Exhibit 10.1
UNITED STATES DISTRICT COURT
CENTRAL DISTRICT OF ILLINOIS
UNITED STATES OF AMERICA,
)
)
Plaintiff, and
)
)
STATE OF ILLINOIS,
)
)
Plaintiff-Intervenor,
)
Civil Action Number: 05-1395
)
v.
)
)
MGP INGREDIENTS OF ILLINOIS, INC.,
)
)
Defendant.
)
CONSENT DECREE
TABLE OF CONTENTS
I. [a06-9877_1ex10d1.htm#I_JurisdictionAndVenue_234721]
JURISDICTION AND VENUE [a06-9877_1ex10d1.htm#I_JurisdictionAndVenue_234721]
3
II. [a06-9877_1ex10d1.htm#Ii_Applicability_234731]
APPLICABILITY [a06-9877_1ex10d1.htm#Ii_Applicability_234731]
3
III. [a06-9877_1ex10d1.htm#Iii_FactualBackgroundAndApplicabl_234746]
FACTUAL BACKGROUND
[a06-9877_1ex10d1.htm#Iii_FactualBackgroundAndApplicabl_234746]
4
IV. [a06-9877_1ex10d1.htm#Iv_ComplianceProgramSummary_234800]
COMPLIANCE PROGRAM SUMMARY
[a06-9877_1ex10d1.htm#Iv_ComplianceProgramSummary_234800]
4
V. [a06-9877_1ex10d1.htm#V_ComplianceProgramRequirements_234815]
COMPLIANCE PROGRAM [a06-9877_1ex10d1.htm#V_ComplianceProgramRequirements_234815]
6
A. [a06-9877_1ex10d1.htm#A_InstallationOfControlsAndApplic_234843]
INSTALLATION OF CONTROLS
[a06-9877_1ex10d1.htm#A_InstallationOfControlsAndApplic_234843]
6
B. [a06-9877_1ex10d1.htm#B_PermittingAndModifications_234904]
PERMITTING AND MODIFICATIONS
[a06-9877_1ex10d1.htm#B_PermittingAndModifications_234904]
7
C. [a06-9877_1ex10d1.htm#C_EmissionLimits_234918]
EMISSION LIMITS [a06-9877_1ex10d1.htm#C_EmissionLimits_234918]
8
D. [a06-9877_1ex10d1.htm#D_DemonstrationOfCompliance_234930]
DEMONSTRATION OF COMPLIANCE
[a06-9877_1ex10d1.htm#D_DemonstrationOfCompliance_234930]
8
E. [a06-9877_1ex10d1.htm#E_RecordkeepingAndReportingRequir_234945]
RECORDKEEPING AND REPORTING
[a06-9877_1ex10d1.htm#E_RecordkeepingAndReportingRequir_234945]
9
VI. [a06-9877_1ex10d1.htm#Vi_CivilPenalty_235008]
CIVIL PENALTY [a06-9877_1ex10d1.htm#Vi_CivilPenalty_235008]
10
VII. [a06-9877_1ex10d1.htm#Vii_StipulatedPenalties_235025]
STIPULATED PENALTIES [a06-9877_1ex10d1.htm#Vii_StipulatedPenalties_235025]
11
VIII. [a06-9877_1ex10d1.htm#Viii_RightOfEntry_235155]
RIGHT OF ENTRY [a06-9877_1ex10d1.htm#Viii_RightOfEntry_235155]
13
IX. [a06-9877_1ex10d1.htm#Ix_ForceMajeure_235210]
FORCE MAJEURE [a06-9877_1ex10d1.htm#Ix_ForceMajeure_235210]
14
X. [a06-9877_1ex10d1.htm#X_DisputeResolution_235227]
DISPUTE RESOLUTION [a06-9877_1ex10d1.htm#X_DisputeResolution_235227]
17
XI. [a06-9877_1ex10d1.htm#Xi_GeneralProvisions_235243]
GENERAL PROVISIONS [a06-9877_1ex10d1.htm#Xi_GeneralProvisions_235243]
19
XII. [a06-9877_1ex10d1.htm#Xii_Termination_235309]
TERMINATION [a06-9877_1ex10d1.htm#Xii_Termination_235309]
23
i
CONSENT DECREE
WHEREAS, Plaintiff, the United States of America (hereinafter "Plaintiff' or
"the United States"), on behalf of the United States Environmental Protection
Agency (herein, "U.S. EPA"), has, simultaneously with lodging of this Consent
Decree, filed a Complaint alleging that Defendant, MGP Ingredients of Illinois,
Inc. ("MGP" or "Defendant") commenced construction of major modifications to a
major emitting facility in violation of the Prevention of Significant
Deterioration ("PSD") requirements at Part C of the Clean Air Act (the "Act"),
42 U.S.C. §§ 7470-7492, and the regulations promulgated thereunder at 40 C.F.R.
§ 52.21 (the "PSD Rules");
WHEREAS, Plaintiff further alleged that Defendant commenced construction of
major modifications to a major emitting facility and thereafter operated the
facility without first obtaining the appropriate preconstruction permits and
installing the appropriate air pollution control equipment required by 40 C.F.R.
§ 52.21 and the Illinois State Implementation Plan ("SIP") approved pursuant to
42 U.S.C. § 7410;
WHEREAS, Plaintiff further alleged that potential air emissions from the
Defendant's facility were underestimated by MGP for purposes of determining the
applicable permit requirements;
WHEREAS, the State of Illinois, ("Plaintiff-Intervenor" or "Illinois"), has,
simultaneously with lodging of this Consent Decree, filed a Complaint in
Intervention, alleging that MGP was and is in violation of PSD requirements and
the Illinois SIP, by failing to obtain the appropriate pre-construction permits
and state permits, and by failing to install appropriate pollution control
technology, in violation of applicable federal and state laws, including
Sections 9(b) and 9.1 of the Illinois Environmental Protection Act;
WHEREAS, MGP has operated a grain processing facility in Pekin, Illinois (the
Facility) since at least 1980;
WHEREAS, MGP has made various modifications to its grain processing facility,
including changes in 1988 and 1993, pursuant to permits 88010011 and 93080045,
respectively, issued by the Illinois Environmental Protection Agency ("IEPA"),
which resulted in significant increases in its production capacity;
WHEREAS, on June 3, 2002, the U.S. EPA met with representatives of the ethanol
plants in Illinois, including MGP, to discuss VOC testing and test results, VOC
emissions, and related compliance