STATE OF INDIANA ) BEFORE THE INDIANA DEPARTMENT
) SS: OF ENVIRONMENTAL MANAGEMENT
COUNTY OF MARION )
COMMISSIONER OF THE DEPARTMENT )
OF ENVIRONMENTAL MANAGEMENT, )
)
Complainant, )
) CAUSE NO. A-2140, A-
2448, A- ) 2474, A-2519, A-
2528, A-2529, A- ) 2577, A-
2578, A-2579, A-2589, A- ) 2622,
A-2793, A-3040, A-3049, & )
A-3337
v. )
)
LTV STEEL COMPANY, INC. )
)
Respondent. )
The Commissioner of the Indiana Department of Environmental Management
(hereinafter referred to as "Complainant") and LTV Steel Company, Inc. (hereinafter referred
to as "Respondent"), being desirous of settling and compromising this action without hearing
or adjudication of any issue of fact or law, and without any admissions of liability as to any
matter referred to herein, hereby consent to the entry of the following Findings of Fact and
Order set forth below.
1. Complainant is the Commissioner of the Indiana Department of Environmental
Management (hereinafter referred to as "IDEM"), a department of the State of Indiana created
by IC 13-13-1-1.
2. Complainant has jurisdiction over the Respondent and the subject matter of this action.
4. Rule 326 IAC 5-1-2(2)(A) provides that visible emissions from sources in
nonattainment areas for particulate matter shall not exceed an average of thirty percent (30%)
opacity in twenty-four consecutive readings. Since July 1, 1993, Rule 326 IAC 5-1-2(2)(B)
mandates that visible emissions from sources located in Lake County, Indiana
shall not exceed an average of twenty percent (20%) opacity in twenty-four consecutive
readings.
5. Complainant alleges that an inspector from IDEM's Office of Air Management
observed the visible emissions from Respondent's Basic Oxygen Furnace (hereinafter referred
to as "BOF") main stack to be 51.9%, 46.2%, 83.8% and 61.2% on March 13, 1992, June 1,
1992, October 12, 1992 and July 13, 1993, respectively. Complainant further alleges that
these readings violate 326 IAC 5-1-2(2)(A) and 326 IAC 5-1-2(2)(B), respectively.
6. Complainant alleges that on January 20, 1994, an IDEM inspector observed an
opacity reading of 42.1% at Respondent's H4 Blast Furnace roof monitor. On January 24,
1994, the inspector observed sixteen (16) different opacity readings ranging from 36.5% to
92.5% at the H4 Blast Furnace roof monitor. Complainant further alleges that these opacity
readings violate 326 IAC 5-1-2(2)(B).
7. 326 IAC 6-1-10.1(e) limits Respondent's BOF's main stack and roof monitor to
twenty percent (20%) opacity for 6 minute and 3 minute averages, respectively.
8. Complainant alleges that continuous opacity monitor reports submitted by the
Respondent for the BOF's main stack indicate that the main stack was in violation of 326 IAC
6-1-10.1(e) for the following quarters for the indicated percentages of time: 4th quarter, 1993
for 7.5% of the time; 1st Quarter, 1994 for 10.8% of the time; 2nd Quarter, 1994 for 4.54%
of the time; 3rd Quarter, 1994 for 8.54% of the time; 4th Quarter, 1994 for 11.5% of the
time; and 1st Quarter, 1995 for 6.82% of the time.
9. Complainant alleges that on March 13, 1994, an IDEM inspector observed
opacity readings of 54.2%, 38.1%, 39.6% and 32.3% at the BOF roof monitor, thereby
violating 326 IAC 6-1-10.1(e).
10. Complainant alleges that on March 16 and 21, 1994, an IDEM inspector
observed opacity readings of 33.3% and 30%, respectively, at the BOF roof monitor, thereby
violating 326 IAC 6-1-10.1(e).
11. Complainant alleges that on April 5, 1994, an IDEM inspector observed nine (9) opacity readings ranging from 23.8% to 50% at the BOF roof monitor, thereby violating
326 IAC 6-1-10.1(e).
12. Complainant alleges that on April 20 and 22, 1994, an IDEM inspector
observed opacity readings from 31.3% to 67.5% at the BOF roof monitor, thereby violating
326 IAC 6-1-10.1(e).
13. Complainant alleges that on May 23, 1994, while visiting the BOF, an IDEM
inspector observed two (2) opacity readings from the roof monitor of 35.4% and 39.2%,
thereby violating 326 IAC 6-1-10.1(e).
14. Complainant alleges that on June 21, 1994, the IDEM inspector observed six (6)
opacity readings from the BOF roof monitor ranging from 31.3% to 67.5%, thereby violating
326 IAC 6-1-10.1(e).
15. Complainant alleges that on September 6, 1994, an IDEM inspector observed
four (4) opacity readings at the BOF roof monitor ranging from 28.8% to 51.3%, thereby
violating 326 IAC 6-1-10.1(e).
16. In January, 1994, Respondent completed upgrades on the H4 Blast Furnace's
baghouse in order to improve the control of particulate matter.
17. In April, 1995, Respondent completed upgrades on four chambers of the BOF's
electrostatic precipitator. Upgrading four of the eight chambers significantly improved control
of particulate matter emissions and resulted in fewer excursions in opacity at the continuous
opacity monitor.
18. Respondent recognizes and acknowledges that the presence of substantial
amounts of zinc in the steel scrap charged to the BOF vessels can result in particulate
emissions in such quantities as to cause the visible emission standards at the BOF main stack
and/or roof monitor to be exceeded. Efforts by the Respondent to limit zinc content in the
melts at the BOF have reduced visible emission excursions.
19. This Agreed Order resolves all violations through the Effective Date of this
Order to the extent such violations occurred at Respondent's East Chicago integrated steel mill
and of rules 326 IAC 5-1-2(2)(A), 326 IAC 5-1-2(2)(B) and rule 326 IAC 6-1-10.1(e) to the
extent such violations occurred at H4 Blast Furnace roof monitor, the BOF's roof monitor and
the BOF's main stack. Respondent waives its right to issuance of a Notice of Violation and to
the settlement period of sixty (60) days as provided by IC 13-30-3-3 for all such violations.
20. In recognition of the settlement reached, Respondent waives any right to
administrative and judicial review of this Agreed Order and agrees not to contest the
jurisdiction of Complainant to enter into this Order.
WHEREFORE, based upon the Findings of Fact and upon the consent of the parties, it
is hereby ORDERED that:
1. Respondent shall exercise at the BOF practices and procedures consistent with
its Continuous Compliance Plan (326 IAC 6-1-10-1 (s)) for the purpose of complying with
applicable visible emission standards.
2. Respondent shall continuously operate at a minimum, seven (7) chambers of the
BOF's electrostatic precipitator for particulate matter removal. Preventive maintenance
measures shall be conducted in accordance with Respondent's existing Continuous Compliance
Plan.
3. (a) Beginning July 1, 1997, Respondent shall provide certified visible
emission reader(s), who may be employees of Respondent or independent contractors, to self-
monitor the BOF roof monitor(s) for compliance with the following standard:
The visible emissions shall not exceed twenty percent (20%) for a three (3) minute
average. (326 IAC 6-1-10.1(e))
(b) Observations shall be made a minimum of three (3) hours per day, three
(3) days per week. These observations shall be made at random times. The observations shall
be made in accordance with U.S. EPA Reference Method 9, with the averaging periods of
three (3) minutes constituting discrete non-overlapping periods. Respondent shall calculate,
summarize and, within thirty (30) days after the end of the calendar quarter in which the
observations are made, submit to IDEM's Office of Air Management, Compliance Branch, a
report of the number of exceedances of the foregoing standard which occurred during the
calendar quarter. Copies of the results of the observations shall be maintained by Respondent
and shall be subject to inspection by IDEM's representatives.
(c) The following formula shall be used for the purpose of calculating the
monthly compliance percentage for the standard set forth in paragraph 3(a):
Percentage Compliance =
(Number of three-minute averages observed during a calendar month) -
(Number of three-minute averages exceeding the standard for the month) X 100
Number of three-minute averages observed during the calendar month
4. (a) Respondent shall submit to IDEM a work plan detailing steps to be taken by Respondent in the event the percentage compliance calculated pursuant to paragraph 3(c)
above is less than 95% in any calendar month. The work plan shall be submitted to
Complainant within thirty (30) days after the end of the calendar month for which the
percentage compliance was less than 95%.
(b) Respondent shall pay a daily stipulated penalty of One Thousand Dollars
($1,000) for each day that Respondent fails to submit the work plan after the required
submittal date.
5. (a) If, despite the implementation of the work plan referred to in paragraph
four (4) above, the percentage compliance calculated pursuant to paragraph 3(c) is less than
95% for a succeeding calendar month, Respondent shall submit to Complainant an
implementation plan for the installation of air pollution control equipment. The implementation
plan must be submitted by Respondent within thirty (30) days after the end of such succeeding
calendar month.
(b) Respondent shall pay a daily stipulated penalty of One Thousand Dollars
($1,000) for each day Respondent fails to submit the implementation plan after the required
submittal date.
6. So long as this Order is in effect, Respondent shall pay stipulated penalties for
the violations of the visible emission standard of paragraph 3(a) above in the manner provided
below in this paragraph. The first three self-monitored, three-minute excursions above the
visible emissions limit in paragraph 3(a) on any calendar day will be considered violations but
will not trigger stipulated penalties nor an enforcement action. However, in the event of a
fourth such self-monitored three-minute excursion on a calendar day, Respondent shall pay a
stipulated penalty in the amount of Three Thousand Five Hundred Dollars ($3,500). In the
event of a fifth such self-monitored three minute excursion on a calendar day, Respondent
shall pay an additional stipulated penalty in the amount of Three Thousand Five Hundred
Dollars ($3,500). No additional stipulated penalties shall be payable for such self-monitored
three-minute excursions in excess of five (5) on a calendar day and stipulated penalties shall
not apply for excursions which qualify as a malfunction under 326 IAC 1-2-39. Excursions
observed by qualified IDEM inspectors shall be reviewed in the quarterly meeting described in
paragraph seven (7) below. Excursions which do not qualify as a malfunction as defined in 326
IAC 1-2-39 shall subject Respondent to a stipulated penalty of Five Thousand Dollars ($5,000)
per occurrence. In no event shall the total stipulated penalties payable by Respondent for any
calendar day exceed Ten Thousand Dollars ($10,000), whether as a result of inspection by
Respondent alone, by IDEM alone or by both Respondent and IDEM. Any violation noted at
substantially the same time both by Respondent's self-monitoring and IDEM's inspectors shall
be considered a self-monitoring violation only.
7. IDEM and Respondent shall conduct compliance meetings once every calendar quarter while this Agreed Order is in effect, unless IDEM and Respondent mutually decide
that a compliance meeting for a particular quarter is not required.
8. Unless IDEM otherwise notifies Respondent in writing, all submittals
required by this Agreed Order shall be sent to:
Air Enforcement Section Chief
Office of Enforcement
Indiana Department of
Environmental Management
P.O. Box 6015
Indianapolis, Indiana 46206-6015
9. Respondent is assessed a Civil Penalty of Four Hundred Twenty-Six Thousand
Seven Hundred and Fifty dollars ($426,750). Said Penalty amount shall be due and payable to
the Environmental Management Special Fund within thirty (30) days of the Effective Date of
this Order, unless its payment is modified by a following paragraph.
10. Respondent has initiated and by June 1, 1998, shall have implemented the five
Supplemental Environmental Projects (hereinafter referred to as 'SEP's') which are attached
hereto as Exhibits A, B, C, D and E and are incorporated into and are a part of this Agreed
Order. The five SEPs involve (a) the gas shrouding of steel ladles during tapping at a cost of
approximately $220,000; (b) the installation of side enclosures on the No. 2 vessel at the BOF
to minimize tapping emissions at a cost of $175,000; (c) the extension of the hoods at the hot
metal station to provide for a greater capture of emissions during reloading at a cost of
$170,000 (d); the installation and operation of heat exchangers and evaporators at the tin
plating process for the purpose of reusing the spent chemical solutions at a cost of $89,600;
and (e) the installation and operation of an automatic chromium sampling system at the chrome
line with a cost of $56,100.
11. Within thirty (30) days after the effective date of this Order, the Respondent
shall pay a portion of the civil penalty stated in paragraph nine (9) above in the amount of
Eighty-Five Thousand Three Hundred and Fifty Dollars ($85,350). Upon completion of each
SEP, Respondent shall submit to IDEM documentation verifying date of completion and costs.
Timely and satisfactory completion of the Supplemental Environmental Projects shall cancel
the remaining $341,400 civil penalty. To the extent the Respondent does not complete the
Supplemental Environmental Projects by May 15, 1998, the corresponding amount of the
unspent credit plus interest as established by IC 24-4.6-1-101 shall be due by June 1, 1998.
12. (a) "Force Majeure" for purposes of this Agreed Order, is defined as any event arising from causes beyond the control of the Respondent that delays or prevents the performance of any obligation under this Agreed Order despite Respondent's best efforts to
fulfill the obligation. The requirement that the Respondent exercise "best efforts to fulfill the
obligation" includes using best efforts to anticipate any potential force majeure event and best
efforts to address the effects of any potential force majeure event (1) as it is occurring and (2)
following the potential force majeure event, such that the delay is minimized to the greatest
extent possible. "Force Majeure" does not include financial inability to complete the work
required by this Agreed Order or increases in cost to perform the work.
(b) The Respondent shall notify IDEM by calling within three (3) calendar days and by
writing no later than seven (7) calendar days after any event which the Respondent contends is
a force majeure. Such notification shall describe the anticipated length of the delay, the cause
or causes of the delay, the measures taken or to be taken by the Respondent to minimize the
delay, and the timetable by which these measures will be implemented. The Respondent shall
include with any notice all available documentation supporting their claim that the delay was
attributable to a force majeure. Failure to comply with the above requirements shall preclude
Respondent from asserting any claim of force majeure for that event. The Respondent shall
have the burden of demonstrating that the event is force majeure. The decision of whether an
event is a force majeure shall be made by IDEM. Said decision shall be communicated to the
Respondent.
(c) If a delay is attributable to a force majeure, IDEM shall extend, in writing, the time
period for performance under this Agreed Order, by the amount of time that is attributable to
the event constituting the force majeure or may, if the obligation has been prevented, excuse
the performance of the obligation.
13. Civil and stipulated penalties are payable by check to the Environmental
Management Special Fund. Checks shall include the Cause Number and shall be mailed to:
Cashier
IDEM
100 North Senate
P.O. Box 7060
Indianapolis, Indiana 46206-7060
14. In the event that the civil penalty required by paragraph nine (9) is not paid
within thirty (30) days of the Effective Date of this Agreed Order or the payment of the
stipulated penalties assessed pursuant to paragraphs four (4), five (5) and six (6) are not made
within thirty (30) days of Respondent's receipt of IDEM's demand, Respondent shall pay
interest on the unpaid balance at the rate established by IC 24-4.6-1-101. The interest shall
begin to accrue on the date the civil penalty or stipulated penalty is due until the full civil
penalty is paid.
15. This Agreed Order shall apply to and be binding upon the Respondent, its
officers, directors, principals, agents, successors, subsidiaries, legal representatives and
assigns. The Respondent's signatories to this Agreed Order certify that they are fully
authorized to execute this Agreed Order and legally bind Respondent. No change in
ownership, corporate, or partnership status of the Respondent shall in any way alter its status
or responsibilities under this Order.
16. The Respondent shall provide a copy of this Order, if in force, to any
subsequent owners or successors of the facilities to which the Agreed Order relates before
ownership rights are transferred.
17. The Effective Date of this Agreed Order shall be July 1, 1997 and it shall
terminate when the percentage compliance calculated pursuant to paragraph 3(c) above is 95%
or greater for twelve (12) consecutive months, provided, however, that if paragraph five (5) of
the Order is implemented, the Agreed Order shall remain in effect until Respondent's
obligations under paragraph five (5) are concluded.
TECHNICAL RECOMMENDATION: RESPONDENT
Department of Environmental LTV Steel Company, Inc.
Management
By: By:
Acting Air Section Chief
Office of Enforcement Printed:
Title:
Date:
Date:
COUNSEL FOR COMPLAINANT COUNSEL FOR RESPONDENT
Department of Environmental
Management
By: By:
Office of Legal Counsel
Date:
Date:
APPROVED AND ADOPTED BY THE INDIANA DEPARTMENT OF ENVIRONMENTAL MANAGEMENT
THIS DAY OF , 199 .
FOR THE COMMISSIONER
Signed on June 13, 1997
Patrick Carroll, Director
Office of Enforcement
Converted by Andrew Scriven