EXECUTIVE SUMMARY – ENFORCEMENT MATTER – CASE NO. 55069 MORGAN BUILDING & SPA MANUFACTURING CORPORATION Page 1 of 3 RN101924793 Docket No. 2017-1326-MLM-E Order Type: Agreed Order Media: MLM: MSW, ISW, IHW, and AIR Small Business: Yes Location(s) Where Violation(s) Occurred: 144 County Road 118, Hallettsville, Lavaca County Type of Operation: portable building manufacturing plant Other Significant Matters: Additional Pending Enforcement Actions: Past-Due Penalties: Past-Due Fees: Other: Interested Third-Parties: None None None None None Texas Register Publication Date: October 5, 2018 Comments Received: None Penalty Information Total Penalty Assessed: $25,996 Total Paid to General Revenue: $726 Total Due to General Revenue: Payment Plan: 35 payments of $722 each $25,270 Compliance History Classifications: Person/CN – Unclassified Site/RN – Unclassified Major Source: Yes (PCW 2) Statutory Limit Adjustment: None Applicable Penalty Policy: April 2014 Investigation Information Complaint Date(s): Complaint Information: June 5, 2017 Complainant alleged a large mound of debris containing fiberglass particles on property, and green storm water running onto complainant’s property. Complainant was concerned about water contaminating their property and water well. Date(s) of Investigation: June 15, 2017 Date(s) of NOV(s): N/A Date(s) of NOE(s): August 1, 2017 EXECUTIVE SUMMARY – ENFORCEMENT MATTER – CASE NO. 55069 MORGAN BUILDING & SPA MANUFACTURING CORPORATION Page 2 of 3 RN101924793 Docket No. 2017-1326-MLM-E Violation Information 1. Caused, suffered, allowed or permitted the unauthorized storage, processing, and/or disposal of MSW, ISW, and IHW at the Plant. Specifically, approximately 38,265 cubic yards of MSW, ISW, and IHW consisting of sheetrock, wood, mattresses, metal, polyvinyl chloride pipe, insulation, empty totes, cardboard, paper, plastics, household trash, spas, fluorescent lightbulbs, and styrofoam were being stored, processed, and/or disposed of at the Plant [30 TEX. ADMIN. CODE §§ 330.15(c), 335.4, and 335.43(a)]. 2. Caused, suffered, allowed, or permitted outdoor burning within the State of Texas. Specifically, approximately 108 cubic yards of waste were burned at the Plant [TEX. HEALTH & SAFETY CODE § 382.085(b) and 30 TEX. ADMIN. CODE § 111.201]. 3. Failed to obtain authorization under a Texas Pollutant Discharge Elimination System (“TPDES”) General Permit (“GP”) to discharge storm water associated with industrial activities [TEX. WATER CODE § 26.121, 30 TEX. ADMIN. CODE § 281.25(a)(4), and 40 C.F.R. § 122.26(c)]. 4. Failed to obtain scrap tire storage site registration for the Plant prior to storing more than 500 used or scrap tires on the ground or 2,000 used or scrap tires in enclosed and lockable containers. Specifically, approximately 600 scrap tires were stored on the ground at the Plant [TEX. HEALTH & SAFETY CODE § 361.112(a) and 30 TEX. ADMIN. CODE §§ 328.56(d)(2) and 328.60(a)]. Corrective Actions/Technical Requirements Corrective Action(s) Completed: None Technical Requirements: 1. Immediately: a. Cease any burning of additional waste at the Plant; b. Cease any unauthorized storage, processing, and/or disposal of additional waste at the Plant; and c. Cease any storage of additional used and/or scrap tires at the Plant until proper authorization is obtained. 2. Within 30 days: a. Register the Plant as a scrap tire storage facility; or b. Reduce the number of scrap tires stored at the Plant to less than 500 on the ground or 2,000 tires in enclosed and lockable containers. 3. Within 45 days, submit written certification to demonstrate compliance with Technical Requirements Nos. 1.a. through 1.c., and 2.a. and 2.b. 4. Within 60 days: a. Develop and implement a Storm Water Pollution Prevention Plan to comply with the requirements of TPDES GP No. TXR050000; and b. Submit a Notice of Intent through the State of Texas Environmental Electronic Reporting System, to obtain coverage under TPDES GP No. TXR050000. 5. Within 75 days, submit written certification to demonstrate compliance with Technical Requirements Nos. 4.a. and 4.b. 6. Within 365 days, remove all unauthorized waste stored and/or disposed of at the Plant. 7. Within 380 days, submit written certification to demonstrate compliance with Technical Requirement No. 6. EXECUTIVE SUMMARY – ENFORCEMENT MATTER – CASE NO. 55069 MORGAN BUILDING & SPA MANUFACTURING CORPORATION Page 3 of 3 RN101924793 Docket No. 2017-1326-MLM-E Litigation Information Date Petition Filed: January 24, 2018 Date Green Card(s) Signed: January 25, 2018 Date Answer(s) Filed: February 13, 2018 SOAH Referral Date: March 21, 2018 Hearing Date(s): Preliminary hearing: May 3, 2018 Evidentiary hearing: September 26, 2018 (scheduled) September 7, 2018 Settlement Date: Contact Information TCEQ Attorneys: Jess Robinson, Litigation Division, (512) 239-3400 Sheldon Wayne, Public Interest Counsel, (512) 239-6363 TCEQ Litigation Division Agenda Coordinator: Janice Hernandez, (512) 239-2575 TCEQ Enforcement Coordinator: TCEQ Regional Contact: Epifanio Villarreal, Enforcement Division, (361) 825-3421 Tim Perdue, Corpus Christi Regional Office, (361) 825-3100 Respondent Contact: Guy Morgan, President, MORGAN BUILDING & SPA MANUFACTURING CORPORATION, P.O. Box 660280, Dallas, Texas 75266 Respondent's Attorney: Hicks Morgan, 12700 Hillcrest Road, Suite 291, Dallas, Texas 75230 THIS PAGE INTENTIONALLY LEFT BLANK PCW 1 OF 2 Penalty Calculation Worksheet (PCW) Policy Revision 4 (April 2014) DATES Assigned PCW PCW Revision March 26, 2014 7-Aug-2017 4-Dec-2017 Screening 9-Aug-2017 EPA Due RESPONDENT/FACILITY INFORMATION Respondent MORGAN BUILDING & SPA MANUFACTURING CORPORATION Reg. Ent. Ref. No. RN101924793 Facility/Site Region 14-Corpus Christi Major/Minor Source Minor CASE INFORMATION Enf./Case ID No. 55069 Docket No. 2017-1326-MLM-E Media Program(s) Industrial and Hazardous Waste Municipal Solid Waste; Air; Water Quality; Multi-Media and Waste Tires Admin. Penalty $ Limit Minimum $0 Maximum No. of Violations 3 Order Type 1660 Government/Non-Profit No Keith Frank Enf. Coordinator EC's Team Enforcement Team 6 $25,000 Penalty Calculation Section TOTAL BASE PENALTY (Sum of violation base penalties) Subtotal 1 $11,250 Subtotals 2, 3, & 7 $0 Subtotal 4 $0 Subtotal 5 $0 Subtotal 6 $5,625 Final Subtotal $16,875 Adjustment $1,621 Final Penalty Amount $18,496 Final Assessed Penalty $18,496 Adjustment $0 ADJUSTMENTS (+/-) TO SUBTOTAL 1 Subtotals 2-7 are obtained by multiplying the Total Base Penalty (Subtotal 1) by the indicated percentage. Compliance History 0.0% No adjustment for compliance history. Notes Culpability Adjustment No 0.0% Enhancement The Respondent does not meet the culpability criteria. Notes Good Faith Effort to Comply Total Adjustments Economic Benefit 50.0% Enhancement* Total EB Amounts Estimated Cost of Compliance $28,151 $601,217 *Capped at the Total EB $ Amount SUM OF SUBTOTALS 1-7 OTHER FACTORS AS JUSTICE MAY REQUIRE 9.6% Reduces or enhances the Final Subtotal by the indicated percentage. Notes Recommended enhancement to capture the avoided costs of compliance associated with Violation No. 2. STATUTORY LIMIT ADJUSTMENT DEFERRAL 0.0% Reduction Reduces the Final Assessed Penalty by the indicated percentage. Notes PAYABLE PENALTY Deferral not offered for non-expedited settlement. $18,496 PCW 1 OF 2 Screening Date Respondent Case ID No. Reg. Ent. Reference No. Media [Statute] Enf. Coordinator 9-Aug-2017 Docket No. 2017-1326-MLM-E PCW MORGAN BUILDING & SPA MANUFACTURING CORPORATION Policy Revision 4 (April 2014) 55069 RN101924793 Industrial and Hazardous Waste Keith Frank PCW Revision March 26, 2014 Compliance History Worksheet >> Compliance History Site Enhancement (Subtotal 2) Component Number of... Number Adjust. 0 0% 0 0% 0 0% Any adjudicated final enforcement orders, agreed final enforcement orders without a denial of liability, or default orders of this state or the federal government, or any final prohibitory emergency orders issued by the commission 0 0% Any non-adjudicated final court judgments or consent decrees containing a denial of liability of this state or the federal government (number of judgments or consent decrees meeting criteria ) 0 0% Any adjudicated final court judgments and default judgments, or non-adjudicated final court judgments or consent decrees without a denial of liability, of this state or the federal government 0 0% Any criminal convictions of this state or the federal government (number of counts ) 0 0% Chronic excessive emissions events (number of events ) 0 0% Letters notifying the executive director of an intended audit conducted under the Texas Environmental, Health, and Safety Audit Privilege Act, 74th Legislature, 1995 (number of audits for which notices were submitted) 0 0% Disclosures of violations under the Texas Environmental, Health, and Safety Audit Privilege Act, 74th Legislature, 1995 (number of audits for which violations were disclosed ) 0 0% Environmental management systems in place for one year or more No 0% Voluntary on-site compliance assessments conducted by the executive director under a special assistance program No 0% Participation in a voluntary pollution reduction program No 0% Early compliance with, or offer of a product that meets future state or federal government environmental requirements No 0% Written notices of violation ("NOVs") with same or similar violations as those in the current enforcement action (number of NOVs meeting criteria ) NOVs Other written NOVs Any agreed final enforcement orders containing a denial of liability (number of orders meeting criteria ) Orders Judgments and Consent Decrees Convictions Emissions Audits Other >> Adjustment Percentage (Subtotal 3) 0% Adjustment Percentage (Subtotal 7) 0% Compliance History Person Classification (Subtotal 7) Unclassified >> 0% Repeat Violator (Subtotal 3) No >> Adjustment Percentage (Subtotal 2) Compliance History Summary Compliance History Notes No adjustment for compliance history. Total Compliance History Adjustment Percentage (Subtotals 2, 3, & 7) 0% >> Final Compliance History Adjustment Final Adjustment Percentage *capped at 100% 0% PCW 1 OF 2 Screening Date Respondent Case ID No. Reg. Ent. Reference No. Media [Statute] Enf. Coordinator Docket No. 2017-1326-MLM-E 9-Aug-2017 MORGAN BUILDING & SPA MANUFACTURING CORPORATION PCW Policy Revision 4 (April 2014) 55069 RN101924793 Industrial and Hazardous Waste Keith Frank 1 Violation Number Rule Cite(s) PCW Revision March 26, 2014 30 Tex. Admin. Code §§ 330.15(c), 335.4, and 335.43(a) Caused, suffered, allowed, or permitted the unauthorized storage, processing, and/or disposal of municipal solid waste (“MSW”), industrial solid waste (“ISW”), and industrial hazardous waste (“IHW”) at the Plant. Specifically, approximately Violation Description 38,265 cubic yards of MSW, ISW, and IHW consisting of sheetrock, wood, mattresses, metal, polyvinyl chloride pipe, insulation, empty totes, cardboard, paper, plastics, household trash, spas, fluorescent lightbulbs, and styrofoam were being stored, processed, and/or disposed of at the Plant. Base Penalty $25,000 >> Environmental, Property and Human Health Matrix Release Actual Potential OR Harm Moderate x Major Minor Percent 15.0% Percent 0.0% >>Programmatic Matrix Falsification Matrix Notes Major Moderate Minor Human health or the environment has been exposed to significant amounts of pollutants which do not exceed levels that are protective of human health or environmental receptors as a result of the violation. Adjustment $21,250 $3,750 Violation Events Number of Violation Events 2 daily weekly monthly quarterly semiannual annual single event 55 Number of violation days x Violation Base Penalty $7,500 Two monthly events are recommended based on documentation of the violation from the June 15, 2017 investigation to the August 9, 2017 screening date. Good Faith Efforts to Comply Reduction $0 Violation Subtotal $7,500 0.0% Before NOE/NOV NOE/NOV to EDPRP/Settlement Offer Extraordinary Ordinary N/A Notes x The Respondent does not meet the good faith criteria for this violation. Economic Benefit (EB) for this violation Estimated EB Amount Statutory Limit Test $26,309 Violation Final Penalty Total $12,331 This violation Final Assessed Penalty (adjusted for limits) $12,331 PCW 1 OF 2 Economic Benefit Worksheet Respondent Case ID No. Reg. Ent. Reference No. Media Violation No. MORGAN BUILDING & SPA MANUFACTURING CORPORATION 55069 RN101924793 Industrial and Hazardous Waste 1 Item Cost Date Required Final Date Percent Interest Years of Depreciation 15 EB Amount Yrs Interest Saved 5.0 Onetime Costs 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.88 0.00 0.00 $0 $0 $0 $0 $0 $0 $0 $26,309 $0 $0 $0 $0 $0 $0 n/a n/a n/a n/a n/a n/a Item Description Delayed Costs Equipment Buildings Other (as needed) Engineering/Construction Land Record Keeping System Training/Sampling Remediation/Disposal Permit Costs Other (as needed) Notes for DELAYED costs Avoided Costs Disposal Personnel Inspection/Reporting/Sampling Supplies/Equipment Financial Assurance [2] ONE-TIME avoided costs [3] Other (as needed) $594,596 15-Jun-2017 4-May-2018 $0 $0 $0 $0 $0 $0 $0 $26,309 $0 $0 Estimated cost to remove and dispose of approximately 38,265 cubic yards of MSW, ISW, and IHW at an authorized facility. Date Required is the investigation date. Final Date is the estimated date of compliance. ANNUALIZE [1] avoided costs before entering item (except for one-time avoided costs) 0.00 $0 $0 $0 0.00 $0 $0 $0 0.00 $0 $0 $0 0.00 $0 $0 $0 0.00 $0 $0 $0 0.00 $0 $0 $0 0.00 $0 $0 $0 Notes for AVOIDED costs Approx. Cost of Compliance $594,596 TOTAL $26,309 PCW 1 OF 2 Screening Date Respondent Case ID No. Reg. Ent. Reference No. Media [Statute] Enf. Coordinator Docket No. 2017-1326-MLM-E 9-Aug-2017 MORGAN BUILDING & SPA MANUFACTURING CORPORATION PCW Policy Revision 4 (April 2014) 55069 PCW Revision March 26, 2014 RN101924793 Industrial and Hazardous Waste Keith Frank 2 Violation Number Rule Cite(s) 30 Tex. Admin. Code § 111.201 and Tex. Health & Safety Code § 382.085(b) Violation Description Caused, suffered, allowed, or permitted outdoor burning within the State of Texas. Specifically, approximately 108 cubic yards of waste were burned at the Plant. Base Penalty $25,000 >> Environmental, Property and Human Health Matrix Release Actual Potential OR Harm Moderate Major Minor x Percent 5.0% Percent 0.0% >>Programmatic Matrix Falsification Matrix Notes Major Moderate Minor Human health or the environment has been exposed to insignificant amounts of pollutants which do not exceed levels that are protective of human health or environmental receptors as a result of the violation. Adjustment $23,750 $1,250 Violation Events Number of Violation Events 1 daily weekly monthly quarterly semiannual annual single event 1 Number of violation days Violation Base Penalty $1,250 Reduction $0 Violation Subtotal $1,250 x One single event is recommended. Good Faith Efforts to Comply 0.0% Before NOE/NOV NOE/NOV to EDPRP/Settlement Offer Extraordinary Ordinary N/A Notes x The Respondent does not meet the good faith criteria for this violation. Economic Benefit (EB) for this violation Estimated EB Amount Statutory Limit Test $1,621 Violation Final Penalty Total $2,055 This violation Final Assessed Penalty (adjusted for limits) $2,055 PCW 1 OF 2 Economic Benefit Worksheet Respondent Case ID No. Reg. Ent. Reference No. Media Violation No. MORGAN BUILDING & SPA MANUFACTURING CORPORATION 55069 RN101924793 Industrial and Hazardous Waste 2 Item Cost Date Required Final Date Percent Interest Years of Depreciation 15 EB Amount Yrs Interest Saved 5.0 Onetime Costs 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 n/a n/a n/a n/a n/a n/a Item Description Delayed Costs Equipment Buildings Other (as needed) Engineering/Construction Land Record Keeping System Training/Sampling Remediation/Disposal Permit Costs Other (as needed) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Notes for DELAYED costs Avoided Costs Disposal Personnel Inspection/Reporting/Sampling Supplies/Equipment Financial Assurance [2] ONE-TIME avoided costs [3] Other (as needed) Notes for AVOIDED costs Approx. Cost of Compliance ANNUALIZE [1] avoided costs before entering item (except for one-time avoided costs) 0.00 $0 $0 $0 0.00 $0 $0 $0 0.00 $0 $0 $0 0.00 $0 $0 $0 0.00 $0 $0 $0 $1,621 14-Jun-2017 15-Jun-2017 0.00 $0 $1,621 $1,621 0.00 $0 $0 $0 Estimated avoided cost to have properly disposed of approximately 108 cubic yards waste at an authorized facility rather than burning. Date Required is one day prior to the investigation date. Final Date is the investigation date. $1,621 TOTAL $1,621 PCW 1 OF 2 Screening Date Respondent Case ID No. Reg. Ent. Reference No. Media [Statute] Enf. Coordinator Docket No. 2017-1326-MLM-E 9-Aug-2017 MORGAN BUILDING & SPA MANUFACTURING CORPORATION PCW Policy Revision 4 (April 2014) 55069 PCW Revision March 26, 2014 RN101924793 Industrial and Hazardous Waste Keith Frank 3 Violation Number Rule Cite(s) 30 Tex. Admin. Code § 281.25(a)(4) and Tex. Water Code § 26.121 and 40 Code of Federal Regulations § 122.26(c) Failed to obtain authorization under a Texas Pollutant Discharge Elimination System Violation Description ("TPDES") General Permit ("GP") to discharge stormwater associated with industrial activities. Base Penalty $25,000 >> Environmental, Property and Human Health Matrix Release Actual Potential OR Harm Moderate Major Minor Percent 0.0% Percent 5.0% >>Programmatic Matrix Falsification Major x Matrix Notes Moderate Minor 100% of the rule requirement was not met. Adjustment $23,750 $1,250 Violation Events Number of Violation Events 2 daily weekly monthly quarterly semiannual annual single event 55 Number of violation days x Violation Base Penalty $2,500 Two monthly events are recommended based on documentation of the violation from the June 15, 2017 investigation to the August 9, 2017 screening date. Good Faith Efforts to Comply Reduction $0 Violation Subtotal $2,500 0.0% Before NOE/NOV NOE/NOV to EDPRP/Settlement Offer Extraordinary Ordinary N/A Notes x The Respondent does not meet the good faith criteria for this violation. Economic Benefit (EB) for this violation Estimated EB Amount Statutory Limit Test $221 Violation Final Penalty Total $4,110 This violation Final Assessed Penalty (adjusted for limits) $4,110 PCW 1 OF 2 Economic Benefit Worksheet Respondent Case ID No. Reg. Ent. Reference No. Media Violation No. MORGAN BUILDING & SPA MANUFACTURING CORPORATION 55069 RN101924793 Industrial and Hazardous Waste 3 Item Cost Date Required Final Date Percent Interest Years of Depreciation 15 EB Amount Yrs Interest Saved 5.0 Onetime Costs 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.88 0.00 $0 $0 $0 $0 $0 $0 $0 $0 $221 $0 $0 $0 $0 $0 n/a n/a n/a n/a n/a n/a Item Description Delayed Costs Equipment Buildings Other (as needed) Engineering/Construction Land Record Keeping System Training/Sampling Remediation/Disposal Permit Costs Other (as needed) Notes for DELAYED costs Avoided Costs Disposal Personnel Inspection/Reporting/Sampling Supplies/Equipment Financial Assurance [2] ONE-TIME avoided costs [3] Other (as needed) $5,000 15-Jun-2017 4-May-2018 $0 $0 $0 $0 $0 $0 $0 $0 $221 $0 Estimated cost to develop and implement a stormwater pollution prevention plan; submit a Notice of Intent and the associated fees; and to obtain authorization to discharge stormwater under a TPDES GP No. TXR050000. Date Required is the investigation date. Final Date is the estimated date of compliance. ANNUALIZE [1] avoided costs before entering item (except for one-time avoided costs) 0.00 $0 $0 $0 0.00 $0 $0 $0 0.00 $0 $0 $0 0.00 $0 $0 $0 0.00 $0 $0 $0 0.00 $0 $0 $0 0.00 $0 $0 $0 Notes for AVOIDED costs Approx. Cost of Compliance $5,000 TOTAL $221 PCW 2 OF 2 Penalty Calculation Worksheet (PCW) Policy Revision 4 (April 2014) DATES Assigned PCW PCW Revision March 26, 2014 7-Aug-2017 4-Dec-2017 Screening 9-Aug-2017 EPA Due RESPONDENT/FACILITY INFORMATION Respondent MORGAN BUILDING & SPA MANUFACTURING CORPORATION Reg. Ent. Ref. No. RN101924793 Facility/Site Region 14-Corpus Christi Major/Minor Source Major CASE INFORMATION Enf./Case ID No. 55069 Docket No. 2017-1326-MLM-E Media Program(s) Waste Tires Industrial and Hazardous Waste; Municipal Multi-Media Solid Waste; Air; and Water Quality Admin. Penalty $ Limit Minimum $0 Maximum No. of Violations 1 Order Type 1660 Government/Non-Profit No Keith Frank Enf. Coordinator EC's Team Enforcement Team 6 $25,000 Penalty Calculation Section TOTAL BASE PENALTY (Sum of violation base penalties) Subtotal 1 $7,500 Subtotals 2, 3, & 7 $0 Subtotal 4 $0 Subtotal 5 $0 Subtotal 6 $0 Final Subtotal $7,500 Adjustment $0 Final Penalty Amount $7,500 Final Assessed Penalty $7,500 Adjustment $0 ADJUSTMENTS (+/-) TO SUBTOTAL 1 Subtotals 2-7 are obtained by multiplying the Total Base Penalty (Subtotal 1) by the indicated percentage. Compliance History 0.0% No adjustment for compliance history. Notes Culpability Adjustment No Notes 0.0% Enhancement The Respondent does not meet the culpability criteria. Good Faith Effort to Comply Total Adjustments Economic Benefit 0.0% Enhancement* Total EB Amounts Estimated Cost of Compliance $442 $10,000 *Capped at the Total EB $ Amount SUM OF SUBTOTALS 1-7 OTHER FACTORS AS JUSTICE MAY REQUIRE 0.0% Reduces or enhances the Final Subtotal by the indicated percentage. Notes STATUTORY LIMIT ADJUSTMENT DEFERRAL 0.0% Reduction Reduces the Final Assessed Penalty by the indicated percentage. Notes PAYABLE PENALTY Deferral not offered for non-expedited settlement. $7,500 PCW 2 OF 2 Screening Date Respondent Case ID No. Reg. Ent. Reference No. Media [Statute] Enf. Coordinator Docket No. 2017-1326-MLM-E 9-Aug-2017 PCW MORGAN BUILDING & SPA MANUFACTURING CORPORATION Policy Revision 4 (April 2014) 55069 RN101924793 Waste Tires Keith Frank PCW Revision March 26, 2014 Compliance History Worksheet >> Compliance History Site Enhancement (Subtotal 2) Component Number of... Number Adjust. 0 0% 0 0% 0 0% Any adjudicated final enforcement orders, agreed final enforcement orders without a denial of liability, or default orders of this state or the federal government, or any final prohibitory emergency orders issued by the commission 0 0% Any non-adjudicated final court judgments or consent decrees containing a denial of liability of this state or the federal government (number of judgments or consent decrees meeting criteria ) 0 0% Any adjudicated final court judgments and default judgments, or non-adjudicated final court judgments or consent decrees without a denial of liability, of this state or the federal government 0 0% Any criminal convictions of this state or the federal government (number of counts ) 0 0% Chronic excessive emissions events (number of events ) 0 0% Letters notifying the executive director of an intended audit conducted under the Texas Environmental, Health, and Safety Audit Privilege Act, 74th Legislature, 1995 (number of audits for which notices were submitted) 0 0% Disclosures of violations under the Texas Environmental, Health, and Safety Audit Privilege Act, 74th Legislature, 1995 (number of audits for which violations were disclosed ) 0 0% Environmental management systems in place for one year or more No 0% Voluntary on-site compliance assessments conducted by the executive director under a special assistance program No 0% Participation in a voluntary pollution reduction program No 0% Early compliance with, or offer of a product that meets future state or federal government environmental requirements No 0% Written notices of violation ("NOVs") with same or similar violations as those in the current enforcement action (number of NOVs meeting criteria ) NOVs Other written NOVs Any agreed final enforcement orders containing a denial of liability (number of orders meeting criteria ) Orders Judgments and Consent Decrees Convictions Emissions Audits Other >> Adjustment Percentage (Subtotal 3) 0% Adjustment Percentage (Subtotal 7) 0% Compliance History Person Classification (Subtotal 7) Unclassified >> 0% Repeat Violator (Subtotal 3) No >> Adjustment Percentage (Subtotal 2) Compliance History Summary Compliance History Notes No adjustment for compliance history. Total Compliance History Adjustment Percentage (Subtotals 2, 3, & 7) 0% >> Final Compliance History Adjustment Final Adjustment Percentage *capped at 100% 0% PCW 2 OF 2 Screening Date Respondent Case ID No. Reg. Ent. Reference No. Media [Statute] Enf. Coordinator Docket No. 2017-1326-MLM-E 9-Aug-2017 MORGAN BUILDING & SPA MANUFACTURING CORPORATION PCW Policy Revision 4 (April 2014) 55069 RN101924793 Waste Tires Keith Frank 1 Violation Number Rule Cite(s) Violation Description PCW Revision March 26, 2014 30 Tex. Admin. Code §§ 328.56(d)(2) and 328.60(a) and Tex. Health & Safety Code § 361.112(a) Failed to obtain a scrap tire storage site registration for the Plant prior to storing more than 500 used or scrap tires on the ground or 2,000 used or scrap tires in enclosed and lockable containers. Specifically, approximately 600 scrap tires were stored on the ground at the Plant. Base Penalty $25,000 >> Environmental, Property and Human Health Matrix Release Actual Potential OR Harm Moderate Major Minor Percent 0.0% Percent 15.0% >>Programmatic Matrix Falsification Major x Matrix Notes Moderate Minor 100% of the rule requirement was not met. Adjustment $21,250 $3,750 Violation Events Number of Violation Events 2 daily weekly monthly quarterly semiannual annual single event 55 Number of violation days x Violation Base Penalty $7,500 Two monthly events are recommended based on documentation of the violation from the June 15, 2017 investigation to the August 9, 2017 screening date. Good Faith Efforts to Comply Reduction $0 Violation Subtotal $7,500 0.0% Before NOE/NOV NOE/NOV to EDPRP/Settlement Offer Extraordinary Ordinary N/A Notes x The Respondent does not meet the good faith criteria for this violation. Economic Benefit (EB) for this violation Estimated EB Amount Statutory Limit Test $442 Violation Final Penalty Total $7,500 This violation Final Assessed Penalty (adjusted for limits) $7,500 PCW 2 OF 2 Economic Benefit Worksheet Respondent Case ID No. Reg. Ent. Reference No. Media Violation No. MORGAN BUILDING & SPA MANUFACTURING CORPORATION 55069 RN101924793 Waste Tires 1 Item Cost Date Required Final Date Percent Interest Years of Depreciation 15 EB Amount Yrs Interest Saved 5.0 Onetime Costs 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.88 0.00 $0 $0 $0 $0 $0 $0 $0 $0 $442 $0 $0 $0 $0 $0 n/a n/a n/a n/a n/a n/a Item Description Delayed Costs Equipment Buildings Other (as needed) Engineering/Construction Land Record Keeping System Training/Sampling Remediation/Disposal Permit Costs Other (as needed) Notes for DELAYED costs Avoided Costs Disposal Personnel Inspection/Reporting/Sampling Supplies/Equipment Financial Assurance [2] ONE-TIME avoided costs [3] Other (as needed) $10,000 15-Jun-2017 4-May-2018 $0 $0 $0 $0 $0 $0 $0 $0 $442 $0 Estimated cost to obtain a scrap tire storage site registration for the Plant. Date Required is the investigation date. Final Date is the estimated date of compliance. ANNUALIZE [1] avoided costs before entering item (except for one-time avoided costs) 0.00 $0 $0 $0 0.00 $0 $0 $0 0.00 $0 $0 $0 0.00 $0 $0 $0 0.00 $0 $0 $0 0.00 $0 $0 $0 0.00 $0 $0 $0 Notes for AVOIDED costs Approx. Cost of Compliance $10,000 TOTAL $442 The TCEQ is committed to accessibility. To request a more accessible version of this report, please contact the TCEQ Help Desk at (512) 239-4357. Compliance History Report Compliance History Report for CN603300609, RN101924793, Rating Year 2016 which includes Compliance History (CH) components from September 1, 2011, through August 31, 2016. Customer, Respondent, CN603300609, MORGAN BUILDING & SPA Classification: UNCLASSIFIED Rating: ----or Owner/Operator: MANUFACTURING CORPORATION Regulated Entity: RN101924793, Hallettsville Plant Classification: UNCLASSIFIED Rating: ----- Complexity Points: 5 Repeat Violator: NO CH Group: 14 - Other Location: 144 COUNTY ROAD 118 TCEQ Region: REGION 14 - CORPUS CHRISTI HALLETTSVILLE, TX 77964-4980, LAVACA COUNTY ID Number(s): AIR NEW SOURCE PERMITS PERMIT 22401 AIR NEW SOURCE PERMITS ACCOUNT NUMBER LE0061J AIR NEW SOURCE PERMITS REGISTRATION 25733 POLLUTION PREVENTION PLANNING ID NUMBER P07166 Compliance History Period: September 01, 2011 to August 31, 2016 Date Compliance History Report Prepared: Rating Date: 09/01/2016 August 09, 2017 Agency Decision Requiring Compliance History: Component Period Selected: Rating Year: 2016 Enforcement August 09, 2012 to August 09, 2017 TCEQ Staff Member to Contact for Additional Information Regarding This Compliance History. Name: Keith Frank Phone: (512) 239-1203 Site and Owner/Operator History: 1) Has the site been in existence and/or operation for the full five year compliance period? 2) Has there been a (known) change in ownership/operator of the site during the compliance period? YES NO Components (Multimedia) for the Site Are Listed in Sections A - J A. Final Orders, court judgments, and consent decrees: N/A B. Criminal convictions: N/A C. Chronic excessive emissions events: N/A D. The approval dates of investigations (CCEDS Inv. Track. No.): N/A E. Written notices of violations (NOV) (CCEDS Inv. Track. No.): A notice of violation represents a written allegation of a violation of a specific regulatory requirement from the commission to a regulated entity. A notice of violation is not a final enforcement action, nor proof that a violation has actually occurred. N/A F. Environmental audits: N/A G. Type of environmental management systems (EMSs): N/A H. Voluntary on-site compliance assessment dates: N/A I. Participation in a voluntary pollution reduction program: J. Early compliance: N/A N/A Sites Outside of Texas: N/A THIS PAGE INTENTIONALLY LEFT BLANK TEXAS COMMISSION ON ENVIRONMENTAL QUALITY IN THE MATTER OF AN ENFORCEMENT ACTION CONCERNING MORGAN BUILDING & SPA MANUFACTURING CORPORATION; RN101924793 § § § § § § BEFORE THE TEXAS COMMISSION ON ENVIRONMENTAL QUALITY AGREED ORDER DOCKET NO. 2017-1326-MLM-E I. JURISDICTION AND STIPULATIONS On , the Texas Commission on Environmental Quality (“Commission” or “TCEQ”) considered this agreement of the parties, resolving an enforcement action regarding MORGAN BUILDING & SPA MANUFACTURING CORPORATION (“Respondent”) under the authority of TEX. WATER CODE chs. 7 and 26, and TEX. HEALTH & SAFETY CODE chs. 361 and 382. The Executive Director of the TCEQ, represented by the Litigation Division, and Respondent, represented by Hicks Morgan, together stipulate that: 1. Respondent owns and operates a portable building manufacturing plant located at 144 County Road 118 in Hallettsville, Lavaca County, Texas (the “Plant”). The Plant contains and/or involves the management of industrial solid waste (“ISW”), hazardous waste, and municipal solid waste (“MSW”), including scrap tires, as defined in TEX. HEALTH & SAFETY CODE ch. 361. The Plant consists of one or more sources, as defined in TEX. HEALTH & SAFETY CODE § 382.003(12). The Plant is near or adjacent to water in the state, as defined in TEX. WATER CODE § 26.001(5). 2. The Executive Director and Respondent agree the TCEQ has jurisdiction to enter this Order pursuant to TEX. WATER CODE §§ 7.002, 7.051, and 7.073, and that Respondent is subject to the TCEQ’s jurisdiction. The TCEQ has jurisdiction in this matter pursuant to TEX. WATER CODE § 5.013 because it alleges violations of TEX. WATER CODE ch. 26, TEX. HEALTH & SAFETY CODE chs. 361 and 382, and the rules of the TCEQ. 3. The occurrence of any violation is in dispute and the entry of this Order shall not constitute an admission by Respondent of any violation alleged in Section II (“Allegations”), nor of any statute or rule. 4. An administrative penalty in the amount of twenty-five thousand nine hundred ninety-six dollars ($25,996.00) is assessed by the Commission in settlement of the violations alleged in Section II. Respondent paid seven hundred twenty-six dollars ($726.00) of the penalty. The remaining amount of twenty-five thousand two hundred seventy dollars ($25,270.00) shall be paid in thirty-five (35) monthly payments of seven hundred twenty-two dollars ($722.00) each. The first monthly payment shall be paid within 30 days after the effective date of this Order. The subsequent payments shall each be paid not later than MORGAN BUILDING & SPA MANUFACTURING CORPORATION Docket No. 2017-1326-MLM-E Page 2 30 days following the due date of the previous payment until the penalty is paid in full. If Respondent fails to timely and satisfactorily comply with the payment requirements of this Order, including the payment schedule, the Executive Director may, at his option, accelerate the maturity of the remaining installments, in which event the unpaid balance shall become immediately due and payable without demand or notice. In addition, Respondent’s failure to meet the payment schedule of this Order and/or the acceleration of any remaining balance constitutes the failure by Respondent to timely and satisfactorily comply with all the terms of this Order. 5. The Executive Director and Respondent agree on a settlement of the matters addressed in this Order, subject to final approval in accordance with 30 TEX. ADMIN. CODE § 70.10(a). Any notice and procedures which might otherwise be authorized or required in this action are waived in the interest of a more timely resolution of the matter. 6. The Executive Director may, without further notice or hearing, refer this matter to the Office of the Attorney General of the State of Texas (“OAG”) for further enforcement proceedings if the Executive Director determines Respondent has not complied with one or more of the terms or conditions contained in this Order. 7. This Order represents the complete and fully-integrated agreement of the parties. The provisions of this Order are deemed severable, and, if a court of competent jurisdiction or other appropriate authority deems any provision of this Order unenforceable, the remaining provisions shall be valid and enforceable. 8. This Order shall terminate five years from its effective date or upon full compliance with all the terms and conditions set forth in this Order, whichever is later. II. ALLEGATIONS 1. During an investigation conducted on and around June 15, 2017, an investigator documented that Respondent: a. Caused, suffered, allowed, or permitted the unauthorized storage, processing, and/or disposal of MSW, ISW, and industrial hazardous waste at the Plant, in violation of 30 TEX. ADMIN. CODE §§ 330.15(c), 335.4, and 335.43(a). Specifically, approximately 38,265 cubic yards of MSW, ISW, and IHW consisting of sheetrock, wood, mattresses, metal, polyvinyl chloride pipe, insulation, empty totes, cardboard, paper, plastics, household trash, spas, fluorescent lightbulbs, and styrofoam were being stored, processed, and/or disposed of at the Plant; b. Caused, suffered, allowed, or permitted outdoor burning within the State of Texas, in violation of TEX. HEALTH & SAFETY CODE § 382.085(b) and 30 TEX. ADMIN. CODE § 111.201. Specifically, approximately 108 cubic yards of waste were burned at the Plant; c. Failed to obtain authorization under a Texas Pollutant Discharge Elimination System (“TPDES”) General Permit (“GP”) to discharge storm water associated with industrial activities, in violation of TEX. WATER CODE § 26.121, 30 TEX. ADMIN. CODE § 281.25(a)(4), and 40 C.F.R. § 122.26(c); and MORGAN BUILDING & SPA MANUFACTURING CORPORATION Docket No. 2017-1326-MLM-E Page 3 d. Failed to obtain scrap tire storage site registration for the Plant prior to storing more than 500 used or scrap tires on the ground or 2,000 used or scrap tires in enclosed and lockable containers, in violation of TEX. HEALTH & SAFETY CODE § 361.112(a) and 30 TEX. ADMIN. CODE §§ 328.56(d)(2) and 328.60(a). Specifically, approximately 600 scrap tires were stored on the ground at the Plant. III. DENIALS Respondent generally denies each Allegation in Section II. IV. ORDERING PROVISIONS NOW, THEREFORE, THE TEXAS COMMISSION ON ENVIRONMENTAL QUALITY ORDERS that: 1. Respondent is assessed an administrative penalty as set forth in Section I, Paragraph 4. The payment of this penalty and Respondent’s compliance with all the requirements set forth in this Order resolve only the Allegations in Section II. The Commission shall not be constrained in any manner from requiring corrective actions or penalties for violations not raised here. Penalty payments shall be made payable to the TCEQ and shall be sent with the notation “Re: MORGAN BUILDING & SPA MANUFACTURING CORPORATION, Docket No. 2017-1326-MLM-E” to: Financial Administration Division Revenue Operations Section Texas Commission on Environmental Quality Attention: Cashier’s Office, MC 214 P.O. Box 13088 Austin, Texas 78711-3088 2. Respondent shall undertake the following technical requirements: a. b. c. Immediately upon the effective date of this Order: i. Cease any burning of additional waste at the Plant; ii. Cease any unauthorized storage, processing, and/or disposal of additional waste at the Plant; and iii. Cease any storage of additional used and/or scrap tires at the Plant until proper authorization is obtained. Within 30 days after the effective date of this Order, either: i. Register the Plant as a scrap tire storage facility, in accordance with 30 TEX. ADMIN. CODE § 328.60; or ii. Reduce the number of scrap tires stored at the Plant to less than 500 on the ground or 2,000 tires in enclosed and lockable containers, in accordance with 30 TEX. ADMIN. CODE § 328.60. Within 45 days after the effective date of this Order, submit written certification, in accordance with Ordering Provision No. 2.h., to demonstrate compliance with Ordering Provisions Nos. 2.a.i. through 2.a.iii., and 2.b. MORGAN BUILDING & SPA MANUFACTURING CORPORATION Docket No. 2017-1326-MLM-E Page 4 d. Within 60 days after the effective date of this Order: i. Develop and implement a Storm Water Pollution Prevention Plan to comply with the requirements of TPDES GP No. TXR050000; and ii. Submit a Notice of Intent through the State of Texas Environmental Electronic Reporting System, to obtain coverage under TPDES GP No. TXR050000. e. Within 75 days after the effective date of this Order, submit written certification, in accordance with Ordering Provision No. 2.h., to demonstrate compliance with Ordering Provisions Nos. 2.d.i. and 2.d.ii. f. Within 365 days after the effective date of this Order, remove all unauthorized waste stored and/or disposed of at the Plant, and dispose of it at an authorized facility. g. Within 380 days after the effective date of this Order, submit written certification, in accordance with Ordering Provision No. 2.h., to demonstrate compliance with Ordering Provision No. 2.f. h. The certifications required by these Ordering Provisions shall be accompanied by detailed supporting documentation, including photographs, receipts, and/or other records, shall be signed by Respondent, and shall include the following certification language: “I certify under penalty of law that I have personally examined and am familiar with the information submitted and all attached documents, and based on my inquiry of those individuals immediately responsible for obtaining the information, I believe the submitted information is true, accurate, and complete. I am aware there are significant penalties for submitting false information, including the possibility of fine and imprisonment for knowing violations.” The written certifications and supporting documentation necessary to demonstrate compliance with these Ordering Provisions shall be sent to: and: 3. Order Compliance Team Texas Commission on Environmental Quality Enforcement Division, MC 149A P.O. Box 13087 Austin, Texas 78711-3087 Waste Section Manager Corpus Christi Regional Office Texas Commission on Environmental Quality NRC Building, Suite 1200 6300 Ocean Drive, Unit 5839 Corpus Christi, Texas 78412-5839 All relief not expressly granted in this Order is denied. MORGAN BUILDING & SPA MANUFACTURING CORPORATION Docket No. 2017-1326-MLM-E Page 5 4. The duties and provisions imposed by this Order shall apply to and be binding upon Respondent. Respondent is ordered to give notice of this Order to personnel who maintain day-to-day control over the Plant operations referenced in this Order. 5. The Executive Director may grant an extension of any deadline in this Order or in any plan, report, or other document submitted pursuant to this Order, upon a written and substantiated showing of good cause. All requests for extensions by Respondent shall be made in writing to the Executive Director. Extensions are not effective until Respondent receives written approval from the Executive Director. The determination of what constitutes good cause rests solely with the Executive Director. Extension requests shall be sent to the Order Compliance Team at the address listed above. 6. If Respondent fails to comply with any of the Ordering Provisions in this Order within the prescribed schedules, and that failure is caused solely by an act of God, war, strike, riot, or other catastrophe, Respondent’s failure to comply is not a violation of this Order. Respondent shall have the burden of establishing to the Executive Director's satisfaction that such an event has occurred. Respondent shall notify the Executive Director within seven days after Respondent becomes aware of a delaying event and shall take all reasonable measures to mitigate and minimize any delay. 7. This Order, issued by the Commission, shall not be admissible against Respondent in a civil proceeding, unless the proceeding is brought by the OAG to: (1) enforce the terms of this Order, or (2) pursue violations of a statute within the TCEQ’s jurisdiction or of a rule adopted or an order or permit issued by the TCEQ under such a statute. 8. This Order may be executed in separate and multiple counterparts, which together shall constitute a single instrument. Any page of this Order may be copied, scanned, digitized, converted to electronic portable document format (“pdf”), or otherwise reproduced and may be transmitted by digital or electronic transmission, including but not limited to facsimile transmission and electronic mail. Any signature affixed to this Order shall constitute an original signature for all purposes and may be used, filed, substituted, or issued for any purpose for which an original signature could be used. The term “signature” shall include manual signatures and true and accurate reproductions of manual signatures created, executed, endorsed, adopted, or authorized by the person or persons to whom the signatures are attributable. Signatures may be copied or reproduced digitally, electronically, by photocopying, engraving, imprinting, lithographing, electronic mail, facsimile transmission, stamping, or any other means or process which the Executive Director deems acceptable. In this paragraph exclusively, the terms: electronic transmission, owner, person, writing, and written, shall have the meanings assigned to them under TEX. BUS. ORG. CODE § 1.002. 9. The effective date of this Order is the date it is signed by the Commission. A copy of this fully executed Order shall be provided to each of the parties. MORGAN BUILDING SPA MANUFACTURING CORPORATION Docket No. 2017-1326-MLM-E Page 6 SIGNATURE PAGE TEXAS COMMISSION ON ENVIRONMENTAL QUALITY For the Commission Date 00?. 20/? F'or the E??cutiv?/Director Date I, the undersigned, have read and understand the attached Order. I am authorized to agree to the attached Order, and I do agree to the terms and conditions specified therein. I further acknowledge that the TCEQ, in accepting payment for the penalty amount, is materially relying on such representation. I also understand that failure to comply with the Ordering Provisions in this Order and/or failure to timely pay the penalty amount may result in: - A negative impact on compliance history; - Greater scrutiny of any permit applications; . Referral of this case to the Attorney General?s office for contempt, injunctive relief, additional penalties, and/or attorney fees, or to a collection agency; - Increased penalties in any future enforcement actions; - Automatic referral to the Attorney General?s office of any future enforcement actions; and - The TCEQ seeking other relief as authorized by law. In addition, I understand that any falsification of any compliance documents may result in criminal prosecution. Sign?tum/J? Guy Moi/gen, President Date MORGAN BUILDING SPA MANUFACTURING CORPORATION P.O. BOX 660280 Dallas, Texas 75266 If mailing address has changed, please check this box and provide the new address below: