800016_Enforcement (Letter)_20200703

DocuSign Envelope ID: 09085F9A-69A7-4840-90F7-48A3D2F9330D
ROY COOPER
Governor
MICHAEL S. REGAN
Secretary
LINDA CULPEPPER
Director
NORTH CAROLINA
Environmental Quality
July 3, 2020
CERTIFIED MAIL - # 7017 0190 00001635 4556
RETURN RECEIPT REQUESTED
Jeffery McNeely
G & M Milling Co Inc.
Osborne Dairy
4000 Taylorsville Hwy.
Statesville, NC 28625
Dear Mr. McNeely,
ECOV /NC N /DVI
s 21
VUQ€ O
,000RESVILLE REGIONAL OrFI1 E
SUBJECT: Assessment of Civil Penalties for Violation(s) of
15A NCAC 2T .0105(e)(2)
Farm # 80-0016,
Rowan County
Enforcement File No. DV-2020-0050
This letter transmits notice of a civil penalty assessed against Jeffery McNeely/G&M Milling Co Inc in
the amount of $5,000.00 and $126.93 in investigative costs, for a total of $5,126.93. 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 D. Garoma
Animal Feeding Operations Program
Division of Water Resources
1636 Mail Service Center
Raleigh, North Carolina 27699-1636
North Carolina Department of Environmental Quality I Division of Water Resources
512 North Salisbury Street 1 1636 Mail Service Center I Raleigh, North Carolina 27699-1636
t.KX2TH �\i
e 'mrn tw� 919.707,9000

DocuSign Envelope ID: C9085F9A-69A7-4840-90F7-48A3D2F9330D
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 D. 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

DocuSign Envelope ID: C9085F9A-69A7-4840-90F7-48A3D2F9330D
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 §150B-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 Ramesh Ravella at [phone].
Sincerely,
DocuSi®ned by:
SFB198649DD2478...
Jeffrey Poupart, Chief
Water Quality Permitting Section
Division of Water Resources
ATTACHMENTS
cc: Mooresville WQROS Regional Supervisor w/ attachments
File # DV-2020-0050 w/ attachments
Central Files w/ attachments
Laserfiche 800016

DocuSign Envelope ID: E6BB76AA-4240-49D9-9799-7EF45AE9BA2B
STATE OF NORTH CAROLINA
COUNTY OF ROWAN
IN THE MATTER OF
JEFFREY MCNEELY
G & M MILLING CO. INC
FOR VIOLATIONS OF CATTLE WASTE
MANAGEMENT SYSTEM PERMIT
AWG200000 PERSUANT TO
NORTH CAROLINA
GENERAL STATUE 143-215.1
NORTH CAROLINA
DEPARTMENT OF ENVIRONMENTAL QUALITY
F,
FILE NO. DV-2020-0050
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. Jeffrey McNeely owns G&M Milling Co. Inc which owns Osborne Dairy located at 385 Hamps
Dairy Rd., Cleveland, North Carolina.
B. G&M Milling Co Inc was issued Certificate of Coverage AWC800016 under General Permit
AWG200000 for Osborne Dairy on October 1, 2014 effective from the date of issuance, with an
expiration date of September 30, 2019.
C. N.C.G.S 143-215.1(a)1 states that "no person shall do any of the following things or carry out
any of the following activities until or unless that person shall have applied for and received a
permit from the Commission and has complied with all conditions set forth in that permit:" (a)
Make any outlets into waters of the State.
D. Condition I.1. of General Permit AWG200000 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 29, 2019 DWR staff received a complaint concerning discharge of animal waste into
unnamed tributary to Third Creek that occurred during the closure process of the waste storage
pond at Osborne Dairy facility. On May 30, 2019 DWR staff observed the discharge and
confirmed that wastewater was discharged from the waste pond and entered the unnamed
tributary to Third Creek.
F. G & M Milling Co. Inc has not notified DWR of the lagoon closure and did not submit Waste
storage pond closure Plan of Action (POA) before starting the closure process as required (Permit
Condition v.3), and DWR staff told facility staff to contact Rowan county SWCD/NRCS to
complete and submit a POA.
G. G&M Milling Co Inc had no valid permit for the discharges of animal waste to waters of the state
as described above.

DocuSign Envelope ID: E6BB76AA-4240-49D9-9799-7EF45AE9BA2B
H. Condition III.17. of General Permit AWG200000 states in part that "The Permttee 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: (a) failure of any component of the animal waste management system resulting in a
discharge to ditches, surface waters, or wetlands."
I. G&M Milling Co Inc did not notify DWR of the above described discharge of animal waste.
On February 21, 2020 the Division issued a Notice of Violation (NOV/NOI) with intent to
enforce through the civil penalty assessment process to Jeffrey McNeely/G&M Milling Co Inc
identifying violations of N.C.G.S. 143-215.1 and Permit No. AWC800016. The violations
include the unlawful discharge of wastes to waters of the State and Failure to notify DWR of
emergency situations.
K. The NOV/NOI was sent by certified mail, return receipt requested and received on February 24,
2020.
L. The cost to the State of the enforcement procedures in this matter totaled $126.93.
Based upon the above Findings of Fact, I make the following:
II. CONCLUSIONS OF LAW:
A. G&M Milling Co Inc is a "person" within the meaning of N.C.G.S. 143-215.6(A) pursuant to
N.C.G.S. 143-212(4).
B. A permit for an animal waste management system is required by N.C.G.S. 143-215.1.
C. Unnamed tributary to Third Creek constitutes waters of the State within the meaning of G.S.
143-215.1 pursuant to G.S. 143-212(6).
D. The above cited discharge described in Findings of Fact I. E. above violated N.C.G.S. 143-
215.1(a) l by making an outlet into waters of the State without a Permit.
E. The above cited discharge violates Condition No. I.1 of the General Permit AWG200000
requiring that no animal waste be discharged to surface waters and /or wetlands of the state.
F. The above cited failure to notify DWR of emergency situations violates Condition III. 17.a. of
General Permit AWG20000 requiring regional notification.
G. N.C.G.S. 143-215.6A (b) provides that if any failure to act as required by the rules is continuous,
a civil penalty of not more than $25,000.00 per violation may be assessed for each day the
violation continues.
H. N.C.G.S. 143-215.3(a)(9) provides that the reasonable costs of any investigation, inspection or
monitoring survey may be assessed against a person who violates any regulations, standards, or
limitations adopted by the Environmental Management Commission or violates any terms or
conditions of any permit issued pursuant to N.C.G.S. 143-215.1, or special order or other
document issued pursuant to N.C.G.S. 143-215.2.
I. 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 in this
matter.

DocuSign Envelope ID: E6BB76AA-4240-49D9-9799-7EF45AE9BA2B
Based upon the above Findings of Fact and Conclusions of Law, I make the following:
I. DECISION:
Accordingly, Jeffrey McNeely/G&M Milling Co Inc, owner of Osborne Dairy at the time of the
noncompliance is hereby assessed a civil penalty of:
$4000.00 For making an outlet to the waters of the State without a permit as required
by G.S. 143-215.1 and in violation of Condition I.1. of the General Permit
AWG200000.
$1000.00 For violations of Condition III. 17.a. of General Permit AWG200000 by
failing to notify DWR of failure of animal waste management system
resulting in a discharge to Waters of the State.
$5000.00 TOTAL CIVIL PENALTY which is percent of the maximum
penalty authorized by N.C.G.S. 143-215-6A
$126.93 ENFORCEMENT COSTS
$5126.93 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 water quantity or quality or on air quality;
(4) The cost of rectifying the damage;
(5) The amount of money saved by noncompliance;
(6) Whether the violation was committed willfully or intentionally;
(7) The prior record of the violator in complying or failing, to comply with programs over
which the Environmental Management Commission has regulatory authority; and
(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 Jeffrey
McNeely/G&M Milling Co Inc, in accordance with N.C.G.S. 143-215.6(A)(d).
DocuSigned by:
9/13/2020 E
8F819B649DD2478...
(Date) Jeffrey Poupart, Chief
Water Quality Permitting Section
Division of Water Resources

STATE OF NORTH CAROLINA DEPARTMENT OF ENVIRONMENTAL
QUALITY
COUNTY OF ROWAN
IN THE MATTER OF ASSESSMENT ) WAIVER OF RIGHT TO AN
OF CIVIL PENALTIES AGAINST ) ADMINISTRATIVE HEARING AND
STIPULATION OF FACTS
G & M Milling Co. Inc. )
Jeffrey McNeely )
PERMIT NO. AWC800016 ) FILE NO. DV-2020-0050
Having been assessed civil penalties totaling $5,126.93 for violation(s) as set forth in the
assessment document of the Division of Water Resources dated, July 3, 2020, 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 , 2020
Signature
ADDRESS
TELEPHONE

JUSTIFICATION FOR REMISSION REQUEST
Case Number: DV-2020-0050 County: Rowan
Assessed Party: G & M Milling Co. Inc./Jeffrey McNeely
Permit No.: AWC800016 Amount assessed: $5,126.93
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 of Facts"
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 penally 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.