WQ0002284_PC-2021-0034, 0057, 0001 & LV-2021-0333_20220112

ROY COOPER
Governor
EIIZABEI'H S. BISER
secretary
S. DANIEL SMITH
Director
Certified Mall # 7021 1970 0001 1325 0650
Retum Receipt Requested
Ray E Hollowell, Jr
Outer Banks/Klnnakeet Associates, LLC
8351 Fem Lane
Connelly Springs, NC 28612
NORTH CAROLINA
Environmental Quality
January 12, 2022
SUBJECT: Assessment of Civil Penalties
for Violations of NC General Statute (G.S.) 143-215.1(a)(6)
and Non -Discharge Permit No. WQ 0002284
Outer Banks/Kinnakeet Associates, LLC
Kinnakeet Shores WWTP
Case No. PC-2021-0034; PC-2021-0057, LV-2021-0333, and
PC-2022-0001
Dare County
Dear Mr. Hollowell:
In 2021, the North Carolina Division of Water Resources (DWR) issued three dvil penalties to Outer
Banks/IGnnakeet Assodates, LLC. DWR is issuing a fourth dvil penalty based on an inspection performed by
DWR on November 16, 2021 Each of those civil penalties are enclosed and are identified and dated as follows:
• [PC-2021-0034; July 23, 2021]
• [PC-2021-0057; November .17, 2021]
• [LV-2021-0333; November 30, 2021]
• [PC-2022-0001; January 12, 2022]
DWR is (re)-sending/(re)-serving PC-2021-0034, PC-2021-0057, and LV-2021-0333 to you, your attorney, and
your accountant via certified mail and via email. DWR Is also sending/serving PC-2022-0001 to you, your
attorney, and your accountant via certified mail and via email.
As described more fully in the enclosed dvil penalties, you may pay the penalties, request remissions, or file a
petition for a contested case within the applicable timeframe-30 days from receipt. Because your previous
email indicated an Interest in requesting remissions for at least two of the above listed dvil penalties, please
take note of the remission forms that must be completed and submitted to the address below prior to the
applicable deadline:
emrmcaroka Department aftedrorseesiztQualtty I Mikan atlYsier IL-sources
Wasldogton RegfaW Office I 943Washington Square 1411 r Wash!roton. North Camay rea9

Wastewater Branch
Division of Water Resources
1617 Mail Service Center
Raleigh, North Carolina27699-1617
If you should have any questions, please do not hesitate to contact Robert Tankard with the Water
Quality Regional Operations. Section in the Washington Regional Office at 252-946-6481 or via email at
[e-mail].
Sincerely;
Pavil guy
David May, Regional Supervisor
Water Quality Regional Operations Section
Washington Regional Office
Division of Water Resources, NCDEQ
ATTACHMENTS
Cc: Laserfiche'
Mr. Bruce Miller, Accountant for Outer Banks/Kinnakeet Associates, LLC,
Via certified mall -and email (Certified Mall #.70211970 0001 1.325 0667)..
Mr. C. Sean Yacobi, Esq., Counsel for Outer Banks/Kinnakeet Assodates, LLC,
via certified mall and email (Certified Mall # 7021 1970 0001 1325 0681)
Mr. Ray E. Hollowell, Permittee for Outer Banks/KInnakeet Associates, LLC second address in Avon, NC,
via certified mail (Certified Mail # 7021 1970 00011325 0674)
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ROY COOPER
Giro noe
ELIZABETH S. BISER
swankier
S. DANIEL SMITH
Certified Mall # 70201810000159811341
Ray E Hollowell, Jr
Outer Banks/K➢nnakeet Associates LLC
PO Box 34
Connelly Spg, NC 28612
NORTH CAROLINA
G+iM.wnaieu.,
July 23, 2021
SUBJECT: Notice of Violation and Assessment of C3vii Penalty
for Vklations of NC General Statute (G.S.) 143-215.1(a)(6)
and Non -discharge Permit No. WQ0002284
Outer Banks/Kinnakeet Assodates LLC
Kinnakeet Shores WWTP
Case No. PC-2021-0034
Dare County
Dear Mr. Hollowell:
This letter transmits a Notice of Violation and assessment of civil penalty in the amount of $8,656.38
($8,000.00 civil penalty + $656.38 enforcement costs) against Outer Banks/Kinnakeet Associates LLC.
This assessment is based upon the following facts: an inspection of the Kinnakeet Shores WWTP was
conducted on December 18, 2020. This inspection was conducted to verify that the fadlity Is operating in
compliance with the conditions and limitations specified in Non -discharge Permit No. WQ0002284. This
inspection has shown the subject fadlity to be in violation of the conditions and limitations found In
Non -discharge Permit No. WQ0002284. The violations found during the inspection are summarized in
Attachment A to this letter.
Based upon the above facts, I condude as a matter of law that Outer Banks/Klnnakeet Assodates LLC
violated the terms, conditions or requirements of Non -discharge Permit No. WQ0002284 and G.S.
143-215.1(a)(6) in the manner and extent shown in Attachment A. In accordance with the maximums
established by G.S. 143-215.6A(aX2), a dvil penalty may be assessed against any person who violates the
terms, conditions or requirements of a permit required by G.S. 143-215.1(a).
♦.w.C�.f • M1{..m..+(.. a,rer .tt n...o-1 Won 6..w.•
Mn4 .(w 4.✓WiM.r IF Wr1,fMF . larKi [.:I.i7aI

Based upon the above findings of fact and conclusions of law, and in accordance with authority provided by the
Secretary of the Department of Environmental Quality and the Director of the Division of Water Resources, I,
David May, Regional Supervisor, Washington Regional Office hereby make the following dvil penalty
assessment against Outer Banks/KInnakeet Assodates LLC:
$8.000.00 For g of the 1 violations of the conditions and limitations specified in Permit No.
WQ0002284 .
$8.000.00 TOTAL CIVIL PENALTY
$656.38 Enforcement Costs
S8.656.38 TOTAL AMOUNT DUE
Pursuant to 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 G.S. 1438-282.1(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.
Within thlrty (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 lndude
waiver Tam). Payment of the penalty will not foreclose further enforcement action for any continuing or
new violation(s). Pose submit payment to the attention of:
Wastewater Branch
Division of Water Resources
1617 Mall Service Center
Raleigh, North Carolina 27699-1617

f
Option 2: Submit a written request for remission or mitigation 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
our 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 dull penalty assessment factors in NCGS 143B-282.1(b) was wrongfully
applied to the detriment of the petitioner,
(2) whether the violator promptly abated continuing environmental damage resulting from the violation;
(3) whether the violation was Inadvertent or a result of an acddent;
(4) whether the violator had been assessed civil penalties for any previous violations; or
(5) whether payment of the dvil penalty will prevent payment for the remaining necessary remedial actions.
Please note that ail 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
dedslon 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 "Reauest for Remission of Civil
Penalties. Waiver of Right to an Adminishative Hearing. and Stipulation of Facts" form within thirty (30)
clays of receiot`of this notice, The Division of Water Resources also reauests that you complete and
submit the enclosed "Justification for Remission Reauest."
Both forms should be submitted to the following address:
Wastewater Branch
Division of Water Resources
1617 Mail Service Center
Raleigh, North Carolina 27699-1617

Option 3: Pile a petition for an administrative hearing' with the Office of Administrative
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 thirty (30) 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 petition may be flied by
facsimile (fax) or electronic mall by an attached file (with restrictions) - provided the signed original, one (1)
copy and a filing fee (if a filing fee is required by NCGS §150B-23.2) is received in the Office of
Administrative Hearings within seven (7) business days following the faxed or electronic transmission. You
should contact the Office of Administrativve Hearinas with all cuestions reoardina the filino fee and/or the
details of the filing process.
The mailing address and telephone and fax numbers for the Office of Administrative Hearings are as
follows:
6714 Mail Service Center
Raleigh, NC 27699 6714
Tel: [phone]
Fax [phone]
One (1) copy of the petition must also be served on DEQ as follows:
Mr. William F. Lane, General Counsel
Department of Environmental Quality
1601 Mali Service Center
Raleigh, North Carolina 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, 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 anent.

If you have any questions, please contact Robert Tankard with the Division of Water Resources staff of the
Washington Regional Office at [phone] or via email at [e-mail].
Sincerely,
Data AuLf
David May, Regional Supervisor
Water Quality Regional Operations Section
Washington Regional Office
Division of Water Resources, NCDEQ
ATTACHMENTS
Cc Laserfiche Mr. Bruce Miller, electronic copy
Mr. Mark Bissell, electronic copy

JUSTIFICATION FOR REMISSION REQUEST
Case Number: PC-2021-0034
Aid Party: Outer Banks/Kinnakeet Associates LLC
Permit No.: WQ0002284
Canty: Dare
Amount Assessed: M.656.38
Please use this form when requesting remission of this civil penalty. You must also complete the "Request For
Rmissioon, Waiver of Right to an Admmni tmU►e 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 am necessary
for the Director to consider in evaluating 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. Pursuant to N.C.G.S. § 143B-282.1(c), remission of a civil penalty may be granted
only when one or more of the following five factors apply. 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 dvll penalty assessment factors in N.C.G.S. 143B-282.1(b) were wrongfully
applied to the detriment of the petitioner (the assessment factors are listed In the civil penalty
assessment document),
_ (b) the violator promptly abated axntinuing environmental damage resulting from the violation (I.e.,
explain the .stems that you took to correct the violation and prevent fidure occurrences);
(c) the violation was inadvertent or a result of an accident (Le., explain why the violation was
unavoidable or something you could not prevent or prepare liar):
(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:

STATE OF NORTH CAROLINA DEPARTMENT OF ENVIRONMENTAL QUALITY
COUNTY OF DARE
IN THE MATTER OF ASSESSMENT
OF CIVIL PENALTIES AGAINST
Outer Bank,/Kinnakeet Aasodates LLC
linnakeet Shores WWTP
PERMIT NO. WQ0002284
WAIVER OF RIGHT TO AN
ADMINISTRATIVE HEARING AND
STIPULATION OF FACTS
CASE NO. PC-2021-0034
Having been assessed dvil penalties totaling $8,656.38 for violation(s) as set forth in the assessment
document of the Division of Water Resources dated 07/23/2021, the undersigned, desiring to seek remission of the
dull 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 dvil 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 (30) days from the receipt of the notice of assessment.
This the day of • 20
SIGNATURE
ADDRESS
TELEPHONE

ATTACHMENT A
Outer Banksllannakeet Associates LLC
CASE NUMBER: PC-2021-0034
PERMIT NO: WQ0002284
FACILITY: Klnnakeet Shores WWTP
REGION: Washington
COUNTY: Dare
VIOLATION VIOLATION PENALTY
DATE AREA TYPE VIOLATION DESCRIPTION AMOUNT
12/182020 End Use -Infiltration Violation debated during $0.00
Inspection
12/18/2020 End Use -Reuse Violation detected during $0.00
inspection
12/182020 Treatment Activated Sludge Violation detected during $0.00
Inspection
12/182020 Treatment Flow
Violation detected during $0.00
Measurement -Effluent inspection
12/18/2020 End Use -Infiltration Violation detected during Infiltration area is a pond. No $0.00
Inspection vegetation except for algae.
12/18/2020 End Use -Reuse Violation detected during The spray irrigation equipment does
Inspection not work. Operator has more Issues to
resolve than the irrigation system. All
wastewater goes to the infiltration pond.
Last two visits, the turbidity meter has
been malfunctioning. Do not know if
wastewater is diverted when ww does
not meet reclaimed standards.
$0.00
12/182020 End Use -Reuse Violation detected during The spray Irrigation equipment does
inspection not work Operator has more issues to
resolve than the irrigation system. All
wastewater goes to the Infiltration pond.
Last two visits, the turbidity meter has
been malfunctioning. Do not know if
wastewater la diverted when ww does
not meet redaimed standards.
$2,000.00
12/182020 Treatment Clarifiers Violation detected during Both clarifiers were observed druing the
inspection Inspection and not working. Pictures are
attached at the end of the Inspection
report.
$0.00
12/18/2020 Treatment Clarifiers Violation detected during Both clarifiers were observed druing the
Inspection Inspection and not working. Pictures are
attached at the end of the Inspection
report.
$2,000.00
12/1812020 Standby Power
Violation detected during the ORC stated that the generator $2,000.00
inspection wasn't currently working.
12/182020 Treatment Filters
Violation detected during The ORC stated that the travefng bridge $0.00
inspection filter Is not work
12/182020 Treatment Filters
Violation detected during The ORC stated that the traveling bridge $2,000.00
inspection filter Is not work.

ATTACHMENT A.
Outer Banke/IQnnakset Associates LLC
CASE NUMBER: PC-2021-0034
PERMIT NO: W00002284
FACILITY: Knnakeet Shores WWTP
REGION: Washington
COUNTY: Dare
VIOLATION
DATE
AREA
VIOLATION
TYPE
VIOLATION DESCRIPTION
PENALTY
AMOUNT
12/1812020 Treatment Violation detected during There are several treatment units not
Inspection working the day of the inspection. the
units not working are both clarifiers, the
traveling bridge fitter.
$o.00

1
ROY COOPER
Governor
EUZABETH S. BISER
Secretary
S. DANIEL SMITH
Director
Certified Mall # 7020 1810 0001 5980 9409
Return Receipt Requested
Ray E Hollowell, Jr
Outer Banks/Kinnakeet Associates LLC
8351 Fern Ln
Connelly Spring, NC 28612
NORTH CAROLINA
Environmental Quality
November 17, 2021
SUBJECT: Notice of Violation and Assessment of Civil Penalty
for Violations of NC General Statute (G.S.) 143-215.1(a)(6)
and Non -discharge Permit No. WQ0002284
Outer Banks/Innakeet Associates LLC
Kinnakeet Shores VVW P
Case No. PC-2021-0057
Dare County
Dear Mr. Hollowell:
This letter transmits a Notice of Violation and assessment of civil penalty in the amount of $14,994.67
($14,500.00 civil penalty + $494.67 enforcement costs) against Outer Banks/Kinnakeet Associates LLC.
This assessment is based upon the following facts: an inspection of the Kinnakeet Shores WWTP was
conducted on August 17, 2021. This inspection was conducted to verify that the fadlity is operating in
compliance with the conditions and limitations specified in Non -discharge Permit No. WQ0002284. This
inspection has shown the subject facility to be in violation of the conditions and limitations found in
Non -discharge Permit No. WQ0002284. The violations found during the inspection are summarized in
Attachment A to this letter.
Based upon the above facts, I conclude as a matter of law that Outer Banks/Kinnakeet Associates LLC
violated the terms, conditions or requirements of Non -discharge Permit No. WQ0002284 and G.S.
143-215.1(a)(6) in the manner and extent shown in Attachment A. In accordance with the maximums
established by G.S. 143-215.6A(a)(2), a civil penalty may be assessed against any person who violates the
terms, conditions or requirements of a permit required by G.S. 143-215.1(a).
North Cavil. Department of rlteo-onsne„tal Quaety ; DfKlon of later Resources
Washington Regional Off ice 443 Wathtrrym Square/tali I Woshlnpuat Earth rxdlnr 27889
LSL9.tbb4M

t
Based upon the above findings of fact and conclusions of law, and in accordance with authority provided by the
Secretary of the Department of Environmental Quality and the Director of the Division of Water Resources, I,
David May, Regional Supervisor, Washington Regional Office hereby make the following civil penalty
assessment against Outer Banks/Kinnakeet Associates LLC:
$14,500.00 For 6 of the B. violations of the conditions and limitations specified in Permit No.
WQ0002284 .
$14,500.00 TOTAL CIVIL PENALTY
$494.67 Enforcement Costs
$14,994.67 TOTAL AMOUNT DUE
Pursuant to 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 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.
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 notindude
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:
Wastewater Branch
Division of Water Resources
1617 Mail Service Center
Raleigh, North Carolina 27699-1617

3
Option 2: Submit a written request for remission or mitigation 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
foredoses 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) was wrongfully
applied to the detriment of the petitioner;
(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 had 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
derision 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)
days of receipt of this notice. The Division of Water Resources also requests that you complete and
submit the endosed "Justification for Remission Request,"
Both forms should be submitted to the following address:
Wastewater Branch
Division of Water Resources
1617 Mail Service Center
Raleigh, North Carolina 27699-1617

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 thirty (30) 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 petition may be filed by
facsimile (fax) or electronic mail by an attached file (with restrictions) - provided the signed original, one (1)
copy and a filing fee (if a filing fee is required by NCGS §150B-23.2) is received in the Office of
Administrative Hearings within seven (7) business days following the faxed or electronic transmission. You
should contact the Office of Administrative Hearings with all Questions regarding the filing fee and/or the
details of the filing process.
The mailing address and telephone and fax numbers for the Office of Administrative Hearings are as
follows:
6714 Mail Service Center
Raleigh, NC 27699 6714
Tel: [phone]
Fax: [phone]
One (1) copy of the petition must also be served on DEQ as follows:
Mr. William F. Lane, General Counsel
Department of Environmental Quality
1601 Mail Service Center
Raleigh, North Carolina 27699-1601
Please indicate the case number (as found on page one of this letter) on the petition.
Failure to exerdse one of the options above within thirty (30) days of receipt of this letter, as evidenced by an
intemal 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 Sarah Toppen with the Division of Water Resources staff of the
Washington Regional Office at [phone] or via email at [e-mail].
Sincerely,
O
David May, Regional Supervisor
Water Quality Regional Operations Section
Washington Regional Office
Division of Water Resources, NCDEQ
ATTACHMENTS
Cc: Laserfiche
Mr. Bruce Miller, electronic copy
Mr. Mark Bissell, electronic copy

JUSTIFICATION FOR REMISSION REOUEST
Case Number: PC-2021-0057
Assessed Party: Outer Banks/Kinnakeet Associates LLC
Permit No.: WQ0002284
County: Dare
Amount Assessed: $1,4,994.67
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 Fads"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 evaluating 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. Pursuant to N.C.G.S. § 143B-282.1(c), remission of a civil penalty may be granted
only when one or more of the following five factors apply. 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 N.C.G.S. 143B-282.1(b) were wrongfully
applied to the detriment of the petitioner (the assessment factors are listed in the civil penalty
assPcsment 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 (Le.,
explain how payment of the civil penalty will prevent you from performing the activities necessary to
achieve compliance).
EXPLANATION:

STATE OF NORTH CAROLINA DEPARTMENT OF ENVIRONMENTAL QUALITY
COUNTY OF DARE
IN THE MATTER OF ASSESSMENT
OF CIVIL PENALTIES AGAINST
Outer Banks/Kinnakeet Associates LLC
Kinnakeet Shores WWTP
PERMIT NO. WQ0002284
WAIVER OF RIGHT TO AN
ADMINISTRATIVE HEARING AND
STIPULATION OF FACTS
CASE NO. PC-2021-0057
Having been assessed dvil penalties totaling $14,994.67 for violation(s) as set forth in the assessment
document of the Division of Water Resources dated November 17, 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
undeisldnds 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 (30) days from the receipt of the notice of
assessment.
This the day of , 20
SIGNATURE
ADDRESS
TELEPHONE

ATTACHMENT A
Outer Banks/Klnnakeet Associates LLC
CASE NUMBER: PC-2021-0057
PERMIT NO: WQ0002284
FACILITY: Kinnakeet Shores WWTP
REGION: Washington
COUNTY: Dare
VIOLATION
DATE
AREA
VIOLATION
TYPE
VIOLATION DESCRIPTION
PENALTY
AMOUNT
8/17/2021 Miscellaneous Questions Permit conditions violation Permittee failed to install monitoring $2,000.00
wells.
8/17/2021 Miscellaneous Questions Permit conditions violation Permittee failed to repair damaged roof. $0.00
8/17/2021 Miscellaneous Questions Permit conditions violation Permittee failed to submit required $500.00
site map
8/17/2021 End Use -Reuse Violation detected during
inspection
Irrigation equipment is not operational.
WaRO believes all water is going to the
irrigation/high rate pond. Required
monitoring wells have not yet been
installed.
$3,000.00
8/17/2021 Treatment Clarifiers Violation detected during
inspection
No flow was going over the weirs at the
time of inspection. Both clarifiers are
broken. One is drained and parts have
been robbed to work on second clarifier.
Second clarifier is broken and sweep
arrns are not functional. Floating sludge
is visible in the clarifier.
$3,000.00
8/17/2021 Treatment Flow Violation detected during
ORC stated flowmeter is in need of $0.00
Measurement -Effluent inspection repair.
8/17/2021 Standby Power Violation detected during
inspection operable.
ORC stated that generator is not $3,000.00
8/17/2021 Treatment Fitters Violation detected during
inspection
Travelling bridge filter is not operational.
ORC states it will only operate in hand
mode, however, when on site the bridge
would only travel a limited distance.
$3,000.00

ROY COOPER
corerrwr
EUZABETH S. BISER
seerrrmy
S. DANIEL SMITH
Dierrrar
Certified Mail # 70192970000121401821
Return Receipt Requested
November 30, 2021
Ray E Hollowell, Jr
Outer Banks/Kinnakeet Associates LLC
8351 Fem Ln
Connelly Spg, NC 28612
SUBJECT: Notice of Violation and Assessment of Civil Penalty
for Violations of Non -discharge Permit No. WQ0002284
Outer Banks/Kinnakeet Associates LLC
Kinnakeet Shores WWTP
Case No. LV-2021-0333
Dare County
Dear Mr. Hollowell:
This letter transmits a Notice of Violation and assessment of civil penalty in the amount of $1,950.00 ($1,850.00 civil
penalty + $100.00 enforcement costs) against Outer Banks/Kinnakeet Associates LLC.
This assessment is based upon the following facts: a review has been conducted of the Non -Discharge Monitoring
Report (NDMR) submitted by Outer Banks/Kinnakeet Associates LLC for the month of July 2021. This review has
shown the subject facility to be in violation of the limitations and/or monitoring requirements found in Non -discharge
Permit No. WQ0002284. The violations, which occurred in July 2021, are summarized in Attachment A to this letter.
Based upon the above facts, I conclude as a matter of law that Outer Banks/Kinnakeet Associates LLC violated the
terms, conditions or requirements of Non -discharge Permit No. WQ0002284 in the manner and extent shown in
Attachment A. In accordance with the maximums established by G.S. 143-215.6A(a)(2), a civil penalty may be assessed
against any person who violates the terms, conditions or requirements of a permit required by G.S. 143-215.1(a).
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{
Based upon the above findings of fact and conclusions of law, and in accordance with authority provided by the
Secretary of the Department of Environmental Quality and the Director of the Division of Water Resources, I, David
May, Regional Supervisor, Washington Regional Office hereby make the following civil penalty assessment against Outer
Banks/Kinnakeet Associates LLC:
$500.00 2 of 2 violations of the Permit Daily Maximum for BOD, 5-Day (20 Deg. C) per the limits
established in Permit No. WQ0002284
$500.00 2 of 2 violations of the Permit Daily Maximum for Nitrogen, Ammonia Total (as N) per the limits
established in Permit No. WQ0002284
$750.00 1 of 1 violations of the Permit Monthly Average for Nitrogen, Ammonia Total (as N) per the limits
established in Permit No. WQ0002284
$25.00 For 1 of the 1 failures to submit monitoring reports or portions of monitoring reports in violation of
Permit No. WQ0002284.
$50.00 For 2 of the 2 failures to submit monitoring reports or portions of monitoring reports in violation of
Permit No. WQ0002284.
$25.00 For 1 of the 1 failures to submit monitoring reports or portions of monitoring reports in violation of
Permit No. WQ0002284.
$1,850.00 TOTAL ClYIL PENALTY
$100.00 Enforcement Costs
$1,950.00 TOTAL AMOUNT DUE
Pursuant to 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 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.

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:
Wastewater Branch
Division of Water Resources
1617 Mail Service Center
Raleigh, North Carolina 27699-1617
Option 2: Submit a written request for remission or mitigation 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) was wrongfully
applied to the detriment of the petitioner,
(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 had 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) 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:
Wastewater Branch
Division of Water Resources
1617 Mail Service Center
Raleigh, North Carolina 27699-1617
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 thirty (30) 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 petition may be filed by facsimile (fax) or electronic mail by an attached file (with restiictions) - provided
the signed original, one (1) copy and a filing fee (if a filing fee is required by NCGS §150B-23.2) is received in the
Office of Administrative Hearings within seven (7) business days following the faxed or electronic transmission. You
should contact the Office of Administrative Hearings with all questions regarding the filing fee and/or the details of the
filing process.
The mailing address and telephone and fax numbers for the Office of Administrative Hearings are as follows:
6714 Mail Service Center
Raleigh, NC 27699 6714
Tel: [phone]
Fax: [phone]
One (1) copy of the petition must also be served on DEQ as follows:
Mr. William F. Lane, General Counsel
Department of Environmental Quality
1601 Mail Service Center
Raleigh, North Carolina 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, 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 Sarah Toppen with the Division of Water Resources staff of the Washington
Regional Office at [phone] or via email at [e-mail].
Sincerely,
David May, Regional Supervisor
Water Quality Regional Operations Section
Washington Regional Office
Division of Water Resources, NCDEQ
ATTACHMENTS
Cc: Laserfiche
NC Utilities Commission, Mike Franklin, [e-mail]

JUSTIFICATION FOR REMISSION REQUEST
Case Number: LV-2021-0333
Assessed Party: Outer Banks/Kinnakeet Associates LLC
Permit No.: WQ0002284
County: Dare
Amount Assessed: $1,950.00
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
evaluating 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. Pursuant to N.C.G.S. § 143B-282.1(c), remission of a civil
penalty may be granted only when one or more of the following five factors apply. 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 N.C.G.S. 143B-282.1(b) were wrongfully applied to the
detriment of the petitioner (the assessment factors are 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:

STATE OF NORTH CAROLINA DEPARTMENT OF ENVIRONMENTAL QUALITY
COUNTY OF DARE
IN THE MAHER hR OF ASSESSMENT
OF CIVIL PENAL 1'1ES AGAINST,
Outer Banks/Kinnakeet Associates LLC
Kinnakeet Shores WWTP
PERMIT NO. WQ0002284
WAIVER OF RIGHT TO AN
ADMINISTRATIVE HEARING AND
STIPULATION OF FACTS
CASE NO. LV-2021-0333
Having been assessed civil penalties totaling $1,950.00 for violation(s) as set forth in the assessment document of the
Division of Water Resources dated November 30, 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 (30) days
from the receipt of the notice of assessment.
This the day of , 20
SIGNATURE
ADDRESS
TELEPHONE

ATTACHMENT A
Outer Banks/Klnnakeet Associates LLC
CASE NUMBER: LV-2021-0333
PERMIT: WQ0002284
FACILITY: Kinnakeet Shores WWTP
REGION: Washington
COUNTY: Dare
LIMIT VIOLATION(S)
SAMPLE LOCATION:
Violation Report
Date Month/Yr Parameter
Unit of Limit Calculated % Over Violation Penalty
Frequency Measure Value Value Limit Type Amount
7/7/2021 7-2021 BOD, 5-Day (20 Deg. Weekly mg/1 15 18 20.0 Daily
C) Maximum
Exceeded
$250.00
7/13/2021 7-2021 BOD, 5-Day (20 Deg. Weekly mg/1 15 16 6.7 Daily
C) Maximum
Exceeded
$250.00
7/1/2021 7-2021 Nitrogen, Ammonia Weekly mg/I 6 7.7 28.3 Daily
Total (as N) Maximum
Exceeded
$250.00
7/7/2021 7-2021 Nitrogen, Ammonia Weekly mg/I 6 8.5 41.7 Daily
Total (as N) Maximum
Exceeded
$250.00
7/31/2021 7-2021 Nitrogen, Ammonia Weekly mg/1 4 5.48 37.0 Monthly
Total (as N) Average
Exceeded
$750.00
REPORTING VIOLATION(S)
SAMPLE LOCATION:
Violation Report
Date Month/Yr Parameter
Unit of Limit Calculated % Over Violation Penalty
Frequency Measure Value Value Limit Type Amount
7/31/2021 7-2021 Chloride (as CI)
3Xyear mg/1
Parameter
Missing
$25.00
7/31/2021 7-2021 Solids, Total 3 X year mgll
Dissolved- 180 Deg.0
Parameter
Missing
$25.00
7/31/2021 7-2021 Oxygen, Dissolved 3 X year mg/I Parameter
(DO) Missing
$25.00
7/31/2021 7-2021 Oxygen, Dissolved 3 X year mg/1 Parameter
(DO) Missing
$25.00

ROY COOPER
GoNenmr •
ELITAMTH S. BISEi Smeniary
S DNYIEL Simi . - -
. oMecror -
Certified Mali # 70211970000113250650
Esturnikolpillrauggftd
January 12, 2022.
Ray E Hollowell, Jr
Outer Banks/IGnnakeet Assodates LLC
8351 tern Ln
Connelly Spg, .NC 28612
SUBJECT: Notice of Violation and Assessment of Civil Penalty
for Violations of NC General Statute (G.S.) 143-215.1(a)(6)
and Non -discharge Permit No. WQ0002284
Outer Banks/Kinnakeet Associates LLC
Kinnakeet Shores WWTP
Case No. PC-2022-0001
Dare County.
Dear Mr. Hollowell:
This letter transmits a Notice of Violation and assessment of civil penalty in the amount of $15,994.67
($15,500.00 civil. penalty + $494.67 enforcement costs). against Outer Banks/Kiinnakeet Associates LLC.
This assessment is based upon the following facts: an inspection of the Kinnakeet Shores WWTP was
conducted on November 16, 2021. This inspection was conducted to verify that the fadlity is operating in
compliance.wfth the conditions and limitations specified in Non -discharge Permit No. WQ0002284. This
inspection has shown the subject facility to be in violation of the conditions and limitations found in
Non -discharge Permit No. WQ0002284. The violations found during the inspection are summarized in
Attachment A to this letter.
Based upon the above facts, I conclude as a matter of law that Outer Banks/IGnnakeet Associates LLC
violated the terms, conditions or requirements of Non -discharge Permit No. WQ0002284 and G.S.
143-215.1(a)(6) in the manner and extent shown in Attachment A. In accordance with the maximums
established by. G.S. 143-215.6A(a)(2), a civil penalty may be assessed against any person who violates the
terms, conditions or requirements of a permit required by G.S. 143-215.1(a).
VaddgiOn h/meIOSn I%0WaivklenSwam lhl l fl4it.poo.?oda GrimM

Based:uponthe above findings of fact and conclusions of law, and in acoordanoe with authority provided by the.
Secretaryof the Department of Environmental Quality and :the Director of the. Division of Water Resources, I;
David May, Regional Supervisor, Washington Regional Office hereby make the following civil penalty
assessment against Outer Banks/Kinnakeet Assoaates LLC
$15,500.00 For 6`of.the $ violations of the condttions:and IImttations spedfied in Permit No.:
WQ0002284
$15,S00.Q0 TOTAL CIVIL PENALTY'
$494.67 Enforcement :Costs
$15,994.67 TOTAL AMOUNT DUE
Pursuant to O.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 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 waterquantity 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
:EnvironmentalManagement Commission hasregulatory authority; and
(8) , The 'cost to the State of the enforcement procedures.
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 notindude
waiver form): .Payment of the penalty will not foredose further enforcement action for any continuing or
new violation(s): Please submit payment to theattention of: '
Wastewater Branch
Division of Water Resources
1617 Mail Service Center
Raleigh, North Carolina 27699-1617

Option 2: :. Submit "a written request for remission or, mitigation includinga 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 amountof the civil penalty assessed. Requesting remission
Is not the proper procedure for contesting whether the violation(s) occurred or the accuracy of any ofthe
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 remisslon request will be approved, the following factors shall be considered:
(1) whether one or more of the civil penalty assessment factors in NCGS 1436-282.1(b) was wrongfully
applied to the detriment of the petitioner;
(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 had been assessed civil penalties for any previous violations; or
(5) whether payment of the avil 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, andprovision 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.•
1n order to request remission, you must complete and submit the enclosed "Request for Remission of Ovil
Penalties, Waiver of Right to an Administrative Hearing, and Stipulation of Facts" form within thirty (30)
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:
Wastewater Branch
Division of Water Resources
1617 Mall Service Center
Raleigh, North Carolina 27699-1617

Option 3: file a petition foran administrative hearing with the Office of Administrative
}Iearinas:
If you wish to contest any statement in the attached assessment dbcument you must file a petition for an
administrative hearing. You mayobtain the petition form from the Office of. Administrative Hearings. You
must file the petition with the Office of Administrative Hearingswithin thirty (30) days of receipt of this
notice. A petition is considered filedwhen 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.rn:; except for offidaF state holidays. The petition may be filed by
facsimile (fax) or eledTonic mailby an attached file (with restrictions) provided the signed original, one:(1)
copy and a filing fee (if a filing fee is required by NCGS §150B-23.2) is received in the Office of
Administrative Hearings within seven (7) business days following the faxed or electronic transmission. You
should contact the Office of Administrative Hearings with: all auestions regarding the filing fee and/or the
details of the filing process:
The mailing address and telephone and fax numbers for the Office of Administrative. Hearings are as.
follows:
6714..Mall Service Center
Raleigh, NC ° 27699 6714
Tel [phone].
Fax: [phone]
One (1) copy of the .petiti.on must.also be served on. DEQ. as follows:
Mr. William F. Lane, General Counsel.
Department of Environmental:Quality.
1601 Mail Service Center.
Raleigh, North Carolina 2769971601
Please Indicate the case number (as found on page one of thls.letter) on the petition.
Failure tbexercise one of the options above within thirty (30) days of receipt of this letter, as evidenced by an
intemal 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 reviewperiod of this assessment.

If you have any questions, please contact Robert Tankard with the Division of Water Resources staff of the.
Washington Regional Office at [phone] or via email at [e-mail].
Sincerely,
David May, Regional Supervisor
Water Quality Regional Operations Section
Washington Regional Office
Division of Water Resources, NCDEQ
ATTACHMENTS
WQS Washington Regional Office - Enforcement File
NON -DISCHARGE Compliance/Enforcement Unit - Enforcement File

,USTIFICATION FOR REMISSION. REQUEST
Case Number: .PC-2022-0001
Assessed Party: Outer Banks/IGnnakeet Associates LLC
Permit .No.: WQ0002284
County: Dare
Amount Assessed: $15,994.67
Please use this form when requesting remission of this dvil penalty. You must also complete the "Request For
Remission, Waiver of Right to an Administrative Hearing, and Stipulation ofFacts''form to request remission of
this civil penalty. You should attach any documents that you believe support your request and are necessary
-. for the. Directorto consider in evaluatingyour 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 dvil penalty assessed. Requesting remission is not the proper procedure for contesting
whetherttieviolation(s) occurredor the accuracy of any of the factual statements contained In thecivil penalty
assessment document. Pursuant to N,C:GS. § 1438-282.1(c), remission of a civil penalty may be granted
only when one or more of the following five factors apply. 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 N.C.G.S. 143B-282.i(b) were wrongfully
applied to the detriment of the petitioner. (the assessment factors are listed in the dill penalty
ass sinent document);
(b) the violator promptly abated continuing environmental damage resulting from the violation (i.e.,
explain the steps that yvu: took tocorrectme violation and prevent future o vrrenc>°s);
(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 howpEayrnent of the civil penalty will prevent youfromperforming_ the activities necessary to
achieve compliance).
EXPLANATION;

STATE.OF NORTH CAROLINA • _ DEPARTMENT.OF ENVIRONMENTAL QUALITY •
COUNTY OF.DARE..
IN THE -MATTER OF ASSESSMENT
OF .CIVIL PENALTIES AGAINST
Outer Banks/Klnnakeet Associate s LLC
Kinnakeet Shores WWTP.
PERMIT NO. WQ0002284
WAIVER OF. RIGHT.TO AN •
• ADMINISTRATIVE •HEARING -AND
: STIPULATION:OF FACTS- -
Having been assessed civil penalties totaling •$15,994,67 for violation(s) as set forth, In the assessment document of
the Division of Water Resources dated January 12,- 2022, 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
stipulatethat 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 withiri thirty. (30) days of receipt of thenotice of assessment.. No new evidence in
support of a remission request will be allowed after (30) days from the receipt of the notice of assessment.
This the day of 20
SIGNATURE
ADDRESS.
TELEPHONE

ATTACHMENT A
Outer Banks/Kirmakeet Associates LLC
CASE NUMBER: PC-2022-0001
PERMIT. NO: WQ0002284..:.
FACILITY:. Kinnakeet Shores VVWT'P.
REGION: Washington
COUNTY:. Dare
VIOLATION
DATE
AREA
VIOLATION
TYPE
VIOLATION DESCRIPTION
PENALTY
AMOUNT
,11/15/2021 Miscellaneous .Questions... ; Violation.detected.during .
inspection .-
Permittee failed .to repair damaged roof.
$0.00
11/16/2021 Treatment Clarifiers : Violation detected during Clarifier sweeps and return pumps did • $3,000.00
inspection not work. Solids had built up in. clarifier.
1.1/16/202.1: Treatment
Violation detected during Clarifiers,. Treatment Filters, Generator;
inspection and. Spray ImgationSystem failed to
Work. Solids have filled the clarifier and
tertiary filter.
$0.00.
11/16/2021 End Use -Reuse:
Violation detected during Irrigation system does not work. All
inspection water goes to the storage pond and
infiltrates. Monitoring wells have not
been installed.
$3,000.00
:.1.1/16/2021 Standby Power Violation detected during Operator did not make an attempt to
0
inspeotion startthegenerator. Stated itwould hot
start
$3,000.00
11/16/2021 Miscellaneous Questions Violation detected during Perrnittee failed to install monitoring $3,000.00
wells..
inspection
11/16/2021 Miscellaneous Questions Violation detected during Permittee failed to submit site map.
inspection
$500.00
11/16/2021 Treatment Filters Violation detected during Tertiary filter doesnot work. Solids have $3,000.00
'built up in.filter.
inspection