# CONSENT DECREE TERM SHEET

## Selwick Plating / River Protection Authority

This Term Sheet sets forth the final, agreed terms that will be incorporated into a proposed Consent Decree for submission to the court after public comment.

---

## 1. Definitions

- **“Effective Date”** means the date the court enters the Consent Decree after the required public-comment period.
- **“Day”** means calendar day. If any deadline falls on a weekend or court holiday, the deadline is due on the next business day.
- **“Permit”** means Selwick Plating’s existing discharge permit issued by the River Protection Authority, including all copper and pH effluent limits.
- **“Compliance Point”** means the discharge point(s) designated in the Permit for copper and pH monitoring, or, if none, the outfall(s) at which the disclosed exceedances occurred.
- **“Responsible Officer”** means the senior officer of Selwick Plating with responsibility for environmental compliance at the facility, identified to the Authority in writing within five days after the Effective Date.

---

## 2. Civil Penalty

### A. Gravity Calculation

The initial gravity is calculated from the agreed violation-day breakdown:

| Category | Days | Rate / Cap | Gravity |
|---|---:|---:|---:|
| Copper-only exceedances | 14 | $18,000/day | $252,000 |
| pH-only exceedances | 2 | $6,000/day | $12,000 |
| Days with both copper and pH exceedances | 4 | $20,000/day cap | $80,000 |
| **Total Gravity** | | | **$344,000** |

Each calendar day is counted once under the daily cap; the 4 combined days are charged at $20,000, not $24,000.

### B. Cooperation Reduction

The Authority agrees to a 15 percent cooperation reduction from gravity:

- 15% × $344,000 = **$51,600**
- Gravity after cooperation reduction = **$292,400**

### C. Economic Benefit

Selwick’s verified economic benefit from delayed treatment upgrades is **$180,000**. Because no written inability-to-pay finding has been made, that amount is added in full and is not reduced.

### D. Final Civil Penalty

$292,400 + $180,000 = **$472,400**

### E. Payment Timing

Selwick shall pay the full **$472,400** within **30 days after the Effective Date**, by wire transfer to an account designated in writing by the Authority. The payment transmittal must identify the Responsible Officer and the case name.

---

## 3. Injunctive Relief — Ion-Exchange Polishing System

### A. Required Final Control

Selwick shall acquire, install, and make operational an **ion-exchange polishing system** to treat wastewater from the production lines that contributed to the disclosed copper and pH exceedances. The system shall be:

- sized to treat the facility’s maximum documented design flow;
- designed to achieve the copper and pH effluent limits in the Permit at the Compliance Point(s);
- equipped with appropriate pH monitoring, flow control, and sample taps; and
- operated and maintained in a manner reasonably necessary to maintain compliance.

No plant-wide pipe replacement or unrelated plant modernization is required.

### B. Milestones

| Milestone | Deadline |
|---|---|
| Execute contract and issue purchase order for the ion-exchange system | Within 10 days after Effective Date |
| Submit final design package, process flow diagram, and construction schedule to the Authority | Within 30 days after Effective Date |
| Complete installation of the ion-exchange system | Within 90 days after Effective Date |
| Complete startup and performance testing; achieve operational milestone | Within 120 days after Effective Date |

### C. Operational Milestone

The ion-exchange system is deemed operational when it:

- is fully installed;
- is operating at the required design flow;
- has completed a continuous 72-hour performance test; and
- has produced effluent meeting applicable copper and pH Permit limits throughout that test.

The Day 120 third-party verifier must observe or otherwise document the performance test, and the results must be reported as part of the Startup Report.

### D. Startup Report

By Day 130, Selwick shall submit a Startup Report, certified by the Responsible Officer, documenting completion of the ion-exchange system, the performance test, and the verifier’s findings. If force majeure extends the 120-day deadline, the Startup Report is due within 10 days after the end of the extension.

---

## 4. Interim Sampling, Exceedance Response, and Production Controls

### A. Weekly Sampling

For the first **12 months after the Effective Date**, Selwick shall collect at least one effluent sample per calendar week at each Compliance Point and analyze it for **total copper and pH**.

This weekly sampling requirement is not perpetual. The Authority may reduce sampling frequency in writing after the Day 120 verification report is accepted.

### B. Immediate Notice of Exceedances

If any sample or monitoring indicates a copper or pH exceedance, Selwick shall:

1. notify the Authority immediately, and in no event later than 24 hours after discovery, by telephone and email; and
2. submit a written notice within 48 hours describing the cause, duration, and corrective actions.

### C. Production Controls

Upon any exceedance, Selwick shall:

- identify the production line(s) contributing to the exceedance;
- reduce throughput from those line(s) by at least 50 percent, or idle them if necessary;
- conduct daily effluent sampling at the affected Compliance Point;
- continue reduced production until two consecutive daily samples, taken at least 24 hours apart, are within all applicable copper and pH Permit limits; and
- include all exceedance response actions in the next monthly compliance report.

---

## 5. Reporting and Responsible Officer

### A. Monthly Compliance Reports

By the 15th day after each calendar month, Selwick shall submit to the Authority a compliance report covering the previous month. Each report shall include:

- all weekly and daily sampling results;
- any exceedances and response actions taken;
- construction and startup status of the ion-exchange system;
- verifier reports and any corrective actions;
- production-control actions; and
- any other information required to demonstrate compliance with this Decree.

### B. Certification

Each report, notice, and payment transmittal shall identify the Responsible Officer and be certified by that officer as true, accurate, and complete based on information known to that officer after reasonable inquiry.

---

## 6. Third-Party Verification

### A. Retention of Verifier

Within 15 days after the Effective Date, Selwick shall retain, at its expense, an independent third-party engineer approved by the Authority to verify the design, construction, startup, and operational status of the ion-exchange system.

### B. Day 60 Verification

By Day 60, the verifier shall inspect the design and construction work. By Day 65, the verifier shall submit a written report to both parties stating whether the ion-exchange system is on schedule to meet the 120-day operational milestone and identifying any deficiencies.

Selwick shall correct any deficiencies identified and notify the Authority within 10 days after the verifier’s report.

### C. Day 120 Verification

By Day 120, the verifier shall observe the startup/performance test. By Day 130, the verifier shall submit a written report verifying whether the ion-exchange system is operational and capable of meeting the applicable copper and pH Permit limits. The report shall include testing data and any recommended corrective actions.

---

## 7. Stipulated Penalties

The following stipulated penalties are the exclusive stipulated-penalty schedule in this Decree.

### A. Missed Report

| Period | Penalty |
|---|---|
| Days 1 through 10 after a required report is late | $1,000 per day |
| Day 11 and later until the report is submitted | $3,000 per day |

### B. Missed Construction Milestone

| Period | Penalty |
|---|---|
| Days 1 through 15 after a construction milestone is missed | $4,000 per day |
| Day 16 and later until the milestone is completed | $10,000 per day |

### C. New Copper or pH Exceedance

For any new copper or pH exceedance after the Effective Date:

- **$8,000 per exceedance day** for the first three exceedance days in any rolling 60-day period; and
- **$16,000 per exceedance day** for the fourth and subsequent exceedance days in the same rolling 60-day period.

If both copper and pH are exceeded on the same calendar day, that day counts as one exceedance day for stipulated-penalty purposes.

### D. General

Stipulated penalties begin to accrue on the date the violation occurs and continue until cured. Stipulated penalties are payable within 30 days after written demand, subject to any force-majeure extension allowed under Section 8. The Authority retains all legal remedies to collect stipulated penalties and to seek injunctive relief for continuing noncompliance.

---

## 8. Force Majeure

### A. Standard

A delay in meeting a deadline under this Decree may be excused only if Selwick proves that the delay was caused by an event beyond Selwick’s reasonable control.

### B. Conditions

To receive an extension, Selwick must:

1. give the Authority written notice within **five days** after Selwick knew or should have known of the event;
2. describe the event, its expected duration, and the measures being taken to mitigate it;
3. mitigate the delay diligently; and
4. prove that the event caused the delay and that the delay could not have been avoided by reasonable advance planning.

The extension is limited to the number of days actually caused by the event.

### C. Exclusions

The following are **not** force majeure:

- increased costs;
- contractor scheduling that could reasonably have been planned;
- ordinary equipment failure;
- failure to obtain financing; or
- market conditions.

---

## 9. Preservation of Access and Enforcement Rights

### A. Access

Selwick shall allow the Authority and its authorized representatives reasonable access to the facility during normal business hours, and in emergency circumstances at any time, to:

- inspect the ion-exchange system and interim controls;
- inspect, photograph, and copy records related to compliance;
- collect samples; and
- verify any reports submitted under this Decree.

### B. Record Preservation

Selwick shall preserve all sampling data, chain-of-custody records, laboratory reports, calibration and maintenance records, and compliance reports relevant to this Decree for at least five years after the Effective Date.

### C. Enforcement Rights Preserved

The Authority retains all enforcement rights not expressly released in Section 10, including:

- claims for violations arising after the Effective Date;
- claims for unknown or undisclosed violations;
- claims based on future noncompliance;
- enforcement of this Decree; and
- all criminal claims.

---

## 10. Nonadmission and Civil Release

### A. Nonadmission

Selwick admits only the following:

- the court has jurisdiction over this matter;
- the monitoring data described in the proposed Decree accurately reflect the reported sample results; and
- this Decree is valid and enforceable as a settlement.

Selwick does not admit any disputed legal conclusions, liability, or any violation of law for any purpose other than this settlement.

### B. Civil Release

Conditioned on Selwick’s payment in full of the civil penalty set forth in Section 2, the Authority releases Selwick from civil claims for the disclosed copper and pH exceedances that occurred before the Effective Date, specifically the 18 copper exceedance days and 6 pH exceedance days identified in Section 2, including the 4 days on which both occurred.

This release does not apply to:

- unknown or undisclosed violations;
- violations arising after the Effective Date;
- future noncompliance;
- criminal liability;
- fraud, misrepresentation, or concealment; or
- claims unrelated to the disclosed exceedances.

---

## 11. Public Comment and Court Approval

### A. Public Comment

The proposed Consent Decree will be filed with the court and made available for public notice and comment as required by applicable law.

### B. Court Approval

After the comment period, the Authority shall request court approval and entry of the Consent Decree. Selwick shall not oppose entry of the Decree in the form consistent with this Term Sheet.

### C. Effective Date

The Decree becomes effective on the Effective Date, and all deadlines run from that date.

### D. Court Jurisdiction

The court shall retain jurisdiction over the parties and this Decree for purposes of interpretation, enforcement, and modification.

---

**SELWICK PLATING**  
By: ________________________________  
Name: ________________________________  
Title: ________________________________  
Date: ________________________________  

**RIVER PROTECTION AUTHORITY**  
By: ________________________________  
Name: ________________________________  
Title: ________________________________  
Date: ________________________________