Acuity Specialty Products Group Inc.

Acuity Specialty Products Group Inc. Acuity Specialty Products Group Inc.

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IHIconstruction on improvements to the Seaboard Facility Wastewater Treatment Plant in early2003 and concluded this work in December 2003, investing more than $Llmillion in the project.Since that time Acuity has invested an additional $300,000 in the wastewater treatment plant.Acuity also instituted procedures to prevent inadequately treated wastewater from bemgdischarged to the City of Atlanta sewer and reinforced existing housekeeping and wasteminimization procedures to reduce the amount of wastewater generated by the manufacturingareas at the Seaboard Facility.R. Acuity began an internal investigation which uncovered a number of discrepancies inthe monthly self-monitoring reports. Acuity voluntarily disclosed 19 unreported phosphorusviolations to the United States Department of Justice and the City of Atlanta and four additionalphosphorus discrepancies and some anomalies in the way flow rates were reported on the selfmonitoringreports. Additional discrepanCies tn the self-monitoring reports have also been notedto the Department of Justice covering the time period of 1993-1997.S. On or about December 23, 2003, ASP entered into a Consent Order with the Crty ofAtlanta, Department of Watershed Management, Office of Environmental Compliance, whichamong other things , resolved severa1 self-reported and City-measured exceedances of the TotalPhosphorous limits contained in the Permit. Acuity paid $225,000 in settlement of the matter tothe City of Atlanta and agreed to install a "clear well" in the wastewater pre-treatment plant atthe Seaboard Facility with provisions for solids removal and allowance of visual observation andsample collection.-6 -

T. Acuity re-evaluated its existing compliance program. As a part of thls process, Acuityanalyzed virtually every facet of its compliance program, including the use of outside consultantsand auditors. A3 a result, a new envtronmental consulting firm, Environmental ResourcesManagement ("ERM'') was engaged to provide an independent and "fresh look" at Acuity's entireenvironmental management system, which included new, comprehensive audits of allmanufacturing facilities completed in 2004. Since April 2005, ERM audits of ASP facilitieshave demonstrated that all facilities are in substantJ.al comphance.U. Among the enhancements implemented to prevent a recurrence of such permitproblems include independent auditors now periodically examine the underlying sample data toensure that the facility is not violating any of its environmental permits and that the reports sentto regulatory agencies are correct. In additton, at the Seaboard Facility, two different indtvidualsreceive copies of the independent lab's data and verify that the self-monitoring reports areaccurate and complete .V. A new Vice President of Compliance ("VPC") was hlred by the parent company mFebruary 2004 to design and facilitate the implementation of a corporate-wtde environmentalprogram. ASP has hired a new Environmental Compliance Officer {"ECO") for ASP and a newFacility Environmental Coordinator ("EC") for the Seaboard Facility. There are also a number ofArea Environmental Coordinators who assist the Faetlity EC with compliance duties at eachfacility.W. Acuity increased environmental training for all employees, tncludmg a two-dayenvironmental conference for all managers and facility environmental coordinators.-7-

IHIconstruction on improvements to the Seaboard Facility Wastewater Treatment Plant in early2003 and concluded this work in December 2003, investing more than $Llmillion in the project.Since that time <strong>Acuity</strong> has invested an additional $300,000 in the wastewater treatment plant.<strong>Acuity</strong> also instituted procedures to prevent inadequately treated wastewater from bemgdischarged to the City of Atlanta sewer and reinforced existing housekeeping and wasteminimization procedures to reduce the amount of wastewater generated by the manufacturingareas at the Seaboard Facility.R. <strong>Acuity</strong> began an internal investigation which uncovered a number of discrepancies inthe monthly self-monitoring reports. <strong>Acuity</strong> voluntarily disclosed 19 unreported phosphorusviolations to the United States Department of Justice and the City of Atlanta and four additionalphosphorus discrepancies and some anomalies in the way flow rates were reported on the selfmonitoringreports. Additional discrepanCies tn the self-monitoring reports have also been notedto the Department of Justice covering the time period of 1993-1997.S. On or about December 23, 2003, ASP entered into a Consent Order with the Crty ofAtlanta, Department of Watershed Management, Office of Environmental Compliance, whichamong other things , resolved severa1 self-reported and City-measured exceedances of the TotalPhosphorous limits contained in the Permit. <strong>Acuity</strong> paid $225,000 in settlement of the matter tothe City of Atlanta and agreed to install a "clear well" in the wastewater pre-treatment plant atthe Seaboard Facility with provisions for solids removal and allowance of visual observation andsample collection.-6 -

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