AQ_F_0900043_20110415_ENF_CPACover

NCDENR
North Carolina Department of Environment and Natural Resources
Division of Air Quality
Beverly Eaves Perdue Sheila C.Holman Dee Freeman
Governor Director Secretary
CERTIFIED MAIL RETURN RECEIPT REOUESTED
April 15, 2011
Mr. Darren Stephens, President
Elizabethtown Energy,LLC
2705 Bee Caves Rd, Suite 340
Austin, TX 78746
SUBJECT: Civil Penalty Assessment for Violation(s)
Permit Late Title V ACC
File No.: DAQ 2011-028
Violator: Elizabethtown Energy, LLC
County: Bladen
Facility ID: 0900043
Dear Mr. Stephens:
This letter transmits notice of civil penalty assessed against Elizabethtown Energy,LLC in the amount of
$2,000 and$171 investigative costs, for a total of$2,171.
Enclosed is a copy of the assessment document explaining this penalty. This action was taken under the
authority vested in me by the delegation pursuant to North Carolina General Statutes (NCGS) 143-215.114A(d).
Any new or continuing violation(s)may be the subject of a new enforcement action, including additional penalty.
You must take one of the three actions outlined below within thirty (30)days from the date of receipt of
this letter. Please be advised that if you fail to exercise one of the following options within thirty(30)days,
you will lose your right to appeal or contest this case and your case will be forwarded to the Attorney
General's Office for collection.
1. Submit payment of the penalty:
Payment should be made directly to the order of the North Carolina Department of Environment and Natural
Resources (NCDENR). When submitting payment,please reference your DAQ case number on your check to
insure proper posting. Please do not include the attached waiver form when submitting payment. Payment of
the penalty will not foreclose further enforcement action for any continuing or new violation(s). Please submit
payment to the attention of:
Fayetteville Regional Office-Division of Air Quality
Syslel Building,225 Green Street,Suite 714,Fayetteville,North Carolina 28301-5094 UtlC
Phone:[phone]\FAX:[phone]\Internet:www.ncair.org/ North Cm-ol1IIct
An Equal Opportunity\Affirmative Action Employer vVatu ll

Mr. Stephens
April 15,2011
Page 2
Enforcement Group-Payment
Department of Environment and Natural Resources
Division of Air Quality
1641 Mail Service Center
Raleigh, NC 27699-1641
Please be advised, that it is the policy for NCDENR to charge and collect a processing fee of$25.00 for
checks on which payment has been refused by the bank because of insufficient funds or because of an
invalid bank account.
OR
2. Submit a written request for remission including a detailed justification for such request:
Please be aware that a request for remission is limited to consideration of the five factors listed below as they
may relate to the reasonableness of the amount of the civil penalty assessed. Requesting remission is not the proper
procedure for contesting whether the violation(s) occurred or the accuracy of the factual statements contained in the
civil penalty assessment document. Because a remission request forecloses the option of an administrative hearing,
such a request must be accompanied by a waiver of your right to an administrative hearing and a stipulation and
agreement that no factual or legal issues are in dispute. Please prepare a detailed statement that establishes why you
believe civil penalty should be remitted, and submit it to the address listed below. In determining whether a
remission.request will be approved,the following factors shall be considered:
(1) whether one or more of the civil penalty assessment factors in NCGS 14313-282.1(b) were
wrongfully applied to the detriment of the violator;
(2) whether the violator promptly abated continuing environmental damage resulting from the
violation;
(3) whether the violation was inadvertent or a result of an accident;
(4) whether the violator has been assessed civil penalties for any previous violations; or
(5) whether payment of the civil penalty will prevent payment for the remaining necessary
remedial actions.
Please note that all evidence presented in support of your request for remission must be submitted in writing.
If you chose this option,do not send in payment at this time. The Director of the Division of Air Quality
(DAQ) will review your evidence and inform you of his/her decision in the matter of your remission request.
The response will provide details regarding the case status, directions for payment, and provision for further
appeal of the penalty to the Environmental Management Commission's Committee on Civil Penalty Remissions
(Committee). Please be advised that the Committee cannot consider information that was not part of the
original remission request considered by the Director. Therefore, it is very important that you prepare a
complete and thorough statement in support of your request for remission.
In order to request remission, you must complete and submit the enclosed "Request for Remission of Civil
Penalties, Waiver of Right to an Administrative Hearing, and Stipulation of Facts"form within thirty (30)days
of receipt of this notice. The DAQ also requests that you complete and submit the enclosed "Justification for
Remission Request." Both forms should be submitted to the following address:
Enforcement Group-Remission
Department of Environment and Natural Resources
Division of Air Quality
1641 Mail Service Center
Raleigh, North Carolina 27699-1641

Mr. Stephens
Page 3
OR
3. File a petition for an administrative hearing with the Office of Administrative Hearings:
If you wish to contest any statement in the attached assessment document you must file a petition for an
administrative hearing. You may obtain the petition form from the Office of Administrative Hearings (OAH).
You must file the petition with the OAH within thirty (30)days of receipt of this notice. A petition is
considered filed when it is received in the Office of Administrative Hearings during normal office hours. The
OAH accepts filings Monday through Friday between the hours of 8:00 a.m. and 5:00 p.m., except for official
state holidays. The petition may be filed by facsimile(fax) or electronic mail by an attached file(with
restrictions) -provided the signed original, one (1) copy and a filing fee(if a filing fee is required by NCGS
§150B-23.2) is received in the OAH within seven (7) business days following the faxed or electronic
transmission. You should contact the OAH with all questions regarding the filing fee and/or the details of the
filing process. The mailing address, telephone number, and facsimile number for the OAH are as follows:
Office of Administrative Hearings
6714 Mail Service Center
Raleigh, NC 27699-6714
Telephone: [phone] Facsimile: [phone]
A copy of the petition must also be served on NCDENR as follows:
Mary Penny Thompson, General Counsel
North Carolina Department of Environment and Natural Resources
1601 Mail Service Center
Raleigh, North Carolina 27699-1601
Please indicate the DAQ case number,as found on Page 1 of this letter,on your petition to OAH.
Failure to exercise one of the options above within thirty (30)days of receipt of this letter, as evidenced by
an internal date/time received stamp (not a postmark), will result in this matter being referred to the Attorney
General's Office for collection of the penalty through a civil action. Please be advised that additional penalties
may be assessed if the violations that are the subject of this action have not been corrected.
If you have any questions concerning this matter, please contact Betty Gatano at [phone].
r erely
teven F Vozzo
Regional Air Quality Supervisor
Enclosures: Assessment Document
cc: Enforcement File(DAQ 2011-028)

STATE OF NORTH CAROLINA NORTH CAROLINA
ENVIRONMENTAL MANAGEMENT
COUNTY OF BLADEN COMMISSION
IN THE MATTER OF: ) CASE NUMBER 2011-028
ELIZABETHTOWN ENERGY,LLC )
FOR VIOLATIONS OF: ) CIVIL PENALTY ASSESSMENT
AIR PERMIT STIPULATION, GENERAL )
CONDITIONS, SECTION 3.P, "COMPLIANCE )
CERTIFICATION" )
Acting pursuant to North Carolina General Statutes (G.S.) 143-215.114A, I, Steven Vozzo,Regional
Supervisor, Fayetteville Regional Office, Division of Air Quality (DAQ), make the following:
1. FINDINGS OF FACT:
A. Elizabethtown Energy, LLC is a power generation plant operating in Elizabethtown, Bladen
County, North Carolina. Elizabethtown Energy, LLC was issued Air Permit No. 05455T15
on 18 May 2010, with an expiration date of 31 March 2013.
B. General Condition 3.P of the subject permit states:
The Permittee shall submit to the DAQ and the EPA(Air and EPCRA Enforcement Branch,EPA,
Region 4, 61 Forsyth Sheet,Atlanta,GA 30303)postmarked on or before March 1 a compliance
certification(for the preceding calendar year)by a responsible official with all federally-enforceable
terms and conditions in the permit,including emissions limitations,standards,or work practices. It
shall be the responsibility of the current owner to submit a compliance certification for the entire
year regardless of who owned the facility during the year. The compliance certification shall
comply with additional requirements as may be specified under Sections 114(a)(3)or 504(b)of the
Federal Clean Air Act. The compliance certification shall specify:
1. the identification of each term or condition of the permit that is the basis of the
certification;
2. the compliance status(with the terms and conditions of the permit for the period covered
by the certification);
3. whether compliance was continuous or intermittent;and
4. the method(s) used for determining the compliance status of the source during the
certification period.
C. The Annual Compliance Certification (ACC) was due on 1 March 2011. The ACC was
submitted on 9 March 2011.
D. On 9 March 2011, a Notice of Violation/Notice of Recommendation of Enforcement
(NOV/NRE) was issued for failure to submit the ACC by the due date.
E. Mr. Michael Wood, facility contact for Elizabethtown Energy, LLC visited the Fayetteville

Elizabethtown Energy, LLC
DAQ Case No. 2011-028
Page 2
Regional Office (FRO) to discuss the NOWNRE. The root cause of the late ACC appears to
be a communication disconnect with the facility's corporate headquarters in Texas.
F. Air Quality Compliance History:
• On 11 March 2010, a NOV was issued for submitting an incomplete ACC.
• On 25 November 2008, a NOV issued for failure to submit an annual report(NOx
budget).
• On 10 May 2006, a NOV was issued for submitting an incomplete ACC.
• On 16 November 2005, a NOV was issued for failure to submit ACC to EPA.
G. The costs of investigation or inspection in this matter totaled$171.
Based upon the above Findings of Fact, I make the following:
II. CONCLUSIONS OF LAW:
A. Elizabethtown Energy, LLC was in violation of Air Permit No. 05455T15, General
Condition 3.P, for failure to submit the required report by the reporting deadline as
specified in Findings of Fact "C."
B. G.S. 143-215.114A provides that a civil penalty of not more than twenty-five thousand
dollars per violation may be assessed against a person who violates or fails to act in
accordance with the terms, conditions, or requirements of a permit required by NCGS
143-215.108 or who violates any regulation adopted by the Environmental Management
Commission.
C. G.S. 143-215.3(a)(9) provides that the costs of any investigation or inspection may be
assessed against a person who violates or fails to act in accordance with the terms,
conditions, or requirements of a permit required by G.S. 143-215.108 or who violates any
regulation adopted by the Environmental Management Commission.
Based upon the above Findings of Fact and Conclusions of Law, I make the following:
III. DECISION:
Elizabethtown Energy, LLC is hereby assessed a civil penalty of:
$ 7_00 0 for one(1) violation Air Permit No. 05455T15, General Condition 3.P,for
late submittal of the Annual Compliance Certification.
$ 2-000 TOTAL CIVIL PENALTY, which is 8 percent of the maximum
penalty authorized by G.S. 143-215.114A.
$ 171 Investigation cost
$ 21 1 TOTAL AMOUNT DUE

Elizabethtown Energy, LLC
DAQ Case No. 2011-028
Page 3
Pursuant to G.S. 143-215.114A in determining the amount of the penalty, I considered the factors listed in
G.S. 143B-282.1(b) and 15A NCAC 2J .0106, which are the following:
1) The degree and extent of harm to the natural resources of the State, to the public health, or to
private property resulting from the violation(s);
2) The duration and gravity of the violation(s);
3) The effect on ground or surface water quantity or quality or on air quality;
4) The cost of rectifying the damage;
5) The amount of money saved by noncompliance;
6) Whether the violation was committed willfully or intentionally;
7) The prior record of the violator in complying or failing to comply with programs over which the
Environmental Management Commission has regulatory authority; and
8) The cost to the State of the enforcement pro res.
11
Nate teven Vozzo,Regional S p visor
Fayetteville Regional Office
Division of Air Quality

STATE OF NORTH CAROLINA NORTH CAROLINA
ENVIRONMENTAL MANAGEMENT
COMMISSION
County of Bladen FILE NO. DAQ 2011-028
IN THE MATTER OF ASSESSMENT ) REQUEST FOR REMISSION OF CIVIL
OF CIVIL PENALTIES AGAINST ) PENALTIES; WAIVER OF RIGHT TO
Elizabethtown Energy, LLC ) AN ADMINISTRATIVE HEARING
AND STIPULATION OF FACTS
Having been assessed civil penalties totaling $2,171 for violation(s) of:
Permit Late Title V ACC
as set forth in the assessment document of the Supervisor of the Fayetteville Regional Office,
Division of Air Quality dated April 15, 2011,the undersigned, desiring to seek remission of the
civil penalties, does hereby waive right to an administrative hearing in the above-stated matter
and does stipulate that the facts are as alleged in the assessment document. The undersigned
further understands that all evidence presented in support of remission of this civil penalty must
be submitted to the Director of the Division of Air Quality within thirty(30) days of receipt of
the notice of assessment. No new evidence in support of a remission request will be allowed
after thirty (30) days from the receipt of the notice of assessment.
This the day of , 20_.
Signature
By
Print Name
Address
Telephone ( 1

JUSTIFICATION FOR REMISSION REOUEST
DAQ Case Number: 2011-028
County: Bladen
Violator: Elizabethtown Energy, LLC
Facility ID: 0900043
Amount Assessed: $2,171 ($2,000 in penalty and $171 in investigative costs)
Please use this form when requesting remission of this civil penalty. You must also complete
the "Request For Remission Waiver of Right to an Administrative Hearing, and Stipluation of
Facts" form to request remission of this civil penalty. You should attach any documents that
you believe support your request and are necessary for the Director to consider in determining
your request for remission. Please be aware that a request for remission is limited to
consideration of the five factors listed below as they may relate to the reasonableness of the
amount of the civil penalty assessed. Requesting remission is not the proper procedure for
contesting whether the violation(s) occurred or the accuracy of any of the factual statements
contained in the civil penalty assessment document. Pursuant to N.C.G.S. 143B-282.1(c),
remission of a civil penalty may be granted only when one or more of the following five factors
applies. Please check each factor that you believe applies to your case and provide a detailed
explanation, including copies of supporting documents, as to why the factor applies (attach
additional pages as needed).
(a) one or more of the civil penalty assessment factors in N.C.G.S 143B-282.1(b)
were wrongfully pplied to the detriment of the petitioner (the assessment factors
are listed in the civil penalty assessment document);
(b) the violator promptly abated continuing environmental damage resulting from the
violation (i.e., explain the steps that you took to correct the violation andprevent
future occurrences);
(c) the violation was inadvertent or a result of an accident (i.e., explain why the
violation was unavoidable or something you could not prevent or prepare for);
(d) the violator had not been assessed civil penalties for any previous violations;
(e) payment of the civil penalty will prevent payment for the remaining necessary
remedial actions (i.e., explain how payment of the civil penalty will prevent you
from performing the activities necessary to achieve compliance).
EXPLANATION: