NCG080797_DWR Enforcement Case OC-2022-001_20220406

DocuSign Envelope ID: OE365D3B-13BB-4169-97OB-3F52EE35D9D6
ROY COOPER
Governor
ELIZABETH S. BISER
Secretary
RICHARD E. ROGERS, JR.
Director
NORTH CAROLINA
Envrronmentat Quality
March 31, 2021
CERTIFIED MAIL 7021 2720 0000 1254 5462
RETURN RECEIPT REQUESTED
Southeast Bulk, LLC
Aubrey Edge - Operations Manager
7014 AC Skinner Parkway, Suite 290
Jacksonville, FL 32256
Subject: Assessment of Civil Penalties for Violations of N.C.G.S. § 143-215.83 and N.C.G.S.
§143-215.1(a)(1)
Southeast Bulk, LLC
Case NO. OC-2022-0001
Buncombe County, NC
Dear Responsible Party:
This letter transmits notice of a civil penalty assessed against Southeast Bulk, LLC in the
amount of $5,000 plus $624.26 in enforcement 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 Environmental Quality and the Director of the Division of Water
Resources. Any continuing violations) may be the subject of a new enforcement action,
including an additional penalty.
Within thirty (30) days of receipt of this notice, you must do one of the following three -options:
1. Submit payment of the penalty:
Payment should be made directly to the order of the Department of Environmental Quality
(do not include waiver form). Payment of the penalty will not foreclose further enforcement
action for any continuing or new violation(s). Please submit payment to the attention of:
Charles Weaver
NC Division of Water Resources
Water Quality Permitting Section - NPDES
1617 Mail Service Center
Raleigh, NC 27699-1617
�� North Carolina Department of Environmental Quality I Division of Water Resources
e:��D,EAsheville Regional Office 12090 U.S. Highway 70 1 Swannanoa, North Carolina 28778
Moan caaou'A
m Wu..im, 828.296.4500
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OR
2. Submit a written request for remission including a detailed justification for such
request:
Please be aware that a request for remission is limited to consideration of the five
factors listed below as they may relate to the reasonableness of the amount of the civil
penalty assessed. Requesting remission is not the proper procedure for contesting
whether the violation(s) occurred or the accuracy of 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 Resources 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 14313-
282.1(b) was wrongfully applied to the detriment of the petitioner;
(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 had 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 Water Resources will review
your evidence and inform you of his decision in the matter of your remission request.
The response will provide details regarding the case status, directions for payment, and
provision for further appeal of the penalty to the Environmental Management
Commission's Committee on Civil Penalty Remissions (Committee). Please be advised
that the Committee cannot consider information that was not part of the original
remission request considered by the Director. Therefore, it is very important that you
prepare a complete and thorough statement in support of your request for remission.
In order to request remission, you must complete and submit the enclosed "Request for
Remission of Civil Penalties, Waiver of Right to an Administrative Hearing, and
Stipulation of Facts" form within thirty (30) days of receipt of this notice. The Division
of Water Resources also requests that you complete and submit the enclosed
"Justification for Remission Request." Both forms should be submitted to the following
address:
Charles Weaver
NC Division of Water Resources

DocuSign Envelope ID: OE365D3B-13BB-4169-97OB-3F52EE35D9D6
Water Quality Permitting Section - NPDES
1617 Mail Service Center
Raleigh, NC 27699-1617
OR
3. File a petition for an administrative hearing with the Office of Administrative
Hearings:
If you wish to contest any statement in the attached assessment document, you must
file a petition for an administrative hearing. You may obtain the petition form from the
Office of Administrative Hearings. 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:
NC Office of Administrative Hearings
1711 New Hope Church Road
Raleigh NC, 27609
Telephone [phone]
Facsimile: 984-236-1871
AND
Mail or hand -deliver a copy of the petition to:
Mr. William F. Lane
NC Department of Environment Quality
Office of General Council
1601 Mail Service Center
Raleigh, North Carolina 27699-1601
And to:
Charles Weaver
NC Division of Water Resources
Water Quality Permitting Section - NPDES
1617 Mail Service Center
Raleigh, NC 27699-1617

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Please indicate the 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.
If you have any questions, please contact me at [e-mail] or (828)
296-4500.
Sincerely,
DocuSigned by:
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7E617A38285848C...
G. Landon Davidson, P.G. Regional Supervisor
Asheville Regional Office
Water Quality Regional Operations
Division of Water Resources
cc: ARO Files - G:\WR\WQ\Buncombe\Complaints\202200071 Mountain Energy petroleum release
ec: William F. Lane - Office of General Council
Charles Weaver - NCDWR

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JUSTIFICATION FOR REMISSION REQUEST
DWR Case Number: OC-2022-0001 County: Buncombe
Assessed Party: Southeast Bulk, LLC
Amount Assessed: $S.624.26
Please use this form when requesting remission of this civil penalty. You must also complete the
"Request For Remission, Waiver of Right to an Administrative Hearing, and 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 evaluating your request for
remission. Please be aware that a request for remission is limited to consideration of the five
factors listed below as they may relate to the reasonableness of the amount of the civil penalty
assessed. Requesting remission is not the proper procedure for contesting whether the violation(s)
occurred or the accuracy of any of the factual statements contained in the civil penalty assessment
document. Pursuant to N.C.G.S. § 14313-282.1(c), remission of a civil penalty maybe granted only
when one or more of the following five factors apply. Please check each factor that you believe
applies to your case and provide a detailed explanation, including copies of supporting documents,
as to why the factor applies (attach additional pages as needed).
(a) one or more of the civil penalty assessment factors in N.C.G.S. 143B-282.1(b)
were wrongfully applied to the detriment of the petitioner (the assessment factors
are listed in the civil penalty assessment document);
(b) the violator promptly abated continuing environmental damage resulting from
the violation (i.e., explain the steps that you took to correct the violation 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:

DocuSign Envelope ID: OE365D3B-13BB-4169-97OB-3F52EE35D9D6
STATE OF NORTH CAROLINA
COUNTY OF BUNCOMBE
IN THE MATTER OF ASSESSMENT
OF CIVIL PENALTIES AGAINST
Southeast Bulk, LLC
DEPARTMENT OF ENVIRONMENTAL QUALITY
WAIVER OF RIGHT TO AN
ADMINSTRATIVE HEARING AND
STIPULATION OF FACTS
CASE NO. OC-2022-0001
Having been assessed civil penalties totaling $5,624.26 for violation(s) as set forth in the
assessment document of the Division of Water Resources dated March 31, 2022. the undersigned,
desiring to seek remission of the civil penalty, 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 Resources
within thirty (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

DocuSign Envelope ID: OE365D3B-13BB-4169-970B-3F52EE35D9D6
STATE OF NORTH CAROLINA
COUNTY OF BUNCOMBE
IN THE MATTER OF
SOUTHEAST BULK, LLC
FOR VIOLATION OF
NORTH CAROLINA GENERAL STATUTE
§ 143-215.83 and § 143-215.1
NORTH CAROLINA
DEPARTMENT OF
ENVIRONMNETAL QUALITY
File No. OC-2022-0001
FINDINGS AND DECISION
AND ASSESSMENT OF
CIVIL PENALTIES
Acting pursuant to delegation provided by the Secretary of the Department of
Environmental Quality, I, G. Landon Davidson, Regional Supervisor for the Asheville Region Water
Quality Regional Operations Section of the Division of Water Resources (DWR), make the
following:
f91►1911►161us] aye«I
A. Southeast Bulk, LLC is a limited liability company legally conducting business in
and under laws of the State of North Carolina.
B. Southeast Bulk, LLC owns and operates Mountain Energy Home Heat, LLC
(Mountain Energy) located at 288 Lyman Street, Asheville, in Buncombe County.
C. On December 29, 2021, DWR Staff from the Asheville Regional Office responded
to a release of petroleum product(s) to the French Broad River from a
stormwater drain at the Mountain Energy bulk fuel depot, 288 Lyman Street, in
Asheville, NC. According to an Asheville Fire Department incident report,
petroleum sheen was initially visible on the French Broad River at the Craven
Street bridge, which is approximately %-mile downstream of the Mountain
Energy stormwater drain. DWR staff responded approximately an hour after the
reported release and observed petroleum sheen along the east bank of the
French Broad River.
D. On December 29, 2021, DWR staff observed petroleum sheen in a stormwater
drop inlet located in front of a warehouse used by Mountain Energy to store
lubricant and oil products. The warehouse is located approximately 20 feet
north of the of the stormwater drop inlet. A rivulet of what appeared to be
petroleum product was observed discharging to the stormwater drop inlet from
a smaller drain pipe that entered the inlet from the west. An environmental

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consultant working on behalf of Mountain Energy inspected the smaller drain
pipe and indicated the pipe turned to the north and towards the warehouse.
On December 29, 2021 DWR Staff inspected the inside of the warehouse and
observed numerous 50-gallon drums of petroleum product, several of which
were laying on their sides. A pool of free product was observed underneath
several of the drums with labels identifying the product as a synthetic heavy-
duty transmission fluid (Shell Spirax GSX SAE 50). Numerous smaller containers
of lubricants/oils were also littered throughout the warehouse. Petroleum stains
were pervasive along the floor of the warehouse. One open floor drain was
observed on the northwest corner of the warehouse. The roof of the warehouse
is in disrepair at multiple locations and is allowing precipitation to enter the
warehouse.
DWR staff conducted six site inspections between December 29, 2021 and
January 24, 2022. During this inspection period, petroleum sheen was observed
intermittently on the French Broad River directly below the stormwater outfall. A
hard boom and an oil -absorbent boom were deployed to help control the
discharge of product to the French Broad River.
G. On January 24, 2022, DWR staff from the Asheville Regional Office inspected the
inside of the Mountain Energy warehouse after a cleanup was completed. Staff
observed a second open floor drain adjacent to an area where metal drums and
a pool of free product were observed on December 29, 2021. Residual
petroleum stains on the warehouse floor extended from the spill area to the
second floor drain.
H. On January 28, 2022, Mountain Energy notified the Asheville Regional Office
that a dye tracer test confirmed the second floor drain does discharge to the
stormwater drop inlet, which was the source of the petroleum release on
December 29, 2021. The floor drain was permanently plugged with cement by
Mountain Energy on February 4, 2022.
The impacted section of the French Broad River [Stream index 6-(54.75)] is
classified as a Class B waters of the State within the French Broad River Basin.
Class B waters are protected for all Class C uses in addition to primary contact
recreation. Primary contact recreation means swimming, diving, water skiing,
and similar uses involving human body contact with water where such activities
take place in an organized manner or on a frequent basis.
The cost to the State of the enforcement procedures in this matter totaled
$624.26.

DocuSign Envelope ID: OE365D3B-13BB-4169-97OB-3F52EE35D9D6
Based upon the above Findings of Fact, I make the following:
CONCLUSIONS OF LAW
A. Southeast Bulk, LLC is a "person" within the meaning of G.S. 143-215.6A
pursuant to G.S. 143-212 (6).
B. The French Broad River constitutes waters of the State within the meaning of
G.S. 143-215.1 pursuant to G.S. 143-212 (6).
C. The product discharged to the land and waters of the State of North Carolina is
an "oil" as defined by G.S. 143-215.77 (8) and a "waste" by G.S. 143-213 (18) (c).
D. The above -cited discharge constituted making an outlet to waters if the State for
purposes of G.S. 143-215.1 (a) (1), for which a permit is required by G.S. 143-
215.1.
Southeast Bulk, LLC may be assessed civil penalties in this matter pursuant to
G.S. 143-215.6A (a) (1), which provides that a civil penalty of not more than
twenty-five thousand dollars ($25,000) per violation may be assessed against a
person who violated any classification, standard, limitation, or management
practice established pursuant to G.S. 143-214.1, G.S. 143-214.2 04 G.S. 143-215.
Southeast Bulk, LLC may be assessed civil penalties in this matter pursuant to
G.S. 143-215.6A (a) (2), which provides a civil penalty of not more than twenty-
five thousand dollars ($25,000) per violation may be assessed against a person
who is required but fails to apply for or to secure a permit required by G.S. 143-
215.1.
G. The State's enforcement costs in this matter may be assessed against Southeast
Bulk, LLC pursuant to G.S. 143-215.3 (a) (9) and G.S. 14313-282.1(b)(8).
H. The Regional Supervisor of the Asheville Regional Water Quality Regional
Operations Section, pursuant to delegation provided by the Secretary of the
Department of Environmental Quality and the Director of the Division of Water
Resources, has the authority to assess civil penalties in this matter.
Based upon the above Findings of Fact and Conclusions of Law, I make the following:
III. DECISION
Accordingly, Southeast Bulk, LLC is hereby assessed a civil penalty of:

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$ 0 For violations of G.S. 143-215.1(a) by discharging
wastewater to waters of the State without a permit.
$5,000 For violation of G.S. 143-215.83 for discharging, or causing
to be discharged, oil or other hazardous substance into or
upon the waters or lands within the State, regardless of
the fault of the person having control over the oil or other
hazardous substance, or, regardless of whether the
discharge was the result of intentional or negligent
conduct, accident or other cause.
$_5,000 TOTAL CIVIL PENALTY
$ _624.26 Enforcement costs
$ 5,624.26 TOTAL AMOUNT DUE
As required by G.S. 143-215.6A(c), in determining the amount of the penalty I have
considered the factors listed in G.S.143B-282.1(b), which are:
(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;
(2) The duration and gravity of the violation;
(3) The effect on ground or surface water quantity or quality or on air
quality;
(4) The cost of rectifying the damage;
(5) The amount of money saved by noncompliance;
(6) Whether the violation was committed willfully or intentionally;
(7) The prior record of the violator in complying or failing to comply with
programs over which the Environmental Management Commission has
regulatory authority;
(8) The cost to the State of the enforcement procedures.
DocuSigned by:
3/31/2022
7E617A38285848C...
(Date) G. Landon Davidson
Regional Supervisor
Water Quality Regional Operations Section
Division of Water Resources

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NORTH CAROLINA DIVISION OF WATER RESOURCES
Violator: Southeast Bulk, LLC
County: Buncombe
Case Number: OC-2022-0001
Permit Number: Not Applicable
ASSESSMENT FACTORS
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;
On December 29, 2021, an unknown volume of petroleum product(s) discharged to
the French Broad River from the Mountain Energy bulk fuel depot. The violation
resulted in immediate observable damage to the French Broad River, which is a Class B
stream and popular outdoor recreation destination. On the day of the release,
petroleum sheen may have temporality impacted several public access points
immediately downstream including Jean Webb Park (0.18 miles downstream), Craven
Street boat ramp (0.5 miles downstream), and the Woodfin Riverside Park (4.88 miles
downstream). Mountain Energy took action to minimize the impacts by deploying oil
absorbent booms on the French Broad River and temporarily blocking the conduit
responsible for the release.
The duration and gravity of the violation;
According to an Asheville Fire Department incident report, petroleum sheen covered
the entirety of the French Broad River at the Craven Street bridge for a short period on
December 29, 2021. DWR staff responded approximately an hour after the release
and observed petroleum sheen along the east bank of the French Broad River.
Petroleum sheen was intermittently observed on the French Broad River between
December 29, 2021 and January 24, 2022. The deployment of a hard boom and oil -
absorbent booms minimized the impacts to the French Broad River. The petroleum
product containers (source) were removed from the warehouse in late January 2022.
The floor drain responsible for the release was eliminated on February 4, 2022.
3. The effect on ground or surface water quantity or quality or on air quality;
Because the release was confined to the stormwater piping, the impacts to
groundwater and air quality are likely negligible. The largest impact to surface water
was on the day of the release with significant petroleum sheen on the French Broad
River extending approximately % mile downstream of the Mountain Energy facility.
The petroleum sheen may have temporality impacted several public access points
including Jean Webb Park (0.18 miles downstream), Craven Street boat ramp (0.5
miles downstream), and the Woodfin Riverside Park (4.88 miles downstream).

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Because the free product was in the solid phase, long-term impacts to fish and benthic
macroinvertebrates are not expected to occur.
The cost of rectifying the damage;
According to Environmental Director Kevin J. Kusmirek, Mountain Energy spent
$15,163 between December 29, 2021 and March 11, 2022. These funds were used for
emergency response, site investigation, and corrective action.
The amount of money saved by noncompliance;
The amount of money saved by non-compliance is unknown but could include, but not
limited to, the following:
• elimination of the warehouse floor drains;
• regular inspection of the warehouse;
• repairing the waterhouse roof;
• updating the Stormwater Pollution and Prevention Plan;
• development of secondary containment plan;
• annual evaluation of stormwater outfalls; and
• training of staff in spill prevention measures.
Whether the violation was committed willfully or intentionally;
There was no evidence to indicate the release was intentional. However, the release
was the result of neglect in terms of failing to properly secure the petroleum product
containers, failing to inspect the warehouse, failing to include the floor drains in their
spill prevention pollution plans, and failing to repair the warehouse roof. A NPDES
stormwater permit compliance inspection by the Division of Water Quality on March
19, 2008 recommended the floor drain(s) should be protected from spills or closed
permanently.
The prior record of the violator in complying or failing to comply with programs over
which the Environmental Management Commission has regulatory authority; and
On April 18, 2007, the Division of Water Quality issued a notice of violation (NOV-
2007-DV-0031) to Mountain Energy (288 Lyman Street) for discharging petroleum
products to the French Broad River from an unpermitted oil/water separator.
On February 4, 2018, there was a large release of home heating oil to the French
Broad River from a 20,000-gallon above ground storage tank at the Mountain Energy
Home Heat bulk fuel depot (288 Lyman Street). The home heating oil initially
discharged to a secondary containment area but a drain gate valve was found to be
inoperable and unable to be closed. The open gate valve allowed pooled fuel in the

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secondary containment area to discharge directly to the French Broad river. The
impact to the river prompted the Buncombe County Health Department to issue a
recreational -use advisory for more than 20-miles downstream of the release point.
The Division of Water Resources issued a notice of violation (NOV-2018-DV-0051) and
pursued an enforcement (DV-2018-0036) fine totaling $45,517.48.
On June 19, 2018, the Division of Energy, Mining, and Land Resource issued a notice of
violation (NOV-2018-PC-0194) to Mountain Energy (288 Lyman Street) for stormwater
permit violations including not having a current stormwater pollution prevent plan,
failure to conduct semi-annual inspections, failure to complete semi-annual
monitoring, and failure to repair the secondary containment gate valve.
On February 14, 2022, the Division of Energy, Mining, and Land Resource issued a
notice of violation (NOV-2022-PC-0038) to Mountain Energy (288 Lyman Street) for
stormwater permit violations including not having a current stormwater pollution
prevent plan, failure to conduct semi-annual inspections, failure to complete semi-
annual monitoring, and failure to report a release.
The cost to the State of the enforcement procedures.
The cost for DWR staff time is $624.26
3/31/2022
r - -�_)
DocuSigned by:
7E617A38285848C_
Date G. Landon Davidson, P.G.
Asheville Regional Office Supervisor
Water Quality Regional Operations.
Division of Water Resources