WQ0017530_PC20210048_20211021

North Carolina Department of Environmental Quality  Division of Water Resources
Asheville Regional Office  2090 US 70  Swannanoa, North Carolina 28778
828-296-4500
ELIZABETH S. BISER
Secretary
S.DANIEL SMITH
Director
ROY COOPER
Governor
NORTH CAROLINA
Environmental Quality
October 21, 2021
CERTIFIED MAIL # 7021 0350 0000 1637 6537
RETURN RECEIPT REQUESTED
Jerry West, Director Operations
Highlands Cove Property Owner’s Association, Inc.
705 Highlands Cove Dr. Box L
Highlands, North Carolina 28741
Subject: Assessment of Civil Penalties for Violations of Permit No. WQ0017530
Highlands Cove WWTP
Enforcement Case No. PC-2021-0048
Jackson County
Dear Mr. West,
This letter transmits notice of a civil penalty assessed against Highlands Cove Property Owner’s
Association Inc. in the amount of $3,200.00 and $132.91 in enforcement costs, for a total of
$3,332.91. Attached is a copy of the assessment document explaining this penalty.
This action was taken under the authority vested in me by delegation provided by the Secretary of
the Department of Environmental Quality and the Director of the Division of Water Resources.
Any continuing violation(s) may be the subject of a new enforcement action, including an additional
penalty.
Within thirty (30) days of receipt of this notice, you must do one of the following:
(1)Submit payment of the penalty, OR
(2)Submit a written request for remission, OR
(3)Submit a written request for an administrative hearing
Option 1: Submit payment of the penalty:
Payment should be made directly to the order of the Department of Environmental Quality (do not include
waiver form). Payment of the penalty will not foreclose further enforcement action for any continuing or
new violation(s). Please submit payment to the attention of:
NC DEQ / DWR / ND Permitting Section
1617 Mail Service Center
Raleigh, North Carolina 27699-1617
DocuSign Envelope ID: C34C11DF-1675-41BB-975C-F1AE9656F568

Page 2 of 5

OR

Option 2. Submit a written request for remission including a detailed justification for such request :
Please be aware that a request for remission is limited to consideration of the five factors listed below as
they may relate to the reasonableness of the amount of the civil penalty assessed. Requesting remission is
not the proper procedure for contesting whether the violation(s) occurred or the accuracy of any of the
factual statements contained in the civil penalty assessment document. Because a remission request
forecloses the option of an administrative hearing, such a request must be accompanied by a waiver of your
right to an administrative hearing and a stipulation and agreement that no factual or legal issues are in
dispute. Please prepare a detailed statement that establishes why you believe the civil penalty should be
remitted, and submit it to the Division of Water Resources at the address listed below. In determining
whether a remission request will be approved, the following factors shall be considered:
(1) whether one or more of the civil penalty assessment factors in NCGS 143B-282.1(b) were
wrongfully applied to the detriment of the violator;
(2) whether the violator promptly abated continuing environmental damage resulting from the
violation;
(3) whether the violation was inadvertent or a result of an accident;
(4) whether the violator has been assessed civil penalties for any previous violations; or
(5) whether payment of the civil penalty will prevent payment for the remaining necessary remedial
actions.
Please note that all evidence presented in support of your request for remission must be submitted in writing.
The Director of the Division of Water Resources will review your evidence and inform you of his decision
in the matter of your remission request. The response will provide details regarding the case status,
directions for payment, and provision for further appeal of the penalty to the Environmental Management
Commission’s Committee on Civil Penalty Remissions (Committee). Please be advised that the Committee
cannot consider information that was not part of the original remission request considered by the Director.
Therefore, it is very important that you prepare a complete and thorough statement in support of your
request for remission.
In order to request remission, you must complete and submit the enclosed “Request for Remission of Civil
Penalties, Waiver of Right to an Administrative Hearing, and Stipulation of Facts” form within thirty (30)
business days of receipt of this notice. The Division of Water Resources also requests that you complete
and submit the enclosed “Justification for Remission Request.” Both forms should be submitted to the
following address:
NC DEQ / DWR / ND Permitting Section
1617 Mail Service Center
Raleigh, NC 27699-1617

DocuSign Envelope ID: C34C11DF-1675-41BB-975C-F1AE9656F568

Page 3 of 5

OR

Option 3. File a petition for an administrative hearing with the Office of Administrative
Hearings:

If you wish to contest any statement in the attached assessment document you must file a petition for an
administrative hearing. You may obtain the petition form from the Office of Administrative Hearings. You
must file the petition with the Office of Administrative Hearings within sixty (60) days of receipt of this
notice. A petition is considered filed when it is received in the Office of Administrative Hearings during
normal office hours. The Office of Administrative Hearings accepts filings Monday through Friday between
the hours of 8:00 a.m. and 5:00 p.m., except for official state holidays. The original and one (1) copy of the
petition must be filed with the Office of Administrative Hearings. The petition may be faxed - provided the
original and one copy of the document is received in the Office of Administrative Hearings within five (5)
business days following the faxed transmission. The mailing address for the Office of Administrative
Hearings is:

Office of Administrative Hearings
6714 Mail Service Center
Raleigh, NC 27699-6714
Telephone [phone] Facsimile: [phone]

A copy of the petition must also be served on DENR as follows:
Mr. William F. Lane, General Counsel
Department of Environmental Quality
1601 Mail Service Center
Raleigh, NC 27699-1601

Please indicate the case number (as found on page one of this letter) on the petition.

Failure to exercise one of the options above within thirty (30) days of receipt of this letter, or within 60 days
of receipt of this letter in the case of filing a petition for an administrative hearing, as evidenced by an internal
date/time received stamp (not a postmark), will result in this matter being referred to the Attorney General’s
Office for collection of the penalty through a civil action. Please be advised that additional penalties may
be assessed for violations that occur after the review period of this assessment.
If you have any questions, please contact Mikal Willmer with the Water Resources staff of the Asheville
Regional Office at 828-296-4686.
Sincerely,

Landon Davidson., P.G, Regional Supervisor
Water Quality Regional Operations Section
Asheville Regional Office
Division of Water Resources, NCDEQ

Attachments: F&D & Justification for Remission Request
Ec: LF

DocuSign Envelope ID: C34C11DF-1675-41BB-975C-F1AE9656F568

Page 4 of 5

JUSTIFICATION FOR REMISSION REQUEST

Case Number: PC-2021-0048 County: Jackson
Assessed Party: Highlands Cove Property
Owner’s Association Inc.
Permit No.: WQ0017530 Amount assessed: $3,332.91

Please use this form when requesting remission of this civil penalty. You must also complete the
“Request For Remission, Waiver of Right to an Administrative Hearing, and Stipulation of Facts”
form to request remission of this civil penalty. You should attach any documents that you believe
support your request and are necessary for the Director to consider in determining your request for
remission. Please be aware that a request for remission is limited to consideration of the five
factors listed below as they may relate to the reasonableness of the amount of the civil penalty
assessed. Requesting remission is not the proper procedure for contesting whether the violation(s)
occurred or the accuracy of any of the factual statements contained in the civil penalty assessment
document. By law [NCGS 133-215.6A(f)] remission of a civil penalty may be granted when one
or more of the following five factors applies. Please check each factor that you believe applies to
your case and provide a detailed explanation, including copies of supporting documents, as to why
the factor applies (attach additional pages as needed).

___ (a) one or more of the civil penalty assessment factors in NCGS 143B-282.1(b) were
wrongfully applied to the detriment of the petitioner (the assessment factors are
included in the attached penalty matrix and/or listed in the civil penalty assessment
document);

___ (b) the violator promptly abated continuing environmental damage resulting from the
violation (i.e., explain the steps that you took to correct the violation and prevent
future occurrences);

___ (c) the violation was inadvertent or a result of an accident (i.e., explain why the
violation was unavoidable or something you could not prevent or prepare for);

___ (d) the violator had not been assessed civil penalties for any previous violations;

___ (e) payment of the civil penalty will prevent payment for the remaining necessary
remedial actions (i.e., explain how payment of the civil penalty will prevent you
from performing the activities necessary to achieve compliance).

EXPLANATION:

DocuSign Envelope ID: C34C11DF-1675-41BB-975C-F1AE9656F568
Page 5 of 5
NORTH CAROLINA DEPARTMENT
OF ENVIRONMENTAL QUALITY
) WAIVER OF RIGHT TO AN
) ADMINISTRATIVE HEARING AND
) STIPULATION OF FACTS
)
)
)
)
STATE OF NORTH CAROLINA
COUNTY OF JACKSON
IN THE MATTER OF ASSESSMENT
OF CIVIL PENALTIES AGAINST
HIGHLANDS COVE PROPERTY
OWNER’S ASSOCIATION INC.
PERMIT NO. WQ0017530 ) FILE NO. PC-2021-0048
Having been assessed civil penalties totaling $3,332.91 for violation(s) as set forth in the
assessment document of the Division of Water Resources dated, October 21, 2021, the
undersigned, desiring to seek remission of the civil penalty, does hereby waive the right to an
administrative hearing in the above-stated matter and does stipulate that the facts are as alleged in
the assessment document. The undersigned further understands that all evidence presented in
support of remission of this civil penalty must be submitted to the Director of the Division of Water
Resources within thirty (30) days of receipt of the notice of assessment. No new evidence in
support of a remission request will be allowed after thirty (30) days from the receipt of the notice
of assessment.
This the ____________________ day of _______________________, 2021.
________________________________
Signature
ADDRESS
________________________________
________________________________
________________________________
________________________________
________________________________
TELEPHONE
________________________________
DocuSign Envelope ID: C34C11DF-1675-41BB-975C-F1AE9656F568
STATE OF NORTH CAROLINA NORTH CAROLINA DEPARTMENT OF
ENVIRONMENTAL QUALITY
COUNTY OF JACKSON
IN THE MATTER OF ASSESSMENT
OF CIVIL PENALTIES AGAINST
) FILE NO. PC-2021-0048
HIGHLANDS COVE PROPERTY )
OWNER’S ASSOCIATION INC. )
)
) FINDINGS AND DECISION
) AND ASSESSMENT OF FOR VIOLATIONS OF PERMIT
NO. WQ0017530 ) CIVIL PENALTIES
Acting pursuant to North Carolina General Statutes (N.C.G.S.) 143-215.6(A) and the delegation provided
by the Secretary of the Department of Environmental Quality (DEQ) and the Director of the Division of
Water Resources, I, Landon Davidson, Regional Supervisor for the Asheville Regional Office (ARO) of
the Division of Water Resources (DWR), make the following:
I.FINDINGS OF FACT:
A.Highlands Cove Property Owner’s Association Inc. (Highlands Cove), owns and operates a 60,000 GPD
wastewater treatment facility and maintains a land easement with the Old Edward Club Properties, LLC
for reclaimed water utilization located in Jackson County, North Carolina.
B.Highlands Cove WWTF consists of a 15,000 gallon flow EQ tank; two 30,000 gallon aeration tanks;
two 300 cubic foot per minute centrifugal blowers, two hopper settling tanks with a total volume of
14,612 gallons; tertiary filters; a 3,198,560 gallon wet weather storage pond; a 331,920 gallon 5-day
upset pond; ultraviolet disinfection with backup tablet chlorinator; a 15,000 gallon sludge holding tank;
a 47.52 acre dedicated reclaimed water utilization spray irrigation area; and all associated piping, valves,
controls and appurtenances.
C.Highlands Cove was issued Permit No. WQ0017530 on April 3, 2020, with an expiration date of January
30, 2026.
D.On September 8, 2021, DWR received verbal notification that heavy rain increased the water elevation
in Grassy Camp Creek at the toe slope of the wet weather storage pond compromising the dam, which
tore the liner and lead to the release of reclaimed water to Grassy Camp Creek (WS-III).
E.On September 9, 2021, Marty Kocot with LandWorks Engineering, PLLC on behalf of Highlands Cove,
provided a written timeline of events summarized below.
1)The water level in the wet weather pond was recorded at 13.8 feet on August 27, 2021, by the ORC
Mark Teague.
2)Heavy rains occurred on August 31, 2021, and September 1, 2021.
3)On September 2, 2021, Highlands Cove staff became aware of the tear in the liner of the pond and
structural damage to the dam. The water level in the pond had dropped to the bottom of the tear at
11.2 feet.
4)On September 3, 2021, emergency and long-term repairs were discussed, and the ORC lowered the
water elevation in the wet weather storage pond to provide two feet of free board below the tear.
DocuSign Envelope ID: C34C11DF-1675-41BB-975C-F1AE9656F568
5)Based on changes in the pond’s water elevation between August 27 and September 2, 2021, Mr.
Kocot estimated approximately 609,260 gallons of reclaimed effluent discharged to Grassy Camp
Creek.
F.Permit WQ0017530, Condition II. 1. requires the subject non-discharge facility shall be effectively
maintained and operated so there are no discharges to surface waters. N.C.G.S. 143-215.1
G.Permit WQ0017530, Condition IV. 10. requires the permittee to report to the Asheville Regional Office
or the Division’s after-hours response contacts, within 24 hours of first knowledge of any failure
resulting in a discharge of reclaimed water directly to surface waters or any unpermitted release of
reclaimed water to land surface greater than or equal to 5,000 gallons.
H.On September 23, 2021, DWR issued a Notice of Violation with Intent to Enforce (NOV-NOI)
NOV-2021 PC-0471 to Highlands Cove Property Owner’s Association Inc., identifying violations of
Permit No. WQ0017530 listed above.
6)The NOV-NOI was received by the Permittee on September 28, 2021.
7)On October 1, 2021, DWR received a written response from Marty Kocot with LandWorks Engineering
on behalf of Highlands Cove in response to the September 23, 2021 NOV-NOI. The responses
provided the following: 1) Circumstances believed to have caused the incident. 2) Immediate
corrective actions to prevent further discharge and stabilize the dam and 3) An explanation for
reporting the incident to DWR seven days after first knowledge of the non-compliance.
8)Staff costs and expenses associated with detecting the violations, defining their nature and extent and
bringing enforcement action totaled $132.91.
Based upon the above Findings of Fact, I make the following:
II.CONCLUSIONS OF LAW:
A.Highlands Cove Property Owner’s Association Inc is a "person" within the meaning of N.C.G.S.
143-215.6(A) pursuant to N.C.G.S. 143-212(4).
B.Permit No. WQ0017530 is required by N.C.G.S. 143-215.1. This permit was issued to Highlands
Cove on April 3, 2020 with an expiration date of January 30, 2026.
C.Highlands Cove violated Permit No. WQ0017530 Condition IV.10. when it failed to notify the
Asheville Regional Office within 24 hours of first knowledge of the non-compliance.
D.Highlands Cove violated Permit No. WQ0017530, Condition II.1., when it failed to effectively
maintain the subject non-discharge facility with no discharges to surface waters.
E. N.C.G.S. 143-215.6A(a)(2) provides that a civil penalty of not more than $25,000.00 may be assessed
against a person who fails to apply for or to secure a permit required by N.C.G.S. 143-215.1, or who
violates or fails to act in accordance with the terms, conditions, or requirements of a permit required by
N.C.G.S. 143-215.1.
F. N.C.G.S. 143-215.6A (b) provides that if any failure to act as required by the rules is continuous, a civil
penalty of not more than $25,000.00 per violation may be assessed for each day the violation continues.
DocuSign Envelope ID: C34C11DF-1675-41BB-975C-F1AE9656F568
G. N.C.G.S. 143-215.3(a)(9) provides that the reasonable costs of any investigation, inspection or
monitoring survey may be assessed against a person who violates any regulations, standards, or
limitations adopted by the Environmental Management Commission or violates any terms or conditions
of any permit issued pursuant to N.C.G.S. 143-215.1, or special order or other document issued
pursuant to N.C.G.S. 143-215.2.
Based upon the above Findings of Fact and Conclusions of Law, I make the following:
III.DECISIONS
Pursuant to N.C.G.S. 143-215.6A in determining the amount of the penalty, I have taken into account the
Findings of Fact and Conclusions of Law and considered all the factors listed in N.C.G.S. 143B-282.1.
Accordingly, Highlands Cove Property Owner's Association Inc. shall be, and hereby is, assessed a civil
penalty of:
$2,000.00
$1,200.00
$3,200.00
$132.91
$3,332.91
for 1 of 1 violations of Permit Condition II.1 by failing to maintain and
operate the subject non-discharge facility so there is no discharge to
surface waters, in accordance with Permit No. WQ0017530.
for 1 of 1 violations of Permit Condition IV.10. by failing to notify the
Asheville Regional Office within 24-hours of first knowledge of the non-
compliance, in accordance with Permit No. WQ0017530.
TOTAL CIVIL PENALTY
Investigation costs assessed
TOTAL AMOUNT DUE
Pursuant to N.C.G.S. 143-215.6A(c), in determining the amount of the penalty I have taken into account the
Findings of Fact and Conclusions of Law and the factors set forth at N.C.G.S. 143B-282.1(b), which are:
(1)The degree and extent of harm to the natural resources of the State, to the public health, or to
private property resulting from the violation;
(2)The duration and gravity of the violation;
(3)The effect on ground or surface water quantity or quality or on air quality;
(4)The cost of rectifying the damage;
(5)The amount of money saved by noncompliance;
(6)Whether the violation was committed willfully or intentionally;
(7)The prior record of the violator in complying or failing to comply with programs over which the
Environmental Management Commission has regulatory authority; and
(8)The cost to the State of the enforcement procedures.
IV.NOTICE:
I reserve the right to assess civil penalties and investigative costs for any continuing violations occurring
after the assessment period indicated above. Each day of a continuing violation may be considered a
separate violation subject to a maximum $25,000.00 per day penalty. Civil penalties and investigative cost
may be assessed for any other rules and statutes for which penalties have not yet been assessed.
DocuSign Envelope ID: C34C11DF-1675-41BB-975C-F1AE9656F568

V. TRANSMITTAL:

These Findings of Fact, Conclusions of Law and Decision shall be transmitted to Highlands Cove Property
Owner’s Association Inc., in accordance with N.C.G.S. 143-215.6(A)(d).

_________________ ___________________________________
(Date) Landon Davidson, P.G., Regional Supervisor
Water Quality Regional Operations Section
Asheville Regional Office
Division of Water Resources, NCDEQ

DocuSign Envelope ID: C34C11DF-1675-41BB-975C-F1AE9656F568
10/21/2021
M
..
m
WIN I
gWe ® p
USE
M
Certified Mall Fee
-.D
$
ri
Extra Services& Feel(aeeckbr.addlee as VMprAua
❑Retum Rewlpl trt o,py) $
C3
❑ Return Remipt telecb rl $
Postmark
C3
❑ Certified Mall Reebbled D"I sry $
Here
C3
❑Atluaaignatura Required $
❑/duttelgnature Reeblcted Dellis,
Postage
to
m
Total Postage and Fees
C3
r
,-a Jerry West, Director Operations
n. , Highlands Cove Property Owners Association ...
M1 705 Highlands Cove Dr. Box L
Hiahlands. NC 28741
■ Complete Items 1, 2, and 3. _r
■ Print your name and address on the reverse
so that we can return the card to you.
■ Attach this card to the back of the mailpiece,
or on the front if space permits.
1. Article Addressed to
A. Signature . er
X ti )W ❑ Agent
Received by (Printed Name) C. Date of
Mei, kecl l� ,�.z
Is ddlivery address different from item 1? ❑ Ye:
If YES, enter dei address below: ❑ No
Jerry We "Director Operations
Highland _Cove Property Owners Association
705 Higir ds Cove Dr. Box L
Highland*AC 28741
ServICe TYPe
❑ re
II"IIIII
IIII
IIIIIII
11111111111111111111111111
II III
IIII
II
I (IIII
IIII
III
Li
❑ It Signature
red Mall
❑ Registered Meli^"
Registered
ult Signature Restricted Delivery
❑ R Istered Mail Restricte,
9590 9402 6652 1060 4050 54
Certified Mail Restricted Delivery
❑ SignatuureConfirmation-
❑ Collect on Delivery
❑ Signature Confirmation
2. Article Number (r/ens/er/mm
❑ Collect on Delivery Restricted Delivery
Restricted Delivery
0350 0000 1637 6537
0 inured Mall Restricted Dalivery
_7021
WQ0017530 (MW)
P9 Form 3811, July 2020 PSN 7530-02-000-9053
PC•2021-0048 JACKSt Domestic Return Receipt