WQ0018708_LV-2011-0056_20110323

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1. Article Addressed to:
LAKE CREEK CORPORATION
ATTN: D. STEPHEN JONES
33 WEST BAY RIDGE RD.
HARRELLS, NC 28444
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NC DEPT OF ENVIRONMENT & NATURAL RESOURCES
DWQ-AP SECTION
ATTN: ART BARNHARDT
225 GREEN ST, SUITE 714
FAYETTEVILLE NC 28301-5043
RECEIVED
MAR 2 9 2011
DENR -FAYETTEVILLE REGIONAL OF
ICE

47A,
NCDENR
North Carolina Department of Environment and Natural Resources
Beverly Eaves Perdue
Governor
CERTIFIED MAIL
RETURN RECEIPT REQUESTED
D. Stephen Jones
Lake Creek Corporation
33 West Bay, Ridge Road
Harrells, NC 28444
Division of Water Quality
Coleen H. Sullins
Director
March 23, 2011
SUBJECT: Assessment of Civil Penalties for Violation(s) of
NCGS 143-143-215.1 & Permit No.WQ0018708
Bladen County
Enforcement File #: LV-2011-0056 '
Dee Freeman
Secretary
Dear Mr. Jones:
I
This letter transmits notice of a civil penalty assessed against Lake` Creek Corporation in the amount of $1,400,
and $641.56 in investigative costs, for a total of $2,041.56. Attached is a copy of the assessment document
explaining this penalty. " '
This action was taken under the authority vested in me by delegation provided ;by the Secretary of the Department
of Environment and Natural Resources. Any continuing violation(s) may be the subject of a new enforcement
action, including an additional penalty.
Within thirty days of receipt of this notice, you must do one of the following:
1. Submit payment of the penalty:
Payment should be made directly to the order of the Department of Environment and Natural Resources (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:
Ed Hardee
Aquifer Protection Section
Division of Water Quality
1636 Mail Service Center
Raleigh, North Carolina 27699-1636
OR
1617 Mail Service Center, Raleigh, North Carolina27699-1617
Location: 512 N. Salisbury St. Raleigh, North Carolina 27604
Phone: [phone] \ FAX: [phone] \ Customer Service: 1-877-623-6748
Internet: www.ncwaterquality.org
An Equal Opportunity 1 Affirmative Action Employer.
NorthCarolina
Naturally

Assessment of Civil Penalty
Lake Creek Corporation
Enforcement File #LV-2011-0056
3/23/2011
Page 2 of 3
Submit a written request for remission 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 Quality 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) were wrongfully
applied to the detriment of the violator;
(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 has 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 the Division of Water Quality will review your evidence and inform you of
their 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 Quality also requests that you complete and submit the
enclosed "Justification for Remission Request." Both forms should be submitted to the following address:
Ed Hardee
Aquifer Protection Section
Division of Water Quality
1636 Mail Service Center
Raleigh, North Carolina 27699-1636
OR
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

Assessment of Civil Penalty
Lake Creek Corporation
Enforcement File #LV-2011-0056
3/23/2011
Page 3 of 3
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:
Office of Administrative Hearings
6714 Mail Service Center
Raleigh, NC 27699-6714
Tel: [phone]
Fax: [phone]
One (1) copy of the petition must also be served on DENR as follows:
Mary Penny Thompson, General Counsel
DENR
1601 Mail Service Center
Raleigh, NC 27699-1601
Failure to exercise one of the options above within thirty (30) days of receipt of this notice, 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 Stephen Barnhardt at [phone].
Sincerely,
11111.11
Cot -en H. Sullins
Enclosures
cc:

AVA
NCDENR
North Carolina Department of Environment and Natural Resources
Division of Water Quality
Beverly Eaves Perdue Coleen H. Sullins j Dee Freeman,
Governor - Director Secretary
March 23, 2011
CERTIFIED MAIL
RETURN RECEIPT REQUESTED
D. Stephen Jones
Lake Creek Corporation
33 West Bay, Ridge Road
Harrells, NC 28444
SUBJECT: Assessment of Civil Penalties for Violation(s) of
NCGS 143-143-215.1 & Permit No.WQ0018708
Bladen County
Enforcement File #: LV-2011-0056
Dear Mr. Jones:
This letter transmits notice of a civil penalty assessed against Lake Creek Corporation in the amount of $1,400,
and $641.56 in investigative costs, for a total of $2,041.56. Attached is a copy of the assessment document
explaining this penalty.
This action was taken under the authority vested in me by delegation provided by the Secretary of the Department
of Environment and Natural Resources. Any continuing violation(s) may be the subject of a new enforcement
action, including an additional penalty.
Within thirty days of receipt of this notice, you must do one of the following:
1. Submit payment of the penalty:
Payment should be made directly to the order of the Department of Environment and Natural Resources (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:
Ed Hardee
Aquifer Protection Section
Division of Water Quality
1636 Mail Service Center
Raleigh, North Carolina 27699-1636
OR
1617 Mail Service Center, Raleigh, North Carolina 27699-1617
Location: 512 N. Salisbury St. Raleigh, North Carolina 27604
Phone: [phone] FAX: [phone] Customer Service: 1-877-623-6748
Internet: www.ncwaterquality.org
An Equal Opportunity 1 Affirmative Action Employer
One
NorthCarolina
Naturally.

Assessment of Civil Penalty
Lake Creek Corporation
Enforcement File #LV-2011-0056
3/23/2011
Page 2 of 3
2. Submit a written request for remission 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 Quality 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) were wrongfully
applied to the detriment of the violator;
(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 has 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 requestfor remission must be submitted in writing.
The Director of the Division of the Division of Water Quality will review your evidence and inform you of
their decision in the matter of your remission request. The response 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 Quality also requests that you complete and submit the
enclosed "Justification for Remission Request." Both forms should be subinitted to the following address:
Ed Hardee
Aquifer Protection Section
Division of Water Quality
1636 Mail Service Center
Raleigh, North Carolina 27699-1636
OR
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

Assessment of Civil Penalty
Lake Creek Corporation
Enforcement File #LV-2011-0056
3/23/2011'
Page 3 of 3
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:
Office of Administrative Hearings
6714 Mail Service Center
Raleigh, NC 27699-6714
Tel: [phone]
Fax: [phone]
One (1) copy of the petition must also be served on DENR as follows:
Mary Penny Thompson, General Counsel
DENR
1601 Mail Service Center
Raleigh, NC 27699-1601
Failureto exercise one of the options above within thirty (30) days of receipt of:this notice, 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 Stephen Barnhardt at [phone].
Sincerely,
14111111i
Col en H. Sullins
Enclosures
cc:

STATE OF NORTH CAROLINA
COUNTY Of BLADEN
IN THE MATTER OF:
LAKE CREEK CORPORATION
FOR VIOLATIONS OF:
Permit No.WQ0018708
and N.C.G.S. 143-215.1
NORTH CAROLINA
DEPARTMENT OF ENVIRONMENT AND
NATURAL RESOURCES
FILE NO. LV-2011
=00."56
FINDINGS AND DECISION AND
ASSESSMENT OF CIVIL PENALTIES
Acting pursuant to North Carolina General Statutes (N.C.G.S.) 143-215.6(A) and the
delegation provided by the Secretary of the Department of Environment and Natural Resources,
I, Coleen H. Sullins, Director of the Division of Water Quality (DWQ), make the following:
I. FINDINGS OF FACT:
A. Lake Creek Corporation (hereinafter referred to as Lake Creek, is a corporation,
organized and existing under the laws of the State of North Carolina. Lake Creek
operates a 20,000 gallon per day wastewater Surface Irrigation system at 12415 NC
Highway 41 East, Harrells, North Carolina, Bladen County. j
B. The Lake Creek Corporation's wastewater facility consists of an influent flow monitor,
a barscreen, storage lagoon with (30) days storage, hypo -chlorite injection and spray
irrigation system.
C. Lake Creek as issued Permit No. WQ0018708 on February 3, 2009 with an expiration
date of June 30, 2013 for operation of the wastewater disposal system.
D. On January 14, 2011, the Division issued a Notice of Violation;(NOV) with intent to
enforce to Lake Creek identifying violations of Permit No.WQ0018708. The violations
were exceeding their flow daily limit 137 times in 2008, 53'pnes in 2009, and 108
times in 2010. Additionally, this resulted in excessive monthly average flows 5 times in
2008, 2 times in 2009 and 7 times in 2010.
I '
E. The NOV was sent by Certified Mail, Return Receipt Requested and received on
January 18, 2011.
F. Staff costs and expenses associated with detecting the violations, defining their nature
and extent and bringing enforcement action totaled $641.56.
Based upon the above Findings of Fact, I make the following:
II. CONCLUSIONS OF LAW:

A. Lake Creek is a "person" within the meaning of N.C.G.S. 143-215.6(A) pursuant to N.C.G.S.
143-212(4).
B. Permit No. WQ0018708 is required by N.C.G.S. 143-215.1. This
Creek on February 3, 2013 and expires June 30, 2017.
permit was issued to Lake
C. Lake Creek violated N.C.G.S. 143-215.1 and Permit No. WQ0018708 to the manner and
extent as described in Permit WQ0018708, by exceeding their permitted daily influent flow
limits 137 times during 2008, 53 times during 2009 and 108 time during 2010. In addition
to daily limits being exceeded, excessive monthly average flows were documented 5 times in
2008, 2 times in 2009 and 7 times in 2010.
D. General Statute 143-215.6A (a) (2) provides that a civil penalty of not more than $25,000.00
per violation may be assessed against a person who violates or fails to act in accordance with
the terms, conditions, or requirements of a permit required by N.C.G.S. 143-215.1.
E. General Statute 143-215.3(a) (9) provides that the reasonable costs of any investigation,
inspection or monitoring survey may be assessed against a person who violates any
regulations, standards, or limitations adopted by the -Environmenal Management
Commission or violates any terms or conditions of any permit issued pursuant to N.C.G.S.
143-215.1, or special order or other document issued pursuant to N.C.G.S. 143-215.2.
Based upon the above Findings of Fact and Conclusions of La I , I1 make the following:
III. DECISIONS
Pursuant to N.C.G.S. 143-215.6A in determining the amount of the penalty, I have taken
into account the Findings of Fact and Conclusions of Law and considered all the factors listed in
N.C.G.S. 143B-282.1.
Accordingly,
$ 1,400.00
7
Lake Creek Corporation shall be, and hereby is, assessed a civil penalty of:
$ 1,400.00
•
$ 641.56
$ 2,041.56
for 14 violations of N.C.G.S. 143-215.1 and Permit No.
WQ0018708 by exceeding their influent flow limit during a time
period between January 2008 through November 2010.
TOTAL CIVIL PENALTY which is 0.04 percent of the
maximum penalty authorized by N.C.G.S. 143-215.6A.
Investigation costs assessed
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 recordof 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.
IV. NOTICE:
I reserve the right to assess civil penalties and investigative costs for any continuing violations
occurring after the assessment period indicated above. Each day of a continuing violation may
be considered a separate violation subject to a maximum $25,000.00 per day penalty. Civil
penalties and investigative cost may be assessed for any other rules and statutes for which
penalties have not yet been assessed.
V. TRANSMITTAL:
These Findings of Fact, Conclusions of Law and Decision shall be transmitted to Lake
Creek in accordance with N.C.G.S. 143-215.6(A)(d).
a3 m40.4.4 .10
(Date) Coleen H. Sullins

JUSTIFICATION FOR REMISSION REQUEST
APS Case Number: LV-2011-0056 County: Bladen
Assessed Party: Lake Creek Corporation
Permit No. W00018708 Amount assessed: $2,041.56
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 determining
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. By law [NCGS 133-215.6A(f)] remission of
a civil penalty may- be granted when one or more of the following five factors applies. 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 NCGS 143B-282.1(b) were
wrongfully applied to the detriment of the petitioner (the assessment factors are
included in the attached penalty matrix and/or 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:
\Rem. req.

STATE OF NORTH CAROLINA
COUNTY OF BLADEN
IN THE MATTER OF ASSESSMENT
OF CIVIL PENALTIES AGAINST
LAKE CREEK CORPORATION
33 WEST BAY, RIDGE ROAD -
HARRELS, NORTH CAROLINA, 28444
DEPARTMENT OF ENVIRONMENT
AND NATURAL RESOURCES
WAIVER OF RIGHT TO AN
ADMINISTRATIVE HEARING AND
STIPULATION OF FACTS
PERMIT NO. WQ0018708 FILE NO. LV-20117 0056
Having been assessed civil penalties totaling $ 2,041.56 for violations) as set forth in
the assessment document of the Division of. Water Quality dated; March 23, 2011 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 submittedto the Director of the Division of
Water Quality within thirty (30) days of receipt'of the notice of assessment. No new evidence in
support of a remission request will be allowed after:thirty (30) days from'the receipt of the notice
of assessment.
This the day of
, 2011.
Signature
ADDRESS
TELEPHONE
N. C. Division of Water Quality
1617 Mail Service Center Raleigh, North Carolina 27699-1617 [phone]
NC ENR
Customer Service
1-877-623-6748

Violator:
County:
Case Number:
Permit Number:
DIVISION OF WATER QUALITY
CIVIL PENALTY ASSESSMENT FACTORS
Lake Creek Corporation
Bladen
LV-2011-0056
WQ0018708
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 degree and extent of harm has not been measured and is unknown at this time. '
2) The duration and gravity of the violation:
Numerous influent violations occurred from 2008 and to present.
3) The effect on ground or surface water quantity or quality or on air quality:
None.
4) The cost of rectifying the damage:
None.
5) The amount of money saved by noncompliance:
The cost of installing permitted system upgrade plans to the wastewater, system is estimated near
$50,000.00, but DWQ does not have any documentation or knowledge of a specific contract cost
estimate.
6) Whether the violation was committed willfully or intentionally:
Failing to expand the wastewater system capacity or address system I/I problems is considered both
willful and intentional.
7) The prior record of the violator in complying or failing to comply with programs over which the
Environmental Management Commission has regulatory authority
None.
8) Type of violation and nature of business:
Lake Creek Corporation is in the residential development business. The violations are related to the
wastewater system operated to serve their residential development.
9) Violator's degree of cooperation (including efforts to prevent) or recalcitrance:
Lake Creek Corporation has not exhibited a cooperative resolve.
rev 1.0 - 8.31.09

10) Mitigating Circumstances:
None.
11) The cost to the State of the enforcement procedures:
The cost to the State in bringing about this enforcement action is
Administrative Costs:
Investigative Costs:
Supervisor (Barnhardt) 2 hour@ $36.72/hr
as follows:
$ 100.00
$ 73.44
Permit Engineer 4 hour @ $42.47/hr $ 169.88
Staff (Shields) 12 hours @ 28.74/hr $ 297.36
Certified Mail 2 @ .44 /ea. $ 0.88
Total Investigative & Administrative Costs $ 641.56
Date Stephen Barnhardt, L.G.
rev 1.0 - 8.31.09,

DIVISION OF WATER QUALITY
CIVIL PENALTY REMISSION FACTORS
Case Number: FILE NO. LV-2011-0056 Region: Fayetteville
County: Bladen
Assessed Entity: Lake Creek Corporation Permit: WQ0018708
❑ (a) Whether one or more of the civil penalty assessment factors were, wrongly applied to the
detriment of the petitioner:
▪ (b) Whether the violator promptly abated continuing environmental damage resulting from
the violation:
❑ (c) Whether the violation was inadvertent or a result of an accident:
❑. (d) Whether the violator had been assessed civil penalties for any previous violations:
❑ (e) Whether payment of the civil penalty will prevent payment for the remaining necessary
remedial actions:
DECISION (Check One)
Request Denied ❑
Full Remission ❑ Retain Enforcement. Costs? Yes ❑ No ❑
Partial Remission❑ $ (Enter Amount)
Coleen H. Sullins Date
r
rev 1.0 = 8..31.09

GARY A. GRADY
H. CLIFTON HESTER
WHITLEY J. H. WARD
TELEPHONE [phone]
FAX [phone]
www.hghgp.com
VIA U.S. MAIL
HESTER, GRADY & HESTER, P. L. L. C.
ATTORNEYS AT LAW
115 COURTHOUSE DRIVE
P. O. DRAWER 130
Ms. Jane Oliver
Assistant Attorney General
N.C. Department of Justice
Environmental Division
9001 Mail Service Center
Raleigh, NC 27699-9001
ELIZABETHTOWN, NC 28'337
August 5, 2011
RECOVEO
AUG 0 9 2011
OENR-FAYEfTEVILLEREGIONAL OW
ROBERT J. HESTER, JR.
(1904-1973 )
FRANK T. GRADY
(1919-2005 )
WORTH H. HESTER
(1023 - 2008 )
RECEIVED
AUG 8 2011
N.C. ATTORNEY GENERAL
Environmental Division
Re: Lake Creek Corporation vs. N.C. Dept. of Environment and Natural
Resources, Division of Water Quality
Dear Ms. Oliver:
Enclosed please find three original copies of the Settlement Agreement and Withdrawal
of Petition on the above referenced case.
Please return one of the signed agreements back to me.
With kind regards, I am
Sincerely yours,
Hester, Grady & Hester, P.L..C.
H. Clifton Hester
HCH/jb
Enclosure —Settlement Agreement and Withdrawal of Petition
• oa

STATE OF NORTH CAROLINA
COUNTY OF BLADEN
Lake Creek Corporation,
Petitioner,
v.
N.C. Dept. of Environment and Natural
Resources, Division of Water Quality,
Respondent.
IN THE OFFICE OF
ADMINISTRATIVE HEARINGS
11 EHR 05142
SETTLEMENT AGREEMENT AND
WITHDRAWAL OF PETITION
Lake Creek Corporation (hereinafter "Petitioner"), and theF
North Carolina Division of
Water Quality (hereinafter "DWQ") of the Department of Environment and Natural Resources
(hereinafter "DENR"), hereby enter into this Settlement Agreement (hereinafter "Agreement") in
order to resolve matters in the controversy between them, pursuant to N.C. Gen. Stat. §150B-
31(b). This matter arose out of DWQ's assessment of a civil penalty (DENR No. LV-201-1-
0056) in the amount of two thousand forty-one dollars and fifty six cents ($2,041.56), including
six hundred forty-one dollars and fifty-six cents in enforcem int ;costs ($641.56), against
Petitioner. The civil penalty was assessed on March 23, 2011 for fourteen (14) violations of
N.C.G.S. § 143-215.1 and Permit No. WQ0018708. The specific violations for which penalties
were assessed resulted from Petitioner's exceeding permitted flow
limits of 20,000 gallons per
day by excessive monthly average flows during five (5) months in 2008, two (2) months in 2009
and seven (7) months in 2010.
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 litigation, the parties have entered into this
Agreement and have agreed that ail parties have been correctly designated and that there is no
question as to misjoinder or nonjoinder.
2. Petitioner shall pay DWQ two thousand forty-one dollars and fifty-six cents
($2,041.56) (Settlement Amount), and DENR shall accept such payment, in complete
satisfaction of the civil penalty identified as DENR LV-2011-0056. Payment shall be made in
full no later than thirty (30) days after the execution of this Agreement. Payment shall be made
by check and made payable to the "N.C. Department of Environment. and Natural Resources,
Division of Water Quality" (or "NCDENR, DWQ"), and delivered to the following address:
Jane Oliver
Assistant Attorney General
N.C. Depaitinent of Justice
Environmental Division
9001 Mail Service Center
Raleigh, North Carolina 27699-9001
3. Petitionerexpressly agrees that, if the terms of Paragraph two (2) of this
Agreement are violated, it waives, for purposes of collecting any sums due hereunder, any and
all defenses to the underlying civil penalty assessment contested by Petitioner in this matter and
that the issue in any action to collect will be limited to issues of compliance with this agreement.
4. Nothing in this Agreement shall restrict the right of DWQ to inspect or take
enforcement action against the Petitioner for any new or subsequent violations of its permit or
State water quality statutes and the relevant rules promulgated thereunder. Similarly, nothing in
this Agreement shall restrict the right of the Petitioners to contest a new or , subsequent
enforcement action arising outside of the March 23, 2011 (DENR No. LV-2011-0056) civil
penalty assessment.
2

' 5. The parties agree that the consideration for this ! settlement is the promises
contained herein and that this Agreement contains the whole agreement between them.
i
6. This Agreement 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.
7. Petitioner and Respondent agree that, for purpose 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 all
sums payable to the Respondent pursuant to this Agreement are nondischargeable in bankruptcy
under 11 U.S.C. § 523. Nothing in this Agreement releases any nondischargeability claims that
may be asserted by the Respondent in;any bankruptcy proceeding, and nothing in this Agreement
shall be deemed a waiver of the 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 nondischargeable:
WITHDRAWAL OF PETITION
1. Entry of this Agreement serves as Petitioners' Voluntary Withdrawal with
Prejudice of their Petition for Contested Case Hearing in this matter. The parties agree that this
matter is concluded and that no further proceedings are needed or required to resolve the
contested case.
FOR LAKE CREEK DEVELOMENT:
D. Stephen Jones, Jr.
Vice President
Date:
FOR NCDENR, DWQ:
Sign
Stephe A Barnhardt, L.G.
Region Aquifler Protection Supervisor
Date: a.5 usr 2 0 9 U

FILED
OFFICE OF
ADMINISTRATIVE HEARINGS
Jul 12 10 31 AM 2011
STATE OF NORTH CAROLINA IN THE OFFICE OF
ADMINISTRATIVE HEARINGS
COUNTY OF BLADEN 11 EHR 05142
Lake Creek Corporation
Petitioner
vs.
N. C. Department of Environment and
Natural Resources
Respondent
NOTICE OF HEARING
NOTICE IS HEREBY GIVEN that the above -captioned case will be brought on for
hearing before the undersigned administrative law judge as follows:
DATE: August 8, 2011
TIME: 9:00 a.m.
PLACE: Old Cumberland County Courthouse
Courtroom 3
130 Gillespie Street
Fayetteville, NC
1. This hearing will be conducted. in accordance with G.S. Chapter 150B and the Rules of
Contested Case Hearings in the Office of Administrative Hearings, copies of which
may be obtained at cost from Molly Masich, Director of APA Services or by accessing
the OAH Web page at http://www.oah.state.nc.us/hearings/#Chapter3.
2. Unless otherwise determined by the administrative law judge, the hearing will proceed
in the following sequence:
a. Ca11 of the case
b. Motions and other preliminary matters
c. Stipulations, agreements, or consent orders entered into the record
d. Opening. statements_ .
e. Presentation of evidence; cross-examination .
f. Final arguments
3. All parties are hereby notified to bring to the hearing all documents, records, and
witnesses needed to present the party's case.
NOTE: IF SPECIAL EQUIPMENT IS REQUIRED FOR THE PRESENTATION

OF EVIDENCE, THE PARTIES ARE RESPONSIBLE FOR MAKING
ARRANGEMENTS FOR THE EQUIPMENT.
4. Subpoenas may be available to the parties pursuant to 26 N AC 3 .0113 to compel the
attendance of witnesses or for the production of documents.
5. A party may represent himself or be represented by an attorney. A party who is
represented by an attorney must file a Notice of Representation within 10 days of
service of this Notice containing the name, address, and telephone number of the
attorney, unless the attorney has already corresponded with this Office concerning
this case.
TAKE NOTICE THAT A FAILURE TO APPEAR AT THE HEARING MAY RESULT IN:
1. A finding that the allegations of or the issues set out in this Notice may be taken as
true or deemed proved without further evidence;
2. Dismissal of the case or allowance of the motion or petition;
3. Suppression of a claim or defense; or
4. Exclusion of evidence.
NOTICE OF CANCELLATION OF HEARING
THE PARTIES MUST NOTIFY THE OFFICE OF ADMINISTRATIVE HEARINGS
AT LEAST 24 HOURS PRIOR TO THE CANCELLATION OF THE CONTESTED CASE
HEARING. FAILURE TO GIVE TIMELY NOTICE OF CANCELLATION MAY RESULT
IN A CHARGE TO THE PARTIES FOR THE COST OF THE COURT REPORTER OR
HEARING ASSISTANT. SEE 26 NCAC 3 .0123(f).
This the 12th day of July, 2011.
•
Donald W. Overby
Administrative Law Judge

DENR .FRO
JAN 0 6 2012
DWQ
STATE OF NORTH CAROLliNPPAP IN THE OFFICE OF .
ADMINISTRATIVE HEARINGS
COUNTY OF --- -- -- , 11 EHR 05142
Lake Creek Corporation,
Petitioner,
v.
SETTLEMENT'AGREEMENT AND
WITHDRAWAL OF PETITION
N.C. Dept. of Er wironr-nent and Na aral
Resources, Division of Water Quality,
Respondent.
Lake Creek Corporation (hereinafter "Petitioner"), and the North Carolina Division of
Water Quality (hereinafter "DWQ") of the Department of Environment and •Natural Resources
(hereinafter "DENR"), hereby enter into this Settlement Agreement (hereinafter "Agreement") in
• order to resolve matters in the controversy between them, pursuant
to N.C. Gen. Stat. § 150B-
31(b). This matter arose out of DWQ's assessment of a civil, penalty (DENR No. LV-2011- •
0056) in the amount of two thousand forty-one dollars and fifty six cents ($2,041.56), including
six hundred forty-one dollars and fifty-six cents in enforcement costs ($641.56), against
Petitioner. The civil penalty was assessed on March 23, 2011 for'' fourteen (14) violations of
N.C.G.S. § 143-215.1 and Permit No. WQ0018708. The specific vi,i lations for which penalties
were assessed resulted from Petitioner's exceeding permitted flow limits of 20,000 gallons per
day by excessive monthly average flows during five (5) months in 2008, two (2) months in 2009
and seven (7) months in 2010.
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 litigation, the parties have entered into this
• Agreement and have agreed that all parties have been correctly designated and that there is no
question as to misjoinder or nonjoinder.
2. Petitioner shall pay. DWQ two thousand forty-one dollars and fifty-six cents
1
($2,041.56) (Settlement Amount), and DENR: shall accept such !payment, in complete
•
satisfaction ofthe civil penalty identified as DEN% LV-2011-0056.1 Payment shall be made in
full nolater than thirty (30) days after the execution of this Agreement. Payment shall be made
-by check and made payable to the "N.C. Department of Environment! and Natural Resources,
Division of Water Quality" (or. "NCDENR, DWQ"); and delivered to',the`following address:
Jane Oliver
Assistant Attorney General
N.C. Department of Justice
Environmental Division -
9001 Mail.Service Center .
Raleigh; North Carolina 27699-9001
•.3.. .Petitioner expressly agrees that, if the terms of Paragraph. two (2) of this
Agreement are violated,it waives, for purposes of, collecting any sums due hereunder, any and
all defenses to the underlying civil penalty assessment contested by Petitioner in this matter and
that the. issue in any action to collect will be limited to issues of compliance with this agreement.
4. Nothing .in this Agreement shall restrict the right of DWQ to inspect or take
enforcementaction against the Petitioner for any new or subsequent violations of its permit or
State water quality statutes. and the relevant rules. promulgated thereunder. Similarly, nothing in.
this 'Agreement shall restrict the right of the Petitioners , to contest a new or subsequent
enforcement action arising outside of the March 23, 2011 (DENR No. LV-2011-0056) civil
penalty assessment. ,

5. The parties agree that the consideration for .this :settlement is the promises
contained herein and that this Agreement contains the whole agreement between them.
6. This Agreement shall be binding upon the parties, their successors and assigns,
upon execution by the undersigned, who represent and warrant thatthey are authorized to enter
into this agreement on behalf of the parties hereto.
. 7. Petitioner and Respondent agree that, forpurposes 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 all
sums payable to the Respondent pursuant to this Agreement are nor dischargeable in bankruptcy
under 11 U.S.C. § 523. Nothing in this Agreement releases any nondischargeability claims that
may be asserted by the Respondent in any bankruptcy proceeding, arid nothing in this Agreement
shall be deemed a waiver of the 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 nondischargeable.
WITHDRAWAL OF PETITION
1. Entry of this Agreement serves as Petitioners' Voluntary Withdrawal with
Prejudice of their Petition for Contested Case Hearing in this matter. The parties agree that this
matter is concluded and that no further proceedings are needed
contested case.
FOR LAKE CRE K DEVELOMENT:
D. Stephen Jones,
Vice President
Date:
-6/5711
3
or required to resolve the
FOR NCDENR; DWQ:
Steph4 A Barnhardt, L.G.
Regional Aquifer Protection Supervisor
Date: 0, e,v- Zd t

R.OY COOPER
ATTORNEY GENERAL
Lake Creek Corporation
Attn: D. Stephen Jones
33 West Bay, Ridge Road
Harrells,.NC 28444
STATE OF NORTH CAROLINA
DEPARTMENT OF JUSTICE ,
P.O. Box 629
RALEIGH, NC 27602
January 5, 2012
RE: Lake Creek Corporation v. NC DENR;
11 EHR 5142; LV 2011-0056
JAN 0 6 2012
DWQ
REPLY TO:
JANE L. OLIVER
ENVIRONMENTAL DIVISION
TEL: [phone]
FAX: (919) 716;6767
[e-mail]
Dear Mr. Jones:
We are writing regarding the above -referenced case between Lake Creek Corporation and.
the Department of Environment and Natural Resources (the Department)On August 9, 2011,
the parties executed a Settlement Agreement to resolve the contested case which was filed by
Lake Creek Corporation in the Office of Administrative Hearings. Pursuant to the Settlement
Agreement, Lake Creek Corporation agreed to pay the Department's Division of Water Quality
two thousand forty-one dollars and fifty-six cents ($2,041.56) within thirty (30) days of the
execution of the Settlement Agreement. The payment was to be sentito this office, as set forth in
the Settlement Agreement.
Our records show Lake Creek Corporation has failed to comply with" the terms of the
Settlement Agreement. Specifically, Lake Creek Corporation failed to deliver a check in the
amount of $2,041.56 made payable to the N.C. Department of; Environment and Natural
Resources, Division. of Water Quality (or NC DENR, DWQ) to this office on or before
September 8, 2011. Therefore, Lake Creek Corporation is clearly in:breach of material terms of
the Settlement Agreement.
• By the letter, .we urge Lake, Creek Corporation to immediately take steps necessary to
comply with the. requirements of the Settlement .Agreement: ' , We are asking that, Lake Creek
Corporation deliver payment'in'the amount of two "thousand forty-orie dollars 'arid fifty-six cents
.($2,041.56) by check made payable to the NC DENR, DWQ within fifteen (15) days of the date
'Of this letter; i.e., by January 20, 2012. A failure to comply with the terms of this letter will
subject Lake: Creek Corporation to, further legal action to enforce the terms of the Settlement

Letter to Lake Creek Corporation
January 5, 2012
Page 2
Agreement. -
We have attached a copy of the Settlement Agreement for
Thank you for your prompt attention to this matter.
Sincerely,
your convenient reference.
Jane L. Oliver
Assistant Attorney General
cc: H. Clifton Hester, Jr., Attorney for Lake Creek Corporation
Stephen A. Barnhardt, Regional Supervisor, Aquifer Protection Section, DWQ
Ed Hardee, Land Application Unit, Aquifer Protection Section, DWQ
File
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