ILLINOIS

ENVIRONMENTAL

PROTECTION

AGENCY

1021

North Grand Avenue East,

P.O.

Box 19276,

Springfield, Illinois

62794-9276

Mary A.

Gade, Director

217/785-0830

TDD

217/782-91~

0

k1•~’L)

rIw3~9

7

January

16, 1998

Mr. John Prior

Mr. John Prior

individually and dlb/s

- .~,

.,.

wwa

Registered Agent for

Prior Oil Company

Prior Oil Company

Prior-Carlyle, Inc.

140

Gompers

421

North Morrison

Route 51,

South

Wamac, Illinois

62801

Central City, Illinois

62801

Centralia, Illinois

62801-0821

Re:

VIOLATION NOTICE E-1998-00002

Environmental Release Incident 971314

Attributable to John Prior, individually and d/b/a Prior Oil Company,

Date Incident Discovered: July 21, 1997

Wamac, Marion County, Illinois

Dear Mr. Prior:

This

constitutes

a

Violation Notice pursuant

to

Section

31 (a)(1) of the Illinois

Environmental

Protection Aôt (“Act”), 415 ILCS

5/31 (a)(1), and is based upon review ofavailable information and

investigation by representatives ofthe Illinois Environmental Protection Agency

(“Illinois EPA”).

The

Illinois

EPA hereby provides

notice

of violations of environmental

statutes,

regulations

or

permits

as

set forth

in Attachment

1

to this letter.

Attachment

1

includes an

explanation of the

activities

that Illinois

EPA believes may resolve the specified violations,

including an estimate of

a reasonable time period for completion ofthe necessary activities.

However, due to the nature and

seriousnessofthe violations cited in Attachment 1, please be advisedthat resolution ofthe violations

may require the involvement of a prosecutorial authority for purposes that may include,

among

others, the imposition ofstatutory penalties.

A

written response to

this

Violation

Notice, which

may

include

a

request for a

meeting with

representatives ofthe Illinois EPA, must be

submitted via certified mail to the Illinois EPA within

45

days ofreceipt ofthis letter.

The response must address each violation specified in Attachment

1

and include foreach an explanationofthe activities that will be implemented and the time schedule

for the completion of that activity.

The written response will constitute a proposed Compliance

Commitment Agreement (“CCA”) pursuant to

Section

31

ofthe Act.

The Illinois EPA will review

the proposed CCA andwill accept orreject it within 30 days ofreceipt.

PEOPLE’S

EXHIBIT

13

TI~

O2~-/T7

Printed

on

Recycled

Paper

CERTIFIED MAIL

RETURN

RECEIPT REQUESTED

---

VIOLATION NOTICE E-1998-00002

PAGE2

If a timely written response to this Violation Notice is not provided, it shall be considered a waiver

ofthe opportunity to respond and to

meet,

and the Illinois EPA may proceed with a referral to a

prosecutorial authority.

The Illinois EPA encourages the use of pollution prevention methods to help achieve compliance

with

environmental

requirements.

By

switching

to

nonhazardous

raw

materials,

improving

housekeeping practices or changing production processes to generate less pollution or waste, you

may

be able to

save money, increase efficiency and possibly reduce regulatory requirements.

Writtencommunications should be directedto the

OfficeofChemical Safety/Emergency Response

Unit,

at

1021

North Grand Avenue East,

Springfield, Illinois 62702.

All

communications must

include reference to this Violation Notice E-1998-00002.

Procedural questions regarding this

matter should be

directed to the

Office of Chemical Safety,

Compliance Specialist at (217) 557-1913.

Sincerely,

James Patrick O’Brien

Manager, Office ofChemical Safety

attachment

H:\Waligore’PriorOiWN

---

Prior Oil

Violation Notice .E-l998-0002

Environmental Incident Release 971314

bcc: John Waligore

Cheryl Kelley

VN File

---

VIOLATION NOTICE E-1998-0002

PAGE 1

ATTACHMENT

1

Environmental Release Incident 971314

Attributable to John Prior, individually and d/b/a Prior Oil Co., and/or Prior-Carlyle, Inc.

Date Incident Discovered:

July 21,

1997

Wamac, Marion County, Illinois

ATTACHMENT

1

I.

Description of Violations

On

or before

July 21,

1997,

John

Prior, individually and d/b/a Prior Oil Company, and/or Prior-

Carlyle, Inc. (collectively, “Prior”) caused or allowed an estimated 31-48 barrels

of

crude oil to

be

released at and from a tank battery operated by Prior on property which is part of the City Park, in

Wamac, Marion County, Illinois.

The contaminants from incident 971314 breached the inadequate

earthen firewall surrounding the tank battery and entered Fulton Creek and Sewer Creek,

eventually

causing a

sheen,

which

extended

approximately three miles from the

spill

site.

Although

Prior

alleged that lightning was the

cause ofthe release,

a representative of the Illinois Environmental

Protection Agency (“Illinois EPA”)

never observed any

tank damage consistent with a lightning

strike.

The Illinois EPA representative was present at the site on July 22,

1997, July 28,

1997 and

September 11,

1997.

At the time ofthe first visit, strong odors from the crude oil which had been

released were

observed by the Illinois

EPA.

Illinois

EPA also observed

neighborhood children

playing

in the crude oil in the creek, indicating the direct impact

on the public this release had.

During both the July 22,

1997 and July 28,

1997

visits, the Illinois EPA

also observed continued

drainage ofresidual Oil from the spill into Fulton

Creek, and visibly impacted foliage.

During the

September

11,

1997 visit, Illinois EPA observed that two inches ofstanding oil were still present in

the containment around the

“gun barrel” tank that had the release.

Illinois EPA was contacted by

citizens and City ofWamac officials complaining about release 971314.

Despite being advised by

the Illinois EPA that he should actively seek to

collect as much as possible ofthe spilled oil from

the creeks,

soil,

vegetation, etc., Prior

did nothing else to address off-site contamination besides

implementation of strawbales

and a few “booms” provided by Illinois EPA.

The

release

impacted

air,

soil,

surface

water

and

potentially

groundwater.

According

to

the

information available to

Illinois EPA, residual crude oil contamination remains in the

soil, creek

sediments

and, potentially groundwater in the area around where the spill occurred, and constitutes

an

on-going source

of releases and threats of releases to

waters of the

State

(surface

water and

groundwater).

Releases of contaminants, including odors, to the air, constitute violations of Section (9)(a) of the

---

Page 2

Attachment

1

Act,

which

prohibits

causing

or

allowing

air pollution.

Releases

or the

threat

of releases

of

contaminants to surface water and/or groundwater constitute violations ofSection

12(a) and (d) of

the Act, which prohibits

causing or allowing the release of contaminants to

waters of the

State.

Releases which impacted soil and land surface may constitute open dumping under Section 21(a)

ofthe Act.

II.

Text ofSections 9(a), 12(a) and (d) and

21(a) of the Illinois Environmental Protection

Act.

Section 9(a)

No person shall:

a.

Cause

or

threaten

or

allow

the

discharge

or

emission

of

any

contaminant

into

the

environment in any State so as to cause or tend to cause airpollution in Illinois, either alone

or in combination with contaminants from other sources, or so as to violate regulations or

standards adopted by the Board under this Act;

Section

12(a)

and (d)

No person shall:

a.

Cause or threaten or allowthe discharge of any contaminants into the environment in any

State so as to cause or tend to cause waterpollution in Illinois,

either alone or in combination

with matter from other sources or so as to violate regulations or standards adopted by the

Pollution Control Board under this

act.

d.

Deposit any contaminants upon the land in such place and manner so as to create a water

pollution hazard.

Se~ion21(a)

person shall:

a.

Cause or allow the open dumping ofany waste.

III.

Narrative Description of Activities Recommended by Illinois

EPA for Resolution of

Violations

The Illinois EPA’s Office ofChemical Safety recommends that

Prior include all

activities described

below as part ofa proposed Compliance Commitment Agreement relative to the release cited herein.

The

Office of Chemical

Safety believes

that

activities

1

and 2

described below

(conduct of an

investigation into cause(s) ofthe release; conduct ofa focused site investigation) can reasonably be

completed by Prior with appropriate reports submitted to the Illinois EPA within 45

days ofyour

receipt ofthis Violation Notice.

The Illinois EPA requests that Prior provide an estimated schedule

---

Page

3

Attachment

1

for completion ofeach activity recommended below.

The Illinois EPA recognizes that the schedule

for activities

3 through

5 will be dependent on the results ofactivities

1

and 2, and that adjustments

to the time schedule proposed for activities

3 through

5

may be appropriate at a later date.

Conduct

a thorough investigation by knowledgeable personnel into the

cause or causes of

the release and how such releases can be prevented

or precluded in the future.

This

inyestigation

may

be

conducted

in

accordance

with.

the

enclosed

“Com-pliance

Documentation Guide I

-

Criteria for Investigation ofCausal Factors

and Development of

Preventive Responses (“Guide I”),” which is provided for yOur convenience.

Illinois EPA

recommends that a comprehensive report ofthat investigation

and recommended corrective

actions be submitted to the Office ofChemical Safety ofthe Illinois EPA within 45

days of

your receipt ofthis Violation Notice.

2.

Conduct

a

focused

site

investigation

at the

emergency incident

site with

respect to

the

material

released and any other material or conditions that affect the mobility and

enhance

the toxicity ofthe material released.

The site investigation may address the criteria cited in

the enclosed “Compliance Documentatjon Guide B-Criteria for focused Site Investigation

and Remedial Action Plan at EmergencyIncident Sites (“Guide B”)”, which

is. provided for

your convenience.

Illinois EPA recommends that an investigation report be prepared for the

site in accordance with Guide B

and be submitted to the Office of Chemical Safety within

45 days ofyour receipt ofthis Violation Notice.

3.

Determine

remediation objectives

in

accordance

with

Guide

B

and

the

documents, and

regulations

cited therein.

A remediation objectives report should be prepared in accordance

with

Guide

B

and

submitted to

the Office of Chemical Safety for review. Prior

should

indicate a proposed date for submission ofthis report.

4.

Prepare

a remedial action plan in accordance with

Guide

B

to

address contamination at

locations where the contamination conCentration exceeds the remediation objectives which

have been approvedby the Office.ofChemical Safety for the incidentlocation.

Theremedial

action plan should be submitted to the Office ofChemical Safety for review in advance of

implementation.

Prior

should indicate a proposed date for submission of

this

remedial

action plan.

The remedial action plan should also contain an implementation schedule.

The

Office ofChemical Safety may agree in writing to amendments to portion of the schedule

as

requested by, if conditions

during

implementation justify this.

Note:

If the

remedial

action is expected to exceed three months, the plan should include a schedule for detailed

quarterly reports ofprogress.

The content of suchreports should be proposed in the remedial

action plan.

---

Page 4

Attachment

1

5.

Prepare a remedial action

completion

report at the

completion

of the

accepted remedial

action plan.

The remedial action completion

report should be submitted to the Office of

Chemical Safety by the date proposed in the accepted remedial action plan.

The remedial

action completion reportmay by prepared

in accordance with “Compliance Documentation

Guide

C-Criteria for Remedial Action Report at Emergency Incident

Sites

(“Guide C”)”,

which is provided foryour convenience.