ILLINOIS POLLUTION CONTROL BOARD

January 24, 1974

ENVIRONMENTAL PROTECTION AGENCY,

Complainant,

v.

)

PCB 72—489

STEPAN CHEMICAL COMPANY, a

Delaware Corporation,

Respondent.

STEPAN CHEMICAL COMPANY, a

Delaware Corporation,

Petitioner,

)

PCB 73—184

ENVIRONMENTAL PROTECTION AGENCY,

Respondent.

James Rubin and Stephen Wiss, Assistant Attorneys General for the EPA

Henry Handzell, Attorney for the EPA

James W. Gladden, Jr. and John Bleveans, Attorneys for Stepan

Chemical Company

OPINION AND ORDER OF THE BOARD (by Mr. Henss)

This enforcement action (#72-489) and variance (#73-184) were

consolidated for disposition. The enforcement case was initiated

by the Environmental Protection Agency on December 13, 1972. Re-

spondent Stepan Chemical was charged with violating an effluent

restriction contained in SWB permit No. 1969-EA-701, and this was

alleged to be a violation of Section 12(b) of the Environmental

Protection Act. Respondent was also charged with causing, or

allowing the discharge of color, total suspended solids, BOD5,

fecal coliform, and turbidity so as to cause or tend to cause water

pollution. The discharges have allegedly occurred each day of

operation since November 10, 1971 in violation of Section 12(a) of

the Act, Rule 1.08(10) (b) (3) of SWB—14, Rules 401(c) 

403 and 404(a)

of the Illinois Water Pollution Control Regulations.

In response to the Agency Complaint, Stepan filed its Petition

for Variance on May 2, 1973 requesting relief from Rule 404(f) of

the Regulations. A public hearing was held on the consolidated

cases on July 19, 1973.

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—2—

At the public hearing the parties informed the hearing

officer that they had entered into an agreement which they

believed would dispose of all the issues, consistent with the

public interest. They informed the hearing officer that signed

copies of the proposed settlement agreement and the Agency

recommendation would be filed the following week.

For reasons still unknown, the parties did not submit the

proposed settlement until 5 months later. In addition, the

Agency failed to submit a Recommendation in the variance case,

and has therefore, not complied with the requirements of Section

37 of the Act. This failure was explicitly pointed out to the

Agency in our Orde.r dated September 20, 1973.

Stepan Chemical Company operates a chemical plant in Will

County near the Des Plaines River known as the Milisdale Plant.

At this plant Stepan produces phthalic anhydride, liquid deter-

gent intermediates, dry cleaning emulsifiers, polyurethane foam

systems and high purity speciality chemicals for the cosmetic

industry.

In October 1969 Stepan was granted a permit by the Sanitary

Water Board (SWB) to install and operate a secondary waste treat-

ment facility. This facility was designed to produce an effluent

which would have no more than 30 mg/l of BOD and 35 mg/l of

suspended solids. The new equipment for the facility consisted

of a storm water lagoon, an equalization tank, chemical feeding

equipment, a 1.4 million gallon aeriated biological oxidation

reactor, two final settling tanks, two aerobic. digesters, a

chlorination contact chamber and aeriation facilities. The

secondary waste treatment facility, designed by the Horton Process

Division of Chicago Bridge and Iron Company based upon specifications

developed by Betz Laboratories, was completed in December 1970 at

a cost of over $1,100,000. The new facility discharged to Cedar

Creek about 1600’ from the confluence of Cedar Creek with the Des

Plaines River.

Performance test conducted in May 1971 indicated that the

facility had the capability of producing an effluent with an

average BOD concentration of 7.1 mg/l. However, since its in-

stallation, Stepan has encountered problems in achieving a con-

sistent effluent of no more than 30 mg/l BOD and 37 mg/i suspended

solids primarily because of surge loadings to the waste water

treatment facility. Copies of Stepan’s monthly effluent reports

filed with the Agency since November 10, 1971 show several instances

of BOD discharges in excess of 600 mg/l and at least 37 discharges

in excess of 100 mg/l.

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—3—

In May 1972 Stepan retained the services of E. T. Erickson,

a registered professional chemical engineer, to review the

operation of the waste water treatment facility. Erickson

recommended that Stepan establish regular maintenance schedules,

change the movement of sludge and the levels of sludge in various

parts of the waste treatment facility, and change the nutrient

feed ratio of ammonia and phosphate. Erickson also recommended

that equipment be installed to monitor the discharges from the

various production facilities. Since Erickson felt surge loadings

had been the primary problem with the facility, he recommended

that Stepan consider ways to reduce spills.

Stepan claims to have followed Erickson’s recommendations

and further to have undertaken studies to determine ways of re-

ducing the loading to the waste treatment facility. It was

stated that the studies by the Stepan engineering department

resulted in the development of a program which is now being put

into effect.

In April 1973 Stepan entered into a contract with Erickson

which gave Erickson complete and independent authority to operate

the waste treatment plant. Since that time the pretreatment

lagoon has been drained and dredged, the equalization tank in the

waste treatment facility was drained and new influent and discharge

lines installed which will retain the fluid in the tank for the

requisite time, and necessary piping for recirculation has been

installed.

These projects were not completed until September 1973.

While the effect of the projects has been to cause a significant

improvement in the effluent from th~treatment plant, data for the

last six months shows that the plant effluent has averaged 42

mg/l BOD and 32 mg/l suspended solids.

The parties expect that, when start—up problems which are

usually associated with major changes in a system are resolved,

the system will consistently meet the standard. Improvements are

also expected when Stepan personnel become proficient in operating

the pre—treatment lagoon and recirculation system. Mr. Erickson

is presently working with Stepan to insure that compliance is

achieved by February 15, 1974.

Thus, while Stepan has not yet achieved the reduction in

BOD and suspended solids requisite for compliance with Rule 404(a)

in discharges to the Des Plaines River, it appears that Stepan may

achieve the required levels after “fine tuning” adjustments and

operator training has been completed.

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—4—

In the interim period after the Complaint was filed but

before the signing of the proposed settlement, Stepan claims

to have undertaken and completed the following actions to

improve the operation of its waste treatment facility:

1. Installed and operated a new surface condenser

vacuum system in process buildings “M” and “F”.

This system will reduce the hydraulic loading

to the waste water treatment plant by approxi-

mately 70,000 gallons and will remove from the

waste water treatment plant approximately

200,000 lbs. of methanol and approximately

100,000 lbs. of n-hexanol per year. The new

system replaced a system of barometric condensers

in those buildings.

2.  Installed and operated a closed compressor system

for unloading ethylene oxide from tank cars to

storage. This will eliminate approximately 200

lbs. a day of ethylene oxide from the waste

treatment system.

3. Ceased discharging methanol from the methanol

recovery column to waste water treatment plant.

This will eliminate an additional 2200 lbs. per

day of methanol from the waste water treatment

system.

4. Installed and operated a cooling tower which

will recycle most of the non—contact cooling

water in the plant. This will reduce the hy-

draulic load to the waste water treatment plant

by approximately 300,000 gallons per day.

5. Installed a lime dike to prevent the possibility

of any runoff to Cedar Creek from the area where

the sludge from the waste water treatment plant

is discarded.

6. Installed new drainage ditches which will divert

storm water from the higher land east of the

plant away from the drainage system to the waste

water treatment plant.

7. Surveyed plant operations for areas where spills

may occur and instituted strict housekeeping

procedures to protect against spills.

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—5—

As part of the proposed settlement program, Stepan pro-

poses to institute the following programs:

1. Beginning December 1, 1973 and continuing

through April 30, 1974 Stepan will continuously

monitor the influent to and the effluent from

the waste water treatment plant and will run

a weekly BOD test of the effluent on a composite

sample collected during the week.

2. At monthly intervals, beginning on the 31st day

of the month after the entry of an order by the

Board Stepan will report to the Board and the

Agency on its progress under the above described

program. The report shall include the results of

the test done with respect to the operation of

the waste water treatment plant. Representatives

of the Agency shall have the right to visit

Stepan’s plant during working hours upon reasonable

notice.

3. Stepan agrees to execute within 30 days from the

approval of the proposed program, a performance

bond in the amount of $5,000 to guarantee the

performance of the test referred to in Part 1

above.

4. Stepan agrees to file a complete construction

permit application on or before February 15, 1974

specifying the manner in which it will divert the

discharge from its waste water treatment plant to

the Des Plaines River. Within 90 days from receipt

of a construction permit, but in no event later

than July 15, 1974, Stepan agrees to operate its

waste water treatment facility so that there will

be no discharge from that facility to Cedar Creek.

5. Stepan agrees to execute within 30 days from the

approval of the proposed settlement, a forfeiture

bond for liquidated damages in the amount of

$30,000 in the event that Stepan fails to perform

the acts set forth in part 4 above.

6. Stepan agrees that the discharge from its waste

water treatment facility when diverted to the Des

Plaines River will be in compliance with Rule 404(a),

and that pursuant to Rule 404 (b) (ii), the discharge

from its waste water treatment facility will be

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—6—

reduced to 20 mg/l BOD and 25 mg/l suspended

solids on or before December 31, 1974.

the effluent

requirements for the Des Plaines

River are changed at any time in the future,

Stepan agrees to operate its waste water

treatment facility in compliance with such

new requirements.

7. Stepan agrees to submit and obtain construction

permits for all future modifications in its

waste treatment facilities.

On or before

January 1, 1974 Stepan will submit necessary

permit applications

for all modifications made

in the new waste water treatment facility

from

April

1, 1973 to date. Stepan shall also submit

on or before February 15, 1974 a compliance

program, pursuant to Rule 1002, 

showing how it

intends to achieve a discharge of 20 mg/i BOD

and 25 mg/l suspended solids on or before

December 31, 1974 and, a further program to

assure a consistent discharge of 30 mg/l BOD

and 37 mg/l suspended solids when the discharge

of the waste water treatment system is diverted

to the Des Plaines River.

Upon acceptance by the Board of the proposed settlement,

Stepan agrees to remit $12,500 to the State of Illinois.

Acceptance

of the proposed settlement by •the Board is to be deemed the grant

of a variance for Stepan to continue its waste water treatment

plant as outlined in the program.

It was also stipulated

that Stepan’s time for performance

of any term

of this proposed stipulation and settlement may be

extended by the Board for good cause upon application by Stepan

after reasonable

opportunity for the Agency to respond to any

such application. (Presumably any extension beyond the term of

v,ariance would necessitate the filing of a new variance petition.)

The final section of the proposed settlement calls for all

remaining obligations of Stepan to cease

upon the occurrence of

one or more of the following events:

1. The permanent cessation,

for any reason, of

operations at the Millsdale Plant;

2.

The obtaining by Stepan from the Board of an

explicit written release of such obligations.

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—7—

In the Petition for Variance, Stepan estimated that 3,000’

of pipe at a minimum cost of $90,000 would be required to dis-

charge its effluent to the Des Plaines River. At that time

Petitioner felt such an expense would impose an arbitrary and

unreasonable hardship completely disproportionate

to the actual

benefit to the water quality of 1600’ of Cedar Creek.

Stepan now plans to install the pipe and divert its

effluent to the Des Plaines River by July 15, 1974. The Board

heartily approves of this change in attitude by Stepan.

The

Des Plaines River, by far, has the greater assimilative capacity

of the two streams involved.

Once the diversion is completed,

Cedar Creek should be able to recover and assume its proper

role in the area’s

ecosystem.

We find the proposed settlement agreement to be a reasonable

resolution of all issues involved.

Stepan’s abatement program

has already

produced a significant improvement 

in the quality of

its effluent.

Both parties believe that the goal of compliance

with Rule 404(a) will be achieved on or before February 15, 1974.

The $12,500 penalty to be imposed for Stepan’s past violations is

fair

in

light of the degree of pollution and length of time in-

volved.

Petitioner has filed a Motion to Withdraw Petition for

Variance. This action was conditioned on our acceptance of the

proposed settlement, particularly paragraph J which called for

a grant of the variance.

This Motion must be denied.

While

Stepan is entitled to a variance, we do not think that variance

should be granted in

an enforcement case. Therefore, we shall

grant Stepan a variance in PCB 73—184 in lieu of paragraph J of

the proposed settlement agreement.

The record at this time does not allow the granting of a

full year’s variance.

Stepan’s discharge is and will continue

to be going to Cedar Creek until about July 15, 1974. The

standard applicable to Cedar Creek Rule 404(f)1 requires that

Stepan discharge an effluent containing not more than 4 mg/l

BOD and 5 mg/l suspended solids.

We believe that the minimum

acceptable

is

a positive showing that Stepan can at least con-

sistently produce an effluent meeting the higher standard of

30 mg/l BOD and 37 mg/l suspended solids. As noted above,

Stepan believes the showing will be made by February 15, 1974.

Therefore, we shall establish that Standard as a condition of

the variance during the time Stepan is discharging to Cedar

Creek.

If the Standard is being met, no variance will be necessary

following diversion to Des Plaines.

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—8—

We think Stepan should submit both compliance plans

called for in the settlement. This will have the effect of

allowing the Agency to have full knowledge of Stepan’s future

abatement undertakings particularly as Stepan pursues the

20 mg/l BOD and 25 mg/l suspended solids standard.

ORDER

1. The Pollution Control Board hereby accepts the

amended stipulation and proposal for settlement

submitted by Stepan Chemical Company and the

Environmental Protection Agency except for

Paragraph J.

2. Stepan Chemical is granted variance from Rule

404(f) of the Illinois Water Pollution Control

Regulations until July 15, 1974 upon condition

that its effluent not exceed 30 mg/l BOD and

rng/l 

suspended solids after February 15, 1974.

3. Pursuant to Paragraph I of the Amended Stipulation

and Proposal for Settlement, Stepan shall submit

by February 15, 1974:

A. A program assuring a consistent discharge

of no more than 30 mg/l BOD and 37 mg/i

suspended solids when the discharge from

the waste water treatment system is

diverted to the Des Plaines River;

B. A compliance plan pursuant to Rule 1002,

showing how it intends to achieve a

discharge of no more than 20 mg/i BOD

and 25 mg/i suspended solids on or before

December 31, 1974.

4. Stepan Chemical Company shall, within 30 days from

the date of this order, pay to the State of Illinois

the sum of $12,500 for past violations found herein.

Penalty payment by certified check or money order

payable to the State of Illinois shall be made to:

Fiscal Services Division, Illinois EPA, 2200

Churchill Road, Springfield,

Illinois 62706.

I, Christan L. Moffett, Clerk of the Illinois Pollution Control4Board

hereby certify the above Opinion and Order was adopted this 

‘

day of       

1974 by a vote of ~

to p

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