NCG060387_NOV-2021-FK-0001_20210909

ROY COOPER
Governor
ELIZABETH S. BISER
Secretary
S. DANIEL SMITH NORTH CAROLINA
Director Environmental Quality
September 9, 2021
CERTIFIED MAIL #: 7018 0360 0002 2099 8832
RETURN RECEIPT REQUESTED:
Kevin Kearney, CEO
Entropy Investment Management, LLC
Post Office Box 470157
Charlotte, NC 28247
Subject: Notice of Violation/Notice of Recommendation for
Enforcement
Unpermitted Discharge of Wastewater
Violations of G.S. 143-215.1 (a) and
15A NCAC 02B .0211(6)
Orbit Energy Charlotte, LLC
Mecklenburg County
Tracking No. NOV-2021-FK-0001
Dear Mr. Kearney:
Chapter 143, Article 21 of the North Carolina General Statutes (G.S.) authorizes and directs the Environmental
Management Commission of the Department of Environmental Quality to protect and preserve the water resources of the
State. The Division of Water Resources (DWR) has the delegated authority to enforce adopted water pollution control
rules and regulations.
On August 30, 2021, Charlotte -Mecklenburg Stormwater Services (CMSS) was notified by you that approximately
230,000 gallons of wastewater had overflowed the aeration tank and 30,000 gallons had entered unnamed tributary (ut) to
Derita Branch (via stormwater conveyance system) at the Orbit Energy Charlotte facility located at 600 Johnson Road,
Charlotte/Mecklenburg County. You and/or your contracted operations company (Montrose Environmental) had later
confirmed with the Division of Water Resources (via email dated September 1, 2021) that approximately 195,000 gallons
had overflowed the aeration tank and 35,000 gallons had discharged into the ut to Derita Branch (Class C Waters). CMSS
and Division of Water Resources staff both had measured dissolved oxygen levels in the ut to Derita Branch below the
minimum Fresh Surface Water Dissolved Oxygen Standard for Class C Waters. In addition, CMSS had counted
approximately 1,000 dead fish in the ut to Derita Branch and the main stems of Derita Branch and Little Sugar Creek.
Entropy Investment Management, LLC (EIM) never applied for and/or secured a permit to discharge wastewater into the
ut to Derita Branch.
NORTH
Dep®rlmont of Environmental Onolit
North
Carolina Department of Environmental Quality 1 Division of Water Resources
Mooresville Regional Office 1610 East Center Avenue, Suite 301 I Mooresville, North Carolina 28115
704.663.1699

Kevin Kearney
Page Two
September 9, 2021
As a result of the unpermitted discharge of wastewater into the ut to Derita Branch, EIM was in violation of North
Carolina General Statute (G.S.) 143-215.1(a)/Control of Sources of Pollution — Permits Required and 15A North Carolina
Administrative Code (NCAC) 02B .0211(6)/Fresh Surface Water Dissolved Oxygen Standard for Class C Waters. Please
be advised that G.S. 143-215.6A provides for a civil penalty of not more than twenty-five thousand dollars ($25,000.00)
or twenty-five thousand dollars ($25,000.00) per day when the violation is of a continuing nature, against any person who
is required but fails to apply for or to secure a permit required by G.S. 143-215.1(a) and/or against any person who
violates any classification, standard, limitation, or management practice established pursuant to G.S. 143-214.1,
143-214.2, or 143-215. Penalties may also be assessed for any damage to surface waters of the State that may result
from the violation.
This letter is also to advise you that this Office is considering the initiation of an enforcement action for the discharge of
wastewater into the ut to Derita Branch. The facility must immediately cease the discharge and prevent the recurrence of
any future discharges. In addition, the facility must properly remediate all affected areas impacted by the wastewater
discharge.
It is requested that a written response be submitted to this Office within ten (10) days of receipt of this letter. The
response shall include the actions taken to cease the wastewater discharge and all measures taken to prevent the recurrence
of any future discharges. In addition, all cleanup activities associated with this wastewater discharge must also be included
in the response.
Should you have any questions concerning this report, please do not hesitate to contact Mr. Bell at [phone], or
via email at [e-mail].
Cc: Rusty Rozzelle, CMSS (eCopy)
Sincerely,
DocuSigned by:
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W. Corey Basinger, Regional Supervisor
Water Quality Regional Operations Section
Division of Water Resources, NCDEQ
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NORTH CARIXINA
aeW Amen[ of Environmental Duality
North Carolina Department of Environmental Quality I Division of Water Resources
Mooresville Regional Office 1610 East Center Avenue, Suite 301 I Mooresville, North Carolina 28115
704.663.1699