WQ0002284_PC-2022-0015_20220405

DIVISION OF WATER RESOURCES - CIVIL PENALTY ASSESSMENT
Violator: Outer Banks/Kinnakeet Associates LLC
Facility Name: Kinnakeet Shores WWTP
Permit Number: WQ0002284
County: Dare
Case Number: PC-2022-0015
ASSESSMENT FACTORS
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; The facility treatment units are not functional. Therefore, untreated waste is
going to the disposal areas which are impacting waters of the State. The facility is not spraying on the reclaimed
fields and is disposing of the wastewater through infiltration. Groundwater is probably impacted. The public is
using a pond which is adjacent to the reclaim irrigation pond. The health risk is possible.
2) The duration and gravity of the violation; The facility has been inspected over the last 5 years and has been non-
compliant. The treatment facilities are not functional. No improvements have been noted. Noncompliance continues.
On the day of inspection there was no disinfection to the wastewater prior to disposal.
3) The effect on ground or surface water quantity or quality or air quality; With the treatment units not operational,
the groundwater and surface water may be impacted with high nutrients and bacteria. Permittee has failed to install
monitoring wells such that groundwater impacts cannot be verified.
4) The cost of rectifying the damage; The cost is significant. The clarifiers, tertiary filter, generator, spray irrigation
system, pumps need to be repaired. The repairs of some units may not be possible.
5) The amount of money saved by noncompliance; significant
6) Whether the violation was committed willfully or intentionally; The violations could be considered willful since the
owner fails to put any money into the system and fails to receive the Notices when sent to him by certified mail. The
Notices are now being sent to the permittee's lawyer and agent.
7) The prior record of the 'violator in complying or failing to comply with programs over which the
Environmental Management Commission has regulatory authority; The facility has been in non-compliance since
2017 and has failed to come into compliance. An assessment was issued to the Permittee on July 23, 2021 under Case
No. PC-2021-0034 for 8,656.38 dollars and on November 17, 2021 under Case No. PC-2021-0057 for $14,994.67
and on January 12, 2022 under Case No. PC-2022-0001 for $15,994.67. The treatment facilities have been put on
a moratorium where no taps, sewer extensions or flow can be added to the system.
8) The cost to the State of the enforcement procedures.
S494.67
April 5, 2022
Date
David May, Regional supervisor
Water Quality Regional Operations Section
Washington Regional Office
Division of Water Resources, NCDEQ

ROY COOPER
Governor
ELIZABETH,S. BISER
:seamy
RICHARD E ROGERS, JR.
Director
Certified Mail # 70210350000044184951
Return Receipt Requested
Ray E Hollowell, Jr
Outer Banks/Kinnakeet Associates LLC
8351 Fem Ln
Connelly Spg, NC 28612
NORTH CAROLINA
Environmental Quality
April 05, 2022
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 WWTP
Case No. PC-2022-0015
Dare County
Dear Mr. Hollowell:
This letter transmits a Notice of Violation and assessment of dvil penalty in the amount of $13,494.67
($13,000.00 civil penalty + $494.67 enforcement costs) against Outer Banks/Kinnakeet Associates LLC.
This assessment is based upon the following facts: an inspection of the Innakeet Shores WWTP was
conducted on January 11, 2022. 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).
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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:
$13.000.00 For of the $ violations of the conditions and limitations specified in Permit No.
WQ0002284 .
$13,000.00 TOTAL CIVIL PENALTY
$494.67 Enforcement Costs
$13,494.67 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 Condusions 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 foredose 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 dvil 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 dvil 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 dvil 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
dedsion 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 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 dvil 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 Robert Tankard with the Division of Water Resources staff of the
Washington Regional Office at [phone] or via email at [e-mail].
Sincerely,
V
David May, Regional Supervisor
Water Quality Regional Operations Section
Washington Regional Office
Division of Water Resources, NCDEQ
ATTACHMENTS
Cc: laserfiche
Mr. Bruce Miller, Accountant; 40222 Methodist Church Road, Avon, NC, 27915
Via certified mail and email (certified mail # 70210350000044184968)
Mr. C. Sean Yacobi, Esq., Law Office of C. Sean Yacobi, PLLC; PO Box 1851, Nags Head NC 27959
Via certified mail and email (certified mail #70210350000044184975)
Mr. Ray E. Hollowell; PO Box 1158, Avon NC 27915
Via certified mail and email (certified mail #770210350000044184982)

,USTIFICATION FOR REMISSION REOUEST
Case Number: PC-2022-0015
Assessed Party: Outer Banks/Kinnakeet Associates LLC
Permit No.: WQ0002284
County: Dare
Amount Assessed: $13,494.67
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 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 dvil 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, induding 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 con-ect 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 MATTER OF ASSESSMENT
OF CIVIL PENALTIES AGAINST
Outer Banks/Klnnakeet Associates LLC
Kinnakeet Shores WWTP
PERMIT NO. WQ0002284
WAIVER OF RIGHT TO AN
ADMINISTRATIVE HEARING AND
STIPULATION OF FACTS
CASE NO. PC-2022-0015
Having been assessed civil penalties totaling $13,494.67 for violation(s) as set forth in the assessment
document of the Division of Water Resources dated April 05, 2022, the undersigned, desiring to seek remission
of the dvil 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/Kinnakeet Associates LLC
CASE NUMBER: PC-2022-0015
PERMIT NO: WQ0002284
FACILITY: Kinnakeet Shores WWTP
REGION: Washington
COUNTY: Dare
VIOLATION
DATE
AREA
VIOLATION
TYPE
VIOLATION DESCRIPTION
PENALTY
AMOUNT
1/11/2022 Treatment Clarifiers Violation detected during
inspection
CLARIFIER DOES NOT FUNCTION.
SOLIDS ARE THICK WITHIN THE
CLARIFIER. THERE WERE TWO
BYPASSES SET UP WITHIN THE
CLARIFIER WHICH WENT DIRECTLY
TO THE DISCHARGE PIPE TO THE
STORAGE/INFILTRATION POIND.
$3,000.00
1/11/2022 Treatment Violation detected during
inspection
CLARIFIERS, RETURN PUMPS,
TRAVELLING BRIDGE FILTER,
DISINFECTION, GENERATOR AND
SPRAY IRRIGATION SYSTEM IS NOT
FUNCTIONAL.
$0.00
1/11/2022 Treatment Disinfection Violation detected during DISINFECTION SYSTEM DID NOT HAVE $3,000.00
inspection ANY CHLORINE ON SITE.
1/11/2022 Standby Power Violation detected during
inspection
GENERATOR DOES NOT FUNCTION. $3,000.00
1/11/2022 Treatment Flow Violation detected during OPERATOR STATED FLOW METER IS
Measurement -Effluent inspection NOT WORKING AND USING AVERAGE
FLOWS FROM 2021.
$500.00
1/11/2022 Treatment Retum pumps Violation detected during
inspection
OPERATOR STATED THEY DO NOT
FUNCTION. THEREFORE, SOLIDS
ARE BUILDING UP IN THE CLARIFIER.
$0.00
1/11/2022 Treatment Filters Violation detected during
TRAVELLING BRIDGE FILTER IS NOT $3,000.00
inspection FUNCTIONAL.
1/11/2022 Miscellaneous Questions Violation detected during TURBIFITY METER NEEDS TO BE
Inspection REAPIRED AND CALIBRATED BY A
THIRD PARTY.
$500.00