CCB0051_TerrySmith_DukeResponsetoTireMaster_20210331

Lara Simmons Nichols
Vice President
Nuclear and EHS Legal Support
Office of General Counsel

550 S. Tryon Street
Charlotte, NC 28202
Mailing Address:
Mail Code DEC45A/ P.O. Box 1321
Charlotte, NC 28201
o: 704.382.9960
c: 704.609.0701
f: 980.373.8533

Via Electronic Mail
March 31, 2021
Mr. L. Charles Grimes Grimes Yeoman, PLLC 179 Gasoline Alley Main Floor, Suite 102-A P.O. Box 4232
Mooresville, NC 28117
Re: Letter Dated March 29, 2021, Concerning Failure of a Mooresville, North Carolina Structural Fill
Dear Mr. Grimes: I am writing in response to your letter concerning failure of a structural fill located in the vicinity of 190 West Plaza Drive, Mooresville, North Carolina. Based upon your description, it appears
that you are referring to the structural fill owned and operated by Tire Masters, which was constructed between September 1994 and August 1995. In the past, Duke Energy Corporation (“Duke Energy”) marketed coal combustion residuals (“CCR”) or coal ash for beneficial reuse, both as an ingredient in other projects and as a
replacement for construction materials. At the time, it was not unusual to beneficially reuse coal ash in place of soil in structural fills and generally these projects are under roads, parking lots and other commercial developments. Duke Energy’s sales of ash were conducted in accordance with then-current state regulations, which set out how ash could be used in ways that are safe for people and the environment. Property owners took ownership of the ash and decided how it
would be used. The North Carolina Department of Environmental Quality (“NCDEQ”) is responsible for oversight of structural fills. Based on Duke Energy’s records, Duke Energy supplied the CCR for the Tire Masters structural fill pursuant to 15A NCAC 13B.1700 (the “1700 Rules”), which at the time was owned by Terry
K. Smith. Tire Masters has responsibility to maintain the site under NCDEQ supervision. Duke Energy understands that NCDEQ has been working with the property owners since at least July 2019 to address concerns regarding the current condition of this fill. Contrary to the statements made in your letter (and a statement in the Notice of Violation (NOV-
2020-DV-0439) issued to Tire Masters on September 29, 2020), Duke Energy’s records and

information indicate that other than supplying the CCR in compliance with the 1700 Rules, Duke Energy was not involved in the design, engineering, installation or construction of the structural
fill. We understand from Terry Smith, the property owner at the time the structural fill was
installed, that the construction work was performed by the same contractor that widened Highway 150 for the North Carolina Department of Transportation. In addition, based on engineering design records, we know that Don Allen & Associates, an engineering firm in Mooresville, designed and engineered the fill site.

Given the company’s lack of involvement in the design, engineering and construction of the structural fill, Duke Energy declines the invitation to send representatives to observe the site on Friday, April 2. Although our connection to this site ended decades ago, Duke Energy shares a common interest with you and your clients in protecting people and the environment. Therefore,
if you are able to provide us with copies of the research referenced in your letter regarding Duke
Energy’s involvement, particularly as to design, engineering and construction, and communications and reports from the experts you indicated have investigated the fill, we are happy to meet with you and your clients at a later date.
Please feel free to contact me to arrange delivery of the materials referenced in your letter at 704-
382-9960, or [e-mail]. Sincerely,
Lara S. Nichols