20180765 Ver 5_WP-2022-0001 F&D_20220225

DocuSign Envelope ID: FE6C59F2-286B-4D16-B47F-570EFE05E75C
STATE OF NORTH CAROLINA
COUNTY OF JACKSON
IN THE MATTER OF: )
)
)
FOR VIOLATIONS OF: )
15A NCAC 02B .0211 (2), )
15A NCAC 02B .0231 (c), and )
15A NCAC 02H .0501 and .0502 )
Daniel Communities LLC
NORTH CAROLINA DEPARTMENT OF
ENVIRONMENTAL QUALITY
CASE NO. WP-2022-0001
FINDINGS AND DECISION
AND ASSESSMENT OF
CIVIL PENALTIES
Acting pursuant to North Carolina General Statute (hereby known as G.S.) 143-215.6A,
I, Jeffrey O. Poupart, of the Division of Water Resources (hereby known as DWR),
make the following:
I.
FINDING OF FACT
A. On May 12, 2020, DWR issued an Individual 401 Water Quality
Certification, WQC004212, DWR #2018-0765 Version 4, to Daniel
Communities LLC for construction activities at the High Hampton
Redevelopment Project, located off NC Highway 107, south of Cashiers,
Jackson County, NC.
A. Daniel Communities LLC is a company organized in Delaware and
existing under the laws of the State of North Carolina.
B. On July 13, 2020, ClearWater Environmental Consultants (hereby known
as CEC), on behalf of Daniel Communities LLC, submitted an after -the -
fact modification request for the DWR Individual 401 Water Quality
Certification issued on May 12, 2020. The after -the -fact -modification
request included stream and wetland impacts associated with unauthorized
fill from golf course fairway construction.
C. On July 23, 2020, DWR staff conducted site inspections of the Hampton
Redevelopment Project and confirmed approximately 105 linear feet of
unauthorized fill within three stream features, and approximately .024
acres of unauthorized fill within three wetland areas.
D. Title 15A NCAC 02B .0211 (1) states "The best usage of waters shall be
aquatic life propagation, survival, and maintenance of biological integrity
(including fishing and fish); wildlife; secondary contact recreation as

DocuSign Envelope ID: FE6C59F2-286B-4D16-B47F-570EFE05E75C
High Hampton Redevelopment Project
Case No. WP-2022-0001
Jackson County
Page 2 of 6
defined in Rule .0202 of this Section; agriculture; and any other usage
except for primary contact recreation or as a source of water supply for
drinking, culinary, and food processing purposes. All freshwaters shall be
classified to protect these uses at a minimum."
E. Title 15A NCAC 02B .0211 (2) states "The conditions of waters shall be
such that waters are suitable for all best uses specified in this Rule. Sources
of water pollution that preclude any of these uses on either a short-term or
long-term basis shall be deemed to violate a water quality standard;"
F. Title 15A NCAC 02B .0231 (b) states "The water quality standards for all
wetlands are designed to protect, preserve, restore, and enhance the quality
and uses of wetlands and other waters of the State influenced by wetlands.
The following are wetland uses:
(1) Storm and flood water storage and retention;
(2) Moderation of water level fluctuations;
(3) Hydrologic functions, including groundwater discharge that
contributes to maintain dry weather streamflow and, at other
locations or times, groundwater recharge that replenishes the
groundwater system;
(4) Filtration or storage of sediments, nutrients, toxic substances,
or other pollutants that would otherwise have an adverse impact,
as defined in 15A NCAC 02H .1002, on the quality of other
waters of the State;
(5) Shoreline protection against erosion through the dissipation of
wave energy and water velocity and stabilization of sediments;
(6) Habitat for the propagation of resident wetland -dependent
aquatic organisms, including fish, crustaceans, mollusks, insects,
annelids, planktonic organisms, and the plants and animals upon
which these aquatic organisms feed and depend upon for their
needs in all life stages; and
(7) Habitat for the propagation of resident wetland -dependent
wildlife species, including mammals, birds, reptiles, and
amphibians for breeding, nesting, cover, travel corridors, and
food."
G. Title 15A NCAC 02B .0231 (c) further states that, "The following
standards shall be used to assure the maintenance or enhancement of the
existing uses of wetlands identified in Paragraph (b) of this Rule:
(1) Liquids, fill or other solids, or dissolved gases shall not be present in
amounts that may cause adverse impacts on existing wetland uses...

DocuSign Envelope ID: FE6C59F2-286B-4D16-B47F-570EFE05E75C
High Hampton Redevelopment Project
Case No. WP-2022-0001
Jackson County
Page 3 of 6
(6) Hydrological conditions necessary to support the biological and
physical characteristics naturally present in wetlands shall be protected
to prevent detrimental impacts on:
(A) Water currents, erosion or sedimentation patterns;
(B) Natural water temperature variations;
(C) The chemical, nutrient, and dissolved oxygen regime of the
wetland;
(D) The movement of aquatic fauna;
(E) The pH of the wetland; and
(F) Water levels or elevations"
H. DWR file review indicated that additional fill impacts to streams and
wetlands occurred without the prior issuance or coverage of a 401 Water
Quality Certification.
Title 15A NCAC 02H .0501 requires certifications pursuant to Section
401 of the Clean Water Act whenever construction or operation of
facilities will result in a discharge into Waters of the United States as
described in 33 CFR Part 323.
J. Title 15A NCAC 02H .0502 states any person desiring issuance of the
State certification or coverage under a general certification required by
Section 401 of the Federal Water Pollution Control Act shall file with the
Director of the North Carolina Division of Water Resources.
K. On August 25, 2020, DWR issued a Notice of Violation and
Recommendation for Enforcement to Daniel Communities LLC based on
the DWR July 23, 2020 site inspection and file review.
L. On July 15, 2021, Daniel Communities LLC was issued an Individua1 401
Water Quality Certification WQC004212, DWR #2018-0765 Version 5.
This approval included impacts associated with the golf fairway
construction at the High Hampton Country Club and Golf Course.
M. The impacted streams are unnamed tributaries to (North) Fowler Creek,
classified as Class C, Trout + waters, unnamed tributaries to (North)
Fowler Creek (Hampton Lake), classified as Class B, Trout + waters, and
the impacted wetlands are classified as WL waters, both within the
Savannah River Basin.

DocuSign Envelope ID: FE6C59F2-286B-4D16-B47F-570EFE05E75C
High Hampton Redevelopment Project
Case No. WP-2022-0001
Jackson County
Page 4 of 6
N. The cost to the State of the enforcement procedures in this matter totaled
$343.38.
Based upon the above Finding of Fact, I make the following:
II. CONCLUSION OF LAW
A. Daniel Communities LLC is a "person" within the meaning of G.S. 143-
215.6A pursuant to G.S. 143-212 (4).
B. The unnamed tributaries to (North) Fowler Creek, and the wetlands on the
site constitute waters of the State within the meaning of G.S. 143-212 (6).
C. Daniel Communities LLC, violated Title 15A NCAC 02H .0501 and .0502
by unauthorized fill impacts to streams and wetlands without the prior
issuance or coverage of a 401 Water Quality Certification.
D. Daniel Communities LLC, violated Title 15A NCAC 02B .0211 (2) by
impacting approximately 105 linear feet of 3 streams from unauthorized
fill associated with golf course fairway construction.
E. Daniel Communities LLC, High Hampton Land LLC, and High Hampton
Resort LLC violated Title 15A NCAC 02B .0231(c)(1) and (6) by
impacting approximately 0.024 acres of 3 wetland areas from
unauthorized fill associated with golf course fairway construction.
F. Daniel Communities LLC, may be assessed civil penalties in this matter
pursuant to G.S. 143-215.6A (a)(2), which provides that a civil penalty of
not more than twenty-five thousand dollars ($25,000) per violation per
day may be assessed against a person who is required but fails to apply for
or to secure a permit required by G.S. 143-215.1, or who violates or fails
to act in accordance with the terms, conditions, or requirements of such
permit or any other permit or certification issued pursuant to authority
conferred by this Part.
G. Daniel Communities LLC, may be assessed civil penalties in this matter
pursuant to G.S. 143-215.6A (a)(1), which provides that a civil penalty of
not more than twenty-five thousand dollars ($25,000) per violation per
day may be assessed against a person who violates any classification,
standard, limitation, or management practice established pursuant to G.S.
143-214.1, 143-214.2, or 143-215.

DocuSign Envelope ID: FE6C59F2-286B-4D16-B47F-570EFE05E75C
High Hampton Redevelopment Project
Case No. WP-2022-0001
Jackson County
Page 5 of 6
H. Daniel Communities LLC, may be assessed civil penalties pursuant to
G.S. 143-215.6A (a)(6) which provides that a civil penalty of not more
than twenty-five thousand dollars ($25,000.00) per violation per day may
be assessed against a person who violates a rule of the Commission
implementing this Part, Part 2A of this Article, or G.S. 143-355(k).
I. The State's enforcement cost in this matter may be assessed Daniel
Communities LLC, pursuant to G.S. 143-215.3 (a)(9) and G.S. 143B-
282.1 (b)(8).
J. Jeffrey O. Poupart of the Division of Water Resources, pursuant to
delegation provided by the Secretary of the Department of Environmental
Quality and the Director of the Division of Water Resources, has the
authority to assess civil penalties in this matter.
Based upon the above Findings of Fact and Conclusions of Law, I make the following:
III. DECISION
Accordingly, Daniel Communities LLC is hereby assessed a civil penalty of:
$ 4,000 for violation of Title 15A NCAC 02H .0501 and .0502 by
unauthorized fill impacts to streams and wetlands without the prior
issuance or coverage of a 401 Water Quality Certification.
$ 7,000
for violations of Title 15A NCAC 02B .0211 (2) by impacting
approximately 105 linear feet of three streams from unauthorized fill
associated with golf course fairway construction.
$ 4,000 for violations of Title 15A NCAC 02B .0231(c)(1) and (6) by
impacting approximately 0.024 acres of three wetlands from
unauthorized fill associated with golf course fairway construction.
$ 15,000 TOTAL CIVIL PENALTY, authorized by G.S. 143-215.6A

DocuSign Envelope ID: FE6C59F2-286B-4D16-B47F-570EFE05E75C
High Hampton Redevelopment Project
Case No. WP-2022-0001
Jackson County
Page 6 of 6
$ 343.38 Enforcement Cost
$ 15,343.38 TOTAL AMOUNT DUE
As required by G.S. 143-215.6A(c), in determining the amount of penalty, I considered
the factors set out in G.S. 143B-282.1(b), which are:
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
The degree and extent of harm to the natural resources of the State, to the public
health, or to private property resulting from the violations;
The duration and gravity of the violations;
The effect on ground or surface water quantity or quality or on air quality;
The cost of rectifying the damage;
The amount of money saved by noncompliance;
Whether the violations were committed willfully or intentionally;
The prior record of the violator in complying or failing to comply with programs
over which the Environmental Management Commission has regulatory
authority; and
The cost to the State of the enforcement procedures
February 25, 2022
DocuSigned by:
L
8FB19B649DD2478...
Date Jeffrey O. Poupart
Division of Water Resources