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Objection to the LUST No. 199605528, Facility ID No. 8754
Fred’s Service and Repair
Tipton,
2010 OEA 75, (07-W-J-4022)
[2010 OEA 7= 5, page 75 begins]
OFFICIAL SHORT CITATION NAME: = When referring to 2010 OEA 75, cite this case as
&=
nbsp; Fred’s
Service and Repair, 2010 OEA 75.
TOPICS:
Leaking Unde=
rground
Storage Tank (LUST)
No Further A=
ction
Letter
closure
monitored na=
tural
attenuation
Well Head Pr=
otection
Area
municipal dr=
inking
water well
well head
time of trav=
el
petroleum re=
lease
tank removal=
remediation<= o:p>
delineation<= o:p>
groundwater =
flow
Oxygen Relea=
se
Compound
Further Site
Investigation (FSI)
groundwater =
plume
sand seams
roadway
corrective a=
ction
benzene
Initial Site
Characterization (ISC)
Corrective A=
ction
Plan (CAP)
quarterly mo=
nitoring
report
Risk Integra=
ted
System of Closure (RISC)
Industrial D=
efault
Closure Level
Residential =
Default
Closure Level
1994 UST Bra=
nch
Guidance Manual
I.C. §
13-12-3-2
I.C. §
13-25-5-8.5
329 IAC 9-5-=
6
329 IAC 9-5-=
7
PRESIDING JUDGE:
Mary L. Davidsen
PARTY REPRESENTATIVES:
IDEM: &=
nbsp; April
D. Lashbrook, Esq.
Petitioner:  = ; Glenn D. Bowman, Esq., Nicholas K. Gahl, Esq.; Stewart & Irwin, P.C.
ORDER ISSUED:
June 29, 2010
INDEX CATEGORY:
Water
FURTHER CASE ACTIVITY:
[none]
[2010 OEA 7= 5, page 76 begins]
STATE OF &=
nbsp; ) &=
nbsp; &nbs=
p; BEFORE
THE
&nbs= p; &= nbsp; &nbs= p; &= nbsp; ) SS: &nbs= p; ENVIRONMENT= AL ADJUDICATION
IN THE MATTER OF: &= nbsp; &nbs= p; &= nbsp; )
&n=
bsp;  =
; &n=
bsp;
FRED’S SERVICE AND = REPAIR &= nbsp; ) &= nbsp;
Tipton,
lust
no. 199605528 /fid no. 8754 &nbs=
p; )
TIPTON,
FINDINGS OF FACT, CONCL=
USIONS
OF LAW and FINAL ORDER
<=
/span>Fred
Henry, Fred’s Service and Repair (“Fred’s), a gas station
facility in
FINDINGS OF FACT
1.&n=
bsp;
Fred’s Service and Repair is a gas station at=
2.&n=
bsp;
Directly to the south of the Fred Henry Site, at
3. =
Directly to the east of the Fred Henry Site,=
at
4.&n= bsp; Petroleum releases have occurred at all three sites.
5.&n= bsp; The Pizza Shack Site release achieved closure, per = the No Further Action Letter (“NFA”) issued by IDEM on September 8, 2005. Fred Henry Petition,= Ex. I.&nbs= p;
[2010 OEA 7= 5, page 77 begins]
6.&n= bsp; The Bob-A-Lu Site was delineated and is undergoing monitored natural attenuation. Eric Schuemann (previous IDEM Project Manager) Dep., p. 52-55.
7.&n=
bsp;
The Sites are within a Well Head Protection Area; t=
he
City of
8.&n= bsp; In May, 1996, when tanks were removed from the Fred Henry Site, a release of petroleum was discovered and assigned Release No. 199605031. Fred Henry Petition, p. 2.&nbs= p; On August 16, 1996, Fred Henry submitted an Underground Storage Tank (“UST”) Closure Report to IDEM. Fred Henry Ex. 4. In December,= 1996, Fred Henry submitted its Initial Site Characterization (“ISC”). Fred Henry Ex. 5. On December 21, 2000, IDEM request= ed that Fred Henry submit a Further Site Investigation. Fred Henry Petition, = Ex. B; Fred Henry Ex. 6. On Janu= ary 18, 2001, Fred Henry submitted its FSI, in response to IDEM’s request. Fred Henry Ex. 9.
9.&n= bsp; In August and September, 2002, USTs and soil were removed from the Pizza Shack Site. <= /span>Fred Henry Exs. 35-43.
10.&= nbsp; In September, 2002, additional USTs were removed fr= om the Fred Henry Site. Fred Henry Ex. 10.
11.&= nbsp; On December 17, 2002, Pizza Shack requested a No Further Action letter from IDEM. Fred Henry Ex. 23.
12.&= nbsp; On January 14, 2003, additional USTs were removed f= rom the Fred Henry Site. Fred Henry Ex. 7.
13.&= nbsp; Further cleanup activity occurred on the Pizza Shack Site. Specifically:
a.&n= bsp; On February 23, 2003, IDEM State Cleanup responded = to Pizza Shack’s December 17, 2002 request for a No Further Action lette= r by informing Pizza Shack that additional investigation was necessary. Fred Henry Ex. 24.
b.&n= bsp; On May 9, 2003, Pizza Shack responded to IDEM with additional information. Fred Henry Ex. 11.
c.&n= bsp; On June 9, 2003, IDEM wrote to Pizza Shack in respo= nse, requesting further investigation. = span>Fred Henry Ex. 28.
d.&n= bsp; On July 9, 2003, Pizza Shack reported additional investigatory activities to IDEM. = span>Fred Henry Ex. 29.
[2010 OEA 7= 5, page 78 begins]
e.&n= bsp; On August 29, 2003, IDEM issued its determination t= hat Pizza Shack should consider active remediation strategies for the following reasons: the groundwater flow direction, the Site is within a Well Head Protection Area, and the remaining on-Site contamination. Fred Henry Ex. 32.
f.&n= bsp; On September 10, 2003, IDEM confirmed that Pizza Sh= ack was to use Oxygen Release Compound (“ORC”) along the Site’= ;s northern border and through the utility corridor in the center of the Site. Fred Henry Ex.33.
g.&n= bsp; In October, 2003, Pizza Shack conducted ORC injection. Fred Henry Ex. 34.
14.&=
nbsp;
On January 6, 2004, IDEM made its second request for
Further Site Investigation to Fred Henry.&=
nbsp;
Fred Henry Exs. C and 8.=
15.&= nbsp; On January 7, 2004, Pizza Shack submitted its first quarterly monitoring report to IDEM. Fred Henry Ex. 35. On January 9, 2004, Pizza Shack submitted an addendum to its ORC Injection Activities. Fred Henry Ex. 34.
16.&=
nbsp;
On February 19, 2004, Fred Henry submitted a Further
Site Investigation. Fred Henry Pet., Ex. D. In April, 2004, Fred Henry removed=
5,000
cubic yards (or 7,400 tons) of soil from its Site, and approximately 37,300
gallons of water were pumped and disposed.=
Fred Henry Ex. 10. The top 9-11 feet of soil were rem=
oved
from the entire site.
17.&= nbsp; The Pizza Shack Site has discontinuous water-bearing sand seams, indicating no continuous groundwater plume across the property. Gehlbach testimony. Groundwater flows generally to= the southeast; but there is flow toward the northwest from the former Pizza Sha= ck UST toward the Fred Henry Site. Fred Henry Ex. 18; Jerry O’Calla= ghan (IDEM Project Manager) dep. p. 74; Gehlbach testimony.
18.&= nbsp; It is not reasonably possible to determine whether contamination on the Pizza Shack’s northern boundary was the residual effect from the Pizza Shack USTs or from off-site migration. O’Callaghan dep. p. 76. IDEM cannot determine definitively whether Pizza Shack or Fred Henry cause the impacts along the boundary between their properties. O’Callaghan dep. p. 44, p. 90.
19.&=
nbsp;
Remaining contamination from the Fred Henry Site is
under the roadway dividing the Fred Henry Site and the Pizza Shack Site. Schroer
dep. pp. 53, 54.
[2010 OEA 7= 5, page 79 begins]
20.&= nbsp; On August 25, 2004, Fred Henry, by Patriot Engineer= ing, submitted a report of on-site corrective action. Fred Henry Ex. 10. On Septembe= r 13, 2004, IDEM requested further investigation from Fred Henry. Fred Henry Ex. 11. On April 1,= 2005, Fred Henry submitted a Further Site Investigation. Fred Henry Pet. Ex. F and Ex. 12. On June 14, 2005, IDEM approved the Fred Henry Site Characterization and reque= sted a Corrective Action Plan (“CAP”). Fred Henry Pet. Ex. G and Ex. 13.
21.&=
nbsp;
On August 2, 2005, Pizza Shack submitted its 8=
th
Quarterly Monitoring Report, which showed less than 16 µg/L (or parts=
per
billion, (“ppb”)) benzene in Monitoring Well (“MW”)=
3
over the previous two years. =
Fred Henry Ex. 36. MW-3 is north of Pizza Shack’=
;s
former UST pit and south of the Fred Henry property boundary.
22.&= nbsp; On October 31, 2005, Fred Henry submitted a Correct= ive Action Plan (“CAP”), approved by IDEM in February, 2006. Fred Henry Pet. Ex. H and Exs. 13, 14; Eric Schuemann (IDEM Project Manager for = the Fred Henry Leaking Underground Storage Tank Site) Dep., p. 70. The CAP detailed remediation actio= ns already performed on Site, including removal of USTs, soil excavation, groundwater and surface water disposal, and groundwater monitoring. Quarterly sampling results showed a downward trend in the amount of contamination. However, the November 1, 2006 quar= terly sampling results showed 140-170 ppb Benzene in MW-11 and MW-12, in the side= walk adjacent to and to the south of the Fred Henry Site. Fred Henry Ex. 12, 15; Pet. Ex. F. = span>
23.&= nbsp; On October 31, 2007, IDEM requested Further Site Investigation from Fred Henry, including a requirement stated by Kathleen M. Simonson, IDEM Environmental Project Manager, Leaking Underground Storage T= anks (“LUST”), that monitoring wells be placed on the Pizza Shack Si= te by Fred Henry. Veatch Testimony, Ex. C.
24.&= nbsp; Fred Henry conducted quarterly sampling and groundw= ater monitoring at the Fred Henry Site until 2007, but ceased when IDEM required= an expansion of groundwater monitoring to include offsite locations, specifically, the P= izza Shack Site. Fred Henry Amend. Pet., p. 5.&= nbsp; Fred Henry presented unrefuted testimony that it would be denied acc= ess to the Pizza Shack Site.
25.&= nbsp; On June 18, 2008, IDEM State Cleanup Section clarif= ied No Further Action as applying to Pizza Shack Site Release No. 2002-09014 and requested cooperation for Fred Henry’s investigation on Pizza Shack property. Fred Henry Ex.19.
[2010 OEA 7= 5, page 80 begins]
26.&=
nbsp; =
span>The
closure objectives for the Fred Henry Site are set by applying the 1994
Guidance and Risk Integrated System of Closure (“RISC”). RISC is applied by IDEM as a polic=
y with
respect to the applicability of risk assessments to gain closure. IDEM
Nonrule Policy Document W-0046; Veatch Testimony, IDEM Exs. A, B; Fred Henry
Ex. 14, p. 14-15; Schroer Dep. p. 97-98. For benzene, the Residential Defau=
lt
Closure Level in groundwater is 5 µ/L. IDEM
Ex. B, p A.1-10; p. A.1015. The Industrial Default Closure=
Level
is 52 µ/L.
27.&= nbsp; = span>On February 14, 2008, IDEM sent a Violation Letter to Fred Henry. Fred Henry Pet. Ex. M.  = ;IDEM’s Violation Letter requested additional down-gradient delineation, required quarterly groundwater sampling as provided as a condition of the approved C= AP, required an expanded investigation, and required a report to be filed by Ma= rch 17, 2008.
28.&= nbsp; = span>Fred Henry petitioned for administrative review on December 12, 2007, and filed = an Amended Petition for Administrative Review on February 21, 2008. The petitions initiated this administrative adjudicatory cause. In summary, Fred Henry sought review of IDEM’s decisions concerning its requirements for further site investigation and refusal to i= ssue a “no further action letter”.&= nbsp;
29.&= nbsp; = span>Pursuant to 315 IAC 1-3-1(a)(10) and with the agreement of the parties, testimony was pre-filed as follows: Petitio= ner Fred Henry pre-filed testimony on March 4, 2009; IDEM pre-filed testimony on April = 6, 2009. An evidentiary hearing = was conducted on May 21, 2009; witnesses were sworn and further evidence heard. The parties submitted Proposed Findings of Fact, Conclusions of Law and Orders on August 3, 2009.
CONCLUSIONS OF LAW
1.&n=
bsp;
The Indiana Department of Environmental Management
(“IDEM”) is charged with implementation and enforcement of 2.&n=
bsp;
This is a Final Order issued pursuant to I.C. §
4-21.4-3-27. Findings of Fact=
that
may be construed as Conclusions of Law and Conclusions of Law that may be
construed as Findings of Fact are so deemed. [2010 OEA 7=
5, page 81
begins] 3.&n=
bsp;
This Court must apply a de novo standard of
review to this proceeding when determining the facts at issue. 4.&n=
bsp;
OEA is required to base its factual findings on sub=
stantial
evidence. Huffman v. Office of Envt=
l.
Adjud., 811 N.E.2d 806, 809 (Ind. 2004)(appeal of OEA review of NPDES
permit); see also I.C. §
4-21.5-3-27(d). While the par=
ties
disputed whether IDEM’s issuance of the City of 5.&n=
bsp;
Petitioner Fred Henry’s timely filed Petition
(and Amended Petition) for Review is based on the assertions that IDEM̵=
7;s
decisions were in error concerning its demands for further site investigati=
on
and refusal to issue a “no further action letter”. Petitioner is “aggrieved or
adversely affected” by IDEM’s determination, per I.C. §
4-21.5-3-7, and qualify to seek administrative review before the OEA. Petitioner Fred Henry is not requi=
red to
conduct additional site investigation. 6.&n=
bsp;
329 IAC
9-5-6(a)(1)(2) and (5) provide that further investigation of a release is
necessary if 1) previous information fails to define the nature and
extent of groundwater contamination; 2) if groundwater wells have been
affected; or 5) at the commissioner’s request, based on the potential
effects of the contaminated groundwater on nearby groundwater resources. [2010 OEA 7=
5, page 82
begins] 7.&n=
bsp;
The environmental sampling data and evidence submit=
ted
in the form of testimony demonstrates that the nature and extent of soil and
groundwater contamination related to the release on the Fred Henry Site has
been fully characterized as to nature and extent, as required in 329 IAC
9-5-6(a)(1). However, Fred Henry’s November 1, 2006 quarterly sampling
results showed 140-170 ppb Benzene in MW-11 and MW-12, in the sidewalk adja=
cent
to and to the south of the Fred Henry Site. 8.&n=
bsp;
The November 1, 2006 reports of benzene occurred wi=
thin
a Well Head Protection Area, approximately 200 meters from the well head wh=
ere
the City of 9.&n=
bsp;
IDEM’s 1994 UST Branch Guidance Manual, and R=
ISC
guidelines provide guidance for IDEM to exercise its discretion to specific=
site
facts in order to determine whether additional investigation is necessary a=
nd
whether a site can be closed. The
goal of RISC is to “establish cost-effective closure standards and
closure options that result in negligible risk to human health and the envi=
ronment. The RISC system is designed to pro=
vide
IDEM staff, industry and consultants with a consistent, but flexible, frame=
work
for achieving closure of contaminated sites. It has expanded the number of clos=
ure
options by allowing methods that prevent people from coming into contact wi=
th
contamination when clean up is not technically feasible. All of these goals help IDEM achie=
ve
cost-effective closure that wisely use government’s limited resources=
: Introduction
to RISC, IDEM Nonrule Policy Document W-0046. 10.&=
nbsp; IDEM’s
1994 UST Branch Guidance Manual provides recommendations of contamination
concentrations for a site to gain closure.=
IDEM uses its discretion in applying this guidance document to
site-specific facts to determine whether further investigation is needed and
whether a site is eligible for closure.&nb=
sp;
[2010 OEA 7=
5, page 83
begins] 11.&=
nbsp; Even
though contamination at the south boundary of the Fred Henry Site is not fu=
lly
delineated and is at a significant level, the contamination has comingled w=
ith
contamination from the Pizza Shack release. The contamination cannot be
isolated either to Fred Henry or Pizza Shack. The environmental sampling data and
evidence submitted in this cause provide substantial evidence of Petitioner
Fred Henry’s compliance with its duty under applicable law to investi=
gate
and remediate contamination related to release from the Fred Henry Site. 12.&=
nbsp; Per
RISC, plume stability can be used for contamination extending underneath a
roadway, so long as institutional control is utilized. 13.&=
nbsp; Therefore,
by substantial evidence, Petitioner Fred Henry has satisfied the remediation
objectives outlined in I.C. § 13-25-5-8.5, IDEM’s 1994 UST Branch
Guidance Manual, and RISC guidelines.
14.&=
nbsp; Beyond
the November 1, 2006 benzene level detection, the evidence presented in this
cause does not state that IDEM modified or rescinded its previous approval =
of
the site characterization. In=
stead,
IDEM required Further Site Investigation. 15.&=
nbsp; Requiring
additional investigation by Petitioner Fred Henry would not be in accordance
with applicable law, regulations or policy. 16.&=
nbsp; No
additional environmental investigation is required by Petitioner Fred Henry=
. IDEM is not required to
issue Petitioner Fred Henry a No Further Action Letter and is not required =
to
close the Fred Henry Site. 17.&=
nbsp; 329
IAC 9, et seq., states requirem=
ents
for site closure. 329 IAC 9-5=
-7(f)
states that corrective action conducted by the site owner must ensure that
ground water cleanup objectives comply with I.C. § 13-12-3-2. I.C. § 13-12-3-2 requires
groundwater remediation to be consistent with the remediation objectives st=
ated
in I.C. § 13-25-5-8.5. I=
.C.
§ 13-25-5-8.5 requires that remediation objectives be based on an
assessment of the risks posed by the contamination at the site, taking into=
consideration
the expected future use of the site, measurable risks to human health, natu=
ral
resources or the environment, based on the activities that take place at the
site. The remediation levels
referenced by 329 IAC 9-5-7(f)(3) and I.C. § 13-25-5-8.5 are stated in=
the
1994 Guidance and RISC. If a =
site
is adequately characterized, and the level of contamination is below the
risk-based levels established by IDEM, additional action is not necessary to
protect human health or the environment.&n=
bsp;
[2010 OEA 7=
5, page 84
begins] 18.&=
nbsp; The
closure objectives for the Fred Henry Site are set by applying the 1994
Guidance and RISC. As of the =
most
recent groundwater sample submitted by Fred Henry on November 1, 2006, the
benzene contamination does not meet either the 1994 Guidance or RISC Reside=
ntial
or Industrial Default Closure Levels.
The Fred Henry Site November 1, 2006 quarterly sampling results of
140-170 ppb Benzene in MW-11 and MW-12, in the sidewalk adjacent to and to =
the
south of the Fred Henry Site, exceeded both the RISC Residential Default
Closure Level for groundwater of 5 µ/L, and the Industrial Default
Closure Level of 52 µ/L. By
substantial evidence, RISC remediation objectives have not yet been met, th=
us,
the Fred Henry Site is not eligible for closure. 19.&=
nbsp; The
CAP as approved by IDEM sufficiently addressed remediation objectives for t=
he
Fred Henry Site, per guidance provided by RISC and the 1994 UST Branch Guid=
ance
Manual. The Fred Henry Site C=
AP
provided for eight quarters of groundwater monitoring. When IDEM required Fred Henry to c=
onduct
monitoring at the Pizza Shack Site, a site where Fred Henry did not have
monitoring access, Fred Henry stopped its monitoring. Until the CAP is completed, and all
requirements of 329 IAC 9 are met, the Fred Henry Site is not eligible for =
closure. 20.&=
nbsp; By
substantial evidence, IDEM is not authorized to issue a No Further Action
letter for the Fred Henry Site.
FINAL ORDER  =
; AND
THE COURT, being duly advised by all of the foregoing, hereby FINDS AND ORDERS that Petitioner,=
Fred
Henry, Fred’s Service and Repair, has presented substantial evidence
required to meet its burden of showing that it lacks authority to conduct
additional Site investigation on a site not under its ownership and control,
the Pizza Shack Site. Petitio=
ner
Fred Henry has further presented substantial evidence required to meet its
burden of showing that further environmental investigation to delineate Site
contamination would not be in accordance with applicable law, regulations or
policy. Petitioners, Fred Hen=
ry,
Fred’s Service and Repair, did not provide substantial evidence requi=
red
to meet its burden of showing that the Site remediation measures have been
completed so that the Site is eligible for closure and for IDEM’s
issuance of a No Further Action letter.&nb=
sp;
 =
; IT
IS THEREFORE ORDERED, ADJUDGED AND DECREED that Petitioner, Fred Henry,
Fred’s Service and Repair’s Petition for Administrative Review =
is GRANTED as to the following issue=
: that Fred Henry, Fred’s Serv=
ice
and Repair, has investigated the contamination of Petitioner’s
release.  =
; IT
IS FURTHER ORDERED that Petitioner, Fred Henry, Fred’s Service and
Repair’s Petition for Administrative Review is DENIED as to requiring the Indiana Department of Environmental
Management to issue a No Further Action Letter to Petitioner, Fred Henry,
Fred’s Service and Repair.
This cause is DISMISSED. [2010 OEA 7=
5, page 85
begins] <=
/span>You
are further notified that pursuant to provisions of I.C. § 4-21.5-7-5, the Office of Environmental
Adjudication serves as the ultimate authority in administrative review of
decisions of the Commissioner of the Indiana Department of Environmental
Management. This is a Final O=
rder
subject to Judicial Review consistent with applicable provisions of I.C. &s=
ect;
4-21.5, et seq. Pursuant to I.C. § 4-21.5-5-5=
, a
Petition for Judicial Review of this Final Order is timely only if it is fi=
led
with a civil court of competent jurisdiction within thirty (30) days after =
the
date this notice is served.  =
; IT
IS SO ORDERED this 29th day of June, 2010 in Hon. Ma=
ry L.
Davidsen Chief
Environmental Law Judge [2010
OEA 75: end of decision] 2010
OEA 75 in .doc format 2010
OEA 75 in .pdf format
Objection to the LUST No. 199605528, Facility ID No. 8754
Fred’s Service and Repair
Tipton,
2010 OEA 75, (07-W-J-4022)