piping, including non-destructive testing such as hydrostatic testing, radiographic testing, ultrasonic testing, acoustic emissions testing, or other testing that is appropriate to this situation.

4. Within forty-five (45) days of the Effective Date, Respondent shall submit written proof of the professional integrity assessment conducted on Tank 2 and its associated piping to IDEM.

5. Within thirty (30) days of the Effective Date, Respondent shall clean the entire secondary containment system including catwalks, stairs, tanks, piping, and concrete pad of all oil, oil residue, and oily sludge.

6. Within forty-five (45) days of the Effective Date, Respondent shall submit written proof including photographs of the secondary containment system being cleaned of all oil, oil residue, and oily sludge to IDEM.

7. Within thirty (30) days of the Effective Date, Respondent shall develop a Standard Operating Procedure (SOP) requiring documentation of daily or weekly inspections of the tanks and containment system.

8. Within forty-five (45) days of the Effective Date, Respondent shall submit a copy of the SOP requiring documentation of daily or weekly inspections of the tanks and containment system to IDEM.

9. Within thirty (30) days of the Effective Date, Respondent shall develop a SOP to prevent used oil from accumulating on any part of the facility including catwalks, stairs, and the secondary containment system.

10. Within forty-five (45) days of the Effective Date, Respondent shall submit a copy of the SOP to prevent used oil from accumulating on any part of the facility including catwalks, stairs, and the secondary containment system.

11. All submittals required by this Agreed Order, unless IDEM notifies the Respondent otherwise in writing, shall be sent to:

Jodi Pisula, Enforcement Case Manager

Office of Land Quality

Indiana Department of Environmental Management

100 North Senate Avenue

Indianapolis, IN 46204-2251

12. Pursuant to IC 13-30-4-1, Respondent is assessed and agrees to pay a civil penalty of One Thousand Five Hundred Dollars ($1,500.00). Said penalty amount shall be due and payable to the “Environmental Management Special Fund” in six (6) installment payments. The first installment of Two Hundred Fifty Dollars ($250.00) shall be paid within thirty (30) days of the Effective Date; the thirtieth day being the “Due Date.” Subsequent installments of Two Hundred Fifty Dollars ($250.00) shall be made every thirty (30) days thereafter.

13. In the event the terms and conditions of the following paragraphs are violated, Complainant may assess and Respondent shall pay stipulated penalties in the following amounts:

Paragraph	Stipulated Penalty
Order paragraph #3	$100.00 per week
Order paragraph #4	$100.00 per week
Order paragraph #5	$100.00 per week
Order paragraph #6	$100.00 per week
Order paragraph #7	$100.00 per week
Order paragraph #8	$100.00 per week
Order paragraph #9	$100.00 per week
Order paragraph #10	$100.00 per week

14. Stipulated penalties shall be due and payable no later than the thirtieth day after Respondent receives written notice that Complainant has determined a stipulated penalty is due; the thirtieth day being the “Due Date.” Complainant may notify Respondent at any time that a stipulated penalty is due. Failure to notify Respondent in writing in a timely manner of a stipulated penalty assessment shall not waive Complainant’s right to collect such stipulated penalty or preclude Complainant from seeking additional relief against Respondent for violation of this Agreed Order. Neither assessment nor payment of stipulated penalties shall preclude Complainant from seeking additional relief against Respondent for a violation of this Agreed Order; such additional relief includes any remedies or sanctions available pursuant to Indiana law, including, but not limited to, civil penalties pursuant to IC 13-30-4.

15. Civil and stipulated 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

Accounts Receivable

IGCN, Room 1340

100 North Senate Avenue

Indianapolis, IN 46204

16. 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 15, above.

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

18. 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.

19. 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.

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

21. 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.

22. 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.

23. 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.

24. 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.

25. 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.

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

TECHNICAL RECOMMENDATION:				RESPONDENT:
Department of Environmental Management				Oil Technology, Inc.
By:________________________				By: _________________________
	Linda 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 3/25/20______
				Peggy Dorsey, Assistant Commissioner
				Office of Land Quality