WQCSD0732_Letter dated 3-19-2021 Response_20210419

Direct Dial: 919.981.4091
[e-mail]
April 19, 2021
Via E-mail and US Mail
Scott Vinson, Regional Supervisor
NCDEQ Division of Water Resources
Raleigh Regional Water Quality Section
3800 Barrett Drive
Raleigh, NC 27608
Re: Paliouras Enterprises LLC
Response to NOV

Dear Mr. Vinson,
Our firm represents Paliouras Enterprises LLC (“Paliouras) in connection with potential leakage
from an aerial sewer line over Bolin Creek in Chapel Hill. The line services the building located
at 1400 and 1404 Franklin, which is owned by Paliouras.
Given the facts set forth below, Paliouras Enterprises requests that no penalty be issued in this
matter. The Company is committed to achieving full compliance and working cooperatively with
the Town and DEQ, and has been and will continue to work toward that end as quickly as
possible.
Paliouras did not receive your March 19, 2021 letter until March 29, 2021. The letter was sent
to the wrong address and the company that received the letter did not contact Paliouras until
late in the day on Friday, March 26. Jim Paliouras picked up the letter that following Monday,
March 29. Because Paliouras had already repaired the pipe in question, they did not
understand the letter was urgent. I contacted Mitchell Hayes when I was asked to review the
letter, and Mr. Hayes agreed to a 10-day extension for response.
Although your March 19 letter indicates that your office received notice of the leak from the
Town of Chapel Hill on February 9, 2021, your summary of the incident indicates that the leak
started February 16th and everything we’ve seen suggests the 16th is correct.
Background as understood by Paliouras
Paliouras had no knowledge of, and no communication with your office, the Town of Chapel Hill,
or any other person regarding the leak until Friday, February 19th. Eric Elliott of Enterprise
Rent-a-Car received an e-mail from Erin Deck on February 19th informing him (Mr. Elliott) of a
leak in the pipe running from the building in which Enterprise was located. Mr. Elliott then
reached out to Paliouras Enterprises, as landlord of the building, to let them know of his
communication with Ms. Deck.
It is our understanding that no one at Enterprise saw leaking from the pipe. Over the weekend,
someone from Paliouras went to the Bolin Creek area where the pipe is located to determine if
Scott Vinson, Regional Supervisor
NCDEQ Division of Water Resources
April 19, 2021
Page 2
they could identify any leak from the pipe. They observed the pipe was covered by a large
fallen tree and did not see any leakage. Enterprise and MinGa Restaurant, the other tenant in
the building, stopped using their sewer services once notified of the leak.
On Monday, February 22nd, Johnny Jacobs (a Chapel Hill Enforcement Officer) contacted Mr.
Elliott of Enterprise to say that repairs would be required. Mr. Elliott asked for guidance on what
work needed to be done since Paliouras had not seen any leak over the weekend. Mr. Jacobs
indicated an emergency repair would be allowed and referred Mr. Elliott to Jason Salat and
Sayer Brosnahan with the Town of Chapel Hill.
Later on the 22nd, Mr. Salat e-mailed to say that he visited the site that morning. He speculated
that leaking was not observed over the weekend because the businesses attached to the sewer
line had been ordered not to use the sewer facilities. Nick Paliouras met Mr. Salat that same
day. They observed that a large tree had fallen from the opposing bank of the creek (assumed
to be Town property) onto the sewer line housing structure –while there was a good chance the
tree caused the damage to the pipe, the tree needed to be removed as soon as possible so
repairs could take place. Accessing the pipe was difficult and dangerous even without the tree,
but was physically not possible with the tree in the way. Mr. Paliouras asked Jason for
guidance on fixing the pipe and requested help from the Town for removal of the tree. The
following day (2/23), Mr. Salat recommended that Paliouras contact Nick Rogers for advice on
the repair.
On Wednesday, February 24th, Nick Paliouras met Danny Curtis, a plumber, at the site to
evaluate the extent of the damage and needed repairs. Mr. Curtis was able to climb up to look
at the damage. The cast iron pipe had been cracked where the tree fell on it and there was
some minor leakage. They were able to cut enough of the tree away from the pipe to provide
some space to work, although the area was still dangerous. Due to the additional equipment
required and his schedule, Mr. Curtis planned to return to fix the pipe the following Monday.
Paliouras made the decision on Thursday, February 25th that they could not wait until Monday,
and scheduled Express Drain (Dickie Atkinson) to come later that day. Mr. Atkinson indicated
that when he arrived at the site there were a few drips from the joints and a crack on top of the
pipe. Although the pipe was older, he believes that the tree hitting the pipe and lateral housing
created the crack and jolted the joints enough for them to start leaking. Following his initial
evaluation, Mr. Atkinson talked with Nick Rogers at the Town to confirm what would be
acceptable for a temporary repair. He made the temporary repair that day in accordance with
the Town’s instructions, replacing the portions of the pipe that had the crack and compromised
joints. Once the temporary repair was complete, Paliouras informed Mr. Salat that the work had
been done. Mr. Salat indicated a signed written statement from Drain Express, stating the pipe
had been repaired and was no longer leaking, would be required before the rental agency and
restaurant could begin using their sanitary sewer fixtures. The written statement was provided
to Mr. Salat. Paliouras has scheduled the permanent repair of the pipe with Drain Express.
History of the Pipe System
Paliouras installed the aerial sewer collection system in 1971. Since that time, the company has
regularly visited the site to conduct visual inspections of the system to identify concerns. More
Scott Vinson, Regional Supervisor
NCDEQ Division of Water Resources
April 19, 2021
Page 3
focused inspections have been conducted following heavy rains or windstorms, at least one of
which resulted in adding to the fortifications holding the aerial structure.
The company is in regular contact with the tenants and has responded immediately to any drain
or other issues. Professionals have been engaged on a few occasions to clear obstructions in
the pipe.
Paliouras has never been informed of the regulatory requirements, including the requirement to
have a map of the collection system and a maintenance plan. When Drain Express performs
the scheduled permanent repair of the pipe, Paliouras will work with Drain Express to prepare
the map, put a maintenance plan in place, and schedule regular inspections and documentation
of those inspections.
There has been significant confusion regarding upkeep of the area below the aerial collection
system. Based on communications with the Town and OWASA, Paliouras understood that any
portion of the ravine under the pipe is owned by the Town and the Company was not authorized
to make changes in the area. Paliouras has maintained its side of the ravine, clearing brush
and cutting back growth that might impact the pipe. Paliouras plans to have conversations with
the Town to discuss responsibility and authority for maintenance of the area below the pipe, and
will ensure that the area below the pipe will be maintained going forward. There have been
conversations regarding removal of the remaining portion of the fallen tree. Paliouras had
asked the Town to remove the tree since it is located on Town property but will move forward
with removing the rest of the tree to minimize any risk of further damage to the pipe system.
Consideration of Factors
Paliouras does not have an estimate of the volume that leaked from the pipe or may have
reached the creek, but the information available to the company is that there was only some
periodic, minor dripping from the pipe between February 16th and February 25th,when it was
fixed. Given that between February 16th (when they believe the tree fell and the drips likely
began) and February 19th (when the tenants stopped using their sanitary sewer facilities),
Enterprise had limited volume (one restroom and few employees) and MinGa was only
doing takeout with limited employees, the volume that leaked from the pipe was not
significant. Since the pipe spans the ravine, it is likely that only a small portion of whatever
leaked would have reached the surface water.
For quite some time, there have been several people living under the bridge near the pipe.
They have been observed using the creek as a restroom and for bathing. There also is
significant trash in the creek.
Paliouras is not aware of any impact to public health from the minor leak or of any impact on
wildlife or recreational areas.
Paliouras has addressed any issues that have been identified related to the pipe system in
the past and has not received previous notice of any non-compliance issues.
The leak was not intentional and Paliouras repaired the pipe as soon as they learned the
pipe was damaged, were able to get the fallen tree cut back to make it impossible to get to
the pipe, and got a plumber to the site to repair the pipe. The cost of the repair, including
the permanent repair, will be in excess of $15,000.00.
Paliouras acted as quickly as circumstances allowed once they became aware of the fallen tree
and resulting damage to the pipe. The Company was not aware of the reporting requirements,
Scott Vinson, Regional Supervisor
NCDEQ Division of Water Resources
April 19, 2021
Page 4
and by the time they confirmed that there was leaking from the pipe the time for reporting had
passed. They did not receive your letter until over a month after the repairs had been made.
The company had the pipe temporarily repaired in accordance with instruction from the Town of
Chapel Hill and, until they received your letter, understood that they had done everything they
were required to do.
Paliouras Enterprises will remove the rest of the fallen tree, and will work with a sewer
professional and the Town of Chapel Hill to put the requirements of the regulation in place and
ensure the easement below the pipe system is maintained to allow full access to the area for
inspections and repairs. If requested, the Company will provide a copy of the maintenance plan
and a map of the collection system to your office.
Thank you for your consideration. If you have questions or need additional information, please
feel free to contact me by phone [phone]) or e-mail ([e-mail]).
Best regards,
Ramona C. O’Bryant
cc: Mr. Mitchell Hayes
Paliouras Enterprises