ILLINOIS POLLUTION CONTROL BOARD
    November 22, 1974
    )
    LACLEDE STEEL
    COMPANY
    )
    )
    )
    v.
    )
    PCB
    72-425
    )
    72-505
    )
    ENVIRONMENTAL
    PROTECTION
    AGENCY
    )
    )
    MR. JOSEPH H.
    WEYIIRICH,
    Lewis,
    Rich, Tucker, Allen ~ Chubb
    appeared on behalf of LaClede Steel
    Company
    MR.
    LARRY
    R.
    EATON,
    and
    MR.
    DELBERT
    IIASCIIEMEYER,
    Assistant
    Attorney
    Generals,
    appeared
    on
    behalf
    of
    the
    Environmental
    Protection
    Agency
    OPINION
    AND
    ORDER
    OF
    THE
    T3OARI)
    (by
    Mr.
    I)umelle)
    This
    opinion
    is
    in
    support
    of
    an
    order
    entered
    November
    14,
    1974
    which
    granted
    variances
    with
    conditions.
    LaCiede
    Steel
    Company
    (LaClede)
    requests
    a
    variance
    from
    the Illinois Sanitary Water Board Regulations
    (SWB),
    the Environmental
    Protection Act
    (Act)
    and the Water Pollution Regulations
    of the
    Illinois
    Pollution Control Board (Water Regulations)
    in order that
    it
    may
    continue
    to discharge contaminants
    from its steel mill during
    the
    time
    that
    it
    is
    constructing
    a
    treatment
    system.
    LaClede
    filed
    a
    variance
    petition,
    PCB
    72-425,
    seeking
    a
    variance
    from
    the
    SWB
    Rules
    and
    Regulations,
    on
    October
    30,
    1972.
    The Agency filed
    a Motion to Dismiss
    this variance petition on
    November
    17,
    1972.
    The Board on November
    21,
    1972 denied the
    Agency’s Motion
    to Dismiss
    and ordered LaClede
    to amend its
    variance petition so
    as
    to comply with the Board’s Procedural
    Rules.
    The
    Agency
    Filed a Motion to Reconsider this denial on
    December
    5, i972~
    LaClede filed an Amended Variance Petition on
    December
    8,
    1972
    which
    sought
    a
    variance from SWB-13 until
    July
    31,
    1973.
    The Board denied the Agency’s Motion to Reconsider
    on
    December
    12,
    1972 because LaClede’s Amended Variance Petition
    conformed to
    the
    Board’s Procedural Rules
    and satisfied the Agency’s
    original grounds for the Motion to Dismiss.
    On December 20, 1972,
    LaClede filed
    a new Petition for Variance,
    PCB 72-505, which requested
    a variance from Water Regulation 903(a) which required LaClede
    to obtain an operating permit for its lagoon and tube mill discharges
    after December
    31,
    1972;
    Water Regulation 921(d) which required LaClede
    to
    file an approved Project Completion Schedule prior
    to obtaining
    an operating permit;
    and
    Water
    Regulation
    1002
    which
    requires
    that
    a
    Project
    Completion
    Schedule
    show
    compliance
    with
    the
    applicable
    deadlines.
    LaClede,
    in PCB 72-505, sought
    a variance for
    14—463

    -2-
    one year.
    The Agency
    filed a Recommendation
    on February 28, 1973
    to deny the variance request
    because
    LaCiede
    had not
    shown that
    its present inability to meet these
    standards was not due solely
    to its own inaction.
    LaCledo
    Filed
    a naw
    Amended
    Consolidation
    Petition for a Variance, PCB
    72-425
    and 505,
    on May
    1,
    1973 requesting
    a variance
    from
    Water
    Regulations
    921,
    404(b)
    404(f),
    408 and
    203.
    The Agency filed
    a Recommendation
    to LaClede’s new Variance
    request on September
    20,
    1973.
    The Agency recommended that LaCiede’s
    request
    for a variance from Water Regulation 921(d)
    be dismissed as
    moot and the request
    for a variance from Rules
    203,
    404 and 408
    of the Water Regulations be denied because LaClede’s variance
    petition sought
    a shield from prosecution based on past inaction
    and was
    therefore
    a self-inflicted hardship.
    The
    Agency
    further
    stated that LaClede’s request that Shield’s Branch he designated
    Secondary Contact and Indigenous Aquatic Life Waters
    (Secondary
    Contact) pursuant to Rule
    302(k) was not
    a proper request.
    On
    December
    7,
    1973 the Agency filed
    an Amended Recommendation setting
    forth the previous objections and recommended that
    in the event
    a
    variance
    is
    granted,
    it should be limited solely to those
    rules from
    which
    a variance was requested in LaClede’s Amended Consolidated
    Petition for Variance dated May 1,
    1973.
    Three days of hearings were
    held in December,
    1973
    in Alton,
    Illinois.
    Following
    the hearing
    the
    parties submitted both briefs and reply briefs.
    LaClede filed
    a
    Motion for Oral Argument which the Board denied on February 28,
    1974.
    LaClede operates
    a steel mill located within the City of
    Alton,
    in Madison County,
    Illinois.
    LaClede has been in operation
    at this
    site since
    1915
    (R.
    44).
    LaClede employs approximately
    3,000 people with an annual payroll of $30 million dollars at the
    Alton plant
    (R.
    31-33).
    LaClede produces semi-finished steel
    products,
    such
    as
    irigots and billets, and finished steel products,
    such
    as wire, pipe,
    tubing and reinforcing bars,
    for the manufacturing
    and construction industries
    (R. 20-26).
    In producing
    the 800,000
    tons of steel annually, LaClede uses approximately
    44 million
    gallons
    of water per day
    (mgd)
    of which approximately
    38 mgd
    is
    recycled within the plant
    (R.
    59).
    Approximately
    3 mgd is
    lost
    through evaporation
    (R.
    85) and about
    3 mgd is discharged through
    the waste
    treatment system
    (R.
    85,
    117).
    LaClede’s wastes are discharged into
    an “M” shaped lagoon
    which provides some settling and
    an unspecified detention time
    (R.
    79), and where caustic
    is added to neutralize the acid
    contents.
    (R.
    79,
    123).
    This lagoon and caustic additive process
    has been in operation since approximately 1965
    (R.
    123).
    Other
    portions
    of the wastewater system,
    such as
    the open-hearth pond,
    date back much further
    (R.
    126).
    Water quality tests, conducted by LaClede
    14
    —464

    -3-
    before construction of the acid reclamation system, show
    the
    following effluent characteristics
    (R.
    178 and LaClede’s Exhibit
    16, p.
    1)
    Parameters
    Milligrams Per Liter
    (mg/i)
    Iron
    (total)
    400
    Lead
    0.3
    Chromium
    (total)
    0.1
    Manganese
    3.6
    Zinc
    10
    Suspended solids
    195
    The Agency monitored LaClede’s effluent and submitted the following
    chemical characteristics
    (Agency Recommendation
    p.
    2);
    Parameters
    Milligrams
    Per Liter
    (mg/i)
    BUD
    8-1300
    Iron
    40400
    Lead
    Chromium
    (total)
    Manganese
    2.0
    -
    4.2
    Zinc
    2.3
    -
    3.0
    Suspended Solids
    40-540
    Oil
    0-32
    pH
    4.7
    -
    6.3
    Dissolved Solids
    920
    -
    2000
    Sulfate
    1300
    Ammonia
    1.4
    -
    218
    14
    465

    -4-
    Both LaClede’s and the Agency’s effluent sampling were conducted
    prior
    to the time that LaCiede had
    in
    operation an acid recovery
    system which should remove approximately 20,000 gallons per
    day of spent
    sulfuric acid, pickle liquor,
    (R.
    117)
    from LaClede’s
    effluent.
    This should improve the quality of
    the wastewater
    discharge
    CR.
    180,
    181).
    LaClede estimates
    that with the acid
    recovery system in operation,
    its effluent
    would
    have the following
    characteristics (LaClede’s Exhibit 16);
    Parameters
    Milligrams Per Liter
    (mg/i)
    BOD
    12
    Suspended solids
    100
    Iron
    (total)
    40
    Chromium
    (total)
    0.15
    Manganese
    1.4
    Zinc
    1.3
    Lead
    0.25
    The Agency has recommended that LaClede’s variance petition
    be denied because LaClede’s past inactions
    in treating its
    industrial waste
    (Agency Amended Recommendation p.
    6).
    LaClede’s
    position is that the first knowledge they had of any treatment
    requirement was contained in a letter from Mr.
    C.W.
    Klassen
    of
    the Agency dated January 19, 1971
    (LaClede Exhibit 4), which
    advised them of PCB Regulation R70-3 requiring secondary treatment
    by December 31, 1973
    (R.
    86).
    However, LaClede did construct the
    “W’
    lagoon and neutralization facilities
    in 1966
    (R.
    79,
    80).
    Apart from the lagoon and caustic treatment installation,
    LaClede had not conducted any additional water pollution control
    activities
    (R.
    126-128).
    Subsequent to January,
    1971 LaClede installed
    a portable
    oil skimmer in the fall of
    1972 to remove
    oil from various ponds
    located within LaClede’s plant water system
    (R.
    108).
    LaClede
    installed a permanent oil skimmer in May,
    1973 at
    a cost of
    approximately $50,000
    (R.
    109-110).
    LaClede obtained the necessary
    construction and operating permits
    in September,
    1973.
    In September,
    1973 the1waste discharges from the tube mill
    were diverted
    to the plaht’s sewer system.
    This eliminated
    a
    second discharge pipe from LaClede’s plant and provided lagoon
    settling for the tube mill discharge
    (R.
    84).
    14
    —466

    -5-
    LaClede designed and constructed an acid recovery system to
    treat the pickle liquor waste at an approximate cost of $950,000
    CR.
    113).
    As
    of the date of the hearing, construction of the
    actual equipment had been completed and pickle liquor from the
    wire
    mill was being treated
    (p.
    6 LaClede Brief).
    By January, 1974
    all other pickle liquor streams should be tied into the system
    (R.
    Ill).
    LaClede applied for the necessary permits but the
    Agency has not approved the permits for the acid recovery system
    (R.
    107-108).
    Engineers
    for LaCiede could not give
    a monetary value
    for the recovery by-products
    obtained in the settling port1ions
    of
    LaClede’s treatment system or for the acid recovery system
    (R.
    134).
    The Board, although sympathetic to the Agency’s position that
    LaClede should not be granted
    a variance based on past inaction,
    finds
    that sufficient
    information was not presented to deny
    a
    variance
    request on this ground
    only.
    LaClede did construct the settling
    lagoon and caustic neutralization facilities
    in 1966.
    When con-
    fronted with the letter from Mr.
    Klassen, LaClede proceeded in
    an
    appropriate fashion to develop
    a wastewater treatment plan
    including the interim installation of oil skimming devices and the
    acid reclamation system.
    The Board finds
    that LaClede’s use of
    the entire seven-day
    10-year
    low flow of the Mississippi River
    for calculating dilution
    \ralues
    is not correct
    (R.
    179,
    215).
    LaClede did not submit any
    calculated water quality values
    at
    the edge
    of the applicable
    mixing
    zone,
    but rather based its water quality values on the entire
    ten year
    low flow volume in the Mississippi River
    (R.
    179).
    Any
    requests for an extension of this variance must contain estimated
    water quality values at the edge
    of the applicable mixing
    zone.
    The
    major
    issue
    presented
    in
    this variance petition is what
    regulations govern LaClede’s effluent.
    Regardless
    of which of the
    two positions
    is chosen LaClede’s effluent is
    in violation of
    the regulation which might be applied
    to it,
    even with oil
    skimming and acid recovery systems on line.
    LaClede’s treatment
    system is scheduled for completion by October 1975.
    The treatment
    system that LaClede
    is proceeding
    to implement should result in
    compliance with the water quality standards that apply to dis-
    discharges into the Mississippi River
    (R.
    179).
    LaClede estimates
    that the total cost of the system will be approximately $34 million
    dollars which does not include the cost expended for the oil
    skimming devices and the acid reclamation system
    CR.
    113).
    The Agency maintains that
    since LaClede discharges
    into Shield’s
    Branch,
    the Mississippi standards
    are not applicable.
    14—467

    -6-
    Therefore,
    the Board must decide if LaClede’s effluent
    is
    to be governed by the Mississippi discharge standards found in
    Rule
    404 or the discharge standards applicable
    to Shield’s Branch.
    Detailed information was presented by both LaClede and the
    Agency concerning the status of Shield’s Branch.
    The history of
    Shield’s Branch gives
    some insight
    as
    to its characterization.
    Aerial photographs
    taken in 1941
    (LaClede Exhibit 20a and
    20
    b)
    show Shield’s Branch as
    it meandered downstream of the Owens-
    Illinois plant
    to the slough of the Mississippi River.
    Asked to
    describe the contents
    of the stream in those days, Mr.
    Sheppard,
    an Alton consulting engineer since
    1921,
    stated:
    “In 1941
    it
    (Shield’s Branch) was carrying waste
    from Owens Illinois Glass Company,
    a stormwater from
    Shield’s Valley Drainage Area of about 1500 acres,
    it was carrying a number
    of sewerways,
    that
    is
    sanitary waste
    from various
    sewers..
    .“
    (R.
    310).
    By 1954
    a
    levee had been constructed along
    the bank of
    the
    Mississippi which had the effect
    of isolating the slough area
    from
    the River itself
    (R.
    311).
    Aerial photographs taken in 1955 (La-
    Clede Exhibit 22a and
    22b)
    showed the slough to be reduced to
    a
    single channel carrying the flow of Shield’s Branch.
    At
    that
    time
    the channel entered the Mississippi through twin-60’s
    culverts in
    the levee.
    These photographs also show that Shield’s
    Branch has been straightened and channelized
    for a short dis-
    tance upstream of where it enters the former slough area.
    The
    result of
    the levee was to effectively increase the length
    of
    Shield’s Branch between Owens
    Illinois Plant and its dis-
    charge to the Mississippi.
    Finally,
    in 1963
    the diversion dam
    was installed under Owens
    Illinois that was designed
    to divert all
    dry weather flow plus additional flow up
    to
    2-1/2
    times
    dry weather
    flow,
    to the Alton Sewage Treatment Plant
    (R.
    306,
    316).
    Mr.
    Sheppard
    estimates that sufficient rainfall occurs--somewhere in excess of
    0.1
    inch--so that the
    dam
    overflows
    approximately
    50
    to
    60
    times
    a year
    (R.
    320).
    When this happens stormflow sewage,
    and
    industrial effluent enters the channel downstream
    of the
    dam
    (R.
    326) but upstream of LaClede’s outfall.
    The hydrology of the area
    is shown
    in Agency Exhibit
    3 and
    LaClede Exhibit
    21.
    North
    (upstream)
    of Broadway Street,
    Shield’s Branch is
    a small stream
    (Agency Exhibit
    5
    thru
    9)
    fed continuously by a spring
    (R.
    281) and
    by
    storm runoff during
    periods
    of precipitation
    (R.
    319).
    The watershed of~Shield’s
    Branch, north of Broadway Street,
    appears to contain between
    1300 and 1400 acres
    (Agency Exhibit
    3).
    The record and exhibits
    show that for most of its length north of Broadway, Shield’s
    14
    468

    -7-
    Branch is
    an unaltered waterway
    (Agency Exhibit
    5-7).
    Approximately
    2,000 feet north of Broadway Shield’s Branch
    becomes
    a concrete
    channel and 1,000 north of Broadway goes underground until
    it
    emerges south of Broadway on the Owens
    Illinois property.
    At
    a point underneath Owens Illinois, the diversion dam is located
    (R.
    281)
    .
    Other changes
    to the channel at Owens
    Illinois include
    a relocation of the original channel
    some
    26 feet east
    (R.
    323).
    This new channel
    is
    a concrete channel
    into which LaClede dis-
    charges.
    Several hundred
    feet downstream of LaClede’s discharge
    point the concrete stops
    and the channel becomes
    a dredged
    and straightened version of the original channel.
    Mr.
    Sheppard
    testified that
    this “improved channel” was created to control
    erosion and that
    it takes
    the place entirely of the old channel
    (R.
    323,
    326).
    The
    distance from La Clede’s discharge point to the
    twin sixties,
    the discharge point into the Mississippi River,
    is
    approximately one mile
    (R.
    259).
    Downstream of the diversion dam,
    the flow
    is almost entirely
    LaClede’s plant effluent.
    In addition surface runoff from an area
    of about 174 acres drains into the stream
    at approximately the
    same point
    as LaClede’s effluent
    (R.
    340,
    341).
    In addition,overflow
    which occurs during wet weather comes down the
    altered channel.
    An Agency aquatic biologist testified that when LaClede’s
    treatment plant will be completed and in operation,
    the water
    quality
    in the Shield’s Branch downstream
    of the outfall
    of LaClede would be sufficient
    to support
    a balanced aquatic
    community
    (R.
    293).
    He defined
    a balanced community of aquatic
    organisms
    as one where the preponderance
    or major abundance of
    organisms will
    be
    in
    favor of more intolerant
    (to environmental
    toxicants such
    as industrial
    or municipal wastes)
    forms
    (R.
    293).
    While
    this was not contested by LaClede, no evidence was presented
    as to the expected DO level.
    The question before the Board
    is whether LaClede discharges
    to the Mississippi River through an industrial
    sewer which
    is an
    extension of LaClede’s treatment plant or whether LaClede discharges
    into Shield’s Branch,
    a water of the State for regulatory purposes?
    The Board has determined that
    the above question must be decided
    by closely examining each separate factual situation in light of
    general guiding principles
    set out
    in previous cases.
    “The Board
    feels that
    this question is
    such
    a variable nature that no hard and
    fast rule can be
    set down,
    and so the Board shall decide the case
    on its facts, and such other cases
    in the future will be decided on
    the merits of each case”
    (Central Illinois Public Service Company v.
    EPA, PCB 73-384,
    p.
    3
    (March 28, 1974))
    (CIPS).
    When the Board
    decides
    that
    a body of water
    is not a water
    of the state, the Board
    is declining to extend the Board’s regulatory power over the broad
    statutory grant of authority found by Section 11(a)
    of the Act.
    14—469

    -8-
    The Board has considered the question of what constitutes
    a “water of the state” in numerous recent cases,
    In Alton Box
    Board Company
    v.
    EPA, PCB 73-140,
    9-15
    (August 9,
    1973)
    (Alton),
    the Board held that the question present was whether “the
    receiving stream was the Mississippi River or
    a tributary to
    the Mississippi River known
    as
    Shield’s Branch”(Alton,
    Supra
    at 9-18).
    The Board held that the Mississippi River effluent standards
    apply and that “Shield’s Branch as
    it was once known no longer
    exists”
    (Alton,
    Supra at 9-19).
    However,
    this determination was held to be of no precedential
    value in EPA v, Alton Box Board Company
    and LaClede Steel Company,
    PCB
    74-51
    (August
    29,
    1974).
    Information was presented to the
    Board,
    that Shield’s Branch
    (or the “industrial ditch”) did not
    flow directly into the Mississippi River but in fact had been
    impounded and reversed in flow,
    The impoundment drained some
    7,200 feet upstream at
    the Wood River Drainage Ditch Alton pumping
    station where
    it
    was pumped over the Mississippi level.
    Because of this information,
    the Board finds
    that its
    previous ruling that Alton discharged directly to the
    Mississippi River
    is
    of no precedential value.
    The
    original decision that Alton discharged directly to the
    Mississippi River was correct based upon the information
    presented at the original hearing
    in PCB 73-140. However,
    this new information presented regarding the closing of
    the twin 60’s
    does not support
    a determination that
    Alton discharges
    directly to the Mississippi River
    (EPA v. Alton and LaClede, supra,
    5,
    6,
    and 7).
    EPA
    V.
    Alton and LaClede, supra, was an enforcement action which
    stemmed from H7S emissions
    from the impoundment,
    or slough area,
    into which both Alton and LaClede discharge.
    The twin-60’s, which
    provide the drainageway under the levee, had been closed by
    the
    Army Corps
    of Engineers
    (Corps).
    This resulted
    in the impoundment
    being formed, which
    reversed in flow and drained some 7,200 feet
    upstream at the Wood River Drainage District Alton pumping
    station where
    it
    was pumped over into the Mississippi River.
    The
    enforcement action was settled when Alton agreed to directly
    discharge
    its waste
    to
    the
    Mississippi River via
    a pipe,
    and
    when Alton and LaClede agreed
    to
    a program to remove
    or treat
    the accumulation of industrial sludge loaded in the impoundment
    area.
    In addition to industrial effluent, during periods
    of high
    water the impoundment area contains significant amounts
    of
    water which seeps through
    the
    levee,
    Evidence presented in
    EPA v. Alton and LaClede,
    supra
    at
    6, projected that during the
    months
    of January through June,
    the new
    twin-60’s
    being constructed
    14—470

    -9-
    by the Corps, which are supposed to drain the impoundment area
    during periods of low-flow in the Mississippi River, will be
    closed 25
    of the time and during the month of April will be
    closed approximately 50
    of the time.
    Because LaClede’s discharges
    into the same impoundment area
    via the drainageway in question
    --
    Shield’s Branch
    --
    the Board’s
    determination in PCB 74-51 removes the support of
    a previous de-
    termination in deciding whether the Mississippi River standards
    of those standards applicable
    to Shield’s Branch apply.
    LaClede Steel
    discharges
    into Shield’s Branch approximately
    2500 feet upstream from Alton Box Board’s discharge (LaClede
    Exhibit 22a).
    Therefore Alton Box Board’s discharge
    is
    in much
    closer proximity to the Mississippi River
    (prior to the closing
    of the twin 60’s).
    However, mere proximity to a larger receiving
    stream does not warrant the application of the larger receiving
    stream’s effluent limitations
    to discharges
    into small
    tributaries
    (Stepan Chemical Company v. EPA,
    PCB
    73-184, January
    24,
    1974).
    In Stepan the Board granted
    a variance in order
    to allow the
    chemical company to construct a discharge
    line directly into the
    Des Plaines River, and remove its discharge from Cedar Creek,
    a
    small
    tributary
    to
    the Des Plaines River.
    In Allied Chemical Corporation
    v.
    EPA
    (PCB
    73-382,
    11-379
    (Feb.
    28, 1974)) the Board determined that in Allied’s particular case the
    naturally occurring depression and its effluent flow should not
    be considered waters
    of the state and that Rule 408 should apply
    (Allied, supra 11-381).
    Allied discharged industrial waste
    through what the Board determined
    to be an industrial ditch
    or sewer for a distance
    of 2,500 feet directly to the Ohio River.
    Allied Chemical owned the lands surrounding the ditch and
    had
    fenced the facility from public access.
    “It will be an
    explicit part of this order that
    the effluent waters shall not
    be used for any recreational, domestic animal watering,
    or
    irrigational purposes.
    Furthermore,
    the land surrounding the
    ditch shall remain closed to the general public.
    Should Allied
    decide to change the use of its land,
    the nature of the depression
    shall be re-evaluated.”
    (Allied, Supra 11-381).
    In Central Illinois Public Service Company v.
    EPA,
    PCB 73-384,
    11-677 (March 28,
    1974) (CIPS),
    the Board determined that McDavid
    Branch of the east
    fork of Shoal
    Creek
    is a water
    of the state and
    that “it is
    a natural accumulation of water that flows
    through the
    State of
    Illinois.
    Though it does not flow for the entire year,
    testimony by Richard Burkeson of Sargeant ~ Lundy Engineers stated,
    “the stream is not and was not navigable when CIPS built the Lake
    (R.
    24), before that time he did notice that there was aquatic-based
    14—471

    -10-
    life
    in
    the
    streamt
    (CIPS
    Supra
    at
    677)
    .
    The Coffeen Lake which was
    formed
    by damming Mcflavid Branch
    was
    held
    to be
    a water
    of the state
    in
    that
    it
    fit
    the definition of waters under the Act because
    it
    is
    “artificial
    and
    private”;
    and
    is
    wholly
    within
    the
    State
    (CIPS
    supra
    at
    677).
    Coffeen
    Lake
    was
    characteri:ed
    as
    a
    large
    accumula-
    tion of McDavid Branch
    which
    contains
    the
    aquatic life
    present
    in
    McDavid Branch (CIPS, supra at
    4)
    Sec~tion
    12(a)
    of the Environmental Protection Act states
    that
    “no person shall cause,
    threaten,
    or allow the discharge of
    any
    con-
    taminant
    into
    the environment
    in any state
    so
    as
    to
    cause or tend
    to
    cause
    water pollution in Illinois, either alone or in combination
    with matters
    from other sources,
    or so
    as
    to violate regulations
    or
    standards
    adopted
    by
    the
    Pollution
    Control
    Board
    under
    this
    Act.”
    Section 3(o) of
    the
    Environmental
    Protection
    Act
    and
    Rule
    104
    of
    Chapter
    3, Water Pollution Regulations
    of
    Illinois,
    further
    define
    “waters” as
    “all accumulations
    of
    water,
    surface
    and
    underground,
    natural and artificial,
    public
    and
    private,
    or
    parts
    thereof
    which
    are wholly or partially within,
    flow
    through,
    or
    border
    upon
    this
    State.”
    It
    is apparent that
    the
    statutory
    definition
    of
    “waters”
    encompasses
    all waters within
    the State.
    Any regulatory scheme
    therefore
    is
    an administrative determination to
    limit this
    statutory broad definition.
    Agency Exhibit
    5 through
    9 clearly show that
    the portion
    of Shield’s Branch upstream from the diversion of
    the Alton
    Sewage Treatment Plant,
    is
    a small watercourse which,
    in its
    lower
    regions, has been channelized.
    These Agency Exhibits
    and testimony
    presented at the hearing lead the Board to the conclusion that this
    portion of Shield’s Branch
    is
    a water of the state.
    Examining
    that portion of Shield’s Branch downstream from the diversion
    darn
    extending to
    the slough area,
    the Board finds
    that
    this channel
    is
    a water of the State.
    Conversion
    to
    a concrete channel and
    channelization does not destroy the protection afforded
    a water
    of the State.
    The discharge of
    a
    large
    industrial water user’s
    effluent into an intermittent stream does not change
    the stream’s
    classification as
    a water of the State.
    In addition, because the projected closing of the new twin-60’s
    will result in the continuation of the impoundment of LaClede’s
    discharge in what has been the impoundment
    area,
    the Board finds
    that LaClede should be required to meet those standards
    applicable
    to discharges into Shield’s Branch not the Mississippi River.
    For the above reasons the Board finds
    that Shield’s Branch
    is
    a water of the State from the rock outcroppings which give
    rise to the initial flow in Shield’s Branch to and through the
    point of the diversion dam,
    to and through the point of LaClede’s
    discharge,
    to and through the point where Shield’s Branch
    discharges
    into the slough or impoundment area,
    and
    to and through
    the point where Shield’s Branch empties
    into
    the Mississippi River.
    Having found that Shield’s Branch
    is
    a water of the State,
    the
    Board further finds
    that Shield’s Branch is currently
    a water
    of the state downstream of the diversion dam located under the
    Owens-Illinois property.
    14—472

    -11-
    To
    hold
    otherwise in this case--that the waters
    of Shield’s
    Branch
    are no longer waters
    of the State, the Board’would be
    embracing
    the
    concept
    that
    withdrawal
    of
    2-1/2
    times
    dry
    weather
    flow destroys or
    removes
    the protection afforded
    a water of the
    State.
    Water Pollution
    Rule 602(c)(2)
    requires that sewage
    treatment plants be capable
    of treatment up
    to
    10
    times
    dry
    weather flow
    by
    December
    31,
    1975.
    Thus,
    the Alton Sewage
    Treatment District
    would
    not be able
    to allow the continued
    overflow
    of combined sewage whenever flow exceeds 2-1/2 times
    dry
    weather
    flow
    in
    Shield’s Branch and comply with Rule
    602(c) (2).
    Federal
    grant
    regulations
    that
    govern
    cost
    effectiveness
    and
    Rule
    602(b)
    of
    the
    Water
    Pollution
    Regulations
    require
    that
    excessive
    infilitration
    and
    storm water flows be prohibited.
    The Board notes
    that
    diverting
    the
    entire
    flow
    of
    the
    stream
    results
    in
    what
    may
    be
    characterized
    as “an excessive infiltration”.
    LaClede’s
    argument
    that
    Shield’s Branch no longer exists
    because
    of
    the
    channelization
    and construction of
    a concrete channel
    is
    rejected
    by
    the
    Board.
    To
    hold
    otherwise,
    the Board would be
    accepting
    the
    argument
    that merely channelizing
    or construction
    of a
    concrete
    culvert,
    reduces
    a stream from
    a water
    of the State to
    some
    nebulous
    lower
    classification.
    Not to
    have
    held that
    Shield’s
    Branch
    was
    a
    water
    of
    the
    State,
    the
    Board
    would
    have
    had
    to
    find
    that
    the
    present
    channel
    of
    Shield’s Branch was
    an
    industrial
    sewer.
    No
    other
    applicable
    classification exists except waters of the
    State and an industrial
    sewer.
    The Board,
    in League of Women
    Voters
    v. NSSD,
    PCB
    71-12,
    14,
    1-369
    (March
    31, l971),’has
    held
    that
    a protected water of the State
    cannot be used as
    a
    treatment work.
    The
    only exception
    is
    for in-stream aeration
    provided for
    in Water Pollution Rule 104.
    The legislature has determined
    that
    it
    is
    in the public
    interest of the health,
    safety,
    and
    general welfare of the
    people
    of the State of Illinois to restrict discharges
    of contaminants
    into waters
    (Section
    2, Environmental Protection Act).
    A body
    of water,
    that
    is
    “a water
    of the State” should not be
    reduced
    to something less than
    a water of the State without action from
    the legislature.
    Shield’s Branch prior to the diversion of dry
    weather flow
    to Alton Sewage Treatment Plant, channelization,
    construction of
    a concrete culvert, and discharges
    of industrial
    waste, was clearly
    a water of the State.
    It remains
    a water
    of the State
    for which the Board will apply regulatory protection.
    The Board finds
    that Shield’s Branch
    is currently an
    intermittent stream.
    Therefore,
    applying Rule
    302(k),
    Shield’s
    Branch could possibly be reclassified a Secondary Contact and
    Indigenous Aquatic Life Waters
    (Secondary Contact), because this
    waterway upstream from the slough would be dry approximately
    300 days per year
    in the absence
    of LaClede’s effluent.
    14
    473

    -12-
    Because the Board found that Shield’s Branch continues
    to exist and
    is
    a water
    of the state, LaClede Steel Company
    has improperly used Rule
    404(b)
    as the design criteria for its
    new treatment plant
    (R.
    230).
    Shield’s Branch
    is
    an intermittent
    stream, and
    is
    a potential secondary contact water.
    An Agency aquatic biologist testified that when LaClede’s treat-
    ment plant was completed and in operation,
    the water quality
    in
    Shield’s Branch downstream of the outfall of LaClede would he
    suffi-
    cient
    to
    support
    a
    balanced
    aquatic
    community
    (R.
    293).
    If
    water
    quality, after the projected removal of contaminants
    by
    LaClede’s
    planned treatment plant, would maintain
    a diversified
    aquatic biota,
    the question remains
    if the physical aquatic environment
    is such that
    it would or would not maintain a diversified aquatic biota.
    In-
    sufficient evidence was presented which
    would convince the Board
    to apply Rule 3.02(k).
    Shield’s Branch or
    the
    impoundment area is
    currently extremely polluted due to discharges
    from Alton Box, LaClede
    and Owens-Illinois.
    Whether
    it
    will maintain a diversified aquatic
    biota absent contaminants remains
    to be proven once Alton discharges
    via a pipe to the Mississippi and the projected treatment systems
    are on line.
    If reclassification were
    to be granted,
    the effluent limitations
    found at Rule 402 and 408 would have to be met because Rule 205
    Restricted Use Standards through Rule
    205(e) requires “concentrations
    of other substances shall not exceed the applicable effluent standards
    prescribed
    in Part
    IV.”
    Currently,
    LaCiede’s discharge has
    to meet
    Rule 203(f)
    limitations because
    of the application of Rule 402 which
    prohibits the violation of water quality standard (Rule 203(f))even
    if the discharge was
    in compliance with
    the effluent standard found
    in Rule
    408(a).
    Regardless
    of reclassification, LaClede Steel must produce
    an effluent which satisfies the BOD and suspended solids standards
    found in Rule 404(f).
    LaClede’s effluent must be treated to
    4 mg/l
    of BOD and
    5 mg/i of suspended solids.
    Dr.
    Tomlinson, LaClede’s
    consulting engineer, testified that the proposed treatment system
    would not reach 4 mg/i
    of BOD.
    He
    testified that to meet the
    4
    mg/i
    BOD
    and S mg/i suspended solids standard of Water Regulation Rule
    404~f),would cost an additional $1.5 million dollars
    (R.
    346).
    He further testified that he had not examined whether the designed
    treatment system would meet the Pfeffer standard of
    10 mg/i BOD
    and 12 mg/i of suspended solids
    (Rule 404(f)(ii))
    (R.
    350).
    An Agency aquatic biologist testified that when LaClede’s
    proposed treatment was
    on line and producing the projected effluent
    found
    in LaClede Exhibit
    16, that Shield’s branch would support
    a balanced aquatic community
    (R.
    293).
    While not controverted
    by LaClede, the record is absent as
    to the expected DO levels
    in Shield’s Branch.
    Assuming this
    to be true,
    LaClede could
    qualify under the Pfeffer exception of Rule
    404(f) (ii) and would
    14—474

    -13-
    thus
    be
    limited
    to
    a
    10
    mg/i
    BOD
    and
    12
    mg/l
    suspended
    solids
    effluent
    restriction.
    LaClede
    currently
    projects
    that their
    treatment
    system
    will produce an effluent of 12 mg/i BOD and
    5
    mg/i
    of suspended
    solids
    (LaClede
    Exhibit
    16).
    Dr.
    Tomlinson
    testified
    that
    he
    had
    not
    examined
    whether the treatment
    system could produce an effluent
    of
    10 mg/l BOD
    (R,
    305).
    de
    further
    stated
    that
    the plant was
    not
    designed
    for
    the
    10-12
    standard
    and
    it
    might
    or might not meet the 10-12 standard
    (B,
    351),
    The
    Board
    finds
    that
    LaClede~s
    discharge
    to
    Shield’s
    Branch
    must
    meet
    the
    4-5
    standard
    of
    Rule
    405(f)
    unless
    LaClede
    can
    demonstrate
    that
    under
    the
    Pfeffer
    exception
    it
    should
    be
    allowed
    a
    10-12
    effluent
    limitation.
    While
    basing
    its
    projected
    treatment
    system
    on
    the
    wrong
    standard,
    LaClede
    has
    taken
    steps
    that
    will
    significantly
    reduce
    environmental
    consequences
    of
    its discharge,
    Therefore,
    the
    Board
    finds
    that
    to deny LaClede
    a variance
    would
    be unreasonable.
    T:~e Board,
    therefore,
    will
    grant
    LaCiede
    a
    variance
    from
    Water
    Bule
    404(f),
    408
    and
    203
    in
    order
    to
    shield
    LaClede
    from
    prose-
    cution
    while
    it
    is
    building
    its
    treatment
    system.
    However,
    this
    variance
    is
    premised
    on
    the
    requirement
    that
    LaClede
    develop
    a treatment system
    to meet the requirements of Rule
    404(f)--an effluent with
    4 mg/l of
    BOI) and
    5 mg/i
    of suspended
    solids--unless
    LaClede
    can
    demonstrate
    that
    Rule 404(f) (ii) should
    be
    invoked
    which
    would
    allow
    LaClede
    10
    mg/I
    of
    BOD.
    LaClede
    will
    also
    be
    required
    to
    maintain
    its present BOD discharge
    of
    12
    mg/l
    (LaClede
    Exhibit
    16)
    ;
    a
    maximum
    suspended solids
    concentration of 100 mg/i
    (LaClede Exhibit
    16, after acid
    recovery)
    ; and the continued operation of
    its oil separation
    facilities.
    This
    Opinion constitutes
    the Board’s findings
    of fact and
    conclusions
    of law.
    Mr.
    Ilenss dissents.
    Mr. Marder will
    file
    a concurring
    Opinion,
    I,
    Christan
    L.
    Moffett,
    Clerk
    of
    the
    Illinois Pollution Coi~troI
    Board,
    hereby certify the above Opinion was
    adopted on the ~
    ~
    day
    of November,
    1974 by
    a vote of
    3._j
    ~
    Illinois Pollution Co
    rol Board
    14—475

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