310026_Enforcement_20191107

ROY COOPER
Governor
MICHAEL S. REGAN
Secretary
LINDA CULPEPPER
Director
NORTH CAROLINA
Environmental Quality
November 7, 2019
CERTIFIED MAIL - #70081300 00001124 2142
RETURNRECEIPT REQUESTED
Sheila Graham
Gilt Free Farms
353 Blackmore Road
Warsaw, North Carolina 28398
Dear Ms. Graham:
RECE1136�.PJj adl.vf VMR/M
NOV 13 ?0119
Water Quality Rergional
Operations Section
Wilminp-ten Re.pinnal Office
SUBJECT: 'Assessment of Civil Penalties for Violation(s) of
15A NCAC 2T .0105(e)(2)
Farm # 31-0026
Duplin County
Enforcement File No. DV-2019-0096
This letter transmits notice of a civil penalty assessed against Sheila Graham in the amount of $39,000.00,
and $4,607.96 in investigative costs, for a total of $43,607.96. Attached is a copy of the assessment
document explaining this penalty.
This action was taken under the authority vested in me by delegation provided by the Secretary of the
Department of Environment Quality. Any continuing violation(s) may be the subject of a new enforcement
action, including an additional penalty.
Within thirty days of receipt of this notice, you must do one of the following:
1. Submit payment of the penalty:
Payment should be made directly to the order of the Department of Environmental Quality (do not
include waiver form). Payment of the penalty will not foreclose further enforcement action for any
continuing or new violation(s). Please submit payment to the attention of:
Miressa Garoma
Animal Feeding Operations Program
Division of Water Resources
1636 Mail Service Center
Raleigh, North Carolina 27699-1636
OR
D—E North Carolina Department of Environmental Quality I Division of Water Resources
512 North Salisbury Street 11636 Mail Service Center I Raleigh, North Carolina 27699-1636
0=01 919.707.9000

2. Submit a written request for remission including a detailed justification for such request:
Please be aware that a request for remission is limited to consideration of the five factors listed below, as
they may relate to the reasonableness of the amount of the civil penalty assessed. Requesting remission is
not the proper procedure for contesting whether the violation(s) occurred or the accuracy of any of the
factual statements contained in the civil penalty assessment document. Because a remission request
forecloses the option of an administrative hearing, such a request must be accompanied by a waiver of your
right to an administrative hearing and a stipulation and agreement that no factual or legal issues are in
dispute. Please prepare a detailed statement that establishes why you believe the civil penalty should be
remitted, and submit it to the Division of Water Resources at the address listed below. In determining
whether a remission request will be approved, the following factors shall be considered:
(1) whether one or more of the civil penalty assessment factors in NCGS 143B-282.1(b) were
wrongfully applied to the detriment of the violator;
(2) whether the violator promptly abated continuing environmental damage resulting from the
violation;
(3) whether the violation was inadvertent or a result of an accident;
(4) whether the violator has been assessed civil penalties for any previous violations; or
(5) whether payment of the civil penalty will prevent payment for the remaining necessary remedial
actions.
Please note that all evidence presented in support of your request for remission must be submitted in
writing. The Director of the Division of Water Resources will review your evidence and inform you
of their decision in the matter of your remission request. The response will provide details regarding
the case status, directions for payment, and provision for further appeal of the penalty to the
Environmental Management Commission's Committee on Civil Penalty Remissions (Committee).
Please be advised that the Committee cannot consider information that was not part of the original
remission request considered by the Director. Therefore, it is very important that you prepare a
complete and thorough statement in support of your request for remission.
In order to request remission, you must complete and submit the enclosed "Request for Remission of Civil
Penalties, Waiver of Right to an Administrative Hearing, and Stipulation of Facts" form within thirty (30)
days of receipt of this notice. The Division of Water Resources also requests that you complete and submit
the enclosed "Justification for Remission Request." Both forms should be submitted to the following
address:
Miressa Garoma
Animal Feeding Operations Program
Division of Water Resources
1636 Mail Service Center
Raleigh, North Carolina 27699-1636
OR
3. File a petition for an administrative hearing with the Office of Administrative Hearings:
If you wish to contest any statement in the attached assessment document you must file a petition for an
administrative hearing. You may obtain the petition form from the Office of Administrative Hearings.

You must file the petition with the Office of Administrative Hearings within thirty (30) days of receipt of
this notice. A petition is considered filed when it is received in the Office of Administrative Hearings
during normal office hours. The Office of Administrative Hearings accepts filings Monday through Friday
between the hours of 8:00 a.m. and 5:00 p.m., except for official state holidays. The petition may be filed
by facsimile (fax) or electronic mail by an attached file (with restrictions) - provided the signed original,
one (1) copy and a filing fee (if a filing fee is required by NCGS § 15013-23.2) is received in the Office of
Administrative Hearings within seven (7) business days following the faxed or electronic transmission.
You should contact the Office of Administrative Hearings with all questions regarding the filing fee and/or
the details of the filing process. The mailing address and telephone and fax numbers for the Office of
Administrative Hearings are as follows:
Office of Administrative Hearings
6714 Mail Service Center
Raleigh, NC 27699-6714
Tel: [phone]
Fax: [phone]
One (1) copy of the petition must also be served on DEQ as follows:
William F. Lane, General Counsel
DEQ
1601 Mail Service Center
Raleigh, NC 27699-1601
Failure to exercise one of the options above within thirty (30) days of receipt of this notice, as evidenced
by an, internal date/time received stamp (not a postmark), will result in this matter being referred to the
Attorney General's Office for collection of the penalty through a civil action.
Included in this enforcement package is the requirement to apply for coverage under an NPDES
permit. According to the North Carolina General Statutes §143-215.1, 40 Code of Federal
Regulations §122.23, and the Memorandum of Agreement between North Carolina and the U.S.
Environmental Protection Agency once a facility has a discharge to waters of the State, the permittee
must apply for an NPDES permit (see the attached letter for instructions).
Please be advised that additional penalties may be assessed for violations that occur after the review period
of this assessment. If you have any questions, please contact Miressa D. Garoma at [phone].
Sincerely,
Jeff Poupart, Chief
Water Quality Permitting Section
Division of Water Resources
ATTACHMENTS
cc: ilhuiigtQn RS egonal Supers nor a ae linen s1i'
File 4 PC-2019-0 6 w/ attachments
WQPS Central Files w/ attachments
Duplin County Health Department

STATE OF NORTH CAROLINA
COUNTY OF DUPLIN
IN THE MATTER OF
SHEILA GRAHAM
FOR VIOLATIONS OF NORTH CAROLINA
GENERAL STATUE 143-215.1 AND SWINE
WASTE GENERAL PERMIT AWG100000
NORTH CAROLINA
DEPARTMENT OF
ENVIRONMENTAL QUALITY
File No. DV-2019-0096
FINDINGS AND DECISION
AND ASSESSMENT OF
CIVIL PENALTIES
Acting pursuant to delegation provided by the Secretary of the Department of Environmental Quality and
the Director of the Division of Water Resources (DWR), I, Jeff Poupart, Chief of the Water Quality
Permitting Section of the DWR, make the following:
I. - FINDINGS OF FACT:
A. Sheila Graham; formerly Sheila Graham Schmalbach, owns and operates Gilt Free Farms,
a feeder to finish swine animal operation located northeast of Warsaw, North Carolina, on
the west side of Blackmore Road in Duplin County.
B. Sheila Graham was issued Certificate of Coverage AWS310026 under North Carolina
Swine Waste Management System General Permit AWG100000 for Gilt Free Farms on
October 1, 2014, effective upon issuance, with an expiration date of September 30, 2019.
C. North Carolina General Statute (G.S.) 143-215.1(a) (1) states that no person shall make
any outlet to the waters of the state without first receiving a permit for the activity.
D. Condition I.I. General Permit AWG100000 states, in part, that "Any discharge of waste
which reaches surface waters or wetlands is prohibited except as otherwise provided in this
General Permit and associated statutory and regulatory provisions. Waste shall not reach
surface waters or wetlands by runoff, drift, manmade conveyances, direct application and
direct discharge or through ditches not otherwise classified as State waters."
E. On May 2, 2018, DWR staff inspected the Gilt Free Farm and found an estimated minimum
of fifteen thousand (15,000) gallons of animal waste was discharging to a ditch and into an
unnamed tributary (UT) to Turkey Creek, Class C; Sw waters of the State in the Cape Fear
River basin by way of runoff due to hydraulic overloading on the irrigation fields.
F. On September 27, 2018, DWR staff inspected the Gilt Free Farm facility and found runoff
flowing into a pond on northern part of a field. The pond's dike wall had been breached,
allowing flow to drain directly to an UT to Turkey Creek.
G. The discharges of animal waste to waters of the state described in Findings of Fact I. E.
and I. F. above did not occur as a result of effects from a 25-year, 24-hour rainfall event.
H. Sheila Graham had no valid permit for the discharges of animal waste to waters of the state
described in Findings of Fact I. E. and I. F. above.

I. Condition H. 1 of General Permit AWG100000 states that "The collection, treatment, and
storage facilities, and the land application equipment and fields shall be properly operated
and maintained at all times."
On May 2, 2018, DWR staff inspected the Gilt Free Farm facility and found a valve leaking
for the irrigation pump connection on lagoon 2. A follow up inspection on August 22, 2018
determined the leaking valve was still an issue.
K. Condition II. 5. of General Permit AWG100000 states that "In no case shall land
application rates result in excessive ponding or any runoff during any given application
event."
L. On September 27, 2018, DWR staff inspected the Gilt Free Farm facility irrigation fields
and found runoff from the fields into a pond on northern part of field. Pond dike wall has
breached and drains to Unnamed Tributary (UT) of Turkey Creek.
M. Condition H. 12. of General Permit AWG100000 states that "A protective vegetative cover
shall be established and maintained on all earthen lagoon/storage pond embankments
(outside toe of embankment to maximum pumping elevation), berms, pipe runs, and
diversions to surface waters or wetlands. Trees, shrubs, and other woody vegetation shall
not be allowed to grow on the lagoon/storage pond embankments. All trees shall be
removed in accordance with good engineering practices. Lagoon/storage pond areas shall
be accessible, and vegetation shall be kept mowed."
N. During a May 31, 2018 inspection of the Gilt Free Farm, staff from DWR's Wilmington
Regional Office observed the lagoon dike wall was overgrown with trees and shrubs. This
problem was observed during a prior inspection (July 7, 2017), and on the following,
subsequent inspection dates: August 16, 2018, August 22, 2018 and October 1, 2018.
O. Condition II. 22. of General Permit AWG100000 states in part "The Permittee shall
consider pending weather conditions in making the decision to land apply waste and shall
document the weather conditions at the time of land application on forms supplied by or
approved by the Division."
P. During the May 2, 2018 and May 31, 2018 inspections of Gilt Free Farm, DWR staff
examined Gilt Free Farm's irrigations records and discovered the records did not include
weather codes indicating the weather conditions for eighty (80) irrigation events, with
waste applied on twenty-one (21) different fields.
Q. Condition II. 26. of General Permit AWG100000 states that "Crops for which animal waste
is land applied must be removed from the land application site and properly managed and
utilized unless other management practices are approved in the CAWMP."
R. During the May 2, 2018. inspection of Gilt Free Farm, DWR staff observed the hay fields
overgrown with weeds, shading out the hay crop. Fields needed weed control and cutting.
Technical assistance contact information was provided, options discussed, and additional
time given to repair. Similar conditions were documented during DWR inspections of Gilt
Free Farm conducted on May 31, 2018, August 22, 2018 and September 26, 2018.
S. Condition III. 2.b. of General Permit AWG100000 states that any facility that experiences
freeboard violations in any two consecutive years may be required to monitor lagoon waste
levels using automated lagoon/storage pond waste -level monitors, along with the
installation of recorders (monitored and recorded at least hourly) on all treatment and
2

storage structures to measure and record freeboard. The automated equipment must be in
place no later than ninety (90) days following notification of the requirement for its
installation from the Director.
T. In a May 22, 2018 letter to Ms. Sheila Graham from DWR's Wilmington Regional Office,
Ms. Graham was notified the Gilt Free Farm was required to install, within ninety (90)
days of the letter's receipt, an automated lagoon waste -level monitoring and recording
system per Condition III.2.b. of General Permit AWG100000. U. S. Postal Service
tracking confirms the letter was received by Ms. Graham on May 23, 2018. Additional
notification was provided during a May 31, 2018 inspection, when Ms. Graham was
reminded that auto waste level gauges need to be installed within 90 days from May 23,
2018 and to also keep manual records during that time. Ms. Graham responded in an
August 21, 2018 email to DWR, stating the auto waste level gauges "...have not been
installed at this time because of financial reasons." Ms. Graham asked if DWR would
consider alternative options due to the high costs associated with this requirement. During
a DWR inspection of the facility's lagoons/storage ponds on August 22, 2018, it was
confirmed that auto waste level gauges had not been installed. DWR responded to Ms.
Graham in September 5, 2018 email, denying her request and restating the installation of
an automated lagoon waste -level monitor and recorder was required "...due to the history
of noncompliance of the facility which included freeboard and other violations." During
an inspection of the facility on October 1, 2018, DWR staff observed the auto waste level
gauge recorders had not been installed.
U. Condition III. 9. of General Permit AWG100000 requires Ms. Sheila Graham, in the event
of a discharge from the waste collection, treatment, storage and application systems
(including the land application sites) to surface waters or wetlands, to notify the
Wilmington Regional Office of the occurrence of the discharge. The discharge notification
is required to include laboratory analysis of a waste sample from the source lagoon/storage
pond obtained within seventy-two (72) hours following first knowledge of the discharge to
surface waters or wetlands. The sample shall be analyzed for the following minimum
parameters: fecal coliform bacteria, five-day biochemical oxygen demand (BOD5), total
suspended solids, total phosphorous, ammonia nitrogen (NH3-N), nitrate nitrogen (NO3-
N) and Total Kjeldahl nitrogen (TKN). Monitoring results must be submitted to the
Division within thirty (30) days of the discharge event.
V. As part of its May 2, 2018 inspection of Gilt Free Farms, DWR staff requested that Ms.
Sheila Graham collect a waste sample from the lagoon and submit the results of its analysis
to DWR's Wilmington Regional Office, pursuant to Condition III. 9. of General Permit
AWG100000. No sample results were submitted to the Wilmington Regional Office within
30 days as required. During an August 22, 2018 inspection of Gilt Free Farms, DWR staff
again requested lagoon sample results from May 2, 2018. As of the date of this action, no
sample results have been received.
W. Condition III. 12. of General Permit AWG100000 requires permittees to provide requested
information and reports related to the operation of the animal waste management system
within fifteen (15) working days of receiving the request from the Division.
X. As part of the corrective action required by Notice of Violation NOV-2017-PC-0272, dated
May 19, 2017, Ms. Sheila Graham was required to provide signed documentation
confirming that the elevations for both lagoons at Gilt Free Farm had been reshot, freeboard
markers had been installed accordingly and were reading accurate waste levels to DWR's
Wilmington Regional Office. Ms. Graham was reminded of the requirement during DWR
inspections of Gilt Free Farm conducted on May 2, 2018, May 3, 2018, May 31, 2018 and
3

August 22, 2018. Required documentation for neither of the two (2) lagoon/storage ponds
has been received.
Y. Condition III.13. of General Permit AWG100000 states in part that "The Permittee shall
report by telephone to the appropriate Division Regional Office as soon as possible, but in
no case more than twenty-four (24) hours following first knowledge of the occurrence of
any of the following events:
(e) Failure to maintain storage capacity in a lagoon/storage pond greater than or equal to
that required in Condition V.2. of this General Permit.
(f) Failure to maintain waste level in a lagoon/storage pond below that of the designed
structural freeboard (twelve (12) inches from top of dam or as specified in lagoon/storage
pond design). Note that this notification is in addition to the report required by Condition
III.13.e above."
Z. During inspections of Gilt Free Farm conducted on May 2, 2018 and September 26, 2018,
lagoon freeboard levels were found to be out of compliance with permit conditions. No
prior notification of the noncompliance had been received by DWR's Wilmington Regional
Office. On September 26, 2018 the Gilt Free Farm freeboard level was found to be less
than the twelve (12) inches of designed structural freeboard required by General Permit
AWG100000 and no notification of the circumstance had been received by DWR.
AA. Condition III.15 of General Permit AWG100000 requires permittees, in the event of a
discharge of 1,000 gallons or more of animal waste to surface waters or wetlands, to issue
a press release to all print and electronic news media that provide general coverage in the
county in which the discharge occurred, setting out details of the discharge, within forty-
eight (48) hours after it is determined that the discharge has reached surface waters or
wetlands.
BB. Condition 111.16 of General Permit AWG100000 requires permittees, in the event of a
discharge of 15,000 gallons or more of animal waste to surface waters or wetlands, to
publish a public notice in a newspaper having general circulation in the county in which
the discharge occurred and the county immediately downstream within ten (10) days of the
discharge. The owner or operator is required to file a copy of the notice and proof of
publication with the Department within thirty (30) days after the notice is published.
CC. The May 2, 2018 event referenced in Finding of Fact I. E. (runoff due to hydraulic
overloading on the irrigation fields, with> 15,000 gallons of animal waste reaching surface
waters) required Ms. Sheila Graham to issue a press release and public notice. On May 31,
2018, DWR staff inspected Gilt Free Farm and confirmed the press release and public
notice had not been sent.
DD. Condition V. 2. of General Permit AWG100000 states that "The maximum waste level in
lagoons/storage ponds shall not exceed that specified in the facility's CAWMP. At a
minimum, maximum waste level for lagoons/storage ponds must not exceed the level that
provides adequate storage to contain the 25-year, 24-hour storm event plus an additional
one (1) foot of structural freeboard except that there shall be no violation of this condition
if: (a) there is a storm event more severe than a 25-year, 24-hour event, (b) the Permittee
is in compliance with its CAWMP, and (c) there is at least one (1) foot of structural
freeboard."
n

EE. The CAWMP for Gilt Free Farm states the designed freeboard for Lagoon 1 is nineteen
and one-half (19.5) inches. Lagoon 2 designed freeboard is thirty-two (32) inches.
FF. Staff in DWR's Wilmington Regional Office received Plan of Action documentation for
non -compliant freeboard levels at Gilt Free Farm on the following dates: June 15, 2018,
July 16, 2018, August 16, 2018, October 10, 2018, and November 13, 2018. During DWR
inspections, non -compliant freeboard levels were discovered on these dates at Gilt Free
Farm: May 2, 2018 and September 26, 2018.
GG. None of the violations of freeboard requirements described in Finding of Fact I. EE. above
occurred as a result of effects from a 25-year, 24-hour rainfall event.
HH. On May 21, 2019, the Division issued a Notice of Violation with Recommendations for
Enforcement to Sheila Graham, formerly Sheila Schmalbach, identifying violations of
General Permit AWG100000.
Ii. A response was not received from the Owner, Sheila Graham, formerly Sheila Graham
Schmalbach, to the Notice of Violation sent to her. dated May 21, 2019.
JJ. Sheila Graham has been assessed civil penalties for violations occurring at Gilt Free Farm
on two occasions during the five years prior to the date of this assessment.
KK. The costs to the State of the enforcement procedures in this matter totaled $4,607.96.
Based upon the above Findings of Fact, I make the following:
Il. CONCLUSIONS OF LAW:
A. Sheila Graham, formerly named Sheila Graham Schmalbach, is a "person" within the
meaning of G.S. 143-215.6A pursuant to G.S. 143-212(4).
B. A permit for an animal waste management system is required by G.S. 143-215.1.
C. Turkey Creek and its unnamed tributaries constitute waters of the State within the meaning
of G.S. 143-215.1 pursuant to G.S. 143-212(6).
D. Animal wastes described in the Findings of Fact above are "waste" pursuant to G. S. 143-
213(18)(b).
E. The discharges of animal waste to unnamed tributaries to Turkey Creek observed on May
2, 2018 and September 26, 2018 constituted making an outlet to waters of the State.
F. Sheila Graham violated G.S. 143-2015.1(a)(1) on May 2, 2018 and September 26, 2018 by
making an outlet to waters of the state without first obtaining a permit for the discharge.
G. The above -cited failure to properly operate and maintain collection, treatment, and storage
facilities, and land application equipment and fields at all times violated Condition 11. 1. of
General Permit AWG100000.
H. The above -cited failure to irrigate at land application rates which would not result in
excessive ponding or any runoff violated Condition H. 5. of General Permit AWG100000.
5

I. Sheila Graham violated Condition II. 12. of General Permit AWG100000 by allowing
lagoon dike walls at Gilt Free Farm to be overgrown with trees and shrubs.
J. Sheila Graham violated Condition II. 22. of General Permit AWG100000 by failing to
include weather codes on irrigation records for the application of waste from Gilt Free
Farm.
K. Sheila Graham violated Condition II.26. of General Permit AWG100000 by failing to
adequately maintain the cover crop in irrigation fields utilized by Gilt Free Farm such that
they were suitable for land application of animal waste between May 2, 2018 and
September 26, 2018.
L. Sheila Graham violated Condition III.2.b. of General Permit AWG100000 by failing to
install automated lagoon/storage pond waste -level monitors and recorders on treatment and
storage structures at Gilt Free Farm by August 22, 2018 (90 days following the May 23,
2018 notification of the requirement to install the equipment).
M. The May 2, 2018 land application runoff event described in Finding of Fact I. E. was an
event requiring the collection of a waste sample, along with its laboratory analysis and the
submittal of results to DWR pursuant to Condition III.91. of General Permit AWG100000.
N. Sheila Graham violated Condition 111.91. of General Permit AWG100000 by failing to
submit to DWR the laboratory analysis of a waste sample collected from the Gilt Free
Farms lagoon system following the May 2, 2018 discharge event.
O. Sheila Graham violated Condition III. 12. of General Permit AWG100000 by failing to
provide the DWR with information documenting the proper installation of freeboard
measurement apparatus in each of the Gilt Free Farm lagoons.
P. Sheila Graham violated Conditions III. 13.e. & f. of General Permit No. AWG100000 by
failing to notify the Wilmington Regional Office of noncompliant freeboard levels at Gilt
Free Farm prior to site inspections conducted on May 2, 2018 and September 26, 2018.
Q. Sheila Graham violated Conditions 111.15. and 16. of General Permit AWG100000 by
failing to provide a press release or public notice regarding the discharge of 15,000 gallons
or more of animal waste to surface waters or wetlands that occurred on May 2, 2018.
R. Sheila Graham violated Condition V.2. of General Permit AWG100000 by failing to
maintain waste levels in the lagoons such that the maximum levels specified in the Gilt
Free Farm CAWMP were not exceeded, as demonstrated by inadequate freeboard levels
observed on May 2, 2018 and September 26, 2018.
S. Sheila Graham may be assessed civil penalties pursuant to G.S. 143-215.6A(a)(2) which
provides that a civil penalty of not more than twenty-five thousand dollars ($25,000.00)
per violation may be assessed against a person who violates or fails to act in accordance
with the terms, conditions, or requirements of a permit required by G.S. 143-215.1.
T. The State's enforcement costs in this matter may be assessed against Sheila Graham
pursuant to G.S. 143-215.3(a)(9) and G.S. 143B-282.1(b)(8).
U. The Chief of the Water Quality Permitting Section, Division of Water Resources, pursuant
to delegation provided by the Secretary of the Department of Environmental Quality and
the Director of the Division of Water Resources, has the authority to assess civil penalties
6

in this matter.
Based upon the above Findings of Facts and Conclusions of Law, I make the following:
M. DECISION:
Accordingly, Sheila Graham, owner of Gilt Free Farm at the time of the noncompliance, is hereby
assessed' a/ civil penalty of:
$ `7 o()
For 2 of 2 violations of G.S. 143-215.1(a)(1) by making outlets
to the waters of the State without a permit on May 2, 2018 and September
26, 2018.
$ 3 A 0
For violating Condition It. 12. of General Permit AWG100000 by
allowing lagoon dike walls at Gilt Free Farm to be overgrown with trees
and shrubs.
J
$
For violating Condition H. 22. of General Permit AWG100000 by failing
to include weather codes on irrigation records for the application of waste
from Gilt Free Farm.
$ 2�
For violating Condition II. 26. of General Permit AWG100000 by failing
to adequately maintain the cover crop in irrigation fields utilized by Gilt
Free Farm such that they were suitable for land application of animal waste
between May 2, 2018 and September 26, 2018.
�/
$ 2, / 0 0
For violating Condition III. 2.b. of General Permit AWG100000 by failing
01
to install automated lagoon/storage pond waste -level monitors and
recorders on treatment and storage structures at Gilt Free Farm by August
22, 2018.
600
$
For violating Condition III. 91. of General Permit AWG100000. by failing
to submit to DWR the laboratory analysis of a waste sample collected from
the Gilt Free Farms lagoon system following the May 2, 2018 discharge
event.
$
For violating Condition III. 12. of General Permit AWG100000 by failing
to provide the DWR with information documenting, the proper installation
of freeboard measurement apparatus in each of the Gilt Free Farm lagoons.
D 0
$ 3 0
For 2• of' 2 violations of Condition III. 13.e. and f. of General
Permit AWG100000 by failing to notify the Wilmington Regional Office
of noncompliant freeboard levels at Gilt Free Farm prior to site inspections
conducted on May 2, 2018 and September 26, 2018.
$
For of 1 violations of Conditions III. 15. and 16. of General
Permit AWG100000 by failing to provide a press release or public notice
regarding the discharge of 15,000 gallons or more of animal waste to
surface waters or wetlands that occurred on May 2, 2018.
For 2 of 2 violations of Condition V. 2. of General Permit
AWG100000 by failing to maintain waste levels in the lagoons such that
7

the maximum levels specified in the Gilt Free Farm CAWMP were not
exceeded on May 2, 2018 and September 26, 2018.
$ ! 06v TOTAL CIVIL PENALTY
$4,607.966 L7/ Enforcement Costs
$ .3.6& 1, TOTAL AMOUNT DUE
Pursuant to N.C.G.S. 143-215.6A(c), in determining the amount of the penalty I have taken into
account the Findings of Fact and Conclusions of Law and the factors set forth at N.C.G.S. 14313-
282.1(b), which are:
(1) The degree and extent of harm to the natural resources of the State, to the public health, or to
private property resulting from the violation;
(2) The duration and gravity of the violation;
(3) The effect on ground or surface quantity or quality;
(4) The cost of rectifying the damage;
(5) The amount of money save by noncompliance;
(6) Whether the violation was committed willfully or intentional;
(7) The prior record of the violator in complying or failing to comply with programs over which
the Environmental Management Commission has regulatory authority;
(8) The cost to the State of the enforcement procedures.
IV. NOTICE:
I reserve the right to assess civil penalties and investigative costs for any continuing violations occurring
after the assessment period indicated above. Each day of a continuing violation may be considered a
separate violation subject to a maximum $25,000.00 per day penalty. Civil penalties and investigative cost
may be assessed for any other rules and statutes for which penalties have not yet been assessed.
V. TRANSMITTAL:
These Findings of Fact, Conclusions of Law and Decision shall be transmitted to Sheila Graham in
accordance with N.C.G.S. 143-215.6(A)(d).
(Date) eff Poupart, Chief
Water Quality Permitting Section
Division of Water Resources

STATE OF NORTH CAROLINA
COUNTY OF DUPLIN
IN THE MATTER OF ASSESSMENT
OF CIVIL PENALTIES AGAINST
SHEILA GRAHAM
PERMIT NO. AWS310026
DEPARTMENT OF ENVIRONMENTAL
QUALITY
WAIVER OF RIGHT TO AN
ADMINISTRATIVE HEARING AND
STIPULATION OF FACTS
FILE NO. DV-2019-0096
Having been assessed civil penalties totaling $43,607.96 for violation(s) as set forth in the
assessment document of the Division of Water Resources dated, November 7, 2019, the
undersigned, desiring to seek remission of the civil penalty, does hereby waive the right to an
administrative hearing in the above -stated matter and does stipulate that the facts are as alleged in
the assessment document. The undersigned further understands that all evidence presented in
support of remission of this civil penalty must be submitted to the Director of the Division of Water
Resources within thirty (30) days of receipt of the notice of assessment. No new evidence in
support of a remission request will be allowed after thirty (30) days from the receipt of the notice
of assessment.
This the day of , 2019
Signature
ADDRESS
TELEPHONE

JUSTIFICATION FOR REMISSION REQUEST
Case Number: DV-2019-0096
Assessed Party: Sheila Graham
Permit No.: AWS310026
County: Duplin
Amount assessed: $43,607.96
Please use this form when requesting remission of this civil penalty. You must also complete the
"Request For Remission, Waiver of Right to an Administrative Hearing, and Stipulation ofFacts"
form to request remission of this civil penalty. You should attach any documents that you believe
support your request and are necessary for the Director to consider in determining your request for
remission. Please be aware that a request for remission is limited to consideration of the five
factors listed below as they may relate to the reasonableness of the amount of the civil penalty
assessed. Requesting remission is not the proper procedure for contesting whether the violation(s)
occurred or the accuracy of any of the factual statements contained in the civil penalty assessment
document. By law [NCGS 133-215.6A(f)] remission of a civil penalty may be granted when one
or more of the following five factors applies. Please check each factor that you believe applies to
your case and provide a detailed explanation, including copies of supporting documents, as to why
the factor applies (attach additional pages as needed).
(a) one or more of the civil penalty assessment factors in NCGS 143B-282.1(b) were
wrongfully pplied to the detriment of the petitioner (the assessment factors are
included in the attached penalty matrix and/or listed in the civil penalty assessment
document);
(b) the violator promptly abated continuing environmental damage resulting from the
violation (i.e., explain the steps that you took to correct the violation and prevent
future occurrences);
(c) the violation was inadvertent or a result of an accident (i.e., explain why the
violation was unavoidable or something you could not prevent or prepare for);
(d) the violator had not been assessed civil penalties for any previous violations;
(e) payment of the civil penalty will prevent payment for the remaining necessary
remedial actions (i. e., explain how payment of the civil penalty will prevent you
from performing the activities necessary to achieve compliance).
EXPLANATION:
\Rem. req.

ROY COOPER
Governor
MICHAEL S. REGAN
Secretary
LINDA CULPEPPER
Director
NORTH CAROLINA
Environmental QuaUty
August 28, 2019
CERTIFIED MAIL - #70081300 00001124 2142
RETURNRECEIPT REQUESTED
Sheila Graham
Gilt Free Farms
353 Blackmore Road
Warsaw, North Carolina 28398
Subject: National Pollutant Discharge Elimination
System (NPDES) Permit Requirement
Facility Number: AWS310026
Dear Ms. Graham:
According to our records, your facility was assessed for a discharge of wastewater to the waters
of the state that occurred on May 2, 2018. As a result, according to the North Carolina General
Statutes §143-215.1, 40 Code of Federal Regulations §122.23, and the Memorandum of
Agreement between North Carolina and the U.S. Environmental Protection Agency, you are
required to apply for coverage under an NPDES permit.
Within 90 days of receipt of this letter, complete and return the attached form, "NPDES
General Permit Application— Existing Animal Waste Operations." Please carefully follow
the instructions on the form. If you wish to apply for an Individual NPDES Permit instead of a
General Permit, please contact us and we will forward you.that application. Two copies of your
complete Certified Animal Waste Management Plan are required with the permit
application. Please refer to the checklist on page two of the application to be sure that all
necessary documents are submitted with the application.
A copy of the NPDES General Permit may be downloaded at our website:
http://deq.nc.gov/about/divisions/water-resources/water-quality-re iog nal-operations/afo
If it is your opinion that your facility should not be required coverage under an NPDES permit,
please provide written justification (such as change in ownership and management) so that the
Division can make appropriate determination to your situation.
Continued...
E
North Carolina Department of Environmental Quality I Division of Water Resources
_ 512 North Salisbury Street 11636 Mail Service Center I Raleigh, North Carolina 27699-1636
��*v�mIft 919.707.9000

Failure to submit the documentation as required may subject your facility to a civil penalty and
other enforcement actions for each day the facility is operated following the due date.
If you have any questions about the NPDES permit or the enclosed application, please feel free
to contact the Animal Feeding Operations Program staff at [phone].
Sincerely,
Jeff Poupart, Chief
Water Quality Permitting Section
Division of Water Resources
CC: Wilmington Regional Office; Water Quality Regional Operations Section
Duplin County Soil and Water Conservation District
Facility File (AWS310026)

DIVISION OF WATER RESOURCES
CIVIL PENALTY ASSESSMENT FACTORS
Violator:
County:
Case Number:
Permit Number:
Sheila Graham
Du lin
DV-2019-0096
AWS310026
ASSESSMENT FACTORS
1) The degree and extent of harm to the natural resources of the State, to the public health, or to private
property resulting from the violation;
Approximately 15,000 gallons ran off into UT of Turkey Creek. Another runoff incident had waste going into a
pond on the farm which also drained to a UT of Turkey Creek. Minor amounts of leaking waste from valve and
collection pipe in the waste management system to surrounding areas.
The waters affected by this are class C, Sw. Its stream index is 18-68-2-6. Class "C" is defined as waters protected
for uses such as secondary recreation, fishing, wildlife, fish consumption, aquatic life including propagation,
survival and maintenance of biological integrity, and agriculture. Secondary recreation includes wading, boating,
and other uses involving human body contact with water where such activities take place in an infrequent,
unorganized, or incidental manner. "SW" is for swamp waters and its defined as a supplemental classification
intended to recognize those waters which have low velocities and other natural characteristics which are different
from adjacent streams.
2) The duration and gravity of the violation (s);
Owner has had 2 over applications in 2018 and one discharge of approximately 15, 000 gallons to a UT of Turkey
Creek. No notification was received. Lagoon freeboards levels have been in and out of noncompliance without
always noting D WR. Dike wall and field conditions have been mentioned throughout the past several years of
compliance history with this facility. Contact information for technical assistance has been provided multiple times
a year for several years.
Owner was informed via email on 212312017 that waste level gauge was probably not reading correct level and
needed to be reset to read the correct level. Leak was discovered during inspection and owner asked to fix
immediately. At time of most recent follow up inspection on 71712017, the gauge had not been reset. Freeboard
levels were not compliant during inspection on 412412017. Corrective actions on collection pipe and valve found
to be leaking on 212312017 were not confirmed until 71712017. Leak became a problem again twice in 2018 before
getting fixed. Trees/shrubs on dike wall have been mentioned many times during inspections as well. Crops
condition has also been mentioned many times. Freeboard issues are a constantproblem, which is why auto waste
level recorders were required to be installed, which have not been.
3) The effect on ground or surface water quantity or quality or on air quality;
15, 000 gallons discharged into a UT of Turkey Creek. Facility had another runoff incident into a pond on the farm
that also drains to a UT of Turkey Creek. Minor amounts of leaking waste from valve and collection pipe in the
waste management system. Over application on fields and hydraulic overload on both incidents.
4) The cost of rectifying the damage;
The exact cost is unknown, but costs incurred likely include an irrigation valveffitting for pump connection.
Resetting the waste level gauge is a service provided by Duplin Soil and Water by request for free or that service
can be acquired through their Integrator or private firm. Costs of a waste analysis for discharge is minimal,
probably less than 10$ at NC Lab. Some herbicide and a couple extra hay cuttings to manage field better. They
rely on a third party to cut hay and do not graze. Cost of installing auto waste level gauges as required. Cost of
operating at required attentiveness and dedication required to become and remain compliant with the CAWMP for
this facility.
5) The amount of money saved by noncompliance;
The amount of money saved is not known. See # 4 above.

Items to consider: Irrigate more in shorter events to allow proper infiltration at agronomic rates; diesel fuel and
time for OIC to operate these extra pumping events to keep freeboard levels compliant; PVC cap and an irrigation
valve/fitting for pump connection; cost to operate and maintain the facility and its structures properly; or hire a
consultant/farm manager.
6) Whether the violation was committed willfully or intentionally;
Wilmington Regional office staff with the Division of Water Resources (DWR), as well as State/Local Soil and Water
staff have tried to help farm owners/staff on numerous occasions over the past many years to assist the facility with
addressing various issues and achieving compliance.
Although these violations were not viewed necessarily as willful and intentional, the owner has not taken advantage
of the assistance provided and addressing the non-compliance issues has been unsuccessful. A lot of these
violations are reoccurring, which seems to be due to a lack of concern or care.
This facility has continued to have compliance issues despite having a new OIC.
7) The prior record of the violator in complying or failing to comply with programs over which the
Environmental Management Commission has regulatory authority;
Since 2011, this permittee has been assessed $18,524.30 in civil penalties.
04/14/2010—NOVREF2010-PC-0365—PC-2010-0046—$2162.66casepenalties. No irrigation records to explain
10 inch drop in lagoon 1; Inadequate freeboard record keeping for freeboard levels; Inadequate freeboard level
recorded for lagoon 2.
1012112010 — NOV 2010-PC-1106 — Failure to maintain waste levels in accordance with CAWMP.
0410812011 —NOVREF 2011-PC-0263 — PC-2011-0035 — $1192. 71 case penalties. Failure to record all irrigation
events.
0712612011— Show Cause Meeting —Attend Irrigation Certification Type A' Animal Waste course again.
0212512014 — NOVREF 2014-PC-0043 — Failure to notify WIRO of freeboard violation; Failure to maintain waste
levels in accordance with CAWMP.
11/1712015—NO VREF- PC-2015-0041— $5378.29 case penalties. Failure to maintain waste levels in accordance
with CAWMP; Failure to irrigate at land application rates in which would not result in runoff or ponding. Failure
to maintain collection, treatment, and storage facilities.
0810512016 — NOV 2016-PC-0386 - Failure to maintain waste levels in accordance with CAWMP.
0511912017 — NOV-201 7-PC-02 72 — PC-2017-0032 - $9790. 64 case penalties - Failure to maintain waste levels
in accordance with CAWMP. Failed to properly operate and maintain, collection, treatment, and storage
facilities, and land application equipment and fields at all times. Failed to maintain a highly visible waste -level
gauge to mark the level of waste in each lagoon/storage pond. Failed to conduct a sludge survey in all lagoons
every year.
8) The cost to the State of the enforcement procedures.
$4,607.96
11 ;11�
Date
2
Jeff Poupart