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NCG020343_COMPLETE FILE - HISTORICAL_20090216
PERMIT NO. DOC TYPE DATE OF RESCISSION STORMWATER DIVISION CODING SHEET RESCISSIONS �1��-Oao3u� ❑ COMPLETE FILE - HISTORICAL YYYYWAIDD RC: Spruill 'Ibwn Pit Subject: Re: Spruill Town Pit From: Bethany Georgoulias <Bethany.Georgoulias@ncmaiLnet> Date: Mon, 16 Feb 2009 14:08:10 -0500 To: Al ]-lodge <Al.Hodge rr ncmail.net>, Danny Smith <Danny.Srnith a ncmail.net> CC: Thom Edgerton <Thom.Edgerton a ncmaii.net>, Shelton Sullivan <Shelton.Sullivan@ncmail.tlet>, John Hennessy <John.liennessy a NCMaiLnet>, Bradley Bennett <Bradley. Bennett a ncmail.net>, i7oyd.williams@ncmail.net All, I talked with Floyd Williams downstairs in DLR and caught him up on our conversation about Spruill Town Pit this morning. Here's a summary of what we went over: - We still don't know whether the Corp (or EPA, since this case had been referred to them) would even allow a site with this kind of outstanding violation to be permitted for dewatering (or disturbed any further). The WaRO is looking into that more. - The company proposing exploratory mining (Carolina Stone LLC) would need a permit to dewater; however, DWQ cannot issue a Certificate of Coverage under NCG020000 to allow dewatering without a valid Mining Permit from DLR. - Floyd explained that DLR wasn't planning to issue any kind of mining permit for the exploratory work, which would probably involve less than an acre. He's going to discuss options with Jim Simons since DWQ can't cover anybody under NCG02 without some kind of mining permit. It is a major concern for us to allow any dewatering operations/discharges that would be in conflict with 404/401 or other water quality rules and considerations, especially given the severe impacts by prior operations and litigation that surrounds this case. - I explained we'd discussed some alternatives with the WaRO that the applicants might consider in lieu dewatering within the existing mine footprint. DLR might be able to help with ideas in this regard. - Even if we could proceed with coverage under NCG02 for the 'exploratory phase' of this project, we would consider the route of an individual NPDES permit for any full-fledged mining operation that would result. Thanks, Bethany Thom Edgerton wrote: Hello, I just received this revised information of what I left with you yesterday. Carolina Stone is interested in being able to do some dewatering to explore prior to fully permitting the site. Please let me know if you need more information. Thanks, Thom Subject: Spruill Town Pit From: Andrew Purifoy <carolinastone3@msn.com> Date. Thu, 5 Feb 2C09 15:C0:30 -0500 To. Torn Edgerton <thom.edgerton@ncmail.net> To: Tom Edgerton <thom.edgerton@ncmail.net> Hello Thom, 1 of 2 2/16/2009 2:12 I'M Re: Spruill Town Pit We have revised the permit application and here are the maps to show you how we are proposing to route the water. Let me know if this is acceptable and then I will be able to finish the NOI and get started on the BMP Plans. Thank You, Denise Wilson Carolina Stone ------------------------------------------------------------------------- Windows Liver": Keep your life in sync. See how it works. <http://windowslive.com/howitworks?ocid-TXT TAGLM WL Q allup•howitworks 022009> ------------------------------------------------------------------------ Bethany Georgoulias Environmental Engineer NCDENR I DWQ I Stormwater Permitting Unit 1617 Mail Service Center, Raleigh, NC 27699-1617 512 N. Salisbury St, Raleigh, NC 27604 Phone: (919) 807-6372 Fax: (919) 807-6494 Website: hA2://h2o.enr.state.nc.us/su E-mail correspondence to and from this address may be subject to the North Carolina Public Records Law and may be disclosed to third parties. 2 of 2 2M &2009 2A 2 PM Re: 11"Wd: SIMlill Town Pit - Craven Co.1 Subject: Re: [Fwd: Spruill Town Pit - Craven Co.] From: Bethany Georgoulias <Bethany.Georgoulias a ncmailnet> Date: Tue, 10 Feb 2009 l 5:50:45 -0500 To: Thom Edgerton <Thom.Edgertorl cr ncmaiLnet> CC: A] I -lodge <ALFlodge a ncmaiLnet>, Danny Smith <Danny.Sliilth U iieiiiSll.ilet>, Bradley Bennett <13radley. Bennett@ncmaiLnet>, Shelton Sullivan <She]ton.Sullivan cr ncmaiLnet>, John Hennessy <.Jolui.l-lennessy a NCMail.net> Gentleman, I talked with Danny Smith about this situation this morning, and it sounds like a big issue is whether US COE would even allow any mining because of the wetlands/stream impacts that already occurred under the former owner... regardless of what DWQ would favor. Al, Danny said he'd give you a call on this one, so maybe he's already spoken to you. I can say that where we are is this (Bradley, please correctly me if I'm wrong): These people need a permit to discharge dewatering wastewater to surface waters, and the only permitting mechanism we have is (a) an individual NPDES permit or (b) the NCG02 permit, which we can't issue without a mining permit. If the discharge is not to surface waters, there may be provision through the 2T rules for it to be permitted by rule; however, given this location, it's probably difficult to convince anyone that the water would not go to surface waters. '2T .0113 (16) references mine dewatering where no chemicals are used. (See here: http://h2o.enr.state.nc._us/admin/rules/documents/2Tbook OOO.pdf) I'm not really sure where to take this next, but you all probably need to get in touch with the Corp before anything else. We'll wait to hear from you, unless you talked about a different approach with Danny. -Bg Thom Edgerton wrote: Hello, Thanks a lot for checking into this. I can get any information that you need from Denise Wilson (252) 524-4702 or feel free to contact her directly. She said that if the site had not been previously disturbed, then the exploration would be done with a drill rig, not requiring the permitting. The way she presented this to me was that Carolina Stone wanted to help get the mess that has been created cleaned up, the right way, if there is still material remaining, and it is not too difficult to get started. Thanks, Thom Thom Edgerton North Carolina Department of Environment & Natural Resources Division of Water Quality Surface Water Protection Section (252) 948-3955 - Office (252) 946-9215 - Fax E-mail correspondence to and from this address may be subject to the North Carolina Public Records Law and may be disclosed to third parties. Bethany Georgoulias wrote: Thom, I've been digging into this more today, but I'm not done yet. I didn't realize 1 of") 2/10/2009 4:01 111\9 Re: [F: vd: Spruill Town Pit - Craven Co.] what a huge and ugly case this had been with Mr. Anderson (owner that went to court) and the extent of the wetlands and stream damage done during his mining operation. I have to get up with Danny Smith since he handled that case when it came through us. I spoke to Judy Wehner today in DLR, and she wasn't sure if what the new company wants to do is something that requires an exploratory mining permit or not (if it's less than an acre, it wouldn't). Apparently Floyd Williams is the one who's handled this site (and the enforcement along with it), so I need to talk to him next. Bottom line is that DWQ does not have the option of issuing a COC for NCG02 to anybody without a valid mining permit from DLR. We just can't do it; the permit references the mining permit directly. Whether we can work with these people who want to explore part of the mine on something like an alternative dewatering arrangement that Al was proposing for the interim (reroute through other ponds & disperse dewatering flow at different location), I'm not sure. If exploration is less than an acre and a mining permit isn't required for this phase anyway, there could be an opportunity .... however, .it's now very clear that I have to talk to the people involved in this case more and maybe even the attorneys. `There could be legal issues hindering that, particularly if there are restraining orders against mining the property that are still in effect. I may not even be the right person to coordinate all of this since a lot of this happened with our compliance staff, but I'll do my best to get the right people talking to you all about it.• -Bg Thom Edgerton wrote: Hello, I just received this revised information of what 1 left with you yesterday. Carolina Stone is interested in being able to do some dewatering to explore prior to fully permitting the site. Please let me know if you need more information. Thanks, Thom Subject: Spruill Town Pit From: Andrew Purifoy <carolinastone3@msn.com> Date: Thu, 5 Feb 2009 15:00:30 -0500 To: Tom Edgerton <thom.edgerton@ncmail.net> To: Tom Edgerton <thom Hello Thom, erton@ncmail.net> We have revised the permit application and here are the maps to show you how we are proposing to route the water. Let me know if this is acceptable and then I will be able to finish the NO1 and get started on the BMP Plans. Thank You, Denise Wilson Carolina Stone ------------------------------------------------------------------------- Windows LiVeTM: Keep your life in sync. See how it works. 2 of') • 2/10/2009 4:01 1'M Central Files: APS SWP 01 /30/09 Permit Number NCG020343 Permit Tracking Slip Program Category Status Project Type NPDES SW Expired New Project Permit Type Mining Activities Stormwater Discharge COC Primary Reviewer tony.evans Version Permit Classification 1.00 COC Permit Contact Affiliation Permitted Flow j% I p Facility 4w'`''" Facility Name Major/Minor Region Anderson Sand & Gravel Minor Washington Location Address 221 Spruill Town Rd Vanceboro County Craven NC 28586 Facility Contact Affiliation Owner Owner Name Owner Type Anderson Sand & Gravel Non -Government Owner Affiliation Gerald Anderson PO Box 548 Bridgeton NC 28519 Dates/Events Scheduled Orig Issue App Received Draft Initiated Issuance Public Notice Issue Effective Expiration 10/28/96 05/15/96 07/22/96 10/28/96 10/28/96 08/31/97 Regulated. Activities ^ RequestedlReceived Events Mine dewatering RO staff report requested 05/31/96 Mining & material processing RO staff report received 06/28/96 Mining closed loop recycle system Vehicle maintenance Outfall 001 Waterbody Name Stream Index Number Current Class Subbasin Bear Branch 27-97-7 C;Sw,NSW 03-04-09 0 Carolina Stone, LLC. 5591 NC Highway 118 Phone: 252-524-4702 Grlfton, NC 28530 Fax: 252-524-S207 Ernall: carolinastone3@msn.com Fax Cover Sheet Ni43 f +7 4 Attention: Company: Fax #: ()�/k - 9V/J- Date: Total pages: 6 Comments: \� 29tog AA Mc_ C(a.:.-, _,., -, -A Division of Water Quality /Surface Water Protection NCDENRNational Pollutant Discharge Elimination System wc..,� C•ncv.u+. [r...rurh �.. ('1 G�j(1 j� r.vs.wu.rr ym /IQLR4 Mas,w:m NCO20000 NOTICE OF INTENT National Pollutant Discharge Elimination System application for coverage under General Permit NCG020000: STORMWATER DISCHARGES associated with activities classified as: SIC (Standard industrial Classification) Code - 14XX Mineral Mining Industry (except as specified below) The following activities are also included: • Active or inactive mining operations (including borrow pits —except for NCDOT borrow pits) that discharge stormwater contaminated with or that has come in contact with, any overburden, raw material, intermediate products, finished products, byproducts or waste products located on the site of such operations; • Stormwater from vehicle maintenance activities at mining operations; Overflow from facilities that recycle process wastewater; and/or Mine dewatering (wastewater) The following activities are specifically excluded from coverage under this General Permit: Stormwater discharges associated with peat mining, coal mining, and metal mining; Stormwater discharges from mining operations which are intermixed on site with stormwater from asphalt operations and/or concrete operations; • Stormwater discharges associated with oil and gas extraction operations; and • Stormwater discharges associated with tourist gem mines • NCDOT borrow pits are covered under NCS0001 So The following discharges are covered by NPI)ES general permit „NCG520000 Instead of NCG020000: • Point source discharges of stormwater and wastewater from in -stream sand ruining operations (i.e., sand dredging or dipping operations) For new mining sites that require an authorization to construct (ATC) wastewater treatment facilities; This NOI is also an APPLICATION FOR an ATC for new wastewater treatment facilities. ATC requests must be submitted at least 90 days prior to construction'. For exlsflnq mining sites that require an Authorization to Operate (A TO) wastewater treatment facilities_ This NOI Is also an APPLICATION FOR an ATO for wastewater treatment facilities In place. Construction modest ation or Installation of anY new treatment components at an existing site requires an ATC. (if the site is already covered by NCG020000, the ATC request may be submitted without an NOI). Some wastewater treatment facilities used to treat or recycle process wastewater (even if commingled with stormwater) at mining sites will require an ATC prior to construction per 15A NCAC 2l-i .0138. Please see the NCGO20000 General Permit for details about which treatment facilities require an ATC (summarized in Table 1 at the end of this form). For example, an ATC is required for treatment of mine dewatering discharge from clay pits and non -closed -loop wastewater recycle systems. The authorization to construct or continue to operate will be issued at the same time as the Certificate of Coverage (COO for the NCG02 permit. Design of treatment facilities must comply with requirements of 15A NCAC 2H .0138 & .0139. Page 1 of 7 `As per 15A NCAC 2w .0106 'Unless treatment faclllllas arc designad, constructed, and put Into operation by employees internal to the company who are qualified to perform surh work for their respective companies in accordance with General Stattates, 89C-25 (7), plans and specifications must be signed and sealed by a P.E. SWU•217.071408 Last revised 7/1Q08 NCG020000 N.O.I. Construction of wastewater treatment facilities subject to the AMATO requirements in the NCG02 permit at new or existing mining sites requires submisslon of three (3) sets of plans and specifications signed and sealed by a Professional Engineer (P.E.) or qualified staff 2 along with this application. A copy of the design calculations should be included. Please see questions 18 & 19. Table 1: Wastewater Permit ATCIATO Requirements Yes No Quarries -- • Sand Pits --- 16 Clay pits 6 _ Any Dewatering with Chemical Treatment 4 — Sand/Gravel — • Closed -Loop Recycle — Other Recycle _ For questions, please contact the OWQ Regional Office for your area. (See page 7) (Please print or type) 1) Mailing address of ownerloperator (address to which all permit correspondence will mailed): Name n it PUri YrQ _ Street Address AI,'-. Alw�_ City '&n TT __ State `ZIP Code ;?gS30_ Telephone No. Fax: 5.7 _:Y E-mail Address rd i no-s4- one- B 62In s n- C urn 2) Location of facility producing discharge: Facility Name - Facility Contact Street Address City County Telephone No, Contact E-mail 3) Physlcal Location Information: Niglio! 21M rtar-lF-7•i � Please provide a narrative description of how to get to the facility (use street names, state road numbers, and distance and direction from a roadway intersection).'/ fake- 4► V- /'7 �u'i~f'1� -(torn - r�e 3 m; le s _; Ju c c, �i q ter► � DL4L��.11?S�1L1.. � n+. Q Cf'r �.-1 TA i S +1�, m i l e 1) ri j !� 4) Latitude ,3J , 1S S (Q Longitude-7% Db ,_5� (degrees, minutes, seconds) 5) This NPDES Permit NOI Application applies to which of the following: ❑ New or Proposed Facility Date operation is to begin,,,,,._._. Existing ❑ New Permit not applicable — ATC request only. NPIDES Permit Number Page 2 of 7 Last raMted 7lt4108 SW U-217-0714Q8 NCG020000 N.O.L 6) Standard Industrial Classification: Provide the 4 digit Standard Industrial Classification Code (SIC Code) that describes the primary Industrial activity at this facility SIC Code: I - 7) Provide a narrative description of the types of minerals mined at this factlity: L' Me s f�r�G 8) Discharge Points: Number of discharge points (ditches, pipes, channels, etc. that convey discharges from the property)-, Stormwater Mine dewatering: _V!f Process Wastewater Overflow: Discharge points should be clearly marked on the submitted site plan - Please provide short narrative description of dischar es: 1 Chat l n+o 2,4244r 1?>r4 t:�r W 61 BA A S i n fn �Sa, J f- Crile. 9) Receiving waters: What is the name of the body or bodies of water (creek, stream, river, lake, etc.) that the facility stormwater and/or wastewater discharges end up in? �51,�_I_ i Cue- k 11 the site stormwater discharges to a separate storm sewer system, name the operator of the separate storm sewer system (e.g. City of Raleigh municipal storm sewer). Receiving water classification (if known): Note: Discharge of process wastewater to receiving waters classified as WS-n to WS-V or SA must be approved by the N.C. Dept. of Environmental Health. 11 DEH does not approve, coverage under NCG020000 cannot be granted. No new discharges of process wastewater are permitted In receiving waters classified as WS-1 or freshwater ORW. 10) Will mining operations require dewatering near wetlands or Impact any stream, groundwater, or wetlands? C7 No '*9 Yes If yes, please provide information about any 404/401 Certification permits. Note: Wetlands must be CLEARLY DELINEATED on the site plan. Mine dewatering activities that have the potential to drain wetlands or otherwise impact surface water or groundwater MUST develop and Implement an operation and Monitoring (O&M) Plan that has been approved by the Division. The O&M Plan should be submitted to the Regional Office and most be_ approved prior to operation. The plan shall include, but is not limited to: (1) Groundwater monitoring strategies to demonstrate the effect of pumping and to establish any pumping regime necessary to reduce impacts, and (2) Detailed plans to maintain surrounding hydrology and reseective monitoring to demonstrate compliance. 11) Does this facility already have a valid Mining Permit from the Division of Land Resources (DLR)? No (If not, please indicate the status of the Mining Permit application: Il Yes If yes, please provide the Mining Permit number and include a copy with your application: Note: DWO cannot Issue a COG for the AfCG020000 General Permit until a Mining Permit Is Issued or renewed by the Division of Land Resources (DLR). Page 3 of 7 SWU-217-07140$ Last revised 7/14/08 NCO020000 N.O.I. 12) Will this mining operation precede development activities at this site? No ❑ Yes 13) Does this facility have any other NPDES permits? 1No Yes It yes, list the permit numbers for all current NPDES permits for this facility: 0 3 14) Does this facility have any Non -Discharge permits (ex: recycle permits)? No ❑ Yes If yes, list the permit numbers for all current Non -Discharge permits for this facility: 15) Does this facility employ any best management practices for stormwater control? ❑ No 0 Yes It yes, please briefly describe: 16) does this facility have a Stormwater Pollution Prevention Plan? ❑ No O Yes ff yes, when was it Implemented? 17) Will vehicle maintenance activities occur at this facility? XNo ❑ Yes Wastewater Treatment Facilitles: 18) Will mine dewatering discharges occur? (AMATO required for clay pits or dewatering with chem. treatment) ❑ No XYes 19) Will discharges of overflows from process wastewater treatment systems occur? (ATC or ATO required, unless sand/gravel mining or closed -loop recycle system) No ❑ Yes If yes, answer the following questions on the wastewater treatment system: a. Please describe the type of process used to treat and/or recycle the process wastewater. Give design specifics (i.e. design volume, retention time, surface area, etc.). Existing treatment facilities should be descr;bed in detail, and design criteria or operational data should be provided (Including calculations) to ensure that the facility can comply with requirements of the General Permit. ]Use separate sheet(s)] b. Does this facility employ chemical additives to flocculate suspended solids? ❑ No © Yes If yes, please state the name, manufacturer and the quantity of averago dally usage of the chemical additive Note: Please see http:/lh2o.enr.state...r_c-esLxLPAM� list htm for a list of approved pplyacrylamide (t'AMS) products for use in North Carolina, Page 4 of 7 SW U•217.071408 Last revised 7/14/OS NCO020000 N.O.I. C. Does this facility overflow only during rainfall events exceeding the 10-yr, 24-hr rainfall event? ❑ No ❑ Yes 20) Are wastewater treament facilities (including recycle systems) planned in the 100-year flood plain? No ❑ Yes If so, Include information to demonstrate protection from flooding. (Minimum design equirements for treatment works include protection from the 100-year flood, per 15A NCAC 2H .0219.) 21) Hazardous Waste: of Is this facility a Hazardous Waste Treatment, Storage, or Disposal Facility? No ❑ Yes b) Is this facility a Small Quantity Generator (less than 1000 kg. of hazardous waste generated per month) of hazardous waste? XNo ❑ Yes c) Is this facility a Large Quantity Generator (1000 kg, or more of hazardous waste generated per month) of hazardous waste? No ❑ Yes d) If you answered yes to questions b. or c., please provide the following information: Type(s) of waste: How Is'material stored: Where is material stored: How many disposal shipments per year. - Name of transport 1 disposal vendor: Vendor address: 22) Certification: North Carolina General Statute 143-215.6 b (i) provides that: Any person who knowingly makes any false statement, representatlon, or certification in any application, record, report, plan, or other document filed or required to be maintained under this Article or a rule Implementing this Article; or who knowingly makes a !also statement of a material fact In a rulemaking proceeding or contested case under this Article; or who falsifies, tampers with, or knowingly renders Inacovrate any recording or monitoring device or method required to lb� operated or maintalned under this Artlde or rules of the jEnvironmental Management] Commission implementing this Article shall be guilty of a Class 2 misdemeanor wh[ch may include a fine not to exceed ten thousand dollars ($IO.Wo). 1 hereby request coverage under the referenced General Permit. I understand that coverage under this permit will constitute the permit requirements for the discharge(s) and Is enforceable in the same manner as an Individual permit. I agree to abide by the following as a part of coverage under this General Permit: 1. I agree to abide by the approved Mining Permit for this mining activity. (A copy of the valid mining permit must be attached to this request- 2. 1 agree to not discharge any sanitary wastewater from this mining activity except under the provisions of another NPDES permit specifically issued therefore. 3. 1 agree that bulk storage of petroleum products and other chemicals shall have adequate protection so as to contain all spills on the site. 4, 1 agree that solid wastes will be disposed of in accordance with N-C. statutes and rules governing solid waste disposal- 5. 1 agree that maintenance activities for vehicles and heavy equipment will be performed so as to not result in contamination of the surface or ground waters. Page 5 of 7 5wU-217-071408 Last revised 7114/08 NCG020000 N.O.I. I agree to abide by the provisions as listed above and recognize that the provisions are to be considered as enforceable requlrements of the General Permit. I certify that I am familiar with the information contained in this application and that to the best of my knowledge and belief such information is true, complete, and accurate. Printed Name of Per on Signing: A 1 A n utSSe,, l Title: r,,.)r]2r• /vlA�^ P_r I -, _k IF?f - [� (Signature of Applicant) (Date signed) Notice of Intent must be accompanied by a check or money order for $100.00 made payable to NCDENR. Final Checkllst This application will be returned as incomplete unless all of the following Items have been included: 0 Check for $100 made payable to NCDENR hJ This completed application and all supporting documents Cl Copy of the valid approved mining permit (MP) for the facility or indication of MP application status ❑ Copy of a county map or other general location map that shows the mining site and nearest major roads ❑ Copy of USGS topographic map showing the mining site and surrounding areas, or other map that clearly shows site location in relation to nearby streams, wetlands, and other waters, etc, b Copy of mining site plan with all wetlands clearly delineated ❑ If the mine is near wetlands, or may otherwise impact surface water or groundwater, contact the regional office about an O&M Plan (contact information on the next page). Please refer to this O&M Plan checklist: ✓ Site map with wetlands, ditches, well -placements, borrow areas, overburden storage, stormwater controlsiBMPs, vehicle maintenance areas, settling basins, product process areas, and access roads_ ✓ Well information (design, depths, maintenance) ✓ Physical monitoring for the wetlands areas ✓ Settling pond sizing information, if applicable ✓ Level spreader design, it applicable ✓ Details about dewatering method r Description of measures to prevent erosion and flooding 0 If an ATC or ATO is required, three (3) sets of plans, specifications, and design calculations, signed, sealed, and dated by a P.E. ATC and ATO requirements in NCG02000 are summarized in Table 1 on Page 2 of this NOI (see the permit text for more details), Plans shall show all pertinent design features, including the location of the outfalf(s). If stormwater is flowing off -site, the plan must show that stormwater will not be mixed with wastewater, Mail the entire package to: Stormwater and General Permits Unit Division of Water quality 1617 Mall Service Center Raleigh, North Carolina 27699-1617 Not The submission of this document does not guarantee the Issuance of an Nil permit. Page 6 of 7 SWU.217.071408 Lest revised 711410s i I � J4b I I i i JJ� I vr,4 1 Page 1 of 1 I %I' N O O Y BRICK dis�hpr(34z, ow+G411 Ihttp://gismaps.cravencounty.com/output/craven_ GISMAPS2832342448536.png 1/20/2009 • Send To Printer Back To Terra5erver Change to 11x17 Print Size Show Grid Lines Change to Landscape XUM 5 krn E of Cowpen Landing, North Carolina, United States 01 Jul 1983 ^' '1Km Q' '.5Mi Image Courtesy of the U.S. Geological Survey rc�) 2004 Microsoft Corporation. Terms of Use Privacy Statement http://terraserver-usa.com/Printimage.aspx9T=2&S= 13&Z-18&X=192&Y=2439&W=1 &qs=spruill ttown... 2/5/2009 ROY COOPER ATTORNEY GENERAL Ms. Lois C. Thomas 1617 Mail Service -Center Raleigh, -NC 27699-1617 State of North Carolina Department of Justice PO Box 629 Raleigh, North Carolina 27602 December 31, 2008 REPLY TO: Brenda M enard Environmental Division bmenard@ncdoj.gov Telephone: 919/716-6600 Fax: 919n 16-6766 RE: Anderson Sand & Gravel LLC Gerald L. Anderson LLC, and. Gerald Anderson_v. N.C. Department of Environment and Natural Resources, Division of Water ualit , Office of Administrative Hearings Case No. OS EHR 1787 Dear Ms. Thomas: Enclosed please fired Respondent's Written Exceptions in the case referenced above. Respondent is requesting oral argument on March 12, 2009. Thank you for your time and attention to this matter. Sincerely, C-1R � � 1 Brenda Menard 17r� Assistant Attorney General Ici Enclosure — --�- cc: Anderson Sand & Gravel, LLC Gerald L. Anderson, LLC Gerald L. Anderson tin Hennessy, DENR/DWQ File ��� STATE OF NORTH CAROLINA COUNTY OF CRAVEN Anderson Sand & Gravel LLC, Gerald L. Anderson LLC, and Gerald Anderson, Petitioners, V. N.C. Department of Environment and Natural Resources, Division of Water Quality, Respondent. 1N THE OFFICE OF ADMINISTRATWE HEARINGS 05 EHR 1787 RESPONDENT'S WRITTEN EXCEPTIONS NOW COMES RESPONDENT, by and through counsel, and requests that the Final Agency Decision Maker adopt the Decision of the Administrative Law Judge ("ALF) upholding Respondent's civil penalty assessment against Petitioners, but reject paragraph 16 of the ALJ's Conclusions of Law. In support of this position, Respondent makes the following written exceptions. WRITTEN EXCEPTIONS Respondent excepts to paragraph 16 of the ALJ's Conclusions of Law. Respondent otherwise agrees with the ALJ's Findings of Fact, Conclusions of Law and Decision upholding the civil penalty assessment in full. ARGUMENT I. PARAGRAPH 16 OF THE ALJ'S CONCLUSIONS OF LAW CONTAINS A MISQUOTE OF A STATUTE AND SHOULD BE AMENDED TO CORRECTLY QUOTE THE STATUTE Paragraph 16 of the ALJ's Conclusions of Law misquotes N.C. Gen. Stat. § 55-14-22(c) as stating "as if the administrative dissolution never had occurred," when the statute instead states "as if the administrative dissolution had never occurred.",... CONCLUSION The ALJ's Conclusions of Law should be amended to reflect the correct quotation of N.C. Gen. Stat. § 55-14-22(c). The amended Paragraph 16 of the Conclusions of Law should state: When a dissolved corporation is reinstated, the corporation continues its activities as if the dissolution never had occurred. N.C. Gen. Stat. § 55-14-22(c). The reinstatement "relates back to and takes effect as of the date of the administrative dissolution and the corporation resumes carrying on its business as if the administrative dissolution had never occurred, subject to the rights of any person who reasonably relied to, his prejudice upon the certificate of dissolution." Id. Therefore, any liabilities incurred by the corporation after the date of the administrative dissolution remain liabilities of the corporation once it has been reinstated. The remainder of the Decision should remain unchanged. In addition to the exceptions and arguments contained herein, Respondent has incorporated its written exceptions in its Proposed Final Agency Decision attached hereto. Respondent requests oral argument. This the 31 st day of December, 2008. ROY COOPER Attorney General r - d. E. Menard Assistant Attorney General NC Department of Justice Environmental Division 9001 Mail Service Center Raleigh, NC 27699-9001 2 CERTIFICATE OF SERVICE I do hereby certify that a copy of the foregoing Respondent's Written Exceptions and Argument with attached Proposed Final Agency Decision has been served upon the Final Agency Decision maker and on the Petitioners by depositing a copy in the US -Mail, postage prepaid, addressed as follows: Ms. Lois C. Thomas 1617 Mail Service Center Raleigh, NC 27699-1617 Anderson Sand and Gravel LLC Gerald L. Anderson PO Box 568 Bridgeton, NC 28519 Gerald L. Anderson 1817 Frank Avenue Bridgeton, NC 28519 Gerald L. Anderson, LLC 1306 Highway 17 North Bridgeton, NC 28519 This the 31 st day of December, 2008. Brenda E. Menard Assistant Attorney General K3 STATE OF NORTH CAROLINA COUNTY OF CRAVEN Anderson Sand & Gravel LLC, Gerald L. Anderson LLC, and Gerald Anderson, Petitioner, V. N.C. Department of Environment and Natural Resources, Division of Water Quality, IN THE OFFICE OF ADMINISTRATIVE HEARINGS 05 ERR 1787 DECISION This matter was heard before Administrative Law Judge Beecher R. Gray on Monday, July 28, 2008 in New Bern, North Carolina. The case involved the appeal of a civil penalty assessment. Respondent assessed Petitioners in the amount of $44,933.84 for violations of N.C. Gen. Stat. § 143-215.1, 15A N.C. Admin. Code 2B.0211(2), 15A N.C. Admin. Code 2B.0233(4), 15A N.C. Admin. Code 213.0231(a)(1) and (b)(1), 15A N.C. Admin. Code 2H.0501, and 15A N.C. Admin. Code 2H.0501. Respondent submitted a proposed decision on October 03, 2008. Petitioner has not filed a response. For Petitioner: Petitioners appeared pro se in this matter APPEARANCES ISSUES For Respondent: Brenda E. Menard Associate Attorney General N. C. Department of Justice Environmental Division 9001 Mail Service Center Raleigh, NC 27699-9001 . 1. Whether Petitioners meet their burden of proof in establishing that Respondent erred in determining that a stream existed on the Spruill Town Mine site ("Site") for purposes of the Neuse River Basin Riparian Buffer rule, 15A N.C. Admin. Code 213.0233, and the applicable Water Quality Standards rule, 15A N.C. Admin. Code 2B.0211. 2. Whether Petitioners met their burden of proof in establishing that Respondent erred in assessing $44,933.84 in civil penalties on October 28, 2005 against Petitioner for violations of N.C. Gen. Stat. § 143-215.1, 15A N.C. Admin. Code 2B.0211(2), 15A N.C. Admin. -1- Code 2B.0233(4), 15A N.C. Admin. Code 2B.0231(a)(1) and (b)(1), 15A N.C. Admin. Code 2H.0501, and 15A N.C. Admin. Code 2H.0501. STATUTES AND RULES N.C. Gen. Stat §§ 143-215.1 N.C. Admin. Code, Title 15A, Chapter 2B N.C. Admin. Code, Title 15A, Chapter 2H EXHIBITS RECEIVED INTO EVIDENCE PETITIONER: RESPONDENT: 1 Corporation Information for Anderson Sand & Gravel, LLC 07-29-96 Annual Report showing date of organization 04-02-96 06-12-03 Certificate of Dissolution 2 Corporation Information for Gerald L. Anderson, LLC 02-04-98 Annual Report showing date of organization 03-25-94 04-05-05 Certificate of Dissolution 02-07-06 Application for Reinstatement 3 05-26-95 Certificate of Coverage under General Permit No: NCG020000 4 04-16-96 Site Plan - Spruill Town Mine 5 09-23-96 Letter from Division of Land Resources Approving Modification of Mining Permit per 04-16-96 Site Plan, with enclosed Permit for Operation of a Mining Activity 6 12-17-99 Reissue- NPDES Stormwater Permit, Gerald Anderson LLC Certificate of Coverage No: NCG020300 7b 03-23-00 Borrow Pit Overall Site Map with Markings Showing Addition 9 07-14-04 Letter from DWQ Informing Permittee of Requirement to Renew NPDES Stormwater Permit Coverage 10 01-21-05 Notice of Violations of Mining Permit To: Mr. Gerald Anderson/Anderson Sand & Gravel, LLC From: Division of Land Resources - 2 - 12 United States Geologic Survey Quadrangle Topographic Map of Spruill Town Mine Site and Surrounding Area 13 02-10-05 PHOTOS: Clearing of Wetland area that plan indicates to retrain as wooded Active discharge without NPDES Permit Expanded mine boundary into wetland of Bear Creek 14 02-17-05 Cease & Desist Letter to Gerald Anderson/Anderson Sand & Gravel, LLC from Army Corps of Engineers 15 03-10-05 PHOTOS: View at point "A" GPS pt. Crossing over stream feature View at point `B" GPS pt. No boards in riser. Pump discharge 20 ft from riser View at point "C" GPS pt. view of where stream should be located View at point "D" 16 03-16-05 Letter to Mr. Gerald Anderson from Department of the Army 17 04-25-05 Notice of Violation and Notice of Enforcement Recommendation To: James K. Spruill, Vanceboro, NC . and Gerald Anderson, Bridgeton, NC From: Division of Water Quality 18 08-05-05 PHOTOS: Active excavation in wetlands Active mining without permits Expanded mine boundary into wetlands of Bear Creek Dewatering without an NPDES Permit. No boards in riser 19 09-30-05 Assessment of Civil Penalties Mr. James K. Spruill, Anderson Sand and Gravel, LLC Gerald L. Anderson, LLC, and Mr. Gerald Anderson Anderson Mine Site/Spruill Town Mine DV 2005-0023 09-30-05 Assessment Factors Form 20 10-28-05 Rescission and Replacement of Assessment of Civil Penalties Mr. James K. Spruill, Anderson Sand and Gravel, LLC Gerald L. Anderson, LLC, and Mr. Gerald Anderson Anderson Mine Site/Spruill Town Mine DV 2005-0027 10-28-05 Assessment Factors Form 21 07-03-07 Rescission of Civil Penalties DV 2005-0027 against James K. Spruill, Billie C. Spruill, and Pierce Landing Subdivision - 3 - 22 12-03-07 Permanent Injunction in 05 CVS 2047 23 Resume of Danny Smith 24 Resume of Kyle Barnes Based upon careful consideration of the testimony and evidence received during the contested case hearing as well as the entire record of this proceeding, the undersigned makes the following: FINDINGS OF FACT 1. . The parties received notice of hearing by certified mail more than 15 days prior to the hearing and each stipulated on the record that notice was proper. 2. Petitioner Gerald Anderson is a citizen of the State of North Carolina and a resident of Craven County, North Carolina. 3. Gerald Anderson was a member/manager of Petitioner Anderson Sand & Gravel, LLC in Craven County, North Carolina. (Respondent's Exhibit 1) Anderson Sand & Gravel, LLC administratively was dissolved under N.C. Gen. Stat. § 57C-6-03 on June 12, 2003. (Respondent's Exhibit 1) Mr. Anderson testified at the hearing on this matter that he was aware of the dissolution. (T pp 17-18) 4. Gerald Anderson is a member/manager of Petitioner Gerald L. Anderson, LLC. (Respondent's Exhibit 2) Gerald L. Anderson, LLC administratively was dissolved under N.C. Gen. Stat. § 57C-6-03 on April 5, 2005. (Respondent's Exhibit 2) Gerald L. Anderson, LLC later was reinstated. (Respondent's Exhibit 2) 5. Respondent Department of Environmental Resources ("DENR") is a State agency established under the provisions of N.C. Gen. Stat. § 143B-279.1 et seq. and vested with the authority to enforce the State's environmental pollution laws, including laws enacted to protect the water quality of the State. The Division of Water Quality ("DWQ") is a division within DENR and all actions taken by DWQ are actions of Respondent. 6. In 1996, DENR's Division of Land Resources ("DLR") transferred a permit to Anderson Sand & Gravel, LLC, allowing it to conduct mining operations at the Spruill Town Mining Site (Site). (Respondent's Exhibit 5) In 2005, Anderson Sand & Gravel, LLC was leasing the Site and held the mining rights to that property. (T p 18) Those mining rights never were transferred. (T p 18) The mining permit issued .by the Division of Land Resources also was not transferred before the date of the civil penalty assessment at issue. (T p 25) 7. DWQ issued a certificate of coverage under a stormwater general permit allowing Gerald L. Anderson, LLC to discharge stormwater, process wastewater, -and wastewater - 4 - associated with mine dewatering to an unnamed tributary of Swift Creek in the Neuse River Basin. (Respondent's Exhibit 3) On December 17, 1999, DWQ issued a renewed certificate of coverage to Gerald L. Anderson, LLC. (Respondent's Exhibit 6) 8. By letter dated July 14, 2004, DWQ notified Petitioner Gerald L. Anderson, LLC that its coverage under the stormwater general pen -nit would expire on November 30, 2004. (Respondent's Exhibit 9) Petitioner did not renew the certificate of coverage. (T p 60) 9. The Site is located in the Neuse River Basin. (T p 96) 10. Kyle Barnes, an Environmental Senior Specialist with DENR's Washington Regional Office staff, conducted a stream determination in 2006. (T p 84) This stream determination. was conducted in order to evaluate" whether a stream existed for purposes of DENR's statutes and regulations upstream of the Site. (T p 84) Mr. Barnes verified the existence of a perennial stream upstream of the Site, ending at the point where a "ditch" is shown on Petitioner Anderson Sand & Gravel, LLC's mining map submitted in March 2000. (Respondent's Exhibit 7b; T p 84) Mr. Barnes testified at the hearing on this matter that if a perennial stream' exists upstream, a perennial stream naturally would exist downstream as- well. (T p 85) 11. A stream is shown running through the Site on the most recent version of the 1:24,000 scale (7.5 minute) quadrangle topographic maps prepared by the United States Geologic Survey ("USGS"), in approximately the same location as the feature labeled "ditch" on the miring map provided by Anderson Sand & Gravel, LLC in March of 2000. (Respondent's Exhibit 7b; T pp 98-99) 12. In 1996, Petitioner Anderson Sand & Gravel, LLC submitted a mining map in its application for modification and transfer of the mining. permit for. the Site. (Respondent's Exhibit 5; T pp 20-21) This mining map showed a buffer surrounding the line labeled as a "ditch" running along the edge of the permitted mining area. (Respondent's Exhibit 5) 13. According to Mr. Barnes' estimation, approximately 1800 linear feet of stream had been excavated at the time of his site visits in 2005. (T p 95) Excavation of a stream destroys the natural aquatic habitat of that stream. (T p 96) 14. Mr. Barnes testified at the hearing on this matter that when he visited the Site in 2005, there was no vegetation in the fifty -foot area on both sides of the location where the stream would have been according to the USGS map. (T p 99) 15. During his inspections of the. Site in 2005, Mr. Barnes witnessed discharges of mine pit water. (Respondent's Exhibits 13 and 18; T p 88-89, 108-109) No permit for such discharges was held by Petitioners at the time of those discharges. (T p 89, 109) 16. Anderson Sand & Gravel, LLC submitted a mining map entitled "Borrow Pit Overall Site" to the Division of Land Resources in March of 2000 showing wetlands surrounding the permitted mining area at the Site. (Respondent's Exhibit 7b; T pp 27-28) - 5 - 17. The Army Corps of Engineers issued cease and desist letters to Petitioners on February 17, 2005 and March 16, 2005 indicating that wetlands existed at the' Site. (Respondent's Exhibits 14 and 16) 18. Mr. Barnes witnessed fill of wetlands during his site visits in 2005 (Respondent's Exhibits 13 and 18; T pp 90, 108) Mr. Barnes testified at the hearing on this matter that the fill of wetlands would have required a 401 Water Quality Certification. (T p 90) No 401 Water Quality Certification was issued for this Site. (T p 90) Mr. Barnes also testified that this fill also constituted a wetland standards violation under 15A N.C. Admin. Code 2B.0231. (T p 108) 19. Tom Reeder, the former Deputy Director of DWQ, was delegated authority to. assess the civil penalty at issue. (T p 116) Before assessing the civil penalty at issue, Mr. Reeder considered all the factors listed in N.C. Gen. Stat. § 143-282.1(b). (Respondent's Exhibit 20; T p 119) 20. In his position as Deputy Director of DWQ, Mr. Reeder assessed approximately one hundred fifty (150) to two hundred (200) non -point source cases, including wetlands violations, buffer violations, and violations for impacts to streams without 401 Certification. (T p 121-123) .In Mr. Reeder's evaluation of the civil penalty at issue in this contested case, the underlying .violations were among the most egregious violations for which he had assessed penalties during his time with DWQ, and the civil penalty assessed was consistent with other assessments made by Mr. Reeder during his time with DWQ. (T pp 121-122) 21. Under 15A N.C. Admin. Code 2B.0211, fresh surface waters in the State "shall be suitable for aquatic, life propagation and maintenance of biological integrity, wildlife, secondary recreation, and agriculture. Sources of water pollution which preclude any of these uses on either a short-term or long-term basis shall be considered to be violating a water quality standard." 22. A vegetated buffer spanning 50 feet must be maintained adjacent to surface waters in the Neuse River Basin underl5A N.C. Admin. Code 2B.0233. For purposes of this buffer rule, a surface water is "present if the feature is approximately shown on either the most recent version of the soil survey map prepared by the Natural Resources Conservation Service of the United States Department of Agriculture or the most recent version of the 1:24,000 scale (7.5 minute) quadrangle topographic maps prepared by the United States Geologic Suivey." 23. . Under 15A N.C. Admin. Code 2B.0231(a), wetlands in the State shall be suitable for uses such as "[s]torm and flood water storage and retention and the moderation of extreme water level fluctuations." In order to ensure that wetlands in the State are suitable for such uses, "[1]iquids, fill or other solids or dissolved gases may not be present in amounts which may cause adverse impacts on existing wetland uses," under 15A N.C. Admin. Code 2B.0231(b). - 6 - CONCLUSIONS OF LAW 1. All parties properly are before the Office of Administrative Hearings, and the Office of Administrative Hearings has jurisdiction over both the parties and the subject matter. 2. All parties correctly have been designated, and there is no question as to misjoinder or nonjoinder of parties. 3. Petitioners are "persons" within the meaning of N.C. Gen. Stat. § 143-215.6A pursuant to N.C. Gen. Stat. § 143-212(4). 4. A permit is required to discharge waste or stormwater to waters of the State pursuant to N.C. Gen. Stat. § 143-215.1(a). 5. Waters of the State existed on the Site. Petitioners violated N.C. Gen. Stat. § .143- 215.1 by discharging wastewater and stormwater to those waters without a permit in 2005. 6. Fresh surface waters existed at the Site. Petitioners violated 15A N.C. Admin. Code 2B.0211 by excavating 1850 linear feet of stream, thereby removing the use of those waters. 7. Surface waters existed at this site for the purposes of 15A N.C. Admin. Code 2B.0233, since the Site is located within the Neuse River Basin and a stream feature was shown at the Site on the most recent version of the 1:24,000 scale (7.5 minute) quadrangle topographic maps prepared by the United States Geologic Survey. 8. Petitioners violated 15A N.C. Admin_ Code 2B.0233 by removing the vegetated buffer beside the surface waters present on the Site. 9. Wetlands existed on the Site as shown on Petitioner Anderson Sand & Gravel's map entitled `Borrow Pit Overall Site," submitted in March of 2000. These wetlands constitute waters of the State pursuant to N.C. Gen. Stat. § 143-212(6). 10.. Petitioners violated 15A NCAC 2B.0231 by causing "fills and other solids" to be present in amounts that would "cause adverse impacts on existing wetland uses." 11. A 401 Water Quality Certification is required to discharge dredged or fill material to wetlands in the State under 15A N.C. Admin. Code 2H.0501 and 2H.0502. 12. Petitioners violated 15A N.C. Admin. Code 2H.0501 and 2H.0502 by causing discharges of dredged or fill material to wetlands without first obtaining a 401 Water Quality Certification. 13. Respondent properly assessed Petitioners for $44,933.84. The assessment was appropriate in amount because of the violations at the Site. - 7 - 14. Under North Carolina law, dissolved corporations are prohibited from conducting any business other than that appropriate to winding up their affairs and liquidating their assets. N.C. Gen. Stat. § 55-14-05(a). In Guilford Builders Supply Co. v. Reynolds, 249 N.C. 612, 61, 107 S.E.2d 80, 83. (1959), the North Carolina Supreme Court stated: Under certain circumstances, stockholders, officers and directors may be held liable as individuals or partners when such stockholders, officers and directors permit the charter of the corporation to expire, and continue to obtain credit for and on behalf of a purported but non-existent corporation. In the similar context of a corporation with a suspended charter due to non-payment of taxes, the North Carolina Court of Appeals.stated: The general rule is that the shareholders of a corporation whose charter has been suspended "are not made individually liable for its debts incurred during the suspension" .... On the other hand, directors and officers are personally liable for corporate obligations incurred by them on behalf of the corporation, or by others with their acquiescence, if at that time they were aware that the corporate charter was suspended. Charles A. Torrence Co. v. Clary, 121 N.C. App. 211, 213, 464 S.E.2d 502, 504 (N.C. Ct.. App. 1995) (citations omitted). 15. Mr. Anderson continued to carry on business in the name of Anderson Sand & Gravel, LLC, by continuing to conduct mining operations at the Site .under a mining permit issued by the Division of Land Resources and using mining rights held by Anderson Sand & Gravel, LLC. Mr. Anderson was aware of the dissolution of Anderson Sand & Gravel, LLC, but failed to wind up the affairs of the business. Instead, Mr. Anderson continued to benefit from activities undertaken on behalf of the dissolved corporation. Therefore, Mr. Anderson assumed personal responsibility for the liabilities incurred in the name of Anderson Sand & Gravel, LLC after its dissolution on June 12, 2003. Anderson Sand & Gravel, LLC also may be liable for violations that occurred before the date of its dissolution. 16. When a dissolved corporation is reinstated, the corporation continues its activities as if the dissolution never had occurred. N.C. Gen. Stat. § 55-14-22(c). The reinstatement "relates back to and takes' effect as of the date of the administrative dissolution and the corporation resumes carrying on its business as if the administrative dissolution had never occurred, subject to the rights of any person who reasonably relied to his prejudice upon the certificate of dissolution." Id. Therefore, any liabilities incurred by the corporation after the date of the administrative dissolution remain liabilities of the corporation once it has been reinstated. 17. Gerald L. Anderson, LLC administratively was dissolved, but later was reinstated. Under N.C. Gen. Stat. § 55714-22, a reinstated corporation continues its activities as if it never were dissolved. Therefore, Gerald L. Anderson, LLC retains any liabilities that it incurred, regardless of the date on which they were incurred. 1 Based on the foregoing Findings of Fact and Conclusions of Law, the undersigned makes the following: PROPOSED DECISION The Environmental Management Commission should uphold the decision to assess a civil penalty against Petitioners for violations of the State's water pollution laws in the amount of $44,933.84. NOTICE The Environmental Management Commission, the agency making the final decision in this contested case, is required to give each party an opportunity to file exceptions to this recommended decision and to present written arguments to those in the agency who will make the final decision. N.C. Gen. Stat. § 150B-36(a). The Environmental Management Commission is required by N.C. Gen. Stat. § 150B- 36(b3) to serve a copy of the final decision on all parties and to the Office of Administrative Hearings. This the day of , 2009. David H. Moreau, Chairman Environmental Management Commission - 9 - 2. State of NOYH-1 Carolina ti Depart mellt. of Justice IMY ctx�I��t_f� fORXI:1' P0 BC)S 629 Reply to: , Raleigh, No"ill Carolina Brenda E. Mcnard Environmental Division 27602 Water & Land Section Tel: (919) 716-6600 Fax:(919) 716-6766 October 1, 2008 Honorable Beecher R. Gray Administrative Law Judge . Office of Administrative Hearings 6714 Mail Service Center Raleigh, NC 27699-'6714 Re: Anderson Suitd Lit Gravel,-LLC, Gerald L. Anderson, LLC, raid Gerald Anderson v. NCDepari»tettt of Envirotttttent and Natural Resources, Division of Water Quality, 05 EIIR 1787 Dear Judge Gray: PIease find enclosed Respondent's Proposed Decision for the case referenced above. Respondent's Proposed Decision has also been sent to you by electronic mail. Please do not hesitate to contact me with any questions. Sincerely, Brenda E. Menard Associate Attorney General x o Cn Enclosure '"' cc.w/enclosure: Anderson Sand & Gravel, LLC Gerald L. Anderson, LLC G ald Anderson ohn Hennessy, DENR, DWQ. � File STATE OF NORTH CAROLINA COUNTY OF CRAVEN Anderson Sand & Gravel LLC, Gerald L. Anderson LLC, and Gerald Anderson, Petitioner, u N.C. Department of Enviromnent and Natural Resources, Division of Water Quality, IN THE OFFICE OF ADMINISTRATIVE HEARINGS 05 EHR 1787 PROPOSED DECISION This matter was heard before Administrative Law Judge Beecher R. Gray on Monday, July 28, 2008 in New Bern, North Carolina.. The case involved the appeal of a civil penalty assessment. Respondent assessed Petitioners in the amount of$44,933.84 for violations of N.C. Gen. Stat. § 143-215.1, 15A N.C. Admin. Code 213.021 1(2), 15A N.C. Admin. Code 2B.0233(4), I5A N.C. Admin. Code 28.023l(a)(1) and (b)(1)', 15A N.C. Admin. Code 2H.050t, and 15A N.C. Admin. Code 2H.0501. For Petitioner: Petitioners appeared pro se in this matter APPEARANCES ISSUES For Respondent Brenda E. Menard Associate Attorney General .N. C. Department of Justice Environmental Division 9001 Mail Service Center Raleigh, NC 27699-9001 1. Did Petitioners meet their burden of proof in establishing that Respondent erred in determining That a stream existed on the Spruill Town Mine site {"Site") for purposes of the r Neese River Basin Riparian Buffer rule, 15A N _C. Admin. Code 213.0233, and the applicable Water Quality Standards rule, 15A N.C. Admin. Code 2B.021 I? 2. Did Petitioners meet their burden of proof in establishing that Respondent erred in assessing $44,933.84 in civil penalties on October 28, 2005 against Petitioner for violations of N.C. Gen. Stat. § 143-215.1, 15A N.C. Admin. Code 2B.0211(2), 15A N.C. Admin. Code 2B.0233(4), 15A N.C. Admin. Code 213.0231(a)(1) and (b)(1), 15A N.C. Admin. Code 21-1.0501, and 15A N.C. Admin, Code 2H.0501? -I- STATUTES AND RULES'. N.C. Gen. Stat §§ 143-215.1 N.C. Admin. Code, Title 15A, Chapter 2B N.C. Admin. Code, Title 15A, Chapter 2H EXHIBITS RECEIVED INTO EVIDENCE PETITIONER: RESPONDENT: 1 Corporation Infonnation for Anderson Sand & Gravel, LLC 07-29-96 Annual Report showing date of organization 04-02-96 06-12-03 Certificate of Dissolution 2, Corporation Information for Gerald L. Anderson, LLC 02-04-98 Annual Report showing date of organization 03-25-94 04-05-05 Certificate of Dissolution 02-07-06 Application for Reinstatement 3 05-26-95 Certificate of Coverage under General Permit No: NCG020000 4 04-16-96 Site Plan - Spruill Town 1line 5 09-23-96 Letter from Division of Land Resources Approving Modi fication of Mining Permit per 04-16-96 Site Plan, with enclosed Permit for Operation of a Mining Activity 6 '12-17-99 Reissue - NPDES Stormwater Permit, Gerald Anderson LLC Certificate of Coverage No: NCG020300 7b 03-23-00 Borrow Pit Overall Site Map with Markings Showing Addition 9 07-14-04 Letter From DWQ Infonning Permittee of Requirement to Renew NPDES Stormwater Permit Coverage 10 01-21-05 Notice of Violations of Mining Permit To: Mr. Gerald Anderson/Anderson Sand & Gravel, LLC From: Division of Land Resources 12 United States Geologic Survey Quadrangle Topographic Map - 2 - of Spruill Town Mine Site and Surrounding Area 13 02-10-OS PHOTOS: Clearing of Wetland area that plan indicates to remain as wooded Active discharge without NPDES Permit Expanded mine boundary into wetland of Bear Creek 14 02-17-05 Cease & Desist Letter to Gerald Anderson/Anderson Sand & Gravel, LLC from Army Corps of Engineers 15 03-10-05 PHOTOS: View at point "A" GPS pt. Crossing over stream feature View at point "B" GPS pt. No boards in riser. Pump discharge 20 ft from riser View at point "C" GPS pt. view of where stream should be located View at point "D" 16 03-16-05 Letter to Mr. Gerald Anderson from Department of the Army r 17 04-25-05 Notice of Violation and Notice of Enforcement Recommendation To: James K. Spruill, Vanceboro, NC and Gerald Anderson, Bridgeton, NC From:. Division of Water Quality 18 08-05-05 PHOTOS, Active excavation in wetlands Active mining without permits . Expanded mine boundary into wetlands of Bear Creek Dewatering without an NPDES Permit. No boards in riser 19 09-30-05 Assessment of Civil Penalties Mr. James K. Spruill, Anderson Sand and Gravel, LLC Gerald L. Anderson, LLC, and Mr. Gerald Anderson Anderson Mine Site/Spruill Town Mine DV 2005-0023 09-30-05 Assessment Factors Form 20 10-28-05 Rescission and Replacement of Assessment of Civil Penalties Mr. lames K. Spruill, Anderson Sand and Gravel, LLC Gerald L. Anderson, LLC, and Mr. Gerald Anderson Anderson Mine Site/Spruill Town Minc DV 2005-0027 10-28-05 Assessment Factors Form 21 07-03-07 Rescission of Civil Penalties DV 2005-0027 against James K. Spruill, Billie C. Spruill, and Pierce Landing Subdivision 22 12-03-07 Permanent Injunction in 05 CVS 2047 - 3 - 23 Resume of Danny Smith 24 Resume of Kyle Barnes Based upon careful consideration of the testimony and evidence received during the contested case hearing as well as the entire record of this proceeding, the undersigned makes the following: FINDINGS OF FACT Petitioner Gerald Anderson is a citizen of the State of North Carolina and a resident of Craven County, North Carolina. 2. - Gerald Anderson was a member/manager of Petitioner Anderson Sand & Gravel, LLC in Craven County, North Carolina. (Respondent's Exhibit 1) Anderson Sand & Gravel, LLC was administratively dissolved pursuant to N.C.'Gen. Stat. § 57C-6-03 Oil June 12, 2003. (Respondent's Exhibit 1) Mr. Anderson testified at the hearing on this matter that lie was aware of the dissolution. (T pp 17-18) 1 1. 3. Gerald Anderson is a member/manager of Petitioner Gerald L. Anderson, LLC. (Respondent's Exhibit 2) Gerald.L. Anderson, LLC was administratively dissolved pursuant to N.C. Gen. Stat. § 57C-6-03 on April 5, 2005. (Respondent's Exhibit 2) Gerald L. Anderson, LLC was later reinstated. (Respondent's Exhibit 2) 4. Respondent Department of Environmental Resources ("DENR") is a State agency established pursuant to the provisions of N.C. Gen. Stat. § 14313-279.1 et seq. and vested with the authority to enforce the State's environmental pollution laws, including.laws enacted to protect the water quality of the State. The Division of Water Quality ("DWQ") is a division within DE✓NR and all actions taken by DWQ are necessarily actions of the Respondent. 5. In 1996, DENR's Division of Land Resources ("DLR") transferred a permit to Anderson Sand & Gravel, LLC, allowing it to conduct mining operations at the Site. (Respondent's Exhibit 5) hi 2005, Anderson Sand & Gravel, LLC was leasing the Site and held the mining rights to that property. (T p 18) Those mining rights were never transferred. (T p 18) The mining permit issued by the Division of Land Resources also was not transferred before the date of the civil penalty assessment at issue. (T p 25) 6. DWQ issued a certificate of coverage under a stormwater general permit allowing Gerald L. Anderson, LLC to discharge stormwater, process wastewater, and wastewater associated with mine dewatering to an unnamed tributary of Swift Creek in the Neilse River Basin_ (Respondent's Exhibit 3) On December 17, 1999, DWQ issued a renewed certificate of coverage to Gerald L. Anderson, LLC. (Respondent's Exhibit 6) - 4 - 7. By letter dated July 14, 2004, DWQ notified Petitioner Gerald L_ Anderson, LLC that its coverage under the stormwater general permit would expire on November 30, 2004. (Respondent's Exhibit 9) Petitioner did not renew the certificate of coverage. (T p 60) S. The Site is located in the Neuse River Basin. (T p 96) 9. Kyle Barnes, an Environmental Senior Specialist with DENR's Washington Regional Office staff, conducted a stream determination in 2006. (T p 84) This stream determination was conducted in order to evaluate whether a stream existed for purposes of DENR's statutes and regulations upstream of the Site. (T p 84) Mr. Barnes verified the existence of a perennial stream upstream of the Site, ending at the point where a "ditch" is shown on the Petitioner Anderson Sand & Gravel, LLC's mining map submitted in March 2000. (Respondent's Exhibit 7b; T p 84) Mr. Barnes testified at the hearing on this matter that if a perennial stream exists upstream, a perennial stream would naturally exist downstream as well. (T p 85) 10. A stream is shown running through the Site on the most recent version of the 1:24,000 scale (7.5 minute) quadrangle topographic maps prepared by the United States Geologic Survey ("USGS"), in approximately the same location as the feature labeled "ditch" on the mining map provided.by Anderson Said'& Gravel, LLC in March of 2000. (Respondent's Exhibit 7b; T pp 98-99) 11. In 1996, Petitioner Anderson Sand & Gravel, LLC submitted a mining map in its application for modification and transfer of the mining permit for the Site. (Respondent's Exhibit 5; T pp 20-21) This mining map showed a buffer surrounding the line labeled as a "ditch" running along the edge of the permitted mining area. (Respondent's Exhibit 5) 12. According to Mr. Barnes'.'estimation, approximately 1800 linear feet of stream had been excavated -at the time of his site visits in 2005. (T p 95) Excavation of a stream destroys the natural aquatic habitat of that stream. (T p 96) 13. Mr. Barnes testified at the hearing on this matter that when he visited the Site in 2005, there was no vegetation in the Fifty -foot area on both sides of the location where the stream would have been according to the USGS map. (T p 99) 14. During his inspections of the Site in 2005, Mr. Barnes witnessed discharges of mine pit water. (Respondent's Exhibits 13 and 18; T p 88-89, 108-109) No permit for such discharges was held by Petitioners at the time of those discharges. (T p 89, 109) 15. Anderson Sand & Gravel, LLC submitted a mining map entitled "Borrow Pit Overall Site" to the Division of Land Resources in March of 2000 showing wetlands surrounding the permitted mining area at the Site. (Respondent's Exhibit 7b; T pp 27-28) 16. The Army Corps of Engineers issued cease and desist letters to Petitioners on February 17, 2005 and March 16, 2005 Indicating that wetlands existed at the Site. (Respondent's Exhibits 14 and 16) - 5 - 17. Mr. Barnes witnessed fill of wetlands during his site visits in 2005 (Respondent's Exhibits 13 and 18; T pp 90, 108) Mr. Barnes testified at the hearing on this matter that the fill of wetlands would have required a 401 Water Quality Certification. (T p 90) No 401 Water Quality Certification was issued for this Site..(T p 90) Mr. Barnes also testified that this fill also constituted a wetland standards violation pursuant to 15A N.C. Admin. Code 2B.0231. (T p 108) 18. Tom Reeder, the former Deputy Director of DWQ, was delegated authority to assess the civil penalty at issue. (T p 1 I6) Before assessing the civil penalty at issue, Mr. Reeder considered all the factors listed in N.C. Gen. Stat. § 143-282.1(b). (Respondent's Exhibit 20; T p 119) 19. In his position as Deputy Director of DWQ, Mr. Reeder assessed approximately one hundred fifty (150) to two hundred (200) non -point source cases, including wetlands violations, buffer violations, and violations for impacts to streams without 401 Certification. (T p 121-123) In Mr. Reeder's evaluation of the civil penalty at issue in this contested case, the underlying violations were among the most egregious violations for which he had assessed penalties during his time with DWQ, and the civil penalty assessed was consistent with other assessments made by Mr..Reeder during his time with DWQ. (T pp 121-122) CONCLUSIONS 017 LAW 1. All parties are properly before the Office of Administrative Hearings, and the Office of Administrative Hearings has jurisdiction over both the parties and over the subject matter at issue. 2. All parties have been correctly designated, and there is no question as to misjoinder or nonjoinder of parties. 3. Petitioners are "persons" within the meaning of N.C..Gen. Stat. § 143-215.6A pursuant to N.C. Gen. Stat. § 143-212(4). 4. A permit is required to discharge waste or storinwater to waters of the State . pursuant to N.C. Gen. Stat. § 143-215.1(a). 5. Waters of the State existed on the Site. Petitioners violated N.C. Gen. Stat. § 143- 215.1 by discharging wastewater and storinwater to those waters without. a permit in 2005. 6. Pursuant to 15A N.C. Admin. Code 2B.0211, fresh surface waters in the State "shall be suitable for aquatic life propagation and maintenance of biological integrity, wildlife, secondary recreation, and agriculture. Sources of water pollution which preclude any of these uses on either a short-term or long-term basis shall be considered to be violating a water quality standard." - 6 - Fresh surface waters existed at the Site. Petitioners violated 15A N.C. Admin. Code 2B.021 I by excavating 1850 linear feet of stream, thereby removing the use of those waters. 8. A vegetated buffer spanning 50 feet must be maintained adjacent to surface waters'in the Neuse River Basin pursuant to 15A N.C. Admin. Code 2B.0233. For purposes of this buffer rule, a surface water is "present if the feature is approximately shown on either the most recent version of the soil survey map prepared by the Natural Resources'Conservation Service of the United States Department of Agriculture or the most recent version of the 1:24,000 scale (7.5 minute) quadrangle topographic maps prepared by the United States Geologic Survey." 9. Surface waters existed at this site for the purposes of 15A N.C. Admin. Code 2B.0233, since the Site is located within the Neuse River Basin and a stream feature was shown at the Site on the most recent version of the 1:24,000 scale (7.5 minute) quadrangle topographic maps prepared by the United States Geologic Survey. 10. Petitioners violated 15A N.C. Admin. Code 2B.0233 by removing the vegetated buffer beside the surface waters present on the Site. IL Pursuant to 15A N.C. Admin. Code 2B.023 I (a),. wetlands in the State shall be suitable for uses such as "Mtorm and flood water storage and retention and the moderation of extreme water'level fluctuations." In order to ensure that wetlands in the State are suitable for such uses, "[1]iquids, fill or other solids or dissolved gases may not be present in amounts which may cause adverse impacts on existing wetland uses," pursuant to 15A N.C. Admin. Code 2B.023 I (b). 12. Wetlands existed on the Site as shown on Petitioner Anderson Sand & Gravel's map entitled `Borrow Pit Overall Site," submitted March of 2000. These wetlands constitute waters of the State pursuant to N.C. Gen. Stat. § 143-212(6). 13. Petitioners violated 15A NCAC 2B.0231 by causing "fills and other solids" to be present in amounts that would "cause adverse impacts on existing wetland uses." 14. A 401 Water Quality Certification is required to discharge dredged or fill material to wetlands in the State pursuant to 15A N.C. Admin. Code 21-1.0501 and 2H.0502. 15. Petitioners violated 15A N.C. Admin. Code 2110501 and 2I-L0502 by causing discharges of dredged or fill material to wetlands without first obtaining a 401 Water Quality Certification. 16. Respondent properly assessed Petitioners for $44,933.84. The assessment was appropriate in amount due to the violations at the Site. 17. Under North Carolina law, dissolved corporations are prohibited from conducting any business other than that appropriate to winding up their affairs and liquidating their assets. - 7 - N.C. Gen. Stat. § 55-1.4-05(a). In Guilford Builders Supply Co. v. Reynolds, 249 N.C. 612, 61, 107 S.E.2d 80, 83 (1959), the North Carolina Supreme Court stated: Under certain circumstances, stockholders, officers and directors may be held liable as individuals or partners when such stockholders, officers and directors permit the charter of the corporation to expire, and continue to obtain credit for and on behalf of a purported but non-existent corporation. In the similar context of a corporation with a suspended charter due to non-payment of taxes,. the North Carolina Court of Appeals stated; The general rule is that the shareholders of a corporation whose charter has been suspended "are not made individually liable for its debts incurred during the suspension" .... On the other hand, directors and officers are personally liable for corporate obligations incurred by them on behalf of the corporation, or by others with their acquiescence, if at that time they were aware that the corporate charter was suspended. Charles A. Torrence Co. v. Clary, 121 N.C. App. 211, 213, 464 S.E.2d 502, 504 (N.C. Ct. App. 1995) (citations omitted). 18. Mr. Anderson continued to carry on business in the name of Anderson Sand & -- Gravel, LLC, by continuing to conduct mining operations at the Site under a mining permit issued by the Division of Land Resources and using mining rights lield by Anderson Sand & Gravel, LLC. Mr. Anderson was aware of the dissolution of Anderson Sand & Gravel, LLC,'but failed to wind up the affairs of the business. Instead, Mr. Anderson continued to benefit from activities undertaken oil behalf of the dissolved corporation. Therefore, Mr. Anderson assumed personal responsibility for the liabilities Incurred in the name of Anderson Sand & Gravel, LLC after its dissolution on June 12, 2003. Anderson Sand &. Gravel, LLC may also be liable for violations that occurred before the date of its dissolution. 19. When a dissolved corporation is reinstated, the corporation continues its activities as if the dissolution had never occurred. N.C. Gen. Stat. § 55-14-22(c). The reinstatement "relates back to and takes effect as of the date of the administrative dissolution and the corporation resumes carrying on its business as if the administrative dissolution had never occurred, subject to the rights of any person who reasonably relied to his prejudice upon the certificate of dissolution." 1(1. Therefore, any liabilities incurred by the corporation after the date of the administrative dissolution remain liabilities of the corporation once it has been reinstated. 20. Gerald L. Anderson, LLC was administratively dissolved, but was later reinstated. Pursuant to N.C. Gen. Stat. § .55-14-22, a reinstated corporation continues its activities as if it was never dissolved. Therefore, Gerald L. Anderson, LLC retains any liabilities that it incurred, regardless of the (late oil which they were incurred. - 8 - Based on the foregoing Findings of Fact and COnCILlsio115 of Law, the undersigned makes the following: PROPOSED DECISION The Environmental Management Commission should uphold the decision to assess a civil penalty against Petitioners for violations of the State's water pollution laws in the amount of $44,933.84. NOTICE The Environmental Management Commission, the agency making the final decision in this contested case, is required to give each party an opportunity to'file exceptions to this recommended decision and to present written arguments to those in the agency who will make the final decision. N.C. Gen. Stat. § 150B-36(a). The Environmental Management Commission is required by N.C. Gen. Stat. § 150B- 36(b3) to serve a copy of the final decision on all parties and to the Office of Administrative Hearings. This the day of ', 2008. Beecher Gray Administrative Law Judge - 9 - State of North Carolina Department of Environment, Health and Natural Resources Division of Water Quality James B. Hunt, Jr., Governor Jonathan B. Howes, Secretary A. Preston Howard, Jr., P.E., Director October 28, 1996 Tina Anderson Anderson Sand & Gravel 223 N Cardinal Lane Wilmington , NC 23405 IT ALT4 [DEHNR Subject: General Permit No, NCG020000 Anderson Sand & Gravel COC NCG020343 Craven County . Deal' Tina Anderson In accordance with your application for discharge permit received on May- 15, 1996, we are forwarding herewith the subject certificate of coverage to discharge under the subject state - NPDES general permit. This permit is issued pursuant to the requirements of North Carolina General Statute 143-215 .1 and the Memorandum of Agreement between North Carolina and the US Environmental Protection agency dated December 6, 1983. If any parts, measurement frequencies or sampling requirements contained in this permit are unacceptable to you, you have the right to request an individual permit by submitting an individual permit application. Unless such demand is made, this certificate of coverage shall be final and binding. Please take notice that this certificate of coverage is not transferable except after notice to the Division of Water Quality. The Division of Water Quality may require modification or revocation and reissuance of the certificate of coverage. This permit does not affect the legal requirements to obtain other permits which may be required by the Division of Water Quality or permits required by the Division of Land Resources, Coastal Area Management Act or any other Federal or Local governmental permit that may be required. If you have any question concerning this permit, please contact MR. ANTONIO EVANS at telephone number 919/733-5083. Sincerely, C! tD L E-Y AFN`4E' A. Preston Howard, Jr. P.E. cc: Washington Regional Office EPA P.O. Box 29535, Raleigh, North Carolina 27626-0535 Telephone 919-733-5083 FAX 919-733-0719 An Equal Opportunity Affirmative Action Employer 50% recycled/ 10% post -consumer paper STATE OF NORTH CAROLINA DEPARTMENT OF ENVIRONMENT, HEALTH, AND NATURAL RESOURCES DIVISION OF WATER QUALITY GENERAL PERMIT NO. NCG020000 CERTIFICATE OF COVERAGE No. NCG020343 STORMWATER, MINE DEWATERING, AND/OR OVERFLOW FROM PROCESS WATER RECYCLE SYSTEMS DISCHARGES NATIONAL POLLUTANT DISCHARGE ELIMINATION SYSTEM In compliance with the provision of North Carolina General Statute 143-2I5.1, other lawful standards and regulations promulgated and adopted by the North Carolina Environmental Management Commission, and the Federal Water Pollution Control Act, as amended, Anderson Sand and Gravel is hereby authorized to construct and operate or continue operation of a treatment system for mine dewatering and/or recycle systems process wastewater overflow with the discharges of treated wastewater and/or construct and discharge stormwater from a facility located at Anderson Sand and.Gravei 221 Spruill Town Rd. Craven County to receiving waters designated as an unnamed tributary to Bear Branch , Gass C Sw NSW in the Neuse River Basin in accordance with the effluent limitations, monitoring requirements, and other conditions set forth in Parts I, II, III and IV of General Permit No. NCG020000 as attached. This certificate of coverage shall become effective October 28, 1996. Tliis Certificate of Coverage shall remain in effect for the duration of the General Permit, Signed this day October.28, 1996. QR1GI AL SIGNED BY A. Preston Howard, Jr., P.E., Director Division of Water Quality By Authority of the Environmental Management Commission a .f- - .o.. Q-9 M 77N� 17'30" 560 000 FEET �� �'•" 35°15'-- '07- — 108 - 77-07,30" 0 Produced by the United States Geological Survey Control by USGS and NOSlNOAA Compiled by photogrammetric methods from aerial photographs taken 1977. Field checked 1979. Map edited 1983 Projection and 10,000-foot grid ticks: North Carolina coordinate system (Lambert conformal conic) 1000-meter Universal Transverse Mercator grid, zone 18 1927 North American Datum To place on the predicted North American Datum 1983 move the projection lines 12 meters south and 27 meters west as shown by dashed corner ticks Fine red dashed lines indicate selected fence and field lines where generally visible on aerial photographs. This information is unchecked d36 109 2 570 000 FEET AsKrN o KM 5' NEW BERN 18 KM GN B° 142 MILS 1°12' 21 . MILS UTM GRID AND 1993 MAGNETIC NORTH DECLINATION AT CENTER OF SHEET 1 FACILITY �N� eC on SG Tjc�k- afA C COUNTY Cra Seri NPDES MAP # F:30,5 c- DSN FLOC#! N/A SUB BASIN 03 --0 LI "C)q LATITUDE 35 015 , 5 G" LONGITUDE 7 q L 0� b-q (' RECEIVING STREAM ST' F:AM CLASq DID .. RGE CLAS4 r ON DAT9 W&cw Br�Ancj� C s w t) s UD Ito c'rn Wc&+,�-:, f 0�slIctg