Amicus Curiae Brief — Gulf States Steel, Inc. v. LTV Corp., 113 S. Ct. 661 (1992) (No. 92-732)

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No. 92-732

IN THE

Supreme Court of the Unite? States

OCTOBER TERM, 1992

GULF STATES STEEL, INC. OF ALABAMA,

Petitioner,

¥.

THE LTV CORPORATION, et ai.,

Respondents.

On Writ of Certiorari to the

United States Court of Appeals

For the District of Columbia Circuit

BRIEF AMICUS CURIAE

OF THE STATE OF ALABAMA

IN SUPPORT OF

GULF STATES STEEL, INC. OF ALABAMA’S

PETITION FOR A WRIT OF CERTIORARI

James H. Evans

Attorney General

The State of Alabama

Marc Givhan

Chief, Antitrust Division

Office of the Attorney General

The State of Alabama

11 South Union Street

Montgomery, Alabama 36130

(205) 242-7328

Counsel for Amicus Curiae

The State of Alabama

* Counsel of Record

Balmar Legal Publ: shing Services, Washington, D.C. (202)682-9800

TABLE OF CONTENTS

I. INTEREST OF AMICUS CURIAE THE STATE

Ce EE. fc. a Wl ne ee ce ew

Il. SUMMARY OF ARGUMENT .........

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A. LTV Had Prior Actual Notice From

The State Of Certain Environmental

Claims AtIssueIn This Case ......

B. The Escrow Deposit Monies Should

Be Restored To The Control Of The

District Court To Ensure LTV’s

Compliance With The Final

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TABLE OF AUTHORITIES

CASES PAGE

California v. American Stores Co., 495 U.S. 271

CFD) wake a ee eee 2

Rufo v. Inmates of Suffolk County Jail, 112 S. Ct.

FOR CUPRED on sk OS ee ee passim

In re Chateaugay Corp., 944 F. 2d 997

(fd Cie, FRE). ine ee ee 1]

Friends of the Earth v. Eastman Kodak Co., 656 F.

Supp. 513 (W.D.N.Y.), aff d, 834 F. 2d 295

(fu Oe. IT) ss ee eee ee 13

Sierra Club, Inc. v. Electronic Controls Design, Inc..,

909 F. 2d 1350 (Sth Gar. 1990) ........ 13

United States vy. LTV Corp., 1984-2 Trade Cas.

(CCH) § 66,133 (D.D.C.), appeal dismissed,

14 F. 24 31 (OA CART ha es 8

United States v. LTV Corp., No. 84-0884 (D.D.C.),

appeal dismissed, (D.C. Cir. Feb. 20,1986) ... 2,3,4,8

United States v. Vertac Chemical Corp., 756 F.

Supp. 1215 (E.D. Ark. 1991), aff d,

i)

961 F. 2d 790 GU Ge. TF) 6 we 13

STATUTES AND REGULATIONS

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Code of Alabama 1975 §22-22A-1 through 16 Le

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Alabama Pollution Control Rule and Regulation

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Alabama Pollution Control Rule and Regulation

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Alabama Pollution Control Rule and Regulation

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Alabama Pollution Control Rule and Regulation

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Alabama Pollution Control Rule and Regulation

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RULES

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12, 13, 14

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No. 92-732

IN THE

Supreme Court of the United States

OCTOBER TERM, 1992

GULF STATES STEEL, INC. OF ALABAMA,

Petitioner,

¥.

THE LTV CORPORATION, et al.,

Respondents.

On Writ of Certiorari to the

United States Court of Appeals

For the District of Columbia Circuit

BRIEF AMICUS CURIAE

OF THE STATE OF ALABAMA

IN SUPPORT OF

GULF STATES STEEL, INC. OF ALABAMA’S

PETITION FOR A WRIT OF CERTIORARI

I. INTEREST OF AMICUS CURIAE

THE STATE OF ALABAMA

The State of Alabama (“State”), through its Attorney

General James H. Evans, hereby respectfully files this brief

amicus curiae, pursuant to Rule 36 of this Court and the parens

patriae authority of the State,! in support of Petitioner Gulf

States Steel, Inc. of Alabama’s (“GSSI’) October 26, 1992

| The Attorney General also specifically is authorized to represent the

State in any and all legal actions concerning the Alabama Environmental

Management Act, Code of Alabama, 1975 §§ 22-22A-1 through 16 (1990)

Id at § 22-22-A-13.

2

Petition for a Writ of Certiorari to reverse the June 12, 1992

decision and August 4, 1992 mandate of the Court of Appeals

in LTV Corp. v. Gulf States Steel, Inc., 969 F. 2d 1050 (D.C. Cir.

1992) (Wald, J).

This Court has held that the State has standing under

Section 16 of the Clayton Act, as amended, 15 U.S.C. § 26

(1988) to seek divestiture to ameliorate the anticompetitive

effects of an unlawful merger. See California v. American

Stores Co., 495 U.S. 271, 281-84 (1990). This case highlights

the importance of the role of the State in enforcing the terms of

such a divestiture.

The State’s interest here is to enforce orders of the District

Court of the District of Columbia (“District Court’’) implement-

ing the terms of an antitrust consent decree, under which

Respondents (“LTV”) had agreed to retain and assume environ-

mental liabilities ata Gadsden, Alabama steel mill that LTV was

required to divest, in exchange for the government’s approval

of LTV’s acquisition of Republic Steel Corporation. See United

States v. LTV Corp., 1984-2 Trade Cas. (CCH) § 66,133

(D.D.C.), appeal dismissed, 746 F.2d 51 (D.C. Cir. 1984)

(“August 2, 1984 Final Judgment’); United States v. LTV Corp.,

No. 84-0884 (D.D.C.), appeal dismissed, (D.C. Cir. Feb. 20,

The Alabama Department of Environmental Management (“ADEM”) has

been delegated and designated as the authorized state agency responsible for

enforcement of: (1) the Federal Clean Air Act, 42 U.S.C. § 7401 et seq., as

amended; (2) the Federal Clean Water Act, 33 U.S.C. § 1251 et seq., as

amended; and (3) the Solid Waste Disposal Act, 42 U.S.C. § 3251 et seq., as

amended, and including 42 U.S.C. § 609 et. seg. See Code of Alabama 1975

§ 22-22-A-4(n) (1990). Moreover, ADEM has been authorized io take all

actions necessary and appropriate to secure to the State the benefits of these

environmental laws. See Code of Alabama, 1975 §§ 22-22A-1 through 16

(1990).

siacncciaiiiaaaaaaicei ieee alii ei

3

1986) (“December 17, 1985 Divestiture Order’). See Pet. GSSI

App. I, at 642; Pet. GSSI App. K, at 113a.?

The Court of Appeals erroneously held that LTV did not

have actual notice of the environmental claims at issue in this

case and therefore GSSI was precluded, as a matter of law, from

recouping expenses made for corrections to achieve and main-

tain environmental compliance at the Gadsden plant that arose

out of the conduct of Business prior to the January 31,1986

divestiture, see Pet GSSI App. A, at 22a-24a, even though

$19,590,000 of this amount was made under compulsion by and

subject to consent decrees with the State or ADEM. See State

App. V, at 76a through State App. CC, at 117a.

The State’s role in this case requires a brief discussion.

From the beginning, the State has sought to ensure that LTV

would assume environmental liabilities at the Gadsden plant,

which the District Court and its trustee found was a necessary

prerequisite to induce a new entrant to undertake the risk of

purchasing the Gadsden plant and placing it in a position so that

it could interject competition into the domestic steel industry.

On April 1, 1991, the State filed a motion to intervene, or in the

alternative to file as an amicus curiae before Judge Stanton of

the District Court for the Southern District of New York to

support the withdrawal of LTV’s adversary proceeding against

GSSI for collection of a $31 million balance remaining on a

promissory note from the Southern District of New York

(“Bankruptcy Court”) and transfer of venue to the District Court.

See LTV Corp. v. Gulf States Steel, Inc., No. 91-1826

(S.D.N.Y.).

On April 1, 1991, the State independently filed a motion in

the District Court to intervene in United States v. LTV Corp.,

No. 84-0884 (D.C.C.), to enforce its rights under the August 2,

2 In the interest of avoidiny the submission of duplicative materials, the

State has referenced herein certain documents found in GSSI’s Appendix,

which hereinafter will be designated as “Pet. GSSI App. __. at om

a

4

1984 Final Judgment. Asa result, on April 9, 1991, LTV filed

a motion for contempt against the State in the Bankruptcy Court

because the Attorney General declined to withdraw that motion,

which LTV contended was a violation of the automati¢ stay. On

April 10, 1991, the Bankruptcy Court held a hearing in which

the State also declined to participate to avoid the appearance of

submitting to that court’s jurisdiction. At that hearing, LTV was

advised by the Bankruptcy Court to withdraw its motion for

contempt. LTV did so.

On May 3, 1991, the District Court for the Southern

District of New York withdrew the reference of the adversary

proceeding and venue was transferred to the District Court. The

State was informed shortly thereafter by representatives of the

United States that it would oppose the State’s motion to inter-

vene in United States v. LTV Corp., No. 84-0884 (D.D.C.), but

would not oppose its participation as an amicus curiae or its

participation in the instant adversary proceeding. See Pet. GSSI

App. Y, at 203a. Rather than engage in an ancillary jurisdic-

tional dispute, on May 23, 1991, the State moved to intervene

in this case, or in the alternative, to file as an amicus curiae. On

June 5, 1991, the District Court denied the State’s motion to

intervene.

The District Court indicated, however, that the State’s

description of the environmental laws and regulations relevant

to this case and LT V’s compliance therewith prior to the dives-

titure would be of assistance. Therefore, on August 24, 1991,

the State filed an amicus brief, as requested, and submitted

affidavits prepared on July 31, 1991 by ADEM’s chief enforce-

ment officials. See Pet. GSSI App. W, at 198a; Pet GSSI App.

X, at 199a. On August 26, 1991, the District Court granted the

State’s motion to file as an amicus curiae.

Atan evidentiary hearing *-'d on August 27-28, 1991, ADEM

enforcement records and LTV 1. nal records concerning meet-

ings with ADEM enforcement c“ficials were admitted into

5

evidence. See, e.g., State App. E, at 24a through State App. U, at

75a.3 In addition, ADEM officials were called by GSSI to

testify on rebuttal, but the District Court informed them that their

testimony was not necessary and they did not take the stand.

After the hearing, the July 31, 1991 ADEM affidavits were

admitted into evidence.

In the Court of Appeals, the State also filed a similar amicus

brief attaching the July 31, 1991 ADEM affidavits and a

chronology of environmental compliance at the Gadsden plant,

referencing numerous ADEM enforcement records admitted in

the District Court. These documents demonstrate that LTV had

actual notice from the State of the “amount and circumstance”

of environmental claims at the Gadsden plant as of the time of

the divestiture — which were virtually identical to those sought

by GSSI in this case, as to water treatment, Coke Plant, and Basic

Oxygen Furnace (“BOF”) facilities at the Gadsden plant.

The Court of Appeals’ June 12, 1992 decision, however, is

devoid of any evidence that it considered the State’s participa-

tion therein or below— or even that it deemed the knowledge

of the state environmental officials relevant. Indeed, the Court

of Appeals went so far as to preclude ADEM enforcement

officials from testifying on remand as to what and when LTV

knew about GSSI’s environmental claims, by its denial of

GSSI’s Petition for Rehearing and Suggestion for Rehearing En

Banc, even though it opined that “[o]f course, knowledge of the

environmental problems at the plant is not the same as knowing

about the specific steps taken by the ADEM and the EPA to

require remedial action.” See Pet. GSSI A, at 22a.

References to the State’s Appendix, hereinafter will be designated as

“State App. ___, at___a.” Among the ADEM documents and LTV docu-

ments admitted by the District Court to evidence LTV’s actual notice of the

environmental claims at issue, are those attached hereto in State App. A, at

la; State App. E, at 24a through State App. U, at 74a.

6

Had the Court of Appeals followed the procedural and

substantive analysis in Rufo v. Inmates of Suffolk County Jail,

112 S. Ct. 748, 765 (1992), it would have upheld the District

Court’s December 5, 1991 finding and conclusion that “LTV

had timely notice, written and otherwise of GSSI’s indemnifica-

tion claims,” see Pet. GSSI App. B, at 39a, 95, because LTV

would have been required to demonstrate either that it assumed

environmental liabilities at the Gadsden plant pnor to divestiture

or that such assumption was no longer warranted. In either case,

LTV would have had to demonstrate that it had notice of the

“amount and circumstance” of GSSI’s environmental claims at

issue in this case.

Il. SUMMARY OF ARGUMENT

The contract at issue in this case concerns LTV’s obliga-

tions to the District Court, as contained in the August 2, 1984

Final Judgment — an antitrust consent decree to which the State

was and is an intended and direct beneficiary. Compare Rufo

112 S. Ct. at 757 (“A consent decree no doubt embodies an

agreement of the parties and thus in some respects is contractual

in nature. But it is an agreement that the parties desire and

expect will be reflected in and be enforceable as a judicial decree

....) (emphasis added) with LTV Opposition Brief at 1.

Since the Court of Appeals’ responsibility was to review a

Judicial decree, its selective “de novo” review was improper and

defective ab initio. Neither the January 31, 1986 Asset Purchase

Agreement nor promissory note can be reviewed independent

of the August 2, 1984 Final Judgment and the District Court’s

orders implementing the consent decree’s terms. Therefore,

LTV’s argument that this dispute concerns solely the terms of

the 1986 Asset Purchase Agreement between LTV and GSSI is

incorrect and misleading. The District Court's December 17,

1985 Divestiture Order required LTV to divest the Gadsden

plant, on terms that specifically incorporated by reference the

August 2, 1984 Final Judgment, which provided that LTV

7

could be required by the District Court’s trustee to retain and

assume all liabilities at the Gadsden plant as of the divestiture,

if LTV itself did not divest the plant within six months after entry

of the consent decree as a final judgment. Thus, this dispute

concerns the very “essence of [the] agreement,” as it is described

in the words of the preamble to the August 2, 1984 Final

Judgment. See Pet. GSSI App. I, at 93a. Accord Rufo 112 S. Ct.

at 759 (“None of the changed circumstances warranted

modification because it would violate one of the primary pur-

poses of the decree. . . .”).

The Court of Appeals’ erroneous adoption of LTV’s con-

tract analysis also failed to recognize that, as a matter of law, no

private party — not even GSSI — could obviate the terms of the

August 2, 1984 Final Judgment, without the specific agreement

of the United States or the District Court, which is found

nowhere in this record. See, e.g., Pet. GSSI App. E , at 58a, §/2;

Pet. GSSI App. Y, at 202a. Nor did the District Court’s Decem-

ber 17, 1985 Divestiture Order permit GSSI and LTV to do so

by amending the Asset Purchase Agreement, as LTV would have

this Court believe. Jd. The enforcernent and public policy rationale

for this is not difficult to understand — since horizontal competitors,

such as LTV and GSSI, certainly could find a way to reach an

accommodation that would suit their business needs, but work to

deny the public the environmental and competitive benefits of the

divestiture. /d. At the time of the divestiture, LTV had actual notice

from the State of certain environmental liabilities it was required to

retain and assume, as well as their “amount and circumstance[s].”

Other than compliance for the benzene NESHAP, those were

virtually identical to the environmental claims made by GSSI

below.

8

il. ARGUMENT

A. LTV HAD PRIOR ACTUAL NOTICE

FROM THE STATE OF CERTAIN

ENVIRONMENTAL CLAIMS AT

ISSUE IN THIS CASE.

The Court of Appeals’ failure to consider the relevance of

the record of the divestiture proceedings in United States v. LTV

Corp., No. 84-0884 (D.D.C.), appeal dismissed, (D.C. Cir. Feb.

20, 1986), and the enforcement records and affidavits from

ADEM enforcement officials, admitted into evidence by the

District Court, led to its erroneous ruling that LTV was

prejudiced by GSSI’s actions. There is no question that LTV

had actual notice from the State that its failure to achieve and

maintain compliance with the National Pollutant Discharge

Elimination System (“NPDES”) permit requirements in 1984

violated both state and federal law. See Pet. GSSI App. T, at

172a-183a. See also Pet. GSSI App. W, at 198a. Therefore,

LTV had actual notice that NPDES compliance was an environ-

mental liability that it was required to retain and assume under

the August 2, 1984 Final Judgment. See Pet. GSSI App. T, at

175a-183a. Indeed, the $5,350,000 amount GSSI claimed for

NPDES compliance was for the same violations as those faced

by LTV and the amounts spent by GSSI were well within the

“5.2 million (1982 Dollars)” to “$20 million (1982 dollars)”

range that LTV expected would be required in 1986. See GSSI

App. T, at 182a-183a.; Pet. GSSI App. R, at 146a (10 million-13

million for Water Treatment for Coke Plant and Galvanizing

Line). See also Pet. GSSI App. S, at 164a, § 21.

In addition, LTV had actual notice from the State of LTV’s

failure, prior to January 31, 1986, to achieve and maintain

compliance with the following Alabama Pollution Control

Rules and Regulations at the Gadsden Coke Plant: Section

4.9.4(a) (Coke Oven Doors-Pushing); Section 4.9.6(a) (Coke

Oven Doors); Section 4.9.8 (Coke Oven Stacks); and at the

. 0 eo

9

BOF: Section 4.1.1 (BOF Roof Monitor); Section 4.9.8 (BOF

Combustion Stack); Section 4.17.1 (BOF Shop Roof Monitor)

See State App. E, at 24a through State App. U, at 74a. There-

fore, LTV had actual notice that compliance with regulations

governing the Coke Plant and BOF were environmental liabilities at

the Gadsden plant that LTV was required to retain and assume under

the August 2, 1984 Final Judgment. See Pet. GSSI App. R, at 146a

($6 million for B.O.F. Precipitator Repairs and No. 3 [Coke] Battery

Rehabilitation); Pet. GSSI App. T, at 170a- 172a, 175a-176a; and Pet.

GSSI App. X, at 199a-200a: State App. E, at 24a through State App.

U, at 75a. See also Pet.GSSI App. S, at 164a, § 21. Moreover, GSSI’s

environmental claims were for compliance with the same regulations

and in amounts known or foreseen by LTV prior to January 31, 1986.

Id. See also State App. V, at 76a through State App. CC, at 117a.

Therefore, LTV had actual notice of the “amount and cir-

cumstance[s]” of these environmental claims made by GSSI.

The Court of Appeals also failed to recognize that LTV could

have made the expenditures necessary to bring the Gadsden plant into

environmental compliance prior to closin g and was given that oppor-

tunity by the State on many occasions. See State App. E, at 24a

through State App. U, at 75a. Indeed, the record clearly reflects

that in September 1985, LTV had notice that the “amount and

circumstance[s]” of potential environmental claims at the

Gadsden plant would be, at least:

(1) Water Treatment $7,000,000-10,000.000

for Coke Plant

(2) B.O.F. Precipitator Repairs 3,000,000

(3) Hot Strip/Cold Strip Water

Treatment [Galvanizin g Line} 3,000,000

(4) No. 3 Battery Rehabilitation 3,000,000

(5S) Additional Solid Waste Disposal

Area 2,000,000

Total $18,000,000-2 1,000,000

10

See Pet. GSSI App. R, at 146a. See also Pet. GSSI App. T, at

170a-183a.

All environmental claims sought by GSSI and awarded by the

District Court’s December 2, 1991 Order, other than $9,000,000

for benzene control, were for environmental corrections made by

GSSI under compulsion by and subject to consent decrees with the

State or ADEM, and in amounts in accord with or of which LTV

had prior actual knowledge. See State App. V, at 76a through

State App. CC, at 117a. Compare Pet. GSSI App. R, at 145a-

146a; Pet. GSSI App. T, at 170a-183a; and Pet. GSSI App. S, at

165a (“In the first two years after the sale to Brenlin, the cash

financial impact on LTV will be $99.2 million. The total cash

financial impact of the Brenlin proposal on LTV over the years is

$263.5 million. Additional cash penalties would be incurred that

cannot be calculated. These penalties, would result from... (f)

costs of post-closing funding for... Environmental compliance.”’)

with Pet. GSSI App. Z, at 204a:

(1) Coke Water Treatment Plant $3,350,000

(2) BOF Corrections 5,500,000

(3) Galvanizing Line Water

Treatment Plant 2,000,000

(4) Coke Plant

(No. 2 and No. 3 Battery) 8,740,000

Total $19,590,000

See also State App. V, at 189a; State App. W, at 198a.

LTV decided that it was advantageous to its financial

interests to defer and let GSSI make the necessary expenditures

for environmental compliance. Thus, LTV was not “deprived of

the opportunity to participate in the defense and settlement of

the underlying claims,” for which it was held responsible,

contrary to the conclusion of the Court of Appeals. Compare

Pet. GSSI App. A, at 24a with Pet. GSSI App. W, at 198a, § 3B;

1]

Pet. GSSI App. X, at 200a § 3E. Compare also State App. E, at

24a through State App. U, at 75a with State App. V, at 76a

through State App. CC, at 117a. LTV was the beneficiary of

the delay. Compare Pet. GSSI App. A, at 23a with Rufo, 112 S.

Ct. at 758 (consent decrees may not be modified unless there are

“changes in circumstances that were beyond the defendants’

control and were not contemplated by the court or the parties

when the decree was entered.”). See Pet. GSSI App. S, at 164a,

q 21.

It should also be noted that these were not environmental

liabilities GSSI voluntarily assumed. Indeed, GSSI had to be

compelled by the State to achieve environmental compliance at

the Gadsden plant. See State App. V, at 76a through State App.

CC, at 117a. GSSI was then left to pursue LTV to recover the

expenses made.* The State could have brought an enforcement

action against LTV prior to the divestiture to compel environ-

mental compliance, but this would Clearly have delayed the

divestiture, and “threatened the continued operation (or sale) of

the plant.” See State App. S, at 68a: Pet. GSSI App. B, at

36a-37a. Instead, the State allowed the divestiture to proceed

and decided to seek enforcement only if LTV did not live up to

its obligations. LTV has not done so and for that reason the State

initiated its April 1, 1991 enforcement action in the District

Court and now files as an amicus curiae in support of GSSI’s

October 26, 1991 Petition for a Writ of Certiorari regarding the

District Court’s award of $19,590,000 from the escrow funds.

+ This is analogous to how response costs are incurred and paid by a

“potentially responsible party,” under the Comprehensive Environmental

Response, Compensation, and Liability Act of 1980, 42 U.S.C. § 9607

(1988). See e.g.. In re Chateaugay Corp., 944 F2d 997,999-1000 (2d Cir.

1991).The State takes no position, however. regarding the $9,000,000

amount claimed by GSSI for benzene control since those monies were

expended to comply with enforcement letters fromn EPA’s Regional Office,

rather than ADEM.

> ADEM enforcement records admitted into evidence below and the

July 31, 1991 ADEM affidavits Support the District Court’s award of

aati,

12

B. THE ESCROW DEPOSIT MONIES

SHOULD BE RESTORED TO THE

CONTROL OF THE DISTRICT COURT

TO ENSURE LTV’S COMPLIANCE WITH

THE FINAL JUDGMENT.

There is no question that the Court of Appeals’ June 12,

1992 decision and August 4, 1992 mandate, modified the

August 2, 1984 Final Judgment de facto by releasing to LTV the

$31 million GSSI deposited into an escrow and made subject to

the control of the District Court. See Pet. App. G, at 62a. Surely

the Court of Appeals realized that these funds represented the

most immediate, and perhaps only, means by which LTV can

be compelled to assume its environmental liabilities at the

Gadsden plant, given LTV’s bankruptcy. See Pet. GSSI App.

A, at 27a.

If the Court of Appeals had adhered to Fed. R. Civ. P. 60(b)

the issue of whether there was a significant change in fact or law

to warrant such a release would have been before the Court. See

Rufo, 112 S. Ct. at 758. LTV, however, could not have met that

burden. LTV could not have cloaked itself in the protection of

the bankruptcy laws, as LTV agreed to exemptto its pre-existing

obligations to the State to retain and assume pre-divestiture

environmental liabilities at the Gadsden plant from modification

based on hardship. See GSSI App. I, at 93a.

Moreover, since the District Court’s December 5, 1991

Order determined only that LTV was required to retain and

assume certain environmental Jiabilities at the Gadsden plant which

GSSI sought to recoup from the escrow deposit, the District Court

did not reach, nor was it asked to determine, whether there were

other environmental liabilities that LTV was required to retain and

assume at the Gadsden plant, that were not sought by GSSI in this

$19,590,000 to GSSI for water treatment and corrections to the Coke plant

and BOF facilities at the Gadsden plant. See e.g., State App. E, at24a through

State App. U, at 74a; Pet. GSSI App. W, at 198a; Pet. GSSI App. X, at 199a.

13

proceeding — such as solid waste disposal, as admitted by LTV

in 1985, compare Pet. GSSI App. R, at 146a and State App. A, at

1a with State App. B, at 3a; other water treatment facilities and BOF

corrections, which the State compelled GSSI to correct after the

August 26, 1991 hearing, see State App. C, at 8a; State App. D, at

15a or other State enforcement actions that may be required prior

to August 2, 1994, when the August 2, 1984 Final Judgment

expires, such as potential underground environmental claims which

may in fact be LTV’s responsibility. By prematurely releasing the

escrow deposit funds, the Court of Appeals modified the August 2,

1984 Final Judgment de facto by allowing LTV to evade these

habilities, and leaving them to be bome either by GSSI or the taxpayers.

Thus, this Court should grant GSSI’s Petition for a Writ of

Certiorari to review whether the Court of Appeals’ release of the

escrow funds to LTV, prior to a determination bein g made that LTV

has assumed all environmental liabilities required under the August

2, 1984 Final Judgment, modified the Final Judgment de facto

without compiiance with the procedural and substantive require-

ments of Fed. R. Civ. P. 60(b) and this Court’s Rufo decision. This

Court should issue a writ of certiorari to restore the escrow deposit

monies to the control of the District Court pending this Court’s review

of this case and until a/l of LTV’s environmental habilities under the

August 2, 1984 Final Judgment are determined.6

Environmental trust funds have been authorized to permit district courts

to enforce obligations assumed under consent decrees. See generally, Sierra

Club, Inc. v. Electronic Controls Design, Inc., 909 F.2d 1350, 1355 (9th Cir.

1990); Friends of the Earth v. Eastman Kodak Co., 656 F. Supp. 513

(W.D.N.Y.), aff d., 834 F.2d 295 (2d Cir. 1987); and United States v. Vertac

Chemical Corp., 756 F. Supp. 1215 (E.D. Ark. 1991), aff d, 961 F.2d 796 (8th

Cir. 1992). Since the escrow deposit continues to accumulate market interest,

LTV’s financial interests are protected until a final determination is made.

14

IV. CONCLUSION

Nothing less than the integrity of the antitrust consent

decree process is at stake in this case. The citizens of Alabama

look to this Court to ensure that LTV is made to assume

environmental liabilities at the Gadsden plant, as required by the

August 2, 1984 Final Judgment and the District Court’s im-

plementing orders and to make clear that the requirements of

this Court’s Rufo decision with regard to Fed. R. Civ. P. 60 (b)

also applies to civil antitrust consent decrees, particularly since

many of these governmental decrees are subject to review by

the Court of Appeals for the District of Columbia Circuit.

For the reasons set forth above, this Court should grant

GSSI’s October 26, 1991 Petition for a Writ of Certiorari to

review and reverse the June 12, 1992 decision and August 4,

1992 mandate of that court.

Respectfully submitted,

James H. Evans

Attorney General

The State of Alabama

Marc Givhan™

Chief, Antitrust Division

Office of the Attorney General

The State of Alabama

11 South Union Street

Montgomery, Alabama 36130

(205) 242-7328

Counsel for Amicus Curiae

The State of Alabama

“Counsel of Record

ia

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APPENDIX A

LTV Steel

Departmental Correspondence

Date: January 18, 1985

Subject: See Below

To:

R.R. Basinski

D.G. Berkebile

W.B. Bredbeck

C. Broman

D.F. Brown

J.M. Carroll

F.P. Cooper

R.V. Culp

J.D. Donohoe

B.J. Fedak

J.R. Fulton

M.A. Gipko

W.A. Goodwin

P.J. Grandy

S.A. Green

R.M. Hanna

S. Hansen

No:

T.J. Harlan

M.L. Harmon

D.J. Harper

K.W. Hazard

J.R. Humphrey

D.C. Imel

T.J. Kachur

J. R. Kosko

L.E. Larson

A. McDonald

O.J. Mantenieks

D.H. Miller

S. Muryn

D.G. Nemec

R.L. Nemeth

H.L. Page

D.E. Papajcik

J.M. Potwora

R.E. Ross

W. Russell

J.T. Samuels

P.N. Schlingman

G.Q. Seese

S.S. Sephton

J. Skubak

L.B. Smith

E.M. Stewart

D.H. Wakelin

W.L. West

M.S. Wilcox

F.R. Winn

D.E. Winston

L.D. Wisniewski

D.A. Woodring

T.A. Zalenski

R.V. Zavoda

Subject: Hazardous and Solid Waste Amendments of 1984

Summary of New Law and Potential Impacts on

LTV Steel Company

Enclosed for your information is a copy of a Summary of

the RCRA Amendments as passed by Congress and signed by

President Reagan on November 8, 1984. The summary was

prepared by the law firm of Collier, Shannon, Rill and Scott.

The amendments require that USEPA take specific action

in rulemaking within definite time frames. There are many such

2a

“hammer” provisions imposed on USEPA to ensure that strin-

gent restrictions as set forth in the amendments take effect

“automatically” should USEPA fail to develop the necessary

rulemaking provisions.

It is extremely difficult to predict the full impact of these

new laws until the agency publishes their interpretation in

rulemaking fashion. However, it is now anticipated that the

regulations will have a very significant impact on LTV Steel

Company’s handling and disposal practices regarding primarily

hazardous wastes. Unfortunately, the costs associated with the

handling and disposal of these wastes traditionally generated

from the making and finishing of steel are also most likely to

increase. Most of these increased costs will be passed on by

vendors providing services for the handling and ...

‘rea

3a

APPENDIX B

ALABAMA DEPARTMENT OF

ENVIRONMENTAL MANAGEMENT

IN THE MATTER OF:

GULF STATES STEEL, INC.

174 South 26th Street

Gadsden, Alabama 35904

EPA ID. NO. AID 004014973

ORDER NO. 92-082-HW

FINDINGS

Pursuant to the provisions of the Alabama Environmental

Management Act, Ala. Code §§22-22A-] through 22-22A-16

(1990 Replacement Vol.), the Alabama Hazardous Wastes

Management and Minimization Act of 1978, Ala. Code §§22-

30-1 through 22-30-20 (1990 Replacement Vol.), the Alabama

Department of Environmental Management, (“the Depart-

ment’’) makes the following FINDINGS:

1. Gulf States Steel, Inc. (hereinafter “Gulf States’’)

operates an integrated steel making facility located in Gadsden,

Alabama.

2. On December 6, 1990, the Department promulgated the

Method 1311 Toxicity Characteristic Leaching Procedure

(TCLP) and ADEM Admin Code R. 335-14-2-.03(5) which is

the procedure and regulation for determining whether a solid

waste exhibits the characteristic for toxicity and is therefore a

hazardous waste.

3. Gulf States generates, at its Gadsden facility, D018

(Benzene) hazardous waste pursuant to ADEM Admin Code R.

335-14-2-.03(5) and is managed in a hazardous waste unit.

4. ADEM Admin. Code R. 335-14-8-.07(4)(d) states:

da

...Interim status for each land treatment, storage, or

disposal facility which is in existence on the effective

date of statutory or regulatory amendments under the

AHWMMaA that render the facility subject to the

requirement to have an AHWMMA permit will be

terminated twelve months after the date on which the

facility first becomes subject to such permit require-

ment unless:...

....2. The owner or operator certified, on or before the

date twelve months after the date on which the facility

first becomes subject to such permit requirement, that

such facility is in compliance with all applicable

groundwater monitoring and financial responsibility

requirements ....

5. Gulf States failed to provide the Department with cer-

tification that it had complied with the financial responsibility

requirements of ADEM Admin. Code R. 335-14-6-.08 on or

before December 6, 1991 thereby losing its interim status clas-

sification pursuant to the requirements of 335-14-8-.07(4)(d)2.

6. A review of the Financial Assurance test subrnitted by

Gulf States revealed that it did not meet the requirements of

ADEM Admin. Code R. 335-14-6-.08(4)(e)1(i)I and 335-14-6-

.08(6)(e)1(i)(1) in that Gulf States failed to meet any two of the

three requirements to assure compliance with this regulation.

ORDER

Based on the foregoing FINDINGS and pursuant to Ala.

Code §§22-22A-5(10), 22-22A-5(18), 22-30-20 and 22-30-

19(a) and (b) (1990 Replacement Vol.), itis hereby ORDERED:

A. That not later than 30 days from notice of receipt of this

Order, Gulf States shall submit to the Department proof of

adequate financial assurance for all closure and post-closure

activities that meets the requirements of ADEM Admin. Code

R. 335-14-6-.08. That not later than 30 days from notice of

‘ ns

Sa

receipt of this Order, Gulf States shal] submit to the Department

proof of adequate sudden and non-sudden liability coverage for

the regulated unit. In the event that Gulf States cannot comply

with the timeframe described above, Gulf States shall provide

the Department with proof that reasonable Steps have been taken

to obtain the required coverage and/or financial assurance. The

Department may extend such timeframe in writing upon receipt

of a written request therefor, by Gulf States. Such written

request for an extension shall be submitted to the Department in

advance of the above mentioned deadline. In the event that Gulf

States cannot obtain non-sudden liability coverage within 30

days of the receipt of notice of this Order, Gulf States shall

submit a status report, to the Department, once every 30 days,

thereafter, describing the steps that have been taken and are

being taken to obtain the required coverage.

B. Prior to June 1, 1992, Gulf States shall cease managing

hazardous waste in the regulated unit. The Department may, in

writing, extend such timeframe. Such request shall be in writing

and received by the Department prior to above mentioned

deadline.

C. That not later than 180 days after receipt of notice of

the Department’s appro’: of Gulf State’s closure plan, Gulf

States shall have compteteud closure activities of all hazardous

waste management wits in accordance with the approved

Closure Plan and the requirements of ADEM Admin. Code R.

335-14-6-.06(4). As part of its closure activities, Gulf States

Shall determine if the hazardous waste unit has impacted the

groundwater beneath its facility.

D. That in the event that the Department or Gulf States

determines that all hazardous waste or hazardous constituents

cannot be removed from any on-site hazardous waste manage-

ment unit, Gulf States shall comply with the requirements of

ADEM Admin. Code Chap. 335-14-6 and 335-14-8 and Shall

submit to the Department within 180 days of such determination

6a

a complete post closure permit application, including a

groundwater corrective action plan, and all applicable permit

fees in accordance with the requirements of ADEM Admin.

Code. R. 335-14-8-.01(1)(c) and 335-1-6-.04 and ADEM

Admin. Code Rules 335-14-8-.02.

E. That not later than 30 days from receipt of notice of this

Order, Gulf States shall pay a civil penalty to the Department in

the amount of $46,000.00.

F. That the failure to comply fully with the terms and

conditions of this Order shall constitute cause for the commen-

cement of legal action for the recovery of civil penalties,

criminal fines, or other appropriate relief by the Department

against Gulf States.

G. That the issuance of this Order does not preclude the

Department from seeking criminal fines or other appropriate

relief against Gulf States for the violations stated herein.

ORDERED and ISSUED this 6th day of April, 1992.

/s/

Leigh Pegues, Director

Alabama Department of

Environmental Management

1751 Cong. W.L. Dickinson Drive

Montgomery, Alabama 36130

(205) 271-7700

7a

CERTIFICATE OF SERVICE

I, James G. Stevens, hereby certify that I have served the

foregoing proposed Administrative Order, Order No. 92-082-

HW upon Gulf States Steel Inc., by sending the same postage

paid, through the U.S. Mail, as Certified Mail No. P 825 089

250, with instructions to forward and return receipt requested

to:

Mr. Buster Stewart

Gulf States Steel, Inc.

174 South 26th Street

Gadsden, Alabama 35904

DONE this 6th day of April, 1992.

/s/

James G. Stevens

8a

APPENDIX C

IN THE CIRCUIT COURT FOR

ETOWAH COUNTY, ALABAMA

STATE OF ALABAMA,

Plaintiff,

VS.

GULF STATES STEEL, INC.,

Defendant.

CIVIL ACTION NO.

CV91-242-WWC

CONSENT DECREE

WHEREAS, the parties to the action are the Attorney

General, for and on behalf of the State of Alabama, and all its

agencies, boards, departments and subdivisions, as Plaintiff and

Gulf States Steel, Inc., a corporation, as Defendant; and

WHEREAS, Defendant, Gulf States Steel, Inc., (““GSSI’)

operates an integrated steelmaking facility in Etowah County,

Alabama; and

WHEREAS, GSSI has a permit authorizing discharge into

the waters of Alabama, issued by the Alabama Department of

Environmental Management (“ADEM”) on December 4, 1987

pursuant to the National Pollution Discharge Elimination Sys-

tem (“NPDES”) and the Alabama Water Pollution Control Act,

Ala. Code §22-22-1 through §22-22-14, subject to certain terms

and effluent limitations as more fully set forth in the permit

(NPDES Permit No. ALD 0055239); and

WHEREAS, ADEM, in certain administrative actions, and

plaintiff, State of Alabama, herein, have alleged violations of

the effluent limitations contained in GSSI’s NPDES permit; and

;

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9a

WHEREAS, under Ala. Code §22-22A-5(18)b, the Attor-

ney General or ADEM may bring a civil action to enforce the

provisions of the Act and recover monies for violations of an

NPDES permit; and

WHEREAS, plaintiff, on behalf of the State of Alabama,

and all its agencies, boards, departments, and subdivisions, and

defendant, GSSI, by their respective attorneys, have agreed that

settlement of this matter is in the public interest and that entry

of this Consent Decree without further litigation is the most

appropriate means of resolving all matters of dispute between _

the parties regarding any and all alleged violations of NPDES

Permit ALD0055239; and,

WHEREAS, by entering this Consent Decree, GSSI makes

no admission of law or fact, and the parties agree that neither

the fact that this Consent Decree has been entered nor any of its

terms shall be admissible in any subsequent proceeding, except

for a proceeding to enforce the terms hereof;

NOW THEREFORE, before the taking of any testimony,

upon the pleadings, without adjudication of any issues of law or

fact herein, and without any admission of violation of law or

regulation, it is hereby ORDERED, ADJUDGED, and

DECREED as follows:

I.

JURISDICTION

This Court has jurisdiction of the Parties and the subject

matter pursuant to Ala. Code §§22-22-9(m) and 22-22A-5(18)b.

Il.

AUTHORIZED REPRESENTATIVES

Each of the undersigned representatives for each party

certifies that he or she is fully authorized by the party whom he

or she represents to enter into the terms and conditions of this

Decree and legally bind them to it.

10a

iil.

PARTIES BOUND

The provisions of this Decree are binding upon the State

of Alabama, its agents, officials, and employees and all of its

agencies, boards, departments and subdivisions and upon GSSI,

and its corporate parent, successors and assigns.

IV.

COMPLIANCE DATE

GSSI shall be in full compliance with the effluent limita-

tions of its NPDES permit no later than October 31, 1992, which

shall be referred to as the “Compliance Date.”

ws

ENVIRONMENTAL PROJECTS

In addition to the modifications required to meet the Com-

pliance Date Defendant GSSI agrees to perform the following

environmental projects, not otherwise required to be ac-

complished:

A. Barometric Condensers. GSSI will replace the

barometric condensers at the by-products coke plant with non-

contract type condensers, thereby eliminating a pollutant stream

of contact water, on the following schedule:

1. Complete engineering - March 20, 1992

2. Begin installation - March 23, 1992

3. Complete installation - September 30, 1992

B. Lagoon Aeration. To increase the dissolved oxygen

concentration of GSSI’s final effluent, GSSI will aerate its final

water lagoon on the following schedule:

1. Complete engineering - May 29, 1992

2. Begin installation - July 20, 1992

3. Complete installation - August 28, 1992

lla

C. Costs and Environmental Benefit. itis estimated by

the parties that the cost of the projects listed above will be

$1,005,000.00, and that such projects will confer an environ-

mental benefit over and above what‘is currently required. :

VI.

COSTS OF LITIGATION

The Defendant GSSI shall pay costs of litigation in the

amount of One Hundred Eighty Thousand ($180,000.00) to the

Attorney General’s Office. Payment of the costs shall be made

within thirty (30) days of the Court’s entry of this Decree, and

Shall be made by certified check payable to the office of the

Attorney General for deposit into said office’s operating fund

and made immediately available to said office for its general law

enforcement purposes.

ee See

iti abe <S —-

VIL.

RELEASE

In consideration of the understanding and completion of

the environmental projects described in Section V, the State of

Alabama, and all its agencies, boards, departments and sub-

divisions, agrees that any and ail actions, causes of action,

claims, rights, demands and requests for damages or other orders

of any type whatsoever against GSSI regarding NPDES Permit

No. ALD 0055239, including, but not limited to, those asserted

or which could have been asserted in this action are satisfied,

discharged and settled, and the State of Alabama, and all its

agencies, boards, departments and Subdivisions, hereby

releases, acquits and forever discharges GSSI, its shareholders,

directors, officers, agents, employees, representatives, attor-

neys, Successors and assigns from any and all liability for claims

asserted or capable of assertion in this action. Provided, how-

ever, that nothing in this consent decree precludes the Attorney

General from seeking injunctive relief against GSSI in order to

protect the health and safety of the citizens of Alabama.

en

12a

Provided, further, that nothing in this consent decree shall be

interpreted as a release of GSSI or any of its directors, officers,

agents, or employees from criminal liability for any act or acts

occurring before or after the date of this consent decree, or as

preventing in any way the Attorney General or the State of

Alabama from prosecuting for any such criminal acts. Further-

more, in consideration of the compliance date set forth herein

and the agreement by GSSI to continue to use its best efforts

prior to the compliance date to reduce effluent discharges in

excess of the effluent limitations set forth in its NPDES permit,

the State of Alabama, and all its agencies, boards, departments

and subdivisions, hereby covenants not to sue, or otherwise

penalize, or issue orders to, GSSI for any exceedances of its -

permitted effluent limitations that may occur prior to the Com-

pliance Date.

VI.

NOTICE REQUIREMENTS

Whenever, under the terms of this Consent Decree, notice

is required to be given, the communication shall be delivered,

by certified mail, or with a reputable delivery service, to the

parties’ representatives at the addresses listed below:

R. Craig Kneisel H. Thomas Wells, Jr.

Assistant Attorney General Maynard, Cooper, Frierson

Attorney General’s Office & Gale, P.C.

11 South Union Street 1901 6th Avenue, North

Montgomery, Alabama 36130 2400 AmSouth/Harbert Plaza

Birmingham, Alabama 35203

a

13a

IV.

EFFECTIVE DATE

This Decree shall become effective upon approval by the

parties and ratification and adoption by the Court.

CONSENTED TO:

FOR THE STATE OF ALABAMA

/s/

JAMES H. EVANS

ATTORNEY GENERAL

/s/

R. CRAIG KNEISEL

ASSISTANT ATTORNEY

GENERAL

/s/

WILLIAM D. LITTLE

ASSISTANT ATTORNEY

GENERAL

Attorney General’s Office

11 South Union Street

Montgomery, Alabama 36130

FOR GULF STATES STEEL, INC.

/s/

H. Thomas Wells, Jr.

Maynard Cooper, Frierson & Gale

1901 Sixth Avenue, North

| 2400 AmSouth/Harbert Plaza

| Birmingham, Alabama 35203

l4a

Costs of this Action are taxed to Defendant.

RATIFIED, ADOPTED, AND DONE this 23rd _ day of

March , 1992.

/s/

William W. Cardwell, Jr.

Circuit Judge

Dit cr Pema

15a

APPENDIX D

IN THE CIRCUIT COURT OF

ETOWAH COUNTY, ALABAMA

ALABAMA DEPARTMENT OF

ENVIRONMENTAL MANAGEMENT ;

Plaintiff,

¥.

GSSI, INC. d/b/a GULF STATES STEEL, INC.,

a wholly owned subsidiary of the Brenlin Corporation,

Defendant.

CIVIL ACTION NO.

CV 88-856-JSS

CONSENT ORDER

The parties to this Consent Order are the Plaintiff, Alabama

Department of Environmental Management (hereinafter “the

Department”), and the Defendant GSSI, Inc., doing business as

Gulf States Steel, Inc. (hereinafter “Gulf States”), an Alabama

corporation and a wholly owned Subsidiary of the Brenlin

Corporation.

This Consent Order shall apply to the claims of the Depart-

ment against Gulf States for any of the acts complained of by

the Department in its Motion to Enforce Consent Order.

Gulf States has denied the allegations presented in the

Department’s Motion to Enforce. Nevertheless, Gulf States has

agreed to the terms of this Consent Order in order to satisfy any

liability relating to the acts complained of by the Department in

its Motion to Enforce and to avoid the expense, inconvenience,

and distraction of protracted litigation.

The Department has agreed to the terms of this Consent

Order in order to terminate the controversy with Gulf States

regarding the allegations in its Motion to Enforce Consent Order

l6a

and the Department has determined that the terms contemplated

in this Consent Order are in the best interests of the citizens of

Alabama.

Therefore, the parties having filed a joint motion for Entry

of a Consent Order and good cause appearing, it is hereby

ORDERED, ADJUDGED, AND DECREED:

ARTICLE ONE

That with regard to emissions from the Basic Oxygen

Furnace (BOF) vessels, Gulf States Steel is ordered to comply

with the following schedule:

1. That effective immediately, and not later than 10 days

after issuance of this Order, the No. 2 Basic Oxygen Furnace

(BOF) vessel shall cease operation for the purpose of Gulf States

Steel installing moisture control sprays on the primary emission

control system of the melt shop. All new gas conditioning

equipment (moisture control sprays) and repairs to the system

must be installed and completed prior to the vessel being

operated again.

2. That effective immediately, and not later than 10 days

after issuance of this Order, Gulf States shall cease operation of

the No. 1 BOF vessel for the purpose of installing moisture

control sprays. All new gas conditioning equipment (moisture

control sprays) and repairs to the system must be installed and

completed prior to the vessel being operated again.

3. That Gulf States Steel shall maintain and operate the gas

conditioning equipment on the hoods of both vessels in a manner

which minimizes the emissions of particulate matter from the

BOF ESP.

4. That Gulf States shall construct an ESP which will

operate in parallel with the existing ESP in.controlling the

particulate matter emissions from BOF vessels and that the

ES, ME BIRR Te

17a

emissions from both paraliel ESPs will emanate from a single

Stack,

5. That the BOF shall be in full compliance no later than

January 1, 1993.

6. That stipulated penalties for any violations occurring

from the BOF after January 1, 1993 shall be due in accordance

with Article IV of this Consent Order for a period of 180

operating days of the BOF vessels.

ARTICLE TWO

That with regard to emissions from the Basic Oxygen

Furnace Building (BOFB) monovent, Gulf States Steel is re-

quired to comply with the following schedule:

1. No later than 10 days after issuance of this Order,.Gulf

States will complete the engineering for the installation of a

baghouse for the ancillary sources in the BOFB.

2. Construction of the baghouse to the ancillary sources in

the BOFB will be completed by December 31, 1992.

3. The baghouse will be in operation no later than January

1, 1993.

4. The emissions from the baghouse shall not exceed an

opacity of 5% based on a six (6) minute rolling average or have

emissions exceeding 0.04 grains per dry standard cubic foot.

5. Gulf States Steel shall submit permit applications for

the baghouse no later than 60 days after this Consent Order has

been executed.

6. The BOFB monovent will be in full compliance (with

Paragraph 4 of this Article) no later than January 1, 1993.

7. Stipulated penalties for the BOFB monovent for any

violations occurring after January 1, 1993 shall be in accordance

with the provisions of Article IV of this Consent Order for a

period of 180 operating days of the BOFB monovent.

18a

ARTICLE THREE

1. That Gulf States Steel shall pay within ten (10) days of

the issuance of this Order a penalty in the amount of $250,000.00

for all violations of the ADEM Admin. Code 335-3 cited in

attached Appendix A which is incorporated as if fully set out

herein.

2. That in addition to the aforementioned penalty for past

violations, Gulf States Steel shall construct and operate a

baghouse to control fugitive emissions from the coke shaker

screens at the blast furnace. Emissions from the baghouse shall

not exceed an opacity of 5% based on a six (6) minute rolling

average or have emissions exceeding 0.04 grains per dry stand-

ard cubic foot. That Gulf States Steel shall submit permit

applications no later than 30 days after this Consent Decree is

executed and operation of the baghouse must begin within 180

days after the Consent Order is executed.

3. That said penalty fully relieves Gulf States Steel from

the imposition of any other sanction by the Department with

respect to the violations of the ADEM Admin. Code 335-3 cited

in attached Appendix A.

ARTICLE FOUR

That if Gulf States Steel shall fail to comply with the terms

of Article One, paragraph 5 or Article Two, paragraph 6 of this

Consent Order, it shall pay to the Department stipulated penal-

ties as follows:

One thousand dollars ($1,000.00) for the first viola-

tion of any specified paragraph and amounts increas-

ing in One Thousand Dollar ($1,000.00) increments

for each subsequent violation for the first one hundred

and eighty (180) operating days of the source. For

violations occurring after one hundred and eighty

(180) operating days or other just cause, the Depart-

ment may apply to the court for such other relief that

19a

may be appropriate or elect to exercise any other

available enforcement measures, including ad-

ministrative enforcement measures. Violations of the

compliance dates may be documented by inspections

of the Department personnel, EPA and/or the inde-

pendent certified visible emissions observer provided

for in Article Five, paragraph 2.

ARTICLE FIVE

1. That by the 10th of every month, Gulf States Stee] shall

submit to the Department a report which specifies the progress

it has made regarding all the scheduled activities detailed in this

Consent Order and record any and all problems which were

identified and corrected during the previous month which re-

lated to air pollution and the applicable regulations governing

air pollution control in Alabama.

2. That Gulf States Steel shall hire a Department approved

independent certified visible emissions observer to conduct

visible emissions evaluations which shall be performed at ran-

dom. Each week, two hours of visible emissions evaluations

shall be conducted on each source subject to this consent order

during operation of the source; i.e, ESP stack and the monovent

after each source’s applicable compliance date.

3. That an independent consultant competent with EPA

Method Testing and approved by the Department shall conduct

a mass emissions test on the ESP, once a month for a period

beginning on the compliance date for the BOF and ending 180

operating days after the compliance date. Furthermore, during

each mass emission test, an independent certified observer shall

conduct a visible emission evaluation on the ESP, which shall

be in addition to the aforementioned weekly visible emission

evaluation.

4. That more than one violation per day on each source

may be documented and stipulated penalties apply.

20a

5. Furthermore, that said weekly visible emissions evalua-

tion tests shall be made without any advanced notice to Gulf

States Steel and the results of the visible emissions observations

and the mass emissions tests as described in Paragraph 3 of this

Article shall be reported directly to the Department by the

independent observer and/or the independent mass emissions

test consultant by the 10th of every month.

6. That it is further understood that Gulf States Steel will

not be liable for violations of the opacity limits of the ESP that

occur during the mass emissions test if the ESP complies with

the mass emissions limits.

ARTICLE SIX

That if any event occurs which- causes delays in the

achievement of compliance or of any compliance schedule for

controlling emissions or maintenance of compliance at Gulf

States Steel’s facility called for in this Order, Gulf States Steel

shall as soon as possible, but no later than fifteen (15) days after

the occurrence, notify in writing the Director of the Alabama

Department of Environmental Management, describing in detail

the length of the delay, the precise cause or causes of the delay,

the measures taken and to be taken by Gulf States Steel to

prevent or minimize the delay, and the timetable by which those

measures will be implemented. Gulf States Steel shall employ

all reasonable measures to avoid or minimize any such delay. If

any delays are caused solely by circumstances entirely beyond

the control of the owners or operators of Gulf States Steel’s

facility or of any entity controlling, controlled by, or under

common control with the owners and operators, the time for

compliance or for performance of the appropriate compliance

schedules will be extended by the Director for a period equal to

such delay resulting from such circumstances. The burden of

proving that the delay is caused by circumstances entirely

beyond the control of the owners and operators of the facility

shall rest with Gulf States Steel.

:

-

4

2la

ARTICLE SEVEN

1. That any penalty due under Article Four of this Consent

Order shall be paid to the Alabama Department of Environmen-

tal Management within twenty (20) days of receipt by Gulf

States Steel of written notification by the Department of penal-

ties due under said article, unless contested by Gulf States Steel.

If Gulf States Steel contests the fact of a violation as alleged by

the Department, Gulf States Steel shall, within twenty (20) days

of receipt of notice of the violation, file a Notice of Contest with

the Court, which shall thereafter decide the contest.

2. That this Court shall maintain jurisdiction over each

source that is the subject of this Consent Order to ensure that the

terms of this Consent Order are complied with and to resolve all

disputes which may arise out of this Consent Order. However,

after the time period of applicability of stipulated penalties for

cach source has expired, the Department may elect to institute

any available enforcement measures, including administrative

enforcement measures, to remedy any future violations of the

ADEM Admin. Code 335-3 by the sources covered and dis-

cussed in this Consent Order.

3. That any assigns and successors of Gulf States Steel,

Inc., GSSI, Inc., or the Brenlin Corporation shall be liable and

held accountable under the terms of this Consent Order without

limitation.

DONE and ORDERED on this the 17th day of December,

1991.

/s/

Circuit Judge

22a

- APPENDIX A -

A. During inspection of the No. 3 Coke Battery, the

Alabama Department of Environmental Management identified

violations of ADEM Admin. Code R. 335-3-4-.09(8) on the

following dates:

July 27, 1989

November 21, 1989

December 6, 1989

May 18, 1990

October 24, 2989

November 29, 1989

January 10, 1990

May 30, 1990

August 17, 1990

B. During an inspection of the No. 3. Coke Battery and the

pushing process on December 1, 1989, the Alabama Department

of Environmental Management identified a violation of ADEM

~ Admin. Code R. 335-3-4-.09(4)(a).

C. During an inspection of the No. 2 Coke Battery on

February 23, 1990, the Alabama Department of Environmental

Management identified a violation of ADEM Admin. Code R.

335-3-4-.09(8).

D. During inspection of the Basic Oxygen Furnace ESP,

the Alabama Department of Environmental Management iden-

tified violations of ADEM Admin. Code R. 335-3-4-.01(1) on

the following dates:

January 25, 1989

April 18, 1989

September 15, 1989

October 24, 1989

November 14, 1989

November 29, 1989

December 13, 1989

January 1, 1990

April 2, 1990

June 18, 1990

August 17, 1990

March 24, 1989

April 26, 1989

October 5, 1989

November 1, 1989

November 21, 1989

December 6, 1989

December 27, 1989

February 12, 1990

May 18, 1990

July 19, 1990

October 10, 1990

23a

December 26, 1990

July 30, 1991

E. During inspection of the Basic Oxygen Furnace Build-

ing monovent, the Alabama Department of Environmental

Management identified violations of ADEM Admin. Code R.

335-3-4-.17(1) on the following dates:

July 15, 1991

September 20, 1989

October 31, 1989

November 14, 1989

November 29, 1989

December 27, 1989

August 14, 1990

February 8, 1991

October 5, 1989

November 1, 1989

November 21, 1989

December 13, 1989

January 1, 1990

December 26, 1990

February 26, 1991

24a

APPENDIX E

Alabama Department of

Environmental Management

August 29, 1984

Mr. K.E. Hamby

Chief Engineer

LTV Steel Company

174 South 26th Street

Gadsden, AL 35901 |

RE: Facility No. 307-0008

Dear Mr. Hamby:

On August 15, 1984, Mr. John Hughes and Mr. Guy Brown

of the Air Division staff inspected the coke battery operations

at the Gadsden facility.

A visible emission evaluation of the #2 and #3 flue stacks

showed that neither were meeting the requirements of the

Alabama Department of Environmental Management, Air

Division Rules and Regulations, Section 4.9.8. Visible emis-

sions were greater than 20% opacity for a period greater than 3

minutes in an hour.

_Please explain the cause of said emissions and what actions

will be taken to correct these conditions. Written response

should be received by September 14, 1984.

Concerning the high number of standpipe lid leaks found

on Battery #3 during the above inspection, this appears to be a

maintenance problem correctable by proper supervision. It is

not the responsibility of these inspectors to point out those

conditions in order to have them corrected.

25a

; If there are any questions or clarification of the above is

j needed, please contact this office at 205/271-7861 in

Montgomery.

; Sincerely,

/s/

: Richard E. Grusnick, Chief

Air Division

REG/JTH:sd

NEARS ee A DO TE tl FED MAE IO DAIS, Hp RRO

26a

APPENDIX F

Alabama Department of

Environmental Management

September 25, 1984

MEMORANDUM

TO: Files

FROM: Ron Gore

SUBJECT: Meeting of September 21, 1984

with LTV Steel of Gadsden

Richard Grusnick, Sue Robertson, and I met with Billi

West, Buster Stewart, Ed Hamby, and Marylou Smith of LTV

Steel. The primary purpose of the meeting was to discuss

problems with the Nos. 2 and 3 coke batteries.

Bill West began by stating that the No. 2 battery was so far

past its useful life that no repairs could be made which would

bring the flue stack into compliance. He mentioned that some

measures, such as dusting with silicon dust for closing cracks,

could be tried but that these were stopgap. He inquired about

available enforcement mechanisms which would enable the No.

2 battery to operate until some agreed upon closure date.

Richard Grusnick mentioned EPA’s “limited life facility” policy

and the fact that this policy severely limits options on such

facilities. Mr. Grusnick said that any consent agreement or

similar enforcement mechanism for battery No. 2 would require

interim control measures, a firm date for closure with a surety

bond, and possibly penalties. Mr. Hamby and Mr. West dis-

cussed the coke shortages within LTV Steel and the loss of coke

oven gas that could result from a shutdown of battery No. 2.

Mr. West further delved into the issue of the “limited life

facility.” He stated that the policy allows for violating sources

OOS. eat inthe ~ nn lll

27a

to continue operation if a replacement facility is under construc-

tion. He wondered whether work scheduled on the No. 3 battery

to bring it up to its designed pushing rate could be considered

as a “replacement facility.” Mr. Hamby stated that maintenance

such as cleaning regenerators, flues and code side air boxes

would be performed to bring its production rate up from about

55 pushes per day (37 hour coke). Battery No. 3 is to be

inspected thoroughly next week to evaluate necessary work.

Bill West stated that they felt the No. 3 flue stack was in

compliance. Richard Grusnick indicated that we would make

an inspection within the next week to verify compliance.

Richard Grusnick then mentioned the EPA-State enforce-

ment agreement for FY 85 and the enforcement timetable it

contains. The LTV representatives agreed to send by November

1, 1984 a letter describing their plans for the coke batteries.

The next topic was Opacity problems from the BOF

precipitator. Mr. Grusnick stated that a letter would be sent

requiring a stack test by the end of October, in view of the fact

that it has not been tested since 1980. Mr. Hamby mentioned

labor problems and lack of maintenance as reasons for the poor

ESP performance. He said that LTV was considering a com-

plete internal rebuild of this 1965 vintage ESP. Ms. Robertson

emphasized malfunction reporting requirements for this unit, as

we had not received any calls from LTV on such incidents.

The differing EPA and Alabama interpretations of the

applicability of 4.1.1 opacity standards to casthouse and BOF

shop monovent emissions were discussed. LTV was told that

an opacity limit with an averaging time needs to be adopted to

insure that the BOF shop monovent emissions are minimized by

proper Gaw plate and furnace operation. Ms. Robertson stated

that she believes that we have performed enough opacity read-

ings to support a rollin g three minute average of 20%. However,

LTV wants to perform its own evaluation and agreed to com-

ment on this in its November 1, 1984 letter on the coke batteries.

28a

In discussing the sale of the plant, Bill West indicated that

Republic had until December 1, 1984 to sell the plant. Then the

court appointed trustee would have until May 1, 1985, to see the

plant. After May 1, 1985, it is unclear what will happen to the

plant.

RWG:sd

cc: John Hughes

DS Crews 4 -

PRISE NS AOL ED EE iB th! RIA LO a PE

a i

Ne ity SANE

29a

APPENDIX G

Alabama Department of

Environmental Management

September 25, 1984

Mr. K.E. Hambey

Chief Engineer

LTV Steel Company

174 South 26th Street

Gadsden, AL 35901

Dear Mr. Hambey:

The following is a summary of the topics discussed in our

meeting of September 20, 1984 as well as the dates by which

Republic will submit certain information to the Department:

Coke Battery No. 2 Flue Stack

Republic Steel will submit by November 1, 1984 a plan

addressing the mechanism and schedule that will be utilized to

return the flue stack to compliance with Section 4.9.8 of the

Department’s air regulations.

Coke Battery No. 3 Flue Stack

Republic indicated that any problems with the No. 3 stack

have been corrected. Members of my staff will inspect your

facilities in the near future to confirm compliance.

B.O.F. Precipitator Stack

During the inspection of August 28, 1984 visible emissions

in excess of Section 4.1.1 of the Department’s regulations were

observed from the B.O.F. precipitator stack. In order to verify

that the mass emissions are in compliance with Section 4.4.1,

an emission test for particulate matter is to be conducted by

30a

persons familiar with and using the EPA Sampling Train and

Test Procedure as described in the Code of Federal Regulations,

Title 40, Part 60, before October 31, 1984. The test report

should be submitted to the Department prior to November 15,

1984.

The Department must be notified at least 10 days in ad-

vance of the emission tests. A pretest meeting may be held if

Republic Steel so requests.

Redesignation to Attainment

It is the opinion of this Department that an opacity limit

must be established for the B.O.F. monovent as part of the

submittal to EPA to redesignate Etowah County as attainment.

If Republic will not agree to a limitation as a permit condition,

then another procedure such as a regulation change must be

used.

It was indicated that Republic wished to conduct visible

emission readings to supplement those conducted in the past. If

such readings are conducted, the Department should be notified

so that we can observe the operation of the furnace during part

of the observation periods.

The decision on whether a regulation change is the proce-

dure to be utilized in establishing an opacity limit should be

made as soon as possible. Your response to this issue is required

no later than November 1, 1984.

Name Change to LTV Steel Company

Please provide in writing the explanation given in the

meeting as to why it is not necessary for LTV Steel Company

to apply for Permits to Operate to be changed to their name. It

should be indicated who is responsible for compliance with the

environmental regulations at the Gadsden facility. This infor-

mation is requested prior to October 15, 1984.

3la

If clarification of the above is needed, please do not hesitate

to contact me at 205/271-7861.

Sincerely,

/s/

Richard E. Grusnick, Chief

Air Division

REG/SR:um

32a

APPENDIX H

Alabama Department of

Environmental Management

October 16, 1984

Mr. Kenneth Mean

Chief Engineer

LTV Steel Company

174 South 26th Street

Gadsden, AL 35901

Dear Mr. Mean:

As was discussed in our meeting of September 21, 1984,

and a subsequent letter to Mr. Ed Hamby confirming the results

of that meeting, LTV is to submit to this Department by Novem-

ber 1, 1984, a plan for bringing the flue stack on Battery #2 into

compliance with opacity standards as soon as possible.

However, since that meeting and letter, an inspection of

your facility by John Hughes of my staff revealed that two other

items regarding the coke batteries need mentioning. These

items were brought to the attention of Mr. Hamby and Mr.

Buster Stewart during Mr. Hughes’ October 2, 1984, inspection.

They are:

(1) The flue stacks on #3 battery violated opacity

limits (23 2 minutes greater than 20% compared

to the standard of 3 minutes or less per hour).

(2) 25.4% of the doors on Battery #2 leaked, in

violation of the allowed fifteen percent (15%).

In the reply to be submitted by LTV on the #2 flue stack

by November 1, please add similar plans for returning the

sources mentioned above into compliance.

Pa

tanec Vali Bb Daeshinas to tan bs

—e

33a

If you have any questions, please call me at 205/271-7861

in Montgomery.

Sincerely,

/s/

Richard E. Grusnick, Chief

Air Division

REG/RWG:sd

cc: Mr. John Hughes

34a

APPENDIX I

LTV Steel Company

October 31, 1984

Dr. Richard E. Grusnick

Chief, Air Division

Alabama Department of Environmental Management

1751 Federal Drive

Montgomery, Alabama 36130

Dear Dr. Grusnick:

In reply to ADEM’s requests of August 29 and October 16,

1984 regarding the Gadsden coke plant, LTV Steel submits the

following program to bring the facility into compliance with

Alabama air standards.

Following ADEM’s inspections of August 15 and October

2, 1984 it was determined that major capital must be spent on

battery No. 2 in order to bring it into compliance with regard to

the combustion stack and doors. It is proposed to begin two

projects early in November, the repair of pushing side spalls and

the regenerators, which would be completed by June 1, 1985.

In addition, a year-round maintenance program would be started

which would include an intensive patching program, an im-

proved door-repair program and foam spraying of the doors. It

is expected that initial patching on all ovens would be complete

by mid-June, 1985, at which time a second go-around would

begin. The other maintenance projects would continue on a

year-round basis. (See Schedule 1, attached)

With respect to battery No. 3, a similar program of major

repair and maintenance is proposed. The schedule is necessarily

longer than that of No. 2 because of preliminary engineering,

procurement and bidding that must precede the field work. A

35a

contractor has been retained to conduct an inspection of the

battery, which will begin the week of November 5, 1984.

Following his inspection and issuance of a report, LTV Steel

expects to proceed on the following repairs to the battery: gas

gun flues will be repaired; the waste heat boxes will be replaced;

and regenerator faces will be repaired. It is expected that these

major projects can be completed by mid-November, 1985.

In addition to the above, a year-round maintenance pro-

gram, similar to that proposed for battery No. 2, will be initiated.

Patching and dusting of all ovens will begin early in November,

with all ovens proposed to be covered by mid-June, 1985, at

which time a second go-around will begin. LTV Steel also plans

to increase door repairs on No. 3 battery and institute a foam-

spraying program. (See Schedule 2, attached)

With regard to the BOF monovent, as you are aware, a stack

test which will include visible emissions observations from the

monovent, will be conducted on October 29. As you requested,

the results of this test will be reported to you by November 15,

1984. At this time, LTV Steel will report to you as to what we

feel are appropriate visible emission limitations.

_ If you have any questions regarding the program proposed

above, please do not hesitate to call me.

Very truly yours

/s/

W.L. West

Director, Environmental Control

WLW: jc

0054a

be:

J.T. Bradford

W.L. Wiley

D.F. Brown

B.J. Fedak

D.H. Wakelin

M.L. Harmon

E.M. Stuart

J.N. Nichols

K.W. Means

J.D. Donohoe

T.A. Zalenski

36a

37a

APPENDIX J

Alabama Department of

Environmental Management

January 14, 1985

Mr. William L. West, Director

Corporate Environmental Control Department

LTV Steel Company

3100 East 45th Street

Cleveland, OH 44127

Dear Mr. West:

According to your letter of October 31, 1984, a contractor

was retained to perform an inspection on battery #3 and define

the scope of work on this battery. A copy of this report should

be forwarded to ADEM upon completion by the contractor.

Was a report similar to the one for battery #3 developed for

battery #2? If so, the report should also be submitted to ADEM.

If a report for battery #2 was not developed, please explain why

one was not developed.

The following information is also needed relative to the

proposed program for batteries #2 and #3.

1. The proposals for both batteries #2 and #3 should

contain more detailed descriptions, including man-

power and necessary materials involved, of the

proposed repairs.

2. A narrative relating the proposed repairs/maintenance

of the batteries to expected reductions in emissions.

38a

3. The field work portion of the schedule should include

the number of ovens that will be completed on a

bimonthly basis.

4. Please explain the difference between the scope of

work on batteries #2 and #3.

5. What are the specific dates for compliance for the

doors and flue stack for battery #2 and the battery #3

flue stack?

The BOF stack test submitted on November 13, 1984 has

been reviewed by the staff. Enclosed is a copy of our evaluation

sheet. All handwritten numbers above the printed numbers are

taken from the Guardian report.

In response to Ms. Harmon’s letter of November 29, 1985,

an evaluation of the 3 minute running averages that occurred

between beginning of charge and end of tapping indicates that

all averages above 25% occurred during the oxygen blow or

fluxing phase of the cycle. It is the opinion of the staff that these

emissions should not be occurring at this level and can be

corrected at minimal expense. Taking the above into considera-

tion, it would appear that a 3 minute, 20% opacity level is

appropriate.

In response to Ms. Harmon’s statement regarding the “ap-

parent conflict” with EPA’s method 9, the Director of ADEM

has the authority to specify test methods in accordance with

Section 1.8.1 of the Department’s air regulations.

I feel that another meeting between our staffs would be

beneficial in resolving these issues. I suggest January 28, 29, or

30 as good dates. The above information should be submitted

by January 28, 1985 even if we cannot meet during this time

frame.

Please contact Sue Robertson or Ron Gore at 205/271-7861

to confirm a time for our meeting. If you have any questions

regarding the above, please do not hesitate to call me.

eee ee

39a

Sincerely,

/s/

Richard E. Grusnick, Chief

Air Division

Aa -

REG/SR:um

Enclosure

cc: Buster Stewart

John Hughes

40a

APPENDIX K

Alabama Department of

Environmental Management

Mr. William L. West, Director

Corporate Environmental Control Department

LTV Steel Company

3100 East 45th Street

Cleveland, OH 44127

January 14, 1985 |

|

|

Dear Mr. West:

According to your letter of October 31, 1984, a contractor

was retained to perform an inspection on battery #3 and define

the scope of work on this battery. A copy of this report should

be torwarded to ADEM upon completion by the contractor.

Was a report similar to the one for battery #3 developed for

battery #2? If so, the report should also be submitted to ADEM.

If a report for battery #2 was not developed, please explain why

one was not developed. |

The following information is also needed relative to the |

proposed program for batteries #2 and #3. |

1. The proposals for both batteries #2 and #3 should

contain more detailed descriptions, including man- |

power and necessary materials involved, of the ,

proposed repairs.

2. Anarrative relating the proposed repairs/maintenance

of the batteries to expected reductions in emissions.

3. The field work portion of the schedule should include |

the number of ovens that will be completed on a

bimonthly basis.

4la

4. Please explain the difference between the scope of

work on batteries #2 and #3.

5. What are the specific dates for compliance for the

doors and flue stack for battery #2 and the battery #3

flue stack?

The BOF stack test submitted on November 13, 1984 has

been reviewed by the staff. Enclosed is a copy of our evaluation

sheet. All handwritten numbers above the printed numbers are

taken from the Guardian report.

42a

APPENDIX L

LTV Steel

Departmental Correspondence

Subject: Gulf States Steel Date: January 29, 1985

No. 3 Battery Inspection

To: J.N. Nichols

Attached is the report of the No. 3 Battery Inspection which was

conducted in November, 1984. The scope of the inspection

included oven refractory, steelwork, doors, jambs, heating, offtake

piping, and machinery.

Summary of Observations

Overall, the battery condition is good. There are, however,

some conditions which require attention. Wall, roof,

regenerator, and top refractories are generally good except for

several notable areas of deterioration: coke side wall spalls,

damaged gas gun block, and floor wear. Coke side spalls extend

from two io four flues and some coke side wall movement was

noted. Pusher side wall deterioration is generally limited to

vertical cracks and ram rub marks within the first flue. Exces-

sive carbon buildup is present at the oven wall/floor juncture

and at the oven ends. The latter condition may contribute to

improper support of the oven doors by the corbel brickwork

which will cause the aforementioned gun block deterioration.

Supporting steelwork and jambs are in good condition.

Door cleaning and repair frequency are inadequate to achieve

emissions standards. The battery heating system is in fair to

poor condition. The overall battery temperature is too high for

the present coking time and crosswall temperature profiles are

poor. The present condition of the heating system will limit the

gross coking time to 22 hours or 71 pushes per day. Cracked

43a

gooseneck and elbow castings are permitting flushing liquor to

spill onto the battery tops, buckstays, and doors. The No. 3

pusher ram is tracking to the north of the oven chamber. The

battery side door machine rail is badly worn and the coke guide

wheels are worn severely.

Major Recommendations

A complete list of recommendations begins on page 11 of the

report. Major recommendations are highlighted below.

A. Implement a trial heating program on ten consecutive

ovens to establish proper heating conditions. Following

completion of this program, adjust heating on the

remainder of the oven based upon trial results.

B. Closely monitor oven wall condition, particularly on the

coke side. Provide an inventory of coke side wall brick

for six walls, four flues deep, floor to roof.

C. Remove heavy carbon buildup at oven floors. Modify a

pusher side door to permit measurement of oven pressure

throughout the coking cycle. Adjust collecting main pres-

sure to assure a positive oven pressure at all times. A

negative pressure will permit air infiltration which will

aggravate carbon formation and refractory damage.

D. Investigate the cause of the pusher ram tracking to the

north. Shoe wear and/or ram misalignment are suspected.

E. Replace coke guide wheels and door machine inboard rail.

The above recommendations are complementary to the recom-

mendations made by Messrs. Hatters and Sundholm in the

attached trip report dated November 16, 1984. That report

recommends a patching/dusting program, improvements to the

heating system, and adoption of an intensive door repair pro-

gram.

A task force comprised of appropriate operating, maintenance,

environmental control, and engineering personnel has been

sn

44a

assigned to develop and implement programs necessary to ac-

complish the specified recommendations. Assistance is being

provided from Corporate Engineering, Research and other LTV

Coke Plant operations as required. Progress reports will be

issued on a monthly basis beginning in February.

ls/

B.J. Fedak, Director

Development Engineering

JILS:jg

cc: S.H. Beavers*

- J.T. Bradford, Jr.

D.F. Brown

W.R. Davidson*

W.C. Greer

H.D. Hatters*

W.H. Lusk*

K.W. Means**

E. Spirko*

J.L. Sundholm*

D.H. Wakelin

W.L. Weeks .

W.L. West**

W.G. Wiley, Jr.

*With wall inspection sheets.

**Previously issued.

45a

APPENDIX M

LTV Steel

Departmental Correspondence

Subject: Gulf States Steel Date: February 11, 1985

No. 2 Battery Inspection

To: J.N. Nichols

Attached is the report of the No. 2 Battery Inspection which was

recently performed.

Summary of Condition

Overall, the battery condition is deemed to be fair to poor. End

flue deterioration is severe on both sides and is characterized by

spalls, wall shifting, vertical racks, and offsets. Roofs are in fair

to poor condition due to large cracks and spalls. Oven floors are

severely worn and may be weakened to the point where insuf-

ficient strength exists to support the pusher ram. Corbel brick-

work also is in poor condition. Coal and coke deposits on the

battery top prevented evaluation of top side refractories.

Buckstays on both sides exhibit bowing and twisting. Some

jamb castings (particularly on the coke side) were noted to be

bowed and hourglassed. Both the coke side and pusher side

benches are leaning out, a condition caused by the outward fan

of the battery. The inside door machine rail is in very poor

condition.

Fuel gas piping is in good condition and basement housekeeping

is considered outstanding. Collecting mains are in poor condi-

tion. Standpipes are in fair condition, while 13 gooseneck

Castings are crackéd.

46a

Recommendations

¥

After each push, the oven should be inspected to deter-

mine if the oven condition warrants the next scheduled

charge. Large cracks, holes, etc. should be repaired

before the charge to minimize stack leakage.

The end flue brick repair program which was imple-

mented in 1984 must be continued.

Patching techniques recently implemented in No. 3 Bat-

tery as the result of training provided by Didier, GmbH.

should be adopted on No. 2. Silica dusting should also

be implemented if overall oven patching is successful in

minimizing leakage through larger cracks.

End closures (buckstays, jambs, face plates) should be

regularly inspected. Buckstays which present imminent

interference with operations (door machine travel, door

removal) and those which provide insufficient bearing to

prevent leakage which is not correctable by reasonable

means such as patching, should be replaced. Jambs which

are in such condition that door emissions regularly occur

with a “good” door and with foam spraying should be

replaced.

Collecting main pressure which was observed at 7.5 mm

W.C. has been raised to 9.0 mm. This increase should aid

in sealing oven wall cracks and reduce stack emissions.

A regular program of damper cleaning and replacement

of deteriorated gooseneck castings is necessary to mini-

mize the risk of wall damage from flushing liquor.

In view of the overall battery condition and the inherent limited

remaining battery life, major expenditures to restore battery

integrity are not recommended.

47a

ls/

B.J. Fedak, Director

Development Engineering

JLS:jg

cc: S.H. Beavers

J.T. Bradford, Jr.

D.F. Brown

W.R. Davidson

W.C. Greer

H.D. Hatters

W.H. Lusk

K.W. Means

D.H. Miller

E. Spirko

J.L. Sundholm

D.H. Wakelin

W.L. Weeks

W.L. West

W.G. Wiley, Jr.

48a

APPENDIX N

GULF STATES STEEL CORPORATION

Gadsden, Alabama

Interoffice Correspondence

February 4, 1984

J.N. Nichols

Vice President - Operations

A meeting was held in Montgomery, January 31, 1985, to

discuss environmental issues related to the Coke Plant and

B.O.F. Attending from Gulf States Steel were K.W. Means and

E.M. Stewart. Present from LTV Environmental Control were

W.L. West and D.H. Miller. Representing ADEM were Richard

Grusnick, Sue Robertson, Ron Gore and John Hughes.

The meeting was opened with a discussion of the Coke

Plant. Mr. Grusnick stated that it was their preference to address

doors and No. 3 battery stack first, since they felt these items

would be brought into compliance early. Also, they have doubts

that the program outlined for No. 2 battery will bring the stack

into compliance. ‘He also stated that they only want to include

No. 2 battery stack in the “order” if we feel No. 3 battery and

No. 2 doors will be in compliance within the next 2-3 weeks.

The discussion began with doors and an update on the

spray-foam process. We related to them that we have sprayed

20 doors and 18 of them have been sealed. The ADEM wanted

to know what was involved in the foam process, and if we

planned to keep spraying after the battery achieved compliance.

We discussed the process and explained that foaming was a

temporary measure, and that the door repair program we had

outlined would achieve compliance; however, we planned to

spray-foam as necessary.

Ai Wb rrntenct, cadet est WCB

9 ed rn tall cae

Ps hy abbas Senshi bie ets inthis hsb, Oe

49a

At this point, we discussed our door repair program and

updated them on our plans to send doors to an outside shop, as

well as repair them in-house. Mr. Grusnick asked when we

would have the doors in compliance. We replied that we were

not prepared to set a definite date, since the foam process had

just begun this week, and we had no feel for how long it would

take to cover both sides of the battery. He then suggested that

we delay a decision on a date for a couple of weeks to allow time

to evaluate the foam process.

The discussion then turned to No. 3 stack. We updated the

ADEM on what progress we had made, such as patching/dust-

ing, the hiring of Didier Engineering to instruct us on patch-

ing/dusting, and the ceramic welding that is going on this week.

Mr. Grusnick asked if we felt patching/dusting was responsible

for the fact that their readings of December 4, and January 16,

showed the stack was in compliance. We replied that patch-

ing/dusting was partly responsible, but other things that had

been done also contributed. Again, they asked for a specific date

when we felt No. 3 stack would be in compliance. We replied

that we felt it would be difficult to say No. 3 would be in

compliance 100% of the time because of such things as air box

replacements remaining to be done. Again Mr. Grusnick

recommended that we delay a decision on this item. He stated

it was their preference to resolve these two issues and not have

them a part of the “order,” and let us continue with the rest of

the program as we had outlined.

The discussion then turned to No. 2 stack. The ADEM

expressed their doubts that the program outlined would bring

No. 2 stack into compliance due to the age of the facility. They

asked if we had any doubts. We replied that there were doubts

anytime you dealt with a battery of this age, and that we had no

experience with any similar work having been done. However,

we stated that we are more optimistic now than when we started

the program.

50a

The discussion centered on the “order”, and the ADEM

Stated it would require the posting of a performance bond. We

asked how much the bond would be, and they replied that it

would be difficult to say on a project of this type. Normally, the

bond is 10%-15% of the cost of installing the mechanism to

correct the problem.

At this time, the B.O.F. monovent was discussed. ADEM

reiterated their desire for 20% opacity for 3 minutes. We stated

that we felt this limit was too strict, and that 40% was more

appropriate. Ms. Robertson produced a document she had

obtained from the City of Cleveland relating to B.O.F. emissions

at 20% for 3 minutes. Mr. West disputed her figures, and after

some discussion, she agreed to recheck her information. Mr.

West was asked to supply ADEM with any opacity limitations

imposed on other LTV plants. ADEM was asked if they must

have some measurable standard, would they be willing to dis-

cuss some other area other than the B.O.F. They were not

receptive to this idea. Also they said the original list of items

they gave us in regard to the attainment issue, such as washing

roads, treating unpaved areas, etc., would now have to have a

measurable standard. They attributed this and many other

things to the U.S. EPA.

Mr. Grusnick stated that he had never been to our plant and

would like to meet at our plant within the next two weeks. A

‘meeting was scheduled for Friday, February 15, at 10:30 A.M.

at the Gadsden plant.

The meeting was then adjourned.

During pre-meeting discussions with Mr. West and Mr.

Miller, it was learned that Research personnel have done much

work in charging, blowing, and fluxing practices. This work

has led to improvements in B.O.F. emissions by eliminating

“slopping” during the process. This has not only improved

emissions, but also increased yields by 1%-2%. I recommend

Sla

that these people visit our plant and share their expertise with

Melt Shop operators.

/s/

K.W. Means

Works Engineer

KWM: bcb

cc: W.L. Weeks

G.W. Freeman

S.H. Beavers

R.H. Kimberley

E.M. Stewart

W.R. Davidson ,

R.L. Amos

52a

APPENDIX O

GULF STATES STEEL CORPORATION

Gadsden, Alabama

Interoffice Correspondence

February 8, 1985

K.W. Means

Chief Engineer

SUBJECT: Coke Plant Air Inspection

On February 7, 1985, Mr. John Hughes of the Alabama

Department of Environmental Management (ADEM) - Air

Division conducted an inspection at the Coke Plant. The results

are as follows:

Pass/Fail % Actual

N Batter

Stack Failed 20.5 min.)20%

opacity/hr.

Doors Failed 17.7% leaks

Topside Passed 8% leaks

Charging Holes Passed 1.5% leaks

No. 3 Battery

Stack Failed 13.8 min.)20%

opacity/hr.

Doors Passed 7% \eaks

Topside Passed 6% leaks

Charging Holes Passed <1% leaks

% Allowed

3 min.)20%

opacity/hr.

15% leaks

10% leaks

5% leaks

3 min.)20%

opacity/hr.

15% leaks

10% leaks

5% leaks

SSDNA GUN NalaaD aR eta atin cite esas A 9, Phas ig enchant APC len

Is

3

=

=

3

53a

Mr. Hughes said that he will return for another inspection

on either Monday or Tuesday of next week.

/s/

E.M. Stewart

Environmental Engineer

EMS: bcb

Attachment

ec: J.N. Nichols

G.W. Freeman

S.H. Beavers

W.L. West

M.L. Harmon

54a

APPENDIX P

Alabama Department of Environmental Management

February 22, 198

MEMO

TO: File

FROM: Sue R. Robertson, Chief

Planning/Development Branch

Air Division

SUBJECT: Meeting with Gulf States Steel

(307-0008)

On January 31, 1985, a meeting was held in Montgomery,

Alabama to discuss the compliance status of the #2 and #3 coke

batteries. Those in attendance were as follows:

Dave Miller LTV Steel - Pittsburgh, PA

Kenneth Mean GS Steel - Gadsden, AL

Buster Stewart GS Steel - Gadsden, AL

Bill West LTV Steel - Cleveland, OH

Ron Gore ADEM - Air Division

Sue Robertson ADEM - Air Division

Richard Grusnick ADEM - Air Division

John Hughes ADEM - Field Operations Division

The discussion centered around four topics: (1) doors on

#2 and #3 coke battery, (2) #3 battery flue stack, (3) #2 battery

flue stack, and (4) a BOF shop opacity standard.

Doors on #2 and #3 Coke Battery

Mr. Grusnick stated the last inspection of the doors on #2

coke battery indicated that emissions have increased since the

last inspection and percent opacity on the #3 doors have also

increased to 15.4% (appive2"»": regulation allows 15% leakage).

It was also asked whether the increased cleaning program,

i.e., removing tar build up which allows for more leaks until the

——

55a

doors were rebuilt or realigned, was the reason for the increased

leaks and was it anticipated that the number of leaks would

increase further before they decreased?

Kenneth Mean stated that the equipment has arrived for

foaming the doors. It has been recommended that foaming

should be done every 4th push. So far they have done 20 doors,

18 have stopped leaking. They are buying the foaming equip-

ment so that LTV will be able to keep the program up.

They are using contractors, in addition to their own main-

tenance shop, to speed up door repairs.

Mr. Mean stated that LTV felt that excess door leakage on

#3 battery during the last inspection was due to chuck door leaks

caused by the pusher machine not setting the door back properly

after leveling the coal. This problem had hopefully been cor-

rected.

Mr. Dave Miller explained that the foaming technique was

not like mud luting. Experience at the J&L plant had shown that

when used like the traditional mud luting, it interferes with the

door mechanism. Instead, the foam is placed on the door edge

prior to the door being returned to the oven after a push.

When discussing how the schedule in an Order would be

written, LTV felt that compliance would be demonstrated very

soon. It was decided to evaluate door performance during the

month of February to determine whether it should be in the

Order.

#3 Underfiring Stack

LTV felt that the dusting program has been a major part of

the success in reducing stack emissions. They are doing ceramic

welding on cracks in the oven walls this week, also.

LTV is of the opinion that the #3 battery probably will

continue to show compliance and probably should not be in-

cluded in the Order.

56a

#2 rfirin

The schedule submitted by LTV indicates all work regard-

ing the #2 stack will be complete by November 26, 1985.

Discussion with LTV indicated that they will not state that the

battery stack will be in compliance by this date. Bill West stated

that he felt more comfortable about the stack now than in

September, but it was still too early to tell.

In discussing the #2 stack, Kenneth Mean stated that the

cause of the last high V.E. was a hole in one of the batteries

which was found after the oven was pushed and was repaired

immediately. He stated that these types of emissions should not

be considered a violation. We responded that due to the age and

condition of #2 battery this type of problem was no longer

considered an isolated instance when enforcement discretion

was appropriate.

BOF Monovent

LTV feels that based on availability and confidence level

of existing equipment that a 3-minute rolling average was not

appropriate. Also, this stringent a limitation had not been ap-

plied to any of the other LTV installations.

I stated that the old J&L plant in Cleveland was subject to

the 3-minute-20% aggregate rule according to the Cleveland Air

Pollution Program. Mr. West then stated while that may be true,

Region V had determined that the 6-minute rolling average was

equivalent to the 3-minute rule.

It was decided that ! would contact “Wojo” of Region V

regarding this interpretation.

It was decided the next meeting would be at the Gadsden

facility in February.

SRR: um

57a

APPENDIX Q

LTV Steel

Departmental Correspondence

Subject: Air Pollution Control Issues - Gadsden

Date: February 28, 1985 a

To: W.G. Wiley No: 0411b

Representatives of LTV Steel, Gulf States Steel, and the

Alabama Department of Environmental Management met in

Gadsden on February 27, 1985 to discuss the issue of non-com-

pliance with the Alabama regulations. Following an inspection

of the coke plant and BOF areas, Mr. Richard Grusnick, Chief

of ADEM’s Air Division stated the agency’s position as follows.

(1) Since Gulf States has recently demonstrated com-

pliance with the door emission standards, ADEM

would not be taking any enforcement action on this

item but would expect the company to maintain

compliance.

(2) While ADEM believes that Gulf States Steel has

made significant improvements in battery stack

emissions, compliance still has not been achieved

on a consistent basis. The agency accepts the

program previously submitted by LTV Steel to

bring the stacks into compliance. ADEM, there-

fore, intends to issue an administrative compliance

order to Gulf States which would require the fol-

lowing:

(a) | Ademonstration of compliance at the end of

the aforementioned program (November 26,

1985). :

(b) Aperformance bond of $150,000 per battery

to assure the achievement of compliance.

58a

The compliance bond would be returned

upon a demonstration of compliance.

The LTV Steel and Gulf States Steel representatives agreed

with the agency’s position on doors. We did object to the

amount of the bond and the November 26 compliance date for

stack emissions. Mr. Grusnick explained that ADEM’s policy

requires a performance bond equal to 10% of the capital cost of

the air control system needed to assure compliance. In this case,

the agency estimated a baghouse would cost $1,500,000 per

battery. To the final compliance date, Mr. Grusnick was amen-

dable to a 60 day period after November 26 for a compliance

demonstration. Further discussions will be necessary to define

the compliance test.

Mr. Grusnick expects to have a draft order available for

review by LTV Steel and Gulf States Steel within two weeks.

The agency would be amenable to suggestions by the companies

as long as the order complies with the agency’s requirements.

The agency's lawyers will be involved with negotiations on the

order.

59a

APPENDIX R

Alabama Department of

Environmental Management

Qctober 1, 1985

FEDERAL EXPRESS

J.D. Donohoe

Law Department

LTV Steel Company, Inc.

25 West Prospect Street

Cleveland, Ohio 44101

Dear Mr. Donohoe:

Enclosed are the most recent revisions of the proposed

Administrative Order and Surety Bond for Gulf States Stee]

Corporation, which reflect the changes we discussed during the

conference calls on August 26, 1985.

lease let me have your comments as soon as possible.

Sincerely,

/s/

Kerry J. Allen

Associate General Counsel

KJA/rdg

Enclosures

cc: Mary Lou Harmon

Kenneth Means

William L. West

Richard Grusnick

60a

ALABAMA DEPARTMENT OF

ENVIRONMENTAL MANAGEMENT

IN THE MATTER OF

GULF STATES STEEL CORPORATION

GADSDEN, ALABAMA

ORDER NO. AP-85

FINDINGS OF FACT

Pursuant to the provisions of the Alabama Environmental

Management Act, §22-22A-1 et seg., Code of Alabama 1975

(1984) and the Alabama Air Pollution Control Act, §§22-28-1

et seq., Code of Alabama 1975 (1984), the Alabama Department

of Environmental Management (hereinafter, “the Department’’)

makes the following FINDINGS OF FACT:

1. Gulf States Steel Corporation (hereinafter, “Gulf

States”), previously CKH Corporation, owns and operates an

integrated steel mil! (hereinafter, “the Gadsden facility”) in

Gadsden, Etowah County, Alabama.

2. On August 15, 1984, the Gadsden facility was ob-

served to be in violation of Section 4.9.8 (Combustion Stacks)

Chapter 4 - Control of Particulate Emissions, of the

Department’s Air Division Regulations in that visible emissions

greater than twenty percent (20%) for periods aggregating more

than three (3) minutes in any consecutive sixty (60) minutes

were observed.

Visible Emission

Source Readings >20%

Flue Stack on 21 minutes

#2 Coke Battery

Flue Stack on 19.5 mirputes

#3 Coke Battery

6la

3. On August 28-29, 1984, the Gadsden facility was

observed to be in violation of Section 4.9.8 (Combustion Stacks)

Chapter 4 - Control of Particulate Emissions, of the

Departmient’s Air Division Regulations in that visible emissions

greater than twenty percent (20%) for periods aggregating more

than three (3) minutes in any consecutive sixty (60) minutes

were observed.

Visible Emission

Source Readings >20%

Flue Stack on lst Hour - 55 minutes

#2 Coke Battery 2nd Hour - 41.5 minutes

3rd Hour - 15 minutes

Flue Stack on Ist Hour - 13 minutes

#3 Coke Battery 2nd Hour - 4.75 minutes

4. On October 2, 1984, the Gadsden facility was ob-

served to be in violation of Section 4.9.8 (Combustion Stacks)

Chapter 4 - Control of Particulate Emissions, of the

Department’s Air Division Regulations in that visible emissions

greater than twenty percent (20%) for periods aggregating more

than three (3) minutes in any consecutive sixty (60) minutes

were observed.

Visible Emission

Flue Stack on Ist Hour - 23.5 minutes

#3 Coke Battery 2nd Hour - 0 minutes

3rd Hour - 14.25 minutes

5. On December 5, 1984, the Gadsden facility was again

observed to be in violation of Secticn 4.9.8 (Combustion Stacks)

Chapter 4 - Control of Particulate Emissions. of the

Department’s Air Division Regulations in that visible emissions

greater than twenty percent (20%) for periods aggregating more

than three (3) minutes in any consecutive sixty (60) minutes

were observed.

62a

Visible Emission

Source Readings >2

Flue Stack on 7 minutes

#2 Coke Battery

6. On January 16, 1985, the Gadsden facility was ob-

served to be in violation of Section 4.9.8 (Combustion Stacks)

Chapter 4 - Control of Particulate Emissions, of the

Department’s Air Division Regulations in that visible emissions

greater than twenty percent (20%) for periods aggregating more

than three (3) minutes in any consecutive sixty (60) minutes

were observed.

Visible Emission

Source Readings >20%

Flue Stack on 59.5 minutes

#2 Coke Battery

7. On February 7, 1985, the Gadsden facility was ob-

served to be in violation of Section 4.9.8 (Combustion Stacks)

Chapter 4 - Control of Particulate Emissions, of the

Department’s Air Division Regulations in that visible emissions

greater than twenty percent (20%) for periods aggregating more

than three (3) minutes in any consecutive sixty (60) minutes

were observed.

Visible Emission

Source —Readings >20%

Flue Stack on 20.75 minutes

#2 Coke Battery

Flue Stack on 13.75 minutes

#3 Coke Battery

8. On February 22, 1985, the Gadsden facility was ob-

served to be in violation of Section 4.9.8 (Combustion Stacks)

Chapter 4 - Control of Particulate Emissions, of the

Department’s Air Division Regulations in that visible emissions

63a

greater than twenty percent (20%) for periods aggregating more

than three (3) minutes in any consecutive sixty (60) minutes

were obeserved.

Visible Emission

Source Readings >20%

Flue Stack on 18.25 minutes

#3 Coke Battery

9. On March 14, 1985, the Gadsden facility was again

observed to be in violation of Section 4.9.8 (Combustion Stacks)

Chapter 4 - Control of Particulate Emissions, of the

Department’s Air Division Regulations in that visible emissions

greater than twenty percent (20%) for periods ag gregating more

than three (3) minutes in any consecutive sixty (60) minutes

were observed.

Visible Emission

Source Readings >20%

Flue Stack on 9.75 minutes

#2 Coke Battery

Flue Stack on 4.24 minutes

#3 Coke Battery

10. The lack of continual maintenance of Coke Batteries

#2 and #3 has contributed to the violations cited in items 2

through 9, above.

64a

ORDER

Based upon the foregoing FINDINGS OF FACT and pur-

suant to Code of Alabama §22-22A-5(10) and §22-28-10(2), it

is hereby ORDERED:

A.

Prior to a change in ownership or use of any source covered

by this Order, Gulf States shall notify each transferee, in writing,

of the existence of this Order and of its binding effect upon Gulf

States. A copy of such notification shall be provided to the

Department showing that a copy of this Order was provided to

each transferee by Gulf States. Gulf States shall be liable for all

requirements of this Order as to such source during any period

of ownership or use by Gulf States.

B.

1. Compliance with Section 4.9.8 of the Department's

Air Division Regulations shall be achieved for #2 Coke Battery

by November 30, 1985.

2. Compliance with Section 4.9.8 of the Department’s

Air Division Regulations shall be achieved for #3 Coke Battery

by October 31, 1985.

3. Compliance with Section 4.9.8 of the Department's

Air Division Regulations shall be determined by 40 C.F.R. 60,

Appendix A, Method 9 and the following procedures:

(a) Visible emission observers shall be certified in ac-

cordance with the procedures specified at 40 C.F.R. Part 60,

Appendix A, Method 9.

(b) The provisions of Method 9, Section 2.5, shall not be

used to determine compliance with the visible emission perfor-

mance standards.

65a

(c) In determining compliance, the emission standard

shall not be construed to require three consecutive minutes of

readings greater than twenty percent (20%) opacity.

(d) Each momentary observation that is recorded at 15-

second intervals shall be used to determine compliance with the

standard. Each observation that is greater than twenty percent

(20%) opacity shall be counted in determining the hourly ag-

gregated period.

(e) In making observations of stack emissions, the reader

shall be positioned in accordance with the provisions of Section

2.1 of Method 9.

(f) Visible emission observations for the determination

of compliance shall be conducted during the hours that the Coke

Battery is being charged and/or pushed.

C.

By November 1, 1985, Gulf States shall post Surety Bonds

in the total amount of $200,000 to insure compliance with the

above provisions. Said Surety Bonds are Surety Bond “A” and

Surety Bond “B”, which are attached hereto and hereby made a

part of this Order. The failure of Gulf States to comply with any

of the provisions of this Order shall constitute cause for the

forfeiture of part or all of the Surety Bonds, according to their

terms. Release of said Surety Bonds shall be made upon

demonstration of compliance for the applicable Coke Battery or

upon a bonafide and complete sale of the Gadsden facility by

Gulf States, according to the procedure described in each Bond.

D.

The terms and requirements of this Order shall terminate

only upon demonstration of compliance for both #2 and #3 Coke

Batteries, or upon a complete and bonafide sale of the Gadsden

facility, as specified in Surety Bond “A” and Surety Bond “B”,

and upon release of said Bonds by the Department. Failure to

66a

comply with the provisions of this Order shall constitute cause

for the commencement of legal action by the Depariment for the

recovery of civil penalties or other appropriate relief.

ORDERED and ISSUED this Ist day of October 1985.

Joe B. Broadwater, Director

Alabama Department of

Environmental Management

1751 Federal Drive

Montgomery, Alabama 36130

(205) 271-7700

67a

APPENDIX S

Alabama Department of Environmental Management

October 18, 1985

MEMORANDUM

TO: David Ludder, General Counsel

FROM: Kerry Allen, Associate General Counsel

SUBJECT: Proposed Administrative Order to Gulf States

Steel Corporation

A draft administrative order was sent to Gulf States Steel

Corporation on August 20, 1985, and a Show Cause meeting

was held on September 4. In attendance were Jim Donohoe,

attorney for LTV Steel, Mary Lou Harmon also of LTV, and

Stanley Holcolm and Kenneth Means of Gadsden, as well as

Richard Grusnick, Sue Robertson, and Ron Gore of the Air

Division, and myself.

Gulf States’ objections to the draft order were, as follows:

A. Findings of Fact - none stated.

B. Order portion:

l.

A great many of the requirements of the order for

repairs or replacement of ovens and components

have already been met (letter confirming this

received October 1).

Compliance demonstration should be defined

and the procedure for demonstration spelled out

in the order (agreed to by Air Division).

Gulf States did not intend and should not be

required to make a second repair cycle for all

ovens now repaired or needing repair (Gulf

States offered to inspect and patch ovens as

needed after each push).

68a

4. Bonds required by the order are too expensive

and present too great a risk for Gulf States’

precarious financial condition. Gulf States also

wished to demonstrate compliance earlier than

the date required by the draft order.

These and other adjustments in language and requirements of

the bonds and order were made and sent to all participants on

September 6. In a conference call on September 24 involving

the same personnel, Gulf States altered their offer to inspect and

repair ovens after each use, objected to the compliance test

procedures as outlined by the Department, and again objected

to the amount of the bonds to be obtained, as well as to the

forfeiture schedule.

As a result of two conference calls held on September 26, the

Department’s compliance test and forfeiture schedule were

agreed to. The bond amounts were lowered to $100,000 per

battery. Both the bonds and proposed order were again redrafted

and mailed on October 1. On October 9, Jim Donohoe called to

request a change in the bond language and to say he would know

in approximately one week if the bonds could be obtained. To

date, no word regarding the bond availability has been received.

RECOMM ATION:

Over one-half of the month (October) during which Gulf States

intended to demonstrate compliance for one of the batteries has

now elapsed. A great deal of time and energy has been expended

on meetings, correspondence, drafts and redrafts of documents

and telephone calls, even prior to involvement of this office.

Gulf States appears to be reluctant to commit to any definite

program to achieve long-term compliance of this facility be-

cause of the always-imminent sale of the plant, low profitability,

and what appears to be a general pattern of poor management

aimed at short-term results. Short of legal action, which may

threaten continued operation (or sale) of the plant, the

69a

Department’s options range from tolerating the violations to

EPA involvement, which becomes more likely with time.

With regard to the administrative order, I would recommend its

[...] in its present form should Gulf States agree to voluntarily

post bonds in the required amount, but would remind the Depart-

ment that the lack of statutory authority to require bonds makes

the order, or later forfeiture demands, subject to this defense.

In the event that the bonds cannot be obtained, or where no

definite determination is made in the next few days, I would still

recommend issuance of the order, omitting the bond require-

ment, redefining the compliance test procedure to coincide with

the present regulations, and prescribing a stringent but

reasonable repair schedule and recordkeeping requirements, as

determined by the Air Division to more likely result in continued

compliance, to remain in effect until appropriate controls are

installed or until all violations are eliminated for a six month

period or longer. Such requirements would be defensible as-

suming they were reasonable, likely to lead to continued or

greater compliance, similar to those already proposed (and

withdrawn) by Gulf States, and the Department was willing to

forego legal action for past and ongoing violations so long as

the order was obeyed. In the event of a prolonged administrative

or legal challenge to an order in this form, it could be withdrawn

and legal action to redress all past and continuing violations

could be instituted at that point.

KJA/rdg

oe Richard Grusnick

70a

APPENDIX T

LTV STEEL

LAW DEPARTMENT

DEPARTMENTAL CORRESPONDENCE

Subject: Coke Battery Nos. 2 & 3

ADEM Consen rN lation

Date: November 11, 1985

To: W.L. Weeks

No: 1806B

The purpose of this letter is to memorialize the substance

of various telephone conversations I have had with Kerry Allen

concerning the Administrative Order we have been negotiating

over the past several weeks with respect to the combustion

stacks of coke battery nos. 2 and 3 at Gadsden. As you know,

Kerry Allen is the Associate General Counsel of the Alabama

Department of Environmental Management (ADEM) and is the

principal ADEM lawyer involved in this matter.

By way of background, I think it is important to review, for

the record so to speak, the status of the negotiations between

Gulf States Steel and ADEM. Essentially, the terms of the

Administrative Order had been finalized. A copy of the latest

draft of that Order, which accompanied Kerry Allen’s October

1, 1985 letter to me, is attached. Among other things, the

proposed Order required the posting of a $100,000 surety bond

for each battery. The bonds would be forfeited or released -

pursuant to the terms of the Order.

At my request, Tom Ward attempted to secure the two

surety bonds in accordance with established procedures. In that

connection I enclose herewith a copy of Mr. Ward’s October 4,

1985 letter to Mr. Michael D. Ross of Marsh & McLennan, Inc.,

as well as a copy of Mr. Ross’s reply to Tom Ward of October

Tila

14, 1985. As you can see from this correspondence, Aetna is

unwilling to issue the surety bonds at this time. I have been

advised by Tom Ward that there is no possibility that any other

insurance company will issue these bonds to Gulf States Steel.

On October 20, 1985, I informed Kerry Allen that Gulf

States Steel was unable to secure the surety bonds at this time.

After reviewing the matter with Mr. Richard Grusnick, Ms.

Allen informed me that although it was displeased with that turn

of events, ADEM had not made a decision to initiate formal

enforcement action against Gulf States Steel with respect to the

combustion stacks of battery nos. 2 and 3. Ms. Allen further

informed me that ADEM would be inspecting the battery stacks

frequently and that the ADEM did not contemplate bringing any

formal enforcement action against Gulf States Steel so long as

the combustion stacks of battery nos. 2 and 3 were in compliance

with applicable regulations. Ms. Allen, of course, cautioned that

she could not speak for the U.S. EPA with respect to either past

or future violations of applicable regulations.

Under the circumstances, it does not appear that the posi-

tion of Gulf States Steel can be significantly enhanced by

continuing negotiations with the ADEM for an Administrative

Order. The only reasonable alternative to a surety bond, is for

Gulf States Steel to offer to put up cash or some other collateral

in lieu of the surety bonds. The significant advantage to Gulf

States Steel that the proposed Order would have provided,

namely protection against a formal enforcement action and

avoidance of potentially higher penalty exposure, appears, in

light of Ms. Allen’s remarks, to be obtainable without the

consent order if the battery stacks are maintained in compliance

with applicable regulations. The other principle advantage of

the Order would have been to forestall federal enforcement

action by the U.S. EPA. However, as long as the battery stacks

are maintained in compliance in the future, it would appear that

72a

the risk of feceral enforcement with respect to past violations is

minimal.

In view of the above, it is our recommendation that no

further efforts on our part be initiated to negotiate the proposed

Order. If you have any questions concerning the above com-

ments or would like to discuss the matter further in any way,

please do not hesitate to get in touch.

/s/

James D. Donohoe

JDD:cm

Enclosures

cc: M.L. Harmon

S. Holcombe

J.P. Kelly

K.W. Means

C.L. Medford

W.L. West

T.A. Zalenski

73a

APPENDIX U

Alabama Department of

Environmental Management

January 9, 1986

CERTIFIED MAIL, No. P 686 585 497

RETURN RECEIPT REQUESTED

Mr. Kenneth Means

Environmental/Engineering Manager

Gulf States Steel Corporation

174 S. 26th Street

Gadsden, AL 35901

Dear Mr. Means:

This Notice of Violation is issued for exceedances of

visible emission limits noted during inspections in December,

1985. The specific violations are:

Application Visible

ADEM Emission

Source Date Regulation Reading

#2 Coke Dec. 17,1985 Section 4.9.8 1314 minutes

Battery out of 15

Stack minutes

greater than

20% opacity

#2 Coke Dec. 27,1985 = Section 4.9.8 1614 minutes

Battery out of 60

Stack minutes

greater than

20% opacity

#2 Coke

Battery

Stack

#3 Coke

Battery

Stack

#3 Coke

Battery

Stack

Basic

Oxygen

Furnace

Shop Roof

Monitor

Basic

Oxygen

Furnace

Shop Roof

Monitor

. 30,1986 Section 4.9.8

. 27, 1985

Section 4.9.8

. 30, 1985

Section 4.9.8

. 27, 1985

Section 4.17.1

. 30, 1985 Section 4.17.1

414 minutes

out of 60

minutes

greater than

20% opacity

1144 minutes

out of 60

minutes

greater than

20% opacity

31 minutes

out of 60

minutes

greater than

20% opacity

3 minute

averages of

35.4%, 67.2%,

and 63.8%

3 minute

averages of

20.5%, 23.3%,

35.4%, 27.5%,

and 43.8%

Not later than January 24, 1986, you are requested to file

with the Department a full written report showing the steps that

have been taken and are being taken to correct the violations.

Such report should be mailed or delivered to the undersigned at

the Department. Failure to file a report showing expeditious

corrective actions could result in the revocation of your Permits.

75a

Should you have any questions concerning this matter,

please contact me at 205/271-7861.

Sincerely,

/s/

Richard E. Grusnick, Chief

Air Division

REG/RG:um

cc: John Hughes

76a

APPENDIX V

ALABAMA DEPARTMENT OF

ENVIRONMENTAL MANAGEMENT

June 13, 1986

CERTIFIED MAIL 686585753

RETURN RECEIPT REQUESTED

Mary Teresa Sobnosky

Amer Cunningham Brennan Co.

First National Tower

Akron, Ohio 44308

Dear Ms. Sobnosky:

RE: Gulf States Steel, Inc.

Enclosed please find Administrative Order No. 86-081-WP

which requires Gulf States Steel, Inc. to take certain actions

regarding the discharge of pollutants into waters of the State. In

issuing this Order, the Department has considered the comments

you made at our meeting. You will note that certain changes

have been made in accordance with the information you sub-

mitted at that meeting.

Please be advised that failure to comply with the terms of this

Order can result in penalties of up to $25,000 per day for each

violation, as well as possible criminal penalties.

If you have any questions, please feel free to contact me.

77a

Sincerely,

/s/_

Olivia Hardy Hudgins

Associate General Counsel

Enclosure

cc: Charles Horn, Chief

Water Division

Jim Moore, Water Division

Industrial Branch

Dave Olson, EPA

Region IV

TT

78a

ALABAMA DEPARTMENT OF

ENVIRONMENTAL MANAGEMENT

IN THE MATTER OF

GULF STATES STEEL, INC.

GADSDEN, ALABAMA

ORDER NO. 86-081-WP

FINDINGS OF FACT

Pursuant to the provisions of the Alabama Environmental

Management Act, Code of Alabama 1975, §§ 22-22A-1 to

22-22A-15 (1984), the Alabama Water Pollution Control Act,

Code of Alabama 1975, §§ 22-22-1 to 22-22-14 (1984), and the

National Pollutant Discharge Elimination System administered

by the Alabama Department of Environmental Management

(hereinafter, “the Department”) and approved by the Ad-

ministrator of the U.S. Environmental Protection Agency pur-

Suant to the Federal Water Pollution Control Act § 402, 33

U.S.C. § 1342, the Department makes the following

FINDINGS OF FACT:

1. Gulf States Steel, Inc. (hereinafter, “the Operator’)

operates an integrated iron and steel production facility located

in Gadsden, Alabama.

2. Code of Alabama 1975, § 22-22-9(j) (6) (1984)

provides that “every person, prior to discharging any new or

increased pollution into any waters of this state Shall apply to

the [Department] in writing for a permit and must obtain such

permit before discharging such pollution.” ADEM Admin.

Code R. 6-6-.03 provides that “{n]o person shall discharge

pollutants from a point source into waters without first having

obtained a valid NPDES [National Pollutant Discharge Flimina-

tion System] permit... .”

79a

3. The NPDES permit issued to the previous owner of the

Gadsden facility expired September 1, 1980, and since that time

no NPDES permit has been issued for the Gadsden facility. The

Operator has initiated the process of obtaining a NPDES permit.

4. Qn February 14, 1986, the Operator discharged pol-

lutants and other industrial wastes from a point source to Black

Creek, a water of the state.

ORDER

Based upon the foregoing FINDINGS OF FACT and pur-

suani to Code of Alabama 1975, §§ 22-22A-5(10), 22-22-9(c),

22-22-9(j), and 22-22-9(1) (1984) and the National Pollutant

Discharge Elimination System administered by the Department

and approved by the Administrator of the U.S. Environmental

Protection Agency under the National Water Pollution Control

Act § 402, 33 U.S.C. § 1342 it is hereby ORDERED:

A. That not later than 180 days after receipt of notice of

this Order, the Operator shall either obtain a NDES permit

authorizing discharges from a point source to Black Creek, or it

shall terminate all unpermitted discharges from its facility to

waters of the state.

B. That the failure to comply wiih the provisions of this

Order shall constitute cause for the commencement of legal

action for the recovery of civil penalties, criminal fines, or other

appropriate relief by the Department against the Operator.

C. That issuance of this Order does not preclude the

Department from seeking civil penalties, criminal fines, or other

appropriate sanctions or relief against the Operator for the

violations stated herein.

ORDERED and ISSUED this 12th day of June 1986.

/s/

Leigh Pegues, Director

Alabama Department of

Environmental Management

1751 Federal Drive

Montgomery, Alabama 36130

(205)271-7700

8la

APPENDIX W

UNITED STATES

ENVIRONMENTAL PROTECTION AGENCY

REGION IV, 349 COURTLAND STREET

ATLANTA, GEORGIA 30365

March 30, 1987

Mr. John Poole, Jr.

Water Division

AL Dept. of Environmental Mgmt.

1751 Federal Drive

Montgomery, Alabama 36130

RE: Unresolved 301(g) Requests

Dear Mr. Poole:

According to our records, there are currently 3 pending

Section 301(g) variance requests for which ADEM has not yet

taken any action. These requests are:

Facility NPDES No. Parameter

Republic Steel -

Gadsden AL0003522 total phenols, NH3

Republic Steel -

Thomas AL0003531 total phenols, NH3

Reynolds Aluminum ALO000035 aluminum -

Alloys Plant

aluminum, fluoride -

Listerhill Plant

aluminum, NH3 -

Alabama

Reclamation

Plant

82a

Under the provisions of the recently - passed Water Quality Act

of 1987 (February 4, 1987), all pending applications as of the

date of enactment of this Act must be approved or disapproved

by the Administrator of EPA within 365 days of the date of

enactment. In order to meet this requirement, we request that

ADEM resolve these pending requests as soon as possible. As

you are aware, Region IV cannot review a request until State

action is completed. If a facility is not currently discharging, we

recommend that its 301(g) request be inactivated now and that

it be re-applied for upon resumption of the discharge.

Also under the provisions of the new Act, requests for

301(g) variances are restricted to and can only be made for the

parameters ammonia, chlorine, iron, color, and total phenols

(AAP). Consideration of other parameters can only be given if

petitions are made and special listing criteria are met (see

enclosure).

Please advise me of the status of these pending requests.

Please call me at (404) 347-3012 if you have any questions.

Sincerely yours,

/s/

Marshall Hyatt

Environmental Scientist

Facilities Performance Branch

Water Management Division

Enclosure

83a

APPENDIX X

ALABAMA DEPARTMENT OF

ENVIRONMENTAL MANAGEMENT

July 14, 1987

Mr. Marshall Hyatt

Environmental Scientist

Water Management Division

Environmental Protection Agency

345 Courtland Street

Atlanta, GA 30365

Dear Mr. Hyatt:

Re: 301(g) Variance Request

Republic Steel - Gadsden NPDES No. AL0003522

Republic Steel - Thomas Plant NPDES No. AL0003531

This is in response to your March 30, 1987, !etter regarding the

status of several 301(g) variances requests on which the Depart-

ment has taken no formal action.

The Republic Steel facility in Thomas has been inactivated and

torn down. The variance request for this facility is no longer

valid.

The Republic Steel facility in Gadsden has been purchased and

is now Gulf States Steel, Inc. The Department has been working

on reissuance of Gulf States Steel’s NPDES permit for several

months. Our discussions with representatives of Gulf States

Steel indicate that they wish tc keep the variance request open

for the interim period, pending th utcome of negotiations and

issuance of their NPDES permit.

84a

As you may be aware, when the Iron and Steel Guidelines were

promulgated, the Gadsden facility was one of 21 facilities which

were excluded from meeting those guidelines pending develop-

ment of alternative guidelines for central treatment facilities. To

date, guidelines for the Gadsden plant have not been finalized

by EPA. Since we have no guidelines to utilize for a permitting

rationalizing we will be proposing a BPJ permit which will

address water quality standards and may or may not be in

accordance with existing Iron and Steel Guidelines.

In the absence of promulgated effluent guidelines, the Depart-

ment is notifying EPA that it is making no recommendation in

response to the 301(g) variance request for the Gulf States Steel

facility in Gadsden.

Should you have any questions regarding this matter, please do

not hesitate to contact me.

Sincerely,

/s/

John A. Poole, Jr.

Chief

Industrial Branch

Water Division

JAP: bjp

cc: Mr. Kenneth Means

Weston Services, Inc.

8Sa

APPENDIX Y

MAYNARD, COOPER, FRIERSON & GALE, P.C.

ATTORNEYS AT LAW

TWELFTH FLOOR WATTS BUILDING

BIRMINGHAM, ALABAMA 35203

(205) 252-2889

TELECOPIER (205) 252-2958 or 251-1703

TELEX 38-3452

September 14, 1988

Mr. Kenneth Means

Mr. Buster Stewart

Gulf States Steel, Inc.

174 South 26th Street

Gadsden, Alabama 35904

Re: Administrative Order No. 88-C81-WP

Dear Kenneth and Buster:

Enclosed please find a new Findings of Fact executed by

Leigh Pegues. This new version corrects some typographical

errors that were in the old version

if vou have any questions about this please feel free to give

me a call.

Very truly yours,

/s/

H. Thomas Wells, Jr.

HTW, Jr./psr

Enclosure

86a

ALABAMA DEPARTMENT OF

ENVIRONMENTAL MANAGEMENT

September 12, 1988

Mr. Thomas H. Wells, Jr.

Maynard, Cooper, Frierson & Gale

Twelfth Floor Watts Building

Birmingham, Alabama 35203

Dear Mr. Wells:

RE: Administrative Order No. 88-081-WP

Our file # WP-15-157

Enclosed please find a copy of Administrative Order No.

88-081-WP in which several typographical errors included in

the original order have been corrected.

If you have any questions, please feel free to call me.

Sincerely,

—

Olivia H. Jenkins

General Counsel

OHJ/daf

Enclosure

87a

ALABAMA DEPARTMENT OF

ENVIRONMENTAL MANAGEMENT

IN THE MATTER OF

GULF STATES STEEL, INC.

GADSDEN, ALABAMA

NPDES PERMIT NUMBER AL0055239

ORDER NO. 88-081-WP

FINDINGS OF FACT

Pursuant to the provisions of the Alabarna Environmental

Management Act, Code of Alabama 1975, 3322-224. through

22-22A-16 (1984 and 1987 Cum. Supp.), the Alabama Water

Pollution Control Act, Code of Alabama 1975, §§22-22-1

through 22-22-14 (1984 and 1987 Cum. Supp.) and the National

Pollutant Discharge Elimination System administered by the

Alabama Department of Environmental Management

(hereinafter “the Department’) and approved by the Ad-

ministrator of the U.S. Environmental Protection Agency pur-

suant to the Federal Water Pollution Centro] Act. § 402, 33

U.S.C. § 1342, the Department makes the following FINDINGS

OF FACT:

1. Gulf States Steel, Inc. (hereinafter “the Permittee’)

operates an integrated steel making facility located in Gadsden

Alabama.

2. On December 4, 1987 the Department issued NPDES

Permit Number AL0055239 to the Permittee authorizing the

discharge of pollutants, industrial wastes and other wastes sub-

ject te certain terms, limitations and conm#itions. form a point

source designated therein as DSN-001 to Black Creek, a water

of the state.

3. Among the terms, limitations and conditions contained

in said permit are daily maximum and daily average discharge

88a

limitations for ammonia nitrogen (NH3-N), total cyanide

(Cn,T), total zinc (Zn,T) and total lead (Pb,T). Said discharge

limitations are as follows:

NH3-N Cn,T Za,T Pb,T

(mg/l) = (mg/1) (mg/l) (mg/1)

Daily Maximum 0.67 0.02 0.18 0.03

Daily Average 0.67 0.02 0.18 0.03

4. The Permittee has violated these discharge limitations

as follows:

Date NH3-N Cn,T Zn,T Pb,T

(mg/l) (mg/1) (mg/l) (mg/1)

12/09/87 0.88 0.034 0.25 0.08

12/09/87 1.35 0.065 0.030 0.08

12/11/87 1.90 0.046 0.24 0.04

12/14/87 1.55 0.038 0.47 0.15

12/15/87 1.98 0.046 0.35

12/16/87 1.37 0.038 0.23

12/17/87 1.55 0.075 0.28

12/18/87 1.19 0.056 0.27

12/20/87 1.70 0.030 0.46

12/21/87 1.03 0.045 0.23

12/22/87 1.16 0.060 0.33

12/23/87 1.33 0.054 0.29

12/24/87 1.17 0.032 0.25

12/27/87 1.55 0.023

12/28/87 1.31 0.042 0.47

12/29/87 1.58 0.046 0.29

12/30/87 1.23 0.062 0.28

12/31/87 1.62 0.036 0.26

12/87 average 1.4] 0.050 0.30

01/03/88 1.15 0.03 0.29

01/04/88 1.39 0.10 0.25

01/05/88 1.29 0.05 0.20

89a

01/06/88 1.25 0.05

01/07/88 1.23 0.10 0.23

01/10/88 1.27 0.27

01/11/88 1.01 0.18 0.04

01/12/88 1.23 0.12

01/13/88 2.06 0.16

01/14/88 1.07 0.17

01/17/88 0.92 0.12

01/18/88 1.03 0.13 0.24

01/19/88 1.09 0.14

1/20/88 0.78 0.06

01/21/88 0.27 0.11 0.27

01/24/88 1.42 0.14

01/25/88 1.31 0.13

01/26/88 1.19 0.12

01/27/88 1.35 0.15 0.19

01/28/88 2.15 0.1 0.2

01/31/88 0.97 - 0.08

01/88 average 1.26 0.12

02/01/88 1.77 0.05

02/02/88 1.92 0.07

02/03/88 1.22 0.06 0.22

02/04/88 1.39 0.09

02/07/88 1.29 0.14 0.20

02/08/88 1.35 0.04

02/09/88 1.13 0.06 0.21

02/10/88 1.27 0.14 0.27

02/14/88 1.09 0.06

02/15/88 0.95 0.08

02/16/88 0.96 0.07

02/17/88 1.07 0.08

02/18/88 1.20 0.08 0.22

02/21/88 1.75 0.13 0.19

02/22/88 1.23 0.10 0.24

02/23/88 1.87 0.09

90a

02/24/88 1.44 0.07

02/25/88 5.58 0.11

02/28/88 1.03 0.04

02/29/88 0.92 0.11

02/88 average 1.49 0.08

03/01/88 0.87 0.15

03/02/88 0.85 0.09 0.21

03/03/88 2.09 0.10 0.23

03/06/88 1.15 0.13 0.25

003/07/88 1.07 0.11

03/08/88 1.34 0.16

03/09/88 1.03 0.10 0.20

03/10/88 1.21 0.13 0.19

03/13/88 1.03 0.16

03/14/88 0.88 0.11

03/15/88 0.85 0.13

03/16/88 0.95 0.10

03/17/88 1.01 0.07

03/20/88 0.90 0.06

03/21/88 1.15 0.10 0.19

03/22/88 1.10 0.11

03/23/88 1.35 0.08

03/24/88 1.29 0.10 0.20

03/27/88 0.97 0.07

03/28/88 1.67 0.11

03/29/88 1.22 0.05 0.20

03/30/88 1.10 0.07

03/31/88 1.35 0.06

03/88 Average 1.15 0.10

04/03/88 0.06

04/04/88 0.05

04/05/88 0.04 0.19

04/06/88 0.05 0.21

04/08/88 1.42 0.05

9la

04/10/88 1.11 0.04 0.23

04/11/88 1.27 0.05

04/12/88 1.42 0.11

04/13/88 5.72 0.16 0.19

04/14/88 4.00 0.16

04/17/88 1.31 0.05

04/18/88 1.03 0.03 0.26

04/19/88 1.11 0.04 0.19

04/20/88 1.03 0.05 0.21

04/21/88 1.93 0.07

04/24/88 1.33 0.06

04/25/88 1.15 0.06

04/26/88 0.92 0.08

(04/27/88 0.94 0.08 0.19

04/28/88 0.81 0.06 0.22

04/88 average 1.4] 0.07

05/01/88 0.81 0.05

05/02/88 0.74 0.06 0.19

05/03/88 0.76 0.06

05/04/88 0.85 0.07

05/05/88 0.99 0.05

05/08/88 1.31] 0.07

05/09/88 0.88 0.06

05/10/88 0.99 0.05 0.21

05/11/88 0.97 0.05

05/12/88 1.2] 0.08

05/15/88 0.92 0.05

05/16/88 1.01 0.07 0.22

05/17/88 1.39 0.07

05/18/88 1.31 0.08

05/19/88 1.23 0.07

05/22/88 1.23 0.05

05/23/88/ 1.03 0.05

05/24/88 0.92 0.03

05/25/88 1.07 0.04

92a

05/27/88 1.29 0.06

5/28/88 1.13 0.05

05/30/88 1.35 0.07

05/31/88 1.92 0.08

05/88 average 1.10 0.06

ORDER

Based upon the foregoing FINDINGS OF FACT and pur-

suant to Code of Alabama 1975, § 22-22A-5(10), 22-22-9(c),

22-22-9(g), 22-22-9(1), and 22-22-9(k) (1984 and 1987 Cum.

Supp.) and the National Pollutant Discharge Elimination Sys-

tem administered by the Department and approved by the Ad-

ministrator of the U.S. Environmental Protection Agency

pursuant to the Federal Water Pollution Control Act § 402, 33

U.S.C. 1342, it is hereby ORDERED:

A. That not later than 60 days after receipt of notice of this

Order, the Permittee shall submit to the Department a pollution

abatement plan designed to bring the Permittee’s discharge into

compliance with the terms, limitations and conditions of

NPDES Permit Number AL0055239. Said plan shall be

prepared by a registered professional engineer licensed to prac-

tice in the State of Alabama and shall be prepared in accordance

with ADEM Admin. Code Chapter 6-3.

B. That not later than February 1, 1990 the Permittee shall

have achieved and shall continuously maintain compliance with

the terms, conditions and limitations of this Order.

C. That the failure of the Permittee to comply with any of

the provisions of this Order shall constitute cause for the ter-

mination of NPDES Permit Number AL0055239 and/or the

commencement of legal or other appropriate enforcement action

by the Department against the Permittee for the recovery of civil

penalties, criminal fines or other appropriate relief.

D. That the issuance of this Order does not preclude the

Department from seeking the recovery of civil penalties,

93a

criminal fines, or other appropriate relief against the Permittee

for the violations cited herein.

ORDERED and ISSUED this 19th day of August, 1988

/s/

Leigh Pegues, Director

4abama Department of

Environmental Management

1751 Cong. W.L. Dickinson Drive

Montgomery, Alabama 36130

(205) 271-7855

94a

APPENDIX Z

ALABAMA DEPARTMENT OF

ENVIRONMENTAL MANAGEMENT

February 20,1990

CERTIFIED MAIL (P 070 963 725)

RETURN RECEIPT REQUESTED

K. W. Means

Gulf States Steel

174 South 26th Street

Gadsden, AL 35904

Dear Mr. Means:

Enclosed please find Administrative Order No. 90-074-WP

which requires Gulf States Steel to take certain actions regarding

the discharge of pollutants into waters of the State.

Please be advised that failure to comply with the terms of this

Onder can result in penalties of up to $25,000 pez day for each

violation as well as possible criminal penalties. Pursuant to

Code of Alabama 1975, §22-22A-7(c)(1) this Order may be

appealed by filing a request for hearing before the Environmen-

tal Management Commission within 15 days after receiving

notice of this Order. The request should be addressed to the

Chair of the Environmental Management Commission and

should comply with the requirernents of ADEM Admin. Code

R. 335-2-1-.04. Copies of ADEM Admin. Code, Division 2,

Environmental Management Commission regulations may be

obtained by submitting a request in writing along with a check

or money order for $1.25 for each copy requested. Written

requests should be sent to the attention of the Office of General

Counsel.

95a

If you have any questions, please feel free to contact me at (2U5)

271-7977.

Yours very truly,

/s/

Olivia H. Jenkins

General Counsel

OH3J/daf

Enclosures

CC: Phil Davis, Water Division

Public Information Office

Doug Lankford, U.S. EPA, Region IV

96a

ALABAMA DEPARTMENT OF

ENVIRONMENTAL MANAGEMENT

IN THE MATTER OF

GULF STATES STEEL

GADSDEN, ALABAMA

NPDES PERMIT NUMBER AL0055239

ORDER NO. 90-074-WP

FINDINGS OF FACT

Pursuant to the provisions of the Alabama Environmental

Management Act, Ala. Code §§22-22-1 through 22-22A-16

(1984 and 1989 Cum. Supp.), the Alabama Water Pollution

Control Act, Ala. Code §§22-22-1 through 22-22-14 (1984 and

1989 Cum. Supp.), and the National Pollutant Discharge

Elimination System administered by the Alabama Department

of Environmental Management (hereinafter “the Department’)

and approved by the Administrator of the U.S. Environmental

Protection Agency pursuant to the Federal Water Pollution

Control Act, §402, 33 U.S.C. §1342, the Department makes the

following FINDINGS OF FACT:

1. Gulf States Steel, Inc. (hereinafter “the Permittee’’)

operates an integrated steel] making facility located in Gadsden,

Alabama.

2. On December 4, 1987 the Department issued NPDES

Permit Number AL0055239 to the Permittee authorizing the

discharge of pollutants and other wastes from a point source

designated therein as DSN-001 to Black Creek, a water of the

state, subject to certain terms, limitations and conditions.

3. OnAugust 19, 1988 the Department issued administra-

tive Order No. 88-081-WP to the Permittee citing numerous

violations of NPDES Permit Number Al0055239.

97a

4. An error in Administrative Order No. 88-081-WP

required the Permittee to comply with “the terms, conditions and

limitations of this Order.”

5. The requirement should have been to comply with the

terms, conditions and limitations of NPDES Permit Number

AL0055239.

ORDER

Based upon the foregoing FINDINGS OF FACT and pur-

suant to Ala. Code §§22-22A-5(10), 22-22A-5(18), 22-22-

9(g), 22-22-9(i), and 22-22-9(k) (1984 and 1989 Cum. Supp.),

and the National Pollutant Discharge Elimination System ad-

ministered by the Department and approved by the Ad-

ministrator of the U.S. Environmental Protection Agency

pursuant to the Federal Water Pollution Control Act §402, 33

U.S.C. 1342, it is hereby ORDERED:

A. That paragraph B of Administrative Order No. 88-

081-WP is hereby deleted in its entirety and the following

paragraph is substituted in its place:

That not later than March 1,1990 the Permittee shall have

achieved and shall continuously maintain, until the expiration

of said permit, compliance with NPDES Permit Number

AL0055239.

B. That the failure of the Permittee to comply with any

of the provisions of this Order shall constitute cause for the

termination of NPDES Permit Number AL0055239 and/or the

commencement of legal or other appropriate enforcement action

by the Department against the Permittee for the recovery of civil

penalties, criminal fines or other appropriate relief.

C. That the issuance of this Order does not preclude the

Department or others from seeking the recovery of civil penal-

ties, criminal fines, or other appropriate relief against the Per-

mittee for the violations cited herein.

98a

ORDERED and ISSUED this 21st day of February, 1990.

/s/

Leigh Pegues, Director

Alabama Department of

Environmental Management

1751 Cong. W.L. Dickinson Drive

Montgomery, Alabama 36130

(205) 271-7700

99a

CERTIFICATE OF SERVICE

I, Olivia H. Jenkins, hereby certify that I have served Order

No. 90-074-WP, upon Gulf States Steel by sending the same

postage paid, through the U.S. Mail, as Certified Mail No. PO70

963 725, with instructions to forward and return receipt re-

quested to:

Mr. K. W. Means

Gulf Siates Steel

174 South 26th Street

Gadsden, Al 35904

Done this 21st day of February, 1990.

/s/

Olivia H. Jenkins

100a

APPENDIX AA

IN THE CIRCUIT COURT FOR

ETOWAH COUNTY, ALABAMA

State of Alabama, ex rel

James N. Evans, Attorney General,

Plaintiff,

VS.

Gulf States Steel, Inc. of Alabama

Defendant.

- Civil Action No. W91-242-NWO

~ COMPLAINT

1. This action is brought by the State of Alabama on the

relation of James N. Evans, Attorney General, (‘Plaintiff’) to

enforce the provisions of the provisions of the Alabama Water

Pollution Control Act, and for declaratory judgment.

2. The Attorney General is authorized by Code of

Alabama 1975, §22-22A-5(2), §22-22-9(m), §22-22-9(n), §22-

22-9(0) and §22-22A-5(12) to enforce the provisions of the

Water Pollution Control Act found at Code of Alabama 1975,

§22-22-1 et seq. Additionally, the Attorney General, pursuant

to §22-22A-5(12), is the legal representative of the Alabama

Department of Environmental Management (“ADEM””) in all

legal actions.

3. Defendant, Gulf States Steel, Inc. of Alabama (herein

after Gulf States Steel), is a Delaware corporation qualified

under the laws of this State to do business in Etowah County,

Alabama.

4. Gulf States Steel operates an integrated steel making

facility in Gadsden, Alabama.

Wla

5. Defendant and its predecessor have had a history of

surface water violations for over 6 years. In addition, long

existing underground storage tanks on site and the presence of

benzene in a ditch on the site which leads to a water treatment

facility require an evaluation of Gulf States Steel site for ground

water Contamination.

COUNT I

6. Plaintiff realleges paragraphs | through 4 above.

7. Pursuant to Code of Alabama 1975, §22-22-9(g), the

Alabama Department of Environmental Management

(“ADEM”) issued permit No. AL0055239 to Gulf States Steel

authorizing the discharge of pollutants from outfall serial num-

ber D6WO001 to Black Creek, a water of the State, subject to

certain limitations, terms and conditions.

8. Among the limitations contained in that permit are

daily average and daily maximum limitations for oil and grease

(O & G), ammonia nitrogen (NH3-N), cyanide (CN), lead (Pb),

Zinc (ZN), Phenols (PNEW), total suspended solids (TSS) and

daily minimum limitations for dissolved oxygen (DO) and daily

maximum limitations for pH (PH). Those limitations are as

follows:

TSS DO O&G NH3-N CN

Daily

Minimum — 3.5 mg/l — -- —

Daily

mg/1 9mg/1 — 6.0 mg/l .67 mg/l .02mg/l

Average

Daily

Maximum 22.5mg/l — 15.0mg/l .67 mg/l .02 mg/l

102a

Pb ZN PNEN pH

Daily

Minimum — <— — 6.0 S. U.

Daly

Average 03 mg/l ——.18 mg/l .03 mg/l 9S.U.

Daily

Maximum 03 mg/l —.18 mg/l .065 mg/l NA

9. During the following months, Gulf States Steel com-

mitted the following number of violations by discharging pol-

lutants from the point source into Black Creek in violation of

the discharge limitations set out in NPDES Permit Number

AL00552239:

MONITORING

DAYS OF REPORT

MONTH VIOLATIONS PARAMTER VIOLATIONS

April 1969 22 DO ]

TSS 2

NH3N 21

CN 3

EN 8

May 1989 22 NH3N 22

CN l

ZN 8

June 1989 Zi DO 5

TSS l

NH3N 20

CN 3

ZN )

103a

MONITORING

DAYS OF REPORT

MONTH VIOLATIONS PARAMTER VIOLATIONS

July 1989 14 DO 3

NH3N 6

CN 4

ZN Q

August 1989 22 DO 17

NH3N 3

Fb ]

ZN 14

September 1989 13 NH3N 4

CN 4

ZN 10

October 1989 13 NH3N 3

CN 4

ZN 10

November 1989 13 CN 5

ZN iO

December 1989 =19 TSS 3

NH3N 10

CN 19

ZN 7

PHEN al

January 1990 22 NH3N 9

CN 19

ZN 1]

PHEN 3

February 1990 19 NH3N 6

104a

MONITORING

DAYS OF REPORT

MONTH VIOLATIONS PARAMTER VIOLATIONS

July 1990 14 NH3N 10

CN 3

ZN 3

PHEN 3

August 1990 16 NH3N 18

ZN 3

PHEN 2

September 1990 14 NH3N 6

CN 5

Fb 2

PHEN 2

10. Code of Alabama 1975, §22-22A-5(18)(b), (c)

provides as follows:

In addition to any other powers and functions

which may be conferred upon it by law, the depart-

ment is authorized beginning October 1982 to:

* * * *

(b) Commence a civil action in the circuit

court of the county in which the defendant or any

material defendant resides or does business or in

which the violation occurred to recover a civil

penalty from such person for any violation of any

provision of law identified in subdivision (1) of this

section, any rule, regulation or standard promul-

gated by the department, any provision of any order

or any condition of any permit, license, certification

or variance issued by the department, provided

however, that no such civil action may be com-

menced against a person if an order assessing a

105a

civil penalty for such violation has been issued to

such person under paragraph a, of this subdivision.

Whenever such person is a corporation and the

violation is of a provision of law in chapter 22 of

this title, or any rule, regulation or standard promul-

gated by the department thereunder, or any

provision of any order or any condition of any

permit, license, certification or variance issued by

the department thereunder, the same civil penalties

that may be imposed upon the responsible cor-

porate officers in a civil action. Any person having

an interest which is or may be adversely affected

may intervene as a matter of right in any civil action

commenced under this paragraph. The attorney

general may also commence a civil action under

this paragraph.

(c) Any civil penalty assessed or recovered

under paragraph a. or b. of this subdivision shall not

be less than $100.00 or exceed $25,000.00 for each

violation, provided however, that the total penalty

assessed in an order issued by the department under

paragraph a. of this subdivision shall not exceed

25,000.00. Each day such violation continues shall

constitute a separate violation for purposes of this

subdivision. In determining the amount of any

penalty, consideration shall be given to the serious-

ness of the violation, including any irreparable

harm to the environment and any threat to the health

or safety of the public; the standard of care

manifested by such person; the economic benefit

which delayed compliance may confer upon such

person; the nature, extent and degree of success of

such person’s efforts to minimize or mitigate the

effects of such violation upon the environment;

such person’s history of previous violations; and

106a

the ability of such person to pay such penalty. Civil

penalties may be assessed under this subdivision

for any violation occurring within two years prior

to the date of issuance of any order under paragraph

a. of this subdivision or commencement of such

civil action under paragraph b. of this sub-

division...

Wherefore, Plaintiff requests that the Court:

A. Take jurisdiction of this matter.

B. Declare that Gulf States Steel violated the terms and

conditions of the permit issued by ADEM.

C. Assess a civil penalty against Gulf States Steel and in

favor of the plaintiff pursuant to §22-22A-5(18) (b) and (c) for

each and every day of violation of its NPDES permit.

D. Order defendant to take such corrective action as may

be required to insure that surface and ground water meet neces-

sary state and federal legal and regulatory discharge require-

ments.

E. Grant such other relief as may be appropriate.

F. Tax the costs of this action against the defendants.

RESPECTFULLY SUBMITTED

JAMES H. EVANS

ATTORNEY GENERAL

BY:

/s/

R. CRAIG KNEISEL

Assistant Attorney General

107a

/s/

WILLIAM D. LITTLE

Assistant Attorney General

ADDRESS OF COUNSEL:

OFFICE OF THE ATTORNEY GENERAL

ALABAMA STATE HOUSE

11 SOUTH UNION STREET

MONTGOMERY, ALABAMA 36130

(205) 242-7406

108a

APPENDIX BB

Alabama Department of

avirunbernta! Management

May 30, 1991

CERTIFIED MAIL (P 831 862 203)

RETURN RECEIPT REQUESTED

H. Thomas Wells

Maynard, Cooper, Frierson & Gale

1901 Sixth Avenue North

AmSouth/Harbert Plaza, Suite 2400

Birmingham, AL 35203-2602

Dear Tommy:

Enclosed please find Administrative Order No. 91-115-WP

which requires Gulf States Steel to take certain actions regarding

the discharge of pollutants into waters of the State.

Please be advised that failure to comply with the terms of this

Order can result in penalties of up to $25,000 a day for each

violation as well as possible criminal penalties. Pursuant to Code

of Alabama 1975, § 22-22A-7(c)(1) this Order may be appealed

by filing a request for hearing before the Environmental

Management Commission within 15 days after receiving notice

of this Order. The request should be addressed to the Chair of

the Environmental Management Commission and should com-

ply with the requirements of ADEM Admin. Code R. 335-2-1-

.04. Copies of ADEM Admin. Code, Division 2, Environmental

Management Commission regulations may be obtained by sub-

mitting a request in writing along with a check or money order

for $2.00 for each copy requested. Written requests should be

sent to the attention of the Office of General Counsel.

109a

If you have any questions, please feel free to contact me at (205)

271-7977.

Yours very truly,

/s/

Olivia H. Jenkins

General Counsel

OHJ:df/37

Enclosures

CC: Phil Davis, Water Division

Public Affaus Office

Doug Lankford, U.S. EPA, Region IV

Marilyn Elliott, Permits & Services

110a

ALABAMA DEPARTMENT OF

ENVIRONMENTAL MANAGEMENT

IN THE MATTER OF

GULF STATES STEEL

GADSDEN, ALABAMA

NPDES PERMIT NUMBER AL0055239

ORDER NO. 91-115-WP

FINDINGS

Pursuant to the provisions of the Alabama Environmental

Management Act, Ala. Code (1975), §§ 22-22A-1 through

22-22A-16 (1990 Rple. Vol.), the Alabama Water Pollution

Control Act, Ala. Code (1975), §§ 22-22-1 through 22-22-14

(1990 Rplc. Vol.), and the National Pollutant Discharge

Elimination Systern administered by the Alabama Department

of Environmental Management (hereinafter “the Department’)

and approved by the Administrator of the U.S. Environmental

Protection Agency pursuant to the Federal Water Pollution

Control Act § 402, 33 U.S.C. § 1342, the Department makes the

following FINDINGS OF FACT:

1. Gulf States Steel, Inc. (hereinafter “the Permittee’)

operates an integrated stee] making facility located in Gadsden,

Alabama.

2. On December 4, 1987 the Department issued NPDES

Permit Number ALOO55239 to the Permittee authorizing the

discharge of pollutants and other wastes from a point source

designated therein as DSN-00i to Black Creek, a water of the

state, subject to certain terms, limitations and conditions.

3. Among the terms, limitations and conditions of

NPDES Permit Number AL0055239 are daily maximum and

monthly average discharge limitations for ammonia as nitrogen

llla

(NH3-N), cyanide (CN,T), lead (Pb,T), total zinc (Zn,T) and

phenols (PHEN). Said limitations are as follows:

PARAMETER NH3-N CN,T Pb,T Zn,T PHEN

(mg/1) (mg/1) (mg/l) (mg/I) (mg/1)

Daily Maximum 0.67 0.02 0.03 0.18 0.085

Daily Average 0.67 0.02 0.03 0.18 0.03

4. On February 21, 1990 the Department issued Ad-

ministrative Order Number 90-074-WF to the Permittee citing

violations of said permit discharge limitations amd requiring it

to achieve compliance with the terms, limitations and conditions

of NPDES Permit Number AL0055239 no later than March 1,

1990.

5. On October 24, 1990 the Department issued Ad-

ministrative Order No. 91-001-WP to the Permittee again citing

violations of said permit discharge limitations and requiring it

to achieve compliance with the terms, limitations and conditions

of NPDES Permit Number AL0055239 no later than December

1, 1990.

6. The Permittee has violated the terms, limitations and

conditions of NPDES Permit Number AL0055239 as follows:

DATE NH-3N CN,T Pb,T Zn,T PHEN

(mg/1) (mg/l) (mg/l) (mg/1) (mg/1)

12/2/90 0.74 0.03

12/3/90 0.8 0.07

12/7/90 0.99 0.42

12/9/90 1.51 0.04

12/10/90 1.44 0.03

12/11/90 0.96

12/14/90 1.58 0.06

12/16/90 1.35 0.05

12/17/90 1.72 0.05

12/18/90 0.99

12/19/90 1.07

112a

DATE NH-3N CNT Pb,t Zn,T PHEN

(mg/1) (mg/l) (mg/l) (mg/1) (mg/1)

12/24/90 0.04 0.18

12/26/90 1.05

12/27/90 0.03

12/28/90 1.03 0.08 0.23

12/90 Avg. 0.92 0.03 0.05

1/2/91 0.71 0.03

1/3/91 215 0.04

1/4/91 0.58 0.03

1/6/91 1.62

1/7/91 0.78

1/8/91 3.16

1/9/91 2.21 0.21

1/11/91 0.07

1/13/91 0.76 0.05

1/14/91 0.04

1/15/91 0.06

1/16/91 0.05

1/19/91 0.36

1/20/91 0.03 0.2

1/21/91 0.06

1/22/91 0.03

1/23/91 0.04 0.24

1/28/91 0.11

1/30/91 0.04 0.23

1/91 Avg. 0.83 0.03 0.05

2/5/91 1.48

2/6/91 0.81 0.03

2/8/91 0.05

2/11/91 0.05

2/12/91 0.03

2/13/91 0.06

2/15/91 0.03

2/17/91 0.12

113a

DATE NH-3N CN,T Pb,T Zn,T PHEN

(mg/l) (mg/1) (mg/l) (mg/l) (mg/1)

2/18/91 0.73 0.06 0.1

2/19/91 0.04 1.23

2/20/91 0.28

2/24/91 0.04

2/25/91 0.05

2/26/91 0.69 0.04

2/27/91 0.03

2/91 Avg. 0.03 0.04

7. Qn November 30, 1990 the Permittee notified the

Department that it would not meet the December 1, 1990

compliance date contained in Administrative Order No. 91-00-

WP and requested an extension of the December 1, 1990 com-

pliance date to December 31, 1990. As grounds for said request,

the Permittee stated that equipment designed to modify the pH

adjustment in the second reaction basin had been placed into

-service on October 25, 1990, but before any results could be

obtained, a pump had developed a leak, leading to “virtual

destruction” of the pump. The Permittee informed the Depart-

ment that the pump had been removed and rebuilt but had just

become available for use, and insufficient time remained to

evaluate the efficacy of the modification. The Permittee re-

quested that the delay be considered a force majeure event.

8. On December 5, 1990 the Department responded to the

Permittee and denied the request for an exiension of the com-

pliance date.

9. The steps taken by the Permittee to minimize or

mitigate the effects of these violations upon the environment

have not resulted in compliance with the terms, limitations and

conditions of the permit.

10. The permit limitations are based upon water quality

standards, and violation of said limitations may result in viola-

ll4a

tions of said limitations may result in violation of water quality

standards.

11. The Permittee has the ability to pay a civil penalty.

ORDER

Based upon the foregoing Findings and pursuant to Ala.

Code (1975), §§ 22-22A-5(10), 22-22A-5(18), 22-22-9(g), 22-

22-9(i), and 22-22-9(k) (1990 Rplc. Vol.), and the National

Pollutant Discharge Elimination System administered by the

Department and approved by the Administrator of the U.S.

Environmental Protection Agency pursuant to the Federal Water

Pollution Control Act § 402, 33 U.S.C. § 1342, it is hereby

Ordered:

A. That not later than November 1, 1991, the Permittee

Shall achieve compliance with NPDES Permit Number

AL0055239 and shall continuously maintain said compliance

each and every day thereafter until the expiration date of said

permit.

B. That not later than 30 days after receipt of notice of this

Order the Permittee shall pay to the Department a civil penalty

in the amount of Eighty-one Thousand Dollars ($81,000).

C. That the failure of the Permittee to comply with any of

this Order shall constitute cause for the termination of NPDES

Permit Number AL0055239 and/or the commencement of legal

or other appropriate enforcement action by the Department

against the Permittee for the recovery of civil penalties, criminal

fines or other appropriate relief.

D. That the issuance of this Order does not preclude the

Department from seeking the recovery of criminal fines or other

appropriate relief against the Permittee for the violations cited

herein.

ORDERED and ISSUED this 30th day of May, 1991.

11Sa

/s/

Leigh Pegues, Director

Alabama Department of

Environmental Management

1751 Cong. W. L. Dickinson Dr.

Montgomery, Alabama 36130

(205) 271-7700

ll6a

CERTIFICATE OF SERVICE

I, Olivia H. Jenkins, hereby certify that I have served Order

No. 91-115-WP upon Gulf States Steel by sending the same,

postage paid, through the U.S. Mail, as Certified Mail No. P 831

862 203, with instructions to forward and return receipt re-

quested to:

H. Thomas Wells

Maynard, Cooper, Frierson & Gale

1901 Sixth Avenue North

AmSouth/Harbert Plaza, Suite 2400

Birmingham, AL 35203-2602

Done this 30th day of May, 1991.

/s/

Olivia H. Jenkins

117a

APPENDIX CC

IN THE CIRCUIT COURT OF

ETOWAH COUNTY, ALABAMA

ALABAMA DEPARTMENT OF

ENVIRONMENTAL MANAGEMENT

Plaintiff

Vv.

GSSI, INC. d/b/a

GULF STATES STEEL, INC.

a wholly owned subsidiary

of the Brenlin Corporation

Defendant

CIVIL ACTION NO. CV 88-856-JSS

CONSENT ORDER

The parties to this Consent Order are the Plaintiff, Alabama

Department of Environmental Management (hereinafter “the

Department’’), and the Defendant GSSI, Inc., doing business as

Gulf States Steel, Inc. (hereinafter “Gulf States”), an Alabama

corporation and a wholly owned subsidiary of the Brenlin

Corporation.

This Consent Order shall apply to the claims of the Depart-

ment against Gulf States for any of the acts complained of by

the Department in its Complaint.

Gulf States has denied the allegations presented in the

Department’s Complaint. Nevertheless, Gulf States has agreed

to the terms of this Consent Order in order to satisfy any liability

relating to the acts complained of by the Department in its

Complaint and to avoid the expense, inconvenience, and distrac-

tion of protracted litigation.

118a

The Department has agreed to the terms of this Consent

Order in order to terminate the controversy with Gulf States

regarding the allegations in its Complaint and the Department

has determined that the terms contemplated in this Consent

Order are in the best interests of the citizens of Alabama.

Therefore, the parties having filed a joint motion for Entry

of a Consent Order and good cause appearing, it is hereby

ORDERED, ADJUDGED, AND DECREED:

ARTICLE ONE

That with regard to emissions from Coke Batteries No. 2

and No. 3, Gulf States Steel is ordered to accomplish the

following modifications:

1. Gulf States Steel will replace the fuel gas preheater and

install a filtering system for combustion air in accordance with

the following schedule:

A. Install fuel gas preheater on No. 3 coke battery by

July 30, 1988.

B. Install fuel gas preheater on No. 2 coke battery by

November 30, 1988.

C. Install filtering system for combustion air on No.

3 coke battery by December 31, 1988.

2. Gulf States Steel will make end flue repairs and

through wall repairs on the No. 2 coke battery in accordance

with the following schedule.

A. Complete coke side end flue repairs by December

31, 1988.

B. Complete push side end flue repairs by March 31,

1989.

C. Complete through wall repairs on four ovens by

June 1, 1989.

119a

3. Gulf States Steel will address door emissions in ac-

cordance with the following schedule:

A. (1) Complete design engineering for Saturn doors

by August 31, 1988.

(2) Modify 8 Saturn doors for No. 3 coke battery

by September 30, 1988.

(3) Complete instailation of 8 Saturn doors on

No. 3 battery by October 28, 1988.

(4) Submit to the Department by December 30,

1988 an interim evaluation report on the Saturn doors installed

on the No. 3 coke battery.

B. (1) Mectify 2? adeitional Saturn doors for instal-

iation on No. 2 and No. 3 coke batteries by December 15, 1988.

(2} Complete installation of 1G doors on No. 2

battery and an additional 12 doors on No. 3 battery by December

30, 1988.

C. (1) By April 27, 1989, complete an evaluation of

the Saturn doors and submit to the Department a plan and

schedule to achieve replacement of all doors on No. 2 coke

battery or an alternate method for achieving and maintaining

compliance with applicable method for achieving and maintain-

ing compliance with applicable regulations regarding doors.

This alternative plan and schedule shall have a final compliance

date no later than April 30, 1990.

(2) By April 27, 1989, complete an evaluation of

the Saturn doors and submit to the Department a plan and

schedule to achieve replacement of all doors on No. 3 coke

battery or an alternative method for achieving and maintaining

compliance with applicable regulations regarding doors which

plan and schedule shall have a final compliance date no later

than April 30, 1990.

120a

4. A. Gulf States Steel will achieve compliance with

Section 4.9.4(a) of the Alabama Air Pollution Control Rules and

Regulations relating to pushing on the No. 2 battery by July 1,

1989, and shall continuously maintain c

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