090100_Settle Agreement_20220418

STATE OF NORTH CAROLINA IN THE OFFICE OF
ADMINISTRATIVE HEARINGS
COUNTY OF BLADEN 21 EHR 05413
OAK SPRINGS FARM LLC MICHAEL
TEACHEY,
Petitioner,
SETTLEMENT AGREEMENT
v.
DEPARTMENT OF ENVIRONMENTAL
QUALITY,
Respondent.
Petitioner Oak Springs Farm LLC Michael Teachey ("Petitioner") and Respondent
Department of Environmental Quality("DEQ") ("Respondent")hereby enter into this Settlement
Agreement ("Agreement") in order to resolve a matter in controversy between them. This matter
arose out of the issuance of a Civil Penalty assessment in the amount of$7,250.00 plus $667.07
for investigative costs("CPA")(attached hereto as Exhibit A).The CPA was for alleged violations
of the Swine Waste Management System General Permit No. AWG100000 as described in the
Findings and Decision and Assessment of Civil Penalty document included in the CPA.
Without any hearing of fact or law in the above-styled matter, IT IS THEREFORE
AGREED BY THE PARTIES THAT:
1. In order to avoid the cost and delay of further litigation, the parties have entered into this
Agreement, have agreed that all parties have been correctly designated, and that there is no
question as to misjoinder or nonjoinder.
2. The Petitioner shall pay DEQ $4,332.93 plus the$667.07 in enforcement costs, for a total
amount of$5,000.00 ("Settlement Amount"), in full settlement of all violations described in the

CPA.The Settlement Amount shall be made in a lump sum payment due within thirty(30)calendar
days of the execution of this Agreement. The payment shall be made by check and made payable
to the "North Carolina Department of Environmental Quality" and delivered to the following
address:
If sending via US Postal Service If sending via delivery service(UPS, FedEx, etc.)
Carolyn Hudnell Carolyn Hudnell
Environmental Division Environmental Division
NCDOJ NCDOJ
9001 MSC 114 W. Edenton Street
Raleigh,NC 27699-9001 Raleigh,NC 27603
3. Where payment is refused by the bank for any reason, it is a breach of the terms and
conditions contained in Paragraph 2 of this Agreement, and DEQ shall be entitled to charge and
collect the costs for processing each returned check,in the amount of twenty-five dollars($25.00).
4. The Petitioner further agrees to make its Land and Nutrient Team Manager, Michael
Ammons,available for a meeting with DEQ staff from the Fayetteville Regional Office to discuss
nutrient management issues at Oak Springs Farm at a mutually agreed upon time within sixty(60)
calendar days of the execution of this Agreement. •
5. Within seven (7) days of execution of this Agreement by the parties, the Petitioner shall
file a notice of voluntary dismissal with prejudice of the Petitioner's Petition for Contested Case
Hearing in the above-captioned matter, 21 EHR 05413.
6. If the Petitioner fails to pay DEQ the full settlement amount in the amount and time
specified in Paragraph 2 of this Agreement, does not in good faith make its Land and Nutrient
Team Manager available for a meeting as specified in paragraph 4, or does not dismiss the case in
as specified in paragraph 5,the Petitioner shall be liable for the entire$7,917.07 as specified in the
CPA, as well as interest and costs.
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7. The sole issue in any action by DEQ to collect any payments not paid in accordance with
the terms of this Agreement shall be Petitioner's failure to make said payments pursuant to the
terms of this Agreement. Petitioner expressly agrees that by entering into this Agreement,
Petitioner waives, for purposes of collection of any sums due hereunder, any and all defenses to
the underlying assessment of the civil penalty and investigative costs.
8. Nothing in this Agreement shall restrict the right of DEQ, including the Division of Water
Resources,to inspect or take enforcement action against Oak Springs Farm for any other violations
of environmental statutes,the relevant rules promulgated thereunder,or any environmental permits
or certificates held by Respondent. Similarly, nothing in this Agreement shall restrict the right of
the Petitioner to contest any other enforcement action.
9. It is understood and agreed that payments made or actions taken pursuant to the terms of
this Agreement are not to be construed as an admission of liability by Petitioner, nor as an
admission by the Respondent that the penalty was improperly issued, and that this Agreement is a
compromise of disputed claims.
10. The Petitioner and Respondent agree that, for purposes of any future bankruptcy
proceeding, this Agreement is not intended as, nor shall it be deemed to constitute, a novation of
any claims asserted by the Respondent against the Petitioner.Petitioner further agrees that pursuant
to 11 U.S.C. § 523 all sums payable to the Respondent pursuant to this Agreement are non-
dischargeable in bankruptcy. Nothing in this Agreement releases any non-dischargeability claims
that may be asserted by Respondent in any bankruptcy proceeding, and nothing in this Agreement
shall be deemed a waiver of Respondent's right to rely on the nature of any claim or debt released
in this Agreement to show that the claim or debt is non-dischargeable.
11. The parties agree that the consideration for this settlement is the promises contained herein
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and that this Agreement contains the whole agreement between them.
12. This Agreement is entered into knowingly, intelligently, and voluntarily and shall be
binding upon the parties, their successors and assigns, upon execution by the undersigned, who
represent and warrant that they are authorized to enter into this Agreement on behalf of the parties
hereto.
13. Facsimile or scanned signatures will be sufficient to render this Agreement effective.
PETITIONER,OAK SPRINGS FARM LLC MICHAEL TEACHEY
Michael Teachey
Director of Operations
Kaizen Farms
Executed this the M day of April, 2022
ADDITIONAL SIGNATURE ON FOLLOWING PAGE
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RESPONDENT, DEPARTMENT
OF ENVIRONMENTAL QUALITY
Jeff Poupart
Chief, Water Quality Permitting Section
N.C. Division of Water Resources
Executed this the 5 day of April, 2022
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