ILLINOIS POLLUTION CONTROL BOARD

U.

S.

INDUSTRIAL CHEMICALS COMPANY,)

a Division of National Distillers

and Che~nicalCorporation,

PCB

71—44

V.

ENVIRONMENTAL PROTECTION AGENCY

PERFORMANCE

BOND

KNOW

ALL

MEN

BY

THESE PRESENTS THAT WE,

U.

S.

Industrial

Chemicals

Company

(the

“Company”),

and

(the “Surety”),

are hereby held

and firmly bound to the Environmental

Protection Agency of the State of Illinois

(the “Agency”)

in the sum

of

$500,000.00,

for the payment of which we bind ourselves

and our

successors

and assigns.

The condition of this obligation

is such that:

WHEREAS,

an Order and ,accompanying Opinion has heretofore

been entered

in the above—entitled case

(the

“Order”)

by the Illinois Pollution Con-

trol Board

(the “Board”)

granting the Company

a variance to emit parti-

culate matter, gases and other contaminants from sources described in

the Order beyond the limitations prescribed in applicable

rules

and regu-

lations

and beyond the proscriptions

of Section 9(a)

of the Environmental

Protection Act pending installation

of certain control devices and faci-

lities, which Order is by reference incorporated therein;

and

WHEREAS,

said Order was conditioned,

among other things, upon the

posting with

the Agency by

the Company of a bond in the amount of

$500,000.00, which amount shall be forfeited

to the State

of Illinois in

the event that the Company shall

fail to comply with any of the conditions

of the Order or any of the conditions of

this bond.

NOW,

if the Company,

its successors

and assigns,

shall:

1.

Cease operation of the sulphuric acid plant by March

30,

1972;

AND

Install and have

in operation by May

30,

1972,

two additional

electrostatic precipitators on its coal—fired boilers;

or so

operate said two boilers after May

30,

1972

so that emissions

from said two boilers shall not exceed the allowable

limits

of the Rules

and Regulations Governing the Control of Air

Pollution.

3

—

510

---

2.

Comply with all further conditions of the Order within the

dates specified in the Order;

and

3.

Show this obligation

as

a liability in all of its corporate

financial statements prepared for shareholders

and in

all of its

cor-

porate

reports to regulatory agencies published hereafter;

then

this

obligation shall be void;

otherwise

it shall remain in

full, force and

effect.

PROVIDED

THAT

failure

of

the

Company

to

comply

with

any

term

of

this bond shall not result

in any forfeiture if occasioned by Act of God

or the public enemy,

accidental fire or explosion,

flood, war,

riot,

sabotage,

accident,

government priority or other action by

any state

or federal governmental

authority or local governmental agency other

than

relating to pollution control,

strike,

slowdown,

lockout,

or work stoppage

or labor trouble of any kind whatsoever,

failure of supply of materials,

parts,

or equipment,

or failure,

delay, or refusal of any designer,

fabricat~r, or supplier to design,

fabricate,

deliver or install

as

agreed

any equipment specified herein,

provided such failure,

delay,

or refusal is not due

in whole or in part to fault of

the company,

or

if occasioned by any other circumstance, whether of like character

or different character from those enumerated above, which circumstance

is beyond the reasonable control of the Company.

The Board shall be

the determiner of

any disputed

facts arising here-

under,

including but not limited to any issue of forfeiture which may

arise.

Should the Agency decide that grounds exist for

a forfeiture

of this obligation,

the Agency shall notify the Company and the Surety by

Certified

Mail

to the addresses listed below,

whereupon the Company

shall, within seven days

after receipt of said notice,

pay

to the

State of Illinois through the Agency,

the amount of $500,000.00; provided,

however,

that

if the Company disputes

any alleged forfeiture hereunder

by filing, within seven days after receipt of said notice,

a Petition

for relief with the Board,

any amounts

to be paid hereunder shall not be

due and payable until

resolution of all issues of forfeiture by the

Board;

and provided further that no such legal proceeding may be brought

by the Agency unless initiated within six months from the

time of dis-

covery of the grounds giving rise to such claimed forfeiture.

Provisions

of the Environmental Protection Act and Procedural

Regulations of

the

Board regarding the conduct of proceedings before it shall govern the

conduct of the disputed forfeiture hearing.

Any determination by the

Board pursuant to this instrument

is subject to the right of review

thereof

as provided by

law.

Notice to the Agency shall be

to:

3

—

571

---

.

.