WQ0002702_Regional Office Historical File Pre 2018

r y:
NC®ENR
North Carolina Department of Environment and Natural Resources
Division of Water Quality
Beverly Eaves Perdue Charles Wakild, P.E. Dee Freeman
Governor Director Secretary
Alchem, Inc.
2042 Buie Philadelphus Road
Red Springs, NC 28337
Attention: Randall Andrews
RE: Response to Notice of Violation
NOV 2012 PC-0052
Alchem, Inc. — Red Road Facility
Non -discharge Permit No.WQ0002702
Industrial Bauxite Recycle Process
Rowan County
Dear Mr. Andrews:
March 8, 2012
Your response to the referenced Notice of Violation was received via email on February 27`h. There seems to be some
confusion on your part regarding the nature of the violation. As the Notice stated, failure to submit the results of the
October 2011 groundwater sampling for MW-1, MW-2 and MW-3 (on the GW-59 report forms) is a violation of
Condition 33 of your recycle permit (WQ0002702). NOV-2012-PC-0052 did not address non-compliance with the
groundwater investigation (Groundwater Incident #2997). Should you wish to petition for a change to the groundwater
compliance monitoring schedule under your permit, you may request a modification from the division. The application
(CLRS 08-11) can be found at: http://portal.ncdenr.org/web/wq/aps/lau/applications. In the meantime, you must meet all
the requirements of Condition 33.
Should you have any questions, feel free to contact me at 704/235-2180 or via email at: andrew.pitner(c ncdenr.c,Tov.
Sincerely,
Andrew H. Pitner, P.G.
Regional Environmental Supervisor
Aquifer Protection Section
Mooresville Regional Office
Cc: Ed Hardee, DWQ APS Central Office
MAF/alchem response to NOV 2012 PC-0052 12-28-12
Division of Water Quality / Aquifer Protection Section / Mooresville Regional Office One
610 East Center Avenue, Suite 301, Mooresville, North Carolina 28115 NorthCarolina
Phone: [phone] Fax: [phone] Customer Service: 1-877-623-6748 1s���g�
Internet: http://portal.ncdenr.org/web/wq/aps ; A qatd�
An Equal Opportunity 1 Affirmative Action Employer

ALCHEM, INC.
cogporate Office
2042 Buie Philadelphus Road
Red Springs, NC 28377
Tel. [phone] -- 800-522-2944
Fax 9io-843-5789
[e-mail]
March 21, 2012
Mr. Andrew Pitner
Regional Environmental Supervisor
NCDENR Division of Water Quality
Mooresville Regional Office
610 East Center Ave.
Suite 301
Mooresville, NC 28115
NOV 2012 PC-0052
Dear Mr. Pitner:
Sales and Manufacturin
8135 Red Road
Rockwell, NC 28138
Tel. [phone] -- 800-462-2586
Fax [phone]
[e-mail]
ALCHEM does not have any money to continue ground water testing. As before
ALCHEM had approximately $500,000.00 embezzled from it by Robert Wolcott, Denise
Wolcott and Jason Desiato. I am certain that you are familiar with this as Ellen Huffman
called the Sheriffs deputy to try and help the embezzlers. I am going to have Angela
Scott in our office make an application to change. In the meantime you may feel free to
have the State of North Carolina do this work.
Best regards,
ALCHEM, INC.
Randall F. Andrews,
President
ams

ALCHEM, INC*
Corporate Office Sales and Manufacturing
2042 Buie Philadelphus Road 8135 Red Road
Red Springs, NC 28377 Rockwell, NC 28138
Tel. [phone] — 800-522-2944 Tel. [phone] — 800-462-2586
Fax [phone]
rfaQasemi.net
Fax 3-5789 alchem@a windstream,net
[e-mail]
February 27, 2012
Mr. Andrew Pitner
Regional Environmental Supervisor
NCDENR Division of Water Quality
Mooresville Regional Office
610 East Center Ave.
Suite 301
Mooresville, NC 28115
NOV 2012 PC-0052
Dear Mr. Pitner:
I have your letter of February 24. As I am sure you are aware Robert and Denise Wolcott
along with Jason and Joe Desiato embezzled over $500,000.00 from ALCHEM. One of
your employee's, Ellen Huffman called the detective investigating the case in an apparent
attempt to help the Wolcotts. So I am certain you are familiar with this. ALCHEM has
about $200.00 left and is $140,000.00 approximately in debt to me. ALCHEM does not
have the money to continue this extensive sampling. If we could agree on a much reduced
amount of sampling I would pay for it personally. ALCHEM is pumping the water and
using the water to make product. We have the wells on timers and they are pumping out
the ground water as fast as they can. This is probably going to be the best we can do. It
will be fine with me if the state will analyze the water. We can send you samples. I
would suggest once a year. We are pumping it as fast as we are using the water. What
else can we do? I do not believe that anything other than Aluminum and Sulfate should
be tested for. I am including what we do have. I can only ask that you be reasonable on
this.
Best regards,
ALCHEM, INC.
Randall F. Andrews,
President
ams

PAR Laboratories, Inc.
PAR
2217 Graham Park Drive
1ABOR4TOMES.INC.
PO Box 411483
NC 28241-1483
MWCharlotte,
Phone: [phone]; Fax: [phone]
NC Cert # 20; SC Cert # 99003
www.parlabs.com
Attn: TRENT TIDWELL
LIME-CHEM, INC.
8135 RED ROAD
ROCKWELL, NC 28138-
(Page 1 of 1)
SAMPLE
LAB No. DATE TIME
103863 02/08/12
103864 02/08/12
103865 02/08/12
SAMPLE LAB
ID NUMBER
MONITORING #1 103863
MONITORING #2 103864
MONITORING #3 103865
REPORT OF ANALYSES
PROJECT NAME: FEB 12
DATE: 02/15/12
DELIVERY
TO LAB
SAMPLER
DATE
TIME MATRIX
02/08/12
1045 WW
02/08/12
1045 WW
02/08/12
1045 WW
SULFATE
ALUMINUM, TOTAL
mg/L
mg/L
2,070
208
43.7
4.11
12,600
2,000
LABORATORY DIRECTOR

FiLE
NCDENR
North Carolina Department of Environment and Natural Resources
Division of Water Quality
Beverly Eaves Perdue Charles Wakild, P.E. Dee Freeman
Governor Director Secretary
February 24, 2012
CERTIFIED MAIL
RETURN RECEIPT REOUESTED
Alchem, Inc.
2042 Buie Philadelphus Road
Red Springs, NC 28377
Attention: Randall Andrews
RE: Notice of Violation
NOV 2012 PC-0052
Alchem, Inc. — Red Road Facility
Non -discharge Permit No.WQ0002702
Industrial Bauxite Recycle Process
Rowan County
Dear Mr. Andrews:
Chapter 143, North Carolina General Statutes, authorizes and directs the Environmental Management
Commission of the Department of Environment and Natural Resources to protect and preserve the water and air
resources of the State. The Division of Water Quality (division) has the delegated authority to enforce adopted
pollution control rules. This letter is a standard notification and is intended to advise you of the legal
requirements under North Carolina law. It was originally sent via certifed mail to the Red Road address but,
according to the US Postal Service, its delivery was refused.
A review of compliance monitoring reports for the referenced permit has revealed that you are not in
compliance with the following permit condition:
Permit Condition 33 — Monitor wells MW-1, MW-2, and MW-3 shall be sampled every February, June,
and October. The results of the sampling and analysis shall be submitted to the Division on the most
recent version of Form GW-59. The reports shall be received by the last day of the month following
each sampling event.
The Division has not received the report for the October 2011 groundwater sampling event.
As a result of the violations in this Notice our office is considering a recommendation for the assessment of a
civil penalty. If you wish to present an explanation for the violations cited, or if you believe there are other
Mooresville Regional Office
Location: 610 East Center Ave., Suite 301 Mooresville, NC 28115 One
Phone: [phone] Fax: [phone] Customer Service:1-877-623-6748
North Caroli n.a
Internet: www.ncwaterquality.org
An Equal Opportunity 1 Affirmative Action Employer - 50% Recycled(10% Post Consumer paper NaturallY

i
Alchem, Inc.. .
NOV 201T)N - 805
Page Two
factors which should be considered, please send such information to me in writing within ten (10) days
following receipt of this letter. Your response will be reviewed and taken into consideration prior to the
assessment of any civil penalty.
Failure to comply with conditions in a permit may result in a recommendation of enforcement action, to the
Director of the Division of Water Quality who may issue a civil penalty assessment of not more that twenty-five
thousand ($25,000) dollars against any "person" who violates or fails to act in accordance with the terms,
conditions, or requirements of a permit under authority of G.S. 143-215.6A.
Should you have any questions concerning this Notice, feel free to contact me at 704/235-2180 or via email at:
[e-mail].
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02042 BUIE PHILADELPHUS ROAD RED SPRINGS NC
28377------------
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RANDALL AND ------------
aps/ap 2/24/ 12
Sin rel ,
Andrew H. Pitner, P.G.
Regional Environmental Supervisor
Aquifer Protection Section
Mooresville Regional Office

I
Beverly Eaves Perdue
Governor
NCDENR
North Carolina Department of Environment and
Division of Water Quality
Charles Wakild, P.E.
Director
CERTIFIED MAIL
RETURN RECEIPT REQUESTED
Alchem, Inc.
8135 Red Road
Rockwell, NC 28138
Attention: Randall Andrews
Dear Mr. Andrews:
Natural Resources
RE: Notice of Violation
Dee Freeman
Secretary
February 16, 2012
NOV 2012 PC-0052
Alchem, Inc. — Red Road Facility
Non -discharge Permit No.WQ0002702
Industrial Bauxite Recycle Process
Rowan County
Chapter 143, North Carolina General Statutes, authorizes and directs the Environmental Management
Commission of the Department of Environment and Natural Resources to protect and preserve the water and air
resources of the State. The Division of Water Quality (division) has the delegated authority to enforce adopted
pollution control rules. This letter is a standard notification and is intended to advise you of the legal
requirements under North Carolina law.
A review of compliance monitoring reports for the referenced permit has revealed that you are not in
compliance with the following permit condition:
Permit Condition 33 — Monitor wells MW-1, MW-2, and MW-3 shall be sampled every February, June,
and October. The results of the sampling and analysis shall be submitted to the Division on the most
recent version of Form GW-59. The reports shall be received by the last day of the month following
each sampling event.
The Division has not received the report for the October 2011 groundwater sampling event.
As a result of the violations in this Notice our office is considering a recommendation for the assessment of a
civil penalty_ If you wish to present an explanation for the violations cited, or if you believe there are other
factors which should be considered, please send such information to me in writing within ten (10) days
Mooresville Regional Office
Location: 610 East Center Ave., Suite 301 Mooresville, NC 28115 One Phone: [phone] Fax: [phone] Customer Service:1-877.623-6748 No thCarohna
Internet: www.ncwaterquality.org [/
An Equal Opportunity 1 Affirmative Action Employer — 50% Recycled/10% Post Consumer paper Nahlrdi" iff

Alchem,. Inc.
NOV 2012 PC-0052
Page Two
following receipt of this letter. Your response will be reviewed and taken into consideration prior to the
assessment of any civil penalty.
-- Failure to - comply- with- conditions -in a permit may result in a recommendation of enforcement -action, to -the
Director of the Division of Water Quality who may issue a civil penalty assessment of not more that twenty-five
thousand ($25,000) dollars against any "person" who violates or fails to act in accordance with the terms,
conditions, or requirements of a permit under authority of G.S. i43-215.6A.
Should you have any questions concerning this Notice, feel free to contact me at 704/235-2180 or via email at:
L�.it(.�.il �i.1)11[T✓2'iCJ!I�C-CIe;I!'.<?�01'.
Sincerely,
1
Andrew H. Pitner, P.G.
Regional Environmental Supervisor
Aquifer Protection Section
Mooresville Regional Office
Cc: Randall Andrews, 2042 Buie Phildelphus Rd., Red Springs, North Carolina 28377
Ed Hardee, DWQ APS Central Office
MAF Alchem NOV 2012 PC 0052 2-16-12

ALCHEM, INC.
Corporate Office
2042 Buie Philadelphus Road
Red Springs, NC 28377
Tel. [phone] -- 800-522-2944
Fax 9io-843-5789
[e-mail]
February 27, 2012
Mr. Andrew Pitner
Regional Environmental Supervisor
NCDENR Division of Water Quality
Mooresville Regional Office
610 East Center Ave.
Suite 301
Mooresville, NC 28115
NOV 2012 PC-0052
Dear Mr. Pitner:
Sales and Manufacturing
8135 Red Road
Rockwell, NC 28138
Tel. [phone] -- 800-462-2586
Fax [phone]
[e-mail]
I have your letter of February 24. As I am sure you are aware Robert and Denise Wolcott
along with Jason and Joe Desiato embezzled over $500,000.00 from ALCHEM. One of
your employee's, Ellen Huffman called the detective investigating the case in an apparent
attempt to help the Wolcotts. So I am certain you are familiar with this. ALCHEM has
about $200.00 left and is $140,000.00 approximately in debt to me. ALCHEM does not
have the money to continue this extensive sampling. If we could agree on a much reduced
amount of sampling I would pay for it personally. ALCHEM is pumping the water and
using the water to make product. We have the wells on timers and they are pumping out
the ground water as fast as they can. This is probably going to be the best we can do. It
will be fine with me if the state will analyze the water. We can send you samples. I
would suggest once a year. We are pumping it as fast as we are using the water. What
else can we do? I do not believe that anything other than Aluminum and Sulfate should
be tested for. I am including what we do have. I can only ask that you be reasonable on
this.
Best regards,
ALCHEM, INC.
f
Randall F. Andrews,
President
ams

LABORATORIES, INC.
www.parlabs.com
PAR Laboratories, Inc.
2217 Graham Park Drive
PC Box 411483
Charlotte, NC 28241-1483
Phone: [phone]; Fax: [phone]
NC Cert # 20; SC Cert # 99003
Attn: TRENT TIDWELL
LIME-CHEM, INC.
8135 RED ROAD
ROCKWELL, NC 28138-
(Page 1 of 1)
SAMPLE
LAB No. DATE TIME
103863 02/08/12
103864 02/08/12
103865 02/08/12
SAMPLE LAB
ID NUMBER
MONITORING #1 103863
MONITORING #2 103864
MONITORING #3 103865
REPORT OF ANALYSES
PROJECT NAME: FEB 12
DATE: 02/15/12
DELIVERY TO LAB
SAMPLER
DATE
TIME MATRIX
02/08/12
1045 WW
02/08/12
1045 WW
02/08/12
1045 WW
SULFATE
ALUMINUM, TOTAL
mg/L
mg/L
2,070
208
43.7
4.11
12,600
2,000
LABORATORY DIRECTOR

'21LE
NC®ENR
North Carolina Department of Environment and Natural Resources
Beverly Eaves Perdue
Governor
CERTIFIED MAIL
RETURN RECEIPT REQUESTED
Mr. Randall Andrews, Registered Agent
ALCHEM, Inc.
2042 Buie Philadelphus Road
Red Springs, NC 28138
and
ALCHEM, Inc.
8135 Red Road
Rockwell, NC 28138
Dear Mr. Andrews:
Division of Water Quality
Charles Wakild, P.E.
Director
Dee Freeman
Secretary
May 1, 2012
SUBJECT: Assessment of Civil Penalty for
Violations of NC General Statute 143-215.1 (6) and
Non -Discharge Permit No. WQ0016338
Non -Discharge permit No. WQ0002702
Case No. PC-2012-0014
NOV-2012-PC-0053
Case No. PC-2012-0017
NOV-2012-PC-0052
Rowan County
This letter transmits notice of a civil penalty assessed against ALCHEM, Inc. in the amount of $9,619.61, which
includes 1 1$ 19.61 in investigative costs. A copy of the assessment document explaining this penalty is
attached.
This action was taken under the authority vested in me by delegation provided by the Secretary of the
Department of Environment and Natural Resources and the Director of the Division of Water Quality. Any
continuing violation(s) may be the subject of a new enforcement action, including an additional penalty.
Division of Water Quality I Aquifer Protection Section/ Mooresville Regional Office
610 East Center Avenue, Suite 301, Mooresville, North Carolina 26115
Phone: [phone] Fax: [phone]
Internet: www.ncwaterquality.org
Nne
orthCarohna
,aturazy
An Equal Opportunity 1 Affirmative Action Employer

ALCHEM,_Inc' Assessment
WO0016338 and WO0002702
May 1, 2012
Within thirty days of receipt of this notice, you must do one of the following three items:
•o
1. Please submit payment of the penalty:
Payment should be made directly to the order of the Department of Environment and
Natural Resources (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:
Mr. Ed Hardee
DWQ/Aquifer Protection Section
1636 Mail Service Center
Raleigh, North Carolina 27699-1636
2
2. Submit a written request for remission or mitigation including a detailed justification for
such request:
A request for remission or mitigation is limited to consideration of the reasonableness of the
amount of the penalty and is not the proper procedure for contesting the accuracy of any of the
statements contained in the 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 that there are no factual or legal issues
in dispute. You must execute and return to this office the attached waiver and stipulation form,
the Justification for Remission Request and a detailed statement, which you believe establishes
whether:
(a) one or more of the civil penalty assessment factors in G.S. 143B-282.1(b) were
wrongfully applied to the detriment of the petitioner;
(b) the violator promptly abated continuing environmental damage resulting from the
violation;
(c) the violation was inadvertent or a result of an accident;
(d) the violator had been assessed civil penalties for any previous violations;
(e) payment of the civil penalty will prevent payment for the remaining necessary remedial
actions.
Please submit this information to the attention of:
Mr. Ed Hardee
DWQ/Aquifer Protection Section
1636 Mail Service Center
Raleigh, North Carolina 27699-1636
Please note that all information presented in support of a request for remission must be
submitted in writing. The Director of the Division of Water Quality will review the information and.

6
ALCHEM, Inc. Assessment
WQ0016338 and WQ0002702
. May.1, 2012
NZ
inform you of her decision in the matter of the remission request. Her response will provide
details regarding case status, directions for payment and provision for further appeal of the
penalty to the Environmental Management Commission's Committee on Civil Penalty
Remissions. Please be advised that the Committee cannot consider information that was not
part of the original remission request considered by the Director, and therefore, it is very
important that you prepare a complete and thorough statement in support of your request for
remission.
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 original and one (1) copy of the petition must be filed with
the Office of Administrative Hearings. The petition may be faxed - provided the original and one
copy of the document is received in the Office of Administrative Hearings within five (5)
business days following the faxed transmission.
The mailing address for the Office of Administrative Hearings is:
Office of Administrative Hearings
6714 Mail Service Center
Raleigh, North Carolina 27699-6714
Telephone [phone] Facsimile [phone]
A copy of the petition must also be served on DENR as follows:
Mr. William Cary, General Counsel
Department of Environment and Natural Resources
1601 Mail Service Center
Raleigh, North Carolina 27699-1601
Please mail or hand deliver a copy to:
Mr. Ed Hardee
DWQ/Aquifer Protection Section
1636 Mail Service Center
Raleigh, North Carolina 27699-1636
Please indicate the case numbers (as found on page one of this letter) on the petition.
Failure to exercise one of the options above within thirty (30) days of receipt of this letter, as evidenced by an
internal date/time received stamp (not a postmark), will result in this matter being referred to the Attorney

ALCHEM, Inc. Assessment
WQ0016338 and WQ0002702
May 1, 2012
4
General's Office for collection of the penalty through a civil action. 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 me at [phone] or Mr. Ed Hardee at [phone].
Since ely,
Andrew H. Pitner, P.G.
Environmental Program Supervisor III
Aquifer Protection Section
Mooresville Regional Office
ATTACHMENTS
cc: Ed Hardee, DWQ APS Central Office w/attachments
Cases # PC-2012-0014 & PC-2012-0017 w/ attachments
APS Central Files w/ attachments
Anita LeVeaux, Attorney General's Office, Environmental Division

STATE OF NORTH CAROLINA.
COUNTY OF ROWAN
IN THE MATTER OF:
ALCHEM INCORPORATED
FOR VIOLATIONS OF
PERMIT NO. WQ0016338,
PERMIT NO. WQ0002702
AND N.C.G.S. 143-215.1
NORTH CAROLINA DEPARTMENT OF
ENVIRONMENT AND NATURAL
RESOURCES
Case #PC-2012-0014
NOV File No. PC-2012-0053
Case #PC-2012-0017
NOV File No. PC-2012-0052
FINDINGS AND DECISION
AND ASSESSMENT OF CIVIL PENALTIES
Acting pursuant to the North Carolina General Statutes and delegation provided by the
Secretary of the Department of Environment and Natural Resources and the Director of the
Division of Water Quality, I, Andrew H. Pitner, Environmental Program Supervisor III of the
Mooresville Regional Office (MRO) Aquifer Protection Section (APS) of the Division of Water
Quality (DWQ), of the North Carolina Department of Environment and Natural Resources, make
the following:
FINDINGS OF FACT:
A. ALCHEM INCORPORATED (herein referred to as ALCHEM) is a corporation
organized and existing under the laws of the State of North Carolina. ALCHEM
operates a washwater recycle system and a bauxite residuals disposal (monofill)
system in Rockwell, North Carolina, Rowan County. The registered agent for
ALCHEM is Randall Andrews.
B. The Non -Discharge Permit WQ0002702 was issued December 28, 2004. It allows
ALCHEM to recycle washwater from the production of alum and to store the resulting
bauxite residuals in on -site lagoons. Permit WO0002702 expires on November 30,
2013.
C. The Non -Discharge Permit No. WQ0016338 was issued December 28, 2006. It allows
ALCHEM to dispose of the spent bauxite residuals on site, after they meet certain
conditions, or be disposed of in a subtitle D landfill. The permit was adjudicated by
Alchem when issued. A settlement agreement between Alchem and DWQ was filed
on November 27, 2007, making the permit effective. An application to modify this
permit was received on April 15, 2011. A modified permit was issued on August 24,
2011. This modification was issued because ALCHEM was no longer producing the
product that produced the waste residual. This permit included certain conditions for
closure. Permit WQ0016338 expires on November 30, 2015.

D. --On February 9, 2012, the facility was inspected by DWQ staff from the- Mooresville
Regional Office using the permit conditions contained in the most recent permits.
Said permits contain the following relevant conditions with inspection findings:
1. WQ0016338, Condition 1.1 requires submittal of documentation regarding current
site activity within thirty (30) days of issuance. To date, documentation submitted
by ALCHEM is not clear regarding current site activity.
2. WQ0016338, Condition 1.2 requires submittal of a closure plan and post -
management care for the permitted lagoons within 90 days of permit issuance. To
date, no closure plan has been submitted by ALCHEM.
3. WQ0016338, Condition 1.3 requires certification from a professional engineer that
the lagoons had been closed in accordance with an approved closure plan. To
date, no certification of lagoon closure has been received.
4. WQ0016338 Condition IV.6 requires an annual reporting of bauxite residuals
disposal for the permitted site. To date, no annual report has been received.
5. WQ00016338, a Condition noted on the permit cover letter requires a submittal of
a permit modification or rescission request be submitted for permit WQ0002702 to
address future plans for the recycle system permitted for the production of ALUM.
To date, no modification or rescission request for W00002702 has been submitted.
6. WQ0002702, Condition 111.3 requires monitoring wells MW-1, MW-2 & MW-3 to be
sampled every February, June, and October. No sampling analyses have been
received for October 2011.
E. On February 24, 2012, DWQ issued a Notice of Violation (NOV-2012-PC-0052) to
ALCHEM identifying a violation of Non -Discharge Permit WQ0002702 for failing to
submit sampling data for monitoring wells for October 2011.
F. NOV-2012-PC-0052 was sent by certified mail on February 24, 2012, return receipt
requested and received on February 27, 2012.
G. On March 14, 2012, DWQ issued a Notice of Violation (NOV-2012-PC-0053)/Notice of
Intent to Enforce to ALCHEM, identfying violations of Non -Discharge Permits
WQ0016338 and WQ0002702. The violations include failure to submit documentation
of site activity, failure to submit a closure plan for the lagoons, failure to submit
engineering certification of lagoon closure, failure to submit a modification or rescission
request for Permit WQ0002702, and failure to submit an annual report for 2011 by
March 1, 2012.
H. NOV-2012-PC-0053/Notice of Intent to Enforce was sent by certified mail on March 14,
2012, return receipt requested and received on March 15, 2012.
Staff costs and expenses associated with observing the violations, defining their nature
and bringing enforcement action totaled $ 1119.61.
Based upon the above Findings of Fact, I make the following:

II. CONCLUSIONS OF LAW:
A. ALCHEM is a "person" within the meaning of G.S.143-215.6A pursuant to G.S. 143-212(4).
B. Permit No. WQ0016338 is required by N.C.G.S. 143-215.6A. It was issued on August 24,
2011, and became effective and enforceable on September 23, 2011. The permit expires
on November 30, 2015.
C. Permit No. WQ0002702 is required by N.C.G.S. 143-215.6A. It was issued on December
28, 2004. The permit expires on November 30, 2013.
D. ALCHEM violated N.C.G.S. 143-215.1 and Permit WQ0016338 to the manner and extent as
described in Condition 1.1 by not submitting required documentation regarding current site
activity within thirty (30) days of issuance.
E. ALCHEM violated N.C.G.S. 143-215.1 and Permit WQ0016338 to the manner and extent as
described in Condition 1.2 by not submitting required closure plan and post -management
care for the permitted lagoons within 90 days of permit issuance.
F. ALCHEM violated N.C.G.s. 143-215.1 and Permit WQ0016338, to the manner and extent as
described in Condition 1.3 which requires certification from a professional engineer that the
lagoons had been closed in accordance with an approved closure plan.
G. ALCHEM violated N.C.G.S. 143-215.1 and Permit WQ0016338 to the manner and extent as
described in Condition IV.6 by not submitting an annual report of bauxite residuals disposal
for the permitted site for 2011.
H. ALCHEM violated N.C.G.S 143-215.1 and Permit WQ0016338 for a Condition noted on the
permit cover letter by. not submitting a permit modification or rescission request for permit
WQ0002702 to address future plans for the recycle system permitted for the production of
alum.
I. ALCHEM violated N.C.G.S 143-215.1 and Permit WQ0002702, to the manner and extent as
described in Condition 33 and requires monitoring wells MWA , MW-2 and MW-3 to be
sampled every February, June, and October. No sampling analyses have been received for
October 2011.
J. General Statute .1 43-215.6A(a)(2) provides that a civil penalty of not more than $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 N.C.G.S. 143-215.1.
K. General Statute 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.
L. The Regional Supervisor of the Mooresville Aquifer Protection Section, Division of Water
Quality, pursuant to delegation provided by the Secretary of the Department of Environment
and Natural Resources and the Director of the Division of Water Quality has the authority
to assess civil penalties in this matter.

Based upon the above Findings of Fact and Conclusions of Law, I make the following:
III. DECISIONS:
Pursuant to N.C.G.S. 143-215.6A in determining the amount of the penalty, I have taken into
account the Findings of Fact and Conclusions of Law and considered all the factors listed in
N.C.G.S. 14313-282.1.
Accordingly, ALCHEM shall be, and hereby is, assessed a civil penalty of:
$ 500.00 for one violation of N.C.G.S. 143-215.1 and Permit WQ0016338
by failing to submit the required documentation regarding current
site activity within thirty (30) days of issuance.
$ 3,000.00 for one violation of N.C.G.S. 143-215.1 and Permit WQ0016338
by failing to submit required closure plan and post -management
care for the permitted lagoons within 90 days of permit issuance.
$ 500.00 for one violation of N.C.G.S. 143-215.1 and Permit WQ0016338
by failing to acquire certification from a professional engineer that
the lagoons had been closed in accordance with an approved
closure plan.
$ 1,000.00 for one violation of N.C.G.S. 143-215.1 and Permit WQ0016338
by failing to submit an annual report of bauxite residuals disposal
activity for 2011 for the permitted site.
$ 500.00 for one violation of N.C.G.S. 143-215.1, and Permit WQ0016338
by failing to submit a permit modification or rescission request for
permit WQ0002702.
$ 3,000.00 for one violation of N.C.G.S. 143-215.1, and Permit WQ0002702
by failing to sample groundwater monitoring analyses for the
October 2011 sampling period.
$ 8,500.00 TOTAL CIVIL PENALTY, which is 6 (six) percent of the maximum
penalty authorized by G.S. 143-215.6A.
$ 1,119.61 Investigation and Enforcement costs assessed.
$ 9,619.61 TOTAL AMOUNT DUE
Pursuant to N.C.G.S. 143-215.6A in determining the amount of the penalty, I have taken into
account the Findings of Fact and Conclusions of Law and considered all the factors listed in
N.C.G.S. 14313-282.1, 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;

r
4) The cost of rectifying the damage;
5) The amount of money saved by non-compliance;
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
ALCHEM Incorporated in accordance with N.C.G.S. 143-215.6(A)(d).
5.�,12-
(Date)
f
Andrew H. Pitner, P.G.
Environmental Program Supervisor III
Aquifer Protection Section
Mooresville Regional Office

JUSTIFICATION FOR REMISSION REQUEST
Case Number: PC-2012-0014 & PC-2012-0017 County: Rowan
Assessed Party: ALCHEM Incorporated
Permit No. (if applicable): WQ0016338 &W00002702 Amount assessed: $9.619.61
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 applied 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:

STATE OF NORTH CAROLINA
DEPARTMENT OF ENVIRONMENT
AND NATURAL RESOURCES
COUNTY OF ROWAN
IN THE MATTER OF ASSESSMENT)
OF CIVIL PENALTIES AGAINST )
ALCHEM INCORPORATED )
Permit No. WQ0016338 and
Permit No. WQ00002702
WAIVER OF RIGHT TO AN.
ADMINISTRATIVE HEARING AND
STIPULATION OF FACTS
CASE FILE NO. PC-2012-0014
CASE FILE NO. PC-2012-0017
Having been assessed civil penalties totaling $9,619.61 for violations as set forth in the
assessment document of the Division of Water Quality, Aquifer Protection Section dated May 1,
2012 the undersigned, desiring to seek remission of the civil penalties, 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 Quality within 30 days of receipt of the notice of assessment. No new
evidence in support of a remission request will be allowed after 30 days from the receipt of the
notice of assessment.
This the day of , 20
Signature
ADDRESS
TELEPHONE

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ALCHEM, INC.
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2042 BUIE PHILADELPHUS ROAD ________
`et, RED SPRINGS NC 28138
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- ATTN: MR RANDALL ANDREWS, REG. AGENT
aps/eh 5/1/12

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May 1, 2012
MEMORANDUM
TO: Ed Hardee, APS, LAU
FROM: Andrew Pitner, MRO, APS
s
PREPARED BY: Peggy Finley & Ellen Huffman, MRO, APS
SUBJECT: Enforcement Cases
PC-2012-0014 (NOV-2012-PC-0053)
PC-2012-0017 (NOV-2012-PC-0052)
Violation of Permits No. WQ0016338 and
WQ0002702
ALCHEM, Inc.
Attached is the enforcement package sent to ALCHEM, Inc. on May 1, 2012, with
supporting documentation concerning violations of the subject permits. The
violations resulted from ALCHEM's failure to comply with permit conditions. This
Office is issuing a penalty.
The attached material should be self-explanatory; however, if you have any
questions, please contact Ellen, Peggy or me.
Attachments
maf

Page 1
Summary
See attached Compliance Inspection Report
CHECKLIST FOR PERMIT VIOLATIONS
1. Copies of the Permits (#WQ0016338, WQ0002702) are attached.
2. The violator is ALCHEM, Incorporated. Mr. Randall Andrews is the agent for the
company.
Mr. Randall Andrews
2042 Buie Philadelphus Road
Red Springs, North Carolina 28377
3. This enforcement involves violations of non -discharge Permit conditions and general
statute G.S. 143-215.1.
4. Copies of correspondence are attached.
5. Copies of chain -of -custody. Not applicable
6. The violation is not due to a power failure or by-pass of any treatment facility.
7. Are violations chronic and/or due to a single operational upset?
The permittee has received Notices of Violation and has been subject to
enforcement in the past for related issues and has a significant history of
noncompliance. The violations are not associated with a single operational upset.
8. Were any specific notifications submitted concerning noncompliance?
NOV-2012-PC-0052 was sent on February 24, 2012; a response was received on
February 27; a letter from DWQ providing clarity on the violation was sent on March
8, 2012 and a final response to this NOV was received on March 21, 2012. NOV-
2012-PC-0053 was sent on March 14, 2012 as a NOV/NOI. A response to the
NOV/NOI was received by the MRO on March 23, 2012.
9. Cost of the investigation:
20 hours by Ellen Huffman for preparation
of enforcement report at $29.83/hour = 596.59
5 hours by Peggy Finley for preparation
of enforcement report at $27.01/hour = 135.04
10 hours by Andrew H. Pitner, for supervisory review
at $35.98/hour = 359.80
1 hour for clerical processing at $10.93/hour = 10.93
Certified Mail 3 @ $5.75 /ea. = 17.25
Total $ 1119.61

s'
i
DIVISION OF WATER QUALITY
CIVIL PENALTY ASSESSMENT FACTORS
Violator: Alchem Incorporated
County: Rowan
Case Number: PC-2012-0014 & PC-2012-0017
Permit Numbers: WO0002702 and WO0016338
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;
Impacts to groundwater and surface water at the facility have been documented,
including contamination of neighboring water supply wells. Violations associated with
this enforcement case include issues associated with proper closure of the lagoons,
reporting, and permit -required sampling of the groundwater. That there are existing
issues with contamination at the site and that Alchem has demonstrated unwillingness to
correct the problems is a very significant factor in this assessment.
2) The duration and gravity of the violation;
The facility has had a lengthy history of non-compliance. However, several of the items
in this enforcement are associated with a new permit that the permittee requested and
these issues are relatively recent. Failure to submit an annual report and failing to
sample monitoring wells are issues that have also occurred in the past. This is
considered a moderately significant factor.
3) The effect on ground or surface water quantity or quality or on air quality;
Groundwater and surface water at and near the facility have been impacted by Alchem's
operations. The degree to which the current violations are related to those impacts is not
clear. This is considered a moderately significant factor.
4) The cost of rectifying the damage;
The cost to rectify damage from these violations is not clear. This is considered a
moderately significant factor.
5) The amount of money saved by noncompliance;
It is difficult to quantify the amount saved by ALCHEM by failing to perform to permit
standards. Providing documentation of site activity would have little cost. Preparation of
a lagoon closure plan would likely cost in the low thousands. Engineering certification
assumes lagoon closure, which would be tens of thousands, though the engineering
certification would be included with that cost. An annual report for this facility should be
minimal if no disposal has occurred. Missed analytical samples would be in the low
hundreds of dollars. This is considered a moderately significant factor.
6) Whether the violation was committed willfully or intentionally;

N,
The violations were willful and intentional. Alchem has a lengthy history of
noncompliance and been aware of the regulatory requirements of their permits from
previous inspections, Notices of Violation, enforcements, and settlement agreements.
This is considered extremely significant.
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
The ALCHEM facility has an extensive record of non-compliance, including NOV
10/25/1990, NOV 01/07/2002, NOV 03/15/2002, NOV/NRE 05/12/2003, NOV
08/19/2003, NOV/NRE 01/12/2005, NOV/NRE 09/20/2005, NOV/NRE 01/06/2006,
NOV/NRE 12/20/2006, NOV/NRE 12/20/2006, NOV/NRE 3/25/08, NOV/NRE 6/2/09,
NOV/NOI 6/10/10. This is considered extremely significant.
8) The cost to the State of the enforcement procedures.
The cost to the State in bringing about this enforcement action is as follows:
20 hours by Ellen Huffman for preparation
of enforcement report at $29.83/hour = 596.59
5 hours by Peggy Finley for preparation
of enforcement report at $27.01/hour = 135.04
10 hours by Andrew H. Pitner, for supervisory review
at $35.98/hour = 359.80
1 hour for clerical processing at $10.93/hour = 10.93
Certified Mail 3 @ $5.75 /ea. = 17.25
Total $ 1119.61
This is considered a moderately significant factor. '
y�
Date Supervisor Name

i
_. - DIVISION OF WATER QUALITY --CIVIL PENALTY ASSESSMENT
Violator: ALCHEM, Inc.
County: Rowan
Case Number: PC-2012-0053
ASSESSMENT FACTORS
1) The degree and extent of harm to the natural resources of the State, to the public health,
or to private
( ) not significant ( ) moderately significant( ) significant (x) very significant () extremely
significant
2) The duration and gravity of violation;
( ) not significant (x) moderately significant () significant () very significant ( )
extremely significant
3) The effect on ground or surface water quantity or quality or on air quality;
( ) not significant (x) moderately significant () significant ( ) very significant ( )
extremely significant
4) The cost of rectifying the damage;
( ) not significant (x) moderately significant () significant () very significant( ) extremely
significant
5) The amount of money saved by noncompliance;
( ) not significant (x) moderately significant( ) significant ( ) very significant () extremely
significant
6) Whether the violation was committed willfully or intentionally;
( ) not significant ( ) moderately significant( ) significant ( ) very significant (x) extremely
significant
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
( ) not significant ( ) moderately significant( ) significant ( ) very significant (x) extremely
significant
8) The cost to the State of the enforcement procedures.
( ) not significant (x) moderately significant ( ) significant ( ) very significant () extremely
significant i\
Date Andrew '. Pitner, P.G.

REMISSION FACTORS
( ) Whether one or more of the civil penalty assessment factors were wrongly applied to the
detriment of the petitioner;
( ) Whether the violator promptly abated continuing environmental damage resulting from
the violation;
( ) Whether the violation was inadvertent or a result of an accident;
( ) Whether the violator had been assessed civil penalties for any previous violations; and
( ) Whether payment of the civil penalty will prevent payment for the remaining necessary
remedial actions.
Date

ALCHEM, INC.
Corporate Office
2042 Buie Philadelphus Road
Red Springs, NC 28377
Tel. [phone]— 800-522-2944
Fax [phone]
[e-mail]
March 23, 2012
Mr. Andrew Pitner
Regional Environmental Supervisor
NCDENR Division of Water Quality
Mooresville Regional Office
610 East Center Ave.
Suite 301
Mooresville, NC 28115
NOV 2012 PC-0053
Dear Mr. Pitner:
Sales and Manufacturing
8135 Red Road
Rockwell, NC 28338
Tel. [phone] — 800-462-2586
Fax [phone]
[e-mail]
I have received you letter of March 14. I have some questions about the letter. I have marked on
page 1 a sentence as Number 1. I just do not remember asking NCDENR to send me a permit
with closure plans and post -closure management care. We did request that we reduce the
sampling. We did not request any of the other things in the permit. We do not understand how
Permit WQ0002702 is affected by the shutdown of Alum production. Please explain this to me.
I would like to skip to page 2 and the sentence marked as Number 2. You state that portions of
the permitted facilities are being operated in a manner different from the past. Could you
possibly be a little more specific? Naturally we are interested in following the rules. If a new
company is operating the permitted systems I am not really aware of it. We are pumping water
from wells into one of the almost empty lagoons. We are then pumping the water into a tank and
raising the pH and then using the water to produce various chemicals. We expect the water usage
to increase as time goes on. Every tanker of product that leaves has between three and four
thousand gallons of water in it. We have the well pumps on timers so that they pump for about
10 minutes out of each hour. As fresh water recharges, the amount of Sulfate that is present in
the water must dissipate. The pH must increase. This may take a long time but as with
everything, we are starting and it has to get better. I know of nothing else to do here. I believe
that at one time I wrote you about the fact that we did not want to cover the lagoons. Alchem
does not have any money to cover the lagoons or pay an engineering firm to submit closure plans.
Again, I object to everything in this permit. I did not request a closure. Alchern has no money to
carry this out.
Best regards,
ALCHEM, INC.
Randall F. Andrews,
President
ams

NCDENR
North Carolina Department of Environment and Natural Resources
Division of Water Quality
Beverly Eaves Perdue Charles Wakild, P.E. Dee Freeman
Governor Director Secretary
March 14, 2012
Certified Mail
Return Receipt Requested
Alchem Incorporated
2042 Buie Philadelphus Rd.
Red Springs, NC 28377
Attention: Randall Andrews
Subject: Notice of Violation (NOV) and
Notice of Intent (NOI) to Enforce
NOV-2012-PC-0053
WQ0002702, W00016338
Recycle System, Monofill
Rockwell, Rowan County
Dear Mr. Andrews:
Chapter 143, North Carolina General Statutes, authorizes and directs the Environmental Management
Commission of the Department of Environment and Natural Resources to protect and preserve the water and
air resources of the State. The Division of Water Quality (division) has the delegated authority to enforce
adopted pollution control rules. This letter is a standard notification and is intended to advise you of the legal
requirements under North Carolina law.
On February 9, 2012, staff from the Mooresville Regional Office, Aquifer Protection Section (Ellen
Huffman, Peggy Finley, and Maria Schutte) conducted an inspection of the Alchem facility in Rockwell. The
facility was found to be in violation of conditions of the subject permits.
Permit WQ0016338 was modified per your request and re -issued on August 24, 2011. It contains
certain permit conditions that have not been met in the allotted time specified. These conditions were put into
the permit because of changes in product manufacturing at the Alchem facility. The following are violations:
1. Condition 1.1 - submittal of documentation of current site activity.
2. Condition 1.2 — submittal of a closure plan for the lagoons and post -closure management care.
3. Condition 1.3 — Certification that the lagoons have been closed in accordance with an approved closure
plan (Cond. 1.2).
4. (Noted on the permit cover) Submittal of a permit modification or rescission request for permit
WQ0002702 to address future plans for the recycle system.
5. Condition IV.5 — Submittal of an annual report on or before March 1st of the following year.
Division of Water Quality / Aquifer Protection Section / Mooresville Regional Office
610 East Center Avenue, Suite 301, Mooresville, North Carolina 28115
Phone: [phone] Fax: [phone]
Internet: www.ncwaterquality.org
Nahlrally
NofthCarohna
An Equal Opportunity 1 Affirmative Action Employer

ALCHEM NOV
March 14, 2012
Page 2 of 2
Please note staff at the Red Road facility are now referring to it as "Limechem" rather than "Alchem"
and portions of the permitted facilities were being used in a manner different from the past. If a new company
is operating the permitted systems at the facility, it is operating without a permit and may be subject to
enforcement for the same. Permit WQ0016338, Condition VI.5 discusses requirements for ownership and
name changes. The MRO suggests that the owner of Alchem and/or Limechem submit a permit modification in
the next thirty (30) days to change name or ownership or apply for a new permit.
Failure to comply with conditions in a permit may result in a recommendation of enforcement action, to
the Director of the Division of Water Quality who may issue a civil penalty assessment of not more that twenty-,
five thousand ($25,000) dollars against any "person" who violates or fails to act in accordance with the terms,
conditions, or requirements of a permit under authority of G.S. 143-215.6A. Please note that each day a
violation continues may be considered a separate violation, subject to additional civil penalties.
As a result of the violations described in this Notice, this office is considering a recommendation for a
civil penalty assessment to the Director of the Division. If you wish to present an explanation for the violations
cited, or if you believe there are other factors that should be considered, please send such information to me in
writing within ten (10) days following receipt of this letter. Your response will be reviewed, and, if an
enforcement action is still deemed appropriate, it will be forwarded to the Director and included for
consideration.
Should you have any questions, feel free to contact me at 704/235-2180 or via email at:
Andrew. Pitner(a-),ncdenr.gov.
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ALCHEM INC.
2042 BUIE PHILADELPHUS ROAD
•-------------
RED SPRINGS NC 28377
ATTN: RANDALL ANDREWS •-------------
aps/ap 3/14/12
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MCDEHR-
North Carolina Department of Environment and Natural Resources
Division of Water Quality
Beverly Eaves Perdue Coleen H. Sullins Dee:Fre6i
Governor Director .� �-- Ife
is�' �•� s .ro...�b.�.,��..»�,.,.��.,.,: ,�
August 24, 2011
AUG I.�
Mr. Randall Andrews
Alchem, Inc.
8135 Red Road {,"_ n
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bt, := • : it,� •efjt £ �f5%v?u..,Y'9tY
Rockwell, NC 28138
Subject:: Permit No. WQ0016338
Alchem, Inc.
Surface Disposal of Bauxite
Residuals Monofill
Rowan County
Dear Mr. Andrews:
In accordance with your permit minor modification request. received April 15, 2011, we are
forwarding herewith Permit No. WQ0016338, dated August 24, 2011, to Alchem, Inc. for the operation of
the subject residuals management program.
Modifications to the subject permit are as follows:
• Attachment A,'sampling requirements of bauxite material are suspended. Note that addition
of Bauxite material to the permitted surface disposal units is prohibited.
• Condition L1., within 30 days of permit issuance, documentation regarding current site
activity (i.e. what material is being produced, etc.) shall be submitted to the Division.
• Condition I.2., regarding the requirement for closure plan and post -closure management care
program submission.
• Condition 1.3., upon completion of the clean out and closure of the lagoons, a certification
shall be submitted from a licensed North Carolina Professional Engineer certifying that the
lagoons have been properly closed in accordance with the approved closure plan.
a Condition VI.7., the Permittee shall maintain this permit until all permitted facilities herein are
properly closed or permitted under another permit issued by the appropriate permitting
authority pursuant to 15A NCAC 02T .01050).
• Please note that a related wastewater recycle permit (WQ0002702) is affected by the shutdown
of the alum production. The Permittee shall submit a permit modification or rescission request
to address fixture plans of the recycle system.
AQUIFER PROTECTION SECTION
1636 Mail Service Center, Raleigh, North Carolina 27699-1636
Location: 2728 Capital Boulevard, Raleigh, North Carolina 27604
Phone: [phone] FAX 1: 919-715-0588: FAX 2: 919-715-60481 Customer Service:'i-877-623-6746
internee: http:]inortal.ncdenr.orclweh/walao;
An Equal Opportunity 1 Aftm. five Action Employe:
One
Noidb `wpD;!ina
ov 1" m 1141if

Mr. Andrews
August 24, 2011
Page 2 of 2
On August 5, 2009, Session Law 2009-406 and 2010-177, was enacted by the General
Assembly and signed into law. The Act extends the expiration date of certain government
approvals and permits. Non -discharge permit, WQ0016338, issued by the Division of Water Quality
falls within the scope of this Act and is therefore being extended until November 30, 2015. PIease
note per .your permit, a renewal application must still be submitted six months in advance of the
extended 'expiration date.
is yemitshall be effective from the date of issuance until November 30 2015 shall void
OF'. 8 i Termit '1',ssued:December 28, 2006, and shall be subject to the conditions and limitations
f:. W Q .
as specified therein. Failure to ;establish an adequate system for collecting and maintaining the required
op6rational information shall result in fixture compliance problems.
If any parts, requirements or limitations contained in this permit are unacceptable, the Permittee
has the right to'request an adjudicatory hearing upon written request within 30 days following receipt of
this permit. This request shall be in the form of a written petition, conforming to Chapter 150B of the
North Carolina General Statutes, and filed with the Office of Administrative Hearings at 6714 Mail
Service Center, Raleigh, NC 27699-6714. Unless such demands are made, this permit shall be final and
binding.
If you need additional information concerning this matter, please contact Chonticha McDaniel at
[phone] or [e-mail].
Sincerely,
.� Coleen H. Sullins
cc: Rowan County Health Department
Mooresville Regional Office, Aquifer Protection Section
Technical Assistance and Certification Unit
Permit File WQ0016338
Notebook File WQ0016338

NORTH CAROLINA
ENVIRONMENTAL MANAGEMENT COMMISSION
DEPARTMENT OF ENVIRONMENT AND NATURAL RESOURCES
RALEIGH
SURFACE DISPOSAL OF BAUXITE RESIDUAL SOLIDS PERMIT
In accordance with the provisions of Article 21 of Chapter 143, -General Statutes of North Carolina as
amended, and other applicable Laws, Rules, and Regulations
PERMISSION IS HEREBY GRANTED TO
Alclicm, Inc.
Rowan County
FOR THE
operation of a residuals management program for Alchem, Inc, and consisting of the surface disposal of
bauxite residuals generated by the approved facilities listed in Attachment A to the approved site located
at 8135 Red Road, Rockwell, North Carolina, with no discharge of wastes to surface waters, pursuant to
the application received April 15, 2011, and in conformity with the project plans, specifications, and other
supporting data subsequently filed and approved by the Department of Environment and Natural
Resources and considered a part of this permit. The use. and disposal of residuals are regulated under Title
40 Code of Federal Regulations Part 257. This permit does not exempt the Permittee from complying
with the federal regulations.
This permit shall be effective from the date of issuance until November 30, 2015, shall void Permit No.
WQ0016338 issued December 28, 2006, and shall be subject to the following specified conditions and
limitations:
L SCHEDULES
1. Within 30 days of permit issuance, documentation regarding current site activity (i.e. what material is
being produced, etc.) shall be submitted to the Division of Water Quality, Aquifer Protection Section,
1636 Mail Service Center, Raleigh, NC 27699-1636.
2. Within 90 days of permit issuance, the Permittee shall submit a formal closure plan and post -closure
management care program, an implementation schedule indicating a closure date to be no longer than
12 months from the permit issuance. The closure plan, at minimum, shall include the following:
a) Confirmation that the cap is installed, or will be installed over existing fill area,
b) Permittee's fixture plans for the land, and
c) Long-term groundwater monitoring program.
Submittals prepared in accordance with the United States Environmental Protection Agency's Office
of Research and Development document entitled "Process Design Manual: Surface Disposal of
Sewage Sludge and Domestic Septage (EPA/625/R-95/002)" are acceptable.
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Note that the lagoon closure shall not allow any material to be buried in the fill area unless the
Permittee is able to demonstrate that the waste has been treated and disposed properly under the
requirements of this permit. Submit three copies of all information to the Division of Water Quality,
Aquifer Protection Section, 1636 Mail Service Center,. Raleigh, NC 27699-1636.
3. Upon completion of the clean out and closure of the lagoons, a certification shall be submitted from a
licensed North Carolina Professional Engineer certifying that the lagoons have been properly closed
in accordance with the approved closure plan.
4. The Mooresville Regional Office, telephone number [phone], shall be notified within 48
hours after (excluding weekends and holidays) the closure of the surface disposal unit has been
completed such that an in -place inspection can be made. Notification to the Aquifer Protection
Section's regional supervisor shall be made from '8:00 a.m. until 5:00 p.m. on Monday through
Friday, excluding State Holidays.
5. No later than six months prior to the expiration of this permit, the Permittee shall request renewal of
this permit on official Division forms. Upon receipt of the request, the Division will review the
adequacy of the facilities described therein, and if warranted, will renew the permit for such period of
time and under such conditions and limitations as it may deem appropriate. Please note Rule 15A
NCAC 02T .0105(d) requires an updated site map to be submitted with the permit renewal
application.
d) PERFORMANCE STANDARDS
1. The subject residuals management program shall be effectively maintained and operated at all tunes
so there is no discharge to surface waters, nor any contravention of groundwater or surface water
standards. In the event the facilities fail to perform satisfactorily, including the creation of nuisance
conditions due to improper operation and maintenance, the Permittee shall immediately cease
disposal of residuals to the surface disposal unit, contact the Mooresville regional office's Aquifer
Protection Section supervisor, and take any immediate corrective actions.
2. This permit shall not relieve the Permittee of their responsibility for damages to groundwater or
surface water resulting from the operation of this residuals management program.
3. Only residuals generated by the facilities listed in Attachment A are approved for surface disposal in
accordance with this permit.
4. Pollutant concentrations in residuals for surface disposal shall not exceed the following Ceiling
Concentrations (dry weight basis):
Distance from Surface Disposal Unit
Boundary to Closest Property Line
(meters)
Ceiling Concentration
(milligrams per kilogram)
Arsenic
Chromium
Nickel
0 to < 25
30
200
210
25 to < 50
34
220
240
50 to < 75
39
260
270
75 to < 100
46
300
320
100 to < 125
53
360
390
125 and greater
62
450
420
5. -Only residuals that are non -hazardous under the Resource Conservation and Recovery Act (RCRA)
shall be disposed in the surface disposal unit.
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6. Setbacks for surface disposal units shall be as follows:
Setback Description
Setback
feet
Habitable residence or place of public assembly under separate ownership or not to
be maintained as part of the project site
400
Property lines
50
Private or public water supply
100
Surface waters (streams — intermittent and perennial, perennial waterbodies, and
wetlands)
100
Interceptor drains or Surface water diversions (upslope)
10.
Interceptor drains or Surface water diversions (downslope)
25
Groundwater lowering system and surface water drainage ditches
25
7. The compliance boundary residual land application sites shall be specified in 'accordance with 15A
NCAC 02L .0107(b). These sites were individually permitted on or after December 30, 1983;
therefore, the compliance boundary is established at either 250 feet from the residual land application
area, or 50 feet within the property boundary, whichever is closest to the residual land application
area. An exceedance of groundwater standards at. or beyond the compliance boundary is subject to
remediation action according to 15A NCAC 02L .0106(d)(2) as well as enforcement actions in
accordance with North Carolina General Statute 143-215.6A through 143-215.6C. Any approved
relocation of the COMPLIANCE BOUNDARY will be noted.in Attachment B.
8. In accordance with 15A NCAC 02L .0108, the review boundary shall be established midway between
the compliance boundary and the residual land application area. Any exceedance of groundwater
standards at the review boundary shall require action in accordance with 15A NCAC 02L .0106.
OPERATION AND MAINTENANCE REQUIREMENTS
The residuals management program shall be properly maintained and operated at all times. The
program shall be effectively maintained and operated as a non -discharge system to prevent any
contravention of surface water or groundwater standards.
2. Upon the Water Pollution Control System Operators Certification Commission's (WPCSOCC)
classification of the facility, the Permittee shall designate and employ a certified operator in
responsible charge (ORC) and one or more certified operators as back-up ORCs in' accordance with
15A NCAC 08G .0201. The ORC or their back-up shall visit the facilities ' in accordance with 15A
NCAC 08G. 0204 and shall comply with all other conditions of 15A NCAC 08G. 0204. For more
.information regarding classification and designation requirements, please contact the Division of
Water Quality's Technical Assistance & Certification Unit at [phone].
3. A copy of this permit shall be maintained at the surface disposal unit when residuals are being
disposed. The spill prevention and control plan shall be maintained in all residuals transport and
application vehicles.
4. Appropriate measures shall be taken to control public access to the surface disposal unit during active
use, and for the 36-month period following closure of the surface disposal unit. Such controls may
include fencing and the posting of signs indicating the activities conducted at each site.
5. Adequate provisions shall be taken to prevent surface runoff from any active surface disposal unit. If
runoff cannot be prevented,'a collection system shall be installed with the capacity to handle runoff
from a 24-hour, 25-year storm event. All collected runoff shall be disposed in a Division approved
manner.
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6.. Adequate provisions shall be taken to prevent wind erosion from conveying residuals from the
surface disposal sites onto adjacent properties or into surface waters.
7. Food crops, feed crops and/or fiber crops shall not be grown on an active surface disposal unit, unless
approval has been requested and received from the Division.
8. No residuals shall be utilized for land reclamation within one foot of a seasonal high water table and
within three feet of a permanent water table.
9. No residuals shall be used as pipe bedding for sanitary sewer, storm sewer, or potable water lines.
10. The Permitee shall insure that the transportation of the residuals does not cause any adverse impact,
i.e. transport in a leak -proof track for wet material, and ensure that trucks are covered for dry
material, or otherwise protected to prevent any adverse impact resulting from operation.
IV.... MONITORING AND REPORTING REOMEMENTS
1. Any Division required monitoring (including groundwater, plant tissue, soil and surface water
analyses) necessary to ensure groundwater and surface water protection shall be established, and an
acceptable sample reporting schedule shall be followed.
2. Residuals shall be analyzed to demonstrate they are non -hazardous under the Resource Conservation
and Recovery Act (RCRA). The analyses [corrosivity, ignitability, reactivity, and toxicity
characteristic leaching procedure (TCLP)] shall be performed at the frequency specified in
Attachment A, and the Permittee shall maintain these results for a minimum of five years. Any
exceptions from the requirements in this condition shall be specified in Attachment A.
The TCLP analysis shall include the following parameters (the regulatory level in milligrams per liter
is in parentheses):
Arsenic (5.0)
1,4-Dichlorobenzene (7.5)
Nitrobenzene (2.0)
Barium (100.0)
1,2-Dichloroethane-(0.5)
Pentachlorophenol (100.0)
Benzene (0.5)
1,1-Dichloroethylene (0.7)
Pyridine (5.0) .
Cadmium (1.0)
2,4-Dinitrotoluene (0.13)
Selenium (1.0)
Carbon tetrachloride (0.5)
Endrin (0.02)
Silver (5.0)
Chlordane (0.03)
Hexachlorobenzene (0.13)
Tetrachloi•oethylene (0.7)
Chlorobenzene (100.0)
Heptachlor (and its hydroxide) (0.008)
Toxaphene (0.5)
Chloroform (6.0)
Hexachloro-1,3-butadiene (0.5)
Trichloroethylene (0.5)
Chromium (5.0)
Hexachloroethane (3.0)
2,4,5-Trichlorophenol (400.0)
m-Cresol (200.0)
Lead (5.0)
2,4,6-Trichlorophenol (2.0)
o-Cresol (200.0)
Lindane (0.4)
2,4,5-TP (Silvex) (1.0)
p-Cresol (200.0)
Mercury (0.2)
Vinyl chloride (0.2)
Cresol (200.0)
Methoxychlor (10.0)
2,4-D (10.0)
Methyl ethyl ketone (200.0)
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3. An analysis shall be conducted at the frequency specified in Attachment A, and the Permittee shall
maintain the results for a minimum of five years. The. analysis shall include the following
parameters:
Aluminum
Mercury
Chromium
Barium
Silver
Selenium
Arsenic
Nickel
Calcium
Cadmium
Manganese
Zinc
Copper
pH
Phosphorus
Lead
Magnesium
Sodium
4. Laboratory parameter analyses shall be performed on the residuals as they are disposed, and shall be
in accordance with the monitoring requirements in 15A NCAC 02B .0505.
5. The Permittee shall maintain records tracking all residual surface disposal events. At a minimum,
these records shall include the following:
a. Date and freeboard level measurements in the surface disposal unit;
b. Source and date or residuals disposed of in the surface disposal unit;
c. Volume of residuals disposed of in the surface disposal unit in gallons per year, dry tons peryear, or
kilograms per year,
d. Cumulative volume of residuals disposed of in the surface disposal unit in gallons or cubic yards (i.e.,
excluding freeboard);
e. Remainingvolume in the surface disposal unit in gallons or cubic yards (i.e., excluding freeboard); and
f. An estimate of the remaining useful disposal life for the surface disposal unit in years (i.e., excluding
freeboard).
6. Three copies of all required information, monitoring and reporting requirements as specified in
Conditions IV.2, IV.3, and IV. 5 shall be submitted annually on or before March 1 of the following
year to the following address:
Division of Water Quality
Information Processing Unit
1617 Mail Service Center
Raleigh, North Carolina 27699-1617
7. Noncompliance Notification
The Permittee shall report by telephone to the Mooresville Regional Office, telephone number (704)
663-1699, as soon as possible, but in no case more than 24 hours or on the next working day
following the occurrence or first knowledge of the occurrence of any of the following:
a. Any occurrence with the surface disposal program resulting in the land application of significant
amounts of wastes that are abnormal in quantity or characteristic.
b. Any failure of the surface disposal program resulting in a release of material to surface waters.
c. Any time self -monitoring indicates the facility has gone out of compliance with its permit
limitations.
d. Any process unit failure, due to known or unknown reasons, rendering the facility incapable of
adequate residual treatment.
e. Any spill or discharge from a vehicle or piping system during residuals transportation.
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Any emergency requiring immediate reporting (e.g., discharges to surface waters, imminent failure of
a storage structure, etc.) outside normal business hours shall be reported to the Division's Emergency
Response personnel at telephone number [phone], [phone], or [phone].Persons
reporting such occurrences by telephone shall also file a. written repoi t in letter form within five days
following first knowledge of the occurrence. This report shall outline the actions taken or proposed to
be taken to ensure that the problem does not recur.
V. INSPECTIONS
1. Prior to each bulk residuals surface disposal event, the Permittee or his designee shall inspect the
residuals storage, transport and application facilities to prevent malfunctions, facility deterioration
and operator errors resulting in discharges, which may cause the release of wastes to the
environment, a threat to human health or a public nuisance. The Permittee shall maintain an
inspection log that includes, at a minimum, the date and time of inspection, observations made, and
any maintenance, repairs, or corrective actions taken. The Permittee shall maintain this inspection log
for a period of five years from the date of inspection, and this log shall be made available to the.
Division upon request.
2. Any duly authorized Division representative may, upon presentation of credentials, enter and inspect
any property, premises or place on or related to the land application sites or facilities permitted herein
at any reasonable time for the purpose of determining compliance with this permit; may inspect or
copy any records required to be maintained under the terms and conditions of this permit; and may
collect groundwater, surface water or leachate samples.
VI. GENERAL CONDITIONS
1. Failure to comply with the conditions and limitations contained herein may subject the Permittee to
an enforcement action by the Division in accordance with North Carolina General Statutes 143-
215.6A to 143-215.6C.
2. This permit shall become voidable if the residuals land application events are not carried out in
accordance with the conditions of this permit.
3. This permit is effective only with respect to the nature and volume of residuals, described in the
permit application and other supporting documentation.
4. The issuance of this permit does not exempt the Permittee from complying with any and all statutes,
rules, regulations, or ordinances, which may be imposed by other jurisdictional government agencies
(e.g., local, state, and federal). Of particular concern to the Division are applicable river buffer rules
in 15A NCAC 02B .0200; erosion and sedimentation control requirements in 15A NCAC Chapter 4
and under the Division's General Permit NCG010000; any requirements pertaining to wetlands under
15A NCAC 02B .0200 and 02H .0500; and documentation of compliance with Article 21 Part 6 of
Chapter 143 of the General Statutes.
5. In the event the residuals program changes ownership or the Permittee changes their name, a formal
permit modification request shall'be submitted to the Division. This request shall be made on official
Division forms, and shall include appropriate documentation from the parties involved and other
supporting documentation as necessary. The Permittee of record shall remain fully responsible for
maintaining and operating the residuals program permitted herein until a permit is issued to the new
owner.
6. The Permittee shall retain a set of Division approved plans and specifications for the life of the
facilities permitted herein.
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o
i
7. The Permittee shall maintain this permit until all permitted facilities herein are properly closed or
permitted under another permit issued by the appropriate permitting authority pursuant to 15A NCAC
02T .01050).
S. This permit is subject to revocation or unilateral modification upon 60 days notice from the Division
Director, in whole or part for the requirements listed in 15A NCAC 02T .0110.
9. Unless the Division Director grants a variance, expansion of the permitted residuals program
contained herein shall not be granted if the Permittee exemplifies any of the criteria in 15A NCAC
02T .0120(b).
10. The Permittee shall pay the annual fee within 30 days after being billed by the Division. Failure to
pay the annual fee accordingly shall be cause for the Division to revoke this permit pursuant to 15A
NCAC 02T .0105(e)(3).
Permit issued this the 24t' day of August 2011
NORTH CAROLINA ENVIRONMENTAL MANAGEMENT COMMISSION
C en Vullins, Director
Division of Water Quality
By Authority of the Environmental Management Commission
Permit Number WQ0016338
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ATTACHMENT A - Approved Residual Sources
Alchem Incorporated Residuals Reuse Program
Certification Date: August 24, 2011
Permit Number: WQ001038 Version: 2.1
Owner
Facility Name
County
Permit
Biological
Maximum
Dry Tons
MonitoringFrequency for Noo-hazardous
z
Monitoring Frequency for
Number
Residuals
. Per Year
Characteristics
Metals and Nutrients s
Alchem, Inc.
Alchem, Inc. Leached Bauxite
Rowan
WQ0002702
No
0.00
N/A
N/A
Total
0.00
1 The alum production has been shut down; therefore, addition of bauxite material to the permitted disposal units is prohibited.
2 Analyses to demonstrate that residuals are non -hazardous (i.e., TCLP, ignitability, reactivity, and corrosivity) as stipulated under permit Condition IV.2.
Testing of metals and nutrients as stipulated under permit Condition IV.3.
Page 1 of I