Attorney General Curtis Hill announced today a multi-million-dollar agreement to address alleged violations of environmental regulations at an East Chicago energy plant that produces coke, a solid fuel made by heating coal. The alleged violators are SunCoke Energy Inc.; its subsidiary Indiana Harbor Coke Company; and Cokenergy.

Under the terms of the agreement, the energy companies will pay $5 million in civil penalties – to be divided evenly between the State of Indiana and the U.S. federal government. Moreover, the agreement includes a lead abatement project at Indiana schools, day-care centers and/or other buildings where owners are unable to afford lead abatement work. Priority will be given to facilities with young children or pregnant women. Cokenergy will implement this project and must spend at least $250,000 in qualified costs for the project.

“We fight every day to protect the safety of Hoosiers and their families,” Attorney General Hill said. “This agreement goes a long way to protect Hoosiers and their families in Northwest Indiana and the East Chicago community.”

Involved in the negotiations and settlement were the Office of the Indiana Attorney General, Indiana Department of Environmental Management, U.S. Justice Department and U.S. Environmental Protection Agency. The companies allegedly violated state environmental regulations in addition to the federal Clean Air Act. The alleged violations involve such actions as the illegal emission of waste gases, lead, sulfur dioxide, and particulate matter; opacity exceedances; departures from good air pollution control practices; and various failures in monitoring, measuring, recording, and reporting of operational parameters and performance important to compliance with the air pollution control laws.

Such emissions are the result of leaking coke ovens and excessive bypass venting of hot coking gases directly into the atmosphere. The pollutants leaked have been associated with acid rain and respiratory illnesses, including decreased lung function, aggravated asthma and premature death in people with heart or lung disease. Further, the EPA has stated that lead poisoning is the top environmental health threat in the United States for children ages 6 and younger.

Other requirements of the agreement include rebuilding of coke ovens to fix leaks and more stringent monitoring and testing requirements going forward. When fully implemented, the actions required by the agreement will reduce emissions of sulfur dioxide, particulate matter, lead and volatile organic compounds.

“Throughout negotiations, we have appreciated the collaboration of our federal partners toward achieving this positive result,” Attorney General Hill said.

The Consent Decree, lodged in the U.S. District Court for the Northern District of Indiana, is subject to a 30-day public comment period and approval by the federal court. It is attached to this release and also available on the U.S. Justice Department website at www.usdoj.gov/enrd/Consent_Decrees.html.