NOTICE OF VIOLATION

Via Certified Mail# _______________ To: Bernard Karle

President/Registered Agent

Karle Enviro-Organic Recycling, Inc.

R. R. # 6, Box 741

Crawfordsville, IN 47933

Case No. 2003-12707-S

Based on investigation by designated representatives of the Indiana Department of Environmental Management (IDEM) on December 13, 2002, Karle Enviro-Organic Recycling, Inc., caused a reportable spill at Mile marker 47, Interstate 65, in Seymour, Jackson County, Indiana (Site), was in violation of the following environmental statute and rule:

A. Pursuant to 327 IAC 2-6.1-7, any person who operates, controls or maintains any mode of transportation or facility from which a spill occurs shall, upon discovery of a reportable spill to the soil or surface waters of the state, contain the spill, if possible, to prevent additional spilled material from entering the waters of the state; undertake or cause others to undertake activities needed to accomplish a spill response; and as soon as possible, but within two hours of discovery, communicate a spill report to the Department of Environmental Management, Office of Environmental Response.

A reportable spill of waste syrup from a tanker truck, at the Site, occurred on or about December 12, 2002, and was not properly contained and/or responded to and/or reported by Karle Enviro-Organic Recycling, Inc., in violation of 327 IAC 2-6.1-7.

B. Pursuant to IC 13-30-2-1(1), no person may discharge, emit, cause, allow, or threaten to 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 or into any publicly owned treatment works in any form which causes or would cause pollution which violates or which would violate rules, standards, or discharge or emission requirements adopted by the appropriate board under the environmental management laws.

Karle Enviro-Organic Recycling, Inc. caused and/or allowed the discharge of waste syrup, a contaminant or waste, into the environment from the Site on or about December 12, 2002, in violation of 327 IAC 2-6.1-7, and thus violated IC 13-30-2-1(1).

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.

To discuss this matter further, please contact Craig Henry at 317/233-1136 within fifteen (15) days after receipt of this Notice to request a conference. If settlement is reached, an Agreed Order will be prepared and sent for review and signature.

For the Commissioner:

Date: _______________ Signed April 1, 2003

Felicia A. Robinson

Deputy Commissioner

for Legal Affairs

cc: Jackson County Health Dept.

Jackson County Public File, Spill file