EPA v. GALLATIN STEEL COMPANY

Case summary

THIS PROPOSED CIVIL ACTION AGAINST GALLATIN STEEL COMPANY ALLEGES SIX CAUSES OF ACTION BASED ON THREE TYPES OF VIOLATIONS: (1) THAT GALLATIN EXCEEDED ITS MINOR SOURCE PERMIT LIMIT FOR NITROGEN OXIDES (NOX) AND CARBON MONOXIDE (C0) OUT OF ITS ELECTRIC ARC FURNACES (EAFS); (2) STARTED UP THE EAFS WITHOUT OPERATING ITS CONTROL EQUIPMENT IN VIOLATION OF ITS PERMIT; AND (3) CIRCUMVENTED THE CLEAN AIR ACT'S REQUIREMENTS TO ASSURE PREVENTION OF SIGNIFICANT DETERIORATION (PSD) OF AIR QUALITY. A CIVIL ACTION AGAINST GALLATIN FOR THE PERMIT AND PSD VIOLATIONS IS AUTHORIZED BY SECTIONS 113(B)(2) AND 167 OF THE CAA. THE ACTION WOULD SEEK RELIEF IN THE FORM OF CIVIL PENALTIES AND INJUNCTIVE RELIEF TO REQUIRE CONTROL EQUIPMENT FOR THE FURTHER EXPANSION PLANNED AT THE FACILITY. THE TOTAL UNADJUSTED PENALTY SOUGHT IS $891,000. IF IT IS DETERMINED THAT SUFFICIENT EVIDENCE IS AVAILABLE TO INCLUDE A PSD CIRCUMVENTION COUNT IN THE COMPLAINT, THIS ACTION WOULD BE THE FIRST PSD CIRCUMCENTION CASE FOR WHICH CIVIL ACTION HAS BEEN SOUGHT BY EPA EXTABLISHING NATIONAL PRECEDENT IN THIS AREA OF ENVIRONMENTAL ENFORCEMENT FOR THE AGENCY. HOWEVER, BECAUSE THERE IS NO CASE LAW ON PSD CIRCUMVENTION AND BECAUSE PROOF OF PSD CIRCUMVENTION IS BASED ON THE SOURCE'S INTENT, THIS ASPECT OF THE CASE PREVENTS HIGH LITIGATION RISKS. IN ADDITION, THERE IS AN ONGOING ADMINISTRATIVE ACTION AGAINST GALLATIN FOR EXCESS EMISSIONS FROM THE REHEAT FURNACES AND VIOLATIONS CONCERNING CONSTRUCTION OF THE COOLING TOWERS. GALLATIN HAS ALSO SETTLED A PRIOR STATE ENFORCEMENT ACTION FOR CONSTRUCTING SOURCES WITHOUT A PERMIT. AMENDED REFERRAL, 2/15/00, REQUESTS DOJ FILED AMENDED COMPLAINT TO INCLUDE (OR FILE A SEPARATE ACTION AGAINST) HARSCO CORP. D/B/A HECKETT MULTISERVE AS DEFENDANT AND ALLEGE ADDITIONAL ONGOING VIOLATIONS OF THE CAA. AS A RESULT OF THE 9/96 REFERRAL, A COMPLAINT WAS FILED IN COURT. EPA'S COMPLAINT AND PROPOSED CD WERE FILED SIMULTANEOUSLY IN 2/99. ON MAY 13, 1999, LOCAL CITIZENS VERNON, RICHARD, AND THOMAS ELLIS AND THEIR FAMILIES (WHO LIVE APPROX. 2 MILES FROM THE FACILITY) FILED ADVERSE COMMENTS TO THE PROPOSED CD, ALLEGING, AMONG OTHER THINGS, THAT HARMFUL FUGITIVE METALLIC DUST EMISSIONS WERE BEING EMITTED FROM GALLATIN'S STEEL MAKING OPERATION THAT WERE NOT ADDRESSED IN THE CD. AT THE GOV'T'S REQUEST, THE CD IS BEING HELD IN ABEYANCE TO ALLOW EPA TO INVESTIGATE THE ELLIS' CLAIMS AND TO EVALUATE ALTERNATIVE SEPS PROPOSED BY GALLATIN. EPA AND KY CONDUCTED A JOINT MULTIMEDIA INSPECTION OF THE PLANT ON 11/16-11/18, 1999 FOR COMPLIANCE WITH CAA, CWA, AND RCRA. NO CWA VIOLATIONS WERE DETECTED, AND FURTHER INVESTIGATION IS NEEDED TO FULLY DETERMINE THE SCOPE OF POSSIBLE RCRA VIOLATIONS. THE CAA VIOLATIONS DETECTED ARE AS FOLLOWS: THE AIR INSPECTORS OBSERVED SIGNIFICANT AMOUNTS OF FUGITIVE DUST CREATED DURING THE LOADING AND UNLOADING OF SCRAP IN THE SCRAP YARD THAT GALLATIN FAILED TO INCLUDE IN THEIR PSD PERMIT APPLICATION AND TITLE V PERMIT APPLICATION, IN CONTRAVENTION OF CAA SECTIONS 165(A), 503, AND 504 AND ACCOMPANYING REGULATIONS AT 40 CFR 52.21 AND 70.5, AND KENTUCKY REGULATIONS AT 401 KAR 51:017 SECTIONS 8, 9, AND 13 AND 401 KAR 50.035 SECTION 3(3)(D). THE INSPECTION ALSO REVEALED THAT GALLATIN FAILED TO INCLUDE HECKETT IN ITS PSD AND TITLE V PERMIT APPLICATIONS, FAILED TO INCLUDE EMISSIONS FROM IT THREE ROOF VENTS ON TOP OF THE MELT SHOP IN THE PSD BACT REVIEW FOR THE REGULATED POLLUTANTS IN VIOLATIONS OF THE SECTIONS CITED ABOVE, AND FAILED TO USE REASONABLE PRECAUTIONS DURING THE LOADING AND UNLOADING OF SCRAP IN THE SCRAP YARD TO PREVENT FUGITIVE DUST FROM BECOMING AIRBORN

Defendants (3)

• HECKETT MULTISERV
• GALLATIN STEEL COMPANYNamed in complaintNamed in settlement
• HARSCO CORPORATION

Facilities (2)

• GALLATIN STEEL COMPANY

  4831 U S HIGHWAY 42 WEST, WARSAW, KY, 41095

  Registry ID: 110000591226

• GALLATIN STEEL COMPANY

  4831 U S HIGHWAY 42 WEST, WARSAW, KY, 41095

  Registry ID: 110000591226

Statutes cited

• CAA 165 — Prevention of Significant Deterioration (PSD)

Enforcement conclusions (1)

• Gallatin Steel Companyentered 2002-06-20

  Primary law: CAA

  Federal penalty: $925,000

Timeline (7 milestones)

• 1995-12-15Enforcement Action Data Entered
• 1996-09-27Referred To Dept Of Justice
• 1999-02-25Complaint Filed With Court
• 2000-10-04Final Order Lodged
• 2002-06-20Concluded
• 2002-06-20Final Order Entered
• 2006-11-21Enforcement Action Closed