NCG080797_NOV-2022-OC-001 Petroluem Release_20220107

DocuSign Envelope ID: DODB204A-484C-4FOF-BA39-70EB4033CD47
ROY COOPER
Governor
ELIZABETH S. BISER
Secretary
S. DANIEL SMITH
Director
January 7, 2022
NORTH CAROLINA
Enviranmental Quality
CERTIFIED MAIL 7020 1290 0001 1766 8903
RETURN RECEIPT REQUESTED
Southeast Bulk, LLC
Aubrey Edge — Operations Manager
7014 AC Skinner Parkway, Suite 290
Jacksonville, FL 32256
Subject: NOTICE OF VIOLATION AND NOTICE OF INTENT TO ENFORCE
NOV-2022-OC-001 (Incident #202200071)
Unlawful Discharge of Petroleum Products
Mountain Energy Home Heat (288 Lyman Street)
Buncombe County, N.C.
Dear Mr. Edge,
Chapter 143, North Carolina General Statutes (NCGS), directs and authorizes the Environmental
Management Commission (EMC) of the Department of Environmental Quality (DEQ) to protect
and preserve the water and air resources of the State. The Division of Water Resources (DWR)
has the delegated authority to enforce water pollution control laws and regulations.
On December 29, 2021, DWR Staff from the Asheville Regional Office were dispatched to
respond to a release of petroleum product(s) to the French Broad River from a stormwater
drain at the Mountain Energy Home Heat (Mountain Energy) bulk fuel depot, 288 Lyman Street,
in Asheville, NC. This section of the French Broad River (stream index 6-(54.75)) is classified as a
Class B Stream. Petroleum sheen was observed in a stormwater drain located in front of a
warehouse used by Mountain Energy to store lubricants and oils. A small rivulet of oil was
observed discharging to the stormwater drain from a smaller pipe that may originate from
beneath the warehouse. The contents of the warehouse were in complete disarray. Staff
observed eleven full oil drums laying on their sides and a large pool of free product underneath
several of the barrels. Many smaller containers of lubricants/oils were also haphazardly
scattered throughout the warehouse. Petroleum stains were pervasive along the floor of the
warehouse. An open floor drain was observed in the northwest corner of the warehouse with
product containers and petroleum staining in and around the perimeter of the drain. Staff also
observed water leaking from the roof of the warehouse indicating rainfall is routinely entering
D E Q��
North Carolina Department of Environmental Quality I Division of Water Resources
Asheville Regional Office 12090 U.S. Highway 70 1 Swannanoa, North Carolina 28778
NORTH CARIDLINA
o.Permem or �Nv� au,ory 828.296.4500

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Aubrey Edge
January 7, 2022
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the building and potentially transporting exposed free product into Mountain Energy's
stormwater system.
Violations
As a result of the release of petroleum products into the French Broad River, the following
violations are noted:
1. Oil Pollution and Hazardous Substance Control Act — Unlawful Discharge
2. Discharge or Intermixing of Waste Without a Permit
3. Violations of Water Quality Standards
Violation I. Unlawful Discharge
NCGS §143-215.83(a) - It shall be unlawful, except as otherwise provided in this Part, for any
person to discharge, or cause to be discharged, oil or other hazardous substances into or upon
any waters, tidal flats, beaches, or lands within this State, or into any sewer, surface water drain
or other waters that drain into the waters of this State, regardless of the fault of the person
having control over the oil or other hazardous substances, or regardless of whether the
discharge was the result of intentional or negligent conduct, accident or other cause.
Violation II. Discharge or Intermixing of Waste Without a Permit
NCGS § 143-215.1(a)(6) - no person shall do any of the following things or carry out any of the
following activities unless that person has received a permit from the Commission and has
complied with all conditions set forth in the permit: cause or permit any waste, directly or
indirectly, to be discharged to or in any manner intermixed with the waters of the State in
violation of the water quality standards applicable to the assigned classifications or in violation
of any effluent standards or limitations established for any point source, unless allowed as a
condition of any permit, special order or other appropriate instrument issued or entered into
by the Commission under the provisions of this Article.
Violation III. Violation of Water Quality Standards.
The supporting observations indicate violations of:
15A NCAC 02B .0219 (2) - Conditions Related to Best Usage. The waters shall
meet accepted standards of water quality for outdoor bathing places as specified
in Item (3) of this Rule and shall be of sufficient size and depth for primary
recreation purposes. Sources of water pollution which preclude any of these

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Aubrey Edge
January 7, 2022
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uses on either a short-term or long-term basis shall be considered to be violating a
water quality standard;
2. 15A NCAC 02B .0211 (1) — Removal of Best Usage of Class C Waters: aquatic life
propagation and maintenance of biological integrity, wildlife, secondary recreation,
agriculture, and any other usage except for primary recreation or as a source of water
supply for drinking;
3. 15A NCAC 02B .0211 (2) — Removal of Conditions Related to Best Usage of Class C
Waters: the waters shall be suitable for aquatic life propagation and maintenance of
biological integrity, wildlife, secondary recreation, and agriculture. Sources of water
pollution that preclude any of these uses on either a short-term or long-term basis shall
be considered to be violating a water quality standard;
4. 15A NCAC 02B .0211 (12) -Oils, deleterious substances, colored, or other wastes: only
such amounts as shall not render the waters injurious to public health, secondary
recreation, or to aquatic life and wildlife, or adversely affect the palatability of fish,
aesthetic quality, or impair the waters for any designated uses. For the purpose of
implementing this Rule, oils, deleterious substances, colored, or other wastes shall
include substances that cause a film or sheen upon or discoloration of the surface of the
water or adjoining shorelines pursuant to 40 CFR 110.3(a)-(b) which are hereby
incorporated by reference including any subsequent amendments and additions.
Required Response and Corrective Action
This Office requests that you provide a response to this letter in writing. Your response is to be
received by this office no later than thirty (30) days of receipt of this Notice. Your response
should be sent to this Office at the letterhead address. Your response should address the
following items:
1. Immediately investigate and cease all unpermitted discharges of petroleum products to
surface waters from your stormwater system. In particular, you will need to investigate
any and all connections between your warehouse and the stormwater system including
floor drains, underground piping, and runoff from inside the warehouse.
2. Maintain oil -absorbent booms at the stormwater outfall adjacent to the French Broad
River until such time as the source of the petroleum sheen can be identified and abated.
3. Immediately begin providing a weekly status update to this Office until such time as the
source of the petroleum sheen can be identified and abated.
4. Report to this Office assessing the cause, significance, and extent of the release. Please
include a detailed summary of all investigative findings, emergency actions, and any
proposed remedial actions (e.g., changes in stormwater piping).
This Notice of Violation and Notice of Intent to Enforce (NOV/NOI) is being issued for the above
noted violations of NCGS §143-215.823(a), NCGS § 143-215.1(a)(6), and water quality standards

DocuSign Envelope ID: DODB204A-484C-4FOF-BA39-70EB4033CD47
Aubrey Edge
January 7, 2022
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set forth in 15A NCAC 02B .0219 and 15A NCAC 02B .0211. These violations and any future
violations are subject to civil penalties. Pursuant to NCGS § 143-215.88(a), any person who
intentionally or negligently discharges oil or other hazardous substances, or knowingly causes
or permits the discharge of oil in violation of this Part may be assessed of a penalty of up to five
thousand dollars ($5,000) for every act or omission which causes, aids, or abets a violation of
the Oil Pollution and Hazardous Substances Control Act. Pursuant to NCGS § 143-215.6A, a civil
penalty of not more than twenty-five thousand dollars ($25,000) may be assessed by the
Secretary against any person who violates any classification, standard, limitation, or
management practice established pursuant to NCGS §143-214.1, NCGS §143-214.2, or NCGS
§143-215. If any action or failure to act for which a penalty may be assessed under this section
is continuous, the Secretary may assess a penalty not to exceed twenty-five thousand dollars
($25,000) per day for so long as the violation continues, unless otherwise stipulated. For
violators who have not been assessed a civil penalty in the preceding five years, the maximum
penalty is ten thousand ($10,000), or ten thousand ($10,000) per day in the case of continuing
violations.
Thank you for your attention to this matter. This Office requires that the violations, as detailed
above, be abated immediately and properly resolved. This Office is considering enforcement
action regarding these violations. If you wish to provide additional information regarding the
noted violations or discuss overall compliance, please include these topics in your required
response. Your response will be considered in evaluating appropriate enforcement action.
Should you have any questions regarding these matters, please contact Brett Laverty or me at
[phone].
Sincerely,
DocuSigned by:
7E617A38285848C_
G. Landon Davidson, P.G., Regional Supervisor
Water Quality Regional Operations
Asheville Regional Office
ec: ARO file
Caroline La Fond — NC DWM ARO
Stan Aiken — NC DMLR ARO