WS-29519_48706_G_O_20221122_Eligibility-20K

November 22,2022

Mr. Don McIver Quality Oil Company, LLC
1540 Silas Creek Parkway Winston-Salem, NC 27127 RE: Commercial State Trust Fund Eligibility Application Roy’s Country Store – Facility ID # 00-0-0000031424 1027 NC Highway 801 North Advance, Davie County, North Carolina Incident # 48706 UST # - WS-29519 Dear Mr. McIver: This letter is to acknowledge receipt of and respond to your request for eligibility determination for access
to the North Carolina Leaking Petroleum Underground Storage Tank Cleanup Funds for the above-referenced property. Review of your application by the Underground Storage Tank (UST) Section of the Division of Waste Management is now complete.
Information supplied to the State Trust Fund indicates that the following USTs were associated with the subject site:
• Three 6,000-gallon gasoline USTs (installed 6/2/1989, last used 2015, removed 10/5/2022), and
• One 2,000-gallon diesel UST (installed 6/2/1989, last used 2015, removed 10/5/2022). One 550-gallon aboveground storage tank (AST) used to contain kerosene for resale was also located on
the property. The AST was installed in 2001, last used in 2015, and removed October 1, 2022. The application indicates there was no release associated with the AST. From information obtained by the Department the AST appeared to be a double walled self-contained unit with its own dispenser. The AST
will not be considered in this eligibility determination. A release was discovered during UST removal activities on October 5, 2022. The release was reported to
the Winston-Salem Regional Office (WSRO) via email dated October 5, 2022 and followed up with a telephone call to the WSRO. The tanks had been upgraded to meet the required federal corrosion protection, leak detection, and spill/overfill prevention standards at the time of the release discovery. A review of the tank operating fees database indicates that all fees were paid prior to the release discovery.

Based on the aforementioned information, the release is conditionally eligible for reimbursement from the
Commercial Trust Fund for reasonable and necessary costs incurred for any environmental assessment and cleanup of this site. To remain eligible, you must proceed with corrective action, if required, by and in accordance with North Carolina Administrative Code (NCAC) 15A 2L .0115 or 15A NCAC 2L .0106, whichever is applicable. Failure to mitigate the spread of contamination may cause you to be determined ineligible to receive reimbursement from the Commercial Trust Fund. In accordance with North Carolina General Statute (N.C.G.S.) 143-215.94B(b)(3), any discharge or release reported on or after January 1, 1994, is subject to a $20,000 deductible if prior to the discharge or release, the commercial UST from which the discharge or release occurred met the performance standards applicable to tanks installed after December 22, 1988 or met the requirements that USTs must meet by December 22, 1998 (i.e., the UST systems were required to be protected from corrosion and have spill and
overfill protection equipment installed prior to release discovery). Based on the information available at this time, it appears that the N.C.G.S. 143-215.94B(b)(3) provision
for a $20,000 deductible was met. In accordance with N.C.G.S. 143-215.94E, reasonable and necessary costs incurred in the environmental cleanup may be eligible for reimbursement. You may be reimbursed for cleanup costs exceeding $20,000 as follows: 100 percent reimbursed for reasonable and necessary costs
between $20,000 and $1 million, and 80 percent reimbursed for reasonable and necessary costs between $1 million and $1.5 million. If future information becomes available showing the former kerosene AST did experience a release and it is commingled with the UST release, then the eligibility determination will be reconsidered. The status of your underground storage tank release assessment or remediation efforts may be affected by the statutory requirements of N.C.G.S. 143-215.94E(e5), as revised by Session Law 2005-365. Subsections (e5)(6) through (e5)(9) of this statute prohibit the Department from pre-approving any work eligible for reimbursement from the Commercial or Noncommercial Underground Storage Tank Trust Fund, unless the Department determines that sufficient funds will be available to pay the claim within 90 days of final claim
approval. To meet the requirements of this law, the Department is requiring the following: 1) Per 15A NCAC 2P .0402(b)(9), State Trust Fund preapproval is required for all work for which reimbursement will be requested, with the exception of emergency response actions (applied as per
15A NCAC 2L .0404, Initial Abatement Actions, including mitigation of fire, explosion, and vapor hazards) and assessment activities (applied as per 15A NCAC 2L .0405, Limited Site Assessments). 2) Following the submittal of a Limited Site Assessment Report and associated risk classification (15A NCAC 2L .0406), the Department will use Notice of Regulatory Requirements to direct responsible parties of a release to assess and/or remediate contaminated soil and groundwater according to 15A NCAC 2L .0407 based on the site’s risk prioritization classification under N.C.G.S. 143-215.94E(e4). 3) The above referenced requirements, 1 and 2, are for sites with NO previous release(s) or incident(s).
Any site with a prior release(s) or incident(s) must obtain pre-approval for all work to be conducted. Per N.C.G.S. 143-215.94E(j) and (k), please note that you have one year from task completion or the date
of this eligibility determination, whichever comes later, to submit a reimbursement claim. The claim can only include costs beginning October 14, 2021 (one calendar year prior to eligibility application date of receipt) or later. If a claim is not submitted within one year of the eligibility determination date or the

completion of the task, costs may be denied.
The Commercial Leaking Petroleum Underground Storage Tank Cleanup Funds will reimburse costs based on fund availability. Please note that this does not relieve you of any regulatory responsibility. Therefore, you must continue with all required assessment and/or corrective action, unless the site has received a Notice of No Further Action. To obtain the latest information on implementation guidance or updated forms, please visit http://portal.ncdenr.org/web/wm/ust/guidance. Please be aware that this letter does not constitute a final agency decision. Any additional information or comments to rebut this letter may be submitted to my attention at NCDEQ, Division of Waste Management, UST Section, 1646 Mail Service Center, Raleigh, NC 27699-1646.
Should you require any further assistance, please do not hesitate to call me at [phone] or Mark Petermann at [phone].
Sincerely,
Wayne Randolph, CPM Trust Fund Branch Manager UST Section-Division of Waste Management NC Department of Environmental Quality MAP: 48706_Roys Country Store, 1027 NC Hwy 801 North, Advance, Davie County, NC cc: Don McIver, Quality Oil Company, LLC, [e-mail] Progress Environmental Group, Inc., [e-mail] NC DEQ – Winston-Salem Regional Office, [e-mail] NC DEQ - UST Section - Hope Thompson, [e-mail] STF