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HomeMy WebLinkAboutHorizon30CPAPkgSignedtv12.10.25 JOSH STEIN Governor D.REID WILSON Secretary WILLIAM E.TOBY VINSON,JR NORTH CAROLINA Director Environmental Quality *December 10,2025 Certified Mail *(Certified#: 7022 0410 0003 1110 0042) Return Receipt Requested Horizon 30 LLC ATTN: Sean E Chipman 512 West Hamilton Street, Suite 1800 Allentown, PA 18101 Certified Mail *(Certified#: 7022 0410 0003 1110 0035) Return Receipt Requested Horizon 30 LLC(USPS) c/o Registered Agents, 4030 Wake Forest Rd. Suite 349 Raleigh,NC 27609 (Via FedEx) Brent Fernandes 3639 North Kilroy Road Turlock, CA 95382 Via Email: Billlane@parkerpoe; Steveweber@parkerpoe; Brent@horizonopps.com; schipman78@gmail.com RE: Civil Penalty Assessment for Violations of the Mining Act of 1971,N.C. General Statute 74-50(a). Mitchell County LQM 2025-001 Dear Mr. Chipman: Pursuant to North Carolina Administrative Code 15A 05F .0105 et seq. and the above-referenced Act,this letter is notice of a civil penalty assessed by the Department of Environmental Quality(DEQ),in the amount of$460,000.00. The civil penalty assessment document is attached. Within thirty(30)days from the date of receipt of this letter,you must do one of the following: (1) Pay the civil penalty assessment;or (2) File a written petition for a contested case under N.C.G.S. 150B-23. Pursuant to N.C. General Statute 150B-22, informal settlement negotiations may be initiated at any time. To negotiate a settlement of this assessment,please contact Carolyn McLain,Assistant Attorney General,who may be reached by telephone at(919)716-6600. Settlement offers do not extend the 30-day deadline for payment or filing of a contested case petition. Additional information about your options is provided below, 10" North Carolina Department of Environmental Quality I Division of Energy.Mineral and Land Resources 512 North Salisbury Street 1 1612 Mail Service Center I Raleigh,North Carolina 2 769 9-1612 pn2D N �� 919.707.9200 Certified Mail Mr.Chipman,Mr.Fernandes Page 2 PAYMENT To pay the penalty, send your payment by check or money order made payable to the North Carolina Department of Environmental Quality(DEQ)or to: Carolyn McLain,Assistant Attorney General, North Carolina Department of Justice, Environmental Division, 9001 Mail Service Center, Raleigh,North Carolina 27699-9001. The Attorney General's Office will represent DEQ in the resolution of this civil penalty assessment. NOTICE REGARDING THE RIGHT TO CONTEST A CIVIL PENALTY Right of Persons Aggrieved to File a Contested Case: Pursuant to NCGS 74-61 and NCGS 150B, Article 3, a party or person aggrieved by the issuance of a civil penalty may file a contested case by filing a petition under NCGS 15OB-23 in the Office of Administrative Hearings within 30 days after the Department makes the decision. General Filing Instructions: A petition for contested case hearing must be in the form of a written petition, conforming to NCGS 15013-23, and filed with the Office of Administrative Hearings, 1711 New Hope Church Road, Raleigh NC, 27609, along with a fee in an amount provided in NCGS 15013-23.2. A petition for contested case hearing form may be obtained upon request from the Office of Administrative Hearings or on its website at https://www.oah.nc.gov/hearings-division/filing/hearing-forms. Additional specific instructions for filing a petition are set forth at 26 NCAC Chapter 03. Service Instructions: A party filing a contested case is required to serve a copy of the petition, by any means authorized under 26 NCAC 03 .0102,on the process agent for the Department of Environmental Quality: Daniel S.Hirschman, General Counsel North Carolina Department of Environmental Quality 1601 Mail Service Center Raleigh,North Carolina 27699-1601 If the party filing the petition is a person aggrieved other than the permittee or permit applicant,the party must also serve the permittee in accordance with NCGS 15013-23(a). Be aware that other rules or laws may apply to the filing of a petition for a contested case. Additional information is available at https://www.oall.nc.gov/liearin!zs-division hearing-process/filing-contested-case. Please contact the Office of Administrative Hearings at(984) 236-1850 or oah.postmaster(u?oah.nc.gov with all questions regarding the filing fee and/or the details of the filing process. Certified Mail Mr. Chipman,Mr.Fernandes Page 3 Payment of this penalty will not foreclose further enforcement action against you for any new or continuing violation(s). If the violations which resulted in this penalty assessment are continuing in nature, DEQ reserves the right to assess additional civil penalties in the future or take o er enforcement action against you. Your attention to this matter is appreciated. Sin erely, / illiam . Vinson,Jr., PE Director Division of Energy, Mineral, and Land Resources Department of Environmental Quality TV/ap Enclosures: Civil Penalty Assessment cc: Mr.Adam Parr,PE,Deputy Director Mr.Brad Cole, PE, Section Chief,Regional Operations Ms. Carolyn McLain, Esq.,Attorney General's Office Mr. Stan Aiken,PE,Engineering Supervisor,Ashville Regional Office STATE OF NORTH CAROLINA DEPARTMENT OF ENVIRONMENTAL QUALITY COUNTY OF MITCHELL LQS 2025-001 IN THE MATTER OF: ) HORIZON 30 LLC ) CIVIL PENALTY ASSESSMENT FOR VIOLATIONS OF: ) THE MINING ACT OF 1971 ) Acting pursuant to North Carolina General. Statutes (N.C.G.S.) § 143B-290 and North Carolina Mining Commission (Commission) Rule Title 15A North Carolina Administrative Code (NCAC) 05F .0103, and the authority delegated to me by the Sectary of the Department of Environmental Quality, I, William E. Vinson, Jr., P.E., Director, Division of Energy, Mineral, and Land Resources, make the following: I. FINDINGS OF FACT A. The subject property is located off Highway 197 near the town of Poplar, North Carolina, Mitchell County. The project is known as the Carter Quarry. B. The owner of record is Horizon 30 LLC, a corporation duly registered to do business and doing business in the State of North Carolina. C. In November 2024, Brent Fernandes, as representative of Horizon 30 LLC contacted DEMLR by phone to discuss the permitting requirements for an anticipated mining operation in North Carolina. A preapplication meeting was scheduled for December 4, 2024. D. On December 4, 2024, Brent Fernandes and Sean Chipman, also representing Horizon 30 LLC, had a virtual preapplication meeting with DEMLR staff on a potential mine permit application. DEMLR explained the requirement of the Mining Act and when a permit would be required. E. On December 13, 2024,John Gefferth called the DEMLR mining program and stated they were working with Brent Fernandes on a property in Mitchell County that was going to be a mine to supply CSX material. The caller had general questions about what was needed to be provided in an environmental study for a mine permit application. F. On January 9, 2025, DEMLR was contacted by email by John Gefferth, who identified himself as a consultant working on behalf of Horizon 30 LLC, who stated he was assisting with permitting and engineering. G. On January 27,2025,DWR provided information to DEMLR that they had received information about a potential illegal mining operation in Mitchell County. H. On February 6, 2025, DEMLR inspected the above-referenced site and determined the activity being conducted would require a mining permit. I. On or about February 10, 2024, DEMLR staff communicated by phone with Brent Fernandes that operations at the Mine Site needed to cease and that a mining permit was required. J. On Wednesday,March 6,2025,DEMLR was contacted by phone by Brent Fernandes. He stated that the current work was only for exploration. He indicated that they were under contract with CSX who wants granite stone and everything in the front of the property was sandstone. They needed to continue to move to the back of the property to see if there was any granite in the back. They were working on the final stages of getting a permit application completed. K. On Thursday, March 7, 2025, DEMLR sent a Notice of Regulatory Requirement (NORR) to Horizon 30 LLC informing them that a mining permit would be required for the operation of the mining site pursuant to the North Carolina Mining Act. L. On Wednesday,March 12, 2025, Sean Chipman contacted DEMLR by phone and told DEMLR staff that an application would be sent via overnight mail to be received March 13 or March 14. M. On Thursday, March 13, 2025, Sean Chipman contacted DEMLR by phone and stated that the submission would not be coming until Monday,March 17,2025,or possibly Tuesday,March 18, 2025,but that the application was in final review with their attorneys. Additionally,the engineer working on their package was out of country and would be returning Sunday, March 16, 2025. They expected him to review the application prior to mailing the package N. On Wednesday,March 19,2025,Sean Chipman emailed DEMLR to provide an update that their engineer Wayne King was looking over the application and making a few changes and would need a few more days. They planned to have it completed over the next weekend and would plan to submit the following week. O. On Monday, March 24, 2025, Sean Chipman emailed DEMLR to provide an update that they were completing the narrative and would submit the following day. P. On Tuesday, March 25, 2025, Sean Chipman emailed DEMLR to provide an update that everything was on track and they were sending adjoining landowner notices out in the mail that day. Q. On Thursday, March 27, 2025, Sean Chipman emailed DEMLR to let them know that digital copies of the application materials would be sent later that afternoon and the application would be mailed the next day. R. On Wednesday, April 2, 2025, Sean Chipman and DEMLR shared email communications regarding a hyperlink conveying the digital copies of the application materials. S. On Thursday, April 3, 2025, Sean Chipman sent an email to DEMLR stating that application hard copies are on the way. T. On Thursday, April 10, 2025, DEMLR emailed Sean Chipman and requested the tracking information for the application that was allegedly sent the week prior. Sean Chipman responded with a photo of the package still in his position with the shipping label showing that it was scheduled for shipping April 10,2025, for overnight delivery to be delivered April 11,2025. U. On April 11, 2025, an incomplete application was received by the Mining Program for this operation. The application did not include the required fees. V. On April 21, 2025, an email was sent to Sean Chipman to let him know the application was incomplete and did not include the required fees. Sean Chipman responded that he would send payment. W. On April 23, 2025, authorized personnel of DEMLR conducted a follow-up inspection and observed that the affected area of the unpermitted mining operation had increased to 10 acres in size. DEMLR personnel instructed Horizon 30 LLC to cease mining operations prior to obtaining a mining permit. X. On April 24, 2025, Sean Chipman sent an email stating that payment would be provided to DEMLR on Monday, April 28, 2025. Y. On May 6,2025,DEMLR sent Horizon 30 LLC a Notice of Violation(NOV)for mining without a permit. The NOV specifically required them to cease all mining activities without a permit and to either submit a complete mining permit application or to restore the site. Sean Chipman responded that the email had been received and that the application fee would be sent on May 6, 2025, or the next day May 7,2025. Z. A complete application was not received until May 16, 2025, when the permit application fee was received. According to USPS tracking,the fee was sent on May 8,2025. AA. On May 27,2025,DEMLR personnel conducted a follow-up inspection of the mining operation. The inspection results revealed that the violations outlined in the NOV remained uncorrected and that since the inspection on April 23, 2025, additional mining had occurred at the site. During this site inspection, after DEMLR staff told Brent Fernandes to cease mining activities, Brent Fernandes responded to DEMLR staff saying that he told Adam Parr to go ahead and fine him $5,000 per day. BB. On June 5, 2025, DEMLR sent Horizon 30 LLC a Notice of Continuing Violation (NOCV) for mining without a permit.The NOCV specifically required them to cease all mining activities and to either submit a reclamation bond if the mining permit application was approved or to restore the site. CC. On August 6, 2025, DEMLR personnel conducted a follow-up inspection of the mining operation. The inspection results revealed that the violations outlined in the NOV remained uncorrected and that since inspection on May 27, 2025, additional mining had occurred at the site. DD. On July 21, 2025, the North Carolina Department of Justice filed a Complaint and Motion for Preliminary and Permanent Injunction on behalf of DEMLR against Horizon 30 LLC for violations of the Mining Act. (State of N.C. ex rel. D. Reid Wilson v. Horizon 30 LLC, 25CV001176-600) EE. On August 13, 2025,Judge Theodore McEntire issued a Preliminary Injunction against Horizon 30 LLC. The Preliminary Injunction required Horizon 30 LLC to immediately cease mining operations, immediately cease transfer of materials off-site, and within 30 days of execution submit a reclamation plan to the Mining Program pursuant to N.C.G.S. § 74-53. FF. The land-disturbing activity was conducted for commercial purposes and covered approximately 30 acres as of the inspection on August 6, 2025. II. CONCLUSIONS OF LAW A. A civil penalty may be assessed against Horizon 30 LLC, pursuant to North Carolina General Statute § 74-64(a)(1)(a) for the violations committed on the subject property. B. From May 6,2025,through August 6,2025,violations of one or more of the requirements of the Mining Act of 1971 or the rules adopted thereunder existed on the subject property as follows: N.C.G.S § 74-50(a) No operator shall engage in mining without having first obtained from the Department an operating permit that covers the affected land and that has not been terminated, revoked, suspended for the period in question, or otherwise become invalid... III. DECISIONS A. Pursuant to N.C.G.S. § 74-64(a)(1)(a) and 15A NCAC 0517 .0103, and the authority delegated to me by the Sectary of the Department of Environmental Quality, I, William E. Vinson, Jr, Director of the Division of Energy, Mineral, and Land Resources do hereby assess a civil penalty against Horizon 30 LLC, in the amount of$5,000.00 per day for Mining Without a Mining Permit, from May 6, 2025 to August 6, 2025, the days of this violation. The total penalty amount is calculated at$460,000.00. B. In determining the amount of this penalty, I have considered the criteria in N.C.G.S. § 74- 64(a)(1)(c). C. I hereby put Horizon 30 LLC, on notice that I reserve the right to initiate further enforcement action for any violations occurring on or after August 7, 2025. December 10, 2025 Date illi 4Vinson, WDireyt Division of Energy, Mineral, anLvayfd Resources Land Quality Section