NC0051969_Compliance/Settlement Agreement_20200925

ROY C:OOPEP,
Governor
MICHAEL S. REGAN
Secretary
S, DANIEL SMITH
Director
Mr. Charles E. Trefzger
Castle Haynes Health Holdings LLC
P,O. Box 2568
Hickory, North Carolina 28603-2568
NORTH CAROLINA
Environmental Quality
September 03, 2020
Subject: Compliance Agreement for NPDES Permit NCO051969
Dear Mr. Trefzger:
Please find attached the proposed Compliance Agreement between Castle Haynes Health
Holdings LLC and the North Carolina Environmental Management Commission. This
Agreement includes a settlement of outstanding civil penalties and unassessed violations
for a total amount of $8,097.30, Once this document is reviewed and signed by Castle
Haynes Health Holdings LLC, please return an original signed version to:
Attn: John Hennessy, Supervisor
Compliance & Expedited Permitting
NC Division of Water Resources
1617 Mail Service Center
Raleigh, NC 27699-1617
Upon receipt of a signed document from Castle Haynes Health Holdings LLC, the Division
of Water Resources will sign and complete the Agreement. Once the agreement is
completed by the Division, a check for the agreed upon settlement amount will be due to
the above address within fifteen days.
If you have questions concerning the settlement agreement, please contact Emily DC]Duco
via email at [[e-mail]] or call 919-707-9125.
Sincerely,
(fa,43 6cr—
John Hennessy, Supervisor
Compliance and Expedited Permitting
Division of Water Resources
cc: NPDPS Unit
ec: Laserfiche
Nikki Johnson (niohnsongaigsenior.com)
Wilmington Regional Office
� � North Carolina Department of Environmental Quality I Division of Water Resources
512 North Salisbury Street 1 1617 Mail Service Center I Raleigh, North Carolina 27699-1617
e�iaimnnta nroenmioun¢` �►'"� 919.707,9000

NORTH CAROLINA
ENVIRONMENTAL MANAGEMENT
COUNTY OF NEW HANOVER
IN THE MATTER OF
NORTH CAROLINA ) COMPLIANCE AGREEMENT
NPDES PERMIT NC0051969 )
HELD BY )
CASTLE HAYNE HEALTH HOLDINGS LLC )
Pursuant to provisions of North Carolina General Statute § 143-215.3(a)(6), this Compliance Agreement
is entered into by Castle Rayne Health Holdings LLC, herein referred to as the Permittee, and the North
Carolina Environmental Management Commission, an agency of the State of North Carolina created by
N.C. General Statute § 14313-282, and hereinafter referred to as the Commission:
The Permittee and the Commission hereby agree to the following findings:
(a.) The Permittee holds North Carolina NPDES permit NC0051969 for operation of the Castle
Hayne Health Holdings LLC's Castle Creek Memory Care W WTP and for making an outlet
therefrom for the discharge of treated effluent to an unnamed tributary to Prince George
Creek, Class C; Sw waters of this State in the Cape Fear River Basin.
(b.) Effluent limits included as terms of NPDES permit NC0051969 have been established as those
concentrations of pollutants that may be discharged into the receiving stream without causing
applicable water quality standards to be contravened.
(c.) The Castle Creek Memory Care W WTP has been noncompliant with NPDES permit
NC0051969 in the manner and to the extent described in Attachment A (Table 1) to this
Agreement. Reported violations of effluent limits have persisted from October 2018 through
the May 2020 reporting period. Further noncompliance with permit limits is anticipated for a
brief period while solutions are being evaluated.
(d.) Castle I-Iayne Health Holdings LLC was assessed penalties for these violations and continues
to have outstanding fees totaling $6,783.00. Monitoring reports from October 2019,
December 2019, and January through May 2020 also included violations which the regional
office has not yet issued penalties for. Anticipated penalty amounts for these unassessed
violations total an additional 16,712.50 712.50 (not including enforcement costs) Once assessed, these
additional penalties would bring the total outstanding balance to $13,495.50 (Attachment A —
Table 1).
(e.) Chloride effluent limit violations could be associated with the water softener, which contains
Sodium Chloride, used to remove iron from the adult care home's well water.
(f) Copper effluent limit violations could be associated with the copper piping in the facility
leaching into the wastewater, which may be exacerbated by the softened water.

Castle Hayne Health Holdings, LLC Compliance Agreement
NC0051969
p. 2
2. Based upon the above findings, the Permittee and the Commission agree to the implementation of
the following schedule:
(a.) The Permittee will continue discharging and monitoring effluent parameters as outlined in
NPDES permit NC0051969.
(b.) To address high chloride levels, the permittee plans to route softener backwash to a storage
tank, to be disposed of in a combination of land application, off -site hauling, and treatment.
(c.) The permittee will complete Phase I of copper removal efforts by the required completion
date, May 17, 2021 (Attachment A, Table 2). If any of the proposed anti -corrosive chemicals
are found to be successful in achieving compliance with permit limits, Phase 1 may be
completed without the remainder of the proposed chemical trials taking place.
(d.) If Phase I is unsuccessful, the permittee must complete Phase II of copper removal efforts by
the required completion date, December 14, 2021 (Attachment A, Table 2).
3. In order to facilitate resolution of the matters of outstanding civil penalties and unassessed
violations documented in Attachment A (Table 1), the Commission and Castle Hayne Health
Holdings LLC agree to settle the above described penalties and violations, for the total amount of
$8,097.30 (60% of unpaid fees, including penalties not yet assessed through May 2020). Payment
shall be made by check made payable to the North Carolina Department of Environmental Quality
within 15 days of the execution of this Agreement, sent to the following address:
Attn: John Hennessy, Supervisor
Compliance & Expedited Permitting Branch
NC Division of Water Resources
1617 Mail Service Center
Raleigh, NC 27699-1617
Full payment of the settlement amount shall constitute complete satisfaction of all outstanding civil
penalties assessed prior to the execution of this Agreement and resolve all unaddressed violations
occurring up to the end of the May 2020 reporting period.
4. Nothing in this Agreement relieves the Permittee of its duty to abide by the terms of NPDES permit
NC0051969. Noncompliance with the terms of the NPDES may subject the Permittee to the
assessment of civil penalties during the time this Agreement is in effect. However, the Division will
use discretion in its consideration of civil penalty assessments for violations of permit limits that
occur during the life of the Agreement.
5. Failure to comply with the terms of this Agreement may subject the Permittee to the assessment of
additional civil penalties pursuant to Part II, Section B (2.) (the "Duty to Mitigate" condition) of
NPDES permit NC0051969.
6. Because this is an Agreement between the Commission and the Permittee, neither party will file a
petition for a contested case or for judicial review concerning its terms.
7. The Permittee may request an extension/modification to this Agreement. Such request must be
made in writing to both the Wilmington Regional Office, Water Quality Operations Section and the
Division of Water Resources' Central Office. The request must include reasons for the
extension/modification and state when compliance with the NPDES permit will be achieved. Any
extension/modification must be approved in writing by the Director of the Division of Water

Castle Hayne Health Holdings, LLC Compliance Agreement
NCO051969
p. 3
Resources or his designee in order to be effective.
This Agreement shall expire 12/15/2021.
If project completion and compliance with permit requirements is not achieved by the expiration of
this agreement, the remaining fees settled in this agreement ($5,398.20) will be due, along with any
new penalties resulting from continued noncompliance.
For the CAtle ne �calyh HgAdings LLC
Lete� / /�Date 1;0.410
harles E. Trefzger Jr.
Owner
Castle Hayne Health Holdings LLC
For the North Carolina Environmental Management Commission
IDocuSigned by: II
l mUa. Smtt l 9/25/2020
F3ARA1dAC7D 434 Date
(for) : Jeffrey O. Poupart Morel l a Sanchez King
Section Chief
Water Quality Permitting Section
North Carolina Division of Water Resources
for the Chair of the Commission

ATTACHMENT A
Compliance Agreement
Castle Hayne AL Holdings, LLC — NPDES Permit NCO051969
Table 1 Summary of penalties assessed against Castle Hayne AL Holdings, LLC for violation of permit effluent limits from
May-20
n/a
$500.00
n/a
not assessed
$500.00*
Apr-20
n/a
$500.00
n/a
not assessed
$500.00*
Mar-20
n/a
$1,300.00
n/a
not assessed
$1,300.00*
Feb-20
n/a
$1,300.00
n/a
not assessed
$1,300.00*
Jan-20
n/a
$1,200.00
n/a
not assessed
$1,200.00*
Dec-19
n/a
$975.00
n/a
not assessed
$975.00*
Nov-19
LV-2020-0049
$2,250.00
$141.00
$2,391.00
$2,391.00
Oct-19
n/a
$937.50
n/a
not assessed
$937.50*
Sep-19
LV-2020-0038
$1,375.00
$141.00
$1,516.00
$0.00
Aug-19
LV-2019-0314
$800.00
$141.00
$941.00
$941.00
Jul-19
LV-2019-0223
$450.00
$137.75
$587.75
$587.75
Jun-19
LV-2019-0213
$1,300,00
$137.75
$1,437.75
$1,437.75
Apr-19
LV-2019-0164
$1,000,00
$137.75
$1,137.75
$0.00
Mar-19
LV-2019-0151
$900.00
$137.75
$1,037.75
$1,037.75
Jun-18
LV-2018-0218
$250.00
$137.75
$387.75
$387.75
Total Outstanding
$6,783.00
Total Outstanding
$13,495.50
(including
unasessed
violations)
*No penalties have yet been issued for limit and monitoring violations in monitoring reports from the months of October
2019 and December 2019-May 2020. The anticipated penalty amounts have been calculated by Wilmington Regional Offices
and are included in this compliance agreement.

Table 2 Timeline proposed by permittee in request for compliance agreement dated June 10, 2020, adjusted to include a 45-
day extension for project end dates. This compliance agreement requires the Phase 1 chemical injection trials to be
completed on May 17, 2021. If Phase 1 is unsuccessful, completion of Phase 2 must acheived by December 14,
2021. As long as Project End dates are achieved, target completion dates within phases may remain flexible.
Compliance Agreement completed by agency
Contract Plumber for System Improvement
Schedule System Improvement Work Date
Obtain Supplies for Improvement Work
Complete System Improvements
If necessary, identify additional chemical(s) and repeat approval process
Complete Trial of Sodium Hexametaphosphate
Complete Trial of Sodium Silicate
Development/submission of Precipitation or Filtration Plan (P/F)
Approval of P/F Plan
Hiring of Technician (Plumber or Specialist)
Schedule System Improvement
Obtaining Supplies for Wastewater P/F Plan
Installation of Wastewater
8/15/2020
9/14/2020
9/21/2020
9/29/2020
10/5/2020
10/10/2020
11/30/2020
2/8/2020
6/18/2021
8/17/2021
9/16/2021
9/23/2021
10/1/2021
10/15/2021