WQ0002702_Regional Office Historical File Pre 2018 (14)

-Agn,
NCDENR
North Carolina Departmentof Environment and Natural Resources
Division of Water Quality
Pat McCrory Charles Wakild, P. E. John E. Skvarla, III
Governor Director Secretary
January 22, 2013
Mr. Randall F. Andrews
Alchem Inc. JAN 2 4 2011)
8135 Red Road
Rockwell, NC 28138 t
Subject: Notice of Deficiencies NOD-2013-PC-0054
Alchem Incorporated
Permit Number WQ0016338
Surface Disposal of Residual Solids Permit
Rowan County
Dear Mr. Andrews:
As of this date, our records indicate that the above -referenced permit, which was issued on August 24,
2011 and expires on November 30, 2015, has overdue fees. It is a condition of your permit to pay the
annual administering and compliance fee within thirty (30) days of being billed by the Division of Water
Quality (Division).
Failure to pay the fee accordingly may result in the Division initiating enforcement actions, to include the
assessment of civil penalties. Civil penalty assessments may be issued of not more that twenty-five
thousand ($25,000) dollars against any "person' who violates or fails to act in accordance with the terms,
conditions, or requirements of a permit under authority of G.S. 143-215.6A.
Therefore, it is imperdtive that you submit the appropriate fee as requested within thirty (30) days of the
receipt of this notice. According to our records, the following invoice(s) are outstanding:
Invoice Number
Invoice Date
Due Date
Outstanding Fee
2012PR001551
February 7, 2012
March 8, 2012
$1,310.00
AQUIFER PROTECTION SECTION
1636 Mail Service Center, Raleigh, North Carolina 27699-1636
Location: 512 N. Salisbury St Raleigh, North Carolina 27604
Phone: [phone] \ FAX: [phone]FAX: 91 M07-6496
Internet: www.nmateroualitv.om
An Equal Opportunity \ Affirmative Action Employer
...one :: :: .
NorthCarohn'd
. Natlwlibl

Mr. Randall F. Andrews
January 22, 2013
Page 2 of 2
Please remit payment made payable to the North Carolina Department of Environment and Natural
Resources in the amount of $1,310.00. Please mail this payment to:
Division of Water Quality
Budget Office
Attn: Fran McPherson
1617 Mail Service Center
Raleigh, NC 27699-1617
For questions _regarding any overdue annual fees, please contact Fran McPherson with the Division's
Budget Office -at [phone]. If you have any other, questions, please contact Ed Hardee by phone at
[phone] or by email at [e-mail].
Sincerely,
Jon Risgaard, Supervisor
Land Application Unit
cc: Nioore8v W Regional Office — APS
APS Central Files-- Perihit-N6.VQ0016338
Fran McPherson — DWQ Budget Office

MCDENR
North Carolina Department of Environment and Natural Resources
Divisi n f W t Q I't
Beverly Eaves Perdue
Governor
Mr. Randall Andrews
Alchem, Inc.
8135 Red Road
Rockwell, NC 28138
Dear Mr. Andrews:
0 o aer ualY
Coleen H. Sullins
Director
August 24, 2011
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Subject: P``ermit¢loWQ063� t,
Alchem; Inc: -_ -
Surface Disposal of Bauxite
Residuals Monofill
Rowan County
In accordance with your permit minor modification request received April 15, 2011, we are
forwarding herewith Permit No. WQ0016338, dated August 24, 2011, to Alchem, Inc. for the operation of
the subject residuals management program.
Modifications to the subject permit are as follows:
Attachment A, sampling requirements of bauxite material are suspended. Note that addition
of Bauxite material to the permitted surface disposal units is prohibited.
• Condition I.1., within 30 days of permit issuance, documentation regarding current site
activity (i.e. what material is being produced, etc.) shall be submitted to the Division.
Condition I.2., regarding the requirement for closure plan and post -closure management care
program submission.
Condition I.3., upon completion of the clean out and closure of the lagoons, a certification
shall be submitted from a licensed North Carolina Professional Engineer certifying that the
lagoons have been properly closed in accordance with the approved closure plan.
o Condition VI.7., the Permittee shall maintain this permit until all permitted facilities herein are
properly closed or permitted under another permit issued by the appropriate permitting
authority pursuant to 15A NCAC 02T .01050).
• Please note that a related wastewater recycle permit (WQ0002702) is affected by the shutdown
of the alum production. The Permittee shall submit a permit modification or rescission request
to address future plans of the recycle system.
AQUIFER PROTECTION SECTION
1636 Mail Service Center, Raleigh, North Carolina 27699-1636
Location: 2728 Capital Boulevard, Raleigh, North Carolina 27604
Phone: [phone] \ FA: 1: 919-7 15-0588: FAX 2: 919-715-6048 \ Customer Service: 1-877-623-6748
internee htto:/iooral.ncdenr.oranvebilNalaos
Art Equal Opponuniw'i ATirm6iive Acton Employer
N o-rd-1 Cal-oiinc
IVA7a ` 1 u

Mr. Andrews
August 24, 2011
Page 2 of 2
On August 5, 2009, Session Law 2009-406 and 2010-177, was enacted by the General
Assembly and signed into law. The Act extends the expiration date of certain government
approvals and permits. Non -discharge permit, WQ0016338, issued by the Division of Water Quality
falls within the scope of this Act and is therefore being extended until November 30, 2015. Please
note per your permit, a renewal application must still be submitted six months in advance of the
extended expiration date.
This permit shall be effective from the date of issuance until November 30, 2015, shall void
i. "PermitM&.! WQ001'6.338 issued December 28, 2006, and shall be subject to the conditions and limitations
11
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as specified therein. Failure to;establish an adequate system for collecting and maintaining the required
i. op6rational information shall result in future compliance problems.
If any parts, requirements or limitations contained in this permit are unacceptable, the Permittee
has the right to request an adjudicatory hearing upon written request within 30 days following receipt of
this permit. This request shall be in the form of a written petition, conforming to Chapter 150B of the
North Carolina General Statutes, and filed with the Office of Administrative Hearings at 6714 Mail
Service Center, Raleigh, NC 27699-6714. Unless such demands are made, this permit shall be final and
binding.
If you need additional information concerning this matter, please contact Chonticha McDaniel at
[phone] or [e-mail].
Sincerely,
Coleen H. Sullins
cc: Rowan County Health Department
luooresvlle}Regi no al_ Office?Aqu°ferl?roteeticiriSeet no
Technical Assistance and Certification Unit
Permit File WQ0016338
Notebook File WQ0016338

NORTH CAROLINA
ENVIRONMENTAL MANAGEMENT COMMISSION
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RALEIGH
SURFACE DISPOSAL OF BAUXITE RESIDUAL SOLIDS PERMIT
In accordance with the provisions of Article 21 of Chapter 143, General Statutes of North Carolina as
amended, and other applicable Laws, Rules, and Regulations
PERMISSION IS HEREBY GRANTED TO
Alchcrn, Inc.
Rowan County
FOR THE
operation of a residuals management program for Alchem, Inc, and consisting of the surface disposal of
bauxite residuals generated by the approved facilities listed in Attachment A to the approved site located
at 8135 Red Road, Rockwell, North Carolina, with no discharge of wastes to surface waters, pursuant to
the application received April 15, 2011, and in conformity with the project plans, specifications, and other
supporting data subsequently filed and approved by the Department of Environment and Natural
Resources and considered a part of this permit. The useand disposal of residuals are regulated under Title
40 Code of Federal Regulations Part 257. This permit does not exempt the Permittee from complying
with the federal regulations.
This permit shall be effective from the date of issuance until November 30, 2015, shall void Permit No.
WQ0016338 issued December 28, 2006, and shall be subject to the following specified conditions and
limitations:
I. SCHEDULES
1. Within 30 days of permit issuance, documentation regarding current site activity (i.e. what material is
being produced, etc.) shall be submitted to the Division of Water Quality, Aquifer Protection Section,
1636 Mail Service Center, Raleigh, NC 27699-1636.
2. Within 90 days of permit issuance, the Permittee shall submit a formal closure plan and post -closure
management care program, an implementation schedule indicating a closure date to be no longer than
12 months from the permit issuance. The closure plan, at minimum, shall include the following:
a) Confirmation that the cap is installed, or will be installed over existing fill area,
b) Permittee's future plans for the land, and
c) Long-term groundwater monitoring program.
Submittals prepared in accordance with the United States Environmental Protection Agency's Office
of Research and Development document entitled "Process Design Manual: Surface Disposal of
Sewage Sludge and Domestic Septage (EPA/625/R-95/002)" are acceptable.
WQ0016338 Version 2.1 Shell Version 101116 Page 1 of 8

Note that the lagoon closure shall not allow any material to be buried in the fill area unless the
Permittee is able to demonstrate that the waste has been treated and disposed properly under the
requirements of this permit. Submit three copies of all information to the Division of Water Quality,
Aquifer Protection Section, 1636 Mail Service Center, Raleigh, NC 27699-1636.
3. Upon completion of the clean out and closure of the lagoons, a certification shall be submitted from a
licensed North Carolina Professional Engineer certifying that the lagoons have been properly closed
in accordance with the approved closure plan.
4. The Mooresville Regional Office, telephone number [phone], shall be notified within 48
hours after (excluding weekends and holidays) the closure of the surface disposal unit has been
completed such that an in -place inspection can be made. Notification to the Aquifer Protection
Section's regional supervisor shall be made from 8:00 a.m. until 5:00 p.m. on Monday through
Friday, excluding State Holidays.
No later than six months prior to the expiration of this permit, the Permittee shall request renewal of
this permit on official Division forms. Upon receipt of the request, the Division will review the
adequacy of the facilities described therein, and if warranted, will renew the permit for such period of
time and under such conditions and limitations as it may deem appropriate. Please note Rule 15A
NCAC 02T .0105(d) requires an updated site map to be submitted with the permit renewal
application.
d) PERFORMANCE STANDARDS
The subject residuals management program shall be effectively maintained and operated at all times
so there is no discharge to surface waters, nor any contravention of groundwater or surface water
standards. In the event the facilities fail to perform satisfactorily, including the creation of nuisance
conditions due to improper operation and maintenance, the Permittee shall immediately cease
disposal of residuals to the surface disposal unit, contact the Mooresville regional office's Aquifer
Protection Section supervisor, and take any immediate corrective actions.
2. This permit shall not relieve the Permittee of their responsibility for damages to groundwater or
surface water resulting from the operation of this residuals management program.
3. Only residuals generated by the facilities listed in Attachment A are approved for surface disposal in
accordance with this permit.
4. Pollutant concentrations in residuals for surface disposal shall not exceed the following Ceiling
Concentrations (dry weight basis):
Distance from Surface Disposal Unit
Boundary to Closest Property Line
(meters)
Ceiling Concentration
(nzillig rams per kilogram)
Arsenic
Chromium
Nickel
0 to < 25
30
200
210
25 to < 50
34
220
240
50 to < 75
39
260
270
75 to < 100
46
300
320
100 to < 125
53
360
390
125 and greater
62
450
420
Only residuals that are non -hazardous under the Resource Conservation and Recovery Act (RCRA)
shall be disposed in the surface disposal unit.
WQ0016338 Version 2.1 Shell Version 101116 Page 2 of 8

6. Setbacks for surface disposal units shall be as follows:
Setback Description
Setback
(feet)
Habitable residence or place of public assembly under, separate ownership or not to
400
be maintained as part of the project site
Property lines
50
Private or public water supply
100
Surface waters (streams — intermittent and perennial, perennial waterbodies, and
100
wetlands)
Interceptor drains or Surface water diversions (upslope)
10
Interceptor drains or Surface water diversions (downslope)
25
Groundwater lowering system and surface water drainage ditches
25
The compliance boundary residual land application sites shall be specified in accordance with 15A
NCAC 02L .0107(b). These sites were individually permitted on or after December 30, 1983;
therefore, the compliance boundary is established at either 250 feet from the residual land application
area, or 50 feet within the property boundary, whichever is closest to the residual land application
area. An exceedance of groundwater standards at or beyond the compliance boundary is subject to
remediation action according to 15A NCAC 02L .0106(d)(2) as well as enforcement actions in
accordance with North Carolina General Statute 143-215.6A through 143-215.6C. Any approved
relocation of the COMPLIANCE BOUNDARY will be noted in Attachment B.
8. In accordance with 15A NCAC 02L .0108, the review boundary shall be established midway between
the compliance boundary and the residual land application area. Any exceedance of groundwater
standards at the review boundary shall require action in accordance with 15A NCAC 02L .0106.
M. OPERATION AND MAINTENANCE REQUIREMENTS
1. The residuals management program shall be properly maintained and operated at all times. The
program shall be effectively maintained and operated as a non -discharge system to prevent any
contravention of surface water or groundwater standards.
Upon the Water Pollution Control System Operators Certification Commission's (WPCSOCC)
classification of the facility, the Permittee shall designate and employ a certified operator in
responsible charge (ORC) and one or more certified operators as back-up ORCs in accordance with
15A NCAC 08G .0201. The ORC or their back-up shall visit the facilities in accordance with 15A
NCAC 08G. 0204 and shall comply with all other conditions of 15A NCAC 08G. 0204. For more
information regarding classification and designation requirements, please contact the Division of
Water Quality's Technical Assistance & Certification Unit at [phone].
A copy of this permit shall be maintained at the surface disposal unit when residuals are being
disposed. The spill prevention and control plan shall be maintained in all residuals transport and
application vehicles.
4. Appropriate measures shall be taken to control public access to the surface disposal unit during active
use, and for the 36-month period following closure of the surface disposal unit. Such controls may
include fencing and the posting of signs indicating the activities conducted at each site.
5. Adequate provisions shall be taken to prevent surface runoff from any active surface disposal unit. If
runoff cannot be prevented, a collection system shall be installed with the capacity to handle runoff
from a 24-hour, 25-year storm event. All collected runoff shall be disposed in a Division approved
manner.
WQ0016338 Version 21 Shell Version 101116 Page 3 of 8

Adequate provisions shall be taken to prevent wind erosion from conveying residuals from the
surface disposal sites onto adjacent properties or into surface waters.
7. Food crops, feed crops and/or fiber crops shall not be grown on an active surface disposal unit, unless
approval has been requested and received from the Division.
8. No residuals shall be utilized for land reclamation within one foot of a seasonal high water table and
within three feet of a permanent water table.
9. No residuals shall be used as pipe bedding for sanitary sewer, storm sewer, or potable water lines.
10. The Permitee shall insure that the transportation of the residuals does not cause any adverse impact,
i.e. transport in a leak -proof truck for wet material, and ensure that trucks are covered for dry
material, or otherwise protected to prevent any adverse impact resulting from operation.
B7. , MONITORING AND REPORTING REQUIREMENTS
1. Any Division required monitoring (including groundwater, plant tissue, soil and surface water
analyses) necessary to ensure groundwater and surface water protection shall be established, and an
acceptable sample reporting schedule shall be followed.
2. Residuals shall be analyzed to demonstrate they are non -hazardous under the Resource Conservation
and Recovery Act (RCRA). The analyses [corrosivity, ignitability, reactivity, and toxicity
characteristic leaching procedure (TCLP)] shall be performed at the frequency specified in
Attachment A, and the Permittee shall maintain these results for a minimum of five years. Any
exceptions from the requirements in this condition shall be specified in Attachment A.
The TCLP analysis shall include the following parameters (the regulatory level in milligrams per liter
is in parentheses):
Arsenic. (5.0)
1,4-Dichlorobenzene (7.5)
Nitrobenzene (2.0)
Barium (100.0)
1,2-Dichloroethane (0.5)
Pentachlorophenol (100.0)
Benzene (0.5)
1, 1 -Dichloroethylene (0.7)
Pyridine (5.0)
Cadmium (1.0)
2,4-Dinitrotoluene (0.13)
Selenium (1.0)
Carbon tetrachloride (0.5)
Endrin (0.02)
Silver (5.0)
Chlordane (0.03)
Hexachlorobenzene (0.13)
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)
o-Cresol (200.0)
Lindane (0.4)
2,4,5-TP (Silvex) (1.0)
p-Cresol (200.0)
Mercury (0.2)
Vinyl chloride (0.2)
Cresol (200.0)
Methoxychlor (10.0)
2,4-D (10.0)
Methyl ethyl ketone (200.0)
WQ0016338 Version 2.1 Shell Version 101116 Page 4 of 8

An analysis shall be conducted at the frequency specified in Attachment A, and the Permittee shall
maintain the results for a minimum of five years. The analysis shall include the following
parameters:
Aluminum
Mercury
Chromium
Barium
Silver
Selenium
Arsenic
Nickel
Calcium
Cadmium
Manganese
Zinc
Copper
pH
Phosphorus
Lead
Magnesium
Sodium
4. Laboratory parameter analyses shall be performed on the residuals as they are disposed, and shall be
in accordance with the monitoring requirements in 15A NCAC 02B .0505.
5. The Permittee shall maintain records tracking all residual surface disposal events. At a minimum,
these records shall include the following:
a. Date and freeboard level measurements in the surface disposal unit;
b. Source and date or residuals disposed of in the surface disposal unit;
c. Volume of residuals disposed of in the surface disposal unit in gallons per year, dry tons per. 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).
6. Three copies of all required information, monitoring and reporting requirements as specified in
Conditions IV.2, IV.3, and IV. 5 shall be submitted annually on or before March 1 of the following
year to the following address:
Division of Water Quality
Information Processing Unit
1617 Mail Service Center
Raleigh, North Carolina 27699-1617
7. Noncompliance Notification
The Permittee shall report by telephone to the Mooresville Regional Office, telephone number (704)
663-1699, as soon as possible, but in no case more than 24 hours or on the next working day
following the occurrence or first knowledge of the occurrence of any of the following:
a. Any occurrence with the surface disposal program resulting in the land application of significant
amounts of wastes that are abnormal in quantity or characteristic.
b. Any failure of the surface disposal program resulting in a release of material to surface waters.
c. Any time self -monitoring indicates the facility has gone out of compliance with its permit
limitations.
d. Any process unit failure, due to known or unknown reasons, rendering the facility incapable of
adequate residual treatment.
e. Any spill or discharge from a vehicle or piping system during residuals transportation.
WQ0016338 Version 2.1 Shell Version 101116 Page 5 of 8

Any emergency requiring immediate reporting (e.g., discharges to surface waters, imminent failure of
a storage structure, etc.) outside normal business hours shall be reported to the Division's Emergency
Response personnel at telephone number [phone], [phone], or [phone].Persons
reporting such occurrences by telephone shall also file a written report in letter form within five days
following first knowledge of the occurrence. This report shall outline the actions taken or proposed to
be taken to ensure that the problem does not recur.
V. INSPECTIONS
Prior to each bulk residuals surface disposal event, the Permittee or his designee shall inspect the
residuals storage, transport and application facilities to prevent malfunctions, facility deterioration
and operator errors resulting in discharges, which may cause the release of wastes to the
environment, a threat to human health or a public nuisance. The Permittee shall maintain an
inspection log that includes, at a minimum, the date and time of inspection, observations made, and
any maintenance; repairs, or corrective actions taken. The Permittee shall maintain this inspection log
for a period of five years from the date of inspection, and this log shall be made available to the
Division upon request.
2. Any duly authorized Division representative may, upon presentation of credentials, enter and inspect
any property, premises or place on or related to the land application sites or facilities permitted herein
at any reasonable time for the purpose of determining compliance with this permit; may inspect or
copy any records required to be maintained under the terms and conditions of this permit; and may
collect groundwater, surface water or leachate samples.
VI. GENERAL CONDITIONS
1. Failure to comply with the conditions and limitations contained herein may subject the Permittee to
an enforcement action by the Division in accordance with North Carolina General Statutes 143-
215.6A to 143-215.6C.
2. This permit shall become voidable if the residuals land application events are not carried out in
accordance with the conditions of this permit.
This permit is effective only with respect to the nature and volume of residuals described in the
permit application and other supporting documentation.
4. The issuance of this permit does not exempt the Permittee from complying with any and all statutes,
rules, regulations, or ordinances, which may be imposed by other jurisdictional government agencies
(e.g., local, state, and federal). Of particular concern to the Division are applicable river buffer rules
in 15A NCAC 02B .0200; erosion and sedimentation control requirements in 15A NCAC Chapter 4
and under the Division's General Permit NCGO10000- any requirements pertaining to wetlands under
15A NCAC 02B .0200 and 02H .0500; and documentation of compliance with Article 21 Part 6 of
Chapter 143 of the General Statutes.
5. In the event the residuals program changes ownership or the Permittee changes their name, a formal
permit modification request shalfbe submitted to the Division. This request shall be made on official
Division forms, and shall include appropriate documentation from the parties involved and other
supporting documentation as necessary. The Permittee of record shall remain fully responsible for
maintaining and operating the residuals program permitted herein until a permit is issued to the new
owner.
6. The Permittee shall retain a set of Division approved plans and specifications for the life of the
facilities permitted herein.
WQ0016338 Version 2.1 Shell Version 101116 Page 6 of 8

The Permittee shall maintain this permit until all permitted facilities herein are properly closed or
permitted under another permit issued by the appropriate permitting authority pursuant to 15A NCAC
02T .01050).
This permit is subject to revocation or unilateral modification upon 60 days notice from the Division
Director, in whole or part for the requirements listed in 15A NCAC 02T .0110.
9. Unless the Division Director grants a variance, expansion of the permitted residuals program
contained herein shall not be granted if the Permittee exemplifies any of the criteria in 15A NCAC
02T .0120(b).
10. The Permittee shall pay the annual fee within 30 days after being billed by the Division. Failure to
pay the annual fee accordingly shall be cause for the Division to revoke this permit pursuant to 15A
NCAC 02T .0105(e)(3).
Permit issued this the 20' day of August 2011
NORTH CAROLINA ENVIRONMENTAL MANAGEMENT COMMISSION
C een ullins, Director
Division of Water Quality
By Authority of the Environmental Management Commission
Permit Number WQ0016338
WQ0016338 Version 2.1 Shell Version 101116 PaLye 7 of 8

ATTACHMENT A - Approved Residual Sources
Alchem Incorporated Residuals Reuse Program
Certification Date: August 24, 2011
Permit Number: WQ0016335 Version: 2.1
Owner
Facility Name
County
Perm
Number
Biological
Residuals
Maximumimumit
Dry Tons
Per Year
Monitoring Frequency for Non -hazardous
z
Characteristics
Monitoring Frequency for
3
Metals and Nutrients
Alchem, Inc.
Alclient, Inc. Leached Bauxite
Rowan
WQ0002702
No
0.00
N/A
N/A
Total
0.00
The alum production has been shut down; therefore, addition of bauxite material to the permitted disposal units is prohibited.
z Analyses to demonstrate that residuals are non -hazardous (i.e., TCLP, ignitability, reactivity, and corrosivity) as stipulated under permit Condition IV.2.
Testing of metals and nutrients as stipulated under permit Condition IV.3.
Page 1 of I

U `` F
u AQUIFER PROTECTION REGIONAL STAFF REPORT
Date: 06/14/2011 County: Rowan
To: Aquifer Protection Central Office Permittee: Randall Andrews
Central Office Reviewer: Chonticha McDaniel Project Name: ALCHEM
Regional Login No: Application No.: WQ0016338
I GENERAL INFORMATION
1. This application is (check all that apply): ❑ New ❑ Renewal
® Minor Modification ❑ Major Modification
❑ Surface Irrigation ❑ Reuse ❑ Recycle ❑ High Rate Infiltration ❑ Evaporation/Infiltration Lagoon
❑ Land Application'of Residuals ❑ Attachment B included ❑ 503 regulated ® 503 exempt
❑ Distribution of Residuals ❑ Surface Disposal
❑ Closed -loop Groundwater Remediation ❑ Other Injection Wells (including in situ remediation)
Was a site visit conducted in order to prepare this report? ❑ Yes or ❑ No.
a. Date of site visit: No site visit needed
b. Person contacted and contact information: N/A
c. Site visit conducted by:
d. Inspection Report Attached: ® Yes or ❑ No.
2. Is the following information entered into the BIMS record for this application correct?
® Yes or ❑ No. If no, please complete the following or indicate that it is correct on the current application.
For Treatment Facilities:
a. Location: 8135 Red Road, Rockwell, NC
b. Driving Directions:
c. USGS Quadrangle Map name and number:
d. Latitude: Longitude:
e. Regulated Activities / Type of Wastes (e.g., subdivision, food processing, municipal wastewater):
Alum production and other water treatment chemicals.
For Disposal and Injection Sites:
a. Location(s): The disposal site is an onsite monofil. Currently, the permittee does not have permission to
use the disposal area (monofil) due to past record of habitual non-compliance.
b. Driving Directions:
c. USGS Quadrangle Map name and number:
d. Latitude: Longitude:
II NE WAND MAJOR MODIFICA TIONAPPLICA TIONS (this section not needed for renewals or minor
modifications, skip to next section) N/A
FORM: ALCHEM staff report June 2011 draft 1

AQUIFER PROTECTION REGIONAL STAFF REPORT ... %- f
III RENEWAL AND MODIFICATIONAPPLICATIONS (use previous section for new or maior modification
systems)
(Description Of Waste(S) And Facilities
1. Are there appropriately certified ORCs for the facilities? ❑ Yes or ® No. N/A
Operator in Charge: N/A Certificate #: N/A
Backup- Operator in Charge: N/A Certificate #: N/A
2. Is the design, maintenance and operation (e.g. adequate -aeration, sludge wasting, sludge storage, effluent
storage, etc) of the treatment facilities adequate for the type of waste and disposal system? ❑ Yes or ® No.
If no, please explain: The permittee has decided to shut down the alum production at this facility. Equipment
used for this product has been rendered inferable as of the last inspection attached. The production tanks
are there but the mixers have been removed and the wing has been capped off. Please note that it would not
be di fictilt tore -assemble the production equipment.
3. Are the site conditions (soils, topography, depth to water table, etc) maintained appropriately and adequately
assimilating the waste? ❑ Yes or ® No. If no, please explain: There is a history of groundwater issues.
Please see file history sent via email.
4. Has the site changed in any way that may affect permit (drainage added, new wells inside the compliance
boundary, new development, etc.)? If yes, please explain: There are new monitoring wells.
5. Is the residuals management plan for the facility adequate and/or acceptable to the Division?
❑ Yes or ® No. If no, please explain: The company has a long history of non-compliance. The facility has
not ever kept proper residuals records Currently, there are two NOV/NOE's in process.
6. Are the existing application rates (hydraulic or nutrient) still acceptable? ❑ Yes or ® No. If no, please
explain: See file history attached.
7. Is the existing groundwater monitoring program (number of wells, frequency of monitoring, monitoring
parameters, etc.) adequate? ❑ Yes ® No ❑ N/A. Attach map of existing monitoring well network if
applicable. Indicate the review and compliance boundaries. If No, explain and recommend any changes to the
groundwater monitoring program: Current groundwater monitoring is dictated by the permits and the
CSA/CAP process There has not been an evaluation of appropriate groundwater monitoring for site closure
and there are few monitoring wells that are suited to provide long term information on the fill area.
8. Will seasonal or other restrictions be required for added sites? ❑ Yes ❑ No ® N/A If yes, attach list of sites
with restrictions (Certification B?)
9. Are there any buffer conflicts (treatment facilities or disposal sites)? ❑ Yes or ❑ No. ® N/A If yes, please
attach a map showing conflict areas or attach any new maps you have received from the applicant to be
incorporated into the pen -nit:
FORM: ALCHEM staff report June 2011 draft 2

AQUIFER PROTECTION REGIONAL STAFF REPORT
10. Is the description of the facilities, type and/or volume of waste(s) as written in the existing permit correct? ❑
Yes or ® No. If no, please explain: See 42 above.
11. Were monitoring wells properly constructed and located? ® Yes or ❑ No ❑ N/A. If no, please explain:
12. Has a review of all self -monitoring data been conducted (GW, NDMR, and NDAR as applicable)? ❑ Yes or
❑ No ® N/A. Please summarize any findings resulting from this review:
13. Check all that apply: ❑ No compliance issues; ® Notice(s) of violation within the last permit cycle;
Current enforcement action(s) ❑ Currently under SOC; ❑ Currently under JOC; ❑ Currently under
moratorium. If any items checked, please explain and attach any documents that may help clarify
answer/comments (such as NOV, NOD etc): See file.
14. Have all compliance dates/conditions in the existing permit, (SOC, JOC, etc.) been complied with? ❑ Yes
® No ❑ Not Determined ❑ N/A.. If no, please explain: See file.
15. Are there any issues related to compliance/enforcement that should be resolved before issuing this permit?
® Yes or ❑ No ❑ N/A. If yes, please explain: The facility (ALCHEM) has a long history of compliance
issues. This modification request is in regard to sampling a waste stream material that is currently not being
produced at ALCHEM. In fact, the production of the permitted waste has stopped. See the latest inspection and
permit history attached. See eval.and recommendations below.
V EVALUATIONAND RECOMMENDATIONS
1. Provide any additional narrative regarding your review of the application.: This modification request is in
regard to sampling a waste stream material that is currently not being produced at ALCHEM . In fact, the
manufacturingof f the product that produced the permitted waste has stopped. See the latest inspection attached.
The MRO is requesting that the modified permit include a request for information regarding site activity what
are they currently producing) and conditions be added to the permit to require a closure plan for the lagoons
where the permitted waste is currently being stored and include a closure date to be no longer than 12 months
from the issuance date of this permit modification. Please note that lagoon closure should not allow any
material to be buried in the fill area because ALCHEM cannot demonstrate that the waste has been properly
treated per the permit requirements. This requirement will need to be written into the permit. The MMO
strongly suggests that it is required by this permit modification that an outside party be contracted to document
the clean out and closure of the subject loons. Please note in this permit modification that a related
ALCHEM permit (WQ0002702) for the wastewater water recycle system is also affected and that modification
of that permit is inevitable since the recycle system was permitted exclusively for alum production. There are
ongoing groundwater monitoringissuesas well as deadline for a CAP that is past due. An extension has been
requested and has been denied. Long term monitoring of fill area and stabilization of fill area are necessary.
FORM: ALCHEM staff report June 2011 draft 3

-t-
AQUIFER PROTECTION REGIONAL STAFF REPORT .-;... .`
2. Attach Well Construction Data Sheet - if needed information is available
3. Do you foresee any problems with issuance/renewal of this permit? ® Yes ❑ No. If yes, please explain
briefly. See #1 comments.
4. List any items that you would like APS Central Office to obtain through an additional information request.
Make sure that you provide a reason for each item: see 91 above.
5. List specific Permit conditions that you recommend to be removed from the permit when issued. Make sure
that you provide a reason for each condition:
Condition I Reason
Sampling of spent bauxite should be suspended I Permittee is not producing the waste at this time.
6. List specific special conditions or compliance schedules that you recommend to be included in the permit when
issued. Make sure that you provide a reason for each special condition:
Condition
Reason
Documentation of current activity.
Site activity has changed.
Closure plan for the spent bauxite lagoons not to
exceed 12 months
No longer manufacturing alum therefore no
spent bauxite waste produced.
Outside party documentation of lagoon closure
Serious non compliance history.
Lagoon waste to be disposed of at a landfill
Waste to be removed from the lagoons is not
treated as the permit requires.
Confirmation of cap over existing fill area
Extensive grading activity of the area brings
doubt of proper disposal management.
7. Recommendation: ❑ Hold, pending receipt and review of additional information by regional office; ® Hold,
pending review of draft permit by regional office; ❑ Issue upon receipt of needed additional information;
n Issue with changes noted above; ❑ Issue; ❑ Deny. If deny, please state reasons:
8. Signature of report preparer(s):
Signature of APS regional super
Date: (-� . q'u. 1\
ADDITIONAL REGIONAL STAFF REVIEW ITEMS .
The MRO is concerned that the permittee will declare bankruptcy and abandon the site.
FORM: ALCHEM staff report June 2011 draft 4

1
w
AQUIFER PROTECTION SECTION
'LIGATION REVIEW REOUEST FO
Date: May 18, 2011
To: ❑
Landon Davidson, ARO-APS
❑
Art Barnhardt, FRO-APS
®
Andrew Pitner, MRO-APS
❑
Jay Zimmerman, RRO-APS
MAY 2 3
2011
,.
❑ David May, aRC AT%"C'
❑ Charlie Stehn n,_W" Y=
❑ Sherri Knight, WSRO-APS
From: Chonticha McDaniel ❑AFO❑GW Protection❑GW Planning ®LAU
E-Mail: chonticha.mcdaniel(aDncdenr.gov
Telephone: [phone]
A. Permit Number: WQ0016338
Fax:[phone]
B. Owner: Alchem Incorporated
C. Facility/Operation: Alchem-Incorporated Residuals Reuse Program
❑ Proposed _Z, Existing ® Facility ❑ Operation
D. Application:
1. Permit Type: ❑ Animal ❑ Surface Irrigation ❑ Reclaimed ❑ H-R Infiltration
❑ Recycle ❑ I/E Lagoon ❑ GW Remediation (ND)
❑ UIC - (5A7) open loop geothermal ❑ Single Family Residence
® Residuals
2. Project Type: ❑ New ❑ Major Mod. ® Minor Mod. ❑ Renewal ❑ Renewal w/ Mod.
E. Comments/Other Information: ❑ I would like to accompany you on a site visit.
Attached, you will find all information submitted in support of the above -referenced application for your
review, comment, and/or action. Within 30 calendar days, please take the following actions:
® Return a Completed APSARR Form.
❑ BIMS indicates monitoring wells locations are not complete. Please update monitoring well
locations not currently in BIMS.
❑ BIMS indicates ongoing ❑ NDMR ❑NDAR ❑ GW monitoring violations. Please investigate
reoccurring compliance issues and summarize results in staff report.
❑ Attach Well Construction Data Sheet.
❑ Process Attachment B for Certification by the Land Application Unit (LAU).
❑ Issue an Attachment B Certification from the RO.*
*coordinating site visits and reviews, as well as additional information requests with other RO-APS
representatives in order to prepare a complete Attachment B for certification. Refer to the RPP SOP for
additional detail.
Please indicate the name and date assigned in the spaces below, make a copy of this sheet, and return it to
the appropriate Central Office -Aquifer Protection Section contact person listed above.
RO-APS Reviewer:
Date:
FORM: APSARR 03/10
Page I of 1

HCDENR
North Carolina Department of Environment and Natural
Division of Water Quality
Beverly Eaves Perdue Coleen H. Sullins
Governor Director
April 26, 2011
Randall Andrews
Alchem Incorporated Residuals Reuse Program
8135 Red Road
Rockwell, NC 2813R
Subject: Acknowledgement of Application No. WQ0016338
Alchem Incorporated Residuals Reuse Program
Surface Disposal of Residual Solids (503 Exempt)
Rowan
Dear Mr. Andrews:
Resources
Dee Freeman
Secretary
The Aquifer Protection Section of the Division of Water Quality (Division) acknowledges receipt of your permit application and supporting materials
on April 15, 2011. This application package has been assigned the number listed above and will be reviewed by Chonticha McDaniel.
The reviewer will perform a detailed review and contact you with a request for additional information if necessary. To ensure the maximum
efficiency in processing permit applications, the Division requests your assistance in providing a timely and complete response to any additional
information requests.
Please be aware that the Division's Regional Office, copied below, must provide recommendations prior to final action by the Division. Please also
note at this time, processing permit applications can take as long as 60 - 90 days after receipt of a complete application.
If you have any questions, please contact Chonticha McDaniel at 919-715-6188, or via e-mail at [e-mail]. If the reviewer is
unavailable, you may leave a message: and they will respond promptly.
PLEASE REFER TO THE ABOVE APPLICATION NUMBER WHEN MAKING INQUIRIES ON THIS PROJECT.
Sincerely,
�i
for Jon Risgaard' V
LAU Supervisor
=mfflp
cc:
N110resvi-11Regiona'1 Ofrc ,Aquifer ' tection SectioMn'M
Permit Application File WQ0016338
AQUIFER PROTECTION SECTION
1636 Mail Service Center, Raleigh, North Carolina 27699-1636
Location: 2728 Capital Boulevard, Raleigh, North Carolina 27604
Phone: [phone] FAX 1: 919-715-0588; FAX 2: 919-715-60481 Customer Service: 1-877-623-6748
Internet: www.ncwateroualitv.org
An Equal opportunity 1 Affirmative Acton Emplover,
One
N rtfiCarolina
6
a 11,11

ALCHEM, INC
8135 RED ROAD
Apt 2011 ROCKWELL, NC 28138
704.279.7908 fax [phone]
[e-mail]
April 14, 2011
Mr. Ed Hardee
Land Application Unit
NCDENR Raleigh
Permit NO. WQ0016338
Dear Mr. Hardee,
I would like to apply to do the residuals analysis once a year as
Stipulated in the permit. I do not know if this requires the form
SDRS 02 — 07 or not. I have filled it out in any case. You can see
from past reports that there is such a small amount of the items in 3
that there is no need to do this twice a year. Please call me if you have
any questions.
Thank you,
Randall Andrews

RECEi
State of North Carolina N qikr PtrJt t?tF�G,, Pdier;
Department of Environment and Natural Resources .APR IS 2011
Division of Water Quality
SURFACE DISPOSAL OF RESIDUAL SOLIDS
(FORM: SDRS 070807)
(THIS FORM MAY BE PHOTOCOPIED FOR USE AS AN ORIGINAL)
Application Number: (to be completed by DWQ)
I. OWNERSHIP INFORMATION:
1. Specify whether the process facility is owned by:
❑ County; ❑ Federal;. ❑ Municipal; ❑ State; ❑ Non -Government.
2. Owner's name (please specifythe name of the municipality, corporation, individual, etc.):
J
Mailing address:
rJ
3� Q A ,
City: Oc k l- e-1t
State: 0 e L, Zip: ;L 13
Physical address:
City:.
State: Zip:
Telephone number: (
)
Facsimile number: ( )
E-mail address:
3. Signing official's name and title: (See Instruction A)
Mailing address:
City:
State: Zip:
Physical address:
City:
State: Zip:
Telephone number: (
)
Facsimile number: ( )
E-mail address:
II. PERMIT INFORMATION:
1. Application is for: ❑ new; '`modified; ❑ renewed permit (check all that apply).
2. Fee Submitted: $ (See Instruction B)
3. If this application is being submitted to renew or modify an existing permit, provide the following:
Permit number: 00 16 3 3 (please attach a copy of the existing permit).
Most recent issuance date: , and the expiration date:
FORM: SDRS 02-07 Page 3 of 6 Attachment Order 1

4. Who will be responsible for the day-to-day management of the residuals treatment and disposal program:
❑ Permittee or ❑ residuals management firm. If a residuals management firm, complete the following:
Firm contact person and title:
Firm name:
Mailing address:
City: State: Zip:
Telephone number: ( ) Facsimile number: ( )
E-mail address:
5. Estimated volume of residuals to be disposed at the facility
6. 100-year flood elevation
feet mean sea level.
7. Please provide a description of the surface disposal unit(s) (e.g. lagoons, monofil, etc.):
(dry tons/year).
8. Explain how access to the treatment and disposal units, by both human and animals, will be controlled:
9. Describe how runoff will be collected and disposed (The runoff collection system must have the capacity to handle runoff
from a 24-hour, 25-year storm event):
10. Describe the liner for the proposed or existing disposal unit (Please attach all construction and design specifications):
11. Describe the leachate collection system for the proposed or existing disposal unit (Please attach all construction and
design specifications):
12. Vertical distance between bottom of the disposal unit to the seasonal high water table: feet.
13. Depth of the seasonal high water table: feet.
FORM: SDRS 02-07 Page 5 of 6 Attachment Order 1

'Professional Engineer's Certification:
I, , attest that this application for has been reviewed by me and is accurate, complete and consistent with the information
supplied in the engineering plans, calculations, and all other supporting documentation to the best of my knowledge. I further attest
that to the best of my knowledge the proposed design has been prepared in accordance with the applicable regulations. Although
other professionals may have developed certain portions of this submittal package, inclusion of these materials under my signature
and seal signifies that I have reviewed this material and have judged it to be consistent with the proposed design. Note: In
accordance with NC General Statutes 143-215.6A and 143-215.613, any person who knowingly makes any false statement,
representation, or certification in any application shall be guilty of a Class 2 misdemeanor, which may include a fine not to exceed
$10,000 as well as civil penalties up to $25,000 per violation.
North Carolina Professional Engineer's seal, signature, and date:
:RECE9VEt. /
,Agl,Wlear Protf rk, i (11$1
(APR 15
Applicant's Certification:
The applicant or any affiliate has not been convicted of an environmental crime, has not abandoned a wastewater facility without
proper closure, does not have an outstanding civil penalty where all appeals have been exhausted or abandoned, are compliant with
any active compliance schedule, and do not have any overdue annual fees under Rule 2T .0105.
❑ Yes ❑ No, Explain;
I, , attest that this application for has been reviewed by me and is accurate and
complete to the best of my knowledge. I understand that if all required parts of this application are not completed and that if all
required supporting information and attachments are not included, this application package will be returned to me as incomplete.
Note: In accordance with NC General Statutes 143-215.6A and 143-215.613, any person who knowingly makes any false statement,
representation, or certification in any application shall be guilty of a Class 2 misdemeanor, which may include a fine not to exceed
$10,000 as well as civil penalties up to $25,000 per violation.
Signature:
Date:
THE COMPLETED APPLICATION PACKAGE,
INCLUDING ALL SUPPORTING INFORMATION AND MATERIALS,
SHOULD BE SENT TO THE FOLLOWING ADDRESS:
NORTH CAROLINA DEPARTMENT OF ENVIRONMENT AND NATURAL RESOURCES
DIVISION OF WATER QUALITY
AQUIFER PROTECTION SECTION
LAND APPLICATION UNIT
By U.S. Postal Service:
1636 MAIL SERVICE CENTER
RALEIGH, NORTH CAROLINA 27699-1636
By Courier/Snecial Deliverv:
2728 CAPITAL BOULEVARD
RALEIGH, NORTH CAROLINA 27604
TELEPHONE NUMBER: [phone]
FORM: SDRS 02-07 Page 6 of 6 Attachment Order 1

RECENED 1 Duw-k I DWQ
Aquile- Prot curer, S nlr rt
fi� SAP 2011
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
k residuals analysis shall be conducted twice per year from the date of permit issuance by the
Perniittee and the results maintained on file by the Perrittee for a minimum of five years. The
residuals analysis shall include the following parameters: /
Arsenic Nickel Magnesium
Cadmium Selenium Sodium
kChromium "Zinc IManganese
Copper Barium pH \
Lead Silver Phosphorous
h•Iercury Calcium Aluminum
EO(l),ce"Oper
he residuals have been monitored for two scars at the above frequency, the Permittee may a request to the Division for a permit modrtication to reduce the frequency of monitoring
lutant concentrations. In no case, however, shall the frequency of monitoring be less than
year v,,hen residuals are applied to the land.
1. 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 years. A
con-osivity, igritability, and reactivity analysis, as well as a Toxicity Characteristics Leaching
Procedure (T C�_P) 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 Pennittee for a minimum of five years.
The TCLP analysis shall include the following parameters (i.e., note the regulatory level in
milligrams per, iter in parentheses):
Arsenic (5.0) 1,4-Dichlorobenzerie (7.5) Nitrobenzene (2.0)
Barium (100.;.)) 1,2-Dichloroethane (0 5) Pentachlorgp:enol (100.0)
Benzene (0.5. 1,I-Dichloroethy1enc (0.7) Pyridine (5.0) ` �,�
admium (1.')) 2,4-Dinitrotoluene (0 13) Selenium (1.0)
Carbon tetracalon"de (0.5) Endrin (0.02) Silver (5.0)
Chlordane (0.03) Hexachlorobenzene (0.13) Tetrachloroethylene (0.7)
Chlorobenzei:e (100,0) Heptachlor (and its h.Ndioudc) (0.008) Toxaphene (0.5)
Chloroform (ei.0) Hexachloro-1,3-buiadiene (0.5) Trichloroethylene (0.5)
Chromium (5 0) Hexachloroethane (3 0) 2,4,5-Trichlorophenol (400.0)
n1-Cresol (200,0) Lead (5.0) 2,4,6-Trichlorophenol (2.0)
o-Cresol (200.0) Lindane (0.4) 2,4,5-TP (Silvex) (1.0)
p-Cresol (200.0) Mercury (0.2) Vinyl chloride (0.2)
Cresol (200.0 i Methoxychlor (10.0)
2.4-D (10.0). Methyl ethyl ketone (200.0)
�. Laboratory analysis as required by Condition II1 1, Condition III.2, and Condition III.3 shall be
per'fornied/gathcred 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) umler 15A NCAC 2H .0800 or 15A tiCAC 2H .1100.
4

OF W ATF9
� r
O �
F I L E Michael F. Easley, Governor
William G. Ross Jr., Secretary
North Carolina Department of Environment and Natural Resources
December 28, 2006
CERTIFIED MAIL — 9 7006 2150 0003 5466 1323
RETURN RECEIPT REQUESTED
Randall F. Andrews
ALCHEM, Inc.
8135 Red Road
Rockwell, NC 28138
Dear Mr. Andrews:
Alan W. Klimek, P.E. Director
Division of Water Quality
pCf7�11[E9aCE
JAN - 2 W
NC DENR MRO
DWQ - Aquifer Protection
Subject: P.er,luat N©. WIQ400163�3_$
CHEM, Inc.
Bauxite Residuals Monofill
Surface Disposal Program
Rowan County
In accordance with your application received on September 30, 2004, we are forwarding herewith
Permit No. WQ0016338, 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 No��buer
QZO01 , shall void Permit No. WQ0016338 issued' March 1, 1999, and shall be subject to the conditions and
limitations as specified therein.
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 structure be 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.
Aquifer Protection Section 1636 Mail Service Center Raleigh, NC 27699-1636 Phone [phone] Customer Service
Internet: http://h2o.enr.state.nc.us 2728 Capital Boulevard Raleigh, NC 27604 Fax [phone]
NorthCarolina
Natuta!!y
An Equal Opportunity/Affirmative Action Employer— 50% Recycled/10% Post Consumer Paper

`i
An earthen berm has since been' donstnicted 'completely around the fill material area to correct the '
problem and to keep the fill on the site. Although the fill is currently contained, the capacity of the enclosed
area 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
lie 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
'riecessaryato evalua�&Uhe adequacy of this residuals management system. This permit may be re -opened to
'address any concerns developed;as a result of the review of this information and the information submitted
i under Conditions I.1. and I.2. (see below), as well as any additional compliance issues.
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 150E of North Carolina General
Statutes, and filed with the Office of Administrative Hearings, 6714 Mail Service Center, Raleigh, North
Carolina 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
loo'"r"res vine .Rego'" io' nal ice, Aifer rotTican STi^n
Aquifer Protec ion Section, Central Office
Technical Assistance and Certification Unit
Permit Files

I • -J1
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 H 2, 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
No. WQ0016338 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 Embankment 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.

(30 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.
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).
H. OPERATION AND MAINTENANCE REQUIREMENTS
1. The facilities and application sites shall be properly maintained and operated at all times.
2. No residuals other than the following are hereby approved for use in accordance with this permit:
Permit Volume
Source County Number (dry ns/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
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);

,
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.
6. 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.
8. Adequate provisions shall 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.
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.
The permittee shall insure that the transportation of the residuals does not cause any adverse
�1 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 unit. If runoff cannot be prevented, a collection system shall be installed with
the capacity to handle runoff from a 24-hour, 25-year storm event. All collected runoff shall be
disposed in a 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
controls may include fencing and the posting of signs indicating the activities being conducted at
the unit.
M. MONITORING AND REPORTING REQUIREMENTS
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.

2. 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:
location of residuals utilization
volume of residuals disposed in gallons/year, dry tons/year, or kilograms/year
3. 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 years. 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)
o-Cresol (200.0)
Lindane (0.4)
2,4,5-TP (Silvex) (1.0)
p-Cresol (200.0)
Mercury (0.2)
Vinyl chloride (0.2)
Cresol (200.0)
Methoxychlor (10.0)
2,4-D (10.0)
Methyl ethyl ketone (200.0)
5. Laboratory analysis as required by Condition III.1, Condition 111.2, and Condition IH.3 shall be
1 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.
W

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;
c. Volume of residuals disposed of in the surface disposal unit in gallons per year, dry tons per
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).
5. Three copies of all required information, monitoring and reporting requirements as specified in
Conditions Ill 2, III 3, III 4 and III 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
6. Noncompliance Notification:
The Permittee 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.
5

IV. GROUNDWATER REQUIREMENTS
1. The COMPLIANCE BOUNDARY for the surface disposal unit 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 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 according to 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
15A NCAC 2L .0106 (d)(1).
Any groundwater quality monitoring, as deemed necessary by the Division, shall be provided.
V. INSPECTIONS
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 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 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 carried out in
accordance with the conditions of this permit, the supporting materials, and in the manner
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. In the event that there is a desire for the facilities to
change ownership or a name change of the Permittee, a formal permit request must be submitted
to the Division accompanied by an application fee, documentation from the parties involved, and
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
Permittee to an enforcement action by the Division in accordance with North Carolina General
Statute 143-215.6A to 143-215.6C.

6. 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 211.0205 (c)(4).
7. 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 NCGO10000, and any requirements
pertaining to wetlands under 15A NCAC 2B .0200 and 2H .0500.
8. 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 28t" day of December 2006
NORTH C OLINA E IRONMENTAL MANAGEMENT COMMISSION
f
Alan W. Klimek, P.E., Director
Division of Water Quality
By Authority of the Environmental Management Commission
Permit Number WQ0016338

oL� 1�L c—b

State of North Carolina
Department of Environment
and Natural Resources
Division of Water Quality
James B. Hunt, Jr., Governor
Wayne McDevitt, Secretary
A. Preston Howard, Jr., P.E., Director
--March l,_ 19=9-9-
Mr. Randall F. Andrews
Alchem, Incorporated
8135 Red Road
Rockwell, NC 28138
Dear Mr. Andrews:
IG33S'
Subject: Permit No. -
Alchem, Incorporated
Bauxite Residuals Reuse Program
Rowan County
In accordance with our telephone discussions, we are forwarding herewith a modification for Permit
No. WQ0016388, dated March 1, 1999, to Alchem, Incorporated for the on -site reuse of a silica residual from
bauxite digestion as a fill material.
This permit shall be effective from the date of issuance until December 31, 2004, shall void Permit
No. W00016388 issued January 21, 1999, and shall be subject to the conditions and limitations as specified
therein. The permit modification is to reduce the TCLP monitoring requirement to once every five years, with
the first monitoring required in 1999.
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, P.O. Drawer 27447, Raleigh, NC 27611-7447.
Unless such demands are made this permit shall be final and binding..,
If you need additional information concerning this matter, please contact Joe Pearce at [phone]
extension 544.
Sincere
A. reston Howard, Jr., P.E.
cc: Rowan County Health Department
Mooresville Regional Office, Water Quality Section
Technical Assistance and Certification Unit
Non -Discharge Compliance/Enforcement Unit
PO Box 29535, Raleigh, North Carolina 27626-0535 Telephone [phone] Fax [phone]
An Equal Opportunity Affirmative Action Employer 50% recycled/10% post -consumer paper

NORTH CAROLINA
ENVIRONMENTAL MANAGEMENT COMMISSION
DEPARTMENT OF ENVIRONMENT AND NATURAL RESOURCES
RALEIGH
PERMIT FOR THE USE OF RESIDUALS
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 reuse program (as structural fill) on Alchem, Inc.'s property at 8135 Red Road,
Rockwell, North Carolina using approximately 3000 dry tons per year of residuals from the sources listed in
Condition II 2, with no discharge of wastes to the surface waters, pursuant to the application received on
October 23, 1998, 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 December 31, 2004 and shall be subject
to the following specified conditions and limitations:
I. PERFORMANCE STANDARDS
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.
2. 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.
3. 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.
4. In the event that the bauxite residuals reuse program is not operated satisfactorily, including the
creation of nuisance conditions, the Permittee shall cease the reuse operation take any immediate
corrective actions as may be required by the Division of Water Quality (Division).
5. Written notification must be submitted to the Mooresville Regional Office, [phone], at least
two weeks prior to any use of residuals within 50 feet of any surface waters.

6. No residual shall be used with 100 feet of a potable water supply well unless a clay or synthetic
liner is placed over and under the residual during installation. It will be the responsibility of
Alchem, Inc. to verify the position and integrity of the liner prior to backfill. Under no
circumstances shall residuals be located within 25 feet of a potable water supply well.
II. OPERATION AND MAINTENANCE REQUIREMENTS
No residuals 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 3000
2. The following use of the residual is hereby approved:
- Structural fill on Alchem, Inc.'s property at at 8135 Red Road, Rockwell, North Carolina
3. Adequate provisions shall 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.
4. 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.
5. No residuals shall be used as pipe bedding for sanitary sewer, storm sewer, or potable water lines.
6. 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.
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.
2. Proper records shall be maintained by the Permittee tracking all utilization activities. These
records shall include, but are not necessarily limited to the following information:
a. location of residuals utilization
b. volume of residuals utilized in tons
3. A residual analysis shall be conducted twice per year from the date of permit issuance by the
Permittee. The results of all analysis shall be 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
Phosphorus
Mercury
Calcium
Aluminum
2

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 for the reduction of the frequency of
monitoring for pollutant concentrations, but in no case shall the frequency of monitoring be less
than once per year.
A Toxicity Characteristics Leaching Procedure (TCLP) analysis Fall be conducted by the
Permittee once every five years, wTith the first analysis regriirea in 1999 The TCLP analysis shall
include the following parameters (please note the regulatory ley I 111e 11, g%L in parentheses):
Arsenic (5.0)
Cadmium (1.0)
Chlorobenzene (100.0)
o-Cresol (200.0)
Cresol (200.0)
1,2-Dichloroethane (0.5)
Endrin (0.02)
Hexachlorobenzene (0.13)
Lead (5.0)
Methoxychlor (10.0)
Pentachlorophenol(100.0)
Silver (5.0)
Trichloroethylene (0.5)
2,4,5-TP (Silvex) (1.0)
Barium (100.0)
Benzene (0.5)
Carbon tetrachloride (0.5)
Chlordane (0.03)
Chloroform (6.0)
Chromium (5.0)
n1-Cresol (200.0)
p-Cresol (200.0)
2,4-D (10.0)
1,4-Diclilorobenzene (7.5)
1,1-Dichloroethylene (0.7)
2,4-Dinitrotoluene (0.13)
Heptachlor (and its hydroxide) (0.008)
Hexachloro-1,3-butadiene (0.5)
Hexachloroethane (3.0)
Lindane (0.4)
Methyl ethyl ketone (200.0)
Pyridine (5.0)
Tetrachloroethylene (0.7)
2,4,5-Trichlorophenol (400.0)
Vinyl chloride (0.2)
Mercury (0.2)
Nitrobenzene (2.0)
Selenium (1.0)
Toxaphene (0.5)
2,4,6-Trichlorophenol (2.0)
Three copies of all required monitoring and reporting requirements as specified in conditions I11 1,
I11 2, 1II 3, and III 4 shall be submitted annually on or before March 1 of the following year to the
following address:
NC Division of Water Quality
Water Quality Section
Non -Discharge Compliance/Enforcement Unit
Post Office Box 29535
Raleigh, North Carolina 27626-0535
Noncompliance Notification:
The Permittee 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:
Any occurrence with the residuals reuse program which results in the utilization of significant
amounts of residuals which are abnormal in quantity or characteristic.
b. Any failure of the reuse program resulting in a release of material to receiving waters.
Any time that self -monitoring information indicates that the facility has gone out of
compliance with the conditions and limitations of this permit.
e. Any spillage or discharge from a vehicle or piping system during transportation of residuals.
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.

IV. GROUNDWATER REQUIREMENTS
The COMPLIANCE BOUNDARY for the reuse site is specified by regulations in 15A NCAC 2L,
Groundwater Classifications and Standards. The Compliance Boundary is for the disposal system
constructed after December 31, 1983 is established at either (1) 250 feet from the waste disposal
area, or (2) 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 immediate rernediation action in addition to the penalty provisions applicable under
General Statute 143-215.6A(a)(1).
In accordance with 15A NCAC 2L, a REVIEW BOUNDARY is established around the disposal
systems midway between the Compliance Boundary and the perimeter of the waste disposal area.
Any exceedance of standards at the Review Boundary shall require remediation action on the part
of the permittee.
2. Any groundwater quality monitoring, as deemed necessary by the Division, shall be provided.
V. INSPECTIONS
The Permittee or his designee shall inspect the residuals storage, transport and fill sites 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 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 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 treatment 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
This permit shall become voidable unless the residuals reuse program is carried out in accordance
with the conditions of this permit, the supporting materials, and in the manner approved by this
Division.
2. This permit is effective only with respect to the nature and volume of residuals described in the
application and other supporting data.
This permit is not automatically transferable. In the event that there is a desire for the facilities to
change ownership or a name change of the Permittee, a formal permit request must be submitted
to the Division accompanied by an application fee, documentation from the parties involved, and
other supporting materials as may be appropriate. The approval of this request will be considered
on its merits and mayor may not be approved.

.y
f
f 4. 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.
5. 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).
6. 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.
7. 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.
8. This permit may be modified, or revoked and reissued to incorporate any conditions, limitations
and monitoring requirements the Division deems necessary in order to adequately protect the
environment and public health.
Permit issued this the F
NORTH CA
L
day of March, 1999
NA ENVIR ENTA
AGEMENT COMMISSION
A. Preston Howard, Jr., P.E., Director
Division of Water Quality
By Authority of the Environmental Management Commission
Permit Number WQ00143W
(I_�3F
5

Program Case Name
05-033
WILLIAMSON, GLENN JR.
County Check No. Check Received Amount Paid Date Closed
BRUNSWICK 1388 2/25/2008 $1,160.20
$1,160.20
WQO
04-0003
WATERS, WILLIAM
MECKLENBUR
12219
2/22/2008
$7,508.48
$7,508.48
WQP
06-037
PRIMROSEVILLA, INC.
HARNETT
1149
2/4/2008
$2,161.26
$2,161.26
06-061
wAQ-Q1-1Rka1G-1
ROBESON
23788
2/1912008
!�,1,000.00
A -
ROBESON
23760
2/5/2008
61230-01
_1000 00
WQP.
01-007
MERRITT, CARLTON WILLIAM D/B/A
MERRIT ORANGE
35130
2/13/2008
$184.66
$184.66
WQS
0z
C M
�;z
iv
";u
UK
0
g0�
5
EDWARDS, GROVER AND LUCY NORTHAMPT 1757 2/26/2008 $1,630.62
$1,630.62
N. C. Department of Justice - Attorney General's Office - Environmental Division 3
Report run on: 31412008 11:41: Page 3 of 4

Case Name Date Received: 3l23/2007 Program: C
AG Attorne 19
. 'SF Previous Attorney: Date Assigned: 3/23/2007
Y _ Y g DENR No:
Type of Case: jCIVIL PENALTY Region: FAYETTEVILLE 7County: F
Civil Penalty Date: 1 2/20/20071 Civil PenaltyAmount: $10,000.00 Investigative Costs:
Civil Penalty Received: Settlement Amount: $9,000.00 Amount Due: C
InActive: PAYMENT PLAN Amount Paid: Date Pald: Date Closed:
FORUM
ALCHEM, INC. I L3/23l2007 Forum: JOAH
Judge: ISAMMIECHESSJ I Judgment Date: CourtNo: lb7EHRO439
OAH Petition Received: 3/23/2007 OAH Notice Received: 3/23/2007
Date Filedd 3/2312007:
Summary: IWQ0016338 AND WQ0002702
Check No Date Received Amount Received
ALCHEM, INC.
3/23/20071
23788
2/19/2008
$1,000.00
F 3/23/2007
23760
1
2/5/2008
$21000.00
ALCHEM, INC.
Total Received: 1$3,000.00 Balance Due:, $6,000.00
.61
iDCC�E0w
MAR 2 5 2008
NC R MRO
nwo -Aquifer Protection

Af ,
'tea
ALCHEM, INC
8135 RED ROAD
ROCKWELL, NC 28138
704-279-7908 fax [phone]
dwol cott2(?_windstream. net
SPILL CONTROL PLAN
IN THE UNLIKELY EVENT OF A SPILL, THE FOLLOWING PROTICAL
SMALL BE FOLLOWED IMMEDIATELY.
1. MANAGEMENT OF CLEAN UP ACTIVITIES: The first Company Representative
(i.e. operator, driver or manager) on scene will begin any necessary actions to
control/stop the spill, call ALCHEMS' home office and contact Local Law Enforcement.
At this time Alchem, Inc will dispatch a member of management with the appropriate
equipment and labor force to the scene. Once arriving on scene, the member of
management will take charge of the spill site and coordinate clean-up effort. The
member of management on scene will have an open line of communication with any and
all Local / State Law Enforcement and any required State Regulatory Agencies, for the
purpose of answering questions regarding clean-up activities.
2. HALTING SOURCE OF SPILL: Since all Bauxite Sand would (once permitted) only
be hauled in a Dump Truck or Dump Trailer, the likeliest cause of a spill of this type
would be due to a broken tailgate, motor vehicle accident, driver error (i.e. not locking
tailgate or closing correctly) or equipment malfunction. This would be handled on an
individual basis at the time of incident. Defming the cause would enable Management to
employ the best practices to stop spillage.
3. CONTAIN SPILL: Since Bauxite Sand is an Earthen Product that has a moisture
content of 25% or less, the hest practice would be to keep the Bauxite Sand contained in
the immediate spill area with a shovel and broom, which are carried on the transport
vehicle.
4. CLEAN-UP: For Bauxite Sand spills under 5cy, Alchem, Inc would employ a 5195
Bobcat Loader, shovel, brooms and the appropriate labor force needed for spill. Amounts
exceeding 5cy, Alchem, Inc will employ a Cat IT26 Front End Loader with quick
disconnect coupler with a 2cy bucket and rotary broom, this equipment would be
transported to spill scene via lowboy trailer and an additional Dump Truck/Trailer would
also be dispatched to scene. Alchem, Inc owns all of the above mentioned equipment so
there would be no delay in the clean-up process, i.e. waiting for above equipment to be
delivered.
5. FINAL CLEAN-UP: The best management practices will be employed to assess the
FINAL CLEAN-UP. If the Bauxite Sand has a PH lower then 6.Osu, Alchem, Inc will
disperse a Dry or Liquid Lime upon approval of the appropriate State Regulatory
Representatives (Alchem maintains both dry & liquid lime at its facility at all times) and
also has the logistic ability to haul both products to the spill location. If spill occurs on
private property, the clean-up will be completed to the satisfaction of the property owner
and State Regulatory Representatives. The ultimate goal is to restore the spill area to its
original condition, if at all possible.

6. NOTIFICATION: As soon as possible, after the spill occurs, a member of Alchems'
Management will notify appropriate Local & State Law Enforcement as well as the
Regional Office of NCDENR, based on the geographical location of the spill. At that
time the NCDENR Regional Office contacted would be responsible for notifying other
KEY NCDENR Personnel within the required time frame.
7. REPORTING: A written report will be prepared by ALCHEMS' Chief Operating
Officer, Robert A. Wolcott. This will be a detailed report of the determined cause of the
incident; it will contain all Law Enforcement Reports and a full step by step clean-up report.
This report will be furnished to the appropriate Local & State Regulatory Agencies. If any
additional information is required by above mentioned agencies after the report is received, it
can be requested by calling Alchem, Inc directly.

i
EMERGENCY SPILL PLAN CONTACT INFORMATION
um
ALCHEM, INC
CHIEF OPERATIONS OFFICER
BOB WOLCOTT
704-245-9689 / CELL
704-279-7908 / OFFICE
OPERATIONS MANAGER
JASON DESIATO
704-645-8204 / CELL
704-279-7908 / OFFICE
PLANT MANAGER
TRENT TIDWELL
704-213-4704 / CELL
704-279-7908 / OFFICE
EMERGENCY 911 &
CALL LOCAL LAW ENFORCEMENT
NC DWQ ENVIRONMENTAL EMERGENCY
1-800-858-0368
NIGHTS, WEEKENDS & HOLIDAYS
1-800-662-7956
NC DWQ ACQUIFER PROTECTION SECTION
MOORESVILLE REGIONAL OFFICE 704-663-1699
CONTACT: ELLEN HUFFMAN

e LJ

ALCHEM, INC
8135 RED ROAD
ROCKWELL, NC 28138
704-279-7908 fax [phone]
[e-mail]
March 3, 2008
RE: OPERATION & MAINTENANCE PLAN / 15A NCAC 02T .1110_`�
2:
Dear Ms. Hoffman,
I was wandering if you could possibly help me; I am trying to put the Transport Vehicle`'
Inspection and Spill Plan together as per your request. I have tried my best to research this, but
have come up with nothing. If you have any idea where I could find this information or maybe
you have one on file that I could reference to? I would greatly appreciate it if you could supply
me with a copy, this would be a tremendous help to me. If it is not possible for you to forward
me a copy, toen maybe I could come to Mooresville and just take a peak at one or pick up any
information you could provide me with.
Thank you in advance for your assistance.
Thank you,
ROBERT A. WOLCOTT
CHIEF OPERATIONS OFFICER
ALCHEM, INC
813 5 RED RD
ROCKWELL, NC 28138
0 3/11je Jc/

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 11, 2008
Mr. Robert Wolcott, Chief Operations Officer
ALCHEM, Inc.
8135 Red Road
Rockwell, NC 28138
RE: Spill Plan
Permit # WQ0016338
Bauxite Residuals Monofil
Surface Disposal Program
Rowan County
Dear Mr. Wolcott:
Per your request, please see the enclosed copy of a suitable transport spill plan. This plan is
sent to you for guidance purposes only. This plan should help you to write an appropriate spill plan for
transport of ALCHEM's spent bauxite residuals. It is required for each truck to have a copy of the spill
plan with them during transport activities for final disposal of the subject material. A copy of this plan
should be submitted to our Office for approval.
If you have any questions,'please contact me at [phone].
Sin r, ly,
'llen Huffman
Environmental Specialist
Division of Water Quality / Aquifer Protection Section / Mooresville Regional Office Phone: [phone] Fax: [phone] NoithCarolina
610 East Center Avenue, Suite 301, Mooresville, NC 28115 Internet: vvww.ncwaterguality.orq Naturally

Z�- 3
• Combining ALCHEM's permits (WQ0002702 and WQ0016338)
• Current status of the January 12, 2005 Notice of Violation and any possible
penalty assessments.
laff �7 u1��� �t d.
• Our response to the Permittee on:
o Permit Issues
o The Notice of Violation
o The March 2, 2004 Settlement Agreement f`ti`l dons q��rouch �,
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Michael F. Easley, Governor
William G. Ross Jr., Secretary
North Carolina Department of Environment and Natural Resources
Alan W. Klimek, P.E. Director
Division of Water Quality
AQUIFER PROTECTION SECTION
May 18, 2007
Mr. Randall Andrews
Alchem, Inc.
2042 Buie Philadelphus Road
Red Springs, North Carolina 28377
and
Alchen, Inc.
8135 Red Road
Rockwell, North Carolina 28138
RE: Overdue Notice
Alchem — Red Road Site
Non -discharge Permit No. WQ0002702
Industrial Recycle — Bauxite Process
Rowan County
Dear Mr. Andrews:
On March 30, 2007, this office sent you an acknowledgement of receipt for your
Performance Improvement Plan. In that correspondence you were requested to submit a copy
of the evaluation and recommendations that was being prepared by S&ME. You were also
requested to submit a modified timeline for bringing the lagoons into compliance. This
information was due within 30 days of receipt of the acknowledgement. To date, we have not
received the documents. Please submit them within 15 days or provide a reason why you
cannot comply.
Should you have any questions, do not hesitate to contact Peggy Finley or me at
704/663-1699.
Sincerely,
Andrew H. Pitner, P.G.
Regional Environmental Supervisor
Cc: Gary C. Ribblett, P.E.- Delta Environmental Consultants, Inc., 8008 Corporate Center Dr.,
Suite 100, Charlotte 28226
MAF/achem overdue 5-18-07
One
Division of Water Quality / Aquifer Protection Section / Mooresville Regional Office Phone: [phone] Fax: [phone] NorthCarolina
610 East Center Avenue, Suite 301, Mooresville, NC 28115 Customer Service 1-877-623-6748 Internet: www.ncwaterguality.org Natur'914V

war
0z
Michael F. Easley, Governor
William G. Ross Jr., Secretary
_ V
North Carolina Department of Environment and Natural Resources
[ DAlan W. Klimek, P.E. Director
Division of Water Quality
AQUIFER PROTECTION SECTION
March 12, 2007
CERTIFIED MAIL
RETURN RECEIPT REQUESTED
Mr. Randall Andrews
ALCHEM, Inc.
2042 Buie Philadelphus Road
Red Springs, NC 28377
and
ALCHEM, Inc.
8135 Red Road
Rockwell, NC 28138
Subject: Response to ALCHEM Letters
Dated March 5 and 12, 2007
Regarding WQ0016338
Bauxite Residuals Reuse Program and
Regarding WQ0002702
Industrial Recycle — Bauxite Process
Rowan County
Dear Mr. Andrews,
The Mooresville Regional Office is in receipt of your faxed letters of March 5th and March 12th, 2007.
The NOV/NRE dated December 12, 2006, directed you not to use the permitted fill area and to find a
suitable alternative disposal option until current site conditions are properly rectified. The NOV/NRE dated
December 20, 2007, directed you to prepare an engineering report within 90 days of your receipt of the
letter that details the steps you will take to make the recycle system perform satisfactorily. This report must
detail the plan, with a timeline, for removal and disposal of the residuals in the three lagoons. In addition, a
NC professional engineer will need to verify the integrity of the liners of each of the lagoons and repair of
the banks. This plan should also include a design for stormwater diversion. Based on your receipt of the
NOV/NRE on December 21, 2006, the Division of Water Quality expects your completed plan will be
submitted no later than March 21, 2007.
Though we are pleased to know that you have begun to engage the services of a consulting engineer
and have started the process of identifying options to make necessary repairs to the facility, to date, you
have not submitted a complete plan that addresses the environmental concerns outlined in the NOV/NREs.
As such, I strongly suggest that your next steps are to assemble and submit a plan that addresses the
problems at your facility.
Division of Water Quality / Aquifer Protection Section / Mooresville Regional Office Phone: [phone] Fax: [phone]
610 East Center Street, Suite 301, Mooresville, NC 28115 Internet: httpJ/gw.ehnr.state.nc.us
iCarolina
turally

ALCHEM, Inc.
WQ0016338 & WQ0002702
March 12, 2007
Page 2 of 2
If you have any questions concerning this matter, please do not hesitate to contact Ms. Huffman, Ms.
Finley, or myself at at [phone].
Sincerely,
Andrew H. Pitner, P.G.
Environmental Regional Supervisor MRO APS
cc: Gary Ribblet, P.E. DELTA, 8008 Corporate Center Dr., Charlotte, NC 28226
Ed Hardee, Residuals Coordinator
David Goodrich, Non -Discharge Permitting Unit
Ellen Huffman & Peggy Finley, Mooresville Regional Office

March 7, 2007
Page 1
MEMORANDUM
Reply to:
Stormie D. Forte
Environmental Division
Tel: [phone]
Fax: [phone]
sforte,owncdoi.gov
TO: Ellen Huffinan, Environmental Specialist, Mooresville Regional Office;
Peggy Finley, Aquifer Protection Section, Mooresville Regional Office;
Wes Bell, Environmental Technician, Mooresville Regional Office;
Andrew Pinter, Supervisor, Aquifer Protection Section, Mooresville Regional
Office;
Kim Colson, Supervisor, Land Application Unit, Aquifer Protection Section,
Central Office;
David Goodrich, Land Application Unit, Aquifer Protection Section, Central
Office;
Edward Hardee, Land Application Unit, Aquifer Protection Section, Central
Office;
FROM: Stormie D. Forte, Associate Attorney General
DATE: March 7, 2007
RE: Permit WE0016338 appeal by Alchem, Inc.
OAH # 07 EHR 0177
Please note that I have been assigned to handle the above referenced appeal. I will need to begin
preparing our case as soon as possible. Please review the important dates listed below and provide me
with the requested information by hand delivery or by mail.
March 9, 2007 Prehearing Statements and Document Constituting Agency Action due to be
filed with OAH. I have a copy of the Permit from Ed Hardee. Please forward
other documents in the permit file via inter -office mail within the next two
weeks.
May 28, 2007 ALL Discovery must be complete by this date. If we receive discovery from the
Petitioner, we must respond within 15 days of receipt.
Week Beginning
June 11, 2007 Hearing set in Fayetteville, NC with Sammie Chess, Jr., Administrative Law
Judge presiding. You have been listed as witnesses. If this date poses a conflict
with anyone, please inform this office immediately.
If you have any questions or comments regarding this case, please do not hesitate to call this
office. Please mark the appropriate dates on your calendars.
Thank you for your attention to this matter.

Permit W00016338- Alchem, Inc.
Subject: Permit WQ0016338- Alchem, Inc.
From: Ed Hardee <[e-mail]>
Date: Mon, 05 Mar 2007 15:41:44 -0500
To: Janet Leach <[e-mail]>
CC: Ellen Huffinan <[e-mail]>, Peggy Finley <[e-mail]>, Andrew
Pitner <[e-mail]>, [e-mail], Kim Colson <[e-mail]>,
David. [e-mail]
Janet,
The potential witness list for the contested case hearing for permit WQ0016338 includes;
Ellen Huffman - Mooresville Regional Office, Aquifer Protection Section [phone]
Peggy Finley - Mooresville Regional Office, Aquifer Protection Section [phone]
Andrew Pitner - Supervisor, Aquifer Protection Section, Mooresville Regional Office [phone]
Wes Bell - Mooresville Regional Office, Surface Water Protection [phone]
Kim Colson - Supervisor, Land Application Unit, Aquifer Protection Section, Central Office [phone]
David Groodrich - Land Application Unit, Aquifer Protection Section, Central Office [phone]
Edward Hardee - Land Application Unit, Aquifer Protection Section, Central Office [phone]
I will fax you a copy of the permit to [phone].
E D Hardee
Land application Unit
1 of 1 3/5/2007 4:24 PM

..... !...•..'.--............................................................................................................................................................................
FROM FAX NO. Mar. 18 2002 02:08PM P1
ALCHEM., INC.
Corporate Office Sales and 1tyManUfacturing
2042 Buie Philadelphus Road
8135 Red Road
Red Springs, NC 28377
Rockwell, NC 28138
Tel. 910-M-2121 -- 800,522-2944 Tel. [phone] — 800.462-2586
Fax [phone] Fax [phone]
rfa(nlsemr.net
pdtyeC??alltel.net
March 5, 2007
Mr. Andrew Pitner
Environmental Regional Supervisor
NCDENR
610 East Center St., Suite 301
Mooresville, NC. 28115
Dear Mr, Pitner:
I have your letter of February 14, The reports from BOY'LE ENGINEERING states that
we need to under cut the sand and pack it properly. Also, we need to provide drainage
for any trapped water. We have retained SandME in Mooresville to help us with this
project. We should start this work within two weeks. The report also recommends not
putting additional lateral pressure on the berm. We have not done this and do not plan to
do this. We have removed a significant amount of water from the sand berm area. The
water levels are currently very low. We are almost ready to present a plan from DELTA
ENVIRONMENTAL detailing how we can stop any seepage from the bernrl area. The
pH in the runoff from storin water in the sand berm area is higher than the pH of the
water at the bottom of the sand berm area_ We have in the past found that the pH of the
rainfall in our area is about 5.0. This seems to be what the run off from the sand is in
several places. We have been mixing the sand with Lime and this has the effect of
increasing the pH and not lowering the p(I- I;aask�you_a.gain -to-allow us_to move _scrme_af_
the sand from_ our_sand_lagoons to the -sand -berm area. The sand berm area is not full and
can easily accept many thousands of cubic yards .from the lagoons.
I will call you about this.
Best regards,
ALCHEM, INC
Randall F. Andrews,
Plant Manager
arcs

FROM FAX NO. Mar. 1S 2002 02:09PM P2
SUSTAINABLE STRATEGIES FOR GLOBAL LEADERS
February 26, 2007
Mr. Randall Andrews
ALCHEM, Inc_
2042 Buie Philadelphus Rd.
Red Springs, NC 28377
Subject: Proposed Steps for Stormwater Pond Berm Reconstruction
Rockwell, North Carolina
Dear Mr. Andrews:
Delta Consultants (Delta) is pleased to provide this description of proposed
tasks for elimination of seepage from the existing stormwater retention pond
berm at your Rockwell, North Carolina facility.
PROJECT UNDERSTANDING
Delta engineers have visited the facility and understand that leakage has been
detected under the toe or through the existing berm at the stormwater retention
pond.
It is our understanding that the seepage may be a result of either insufficient
construction and compaction of the existing berm, and/or materials of
construction which may not have adequate impermeability to retain the
DELTA impounded stormwater.
RECOMMENDATIONS
Delta proposes the following steps to eliminate seepage of impounded water
through or under the berm.
Step 1 — Geotechnical Study of Existing Conditions
Prior to any detailed design of a retention system, it is necessary to collect
geotechnical information from within the berm. The purpose of the study is to
collect data to identify the depth at which leakage is occurring from the
retention pond. This data is necessary to properly design the modifications to
the existing berm.
Steq 2 — Reconfin u ration of Existino Retention Fond and Drainaae
Delta recommends that the existing stormwater retention pond be reconfigured
to reduce the linear area at which it contacts the retention berm. By
construction of drainage features and additional filling of the northern portion of
the pond area, the area of the stormwater retention pond would be reduced
and the length of the required retention berm could be reduced, This would
further limit the potential area for migration of retained stormwater, as well as
make pumping of the stormwater to the production area for reuse more
efficient.
---
BOOB Corporate Center Drive $ulte 100 Charlotte, NC 28226 USA
Peoll6: 7011.5111.9F.190 / 3DC�.a'/'/�%411 Fax! 7Cj4.543.4U31>
w ww_d ej l•AOAV.001ri

:....:...'....,............................................................................................................................................................................
FROM FAX NO. Mar. 1e 2002 02:09PM P3
Mr. Randal Andrews
ALCHEM, Inc.
Stormwater Pond Berm Reconstruction
February 26, 2007 Page 2 of 2
Step 3 — Berm Modification
Increased Berm Thickness
Delta recommends increasing the thickness of the retention berm via construction of an additional property
constructed, compacted section in the downgradient side of the existing berm. The design details,
recommended thickness, etc_ will depend upon information collected in the geotechnical study described
in Step 1 above, and the compacted characteristics of the selected construction materials, This extended
thickness of the berm, with a gentler downstream slope would also prevent future erosion of the berm after
vegetation was developed.
Synthetic Barrier
As an additional step to increase impermeability of the berm, Delta proposes installation of a vertical
synthetic barrier within the berm to a depth below the areas of leakage, This barrier would further prevent
leakage through the berm. Depth and construction of this barrier would also depend upon determination
of the seepage depths from the Step 1 geotechnical study.
Internal Drainage System
If feasible as a backup system, a drainage system may be considered for installation within and at the
bottom of the berm behind the synthetic barrier. If depths and subsurface conditions are appropriate, the
drainage system could be gravel -filled and sloped toward the south end of the berm, closest to the
production area. Any material which did reach the trench would then be directed toward the south and a
collection sump from which it could be pumped to the production area.
We would be happy to discuss these recommendations in more detail at your convenience. Please do not
hesitate to contact me at [phone] or Johnnie Ho at [phone] with questions.
Sincerely,
DELTA ENVI RON M ENTALCONSULTANTS, INC.
Gary C. R_iib"blett, P.E.
Senior Project Manager

[Fwd: [Fwd: few Case]]
Subject: [Fwd: [Fwd: New Case]]
From: Ed Hardee <[e-mail]>
Date: Mon, 05 Mar 2007 15:43:28 -0500
To: Ellen Huffman <[e-mail]>
Subject: [Fwd: New Case]
From: Frances Candelaria <[e-mail]>
Date: Fri, 02 Mar 2007 07:48:00 -0500
To: Ed Hardee <[e-mail]>
CC: "Leach, Janet" <[e-mail]>
I think this one is a non -discharge case.
Frances Candelaria
Surface Water Protection Section
NC Division of Water Quality
[phone] Ext. 520
Subject: New Case
From: "Leach, Janet" <[e-mail]>
Date: Thu, 1 Mar 2007 12:41:34 -0500
To: "Teresa Matthew" <[e-mail]>, "Frances Candelaria`
<Frances. Candelaria@ncmail. net>
CC: "Forte, Stormie" <[e-mail]>
I received a new case that I think came directly from OAH and was not routed your way.
Name: Alchem, Inc.
County: Robeson
Filed at OAH: February 2, 2007
Issue: "I hereby ask for a contested case hearing" for the reason listed: "The permit issued on 12/28/06
(WQ 0016338) and received by Alchem, inc. on 1/3/07 contains provisions that Respondent is
attempting to apply to Petitioner in an arbitrary and capricious manner".
I was waiting to get the usual information from you, but I realize now that you may not have
received anything on this case. I do apologize for the lateness of this request. However, I would
appreciate your assistance if this can be forwarded to the proper personnel at DENR.
Because this is late, I will need someone to fax or PDF the aforementioned Permit and a list of
potential witnesses (names and titles) for the case to me. The rest of the file can be copied and
sent through the mail later.
1 of 2 3/5/2007 4:25 PM

[Fwdt-[Fwd: jRew Case]]
Important dates related to this case are:
March 3, 2007 Prehearing Statement is due. In submitting this, we need a copy of the
signed Permit and the witness list.
May 28, 2007 Discovery must be complete.
June 11, 2007 Judge Chess scheduled the hearing for the week beginning June 11,
2007.
The case has been assigned to Stormie Forte.
If you have questions concerning this correspondence, you may direct them to me either by email,
Telephone: [phone] or Fax: [phone]. If you have questions or comments
concerning the
case, you may direct them to attorney Forte at [phone].
Thank you very much for your assistance in this matter.
I [Fwd: New Case] Content Type message/rfc822
Content -Encoding: 7bi
j Content -Type: message/rfc822
New Case
Content -Encoding: 7bit
2 of 2 3/5/2007 4:25 PM

Lrwu: ice: ai urmivi Aujuciauonj
Subject: [Fwd: Re: ALCHEM Adjuciation]
From: Peggy Finley <[e-mail]>
Date: Thu, 01 Mar 2007 08:25:58 -0500
To: Ellen Huffman <[e-mail]>
FYI on the residuals permit.
Peggy Finley - [e-mail]
North Carolina Dept. of Environment & Natural Resources
Div. of Water Quality - Aquifer Protection Section
Iredell County Government Center
610 E Center St., Suite 301
Mooresville, NC 28115
Ph: [phone] Fax: [phone]
Subject: RE: ALCHEM Adjuciation
From: "Forte, Stormie" <[e-mail]>
Date: Tue, 27 Feb 2007 18:23:34 -0500
To: "Peggy Finley" <[e-mail]>
Alchem has requested an appeal of the decisions of the ALJ and Superior
Court Judge. Both sides have filed briefs with the North Carolina Court
of Appeals. Because the issues have not been resolved, the permit issued
in 12/04 cannot take effect and Alchem should be operating under the
terms of the old permit. Additionally, I think another permit was
recently issued by DWQ and Alchem has filed a contested case petition
for that permit also.
Thanks,
Stormie
-----Original message -----
From: Peggy Finley [mailto:[e-mail]]
Sent: Tuesday, February 27, 2007 10:23 AM
To: Forte, Stormie
Subject: ALCHEM Adjuciation
Hey Stormie:
What is the status of this case? The last file number that I find is 05
CVS012073. I'm overseeing this permit now (WQ0002702) and was wondering
if the December 28, 2004 is in force yet?
Peggy Finley - [e-mail]
North Carolina Dept. of Environment & Natural Resources
Div. of Water Quality - Aquifer Protection Section
Iredell County Government Center
610 E Center St., Suite 301
Mooresville, NC 28115
Ph: [phone] Fax: [phone]
1 of 2 3/1/2007 8:51 AM

Direct: 704.5433910
Delta Fax: [phone]
1////,t
Environmental [e-mail]
Consultants, Inc. www.deltaenv.com
8008 Corporate Center Drive • Suite 100
Charlotte, North Carolina 28226 USA
Gary C. Ribblett, P.E.
Project Manager A.—b6 of.•
XinogeifEnAmnmeotalaffi�

O(� VVr�/F9 Michael F. Easley, Governor
p William G. Ross Jr., Secretary
�O' G North Carolina Department of Environment and Natural Resources
Alan W. Klimek, P.E. Director
, Division of Water Quality
o�
AQUIFER PROTECTION SECTION
January 9, 2006
MEMORANDUM
Memo To: David Goodrich
From: Ellen Huffman
Subject: Draft permit Alchem, Inc.
Permit No. WQ0016338
Mooresville Region
I have reviewed the draft WQ0016338 permit. I have just a few things that I would like to see added
or changed.
• The MRO would like to require the addition of 3 more monitoring wells to be located to
monitor groundwater around the newly named "fill" area.
II-2, change "leached" to spent and add something like "from 3 spent bauxite lagoons". Clarify
what a -location of residuals utilization means. Add a pH requirement here (or somewhere in
the permit).
• II-3, specifically require this testing to be reported by a certain time at the issuance of the
permit.
II-4, can we add an aluminum number here?
• II-9, change "shall be utilized" to shall be disposed of.
• III-2 change "tracking all application activities" to tracking all monofill activities. Be specific
about documenting each lagoon cleanout, vol. Etc...
III-2&3 refer these to all three lagoons 2x'a per year.
• III-4, typo. Change Cond. 1.6 to Cond.II-2.
• III-5, specify information to include all three lagoons.
® Most importantly, the permit needs to require testing of the berm for structural credibility and
limit it's height to something like 15 ft. or whatever we can limit it to and to have the height
and credibility certified be an engineer.
Note: Do we want to add a request fro them to document that they can hold 24-hr/25year stormwater
volume in the unpermitted stormwater basin that is catching approximately a 5 acre area of run-off?
Please bold the annual report requirements in the permit and in the cover letter.
I am going to go back to the site Friday, January 13'h and take Chet Whiting, Lab Cert., MRO, with me
to see if any other requirements may be needed, including test methods for the spent bauxite to monitor
if the bauxite has been washed enough to be land -filled and does not leach acid when wet. I will let
you know if the Lab folks advise us to add additional monitoring.
Division of Water Quality I Aquifer Protection Section / Mooresville Regional Office
610 East Center Street, Suite 301, Mooresville, NC 28115
Phone:
NorthCarol
[phone] Fax: [phone] Natural
Internet: http://�w.ehnr.state.nc.us//�w.ehnr.state.nc.us �/ V `/

�F W ATF9 Michael F. Easley, Governor
O� QG William G. Ross Jr., Secretary
r� T.North Carolina Department of Environment and Natural Resources
p Y Alan W. Klimek, P.E., Director
Coleen H. Sullins, Deputy Director
Division of Water Quality
NC DEPT. OF ENVIRUNWtNT
June 8, 2005 AND NATURAL RESOURCES
CERTIFIED MAIL RECEIVED
RETURN RECEIPT REQUESTED
Mr. Randall F. Andrews, President JUN .9 2005
ALCHEM, Inc.
2042 Buie Philadelphus Road MOORESVILLE REGIONAL OFFICE
Red Springs, North Carolina 28377 DWO-GROUNDWATER SECTION
Subject: Application No. WQ0016338
Request for Additional Information
ALCHEM, Inc.
Bauxite Residuals Program
Rowan County
Dear Mr. Andrews:
The Non -Discharge Permitting Unit has conducted a preliminary review of the subject permit application package
and has performed a visit to the subject property. Additional information is required before we may continue our
review. Please address the following items no later than July 8, 2005.
In 1998, ALCHEM, Inc. applied for a pen -nit to utilize silica residual from bauxite digestion as a
structural fill material to support an on -site building. To the best of our knowledge, this structure has
not been built. Because the issuance of predicated on the silica material being used as foundation
support for a structure, we need to know when the structure is to be built. Further, we require the results
of a structural evaluation of the material (or the material it is to become, if it is augmented by the
addition of clay or some other material to change its physical properties). If the silica is to be combined
with another substance, we need to be informed of the nature of this substance, as well as its physical
properties (density, proctor strength, etc). We further require an estimate of the volume of fill material
you now have oil your site, as well as the estimated volume you will need to serve as the foundation
pad for the building.
2. The Division requires that we be informed of the identity of the signing official. If this official is not a
corporate official, we will require a delegation letter from a corporate official attesting to the fact that
the signing official is duly authorized to sign.
Please be aware that you are responsible for meeting all requirements set forth in North Carolina rules and
regulations. Any oversights that occurred in the review of the subject application package are still the responsibility
of the applicant. In addition, any omissions made in responding to the above items may result in future requests for
additional information.
Please reference the subject application number when providing the requested information. Three copies of all
revised and/or additional documentation should be signed, sealed, dated, and submitted to my attention at the address
below.
Please note that failure to provide this additional information on or before the above requested date may result in
your application being returned as incomplete.
Nne
orthCarolinr
Xatmally
Aquifer Protection Section 1636 Mail Service Center Raleigh, NC 27699-1636 Phone [phone] Customer Service
Internet: http:Hh2o.enr.state.nc.us 2728 Capital Boulevard Raleigh, NC 27604 Fax [phone]
An Equal Opportunity/Affirmative Action Employer-50% Recycled/10% Post Consumer Paper

If you have any questions regarding this request, please do not hesitate to contact me at [phone]. You may
also check the future status of this project online at http //h2o enr state nc us/bims/Reports/reportsPerniits.htm1.
Thank you for your cooperation.
Sincerely,
David Goodrich
Hydrogeologist
Non -Discharge Permitting Unit
Cc: Andrew Pitner, Mooresville Regional Office, Aquifer Protection Section
Rex Gleason, Mooresville .Regioal Office, Surface Water Protection Section
Permit Application File WQ0001817

\0b0 T 4z9..,,.,, QG William G. Ross Jr„ Secretary
ry North Carolina Department of Environment and Natural Resources
co f ((L� JJ`' oo
Alan W . Klimek, P.E. Director
>_ Division of Water Quality
AQUIFER PROTECTION SECTION
April 22, 2005
CERTIFIED MAIL
RETURN RECEIPT REQUESTED
Mr. Randall Andrews, Sales Manager
ALCHEM, Inc. -
2042 Buie Philadelphus Road
Red Springs, :NC 28377
and
ALCHEM, `lnc.
8135 Red Road
Rockwell, NC '28138
RE: Notice of Regulatory Requirements
.Permit #WQ0002702
-Recycle System, Rowan County
Dear'Mr_ Andrews,
This letter is'in.response to.your:letters dated February 10 and 'March 8, 2005, to Mr.. Alan
Klimek, ;P.E., .regarding the subject recycle ;permit. We are writing 'to clarify your responsibilities
under this=permit and to address.the questions that you have raised.
The subject -permit is neither . draft nor proposed and "extensions" for comments about
issued permits -cannot be _given. However, the cover .letter with your permit provided guidance
concerning your right to.request an adjudicatory hearing upon written..request within..30 days of
receipt of the :issued permit. We understand that`_the Office of,Administrative :Hearings -did :not.
receive such .a request :from you. We are aware that'there are a few `factual -errors regarding the
permit system description. These errors will 'be corrected and a corrected copy will be sent to you
in the near future.
The :.following .numbered _points are in :response to your .questions and refer to the
numbered permit. conditions:
#11 .refers to the .level of liquid .contained 'in the settling lagoons. This requirement was also -in
the previous permit i.(WQ0002702 -:item #1:1) .for this facility. It requires a freeboard for all -the
lagoons of no less than :24 inches or two feet at -any time. To property monitor the freeboard of
your lagoons you need to install a gauge in each lagoon to determine the level of the Hquid in
the lagoons. This'is a standard requirementfor permitted systems with lagoons.
#13 refers to the pH of the wash water used to wash the acid .from the bauxite. Past problems
of low pH runoff from the -bauxite fill area came from residual -sulfuric acid left on the bauxite
residuals that were removed -from .the settling lagoons and into the fill area. .
Division of Water Quality / Aquifer Protection Section / Mooresville Regional Office
610 East Center Street, Suite 301, Mooresville, NC 28115
z �JneD,
Phone: [phone] Fax: [phone] Pl��thr��
Internet: http://ciw.ehnr.state.nc.us Nt7

Page 2 of 2
April 22, 2005
#14 refers to the area where you have been putting the bauxite residuals generated by the
recycle system process.
#15 refers to a long range plan for your bauxite residuals. As you know, there have been
problems keeping the bauxite residuals on your site. The Division of Water Quality (Division)
wants to know what you -plan to do with your residuals in the future.
#16 refers to the bauxite residuals that you want to remove from the settling lagoons. Past
problems of low pH runoff from the bauxite fill area came from residual sulfuric acid on the
bauxite residuals removed .from the settling lagoons. The Division wants to make sure that
any -future ,bauxite residuals are sufficiently "washed/rinsed" of any residual sulfuric acid prior
to sending the material to the fill area.
#17 refers to :testing the lagoon liner for integrity. Your standard operating procedures do .not
insure that the lagoon liner is still .intact and that it has not been compromised during previous
cleanouts. _
#18 .refers to the fact .that the .fill area will eventually be filled and ALCHEM -will need an
alternative method of disposal.
#19 refers to the municipal water"line that was installed inside the fill area. Due to past issues
with the bauxite residual fill area erosion, the Division prefers to avoid future erosion issues by
.not allowing:a water line in .the fill area.
429.1s _standard :permit 'lang,,-4qe :should .the -Division decide to classify your wastewater
system. :.. .
431 refers to the -mo'Mori" uency. 'The monitoring .parameters and frequency
hairs been "deemed ner ' �t nt. ,
Should you `hay.F
_
s 1 {704) 663- ermit, please call meat1609:orcontactme lbi
Specialist
regional Office
Cc: Alan :Klimek, P.E. Director
Kim Colson, Supervisor, LAU
David Goodrich, .LAU
Shannon Thornburg, LAU
Central Files
MRO files

Randall F. Andrews
ALCHEM, Inc.
8135 Red Road
Rockwell, NC 28138
Dear Mr. Andrews:
Michael F. Easley, Governor
William G. Ross Jr., Secretary
North Carolina Department of Environment and Natural Resources
September 22, 2005
n
U
Subject:
Alan W. HIimek, P.E. Director
Division of Water Quality
Permit No. WQ0016338
ALCHEM, Inc.
Bauxite Residuals Monofill
Surface Disposal Program
Rowan County
In accordance with your application received on September 30, 2004, we are forwarding herewith
Permit No. WQ0016338, dated September 22, 2005, 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 August t 31,
2010. shall void Permit No. W00016338 issued March 1. 1999, and shall be subject to the conditions and
limitations as specified therein.
This pemik shall be effeetive frem the date ef isstianee unfil Au�st 31, 20 10, shall void Peffl&
•
Please note that Permit Condition I.1 requires the submission of information pertaining to the intended
construction of a structure on the residuals and an evaluation of the material that will serve to support the
structure. Permit Condition I.2 requires an estimate of the present volume of residuals material at the site, and
the estimated volume that will be needed to serve as the foundation pad for the building. This information
should be consistent with the information that is (or has been) orenared to meet the conditions of Permit
WWQ00002702 as noted below.
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.
one
r Carolina
NNaturally
Aquifer Protection Section 1636 Mail Service Center Raleigh, NC 27699-1636 Phone [phone] Customer Service
Internet: http://h2o.enr.state.nc.us 2728 Capital Boulevard Raleigh, NC 27604 Fax (9I9) 715-6048 1-877-623-6748

An earthen berm has since been constructed completely around the fill material area to correct the
problem and to keep the fill on the site. Although the fill is currently contained, the capacity of the enclosed
area 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 that information required in Permit W00002702 is
necessary to evaluate the adequacy of this residuals management program. This permit may be re -opened to
address any concerns developed as a result of the review of this information and the information submitted
under Conditions I.1. and I.2. as well as any additional compliance issues.
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, North
Carolina 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.
Sincerely,
Alan W. Klimek, P.E.
cc: Rowan County Health Department
Mooresville Regional Office, Aquifer Protection Section
Aquifer Protection Section, Central FilesOffiee
Technical Assistance and Certification Unit
LAU Permit Files

NORTH CAROLINA
ENVIRONMENTAL MANAGEMENT COMMISSION
DEPARTMENT OF ENVIRONMENT AND NATURAL RESOURCES
RALEIGH
URFACE 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 II 2, 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 August 31, 2010, shall void Permit No.
WQ0016338 issued March 1, 1999, and shall be subject to the following specified conditions and limitations:
I. PERFORMANCE STANDARDS
Within thirty (30) days of permit issuance, the permittee shall notify the Division, in writing, of
the intended construction dates of the on -site building that is proposed for the facility and will
have residuals augmented with other materials serving as its foundation pad. The permittee shall
also notify the Division, in writing, of the identity of other material(s) used to augment the
residuals, the proportion of these materials to be mixed with the residuals, and the physical
properties (density, proctor strength, etc.) of the blended mixture of material that will serve as the
foundation pad. 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. Within thirty (30) days of permit issuance, the permittee shall inform the Division, in writing, of
the estimated volume of residuals residing on the property. The permittee shall also furnish an
estimate of the volume of residuals that will be needed to serve as the foundation pad for the
proposed on -site building. 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.
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 resurface 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).
•Tt W-M-WWAX KW-IT-IWM RMTI
II. OPERATION AND MAINTENANCE REQUIREMENTS
1. The facilities and application sites shall be properly maintained and operated at all times.
2. No residuals other than the following are hereby approved for use in accordance with this permit:
Permit Volume
Source �� County Number (dry tons/year)
Alchem, Inc. Leaehed Bauxite Rowan WQ0002712 3,000
3. Only residuals thaf 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
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;

y
� 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);
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.
Some of the buffers specified above may not have been included in previous permits for this
surface disposal unit. These buffers are not intended to prohibit or prevent modifications that are
required by the Division to improve performance of the existing unit. These buffers do, however,
apply to modifications of the unit. These buffers do also apply to any expansion or modification
of the unit and apply in instances in which the sale of property would cause any of the buffers now
complied with, for the surface disposal unit, to be violated. The Permittee is advised that any
modifications to the existing surface disposal unit shall require a permit modification.
6. 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.
8: Adequate provisions shall be taken to prevent wind erosion and surface runoff from conveying
pollutants from the residuals treatmept ar ® nto the adjacent property or into any surface waters.
Dt 3Ifigiv
9. No residuals shall b�O�T-ia
i ithin one foot of a seasonal hi water table
and within three feet permanent water table.
V�S I 1 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 unit. If runoff cannot be prevented, a collection system shall be installed with
the capacity to handle runoff from a 24-hour, 25-year storm event. All collected runoff shall be
disposed in a 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.

5. Appropriate measures shall be taken to control public access to the surface disposal unit during
active use and for the 36-month period following closure of the surface disposal unit. Such
controls may include en r and the posting of signs indicating the activities being conducted at
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.
j ✓ 2. Proper records shall be maintained by the Permittee racbirag all aw icat ongactlivities-7fliese
records shall include, but are not necessarily limited to the following information: k
a. location of residuals utilization
.210h,mvolume of residuals disposed in gallons/year, dry tons/year, or kilograms/year
3. 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
5 residuals analysis shall include the following parameters: � �� � �
Arsenic Nickel Magnesium
3 _ Cadmium Selenium Sodium
�. Chromium Zinc Manganese
y Copper Barium pH
�W
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
shall be analyzed to demonstrate that they are non -hazardous under RCRA every five yea s. 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)
m-Cresol (200.0)
o-Cresol (200.0)
p-Cresol (200.0)
Cresol (200.0)
2,4-D (10.0)
Hexachloroethane (3.0)
Lead (5.0)
Lindane(0.4)
Mercury (0.2)
Methoxychlor (10.0)
Methyl ethyl ketone (200.0)
2,4,5-Trichlorophenol (400.0)
2,4,6-Trichlorophenol (2.0)
2,4,5-TP (Silvex) (1.0)
Vinyl chloride (0.2)
A-
5. Laboratory analysis as required by Condition 111.1, Condition 111.2, and Condition 11I.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 21-1.0800 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;
c. Volume of residuals disposed of in the surface disposal unit in gallons per year, dry tons per
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
Conditions44—,I-2-,-IU 2,1113, 1114, and III 46 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
6. Noncompliance Notification:
The Permittee 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.
IV. GROUNDWATER REQUIREMENTS
The COMPLIANCE BOUNDARY for the surface disposal unit 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 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 according to 15A NCAC 2L .0106(d)(2).
J 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
15A NCAC 2L .0106 (d)(1).
f Any groundwater quality monitoring, as deemed necessary by the Division, shall be provided.
V. INSPECTIONS
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 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 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
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 carried out in
accordance with the conditions of this permit, the supporting materials, and in the manner
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. In the event that there is a desire for the facilities to
change ownership or a name change of the Permittee, a formal permit request must be submitted
to the Division accompanied by an application fee, documentation from the parties involved, and
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
Permittee to an enforcement action by the Division in accordance with North Carolina General
Statute 143-215.6A to 143-215.6C.
6. 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).
7. 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.
8. 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. The
Division will accept a submittal that has been prepared in accordance with the document entitled
"Process Design Manual: Surface Disposal of Sewage Sludge and Domestic Septage (EPA/625/R-
95/002)," published by the United States Environmental Protection Agency's Office of Research
and Development. Submit three copies of all information to the NCDENR-DWQ, Aquifer
Protection Section, Land Application Unit, c/o LAU Residuals Program Coordinator, 1636 Mail
Service Center, Raleigh, NC 27699-1636.
Permit issued this the 22"d day of September, 2005
NORTH CAROLINA ENVIRONMENTAL MANAGEMENT COMMISSION
Alan W. Klimek, P.E., Director
Division of Water Quality
By Authority of the Environmental Management Commission
Permit Number WQ0016338

Permit No. WQ0015632
June 20, 2000
ENGINEER'S CERTIFICATION
Partial Final
I, , 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,
Project Name
Location and County
for the 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 this permit, the approved plans and specifications, and other supporting materials.
Signature
Date
Registration No.

OF W ATF9
FILE
Y Michael F. Easley, Governor
COP
O� QG
William G. Ross Jr., Secretary
0
North Carolina Department of Environment and Natural Resources
Alan W. Klimek, P.E., Director
Coleen H. Sullins, Deputy Director
CERTIFIED MAIL
RETURN RECEIPT REQUESTED
Mr. Randall F. Andrews, President
ALCHEM, Inc.
2042 Buie Philadelphus Road
Red Springs, North Carolina 28377
Dear Mr. Andrews:
Division of Water Quality
July 22, 2005
Subject: Application No. WQ0016338
Second Request for Additional Information
ALCHEM, Inc.
Bauxite Residuals Program
Rowan County
This letter is in reference to the above -referenced permit renewal package received on September 30, 2004
for the operation of the residuals program.
On June 8, 2005, the Division of Water Quality (Division) sent you a correspondence containing two items
that needed to be addressed before our review of the permit renewal application package could proceed. A copy of
this correspondence is attached to this letter for your review and reference. Note that a response was required to be
completed and submitted to the Division for review no later than July 8, 2005. As of this date, the Division has not
received a response to this correspondence, nor has the Division received a request for an extension to respond to
this correspondence.
You are hereby notified that all additional information requested in the June 8, 2005 correspondence should
be submitted to the Division no later than August 5, 2005.
If a response is not received by this revised due date, the Division will return your permit application
package as incomplete in accordance with North Carolina General Statute 143-215.1. Please be advised that
operation of a bauxite residuals program without an active permit is a violation of North Carolina General Statute
143-215.1 and may subject the owner/operator of the unit to enforcement action in accordance with North Carolina
General Statute 143-215.6. Civil penalties of up to $25,000 per day per violation may be assessed for failure to
secure a permit required by North Carolina General Statute 143-215.1.
If you have any questions regarding this request, please do not hesitate to contact me at [phone], or
at [e-mail]. Thank you in advance for your cooperation and assistance.
Sincerely,
David Goodrich
Hydrogeologist V
Non -Discharge Permitting Unit " ---
Enclosu .e �, ,
Cc: MTWre F' net, l oresvill Regional Office, quifer Proteetio_ n ection dJUL Z 6
E en u an, oores il` R on 1 fi=ice, Aquifer Pro e ti S c ' n
Rex Gleason, Mooresville Regional Office, Surface Water Protection Section
Permit Application File WQ0016338 NC DENR MRO NorthCar
tur
Aquifer Protection Section 1636 Mail Service Center Raleigh, NC 27699-1636 Phone [phone] Customer Service
Internet: http://h2o.enr.state.ne.us 2728 Capital Boulevard Raleigh, NC 27604 Fax [phone]
An Equal Opportunity/Affirmative Action Employer— 50% Recycled/10% Post Consumer Paper

o�C W ATFRQG
r
Michael F. Easley, Governor
William G. Ross Jr., Secretary
North Carolina Department of Environment and Natural Resources
p Alan W. Klimek, P.E., Director
Coleen H. Sullins, Deputy Director
Division of Water Quality
June 8, 2005
CERTIFIED MAIL
RETURN RECEIPT REQUESTED
Mr. Randall F. Andrews, President
ALCHEM, Inc.
2042 Buie Philadelphus Road
Red Springs, North Carolina 28377
Subject: Application No. WQ0016338
Request for Additional Information
ALCHEM, Inc.
Bauxite Residuals Program
Rowan County
Dear Mr. Andrews:
The Non -Discharge Permitting Unit has conducted a preliminary review of the subject permit application package
and has performed a visit to the subject property. Additional information is required before we may continue our
review. Please address the following items no later than July 8, 2005.
1. In 1998; ALCHEM, Inc. applied for a permit to utilize silica residual from bauxite digestion as a
structural fill material to support an on -site building. To the best of our knowledge, this structure has
not been built. Because the issuance of predicated on the silica material being used as foundation
support for a structure, we need to know when the structure is to be built. Further, we require the results
of a structural evaluation of the material (or the material it is to become, if it is augmented by the
addition of clay or some other material to change its physical properties). If the silica is to becombined
with another substance, we need to be informed of the nature of this substance, as well as its physical
properties (density, proctor strength, etc). We further require an estimate of the volume of fill material
you now have on your site, as well as the estimated volume 3?ou will need to serve as the foundation
pad for the building.
2. The Division requires that we be informed of the identity of the signing official. If this official is not a
corporate official, we will require a delegation letter from a corporate official attesting to the fact that
the signing official is duly authorized to sign.
Please be aware that you are responsible for meeting all requirements set forth in North Carolina rules and
regulations. Any oversights that occurred in the review of the subject application package are still the responsibility
of the applicant. In addition, any omissions made in responding to the above items may result in future requests for
additional information.
Please reference the subject application number when providing the requested information. Three copies ofall
revised and/or additional documentation should be signed, sealed, dated, and submitted to my attention at the address
below.
Please note that failure to provide this additional information on or before the above requested date may result in
your application being returned as incomplete.
None
rthCarolinr
'OVaturldy
Aquifer Protection Section 1636 Mail Service Center Raleigh, NC 27699-1636 Phone [phone] Customer Service
Internet: http://h2o.enr.state.nc.us 2728 Capital Boulevard Raleigh, NC 27604 Fax [phone] . 1-877-623-6748
An Equal Opportunity/Affirmative Action Employer— 50% Recycled/10% Post Consumer Paper

If you have any questions regarding this request, please do not hesitate to contact me at [phone]. You may
also check the future status of this project online at http://112o.enr.state.nc.us/biros/Reports/reportsPerni its. htm1.
Thank you for your cooperation.
Sincerely,
I -
David Goodrich
Hydrogeologist
Non -Discharge Permitting Unit
Cc: Andrew Pitner, Mooresville Regional Office, Aquifer Protection Section
Rex Gleason, Mooresville Regioal Office, Surface Water Protection Section
Permit Application File WQ0001817

�F W ArF9 Michael F. Easley, Governor
�O� QG William G. Ross Jr., Secretary
r1 _ LF,. -m Department of Environment and Natural Resources
O Alan W. Klimek, P.E., Director
Coleen H..]Sulllltifns, Deputy Director
►lf% PeGDT (lam W\I���XV'illtY
June 8, 2005
CERTIFIED MAIL
RETURN RECEIPT REQUESTED
Mr. Randall F. Andrews, President
ALCHEM, Inc.
2042 Buie Philadelphus Road
Red Springs, North Carolina 28377
JU1N g 2005
MOORESVILLE REGIONAL OFFICE
DWO-GROUNDWATER SECTION
Subject: Application No. WQ0016338
Request for Additional Information
ALCHEM, Inc.
Bauxite Residuals Program
Rowan County
Dear Mr. Andrews:
The Non -Discharge Permitting Unit has conducted a preliminary review of the subject permit application package
and has performed a visit to the subject property. Additional information is required before we may continue our
review. Please address the following items no later than July 8, 2005.
In 1998, ALCHEM, Inc. applied for a permit to utilize silica residual from bauxite digestion as a
structural fill material to support an on -site building. To the best of our knowledge, this structure has
not been built. Because the issuance of predicated on the silica material being used as foundation
support for a structure, we need to know when the structure is to be built. Further, we require the results
of a structural evaluation of the material (or the material it is to become, if it is augmented by the
addition of clay or some other material to change its physical properties). If the silica is to be combined
with another substance,. we need to be informed of the nature of this substance, as well as its physical
properties (density, proctor strength, etc). We further require an estimate of the volume of fill material
you now have on your site, as well as the estimated volume you will need to serve as the foundation
pad for the building.
2. The Division requires that we be informed of the identity of the signing official. If this official is not a
corporate official, we will require a delegation letter from a corporate official attesting to the fact that
the signing official is duly authorized to sign.
Please be aware that you are responsible for meeting all requirements set forth in North Carolina rules and
regulations. Any oversights that occurred in the review of the subject application package are still the responsibility
of the applicant. In addition, any omissions made in responding to the above items may result in future requests for
additional information.
Please reference the subject application number when providing the requested information. Three copies of all
revised and/or additional documentation should be signed, sealed, dated, and submitted to my attention at the address
below.
Please note that failure to provide this additional information on or before the above requested date may result in
your application being returned as incomplete.
No thCarolint
IvIItIICQllIff
Aquifer Protection Section 1636 Mail Service Center Raleigh, NC 27699-1636 Phone [phone] Customer Service
Internet: http://h2o.enr.state.nc.us 2728 Capital Boulevard Raleigh, NC 27604 Fax [phone]
An Equal Opportunity/Affirmative Action Employer— 50% Recycled/10% Post Consumer Paper

J
If you have any questions regarding this request, please do not hesitate to contact me at [phone]. You may
also check the future status of this project online at http://h2o enr state nc us/bims/Reports/reportsPermits.htm1.
Thai*,you for,yout cooperation.
Sincerely,
David Goodrich
Hydrogeologist
Non -Discharge Penn fitting Unit
Cc: Andrew Pitner, Mooresville Regional Office, Aquifer Protection Section
Rex Gleason, Mooresville Regioal -Office, Surface Water Protection Section
Permit Application File WQ0001817

WAT
of F9
�O QGy
� r
D 'C
CERTIFIED MAIL
RETURN RECEIPT REQUESTED
Mr. Randall F. Andrews, President
ALCHEM, Inc.
2042 Buie Philadelphus Road
Red Springs, North Carolina 28377
Dear Mr. Andrews:
t
This letter is in reference to the above -referenced permit renewal package received on September 30, 2004
for the operation of the residuals program.
Michael F. Easley, Governor
William G. Ross Jr., Secretary
North Carolina Department of Environment and Natural Resources
Alan W. Klimek P ., Director
MR—* S nsrMi)& Director
July 22, 2005 11M
I F E B- 9 2007
Protecti
Subject: Application No. WQ0016338
Second Request for Additional Information
ALCHEM, Inc.
Bauxite Residuals Program
Rowan County
On June 8, 2005, the Division of Water Quality (Division) sent you a correspondence containing two items
that needed to be addressed before our review of the permit renewal application package could proceed. A copy of
this correspondence is attached to this letter for your review and reference. Note that a response was required to be
completed and submitted to the Division for review no later than July 8, 2005. As of this date, the Division has not
received a response to this correspondence, nor has the Division received a request for an extension to respond to
this correspondence.
You are hereby notified that all additional information requested in the June 8, 2005 correspondence should
be submitted to the Division no later than August 5, 2005.
If a response is not received by this revised due date, the Division will return your permit application
package as incomplete in accordance with North Carolina General Statute 143-215.1. Please be advised that
operation of a bauxite residuals program without an active permit is a violation of North Carolina General Statute
143-215.1 and may subject the owner/operator of the unit to enforcement action in accordance with North Carolina
General Statute 143-215.6. Civil penalties of up to $25,000 per day per violation may be assessed for failure to
secure a permit required by North Carolina General Statute 143-215.1.
If you have any questions regarding this request, please do not hesitate to contact me at [phone], or
at [e-mail]. Thank you in.advance for your cooperation and assistance.
Sincerely,
David Goodrich
I-iydrogeologist
Non -Discharge Permitting Unit
Enclosure
Cc: Andrew Pitner, Mooresville Regional Office, Aquifer Protection Section
Ellen Huffman, Mooresville Regional Office, Aquifer Protection Section
Rex Gleason, Mooresville Regional Office, Surface Water Protection Section
i'ermit ApplcattonFile.W:Q0016338 ;''' NorthCarolint
NaAwllty
Aquifer Protection Section 1636 Mail Service Center Raleigh, NC 27699-1636 Phone [phone] Cust6mer Service
Internet: http://h2o.enr.state.ne.us 2728 Capital Boulevard Raleigh, NC 27604 Fax [phone]
An Equal Opportunity/Affirmative Action Employer - 50% Recycled/10% Post Consumer Paper

Michael F. Easley, Governor
�0, QG William G. Ross Jr., Secretary
North Carolina Department of Environment and Natural Resources
p Alan W. Klimek, P.E., Director
Coleen H. Sullins, Deputy Director
Division of Water Quality
June 8, 2005
CERTIFIED MAIL
RETURN RECEIPT REQUESTED
Mr. Randall F. Andrews, President
ALCHEM, Inc.
2042 Buie Philadelphus Road
Red Springs, North Carolina 28377
Subject: Application No. WQ0016338
Request for Additional Information
ALCHEM, Inc.
Bauxite Residuals Program
Rowan County
Dear Mr. Andrews:
The Non -Discharge Permitting Unit has conducted a preliminary review of the subject permit application package
and has performed a visit to the subject property. Additional information is required before we may continue our
review. Please address the following items no later than July 8, 2005.
1. In 1998, ALCHEM, Inc. applied for a pennit to utilize silica residual from bauxite digestion as a
structural fill material to support an on -site building. To the best of our knowledge, this structure has
not been built. Because the issuance of predicated on the silica material being used as foundation
support for a structure, we need to know when the structure is to be built. Further, we require the results
of a structural evaluation of the material (or the material it is to become, if it is augmented by the
addition of clay or some other material to change its physical properties). if the silica is to be combined
with another substance, we need to be informed of the nature of this substance, as well as its physical
properties (density, proctor strength, etc). We further require an estimate of the volume of fill material
you now have on your site, as well as the estimated volume you will need to serve as the foundation
pad for the building.
2. The Division requires that we be informed of the identity of the signing 6fficial. If this official is not a
corporate official, we will require a delegation letter from a corporate official attesting to the fact that
the signing official is duly authorized to sign.
Please be aware that you are responsible for meeting all requirements set forth in North Carolina rules and
regulations. Any oversights that occurred in the review of the subject application package are still the responsibility
of the applicant. In addition, any omissions made in responding to the above items may result in future requests for
additional information.
Please reference the subject application number when providing the requested information. Three copies of all
revised and/or additional documentation should be signed, sealed, dated, and submitted to my attention at the address
below.
Please note that failure to provide this additional information on or before the above requested date may result in .
your application being returned as incomplete.
NorthCarolint
�Idurld
Aquifer Protection Section 1636 Mail Service Center . Raleigh, NC 27699-1636 Phone [phone] Customer Service
Internet: http://h2o.enr.state.nc.us 2728 Capital Boulevard Raleigh, NC 27604 Fax [phone]
An Equal Opportunity/Affirmative Action Employer — 50% Recycled/10% Post Consumer Paper

If you have any questions regarding this request, please do not hesitate to contact me at [phone]. You may
also check the future status of this project online at http•//h2o enr.state.nc.us/biros/Reports/reportsPermits.htm1.
Thank you for your cooperation.
Sincerely,
L
L�
David Goodrich
Hydrogeologist
Non -Discharge Permitting Unit
Cc: Andrew Pitner, Mooresville Regional Office, Aquifer Protection Section
Rex Gleason, Mooresville Regioal Office, Surface Water Protection Section
Permit Application File WQ0001817

CERTIFIED MAIL
RETURN RECEIPT REQUESTED
Mr. Randall Andrews, President
Alchem, Inc.
8135 Red Road
Rockwell, NC 28138
Dear Mr. Andrews:
Michael F. Easley, Governor
William G. Ross Jr., Secretary
North Carolina Department of Environment and Natural Resources
Alan W. Klimek, P.E. Director
Division of Water Quality
August 13, 2004 NC DEPT, OF ENVIRONMENT
AND NATURAL
RESOURCES
AUG 1 7 2004
MOORESVILLE REGIONAL OFFICE
DWQ-GROUNDbVATER SECTION
Subject: Withdrawal of Permit Application Package
Application Number WQ0016338
Bauxite Residuals Reuse Program
Distribution of Residual Solids (503 Exempt)
Rowan County
Per a request made by you via a fax letter received July 15, 2004, the Non -Discharge Permitting Unit is
returning your permit application requesting a change in residuals sampling frequency.
We understand that such request will be forthcoming in the upcoming permit renewal request. Please fill
out all applicable permit application forms (available online at
http://h2o.enr.state.nc.us/ndpu/ndpugpps.html#Residuals ) completely. Be sure to attach all necessary
documents when submitting for renewal. Also, include at least two years' worth of results showing
parameter levels below the ceiling concentrations for consideration in frequency reduction.
If you have any questions or comments do not hesitate to contact me at [phone] ext 363.
Sincerely,
r
J.R. Josh`
cc: ,Ms-,.-]
Permit Application File
NDPU Files - Returns
No�rthCarolina
Naturally
North Carolina Division of Water Quality 1617 Mail Service Center Raleigh, NC 27699-1617 Phone [phone] Customer Service
Internet: h2o.enr.state.nc.us 512 N. Salisbury St. Raleigh, NC 27604 FAX [phone]
An Equal Opportunity/Affirmative Action Employer — 50% Recycled/10% Post Consumer Paper

NORTH CAROLINA DEPARTMENT OF
ENVIRONMENT AND NATURAL RESOURCES
MOORESVILLE REGIONAL OFFICE
DIVISION OF WATER QUALITY
March 8, 1999
Mr. Randall Andrews
Alchem, Incorporated
813 5 Red Road
Rockwell, NC 28138
Subject: Permit No. WQ0016388
Alchem, Incorporated
Bauxite Residuals Reuse Program
Rowan County, NC
Dear Mr. Andrews:
Our records show that Permit No. WQ0016388 was issued on March 1, 1999 for the
land application of sludge generated by your wastewater treatment facility. The purpose of this
letter is to advise you of the importance of the Permit and the liabilities in the event of failure to
comply with the terms and conditions of the Permit. - If.you have not already done so, it is
requested that you and other appropriate employees thoroughly read the Permit.
The Permit sets forth specific performance standards, operation and maintenance
requirements, monitoring requirements, including annual reporting and groundwater monitoring
activities to be performed by the Permittee, plus general conditions applicable to non -discharge
permits. Failure to comply with the terms and conditions of the permit subjects the Permittee to
enforcement action pursuant to Section 143-215.6 of the North Carolina General Statutes. A
civil penalty of up to $10,000 per violation may be assessed for such violations.
Please note that the subject Permit expires on December 31, 2004. Part VI, Condition
No. 7 of the Permit requires that a renewal request be submitted at least six (6) months prior to
expiration. Also the Permit is non -transferable until such time that the Permittee has requested
a name change to the new Permittee.
As mentioned previously, the purpose of this letter is to advise you of the importance of
your Permit. Please read the Permit and contact this office at 704/663-1699 in Mooresville if you
have any questions or need clarification. We look forward to providing any assistance.
DRG:de
Sincerely, %
D. Rex Gleason, P.E.
Water Quality Regional Supervisor
919 NORTH MAIN STREET, MOORESVILLE, NORTH CAROLINA 28115
PHONE [phone] FAX [phone]
AN EQUAL OPPORTUNITY/AFFIRMATIVE ACTION EMPLOYER- 50% RECYCLED/1 Oq POST -CONSUMER PAPER
rn-

State of North Carolina
Department of Environment
and Natural Resources
Division of Water Quality
James B. Hunt, Jr., Governor
Wayne McDevitt, Secretary
A. Preston Howard, Jr., P.E., Director
March 1, 1999
Mr. Randall F. Andrews
Alchem, Incorporated
8135 Red Road
Rockwell, NC 28138
Dear Mr. Andrews:
A4 • •
NCDENR
NORTH CAROLINA DEPARTMENT OF
ENVIRONMENT AND NATURAL RESOURCES
Subject: Permit No. WQ0016388
Alchem, Incorporated
Bauxite Residuals Reuse Program
Rowan County
In accordance with our telephone discussions, we are forwarding herewith a modification for Permit
No. WQ0016388, dated March 1, 1999, to Alchem, Incorporated for the on -site reuse of a silica residual from
bauxite digestion as a fill material.
This permit shall be effective from the date of issuance until December 31, 2004, shall void Permit
No. WQ0016388 issued January 21, 1999, and shall be subject to the conditions and limitations as specified
therein. The permit modification is to reduce the TCLP monitoring requirement to once every five years, with
the first monitoring required in 1999.
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, P.O. Drawer 27447, Raleigh, NC 27611-7447.
Unless such demands are made this permit shall be final and binding.
If you need additional information concerning this matter, please contact Joe Pearce at [phone]
extension 544.
Sincerely,
A. Preston Howard, Jr., P.E.
cc: Rowan County Health Department
Mooresville Regional Office, Water Quality Section
Technical Assistance and Certification Unit
Non -Discharge Compliance/Enforcement Unit
PO Box 29535, Raleigh, North Carolina 27626-0535 Telephone [phone] Fax [phone]
An Equal Opportunity Affirmative Action Employer 50% recycled/10% post -consumer paper

NORTH CAROLINA
ENVIRONMENTAL MANAGEMENT COMMISSION
DEPARTMENT OF ENVIRONMENT AND NATURAL RESOURCES
RALEIGH
PERMIT FOR THE USE OF RESIDUALS
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 reuse program (as structural fill) on Alchem, Inc.'s property at 8135 Red Road,
Rockwell, North Carolina using approximately 3000 dry tons per year of residuals from the sources listed in
Condition II 2, with no discharge of wastes to the surface waters, pursuant to the application received on
October 23, 1998, 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 December 31, 2004 and shall be subject
to the following specified conditions and limitations:
I. PERFORMANCE STANDARDS
1. 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.
2. 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.
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.
4. In the event that the bauxite residuals reuse program is not operated satisfactorily, including the
creation of nuisance conditions, the Permittee shall cease the reuse operation take any immediate
corrective actions as may be required by the Division of Water Quality (Division).
Written notification must be submitted to the Mooresville Regional Office, [phone], at least
two weeks prior to any use of residuals within 50 feet of any surface waters.

6. No residual shall be used with 100 feet of a potable water supply well unless a clay or synthetic
liner is placed over and under the residual during installation. It will be the responsibility of
Alchem, Inc. to verify the position and integrity of the liner prior to backfill. Under no
circumstances shall residuals be located within 25 feet of a potable water supply well.
H. OPERATION AND MAINTENANCE REQUIREMENTS
No residuals 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 3000
2. The following use of the residual is hereby approved:
- Structural fill on Alchem, Inc.'s property at at 8135 Red Road, Rockwell, North Carolina
3. Adequate provisions shall 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.
4. 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.
5. No residuals shall be used as pipe bedding for sanitary sewer, storm sewer, or potable water lines.
6. 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.
III. MONITORING AND REPORTING REQUIREMENTS
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.
2. Proper records shall be maintained by the Permittee tracking all utilization activities. These
records shall include, but are not necessarily limited to the following information:
a. location of residuals utilization
b. volume of residuals utilized in tons
3. A residual analysis shall be conducted twice per year from the date of permit issuance by the
Permittee. The results of all analysis shall be 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
Phosphorus
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 for the reduction of the frequency of
monitoring for pollutant concentrations, but in no case shall the frequency of monitoring be less
than once per year.
4. A Toxicity Characteristics Leaching Procedure (TCLP) analysis shall be conducted by the
Permittee once every five years, with the first analysis required in 1999. The TCLP analysis shall
include the following parameters (please note the regulatory level in mg/ L in parentheses):
Arsenic (5.0)
Barium (100.0)
Benzene (0.5)
Cadmium (1.0)
Carbon tetrachloride (0.5)
Chlordane (0.03)
Chlorobenzene (100.0)
Chloroform (6.0)
Chromium (5.0)
o-Cresol (200.0)
m-Cresol (200.0)
p-Cresol (200.0)
1,4-Dichlorobenzene (7.5)
Cresol (200.0)
1,2-Dichloroethane (0.5)
2,4-D (10.0)
1,1-Dichloroethylene (0.7)
2,4-Dinitrotoluene (0.13)
Endrin (0.02)
Heptachlor (and its hydroxide) (0.008)
Hexachlorobenzene (0.13)
Hexachloro-1,3-butadiene (0.5)
Hexachloroethane (3.0)
Lead (5.0)
Lindane (0.4)
Mercury (0.2)
Methoxychlor (10.0)
Methyl ethyl ketone (200.0)
Nitrobenzene (2.0)
Pentachlorophenol (100.0)
Pyridine (5.0)
Selenium ( 1.0
Silver (5.0)
Trichloroethylene (0.5)
Tetrachloroethylene (0.7)
2,4,5-Trichlorophenol (400.0)
Toxaphene (0.5)
2,4,6-Trichlorophenol (2.0)
2,4,5-TP (Silvex) (1.0)
Vinyl chloride (0.2)
Three copies of all required monitoring and reporting requirements as specified in conditions III 1,
III 2, lII 3, and III 4 shall be submitted annually on or before March 1 of the following year to the
following address:
NC Division of Water Quality
Water Quality Section
Non -Discharge Compliance/Enforcement Unit
Post Office Box 29535
Raleigh, North Carolina 27626-0535
6. Noncompliance Notification:
The Permittee 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 residuals reuse program which results in the utilization of significant
amounts of residuals which are abnormal in quantity or characteristic.
b. Any failure of the reuse 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.
e. Any spillage or discharge from a vehicle or piping system during transportation of residuals.
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.
3

y
IV. GROUNDWATER REQUIREMENTS
1. The COMPLIANCE BOUNDARY for the reuse site is specified by regulations in 15A NCAC 2L,
Groundwater Classifications and Standards. The Compliance Boundary is for the disposal system
constructed after December 31, 1983 is established at either (1) 250 feet from the waste disposal
area, or (2) 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 immediate remediation action in addition to the penalty provisions applicable under
General Statute 143-215.6A(a)(1).
In accordance with 15A NCAC 2L, a REVIEW BOUNDARY is established around the disposal
systems midway between the Compliance Boundary and the perimeter of the waste disposal area.
Any exceedance of standards at the Review Boundary shall require remediation action on the part
of the permittee.
2. 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 fill sites 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 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 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 treatment 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
This permit shall become voidable unless the residuals reuse program is carried out in accordance
with the conditions of this permit, the supporting materials, and in the manner approved by this
Division.
This permit is effective only with respect to the nature and volume of residuals described in the
application and other supporting data.
3. This permit is not automatically transferable. In the event that there is a desire for the facilities to
change ownership or a name change of the Permittee, a formal permit request must be submitted
to the Division accompanied by an application fee, documentation from the parties involved, and
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.

4. 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.
5. 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).
6. 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.
7. 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.
This permit may be modified, or revoked and reissued to incorporate any conditions, limitations
and monitoring requirements the Division deems necessary in order to adequately protect the
environment and public health.
Permit issued this the First day of March, 1999
NORTH CAROLINA ENVIRONMENTAL MANAGEMENT COMMISSION
A. Preston Howard, Jr., P.E., Director
Division of Water Quality
By Authority of the Environmental Management Commission
Permit Number WQ0016388

[:o:ffo'& atIons..t Other Violations
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....1
Permit jQ0DE6�3 D.t�ll._,.. SOC:F AD:
j� Monitoring Report: --L%=Eli Facility: [Alchiarn Incorporated Residuals R esville County: ER.-::aE:]
eustF_Dt;7,I.Region: _j
-ncorporated--"---1 —JED Inspect. =12105f2006 Details...
Owner. - = F—
Incident:
Facility Reported As: I Compliant (P-)Non-Compliant 0 Not Reported Is signed Report Type:
Area
*Cateqory
I Comment
r Action
EnfNum
NO
Storage
]Violation detected during Inspect...ireuse
area turn_ed_mo
Proceed to Enforceme
PC-2006-0061
Land Application Site
Violation detected during Inspect
Conditions at the time
Proceed to Enforceme
PC-2006-0061
Land Application
time
No Action, BPJ
Land Application Site
lViolation detected during inspect...lConditions
at the time
No Action, BPJ
ae
Initiate hlo'v. Initiate Enforcement Initiate Demand
ai
Fit Cancel
VLOP
I

Fib ED
STATE OF NORTH CAROLINA
COUNTY OF ROBESON ZQI91 M 2 l P 4: 15
OFFICE OF
ALCHEM,INC., h;;:'•`},ISTPA)IVE
Petitioner, )
V. }
NORTH CAROLINA DEPARTMENT OF }
ENVIRONMENT AND NATURAL ' }
RESOURCES, DIVISION OF WATER }
QUALITY, )
Respondent. )
IN THE OFFICE OF .
ADMINISTRATIVE HEARINGS
07 EHR 0439
07 EHR 0177
SETTLEMENT AGREEMENT AND
WITHDRAWAL OF PETITION
The North Carolina .Department of Environment and Natural Resources (hereinafter
`Respondent) and Petitioner, Alchem, Inc., (hereinafier`Pctitionet), 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 the;assessment of civil penalties and costs totaling ton thousand six hundred
seventy-seven dollars and sixty-one cents ($10, 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 et 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:

l . Petitioner will adhere to the following conditions:
'_ Within 3_Q_�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=marmer-eonsistent;
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' thaxf 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 restdiials. 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;2d08 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-

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 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
commercial properties, operational plan including projected estimate of
site life;
kk
f. On or before: _une_7 2�OOg, the Petitioner will install saniplingports 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(3)(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
`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 seventy-seven dollars and sixty-one
-3-

.46
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 Ist day of every month. The first
payment will be due within thirty (30) days of the execution of this Agreement.
The payments shall be by check made payable to the'North Carolina Department
of Environment and Natural Resources'orto`D&Wat the following address:
Stormie D. Forte, Esq.
Attorney General's Office
Environmental Division
9001 Mail Service Center
Raleigh, NC 27699-9001
10 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 eoatained in the
inspection Reports, Notices of Violation, Notices of Additional and/or Continuing Violations,
Findings and becisions 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 Petitionefs compliance with the
terns of this Agreement. Additionally, for the purposes of future violations of the Water Quality
-4-

Statutes and the rules promulgated thereunder, the violations that are the subject of the Notice of
Violation and Civil Penalty Assessment for this matter will be used to document the Petitionees
prior record.
6. . Respondent agrees to accept a payment in the amount of nine thousand dollars
($9,000.00), -in complete satisfaction of the civil penalty assessment dated February 20, 2007,
subject to the terms of this Agreement.
7' 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 of the
Water Quality Statutes and the relevant rules promulgated thereunder, occurring outside of the
February 20, 2007 civil penaq jty 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
nondisehargeability claims that may be asserted by Respondent in any bankruptcy proceeding,
and nothing in this Agreement shall be deemed a waiver of Respondent'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_
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-

WrrHDRAWAL 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
QU TY:
Andrew Pitner, Mooresville
Regional Supervisor, DWQ
Date: . O�
APPROVED AS TO FORM:
ROY COOPER
Attomey,General
B
r•
Stormie D. Forte
Assistant Attorney General
N. C. Department df Justice
Environmental Division
9001 Mail Service Center
Raleigh NC 27699-9001
ALCHEM, INC.:
Randall F. Andrews
Alchem, Inc.
Date:
THE YARBOROUGH LAW FIRM
Attorneys :at L-aW
/. By
H. Addison Winters
Attorney at Law
P. O Drawer 705
Fayetteville NC 28302
-6-

CERTIFIED MAIL
RETURN RECEIPT REQUESTED
Mr. Randall F. Andrews, President
ALCHEM, Inc.
2042 Buie Philadelphus Road
Red Springs, North Carolina 28377
Dear Mr. Andrews:
Michael F. Easley, Governor
William G. Ross Jr., Secretary
North Carolina Department of Environment and Natural Resources
Alan W. Klimek, P.E., Director
Coleen H. Sullins, Deputy Director
Division of Water Quality
July 22, 2005
Subject: Application No. WQ0016338
Second Request for Additional Information
ALCHEM, Inc.
Bauxite Residuals Program
Rowan County
This letter is in reference to the above -referenced permit renewal package received on September 30, 2004
for the operation of the residuals program.
On June 8, 2005, the Division of Water Quality (Division) sent you a correspondence containing two items
that needed to be addressed before our review of the permit renewal application package could proceed. A copy of
this correspondence is attached to this letter for your review and reference. Note that a response was required to be
completed and submitted to the Division for review no later than July 8, 2005. As of this date, the Division has not
received a response to this correspondence, nor has the Division received a request for an extension to respond to
this correspondence.
You are hereby notified that all additional information requested in the June 8, 2005 correspondence should
be submitted to the Division no later than August 5, 2005.
If a response is not received by this revised due date, the Division will return your permit application
package as incomplete in accordance with North Carolina General Statute 143-215.1. Please be advised that
operation of a bauxite residuals program without an active permit is a violation of North Carolina General Statute
143-215.1 and may subject the owner/operator of the unit to enforcement action in accordance with North Carolina
General Statute 143-215.6. Civil penalties of up to $25,000 per day per violation may be assessed for failure to
secure a permit required by North Carolina General Statute 143-215.1.
If you have any questions regarding this request, please do not hesitate to contact me at [phone], or
at [e-mail]. Thank you in advance for your cooperation and assistance.
Sincerely,
David Goodrich
Hydrogeologist
Non -Discharge Permittin i
Enclosure
Cc: Andrew Pitner, Mooresville Re Tonal Office, Aquifer Protection Section JI 2
EUI en Irtl�f a , M rWAR
s�Yill � :gional Li ce, ATqu�ifer Pro�te0tWD. S=fion
Rex Gleason, Mooresville Regional Office, ur ace a er ro ec ton Section
Permit Application File WQ0016338 NC DE11ER MR
DWQ - A tt
_V
Aquifer Protection Section 1636 Mail Service Center Raleigh, NC 27699-1636 Phone [phone] Customer Service
Intemet: http://h2o.enr.state.nc.us 2728 Capital Boulevard Raleigh, NC 27604 Fax [phone]
An Equal Opportunity/Affirmative Action Employer— 50% Recycled/10% Post Consumer Paper
I

OF WATF9 Michael F. Easley, Governor
William G. Ross Jr., Secretary
North Carolina Department of Environment and Natural Resources
p T Alan W. Klimek, P.E., Director
Coleen H. Sullins, Deputy Director
Division of Water Quality
June 8, 2005
CERTIFIED MAIL
RETURN RECEIPT REQUESTED
Mr. Randall F. Andrews, President
ALCHEM, Inc.
2042 Buie Philadelphus Road
Red Springs, North Carolina 28377
Subject: Application No. WQ0016338
Request for Additional Information
ALCHEM, Inc.
Bauxite Residuals Program
Rowan County
Dear Mr. Andrews:
The Non -Discharge Permitting Unit has conducted a preliminary review of the subject permit application package
and has performed a visit to the subject property. Additional information is required before we may continue our
review. Please address the following items no later than July 8, 2005.
1. In 1998, ALCHEM, Inc. applied for a permit to utilize silica residual from bauxite digestion as a
structural fill material to support an on -site building. To the best of our knowledge, this structure has
not been built. Because the issuance of predicated on the silica material being used as foundation
support for a structure, we need to know when the structure is to be built. Further, we require the results
of a structural evaluation of the material (or the material it is to become, if it is augmented by the
addition of clay or some other material to change its physical properties). If the silica is to be combined
with another substance, we need to be informed of the nature of this substance, as well as its physical
properties (density, proctor strength, etc). We further require an estimate of the volume of fill material
you now have on your site, as well as the estimated volume you will need to serve as the foundation
pad for the building.
2. The Division requires that we be informed of the identity of the signing official. If this official is not a
corporate official, we will require a delegation letter from a corporate official attesting to the fact that
the signin- official is duly authorized to sign.
Please be aware that you are responsible for meeting all requirements set forth in North Carolina rules and
regulations. Any oversights that occurred in the review of the subject application pacicage are still the responsibility
of the applicant. In addition, any omissions made in responding to the above items may result in future requests for
additional information.
Please reference the subject application number when providing the requested information. Three copies ofall
revised and/or additional documentation should be signed, sealed, dated, and submitted to my attention at the address
below.
Please note that failure to provide this additional information on or before the above requested_ date may result in
your application being returned as incomplete.
Nont
rrthCarolint
�aiura�ly
Aquifer Protection Section 1636 Mail Service Center Raleigh, NC 27699-1636 Phone [phone] Customer Service
Internet: http://h2o.enr.state.nc.us, 2728 Capital Boulevard Raleigh, NC 27604 Fax [phone]
An Equal Opportunity/Affirmative Action Employer-50% Recycled/10% Post Consumer Paper

If you have any questions regarding thisrequest, please do not hesitate to contact me at [phone]. You may
also check the future status of this project online at htte//h2o enr state.nc.us/biros/Repoits/reportsPemiits.htm1.
Thank you for your cooperation.
Sincerely,
4
L�
David Goodrich
Hydrogeologist
Non -Discharge Permitting Unit
Cc: Andrew Pitner, Mooresville Regional Office, Aquifer Protection Section
Rex Gleason, Mooresville Regioal Office, Surface Water Protection Section
Permit Application File WQ0001817

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