BEFORE THE ILLINOIS POLLUTION CONTROL BOARD
PEOPLE OF THE STATE OF ILLINOIS,
)
Complainant,)
-vs-)
No.
05
PCB -207
PRECISION TWIST DRILL CO.,
a Delaware corporation,
)(Enforcement
-
Air)
Respondent.)
To:
See Attached Service List.
NOTICE OF FILING
TO:
See Attached Service List
(VIA ELECTRONIC FILING)
PLEASE TAKE NOTICE that today I have
filed
with the Office of the Clerk of the Illinois
Pollution Control Board by electronic filing the following Stipulation and Proposal for Settlement, and
Motion to Request Relief from Hearing Requirement, copies of which are attached and hereby served
upon you.
Respectfully submitted,
PEOPLE OF THE STATE OF ILLINOIS
LISA MADIGAN
Attorney General
State of Illinois
BY:
4
1
t
i
t
~
Paula Beckefr Wheeler
Assistant Attorney General
Environmental Bureau
188 W. Randolph St.,
2 0th
Floor
Chicago, Illinois 60601
-
312-814-1511
DATE: January
12, 2006
THIIS FILING IS SUBMITTED ON RECYCLED PAPER
ELECTRONIC FILING, RECEIVED, CLERK'S OFFICE, JANUARY 12, 2006
SERVICE LIST
Mr. John J. McAleese IH
Counselor at Law
Morgan,
Lewis & Bockius
l7OlMarket
Street
Philadelphia, PA
19103-2921
Mr.
Bradley
Halloran
Hearing
Officer
Illinois Pollution Control Board
100
West Randolph Street
Suite
11-500
Chicago, 1L.
60601
ELECTRONIC FILING, RECEIVED, CLERK'S OFFICE, JANUARY 12, 2006
BEFORE THE ILLINOIS POLLUTION CONTROL BOARD
PEOPLE OF THE STATE OF ILLINOIS,)
Complainant,)
VS.)
No.
PCB
05 -
207
)
(Enforcement
-
Air)
PRECISION TWIST DRILL CO., a Delaware
)
corporation,)
Respondent.)
MOTION TO REQUEST RELIEF
FROM HEARING REOUIREMENT
NOW COMES the Complainant, PEOPLE OF THE STATE OF ILLINOIS, by LISA
MADIGAN, Attorney General of the State of Illinois, and requests relief from the hearing
requirement in the above-captioned matter.
In support thereof, the Complainant states as
follows:
1
.
On June 7, 2005, a Complaint was filed with the Pollution Control Board
("Board") in this matter.
On January 12, 2006, a Stipulation and Proposal for Settlement was
filed with the Board.
2.
Section 3 1(c)(2) of the Illinois Environmental Protection Act ('Act"), 415 ILCS
5/3 1 (c)(2), (2004), allows the parties in certain enforcement eases to request relief from the
mandatory hearing requirement where the parties have submitted to the Board a stipulation and
proposal for settlement.
Section 3 1
(c)(2) provides:
Notwithstanding the provisions of subdivision (1) of this subsection
(c),
whenever a
complaint has been filed on behalf of the Agency or by the People of the State of Illinois,
the parties may file with the Board a stipulation and proposal for settlement accompanied
by a request for relief from the requirement of a hearing pursuant to subdivision (1).
Unless the Board, in its discretion, concludes that a hearing will be held, the Board shall
cause notice of the stipulation, proposal and request for relief to be published and sent in.
the same manner as is required for hearing pursuant to subdivision (1) of this subsection.
The notice shall include a statement that any person may file a written demand for hearing
within 21 days after receiving the notice. If any person files a timely written demand for
hearing, the Board shall deny the request for relief from a hearing and shall hold a hearing
in accordance with the provisions of subdivision (1).
ELECTRONIC FILING, RECEIVED, CLERK'S OFFICE, JANUARY 12, 2006
3.
No hearing is currently scheduled in the instant case.
4.
The Complainant requests the relief confer-red by Section 3 1
(c)(2) of the Act.
WHEREFORE, the Complainant, PEOPLE OF THE STATE OF ILLINOIS, by LISA
MADIGAN, Attorney General of the State of Illinois, requests relief from the requirement of a
hearing pursuant to 415 ILCS
5/3 1(c)(2),
(2004).
Respectfully submitted,
PEOPLE OF THE STATE OF ILLINOIS
LISA MADIGAN
Attorney General of the State of Illinois
By:
_
_
_
__
_
_
PAULA BECKER WHEELER
Assistant Attorney General
Environmental Bureau
188 W. Randolph St., 20th Fl.
Chicago, Illinois
60601
(312) 814-1511
Dated: January 12, 2006
ELECTRONIC FILING, RECEIVED, CLERK'S OFFICE, JANUARY 12, 2006
BEFORE THE ILLINOIS POLLUTION CONTROL BOARD
PEOPLE OF THE STATE OF ILLINOIS,
Complainant,
PCB
05-207
V.
(Enforcement -Air)
PRECISION TWIST DRILL CO.,
a
Delaware corporation,
Respondent.
STIPULATION AND PROPOSAL FOR SETTLEMENT
Complainant, PEOPLE OF THE STATE OF ILLINOIS, by LISA
MADIGAN, Attorney General of the State of Illinois, the Illinois
Environmental Protection Agency ("Illinois EPA"), and PRECISION
TWIST DRILL CO., ("Respondent" or "Precision"), have agreed to the
making of this Stipulation and Proposal for Settlement
("Stipulation") and submit it to the Illinois Pollution Control
Board ("Board") for approval.
The parties agree that the
statement of facts contained herein represents a fair summary of
the evidence and testimony which would be introduced by the
parties if a hearing were held.
The parties further stipulate
that this stateffent of facts is made and agreed upon for purposes
of settlement only and that neither the fact that a party has
entered into this Stipulation, nor any of the facts stipulated
ELECTRONIC FILING, RECEIVED, CLERK'S OFFICE, JANUARY 12, 2006
herein, shall be introduced into evidence in any other proceeding
except as otherwise provided herein.
If the Board approves and
enters this Stipulation, Respondent agrees to be bound by the
Stipulation and Board order and not to contest their validity in
any subsequent proceeding to implement or enforce their terms.
I.
JURISDICTION
The Board has jurisdiction of the subject ma tter herein and
of the parties consenting hereto pursuant to the Illinois
Environmental Protection Act ("Act"), 415 ILCS 5/1
et seq.
(2
004)
II.
AUTHORIZATION
The undersigned representatives for each party certify that
they-are fully authorized by the party whom they represent to
enter into the terms and conditions of this Stipulation and to
legally bind them to it.
III. STATEMENT OF FACTS
A.
Parties
1.
On June 7, 2005, a Complaint was filed on behalf of the
People of the State of Illinois by Lisa Madigan, Attorney General
of the State of Illinois, on her own motion and upon the request
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ELECTRONIC FILING, RECEIVED, CLERK'S OFFICE, JANUARY 12, 2006
of the Illinois EPA, pursuant to Section 31 of the Act, 415 ILCS
5/31(2004), against the Respondent.
2.
The Illinois EPA is an administrative agency of the
State of Illinois, created pursuant to Section 4 of the Act,'415
TECS 5/4 (2
004)
3.
At all times relevant to the Complaint, Respondent was
and is a Delaware corporation that is authorized to transact
business in the State of Illinois.
B.
Facility Description
1.
At all times relevant to the Complaint, Respondent
owned and operated a drill bit manufacturing facility located at
301 Industrial Drive, Crystal Lake, McHenry County, Illinois (the
"facility").
2.
Emission sources at the facility include a drill bit
stamping process, rust inhibitor coating operations, and two cold
cleaning degreasers.
C.
Allegations of Non-Compliance
Complainant contends that the Respondent has violated the
following provisions of the Act and Board regulations:
Count I:
Failure to Obtain a CAAPP Permit and Pay CAAPP
Permit Fees, in violation of Section 39.5(6) (b)
of the Act, 415 ILCS 5/39.5(6) (b) (2002).
Count II:
Emission Limitation Violations, in violation of
Section 9(a) of the Act, 415 ILCS 5/9(a) (2002),
and 35 Ill. Adm. Code 218.204(j) (4).
Count III:
Failure to Keep Records and Submit Reports, in
violation of Section 9(a) of the Act, 415 ILCS
5/9(a) (2002) and 35 Ill. Adm. Code 218.211 Cc).
3
ELECTRONIC FILING, RECEIVED, CLERK'S OFFICE, JANUARY 12, 2006
D.
Non-Admission of Violations
The Respondent represents that it has entered into this
Stipulation f
or the purpose of settling and compromising disputed
claims without having to incur the expense of contested
litigation. By entering into this Stipulation and complying-with
its terms, the Respondent does not affirmatively admit the
allegations of violation within the Complaint and referenced
within Section III.C herein, and this Stipulation shall not be
interpreted as including such admission.
E.
Compliance Activities
On September 2, 2004, Respondent submitted an application.for
a Federally Enforceable State Operating Permit ("FEsoF") to the
Illinois EPA.
Further, on May 23, 2005, Respondent began using a
compliant coating in its rust inhibiting operations.
It has also
begun keeping all required records.
IV. APPLICABILITY
This Stipulation shall apply to and be binding upon the
Complainant and the Respondent, and any officer, director, agent,
or employee of the Respondent, as well as any successors or
assigns of the Respondent.
The Respondent shall not raise as a
defense to any enforcement action taken pursuant to this
Stipulation the failure of any of its officers, directors,
agents, employees or successors or assigns to take such action as
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ELECTRONIC FILING, RECEIVED, CLERK'S OFFICE, JANUARY 12, 2006
shall be required to comply with the provisions of this
Stipulation.
V.
COMPLIANCE WITH OTHER LAWS AND REGULATIONS
This Stipulation in no way affects the responsibilities of
the Respondent to comply with any other federal, state or local
laws or regulations including, but not limited to, the Act and
the Board regulations, 35 Ill. Adm. Code, Subtitles A through H.
VI.
IMPACT ON THE PUBLIC RESULTING FROM ALLEGED NON-COMPLIANCE
Section 33(c) of the Act, 415 ILCS 5/33(c) (2004), provides
as follows:
In making its orders and determinations, the Board
shall take into consideration all the facts and
circumstances bearing upon the reasonableness of the
emissions, discharges, or deposits involved including,
but not limited to:
1.
the character and degree of injury to, or
interference with the protection of the health,
general welfare and physical property of the
people;
2.
the social and economic value of the pollution
source;
3.
the suitability or unsuitability of the pollution
source to the area in which it is located,
including the question of priority of location- in
the area involved;
4.
the technical practicability and economic
reasonableness of reducing or eliminating the
emissions, discharges or deposits resulting from
such pollution source; and
5.
any subsequent compliance.
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ELECTRONIC FILING, RECEIVED, CLERK'S OFFICE, JANUARY 12, 2006
In response to these factors, the parties state the
following:
i.
Complainant alleges that human health and the
environment were threatened and the Illinois EPA's information
gathering responsibilities hindered by the Respondent's alleged
violations.
2.
There is social and economic benefit to the facility.
3.
Operation of the facility was suitable for the area in
which it occurred.
4.
Obtaining a permit prior to operation of the facility,
complying with its terms, and complying with the Board's
requirements for coating operations, including recordkeeping and
reporting, is both technically practicable and economically
reasonable.
5.
Respondent has subsequently complied with the Act and
the Board Regulations, by filing an application for a FESOP in
September, 2004, using compliant coatings in its operations, and
keeping required records.
The permit application remains pending
with the Illinois EPA.
VII. CONSIDERATION OF SECTION 42(h) FACTORS
Section 42(h) of the Act, 415 ILCS 5/42(h) (2004)
,
provides
as
follows:
In determining the appropriate civil penalty to be
imposed under
.
.
.
this Section, the Board is
authorized to consider any matters of record in
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ELECTRONIC FILING, RECEIVED, CLERK'S OFFICE, JANUARY 12, 2006
mitigation or aggravation of penalty, including but not
limited to the following factors:
1.
the duration and gravity of the violation;
2.
the presence or absence of due diligence on the
part of the respondent in attempting to comply
with requirements of this Act and regulations
thereunder or to secure relief therefrom as
provided by this Act;
3.
any economic benefits accrued by the respondent
because of delay in compliance with requirements,
in which case the economic benefits shall be
determined by the lowest cost alternative for
achieving compliance;
4.
the amount of monetary penalty which will serve to
deter further violations by the respondent and to
otherwise aid in enhancing voluntary compliance
with this Act by the respondent and other persons
similarly subject to the Act;
S.
the number, proximity in time, and gravity of
previously adjudicated violations of this Act by
the respondent;
6.
whether the respondent voluntarily self-disclosed,
in accordance with subsection i of this Section,
the non-compliance to the Agency; and
7.
whether the respondent has agreed to undertake a
"supplemental environmental project," which means
an environmentally beneficial project that a
respondent agrees to undertake in settlement of an
enforcement action brought under this Act, but
which the respondent is not otherwise legally
required to perform.
In response to these factors, the parties state as follows:
1.
Complainant alleges that Respondent failed to obtain a
CAAPP permit within twelve months of the initiation of the
operation of the source, and violated the Board's regulations for
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ELECTRONIC FILING, RECEIVED, CLERK'S OFFICE, JANUARY 12, 2006
coating operations. The alleged violations began on or around
2002, and were individually resolved at various times.
2.
Complainant has determined that Respondent was diligent
in attempting to come back into compliance with the Act, Board
regulations and applicable federal regulations, once the Illinois
EPA notified it of its noncompliance.
3.
The economic benefit to the Respondent is Five Hundred
Dollars in avoided air pollution site fees.
The parties
stipulate that the payment amount agreed to herein is greater
than the total economic benefit arising from delayed and/or
avoided costs, which would be nominal.
4..
Complainant has determined, based updn the specific
facts of this matter, that a penalty of Thirty Thousand Five
Hundred Dollars($30,500.00) will serve to deter further
violations and aid in future voluntary compliance with the Act
and Board regulations.
5.
To Complainant's knowledge, Respondent has one
previously adjudicated case alleging violations of the Act.,
concerning groundwater contamination when the Respondent's former
owner abandoned an underground coolant tank that leaked
trichloroethylene.
Said Consent Order was entered October 27,
2005, case number 03 CHi 521, in McHenry County, Illinois.
6.
Self-disclosure is not at issue in this matter.
,8
ELECTRONIC FILING, RECEIVED, CLERK'S OFFICE, JANUARY 12, 2006
7.
The settlement of this matter does not include a
supplemental environmental project.
Vill.
TERMS OF SETTLEMENT
A.
Penalty Payment
1.
The Respondent shall pay a civil penalty in the sum of
Thirty Thousand Five Hundred Dollars ($30 .500.00) in the manner
prescribed below within thirty (30) days from the date the Board
adopts and accepts this Stipulation.
The Respondent stipulates
that payment has been tendered to Respondent's attorney of record
in this matter in a form acceptable to that attorney.
Further,
Respondent stipulates that said attorney has been directed to
make the penalty payment on behalf of Respondent within thirty
(30) days from the date the Board adopts and accepts this
Stipulation, in a manner described below. The penalty amount of
$30,000.00 described in this Stipulation shall be paid by
certified check, money order or electronic funds transfer payable
to the Illinois EPA, designated to the Illinois Environmental
Protection Trust Fund.
The penalty amount of $500.00 shall be
paid by certified check, money order or electronic funds transfer
payable to the Illinois EPA, designated to the Illinois
Environmental Permit and Inspection Fund.
Both payments shall be
submitted to:
Illinois Environmental Protection Agency
Fiscal Services Section
1021 North Grand Avenue East
P.O. Box 19276
9
ELECTRONIC FILING, RECEIVED, CLERK'S OFFICE, JANUARY 12, 2006
Springfield, IL 62794-9276
The name and number of the case and Respondent's Federal Employer
Identification Number (FEIN) ,36-2229428, shall appear on the
checks. A copy of the certified checks, money orders or records
of electronic funds transfer and any transmittal letters shall be
sent to:
Paula Becker Wheeler
Assistant Attorney General
Environmental Bureau
188
W.
Randolph St.,
2
0 th
Floor
Chicago, Illinois 60601
Maureen Wozniak
Assistant Counsel
Illinois Environmental Protection Agency
1021 North Grand Avenue East
P.O. Box 19276
Springfield, Illinois 62794-9276
2.
Pursuant to Section 42(g) of the Act, 415 ILCS 5/42(g)
(2004), interest shall accrue on any payment not paid within the
time period prescribed above at the maximum rate allowable under
Section 1003(a) of the Illinois Income Tax Act, 35 ILCS 5/1003
(2004)
.
Interest on any unpaid payment shall begin to accrue
from the date the payment is due and continue to accrue until the
date payment is received. When partial payment(s) are made, such
partial payment shall be first applied to any interest on unpaid
payment then due and owing. All interest on payment owed shall
be paid by certified check, money order or electronic funds
10
ELECTRONIC FILING, RECEIVED, CLERK'S OFFICE, JANUARY 12, 2006
transfer, payable to the Illinois EPA, designated to the Illinois
Environmental Protection Trust Fund and delivered to the address
and in the manner described above.
3.
For purposes of payment and collection, Respondent may
be reached at the following address:
Precision Twist Drill Company
301 Industrial Avenue
Crystal Lake, IL
60012
Att'n:
David Thompson
4.
In the event of default of this Section VIII.A, the
Complainant shall be entitled to all available relief including,
but not limited to, reasonable costs of collection and reasonable
attorney's fees.
B.
Future Compliance
Respondent shall immediately comply with the Illinois
Environmental Protection Act, 415 TLCS 5/1 et seq. (2004),
applicable Board regulations, and further, with the terms and
conditions of its FESOP permit once issued.
C.
Future Use
Notwithstanding any other language in this Stipulation to
the contrary, and in consideration of the mutual promises and
conditions contained in this Stipulation, including the Release
from Liability contained in Section VIII.E, below, the Respondent
hereby agrees that this Stipulation may be used against the
11
ELECTRONIC FILING, RECEIVED, CLERK'S OFFICE, JANUARY 12, 2006
Respondent in any subsequent enforcement action or permit
proceeding as proof of a past adjudication of violation of the
Act and the Board Regulations promulgated thereunder for all
violations alleged in the Complaint in this matter, for purposes
of Section 39(a) and (i) and/or 42(h) of the Act, 415 TICS
5/39(a) and(i) and/or 5/42(h) (2004).
Further, Respondent agrees
to waive any rights to contest, in any subsequent enforcement
action or permit proceeding, any allegations that these alleged
violations were adjudicated.
D.
Cease and Desist
The Respondent shall cease and desist from future violations
of the Act and Board Regulations that were the subject matter of
the Complaint as outlined in Section IIT.C ("Allegations of Non-
Compliance") of this Stipulation.
E.
Release from Liability
In consideration of the Respondent's payment of the
$30,500.00 penalty and any specified costs and accrued interest,
completion of all activities required hereunder, its committment
to Cease and Desist as contained in Section VTII.D and upon the
Pollution Control Board's acceptance and approval of the terms of
this Stipulation and Proposal for Settlement, the Complainant
releases, waives and discharges the Respondent from any further
liability or penalties for violations of the Act and Board
Regulations that were the subject matter of the Complaint herein.
12
ELECTRONIC FILING, RECEIVED, CLERK'S OFFICE, JANUARY 12, 2006
The release set forth above does not extend to any matters other
than those expressly specified in Complainant's Complaint filed
on June 7, 2005.
The Complainant reserves, and this Stipulation
is without prejudice to, all rights of the State of Illinois
against the Respondent with respect to all other matters,
including but not limited to, the following:
a.
criminal liability;
b.
liability for future violation of state, federal,
local, and common laws and/or regulations;
C.
liability for natural resources damage arising out of
the alleged violations; and
d.
liability or claims based on the Respondent's failure
to satisfy the requirements of this Stipulation.
Nothing in this Stipulation is intended as a waiver,
discharge, release, or covenant not to sue for any claim or cause
of action, administrative or judicial, civil or criminal, past or
future, in law or in equity, which the State of Illinois or the
Illinois EPA may have against any person, as defined by Section
3.315 of the Act, 415 ILCS 5/3.315 (2004), or entity other than
the Respondent.
F.
Right of Entry
In addition to any other authority, the Illinois EPA, its
employees and representatives, and the Attorney General, her
agents and representatives, shall have the right of entry into
13
ELECTRONIC FILING, RECEIVED, CLERK'S OFFICE, JANUARY 12, 2006
and upon the Respondent's facility which is the subject of this
Stipulation, at all reasonable times for the purposes of carrying
out inspections.
In conducting such inspections, the Illinois
EPA, its employees and representatives, and the Attorney General,
her employees and representatives may take photographs, samples,
and collect information, as they deem necessary.
G.
Enforcement of Board Order
1.
Upon the entry of the Board's Order approving and
accepting this Stipulation-and Proposal for Settlement, that
order is a binding and enforceable order of the Illinois
Pollution Control Board and may be enforced as such through any
and all available means.
2.
Respondent agrees that notice of any subsequent
proceeding to enforce the Board Order approving and accepting
this Stipulation and Proposal for Settlement may be made by mail
and waives any requirement of service of process.
3:
The parties agree that, if the Board does not approve
and accept this Stipulation and Proposal for Settlement, then
neither party is bound by the terms herein.
4.
It is the intent of the Complainant and Respondent that
the provisions of this Stipulation and Proposal for Settlement
and any Board Order accepting and approving such shall be
severable, and should any provision be declared by a court of
14
ELECTRONIC FILING, RECEIVED, CLERK'S OFFICE, JANUARY 12, 2006
competent jurisdiction to be inconsistent with state or federal
law, and therefore unenforceable, the remaining clauses shall
remain in full force and effect.
H.
Execution of Document
This document shall become effective only executed by all
parties.
This document by be executed-by the parties in one or
more counterparts, all of which taken together, shall constitute
one and the same instrument.
(THE REST OF THIS PAGE IS LEFT INTENTIONALLY BLANK)
15
ELECTRONIC FILING, RECEIVED, CLERK'S OFFICE, JANUARY 12, 2006
WHEREFORE, Complainant and Respondent request that the Board
adopt and accept the foregoing Stipulation and Proposal for
Settlement as written.
PEOPLE OF THE STATE
OF
ILLINOIS,
LISA MADIGAN
Attorney General
State of Illinois
MATTHEW J. DUNN, Chief
Environmental Enforcement/
Asbestos Litigation Division
BY:
_
_
_
_
_
_
_
_
_
_
_
_
_
_
_
_
DATE:
ROSEMARIE CAZEAU, Chief
Environmental Bureau
Assistant Attorney General
ILLINOIS ENVIRONMENTAL PROTECTION
AGENCY
BY :
DATE:
ROBERT
A.
MESSINA
Chief Legal Counsel
PRECISION TWIST DRILL CO.
BY:
7A-4
Name:
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Title:
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16
ELECTRONIC FILING, RECEIVED, CLERK'S OFFICE, JANUARY 12, 2006
WHEREFORE, Complainant and Respondent request that the Board
adopt and accept the foregoing Stipulation and Proposal for
Settlement as written.
PEOPLE OF THE STATE
OF
ILLINOIS,
LISA MADIGAN
Attorney General
State of Illinois
MATTHEW
J. DUNN,
Chief
Environmental Enforcement/
Asbestos Litigation Division
B:DATE:____________
Assistant Attorney General
ILLINOIS ENVIRONMENTAL PROTECTION
AGENCY
BY:
DATE:
Chief Legal Counsel
PRECISION TWIST DRILL CO.
BY
:
_
_
_
_
_
_
_
_
_
_
_
_
_
Name
:
DATE:
Title:
_
_
_
_
_
_
_
_
_
_
_
_
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ELECTRONIC FILING, RECEIVED, CLERK'S OFFICE, JANUARY 12, 2006
CERTIFICATE OF SERVICE
I,
PAULA BECKER WHEELER, an Assistant Attorney General in this case, do certify
that I caused to be served this 12th day of January, 2006, the foregoing Stipulation and Proposal
for Settlement, Motion for Request for Relief from Hearing Requirement and Notice of Filing
upon the person listed on said Notice by depositing same in an envelope, by first class postage
and certified mail prepaid, with the United States Postal Service at 188 West Randolph Street,
Chicago, Illinois, at or before the hour of 5:00 p.m.
PAULA BECKER WHEELER
January 12, 2006
ELECTRONIC FILING, RECEIVED, CLERK'S OFFICE, JANUARY 12, 2006
