# FEDERATED METALS
> **Judicial** · FY1989 · — · Final Order With Penalty
## Case
- **Activity ID:** `27098`
- **Case Number:** 05-1989-0037
- **Type:** Judicial
- **Lead:** EPA
- **Outcome:** Final Order With Penalty
- **Penalty assessed:** $675K
- **Cost recovery:** $0
- **Compliance action $:** —
- **Multimedia (multi-env):** N
## Defendants
- FEDERATED METALS (complaint) (settlement)
## Summary

THE FACILITY SELECTED THE LETTER OF CREDIT ALTERNATIVE AS  ITS MEANS OF PROVING ADEQUATE FINANCIAL ASSURANCE FOR CLO-   SURE.  WHILE THE FACILITY OBTAINED THE LETTER OF CREDIT IN   THE PROPER AMOUNT, IT FAILED TO TIMELY FILE THE PROOF WITH   THE STATE AS REGULATIONS REQUIRE AND TO UPDATE ITS CLOSURE   COST ESTIMATES.  THE PENALTY ASSESSED WAS $7550 AND THE PAR- TIES AGREED TO SETTLE THE CASE FOR $6000.  A DRAFT CAFO HAS  BEEN EXECUTED BY THE FACILITY.  A FULLY EXECUTED CAFO IS EX- PECTED TO BE FILED WITH THE ADMINISTRATIVE LAW JUDE BY MID-  FEBRUARY.                                                       IDENTITY OF DEFENDANT:  FEDERATED METALS CORP. (FMC), A   NEW YORK CORP. DOING BUSINESS AT 2230 INDIANAPOLIS' BLVD.,   WHITING, INDIANA.                                               LEGAL BASIS FOR PROPOSED ACTION:  SECT 3008 OF THE RE-    SOURCE CONSERVATION AND RECOVERY ACT OF 1976, AS AMENDED, 42 USC 6901 ER SEQ.                                                ALLEGED VIOLATIONS:  FMC HAS FAILED TO COMPLY WITH THE    CAFO ENTERED ON FEB. 1, 1989.  SPECIFICALLY, FMC HAS FAILED  TO DOCUMENT COMPLIANCE WITH INSURANCE AND FINANCIAL ASSU-    RANCE REGULATIONS.  IN ADDITION, FMC HAS VIOLATED LIABILITY  INSURANCE REQUIREMENTS NOT CONTAINED IN THE CAFO.               PROPOSED RELIEF:  THE RELIEF USEPA SEEKS IN THIS ACTION   IS THREEFOLD:  1) AN INJUNCTION REQUIRING FMC TO SUBMIT DOCU MENTATION OF COMPLIANCE WITH THE INDIANA REGULATIONS CITED   WITH THE CAFO;  2) COMPLIANCE WITH IND

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