WQ0002284_PC-2021-0057_20211222

December 22, 2021
Mr. David May, Regional Supervisor
Water Quality Regional Operations Section
Division of Water Quality, NCDEQ
Washington Regional Office
Washington, North Carolina
Subject:
Mr. May;
Remission and Mitigation Request of Assessment of Civil Penalties
For Violations of NCGS 143-215.1 (a)(6)
Outer Banks/Kinnakeet Associates, LLC
Kinnakeet Shores WWTP
Permit No. WQ0002284
Case No. PC-2021-0057
Dare County
I am writing to request remission or mitigation of civil penalties assessment for Outer Banks/Kinnakeet
Associates LLC that was hand delivered to the Outer Banks/Kinnakeet Associates, LLC registered contact,
Bruce Miller, on December 1, 2021.
The Outer Banks/Kinnakeet Associates, LLC annual operating income is insufficient to pay annual
operating expenses. This deficit of expenses over the past decade have required repairs to be subsidized
from outside funding. The Outer Banks/Kinnakeet Associates, LLC does not have funds to make repairs
identified in the assessment or pay assessment of civil penalties. Outside funding has been obtained for
repairs. Assessment of penalties will take away from the outside funds attained to fix/repair treatment
components necessary to correct treatment violations of the Kinnakeet Shores WWTP.
On December 12, 2021, we responded to an Nov from a November 9, 2021, inspection. This NOV
response provided a detailed timeline of repairs and costs that we are executing for the Kinnakeet
WWTP. We are submitting this response as supporting documentation of costs of repairs and lead time
of repair parts and material. Assessing Outer Banks/Kinnakeet Associates, LLC now while this repair plan
is executed, will only retard the repairs and potentially cause further harm as indicated in the Letter of
Assessment.
Please find attached Notice of Violation Response December 12, 2021
Please find attached the purchase order from EVOQUA for the clarifier gear reducer
Please find attached estimate for new media for the filter.

The OuterBanks/Kinnakeet Associates, LLC does not generate enough funds from utility revenues to pay
ongoing normal operating expenses and have not applied for a rate increase in 20 plus years and are
still operating off the original assigned rate. We working to apply for a rate increase with
the North Carolina Utility Commission. If approved, a rate increase will provide an operating income
sufficient to maintain the KKWWTP. We will seek an interim rate change while we are working through
the rate increase process.
I respectfully request a remission of the $14,994.67 in civil penalties as the penalties will prevent us
from making repairs needed.
If there is any additional information needed, please let me know.
Best regards,
Ray Hollowell
Outer Banks/Kinnakeet Associates, LLC