Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-caed-1_13-cv-01482/USCOURTS-caed-1_13-cv-01482-0/pdf.json

Nature of Suit Code: 893
Nature of Suit: Environmental Matters
Cause of Action: 42:7413(b) Clean Air Act

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ROBERT G. DREHER

Acting Assistant Attorney General

Environment &Natural Resources Division

United States Department of Justice

LORI JONAS (Bar No. 158268)

Senior Attorney

Telephone: (202) 514-4080

Environmental Enforcement Section

Environment &Natural Resources Division

United States Department of Justice

P.O. Box 7611

Washington, D.C. 20044

Attorneys for Plaintiff United States of America

CATHEKINE T. REDMOND (Bar No. 226957)

District Counsel

Telephone: (559) 230-6033

San Joaquin Valley Unified Air Pollution Control District

1990 E. Gettysburg Avenue

Fresno, California 93726

Attorney for Plaintiff San Joaquin Valley

Unified Air Pollution Control District

UNITED STATES DISTRICT COURT FOR THE

EASTERN DISTRICT OF CALIFORNIA

UNITED STATES OF AMERICA and

SAN JOAQUIN VALLEY UNIFIED

AIR POLLUTION CONTROL DISTRICT

Plaintiffs,

POST HOLDINGS, INC. and

RALCORP HOLDINGS, INC.

Defendants.

Case No.

CONSENT DECREE

Case 1:13-cv-01482-LJO-SAB Document 7 Filed 11/20/13 Page 1 of 41
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I. JURISDICTION AND VENUE ......................................................................................... 1

II. APPLICABILITY ...............................................................................................................2

III. DEFINITIONS ....................................................................................................................3

IV. CIVIL PENALTY ............................................................................................................... 6

V. COMPLIANCE REQUIREMENTS ................................................................................... 7

VI. REPORTING REQUIREMENTS .................................................................................... 14

VII. STIPULATED PENALTIES ............................................................................................ 16

VIII. FORCE MAJEURE .......................................................................................................... 20

IX. DISPUTE RESOLUTION ................................................................................................ 22

X. INFORMATION COLLECTION AND RETENTION ................................................... 24

XI. EFFECT OF SETTLEMENT/RESERVATION OF RIGHTS ......................................... 26

XII. COSTS .............................................................................................................................. 27

XIII. NOTICES ..........................................................................................................................28

XIV. EFFECTIVE DATE .......................................................................................................... 29

XV. RETENTION OF JURISDICTION .................................................................................. 29

XVI. MODIFICATION ............................................................................................................. 30

XVII. TERMINATION ...............................................................................................................30

XVIII. PUBLIC PARTICIPATION ............................................................................................. 31

XIX. SIGNATORIES/SERVICE ...............................................................................................31

XX. 1NTEGRATION ............................................................................................................... 32

XXI. FINAL JUDGMENT ........................................................................................................ 32

Case 1:13-cv-01482-LJO-SAB Document 7 Filed 11/20/13 Page 2 of 41
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WHEREAS, Plaintiff UNITED STATES OF AMERICA, on behalf of the United States

Environmental Protection Agency ("EPA"), and the SAN JOAQUIN VALLEY UNIFIED AIR

POLLUTION CONTROL DISTRICT ("District"), have filed a Complaint concurrently with this

Consent Decree, alleging that defendants POST HOLDINGS, INC. and; RALCORP

HOLDINGS, INC. ("Defendants") violated and/or continue to violate the Clean Air Act ("CAA"

or "the Act"), 42 U.S.C. § 7401 et seq., including the California State Implementation Plan

authorized by Section 110(a) of the Act, 42 U.S.C. § 7410 et seq., with regard to their ownership

and operation of a breakfast cereal manufacturing facility in Modesto, California (the "Facility");

WHEREAS, the Complaint seeks injunctive relief and the assessment of civil penalties

for alleged violations of District rules promulgated under the California State Implementation

Plan related to Defendants' ownership and operation of the Facility;

WHEREAS, the Facility was owned and operated by Kraft Foods, Inc. from 1975 until

August 4, 2008, and by Defendant Ralcorp Holdings, Inc. from August 4, 2008 until February 3,

2012 and is now currently owned and operated by Defendant Post Holdings, Inc.;

WHEREAS, EPA issued notices of violation ("NOVs") to Defendant Ralcorp Holdings,

Inc. with respect to such allegations on July 16, 2009;

WHEREAS, EPA issued NOVs to Kraft Foods, Inc. with respect to such allegations on

August 18, 2009;

WHEREAS, the District issued NOVs to Kraft Foods, Inc. with respect to such

allegations on October 8, 2009;

NOW, THEREFORE, without the adjudication or admission of any issue of fact or law

except as provided in Section I, without the admission of the liabilities in the Complaint, and

with the consent of the Parties, IT IS HEREBY ADJUDGED, ORDERED, AND DECREED as

follows:

I. JURISDICTION AND VENUE

1. This Court has jurisdiction over the subject matter of this action under Section 113(b)

of the Act, 42 U.S.C. § 7413(b), and under 28 U.S.C. §§ 1331, 1345, 1355 and

1367(a), and over the parties. This Court has supplemental jurisdiction over the State

Consent Decree 1

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law claims asserted by the District pursuant to 28 U.S.C. § 1367. Venue is proper in

this district under Section 113(b) of the Act, 42 U.S.C. § 7413(b), and 28 U.S.C. §§

1391 and 1395, because it is the judicial district in which the violations alleged in this

Complaint have occurred and are occurring.

2. For purposes of this Consent Decree, Defendants agree that the Complaint states

claims upon which relief may be granted pursuant to Sections) 113(a)(1)(C) and

113(b)(1) of the Clean Air Act, 42 U.S.C. §§ 7413(a)(1)(C) and 7413(b)(1).

II. APPLICABILITY

3. The obligations of this Consent Decree apply to and are binding upon the United

States and the District, and upon Defendants and any successors, assigns, or other

entities or persons otherwise bound by law.

4. No transfer of ownership of the Facility, whether in compliance with the procedures of

this Paragraph or otherwise, shall relieve Defendants of their obligation to ensure that

the terms of the Consent Decree are implemented. Defendants shall provide a copy of

this Consent Decree to any proposed transferee. At least 30 Days prior to a transfer of

ownership, Defendants shall provide a copy of this Consent Decree to the proposed

transferee and shall simultaneously provide written notice of the prospective transfer,

together with a copy of the proposed written agreement, to the United States, in

accordance with Section XIII (Notices) of this Consent Decree. Any attempt to

transfer ownership of the Facility without complying with this Paragraph constitutes a

violation of this Consent Decree.

5. Defendants shall provide a copy of this Consent Decree to all officers, employees, and

agents whose duties might reasonably include compliance with any provision of this

Decree.

6. In any action to enforce this Consent Decree, Defendants shall not raise as a defense

the failure by any of their officers, directors, employees, agents, or contractors to take

any actions necessary to comply with the provisions of this Consent Decree.

Consent Decree 2

Case 1:13-cv-01482-LJO-SAB Document 7 Filed 11/20/13 Page 4 of 41
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III. DEFINITIONS

7. Terms used in this Consent Decree that are defined in the Act or in regulations

promulgated pursuant to the Act shall have the meanings assigned to them in the Act

or such regulations, unless otherwise provided in this Consent Decree. Whenever the

terms set forth below are used in this Consent Decree, the following definitions shall

apply:

Consent Decree

a. "Bran Cereal Coating Reels" shall mean the five existing coating reels

that are utilized on the Bran Cereal Line denoted by SJVUAPCD

permit number N-1933-3-7.

b. "Bran Cereal Line" shall mean the existing cereal processing operation

at the Facility denoted by SJVUAPCD permit number N-1933-3-7.

c. "Complaint" shall mean the complaint filed by the United States and

the District in this action;

d. "Consent Decree" or "Decree" shall mean this consent decree;

e. "Date of Lodging" shall mean the date that this Consent Decree is

lodged in federal district court;

f. "Day" shall mean a calendar day unless expressly stated to be a

business day. In computing any period of time under this Consent

Decree, where the last day would fall on a Saturday, Sunday, or

federal holiday, the period shall run until the close of business of the

next business day;

g. "Defendants" shall mean Post Holdings, Inc. and Ralcorp Holdings,

Inc.;

h. "District" or "SVJUAPCD" shall mean the San Joaquin Valley

Unified Air Pollution Control District;

i. "EPA" shall mean the United States Environmental Protection Agency

and any of its successor departments or agencies;

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j. "Effective Date" shall have the definition provided in Section XIV of

this Consent Decree;

k. "Facility" shall mean the breakfast cereal manufacturing facility

located in Modesto, California that was owned and operated by

Defendant Ralcorp Holdings, Inc. from August 4, 2008 until February

3, 2012 and is currently owned and operated by Defendant Post

Holdings, Inc.;

1. "Finished Cereal Dryer" shall mean the existing natural gas dryer on

the Bran Cereal Line at the Facility denoted by SJVUAPCD permit

number N-1933-3-7.

m. "Grape Nuts Dryers" shall mean the existing dryers on the Grape Nuts

Process Line at the Facility denoted by SJVUAPCD as "System #11"

on permit number N-1933-4-2.

n. "Grape Nuts Oven" shall mean the existing oven line on the Grape

Nuts Process Line at the Facility denoted by SJVUAPCD permit

number N-1933-4-2.

o. "Grape Nuts Process Line" shall mean the existing cereal line at the

Facility denoted by SJVUAPCD permit number N-1933-4-2.

p. "Malfunction" shall mean a sudden and unavoidable failure or

breakdown of air pollution control equipment that: (i) is caused by

circumstances beyond the control of the Defendants; (ii) is not the

result of intent, neglect, or disregard of air pollution control laws, rules

or regulations; (iii) is not the result of improper maintenance; and (iv)

is not an excessively recurrent breakdown of the same equipment.

q. "Natural Draft Opening" shall mean any permanent opening in an

oven that remains open during operation of the facility and is not

connected to a duct in which a fan is installed.

Consent Decree 4

Case 1:13-cv-01482-LJO-SAB Document 7 Filed 11/20/13 Page 6 of 41
1 r. "Operating Pressure" shall mean the static pressure indicated by a

2 gauge or pressure transmitter in part of a system.

3 s. "Paragraph" shall mean a portion of this Decree identified by an

4 Arabic numeral;

5 t. "Parties" shall mean the United States, the District, and Defendants;

6 u. Regenerative Thermal Oxidizer ("RTO") shall mean an air pollution

~ control device rated at 8.959 MMBTU/HR and 31,500 standard cubic

g feet per minute ("SCFM") (or an equivalent manufacturer and model)

9 as described in SJVAPCD permits N-1933-3-7 and N-1933-4-2.

10 v. " RTO Minimum Temperature" shall mean the minimum RTO

11 chamber temperature averaged over a 30-consecutive-minute block

12 period.

13 w. "Section" shall mean a portion of this Decree identified by a roman

14 numeral;

15 x. "State" shall mean the State of California;

16 y. "STPD 10" shall mean the exhaust ducting before the fan for the Bran

1 ~ Cereal Coating Reels connected to the Finished Cereal Dryer.

1 g z. "STPD 11" shall mean the exhaust ducting before the fan for the Bran

19 Cereal Coating Reels not connected to the Finished Cereal Dryer.

20 aa. "United States" shall mean the United States of America, acting on

21 behalf of EPA.

22 bb."VOC" or "VOCs" shall mean volatile organic compounds as defined

23 by 40 C.F.R. §51. 100(s).

24 cc. "VOC Reduction Efficiency" shall be determined by a compliance test

25 and shall mean:

26 (LCin—~out~l 

x. 1~~

Cin l

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Consent Decree 5

Case 1:13-cv-01482-LJO-SAB Document 7 Filed 11/20/13 Page 7 of 41
1 Where C;,, is the concentration of VOCs at the inlet of the RTO and Co„t is the

2 concentration of VOCs at the outlet of the RTO.

3 IV. CIVIL PENALTY

4 8. Within 30 Days of the Effective Date, Defendants shall pay the sum of $317,500 as a

5 civil penalty to the United States, together with interest accruing from the Date of

6 Lodging, at the rate specified in 28 U.S.C. § 1961 as of the Effective Date.

~ 9. Defendants shall pay the civil penalty due by FedWire Electronic Funds Transfer

g ("EFT") to the U.S. Department of Justice in accordance with written instructions to

9 be provided to Defendants, following entry of the Consent Decree, by the Financial

10 Litigation Unit of the U.S. Attorney's Office for the Eastern District of California, 501

11 I Street, Suite 10-100, Sacramento, California 95814-2322, telephone number (916)

12 554-2700. At the time of payment, Defendants shall send a copy of the EFT

13 authorization form and the EFT transaction record, together with a transmittal letter,

14 which shall state that the payment is for the civil penalty owed pursuant to the Consent

15 Decree in United States et al. v. Post Foods, et al., and shall reference the civil action

16 number and DOJ case number 90-5-2-1-10136, to the United States in accordance with

17 Section XIII (Notices) of this Consent Decree; by email to

ig cinwd acctsreceivable@epa.gov; or by mail to:

19 EPA Cincinnati Finance Office

20 26 Martin Luther King Drive

Cincinnati, OH 45268

21 10. Defendants shall not deduct any penalties paid under this Decree pursuant to this

22 Section or Section VII (Stipulated Penalties) in calculating its federal, state and local

23 income tax.

24 11. Within 30 Days of the Effective Date, Defendants shall pay the sum of $317,500 as a

25 civil penalty to the District, together with interest accruing from the Date of Lodging,

26 at the rate specified in 28 U.S.C. § 1961 as of the Effective Date. Payment shall be

27 made by delivery of a check made payable to the San Joaquin Valley Unified Air

28 Pollution Control District and delivered by certified U.S. Mail to:

Consent Decree 6

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San Joaquin Valley Unified Air Pollution Control District

Attn: District Counsel's Office

1990 E. Gettysburg Avenue

Fresno, CA 93726

V. COMPLIANCE REQUIREMENTS

12. VOC Control Requirements for the Grape Nuts Oven, Grape Nuts Dryers, Bran

Cereal Coating Reels, and Finished Cereal Dryer:

a. The RTO shall capture and control 95% of the VOC emissions from the

Grape Nuts Oven, Grape Nuts Dryers, Bran Cereal Coating Reels, and

Finished Cereal Dryer.

b. Defendants shall operate the RTO such that it receives VOC emissions

from the Grape Nuts Oven, Grape Nuts Dryers, Bran Cereal Coating

Reels, and Finished Cereal Dryer at all times these units are being used

for the production of cereal.

c. Defendants shall operate the Grape Nuts Oven, Grape Nuts Dryers, Bran

Cereal Coating Reels, and Finished Cereal Dryer such that all VOC

emissions from these particular sources are vented to the RTO.

d. Air flow through each natural draft opening ("NDO") shall be directed

into an associated oven, dryer, or reel compartment that is ducted to the

RTO.

e. RTO Minimum Temperature:

i. The RTO Minimum Temperature shall maintain at least 95%

control efficiency for VOCs.

ii. The RTO Minimum Temperature shall be established during

compliance testing.

iii. The RTO chamber temperature shall be in operation at or above

the RTO Minimum Temperature during cereal manufacturing and

within 24 hours after the completion of the initial compliance test.

28 ~ ~ f. Operating Pressure Ranges:

Consent Decree

Case 1:13-cv-01482-LJO-SAB Document 7 Filed 11/20/13 Page 9 of 41
1 i. Within 30 days of the Effective Date of this Consent Decree, the

2 Defendants shall install: (A) a pressure gauge in the ducting being

3 used to direct air flow to the RTO from the Grape Nuts Oven, two

4 Grape Nuts Dryers, five Bran Cereal Coating Reels, and Finished

5 Cereal Dryer (the "Common Pressure Gauge"); (B) a pressure gauge in

6 .the ducting at STPD 10 ("STPD 10 Pressure Gauge"); and (C) a

7 pressure gauge in the ducting at STPD 11 ("STPD 11 Pressure

g Gauge").

9 ii. The Operating Pressure Range at the Common Pressure Gauge shall be

10 established by Defendants during a compliance test.

11 iii. Operating Pressure Ranges for STPD 10 and STPD 11

12 1. Within 30 days after the pressure gauges have been installed,

13 the Operating Pressure Ranges for the STPD 10 and STPD 11

14 Pressure Gauges shall be established by Defendants using the

15 procedure described in Attachment A to this Consent Decree.

16 2. Within 15 days after completing the requirement in Paragraph

17 12.f.iii.1 of this Consent Decree, Defendants shall submit a

1 g notification to EPA and the District that states the Operating

19 Pressure Ranges for STPD 10 and STPD 11. This notification

20 shall include documentation that supports the Defendants'

21 determination of the pressure ranges for STPD 10 and STPD

22 11.

23 iv. The Operating Pressure Ranges will indicate a vacuum and be

24 measured in negative inches of water column.

25 v. Within 24 hours after of establishing the Operating Pressure Ranges,

26 Defendants shall operate the Facility such that the Operating Pressure

27 for the Common Pressure Gauge, SPTD 10 Pressure Gauge, and SPTD

►.~:

Consent Decree 8

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11 Pressure Gauge are within the established Operating Pressure

Ranges during cereal manufacturing.

vi. A deviation from the Operating Pressure Ranges measured by the

Common Pressure Gauge, SPTD 10 Pressure Gauge, and SPTD 11

Pressure Gauge shall not be considered a violation of this Consent

Decree if Defendants demonstrate that the deviation resulted from

commencing, ceasing operation, or non-operation of these emissions

units.

g. Emission reduction credits: VOC emission reductions that result from

the installation and operation of the RTO and compliance with the

VOC Control Requirements of this Decree shall not be used to

generate emission reduction credits or as netting reductions or

emissions offsets in any permitting transaction. Except as specifically

set forth in this subparagraph 12.g., Defendants may exercise any

claim they may have with respect to any other emission reduction

credits, netting reductions or emissions offsets allowed under

applicable regulations.

13. Compliance Testing. Within 20 days of the date of entry of the Decree and

annually thereafter, Defendants shall demonstrate compliance with: (1) the RTO

VOC Reduction Efficiency, and (2) VOC Capture Efficiency for the Grape Nuts

Oven, Grape Nuts Dryers, Bran Cereal Coating Reels, and Finished Cereal Dryer,

as set forth herein:

a. RTO VOC Reduction Efficiency: The compliance testing for the VOC

Reduction Efficiency shall be performed using:

i. EPA Method 25 or 25A to measure VOC emissions;

ii. EPA Method 2, 2A, or 2D for measuring flow rates; and

iii. The arithmetic average of three 60-consecutive-minute test runs;

Consent Decree

Case 1:13-cv-01482-LJO-SAB Document 7 Filed 11/20/13 Page 11 of 41
1 iv. Nothing in paragraph 13.a(i-iii) shall prevent Defendants from

2 using other test methods or modifications of the test methods in

3 paragraph 13.a(i-iii) if EPA and the District have approved such

4 other test methods or modifications in writing prior to the

5 occurrence of testing.

6 b. VOC Capture Efficiency:

~ i. The compliance test for determining the direction of air flow

g through each NDO associated with the Grape Nuts Oven, Grape

9 Nuts Dryers, Bran Cereal Coating Reels, and Finished Cereal

10 Dryer shall be conducted using EPA Method ALT-20.

11 ii. Upon completion of successful compliance demonstration of EPA

12 Method ALT-20, VOC Capture Efficiency can be assumed to be

13 100 percent for the NDO.

14 c. During compliance testing, the cereal processing equipment shall be

15 operated:

16 i. At or above 90% of the maximum hourly processing capacity; and

1 ~ ii. Under representative of normal operating conditions. A

1 g determination of compliance shall not be established within two

19 hours after a continuous period in which fuel flow to any unit is

20 shut off for 30 minutes or longer, or within 30 minutes after a re21 lighting of any unit resulting from an unscheduled or unavoidable

22 shut off of the fuel flow or electric power to the any unit.

23 d. Defendants shall meet the following milestones during compliance

24 testing:

25 i. At least 15 days prior to testing, Defendants must submit a

26 protocol to EPA and the District for approval.

27

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Consent Decree 10

Case 1:13-cv-01482-LJO-SAB Document 7 Filed 11/20/13 Page 12 of 41
1 ii. At least 30 days prior to testing, Defendants must provide written

2 notification to EPA and the District of the dates) that testing will

3 take place.

4 iii. Within 15 Days after completion of the compliance

5 test, Defendants must submit a notification to EPA and the

6 District that states the RTO Minimum Temperature and the

~ Operating Pressure Ranges for the Common Pressure Gauge. This

g notification shall include supporting documentation on how the

9 Defendants determined these values.

10 iv. Within 60 days of completion of the test, Defendants must submit

11 the testing results to the District and to EPA.

12 e. If Defendants perform a compliance test within twelve months prior to the

13 Effective Date of this Consent Decree in accordance with SJVUAPCD

14 permit numbers N-1933-3-7 and N-1933-4-2 (the "Permit Test"),

15 Defendants may, within twenty days of the Effective Date, submit the

16 Permit Test results as satisfying the Initial Compliance Test requirements.

17 EPA and the District shall notify the Defendants in writing whether they

1 g accept the Permit Test as satisfying the Initial Compliance Test

19 requirement. The decision by EPA and the District to accept the Permit

20 Test as satisfying the Initial Compliance Test requirement shall not be

21 subject to Dispute Resolution, If EPA or the District does not accept the

22 Permit Test as satisfying the Initial Compliance Test requirement (the

23 "Test Objection") and the Permit Test shows that the RTO satisfied

24 Paragraph 12.a of this Consent Decree, then the Defendants shall have up

25 to six months from the Test Objection to perform another compliance

26 test. Defendants shall not be subject to stipulated penalties for failing to

27 perform the Initial Compliance Test as long as they satisfy the

28 requirements of this paragraph.

Consent Decree 11

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14. Operation and Maintenance Plan ("O&M Plan"): The Defendants shall submit to EPA

and the District for review an O&M Plan within 30 Days of the Effective Date of this

Consent Decree.

a. The O&M Plan shall address at a minimum: operation and

maintenance of the RTO (including required RTO Temperature

monitoring and Operating Pressure monitoring for Common Pressure

Gauge, STPD 10 Pressure Gauge, and STPD 11 Pressure Gauge).

b. The O&M Plan shall include, but need not be limited to, the following

procedures: 1) identification function of responsible facility personnel;

2) equipment inspections/inspection frequency; 3) operation and

maintenance procedures; 4) identification of critical components; 5)

spare parts lists/inventory; and 6) recordkeeping/reporting procedures.

15. Monitoring Requirements:

a. The RTO shall be permanently equipped with temperature

Consent Decree

measurement devices.

b. The RTO's combustion chamber temperature shall be continuously

monitored and recorded at least every 15 minutes during cereal

processing. The recorded temperature data shall be averaged over a

30-consecutive-minute block to demonstrate compliance with the RTO

Minimum Temperature.

c. The Common Pressure Gauge shall be used to measure the Operating

Pressure for the Grape Nuts Oven, two Grape Nuts Dryers, five Bran

Cereal Coating Reels, and Finished Cereal Dryer.

d. The STPD 10 Pressure Gauge shall be used to measure the Operating

Pressure for the Bran Cereal Coating Reels connected to the Finished

Cereal Dryer.

12

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e. The STPD 11 Pressure Gauge shall be used to measure the Operating

Pressure for the Bran Cereal Coating Reels that are not connected to

the Finished Cereal Dryer.

f. The Operating Pressures measured at the Common Pressure Gauge

shall be monitored and recorded on a daily basis. The recorded

pressure data shall be used to demonstrate compliance of the Operating

Pressure Range established during the compliance test for the

Common Pressure Gauge.

g. The Operating Pressure measured on STPD 10 shall be monitored and

recorded on a daily basis when flakes are processed through the Bran

Cereal Coating Reels connected to the Finished Cereal Dryer. The

recorded pressure data shall be used to demonstrate compliance of the

Operating Pressure Range established in Paragraph 12.f. iii of this

Consent Decree.

h. The Operating Pressure measured on STPD 11 shall be monitored and

recorded on a daily basis when flakes are processed through the Bran

Cereal Coating Reels not connected to the Finished Cereal Dryer. The

recorded pressure data shall be used to demonstrate compliance of the

Operating Pressure Range established in Paragraph 12.f. iii of this

Consent Decree.

i. Upon any deviation from the RTO Minimum Temperature and the

Operating Pressures Ranges (for the Common Pressure Gauge, STPD

10 Pressure Gauge, and STPD 11 Pressure Gauge), Defendants shall

investigate the temperature or pressure deviation and take corrective

action to minimize excessive emissions as expeditiously as practicable.

16. Recordkeeping Requirements:

a. Defendants shall maintain the following daily records at the Facility: (1)

total quantity of Grape Nuts produced in tons/day; (2) total quantity of

Consent Decree 13

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flakes processed (before inlays) in tons/day; (3) total quantity of cereal

flakes processed through all Bran Cereal Coating Reels in tons/day; (4)

total quantity of cereal flakes processed through the Finished Cereal

Dryer in tons/day; (5) RTO combustion chamber temperature; (6)

Operating Pressure for the Common Pressure Gauge (in inches of water

or mercury); (7) Operating Pressure for STPD 10 Pressure Gauge (in

inches of water or mercury); (8) Operating Pressure for STPD 11

Pressure Gauge (in inches of water or mercury); (9) total fuel used in

MMscf/day for the Grape Nuts Oven; (10) total fuel used in MMscf/day

for the Finished Cereal Dryer; (11) total fuel use in MMscf/day in the

RTO; and (12) RTO downtime and the reason of downtime.

b. Defendants shall maintain records of deviations from the RTO

Minimum Temperature requirement in Paragraph 12.e. of this Consent

Decree.

c. Defendants shall maintain records of deviations of the Operating

Pressure Ranges (for the Common Pressure Gauge, STPD 10 Pressure

Gauge and STPD 11 Pressure Gauge) requirement in Paragraph 12.f.

of this Consent Decree.

VI. REPORTING REQUIREMENTS

17. Quarterly Reports:

Consent Decree

a. Within 30 Days after the end of each calendar year quarter (i.e., by

Apri130, July 30, October 30, and January 30) following the Effective

Date of this Consent Decree, until termination of this Decree pursuant to

Section XVII (Termination), Defendants shall submit a quarterly report to

EPA and the District that includes the following: A quarterly summary of:

(1) total operating hours of the RTO; (2) number of hours and percentage

of down-time of the RTO (i.e., hours when the RTO is by-passed due to a

malfunction); (3) number of hours and percentage of time that the RTO

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temperature is below the RTO Minimum Temperature established during

compliance testing; (4) number of hours and percentage of time the RTO

temperature recording device is inoperative; and (5) excursions recorded

as required by Paragraph 16 of this Consent Decree.

b. Each quarterly report shall also include a description of any noncompliance with the requirements of this Consent Decree and an

explanation of the violation's likely cause and of the remedial steps

taken, or to be taken, to prevent or minimize such violation.

c. Quarterly reports can be submitted in an electronic format.

18. If Defendants violate, or are on notice that they may materially violate, any

requirement Section V of this Consent Decree, Defendants shall notify the United

States and the District of such violation and its likely duration, in writing, within ten

business Days of the Day Defendants first become aware of the violation or

prospective violation, with an explanation of the violation's likely cause and of the

remedial steps taken, or to be taken, to prevent or minimize such violation. If the

cause of a violation cannot be fully explained at the time the notification is due,

Defendants shall so state in the notification. Defendants shall investigate the cause of

the violation and shall then provide a full explanation of the cause of the violation in

the next quarterly report due pursuant to Paragraph 17. Nothing in this Paragraph or

the following Paragraph relieves Defendants of their obligation to provide the notice

required by Section VIII (Force Majeure) of this Consent Decree.

19. Whenever any violation of this Consent Decree or of any applicable permits or any

other event affecting Defendants' performance under this Decree, or the performance

of the Facility may pose an immediate threat to the public health or welfare or the

environment, Defendants shall notify EPA and the District orally or by electronic or

facsimile transmission as soon as possible, but no later than 24 hours after Defendants

first knew of the violation or event. This procedure is in addition to the requirements

set forth in the preceding Paragraph.

Consent Decree 15

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20. All reports shall be submitted to the persons designated in Section XIII (Notices) of

this Consent Decree.

21. Each report submitted by Defendants under this Section shall be signed by an official

of Defendants and include the following certification:

I certify under penalty of law that this document and all attachments were

prepared under my direction or supervision in accordance with a system designed

to assure that qualified personnel properly gather and evaluate the information

submitted. Based on my inquiry of the person or persons who manage the system,

or those persons directly responsible for gathering the information, the

information submitted is, to the best of my knowledge and belief, true, accurate,

and complete. I am aware that there are significant penalties for submitting false

information, including the possibility of fine and imprisonment for knowing

violations.

This certification requirement does not apply to emergency or similar notifications

where compliance would be impractical.

22. The reporting requirements of this Consent Decree do not relieve Defendants of any

reporting obligations required by the Clean Air Act or implementing regulations, or by

any other federal, state, or local law, regulation, permit, or other requirement.

23. Any information provided pursuant to this Consent Decree may be used by the United

States in any proceeding to enforce the provisions of this Consent Decree and as

otherwise permitted by law.

VII. STIPULATED PENALTIES

24. Defendants shall be liable for stipulated penalties to the United States and the District

for violations of this Consent Decree as specified below, unless excused under Section

VIII (Force Majeure). A violation includes failing to perform any obligation required

by the terms of this Decree, including any work plan or schedule approved under this

Decree, according to all applicable requirements of this Decree and within the

specified time schedules established by or approved under this Decree.

25. Late Payment of Civil Penalty. If Defendants fail to pay the entirety of the civil

penalty required to be paid under Section IV (Civil Penalty) of this Decree to both

Consent Decree 16

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Plaintiffs when due, Defendants shall pay a stipulated penalty of $5,000 per Day for

each Day that the payment, to either or both Plaintiffs, is late.

26. VOC Control Requirements.

a. The following stipulated penalties shall accrue per calendar day when

there is one or more violations of the RTO Minimum Temperature in

Paragraph 12.e above:

Penalty Per Violation Per Period Period of Noncompliance

$500 1St day (or any fraction thereo f

$1,~0~ Znd t0 I Oth C~2yS

$2,000 l lt" to 30th day

$3,000 31St day and each day beyond

b. The following stipulated penalties shall accrue per violation of each

calendar day (or fraction thereo f of requirements Paragraphs 12.a,

12.b, 12.c, 12.f above:

Penaltyper Violation per Day Period of Noncompliance

$500 1St through 71h day

$750 8th through 14th day

$1,000 15th day and beyond

27. VOC Compliance Testing. The following stipulated penalties shall accrue per

violation per calendar day for each violation of the requirements related to compliance

testing as required by Paragraphs 13.a, 13.b, and 13.c of this Consent Decree:

Penalty per Violation per Day Period of Noncompliance

$500 1st through 14th day

$750 15th through 30th day

$1,000 31St day and beyond

28. O&M Plan Requirement. The following stipulated penalties shall accrue per violation

per calendar day for each violation of the requirements for development and submittal

of an O&M Plan as required by Paragraph 14 of this Consent Decree:

Consent Decree 17

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Penalty per Violation per DaX Period of Noncompliance

$500 1St through 30th day

$1,000 31St day and beyond

29. For Defendant's failure to comply with any other requirement of Sections V and VI of

this Consent Decree not specifically referenced in Paragraphs 26-28 above:

Penaltyper Violation per Calendar Day Period of Noncompliance

$250 1St through 14th day

$500 15t" through 30t" day

$1,000 31St day and beyond

30. Stipulated penalties under this Section shall begin to accrue on the calendar day after

performance is due or on the calendar day a violation occurs, whichever is applicable,

and shall continue to accrue until performance is satisfactorily completed or until the

violation ceases. Except as otherwise provided, stipulated penalties shall accrue

simultaneously for separate violations of this Consent Decree.

31. The United States, or the District, or both, may seek stipulated penalties under this

Section by sending a joint written demand to Defendants, or by either Plaintiff sending

a written demand to the Defendants, with a copy simultaneously sent to the other

Plaintiff. Either Plaintiff may waive stipulated penalties or reduce the amount of

stipulated penalties it seeks, in the unreviewable exercise of its discretion and in

accordance with this Paragraph. Where both Plaintiffs seek stipulated penalties for the

same violation of this Consent Decree, Defendants shall pay fifty percent to the United

States and fifty percent to the District. Where only one Plaintiff demands stipulated

penalties for a violation, and the other sovereign does not join in the demand within

ten Days of receiving the demand, or timely joins in the demand but subsequently

elects to waive or reduce stipulated penalties for that violation, Defendants shall pay

the full stipulated penalties due for the violation to the Plaintiff making the demand

less any amount paid to the other Plaintiff.

Consent Decree 18

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32. Stipulated penalties shall continue to accrue as provided in Paragraph 30, during any

Dispute Resolution, but need not be paid until the following:

a. If the dispute is resolved by agreement or by a decision of EPA or the

District that is not appealed to the Court, Defendants shall pay accrued

penalties determined to be owing, together with interest, to the United

States or the District, or to both, within 30 Days of the effective date of

the agreement or the receipt of EPA's or the State's decision or order.

b. If the dispute is appealed to the Court and the United States or the

District prevails in whole or in part, Defendants shall pay all accrued

penalties determined by the Court to be owing, together with interest,

within 60 Days of receiving the Court's decision or order, except as

provided in subparagraph c, below.

c. If any Party appeals the District Court's decision, Defendants shall pay

all accrued penalties determined to be owing, together with interest,

within 15 Days of receiving the final appellate court decision.

33. Defendants shall pay stipulated penalties owing to the United States in the manner set

forth and with the confirmation notice required by Paragraph 9, except that the

transmittal letter shall state that the payment is for stipulated penalties and shall state

for which violations) the penalties are being paid. Defendants shall pay stipulated

penalties owing to the District in the manner set forth and in Paragraph 11, except that

the transmittal letter shall state that the payment is for stipulated penalties and shall

state for which violations) the penalties are being paid.

34. If Defendants fail to pay stipulated penalties according to the terms of this Consent

Decree, Defendants shall be liable for interest on such penalties, as provided for in

28 U.S.C. § 1961, accruing as of the date payment became due. Nothing in this

Paragraph shall be construed to limit the United States or the District from seeking any

remedy otherwise provided by law for Defendants' failure to pay any stipulated

penalties.

Consent Decree 19

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35. Subject to the provisions of Section XI (Effect of Settlement/Reservation of Rights) of

this Consent Decree, the stipulated penalties provided for in this Consent Decree shall

be in addition to any other rights, remedies, or sanctions available to the United States

for Defendants' violation of this Consent Decree or applicable law. Where a violation

of this Consent Decree is also a violation of the Clean Air Act, the California Health

and Safety Code and District regulations, Defendants shall be allowed a credit, for any

stipulated penalties paid, against any statutory penalties imposed for such violation.

VIII. FORCE MAJEURE

36. "Force majeure," for purposes of this Consent Decree, is defined as any event arising

from causes beyond the control of Defendants, of any entity controlled by Defendants,

or of Defendants' contractors, that delays or prevents the performance of any

obligation under this Consent Decree despite Defendants' best efforts to fulfill the

obligation. The requirement that Defendants exercise "best efforts to fulfill the

obligation" includes using best efforts to anticipate any potential force majeure event

and best efforts to address the effects of any such event (a) as it is occurring and (b)

after it has occurred to prevent or minimize any resulting delay to the greatest extent

possible. "Force majeure" does not include Defendants' financial inability to perform

any obligation under this Consent Decree.

37. If any event occurs or has occurred that may delay the performance of any obligation

under this Consent Decree, whether or not caused by a force majeure event,

Defendants shall provide notice orally or by electronic or facsimile transmission to

Manager, Air and TRI Enforcement Office (ENF-2-1), Enforcement Division, U.S.

Environmental Protection Agency, Region IX, within 72 hours of when Defendants

first knew that the event might cause a delay. Within seven days thereafter,

Defendants shall provide in writing to EPA and the District an explanation and

description of the reasons for the delay; the anticipated duration of the delay; all

actions taken or to be taken to prevent or minimize the delay; a schedule for

implementation of any measures to be taken to prevent or mitigate the delay or the

Consent Decree 20

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effect of the delay; Defendants' rationale for attributing such delay to a force majeure

event if it intends to assert such a claim; and a statement as to whether, in the opinion

of Defendants, such event may cause or contribute to an endangerment to public

health, welfare or the environment. Defendants shall include with any notice all

available documentation supporting the claim that the delay was attributable to a force

majeure. Failure to comply with the above requirements shall preclude Defendants

from asserting any claim of force majeure for that event for the period of time of such

failure to comply, and for any additional delay caused by such failure. Defendants

shall be deemed to know of any circumstance of which Defendants, any entity

controlled by Defendants, or Defendants' contractors knew or should have known.

38. If EPA, after a reasonable opportunity for review and comment by the District, agrees

that the delay or anticipated delay is attributable to a force majeure event, the time for

performance of the obligations under this Consent Decree that are affected by the force

majeure event will be extended by EPA, after a reasonable opportunity for review and

comment by the District, for such time as is necessary to complete those obligations.

An extension of the time for performance of the obligations affected by the force

majeure event shall not, of itself, extend the time for performance of any other

obligation. EPA will notify Defendants in writing of the length of the extension, if

any, for performance of the obligations affected by the force majeure event.

39. If EPA, after a reasonable opportunity for review and comment by the District, does

not agree that the delay or anticipated delay has been or will be caused by a force

majeure event, EPA will notify Defendants in writing of its decision.

40. If Defendants elect to invoke the dispute resolution procedures set forth in Section IX

(Dispute Resolution), they shall do so no later than 15 Days after receipt of EPA's

notice. In any such proceeding, Defendants shall have the burden of demonstrating by

a preponderance of the evidence that the delay or anticipated delay has been or will be

caused by a force maj eure event, that the duration of the delay or the extension sought

was or will be warranted under the circumstances, that best efforts were exercised to

Consent Decree 21

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avoid and mitigate the effects of the delay, and that Defendants complied with the

requirements of Paragraphs 36 and 37, above. If Defendants carry this burden, the

delay at issue shall be deemed not to be a violation by Defendants of the affected

obligation of this Consent Decree identified to EPA and the Court.

IX. DISPUTE RESOLUTION

41. Unless otherwise expressly provided for in this Consent Decree, the dispute resolution

procedures of this Section shall be the exclusive mechanism to resolve disputes arising

under or with respect to this Consent Decree. Defendants' failure to seek resolution of

a dispute under this Section shall preclude Defendants from raising any such issue as a

defense to an action by the United States or the District to enforce any obligation of

Defendants arising under this Decree.

42. Informal Dispute Resolution. Any dispute subject to Dispute Resolution under this

Consent Decree shall first be the subject of informal negotiations. The dispute shall be

considered to have arisen when Defendants send the United States and the District a

written Notice of Dispute. Such Notice of Dispute shall state clearly the matter in

dispute. The Parties receiving such a notice shall acknowledge receipt of the notice

and the Parties shall expedite scheduling of a meeting (which may occur in person or

by telephone conference). The period of informal negotiations shall not exceed 20

Days from the date the dispute arises, unless that period is modified by written

agreement of the Parties. If the Parties cannot resolve a dispute by informal

negotiations, then the position advanced by the United States and the District shall be

considered binding unless, within 10 Days after the conclusion of the informal

negotiation period, Defendants invoke formal dispute resolution procedures as set

forth below.

43. Formal Dispute Resolution. Defendants shall invoke formal dispute resolution

procedures, within the time period provided in the preceding Paragraph, by serving on

the United States and the District a written Statement of Position regarding the matter

in dispute. The Statement of Position shall include, but need not be limited to, any

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factual data, analysis, or opinion supporting Defendants' position and any supporting

documentation relied upon by Defendants.

44. The United States and District shall serve their Statement of Position within 45 Days

of receipt of Defendants' Statement of Position. The United States' and District's

Statement of Position shall include, but need not be limited to, any factual data,

analysis, or opinion supporting that position and any supporting documentation relied

upon by them. The United States' and District's Statement of Position shall be

binding on Defendants, unless Defendants file a motion for judicial review of the

dispute in accordance with the following Paragraph.

45. Defendants may seek judicial review of the dispute by filing with the Court and

serving on the United States and the District, in accordance with Section XIII

(Notices) of this Consent Decree, a motion requesting judicial resolution of the

dispute. The motion must be filed within 10 Days of receipt of the United States' and

District's Statement of Position pursuant to the preceding Paragraph. The motion shall

contain a written statement of Defendants' position on the matter in dispute, including

any supporting factual data, analysis, opinion, or documentation, and shall set forth the

relief requested and any schedule within which the dispute must be resolved for

orderly implementation of the Consent Decree.

46. The United States and District shall respond to Defendants' motion within the time

period allowed by the Local Rules of this Court. Defendants may file a reply

memorandum, to the extent permitted by the Local Rules.

47. Standard of Review

Consent Decree

a. Disputes Concerning Matters Accorded Record Review. Except as

otherwise provided in this Consent Decree, in any dispute brought

under Paragraph 43 pertaining to the adequacy or appropriateness of

plans, procedures to implement plans, schedules or any other items

requiring approval by EPA and the District under this Consent Decree

and all other disputes that are accorded review on the administrative

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record under applicable principles of administrative law, Defendants

shall have the burden of demonstrating, based on the administrative

record, that the position of the United States and District is arbitrary

and capricious or otherwise not in accordance with law.

b. Other Disputes. Except as otherwise provided in this Consent Decree,

in any other dispute brought under Paragraph 43, Defendants shall

bear the burden of demonstrating that their position complies with this

Consent Decree.

48. The invocation of dispute resolution procedures under this Section shall not, by itself,

extend, postpone, or affect in any way any obligation of Defendants under this

Consent Decree, unless and until final resolution of the dispute so provides. Stipulated

penalties with respect to the disputed matter shall continue to accrue from the first Day

of noncompliance, but payment shall be stayed pending resolution of the dispute as

provided in Paragraph 32. If Defendants do not prevail on the disputed issue,

stipulated penalties shall be assessed and paid as provided in Section VII (Stipulated

Penalties).

X. INFORMATION COLLECTION AND RETENTION

49. The United States, the District, and their representatives, including attorneys,

contractors, and consultants, shall have the right of entry into any facility covered by

this Consent Decree, at all reasonable times, upon presentation of credentials, to:

a. monitor the progress of activities required under this Consent Decree;

b. verify any data or information submitted to the United States or the

Consent Decree

District in accordance with the terms of this Consent Decree;

c. obtain samples and, upon request, splits of any samples taken by

Defendant or their representatives, contractors, or consultants;

d. obtain documentary evidence, including photographs and similar data;

and

e. assess Defendants' compliance with this Consent Decree.

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50. Until three years after the termination of this Consent Decree, Defendants, or their

successors or assigns, shall retain, and shall instruct their contractors and agents to

preserve, all non-identical copies of all documents, records, or other information

(including documents, records, or other information in electronic form) in their or their

contractors' or agents' possession or control, or that come into their or their

contractors' or agents' possession or control, and that relate in any manner to

Defendants' performance of its obligations under this Consent Decree. This

information-retention requirement shall apply regardless of any contrary corporate or

institutional policies or procedures. At any time during this information-retention

period, upon request by the United States or the District, Defendants shall provide

copies of any documents, records, or other information required to be maintained

under this Paragraph.

51. At the conclusion of the information-retention period provided in the preceding

Paragraph, Defendants shall notify the United States and the District at least 90 Days

prior to the destruction of any documents, records, or other information subject to the

requirements of the preceding Paragraph and, upon request by the United States or the

District, Defendants shall deliver any such documents, records, or other information to

EPA or the District.

52. Defendants may assert that certain documents, records, or other information is

privileged under the attorney-client privilege or any other privilege recognized by

federal law. If Defendants assert such a privilege, they shall provide the following:

(1) the title of the document, record, or information; (2) the date of the document,

record, or information; (3) the name and title of each author of the document, record,

or information; (4) the name and title of each addressee and recipient; (5) a description

of the subject of the document, record, or information; and (6) the privilege asserted

by Defendants. However, no documents, records, or other information created or

generated pursuant to the requirements of this Consent Decree shall be withheld on

grounds of privilege.

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53. Defendants may also assert that information required to be provided under this Section

is protected as Confidential Business Information ("CBI") under 40 C.F.R. Part 2. As

to any information that Defendants seek to protect as CBI, Defendants shall follow the

procedures set forth in 40 C.F.R. Part 2.

54. This Consent Decree in no way limits or affects any right of entry and inspection, or

any right to obtain information, held by the United States or the District pursuant to

applicable federal or state laws, regulations, or permits, nor does it limit or affect any

duty or obligation of Defendants to maintain documents, records, or other information

imposed by applicable federal or state laws, regulations, or permits.

XI. EFFECT OF SETTLEMENT/RESERVATION OF RIGHTS

55. Except as expressly provided for herein, this Consent Decree resolves the civil claims

of the United States and the District against the Defendants for the violations alleged

in the Complaint filed in this action and the Notices of Violation regarding air

emissions at the Modesto facility that were issued by the District and EPA on July 16,

2009, August 18, 2009, and October 8, 2009, through the Date of Lodging of the

Consent Decree.

56. The United States and the District reserve all legal and equitable remedies available to

enforce the provisions of this Consent Decree, except as expressly stated in Paragraph

55. This Consent Decree shall not be construed to limit the rights of the United States

or the District to obtain penalties or injunctive relief under the Act or implementing

regulations, or under other federal or state laws, regulations, or permit conditions,

except as expressly specified in Paragraph 55. The United States and the District

further reserve all legal and equitable remedies to address any imminent and

substantial endangerment to the public health or welfare or the environment arising at,

or posed by, Defendants' Facility, whether related to the violations addressed in this

Consent Decree or otherwise.

57. In any subsequent administrative or judicial proceeding initiated by the United States

or the District for injunctive relief, civil penalties, or other appropriate relief relating to

Consent Decree

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the Facility, Defendants shall not assert, and may not maintain, any defense or claim

based upon the principles of waiver, res judicata, collateral estoppel, issue preclusion,

claim preclusion, claim-splitting, or other defenses based upon any contention that the

claims raised by the United States or the District in the subsequent proceeding were or

should have been brought in the instant case, except with respect to claims that have

been specifically resolved pursuant to Paragraph 55 of this Section.

58. This Consent Decree is not a permit, or a modification of any permit, under any

federal, State, or local laws or regulations. Defendants are responsible for achieving

and maintaining complete compliance with all applicable federal, State, and local

laws, regulations, and permits; and Defendants' compliance with this Consent Decree

shall be no defense to any action commenced pursuant to any such laws, regulations,

or permits, except as set forth herein. The United States and the District do not, by

their consent to the entry of this Consent Decree, warrant or aver in any manner that

Defendants' compliance with any aspect of this Consent Decree will result in

compliance with provisions of the Act, 42 U.S.C. § 7401 et seq., or with any other

provisions of federal, State, or local laws, regulations, or permits.

59. This Consent Decree does not limit or affect the rights of Defendants or of the United

States or the District against any third parties, not party to this Consent Decree, nor

does it limit the rights of third parties, not party to this Consent Decree, against

Defendants, except as otherwise provided by law.

60. This Consent Decree shall not be construed to create rights in, or grant any cause of

action to, any third party not a Party to this Consent Decree.

XII. COSTS

61. The Parties shall bear their own costs of this action, including attorneys' fees, except

that the United States and the District shall be entitled to collect the costs (including

attorneys' fees) incurred in any action necessary to collect any portion of the civil

penalty or any stipulated penalties due but not paid by Defendants.

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XIII. NOTICES

62. Unless otherwise specified herein, whenever notifications, submissions, or

communications are required by this Consent Decree, they shall be made in writing

and addressed as follows:

To the United States:

Chief, Environmental Enforcement Section

Environment and Natural Resources Division

U.S. Department of Justice

Box 7611 Ben Franklin Station

Washington, D.C. 20044-7611

Re: DOJ No. 90-5-2-1-10136

and

Kara Christenson (ORC-2)

Office of Regional Counsel

U.S. Environmental Protection Agency, Region IX

75 Hawthorne Street

San Francisco, California 94105

To EPA:

Director, Enforcement Division (ENF-1)

U.S. Environmental Protection Agency, Region IX

75 Hawthorne Street

San Francisco, CA 94105

Attn: Cyntia Steiner, ENF-2-1

To the District:

District Counsel's Office

San Joaquin Valley Unified Air Pollution Control District

1990 E. Gettysburg Avenue

Fresno, CA 93726

and

Director of Compliance

San Joaquin Valley Unified Air Pollution Control District

1990 E. Gettysburg Avenue

Fresno, CA 93726

Consent Decree 28

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To Defendants:

Gregory A. Billhartz

Corporate Vice President, General Counsel and Secretary

Ralcorp Holdings, Inc.

800 Market Street

St. Louis, MO 63102-2750

Diedre J. Gray

Senior Vice President, General Counsel and Secretary

Post Holdings, Inc.

2503 South Hanley Road

St. Louis, MO 63144

With a copy to:

Steven J. Poplawski, Esq.

Bryan Cave, LLP

One Metropolitan Square

211 North Broadway, Suite 3600

St. Louis, MO 63102-2750

63. Any Party may, by written notice to the other Parties, change its designated notice

recipient or notice address provided above.

64. Notices submitted pursuant to this Section shall be deemed submitted upon mailing,

unless otherwise provided in this Consent Decree or by mutual agreement of the

Parties in writing.

XIV. EFFECTIVE DATE

65. The Effective Date of this Consent Decree shall be the date upon which this Consent

Decree is entered by the Court or a motion to enter the Consent Decree is granted,

whichever occurs first, as recorded on the Court's docket.

XV. RETENTION OF JURISDICTION

66. The Court shall retain jurisdiction over this case until termination of this Consent

Decree, for the purpose of resolving disputes arising under this Decree or entering

orders modifying this Decree, pursuant to Sections IX (Modification) and XVI

(Dispute Resolution), or effectuating or enforcing compliance with the terms of this

Decree.

Consent Decree 29

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XVI. MODIFICATION

67. The terms of this Consent Decree, including any attached appendices, may be

modified only by a subsequent written agreement signed by all the Parties. Where the

modification constitutes a material change to this Decree, it shall be effective only

upon approval by the Court.

68. Any disputes concerning modification of this Decree shall be resolved pursuant to

Section IX (Dispute Resolution) of this Decree, provided, however, that, instead of the

burden of proof provided by Paragraph 47, the Party seeking the modification bears

the burden of demonstrating that it is entitled to the requested modification in

accordance with Federal Rule of Civil Procedure 60(b).

XVII. TERMINATION

69. After Defendants have maintained continuous satisfactory compliance with this

Consent Decree for one year from the Effective date, have paid the civil penalty and

any accrued interest and stipulated penalties as required by this Consent Decree, and

have obtained a District operating permit that specifies a RTO Minimum Temperature

and an emission factor for calculation of VOC emissions, Defendants may serve upon

the United States and the District a Request for Termination, stating that Defendants

have satisfied those requirements, together with all necessary supporting

documentation.

70. Following receipt by the United States and the District of Defendants' Request for

Termination, the Parties shall confer informally concerning the Request and any

disagreement that the Parties may have as to whether Defendants have satisfactorily

complied with the requirements for termination of this Consent Decree. If the United

States, after consultation with the District, agrees that the Decree may be terminated,

the Parties shall submit, for the Court's approval, a joint stipulation terminating the

Decree.

71. If the United States, after consultation with the District, does not agree that the Decree

may be terminated, Defendants may invoke Dispute Resolution under Section IX of

Consent Decree

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this Decree. However, Defendants shall not seek Dispute Resolution of any dispute

regarding termination, under Paragraph 43 of Section IX, unti130 Days after service of

its Request for Termination.

XVIII. PUBLIC PARTICIPATION

72. This Consent Decree shall be lodged with the Court for a period of not less than 30

Days for public notice and comment in accordance with 28 C.F.R. § 50.7. The United

States reserves the right to withdraw or withhold its consent if the comments regarding

the Consent Decree disclose facts or considerations indicating that the Consent Decree

is inappropriate, improper, or inadequate. Defendants consent to entry of this Consent

Decree without further notice and agree not to withdraw from or oppose entry of this

Consent Decree by the Court or to challenge any provision of the Decree, unless the

United States has notified Defendants in writing that it no longer supports entry of the

Decree.

XIX. SIGNATORIES/SERVICE

73. Each undersigned representative of Defendants, the District and the Assistant Attorney

General for the Environment and Natural Resources Division of the Department of

Justice, certifies that he or she ~is fully authorized to enter into the terms and conditions

of this Consent Decree and to execute and legally bind the Party he or she represents

to this document.

74. This Consent Decree may be signed in counterparts, and its validity shall not be

challenged on that basis. Defendants agree to accept service of process by mail or

email with respect to all matters arising under or relating to this Consent Decree and to

waive the formal service requirements set forth in Rules 4 and 5 of the Federal Rules

of Civil Procedure and any applicable Local Rules of this Court including, but not

limited to, service of a summons. The Parties agree that Defendants need not file an

answer to the complaint in this action unless or until the Court expressly declines to

enter this Consent Decree.

Consent Decree 31

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XX. INTEGRATION

75. This Consent Decree constitutes the final, complete, and exclusive agreement and

understanding among the Parties with respect to the settlement embodied in the Decree

and supersedes all prior agreements and understandings, whether oral or written,

concerning the settlement embodied herein. Other than deliverables that are

subsequently submitted and approved pursuant to this Decree, no other document, nor

any representation, inducement, agreement, understanding, or promise, constitutes any

part of this Decree or the settlement it represents, nor shall it be used in construing the

terms of this Decree.

XXI. FINAL JUDGMENT

76. Upon approval and entry of this Consent Decree by the Court, this Consent

Decree shall constitute a final judgment of the Court as to the United States, the

District, and Defendants.

SO ORDERED.

Dated and entered this _day of ,

Consent Decree

UNITED STATES DISTRICT JUDGE

Eastern District of California

32

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WE HEREBY CONSENT to this Consent Decree, subject to the public notice and comment

provisions of 28 C.F.R. § 50.7:

FOR PLAINTIFF UNITED STATES OF AMERICA:

~ ~

DA E: ROBERT G. DREHER

Acting Assistant Attorney General

Environment and Natural Resources Division

U.S. Department of Justice

~Z~

DATE: L I JO AS

Senior Attorney

Environment and Natural Resources Division

U.S. Department of Justice

P.O. Box 7611

Washington, DC 20044-7611

Telephone: (202) 514-4080

lori.j onas@usdoj .gov

Consent Decree 33

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FOR PLAINTIFF L7NITED STATES OF AMERICA (continued):

`~ ~Z Z ,~~ ~~✓~-~ ~

D TE: J D BLUMENFELD

Regional Administrator

United States Environmental Protection Agency, Region IX

DATE: ROBERT MQYE

Acting Regional Counsel

United States Environmental Protection Agency, Region IX

CYNTHIA J. GILES

Assistant Administrator for Enforcement

and Compliance Assurance

United States Environmental Protection Agency

OF COUNSEL:

KARA CHRISTENSON

Senior Counsel

U.S. Environmental Protection Agency, Region IX

75 Hawthorne Street

San Francisco, California 94105

Consent Decree 34

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FOR PLAINTIFF SAN JOAQUIN VALLEY UNIFIED AIR POLLUTION CONTROL

DISTRICT:

DA~' ~~

CATHERI T. MOND

District Counsel

San Joaquin Valle nified Air Pollution Control District

~'2~•~3

DATE: SEYE ADREDIN

Executive Director

San Joaquin Valley Unified Air Pollution Control District

Consent Decree 35

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FOR DEFENDANT POST HOLDINGS, 1NC.

a~3

DATE: ~i ~q/ rC J. ra~~

~f

FOR DEFENDANT RALCORP HOLDINGS, 1NC.:

Consent Decree 36

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FOR DCFENDANT POST HOLDINGS, INC.

DATE:

FOR DEFENDANT RALCORP HOLDINGS, INC.:

~ ~~ r3

DATE:

Consent Decree 37

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ATTACHMENT A:

Procedure for Establishin~Operatin~ Pressure Ranges for STPD 10 and STPD 11

Defendant shall use the following procedure to establish the Operating Pressure Ranges

for STPD 10 Pressure Gauge and STPD 11 Pressure Gauge.

1. Defendant will certify that the Facility has not modified or altered the equipment or

operating conditions between the dates it conducted EPA Method ALT-20 testing and

the establishment of these Operating Pressure Ranges for STPD 10 and STPD 11

other than by installing the STPD 10 Pressure Gauge and STPD 11 Pressure Gauge.

2. Defendant will use the following procedure to establish Operating Pressure Ranges

for STPD 10 and 11:

a. Defendant will verify and document proper set up of ventilation ducting

feeding STPD 10.

b. Defendant will verify and document that STPD 10 ducts are properly

reinstalled after cleaning.

c. Defendant will open RTO blocking dampers so flow from the rotoclone for

STPD 10 is directed to the RTO.

i. Defendant will record static pressure from STPD 10 Pressure

Gauge. This reading will establish P1 as the first endpoint of the

Operating Pressure Range.

ii. Defendant will document the RTO duct volume control damper

position.

d. Defendant will move the RTO duct volume control damper for the STPD 10

rotoclone by opening damper one additional stop.

i. This will increase air flow from rotoclone to the RTO.

ii. Defendant will record the static pressure at the increased flow rate.

This reading will establish P2 as the second end point of the Operating

Consent Decree

Pressure Range.

38

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iii. Defendant will document the RTO duct volume control damper

position.

e. Defendant will establish the acceptable Operating Pressure Range as all points

between, and including, P 1 and P2 for STPD 10.

f. Defendant will repeat the procedure set forth in 2 a — e for STPD 11.

Consent Decree 39

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