NOTICE OF VIOLATION

Via Certified Mail #

To: Keith E. Busse, President and Registered Agent

Steel Dynamics Holdings, Inc.

4500 County Road 59

Butler, Indiana 46721

Case No. 2001-10506-H

Based on investigations by designated representatives of the Indiana Department of Environmental Management (IDEM) on December 29, 2000, and February 12, 2001, Steel Dynamics Holdings, Inc., U.S. EPA ID number INR 000001099, located at 4500 County Road 59, Butler, was in violation of the following environmental rules:

Article 3.1 of Title 329 incorporates many of the federal hazardous waste management standards found in 40 CFR 260 through 40 CFR 273.

a. Pursuant to 40 CFR 262.11, a person who generates a solid waste must determine if that waste is hazardous. This facility did not make hazardous waste determinations on various sludge pit solids generated throughout the facility and on baghouse dust from the submerged arc furnace.

b. Pursuant to 40 CFR 262.34(a)(4) referencing 40 CFR 265.31 and/or IC 13-30-2-1(1) facilities must be maintained and operated to minimize the possibility of a fire, explosion, or any unplanned sudden or non-sudden release of hazardous waste to the air, soil, or surface water, which could threaten human health or the environment. No person shall 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. This facility allowed contaminants into the environment, including baghouse dust (K061) from the EAF, drop-out material from the EAF, and baghouse dust from the submerged arc furnace and rotary hearth furnace. This facility failed to properly manage K061 hazardous waste to minimize the possibility of a release of hazardous waste to the environment.

c. Pursuant to 40 CFR 262.34(a)(4) referencing 40 CFR 265.52, a facility’s contingency plan must include certain information. This facility's contingency plan did not include all of the required information.

d. Pursuant to IC 13-30-2-1(14), no person shall apply or allow the application of used oil to any ground surface, except for purposes of treatment in accordance with a permit issued by the department. This facility allowed a release of used oil to a large area of soil at the Mill side area of the plant.

e. Pursuant to 329 IAC 13-4-3(e), upon detection of a release of used oil to the environment, a generator must perform the clean-up steps as listed in this rule. This facility failed to perform the clean-up steps as required by the rule upon the release of used oil to a large area of soil at the Mill side area of the plant.

f. Pursuant to 40 CFR 262.34 (a)(1)(ii) referencing 40 CFR 265, Subpart J, a generator may accumulate hazardous waste in tanks on-site for ninety (90) days or less without a permit or without having interim status provided that the generator complies with the requirements of 40 CFR 265, Subpart J. This facility failed to comply with the requirements of 40 CFR 265, Subpart J, for the decontamination pit which was being used to accumulate K061 hazardous waste.

g. Pursuant to 40 CFR 262.34(a)(1)(ii) referencing 40 CFR 265.192(a), a generator with a new tank system must have an integrity assessment certified by an independent, qualified, registered, professional engineer in accordance with 40 CFR 270.11(d), attesting that the system has sufficient structural integrity. This facility did not provide the required integrity assessment for tanks at the facility.

In accordance with IC 13-30-3-3, the Commissioner is required to notify an alleged violator in writing that a violation may exist and offer an opportunity to enter into an Agreed Order providing for the actions required to correct the violations and for the payment of a civil penalty. The Commissioner is not required to extend this offer for more than sixty (60) days.

Entering into an Agreed Order will prevent the issuance of a Notice and Order of the Commissioner under IC 13-30-3-4, or the filing of a civil court action under IC 13-14-2-6. IDEM encourages settlement by Agreed Order, thereby saving time and resources. Timely settlement by Agreed Order may result in a reduced civil penalty. Settlement discussions will also allow the opportunity to present any mitigating factors that may be relevant to the violations. In addition, as provided in IC 13-30-3-3, an alleged violator may enter into an Agreed Order without admitting that the violation occurred.

If settlement is not reached within sixty (60) days of receipt of this Notice of Violation, the Commissioner may issue a Notice and Order containing the actions that must be taken to achieve compliance, the required time frames, and an appropriate civil penalty. Pursuant to IC 13-30-4-1, the Commissioner may assess penalties of up to $25,000 per day for each violation.

Please contact Ms. Brenda Lepter at 317/233-5971 within fifteen (15) days after receipt of this Notice regarding your intent to settle this matter.

For the Commissioner:

Signed on July 26, 2001

Date: _______________ _________________________

Felicia A. Robinson

Assistant Commissioner

Office of Enforcement

cc: DeKalb County Health Department (w/enclosure)

Office of Legal Counsel (w/enclosure)

Ms. Nancy Johnston, Office of Enforcement (w/enclosure)

Ms. Theresa Pichtel, Office of Land Quality (w/enclosure)

Mr. Terry Coleman, Northern Regional Office (w/enclosure)

OLQ 1B2 File (w/enclosure)

http://www.state.in.us/idem