WQ0002702_Regional Office Historical File Pre 2018 (13)

STATE OF NORTH CAROLINA IN THE OFFICE OF
MMSTRATrVE HEARINGS 08 EHR 1796
;.,
COUNTY OF ROWAN •- '
Alchem, Inc.,
Petitioner,
V.
CONSENT ORDEF
N.C. Dept. of Environment and Natural
Resources, Division of Water Quality,
Respondent.
ID C IEDWCE
APR 2 3 2009
NC DENR MRO
DWQ - /! Der Protection
Phe.Honorable BeecherR:Gray,Administrative Law Judge of the Office of
Administrative Hearings and counsel for the parties were heard in open court upon the
calendaring of the above contested case hearing on March 5, 2009. This matter was brought
before the Honorable Beecher R. Gray after the parties successfully mediated the contested case
issues on March 5, 2009. The parties, Alchem, Inc. ("Petitioner'), and the North Carolina
Division of Water Quality ("DWQ") of the North Carolina Department of Environment and
Natural Resources, ("Respondent"), hereby enter into this "Consent Order" in order to resolve
this matter in controversy, as set out below, pursuant to N.C. Gen. Stat. § 150B-31(b).
This matter comes within Respondent's purview as it relates to matters which•concern
Petitioner's Non -discharge Permits WQ0016338 and WQ0002702 and an Assessment of Civil
Penalties in the amount of thirty-four thousand five hundred forty-three dollars and seventy-three
cents, ($34,543.73) including $793.73 in investigative costs.
1

The undersigned further agreed that the Office of Administrative Hearings shall retain its
jurisdiction over this Consent Order until this civil penalty assessment is paid in full consistent
with the terms set out below, or on or before March 15, 2010.
NOW, THEREFORE, without any trial of fact or law in this matter, in mutual
consideration of the covenants set forth below, and with the consent of the parties, it is hereby
ORDERED, ADJUDGED AND DECREED that:
1. The Office of Administrative Hearings has jurisdiction to hear this case pursuant to N.C.
Gen. Stat. §§ 150B-23 and 130A-22(e).
2. All parties have been correctly designated and are properly before the Office of
Administrative Hearings. The Office of Administrative Hearings has jurisdiction over the
parties and the subject matter.
3. The Petitioner will pay a total of twenty-seven thousand dollars, $27,000 ("Settlement
Amount"), which includes investigative costs.
4. The Settlement Amount shall be paid in twelve monthly payments, beginning April 1,
2009, of two thousand, two hundred and fifty dollars to DENR, the Division of Water
Quality.
5. The payments shall be paid by check made payable to the "North Carolina Department
Environment and Natural Resources" or to "DENR," and the respective division, i.e.,
the Division of Land Resources, or the Division of Water Quality, at the following
address:
Anita LeVeaux
Attorney General's Office
Environmental Protection Division
2

9001 Mail Service Center
Raleigh, NC 27699-9001
6. The breach of any condition of Paragraphs one, two, three or four by Petitioner will
render immediately due and payable the Total Civil Penalty Assessment, thirty-four
thousand five hundred forty-three dollars and seventy-five cents, the Petitioner will be
given credit for all prior payments.
7. Petitioner and DENR expressly stipulate and acknowledge that, by entering into this
Agreement, the. sole issue in any action by DENR is to collect the Total Civil Penalty
Assessment amount of the civil penalty assessment, as set out above; in accordance with
the terms of paragraph four above and will be limited to the Petitioners' compliance with
the terms of this Agreement. Only as it relates to the matter before this tribunal, i.e., Case
No. PC-2008-0026; NOV-2008-PC-0134.
8. DENR agrees to accept the Settlement Amount in complete satisfaction of the civil
penalty assessments subject to the terms of this Agreement, i.e., "the dumping matter"
only DENR Case No. PC-2008-0026; NOV-2008-PC-0134.
9. Nothing in this Agreement shall restrict any right of Respondent, DENR to take
any enforcement action against Petitioner for any future, occurring after June 30, 2008,
violations as it relates to this matter. See. No. 8 above.
10. This Agreement shall be binding upon the parties and is entered into knowingly,
intelligently, and voluntarily.
11. Defendant Alchem, Inc. shall, on or before April 1, 2009, pay $2,250, monthly consistent
with the terms of this Consent Order.
3

12. The parties shall comply with all terms of this Consent Order.
13. Nothing in this Consent Order shall restrict the right of Petitioner to contest a new or
subsequent enforcement action arising outside of the aforesaid rules and regulations.
14. The Court shall retain continuing jurisdiction in this case until all parties have complied
with all provisions of this Consent Order. Full compliance with the terms and conditions
of this Consent Order as set forth, above, shall complete this matter.
15. The contempt provisions of Article 2, Chapter 5A of North Carolina General Statutes
shall be available to enforce this Consent Order.
16. This Consent Order may be signed out -of -court, out -of -term, out -of -county and out -of -
district.
17. Judge Beecher R. Gray and the parties further agreed that the deadline for completion of
payments shall be on or before the March 15, 2010.
THEREFORE, with the consent of the parties as evidenced by the signatures below, it is
hereby ordered that the Respondent will make a payment of $2,250 every month for twelve
months until the total Settlement Amount has been paid starting April 1, 2009. Failure to make
timely payments will result in the full and complete payment of the civil penalty assessed
becoming due and payable to the Respondent, i.e., thirty-four thousand five hundred forty-three
dollars and seventy-five cents, ($34,543.73) minus any and all prior payments.
This the day of April 2009.
')az
Beecher R.-Gray
Administrative Law Judge Presiding
Office of Administrative Hearings
0

ROY COOPER
ORNEY GE
Anita LeVeaux
Assistant Attorney General
Attorney for Respondent
Sean ker, Esq.
Wood on, S ers, Lawther, Short, Parrott,
Walker and Abramson, LLP
Attorney for Petitioner
Randall Andrews
President,
Alchem, Inc.
Petitioner
� [\\ V 9 \ IN3.`�� oci
Andrew H. Pitner
Environmental Program
Supervisor III
DESR, Water Quality Division
Aquifer Protection, MRO
5
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A copy of the foregoing was mailed to:
Sean C Walker"
Woodson Sayers Lawther Short
Parrott & Walker LLP
PO Box 829
Salisbury, NC 28145
ATTORNEY FOR PETITIONER
Anita LeVeaux
Assistant Attorney General
NC Department of Justice
9001 Mail Service Center
Raleigh, NC 27699-9001
ATTORNEY FOR RESPONDENT
This the 14th day of April, 2009.
Office of Administrative Hearings
67144 Mail Service Center
Raleigh, NC 27699-6714
(919) 4313000
Fax: [phone]

RECEIVED
N.C. AT. ORNEY GENERAL
Environmental Division

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Parcel ID: 358 024
Property Address:
Date Sold:
Owner:
8135 RED
Sale Inst.:
ALCHEM INC
Legal Description:
Sale Amt.: $0
8135 RED RD
32.69AC
Land FMV: $209,438
ROCKWELL NC 28138-8557
Acreage: 32.69 acres
Assessed Land Value:$209,438
Deed Book: 597 Pg: 714
Building Value: $196,790
Deed Year: 2001
Total Assessed Value:$406,228
DISCLAIMER: This information was prepared from the Rowan County, NC Geographic Information System. Rowan
County has made substantial efforts to ensure the accuracy of location and labeling information contained on this site.
The information provided is a representation of various City and County data sources and does not serve as an official
map. Rowan County promotes and recommends the independent verification of any information contained on this site
by the user.
Rowan County makes no warranty or other assertion as to the fitness of the maps for any particular purpose and
neither Rowan County nor it's agents or employees shall be liable for any claim alleged to have resulted from any use
thereof.
http://www.webgis.net Anderson & Associates, Inc. http://www.andassoc.com
http://arcims2.webgis.net/ne/Rowan/printable.asp?process=idl &x2=1576688.13 &y2=6643... 5/5/2009

ALCHEM, INC. V. NC DENR, DWQ
COUNTY OF ROWAN
2008-PC-0026
NPDES PERMIT WQ0002702
08 EHR 1796 Civil Penalty Appeal
DATE DESCRIPTION
01-10-1990 Permit No. WQ0002702 (Initial Issuance)
12-28-04 Permit No. WQ0002702, effective from the date of issuance to
November 30, 2009. The current permit voids permit issued
on January 21, 1999. (Current Permit)
28-06 Permit No. WQ0016338, effective from the date of issuance to
November 30, 2011. (Current Permit)
ALCHEM v. NC DENR, DWQ Non Discharge Permit WQ0016338 and
WQ0002702
Photo- Red Road Facility, Rockwell County - 4 dump piles in foreground
& rest of dumping near tree line
Photo: Maggie Lane Dumpsite
Photo -Davidson Co GIS data 1/25/08/ dump piles highlighted
03-27-08 Letter Re: Inspection Report and Notice of Violation -Red Road Facility
w/Recommendation for Enforcement
To: Randall Andrews, ALCHEM
From: Andrew H. Pinter, DENR
04-08-08 Letter Re: NOV - 2008-PC-0134
To: Andrew H. Pinter, DENR
From: Robert A. Wolcott, Chief Operations Officer, ALCHEM
04-17-08 FILE NOTE: Cleanup completed
04-08-08 Cover letter Re: Bauxite Sand Process Being done off site
04-07-08 Letter Re: See 6-13
From Randall Andrews, President
Industrial and Agricultural Chemicals, Inc.
To: Bob Wolcott
EXHIBIT
1-A1
1-A2
2
3
4-A
4-B
4-C
4-D
E

DATE DESCRIPTION (2)
EXHIBIT
11-16-05 Material Safety Data Sheet 7
Revised 12-08-06
06-30-08 Memo To: Ed Hardee From: Andrew Pinter, 8'
Prepared by Ellen Huffman
Attached: Summary 8-A
Enforcement Case Assessment Factors 8-B
Assessment Factors 8-C
C0CAWRR@ -�:: � ssessrraent c f ivil eri'alty for Violations of NC Gen Stat 143-215.1 and 9
Non -Discharge Permit Nos: WQ0016338 & WQ0002702
0a�29=086Fet�ti`an for a Contested Case Hein 10
ALCHEM HISTORY
A. HISTORICAL SUMMARY (A)
A
B. RELEVANT HISTORY (B-N)
Report of Complaint Investigation
12-30-85
B
Newspaper article Re: ALCHEM
C
Permit WQ0002702
01-10-90
D
Notice of Violation
10-25-90
E
Notice of Violation
08-19-03
F
Settlement Agreement
03-02-04
G
Notice of Violation/Notice of Recommendation of Enforcement
01-12-05
H
Notice of Violation/Notice of Recommendation of Enforcement
12-20-06
I
Letter to DENR Re: Response to January 19, 2007 letter
01-26-07
J
Letter to DENR Re: Meeting on Wednesday
02-09-07
K
Letter to DENR Re: Problems discussed at meeting
02-19-07
L
Settlement Agreement
11-27-07
M
Telephone Notes, Illegal Disposal
02-08-08
N

L]
EXHIBIT
I
��V w l A 1
Watol1 OF EHVOJOU"
2z 1990
State of North Carolina
Wabpent of Environment, Health and Natural Resources
Divi$ion of Environmental Management
512 North Salisbury Street • Raleigh, North Carolina 27611
James G. Martin, Governor
William W. Cobey, Jr., Secretary
Mr. Randall F. Andrews
Alchem, Inc.
Route 2, Box 521-C
8135 Red Road
Rockwell, NC 28377
Dear Mr. Andrews:
R. Paul Wilms
Director
January 10, 1990
Subject: Permit No. WQ0002702
Alchem, Inc.
Industrial Recycle - Bauxite Process
Rowan County
In accordance with your application received November 17, 1989, we are forwarding
herewith Permit No. WQ0002702, dated January 10, 1990, to Alchem, Inc. for the construction
and operation of the subject recycle facility.
This permit shall be effective from the date of issuance until December 31, 1994, and shall
be subject to the conditions and limitations as specified therein.
If any parts, requirements, or limitations contained in this permit are unacceptable to you,
you have the right to request an adjudicatory hearing upon written request within 30 days
following receipt of this permit. This request must be in the form of a written petition, conforming
to Chapter 150B of North Carolina General Statutes, and filed with the Office of Administrative
Hearings, P.O. Box 11666, Raleigh, NC 27604. Unless such demands are made this permit shall
be final and binding.
One set of approved plans and specifications is being forwarded to you. If you need
additional information concerning this matter, please contact Mr. William Barlow at 919/
733-5083.
Si
cerely,
harles R. W
Acting Direct
cc: Rowan County Health Department
✓Mooresville Regional Office
Environmental Hydrogeological Consultants
Groundwater Section
Pollution Prevention Pays
P.O. Box 27687, Raleigh, North Carolina 27611-7687 Telephone [phone]
An Equal Opportunity Affirmative Action Employer

NORTH CAROLINA
ENVIRONMENTAL MANAGEMENT COMMISSION
DEPARTMENT OF ENVIRONMENT, HEALTH AND NATURAL RESOURCES
RALEIGH
RECYCLE SYSTEM 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
Alchem, Inc.
Rowan County
FOR THE
construction and operation of two (2) lagoons each approximately 50' W x 200' L x 10' D and all
associated pipes, valves and appurtenances to serve Alchem, Inc. with no discharge of wastes to
the surface waters, pursuant to the application received November 17, 1989, and in conformity
with the project plan, specifications, and other supporting data subsequently filed and approved
by the Department of Environment, Health and Natural Resources and considered a part of this
permit.
This permit shall be effective from the date of issuance until December 31, 1994, and shall
be subject to the following specified conditions and limitations:
1. This permit shall become voidable unless the facilities are constructed in accordance with
the conditions of this permit, the approved plans, specifications, and other supporting
data.
2. This permit is effective only with respect to the nature and volume of wastes described in
the application and other supporting data.
3. The facilities shall be properly maintained and operated at all times.
4. This permit is not transferable. In the event there is a desire for the facilities to change
ownership, or there is a name change of the Permittee, a formal permit request must be
submitted to the Division of Environmental Management accompanied by an application
fee, documentation from the parties involved, and other supporting materials as may be
appropriate. The approval of the request will be considered on its merits and may or may
not be approved.
5. Upon completion of construction and prior to operation of this permitted facility, a
certification must be received from a professional engineer certifying that the permitted
facility has been installed in accordance with this permit, the approved plans and
specifications. Mail the Certification to the Permits and Engineering Unit, P.O. Box
27687, Raleigh, NC 27611.

6. In the event that the facilities fail to perform satisfactorily, including the creation of
nuisance conditions, the Permittee shall take immediate corrective action, including those as
may be required by this Division, such as the construction of additional or replacement
wastewater treatment or disposal facilities.
7. The Mooresville Regional Office, phone no. 704/663-1699, shall be notified at least
forty-eight (48) hours in advance of operation of the installed facilities so that an in -place
inspection can be made. Such notification to the regional supervisor shall be made during
the normal office hours from 8:00 a.m. until 5:00 p.m. on Monday through Friday,
excluding State Holidays.
8. The sludge generated from these treatment facilities must be disposed of in accordance with
General Statute 143-215A and in a manner approved by the North Carolina Division of
Environmental Management.
9. The issuance of this permit shall not relieve the Permittee of the responsibility for damages
to surface or groundwaters resulting from the operation of this facility.
10. The facilities shall be effectively maintained and operated as a non -discharge system to
prevent the discharge of any wastewater resulting from the operation of this facility.
11. Diversion or bypassing of untreated wastewater from the treatment facilities is prohibited.
12. Freeboard in the lagoon shall not be less than two feet at any time.
13. Any monitoring deemed necessary by the Division of Environmental Management to insure
surface and ground water protection will be established and an acceptable sampling
reporting schedule shall be followed.
14. Adequate inspection, maintenance, and cleaning shall be provided by the Permittee to
insure proper operation of the subject facilities.
15. The Permittee or his designee shall inspect the wastewater recycle facilities to prevent
malfunctions and deterioration, operator errors and discharges which may cause or lead to
the release of wastes to the environment, a threat to human health, or a nuisance. The
Permittee shall keep an inspection log or summary including at least the date and time of
inspection, observations made, and any maintenance, repairs, or corrective actions taken
by the Permittee. This log of inspections shall be maintained by the Permittee for a period
of three years from the date of the inspection and shall be made available upon request to
the Division of Environmental Management or other permitting authority.
16. Any duly authorized officer, employee, or representative of the Division of Environmental
Management may, upon presentation of credentials, enter and inspect any property,
premises or place on or related to the disposal site and facility at any reasonable time for the
purpose of determining compliance with this pemrit; may inspect or copy any records that
must be kept under the terms and conditions of this permit; or may obtain samples of
groundwater, surface water, or leachate.
17. The annual administering and compliance fee must be paid by the Permittee within thirty
(30) days after being billed by the Division. Failure to pay the fee accordingly may cause
the Division to initiate action to revoke this permit as specified by 15 NCAC 2H .0205
(c)(4)•
18. Failure to abide by the conditions and limitations contained in this permit may subject the
Permittee to an enforcement action by the Division of Environmental Management in
accordance with North Carolina General Statute 143-215.6.
2

19. The issuance of this permit does not preclude the Permittee from complying with any and
all statutes, rules, regulations, or ordinances which may be imposed by other government
agencies (local, state, and federal) which have jurisdiction.
20. A set of approved plans and specifications for the subject project must be retained by the
Permittee for the life of this project.
21. Noncompliance Notification:
The Permittee shall report by telephone to the Mooresville Regional Office,
telephone no. 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 at the wastewater treatment facility which results in the treatment of
significant amounts of wastes which are abnormal in quantity or characteristic, such
as the dumping of the contents of a basin or tank; the known passage of a slug of
hazardous substance through the facility; or any other unusual circumstances.
b. Any process unit failure, due to known or unknown reasons, that render the facility
incapable of adequate wastewater treatment such as mechanical or electrical failures
of pumps, aerators, compressors, etc.
C. Any failure of a pumping station, sewer line, or treatment facility resulting in a
by-pass directly to receiving waters without treatment of all or any portion of the
influent to such station or facility.
d. Any time that self -monitoring information indicates that the facility has gone out of
compliance with its permit limitations.
Persons reporting such occurrences by telephone shall also file a written report in letter
form within 15 days following first knowledge of the occurrence. This report must outline
the actions taken or proposed to be taken to ensure that the problem does not recur.
22. The Permittee shall employ a certified wastewater treatment plant operator to be in
responsible charge of the wastewater treatment facilities. The operator must hold a
certificate of the grade at least equivalent to the classification assigned to the wastewater
treatment facilities by the Certification Commission. Within thirty days after the
wastewater treatment facilities are 50% complete, the Permittee must submit a letter to the
Certification Commission which designates the operator in responsible charge.
23. The lagoon shall have a liner of natural material at least one (14 foot in thickness at all
locations with a hydraulic conductivity of no greater than 1 x 10- centimeters per second
when compacted. Following installation and inspection of the lagoon liner, and prior to
waste disposal operations, verification of the liner's compliance with hydraulic conductivity
and thickness specifications must be provided to the Division of Environmental
Management, Groundwater Section, by the project engineer.
24. The Permittee, at least six (6) months prior to the expiration of this permit, shall request its
extension. Upon receipt of the request, the Commission will review the adequacy of the
facilities described therein, and if warranted, will extend the permit for such period of time
and under.such conditions and limitations as it may deem appropriate.
25. The recycle lagoon shall not be located within 100 feet of water supply well.
3

Permit issued this the loth day of.January, 1990
TH CAROLINA NVIR NMENTAL MANAGEMENT CON USSION
Charles R. Wakild, g for
Division of Environmen anagement
By Authority of the Environmental Management Commission
Permit No. WQ0002702
January 10, 1990
Engineer's. Certification.
as a duly registered Professional Engineer in the State of North
Carolina, having been authorized to observe (periodically, weekly, full time) the construction of the
project, for the
Project Name Location
Permittee hereby state that, to the best of my abilities, due care and diligence was used in the
observation of the construction such that the construction was observed to be built within substantial
- compliance and intent of the approved plans and specifications.
Signature Registration No.
Date
W

QF W A TF9 Michael F: Easley, Govemor /
William G. Ross Jr., Secretary
Cq T North Carolina Department of Environment and Natural Resources
--I Alan W. Klimek, P.E., Director
O 'C Division of Water Quality
EXHIBIT
December 28, 2004
1 _A2
Mr. Randall Andrews
Alchem, Inc.
81-35 Red Road
Rockwell, NC 28138
Subject: Permit No: WQ0002702
Alchem, Incorporated
Industrial Recycle -Bauxite Process
Rowan County
Dear Mr. Andrews:
In accordance -with your request for, renewal received September 23, 2004, we are forwarding herewith
Permit No. WQ0002702, dated December 28, 2004, to Alchem, Inc. for. the continued operation of the three (3)
lagoon recycle system.
This permit shall be effective from the date of issuance until November 30, 2009, shall void Permit No.
-.WQ0002702 issued January.21, 1999, and shall be subject to the conditions and limitations as specified therein.
Please pay particular attention to the monitoring requirements in this permit. Groundwater sampling is now
required in monitor wells MW-1, MW-2, and MW-3 .and surface water sampling will be performed on the stream
behind the property every February, .June,. and October for Total Dissolved Solids, pH, Sulfates, Specific
`Conductivity; Aluminum, Total Suspended Solids, and water level. A scaled map of the facility must be prepared
and submitted to the Division. The recycled water will be required to have a pH• of not less than 6.0 as it leaves -
the wash area and goes into the storage lagoon. A site life. estimate and a long range plan"for future residuals
disposal are also required. The material removed from Lagoons 1. & 2 during the next lagoon cleanout is required
to have pH readings taken and 'documented, and . the. liners of each lagoon ' are to be inspected and tested (as
necessary) by a Professional Engineer. Repairs are to be made as needed. -The pern ittee is required to seek
alternate disposal/re-use options -for the fill and. submit a proposed schedule for their implementation. The City
Water Supply Line is. required to be relocated to the upper perimeter of the residual fill area. Failure to establish
an adequate system for collecting and maintaining the required operational information will result in future
'compliance problems. The berm which has been constructed around the residual fill area is to be maintained so as
to keep the fill and/or accumulated rainwater from leaving the fill area:
This permit is being renewed by itself and is not being combined with Permit No. WQ0016338 at this
time, as -the. application for the renewal of Permit No. WQ0016338 has not yet been received by the Division.
Carolina
Aquifer Protection Section 1636 Mail Service Center Raleigh, NC 27699-1636 Phone [phone] Customer Service
Internet: h2o.enr.state.nc.us 2728 Capital Boulevard Raleigh, NC 27604 FAX [phone].623-6748
Art Equal Opportun'tlylAStrmative AcHm Employer — 50% Recyded110% Pout Consumer Paper

A Notice of Violation was issued against the facility under Permit No. WQ0002702 on January 7, 2001
for violations of State Groundwater Quality Standards as.evidenced by the laboratory analyses of groundwater
samples taken during the course of monitoring on -site monitor wells.
A Notice of Violation was also issued against the facility under Permit No. WQ0002702 on May 12, 2003
in response to a release of residuals into a drainage/wooded area and an intermittent stream. The permittee was
cited for failing to properly operate and maintain the facility as a non -discharge facility, failure to cease reuse
operation once nuisance conditions existed, failure to provide adequate provisions to prevent surface runoff from
conveying pollutants into surface waters, and failure to notify the Division of the residuals release into the
receiving stream.
If any parts, requirements, or limitations contained in this permit are unacceptable, you have the right to
request. an adjudicatory hearing upon written request within thirty (30) days following receipt of this permit. This
request must be in the form of a written petition, conforming to Chapter 150B of North Carolina General Statutes,
and filed with the Office of Administrative Hearings, 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 David Goodrich at (919) 715-
6162.
Sincere
//-Alan W. Klimek, P.E.
cc: Rowan County Health Department
Mooresville Regional Office, Aquifer Protection Section
Technical Assistance and Certification Unit
gizqr,,Prtotee:ton+;CerLtraTEiles
Permit •Files

DEPARTMENT OF ENVIRONMENT AND NATURAL RESOURCES
RALEIGH
m
RECYCLE SYSTEM 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
Alchent, Incorporated
Rowan County
continued operation of a wastewater recycle system consisting of 3 settling lagoons to serve Alchem, Inc., with no
discharge of wastes to the surface waters, . pursuant to . the application received September 23, 2004, and in
conformity with the project plan, specifications, and other supporting data subsequently filed and approved by the
Department of Environment and.Natural Resources and considered a part of this permit.
This permit shall be effective from the date. of issuance'until November 30, 2009, shall void.Permit No.
WQ0002702 issued January 21, 1999, and shall be subject to the following. specified conditions and limitations: .
1.. This permit shall become voidable unless the facilities are constructed in accordance with the conditions of
this permit, the approved plans and specifications; and other supporting data..
2. This permit is effective only with respect to the nature and volume of wastes described in the application
and other supporting data.
3. .The. facilities shall be properly maintained and operated at all times.
4. This permit is-not.transferable. In the event there is a desire for the facilities'to change ownership, or there
is a name change of the Permittee, a formal permit request -must be submitted to the Division of Water
Quality (Division) accompanied. by. an application fee, documentation from the parties involved, and other
supporting materials as may be appropriate. The approval of the request will be considered on its merits
and may or may not be approved.
-5. In the event that the facilities fail to perform satisfactorily, including the creation of nuisance conditions, the
Permittee. shall take immediate corrective action, including those actions that may be required by this
Division, such as.the construction of additional or replacement treatment or disposal facilities.
6. J The residuals generated from these treatment facilities must be disposed in accordance with General Statute
143-215.1 and in a manner approved. by the Division.
7. The issuance of this permit shall not relieve the Permittee of the responsibility, for damages to surface or
groundwaters resulting from the operation of this facility.
1

r
The facilities shall be effectively maintained and operated as a non -discharge system to prevent the
discharge of any wastewater resulting from the operation of this facility.
9. Diversion or bypassing of untreatedwastewater from the treatment facilities is prohibited.
Freeboard in all of the lagoons shall not be less than two feet at any time.
11. Waste -level gauges, to monitor waste levels in the settling lagoons, shall be installed within 60days of
issuance of this permit. These gauges shall .have readily visible permanent markings indicating the
maximum liquid level at.the top of the temporary liquid storage volume, minimum liquid level at the
bottom of the temporary liquid storage volume, and top of the dam elevations. Caution must be taken not to
damage the integrity of the liner when installing the gauges. .
r12.. A protective vegetative cover shall be established and maintained on all earthen basin embankments
(outside toe of embankment to .maximum pumping elevation), berms, pipe runs, erosion control areas, and
surface water diversions. Trees, shrubs, and other woody vegetation shall not be allowed to grow on the
earthen basin dikes or embankments. Earthen basin embankment areas shall be kept mowed or otherwise
controlled and accessible.
\1(3. Within ninety (90) days of permit issuance, the recycled system shall be required to keep the recycled water"
at a pH of not less than 6.0 Standard Units as it leaves the wash area and goes to the storage lagoon.
14. Within ninety (90) days of permit issuance, the permittee shall submit a site life estimate for the fill area.
15.: .'Within ninety (90) days of permit issuance, the permittee shall submit a long-range plan for future residuals
disposal that shall include a timetable for implementation.
16. During the upcoming clean out of Lagoons 1 & 2 (scheduled for the spring season of 2005), a pH reading
shall be taken and documented on every load of material removed from the lagoon and placed in the sand
fill area. This information. shall be conveyed to the Division within thirty (30) days of completion of the
clean out procedure.
17. At the conclusion of the clean out of Lagoons 1 & 2 -(scheduled for '•the spring season of 2005), the clay
liners of the lagoon shall be inspected and tested (as necessary) by a Professional Engineer. Repairs to the
liners shall. be made as needed and prior to the resumption of use.
1', The permittee shall actively seek alternate disposal/re-use options for the fill produced at the facility. An
` alternate means of .disposal, along with a proposed schedule for its implementation, -shall be identified
within one (1) .year of permit issuance and reported by letter to the Division's Central Office at the Aquifer
Protection Section, 1636 Mail Service Center, Raleigh, NC 27699-1636 and to .the Mooresville Regional
Office at the Aquifer Protection Section, 610 East Center Avenue/ Suite 310, Mooresville, NC 29115.
19. The City. Water Supply Line shall be relocated to the upper.perimeter of the residual fill area within one (1)
year of permit issuance. Any problems with implementing this condition in a timely fashion shall be
reported by letter to the Division's Central Office at the Aquifer Protection Section, 1636 Mail. Service
Center, Raleigh, NC 27699-1636 and to the Mooresville Regional Office at the Aquifer Protection Section,
610 East Center Avenue/ Suite 301, Mooresville, NC 28115.
20. Any monitoring deemed necessary by the Division to insure surface and ground waterprotection will be
established and an acceptable sampling reporting schedule shall be followed. .
'Adequate ,inspection, -maintenance, and cleaning shall be provided by the Pernuttee to insure proper
operation of the subject facilities. The berm which has been constructed. around the residual fill area shall be
maintained so as to keep the fill and/or accumulated rainwater from leaving the fill area.
2

. t .-
22., The Permittee or his designee shall inspect the wastewater recycle facilities to prevent malfunctions and
deterioration, operator errors and discharges which may cause or lead to the released. wastes to the
environment,,a threat -to human health, or a. nuisance. The Permittee shall tmirgit W—inspectiorirlog-Jor
summary including at .least the date and time of inspection, observations made, and any- maintenance,
repairs, or corrective actions taken by the Permittee. This log of inspections shall be maintained by the
Permittee for a period of three years from the date of the inspection and shall be made available to the
Division or other permitting authority, upon request.
23. a Any duly authorized officer, employee, or representative of the Division may, upon presentation of
credentials, enter and inspect any property, premises or place on or .related to. the recycle system at any
reasonable time for the -purpose of determining compliance with this permit, may inspect or copy any
records that must be maintained under the terms. and conditions.of.this.pennit, and may obtain samples .of
groundwater, surface water, or leachate.
24: The annual administering and compliance fee must be paid by the Permittee within thirty (30) days. after
being billed by the Division: Failure to pay -the fee accordingly may cause the Division to initiate action to
revoke this permit as specified by.15A NCAC 2H .0205. (c)(4)..
25. Failure to abide by the conditions and limitations contained in this permit may subject the Permittee to an
enforcement action by the Division in accordance with North Carolina General Statute.143-215.6A to 143-
215.6C.
26. 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 government agencies (local, state, and federal)
which have jurisdiction, including but not limited to applicable river buffer rules in 15A NCAC 2B.0200,
erosion and sedimentation control requirements in 15A NCAC Chapter 4 and under the Division's General
Permit NCG010000, and any requirements pertaining , to wetlands under .15A NCAC 2B .0200 and 2H
.0500.20.
.27. A set of approved plans and specifications for. -.the subject project must be retained by the Permittee for the
life of this project.
28. 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 at 'the .wastewater treatment facility which results in the treatment of significant
amounts of wastes which are abnormal in quantity or characteristic, such as the dumping of the contents
of a basin or tank, the known passage of a slug of hazardous substance through the facility, or any other
unusual circumstances;
b.. Any process unit failure, due to known. or unknown reasons, that renders the facility incapable of
adequate wastewater treatment, such as mechanical or electrical failures of pumps, aerators,
compressors, etc.;
c. Any failure of a pumping station, sewer line, or treatment facility resulting in a by-pass directly to
receiving waters without treatment of all or any portion of the influent to such station or facility; or
d. Any time'that self -monitoring information indicates that the facility is not in compliance with its permit
limitations. _
3

Occurrences outside normal business hours may also be reported to the Division's Emergency Management
personnel at telephone number [phone], or [phone]. Persons. reporting such occurrences by
telephone shall also file a written report in letter: form .within five (5) days following first knowledge of the
occurrence. This reportmust outline the actions taken or proposed to be taken to ensure that the problem
does not recur.
29. Upon classification of the wastewater treatment and spray irrigation facilities by the Water Pollution
Control ..System Operators - Certification Commission (WPCSOCC), the Permittee shall designate and
employ a certified operator. to be in`responsible charge (ORC) and one or more certified operator(s) to be
back-up ORC(s) of .the facilities in accordance with 15A NCAC 8G..0201. The ORC shall visit the
facilities in accordance with 15A NCAC 8G .0204 or as specified in this permit and shall comply with all
other conditions specified in these rules.
30. The recycle lagoons shall not be located within 100 feet of water supply wells.
31. Within sixty (60) days of permit issuance, the. permittee shall submit two original copies of a scaled site
map (scale no greater than 1 "=100'); however, special provisions may be granted upon prior approval for
large properties. The.map(s) must include the following information:
a..' . The location and identity of each monitoring well.
b. The location of major components of the waste disposal system.
c.. The location of property boundaries within 500 feet of the disposal area(s).
d. The latitude and longitude of the established horizontal control monument.
e: The elevation of the.top of the well casing (which shall be known as the "measuring point"). relative
to a common datum.
f. The depth of water below the measuring point at the time the measuring point is established.
,g. The location of Review and Compliance Boundaries.
h. . The date the map is prepared and/or revised.
32. Control monuments shall be installed in such a manner and made of such materials that the monument will
not be destroyed due to activities that may take place on the property. Maps and any supporting
documentation shall be sent to the Aquifer Protection Section's Central Office at 1636 Mail Service Center,
Raleigh, NC 27699-1636, and to the Mooresville Regional Office at the Aquifer Protection Section, 610
East Center.Avenue/ Suite 301, Mooresville, NC 28115:
The permittee is responsible for the geographic accuracy of any map submitted, however produced
33. Monitor wells -MW-1, MW-2, MW-3, and the stream behind the property shall all be sampled every
February, June. and October for the following parameters:
Total Dissolved Solids
Sulfates (SO4)
'Aluminum
Water. Level
pH
Specific Conductivity
Total Suspended Solids
The measurement of water levels must be made prior to sampling for the remaining parameters. The depth
to water in each well shall be measured from the surveyed point on the top of the casing.
The results of the sampling and analysis shall be received on the most -recent version of "Groundwater
Quality Monitoring: Compliance Report Form" (i.e., GW-59 Form) with copies of the laboratory analyses.
attached by the Division's. Aquifer .Protection Section at the following address on or before the last working
day of the month following the sampling month:
i

NCDENR-DWQ
Information Processing Unit
1617 Mail Service Center
Raleigh, NC 27699-1617
Updated blank reporting forms may be downloaded from the web site for. the Division's Aquifer Protection
Section at hM://gw.ehnr.state.nc.us/ or requested from the address listed above.
34. The COMPLIANCE BOUNDARY for the disposal system is specified by regulations in 15A NCAC 2L,
Groundwater Classifications and Standards. The Compliance Boundary for the disposal system individually
permitted on or after .December 30, 1983 is established at either 250 feet from the waste disposal area, or 50
feet within the property boundary, whichever is' closest to the waste disposal area. An exceedance of
Groundwater Quality Standards at or'beyond the Compliance Boundary is subject to. remediation action
according to 15A NCAC 2L .0106(d)(2).
35. 'The REVIEW BOUNDARY is established around the disposal system midway between the Compliance
Boundary and the perimeter of the waste disposal area. Any exceedance of standards at the Review
Boundary shall require action in accordance with 15A NCAC 2L .0106(d)(1).
36. Any additional groundwater quality monitoring, as deemed necessary by the Division, shall be provided.
37. Perinittee, at least six (6) months prior to the expiration of this permit, shall request its extension. Upon
receipt of the request, the Commission will review the adequacy of the facilities described therein, and if
warranted, will extend the permit for such period of time and under such conditions and limitations as it
-may deem appropriate.
Permit issued this the 22nd day of December, 2004
NORTH OLINA ENVIRONMENTAL MANAGEMENT COMMISSION
i
Alan W. Klimek, P:E., Director
Division of Water Quality .
By Authority of the Environmental Management Commission
Permit Number WQ0002702

- OaO� W ATFRQG
co r
Michael F. Easley. Governor
William G. Ross Jr.. Secretary
North Carolina Department of Environment and Natural Resources
December 28, 2006
CERTIFIED MAIL — # 7006 2150 0003 5466 1323
RETURN RECEIPT REQUESTED
Randall F. Andrews .
ALCHEM, Inc.
8135 Red Road
Rockwell, -NC 28138
Alan W. Klimek, P.E: Director
Division of Water Quality
EXHIBIT
a
a
Subject: Permit No. WQ0016338
ALCHEM, Inc.
Bauxite Residuals Monofill
Surface Disposal Program
Rowan County
Dear Mr. Andrews:
In accordance with your application received on September 30, 2004, we are forwarding herewith
Permit No. WQ0016-38, dated December 28, 2006, to ALCHEM, Inc. for the on -site surface disposal of a
silica residual from bauxite digestion. This permit shall be effective from the date of issuance until November
30, 2011, shall void Permit No. WQ0016338 issued March 1, 1999, and shall be subject to the conditions and
limitations as specified therein. IA , - 0i � � ee`1
According to the engineering report prepared by Boyle Consulting Engineers, PLLC, on October 24,
2005 entitled "Report of Preliminary Geotechnical Exploration & Earthen Embankment Analysis", the
existing fill at the site is not suitable to provide direct foundation support for the intended construction of
buildings for industrial purposes. The existing berm that contains stormwater runoff from the bauxite fill area
was judged to be unsuitable to remain as constructed. A recent visit to the site by NCDENR personnel
disclosed some seepage locations along the outside of the berm at elevations below the surface of the ponded
stormwater runoff. In view of these inadequacies, the .Division is requiring that the berm be replaced or
properly repaired and that the structural and. hydraulic integrity of the new or repaired structurebe verified by
a licensed engineer (Condition I.1.). The addition_of further bauxite material to the fill area is prohibited until
this is accomplished and the engineer's report is received by the Division (Condition I.2.). Please pay
particular attention to the monitoring and reporting requirements contained in this permit. Failure to establish
an adequate system for collecting and maintaining the required operational information will result in future
compliance problems.
An Assessment of Civil Penalties and a Notice of Violation was issued against the facility under.
Permit Number WQ0016338 on August 18 and 19, 2003, respectively, in response to a release of residuals into
a drainage/wooded area and an intermittent stream. The permittee was cited for inadequate corrective actions
in -response to a release of residuals into an unnamed tributary to Second Creek and the resulting depression of
PH in the water of the tributary. 141 Carolina
iura!!y
Aquifer Protection Section 1636 Mail Service Center Raleigh, NC 21699-1636 Phone [phone] Customer Service
Internet: httpJ/h2o.cnr.state.nc.us 2728 Capital Boulevard Raleigh, NC 27604 Fax [phone]
An Equal opportunity/Affirmative Action Employer— 50% Recycledl10% Post Consumer Paper

An earthen berm has since been constructed completely around the fill material area to correct the
)roblem and to keep the fill on the site. Although the fill is currently contained, the capacity of the enclosed
Lrea is limited, and the permittee is required to submit a site life estimate for the fill area, as well as a long-
range plan for residuals disposal that shall include a timetable for implementation, and actively seek alternate
disposal/reuse options with a proposed schedule for implementation, under the conditions of Permit Number
WQ0002702, issued on December 28, 2004. Permit Number WQ0002702 further requires the earthen berm to
be maintained so as to keep the fill and/or accumulated rainwater from leaving the fill area. In addition, this
Permit WQ0002702 also required submittal of a map per Condition 31. within 60 days of permit issuance; the
Division has no record of that submission. Submittal of the information required in Permit WQ0002702 is
necessary to evaluate the adequacy of this residuals management system Oin�tt rn'auk�be er opened."to
- °---.,. _ _ __a xs,� ..,4'.;..,�„�;�t,nr, cr,V�rn�d•t'f*tl
If any parts, requirements, or limitations contained in this permit are unacceptable, you have the right
to request an adjudicatory hearing upon written request within thirty (30) days following receipt of this permit.
This request must be in the form of a written petition, conforming to Chapter 150B of North Carolina General
ce of Administrative Hearings, 6714 Mail Service Center, Raleigh, North
Statutes, and filed with the Offi
Carolina 27699-6714. Unless such demands are made, this permit shall be final and binding.
If you need additional information concerning this
715-6162.
matter, please contact David Goodrich at (919)
Sincere ,
-Alan W. Klimek, P.E.
cc: Rowan County Health Department
Mooresville Regional Office, Aquifer Protection Section
Aquifer Protection Section, Central Office
Technical Assistance and Certification Unit
Permit Files
2

NORTH CAROLINA
ENVIRONMENTAL MANAGEMENT COMMISSION
DEPARTMENT OF ENVIRONMENT AND NATURAL RESOURCES
RALEIGH
SURFACE DISPOSAL OF RESIDUALS SOLIDS (503 exempt) 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
Alchem, Inc.
Rowan County
FOR THE
operation of a bauxite residuals monofill surface disposal program on Alchem, Inc.'s property at 8135 Red
Road, Rockwell, North Carolina using approximately 3,000 dry tons per year of residuals from the sources
listed in Condition 112, with no discharge of wastes to the surface waters, pursuant to the application received
on September 30, 2004, and in conformity with the project plan, specifications, and other supporting data
subsequently filed and approved by the Department of Environment and Natural Resources and considered a
part of this permit.
This permit shall be effective from the date of issuance until November 30, 2011, shall void Permit
Qti0b&'-318 issued March 1, 1999, and shall be subject to the following specified conditions and
limitations:
I. PERFORMANCE STANDARDS
1. Within ninety (90) days of permit issuance, the berm structure containing the stormwater runoff
from the bauxite fill area shall be replaced, or properly repaired in such a fashion as to address the
concerns noted on page 19 of the report entitled "Report of Preliminary Geotechnical Exploration
& Earthen Embanlanent Analysis" issued by Boyle Consulting Engineers, PLLC on October 24,
2005. The replacement or repairs shall establish structural and hydraulic integrity within the berm
structure. This integrity shall be verified by field examination and testing performed by, or under.
the direction of, a licensed engineer. An engineering report attesting to the structural and hydraulic
integrity of the berm structure, that is signed and sealed by an engineer licensed in the State of
North Carolina, shall be submitted -to the Division at the conclusion of the verification procedure.
Two copies of this report shall be submitted to the Aquifer Protection Section's Mooresville
Regional Office at 610 East Center Street, Suite 301, Mooresville, North Carolina 28115%
2. The addition of bauxite material to the fill area.is prohibited until such time as the berm structure
_ has been replaced or properly repaired and its structural and hydraulic integrity have been verified
by field examination and testing performed by, or under the direction of, a licensed engineer, and
the engineering report is received by the Division.
1

3. The residuals program shall be effectively maintained and operated as a non -discharge system to
prevent the discharge of any wastes resulting from the operation of this program.
4. This permit shall become voidable in the event of failure of the residuals program to adequately
protect the assigned water quality standards of the surface waters and groundwaters.
5. The issuance of this permit shall not relieve the Permittee of the responsibility for damages to
surface or groundwaters resulting from the operation of this program.
6. In the event that the bauxite surface disposal program is not operated satisfactorily, including the .
creation of nuisance conditions, the Permittee shall cease the reuse operation and take any
immediate corrective actions as may be required by the Division of Water Quality (Division).
II: OPERATION-AND-MAINT-t-NANCE 1tEQTJI)t2EM'E
1. The facilities and application sites shall be properly maintained and operated at all times.
�2-__. _ -N. o°res duals -other than the following are hereby approved for use in accordance with this permit:
Permit Volume
Source County Number (dry tons/year)
Alchem, Inc. Leached Bauxite Rowan WQ0002712
3,000
3. Only residuals that are non -hazardous under the Resource Conservation and Recovery Act
(RCRA) shall be disposed in the surface. disposal unit.
4. The pollutant concentrations in the residuals that will be disposed of in the surface disposal unit
shall not exceed the following Ceiling Concentrations (i.e., dry weight basis):
Parameter Ceiling Concentration
(milligrams per kilogram)
Arsenic
30
Chromium
200
Nickel
210
5. The following buffer zones shall be maintained:
a. 400 feet between an active surface disposal unit and any habitable residence;
b. 100 feet between an active surface disposal unit and any public or private water supply source,
all streams classified as WS or B, waters classified as SA or SB and any Class I or Class H
impounded reservoir used as a source of drinking water;
c. 100 feet between an active surface disposal unit and any stream, lake, river, or natural
drainage way;
d. 50 feet between an active surface disposal unit and property lines (if the original permit was
issued with the buffer distance to property line as 100 feet, updated maps must be submitted
and new acreage delineated for the buffer to be reduced);
e. 10 feet between an active surface disposal unit and any interceptor drains or surface water
diversions (upslope);
Mti
M
2

f. 25 feet between an active surface disposal unit and any interceptor drains or surface water
diversions (downslope); and
g. 25 feet between an active surface disposal unit and any groundwater lowering and surface
drainage ditches.
Upon classification by the Water Pollution Control System Operators Certification Commission
(WPCSOCC), the Permittee shall designate and employ a certified operator to be in responsible
charge (ORC) and one or more certified operator(s) to be back-up ORC(s) of the surface disposal
unit in accordance with 15A NCAC 8G .0201. The ORC shall visit the unit in accordance with
15A NCAC 8G .0204 or as specified in this permit and shall comply with all other conditions
specified in these rules.
7. A copy of this permit shall be maintained on site when residuals are being conveyed and/or
disposed of in the surface disposal unit during the life of this permit. A spill prevention and
control plan shall be maintained on site at all times.
rosion
ff from
8. Adequate provisions from
the e taken to prevent wind residuals treatment area ono the adjacent property or into any
conveying pollutants
surface waters.
9. _ 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.
10. No residuals shall be used as pipe bedding for sanitary sewer, storm sewer, or potable water lines.
11. The permittee shall insure that the transportation of the residuals. does not cause any adverse
impact, i.e. transport in a leak -proof truck for wet material, ensure that trucks are covered for dry
material, or otherwise protected to prevent any adverse impact resulting from operation.
12. Adequate provisions shall be taken to prevent any surface runoff from occurring at any active or
dormant residuals uni•�off from off a 'cannot
Sear form event. a collection system
Ail collected shall
derunoffinstalled
shall be
the capacity to handle
disposed in a manner approved by the Division.
13. Adequate provisions shall be taken to prevent wind erosion from conveying pollutants or residuals
from the surface disposal site onto the adjacent property or into any surface waters.
14. Food crops, feed crops and fiber crops shall not be grown on an active residuals unit, unless
approval has been requested and received from the Division.
15. 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
sting of signs indicating the activities being conducted at
controls may include fencing. and the po.
the unit.
III. MONITORING AND REPORTING REQUIREMENTS
1. Any monitoring (including groundwater, surface water; residuals,- soil, or plant tissue analyses)
deemed necessary by the Division to insure protection of the environment will be established and
an acceptable sampling and reporting schedule shall be followed.

p�,�!" Proper records shall be maintained by the Permittee tracking all application activities. These
records shall include, but are not necessarily limited. to the following, information:
a. location of residuals utilization
b. volume of residuals disposed in gallons/year, dry tons/year, or kilograms/year
A residuals analysis shall be conducted twice per year from the date of permit issuance by the
Permittee and the results maintained on file by the Permittee for a minimum of five years. The
residuals analysis shall include the following parameters:
Arsenic Nickel Magnesium
Cadmium Selenium Sodium
Chromium Zinc Manganese
Copper Barium pH
Lead Silver Phosphorous
Mercury Calcium Aluminum
After the residuals have been monitored for two years at the above frequency, the Permittee may
submit a request to the Division for a permit modification to reduce the frequency of monitoring
for pollutant concentrations. In no case, however, shall the frequency of monitoring be less than
once per year when residuals are applied to the land.
4. Residuals generated by the approved residuals source -generating facility listed in Condition I.6.
shall be analyzed to demonstrate that they are non -hazardous under RCRA every five dears, A
corrosivity, ignitability, and reactivity analysis, as well as a Toxicity Characteristics Leaching
Procedure (TCLP) analysis shall be conducted on residuals generated by each approved residuals
source -generating facility. If residuals generated by a particular residuals source -generating
facility are disposed of in the surface disposal unit at a frequency less than annually, the analyses
shall be required for each calendar year in which a disposal event occurs. The results of all
analytical determinations shall be maintained on file by the Permittee for a minimum of five years.
The TCLP analysis shall include the following parameters (i.e., note the regulatory level in
milligrams per liter 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) Tetrachloroethylene (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)
Silvex5-TP , 4 ,
' o-Cresol (200.0) Lindane (0.4) 2( ) (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)
5. Laboratory analysis as required by Condition III.1, Condition III.2, and Condition III.3 shall be
performed/gathered on the residuals ' as they are to be disposed of in the surface disposal unit.
Furthermore, analytical determinations made pursuant to the monitoring and reporting
requirements of this permit shall be made by a laboratory certified by the Division for the required
parameter(s) under 15A NCAC 2H .0800 or 15A NCAC 2H .1100.

6. Proper records shall be maintained by the Permittee tracking all application activities associated
with the surface disposal unit. All records shall be kept by the Permittee for a minimum of period
of five years from the date of disposal. These records shall include, but are not necessarily limited
to, the following information:
a. Date and freeboard level measurements in the surface disposal unit;
b. Source and date or residuals disposed of in the surface disposal unit; tons per
c. Volume of residuals disposed of in the surface disposal unit in gallons per year, dry
year, 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. Remaining volume 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).
Three copies of all required information, monitoring and reporting requirements as specified in
Conditions III 2, III 3, III 4 and HI.6 shall be submitted annually on or before March 1 of the
following year to the following address:
NCDENR-DWQ
Information Processing Unit
1617 Mail Service Center
Raleigh, North Carolina 27699-1617
° Noncompliance Notification:
The Petntittee shall report by telephone to the Mooresville Regional Office, telephone number
[phone], 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 which results in the disposal of significant
amounts of wastes which are abnormal in quantity or characteristic.
b. Any failure of the surface disposal program resulting in a release of material to receiving
waters.
c. Any time that self -monitoring information indicates that the facility has gone out of
compliance with the conditions and limitations of this permit or the parameters on which the
system was designed.
d. Any process unit failure, due to known or unknown reasons, that renders the facility incapable
of adequate residual treatment.
e. Any spillage or discharge from a vehicle or piping system transporting residuals to the
disposal site.
Persons reporting such occurrences by telephone shall also file a written report in letter form
Within five (5) days following first knowledge of the occurrence. This report must outline the
actions taken or proposed to be taken to ensure that the problem does not recur.

V. GROUNDWATER REQUIREMENTS
1. The COMPLIANCE BOUNDARY for the surface disposal unit is specified by regulations in 15A
NCAC ?L, Groundwater Classifications and Standards. The Compliance Boundary for the
disposal system individually permitted on or after December 31, 1983 is established at either (1)
250 feet from the waste disposal area, or 50 feet within the property boundary, whichever is closer
to the waste disposal area. An exceedance of Groundwater Quality Standards at or beyond the
Compliance Boundary is subject to remediation action accordingto 15A NCAC 2L .0106(d)(2).
2 The REVIEW BOUNDARY is established around the surface disposal unit midway between the
Compliance Boundary and the perimeter of the surface disposal unit. Any exceedance of
Groundwater Quality Standards at the Review Boundary shall require action in accordance with
15ANCAC 2L .0106 (d)(1).
3. Any groundwater quality monitoring, as deemed necessary by the Division, shall be provided.
V. INSPECTIONS
1. The Permittee or his designee shall inspect the residuals storage, transport, and disposal facilities
to prevent malfunctions and deterioration, operator errors and discharges which may cause or lead
to the release of wastes to the environment, a threat to human health, or a nuisance. The Permittee
shall maintain an inspection log or summary including at least the date and timeof inspection,
observations made, and any maintenance, repairs, or corrective actions taken by the Permittee.
This log of inspections shall be maintained by the Permittee for a period of five years from the
date of the inspection and shall be made available to the Division or other permitting authority,
upon request.
2.. Any duly authorized officer, employee, or representative of the Division may, upon presentation
of credentials, enter and inspect any property, premises or place on or related to the surface
disposal site or facility at any reasonable time for the purpose of determining compliance with this
permit; may inspect or copy any records that must be kept under the terms and conditions of this
permit; and may obtain samples of groundwater, surface water, or leachate.
VI. .GENERAL CONDITIONS
1. A set of all plans and specifications approved by the Division, as well as any as -built plans for the
residuals conveyance facilities and surface disposal unit shall be retained by the Permittee for the
life of the facilities/unit.
2. This permit shall. become voidable unless the surface disposal activities are and carrthe maied nner
t in
accordance with the conditions. of this permit, the supporting materials,
approved by this Division.
3. This permit is effective only with respect to the nature and volume of wastes described in the
application and other supporting data.
4. This permit is not automatically transferable. tIn the event-tnat tnere is-a-,u�� ._�1•� =u�
h g ov ship or a name change of the Permittee;.a formal permit request must be_su_bmitted
Yto the -Division accom arced b, an a Ti`ca on fee, documentation from the parties involved, and
_ P _Y -pp -
other supporting materials as may be appropriate. The approval of this request will be considered
on its merits and may or may not be approved.
5. Failure to abide by the conditions and limitations contained in this permit may subject the
Pernittee to an enforcement action by the Division in accordance with North Carolina General
Statute 143-215.6A to 143-215.6C.
I

The annual administering and compliance fee must be paid by the Permittee within thirty (30)
days after being billed by the Division. - Failure to pay the fee accordingly may cause the Division
to initiate action to revoke this permit as specified by 15 NCAC 2H .0205 (c)(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 government agencies
(local, state, and federal) which have jurisdiction, including but not limited to applicable river
buffer rules in 15A NCAC 2B.0200, erosion and sedimentation control requirements in 15A
NCAC Chapter 4 and under the Division's General Permit NCG010000, and any requirements
pertaining to wetlands under 15A NCAC 2B .0200 and 2H .0500.
The Permittee, at least six (6) months prior to the expiration of this permit, shall request its
extension. Upon receipt of the request, the Commission will review the adequacy of the facilities
described therein, and if warranted, will extend the permit for such period of time and under such
conditions and limitations as it may deem appropriate.
9. This permit may be modified, or revoked and/or reissued to incorporate any conditions, limitations
and monitoring requirements the Division deems necessary in order to adequately protect the
environment and public health adequately.
10. The Division shall be notified in writing at least 180 days prior to closing of the surface disposal
unit. A formal closure plan and a post -closure management care program for the surface disposal
unit shall be submitted at that time. This information shall be specific to the surface disposal unit
as well as relate to the Permittee's future plans for the land. A schedule for implementing both the
closure plan and the post -closure management care program shall be provided as well.
Permit issued this the 28' day of December 2006
NORTH C OLINA E IRONMENTAL MANAGEMENT COMMISSION
G
an W. Klimek, P.E., Director
Division of Water Quality
By Authority of the Environmental Management Commission
Permit Number WQ0016338
7

FILED
STATE OF NORTH CAROLINNA
COUNTY OF ROBESON 7n-91 NOV 21 P 4: $
OFFICE OF
ALCHEM, INC., h ' .1! �� I S TR All VE
Petitioner, )
V. )
NORTH CAROLINA DEPARTMENT OF )
ENVIRONMENT AND NATURAL
RESOURCES, DIVISION OF WATER )
QUALITY, )
Respondent. )
EXHIBIT
N
. d
D
D
Ill THE OFFICE OF `
ADMINISTRATIVE HEARINGS
07 EHR 0439
07 EHR 0177
SETTLEMENT AGREEMENT AND
WITHDRAWAL OF PETITION
The North Camlina'Acpartmcnt of Environment and Natural Resources (hereinafter
'Respondent) and Petitioner, Alchem, Inc., (hereinafter'Pctitionet), hereby enter into this
Settlement Agreement (here-utaiter"Agreement) in order to amicably resolve matters in
controversy as they relate to a civil penalty assessment and permit requirements. This matter
arose out of theassessment of civil penalties and costs totaling ten thousand six hundred
seventy-seven dollars and sixty-one cents ($I0, 677.61) which includes six hundred seventy-
seven dollars and sixty-one cents ($677.61) in enforcement costs, imposed upon Petitioner on
February 20, 2007 for alleged violations ofNorth Carolina General Statutes § 143-215.1 er seq
and Non -Discharge Permit WQ00.16338. This settlement Agreement also addresses and covers
Challenges to Alchem permit WQ0002702.
Without any hearing of fact or law in the above -styled matters, Respondent and -the
Petitioner have reached the following settlement agreement in this matter:
-I-
N

I
1. Petitioner will adhere to the following conditions:
a Within 30 days of the execution of this Agreement. Petitioner will
immediately create two (2) feet of freeboard space in all storage lagoons.
Additional bauxite residuals must be disposed of in a manner consistent
with Water Quality General Statutes. and the relevant rules promulgated
thereunder or applicable Solid Waste Statutes and the relevant rules
promulgated thereunder '(it is anticipated' that the bauxite in' the first
lagoon will be disposed of off site and the residuals from other lagoons
can be disposed of on site after cleaning and in accordance with the terms
of this agreement);.
b. Petitioner will refrain from placing. any bauxite residuals for fill in the
berm area until construction and repairs to the berm and stormwater
retention pond below that area are complete; .
c. Petitioner will complete construction and repairs to berm and stormwater
• retention pond on or before October 30, 2007, with*site work monitored by
a licensed professional engineer to ensure proper construction and with
notification to Mooresville Regional Office of DWQ upon completion;
d. Petitioner shall inspect and repair all three storage lagoons on site by June
1, 2008, with site work monitored, tested and certified by a licensed
professional engineer to ensure proper construction. In order to meet this
requirement, the Petitioner will be allowed to setup a temporary rnixer on
site for the purpose of combining the residuals with a chemical agent that
-2-

will bring them into compliance with appropriate pH levels, which will be
removed once the storage lagoons have been repaired and the Respondent
has determined that the residuals arc leaving the wash system and reaching
the storage lagoons and berm areas at the appropriate pH levels; .
eO On or before March 1, 2008, the Petitioner will submit to the Mooresville
Regional Office of DWQ a site assessment prepared by a licensed
professional engineer. The site assessment should include a site map, a
land survey that delineates current fill and set backs from residential and
commercial properties, operational plan including projected estimate of
site life;
f. On or -before -June 1, 2008, the Petitioner will install satzipling ports in the
pipes between the wash system and the storage lagoons. Additionally,
Petitioner will provide sampling data to the Mooresville Regional Office
of DWQ that the bauxite residuals being transferred from the wash system
to the mixer and/or storage lagoons and eventually to the berm fill area,
have achieved the prescribed pH level; and
g. Petitioner may seek a permit modification to address condition II(S)(a)
(400-foot buffer zone) after a concurrent site inspection with DWQ staff
and a licensed professional engineer retained by Petitioner.
2. petitioner shall pay Respondent nine thousand dollars ($9,000.00), (hereinafter
`Sctticment Amount), which includes eight thousand throe hundred twenty-two dollars and thirty-
nine cents ($8,322.39) for the civil penalty and six hundred seventy-seven dollars and sixty-one
-3-

cents ($677.61) for investigative costs. The Settlement Amount shall be made in nine (9) equal
payments of one thousand dollars ($1,000.00) due on the 1st day of every month. The first
payment will be due within thirty (30) days of the execution of this Agreement.
3. The payments shall be by check made payable to the'North Carolina Department
of Environment and Natural Resourced"or to'DBWat the following address:
Stormie A. Forte, Esq.
Attorney General's Office
Environmental Division
9001 Mail Service Center
Raleigh, NC 27699-9001
4. The breach of any condition of Paragraphs one (1), or two (2) by Petitioner will.
render due and payable the entire amount of the civil penalty assessment, including investigative
` costs i.e., ten thousand six hundred seventy-seven dollars and sixty-one cents (%10, 677.61). Any
payments made by Petitioner prior to Any breach, will be subtracted from the original amount of
the civil penalty assessment for purposes of collection.
S. :petitioner and Respondent expressly stipulate and acknowledge that, by entering
into this Agreement, Petitioner neither admits nor denies the allegations contained in the
Inspection Reports, Notices of Violation, Notices of Additional and/or Continuing Violations,
Findings and Decisions or Assessment of Civil Penalties. However, upon a breach of paragraph
one (1) or two (2) of this Agreement, by Petitioner, the sole issue in any action by Respondent is
to collect the Entire amount of the civil penalty assessment including investigative costs i.e., ten
thousand six hundred seventy-seven dollars and sixty-one cents ($10, 677.613 in accordance with
the terms of paragraph four (4) above and will be limited to the Petitionefs compliance with the
terms of this Agreement: Additionally, for the purposes of future violations of the Water Quality
-4-

Statutes and the rules promulgated thereunder, the violations that arc the subject of the Notice of
Violation and Civil Penalty Assessment for this matter will be used to document the Petitioner's
prior record,
6. . Respondent agrees to accept a payment in the amount of nine thousand dollars
(S9,000.00), -in complete satisfaction of the civil penalty assessment dated February 20, 2007,
subject to the terms of this Agreement..
Nothing in this Agreement shall restrict any right of Respondent to inspect or take
any enforcement action against Petitioner for any new, subsequent, or future violations ofthe
Water Quality Statutes and the relevant rules promulgated thereunder, occurring outside of the
February 20, 2007 civil penalty assessment. Similarly, nothing in this Agreement shall restrict
the right of Petitioner to contest a new or subsequent enforcement action arising outside of the -
February 20, 2007 civil penalty assessment
8. Respondent and Petitioner agree that, for purposes of any future bankruptcy
proceeding, this Agreement is not intended as, nor shall it be deemed to constitute; a novation of
any claims asserted by Respondent against petitioner. Nothing ih this Agreement releases any
nondischargeability claims that may be asserted by Respondent in any bankruptcy proceeding,
and nothing in this Agreement shalt be deemed a waiver of Respondenfs right to rely on the
nature of any claim or debt released in this Agreement to show that the claim or debt is
nondischargeable.
9. This Agreement shall be binding upon the parties and is entered into knowingly,
intelligently, and voluntarily.
10. Signatures hereto via email are as binding as original signatures.
-5-

WITHDRAWAL OF PETITION
11. Entry of this Agreement serves as Petitionefs Withdrawal of its Petition for
Contested Case Hearing Without Prejudice in these matters. The parties agree this matter is
concluded and that no further proceedings are needed or required to resolve the contested case.
FOR THE DMSION OF WATER
QU ITY:
Andrew Pitner, Mooresville
Regional Supervisor, DWQ
Date: y • O—)-•
APPROVED AS TO FORM:
ROY COOPER
Attomey,peneral
B
r•
Stormie D. Forte
Assistant Attorney General
N. C. Department -df Justice
Environmental Division
9001 Mail Service Center '
Raleigh NC 27699-9001
Sil
ALCHEM, INC.:
Randall F. Andrews
Alchem,1=.
Date: I I — 1 ~9 ® /
THE YARBOROUGH LAW FIRM
Attorneys at Latin
UJjLUk,-'
H. Addison Winters
Attorney at Law
-P. O Drawer 705
Fayetteville NC 28302

Alchem, Inc. — Red Road Facility, Rockwell, Rowan Co.
WQ0002702 / WQ0016338 Industrial Recycle -Bauxite Process/Bauxite Residuals Monofill
On January 24, 2008, a caller informed MRO-APS staff that bauxite residuals from Alchem
were being dumped at a site in Denton, NC (Davidson Co.) The site was visited on January
25. Approximately 27 large piles of bauxite residuals were found in a field behind a group of
homes off Tom's Creek Church Rd. According Davidson County GIS, the property is owned
by Henry Peele and Waymon Skeen of Southmont, NC.
Above photo shows 4 dump piles in foreground; rest of dumping near tree line shown in the
photo below.
C' r

MAGGIE LANE DUMP SITE
off Tom's Creek Church Rd.
Denton, NC
Left: height of smaller group of piles in
relation to state vehicle;
Right: looking down Maggie Lane towards
dump field (white spot near center of photo
is the smaller group of piles)

Toms Creek Church Rd, Denton, NC 27239, USA - Google Maps
Page 1 of 1
-' Address
J— ill�-- 8;, Toms Creek Church Rd
Nlaps Denton, NC 27239
a
02008 Google -
Get Google Maps on your phone
RText the word "GMAPS" to 466453
data ©2008 NAVTEQM -
I„ ii- --'---.--i..__.-_n---m_.--_.i/1..__7_i!-tt__-_1_inJ lT1-__`___ .XTr,nnn'In ,TTC/A0- 1/nAi1%nn0

The following is from the Davidson Co GIS (http://arcims.webgis.net/nc/davidson/defauIt.asp)
1-25-08 with dump locations highlighted:
Davidson Co., NC
Parcel Number: 0703900000020
Pin Id: 6679-03-30-9354
Owner:
PEELE HENRY A & WAYMON L SKEEN
P O BOX 377
SOUTHMONT NC 27351-0000
Property Address:
0 TOMS CREEK CHURCH RD
Additional Information
L20 BK1033-1350
TOMS CRK CH R
City Limits:
None '
Parcels
Land Units: 24 AC
Deed Book: 1033 Pg:
1350
Deed Date: 5/22/1997
Account Number: 000009031988
Township: Emmons
Exempt Code:
Building Value:
$0
Other Building Value:
$0
Land Value:
$124,080
Market Value:
$124,080
Assessed Value:
$124,080
Deferred Value:
$0
Other Attributes
at point 1673972, 689957
Townships:
Name: EMMONS
Soils:
DSL Name: GeB
Fire Districts, Sq.Miles: 52.38 Soil Name: GEORGEVILLE
Name: SOUTH EMMONS Zoning Districts: Type: SILT -LOAM
Sq.Miles: 18.6 Zone: RS Percent SL: 2-8
Hydric:

CERTIFIEQ MAIL
RETURN RECEIPT REQUESTED
Alchem, Inc.
2042 Buie Phildelphus Road
Red Springs, North Carolina 28377
Attention: Julia M. Andrews, Registered Agent
Dear Ms. Andrews:
Michael F. Easley, Governor
William G. Ross Jr., Secretary
North Carolina Department of Environment and Natural Resources
Coleen H. Sullins, Director
Division of Water Quality
AQUIFER PROTECTION SECTION
March 27, 2008
EXHIBIT
b
D
RE: Notice of Violation/Notice of Recommendation for
Enforcement— NOV-2008-PC-0134
Alchem, Inc. — Red Road Facility
Non -discharge Permit No. WQ0002702 and
Non -discharge Permit No. WQ0016338
Industrial Recycle Bauxite Process, Bauxite Monofill
Rockwell, 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.
In response to a citizen complaint, staff from the Aquifer Protection Section of the Mooresville Regional
Office conducted a site visit at a property located at Maggie Lane off Tom's Creels Church Road, in Denton,
Davidson County. Approximately 27 loads of residuals from Alchem were found to have been dumped at this
location (see attachment for photos). As a result of the investigation, the Division has reason to believe that
you are in violation of the following permit conditions:
• Permit W00016338 condition 1.3 - the facilities should be effectively maintained and operated as a
non -discharge system to prevent the discharge of any wastes resulting from the operation of this
program.
• Permit W00002702 Condition 6 — The residuals generated from these treatment facilities must be
disposed of in accordance with General Statute 143-215.1 and in a. manner approved by the Division.
• The aforementioned location is not an appropriately permitted facility for disposal and the Division did
not approve the manner of disposal or the location.
In order to correct this violation, you shall Immediately cease disposal of the residuals at locations
that are not permitted for disposal or approved for application by the Division. You must also remove these
residuals from their present location in Davidson County and transport them back to the Alchem facility for
treatment or to a Subtitle D landfill for disposal. The Division has also been made aware that residuals that
were sent to Agric Chemicals, Inc., and have not been properly handled. As such, previous approval granted
to Alchem to send the residuals to Agric Chemicals, Inc. is now revoked and any future plans for using the
residuals in such processes must be submitted and approved in writing by the Division prior to off Site -
it
Division of WaterQuality /Aquifer Protection Section / Mooresville Regional office Phone: p04) 663-1ti99 Fax p04) 6636pg0 WE—
/
610 East Center Avenue, Suite 301, Mooresville, NC 28115 Internet: wwwmwaterouality ora v Ys6hwi i�

Alchern, Inc. NOV
Page. 2 of 2
March 26, 2008
transport. Pending further investigation, the Division reserves the right to issue additional notices of violation
and recommendations for enforcement. As the permit holder and generator of these residuals, it Is
Alchem's responsibility to ensure that they are handled properly and disposed of within the conditions
of your permit and applicable laws. The material shall not be given away to be used as fill.
You are required to respond to this notice by submitting a plan for removal and proper disposal of the
residuals dumped in Davidson County to the Aquifer Protection Section of the Mooresville Regional Office
within 10 days following receipt of this notice. The plan shall identify the amount of material that will be sent to
a Subtitle D landfill (and the name and location of that facility) or returned to the Alchem facility for treatment.
Upon proper disposal of the residuals, you shall submit a summary report and include manifests or other
suitable documentation.
In addition, by June 26, 2008, you are required to submit a report assessing any damage to the soil
and/or groundwater at the unapproved disposal site in Davidson County. The report shall be prepared by a
North Carolina Licensed Geologist or Professional Engineer.
The above violation of G.S. 143-215.1 is subject to a civil penalty assessment under the authority of
G.S. 143-215.6A of up to $25,000 per day per violation. A recommendation for enforcement is currently being
prepared by the Mooresville Regional Office. Please note that each day the unapproved disposal
continues, you may be subject to a continuing penalty assessment.
Please address your response to me. It is also requested that your response letter reference the date
and subject of this NOVINRE as well as the permit number. Should you have any questions concerning this
matter, please do not hesitate to call me at 704/669-1699, ext. 2180.
Sin erely,
Andrew H. Pitner, P.G.
Environmental Regional Supervisor
Attachment
Cc: Kim Colson & Ed Hardee, APS Land Application Unit
File PC-2008- 0134
APS Central Files
Bob Wolcott, Operations Mgr., Alchem, Inc. 8135 Red Rd., 28138
Andrew Hammonds, DWM-Solid Waste Section, Fayetteville Regional Office
Art Barnhardt; DWQ-Aquifer Protection Section, Fayetteville Regional Office
Sherri Knight, DWQ-Aquifer Protection Section, Winston-Salem Regional Office
Henry Peele and Waymon L. Skeen, P.O. Box 377 Southmont, NC 27351-0000

ALCHEM, INC
8135 RED ROAD
ROCKWELL, NC 28138
704-279-7908 fax [phone]
dwolcott2@wi ndstream. net
April 8, 2008
RE: NOV-2008-10C-0134
Dear Mr. Andrew Pitner,
EXHIBIT
J
This letter is in response to your NOV dated March 27, 2008, concerning 20+ loads of Bauxite Sand
delivered to Tom's Creek Church Rd in Thomasville, NC. Below you will find the process that will be
used to remove above mentioned sand.
PLANNED REMOVAL
Alchem will contract Black's Excavating in Salisbury, NC for 5 Quad Axle Dump Trucks; we will rent a
953 CAT Track Loader from Mays Equipment in Lexington, NC for the purpose of loading the sand into
the Dump Trucks.
NEW LOCATION of SAND
All loads of Bauxite Sand will be brought back to Alchem for processing.
THOMASVILLE, NC LOCATION
After removal of the Bauxite Sand from the property, Alchem will remove 4-5 inches of soil where the
sand was sitting; we will then replace the soil with a topsoil, lime and reseed the area.
Alchem will have a TCLP done on the soil removed and water samples from any creek or waterway
around the above mentioned property, when the results are in we will forward all results to DENR
Mooresville Office.
FINAL NOTE
Andrew, as I told you during our phone conversation last week, these loads of sand were sent to
Thomasville back in November of 2007 when Alchem, Inc was still under the Management of Wayne
Drye, VP. In our conversation I also informed you that Mr. Drye still to this date retains 21 % of Alchem,
Inc and is still looked upon as an Officer of this company. He is also responsible by law for 21 % of the

cleanup cost of Alchem, Inc. I also have every reason to believe that this current situation (sand) was
set up by Mr. Drye knowing he was going to loose his active roll at Alchem, Inc once I came into the
picture. Mr. Drye swore vengeance so I am sure this will not be the last retaliatory act/call you will
receive from him or someone affiliated with him. He phoned the office again on April-2, 2008 at 3:57pm
and asked Denise to relay a message to me, in that message he called me names and said that "THE
BEST IS YET TO COME". What Mr. Drye doesn't understand is that he is incriminating himself from a
legal standpoint. As I am aware that this is not your concern or issue to deal with, however I feel it is
sad that State Agencies are being used by Mr. Drye and his affiliates for his own personal grievances.
Knowing this is not your issue, I do however want you to be aware of the situation.
Thank you for your time, attention and understanding.
Best Regards,
ROBERT A. WOLCOTT
CHIEF OPERATIONS OFFICER
ALCHEM, INC
8135 RED RD
ROCKWELL, NC 28138
cc: Randall Andrews
OFFICE — 704-279-7908
FAX — 704-279-8418
PERSONAL CELL — 704-245-9689
(AFTER 6pm)

ALCHEM, INC
8135 RED ROAD
ROCKWELL, NC 28138
704-279-7908 fax [phone]
[e-mail] - .
April 8, 2008
RE: BAUXITE SAND PROCESS BEING DONE OFF SITE
Dear Mr. Andrew Pitner,
Following you will find for your offices review the process and intended use of the Bauxite Residual Sand that
is to be removed from Alchem, Inc.
Thank you. for your time, attention and understanding.
Best Regards,
ROBERT A. WOLCOTT
CHIEF OPERATIONS OFFICER
ALCHEM, INC
8135 RED RD
ROCKWELL, NC 28138
cc: Randall Andrews
OFFICE — 704-279-7908
FAX — 704-279-8418
PERSONAL CELL — 704-245-9689
(AFTER 6pm)

FROM FAX NO. Apr. 08 2008 05:41AM P3
IAC
INDUSTRIAL, AND AAGRICULTUP.-AL CHEMICALS, INC.
2042 RVIE PHILADELPHUS ROAD RED SPRINGS, NC 28377
910-843-2121 — FAX [phone] — EMAIL rfa&c mr.net
April 7, 2008
Mr. Bob Wolcott
ALCILM, Inc.
8135 Red Road
Rockwell, NC 28318
Dear Mr. Wolcott:
IAC produces a mineral product that needs a filler. After blending we spray water and
Sulfuric acid on the product to turn the Zinc Oxide, Copper Oxide, Iron Oxide, and
Aluminum Oxide into the more soluble sulfate form. Therefore, any Sulfuric acid or
Aluminum already in the sand product is beneficial. All components of the sand product
that you generate are beneficial to our granular mineral products. The sand is stored
under cover. We have s storm water discharge permit. IAC has not had any solid waste
violations in the last 15 years.
Best regards,
Industrial & Agricultural Chemicals, Inc.
94W AJA'Vx�--
Randall F. Andrews,
President
ams
Page 1 of l

FROM FAX NO.
DASDs Material Safety Data Sheet �]
Office: 800-462-2586
24 Hour Emergency Assisi'ance
Chemfirec: 800-420300
1. Product Identification
_..,...,,.............. _.........
Product Name: Mineral Diluent Product
Common Name: Silica
Apr. 08 2008 05:40AM P1
ALCHEM, INC.
8135 Red Rd.
Rockwell, NC 28138
Date Prepare: 11-16-05
This Revision: 12-08-06
Manufacturer's Name: ALCHEM, INC. I
Manufacturer's Address: 8135 Red Rd.
Rockwell, NC 28135
Manufacturer's Number: [phone] Manufacturer's Fax: [phone]
2. Composition/Information on Ingredients
Ingredient Name
CAS Number
Concentration
Wt
Silica
14808-60-7
90
Aluminum Oxide
1344-28-1
8-10
Sulfuric Acid
7664-93-9
3-5
OSHA PI°L
ACGIHTLV
NIOSH REL
NIOSH
Ingredient
TWA
STEL
TWA
$TEL
TWA
STEL
IDLH
Silica
%
Si02 +
2
0.05
mg/6ubic
1 meter
_
0.05mg/Cubic
meter
Aluminum Oxide
NIA
NIA
Sulfuric Acid
N/A
N/A
Exposure Limits refer to the respirable fraction.
PEL means OSHA Permissible Exposure Limit.
TLV means American Conference of Governmental industrial Hygienists (ACGIH) Threshold Limit
Value.
MSHA means Mine Safety and Health Administration Exposure Limit.
TWA means 8 hour Time Weighted Average.
CAUTION: Silica is classified as hazardous under Occupational Safety and Health Administration
(OSHA) regulations (29 CFR 1010.1200). The Permissible Exposure Limits (PEL) reported above
are the pre-1989 limits that were reinstated by OSHA June 30, 199$ following a decision by the
11th Circuit Court of Appeals. There PELS are now being enforced by the .Federal OSHA. Be.
aware that more restrictive exposure limits may be enforced by some states, agencies, or other
authorities.
3. Hazards Identification
,,,,,,,,,,
EmergencyOverview
� .. ................. .
...,.. ..-........... .. _ ,.,,.,,,.., ,.......
Mineral Diluant Product is a light buff, tan, and gravel -multicolored with no odor. It is
Page 1 of 10

FRnM FRX NO. Apr. 08 2008 05:40RM P2
DESCRIPTION
USES
CHEMIM
MD
PHYSICAL
PROMM
PACKAGING.
STORAGE
Mineral Diluent Product
This product is used as a diluent in manufacturing fertilizer
mineral products.
Use between 200 and 500 pounds per ton as formula requires.
T.YUCAL aFECIII
JC&TIOLI
Silica >90% 88-92
Aluminum Oxide <10% 8-9
Sulfuric Acid <5% tt-S
Shipped in super sacks or bulk trailers.
Store under cover and minimize storm water runoff.
ALCHEM, INC.
8135 RED ROAD
ROCKWELL, NC 28138
Phone [phone] w Fax [phone]

a
a
s
EXHIBIT
To File:
Site Visit - April 17, 2008
Maggie Lane — Site of illegal Alchem dumping
Denton, Davidson County
The piles of bauxite residuals have been removed. The area has apparently been
overseeded (pine straw has been laid down as a cover).

ALCHEM, INC
8135 RED ROAD
ROCKWELL, NC 28138
^� 704-279-7908 fax [phone]
/ [e-mail]
April 8, 2008
RE: BAUXITE SAND PROCESS BEING DONE OFF SITE
Dear Mr. Andrew Pitner,
EXHIBIT
6-B
Following you will find for your offices review the process and intended use of the Bauxite Residual Sand that
is to be removed from Alchem, Inc.
Thank you for your time, attention and understanding.
Best Regards,
ROBERT A. WOLCOTT
CHIEF OPERATIONS OFFICER OFFICE — 704-279-7908
ALCHEM, INC FAX — 704-279-8418
8135 RED RD PERSONAL CELL — 704-245-9689
ROCKWELL, NC 28138 (AFTER 6pm)
cc: Randall Andrews

FROM FAX NO. Apr. 08 2008 05:41AM P3
- i I 1AC
INDUSTRIAL AND AGRICULTURAL CHIEMICALS, INC.
-- 204213YJIE PHILADELPRU'S ROAD RED 8PR7NGS, c 28377
910-843-2121 FAX [phone] — EI LUL rfa�semr,net
April 7, 2008
Mr. Bob Wolcott
ALCHEM, Inc.
8135 Red Road
Rockwell, NC 28318
Dear lair. Wolcott:
EXHIBIT
6-C
IAC produces a mineral product that needs a filler. After blending we spray water and
Sulfuric acid on the product to turn the zinc Oxide, Copper Oxide, Iron Oxide, and
--Aluminum--Oxide into the more soluble sulfate form. Therefore, any Sulfuric acid or
Aluminum already in the sand product is beneficial. All components of the sand product
that you generate are beneficial to our granular mineral products. The sand is stored
under cover. We have s storm water discharge permit. IAC has not had any solid waste
violations in the last 15 years.
Best regards,
Industrial & Agricultural Chemicals, Inc.
P�
Randall F. Andrews,
President
arras
Page 1 of 1

. FROM FAX NO.
MSDS Maternal Safety Data Sheet
Office: 800-462-2586
Apr. 08 200B 05:40AM P1
ALCHEM, INC.
8135 Red Rd.
Rockwell, NC 28138
EXHIBIT
I
24 Hour Emergency Assistance Date Prepare: 11-16-05
Chemtrec: 800-424-9300 This Revision: 12-08-06
1. Product Identification
Product Name:' Mineral Diluent Product
Common Name: Silica
Manufacturer's Name: ALCHEM, INC. I
Manufacturer's Address: 8136 Red Ltd.
Rockwell, NC 28135
Manufacturer's Number: [phone] Manufacturer's Fax: [phone]
2. Composition/Information on Ingredients
Ingredient Name
CAS Number
Concentration
WE
Silica
14808-60-7
90
Aluminum Oxide
1344-28-1
8-10
Sulfuric Acid
7684-93-9
3-5
OSHA PEL
ACGIHTLV
NIOSH REL
NIOSH
Ingredient
TWA
I STEL
TWA
$TEL
TWA
STEL
IDLH
Silica
%
Sl02 +
2
0.05.
mg/cubic
1 meter
0.05mg/cubic
meter
Aluminum Oxide
N/A
N/A
Sulfuric Acid
N/A
N/A
Exposure Limits refer to the respirable fraction.
PEL means OSHA Permissible Exposure Limit.
TLV means American Conference of Governmental industrial Hygienists (ACGIH) Threshold Limit
Value.
MSHA means Mine Safety and Health Administration Exposure Limit.
TWA means 8 hour Time Weighted Average,
CAUTION: Silica is classified as hazardous under Occupational Safety and Health Administration
(OSHA) regulations (29 CFR 1910.1200). The Permissible Exposure Limits (PEL) reported above
are the pre-1989 limits that were reinstated by OSHA June 30, 1993 following a decision by the
11m Circuit Court of Appeals. There PELs are now being enforced by the.Federal OSHA. Be.
aware that more restrictive exposure limits may be enforced by some states, agencies; or other
authorities.
3. Hazards Identification
Emergency Overview
Mineral Diluant Product is a light buff, tan, and gravel -multicolored with no odor. It is
Page 1 of 10

FROM v FAX NO. Apr. 08 2008 05:40AM P2
DESCRIPTION
USES
CHEMICAL
AND
PHYSICAL
PROPERTIES
PACKAGING.
STORAGE
MinerW Drluent Product
This product is used as a diluent in manufacturing fertilizer
mineral products.
Use between 200 and 500 pounds per ton as formula requires.
T-YUCAL S_DQ11 CATION
Silica >90°l0 88-92
Aluminum Oxide <10% 8-9
Sulfuric Acid <5% 4-5
Shipped in super sacks or bulk trailers.
Store under cover and minimize storm water runoff.
ALCHEM, INC.
8135 RED ROAD
ROCKWELL, NC 28138
Phone [phone] — Fax [phone]

EXHIBIT
b
49 8
June 30, 2008
MEMORANDUM
TO: Ed Hardee, APS, LAU
FROM: Andrew Pitner, MRO, APS
PREPARED BY: Ellen Huffman, MRO, APS
SUBJECT: Enforcement Case PC- 2008-0b26
Violation of Permit No. W00002702
ALCHEM, Incorporated
Attached is the enforcement package sent to ALCHEM on June 30, 2008, with supporting
documentation concerning violations
bauxite re use program. This office olations resulted from
ALCHEM's mismanagement of Office is issuing a penalty.
The attached material should be self-explanatory; however, if you have any questions, please
contact Mrs. Ellen Huffman or me.
Attachments
ebh

EXHIBIT
a
Page 1
a
3
Summary
On Thursday, January 24, 2008, the Mooresville Regional Office received a complaint of
dumping by ALCHEM on a site just north of Denton, NC. Peggy Finley visited the site on January 25,
2008 and observed multiple piles of ALCHEM spent bauxite sand dumped in a field off of Tom's Creek
Church Road in Denton, NC (Davidson County). At least 27 piles were counted on the site in two
locations of a level grassy field (photos attached).
Chronology of Events/Correspondence
January 24, 2008 — A report of dumping is received by the MRO. Complainant says dumping occurred
in the latter part of December 2007.
January 25, 2008 — Staff from the MRO conducted a site visit at the location given by the complainant.
Observations and pH readings of the material lead to the conclusion that it is ALCHEM's spent bauxite
sand.
CHECKLIST FOR PERMIT VIOLATIONS
1. Copies of the Permits (#W00016338, 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 for samples taken at dump site are attached. Not applicable.
6. The violation is not due to. a power failure or by-pass of any treatment facility.
7. Are violation(s) chronic and/or due to a single operational upset?
The violation is considered to be unlawful and willful.
8. Were any specific notifications submitted concerning noncompliance?
A NOV/NRE was sent on March 25, 2008, which documented the subject permit violations and
indicated that an enforcement recommendation would be prepared.

9. Cost of the investigation:
8 hours by Ellen Huffman for preparation
of enforcement report at $24.62/hour
8 hours by Peggy Finley for preparation
of enforcement report at $24.62/hour
8 hours by Andrew H. Pitner, P.G. for supervisory review
at $28.62/hour
1 hour for clerical processing at $10.93/hour
Mileage 50.8 @ $0.26 per mile
Certified Mail 6 @ $4.64 lea.
= 196.96
= 196.96
228,96
= 10.93
= 132.08
= 27.84
Total $793.73

EXHIBIT
N
d
D
D
DIVISION OF WATER QUALITY
ENFORCEMENT CASE ASSESSMENT FACTORS
Type: Permit Violation
Non -Discharge Permit No. W00002702
Case No. PC-2008-0026
Violator: ALCHEM
Regional Office: Mooresville
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:
Acidic residuals were in an area accessible to the public on private property.
2. The duration and gravity of the violation:
The violations were reported to have taken place in the latter part -of December 2007. Estimates of the volume of
material hauled off site took approximately 4 + working days. There were at least 27 piles found at the site. A site
visit on April 18, 2008, by MRO staff concluded clean up is cornplete'at the Denton site.
3. The effect on water/groundwater quality:
alth, and fish or wildlife, as a result of these violations.
There is no documented effect'on water, public he
4. The cost to rectify the damage:
The cost to rectify damage is difficult to determine. A report from ALCHEM included costs that were not.
associated with the violation. The submitted clean-up plan did not specify, however, as of.April 18, 2008,
ALCHEM has completed site clean up.
5. Amount of money saved by noncompliance:
The amount of money saved -is approximately 1$ 9,440. Savings were calculated by using weight from submitted
ALCHEM weight tickets and calculated by landfill tipping fees. The tipping fee for Rowan County Landfill is
$32.00 per ton. Each of the 27 loads was estimated at 45,000 Ibs (22.5 tons).
6. Whether or not the violations were committed willfully or intentionally:
The violations were will and intentional. ALCHEM knew from permit requirements, previous documentation, and -
settlement agreement, that disposal options only consist of on -site, landfill, or selling as product filler to Southern
States was acceptable.
7. The prior record of the violator in hacomplying cling -to comply with programs over which the
Environmental Management Commission regulatory
The ALCHEM facility hasan extensive record of non-compliance, .including NOV 10/2511990, NOV 01/0712002,
NOV 03/15/2002, NOV/NRE 05112/2003. 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, and currently, under court order.
8. Type of violator and general nature of business:

a
10.
11
The permittee manufactures chemicals for water and wastewater treatment. The primary use of the facility is to
chemically treat bauxite to produce Alum for water and wastewater treatment.
Violator's degree of cooperation (including efforts to prevent) or recalcitrance:
The permittee historically has exhibited either a lack of ability or indifference regarding facility conditions and has
demonstrated poor management of the bauxite fill area and the recycle system. Note that by April 18, 2008, the
dumpsite had been cleaned up as required. Recent management changes at Alchem have resulted in some
improvements at the facility in Rockwell, but the company owner has shown lack of concern.
Mitigating circumstances:
This Office is very concerned with the 22-year history of poor management of ALCHEM's non -discharge facilities.
These violations exhibit a continuation of this history regarding compliance with permit conditions, and poor
management of the bauxite fill area.
See file history included in package.
Cost to the State of the enforcement procedure:
The cost to the State in bringing about this enforcement action is as follows:
8 hours by Ellen Huffman for preparation
of enforcement report at $24.62/hour
= 196.96
8 hours by Peggy Finley for preparation
of enforcement report at $24.62/hour = 196.96
8 hours by Andrew H. Pitner, P.G. for supervisory review _ 228.96
at $28.62/hour
1 hour for clerical processing at $10.93/hour = 10.93
Mileage 50.8 @ $0.26 per mile = 132.08
Certified Mail 6 @ $4.64 lea. = 27.84
Total $793.73

EXHIBIT
N
DIVISION OF WATER QUALITY -- CIVIL PENALTY ASSESSMENT
Violator: ALCHEM, Inc.
County: Rowan
Case Number: PC-2008-0026
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 (X) moderately significant () significant () very significant () extremely significant
2) The duration and gravity of violation;
( ) not significant () moderately significant (X) 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; .
1 Onot significant O moderately significant ( ) significant ( X) 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 signifcant () 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
4'
Andrew H. Pitner, P.G.
Date

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:
rvn�.uaci i �ao�cy, vrcu w, �
William G. Ross Jr., Secretary
North Carolina Department of Environment and Natural Resources.
Coleen H. Sullins, Director
Division of Water Quality
AQUIFER PROTECTION SECTION
June 30,.2008
RECEIVED / DENR I DWQ
Aquifer Protection Section
JUL 2 2008
1
EXHIBIT
SUBJECT: Assessment of Civil Penalty for
Violations of NC General Statute 143-215.1 and
Non -Discharge Permit No. W00016338
Non -Discharge Permit No. WQ0002702
Case No. PC-2008-0026 `
NOV-2008-PC-0134
Rowan County .
This letter transmits notice of a civil penalty assessed against ALCHEM,' Inc. in the amount of $34,543.73,
which includes $793.73 in investigative costs. Attached is a. copy of the assessment document explaining this
penalty.
This action was taken under the authority vested in me by delegation provided by the Secretary of the
Department of Environment 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.
Within thirty days of receipt of this notice, you must do one of the following three. items:
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
Division of Water Quality I Aquifer Protection Section / Mooresville Regional Office
610 East Center Avenue, Suite 301, Mooresville, NC 28115
o o
NhCarolina
Phone: [phone] Fax: [phone] rrturallr�
Internet: http://aw.ehnr.state.nc.us

kLCHEM Inc. Assessment
WQ0002702
OR
Page 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 infonnation and
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.

ALCHEM Inc. Assessment
W00002702
Page 3
OR
3. File a petition for an administrative hearing with the Office of Administrative Hearings:
If you wish to contest any statement in the attached assessment document you must file a
petition for an administrative hearing. You may obtain the petition form from the Office of
Administrative Hearings. You must file the petition with the Office of Administrative Hearings
within thirty (30) days of receipt of this notice. A petition is considered filed when it is received
in the Office of Administrative Hearings during normal office hours. The Office of Administrative
Hearings accepts filings Monday through Friday between the hours of 8:00 a.m. and 5:00 p.m.,
except for official state holidays. The 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:
Ms. Mary Penny Thompson, 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 number (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
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.

ALCHEM Inc. Assessment
W00002702
Page 4
If you have any questions, please contact me or Peggy Finley at [phone] or Mr. Ed Hardee at (919)
715-6189.
Since
Andrew H. Pitner, P.G.
Environmental Program Supervisor I11
Aquifer Protection Section
Mooresville Regional Office
ATTACHMENTS
cc: Ed Hardee, DWQ APS Central Office w/attachments
Case # NOV-PC-2008- 0134 w/ attachments
APS Central Files w/ attachments
DWQ Public Information Office w/attachments
Rick Shiver, DWQ Central Office
Bob Wolcott, Alchem Facility, Rockwell

STATE OF NORTH CAROLINA
COUNTY OF ROWAN
IN THE MATTER OF: )
ALCHEM Incorporated, )
FOR VIOLATIONS OF )
PERMIT NO. WQ0002702 )
AND N.C.G.S. 143-215.1 )
NORTH CAROLINA
ENVIRONMENTAL MANAGEMENT COMMISSION
File No. PC-2008-0026
FINDINGS AND DECISION
AND ASSESSMENT
OF CIVIL PENALTIES
Acting pursuant to delegation provided by the Secretary of the Department of Environment and Natural
Resources and the Director of the Division of Water Quality, 1, Andrew H. Pitner, P.G., 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 (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 at their facility in Rockwell, Rowan County. The registered agent for ALCHEM is Randall
F. Andrews.
B. Non -Discharge Permit No. WQ0002702 (issued December 28, 2004) regulates the washwater recycle -
system at the ALCHEM facility and Non -Discharge Permit No. W00016338 (issued December 28, 2006,
adjudicated and enforceable from terms of a Settlement Agreement filed on November 27, 2007)
regulates the disposal of residuals from the recycle system. Permit W00016338 allows ALCHEM to
dispose of spent bauxite residuals, after the residuals meet certain conditions, on site. Alternately, 15A
NCAC 02T .1103 permits by rule the disposal of residuals in a subtitle D landfill.
C. Permit WQ0002702 condition 6 states, "The residuals generated from these treatment facilities must be
disposed of in accordance with General Statute 143-215.1 and in a manner approved by the Division."
D. ALCHEM and the Division entered into a Settlement Agreement filed on November 27, 2007, to resolve
alleged violations, in addition to the permit adjudication noted above. The Settlement Agreement states,
"additional bauxite residuals must be disposed of in a manner consistent with Water Quality General.
Statutes and .the relevant rules promulgated thereunder or applicable Solid Waste Statutes and the
relevant rules promulgated thereunder." Disposal of wastewater residuals in a solid waste facility is
permitted by rule in accordance with 15A NCAC 02T 11103.
E. ------- ---
n or abouf January 24, 2008, MRO APS staff received a complaint (via phone) of a material being
dumped (by a truck with the name ALCHEM on it) on land near Denton, NC, sometime in late December
2007. The material reportedly had been removed from lagoon number 2 at the ALCHEM facility.

On January 25, 2008, MRO APS staff visited the Denton dumpsite and observed at least 27 piles of
material that appeared to be spent bauxite residuals from ALCHEM. Photos and samples of the material
were taken. A pH measurement was performed in the MRO lab using a calibrated meter. The sample
had a low pH (3.7) typical of ALCHEM spent bauxite. The material was residuals generated at the
ALCHEM facility.
G. The Division has not issued a permit for the disposal of the residuals at the Denton dump site nor is the
dump site a permitted solid waste facility approved to received such residuals pursuant to 15A NCAC 02T
.1103.
H. Staff costs and expenses associated with observing the violations, defining their nature and bringing
enforcement action totaled $793.73.
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, was issued on December 28, 2006, and became effective and enforceable on
November 27, 2007. Permit WQ0002702, was issued on December 28, 2004 and became effective and
enforceable on July 5, 2007.
C. ALCHEM violated G.S. 143-215.1 and part 6 of permit WQ0002702, by disposing of spent bauxite sand at
an unapproved off -site location.
D. General Statute 143-215.6A(a) 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.
E. 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.
F. 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:
Ill. DECISIONS:
ursuant 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. 143B-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;
(4) The cost of rectifying the damage;
(5) The amount of money saved by noncompliance;
(6) Whether the violation was committed willfully or intentionally;
(7) The prior record of the violator in complying or failing to comply with programs over which the
Environmental Management Commission has regulatory authority; and
(8) The cost to the State of the enforcement procedures.
Accordingly, ALCHEM is hereby assessed a civil penalty of:
$ 33,750.00 **for failing to perform to permit standards as required by G.S. 143-215.1. ,
Permit W00002702 condition 6 states, "The residuals generated from these treatment
facilities must be disposed of in accordance with General Statute 143-215.1 and in a
manner approved by the division."
$ 793.73 Investigation and Enforcement costs assessed.
$ 34,543.73 TOTAL AMOUNT DUE
IV. NOTICE:
l reserve the right to assess civil penalties and investigative costs for any continuing violations occurring after
'he assessment period indicated above. Each day of a continuing violation may be considered a separate
, iiolation 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).
(Date) Andrew H. Pitner, P.G.
Environmental Program Supervisor III
Aquifer Protection Section
Mooresville Regional Office

STATE OF NORTH CAROLINA
DEPARTMENT OF ENVIRONMENT
AND NATURAL RESOURCES
COUNTY OF ROWAN
IN THE MATTER OF ASSESSMENT)
OF CIVIL PENALTIES AGAINST )
}
ALCHEM, Inc., )
Permit No. WQ0016338 and )
Permit No. WQ00002702 )
WAIVER OF RIGHT TO AN
ADMINISTRATIVE HEARING AND
STIPULATION OF FACTS
FILE NO. PC-2008-0026
Having been assessed civil penalties totaling $34,543.73 for violation(s) as set forth in the assessment
document of the Division of Water Quality, Aquifer Protection Section dated June 30. 2008 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

JUSTIFICATION FOR REMISSION REQUEST
Case Number: PC-2008-0026 County: Rowan _
Assessed Party: ALCHEM, Inc.
Permit No. (if applicable): W00016338 &WQ0002702 Amount assessed: $34,643.73
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)
assessment
factors are listed in the civil penalty
(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 activftles
necessary to achieve compliance).
EXPLANATION:

PLEASE PRINT CLEARLY OR TYPE
STATE OF NORTH CAROLINA a
t..:- f L
COUNTY OF " �" X• (1) .Rowan �%r-"rt,;%G f:y, •:e C1:'i?..,�
(2) Alchem, Inc.
Case No. PC-2008-0026
(your name) PETITIONER,
(3) N. C..Department of Envirnnn,ental
and Natural Resources (NCDENR)
RESPONDENT.
(The State agency or board about which you are complaining)
l JUL 29 20
IN THE OFFICE OF
ADMINISTRATIVE HEARINGS
EXHIBIT
iu
10
PETITION
FOR A
CONTESTED CASE REARING
I hereby ask for a contested case hearing as provided for by North Carolina General Statute § 1 SOB-23 becausO the Respondent has:
(Briefly state facts showing how you believe you have -been harmed by the State agency or board.)
DENR f1led an enforcement action against us for disposing of waste We did not dispose of
any waste. We have a material that is a beneficial
in Davidson Count . After
here WP Addi .ionall t hark ta--otLr..Plant. ,
y,_r rtain facts nrQ��ntPd by�(`nFNR ra inrnrra�t
(If more space is needed, attach additional pages.)
(4) Because of these facts, the State agency or board has: (check at least one from each column)
deprived me of property; x exceeded its authority or jurisdiction;
x ordered me to pay a fine or civil penalty; or
otherwise substantially prejudiced my rights;—x—erroneously;
AND --x—failed to use proper proc�tiure;
—2_acted arbitrarily or capriciously; or
x failed to act as required 4 law or rule,
(3) Date: 7-24-08
(7) Print your full a,
(8) Print your name
(9) Your signature:
You must mail or d--ul a' —%Jr i or ill's t'et'tion to the State agency or board named on line (3) of this m. You should contact the agency or
board to determine the name of the person to be served. foi
(6) Your phone number:( 910) 843-21�,Z1 ext , 23
CERTIFICATE OF SERVICE
I certify that this Petition has been served on the State agency or board named below by depositing a copy of N with the United States Postal Service
with sufficient postage affixed OR by delivering it to the named agency or board:
(10) Ms. Penny Thompson
od)
(I2) 1601 Mail Service
(street address/p.o. box)
(13) Thisthe 244 dayof
f 1�i.._
(14) — ., l9 ,t )
(city)
,20 08 .
(your signature)
(11) NCDENR
- (State agency or board isied on line 3)
(zip
;dhen you have completed this form, you MUST mail or deliver the ORIGINAL AND ONE COPY to the 0 ' ce of Administrative Hearings, 6714
lail Service Center, Raleigh, NC 27699-6714.
H-06 (11/99)

Alchem History from MRO files
Updated by Ellen Huffman (custodian of the records)
"*" indicates hard copy in package for trial.
LA
IBIT
Please note that the DENR MRO has found files- in several sections/divisions due to the different types of permits issued for
the same process i.e., residuals, recycle, groundwater, air, solid waste, and hazardous.waste.
Pertinent History:
*December 30, 1985- A complaint investigation by DENR concludes that ALCHEM had several (unreported)
releases from the Red Road location and operates a process that requires a permit from DWQ.
*An old newspaper article is found in the file regarding ALCHEM spills.
May 1985 through Oct. 1989 multiple applications are submitted by ALCHEM — all are returned insufficient.
*January 10,1990 — ALCHEM is issued permit # WQ0002702 for wastewater recycle system.
*October 25,1990 — NOV issued for WQ0002702 —discharge of ALUM into creek.
*April 8, 1993 — permit is modified for ALCHEM to add 5 more lagoons.
April 20, 1993 ALCHEM wants groundwater monitoring removed. Request is denied.
June 1993 - ALCHEM petitions the permits groundwater requirements. Requirements stay.
September 1993 — ALCHEM petitions NC EMC to drop VOC testing from the permit.
More spills noted in 1994 but, no NOVs on file.
, June 27, 1994 - Permit is renewed.
1994=1998-ALCHEM has multiple groundwater monitoring issues.
*Jan. 1999 - renewal is issued for WQ0002702 without beneficial use request.
*March 1999, ALCHEM is issued a separate permit WQ0016338 for beneficial use of spent bauxite on site as
structural fill for future plant expansion.
April 29, 2003 —.complaint white stuff (spent bauxite) in creek. WQ0016338.
*May 12, 2003 — NOV/NRE (notice of recommendation for enforcement) for WQ0016338 for
runoff of spent bauxite in creek (May 23, 2003, Tara group is hired for cleanup)
Note: reports show low pH in creek, in spent bauxite lagoons, in run-off puddles below plant.
August 8, 2003 — MRO photos show very little clean up activity has taken place.
August 18, 2003 penalty assessed for May 12, 2003 NOV for WQ0016338.
*August 19, 2003 - NOV issued for WQ001.6338 failure to incorporate remedial Actions/illegal
discharge/surfacewater quality standards violations.
* March 2004 —A settlement agreement for WQ0016338 is filed for cleanup of spill (May 2003),
remediation of creek, and a fine of $4,878.28 for above NOV.

December 28, 2004 to June 19, 2007 -permit WQ0002702 is renewed with addition of several
requirements. ALCHEM subsequently adjudicates this permit and holds it in the courts for over two
years ending up in the NC Court of appeals. The permit stands as written -June 19, 2007.
*January 12, 2005 — NOV WQ0016338 DWQ (Wes Bell) for incomplete clean up of spill and low
pH discharges that continue to affect the creek.
August 2, 2005 — issues found previously continue. ALCHEM hires BOYLE Engineering to
perform a site evaluation.
Sept. 20 2005 — An NOWNRE for WQ0002702was issued. A request for a site life estimate of the
fill area was requested along with a long term disposal plan for the spent bauxite.
*December 20, 2006 - NOV WQ0016338 apparent berm failure and low pH. ALCHEM is told
not to use the fill area until the area is stabilized / repaired.
*December 28, 2006 — permit WQ0016338 previousely known as a"bauxite residual reuse
program (as fill) is re-newed and reissued as a "bauxite residual (spent) monofill surface disposal
system".
January — December 2007
*January 26, 2007 — A letter from Alchem, asking the MRO to consider allowing 500 tons of material to
be moved and put into an area near the railroad. ALCHEM re -stated the desire to use the fill as structural
fill for placement of chemical mixing tanks.
*February 9, 2007 — A faxed letter from ALCHEM mentions disposal possibilities but no real plan. Asks
againfor permission to remove sand to fill area. (WQ0016338)
*February 19, 2007 — A letter from ALCHEM regarding NOV for permit WQ0002702. Note: the NOV
was for groundwater violations. The letter did not offer any real solutions but again, requested
permission to remove sand to the fill area that is permitted under WQ0016338.
Inspections continue to find the same violations.
*November 27, 2007. A settlement agreement is filed. In that agreement ALCHEM agrees to
(among other things):
a: dispose of bauxite in a manner consistent with water quality general statutes. It is anticipated
that the bauxite in the first lagoon (cleaned) will be disposed of off site (i.e. subtitle D landfill) until
the spent bauxite residuals can be treated to meet the terms of this agreement (i.e. pH of 6.0).
January 24, 2008. Speaker conference call included Andrew Pitner, Peggy Finley and Ellen Huffman.
MRO informed that:
• Spent bauxite sand from ALCHEM has been disposed of at a site near Denton, NC. Go hwy 109
out of Denton, NC, .2 miles to Tom's Creek Church Road, turn rt. go .1 miles to pansy
properties. Piles are stockpiled in fields.
2

January 25, 2008 - MRO APS staff from the Mooresville Regional Office (MRO) visited the Denton
dumpsite and observed 27 +/- piles of material that appeared to be spent bauxite sand from ALCHEM.
Photos and samples of the material were taken.
A pH measurement was performed in the MRO lab using a calibrated meter. The sample had a low pH
(3.7) typical of AMCHEM spent bauxite.
The material appears to be spent bauxite residuals generated at the ALCHEM facility.
March 27, 2008 — Notice of Violation — and NRE for unauthorized disposal/ dumping of spent bauxite.
April 17, 2008 — A file note indicates cleanup had been completed. Site was seeded and straw in place.
June 23, 2008 — letter from Randall Andrews stating that the waste dumped off site is not waste at all it is a
product of ALCHEM. AN MSDS was attached.
June 30, 2008 - Assessment for civil penalties, illegal dumping, $34,543.73.

EXHIBIT
NORTH CAROLINA DEPARTMENT OF NATURAL RESOURCES AND COMMUNITY DEVELOPMENT
DIVISION OF ENVIRONMENTAL MANAGEMENT
WATER QUALITY SECTION
POST OFFICE BOX 950
MOORESVILLE, NORTH CAROLINA 28115
REPORT OF Complaint Investigation: Alchem Inc
PLACE VISITED Alchem Inc: Rockwell DATE Report Date: 12/30/85
ADDRESS P. 0. Box 171 Rockwell RIVER'BASIN Yadkin
BY WHOM., Mr, Monty Payne, Ms. Tana FEZer, Mr. Rex TIME SPENT
Gleason, Mr. Jesse. Wells
PERSONS CONTACTED. Mr. Randall Andrews, Mr. Keith Andrews, ..Co-Own'
.REASON..FOA-VISIT ..Complaint Investigation
COPIES TO:- jowan.County Health Department
Tesse Wells
REPORT:: On.November 15, 1984, this Office received a complaint concerning runoff
from Alchem,; Inc.. The complaint was.about.material stockpiled at the site running
off onto..adjoining property and washing into a nearby stream as a. result of rainfall
runoff.
On November'30,.:1984, Mr. Monty Payne of this Office.investigated.. The
investigator observed where rain water and spillage entered a makeshift catch basin,
from which it had overflowed onto adjacent property.. Mr..Keith Andrews, Co-owner,
was -contacted at this time and he explained how an excessive amount of rain fall had.
caused' the basin'to overflow,.and they (Alchem) were planning to recycle the water
in.the basin.b4ck to the plant, remove the contaminated soil in -the field and build
a larger.basin.:to prevent future runoff.
Mr. Andrews..also explained that the material stored behind the plant.was
their raw.product, aluminum. hydrate. Which.they•combined.with concentrated sulfric
acid to made a high grade alum. 'The aluminum hydrate in the contaminated soil and
rainwater, could be used in their process after some of the impurities were removed.
Checking.the.pH with litmus paper before collecting .samples, the investigator
found that the'pH:was notgreater than 2.0 standard units at the catch basin and in

Page Two
the adjacent field where the runoff had accumulated. The metals sample obtained
at the same locations showed a high concentration of aluminum, iron, sodium and zinc.
The stream below Alchem was checked by Mr. Payne at the bridge on SR 2340, but
nothing abnormal was observed, although the metals sample taken did show a slightly
elevated contentration of aluminum and iron.
On December 6, 1984, this Office received a complaint, from the City of
Rockwell's maintenance department concerning a white coloration to an unnamed
tributary to Second Creek'. On December 7, 1984, Mr. Payne investigated. He'found
no discoloration to the creek, but the sample obtained did show a'high
concentration of aluminum.
On January 2, 1985, Mr. Jesse Wells, of this Office, and Mr. Payne returned
to the Alchem area. to sample wells at adjacent residences for possible contamination.
Neither of the wells sampled showed contamination but a stream sample obtained
showed very high concentrations of aluminum, iron, zinc and manganese. On
January 7, 1985, stream samples were again obtained and again they showed extremely
high concentrations of aluminum, iron and zinc.
During the time. -of mid December through early January, the stream bottom
became covered with a dirty -white floc. This floc appeared to start where a small
underground spring, or tributary, entered the creek. it is believed that this spring
or tributary was contaminated from material leaching through the soil at Alchem.
On February 28, 1985, stream samples were again obtained and they also showed
high levels of aluminum, iron and manganese in the. creek.
On March 26, 1985, this Office received another complaint from a resident in
the Alchem area about possible well water contamination. The complainant was
concerned about his/her well water being contaminated because it had a brownish
color, bad taste, and left a residue on anything that was exposed to continuous
water contact.
The following day, March 27, Ms. Tana Fryer, . of this Office, and Mr. Payne'
investigated.. Because of the excessive amount of disturbance in this area the
(the area was being cleared and the brush burned) the investigators did not find
the runoff complained about, for they were under the impression that the runoff
had just occurred. But on a return investigation oh April 1, 1985, they found the
runoff complained about, which appeared to have occurred sometime before the complaint.
Soil and well water samples were taken at the complainants residence during
these visits. The soil samples showed a high concentration of aluminum, iron
and magnesium; the well water sample showed high concentrations of aluminum and
manganese. Stream samples were also taken. The samples upstream of the small.
underground tributary did not show the high concentrations of aluminum, iron,
manganese, iron and zinc as the downstream sample did.
The final discovery from these visits, was a path that the runoff had followed
toward the stream. Although the path stopped 100-150 ft. from the stream, it
was still very pronounced.
Stream samples obtained on June 11, 1985, showed a high concentration of
aluminum, iron and manganese downstream of the small tributary. Upstream of the
tributary these concentrations were higher than expected, but nowhere near the
level of the downstream sample. Bioassay samples were also taken at this time.

Page Three
The downstream sample had a LC50 of 27%; the upstream sample had a LC50 of
zero, no toxicity. The Aquatic Toxicology Group who performs bioassay testing for
the State, reported that what appeared to kill the test organisms was a low pH.
In July more stream samples were obtained.* The tributary was again used
as the dividing point to separate upstream and downstream. Next the stream
was vertically divided into an upper and lower zone, providing four areas to
consider. The top zones, both upstream and downstream, showed no problems with metal
concentrations or pH, but the bottom zones showed a vast difference. The upstream
bottom zone showed a high concentration of aluminum, iron and zinc, but no pH
problem. The downstream bottom zone showed high concentrations of aluminum, iron
chromium, copper, manganese and zinc; it also had a low pH.
On August 8, 1985, a meeting was held at Alchem, Inc. with Mr. Randall
Andrews, Co-owner of Alchem Inc., Mr. Richard Doby and Mr. Mack Henderson of
Solid & Hazardous Waste, Mr. Jesse Wells, Mr. Rex Gleason and Mr. Monty Payne
of the Division of Environmental Management. The meeting dealt with what
impact Alchem was having on the environment and a walk through the plant.
During the tour, the pH was taken at several points and a pH below 2.0 units was
found at several points, which classified the material as hazardous.- Therefore,
the clean-up of this facility comes under the jurisdiction of Solid & Hazardous Waste.
On September 9, 1985, another meeting was held, in Raleigh, with Representatives
from Alchem, Solid & Hazardous Waste and this Department to determine what actions
need to be taken for the clean-up. It was determined that the ponds need to be
emptied and the contaminated soil be removed and if the lagoon was continued to be
used it had to be lined. Secondly the contaminated soil has to be neutralized or
removed. Thirdly, the contaminated .well would have to be cleaned or a new well
put in. Last, there was an excessive amount of.spillage throughout the plant
which had to be controlled.
Summary: The samples obtained over the year show that an excessive amount of aluminum
and possibly sulfric acid has escaped from the facility, which has apparently caused
surface and ground water contamination. Alchem has begun clean-up procedures in
conjunction with Solid & Hazardous Waste and Division of Environmental Management.
They have removed some of the soil around the contaminated well and replaced this
well. They have also submitted an application for a non --discharge permit to
construct an addityonal storage lagoon, which is being evaluated by this Office.
This Office will keep abreast of the clean-up at Alchem until it is completed.

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EXHIBIT
22 1090
State of North Carolina
G�ent of Environment, Health and Natural Resources
Division of Environmental Management
512 North Salisbury Street • Raleigh, North Carolina 27611
James G. Martin, Governor
William W. Cobey, Jr., Secretary
Mr. Randall F. Andrews
Alchem, Inc.
Route 2, Box 521-C
8135 Red Road,
Rockwell, NC 28377
Dear Mr. Andrews:
R. Paul Wilms
Director
January 10, 1990
Subject: Permit No. WQ0002702
Alchem, Inc.
Industrial Recycle - Bauxite Process
Rowan County
In accordance with your application received November 17, 1989, we are forwarding
herewith Permit No. WQ0002702, dated January 10, 1990, to Alchem, Inc. for the construction
and operation of the subject recycle facility.
This permit shall be effective from the date of issuance until December 31, 1994, and -shall -
be subject to the conditions and limitations as specified therein.
If any parts, requirements, or limitations contained in this permit are unacceptable to you,
you have the right to request an adjudicatory hearing upon written request within 30 days
following receipt of this permit. This request must be in the form of a written petition, conforming
to Chapter 150B of North Carolina General Statutes, and filed with the Office of Administrative
Hearings, P.O. Box 11666, Raleigh, NC 27604. Unless such demands are trade this permit shall
be final and binding.
One set of approved plans and specifications is being forwarded to you. If you need
additional information concerning this matter, please contact Mr. William Barlow at 919/
733-5083.
Si cerely,
harles R. Wakil
Acting Director
cc: Rowan County Health Department
v,'Mooresville Regional Office
Environmental Hydrogeological Consultants
Groundwater Section
Pollution Prevention Pays
P.O. Box 27687, Raleigh, North Carolina 27611-7687 Telephone [phone]
An Equal Opportunity Affirmative Action Employer

NORTH CAROLINA
ENVIRONMENTAL MANAGEMENT COMMISSION
DEPARTMENT OF ENVIRONMENT, HEALTH AND NATURAL RESOURCES
RALEIGH .
RECYCLE SYSTEM 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
Alchem, Inc.
Rowan County
FOR THE
construction and operation of two (2) lagoons each approximately 50' W x 200' L x 10' D and all
associated pipes, valves and appurtenances to serve Alchem, Inc. with no discharge of wastes to
the surface waters, pursuant to the application received November 17, 1989, and in conformity
with the project plan, specifications, and other supporting data subsequently filed and approved
by the Department of Environment, Health and Natural Resources and considered a part of this
permit.
This permit shall be effective from the date of issuance until December 31, 1994, and shal
be subject to the following specified conditions and limitations:
1. This permit shall become voidable unless the facilities are constructed in accordance with
the conditions of'this permit, the approved plans, specifications, and other supporting
data.
2. This permit is effective only with respect to the nature and volume of wastes described in
the application and other supporting data.
3. The facilities shall be properly maintained and operated at all times.
4. This permit is not transferable. In the event there is a desire for the facilities to change
ownership, or there is a name change of the Permittee, a formal permit request must. be
submitted to the Division of Environmental Management accompanied by an application
fee, documentation from the parties involved, and other supporting materials as may be
appropriate. The approval of the request will be considered on its merits and may or may
not be approved.
5. Upon completion of construction and prior to operation of this permitted facility, a
certification must be received from a professional engineer certifying that the permitted
facility has been installed in accordance with this permit, the approved plans and
specifications. Mail the Certification to the Permits and Engineering Unit, P.O. Box
27687, Raleigh, NC 27611.

that the facilities fail to perform satisfactorily, including the creation of
6. In the event
nuisance conditions, the Permittee shall take immediate corrective action, including those as
may be required by this Division, such as the construction of additional or replacement
wastewater treatment or disposal facilities.
7. The Mooresville Regional Office, phone no. 704/663-1699, shall be notified at least
forty-eight (48) hours in advance of operation of the installed facilities so that an in -place
inspection can be made. Such notification to the regional supervisor shall be made during
the normal office hours from 8:00 a.m. until 5:00 P.M. on Monday through Friday,
excluding State Holidays.
8. The sludge generated from these treatment facilities mu t be Nosed of in rth Carolina rdans on ce h
General Statute 143-215.1 and in a manner approvedY the
Environmental Management.
9. The issuance of this permit shall not relieve the Permittee of the responsibility for damages
to surface or groundwaters resulting from the operation of this facility.
10. The facilities shall be effectively maintained and operated as a non -discharge system to
prevent the discharge of any wastewater resulting from the operation of this facility.
11. Diversion or bypassing of untreated wastewater from the treatment facilities is prohibited.
12. Freeboard in the lagoon shall not be less than two feet at any time.
13. Any monitoring deemed necessary by the Division of Environmental Management to insure
ill be established and an acceptable sampling
surface and ground water protection w
reporting schedule shall be followed.
14. Adequate inspection, maintenance, and cleaning shall be provided by the Permittee to
insure proper operation of the subject facilities.
15. The Permittee or his designee shall inspect the wastewater recycle facilities to prevent
malfunctions and deterioration, operator errors and' discharges which may cause or lead to
the release of wastes to the environment, a threat includito n health, or a nuisance.
nand time of
Permittee shall keep an inspection log or summary g at east he dateinspection, observations made, and any maintenance, repairs, or corrective actions taker
t
by the Permittee. This log of inspections shall be maintained by the Pertittee for a period
of three years from the date of the inspection and shall be made available upon request to
the Division of Environmental Management or other pertmitting authority.
16. Any duly authorized officer, employee, or representative of the Division of Environmental
Management may, upon presentation of credentials, enter and inspect any property,
premises or place on or related to the disposal site and facility at any reasonable time for the
purpose of determining compliance with this permit; may inspect or copy any records that
must be kept under the terms and conditions of this permit; or may obtain samples of
groundwater, surface water, or leachate.
17. The annual administering and compliance fee must be paid by the Permittee, within thirty
(30) days after being billed by the Division. Failure to pay the fee accordingly may cause
the Division to initiate action to revoke this permit as specified by 15 NCAC 2H .0205
(c)(4).
18. Failure to.abide by the conditions and limitations contained in this permit may subject the
Permittee to an enforcement action
General statute 143 215.6 Environmental Management in
accordance with North a
FA

19. The issuance of this permit does not preclude the Perr ttee from complying with any and
all statutes, rules, regulations, or ordinances which may be imposed by other government
agencies (local, state, and federal) which have jurisdiction.
20. A set of approved plans and specifications for the subject project must be retained by the
pen- ittee for the life of this project.
21. Noncompliance Notification:
The Permittee shall report by telephone to the Mooresville Regional Office,
telephone no. 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 at the wastewater treatment facility which results in the treatment of
significant amounts of wastes which are abnormal in quantity or characteristic, such
as the dumping of the contents of a basin or tank; the known passage of a slug of
hazardous substance through the facility; or any other unusual circumstances.
b. Any process unit failure, due to known or unknown reasons, that render the facility
incapable of adequate wastewater treatment such as mechanical or electrical failures
of pumps, aerators, compressors, etc.
C. Any failure of a pumping station, sewer line, or treatment facility resulting in a
by-pass directly to receiving waters without treatment of all or any portion of the
influent to such station or facility.
d. Any time that self -monitoring information indicates that the facility has gone out of
compliance with its permit limitations.
Persons reporting such occurrences by telephone shall also file a written report in letter
form within 15.days following first knowledge of the occurrence. This report must outline
the actions taken or proposed to be taken to ensure that the problem does not recur.
22. The Permittee shall employ a certified wastewater treatment plant operator to be in
responsible charge of the wastewater treatment facilities. The operator must hold a
certificate of the grade at least equivalent to the classification assigned to the wastewater
treatment facilities by the Certification Commission. Within thirty days after the
wastewater treatment facilities are 50% complete, the Permittee must submit a letter to the
Certification Commission which designates the operator in responsible charge.
23. The lagoon shall have a liner of natural material at least one (1I foot in thickness at all
locations with a hydraulic conductivity of no greater than 1 x 10' centimeters per second
when compacted. Following installation and inspection of the lagoon liner, and prior to
waste disposal operations, verification of the liner's compliance with hydraulic conductivity
and thickness specifications must be provided to the Division of Environmental
Management, Groundwater Section, by the project engineer.
24. The Permittee, at least six (6) months prior to the expiration of this pennit,.shall request its
extension. Upon receipt of the request, the Commission will review the adequacy of the
facilities described therein, and if warranted, will extend the permit for such period of time
and under such conditions and limitations as it may deem appropriate.
25. The recycle lagoon shall not be located within 100 feet of water supply well.
3

Permit issued this the loth day of.January, 1990
TH CAROLINA NVIR NMI
MENTAL MANAGEMENT COMSSION
Charles R. Wakild, g irector
Division of Environmen anagement
By Authority of the Environmental Management Commission
Permit No. WQ0002702
January 10, 1990
Eneineer'c Certification
as a duly registered Professional Engineer in the State of North
Carolina, having been authorized to observe (periodically, weekly, full time) the construction of the
for the
project, Location.
Project Name
Permittee hereby state that; to the best of. my abilities, due care and diligence was used in the
observation of the construction such that tine construction was observed to be built within substantial
compliance and intent of the approved plans and specifications.
Signature
Date
Registration No
U

B,r�"'.w stvE o
EXHIBIT
a E
State of North Carolina
Department of Environment, Health, and Natural Resources
Mooresville Regional Office
James G. Martin, Governor Albert F. Hilton, Regional Manager
William W. Cobey, Jr,, Secretary
DIVISION OF ENVIRONMENTAL MANAGEMENT
October 25, 1990
Mr.-Raridall F. Andrews, President
Alchem, Inc.
Route 2, Box 521-C
Red Springs, -North Carolina 28377
Subject: Notice of Violation
Alchem, 8135 Red Road
Rowan County; NC
Dear Mr. Andrews:
Please find enclosed a Report of Investigation by Mr. Kim
Colson of this Office.concerning a discharge at the subject
facility. The report should be self-explanatory.
This discharge is a violation of G.S. 143-2.15.1 for which
enforcement action.may-be recommended which may result in a civil
penalty of -up to $10,000 per violation. Corrective measures should
be taken to prevent any future discharges. It is requested that you
submit a written response by November 7, 1990 detailing corrective
measures taken to rectify this problem.
If you have any questions concerning this matter, please feel
free to contact Mr. Kim H. Colson,, Mr. D. Rex "Gleason, Water Quality
Regional Supervisor, or me at this Office.
Sincerely,
Enclosure
KHC/bb
B"AJA 13-7. JA
Brenda Smith, P.G.
Regional Supervisor -
919 North Main Strcct, Moorcsvillc, N.C. 28115 • Telcphonc 704=663.1699 • FAX [phone]
An Equal Opportunity Affirmative Action Employcr

NORTH CAROLINA DEPARTMENT OF ENVIRONMENT, HEALTH
AND NATURAL RESOURCES
DIVISION OF ENVIRONMENTAL MANAGEMENT
WATER QUALITY SECTION
POST OFFICE BOX 950
.MOORESVILLE, NORTH CAROLINA 28115
REPORT OF: Unpermitted Discharge
PLACE VISITED: Alchem' 'Inc., Rockwell
DATE: October 15, 1990.
ADDRESS: 8135 Red Road, Rockwell
RIVER BASIN: Yadkin -Pee Dee 03-07-04
BY WHOM: Kim H. Colson, Environmental Engineer I %�✓�C
TIME SPENT: 3 hours
PERSONS CONTACTED: Wayne Drye, Alchem
REASON FOR VISIT: Complaint Investigation
COPIES TO: Rowan County Health Department
REPORT:
v
On October 15, 1990 this Office received a report concerning a
possible discharge of alum into an unnamed tributary to Second
Creek.
Several pH readings were taken along this stream. All pH
readings taken were below the stream standard of 6 s.u. In an
adjacent tributary, a pH reading of 6.8 s.u. was obtained. (See
attached U.S.G.S. map for exact location of pH readings.)
Alchem, Inc. is located at the upper end of the subject
stream's watershed. '"The' investigation at Alchem did reveal that a
lagoon, storing aluminum hydrate, had overtopped due to recent
rains. The lagoon is located just south of the Alchem office. The
lagoon.showed evidence of overtopping along the southernmost
embankment where. adequate freeboard had not been maintained.
This discharge, however, may not have caused the depressed pH
readings in the stream although it could have been a contributing
factor. There was no evidence of an alum discharge at the time of
the investigation.

Page Two
Conclusion: A Notice of Violation will be sent to Alchem, Inc. for
the unpermitted discharge from the aluminum hydrate lagoon. A
follow-up investigation will be conducted to determine the cause of
the substandard pH readings.
KHC/bb

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WATcR G
f
CERTIFIED MAIL
RETURN RECEIPT REQUESTED
Mr. Randall F. Andrews, President
ALCHEM, Inc.
2042 Buie Philadelphus Road
Red Springs, North Carolina 28377
Dear Mr. Andrews:
Se ��✓N� wQ
t 5 + (?3 Michael P. Easley, Governor
William G. Ross Jr.. Secretary
No Carolina Department of Environment and Natural Resources
August 19, 2003
Subject: Notice of Violation
Alan W. Klimek P. E. Director
Division of Water Quality
Coleen H. Sullins. Deputy Director
Division of Water Quality
EXHIBIT
F
ALCHEM, Inc.
Failure to Incorporate Remedial
Actions/Illegal Discharge/Surface Water
Quality Standard Violations
Permit No. WQ0016338
Rowan -County, N.C, _ _
Chapter 143, Article 21 of the North Carolina General Statutes (NCGS) authorizes and
directs the Environmental Management Commission of this Department to protect and preserve
the water resources of the State. The Division of Water Quality (DWQ) has the delegated
authority to enforce adopted pollution control rules and regulations.
Enclosed please find a copy of a.follow-up Investigation Report for the investigations
conducted on August 7 and 8, 2003 by Mr. Wes Bell and Mrs. Ellen Huffman of this Office. The
follow-up investigation was performed to determine ALCHEM, Inc.'s remedial actions to the
violations noted from the initial investigations dated April 29 and May 8, 2003, as stated in the
NOV/NRE letter/report dated May 12, 2003. As a result of these investigations (8/7 and 8/8/03),
the following conditions were found in violation of North Carolina General Statute (NCGS)
143-215.1 and 15A North Carolina Administrative Code (NCAC) 213 .0211 (3)(g):
Discharges (stormwater/leachate) were observed from the facility's
residual storage area entering an unnamed tributary to Second
Creek. The upstream pH values ranged from 6.72 s.u. to 6.78 s.u.
and the downstream pH values (following the discharges) ranged
from 3.80 s.u. to 4.70 s.u. No corrective actions have been initiated
at the residuals storage area and the affected tributary and
wooded/riparian areas as were noted in the prior investigations.
conducted on April 29 and May 8, 2003.
N. C. Division of Water Quality Mooresville Reeional Office 919 North Main Street Mooresville NC 28115 [phone]
rIM
14MENR
Customer Service
1-877-623-6749

Mr. Randall F. Andrews
NOV
Page Two
Please be advised that this report is being issued as a Notice of Violation (NOV) for the
violations of NCGS 143-215.1, 15A NCAC 2B .0211 (3)(g), and the facility's failure to initiate
remedial actions to the residual storage area and the affected tributary and wooded/riparian areas.
Be advised that NCGS 143-215.6A provides for a civil penalty assessment of not more that
twenty-five thousand dollars ($25,000.00), or twenty-five thousand dollars ($25,000.00) per day
when the violation is of a continuing nature, against any person who fails to abide by the
conditions of the permit and who fails to apply for or to secure a permit required by NCGS 143-
215.1. Penalties may also be assessed for any damage to the surface waters of the State that may
result from the unpermitted discharges.
It is -requested that you respond, in writing, within twenty days following receipt of this
Notice. The response should address the measures taken to collect and remove the fill material,
and efforts to restore all affected areas. Measures taken to prevent future discharges should also
be discussed.
Should you have questions, please do not hesitate to contact Mr. Bell or me at (704) 663-
1699.
Sincerely,
D. Rex Gleason, P.E.
Water Quality Regional Supervisor
Attachments
a: Rowan County Health Department
Wayne Drye, Plant Manager, ALCHEM, Inc.

NORTH CAROLINA DEPARTMENT OF ENVIRONMENT
AND NATURAL RESOURCES
DIVISION OF WATER QUALITY
WATER QUALITY SECTION
919 NORTH MAIN STREET
MOORESVILLE, NORTH CAROLINA 28115
REPORT.OF: Complaint Investigation
DATE OF INVESTIGATION: August 7 and 8, 2003
vJ6
INVESTIGATED BY: Wes Bell and Ellen Huffm a -TIME SPENT: 6.0 hours
PLACE VISITED: ALCHEM, Inc. business site and adjacent private properties
PHYSICAL LOCATION: Rockwell, Rowan County
MAILING ADDRESS: 8135 Red Road
Rockwell, N.C. 28138
TELEPHONE #: [phone]
RIVER BASIN: Yadkin -Pee Dee
PERSONS CONTACTED: Mr. Wayne Drye, Plant Manager, On -site Employees
REASON FOR VISIT: Follow-up investigation to confirm ALCHEM, Inc.'s remedial actions to
the tributary and wooded/riparian areas
COPIES TO: Rowan County Health Department
REPORT:
On August 7 and 8, 2003, Mr. Wes Bell (8/7/03 only) and Mrs. Ellen Huffman of this
office performed follow-up investigations at the ALCHEM, Inc. business site and adjacent
private properties.
This office received a response letter (dated 5/28/03) from ALCHEM, Inc. that outlined
the corrective actions that would be incorporated at the_ residuals storage area. These corrective
actions included: construction of a berm around the entire storage area, construction of a holding
pond to collect all runoff, cleanup of the affected stream, and the removal of a stormwater pipe
embedded in the residual storage area. In addition, Mr. Randall Andrews, President, met with
Mr. Bell and submitted the design of the berm and holding pond for the residuals storage area.
On 8/7/03, Mr. Bell did not observe any evidence that ALCHEM, Inc. had initiated any
stipulated corrective actions to the residual storage area, unnamed tributary, and wooded/riparian
areas. The erosion had significantly increased within the residuals storage area based on
observations made during the initial investigations (4/29/03 and 5/8/03). Both sediment basins
(for the residual storage area) were full of the residual material and one of the basins was
observed discharging into the unnamed tributary. ALCHEM, Inc. was removing the stormwater
via pump from the other sediment basin.

Complaint investigation
Page Two
Several smaller discharges of stormwater/leachate were observed entering the unnamed tributary
from the residual storage area. On 8/8/03, Mr. Bell and Mrs. Huffman observed the same
conditions that were noted in Mr. Bell's 8/7/03 investigation.
On both days of the investigation, the upstream pH ranged from 6.72 s.u. to 6.78 s.u._ and
the downstream pH values ranged from 3.80 s.u. to 4.70 s.u. The water quality stream standard
for Class C Waters is between the 6-9 s.u. (Reference: 15A NCAC 2B .0211(3)(g)). Note: The
downstream pH values (approximately 900 to 1100 feet below the confluence of an additional
tributary) ranged from 3.80 s.u. to 4.00 s.u. The pH value of the sediment basin effluent was
3.66 s.u. (on 8/8/03). In addition, the pH value for one of the side -stream discharges was 3.05
s.u. (on 8/8/03). Samples were collected in the tributary (upstream and downstream) and the
discharging sediment basin on 8/8/03.
On 8/8/03, Mr. Bell and Mrs. Huffman met with an ALCHEM, Inc. employee following
the inspection and sample collection/analysis of the tributary and sediment basin discharge. The
employee indicated that the residual storage area was too wet to perform the appropriate
measures to contain the runoff. Grass had been planted (as recommended by Rowan County
Environmental Services/Land Quality Section) and was observed on a small section of the
residual storage area. No equipment utilized for the anticipated corrective actions was observed
on -site. The reuse system was in operation during both investigations.
Mr. Bell contacted (via telephone) Mr. Wayne Drye, Plant Manager, on 8/11/03 regarding
the findings of this investigation.. Mr. Drye indicated that the facility had not incorporated
remedial measures due to the inclement weather and the resulting poor soil conditions. Mr. Bell
informed Mr. Drye of the violations observed on -site and the need for immediate corrective
actions. Mr. Drye indicated that he would initiate the appropriate corrective actions. A follow-
up investigation may be necessary to verify ALCHEM, Inc.'s remedial actions.

4�9it
STATE OF NORTH CAROLINA FILED IN THE OFFICE OF
ADMINISTRATIVE HEARINGS
COUNTY OF ROWAN, MAR -2 P 3. 5Q 03 EHR 1587 EXHIBIT
OFFICE OF
ALCHEIVI, INC., WAYNED. DRYE,AQI'•fIl'XIS)•RAFIVE. G
HE)A W4G S
Petitioner, )
V. )
SETTLEMENT AGREEMENT AND
NORTH CAROLINA DEPARTMENT OF ) - WITHDRAWAL OF PETITION
ENVIRONMENT AND NATURAL )
RESOURCES, DIVISION OF WATER . )
QUALITY, )
Respondent. )
_ The North. Carolina Department of Environment and Natural Resources ("DENR"),
Respondent, and Petitioner, Alchem, Inc., Wayne D. Drye ("Petitioner"), hereby enter into this
Settlement Agreement ("Agreement") in order to amicably resolve matters in controversy as they
relate to the civil.penalty assessment. This matter arose out of the assessment of- civil penalties
and costs totaling five thousand nine hundred ninety-eight dollars and twenty-eight cents
($5,998.28, which includes three hundred ninety-eight dollars and twenty-eight cents ($398.28)
in enforcement costs), imposed upon Petitioner on August 18, 2003 for alleged violations of
North Carolina General Statutes § 143-215. i et seq and Non -Discharge Permit WQ00-1.6338.
DENR and the Petitioner have reached the following settlement agreement in this matter:
L Petitioner will adhere to the following conditions:
a. Petitioner will submit a plan or schedule to remove sand and
other materials from a tributary to Second Creek and the
_1-

riparian areas of the two affected private properties adjacent
to Alchem, Inc.;
b. Petitioner will submit a plan or schedule for removal of sand
and other materials deposited by Petitioner's facility to the
Mooresville Regional Office ofthe Division of Water Quality
within thirty (30) days of execution of this agreement.;
C. Petitioner shall remove sand and other materials from the
creek, creek bank, and the areas where the deposits exist in
the forested area adjacent to the creek located on property
owned by Alchem, Inc. and the two affected private properties
adjacent to Alchem, Inc, in accordance with the plan or
schedule submitted.;
d. Petitioner shall submit written notice of completion of
removal of sand and other materials to the Mooresville
Regional Office of the Division of Water Quality within five
(5) days .of said completion. _.
2. The Petitioner will pay a total of four thousand eight hundred seventy-eight
dollars and twenty-eight cents ($4,878.28 ("Settlement Amount"), calculated as follows: Total
Penalty $5,600.00 - 20% of penalty=$4.480.00 (80% of penalty) + investigative costs of
$398.28 = $4.878.28} to DENR for settlement in the manner hereinafter described. The
Settlement Amount shall be made in the following manner: The Settlement Amount shall be
made in twenty-four (24) monthly payments. The first payment shall be due and payable on
S

March 1, 2004 in the amount of two hundred three dollars and thirty cents ($203.30). Each
payment thereafter shall be due and payable on the 1" day of each month consecutively in
the amount of two hundred three dollars and twenty-six cents ($203.26) totaling: $203.30 +
($203.26 x 2') $4,674.98 = $4,878.28. The last payment shall be due and payable on or before
February I, 2006.
The payments shall be by check made payable to the North Carolina Department
of Environment and Natural Resources (or to "DENR") at the following address:
Stormie D. Forte, Esq.
Attorney General's Office
Environmental Protection Division
Post Office Box 629
Raleigh, NC 27602-0629
4. The breach of any condition of Paragraphs one (1), or two (2) by Petitioner will
render due and payable the entire amount of the civil penalty assessment, including investigative
costs i.e., five thousand nine hundred ninety-eight dollars and twenty-eight cents ($5,998.28).
5. Petitioner and DENR expressly stipulate and acknowledge that, by entering into
this Agreement, Petitioner neither admits nor denies the allegations contained in the Findings and
Decisions and Assessment of Civil Penalties. However, upon a breach of paragraph one (1) or
two (2) of this Agreement, by Petitioner, the sole issue in any action by DENR is to collect the
Entire amount of the civil penalty assessment including investigative costs i.e., five thousand
nine hundred ninety-eight dollars and twenty-eight cents ($5,998.28) in accordance with the
terms of paragraph four (4) above and will be limited to the Petitioner's compliance with the
terms of this Agreement.

5. DENR agrees to accept payments totaling four thousand eight hundred seventy-
eight dollars and twenty-eight cents (S4,878.28), in complete satisfaction of the civil penalty
assessment subject to the terms of this Agreement.
6. Nothing in this Agreement shall restrict any right of DENR to take any
enforcement action against Petitioner for any future violations; i.e., violations occurring after
May 8, 2003.
7. The DENR and Petitioner agree that, for purposes of any future bankruptcy
proceeding, this Agreement is not intended as, nor shall it be deemed to constitute, a novation of
any claims asserted by DENR against Petitioner. Petitioner further agrees that all sums payable
to DENR pursuant to this Agreement are nondischargeable in bankruptcy under 11 U.S.C. § 523.
Nothing in this Agreement releases any nondischargeability claims that may be asserted by
DENR in any bankruptcy proceeding, and nothing in this Agreement shall be deemed a waiver of
the DENR 's right to rely on the nature of any claim or debt released in this Agreement to show
that the claim or debt is nondischargeable.
8. This Agreement shall be binding upon the parties and is entered into knowingly,
intelligently, and voluntarily.

WITHDRAWAL OF PETITION
9. Entry of this Agreement serve as Petitioner's Withdrawal of its Petition for
Contested Case Hearing Without Prejudice in these matters. The parties agree this matter is
concluded and that no further proceedings are needed or required to resolve the contested case.
This the 35_ day of February 2004.
FOR THE DIVISION OF WATER
QUALITY
Alan Klimek, Director of
Water Quality
Date: 3 z C) `f
D. Rex Gleason, Mooresville
Regional Supervisor
-, A
Date: --% G /_
ROY COOPER
Attorney General
By:
ormie D. Forte
Associate -Attorney General
N. C. Department of Justice
Environmental Division
9001 Mail Service Center
Raleigh, NC 27699-9001
[phone]
[phone]/Fax
PETITIONER:
-5-
Alchem,.Inc., Wayne D. Drye
Date: g 0 A Bey
Randall F. Andrews, Consultant
Alchem, Inc.
Date: g� " `4, Z00 V

t+ltehudl Fa�lcti.��+++'antas
William G. I:tx`y A.. ScavtarY
Norlh C arohnn Department of Cnvtrtnmtcnt and Natural E'.tsattrccc
Alan W. KltnveL l' E.. Dwr for
DwLston a:' \\ aler Quality
EXHIBIT
January 12, 2005
D H
Mr. Randall F. Andrews, President
ALCHEM, Inc.
2042 Buie Philadelphus Road
Red Springs, North Carolina 28377
Subject: Notice of Violation/Notice of
Recommendation for Enforcement
ALCHEM, Inc.
Violation of General Statute 143 215.1
Follow-up Investigation
Rowan County; N.C.
Tracking #: NOV-2005-A9S=0001
Bear N&. Andrews:
Chapter 143, Article 21 of the North Carolina General Statutes (NCO$) authorizes and directs the
Environmental Management Commission of this Department to protect and preserve the water resources of
the State. The Division of Water Quality (DWQ) has the delegated authority to enforce adopted pollution
control rules and regulations.
Enclosed please find a copy of a follow-up Investigation Report for the investigations conducted
on December 30, 2004 and January 5, 2005 by Mr. Wes Bell. The follow-up investigations were
performed to assess ALCHEM, Enc.'s on -site remedial activities and the condition of the tributary to
Second Creek (tributary). As a result of these investigations, the following conditions were found in
violation of North Carolina General Statute (NCGS) 143-215.1and 15A North Carolina Administrative
Code (NCAC) 2B .0211 (3Xg):
The acidic discharges into the unnamed tributary (U I) resulting from the
drainage through the unremediated wooded/nparian areas (on the
ALCHEM, Inc.'s property), had lowered the tributary's pH from 6.22 s.u.
(upstream) to 4.76 s.u. (10 - 20 yards downstream of where the drainage
enters the UT). No evidence was observed to suggest that ALCHEM,
Inc. had continued remedial efforts (required in the settlement agreement)
within the wooded/ripanan areas on the business site.
N_ C Division of Water Quality, Mooresville Regional office, 610 East Center Awrtue, Suite 301, Mooresville NC 28115 (704) 66+-1E9S ;USW:�' Scrvict
i-E7:-6`.i-674S

Mr. Randall F. Andrews
January 12, 2005
Page Two
Please be advised that this report is being issued as a Notice of Violation (NOV) and Notice for
Recommendation for Enforcement (NRE) for the violations of NCGS 143-215.1, 15A NCAC 2B .0211
(3)(g), and the facility's failure to continue to remediate the wooded/riparian area located on the facility's
property. Be advised that NCGS 143-215.6A provides for a civil penalty assessment of not more that
twenty-five thousand dollars ($25,000.00), or twenty-five thousand dollars ($25,000.00) per day when the
violation is of a continuing nature, against any person who fails to abide by the conditions of the permit
and who fails to apply for or to secure a permit required by NCGS 143-215.1. Penalties may also be
assessed for any damage to the surface waters of the State that may result from the unpennitted discharges.
This letter is also to advise you that this Office is considering sending a recommendation for
enforcement action to the Director of the Division of Water Quality for the acidic discharges into the
unnamed tributary to Second Creek, water quality stream standard violations (pH), and the facility's failure
to continue the cleanup on the unremediated areas on the facility's property. If you have an explanation for
the violations that you wish to present, please include same in the requested response. Your explanation
will be reviewed and if an enforcement action is still deemed appropriate, your explanation will be
forwarded to the Director along with the enforcement package for his consideration.
It is requested that you respond, in writing, within fifteen (15) days following receipt of this
Notice. The response should address the measures taken to immediately cease the acidic discharges
resulting from the drainage through the unremediated wooded/riparian areas, and the efforts to ensure
future discharges do not recur. In addition, a detailed plan should be included that specifies the
remediation activities utilized and the date of completion for the cleanup of the unremediated
wooded/riparian areas on the facility's property.
Should you have questions, please do not hesitate to contact Mr. Bell or me at [phone].
Sincerely,
D. Rex Gleason, P.E.
Surface Water Protection Regional Supervisor
Aiiawuuouw
cc: Rowan County Health Department
Stormie Forte, Associate Attorney General
Wayne Drye, Plant Manager, ALCHEM, Inc.
M
It

NORTH CAROLINA DEPARTMENT OF ENVIRONMENT
AND NATURAL RESOURCES
DIVISION OF WATER QUALITY
SURFACE WATER PROTECTION UNIT
610 EAST CENTER AVENUE/SUITE 301
MOORESVILLE, NORTH CAROLINA 28115
REPORT OF: Follow-up Investigations
DATE OF INVESTIGATION: December 30, 2004 and January 5, 2005
IIWESTIGATED BY: Wes Bell liT VIE SPENT: 6.0 hours
PLACE VISITED: Unnamed Tributary to Second Creek
PHYSICAL LOCATION: Rockwell, Rowan County
RIVER BASIN: Yadkin -Pee Dee
REASON FOR VISIT: Follow-up investigation to determine the condition "of the unnamed
tributary to Second Creek
COPIES TO: Rowan County Health Department
REPORT:
On December 30, 2004 and January 5, 2005, Mr. Wes Bell of this office performed
follow-up investigations on the unnamed tributary to Second Creek (tributary) impacted by the
runoff from the ALCHEM, Inc.'s (ALCHEM) residual storage area. ALCHEM personnel have
made noticeable progress with the remediation of the tributary and surrounding areas; however",
the wooded/riparian areas on both private and ALCHEM properties remain covered (in several
locations) with the residual material. Due to a pending (or threatened) third parry lawsuit,
ALCHEM was instructed (by their attorney) to cease their remedial efforts on the private
properties.
During both site visits, Mr. Bell observed a "rainbow sheen" on the water's surface and
an orange and white colored substrate throughout the tributary. The orange substrate and
"rainbow sheen" appeared to be caused by the natural microbial actions of iron bacteria.
However, no aquatic life was observed throughout the tributary.
ALCHEM personnel had previously installed a silt fence along the section of tributary
that runs througb/adjacent to the facility's property. The silt fence was installed to prevent . -
additional residual runoff into the tributary. The bottom section of the silt fence was not properly
secured and the front and end sections were collapsed. Mr. Bell had previously discussed (via
telephone) with Mr. Wayne Drye, Plant Manager, similiar problems with the silt fence.
Mr. Bell observed pools of water adjacent to the silt fence that appeared to have
It originated from the drainage of the wooded/riparian areas on the ALCHEM property. The
drainage had channeled through the accumulated residuals of the u remediated areas in the
wooded/dparian areas and discharged into the tributary at three different locations. The pH of
the three discharges ranged from 3.12 s.u. to 3.31 s.u. prior to entering the tributary. Note: All

Complaint Investigation
Page Two
pH measurements were taken by W. Bell on January 5, 2005. The upstream pH ranged from
6.22 s.u. to 6.25 s.u. and the downstream pH (10 - 20 yards below the lowest drainage area) was
measured at 4.76 sm. Additional downstream pH measurements were taken between the above -
noted sampling location and 15 - 25 yards upstream of the Medium Road culvert. These pH
levels ranged from 5.24. s.u. to 5.36 s.u. The increase in pH appeared to be influenced by the
buffering/dilution by spring water_ The tributary's pH at the Medium Road culvert was 4.71 s.u.
The tributary's pH downstream of the culvert ranged from 4.53 s.u. to 5.30 s.u. The final
tributary pH value (5.30 s.u.) was taken approximately 35 - 45 yards downstream of the Medium
Road culvert. Residual accumulations were also observed throughout this downstream section of
the tributary. No aquatic life was observed.
No additional residual runoff was observed from the residual storage area since the
construction of a berm around the entire residual storage perimeter. The pH of the stormwater
runoff collection basin (inside the berm) was measured at 3.57 s.u. - W. Bell did not observe any
additional sediment accumulations in the tributary; however, a significant rain event could wash
the residual material (in the unremediated wooded/riparian areas) into the. tributary due to the
poorly constructed/maintained silt fence..ALCHEM personnel should immediately initiate
cleanup activities on the unremediated areas on the facility's property (wooded/riparian areas).
In addition, the problems with the silt fence should be corrected to ensure additional residual
runoff does not occur.

F WA7F N /� micnaet 1-. t:asley, vovemor ; . --
O as
(�' j�William G. Ross Jr.; Secretary�O'�G �{`�j�—�j North Carolina Department of Environment and Natural Resources
0 r Alan W. Klimek, P.E. Director
j Division of Water Quality
AQUIFER PROTECTION SECTION
December 20, 2006
CERTIFIED MAIL EXHIBIT
RETURN RECEIPT REQUESTED
Mr. Randall Andrews
• � I
ALCHEM, Inc. CM 9 7003 2260 00013494 5390
2042 Buie Philadelphus Road
Red Springs, NC 28377
and
ALCHEM,*Ind: - ...
8135 Red:Road CNI # 7003 2260 00013494 5406
RoiiKAII :NC 28.138 v
Subject: Notice of. Violation/ Notice of
Recommendation for Enforcement.'
NOV No. NOV-2006-PC-0061
Violation of permit conditions of Non -
discharge permit No. WQ0016338
(dated March 1, 1999)
Bauxite Residuals Reuse Program
7 .: 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 -
arid`air-resources of the State. The Division of Water Quality (DWQ) 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.
While issues related to more recent permits are addressed, -your facility is currently-ope'rating under
the March 1, 1990, version of Non -discharge permit WQ0016338 for bauxite residuals reuse. An inspection
for permit W00016338 was conducted by Ms. Ellen Huffman, Aquifer Protection: Section (APS) Mooresville
Regional Office (MRO), Mr. David Goodrich, APS Central Office, and accompanied by :Mr. Wes Bell,
Surface Water Protection Section MRO, on December 5, 2006. .Several violations of the subject permit
were noted during this inspection. These violations include:
Permit conditions L 9 requires the residual program be effectively'maintained and operated as a non -
discharge system. and 11.3 requires adequate provisions be taken to prevent wind erosion and surface
runoff from conveying pollutants from the residuals treatment area onto the adjacent property or into
any surface waters:
• Conditions at the time of inspection revealed that the berm is not effectively'retaining the water
"that has collected in the residual bauxite disposal area. The pH -of the water in the storage -area
at the time bf inspection averaged 3.8 SUs. The pH of the water seeping from a 40ft- long area at
the foot of the backside of the berm was 3.13 SUs.
Division of Water Quality I Aquifer Protection Section J Mooresville Regional Office Phone: [phone] -Fax:' [phone]
610 East Center Street. Suite 301, Mooresville, NC 28115 Internet: httn:&w.ehnr.state.nc.us

ALGHLIVI
Page 2 of 2
December 20, 2006
As related to this issue, Mr. Goodrich requested an engineering evaluation of the berm on June 8,
2005. The MRO APS received the evaluation conducted by Boyle Engineering on March 1, 2006. This
report discovered that, "the existing embankment fill conditions are too variable and are unsuitable to retain
any additional lateral loads without risk of global stability failure and subsequent breach." (See BOYLE
Consulting Engineers report dated Oct. 24, 2005, Executive Summary, page 3).
In light of the conditions found during this inspection, including excessive amounts of stormwater
collected in the bauxite fill area and numerous seep areas on the outside of the berm, the DWQ APS has
concluded that this facility is not being effectively maintained and operated as a non -discharge system and
that the bauxite fill area cannot receive any more residuals until the area is stabilized and/or
repaired. Corrective measures taken to address this problem will need to be signed off_ on by a NC
Professional Engineer. As such, ALCHEM must find a suitable alternative disposal option for any
future lagoom cleaning and notify the Division in writing within 20 days of receipt of, this notice, of
the method of disposal to be used.
The Mooresville Regional Office is recommending an enforcement action against this permit for the
above referenced violations. If you have .justification that these violations are caused by circumstances
beyond your control, or you have an explanation that you wish to`present, please respond in writing within
twenty (20) days following receipt of this notice. The Mooresville Regional Office will review your response
and forward it to the Water Quality Division Director with the enforcement package. It should be noted that
that, in accordance with General Statute 143-215.6A,initiation of an enforcement action could result in
assessment of penalties up to $25,000 per day.
Please address your response to the attention of Ms. Huffman.* It is also requested that your response
i ence the date and subject of this NOWNRE, as well as the permit number. If.you- have any questions
concerning this matter, please do not hesitate to contact Ms. Huffman at [phone].
Sincerely,
Andrew H. Pitner, P.G.
Environmental Regional Supervisor MRO APS,
Enclosures
12-5-06 Inspection report
map & pH readings
cc: APS Land Application Unit, Permits* Enforcement
APS Land Application Unit, David Goodrich
Wayne Drye, Plant Manager, ALCHEM, Inc, Red Road
I

State of North Carolina
Department of Environment
and Natural Resources
Division of Water Quality
Michael F_ Easley, Governor
William G. Ross Jr., Secretary
Alan W_ Klimek, P.E. Director
TWA
A4
��Iva
MONOM Now
NC%DENR
NON -DISCHARGE COMPLIANCE INSPECTION
GENERAL INFORMATION
City/Town/Owner: Alchem Inc.
Permit No:: W00016338
Last Amended Date: N/A
SOC Issuance Date(if applicable): N/A
Permittee Contact: Wayne Drve
ORC Name: N/A
ORC Cert.#: N/A
County: _ Rowan County
Issuance Date: March 1, 1999
Expiration Date: December 31, 2004
Expiration Date: N/A
Telephone No.: 704/ 279-7908
Telephone No.: 704/ -
ORC: _
Reason for Inspection
X ROUTINE COMPLAINT X FOLLOW-UP OTHER
Type of inspection
Collection System Spray Irrigation Sludge _X—Other
Inspection Summary: (additional comments may be included -on attached pages)
This permit is expired. The new permit has been contested and currently in the adjudication
process. The facility was inspected using the permit conditions in the expired permit
WQ0016338, dated March 1, 1999.
David Goodrich, APS, Central Office, Andrew Pitner, APS, MRO, Wes Bell, SWP, MRO, also
attended the inspection on December 5, 1006. Physical readings of temperature and pH were
taken in several locations. See map and readings attached to this inspection report. The earthen
berm, surrounding the fill area, shows constant signs of seeping along the lower end of the berm
impoundment.. pH readings of the seeping water in this area were in the 3.08 SU range. pH
readings of the water inside the bauxite fill area, were in the 3.8 — 3.9 SU range. The earthen
berm was- originally constructed due to a previous failure to keep the bauxite residuals on site.
Boyle Consulting Engineers evaluated the berm for structural integrity in the. summer of 2005.
Continued on page 2
Is a follow-up inspection necessary X . yes —no
Inspector(s) Name(s)/Title(s) Ellen Huffman / Env. Specialist II
Telephone No. 704/663-1699 Fax No. 704/663-6040
Date of Inspection December 5, 2006

Water Recycle System Inspection pg 2
WQ0016338 ALCHEM, Inc.
Inspection Sumrnary Continued
The MRO APS received the Boyle report in March 1, 2006. The Boyle report reflected
inconsistencies in the berm construction and predicted probable failure. ALCHEM has not taken
any action to repair/replace the berm. Currently there is a large amount of rainwater in the
lagoon. This has increased the unstable conditions of the bauxite area. This inspection included
sampling of existing monitoring wells for permit 9 WQ0002712, which is the permit for the
water recycling system used -to wash the spent bauxite, stored in the three lagoons prior to final
use in the "fill" area. A "follow-up" inspection by Peggy Finley and Ellen Huffman was on
December 14, 2006 and included record keeping and another review of the seep area. The seep
area is still saturated.
Type of System
Bauxite Residuals Reuse
Record Keeping
YIN
Y Copy of current permit available at residual generating site
Y Current metals analysis (2 x's year)
Y TCLP analysis- 1 x per permit cycle, starting in 1999.
N Hauling records (# gal and/or ton hauled during calendar year to date)
N/E Records of lime purchased
Y Fill inspection log (records).
Treatment (check treatment type(s) used)
_ Wash Recycle System (WQ0002712)
Transport N/A
Spill control plan in transport vehicle?
Does transport vehicle appear to be maintained?
Comments -
Operation & Maintenance records N/A
Disposal Reuse Area
Describe stora7e:
No Site condition adequate
YES Signs of runoff / ponding
Monitoring well(s) Y/N: Y
The wells at this site are associated with the water recycle system permitted under WQ0002702

12/06/2006 09:29 919-715-e588 NCDE&NR/WATER CUAL PAGE 02
Temperature and pH Readings taken at the A.LCXIEM Facility in Rockwell
by APS Personnel on December S, 2006
Site
Water
#
Site Description
TCMP
PlI
1
Stormwater Drainage Ditch, downstream of railcar off-loading spot.
6.1°C
3.68
2
Approximately 50 feet downstream of Site # 1.
6.2°C
3.52
3
Shallow wetland or seep from stormwater detention pond, outside bean:
6.1°C
3.16
4
Same area as Site 4 3, near the base of the berm.
6.4°C
3.08
S"
The "corner" of the berrrxed stormwater detention pond.
9.7°C
3.80
6
Close to Site # 5. -
9.7°C
3.82
7
Upstream location along the "boundary" stream.
7.0°C
5.36
S
Approximately 90 feet downstream of Site # 7.
6.0°C
5.44
9
Approximately 90 feet downstream of Site # 8.
6.7°C
5.56
10
Passible surface seep in wet area between .."boundary' stream, and bezm.
9.8°C
5.66
11
"Elbow" of the "boundary" stream where it changes direction.
9.3°C
5.28
12
Apparent seep area below berm. Seeps noted on the berm itself.
8.4°C
3.04
13
Upper stormwater detention pond on northerd side of isthmus.
9.2°C
.3.94
14
Lower stormwater detention pond on southern side of isthmus.
9.1°C
3.98
15
Northwest corner of Lagoon # 2.
6.8°C
3.41
'-_ 16
Northeast corner of Lagoon # 3.
8.6°C
2.62
17
Southern edge of Lagoon # 1.
6.1°C
3.31
Note: All three Lagoons were essentially full of "sand" at the time of the field visit
on December 5, 2006.
•

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EXHIBIT
01/28/2007 19:55 9108435789 IAC INC
ALCHEN, INCO
)rnorate Offce
--12 Buie Phoadelphus Road
Red Springs. NC 28377
T-1. 91 O.W—.2121 — 800-522.2944
Pax 910.843-5789
rfaOsemralct
January 26, 2007
Mr. Andrew Pitner
F..livirolimental Regional Supervisor
NCDENR
610 East Center St., Suite 301
Mooresville, NC 28115
Re: NOV No. NOV-2006-PC-0061
8135 Red Road
Rockwell. NC 28138
Tel.[phone] 800462-2586
Fax [phone]
pdryeQalltel.nel
Dear Mr. Ptiner:
Tha1ik you for your letter of January 19, 2007. Alebem has not used the pernnitted fill
area since we received a letter about this in mid December. I have been talking with
Engineers about this project since then and trying to find a solution to this problem. At
one time we sold some of, our sand to a fertilizer manufacturer. I have contacted them
and taken new samples to try and get this as ata. outlet again. The only proposal that I
have, I recently received and just the cost for the engineering was far more than the value
of, our company. At one time I called the Salisbury Landfill, but leaving to. pay the
disposal fee is something that would wreck us economically. We are fast pulling the
water down to very minimal levels again. There were two very large rain storms back in
middle and late November. We have changed the ditch coming under the railroad and so
now the water from the large area across the railroad is diverted from our contained area.
I would like to ask that you consider allowing us to put about 500 tons from the storage
area nearest our reactor into the area near the railroad. I plan to use that fill, and that area
on which to put.our Magnesium Hydroxide and Calcium. Hydroxide mixing tanks.
Thank you for your consideration.
Best regards, J
ALCHF..M, INC
Randall F. Andrews,
Plant Manager

..............:.......................................................
FRC" FAX NO. :
ALCHEM, INC*
Corporate Ofi'iC6
204. Buie Ph02,0 hus Road
W Springs. NC 28377
Tel. [phone] — 800-522-2944
Fax 910-MS-5789
Tfa(assemr.net
�.. Pebrlisitq -9;1007.
Mr. Andrew Pitner
Environmental Regional Supervisor
NCDENR
610 East Center St., Suite 301
Mooresville) NC 28115
Sales and Manufaeturina
s13S Red Road
Rockwall, NC 28138
Tel. [phone] — 800.462-2586
Fax [phone]
pdrye(c_a1pe1.nel
Dear Mr. Ptiner:
Thank you for meeting with me last Wednesday. I would like to outline some of the
problems that we have discussed.
} Seepage of the captured liquid.- We were unaware that there could be seepage. I have
called at least 6 engineering companies to try and get some help. Several of them, such
as BOYLE ENGiN}3EP NG were too busy for the foreseeable future.. I did get people
frond two firms to come and look. Monday afternoon 1. had another on site visit and I feel
that this firm has an idea of how to solve the problem that will work scientifically and be
economical. We expect to have a very sound step by step plan very shortly. This plan
should include work by a. Geologist and "PE. I have looked .,into taking. the sand
somewhere else. At one time I had contacted the ROWAN COUNTY LANDFILL. I
have called them again. If can tell you that if we are forced to take out the sand to a
landfill, there is every possibility that because of the economics ALCHEM will not be
able to survive. There is..a real possibility that ALCHEM will be forced to close and
terminate the jobs of all employees.. Our business has not been profitable for several
years. In the last four years we have had two very. large competitors declare bankruptcy
and close plants. 1 realize that it is not your responsibility to keep our company
operating, but it is mine, and I do not wish to close and tell our employees to go to work
elsewhere.
We are currently mixing all of the sand that we remove from Lagoons.witb lime and then
we check the pH to make certain that it is above 6. We have the test results and bave our
PH measuring instalments on site. T belicve that Ms. Pluffman has reviewed these results
in the past. One of the stipulations of the Lagoon permit is that R pH level of 6 be tested
for and results logged.. There certainly is no structural reason for not using_ the sand. to
raise the ground level in the area near the railroad tracks. This is an area that 1. wish to
use for our Alkali Slurry manufacturing. We now have all of the equipment on site to
place the sand and compact it to a level where there will be some structural integrity.

.........................................................................
FROM FAX NO. :
ALC"v"jvjM, I NC.
Co orate O ce
2042 Wie Phlladelphus Road
Red springs, NC 28377
Tel. [phone] — 800.522.2944
Fax [phone]
!(A(405amnnet
I
.............................................................
Feb. 21 2002 10:55PM P2
Sates and Mangactarin
8135 Red Road
Rockwell, NC 28138
Tel. [phone]E- 704.279-8418
[e-mail]
There is no problem with using the sand but it is necessary to pack it properly. My
understanding is that it is necessary to pack approximately 6 feet of sand to achieve a .
sound structural integrity- If we use clay or fill from off site, we would need to use the
same packing procedures. It makes no sense to me to pay the landfill to take our sand
and then buy dirt from offsite. We have over the years contacted numerous 4potential
users of the sand. I could give you a list if that is necessary. I have several other . .
possibilities that we are exploring. At one time we sold the sand to a fertilizer
manufacturer as a filler and replacement for river sand. J have contacted the Plant
Manager and personally taken a sample. I have famished them with analytical data on
the sand. The project is certainly in the discussion stage. I do not see the need to furnish
you at this time with his name and telephone number. They are within 60 miles of
Rockwell and the economics will work. I am following this very closely and will check
on this again probably Monday or Tuesday. I have some other potential uses and I am
exploring them. All of these take time and cannot be done fast. We need to use 500 tons
of our sand now. We currently mix it with time. We have lime on site for the mixing
and pH adjustments. We expect to remove the bricks and damaged reactor and place the
newly built wash tank within. 7-10 days. This should allow us to remove.more of our
product from the sand and more easily raise the pH level of the sand.
I would like to point out that the level of water in the sand berm area is already very low.
We have diverted the stoma water around the berm area instead of into it. We are
currently pulling up water from this area into our process. We feel that within 7-10 days
there will be no water in this area. We feel that with the storm water diversion that we
will be able to keep the water level at a level so that there is essentially no danger of any
additional possible seepage.
please consider my request to remove some of the sand from these lagoons and use it so
that we can continue to operate our facility in a financially sound manner.
Best regards,
ALCHEM, INC
Randall F. Andrews,
Plant Manager
ams

- i
EXHIBIT
............ .. L
......................................................................FRX NO.
. ...................:. Mar. �
FF ALCHEMI INC. - . ates aced QCtu n
SManu
8135 Red Road
CurUo _ ce Ro,kweU. NC 28138
2042 Buie pht4,delphus Ram 7c1. 704-279.7908 — 800.4G2.2586
pout 704-279 8418
Red springs, NC 28377
Tal, 910-843•2121 •- 800-52?•-•2944 pdrye dte1.net
Fc+x 910-843.5789
to ukemr.�
February 19, 2007
Mr. Andrew Pitner
Environmental Regional Supervisor
NCDENR
610 East Center St., Suite 301
Mooresville, NC 28115
Dear Mr. Ptixter;
I would like tootddress some -of the problems that we discussed in our meeting with Ms.
Peggy Finley. We
e 14vcr•
rtly
1 • The pYi of the lagoons werof the way. We should start to neutralize or out ral 2e the
should have the damaged react
tiny bit of free acid contained in the sandthe down
' 2. We are looking at the problem tha�y1e on iou indicated
by htelend of the week. I will l;o
at we have- wi
slope monitoring well. I will have
the analytical results. If them -is a definite need I
back and do. some research on
will do another sample for the well. spoke with Wayne Drye
3_ The lagoon with a water level too close to the top. I
ened as I was not there. The real
about this -again. Ican not say whatm the la oohs and they need to be at least
problem is that there is too much sand g
partialemptied. I have looked at the BOYLE report again• It
several' other
pob of packing down the sand. It gi
should have done a better j
to Inc et
we cannot
suggestions. It does not indicate hoe to diout rthe sand until til latelernhtin November.
solve. We did not get our track g
placesand and
We also have our packer at Rockwell act on We plan to get a co Pany such as
"thin lifts' that will suit for the
comp problem at all with this. We
SandMB to work with us on this. I really see no
put any
really need more sand at the area
of the sande w will liamixed with Lime.. I do not Plan
We test
sand on the west side of the what I can do to satisfy you that placing some of.
each load. Again, Y am asking
the sand on our build area will not cause any problem environmental or otherwise.
I believe from the letters I receive from you that you do not feel that we really
plan to build. Alchem is not using the sand fill area as a dumping ground. Our
objective is to use the sand beneficially.
Best regards,.
� C
Aandan F. Andrews,
Plant Manager
• ams

EXHIBIT
d
D
a� 1
FILED
STATE OF NORTH CAROLINA
COUNTY OF ROBESON 10;11 NOV 2 l P 4: 15 -
OFFICE OF
ALCHEM,INC.,
- - :`..,•,fit`;;i�
Petitioner, )
V. )
NORTH CAROLINA DEPARTMENT OF )
ENV iELONMEN AND NATURAL • )
RESOURCES, DIVISION OF WATER )
QUALITY, )
Respondent. )
i
i
IN mE OFFICE OF
ADMINISTRATIVE HEARINGS
07 BUR 0439
07 EHR 0177
SETTLEMENT AGREEMENT AND
WITHDRAWAL -OF PETITION
The North CarolinaTi artment of Environincat and Natural Resource (hereinafter
`Respondent) and Petitioner, Aachem, Inc., (hereinafter`Petitione!), hereby enter into this
Settlement Agreement (hereinafter"Agreement) in order to amicably resolve matters in '
controversy as they relate to a civil penalty assessment and permit requirements. This matter
arose out of dh-assessmcnt of civil penalties and costs totaling ten thousand-sixhundred
aeventy-seven dollars and sixty-one cents ($10, 677.61) which includes six hundred seventy-
seven dollars and sixty-one cents (5677.61) in enforcement costs, imposed upon Petitioner on
February 20, 2007 for alleged violations of North Carolina General Statutes § 143-215.1 et seq
and Nora-Disobargo Permit WQ00.16338. This settlement Agreement also addresses and covers
challenges to Alchem permit WQ0002702.
With¢ut any hearing of fact or law in the above -styled matters, Respondent and the
Petitioner have reached the following settlement agreement in this matter:

r
1. Petitioner will adhere to the following conditions:
thin-::30;:.days of the execution of this Agreement, Petitioner will
immediately create two (2) feet of freeboard space in all storage lagoons.
�- Additional bauxite residuals must be disposed of in a manner consistent .
with Water Quality General Statutes and the relevant rules promulgated
thereunder or applicable Solid Waste Statutes and the relevant Hiles
pmmirtgafed thereunder ' fit is anticipated' Thai the bauxite in' the first
lagoon will be disposed of off site •and the residuals from other lagoons
can be disposed of on site after cleaning and in accordance with the terms
of this agreement);
b. Petitioner will refrain from placing any bauxite rest' als.for fill in the
berm arcs until construction and repairs to the berm and stormwater
retention pond below that area are complete;
.-C. Petitioner will complete construction and repairs to berm and stormwater
retention pond on or before October 30, 2007, with'site work monitored by
a licensed professional engineer to ensure proper construction and with
notification to Mooresville Regional Office of DWQ upon completion;
d. Petitioner shall inspect and repair all three storage lagoons on site by June-�
1" 2008 with site work monitored, tested and certified by.a licensed
professional engineer to ensure proper construction. In order to meet this
requirement. the Petitioner will be allowed to set up a temporary mixer on
site for the purpose of combining the residuals with a chemical agent that
-2-

i
will bring them into compliance with appropriate pH levels, which will be
removed once the storage lagoons have been rcpaired and the Respondent
has determined that the residuals are leaving the wash system and reaching
the storage lagoons and berm areas at the appropriate pH levels;
e. On or before March 1, 2008, the Petitioner will submit to the Mooresville
Regional Office of DWQ a site assessment prepared by a licensed
professional engineer. The site assessment should include a site map, a
land survey that delineates current fill and set backs from residential and
cornmcrcial properties, operational plan. including projected estimate of
site life;
V
f. On or beferc_Ititie`l: QQ8, the Petitioner will install sarnplingports in the
pipes bctwecn the wash system and the storage lagoons. Additionally,
Petitioner will provide sampling data to the Mooresville Regional Offrcc
of DWQ that the bauxite residuals being transferred from the wash system
'to the mixer and/or storage lagoons and eventually to the berm fill area,
have achieved the prescribed pH level; and
g. Petitioner may seek a pcunit modification to address condition 11(5)(a)
(400-foot buffer zone) after a concurrent site inspection with DWQ staff
and a licensed professional engineer retained by Petitioner.
2. Petitioner shall pay Respondent. nine thousand dollars (59,000.00), (hereinafter
'Settlement Amount), which includes eight thousand three hundred twenty-two dollars and thirty-
nine cents ($8,322.39) for the civil penalty and six hundred seveaty-sevcn dollars and sixty-one
-3-
r3

cents ($677.61) for investigative costs. The Settlement Amount shall be made in nitre (9) equal
payments of one thousand dollars ($1,000.00) due on the 1st day of every month. The first
payment will be due within thirty (30) days ofthe execution of this Agreement.
3. The payments shall be by check made payable to the`North Carolina Department
of Environment and Natural Resourced'or to`I)ENR'at the following address: .
Stormie D. Forte, Esq.
Attorney General's Office
Environmental Division
9001 Mail Service Center
Raleigh, NC27699-9001
The'breaeh of any condition of Paragraphs one (1), or two (2) by Petitioner will -
render due and payable the entire amount of the civil penalty assessment, including investigative
costs i.e., ten thousand six hundred seventy-seven dollars and sixty=one cents ( 10, 677.61). Any
payments made by Petitioner prior to any breach, will be subtracted from th6 original amount of
the civil penalty assessment for purposes of collection.
5. :Petitioner and Respondent expressly stipulate and acknowledge that, by entering
into this Agreement, Petitioner neither admits nor denies the allegations contained in the
Inspection Reports, Notices of Violation, Notices of Additional and/or Continuing Violations,
Findings and Decisions or Assessment of Civil Penalties. However, upon a breach of paragraph
one (1) or two (2) of this Agreement, by Petitioner, the sole issue in any action by Respondent is
to collect the Entire amount of the civil penalty assessment including investigative costs i.e., ten
thousand six hundred seventy-seven dollars and sixty-one cents ($10, 677.61) in accordance with
the terms of paragraph four (4) above and will be limited to the Petitioncfs compliance with the
terms of this Agreement. Additionally, for the proposes of future violations of the Water Quality
-4-
Ij

It
I
I]
WITHDRAWAL OF PETITION
11. Entry of this Agreement serves as Petitioner's Withdrawal of its Petition, for
Contested Case Hearing Without Prejudice in these matters. The parties agree this matter is
concluded and that no further proceedings are needed or required to resolve the contested case.
FOR THE DIVISION OF WATER
QUALITY:
Andrew Pitner, Mooresville
Regional Supervisor, DWQ
Date
APPROVED AS TO FORM:
ROY COOPER
Attorney.General
Stormie D. Forte
Assistant Attomey General
N. C. Departrnent'df Justice
Environmental Division
9001 Mail Service Center
Raleigh NC 27699-9001
AL CHEM, INC.:
Randall F. Andrews
Alchem, Inc.
Date:
THE YARBOROUGH LAW FIRM
Attorneys at Latin
DI7i f
By:+S
H. Addison Winters
Attorney at Law
-P. 0 Drawer 705
Fayetteville NC 28302
M

Alchern —Telephone Notes, Illegal Disposal
Feb. 8, 2008 . Received by Peggy Finley at 3:15pm
Caller - Jason Williams cell 980/621-1651 home 704/857-1136
Mr. Williams was approached by an employee of Alchem (truck driver) about using Alchem
residuals as fill in a ravine on Mr. Williams' property. He was told that it was free and was
provided with a laboratory sheet that actually appeared to be for QA/QC. Mr. Williams called
us to inquire as to the wisdom of accepting this material. Peggy pointed out that the lab
sheet did not appear to provide information that would be useful in making that decision. In
addition, there was no guarantee that a laboratory report represented the materials that
would actually be brought to his property.

It Lo
O
DaXe
APPLICATION FOR
CLOSED SYSTEM PERMIT
ALCHEM, INC.
8135 RED ROAD
ROCKWELL, NORTH CAROLINA 28138
November 13, 1989
By: William E. Bright, P.G.
Environmental Hydrogeological Consultants, Inc.
P.O. Box 2622
Lumberton, North Carolina 28358
This application for a closed
system permit reviewed by:
e/l�u rpo
�•.=Q�ESSIp�•.9 '� .
AIR
sEA15
15 472 jl�P
- noses 91111 I N 0 0�a,
EHC
CARS
a
i/ •4a1-rodwa
Yt-
LEAKING BURIED TANKS • LEAKING STORAGE LAGOONS • CONTAMINATED GROUNDWATER RECOVERY
CHEMICALSPILLS 9 LAND APPLICATION OF SLUDGE • LANDFILLS 9 PERMITS

TABLE OF CONTENTS
Page
1.0 Location ............................................. 1
2.0 Introduction ......................................... 1
3.0 Chemical Analysis of Sand Slurry ..................... 1
4.0 Sand Slurry Production ............................... 1
5.0 Capacity of Lagoons .................................. 2
6.0 Treatment Process System ............................. 2
7.0 Hydrogeologic Description of the Subsurface .......... 2
7.1 Changes in Lithology ............................ 2
7.2 Vertical Permeability of Lagoon Bottoms ......... 3
7.3 Hydraulic Conductivity of the Saturated Zone .... 3
7.4 Depth to Mean Seasonal High Water Table 3
7.5 Depth of Bedrock ................................ 4
8.0 Groundwater Monitoring ............................... 4
9.0 Area Wells ........................................... 4
10.0 Conclusion ........................................... 4
1. Location Map
2. Site Map
3. Process System Schematic
4. Lagoon Views
Sand Slurry Analysis
Coefficient of Permeability
EHC
LEAKING BURIED TANKS • LEAKING STORAGE LAGOONS • CONTAMINATED GROUNDWATER RECOVERY
CHEMICAL SPILLS • LAND APPLICATION OF SLUDGE • LANDFILLS • PERMITS

1
1.0 LOCATION
Alchem, Inc., 8135 Red Road, Rockwell, Rowan County, North Carolina
28138, is located along the Southern Railroad track approximately 1.5
miles northwest of Rockwell (Figure 1).
2.0 INTRODUCTION
Predicated on being properly permitted, Alchem, Inc., will process
bauxite (mixture of aluminum hydroxides) in an effort to increase product-
ion of aluminum sulfate (used in water treatment) to meet growing industrial
demands.
The sand slurry, containing dirt and a small amount of aluminum hydrate,
that is generated during such production will be pumped to existing dual
lagoons from which the liquid portion will be returned to a 6,000 gallons
processing water tank. In addition to not being hazardous, the sand slurry
is considered inert and innocuous.
The production of the aluminum sulfate will occur in a closed system
with no discharge to the waters of the state.
3.0 CHEMICAL ANALYSIS OF THE SAND SLURRY
An analysis of the sulfuric acid insoluble material (sand slurry)
from bauxite dated February 23, 1989, and of the liquid fraction dated
November 6, 1989, are attached. The analyses indicates that the leachate
parameters are all within acceptable levels, if present at all.
4.0 SAND SLURRY PRODUCTION
Approximately 700 tons of bauxite per month will be processed, at
this facility, from which approximately 300 tons per month of sand slurry
will be produced.
I EHC
LEAKING BURIED TANKS • LEAKING STORAGE LAGOONS • CONTAMINATED GROUNDWATER RECOVERY
CHEMICAL SPILLS • LAND APPLICATION OF SLUDGE a LANDFILLS • PERMITS

2
5.0 CAPACITY OF LAGOONS
The total approximate capacity of the 2 lagoons, each approximately
50' W x 200' L x 10' D, is 4,938 tons, or sufficient capacity to receive
and store the sand slurry for about 15 months (Figure 4).
6.0 TREATMENT PROCESS SYSTEM
The raw material consisting exclusively of bauxite will be reacted
with sulfuric acid and water in a reaction vessel. After reaction
completion, the material will be pumped to a fiberglass settling tank from
which the liquid (aluminum sulfate) will be pumped to storage tank(s) and
the s'e ea_:1�e insoluble ma;'t:erial_y(m�o-s;t`lly sa_nc�y mate ialiSiO _) _will b_e_
washed,,unt�l"the pf3 of t'he material elev_ate.s—to_a.=minmum of _aboyut,4_"f0��
The pH of the material will be'determined by using a Fisher Digital PH
meter on a daily basis.
The wash water will also be returned to storage or process water
tanks and the sand slurry and other minor insolubles will be released to
dual lagoons. When and as often as necessary, the liquid in the lagoons
will be returned to the.process water tank(s); thereby completing the closed
system (Figure 3).
7.0 HYDROGEOLOGIC DESCRIPTION OF THE SUBSURFACE
7.1 CHANGES IN LITHOLOGY
A total of 6 holes were power augered at this site using an Olathe
160 Series combination auger/rotary drill (Figure 2). These holes ranged
in depth from about 28'-30' and none encountered the water table.
The material underlying this site to bedrock is typical multiple
EHC
LEAKING BURIED TANKS • LEAKING STORAGE LAGOONS • CONTAMINATED GROUNDWATER RECOVERY
CHEMICALSPILLS • LAND APPLICATION OF SLUDGE • LANDFILLS • PERMITS

3
colored (red-brown-yellow-or,�_ftge) saproli'te. 'The saprolite is -composed
. l
mainly of silty, micaceous clay -like material. With perhaps some minor
variations, mainly color, there.are no .significant lithologic differences
to bedrock.
This material, -although somewhat easy to auger; especially the mica-
ceous silty streaks, is nevertheless considered very impermeable and not
very suitable for obtaining even domestic water supplies.
7.2 VER`I'IOAL PERMEABILITY OF LAGOON BOTTOMS
Because the.material underlying the site is�very similar, all over,
the vertical permeability should also be similar. Therefore, based on
laboratory results the permeability of the lagoon bottoms and presumably
the entire site is very low but desirable, in this case, ranging from about
{
2.6 x--1"0-7 - 1.r0 x. 10 .7 with -an average permeability of about -1.8 x'1.0-7 = p
Cm/Sec. Based on this value and the fact that the sand slurry is consider-
ed innocuous, the lagoons should be very suitable for their intended
purpose.
7.3 HYDRAULIC CONDUCTIVITY OF THE SATURATED ZONE
If a saturated zone is present underlying this site, it is more than
about 30 feet below land surface as no water was encountered in any of
the 6 somewhat deep auger holes.
7.4 DEPTH TO MEAN SEASONAL HIGH WATER TABLE
The depth to the mean seasonal high water table, at this site, is
more than 30 feet below land surface. There are currently 2 water'supply
wells located at this site. One of the wells (#1) is about 360 feet deep,
1
EHC
LEAKING BURIED TANKS • LEAKING STORAGE LAGOONS • CONTAMINATED GROUNDWATER RECOVERY
CHEMICAL SPILLS • LAND APPLICATION OF SLUDGE 9 LANDFILLS • PERMITS

4
and the other (#2) is reported to be about 28Q feet deep. In well #1,
the water level was reported to be about 60 feet and well #2 about 50 feet
below land surface. '
7.5 DEPTH TO BEDROCK
Based on the 2 on -site water supply wells, the depth to bedrock was
reported to be about 50-60 feet below land surface or approximately 50
i
feet below the bottom of the lagoons.
8.0 GROUNDWATER -MONITORING
Because there does not appear to be any relatively shallow water
(15'-201) underlying the site the construction of monitor wells would not
only seem perhaps impractical but unnecessary.
In lieu of constructing such wells the existing supply wells, on site,
which would equate to monitor wells, if any are required, could be monitored
as often as deemed necessary.
9.0 AREA WELLS
The area where this facility is located is somewhat sparsely populated
with only one (1) dwelling on the westside and it is about 400 feet away.
On.the eastside and at least 350-400 feet away, there are several homes,
one served by an individual well, and the other homes by a "community well"
which is located at least 450-500 feet away from the facility. There are
no wells located nearby, either to the north or south of the facility.
10.0 CONCLUSIONS
1) The production of aluminum sulfate from bauxite, at this site,
will occur in a closed system.
I -EHC
LEAKING BURIED TANKS • LEAKING STORAGE LAGOONS • CONTAMINATED GROUNDWATER RECOVERY
CHEMICAL SPILLS • LAND APPLICATION OF SLUDGE • LANDFILLS • PERMITS

A
k
2) The aluminum sulfate will be distributed for use in water
treatment:
3) The sand slurry generated, at this site, from the production
of bauxite is considered both inert and innocuous.
4) The permeability of the lagoon bottoms meet established
criteria.
5) The water table underlying this site is reported to be in the
range of 40-45 feet below land surface.
6) The nearest off -site water supply well is located approximately
400 feet to the east.
7) Any water that will collect in the lagoops will be recycled.
8) American Cyanamid, located in Plymouth, North Carolina, is
currently utilizing this process.
9) This facility is located in a sparsely populated area.
10) A pump with a ten horsepower motor will pump sand slurry from
the settling tank to the settling pond.
11) A pump with a twenty horsepower
pond liquid to the process water
LEAKING BURIED TANKS • LEAKING STORAGE LAGOONS • CONTAMINATED GROUNDWATER RECOVERY
CHEMICAL SPILLS 0 LAND APPLICATION OF SLUDGE . LANDFILLS • PERMITS

•
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SCALE: DATE: rl TITLE: Figure 1.
�`ay 18, 1989
1- 24000 ENVIRONMENTAL HYDROGROLOGICAL CONSULTANTS
JOB. No. Location Map
HYDROLOGY • GEOLOGY • EXPLORATION • ANALYTICAL

N
JINEAREST DOMESTIC WEU_ IS.
APPROXIMATLY 400 FEET FROM
THE LAGOONS.IN THE DIRECTION
OF THE ARROW.
2500, 4— — — PROPERTY LINT- — —
LAGOON
6 CLAY PARTITION
LAGOON
SECONDARY 19 17 I
CONTAINMENT I 1I f ® 2 I
. to
3
EMERGENCY O
5 SUMP. 2SO00 GAL.I..ONS
& I
— — —► 200'
KEY
® = AUGER HOLE
® = SUPPLY WELL
O= TANK,
O 0
ALCHEM
OFFICE 5O
V
0
FIGURE 2 ® 4
PROPERTY LINE 5=Steel, F=Fiberglass,
D/W P-Polypropylene
SOlifh�tiJ RAILROAD
RED ROAD
DATE: TITLE:
SCALE: 1" 135 ALCHEM, INC.
(Approx.) ENVIRONMENTAL HYDROGROLOGICAL CONSULTANTS 8135 Red Road
JOB.NO. Rockwell, NC
HYDROLOGY GEOLOGY • EXPLORATION ANALYTICAL
Tank
No.
Cap.
Cal$.
Conts.
Tank
Mat.
1
4„500
Sulfuric
Acid
S
2
4,500
„11+,
S
3
12,000
oolu5n.
F*
4
7,000
eactor•
F
5
10,000
Re ctor
F
6
4,000
Water
tora e
F
7
41000
„ „
P
8
4,000
9
10,000
Alum
10
i4,000
Water
Storage
`'
11
4,500
-Alum
P _
12
10,000
++
F
i3
10,000
,.,:
F .
14
4,500
++
P
15
6,000
P ocess
Water
P
16
1-0,000
Alum
F
17
10,000
++
F
18
5,0 00
P
19
5,000
++
P
20
4,500
++
P
21
5,000
++
P
22
0 000
Cool
Down
F
t

LAGOON
2
CLAY PARTITION _rdp A
3 LAGOON
KEY
= SUPPLY %Ka.L. ---- 4" PVC
0 = PUMP — — - 2" PVC
O = TANK
PUMP NO.
MATERIAL
TYPE
H/P
1
S.S.-316
CENTRIF.
5.0
2
S.S.-316
CENTRIF.
25
3
S.S.-316
CENTRIF.
25
4
POLYPROPYLENE
SELF PRI,
5.0
VALVE
�
®
r
7
THE SCHEMATIC SHOWS THAT SULFURIC ACID REACTS
4
WITH BAUXITE AND WATER IN THE REACTORS FROM
WHICH THE WATER IS PUMPED TO LAGOONS AND THEM
I
10 - - - -
- - - - - -
v
5
TO APROCESS WATER TANK PRIOR TO RETIRING TO
THE REACTOR VESSEL..
9
--
WATER FROM BOTH OF THE ON SITE SUPPLY WELLS
IS PUMPED TO WATER STORAGE TANKS, THEN TO
— —
_-�
3
THE REACTORS.
1 2
THE LIQUID ALUMINUM SULFATE IN THE REACTORS
IS PUMPED TO A COOL DOWN TANK AND THEN TO
ALUM STORAGE TANKS.
FTGURE03
SCALE: NTS DATE: E H C TITLE:
ENVIRONMENTAL HYDROGROLOGICAL CONSULTANTS ALCHEM, INC.
JOB. NO., 8135 Red Road
HYDROLOGY • GEOLOGY • EXPLORATION • ANALYTICAL Rockwell, NC

..LAGOON
I
Cl-AY, PARTI TTON 1', 0 •
l
a' A
LAGOON t
200'
-APLAN , I E4J
"SECTI CAN • A -'A
EHC :5Ec�aIUN 0-�
SCALE:. In = 67 1 DATE: TITLE:
(Approx.)- ENVIRONMENTAL HYDROGEOLOGICAL CONSULTANTS -ALCHEM, INC.
JOB. NO. -8I35 Red Road
HYDROLOGY GEOLOGY EXPLORATION • ANALYTICAL Rockwell, NC

. Analytical and Consulting Chemists
DATE RECEIVED 10-31-89 1316 South Fifth Street
DATE REPORTED 11-6-89 Wilmington, N.C. 28401
89WS650 [phone]
PAGE 1 OF 1
INDUSTRIAL AGRI CHEMICALS
RT.2 BOX 521-C
RED SPRINGS , N.C. 28377
ATTENTION: RANDALL ANDREWS
SAMPLE DESCRIPTION: LIQUID FlzACTION
1. LIQUID .FRACTION .
RESULTS
1
:;Aluminum as Al % .001
:,.Sulfate Gravimetric , as SO4 PPM 103
ROGER C. OXFORD CHEMIST
NOTE: The pH of the liquid fraction was determined to be 2.5 by Mr. Randall
Andrews in his company -owned laboratory.

'ord Laboratories, Inc..
14DUSTRIAL AGRI'CHEMICALS
T.2 :BOX':521-C
ED SPRINGS ,.N.C..28377
y
nTTENTION :"'�, RANDALL ANDREWS
Analytical and Consulting unemists
DATE RECEIVED 2-8-89 1316 South Fifth Street
DATE REPORTED 2-23-89 Wilmington, N.C. 28401
8 9W4 6 6 6 [phone]
PAGE 1 OF 1
P.O. #
5AMPLE. DESCRIPTIONSU_LFURIC,, ACID INSOLUBLE MATERIAL
SULFURIC ACID .INSOLUBLE MATERIAL FROM BAUXITE
RESULTS
7CS G
d
f.
rePachate
r.senic , as As ,
PPM
it ium , as Ba ,
PPM
admium `, as Cd ,
PPM
ead, ►; as Pb , PPM
i`romium , ' as Cr
, PPM
,er.cury. , as Hg ,
PPM
el.eniumw, as Se
, PPM
ilver'. , as Ag ,
PPM.
nitial PH.
< . 0 0 5
.400
<.010
<.010
<.010
<.0005
<.005.
<.005
8.0
ROGE C.
R COXF R CHEMIST
,

i
-
Godwin. - Jordan & Associates, P.A.
ENGINEERING. SURVEYING & PLANNING
IOX WEiT BROAD ISTR[ET
. I
Jo[ E. GODWIN. 9R. P.E. R.LJ'
RONNIE K. JORDAN. R.L.8.
P. O. BOX 149 i
PHONES: FAY. 41113 4E9
DU,NN. N. C. IIE034 DUNN a91-5159
JAME• K. GODWIN
MATERIALS TESTING DIVISION
REPORT OFI Coefficient
of Permeability (Fall Head Method)
MADE FOR I Bill Bright
PItOJECTI Rockwell, NC
I
K = -2.3 KT 1og10 -p
November 9, 1P89
K = Coefficient of Permeability,
CM/sec
A = Cross sectional area
of permeameter, CM
L = Length of Specimen,
CM
a - Cross sectional area
of standpipe, CM
T = Time of• test, sec
Ho= Head.at start of test, CM
Ii = Head at end of test,
CM
Q © Discharge, CC
'e s t # H— H T n A T. 1`
T.
1
32.07
26.35
691,200
2.69
.47
7.15
8.71
0.00000QI09
2
32.07
28.25
187,200
1.80
.47.•
7.15
8.'71
0.000000261
K required =
Test Locations:
Test 1 and 2 Sample furnished by Bill Bright
• I
NOTES I Above tests represent spot checks only
Testing 'Technician: Joseph E. Johnson
I•
• i

10ver25 Years Experience"
Environmental Hydrogeological Consultants
...... ... .
..
Box 2622
- LUMBERTON, N. C. 28359
1
-"' August 24 1989
-..
Mr. William Barlow
Permits & Engineering Unit
NCEHNR-DEM
P.O.- Box -27687
_-Raleigh, North Carolina 27611-7687
Subject:' WQ0001987
Alchem, Inc.
Industrial Recycle
Rowan County
Dear Sir :
Reference is made to your letter subject as above, dated July 31, 1989,
and addressed to Mr. Randall F. Andrews.
The-following-prismoidal formula was used to determine the approximate
storage capacity of -the lagoon(s):
:... V (A+4B+C) xp
_ 6
V = Volume of lagoon in cubic feet .
A = Area of the lagoon at the ground surface
_- ....._ ...__ „in square feet- :.
B. = Area of the oxcavation at the middepth point
(1/2:-D) in square feet
C. Area of the excavation at the bottom of the
lagoon in square feet
D = Average depth -of the sand slurry
:-: 6 = Constant
V - .(50) (200)+4(42) (192)+(34) (184) +, g
6
V 10000 + 32256 + 6256 + 8,
: 6
: V - (64682.67) (90 lbs/cu ft)
2000
V - 2910.72 tons`(1/2 total capacity)'
V 5821.44 tons.
LEAKINGAURIED TANKS • LEAKING STORAGE LAGOONS • CONTAMINATED GROUNDWATER RECOVERY
CHEMICAL SPILLS • LAND APPLICATION OF SLUDGE LANDFILLS PERMITS

- Mr. William Barlow
August - 22, . 19.89
Page -2 -
:-NOTE:- Based on producing approximately 300 tons
of sand slurry per month, the lagoon(s)
can -receive and store approximately
5,8.21 tons.
'Your questions concerning the storage and use of sulfuric acid, at
this -facility, were according to those Mr: Andrews answered when he met with
you in your office on or about July 25, 1989.
.-If youneed additional information or clarification, please advise.
Sincerely, .
.
William E. Bright, P.G.. _
Hydrogeologist
Project.Manager
WEB/onb
This letter and the application
.I.!. for closed system permit, dated May-18, 1989,
reviewed by:\`1111/1 •
R f 4 date q�.We' /
I . ciissinx.e. �'. T
A
(See attacAed SmmjM .) i
154.72 s�
.. L r
M p
LLB.
EHC
LEAKING BURIED TANKS LEAKING STORAGE LAGOONS • CONTAMINATED GROUNDWATER RECOVERY
CHEMICAL SPILLS LAND APPLICATION OF SLUDGE LANDFILLS PERMITS