&EPA
     United States
     Environmental Protection
     Agency
  For more information
  The following EPA team members
  can be contacted for questions,
  comments or more information about
  the NIPSCO and lakeshore
  environmental situation:

  Michelle Majack (technical
  questions)
  EPA Remedial Project Manager
  312-886-4253
  maiack.michelle(g),epa.gov

  Jennifer Dodds (ecological
  questions)
  EPA Ecological Risk Assessor
  312-886-1484
  dodds .j ennifer@epa. gov

  Rafael P. Gonzalez (general
  questions)
  EPA Public Affairs Specialist
  312-886-0269
  gonzalez.rafaelp@epa.gov

  Region 5 address:
  EPA Region 5
  77 W. Jackson Blvd.
  Chicago, IL 60604

  Region 5 toll-free:
  800-621-8431, 8:30 a.m. - 4:30 p.m.,
  weekdays
Update:  Environmental
Investigation  at Power  Plant
                                      Northern Indiana Public Service Co. Site
                                      Chesterton, Indiana
                                                February 2010
An ongoing environmental investigation at Northern Indiana Public Service
Co.'s (NIPSCO) Bailly Generating Station is entering a new phase focusing
on pollution releases from the power plant into a nearby national park and
Lake Michigan. Under a 2005 legal order between NIPSCO and U.S.
Environmental Protection Agency Region 5, the utility company is required to
investigate whether contamination from the Bailly site is affecting soil,
underground water and the lake. This fact sheet is an update on what the
investigation has found so far and what actions will happen in the future.

The investigation is important because the Bailly Generating Station sits next
to the environmentally important and unique Indiana Dunes National
Lakeshore (IDNL) and Lake Michigan.

Focus on three areas
EPA is currently directing NIPSCO to focus the investigation on three main
issues:  1. Areas on-site that may need to be cleaned up; 2. Lake Michigan;
and 3. Indiana Dunes National Lakeshore.

On-Site: The Bailly facility (see map P. 2) covers 320 acres in an L-shaped
property bordered to the north by the lake and to the northeast by the national
lakeshore. The plant is coal-fired and supplies electricity to the northern half
of Indiana. Some on-site sections have already been cleaned up by NIPSCO
including contaminated soil at seven locations where, for instance, old tanks
had leaked. At EPA's  request, NIPSCO has recently submitted a plan to
perform a large excavation where the facility formerly stored fly ash directly
on the ground. Fly ash is a  coal combustion byproduct. The waste contained
metals that soaked into the  soil and ground water (underground water) of the
facility. Removing the contaminated soil will remove the source of metals
found in the ground water.  Earth excavated in this project will be backfilled
with clean soil. Other  on-site areas that may need to be cleaned up include
two former landfills, which will be discussed later in this fact sheet.

Lake Michigan: EPA recently requested ground water and Lake Michigan
samples be collected because an operational section of the plant sits next to
the lake and metals have been found in on-site ground water above screening
levels. Samples close to the lake have told experts that the metals are not
entering Lake Michigan with the ground water but staying in the soil on-site.
Samples were also taken from the beach east of NIPSCO in front of IDNL.
The national lakeshore is a protected habitat for the endangered Piping Plover,
a small shorebird. Sampling results from the beach will be used to assess
possible risk to the bird. For more information about the Piping Plover, you
can visit http://www.fws.gov/midwest/endangered/pipingplover/index.html.

(text continued on P'. 2)

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Indiana Dunes National Lakeshore: IDNL continues to
be sampled and surveyed by NIPSCO at the direction of
EPA and national lakeshore officials. Samples have been
collected from ground water, soil, surface water and plant
life. IDNL represents one of the most diverse and unique
plant and wildlife habitats in the U.S. In addition, the
15,000-acre lakeshore contains unique geographical
features such as Cowles Bog  (see text box P. 3).

EPA's goal is to protect this precious resource from
pollution. As a national treasure, the park belongs to all
of us, therefore, community input will be solicited for the
best ideas to preserve the shoreland even while research
is being conducted and cleanup plans discussed between
EPA and NIPSCO.

Some of that research includes surveys which are
currently under way to evaluate the health of the plant
and amphibian life. The first phase of the investigation
showed metals have penetrated the ground water, surface
water and plant life within IDNL. EPA has been working
with IDNL officials to develop the next assessment phase
in order to define the health and environmental risks the
metals may pose to humans, wildlife and vegetation. The
sources of IDNL metals appear to be two former landfills
on the Bailly property.

Two former landfills
The two landfills were not engineered disposal areas but
more like simple dump sites where fly and bottom ash
was disposed of. The multi-acre areas have long been
grown over and now look like vacant fields. NIPSCO is
no longer using these landfills and have been properly
disposing of ash offsite for many years.

The landfill ash is underground, so as  rain percolates
through the soil it comes into contact with the ash before
entering the ground water below. As water seeps through
the ash some of it picks up  metals which form a "plume."
A plume is a mass of contaminated ground water, or
underground water. At this location, ground water moves
naturally towards Lake Michigan, and where ground
water is shallow it breeches the surface to become surface
water and form wetlands. A plume of aluminum and
boron is extending north off the Bailly Station property
into the national lakeshore. Some good news though ~
monitoring wells show the  plume has not reached Lake
Michigan and doesn't appear to be moving.  EPA has
requested NIPSCO evaluate alternatives to stop the
metals from leaving the landfills even while the
investigation phase continues.
Next steps
As mentioned earlier, NIPSCO has submitted a plan for a
large excavation on the western portion of the facility.
Soil contamination in this area cannot exceed screening
levels designed to protect workers. However, the ground
water appears to have been affected by elevated
concentrations of boron and selenium. The ground water
is being screened against a more stringent pollution limit
designed to protect the Great Lakes. Because of the threat
to Lake Michigan, EPA requested a more conservative
evaluation of the soil pollution that considers the
potential for the metal contaminants to move into the
ground water and eventually the lake. EPA believes
controlling the source of the ground water contamination
by removing the tainted soil will protect the ground water
and Lake Michigan in the future.

EPA will also be performing a risk assessment to
determine if Bailly pollutants would harm the Piping
Plover if it were to use the beach (see picture P. 3).
Results could be known this summer.

Throughout this process EPA and other federal and state
agencies will be seeking public input on the best ways to
proceed. Protecting the lakeshore, while ensuring
reliable electrical power to your community, will require
the cooperation of all stakeholders.

  Above: This map shows the boundaries of the Bailly
  Generating Station and Indiana Dunes National Lakeshore.
  The circular shaded area represents contaminated
  groundwater, or underground water.  The dashed lines which
  extend north to Lake Michigan are some of the many hiking
  trails within the national lakeshore. The on-site former landfills
  are also labeled.

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A Word from the National Lakeshore...

Within the park, just northeast of the Bailly Station
property, is a particularly sensitive ecosystem of
national significance. The Cowles Bog Wetland
Complex (CBWC) is so unique in its plant and
animal life that it was designated as  a National
Natural Landmark by Congress in 1965. In fact, it
was where Henry Chandler Cowles, considered the
"father" of modern ecology, did his  exploration and
studies.

Through the 1970's and early '80s, the CBWC
underwent significant decline in some of its plant life
due to the adjacent industrial development and
introduction of non-native plants. Studies from
2002-2004, however, demonstrated exceptional
wetland characteristics which will help in further
restoring this important ecosystem.  It is clear that
CBWC can be restored to near its original state.

National Park Service
                                              ::
Top: The migratory Piping Plover breeds in only
three locations in North America including the Great
Lakes shoreline. EPA 's investigation has included
groundwater samples along the lake to determine if
the plover could be exposed to pollution. Although the
plover has not been known to visit this exact beach,
EPA will evaluate the risk as if it has, just to be safe.
Preserving the habitat is critical to the species health.
Public Participation
Although this fact sheet is not associated with
any formal public participation period, the
attached comment sheet is provided for your
questions or comments. EPA believes the
community is an important stakeholder in the
process of cleaning up facilities, such as the
Bailly Station property.

Public participation at this facility in particular is
so important because of its location next to a
national park.  For that reason, EPA has divided
the work at the Bailly Station. While longer-term
studies continue within the park, EPA is
simultaneously working to cleanup the active
portion of the site.  This is being done in order to
provide the public with an opportunity to
formally comment twice; once for the proposed
cleanup on the active portion of the site and again
once the proposed cleanup for the inactive
portion (including any work which may take
place with IDNL in the park). EPA believes that
by doing so, it not only provides the community
with adequate opportunities to participate, but it
also moves some important, yet straight-forward,
cleanup along faster.  The unique ecosystems
within the park require more study and  careful
consideration of all ramifications of a cleanup.

Currently, EPA is reviewing risk assessments  for
the active portion of the facility.  Once that
review is complete, a proposed cleanup will be
shared with the community for your thoughts and
comments. Prior to making final cleanup plans,
EPA considers the public comments received,
responds to them formally and revises the
cleanup as  appropriate. A similar process will
take place for the inactive portion of the facility,
such as the historic landfills, and the park.

EPA values your input and is looking forward to
serving your community by taking appropriate
action at the Bailly Station property.

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