Atwood residents filled the meeting room at the Warsaw Community Public Library Tuesday night for a public meeting with the Indiana Department of Environmental Management.
Bruce Palin, assistant commissioner with the office of land quality, announced IDEM had reached an agreed order with Nature's Fuel.
Atwood residents have spent the past two years making the case to the state, as well as local officials, that the facility has made residents sick, hurt property values and degraded air quality.
Nature's Fuel was set up as a research and development facility to take wood pellets and turn them into biofuels.
At previous Area Plan Commission and commissioners meetings, residents have complained the biochar from the facility, as well as the odor, has made them sick and even forced them out of their homes.
During Tuesday night's meeting, Palin announced Nature's Fuel agreed to shut down operations by Jan. 31.
They also agreed to shut down operations from noon Friday until 7 a.m. Monday and not run on federal holidays.
They also were required to pay a penalty for previous violations, which included dumping 3,000 gallons of oil at their facility.
The agreed order states that if Nature's Fuel hasn't shut down its facilities in Atwood by Jan. 31 it will be subject to a $10,000-per-day fine.
Despite the agreed order, Atwood residents met the news with skepticism.
The purpose of Tuesday night's meeting was to take comments about a new air permit that Nature's Fuel is seeking.
Attorney Kim Ferraro, who is representing four Atwood families at no charge, said that if Nature's Fuel is granted a new air permit that lasts for five years they could use that to fight the agreed order in court.
"They negotiated their power away" because Nature's Fuel heavily influenced what went into the agreed order, said Ferraro of IDEM. "They had the ability to shut (Nature's Fuel) down."
Palin said the air permit could be modified to line up with the agreed order.
Palin said Nature's Fuel has received a "near record number of complaints" to IDEM's complaint department.
During the meeting, residents displayed anger with the fact that Nature's Fuel will remain open for another six months.
"I'm not happy with how IDEM has handled this," said one resident. "This has not helped the people of Atwood."
Several residents asked that if Nature's Fuel has to pay penalties as well as do things like plant trees, why they can't test the water?
IDEM took that into consideration.
The permit also is subject to appeal after it is granted.
Those wishing to submit written comments can e-mail Brian Williams at bwilliams@idem.in.gov, by fax at 317-232-6749 or by mail to
IDEM, Office of Air Quality
MC 61-53 IGCN 1003
100 N. Senate Avenue
Indianapolis, IN 46204
IDEM asked that the comments include the permit number, 085-28516-00115.
After the comment period ends, IDEM will review all the comments then decide on Nature's Fuel's permit request.
There is no date as to when a decision will be made.