3 APRIL 2007 AMENDED NOTICE OF VIOLATION FOR VRUC

Mitchell E. Daniels, Jr.,
Governor
100 N Senate Avenue I
Indianapolis, Indiana 46204-2251
(800) 451-6027(317) 232-8603
www.IN.gov/idem

Thomas W Easterly
Commissioner

Via Certified Mail #:

To: Jerry Hacker, President
Valley Rural Utility Company
19435 Alpine Drive
Lawrenceburg, IN 47025

To: L. Parvin Price, Esq., Registered Agent
for Valley Rural Utility Company
Bose McKinney & Evans, LLP
135 N. Pennsylvania Street
Suite 2700
Indianapolis, IN 46204

AMENDED NOTICE OF VIOLATION
Case No. 2006-15965-W

Based on an investigation conducted by the Indiana Department of Environmental Management (“IDEM”), there is reason to believe that Valley Rural Utility Company (“Respondent”) has violated environmental rules, statutes, and its Operational Permit. The violations are based on the following:

1. The Respondent owns and operates a private 100% sanitary sewer collection system, including numerous lift stations and manholes, and flow equalization basin, which serves the Hidden Valley Lakes Subdivision, located at 19435 Alpine Drive, in Lawrenceburg, Dearborn County, Indiana (the “Site”).

2. The Respondent is authorized by its Operational Permit Number INU043168 (the “Permit”) to manage and operate its wastewater collection system for all domestic wastewater from the Valley Rural Utility Company Service Area (approximately 1,700 single-family homes at the Site). Wastewater is pumped via lift stations to the City of Greendale Utility Collection System, to the South Dearborn Regional Sewer District’s wastewater treatment plant (“WWTP”) for treatment, which is then discharged to the Ohio River. The Permit expressly prohibits the discharge of wastewater from the Respondent’s collection system.

3. Pursuant to 327 Indiana Administrative Code (“IAC”) 5-2-8(1), and Part II.A.1 of the permit, the Respondent is required to comply with all terms and conditions of the permit. Any permit noncompliance constitutes a violation of the Clean Water Act and Indiana Code (“IC”) 13, and is grounds for enforcement action or permit termination, revocation and re-issuance, modification, or denial of a permit renewal application.

4. Pursuant to 327 IAC 5-2-2, any discharge of pollutants into waters of the state as a point source discharge, except for exclusions made in 327 IAC 5-2-4, is prohibited unless in conformity with a valid National Pollutant Discharge Elimination System (“NPDES”) permit obtained prior to the discharge.
5. From the effective date of the Permit on December 1, 1997, until it expired on October 31, 2002, the Respondent was authorized to operate its sanitary sewer system at the Site. After the Permit expired, the Respondent continued to comply with the Permit’s monthly reporting requirements but has discharged its waste from the Site to Double Lick Creek and/or Hidden Valley Lake, which are waters of the state, without a valid Permit, and failed to timely renew the Permit, and therefore remains in violation of 327 IAC 5-2-2.

6. Pursuant to Part I.A.1 of the Permit, the Respondent is required to monitor and report all discharges from the six (6) overflow points identified by the Permit that are present in the Respondent’s sanitary sewer system that are expressly prohibited from discharging at any time and comply with monitoring and reporting requirements contained in Part I.A.1 of the Permit.

7. Pursuant to Part I.A.2 of the Permit and 327 IAC 2-1-6(a)(1), all waters at all times and at all places, including the mixing zone, shall meet the minimum conditions of being free from substances, materials, floating debris, oil or scum attributable to municipal, industrial, agricultural, and other land use practices, or other discharges:

(A) that will settle to form putrescent or otherwise objectionable deposits;
(B) that are in amounts sufficient to be unsightly or deleterious;
(C) that produce color, visible oil sheen, odor, or other conditions in such degree as to create a nuisance;
(D) which are in amounts sufficient to be acutely toxic to, or to otherwise severely injure or kill aquatic life, other animals, plants, or humans; and
(E) which are in concentrations or combinations that will cause or contribute to the growth of aquatic plants or algae to such degree as to create a nuisance, be unsightly or other wise impair the designated uses.

8. Pursuant to IC 13-30-2-1(1), a person may not discharge, emit, cause, allow or threaten to discharge, emit, cause, or allow any contaminant or waste, including any noxious odor, either alone or in combination with contaminants from other sources, into the environment.

9. Pursuant to IC 13-18-4-5, it is unlawful for any person to throw, run, drain, or otherwise dispose into any of the streams or waters of Indiana; or cause, permit, or suffer to be thrown, run, drained, allowed to seep, or otherwise disposed into any waters; any organic or inorganic matter that causes or contributes to a polluted condition of any waters, as determined by a rule of the board adopted under sections 1 and 3 of this chapter.

10. During IDEM’s record review for the period from January 2004 to March 2007, the Respondent reported twenty-eight (28) separate overflows and/or bypasses of treatment from its sanitary sewer system to Double Lick Creek and/or Hidden Valley Lake, which are waters of the state, in violation of Part I.A.1 and Part I.A.2 of the Permit and 327 IAC 2-1-6(a)(1), and thus violating IC 13-30-2-1(1) and IC 13-18-4-5.

11. Pursuant to Part II. A.5 of the Permit and 327 IAC 2-1.5-8, the Respondent is required, at all times, to maintain all facilities, in good working order and operate all facilities as efficiently as possible and in a manner which will minimize upsets and discharges of excessive pollutants.
12. The Respondent failed to maintain compliance with the Permit and therefore remains in violation of Part II. A.5 of the Permit and 327 IAC 2, IC 13-30, IC 13-18, and 327 IAC 5.

13. Pursuant to Part II. A.7 of the Permit and 327 IAC 2-1.5-8, any diversion or overflow from the wastewater collection system is prohibited, except where unavoidable to prevent loss of life, personal injury, severe property damage, or there is not feasible alternative to the overflow event.

14. The Respondent reported twenty-eight (28) separate overflows and/or bypasses of treatment from its sanitary sewer collection system, to Double Lick Creek and/or Hidden Valley Lake, which are waters of the state. The Respondent’s reported overflows from the wastewater collection system are prohibited and do not meet the exceptions set forth in Part II.A.7 of the Permit or the exclusions listed in 327 IAC 5-2-4. Therefore, the Respondent remains in violation of Part II. A.7 of the Permit and 327 IAC 2-1.5-8.

In accordance with IC 13-30-3-3, the Commissioner herein provides notice that violations may exist and offers an opportunity to enter into an Agreed Order providing for the action required to correct the violations and for the payment of a civil penalty. The Commissioner is not required to extend this offer for more than 60 days.

As provided in IC 13-30-3-3, an alleged violator may enter into an Agreed Order without admitting that the violations occurred. IDEM encourages settlement by Agreed Order, thereby resulting in quicker correction of the environmental violations and avoidance of extensive litigation. Timely settlement by Agreed Order may result in a reduced civil penalty. Also, settlement discussions will allow the opportunity to present any mitigating factors that may be relevant to the violations.

If an Agreed Order is not entered into within sixty (60) days of receipt of this Notice of Violation, the Commissioner may issue a Notice and Order under IC 13-30-3-4 containing the actions that must be taken to correct the violations and requiring the payment of an appropriate civil penalty. Pursuant to IC 13-30-4-1, the Commissioner may assess penalties of up to $25,000 per day for each violation.

Please contact Aletha Lenahan at (317) 232-8407, within fifteen (15) days after receipt of this Notice to discuss resolution of this matter.


For the Commissioner:



Date: April 3, 2007 Signed by: Lori Kyle Endris
Lori Kyle Endris
Chief
Office of Enforcement