STATE OF
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BEFORE THE
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COUNTY OF
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ENVIRONMENTAL
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COMMISSIONER
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OF
ENVIRONMENTAL MANAGEMENT, |
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Complainant, |
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Case No. 2020-26962-U |
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JONES OIL COMPANY 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 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.
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 Jones Oil Company Inc.
(“Respondent”), which owns/operates the facility with an Underground Storage
Tank (“UST”) system with Facility ID No. 10148, located at 7320 U.S. Highway 50,
in Shoals, Martin County, Indiana (“Site”).
3. Respondent owns and/or operates (3) ten
thousand (10,000) gallon gasoline USTs installed in 1984, and one (1) ten
thousand (10,000) gallon and one (1) two thousand (2,000) gallon diesel USTs, each
installed in 1979. Each tank is steel
construction.
4. Owner as defined in IC
13-11-2-150(a)(1)(A) means, for an UST that was in use on November 8, 1984 or
brought into use after November 8, 1984 for the storage, use, or dispensing of
regulated substances, a person who owns the UST or the real property that is
the UST site, or both. According to the Martin County Assessor’s Office,
Respondent is the owner of the Site.
5. A Violation Letter was issued to
Respondent on December 4, 2019, which required a response within thirty (30) days
of receipt of the Violation Letter. Respondent failed to respond to the
Violation Letter.
6. IDEM has jurisdiction over the parties
and the subject matter of this action.
7.
Pursuant to IC 13-30-3-3, IDEM issued a Notice
of Violation (“NOV”) to:
Jones
Oil Company Inc. |
Attn:
Robert Derek Jones, President and Registered Agent |
P.O.
Box 60 |
Shoals,
IN 47581 |
8.
During an investigation including an inspection
on November 25, 2019 conducted by a representative of IDEM, the following
violations were found:
a. Pursuant to 329 IAC 9-2-2(c), the owner
of a UST system, UST, or tank shall submit a notification form to register the
UST system, UST, or tank to the department. An owner required to submit a
notification under this section shall provide:
(1) a
notification for each UST owned;
(2) complete
information required on the form for each UST owned; and
(3) if applicable, a separate notification
form for each separate place of operation at which the USTs are located.
As
noted during the inspection, Respondent failed to submit a notification to IDEM
providing complete information for each UST owned. Specifically, the most recent Notification Form
that was submitted to IDEM on November 14, 2016, indicated that both Auto
Shutoff Devices and Ball Float Valves are installed. The form also indicated
that European Suction piping is utilized for a kerosene tank, but the inspection
found only pressurized piping for the USTs. The kerosene tank was above ground
and not a UST as indicated. To date, a complete and
accurate notification has not been received by IDEM.
On
May 7, 2020, a complete and accurate notification form was received by the
Respondent.
b. Pursuant to 329 IAC 9-8-11(a) and (b):
(a) an owner or operator may satisfy the financial
responsibility requirements of section 4 of this rule by participation in the
excess liability trust fund under 328 IAC 1. Reimbursement from the fund is
determined by compliance with 328 IAC 1.
(b) An owner or operator of:
(1) twelve
(12) or fewer USTs shall demonstrate the ability to pay the applicable deductible
amount under IC 13-23-9-1.3; or
(2) more than
twelve (12) USTs shall demonstrate the ability to pay two (2) times the
applicable deductible amount under IC 13-23-9-1.3.
As noted
during the inspection, Respondent failed to demonstrate a current Financial
Responsibility mechanism. The Financial
Responsibility mechanism provided during the inspection was expired.
On February
25, 2020, a current Financial Responsibility mechanism in the form of a Loan
Commitment Letter dated October 15, 2019, was provided to IDEM via email.
c. Pursuant
to 40 CFR 280.21(b)(1)(ii), steel tanks must be upgraded to meet one of the
following requirements in accordance with a code of practice developed by a
nationally recognized association or independent testing laboratory: (ii)
Within 10 years after lining, and every 5 years thereafter, the lined tank is
internally inspected and found to be structurally sound with the lining still
performing in accordance with the original design specifications. If the internal
lining is no longer performing in accordance with the original design
specifications and cannot be repaired in accordance with a code of practice
developed by a nationally recognized association or independent testing
laboratory, then the lined tank must be permanently closed in accordance with
subpart G of this part.
As noted
during the inspection, Respondent failed to have the lined tanks internally
inspected every 5 years. The most recent
inspection of the internal liners occurred on October 17, 2014.
On February
25, 2020, documentation was provided to IDEM via email documenting that tank
liner inspections were conducted between 12/02/19-12/04/19.
d. Pursuant to
40 CFR Part 280.20(c)(1)(i), except as provided in
paragraphs (c)(2) and (3) of this section, to prevent spilling and overfilling
associated with product transfer to the UST system, owners and operators must
use spill prevention equipment that will prevent release of product to the
environment when the transfer hose is detached from the fill pipe (for example,
a spill catchment basin).
As
noted during the inspection, Respondent failed to provide adequate spill
prevention equipment. Specifically, both the Ag Diesel and Diesel spill buckets were
more than half full of fuel and would not prevent a release into the
environment.
On
February 25, 2020, a disposal receipt from 01/07/20 was provided to IDEM via
email documenting the disposal of the fuel that had been accumulating in the
spill buckets.
e. Pursuant to 40 CFR 280.43(d), equipment for automatic tank
gauging that tests for the loss of product and conducts inventory control must
meet the following
requirements:
(1) The
automatic product level monitor test can detect a 0.2 gallon per hour leak rate
from any portion of the tank that routinely contains product;
(2) The
automatic tank gauging equipment must meet the inventory control (or other test
of equivalent performance) requirements of § 280.43(a); and
(3) The test
must be performed with the system operating in one of the following modes:
(i) In-tank static testing conducted at least once every 30
days; or
(ii) Continuous
in-tank leak detection operating on an uninterrupted basis or operating within
a process that allows the system to gather incremental measurements to
determine the leak status of the tank at least once every 30 days.
As
noted during the inspection, Respondent failed to perform proper Automatic Tank
Gauging (ATG) as required. Specifically,
the ATG printouts have tank capacity
calculations that indicate the ATG system is not programmed properly.
On May 20, 2020, Respondent provided an email from Gary
Marquis, representative from Veeder Root, the tank manufacturer, indicating
that the ATG system was programmed properly.
9. 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.
All submittals required by this Agreed Order,
unless Respondent is notified otherwise in writing by IDEM, shall be sent to:
Debbie Chesterson, Enforcement Case
Manager |
Office of Land Quality |
Indiana Department of Environmental
Management |
100 North Senate Avenue |
Indianapolis, IN 46204-2251 |
4.
Respondent is assessed and agrees to pay a
civil penalty of Four Thousand Four Hundred Forty Dollars ($4,440). Said penalty amount shall be due and payable
to the “Underground Petroleum Storage Tank Trust Fund” within thirty (30) days
of the Effective Date; the 30th day being the “Due Date.”
5.
Civil penalties are payable by check to the
“Underground Petroleum Storage Tank Trust 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 |
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 5, 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 penalties 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 |
Southern
Indiana Development Partners, LLC |
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By: _________________________ |
By:
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Jennifer
Reno, 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
THIS |
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DAY OF |
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For the
Commissioner: |
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Signed on
09/02/20 |
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Peggy Dorsey, Assistant Commissioner |
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Office of
Land Quality |
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