20050813 Ver 4_Notice of Violation_20101021

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NCDENR
North Carolina Department of Environment and Natural Resources
Beverly Eaves Perdue
Governor
Division of Water Quality
Coleen H. Sullins
Director
Dee Freeman
Secretary
October 21, 2011
CERTIFIED MAIL 70110110 0000 3789 0163
RETURNED RECEIPT REQUESTED
Blue Marlin, LLC
Attn: Gordon Frieze
PO Box 1328
Wrightsville Beach, NC 28480
CERTIFIED MAIL 7011 0110 0000 3789 0170
RETURNED RECEIPT REQUESTED
Stone Bay Partners, LLC
Savvy Homes, LLC
Attn: Ruth Govinez
6030 Creedmoor Rd Ste 101
Raleigh, NC 27612
Notice of Violation and Recommendation for Enforcement
401 Water Quality Certification Conditions Violations,
Wetland Standard Violations,
NCG 010000 Condition Violations
Mimosa Bay Subdivision Phase 5, Sneads Ferry
Lots 10 and 11 and Stormwater ponds
DWQ Project # 05 0813 V4
Onslow County
Dear Mr. Frieze and Ms. Govinez:
On December 23, 2010, the Division of Water Quality (DWQ) issued 401 Water Quality certification
under the General Certification No. 3821 (DWQ project # OS 0813 V4) which corresponds to the section
404 nationwide Permit No. 29 issued by the US Army Corps of Engineers (USAGE) on October 14,
2010). The Section 404 Permit and corresponding 401 Certification authorized the discharge of 0.1729
acres of jurisdictional wetland, 0.0378 acres of open waters and temporarily impact 10 linear feet of
stream for Phase V of Mimosa Bay subdivision.
Wilmington Regional Office
127 Cardinal Drive Extension Wilmington, NC 28405
Phone: [phone] /FAX: [phone]
Internet: www.ncwaterguality.org
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Page Two
Blue Marlin, LLC
Attn: Gordon Frieze
Stone Bay Partners, LLC
Savvy Homes, LLC
Attn: Ruth Govinez
DWQ Project # OS 0813 V4
October 21, 2011
Jean Conway and Joanne Steenhuis of the Division of Water Quality (DWQ) Wilmington Regional
Office conducted site inspections of your project, on September 30, 2011 and October 3, 2011,
respectively. The Mimosa Bay Phase V is located off Old Folkstone Road adjacent to Mill Creek in
Sneads Ferry, in Onslow County.
During the inspections, it was noted that a wetland between Lots 10 and 11 had been impacted and the
pipe in the wetland crossing was not installed according to the permitted plan. In addition, Ms. Conway
found that the silt fences adjacent to the stormwater ponds were full of sediment and had not been
properly maintained and have the potential to fail causing additional impacts to wetlands.
The DWQ file review showed that a 401 for the Phase V of Mimosa Bay was issued on December 23,
2010 and the US Army Corps of engineers issued their Nationwide 29 permit on October 14, 2010. In
addition, the DWQ file review confirms that there were additional impacts to wetlands, which were not
covered under the 401 Certification issued to Blue Marlin, LLC. As a result of the site inspections and
file review, the following are the details of the observed violations:
1) 401 Water Quality Certification conditions violations;
2) Wetland standard violations;
3) NCG 010000 permit condition violations
Item 1. 401 Water Quality Certification conditions violations
General Certification #3821 (DWQ # 2005 0813 V4)
On December 23, 2010 a 401 Water Quality Certification (DWQ # OS 0813 V4) was issued for the
subject project. The following items are issues that coincide with the conditions within the certification:
Condition 1. No Impacts Beyond Those Authorized in the Written Approval or Beyond
the Threshold of Use of this Certification (GC # 3821)
No waste, spoil, solids or fill of any kind shall occur in wetlands, waters, or riparian areas
beyond the footprint of the impacts depicted in the Pre-Construction Notification (PCN) and
authorized in the written approval from the Division, including incidental impacts. All
construction activities, including the design, installation, operation, and maintenance of sediment
and erosion control Best Management Practices, shall be performed so that no violations of
state water quality standards, statutes, or rules occur.
s

The wetland area between Lots # 10 and 11 have been graded/grubbed which is beyond the
footprint of impacts depicted in the PCN.

Page Three
Blue Marlin, LLC
Attn: Gordon Frieze
Stone Bay Partners, LLC
Savvy Homes, LLC
Attn: Ruth Govinez
DWQ Project # OS 0813 V4
October 21, 2011
Condition 2. Standard Erosion and Sediment Control Practices (GC # 3821 and approval letter)
Erosion and sediment control practices must be in full compliance with all specifications
governing the proper design, installation and operation and maintenance of such Best
Management Practices in order to protect surface water standards:
a. The erosion and sediment control measures for the project must be designed, installed,
operated, and maintained in accordance with the most recent version of the North
Carolina Sediment and Erosion Control Planning and Design Manual.
b. The design, installation, operation, and maintenance of the sediment and erosion control
measures must be such that they equal, or exceed, the requirements specified in the most
recent version of the North Carolina Sediment and Erosion Control Manual. The
devices shall be maintained on all construction sites, borrow sites, and waste pile (spoil)
projects, including contractor-owned or leased borrow pits associated with the project.
The last inspection on record (August 3, 2011) from the Division of Land Quality shows that the
site is NOT in compliance and that the silt fences at the toe of the pond slopes and building lots
need to be maintained.
Condition 4 and 7. Construction Stormwater Permit NCG 01000 (GC # 3821 and approval
letter)
Upon approval of an Erosion and Sedimentation Control Plan issued by the Division of
Land Resources (DLR) or a DLR delegated local erosion and sedimentation control
program, an NPDES General stonnwater permit (NCG 010000) administered by DWQ is
automatically issued to the project. This General permit allows stormwater to be
discharged during land disturbing construction activities as stipulated by the conditions in
the permit. If your project is covered by the permit [applicable to construction projects
that disturb one (1) or more acres], full compliance with permit conditions including the
sedimentation control plan, self monitoring, record keeping and reporting requirements
are required.
The DLR has issued multiple permits for this project; a permit for Phase V was issued on
August 18, 2010. Per the DLR inspection report the project is not in full compliance.
Condition 5. Protective Fencing (approval letter)
The outside wetland or water boundary and along the construction corridor within these
boundaries approved under the authorization (December 23, 2010) shall be clearly
marked with orange warning fencing (or similar high visibility material) for the areas that
have been approved to infringe within the wetland or water prior to any land disturbing.

Page Four
Blue Marlin, LLC
Attn: Gordon Frieze
Stone Bay Partners, LLC
Savvy Homes, LLC
Attn: Ruth Govinez
DWQ Project # OS 0813 V4
October 21, 2011
Silt fence was not seen identifying the wetlands around lots 10 and 11 and some of the wetlands
had been hydro axed at the back of the lots as well as cleared and graded between the two lots.
The silt fencing around the wetlands is not consistent within the subdivision, there are areas
where the silt fence is present around the wetlands and other areas it is absent.
Condition 13. Placement of Culverts and other Structures in Waters and Wetlands (GC # 3821)
Installation of culverts in wetlands must ensure continuity of water movement and be
designed to adequately accommodate high water or flood conditions. Additionally, when
roadways, causeways or other fill projects are constructed across FEMA-designated
floodways or wetlands, openings such as culverts or bridges must be provided to maintain
the natural hydrology of the system as well as prevent constriction of the floodway that
may result in destabilization of streams or wetlands.
The water coming from the wetlands toward the back of Lot # 11 was rerouted towards the
intersection where it was piped under the road. The pipe was not installed at the location that
was permitted and shown on the drawings in the 401 certification issued on December 23, 2010.
Item 2. Wetland Standard Violation
Title 15A North Carolina Administrative Code 02B .0231 (b) (1) and (5) states:
1) Liquids, fill or other solids or dissolved gases may not be present in amounts which may
cause adverse impacts on existing wetland uses;
5) Hydrological conditions necessary to support the biological and physical characteristics
naturally present in wetlands shall be protected to prevent adverse impacts on:
C) The chemical, nutrient and dissolved oxygen regime of the wetland;
D) The movement of aquatic fauna;
F) Water levels or elevations.
The wetland area between lots 10 and 11 has been impacted by the removal of stumps and root
mat and has been graded and pine straw put down. In addition, the pipe was not installed in
the location as proposed and the water from the wetlands now drains to an upland adjacent to
the road by the bridge and hence does not keep the wetland hydrology intact. The additional
wetland impacts, in this area, were not included within the 401 Certification approval letter
issued on December 23, 2010.

Page Five
Blue Marlin, LLC
Attn: Gordon Frieze
Stone Bay Partners, LLC
Savvy Homes, LLC
Attn: Ruth Govinez
DWQ Project # OS 0813 V4
October 21, 2011
Item 3. NCG 010000 Permit Condition Violations
Title 15A North Carolina Administrative Code 2H .0100 requires adherence to the approved Erosion and
Sedimentation Control Plan approved August 18, 2010, by the Division of Land Resources, Land Quality
Section, and is an enforceable component of the General NPDES Construction Stormwater Permit
(NCG010000).
The following NCGO10000 violations were noted:
Failure to Follow the Approved Erosion and Sedimentation Control Plan (Part 1. Section A) Per the
DWQ inspection report for September 30, 2011 and as verbally noted (in comments section) during the
Division of Land Resources (DLR) inspection for August 3, 2011.
Failure to Properly Maintain the Control Measures (Part I. Section C)
Per the DWQ inspection report for September 30, 2011 and as verbally noted (in comments section) during
the Division of Land Resources (DLR) inspection for August 3, 2011.
Rain Gauge (Part I. Section B. No. 1.)
A rain gauge was not observed on site at the time of DWQ September 30, 2011 inspection.
Rain Gauge Data (Part I. Section B. No. 2.)
Rain gauge data, measured daily, was not on site and available for review at the time of DWQ
September 30, 2011 inspection.
Minimum Monitoring and Record Keeping (Part I. Section B. No. 3)
Inspection records of erosion & sedimentation control measures and stormwater discharges,
collected weekly and after every half-inch or greater rain event, were not on site and available for
review at the time of DWQ September 30, 2011 inspection.
This Office also requires that you respond to this letter in writing within three weeks of receipt of this
Notice. Please note, these violations and any future violations are subject to civil penalty assessment of
up to $25,000.00 per day for each violation. Your response should be sent to both this office at the
letterhead address and to the attention of Ms. Katie Merritt at the Wetlands and Stormwater
Branch, Compliance and Assistance Unit, 1617 Mail Service Center, Raleigh NC, 27699-1617.
Your response in writing should address the following items:
1. An explanation of why these impacts occurred, include an as-built for Lots 10 and 11 that
identifies the additional amount of wetlands impacted;
2. A restoration and monitoring plan for the additional wetland impacts that have occurred that
is to include the removal of the sediment, reinstalling pipe under the road to keep the wetland
hydrology intact and tree planting for the area that has been impacted;
3. The DWQ has not received a copy of the recorded deed notifications or restrictive covenants
or easements as required by the 401 Certification approval letter Condition #9 and Condition
#17 on GC #3821. Please provide a copy with your response.

Page Six
Blue Marlin, LLC
Attn: Gordon Frieze
Stone Bay Partners, LLC
Savvy Homes, LLC
Attn: Ruth Govinez
DWQ Project # OS 0813 V4
October 21, 2011
4. A plan that outlines how you (Blue Marlin, LLC) plan on keeping additional wetlands
impacts from occurring as you sell off sections of lots to builders and as builders (Savvy
Homes, LLC and Stone Bay Partners, LLC), how you plan on preventing this from
happening in the future. (Savvy Homes had a similar impact to wetlands on a section of lots
they bought at Carolina Forest Subdivision in the Carriage Run Section in Jacksonville.)
5. Please outline a plan as to how you will be maintaining the silt fences, particularly around the
stormwater ponds where the silt fences are filled with sediment and are being used more as a
retaining wall than silt fence. The slopes on these ponds are not stable and the failure of the
silt fences into the adjacent wetlands is highly likely during a major rain event.
6. Please include a copy of your recorded data for the NCG 010000 for the last 6 months (it can
be on a CD or e-mailed to Jean.Conwaynu,ncdenr.gov).
7. A schedule with dates clearly depicting your efforts to become compliant.
The DWQ is working together with the USACE to concurrently help you resolve this issue. The current
cumulative impacts for Mimosa Bay tota10.49397 acres. Any additional impacts may require the
project to be reviewed under the Individual Permit process.
Thank you for your attention to this matter. This Office is considering sending a recommendation for
enforcement to the Director of the Division of Water Quality regarding these issues and any future or
continued violations that may be encountered. Your response to this correspondence will be considered
in this process. Should you have any questions regarding these matters, please contact Joanne Steenhuis
at 910.796.7215.
Sincerely,
,,.
James H. Gregson
Regional Supervisor
Surface Water Protection Section
Attachment -DWQ NCG 010000 Inspection Report
cc: Katie Merritt -Compliance and Assistance Unit
David Bailey -Wilmington Corps of Engineers
Sue McLaughlin - Onslow County Planning
WiRO

Permit: NCR003187 Owner -Facility: Blue Marlin LLC
Inspection Date: 09/30/2011 Inspection Type: Compliance Evaluation Reason for Visit: Routine
DLR or Local Program Inspection Yes No NA NE
# Is this inspection related to a DLR /local program inspection? ^
# If Yes, what was the DLR /local program inspection date? 08/03/2011
E & SC Plan Yes No NA NE
Is the site following its approved Erosion and Sedimentation Control Plan as indicated on DLR/Local Program ^ n n n
Inspection Report?
Comment:
Erosion Control Measures Yes No NA NE
Is the site maintaining their erosion control measures as indicated on DLR/Local Program Inspection Report? n ^ n n
Comment: DLR inspection report dated 8/3/2011, noted that the silt fence at the toe of
the stormwater pond slopes needed to be maintained and silt fences be installed behind
lots where necessary as detailed on the approved plan.
At time of DWQ inspection, the silt fence along stormwater pond was filled and holding
back steep and eroding slopes allowing sediment to enter wetland areas.
Approved E&SC Plan Yes No NA NE
Is a copy of the approved E&SC plan on site? nnn ^
Comment: No plan observed while onsite.
No personnel onsite at time of DWQ inspection.
Rain Gauge Yes No NA NE
Is a rain gauge present on the site at the time of inspection? ^ n n n
Comment:
Rain Gauge Records Yes No NA NE
Is rain gauge data measured and recorded? nnn ^
Comment: No rain gauge observed while onsite.
No personnel onsite at time of DWQ inspection.
Inspection Records
Are inspection records of erosion & sedimentation control measures and stormwater discharges complete?
Comment: No records observed while onsite.
No personnel onsite at time of DWQ inspection.
Other NCG010000 Permit Conditions
Is the site compliant with other conditions of the NCG010000 permit?
Comment:
Other Water Quality Issues
Is the site free of any other Water Quality issues as noted during the inspection?
Yes No NA NE
nnn^
Yes No NA NE
^ n n n
Yes No NA NE
n^nn
Page: 3

Compliance Inspection Report
Permit: NCG010000 Effective: 02/02/10 Expiration: Owner: Blue Marlin LLC
SOC: Effective: Expiration: Facility: Mimosa Bay Phase 5 A
County: Onslow Old Folkstone Rd Sr1518
Region: Wilmington DWQ Tracking No: NCR003187
Holly Ridge NC 28445
Contact Person: Gordon P Frieze Title: Manager Phone: [phone]
Directions to Facility:
Site located in Stump Sound Township. NE on Old Folkstone from Hwy. 210 past Pine Hammond Road to entrance (Canvasback
Lane).
System Classifications:
Primary ORC: Certification: Phone:
Secondary ORC(s):
On-Site Representative(s):
Related Permits:
Inspection Date: 09/30/2011 Entry Time: 11:30 AM
Primary Inspector: Jean Conway
Secondary Inspector(s):
Exit Time: 12:00 PM
Phone: [phone]
Reason for Inspection: Routine
Permit Inspection Type: Construction Stormwater
Facility Status: ^ Compliant ^ Not Compliant
Question Areas:
Construction
(See attachment summary)
Inspection Type: Compliance Evaluation
Page: 1