WQ0002702_Regional Office Historical File Pre 2018 (10)

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State of North Carolina
Department of Justice Reply to:
Rol' IX)OI'LR Stormie D. Forte
NrrORNEY GENERAL PO Box 629 Environmental Division
Raleigh, North Carolina . Tel [phone]
27602 Fax[phone]
[e-mail]
January 24, 2008
CERTIFIED MAIL: 7002 3150 0000 1277 5431
RETURN RECEIPT REQUESTED
Mr. Randall F. Andrews
Alchem, Incorporated
2042 Buie Philadelphus Road
Red Springs, North Carolina 28377
CERTIFIED MAIL: 7002 3150 0000 1277 6650
RETURN RECEIPT REQUESTED
Mr. Randall F. Andrews
Alchem, Incorporated
8135 Red Road
Rockwell, North Carolina 28138
Re: Alchem, Inc. v. NC DENR Division of Water Quality
Office of Administrative Hearings
File Nos. 07 EHR 0439 and 07 EHR 0177
Dear Mr. Andrews:
p �C [E.
JAN 2 8 2008
N J LJEWI MRO
DWQ - f",q+�ifer Protection
We entered into a Settlement Agreement (hereinafter "agreement") in this matter on
November 27; 2007. Pursuant to the terms of the agreement, the civil penalty of $10,677.61
would be settled, conditioned upon your organization paying $9,000.00. Further, a payment plan
of $1000.00 per month for nine (9) months was established. Your first payment was due on
December 28, 2007.
As of today, my office has not received any payments from you. Please send your
December and January payments to my office immediately. If I do not received the payments
within 10 days of your receipt of this letter, I will have no choice but to pursue collection of the
entire amount of the civil penalty originally assessed ($10,677.61).

d m L E D
STATE OF NORTH CAROLINA IN THE OFFICE OF
N01 NOV 21 P 4: IV,,"STRATIVE HEARINGS
COUNTY OF ROBES ON 07 EHR 0439
07 EHR 0177
OFFICE OF
ALCHEM, INC., r`... "`j ! S I R AT I V E
]Petitioner, )
)
V. )
SETTLEMENT AGREEMENT AND
NORTH CAROLINA DEPARTMENT OF WITHDRAWAL OF PETITION
ENVIRONMENT AND NATURAL )
RESOURCES, DIVISION OF WATER )
QUALITY, )
Respondent. )
The North Carolina Department of Environment and Natural Resources (hereinafter
c
`Respondent) and Petitioner, Alchem, Inc., (hereinafter`Petition0), hereby enter into this
Settlement Agreement (hereinafter"Agreement) in order to amicably resolve matters in
controversy as they relate to a civil penalty assessment and permit requirements. This matter
arose out of the°,assessment of civil penalties and costs totaling ten thousand six hundred
seventy-seven dollars and sixty-one cents ($10, 677.61) which includes six hundred seventy-
seven dollars and sixty-one cents ($677.61) in enforcement costs, imposed upon Petitioner on
February 20, 2007 for alleged violations of North Carolina General Statutes § 143-215.1 et seq
and Non -Discharge Permit WQ0016338. This settlement Agreement also addresses and covers
challenges to Alchem permit WQ0002702.
Without any hearing of fact or law in the above -styled matters, Respondent and the
Petitioner have reached the following settlement agreement in this matter:
nFC 1 3 2007 D
rqC DENR
- Acwifer

1, Petitioner will adhere to the following conditions:
a. Within 30 days of the execution of this Agreement, Petitioner will
immediately create two (2) feet of freeboard space in all storage lagoons.
Additional .bauxite residuals must be disposed of in a manner consistent
with Water Quality General Statutes and the relevant rules promulgated
thereunder or applicable Solid Waste Statutes and the relevant rules
promulgated thereunder '(it is anticipated' that" the bauxite in' the first
lagoon will be disposed of off site and the residuals from other lagoons
can be disposed of on site after cleaning and in accordance with the terms
of this agreement);
b. Petitioner will refrain from placing any bauxite residuals for fill in the
berm area until construction and repairs to the berm and stormwater
retention pond below that area are complete;
.c. Petitioner will complete construction and repairs to berm and stormwater
—_ retention pond on or'before October 30, 2007, with site work monitored by
a licensed professional engineer to ensure proper construction and with
notification to Mooresville Regional Office of DWQ upon completion;
d. Petitioner shall inspect and repair all three storage lagoons on site by June
1, 2008, with site work monitored, tested and -certified by a licensed
professional engineer to ensure proper construction. In order to meet this
requirement, the Petitioner will be allowed to set upa temporary mixer on
site for the purpose of combining the residuals with a chenucal agent that
-2-

will bring them into compliance with appropriate pH levels, which will.be
removed once the storage lagoons have been repaired and the Respondent
has determined that the residuals are leaving the wash system and reaching
the storage lagoons and berm areas at the appropriate pH levels;
e. On or before March 1, 2008, the Petitioner will submit to the Mooresville
Regional Office of DWQ a site assessment prepared by a licensed
professional engineer. The site assessment should include a site map, a
land survey that delineates current fill and set backs from residential and
commercial properties, operational plan including projected estimate of
site life;
r;
A
f. On or before June 1, 2008, the Petitioner will install sasrpling ports -in the
pipes between the wash system and the storage lagoons. Additionally,
Petitioner will provide sampling data to the Mooresville Regional Office
of DWQ that the bauxite residuals being transferred from the wash system
to the mixer and/or storage lagoons and eventually to the berm fill area,
have achieved the prescribed pH level; and
g. Petitioner may seek a permit modification to address condition II(5)(a)
(400-foot. buffer zone) after a concurrent site inspection with DWQ staff
and a licensed professional engineer retained by Petitioner.
2. Petitioner shall pay Respondent nine thousand dollars ($9,000.00), (hereinafter
`Settlement Amount), which includes eight thousand three hundred twenty-two dollars and thirty-
nine cents ($8,322.39) for the civil penalty and six hundred seventy-seven dollars and sixty-one
-3-

.4 1
cents ($677.61) for investigative costs. The Settlement Amount shall be made in nine (9) equal
payments of one thousand dollars ($1,000.00) due on the 1st day of every month. The first
payment will be due within thirty (30) days of the execution of this Agreement.
3. The payments shall be by check made payable to the`North Carolina Department
of Environment and Natural Resources'or ta`DENR'at the following address:
Stormie D. Forte, Esq.
Attorney General's Office
Environmental Division
9001 Mail Service Center
Raleigh, NC 27699-9001
4. The breach of any condition of Paragraphs one (1), or two (2) by Petitioner will
render due and payable the entire amount of the civil penalty assessment, including investigative
costs i.e., ten thousand six hundred seventy-seven dollars and sixty-one cents ($10, 677.61). Any
payments made by Petitioner prior to any breach, will be subtracted from the original amount of
the civil penalty assessment for purposes of collection.
5. :Petitioner and Respondent expressly stipulate and acknowledge that, by entering
into this Agreement, Petitioner neither admits nor denies the allegations contained in the
Inspection Reports, Notices of Violation, Notices of Additional and/or Continuing Violations,
Findings and Decisions or Assessment of Civil Penalties. However, upon a breach of paragraph
one (1) or two (2) of this Agreement, by Petitioner, the sole issue in any action by Respondent is
to collect the Entire amount of the civil penalty assessment including investigative costs i.e., ten
thousand six hundred seventy-seven dollars and sixty-one cents ($10, 677.6I) in accordance with
the terms of paragraph four (4) above and will be limited to the Petitionei's compliance with the
terms of this Agreement. Additionally, for the purposes of future violations of the Water Quality
-4-

Statutes and the rules promulgated thereunder, the violations that are the subject of the Notice of
Violation and Civil Penalty Assessment for this matter will be used to document the Petitioner's
prior record.
6. Respondent agrees to accept a payment in the amount of nine thousand dollars
($9,000.00), in complete satisfaction of the civil penalty assessment dated February 20, 2007,
subject to the terms of this Agreement.
7. Nothing in this Agreement shall restrict any right of Respondent to inspect or take
any enforcement action against Petitioner for any new, subsequent, or future violations of the
Water Quality Statutes and the relevant rules promulgated thereunder, occurring outside of the
February 20, 2007 civil penalty assessment. Similarly, nothing in this Agreement shall restrict
•w
the right of Petitioner to contest a new or subsequent enforcement action arising outside of the
February 20, 2007 civil penalty assessment.
8. Respondent and Petitioner agree that, for purposes of any future bankruptcy
proceeding, this Agreement is not intended as, nor shall it be deemed to constitute, a novation of
any claims asserted by Respondent against Petitioner, Nothing in this Agreement releases any
nondischargeability claims that may be asserted by Respondent in any bankruptcy proceeding,
and nothing in this Agreement shall be deemed a waiver of Respondenfs right to rely on the
nature of any claim or debt released in this Agreement to show that the claim or debt is
nondischargeable.
9. This Agreement shall be binding upon the parties and is entered into knowingly,
intelligently, and voluntarily.
10. Signatures hereto via email are as binding as original signatures.
52

-ED
STATE OF NORTH CAROLINA
COUNTY OF ROBIESON ?t1,91 NOV 21 P 4: 15
OFFICE OF
ALCHEM,INC., )(VE
Petitioner, )
V. )
NORTH CAROLINA DEPA;R.' , rNT OF }
ENVIRONMENT AND NATURAL }
RESOURCES, DIVISION OF WATER }
QUALITY, )
Respondent. )
IN THE OFFICE OF .
ADMINISTRATIVE HEARINGS
07 EHR 0439
07 EHR 0177
SETTLEMENT AGMEMENT AND
V rI TMRAWAL OF PETITION
The North Carolinw.De' partment of Environment and Natural Resources (hereinafter
'Respondent) and Petitioner, Alcheni, Inc., Oiereinafter'Petitionet), hereby enter into this
Settlement Agreement (hereinafter"Agreement) in order to amicably resolve matters in
controversy as they relate to a civil penalty assessment and permit requirements. This matter
arose out of the. assessment of civil penalties and costs totaling ten thousand six hundred
seventy-seven dollars and sbcty-one cents ($I0, 677.61) which includes six hundred seventy-
seven dollars and sixty-one cents ($677.61) in enforcement costs, imposed upon Petitioner on.
February 20, 2007 for alleged violations of North Carolina General Statutes § 143-2I5.1 of seq
and Non -Discharge Permit WQ0016338. This settlement Agreement also addresses and covers
challenges to Alchem permit WQ0002702.
Withput any hearing of fact or law in the above -styled matters, Respondent and the
Pctitioner have reached the following settlement agreement in this matter:

1. Petitioner will adhere to the following conditions:
a.;iYt:dit5r«fe execution of this Agreement. Petitioner will
immediately create fxe-eba�ard ace in all storage lagoons.
Additional bauxite residuals must be disposed of in a manner consistent
with Water Quality General Statutes and the relevant rules promulgated
thereunder or applicable Solid Waste Statutes and the relevant males
proinlalgared thereunder '{it is anticipated' that the b. ruxfie in' the first
lagoon -will be disposed of off site and the residuals from other lagoons
can be disposed of oii site alter cleaning and in accordance with the terns
of this agreement);
b. Petitioner will refi-ain from placing any bauxite residfals for fill in the,
berm area until construction and repairs to the berm and stormwater
retention pond below that area are complete;
:c. Petitioner will complete construction and repairs to berm and stormwater
retention pond on or before October 30, 2007, with site work monitored by
-------------
a licensed professional engineer to ensure proper construction and with
notification to Mooresville Regional Office of DWQ upon completion;
dnepccl�aridpasall�tlzrett�ag 1goo�ns�on�site3ayJune
iB tsq �xx :-I site work monitored, tested and certified by a licensed
Professional engineer to croure proper construction. In order to meet this
requirement, the Petitioner will be allowed to set up tee oc rrrie . n
site for the purpose of c Wing
eesauls�"wilfa a, clenaical agent that

t��i�ll bran ther�a � • :arrz lisrrcc °:-appr�t�ate� v ls, Which will be
removed once the storage lagoons have been repaired and the Respondent
has determined that the residuals are leaving the wash system and reaching
the storage lagoons and berm areas at the appropriate PH levels;
e. On or before March 1, 2008, the Petitioner will submit to the Mooresville
Regional Office of DWQ a site assessment prepared by a licensed
professional engineer. The site assessment should include a site map, a
land survey that delineates current fill and set backs from residential and
commercial properties, operational plan including projected estimate of
i
site life;
RA
f On or Before June 1, 2008, the Petitioner wi
I
Pipes between the w^i I, erzlsn "r89 Additionally,
Petitioner will Provide sampling data to the Mooresville Regional Office
of DWQ ghat the bauxite residuals being transfewed from the wash system
to the mixer and/or storage lagoons and eventually to the berrn fill area,
have achieves to rest bed H lei°el and
9. Petitioner may seek a perneit modification to address condition 11 5 a
(400-foot buffer, zone) after a concurrent site inspection with DWQ staff
and a licensed professional engineer retained by Petitioner.
2. petitioner shall pay Despondent rune thousand dollars ($9,000.00), (hereinafter
`Settlement Amount), which includes eight thousand three hundred twenty-two dollars_andthirty-
rune cents (S8,322.39) for the civil penalty and six hundred seventy-seven dollars and sixty-one
-3-

f=I��ED
STATE OF NORTH CAROLINA
COUNTY OF ROBESON ?0-91 NOV 21 P 4- 15,
OFFICE OF
ALCHEM, INC., S T t? A31 VE
Petitioner, )
V. )
NORTH CAROLINA DEPART&MNT OF j
ENVIRONMENT AND NATURAL . )
RESOURCES, DIVISION OF WATER )
QUALITY, )
Respondent. )
IN THE OFFICE OF .
ADMINISTRATIVE HEARINGS
07 EHR 0439
07 EHR 0177
SETTLEMENT AGREEMENT AND
WITHDRAWAL OF PETITION
The North CarolinwDepartment of Environment and Natural Resources (hereinafter
`Respondent) and Petitioner, Alchem, Inc., (hereinafier`Petitioneit), hereby enter into this
Settlement Agreement (hereinafter"Agreement) in order to amicably resolve matters in '
controversy as they relate to a civil penalty assessment and permit requirements. This matter
arose out of theassessment of civil penalties and costs totaling ton thousand six hundred
seventy-seven dollars and sixty-one cents ($10, 677.61) which includes six hundred seventy-
seven dollars and sixty-one cents ($677.61) in enforcement costs, imposed upon Petitioner on
February 20, 2007 for alleged violations ofNorth Carolina General Statutes § 143-2I5.1 et seq
and Non -Discharge Permit WQ00.16335. This settlement Agreement also addresses and covers
challenges to Alchem permit WQ0002702.
Without any hearing of fact or law in the above -styled matters, Respondent and the
Petitioner have reached the following settlement agreement in this matter:

1. Petitioner will adhere to the following conditions:
a. Within 30 days of the execution of this Agreement, Petitioner will
immediately create two (2) feet of freeboard space in all storage lagoons.
Additional bauxite residuals must be disposed of in a manner consistent
with Water Quality General Statutes and the relevant rules promulgated
thereunder or applicable Solid Waste Statutes and the relevant rules
promulgated thereunder '(it is anticipated' than the bauxite in, the first
I agoon will be disposed of off site and the residuals from other lagoons
can be disposed of on site after elcaning and in accordance with the terms
of this agreement);
b. Petitioner will refrain from placing any bauxite residials for fill, in the
berm area until construction and repairs to the berm and stormwater
retention pond below that area are complete;
:c. Petitioner will complete construction and repairs to berm and stormwater
retention pond on or before October 30, 20177, with site work monitored by
a licensed professional engineer to ensure proper construction and with
notification to Mooresville Regional Office of DWQ upon completion;
d. Petitioner small inspect and repair all three storage lagoons on site by June
1, 2008, with site work monitored, tested and certified by a licensed
professional engineer to ensure proper construction. In order to meet ibis
requirement, the Petitioner will be allowed to set up a temporary mixer on
site for the purpose of combining the residuals with a chemical agent that
-2-

will bring them into compliance with appropriate pH levels, which will be
removed once the storage lagoons have been repaired and the Respondent
has determined that the residuals are leaving the wash system and reaching
the storage lagoons and berm areas at the appropriate pH levels;
e. ' On or before March 1, 2008, the Petitioner will submit to the Mooresville
Regional Office of DWQ a site assessment prepared by a licensed
professional engineer. The site assessment should include a site map, a
land survey that delineates current fill and set backs from residential and
commercial properties, operational plan including projected estimate of
site life;
f. On or Before June 1, 2008, the Petitioner will install sartiplingport5 in the
pipes between the wash system and the storage lagoons. Additionally,
Petitioner will provide sampling data to the Mooresville Regional Office
of DWQ that the bauxite residuals being transferred from the wash system
to the mixer and/or storage lagoons and eventually to the berm fill area,
have achieved the prescribed pH level; and
g. Petitioner may seek a permit modification to address condition H(5)(a)
(400-foot buffer zone) after a concurrent site inspection with DWQ staff
and a licensed professional engineer retained by Petitioner.
2. Petitioner shall pay Respondent nine thousand dollars ($9,000.00), (hereinafter
`Settlement Amount), which includes eight thousand three hundred twenty-two dollars and thirty-
nine cents ($8,32239) for the civil penalty and six hundred seventy-seven dollars and sixty-one
-3-

cents ($677.61) for investigative costs. The Settlement Amount shall be made in nine (9) equal
payments of one thousand dollars ($1,000.00) due on the 1st day of every month. The first
payment will be due within thirty (30) days of the execution of this Agreement.
3. The payments shall be by check made payable to the'North Carolina Department
of Environment and Natural Resourced'or tOU NWat the following address:
Stormie D. Forte, Esq.
Attorney General's Office
Environmental Division
9001 Mail Service Center
Raleigh, NC 27699-9001
4. Thebreach of any condition of Paragraphs one (1), or two (2) by Petitioner will.
render due and payable the entire amount of the civil penalty assessment, including investigative
costs i.e., ten thousand six hundred seventy-seven dollars and sixty-one cents (I 10, 677.61). Any
payments made by Petitioner prior to any breach, will be subtracted from the original amount of
the civil penalty assessment for purposes of collection.
S. :petitioner and Respondent expressly stipulate and acknowledge that, by entering
into this Agreement, Petitioner neither admits nor denies the allegations contained in the
Inspection Reports, Notices of Violation, Notices of Additional and/or Continuing Violations,
Findings and Decisions or Assessment of Civil Penalties. However, upon a breach of paragraph
one (1) or two (2) of this Agreement, by Petitioner, the sole issue in any action by Respondent is
to collect the Entire amount of the civil penalty assessment including investigative costs i.e., ten
thousand six hundred seventy-seven dollars and sixty-one cents (S 10, 677.61) in accordance with
the terms of paragraph four (4) above and will be limited to the Petitionefs compliance with the
terms of this Agreement. Additionally, for the purposes of future violations of the Water Quality
-4-

Statutes and the rules promulgated thereunder, the violations that arc the subject of the Notice of
Violation and Civil Penalty Assessment for this matter will be used to document the petitioner's
prior record,
6. . Respondent agrees to accept a payment in the amount of nine thousand dollars
($9,000.00), in complete satisfaction of the civil penalty assessment dated February 20, 2007,
subject to the terms of this Agreement.
7. Nothing in this Agreement shall restrict any right of Respondent to inspect or take
any enforcement action against Petitioner for any new, subsequent, or future violations ofthe
Water Quality Statutes and the relevant rules promulgated thereunder, occurring outside of the
February 20, 2007 civil penalty assessment. Similarly, nothing in this Agreement shall restrict
a
the right of Petitioner to contest a new or subsequent enforcement action arising outside of the -
February 20, 2007 civil penalty assessment.
Respondent and Petitioner agree that, for purposes of any future bankruptcy
Proceeding, this Agreement is not intended as, nor shall it be deemed to constitute, a novation of
any claims asserted by Respondent against Petitioner. Nothing ih this Agreement releases any
nondischargeabiiity claims that may be asserted by Respondent in any bankruptcy proceeding,
and nothing in this Agreement shalt be deemed a waiver of Respondent's right to rely on the
nature of any claim or debt released in this Agreement to show that the claim or debt is
nondischargeable_
9. This Agreement shall be binding upon the parties and is entered into knowingly,
intelligently, and voluntarily.
10. Signatures hereto via email are as binding as original signatures.
-5-

WITHDRAWAL OF PETITION
11. Entry of this Agreement serves as Petitioner's Withdrawal of its Petition for
Contested Case Hearing Without Prejudice in these matters, The parties agree this matter is
concluded and that no fiuther proceedings are needed or required to resolve the contested case.
FOR THE DIVISION OF WATER
QU ITY:
V - —
Andrew Pitner, Mooresville
Regional Supervisor, DWQ
Date: ` 2{y . G-)
APPROVED AS TO NORM:
ROY COOPER
Attorney,General
By.
Stormie D. Forte
Assistant Attorney General
N. C. Department'df Justice
Environmental Division
9001 Mail Service Center
Raleigh NC 27699-9001
ALCHEM, INC.:
Randall F. Andrews
Alchem, Inc.
Date: I ! f'a ° o /
THE YARBOROUGH LAW FIRM
Attorneys at Law
By: wr i!/� D
H. Addison Winters
Attorney at Law
P. O Drawer 705
Fayetteville NC 28302
-6-

NCDENR MRO Fax:[phone]
ACAC T r a n s m i t Conf_ P-e0 0 rt 11-:-
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Dec 10 2011' 11.32
Fax/Phone Number
Mode
Start
Time
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ReSU It
Note
7042798418
NORMAL
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NORTH CAROLINA
ROBESON
ALCHEM, INC.
VS.
IN THE OFFICE OF ADMINISTRATIVE HEARINGS
Petitioner
FILE NOS: 07 EHR 0439 and 07 EHR 177
NORTH CAROLINA DEPARTMENT OF
NATURAL RESOURCES
Respondent
PETITIONER'S FIRST SET OF
INTERROGATORIES AND
REQUEST FOR PRODUCTION
OF DOCUMENTS
Petitioner, Alchem, Inc. (hereinafter "Alchem"), by and through counsel, pursuant to
N.C. Rules of Civil Procedure 26, 33 and 34, hereby requests Respondent, North Carolina
Department of Environment and Natural Resources (hereinafter "DENR") to answer the
following within the time allowed by the North Carolina Rules of Civil Procedure.
DEFINITIONS OF TERMS FOR INTERROGATORIES AND REQUESTS
FOR PRODUCTION
1. The term "document" is used in its customary and broad sense to mean, by way of
illustration, and not by way of limitation:
1.1 All written, printed, typed, recorded, filmed or graphic matter of every
type and description, however, and by whomever prepared, produced, reproduced,
disseminated or made, in the actual or constructive possession, custody or control
of any party to whom these interrogatories are directed, including but not limited
to all writings, letters, audio tape, video tape, electronic mail ("e-mail") or records
of electronic mail ("e-mail"), voice mail or records of voice mail, minutes, files,
bulletins, correspondence, maps, map overlays, telegraphs, telegrams, personal or

inter -office memoranda, notes, instructions, diaries, literature, work assignments,
inter -company or intra-company communications, notebooks, pamphlets,
periodicals, professional manuals, records, bookkeeping entries, agreements,
contracts, notations of telephone or personal conversations or conferences, intra-
and inter- office communications, microfilm, circulars, advertisements, catalogs,
studies, notices, summaries, reports, books, financial statements, returns, checks,
check stubs, check statements, agreements, invoices, graphs, photographs, drafts,
films, video and audio tap recordings, data sheets, data compilations, computer
software, computer data sheets, computer data compilations, computer tapes,
disks or other computer recording media, work sheets, statistics, speeches and
other writings, tape recordings, transcripts of tape recordings, records or
recordings of oral conversations or meetings, transmission data, photograph
records of data compilations from which information may be obtained or can be
translated through detection into reasonably usable form, or any other tangible
things;
1.2 originals and all other copies not absolutely identical; and
1.3 all drafts and notes, whether typed, handwritten or otherwise made or prepared in
connection with such documents whether used or not.
If there is any doubt as to whether an item is a "document", it should be included in the response.
2. The term "communication" means any contact, oral or written, formal or informal, at
any time or place, under any circumstances, in any manner, whereby a statement of any nature
is transmitted, disclosed, exchanged or transferred and shall include without limitation any

documents containing, constituting, reflecting, memorializing, referring or relating to any such
contact.
3. The word "or" means "and/or" and should be read both ways so as to encompass
both constructions and calls for responses to be given responsive to both constructions.
4. The term "including" means "including, but not limited to".
5. "Identify", "identification" or "identity" includes, but is not limited to, the
following meanings:
5.1 when used with respect to a natural person, it means to state the full name
of the person, his/her present employment and job title, the name of the present
employer and his/her business and home addresses, including the respective
telephone numbers;
5.2 when used in reference to any business entity or unincorporated
association, it means to state the full name of the entity or association and the
address and telephone number of its principal office;
5.3 when used in reference to a document, it means to state the type of
document (see the definition of "document" above) or some other means of
recognizing it, its author(s) or signer(s), the name and job title of each person who
received or was designated to receive a copy, its date, its present location or
custodian, and a summary of its contents. If any document requested to be
identified is not in the possession or control of the aforementioned persons, or is
no longer in existence, state whether it is: (1) missing or lost; (2) destroyed; (3)
transferred voluntarily or involuntarily to others and, if so, to whom; or (4)
otherwise disposed of, and in each instance explain the circumstances surrounding

and authorization for such disposition thereof and state the approximate date
thereof.
6. Whenever the term "person" is used herein, it shall be interpreted to include
without limitation natural persons, partnerships, corporations; unincorporated associations,
governmental units, agencies and other such entities.
7. The term "the Project" refers to 8135 Red Road, Rockwell (Rowan County),
North Carolina.
The term "Alchem" refers to Alchem, Inc., and its successors, agents,
representatives and attorneys, unless otherwise specified.
9. The term "DENR" refers to North Carolina Department of Natural Resources, and
its agents, successors and assigns unless otherwise specified.
10. The term "Old Permit" refers to permit WQ006335 issued by DENR dated 3/1/99.
11. The term "Permit" refers to a permit WQ006338 issued by DENR dated 12/28/06.
12. The term "relate(s)", "relate(s) to" or "relating to" means referring to, supporting,
contradicting, mentioning, evaluating, discussing or relevant to.
13. The term "you" or "your" refers to DENR unless otherwise specified.
INSTRUCTIONS FOR INTERROGATORIES AND
REQUESTS FOR PRODUCTION
1. The time period covered by this discovery request is from January 1, 2004 until
the present, unless otherwise specified.
2. If you object to any Interrogatory or Request for Production, please state in detail
the grounds upon which the objection is based.

If any document or other tangible evidence responsive to any Interrogatory or
Request for Production has been destroyed, disposed of, lost, mutilated, altered, redacted or is
not presently available, identify the document and include a statement as to its disposition.
4. In answering the Requests for Production and the Interrogatories, furnish all
information available to you, including information in the possession of your attorneys or their
investigators, and all other persons acting in your behalf, and not merely information of which
you have personal knowledge. If you cannot answer the Interrogatories, or comply with the
Requests for Production fully after exercising due diligence to secure the information, so state
and answer to the extent possible, specifying your inability to answer or comply with the
remainder and stating the specific efforts made to obtain the information necessary to answer
fully.
If a refusal to answer an Interrogatory or Request for Production of Documents is
based on burdensomeness, identify the number and nature of documents needed to be searched,
the location of the documents and the number of person hours and costs incurred to conduct the
search.
6. "And" as well as "or" shall be construed either disjunctively or conjunctively as
necessary to bring within the scope of the specification or response that which might otherwise
be construed to be outside the scope. 'Bach" shall be construed to include the word "every" and
"every" shall be construed to include the word "each." "Any" shall be construed to include the
word"all" and "all" shall be construed to include the word "any."
7. The use of a verb in any tense shall be construed as the use of the verb in all
tenses, wherever necessary to bring within the scope of the Interrogatory or Request for
Production, all responses which might otherwise be construed to be outside its scope.

8. A plural noun shall be construed as a singular noun and a singular noun shall be
construed as a plural noun, whenever necessary to bring within the scope of the Interrogatory or
Request for Production, responses which might otherwise be construed to be outside its scope.
9. The Interrogatories contained within this document are continuing in nature.
Therefore, you are requested to supplement your responses to these Interrogatories with
information which you or anyone acting in your behalf may locate or obtain subsequent to your
initial response to these Interrogatories that will augment or otherwise modify the mutual
answers to the Interrogatories below. Such supplementary responses are to be served upon
Alchem within thirty (30) days after receipt of such information.
10. If a claim of privilege is asserted as to any oral or written communication for
which identification is requested by this Request for Production of Documents, please identify
such oral and written communication and those persons with knowledge regarding any facts
contained in or the substance of said communication so as to allow Alchem to bring this matter
before the Court. Communication shall be deemed to be adequately described for this purpose if
the following information is provided:
a. The nature of the privilege claimed (privilege as used herein shall include
work product);
b. The identity and position of the person(s) supplying the information on
which the communication is based;
C. In the case of written communications, the approximate date the document
was prepared, its title, the type of document (e.g., letter, memo, etc.), addresses,
and the name and position of each person, including attorneys representing
DENR, in connection with this lawsuit, to whom the contents of the document
C7

have been communicated by copy, exhibition, reading or substantial
summarization;
d. In this case of oral communications, the location and approximate date of
each such communication, the identity of the person who was a party to the
communication, and the identity of each person, including attorneys representing
DENR in connection with this lawsuit, to whom the content of substance of the
communication, or any part thereof, has been communicated; and
A brief description or summary of the contents or substance of the
communication sufficient to explain the basis for the claim of privilege.
11. If any document or other tangible evidence requested herein was at one time in
existence and in your possession, or possession of one of your agents or experts, but was lost,
discarded, or destroyed, or has been removed from your possession, custody or control, please
provide the following information:
a. Identify and describe each document or other tangible evidence by date,
title and type of document or evidence;
b. State when each document or other tangible evidence was most recently in
possession or subject to your control, and what disposition was made of such
document or other tangible evidence, including an identification of the person, if
any, presently in the possession or control of such document or other tangible
evidence;
C. State when the document or other tangible evidence was transferred or
destroyed. Identify the person who transferred or destroyed the document or other

tangible evidence and the person who authorized such transfer or destruction or
has knowledge of its transfer or destruction; and
d. Identify all persons having knowledge of the contents of the document or
other tangible evidence thereof.
12. Whenever DENR's response calls for identification of a communication of any
type and such communication was oral, the following information should be furnished:
a. By whom it was made and to whom;
b. The date when it was made;
C. Who else was present when it was made;
d. Whether it was recorded or transcribed in any writing of any type.
INTERROGATORIES
W
Please identify and provide a detailed accounting of how your arrived at the Civil
Penalty Assessment dated 2/20/07, including but not limited to which of the criteria in § 14313-
282.1, and § 143-215.6A; 15 and all pertinent sections of N.C.A.C. you relied upon and how
each criterion was translated into a monetary figure which comprised the Civil Penalty
Assessment. If you recorded your calculations which support your Civil Penalty Assessment,
please identify these calculations and how they were arrived at.
ANSWER:
2. Please identify all documents which comprise your file(s) relating to the Civil
Penalty Assessment, Notices of Violation, Notices of Continuing Violation and/or Notices of
1
Additional Violation.
ANSWER:
i
8

0
3. Please identify all correspondence between you and Alchem and/or between you
and any other entity concerning the Project or any related matters.
ANSWER:
n
4. gIdentify all conversations between DENR representatives and Alchem
representatives, related to the New Permit, or Notices of Violation, or Civil Penalty Assessments
issued with regard to the Project, including when the conversations occurred, who was present
and the substance of said conversations and, if such conversations were taped, identify said
tape(s).
MMIL "
5. Identify all additional work you contend was done at each site after each report.
ANSWER:
6. fIdentify all penalties previously assessed against Alchem.
ANSWER:
7. Identify and explain all notations you have on all photographs you have made or
will make available to Alchem and all photographs in your possession related to
the Project.
8. ANSWER:
9

8. For each violation you listed in your Civil Penalty Assessment, identify which
picture(s) purports to show which violation(s) and any other document any evidence of each
alleged violation.
ANSWER:
✓U
9. Ident' all reports you prepared on this Project. hf
ANSWER:
10. In your Civil Penalty Assessment dated 2/20/07, identify each violation of N.C.
Gen. Stat. § 143-215.1(a)(6), identifying exactly when each violation occurred and identify any
documents that support your contention.
ANSWER:
11. In your Civil Penalty Assessment dated 2/20/07, for each violation of Part I.1 and
11.3 of DWQ Permit No. W00016338, identify how the permit was violated, exactly where each
violation occurred, and identify any documents that support your contention.
ANSWER:
12. Identify all compliance inspections you performed for this Project including, but
not limited to 12/05/06.
ANSWER:
10

13. Identify all Notices of Violation, Notices of Additional Violation and/or Notice of
Continuing Violation, issued on the Project, including but not limited to 12/20/06.
ANSWER:
14. Identify all permits issued for the Project.
ANSWER:
REQUESTS FOR PRODUCTION O DOCUMENTS
1. Please produce copies of all photographs you h related to the Project.
ANSWER:
2. Please produce a copy of all documents in your file(s) related to this matter.
ANSWER:
3. Produce any affidavits you have taken related in any way to this matter.
ANSWER: n i
4. Produce a copy of the , ivE it penalty assessment worksheet(s
ANSWER:
V
11

CERTIFICATE OF SERVICE
I do hereby certify that a copy of the foregoing Petitioner's First Set of Interrogatories and
Requests for Production of Documents to Respondent has been duly served upon the below
named individual by depositing the same in the mail with the U.S. Postal Office to the following
address:
Stormie D. Forte
ATTORNEY GENERAL'S OFFICE
Environmental Division
9001 Mail Service Center
Raleigh NC 27699
This the 29th day of May, 2007.
ICI HAIK"41 : 0WN 6181I9WAI /III:-TI
H. ADDISON WINTERS
Attorney for Petitioner
P.O. Box 705
Fayetteville, NC 28302
[phone]
13

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Q OFFICE
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ALCHEM, INC
8135 RED ROAD
ROCKWELL, NORTH CAROLINA
qWN BY
FIGURE 1 IDE LTA

IV

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-� ��

ALUHEM, 1NU.
Corporate Office Sales and Manufacturing
2042 Buie Philadelphus Road 8135 Red Road
Red Springs, NC 28377 Rockwell, NC 28138
Tel. [phone]— 800-522-2944 Tel. [phone]o8 — 8o0-462-2586
Fax 9io-843-5789 Fax [phone]
[e-mail] [e-mail]
June 26, 2007
Ms. Edythe McKinney
N.C. DENR
Raleigh, NC
Dear Ms. McKinney:
Our company has a small chemical plant just north of Rockwell. We employ
approximately 10 people. We use holding. lagoons for our sand by-product. We have
another area that we typically put this sand in. Several years ago we had a small amount
of the sand wash off site during a very rainy period. Since that time we have been fined
on several occasions by the NCDENR in Mooresville. We have worked hard and spent
substantial amounts of money to make certain that this does not happen again. We have
received new permits that are so difficult to meet that we have had to employ lawyers to
contest them. We are in the process of adding a small area to our plant that will create
more work and possibly new employees. We have a permit to remove the sand from our
lagoons and use to build an area for the plant addition. Unfortunately, the head of ground
water in Mooresville has decided that we are not to put anymore sand in the new area.
He wants us to spend $50,000.00 to carry our sand to the land fill and spend $20,000.00
to buy sand to complete our project. I cannot tell you all of the times I have called and
visited Mr. Andrew Pitner in Mooresville to try and change his mind. We have had
environmental consultants write and tell him that there is no problem. In any case I could
go on and on and write a book on the matter. We are not a high profit company. We
have not made a profit in several years. In the last 5 years we have had two competitors
declare Bankruptcy. This year we have finally started to turn profitable but now we run
into a brick wall with Mr. Pitner in Mooresville.
My question is this. Do you have anyone who could possibly help us in this matter? I
dislike having to go to you to see if you can help but we seem to have no other hope.
Best regards,
ALCHEM, INC.
Randall F. Andrews,
Plant Manager
ams

NO. COA06-1458
NORTH CAROLINA COURT OF APPEALS
Filed: 19 June .2007
ALCHEM, INC.,
RANDALL ANDREWS,
Petitioner,
V.
N.C. DEPARTMENT OF ENVIRONMENT
AND NATURAL RESOURCES, DIVISION
OF WATER QUALITY,
Respondent.
rn
L�
Wake County
No. 05 CVS 012073
A... 1. b> tit. bner .,:#�:�.:ck Qm, Iris 2 ,,,�;� ne
IMP a -A. ' P ::;.
>'
"r ' r>>
k. u ' " 1::5:>: l . Court
200><Stari ask J � ? q
Heard in the Court of Appeals 10 May 2007.�
MCCULLOUGH, Judge.
On 28 December 2.004 the Division of Water Quality_ of the North
Carolina Department of Environment and Natural Resources ("NCDENR-
DWQ") issued a water quality permit to Alchem, Incorporated
("petitioner"). NCDENR-DWQ sent a letter along with the permit
notifying petitioner of its right to object to any terms or
conditions set forth in the permit by requesting an adjudicatory
hearing through filing a written petition in the Office of
Administrative Hearings ("OAH") within 30 days following receipt of
the permit. Petitioner received the permit on 18 January 2005. On

-2-
10 February 2005, petitioner wrote a letter to NCDENR-DWQ
requesting an extension of 90 days to examine and respond to the
permit. Subsequently, on 8 March 2005 petitioner wrote a letter to
NCDENR-DWQ stating certain objections and questions with regard to
the permit.
Petitioner thereafter submitted a written letter to OAH
stating its intention to appeal the conditions set forth in the
permit on 29 April 2005 and on 4 May 2005 OAH issued a notice of
contested case and assigned the case to an administrative law judge
("ALJ"). NCDENR-DWQ filed a motion to dismiss on 25 May 2005. On
29 July 2005, the ALJ issued a final decision granting NCDENR-DWQ' s
motion to dismiss where OAH lacked subject matter jurisdiction over
the proceedings.
On 29 August 2005, petitioner filed a petition for judicial
review in wake County Superior Court for review of the ALJ's order
dismissing petitioner's case. NCDENR-DWQ filed a motion to dismiss
the petition for judicial review under N.C. Gen. Stat . § 1A-1, Rule
41(b) for failure to comply with the rules requiring a petition for
a contested case hearing to be filed within 30 days from
notification to the permittee of the Commission's decision. On 22
June 2006, the court entered an order dismissing the petition for
judicial review. From this order petitioner appeals.
On appeal petitioner contends the lower court erred in failing
to reverse or remand the case to OAH for failure to enter findings
of fact and conclusions of law, failing to state its standard of
review and making additional findings of fact, failing to make

IZOY COOPI=R
a STATE,11" 4'
�.F r,..., z
I <; y
�
Reply to:
Stormie D. Forte
State of North Caroline
Environmental Division
-I-'el
[phone]
Department of Justice
Fax [phone]
Slin teki T1Cdoj.c011
900 1 MaiI Service Center
ALLIC.�t t, N_ Rl I i C /-\ROLINA
27t599-9W I
June 22, 2006
H. Addison Winters, Esq.
The Yarborough Law Firm
Post Office Box 705
Fayetteville, North Carolina 28302
� D
Re: Alchem, Inc., Randall Andrews. v. NCDENR, Division of Water Quality
Wake County Superior Court
File No. 05 CVS 012073
Dear Ad:
I have enclosed a file -stamped copy of Judge Stanback's order dismissing your client's
Petition for.Judicial Revicw. With best wishes and warm regards, I am
Very truly yours,
Stormie D. Forte
Assistant Attorney General
cc Shannon Thornburg, Environmental Engineer, Division of Water Quality, w/enclosure
Rex Gleason, Surface Water Protection Supervisor, Mooresville Regional Office,
Division of Water Quality, w/enclosure

S l ATE OF NORTH CAROLINA ;; SIN THE GENERAL COURT OF JUSTICE
SUPERIOR COURT DIVISION
COUNTY OF WAKE 05 CVS 012073
Z00b 211 22 A IC: 58
ALCHEM, INC., NA {i L C 0 U }? i iY, C S C
RANDALL ANDREWS, )
Petitioner, )
V. ) ORDER
N.C. DEPARTMENT OF ENVIRONMENT )
AND NATURAL RESOURCES, DIVISION )
OF WATER QUALITY )
Respondent. )
UPON consideration of the Petition for Judicial Review, heard on the 201h day of June, t
2006, the undersigned makes the following:
FINDINGS OF FACT
1. On December 22, 2004, the Respondent issued Petitioner Water Quality Permit
No. 0002702 (the Permit) pursuant to Water and Air Resources statutes, N.C. Gen. Stat.§ 143-
211 et. seq., N.C. Admin. Code tit. 15A, r.2B.0100 et. seq., and N.C. Admin. Code tit. 15A, r.
21-1.0100 et. seq.
2. Petitioner received the cover letter and permit on or about January 18, 2005.
3. On May 2, 2005, Petitioner filed a petition for a Contested Case Hearing with the
Office of Administrative Hearings.
4. On May 25, 2005, Respondent filed a Motion to Dismiss the petition for lack of
subject matter jurisdiction.
5. On July 29, 2005, the Honorable Fred G. Morrison, Jr., granted Respondent's

N-1o'don L"o Dismiss.
matter.
6. On August 29, 2005, the Petitioner filed a Petition for Judicial Review in this
7. On October 13, 2005, Respondent filed a Motion to Dismiss the Petition for
Judicial Review.
8. On October 18, 2005, Petitioner filed a Response to the Motion to Dismiss.
9. On April 6, 2006 the Honorable John W. Smith heard oral arguments on the
Motion to Dismiss and denied the same. The Court did not reach or address the merits of the
underlying case in the Motion to Dismiss, therefore the order was interlocutory.
CONCLUSIONS OF LAW
1. This petition for judicial review is supject to dismissal pursuant to N.C.Gen. Stat.il
t
§ lA-1, Rule 41(b).
2. N.C. Gen. Stat. §15013-23(a) requires that a contested case petition state facts to
establish that the agency named as the Respondent either exceeded its authority or jurisdiction;
acted, erroneously; failed to use proper procedure; acted arbitrarily or capriciously; or failed to
act as required by law or rule.
3. Petitioner failed to allege any wrongdoing on the part of Respondent as mandated
by N.C. Gen. Stat. § 15013-23(a), Petitioner has failed to state a claim upon which relief can be
granted by the Office of Administrative Hearings.
4. N.C. Gen. Stat. § 143-215.1(e) requires that a permit applicant or permittee
commence a contested case by filing a petition under N.C. Gen. Stat. § 150B-23 within 30 days
after being notified of the Commission's decision. If the permittee does not file a petition with
the within the required time, the Commission's decision is final.

5�. Petitioner received notice of the 30 day time frame to file the petition in the.cover
letter transmitted with the permit on December 22, 2004.
6. Petitioner acknowledges receiving the cover letter and permit on January 18,
ID
2005.
7. Petitioner filed the Petition with the Office of Administrative Hearings on April
29, 2005, which was 90 days after receiving notice of the Commission's decision.
8. The Office of Administrative Hearings lacked subject matter jurisdiction to hear
the petition based on the Petitioner's late filing pursuant to N.C.Gen. Stat. § IA-1, Rule -12(b)1,
N.C. Gen. Stat. § 143-215.1(e) and N.C. Gen. Stat. § 150B-23(o.
Therefore, the undersigned, DISMISSES, the Petition for Judicial Review.
i
This is the 20`h day of June, 2006.
Presiding Superior Court Judge

ALCHEM, INC.
Corporate Office
2042 Buie Philadelphus Road
Red Springs, NC 28377
Tel. [phone] -- 800-522-2944
Fax [phone]
[e-mail]
January 18, 2006
Sales and Manufacturin4
8135 Red Road
Rockwell, NC 28138
Tel. [phone] — 800-462-2586
FJAH
[�f] Fax rye@a9-8418
�►J [e-mail]
19 2006
Mr. Andrew Pitner, P.G.
Mooresville Region
Aquifer Protection Supervisor
Division of Water Quality
610 East Center St. Suite 301
Mooresville, NC 28115
Dear Mr. Pitner:
Thank you for your letter of January 6, 2006. We have worked with both a surveyor and
Boyle Engineering to get all of the information that you require. I am now discussing
with a construction company what our best options are as to how to proceed. These
options will decide how much longer we will be able to use the sand from our process.
Would you give me 60 more days. At the end of that time I should have all of the
necessary information together. The new permit remains under appeal. I have enclosed a
copy of the appeal.
Best regards,
ALCHEM, INC
Randall F. Andrews
Sales Manager
ams

1
_`, JAN-17-2006 16-52 YARBOROUGH LAW FIRM 9104332233
Y
s
NORTII CAROLINA IN THE GENERAL COURT OF JUSTICE
SUPERIOR COURT DIVISION
WAKE COUNTY MILE NO.: 05 CVS I2073
ALCHRM, INC. )
RANDALL ANDREWS, )
Petitioner/Appellant )
VS. )
NORTH CAROLINA DEPARTMENT OF )
ENVIRONMENT AND NATURAL )
RESOURCES )
Respondent/Appellee. )
PETITIONER'S OBJECTION TO
RESPONDENT'S MOTION TO
DISMISS AND. BRIEF IN SUPPORT
THEREOF
NOW COMES Petitioner/Appellant, Alchem, Inc., Randall Andrews ("Petitioner" or
"Alchem"), by and through counsel, and fries its Objection to Respondent's Motion to Dismiss
(the Motion to Dismiss is attached hereto as Exhibit A) and Brief In Support Thereof. In support
Of Petitioner's Objection to Respondent's Motion to Dismiss, Petitioner alleges and says the
following:
I. FACTS
Respondent filed a Motion to Dismiss Petitioner's Petition for Judicial Review' based on
Petitioner's alleged failure to provide Respondent with a copy of the Petition that Petitioner filed
on August 29, 2005 and based upon an alleged failure to rile a supporting brief
On September 1, 2005, Petitioner mailed a copy of its Petition for Judicial Review (which
contained the elements of a brief inter alla to Counsel for North Carolina Department -of
Environment and Natural Resources, Department of Water Quality C1DWQ11). (See attached
` The facts of the underlying substantive dispute arc: set out in the Petition itself and the Petition and
its contents are incorporated by reference herein. The Petition is also attached as Respondent's Exhibit B to
Respondent's Motion to Dismiss.
J

JAN-17-2006 16:53 YARBOROUGH LAW FIRM 9104332233 P.03
Affidavit of Darlene Isom, attached hereto as Exhibit 13, the contents of which are incorporated
by reference herein).
IY. LAW
According to N.C. Gen. Stat. § 150D-46, Petitioner served a copy of the Petition on the
appropriate party within 10 days of filing the Petition with this Court, which occurred on August
29, 2005. In addition, in .Tames v a ne CQuntv Board of Education 15 N:C. App. 531 190
S.E. 2d. 224 (1972), the court stated that the purpose of the 10-day statute was "to confer the
right of review on the agency making the decision being appealed from." The Court stated that
"the statute should be liberally construed to preserve that right." Certainly that right was not
denied in this matter. DWQ's attorney received the Petition on or about -September 2, 2005 and
another copy around September 17, 2005 from the Clerk of Court. To dismiss Petitioner's
Petition on a technicality would be a further elevation of form.over substance, which is the very
problem with the agency decision being appealed from by the Petitioner..
The Petition for Judicial Review of Final Decision of the Order of Dismissal contained
within it the petition and a brief in support thereof. As is obvious from a review of the Petition
for Judicial Review, the Petition states not only the facts of the matter, but also case law in
support ofthc Petition. This was served on Respondent by Petitioner via U.S. mail on or about
September 1, 2005, which was within the 20-day period allowed by N.C. Gen. Stat. § 15013-47.
Further, although Respondent, in its Motion to Dismiss, cites§ 15OB-47 for the proposition that a
brief must be filed within 20 days of the certified record, § '15013-47 requires no such thing. In
fact, not only is a brief not required to be filed, but also the word "brief' does not appear in §
15013-47. Similarly, Tenth Judicial District Local Rule 9.2 deals with the mandatory timing of
filing a brief with the Court and serving a brief on the agency. It does not, by its language,
�a

- JAN-17-2006 16:53 YARBOROUGH LAW FIRM 9104332233 P.04
require that a brief be filed; it only deals with proper time for fling and service of a brief ifa
brief is filed.
It is interesting to note that one of the cases cited in Petitioner's Petition stands for the
Proposition that "the law does not ldvor resolving disputes on procedural issues rather than on
substantive issues." See avis v. Williamson, 588 F. 2d 69 (0 Cir. 1978); 'Wright and MilIcr,
Federal Civil Practice and Procedure § 1217. It appears that Respondent is attempting to again
resolve a dispute based on a technicality rather than on the merits of the case.
Interestingly, counsel for Petitioner, Ms. Forte, received a copy of the record that was
sent to _Wake County Clerk of Court on September 16, 2005 by the Office of Administrative
Hearings, as did someone named Thomas A. Horton, but Counsel for Petitioner was never
provided a copy of the same (as can be seen by noting the absence of petitioner's counsel's name
in the "cc" section of Exhibit C of Respondent's Motion to Dismiss). Therefore, even if a brief
was required to be provided by petitioner, which it is not, according to the.language of the rules .
cited by Respondent, Petitioner did not receive a notice of the September 21, 2005 filing of the
record until October 17, 2005.
III: CONCLUSION
WHEREFORE, because the Petition that was filed with the Court on August 29, 2005,
was served on the Respondent on or about September 1, 2005, and again on or about September
17, 2005 by the Clerk of Court, because the Petition contained the elements of a brief within it
(although a brief is not required by N.C. Gen. Stat. § 15OB-47 or by Tenth District Local Rule
9.2) and it was properly and timely filed with the Court and served on Respondent, it would be
inappropriate and unjust for the Court to grant an involuntary dismissal of the' Petition for
Judicial Review due to the alleged failure to prosecute by Petitioner. Petitioner has prosecuted
3
3

JAN-17-2006 16.53 YARBOROUGH LAW'FIRM 9104332233 P.05
the case and, believes this appeal should be heard on the merits. Therefore, under N-C. Rule of
Civil Procedure 41(b), there was no failure to prosecute this action by petitioner, there was no
failure to serve a copy of the Petition on Respondent within I0 days of filing as prescribed in
N.C. Gen. Stat. 150B-46 and because there was also no failure to file and serve a brief in support
of Petitioner's Motion, Petitioner prays that this Court deny Respondent's Rule 41(b) Motion to
Dismiss Petitioner's'Petition for Judicial Review for failure to prosecute.
This the % day of October, 2005,
THE YARBOROUGH LAW FIRM
By: �. 6wL
H. ADDISON WINTERS
Attorney for Petitioner
Post Office Box 705
Fayetteville, NC 28302
[phone]
4
4

JAN-17-2006 16:54
YARBOROUGH LAW FIRM
9104332233 P.06
CEYtTIFICATE OF SERVICE
I do hereby certify that a copy of the foregoing Objection, to Respondent's Motion to
Dismiss and Brief In Support Thereof has been duly served upon the below named individuals
by depositing the same in the mail with the U.S. Postal. Office to the following addresses:
Stormie D. Forte
Associate Attorney General
North Carolina Department of Justice
P.O. Box 629
Raleigh NC 27602
This the C day of October, 2005.
13Y-!`�'Akw
I1. ADDISON WINTERS
Attorney for Petitioner
Post Office Box 705
Fayetteville, NC: 28302
[phone]
E
S

JAN-17-2006 16:54 YARBOROUGH LAW FIRM 9104332233 P.07
STATE OF NORTH CAROLINA IN THE GENERAL COURT OF JUSTICE
SUPERIOR COURT DIVISION
COUNTY OF WAKE 05 CVS 12073
ALCHEM, INC., )
RANDALL ANDREWS, )
Petitioner, )
V. )
N.C. DEPARTMENT OF ENVIRONMENT )
AND NATURAL RESOURCES, DIVISION)
OF WATER QUALITY )
Respondent. )
MOTION TO DISMISS
NOW COMES Respondent, the North Carolina Department of Enviromricnt and
Natural Resources (DENR), Division of Water Quality (DWQ), through its undersigned
counsel, and moves this Court for an Order ofDi=issal in the above -captioned matter pursuant
to N.C. Gen. Stet. § IA-1, Rule 40)(3), N.C. Gen. Stat. § IA-1, Rule G, N.C. Gen. Stat. § IA-1,
Rule 41(b)(1), N.C. Gen. Stat. § 150-46, N.C. Gcn. Stat. § 1505-47, and Rule 9.2ofthe Tenth
Judicial District Local Rules. In support of this Motion, the Respondent shows the following:
I. This matter involves Petitioner's objection to Respondent's modification of Water
Quality Permit No. 0002702 (the "Permit") issued to Alchem, Incorporated ("hereinafter
Petitioner") on December 22, 2004. The permit was Issued for the continued operation of a waste
water recycle system consisting of three (3) lagoons in Rowan County, North Carolina pursuant
to' Water and Air Resources statutes, N.C, Caen. Slat: § 143-211 let se ., N.C. Admin. Code tit.
15A, r. 2B.0100 et se ., and N.C. Admin. Code tit.15A. r. 2H.0100 et M.
2. On May 2, 2005, Petitioner filed a petition for a Contested Case Hearing with the

JAN-17-2006 16:54 YARBOROUGH LAW FIRM 9104332233 P.08
Office of Administrative Hearings,
3. On July 29, 2005, the Honorable Fred G. Morrison, Jr., granted a Motion
to Dismiss in .favor of the Respondent, the North Carolina Department of Environment and
Natural Resources, Division of Water Quality. ,fie Exhibit A.
4. On August 29, 2005, the Petitioner filed a Petition for Judicial Review in this
matter. lee Exhibit B.
5. Pursuant to N.C. Gen. Stat. § 1508-46, Petitioner was to serve copies of the
petition on all parties within ten (10) days of filing the petition with this Court, by the process
defined in N.C. Gen. Stat. § 1A-1, Rule 40)(3) and N.C. Gen. Stat. § IA-1, Rule 6. As of
October 13, 2005, Petitioner has not served a copy of its petition on Respondent.
ti. On September 16, 2005, the Office of Administrative Hearings nailed a certified
copy of its official record to the Clerk of this Court. The record was flied on September 21, 2005.
Exhibit C.
7. Pursuant to N.C. Gen. Stat. § 1508-47 and Rule 9.2 of the Tenth Judicial District
Local Rules, Petitioner's Brief was duo to be filed with this Court and served on all parties within
twenty days after the certified copy of the official record was filed by the Office of
Administrative Hearings. Petitioner's Brief was due on or before October 11, 2005, As of
October 13, 2005, Petitioner's Brief has not been filed with this Court or served on Respondent,
8. pursuant to N.C. Gen. Stat. § IA-1, Rule 41(bXl)', Respondent is
seeking an Involuntary Dismissal of the Petition for Judicial Review due to the Petitioner's
failure to prosecute.
2
�i

r
JAN-14-2006 16:54 YARBOROUGH LAW FIRM 9104332233 P.09
WHEREFORE, Respondent prays this Court grant this Motion to DisniiSs pursuant to
Rule 41(b) because the Petitioner failed prosecute this action, by failing to serve a copy of its
Petition on Respondent in accordance with the rules prescribed in N.C. Gen. Stat. §15UB-46,
N.C. Gen. Stat. § 1A-1, Rule 4Q)(3), and N.C. Gen. Stat, § 1A-1, Rule 6. Further, Respondent
prays this Court grant this Motion to Dismiss because Petitioner failed to file its brief, in
accordance to the rules prescribed in N.C. Gen. Stat. §150B-47,.N.C. Gen. Stat. § IA -I, Rule 6
and Rule 9.2 of the Tenth Judicial District Local rules. Respondent also prays for such other
rclief as this Court may deem just and proper.
Respectfully submitted this the 13' day of October, 2005,
RO'Y COOPER
Attorney General
Stormie D. Forte
Assistant Attorney General
State Bar No. 28525
N.C. Department of Justice
Environmental Division
Post Office Box 629
Raleigh, NC 27602-0629
[phone]
-ATTORNEYFOR RESPONDENT
3
8

JAN-17-2006 16:55
YARBOROUGH LAW FIRM.
9104332233 P.10
e
E IFIC L OF SERVICE
This is to certify that a copy ofthe faregoingRESPONDENT'S MOTION TO DISMISS was
served on the Attorney for Petitioners by depositing a copy in the United States Mail, first class,
postage prepaid, addressed as follows:
H. Addison Winters `
The Yarborough Law Firin
115 East Russell Street
Fayetteville, NC 28301
This the 13`h day of October, 2005.
ROY COOPER
Attorney General
Stomlie D. Forte
Assistant Attorney General
4

JAN-17-2000 16:55 YARBOROUGH LAW FIRM 9104332233 P.11
r• FIRED �,, AESPONDENM
owlcrk OF EXHI r
. ADMINISTRATIVE 1IRARINCS A
• 7•:9-200S9;sS:00An1
STATE OF NORTH CAROLINA IN' TIIE OFFICE, OF '
ADMINISTRATIVE HEARINGS
COUNTY OF CLEVELAND 05 EHR 0718
ALCHEM, Inc. )
Randall Andrews )
Pcti tioncr )
FINAL DECISION
'VS. ) ORDER OF DISMISSAL
N. C. Department of Environment and )
Natural Resources )
_Respondent )
Upon consideration of Resporident's2 Motion to Dismiss on the grounds that the petition
was untimely filed and that the Office of Administrative Hearings lacks subject matter
jurisdiction, with good cause shown, the undersigned GRANTS the Respondent's Motion to
Dismiss.
It is hereby ordered that this contested case is DISMISSED with prejudice.
NOTICE
This Final Decision is issued under the authority of - N.C. Gen. Stat. § 150B-36(e).
Pursuant to N.C. Gen. Stat. § I SOB-45, any party-Mshing to appeal the Final Decision of the
Administrative Law Judge may commence such appeal by filing a Petition for Judicial Review in
the Superior. Court of Wake County or in the Superior Court of the county in which the party
resides, The party Seeking review must file the petition within-30 days after being served with
a written copy of the Administrative Law Judge's pecision and Order.
N.C. Gen. Stat. § 15OB-47 requires the Office of Administrative Heaiings to file .the
official record in the contested case with the Clerk of superior Court within 30 days of receipt of
the Petition for Judicial Review. To ensure the timely filing of the record, the appealing party
must send a copy of the Petition for. Judicial Review to the O#iice of Administrative Hearings at
the time the appeal Is initiated.
This the 29th day of July, 2005,
3 c
Fred Cf. Morrison Jr.
Senior Administrative Law Judge
I ()

JAN"17-2006 16:55 YARBOROUGH LAW FIRM 9104332233 P.12
NORTH CAROLINA
WAKE COUNTY
` 11 RESPONDENT'S
EXHIBIT
��.. r
IN THE GENERAL COURT OF JUSTIC
r n ri 9§UBERJOR COURT DIVISION
Tlt NO.; 05 CVS
Alchem, Inc. )
Randall Andrews, )
Petitioner/Appellant )
vs. )
NORTH CAROLINA DEPARTMENT OF )
ENVIRONMENT AND NATURAL )
RESOURCES )
Respondent/Appellee, )
PETITION FOR JUDICIAL RX VIEW
OF FINAL DECISION ORDER OF
DISMISSAL
COMES NOW Petitioner/Appellant, Alchem, Inc., (hereinafter "Alchem') by and
through counsel, pursuant to N.C. Gen. Stat, §15.0B-45, seeking judicial review of a final
decision under Article 4 of Chapter 150B entered by Senior Administrative Law ,fudge Fred G.
Morrison, Jr. in the Office of Administrative Hearings, 05 EHR 0718, on July 29, 2005, a copy
of which is attached hereto as Exhibit A1.
In further support thereof, Alchem alleges and says as follows:
1. Alchem is a corporation organized under the laws of the state of North Carolina
with a principal place of business in Cleveland County, North Carolina.
2. Respondent is an agency of the State of North Carolina.
. 3. A permit (No. WQ0002702) ("the Permit") was issued by DENR to Alchem on
December 28, 2004, effective until Noveinber30, 2009.
4. The Permit was a renewal of a previous permit issued on January 2), 1999.

JAN-17-2006 16:55 YARBOROUGH LAW FIRM 9104332233 P.13
5. The Permit flnd a cover letter were received by Alchem on January 18, 2005 and
the permit is attnr)ted hereto as Exhibit A2 and the terms of \r•hich are incorporated by reference
herein.
6. On February 10, 2005, and March 8, 2005, Alchem WNW to 'Alan W. Klimek,
P.E., Director of Aquifer- Protection Section, Division of Water Quality in Raleigh, Copies of
these 2 letters are attached as Exhibits B and C and the terms of which are incorporated by
reference herein. The letters delineated questions and objections regarding certain; portions of
the renewal permit. The letters asked for an extension of time in order to meet with Mr. Klimek
to discuss items in the permit that were vague, incorrect and/or to which Alchem objected.
7. The ongoing communications continued and on April 22, 2605, ]Ellen Huffman,
Environmental Specialist from the Mooresville Regional Office responded to the February and
March 2065 letters. In that letter, DWQ admitted that there were "factual errors regarding the
permit system description. These errors will be corrected and a corrected copy will be sent to
[Alchem] in the near future."
8. On April 29, 2005, Alchem sent a Ietter to Office of Administrative Hearings,
attached hereto as Exhibit D and the terms of which are incorporated by reference herein,
explaining the steps that had been taken by Alchem to address. Mooresville DWQ's questions
and outlining Aichem's prior requests for an extension of time as well as stating Alchem's
intention to appeal the permit as issued in that Alchem was not advised about new DWQ
requirements until January 18, 2005.
9. On May 2, 2005 Alchem filed a Petition for Contested Case pursuant to N.C. Caen.
Stat. 150E-23(a) and the Office of Administrative Hearings accepted the same.
M

JAN-17-2006 16:56
YARBOROUGH LAW FIRM
•.1
9104332233 P.14
10. VENR challenged the Petition in its "Motion to Dismiss in Lieu of Prehearing
Statement," cited on or about \•lay 25, 2005, on technical grounds (i.e., not as to the substance of
Alchem's objections).
11. Oral arguments regarding the matter were conducted in [June or July) 2005,
12. On July 21, 2005, Judge Morrison issued a "Final Decision Order of Dismissal"
granting DENR's Motion to Dismiss on the grounds that the petition was untimely filed and that
the Office of Administrative Hearings therefore lacked subject matter jurisdiction to hear the
case,
13, Alchem takes exception to the Motion to Dismiss, which is based on the
technicality of a "late filing." Alchem clearly sought previous extensions of time so that it could
continue negotiations with DWQ.. (See letters of Ale hem to DWQ dated February 10, 2005,
March 8, 2005 and April 29, 2005).
.14. Certainly the taw doss not favor resolving disputes on procedural issues rather
than on substantive issues. See Davis X. 'Williams, 588 F.2d 69 (4`i' Cir." 1978); Wright do Miller,
Federal Civil Practice and Procedure §I217 (policy of the Federal Rules of Civil Procedure is to
facilitate a decision on the merits rather than on pleading technicalities; dismissal with prejudice
is an extreme sanction that needs to be examined carefully). Further, the court reviewing a final
decision may reverse the agency's decision if It is arbitrary or capricious. Lewis is. N.C.
Department of Uama Resources, •92 N.C. App. 737, 375 S.E.2d. 712 (1989). in addition, any
agency decision infected by consideration of arbitrary and capricious matters which substantially
affect a party's rights violates N.C. Gen. Stat. J 150B-51(6) regarding scope of review and cannot
be affirmed. General Motors C2vs� I?ontiac Motor Division vs.. Klrtlaw, 78 N.C. App. 521,
338 S.E.2d 114 (1985).
3
13

• JRN-17-2006 16:56 YARBOROUGH LAW FIRM .9104332233 P.15
' In the instant case, Mooresville DWQ is using an arbitrary tiling deadline to deny
Alchem's right to substantively challenge the new requirements of the permit issued. Jibe
entirety of the order (other than the avenues of appeal) is, "upon consideration of Respondents ,
Motion to Dismiss on the grounds that the petition wns untimely filed and that the Office of
Administrative Ilcarings Incks subject matter jurisdiction, with good cause shown, the
undersigned (Judge] GRANTS tlbe Respondent's Motion to Dismiss." This 39-word decision is
devoid of any legal reasonibg other'than it was "with good cause shown." There are no findings
of fact or conclusions of law: There is no apparent rationale for the decision other than
"untimely" filing. There is no discussion of the ongoing communications between Alchem and
DWQ; there is no finding of any prejudice to DENR in considering this case on the merits.
Them is no delineation of the oral arguments made before Judge Morrison. It is difficult to see
how the appellate judge can, as that Judge is required to do, consider the "whole record" when
the record is devoid of findings of fact and conclusions of law. See Brooks v. Rebarco Inc. 91
N.C. App. 459,372 S.E-2d 342 (1988).
15. A. court reviewing a final decision may reverse the agency's decision if it is
ati'ected by an error of law. An alleged "error of law" exists if a conclusion of law entered by an
adfninistrative agency is not supported by findings of fact entered •by the agency or if conclusion
of law does not support the decision of the agency. Imnloyment Security Commission of North
. Carolina vs. Pearce 122 N.C. App, 313, 470 S.E. 2d 63, review allowed and'remanded, 345 N.G. .
640,483 S.E. 2d. 706, on remand, 128 N.C. App. l; 493 S.E. 2d 466 (1996). In the instant case
there were ilk findings of fact made by the agency; there were no conclusions of law made by the
agency. This is an "error of law" as held in the Pearce case.
4
14

JAN-17-2006 16:56 YARBOROUGH LAW FIRM
9104332233 P.16
I7. The appellate court should cither reverse the agency's decision in this matter due
to ap error of low aril clue to cite decision being arbitrary or capricious under N.C. Gen. Stat.
§150B-51(3), (4), (5) arid/or (6); or, at a minimum recjand the matter to the agency to make
findings of fact and conclusions of law supporting the agency's decision.
WHEREFORE, Alchem prays that this Court, sitting as an appellate court, reverse the
agency decision 05 HER 0718, Cleveland County, N.C. entered July 29, 2005 (Alchein. Inc. vs.
N.C. Department of Environments Natural Resources, due to the agency's final decision, or in
the alternative, that this Court remand the agency decision to the administrative law judge so the
judge can enter findings of facts and conclusions of law in this matter.
This the 25`b day of August 2005,
THE YAR130ROU011 LAW FIRM
r
H. ADDISON WINTERS
Attorney for Alchem, Inc.
P.O. Box 705
Fayetteville, NC 28302
[phone]
5
n
15

a~ JAN-17-2006 16:56
YARBOROUGH LAW FIRM
�.r
9104332233 P.17
CERTIFICATE OF SERVICE
I do hereby certify that a copy of the foregoing Petition for Judicial Review of Final
Decision Order of Dismissal has been duly served upon the below named individual by
depositing the same in the mail in the U.S. Postal Office to the following address,
Vicky Bullard
Office of Adminlstrotive Huarings
6714 Mail Service Center
Raleigh, NC 27699-6714
This the day of August, 2005.
fl, Pk- Ik5 L.. ,
H. ADDISON WINTERS
Attorney for Alchem, Inc.
Post Office Box 705
Fayetteville, NC 29302
[phone]
6

NCDENR MRO Fax:[phone] Mar 23 2005 13:56 P.01
NCDENR
Norte Carolina Department of Envi ronment and Natural Rsources
tdic7ael F. Easley, Geverri cr
From:
FAX COVE', SHEET
Division: V U�
Section:
Date: 712/ :2- 3
To:
Fax Number: � % l — —'� / S� D
Number of Pages (baciudiug cover) I D
Subject:
7G`,
610 East Center Avenue, Suite 301, Mooresville, North Carolina 28115
Phone: [phone] FAX: [phone] Internet: www.enr.sWe.nc.us
Wiliiarn G. Ross Jr., SacrelarY
No�`rthCaxolina
An Eq�!et Opportunity ! Ahirmalive Action Employer 710.1.1. Recy/ lad 110 .A Post Consunlef Paper ,

NCDENR MRO
Fax:[phone] Mar 23 2005 13:56 P.02
Mr. Randall Andrews
.A.lchem, Jno.
8135 Red Road
Rockwell, NC 28138
Dear Mr_ Andrews:
'O Michael E Ea;ley, Governor
William G. Ross Jr., Secretary
North Carolina Department of Environment s: d Natural Resources
Alan W. Klimek, P.E., Director
Division of Water Quality
NC pEP'i. OF �NVIRONMfJd7
December 28, 2004 p NATRUE V�� RCf
JAN 14 2005
iul00p,Es OU pN w�T�R S �T�ON
ICF-
t)W0,GR
Subject;. Permit No. WQ0002702
'.• Al61j6m, Incorporated
Industrial Recycle -Bauxite Process
Rowan County
la' accordance with your request for renewal received September 23, 2004, we are for%vardmg herewith .
Permit No. WQ0002702, dated December 28, 2004, to ,A•lchelm, Inc.. for the continued operation of the three (3)
lagoons recycle system..
issuance until November 30, 2009, shall -void Permit No.
This permit shall be effective from the date of
WQ0002702 issued January 21, 1999, aznd shall be subject to the conditions and limitations as. specified therein.
Please pay particular attention to the znonitorutg requirements in this permit. Groundwater sampling is now
required in monitor wells MW-1, MW -2, and MW-3 and surface water sampling will be performed on the stre
behind the property every February, June, and October for Total Dissolved Solids, pH, Sulfates,am
Specific
Conductivity, Aluminum, Total Suspended Solids, and water level. A scaled map of the facility must be prepared
and submitted to the Division- The recycled water will be required to have a pH of not less than 6.0 as it leaves
the wash area- and goes into the storage lagoon, .A. site life estimate and a long range plan for future residuals
disposal are also required. The material removed from, Lagoons l & 2 during the next lagoon cle-anout is required
to have pH readings taken and documented, and the liners of each lagoon are to be inspected and. tested (as
necessary) by a Professional Engineer. Repairs are to be made as needed. The permittee is required to seek
altemate disposal/re-use options for the'fill and submit a proposed schedule for their iinplementation. The City
Water Supply Line is required to be re -located to the upper perimeter of the residual fill area. Failure to establish
an, adequate system for collecting and maintaining the required operational information will result in future
compliance problems. The berm which has beeu constructed around the residual fill area is to be maintained so as
to keep the fill and/or accumulated rainwater from leaving the fill area.
This permit is being renewed by itself and is not being combined with Permit No. WQ001633$ at this
time, as the application for the renewal of Permit No. WQ001633 8 has not yet been, received by the Division.
. No Caro��Da
' �iurally
Aquifer Protection Section 1636 Mail Service Center Raleigh, NC 27699-1636 Phone [phone] Cusrorrrer Service
lntcmct: b2o.enr.state.nc.us 2729 Capital Boulevard Raleigh, iv`C 27604 PAX (919) 715-60ab 1 877�23-6742
An Equal Opportunity/Afr"mative Action Employer— 50% Recycledll0% pbsi co6sumer Paper

NCDENR MRO Fax:[phone] Mar 23 2005 13:56 P.03
A Notice of Violation was issued against the facility under Permit No. WQ0002702 on January 7, 2001
:for violations of State Groundwater Quality Standards as evidenced by the laboratory analyses of groundwater
samples taken during the course of rnoruitori)ag on=site monitor wells.
A. Notice of Violation was also issued against the facility under Permit No. WQ0002702 on May 12, 2003
in response to a release of residuals into a drainage/wooded area and an intermittent stream. The permittee was
cited for failing to properly operate and maintain the facility as a non -discharge ;Facility, failure to cease reuse
operation once nuisance conditions existed, failure to provide adequate provisions to prevent surface runoff from
conveying. � olluf&ats into surface waters, and failure to notify the Division of the residuals release into the
receiving stream.
If any parts, requirements, or limitations contained in this permit are unacceptable, you have the right to
request an adjudicatory hearing upon written request within thirty (30) days following receipt of this permit_. This
request must be in the form of a written petition; conforming to Chapter 150B of North Carolina General Statutes,
and.filed with the Office of A,dzainistrative Hearings, 6714 Mail Service Center, Raleigh, NC 27699-6714.
Unless-sueb demands are made this permit shall be final and binding.
If you need additional information concerning this matter, please contact David Goodrich at (919) 715-
6162_
Sincere
Wan W. Klimek, P.E.
cc: Rowan County Health Department
Moo e ville'Rogional Office,'Aquifez Protection.Section
Technical. Assistance and Certification. Unit
Aquifer Protection Central Files'
Permit Files

NCDENR MRO Fax:[phone] Mar 23 2005 13:57 P.04
NORTH CA.ROJLINA
ENVMONINIENTA.X,11 AI AGEN1iENT CON13YRSSION
DEPARTiVIENT OF EINNMONNIENT AND NATURAL RESOURCES
RA,LEIGH
RECYCLE SYSTEM PERMCT
In accordance with the provisions of Article 21 of Chapter 143, General Statutes of North Carolina as amended,
and other applicable Laws, Rules, and Regulations
PERMISSION IS HEREBY GRANTED TO
,A►lchem, Incorporated
Rowan County
IFOR THE
continued operation of a wastewater recycle system consisting of 3 settling lagoons to serve Alehern, Inc., with no
discharge of, wastes to the surface waters, - pursuant to the application received September 23, 20041 and in
conformity with the project plan, specifications, and other supporting data'subsequently filed and approved by the
Department of Environment and Natural Resources and considered a part of this permit,
This permit shall be effective from the date of issuance until November 30, 2009, shall void Permit No.
WQ0002702 issued January 21, 1999, and shall be subject to the following specified conditions and limitations:
1. This permit shall become voidable unless the facilities are constructed in accordance with the conditioas,of
this. permit, the approved plans and specifications, and other supporting data.
2. This permit is effective only with respect to the nature and volume of wastes described in the application
and other supporting data.
3. The facilities shall be properly maintained and operated at all times,
4. Thi.s permit is not transferable. In the event there is a desire for the facilities to change ownership, or there
is a name change of the Pennittee, a formal permit request must be submitted to the Division of Water
Quality (Division) accompanied by an application fee, documentation from the parties involved, and other
supporting materials as may be appropriate. The approval of the request will be considered on its merits
and may or may not be approved.
5_ In, the event that the facilities fail to perform, satisfactorily; including the creation of nuisance conditions, the
Perrnittee, shall take immediate corrective action, including those actions that may be required by this
Division, such as the construction of additional or replacement treatment or disposal facilities.
6. The residuals generated f m these treatment facilities must be disposed in, accordance with General Statute
143-215.1 and in, a manner approved by the Division..
7. The issuance of this permit shall not relieve the Pertnittee of the responsibility for damages to surface or
grouudwaters resulting from the operation of this facility.

NCDENR MRO Fax:[phone] Mar 23 2005 13:57 P.05
8. The facilities shall be effectively maintained .and operated as a non -discharge system to prevent the
discharge of any wastewater resulting from the operation of this facility.
9. Diversion or bypassing of untreated wastewater from the treatment facilities is prohibited.
10. Freeboard in all of the lagoons shall not be less than two feet at any tune- ,
11. Waste -level gauges, to monitor waste levels in the settling lagoons, shall be installed within 60 days of
issuance of this permit. These gauges shall have readily visible permanent markings indicating the '
maximum liquid level at the top of the temporary liquid storage volume, minimum liquid level at the
bottom of the temporary liquid storage volume, and top of the dam elevations. Caution must be taken not to
damage the integrity of the liner when installing the gauges.
12. A protective vegetative cover shall be established and maintained on*all n �hosio asi nee embankments
(outside toe of embankment to,maximum pumping elevation), berms, pipe
surface water diversions. Trees,
Earthen basin mbankment are-asther Woody vegetation shallbe kepall not be t owed or otherwwed to grow on ise
earthen basin dikes or embankments.
controlled and accessible-
13. 'within ninety (90) days of permit issuance, the recycled system shall be required to keep the recycled water
at a pH of not less than 6.0 Standard Units as it leaves the wash area and goes to the storage lagoon.
14. Within ninety (90) days of permit issuance, the peizxuttee shall submit a site life estimate for the fill area. .
it issuance, the perrnittee shall submit a long-range plan for future residuals
15.' Within ninety (90) days of perm
disposal that shall include a timetable for implementation.
ding
16.. During the upcoming clean out of Lagoons 1 & 2 (at lrialuled for the spring season of 2005), a pH removed from he lagoon and placed in thesand
shall be taken and documented on every load of zn days of completion of the
fill- area. This information shall be conveyed to the Division within thirty (30 .) y . coin p
clean out procedure, '
17. At the conclusion of the clean out of Lagoons 1 nnecessary)
(scheduled for
e Profess onal Engineer.ring season of Repairs to the
linens of the lagoon shall be inspected and tested ( aY) y
liners shall be made as needed and prior to the-iceresumption of use.
cility. An
18. The permittee shall actively seek alternate disposal/re-use options
its for the fill prodi ationashall bat ee idenh�
alternate means of disposal, along w ith' a pd
roposed schedule f p
within one (1) year of permit issuance and reported by letter to the laivisiozz's Central Office at the p�clui er
Protection Section, 1636 Mail Service Center, Raleigh, NC 27699-1636 and to the Mooresville Regional
Suite 310, Mooresville, NC 28115.
Office at the Aquifer Protection Section, 610 East Center Avenue/
k9. The City Water Supply Line shall be re -located to the'upper perimeter of the residual fill area within one shall (be
year o£ permit issuance. Any problems with implementing this condition in a timely
reported al letter to the 9-1636 and entral office at the A
o the lvlooresville Regional Office at the Aquifer Proquif-,r Protection Section, t ction Section,
Center, Raleigh, INC ..7699-1636 an .
610 East Center Avenue/ Suite 301, Mooresville, NC 28115.
20. Any monitoring deemed necessary by the Division to esshall be followed. surface and - ground water protection will be
established and an acceptable sampling reporting schedule
ittee to insure
oper
21. Adequate inspection, maintenance,
and cleaninghas beeneconstructedprovided baround he y the residual fill area shall be
operation of he subject facilities. The bean the fill area.
maintained so as to keep the :ill and/or accumulated rainwater from leaving
2

NCDENR MRO Fax:[phone] Mar 23 2005 13:57 P.06
22.* The Permittee or his designee shall inspect the wastewater recycle facilities to prevent malfunctions and
deterioration, operator, errors and discharges which may cause or lead to the release of wastes to the
environment, a threat to human health, or a nuisance. The Permittee shall maintain an inspection log or
summary including at least the date and time of inspection, observations made, and any maintenance,
repairs, or corrective actions taken by the Permittee. This log of inspections shall be maintained by the
Pcrtnittcc for a period of three years from the date of the inspection and shall be made available to the
Division or other permitting authority, upon request.
23. Any duly authorized officer, employee, or representative of .the Division may, upon presentation of
credentials, enter and inspect any property, premises or place on or related to the recycle system at any
reasonable time for the purpose of: determining compliance with this permit, may inspect or copy any
records that must be maintained under the terms and conditions of this permit, and may obtain samples of
groundwater, surface water, or leachate.
24. The annual administering and compliance fee must be paid by the Permittce within thirty (30) days after
being billed by the Division. Failure to pay the fee accordingly may cause the Division to initiate action to
revoke this permit as specified by 15A NCAC 2H .0205. (c)(4).
.25. Failure to abide by the conditions and limitations contained in this permit may subject the Permittee to an
enforcement action by the Division in accordance with North Carolina General Statute 143-215.6A to 143-
215.6C.
26. The issuance of this permit does not exempt the Permittee from complying with any and all statutes, rules,
regulations, or -ordinances which may be imposed by other government agencies (local, state,. and federal)
which have jurisdiction, including but not limited to applicable river buffer rules in 15A. NCAC 2B.0200,*
erosion and sedimentation control requirements in 15A NCAC Chapter. 4 axzd under the Division's Gencral
Permit NCGQ 10000, and any requirements pertaining to wetlands under 15A NCAC 2B .0200 and 2H
.0500.20.
27. A set of approved plans and specifications for the subject project roust be retained by the Permittee for the
life of this project.
28. Non.compli=ce Notification:
The Perzxrittee shall report by telephone to the Mooresville Regional Office, telephone number (704) 663-
1699, as soon as possible, but in no case more than 24 hours or on the next working day following the
occurrence or first knowledge of the occurrence of any of the following:
a_ ,Any occurrence at the wastewater treatment facility which results in the treatment of significant
amounts of wastes which are abnormal in quantity or characteristic, such as the dumpix2g of the contents
of a basin or tank, the known passage of a slug of hazardous substance through the facility, or any other
unusual circumstances;
b. Any process unit failure, due to known or unknown reasons, that renders the facility incapable of
adequate wastewater treatment, such as mechanical 'or electrical failures of pumps, aerators,
compressors, etc.;
c. Any failure of a pumping station, sewer line, or treatment facility resulting in a by-pass directly to
receiving waters without treatment of all or any portion of the influent to such station or facility; or
d. Any time that self -monitoring information indicates that the facility is not in compliance with its permit
limitations.

NCDENR MRO Fax:[phone] Mar 23 2005 13:58 P.07
Occurrences outside normal business hours•may also be reported to the Division's Emergency Management
personnel at telephone number [phone], or [phone]. Persons reporting such occurrences by
telephone shall also file a written report in letter form within five (5) days following first lrnowled0 of the
occurrence. This report must outline the actions taken or proposed to be taken to ensure that the problem
does not recur.
29.. Upon classification of the wastewater treatment and spray irrigation facilities by the Water Pollution
Control System Operators Certification Commission (WPCSOCC), the Permittee shall designate and
employ a certified operator to be, in responsible charge (ORC) and one or more certified operator(s) to be
bacic-up ORC(s) of the facilities in accordance with 15A NCAC 8G .0201. The ORC shall visit the
facilities in accordance with 15A NCAC 8G .0204 or as specified in this permit and shall comply with all
other conditions specified in These rules.
30. The recycle lagoons shall not be located within 100 feet of water supply wells.
31. Within sixty (60) days of permit issuance, the perrnittee shall submit two original copies of a scaled site
map (scale no greater than 1,=l00'); however, special provisions may be granted upon prior approval for
large properties. The map(s) must include the following information:
a. The location and identity.of each Monitoring well.
b_ The location of major components of the waste disposal system.
e. The location of property boundaries within 500 feet of the disposal area(s).
d. The latitude and longitude of the established horizontal control monument. a relative
e. The elevation of the top of the well casing (Which shall be known as the "measuring point")
to a common datum. .
f. The depth of water below the measuring point at the time the measuring point is established.
g• The location of Review and Compiiance Boundaries.
h_ The date the reap is prepared and/or revised_
32. Control monuments shall be installed in such a manner and -made of such materials that the monument will
not be destroyed due to activities that may take place . on the property. Maps and any supporting
documentation shall be sent to the Aquifer Protection Section's Central Office at 1636 Mail Service Center,
Raleigh, NC 27699-1636, and to the ylooresville Regional Office at the Aquifer Protection Section, 610
East Center Avenue/ Suite 301,1vlooresville, NC 28115.
The permittee is responsible for the geographic accuracy of any map submitted, however produced
JAW-2 MlV-3, and the stream behind the property shall all be sampled every
33. Monitor wells NEW-1, Parameters:
February, June and October for the following`` p
Total Dissolved Solids pH
Sulfates (SOc) Specific Conductivity
.A1Luninum Total Suspended Solids
Water Level
The measurement of water levels must be trade prior to sampling for the remaining parameters. The depth
to water in each well shall be measured from the surveyed point on the top of the casing.
The results of the sampling and analysis shall be. ereccTe� 5 �o�) �� op � o�the laboratoryn of tanaly�
dwater
Quality Monitoring. Compliance Report Form
attached by the Division's Aquifer Protection Section at the follouZng address on or before the last working
day of the month following the sampling month:
4

NCDENR MRO Fax:[phone] Mar 23 2005 13:58 P.08
NCDENR.-DWQ
information processing Unit
1617 Mail Service Center
Ra.leigb, NC 27699-1617
Updated blank reporting forms may be downloaded from the web site for the Division's Aquifer Protection
Section at http•//gw ehnr state.nc.us/ or requested from the, address listed above.
34. The COMPLIANCE BOUNDARY for the disposal system is specified by regulations in 15A NCAC 2L,
Groundwater Classifications and Standards. The Compliance Boundary for the disposal system individually
permitted on or after December 30, 1983 is established at either 250 feet from the waste disposal area, or 50
feet within the property boundary, whichever is closest to the waste disposal area_ An exceedance of
Groundwater Quality Standards at or beyond the Compliance Boundary is subject to remediation action
according to 15A NCAC 2L .0106(d)(2).
35. The REVIEW BOUNDARY is established around the disposal system midway between the Compliance
Boundary and the perimeter of the waste disposal area. Any exceedance of standards at the. Review
Boundary shall require action in accordance with 15A NCAC 2L .0106(d)(1).
36. Any additional groundwater quality monitoririg, as deemed necessary by the Division, shall be provided.
37. Permittee, at least six (6) months prior to the expiration of this permit, shall request its extension. Upon
receipt of the request, the Commission will review the adequacy of the facilities described tberein, and if
warranted, will extend the permit for such period of time and under.such conditions and limitations as it
may deem appropriate.
Permit issued this the 22nd day of December, 2004
NORTH OLNA ENVIROINT MENTAL MANAGEMENT COMlv1•.ISSION
Alan, W, YEmelc, P.E., Director
bivision of Water Quality
By Authority of the Environmental Management Commission
Permit Number WQ0002702

NCDENR MRO
Fax:[phone]
Mar 23 2005
13:59 P.09
1.ALCHEM,
INC.
Corporate Office
Sales and Manufacturing
2042 Buie PNIadelphus Road
8135 Red Road
Red Springs, NC 28377
Rockwell, NC 28138
TeL. [phone] ^- Fax [phone]
Tel. [phone] — Fax [phone]
rfa@s=r.nst
pdtye.alchem@cbHnternetnet
March 8, 2005
Mr. Alan W. Klimek, P.E.
Director
Aquifer Protection Section
DIVISION OF WATER QUALITY
512 North Salisbury Street
9'`. Floor
Raleigh, NC 27604
Subject: Permit#: WQ0002702
Dear Mr. Klimek
NC iDEr I.OF El\tV rtul14MENT
AND NATURAL RESOURCE$
RECEIVED
MAR 2 3 2005
MOORESVILLE REGIONAL OFFICE
DWO-GROUNDIPJATER SECTION!
We have had a chance to review the proposed permit. We have questions and objections to the
following parts.
We object to the necessity of extensive data generation for the water sampling in the stream. We
request that this water sampling be done yearly. We plan to block any water from leaving the
sandy area and use this water iz1 our process.
No. 11 — We have no idea what these gauges are and we can visually look at the levels. We see
no real reason to install them. Our standard operating procedures provide for us to leave plenty of
operating room in the storage basins.
Additionally, we do not have any waste on our property. All material is beneficially used.
13. This is extremely difficult and we would propose to use a ph of 2 as a benchmark. If we
add Lime or any other Alkali to the system we cannot use the Aluminum value to put
back into the process. Our rainwater is ph 5.0 or less.
14, Which fill area?
15. We wish to continue using the sand as Alchem, Inc. intends to build on the level land that
has been generated. Alchem, Inc. is using this sand for a beneficial use. There is no
waste. We plan to build a production facility on this built up area.
16. Now can one take the ph of a solid?
17. Alchem, Inc. standard operating procedure when removing sand from the Lagoons is to
stay two feet away from the walls and bottom. Therefore, there is no breech and no way
to examine the liner. it was originally inspected and certified by a professional engineer.
There is no reason to think any change has occurred.
18. Alchexx),, Inc. is not disposing of anything, Alchem, Ziic. is using the sand and using the
rainwater from the berm area.
UA -

NCDENR MRO Fax:[phone] Mar 23 2005 13:59 P.10
ALCHEM, INC.
Corporate Office Sales and Manufacturing
2042 Buie Philadelphus Road 8135 Red Rbad
Red Springs, NC 28377 Rodkwell, NC 28138
TeL [phone] — Fax 910-M-5789 Tel. [phone] -- Fax [phone]
[e-mail] ' pdrye.alchemQcbUntemet.net
19. What is the point of moving a city water line? This is process water only. Also, the city
water line has been cut off fXOm the facility and turned off.
29. We do not have a wastewater treatment and spray iz7Cigation facility. Therefore, we feel
there is zio need for this provision.
31. We are not familiar with this item and do not understand why we should be -required to
do all of this.
I feel that this permit if enacted would put our company out of business. It is economically
detrimental to us and our employees. I would like to point out that in your letter you stated that a
Nov was issued against our facility in January 7, 2001 for violations of State &oumdwater
Quality Standards. I had to hire a consultant and spend $ 4,000.00 to prove that the person
issuing this Nov was wrong. After proving that it was wrong I expected to receive a letter of
apology. I.also thought that your office might offer to reimburse our company for our money and
time spent on this matter. Instead, I received a letter saying that if we were every caught doing
something wrong we would be severally penalized.
The Nov in May 12, 2003 was caused by tmusually large amounts of rain that just'over whelmed
us. We have put up a beano that should keep this from every happening again. I look forwaxd to
meeting with. you.
Best regards,
A.,CI-MM, INC.
Randall Andrews,
Sales manager
vll

NCDENR MRO
em0049$ eRh delphW i{Cdcl
ItedSP?s�IyC 26377 910-843^5789
Tel. 910-84s-== " Fax
Fax:[phone] Mar 21 2005 16:18 P.01
ALCIAEM9 'NC
_ BAid
Rockweft, NC 2813E
TeL 704-279' 908 — Fix�0 4-2N-8413
p�ypAchem�cbi
February 10, 2005
Mr. Alan's - I<I'mek, p.E
Director
Aquifer protection Section
D Borth Sa1� urY Street
t A
512
gam. Floor
Raleigh, NC a76o4
Dear Mr.
'gyred our permit No.: WQ0002702- Your letter s �atjdD woeul�d like to
We received and to all of the
eve did not receive the permit untjlQ era 3�r1'na and respond 200 �• that we will need
ask fur an extension of time of 90
changes. die feel that because of r all of the extensive Chang
this extra time. Thank you for y P
Best regards? •:
A,L.CHEM, INC-
ME
Wayne D Ye-,
'Plant }Ulanager
.rll ,
a
Mr, John Reuscher
CC'.
�`
widA%Ia Services M
7.,F`
'..
R.
Q
' � m�ZC-13
Z�8370 ��

f
M E M O
From the desk of...
,lianet D. Limch
paralegal
Department of Justice
90d 1 Mail Scrvice
Centcr
RAlcish C Z7699.900)
Tel: t19) 71&6948
Fax: [phone]
MEMO
To: Dave Goodrich, Shannon Thornbug, Kim Colson
Ellen Huffman and Andrew Pinter
Subject: ALCHEM Inc, Randall �1ndrews v. North Carolina Department of
Environment and Natur#Resources, Division of Water Quality
05 EHR 0718
Date: August 2, 2005
COMMENTS:
Attached please see the
G. Morrison for the above -referenced
of the attached order to file a Petition f
2005 which means that a petition must
(depending on which day this week he
within the first week of September 20
close our file.
If you have any
aal Decision Order of Dismissal signed by Judge Fred
e. Petitioner has 30 days after being served with a copy
Judicial Review. We received this order on August 2,
fined in Superior Court on or about September 1, 2005
,eives this order). If Petitioner does not file anything
, we will take no Rather action on this case and will
please contact Stormie and copy me via email.
PLEASE CIRCULATE To EVERYONE AT YOUR FAX
NUMBER. THANKS
ZO 'd zO: Z I SO, Z 6nd 99Z9-9TZ-6T6: x23 NOI 33S QNd'l '8 2131UM

FILED
O Vi" of
ADMINISTRATIVP HEARINGS
7.29.200.59:SS:t1(1 kM
STATE OF NORTH CAROLINA
COUNTY OF CLEVELAND
ALCHEM, xr.tu.
Randall Andrews
Petitioner
VS.
N. C. Department of Environment and
Natural Resources
IN 71IE OFFICE OF'
ADMINISTRATIVE HEARINGS
05 EHR 0718
FINAL DECISION
ORDER OF DISMISSAL
Upon consideration of Respondent's Motion to Dismiss on the grounds that the petition
was untimely filed and that the Office of Administrative Hearings lacks subject matter
jurisdiction, with good cause shown, the undersigned GRANTS the Respondent's Motion to
Dismiss.
It is hereby ordered that this
This Final Decision is issuf
Pursuant to N.C. Gen. Stat. § 150B
Administrative Law Judge may comr.
the Superior Court of Wake County
resides. The party seeking review mi
a written copy of the Administrative I
case is DISMISSED with prejudice.
NOTICE
under the authority of N.C. Gen. Stat. § 15013-36(c).
any party wishing to appeal the Final Decision of the
ice such appeal by filing a Petition for Judicial Review in
in the Superior Court of the county in which the party
file the petition within 30 days alter being served with
v Judge's Decision and Order.
N.C. Caen. Stat. § 150B-47 re uires the Office of Administrative Hearings to file the
official record in the contested case with the Clerk of Superior Court within 30 days of receipt of
the Petition for Judicial Review. To ensure the timely filing of the record, the appealing party
must send a copy of the petition for Jocial Review to the Office of Administrative Iearings at
the time the appeal is initiated.
This the 29th day of July, 2005.
i
Fred G. Morrison Jr.
Senior Administrative Law Judge
9-0'd ZO:TT S0, Z End 99Z9-9TZ-6T6:Xpd NOI103S QNd-1'8 ARUM

C 0 V E R
SHEET
Froj' e desk of...
Ianet D. Leach
Faralepl
Depa ent orJustice
9001Mai' ServiceCemcr
Raleigh I IC27699-9001
T& 919)716.6948
Fax: [phone]
FAX
To: Dave Goodrich, Shannon Tholrn:bug, Kim Casson
Ellen Huffman and Andrew Winter
Subject: ALC VEM, Inc, ,Randall �ndrews v North Carolina Department of
Environment and Natural Resources, Division of Water Quality
05 EHR 0718
i
Fax Nos: DG, ST & KC - 715-0588
EH & AP - (704) 663-60 0
I
pages: 31 including Cover Sheei
CODA'NENTS:
Please see attached Final T�ecision Order of 15ismissal.
Questions? Comments? gontact Stormie or me.
6
TO 'd ZO: TT SO, Z End
992_9-9TZ-6T6: XPA NOI M GNU-1 '8 dMUM

c��r �. fr cvvJ ic. -ry
li J. �! VJVV FAX
``''Pp•t� 11VL1�L%l ll�e YY(•l, {...Il V:V,-,� ••q•�••� y �.••—
FAX M0. a Plus• 27 O .i2:e31" M PI
A LCHEMJ-NC.
como aw &!Mee
M U4Ic Phb` t= Read
7�, a SW-s. NC 0377,
0•343-21,21— Fax 9104AM7
August 15. 2005
$S and iolC�llpD,
8M Padua
Etna, KC 98138
TCL 704-M-7908 — Fax 7%27WIS
' •--• p�ye•alsdiem@��untetnetnet
9
Us. Sharman Tl9omburg
NMENR
Me* NC
Dear Ms. Thornburg:
Would you please look at our lagoon permi# and sew if them is ar sW way you can relax the
provision having to do with pH of the lagoon water. We had "ken about this proWxon in
Mooresunile at our meeft. The well water that we use to wash the sand is leis. fhan 6.0 and
always has been. l also know that you can rook at our.maniioring wells and see that them
has been no kxrease in the aturninun0 at all. I can send you all of these results if you like.
We also have- the resnrts graph farm for easy vfewing.
Thank you for yojr congderation.
33est regaxd_s,
ALEwHEM, VC
Randall, F: Andres,
Freddent
ams

�OF W ATF9Q Michael F. Easley, Governor
\) (i William G. Ross Jr., Secretary
(� r North Carolina Department of Environment and Natural Resources
Alan W. Klimek, P.E. Director
Division of Water Quality
January 28, 2005 ))g/4 FT
Randall F. Andrews
ALCHEM, Inc.
8135 Red Road
Rockwell, NC 28138
Subject: Permit No. WQ0016338
ALCHEM, Inc. ��
Bauxite Residuals Ruse Program
Rowan County �� \\
Dear Mr. Andrews:
In accordance with your application received on September 30, 2004, we are forwarding herewith
Permit No. WQ0016338, dated January 28, 2005, to ALCHEM, Inc. for the on -site reuse of a silica residual
from bauxite digestion as a fill material.
This permit shall be effective from the date of issuance until December 31, 2009, shall void Permit
No. WQ0016338 issued March 1, 1999, and shall be subject to the conditions and limitations as specified
therein. Please pay particular attention to the monitoring and reporting requirements contained in this permit.
Failure to establish an adequate system for collecting and maintaining the required operational information
will result in future compliance problems.
An Assessment of Civil Pnalties and a Notice of Violation was issued against the facility under Permit
Number WQ0016338 on August 18 and 19, 2003, respectively, in response to a release of residuals into a
drainage/wooded area and an intermittent stream. The permittee was cited for inadequate corrective actions in
response to a release of residuals into an unnamed tributary to Second Creek and the resulting depression of
pH in the water of the tributary.
An earthen berm has since been constructed completely around the fill material area to correct the
problem and to keep the fill on the site. Although the fill is currently contained, the capacity of the enclosed
area is limited, and the permittee is required to submit a site life estimate for the fill area, as well as a long-
range plan for residuals disposal that shall include a timetable for implementation, and actively seek alternate
disposal/reuse options with a proposed schedule for implementation, under the conditions of Permit Number
WQ0002702, issued on December 28, 2004. Permit Number WQ0002702 further requires the earthen berm to
be maintained so as to keep the fill and/or accumulated rainwater from leaving the fill area.
If any parts, requirements, or limitations contained in this permit are unacceptable, you have the right
to request an adjudicatory hearing upon written request within thirty (30) days following receipt of this permit.
This request must be in the form of a written petition, conforming to Chapter 150B of North Carolina General
Statutes, and filed with the Office of Administrative Hearings, 6714 Mail Service Center, Raleigh, North
Carolina 27699-6714. Unless such demands are made, this permit shall be final and binding. N thcaroIina
ahrra!!;
Aquifer Protection Section 1636 Mail Service Center Raleigh, NC 27699-1636 Phone [phone] Customer Service
Internet: http://12o.enr.state.nc.us 2728 Capital Boulevard Raleigh, NC 27604 Fax [phone]
An Equal Opportunity/Affirmative Action Employer— 50% Recycled/10% Post Consumer Paper

If you need additional information concerning this matter, please contact David Goodrich at (919)
715-6162.
Sincerely,
Alan W. Klimek, P.E.
cc: Rowan County Health Department
Mooresville Regional Office, Aquifer Protection Section
Aquifer Protection Section, Central Office
Technical Assistance and Certification Unit
Permit Files
2

,
NORTH CAROLINA
ENVIRONMENTAL MANAGEMENT COMMISSION
DEPARTMENT OF ENVIRONMENT AND NATURAL RESOURCES
RALEIGH
PERMIT FOR THE USE OF RESIDUALS
In accordance with the provisions of Article 21 of Chapter 143, General Statutes of North Carolina as
amended, and other applicable Laws, Rules, and Regulations
PERMISSION IS HEREBY GRANTED TO
Alchem, Inc.
Rowan County
FOR THE
operation of a bauxite residuals reuse program (as structural fill) on Alchem, Inc.'s property at 8135 Red Road,
Rockwell, North Carolina using approximately 3,000 dry tons per year of residuals from the sources listed in
Condition II 2, with no. discharge of wastes to the surface waters, pursuant to the application received on
September 30, 2004, and in conformity with the project plan, specifications, and other supporting data
subsequently filed and approved by the Department of Environment and Natural Resources and considered a
part of this permit.
This permit shall be effective from the date of issuance until December 31, 2009, shall void Permit
No. WQ0016338 issued March 1, 1999, and shall be subject to the following specified conditions and
limitations:
I. PERFORMANCE STANDARDS
1. The residuals program shall be effectively maintained and operated as a non -discharge system to
prevent the discharge of any wastes resulting from the operation of this program.
2. This permit shall become voidable in the event of failure of the residuals program to adequately
protect the assigned water quality standards of the surface waters and groundwaters.
3. The issuance of this permit shall not relieve the Permittee of the responsibility for damages to
surface or groundwaters resulting from the operation of this program.
4. In the event that the bauxite residuals reuse program is not operated satisfactorily, including the
creation of nuisance conditions, the Permittee shall cease the reuse operation and take any
immediate corrective actions as may be required by the Division of Water Quality (Division).
5. Written notification must be submitted to the Mooresville Regional Office, [phone], at least
two weeks prior to any use of residuals within 50 feet of any surface waters.

6. No residuals shall be used within 100 feet of a potable water supply well unless a clay or synthetic
liner is placed over and under the residual during installation. It will be the responsibility of Alchem,
Inc. to verify the position and integrity of the liner prior to backfill. Under no circumstances shall
the residuals be located within 25 feet of a potable water supply well.
II. OPERATION AND MAINTENANCE REQUIREMENTS
The facilities and application sites shall be properly maintained and operated at all times.
2. No residuals other than the following are hereby approved for use in accordance with this permit:
Permit Volume
Source County Number (dry tons/year)
Alchem, Inc. Leached Bauxite Rowan WQ0002712 3,000
Adequate provisions shall be taken to prevent wind erosion and surface runoff from conveying
pollutants from the residuals treatment area onto the adjacent property or into any surface waters.
4. No residuals shall be utilized for land reclamation within one foot of a seasonal high water table
and within three feet of a permanent water table.
No residuals shall be used as pipe bedding for sanitary sewer, storm sewer, or potable water lines.
6. The permittee shall insure that the transportation of the residuals does not cause any adverse
impact, i.e. transport in a leak -proof truck for wet material, ensure that trucks are covered for dry
material, or otherwise protected to prevent any adverse impact resulting from operation.
Adequate provisions shall be taken to prevent any surface runoff from occurring at any active or
dormant residuals unit. If runoff cannot be prevented, a collection system shall be installed with
the capacity to handle runoff from a 24-hour, 25-year storm event. All collected runoff shall be
disposed in a manner approved by the Division.
Adequate provisions shall be taken to prevent wind erosion from conveying pollutants or residuals
from the surface disposal site onto the adjacent property or into any surface waters.
10. Food crops, feed crops and fiber crops shall not be grown on an active residuals unit, unless
approval has been requested and received from the Division.
11. Animals shall not be grazed on an active sewage sludge unit unless approval has been requested
and received from the Division.
III. MONITORING AND REPORTING REQUIREMENTS
1. Any monitoring (including groundwater, surface water, residuals, soil, or plant tissue analyses)
deemed necessary by the Division to insure protection of the environment will be established and
an acceptable sampling and reporting schedule shall be followed.
2. Proper records shall be maintained by the Permittee tracking all application activities. These
records shall include, but are not necessarily limited to the following information:
a. location of residuals utilization
b. volume of residuals disposed in gallons/year, dry tons/year, or kilograms/year
2

3. A residuals analysis shall be conducted twice per year from the date of permit issuance by the
Permittee and the results maintained on file by the Permittee for a minimum of five years. The
residuals analysis shall include the following parameters:
Arsenic
Nickel
Magnesium
Cadmium
Selenium
Sodium
Chromium
Zinc
Manganese
Copper
Barium
pH
Lead
Silver
Phosphorous
Mercury
Calcium
Aluminum
After the residuals have been monitored for two years at the above frequency, the Permittee may
submit a request to the Division for a permit modification to reduce the frequency of monitoring
for pollutant concentrations. In no case, however, shall the frequency of monitoring be less than
once per year when residuals are applied to the land.
4. A Toxicity Characteristics Leaching Procedure (TCLP) analysis shall be conducted by the
Permittee once every five years. The TCLP analysis shall include the following parameters
(please note the regulatory level in mg/L in parentheses):
Arsenic (5.0)
Cadmium (1.0)
Chlorobenzene (100.0)
o-Cresol(200.0)
Cresol (200.0)
1,2-Dichloroethane (0.5)
Endrin (0.02)
Hexachlorobenzene (0. 13)
Lead (5.0)
Methoxychlor (10.0)
Pentachlorophenol (100.0)
Silver (5.0)
Trichloroethylene (0.5)
2,4,5-TP (Silvex) (1.0)
Barium (100.0)
Benzene (0.5)
Carbon tetrachloride (0.5)
Chlordane (0.03)
Chloroform (6.0)
Chromium (5.0)
m-Cresol (200.0)
p-Cresol (200.0)
2 4-D (10.0)
1,4-Dichlorobenzene (7.5)
1,1-Dichloroethylene (0.7)
2,4-Dinitrotoluene (0.13)
Heptachlor (and its hydroxide) (0.008)
Hexachloro-1,3-butadiene (0.5)
Hexachloroethane (3.0)
Lindane (0.4)
Mercury (0.2)
Methyl ethyl ketone (200.0)
Nitrobenzene (2.0)
Pyridine (5.0)
Selenium (1.0)
Tetrachloroethylene (0.7)
Toxaphene (0.5)
2,4,5-Trichlorophenol (400.0)
2,4,6-Trichlorophenol (2.0)
Vinyl chloride (0.2)
5. Three copies of all required monitoring and reporting requirements as specified in conditions 1112,
III 3, and III 4 shall be submitted annually on or before March 1 of the following year to the
following address:
NCDENR-DWQ
Information Processing Unit
1617 Mail Service Center
Raleigh, North Carolina 27699-1617
6. Noncompliance Notification:
The Permittee shall report by telephone to the Mooresville Regional Office, telephone number
[phone], as soon as possible, but in no case more than 24 hours or on the next working day
following the occurrence or first knowledge of the occurrence of any of the following:
a. Any occurrence with the surface disposal program which results in the disposal of significant
amounts of wastes which are abnormal in quantity or characteristic.

. . i
b. Any failure of the surface disposal program resulting in a release of material to receiving
waters.
Any time that self -monitoring information indicates that the facility has gone out of
compliance with the conditions and limitations of this permit or the parameters on which the
system was designed.
d. Any process unit failure, due to known or unknown reasons, that renders the facility incapable
of adequate residual treatment.
e. Any spillage or discharge from a vehicle or piping system transporting residuals to the
disposal site.
Persons reporting such occurrences by telephone shall also file a written report in letter form
within five (5) days following first knowledge of the occurrence. This report must outline the
actions taken or proposed to be taken to ensure that the problem does not recur.
IV. GROUNDWATER REQUIREMENTS
The COMPLIANCE BOUNDARY for the disposal system is specified by regulations in 15A
NCAC 2L, Groundwater Classifications and Standards. The Compliance Boundary is for the
disposal system constructed after December 31, 1983 is established at either (1) 250 feet from the
waste disposal area, or (2) 50 feet within the property boundary, whichever is closer to the waste
disposal area. An exceedance of Groundwater Quality Standards at or beyond the Compliance
Boundary is subject to immediate remediation action in addition to the penalty provisions
applicable under General Statute 143-215.6A(a)(1).
2. In accordance with 15A NCAC 2L, a REVIEW BOUNDARY is established around the disposal
systems midway between the Compliance Boundary and the perimeter of the waste disposal area.
Any exceedance of standards at the Review Boundary shall require remediation action on the part
of the Permittee.
3. Any groundwater quality monitoring, as deemed necessary by the Division, shall be provided.
V. INSPECTIONS
The Permittee or his designee shall inspect the residuals storage, transport, and disposal facilities
to prevent malfunctions and deterioration, operator errors and discharges which may cause or lead
to the release of wastes to the environment, a threat to human health, or a nuisance. The Permittee
shall maintain an inspection log or summary including at least the date and time of inspection,
observations made, and any maintenance, repairs, or corrective actions taken by the Permittee.
This log of inspections shall be maintained by.the Permittee for a period of five years from the
date of the inspection and shall be made available to the Division or other permitting authority,
upon request.
2. Any duly authorized officer, employee, or representative of the Division may, upon presentation of
credentials, enter and inspect any property, premises or place on or related to the surface disposal
site or facility at any reasonable time for the purpose of determining compliance with this permit;
may inspect or copy any records that must be kept under the terms and conditions of this permit; and
may obtain samples of groundwater, surface water, or leachate.

1
VI. GENERAL CONDITIONS
This permit shall become voidable unless the surface disposal activities are carried out in
accordance with the conditions of this permit, the supporting materials, and in the manner
approved by this Division.
Z. This permit is effective only with respect to the nature and volume of wastes described in the
application and other supporting data.
3. This permit is not automatically transferable. In the event that there is a desire for the facilities to
change ownership or a name change of the Permittee, a formal permit request must be submitted
to the Division accompanied by an application fee, documentation from the parties involved, and
other supporting materials as may be appropriate. The approval of this request will be considered
on its merits and may or may not be approved.
4. Failure to abide by the conditions and limitations contained in this permit may subject the
Permittee to an enforcement action by the Division in accordance with North Carolina General
Statute 143-215.6A to 143-215.6C.
5. The annual administering and compliance fee must be paid by the Permittee within thirty (30)
days after being billed by the Division. Failure to pay the fee accordingly (may cause the Division
to initiate action to revoke this permit as specified by 15 NCAC 2H .0205 c 4 .
6. The issuance of this permit does not exempt the Permittee from complying with any and all
statutes, rules, regulations, or ordinances which may be imposed by other government agencies
(local, state, and federal) which have jurisdiction, including but not limited to applicable river
buffer riles in 15A NCAC 2B.0200, erosion and sedimentation control requirements in 15A
NCAC Chapter 4 and under the Division's General Permit NCG010000, and any requirements
pertaining to wetlands under 15A NCAC 2B .0200 and 2H .0500.
7. The Permittee, at least six (6) months prior to the expiration of this permit, shall request its
extension. Upon receipt of the request, the Commission will review the adequacy of the facilities
described therein, and if warranted, will extend the permit for such period of time and under such
conditions and limitations as it may deem appropriate.
8. This permit may be modified, or revoked and reissued to incorporate any conditions, limitations
and monitoring requirements the Division deems necessary in order to adequately protect the
environment and public health.
9. The Division must be notified in writing at least 180 days prior to closing of the surface disposal
site. A formal closure plan shall be required to be submitted at that time.
Permit issued this the 28`h day of January, 2005
NORTH CAROLINA ENVIRONMENTAL MANAGEMENT COMMISSION
Alan W. Klimek, P.E., Director
Division of Water Quality
By Authority of the Environmental Management Commission
Permit Number WQ0016338

NCDENR MRO
01{271-20e5 16:38
Fax:[phone] Apr 1 2005 15:24 P.01
7042798418 ALCHEM INC PAGE 62
ALCHEM9 INrl
'
8135 )ILEA ROAD
ROCKWELL, NC 2�
704-279-7908 fax 704-7
pdryeQagtel.oet ' �� i�9 ��`� .
Mr. D. Rex Gleason, P•E• i.%1
St�rfaC.e Water rroteetionRegional Supervisor �b
NCDENR v j
y �
Division of Water Quality
Surface Water protection Unit rs
610 East Centex Ave, Suite 301
Mooresville, NC 28115
Dear Mr. Gleason;
Alcbem, Inc is very conaemed about the impact of tho runoff from Alchem propextY-
Alchcm, Inc has removed sand from the stream and wooded areas asing temporary personnel. Some of
the areas were not possible to enter with manual labor.
Alchem has hiked Tara Group Construction to bring in heavy equipment to complete this clean up in a
quick and professional manner.
Alchen) employees have applied some agricultural lime in some areas to neutralize the soil. We will
increase this cffort.
The silt fence is very hard to maizrtaIu with fallen
limthe ss It fence wiwid trees. llbe observed more often ohein is in the PTOOess ow of
putting rip tap Rack at tiu:c caste VA �A.
erirnetez in the last week and
Tara Group has applied 3 feet to the berm around the entire
residual storage p
very close to moving into the heavily wooded areas for c up
Alehem has cozitacted Rowan Community a ollege to hire a student to do environmental checks, pk1
tes x g, collect water samples, etc for Alch w
A,3phezn Ine personnel did pH testing every week since the last N.O.V, The pH reading was not as low as
Mr. Wes Bell reported.
I expect to have this clean, up completed by Inid February weather pemitting.
If possible we would like to meet with you before you take any action on this.
13est regards,
ALCHENI INC
Wayne Drye, V
platlt Manager
27 0
pM

NCDENR MRO
Fax:[phone] Apr 1 2005 15:25 P.02
a2/11!?005 10:19 7042796418 ALCHEM INC, PAGE 01
ALCHEN., INC.
Coroorafic 91ftce Sales and MangActurinQ
2042 6vie Philadelphm Rand 8135 Red Road
J2sd Springs, NC 25377 • Rockwell, NC 28138
Tel. [phone] — Fax [phone] j� lei. 704-279-7908 •- FU 7o4-279-8418
rF� {�semr.nst 4rJ" pdrye.alchemQcbiintem¢t.net
February 9, 2005
Mr, Rex Gleason
Water Quality Regional Supervisor
NCDENR
919 North Maim Street
Mooresville, NC 28115
-Dear Mr. Gleason:
i would like to inform you that we have taken the following steps at our facility.
. We obtained soil sampling boxes from the local eXtension agent, We
sent in soil samples and asked that we be informed of the recommend
levels of Lime to add. We have already added agricultural Lime to the
soil in the affected area. We are constantly monitoring the ph of the
stream. The latest reading was in the area of ph 6.4 - 6.6. We will
continue to monitor the dry run ditch from our property. uY
2, We have contacted a tree expert at rite county -age iz ,��.i e:
be making a site visit next week and will then give us some
recommendations.
3. We have completely repaired the silt fence and out much larger stones
on it to hold it in place.
1 wilt continue giving you reports of Our progress.
Best regards,
ALCHEM, INC.
Wayne Drye,
plant Njanager
vl!

l ALCHEM, INC.
Corporate Office Sales and Manufacturing
2042 Buie Philadelphus Road 8135 Red Road
Red Springs, NC 28377 Rockwell, NC 28138
Tel. [phone] --- Fax [phone] Tel. [phone] — Fax [phone]
[e-mail] [e-mail]
February 10, 2005
Mr. Alan W. Klimek, P.E
Director
Aquifer Protection Section
DIVISION OF WATER QUALITY
512 North Salisbury Street
9th Floor
Raleigh, NC 27604
Dear Mr. Klimek:
We received our permit No.: WQ0002702. Your letter is dated December 28, 2004.
We did not receive the permit until January 18, 2005. We would like to ask for an
extension of time of 90 days to examine and respond to all of the changes. We feel
that because of all of the extensive changes that we will need this extra time. Thank
you for your help.
Best regards,
ALCHEM, INC.
Wayne Drye,
Plant Manager
vll
cc: Mr. John Reuscher
Mid Atlantic Services

1-1
ALCHEM, INC.
Corporate Office
2042 Buie Philadelphus Road
Red Springs, NC 28377
Tel. [phone] --- Fax [phone]
[e-mail]
March 8, 2005
Mr. Alan W. Klimek, P.E.
Director
Aquifer Protection Section
DIVISION OF WATER QUALITY
512 North Salisbury Street
9`h. Floor
Raleigh, NC 27604
Subject: Permit#: WQ0002702
Dear Mr. Klimek
Sales and Manufacturing
8135 Red Road
Rockwell, NC 28138
Tel. [phone] — Fax [phone]
[e-mail]
NC DEPI. OF ENVIKUNIVIENT
AND NATURAL RESOURCES
RECEIVED
MAIR 2 3 2005
MOORESVILLE REGIONAL OFFICE
DWO-GROUNDWATER SECTION
We have had a chance to review the proposed permit. We have questions and objections to the
following parts.
We object to the necessity of extensive data generation for the water sampling in the stream. We
request that this water sampling be done yearly. We plan to block any water from leaving the
sandy area and use this water in our process.
No. 11 — We have no idea what these gauges are and we can visually look at the levels. We see
no real reason to install them. Our standard operating procedures provide for us to leave plenty of
operating room in the storage basins.
Additionally, we do not have any waste on our property. All material is beneficially used.
13. This is extremely difficult and we would propose to use a ph of 2 as a benchmark. If we
add Lime or any other Alkali to the system we cannot use the Aluminum value to put
bath into the process. Our rainwater is ph 5.0 or less.
14. Which fill area?
15. We wish to continue using the sand as Alchem, Inc. intends to build on the level land that
has been generated. Alchem, Inc. is using this sand for a beneficial use. There is no
waste. We plan to build a production facility on this built up area.
16. How can one take the ph of a solid?
17. Alchem, Mc. standard operating procedure when removing sand from the Lagoons is to
stay two feet away from the walls and bottom. Therefore, there is no breech and no way
to examine the liner. It was originally inspected and certified by a professional engineer.
There is no reason to think any change has occurred.
18. Alchem, Inc. is not disposing of anything. Alchem, Inc. is using the sand and using the
rainwater from the berm area.

ALCHEM., INC.
Corporate Office Sales and Manufacturing
2042 Buie Philadelphus Road 8135 Red Road
Red Springs, NC 28377 Rockwell, NC 28138
Tel. [phone] -- Fax [phone] Tel. [phone] — Fax [phone]
[e-mail] [e-mail]
19. What is the point of moving a city water line? This is process water only. Also, the city
water line has been cut off from the facility and turned off.
29. We do not have a wastewater treatment and spray irrigation facility. Therefore, we feel
there is no need for this provision.
31. We are not familiar with this item and do not understand why we should be -required to
do all of this.
I feel that this permit if enacted would put our company out of business. It is economically
detrimental to us and our employees. I would like to point out that in your letter you stated that a
Nov was issued against our facility in January 7, 2001 for violations of State Groundwater
Quality Standards. I had to hire a consultant and spend $ 4,000.00 to prove that the person
issuing this Nov was wrong. After proving that it was wrong I expected to receive a letter of
apology. I also thought that your office might offer to reimburse our company for our money and
time spent on this matter. Instead, I received a letter saying that if we were every caught doing
something wrong we would be severally penalized.
The Nov in May 12, 2003 was caused by unusually large amounts of rain that just over whelmed
us. We have put up a beam that should keep this from every happening again. I look forward to
meeting with you.
Best regards,
ALCHEM, INC.
Randall Andrews,
Sales Manager
v11

3 - q-
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---*'�, 3.3 r"

ill <
NCDENR MRO Fax:[phone] Apr 1 2005 14:18 P.01
NCDENR
North Cardina DeNarment of Environment and Nat"'it.11ral Resources
r25t�Coveri 1cr
FAX COVER SHEEN"
'From: ' t `T` (fie V,
_ ,` •A,,
Division:
c
Section:
Gte: 4 1 1` 4 V
y
,Fax'Number:
Number of Pages (including cover)'
Subject: C `xA"y, ' - i 4 � �lbv
610 East Center Avenue, Suite 301, Mooresville, North Carolina 28115
Phone: [phone] FAX: [phone] Internet: www.enf.state.nc.uS
William G. Ross Jr., Secretary
NorthCaxo w-
NRil gllry
; � al Oppartkinit ? AtGrmarwe Action Employer - 50 Reefc{ed % 10 Post Consumer Paper.

L NCDENR MRO Fax:[phone] Apr 1 2005 14:18 P.02 /
., blicltnci l Pasl:^,. �tr�'.rta:
�a�F W Ar8AQ IM1141m C. Rk%* .ta., sccrrta .
O G Nnnh Cnmltnh I1gMMCn1 OrE"viruamcnt tend NnTum" Re"urCCr
CIO [ Alain W. KhrmL l'. E.. D�Tc�ute'
`9 —q Divi-1 t, o!"A'aler Quality
January 12,.2005
IV1i. >(tamdall F. Andrews, President
"Lclwly , Inc.
2042 Buie Ph:iladelphus Road
Red gFrimgs,North Carolina 28377
Subject Notice of ViolationfNotiee of
Recommendation for Enforcement
ALCBEK Ine.
Violation of General Statute 143-215.1
Follow-up Investigation
Rowan County, N.C.
Trw img #: NOV-2005-SS-0001
Dear I& Andrews:
Chapter 143, Article 21 of the North Carolina General Statutes (NCGS) tu%orizes and diirects the
Environmental Management Commission ofthis Department to protect and preserve tote water resources of
the State. The Division of Water Quality (DWQ) has the delegated authority to enforce adopted pollution
control rules and regulations. .
Exlciosed please fmd a copy of a follow-up Investigation Report for the investigations Conducted
on December 36, 2004 and January 5, 20115 by T&- Wes Bell. Tine follow-up investigations were
performed to assess A LCHEIvI, Ins.'s on -site remedial activities and the condition of the tributary to
As a result of these investigations, tine follov4"Mg co
nditmns were found in
Second CreekfN (tth Ca li CGS 143-215.1 and 15A North Carolina Admini e
violation of Noxtb� Carolina General Stage (N )
Code (NCA,C) 2B _0211 (3)(9):
The acidic discharges into the unnamed tributary (IM resulting from tote
drainage *Mu& the unremediated woodedhiparian areas (on the
ALCHEAL InG.'s property), had lowered the tribatary's pE from 6.22 s.u.
(upstream) to 4.76 s.u. (10 - 20 yards. downstream of where the drainage
enters the UT). No evidence wasobserved to suggest that ALCB EK
1b e. bad continued remedial efforts (required in the settlement aement)
wid& the woodedhoiparian areas ogre
n the business site.
- ..! •�. .;emu=rya:
, 6firlti°S Gcs+o>W Sevier
N. c ]Division ocf Waur Quatity, Mooresvilic SIO �'� fil0 F�sT C-nocr Av�ue, Suite 30„ TQoorsville NG 281 n5 (7U4) :.E ,-P-54748

NCDENR MRO Fax:[phone] Apr 1 2005 14:18 P.03
Mr. Randall F. Andrews
January 12,200
Page Two
Please be advised that this report is being issued as a Notice of Violation (NOV) and Notice for
Recommendation for Enforcement (NRF-).for the violations ofNCGS 143-215.1, 15A NCAC 2B .0211
(3)(g), and the facility's failure to continue to remediate the wooded/riparian area located on the facility's
property. Be'advvi�sed that NCGS 143-215.6A, provides for a civil penalty assessment of not more that
twtrnty-five thousand dollars ($25,000.00), or twenty-five thousand dollars ($25,000.00) per day when the
violation is of a continuing nature, against any person who fails to abide by the conditions of the permit
and who fails to apply for or to secure a permit requi ed by NCGS 143-215.1. Penalties may also be.
.assessed for any damage to the surface waters of the Stage that may result from the unpermitted discharges.
This letter is also to advise you that this 0.0ce is considering sending a recommendation for
enforcement action to the Director of the Division of Water Quality for the acidic discharges into the
unnamed t nbutazy to Second Creek, water quality stream standard violations (pll), and the facilaty°s fax-[ e
to continue the cleanup on the unremediated areas on the facilky's properly. If you have an explanation for
the violations that you wish to present; please include same in the requested response. Your explanation
va"U.be reviewed. and if au enforcement action is still deemed appropriate, your explanation will be
forwarded to the Director along with the enfbreement Package for his consideration.
It is requested that you respond; in wdtt».g, within fifteen (15) days followitng receipt of this
Notice. The response should address the measures taken to immediately cease the acidic discharges
resulting from the drainage through the unremediated wooded/riparian areas, nad the efforts to ensure
fU..ture discharges do not recur. In addition, a detailed plan should be, included that specifies the
remediation activities utilized and the date of completion for the cleanup of the unrenaediated
,wooded/riparian areas on the facility's Property.
5hquld you have questions, please do not hesitate to contact Mr. Bell or me at gu4) 663-1699.
Sincerely,
D. Rex Gleason, P.E.
Surface Water Protection Regional Supervisor
,�-}iad�.f.I11lGM�
cc: Rowan County Health Dept
Stormie Forte, .Associate Attorney Gelperdl
Wayne Drye, Plant Manager, ALCB EM, Inc.

O� WATFR Michael F. Easley, Governor
\OCR QG William G. Ross Jr., Secretary
WrDepartment of Environment and Natural Resources
> NC DEPT. OF E'0469
p AND NATURAL RE Alan W. Klimek, P.E., Director
43 RECEIVED Division of Water Quality
MAY 17 2005
MEMORANDUM
DATE: MAY 13, 2005 MOORESVILLE REGIONAL OFFICE
DWQ-GROUNDWATER SECTION
TO: JANET LEACH, ATTORNEY GENERAL'S OFFICE - ENVIRONMENTAL DIVISION/WATER & LAND SECTION
FROM: J SHANNON MOHR THORNBURG, AQUIFER PROTECTION SECTION - LAND APPLICATION UNIT
SUBJECT: INFORMATION REQUESTED FOR 05 EHR 0718 (REQUEST FOR ADJUDICATORY HEARING FOR
PERMIT NO.WQ0002702 ISSUED TO ALCHEM, INC.)
We are in receipt of your e-mail sent to Mr. Ted Bush and Mr. Ed Hardee on 05/12/2005
regarding the above -referenced permit. Per your request, we are attaching the following documents to
this memorandum (i.e., in order of attachment):
♦ Permit application form, including cover letter, from Alchem, Inc., requesting renewal of
Permit No. WQ0002702 for its wastewater recycle facility. Dated 09/21/2004 and received
09/24/2004.
♦ Letter from the Division, acknowledging receipt of the permit renewal application package
and notifying Alchem, Inc. that the review had been assigned to Mr. David Goodrich. Dated
09/28/2004.
♦ Staff report from the Mooresville Regional Office, transmitting recommendations regarding
pen -nit issuance. Dated 10/25/2004 and received 11/01/2004.
♦ Permit from the Division, renewing operation of wastewater recycle facility for another
permit cycle. Dated 12/28/2004. The renewed permit was not sent certified mail/return
receipt requested (i.e., not standard operating procedure).
♦ Letter from Alchem, Inc., requesting an extension of 90 days to review the permit and
respond to changes. Dated 02/10/2005 and received 02/17/2005. This letter documents that
Alchem, Inc. received the permit on 01/18/2005.
♦ Letter from Alchem, Inc., raising several "questions and objections" to the "proposed
pen -nit." Dated 03/08/2005 and received 03/24/2005.
♦ Letter from the Division, stating that the permit was not "proposed" and providing notice of
regulatory requirements. Dated 04/22/2005 and received by Alchem, Inc. on 04/25/2005 and
04/26/2005 at its corporate headquarters and the Rockwell, NC facility, respectively. After
its receipt by Alchem, Inc., a meeting was held between the Division and Alchem, Inc. on
05/11/2005 to discuss this letter and clarify the permit requirements further.
♦ A packet of information related to the history of this permit as well as its sister permit, Permit
No. WQ0016338. The first document in this packet is an excellent summary of the
Division's history with the Alchem, Inc. facility that was prepared by Ms. Ellen Huffman.
Also included are several documents regarding recent compliance and enforcement activities
since 2001.
Aquifer Protection Section 1636 Mail Service Center Raleigh, NC 27699-1636
Internet: http://h2o.enr.state.nc.us 2728 Capital Boulevard Raleigh, NC 27604
Noi th Carolina
Natimally
Phone [phone] Customer Service
Fax [phone]
Fax [phone]
An Equal Opportunity/Affirmative Action Employer - 50% Recycled/10% Post Consumer Paper

Potential witnesses for this- hearing. include. ,the .following Division of Water Quality staff
members:
♦ David Goodrich, Hydrogeolo.gist Il-
NCDENR-DWQ
Aquifer Protection Section
Land Application Unit
1636 Mail Service Center
Raleigh, NC 27699-1636
[phone]
[phone] Fax
david.goodrichOwncmail.net
David was the Central Office reviewer assigned to review and process the permit renewal
application package. He also drafted the permit and made the recommendation for approval.
♦ Ellen Huffman, Environmental Specialist II ,
NCDENR-DW Q
Mooresville Regional Office
Aquifer Protection Section
610 East Center Avenue
Mooresville, NC 28115
[phone]
[phone] Fax
ellen.huffmanLDncmai l.net
Ellen was the Mooresville Regional Office reviewer assigned to review the permit renewal
application package. As part of her review, she made a visit of the facility and drafted a
report that detailed her recommendations regarding permit issuance that was sent to the
Central Office.
♦ Andrew Pitner, Environmental Regional Supervisor I
NCDENR-DW Q
Mooresville Regional Office
Aquifer Protection Section
610 East Center Avenue
Mooresville, NC 28115
[phone]
[phone] Fax
andrew.pitner (u�,ncmail.net
Andrew is Ellen's direct supervisor. He reviewed Ellen's report and approved it to be sent to
the Central Office
♦ Kim Colson, Environmental Engineering Supervisor
NCDENR-DWQ
Aquifer Protection Section
Land Application Unit
1636 Mail Service Center
Raleigh, NC 27699-1636
[phone]
[phone] Fax
kim.colson a,ncmail.net
Kim is David's direct supervisor. He reviewed the draft permit and supporting pen -nit
renewal application package and signed it on the Director's behalf, per his signatory
delegation authority.
N

Note that if Stormie would like to raise issues regarding the historic compliance/enforcement
record of the overall facility, we may have to amend the potential witness list with additional people.
Since I am helping with various issues relating to this facility, I would like to be kept informed as to all
progress on this case in addition to the potential witnesses.
Please do not hesitate to contact me at [phone] or via e-mail at
[e-mail] at any time, if I may provide additional information or answer questions
regarding this memorandum.
Enclosures
cc: Ms. Ellen Huffman, Mooresville Regional Office - Aquifer Protection Section
Ms. Peggy Finley, Mooresville Regional Office - Aquifer Protection Section
M.�r���d�e�t��P,e� ` �oz,esvi-lgl Reg,oria�l U�ice - ��i�fer ' zc�tection Section
Mr. David Goodrich, Aquifer Protection Section - Land Application Unit
Mr. Kim Colson, Aquifer Protection Section - Land Application Unit
APS Central Files (WQ0002702)

!. iaol
ALCHEM, INC
8135 RED ROAD
ROCKWELL, NC 28138
704-279-7908 fax [phone]
[e-mail]
September 21, 2004
NC DIVISION OF WATER QUALITY
NON -DISCHARGE PERMITTING UNIT
512 North Salisbury Street, Suite 1219
RALEIGH, NC 27604
RE: Permit #WQ0002702
Dear Sir:
8EP 2
.. 2004
DIV. OF WATER
,DIRECTOR'S QUALITY
F1DE
I would like to submit our application for a permit renewal for Permit Number
WQ0002702. We understand there is not a fee for renewal.
If you have any questions regarding this permit renewal application, please let me know.
Best regards,
o
-
ALCHEM, INC
cn
-rr
rn
O
�•
Randall F. Andrews,
President
o
CD
cam
ut
C10,
Un
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pcd
c'
Enclosures

r '
State of North Carolina
Department of Environment and Natural Resources
Division of Water Quality
WASTEWATER RECYCLE SYSTEMS
(THIS FORM MAY BE PHOTOCOPIED FOR USE AS AN ORIGINAL)
Application Number: (to be completed by DWQ)
I. GENERAL INFORMATION:
1. Project Name: ALCHEM, INC Renewal Permit #WC0002762
2. Applicant's name (Name of the owner of the facility. If a company or corporation it must be registered with
the Secretary of State): RANDALL F. ANDREWS
3. Name and complete mailing address of applicant: 8135 Red Road
4.
5.
6.
7.
City: Rockwell State: NC Zip: 28138
Telephone number: ( 704) 279-7908 Facsimile number: (704— ) 279-8418
Email Address: [e-mail]
Project name (name of the facility): ALCHEM, INC
Complete address of the physical location of the facility if different from mailing address of applicant:
City: same State: Zi
County where project is located: Rowan
Name and complete address of engineering or consulting firm:
a
P
City: State: Zip:
Telephone number: ( ) Facsimile number: ( )
8. Name and affiliation of contact person who can answer questions about project: Wayne Drye,
Plant Manager Email Address: [e-mail]
II. PERMIT INFORMATION:
1. Project is: new; modification; XXX renewal without modification
Note: Renewals without modifications should just fill out sections I & II; sign the applicants signature on Page 5.
2. Fee submitted: $ n/a (See Instruction C.)
3. If this application is being submitted as a result of a modification to an existing permit, provide:
existing permit number n/a and the issuance date
4. Applicant is: public, XX private
5. If project disturbs more than one acre, provide date when an erosion and sedimentation control plan was
submitted to the Division of Land Resources, or local delegated program, for approval:
n/a
6. If project includes any stream or wetland impacts, provide date when Nationwide 12 or 404 permit was
submitted for approval: n/a permit renewal
7. Provide buffers used to maintain compliance with any applicable river basin rules in 15A NCAC 2B .0200
(e.g., Neuse River basin buffer rules, etc.): n/a
FORM: RFA 01-02 Page 3 of 5

. f ,
Professional Engineer's Certification:
I, , attest that this application for
has been reviewed by me and is
accurate, complete and consistent with the information supplied in the engineering plans, calculations, and all other
supporting documentation to the best of my knowledge. I further attest that to the best of my knowledge the
proposed design has been prepared in accordance with this application and its instructions as well as all applicable
regulations and statutes. Although certain portions of this submittal package may have been developed by other
professionals, inclusion of these materials under my signature and seal signifies that I have reviewed this material
and have judged it to be consistent with the proposed design. Note: In accordance with NC General Statutes 143-
215.6A and 143-215.613, any person who knowingly makes any false statement, representation, or certification in any
application shall be guilty of a Class 2 misdemeanor which may include a fine not to exceed $10,000 as well as civil
penalties up to $25,000 per violation.
North Carolina Professional Engineer's seal, signature, and date:
Applicant's Certification:
I RANDALL F. ANDREWS
attest that this application for
renewal of
permit #WQ0002702 has been reviewed by me and is
accurate and complete to the best of my knowledge. I understand that any discharge of wastewater to surface waters
or the land will result in an immediate enforcement action which may include civil penalties, injunctive relief, and/or
criminal prosecution. I will make no claim against the Division of Water Quality should a condition of this permit be
violated. I also understand that if all required parts of this application are not completed and that if all required
supporting information and attachments are not included, this application package will be returned to me as
incomplete. Note: In accordance with NC General Statutes 143-215.6A and 143-215.613, any person who
knowingly makes any false statement, representation, or certification in any application shall be guilty of a Class 2
misdemeanor w h may include a fine not to exceed $10,000 as well as civil penalties up to $25,000 per violation.
Signature: 64 1Q"P;7r Date: 9-21-04
FORM: RFA 01-02 Page 5 of 5

Michael F. Easley, Governor
William G. Ross Jr., Secretary
North Carolina Department of Environment.and Natural Resources
Alan W. Klimek, P.E., Director
Coleen H. Sullins, Deputy Director
Division of Water Quality
September 28; 2004
Randall Andrews
Alchem, Inc
8135 Red Road
Rockwell, NC 28138
Subject: Acknowledgement of Application No. WQ0002702
Alchem, Inc
Recycle System
Rowan County
Dear Mr. Andrews:
The Non -Discharge Permitting Unit of the Division of Water Quality. (Division) acknowledges receipt of
your permit application and.supporting materials on September 23, 2004. This application package has
been assigned the number listed. above and will be reviewed by David Goodrich.
The reviewer will perform a detailed review and contact you with a request for additional information if
necessary. To ensure the maximum efficiency in processing permit applications, the Division requests
your assistance in providing a timely and,complete response to any additional information requests.
Please be aware that the Division's Regional Office, copied below, must provide recommendations prior to
final action by the Division. Please also note at this time, processing permit applications can take as long
as 60 - 90 days after receipt of a complete application.
If you have any questions, please -contact David Goodrich at 919-715-6162 or via e-mail at
[e-mail]. If the reviewer is unavailable, you may leave a message, and they will
respond promptly.
PLEASE REFER TO THE ABOVE APPLICATION NUMBER WHEN MAKING INQUIRIES ON THIS
PROJECT.
,.
Supervisor
cc: Mooresville Regional Office, Water Quality Section
Wayne Drye
Plant Manager, ALCHEM, Inc.
8135 Red Road
Rockwell, NC 28138
Permit;Application; File W000027.02 ..
,.
�4
Non -Discharge Permitting Unit Internet http://h2o.enr.state.nc.us/ndpu NCDENR
1636 Mail Service Center, Raleigh, NC 27699-1636 Telephone [phone] Fax [phone]
DENR Customer Service Center Telephone [phone]
An Equal ODDortunity Action EmDlover 50% recvcled/10% Dost-consumer DaDer

AQUIFER PROTECTION REGIONAL. STAFF REPORT
Date: 10/25/04
To: Aquifer Protection Central Office
Central Office Reviewer: David Goodrich
County: Rowan
Permittee: Mr. Randall Andrews
Project Name: Alchem. Inc.
Application No.: W00002702
W00016339
L GENERAL INFORMATION
1. This application is (chwk au that apply): ❑ New ® Renewal ❑ Renewal with mod.
❑ Minor Modification ❑ Major Modification
LJ Surface Irrigation LJ Reuse 0 Recycle LJ High Rate Infiltration LJ Evaporation/Infiltration Lagoon
❑ Land Application of Residuals [:]Attachment B included ❑ 503 regulated ® 503 exempt
❑ Distribution of Residuals ® Surface Disposal
❑ Closed -loop Groundwater Remediation ❑ Other Injection Wells (incluci agrjn„situ. remediation)
Was a site visit. conducted in order to prepare this report? ® Yes or ❑ No.
a. Date of site visit: 10/21/2004 M
b. Person contacted and contact information: Wayne Drve 704/279-7008
C. Site visit conducted by: Ellen Huffman, Pe File
Y' Peggy X U L OCT
2 U
004
A. Inspection Report Attached: [].Yes or ® No.
..'W um - J
2. Is the following information entered into the BIMS record for this application c rrect? � i�� - �' � E �'-,,iLITY
POINT SOURCE BkANCH
❑ Yes or ® No. If no, please complete the following or indicate that it is correct on -the -current -application.
For Treatment Facilities:
a. Location: 8135 Red Road, Rockwell, NC 28138
a. Driving Directions: From the intersection of Hwy 152 and Hwy 52, go north on Hwy 52 to Cornelius Road. Go
west (left) on Cornelius Rd. to Red Road. Go north (right) on Red Road. Facilitv will be on the right of Red
Road.
b. USGS Quadrangle Map name and number: E 17 SW
c. Latitude:35°33'52" Longitude:80°25'26"
d. Regulated Activities / Type of Wastes (e.g., subdivision, food processing, municipal wastewater):
Mining, chemical processing. The SIC code on file is 2819. It is unclear to the writer weather there needs to
be a stormwater permit required for this site.
For Disposal and Injection Sites:.
a.
Locations): Same as'above.
aY:yY.. Yd�. .•'t'•'
b.
Driving Directions:
c.
USGS Quadrangle Map name and number:°..'a
d.
Latitude: Longitude:
I
i[1UjIn.,
'
-?L65.'l�AA.r
'ti [0 ;-1'.j

AQUIFER PROTECTION REGIONAL STAFF REPORT
III. RENEWAL AND MODIFICATIONAPPLICATIONS (use previous section for new or major modiFcation
systems)
Description Of Waste(S) And Facilities
1. Are there appropriately certified ORCs for the facilities? ❑ Yes or No. ® Not applicable
Operator in Charge: Certificate #:
Backup- Operator in Charge: Certificate #:
2. Is the design, maintenance and operation (e.g. adequate aeration, sludge wasting, sludge storage, effluent storage,
etc) of the treatment facilities adequate for the type of waste and disposal system? ❑ Yes or ® No. If no, please
explain: The facility was on inalIV permitted by DENR Water Quality (W00002702 wastewater recycle) in 1990,
only because it was discovered through a complaint from a neighbor concerning the neighbor's well The facility
was designed to process bauxite (a mixture of aluminum hydroxides) with sulfuric acid for production of
aluminum sulfate. The process creates a by-product of sand slurry left over from processing The sand is supposed
to be washed until the pH is elevated to a minimum of 4.0 and then pumped to drying lagoons The liquid from the
sand/slupy drying lagoons is returned to the processing water tank for re -use The sand/slunry is left in one of two
permitted lagoons to de -water. The two original lagoons were calculated to hold approximately 15 months of
residuals sand/sluM production Information from the (Solid Waste Section) files indicates that the permittee
started producing the sand slum sometime in 1985 The writer was informed by Wayne Drye Alchem Manager
(during the site visit 10/21/20041 that when the lagoons were full the ' residual sand was excavated by using a
backhoe. Back in 1985, it was hauled off site to be used by a fertilizer company as filler. The files also include
correspondence indicating that ALCHEM looked into landfilling the material as an alternate disposal option A
letter dated Aug. 6. 1984, from DEHNR Solid and Hazardous Waste Div informed the permittee that the residual
sand had to be adjusted a pH between 6.0 to 9.0 prior to landfilling It is not clear that ALCHEM ever hauled
material to the landfill. In 19934. the facility was permitted by DWQ to build three more lagoons for a total of five
To date, only three lagoons have been built the original lagoon and two more
Permit WO0016338 (residuals reuse) was issued in 1999 to use the residual sand as structural fill on site There is
no -pH limit in the permit issued in 1999 A landfill would r uire a pH adjustment of at least 6.0 prior to disposal
This residual sandy fill area failed in July 2003 when large amounts of the sandy fill (est volume unknown),
which is fairly light weight, were washed into the creek behind the facility by a rain event (see photos attached).
The material traveled for about 1 mile down stream filling in the creek 12-18" thick in places and lowering the
stream pH from an average of 6.7 (uystream) to 3.8 and 4.7. effectively killing any stream life W00016338 was
issued an NOWNRE on August 19 2003 assessed $10 478 28 The fine was petitioned and reduced to $5 998 28
The facility has since built an earthen berm (8' deep by 8' wide at the bottom and 5' wide at the top) around the fill
material area to correct the problem as requested by MRO (in August 2003) and to keep the fill on site Drawing

,I
AQUIFER PROTECTION REGIONAL STAFF REPORT
attached. Inspection of the berm on 10/21/2004 indicates that it is currently workingto o keep the residuals on site
however, in places, the fill is much higher than the berm and the topography of the site leads the writer to question
weather the berm is built high enough to keep the sandy fill in place See photos attached Review of the
sand/residuals analyses from 1999 2000 2001 2002 all show pH of < 4.0. It is the opinion of the
writer that the material is not effectively washed (of the sulfuric acid) in the system before it stored in the
lagoon and ultimately used as on -site fall Requested information from ALCHEM concerningstream
ream pH
data leads the writer to believe there is a stormwater run-off issue The data reflects a drop in pH after a
rain event. See data attached.
3. Are the site conditions (soils, topography, depth to water table, etc) maintained appropriately and adequately
assimilating the waste? ❑ Yes or ® No. If no, please explain: Inspection of this berm on 10/21/2004 indicates
that the berm is currently, working to keep the residuals on site,• however, in places the fill is much higher than the
berm and the topography of the site leads the writer to question weather the berm is built high enough to keep the
sandy fill in place See photos and copy of topographical survey map attached The writer is concerned about the
area where the digester/reactors are located It appears that there is always standing water at least 12' deep in a
ditch around the reactors. It also looks as if there is a lot of erosion around the cement pad that the digesters sit on
This water is from washingthe he spent bauxite sand that fell out of the overhead conveyors that take the spent
bauxite to the wash recycle system. This area drains to lagoon #1 This residual sand is basically never washed of
the residual sulfuric acid.
4. Has the site changed in, any way that may affect permit (drainage added, new wells inside the compliance
boundary, new development,. etc.)? If yes, please explain: The berm has changed the nature of non -discharge
permit W00016338 and should be reflected in the renewal currently in house The fill disposal area is now
completely bermed and resembles an unlined surface disposal system Also noted was that the facility did not have
enough process water available from the on site water supply well and rain water. The facility recently piped in a 2
inch water supply line from the City (August 2004) This water line was placed RIGHT THROUGH THE FILL
AREA approximately 2 — 3 feet below the surface The writer is concerned that the placement of this water line.
and the use of heave equipment right over the line could possibly shift the material enough to crack, break a sealed
joint, or rupture the water line. A 2 %Z inch water line could deliver enough water to cause another residuals breach
if not caught in time. This water line should be placed around the upper edge of the property effectively skirting
the residual fill area.
5. Is the residuals management plan for the facility adequate and/or acceptable to the Division?
❑ Yes or ® No. If no, please explain: The writer is concerned that the current fill area has a limited life and
appears to be 80% filled. There is no long-range plan for the residuals once this area is filled to capacity. This
permit renewal should require a plan be submitted within 3 months of issuance of renewal

AQUIFER PROTECTION REGIONAL STAFF REPORT
6. Are the.existing application rates (hydraulic or nutrient) still acceptable? ❑ Yes or ❑ No. ® Not applicable
If no, please explain: There are no application rates. This facility now appears to be a permanent on -site storage
facility, a surface disposal system 'or a surface landfill with no restrictions other than a disposal volume limit of
300 dry tons per year. .
1. Is the existing groundwater monitoring program (number of wells, frequency of monitoring, monitoring
parameters, etc.) adequate? ❑ Yes ® No ❑ N/A. Attach map of existing monitoring well network if applicable.
Indicate the review and compliance boundaries. If No, explain and recommend any changes_ to the groundwater
monitoring program: Please see attached data and comments from Peggy Finley MRO APS
8. Will seasonal or other restrictions be required for added sites? ❑ Yes ❑ No ® N/A If yes, attach list of sites
with restrictions (Certification 13?)
9. Are there any buffer conflicts (treatment facilities or disposal sites)? ❑ Yes or ® No. If yes, please attach a map
showing conflict areas or attach any new maps you have received from the applicant to be incorporated into the
permit:
10. Is the description of the facilities, type and/or volume of waste(s) as written in the existing permit correct? ❑ Yes
or ® No. If no, please explain: The residuals handling plan has changed since issuance of the permit See
comments above in #2. #4, and #5.
11. Were monitoring wells properly constructed and located? ® Yes or ❑ No ❑ N/A. If no, please explain:
The APS may want to require more extensive groundwater monitoring of this site due to the history of and past
performance of this facility.
12. Has a review of all self -monitoring data been conducted (GW, NDMR, and NDAR as applicable)? ® Yes or ❑
No ❑ N/A. Please summarize any findings resulting from this review: There are concerns that the monitoring
well by lagoon #2 indicates that the lagoon liner may have been compromised perhaps during past cleaning of the
sand fill (by a backhoe) from the lagoon. The pH has dropped and the amount of aluminum has risen.' See data
attached.
13. Check all that apply:' ❑ No compliance issues; ® Notice(s) of violation within the last permit cycle;
❑ Current enforcement action(s) ❑ Currently under SOC; ❑ Currently under JOC; ❑ Currently under
moratorium. If any items checked, please explain and attach any documents that may help clarify
answer/comments (such as NOV, NOD etc): Please note comments in #2.
14. Have all compliance dates/conditions in the existing permit, (SOC, JOC, etc.) been complied with? ❑ Yes
No ® Not Determined ❑ N/A.. If no, please explain: There is currently a third party lawsuit (concerning_ the
events in August 2003) that has not been resolved One of the complainants has refused to let ALCHEM finish
clean up of the affected stream on their property
15. Are there any issues related to compliancelenforcement that should be resolved before issuing this permit?
❑ Yes or ® No ❑ N/A. If yes, please explain:

AQUIFER PROTECTION REGIONAL STAFF REPORT
V. EVALUATIONAND RECOMMENDATIONS
1. Provide any additional narrative regarding your review of the application:
Monitoring well violation 1/7/2001 for aluminum.
A trend of increasing aluminum concentrations is reflected in the data for monitoring well #2 See data attached
A review of the Solid Waste files indicated that Alchem could take the sand to the landfill after the pH was
adjusted to 6.0 by mixing with lime. A similar pH adjustment of the residual fill should be required for permit
WQ0016338.
Concerns about the placement of a City supply water line through the fill area
2. Attach Well Construction Data Sheet - if needed information is available. attached.
3. Do you foresee any problems with issuance/renewal of this permit? ® Yes ❑ No. If yes, please explain briefly.
The writer questions the issuance of two permits for this system. Permit W00002702 regulates the recycles stem
while permit W00016338 deals with the sand washed by the recycle system. The sand washed by the recycle
system should be incorporated into the recycle permit since it is a byproduct of the wash/recycle system A review
of the non -discharge files reveals that this facility has had multiple problems over the years Combiningthese
permits will make it easier to track their performance. There is now a berm that has been constructed around the I `
fill area. The writer questions the height of this berm. The rainwater is collected from the residual fill area storm- 1
water collection pond (inside the berm) and is pumped back to the recycle system It is not clear if a stormwater lKzt
permit needs to be applied for. The fill area has effectively become an unlined surface disposal landfill This fact
should be reflected in the renewed permit and language should be added for maintenance of the berm
4. List any items that you would like APS Central Office to obtain through an additional information request. Make
sure that you provide a reason for each item: None.
5.' List specific Permit conditions that you recommend to be removed from the permit when issued. Make sure that
you provide a reason for each condition: None.
6. List specific special conditions or compliance schedules that you recommend be included in the permit when
issued. Make sure that you provide a reason for each special condition:
Within three months of issuance of permit renewal:
1. The recycle system should be required to keep the recycled water to a pH of not less than 6.0 as it leaves the
wash area and goes into the storage lagoon. This would effectively raise the pH of the residual sand slurry 3i
stored in the lagoon until it is used as fill.
2. Submit a site life estimate for the fill area. 1 ��
3. Submit a long-range plan for future residuals disposal.
4. Require monitoring of stream behind property — pH and other constituents? s �� 3
5. During the next lagoon clean out, scheduled for the spring of 2005, a pH reading should be taken and
documented on every load removed and placed in the sand fill area.
6. After the next lagoon clean out, require inspection/testing of the clay liners by a certified engineer and require
repairs to be made as needed.

ALCHEM, INC. Rowan County
WQ0002702 Groundwater Monitoring Data for 2002-2004
Date MW-1) MW 2
Field
2/02 pH lab 6.40 5.6
Al .089 mg/I 0..77 mg/I
Field 5.7 5.3
7/02 pH Lab 6.0 5.0
AI .088 mg/I .137 mg/I
Field 5.85 5.10
2/03 pH Lab 7.06 5.62
Al .034 mg/I .340 mg/I
Field 5.8 5.6
7/03 pH Lab 5.68 4.69
Al .281 mg/I .178 mg/I
Field 6.5 5.2
2/04 pH Lab 6.08 4.99
Al .062 mg/I .207 mg/I
Field 6.0 5.2
8/04 pH Lab 5.62 4.71
Al .125 mg/I .596 mg/I
These replacement wells were installed in January 2002
Comments: Groundwater monitoring indicates a downward trend in pH and an upward
trend in aluminum for MW-2.
Recommendations:
Submit a scaled topographic map showing the facility, including
1. scale
2. north arrow
3. the location of the property boundary
4. the three lagoons
5. the two replacement monitoring wells (including a survey of the casing
elevations)
6. the fill area
7. the stormwater detention pond
8. the municipal water line
9. water supply wells within 500 feet

2_
AQUIFER PROTECTION REGIONAL STAFF REPORT
7. The writer questions if groundwater monitoring is adequate (i.e. the number of monitoring wells, frequency of
sampling, and parameters).
Recommendation: ❑ Hold, pending receipt and review of additional information by regional office; ® Flold,
pending review of draft permit by regional office; ❑ Issue upon receipt of needed additional information; ❑
Issue; ❑ Deny. If deny, please state reasons:
It is recommended by MRO:
1- That the two separate permits issued for this facility be merged into onepermit.",'�— P01 Y e r^ U: S. b "-z
2- The permittee seek alternate disposaUre-use options for the fill produced at the facility. C))
3- After the next cleaning of lagoons one and two scheduled for the spring of 2005 the clay liners be inspected v�
by a certified engineer. Any repairs need be made at that time.
4- That the City water supply line be moved to the upper perimeter of the residual fill area. W
Signature of reportpreparer(s):
I
Signature of APS regional supervisor: v l �•'Z -L'��
Date:
ADDITIONAL REGIONAL STAFF REVIEW ITEMS
None.
Attachments
Damage from the spill in August 2003.
�C Y'��7e�-✓G'v� �-'G'rwrf J

AQUIFER PROTECTION REGIONAL STAFF REPORT
Damage from spill August 2003
Origin of runoff — August 2003
New berm around fill area -photo 10-2004 Lagoon 92 to be cleaned in sprin�005-photo 10-2004
Berm in foreround showing height of f II Storm pond on left Berm in background Kilt debris and stormwater pond

Alchem, . inc. W00016338 and VV0000270*ii26-6-37

Alchem, Inc. WQ0016338 and WQ0002702
view from. the berm looking at stormwater collection pond
stockpiled fill. in disposal area

Proposed Agenda for ALCHEM Meeting on April 8, 2005
Combining ALCHEM's permits (WQ0002702 and WQ0016338)
Current status of the January 12, 2005 Notice of Violation and any possible
penalty assessments.
Our response to the Permittee on:
o Permit Issues
o The Notice of Violation
o The March 2, 2004 Settlement Agreement

Mr. Randall Andrews
Alchem, Inc.
8135 Red Road
Rockwell, NC 28138
3 ti c�
PCD ly i
Michael F. Easley, Governor
William G. Ross Jr., Secretary
North Carolina Department of Environment and Natural Resources
Alan W. Klimek, P.E., Director
Division of Water Quality
NC DEFT. OF ENVIRONMENT
December 28, 2004
AND WU RECE VED RCES
JAN 1 4 2005
REGIONAL
,' e �` MODR GROUNDWA R S> OFFICE TION
DW4
bject: Permit No. WQ0002702
Alchem, Incorporated
Industrial Recycle -Bauxite Process
Rowan County
1.�
h 1,
AI
a l�
This permit shall be effective from the date of issuance until November 30, 2009, shall void .Permit No. ' 0
WQ0002702 issued January 21, 1999, and shall be subject to the conditions and limitations as specified therein.
Please pay particular attention to the monitoring requirements in this permit. Groundwater sampling is now
required in monitor wells MW-1, MW-2, and MW-3 and surface water sampling will be performed on the stream
behind the property every February, June, and October for Total Dissolved Solids, pH, Sulfates, Specific
Conductivity, Aluminum, Total Suspended Solids, and water level. A scaled map of the facility must be prepared
and submitted to the Division. The recycled water will be required to have a pH of not less than 6.0 as it leaves
I( —
the wash area and goes into the storage lagoon. A site life estimate and a long range p an or uture residuals
disposal are also required. The material removed from Lagoons 1 & 2 during the next lagoon cleanout is required
to have pH readings taken and documented, and the liners of each lagoon are to be inspected and tested (as
necessary) by a Professional Engineer. Repairs are to be made as needed. The permittee is required to seek
alternate disposal/re-use options for the'fill and submit a proposed schedule for their implementation. The City
Water Supply Line is required to be re -located to the upper perimeter of the residual fill area. Failure to establish
an adequate system for collecting and maintaining the required operational information will result in future
compliance problems. The berm which has been constructed around the residual fill area is to be maintained so as
to keep the fill and/or accumulated rainwater from leaving the fill area.
Dear Mr. Andrews:
4r
In accordance with your request for renewal received September 23, 2004, we are forwarding herewith
Permit No. WQ0002702, dated December 28, 2004, to Alchem, Inc. for the continued operation of the three (3)
lagoon recycle system.
This permit is being renewed by itself and is not being combined with Permit No. WQ001633 8 at this
time, as the application for the renewal of Permit No. WQ0016338 has not yet been received by the Division.
NorthCarolina
. Naturally
Aquifer Protection Section 1636 Mail Service Center Raleigh, NC 27699-1636 Phone [phone] Customer Service
Internet: h2o.enr.state.nc.us 2728 Capital Boulevard Raleigh, NC 27604 FAX [phone]
a
N
An Equal Opportunity/AlBrmalive Action Employer— 50% Recycled/10% Post Consumer Paper

A Notice of Violation was issued against the facility under Permit No. WQ0002702 on January 7, 2001
for violations of State Groundwater Quality Standards as evidenced by the laboratory analyses of groundwater
samples taken during the course of monitoring on -site monitor wells.
A Notice of Violation was also issued against the facility under Permit No. WQ0002702 on May 12, 2003
in response to a release of residuals -into a drainage/wooded area and an intermittent stream. The permittee was
cited for failing to properly operate and maintain the facility as a non -discharge facility, failure to cease reuse
operation once nuisance conditions existed, failure to provide adequate provisions to prevent surface runoff from
conveying pollutants into surface waters, and failure to notify the Division of the residuals release into the
receiving stream.
If any parts, requirements, or limitations contained in this permit are unacceptable, you have the right to
request an adjudicatory hearing upon written request within thirty (30) days following receipt of this permit. This
request must be in the form of a written petition, conforming to Chapter 150B of North Carolina General Statutes,
and . filed with the Office of Administrative Hearings, 6714 flail Service Center, Raleigh, NC 27699-6714.
Unless. such demands are made this permit.shall be final and binding.
6162
If you need additional information concerning this matter, please contact David Goodrich at (919) 715-
Sincere
/Alan W. Klimek, P.E.
cc: Rowan County Health Department
:Mooresville Regional Office, Aquifer Protection Section
Technical Assistance and Certification Unit
Aquifer Protection Central Files
Permit Files

NORTH CAROLINA
ENVIRONMENTAL MANAGEMENT COMMISSION
DEPARTMENT OF ENVIRONMENT AND NATURAL RESOURCES
RALEIGH
RECYCLE SYSTEM PERMIT
In accordance. with the provisions of Article 21 of Chapter 143, General Statutes of North Carolina as amended,
and other applicable Laws, Rules, and Regulations
PERMISSION IS HEREBY GRANTED TO
Alchem, Incorporated
. Rowan County
FOR THE
continued operation of a wastewater recycle system consisting of 3 settling lagoons to serve Alchem, Inc., with no
discharge of wastes to the surface waters, pursuant to the application received September 23, 2004, and in
conformity with the project plan, specifications, and other supporting data subsequently filed and approved by the
Department of Environment and Natural Resources and considered a part of this permit.
This permit shall be effective from the date of issuance until November 30, 2009, shall void Permit No.
WQ0002702 issued January 21, 1999, and shall be subject to the following specified conditions and limitations:
This permit shall become voidable unless the facilities are constructed in accordance with the conditions of
this. permit, the approved plans and specifications, and other supporting data.
2. This permit is effective only with respect to the nature and volume of wastes described in the application
and other supporting data.
3. The facilities shall be properly maintained and operated at all times..
4. This permit is not transferable. In the event there is a desire for the facilities to change ownership, or there
is a name change of the Permittee, a formal permit request must be submitted to the Division of Water
Quality (Division) accompanied by an application fee, documentation from the parties involved, and other
supporting materials as may be appropriate. The approval of the request will be considered on its merits
and may or may not be approved.
5. In the event that the facilities fail to perform satisfactorily; including the creation of nuisance conditions, the
Permittee. shall take immediate corrective action, including those actions that may be required by this
Division, such as the construction of additional or replacement treatment or disposal facilities.
6. The residuals generated from these treatment facilities must be disposed in accordance with General Statute
143-215.1 and in a manner approved by the Division..
7. The issuance of this permit shall not relieve the Permittee of the responsibility for damages to surface or
groundwaters resulting from the operation of this facility.

8. The facilities shall be effectively maintained and operated as a non -discharge system to prevent the
discharge of any wastewater resulting from the operation of this facility.
9. Diversion or bypassing of untreated wastewater from the treatment facilities is prohibited.
10. Freeboard in all of the lagoons shall not be less than two feet at any time.
it. Waste -level gauges, to monitor waste levels in the settling lagoons, shall be installed within 60 days of
issuance of this permit. These gauges shall have readily visible permanent markings indicating the
maximum liquid level at the top of the temporary liquid storage volume, minimum liquid level at the
bottom of the temporary liquid storage volume, and top of the dam elevations. Caution must be taken not to
dama'De the integrity of the liner when installing the gauges.
12. A protective vegetative cover shall be established and maintained on all earthen basin embankments
(outside toe of embankment to maximum pumping elevation), berms, pipe runs, erosion control areas, and
surface water diversions. Trees, shrubs, and other woody vegetation shall not be allowed to grow on the
earthen basin dikes or embankments. Earthen basin embankment areas shall be kept mowed or otherwise
controlled and accessible.
13. 'Within ninety (90) days of permit issuance, the recycled system shall be required to keep the recycled water
at a pH of not less than 6.0 Standard Units as it leaves the wash area and goes to the storage lagoon.
14. Within ninety (90) days of permit issuance, the permittee shall submit a site life estimate for the fill area..
15.' Within ninety (90) days of permit issuance, the permit tee shall submit a long-range plan for future residuals
disposal that shall include a timetable for implementation.
16.. During the upcoming clean out of Lagoons 1 & 2 (scheduled for the spring season of 2005), a pH reading
shall be taken and documented on every load of material removed from the lagoon and placed in the sand
fill area. This information shall be conveyed to the Division within thirty (30) days. of completion off
clean out pr cedure.005)
CS= r
17. At the conclusion of the clean out of LaggYos`R
r& 2 (scheduled for the spring season of 2ep the clay
liners of the lagoon shall be inspected tested (as necessary) by a Professional Engineer. Repairs to tle
liners shall be made as needed and prior to the resumption of use.
18. The penmittee shall actively seek alternate disposal/re-use options for the fill produced at the facility. An
alternate means of disposal, along with ' a proposed schedule for its implementation, shall be identified
within one (1) year of permit issuance and reported by letter to the Division's Central Office at the Aquifer
Protection Section, 1636 Mail Service Center, Raleigh, NC 27699-1636 and to the Mooresville Regional
Office at the Aquifer Protection Section, 610 East Center Avenue/ Suite 310, Mooresville, NC 28115.
19. The City Water Supply Line shall be re -located to the upper perimeter of the residual fill area within one (1)
year of permit issuance. Any problems with implementing this condition in a timely fashion shall be
reported by letter to the Division's Central Office at the Aquifer Protection Section, 1636 Mail Service
Center, Raleigh, NC 27699-1636 and to the Mooresville Regional Office at the Aquifer Protection Section,
610 East Center Avenue/ Suite 301, Mooresville, NC 28115.
20. Any monitoring deemed necessary by the Division to insure surface and ground water protection will be
established and an acceptable sampling reporting schedule shall be followed.
21. Adequate inspection, maintenance, and cleaning shall be provided by the Permittee to insure proper
operation of the subject facilities. The berm which has been constructed around the residual fill area shall be
maintained so as to keep the fill and/or accumulated rainwater from leaving the fill area.

22. The Permittee or his designee shall inspect the wastewater recycle facilities to prevent malfunctions and
deterioration, operator errors and discharges which may cause or lead to the release of wastes to the
environment, a threat to human health, or a nuisance. The Permittee shall maintain an inspection log or
summary including at least the date and time of inspection, observations made, and any maintenance,
repairs, or corrective actions taken by the Permittee. This log of inspections shall be maintained by the
Permittee for a period of three years from the date of the inspection and shall be made available to the
Division or other permitting authority, upon request.
23. Any duly authorized officer, employee, or representative of .the Division may, upon presentation of
credentials, enter and inspect any property, premises or place on or related to the recycle system at any
reasonable time for the purpose of determining compliance with this permit, may inspect or copy any
records that must be maintained under the terms and conditions of this permit, and may obtain samples of
groundwater, surface water, or leachate.
24. The annual administering and compliance fee must be paid by the Permittee within thirty (30) days after
being billed by the Division. Failure to pay the fee accordingly may cause the Division to initiate action to
revoke this permit as specified by 15A NCAC 2H .0205 (c)(4).
25. Failure to abide by the conditions and limitations contained in this permit may subject the Permittee to an
enforcement action by the Division in accordance with North Carolina General Statute 143-215.6A to 143-
215.6C.
26. The issuance of this permit does not exempt the Permittee from complying with any and all statutes, rules,
regulations, or ordinances which may be imposed by other government agencies (local, state, and federal)
which have jurisdiction, including but not limited to applicable river buffer rules in 15A NCAC 2B.0200,
erosion and sedimentation control requirements in 15A NCAC Chapter 4 and under the Division's General
Permit NCGO10000, and any requirements pertaining to wetlands under 15A NCAC 2B .0200 and 2H
.0500.20.
27. A set of approved plans and specifications for the subject project must be retained by the Permittee for the
life of this project.
28. Noncompliance Notification:
The Permittee shall report by telephone to the Mooresville Regional Office, telephone number (704) 663-
1699, as soon as possible, but in no case more than 24 hours or on the next working day following the
occurrence or first knowledge of the occurrence of any of the following:
a. Any occurrence at the wastewater treatment facility which results in the treatment of significant
amounts of wastes which are abnormal in quantity or characteristic, such as the dumping of the contents
of a basin or tank, the known passage of a slug of hazardous substance through the facility, or any other
unusual circumstances;
b. Any process unit failure, due to known or unknown reasons, that renders the facility incapable of
adequate wastewater treatment, such as mechanical or electrical failures of pumps, aerators,
compressors, etc.;
c. Any failure of a pumping station, sewer line, or treatment facility resulting in a by-pass directly to
receiving waters without treatment of all or any portion of the influent to such station or facility; or
d. Any time that self -monitoring information indicates that the facility is not in compliance with its permit
limitations.

Occurrences outside normal business hours may also be reported to the Division's Emergency Management
personnel at telephone number [phone], or [phone]. Persons reporting such occurrences by
telephone shall also file a written report in letter form within five (5) days following first knowledge of the
occurrence. This report must outline the actions taken or proposed to be taken to ensure that the problem
does not recur.
29. Upon classification of the wastewater treatment and spray irrigation facilities by the Water Pollution
Control System Operators Certification Commission (WPCSOCC), the Permittee shall designate and
employ a certified operator to be in responsible charge (ORC) and one or more certified operator(s) to be
back-up ORC(s) of the facilities in accordance with 15A NCAC 8G .0201. The ORC shall visit the
facilities in accordance with 15A NCAC 8G .0204 or as specified in this permit and shall comply with all
other conditions specified in these rules.
30. The recycle lagoons shall not be located within 100 feet of water supply wells.
31. Within sixty (60) days of permit issuance, the permittee shall submit two original copies of a scaled site
map (scale no greater than 111=100'); however, special provisions may be granted upon prior approval for
large properties. The map(s) must include the following information:
a. The location and identity of each monitoring well.
b. The location of major components of the waste disposal system.
c. The location of property boundaries within 500 feet of the disposal area(s).
d. The latitude and longitude of the established horizontal control monument.
e. The elevation of the top of the well casing (which shall be known as the "measuring point") relative
to a common datum...
f. The depth of water below the measuring point at the time the measuring point is established.
g. The location of Review and Compliance Boundaries.
h. The date the map is prepared and/or revised.
32. Control monuments shall be installed in such a manner and made of such materials that the monument will
not be destroyed due to activities that may take place on the property. Maps and any supporting
documentation shall be sent to the Aquifer Protection Section's Central Office at 1636 Mail Service Center,
ille Regional Office at the Aquifer Protection Section, 610
Raleigh, NC 27699-1636, and to the Mooresv
East Center Avenue/ Suite 301, Mooresville, NC 28115.
The permittee is responsible for the geographic accuracy of any map submitted, however produced.
33. Monitor wells MW-1, JAW-2, MW-3, and the stream behind the property shall all be sampled every
February, June and October for the following parameters:
Total Dissolved Solids PH
Sulfates (SO,) Specific Conductivity
Aluminum Total Suspended Solids
Water Level
The measurement of water levels must be made prior to sampling for the remaining parameters. The depth
to water in each well shall be measured from the surveyed point on the top of the casing.
The results of the sampling and analysis shall be received on the most -recent version of "Groundwater
Quality Monitoring: Compliance Report Form" (i.e., GW-59 Form) with copies of the laboratory analyses
attached by the Division's Aquifer Protection Section at the following address on or before the last working
day of the month following the sampling month:
4

NCDENR-DWQ
Information Processing Unit
1617 Mail Service Center
Raleigh, NC 27699-1617
Updated blank reporting forms may be downloaded from the web site for the Division's Aquifer Protection
Section at http://gw.ehnr.state.nc.its/ or requested from the address listed above.
34. The COMPLIANCE BOUNDARY for the disposal system is specified by regulations in 15A NCAC 2L,
Groundwater Classifications and Standards. The Compliance Boundary for the disposal system individually
permitted on or after December 30, 1983 is established at either 250 feet from the waste disposal area, or 50
feet within the property boundary, whichever is closest to the waste disposal area. An exceedance of
Groundwater Quality Standards at or beyond the Compliance Boundary is subject to remediation action
according to 15A NCAC 2L .0106(d)(2).
35. The REVIEW BOUNDARY is established around the disposal system midway between the Compliance
Boundary and the perimeter of the waste disposal area. Any exceedance of standards at the. Review
Boundary shall require action in accordance with 15A NCAC 2L .0106(d)(1).
36. Any additional groundwater quality monitoring, as deemed necessary by the Division, shall be provided.
37. Permittee, at least six (6) months prior to the expiration of this permit, shall request its extension. Upon
receipt of the request, the Commission will review the adequacy of the facilities described therein, and if
warranted, will extend the permit for such period of time and under.such conditions and limitations as it
may deem appropriate.
Permit issued this the 22nd day of December, 2004
NORTH OLINA ENVIRC
AL MANAGEMENT COMMISSION
Alan W. Klimek, P.E., Director
Division of Water Quality
By Authority of the Environmental Management Commission
Permit Number WQ0002702

Michael F. Easley, Govemor .
William G. Ross Jr., Secretary
North Carolina Department of Environment and Natural Resources
Alan W. Klimek, P.E., Director
Division of Water Quality
December 28, 2004
Mr. Randall Andrews
Alchem, Inc.
8135 Red Road
Rockwell, NC 28138
Subject: Permit No. WQ0002702
Alchem, Incorporated
Industrial Recycle -Bauxite Process
Rowan County
Dear Mr. Andrews:
In accordance with your request for renewal received September 23, 2004, we are forwarding herewith
Permit No. WQ0002702, dated December 28, 2004, to Alchem, Inc. for the continued operation of the three (3)
lagoon recycle system.
This permit shall be effective from the date of issuance until November 30, 2009, shall void Permit No.
WQ0002702 issued January 21, 1999, and shall be subject to the conditions and limitations as specified therein.
Please pay particular attention to the monitoring requirements in this permit.. Groundwater sampling is now
required in monitor wells MW-1, MW-2, and MW-3 and surface water sampling will be performed on the stream
behind the property every February, June, and October for Total Dissolved Solids, pH, Sulfates, Specific
Conductivity, Aluminum, Total Suspended Solids, and water level. A scaled map of the facility must be prepared
and submitted to the Division. The recycled water will. be required to have a pH of not less than 6.0 as it leaves
the wash area and goes into the storage lagoon. A site life estimate and a long range plan for future residuals
disposal are also required. The material removed from Lagoons 1 & 2 during the next lagoon cleanout is required
to have pH readings taken and documented, and the liners of each lagoon are to be inspected and tested (as
necessary) by a Professional Engineer. Repairs are to. be made as needed. The pennittee is required to seek
alternate disposal/re-use options for the fill and submit a proposed schedule for their implementation. The City
Water Supply Line is required to be re -located to the upper perimeter of the residual fill area. Failure to establish
an adequate system for collecting and maintaining the required operational information will result in future
compliance problems. The berm which has been constructed around the residual fill area is t6 be maintained so as
to keep the fill and/or accumulated rainwater from leaving the fill area.
This permit is being renewed by itself and is not being combined with Permit No. WQ0016338 at this
time, as the application for the renewal of Permit No. WQ0016338 has not yet been received by the Division.
NorthCarolina
Aawnilly
Aquifer Protection Section 1636 Mail Service Center Raleigh, NC 27699-1636 Phone [phone] Customer Service
Internet: h2o.ennstate.ne.us 2728 Capital Boulevard Raleigh, NC 27604 FAX [phone]
An Equal Opportunity/Affirmative Action Employer— 50% Recycled/10% Post Consumer Paper

A Notice of Violation was issued against the facility under Permit No. WQ0002702 on January 7, 2001
for violations of State Groundwater Quality Standards as,evidenced by the laboratory analyses of groundwater
samples taken during the course of monitoring on -site monitor wells.
A Notice of Violation was also issued against the facility under Permit No. WQ0002702 on May 12, 2003
in response to a release of residuals into a drainage/wooded area and an intermittent stream. The permittee was
cited for failing to properly operate and maintain the facility as a non -discharge facility, failure to cease reuse
operation once nuisance conditions existed, failure to provide adequate provisions to prevent surface runoff from
conveying pollutants into surface waters, and failure to notify the Division of the residuals release into the
receiving stream.
If any parts, requirements, or limitations contained in this permit are unacceptable, you have the right to
request an adjudicatory hearing upon written request within thirty (30) days following receipt of this permit. This
request must be in the form of a written petition, conforining to Chapter 150B of North Carolina General Statutes,
and filed with the Office of Administrative Hearings, 6714 Mail Service Center, Raleigh, NC 27699-6714.
Unless such demands are made this permit shall be final and binding.
6162.
If you need additional information concemin-R this matter, please contact David Goodrich at (919) 715-
44Alan W
cc: Rowan County Health Department
Mooresville Regional Office, Aquifer Protection Section
Technical Assistance and Certification Unit
�1qui er Protection.. Central Files
Permit Files
Klimek, P.E.
2

NORTH CAROLINA
ENVIRONMENTAL MANAGEMENT COMMISSION
DEPARTMENT OF ENVIRONMENT AND NATURAL RESOURCES
RALEIGH
RECYCLE SYSTEM PERMIT
In accordance with the provisions of Article 21 of Chapter 143, General Statutes of North Carolina as amended,
and other applicable Laws, Rules, and Regulations
PERMISSION IS HEREBY GRANTED TO
Alchem, Incorporated
Rowan County
FOR THE
continued operation of a wastewater recycle system consisting of 3 settling lagoons to serve Alchem, Inc., with no
discharge of wastes to the surface waters, pursuant to the application received September 23, 2004, and in
conformity with the project plan, specifications, and other supporting data subsequently filed and approved by the
Department of Environment and Natural Resources and considered a part of this permit.
This permit shall be effective from the date of issuance until November 30, 2009, shall void Permit No.
WQ0002702 issued January 21, 1999, and shall be subject to the following specified conditions and limitations:
1. This permit shall become voidable unless the facilities are constructed in accordance with the conditions of
this permit, the approved plans and specifications, and other supporting data.
This permit is effective only with respect to the nature and volume of wastes described in the application
and other supporting data.
3. The facilities shall be properly maintained and operated at all times.
4. This permit is not transferable. In the event there is a desire for the facilities to change ownership, or there
is a name change of the Permittee, a formal permit request must be submitted to the Division of Water
Quality (Division) accompanied by an application fee, documentation from the parties involved, and other
supporting materials as may be appropriate. The approval of the request will be considered on its merits
and may or may not be approved.
5. In the event that the facilities fail to perform satisfactorily, including the creation of nuisance conditions, the
Permittee, shall take immediate corrective action, including those actions that may be required by this
Division, such as the construction of additional or replacement treatment or disposal facilities.
6. The residuals generated from these treatment facilities must be disposed in accordance with General Statute
143-215.1 and in a manner approved by the Division.
7. The issuance of this permit shall not relieve the Permittee of the responsibility for damages to surface or
groundwaters resulting from the operation of this facility.

The facilities shall be effectively maintained and operated as a non -discharge system to prevent the
discharge of any wastewater resulting from the operation of this facility.
9. Diversion or bypassing of untreated wastewater from the treatment facilities is prohibited.
10. Freeboard in all of the lagoons shall not be less than two feet at any time.
11. Waste -level gauges, to monitor waste levels in the settling lagoons, shall be installed within 60 days of
issuance of this permit. These gauges shall have readily visible permanent markings indicating the
maximum liquid level at the top of the temporary liquid storage volume, minimum liquid level at the
bottom of the temporary liquid storage volume, and top of the dam elevations. Caution must betaken not to
damage the integrity of the liner when installing the gauges.
12. A protective vegetative cover shall be established and maintained on all earthen basin embankments
(outside toe of embankment to maximum pumping elevation), berms, pipe runs, erosion control areas, and
surface water diversions. Trees, shrubs, and other woody vegetation shall not be allowed to grow on the
earthen basin dikes or embankments. Earthen basin embankment areas shall be kept mowed or otherwise
controlled and accessible.
13. Within ninety (90) days of permit issuance, the recycled system shall be required to keep the recycled water
at a pH of not less than 6.0 Standard Units as it leaves the wash area and goes to the storage lagoon.
14. Within ninety (90) days of permit issuance, the permittee shall submit a site life estimate for the fill area.
15. Within ninety (90) days of permit issuance, the permittee shall submit a long-range plan for future residuals
disposal that shall include a timetable for implementation.
16. During the upcoming clean out of Lagoons 1 & 2 (scheduled for the spring season of 2005), a pH reading
shall be taken and documented on every load of material removed from the lagoon and placed in the sand
fill area. This information shall be conveyed to the Division within thirty (30) days of completion of the
clean out procedure.
17. At the conclusion of the clean out of Lagoons 1& 2 (scheduled for the spring season of 2005), the clay
liners of the lagoon shall be inspected and tested (as necessary) by a Professional Engineer. Repairs to the
liners shall be made as needed and prior to the resumption of use.
18. The permittee shall actively seek alternate disposal/re-use options for the fill produced at the facility. An
alternate means of disposal, along with a proposed schedule for its implementation, shall be identified
within one (1) year of permit issuance and reported by letter to the Division's Central Office at the Aquifer
Protection Section, 1636 Mail Service Center, Raleigh, NC 27699-1636 and to the Mooresville Regional
Office at the Aquifer Protection Section, 610 East Center Avenue/ Suite 310, Mooresville, NC 28115.
19. The City Water Supply Line shall be re -located to the upper perimeter of the residual fill area within one (1)
year of permit issuance. Any problems with implementing this condition in a timely fashion shall be
reported by letter to the Division's Central Office at the Aquifer Protection Section, 1636 Mail Service
Center, Raleigh, NC 27699-1636 and to the Mooresville Regional Office at the Aquifer Protection Section,
610 East Center Avenue/ Suite 301, Mooresville, NC 28115.
20. Any monitoring deemed necessary by the Division to insure surface and ground water protection will be
established and an acceptable sampling reporting schedule shall be followed.
21. Adequate inspection, maintenance, and cleaning shall be provided by the Permittee to insure proper
operation of the subject facilities. The berm which has been constructed around the residual fill area shall be
maintained so as to keep the fill and/or accumulated rainwater from leaving the fill area.

22. The Permittee or his designee shall inspect the wastewater recycle facilities to prevent malfunctions and
deterioration, operator errors and discharges which may cause or lead to the release of wastes to the
environment, a threat to human health, or a nuisance. The Permittee shall maintain an inspection log or
summary including at least the date and time of inspection, observations made, and any maintenance,
repairs, or corrective actions taken by the Permittee. This log of inspections shall be maintained by the
Permittee for a period of three years from the date of the inspection and shall be made available to the
Division or other permitting authority, upon request.
23. Any duly authorized officer, ,employee, or representative of the Division may, upon presentation of
credentials, enter and inspect any property, premises or place on or related to the recycle system at any
reasonable time for the purpose of determining compliance with this permit, may inspect or copy any
records that must be maintained under the terms and conditions of this pennit, and may obtain samples of
groundwater, surface water, or leachate.
24. The annual administering and compliance fee must be paid by the Permittee within thirty (30) days after
being billed by the Division. Failure to pay the fee accordingly may cause the Division to initiate action to
revoke this permit as specified by 15A NCAC 2H .0205 (c)(4).
25. Failure to abide by the conditions and limitations contained in this pernlit may subject the Permittee to an
enforcement action by the Division in accordance with North Carolina General Statute 143-215.6A to 143-
215.6C.
26. The issuance of this permit does not exempt the Permittee from complying with any and all statutes, rules,
regulations, or ordinances which may be imposed by other government agencies (local, state, and federal)
which have jurisdiction, including but not limited to applicable river buffer rules in 15A NCAC 213.0200,
erosion and sedimentation control requirements in 15A NCAC Chapter 4 and under the Division's General
Permit NCGO10000, and any requirements pertaining to wetlands under 15A NCAC 2B .0200 and 2H
.0500.20.
27. A set of approved plans and specifications for the subject project must be retained by the Permittee for the
life of this project.
28. Noncompliance Notification:
The Permittee shall report by telephone to the Mooresville Regional Office, telephone number (704) 663-
1699, as soon as possible, but in no case more than 24 hours or on the next working day following the
occurrence or first knowledge of the occurrence of any of the following:
a. Any occurrence at the wastewater treatment facility which results in the treatment of significant
amounts of wastes which are abnormal in quantity or characteristic, such as the dumping of the contents
of a basin or tank, the known passage of a slug of hazardous substance through the facility, or any other
unusual circumstances;
b. Any process unit failure, due to known or unknown reasons, that renders the facility incapable of
adequate wastewater treatment, such as mechanical or electrical failures of pumps, aerators,
compressors, etc.;
c. Any failure of a pumping station, sewer line, or treatment facility resulting in a by-pass directly to
receiving waters without treatment of all or any portion of the influent to such station or facility; or
d. Any time that self -monitoring information indicates that the facility is not in compliance with its permit
limitations.
3.

Occurrences outside normal business hours may also be reported to the Division's Emergency Management
personnel at telephone number [phone], or [phone]. Persons reporting such occurrences by
telephone shall also file a written report in letter form within five (5) days following first knowledge of the
occurrence. This report must outline the actions taken or proposed to be taken to ensure that the problem
does not recur.
29. Upon classification of the wastewater treatment and spray irrigation facilities by the Water Pollution
Control System Operators Certification Commission (WPCSOCC), the Permittee shall designate and
employ a certified operator to be in responsible charge (ORC) and one or more certified operator(s) to be
back-up ORC(s) of the facilities in accordance with 15A NCAC 8G .0201. The ORC shall visit the
facilities in accordance with 15A NCAC 8G .0204 or as specified in this permit and shall comply with all
other conditions specified in these rules.
30. The recycle lagoons shall not be located within 100 feet of water supply wells.
31. Within sixty (60) days of permit issuance, the permittee shall submit two original copies of a scaled site
map (scale no greater than 1 "=100'); however, special provisions may be granted upon prior approval for
large properties. The map(s) must include the following information:
a. The location and identity of each monitoring well.
b. The location of major components of the waste disposal system.
c. The location of property boundaries within 500 feet of the disposal area(s).
d. The latitude and longitude of the established horizontal control monument.
e. The elevation of the top of the well casing (which shall be known as the "measuring point") relative
to a common datum.
f. The depth of water below the measuring point at the time the measuring point is established.
g. The location of Review and Compliance Boundaries.
h. The date the map is prepared and/or revised.
32. Control monuments shall be installed in such a manner and made of such materials that the monument will
not be destroyed due to activities that may take place on the property. Maps and any supporting
documentation shall be sent to the Aquifer Protection Section's Central Office at 1636 Mail Service Center,
Raleigh, NC 27699-1636, and to the Mooresville Regional Office at the Aquifer Protection Section, 610
East Center Avenue/ Suite 301, Mooresville, NC 28115.
The permittee is responsible for the geographic accuracy of any snap submitted, however produced.
33. Monitor wells MW-1, MW-2, MW-3, and the stream behind the property shall all be sampled every
February, June and October for the following parameters:
Total Dissolved Solids
Sulfates (SOO
Aluminum
Water Level
pH
Specific Conductivity
Total Suspended Solids
The measurement of water levels must be made prior to sampling for the remaining parameters. The depth
to water in each well shall be measured from the surveyed point on the top of the casing.
The results of the sampling and analysis shall be received on the most -recent version of "Groundwater
Quality Monitoring: Compliance Report Form" (i.e., GW-59 Form) with copies of the laboratory analyses
attached by the Division's Aquifer Protection Section at the following address on or before the last working
day of the month following the sampling month:
4

NCDENR-DWQ
Information Processing Unit
1617 Mail Service Center
Raleigh, NC 27699-1617
Updated blank reporting forms may be downloaded from the web site for the Division's Aquifer Protection
Section at http:Hgw.ehnr.state.nc.us/ or requested from the address listed above:
34. The COMPLIANCE BOUNDARY for the disposal system is specified by regulations in 15A NCAC 2L,
Groundwater Classifications and Standards. The Compliance Boundary for the disposal system individually
permitted on or after December 30, 1983 is established at either 250 feet from the waste disposal area, or 50
feet within the property boundary, whichever is closest to the waste disposal area. An exceedance of
Groundwater Quality Standards at or beyond the Compliance Boundary is subject to remediation action
according to 15A NCAC 2L-.0106(d)(2).
35. The REVIEW BOUNDARY is established around the disposal system midway between the Compliance
Boundary and the perimeter of the waste disposal area. Any exceedance of standards at the Review
Boundary shall require action in accordance with 15A NCAC 2L .0106(d)(1).
36. Any additional groundwater quality monitoring, as deemed necessary by the Division, shall be provided.
37. Permittee, at least six (6) months prior to the expiration of this permit, shall request its extension. Upon
receipt of the request, the Commission will review the adequacy of the facilities described therein, and if
warranted, will extend the permit for such period of time and under such conditions and limitations as it
may deem appropriate.
Permit issued this. the 22nd day of December, 2004
NORTH OLINA ENVIRONMENTAL MANAGEMENT COMMISSION
i
Alan W. Klimek, P.E., Director
Division of Water Quality
By Authority of the Environmental Management Commission
Permit Number WQ0002702
5

. NCDENR MRO Fax:[phone] Mar 21 2005 16:18 P.01
EM INC*
ALCIR. sajpc and e:
� —8,,35v,4 Road
S+orpor�te Offi�s Rockwell, NC 28138
'10¢z Blue TbM&lphw d TeL [phone]o8 —Fax V4-279-8413
god$prhip,NC 2$377 pdn�atehemC cbi
TeL [phone]= F= 9i0-843,57319
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February 10, GV�
Div
Mr. Alan, W. Kli
inek,
Director
Aquifer Protection Section
DIVISION OF WATER QUALM
5.2 North Salisbury Street
gam. Floor.
Raleigh, NC 27604
Dear Mr- Klimek:
ceived our permit No.: WQ0002701 Your letter is dated December t
NVe reaoa5. We would like to
�oo�. �ATe did not receive the permit until examne$and respond to all of the
ask for an extension of time of 90 es that we will need
changes. We feel that because of all of the extensive Chang
this extra time. Thank you for your help.
Best regards, F
ALCHEM, INC.
it
o �
Wayne Dry e,
plant .Manager
vll . moo
Mr: John. Reuscher
cc: tic SeLyi
. 1VIid Atlan
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H�
(1pm#ZC-13
ASl 370 • i �p"y" l
gl� .

k ALCHEM, INC.
Corporate Office Sales and Manufacturing
2042 Buie Philadelphus Road 8135 Red Road
Red Springs, NC 28377 Rockwell, NC 28138
Tel. [phone] --- Fax [phone] / Tel. [phone] Fax [phone]
[e-mail] - [e-mail]
Alit
March 8, `2005
MAR ,2 2 2005
DIV. OF WATER QUALITY
DIRECTOR'S 0q: -
Mr. -Alan W. Klimek, P.E.
Director �.
Aquifer Protection; Section C:)
DIVISION OF WATER QUALITY r'
512 North Salisbury Street
9`h. Floor N
Raleigh, NC 27604 �*3
Subject: Permit#: WQ0002702 "o o
.. 20
o Cf)
Dear Mr. Klimek M ..
We have had a chanceto review the proposed permit. We have questions and objections to' the
following parts.
We object to the necessity of extensive data generation for the water sampling in the stream. We
request that this water sampling be done yearly. We plan to block any water from leaving the
sandy area and use this water in our process:
No. 11 - We have no idea what these gauges are and we can visually look at. the levels.. We see
no real reason to install them. Our standard operating procedures provide for us to leave plenty of
operating room in the storage basins.
Additionally, we do not have any waste on our property. Allmaterialis beneficially used.
13. This is extremely difficult and we would propose to use a ph of 2 as a benchmark. If we
add Lime. or any other Alkali to the system we cannot use the Aluminum value to put
back into the process. Our rainwater is ph 5.0 or less.
14. 'Which fill area?
15. We wish to continue using the sand as Alchem, Inc. intends to build on the level land that
has been generated. Alchem, Inc. is using this sand for a beneficial use. There is no
waste. We plan to build a production facility on this built up area.
16. How can one take the ph of a solid?
Loll Alchem, Inc. standard operating procedure when removing sand from the Lagoons is to
stay two feet away from the ,walls and bottom. Therefore, there is no breech and no way
to examine the liner. It was originally inspected and certified by a professional engineer.
f There is no reason to think any change has occurred.
18. Alchem, Inc. is not disposing of. anything. Alchem, Inc. is using the sand and using the
1 rainwater from the berm area.

ALCHEM, INC
Coryorate ®`ice Sales and Manufacturing
8135 Red Road
2042 Buie Philadelphus Road Rockwell, NC 28138
Red Springs, NC 28377 Tel. [phone] — Fax [phone]
Tel. [phone] — Fax [phone] [e-mail]
[e-mail]
19. What is the point of moving a city water line? This is process water only. Also, the city
water line has been cut off from the facility and turned off.
29. We do not have a wastewater treatment and spray irrigation facility. Therefore, we feel
there is no need for this provision.
31. We are not familiar with this item and do not understand why we should be required to
do all of this.
I feel that this permit if enacted would put our company out of business. It is economically
detrimental to us and our employees. I would like to point out that in your letter you stated that a
Nov was issued against our facility in January 7, 2001 for violations of State Groundwater
Quality Standards. I had to hire a consultant and spend $ 4,000.00 to prove that the person
issuing this Nov was wrong. After proving that it was wrong I expected to receive a letter of
apology. I also thought that your office might offer to reimburse our company for our money and
time spent on this matter. Instead, I received a letter saying that if we were every caught doing
something wrong we would be severally penalized.
The Nov in May 12, 2003 was caused by unusually large amounts of rain that just over whelmed
us. We have put up a beam that should keep this from every happening again. I look forward to
meeting with you.
Best regards,
ALCHEM, INC.
Randall Andrews,
Sales Manager
vll

William G. Ross Jr., SP
North Carolina Department of Environment and Natural I-
.r Alan W. Klimek, P.L
0 rG Division of Watet
. AQUIFER PROTECTION SECTIC,.
April 22, 2005
CERTIFIED MAIL
RETURN RECEIPT REQUESTED
Mr. Randall Andrews, Sales Manager
ALCHEM, Inc.
2042 Buie Philadelphus Road
Red Springs, NC 28377
and
ALCHEM,.Inc.
8135 Red Road
Rockwell, NC 28138. .
RE: Notice of Regulatory Requirements
Permit #WQ0002702
Recycle System, Rowan County
Dear Mr. Andrews,
This letter is in response to your letters dated February 10 and March 8, 2005, to Mr. Alan
Klimek, P.E., regarding the subject recycle permit. We are writing to clarify your responsibilities
under this permit and to address the questions that you have raised.
The subject permit is neither draft nor proposed and extensions" for comments about
issued permits cannot be given. However, the cover letter with your permit provided guidance
concerning your right to request an adjudicatory hearing upon written request within 30 days of
receipt of the issued permit. We understand that the Office of Administrative Hearings did not
receive such a request from you. We are aware that there are a few factual errors regarding the
permit system description. These errors will be corrected and a corrected copy will be sent to you
in the near future.
The following numbered points are in 'response to your questions and refer to . the
numbered permit conditions:
#11 refers to the level of liquid contained In the settling lagoons. This requirement was also in
the previous permit (WQ0002702 item #11) for this facility. It requires a freeboard for all the
lagoons of no less than 24 inches or two feet at any time. To properly monitor the freeboard of
your lagoons you need to install a gauge in each lagoon to determine the level of the liquid in
the lagoons. This is a standard requirement for permitted systems with lagoons. .
#13 refers to the pH of the wash water used to wash the acid from the bauxite. Past problems
Of low pH runoff from the bauxite fill area came from residual sulfuric acid left on the bauxite
residuals that were removed from the settling lagoons and into the fill area.
Division of water Quality I Aquifer Protection Section I Mooresville Regional Office Phone: [phone] Fax: [phone] rifthCarol
One 610 East Center Street, Suite 301, Mooresville, NC 28115 jaInternet: httD://gw.ehnr state nc us

J Page 2 of 2
/ April 22, 2005
i
f
#14 refers to the area where you have been putting the bauxite residuals generated by the
recycle system process.
#15 refers to a long range plan for your bauxite residuals. As you know, there have been
problems keeping the bauxite residuals on your site. The Division of Water Quality (Division)
wants to know what you plan to do with your residuals in the future.
#16 refers to the bauxite residuals that you want to remove from the settling lagoons. Past
problems of low pH runoff from the bauxite fill area came from residual sulfuric acid on the
bauxite residuals removed from the settling lagoons. The Division wants to make sure that
any future bauxite residuals are sufficiently "washed/rinsed" of any residual sulfuric acid prior
to sending the material to the fill area.
#17 refers to testing the lagoon liner for integrity. Your standard operating procedures do not
insure that the lagoon liner is still intact and that it has not been compromised during previous
cleanouts.
#18 refers to the fact that the fill area will eventually be filled and ALCHEM will need an
altemabve method of disposal..
#19 refers to the municipal water line that was installed inside the fill area. Due to past issues
with the bauxite residual fill area erosion, the Division prefers to avoid future erosion issues by
not allowing a water line in the fill area.
#29 is standard permit language should the Division decide to. classify your wastewater
system.
#31 refers to the monitoring well testing frequency. The monitoring parameters and frequency
have been deemed necessary by the department.
Should you have any more questions concerning this permit, please call me at (704) 663-
1699 or contact me by email at ellen.huffman(cDncmail.net.
Sincerely,
o CD
Cn C=rTl
elen Huffman
Environmental Specialist
Mooresville Regional Office Cn o�
rnM
---t.x�
4w
O tn;.
Cc: Alan Klimek, P.E. Director w -.
Kim Colson, Supervisor, LAU
David Goodrich, LAU
Shannon Thomburg;IAU
Central Files
MRO files

Alchem history from MRO files
By Ellen Huffman March 2.005
Please note that the author has found files in several sections/divisions due to the different types of permits issued for the
same process i.e., residuals and recycle.
May 9, 1985 — A memorandum concerning a spill/runoff into creek (investigated on Nov. 15, 1984)
from the ALCHEM plant and drinking water well contamination. All stream samples showed high
concentrations of Al, Fe, Na; and Zn:
May 14, 1986 — DEM Groundwater section memo from Len Bramble to Bill. Crawford. Subject
application of new permit APN 0076633 and GW 8680. "We have received copy of the above
referenced application which was sent to your regional office for comment on or about May 12, 1986"...
Dec. 30, 1985 — WQ MRO complaint investigation report summing up issues from multiple spills -
throughout the last 12 months since the Nov. 15, 1984 investigation:
Dec. 6, 1984 - Complaint from City of Rockwell of white color in creek.
Jan. 2 & 7, 1985 — WQ samples the stream. Samples come back with extremely high
concentrations of Al, Fe, Na, and Zn. (data in file)
Feb. 28, 1985 — stream samples still show high levels of Al, Fe, & Na.
March 26, 1985 — WQ received another complaint from a resident in the ALCHEM area.
April 1, 1985 - Soil samples showed high. levels of Al, Fe, & Na. Well samples taken at the
sametime were high in Al & Na. Down stream samples showed high concentrations of Al, Fe,
Na, and Zn. Upstream samples did not show high concentrations of Al; Fe, Na, and Zn. Also
discovered the path of runoff from ALCHEM property to the stream.
May 9,' 1985 — A memorandum from Monty Payne & Jesse Wells to Bill Jeter concerning '
multiple complaints from neighbors of ALCHEM.
June 11, 1985 - stream samples once again show high levels. of Al, Fe, & Na.
Sept. 9, 1985 — During a meeting with WQ and ALCHEM, it was determined that the ponds need
to be emptied and contaminated soil be removed or neutralized. If the lagoon was to be used it
must be lined. They also must submit an application for a non -discharge permit.
Jan. 3, 1986 --WQ staff report (Thurmon Home) for ALCHEM (APN 005232) The facility has 2
existing (un-permitted) recycle lagoons. -DEM & DHR have both conducted investigations regarding
well and groundwater contamination. ALCHEM has had to replace one. off site drinking water well,
cleaned areas affected be nm-off, and removing all liquid from the lagoons with the, intention of
removing the lagoons (excavating and removing contaminated soils). ALCHEM proposes to construct a
new recycle system. The new process will involve mixing bauxite, sulfuric acid, and water in a reactor.
The waste residuals (pH between 2.0 and 2.5) will be pumped to the proposed non -discharge recycle
1

wastewater treatment facility. The residuals from the facility will be pumped to the retention pond
where LIME will be added to raise the pH to 6 s.u. The applicant proposes to dispose of the
residuals in the county landfill. The applicant has failed to submit acceptable detailed engineering
plans and specs as requested.
Recommendations: Considering the past history of this facility, it is imperative that a thorough
evaluation be made prior to permit issuance...
Jan. 7, 1986 — a meeting in Rockwell between DEM & ALCHEM, concerning a need for a permit for
the ALCHEM facility.
Jan. 8, 1986 — DEM WQ MRO memorandum — WQ reviews an application and recommends that
ALCHEM do a thorough investigation of the present subsurface conditions prior to issuance of the
permit.
Jan. 8, 1986 — MRO GW memo from Jesse Wells to Len Bramble. GW recommends that ALCHEM do
a thorough investigation of the present subsurface conditions including directional flow and gradient of
the groundwater, lithologic description and determination of the hydraulic conductivity of the soil, and
sampling of the saturated zone as a requirement before issuance of the permit.
Jan. 30, 1986 - A letter from DENR & Community Development, regarding insufficient data to process
the permit application.
April 10, 1986 letter from DENR to ALCHEM regarding Operation of an un-permitted non -discharge
Waste Treatment System.,
May 5, 1986 ALCHEM submits a permit application for a tank spill containment area & a sand filter.
June 17, 1986 — letter from ALCHEM to DENR Addendum to application APN007633.
Sept. 12, 1986 — DEM GW — memo. Sub. Permit app. Review, ALCHEM, GW86080. Recommends
issuance of permit with 2 conditions. 1- the sand filter bed must be lined with a geotech fiber and two
layers of 6 mil. (12 mil. total) synthetic liner. 2- any groundwater monitoring deemed necessary by the
department.
September 22, 1986 — A note to file regarding a letter from ALCHEM to Thurmond Horne evaluating a
vacuum filter. Note from staff suggests that the dept. hold the permit application for four_ weeks before
returning the application to ALCHEM as incomplete.
(what happened to 1987?)
Jan. 19, 1988 - letter from DENR to ALCHEM —Subject: Project Return APN007633. In reference to
application received May 7, 1986.
Feb. 1988 — letter from ALCHEM to DENR. " I did not realize that our non -discharge Permit was, being
held. We decided to put in a sand filter enclosed in a tank..."
K

July 30, 1989 — A letter from DENR & Comm. Dev. regarding information needed for a review of
ALCHEM Ind. Recycle (WQ0001987) permit to be completed.
October 2, 1989 — from DENR to ALCHEM. Subject: Project Return (WQ0001987)
October 11, 1989 — A staff report from MRO recommends that the ERG and groundwater provide
comments before permit issuance and possible cake sludge storage issues. (Allen Hardee, MRO staff).
January 10, 1990 - DENR issues pen -nit WQ0002702 after review of Nov. 17,1989 (pen -nit) application.
(can not find copy of application in file for this date)
May 4, 1990 — a letter from ALCHEM to DENR (Carolyn McCaskill) referencing permit WQ0002702
and regarding removal of a partition between two lagoons.
May 21, 1990 A letter from ALCHEM to MR. Rex Gleason (MRO) referencing permit WQ0002702 and
regarding installed facilities ready for inspection.
October 25, 1990 — A Notice of Violation regarding a discharge of alum into the creek.
Oct. 8, 1992 — ALCHEM submits a permit application for a recycle system.
Oct. 19, 1992 — application from ALCHEM received by DEHNR(no application found in MRO files).
March 11, 1993 — GW memo regarding modification of permit WQ0002702 (concerning) proposed
sludge storage lagoons. GW recommends (two) monitoring wells.
March 23, 1993 — renewal application from ALCHEM received by DEHNR (no application found in
MRO files).
April 8, 1993 - amended permit is issued to ALCHEM.
April 20, 1993 — a letter from ALCHEM to DEHNR regarding amendment of permit WQ0002702
regarding monitoring well requirements and construction of only two lagoons rather than the original
five. Sees no need for groundwater monitoring.
April 20, 1993 — a letter from DEHNR to ALCHEM was conveying groundwater -monitoring guidance.
June 9, 1993 — memo from Don Saffrit, P.E., Asst. Chief for Teck. Support to Ted Bush Asst. Chief,
groundwater section regarding a petition (ALCHEM monitoring wells) with the Office of
Administrative hearings.
June 22, 1993 — A memo from MRO GW (David Eudy) to Jack Floyd regarding adjudication request -
concerns with sulfuric acid in large quantities and past history of non-compliance, there is ample
justification for groundwater monitoring requirements.

June 25, 1993 — A memo from Central GW to MRO GW, regarding adjudication request. "The
groundwater section stands firm with its decision to recommend groundwater monitoring to remain a
part of the permit".
June 30, 1993 — A letter from DEHNR to ALCHEM, regarding groundwater monitoring to stay in the
amended permit.
Sept. 21, 1993 — A letter from ALCHEM to NC EMC asking pernlission to drop VOC testing
requirements from the permit.
April 6, 1994 — memo from MRO GW to DEM GQ, acknowledging receipt of a permit renewal
application for ALCHEM WQ0002702.
April 27, 1994 — memo to DEM GW Compliance Group from Barbara Christian, MRO GW Supervisor
regarding a site inspection (for a permit renewal) on April 26, 1994 that raised several concerns.
• Raw aluminum ore storage issues
• Monitoring reports indicate that monitoring wells were not purged prior to sampling
• Lack of chemical analyses of the lagoon wastewater
• Inaccurate topographic site map
May 23, 1994 — A memo from Cindy Boyles to Carolyn McCaskill, regarding ALCHEM permit renewal
(permit WQ0002702) reads "nin-off into a drainage way still poses a problem to the residents directly
below grade".
June 27, 1994 — (renewed) permit WQ0002702 issued.
July 11, 1994 — A letter from DEHNR to ALCHEM, regarding (groundwater) monitoring guidance.
October 30, 1995 — A certified letter to ALCHEM from MRO GW regarding proper purging of
monitoring wells prior to sampling (permit WQ0002702).
October 20, 1998 — ALCHEM submits for a permit renewal and modification (permit WQ0002702).
Nov. 10, 1998 — A staff report by G.T. Chen includes very little comment. "pending final review and
approval by the SERG and the Groundwater Section, it is recommended that the subject permit by
renewed and modified to allow sand by-product to be mixed with clay.
December 8, 1998 — Memo from Peggy Findley, MRO, to Dr. Ken Rudo. Request for Health Rick
Evaluation for the public water supply well on the ALCHEM premises.
December 30, 1998 — a memo from Brian Wootton (MRO) to Kim Colson WQS, regarding groundwater
monitoring changes to the ALCHEM permit WQ0002702. Existing monitoring wells MW-1 & MW-2
shall be sampled Feb. & July for water level, aluminum, and pH.

William G. Ross Jr., Secretary
�✓ � / �n ry North Carolina Department of Environment and Natural Resources
VAlan W. Klimek, P.E. Director
Division of Water Quality
CERTIFIED MAIL
RETURN RECEIPT REQUESTED
'30 0,3
Mr. Randall Andrews, Sales Manage
ALCHEM, Inc.
2042 Buie Philadelphus Road'
Red Springs, NC 28377
and
ALCHEM, Inc.
8135 Red Road
Rockwell, NC 28138
Dear Mr. Andrews,
AQUIFER PROTECTION SECTION
April 22, 2005
as400 000 / 3Y'r-?,
r -4-
7 0 d 3 - aa. (, 6- o© 0 1 ; ,SS",-;- - a] �'-3
RE: Notice of Regulatory Requirements
Permit #W00002702
Recycle System, Rowan County
This letter is in response to your letters dated February 10 and March 8, 2005, to Mr. Alan
Klimek, P.E., regarding the subject recycle permit;' We are writing to clarify your responsibilities
under this permit and to address the questions that you have raised.
The subject permit is. neither draft nor proposed and "extensions" for comments about
issued permits cannot be given. However, the cover letter with your permit provided guidance
concerning your right to request an adjudicatory hearing upon written request within-30 days of
receipt of the issued permit. We understand that the Office of Administrative Hearings did not
receive such a request from you. We are aware that there are a few factual errors regarding the
permit system description. These errors will be corrected and a corrected copy will be sent to you
in the near future.
The following numbered points are in response to your questions and refer to the
numbered permit conditions:
#11 refers to the level of liquid contained in the settling lagoons. This requirement was also in
the previous permit (WQ0002702 item #11) for this facility. It requires a freeboard for all the
lagoons of no less than 24 inches or two feet at any time. To properly monitor the freeboard of
your lagoons you need to install a gauge in each lagoon to determine the level of the liquid in
the lagoons. This is a standard requirement for permitted systems with lagoons.
#13 refers to the pH of the wash water used to wash the acid from the bauxite. Past problems
of low pH runoff from the bauxite fill area came from residual sulfuric acid left on the bauxite
residuals that were removed from the settling lagoons and into the fill area.
_One ®1
Division of Water Quality / Aquifer Protection Section / Mooresville Regional Office Phone: [phone] Fax: [phone]�JhCaCar
610 East Center Street, Suite 301, Mooresville, NC 28115 Internet: http://aw.ehnr.state.nc.us f/ � b AIA

rage t or Z
April 22, 2005
#14 refers to the area where you have been putting the bauxite residuals generated by the
recycle system process.
#15 refers to a long range plan for your bauxite residuals. As you know, there have been
problems keeping the bauxite residuals on your site. The Division of Water Quality (Division)
wants to know what you plan to do with your residuals in the future.
#16 refers to the bauxite residuals that you want to remove from the settling lagoons. Past
problems of low pH runoff from the bauxite fill area came from residual sulfuric acid on the
bauxite residuals removed from the settling lagoons. The Division wants to make sure that
any future bauxite residuals are sufficiently "washed/rinsed" of any residual sulfuric acid prior
to sending the material to the fill area.
#17 refers to testing the lagoon liner for integrity. Your standard operating procedures do not
insure that the lagoon liner is still intact and that it has not been compromised during previous
cleanouts.
#18 refers to the fact that the fill area will eventually be filled and ALCHEM will need an
altemative method of disposal.
#19 refers to the municipal water line that was installed inside the fill area. Due to past issues
with the bauxite residual fill area erosion, the Division prefers to avoid future erosion issues by
not allowing a water line in the fill area.
#29 is standard permit language should the Division decide to classify your wastewater
system.
#31 refers to the monitoring well testing frequency. The monitoring parameters and frequency
have been deemed necessary by the department.
Should you have any more questions concerning this permit, please call me at (704) 663-
1699 or contact me by email at ellen.huffman aamcmail.net.
Sincerely,
Ellen Huffman
Environmental Specialist
Mooresville Regional Office
Cc: Alan Klimek, P.E. Director
Kim Colson, Supervisor, LAU
David Goodrich, LAU
Shannon Thornburg, LAU
Central Files
MRO files

09/19/2005 12:43 919-715-0588 NCDE&NR/WATER QUAL PAGE 01
• - ' - FAX M. : Aug. 27 2M 12:03PM PI
Cornands !R ce
20a Buis Phbfthw Road
Re :: so NC 2a377•
-::c7z�mtnek '
August 15. 2005
ALCHEM,,'I.NC.
"es aftd Matti orcturing
WS5 Red Rand
hoCSevn g, KC 9"
TEL [phone]M — Fax 704279-MIS
• -- • pdcyealchem(�d�untennehnet
Ms. ShannOn Thomburg
14MENR
Raleigh, NC
` Dear Ms Thombrurg:
Would you please look at our lagoon pennit and sea if thm is any wa' y you can relax the
pmvis%n having to do with pal of the lagoon water. We had spoken about this pmwWon in
MooremMe at our mediuig. The well water that we use to wash the sand is less than 6.0 and
always has been. 1 also know that you can Look at our,moaiicMng wells and see that there
has bm no increase in tine aluminum at all, I can send you all of these resift if you like.
We also have *a results graph form for rosy viewing.
Thank you for your consideration.
Sestmm
ALCMN,1NC
Randaii F. Ate,
Fmddent
ram:

ALCHEM, INC.
! Qdrporate Qf"
2o42 Buie Philadeiphus Road
Red Springs, NC 2.8377
Tel. [phone] r Fax [phone]
[e-mail]
February 10, 2005
Mr. Alan W. Klimek, P.E
Director
Aquifer Protection Section
DIVISION OF WATER QUALITY
Sit North Salisbury Street
gth. Floor
Raleigh, NC 27604
Dear Mr. Klimek:
ales and M ufa ri
8135 Red Road
Rockwell, NC 28138
Tel. [phone]o8 — Fax [phone]
[e-mail]
We received our permit No.: WQ0002702. Your letter is dated December 28,
2004. We did not receive the permit until January 18, 2005. We would like to
ask for an extension of time of go days to examine and respond to all of the
changes. We feel that because of all of the extensive changes that we will need
this extra time. Thank you for your help.
Best regards,
ALCHEM, INC.
U&Pr a— OA
Wayne Drye,
CA
c
Plant Manager
r�*v
AlMP
cc: Mr. John Reuscher
4=
Mid Atlantic Services
."z
�
x�
r
�. ra

NCDENR MRO Fax:[phone] Mar 23 2005 13:57 P.05
g. The facilities shall be effectively maintained .and operated as a non-disebarge system to prevent the
discharge of any wastewater resulting from the operation of this facility.
9_ Diversion or bypassing of untreated wastewater from the treatment facilities is prohibited.
10. Freeboard in all of the lagoons shall not be less than two feet at any time .
11, Waste -level gauges, to monitor c✓rite levels in the settling lagoons, shall be installed within 60 days of
issuance of this permit. These gauges shall have readily visible permanent markings indicating the'
rna--cimum liquid level at the top of the temporary liquid storage volume, minimum liquid level at the
bottom of the temporary liquid storage volume, and top of the dam elevations. Caution must be taken not to
damage the integrity of the liner when installing the gauges.
12. A protective vegetative cover shall be established and maintained on e ?�h.en asieareas, nkments
(outside toe of embankment to,naximum pumping elevation), berms, pipe control and
row on the
Surface water dikes Q embankments. EartheTrees, shrubs, and n basin embankment areas shall bther woody vegetation shall note kept owed or otherwise
earthen basin di .
controlled and accessible.
13, Within ninety (90) days of pernvt issuance, the recycled systcrn shall be required to keep the recycled water
at a pH of not less than 6.0 Standard Units as it leaves the wash area and goes to the storage lagoon,
14_ Within ninety (90) days of permit issuance, the penaiittee shall submit a site life estimate for the fill area. .
ine 90 days of permit issuance, the permittee shall submit a lop g-range plan for future residuals
15. n
Within tY )
disposal that shall include a timetable for implementation.
16.. During the upcoming clean out of Lagoons 1 & 2 (scheduled for the spring season of 2005), apH reading
in the sand
shall be taken and documented on every load of material removed from, the lagoon 30 days. of the
fill- area. This information shall be conveyed to the Division within thirty (.) y .
clean out procedure. '
17. Ai the conclusion of the clean out of Lagoons 1& 2 (scheduled for the spring season of 2005), the clay
linens of the lagoon shall be inspected and tested (as necessary) by a Professional Engineer. Repairs to the
liners shall be made as needed and prior to the resumption of use.
18. The permittee shall actively seek alternate disposal/re-use optionits implementation,
e fill roduced at the faidenh en
alternate means of disposal, along with,a proposed schedule for
within one (1) year of permit issuance and reported by letter to the )Division's Central Office at the Aquifer
Protection Section, 1636 Mail Service Center, Raleigh., NC 27699-1636 and to the Mooresville Regional
Office at the Aq fer Protection Section, 610 East Center Avenue/ Suite 310, IvImesville, NC 2811.5.
19. The City Water Supply Line shall be re -located to the upper perimeter of the residua] fill area within one (1)
year it permit issuance. Any problems with implementing this condition in: a timely fashion 1shall be
reported by letter to the Division's Central Office at the Aquifer Protection Section,
1636 Center, Raleigh, NC 27699-1636 and to the Mooresville Regional Office at the Aquifer Protection Section,
610 East Center Avenue/ Suite 301, Mooresville, NC 28115.
20. Any monitoring deemed necessary by the Division to insure surface and -ground water protection will be
hedule shall be followed.
established and an acceptable sampling reportizig sc
the
to insure Proper
21. Adequate inspection, maintenance, and cleaning shall has beeneeoristructed around the residual fill area shall be
Operation of the subject facilities. The berm which
maintained so as to keep the fill and/or accumulated rainwater frorn leaving the fill area.

NCDENR MRO Fax:[phone] Mar 23 2005 13:57 P.06
22, The Permitter, or his designee shall inspect the wastewater recycle facilities to prevent malfunctions and,
deterioration, operator, errors and discharges which may cause or lead to the release of wastes to the
environment, a threat to human health, or a nuisance. The Permittee shall maintain an inspection log or
summary including at least the date and time of inspection, observations made, and any maintenance,
repairs, or corrective actions taken by the Permittee. This log of inspections shall be maintained by the
Permitter, for a period of three years from the date of the inspection and shall be made available to the'
Division or other permitting authority, upon request.
23. Any duly authorized officer, employee, or representative of, .the Division may, upon presentation of
credentials, enter and inspect any property, premises or place on or related to the recycle system at any
reasonable time for the purpose of determining compliance with this permit, may inspect or copy any
records that must be maintained under the terms and conditions of this permit, and may obtain samples of
groundwater, surface water, or leachate.
2.4_ The arurual administering and compliance fee must be paid by the Permittee within thirty (30) days after
being billed by the Division. -Failure to pay the fee accordingly may cause the )Division to initiate action to
revoke this permit as specified by 15A NCAC 2H .0205. (c)(4).
-25. Failure to abide by the conditions and littiitat:ons contained in this permit may subject the Permittee to an
enforcement action by the Division in accordance with North Carolina General Statute 143-215.6A to 143-
215.6C.
26. The issuance of this permit does not exempt the Permittee from complying with any and all statutes, rules,
regulations, or -ordinances which may be imposed by other government agencies (local, state,. and federal)
which have jurisdiction, including but not limited to applicable river buffer rules in 15A NCAC 2B.0200,'
erosion and sedimentation control requirements in 15A NCAC Chapter. 4 'and under the Division's General
Permit NCGQ10000, and any requirements pertaining to wetlands under 15A NCAC 2B .0200 and 2H
.0500.20.
27. A set of approved plans and specifications for the subject project must be retained by the Permittee for the
life of this project.
28. NoncowplzaaceNotifcation:
The Perinittee shall report by telephone to the Mooresville Regional Office, telephone number (704) 663-
1699, as soon as possible, but in no case more than 24 hours or on the next working day following the
occurrence or first knowledge of the occurrence of any of the following:
a. •An y occurrence at the wastewater treatment facility which results in the treatment of significant
amounts of wastes which are abnormal in quantity or characteristic, such as the durnpis►g of the contents
of a basin or tank, the known passage of a slug of hazardous substance through the facility, or any other
unusual circumstances;
b. Any process unit failure, due to known or unlaaown reasons, that renders the facility incapable of
adequate wastewater treatment, such as mechanical 'or electrical failures of pumps, aerators,
compressors, etc_;
c, Any failure of a pumping station, sewer line, or treatment facility resulting in a by-pass directly to
receiving waters without treatment of all or any portion of the izt.fluent to such station or facility; or
d. Any time that self -monitoring information indicates that the facility is not in compliance with its permit
limitations.

NCDENR MRO Fax:[phone] Mar 23 2005 13:58 P.07
Occurrences outside normal business hours'may also be reported to the Division's Emergency Managenleat
personnel at telephone number [phone], or [phone]. Persons reporting such occurrences by
telephone shall also file a written report in letter form within, five (5) days following first knowledge of the
occurrence. This report must outline the actions taken or proposed to be taken to ensure that the problem
does not recur.
29.. Upon classification of the wastewater treatment and spray irrigation facilities by the Water Pollution
Control System Operators Certification Commission (WPCSOCC), the Permittee shall designate and
employ a certified operator to be in responsible charge (ORC) and one or more certified operator(s) to be
back-up ORC(s) of the facilities in accordance with 15A NCA.0 SG .0201. The ORC shall visit the
facilities in accordance with 15A NCAC 8G .0204 or as specified in this permit and shall comply with all
other conditions specified in these rules.
30. The recycle lagoons shall not be located within 100 feet of water supply wells.
31. Within sixty (60) days of permit issuance, the pennittee shall submit two original copies of a scaled site
map (scale no greater than 1 "=100'); however, special provisions may be granted upon prior approval for
large properties. The map(s) must include the following information.
a. The location and identity.of each monitoring well.
b. The location of major components of The waste disposal system.
e. The location of property bouixdaries within 500 feet of the disposal area(s).
d. The latitude and longitude of the established horizontal control monument. o relative
e. The elevation. of the top of the well casing (which shall be known as the "measuring point" )
to a common datum.
f. The depth of water below the measuring point at the time the measuring point is established.
g. The location of Review and Compliance Boundaries.
b._ The date the map is prepared and/or revised_
32. Control monuments shall be installed in such a manner and made of such materials that the monument will
not be destroyed due to activities that may lake' place on the property. Maps and any supporting
documentation shall be sent to the Aquifer Protection Seeti.on's Central Office at 1636 Mail Service Center,
1ZaJeigh, NC 27699-1636, and to the l�looresville Regional Office at the Aquifer Protection Section, 610
East Center Avenue/ Suite 301, Mooresville, NC 28115.
The pertnittee is responsible for ilte geographic accuracy of any map submitted, however produced
33, Monitor wells 1Iff-1,
IvZW 2, My,7.3, and thestream behind -the property shall all be sampled every
February, June and October for the following parameters:
Total Dissolved Solids pH
Sulfates (SOd) Specific Conduetivit-y
A1LTminum Total Suspended Solids
Water Level
The measurement of water levels must be made prior to sampling for the remaining parameters. The depth
to water in each well shall be measured from the surveyed point on the top of the casing.
The results of the sampling and analysis shall be, received on the most -recent version of "Groundwater
Quality Monitoring: Compliance Report Form" (i.e., GW-59 Form) with copies of the laboratory analyv-s
attached by the Division's Aquifer Protection Section at the following address on or before the last working
day of the month following the sampling month:
4

NCDENR MRO Fax:[phone] Mar 23 2005 13:58 P.08
NCDENR-DWQ
Information processing Unit
1617 Mail Service Center
Raleigh, NC 27699-1617
Updated blank reporting forms may be downloaded from the web site for the Division's Aquifer Protection
Section at http://my.ehnr.st tte.nc.us/ or requested from the address listed above.
34. The COMPLIANCE BOUNDARY for the disposal systenz is specified by regulations in 15A NCAC 21L,
Groundwater Classifications and Standards. The Compliance Boundary for the disposal system individually
permitted on or after Dece-rxzber 30, 1983 is established at either 250 feet from the waste disposal area, or 50
feet within the property boundary, whichever is closest to the waste disposal area. An exceedance of
Groundwater Quality Standards at or beyond the Compliance Boundary is subject to remediation action•
according to 15ANCAC 2L .0106(d)(2).
35. The BEV1EW BOUNDARY is established around the disposal systenft midway between the Compliance
Boundary and the perimeter of the waste disposal area. Any exceedance of standards at the. Review
Boundary shall require action in accordance with 15.A, NCAC 2L .0106(d)(1).
36. Any additional groundwater quality monitoring, as deemed necessary by the Division, shall be provided.
37. Permittee, at least six (6) months prior to the expiration of this permit, shall request its extension. Upon
receipt of the request, the Commission will review the adequacy of the facilities described therein, and if
warranted, will extend the permit for such period of time and under.such conditions and limitations as it
may deem appropriate.
Permit issued this the 22nd day of December, 2004
NORTH ;OLL,TA ENVIRONMENTAL MANAGEMENT COMMISSION
Alan W. YEmelc, P.E., Director
Division of Water Quality
By Authority of the Environmental Management Commission
Permit Number W000027021

NCDENR NRO
-CA— r0 13 Qffi
Red ■ NC 2,93T18naa
Tel. 91. -843-� -Fes 9=0-843.5789
[e-mail]
Fax:[phone] Mar 21 2005 16:18 P.01
ALC]AE INCS a
8135 Rea a7d
,ockwe[L NC 28*8
Tel 704-pdryr,alchem($cb him
February ia, 20o5
Mr. Alan W. Rlirnek, P.E
Director
Aquifer protection Section
DSION OF WkTF-R QUALM
12 North Salmi urY Street
9th.'Floor
Raleigh, NC 27604
Dear Mr. Mimek:
e received our ge�znit No.: WQ0002702. your letter is dated December �U'e would like $o
> 18, 2005-
2004. We did not receive the permit until exam �e and respond to all of the
ask for an extension of time of go that we will need
changes. We feel that because of all of the extensive changes
this extra time. Thank you fvr your ]Help•
Best regards, r
AI.CHEM, IKC-
Wayne Due,
plant Manager
Vil
Mr. John- Reuscher to
cc: tic Services
. Mid Atlas.
Zk
R.0
A� �, �J m#ZC-13
51 8370 jfal�lily� �•

Fax:[phone] Mar 23 2005 13:59 P.10
NCDENR MRO
' ALC Zff UM , I�V'C.
Coryorate Office Sales and Manufacturing
2042 Buie Philadelphus Road 8135 Red Rbad
Red Springs, NC 29377 Roekwell, NC 28138
Tel. [phone] — Fax 910-W-5789 Tel. 70�279-7908 — Fax [phone]
[e-mail] [e-mail]
19. What is the point of moving a city Water line? This is process water only. AIso, the city
water line has been cut off from the facility and turned off.
29. We do not have a wastewater treatment an spray iriigation facility. Therefore, we feel
there is no need for this provision_
31. We are not familiar with this item and do not understand why we should be -required to
do all of this.
I feel that this permit if enacted would put our company out of business. It is economically
detrimental to us and our employees. I would like to point out that in your letter you stated that a
Nov was issued against our facility in January 7, 2001 for violations of State Groundwater
Quality Standards. I had to hire a consultant and spend $ 4,000.00 to prove that the person
issuing this Nov was wrong. After proving that it Was wrong I expected to receive a letter of
apology. I.also thought that your office might offer to as
our company for our money and
time spent on this matter. Instead, I received a letter saying that if we were every caught doing
Something wrong we would be severally penalized.
The Nov in May 12, 2003 uras caused by unusually large amounts of rain that just over whelmed
us. We have put up a beano that should keep this from every happening again. I look forward to
meeting with you.
Best regards,
ALCIMM, INC.
Randall Andrews,
Sales Manager
vll

NCDENR MRO Fax:[phone]
Mar 23 2005 13:59
P. 09
ALCHEMY INC.Corporate Ofl4ce
2042 Buie Philadelphus Road
Red SPrings, NC 28377 Sales and Man" acturin
TaL 910-843-2221 — Fax [phone] Red Road
►[e-mail] To. 70¢279-7908 R F ell' NC 28138
ax 704 279-8418
pdrye.alchern cbiinetnet
March 8, 2005
I&- Alan W. Klimek, P.E.
Director
AquiferPrOteCAon Section
DIVIM>:ON OF WATER QUA,LITy
512 North Salisbury Street
9a', Floor
Raleigh, NC 27604
Subject: Permit#: WQ0002702
Dear Mr. Klimek
NC DEP. .'GF El�vihuNMENT
ANp NATURAL RESOURCE$
RECEIVED
MAR 2 3 2005
MOORESVILLE REGIONAL OFFICE
MG -GROUNDWATER SECTION
We have had a chance to review the proposed perm t, We have que;tiow and objections to the
following parts.
We object to the necessity of extensive data generation for the water sampling in the stream. We
request that this water sampling be done yearly. We plan to block any water from leaving the
sandy area and use this water in our process.
NO. I I — We have no idea what these gauges are and we can visually look at the levels. We see
no real reason to install them. Our standard operating procedures provide for us to leave plenty of
operating room in the storage basuns.
Additionally, we do not have any waste on our property. All material is beneficially used.
13. This is extremely difficult and the would propose to use a ph of 2 as a bancbmar .
jf we
add Lima or any other Alkali to the system We cannot use the Aluminum value to put
back into the process. Our rainwater is ph 5.0 or less.
14. Which fill area?
15• We wish to continue using the sand as Alchem, Inc. intends to build on the level land that
has been generated. Alchem, Inc. is using this sand for a beneficial use. There is no
waste. We plan to build a production facility oil this built up area.
16. How can one take the ph of a solid?
17. Alchem, Inc. standard operating procedure when removing sand from the Lagoons is to
stay two feet away from the walls and bottom Therefore, there is no breech and no way
to examine the liner. It was originally inspected and certified by a professional engineer.
There is no reason to think any change has occurred.
l S. Alchea)., hie_ is not disposing of anything. Alchem, 111c. is using the sand and using the
Xainwater from the bean area.
Olt

August 19, 2003 —A NOV W
( Q0016338) was issued for failure to incorporate remedial actions/illegal
discharge to surface water.
Illegal
Feb. 24, 2004 — ALCHEM submits the annual report for W 00
2003, we did not accumulate enough silica residual land apply,,..
16338. ALCHEM reports "for the year
July 29, 2004 = ALCHEM on payment plan with AGO for the Ma
y 12, 2003 NOV, per Janet Leach.
Aug. 13, 2004 — A letter from DEHNR to ALCHEM, regarding withdrawal of
package for WQ0016338. permit application
Sept. 29, 2004 - MRO receives a request to renew WQ0002702.
Sept. 20, 2004 - MRO receives a request to renew WQ0016338.
Oct. 25, 2004 - A staff report by Ellen Huffman, MRO, for both ermit.renewals, reques
o n
past confusion between the two Permits that the . p ts that due to
compliance issues in the past. There were also many other c
y be combined for better monitoring of a site with many
hanges requested.
December 28, 2004 —A renewal permit for WQ0002702 (recycle) is issued
requested by MRO, but the other permit (WQ0016338, residuals is not issued.
with the many changes (as in Central Offices until the confusion is cleared up: ) sued. It is currently being held
Dec. 30, 2004 & Jan.5, 2005 — follow-ttp investigation b Wes B
issues with low pH continuing to impact the stream. y ell, MRO, revealed stormwater run-off
Jan. 12, 2005
Jan —NO
V
2004 and Jan. /NRE issued due to continued blems fo 5, 2005. proand during the investigation on Dec. 30,
Jan. 27, 2005 - A letter from ALCHEM to Rex Gleasonj MR
Still states that their pH readings are not as low as the readin s that
O, regarding further cleanup of stream.
g Wes Bell had gotten.
Feb. 9, 2005 - A letter from ALCHEM to Rex Gleason, MRO re
areas, hiring a tree expert, and repairing silt fences. regarding soils sampling, liming affected
Feb. 10, 2005 A letter from ALCHEM to Div. Of W permit WQ0002702. The permit was dated Dec. 28, 2004 but ALC
Q, Central Office, regarding the receipt of the new
until Jan. 28, 2005. This letter asks for an extension of 90 days to review the says that they did not receive it
knowledge, this letter has not been responded to by Central Office, permit. To the writer's
March 8, 2005 — A letter from ALCHEM to Div. Of W
the permit conditions of WQ0002702. To the writer's knowledge, al Office, regarding many objections to
by Central Office, ge, this letter has not been responded to
6

March 10, 2005 — A letter from ALCHEM to Non-Dis. Compliance conveys the annual report for
WQ0016338. This letter states that they did not accumulate enough silica residual to land apply, just like
the 2003 annual report. The writer recalls that ALCHEM stated that they plan to clean out a lagoon (or
two) in the spring which is why the staff report asked for extra pH testing on excavated materials and an
inspection of the lagoon liner.

O� WATF9 Michael F. Easley, Governor
Q William G. RossJr., Secretary
yNC DEP1t1(jient of Environment and Natural Resources
>_ AND NA�URAL RESOURCES
—{ Alan W. Klimek, P.E., Director
����VEL/ 0 C V D Division of Water Quality
MEMORANDUM
DATE: MAY 13, 2005 MOORESVILLE REGIONAL OFFICE
DWO-GROUNDWATER SECTION
TO: JANET LEACH, ATTORNEY GENERAL'S OFFICE - ENVIRONMENTAL DIVISION/WATER & LAND SECTION
FROM: SHANNON MOHR THORNBURG, AQUIFER PROTECTION SECTION - LAND APPLICATION UNIT
SUBJECT: INFORMATION REQUESTED FOR 05 EHR 0718 (REQUEST FOR ADJUDICATORY HEARING FOR
PERMIT NO.WQ0002702 ISSUED TO ALCHEM, INC.)
We are in receipt of your e-mail sent to Mr. Ted Bush and Mr. Ed Hardee on 05/12/2005
regarding the above -referenced permit. Per your request, we are attaching the following documents to
this memorandum (i.e., in order of attachment):
♦ Permit application form, including cover letter, from Alchem, Inc.; requesting renewal of
Permit- No. WQ0002702 for its wastewater recycle facility. Dated 09/21/2004 and received
09/24/2004.
♦ Letter from the Division, acknowledging receipt of the permit renewal application package
and notifying Alchem, Inc. that the,review had been assigned to Mr. David Goodrich. Dated
09/28/2004.
♦ Staff report from the Mooresville Regional Office, transmitting recommendations regarding
permit issuance. Dated 10/25/2004 and received 11/01/2004.
♦ Permit from the Division, renewing operation of wastewater recycle facility for another
permit cycle. Dated 12/28/2004. The renewed permit was not sent certified mail/return
receipt requested (i.e., not standard operating procedure).
♦ Letter from Alchem, Inc., requesting an extension of 90 days to review the permit and
respond to changes. Dated 02/10/2005 and received 02/17/2005. This letter documents that
Alchem, Inc. received the permit on 01/18/2005.
♦ Letter from Alchem, Inc., raising several "questions and objections" to the "proposed
permit." Dated 03/08/2005 and received 03/24/2005.
♦ Letter from the Division, stating that the permit was not "proposed" and providing notice of
regulatory requirements. Dated 04/22/2005 and received by Alchem, Inc. on 04/25/2005 and
04/26/2005 at its corporate headquarters and the Rockwell, NC facility, respectively. After
its receipt by Alchem, Inc., a meeting was held between the Division and Alchem, Inc. on
05/11/2005 to discuss this letter and clarify the permit requirements further.
♦ A packet of information related to the history of this permit as well as its sister permit, Permit
No. WQ0016338. The first document in this packet is an excellent summary of the
Division's history with the Alchem, Inc. facility that was prepared by Ms. Ellen Huffman.
Also included are several documents regarding recent compliance and enforcement activities
since 2001.
o1,'
North Carolina
,Xatiarally
Aquifer Protection Section 1636 Mail Service Center Raleigh, NC 27699-1636 Phone [phone] Customer Service
Internet: http://h2o.enr.state.nC.us 2728 Capital Boulevard Raleigh, NC 27604 Fax [phone]
Fax [phone]
An Equal Opportunity/Affirmative Action Employer - 50% Recycled/10% Post Consumer Paper

P
Potential witnesses for this: heahhg'.iriclude 'the following Division of Water Quality staff
members:
♦ David Goodrich, Hydrogeologist II.; < _.
NCDENR-DWQ
Aquifer Protection Section
Land Application Uriii" '
1636 Mail Service Center -
Raleigh, NC 27699-1636
[phone]
[phone] Fax
david.,goodrich(,ncmail.net
David was the Central Office reviewer assigned to review and process the permit renewal
application package. He also drafted the permit and made the recommendation for approval.
♦ Ellen Huffman, Environmental Specialist II
NCDENR-DWQ
Mooresville Regional Office
Aquifer Protection Section
610 East Center Avenue
Mooresville, NC 28115
[phone]
[phone] Fax
[e-mail],
Ellen was the Mooresville Regional Office reviewer assigned to review the permit renewal
application package. As part of her review, she made a visit of the facility and drafted a
report that detailed her recommendations regarding permit issuance that was sent to the
Central Office.
♦ Andrew Pitner, Environmental Regional Supervisor I
NCDENR-DWQ
Mooresville Regional Office
Aquifer Protection Section
610 East Center Avenue
Mooresville, NC 28115
[phone]
[phone] Fax
andrew.pitner c ,ncmail.net
Andrew is Ellen's direct supervisor. He reviewed Ellen's report and approved it to be sent to
the Central Office
♦ Kim Colson, Environmental Engineering Supervisor
NCDENR-DWQ
Aquifer Protection Section
Land Application Unit
1636 Mail Service Center
Raleigh, NC 27699-1636
[phone]
[phone] Fax
kim.colson@,ncmail.net
Kim is David's direct supervisor. He reviewed the draft permit and supporting pen -nit
renewal application package and signed it on the Director's behalf, per his signatory
delegation authority.
0)

Note that if Stormie would like to raise issues regarding the historic compliance/enforcement
record of the overall facility, we may have to amend the potential witness list with additional people.
Since I am helping with various issues relating to this facility, I would like to be kept informed as to all
progress on this case in addition to the potential witnesses.
Please do not hesitate to contact me at [phone] or via e-mail at
[e-mail] at any time, if I may provide additional information or answer questions
regarding this memorandum.
Enclosures
cc: Ms. Ellen Huffman, Mooresville Regional Office - Aquifer Protection Section
Ms. I?'eggy �u ey,1V1o4:-cs,wili}erRegionahO�fficer Anuifer�PiotectionrSectio 7
Mr. Andrew Pitner, Mooresville Regional Office - Aquifer Protection Section
Mr. David Goodrich, Aquifer Protection Section - Land Application Unit
Mr. Kim Colson, Aquifer Protection Section - Land Application Unit
APS Central Files (WQ0002702)

J.
a ALCHEM, INC.
Corporate Office Sales and Manufacturing
2042 Buie Philadelphus Road 8135 Red Road
Red Springs, NC 28377 Rockwell, NC 28138
Tel. [phone] --- Fax [phone] Tel. [phone] — Fax [phone]
[e-mail]
[e-mail]
March 8, 2005
Mr. Alan W. Klimek, P.E.
Director
Aquifer Protection Section
DIVISION OF WATER QUALITY
512 North Salisbury Street
9t' Floor
Raleigh, NC 27604
Subject: Permit#: WQ0002702
Dear Mr. Klimek
NC DEP1 OF ENVINUIVIVIENT
AND NATURAL RESOURCES
RECEIVED
MAIR 2 3 2005
MOORESVILLE REGIONAL OFFICE
DING -GROUNDWATER SECTION
We have had a chance to review the proposed permit. We have questions and objections to the
following parts.
We object to the necessity of extensive data generation for the water sampling in the stream. We
request that this water sampling be done yearly. We plan to block any water from leaving the
sandy area and use this water in our process.
No. 11 — We have no idea what these gauges are and we can visually look at the levels. We see
no real reason to install them. Our standard operating procedures provide for us to leave plenty of
c/Woperating room in the storage basins.
Additionally,
o ally, we do not have any waste on our property. All material is beneficially used.
�r 13. This is extremely difficult and we would propose to use a ph of 2 as a benchmark. If we
add Lime or any other Alkali to the system we cannot use the Aluminum value to put
back into the process. Our rainwater is ph 5.0 or less.
14. Which fill area? — �' j �e }t/-P �
15. We wish to continue using the sand as Alchem, Inc. intends to build on the level land that
has been generated. Alchem, Inc, is using this sand for a beneficial use. There is no
waste. We plan to build a production facility on this built up area.
16. How can one take the ph of a solid?Qr,n�
(�.c'cs/ YX�Arejm"ovin'g
��cYeAll17. Alchem, Inc. standard operating procedure sd"nd from the Lag ons is to
stay two feet away from the walls and bottom. Therefore, there is no breech and no way
to examine the liner. It was originally inspected and certified by a professional engineer.
There is no reason to think any change has occurred. lvU v� � ✓
18. Alchem, Inc. is not disposing of anything. Alchem, Inc. is using the sand and using the
rainwater from the berm area.
r�' � 1JQ 001 C-33�

ALCHEM, INC.
Corndrate Office Sales and Manufacturinq
2042 Buie Philadelphus Road 8135 Red Road
Red Springs, NC 28377 Rockwell, NC 28138
Tel. [phone] -- Fax [phone] Tel. [phone] — Fax [phone]
[e-mail]
[e-mail]
19. What is the point of moving a city water line? This is process water only. Also, the cit
water line ,has been cut off from /the facility and turned off.
.�!/l�i���- l� �r� ✓lLa.a v—�y ✓v�-{-w�� vil/i�''�`�/-��.-�� Gec����-G!/'
29. We do not have a wastewater treatment aspray eirrigation facility. Therefore, we feel
there is no need for this provision.
31. We are not familiar with this item and don unde stand why we should be -required to
do all of this. /
I feel that this permit if enacted would put our .company out of business. It is economically
detrimental to us and our employees. I would like to point out that in your letter you stated that a
Nov was issued against our facility in January 7, 2001 for violations of State Groundwater
Quality Standards. I had to hire a consultant and spend $ 4,000.00 to prove that the person
issuing this Nov was wrong. After proving that it was wrong I expected to receive a letter of
apology. I also thought that your office might offer to reimburse our company for our money and
time spent on this matter. Instead, I received a letter saying that if we were every caught doing
something wrong we would be severally penalized.
The Nov in May 12, 2003 was caused by unusually large amounts of rain that just'over whelmed
us. We have put up a beam that should keep this from every happening again. I look forward to
meeting with you.
Best regards,
ALCHEM, INC.
Randall Andrews,
Sales Manager
vll

it
P
5
N

NCDENR MRO
Fax:[phone] Mar 23 2005 13:59 P.09
ALCHEM, INC.
Corporate Office Sales and (Manufacturing
2042 Buie Philadelphus Road 8135 Red Road
Red Springs, NC 28377 Rockwell, NC 28138
TaL 910-843,2121 — Fax [phone] Tel. [phone] — Fax [phone]
rra@S2=.n4t pdrye.alchemQcbiinMrnetnet
March 8, 2005
Mr. Alan W. Klimek, P.E.
Director
Aquifer Protection Section
DIMION OF WATER QUALITY
512 North Salisbury Street
9`h. Floor
Raleigh, NC 27604
Subject: Permit#: WQ0002702
Dear Mr. Klimek
NC DEPI. or ENVIkulliMEN7
AND NATURAL RESOURCES
RECEIVED
MAR 2 3 2005
MOORESVILLE REGIONAL OFFICE
DWO-GROUNDWATER SECTION
We have had a chance to review the proposed permit. We have questions and objections to the
following parts.
We object to the necessity of extensive data generation for the water sampling in the stream. 'Vie
request that this water sarripling be done yearly. We plan to block any water from leaving the
sandy area and use this water in our process.
No. I — We have no idea what these gauges are and we can visually look at the levels. We see
no real reason to install them. Our standard operating procedures provide for us to leave plenty of
operating room in the storage basins.
Additionally, we do not have any -vvaste on our property. All material is beneficially used.
3. This is extremely difficult and we would propose to use a ph of 2 as a benchmark. If we
add Lime or any other Alkali to the system we cannot use the Aluzxtimini value to put
back into the process. Our rainwater is ph 5.0 or less.
14, Which fall area?
✓,15. We wish to continue using the sand as Alchem, Inc. intends to build on the level land that
has been generated. Alchem, Inc. is using this sand for a beneficial use. There is no
waste. We plan to build a production facility oxt this built up area.
16. Now can one take the ph of a solid?
L 17, Alchem, Inc. standard operating procedure wheza removing sand from the Lagoons is to
stay two feet away from the walls and bottom. Therefore, there is no breech and no way
to examine the liner, it was originally inspected and certified by a professional engineer.
There is no reason to think any change has occurred.
V. 18_ Alcbelxt, lac. is not disposing of anything. Alchem, ltic. is using the sand and using the
rainwater from the berm area.
U^ -

NCDENR MRO Fax:[phone] Mar 23 2005 13:59 P.10
` ALC"r,-M, INC.
Cor2orate Office Sales and ManufaCturimr
2042 Buie philadelphus Road 8135 Red Rbad
Red Springs, NC 28377 Rockwell, NC 28138
Tel. [phone] — Fax 910-W-5789 Tel. [phone] — Fax [phone]
[e-mail] ' [e-mail]
I9. What is the point of moving a city water line? This is process water only. Also, the city
water line has been cut off aorn the facility and turned off.
�9. We do not have a wastewater treatment and spray ixxigation facility. Therefore, we feel
there is no need for this provision.
31. We are not familiar with this item and do not understand why we should be -required to
do all of this.
I feel that this permit if enacted would put our company out of business. It is economically
detrimental to us and our employees. I would like to point out that in your letter you stated that a
Nov was issued against our facility in January 7, 2001 for violations of State Groundwater
Quality Standards. I had to hire a consultant and spend $ 4,000.00 to prove that the person
issuing this Nov was wrong. After proving that it was wrong I expected to receive a letter of
apology. I.also thought that your office might offer to as
our company for our money and
time spent on this matter. Instead, I received a letter saying that if we were every caught doing
something wrong we would be severally penalized.
The Nov in May 12, 2003 was caused by tmusually large amounts of rain that just'over whelmed
us. We have put up a beam that should keep this from every happening again. I look forwaxd to
meeting with you.
Best regards,
AT_,CI-MM, INC.
Randall Andrews,
Sales Mau,ager
vll

NCDENR MRO
CA- rnarate Office
armBye-rhluaip3� d
Tel.916- gs,45 2= r Fes gio-843-E9
Tel. g1o�4s-
[e-mail]
Fax:[phone] Mar 21 2005 16:18 P.01
ALCIIEM9
•er
�" Boad
Rockwea,
NC 28*8
Tel. yo4-per akhem(Pcbi '7 x
February 10, 2005
Mr. Alan W. I<Iirnek, i'.E
Director
Aquifer protection Section.
DlAgSION Op WAT et ` LM
512 North Sal' burY $R
9t1%. Floor
Raleigh, NC 27604
Dear Mr- Klimek:
received our geiznit NO.: WQ0002702. your letter is dated Dw uld like to
We 2005.
2004. Are did not receive the permit n 4 era �8and rspond to all of the
ask for an exLensiou a£ time of 90 YS that we will need
changes. We feel that because of all of the extensive Chang
this extra time,
Thank You fvr your help.
Pest regards,
,kLCHEM•, INC.
XI
Wayne Due,
'Plant. Manager
vll
Mr, John Reuscher `•
cc: tic Services
Mid AtlaD•j �. •: �'�'
xrA. f+k��
�p%l )M#ZC-13
f���Al .

NCDENR MRO
Fax:[phone] Mar 23 2005 13:56 P.01
CDENR
North Carolina D;elpa tment o Env ronment and Natural R.sources
1"Aidhael F. Easley, Governor
From:
'FAX COVER SHEET
Division:yy
Section:
Date: �>/_--2—
To:
Number of pages (mcl,uding cover). 6
Subject:
610 East Center Avenue, Suite 301, Mooresville, North Carolina 28115
Phone: [phone] \ FAX: [phone] \ Internet: w+ww.enr.state.nc.us
Y hiiiarn G. Ross Jr., Sacre`aiY
One
NorthCaxo na
�at�t��llr�
An Equal Opportunity! Affirmative Action Emplayer-50 Rsc/dad i 10 1 Post Consunl2f,Paper „

NCDENR MRO Fax:[phone] Mar 23 2005 13:56 P.02
odor w A rFRQG
Q. "C
! Micbael F. Easley, Governor
William G. Ross Jr., Secretary
North Carolina Department of Environment and Natural Reso=es
Alan W. Klimek, P.E., Director
Division of Water Quality
NC DEPT. OF ENVIRO,NMEN7
December 28, 2004 AND NARK EMBED RCE
Mr. Randall Andrews ,BAN 4 2005
Alchem, Inc.
FFICE
8135 Red Road MOORESV1LtE REGIER S �T04
Rockwell, NC 28138 DWO-GROUNDWATE
Subj eet;. Permit No. WQ0002702
:�".•�Alcb;t:zx1,, bncorporatEd.
' '• , �Industria112zcycle-Bauxite Process
Rowan County
Dear Mr_ Andrews:
In accordance with your request for renewal received September 23, 2004, we are forwarding herewith
Permit No. WQ0002702, dated December 28, 2004, to Alchem, Zne..for the continued operation of the three (3)
lagoon recycle system.
This permit shall be effective from the date of issuance until November 30, 2009, shall void Permit No.
WQ0002702 issued January 21, 1999, and shall be subject to the conditions and limitations as. specified therein.
Please pay particular attention to the %monitoring requirements in this permit. Groundwater sampling is now
required in monitor wells MW-1, MtiV-2, and MW-3 and surface water sampling will be performed on the stream
behind the property every February, rune, and October for Total Dissolved Solids, pFT, Sulfates, Specific
Conductivity, Aluminum, Total Suspended Solids, and water level. A scaled map of the facility must be prepared
and submitted to the Division. The recycled water will be required to have a pH of -lot less than 6.0 as it leaves
the wash area- and goes into the storage lagoon, A site life estimate and a long range plan for future residuals
disposal are also required. The material removed flrom Lagoons 1 & 2 dung the next lagoon cleanout is required
to ; have pH readings taken and documented, and the liners of each lagoon are to be inspected and tested (as
necessary) by a Professional Engineer. Repairs are to be made as. needed. The pernittee is required to seek
alternate disposal/re-use options for the' fill and submit a proposed schedule for their implementation. The City
Water Supply Line is required to be re -located to the upper perimeter of, the residual Fill area. Failure to establish
an, adequate system for collecting and maintaining the required operational information will result in future
compliance problems, The berm which has been constructed around the residual fill area is to be maintained so as
to keep the fill and/or accumulated rainwater from leaving the fill area.
This permit is being renewed by itself and is not being combined with Permit No. WQ0016338 at this
time, as the application for the renewal of Permit No. WQ001633 8 has )clot yet been received by the Division.
No` Cato-
EllCQI,
Aquifer Protection Section 1636 Mail Service Center Raleigh, NC 27699-1636 Phone [phone]) Customer Semis
Internet: b2o.enr.state,ne.us 2728 Capital Boulevard Raleigh, NC 27604 FAX [phone]
An Equal Opportunity/Aframalive Action Employer— 50% Recycled/1096 Post Co6sumar Paper

Y NCDENR MRO Fax:[phone] Mar 23 2005 13:56 P.03
A Notice of Violation was issued against the facility under Permit No. WQ0002702 on January 7, 2001
for violations of State Groundwater Quality Standards as evidenced by the laboratory analyses of groundwater
samples taken during the course of rmoritorbag on -site monitor wells.
A Notice of Violation was also issued against the facility under permit No. WQ0002702 on May 12, 2003
in response to a release of residuals into a drainage/wooded area and an intermittent stream. The permittee was
cited for failing, to properly operate and maintain the facility as a non -discharge ;facility, failure to cease reuse
operation once nuisance conditions existed, failure to provide adequate provisions to prevent surface runoff from
conveying. gollutaxats into surface waters, and failure to notify the Division of the residuals release into the
receiving stream.
If any parts, requirements, or limitations contained in this permit are unacceptable, you have the right to
request an adjudicatory (tearing upon written request within thirty (30) days following receipt of this permit.- This
request must be in the form of a written petition, conforming to Chapter 150B of North Carolina General Statutes,
and . filed with the Office of Adrninistrative Hearings, 6714 Mail Service Center, Raleigh, NC 27699-6714.
Unless. sueb demands are made this permit.shall be final and binding.
If you need additional information concerning this matter, please contact David Goodrich at (919) 715-
6162.
Sincere
/Alan W. Klimek, P.E.
cc: Rowan County Health Department
,gq§telvile'ROgional Office, Aquiif6r Proteciion.Section
Technical Assistance and Certification. Unit
Aquifer Protection Central Files'
Permit Files
2

NCDENR MRO Fax:[phone] Mar 23 2005 13:57 P.04
NORTH CARO1LJNA
E'N-M0N1b1ENTAL'MANA.GE1vfENT COXWSSION
DEPA.RTNfENT OF ENVTRONytENT AND NATURAL RESOURCES
RALEIGR
RECYCLE SYSTEM PERMIT
In accordance with the provisions of Article 21 of. Chapter 143, General Statutes of North Carolina as amended,
and other applicable Laws, Rules, and Regulations
PERMISSION IS HEREBY GRANTED TO
Alchem, Incorporated
Rowans County
FOR THE
continued operation of a wastewater recycle system consisting of 3 settling lagoons to serve Alchem, Inc., with no
discharge of wastes to the surface waters, -pursuant to the application received September 23, 2004, and in
corafonnity with the project plan, specifications, and other supporting data'subsequently filed and approved by the
Department of Environment and Natural Resources and considered a part of this permit.
This permit shall be effective from the date of issuance until November 30, 2009, shall void Permit No.
WQ0002702 issued January 21, 1999, and Shall be subject to the following specified conditions and limitations:
1. ' This permit shall become voidable unless the facilities are constructed in accordance with the conditions. of
this. permit, the approved plans and specifications, and other supporting data.
2. This permit is effective only with :respect to the nature and volume of wastes described in the application
and other supporting data.
3. The facilities shall be properly maixitained and operated at all times,
4. This pezzuit is not transferable. In the event there is a desire for the facilities to change ownership, or there
is a name change of the Permittee, a formal permit request must be submitted to the Division of Water
Quality (Division) accompanied by an application fee, documentation from the parties involved, and other
supporting materials as may be appropriate. The approval of the request will be considered on its merits
and may or may not be approved.
5_ In, the event that the facilities fail to perform satisfactorily; including the creation of nuisance conditions, the
Permittee. shall take immediate corrective action, including those actions that may be required by this
Division, such as the construction of additional or replacement treatment or disposal facilities.
6. The residuals generated from these treatment facilities must be disposed in accordance with General Statute
143-215.1 and in a manner approved by the Division,
7. The issuance of this permit shall not relieve the Permittee of the responsibility for damages to surface or
grouudwaters resulting from the operation of this facility.

i
NCDENR MRO
Fax:[phone] Mar 23 2005 13:57 PAS
10.
11.
12.
The facilities shall beureffectively lt ng froznl-ried.and operated tlle Operation of thisas a fac lltyn-discharge system to prevent the
discharge of any was
Diversion or bypassing of untreated wastewater from the treatment facilities is prohibited.
Freeboard in all of the lagoons shall not be less than two feet at any time. .
Waste -level gauges, to monitor waste levels in the settling lagoons, shall be installed within 60 days of
issuance of this permit. These gauges shall have readily visible permanent markings indicating the •
maximum, liquid level at the top of the temporary liquid storage volume, minimum liquid level at the
bottom of the temporary liquid storage volume, and top of the dam elevations. Caution must be taken not to
damage the integrity of the liner when installing the gauges.
A protective vegetative cover shall be established and maintained one run,�hosionasi control embankments
(outside toe of embankment to.maximum pumping elevation), beans, pipe
surface water diversions. Trees.,
Eartheand n basin embankment areas shall be vegetation sha.11 not kept mowed or otherwe atloweci to grow on ise
ther woody
earthen basin dikes or embankments.
controlled and accessible.
Within ninety (9o) days of perrlvt issuance, the recycled system shall be required to keep the recycled water
at a pH of not less than 6.0 Standard Units as it leaves the wash area and goes to the storage lagoon.
Within ninety (90) days of permit issuance, the perrnittee shall submit a site life estimate for the fill area. .
Within ninety (90) days of permit issuance, the perrcuittee shall submit a long-range plan for future residuals
disposal that shall include a timet-�ble for implementation.
. During the upcoming clean out of Lagoons 1 & 2 (scheduled
from he lagoon and plaeedpn the sand
ing
shall be taken and documented on everyload of xn la days d completion of the
fill- area. This information shall be conveyed to the Division within thirty (.) y .
clean out procedure. '
ring season of
At the conclusion of the clean out of Lagoonstested as necessary)
y a Profeor the ssional 1✓ng Weer?Rzpairs to the
liners of the lagoon shall b� inspected and tea ( any)
liners shall be made as needed and prior to the resumption of use.
at
q'he permittee shall actively seek alternate disposal/re-use options. for its impfill lementation, lementationashall be identified
eans of disposal, cility. M
along with' a proposed schedule fox- p
alternate m P
within one (1) year of permit issuance and reported by letter to the Division's Central Office at the Aquifer
protection Section, 1636 Mail Service Center, Raleigh, NC 27699-1636 and to the Mooresville Regional
Office at the Aquifer Protection Section, 610 East Center Avenue/ suite 310, Mooresville, N 28115.
S 1 Line shall be re -located to the upper perimeter of the residual fill area within one hall (be
19. The City Water upp y fashton s
year Of permit issuance. Any problems with implementing this condition In a timely
reported by letter to the Division's Ja Section, 1636 Mail Service
Centroffice at the Mooresville Regiouifer ProtectIO
nal office at the Aquifer protection Section,
Centex, Raleigh, INC 27699-1636 and to the
610 East Center Avenue/ Suite 301, Mooresville, NC 28115.
20. Any monitoring deemed necessary by the Division to insure surface and ground water protection will be
established and an acceptable sampling reporting schedule shall be followed.
ittce to insure VOPer
21. Adequate inspection, maintellazlce, and cleaning
has be neconstructedbaround he y the residual fill area shall be
operation of the subject facilities. The berm
Maintained so as to keep the fill and/or accumulated rainwater from leaving the fill area.
2

NCDENR MRO Fax:[phone] Mar 23 2005 13:57 P.06
22.' The Permittee or his designee shall inspect the wastewater recyclo facilities to prevent malfunctions and
deterioration, operator, errors and discharges which may cause or lead to the release of wastes to the
environMeat, a threat to human health, or a nuisance. The Permittee shall maintain an inspection log or
summary including at least the date and time of inspection, observations made, and any maintenance,
repairs, or corrective actions taken by the Permittee. This log of inspections shall be maintained by the
Pcrmittcc for a period of three years from the date of the inspection and shall be made available to the
Division or other permitting authority, upon request.
23. Any duly authorized officer, employee, or representative of .the Division may, upon presentation of
credentials, enter and inspect any property, premises or place on or related to the recycle system at any
reasonable time for the purpose of determining compliance with this permit, may inspect or copy any
records that must be maintained under the terms and conditions of this permit, and may obtain samples of
groundwater, surface water, or leachate.
24. The anaaual administering and compliance fee must be paid by the Perrnittce within thirty (30) days after
'being billed by the Division. -Failure to pay the fee accordingly may cause the Division to initiate action to
revoke this permit as specified by 15A NCAC 2H .0205. (c)(4). -
.25. Failure to abide by the conditions and lint itations contained in this permit may subject the Petmittee to an
enforcement action by the Division in accordance with North Carolina General Statute 143-215.6A to 143-
215.6C.
26. The issuance of this permit does not exempt the Permittee from complying with any and all statutes, rules,
regulations, or'ordinauces which may be imposed by other government agencies (local, state,. and federal)
which have jurisdiction, including but not limited to applicable river buffer rules in 15A NCAC 2B.0200,
erosion and sedimentation control requirements in 15A NCAC Chapter. 4 'and under the Division's General
Permit NCGQ 10000, and any requirements pertaining to wetlands under 15A NCAC 2B .0200 and 2H
.0500.20.
27. A set of approved plans and specifications for the subject project roust be retained by the Pernaittee for the
life of this project.
28. Noncompliance Notification:
The Perxni.ttee shall report by telephone to the lvlooresville Regional Office, telephone number (704) 663-
1699, as soon as possible, but in no case more than 24 hours or on the next working day following the
occurrence or first knowledge of the occurrence of any of the following:
a. Any occurrence at the wastewater treatment facility which results in the treatment of significant
amounts of wastes which are abnormal in quantity or characteristic, such as the dumpixig of the contents
of a basin or tank, the known passage of a slug of hazardous substance through the facility, or any other
unusual circumstances;
b_ Any process unit failure, due to known or unknown reasons, that renders the facility incapable of
adequate wastewater treatment, such as mechanical 'or electrical failures of pumps, aerators,
compressors, etc.;
c. Any failure of a pumping station, sewer line, or treatment facility resulting in a by-pass directly to
receiving waters without treatment of all or any portion of the influent to such station or facility; or
d. Any time that self -monitoring information indicates that the facility is not in compliance with'its permit
limitations.

NCDENR MRO Fax:[phone] Mar 23 2005 13:58 P.07
Occurrences outside normal business hours'may also be reported to the Division's Emergency Vfanagement
personnel at telephone number [phone], or [phone]. Persons reporting such occurrences by
telephone shall also file a written report in letter form within five (5) days following first knowledge of the
occurrence. This report must outline the actions taken or proposed to be taken to ensure that the problem
dons not recur.
29•. Upon classification of the wastewater treatment and spray irrigation facilities by the Water Pollution
Control System Operators Certification Commission (WPCSOCC), the Permittee shall designate and
employ a certified operator to be in responsible charge (ORC) and one or more certified operator(s) to be
back-up ORC(s) of the facilities in accordance with 15A NCA.0 8G .0201. The ORC shall visit the
facilities in accordance with 15A NCAC SG .0204 or as specified in this permit and shall comply with all
other conditions specified in these rules.
30. The recycle lagoons shall not be located within 100 feet of water supply wells.
31. Within sixty (60) days of permit issuance, the pe-rrnittee shall submit two original copies of a scaled site
map (scale no greater than 1 "=100'); however, special provisions may be granted upon prior approval for
large properties. The map(s) must include the following information:
a. The location and identity.of each monitoring well.
b_ The location of major components Of the waste disposal system.
e_ The location of property bourxdaries within 500 feet of the disposal area(s).
d. The latitude and longitude of the established horizontal control monument. relative
e. The elevation of the top of the well casing (Which shall be known as the "measuringo point")
to a common datum. .
f. The depth of water below the measuring point at the time the measuring point is established.
g, The location of Review and Compiiance Boundaries.
h_ The date the map is prepared and/or. re,,zsed_
32_ Control monuments shall be installed in such a manner and made of such materials that the monument will
not be destroyed due to activities that may take' place. on the property. Maps and any supporting
documentation. shall be sent to the Aquifer protection Section's Central Office at 1636 Mail Service Center,
Raleigh, NC 27699-1636, and to the lyfooresville Regional Office at the Aquifer Protection Section, 610
Fast Center Avenue/ Suite 301, Mooresville, NC 2811.5.
The permittee is respolisible for the geographic accuracy of any trap stcbmitted, however produced
NZW_2 Zv1yd.3� and the stream behind the property shall all be sampled every
33. Monitor wells .
ctober for the following parameters:
February, June and O
Total Dissolved Solids pH
Sulfates (SO.) Specific Conductivity
AluminumTotal Suspended Solids
Water Level
The measurement of water levels inust be made prior to sampling for the remaining parameters. The death
to water in each well shall be measured from the surveyed point on the top of the casing.
The results of the sampling and analy CiFos�all be. ereGe�i�v 9 �'o�) most -recent copies of the laboratoryanaly�,cs
dwater
Quality Monitoring: Compliance r pr or
attached by the Division's Aquifer Protection Section at the following address on or before the last worldng
day of the month following the sampling month:
4

NCDENR MRO Fax:[phone] Mar 23 2005 13:58 P.08 ,
NCDENR-)DWQ
Jhformation Processing Unit
1617 Mail Service Center
Raleigb, NC 27699-1617
Updated blank reporting forms may be downloaded ;from the web site for the Division's Aquifer Protection
Section at http://gw.ehnr.state.nc.us/ or requested from the address listed above.
34. The COMPLIANCE BOUNDARY for the disposal system is specified by regulations in 15A NCAC 2L,
Groundwater Classifications and Standards. The Compliance Boundary for the disposal system individually
permitted on or after December 30'. 1993 is established at either 250 feet from the waste disposal area, or 50
feet within the property boundary, whichever is closest to the waste disposal area. An exceedance of
Groundwater Quality Standards at or beyond the Compliance Boundary is subject to remediation action•
according to 15ANCAC 2L .0106(d)(2).
35. The RE'VMW BOUNDARY is established around the disposal system midway between the Compliance
Boundary and the perimeter of the waste disposal area. Any exceedance of standards at the. Review
Boundary shall require action in accordance with 15ANCAC 2L .0106(d)(1).
36. Any additional groundwater quality monitoring, as deemed necessary by the Division, shall be provided.
37. Permittee, at least six (6) months prior to the expiration of this permit, shall request its extension. Upon
receipt of the request, the Commission will review the adequacy of the facilities described therein, and if
warranted, will cxtend the permit for such period of time and under .such conditions and limitations as it
may deem appropriate.
Permit issued this the 22nd day of December, 2004
NORTHi OLETA ENVIRONi" ENTAL MANAGEMENT COWZSSZON
Alan W. Klimek, P.E., Director
Division of Water Quality
By Authority of the Environmental Management Commission
Permit Number WQ000270-"

La "u. raa..vaaa —1 ii.—J
Subject: [Fwd: ALCHEM, INC.]
From: Ed Hardee <[e-mail]>
Date: Fri, 13 May 2005 08:06:45 -0400
To: Ellen Huffman <[e-mail]>
CC: Peggy Finley <[e-mail]>
Subject: ALCHEMVI, INC.
From: "Janet Leach" <[e-mail]>
Date: Thu, 12 May 2005 17:09:39 -0400
To: <[e-mail]>, <[e-mail]>
We have received a petition from Alchem in reference to the Permit issued to them
on December 28, 2004. They have been in correspondence with DENR with concerns of
the new requirements in the permit. I need a copy of the permit with the cover
letter, a copy of the certified mail receipt showing delivery and acceptance date.
Please also give me names, titles and locations of any personnel who will be
witnesses in the event this case goes to a hearing. I need this information as
soon as possible. I have prepared a dismissal that should be filed next week,
early next week and I need the requested documents to file with it. Please have
the copies delivered to me at your earliest possible convenience. If anyone is
coming this way, hand delivery is much better than the mail.
The petition was filed on May 2, 2005;
Our prehearing statement is due in OAH on June 2, 2005;
Discovery should be complete on or before August 22, 2005;
Hearing is set for September 5, 2005.
he dismissal should be filed ASAP.
Stormie Forte is the attorney handling this case.
Thank you in advance for your prompt response. If you have any questions, please
contact me or Stormie.
ALCHEM, INC., Randall
(Cleveland County as o
Permit #WQ0002702
Recycle System, (Rowan
Andrews sales Manager
n OAH°s Caption)
County as on Permit)
ALCHEM'vD, INC. Content -Type: message/rfc822
Content -Encoding: 7bit
1 of 1 5/13/2005 8:12 AM

F WATT
�O 9Q Michael F. Easley, Governor
0 61 William G. Ross Jr., Secretary
�— North Carolina Department of Environment and Natural Resources
.0 Alan W. Klimek, P.E., Director
Division of Water Quality
NC DEPT. OF ENVIRONMENT
December 28, 2004 AND NARE AEL RES URGES
Mr. Randall Andrews JAN 1 4 2005
Alchem, Inc.
8135 Red Road
Rockwell, NC 28138 MOOR GROUNDWATER SESVILLE REGIONAL CTION
Subject: Permit No. WQ0002702
Alchem, Incorporated
Industrial Recycle -Bauxite Process
Rowan County
Dear Mr. Andrews:
In accordance with your request for renewal received September 23, 2004, we are forwarding herewith
Permit No. WQ0002702, dated December 28, 2004, to Alchem, Inc. for the continued operation of the three (3)
lagoon recycle system.
This permit shall be effective from the date of issuance until November 30, 2009, shall void Permit No.
WQ0002702 issued January 21, 1999, and shall be subject to the conditions and limitations as specified therein.
Please pay particular attention to the monitoring requirements in this permit. Groundwater sampling is now
required in monitor wells MW-1, MW-2, and MW-3 and surface water sampling will be performed on the stream
behind the property every February, June, and October for Total Dissolved Solids, pH, Sulfates, Specific
Conductivity, Aluminum, Total Suspended Solids, and water level. A scaled map of the facility must be prepared
and submitted to the Division. The recycled water will be required to have a pH of not less than 6.0 as it leaves
the wash area and goes into the storage lagoon. A site life estimate and a long range plan for future residuals
disposal are also required. The material removed from Lagoons 1 & 2 during the next lagoon cleanout is required
to have pH readings taken and documented, and the liners of each lagoon are to be inspected and tested (as
necessary) by a Professional Engineer. Repairs are to be made as needed. The pennittee is required to seek
alternate disposal/re-use options for the fill and submit a proposed schedule for their implementation. The City
Water Supply Line is required to be re -located to the upper perimeter of the residual fill area. Failure to establish
an adequate system for collecting and maintaining the required operational information will result in future
compliance problems. The berm which has been constructed around the residual fill area is to be maintained so as
to keep the fill and/or accumulated rainwater from leaving the fill area.
This permit is being renewed by itself and is not being combined with Permit No. WQ0016338 at this
time, as the application for the renewal of Permit No. WQ0016338 has not yet been received by the Division.
Nne
or hCarolina
Iatura!!y
Aquifer Protection Section 1636 Mail Service Center Raleigh, NC 27699-1636 Phone [phone] Customer Service
Internet: h2o.enr.state.nc.us 2728 Capital Boulevard Raleigh, NC 27604 FAX [phone]
An Equal Opportunity/Affirmative Action Employer— 50% Recycledl10% Post Consumer Paper

A Notice of Violation was issued against the facility under Permit No. WQ0002702 on January 7, 2001
for violations of State Groundwater Quality Standards as evidenced by the laboratory analyses of groundwater
samples taken during the course of monitoring on -site monitor wells.
A Notice of Violation was also issued against the facility under Permit No. WQ0002702 on May 12, 2003
in response to a release of residuals into a drainage/wooded area and an intermittent stream. The permittee was
cited for failing to properly operate and maintain the facility as a non -discharge facility, failure to cease reuse
operation once nuisance conditions existed, failure to provide adequate provisions to prevent surface runoff from
conveying. 'polliitafits into 'surface waters, and failure to notify the Division of the residuals release into the
receiving stream.
If any parts, requirements, or limitations contained in this permit are unacceptable, you have the right to
request an adjudicatory hearing upon written request within thirty (30) days following receipt of this permit. This
request must be in the form of a written petition, conforming to Chapter 150B of North Carolina General Statutes,
and ::.filed with the Office,, of Administrative Hearings, 6714 Mail Service Center, Raleigh, NC 27699-6714.
Unless such demands are made this permit shall be final and binding.
6162.
If you need additional information concerning this matter, please contact David Goodrich at (919) 715-
/Alan W
cc: Rowan County Health Department
Moo e y tie Regional -Office, Aquife�Protection_Section.
Technical Assistance and Certification Unit
Aquifer Protection Central Files
Permit Files
Klimek, P.E.
2

NORTH CAROLINA
ENVIRONMENTAL MANAGEMENT COMMISSION
DEPARTMENT OF ENVIRONMENT AND NATURAL RESOURCES
RALEIGH
RECYCLE SYSTEM PERMIT
In accordance with the provisions of Article 21 of Chapter 143, General Statutes of North Carolina as amended,
and other applicable Laws, Rules, and Regulations
PERMISSION IS HEREBY GRANTED TO
Alchem, Incorporated
Rowan County
FOR THE
continued operation of a wastewater recycle system consisting of 3 settling lagoons to serve Alchem, Inc., with no
discharge of wastes to the surface waters, pursuant to the application received September 23, 2004, and in
conformity with the project plan, specifications, and other supporting data subsequently filed and approved by the
Department of Environment and Natural Resources and considered a part of this permit.
This permit shall be effective from the date of issuance until November 30, 2009, shall void Permit No.
WQ0002702 issued January 21, 1999, and shall be subject to the following specified conditions and limitations:
This permit shall become voidable unless the facilities are constructed in accordance with the conditions of
this permit, the approved plans and specifications, and other supporting data.
2. This permit is effective only with respect to the nature and volume of wastes described in the application
and other supporting data.
3. The facilities shall be properly maintained and operated at all times.
4. This permit is not transferable. In the event there is a desire for the facilities to change ownership, or there
is a name change of the Permittee, a formal permit request must be submitted to the Division of Water
Quality (Division) accompanied by an application fee, documentation from the parties involved, and other
supporting materials as may be appropriate. The approval of the request will be considered on its merits
and may or may not be approved.
In the event that the facilities fail to perform satisfactorily, including the creation of nuisance conditions, the
Permittee shall take immediate corrective action, including those actions that may be required by this
Division, such as the construction of additional or replacement treatment or disposal facilities.
6. The residuals generated from these treatment facilities must be disposed in accordance with General Statute
143-215.1 and in a manner approved by the Division.
7. The issuance of this permit shall not relieve the Permittee of the responsibility for damages to surface or
groundwaters resulting from the operation of this facility.

The facilities shall be effectively maintained and operated as a non -discharge system to prevent the
discharge of any wastewater resulting from the operation of this facility.
Diversion or bypassing of untreated wastewater from the treatment facilities is prohibited.
10. Freeboard in all of the lagoons shall not be less than two feet at any time.
It. Waste -level gauges, to monitor waste levels in the settling lagoons, shall be installed within 60 days of
issuance of this permit. These gauges shall have readily visible permanent markings indicating the
maximum liquid level at the top of the temporary liquid storage volume, minimum liquid level at the
bottom of the temporary liquid storage volume, and top of the dam elevations. Caution must be taken not to
damage the integrity of the liner when installing the gauges.
12. A protective vegetative cover shall be established and maintained on all earthen basin embankments
(outside toe of embankment to maximum pumping elevation), berms, pipe runs, erosion control areas, and
surface water diversions. Trees, shrubs, and other woody vegetation shall not be allowed to grow on the
earthen basin dikes or embankments. Earthen basin embankment areas shall be kept mowed or otherwise
controlled and accessible.
13. Within ninety (90) days of permit issuance, the recycled system shall be required to keep the recycled water
at a pH of not less than 6.0 Standard Units as it leaves the wash area and goes to the storage lagoon.
14. Within ninety (90) days of permit issuance, the permittee shall submit a site life estimate for the fill area.
15. Within ninety (90) days of permit issuance, the permittee shall submit a long-range plan for future residuals
disposal that shall include a timetable for implementation.
16. During the upcoming clean out of Lagoons 1 & 2 (scheduled for the spring season of 2005), a pH reading
shall be taken and documented on every load of material removed from the lagoon and placed in the sand
fill area. This information shall be conveyed to the Division within thirty (30) days of completion of the
clean out procedure.
17. At the conclusion of the clean out of Lagoons 1& 2 (scheduled for the spring season of 2005), the clay
liners of the lagoon shall be inspected and tested (as necessary) by a Professional Engineer. Repairs to the
liners shall be made as needed and prior to the resumption of use.
18. The pei-mittee shall actively seek alternate disposal/re-use options for the fill produced at the facility. An
alternate means of disposal, along with a proposed schedule for its implementation, shall be identified
within one (1) year of permit issuance and reported by letter to the Division's Central Office at the Aquifer
Protection Section, 1636 Mail Service Center, Raleigh, NC 27699-1636 and to the Mooresville Regional
Office at the Aquifer Protection Section, 610 East Center Avenue/ Suite 310, Mooresville, NC 28115.
19. The City Water Supply Line shall be re -located to the upper perimeter of the residual fill area within one (1)
year of permit issuance. Any problems with implementing this condition in a timely fashion shall be
reported by letter to the Division's Central Office at the Aquifer Protection Section, 1636 Mail Service
Center, Raleigh, NC 27699-1636 and to the Mooresville Regional Office at the Aquifer Protection Section,
610 East Center Avenue/ Suite 301, Mooresville, NC 28115.
20. Any monitoring deemed necessary by the Division to insure surface and ground water protection will be
established and an acceptable sampling reporting schedule shall be followed.
21. Adequate inspection, maintenance, and cleaning shall be provided by the Permittee to insure proper
operation of the subject facilities. The berm which has been constructed around the residual fill area shall be
maintained so as to keep the fill and/or accumulated rainwater from leaving the fill area.

22. The Permittee or his designee shall inspect the wastewater recycle facilities to prevent malfunctions and
deterioration, operator errors and discharges which may cause or lead to the release of wastes to the
environment, a threat to human health, or a nuisance. The Permittee shall maintain an inspection log or
summary including at least the date and time of inspection, observations made, and any maintenance,
repairs, or corrective actions taken by the Permittee. This log of inspections shall be maintained by the
Permittee for a period of three years from the date of the inspection and shall be made available to the
Division or other permitting authority, upon request.
23. Any duly authorized officer, employee, or representative of the Division may, upon presentation of
credentials, enter and inspect any property, premises or place on or related to the recycle system at any
reasonable time for the purpose of determining compliance with this permit, may inspect or copy any
records that must be maintained under the terms and conditions of this permit, and may obtain samples of
groundwater, surface water, or leachate.
24. The annual administering and compliance fee must be paid by the Permittee within thirty (30) days after
being billed by the Division. Failure to pay the fee accordingly may cause the Division to initiate action to
revoke this permit as specified by 15A NCAC 2H .0205 (c)(4).
25. Failure to abide by the conditions and limitations contained in this permit may subject the Permittee to an
enforcement action by the Division in accordance with North Carolina General Statute 143-215.6A to 143-
215.6C.
26. The issuance of this permit does not exempt the Permittee from complying with any and all statutes, rules,
regulations, or ordinances which may be imposed by other government agencies (local, state, and federal)
which have jurisdiction, including but not limited to applicable river buffer rules in 15A NCAC 213.0200,
erosion and sedimentation control requirements in 15A NCAC Chapter 4 and under the Division's General
Permit NCGO10000, and any requirements pertaining to wetlands under 15A NCAC 2B .0200 and 2H
.0500.20.
27. A set of approved plans and specifications for the subject project must be retained by the Permittee for the
life of this project.
28. Noncompliance Notification:
The Permittee shall report by telephone to the Mooresville Regional Office, telephone number (704) 663-
1699, as soon as possible, but in no case more than 24 hours or on the next working day following the
occurrence or first knowledge of the occurrence of any of the following:
a. Any occurrence at the wastewater treatment facility which results in the treatment of significant
amounts of wastes which are abnormal in quantity or characteristic, such as the dumping of the contents
of a basin or tank, the known passage of a slug of hazardous substance through the facility, or any other
unusual circumstances;
b. Any process unit failure, due to known or unknown reasons, that renders the facility incapable of
adequate wastewater treatment, such as mechanical or electrical failures of pumps, aerators,
compressors, etc.;
c. Any failure of a pumping station, sewer line, or treatment facility resulting in a by-pass directly to
receiving waters without treatment of all or any portion of the influent to such station or facility; or
d. Any time that self -monitoring information indicates that the facility is not in compliance with its permit
limitations.

Occurrences outside normal business hours may also be reported to the Division's Emergency Management
personnel at telephone number [phone], or [phone]. Persons reporting such occurrences by
telephone shall also file a written report in letter form within five (5) days following first knowledge of the
occurrence. This report must outline the actions taken or proposed to be taken to ensure that the problem
does not recur.
29. Upon classification of the wastewater treatment and spray irrigation facilities by the Water Pollution
Control System Operators Certification Commission (WPCSOCC), the Permittee shall designate and
employ a certified operator to be in responsible charge (ORC) and one or more certified operator(s) to be
back-up ORC(s) of the facilities in accordance with 15A NCAC 8G .0201. The ORC shall visit the
facilities in accordance with 15A NCAC 8G .0204 or as specified in this permit and shall comply with all
other conditions specified in these rules.
30. The recycle lagoons shall not be located within 100 feet of water supply wells.
31. Within sixty (60) days of permit issuance, the permittee shall submit two original copies of a scaled site
map (scale no greater than V=100'); however, special provisions may be granted upon prior approval for
large properties. The map(s) must include the following information:
a. The location and identity of each monitoring well.
b. The location of major components of the waste disposal system.
c. The location of property boundaries within 500 feet of the disposal area(s).
d. The latitude and longitude of the established horizontal control monument.
e. The elevation of the top of the well casing (which shall be known as the "measuring point") relative
to a common datum.
f. The depth of water below the measuring point at the time the measuring point is established.
g. The location of Review and Compliance Boundaries.
h. The date the map is prepared and/or revised.
32. Control monuments shall be installed in such a manner and made of such materials that the monument will
not be destroyed due to activities that may take place on the property. Maps and any supporting
documentation shall be sent to the Aquifer Protection Section's Central Office at 1636 Mail Service Center,
Raleigh, NC 27699-1636, and to the Mooresville Regional Office at the Aquifer Protection Section, 610
East Center Avenue/ Suite 301, Mooresville, NC 28115.
The permittee is responsible for the geographic accuracy of any map submitted, however produced.
33. Monitor wells MW-I, MW-2, MW-3, and the stream behind the property shall all be sampled every
February, June and October for the following parameters:
Total Dissolved Solids
Sulfates (SO4)
Aluminum
Water Level
pH
Specific Conductivity
Total Suspended Solids
The measurement of water levels must be made prior to sampling for the remaining parameters. The depth
to water in each well shall be measured from the surveyed point on the top of the casing.
The results of the sampling and analysis shall be received on the most -recent version of "Groundwater
Quality Monitoring: Compliance Report Form" (i.e., GW-59 Form) with copies of the laboratory analyses
attached by the Division's Aquifer Protection Section at the following address on or before the last working
day of the month following the sampling month:
4

NCDENR-DWQ
Information Processing Unit
1617 Mail Service Center
Raleigh, NC 27699-1617
Updated blank reporting forms may be downloaded from the web site for the Division's Aquifer Protection
Section at http://gw.ehnr.state.nc.us/ or requested from the address listed above.
34. The COMPLIANCE BOUNDARY for the disposal system is specified by regulations in 15A NCAC 2L,
Groundwater Classifications and Standards. The Compliance Boundary for the disposal system individually
permitted on or after December 30, 1983 is established at either 250 feet from the waste disposal area, or 50
feet within the property boundary, whichever is closest to the waste disposal area. An exceedance of
Groundwater Quality Standards at or beyond the Compliance Boundary is subject to remediation action
according to 15A NCAC 2L .0106(d)(2).
35. The REVIEW BOUNDARY is established around the disposal system midway between the Compliance
Boundary and the perimeter of the waste disposal area. Any exceedance of standards at the Review
Boundary shall require action in accordance with 15A NCAC 2L .0106(d)(1).
36. Any additional groundwater quality monitoring, as deemed necessary by the Division, shall be provided.
37. Permittee, at least six (6) months prior to the expiration of this permit, shall request its extension. Upon
receipt of the request, the Commission will review the adequacy of the facilities described therein, and if
warranted, will extend the permit for such period of time and under such conditions and limitations as it
may deem appropriate.
Permit issued this the 22nd day of December, 2004
NORTH VAROLINA ENVIRONMENTAL MANAGEMENT COMMISSION
Alan W. Klimek, P.E., Director
Division of Water Quality
By Authority of the Environmental Management Commission
Permit Number WQ0002702

T ALCHEM, INC
8135 RED ROAD
ROCKWELL, NC 28138
704-279-7908 fax [phone]
[e-mail]
September 21, 2004
NC DIVISION OF WATER QUALITY
NON -DISCHARGE PERMITTING UNIT
512 North Salisbury Street, Suite 1219
RALEIGH, NC 27604
RE: Permit #WQ0002702
Dear Sir:
ktw
j1A .
SEP 2 2004
DIV, OF WATER
DIRECT®,R,S © lCFTy
I would like to submit our application for a permit renewal for Permit Number
WQ0002702. We understand there is not a fee for renewal.
If you have any questions regarding this permit renewal application, please let me know.
Best regards,
ALCHEM, INC
rq
r• .
Randall F. Andrews
President
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Enclosures

State of North Carolina
Department of Environment and Natural Resources
Division of Water Quality
WASTEWATER RECYCLE SYSTEMS
(THIS FORM MAY BE PHOTOCOPIED FOR USE AS AN ORIGINAL)
Application Number: (to be completed by DWQ)
I. GENERAL INFORMATION:
1. Project Name: ALCHEM, INC Renewal Permit #H00002702
2. Applicant's name (Name of the owner of the facility. If a company or corporation it must be registered with
the Secretary of State): RANDALL F. ANDREWS
3. Name and complete mailing address of applicant. 8135 Red Road
4.
5.
City: Rockwell. State: NC Zip: 28138
Telephone number: ( 704) 279-7908 Facsimile number: (704— ) 279-8418
Email Address: [e-mail]
Project name (name of the facility): ALCHEM. INC
Complete address of the physical location of the facility if different from mailing address of applicant:
City: same State: Zip:
6. County where project is located: Rowan
7. Name and complete address of engineering or consulting firm:
8
City: State: Zip:
Telephone number: ( ) Facsimile number:(—)
Name and affiliation of contact person who can answer questions about project: Wayne Drye,
Plant Manager Email Address: [e-mail]
II. PERMIT INFORMATION:
1. Project is: new; modification; XXX renewal without modification
Note: Renewals without modifications should just fill out sections I & II; sign the applicants signature on Page 5.
2. Fee submitted: $ n/a (See Instruction C.)
I If this application is being submitted as a result of a modification to an existing permit, provide:
existing permit number n/a and the issuance date
4. Applicant is: public, XX private
5. If project disturbs more than one acre, provide date when an erosion and sedimentation control plan was
submitted to the Division of Land Resources, or local delegated program, for approval:
n/a
6. If project includes any stream or wetland impacts, provide date when Nationwide 12 or 404 permit was
submitted for approval: n/a permit renewal
7. Provide buffers used to maintain compliance with any applicable river basin rules in 15A NCAC 213 .0200
(e.g., Neuse River basin buffer rules, etc.): n/a
FORM: RFA 01-02 Page 3 of 5

Professional Engineer's Certification:
I, , attest that this application for
has been reviewed by me and is
accurate, complete and consistent with the information supplied in the engineering plans, calculations, and all other
supporting documentation to the best of my knowledge. I further attest that to the best of my knowledge the
proposed design has been prepared in accordance with this application and its instructions as well as all applicable
regulations and statutes. Although certain portions of this submittal package may have been developed by other
professionals, inclusion of these materials under my signature and seal signifies that I have reviewed this material
and have judged it to be consistent with the proposed design. Note: In accordance with NC General Statutes 143-
215.6A and 143-215.613, any person who knowingly makes any false statement, representation, or certification in any
application shall be guilty of a Class 2 misdemeanor which may include a fine not to exceed $10,000 as well as civil
penalties up to $25,000 per violation.
North Carolina Professional Engineer's seal, signature, and date:
Applicant's Certification:
I RANDALL F . ANDREWS renewal of
attest that this application for
permit #WQ0002702 has been reviewed by me and is
accurate and complete to the best of my knowledge. I understand that any discharge of wastewater to surface waters
or the land will result in an immediate enforcement action which may include civil penalties, injunctive relief, and/or
criminal prosecution. I will make no claim against the Division of Water Quality should a condition of this permit be
violated. I also understand that if all required parts of this application are not completed and that if all required
supporting information and attachments are not included, this application package will be returned to me as
incomplete. Note: In accordance with NC General Statutes 143-215.6A and 143-215.613, any person who
knowingly makes any false statement, representation, or certification in any application shall be guilty of a Class 2
misdemeanor w h may include a fine not to exceed $10,000 as well as civil penalties up to $25,000 per violation.
Signature: A1Q�. �� Date: 9-21-04
FORM: RFA 01-02 Page 5 of 5

�OF W AT F9Q Michael F. Easley, Governor
�O G William G. Ross Jr., Secretary
Uj 7 North Carolina Department of Environment and Natural Resources
> r
p Alan W. Klimek, P.E., Director
Coleen H. Sullins, Deputy Director
Division of Water Quality
September 28, 2004
Randall Andrews
Alchem, Inc
8135 Red Road
Rockwell, NC 28138
Subject: Acknowledgement of Application No. WQ0002702
Alchem, Inc
Recycle System
Rowan County
Dear Mr. Andrews:
The Non -Discharge Permitting Unit of the Division of Water Quality (Division) acknowledges receipt of
your permit application and supporting materials on September 23, 2004. This application package has
been assigned the number listed above and will be reviewed by David Goodrich.
The reviewer will perform a detailed review and contact you with a request for additional information if
necessary. To ensure the maximum efficiency in processing permit applications, the Division requests
your assistance in providing a timely and complete response to any additional information requests.
Please be aware that the Division's Regional Office, copied below, must provide recommendations prior to
final action by the Division. Please also note at this time, processing permit applications can take as long
as 60 - 90 days after receipt of a complete application.
If you have any questions, please contact David Goodrich at 919-715-6162 or via e-mail at
[e-mail]. If the reviewer is unavailable, you may leave a message, and they will
respond promptly.
PLEASE REFER TO THE ABOVE APPLICATION NUMBER WHEN MAKING INQUIRIES ON THIS
PROJECT.
-7LT"
./mum
cc: Mooresville Regional Office, Water Quality Section
Wayne Drye
Plant Manager, ALCHEM, Inc.
8135 Red Road
Rockwell, NC 28138
Permit Application File WQ0002702 .
Non -Discharge Permitting Unit
1636 Mail Service Center, Raleigh, NC 27699-1636
ZMA
Internet http://h2o.enr.state.nc.us/ndpu t+ICOENR
Telephone [phone] Fax [phone]
DENR Customer Service Center
An Eaual OoaortunitvAction Emolover
Telephone [phone]
50% recvcled/10% oost-consumer Daoer

AQUIFER PROTECTION REGIONAL STAFF REPORT
Date: 10/25/04 County: Rowan
To: Aquifer Protection Central Office . Permittee: Mr. Randall Andrews
Central Office Reviewer:. David Goodrich Project Name: Alchem. Inc.
Application No.: W00002702
W00016338
I GENERAL INFORMATION
1. This application is (check all that apply): ❑ New ® Renewal ❑ Renewal. with mod.
❑ Minor Modification ❑ Major Modification
❑ Surface Irrigation ❑ Reuse ® Recycle ❑ High Rate Infiltration LJ Evaporation/Infiltration Lagoon
Land Application of Residuals ❑ Attachment B included ❑ 503 regulated ® 503 exempt
❑ Distribution of Residuals ® Surface Disposal
❑ Closed -loop Groundwater Remediation ❑ Other Injection Wells (inclucj' g_tn„situ_ remediation
A ,.. o )
Was a site visit conducted in order to prepare this report? ® Yes or ❑ No.�TT""'""'��'Ay"�
a. Date of site visit: 10/21/2004 M
b. Person contacted and contact information: Wayne D ,rye 704/279-7908 -�
c. Site visit conducted by: Ellen Huffman, Peggy Finley �.! L T e 20- _�
d. Inspection Report Attached: ❑ Yes or ® No. -
---- -J
2. Is the following information entered into the BIMS record for this application c rrect? OBIR - WATER 01JALITY
POINT SOURCE BRANCH
❑ Yes or ® No. If no, please complete the following or indicate that it is correct on-t6".current_application.
- iN.u..u:.d�.:...w:G:�ra:Fw..Tw..w:i.w✓-u.Jr..fx. t+:..:t"i
For Treatment Facilities:
a. Location: 8135 Red Road, Rockwell, NC 28138
a. Driving Directions: From the intersection of Hn 152 and Hwy 52, go north on Hwy 52 to Cornelius Road. Go
west lefty on Cornelius Rd to Red Road. Go north (right) on Red Road. Facility will be on the right of Red
Road.
b. USGS Quadrangle Map name and number: E 17 SW
c. Latitude:35°33'52" Longitude:80°25'26"
d. Regulated Activities / Type of Wastes (e.g., subdivision, food processing, municipal wastewater):
Mining, chemical processing The SIC code on file is 2819. It is unclear to the writer weather there needs to
be a stormwater permit required for this site:
For Disposal and Iniection Sites:
a. Location(s): Same as above. F;
b. Driving Directions: 4.
C. USGS Quadrangle Map name and number:.
d. Latitude: Longitude: ; ( tit)) i (j i"i �] { 1 Q
ic

' a
AQUIFER' PROTECTION REGIONAL STAFF REPORT
Ill. RENEWAL AND MODIFICA TIONAPPLICA TIONS (use previous section for new or major modi rcation
s stems
Description Of Waste(S) And Facilities .
1. Are there appropriately certified ORCs for the facilities? 0 Yes or ❑ No. ® Not applicable
Operator in Charge: Certificate #:.
Backup- Operator in Charge: Certificate #:
2. Is the design, maintenance and operation (e.g. adequate aeration, sludge wasting, sludge storage, effluent storage,
etc) of the treatment facilities adequate for the type of waste and disposal system? ❑ Yes or ® No. If no, please
explain: The facility was originally permitted by DENR Water Quality (W(10002702 wastewater recycle) in 1990,
only because it was discovered through a complaint from a neighbor concerning the neighbor's well The facilitv
was designed to process bauxite (a mixture of aluminum hydroxides) with sulfuric acid for production of
aluminum sulfate. The process creates a by-product of sand slurry left over from processing The sand is supposed
to be washed until the pH is elevated to a minimum of 4.0 and then pumped to drying lagoons The liquid from the
sand/slurry drying lagoons is returned to the processing water tank for re -use The sand/slum is left in one of two
permitted lagoons to de -water. The two original lagoons were calculated to hold approximately 15 months of
residuals sand/slurry production Information from the (Solid Waste Section) files indicates that the permittee
started producing the sand slurry sometime in 1985 The writer was informed by Wayne Drye Alchem Manager
(during the site visit 10/21/2004) that when the lagoons were full the residual sand was excavated by using a
backhoe. Back in 1985, it was hauled off site to be used by a fertilizer company as filler. The files also include
correspondence indicating that ALCHEM looked into landfilling the material as an alternate disposal option A
letter dated Aug. 6. 1984, from DEHNR Solid and Hazardous Waste Div informed the permittee that the residual
sand had to be adjusted a pH between 6.0 to 9.0 prior to landfilling It is not clear that ALCHEM ever hauled
material to the landfill. In 1993 the facility was permitted by DWQ to build three more lagoons for a total of five
To date, only three lagoons have been built the original lagoon and two more
Permit W00016338 (residuals reuse) was issued in 1999 to use the residual sand as structural fill on site There is
no pH limit in the permit issued in 1999 A landfill would rpquire a pH adjustment of at least 6.0 prior to disposal.
This residual sandy fill area failed in July 2003 when large amounts of the sandy fill (est volume unknown)
which is fairly light weight were washed into the creek behind the facility by a rain event (see photos attached).
The material traveled for about 1 mile down stream, filling in the creek 12-18" thick in places and lowering the
stream pH from an average of 6.7 (upstream) to 3.8 and 4 7 effectively killing any stream life W00016338 was
issued an NOWNRE on August 19 2003 assessed $10 478 28 The fine -was petitioned and reduced to $5 998 28
The facility has since built an earthen berm (8' deep by 8' wide at the bottom and 5' wide at the top) around the fill
material area to correct the problem as requested by MRO (in August 2003) and to keep the fill on site Drawing

AQUIFER PROTECTION REGIONAL STAFF REPORT
attached. Inspection of the berm on 10/21/2004 indicates that it is currently workin to o keep the residuals on site
however, in places, the fill is much higher than the berm and the topography of the site leads the writer to question
weather the berm is built high enough to keep the sandy fill in place See photos attached.'Review of the
sand/residuals analyses from 1999 2000 2001 2002 all show pH of < 4.0. It is the 'pinion of the
writer that the material is not effectively washed (of the sulfuric acid) in the system before it stored in the
lagoon and ultimately used as on -site fill Requested information from' ALCHEM concerningstream pH
data leads the writer to believe there is a stormwater run-off issue The data reflects a drop in pH after a
rain event. See data attached.
3. Are the site conditions (soils, topography, depth to water table,- etc) maintained appropriately and. adequately.
assimilating the waste? ❑ Yes or ® No. If no, please explain: Inspection of this berm on 10/21/2004 indicates
that the berm is currently working to keep the residuals on site,• however, in`places the fill is much higher than the
berm and the tovotu'anhy of the site leads the writer to question weather the berm is built high enough to o keep the
sandy fill in place. See photos and copy of topographical survey map attached The writer is concerned about the
area where the digester/reactors are located It appears that there is always standing water at least 12' deep in a
ditch around the reactors. It also looks as if there is a lot of erosion around the cement pad that the digesters sit on
This water is from washing' the he spent bauxite sand that fell out of the overhead conveyors that take the spent
bauxite to the wash recycle system..This area drains to lagoon # 1 This residual sand is basically never washed of
the residual sulfuric acid.
4. Has the site changed in any way that may affect permit (drainage added, .new 'wells inside the compliance
boundary, new development, etc.)? If yes, please explain: The berm has changed the nature of non -discharge
permit W00016338 and should be reflected in the renewal currently in house The fill disposal area is now
completely bermed and resembles an unlined surface disposal system Also noted was that the facility did not have
enough process water available from the on site water supply well and rainwater The facility recently piped in a 2
%s inch water supply line from the City (August 2004) This waterline was placed RIGHT THROUGH THE FILL
,AREA approximately 2 — 3 feet below the surface The writer is concerned that the placement of this water line
and the use of heave equipment right over the line could possibly shift the material enough to crack. break a sealed
joint, or rupture the water line. A 2 %Z inch water line could deliver enough water to cause another residuals breach
if not caught in time. This water line should be placed around the upper edge of the property effectively skirting
the residual fill area.
5. Is the residuals management plan for the facility adequate and/or acceptable to the Division?
❑ Yes or ® No. If no, please explain: The writer is concerned that the current fill area has a limited life and
appears to be 80% filled. There is no long-range plan for the residuals once this area is filled to capacity 'This
permit renewal should require a plan be submitted within 3 months of issuance of renewal

r
AQUIFER PROTECTION REGIONAL STAFF REPORT
6. Are the existing application rates (hydraulic or nutrient) still acceptable? ❑ Yes or ❑ No. ® Not applicable
If no, please explain: There are no application rates. This facility now appears to be a permanent on site storage
facility, a surface disposal system or a surface landfill with no restrictions other than a disposal volume limit of
300 dry tons"per year.
7. Is the existing groundwater monitoring program (number of wells, frequency of monitoring, monitoring
parameters, etc.) adequate? ❑ Yes ® No ❑ N/A. Attach map of existing monitoring well network if applicable.
Indicate the review and compliance boundaries. If No, explain and recommend any changes to the groundwater
monitoring program: Please see attached data and comments from Peggy Finley MRO APS
8. Will seasonal or other restrictions be required for added sites? ❑ Yes ❑ No ® N/A If yes, attach list of sites
with restrictions (Certification B?)
9. Are there any buffer conflicts (treatment facilities or disposal sites)? ❑ Yes or ® No. If yes, please attach a map
showing conflict areas or attach any new maps you have received from the applicant to be incorporated into the
permit:
10. Is the description of the facilities, type and/or volume of waste(s) as written in the existing permit correct? ❑ Yes
or ® No. If no, .please explain: The residuals handling plan has changed since issuance of the per See
comments above in #2 #4 and #5
11. Were monitoring wells properly constructed and located? ® Yes or ❑ No ❑ N/A. If no, please explain:
The APS may want to require more extensive g[oundwater monitoring of this site due to the history of and past
performance of this facility.
12. Has a review of all self -monitoring data been conducted (GW, NDMR, and NDAR as applicable)? ® Yes or ❑
No ❑ N/A. Please summarize any findings resulting from this review: There are concerns that the monitoring
well by lagoon #2 indicates that the lagoon liner may have been compromised perhaps during past cleaningof f the
sand fill (by,a backhoe) from the lagoon The pH has dropped and the amount of aluminum has risen See data
attached.
13. Check all that apply: ❑ No compliance issues; ® Notice(s) of violation within the last permit cycle;
❑ Current enforcement. action(s) ❑ Currently under SOC; ❑ Currently under JOC; ❑ Currently under
moratorium. If any items checked, please explain and attach. any documents that may help clarify
answer/comments (such as NOV, NOD etc): Please note comments in #2.
14. Have all compliance dates/conditions in the existing permit, (SOC, JOC; etc.) been complied with? ❑ Yes
No ® Not Determined ❑ N/A.. If no, please explain: There is currently a third party lawsuit (concerning_ the
events in August 2003) that has not been resolved One of the complainants has refused to let ALCHEM finish
clean up of the affected stream on their property
15. Are there any issues related to compliance/enforcement that should be resolved before issuing this permit?
0 Yes or ® No ❑ N/A. If yes, please explain:

1
AQUIFER PROTECTION REGIONAL STAFF REPORT
V. EVALUATIONAND RECOMMENDATIONS
I. Provide any additional narrative regarding your review of the application:
Monitoring well violation 1/7/2001 for aluminum
A trend of increasing aluminum concentrations is reflected in the data for monitoring well #2 See data attached
A review of the Solid Waste files indicated that Alchem could take the sand to the landfill after the p H was
adjusted to 6.0 by mixing with lime A similar pH adjustment of the residual fill should be required for permit
W00016338. .
Concerns about the placement of a City supply water line through the fill area
2. Attach Well Construction Data Sheet - if needed information is available. Attached.
3. Do you foresee any problems with issuance/renewal of this permit? ® Yes ❑ No. If yes, please explain briefly.
The writer questions the issuance of two permits for this system Permit W00002702 regulates the recycle system
while permit WQQ016338 deals with the sand washed by the recycle system The sand washed by the recycle
system should be incorporated into the recycle permit since it is a byproduct of the wash/recycle system A review
of the non -discharge files reveals that this facility has had multiple problems over the years. Combining these
permits will make it easier to track their performance There is now a berm that has been constructed around the I `
fill area. The writer questions the height of this berm The rainwater is collected from the residual fill area storm -
water collection pond (inside the berm) and is pumped back to the recycle system It is not clear if a stormwaterIjCzi )
permit needs to be applied for The fill area has effectively become an unlined surface disposal landfill This fact
should be reflected in the renewed permit and language should be added for maintenance of the berm
4. List any items that you would like APS Central Office to obtain through an additional information request. Make
sure that you provide a reason for each item: None.
5. List specific Permit conditions that you recommend to be removed from the permit when issued. Make sure that
you provide a reason for each condition: None.
6. List specific special conditions or compliance schedules that you recommend be included in the permit when
issued. Make sure that you provide a reason for each special condition:
Within three months of issuance of permit renewal:
1. The recycle system should be required to keep the recycled water to a pH of not less than 6.0 as it leaves the
wash area and goes into the storage lagoon. This would effectively raise the pH of the residual sand slurry�� 3i
stored in the lagoon until it is used as fill. .
2. Submit,a site life estimate for the fill area.
3. Submit a long-range plan for future residuals disposal.
4. Require monitoring of stream behind property pH and other constituents? C� 3)
5. During the next lagoon clean out, scheduled for the spring of 2005, a pH reading should be taken and .1'1� CI 6l
documented on every load removed and placed in the sand fill area.
6. After the next lagoon clean out, require inspection/testing of the clay liners by a certified engineer and require
repairs to be made as needed. /, l

ALCHEM, INC. Rowan County
W00002702 Groundwater Monitoring Data for 2002-2004
Date MW 1)
MW 2
Field
2/02 pH, lab 6.40
5.6
Al .089 mg/I
0.77 mg/1
Field 5.7
5.3
7/02 pH Lab 6.0
5.0
Al .088 mg/l
.137 mg/I
Field 5.85
5.10
2/03 pH Lab 7.06
5.62
Al .034 mg/I
.340 mg/I
Field 5.8.
5.6
7/03 pH Lab 5.68
4.69
AI .281 mg/I
.178 mg/I
Field 6.5
5.2
2/04 pH Lab 6.08
4.99
Al .062 mg/I
.207 mg/I
Field 6.0
5.2
8/04 pH Lab. 5.62
4.71
Al .125 mg/1
.596 mg/I
These replacement wells were installed in January 2002
Comments: Groundwater monitoring indicates a downward trend in. pH and an upward
trend in aluminum for MW-2.
Recommendations:
Submit a scaled topographic map showing the facility, including
1. scale
2. north arrow
3. the location of the property boundary
4. the three lagoons
5. the two replacement monitoring wells (including a survey
of the casing
elevations)
6. the fill area
7. the stormwater detention pond
8. the municipal water line
9. water supply wells within 500 feet

AQUIFER PROTECTION REGIONAL STAFF REPORT
7. The writer questions if groundwater monitoring is adequate (i.e. the number of monitoring wells, frequency of
sampling, and parameters).
1. Recommendation: ❑ Hold, pending receipt and review of additional information by regional office, Z Hold,
pending review of draft permit by regional office; ® Issue upon receipt of needed additional information;
Issue; ❑ Deny. If deny, please state reasons:
It is recommended by MR®:
I- That the two separate permits issued for this facility be merged into one permit.F' )Vol
2- The permittee seek alternate disposal/re-use options for the fil l produced at the facility.
3- After the next cleaning of lagoons one and two. scheduled for the spring of 2005, the clay liners be inspected jj,�
by a certified engineer. Any repairs need be made at that time.
4- That the City water supply line be moved to the upper perimeter of the residual fill area. W l l y�
2. Signature of report preparer(s):
± �V' Signature of APS regional supervisor: t v- Z C' `1
Date:
ADDITIONAL REGIONAL STAFF REVIEW ITEMS
None.
Attachments
Damage from the spill in August 2003.
� 1 �1 L'S i? C/i'�� C'`' ���j Gf�� � ��GLrG'�7$ i"•f I,�9

AQUIFER PROTECTION REGIONAL STAFF REPORT
Damage from spill August 2003
Origin of runoff— August 2003
New berm around fill area -photo 10-2004 La;oon #2 to be cleaned in spring 2005-photo 10 2004
Berm in forground showing height of fill.Storm pond on left Berm in background Fill debris and stormwater pond

AEchem, Inc. W00016338 and W00002702 i i206-37

view from the berm looking at stormwater collection pond
stockpiled fill in disposal area

W AT �RQG
Michael F. Easley, Governor
-7 William G. Ross Jr., Secretary
> r North Carolina Department of Environment and Natural Resources
Alan W. Klimek, P.E., Director
Division of Water Quality
December 28, 2004
Mr. Randall Andrews
Alchem, Inc.
8135 Red Road
Rockwell, NC 28138
Subject: Permit No. WQ0002702
Alchem, Incorporated
Industrial Recycle -Bauxite Process
Rowan County
Dear Mr. Andrews:
In accordance with your request for renewal received September 23, 2004, we are forwarding herewith
Permit No. WQ0002702, dated December 28, 2004, to Alchem, Inc. for the continued operation of the three (3)
lagoon recycle system.
This permit shall be effective from the date of issuance until November 30, 2009, shall void Permit No.
WQ0002702 issued January 21, 1999, and shall be subject to the conditions and limitations as specified therein.
Please pay particular attention to the monitoring requirements in this permit.. Groundwater sampling is now
required in monitor wells MW-1, MW-2, and MW-3 and surface water sampling will be performed on the stream
behind the property every February, June, and October for Total Dissolved Solids, pH, Sulfates, Specific
Conductivity, Aluminum, Total Suspended Solids, and water level. A scaled map of the facility must be prepared
and submitted to the Division. The recycled water will. be required to have a pH of not less than 6.0 as it leaves
the wash area and goes into the storage lagoon. A site life estimate and a long range plan for future residuals
disposal are also required. The material removed from Lagoons 1 & 2 during the next lagoon cleanout is required
to have pH readings taken and documented, and the liners of each lagoon are to be inspected and tested (as
necessary) by a Professional Engineer. Repairs are to. be made as needed. The pennittee is required to seek
alternate disposal/re-use options for the fill and submit a proposed schedule for their implementation. The City
Water Supply Line is required to be re -located to the upper perimeter of the residual fill area. Failure to establish
an adequate system for collecting and maintaining the required operational information will result in future
compliance problems. The berm which has been constructed around the residual fill area is t6 be maintained so as
to keep the fill and/or accumulated rainwater from leaving the fill area.
This permit is being renewed by itself and is not being combined with Permit No. WQ0016338 at this
time, as the application for the renewal of Permit No. WQ0016338 has not yet been received by the Division.
NorthCarolina
Nlatfl ra!!y
Aquifer Protection Section 1636 Mail Service Center Raleigh, NC 27699-1636 Phone [phone] Customer Service
Internet: h2o.enr.state.nc.us 2728 Capital Boulevard Raleigh, NC 27604 FAX [phone]
An Equal Opportunity/Affirmative Action Employer— 50% Recycled/10% Post Consumer Paper

A Notice of Violation was issued against the facility under Permit No. WQ0002702 on January 7, 2001
for violations of State Groundwater Quality Standards as,evidenced by the laboratory analyses of groundwater
samples taken during the course of monitoring on -site monitor wells.
A Notice of Violation was also issued against the facility under Permit No. WQ0002702 on May 12, 2003
in response to a release of residuals into a drainage/wooded area and an intermittent stream. The permittee was
cited for failing to properly operate and maintain the facility as a non -discharge facility, failure to cease reuse
operation once nuisance Iconditions existed, failure to provide adequate provisions to prevent surface runoff from
conveying pollutants into surface waters, and failure to notify the Division of the residuals release into the
receiving stream.
If any parts, requirements, or limitations contained in this permit are unacceptable, you have the right to
request an adjudicatory hearing upon written request within thirty (30) days following receipt of this permit. This
request must be in the form of a written petition, conforining to Chapter 150B of North Carolina General Statutes,
and filed with the Office of Administrative Hearings, 6714 Mail Service Center, Raleigh, NC 27699-6714.
Unless such demands are made this permit shall be final and binding.
If you need additional information concerning this matter, please contact David Goodrich at (919) 715-
6162.
Sincere
/Alan W. Klimek, P.E.
cc: Rowan County Health Department
Mooresville Regional Office, Aquifer Protection Section
Technical Assistance and Certification Unit
Aquiver Protection Central Files
Permit Files

NORTH CAROLINA
ENVIRONMENTAL MANAGEMENT COMMISSION
DEPARTMENT OF ENVIRONMENT AND NATURAL RESOURCES
RALEIGH
RECYCLE SYSTEM PERMIT
In accordance with the provisions of Article 21 of Chapter 143, General Statutes of North Carolina as amended,
and other applicable Laws, Rules, and Regulations
PERMISSION IS HEREBY GRANTED TO
A.lchem, Incorporated
Rowan County
FOR THE
continued operation of a wastewater recycle system consisting of 3 settling lagoons to serve Alchem, Inc., with no
discharge of wastes to the surface waters, pursuant to the application received September 23, 2004, and in
conformity with the project plan, specifications, and other supporting data subsequently filed and approved by the
Department of Environment and Natural Resources and considered a part of this permit.
This permit shall be effective from the date of issuance until November 30, 2009, shall void Permit No.
WQ0002702 issued January 21, 1999, and shall be subject to the following specified conditions and limitations:
1. This permit shall become voidable unless the facilities are constructed in accordance with the conditions of
this permit, the approved plans and specifications, and other supporting data.
2. This permit is effective only with respect to the nature and volume of wastes described in the application
and other supporting data.
The facilities shall be properly maintained and operated at all times.
4. This permit is not transferable. In the event there is a desire for the facilities to change ownership, or there
is a name change of the Penmittee, a formal permit request must be submitted to the Division of Water
Quality (Division) accompanied by an application fee, documentation from the parties involved, and other
supporting materials as may be appropriate. The approval of the request will be considered on its merits
and may or may not be approved.
5. In the event that the facilities fail to perform satisfactorily, including the creation of nuisance conditions, the
Permittee shall take immediate corrective action, including those actions that may be required by this
Division, such as the construction of additional or replacement treatment or disposal facilities.
6. The residuals generated from these treatment facilities must be disposed in accordance with General Statute
143-215.1 and in a manner approved by the Division.
7. The issuance of this permit shall not relieve the Permittee of the responsibility for damages to surface or
groundwaters resulting from the operation of this facility.

8. The facilities shall be effectively maintained and operated as a non -discharge system to prevent the
discharge of any wastewater resulting from the operation of this facility.
9. Diversion or bypassing of untreated wastewater from the treatment facilities is prohibited.
10. Freeboard in all of the lagoons shall not be less than two feet at any time.
11. Waste -level gauges, to monitor waste levels in the settling lagoons, shall be installed within 60 days of
71 issuance of this permit. These gauges shall have readily visible permanent markings indicating the
maximum liquid level at the top of the temporary liquid storage volume, minimum liquid level at the
bottom of the temporary liquid storage volume, and top of the dam elevations. Caution must betaken not to
damage the integrity of the liner when installing the gauges.
12. A protective vegetative cover shall be established and maintained on all earthen basin embankments
(outside toe of embankment to maximum pumping elevation), berms, pipe runs, erosion control areas, and
surface water diversions. Trees, shrubs, and other woody vegetation shall not be allowed to grow on the
earthen basin dikes or embankments. Earthen basin embankment areas shall be kept mowed or otherwise
controlled and accessible.
13. Within ninety (90) days of pen -nit issuance, the recycled system shall be required to keep the recycled water
at a pH of not less than 6.0 Standard Units as it leaves the wash area and goes to the storage lagoon.
14. Within ninety (90) days of permit issuance, the permittee shall submit a site life estimate for the fill area.
15. Within ninety (90) days of permit issuance, the permittee shall submit a long-range plan for future residuals
disposal that shall include a timetable for implementation.
16. During the upcoming clean out of Lagoons 1 & 2 (scheduled for the spring season of 2005), a pH reading
shall be taken and documented on every load of material removed from the lagoon and placed in the sand
fill area. This information shall be conveyed to the Division within thirty (30) days of completion of the
clean out procedure.
17. At the conclusion of the clean out of Lagoons 1& 2 (scheduled for the spring season of 2005), the clay
liners of the lagoon shall be inspected and tested (as necessary) by a Professional Engineer. Repairs to the
liners shall be made as needed and prior to the resumption of use.
18. The pen-nittee shall actively seek alternate disposal/re-use options for the fill produced at the facility. An
alternate means of disposal, along with a proposed schedule for its implementation, shall be identified
within one (1) year of permit issuance and reported by letter to the Division's Central Office at the Aquifer
Protection Section, 1636 Mail Service Center, Raleigh, NC 27699-1636 and to the Mooresville Regional
Office at the Aquifer Protection Section, 610 East Center Avenue/ Suite 310, Mooresville, NC 28115.
19. The City Water Supply Line shall be re -located to the upper perimeter of the residual fill area within one (1)
year of permit issuance. Any problems with implementing this condition in a timely fashion shall be
reported by letter to the Division's Central Office at the Aquifer Protection Section, 1636 Mail Service
Center, Raleigh, NC 27699-1636 and to the Mooresville Regional Office at the Aquifer Protection Section,
610 East Center Avenue/ Suite 301, Mooresville, NC 28115.
20. Any monitoring deemed necessary by the Division to insure surface and ground water protection will be
established and an acceptable sampling reporting schedule shall be followed.
21. Adequate inspection, maintenance, and cleaning shall be provided by the Permittee to insure proper
operation of the subject facilities. The berm which has been constructed around the residual fill area shall be
maintained so as to keep the fill and/or accumulated rainwater from leaving the fill area.

22. The Permittee or his designee shall inspect the wastewater recycle facilities to prevent malfunctions and
deterioration, operator errors and discharges which may cause or lead to the release of wastes to the
environment, a threat to human health, or a nuisance. The Permittee shall maintain an inspection log or
summary including at least the date and time of inspection, observations made, and any maintenance,
repairs, or corrective actions taken by the Permittee. This log of inspections shall be maintained by the
Permittee for a period of three years from the date of the inspection and shall be made available to the
Division or other permitting authority, upon request.
23. Any duly authorized officer, employee, or representative of the Division may, upon presentation of
credentials, enter and inspect any property, premises or place on or related to the recycle system at any
reasonable time for the purpose of determining compliance with this permit, may inspect or copy any
records that must be maintained under the terms and conditions of this permit, and may obtain samples of
groundwater, surface water, or leachate.
24. The annual administering and compliance fee must be paid by the Permittee within thirty (30) days after
being billed by the Division. Failure to pay the fee accordingly may cause the Division to initiate action to
revoke this permit as specified by 15A NCAC 2H .0205 (c)(4).
25. Failure to abide by the conditions and limitations contained in this permit may subject the Permittee to an
enforcement action by the Division in accordance with North Carolina General Statute 143-215.6A to 143-
215.6C.
26. The issuance of this permit does not exempt the Permittee from complying with any and all statutes, rules,
regulations, or ordinances which may be imposed by other government agencies (local, state, and federal)
which have jurisdiction, including but not limited to applicable river buffer rules in 15A NCAC 2B.0200,
erosion and sedimentation control requirements in 15A NCAC Chapter 4 and under the Division's General
Permit NCGO10000, and any requirements pertaining to wetlands under 15A NCAC 2B .0200 and 2H
.0500.20.
27. A set of approved plans and specifications for the subject project must be retained by the Pennittee for the
life of this project.
28. Noncompliance Notification:
The Permittee shall report by telephone to the Mooresville Regional Office, telephone number (704) 663-
1699, as soon as possible, but in no case more than 24 hours or on the next working day following the
occurrence or first knowledge of the occurrence of any of the following:
a. Any occurrence at the wastewater treatment facility which results in the treatment of significant
amounts of wastes which are abnormal in quantity or characteristic, such as the dumping of the contents
of a basin or tank, the known passage of a slug of hazardous substance through the facility, or any other
unusual circumstances;
b. Any process unit failure, due to known or unknown reasons, that renders the facility incapable of
adequate wastewater treatment, such as mechanical or electrical failures of pumps, aerators,
compressors, etc.;
c. Any failure of a pumping station, sewer line, or treatment facility resulting in a by-pass directly to -
receiving waters without treatment of all or any portion of the influent to such station or facility; or
d. Any time that self -monitoring information indicates that the facility is not in compliance with its permit
limitations.
3

Occurrences outside normal business hours may also be reported to the Division's Emergency Management
personnel at telephone number [phone], or [phone]. Persons reporting such occurrences by
telephone shall also file a written report in letter form within five (5) days following first knowledge of the
occurrence. This report must outline the actions taken or proposed to be taken to ensure that the problem
does not recur.
29. Upon classification of the wastewater treatment and spray irrigation facilities by the Water Pollution
Control System Operators Certification Commission (WPCSOCC), the Permittee shall designate and
employ a certified operator to be in responsible charge (ORC) and one or more certified operator(s) to be
back-up ORC(s) of the facilities in accordance with 15A NCAC 8G .0201. The ORC shall visit the
facilities in accordance with 15A NCAC 8G .0204 or as specified in this permit and shall comply with all
other conditions specified in these rules.
30. The recycle lagoons shall not be located within 100 feet of water supply wells.
31. Within sixty (60) days of permit issuance, the permittee shall submit two original copies of a scaled site
map (scale no greater than 1"=100'); however, special provisions may be granted upon prior approval for
large properties. The map(s) must include the following information:
a. The location and identity of each monitoring well.
b. The location of major components of the waste disposal system.
c. The location of property boundaries within 500 feet of the disposal area(s).
d. The latitude and longitude of the established horizontal control monument.
e. The elevation of the top of the well casing (which shall be known as the "measuring point") relative
to a common datum.
f. The depth of water below the measuring point at the time the measuring point is established.
g. The location of Review and Compliance Boundaries.
h. The date the map is prepared and/or revised.
32. Control monuments shall be installed in such a manner and made of such materials that the monument will
not be destroyed due to activities that may take place on the property. Maps and any supporting
documentation shall be sent to the Aquifer Protection Section's Central Office at 1636 Mail Service Center,
Raleigh, NC 27699-1636, and to the Mooresville Regional Office at the Aquifer Protection Section, 610
East Center Avenue/ Suite 301, Mooresville, NC 28115.
The perntittee is responsible for the geographic accuracy of any map submitted, however produced.
33. Monitor wells MW-1, MW-2, MW-3, and the stream behind the property shall all be sampled every
February, June and October for the following parameters:
Total Dissolved Solids
Sulfates (SO4)
Aluminum
Water Level
pH
Specific Conductivity
Total Suspended Solids
The measurement of water levels must be made prior to sampling for the remaining parameters. The depth
to water in each well shall be measured from the surveyed point on the top of the casing.
The results of the sampling and analysis shall be received on the most -recent version of "Groundwater
Quality Monitoring: Compliance Report Form" (i.e., GW-59 Form) with copies of the laboratory analyses
attached by the Division's Aquifer Protection Section at the following address on or before the last working
day of the month following the sampling month:

NCDENR-DWQ
Information Processing Unit
1617 Mail Service Center
Raleigh, NC 27699-1617
Updated blank reporting forms may be downloaded from the web site for the Division's Aquifer Protection
Section at http://gw.ehnr.state.naus/ or requested from the address listed above.
34. The COMPLIANCE BOUNDARY for the disposal system is specified by regulations in 15A NCAC 2L,
Groundwater Classifications and Standards. The Compliance Boundary for the disposal system individually
permitted on or after December 30, 1983 is established at either 250 feet from the waste disposal area, or 50
feet within the property boundary, whichever is closest to the waste disposal area. An exceedance of
Groundwater Quality Standards at or beyond the Compliance Boundary is subject to remediation action,
according to 15A NCAC 2L .0106(d)(2).
35. The REVIEW BOUNDARY is established around the disposal system midway between the Compliance
Boundary and the perimeter of the waste disposal area. Any exceedance of standards at the Review
Boundary shall require action in accordance with 15A NCAC 2L .0106(d)(1).
36. Any additional groundwater quality monitoring, as deemed necessary by the Division, shall be provided.
37. Permittee, at least six (6) months prior to the expiration of this permit, shall request its extension. Upon
receipt of the request, the Commission will review the adequacy of the facilities described therein, and if
warranted, will extend the permit for such period of time and under such conditions and limitations as it
may deem appropriate.
Permit issued this the 22nd day of December, 2004
NORTH SZAROLINA ENVIRONMENTAL MANAGEMENT COMMISSION
Alan W. Klimek, P.E., Director
Division of Water Quality
By Authority of the Environmental Management Commission
Permit Number WQ0002702

NCDENR MRO Fax:[phone] Mar 21 2005 16:18 P.01
ALCHIEM
IIN.0 er
Saipc and M
�' rpar�te OffisaC. Rockwt�l, IZC 28�38
2 42 BjAe yt„7adrlpinas d TeL 704-279�I908' Fax �04-2794433
Rad Sp NC 29377 pdz}� alohemLeb
Tel. gio-843-z — F= 926-843~s73
V
February 10, 2005
4
Mr. Alan W. YJimek, p.E
Director
Aquifer Protection Section
DIVISION OF WATQ ' L'TY
512 North Salisbury
Street
qtE. Floor .
Raleigh, NC 27604
Dear Mr. Klimek:
We received our peznit No.: WQ0002702. Your letter Qdated e would like to
2do4. NVe did not receive the permits o exam ne and respond to all
of the
ask for an extension of time of 4p , es that Nve will need
changes.- We feel that because of all of the extensive char9
this extra time. Thank you for your help.
Best regards,
ALCHEM, INC.
. tTd . ccT
Wayne Dly e,
Plant ivianager
v11 • �
Mr. Jobe Reuseher
cc: tic Services r' �
• Mid Atlantic
f
A j�370 - /+di m#ZC-13

ALCHEM., INC.
Corporate Office
204.2 Buie Philadelphus Road
Red Springs, NC 28377
Tel. [phone] — Fax [phone]
[e-mail]
March 8, 2005
Mr. Alan W. Klimek, P.E.
Director
Aquifer Protection Section
DIVISION OF WATER QUALITY
512 North Salisbury Street
9`h. Floor
Raleigh, NC 27604
Subject: Permit#: WQ0002702
Dear Mr. Klimek
Sales and Manufacturinq
8135 Red Road
Rockwell, NC 28138
Tel. [phone] -- Fax [phone]
[e-mail]
ME it
MAR
2 2005
MV OF WATER QUALITY
DIRECTOR'S OFFIO"
o CD -Tl
-q�-t
N �n
Z7 p
mm
Q�
CA
We have had a chance to review the proposed pernut. We have questions and objections to the
following parts.
We object to the necessity of extensive data generation for the water sampling in the stream. We
request that this water sampling be done yearly. We plan to block any water from leaving the
sandy area and use this water in our process.
No. 11 — We have no idea what these gauges are and we can visually look at the levels. We see
no real reason to install them. Our standard operating procedures provide for us to leave plenty of
operating room in the storage basins.
Additionally, we do not have any waste on our property. All material is beneficially used.
13. This is extremely difficult and we would propose to use a ph of 2 as a benchmark. If we
add Lime or any other Alkali to the system we cannot use the Aluminum value to put
back into the process. Our rainwater is ph 5.0 or less.
14. Which fill area?
15. We wish to continue using the sand as Alchem, Inc. intends to build on the level land that
has been generated. Alchem, Inc. is using this sand for a beneficial use. There is no
waste. We plan to build a production facility on this built up area.
16. How can one take the ph of a solid?
017 Alchem, Inc. standard operating'procedure when removing sand from the Lagoons is to
stay two feet away from the walls and bottom. Therefore, there is no breech and no way
to examine the liner. It was originally inspected and certified by a professional engineer.
There is no reason to think any change has occurred.
18. Alchem, Inc. is not disposing of anything. Alchem, Inc. is using the sand and using the
rainwater from the berm area.

ALCHEM.,* INC a
Corporate Office Sales and Manufacturing
8135 Red Road
2042 Buie Philadelphus Road Rockwell, NC 28138
Red Springs, NC 28377 Tel. [phone] — Fax [phone]
Tel. [phone] — Fax [phone] [e-mail]
[e-mail]
19. What is the point of moving a city water line? This is process water only. Also, the city
water line has been cut off from the facility and turned off.
29. We do not have a wastewater treatment and spray irrigation facility. Therefore, we feel
there is no need for this provision.
31. We are not familiar with this item and do not understand why we should be required to
do all of this.
I feel that this permit if enacted would put our company out of business. It is economically
detrimental to us and our employees. I would like to point out that in your letter you stated that a
Nov was issued against our facility in January 7, 2001 for violations of State Groundwater
Quality Standards. I had to hire a consultant and spend $ 4,000.00 to prove that the person
issuing this Nov was wrong. After proving that it was wrong I expected to receive a letter of
apology. I also thought that your office might offer to reimburse our company for our money and
time spent on this matter. Instead, I received a letter saying that if we were every caught doing
something wrong we would be severally penalized.
The Nov in May 12, 2003 was caused by unusually large amounts of rain that just over whelmed
us. We have put up a beam that should keep this from every happening again. I look forward to
meeting with you.
Best regards,
ALCHEM, INC.
Randall Andrews,
Sales Manager
vll

William G. Ross Jr., Se
North Carolina Department of Environment and Natural r
Alan W. Klimek, P.L
Division of Watet
AQUIFER PROTECTION SECTIG,
April 22, 2005
CERTIFIED MAIL
RETURN RECEIPT REQUESTED
Mr. Randall Andrews, Sales Manager
ALCHEM, Inc.
2042 Buie Philadelphus Road. .
Red. Springs, NC 28377
and
ALCHEM, Inc.
8135 Red Road
Rockwell, NC 28138
RE: Notice of Regulatory Requirements
Permit #WQ0002702
Recycle System, Rowan County.
Dear Mr. Andrews,
This letter is in response to your letters dated February 10 and March 8, 2005, to Mr. Alan
Klimek, P.E., regarding the subject recycle permit. We are writing to clarify your responsibilities
under this permit and to address the questions that you have raised.
The subject permit is neither draft nor proposed and "extensions" for comments about
issued permits cannot be given. However, the cover letter with your permit provided guidance
concerning your right to request an adjudicatory hearing upon written request within 30 days of
receipt of the issued permit. We understand that the Office of Administrative Hearings did not
receive such a request from you. We are aware that there are a few factual errors regarding the
permit system description. These errors will be corrected and a corrected copy will be sent to you
in the near future.
The following numbered points are in response to your questions and refer to the
numbered permit conditions:
#11 refers to the level of liquid contained In the settling lagoons. This requirement was also in
the previous permit (WQ0002702 item #11) for this facility. It requires a freeboard for all the
lagoons of no less than 24 inches or two feet at anytime. To properly monitor the freeboard of
your lagoons you need to install a gauge in each lagoon to determine the level of the liquid in
the lagoons. This is a standard requirement for permitted systems with lagoons.
#13 refers to the pH of the wash water used to wash the acid from the bauxite. Past problems
of low pH runoff from the bauxite fill area came from residual sulfuric acid left on the_ bauxite
residuals that were removed from the settling lagoons and into the fill area.
Division of Water Quality / Aquifer Protection Section / Mooresville Regional Office Phone: [phone] Fax: [phone]
None Caro�l
610 East Center Street, Suite 301, Mooresville, NC 28115 tut+Ql!
Internet: htto://gw.ehnr state nc us

/Page 2 of 2
April 22, 2005
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#14 refers to the area where you have been putting the bauxite residuals generated by the
recycle system process.
#15 refers to a long range plan for your bauxite residuals. As you know, there have been
problems keeping the bauxite residuals on your site. The Division of Water Quality (Division)
wants to know what you plan to do with your residuals in the future.
#16 refers to the bauxite residuals that you want to remove from the settling lagoons. Past
problems of low pH runoff from the bauxite fill area came from residual sulfuric acid on the
bauxite residuals removed from the settling lagoons. The Division wants to make sure that
any future bauxite residuals are sufficiently "washed/rinsed" of any residual sulfuric acid prior
to sending the material to the fill area.
#17 refers to testing the lagoon liner for integrity. Your standard operating procedures do not
insure that the lagoon liner is still intact and that it has not been compromised during previous
cleanouts.
#18 refers to the fact that the fill area will eventually be filled and ALCHEM will need. an
alternative method of disposal.
#19 refers to the municipal water line that was installed inside the fill area. Due to past issues
with the bauxite residual fill_ area erosion, the Division prefers to avoid future erosion issues by
not allowing a water line in the fill area.
#29 is standard permit. language should the Division. decide to classify your wastewater
system.
#31 refers to the monitoring well testing frequency. The monitoring parameters and frequency
have been deemed necessary by the department.
Should you have any more questions concerning this permit, please call me at (704) 663-
1699'or contact me by email at ellen.huffmanCcDncmail.net.
Sincerely, .
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Ilen Huffman
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Environmental Specialist
Mooresville Regional Office
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Cc: Alan Klimek, P.E. Director
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Kim Colson, Supervisor, LAU
David Goodrich, LAU
Shannon_Thornburg,­LAU _
Central Files
MRO files

Alchem history from MRO files
By Ellen Huffman March 2005
Please note that the author has found files in several sections/divisions due to the different types of permits issued for the
same process i.e., residuals and recycle.
May 9, 1985 — A memorandum concerning a spill/runoff into creek (investigated on Nov. 15, 1984)
from the ALCHEM plant and drinking water well contamination. All stream samples showed high
concentrations of Al, Fe, Na, and Zn.
May 14, 1986 — DEM Groundwater section memo from Len Bramble to Bill Crawford. Subject _
application of new permit APN 0076633 and GW 8680. "We have received copy of the above
referenced application which was sent to your regional office for comment on or about May 12, 1986"...
Dec. 30, 1985 — WQ MRO complaint investigation report summing up issues from multiple spills
throughout the last 12 months since the Nov. 15, 1984 investigation.
Dec. 6, 1984 — Complaint from City of Rockwell of white color in creek.
Jan. 2 & 7, 1985 — WQ samples the stream. Samples come back with extremely high
concentrations of Al, Fe, Na, and Zn. (data in file)
Feb. 28, 1985 — stream samples still show high levels of Al, Fe, & Na.
March 26, 1985 — WQ received another complaint from a resident in the ALCHEM area.
April 1, 1985 - Soil samples showed high levels of Al, Fe, & Na. Well samples taken at the
same time were high in Al & Na. Down stream samples showed high concentrations of Al, Fe,
Na, and Zn. Upstream samples did not show high concentrations of Al, Fe, Na, and Zn. Also
discovered the path of ninoff from ALCHEM property to the stream.
May 9, 1985 — A memorandum from Monty Payne & Jesse Wells to Bill Jeter concerning
multiple complaints from neighbors of ALCHEM.
June 11, 1985 — stream samples once again show high levels of Al, Fe, & Na.
Sept. 9, 1985 — During a meeting with WQ and ALCHEM, it was determined that the ponds need
to be emptied and contaminated soil be removed or neutralized. If the lagoon was to be used it
must be lined. They also must submit an application for a non -discharge permit.
Jan. 3, 1986 — WQ staff report (Thurmon Home) for ALCHEM (APN 005232) The facility has 2
existing (un-permitted) recycle lagoons. DEM & DHR have both conducted investigations regarding
well and groundwater contamination. ALCHEM has had to replace one off site drinking water well,
cleaned areas affected be ntn-off, and removing all liquid from the lagoons with the intention of
removing the lagoons (excavating and removing contaminated soils). ALCHEM proposes to constrict a
new recycle system. The new process will involve mixing bauxite, sulfuric acid, and water in a reactor.
The waste residuals (pH between 2.0 and 2.5) will be pumped to the proposed non -discharge recycle

wastewater treatment facility. The residuals from the facility will be pumped to the retention pond
where LIME will be added to raise the pH to 6 s.u. The applicant proposes to dispose of the
residuals in the county landfill. The applicant has failed to submit acceptable detailed engineering
plans and specs as requested.
Recommendations: Considering the past history of this facility, it is imperative that a thorough
evaluation be made prior to permit issuance...
Jan. 7, 1986 — a meeting in Rockwell between DEM & ALCHEM, concerning a need for a pen -nit for
the ALCHEM facility.
Jan. 8, 1986 — DEM WQ MRO memorandum — WQ reviews an application and recommends that
ALCHEM do a thorough investigation of the present subsurface conditions prior to issuance of the
permit.
Jan. 8, 1986 — MRO GW memo from Jesse Wells to Len Bramble. GW recommends that ALCHEM do
a thorough investigation of the present subsurface conditions including directional flow and gradient of
the groundwater, lithologic description and determination of the hydraulic conductivity of the soil, and
sampling of the saturated zone as a requirement before issuance of the permit.
Jan. 30, 1986 - A letter from DENR & Community Development, regarding insufficient data to process
the permit application.
April 10, 1986 letter from DENR to ALCHEM regarding Operation of an un-permitted non -discharge
Waste Treatment System.
May 5, 1986 ALCHEM submits a permit application for a tank spill containment area & a sand filter.
June 17, 1986 — letter from ALCHEM to DENR Addendum to application APN007633.
Sept. 12, 1986 — DEM GW — memo. Sub. Permit app. Review, ALCHEM, GW86080. Recommends
issuance of permit with 2 conditions. 1- the sand filter bed must be lined with a geotech fiber and two
layers of 6 mil. (12 mil. total) synthetic liner. 2- any groundwater monitoring deemed necessary by the
department.
September 22, 1986 — A note to file regarding a letter from ALCHEM to Thurmond Horne evaluating a
vacuum filter. Note from staff suggests that the dept. hold the permit application for four weeks before
returning the application to ALCHEM as incomplete.
(what happened to 1987?)
Jan. 19, 1988 — letter from DENR to ALCHEM —Subject: Project Return APN007633. In reference to
application received May 7, 1986.
Feb. 1988 — letter from ALCHEM to DENR. " I did not realize that our non -discharge Permit was being
held. We decided to put in a sand filter enclosed in a tank..."
2

July 30, 1989 — A letter from DENR & Comm. Dev. regarding information needed for a review of
ALCHEM Ind. Recycle (WQ0001987) permit to be completed.
October 2, 1989 — from DENR to ALCHEM. Subject: Project Return (WQ0001987).
October 11, 1989 — A staff report from MRO recommends that the ERG and groundwater provide
comments before permit issuance and possible cake sludge storage issues. (Allen Hardee, MRO staff).
January 10, 1990 - DENR issues pen -nit WQ0002702 after review of Nov. 17,1989 (penult) application.
(can not find copy of application in file for this date)
May 4, 1990 — a letter from ALCHEM to DENR (Carolyn McCaskill) referencing permit WQ0002702
and regarding removal of a partition between two lagoons.
May 21, 1990 A letter from ALCHEM to MR. Rex Gleason (MRO) referencing permit WQ0002702 and
regarding installed facilities ready for inspection.
October 25, 1990 — A Notice of Violation regarding a discharge of alum into the creek.
Oct. 8, 1992 — ALCHEM submits a pen -nit application for a recycle system.
Oct. 19, 1992 — application from ALCHEM received by DEHNR(no application found in MRO files).
March 11, 1993 — GW memo regarding modification of permit WQ0002702 (concerning) proposed
sludge storage lagoons. GW recommends (two) monitoring wells.
March 23, 1993 — renewal application from ALCHEM received by DEHNR (no application found in
MRO files).
April 8, 1993 - amended permit is issued to ALCHEM.
April 20, 1993 — a letter from ALCHEM to DEHNR regarding amendment of permit WQ0002702
regarding monitoring well requirements and construction of only two lagoons rather than the original
five. Sees no need for groundwater monitoring.
April 20, 1993 — a letter from DEHNR to ALCHEM was conveying groundwater -monitoring guidance.
June 9, 1993 — memo from Don Saffrit, P.E., Asst. Chief for Teck. Support to Ted Bush Asst. Chief,
groundwater section regarding a petition (ALCHEM monitoring wells) with the Office of
Administrative hearings.
June 22, 1993 — A memo from MRO GW (David Eudy) to Jack Floyd regarding adjudication request -
concerns with sulfuric acid in large quantities and past history of non-compliance, there is ample
justification for groundwater monitoring requirements.

June 25, 1993 — A memo from Central GW to MRO GW, regarding adjudication request. "The
groundwater section stands firm with its decision to recommend groundwater monitoring to remain a
part of the permit".
June 30, 1993 — A letter from DEHNR to ALCHEM, regarding groundwater monitoring to stay in the
amended pen -nit.
Sept. 21, 1993 — A letter from ALCHEM to NC EMC asking permission to drop VOC testing
requirements from the permit.
April 6, 1994 — memo from MRO GW to DEM GQ, acknowledging receipt of a permit renewal
application for ALCHEM WQ0002702.
April 27, 1994 — memo to DEM GW Compliance Group from Barbara Christian, MRO GW Supervisor
regarding a site inspection (for a permit renewal) on April 26, 1994 that raised several concerns.
• Raw aluminum ore storage issues
• Monitoring reports indicate that monitoring wells were not purged prior to sampling
• Lack of chemical analyses of the lagoon wastewater
• Inaccurate topographic site map
May 23, 1994 — A memo from Cindy Boyles to Carolyn McCaskill, regarding ALCHEM permit renewal
(permit WQ0002702) reads "run-off into a drainage way still poses a problem to the residents directly
below grade".
June 27, 1994 — (renewed) permit WQ0002702 issued.
July 11, 1994 — A letter from DEHNR to ALCHEM, regarding (groundwater) monitoring guidance.
October 30, 1995 — A certified letter to ALCHEM from MRO GW regarding proper purging of
monitoring wells prior to sampling (permit WQ0002702).
October 20, 1998 — ALCHEM submits for a permit renewal and modification (permit WQ0002702).
Nov. 10, 1998 — A staff report by G.T. Chen includes very little comment. "pending final review and
approval by the SERG and the Groundwater Section, it is recommended that the subject permit by
renewed and modified to allow sand by-product to be mixed with clay.
December 8, 1998 — Memo from Peggy Findley, MRO, to Dr. Ken Rudo. Request for Health Rick
Evaluation for the public water supply well on the ALCHEM premises.
December 30, 1998 — a memo from Brian Wootton (MRO) to Kim Colson WQS, regarding groundwater
monitoring changes to the ALCHEM pennit WQ0002702. Existing monitoring wells MW-1 & MW-2
shall be sampled Feb. & July for water level, aluminum, and pH.

Jan. 21, 1999 — renewal permit WQ0002702 (industrial recycle bauxite process) is issued to ALCHEM.
*****March 1, 1999 - Permit WQ00016338 is issued to ALCHEM for a Bauxite residuals reuse
Program "... for the operation of a bauxite residuals reuse program (as structural fill!!!) on ALCHEM
Inc.'s property at 8135 Red Road, Rockwell, NC..."
April 25, 2000 — A letter from DEHNR, MRO, to ALCHEM, regarding (permit WQ0002702) field
analysis data (section 4 of the groundwater G-59 form).
Oct. 11, 2001 — A letter from Groundwater MRO, to ALCHEM,. regarding an upward trend of aluminum
in MW-1 and MW-2 (permit WQ0002702). Letter asks from ALCHEM to re -sample within 60 days,
including the drinking water supply well that serves the office.
October 17, 2001 — A letter from IAC (Ind. & Agri. Chem. Inc. -parent company of ALCHEM)
regarding the Oct. 11, 2001 letter to ALCHEM...."Alchem manufactures aluminum sulfate. Both cation
and anion are very water-soluable. We have noticed the increase in aluminum values but with no
corresponding sulfate increase. Naturally, we are concerned. However, is it possible that the aluminum
is -coming, from other sources since there is no increase in the sulfate anion? We are going to follow
your instructions and will be in touch with you".
Jan. 7, 2002 - A Notice of Violation letter, groundwater quality violations.
March 15, 2002 — Notice of Violation for WQ0016338 concerning monitoring reports for sect. III, part
3 & 4.
April 12, 2002 - A rescission of NOV letter from Peggy Finley, MRO, to ALCHEM.
April 29, 2003 — complaint received by MRO, from a downstream neighbor of large amounts of white
substance being washed down the creek from ALCHEM property. Wes Bell, MRO investigated. Spent
Bauxite is found to be over 2 feet think in parts of the stream.
April 30 and May 8 — investigations had determined that the nun -off from ALCHEM had impacted up to
500 linear feet of a tributary to Second Creek.
May 12, 2003 — NOV/NRE for permit WQ0016338 regarding the above complaint investigation.
May 14, 2003 — a letter from DENR MRO to ALCHEM, regarding the NOV. The NOV should have
been issued against pen -nit WQ0016338.
May 23, 2003 — The TARA Group is hired to repair erosion control issues at ALCHEM.
May 28, 2003 — A letter from ALCHEM to Rex Gleason, supervisor WQS, MRO. This letter is in
response to the above mentioned NOV/NRE. ALCHEM sends an outline of a cleanup plan.
August 18, 2003 — (WQ0016338) a penalty was assessed in the amount of $5,998.28 for the May 12,
2003 NOV.

August 19, 2003 — A NOV (WQ0016338) was issued for failure to incorporate remedial actions/illegal
discharge to surface water.
Feb. 24, 2004 — ALCHEM submits the annual report for WQ0016338. ALCHEM reports "for the year
2003, we did not accumulate enough silica residual to land apply".
July 29, 2004 — ALCHEM on payment plan with AGO for the May 12, 2003 NOV, per Janet Leach.
Aug. 13, 2004 — A letter from DEHNR to ALCHEM, regarding withdrawal of permit application_
package for WQ0016338.
Sept. 29, 2004 - MRO receives a request to renew WQ0002702.
Sept. 20, 2004. — MRO receives a request to renew WQ0016338.
Oct. 25, 2004 — A staff report by Ellen Huffman, MRO, for both permit renewals, requests that due to
past confusion between the two permits that they be combined for better monitoring of a site with many
compliance issues in the past. There were also many other changes requested.
December 28, 2004 — A renewal permit for WQ0002702 (recycle) is issued with the many changes (as
requested by MRO, but the other permit (WQ0016338, residuals) is not issued. It is currently being held
in Central Offices until the confusion is cleared up.
Dec. 30, 2004 & Jan.5, 2005 — follow-up investigation by Wes Bell, MRO, revealed stormwater run-off
issues with low pH continuing to impact the stream.
Jan. 12, 2005 — NOV/NRE issued due to continued problems found during the investigation on Dec. 30,
2004 and Jan. 5, 2005.
Jan. 27, 2005 — A letter from ALCHEM to Rex Gleason, MRO, regarding further cleanup of stream.
Still states that their pH readings are not as low as the readings that Wes Bell had gotten.
Feb. 9, 2005 - A letter from ALCHEM to Rex Gleason, MRO, regarding soils sampling, liming affected
areas, hiring a tree expert, and repairing silt fences.
Feb. 10, 2005 — A letter from ALCHEM to Div. Of WQ, Central Office, regarding the receipt of the new
permit WQ0002702. The permit was dated Dec. 28, 2004 but ALCHEM says that they did not receive it
until Jan. 28, 2005. This letter asks for an extension of 90 days to review the permit. To the writer's
knowledge, this letter has not been responded to by Central Office.
March 8, 2005 — A letter from ALCHEM to Div. Of WQ, Central Office, regarding many objections to
the permit conditions of WQ0002702. To the writer's knowledge, this letter has not been responded to
by Central Office.

March 10, 2005 — A letter from ALCHEM to Non-Dis. Compliance conveys the annual report for
WQ0016338. This letter states that they did not accumulate enough silica residual to land apply, just like
the 2003 annual report. The writer recalls that ALCHEM stated that they plan to clean out a lagoon (or
two) in the spring which is why the staff report asked for extra pH testing on excavated materials and an
inspection of the lagoon liner.

t Z0y C_( u' PRI 2
A[-['UttIYYY (M-NttRAL
State of North Carolina
Dopartment of .)usticc-
P, O. Box 629
RALEIGH nn
27602•0ri24 DATA:: ` V
FACSIMILE, TRANSMITTAL SHEET
i
FROM: d— - L t,5�t'-L
PHONE NO: [phone]
FAX NO: [phone]
SUBJECT:__0(",Cty-)
NO. OF PAGES 1N
COMMENTS:
FAX NO:
UDING TRANSMITTAL SHEET C�
CONFIDENTIALITY NOTE.: The information contained in this facsimile is legally privileged and confidential and is
intended only for the use of the individual or entity named above. If the reader of this message is not the intended recipient, you
are hereby notified that any dissemination, distribution or copy of this infotmation is strictly prohibited, If you have received this
facsimile in error, please immediately notify us by telephone an return the original message to us at the address above by U.S.
postal service, Thank you.
TO 'd ZV: TT S0, T idd 99Z9-9TZ-6T6: XPJ NOI103S QNd-1 '8 d31dm

STATE OF NORTH CAROLINA FILED IN THE OFFICE OF
ADMINISTRATIVE HEARINGS
COUNTY OF ROWAN, r iGOq MAR _ Z 3: O 03 EHR 1587
OFFICE OF
ALCHEM, INC., WAYNE D. DRYE,ADMI0ISTRArW
HEARO;GS
Petitioner, )
v. )
SETTLEMENT AGREEMFNT AND
NORTH CAROLINA DEPARTMENT Of WITHDRAWAL OF PETITION
ENVIRONMENT AND NATURAL )
RESOURCES, DIVISION OF WATER )
QUALITY, )
Respondent. )
The North Carolina Department of Environment and Natural Resources ("DENR"),
• Respondent, and Petitioner, Alchem, Inc., 'Wayne D. Drye ("Petitioner"), hereby enter into this
Settlement Agreement ("Agreement") in order to amicably resolve matters in controversy as they
relate to the civil penalty assessment. This matter arose out of the assessment of civil penalties
and costs totaling five thousand nine hundred ninety-eight dollars and twenty-eight cents
($5,998.28, which includes three hundred ftinety-eight dollars and twenty-eight cents ($398.28)
in enforcement costs), imposed upon. Petitioner on August 18, 2003 for alleged violations of
North Carolina General Statutes § 143-215.1 er seq and Non -Discharge Permit WQ0016338.
DENR and the Petitioner have reached the following settlement agreement in this matter:
I. Petitioner will adhere to the following conditions:
a. Petitioner will submit a plan or schedule to remove sand and
other materials &•om a tributary to Second Creek and the
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Iii
riparian areas of the two affected private properties adjacent
to A.lchem, Inc.;
b. Petitioner will submit a plan, or schedule for removal of sand
and other materials deposited by Petitioner's facility to the
Mooresville Regional Office of the Division of Water Quality
within thirty (30) days of execution of tlus agreement.;
C. Petitioner shall remove sand and other materials from the
creek, creek - bank, and the areas where the deposits exist in
the forested area adjacent to the creek located on property
ownedbyAlchem, Inc, andthetwo affected privatc properties
adjacent to Alchem, Inc, in accordance with the plan or
schedule submitted.;
d. Petitioner shall submit written notice of completion of
removal of sand and other materials to the Mooresville
Regional Office of the Division of Water Quality within five
(5) days of said completion.
2. The Petitioner will pay a total of four thousand eight hundred seventy-eight
dollars and twenty-eight cents ($4,878.28 ("Settlement Amount"), calculated as follows: Total
Penalty S5,600.00 - 20% of penalty = $4,480.00 (80% of penalty) + investigative costs of
3$ 98.28 = $4,878.28) to DENR for settlement in the manner hereinafter described. The
Settlemcot Amount shall be made in the following manner: The Settlement Amount shall be
made in twenty-four (24) monthly payments. The first payment shall be due and payable on
-2-
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•
March 1, 2004 in the amount of two hundred three dollars and thirty cents ($203.30)_ Each
payment thereafter shall be due and payable on the P day of each month consecutively in
the amount of two hundred three dollars and twenty-six cents ($203.26) totaling: $703.30 +
($203.26 x 23) $4,674.98 = $4,878.28. The last payrhent shall be due and payable on or before
February 1, 2006.
3. The payments shall be by check made payable to the North Carolina Department
of Environment and Natural Resources (or to "DENR") at the following address:
Stonnie D. Forte, Esq.
Attorney General's Office
Environmental Protection Division
Post Office Rox 629
Raleigh, NC 27602-062-9
4_ The breach`of any condition of Paragraphs one (1), or two (2) by Petitioner will
render due and payable the entire amount of the civil penalty assessment, including investigative
costs i.e., five thousand nine hundred ninety-eight dollars and twenty-eight cents ($5,998.28).
5. Petitioner and DENR expressly stipulate and acknowledge that, by entering into
this Agreement, Petitioner neither admits nor denies the allegations contained in the Findings and
Decisions and Assessment of Civil penalties. However, upon a breach of paragraph one (1) or
two (2) of this Agreement, by Petitioner, the sole issue in any action by DENR is to collect the
Entire amount of the civil penalty assessment including investigative costs i.e., five thousand
nine hundred ninety-eight dollars and twenty-eight cents ($5,998.28)'iri accordance with the
terms of paragraph four (4) above and will be limited to the Petitioner's compliance with the
terms of this Agreement.
-3-
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Li
5. DENR agrees to accept payments totaling four thousand eight hundred seventy-
eight dollars and twenty-eight cents ($4,87$.28), in complete satisfaction of the civil penalty
assessment subject to the terms of this Agreement.
6. Nothing in this Agreement shall restrict any right of DENR to take any
enforcemcnt action against Petitioner for any future violations; i.e., violations occurring after
May 8, 2003.
7. The DENR and Petitioner agree that, for purposes of any future bankruptcy
proceeding, this Agreement is not intended as, nor shall it be deemed to constitute, a novation of
any claims asserted by DENR against Petitioner. Petitioner further agrees that all sums payable
to DENR pursuant to this Agreement are nondischargeable in bankruptcy under 11 U.S.C. § 523.
Nothing in this Agreement releases any nondischargeability claims that may be asserted by
DENR in any bankruptcy proceeding, and nothing in this Agreement shall be deemed a waiver of
the DENR 's right to rely on the nature of any claim or debt released in this Agreement to show
that the claim or debt is nondischargeable.
S. This Agreement shall be binding upon the parties and is entered into knowingly,
intelligently, and voluntarily.
-4-
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WITHDRAWAL OF PETITION
9. Entry of this Agreement serve as Petitioner's Withdrawal of its Petition for
Contested Case Hearing Without Prejudice in these matters. The parties agree this matter is
concluded and that DO further proceedings are needed or required to resolve the contested case.
This the _ day of February 2004.
FOR THE DIVISION OF WATER
QUALITY
ate.
C�
Alan Klimek, Director of
Water Quality
Date:_
D. Rex Gleason; Mooresville
Regional Supervisor
ROY COOPER
Attorney General
By: )I
�o�—eD. Forte
Associate Attorney General
N. C. Department of Justice
Environmental Division
9001 Mail Service Center
Raleigh, NC 27699-9001
[phone]
[phone]/Fax
PETITIONER:
Alehem�Incc , Wayne D. Drye
Date:
n�-
�.
Randall F. Andrews, Consultant
Alchem, Inc. ,
Date: �J �` r 1 7,00
-5-
E:
90'd 2b:TI SO, T jdd 99Z9-9Tz-6T6:X2-A NOI103S QNti-1 '8 2131dm

�-
0�4 PG
Michael F. Easley, GTemor
7
r William G. Ross, Jr.,Secretary
"I North Carolina Department of Environment and Natural Resources
Alan W. Klimek, P.E., Director
Division of Water Quality
May. 12, 2003
CERTIFIED MAIL
RETURN RECEIPT REQUESTED
Mr. Wayne Drye, Plant Manager
ALCHEM, Inc.
8135 Red Road
Rockwell, North Carolina 28138
Subject: Notice of Violation/Notice of
Recommendation for Enforcement
ALCHEM, Inc.
Illegal Discharge/Permit Violations/
Surface Water Quality Standard Violations
Permit No. WQ0002702
Rowan County, N.C.
Dear Mr. Drye:
Chapter 143, Article 21 of the North Carolina General Statutes (NCGS) authorizes and directs the
Environmental Management Commission of this Department to protect and preserve the water resources of
the State. The Division of Water Quality (DWQ) has the delegated authority to enforce adopted pollution
control rules and regulations.
Enclosed please find a copy of a Complaint Investigation Report for the investigation conducted
on April 30, 2003 by Mr. Wes Bell of this Office. As a result of this investigation, the following
conditions were found in violation of North Carolina General Statute (NCGS) 143-215.1, 15A North
Carolina Administrative Code (NCAC) 2B .0211 (2), (3)(c) and (g), and Non -Discharge Permit No.
WQ0002702:
The facility's storage area for its fill material had discharged into a
drainage/wooded area and an intermittent stream. The intermittent stream
was observed covered (up to 24 inches) with the fill material for a total
distance of approximately 400=500 feet (upstream and downstream of
Medium Road). The upstream pH value was 6.04 s.u. and the
downstream pH values (following the discharges) ranged from 4.15 s.u. to
4.22 s.u. The facility impaired/removed the suitability of the stream for
aquatic life and propagation and maintenance of biological integrity,
wildlife, and secondary recreation. The permittee failed to 1) properly
operate and maintain the facility as a non -discharge facility, 2) cease reuse
operation once nuisance conditions existed, 3) provide adequate
provisions to prevent surface runoff from conveying pollutants into
surface waters, and 4) notify this office of the residuals release into the
receiving stream.
Mooresville Regional Office, 919 North Main Street, Mooresville, NC 28115
NUDEN
'HONE [phone] Customer Service
=AX (7D4) 663-5040 1 800 623-7748

Mr. Wayne Drye
NO V/NRE
Page Two
Please be advised that this report is being issued as a Notice of Violation (NOV) and Notice of
Recommendation for Enforcement for the violations of NCGS 143-215.1, 15A NCAC 213 .0211 (2), (3)(c)
and (g), and Non -Discharge Permit No. WQ0002702. Be advised that NCGS 143-215.6A provides for a
civil penalty assessment of not more that twenty-five thousand dollars ($25,000.00), or twenty-five
thousand dollars ($25,000.00) per day when the violation is of a continuing nature, against any person who
fails to abide by the conditions of the permit and who fails to apply for or to secure a permit required by
NCGS 143-215.1. Penalties may also be assessed for any damage to the surface waters of the State that
may result from the unpermitted discharge.
It is requested that you respond, in writing, within twenty days following receipt of this Notice.
The response should address the measures taken to collect and remove the fill material, and efforts to
restore all affected areas. Measures taken to prevent future discharges should also be discussed.
This letter is also to advise you that this Office is considering sending a recommendation for
enforcement action to the Director of the Division of Water Quality for the discharge of the fill material
into a stream, water quality stream standard violations (pH and best usage), and the facility's failure to
abide by the conditions of Permit No. WQ0002702. If you have an explanation for the violations that you
wish to present, please include same in the requested response. Your explanation will be reviewed and if
an enforcement action is still deemed appropriate, your explanation will be forwarded to the Director along
with the enforcement package for his consideration.
To comply with the regulations, it will be necessary to collect and remove all of the fill material (in
the stream and drainage/wooded areas) and restore all affected areas as nearly as may be to the conditions
existing prior to the discharge.
Should you have questions, please do not hesitate to contact Mr. Bell or me at [phone].
Attachments
cc: Rowan County Health Department
MR
Sincerely,
D. Rex Gleason, P.E.
Water Quality Regional Supervisor
s:: a

f ,
NORTH CAROLINA DEPARTMENT OF ENVIRONMENT
AND NATURAL RESOURCES .
DIVISION OF WATER QUALITY
WATER QUALITY SECTION
919 NORTH MAIN STREET
MOORESVILLE, NORTH CAROLINA 28115
REPORT OF: Complaint Investigation
DATE OF INVESTIGATION: April 30, 2003
INVESTIGATED BY: Wes Bell\~ TIME SPENT: 2.0 hours
PLACE VISITED: ALCHEM, Inc. Business Site
PHYSICAL LOCATION: Rockwell, Rowan County
MAILING ADDRESS: 8135 Red Road
Rockwell, N.C. 28138
TELEPHONE #: [phone]
RIVER BASIN: Yadkin -Pee Dee
PERSONS CONTACTED: Mr. Wayne Drye, Plant Manager, On -site Employees
REASON FOR VISIT: Investigation of complaint regarding discharge of a white substance into
a drainage/wooded area and creek
COPIES TO: Rowan County Health Department
On April 29, 2003, this office received a complaint that a white substance from
ALCHEM, Inc. had been discharged into a drainage/wooded area and intermittent stream in
Rockwell, Rowan County. The complaint was investigated by Wes Bell of this office on April
30, 2003.
Mr. Bell arrived at a residence below ALCHEM, Inc. adjacent to Medium Road. Mr. Bell
observed large accumulations of a white, granular material (sand appearance) throughout the
drainage/wooded area. In addition, this white substance had completely covered the bottom of an
intermittent stream (unnamed tributary to Second Creek - Class C Stream) for approximately
200-300 feet (upstream of Medium Road). The intermittent stream was observed free -flowing on
top of the white substance at the time of the investigation.
Mr. Bell traced the white material (upstream) throughout the drainage/wooded area and
intermittent stream to a large storage area containing this white material. The material appeared
to be used as a fill material. This fill material appeared to have covered an area between three to
five acres. The fill area had been severely eroded allowing the material to flow across a sediment
basin and silt fence into the drainage/wooded area. The white substance (combined with a clay)
had eroded/discharged into the intermittent stream in several locations. The permittee did not
appear to have incorporated appropriate erosion control measures to contain the material.

Complaint Investigation
Page Two
Mr. Bell met with the ALCHEM, Inc. on -site employees. Mr. Bell escorted one of the
employees to the affected drainage/wooded area and intermittent stream. While at the facility,
Mr. Bell observed two lagoons adjacent to the fill material. The employee indicated that the two
lagoons were part of a wastewater reuse system. A third lagoon on -site was utilized as a backup.
Bauxite (aluminum ore) is transported to ALCHEM via railcart. The bauxite is mixed
with silica sand (80% bauxite and 20% silica sand), and made into a slurry via water additions.
Sulfuric acid is added to the bauxite slurry (to create the finished product - aluminum sulfate) and
a polymer is then added to aide in settling/removal of the sand. The sand is removed and rinsed
three times with water (to remove the aluminum) prior to discharging the sand/water mixture into
the lagoon system. The sand is removed from the lagoons and used as a fill material. The water
is also reused in the process. Mr. Bell was informed by the on -site employee that the facility
monitors two on -site groundwater monitoring wells as well as the fill material. Mr. Bell
reviewed the facility's permit requirements on -site and at this office.
Mr. Bell determined that ALCHEM, Inc. was issued Permit No. WQ0002702 by the
Division for the on -site reuse of silica residuals from bauxite digestion as a fill material. The
Permit became effective on January 21, 1999 and expires on December 21, 2004. The Permit
authorizes the usage of 3,000 tons per year of residual to be used as a fill material on the
company's property from the bauxite residuals reuse program. The facility failed to comply with
the conditions of their permit. Specifically, the facility failed to 1) properly operate and maintain
the facility as a non -discharge facility, 2) cease reuse operation once nuisance conditions existed,
3) provide adequate provisions to prevent surface runoff from conveying pollutants into surface
waters, and 4) notify this office of the residuals release into receiving waters. The accumulation
of the fill material in the stream impacted/removed the suitability of the waters for aquatic life
and maintenance of biological integrity, wildlife, secondary recreation, and agriculture, which is
a violation of 15A North Carolina Administrative Code (NCAC) 2B .0211 (2) and (3)(c).
Messrs. Bell and Alan Johnson (of this office) revisited the drainage/wooded areas and
intermittent stream upstream and downstream of Medium Road on 5/8/03. Mr. Bell sampled the
intermittent stream for pH above and below the impacted areas throughout the intermittent
stream. The upstream pH value was 6.04 s.u. and the downstream pH values ranged from 4.15 to
4.22 s.u. A pH value of 4.22 s.u. was recorded at the most distant downstream sampling location
(100-150 feet downstream of Medium Road). The facility's discharge of the fill material into the
stream caused a surface water quality pH standard violation. The standard for Class C Waters is
between the 6-9 s.u. (Reference: 15A NCAC 2B .0211(3)(g). Large accumulations of the fill
material were also observed throughout the drainage/wooded area at this downstream location.
Mr. Bell analyzed the pH of the accumulated water in the sediment basin adjacent to the fill
material. The pH value was 3.86 s.u. The sediment basin was discharging into the intermittent
stream at the time of this investigation. Mr. Johnson's measurements of the accumulations in the
stream channel showed a depth of up to twenty-four inches. Mr. Johnson also measured
accumulations up to twelve inches throughout the drainage/wooded areas (upstream and
downstream of Medium Road).

Complaint Investigation
Page Three
Mr. Wayne Drye, Plant Manager, contacted Mr. Bell via telephone regarding the
investigation. Mr. Bell informed Mr. Drye of the findings and environmental regulations
relevant to the investigation. In addition, Mr. Bell informed Mr. Drye that the Division of Land
Resources' Land Quality Section would be notified regarding the inadequate erosion and control
measures. Mr. Drye and his staff were very cooperative and helpful throughout this
investigation. A follow-up investigation by this office may be necessary to verify adequate
remedial actions.

^ � i.
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. r
~ •Corporate Office
2042 Buie Philadelphus Road
Red Springs, NC 28377
Tel. gio-843-2121 — Fax gio-843-5789
[e-mail]
May 28, 2003
±A.L�i-lr-jld'1'
Mr. D. Rex Gleason
Water Quality Regional Supervisor
NCDENR
919 North Main Street
Mooresville, NC 28115
Dear Mr. Gleason:
11V �Sl
�a���
8135 Red Road
Rockwell, NC 28138
Tel. [phone]o8 — Fax [phone]
[e-mail]
ECEIAVE r
MAY ? 2003
NC DEPT to cetVikt NMErv,
AwmATURAL RESOURCES
MOORESVILLE REG10NALOFFICE
Thank you for your letter of May 12, 2003. I am very sorry about this problem.
Please rest assured that we do not take our responsibilities in this matter lightly.
We certainly want to do everything that we can humanly do to arrange for a long-
term solution. I would like to outline for you as best as I can in words what our
plan will be. I am certain that you are aware that we had such a large amount of
rain this spring that we were frankly overwhelmed by all of the water coming
onto our property. We never expected that. such large volumes of water intrusion
would occur. Please allow me to outline the following that we can do to solve this
problem.
1. We will remove the pipe embedded in the sand area.
2. We will divert all water from Red Road and West of the train tracks
around the sand.
3. We will establish a berm around the reuse sand. We will use
recommended erosion control measures on the berm to avoid to the
greatest extent practical erosion from the berm.
4. We will establish a storm water holding pond. All storm water that has
come in contact with the reuse sand pile will be channeled to the
holding pond and pumped back up to our process water tanks.
5. We will keep an inspection log with monthly inspections to make
certain that the holding pond has not lost any storm water. We will
inspect the stream to make certain that no run off from our facility has
occurred.
6. We will clean the small stream and do our very best to restore it to its
original condition.
7. We have contracted with a local surveying and engineering company to
help us to determine how large the holding basin needs to be.

r6rateOffice ALCHEM, INU
Sales and Manufacturing=8135 Red Road
�04Philadelphus Road Rockwell, NC 28138
Red Springs, NC 28377 Tel. [phone] Fa 704 279-84t8
Tel. [phone]— Fax 9io-843-5789 [e-mail]
[e-mail]
8. We plan to inspect the holding pond to make certain that it has not
filled with sand. If there is any sand we will remove it. We will inspect
monthly.
q. We intend to contract with a construction company to construct this
project. Please see enclosed contract.
I hope that this information is satisfactory to you. Please let me know if you have
any questions comments or concerns.
Best regards,
ALCHEM, INC.
iU w
Wayne Drye,
Vice President
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�' V dtNiq,�
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( N s
The TARA GROUP OF LUMBERTON, INC.
20,42 Buie Philadelphus Rd Red Springs, NC 28377
NC# 41562 -- SC# 98350
Equipment vards — Hwy 72 West, Lumberton, NC
Red Road, Rockwell, NC
Telephone 910-843=4497 N Facsimile 910-843-5789
lblr. D.. Rex Gleason, P.E., Water Quality Regional Supervisor
North Carolina .Department of National Resources
919 North Main Street
Mooresville, NC 28115
RE: Notice of .Violation for Alchem, Inc.
8135 Red Road
Rockwell, NC 28138
Permit No. wGicc, 33`
Rowan County, NC .
Dear Mr. Gleason:
Please be advised that Alchem, Inc has hired The TARA Group of Lumberton; Inc. The
proposal for this project was signed Monday May 12, 2003. -TARA Group will be providing
design build grading and erosion control repairs for our client at the above reference
address. TARA Group has subcontracted with Johnny Nobles & Associates to provide all
surveying and engineering work that will take place on this project site. We will be
forwarding the .erosion control plan to you for approval by you and DENR within the next 15
days.
We have advised our client that we will be working very closely with them within the next
week to install temporary and necessary erosion control measures so this will reduce the
Possibility of any further violation in regards to this. matter. We look forward to working
with. you and DENR in getting this matter resolved and getting our client in' compliance. Our
company maintains an excellent working relationship with the Fayetteville regional office of
DENR.
We'will be contacting you shortly in regards to this matter. If you have any questions prior
to us contacting you please feel free to contact us to .discuss this matter. Again, we look
forward to solving the problems at hand and putting our client back in total compliance with
your agency along with. DENR.
WOMAN BUSINESS ENTERPRISE!
Heavy Highway Utilities - Sewer Plants Mining

r Q 6[Niq,a` 111G 1Luui tTl\vvi vi i+vi.��.�,.=— �- •� —. •. .
2042 Buie Philadelphus Rd Red Springs, NC 28377
NC# 41562 — SC# 98350
C a Equipment vards — Hwy 72 West, Lumberton, NC
c
s « Red Road, Rockwell, NC
cR Telephone [phone] N Facsimile 910-843-5789
May 28, 2003
CONTRACT. BETWEEN
THE TARA GROUP OF LUMBERTON AND ALCHEhI, INC.
Job description: Provide all planning, design, labor and equipment- to perform various work as listed.
1. Provide a diversion around the railroad tracks for offsite water to be diverted around sand storacre.
2. Provide a berm around the sand storage to divert all offsite water from the sand and divert all on site
rainwater to -the storm water storage area.
3. Prepare a storm water retention basis'with enough capacity for a 25-year storm event.
4. Provide a plan from Johnny Nobles And Associates of Lumberton, NC to prepare this site to ensure
that all storm water is captured and used as process water.
5. Stop water flow from the pipe that is embedded in the sand.
-- Pricer S 68,250.00
Time: To start upon approval
Length: 120 days from approval.
Payment: Progress payments to be made every 30 days.
ALCHEM, INC. TARA GROUP OF LUMBERTON, INC.
Wayne Drye, Denise B. Andrews,.
Vice President President
WOMAN BUSINESS ENTERPRISE!
Heavy Highway Utilities Sewer Plants Mining.

Thanks you for your corporation in this matter.
Sincerely
Charlie Andrews
CC: ' Johnny Nobles, RLS; Johnny Nobles & Associates
Mr. Wayne Drye, Plant Manager, Alchem, Inc.
WOMAN BUSINESS ENTERPRISE!
Heavy Highway Utilities Sewer Plants Mining

DIVISION OF WATER QUALITY
ENFORCEMENT CASE ASSESSMENT FACTORS
Type: (PC/SS) Permit Condition/Stream Standard Violations
Violator: ALCHEM, Inc.
Address: 8135 Red Road
Rockwell, North Carolina 28135
Registered Agent: Mr. Randall.F. Andrews, President .
Address: 2042 Buie Philadelphus Road
Red Springs, North Carolina 28377
Regional. Office: Mooresville
1. The degree arid extent of harm to the natural resources of the State, to the public health, or
to private property resulting from the violations:
Impacts to the tributary to Second Creek and adjacent private properties occurred from the
runoff of the residuals and the sediment basin discharges from the ALCHEM, Inc. residual
storage site. The two private properties (riparian areas) contained large accumulations of
residuals (sandbar appearance) in several locations with measurements up to twelve (12)
inches. The residuals had impacted up to 500 linear feet of stream. Specifically, twelve (12)
to twenty-four (24) inches of deposition was measured throughout the impacted portion of
the tributary. The tributary's pH was nearly 100 times more acidic than the upstream
(unaffected) section due to the deposited residuals and the sediment basin discharges.
2. The duration and gravity of the violations:
The discharges appeared to have occurred over several months.
3. The effect on ground or surface water quantity or quality or on air quality:
The riparian areas/private properties had residual deposition up to twelve (12) inches and the
stream had residual deposition up, to twenty-four (24) inches. As such, no aquatic He was
found due to the stream being covered by the runoff of the residuals.:The impacted portion
of the tributary was nearly 100 times more acidic (than the upstream/unaffected portion) due
to the residual deposition and sediment, basin discharges.
4. The cost of rectifying the damage:
According to ALCHEM, Inc.'s response letter, the cleanup activities were estimated at
$68,250.00. The cleanup activities incorporated by ALCHEM, Inc. have not been completed;
therefore; the official amount could not be determined.

5.
0
7.
91
10.
The. amount of money saved by noncompliance:
None could be determined; however, money could have been saved by facility's failure to
incorporate the appropriate erosion control measures.
Whether the violations were committed willfully or intentionally:
The violations did not appear to be Nvillful or intentional; however, the Non -Discharge Permit
clearly indicates. the conditions for compliance.
The prior record of the violator in complying or failing to comply with programs over which
the Environmental Management Commission has regulatory authority:
A NOV was issued on January 15, 2002 by DWQ/MRO for the failure to submit the required
monitoring reports stipulated in Section III, Parts 3 and 4 of Permit No. WQ0016338. A
NOV was issued by DWQ/MRO on October 25, 1990 regarding an illegal discharge
(overflow) from one of the settling lagoons. The stream's pH was analyzed by MRO staff
and was below the minimum water quality stream standard (less than 6.0 s.u.). On May 30,
1986, DWQ/MRO staff observed a black pipe in the stream for the removal of alum sludge
that had accumulated in the stream. No NOV was issued. A complaint report dated
December 30, 1985 detailed several site visits conducted by MRO staff regarding the
conditions of the unnamed tributary adjacent to ALCHEM, Inc. that included: elevated
alunimum/zinc/iron levels and a white floc that had covered the stream bottom. In addition,
the investigations revealed very low pH measurements in a catch basin (< 2.0 with litmus
paper) that had collected stormwater and residual runoff from the ALCHEM, Inc. facility
(See attached reports).
The cost to the State of the enforcement procedures:
Central Office Review and Processing = $100.00
14 hours by investigators for investigating and
drafting report @ $17.38/hour = $243.32
1.0 hour by Water Quality Regional Supervisor
for review @ $39.96/hour = $ 39.96 -
1.0 hour for clerical support @ $15.00/hour = $ 15.00
TOTAL = $398.28
Type of violator and general nature of business (i.e. individual vs. large corporation):
ALCHEM, Inc. is a business involved with the production of alum (aluminum sulfate) that
is utilized as a settling aid for water treatment facilities.
Violator's degree of cooperation (including efforts to prevent or restore) or recalcitrance:
The facility has been cooperative regarding corrective actions.

CERTIFICATION PAGE
I certify that the information in this report is true to the best of my knowledge.
All violations of self -monitoring data have been verified by hard copy review of the
monthly reports (if applicable) and the appropriate permit (if applicable).
Signature of Princi le 'Investigator(s):
Wesley k Bell, Environmental Tech. IV
Date: (e /I `t //0 J

Ceramorate Ofl`1'ce
2042 Buie Phdadelphu9 Road
R.n gb.t.c,. NC 28377
Tcl. 910-843.2121 -- Fax [phone]
[e-mail]
December 31, 2003
Mr. D. Rex Gleason
Water Quality Regional Supervisor
NCDENR
919 North Main Street"
Mooresville, NC 281.1.5
Dear Mr. Gleason:
r7.Ll.01 AL1V1' AA ® � .
Sales r"danufacturi
8135 Rod Rc
Rockwell, NC 28:
Tel. [phone] — Fax [phone]
pdrye alchem 6iinlemet.
Alchem, Inc. is certain you are aware of the problems at our plant in Rockwell. Alehe>n, Inc. is interested in tt
possibility of settling with you on this. Alchcm, Inc. is sure you luiow fhe real problem was that Alchem, Inc. has hz
very large amounts of rainfall. Rainfall amount information from Salisbury is being included.
Alchem, Inc feels that they have been in compliance with all of the regulations until this very large amount of rainf�
came. When Alchem, Inc. did find that Alchem, Inc. had a problem Alchem, 111c. had trouble repairing the proble
because of the large amount of rainfall. Alchem, Inc. also has found that the dry run creek is normally at a ph or abo
4.2 to 4.5 after a rain fall event. Alchem, Inc. recognizes that the spring that is located on the property has a ph
about 6.
However,, the rainfall in the area is at ph 4.2. Therefore Alchem, Inc. does not feel that we are causing a low ph. Tt-
low ph is natural. Alchem, Inc. also found that there is an abundance of aquatic life in the stream. Alchem, Inc. woul
like to ask you to do the following:
l . Abate the $ 2,000.00 penalty for low stream ph as the rainfall has a 4.2 ph.
2. Settle the rest of the penalty at fifty percent.
3. Alchem, Inc. will pay the investigative costs.
Alchem, Inc. would like to inform you that they have spent over $ .10,000.00 cleaning up the sand down stTeam fro,,
our property. Alchem, Inc. has put up a much larger holding bank of dirt. Alchem, Inc. feels this can never happe
again. Although financial considerations are not your problem the last three years have been difficult .for ther
financially. Please give Alchem, Inc. any consideration that you can.
Best regards,
ALCHEM, INC.
Randall F. Andrews,
Consultant
vll
Ed W 01:0T E00Z 12 '0aQ : -ON Xdj WOa_

;�,tatnon (zz3Ha,i) tlattt retrieval
Page 1 of 1 .
Station: SALT -Piedmont Research Station Date of first observation: O7/24/1996
Station type: ECONET - Tower °
City, State: Salisbury, NC County: Rowan County
Latitude: 35.7° Longitude:-80.62°
' Elevation: 823 feet above sea level
Climate division: NC04 - Central Piedmont
River basin: Yadkin
Supported by: NC Agricultural Research Service
Retrieving monthly data from Piedmont Research Station for 1112002 thru 11/2003
13 records found for this time period
L1
Click here to plot Daily Precipitation
Date/Timte of ob
monthly SUM of
Daily Precipitation
at 2m (in)
11/2002
4.31
12/2002
5.17
01/2003
1.11
02/2003
3.72
03/2003
6.88
04/2003
9.06
05/2003
6.31
06/2003
5.46
07/2003
5.78
08/2003
5.35
09/2003
5.32
10/2003
1.7
11./2003
0.5
NC CRONOS Database version 1,5b
Page expelled in 0.044 secs.
fllc://C':TocuincrItS%20an(1%20Settitigs\u ltilitiistrator\l.,c)cal%20scttinL,5\Tc:rnnnrar%t(`/`?n t t /I 9/1IVII
gd WUOT :01 200E IE: 'oaQ : 'ON XUJ : WObj

STATE OF NORTH CAROLINA FILED IN THE OFFICE OF
ADMINISTRATIVE HEARINGS
COUNTY OF ROWAN, r 7004 MAR _z P 3• 50 03 EHR 1587
OFFICE OF
AL CHEM, INC., WAYNE D. DRYE, ADMIOISTRATIVE
HE)4RIPIGS
Petitioner, )
v, )
SETTLEMENT AGREEMENT AND
NORTH CAROLINA DEPARTMENT OF WITHDRAWAL OF PETITION,
ENVIRONMENT AND NATURAL )
RESOURCF;S, DIVISION OF WATER )
QUALITY, }
Respondent. )
The North Carolina Department of Environment and Natural Resources ("DENR"),
Respondent, and Petitioner, Alchem, Inc., Wayne D. Drye ("Petitioner"), hereby enter into this
Settlement Agreement ("Agreement") in order to amicably resolve matters in controversy as they
relate to the civil penalty assessment. This matter arose out of the assessment of civil penalties
and costs totaling five thousand nine hundred ninety-eight dollars and twenty-eight cents
($5,998.28, which includes three hundred ninety-eight dollars and twenty-eight cents (S398.28)
in enforcement costs), imposed upon Petitioner on August 19, 2003 for alleged violations of
North Carolina General Statutes § 143-215.1 er seq and Non -Discharge Permit WQ0016338
DENR and the Petitioner have reached the following settlement agreement in this matter:
1. Petitioner will adhere to the following conditions:
a. Petitioner will submit a plan or schedule to remove sand and
other materials £rom a tributary to Second Creek and the
7". TT rn T Ow QQ1Q-QT)-ATk*XP4 NnT M_4q fiNH-1 � N-AIHM

riparian areas of the two affected private properties adjacent
6 to Alchem, Inc.;
b. Petitioner will submit a plan or schedule for removal of sand
and other materials deposited by Petitioner's facility to the
Mooresville Regional Office ofthe Division of Water Quality
within thirty (30) days of execution of this agreement.;
C. Petitioner shall remove sand and other materials from the
creek, creek • bank, and the areas where the deposits exist in
the forested area adjacent to the creek located on property
owned byAlchem, Inc. and the two affected private properties
adjacent to Alchem, Inc, in accordance with the plan or
schedule submitted.;
d. Petitioner shall submit written notice of completion of
removal of sand and other materials to the Mooresville
Regional Office of the Division of Water Quality within five
(5) days of said completion.
2. The Petitioner will pay a total of four thousand 'eight hundred seventy-eight
dollars and twenty-eight cents ($4,878.28 ("Settlement Amount"), calculated as follows: Total
Penalty $5,600.00 - 20% of penalty = 4 480.00 (80% of penalty) + investigative costs of
3$ 98.28 = $4,878.28) to DENR for settlement in the manner hereinafter described. The
Settlement Amount shall be made in the following manner: The Settlement Amount shall be
made in twenty-four (24) monthly payments. The first payment shall be due and payable on
20'd 2b:11 s0. T .add 99Z9-9TZ-6T6:Xo3 NOI103S QNdI'8 831UM

i
n
March 1, 2004 in the amount of two hundred three dollars and thirty cents ($203.30). Each
payment thereafter shall be due and payable on the I' day of each month consecutively in
the amount of two hundred three dollars and twenty-six cents ($203.26) totaling: $203.30 +
($203.26 x 23) $4,674.98 = $4,878.28. The last paynnent shall be due and payable on or before
February 1, 2006.
3. The payments shall be by check made payable to the North Carolina Department
of Environment and Natural Resources (or to "DENR") at the following address:
Stonnie D. Forte, Esq.
Attorney General's Office
Environmental Protection Division
Post Office Box 629
Raleigh, NC 2-7602-0629
4. The breach'of any condition of Paragraphs one (1), or two (2) by Petitioner Will
render due and payable the entire amount of the civil penalty assessment, including investigative
costs i.e., five thousand nine hundred ninety-eight dollars and twenty-eight cents ($5,998.28).
5. Petitioner and DENR expressly stipulate and acknowledge that, by entering into
this Agreement, Petitioner neither admits nor denies the allegations contained in the Findings and
Decisions and Assessment of Civil penalties. However, upon a breach of paragraph one (1) or
two (2) of this Agreement, by Petitioner, the sole issue in any action by DENR is to collect the
Entire amount of the civil penalty assessment including investigative costs i.e., five thousand
nine hundred ninety-eight dollars and twenty-eight cents ($5,998.28)'in accordance with the
terms of paragraph four (4) above and will be limited to the petitioner's compliance with the
terms of this Agreement.
-3-
t7n •a Sb: TT S0. T .add 99Z9-9TZ-6%: x23 NOI103S GNU-1 ' n1dM

5. DENR agrees to accept payments totaling four thousand eight hundred seventy-
Los
eight dollars and twenty-eight cents ($4,878.28), in complete satisfaction of the civil penalty
assessment subject to the terms of this Agreement.
6. Nothing in this Agreement shall restrict any right of DENR to take any
enforcement action against petitioner for any future violations; i.e., violations occurring after
May 8, 2003.
7. The DENR and Petitioner agree that, for purposes of any future bankruptcy
proceeding, this Agreement is not intended as, nor shall it be deemed to constitute, a novation of
any cl.ainns asserted by DENR against Petitioner. Petitioner further agrees that all sums payable
to DENR pursuant to this Agreement are nondischargeable in bankruptcy under 11 U.S.C. § 523.
Nothing in this Agreement releases any nondisehargeability claims that may be asserted by
AIL DENR in any bankruptcy proceeding, and nothing in this Agreement shall be deemed a waiver of
the DENR 's right to rely on the nature of any claim or debt released in this Agreement to show
that the claim or debt is nondischargeable.
8. This Agreement shall be binding upon the parties and is entered into knowingly,
intelligently, and voluntarily.
SO'd Sb:TT S0. I .add 99Z9-9TZ-6T6:XPJ NOI103S GNU-1' MUM

y
WITHDRAWAL OF PETITION
�9. Entry of this Agreement serve as Petitioner's Withdrawal of its Petition for
Contested Case Hearing Without Prejudice in these matters. The parties agree this matter is
concluded and that no further proceedings are needed or required to resolve the contested case.
This the L day of February.2004. .
•
•
FOR THE DIVISION OF WATER
QUALITY
Alan Klimek, Director of
Water Quality
Date:
D. Rex Gleason, Mooresville
Regional Supervisor
Date: Z,, 2 S�7 6 f
ROX COOIaEk�
Attorney General
By:
ormie D. Forte
Associate Attorney General
N. C. Department of Justice
Environmental Division
9001 Mail Service Center.
Raleigh, NC 27699-9001
[phone] -
[phone]/Fax -
PETITIONER:
1 `2/u�-
Alchem, Inc., Wayne D. Drye
Dater
Randall F. Andrews, Consultant
Alchem, Inc.
Date: �� �" r 1 '1,00
-$-
an ,.I - 9t7: 11 SO. I add
99Z9-9IZ-6I6:x2J NOI133S tlNUI ' �31dm

NCDENR MRO Fax:[phone] Apr 1 2005 14:18 P.02
�U '99 williem G. r%N.
G North Cemhna DCPWWMt pf trnvironra=t and lvatune, RcxtwtoLm
CIO�Alan W.
. _'I D»t,<,pn n!•V1•ale: lluxhh'
3 &�
3anuary 12, 2005
Randall F. Andrews, Pmideut
AI.Cd, Inc.
2042 Buie Phladelphus Road
Red, Springs, North Carolina 28377
Subject: Notice of _Vi0lati0WNo11ce of
Recommendation for Enforce>mteut
ALCBEK Inc.
Violation of General Statute 143-215.1
Follow-up Investgation
Rowan County, N.C.
Tracking f,: NOV-2005-SS-0001
wear Mr. ,A udrews:
Cbapter 143, Article 21 of the North Carolina General Statutes (NCGS) autlaorizes and diocects the
nvllfanmental Management Cob=ission of this Department to protect and preserve the water resources of
the State The Division of Water Qum' (pwQ) has the delegated authority to enforce adopted pollution
control rules and regulations.
Enclosed pleased a copy of a follow-up Investigation Report for the investigations conducted
on December 36, 2004 and January 5, 2005 by ],�lr. Wes Bell. Tlae follow-up investigation'butary to
s were
e tri
performed to assess ALdIEN1, Ines on -site remedial active ttxe followivag o iltzonsand the conditiou of �werre d m
Second Creek (tn'butwy)• As a result of these laavestigations,
Violation ofNorth Carolina General Statute (NCGS)143-215.1 and 15A North Carolina Awe
Code (NCA,C) 2B _0211 (3)(g):
The acidic discharges into the unnamed tributary (UT) resulfmg from the
drainage through the unrebmediated woodedhiparian areas (on the
,CFUEtvL 1bc: s property), bad lowered the tt•t`batary's p'H from 6.22 s.u.
(upstream) to 4.76 S.U. (10 - 20 yards downsbv= of wb�ere the drainage
eaters the UT). No evidence wasobserved to suggest that A LCBEK
Inc_ had continued remedial efforts (required in the settl=ent agreement)
withiCk the woodedfr iparian area on the business site.
%!+1 MoortsvilleNC2S115 (704)Gfii�1C95r
ooresvP$iOw ��`+ 630 FRst G-.nmr Ague, Suite 30., .i b74E
N. r- Division of Wa= Quality, M

NCDENR MRO Fax:[phone] Apr 1 2005 14:18 - P.03
Mr. Randall F. Andrews
January 12, 2005
page Two
Please be advised that this report is being issued as a Notice of Violation (NOV) and Notice for
Recommendation for Enforcement QURE) for the violations of NCGS 143-215.1, 15A NCAC ?B .0211
(3)(g), and the facility's failure to continue to remediate the wooded/riparian area located on the facility's
property, Be'advised that NCGS 143-215.6A provides for a civil penalty assessment of not mote that
twenty-five thousand dollars ($25,000.00), or twenty-five thousand dollars ($25,U00.04) per day when the
violation is of a co�utinuing nature, against any person who fails to abide by the conditions of the permit
and who fails to apply for or to 'secure a permit requi A by NCGS 143 215.1. penalties may also be.
assessed for any damage to the sti of waters of the State that may result from the unpermitted discharges.
This letter is also to advise you that this Of ice is considering sending a recommendgtion for.
enforcezneztt action to the I3ireator of the Division of Water Quality for the acidic discharges into the
unnamed tributary to Second Creek, water quality Stream standard violations (pH), and the facility's failure
to continue the cleanup on the unremediated areas on the facility's propeM. IFyou have an explanation foe
the violations that you wish to present, please include same in the requested response. Your explanation
will.be revi�ewed.and if an enforcement action is still deezued appropriate, your explanation will be
forwarded to the V rector along with the et�rrcezner't package for his consideration.
It is requested that you respond, iri writing, within fifteen (15) days following receipt of this
Notice. Ibe response should address the measures taken to immediately cease the acidic discharges
resulting from the drainage through the unremediated wooded/riparian ems, axed the efforts to ensure
future discharges do not recur. In addition,, a detailed plan should be included that spe6Wes the
.remediation activities utilized.and the date of completion for the'cleanup of the unrexaaediated
vooded/riparian areas ore the facility's property-
Sbiouldyou have questions, please do not hesitate to coact Nv r. Bell or zee at [phone]-
Sincerely,
D. Rex Gleason, P.E.
Surface Water protection Regional Supervisor
Asia +tl -'AAi-
ec: Rowan County Health pepartmezit
Storntie Forte, Associate Attorney C=erA
Wayne Dxye, plant Manager, ALCHEM, Inc.

NCDENR MRO Fax:[phone]
02/11/2005 10:19 7042798418
ALC
Corvoratc Q ce
2042 Brie Philadetphus Road
brad Springs, NC 28377 • `
1-pA, 910_843.2121 — Fax 910-g43S789
,{a c�aemr.net •,,�
February 9, 2005
Apr 1 2005 15:25
ALCHEM.ING
EM, INC
P.02
PAGE 01
ales and Mon aoturin
SM Red Road
Rock a;U, NC 2813E
Tel. [phone] — Fax [phone]
' pdrye,elchem@�iin�ernacnec
Mr, Rex Gleason
Water Quality Regional Supervisor
NCDENR
919 North Main Street
Mooresville, NC 2811.5
-Dear Mr. Gleason:
I would like to inform you. that we have taken the following steps at our facility.
1, We obtained soil sampling boxes fro tn the local extdnsjoT, agent. informed of the recomme d
sent in soil samples and asked that we belevets of Lime to add. We have already added agricultural Lime to the
soil in the affected area. We are, constantly monitoring the ph of the
' stream. The latest reading �nin ditch from our pras in the area of operty. 6.6. We will
continue to monitor the dry L rr....
2. We have contacted a tree expert at fne coui ty a will hen give us some
be. making a site visit next week and
recommendations,
3.
We have completely repaired the silt fence and put much larger stones
on it to hold it in place•
I will continue giving you reports of our progress.
Best regards,
ALCHEM, INC.
Wayne Drye,
Plant Manager
vll .

NCDENR MRO
01/27F20e5 16:38
Fax:[phone] Apr 1 2005 15:24 P.01
70427WA18
ALCHEM INC PAGE 02
ALCHEM, IN('/'
ROCKWELL, NC
704-279-7908 fax 704-7 n k a
pdryeC3a alltelxat
Tanuary 27, 2005 �s
Mr. D. Rex Gleason, P.l✓.
upervisor
Surface Water protection Regional S�` la u�
NCDENR 3
Divisioa of Water Quality
Surface Water Protection Unit
610 East Centex Ave. Suite 301
Mooresville, NC 28115
Dear Mr, Gleason;
Alcbern, ITIc is very cone ,zxued about the impact of tha runoff from Alchem proPcx'tY-
cl Inn has removed sand trom the stream an abor�oded areas rising temporary persor l• Same of
the areas were not possible to enter with manual l
Adchem has hired Tara Group Construction to brim in heavy equipment to complett this cleanup in a
quick and professional manner.
Alchem employees have applied some agricultural lime in some areas to neutralize tbLe soil. We will
increase this effort.
lrhe"M is in the Process
The silt fence is very hard to mau.r+i Qe with nall �nr11i hesaM trees. s'1t fence willll be observed more Often
of
putting rip rap rock at i11 vx L..
Group has applied 3 feet to the Berm around the entire residual. storage perimetez in the fast week and
Tara
'very close to moving into the heavily wooded areas fore eau up.
.Al
Chem has contacted Rowan Community College to hire a student to do cnvironmcntal checks, pki
testia�g, Collect water samples, etc for Alchem. was not as low as
Al.cllem, Inc Personnel did -pH testing every week since the jastN.O,V. The pH reading
lv)r. Wes Bell reported.
leted by raid February weather permitting.
I expect to have this clean up eAmp
' X£ possible we would lika to meet with you before you take any action On this.
Hest regards,
ALCHENI INC
! -"Yng
Wayne Dye,
Plat..t Ma-nagtr
pCd

s. .
DIVISION OF WATER QUALITY
ENFORCEMENT CASE ASSESSMENT FACTORS
Type: (PC/SS) Permit Condition/Stream Standard Violations
Violator: ALCHEM, Inc.
Address: 8135 Red Road
Rockwell, North Carolina 28135
Registered Agent: Mr. Randall F. Andrews, President
Address: 2042 Buie Philadelphus Road
Red Springs, North Carolina 28377
Regional Office: Mooresville
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 violations:
Impacts to the tributary to Second Creek and adjacent private properties occurred from the
runoff of the residuals and the sediment basin discharges from the ALCHEM, Inc. residual
storage site. The two private properties (riparian areas) contained large accumulations of
residuals (sandbar appearance) in several locations with measurements up to twelve (12)
inches. The residuals had impacted up to 500 linear feet of stream. Specifically, twelve (12)
to twenty-four (24) inches of deposition was measured throughout the impacted portion of
the tributary. The tributary's pH was nearly 100 times more acidic than the upstream
(unaffected) section due to the deposited residuals and the sediment basin discharges.
2. The duration and gravity of the violations:
The discharges appeared to have occurred over several months.
3. The effect on ground or surface water quantity or quality or on air quality:
The riparian areas/private properties had residual deposition up to twelve (12) inches and the
stream had residual deposition up to twenty-four (24) inches. As such, no aquatic life was
found due to the stream being covered by the runoff of the residuals. The impacted portion
of the tributary was nearly 100 times more acidic (than the upstream/unaffected portion) due
to the residual deposition and sediment basin discharges.
4. The cost of rectifying the damage:
According to ALCHEM, Inc.'s response letter, the cleanup activities were estimated at
$68,250.00. The cleanup activities incorporated by ALCHEM, Inc. have not been completed;
therefore, the official amount could not be determined.

4�. %01
5.
n
VA
W
10
The amount of money saved by noncompliance:
None could be determined; however, money could have been saved by facility's failure to
incorporate the appropriate erosion control measures.
Whether the violations were committed willfully or intentionally:
The violations did not appear to be willful or intentional; however, the Non -Discharge Permit
clearly indicates the conditions for compliance.
The prior record of the violator in complying or failing to comply with programs over which
the Environmental Management Commission has regulatory authority:
A NOV was issued on January 15, 2002 by DWQ/MRO for the failure to submit the required
monitoring reports stipulated in Section III, Parts 3 and 4 of Permit No. WQ0016338. A
NOV was issued by DWQ/MRO on October 25, 1990 regarding an illegal discharge
(overflow) from one of the settling lagoons. The stream's pH was analyzed by MRO staff
and was below the minimum water quality stream standard (less than 6.0 s.u.). On May 30,
1986, DWQ/MRO staff observed a black pipe in the stream for the removal of alum sludge
that had accumulated in the stream. No NOV was issued. A complaint report dated
December 30, 1985 detailed several site visits conducted by MRO staff regarding the
conditions of the unnamed tributary adjacent to ALCHEM, Inc. that included: elevated
aluminum/zinc/iron levels and a white floc that had covered the stream bottom. In addition,
the investigations revealed very low pH measurements in a catch basin (< 2.0 with litmus
paper) that had collected stormwater and residual runoff from the ALCHEM, Inc. facility
(See attached reports).
The cost to the State of the enforcement procedures:
Central Office Review and Processing . _ .$100.00
14 hours by investigators for investigating and
drafting report @ $17.38/hour = $243.32
1.0 hour by Water Quality Regional Supervisor
for review @ $39.96/hour = $ 39.96
1.0 hour for clerical support @ $15.00/hour = $ 15.00
TOTAL = $398.28
Type of violator and general nature of business (i.e. individual vs. large corporation):
ALCHEM, Inc. is a business involved with the production of alum (aluminum sulfate) that
is utilized as a settling aid for water treatment facilities.
Violator's degree of cooperation (including efforts to prevent or restore) or recalcitrance:
The facility has been cooperative regarding corrective actions.

'�Vf= 4
CERTIFICATION PAGE
I certify that the information in this report is true to the best of my knowledge.
All violations of self -monitoring data have been verified by hard copy review of the
monthly reports (if applicable) and the appropriate permit (if applicable).
Signature of Principle Investigator(s): / I • I�
Wesley . Bell, Environmental Tech. IV
Date: (/I q / 0 J

Alchem, Inc.
8135 Red Road
RnCkm/Pll N C: 9R13R
Date
Well #
pH
Conductance
AI -Aluminum
Dissolved Solids
Sulfate
Suspended Solids
12/10/2001
Water Supply
6.1
1350
0.014 ppm as Al
MW-1
6
956
0.584 ppm as Al
MW-2
5.9
960
1.12 ppm as Al
8/17/2001
MW-1
5.9
0.795 ppm as Al
MW-2
5.3
2.16 ppm as Al
3/22/2001
MW-1
6.3
1.57 ppm as Al
MW-2
6.2
9.14 ppm as Al
8/15/2000
MW-1
5.25
1.33 ppm as Al
MW-2
5.25
5.20 ppm as Al
3/3/2000
MW-1
5.4
2.50 ppm as Al
MW-2
5.5
.720 ppm as Al
8/27/1999
MW-1
5.4
27
6.35 ppm as AI
50 ppm
5 ppm as SO4
831 ppm
MW-2
5.4
23
5.19 ppm as Al
31 ppm
3 ppm as SO4
1780 ppm
3/12/1999
MW-1
5.4
20
1.30 ppm as Al
37 ppm
<1 ppm as SO4
1120 ppm
MW-2
5.35
20
7.65 ppm as AI
30 ppm
2 ppm as SO4
2170 ppm
8/14/1998
Water Supply
6.13
1060
.522 ppm as AI
779 ppm
406 ppm as SO4
3 ppm
MW-2
4.95
23
.165 ppm as Al
29 ppm
<1 ppm as SO4
4 ppm
MW-3
5
24
.356 ppm as Al
34 ppm
2 ppm as SO4
118 ppm
2/25/1998
Water Supply
6.7
a,; 541
.027 ppm as Al
362 ppm
169 ppm as SO4
2 ppm
MW-2
5.4
31
.040 ppm as Al
33 ppm
2 ppm as SO4
5 ppm
MW-3
5.6
30
.044 ppm as Al
46 ppm
3 ppm as SO4
5 ppm
8/6/1997
Water Supply
6.7
418
.058 ppm as AI
263 ppm
100 ppm as SO4
4 ppm
MW-2
5.3
26
.035 ppm as Al
29 ppm
1 ppm as SO4
6 ppm
MW-3
5.3
27
.056 ppm as AI
32 ppm
1 ppm as SO4
11 ppm
3/10/1997
Water Supply
6.8
195
.044 ppm as Al
177 ppm
29 ppm as SO4
2 ppm
MW-2
5.25
25
.043 ppm as Al
37 ppm
1 ppm as SO4
5 ppm
MW-3
5.2
25
.095 ppm as Al
43 ppm
1 ppm as SO4
5 ppm
8/26/1996
Water Supply
7
205
.023 ppm as Al
147 ppm
23 ppm as SO4
2 ppm
MW-2
5.45
27
.157 ppm as Al
29 ppm
1 ppm as SO4
13 ppm
MW-3
5.4
28
.375 ppm as Al
30 ppm
1 ppm as SO4
54 ppm
3/12/1996
Water Supply
6.75
494
0.125 ppm as AI
338 ppm
130 ppm as SO4
<1 ppm
MW-2
5.2
37
1.05 ppm as Al
44 ppm
6 ppm as SO4
<1 ppm
MW-3
5.25
35
.475 ppm as Al
42 ppm
5 ppm as SO4
<2 ppm
8/9/1995
Water Supply
7
264
.035 ppm as Al
169 ppm
39 ppm as SO4
4 ppm
MW-2
5.8
27
.070 ppm as Al
30 ppm
<1 ppm as SO4
30 ppm
MW-3
5.7
27
.230 ppm as Al
28 ppm
1 ppm as SO4
44 ppm
3/21/1995
Water Supply
6.6
235
.040 ppm as Al
197 ppm
41 ppm as SO4
<1 ppm
MW-2
5.5
19
.105 ppm as Al
31 ppm
<1 ppm as SO4
2 ppm
MW-3
5.5
24
.355 ppm as Al
41 ppm
1 ppm as SO4
20 ppm
8/1/1994
Water Supply
6.75
205
.030 ppm as Al
198 ppm
23 ppm as SO4
<1 ppm
MW-2
5.4
53
.395 ppm as Al
67 ppm
3 ppm as SO4
178 ppm
MW-3
5.4
49
.795 ppm as Al
54 ppm
3 pm as SO4
204 ppm
EO/1
Water Supply
7.1
212
.025 ppm as Al
165 ppm
32 ppm as SO4
<1 ppm
MW-2
5.65
33
.455 ppm as Al
36 ppm
3 ppm as SO4
163 ppm
MW-3
5.65
33
1.90 ppm as Al
40 ppm,
3 ppm as SO4
324 ppm

wAT�9P
,o
Michael F. Easley, GTemor
May 12, 2003
CERTIFIED MAIL
RETURN RECEIPT REQUESTED
Mr. Wayne Drye, Plant Manager
ALCHEM, Inc.
8135 Red Road
Rockwell, North Carolina 28138
William G. Ross, Jr.,Secretary
North Carolina Department of Environment and Natural Resources
Alan W. Klimek, P.E., Director
Division of Water Quality
Subject: Notice of Violation/Notice of
Recommendation for Enforcement
ALCHEM, Inc.
Illegal Discharge/Permit Violations/
Surface Water Quality Standard Violations
Permit No. WQ0002702
Rowan County, N.C.
Dear Mr. Drye:
Chapter 143, Article 21 of the North Carolina General Statutes (NCGS) authorizes and directs the
Environmental Management Commission of this Department to protect and preserve the water resources of
the State. The Division of Water Quality (DWQ) has the delegated authority to enforce adopted pollution
control rules and regulations.
Enclosed please find a copy of a Complaint Investigation Report for the investigation conducted
on April 30, 2003 by Mr. Wes Bell of this Office. As a result of this investigation, the following
conditions were found in violation of North Carolina General Statute (NCGS) 143-215.1, 15A North
Carolina Administrative Code (NCAC) 2B .0211 (2), (3)(c) and (g), and Non -Discharge Permit No.
WQ0002702:
The facility's storage area for.its fill material had discharged into a
drainage/wooded area and an intermittent stream. The intermittent stream
was observed covered (up to 24 inches) with the fill material for a total
distance of approximately 400=500 feet (upstream and downstream of
Medium Road). The upstream pH value was 6.04 s.u. and the
downstream pH values (following the discharges) ranged from 4.15 s.u. to
4.22 s.u. The facility impaired/removed the suitability of the stream for
aquatic life and propagation and maintenance of biological integrity,
wildlife, and secondary recreation. The permittee failed to 1) properly
operate and maintain the facility as a non -discharge facility, 2) cease reuse
operation once nuisance conditions existed, 3) provide adequate
provisions to prevent surface runoff from conveying pollutants into
surface waters, and 4) notify this office of the residuals release into the
receiving stream.
'HONE [phone] Mooresville Regional Office, 919 North Main Street, Mooresville, NC 28115
:AX [phone]
NTDENWR
Customer Service
1 800 623-7748

Mr. !Wayne Drye
NO V/NRF,
Page Two
Please be advised that this report is being issued as a Notice of Violation (NOV) and Notice of
Recommendation for Enforcement for the violations of NCGS 143-215.1, 15A NCAC 2B .0211 (2), (3)(c)
and (g), and Non -Discharge Permit No. WQ0002702. Be advised that NCGS 143-215.6A provides for a
civil penalty assessment of not more that twenty-five thousand dollars ($25,000.00), or twenty-five
thousand dollars ($25,000.00) per day when the violation is of a continuing nature, against any person who
fails to abide by the conditions of the permit and who fails to apply for or to secure a permit required by
NCGS 143-215.1. Penalties may also be assessed for any damage to the surface waters of the State that
may result from the unpermitted discharge.
It is requested that you respond, in writing, within twenty days following receipt of this Notice.
The response should address the measures taken to collect and remove the fill material, and efforts to
restore all affected areas. Measures taken to prevent future discharges should also be discussed.
This letter is also to advise you that this Office is considering sending a recommendation for
enforcement action to the Director of the Division of Water Quality for the discharge of the fill material
into a stream, water quality stream standard violations (pH and best usage), and the facility's failure to
abide by the conditions of Permit No. WQ0002702. If you have an explanation for the violations that you
wish to present, please include same in the requested response. Your explanation will be reviewed and if
an enforcement action is still deemed appropriate, your explanation will be forwarded to the Director along
with the enforcement package for his consideration.
To comply with the regulations, it will be necessary to collect and remove all of the fill material (in
the stream and drainage/wooded areas) and restore all affected areas as nearly as may be to the conditions
existing prior to the discharge.
Should you have questions, please do not hesitate to contact Mr. Bell or me at [phone].
Sincerely,
D. Rex Gleason, P.E.
Water Quality Regional Supervisor
Attachments
cc: Rowan County Health Department
WE

NORTH CAROLINA DEPARTMENT OF ENVIRONMENT
AND NATURAL RESOURCES
DIVISION OF WATER QUALITY
WATER QUALITY SECTION
919 NORTH MAIN STREET
MOORESVILLE, NORTH CAROLINA 28115
REPORT OF: Complaint Investigation
DATE OF INVESTIGATION: April 30, 2003
INVESTIGATED BY: Wes Bell~ TIME SPENT: 2.0 hours
PLACE VISITED: ALCHEM, Inc. Business Site
PHYSICAL LOCATION: Rockwell, Rowan County
MAILING ADDRESS: 8135 Red Road
Rockwell, N.C. 28138
TELEPHONE #: [phone]
RIVER BASIN: Yadkin -Pee Dee
PERSONS CONTACTED: Mr. Wayne Drye, Plant Manager, On -site Employees
REASON FOR VISIT: Investigation of complaint regarding discharge of a white substance into
a drainage/wooded area and creek
COPIES TO: Rowan County Health Department
REPORT:
On April 29, 2003, this office received a complaint that a white substance from
ALCHEM, Inc. had been discharged into a drainage/wooded area and intermittent stream in
Rockwell, Rowan County. The complaint was investigated by Wes Bell of this office on April
30, 2003.
Mr. Bell arrived at a residence below ALCHEM, Inc. adjacent to Medium Road. Mr. Bell
observed large accumulations of a white, granular material (sand appearance) throughout the
drainage/wooded area. In addition, this white substance had completely covered the bottom of an
intermittent stream (unnamed tributary to Second Creek - Class C Stream) for approximately
200-300 feet (upstream of Medium Road). The intermittent stream was observed free -flowing on
top of the white substance at the time of the investigation.
Mr. Bell traced the white material (upstream) throughout the drainage/wooded area and
intermittent stream to a large storage area containing this white material. The material appeared
to be used as a fill material. This fill material appeared to have covered an area between three to
five acres. The fill area had been severely eroded allowing the material to flow across a sediment
basin and silt fence into the drainage/wooded area. The white substance (combined with a clay)
had eroded/discharged into the intermittent stream in several locations. The permittee did not
appear to have incorporated appropriate erosion control measures to contain the material.

Complaint Investigation
Page Two
Mr. Bell met with the ALCHEM, Inc. on -site employees. Mr. Bell escorted one of the
employees to the affected drainage/wooded area and intermittent stream. While at the facility,
Mr. Bell observed two lagoons adjacent to the fill material. The employee indicated that the two
lagoons were part of a wastewater reuse system. A third lagoon on -site was utilized as a backup.
Bauxite (aluminum ore) is transported to ALCHEM via railcart. The bauxite is mixed
with silica sand (80% bauxite and 20% silica sand), and made into a slurry via water additions.
Sulfuric acid is added to the bauxite slurry (to create the finished product - aluminum sulfate) and
a polymer is then added to aide in settling/removal of the sand. The sand is removed and rinsed
three times with water (to remove the aluminum) prior to discharging the sand/water mixture into
the lagoon system. The sand is removed from the lagoons and used as a fill material. The water
is also reused in the process. Mr. Bell was informed by the on -site employee that the facility
monitors two on -site groundwater monitoring wells as well as the fill material. Mr. Bell
reviewed the facility's permit requirements on -site and at this office.
Mr. Bell determined that ALCHEM, Inc. was issued Permit No. WQ0002702 by the
Division for the on -site reuse of silica residuals from bauxite digestion as a fill material. The
Permit became effective on January 21, 1999 and expires on December 21, 2004. The Permit
authorizes the usage of 3,000 tons per year of residual to be used as a fill material on the
company's property from -the bauxite residuals reuse program. The facility failed to comply with
the conditions of their permit. Specifically, the facility failed to 1) properly operate and maintain
the facility as a non -discharge facility, 2) cease reuse operation once nuisance conditions existed,
3) provide adequate provisions to prevent surface runoff from conveying pollutants into surface
waters, and 4) notify this office of the residuals release into receiving waters. The accumulation
of the fill material in the stream impacted/removed the suitability of the waters for aquatic life
and maintenance of biological integrity, wildlife, secondary recreation, and agriculture, which is
a violation of 15A North Carolina Administrative Code (NCAC) 2B .0211 (2) and (3)(c).
Messrs. Bell and Alan Johnson (of this office) revisited the drainage/wooded areas and
intermittent stream upstream and downstream of Medium Road on 5/8/03. Mr. Bell sampled the
intermittent stream for pH above and below the impacted areas throughout the intermittent
stream. The upstream pH value was 6.04 s.u. and the downstream pH values ranged from 4.15 to
4.22 s.u. A pH value of 4.22 s.u. was recorded at the most distant downstream sampling location
(100-150 feet downstream of Medium Road). The facility's discharge of the fill material into the
stream caused a surface water quality pH standard violation. The standard for Class C Waters is
between the 6-9 s.u. (Reference: 15A NCAC 213 .0211(3)(g). Large accumulations of the fill
material were also observed throughout the drainage/wooded area at this downstream location.
Mr. Bell analyzed the pH of the accumulated water in the sediment basin adjacent to the fill
material. The pH value was 3.86 s.u. The sediment basin was discharging into the intermittent
stream at the time of this investigation. Mr. Johnson's measurements of the accumulations in the
stream channel showed a depth of up to twenty-four inches. Mr. Johnson also measured
accumulations up to twelve inches throughout the drainage/wooded areas (upstream and
downstream of Medium Road).

Complaint Investigation
Page Three
Mr. Wayne Drye, Plant Manager, contacted Mr. Bell via telephone regarding the
investigation. Mr. Bell informed Mr. Drye of the findings and environmental regulations
relevant to the investigation. In addition, Mr. Bell informed Mr. Drye that the Division of Land
Resources' Land Quality Section would be notified regarding the inadequate erosion and control
measures. Mr. Drye and his staff were very cooperative and helpful throughout this
investigation. A follow-up investigation by this office may be necessary to verify adequate
remedial actions.

Forate
ALCHEM INU40Sales and Manufacturing
Office 8135 Red Road
�04hiladelphus Road Rockwell, `'C 28i38
Red Springs, NC 28377 Tel. [phone] - Fax [phone]t8
Tel. [phone]- Fax 9io-843-5789 [e-mail]
[e-mail]
8. We plan to inspect the holding pond to make certain that it has not
filled with sand. If there is any sand we will remove it. We will inspect .
monthly.
g: We intend to contract with a construction company to construct this
project. Please see enclosed contract.
I hope that this information is satisfactory to you. Please let me know if you have
any questions comments or concerns.
Best regards,
ALCHEM, INC.
LU �u r
Wayne Drye,
Vice President
vll

V 6tNiq,i
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May 23, 2003
The TARA GROUP OF LUMBERTON, INC.
2042 Buie Philadelphus Rd Red'Springs, NC 28377
NC# 41562 — SC# 98350
Equipment vards — Hwy 72 West, Lumberton, NC
Red Road, Rockwell, NC
Telephone [phone] — Facsimile 910-843-5789
Mr. D. Rex Gleason, P.E., Water Quality Regional Supervisor
North Carolina Department of National Resources
919 North Main Street
Mooresville, NC 28115
RE: Notice of Violation for Alchem, Inc.
8135 Red Road
Rockwell, NC 28138
Permit No. woaooU33`b
Rowan County, NC
Dear Mr. Gleason:
Please be advised that. Alchem, Inc has hired The TARA Group of Lumberton, Inc. The
proposal for this project was signed Monday May 12, 2003. -TARA Group will be providing
design build grading and erosion control repairs for our client at the above reference
address. TARA Group has subcontracted. with Johnny Nobles ' & Associates to provide all
surveying and engineering work that will take. place on this project site. We will be
forwarding the erosion control plan to you for approval by you and DENR within the nest 15
days.
We have advised our client that we will be working very closely with them within the next
week to install temporary and necessary erosion control measures so this will reduce the
possibility of any further violation in regards to this matter. We look forward to working
with you and DENR in getting this matter resolved and getting our client in compliance. Our
company maintains an excellent working relationship with the Fayetteville regional office of
DENR.
We will be contacting you shortly in regards to this matter. If you have any questions prior
to us contacting you please feel free to contact us to discuss this matter. Again, we look
forward to solving the problems at hand and putting our client back in total compliance with
your agency along with DENR.
WOMAN BUSINESS ENTERPRISE!
Heavy Highway Utilities Sewer Plants Mining

' r `O 6iHig4� 111c lLuui Viw vi V1
�P ay 2042 Buie Philadelphus Rd Red Springs, NC 28377
o` A NC# 41562 — SC# 98350
Ca Equipment vards — Hwy 72 West, Lumberton, NC
s Red Road, Rockwell, NC
e op P Telephone [phone] N Facsimile 910-843-5789
�M1A��
May 28, 2003
CONTRACT BETWEEN
THE TARA GROUP OF LUMBERTON AND ALCHENI, INC.
Job description: Provide all planning, design, labor and equipment to perform various work as listed.
1. Provide a diversion around the railroad tracks for offsite water to be diverted around sand storage.
2. Provide a berm around the sand storage to divert all offsite water from the sand and divert all on site
rainwater to the storm water storage area.
3. Prepare a storm water retention basis with enough capacity for a 25-year storm event.
4. Provide a plan from Johnny Nobles And Associates of Lumberton, NC to prepare this site to ensure
that all storm water is captured and used- as process water. .
5. Stop water flow from the pipe that is embedded in the sand.
Price: $ 68,250.00
Time: To start upon approval
Length: 120 days from approval.
Payment: Progress payments to be made every 30 days.
ALCHEM, MC. TARA GROUP OF LUMBERTON, INC.
CiLkd,-V--t-u
Wayne Drye, Denise B. Andrews,
Vice President President .
WOMAN BUSINESS ENTERPRISE!
Heavy Highway Utilities Sewer Plants Mining

Thanks you for your corporation in this matter.
Sincerely
Charlie Andrews
CC: Johnny Nobles, RLS; Johnny Nobles & Associates
Mr. Wayne Drye, Plant Manager, Alchem, Inc.
WOMAN BUSINESS ENTERPRISE!
Heavy Highway Utilities Sewer Plants
Mining

DIVISION OF WATER QUALITY
ENFORCEMENT CASE ASSESSMENT FACTORS
Type: (PC/SS) Permit Condition/Stream Standard Violations
Violator: ALCHEM, Inc.
Address: 8135 Red Road
Rockwell, North Carolina 28135
Registered Agent: Mr. Randall F. Andrews, President
Address: 2042 Buie Philadelphus Road
Red Springs, North Carolina 28377
Regional Office: Mooresville
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 violations:
Impacts to the tributary to Second Creek and adjacent private properties occurred from the
runoff of the residuals and the sediment basin discharges from the ALCHEM, Inc. residual
storage site. The two private properties (riparian areas) contained large accumulations of
residuals (sandbar appearance) in several locations with measurements up to twelve (12)
inches. The residuals had impacted up to 500 linear feet of stream. Specifically, twelve (12)
to twenty-four (24) inches of deposition was measured throughout the impacted portion of
the tributary. The tributary's pH was nearly 100 times more acidic than the upstream
(unaffected) section due to the deposited residuals and the sediment basin discharges.
2. The duration and gravity of the violations:
The discharges appeared to have occurred over several months.
3. The effect on ground or surface water quantity or quality or on air quality:
The riparian areas/private properties had residual deposition up to twelve (12) inches and the
stream had residual deposition up to twenty-four (24) inches. As such, no aquatic life was
found due to the stream being covered by the runoff of the residuals. The impacted portion
of the tributary was nearly 100 times more acidic (than the upstream/unaffected portion) due
to the residual deposition and sediment basin discharges.
4. The cost of rectifying the damage:
According to ALCHEM, Inc.'s response letter, the cleanup activities were estimated at
$68,250.00. The cleanup activities incorporated by ALCHEM, Inc. have not been completed;
therefore, the official amount could not be determined.

5.
C.1
7.
6
10.
The amount of money saved by noncompliance:
None could be determined; however, money could have been saved by facility's failure to
incorporate the appropriate erosion control measures.
Whether the violations were committed willfully or intentionally:
The violations did not appear to be wilful or intentional; however, the Non -Discharge Permit
clearly indicates the conditions for compliance.
The prior record of the violator in complying or failing to comply with programs over which
the Environmental Management Commission has regulatory authority:
A NOV was issued on January 15, 2002 by DWQ/10RO for the failure to submit the required
monitoring reports stipulated in Section III, Parts 3 and 4 of Permit No. WQ0016338. A
NOV was issued by DWQ/MRO on October 25, 1990 regarding an illegal discharge
(overflow) from one of the settling lagoons. The stream's pH was analyzed by MRO staff
and was below the minimum water quality stream standard (less than 6.0 s.u.). On May 30,
1986, DWQ/MRO staff observed a black pipe in the stream for the removal of alum sludge
that had accumulated in the stream. No NOV was issued. A complaint report dated
December 30, 1985 detailed several site visits conducted by MRO staff regarding the
conditions of the unnamed tributary adjacent to ALCHEM, Inc. that included: elevated
aluminum/zinc/iron levels and a white floc that had covered the stream bottom. In addition,
the investigations revealed very low pH measurements in a catch basin (< 2.0 with litmus
paper) that had collected stormwater and residual runoff from the ALCHEM, Inc. facility
(See attached reports).
The cost to the State of the enforcement procedures:
Central Office Review and Processing . _ $100.00
14 hours by investigators for investigating and
drafting report @ $17.38/hour = $243.32
1.0 hour by Water Quality Regional Supervisor
for review @ $39.96/hour = $ 39.96
1.0 hour for clerical support @ $15.00/hour = $ 15.00
TOTAL = $398.28
Type of violator and general nature of business (i.e. individual vs. large corporation):
ALCHEM, Inc. is a business involved with the production of alum (aluminum sulfate) that
is utilized as a settling aid for water treatment facilities.
Violator's degree of cooperation (including efforts to prevent or restore) or recalcitrance:
The facility has been cooperative regarding corrective actions.

CERTIFICATION PAGE
I certify that the information in this report is true to the best of my knowledge.
All violations of self -monitoring data have been verified by hard copy review of the
monthly reports (if applicable) and the appropriate permit (if applicable).
Signature of Principle Investigator(s): /r• ,•�
Wesley . Bell, Environmental Tech. IV
Date: f q / 0 J

.Cdrrp'orate Of17ce
2042 Buie Phdadelphus Road
R-A 5p.1n7,. NC 28977
Tel. [phone] —Fax [phone]
[e-mail]
December 31, 2003
Mr. D. Rex Gleason
Water Quality Regional Supervisor
NCDENR
919 North Main Street
Mooresville, NC 2811.5
Dear Mr. Gleason:
"L%..&l 1JL.1VA 7 Al V %.... .
Sales nd Manufacturi•:
8135 Rod Rc
Rockwell, NC 28:
Tel. [phone] — Fbx 704-279.8c,
pdrye alchem@6iinlemet.
Alchem, Inc. is certain you are aware of the problems at our plant in Rockwell. Alchem, Inc. is interested in tl
possibility of settling with you on this. Alchem, Inc. is sure you Icnow the real problem was that Alchem, Inc. has hr
very large arnounts of rainfall. Rainfall amount information from Salisbury is being included.
Alchcm, Inc feels that they have been in compliance with all of the regulations until this very large amount of rainfi=
came. When Alchem, Inc. did find that Alchem, Inc. had a problem Alchem, lne. had trouble repairing the proble
because of the large amount of rainfall. Alchem, Inc. also has found that the dry run creek is normally at a ph or abo
4.2 to 4.5 after a rain fall event. Alchem, Inc. recognizes that the spring that is located on the property has a ph
about 6.
However,, the rainfall in the area is at ph 4.2. Therefore Alchem, Inc. does not feel that we are causing a low ph. Tl-
low ph is natural. Alchem, Inc. also found that there is an abundance of aquatic life in the stream. Alchem, Inc. woul
like to ask you to do the following:
Y
1. Abate the S 2,000.00 penalty for low stream ph as the rainfall has a 4.2 pb.
2. Settle the rest of the penalty at fifty percent.
3. Alchem, Inc. will pay the investigative costs.
Alchem, Inc. would like to inform you that they have spent over S .10,000.00 cleaning up the sand down stream fro;
our property. Alchem, Inc. has put 'up a much larger holding bank of dirt. Alchem, Inc. feels this can never happe
again. Although financial considerations are not your problem the last three years have been difficult for ther
financially. Please give Alchem, Inc. any consideration that you can.
Best regards,
ALCHEM, INC.
.�ma Ef". Z M -
Randall .E. Andrews,
Consultant
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......_ �,,,,�, �,� a.� c �cuauvui r�cycalcn JCSII011 (JHl iJ Qilttl TC1r16V�lI Page 1 of 1
i
Station: SALT - Piedmont Research Station Date of first observation: 07/24/1996 —"
Station type: ECONET -Tower U
City, State: Salisbury, NC County: Rowan County
Latitude: 35.7° Longitude:-80.62°
Elevation: 823 feet above sea level
Climate division: NC04 - Central Piedmont
Rider basin: Yadkin
Supported by: NC Agricultural Research Service
Retrieving monthly data from Piedmont Research Station for 1112002 thru 11/2003
13 records found for this time period
Ll Click here to plot Daily Precipitation
Date/Time of ob monthly SUM of
Daily Precipitation
at 2tn (tin)
11/2002
4.31
12/2002
5.17
01/2003
1.11
02/2003
3.72
03/2003
6.88
04/2003
9.06
05/2003
6.31
06/2003
5.46
07/2003
5.78
08/2003
5.35
09/2003
5.32
10/2003
1.7
11./2003
0.5
NC CRONOS Database version 1.5b
Page expelled in 0.044 secs.
fiIc://C':1Documcnts%ZUancf%20Settin�s\1drt�inistrator\T.,c�cal%2tj��ttin�s�Tt;Tnllrlt'Ar�r%�fl I t it R��ni�z
2d WUOT :01 MOE TE -3a0 'ON XUJ = Woa3

STATE OF NORTH CAROLINA FILED IN THE OFFICE OF
ADMINISTRATIVE HEARINGS
COUNTY OF ROWAN, r 7004 MAR _2 P 3. 50 03 EHR 1587
OFFICE OF
AL CHEM, INC., WAYNE D. DRYE, AOhi10I3TRATIVE
HE)4RINGS
Petitioner, )
V. )
SETTLEMENT AGREEMFNT AND
NORTH CAROLINA DEPARTMENT OF WITHDRAWAL OF PETITION
ENVIRONMENT AND NATURAL )
RESOURCES, DIVISION OF WATER )
QUALITY, )
Respondent. )
The North Carolina Department of Environment and Natural Resources ("DENR"),
10 Respondent, and Petitioner, Alchem, Inc., Wayne D. Drye ("Petitioner"), hereby enter into this
Settlement Agreement ("Agreement") in order to amicably resolve matters in controversy as they
o
relate to the civil penalty assessment. This matter arose out of the assessment of civil penalties
and costs totaling five thousand nine hundred ninety-eight dollars and twenty-eight cents
($5,998.28, which includes three hundred ninety-eight dollars and twenty-eight cents ($398.28)
in enforcement costs), imposed upon Petitioner on August 18, 2003 for alleged violations of
North Carolina General Statutes § 143-215.1 er sect and Non -Discharge Permit WQ0016338.
DENR and the Petitioner have reached the following settlement agreement in this matter:
1. Petitioner will adhere to the following conditions:
a. Petitioner will submit a plan or schedule to remove sand and
other materials from a tributary to Second Creek and the
• I rr rn r AdH Qq)q-9T)-6T6:XEA NOI101S GNdl ' 231Url

F h
riparian areas of the two affected private properties adjacent
6 to Alchem, Inc.;
b. Petitioner will submit a plan or schedule for removal of sand
and other materials deposited by Petitioner's facility to the
Mooresville regional Office oftheDivision of Water Quality
within thirty (30) days of execution of this agreement.;
C. Petitioner shall remove sand and other materials from the
creek, creek - bank, and the areas where the deposits exist in
the forested area adjacent to the creek located on property
owned byAlchem, Inc, and the two affected private properties
adjacent to Alchem, Inc, in accordance with the plan or
schedule submitted.;
d. Petitioner shall submit written notice of completion of
removal of sand and other materials to the Mooresville
Regional Office of the Division of Water Quality within five
(5) days of said completion.
2. The Petitioner will pay a total of four thousand eight hundred seventy-eight
dollars and twenty-eight cents ($4,878.28 ("Settlement Amount"), calculated as follows: Total
Penalty S5,600.00 - 20% of penalty = 4 480.00 (80% of penalty) + investigative costs of
3$ 98.28 = $4,878.28) to DENR for settlement in the manner hereinafter described. The
Settlement Amount shall be made in the following manner: The Settlement Amount shall be
made in twenty-four (24) monthly payments. The first payment shall be due and payable on
-2-
20 'd 2b: TT SO, T idd 99Z9-9TL-6%: Xp.d NOI193S QNdO '8 831dM

March 1, 2004 in the amount of two hundred three dollars and thirty cents ($203.30): Each
® - . payment -thereafter shall be due and payable on the I' day of each month consecutively in
the amount of rivo hundred three dollars and twenty-six cents ($203.26) totaling: $203.30
($203.26 x 23) $4,674.98 = $4,878.28. T;he last payment shall be due and payable on or before
February 1, 2006,
3. The payments shall be by. check made payabl.e to the North Carolina Department
of Environment and Natural Resources (or to "DENR") at the following address:
Stornue D. Forte, Esq.
Attorney General's Office .
Environmental Protection Division
Post Office Bove 629
Raleigh, NC 27602-0629
.4. The breachof any condition of Paragraphs one (1), or two (2) by Petitioner Will
render due and payable the entire amount of the civil penalty assessment, including investigative
costs i.e., five thousand nine hundred ninety-eight dollars. and twenty-eight cents ($5,998.28).
5. Petitioner and DENR expressly stipulate and acknowledge that; by entering into
this Agreement, Petitioner neither admits nor denies the allegations contained in the Findings and
Decisions and Assessment of Civil penalties. However, upon a breach'of paragraph one (1) or
two (2) of this Agreement, by Petitioner, the sole issue in any action by DENR is to collect the
Entire amount of the civil penalty assessment including investigative costs i.e., five thousand
nine hundred ninety-eight dollars and twenty-eight cents ($5,998.28)`in accordance with the
terms of paragraph four (4) above and will be limited to the Petitioner's compliance with the
terms of this Agreement.
-3- :.
t7n %4 st7: 11 so, 1 idd 99Z9-9TZ-6T6: xE3 NOI133S QNUI 8 �31UM

5. DENR agrees to accept payments totaling four thousand eight hundred seventy-
eight dollars and twenty-eight cents ($4,87828), in complete satisfaction of the civil penalty
assessment subject to the terms of this Agreement.
6. Nothing in this Agreement shall restrict any right of DENR to take any
enforcement action against Petitioner for any future violations; i.e., violations occurring alter
May 8, 2003.
7. The DENR and Petitioner agree that, for purposes of any future bankruptcy
proceeding, this Agreement is not intended as, nor shall it be deemed to constitute, a novation of
any claims asserted by DENR against Petitioner. Petitioner ;further agrees that all sums payable
to DENR pursuant to this Agreement are nondischargeable in bankruptcy under 11 U.S.C. § 523.
Nothing in this Agreement releases any nondischargeability claims that tnay be asserted by
AOL DENR in any bankruptcy proceeding, and nothing in this Agreement shall be deemed a waiver of
the DENR 's right to rely on the nature of any claim or debt released in this Agreement to show
that the claim or debt is nondischargeable.
8. This Agreement shall be binding upon the parties and is entered into knowingly,
intelligently, and voluntarily_ -
o ,.
SO°d 2b:TT S0, T udd 99Z9-9TZ-6T6:X23 NOI193S QNUI' MUM

5
s
s
WITHDRAWAL OF PETITION
9. Entry of this Agreement serve as Petitioner's Withdrawal of its Petition for
ConLesttd Case Hearing Without Prejudice in these matters. The parties agree this matter is
concluded and that no further proceedings are needed or required to resolve the contested case.
This the �� day of February 2004.
FOR THE DIVISION OF WATER
QUALITY
Alan Klimek, Director of
Water Quality
Date: 3 z O
D. Rex Gleason; Mooresville
Regional Supervisor
o
Bate:�-
ROY COOPER
Attorney General
ormie D. Forte
Associate Attorney General
N. C. Department of Justice
Environmental Division
9001 Mail Service Center
Raleigh, NC 27699-9001
[phone]
[phone]/Fax
PETITIONER:
Alehem, Inc., Wayne D. Drye
Date:____=
_�,w &J"'.
Randall F. Andrews, Consultant
A.lchem, Inc. j f
Date: J �-' ,00
qn •a m ti q0. I .add
99Z9-9TZ-6T6:X2J NOI 33S QNU�' dMHM

NCDENR MRO
Fax:[phone] Apr 1 2005. 14:18 P.02
William C. Rpm}t:. �cc�rta
North Cnmhnn Departmeni or$nviranmcnt and Niranl r—oureCc
Also W. KhmcL r. r— E)IMCIdt
Dieu<,pn orWate: Quality
.. aladall F. Andrews, President
ALC1M4, Inc.
2042 Buie Phiiladelphus Road
Red Springs, North Carolina 28377
January 12, 2005
Subject Notice of'ViolationiNotiee of
Recommendation for Enforeemeut
ALCBEK Inc.
Violation of General Statute 143-215.1
Follow-up Investigation ..
Rowan County, N.C.
Tracking #: NOV-2005-SS4001
Dear Mr. ,A,ndrews:
Chapter 143, Article 21 of the North Carolina General Statutes (NCGS) aizt . the and directs the
Environmental Manager. eat Commission of this Department to Protect and preserve the water resources of
the State. The Division of water Quality. (DWQ) has the delegated authority to enforce adopted pollution
control rules and regplations.
Enclosed please Enid a copy of a follow-up InvestiSation Report for the investigations conducted
on December 30, 2004 and January 5, 2005 by Mr. Wes Bell. 'Ibc follow up investigations were
petfozuied to assess ALCHEM, Inc.'s on -site remedial activities and the condition of the tributary to
As ,result of these juvestigaxions, the follow, aMg conditions were found in
Second Creek (tributary). CGrS 143-215.1 and 15A North Carolina Adz>a siraxive
violation of North CaroHna General Statute (N )
Cade (NC,A.C) 2B .0211 (3)(g):
The acidic &charges into the unnamed tributary (Uj) resulting from the
drainage hough the unrMediated woodedfriparian mess (on the
lead lowered the b*titary s pN from 6.22 s.u.
ALCMEM, Ibtc: s property),
(upstream) to 4.76 s.u. (10 - 20 yards downsh'eam of where the drainage
eaters the UT). No evidence was. observed to suggest
that
ALCent t ement)
BEK
Inc_ had ccmtinued medial efforts (requiredin the t
withim the woodedinparian areas an the business site.
�+nF rt:u_i h •
p bapF�stG-aterAv�ue,Suite30,,,MoorsvilleNG2S115 (704)663�1695 E ;-u.ib74E V
:d. C Aivision of Water Quality, M.0=vi j ' 1 cam,

NCDENR MRO
Fax:[phone] Apr 1 2005 14:18 P.03
Mr. Randall F. Andrews
January I2, 2005
Page Two
Please be advised that this report is being issued as a Notice of Violation (NOV) and Notice for
Recommendation for Enforcement (" dW) for the violations of NCGS 143-215.1, 15A NCAC 2B .0211
(3)(g), and the facility's failure to continue to remediate the wooded/riparian area located on the facility's
property, Be advised that NCGS 143 215.6A provides for a civil penalty assessment of not more that
twenty-five thousand dollars ($25,000.00), or twetrty-f ve thousand dollars ($25,000.00) per day when the
violation is of a continuing. nature, against any person who fails to abide by the conditions of the pernnit
and who £ails to apply for or to secure a permit required by NCGS 143 215.1. Penalties may also be.
.assessed for any damage to the surface waters of the Statc that may result from the unpermitted disch-
This letter is also to advise you that this Office is considering sending a reeotnMendation for
enforcement action to the Director of the Division of Water Quality for the acidic discharges into the
unnamed tributary to Second Creek, water quality Stream standard violations (pIT), and the facility's f'at"lure
too continue the cleanup on the unremediated areas on the facilztY's property. If You have an explanation for
the violations that you wish to present, please include same in the requested response. Your explanation
will. be reviewed. and if an euf°rcement action is still degwed appropriate, your explanation will be
forwarded to the Director along with the enfbrceMent package for his consideration -
It is requested that you respond, in writing,
within fifteen (15) days following receipt of this
Notice. The response should address the measures taken to immediately cease the acidic discharges
resulting from the drainage through the unremediated wooded/riparian areas, and the efforts to ensure
future discharges do not recur. In addition,. a detailed plan should be included that speciBes the
es utilized and the date of completion. for the*cleanup of the unremediated
remediation activiti
vrooded/riparian areas On the facility's property.
s, please do not hesitate to contact Mr. Bell or me at [phone].
Sb�ould you have q,iestion
sincerely,
D. Rex Gleason, P.B.
Surface Water Protection Regional Sopervlsor
,(}ILQ�.L111G/.l�
cc: Rowan County 1:%aith Dept m't
Stormmie Forte, ,Associate AttomeY General
Wayne prye, Plant Manager, ALCB EM, Inc.
VAI/; I

NCDENR MRO Fax:[phone]
Apr 1 2005 15: 25 P. 02
g2/11!?005 16:19 7042798418 ALCHEM INC
AL,CHEMP INC o
Comoratc Office
2042 Buie Phitadelphur, Road
Red Springs, NC 7 • L
Tel . 910-&43.2121 — Fax [phone]
February 9, 2005
PAGE 01
. Sales and MOMS& K rJnQ
813S Red Road
Rockwall, NC 28138
Tel. [phone] -- Fa% 704-279-8419
pdrycalchem@?&K eenut-mr
Mr, Itex Gleason
Water Quality'Regional Supervisor
NCDENR
919 North Main Street
Mooresville, NC 28115
-Dear Mr. Gleason:
1 would like to inform you that we have taken the following steps at our facility.
We obtained soil sampling boxes from. the local extension agent. We
sent in soil samples and asked that we be informed of the recommend
levels of Lltne to add. We have already added agricultural Lime to the
soil in the affected area. We are constantly monitoring the ph of the
stream. The latest reading was in the area of ph 6.4 — 6.6• We Will
continue to monitor the dlyrun ditch from our property. rr
2• We have contacted a tree eXpei-t at the couiity age its offis C�� ..
be making a site visit next week and will then give us some
recommendations.
3• We have completely repaired the silt fence and put much larger stones
on it to hold it in place.
1 will continue giving you reports of our progress.
Best regards,
ALCHEM, INC.
Wayne Drye,
Plant Manager
vll

NCDENR MRO
01/27/20e5 16:aS
Fax:[phone] Apr, 1 2005 15:24 P.01
7042798418
ALCHEM INC FACE 02.
CHEM, IN(' --r-.:
8135 RED RO.A,D
ROCKW>LWr C z�/ ` G
704-279-7908 fax 704-7
[e-mail] ' %`V-�b 719 !`t
h, . ICL%
Jaztuary 27, 2005
Mr. D. Rex Gleas , t},[
aterPxotection Regional Supervisor
surface W
NCDENR 3
Division of Water Quality
Surface Water Protection Unit S
610 East Center Ave, Suite 301
Mooresville, NC 28115
Dear M.e. Gleason;
Alchem, IPr is very coRceme-d about the impact of tho ruiaoff from Alchem property
d sand from. the s,reaual labor, ,jwooded areas ttsing temporary persowiel. Some of
Alelttrrz, Inc has remove
the areas were not possible to enter witk mart
Alchem has hired Tara Group Construction to bring in heavy equipment to complete this cleanup in a
quick and professional J0lanner.
Alchexxa employees have applied some agricultural lime in some areas to neutralize the soil. We will
increase this cffort-
The silt fence is very hard�to Maintain with fallen rithesaiO trees, s 1t.fence willcheTn is in the process beobserved more often�W of
putting rip xap Xbcx ai iuc va�� �� �••y ""` " arotzrid e entire residual storage perime in the fast week and
Tara Group has applied 3 feet to the berm
very close to taovtng into the heavily wooded areas for clean up.
,Alchem has contacted 'Rowan Community College to hire a student to do cuvitonmcntal checks, PH
testizlg, collect water samples, etc for Alchem•
ersonnel did pH I testing cvery week since the last N-ON, The pl-I reading was ttbt as low as
Alchem, Inc p
Mr. Wes Bell reported.
1 expect to have this clean, up completed by paid February weather permitting.
If possible we would liko to meet with you before You take any action on this.
Best regards,
ALCHENI INC
b1�"pk
Wayne ])rye)
!Taut Iv W1agtr
pCd

State of North Carolina
Department of Environment,
Health and Natural Resources
Division of Environmental Management
James B. Hunt, Jr., Governor
Jonathan B. Howes, Secretary
A. Preston Howard, Jr., P.E., Director
A
tc. IIbM-r. OF NATMATM
RESOURCES AND
September 2, 1993 COMMUN.1 YY DEVEI ()I'*•rN1T
r- P 0 7 W3
DlylSlljn: Fsl' IN i:SE>ii
Memorandum
To: Betsy Mosley
N. C. Department of Justice
From:- Randy Jones
Water Quality Permits and Engineering
Subject: ermit No. WQ0002702
Alchem, Incorporat
es -Bauxite Process
Rowan County
By letter dated June 30, 1993, to Mr. Randall F. Andrews of Alchem, Incorporated, the Division
of Environmental Management responded to an adjudication request regarding the subject permit. The
letter instructed Mr. Andrews to execute an attached "Notice of Withdrawal" if he was satisfied with the
Division's response. By telephone conversation on September 2, 1993, Mr. Andrews informed me that
he would execute the Notice of Withdrawal in the next couple of days.
If you have,any questions, feel free to contact me at 733-5083, extension 517.
cc: Donald Safrit
Jack Floyd (�—Mooresville Regional Office, Groundwater l
P.O. Box 29535, Raleigh, North Carolina 27626-0535 Telephone [phone] FAX [phone]
An Equal Opportunity Affirmative Action Employer 50% recycled/ 10% post -consumer paper

o = ILA le C) - (k)q)
I c e-

rag—�2-9- THU 1 i :!56
TI,�
t
STATE OF NORTH CAROLINA ` ..
COUNTY OF ROWAN
FII.r. NO.93 HHR 0474
ALCHEM, INCORPORATED
Petitioner,
V.
DEPARTNIENI' OF ICINVJXONMENT,
HEALTH AND NA,rURAL RESOURCES
DIVISION OF ENVIRONMENTAL
MANACENMNT
Respondent.
IN'CI>E QF1;7C8 -
ADM I N ISTR.ATM HFAR11yGg
NOTICE OF WITIi[1RAWAL
OF PETITION w
Petitioner hcm.by wudraws its petidOn for a contested case hearing, No turthcr pnxYrdinfis ate
needed or ncrluircre
d to solve the contested case capauned above.
This the _ day of
Peaamerm'uthority fo�titi"w
CERTMCATF OF SERVICE
1 hereby) c-cnify that I have this day Mcd an original and one ruPY of this NOTTCH' 01'
WITUDRAWAL -i the Office of Acbuni�=jive Efetuing.¢ at the.address specified below and that I
apecihavr,fitsbyd firebelow:r class mail, scrvrd a COPY Of the Same on counsel for the Respondent at thr address
OrLue of Adminismmvr.11cadugs Ms. Iletsy Musley
Post Office Drawer 27447 Nort4 Camlirta
Raleigh, North Curulina'761 l -7447 Post Office Box 629 of Justice
Raleigh, North Carolitta 27602-0629
I htc Petition Attrngey for• PCtidotter

=State of North Carolina
Department of Environment,
' Health and Natural Resources
Division of Environmental Management
James B. Hunt, Jr., Govern6i
Jonathan B. Howes, Secretary
A. Preston Howard, Jr., P.E., Director
June 30, 1993
Mr. Randall F. Andrews
Alchem, Incorporated
Route 2, Box 521-C
Red Springs, N. C. 28377
Subject: Comments Regarding Adjudication
Permit No. WQ0002702
Alchem, Incorporated
Wastewater Recycle Facilities -Bauxite Process
Rowan County
Dear Mr. Andrews:
On April 8, 1993, the Division of Environmental Management issued Permit No. WQ0002702 to
Alchem, Incorporated for the .operation of the subject wastewater recycle facilities. This permit authorized
the continued operation of two existing lagoons and the construction and operation of five additional
lagoons. On May 4, 1993, you submitted a "Petition for a Contested Case Hearing" to the Office of
Administrative Hearings, objecting to the requirement for the installation of three new monitoring wells in
the permit. You state that Alchem, Incorporated had been previously required to install monitoring wells
near -the lagoons.
The requirement for the new monitoring wells was originally incorporated into the amended permit
because the construction of the new lagoons substantially increased the storage capacity and because
domestic water supply wells are located downgradient of the lagoons. The lagoons will have a clay liner
with a permeability of less than 1 x 10-6 centimeters per second; however, the new lagoons are proposed
to be constructed below the original grade and in saprolite, and the Division's regional personnel feel that
groundwater levels may not be as deep as originally stated. If the lagoons were to leak, there could be
very little attenuation of waste constituents before reaching the groundwater table. For these reasons, the
Division continues to support its original requirement for the installation of the new monitoring wells.
After two years of groundwater monitoring data has been collected, however, the Division would consider
a request from you to eliminate the groundwater monitoring.
P.O. Box 29535, Raleigh, North Carolina 27626-0535_ Telephone [phone] FAX [phone]
An Equal Opportunity Affirmative Action Employer 50% recycled/ 10% post -consumer paper

Mr. Andrews
June 30, 1993
- Page 2
If this response is not satisfactory- to .you, please notify Mr. Randy Jones, of my staff, in writing
by July 19, 1993, and we will inform the Attorney Generals Office to continue with the administrative
hearing. If you are satisfied with this response and wish to drop your request for an administrative
hearing, please execute the attached "Notice of Withdrawal" that has been included for your convenience.
If you have any questions on this matter, please call Randy Jones at -919/ 733-5083, extension
517.
incerely,
Donald Safrit, P. ,
Water Quality Tec
Attachment
cc: Mooresville Regional Office, Water Quality
Mooresville Regional Office, Groundwater
Groundwater Section, Jack Floyd
Attorney Generals Office, Betsy Mosley (File No. 93 EHR 0474)
Randy Jones

.f
STATE OF NORTH CAROLINA
COUNTY OF ROWAN
FILE No. 93 EHR 0474
ALCHEM, INCORPORATED
Petitioner,
V.
DEPARTMENT OF ENVIRONMENT,
HEALTH AND NATURAL RESOURCES
DIVISION OF ENVIRONMENTAL
MANAGEMENT
Respondent.
IN THE OFFICE OF
ADMINISTRATIVE HEARINGS
NOTICE OF WITHDRAWAL
OF PETITION
Petitioner hereby withdraws its petition for a contested case hearing. No further proceedings are
needed or required to resolve the contested case captioned above.
This the day of
19
Petitioner/Authority for Petitioner
CERTIFICATE OF SERVICE
I hereby certify that I have this day filed an original and one copy of this NOTICE OF
WITHDRAWAL in the Office of Administrative Hearings at the address specified below and that I
have, by first class mail, served a copy of the same on counsel for the Respondent at the address
specified below:
Office of Administrative Hearings
Post Office Drawer 27447
Raleigh, North Carolina 27611-7447
Ms. Betsy Mosley
North Carolina Department of Justice
Post Office Box 629
Raleigh, North Carolina 27602-0629
Date --Petitioner/Attorney for Petitioner

State of North Carolina
Department of Environment,
Health and Natural Resources
Division of Environmental Management
James B. Hunt, Jr., Governor
Jonathan B. Howes, Secretary
A. Preston Howard, Jr., P.E., Director
Mr. Randall F. Andrews
Alchem, Incorporated
Route 2, Box 521-C
Red Springs, N. C. 28377
Dear Mr. Andrews:
June 30, 1993 *
1993
too,?) �f 1 %41
ilia /
Subject: Comments Regarding Adjudication
Permit No. WQ0002702
Alchem, Incorporated
Wastewater Recycle Facilities -Bauxite Process
Rowan County
On April 8, 1993, the Division of Environmental Management issued Permit No. WQ0002702 to
Alchem, Incorporated for the operation of the subject wastewater recycle facilities. This permit authorized
the continued operation of two existing lagoons and the construction and operation of five additional
lagoons. On May 4, 1993, you submitted a "Petition for a Contested Case Hearing" to the Office of
Administrative Hearings, objecting to the requirement for the installation of three new monitoring wells in
the permit. You state that Alchem, Incorporated had been previously required to install monitoring wells
near the lagoons.
The requirement for the new monitoring wells was originally incorporated into the amended permit
because the construction of the new lagoons substantially increased the storage capacity and because
domestic water supply wells are located downgradient of the lagoons. The lagoons will have a clay liner
with a permeability of less than 1 x 10-6 centimeters per second; however, the new lagoons are proposed
to be constructed below the original grade and in saprolite, and the Division's regional personnel feel that
groundwater levels may not be as deep as originally stated. If the lagoons were to leak, there could be
very little attenuation of waste constituents before reaching the groundwater table. For these reasons, the
Division continues to support its original requirement for the installation of the new monitoring wells.
After two years of groundwater monitoring data has been collected, however, the Division would consider
a request from you to eliminate the groundwater monitoring.
P.O. Box 29535, Raleigh, North Carolina 2.7626-0535 Telephone [phone] FAX [phone]
An Equal Opportunity Affirmative Action Employer 50% recycled/ 10% post -consumer paper

Mr. Andrews
June 30, 1993
Page 2
If this response is not satisfactory to you, please notify Mr. Randy Jones, of my staff, in writing
by July 19, 1993, and we will inform the Attorney Generals Office to continue with the administrative
hearing. If you are satisfied with this response and wish to drop your request for an administrative
hearing, please execute the attached "Notice of Withdrawal" that has been included for your convenience.
If you have any questions on this matter, please call Randy Jones at 919/ 733-5083, extension
517.
incerely,
�h
Donald Safrit, P. ,PAssistant
Water Quality Tec ical S_uM
Attachment
cc: Mooresville Regional Office, Water Quality
t __Mooresville Regional Office, Groundwater
Groundwater Section, Jack Floyd
Attorney Generals Office, Betsy Mosley (File No. 93 EHR 0474)
Randy Jones

STATE OF NORTH CAROLINA
COUNTY OF ROWAN
FILE NO. 93 EHR 0474
ALCHEM, INCORPORATED
Petitioner,
V.
DEPARTMENT OF ENVIRONMENT,
HEALTH AND NATURAL RESOURCES
DIVISION OF ENVIRONMENTAL
MANAGEMENT
Respondent.
IN TIE OFFICE OF
ADMINISTRATIVE HEARINGS
NOTICE OF WITHDRAWAL
OF PETITION
Petitioner hereby withdraws its petition for a contested case hearing. No further proceedings are
needed or required to resolve the contested case captioned above.
This the day of
19 .
Petitioner/Authority for Petitioner
CERTIFICATE OF SERVICE
I hereby certify that I have this day filed an original and one copy of this NOTICE OF
WITHDRAWAL in the Office of Administrative Hearings at the address specified below and that I
have, by first class mail, served a copy of the same on counsel for the Respondent at the address
specified below:
Office of Administrative Hearings
Post Office Drawer 27447
Raleigh, North Carolina 27611-7447
Date
Ms. Betsy Mosley
North Carolina Department of Justice
Post Office Box 629
Raleigh, North Carolina 27602-0629
Petitioner/Attorney for Petitioner

.Jr
DIVISION OF ENVIRONMENTAL MANAGEMENT
GROUNDWATER SECTION
June 25, 1993
nPu: ok, 1V<&7
R.).
4ND
MEMORANDUM
fir, err g E=e^s'mk;Z-0,11ire
'993
TO: Carolyn McC kill
rr:
11 Ali �':Il Ulu iLlill 111 ii1W-.. i
ra r•
THROUGH: Ted Bush
r-^1
f� f y�lieJ6� c�o1
C���I,WI�L OFFICE
FROM: Bob Chee �-
SUBJECT: Adjudication of Permit No. WQ0002702
Alchem, Inc.
Wastewater Lagoon System
Rowan County
WQ0002702/GW93108
(Randy Jones: DEM SERG Review Engineer)
The Groundwater Section has reviewed the subject
adjudicatory request to eliminate groundwater monitoring
requirements from the subject permit. The permit issued April 8,
1993 authorized the construction of five (5) additional. aluminum
sulfate sand slurry storage lagoons and the continued operation
of two (2) existing lagoons. Because (a) the storage capacity
was increased more than fourteen -fold (estimated 66.2 acre-feet),
and (b) domestic water supply wells were located downgradient,
the Groundwater Section recommended construction of three (3)
groundwater monitoring wells. The new lagoons will be
constructed below the original grade and in saprolite and will be
required to have a clay liner with permeability of less than 1 x
10 cm/sec. Should the lagoon leak, there could be little
attenuation of waste constituents before reaching the -groundwater
table. Regional office staff also suggest that groundwater
levels may not be as deep as originally stated by the permittee,
possibly 20 to 30 feet below land surface.
The Groundwater Section stands firm with its decision to
recommend groundwater monitoring continue to remain part of the
permit. We will suggest that a statement be included in the
permit cover letter, stating the Division would entertain a
request from the permittee to eliminate groundwater monitoring
after two years of groundwater monitoring data had been
collected.
If there are any questions, please contact Jack Floyd.
BC/JF:ja/93108.
cc: stfi��n
Central Files
Permit Files

DIVISION OF ENVIRONMENTAL MANAGEMENT
June 22, 1993
MEMORANDUM TO: Jack Floyd
FROM: go' ' .dam NU ;�hY'�7:�)Z-1�
THROUGH: Barbara Christian �p
SUBJECT: Alchem, Inc.
Adjudicatory Request
Rowan County, N.C.
I offer the following in response to the subject
adjudicatory request:
1) This facility has a history of noncompliance with the
Water Quality Section.
2) There are domestic supply wells within several hundred
feet of this facility.
3) The lagoons are being constructed on top of an area
that has already been graded down, substantially into
the saprolite horizon.
4) During my inspection the general appearance and overall
"housekeeping" were poor.
5. The average depth to groundwater in the area is 20-30
feet.
Since the lagoons will be constructed below original grade
and in saprolite, there will be little or no treatment of the
waste before it reaches the groundwater table.
In your memo you mention that alum has never been shown to
be a problem as far as groundwater is concerned. While this may
be true, our concern here is that sulfuric acid is being used in
industrial quantities and that groundwater may be impacted.
Also, I believe that the groundwater table is much higher (20-
30 feet) than what the permittee claims.
I feel that we have ample justification for requiring groundwater
monitoring at this site. Furthermore, if after one year the
wells show that groundwater has not been impacted as a result of
their activities, the groundwater monitoring requirement can be
dropped.
If you have any questions, please let me know.
DDE/sc

C. IDEr,Er 0V NATURAL
Rgg(DURCES AND �dnesday, June 9, 1
X,
CO.MMU.,,'V DEVLLOPM a
_ a
JUR 1 1 1993
MEMORANDUM
V151G+d ilF EidV{kGG.';1E?;TAt (rA3�AGEMEtiI
awox �FFICIr
To: Ted Bush,
Assistant Chief for Operations
Groundwater Section
From: Donald Safri , P.E.,
Assistant C 'ef e ical Support
Subject: Alchem, Inc - Red Road Facility
Permit No. WQ0002702
Rowan County
` AM
In accordance with agreed upon procedures, please review the attached petition filed with
the Office of Administrative Hearings. Please evaluate the objections raised by the
permittee and provide me with your comments within ten (10) working days of your
receipt of this package.
The items under adjudication are:
Requirement for groundwater monitoring wells.
Miscellaneous comments:
cc: Rex Gleason, MRO (FYI)
If you have any questions, please contact Randy Jones
cc: Office of the Attorney General - Kathy Cooper
Donald Safrit
Randy Jones

Adjudications 1
�� �,� �
�
• V �� �; � � l
l 11 , ���� ���� o

b.� J gTri
STATE OF NORTH CAROLINA
COUNTY OF (1) Rowan
PLEASE PRI\? CLEARLY OR TYPE
RECEIVE®
OFFICE OF GENERAL COUNSEL
(2) Alchem, Inc. MAY 7 1993
Rockwell,.NC )
perirloner, ENVIRON TENT HEkLTH
(Your Name) I�
IN THE OFFICE OF
,IATIVE UE_IRINGS
AM NAI U AL R£'OLROEb PETITION
V. ) FOR A
( NC Department of Environment, CONTESTED CASE HEARING
3)
Health and Natural Resources ) RECEIVED
Respondent. )
(The State Agency or Board abiout which you are )
complaining) ) M AY 1 19 - .•
I'�. Ca, i t U ti id i Y I hereby ask For a contested case hearing as provided For by G.S. 150E-23 because the: C� I NI E�rFWL
(4) NC Department of Environment, Health and Natural Resources �­ "� " i ` "has:} JCCt 0ll
(Briefly state facts showing how you believe you have been harmed by the state agency or board.)
We feel that there is no need for monitoring wells We have been r q,,,irpd
to place monitoring wells near the lagoons.
(if more space is needed, use additional sheets and attach)
(5) (Check all that apply) Because of these facts, the agency has:
_deprived me of property;
_ordered me to pay a fine or civil penalty;
_otherwise substantially prejudiced my
rights; and based on these facts the agency
has exceeded its authority or jurisdiction;
(6) Date: May 4, 1993
_acted erroneously;
_failed to use proper procedure;
acted arbitrarily or capriciously; or
_X_failed to act as required by law or rule.
(7) Your telephone number: (919 )843-2121
(8) Print your address: 8135 Red Road Rockwell, NC 28138
(9) Print your name: Alchem, Inc.
(10) Your signature:
You must mail or deliver a COPY to the State Agency named on line (3) of this form. Please indicate below.
CERTIFICATE OF SERVICE
I certify that this Petition has been served on the State Agency named below by depositing a copy of it with the United States
Postal Service with sufficient postage OR by delivering'it to the named agency.
Served on:
(11) Mr. Richard B. Whisnant (12)NC Dept. of Environment. Health & Natural
(name) (agency).
Resources
(13) 512 N. Salisbury Street Raleigh, NC 27604-1148
(address)
(14) This the - 4th day of May 19 93
(15)
When you have completed this form you MUST mail or deliver the ORIGINAL and one COPY to the Office of Adminis-
trative Hearings, P.O. Drawer 27447, Raleigh, NC 27611-7447.
H-06 (11/91)

PLEASE PRINT CLEARLY OR TYPE
STATE OF NORTH CAROLINA
COUNTY OF (1) Rowan
(2)
Alchem, Inc.
.Rockwell, NC
Petitioner.
(Your Name)
(3)
V.
NC Department of Environment,
Health and Natural Resources
Respondent.
(The State Agency or Board about which you are
IN THE OFFICE OF
RATIVE MEaRINGS
n
PETITION r.
=' r 1T
FOR A
CONTESTED CASE HEARING
..
• :J t
rti
complaining)
Q3 E N,2 047411.1
1 hereby ask for a contested case hearing as provided for by G.S. 15OB-23 because the:
(a)NC Department of Environment, Health and Natural Resources has:
(name of agency)
(Briefly state facts showing how you believe you have been harmed by the state agency or board.)
We feel that there is no need for monitoring wells We have been required
-to place monitoring wells near the lagoons
(if more space is needed,.use additional sheets and attach)
(5) (Check all that apply) Because of these facts, the agency has:
_deprived me of property;
_ordered me to pay a fine or civil penalty;
_otherwise substantially prejudiced my
rights; and based on these facts the agency
has exceeded its authority or jurisdiction;
acted erroneously;
_failed to use proper procedure;
acted arbitrarily or capriciously; or
_failed to act as required by law or rule.
(6) Date: May 4, 1993 (7) Your telephone number: (919 )843-2121
(8) Print your address: 8135 Red Road Rockwell, NC 28138
(9 Print your name: Alchem, Inc.
(10 Your signature:
You must mail or deliver a COPY to the State Agency named on line (3) of this form. Please indicate below.
CEn T mCATE GF SERVICE
I certify that this Petition has been served on the State Agency named below by depositing a copy of it with the United States
Postal Service with sufficient postage OR by delivering*it to the named agency.
Served on:
(11)_Mr. Richard B. Whi pant (12)_NC Dept. of'Environment, Health & Natural
(name) (agency) Resources
(13) 512 N. Salisbury Street Raleigh, NC 27604-1148
(address)
(14) This the 4thday of
(15)
May
19 93 .
When you have completed this form you ML;ST mail or deliver the ORIGINAL and one COPY to the Office of Adminis-
trative Hearings, P.O. Drawer 27417, Raleigh, \C 27611-7447.
H-06 (11/91)

NON NPDES FACILITY AND PERMIT DATA
RETRIEVE OPTION TRXID. 6OU KEY W00002702
PERSONAL
DATA FACILITY APPLYING
FOR PERMIT APP/PERMIT FEE-$ 400.00 REGION
FACILITY
NAME) ALCHEM, INC-RED
ROAD 8135 4
COUNTY> ROWAN 03
ADDRESS:
MAILING CREQUIRED) ENGINEER:
SALISBURY ENG. & PLANNING
STREET:
ROUTE 2 BOX 521-C
STREET:
516-A N. MAIN ST.
CITY:
RED SPRINGS ST NC
ZIP 28377 CITY:
SALISBURY ST NC ZIP 28144
TELEPHONE
919 843 2121
TELEPHONE:
704 633 8550
STATE CONTACT>
GRIFFIN
FACILITY
CONTACT RANDALL F. ANDREWS
TYPE OF PROJECT>
RECYCLE FACILITY
LAT: 0353352 LONG: 08025260
DATE APP
RCVD 10/19/92
N=NEW,M=MODIFICATION,R=REISSUE>
M
DATE ACKNOWLEDGED
10/20/92
DATE REVIEWED
01/04/93 RETURN DATE
REG COMM
REQS 11/09/92
DATE DENIED
/ / NPDES #-
REG COMM
RCVD 12/22/92
DATE RETURNED
/ / TRIB Q .0000 MGD
ADD INFO
REQS / /
OT AG CON REQS
11/09/92 TRIB DATE-
ADD INFO
RCVD / /
OT AG CON RCVD
03/15/93
END STAT
APP P 01/17/93
DATE ISSUED
04/08/93 DATE EXPIRE 12/31/94
FEE CODE( 9)1=(>1MGD),2=(>10KGD),3=(>1KGD),4=(<1KGD+SF),5=(S>300A),6=(S<=300A),
7=(SENDEL),8=(SEDEL),9=(CLREC),0=(NO FEE) DISC CODES 84 ASN/CHG PRMT
ENG CERT DATE 00/00/00 LAST NOV DATE / / CONBILLC )
COMMENTS: RANDALL ANDREWS 2/18/93 ADDED 5 LAGOONS
MESSAGE:

State of North Carolina
Department of Environment, Health and Natural Resources
Division of Environmental Management
512 North Salisbury Street • Raleigh, North Carolina 27604
James B. Hunt, Jr., Governor
Jonathan B. Howes, Secretary
April 8, 1993
Mr. Randall F. Andrews
Alchem, Incorporated
Route 2, Box 521-C
Red Springs, North Carolina 28377
A. Preston Howard, Jr., P. E.
Director
c
Subject: Permit No. WQ0002702 Amendment
Alchem, Incorporated
Industrial Recycle - Bauxite Process
Wastewater Recycle System
Rowan County
Dear Mr. Andrews:
In accordance with your application received October 19,1992, we are forwarding herewith Permit
No. WQ0002702 as amended, dated April 8, 1993, to Alchem, Incorporated for the continued operation
of the two (2) lagoon recycle system and the construction and operation of five (5) additional lagoons.
This permit shall void Permit No. WQ0002702 issued December 10, 1990 and shall be effective
from the date of issuance until December 31, 1994, and shall be subject to the conditions and limitations as
specified therein. Please pay particular attention to the monitoring requirements in this permit. Failure to
establish an adequate system for collecting and maintaining the required operational information will result
in future compliance problems.
If any parts, requirements, or limitations contained in this permit are unacceptable to you, you have
the right to request an adjudicatory hearing upon written request within 30 days following receipt of this
permit: This request must be in the form of a written petition; conforming to Chapter 150B of North
Carolina General Statutes, and filed with the Office of Administrative Hearings, P.O. Drawer 27447,
Raleigh, NC 27611-7447. Unless such demands are made this permit shall be final and binding.
Regional Offices
Asheville Fayetteville Mooresville Raleigh Washington Wilmington Winston-Salem
7041251-6208 919/486-1541 7041663-1699 919/571-4700 9191946-6481 919/395-3900 919/896-7007
Pollution Prevention Pays
P.O. Box 29535, Raleigh, North Carolina 27626-0535 Telephone [phone]
An Equal Opportunity Affirmative Action Employer

One set of approved plans and specifications is being forwarded to you. If you need additional
information concerting this matter, please contact Angela Y. Griffin at 919/ 733-5083.
Sincerely,
A. Presto oward, r., P.E.
Director
cc: Rowan County Health Department
Mooresville Regional Office, Water Quality Section
Mooresville Regional Office, Groundwater Section
Jack Floyd, Groundwater Section, Central Office
Salisbury Engineering & Planning
Facilities Assessment Unit
Training and Certificaton Unit

NORTH CAROLINA
ENVIRONMENTAL MANAGEMENT COMMISSION
DEPARTMENT OF ENVIRONMENT, HEALTH AND NATURAL RESOURCES
RALEIGH
RECYCLE SYSTEM PERMIT
In accordance with the provisions of Article 21 of Chapter 143; General Statutes of North Carolina
as amended, and other applicable Laws, Rules, and Regulations
PERMISSION IS HEREBY GRANTED TO
Alchem, Incorporated
Rowan County
FOR THE
continued operation of two (2) lagoons each approximtely 50' W x 200' L x 10' D and the construction
and operation of five additional lagoons, four (4) 180' W x 155' L x 20' D and one (1) 210 W x 155' L x
20' D to serve Alchem, Incorporated with no discharge of wastes to the surface waters, pursuant to the
application received October 19, 1992 and in conformity with the project plan, specifications, and other
supporting data subsequently filed and approved by the Department of Environment, Health and Natural
Resources and considered a part of this permit.
This permit shall void Permit No. WQ0002702 issued December 10, 1990 and shall be effective
from the date of issuance until December 31, 1994, and shall be subject to the following specified
conditions and limitations:
1. This permit shall become voidable unless the facilities are constructed in accordance with
the conditions of this permit, the approved plans, specifications, and other supporting data.
2. This permit is effective only with respect to the nature and volume of wastes described in
the application and other supporting data.
3. The facilities shall be properly maintained and operated at all times.
4. This permit is not transferable. In the event there is a desire for the facilities to change
ownership, or there is a name change of the Permittee, a formal permit request must be
submitted to the Division of Environmental Management accompanied by an application
fee, documentation from the parties involved, and other supporting materials as may be
appropriate. The approval of the request will be considered on its merits and may or may
not be approved.
5. Upon completion of construction of the five lagoons and prior to operation of this permitted
facility, a certification must be received from a professional engineer certifying that the
permitted facility has been installed in accordance with this permit, the approved plans and
specifications. Mail the Certification to the Permits and Engineering Unit, P.O. Box
29535, Raleigh, NC 27626-0535.

6. In, the event that the facilities fail to perform satisfactorily, including the creation of
nuisance conditions, the Permittee shall take immediate corrective action, including those as
may be required by this Division, such as the construction of additional or replacement
wastewater treatment or disposal facilities.
7. The Mooresville Regional Office, telephone number [phone], shall be notified at
least forty-eight (48) hours in advance of operation of the installed facilities so that an in -
place inspection can be made. Such notification to the regional supervisor shall be made
during the normal office hours from 8:00 a.m. until 5:00 p.m. on Monday through Friday,
excluding State Holidays.
8. The sludge generated from these treatment facilities must be disposed of in accordance with
General Statute 143-215.1 and in,a manner approved by the North Carolina Division of
Environmental Management.
9. The issuance of this permit shall not relieve the Permittee of the responsibility for damages
to surface or groundwaters resulting from the operation of this facility.
10. The facilities shall be effectively maintained and operated as a non -discharge system to
prevent the discharge of any wastewater resulting from the operation of this facility. ,
11. Diversion or bypassing of untreated wastewater from the treatment facilities is prohibited.
12. Freeboard in the lagoons shall not be less than two feet at any time.
13. Any monitoring deemed necessary by the Division of Environmental Management to insure
surface and ground water protection will be established and an acceptable sampling
reporting schedule shall be followed.
14. Adequate inspection, maintenance, and cleaning shall be provided by the Permittee to
insure proper operation of the subject facilities.
15. The Permittee or his designee shall inspect the wastewater recycle facilities to prevent
malfunctions and deterioration, operator errors and discharges which may cause or lead to
the release of wastes to the environment, a threat to human health, or a nuisance. The
Permittee shall keep an inspection log or summary including at least the date and time of
inspection, observations made, and any maintenance, repairs, or corrective actions taken
by the Permittee. This log of inspections shall be maintained by the Permittee for a period
of three years from the date of the inspection and shall be made available upon request to
the Division of Environmental Management or other permitting authority.
16. Any duly authorized officer, employee, or representative of the Division of Environmental
Management may, upon presentation of credentials, enter and inspect any property,
premises or place on or related to the recycle system at any reasonable time for the purpose
of determining compliance with this permit; may inspect or copy any records that must be
kept under the terms and conditions of this permit; or may obtain samples of groundwater,
surface water, or leachate.
17. The annual administering and compliance fee must be paid by the Permittee within thirty
(30) days after being billed by the Division. Failure to pay the fee accordingly may cause
the Division to initiate action to revoke this permit as specified by 15 NCAC 2H .0205
(c)(4),
18. Failure to abide by the conditions and limitations contained in this permit may subject the
Permittee to an enforcement action by the Division of Environmental Management in
accordance with North Carolina General Statute 143-215.6A to 143-215.6C.
2

19. The issuance of this permit does not preclude the Permittee from complying with any and
all statutes, rules, regulations, or ordinances which may be imposed by other government
agencies (local, state, and federal) which have jurisdiction.
20. A set of approved plans and specifications for the subject project must be retained by the
Permittee for the life of this project.
21. Noncompliance Notification:
The Permittee shall report by .telephone to the Mooresville Regional Office, telephone
number [phone], as soon as possible, but in no case more than 24 hours or on the
next working day following the occurrence or first knowledge of the occurrence of any of
the following:
a. Any occurrence at the wastewater treatment facility which results in the treatment of
significant amounts of wastes which are abnormal in quantity or characteristic, such
as the dumping of the contents of a basin or tank; the known passage of a slug of
hazardous substance through the facility; or any other unusual circumstances.
b. Any process unit failure, due to known or unknown reasons, that render the facility
incapable of adequate wastewater treatment such as mechanical or electrical failures
of pumps, aerators, compressors, etc.
c. Any failure of a pumping station, sewer line, of treatment facility resulting in a by-
pass directly to receiving waters without treatment of all or any portion of the
influent to such station or facility.
d. Any time that self -monitoring information indicates that the facility is not in
compliance with its permit limitations.
Persons reporting such occurrences by telephone shall also file a written report in letter
form within 15 days following first knowledge of the occurrence. This report must outline
the actions taken or proposed to be taken to ensure that the problem does not recur.
22. Upon classification of the facility by the Certification Commission, the Permittee shall
employ a certified wastewater treatment plant operator to be in responsible charge (ORC) of
the wastewater treatment facilities. The operator must hold a certificate of the type and
grade at least equivalent to or greater than the classification assigned to the wastewater
treatment facilities by the Certification Commission. The Permittee must also employ a
certified back-up operator of the appropriate type and grade to comply with the conditions
of Title 15A, Chapter 8A, .0202. The ORC of the facility must visit each Class I facility at
least weekly and each Class II, III, and IV facility at least daily, excluding weekends and
holidays, and must properly manage and document daily operation and maintenance of the
facility and must comply with all other conditions of Title 15A, Chapter 8A, .0202
23. The recycle lagoons shall not be located within 100 feet of water supply wells.
24. Prior to beginning waste disposal operations, three (3) monitor wells, one (1) upgradient
and two (2) downgradient, shall be installed to monitor groundwater quality. The well(s)
shall be constructed such that the water level in the well is never above or below the
screened (open) portion of the well at any time during the year. The exact location and
construction details for these wells shall be approved by the Mooresville Regional Office.
3

25. The monitoring wells shall be sampled initially after construction (and prior to waste
disposal operations) and thereafter every February and July for the following parameters:
IDS pH
SO4 Specific Conductivity
Aluminum Total Suspended*Solids
Volatile Organic Compounds - In February only (by Method 1 or Method 2 below).
Method 1:. Method 6230D (Capillary - Column), "Standard Methods For The
Examination of Water and Wastewater",17th ed., 1989.
Method 2: Method 502.2 "Methods For The Determination of Organic Compounds in
Drinking Water", U.S. EPA - 600/4488/039.
The measurement of water level must be made prior to sampling for the remaining
parameters.
The measuring points (top of well casing) of all monitoring wells shall be surveyed to
provide relative elevations of the measuring point for each monitoring well. These
elevations shall be provided to the Regional Hydrogeologist within 60 days after well
construction. The depth of water in each well shall be measured from the surveyed point
on top of the casing.
If any volatile organic compounds are detected by method 6230D, or the equivalent method
502.2, then EPA methods 604 and 611 must also be run to detect other organic compounds
which may be present. The results of all analyses specified in the monitoring requirements,
including 604 and 611 if required, must be submitted simultaneously.
The results of the sampling and analysis shall be sent to the N.C. Division of
Environmental Management on Form GW-59 (Compliance Monitoring Report Form) every
March and August.
26. The Compliance Boundary for the disposal system is specified by regulations in 15A
NCAC 2L, Groundwater Classifications and Standards. An exceedance of Groundwater
Quality Standards beyond the Compliance Boundary is subject to the penalty provisions
applicable under General Statute 143-215.6(1)a. The sale of property, by the Permittee,
which is within or contiguous to thedisposal site, may alter the location of the Compliance
Boundary.
For facilities permitted on or after December 30, 1983, the Compliance Boundary is
established at the lesser of 250 feet from the storage lagoon, or 50 feet within the property
boundary.
If the title to any property which may affect the location of the Compliance Boundary is
changed, the Permittee shall notify the DEM Director within 14 days. The Director shall
then establish a modified Compliance Boundary which will be done as a modification to the
Permit.
4

The REVIEW BOUNDARY for the disposal system is specified by regulations in 15
NCAC 2L, Groundwater Classifications and Standards. A REVIEW BOUNDARY is
established around disposal systems midway between the Compliance Boundary and the
perimeter of the waste disposal area. When the concentration of any substance equals or
exceeds the maximum allowable concentration of that substance at the REVIEW
BOUNDARY, as determined by monitoring, the permittee shall either (i) demonstrate,
through predictive calculations or modeling, that natural site conditions, facility design and
operational controls will prevent a violation of standards at the Compliance Boundary; or,
(ii) submit a plan for the alteration of existing site conditions, facility design or operational
controls that will prevent a violation of standards at the Compliance Boundary, and
implement that plan upon its approval by the Director.
27. The lagoon shall have a liner of natural material at least one (1) foot in thickness at all
locations with a hydraulic conductivity of no greater than 1 x 10-6 centimeters per second
when compacted. Following installation and inspection of the lagoon liner, and prior to
waste disposal operations, verification of the liner's compliance with hydraulic conductivity
and thickness specifications must be provided to the Division of Environmental
Management, Groundwater Section, by the project engineer.
28. All wells that are constructed for purposes of groundwater monitoring shall be constructed
in accordance with 15A NCAC 2C .0108 (Standards of Construction for Wells Other Than
Water Supply) and any other state and local laws and regulations pertaining to well
construction.
29. The Mooresville Regional Office, telephone number [phone] shall be notified at
least two weeks prior to the construction of any monitoring well so that an inspection can
be made of the monitoring well location. Such notification to the regional groundwater
supervisor shall be made during the normal office hours from 8:00 a.m. until 5:00 p.m. on
Monday through Friday, excluding state holidays.
30. Within sixty (60) days of completion of all monitoring wells, the permittee shall submit two
original copies of a scaled topographic map (scale no greater than 1:24000) signed and
sealed by a professional engineer or a registered land surveyor that indicates all of the
following information:
a. the location and identity of each monitoring well,
b. the location of the waste disposal system,
C. the location of a property boundaries;
d. the laititude and longitude of each monitoring well,
e. the relative elevation of the top of the well casing (which shall be
known as the "measuring point")
f. and the depth of water below the measuring point at the time the measuring
point is established.
All monitoring well locations and elevations shall be surveyed by a registered land
surveyor.
31. Upon completion of all well construction activities, a certification must be received from a
professional engineer certifying that themonitoring wells are located and constructed in
accordance with the Well Construction Standards (15A NCAC 2C) and this permit. This
certification should be submitted with copies of the Well Completion Form (GW-1) for
each well. Mail certification and the associated GW-1 forms to the Permits and Compliance
Unit, Groundwater SEction, P.O Box 29535, Raleigh, N.C., 27626-0535.

32. For the initial sampling of the well as specified elsewhere in the permit, the permittee shall
' submit a copy of the GW-1 form with the Compliance Monitoring Form (GW-59) for that
well. Compliance Monitoring Forms that do not include copies of the GW-1 form will be
returned to the initiation of enforcement activities pursuant to NC General Statutes 143-
i 215.6.
33. Any additional groundwater quality monitoring, as deemed necessary by the Division, shall
be provided.
34. The Permittee, at least six (6) months prior to the expiration of this permit, shall request its
extension. Upon receipt of the request, the Commission will review the adequacy of the
facilities described therein, and if warranted, will extend the permit for such period of time
and under such conditions and limitations as it may deem appropriate.
Permit issued this the 8th day of April, 1993
NORTH CAROLINA ENVIRONMENTAL MANAGEMENT' COMMISSION
CaJ � , k'O - " C
A. Preston goward, Jr., PIE., Director
Division of Uvironmental Management
By Authority of the Environmental Management Commission
Permit No. WQ0002702 Amendment
0

Permit No. WQ0002702 Amendment
• April 8, 1993
Engineer's Certification
V.
I, , as a duly registered Professional Engineer in the State of North
Carolina, having been authorized to observe (periodically, weekly, full time) the construction of the
project, for the
Project .Name
Location
Permittee hereby state that, to the best of my abilities, due care and diligence was used in the observation
of the construction such that the construction was observed to be built within substantial compliance and
intent of the approved plans and specifications.
Signature
Date
7
Registration No.

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U U U From:
North Carolina Department of Environment,
Health, and Natural Resources printed on Recycled Paper
M

a
MEMORANDUM
Wednesday, June 9, 1993
To: Ted Bush,
Assistant Chief for Operations
Groundwater Section
From: Donald Safri , P.E.,
Assistant C 'ef . e hnical Support
Subject: Alchem, Inc - Red Road Facility
Permit No. WQ0002702
Rowan County
In accordance with agreed upon procedures, please review the attached petition filed with
the Office of Administrative Hearings. Please evaluate the objections raised by the
permittee and provide me with your comments within ten (10) working days of your
receipt of this package.
The items under adjudication are:
Requirement for groundwater monitoring wells.
Miscellaneous comments:
cc: Rex Gleason, MRO (FYI)
If you have any questions, please contact Randy Jones
cc: Office of the Attorney General - Kathy Cooper
Donald Safrit
Randy Jones

PLEASE PRINT CLEARLY OR TYPE
STATE OF NORTH CAROLINA
COUNTY OF (1) Rowan
(2)
Alchem, Inc.
Rockwell, NC
Petitioner,
(Your Name)
(3)
V.
NC Department of Environment,
Health and Natural Resources
Respondent.
(The State Agency or Board about which you are
IN THE OFFICE OF
1ATIVE NE4RINGS
D
--c
C
PETITION `
-' t
FOR A
CONTESTED CASE HEARING
C, :>
r.:
complaining)
' 93 E ILTJNO o474+,.
I hereby ask for a contested case hearing as provided for by G.S. 1508-23 because the:
(4)NC Department of Environment, Health and Natural Resources has:
(name of aency)
(Briefly state facts showing how you believe you have been harmed by the state agency or board.)
We feel that there is no need for monitoring wells We have been required
�o place monitoring wells near the lagoons
(if more space is needed, use additional sheets and artach)
(5) (Check all that apply) Because of these facts, the agency has:
_deprived me of property;
_ordered me to pay a fine or civil penalty;
_otherwise substantially prejudiced my
rights; and based on these facts the agency
has exceeded its authority or jurisdiction;
(6) Date: May 4, 1993
_acted erroneously;
_failed to use proper procedure;
acted arbitrarily or capriciously; or
_failed to act as required by law or rule.
(7) Your telephone number: (919 )843-2121
(8) Print your address: 8135 Red Road Rockwell, NC 28138
Print your name: Alchem, Inc.
/ (10 Your signature:
You must mail or deliver a COPY to the State Agency named on line (3) of this form Please indicate below.
CEI: T wicATE lit'' SERVICE
I certify that this Petition has been served on the State Agency named below by depositing a copy of it with the Uni:ed States
Postal Service with sufficient postage OR by delivering'it to the named agency.
Served on:
(11) Mr. Richard B. Whisnant (12)_NC Dept. of Environment Health & Natural
(name) (agency) Resources
(13) 512 N. Salisbury Street Raleigh, NC 27604-1148
(address)
(14) This the 4thday of May
(15)
19 93 .
When you have completed this form you MUST mail or deliver the ORIGINAL and one COPY to the Office of Adminis-
trative Hearings, P.O. Drawer 27447, Raleigh, \C 27611-7447.
FI-06 (11/91)

ALCHEM, INC.
8135 RED ROAD
ROCKWELL, NORTH CAROLINA 28138
[phone]
April 20, 1993
Mr. Jack Floyd
State of North Carolina
Department of Environment, Health
and Natural Resources
Division of Environmental Management
512 N. Salisbury Street
Raleigh, NC 27604
Dear Mr. Floyd:
SUBJECT: Permit No. WQ0002702 Amendment
a,�i 1 t r;. ;;, �� 1 •�� n�
mom; f�E}
APR;
�n
RAL IGH, NO
I would like to present you with some information so that the requirement
for monitoring wells might be alleviated. Our process works as follows:
We buy an ore called Bauxite which is dug out of the ground in Georgia and
processed by drying and grinding before being shipped to us. We react the
Bauxite with Sulfuric Acid in a digestor. The Bauxite consists of Aluminum
Hydroxide and sand. The Aluminum Hydroxide reacts with the Sulfuric Acid
to form Aluminum Sulfate. After the reaction is complete, the agitation
is stopped and the highly concentrated hot Aluminum Sulfate is pumped to
a tank. The sand is washed three times to remove adhering Alum and the wash
water is collected and stored until the next reaction --at which time it is
used for water of dilution to dilute the hot concentrated Alum. After wash-
ing and after checking to make sure that the pH is high enough, the sand
slurry is pumped into the lagoon. All of the liquid in the lagoon is even-
tually brought back into the plant for dilution water. None is discharged.
At the point where the sand is put in the lagoon, only a minute amount of
Aluminum Sulfate is still present.
We have two water supply wells. They are approximately 300 feet deep. It
is approximately 90 feet to ground water. The entire area is on a mass of
thick, heavy, red clay. There are no rocks out cropping at all in the area.
We do not intend to build all of these lagoons at once. We may find that
we will never need all five. We only intend to build two at the present
moment. I feel that these would last for several years --possibly as much
as five years. Obviously, what we would like to do is wash the sand enough
so that it could be sold or used as a product. I am planning to start look-
ing into this at a later date. Naturally, we would consult with your waste
management people before doing anything. This would allow us to not have
to construct more than two more lagoons. Would you please advise me if you
need further information.

AL.CHEM, INC.
8135 RED ROAD
ROCKWELL, NORTH CAROLINA 28138
[phone]
Mr. Jack Floyd
NC Department of Environment,
Health and Natural Resources
Page Two
April 20, 1993
Very truly yours,
ALCHEM, INC.
Randall F. Andrews,
President
sj
cc Mr. David Eudy, Mooresville Regional Office