WQ0002702_Regional Office Historical File Pre 2018 (25)

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INC. v✓-Z���.<< �
ALCHEM,
Corporate Office Sales and Manu£acturin
C
2042 Buie Philadelphus Road I ed Road
Red Springs, NC 28377 i k� 28138
Tel. [phone] — 800-522-2944 —�vz{-27 - > 62-2586
Fax 9io-843-5789 F, ' 79-8418
[e-mail] MAR _ 9 20t�oi oo.com
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Prehearing Statement DWQ-A. t-!
10 EHR 0296
1. The statutes allow for financial distress as a defense against paying these fines.
ALCHEM has experienced an embezzlement of approximately $400,000 by a
former employee. ALCHEM has cut employment by five people so as to try and
accumulate money to pay. Additionally, ALCHEM will not be able to complete
the envirommental projects if we have to pay this unusually large fine. This is
primarily a record keeping fine. We do not feel that any environmental damage
was done at all as a result of our actions. The two people who were in charge of
this project have both been fired, at the time of ALCHEM last fiscal year they
only had $19,000.00 in net worth.
2. Number one is a brief statement.
3. Randall Andrews -President of ALCHEM
Andrew Pitner-Head of Aquifer Protection-NCDENR
4. I wish to pursue discovery.
5. 1 request that a hearing be set at the Rowan County Courthouse is Salisbury, NC.
6. One day
7. The attorney that will handle this case is Sean Walker in Salisbury, NC.
8. The date is fine.
9. None
Randall F. Andrews
)-z -10
Date

FILED
OFFICE OF
ADMIN'IS"rRATIVE HEARINGS
Feh OS 9 32 AM 2010
STATE OF NORTH CAROLINA IN THE OFFICE OF
ADMINISTRATIVE HEARINGS
COUNTY OF ROWA 10 EHR 0296
ALCHEM Inc. Q W
Petitioner, I
V.
[MAR — 9 2010 � ORDER FOR PREHEARING
_ STATEMENTS
NCDENR DWQ - A uifer Protection
Respondent.
In order to permit the prompt preparation of this case for hearing,
IT IS HEREBY ORDERED, pursuant to 26 NCAC 3 .0104, that each party file with
the Office of Administrative Hearings and serve upon the other parties a Prehearing
Statement containing your present position with regard to the following:
1. The issues to be resolved, and the statutes, rules, and legal precedent involved;
2. A brief statement of the facts and reasons supporting the party's position on each
issue in dispute;
3. A list of proposed witnesses;
4. Whether you wish to pursue discovery. If so, the length of time required if
different from the time set in the Scheduling Order;
5. Requested location of hearing; if different from the location set in the Scheduling
Order;
6. Estimated length of hearing;
7. If you do not have an attorney, your home and business addresses and telephone
numbers;
8. The date by which you will be ready to have a hearing in this case if different
from the date set in the Scheduling Order;
9. Other special considerations.
This Prehearing Statement must be filed and served within 30 days of the date of
this ORDER.
This the 5th day of February, 2010.
Becher R. Gray
Administrative Law Jude

On this date mailed to:
Randall Andrews
ALCHEM Inc.
2042 Buie Philadlephus Road
Red Springs, NC 28377
PETITIONER
Amanda Foster
Department of Justice
Attorney General's Office
Environmental Division
9001 Mail Service Center
Raleigh, NC 27699-9001
RESPONDENT
This the 5th day of February, 2010.
Kim Hausen
Chief Hearings Clerk
40fe of Administrative Hearings
6714 Mail Service Center
Raleigh NC 27699-6714
919/431-3000

NCD NR
North Carolina Department of Environment and Natural Resources
Division of `.'vaie� Quality
Beverly Eaves Perdue Coleen -i -allins Dee Freeman
Governor Direct:. , Secretary
December 23, 2009
CERTIFIED MAIL
RETURN RECEIPT REQUESTED
Mr. Randall Andrews, Registered Agent
Alchem Incorporated
2042 Buie Philadelphus Road
Red Springs, NC 28377
and
Alchem Incorporated
8135 Red Road
Rockwell, NC 28138
SUBJECT: Assessment of Civil Penalty for
Violations of NC General Statute 143-215.1,
Non -Discharge Permit No. WQ0016338,
and Non -Discharge permit No. WQ0002702
Case No. PC-2009-0121
NOV-2009-PC-0470
Rowan County
Dear Mr. Andrews:
This letter transmits notice of a civil penalty assessed against Alchem Incorporated in the amount of
$27,024.65, which includes $1,024.65 in investigative costs. Attached is a copy of the assessment
document explaining this penalty.
This action was taken under the authority vested in me by delegation provided by the Secretary of the
Department of Environment and Natural Resources. Any continuing violation(s) may be the subject of a
new enforcement action, including an additional penalty.
Within thirty days of receipt of this notice, you must do one of the following three items:
1. Submit payment of the penalty:
Payment should be made directly to the order of the Department of Environment and Natural
Resources (do not include waiver form). Payment of the penalty will not foreclose further
Division of Water Quality / Aquifer Protection Section / Mooresville Regional Office
610 East Center Avenue, Suite 301, Mooresville, North Carolina 28115 One
Phone: [phone] Fax: [phone] Customer Service: 1-877-623-6748 NorthCarolina
Internet: www.ncwaterquality.org AWUM4

Alchem Incorporated, Assessment
WQ0016338/ WQ0002702
Page 2
enforcement action for any continuing or new violation(s). Please submit payment to the
attention of:
Mr. Ed Hardee
DWQ/Aquifer Protection Section
1636 Mail Service Center
Raleigh, North Carolina 27699-1636
OR
2. Submit a written request for remission including a detailed justification for such
request:
Please be aware that a request for remission is limited to consideration of the five factors
listed below as they may relate to the reasonableness of the amount of the civil penalty
assessed. Requesting remission of an Assessment of Civil Penalty is not the proper
procedure for contesting whether the violation(s) occurred or the accuracy of any of the
factual statements contained in the civil penalty assessment document. Because a remission
request forecloses the option of an administrative hearing, such a request must be
accompanied by a waiver of your right to an administrative hearing and a stipulation and
agreement that no factual or legal issues are in dispute. Please prepare a detailed statement
that establishes why you believe the civil penalty should be remitted, and submit it to the
Division of Water Quality at the address listed below. In determining whether a remission
request will be approved, the following factors shall be considered:
(1) Whether one or more of the civil penalty assessment factors in NCGS 143B-282.1(b)
were wrongfully applied to the detriment of the violator;
(2) Whether the violator promptly abated continuing environmental damage resulting from
the violation;
(3) Whether the violation was inadvertent or a result of an accident;
(4) Whether the violator has been assessed civil penalties for any previous violations; or
(5) Whether payment of the civil penalty will prevent payment for the remaining
necessary remedial actions.
Please note that all evidence presented in support of your request for remission must be
submitted in writing. The Director of the Division of the Division of Water Quality will review
your evidence and inform you of her decision in the matter of your remission request. The
response will provide details regarding the case status, directions for payment, and provision
for further appeal of the penalty to the Environmental Management Commission's Committee
on Civil Penalty Remissions (Committee) Please be advised that the Committee cannot
consider information that was not part of the original remission request considered by the
Director. Therefore, it is very important that you prepare a complete and thorough statement
in support of your request for remission.

Alchem Incorporated, Assessment Page 4
Alchem Incorporated, Assessment Page 3
WQ0016338/ W00002702
In order to request remission, you must complete and submit the enclosed "Request for
Remission of Civil Penalties, Waiver of Right to an Administrative Hearing, and Stipulation of
Facts" form within thirty (30) days of receipt of this notice. The Division of Water Quality also
requests that you complete and submit the enclosed "Justification for Remission Request."
Both forms should be submitted to the following address:
Mr. Ed Hardee
DWQ/Aquifer Protection Section
1636 Mail Service Center
Raleigh, North Carolina 27699-1636
9W
3. File a petition for an administrative hearing with the Office of Administrative Hearings:
If you wish to contest any statement in the attached assessment document you must file a
petition for an administrative hearing. You may obtain the petition form from the Office of
Administrative Hearings. You must file the petition with the Office of Administrative Hearings
within thirty (30) days of receipt of this notice. A petition is considered filed when it is received
in the Office of Administrative Hearings during normal office hours. The Office of
Administrative Hearings accepts filings Monday through Friday between the hours of 8:00
a.m. and 5:00 p.m., except for official state holidays. The original and one (1) copy of the
petition must be filed with the Office of Administrative Hearings. The petition may be faxed -
provided the original and one copy of the document is received in the Office of Administrative
Hearings within five (5) business days following the faxed transmission.
The mailing address for the Office of Administrative Hearings is:
Office of Administrative Hearings
6714 Mail Service Center
Raleigh, North Carolina 27699-6714
AND
A copy of the petition must also be served on DENR as follows:
Mrs. Mary Penny Thompson, General Counsel
Department of Environment and Natural Resources
1601 Mail Service Center
Raleigh, North Carolina 27699-1601
Please indicate the enforcement case number (as found on page one of this letter) on the petition. Failure
to exercise one of the options above within thirty (30) days of receipt of this letter, as evidenced by an
internal date/time received stamp (not a postmark), will result in this matter being referred to the Attorney
General's Office for collection of the penalty through a civil action. Please be advised that additional
penalties may be assessed for violations that occur after the review period of this assessment.

STATE OF NORTH CAROLINA
COUNTY OF ROWAN
IN THE MATTER OF: )
ALCHEM INCORPORATED )
FOR VIOLATIONS OF )
PERMIT NO. WQ0016338, )
PERMIT NO. WO0002702 )
AND N.C.G.S. 143-215.1 )
FOR FAILING TO PROPERLY )
OPERATE AND MAINTAIN )
SURFACE DISPOSAL )
PROGRAM AND WASTEWATER)
RECYCLE SYSTEM )
NORTH CAROLINA
ENVIRONMENTAL MANAGEMENT COMMISSION
File No. PC-2009-0121
FINDINGS AND DECISION
AND ASSESSMENT
OF CIVIL PENALTIES
Acting pursuant to North Carolina General Statute (G.S.) 143-215.6(A) and the delegation provided by the
Secretary of the Department of Environment and Natural Resources, I, Coleen Sullins, Director of the
Division of Water Quality (DWQ), make the following:
FINDINGS OF FACT:
A. Alchem Incorporated (hereinafter referred to as Alchem) is a corporation organized and existing
under the laws of the State of North Carolina. Alchem operates a wastewater recycle system and a
bauxite residuals monofill surface disposal program at its facility in Rockwell, North Carolina, Rowan
County. The registered agent for Alchem is Randall Andrews.
B. Non -Discharge Permit No. WQ0002702 was issued to Alchem on Dec. 28, 2004, and it allows
Alchem to operate an industrial wastewater recycle system. Permit WQ0002702 expires on
November 30, 2012.
C. Non -Discharge Permit No. WQ0016338 was issued to Alchem on December 28, 2006, covering
operation of the bauxite residuals monofill surface disposal program. The permit was adjudicated by
Alchem. A settlement agreement between Alchem and DWQ was filed on November 27, 2007,
making the permit effective. Permit WQ0016338 expires on November 30, 2014.
D. Said permits contain the following relevant conditions and Alchem actions:
1. Permit WQ0002702, condition 13, requires the recycle system water be kept at a pH of not less
than 6 Standard Units as it goes to the storage lagoons. Information submitted by Alchem
indicates that Lagoon#1 was cleaned out in June 2008 with subsequent production of residuals
going to the same Lagoon through the fall. Production batches were not tested for pH, but the
Lagoon #1 pH values after receiving the batches were consistently around 3.4 standard units
reflecting inability to maintain the appropriate pH of the recycle system water.
2. Permit WQ0016338, condition 111.2. requires proper records be maintained by the permittee
tracking all application activities, including location of residuals utilization and volume of residuals
disposed. Alchem's 2008 annual report and associated submittals did not identify the location
and volume of residuals disposed during 2008.
3. Permit WQ0016338, condition 111.3. requires residuals analyses for metals twice per year.
Alchem provided no record of metals analyses conducted for 2008.
4. Permit WO0016338, condition 111.4. requires TCLP analyses annually. Alchem provided no
record of TCLP analyses for 2008.
5. Permit WO0016338, condition 111.6. requires proper records be maintained tracking all application

activities associated with the surface disposal unit including but not limited to date and freeboard
measurements, and source and date of residuals disposal. Alchem's 2008 annual report and
associated submittals did not include dated freeboard measurements, cumulative volume of
residuals, remaining surface disposal unit volume and lifespan.
6. Permit WQ0016338, condition 111.7. requires three copies of all required information, monitoring
and reporting requirements as specified in Conditions 111.2., 111.3., 111.4., 111.5, and 111.6., to be
submitted annually on or before March 1 of the following year. Alchem's 2008 annual report was
submitted in incomplete form on August 4, 2009 as detailed below.
E. On June 2, 2009, the DWQ issued a Notice of Violation (NOV)/Notice of Intent (NOI) to Enforce to
Alchem, identifying violations of Non -Discharge Permits WQ0016338 and WQ0002702.
F. The June 3, 2009, NOV/NOI was received by Alchem by certified mail with return receipt. The
response date to this NOV/NOI was June 30, 2009.
G. On July 23, 2009, the DWQ issued an addendum to the June 2, 2009 NOV/NOI pointing out a
missed response deadline, asking for more information, and giving another response deadline of
August 6, 2009.
H. On August 4, 2009, Alchem submitted an annual report for 2008. This document did not have the
data required in the aforementioned permit conditions. Specifically, the report did not contain records
tracking the location and volume of residuals disposed of in 2008 as required in Permit W00016338
condition 111.2.; there were no analyses submitted as required in Permit WQ0016338 conditions 111.3
and 111.4., and there were no records submitted for conditions 111.6. a., d., e., and f.
I. On October 13, 2009 DWQ issued another request for additional information for the NOV NOI issued
on June 2, 2009. The deadline for the request was October 30, 2009.
J. On October 30, 2009, Alchem faxed DWQ a request for an extension due to family illness.
K. On November 5, 2009, the DWQ faxed an extension letter giving Alchem a deadline of November
19, 2009.
L. On November 25, 2009, DWQ received a fax from Randall Andrews for TCLP analyses of "sand"
that was collected on November 8, 2009.
M. Staff costs and expenses associated with observing the violations, defining their nature and bringing
enforcement action totaled $1024.65.
Based upon the above Findings of Fact, I make the following:
II. CONCLUSIONS OF LAW:
A. Alchem is a "person" within the meaning of G.S.143-215.6A pursuant to G.S. 143-212(4).
B. Permit No. WQ0002702 is required by N.C.G.S. 143-215.1. The permit was issued on December 28,
2004, and permit WQ0002702 expires on November 30, 2012.
C. Permit No. WQ0016338 is required by N.C.G.S. 143-215.1. The permit was issued on December 28,
2006, and became effective and enforceable after a settlement agreement on November 27, 2007.
Permit WQ0016338 expires on November 30, 2014.

D. Alchem violated N.C.G.S. 143-215.1 and Permit WQ0002702 to the manner and extent as described in
Condition 13 by failing to demonstrably maintain the pH of the recycled water above 6 standard units as
it goes to the storage lagoons.
E. Alchem violated N.C.G.S. 143-215.1 and Permit WQ0016338 to the manner and extent as described in
Condition 111.2., by failing to maintain proper records tracking all application activities, including location
of residuals utilization and volume of residuals disposed.
F. Alchem violated N.C.G.S. 143-215.1 and Permit WQ0016338 to the manner and extent as described in
Condition 111.3., by not conducting residuals analyses for metals twice in 2008.
G. Alchem violated N.C.G.S. 143-215.1 and Permit WQ0016338 to the manner and extent as described in
Condition 111.4., by failing to conduct an annual TCLP analysis in 2008.
H. Alchem violated N.C.G.S. 143-215.1 and Permit WQ0016338 to the manner and extent as described in
Condition 111.6., by failing to maintain proper records tracking all application activities associated with
the surface disposal unit including but not limited to date and freeboard measurements, source and
date of residuals disposed of.
Alchem violated N.C.G.S. 143-215.1 and Permit WQ0016338 to the manner and extent as described in
Condition 111.7. by failing to submit a complete annual report covering 2008 by March 1, 2009.
General Statute 143-215.6A(a)(2) provides that a civil penalty of not more than $25,000.00 per violation
may be assessed against a person who violates or fails to act in accordance with the terms, conditions,
or requirements of a permit required by N.C.G.S. 143-215.1.
K. General Statute 143-215.3(a)(9) provides that the reasonable costs of any investigation, inspection or
monitoring survey may be assessed against a person who violates any regulations, standards, or
limitations adopted by the Environmental Management Commission or violates any terms or conditions
of any permit issued pursuant to N.C.G.S. 143-215.1, or special order or other document issued
pursuant to N.C.G.S. 143-215.2.
Based upon the above Findings of Fact and Conclusions of Law, I make the following:
III. DECISIONS:
Pursuant to N.C.G.S. 143-215.6A in determining the amount of the penalty, I have taken into account the
Findings of Fact and Conclusions of Law and considered all the factors listed in N.C.G.S. 143B-282.1.
Accordingly, Alchem is hereby assessed a civil penalty of:
$ 8,000.00 for one violation of N.C.G.S. 143-215.1 and Permit No. WQ0002702 by failing
to perform to permit standards as required by Condition 13, which requires the
recycled water to be maintained at a pH of not less than 6.0 standard units as
it leaves the wash area and goes to the storage lagoon.
$ 6,000.00 for one violation of N.C.G.S. 143-215.1 and Permit No. WQ0016338,
Condition 111.2. by failing to maintain proper records tracking all application
activities, including location of residuals utilization and volume of residuals
disposed.

$ 4,000.00 for one violation of N.C.G.S. 143-215.1 and Permit No. WQ0016338,
Condition 111.3. by failing to conduct residuals analyses for metals twice in
2008.
$ 2,000.00 for one violation of N.C.G.S. 143-215.1 and Permit No. WQ0016338,
Condition 111.4. by failing to conduct an annual TCLP analysis in 2008
$ 4,000.00 for one violation of N.C.G.S. 143-215.1 and Permit No. WQ0016338,
Condition 111.6. by failing to maintain proper records tracking all application
activities associated with the surface disposal unit including but not limited to
date and freeboard measurements, source and date of residuals disposed of.
$ 2,000.00 for one violation of N.C.G.S. 143-215.1 and Permit No. WQ0016338,
Condition 111.7., which requires reporting with three copies of all required
information, monitoring and reporting requirements as specified in Conditions
111.2., 111.3., 111.4., and 111.5., to be submitted annually on or before March 1 of
the following year.
$ 26,000.00 TOTAL CIVIL PENALTY, which is 17 percent of the maximum penalty authorized
by G.S. 143-215.6A.
$ 1,024.65 Investigation and Enforcement costs assessed.
$ 27,024.65 TOTAL AMOUNT DUE
IV. NOTICE:
I reserve the right to assess civil penalties and investigative costs for any continuing violations occurring
after the assessment period indicated above. Each day of a continuing violation may be considered a
separate violation subject to a maximum $25,000.00 per day penalty. Civil penalties and investigative cost
may be assessed for any other rules and statutes for which penalties have not yet been assessed.
V. TRANSMITTAL:
These Findings of Fact, Conclusions of Law and Decision shall be transmitted to Alchem, in
accordance with N.C.G.S. 143-215.6(A)(d).
(Date) for Coleen Sullins

STATE OF NORTH CAROLINA
DEPARTMENT OF ENVIRONMENT
AND NATURAL RESOURCES
COUNTY OF ROWAN
IN THE MATTER OF ASSESSMENT)
OF CIVIL PENALTIES AGAINST )
ALCHEM INCORPORATED 1
Permit No. WQ0016338 and )
Permit No. WQ00002702 )
WAIVER OF RIGHT TO AN
ADMINISTRATIVE HEARING AND
STIPULATION OF FACTS
FILE NO. PC-2009-0121
Having been assessed civil penalties totaling $27,024.65 for violation(s) as set forth in the assessment
document of the Division of Water Quality, Aquifer Protection Section dated December 23, 2009, the
undersigned, desiring to seek remission of the civil penalties, does hereby waive the right to an
administrative hearing in the above -stated matter and does stipulate that the facts are as alleged in the
assessment document. The undersigned further understands that all evidence presented in support of
remission of this civil penalty must be submitted to the Director of the Division of Water Quality within 30
days of receipt of the notice of assessment. No new evidence in support of a remission request will be
allowed after 30 days from the receipt of the notice of assessment.
This the day of
ADDRESS
TELEPHONE
20
Signature

j 6�9f�' Ti
NC®ENR
North Carolina Department of Environment and Natural Resources
Division of Water Quality
Beverly Eaves Perdue Coleen H. Sullins
Governor Director
CERTIFIED MAIL.
RETURN RECEIPT REQUESTED
Mr. Randall Andrews, Registered Agent
Alchem Incorporated
2042 Buie Philadelphus Road
Red Springs, NC 28377
and
Alchem Incorporated
8135 Red Road
Rockwell, NC 28138
Dear Mr. Andrews:
Dee Freeman
Secretary
December 23, 2009
SUBJECT: Assessment of Civil Penalty for
Violations of NC General Statute 143-215.1,
Non -Discharge Permit No. WQ0016338,
and Non -Discharge permit No. WQ0002702
Case No. PC-2009-0121
NOV-2009-PC-0470
Rowan County
This letter transmits notice of a civil penalty assessed against Alchem Incorporated in the amount of
$27,024.65, which includes $1,024.65 in investigative costs. Attached is a copy of the assessment
document explaining this penalty.
This action was taken under the authority vested in me by delegation provided by the Secretary of the
Department of Environment and Natural Resources. Any continuing violation(s) may be the subject of a
new enforcement action, including an additional penalty.
Within thirty days of receipt of this notice, you must do one of the following three items:
1. Submit payment of the penalty:
Payment should be made directly to the order of the Department of Environment and Natural
Resources (do not include waiver form). Payment of the penalty will not foreclose further
Division of Water Quality / Aquifer Protection Section / Mooresville Regional Office One
610 East Center Avenue, Suite 301, Mooresville, North Carolina 28115 NorthCarofina
Phone: [phone] Fax: [phone] Customer Service:1-877-623-6748
Internet: www.ncwaterquality.org VVaturally

Alchem 1'ncorporeted;' 'Assessment
F
WQ0016338/ WQ0002702
Page 2
enforcement action for any continuing or new violation(s). Please submit payment to the
attention of:
Mr. Ed Hardee
DWQ/Aquifer Protection Section
1636 Mail Service Center
Raleigh, North Carolina 27699-1636
OR
2. Submit a written request for remission including a detailed justification for such
request:
Please be aware that a request for remission is limited to consideration of the five factors
listed below as they may relate to the reasonableness of the amount of the civil penalty
assessed. Requesting remission of an Assessment of Civil Penalty is not the proper
procedure for contesting whether the violation(s) occurred or the accuracy of any of the
factual statements contained in the civil penalty assessment document. Because a remission
request forecloses the option of an administrative hearing, such a request must be
accompanied by a waiver of your right to an administrative hearing and a stipulation and
agreement that no factual or legal issues are in dispute. Please prepare a detailed statement
that establishes why you believe the civil penalty should be remitted, and submit it to the
Division of Water Quality at the address listed below. In determining whether a remission
request will be approved, the following factors shall be considered:
(1) Whether one or more of the civil penalty assessment factors in NCGS 143B-282.1(b)
were wrongfully applied to the detriment of the violator;
(2) Whether the violator promptly abated continuing environmental damage resulting from
the violation;
(3) Whether the violation was inadvertent or a result of an accident;
(4) Whether the violator has been assessed civil penalties for any previous violations; or
(5) Whether payment of the civil penalty will prevent payment for the remaining
necessary remedial actions.
Please note that all evidence presented in support of your request for remission must be
submitted in writing. The Director of the Division of the Division of Water Quality will review
your evidence and inform you of her decision in the matter of your remission request. The
response will provide details regarding the case status, directions for payment, and provision
for further appeal of the penalty to the Environmental Management Commission's Committee
on Civil Penalty Remissions (Committee). Please be advised that the Committee cannot
consider information that was not part of the original remission request considered by the
Director. Therefore, it is very important that you prepare a complete and thorough statement
in support of your request for remission.

~ Alchem Incorporated, Assessment
WQ0016338/ W00002702
Page 3
In order to request remission, you must complete and submit the enclosed "Request for
Remission of Civil Penalties, Waiver of Right to an Administrative Hearing, and Stipulation of
Facts" form within thirty (30) days of receipt of this notice. The Division of Water Quality also
requests that you complete and submit the enclosed "Justification for Remission Request."
Both forms should be submitted to the following address:
Mr. Ed Hardee
DWQ/Aquifer Protection Section
1636 Mail Service Center
Raleigh, North Carolina 27699-1636
OIL
3. File a petition for an administrative hearing with the Office of Administrative Hearings:
If you wish to contest any statement in the attached assessment document you must file a
petition for an administrative hearing. You may obtain the petition form from the Office of
Administrative Hearings. You must file the petition with the Office of Administrative Hearings
within thirty (30) days of receipt of this notice. A petition is considered filed when it is received
in the Office of Administrative Hearings during normal office hours. The Office of
Administrative Hearings accepts filings Monday through Friday between the hours of 8:00
a.m. and 5:00 p.m., except for official state holidays. The original and one (1) copy of the
petition must be filed with the Office of Administrative Hearings. The petition may be faxed -
provided the original and one copy of the document is received in the Office of Administrative
Hearings within five (5) business days following the faxed transmission.
The mailing address for the Office of Administrative Hearings is:
Office of Administrative Hearings
6714 Mail Service Center
Raleigh, North Carolina 27699-6714
AND
A copy of the petition must also be served on DENR as follows:
Mrs. Mary Penny Thompson, General Counsel
Department of Environment and Natural Resources
1601 Mail Service Center
Raleigh, North Carolina 27699-1601
Please indicate the enforcement case number (as found on page one of this letter) on the petition. Failure
to exercise one of the options above within thirty (30) days of receipt of this letter, as evidenced by an
internal date/time received stamp (not a postmark), will result in this matter being referred to the Attorney
General's Office for collection of the penalty through a civil action. Please be advised that additional
penalties may be assessed for violations that occur after the review period of this assessment.

Alchem Incorporated, Assessment
WQ0016338/ WQ0002702
Page 4
If you have any questions, please contact Andrew Pitner at [phone] or Mr. Ed Hardee at (919) 715-
6189.
Sincerely,
for Coleen Sullins
Director, Division of Water Quality
ATTACHMENT
DER:SE6TION COMPLETE THIS SECTION ON DELIVERY
■ Complete items 1, 2, and 3. Also complete Ignature
cc: Ed Hardee. item 4 if Restricted Delivery is desired. /
X
ra'S 9'�` Q- ■ Print your name and address on the reverse ( �/L ,iG� `� ❑ Agent
APS Centr so that we can return the card to you. \ Addressee
■ Attach this card -to the back of.the mailpiece, Received by (Printed N C. Date of Delivery
APS Centr Cron the front -if 'space permits:-,
1. Article Addressed to: D. Is delive gr¢i091? m Item 1? ❑ Yes
If Y ter d ad a low: ❑ No
ALCHEM INCORPORATED
8135 RED ROAD DEC 2 g 2009
ROCKWELL NC 281338
aps/ch 12/23/09 3. rvic Type
rtifi Mail ❑ 4� i
-- - - -- -- ---- - - - --- - —_ istered'`®' gym Ipt for Merchandise
❑ Insu tv(aih., C.
2. 4. Restricted Delivery? (Extra Fee) ❑ Yes
`1140 :0002 2716'15�89 `
PS Form 3811, February 2004 Domestic Return Receipt C
-Ol -i!C i o2sss-o2-M-1 540
UNITED STATES P0STAL.SERv1C>r;.:., i�First-Class Mail
s
Postage,&Fees Paid,
LISPS
t, ;Permit No 00D. s .,
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STATE OF NORTH CAROLINA
COUNTY OF ROWAN
IN THE MATTER OF: )
ALCHEM INCORPORATED )
FOR VIOLATIONS OF )
PERMIT NO. WQ0016338, )
PERMIT NO. WQ0002702 )
AND N.C.G.S. 143-215.1 )
FOR FAILING TO PROPERLY )
OPERATE AND MAINTAIN )
SURFACE DISPOSAL )
PROGRAM AND WASTEWATER)
RECYCLE SYSTEM )
NORTH CAROLINA
ENVIRONMENTAL MANAGEMENT COMMISSION
File No. PC-2009-0121
FINDINGS AND DECISION
AND ASSESSMENT
OF CIVIL PENALTIES
Acting pursuant to North Carolina General Statute (G.S.) 143-215.6(A) and the delegation provided by the
Secretary of the Department of Environment and Natural Resources, I, Coleen Sullins, Director of the
Division of Water Quality (DWQ), make the following:
FINDINGS OF FACT:
A. Alchem Incorporated (hereinafter referred to as Alchem) is a corporation organized and existing
under the laws of the State of North Carolina. Alchem operates a wastewater recycle system and a
bauxite residuals monofill surface disposal program at its facility in Rockwell, North Carolina, Rowan
County. The registered agent for Alchem is Randall Andrews.
B. Non -Discharge Permit No. WQ0002702 was issued to Alchem on Dec. 28, 2004, and it allows
Alchem to operate an industrial wastewater recycle system. Permit WQ0002702 expires on
November 30, 2012.
C. Non -Discharge Permit No. WQ0016338 was issued to Alchem on December 28, 2006, covering
operation of the bauxite residuals monofill surface disposal program. The permit was adjudicated by
Alchem. A settlement agreement between Alchem and DWQ was filed on November 27, 2007,
making the permit effective. Permit WQ0016338 expires on November 30, 2014.
D. Said permits contain the following relevant conditions and Alchem actions:
1. Permit WQ0002702, condition 13, requires the recycle system water be kept at a pH of not less
than 6 Standard Units as it goes to the storage lagoons. Information submitted by Alchem
indicates that Lagoon#1 was cleaned out in June 2008 with subsequent production of residuals
going to the same Lagoon through the fall. Production batches were not tested for pH, but the
Lagoon #1 pH values after receiving the batches were consistently around 3.4 standard units
reflecting inability to maintain the appropriate pH of the recycle system water.
2. Permit WQ0016338, condition 111.2. requires proper records be maintained by the permittee
tracking all application activities, including location of residuals utilization and volume of residuals
disposed. Alchem's 2008 annual report and associated submittals did not identify the location
and volume of residuals disposed during 2008.
3. Permit WQ0016338, condition 111.3. requires residuals analyses for metals twice per year.
Alchem provided no record of metals analyses conducted for 2008.
4. Permit WQ0016338, condition 111.4. requires TCLP analyses annually. Alchem provided no
record of TCLP analyses for 2008.
5. Permit WQ0016338, condition 111.6. requires proper records be maintained tracking all application

activities associated with the surface disposal unit including but not limited to date and freeboard
measurements, and source and date of residuals disposal. Alchem's 2008 annual report and
associated submittals did not include dated freeboard measurements, cumulative volume of
residuals, remaining surface disposal unit volume and lifespan.
6. Permit WQ0016338, condition 111.7. requires three copies of all required information, monitoring
and reporting requirements as specified in Conditions 111.2., 111.3., 111.4., 111.5, and 111.6., to be
submitted annually on or before March 1 of the following year. Alchem's 2008 annual report was
submitted in incomplete form on August 4, 2009 as detailed below.
E. On June 2, 2009, the DWQ issued a Notice of Violation (NOV)/Notice of Intent (NOI) to Enforce to
Alchem, identifying violations of Non -Discharge Permits WQ0016338 and WQ0002702.
F. The June 3, 2009, NOV/NOI was received by Alchem by certified mail with return receipt. The
response date to this NOV/NOI was June 30, 2009.
G. On July 23, 2009, the DWQ issued an addendum to the June 2, 2009 NOV/NOI pointing out a
missed response deadline, asking for more information, and giving another response deadline of
August 6, 2009.
H. On August 4, 2009, Alchem submitted an annual report for 2008. This document did not have the
data required in the aforementioned permit conditions. Specifically, the report did not contain records
tracking the location and volume of residuals disposed of in 2008 as required in Permit WQ0016338
condition 111.2.; there were no analyses submitted as required in Permit WQ0016338 conditions 111.3
and 111.4., and there were no records submitted for conditions 111.6. a., d., e., and f.
I. On October 13, 2009 DWQ issued another request for additional information for the NOV NOI issued
on June 2, 2009. The deadline for the request was October 30, 2009.
J. On October 30, 2009, Alchem faxed DWQ a request for an extension due to family illness.
K. On November 5, 2009, the DWQ faxed an extension letter giving Alchem a deadline of November
19, 2009.
L. On November 25, 2009, DWQ received a fax from Randall Andrews for TCLP analyses of "sand"
that was collected on November 8, 2009.
M. Staff costs and expenses associated with observing the violations, defining their nature and bringing
enforcement action totaled $1024.65.
Based upon the above Findings of Fact, I make the following:
II. CONCLUSIONS OF LAW:
A. Alchem is a "person" within the meaning of G.S.143-215.6A pursuant to G.S. 143-212(4).
B. Permit No. W00002702 is required by N.C.G.S. 143-215.1. The permit was issued on December 28,
2004, and permit WQ0002702 expires on November 30, 2012.
C. Permit No. WQ0016338 is required by N.C.G.S. 143-215.1. The permit was issued on December 28,
2006, and became effective and enforceable after a settlement agreement on November 27, 2007.
Permit WQ0016338 expires on November 30, 2014.

D. Alchem violated N.C.G.S. 143-215.1 and Permit WO0002702 to the manner and extent as described in
Condition 13 by failing to demonstrably maintain the pH of the recycled water above 6 standard units as
it goes to the storage lagoons.
E. Alchem violated N.C.G.S. 143-215.1 and Permit WQ0016338 to the manner and extent as described in
Condition 111.2., by failing to maintain proper records tracking all application activities, including location
of residuals utilization and volume of residuals disposed.
F. Alchem violated N.C.G.S. 143-215.1 and Permit WQ0016338 to the manner and extent as described in
Condition 111.3., by not conducting residuals analyses for metals twice in 2008.
G. Alchem violated N.C.G.S. 143-215.1 and Permit WO0016338 to the manner and extent as described in
Condition 111.4., by failing to conduct an annual TCLP analysis in 2008.
H. Alchem violated N.C.G.S. 143-215.1 and Permit WO0016338 to the manner and extent as described in
Condition 111.6., by failing to maintain proper records tracking all application activities associated with
the surface disposal unit including but not limited to date and freeboard measurements, source and
date of residuals disposed of.
Alchem violated N.C.G.S. 143-215.1 and Permit WQ0016338 to the manner and extent as described in
Condition 111.7. by failing to submit a complete annual report covering 2008 by March 1, 2009.
J. General Statute 143-215.6A(a)(2) provides that a civil penalty of not more than $25,000.00 per violation
may be assessed against a person who violates or fails to act in accordance with the terms, conditions,
or requirements of a permit required by N.C.G.S. 143-215.1.
K. General Statute 143-215.3(a)(9) provides that the reasonable costs of any investigation, inspection or
monitoring survey may be assessed against a person who violates any regulations, standards, or
limitations adopted by the Environmental Management Commission or violates any terms or conditions
of any permit issued pursuant to N.C.G.S. 143-215.1, or special order or other document issued
pursuant to N.C.G.S. 143-215.2.
Based upon the above Findings of Fact and Conclusions of Law, I make the following:
III. DECISIONS:
Pursuant to N.C.G.S. 143-215.6A in determining the amount of the penalty, I have taken into account the
Findings of Fact and Conclusions of Law and considered all the factors listed in N.C.G.S. 143B-282.1.
Accordingly, Alchem is hereby assessed a civil penalty of:
$ 8,000.00 for one violation of N.C.G.S. 143-215.1 and Permit No. WQ0002702 by failing
to perform to permit standards as required by Condition 13, which requires the
recycled water to be maintained at a pH of not less than 6.0 standard units as
it leaves the wash area and goes to the storage lagoon.
$ 6,000.00 for one violation of 'N.C.G.S. 143-215.1 and Permit No. WQ0016338,
Condition 111.2. by failing to maintain proper records tracking all application
activities, including location of residuals utilization and volume of residuals
disposed.

$ 4,000.00 for one violation of N.C.G.S. 143-215.1 and Permit No. WO0016338,
Condition 111.3. by failing to conduct residuals analyses for metals twice in
2008.
$ 2,000.00 for one violation of N.C.G.S. 143-215.1 and Permit No. WQ0016338,
Condition 111.4. by failing to conduct an annual TCLP analysis in 2008
$ 4,000.00 for one violation of N.C.G.S. 143-215.1 and Permit No. WQ0016338,
Condition 111.6. by failing to maintain proper records tracking all application
activities associated with the surface disposal unit including but not limited to
date and freeboard measurements, source and date of residuals disposed of.
$ 2,000.00 for one violation of N.C.G.S. 143-215.1 and Permit No. WO0016338,
Condition 111.7., which requires reporting with three copies of all required
information, monitoring and reporting requirements as specified in Conditions
111.2., 111.3.1 111.4., and 111.5., to be submitted annually on or before March 1 of
the following year.
$ 26,000.00 TOTAL CIVIL PENALTY, which is 17 percent of the maximum penalty authorized
by G.S. 143-215.6A.
$ 1,024.65 Investigation and Enforcement costs assessed.
$ 27,024.65 TOTAL AMOUNT DUE
IV. NOTICE:
I reserve the right to assess civil penalties and investigative costs for any continuing violations occurring
after the assessment period indicated above. Each day of a continuing violation may be considered a
separate violation subject to a maximum $25,000.00 per day penalty. Civil penalties and investigative cost
may be assessed for any other rules and statutes for which penalties have not yet been assessed.
V. TRANSMITTAL:
These Findings of Fact, Conclusions of Law and Decision shall be transmitted to Alchem, in
accordance with N.C.G.S. 143-215.6(A)(d).
(Date)
for Coleen Sullins

JUSTIFICATION FOR REMISSION REQUEST
Case Number: PC-2009-0121 County: Rowan
Assessed Party: Alchem Incorporated
Permit No. (if applicable): W00016338 &W00002702 Amount assessed: $27,024.65
Please use this form when requesting remission of this civil penalty. You must also complete the "Reguesf
For Remission Waiver of Right to an Administrative Hearing and Stipulation of Facts" form to request
remission of this civil penalty. You should attach any documents that you believe support your request and
are necessary for the Director to consider in determining your request for remission. Please be aware that a
request for remission is limited to consideration of the five factors listed below as they may relate to the
reasonableness of the amount of the civil penalty assessed. Requesting remission is not the proper
procedure for contesting whether the violation(s) occurred or the accuracy of any of the factual statements
contained in the civil penalty assessment document. By law [NCGS 133-215.6A(f)] remission of a civil
penalty may be granted when one or more of the following five factors applies. Please check each factor
that you believe applies to your case and provide a detailed explanation, including copies of supporting
documents, as to why the factor applies (attach additional pages as needed).
(a) one or more of the civil penalty assessment factors in NCGS 143B-282.1(b) were wrongfully
applied to the detriment of the petitioner (the assessment factors are included in the attached
penalty matrix and/or listed in the civil penalty assessment document);
(b) the violator promptly abated continuing environmental damage resulting from the violation
(i.e., explain the steps that you took to correct the violation and prevent future occurrences);
(c) the violation was inadvertent or a_ result of an accident (i.e., explain why the violation was
unavoidable or something you could not prevent or prepare for);
(d) the violator had not been assessed civil penalties for any previous violations;
_ (e) payment of the civil penalty will prevent payment for the remaining necessary remedial
actions (i.e., explain how payment of the civil penalty will prevent you from performing the
activities necessary to achieve compliance).
EXPLANATION:

STATE OF NORTH CAROLINA
DEPARTMENT OF ENVIRONMENT
AND NATURAL RESOURCES
COUNTY OF ROWAN
IN THE MATTER OF ASSESSMENT)
OF CIVIL PENALTIES AGAINST )
ALCHEM INCORPORATED )
Permit No. WQ0016338 and )
Permit No. WQ00002702 )
WAIVER OF RIGHT TO AN
ADMINISTRATIVE HEARING AND
STIPULATION OF FACTS
FILE NO. PC-2009-0121
Having been assessed civil penalties totaling $27,024.65 for violation(s) as set forth in the assessment
document of the Division of Water Quality, Aquifer Protection Section dated December 23, 2009, the
undersigned, desiring to seek remission of the civil penalties, does hereby waive the right to an
administrative hearing in the above -stated matter and does stipulate that the facts are as alleged in the
assessment document. The undersigned further understands that all evidence presented in support of
remission of this civil penalty must be submitted to the Director of the Division of Water Quality within 30
days of receipt of the notice of assessment. No new evidence in support of a remission request will be
allowed after 30 days from the receipt of the notice of assessment.
This the day of
20
Signature
ADDRESS
TELEPHONE

December 23, 2009
MEMORANDUM
TO: Ed Hardee, APS, LAU
FROM: Andrew Pitner, MRO, APSE
PREPARED BY: Ellen Huffman, MRO, APS
SUBJECT: Enforcement Case — PC-2009-0121(NOV-2009-PC-0470)
Violation of Permits No. WQ0016338 and WQ0002702
Alchem Incorporated
Attached is the enforcement package sent to Alchem on December 23, 2009, with supporting
documentation concerning violations of the subject permits. The violations resulted from
Alchem's mismanagement of the bauxite reuse program. The MRO is issuing a civil penalty.
The attached material should be self-explanatory; however, if you have any questions, please
contact Mrs. Ellen Huffman or me.
Attachments
ebh

Page 1
Summary
Conditions observed during a scheduled inspection on April 30, 2009 concluded that permit
conditions and the 2007 Settlement Agreement conditions had not been met. An NOV/NOI was sent
June 2, 2009.
Chronology of Events/Correspondence
November 27, 2007 — Alchem entered into a court signed agreement with several conditions. One
specifically, to clean out all three spent bauxite lagoons and inspect the liners by June 1, 2008.
April 30, 2009 — Staff from the Mooresville Regional Office, Aquifer Protection Section (Ellen
Huffman, Peggy Finley) conducted a bi-annual inspection of the Alchem Facility and confirmed that
Lagoon #3 had not been cleaned out hence, the liner has not been inspected as per the November
27, 2007 Settlement Agreement finish date of June 1, 2008. Alchem personnel were unable to
produce pH records for the recycle system. A file review indicated that the Division has not received
an annual report as required by permit.
June 2, 2009 — MRO issues a NOV/NOI for the violations noted on April 30, 2009.
July 23, 2009 - DWQ issued an addendum to the June 2, 2009 NOV/NOI pointing out missed
response deadline, asking for more information, and giving another response deadline of August 6,
2009.
August 4, 2009 Alchem submitted an annual report. This document did not have all of the data
required in the aforementioned permit conditions. Specifically, there was no spent bauxite residual
analyses submitted as required in permit conditions 111.3 and 111.4. There were no records submitted
for permit conditions 111.6 a, d, e, and f.
October 13, 2009 DWQ issued another request for additional information because of the incomplete
response received on August 4, 2009. The deadline for this request was October 30, 2009.
October 30, 2009, Alchem faxed DWQ a request for an extension due to family illness.
November 5, 2009, DWQ faxed an extension letter giving Alchem a deadline of November 19, 2009.
November 25, 2009 DWQ received a fax from Randall Andrews for TCLP analyses of "sand" that
was collected on November 8, 2009. None of the other data requested by DWQ has been received.
CHECKLIST FOR PERMIT VIOLATIONS
1. Copies of the Permits (#WQ0016338, WQ0002702) and Settlement Agreement are attached.
2. The violator is Alchem Incorporated. Mr. Randall Andrews is the registered agent for the
company.
Mr: Randall Andrews
2042 Buie Philadelphus Road
Red Springs, North Carolina 28377

3. This enforcement involves violations of non -discharge permit conditions and general statute
G.S. 143-215.1.
4. Copy of annual report from Alchem
5. Copies of chain -of -custody. Not applicable.
6. The violation is not due to a power failure or by-pass of any treatment facility.
7. Are violation(s) chronic and/or due to a single operational upset?
The violations are more chronic in nature and considered to be willful.
8. Were any specific notifications submitted concerning noncompliance?
A NOV/NOI was sent on June 2, 2009, which documented the subject permit violations and
indicated that an enforcement recommendation would be prepared. Follow up
correspondence was also sent in July, October, and November 2009.
9. Cost of the investigation:
14 hours by Ellen Huffman for preparation
of enforcement report at $28.00/hour = 392.03
5 hours by Peggy Finley for preparation
of enforcement report at $26.21/hour = 131.03
5 hours by Andrew H. Pitner, for supervisory review
at $34.81/hour = 174.03
1 hour for clerical processing at $10.93/hour = 10.93
Administrative Cost for processing report = 300.00
Certified Mail 3 @ $5.54 /ea. = 16.62
Total 1024.65

DIVISION OF WATER QUALITY
ENFORCEMENT CASE ASSESSMENT FACTORS
Date: 12-23-09
Type: Permit Violations & Settlement Agreement
Non -Discharge Permits No. WQ0016338 and W00002702
Violator: Alchem Incorporated
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 violation:
Impacts to groundwater and surface water at the facility have been documented, including
contamination of neighboring water supply wells. Violations associated with this enforcement case
include failure to keep process water at a pH of 6 or above, which has consistently been a problem
at the facility. Other violations are associated with sampling and reporting requirements. While the
improper maintenance of pH over the 2008 period is related to the contamination issues at the site, it
is not clear if it directly contributed to continuing problem during this time period or not. That there
have been and are continuing contamination issues and that Alchem is unable to correct problems
with their related process is a very significant factor in this assessment.
2. The duration and gravity of the violation:
This violation is associated with the 2008 operations at Alchem. Freeboard in Lagoon #3 has been
documented as a problem since before the 2007 Settlement Agreement that required clean out and
inspection of the structure by June 1, 2008. The permit and the 2007 Settlement Agreement also
included language about maintaining appropriate pH of the recycle water as it goes to the lagoons.
It was clear from previous inspections and correspondence with the permittee that this has been an
ongoing problem, yet they have not maintained records demonstrating that the recycle water is in
compliance.
3. The effect on water/groundwater quality:
Groundwater and surface water at and below the facility have been impacted by facility operations.
The degree to which the current violations are related to those impacts is not clear.
4. The cost to rectify the damage:
The cost to rectify the damage from these violations is not clear. Alchem is facing ongoing costs
associated with assessment of the extent of groundwater contamination from a separate violation.
5. Amount of money saved by noncompliance:
The actual amount saved by noncompliance is not clear. Neglected sampling and reporting would
be estimated to be in the range of hundreds of dollars. The cost to adequately maintain the pH of
the recycle system water & residuals would likely be in the thousands of dollars.
6. Whether or not the violations were committed willfully or intentionally:

7.
f-1
7
i Of
11
Proper operation of the recycle system and adherence to permit requirements has been an ongoing
problem at Alchem. That submitted data shows they were aware of continuing problems with the
recycle system delivering acidic residuals to the storage lagoons and that they continued to operate
it in this manner is considered willful and intentional.
The prior record of the violator in complying or failing to comply with programs over which
the Environmental Management Commission has regulatory authority:
The Alchem facility has an extensive record of non-compliance, including NOV 10/25/1990, NOV
01/07/2002, NOV 03/15/2002, NOWNRE 05/12/2003, NOV 08/19/2003, NOWNRE 01/12/2005,
NOWNRE 09/20/2005, NOWNRE 01/06/2006, NOWNRE 12/20/2006, NOWNRE 02/21/2008,
NOWNRE 03/27/2008, and under settlement agreement filed November 27, 2007.
Type of violator and general nature of business:
The permittee manufactures chemicals for water and wastewater treatment. The primary use of the
facility is to chemically treat bauxite with sulfuric acid to produce Alum for water and wastewater
treatment.
Violator's degree of cooperation (including efforts to prevent) or recalcitrance:
Management changes at the Rockwell facility have led to greater communication with DWQ and
improvements to the overall appearance of the facility, however there is a continued lack of concern
about specific permit requirements and attention to the permitted processes.
Mitigating circumstances:
This Office is concerned with the extensive history of poor management of Alchem's non -discharge
facilities. Alchem continues to have a 'lack of concern' about the permit conditions.
See file history included in package.
Cost to the State of the enforcement procedure:
The cost to the State in bringing about this enforcement action is as follows:
14 hours by Ellen Huffman for preparation
of enforcement report at $28.00/hour = 392.03
5 hours by Peggy Finley for preparation
of enforcement report at $26.21/hour = 131.03
5 hours by Andrew H. Pitner, for supervisory review
at $34.81 /hour = 174.03
1 hour -for clerical processing at $10.93/hour = 10.93
Administrative Cost for processing report = 300.00
Certified Mail 3 @ $5.54 /ea. = 16.62
Total $1,024.65

DIVISION OF WATER QUALITY -- CIVIL PENALTY ASSESSMENT
Violator: Alchem Incorporated
County: Rowan
Case Number: PC-2009-0076
ASSESSMENT FACTORS
1) The degree and extent of harm to the natural resources of the State, to the public health, or to
private
( ) not significant ( ) moderately significant ( ) significant (X) very significant ( ) extremely significant
2) The duration and gravity of violation;
( ) not significant ( ) moderately significant( ) significant (X) very significant ( ) extremely significant
3) The effect on ground or surface water quantity or quality or on air quality;
( ) not significant ( ) moderately significant(X) significant( ) very significant ( ) extremely significant
4) The cost of rectifying the damage;
( ) not significant (X ) moderately significant( ) significant( ) very significant( ) extremely significant
5) The amount of money saved by noncompliance;
( ) not significant (X) moderately significant( ) significant( ) very significant ( ) extremely significant
6) - Whether the violation was committed willfully or intentionally;
( ) not significant ( ) moderately significant( ) significant ( ) very significant (X) extremely significant
7) The prior record of the violator in complying or failing to comply with programs over which the
Environmental management Commission has regulatory authority; and
( ) not significant ( ) moderately significant( ) significant ( ) very significant (X) extremely significant
8) The cost to the State of the enforcement procedures.
( ) not significant (X) moderately significant( ) significant( ) very significant ( ) extremely significant
e4­��., 0 CA,
Date
4 A) 'Al
Andrew H. Pi ner, P.G.

DIVISION OF WATER QUALITY
CIVIL PENALTY REMISSION FACTORS
Case Number: PC-2009-0076 Region: Mooresville
Assessed Entity: Alchem Incorporated
County: Rowan
Permit: WQ0016338/W00002702
❑ (a) Whether one or more of the civil penalty assessment factors were wrongly applied to the detriment
of the petitioner:
❑ (b) Whether the violator promptly abated continuing environmental damage resulting from the
violation:
❑ (c) Whether the violation was inadvertent or a result of an accident:
❑ (d) Whether the violator had been assessed civil penalties for any previous violations:
❑ (e) Whether payment of the civil penalty will prevent payment for the remaining necessary remedial
:...,actions:
DECISION (Check One)
Request Denied ❑
Full Remission ❑ Retain Enforcement Costs? Yes ❑ No ❑
Partial Remission ❑ $ (Enter Amount)
Coleen H. Sullins Date

ALCHEM response review notes-E.H.
August 2009-November-24, 2009
Issues sited in NOV/NOI June 2, 2009 and summary of ALCHEM response:
1. Lagoon #3 has not been cleaned out and the liner has not been inspected as per the
November 27, 2007 Settlement Agreement finish date of June 1, 2008.
Response review: ALCHEM stated that lagoon #3 is 50% cleaned out. Photos from the
most recent inspection show piles of sand still in lagoon # 3. If ALCHEM has done any
spent sand removal, they have not submitted documentation to where any Of the
residuals leaving the facility for disposal have gone. ALCHEM has known the
importance of documenting where the spent bauxite goes as stated in the response
dated March 24, 2008 to the NOV issued Feb.21, 2008.
2. An annual report for 2008 for permit WQ0016338 was due on -March 1, 2009, and has
not been received by the division as required by Part III, condition 7.
Response review: The 2008 Annual Report was submitted for WQ0016338 as a part of
the NOV response. The report does not include the data required by the permit.
Specifically:
• No spent bauxite residual analyses for metals as required in 111.3 .
• No TCLP analyses as required in 111.4.
• No records submitted for 111.6 a - dated freeboard measurements,
• 111.6d — cumulative volume of residuals in gallons or cu. yds. excluding freeboard
(lagoon),
• 111.6e — remaining volume in the surface disposal unit in gallons or cubic yards
excluding freeboard, and 111.6f - remaining disposal life in disposal unit in years
(lagoon).
• Hauling records of spent bauxite for off -site disposal as required by Wg0016338
111.2b.
3. The log that contains pH readings of the water in the lagoons was not available for
review at the time of the inspection. This information was not received by fax as
promised. (WQ0002702 permit condition 13).
Response review: An inspection report for Lagoons 1 & 2 submitted by DELTA for
ALCHEM reported Lagoon #1 and #2 being totally cleaned out and the liners tested on
June 10, 2008. Production records indicate lagoon #1 being used starting June 20,
2008. There were no pH readings submitted for all the spent sand from production
batches sent to lagoon #1 for June, July, August, September, or October (95 batches of
spent bauxite), however, lagoon pH readings for lagoon #1 for the same period reflect
pH readings of 3.40, 3.42, 3.41, 3.44, 3.45, 3.42, 3.45.
This indicates that the pH of the spent bauxite after production was not being adjusted
to 6.0 S.U. prior to the spent bauxite being sent to lagoon #1 after cleanout. The 2008
annual report submitted indicated daily batches being processed and only weekly ph
data being taken. Several months of production, May 28, 2008 through October 21,
2008, had no pH readings at all. Report indicates 95 batches a@ 20 tons each,
produced with no pH readings.
4. A permit renewal was due in May 2009.
Alchem's response stated that a renewal would be submitted to the RMO by ,!august 6,
2009. This office as well as Central Office, has not received anything from ALCHEM
regarding the renewal of permit WQ0002702.

The above response was due June 12, 2009. Response was received August 4, 2009.
The Addendum to the NOV/NOI dated July 23, 2009 added:
4. Permit WQ 0002702, Condition 10 requires that freeboard in all lagoons shall not be
less than two feet at any time. Lagoon #3 does not have adequate freeboard in that
bauxite residuals have exceeded capacity and are piled several feet above the elevation
of the lagoon walls. This violation continues to exist because the lagoon. has not been
cleaned out and the liner inspected as per the November 27, 2007 Settlement
Agreement completion date of June 1, 2008.
Response was due August 6, 2009. Response received August 4, 2009.
Response review: Freeboard response to MRO is not factual. Response indicated that clean -
out activity for lagoon #3 as 50% completed and currently has 6 feet of freeboard vertically and
40 feet horizontally and that this has not changed since June of 2008. The 2008 annual report
indicates that Lagoon #3 has been used for production disposal of sand in March, April, May,
and June of 2008. File indicates records of 14 loads (22.5 tons each) documented sent to IAC
in January 2008. There is no documentation for disposal of sand for the Feb. -June 2008 time
period, as required by the Nov. 2007 settlement agreement.
File photo lagoon #3 April 2009
The records received for lagoon pH and temp readings (Peggy Finley) reported readings of
samples identified as R/R acid and R/R bauxite and in some cases, sand. Staff is unsure what
these readings are for. Records submitted date back to February 2007. The intervals of pH
readings vary from month to month. There are no records for All of January 2008 and only 1
week documented for February 2008.
September 25, 2009 — a report for lagoon liner testing was received. No records of spent
bauxite hauling were submitted with this report. In the report the engineer remarks state that
only the work requested by the client is contained in the report.

L E
NC®ENR
North Carolina Department of Environment and Natural Resources
Beverly Eaves Perdue Coleen H. Sullins Dee Freeman
Governor Director, Division of Water Quality Secretary
October 13, 2009
Certified Mail
Return Receipt Requested
Alchem Incorporated
2042 Buie Philadelpus Rd.
Red Springs, NC 28377
Attention: Randall Andrews
Subject: Additional Information Request for
Notice of Violation (NOV) and
Notice of Intent (NOI) to Enforce
NOV-2009-PC-0470
Permits # WQ0002702, W00016338
Recycle System, Monofil
Rockwell, Rowan County
Dear Mr. Andrews:
Chapter 143, North Carolina General Statutes, authorizes and directs the Environmental
Management Commission of the Department of Environment and Natural Resources to protect and
preserve the water and air resources of the State. The Division of Water Quality (division) has the
delegated authority to enforce adopted pollution control rules. This letter is a standard notification and is
intended to advise you of the legal requirements under North Carolina law.
On August 4, 2009 our Office received your responses to NOV-2009-PC-0470. The responses
received are:
I. The 2008 Annual Residual (spent bauxite activity tracking) Report,
II. The pH report for lagoons 1, 2, & 3.
III. On September 25, 2009 our Office received An Engineering Report from DELTA for the liner
inspection for lagoon #3.
Further information is needed for all three submittals to complete a compliance review. Please address
the following items:
The annual report for 2008 did not have complete monitoring records, specifically:
• Spent bauxite residual analyses for metals as required in condition 111.3 of WQ0016338.
• TCLP analyses as required in condition 111.4 of WQ0016338.
• Records for dated freeboard measurements as required in condition 111.6a of WQ0016338
• Records of cumulative volume of residuals in gallons or cu. yds. excluding freeboard
(lagoon) as required in condition 111.6d of WQ0016338
610 East Center Avenue, Suite 301, Mooresville, North Carolina 28115 One
Phone: [phone] FAX: [phone] Internet: www.ncwaterquality.org NorthCarollna
An Equal Opportunity1 Affirmative Action Employer — 50% Recycled 110% Post consumer Paper AW110491ip f

Alchem (VVQ0002702NVQ0016338) NOWNOI - additional information request 'R
Oct. 13, 2009 —
Page 2 of 2 ;
•='=«Reisordsof disposal for spent bauxite in lagoons 1 and 2 cleanout prior to the final liner
inspection as required by condition 111.2 a & b of Permit WQ0016338 the 2007 settlement
agreement item 1.d.
• Records of remaining volume in the surface disposal unit in gallons or cubic yards
excluding freeboard and calculation of remaining disposal life in disposal unit in years
(lagoon) as required in condition 111.6e and 111.6f of permit WQ0016338.
pH reports for lagoons 1,2, and 3. Engineering records submitted to us indicate lagoons #1 and
#2 being cleaned and liner inspected in June of 2008. The 2008 annual report indicates lagoon
#1 receiving spent bauxite starting June 20, 2008. No batch pH readings were submitted for the
spent bauxite sent to lagoon #1 for June, July, August, September, or October 2008. A review of
the pH log requested during the inspection and submitted with the annual report reflects
significant discrepancies of the pH of the spent bauxite going into the lagoon and the pH of the
water in the lagoon. Please explain why there is such a difference in the pH.
III. Inspection of lagoon #3; although documentation of the inspection of the liner is complete,
documentation of the volume and the disposal location of lagoon content has not been submitted
as required by the 2007 settlement agreement item 1.d and Permit W00016338, condition 111.2 a
& b. Please send is this documentation.
Please provide a written response to this request for additional information by October 30, 2009.
Failure to comply with conditions in a permit may result in a recommendation of enforcement
action, to the Director of the Division of Water Quality who may issue a civil penalty assessment of not
more that twenty-five thousand ($25,000) dollars against any "person" who violates or fails to act in
accordance with the terms, conditions, or requirements of a permit under authority of G.S. 143-215.6A.
Please note that each day a violation continues may be considered a separate violation, subject to
additional civil penalties.
As a result of the violations described in this Notice, this office is considerina a recommendation
for a civil penalty assessment to the Director of the Division. If you wish to present an explanation for the
violations cited, or if you believe there are other factors that should be considered, please send such
information to me in writing within ten (10) days following receipt of this letter. Your response will be
reviewed, and, if an enforcement action is still deemed appropriate, it will be forwarded to the Director
and included for consideration.
0 or via email at:
UNITED STATES POSTAL SERVICE First -Class Mail
Postage & Fees Paid
USPS
C
• Sender: Please print your name, address, a + in this lox
DENR DWQ Aquifer Protection
610 E. Center Ave., Ste. 301
Mooresville NC 28115
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NCDENR
North Carolina Department of Environment and Natural
Beverly Eaves Perdue Coleen H. Sullins
Governor
Certified Mail
Return Receipt Requested
Alchem Incorporated
2042 Buie Philadelpus Rd.
Red Springs, NC 28377
Attention: Randall Andrews
Dear Mr. Andrews:
Director, Division of Water Quality
Resources
Dee Freeman
Secretary
July 23, 2009
Subject: Addendum to
Notice of Violation (NOV) and
Notice of Intent (NOI) to Enforce
NOV-2009-PC-0470
WQ0002702, WQ0016338
Recycle System, Monofil
Rockwell, Rowan County
Chapter 143, North Carolina General Statutes, authorizes and directs the Environmental
Management Commission of the Department of Environment and Natural Resources to protect and
preserve the water and air resources of the State. The Division of Water Quality (division) has the
delegated authority to enforce adopted pollution control rules. This letter is a standard notification and is
intended to advise you of the legal requirements under North Carolina law.
On April 30, 2009, staff from the Mooresville Regional Office, Aquifer Protection Section (Ellen
Huffman and Peggy Finley) conducted an inspection of the Alchem facility in Rockwell. During this
inspection, the facility was found to be non -compliant with conditions of the subject permits and the
November 27, 2007, Settlement Agreement. The inspection report previously sent to you did not include
notice that the permit condition regarding freeboard in Lagoon #3 had not been properly maintained. A
file review notes that this violation has been documented in the inspection dated December 5, 2006, and
is an on -going violation. It was also noted that the fill area has been extensively graded. This activity
has made the previously submitted site -life report invalid. To summarize and re -iterate the areas of non-
compliance:
• Permit WQ 0002702, Condition 10 requires that freeboard in all lagoons shall not be less than
two feet at any time. Lagoon #3 does not have adequate freeboard in that bauxite residuals have
exceeded capacity and are piled several feet above the elevation of the lagoon walls. This
violation continues to exist because the lagoon has not been cleaned out and the liner inspected
as per the November 27, 2007 Settlement Agreement completion date of June 1, 2008.
610 East Center Avenue, Suite 301, Mooresville, North Carolina 28115 One
Phone: [phone] FAX: [phone] Internet: www.ncwaterquality.org NorthCarollna
An Equal Opportunity 1 Affirmative Action Employer - 50% Recycled 1 10%u Post Consumer Paper Xatmivllff

Alchem (WQ0002702/WQ0016338) NOV/NO[ addendum
JulyX23, 2009
Pa-e2of2
• An annual report for 2008 for permit WQ0016338 was due on March 1, 2009, and has not been
received by the division as required by Condition 111.7.
• The log that contains pH readings of the water in the lagoons was not available for review at the
time of the inspection. This information was not received by fax as promised during the
inspection (Permit WQ0002702, Condition 13).
• Permit WQ0002702, Condition 37 requires you request an extension of the permit at least six
months prior to the expiration of the permit. This permit expires on November 30, 2009, and to
date, the division has not received a renewal request.
The original NOWNOI sent certified mail on June 2, 2009, had a response date of June 30, 2009.
As of the date of this letter, our office has not received any correspondence from you. You are required
to take any necessary action to correct the above violations and to provide a written response to
this Notice by August 6, 2009. Please include in your response all corrective actions already taken and
a schedule for completion of any corrective actions not yet addressed.
Failure to comply with conditions in a permit may result in a recommendation of enforcement
action, to the Director of the Division of Water Quality who may issue a civil penalty assessment of not
more that twenty-five thousand ($25,000) dollars against any "person" who violates or fails to act in
accordance with the terms, conditions, or requirements of a permit under authority of G.S. 143-215.6A.
Please note that each day a violation continues may be considered a separate violation, subject to
additional civil penalties.
As a result of the violations described in this Notice this office is considering a recommendation
for a civil penalty assessment to the Director of the Division. If you wish to present an explanation for the
violations cited, or if you believe there are other factors that should be considered, please send such
information to me in writing within ten (10) days following receipt of this letter. Your response will be
reviewed, and, if an enforcement action is still deemed appropriate, it will be forwarded to the Director
and included for consideration.
Should you have any questions, feel free to contact me at 704/235-2180 or via email at:
[e-mail]
UNITED STATES POSTAL SERVICE
y
_ y�,e.s'kx�."�'F,: :GF-t ''�•; �=�.,'' ,X:`sy:"df �: ar.'i
• Sender: Please print your name, address,
DENR DWQ Aquifer Protection
610 E. Center Ave., Ste. 301
i Mooresville NC 28115
i
l
Sincerely,
N.
04
- . _ f-\.
Supervisor
na 28138

; 7' 3
`oii' R
North Carolina Department of Environment.and Natural Resources
Beverly Eaves Perdue
Governor
Certified Mail
Return Receipt Requested
Alchem Incorporated
2042 Buie Philadelpus Rd.
Red Springs, NC 28377
Attention: Randall Andrews
Dear Mr. Andrews:
Coleen H. Sullins Dee Freeman
Director, Division of Water Quality Secretary
July 23, 2009
Subject: Addendum to
Notice of Violation (NOV) and
Notice of Intent (NOI) to Enforce
NOV-2009-PC-0470
WQ0002702, WQ0016338
Recycle System, Monofil
Rockwell, Rowan County
Chapter 143, North Carolina General Statutes, authorizes and directs the Environmental
Management Commission of the Department of Environment and Natural Resources to protect and
preserve the water and air resources of the State. The Division of Water Quality (division) has the
delegated authority to enforce adopted pollution control rules. This letter is a standard notification and is
intended to advise you of the legal requirements under North Carolina law.
. On April 30, 2009, staff from the Mooresville Regional Office, Aquifer Protection Section (Ellen
Huffman and Peggy Finley) conducted an inspection of the Alchem facility in Rockwell. During this
inspection, the facility was found to be non -compliant with conditions of the subject permits and the
November 27, 2007, Settlement Agreement. The inspection report previously sent to you did not include
notice that the permit condition regarding freeboard in Lagoon #3 had not been properly maintained. A
file review notes that this violation has been documented in the inspection dated December 5, 2006, and
is an on -going violation. It was also noted that the fill area has been extensively graded. This activity
has made the previously submitted site -life report invalid. To summarize and re -iterate the areas of non-
compliance:
• Permit WQ 0002702, Condition 10 requires that freeboard in all lagoons shall not be less than
' two feet at anytime. Lagoon #3 does not have adequate freeboard in that bauxite residuals have
exceeded capacity and are piled several feet above the elevation of the lagoon walls. This
violation continues to exist because the lagoon has not been cleaned out and the liner inspected
as per the November 27, 2007 Settlement Agreement completion date of June 1, 2008.
610 East Center Avenue, Suite 301, Mooresville, North Carolina 28115 One
Phone: [phone] FAX: [phone] Internet: www.ncwaterqualitv.org NOrthCarOlilla
An Equal opportunity \Affirmative Action Employer— 50% Recycled i 10%, Post Consumer Paper atmi'allii

Alchem (WQ0002702/ W00016338) NOV/NOI addendum
July 23, 2009
Page 2 of 2
• An annual report for 2008 for permit WQ0016338 was due on March 1, 2009, and has not been
received by the division as required by Condition 111.7.
JI (• The log that contains pH readings of the water in the lagoons was not available for review at the
time of the inspection. This information was not received by fax as promised during the
inspection (Permit WQ0002702, Condition 13).
• Permit WQ0002702, Condition 37 requires you request an extension of the permit at least six
months prior to the expiration of the permit. This permit expires on November 30, 2009, and to
date, the division has not received a renewal request.
The original NOV/NOI sent certified mail on June 2, 2009, had a response date of June 30, 2009.
As of the date of this letter, our office has not received any correspondence from you. You are required
to take any necessary action to correct the above violations and to provide a written response to
this Notice by August 6, 2009. Please include in your response all corrective actions already taken and
a schedule for completion of any corrective actions not yet addressed.
Failure to comply with conditions in a permit may result in a recommendation of enforcement
action, to the Director of the Division of Water Quality who may issue a civil penalty assessment of not
more that twenty-five thousand ($25,000) dollars against any "person" who violates or fails to act in
accordance with the terms, conditions, or requirements of a permit under authority of G.S. 143-215.6A.
Please note that each day a violation continues may be considered a separate violation, subject to
additional civil penalties.
As a result of the violations described in this Notice this office is considering a recommendation
for a civil penalty assessment to the Director of the Division. If you wish to present an explanation for the
violations cited, or if you believe there are other factors that should be considered, please send such
information to me in writing within ten (10) days following receipt of this letter. Your response will be
reviewed, and, if an enforcement action is still deemed appropriate, it will be forwarded to the Director
and included for consideration.
Should you have any questions, feel free to contact meat 704/235-2180 or via email at:
Andrew. [e-mail]
Sincerely,
A_kA
Andrew H. Pitner, P.G.
Environmental Program Supervisor
Cc: Robert Wolcott, Alchem Incorporated, 8135 Red Road, Rockwell, North Carolina 28138
MRO-APS Files
DWQ-APS Land Application Unit, Raleigh
Anita LeVeaux, AG Office

III Complete items 1, 2, and 3. Also complete
ite4n 4 if Restricted Delivery is desired.
■ Print your name and address on the reverse
so that we can return the card to you.
is Attach this card to the back of the mailpiece,
or on the front if space permits.
1. Article Addressed to:
Randall Andre"'s A l>�—A P
Alchem, Inc,
2042 Buie Philadelphus Rd.
Red Springs N(' 28 ; 7 7
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❑Agent
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D. Is delivery address different from Item 1? ❑ Yes
If YES, enter delivery address below: ❑ No
3. Servi
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❑ Registered
❑ Return Receipt for Merchandise
❑ Insured Mail
❑ C.O.D.
4. Restricted Delivery? (Extra Fee)
7008 1140 0002 2717
2. Article Number 6 6 51,
(Transfer from service label)
PS Form 3811, February 2004 Domestic Return Receipt
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Street,lpf 2042 Buie Philadelphus Rd.
C3 or PO Box l
♦ ity, State, Red Springs NC gig; 77 •--
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UNITED STATES POSTAL SERVICE
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DENR DW Q Aquifer Protection
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610 E. Center Ave., Ste. 301
LU5
Mooresville NC 28115
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, - 4
State of North Carolina
Department of Environment
and Natural Resources
Division of Water Quality
Beverly Eaves Perdue, Governor
Dee Freeman, Secretary
Coleen H. Sullins, Director
A&4kva
NCDENR
NON -DISCHARGE COMPLIANCE INSPECTION
Recycle System & Bauxite Residuals Monofill
GENERAL INFORMATION
Owner: Randall Andrews County: Rowan
Project Name: Alchem, Inc.
Permit No. WQ0002702 Issuance Date: Dec. 28, 2004 Expiration Date: Nov. 30, 2009
Permit No. W00016338 Issuance Date: Dec. 28, 2006 Expiration Date: Nov. 30, 2011
Permittee Contact: Bob Wolcott, Operations Mgr. Telephone No. 704/279-7908
Reason for Inspection
X ROUTINE COMPLAINT
Inspection Summary:
X FOLLOW-UP OTHER
This inspection has concluded that ALCHEM is non -compliant with conditions in both subject
permits.
Staff from the Mooresville Regional Office, Aquifer Protection Section (Ellen Huffman, Peggy
Finley) conducted a bi-annual inspection on April 30, 2009. Site managers Bob Wolcott and
Jason De Saito were present.
Alum production is reported to be -down and Mr. Wolcott stated that they plan to get out of the
alum production business by the end of the year. Lagoon #3 has still not been cleaned out
hence, the liner has not been inspected as per the November 27, 2007 Settlement Agreement
finish date of June 1, 2008. It is stressed that the clean out of # 3 lagoon be properly
documented with details of when bauxite is removed from #3 lagoon, how much material is
disposed, and where it goes, with a final report submitted to the MRO/APS that details the
removal and disposal of.the spent bauxite.
Future records of alum batches will need to include similar documentation including batch date,
amount of spent bauxite to lagoon (identified by number) in order to create an annual report per
permit W00016338 part III, condition 2,3,4,5, and 6 with some accuracy of spent bauxite activity
on site.
continued.
Is a follow-up inspection necessary X yes no
Date of inspection April 30, 2009

rY
ALCHEM inspection April 30, 2009
Page 2
Inspection Summary continued.
Please note that an annual report (2008) for permit WQ0016338 was due on March 1, 2009 and
has not been received by this office as required by Part III, condition 7.
All three lagoons do not have any protective vegetation for erosion control.
Mr. Wolcott stated that he has had difficulties with wet and dry weather creating mud and/or
dust. He also stated that he thought about mulching the entire area. It may be prudent to speak
with Lloyd Pace, Rowan County Erosion Control, 704/202-6642, for assistance with this issue.
Mr. Wolcott also stated that he is considering building a pond near the area where the City water
pipe comes onto the property. After discussion with Surface Water staff, it was concluded that
this activity probably needs a 401 permit and was advised that Mr. Wolcott obtain an
environmental engineer for feasibility of such a project.
Permit WQ0002702 expires in November 2009. Mr. Wolcott was advised that a renewal
request needs to be submitted by May. A copy of the renewal application was
subsequently sent to Mr. Wolcott.
Treatment
Residuals Storage Lagoons
Lagoon #1 is not receiving spent bauxite at the moment in order to allow its present contents to
dry out. Lagoon #2 is currently receiving spent bauxite from the reactor. Lagoon # 3 has not
been cleaned out and the liner has not been inspected as required by the 2007 settlement
agreement. It was noted during the inspection that a backhoe was being used to maintain
proper freeboard by pushing the spent bauxite away from the inner lagoon walls.
Despite efforts to establish a vegetative cover on the outer walls of the lagoons, they remain
effectively devoid of such vegetation for erosion control. See comments in inspection summary.
Transport of Residuals
As stated earlier, # 3 lagoon has not been cleaned out as required by the 2007 settlement
agreement. It was stressed. that detailed records of the clean out be kept and a final report
issued to the MRO upon completion.
Residuals Fill Area and Storm -water Basin
As noted in the photos below (next page), most of the fill area has been graded to meet berm
level. Piles of dirt for on -site use have been stored on the top of the upper level of the fill area
and sits on top of what is thought to be old spent bauxite. It appears that there is not much fill
area left due to extensive grading activity in the fill area over the past 12 months. A new site life
of the fill area will need to be re -calculated before the fill area can be used for disposal of spent
bauxite from lagoons 1 and/or 2 only.

ALCHEM inspection April 30, 2009
Berm and drainage area August 2005
Fill area October 2008
Berm and fill area is graded close to the
same level as the berm.
Page 3
Opposite view of berm January 29, 2008
4
_ 1
Fill area April 2009
Storm -water pond and fill area. Currently, material in back
ground (dirt?) is higher than the retaining berm. -
Storm -water basin is in the background.
Picture below
Lagoon #3 in back ground showing mounds of sand piled up to create freeboard.
Lagoon #3 has never been cleaned out.

t A.
Recordkeeping
A review of the log that documents pH readings at the end of reactor batches indicated that pH
values are now 6.0 or higher. The log that contains pH readings of the water in the lagoons was
not available for review at the time of the inspection. This information was not received as of the
date of this report.
Compliance Monitoring
Groundwater monitoring reports have not been submitted on schedule over the year but Mr.
Wolcott reported that GW-59s for the April event had recently been submitted to the division.
Please note that permit WQ0002702 for the industrial water recycle system expires
November 30, 2009 and that it is a condition of the permit that the' permittee request a
renewal by application six (6) months before the expiration date. The permit renewal was
due last month.

k"'
X a
'♦j®
NCDENR
North Carolina Department of Environment and Natural Resources
Beverly Eaves Perdue
Governor
Certified Mail
Return Receipt Requested
Alchem Incorporated
2042 Buie Philadelpus Rd.
Red Springs, NC 28377
Attention: Randall Andrews
Dear Mr. Andrews:
Coleen H, Sullins Dee Freeman
Division of Water Quality Secretary
June 2, 2009
Subject: Notice of Violation (NOV) and
Notice of Intent (NOI) to Enforce
NOV-2009-PC-0470
WQ0002702, WQ0016338
Recycle System, Monofil
Rockwell, Rowan County
Chapter 143, North Carolina General Statutes, authorizes and directs the Environmental
Management Commission of the Department of Environment and Natural Resources to protect and
preserve the water and air resources of the State. The Division of Water Quality (division) has the
delegated authority to enforce adopted pollution control rules. This letter is a standard notification and is
intended to advise you of the legal requirements under North Carolina law.
On April 30, 2009, staff from the Mooresville Regional Office, Aquifer Protection Section (Ellen
Huffman, Peggy Finley) conducted an inspection of the Alchem facility in Rockwell. During this
inspection, the facility was found to be non -compliant with conditions of the subject permits and the
November 27, 2007, Settlement Agreement. An inspection report is attached and the following points
highlight non -compliant areas:
J/ • Lagoon #3 has not been cleaned out and the liner has not been inspected as per the
November 27, 2007 Settlement Agreement finish date of June 1, 2008.
J An annual report for 2008 for permit WQ0016338 was due on March 1, 2009, and has not
been received by the division as required by Part III, condition 7.
/ The log that contains pH readings of the water in the lagoons was not available for review at
the time of the inspection. This information was not received by fax as promised.
(WQ0002702 permit condition 13).
610 East Center Avenue, Suite 301, Mooresville, North Carolina 28115
Phone: [phone] FAX: [phone] Internet: www.ncwaterquality.org
A.. ­­1 n.......1.... 1 AiF....Ml. A.+B...+ C,.+.d......, GA l 0.+­..d..,l 1 1! 1 D,..+..,
NorthCarolina
A I, i-, / o/7, /h /

Alchem (WQ0002702/WQ0016338) NOV/NOI
June 2, 2009
Page 2 of 2
Please note that permit WQ0002702 for the industrial water recycle system expires November
30, 2009 and that it is a condition of the permit that the permittee request a renewal by application six (6)
months before the expiration date. The permit renewal was due last month. A copy of the renewal
application was subsequently sent to Mr. Wolcott.
You are required to take any necessary action to correct the above violations and to
provide a written response to this Notice by June 30, 2009. Please include in your response all
corrective actions already taken and a schedule for completion of any corrective actions not addressed.
Failure to comply with conditions in a permit may result in a recommendation of enforcement
action, to the Director of the Division of Water Quality who may issue a civil penalty assessment of not
more that twenty-five thousand ($25,000) dollars against any "person" who violates or fails to act in
accordance with the terms, conditions, or requirements of a permit under authority of G.S. 143-215.6A.
Please note that each day a violation continues may be considered a separate violation, subject to
additional civil penalties.
As a result of the violations described in this Notice this office is considering a recommendation
for a civil penalty assessment to the Director of the Division. If you wish to present an explanation for the
violations cited, or if you believe there are other factors that should be considered, please send such
information to me in writing within ten (10) days following receipt of this letter. Your response will be
reviewed, and, if an enforcement action is still deemed appropriate, it will be forwarded to the Director
and included for consideration.
Should you have any questions, feel free to contact me at 704/235-2180 or via email at:
[e-mail]
R,
UNITrECS 5. 7At . f I :E
WC.:,t .at-' ��
!�'..µ� M P �bgw��� Mpt¢nM yUa➢i'J.^wiwrG� � ..»vY
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' �r :al Program Supervisor
• Sender: Please print your name, address, and ZIP 4 in this ==T'
�o z
DENR DWQ Aquifer Protection m !
610 E. Center Ave., Ste. 301 `n � -�
_UK
Mooresville NC 281115 �
-- - - - 00
{ � Itillf�ki�il!il{t!!Ililtl!iFlFli�i�i�!!t'lii�!�l�tii!IF!F!11!
Aorth Carolina 28138

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ALCHEM, INC I1FAUG �om
ATT.- ANDREW PITNER
8135 RED RD
ROCKWELL, NC 28138

• ALI..HEM, INC
It
8135 RED RD
ROCKWELL, NC 28138
Phone:[phone]
Pax: 704-279-8418
E-mail: [e-mail]
June 30, )200
NCDENR
610 East Center Drive
Suite 301
Mooresville, NC
Dear Mr. Pitner,
This letter is in response to the Letter of Inspection dated June 2, 2009.
ITEM 1 (Lagoon 3)
j} L� lu1 fJ V LE
0
AUG - 4 2�9
N- DE MRO
DWQ -A uifer Protection
In response to the NOV dated June 2, 2009, Lagoon #3 at the time of the inspection Lagoons 1 & 2 were cleaned out completely and
Lagoon #3 was 50% cleaned. Lagoon #3 does have 6 feet of Freeboard vertically and 40 feet horizontally, this has not changed since
June 1, 2008. As for the rest of the clean out of Lagoon #3 and the inspection by Gary Riblett from Delta Environmental is expected
to begin within the next 2 weeks with an anticipated completion date of September 1, 2009. This includes clean out and certification.
I would also like to state for the record this work on Lagoon #3 was not completed by the June 1, 2008 dead line due to weather and
moisture content of the lagoon. In short the material in the lagoon was not able to be handled, having the consistency of oatmeal.
Now due to the Summer and heat it is now dry enough to move with our equipment.
ITEM 2 (Permit Renewal)
For the late submission of the renewal for Permit # W00002702, Industrial Water Recycling System, there is no excuse for this and I
take full personal responsibility. Mrs. Peggy Finley was kind enough to send me another copy of the application. That I again mis-
placed, however I have obtained another copy which will be completed and turned into the DWQ Mooresville Office by August 6,
2009.
ITEM 3 (PH Log Reports)
This information was not available at the time of the inspection because Trent Tidwell had taken the binder containing the information
home and was out sick for several days afterward. Jason DeSiato was responsible for faxing this information to Mrs. Peggy Finley
which was not done. I was not aware that this had not been done, for this I apologize to Mrs. Finley. In the packet you have received
this information is now submitted.

V
ITEM 4(Vecietative Cover on all Lagoon Berms)
As there is no green vegetative cover on the Lagoon Berms, ALL berms do have Erosion Control Blankets installed on all bermed
areas. Though we have tried to grow grass, the area is just to large and vast to keep a constant maintenance and keep grass grow-
ing . I have submitted to the DWQ Mooresville Office several thousands of dollars worth of receipts for grass seed, straw and lime.
However our efforts to grow vegetative cover have been futile. I do want to reiterate that ALL berms do have Erosion Control Blan-
kets.
In closing I would once again like to apologize for the delay in the permit renewal, late submission of the PH reports and the delay in
responding to your Inspection Report.
If you have any further questions or would like to speak to me, please call at anytime 704-213-9436.
Sincerely
Robert Wolcott
Vice President

FROM :
Corporatg Office
2o42 Buic Philadelphus Road
Red Springs, NC 28377
Tel,910-843-PIZI 800-56-2-2944
Pax 910-843-5789
rf;;@semr.net
July 31, 2009
FAX NO. : Mar. 03 1999 12:58AM P1
ALCHEM, INC.
Mr. Andrew Pitner
Regional Environmental Supervisor
NCDENR Division of Water Quality
Mooresville Regional Office
610 East Center Ave.
Suite 301
Mooresville, NC 28115
Addendum to NOV-2009-PC-0470
Dear Mr. Pitaer:
gales and Manufacturing
8i35 Red Road
Rockwell, NC afit38
Tel. [phone] -- 800-462-2586
Fax [phone]
woleott_rC7q yahoo.com
Bob Wolcott has indicated to me that ALCHEM has furnished you with all of the reports
and information covered in your letter of July 23. Would you please let me know as soon
as possible if everything has not been covered.
Hest regards,
ALCHEM, INC.
6"
Randall F. Andrews,
President
ams

Huffman, Ellen
From:
Huffman, Ellen
Sent:
Wednesday, November 25, 2009 12:11 PM
To:
Pitner, Andrew
Subject:
FW: L432444.pdf -Adobe Acrobat Standard
Attachments:
L432444.pdf
Importance: High
Lincolnton lab explanation for TCLP.
-----Original Message -----
From: TBL/PAM HESTER [mailto:[e-mail]]
Sent: Wednesday, November 25, 2009 11:45 AM
To: Huffman, Ellen
Subject: Fw: L432444.pdf - Adobe Acrobat Standard
Importance: High
Ellen, I spoke with ESC... the ph had been converted to a dry weight basis and of course never
should have. The correct report is attached. Please let me know if you have any other
questions!
PAMELA S. HESTER
President, TBL Environmental Laboratory, Inc.
[phone] Phone
[phone] Fax
----- Original Message -----
From: "John Blackman" <[e-mail]>
To: "Pam Hester" <[e-mail]>; <[e-mail]>
Sent: Wednesday, November 25, 2009 11:23 AM
Subject: L432444.pdf - Adobe Acrobat Standard
1

*ESC
i
Pam Hester
TBL Laboratory
P.O. Box 589
Lumberton, NC 28359
Report Summary
Tuesday November 24, 2009
Report Number: L432444
Samples Received: 11/10/09
Client Project: TBL-2 0 7 93
Description:
12065 Lebanon Rd.
Mt. Juliet, TN 37122
[phone]
1-800-767-5859
Fax [phone]
Tax I.D. 62-0814289
Est. 1970
The analytical results in this report are based upon information supplied
by you, the client, and are for your exclusive use. f you have any
questions regarding this data package, please do not e.it to 1l
Entire Report Reviewed By:
John a epresen a ive
La bora tory Certifica tion Numbers ..
A2LA - 1461-01, AIHA - 100789, AL - 40660, CA - I-232 , CT - PH-0197, FL - E87487
GA - 923, IN - C-TN-01, KY - 90010, KYUST - 0016, NC - ENV375,DW21704, ND - R-140
NJ - TN002, NJ NELAP - TN002, SC - 84004, TN - 2006, VA - 00109, WV - 233
AZ - 0612, MN - 047-999-395, NY - 11742, WI - 998093910
Accreditation is only applicable to the test methods specified on each scope of accreditation held by ESC Lab Sciences.
This report may not be reproduced, except in full, without written approval from Environmental Science Corp.
Where applicable, sampling conducted by ESC is performed per guidance provided
in laboratory standard operating procedures: 060302, 060303, and 060304.
2 Samples Reported: 11/23/09 17:09 Revised: 11/24/09 10:36
Page 1 of 6

12065 Lebanon Rd.
Mt. Juliet,
TN 37122
[phone]
*ESC
1-800-767-5859
Fax [phone]
t•A•9 5•C•I-E-N•C•E•5
Tax I.D. 62-0814289
Est. 1970
REPORT
OF ANALYSIS
Pam Hester
November 24,2009
TBL Laboratory
P.O. Box 589
Lumberton, NC 28359
ESC
Sample #
L432444-01
Date Received November 10, 2009
Description
Site
ID
Sample ID SAND
Project
# TBL-20793
Collected By
Collection Date 11/08/09 16:00
Parameter Dry
Result
Det. Limit
Units
Method
Date
Dil.
Nitrate -Nitrite
BDL
3.6
mg/kg
9056
11/18/09
1
Phosphate as P
BDL
1.8
mg/kg
9056
11/18/09
1
Corrosivity
BDL
0.0
9040C
11/19/09
1
Cyanide
BDL
0.45
mg/kg
9012B
11/18/09
1
Ignitability
BDL
0.00
Deg. F
D93/1010A
11/19/09
1
Ammonia Nitrogen
BDL
9.1
mg/kg
350.1
11/17/09
1
pH
15.
0.0
su
9045D
11/17/09
1
Reactive CN (SW846 7.3.3.2)
BDL
0.230
mg/kg
9012B
11/18/09
1
Reactive Sulf.(SW846 7.3.4.1)
BDL
45.
mg/kg
9034/9030B
11/17/09
1
Kjeldahl Nitrogen, TKN
140
36.
mg/kg
351.2
11/18/09
1
Total Solids
100.
0.00
%
2540G
11/18/09
1
Mercury
BDL
0.036
mg/kg
7471
11/17/09
1
Aluminum
27000
9.1
mg/kg
6010B
11/18/09
1
Arsenic
BDL
3.6
mg/kg
6010B
11/19/09
2
Cadmium
BDL
0.45
mg/kg
6010B
11/18/09
1
Calcium
20000
45.
mg/kg
6010B
11/18/09
1
Chromium
22.
0.91
mg/kg
6010B
11/18/09
1
Copper
BDL
1.8
mg/kg
6010B
11/18/09
1
Lead
15.
0.45
mg/kg
6010B
11/18/09
1
Magnesium
110
9.1
mg/kg
6010B
11/18/09
1
Molybdenum
0.98
0.45
mg/kg
6010B
11/18/09
1
Nickel
3.6
1.8
mg/kg
6010B
11/18/09
1
Potassium
640
45.
mg/kg
6010B
11/18/09
1
Selenium
4.0
1.6
mg/kg
6010B
11/18/09
1
Silver
BDL
0.91
mg/kg
6010B
11/18/09
1
Sodium
140
45.
mg/kg
6010B
11/18/09
1
Zinc
3.1
2.7
mg/kg
6010B
11/18/09
1
Results listed are dry weight basis.
BDL - Below Detection Limit
Det. Limit - Practical Quantitation Limit(PQL)
Note:
This report shall not be reproduced, except in full, without the written approval from ESC.
The reported analytical results relate only to the sample submitted
Reported: 11/23/09 17:09 Revised: 11/24/09 10:36
L432444-01 (PH) - 8.3@20.2c
L432444-01 (IGNITABILITY) - Did Not Ignite @ 170 F
Page 2 of 6

*ESC
t
REPORT OF ANALYSIS
Pam Hester
TBL Laboratory
P.O. Box 589
Lumberton, NC 28359
Date Received November 10, 2009
Description
Sample ID SAND
Collected By
Collection Date 11/08/09 16:00
12065 Lebanon Rd.
Mt. Juliet, TN 37122
[phone]
1-800-767-5859
Fax [phone]
Tax I.D. 62-0814289
Est. 1970
November 24,2009
ESC Sample # : L432444-02
Site ID
Project TBL-20793
Parameter
Result
Det. Limit
Units
Limit
Method
Date/Time
By
Dil
TCLP Extraction
-
1311
11/18/09
0730
MVE
1
Mercury
BDL
0.0010
mg/l
0.20
7470A
11/18/09
1738
CLL
1
Arsenic
BDL
0.050
mg/l
5.0
6010B
11/18/09
2120
ALT
1
Barium
BDL
0.15
mg/1
100
6010B
11/18/09
2120
ALT
1
Cadmium
BDL
0.050
mg/1
1.0
6010B
11/18/09
2120
ALT
1
Chromium
BDL
0.050
mg/1
5.0
6010B
11/18/09
2120
ALT
1
Lead
BDL
0.050
mg/l
5.0
6010B
11/18/09
2120
ALT
1
Selenium
BDL
0.050
mg/1
1.0
6010E
11/18/09
2120
ALT
1
Silver
BDL
0.050
mg/l
5.0
6010B
11/18/09
2120
ALT
1
TCLP ZHE Extraction
-
1311
11/19/09
0744
MVE
1
TCLP Volatiles
Benzene
BDL
0.050
mg/l
0.50
8260B
11/20/09
0947
1
Carbon tetrachloride
BDL
0.050
mg/l
0.50
8260B
11/20/09
0947
1
Chlorobenzene
BDL
0.050
mg/l
100
8260B
11/20/09
0947
1
Chloroform
BDL
0.25
mg/l
6.0
8260B
11/20/09
0947
1
1,2-Dichloroethane
BDL
0.050
mg/l
0.50
8260B
11/20/09
0947
1
1,1-Dichloroethene
BDL
0.050
mg/1
0.70
8260B
11/20/09
0947
1
2-Butanone (MEK)
BDL
0.50
mg/l
200
8260B
11/20/09
0947
1
Tetrachloroethene
BDL
0.050
mg/l
0.70
8260B
11/20/09
0947
1
Trichloroethene
BDL
0.050
mg/l
0.50
8260B
11/20/09
0947
1
Vinyl chloride
BDL
0.050
mg/l
0.20
8260B
11/20/09
0947
1
Surrogate Recovery
Toluene-d8
101.
% Rec.
114.
8260B
11/20/09
0947
1
Dibromofluoromethane
103.
% Rec.
125.
8260B
11/20/09
0947
1
a,a,a-Trifluorotoluene
104.
% Rec.
114.
8260B
11/20/09
0947
1
4-Bromofluorobenzene
99.0
% Rec.
128.
8260B
11/20/09
0947
1
TCLP Pesticides
Chlordane
BDL
0.0050
mg/l
0.030
8081A
11/20/09
0357
CSU
1
Endrin
BDL
0.0050
mg/1
0.020
8081A
11/20/09
0357
CSU
1
Heptachlor
BDL
0.0050
mg/l
0.0080
8081A
11/20/09
0357
CSU
1
Lindane
BDL
0.0050
mg/l
0.40
8081A
11/20/09
0357
CSU
1
Methoxychlor
BDL
0.0050
mg/l
10.
8081A
11/20/09
0357
CSU
1
Toxaphene
BDL
0.010
mg/l
0.50
8081A
11/20/09
0357
CSU
1
Decachlorobiphenyl
35.2
% Rec.
123.
8081A
11/20/09
0357
CSU
1
Tetrachloro-m-xylene
35.7
% Rec.
114.
8081A
11/20/09
0357
CSU
1
TCLP Herbicides
2,4,5-TP (Silvex)
BDL
0.0020
mg/l
1.0
8151A
11/19/09
1128
CBB
1
2,4-D
BDL
0.0020
mg/1
10.
8151A
11/19/09
1128
CBB
1
Page 3 of 6

*ESC-
L-A�Bt
Pam Hester
TBL Laboratory
P.O. Box 589
Lumberton, NC 28359
Date Received
Description
Sample ID
Collected By
Collection Date
November 10, 2009
SAND
11/08/09 16:00
REPORT OF ANALYSIS
12065 Lebanon Rd.
Mt. Juliet, TN 37122
[phone]
1-800-767-5859
Fax [phone]
Tax I.D. 62-0814289
Est. 1970
November 24,2009
ESC Sample # : L432444-02
Site ID
Project TBL-20793
Parameter Result Det. Limit Units Limit Method Date/Time By Dil
Surrogate Recovery
2,4-Dichlorophenyl Acetic Acid
84.2
% Rec.
8151A
11/19/09
1128
CBB
1
TCLP Semi-Volatiles
1,4-Dichlorobenzene
BDL
0.10
mg/l
7.5
8270C
11/19/09
1805
LSB
1
2,4-Dinitrotoluene
BDL
0.10
mg/l
0.13
8270C
11/19/09
1805
LSB
1
Hexachlorobenzene
BDL
0.10
mg/l
0.13
8270C
11/19/09
1805
LSB
1
Hexachloro-1,3-butadiene
BDL
0.10
mg/l
0.50
8270C
11/19/09
1805
LSB
1
Hexachloroethane
BDL
0.10
mg/1
3.0
8270C
11/19/09
1805
LSB
1
Nitrobenzene
BDL
0.10
mg/l
2.0
8270C
11/19/09
1805
LSB
1
Pyridine
BDL
0.10
mg/l
5.0
8270C
11/19/09
1805
LSB
1
3&4-Methyl Phenol
BDL
0.10
mg/1
400
8270C
11/19/09
1805
LSB
1
2-Methylphenol
BDL
0.10
mg/l
200
8270C
11/19/09
1805
LSB
1
Pentachlorophenol
BDL
0.10
mg/l
100
8270C
11/19/09
1805
LSB
1
2,4,5-Trichlorophenol
BDL
0.10
mg/1
400
8270C
11/19/09
1805
LSB
1
2,4,6-Trichlorophenol
BDL
0.10
mg/l
2.0
8270C
11/19/09
1805
LSB
1
Surrogate Recovery
2-Fluorophenol
28.8
% Rec.
87.0
8270C
11/19/09
1805
LSB
1
Phenol-d5
18.5
% Rec.
67.0
6270C
11/19/09
1805
LSB
1
Nitrobenzene-d5
44.5
% Rec.
120.
8270C
11/19/09
1805
LSB
1
2-Fluorobiphenyl
56.5
% Rec.
122.
8270C
11/19/09
1805
LSB
1
2,4,6-Tribromophenol
71.6
% Rec.
148.
82-70C
11/19/09
1805
LSB
1
p-Terphenyl-dl4
62.7
% Rec.
149.
8270C
11/19/09
1805
LSB
1
BDL - Below Detection Limit
Det. Limit - Estimated Quantitation Limit(EQL)
Limit - Maximum Contaminant Level as established by the US EPA
Note:
The reported analytical results relate only to the sample submitted.
This report shall not be reproduced, except in full, without the written approval from ESC.
Reported: 11/23/09 17:09 Revised: 11/24/09 10:36
Page 4 of 6

Sample
Number
L432444-01
Work
Group
WG451131
Attachment A
List of Analytes with QC Qualifiers
Sample
Tvpe Analvte
SAMP Arsenic
Run
ID Qualifier
R1001128 0
Page 5 of 6

Attachment B
Explanation of QC Qualifier Codes
Qualifier Meaning
(ESC) Sample diluted due to matrix interferences that impaired the ability
to make an accurate analytical determination. The detection limit is
elevated in order to reflect the necessary dilution.
Qualifier Report Information
ESC utilizes sample and result qualifiers as set forth by the EPA Contract Laboratory Program and
as required by most certifying bodies including NELAC. In addition to the EPA qualifiers adopted
by ESC, we have implemented ESC qualifiers to provide more information pertaining to our analytical
results. Each qualifier is designated in the qualifier explanation as either EPA or ESC.
Data qualifiers are intended to provide the ESC client with more detailed information concerning
the potential bias of reported data. Because of the wide range of constituents and variety of
matrices incorporated by most EPA methods,it is common for some compounds to fall outside of
established ranges. These exceptions are evaluated and all reported data is valid and useable
unless qualified as W (Rejected).
Definitions
Accuracy - The relationship of the observed value of a known sample to the
true value of a known sample. Represented by percent recovery and
relevant to samples such as: control samples, matrix spike recoveries,
surrogate recoveries, etc.
Precision - The agreement between a set of samples or between duplicate samples.
Relates to how close together the results are and is represented by
Relative Percent Differrence.
Surrogate - Organic compounds that are similar in chemical composition, extraction,
and chromotography to analytes of interest. The surrogates are used to
determine the probable response of the group of analytes that are chem-
ically related to the surrogate compound. Surrogates are added to the
sample and carried through all stages of preparation and analyses.
TIC - Tentatively Identified Compound: Compounds detected in samples that are
not target compounds, internal standards, system monitoring.compounds,
or surrogates.
Page 6 of 6

Summary of Remarks For Samples Printed
11/24/09 at 10:36:24
TSR Signing Reports: 151
R5 - Desired TAT
Per Set -- MTLPREP-15, DISPOSAL-5, SHIPPING-30 - Report only to Pam Hester. Do not change
Report TO:
Sample: L432444-01 Account: TBLLAB Received: 11/10/09 09:00 Due Date: 11/19/09 00:00 RPT Date: 11/23/09 17:09
Sample: L432444-02 Account: TBLLAB Received: 11/10/09 09:00 Due Date: 11/19/09 00:00 RPT Date: 11/23/09 17:09

'R7ROM
' fyx CA
Date and Time:
To:
Company.
r+/YY 7Vn
FAX NO. :
:Tun`' _ 26 1�9'3� 03: 28AM��P1r i
ALCHEM, INC.
8135 Red Road
Rockwell, NC 28138
ffl,R6Ne, 704-279-7908 gaX 704-279-8418
rfa a@semr-net
FAX TRANSMITTAL
%'Vitt runy. ALUt1 tm' IN U.
Phone No.: 704-279-7908
Fax No.: 704-279-8418
No. of Pages: , including cover
ti C-1-71, �f
tAIZ
alao

,VROM : FAX NO. : Jun. 26 1999 03:28AM P2
11/24/2009 13:07 9106718837 TSL PAGE 01
o
240i W. 5& St PO E30X Bag
L=bartan, NC 29359 t_uMbertan, NC 28359
Phone: 94C-73"i90 FAX 91"71-8937
dap„per I J may, rytr ) fb L ,yam
lax TranpmItW
ROM: w ..-Ta�K�echt , bate:
eompanyr�--_rRL.., ...._ Number of pages--.�
G For Review 4 Plema Comment ❑ Pletme Reply
COrVIMENT5:

,FROM :
11/24/2905 13:07 910671BB37
Pem N4'AtO4
TBL Laboratory
P.O. Box sag
Lu>+tbdrte", NC RoaS9
FAX NO. Jun. 26 1999 03:29AM P3
TBL PAGE 02
0
Report stl=ary
Tuesday November 21, 2009
Report Number: L432444
Samples Received: X 1/ 1 0/ 0 9
Client Project: TBL-20793
12065 uptp npn Ro.
Mt. anliet, TIZ 37122
(615) 77a-5+15e
1-eao-7a�.9859
Yax (6101 758-5859
Tax I.e. o8-Og14298
Eat. 1970
The analytical results in this report aze based upon inf=atlon supplied
by yo�1, hO Client, and are for your AXClueive use
. ou haves
questions regarding this data package, plaaae do neat a It a an lyJ,.
Fnr,xre Report Reviewed By:
4abOratoryCerfiffcafion Numbers 7ohn 1 ra �n a eve
A2LA - 1461-01, A7Ht1 - 100799 AL - 40560, CA - 1-232 , Cx - PS-0197, FL - E87487
GA - 923, IN - C-TN-D1, KY - 9001D, KYUST - 0016, NG - ENV375,DN21704, ND - R-140
NJ - TN?OSi NJ NELAP - TNOpp2, 3C - 8&b04, TN - 2006, VA,233
AL - 06 2, MN - 047-999-395, NY 11742, w2 - 998093910
Acuod10aLian ]gyp om y applicable to ;hc t@ht met OO apecificd on narh scope of AcecCC r.A%&an he.io by ESC Lab acicnaaq,
Tnla report may neat bN RRpf7041jC:&d. except In full, wlchout -:1"CR 4P9rovP1 ream &nvironmental iv,ence coop.
Where applicab.iw, eamPlinq agp41U#1;vQ by g66 Is CA. -formed par guidance peovidad
in I&G.tatory atantlgYQ 9pgi'BG1t1v pvoaad�arRA= 060302. 060303, and N60304.
R Samplao RtAar9ad, 11/230p 17,09 Revised: 11/24/05 10,3e
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vFROM :
FAX NO. Jun. 26 1999 03:30AM P7
11/24/2009 13t07 9106718837 TBL
PAGE 86
Attachment A
L3at of AnaLYtes Ni.th QC Qualil'iarm
sample Work Sample Run
Number Group Typtl Analyte. M Quolifie=
7j432444-01 NG451131 shMy Arsenic R100113$ o
rage 5 of 6

Q, `fL
01196
2401 W. Fifth St.
Lumberton, NC 28358 R'O'k A , JI n� cap ��g ::: ? NO
4
ENVMOMXZWAL
Rp
rn�Afs at A4{Aw:f,
Pam; aEIU `S4' i �-�n R�Bc!EBOMW.
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r-1
1 �
0
LL
t

12065 Lebanon Rd.
Mt. Juliet, TN 37122
[phone]
OESC
1-800-767-5859
Fax [phone]
L-A-9 5-C•I-E•N-C•E•S
Tax I.D. 62-0819289
° '
Est. 1970
REPORT OF ANALYSIS
Pam Hester
November 24,2009
TBL Laboratory
P.O. Box 589
Lumberton, NC 28359
ESC Sample # L432444-01
Date Received November 10, 2009
Description
Site ID
Sample ID SAND
Project # TBL-20793
Collected By
Collection Date 11/08/09 16:00
Parameter Dry Result Det. Limit
Units Method Date Dil.
Nitrate -Nitrite
BDL
3.6
mg/kg
9056
11/18/09
1
Phosphate as P
BDL
1.8
mg/kg
9056
11/18/09
1
Corrosivity
BDL
0.0
9040C
11/19/09
1
Cyanide
BDL
0.45
mg/kg
9012B
11/18/09
1
Ignitability
BDL
0.00
Deg. F
D93/1010A
11/19/09
1
Ammonia Nitrogen
BDL
9.1
mg/kg
350.1
11/17/09
1
pH
8.3
0.0
su
9045D
11/17/09
1
Reactive CN (SW846 7.3.3.2)
BDL
0.230
mg/kg
9012B
11/18/09
1
Reactive Sulf.(SW846 7.3.4.1)
BDL
45.
mg/kg
9034/9030B
11/17/09
1
Kjeldahl Nitrogen, TKN
140
36.
mg/kg
351.2
11/18/09
1
Total Solids
100.
0.00
%
2540G
11/18/09
1
Mercury
BDL
0.036
mg/kg
7471
11/17/09
1
Aluminum
27000
9.1
mg/kg
6010B
11/18/09
1
Arsenic
BDL
3.6
mg/kg
6010B
11/19/09
2
Cadmium
BDL
0.45
mg/kg
6010B
11/18/09
1
Calcium
20000
45.
mg/kg
6010B
11/18/09
1
Chromium
22.
0.91
mg/kg
6010B
11/18/09
1
Copper
BDL
1.8
mg/kg
6010B
11/18/09
1
Lead
15.
0.45
mg/kg
6010B
11/18/09
1
Magnesium
110
9.1
mg/kg
6010B
11/18/09
1
Molybdenum
0.98
0.45
mg/kg
6010B
11/18/09
1
Nickel
3.6
1.8
mg/kg
6010B
11/18/09
1
Potassium
640
45.
mg/kg
6010B
11/18/09
1
Selenium
4.0
1.8
mg/kg
6010B
11/18/09
1
Silver
BDL
0.91
mg/kg
6010B
11/18/09
1
Sodium
140
45.
mg/kg
6010B
11/18/09
1
Zinc
3.1
2.7
mg/kg
6010B
11/18/09
1
Results listed are dry weight basis.
BDL - Below Detection Limit
Det. Limit - Practical Quantitation Limit(PQL)
Note:
This report shall not be reproduced, except in full, without the written approval from ESC.
The reported analytical results relate only to the sample submitted
Reported: 11/23/09 17:09 Revised: 11/24/09 10:36
L432444-01 (PH) - 8.3@20.2c
L432444-01 (IGNITABILITY) - Did Not Ignite @ 170 F
Page 2 of 6

.r
OESC
t
Pam Hester
TBL Laboratory
P.O. Box 589
Lumberton, NC 28359
Report Summary
Tuesday November 24, 2009
Report Number: L432444
Samples Received: 11/10/09
Client Project: TBL-2 0 7 93
Description:
12065 Lebanon Rd.
Mt. Juliet, TN 37122
[phone]
1-800-767-5859
Fax [phone]
Tax I.D. 62-0814289
Est. 1970
The analytical results in this report are based upon information supplied
by you, the client, and are for your exclusive use. f you have any
questions regarding this data package, please do not l e it to I'LL
Entire Report Reviewed By:
John aRepresentative
Laboratory Certrfica tion Numbers
A2LA - 1461-01, AIHA - 100789, AL - 40660, CA - I-232 , CT - PH-0197, FL - E87487
GA - 923, IN - C-TN-01, KY - 90010, KYUST - 0016, NC - ENV375,DW21704, ND - R-140
NJ - TN002, NJ NELAP - TN002, SC - 84004, TN - 2006, VA - 00109, WV - 233
AZ - 0612, MN - 047-999-395, NY - 11742, WI - 998093910
Accreditation is only applicable to the test methods specified on each scope of accreditation held by ESC Lab Sciences.
This report may not be reproduced, except in full, without written approval from Environmental Science Corp.
Where applicable, sampling conducted by ESC is performed per guidance provided
in laboratory standard operating procedures: 060302, 060303, and 060304.
2 Samples Reported: 11/23/09 17:09 Revised: 11/24/09 10:36
Page 1 of 6

wo
Pam Hester
TBL Laboratory
P.O. Box 589
Lumberton, NC 28359
Date Received
Description
Sample ID
Collected By
Collection Date
November 10, 2009
SAND
11/08/09 16:00
REPORT OF ANALYSIS
12065 Lebanon Rd.
Mt. Juliet, TN 37122
[phone]
1-800-767-5859
Fax [phone]
Tax I.D. 62-0814289
Est. 1970
November 24,2009
ESC Sample # : L432444-02
Site ID
Project TBL-20793
Parameter
Result
Det. Limit
Units
Limit
Method
Date/Time
By
Dil
TCLP Extraction
-
1311
11/18/09
0730
MVE
1
Mercury
BDL
0.0010
mg/1
0.20
7470A
11/18/09
1738
CLL
1
Arsenic
BDL
0.050
mg/l
5.0
6010B
11/18/09
2120
ALT
1
Barium
BDL
0.15
mg/l
100
6010B
11/18/09
2120
ALT
1
Cadmium
BDL
0.050
mg/l
1.0
6010B
11/18/09
2120
ALT
1
Chromium
BDL
0.050
mg/l.
5.0
6010B
11/18/09
2120
ALT
1
Lead
BDL
0.050
mg/l
5.0
6010B
11/18/09
2120
ALT
1
Selenium
BDL
0.050
mg/1
1.0
6010B
11/18/09
2120
ALT
1
Silver
BDL
0.050
mg/l
5.0
6010B
11/18/09
2120
ALT
1
TCLP ZHE Extraction
-
1311
11/19/09
0744
MVE
1
TCLP Volatiles
Benzene
BDL
0.050
mg/l
0.50
8260B
11/20/09
0947
1
Carbon tetrachloride
BDL
0.050
mg/l
0.50
8260B
11/20/09
0947
1
Chlorobenzene
BDL
0.050
mg/1
100
8260B
11/20/09
0947
1
Chloroform
BDL
0.25
mg/1
6.0
8260B
11/20/09
0947
1
1,2-Dichloroethane
BDL
0.050
mg/l
0.50
8260B
11/20/09
0947
1
1,1-Dichloroethene
BDL
0.050
mg/1
0.70
8260B
11/20/09
0947
1
2-Butanone (MEK)
BDL
0.50
mg/1
200
8260B
11/20/09
0947
1
Tetrachloroethene
BDL
0.050
mg/l
0.70
8260B
11/20/09
0947
1
Trichloroethene
BDL
0.050
mg/l
0.50
8260B
11/20/09
0947
1
Vinyl chloride
BDL
0.050
mg/l
0.20
8260B
11/20/09
0947
1
Surrogate Recovery
Toluene-d8
101.
% Rec.
114.
8260B
11/20/09
0947
1
Dibromofluoromethane
103.
% Rec.
125.
8260B
11/20/09
0947
1
a,a,a-Trifluorotoluene
104.
% Rec.
114.
8260B
11/20/09
0947
1
4-Bromofluorobenzene
99.0
% Rec.
128.
8260B
11/20/09
0947
1
TCLP Pesticides
Chlordane
BDL
0.0050
mg/l
0.030
8081A
11/20/09
0357
CSU
1
Endrin
BDL
0.0050
mg/l
0.020
8081A
11/20/09
0357
CSU
1
Heptachlor
BDL
0.0050
mg/l
0.0080
8081A
11/20/09
0357
CSU
1
Lindane
BDL
0.0050
mg/l
0.40
8081A
11/20/09
0357
CSU
1
Methoxychlor
BDL
0.0050
mg/l
10.
8081A
11/20/09
0357
CSU
1
Toxaphene
BDL
0.010
mg/1
0.50
8081A
11/20/09
0357
CSU
1
Decachlorobiphenyl
35.2
% Rec.
123.
8081A
11/20/09
0357
CSU
1
Tetrachloro-m-xylene
35.7
% Rec.
114.
8081A
11/20/09
0357
CSU
1
TCLP Herbicides
2,4,5-TP (Silvex)
BDL
0.0020
mg/l
1.0
8151A
11/19/09
1128
CBB
1
2,4-D
BDL
0.0020
mg/l
10.
8151A
11/19/09
1128
CBB
1
Page 3 of 6

JOESC
!LA•® S•C•I-E•N•C^E•S
REPORT OF ANALYSIS
Pam Hester
TBL Laboratory
P.O. Box 589
Lumberton, NC 28359
r
12065 Lebanon Rd.
Mt. Juliet, TN 37122
[phone]
1-800-767-5859
Fax [phone]
Tax I.D. 62-0814289
ESt. 1970
November 24,2009
ESC
Sample
# L432444-02
Date Received November 10, 2009
Description
Site
ID
Sample ID SAND
Project
TBL-20793
Collected By
Collection Date 11/08/09 16:00
Parameter
Result
Det. Limit
Units
Limit
Method
Date/Time
By
Dil
Surrogate Recovery
2,4-Dichlorophenyl Acetic Acid
84.2
% Rec.
8151A
11/19/09
1128
CBB
1
TCLP Semi-Volatiles
1,4-Dichlorobenzene
BDL
0.10
mg/1
7.5
8270C
11/19/09
1805
LSB
1
2,4-Dinitrotoluene
BDL
0.10
mg/l
0.13
8270C
11/19/09
1805
LSB
1
Hexachlorobenzene
BDL
0.10
mg/1
0.13
8270C
11/19/09
1805
LSB
1
Hexachloro-1,3-butadiene
BDL
0.10
mg/1
0.50
8270C
11/19/09
1805
LSB
1
Hexachloroethane
BDL
0.10
mg/1
3.0
8270C
11/19/09
1805
LSB
1
Nitrobenzene
BDL
0.10
mg/1
2.0
8270C
11/19/09
1805
LSB
1
Pyridine
BDL
0.10
mg/1
5.0
8270C
11/19/09
1805
LSB
1
3&4-Methyl Phenol
BDL
0.10
mg/l
400
8270C
11/19/09
1805
LSB
1
2-Methylphenol
BDL
0.10
mg/1
200
8270C
11/19/09
1805
LSB
1
Pentachlorophenol
BDL
0.10
mg/l
100
8270C
11/19/09
1805
LSB
1
2,4,5-Trichlorophenol
BDL
0.10
mg/l
400
8270C
11/19/09
1805
LSB
1
2,4,6-Trichlorophenol
BDL
0.10
mg/l
2.0
8270C
11/19/09
1805
LSB
1
Surrogate Recovery
2-Fluorophenol
28.8
% Rec.
87.0
8270C
11/19/09
1805
LSB
1
Phenol-d5
18.5
% Rec.
67.0
8270C
11/19/09
1805
LSB
1
Nitrobenzene-d5
44.5
% Rec.
120.
8270C
11/19/09
1805
LSB
1
2-Fluorobiphenyl
56.5
% Rec.
122.
8270C
11/19/09
1805
LSB
1
2,4,6-Tribromophenol
71.6
% Rec.
148.
8270C
11/19/09
1805
LSB
1
p-Terphenyl-dl4
62.7
% Rec.
149.
8270C
11/19/09
1805
LSB
1
BDL - Below Detection Limit
Det. Limit - Estimated Quantitation Limit(EQL)
Limit - Maximum Contaminant Level as established by the US EPA
Note:
The reported analytical results relate only to the sample submitted.
This report shall not be reproduced, except in full, without the written approval from ESC.
Reported: 11/23/09 17:09 Revised: 11/24/09 10:36
Page 4 of 6
IT

Sample
Number
Attachment A
List of Analytes with QC Qualifiers
Work Sample
Group Type Analyte
L432444-01 WG451131 SAMP Arsenic
Run
ID Qualifier
R1001128
Page 5 of 6

Attachment B
Explanation of QC Qualifier Codes
Qualifier Meaning
(ESC) Sample diluted due to matrix interferences that impaired the ability
to make an accurate analytical determination. The detection limit is
elevated in order to reflect the necessary dilution.
Qualifier Report Information
ESC utilizes sample and result qualifiers as set forth by the EPA Contract Laboratory Program and
as required by most certifying bodies including NELAC. In addition to the EPA qualifiers adopted
by ESC, we have implemented ESC qualifiers to provide more information pertaining to our analytical
results. Each qualifier is designated in the qualifier explanation as either EPA or ESC.
Data qualifiers are intended to provide the ESC client with more detailed information concerning
the potential bias of reported data. Because of the wide range of constituents and variety of
matrices incorporated by most EPA methods,it is common for some compounds to fall outside of
established ranges. These exceptions are evaluated and all reported data is valid and useable
unless qualified as 'R' (Rejected).
Definitions
Accuracy - The relationship of the observed value of a known sample to the
true value of a known sample. Represented by percent recovery and
relevant to samples such as: control samples, matrix spike recoveries,
surrogate recoveries, etc.
Precision - The agreement between a set of samples or between duplicate samples.
Relates to how close together the results are and is represented by
Relative Percent Differrence.
Surrogate - Organic compounds that are similar in chemical composition, extraction,
and chromotography to analytes of interest. The surrogates are used to
determine the probable response of the group of analytes that are chem-
ically related to the surrogate compound. Surrogates are added to the
sample and carried through all stages of preparation and analyses.
TIC - Tentatively Identified Compound: Compounds detected in samples that are
not target compounds, internal standards, system monitoring compounds,
or surrogates.
Page 6 of 6

Summary of Remarks For Samples Printed
11/24/09 at 10:36:24
TSR Signing Reports: 151
R5 - Desired TAT
Per Set -- MTLPREP-15, DISPOSAL-5, SHIPPING-30 - Report only to Pam Hester. Do not change
Report TO:
Sample: L432444-01 Account: TBLLAB Received: 11/10/09 09:00 Due Date: 11/19/09 00:00 RPT Date: 11/23/09 17:09
Sample: L432444-02 Account: TBLLAB Received: 11/10/09 09:00 Due Date: 11/19/09 00:00 RPT Date: 11/23/09 17:09

A74iLA
RC®ENR
North Carolina Department of Environment and Natural Resources
Beverly Eaves Perdue Coleen H. Sullins Dee Freeman
Governor Director, Division of Water Quality Secretary
November 5, 2009
Alchem Incorporated
2042 Buie Philadelpus Rd.
Red Springs, NC 28377
Attention: Randall Andrews
Subject: Extension Request for
Additional Information Request for
Notice of Violation (NOV) and
Notice of Intent (NOI) to Enforce
NOV-2009-PC-0470
Permits # W00002702, W00016338
Recycle System, Monofil
Rockwell, Rowan County
Dear Mr. Andrews:
We are in receipt of faxed letter responses of October 27, 2009, from you and of October 30,
2009, from Bob Wolcott. Based on these responses and the request for additional time, the Division of
Water Quality will extend the due date to respond to the subject additional information request to
November 19, 2009. No additional extensions will be granted.
Should you have any questions, feel free to contact me at 704/235-2180 or via email at:
Andrew. [e-mail]
Sincerely,
Andrew H. Pitner, P.G.
Environmental Program Supervisor
Cc: Robert Wolcott, Alchem Incorporated, 8135 Red Road, Rockwell, North Carolina 28138 (also by fax)
MRO-APS Files
DWQ-APS Land Application Unit, Raleigh
Anita LeVeaux, AG Office
610 East Center Avenue, Suite 301, Mooresville, North Carolina 28115
Phone: [phone] FAX: [phone] Internet: www.ncwaterquality.org
An Equal Opportunity 1 Affirmative Action Employer - 50% Recycled 110% Post Consumer Paper
NofthCarolina
a&rt714f

Nr:DENR MRO
Fax:[phone]
T r- a n s m 1 -t C o n f . F: k7-- r + +
B
G
Fax/Phone Number
Mode
Start
T
19108435789
NORMAL
5,15:47
0
L:
NCD + EN
North Carolina Department of Environment ald Natural Resources
due Coleen H. Sullins I)ee Freeman
Director, Division of Water Gu�.Iity Secretary
November 5,2009
)rated
idelpus Rd.
IC -28377
lal[ Andrews
Subject: Extension Request for
A4ditional Information Request for
N�tice of Violation (NOV) and
N )tice of lntent,(NOI) to [ riforce
N DV-2009-PC-0470
P rrnits # W00002702, W00016338
R cycle System. Monofil
PI ckwell, Rowan County
beae,I Ar.'And iews:
We ar in receipt of faxed letter responses of October 21 2009, from you and of C)ctober 30,
2009, from Bc b Wolcott. Based on these responses and the reqpest for additional time, the Division of
Water Quality will extend the due date to respond to the subject �dcljtional information request to
November 19 2009. No additional extensions will I be grant6d.
S.houl you have any questions, feel free to contact me 4 704/235--2180 or via email at
[e-mail]
Sin erely,
Andrew H F itner P G.
Enyirorlmen�al Program Supervisor
ly Eaves
rnor
, -
I iBui,e Pt
Sprinig's,

FRON FAX NO. May. 29 1999 01:20AM P1
AI�CHEM, INC.
C�rpora a Clffice Sales and 1VL• nufac rin
2042 Buie Philadelplzus Road 813TZ
Red Springs, NC 2$377 Rockwell,
NCC z8z38
Tel. 9io-8A3-2121 -• 800-522-2944 TeL 7v4-279 79�8 Soo-yg88
Fax 704-279-a79-84z8
q?—ax-Wfo=843-5789 w(,)[e-mail]
[e-mail]
October 27, 2009
Mr. Andrew Pitner
Regional Envirom-mental Supervisor
NCDENR Division of Water Quality
Mooresville Regional Office
610 East Center Ave.
Suite 301
Mooresville, NC 28115
Additional Information Request for NOV-2009-PC-0470
Dear Mr. Pitner:
I have your letter of October 13. Please be assured that we are working on this and trying
to put all of the information together for you. I will be writing you by the end of the
week to address all of the problems in the letter.
Best regards,
ALCHEM, INC.
Randall F. Andrews,
President
ams

NCDENR MRO
Fax:[phone]
= =* T r a n s m i rt Canf_ F, t + +
P.1
Fax/Phone Number
Mode
Start
T
7CI42798418
NORMAL
5, 15: 48
0
CCDENR
North Carolina Department of Environment a0d Natural Resources
.E E,Werly Eaves PE
vernor
Icoem IncoJ
M2 Buie PF
ed Springs,
I6ntion: Ra
!rdue Coleen H. Sullins i
Director, Division of Water Cuolity
Dee Freeman
Secretary
November 5, 2009
iorated
ladelpus Rd.
qC-28377
dall Andrews
Subject: F-plension Request for
Atlditional Inforrnation Request for
Notice of Violation (NOV) and
Nlotice of Intent (NOI) to f nforce
NOI V-2009-13C-04 TO
Plermits # W00002702, WQ0016338
Wcycle System. Monofil
Rjockwell, Rowan County
iDeai- Mr_ And ews:
We ara in receipt of faxed letter responses of October 27i, 2009, from you and of October 30,
,2009, from Bob, Wolcott. Based on these responses and the request for additional time, the Division of
,Water Quality will extend the due date to respond to the subject odditionw information request to
,November 19, 2009. No additional extensions will be granted.
I. i
Should you have any questions, feel free to contact me 4t 704/235-2180 or via ernad at
�Andrew.PitnerQncdenr.gov '
Sin erely,
t�
Andrew.H Pitner. P G
Environmental Program Supervisor

10/30/2009 09:55 9107070319 DENISE WOLCOTT PAGE 02/02
ALCHEhl INC
8135 RED RD
ROCKWELL, NC 28138 Phone: [phone]
F x � UC2-ZSi=84# 8
E-mail:
[e-mail]
October 30, 2009
RE: Response to October 13, 2009 Request
Dear Mr. Pitner,
I have just received your request .for this information 48 hours ago. I am not sure that you or
your colleagues are aware of the fact that I have not been operating out of our Rockwell, NC
facility for the past 2 months due to a family illness. It is at this time that I would like to re,
quest a 10 business day extension to compile all data that is being requested. All of this data, is
available and was just received by me yesterday afternoon October 29, 2009.
.In closing I would like to thank you in. advance and if you have any questions please feel free
to call me at 704-213-9436.
Since ely,
BOB WOLCOTT
VICE PRESIDENT

_ .. 4
10/30/2009 09:55
9107070319
DENISE WOLCOTT
PAGE 01/02
Fax 2009
Attention: —
A n d re (Ai rya I-ne r—
1D 4 qca (9 3_ t 0 0 `f"
Phone:( )
FXT:
Comment:
ALCHEM
, INC
8135 RED RD.,
ROCKWELL, NC
28138
704-279-7908
UrgentQ Reply Q Reviews` ASAPLI
From: DENISE WOLCOTT
OFFICE MANAGER
Date:
16 - 3c),
Phone:
" q43, ,
9 ( 910 )707=0319
. w 40m42 h Am ber
Total Pages Sent: ( )

PLEASE PRINT CLEARLY OR TYPE
STATE OF NORTH CAROLINA IN THE OFFICE OF
ADMINISTRATIVE HEARINGS
COUNTY OF (1) ROWAN ,v�'= .•
(2) ALCHEM INC.
NOV-7one-pe-0470
(your name) PETITIONER,
(3)_ NCDENR
RESPONDENT.
(The State agency or board about which you are complaining)
JAN 2010
PETITIO "-IT 2.
FOI.� !► t t'� r j tV...-.Sr4SJt�*5
CONTESTED CASE HEARING
I hereby ask for a contested case hearing as provided for by North Carolina General Statute § 15OB-23 because the Respondent has:
(Briefly state facts showing how you believe you have been harmed by the State agency or board.)
Failed to take into account that ALCHEM has a negative net worth. Failed to take into
account that we must lay off employees to pay this fine. ALCHEM has spent in excess
of $250,000 on environmental work in the last two years
(4) Amount in controversy S 27,024.65 (if applicable)
(If more space is needed. attach additional pages.)
(5) Because of these facts, the State agency or board has: (check at least one from each column)
deprived me of property; X exceeded its authority or jurisdiction;
_ordered me to pay a fine or civil penalty; or X acted erroneously;
otherwise substantially prejudiced my rights; AND _X failed to use proper procedure;
X acted arbitrarily or capriciously; or
_failed to act as required by law or rule.
(6) Date: 1;.20-10 (7) Your phone number:( 910) 843-2121
(8) Print your full address: 2042 BUIE PHILADLEPHUS RD. RED SPRINGS NC 28377
(street address/p.o, box)
(9) Print your name: `Randall Andrews
00) Your signature:
(city) (state) (zip)
You must mail or deliver a COPY of this Petition to the State agency or board named on line (3) of this form. You should contact the agency or
board to determine the name of the person to be served.
CERTIFICATE OF SERVICE
I certify that this Petition has been served on the State agency or board named below by depositing a copy of it with the United States Postal Service
with sufficient postage affixed OR by delivering it to the named agency or board:
(11}
(name of person served) (12) NCDENR
(13) (State agency or board listed oo line 3) 1601 Mail Service f:pnt- a,- .. .
(street address/p.o. box)
(14) This the —2 0 day of
(I5) Deal, 141
20 10 .
(city)
code)
tyour signature)
When you have completed this form, you MUST mail or deliver the ORIGINAL AND ONE COPY to the Office of Administrative Hearings, 6714
Mail Service Center, Raleigh, NC 27699-6714.
H-06 (01/10)

�gorregvndence Profile Cover Sheet
y
INTWU
AM4 ,
6V
NCDENFt
Correspondence Tracking System
00301201003591
summary
Petition for a Contesed Case Hearing: Alchem, Inc. v. DWQ (NOV-2009-PC-0470)
Received 01/22/2010 via Letter
Legal issue for Mary Penny Thompson
Issued Ol/20/2010 by Randall Andrews of Alchem, Inc.
Page 1 of 1
_...._..._.____....._....____._......._...._.........._._...**'For Recipient Use Only *� .._. ..._....._._._..._...__.__..........._.
To:
Date: / /
Respond By:
Please' Prepare a reply for my signature and return to me.
Reply, noting the letter was referred to you by me. *
Prepare a reply for the Governor's signature and return to me.
Reply, noting the letter was referred to you by the Governor.
For your information.
Take appropriate action
Note and file.
Note and return to me.
Note and see me about this.
Your comments and/or recommendations.
'Copy to Secretary's Office
Remarks
http://ibown.enr.state.nc.us/os/dWprint.do?dispatch=crsdProfile&id=3591 1/25/2010

Michael F, Easley, Governor
William G. Ross Jr., Secretary
North Carolina Department of Environment and Natural Resources
June 11, 2008
CERTIFIED MAIL # 7006 2150 0003 5466 7264
RETURN RECEIPT REQUESTED
Randall F. Andrews
Alchem Incorporated
8135 Red Road
Rockwell, NC 28138
Subject: NOTICE OF VIOLATION (NOV-2008-PC-0419)
FAILURE. TO SUBMIT ANNUAL REPORT
Permit No. WQ0016338
Alchem Incorporated Residuals Reuse Program
Rowan County
Dear Mr. Andrews:
Coleen H. Sullins, Director
Division of Water Quality
D r1pC����JC�
�J U N 1 3 2008
NC DENR MRO
DWQ -Aquifer Protection
One of the requirements of your non -discharge permit is the submittal of an annual report to the
Division of Water Quality by March 1st of each year. As of this date, our records indicate that the
2007 annual report has not been submitted for the subject facility.
Failure to act in accordance with the terms, conditions, or requirements of your permit may
result in the assessment of civil'penalties of up to $25,000.00 per violation per day, in
accordance with North Carolina General Statute § 143-215.6A.
Please respond to this notice of violation within 15 calendar days of its receipt, either by
submitting three copies of the annual report or records, indicating the report was submitted.
Submit to:
Ed Hardee
Division of Water Quality
Aquifer Protection Section
1636 Mail Service Center
Raleigh, NC 27699-1636
Nothing in this letter should be taken as relieving from you the responsibility for failing to
submit the annual report in a timely manner. A decision as to the appropriateness of an
enforcement action will be made following the receipt of your response.
Aquifer Protection Section 1636 Mail Service Center Raleigh, NC 27699-1636
Internet: http://h2o.enr.state.nc.us 2728 Capital Boulevard Raleigh, NC 27604
An Equal Opportunity/Affirmative Action Employer— 50% Recycled110% Post Consumer Paper
NorthCarolina
Ivatura!!y
Telephone: [phone]
Fax 1: [phone]
Fax 2: [phone]
Customer Service: [phone]

If you have any questions regarding this letter, please contact Ed Hardee of our Central Office
staff at [phone].
KHC: eh
APS Central Files
Land Application Unit
Sincerel ,
Kim H. Colson, P.E., Supervisor
Land Application Unit

ALCHEM response review notes-E.H.
August 2009
Issues sited in NOV/NOI June 2, 2009 and summary of ALCHEM response:
1. Lagoon #3 has not been cleaned out and the liner has not been inspected as per the
November 27, 2007 Settlement Agreement finish date of June 1, 2008.
i ._ _ /" Response review: ALCHEM stated that lagoon #3 is 50% cleaned out but has not
I submitted documentation to where any of the residuals leaving the facility for disposal
has gone. ALCHEM has known the importance of documenting where the spent bauxite
goes as stated in the response dated March 24, 2008 to the NOV issued Feb.21, 2008.
2. An annual report for 2008 for permit WQ0016338 was due on March 1, 2009, and has
not been received by the division as required by Part III, condition 7.
l Response review: The`2008 Annual Report that was submitted for WQ0016338 does
not include the data required by the permit. Specifically:
• No spent bauxite'residual analyses for metals as required in 111.3 .
j) • No TCLP analyses as required in 111.4.
• No records submitted for 111.6 a - dated freeboard measurements,
111.6d — cumulative volume of residuals in gallons or cu. yds. excluding freeboard
(lagoon),
• 111.6e — remaining volume in the surface disposal unit in gallons or cubic yards
/ excluding freeboard, and 111.6f - remaining disposal life in disposal unit in years
(lagoon).
3. The log that contains pH readings of the water in the lagoons was not available for
review at the time of the inspection. This information was not received by fax as
promised. (WQ0002702 permit condition 13).
Response review: An inspection report for Lagoons l & 2 submitted by DELTA for
ALCHEM reported Lagoon #land #2 being totally cleaned out and the liners tested on
June 10, 2008. Production records indicate lagoon #1 being used starting June 20,
2008. There were no pH readings submitted for all the batches sent to lagoon #1 for
June, July, August, September, or October (95 batches of spent bauxite), however,
lagoon. pH readings for lagoon #1 for the same period reflect pH readings of 3.40, 3.42,
3.41, 3.44, 3.45, 3.42, 3.45.
This indicates that the pH of the spent bauxite after production was not being adjusted
to 6.0 S.U. prior to the spent bauxite being sent to lagoon #1 after cleanout. The 2008
annual report submitted indicated daily batches being processed and only weekly ph
data being taken. Several months of production, May 28, 2008 through October 21,
2008, had no pH readings at all totaling 95 batches @ 20 tons each, produced.
Above response was due June 12, 2009. Response was received August 4, 2009.
Addendum to the NOV/NOI dated July 23, 2009 added:
4. Permit WQ 0002702, Condition 10 requires that freeboard in all lagoons shall not be
less than two feet at any time. Lagoon #3 does not have adequate freeboard in that
bauxite residuals have exceeded capacity and are piled several feet above the elevation
of the lagoon walls. This violation continues to exist because the lagoon has not been
cleaned out and the liner inspected as per the November 27, 2007 Settlement
Agreement completion date of June 1, 2008.

Response was due August 6, 2009. Response received August 4, 2009.
Response review: Freeboard response to Andrew Pitner is not factual. Response indicated
that clean -out activity for lagoon #3 as 50% completed and currently has 6 feet of freeboard
vertically and 40 feet horizontally and that this has not changed since June of 2008. The 2008
annual report indicates that Lagoon #3 has been used for production disposal of sand in
March, April, May, and June of 2008. File indicates records of 14 loads (22.5 tons each)
documented sent to IAC in January 2008. There is no documentation for disposal of sand for
the Feb. -June 2008 time period, as required by the Nov. 2007 settlement agreement.
File photo lagoon #3 April 2009
The records received for lagoon pH and temp readings (Peggy Finley) reported readings of
samples identified as R/R acid and R/R bauxite and in some cases, sand. Staff is unsure what
these readings are for. Records submitted date back to February 2007. The intervals of pH
readings vary from month to month. There are no records for All of January 2008 and only 1
week documented for February 2008.

1
NC®ENR
North Carolina Department of Environment and Natura
Beverly Eaves Perdue Coleen H. Sullins
Governor
Alchem Incorporated
2042 Buie Philadelpus Rd.
Red Springs, NC 28377
Attention: Randall Andrews
Dear Mr. Andrews:
Director, Division of Water Quality
Resources
Dee Freeman
Secretary
Jasivary 13, 2010
Subject: Request for Modification of Permit
For Reduction in sampling
Part III, Section 3, WQ0016338
Recycle System, Monofil
Rowan County
We are in receipt of your faxed letter dated January 5, 2010 for a modification request regarding
sampling of bauxite for metals under permit WQ0016338. The Mooresville Regional Office of DENR
does not process permit modifications here. We have forwarded your request to the permit writing group
in DENR-DWQ-APS, Raleigh.
Should you have any questions, feel free to contact me at 704/235-2180 or via email at:
Andrew. Pitner(c)-ncdenr.gov.
Sincerely,
Andrew H. Pitner, P.G.
Environmental Program Supervisor
Cc: Robert Wolcott, Alchem Incorporated, 8135 Red Road, Rockwell, North Carolina 28138
MRO-APS Files
DWQ-APS Land Application Unit, Raleigh
610 East Center Avenue, Suite 301, Mooresville, North Carolina 28115 One
Phone: [phone] FAX: [phone] Internet: www.ncwaterquality.org NorthCarolina
An Equal Opportunity 1 Affirmative Action Employer— 50% Recycled 110% Post Consumer Paper J&r191&

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FAX NO. :
ALCHEM, INC.
CmWr-te Of%
2042.Buie Pitiladelphus Road
Red Springs, NC 28377
Tel. 91ti-843-2121 — 800-522.2944
Fax [phone]
[e-mail]
January S, 2010
Mr. Andrew Pitner
Regional Environmental Supervisor
NCDENR Division of Water Quality
Mooresville Regional Office
610 East Center Ave.
Suite 301
Mooresville, NC 28115
Permit #: WQ0016338
Dear Mr. Pitner:
Rug. 07 1999 02:29AM P1
sales :,and ManufA-C ing
813 , Red Road
Rockwell, NC �*138
Tel. [phone] _ Roo-462-zy$b
Fax [phone]
wolcott_rPyahoo.cosn
Alchem would like to request that we be allowed to do only one metals scan per year.
This is provided for in our permit in Part III Section 3. We are buying the same raw
materials from the same suppliers. The Bauxite is mined from the same area and has the
same elements as always. The Sulfuric Acid is from the same of two suppliers. There is
no reason to think that there is ever going to be any difference. We would like to request
this change from 1-1-09 and in any future permits.
Best regards,
ALCHEM, INC.
Randall F. Andrews,
President
ams