BEFORE THE ILLINOIS POLLUTION CONTROL BOARD
PEOPLE OF THE STATE OF ILLINOIS,
Complainaht,
V.)
No. PCB 06-36
MAGELLAN PIPELINE COMPANY, L.P.,
a limited partnership,
Respondent.
NOTICE OF
FILING
PLEASE TAKE NOTICE that we have today, December 8, 2005,
filed with the Office of the Clerk of the Illinois Pollution
Control Board a Stipulation and Proposal for Settlement, and
Motion to Waive the Requirement of a Hearing, by electronic
filing.
Copies of these documents are attached.
Respectfully submitted,
PEOPLE OF THE STATE OF ILLINOIS
LISA
GAN
Attorn
General
the
S e
Illinois
BY:
CHRIS PEER GRANT
Assi ant Attorney General
Environmental Bureau
188 W. Randolph St.,
2
0
th
Flr.
Chicago, IL 60601
(312) 814-5388
ELECTRONIC FILING, RECEIVED, CLERK'S OFFICE, DECEMBER 8, 2005
BEFORE THE ILLINOIS POLLUTION CONTROL BOARD
PEOPLE OF THE STATE OF ILLINOIS,
Complainant,
V.)
No. PCB 06-36
MAGELLAN PIPELINE COMPANY, L.P.,
a limited partnership,
Respondent.
STIPULATION ANlD 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 MAGELLAN
PIPELINE COMPANY, L.P. ("Respondent"), 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 statement 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 herein, shall be
introduced into evidence in any other proceeding regarding the
ELECTRONIC FILING, RECEIVED, CLERK'S OFFICE, DECEMBER 8, 2005
claims asserted in the Complaint 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 matter herein and
of the parties consenting hereto pursuant to the Illinois
Environmental Protection Act ("Act"), 415 ILCS 5/1 et
seq.
(2004).
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 September 6, 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 of the Illinois EPA, pursuant to Section 31 of the Act,
415 I.LCS 5/31 (2004), against the Respondent.
2.
The Illinois EPA is an administrative agency of the
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ELECTRONIC FILING, RECEIVED, CLERK'S OFFICE, DECEMBER 8, 2005
State of Illinois, created pursuant to Section 4 of the Act, 415
ILCS 5/4 (2004).
3.
At all'times relevant to the Complaint, Respondent was,
and
is, a limited partnership.
The general partner of Magellan
Pipeline Company L.P. is Magellan Pipeline GP, LLC, a Delaware
limited liability company that is authorized to transact business
in the State of Illinois.
B.
Site Description
1.
At all times relevant to the Complaint, Respondent
owned and operated a petroleum product storage and distribution
facility located at 1222 U.S. Route 30, Am-boy, Lee County,
Illinois ("site").
2.
During July, 2004, Respondent generated waste from
storage tank restoration activities at the site.
The waste
included hazardous waste in the form of styrofoam contaminated
with benzene.
I3.
On July 20, 2004, the benzene-contaminated styrofoam
was disposed of at Prairie Hill Recycling and Disposal ("Prairie
Hill")
,
a municipal solid waste landfill located in Whiteside
County, Illinois.
Prairie Hill is not permitted for the disposal
of hazardous waste.
4.
On July 22, 2004, the benzene-contaminated styrofoam
was removed from Prairie Hill and disposed of at a permitted
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ELECTRONIC FILING, RECEIVED, CLERK'S OFFICE, DECEMBER 8, 2005
hazardous waste facility.
C.
Allegations of Non-Compliance
Complainant contends that the Respondent has violated the
following provisions of the Act and Board regulations:
Count I:
IMPROPER DISPOSAL OF HAZARDOUS WASTE, in
violation of Section 21(e) of the Act, 415 ILCS
5/21 Ce)
(2004)
Count
II:
FAILURE
TO
PREPARE
A
HAZARDOUS
WASTE
MANIFEST,
in
violation of Section 21(f) (2) of the Act, 415
ILCS 5/21(f) (2) (2004), and 35 Ill. Adm. Code
722.120 (a)..
Count III:
OFFERING HAZARDOUS WASTE TO A FACILITY THAT DOES
NOT HAVE AN EPA IDENTIFICATION NUMBER, in
violation of Section 21(f) (2)of the Act, 415 ILCS
5/21(f) (2) (2004), and 35 Ill. Adm. Code 722.112.
Count IV:
VIOLATION OF BOARD WASTE EVALUATION REQUIREMENTS,
in violation of Section 21(f) (2)of the Act, 415
ILCS 5/21(f) (2) (2004), and 35 Ill. Adm. Code
Sections 722.111, 728.109(a),' and 728.109(c).
D.
Admission of Violations
The Respondent neither admits nor denies the violations
alleged in the Complaint filed in this matter and referenced
herein.
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
4.
ELECTRONIC FILING, RECEIVED, CLERK'S OFFICE, DECEMBER 8, 2005
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
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;
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ELECTRONIC FILING, RECEIVED, CLERK'S OFFICE, DECEMBER 8, 2005
4.
the technical practicability and economic
reasonableness of reducing or eliminating the
emissions, discharges or deposits resulting from
such pollu tion source; and
5.
any subsequent compliance.
In response to these factors, the parties state the
following:
1.
The alleged violations threatened human health and the
environment by placement of hazatdous waste within a landfill not
qualified to manage hazardous waste.
2.
There is social and economic benefit to Respondent's
activities at its facility.
3.
Respondent's petroleum storage and distribution
activities are appropriate at the site, provided Respondent
manages waste generated for its activities in accordance with the
Act and pertinent waste disposal regulations.
4.
Disposal of hazardous waste at a properly permitted
facility is both technically practicable and economically
reasonable.
S.
The waste Styrofoam was removed from the Prairie Hill
landfill and disposed of at a properl y permitted facility.
Respondent has revised its waste handling procedures and
instituted policies that reduce the risk of the inadvertent
disposal of hazardous waste at an unpermitted facility.
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ELECTRONIC FILING, RECEIVED, CLERK'S OFFICE, DECEMBER 8, 2005
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
mitigation or aggravation of penalty, including but not
limited to the following factors:
1.
the duration and gravity of the violation;
2.
the pres'ence 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 biought under this Act, but
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ELECTRONIC FILING, RECEIVED, CLERK'S OFFICE, DECEMBER 8, 2005
which the respondent is not otherwise legally
required to perform.
In response to these factors, the parties state as follows
1.
Complainant has alleged that the violations continued
from July 20, 2004 until July 22, 2004.
2.
Once Respondent was notified of the improper hazardous
waste disposal, Respondent revised internal policies to reduce
the chance of a repeat incident.
Therefore Respondent
demonstrated diligence by reducing the possibility of future
violations. The waste Styrofoam has been disposed of at a
properly permitted facility.
3.
Respondent gained some economic benefit from shipm6nt
of hazardous waste to a municipal solid waste landfill.
However,
Respondent subsequently paid.for a second disposal at a hazardous
waste management facility, and therefore did not retain any
economic benefit from improper disposal.
4.
Complainant has determined, based upon the specific
facts of this matter, that a penalty of.Eighteen Thousand Dollars
($18,000.00) 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 no
previously adjudicated violations of the Act.
6.
Self-disclosure is not at issue in this matter.
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ELECTRONIC FILING, RECEIVED, CLERK'S OFFICE, DECEMBER 8, 2005
7.
The settlement of this matter does not include a
supplemental environmental project.
VIII. TERMS OF SETTLEMENT
A.
Penalty Payment
1.
The Respondent shall pay a civil penalty in the sum of
Eighteen Thousand Dollars ($18,000.00) 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 prescribed
below. The penalty 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 and submitted to:
Illinois Environmental Protection Agency
Fiscal Services Section
1021 North Grand Avenue East
P.O. Box 19276
Springfield, IL 62794-9276
The name and number of the case and Respondent's Federal
Employer Identification Number (FEIN), shall appear on the check.
A copy of the certified check, money order or record of
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ELECTRONIC FILING, RECEIVED, CLERK'S OFFICE, DECEMBER 8, 2005
electronic funds transfer and any transmittal letter shall be
sent to:
CHRISTOPHER GRANT
Assistant Attorney General
Environmental Bureau
188 W. Randolph St.,
2
0 th
Floor
Chicago, Illinois 60601,
and,
PAUL JAGIELLO
Assistant Counsel
Illinois Environmental Protection Agency
9511 West Harrison
Des Plaines, IL
60016
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
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, the Respondent
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ELECTRONIC FILING, RECEIVED, CLERK'S OFFICE, DECEMBER 8, 2005
may be reached at the following address:
Mr. Paul Pratt
Magellan Midstream Partners, L.P.
One Williams Center
P.O. Box 22186
Tulsa, Oklahoma 74121-2186
4.
In the event of default of this Section VTII.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 UBe
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 VTII.D, below, the Respondent
hereby agrees that this Stipulation may be used against the
Respondent in any subsequent enforceme nt 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 ILCS
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.
ELECTRONIC FILING, RECEIVED, CLERK'S OFFICE, DECEMBER 8, 2005
C.
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 TTT.C ("Allegations of Non-
Compliance") of this Stipulation.
D.
Release from Liability
In consideration of the Respondent's payment of the Eighteen
Thousand Dollar ($18,000.00) penalty and any specified costs and
accrued interest, commitment to Cease and Desist as contained in
Section VIII.C 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. The release set forth above does not extend
to any matters other-than those expressly specified in
Complainant's Complaint filed on September 6, 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,
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ELECTRONIC FILING, RECEIVED, CLERK'S OFFICE, DECEMBER 8, 2005
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.
E.
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
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ELECTRONIC FILING, RECEIVED, CLERK'S OFFICE, DECEMBER 8, 2005
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
competent jurisdiction to be inconsistent with state or federal
law, and therefore unenforceable, the remaining clauses shall
remain in full force and effect.
WHEREFORE, Complainant and Respondent request that the Board
adopt and accept the foregoing Stipulation and Proposal for
Settlement as written.
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ELECTRONIC FILING, RECEIVED, CLERK'S OFFICE, DECEMBER 8, 2005
PEOPLE OF THE STATE OF ILLINOIS,
LISA MADIGAN
Attorney General
State of Illinois
MATTHEW J. DUNN, Chief
Environmental Enforcement/
Asbestos Litigation Division
BY:
L-AE
Assistant Atre
ee
ILLINOIS ENVIRONMENTAL PROTECTION
AGENCY
BY
DATE:
(t
Chief Legal Counsel
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ELECTRONIC FILING, RECEIVED, CLERK'S OFFICE, DECEMBER 8, 2005
MAGELLAN PIPELINE COMPANY, L.P,
by
Magellan Pipeline GP, LLC, its
General Partner
BY:
__
_
_
_
_
_
_DATE:
/1
2-3
-0
£
Name:
[~&~~62
1
u.,©
Title:
61/rce-y~9
16
ELECTRONIC FILING, RECEIVED, CLERK'S OFFICE, DECEMBER 8, 2005
BEFORE THE ILLINOIS POLLUTION CONTROL BOARD
PEOPLE OF THE STATE OF ILLINOIS,
Complainant,
V.)
No. PCB 06-36
MAGELLAN PIPELINE COMPANY, L.P..,
a limited partnership,
Respondent.
CERTIFICATE OF SERVICE
I, CHRISTOPHER GRANT, an attorney, do certify that I caused
to be served this 81h day of December, 2005, the -foregoing
Stipulation and Proposal for Settlement, Motion to Waive the
Requirement of a Hearing, and Notice of filing, upon the persons
listed below by placing same in an envelope bearing sufficient
postage with the United States Postal Ser ice loca ed at
100
W.
Randolph, Chicago Illinois.
CHRISTOPHER GRANT
Service List:
Mr Gabriel G. Orenic
Mr. John Spesia
Spesia, Ayers, & Ardaugh
1415 Black Road
Joliet, IL 60435
Mr. Bradley P. H-alloran
Hearing off icer
Illinois Pollution Control Board
100 W. Randolph Drive
Chicago, Illinois 60601 (hand delivery) (Notice of Piling only)
ELECTRONIC FILING, RECEIVED, CLERK'S OFFICE, DECEMBER 8, 2005
