21010_Reman Properties_Phase I ESA Update_20130509

801 INDUSTRIAL STREET; SUITE 1  WILMINGTON, DE 19801  [phone]  FAX [phone]

May 9, 2013

Brendan Murphy, Esq.
Duff and Phelps
55 East 52nd Street; Floor 31 New York, NY 10055

RE: Phase I Environmental Site Assessment Update Pittsboro Processing Plant
Pittsboro, North Carolina
Dear Mr. Murphy:
BrightFields, Inc. herein presents our report for the above referenced Phase I Environmental Site Assessment (ESA) Update. Duff & Phelps requested that BrightFields conduct this ESA
Update for asset management and/or reallocation purposes. This ESA Update was performed in
accordance with standard practices and policies following the ASTM Standard Number E1527-05.
The purpose of the ESA Update was to: 1) identify existing and potential releases of
hazardous substances on or around the site; 2) inquire into the previous ownership and uses of the
property; and 3) identify other recognized environmental conditions (RECs) on the site. According to the Standard, a REC is defined as:
“The presence or likely presence of any hazardous substances or petroleum
products on a property under conditions that indicate an existing release, a past release, or a material threat of a release of any hazardous substances or petroleum
products into structures on the property or into the ground, ground water, or
surface water of the property. The term includes hazardous substances or petroleum products even under conditions in compliance with laws. The term is
not intended to include de minimis conditions that generally do not present a
material risk of harm to public health or the environment and that generally would not be the subject of an enforcement action if brought to the attention of
appropriate governmental agencies.”
In addition, in order to assess the business environmental risk associated with the subject property, additional non-scope considerations (not required in the ASTM Standard) may be evaluated. These may include: asbestos-containing materials, radon, lead-based paint, lead in the
drinking water, wetlands and a cursory view of regulatory compliance. Based on the client’s choice as per our contract dated February 8, 2013, a Basic Phase I ESA Update (not including non-scope considerations) was completed.
[16.6] [Phase I ESA Update - Pittsboro Processing Plant.pdf] [Page 1 of 214]

Phase I ESA Update Page 2 Pittsboro Processing Plant May 9, 2013 2972.01.11
FINDINGS/OPINIONS
The following items of interest were identified during the Phase I ESA:
1) Drums and containers/vessels of potentially hazardous materials and/or wastes were
noted within the processing plant and maintenance buildings during the on-site
investigation. Most of the materials were wastewater treatment or cleaning
chemicals. Some drums that appeared to be waste refrigeration or hydraulic oil
were noted in the plant building. The drums appeared to be in good condition and
no leaks or spills were observed. BrightFields observed piping and lines or
reservoirs in systems that previously used hydraulic oil, refrigeration oil and/or
other materials. Mr. Hendrick indicated that he believed the refrigeration oil had
been drained from various tanks but is still in the compressors and that hydraulic
oil, stored in a 250-gallon reservoir inside the lean-to shed between the plant and
employee parking lot and in hydraulic lines is still present. BrightFields did not
observe indication that a release had occurred from these systems.
Universal wastes, such as florescent light tubes, ballasts that contain PCBs,
equipment containing refrigerants such as air conditioners, chillers, and water
fountains, mercury switches/thermostats, and other materials were not surveyed as
part of this Phase I ESA. These items can require special disposal but no action is
necessary if they are to remain in use.
2) There is a 275-gallon used refrigeration oil AST located in the engine room of the processing plant. The tank appears to be maintained in an environmentally safe
manner. Therefore, it does not appear to be an environmental concern to the site at
this time.
3) Indication of two underground storage tanks (USTs) was observed on the subject
property. a registered 10,000-gallon diesel tank and a 500-550-gallon gasoline tank,
both of which are located near the former truck shop building. According to Mr.
Jim Hendrick, the tanks have been pumped empty, however no documentation was
available.
BrightFields interviewed Ms. Pam Harrelson, Inspector for the North Carolina
Department of Environment and Natural Resources to ascertain the status of the
permitted underground storage tank at the facility. Ms. Harrelson indicated that she
had last inspected the subject property in early 2011 and had since put the site UST
permit into “temporary closure” status. She indicated that the facility had fallen out
of compliance for failing to submit corrosion protection monitoring results, leak
detection results and annual tank tightness testing results. NCDENR
documentation, provided by Ms. Harrelson, is provided in Appendix D.
When active, the tanks reportedly had spill/overfill protection, cathodic corrosion
protection and in-tank computerized leak detection systems. The tanks, installed in
1961 according to checklists provided by Ms. Harrelson which are included in
Appendix D, historically appeared to have been properly maintained and serviced.
[16.6] [Phase I ESA Update - Pittsboro Processing Plant.pdf] [Page 2 of 214]

Phase I ESA Update Page 3 Pittsboro Processing Plant May 9, 2013 2972.01.11
Due to the maintenance status of the tanks and lack of reviewable maintenance
records on the tanks, including documentation that the tanks are empty, it is the
opinion of BrightFields, Inc. that the USTs represent a REC for the subject property
and that additional investigation is warranted. If proper maintenance activity
records are made available, the systems may be brought back into compliance, if the
systems are still intact.
BrightFields’ 2007 Phase I ESA stated the following about two UST systems that
had been abandoned in-place:
“An October, 2001 letter from TerraTech to Townsends is included in
Appendix F. The letter refers to an unregulated 6,000-gallon heating oil tank
that was abandoned in place between the plant and the maintenance building.
The tank was abandoned in place by TerraTech of Raleigh, NC. Soil samples
were collected around the tank in June 2001. The sample results indicated
minor concentrations of petroleum near the tank and were submitted to the
State of North Carolina for review. Because the site is not on the state LUST
list, it appears that no further action will be required for the tank
abandonment. Based on our review of this information the abandoned tank
does not appear to represent an environmental concern at this time.
“According to Mr. Judge, a Chatham County Fuel Storage Tank Installation,
Removal and Abandonment Record refers to a 10,000-gallon gasoline tank
abandoned in place near the truck scale building on the subject site.
“Mr. Judge does not have documentation on the 500-gallon gasoline tank that
appears on the Site Plan…The Site Plan indicates the tank has been
abandoned. Documentation was not available for review. Mr. Roger
Mashburn (formerly with Townsends, Inc.) stated in an email dated March 19,
2007 to BrightFields that the tank is 550-gallons and ‘is still in the ground
empty’.”
4) Numerous above ground storage tanks (ASTs) were located on the grounds at the time of the inspection, including: a 1 million-gallon reuse water tank, a 300,000-
gallon potable water tank, a self-contained 275-gallon used refrigeration oil tank, a
52,000-pound liquid CO2 tank, a 18,000-pound anhydrous ammonia tank, and an out-of-service 275-gallon used motor oil tank. The tanks have reportedly been
pumped empty since the plant closed in September 2011. These tanks appear to be
maintained in an environmentally safe manner. No staining was noted in proximity to the tanks.
5) Numerous 55-gallon and smaller drums of cleaning and wastewater treatment
chemicals were located on a concrete pad inside a fenced storage area near the maintenance building. The materials appear to be properly labeled and stored and the drums were observed to be in intact condition.
[16.6] [Phase I ESA Update - Pittsboro Processing Plant.pdf] [Page 3 of 214]

Phase I ESA Update Page 4 Pittsboro Processing Plant May 9, 2013 2972.01.11
6) Several production wells are reportedly located on the subject property. The wells
were used when the plant was in operation and they supply water to the plant. In
addition, the site receives potable water from the public water utility.
CONCLUSIONS
We have performed a Phase I ESA Update in conformance with the scope and limitations of ASTM Practice E 1527-05 of the (site name) property. Any exceptions to, or deletions from this
practice are described in Sections 1.0 and 3.0 of this report. This assessment has revealed no evidence of recognized environmental conditions in connection with the property except for the following:
1. Due to the maintenance history of the underground storage tank located at the
subject property, it is the opinion of BrightFields, Inc. that the UST represents a REC for the subject property and that additional investigation is warranted.
DISCLAIMER
While every attempt is made to provide as thorough a review as possible it is not practical
to provide a 100% survey of the surface and subsurface areas of any site. As such, the findings and recommendations are, by necessity, based on the information and specific locations reviewed, and the conditions of the parcel and facility at the time of the on-site survey. BrightFields, Inc. does
not warrant its findings or conclusions beyond this information and survey.
The following portions of the subject property were not made available for inspection to
BrightFields, Inc. at the time of the site visit:
1) BrightFields did not have access to the interior of the former truck shop/maintenance
building (located on the north side of Moncure Pittsboro Rd.). Jim Hendrick stated that the
shop was “empty” and contained no parts washers, hydraulic lifts or drums.
BrightFields was able to trace the history of the property back to 1955, when aerials show
the property was already commercially developed. BrightFields, Inc. was not able to determine the prior usage of the property dating back to the property’s obvious first developed use of the site
(including agricultural uses), or back to 1940 using readily available, reasonably ascertainable and
useful information (see Section 2.1). However, it is the opinion of BrightFields that determining the prior usage of the subject property dating back to the first developed use would not be likely to
provide additional useful information or identify environmental issues that were not already
identified by this survey.
Pursuant to our contract, this report has been prepared for the exclusive use of Duff &
Phelps, their client, their client’s lending institutions and/or legal representatives. The information
contained herein may not be reproduced, used or relied upon by any other parties without the prior written consent of BrightFields, Inc. BrightFields acknowledges that this report may be used in
bankruptcy proceedings.
[16.6] [Phase I ESA Update - Pittsboro Processing Plant.pdf] [Page 4 of 214]
[
1
6
.
6
]

[
P
h
a
s
e

I

E
S
A

U
p
d
a
t
e

-

P
i
t
t
s
b
o
r
o

P
r
o
c
e
s
s
i
n
g

P
l
a
n
t
.
p
d
f
]

[
P
a
g
e

5

o
f

2
1
4
]
[
1
6
.
6
]

[
P
h
a
s
e

I

E
S
A

U
p
d
a
t
e

-

P
i
t
t
s
b
o
r
o

P
r
o
c
e
s
s
i
n
g

P
l
a
n
t
.
p
d
f
]

[
P
a
g
e

6

o
f

2
1
4
]
[
1
6
.
6
]

[
P
h
a
s
e

I

E
S
A

U
p
d
a
t
e

-

P
i
t
t
s
b
o
r
o

P
r
o
c
e
s
s
i
n
g

P
l
a
n
t
.
p
d
f
]

[
P
a
g
e

7

o
f

2
1
4
]
[
1
6
.
6
]

[
P
h
a
s
e

I

E
S
A

U
p
d
a
t
e

-

P
i
t
t
s
b
o
r
o

P
r
o
c
e
s
s
i
n
g

P
l
a
n
t
.
p
d
f
]

[
P
a
g
e

8

o
f

2
1
4
]
[
1
6
.
6
]

[
P
h
a
s
e

I

E
S
A

U
p
d
a
t
e

-

P
i
t
t
s
b
o
r
o

P
r
o
c
e
s
s
i
n
g

P
l
a
n
t
.
p
d
f
]

[
P
a
g
e

9

o
f

2
1
4
]
[
1
6
.
6
]

[
P
h
a
s
e

I

E
S
A

U
p
d
a
t
e

-

P
i
t
t
s
b
o
r
o

P
r
o
c
e
s
s
i
n
g

P
l
a
n
t
.
p
d
f
]

[
P
a
g
e

1
0

o
f

2
1
4
]
[
1
6
.
6
]

[
P
h
a
s
e

I

E
S
A

U
p
d
a
t
e

-

P
i
t
t
s
b
o
r
o

P
r
o
c
e
s
s
i
n
g

P
l
a
n
t
.
p
d
f
]

[
P
a
g
e

1
1

o
f

2
1
4
]
[
1
6
.
6
]

[
P
h
a
s
e

I

E
S
A

U
p
d
a
t
e

-

P
i
t
t
s
b
o
r
o

P
r
o
c
e
s
s
i
n
g

P
l
a
n
t
.
p
d
f
]

[
P
a
g
e

1
2

o
f

2
1
4
]
[
1
6
.
6
]

[
P
h
a
s
e

I

E
S
A

U
p
d
a
t
e

-

P
i
t
t
s
b
o
r
o

P
r
o
c
e
s
s
i
n
g

P
l
a
n
t
.
p
d
f
]

[
P
a
g
e

1
3

o
f

2
1
4
]

Phase I ESA Update Page 6 Pittsboro Processing Plant May 9, 2013 File: 2972.01.11
2.5.1 Building Inspection
The building inspection concentrated on the identification of environmental concerns
within the buildings such as storage of hazardous materials. There are seven main buildings on the site: the processing plant, a maintenance building, the “command post”/truck scale
building, a wastewater treatment/“reuse” building, an offal building, a live shed and the old
live sheds/truck shop/maintenance building (located on the north side of Moncure Pittsboro Rd.). There are also several smaller sheds and outbuildings on the site. The following
paragraphs summarize the findings of the investigation of the building interiors.
Materials Storage/Disposal
Drums and containers/vessels of potentially hazardous materials and/or wastes were
noted within the processing plant and maintenance buildings during the on-site
investigation. Most of the materials were wastewater treatment or cleaning
chemicals. Some drums that appeared to be waste refrigeration or hydraulic oil were
noted in the plant building. The drums appeared to be in good condition and no leaks
or spills were observed. BrightFields observed piping and lines or reservoirs in
systems that previously used hydraulic oil, refrigeration oil and/or other materials.
Mr. Hendrick indicated that he believed the refrigeration oil had been drained from
various tanks but is still in the compressors and that hydraulic oil, stored in a 250-
gallon reservoir inside the lean-to shed between the plant and employee parking lot
and in hydraulic lines is still present. BrightFields did not observe indication that a
release had occurred from these systems.
Universal wastes, such as florescent light tubes, ballasts that contain PCBs,
equipment containing refrigerants such as air conditioners, chillers, and water
fountains, mercury switches/thermostats, and other materials were not surveyed as
part of this Phase I ESA. These items can require special disposal but no action is
necessary if they are to remain in use.
Floor Drains
Floor drains were noted throughout the processing plant. The floor drains lead to the
on-site wastewater treatment plant. After being treated at the plant, the water was
pumped to a large water treatment lagoon on the Pittsboro Farm property owned by
Omtron USA, LLC. Some water from the lagoon was applied to spray irrigation crop
fields and some water from the lagoon was fed back to the “reuse” portion of the
water treatment plant. After undergoing a series of processing, the treated water was
pumped from the reuse plant to the on-site 1-million gallon water storage tank to be
reused in the plant for cleaning.
No hazardous materials were observed to be stored or spilled in the area of the floor
drains. Based on this information it appears that the floor drains do not represent an
environmental concern at this time.

[16.6] [Phase I ESA Update - Pittsboro Processing Plant.pdf] [Page 14 of 214]

Phase I ESA Update Page 7 Pittsboro Processing Plant May 9, 2013 File: 2972.01.11
Interior Staining
Minor interior staining was noted during the building inspection in areas unlikely to
be an environmental concern for the subject property.
Sewer, Water and Utilities
Sewage disposal is to an on-site and off-site wastewater treatment system. Water
service is supplied by on-site wells and the public water utility. Progress Energy
provides the electrical service.
Above Ground Storage Tanks
There is a 275-gallon used refrigeration oil tank located in the engine room of the
processing plant. The tank appears to be maintained in an environmentally safe
manner. Therefore, it does not appear to be an environmental concern to the site at
this time.
Truck/Car Fleets
No truck or car fleets are currently maintained on the property.
Odors
No strong, pungent, or noxious odors were noted in the buildings.

2.5.2 Survey of Property Grounds
The visual inspection of the grounds associated with the property concentrated on the
identification of soil discolorations, disruptions to vegetative cover, solid waste disposal areas and other indicators of potential environmental hazards. The grounds associated with the (site
name) property are open, vegetated and wooded land. The following paragraphs describe the
findings of this survey.
Underground Storage Tanks
Indication of two underground storage tanks (USTs) was observed on the subject
property. a registered 10,000-gallon diesel tank and a 500-550-gallon gasoline tank,
both of which are located near the former truck shop building. According to Mr. Jim
Hendrick, the tanks have been pumped empty, however no documentation was
available.
BrightFields interviewed Ms. Pam Harrelson, Inspector for the North Carolina
Department of Environment and Natural Resources to ascertain the status of the
permitted underground storage tank at the facility. Ms. Harrelson indicated that she
had last inspected the subject property in early 2011 and had since put the site UST
permit into “temporary closure” status. She indicated that the facility had fallen out
of compliance for failing to submit corrosion protection monitoring results, leak
[16.6] [Phase I ESA Update - Pittsboro Processing Plant.pdf] [Page 15 of 214]

Phase I ESA Update Page 8 Pittsboro Processing Plant May 9, 2013 File: 2972.01.11
detection results and annual tank tightness testing results. NCDENR documentation,
provided by Ms. Harrelson, is provided in Appendix D.
When active, the tanks reportedly had spill/overfill protection, cathodic corrosion
protection and in-tank computerized leak detection systems. The tanks, installed in
1961 according to checklists provided by Ms. Harrelson which are included in
Appendix D, historically appeared to have been properly maintained and serviced.
Due to the maintenance status of the tanks and lack of reviewable maintenance
records on the tanks, including documentation that the tanks are empty, it is the
opinion of BrightFields, Inc. that the USTs represent a REC for the subject property
and that additional investigation is warranted. If proper maintenance activity records
are made available, the systems may be brought back into compliance, if the systems
are still intact.
BrightFields’ 2007 Phase I ESA stated the following about two UST systems that had
been abandoned in-place:
“An October, 2001 letter from TerraTech to Townsends is included in Appendix
F. The letter refers to an unregulated 6,000-gallon heating oil tank that was
abandoned in place between the plant and the maintenance building. The tank
was abandoned in place by TerraTech of Raleigh, NC. Soil samples were
collected around the tank in June 2001. The sample results indicated minor
concentrations of petroleum near the tank and were submitted to the State of
North Carolina for review. Because the site is not on the state LUST list, it
appears that no further action will be required for the tank abandonment. Based
on our review of this information the abandoned tank does not appear to represent
an environmental concern at this time.
“According to Mr. Judge, a Chatham County Fuel Storage Tank Installation,
Removal and Abandonment Record refers to a 10,000-gallon gasoline tank
abandoned in place near the truck scale building on the subject site.
“Mr. Judge does not have documentation on the 500-gallon gasoline tank that
appears on the Site Plan…The Site Plan indicates the tank has been abandoned.
Documentation was not available for review. Mr. Roger Mashburn (formerly with
Townsends, Inc.) stated in an email dated March 19, 2007 to BrightFields that the
tank is 550-gallons and ‘is still in the ground empty’.”
Above Ground Storage Tanks
Numerous above ground storage tanks (ASTs) were located on the grounds at the time
of the inspection, including: a 1 million-gallon reuse water tank, a 300,000-gallon
potable water tank, a self-contained 275-gallon used refrigeration oil tank, a 52,000-
pound liquid CO2 tank, a 18,000-pound anhydrous ammonia tank, and an out-of-
service 275-gallon used motor oil tank. The tanks have reportedly been pumped
empty since the plant closed in September 2011. These tanks appear to be maintained
in an environmentally safe manner. No staining was noted in proximity to the tanks.
[16.6] [Phase I ESA Update - Pittsboro Processing Plant.pdf] [Page 16 of 214]

Phase I ESA Update Page 9 Pittsboro Processing Plant May 9, 2013 File: 2972.01.11
Solid Waste Disposal Areas
No areas of solid waste disposal were noted during the on-site investigation.
Materials Storage
Numerous 55-gallon and smaller drums of cleaning and wastewater treatment
chemicals were located on a concrete pad inside a fenced storage area near the
maintenance building. The materials appear to be properly labeled and stored and the
drums were observed to be in intact condition.
Wells
Several production wells are reportedly located on the subject property. The wells
were used when the plant was in operation and they supply water to the plant. In
addition, the site receives potable water from the public water utility.
Septic Systems
No evidence of septic tanks was observed on the subject property. However, based on
the size and/or age of the property, septic systems may be present on the site.
Polychlorinated Biphenyls (PCBs)/PCB Containing Equipment
PCBs are a group of chlorinated organic compounds primarily used in electrical
transformers, capacitors, heat transfer and hydraulic systems, adhesives, paints and
sealants. Their widespread use has resulted mainly from their chemical stability, low
water solubility, low vapor pressure, low flammability, high heat capacity and low
electrical conductivity. World production of PCBs ended in 1983, however most
manufacturers halted production in the 1970s due to the evidence of highly
carcinogenic nature of the compounds.
Pole and pad-mounted transformers were noted on the property. No stains, leaks or
distressed vegetation was noted in association with these transformers. The
transformers are reportedly owned by Progress Energy. The transformers did not have
labeling indicating that they were PCB-free in open view. However, based on the fact
that the transformers are owned by Progress and that there was no sign of leakage, the
transformers do not appear to represent an environmental concern at this time.
There are two truck scales on the subject property grounds. According to Jim
Hendrick, the scales are electronic and do not contain hydraulic oils.
Stained Soils and Distressed Vegetation
No signs of stained soils or distressed vegetation were noted during the on-site
investigation.

[16.6] [Phase I ESA Update - Pittsboro Processing Plant.pdf] [Page 17 of 214]

Phase I ESA Update Page 10 Pittsboro Processing Plant May 9, 2013 File: 2972.01.11
Ponds and Surface Water
Turkey Creek bisects a portion of the subject property and flows between the
processing plant and the wastewater treatment building. Oil sheen was not noted on
the creek.
Odors
No strong, pungent, or noxious odors were noted on the grounds.
2.5.3 Surrounding Land Use
The surrounding land uses are generally open land, farm land and wooded land. No
obvious environmental hazards were noted on the adjoining properties. The Omton, LLC-
owned Pittsboro Farm, which is contains a wastewater treatment lagoon and spray irrigation
fields that process waste water from the plant, adjoins the south side of the subject property.
3.0 DISCLAIMER
While every attempt is made to provide as thorough a review as possible it is not
practical to provide a 100% survey of the surface and subsurface areas of any site. As such,
the findings and recommendations are, by necessity, based on the information and specific locations reviewed, and the conditions of the parcel and facility at the time of the on-site
survey. BrightFields, Inc. does not warrant its findings or conclusions beyond this
information and survey.
The following portions of the subject property were not made available for inspection to BrightFields, Inc. at the time of the site visit:
1) BrightFields did not have access to the interior of the former truck shop/maintenance building (located on the north side of Moncure Pittsboro Rd.). Jim Hendrick stated that the shop was “empty” and contained no
parts washers, hydraulic lifts or drums.
BrightFields was able to trace the history of the property back to 1955, when aerials show the property was already commercially developed. BrightFields, Inc. was not able to
determine the prior usage of the property dating back to the property’s obvious first
developed use of the site (including agricultural uses), or back to 1940 using readily available, reasonably ascertainable and useful information (see Section 2.1). However, it is
the opinion of BrightFields that determining the prior usage of the subject property dating
back to the first developed use would not be likely to provide additional useful information or identify environmental issues that were not already identified by this survey.
4.0 FINDINGS/OPINION
The following items of interest were identified during the Phase I ESA:
1) Drums and containers/vessels of potentially hazardous materials and/or wastes were
noted within the processing plant and maintenance buildings during the on-site
[16.6] [Phase I ESA Update - Pittsboro Processing Plant.pdf] [Page 18 of 214]

Phase I ESA Update Page 11 Pittsboro Processing Plant May 9, 2013 File: 2972.01.11
investigation. Most of the materials were wastewater treatment or cleaning
chemicals. Some drums that appeared to be waste refrigeration or hydraulic oil were
noted in the plant building. The drums appeared to be in good condition and no leaks
or spills were observed. BrightFields observed piping and lines or reservoirs in
systems that previously used hydraulic oil, refrigeration oil and/or other materials.
Mr. Hendrick indicated that he believed the refrigeration oil had been drained from
various tanks but is still in the compressors and that hydraulic oil, stored in a 250-
gallon reservoir inside the lean-to shed between the plant and employee parking lot
and in hydraulic lines is still present. BrightFields did not observe indication that a
release had occurred from these systems.
Universal wastes, such as florescent light tubes, ballasts that contain PCBs,
equipment containing refrigerants such as air conditioners, chillers, and water
fountains, mercury switches/thermostats, and other materials were not surveyed as
part of this Phase I ESA. These items can require special disposal but no action is
necessary if they are to remain in use.
2) There is a 275-gallon used refrigeration oil AST located in the engine room of the processing plant. The tank appears to be maintained in an environmentally safe
manner. Therefore, it does not appear to be an environmental concern to the site at
this time.
3) Indication of two underground storage tanks (USTs) was observed on the subject
property. a registered 10,000-gallon diesel tank and a 500-550-gallon gasoline tank,
both of which are located near the former truck shop building. According to Mr. Jim
Hendrick, the tanks have been pumped empty, however no documentation was
available.
BrightFields interviewed Ms. Pam Harrelson, Inspector for the North Carolina
Department of Environment and Natural Resources to ascertain the status of the
permitted underground storage tank at the facility. Ms. Harrelson indicated that she
had last inspected the subject property in early 2011 and had since put the site UST
permit into “temporary closure” status. She indicated that the facility had fallen out
of compliance for failing to submit corrosion protection monitoring results, leak
detection results and annual tank tightness testing results. NCDENR documentation,
provided by Ms. Harrelson, is provided in Appendix D.
When active, the tanks reportedly had spill/overfill protection, cathodic corrosion
protection and in-tank computerized leak detection systems. The tanks, installed in
1961 according to checklists provided by Ms. Harrelson which are included in
Appendix D, historically appeared to have been properly maintained and serviced.
Due to the maintenance status of the tanks and lack of reviewable maintenance
records on the tanks, including documentation that the tanks are empty, it is the
opinion of BrightFields, Inc. that the USTs represent a REC for the subject property
and that additional investigation is warranted. If proper maintenance activity records
[16.6] [Phase I ESA Update - Pittsboro Processing Plant.pdf] [Page 19 of 214]

Phase I ESA Update Page 12 Pittsboro Processing Plant May 9, 2013 File: 2972.01.11
are made available, the systems may be brought back into compliance, if the systems
are still intact.
BrightFields’ 2007 Phase I ESA stated the following about two UST systems that had
been abandoned in-place:
“An October, 2001 letter from TerraTech to Townsends is included in Appendix
F. The letter refers to an unregulated 6,000-gallon heating oil tank that was
abandoned in place between the plant and the maintenance building. The tank
was abandoned in place by TerraTech of Raleigh, NC. Soil samples were
collected around the tank in June 2001. The sample results indicated minor
concentrations of petroleum near the tank and were submitted to the State of
North Carolina for review. Because the site is not on the state LUST list, it
appears that no further action will be required for the tank abandonment. Based
on our review of this information the abandoned tank does not appear to
represent an environmental concern at this time.
“According to Mr. Judge, a Chatham County Fuel Storage Tank Installation,
Removal and Abandonment Record refers to a 10,000-gallon gasoline tank
abandoned in place near the truck scale building on the subject site.
“Mr. Judge does not have documentation on the 500-gallon gasoline tank that
appears on the Site Plan…The Site Plan indicates the tank has been abandoned.
Documentation was not available for review. Mr. Roger Mashburn (formerly
with Townsends, Inc.) stated in an email dated March 19, 2007 to BrightFields
that the tank is 550-gallons and ‘is still in the ground empty’.”
4) Numerous above ground storage tanks (ASTs) were located on the grounds at the time
of the inspection, including: a 1 million-gallon reuse water tank, a 300,000-gallon
potable water tank, a self-contained 275-gallon used refrigeration oil tank, a 52,000-pound liquid CO2 tank, a 18,000-pound anhydrous ammonia tank, and an out-of-
service 275-gallon used motor oil tank. The tanks have reportedly been pumped
empty since the plant closed in September 2011. These tanks appear to be maintained in an environmentally safe manner. No staining was noted in proximity to the tanks.
5) Numerous 55-gallon and smaller drums of cleaning and wastewater treatment
chemicals were located on a concrete pad inside a fenced storage area near the maintenance building. The materials appear to be properly labeled and stored and the
drums were observed to be in intact condition.
6) Several production wells are reportedly located on the subject property. The wells were used when the plant was in operation and they supply water to the plant. In addition, the site receives potable water from the public water utility.
5.0 CONCLUSIONS
We have performed a Phase I ESA Update in conformance with the scope and limitations of ASTM Practice E 1527-05 of the Pittsboro Processing Plant property. Any
[16.6] [Phase I ESA Update - Pittsboro Processing Plant.pdf] [Page 20 of 214]

Phase I ESA Update Page 13 Pittsboro Processing Plant May 9, 2013 File: 2972.01.11
exceptions to, or deletions from this practice are described in Sections 1.0 and 3.0 of this
report. This assessment has revealed no RECs for the subject property except for the
following:
1) Due to the maintenance status of the tanks, it is the opinion of BrightFields, Inc.
that the USTs represent a REC for the subject property and that additional
investigation is warranted.
[16.6] [Phase I ESA Update - Pittsboro Processing Plant.pdf] [Page 21 of 214]
Site Boundary
Path: N:\Aerials and maps\Working GIS Files (Do Not Edit)\11 Phase I\2972.01.11 - Omtron Properties\MXD\Pittsboro Processing\Fig1SiteLoc.mxd
BrightFields, Inc.Environmental EvaluationInvestigation, and Remediation801 Industrial Street, Suite 1Wilmington, Delaware 19801 302-656-9600302-656-9700 fax
Site Location/Topographic MapPittsboro Processing PlantPittsboro, North Carolina
ByDrawnChecked
Date
Project #
Scale: File Name:
Fig. No.ADSMHJ2972.01.11 Figure 1
0 500 1,000Feet
Fig1SiteLoc.mxd
NCSite Location
VA
SCGA
TN
KY
/
2/28/20132/28/2013 1:12,000
Source: USGS - © 2010 National Geographic Society.Site Boundary
[16.6] [Phase I ESA Update - Pittsboro Processing Plant.pdf] [Page 22 of 214]
SIte BoundaryTax Parcel #9741-80-2713.000
USTs
Sheds & OldMaintenanceBuilding
WastewaterReuse Building
OffalBuilding
LiveShed
Plant
Moncure Pitt
s
b
o
r
o

R
d
May Farm R
d
Farmin
g
d
a
l
e

L
n
BrightFields, Inc.Environmental EvaluationInvestigation, and Remediation801 Industrial Street, Suite 1Wilmington, Delaware 19801 302-656-9600302-656-9700 fax
ByDrawnChecked
Date
Project #
Scale: File Name:
Fig. No.ADSMHJ 3/6/20133/6/20132972.01.11 Figure 2
0 125 250Feet
Fig2SiteLayout.mxd
/
Site Layout and Surrounding Land UsesPittsboro Processing PlantPittsboro, North Carolina
1:3,000
Path: N:\Aerials and maps\Working GIS Files (Do Not Edit)\11 Phase I\2972.01.11 - Omtron Properties\MXD\Pittsboro Processing\Fig2SiteLayout.mxdSource: (c) 2010 Microsoft Corporation and its data suppliers.
Site BoundaryTax Parcels
[16.6] [Phase I ESA Update - Pittsboro Processing Plant.pdf] [Page 23 of 214]

APPENDIX A
BIOGRAPHICAL SKETCHES

The following professionals were responsible for the completion of this Environmental Assessment:

James A. Manna, Program Manager. B.A., Biological Sciences, University of Delaware. Nineteen
years of experience performing Preliminary Environmental Assessments (modified Transaction
Screens) and Phase I Environmental Site Assessments of real properties and/or facilities which
included a review of Federal, State and local environmental regulations and agency records, historic
aerial photographs, and title information, completion of on-site investigations, identification of areas
of potential environmental concern based on the investigative results, and preparation of appropriate
sampling and/or remediation programs. Twelve years experience performing instrumental and
microbiological analysis of soil and water/wastewater. Four years experience performing asbestos
analysis of air and bulk samples using Polarized Contrast Microscopy (PCM) and Polarized Light
Microscopy (PLM). Skilled in data review, validation and technical report preparation. Board
Member of: Commercial/Industrial Realty Council, Chamber of Commerce for Greater Milford.
Specialized training and courses include: OSHA 40-Hour Hazardous Waste Operations Safety
Training, Red Cross Standard First Aid and CPR Training, Microscopical Identification of Asbestos,
Quality Assurance of Chemical Measurements, DC Briefing on Environmental Due Diligence, Due
Diligence at Dawn Educational Forums, ASTM Phase I Environmental Site Assessments for
Commercial Real Estate, completed courses toward Certificate in Environmental Studies, University
of Delaware.

Gregg H. Crystall, Program Manager. M.S. Environmental Science, Drexel University; B.S.
Biology, SUNY College at Oneonta, NY. Thirty one years experience in environmental project and
program management including site assessment, inspections and health and safety plan preparation
and implementation, Remedial Investigation/Feasibility Studies and Remedial Action planning and
implementation. Experience in managing projects and personnel in federal government Remedial
and Emergency Response and Removal programs. Project Manager for numerous Delaware and
Pennsylvania Brownfield and Act 2 Investigations. Managed technical experts and community
outreach staff for the Mid Atlantic Region of the USEPA. Served as health and safety officer for
numerous private party environmental cleanups and has been a trainer for the 40 hour OSHA
Hazardous Waste Operations Safety Training. Has On-site Supervisor training, Confined Space
entry and rescue training, American Red Cross Heart-saver First Aid certification, current OSHA 40-
hour and 8-hour HAZWOPER certified.

Matthew H. Jones, Project Manager. B.A., Physical Geography, University of Delaware.
Seventeen years experience performing Preliminary Environmental Site Assessments and Phase I
Environmental Assessments environmental site inspections. Other pertinent experience includes:
lead paint inspections, risk assessment and abatement project designs, soil and groundwater sampling
projects, bioremediation of petroleum-contaminated soil, asbestos sampling, magnetometer surveys
designed to identify hidden underground storage tanks, asbestos, tap water and paint sampling; and
the preparation of Spill Prevention, Control and Countermeasure Plans, Facility Response Plans and
Stormwater Management Plans. Certifications include: Delaware-Licensed Lead Risk Assessor, and
Lead Abatement Project Designer; Pennsylvania-certified Lead Risk Assessor, Maryland-certified
Lead Risk Assessor, U.S. EPA/New York State Lead Risk Assessor. Specialized training and courses
include: Graduate coursework in Geographic Information Systems; Certificate in Environmental
Studies, University of Delaware; OSHA 40-Hour Hazardous Waste Operations Safety Training;
OSHA Confined Space Entry Training, OSHA On-Site Supervisor Training, Red Cross CPR and
First Aid training.
[16.6] [Phase I ESA Update - Pittsboro Processing Plant.pdf] [Page 24 of 214]

Appendix D

Interviews

Pittsboro Processing Plant

[16.6] [Phase I ESA Update - Pittsboro Processing Plant.pdf] [Page 168 of 214]
[16.6] [Phase I ESA Update - Pittsboro Processing Plant.pdf] [Page 169 of 214]
[16.6] [Phase I ESA Update - Pittsboro Processing Plant.pdf] [Page 170 of 214]
[16.6] [Phase I ESA Update - Pittsboro Processing Plant.pdf] [Page 171 of 214]
[16.6] [Phase I ESA Update - Pittsboro Processing Plant.pdf] [Page 172 of 214]
[16.6] [Phase I ESA Update - Pittsboro Processing Plant.pdf] [Page 173 of 214]
[16.6] [Phase I ESA Update - Pittsboro Processing Plant.pdf] [Page 174 of 214]
[16.6] [Phase I ESA Update - Pittsboro Processing Plant.pdf] [Page 175 of 214]
[16.6] [Phase I ESA Update - Pittsboro Processing Plant.pdf] [Page 176 of 214]
[16.6] [Phase I ESA Update - Pittsboro Processing Plant.pdf] [Page 177 of 214]
[16.6] [Phase I ESA Update - Pittsboro Processing Plant.pdf] [Page 178 of 214]
[16.6] [Phase I ESA Update - Pittsboro Processing Plant.pdf] [Page 179 of 214]
[16.6] [Phase I ESA Update - Pittsboro Processing Plant.pdf] [Page 180 of 214]
[16.6] [Phase I ESA Update - Pittsboro Processing Plant.pdf] [Page 181 of 214]
[16.6] [Phase I ESA Update - Pittsboro Processing Plant.pdf] [Page 182 of 214]
[16.6] [Phase I ESA Update - Pittsboro Processing Plant.pdf] [Page 183 of 214]
[16.6] [Phase I ESA Update - Pittsboro Processing Plant.pdf] [Page 184 of 214]
[16.6] [Phase I ESA Update - Pittsboro Processing Plant.pdf] [Page 185 of 214]
[16.6] [Phase I ESA Update - Pittsboro Processing Plant.pdf] [Page 186 of 214]
[16.6] [Phase I ESA Update - Pittsboro Processing Plant.pdf] [Page 187 of 214]
[16.6] [Phase I ESA Update - Pittsboro Processing Plant.pdf] [Page 188 of 214]
[16.6] [Phase I ESA Update - Pittsboro Processing Plant.pdf] [Page 189 of 214]

North Carolina Department of Environment and Natural Resources
Beverly E. Perdue, Governor Dee A. Freeman, Secretary
July 18, 2011

CERTIFIED MAIL 7010 0780 0001 9852 9388
RETURN RECEIPT REQUESTED

Service of Process Agent
NC Secretary of State
PO Box 29622
Raleigh, NC 27626-0622

Re: Service of Process of Notice of Violation for Violation(s) of:
15A NCAC 2N .0303, .0402, .0502, .0505, .0506 and Article 21A of the NCGS Chapter 143-
215.94QQ by Townsends, Inc.
Townsends, Inc., 2701 Moncure Rd., Pittsboro, NC 27312
Chatham County
Facility ID#: 0-032432

Dear Sir or Madam:

Enclosed for Service of Process on Townsends, Inc., please find an original and one copy of a Notice of
Violation in the above-referenced matter. Per the application for certificate of Withdrawal on the
Secretary of State database, this Notice could not be served directly to the corporation of Townsends, Inc.

Thank you for your assistance in this matter. Should you have any questions or concerns, please do not
hesitate to contact me at 910-867-6869.

Sincerely,
Pamela Harrelson
Environmental Specialist
Enclosures

cc: Ruth Strauss, Permits and Inspection Branch
Files

An Equal Opportunity / Affirmative Action Employer - 50 % Recycled \ 10 % Post Consumer Paper
Division of Waste Management/UST Section, 1637 Mail Service Center, Raleigh, North Carolina 27699-1637 Phone: [phone] \ FAX: [phone] \ Internet: www.enr.state.nc.us
[16.6] [Phase I ESA Update - Pittsboro Processing Plant.pdf] [Page 190 of 214]

North Carolina Department of Environment and Natural Resources
Beverly E. Perdue, Governor Dee A. Freeman, Secretary

July 18, 2011

VIA SECRETARY OF STATE
RETURN RECEIPT REQUESTED

Corporation Service Company, Registered Agent
Townsends, Inc.
327 Hillsborough St.
Raleigh, NC 27603

Re: NOTICE OF VIOLATION OF 15A NCAC 2N .0303 (RGS1), .0402 (MT3), .0502 (LD1 and LD12),
.0505 (LD18), .0506 (RCD5) and NCGS 143-215.94QQ (OPTR2)
Townsends, Inc., 2701 Moncure Road, Pittsboro, NC 27312
Chatham County
Facility ID# 0-032432

Dear Sir or Madam:

On March 25, 2011, I conducted a compliance inspection at the above-referenced facility. I observed that
underground storage tanks (USTs) at Townsends, Inc. are not in compliance with North Carolina UST
regulations (North Carolina Administrative Code [NCAC] 2N "Criteria and Standards Applicable to
Underground Storage Tanks and/or North Carolina General Statutes [NCGS]). According to 15A NCAC 2N
.0203 Townsends, Inc. is identified as the owner and/or operator of UST(s) at Townsends, Inc..

The enclosed Notice of Violation (NOV) details the violation(s) noted on March 25, 2011 at Townsends, Inc.
and the actions required by Townsends, Inc. to correct the violation(s). Assessment of civil penalties may be
recommended for violations described in this NOV, as well as, operating permit revocation/denial unless the
violations are corrected. If Townsends, Inc. believes that the inspection findings are in error, or if Townsends,
Inc. has any questions pertaining to the enclosed NOV and/or “Violations and Corrective Actions for 2N
Compliance Inspection (Attachment)” please have it contact me at 910-867-6869.

Sincerely,
Pamela Harrelson
Environmental Specialist
Enclosures

cc: Michael Phelps, WSRO
Files

An Equal Opportunity / Affirmative Action Employer - 50 % Recycled \ 10 % Post Consumer Paper

Division of Waste Management/UST Section, 1637 Mail Service Center, Raleigh, North Carolina 27699-1637 Phone: [phone] \ FAX: [phone] \ Internet: www.enr.state.nc.us
[16.6] [Phase I ESA Update - Pittsboro Processing Plant.pdf] [Page 191 of 214]
NC Division of Waste Management / Underground Storage Tank Section
NOTICE OF VIOLATION (NOV)
Facility I.D. #: 0-032432 Facility Name: Townsends, Inc. Inspection Date: 3/25/2011 Permit Expires on: 09/2011

X 15A NCAC 2N Sect.# Description of Violation (Violation Code) X 15A NCAC 2N Sect.# Description of Violation (Violation Code)
1. .0303 Failure to Register or Update Registration for a UST System (RGS1) 4. .0502 Failure to Provide Leak Detection for Piping (LD12)
2. .0402 Failure to inspect a UST System with an Impressed Current System Every
60 days (MT3) 5. .0505 Failure to Perform Annual Test of Operation for Automatic Line Leak
Detector (LD18)
3. .0502 No Leak Detection for Tanks (LD1) 6. .0506 Failure to Maintain Records demonstrating Compliance with Leak
Detection requirements. (RCD5)
7. Article 21A of NCGS Chapter 143- 215.94QQ Failure to complete Primary Operator
training (OPTR2)
Additional Information:

1. .0303 RGS1: During the inspection Roger Mashburn, a representative for Townsends, Inc., told me that Townsends, Inc. was bought out
of bankruptcy in December 2010 by OMTRON USA, LLC. On March 30, 2011, Townsends, Inc. filed a Certificate of Withdrawal with the
Secretary of State. Ownership has not been changed and it appears that Townsends, Inc. is no longer a company that is registered to
conduct business with the State of North Carolina. Please have the registration updated to show the correct owner of the UST system
located at this facility. A UST-8 form, “Notification for Activities Involving UST’s” and a UST-15A form, “Change of Ownership of UST
Systems” has been enclosed for your convenience.

2. .0402 MT3: The volt and amp meters on the Impressed Current System must be recorded at least once every 60 days. The volt and amp
readings have not been recorded. Please record the volt and amp meter readings at least once every 60 days and submit a copy of the next 2
meter readings to the UST Section.

3. .0502 LD1: Leak detection records were not available for the Diesel UST during the inspection. Please have a Tank Tightness Test
conducted on the Diesel UST. Please submit a copy of the results and a copy of the next months leak detection records to the UST Section.

4. .0502 LD12: A line tightness test must be conducted on a pressurized piping system every year. Please have a line tightness test
conducted on the Diesel UST pressurized piping system and submit a copy of the test results to the UST Section.

5. .0505 LD18: The automatic line leak detector (ALLD) that is installed on the Diesel pressurized piping system must be tested every year.
Please have the ALLD tested and submit a copy of the test results to the UST Section.

6. .0506 RCD5: Leak detection records were missing for the Regular UST tank and piping. Any sampling, monitoring or testing must be
maintained for at least one year. Please maintain the required records and submit a copy of any testing results and the next months leak
detection records to the UST Section.

7. G.S. 143-215.94QQ OPTR2: The Primary Operator for this facility must go to the following website
http://portal.ncdenr.org/web/wm/ust/registration and register for one of the next Tank School courses being conducted over the next 6
months. Tank School must be completed and a Primary Operator training certificate achieved within 6 months of receipt of this notice.

Separate page(s) that cite the full violation and explain the required corrective action for each violation indicated above are attached to this Notice. Please take the necessary corrective action(s) for the
above violation(s) to bring the site into compliance, or complete the requirements for permanent closure in accordance with 15A NCAC 2N .0405, .0802 and .0803 and the most recent UST Section site
assessment and cleanup guidance. Corrective actions must be taken and reported to the appropriate DWM regional office within 30 days of receipt of this notice, unless otherwise noted, to avoid
recommendation of civil penalties for continuing violations. Continued non-compliance could result in revocation or non-renewal of an UST operating permit.

Assessment of civil penalties may automatically be recommended for violations described within this NOV. Your prompt attention to the items herein is required. Failure to comply with the state's
rules, in the manner and time specified, may result in the assessment of additional civil penalties and/or the use of other enforcement mechanisms available to the state. Each day that a violation
continues may be considered a separate violation.

UST-14 (9/14/10)
[16.6] [Phase I ESA Update - Pittsboro Processing Plant.pdf] [Page 192 of 214]

North Carolina Department of Environment and Natural Resources
Beverly Eaves Perdue, Governor Dee Freeman, Secretary
An Equal Opportunity / Affirmative Action Employer - 50 % Recycled \ 10 % Post Consumer Paper

Division of Waste Management/UST Section, 1637 Mail Service Center, Raleigh, North Carolina
27699-1637
Phone: [phone] \ FAX: [phone] \ Internet: www.enr.state.nc.us
September 09, 2011

CERTIFIED MAIL 70100780000198529487
RETURN RECEIPT REQUESTED
CT Corporation System, Registered Agent Omtron USA, LLC
150 Fayetteville St., Box 1011 Raleigh, NC 27601
Re: NOTICE OF VIOLATION OF 15A NCAC 2N.0402(MT3), .0502(LD12, LD1), .0506(RCD5),
.0505(LD18), .0303(RGS1), NCGS143-215.94QQ(OPTR2) Townsends, Inc
270 Moncure Road, Pittsboro, NC 27312 Chatham County
Facility ID#: 00-0-0000032432
Dear Ct Corporation System:
On March 25, 2011, I conducted a compliance inspection at the above-referenced facility. I observed that underground storage tanks (USTs) at Townsends, Inc are not in compliance with North Carolina UST regulations
(North Carolina Administrative Code [NCAC] 2N "Criteria and Standards Applicable to Underground Storage Tanks). According to those rules (15A NCAC 2N .0203) Omtron USA, LLC is identified as the owner and/or
operator of UST(s) at Townsends, Inc.
The following violations of the state rules (15A NCAC 2N) were observed on March 25, 2011 at Townsends, Inc. Following each violation are the actions required to correct the violations:

Violation 1: NCGS143-215.94QQ OPTR2; Failure to complete Primary Operator training as required by NCGS
143-215.94QQ.
Corrective Action(s):
1) The Primary Operator designated for this facility must go to the following website http://portal.ncdenr.org/web/wm/ust/registration and register for one of the next Tank School courses being
conducted over the next 6 months. Tank School must be completed and a Primary Operator training certificate achieved within 6 months of receipt of this notice.

Violation 2: 15A NCAC 2N.0402 MT3; Failure to inspect a UST system with an impressed current cathodic protection system every 60 days as required by federal regulation 40 CFR 280.31(c) (as incorporated by 15A
NCAC 2N .0402).
Corrective Action(s):
1) Please inspect the ampere and volt meters associated with the impressed current cathodic protection system every 60 days and maintain records of the ampere readings noted during your inspection. The results of the
last 3 meter readings must be available for review by a Division of Waste Management UST Section inspector during a compliance inspection.

[16.6] [Phase I ESA Update - Pittsboro Processing Plant.pdf] [Page 193 of 214]

Corrective Action Ending: Please submit copies of the next 2 meter readings to the inspector at the address
provided.

Violation 3: 15A NCAC 2N.0502 LD12; Failure to provide leak detection for pressurized piping systems associated with regulated tanks in accordance with federal regulation 40 CFR 280.41(b)(1)(ii) (as incorporated
by 15A NCAC 2N .0502).
Corrective Action(s): 1) Conduct a line tightness test for each piping system associated with the regulated tank(s). Line tightness
testing is required annually for pressurized piping systems. Within 30 days of receipt of this notice, please submit a copy of the line tightness test results to the inspector at the address provided; OR

Violation 4: 15A NCAC 2N.0506 RCD5; Failure to maintain records demonstrating compliance with the leak detection requirements as required by federal regulation 40 CFR 280.45(b) (as incorporated by 15A NCAC 2N
.0506).
Corrective Action(s): 1) The cited rule requires that results of any sampling, testing, or monitoring must be maintained for at least 1 year. Please maintain the required records and submit to the inspector, at the address provided, a copy of the
following: A. Submit, within 30 days of receipt of this notice, any testing results (tank tightness tests, line tightness tests, etc.); AND B. Submit, within 30 days of receipt of this notice, a copy of your leak detection
records for your chosen method of leak detection for the month following the date of receipt of this notice.
Violation 5: 15A NCAC 2N.0502 LD1; Failure to provide leak detection for a regulated tank in accordance with federal regulation 40 CFR 280.41 (as incorporated by 15A NCAC 2N .0502, 15A NCAC 2N .0301, 15A NCAC
2N .0302 and/or 15A NCAC 2N .0304).
Corrective Action(s): 1) Single-wall monitored UST: Please immediately conduct a tank tightness test (note: an Automatic Tank
Gauge can not be used to conduct the tank tightness test) on all applicable USTs.
Corrective Action Ending: Please submit, within 30 days of receipt of this notice, a copy of the tank tightness test results (and if applicable, interstitial space tightness test results) and submit, within 30 days of receipt of this notice,
a copy of your leak detection records (for your chosen leak detection method(s)) for the month following the date of receipt of this notice to the inspector at the address provided.

Violation 6: 15A NCAC 2N.0505 LD18; Failure to conduct an annual test of the operation of an automatic line leak detector (MLLD or ELLD) of a pressurized piping system associated with a regulated tank in accordance
with federal regulation 40 CFR 280.44(a) (as incorporated by 15A NCAC 2N .0505).
Corrective Action(s): 1) Please conduct a test of the operation of the automatic line leak detector and submit a copy of the results
within 30 days of receipt of this notice to the inspector at the address provided.

Violation 7: 15A NCAC 2N.0303 RGS1; Failure to register or update the registration for a UST system as required by federal regulation 40 CFR 280.22 (as incorporated by 15A NCAC 2N .0303).
Corrective Action(s): 1) Submit a UST-8 form Notification for Activities Involving USTs
2) Submit a UST-15 form Change of Ownership of UST systems
Corrective Action Ending: Please send the completed UST-8 and/or UST-15 form to the address located on the form and send a copy to the inspector at the address provided in this notice. It is recommended that you also keep a
copy for your records.

[16.6] [Phase I ESA Update - Pittsboro Processing Plant.pdf] [Page 194 of 214]

Corrective actions must be completed and reported to the inspector at the address provided within 30 days of receipt
of this notice, unless otherwise noted in one of the corrective actions listed above. Assessment of civil penalties may
be recommended for violations described in this NOV, as well as, operating permit revocation/denial unless the violations are corrected. If Omtron USA, LLC believes that the inspection findings are in error, or if Omtron USA, LLC has any questions pertaining to this NOV and/or corrective actions please have it contact me at [phone].
Sincerely,
Pam Harrelson
Environmental Specialist Enclosures cc: Michael Phelps w/ Enclosures
Files
[16.6] [Phase I ESA Update - Pittsboro Processing Plant.pdf] [Page 195 of 214]
[16.6] [Phase I ESA Update - Pittsboro Processing Plant.pdf] [Page 196 of 214]

North Carolina Department of Environment and Natural Resources

Beverly Eaves Perdue, Governor Dee Freeman, Secretary
An Equal Opportunity / Affirmative Action Employer - 50 % Recycled \ 10 % Post Consumer Paper

Division of Waste Management/UST Section, 1637 Mail Service Center, Raleigh, North Carolina 27699-1637
Phone and Fax: [phone] \ Internet: portal.ncdenr.org/web/wm
November 17, 2011
CERTIFIED MAIL 70111150000028818713
RETURN RECEIPT REQUESTED CT Corporation System, Registered Agent Omtron USA, LLC
150 Fayetteville St., Box 1011
Raleigh, NC 27601
Re: Recommendation for Enforcement Action Townsends, Inc
270 Moncure Road, Pittsboro, NC 27312
Chatham County Facility ID#: 00-0-0000032432
Dear Ct Corporation System:

This letter is to notify you that this office is considering recommending enforcement action to the Director of the Division of Waste Management. The recommendation for enforcement concerns the
violations cited in the Notice of Violation (NOV) dated September 9, 2011 which was previously
sent to you. Specifically: NCGS 143-215.94QQ for Failure to complete Primary Operator training,
15A NCAC 2N.0402 for Failure to perform 60 day CP Checks., 15A NCAC 2N.0502 for Failure to provide LD for pressurized piping., 15A NCAC 2N.0506 for Failure to maintain LD records., 15A NCAC 2N.0502 for Failure to provide tank leak detection., 15A NCAC 2N.0505 for Failure to do
annual test of ALLD., 15A NCAC 2N.0303 for Failure to register or update registration.

If there is an explanation for the violations cited, or if you believe there are other factors which should be considered, please submit your response to me in writing within 10 days of receipt of this
notice. Your explanation will be reviewed, and if enforcement action is still deemed appropriate,
your explanation will be forwarded to the Director with the enforcement package for his
consideration. In accordance with NCGS 143-215.94U, continued non-compliance can result in
revocation of the current operating permit or non-renewal of future operating permits for this facility.

[16.6] [Phase I ESA Update - Pittsboro Processing Plant.pdf] [Page 197 of 214]

If you have any questions concerning this matter, please contact me at [phone].

Sincerely,
Pamela Harrelson
Environmental Specialist
cc: Ruth Strauss, Permits and Inspection Branch (electronic)
Files (electronic)
[16.6] [Phase I ESA Update - Pittsboro Processing Plant.pdf] [Page 198 of 214]
[16.6] [Phase I ESA Update - Pittsboro Processing Plant.pdf] [Page 199 of 214]

Appendix E

Past Reports and Documents

Pittsboro Processing Plant

[16.6] [Phase I ESA Update - Pittsboro Processing Plant.pdf] [Page 200 of 214]
[16.6] [Phase I ESA Update - Pittsboro Processing Plant.pdf] [Page 201 of 214]
[16.6] [Phase I ESA Update - Pittsboro Processing Plant.pdf] [Page 202 of 214]
[16.6] [Phase I ESA Update - Pittsboro Processing Plant.pdf] [Page 203 of 214]
[16.6] [Phase I ESA Update - Pittsboro Processing Plant.pdf] [Page 204 of 214]
[16.6] [Phase I ESA Update - Pittsboro Processing Plant.pdf] [Page 205 of 214]
[16.6] [Phase I ESA Update - Pittsboro Processing Plant.pdf] [Page 206 of 214]
[16.6] [Phase I ESA Update - Pittsboro Processing Plant.pdf] [Page 207 of 214]
[16.6] [Phase I ESA Update - Pittsboro Processing Plant.pdf] [Page 208 of 214]
[16.6] [Phase I ESA Update - Pittsboro Processing Plant.pdf] [Page 209 of 214]
Appendix F- Site Photographs
Pittsboro Processing Plant – BrightFields # 2972.01.11

PHOTOGRAPH A

Processing plant

PHOTOGRAPH B

Old live sheds/truck shop building
[16.6] [Phase I ESA Update - Pittsboro Processing Plant.pdf] [Page 210 of 214]
Appendix F- Site Photographs
Pittsboro Processing Plant – BrightFields # 2972.01.11

PHOTOGRAPH C

Pole barn

PHOTOGRAPH D

Fueling station outside former truck shop
[16.6] [Phase I ESA Update - Pittsboro Processing Plant.pdf] [Page 211 of 214]
Appendix F- Site Photographs
Pittsboro Processing Plant – BrightFields # 2972.01.11

PHOTOGRAPH E

Drums of waste fluid inside plant building

PHOTOGRAPH F

Transformers outside plant building
[16.6] [Phase I ESA Update - Pittsboro Processing Plant.pdf] [Page 212 of 214]
Appendix F- Site Photographs
Pittsboro Processing Plant – BrightFields # 2972.01.11

PHOTOGRAPH G

Electronic truck scale behind plant

PHOTOGRAPH H

Compressors inside containment outside plant engine room
[16.6] [Phase I ESA Update - Pittsboro Processing Plant.pdf] [Page 213 of 214]
Appendix F- Site Photographs
Pittsboro Processing Plant – BrightFields # 2972.01.11

PHOTOGRAPH I

Drum and AST outside new engine room

PHOTOGRAPH J

1,000,000-gallon and 300,000-gallon water storage tanks
[16.6] [Phase I ESA Update - Pittsboro Processing Plant.pdf] [Page 214 of 214]