STATE OF INDIANA		)		BEFORE THE INDIANA DEPARTMENT
		)	SS:	OF ENVIRONMENTAL MANAGEMENT
COUNTY OF MARION		)
COMMISSIONER OF THE DEPARTMENT					)
OF ENVIRONMENTAL MANAGEMENT,					)
					)
	Complainant,				)
					)
	v.				)	Case No. 2003-12659-W
					)
indiana corrugated, inc.,					)
					)
	Respondent.				)

AGREED ORDER

The Complainant and the 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 IC 13-30-3-3, entry into the terms of this Agreed Order does not constitute an admission of any violation contained herein. The 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. The Complainant is the Commissioner (“Complainant”) of the Indiana Department of

Environmental Management, a department of the State of Indiana created by IC 13-13-1-1.

2. The Respondent is Indiana Corrugated, Inc. (“Respondent”), which owns and/or operates a corrugated box manufacturing facility and an ink printing operation (the “Site”). The ink printing operation produces wastewater containing a water-based black Flexographic-Hydrocorr II ink ("ink"), and solids at the Site. The wastewater was stored in 5-gallon buckets and pits under the printing presses, or sent to an ink splitter operation* prior to discharging from the Site. The Site is located at 311 East 9^th Street, Warren, Huntington County, Indiana.

3. The Indiana Department of Environmental Management (“IDEM”) has jurisdiction over the parties and subject matter of this action.

4. Pursuant to IC 13-30-3-3, on September 15, 2003, IDEM issued a Notice of Violation via Certified Mail to:

John W. Long, President and Registered Agent Indiana Corrugated, Inc. P. O. Box 305 311 East 9^th Street Warren, Indiana 46792

John W. Long, President and Registered Agent Indiana Corrugated, Inc. 655 Candlewood Drive Marion, Indiana 46952

5. Pursuant to 327 IAC 5-2-2, any discharge of pollutants into water of the state as a point source discharge, except for exclusions made in 327 IAC 5-2-4, is prohibited unless in conformity with a valid National Pollutant Discharge Elimination System (“NPDES”) permit obtained prior to discharge.

6. On April 10, 1999, the Huntington County Geographic Information Service (“GIS”) obtained aerial photographs of the Site, which showed the ink leaving the south side of the building, pooling and migrating to a ditch, which runs to a swale, and is then carried off-site to a wooded area at the northwest corner of the property, which runs to an unnamed ditch to Salamonie River, waters of the state. On May 7, 2002, representatives of IDEM conducted a spill investigation of a discharge of ink-laden wastewater from the Site to the same wooded area noted by Huntington County GIS on April 10, 1999, near the Site and into an unnamed ditch, which runs into Salamonie River, without a valid NPDES permit. Also during a follow-up inspection by representatives of IDEM on December 4, 2002, it was observed that an area of approximately four feet by six feet of pooled black water and ink-laden soil ran downstream of the pooled water on the south side of the building at the Site. The Respondent failed to obtain a valid NPDES permit prior to discharging into the waters of the state, in violation of 327 IAC 5-2-2.

7. 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.

8. A reportable spill containing the ink-laden wastewater from the Site occurred on or about May 7, 2002 and was not properly contained, and/or responded to, and/or reported by the Respondent, in violation of 327 IAC 2-6.1-7.

9. 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.

10. The Respondent caused and/or allowed the discharge of ink-laden wastewater, which is a contaminant or waste, into the environment from the Site on or about May 7, 2002, without performing a spill response, in violation of 327 IAC 2-6.1-7, and thus violating IC 13-30-2-1(1).

11. Pursuant to 327 IAC 2-1-6(a)(1), the following are minimum water quality conditions:

(1) All waters at all times and at all places, including the mixing zone, shall meet the minimum conditions of being free from substances, materials, floating debris, oil or scum attributable to municipal, industrial, agricultural, and other land use practices, or other discharges:

(A) that will settle to form putrescent or otherwise objectionable deposits;

(B) that are in amounts sufficient to be unsightly or deleterious;

(C) that produce color, visible oil sheen, odor, or other conditions in such degree as to create a nuisance;

(D) which are in amounts sufficient to be acutely toxic to, or to otherwise severely injure or kill aquatic life, other animals, plants or humans.

(E) which are in concentrations or combinations that will cause or contribute to the growth of aquatic plants or algae to such a degree as to create a nuisance, be unsightly, or otherwise impair the designated uses.

12. Pursuant to IC 13-30-2-1(1), a person may not 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.

13. Pursuant to IC 13-18-4-5, it is unlawful for any person to throw, run, drain, or otherwise dispose into any of the streams or waters of Indiana; or cause, permit, or suffer to be thrown, run, drained, allowed to seep, or otherwise disposed into any waters; any organic or inorganic matter that causes or contributes to a polluted condition of any waters, as determined by a rule of the board adopted under sections 1 and 3 of this chapter.

14. On May 7, 2002, during IDEM's spill investigation at the Respondent's Site, it was noted that ink-laden wastewater migrated off the Site. On December 4, 2002, IDEM's representatives conducted a follow-up inspection to IDEM's May 7, 2002 spill investigation. During the spill investigation and the follow up inspection, it was observed that the Respondent was discharging ink-laden wastewater into an unnamed ditch to Salamonie River, which caused or contributed to the contamination of the waters of the state, in violation of 327 IAC 2-1-6(a)(1), and thus violating IC 13-30-2-1(1) and IC 13-18-4-5.

15. Pursuant to 327 IAC 3-2-1, no person shall cause or allow the construction, installation, or modification of any water pollution treatment/control facility or sanitary sewer, without a valid construction permit issued by the commissioner.

16. Pursuant to 327 IAC 3-2-2(d), construction shall not commence until all necessary state approvals and permits are obtained.

17. On December 4, 2002, during an inspection of the Site, IDEM's representative observed that the Respondent had constructed the ink splitter, which was used as a wastewater treatment facility. The ink splitter was constructed without a valid construction permit, in violation of 327 IAC 3-2-1 and 327 IAC 3-2-2(d).

18. On or after May 7, 2002, during the spill clean up, the Respondent and/or its agent placed the ink-laden soil removed from the area of discharge upon the ground at the Site. On May 22, 2003, IDEM's representative observed that the ink-laden soil piles remained on the ground at the Site uncovered and without the use of proper berming techniques to prevent migration of the ink-laden soil piles to surface waters of the state, which continued to pose a threat to the environment during precipitation events.

19. Pursuant to IC 13-30-2-1(3), a person may not deposit any contaminants upon the land in a place and manner that creates or would create a pollution hazard that violates or would violate a rule adopted by one (1) of the boards. The Respondent caused and/or allowed a contaminant or solid waste to be deposited at the Site, in violation of 329 IAC 10-4-2 and 329 IAC 10-4-3, thus violating IC 13-30-2-1(3).

20. IDEM acknowledges that the ink-laden soil contains degraded remnants of soy-based ink and, therefore, is not hazardous waste, as defined by state or federal laws or regulations.

21. In recognition of the settlement reached, the Respondent 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 the Complainant or his delegate, and has been received by the Respondent. This Agreed Order shall have no force or effect until the Effective Date.

2. Immediately, upon the Effective Date, the Respondent shall submit documentation to IDEM that it has ceased discharge of wastewater, including but not limited to, the ink-laden wastewater and solids from its ink printing operation.

3. Within 30 days of the Effective Date, the Respondent shall develop and submit to IDEM, at the address in Paragraph 11 of this Agreed Order, a Spill Response Plan (“SRP”) for the Site. Attachment "A" of this Agreed Order outlines the elements that need to be included in a SRP.

4. Within 30 days of the Effective Date, the Respondent shall develop and submit to IDEM, at the address in Paragraph 11 of this Order, a Compliance Plan (“CP”) for IDEM approval. The CP shall include but, not be limited to, a schedule for the following:

(1) Documentation of the selected means of disposal of the wastewater, to assure future protection of water quality in accordance with 327 IAC 2-1-6(a);

(2) In the event that the means selected by the Respondent in Paragraph 4(1) above is considered to be a short-term measure, the Respondent shall describe its plan for implementation of a method for long term/routine proper disposal of wastewater generated at the Site in the CP; and

(3) Training of the Respondent’s employees to comply with the Clean Water Act and all applicable rules and statutes.

5. The CP is subject to the approval of IDEM. If IDEM deems the plan inadequate, a revised CP shall be submitted within 15 days of receipt of notice from IDEM of the inadequacies thereof. If, after submission of the revised document, IDEM still finds the document to be inadequate, then IDEM will request further modification of the CP as necessary to meet IDEM’s requirements. If the subsequently submitted modification of the CP does not meet IDEM’s approval, IDEM will suggest specific modifications to be made to the CP and require re-submittal by a specific date. If the IDEM-suggested modifications are not incorporated into the CP by the Respondent (or an alternative plan is not submitted by the Respondent) by the specified date or are not approved by IDEM, the Respondent will be subject to stipulated penalties, as described in Paragraph 13 below.

6. Upon receipt of written notification from IDEM, the Respondent shall immediately implement the approved plan and adhere to the milestone dates therein. The approved plan shall be incorporated into the Agreed Order and shall be deemed an enforceable part thereof.

7. The Respondent shall submit, to the IDEM Office of Enforcement, at the address in 11 of this Agreed Order, documentation of completion of approved CP milestones within 10 days after each milestone date.

8. IDEM has determined that the stockpiled soil may be used on-site as structural fill base under a crushed stone parking lot, as core material in a landscaping berm, or applied as a base for construction at the Site, provided that adequate vegetative cover has been established and/or that appropriate erosion control measures have been put into place to prevent off-site sedimentation of the ink-laden soil to waters of the State. If the ink-laden soil is used for landscaping berm, the berm shall be covered with topsoil at a depth that will support vegetation and then capped with mulch. All work shall be completed in accordance with the description and drawings submitted to IDEM within one year of the Effective Date.

9. Within 180 days of the Effective Date, the Respondent shall properly use the ink-laden soil as structural fill base under a crushed stone parking lot, as core material in a landscaping berm, or applied as a base for construction at the Site, provided that conditions in Paragraph 8 above are satisfied, or be subject to stipulated penalties in Paragraph 13 below.

10. Upon completion of the proposed use of the ink-laden soil as fill material, as stated in Paragraph 8, the Respondent shall submit documentation of use, which shall include but not be limited to, a written description of the construction practices, receipts for any contracted work or heavy equipment rental, and photographs.

11. All submittals required by this Agreed Order, unless notified otherwise in writing, shall be sent to:

Ms. Aletha Lenahan, Case Manager
Office of Enforcement-Mail Code 60-02
Indiana Department of Environmental Management
Room N1315
100 N. Senate Avenue
Indianapolis, IN 46204-2251

12. The Respondent is assessed a civil penalty of Twenty Eight Thousand Dollars ($28,000). Said penalty amount shall be due and payable to the Environmental Management Special Fund within 30 days of the Effective Date.

13. In the event the terms and conditions of the following paragraphs are violated, the Complainant may assess and the Respondent shall pay a stipulated penalty in the following amount:

PARAGRAPHS	VIOLATIONS	PENALTY AMOUNT
2	Failure to timely provide proof Respondent ceased illegal discharge of wastewater from the Site and continues proper disposal method.	$1,000 per week late
3	Failure to timely submit a SRP for the Site.	$1,000 per week late
4	Failure to timely develop and submit the CP to IDEM.	$500 per week late
5	Failure to timely submit CP revisions, as necessary.	$500 per week late
6	Failure to timely comply with any milestone dates identified in the approved CP.	$500 per week late
7	Failure to timely submit CP compliance milestone notification to IDEM.	$500 per week late
8 & 9	Failure to timely use ink-laden soil as structural fill base under a crushed stone parking lot, as core material in a landscaping berm, or applied as a base for construction at the Site, as required.	$500 per week late
10	Failure to timely document proper use or disposal of ink-laden soil.	$500 per week late

14. Civil and stipulated penalties shall be due and payable within 30 days after the Respondent receives written notice that the Complainant has determined a stipulated penalty is due. Assessment and payment of stipulated penalties shall not preclude the Complainant from seeking any additional relief against the Respondent for violation of the Agreed Order. In lieu of any of the stipulated penalties given above, the Complainant may seek any other remedies or sanctions available by virtue of the Respondent’s violation of this Agreed Order or Indiana law, including, but not limited to, civil penalties pursuant to IC 13-30-4.

15. Civil and stipulated penalties are payable by check to the Environmental Management Special Fund. Payment shall include the Case Number, 2003-12659-W, of this action and shall be mailed to:

Cashiers Office – Mail Code 50-10C
Indiana Department of Environmental Management
100 N. Senate Avenue
Indianapolis., Indiana 46204-2251

16. In the event that the civil penalty required by Order Paragraph 12, is not paid within 30 days of the Effective Date, the Respondent shall pay interest on the unpaid balance at the rate established by IC 24-4.6-1-101. The interest shall continue to accrue until the civil penalty is paid in full.

17. This Agreed Order is not and shall not be interpreted to be a permit, or a modification of an existing permit, nor shall it in any way relieve the Respondent of its obligation to comply with the requirements of its applicable NPDES permit or with any other applicable federal or state law or regulation.

18. The Complainant does not, by its approval of this Agreed Order, warrant or aver in any manner that the Respondent's compliance with any aspect of this Agreed Order will result in compliance with the provisions of the Clean Water Act, NPDES permit, federal or state law.

19. This Agreed Order shall apply to and be binding upon the Respondent, its successors and assigns. The Respondent's signatories to this Agreed Order certify that they are fully authorized to execute this document and legally bind the parties they represent. No change in ownership, corporate, or partnership status of the Respondent shall in any way alter their status or responsibilities under this Agreed Order.

20. In the event that any terms of the 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 the Agreed Order did not contain the invalid terms.

21. The Respondent shall provide a copy of this Agreed Order, if in force, to any subsequent owners or successors before ownership rights are transferred. The Respondent shall ensure that all contractors, firms and other persons performing work under this Agreed Order comply with the terms of this Agreed Order.

22. This Agreed Order shall remain in effect until the Respondent has complied with terms and conditions of Paragraphs 2 through 16 of this Agreed Order and IDEM has issued a Returned to Compliance/Close-Out letter to the Respondent.

TECHNICAL RECOMMENDATION:			RESPONDENT:
The Department of Environmental Management			Indiana Corrugated, Inc.
By:			By:
	Mark W. Stanifer, Chief			President and Registered Agent
	Water Enforcement Section
	Office of Enforcement
Date:			Date:
COUNSEL FOR COMPLAINANT:			COUNSEL FOR RESPONDENT:
Department of Environmental Management
By:			By:
	Jay Rodia, Attorney
	Office of Legal Counsel
	Department of Environmental Management
Date:			Date:
APPROVED AND ADOPTED BY THE INDIANA DEPARTMENT OF ENVIRONMENTAL
MANAGEMENT THIS		DAY OF			, 2005.	.
			For The Commissioner:
			Signed on May 17 , 2005
			Matthew T. Klein
			Assistant Commissioner for
			Compliance & Enforcement

ATTACHMENT A

A Spill Response Plan will include, but not be limited to, the following:

(1) The names and telephone numbers of persons who are identified by the Respondent as responsible for implementing the Spill Response Plan.

(2) Identification of areas where potential spills can occur and their accompanying drainage points.

(3) Procedures to be followed in the event of a spill, including the following:

(A) Actions to contain or manage any type of spill.

(B) Identification of the proper authorities to be contacted.

(C) Mitigation of any adverse effects of the spill.

(4) Identification of equipment and clean-up materials to be used in the event of a spill.

(5) Procedures for reporting the spill to:

(A) Any applicable local emergency or health authorities; and

(B) IDEM, in accordance with 327 IAC 2-6.1.