NC0051969_Compliance Agreement_20220107

DocuSign Envelope ID: 9C906ECC-350B-4810-9CF0-8B5EFE2BE179
NORTH CAROLINA
ENVIRONMENTAL MANAGEMENT COMMISSION
COUNTY OF NEW HANOVER
IN THE MATTER OF
NORTH CAROLINA
NPDES PERMIT NC0051969
HELD BY
CASTLE HAYNE HEALTH HOLDINGS LLC )
COMPLIANCE AGREEMENT
Pursuant to provisions of North Carolina General Statute § 143-215.3(a)(6), this Compliance Agreement
is entered into by Castle Hayne Health Holdings LLC, herein referred to as the Permittee, and the North
Carolina Environmental Management Commission, an agency of the State of North Carolina created by
N.C. General Statute § 143B-282, and hereinafter referred to as the Commission:
1. The Permittee and the Commission hereby agree to the following findings:
(a.) The Permittee holds North Carolina NPDES permit NC0051969 for operation of the Castle
Hayne Health Holdings LLC's Castle Creek Memory Care WWTP and for making an outlet
therefrom for the discharge of treated effluent to an unnamed tributary to Prince George
Creek, Class C; Sw waters of this State in the Cape Fear River Basin.
(b.) Effluent limits included as terms of NPDES permit NC0051969 have been established as those
concentrations of pollutants that may be discharged into the receiving stream without causing
applicable water quality standards to be contravened.
(c.) The Castle Creek Memory Care WWTP has been noncompliant with NPDES permit
NC0051969 in the manner and to the extent described in Attachment A (Table 1) to this
Agreement. Reported violations of effluent limits have persisted from October 2018 through
the May 2020 reporting period. Further noncompliance with permit limits is anticipated for a
brief period while solutions are being evaluated.
(d.) Castle Hayne Health Holdings LLC was assessed penalties for these violations and continues
to have outstanding fees totaling $6,783.00. Monitoring reports from October 2019,
December 2019, and January through May 2020 also included violations which the regional
office has not yet issued penalties for. Anticipated penalty amounts for these unassessed
violations total an additional $6,712.50 (not including enforcement costs) Once assessed, these
additional penalties would bring the total outstanding balance to $13,495.50 (Attachment A —
Table 1).
(e.) Chloride effluent limit violations could be associated with the water softener, which contains
Sodium Chloride, used to remove iron from the adult care home's well water.
(£)
Copper effluent limit violations could be associated with the copper piping in the facility
leaching into the wastewater, which may be exacerbated by the softened water.

DocuSign Envelope ID: 9C906ECC-350B-4810-9CF0-8B5EFE2BE179
Castle Hayne Health Holdings, LLC Compliance Agreement
NC0051969
p. 2
2. Based upon the above findings, the Permittee and the Commission agree to the implementation of
the following schedule (amended from the original compliance agreement executed 9/25/2020):
(a.) The Permittee will continue discharging and monitoring effluent parameters as outlined in
NPDES permit NC0051969.
(b.) To address high chloride levels, the permittee has re-routed softener backwash to a storage
tank, to be disposed of in a combination of land application, off -site hauling, and treatment.
(c.) The permittee has not yet achieved compliance through Phase 1 trials by the target completion
date (updated Attachment A, Table 2).
(d.) The permittee wishes to continue chemical injection trials in Phase 1.5 alongside Phase 2.
(e.) The permittee must complete Phase 2 of copper removal efforts by the required completion
date, February 28, 2022 (updated Attachment A, Table 2).
3. In order to facilitate resolution of the matters of outstanding civil penalties and unassessed
violations documented in Attachment A (Table 1), the Commission and Castle Hayne Health
Holdings LLC agreed to settle the above described penalties and violations, for the total amount of
$8,097.30 (60% of unpaid fees, including penalties that had not yet been assessed through May
2020). Payment was made by check to the North Carolina Department of Environmental Quality
within 15 days of the execution of the original Agreement (executed by the Division on 9/25/2020).
Full payment of the settlement amount constitutes complete satisfaction of all outstanding civil
penalties assessed prior to the execution of this Agreement and resolve all unaddressed violations
occurring up to the end of the May 2020 reporting period.
4. Nothing in this Agreement relieves the Permittee of its duty to abide by the terms of NPDES permit
NC0051969. Noncompliance with the terms of the NPDES may subject the Permittee to the
assessment of civil penalties during the time this Agreement is in effect. However, the Division will
use discretion in its consideration of civil penalty assessments for violations of permit limits that
occur during the life of the Agreement.
5. Failure to comply with the terms of this Agreement may subject the Permittee to the assessment of
additional civil penalties pursuant to Part II, Section B (2.) (the "Duty to Mitigate" condition) of
NPDES permit NC0051969.
6. Because this is an Agreement between the Commission and the Permittee, neither party will file a
petition for a contested case or for judicial review concerning its terms.
7. The Permittee may request an extension/modification to this Agreement. Such request must be
made in writing to both the Wilmington Regional Office, Water Quality Operations Section and the
Division of Water Resources' Central Office. The request must include reasons for the
extension/modification and state when compliance with the NPDES permit will be achieved. Any
extension/modification must be approved in writing by the Director of the Division of Water
Resources or his designee in order to be effective.
8. This updated Agreement shall expire April 14, 2022.
9. If project completion and compliance with permit requirements is not achieved by the expiration of
this agreement, the remaining fees settled in this agreement ($5,398.20) will be due, along with any

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Castle Hayne Health Holdings, LLC Compliance Agreement
NC0051969
p. 3
new penalties resulting from continued noncompliance.
For the Castle Hayne Health Holdings LLC
(LF
Charles E. Trefzger Jr.
Owner
Castle Hayne Health Holdings LLC
Date 01 /04/2022
For the North Carolina Environmental Management Commission
DocuSigned by:
worata sa-LilA.4
For
- E3ABA14AC7DC434...
Jeffrey O. Poupart
Section Chief
Water Quality Permitting Section
North Carolina Division of Water Resources
for the Chair of the Commission
1/7/2022
Date

DocuSign Envelope ID: 9C906ECC-350B-4810-9CF0-8B5EFE2BE179
ATTACHMENT A
Compliance Agreement
Castle Hayne AL Holdings, LLC — NPDES Permit NC0051969
Table 1 Summary of penalties assessed against Castle Hayne AL Holdings, LLC for violation of permit effluent limits from
October 2018 — present.
Monitoring Case Number Civil Penalty Enforcement
Report Amount Cost
Total Amount
Outstanding
Balance
May-20 n/a $500.00 n/a not assessed $500.00*
Apr-20 n/a $500.00 n/a not assessed $500.00*
Mar-20 n/a $1,300.00 n/a not assessed $1,300.00*
Feb-20 n/a $1,300.00 n/a not assessed $1,300.00*
Jan-20 n/a $1,200.00 n/a not assessed $1,200.00*
Dec-19 n/a $975.00 n/a not assessed $975.00*
Nov-19 LV-2020-0049 $2,250.00 $141.00 $2,391.00 $2,391.00
Oct-19 n/a $937.50 n/a not assessed $937.50*
Sep-19 LV-2020-0038 $1,375.00 $141.00 $1,516.00 $0.00
Aug-19 LV-2019-0314 $800.00 $141.00 $941.00 $941.00
Jul-19 LV-2019-0223 $450.00 $137.75 $587.75 $587.75
Jun-19 LV-2019-0213 $1,300.00 $137.75 $1,437.75 $1,437.75
Apr-19 LV-2019-0164 $1,000.00 $137.75 $1,137.75 $0.00
Mar-19 LV-2019-0151 $900.00 $137.75 $1,037.75 $1,037.75
Jun-18 LV-2018-0218 $250.00 $137.75 $387.75 $387.75
Total Outstanding $6,783.00
Total Outstanding
(including
unasessed
violations)
$13,495.50
*No penalties have yet been issued for limit and monitoring violations in monitoring reports from the months of October
2019 and December 2019-May 2020. The anticipated penalty amounts have been calculated by Wilmington Regional Offices
and are included in this compliance agreement.

DocuSign Envelope ID: 9C906ECC-350B-4810-9CF0-8B5EFE2BE179
Table 2 Project timeline based on compliance agreement progress report dated June 08, 2021. As long as Project End dates
are achieved, target completion dates within phases may remain flexible.
Task Description Target Completion Date
PHASE 1- Chemical Injection at Water Treatment Plant
Completed
PHASE 1.5 - Additional trials
Complete Trial of Tetrapotassium pyrophosphate and Adjustment of pH
7/31/2021
10/14/2021
PHASE 2 - Precipitation of Filtration at Wastewater Treatment Plant
Development/submission of Precipitation or Filtration Plan (P/F)
Approval of P/F Plan
Hiring of Technician (Plumber or Specialist)
Schedule System Improvement
Obtaining Supplies for Wastewater P/F Plan
Installation of Wastewater
Testing P/F Improvements
6/18/2021
8/31/2021
10/7/2021
10/21/2021
12/15/2021
12/29/2021
1/28/2022
Fine -Tuning of Chemical + P/F Process and proposed PROJECT END 2/28/2022
1
Required completion date with 45-day grace period
4/14/2022