NC0058637_Regional Office Physical File Scan Up To 12/13/2022

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State of North Carolina
..Department of Natural Resources and Community Development
Asheville Regional Office
James G. Martin, Governor S. Thomas Rhodes, Secretary
MEMORANDUM
TO:
THROUGH:
FROM:
SUBJECT:
DIVISION OF ENVIRONMENTAL MANAGEMENT
WATER QUALITY SECTION
January 7,08
L. P. Benton Jr., Deputy Director
Division of Environmental Management
Roy M. Davis, Regional Supervisor
Division of Environmental Management
Forrest R. Westall
Water Quality Regional Supervisor
William E. Anderson, Environmental Technician
Asheville Regional Office
Enforcement Recommendation
Gem City Mine
NPDES Permit Number NCO058637
Macon County, North Carolina
Attached.is an Enforcement Action Report recommending revocation
of NPDES Permit Number NCO058637 and the assessment of civil penalties
against Gem City Mine,.a tourist gem mine, for failure to submit
monthly monitoring reports through October, 1986, and for failure to
comply with NPDES Permit Number NCO058637 in that there is a surface
water stream flowing through the final settling basin. On July 25,
1986, a civil penalty (W 86-13) was assessed against Ernest A. Klatt
and Ernest F. Klatt a/b/a Gem City Mine in the amount of $6,500.00 for
failure to submit monthly monitoring reports through May, 1986, and
for other permit violations. This penalty has subsequently been
turned over to the Attorney General's Office for collection.
Since the as bs, me t o z ivjl penalties the Klatts have been sent
three Notices of eotember 24, 1986; October 13, 1986; and
November 14, 1986) for failure to submit monitoring reports. A meet-
ing with Ernest F. Klatt on October 7, 1986, at the Ruby Mine site by
Forrest R. Westall and W. E. Anderson has not had any positive effect. -
Interchange Building, 59 Woodfin Place, P.O. Box 370, Asheville, N.C. 28802-0370 • Telephone [phone]
An Equal Opportunity Affirmative Action Employer

I. Findings and Decision of the
_.4. Director W 86-13 ->

II. Letter from Ernest F. Klatt
dated August 29, 1986

III. Letter to Ernest F. Klatt
/ Forrest R. Westall'9'
1 dated September 4, 1986

1 Jul
IV. Notice of Non -Compliance
central files memo 4
dated September 24, 1986

V. Memo to file from Forrest R.
Westall—'3*
dated October 7, 1986

VI. Notice of Non -Compliance
dated October 13, 1986

VII . Inspection Report rr AT..1 + ��
n%e,T i ce o�-Non-Compliance central file
memo tq^
dated October 17, 1986

VIII. Notice of Non -Compliance
A� d central files memo
dated November 14, 1986

IX. Notification of Recommendation
for the assessment of civil
penalties
dated November 18, 1986

X. Letter from Ernest A. (Al) Klatt
dated December 9, 1986

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Xi. Memo to file f-r6m Roy M. Davis
EP& pet_ 12, 1986

STATE OF NORTH CAROLINA
COUNTY OF WAKE
IN THE MATTER OF:
ERNEST F. KLATT AND ERNEST
KLATT, d/b/a GEM CITY MINE,
MACON COUNTY, (W 86-13)
FOR VIOLATIONS OF:
NPDES PERMIT NO. NCO058637
AND G.S. 143-215.1, CONTROL
SOURCES OF WATER POLLUTION;
PERMITS REQUIRED.
NORTH CAROLINA
ENVIRONMENTAL MANAGEMENT COMMISSION
A. )
OF)
FINDINGS AND DECISION
OF THE DIRECTOR
DIVISION OF
ENVIRONMENTAL MANAGEMENT
Acting pursuant to North Carolina General Statutes (G.S.)
143-215.6 and North Carolina Environmental Management Commission
(Commission) Regulation Title 15 North Carolina Administrative
Code (NCAC) 2J .0003, I make the following:
I. FINDINGS OF FACT:
A. Ernest F. Klatt and Ernest A. Klatt, d/b/a Gem City
Mine, (hereinafter the Klatts) are in the business of
operating a mine for tourists.
B. The Klatts were issued NPDES Permit No. NCO058637 on
October 1, 1984 with an expiration date of September
30, 1989. The Klatts are authorized to discharge
wastewater from three inorganic solidSsettling ponds
(Facility) on N.C. Highway 441 in Macon County into an
unnamed tributary to Rabbit Creek which is classified
Class "C-Trout" waters. The Facility is composed of two
primary settling ponds and one final settling pond.
C. On October 16, 1985, staff of the Asheville Regional
Office (ARO) inspected the Facility and found that both
primary ponds were filled with sediment. The final
settling pond was dry, and the bank enclosing the final
settling pond had been breached, allowing the pond to
drain. The Klatts did not apply for nor receive a
permit for the breach of the bank which caused the pond
to drain. NPDES Permit No. NCO058637 did not allow the
breach and draining of said settling pond.

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D. On October 16, 1985, ARO staff took samples of the
effluent from the Facility. The results of said
sampling are as follows:
Time ' Total Suspended Solids
11:40 am 190 mg/1
12:40 pm 490 mg/1
E. Part I, A. (1)., Effluent Limitations and Monitoring
Requirements of NPDES Permit No. NCO058637 specifies
that the Discharge Limitation for Total Suspended
Solids for the Facility is:
Daily Average Daily Maximum
50 mg/l 75 mg/l
F. The Division of Environmental Management (DEM) has
never received any monthly monitoring reports from the
Klatts regarding the Facility since the effective date
of the permit. Part I, A. (1) of NPDES Permit No.
NCO058637 requires that Flow, Settleable Matter, Total
Suspended Solids and Turbidity all be measured twice a
month. Part I, C. of said permit requires the
submission of the results of said measurements to be
submitted to DEM on a Monthly Monitoring Report Form.
G. By letter dated October 10, 1985, a Notice of
Noncompliance was sent to Ernest Klatt, Gem City Mine,
for failure to submit self -monitoring reports for 1985.
H. By letter dated January 10, 1986, a Notice of
Noncompliance was sent to Ernest Klatt, Gem City Mine,
for the October 16, 1985, violations of the total
suspended solids effluent limitation of the permit and
for the modification of the treatment works, G.S.
143-215.1 (a)(3).
I. The costs of the investigation total $1,500.00
Based upon the above Findings of Fact, I make the following:
II. CONCLUSIONS OF LAW:
A. Ernest F. Klatt and Ernest A. Klatt, d/b/a Gem City
Mine, is a "person" within the meaning of G.S.
143-215.6 pursuant to G.S. 143-213(14).

B.
C.
D.
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The Facility described in
"treatment works" within
143-213(17).
NPDES Permit No. NC0058637
143-215.1.
Paragraph B above is a
the meaning of G.S.
is required by G.S.
Part I. A.(1) and C. are terms, conditions or
requirements of said permit.
E. Ernest F. Klatt and Ernest A. Klatt, d/b/a Gem City
Mine, violated NPDES Permit No. NC0058637 to the manner
and extent as described in paragraph I. D. and E. above
on one (1) occasion when the effluent limitation for
Total Suspended Solids was exceeded.
F. Ernest F. Klatt and Ernest A. Klatt, d/b/a Gem City
Mine, violated NPDES Permit No. NC0058637 to the manner
and extent as described in paragraph I. F. above on
twenty (20) occasions when they failed to submit
monthly Monitoring Reports for the months of October
1984 through May 1986.
G. Ernest F. Klatt and Ernest A. Klatt, d/b/a Gem City
Mine, violated G.S. 143-215.1(a)(3) to the manner and
extent as described in paragraph I. C. above on one (1)
occasion when they altered, extended or changed the
construction or method of operation of its treatment
works without applying for or securing a permit for
said activity.
H. General Statute 143-215.6 provides that a civil penalty
of not more than ten thousand dollars 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 G.S. 143-215.1 or who is
required but fails to secure a permit required by G.S.
143-215-.1.
I. General Statute 143-215.3(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 Environmental Management Commission or
violates any terms or conditions of any permit issued
pursuant to G.S. 143-215.1.
J. The Director, Division of Environmental Management,
pursuant to Regulation 15 NCAC 2J .0003, has the
authority to assess civil penalties.

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Based upon the above Findings
Law, I make the following:
III. DECISION•
of Fact and Conclusions 'of -
Pursuant to G.S. 143-215.6 and 15 NCAC 21 .0006, in
determining the amount of the penalty, I have- taken into
account the Findings of Fact and Conclusions of Law and
considered the degree and extent of harm caused by the
violation, and the cost of rectifying the damage.
Accordingly, Ernest F. Klatt and Ernest A. Klatt, d/b/a
Gem City Mine, shall be, and hereby are, assessed a civil
penalty of:
$ /paD.04 for violation of NPDES Permit No. NC0058637
on one (1) occasion by exceeding the effluent
limitation for Total Suspended Solids;
$ 00.00 for violation of NPDES Permit No. NC0058637
on thirteen (13) occasions by failing to
submit Monthly Monitoring Reports from
October 1984 through October 1985;
$ 6 0e, 00 for violation of NPDES Permit No. NC0058637
on three (3) occasions by failing to submit
Monthly Monitoring Reports from November and
December 1985, and January 1986;
for violation of NPDES Permit No. NC0058637
on four (4) occasions by failing to submit
Monthly Monitoring Reports from February
through May 1986;
$, S©�• ®d for violation of G.S. 143-215.1(a)(3) on one
(1) occasion by altering, extending, or
changing the construction or method of
operation of its treatment works; and
$1,500.00 for costs of the investigation.
The total penalty assessed is $ 61 J`ivo • ©o

III. TRANSMITTAL•
The Office
these Findings
Ernest F. Klatt
accordance with
-5-
of Legal Affairs is directed to transmit
of Fact, Conclusions of Law and Decision to
and Ernest A. Klatt, d/b/a Gem City Mine, in
Regulation 15 NCAC 21 .0007. l
�s Jw ,
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(Date) R. Paur Wilms, Director
Division of Environmental Management

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® RUBY CITY GEM'
44 Main Street
FRANKLIN, NORTH CAROLINA 28734
Ejeme)
LETTER
[phone] Date . August 29, 1986
To Mr. Forrest R. Westall Subject
Regional Engineer Citation
Division of Environmental Management.....
Water Quality Section
State of North Carolina
Ashevi-lle Regional Office
Asheville, MI C. 28802
Dear Mr. Westall';'
We are writing in regard to your letter of September 4, 1985 in,which you
stated that the most appropriate way to control the quality of effluent
from Tourist Gem Mines is through the use of best management practices which
you explained in your letter.
Now we are being cited for violation of NPDES Paermit # NC 0058637 an& N. C.
General Statute 143-215.1. "
We don't understand this action being taken by your department after your
investigation stated otherwise.
Please address your reply to me: Ernest F. Klatt at the above address instead
of my son.
.Sincerely,
Ernest F. Klatt
FORM 180-2 Available from ess Inc., Groton, Mass. 01450

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State of North Carolina
Department of Natural Resources and Community Development
Asheville Regional Office
James G. Martin, Governor S. Thomas Rhodes, Secretary
DIVISION OF ENVIRONMENTAL MANAGEMENT
WATER QUALITY SECTION
September 4, 1986
Mr. Ernest F. Klatt
r _
44 Main Street
Franklin, North Carolina 28734
Dear Mr. Klatt:
I have received your letter dated August 29, 1986, concerning the
Ruby City Gem Mine. In referring to my September 4, 1985, letter you
failed to mention that you received additional correspondence
concerning wastewater treatment at your mine. The Best Management
Practices permit applies only if you submit information in accordance
with Mr. Bill Anderson's October 22, 1985, letter to you and receive
approval from my Division. You have-not been approved as a Best
Management Practice operation and you have not been relieved of permit
monitoring requirements.
The opportunity extended to you to apply for a Best Management
Practices permit was offered to all discharging gem mines in the
Franklin area. This information in no way relieved you of your
responsibilities to comply with all exisiting permit requirements. In
addition, as stated in the civil penalties assessment notice letter,
the current enforcement action doesn't remove the possibility of
additional action for any continuing or new violations. Your permit
remains the legal authorization to discharge wastewater and failure to
comply with its requirements subjects you to enforcement action.
Until you have properly applied for and received a modification to
your permit, as we have described to you in previous correspondence,
you are not considered to be operating a Best Management Practices
treatment process.
Interchange Building, 59 Wbodfin Place, P.O. Box 370, Asheville, N.C. 28802-0370 e Telephone [phone]
An Fnual Clnnnrmriry arrirt„aHvt� arfino F—love,

Mr. Ernest F. Klatt
September 4, 1986
Page Two
I am sending copies of your letter and this response to Ms.
Yvonne C. Bailey of the Office of Legal Affairs.
Sincerely,
0
orrest R. Westall
Water Quality Regional Supervisor
FRW:ls
xcd Yvonne Bailey
Ernest A. Kla�t
Bill Anderson•/

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S Tl ornas Rhodes; :Secretary
.' DIVISION OF ENVI,RONMENTAV MANAGEMENT
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f . NPDES Permit Number
.att ".
p `of theJ monthly self monitoring files for.:.Gem, City Mine,
y, :North Caro_l�:na; indeates that- -the: monthly. . self -monitor
fort �3uly=: 1986, has not :been deceived. „
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Sections 2P. OS06 =of yTitle 1"5 of the r NorthCaro;lina» Administrative
s ryCodez requlkr�es these*.Ymonitoring reports be f�.].ed r monthly ono dater. ;than
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report is rnade4 and that ally required data bey ;reported
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4s Please notify,me in; wri ting #by October 1'S , 19'8 6 , was a tog why th:s
repaVt 4'kas Snot subt tti s
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Forest. R. ,Westall
f Water .Quality Regional,Superv�SOT
,RIW WEA is .r '
Interchange;Building,'-PlaceBoz7370 Asheville NG:,`J8 2-0370 s.Telephond'704253-,B41
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An Ecual Onoorruniry Affirmative Action Emnlnver

DIVISION OF ENVIRONMENTAL MANAGEMENT
Information Services Branch
September 24, 1986
M E M O R A N D U M
TO: Bill Anderson
FROM: Janet Rooks
SUBJECT: Self Monitoring Report
Central Files has not received any self monitoring reports for
Gem City Mines (NPDES Permit # 58637) as of September 23, 1986.
If any further questions please feel free to call.
RECEIVED
**"*r 0"11ty ®ivislon
SEP 26 1986
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State of North Carolina
Department of Natural Resources and Community Development
Asheville Regional Office
James G. Martin, Governor S. Thomas Rhodes, Secretary
DIVISION OF ENVIRONMENTAL MANAGEMENT
WATER QUALITY SECTION
October 13, 1986
Mr. Ernest F. Klatt
Gem City Mine
44 East Main Street
Franklin, North Carolina 28734
Subject: Notice of Non -Compliance
NPDES Permit Number NCO058637
l.. s
a000un'y', North Carolina
Dear Mr. Klatt:
On October 7, 1986, Bill Anderson and I inspected the wastewater
treatment facility which serves Gem City Mine and found that the
facility was in non-compliance with NPDES Permit Number NCO058637
because there is a surface water stream flowing through the final
settling pond and also because required monthly monitoring reports for
July and August 1986 have not been submitted.
As we discussed at the inspection, I have enclosed information on.
"Best Management Practices" (BMP) for Tourist Gem Mines. In order to
comply with BMP, you will need to: 1) Apply for a BMP Permit, 2)
Remove the surface water stream from the existing pond, 3) enlarge the
final settling pond, 4) install influent and effluent structures and 5)
control the flow rate through the flume line. Additionally, you should
be aware that unless you are otherwise notified, your current permit
will remain in effect until a "Best Management Practices" permit is
issued. Monitoring and reporting will be required until compliance
with "Best Management Practices" is achieved.
Interchange Building, 59 Wbodhn Place, P.O. Box 370, Asheville, N.C. 28802-0370 0 Telephone [phone]

Mr. Ernest F. Klatt
October 13, 1986
Page Two
We are very interested in your achieving compliance with State
requirements. Please review carefully the attached information and
submit the necessary information for modification of your treatment'
system before work begins. If you have any questions, please contact,
Bill Anderson or me at 704/253-3341.
Sincerely,
pa
Forrest R. Westall
Water Quality Regional Supervisor
FRW:WEA:1s
Enclosure

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State of North Carolina
Department of Natural Resources and Community Development
Asheville Regional Office
James G. Martin, Governor
Mr. Ernest A. Klatt
Gem City Mine
44 East Main Street
Franklin, North Carolina 28734
Dear Mr. Klatt:
S. Thomas Rhodes, Secretary
DIVISION OF ENVIRONMENTAL MANAGEMENT
WATER QUALITY SECTION
October 17, 1986
Subject: Notice of Non -Compliance
15NCAC2B.0506
Reporting Requirements
NPDES Permit Number NCO058637
*wG rt &il ink".
_,joM c»6i;iwCem-, North Carolina
Review of the monthly self -monitoring files for Gem City Mine,
Macon County, North Carolina, indicates that the monthly self -monitor-
ing report for August, 1986, has not been received.
Section 2B.0506 of Title 15 of the North Caroline Administrative -
Code requires these monitoring reports be filed monthly no later than
thirty (30) days after the end of the reporting period for which the
report is made and that all required data be reported.
Please notify me in.writing by November 15, 1986, as to why this
report was not submitted.
Sincerely,
Forrest R. Westall
Water Quality Regional Supervisor
FRW:WEA:1s
xc: Gil Wallace, EPA
Yvonne Bailey, Office of Legal Affairs
Interchange Building, 59 Woodfin Place, P.O. Box 370, Asheville, N.C. 28802-0370 4 Telephone [phone]
.An Faual O000rtunity .Affirmative Action Fmnlnver

United_Slates nv"onmental roteetion_Agency
-Washington,D. C. 20460 -
�fm �proV6.d
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OMB-No.lExpir
If&EP_ NPDES
Compliance Inspection Report
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Approval Expires 7-31-85
Section A: National Data System Coding
Transaction Code NPDES
1LJN 2 J5 JMI C10101S1F161317111
yr/mo/day Inspection Type Inspector Fac Type
1��f'16 It 10 10 171 17 1 ,9u 2d2
IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII.IIIIII
Remarks
Reserved Facility Evaluation Rating
BI QA ------------------ Reserved -----------------
66
67�U 69 70u
71u 72 73W 74 75 I I I I 1180
Section B: Facility Data
Name and Location of Facility Inspected
r1.�e
Entry Time aAM ❑ PM
10ITO
Permit Effective Date
i dot 8�-
14aCen C'vcn Tj /Vy,
Exit Time/Date
Permit Expiration Date
% �
To Se 1 pP
Name(s) of On -Site Representative(s)
Title(s)
Phone No(s)
Name, Address of Responsible Official
Title
Frsvesf Klan
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yIt C- Julai" 'S-r
Fvan �i�� N.C. �973L
Phone No.
CC ntacted
❑
LJ Yes No
Section C: Areas Evaluated During Inspection
IS = Satisfactory, M = Marginal, U = Unsatisfactory, N = Not Evaluated)
Permit
Records/Reports
Facility Site Review
Flow Measurement
Laboratory
Effluent/Receiving Waters
Pretreatment
Compliance Schedules
Self -Monitoring Program
Operations & Maintenance
Sludge Disposal
Other:
IV
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Section D: Summary of Findings/Comments (Attach additional sheets if necessary)
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Names) and Si natures) of Inspector(s)
(;(%' '• (�n�@✓dory
Agency/Office/Telephone
Date.
Ike .3 33 �f17t
Signature of Reviewer
Agency/�Of%fiicce°
Date
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Regulatory Office Use Only
Action Taken
Date
Cofnpliangg Status
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Noncompliance
❑ Compliance

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State of North Carolina
Department of Natural Resources and Community Development
Division of Environmental Management
512 North Salisbury Street • Raleigh, North Carolina 27611
James G. Martin, Governor
S. Thomas Rhodes, Secretary
October 16, 1986
M E M O R A N D U M
TO: Bill Anderson
FROM: Janet Rooks `�-
SUBJECT: Self Monitoring Reports
R. Paul Wilms
Director
Central Files has not received any Self Monitoring Reports from
Gem City Mines (NPDES Permit # 58637) as of Oct. 16, 1986.
If you need any additional information, please feel free to
call.
JR/rdp
RECEIVED
'at r Quality Divis.lon
OCT 21 1986
Pollution Prevention Pays
P.O. Box 27687, Raleigh, North Carolina 27611-7687 Telephone [phone]
An Equal Opportunity Affirmative Action Employer

State of North Carolina
Department of Natural Resources and Community Development
Asheville Re_ional Office
_tames G. t\larrin, Governer S. Thomas Rhodes, Secretary
DIVISION OF ENVIRONMENTAL MANAGEMENT
WATER QUALITY SECTION
November 14, 1986
Mr'. Ernest A. Klatt
Gem City Mine
44 East Main Street _
Franklin, North Carolina 28734
Subject:- Notice of Non -Compliance
_ 15NCAC2B.0506
Reporting Requirements
- NPDES Permit Number NCO058637
Gem City Maine
Macon County, North Carolina
Dear Mr. Klatt:
Review of the monthly self -monitoring files for Gem City ?dine,
Macon County, North Carolina, indicates that the monthly self -monitor-
ing report for September, 1986, has not been received.
Section 2B.0506 of Title 15 of the North Carolina Administrative
Code requires these monitoring reports be filed monthly no later than
thirty (30) days after the end of the report-inc period for which ti:e ,
report is made and that all required data be reported.
Please notify me i_7 writing by December 15, 1986, as to why this
report was not submitted.
Sincerely,
rorrest R. Westall
Water Quality Regional Supervisor
FRW: WEA: 1s
xc: Yvonne Bailey, Office of Legal Affairs
L trr han r 1-'.uddt1I1z ;y \:u<,dtt:a !'late IV ik..:-t .,> .rc1ic N.C. _'88(1.;-0;70 ]cIephone 0.

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State of North Carolina
bepartment of Natural Resources and Community Development
Division of Environmental Management
512 North Salisbury Street • Raleigh, North Carolina 27611
James G. Martin, Governor
S. Thomas Rhodes, Secretary
Information Services Branch
November 12, 1986
MEMORANDUM
TO: Bill Anderson
FROM: Janet Rooks
pl�
SUBJECT: Self Monitoring Reports
Central Files has not received any self monitoring reports for
Gem City Mines (NPDES Permit # 58637) as of November 12, 1986.
If you need any additional information, please feel free to
call.
J R/ rdp
Pollution Prevention Pays
R. Paul Wilms
Director
P.O. Box 27687, Raleigh, North Carolina 27611-7687 Telephone [phone]
An Equal Opportunity Affirmative Action Employer

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State of North Carolina
Department of Natural Resources and Community Development
Asheville Regional Office
James G. Martin, Governor S. Thomas Rhodes, Secretary
DIVISION OF ENVIRONMENTAL MANAGEMENT
WATER QUALITY SECTION
November 18, 1986
CERTIFIED MAIL
RETURN RECEIPT REQUESTED
Mr. Ernest F. Klatt
Gem City Mine
44 East Main Street
Franklin, North Carolina 28734
Subject: Notification of the Recommendation
for the Assessment of Civil Penalties
and Revocation of NPDES Permit
Number NCO058637
Gem City Mine
Macon County, North Carolina
Dear Mr. Klatt:
Since the assessment of civil penalties against Gem City Mine
on July 25, 1986, for violations of NPDES Permit Number NCO058637
and North Carolina General Statute 143-215.1(2)(3), you have been
notified of the continuing non-compliance of the Gem City Mine
wastewater treatment facility. You were notified by letter on
September 4, 1986, September 24, 1986, October 13, 1986, October
17, 1986, and November 14, 1986, (see attached) and in person on
October 7, 1986. As of this date, you have not responded to any of
these notices.
In view of the above, an additional recommendation for the
assessment of civil penalties as provided for by North Carolina
General Statute 143-215.6 and revocation of NPDES Permit Number
NCO058637 as provided for by North Carolina General Statute 143-
215.1(b)(3) will be made to the Director of the Division of
Environmental Management. You will be notified of his decision.
Interchange Building, 59 \Voodfin Place, P.O. Box 370, Asheville, N.C. 28802-0370 ® Telephone [phone]
An Equal Opporrunitv Affirmative Action Emnlover

Ernest F. Klatt
November 18, 1986
Page Two
If you have any comments or wish to make known to me any
pertinent facts, please do so in writing no later than December 15,
1986.
Sincerely,
orrest Vtt?
Water Quality Regional Supervisor
FRW:WEA:1s
xc: Ernest A. Klatt
Yvonne Bailey, Legal Affairs
Mark Payne

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III DATE:
PRIORITY
R RUBY CITY GEMS °�� � , `� " % � � ❑ URGENT!
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44 Main Street
M FRANKLIN, NORTH CAROLINA 28734 ❑ NO REPLY NEEDED
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State of North Carolina
Department of Natural Resources and Community Development
Asheville Regional Office
James G. Martin, Governor S. Thomas Rhodes, Secretary
DIVISION OF ENVIRONMENTAL MANAGEMENT
WATER QUALITY SECTION
December 12, 1986
MEMORANDUM
TO: Mark Payne
Yvonne Bailey
Forrest Westall ✓
FROM: Roy M. Davis
SUBJECT: Gem City Mine
Macon County, North Carolina
In telephone conversation with Mr. Ernest A. (Al) Klatt on
December 12, 1986, I offered four ?feces of excellent advice. It was
as follows:
1. Submit to us plans and specifications for the Best Manage-
ment Practices Wastewater Treatment System to serve your
Gem City Mine.
2. Request Authorization to Construct this Best Management
Practices Wastewater Treatment System.
3. Request that your NPDES be modified to remove self -monitor-
ing requirements after you have constructed the Best
Management Practices Wastewater Treatment System.
4. Work with Mark Payne of the N. C. Attorney Generals Office
at telephone number 704/251-6083 to resolve the outstanding
enforcement action.
Attached for your information is a copy of a December 9, 1986,
note from Mr. Al Klatt.
RMD:1s
Enclosure
Interchange Building, 59 Woodfin Place, P.O. Box 370, Asheville, N.C. 28802-0370 C Telephone [phone]I
An Equal Onpornmin Aftirmarive Acm,n tmiilwcr

WE I

47�7
l7 A =
State of North Carolina
Department of Natural Resources and Community Development
Asheville Regional Office
James G. Martin, Governor Ann B. Orr
William W. Cobey, Jr., Secretary Regional Manager
DIVISION OF ENVIRONMENTAL MANAGEMENT
WATER QUALITY SECTION
May 10, 1989
MEMORANDUM
TO: Mark Payne
Assistant Attorney General
FROM: Roy M. Davis, Regional Supervisor
Division of Environmental management
SUBJECT: Gem City Mine Settlement Request
Macon County, North Carolina
The staff of the Asheville Regional Office Water Quality Section,
believe that remission of civil penalties against Gem City Mine is not
warranted. Current compliance with the permit is based upon Gem City
meeting "Best Management Practices". Best Management Practices for
tourist gem mines were devised so that self -monitoring is not required
and that compliance is assured so long as the system is not allowed to
completely deteriorate. As a review of the original assessment package
will illustrate, Mr. Klatt/Gem City was encouraged to adopt BMP's at
the treatment facility on a number of occasions prior to the assessment
of penalties and the owner failed to respond. It was only after the
assessment that the owners of Gem City made the necessary modifications
to the treatment system to qualify for BMP status. Therefore, the
facility's current compliance with the permit does not indicate, as
claimed by the request for settlement, any cooperative effort on the
part of the owners prior to the time assessment was made. It is our
opinion that there have been no new facts which invalidate the original
findings.
If you have any questions, please let me know.
RMD:WEA j /
xc: Forrest R. Westall/Bill Anderson
Interchange Building, 59 Woodiin Place. Asheville, \I.C. 28801 0 telephone [phone]
A i-rn ,I Cl- ",r .. "I.. ... ,.... % - .....1 . .

ti
Permit No. NC0058637
STATE OF NORTH CAROLINA
DEPARTMENT OF NATURAL RESOURCES AND COMMUNITY DEVELOPMENT
DIVISION OF ENVIRONMENTAL MANAGEMENT
PERM.I T
TO DISCHARGE WASTEWATER UNDER THE
NATIONAL POLLUTANT DISCHARGE ELIMINATION SYSTEM
In compliance with the provisions of North Carolina General Statute 143-215.1,
other lawful standards and regulations promulgated and adopted by the North Carolina
Environmental Management Commission, and the Federal Water Pollution Control Act, as
amended,
Ernest A. Klatt
and
Ernest F. Klatt
is hereby authorized to discharge wastewater from a facility located at
Gem City Mine
U. S. Highway 23/441
East of Franklin
Macon City
to receiving waters designated as an unnamed tributary to Rabbit Creek in the
Little Tennessee River Basin
in accordance with effluent limitations, monitoring requirements, and other
conditions set forth in Parts I, II, and III hereof.
This permit shall become effective
This permit and the authorization to discharge shall expire at midnight on
Signed this day
ILA
R. Paul Wilms, Director
Division of Environmental Management
By Authority of the Environmental Management Commission

!:
Permit No. N00058637
SUPPLEMENT TO PERMIT COVER SHEET
Ernest A. Klatt and Ernest F. Klatt
is hereby authorized to:
1. Continue to operate an existing inorganic solids settling basin located
at Gem City Mine, on U. S. Highway 23/441, East of Franklin, in Macon
County (See Part III of this Permit);
2. Discharge from said treatment works at the location specified on the
attached map into an unnamed tributary to Rabbit Creek which is classified
Class "C-Trout" waters in the Little Tennessee River Basin.

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A. ( ). EFFLUENT LIMITATIONS AND MONITORING REQUIREMENTS
During the period beginning on the effective date of the permit and lasting until expiration, the Permittee
is authorized to discharge from outfall(s) serial number(s) 001. Such discharges shall be limited and
monitored by the Permittee as specified below:
Effluent Characteristics Discharge Limitations Monitoring Requirements
lbs/day Other Units (Specify) Measurement Sample Sample
Daily Avg. Daily Max. Daily Avg. Daily Max. Frequency Type Location
The following "Best Management Practices" shall apply to this facility:
1) Restrict the flow to the flume to a minimum known value.
2) Provide twenty-four hours of detention time in the final settling pond.
3) Eliminate flow to the flume when it is not in use.
4) Construct influent and effluent structures to maximize the efficiency of the pond.
The pH shall not be less than N/A standard units nor greater than N/A standard units and shall be
monitored weekly at the effluent by grab samples.
There shall be no discharge of floating solids or visible foam in other than trace amounts.
M3 NC000058637

A. ( ). EFFLUENT LIMITATIONS AND MONITORING REQUIREMENTS Final In the event the "Best Management Practices"
fail or are not used, the following limitations and monitoring shall apply:
During the period beginning on the effective date of the permit and lasting until expiration, the Permittee
is authorized to discharge from outfall(s) serial number(s) 001. Such discharges shall be limited and
monitored by the Permittee as specified below:
Effluent Characteristics Discharge Limitations Monitoring Requirements
Flow
Total Suspended Solids
Settleable Solids
Turbidity
lbs/day Other Units (Specify)
Daily Avg. Daily Max. Daily Avg. Daily Max.
0.300 MGD
55.0 mg/1 110.0 mg/1
0.1 ml/1 0.1 ml/1
ya.
Measurement Sample Sample
Frequency Type Location
2/Month Instantaneous E
2/month Grab E
2/month Grab E
2/month Grab U,D
''Sample locations: E - Effluent, U-Upstream, D-Downstream
**The discharge shall not cause the turbidity of the receiving water to exceed 10 NTU. If the
turbidity exceeds these levels due to natural background conditions, the discharge level cannot
cause any increase in the turbidity in the receiving waters.
All samples collected should be of a representative discharge.
The pH shall not be less than 6.0 standard units nor greater than 9.0 standard units and shall be
monitored weekly at the effluent by grab samples.
There shall be no discharge of floating solids or visible foam in other than trace amounts.
M3 NC000058637

Part III
Permit No. NCO058637
F. Toxicity Reopener
This permit shall be modified, or revoked and reissued, to incorporate toxicity
limitations and monitoring requirements in the event toxicity testing or other
studies conducted on the effluent or receiving stream indicate that detrimental
effects may be expected in the receiving stream as a result of this discharge.
G. In the event that violations of the turbidity standard of the North Carolina
Water Quality Standards occur as a result of this discharge, this permit shall
be modified or alternately. revoked and reissued to incorporate limitations
sufficient to protect the receiving water.
H. The wastewater treatment facilities shall be properly maintained and operated
at all times.
I. Diversion or bypassing of untreated wastewater from the treatment facility is
prohibited.
J. Solids removed or resulting from the wastewater treatment process shall be
contained and disposed of in such as manner as to prevent any contamination of
surface water of the State.
K. The permittee shall properly connect to an operational publicly owned
wastewater collection system within 180 days of its availability to the site,
if the facility is in noncompliance with its permit effluent limitations for
three consecutive months.

r
• � I
n � SfATF v
,1ihRau,.a.�
State of North Carolina
Department of Natural Resources and Community Development
512 North Salisbury Street * Raleigh, North Carolina 27611
James G. Martin, Governor
William. W. Cobey, Jr., Secretary
HAND DELIVERED
Joseph E. Slate, Jr., Director
Office of Legal Affairs
July 20, 1989 Thomas Hilliard, III
Edwin L. Gavin If
Judith Robb Bullock
Robert R. Gelblum
David G. Heeter
Robin N. Michael
James C. Holloway
Elizabeth E. Rouse
Yvonne C. Bailey
Judge Beecher Gray
Administrative Law Judge
Office of Administrative Hearings
Post Office Drawer 11666
Raleigh, North Carolina 27604
RE: Ernest F. Klatt and Ernest A. Klatt d/b/a Gem City Mine
V. Department of Natural Resources and. Community
Development, Division of Environmental Management,
File No. 89 NRC 0534
Dear Judge Gray:
Enclosed please find a copy of the Prehearing Statements of
Respondent in the above -referenced matter.
Thank you for your cooperation in this matter.
Sincerely, f
01
Yv nne C. Bailey
Agency Legal Specialist
YCB/sd
attachment
cc: R. Paul Wilms
.Roy__ Davis__,1
Steve Tedder
Kent Wiggins
RECEIVED
Water Quality Section
JUL 2 4 1989
PO B= 27687, Raleigh, North Carolina 276117687 Telephone [phone]
An Ecl al Opportunity Affirmative Acdon Employer
Asheville Regional Office
.Asheville, North Carolina

STATE OF NORTH CAROLINA
COUNTY OF MACON
ERNEST F. KLATT AND
ERNEST A. KLATT D/B/A
GEM CITY MINE,
Petitioner
V.
NORTH CAROLINA DEPARTMENT
OF NATURAL RESOURCES AND
COMMUNITY DEVELOPMENT,
DIVISION OF ENVIRONMENTAL
MANAGEMENT
Respondent.
IN THE OFFICE OF
ADMINISTRATIVE HEARINGS
FILE NO. 89 NRC 0534
PREHEARING STATEMENTS
OF RESPONDENT
NOW COMES the Division of Environmental Management of the
North Carolina Department of Natural Resources and Community
Development, Respondent, by and through the undersigned pursuant
to G.S. 150B-33 (b) (4) and Rule 26 NCAC 3 .0004 and files
prehearing statements in the above -captioned matter with the
Office of Administrative Hearings in accordance with its Order of
June 20, 1989.
l.- This matter involves the assessment of civil penalties
against Petitioner in the amount of $6,500.00 on July 25, 1986 by
the Director, North Carolina Division of Environmental
Management. At issue is whether the Petitioners violated
provisions of NPDES Permit No. NCO058637 and G.S. 143-215.1 as
alleged in the Director's Findings and Decision.
The first issue to be resolved is whether the Office of
Administrative Hearings has jurisdiction over the subject matter
of this case or. whether jurisdiction lies with the Macon County
Superior Court.
Controlling statutes, rules, etc. are those cited in the
Director's Decision in addition to G.S. 150B and Title 26,
Chapter 3 of the North Carolina Administrative Code.
2. The Respondent contends that Petitioner violated
environmental pollution control laws of the State of North
Carolina in the manner and to the extent described by the
Director's Findings and Decision dated July 25, 1986.

Petitioner received the Director's Findings and Decision on
or about August 4, ,'1986. Petitioner did not file a 'response to
the civil penalty assessment; therefore, on October 13, 1986,
Respondent- requested the Attorney General to initiate an action
in Superior Court to, collect the civil penalties. Said action
was filed on December 8, 1986, and is pending.
3. Witnesses for the Respondent- include, but are not
limited to, the following Division of Environmental Management
(DEM) employees: William-E.-Anderson and Forrest R. Westall.
4. Respondent, pursuant to G.S. IA-1, Rules of Civil
Procedure, Article 5, plans to limit its discovery to Requests
for Admissions, Production of Documents and Things and
Interrogatories to Parties. Discovery is estimated to take ninety
(90) days.
5. Respondent will discuss the location of the hearing
with Petitioner at the Prehearing Conference.
6. The estimated length of the hearing is one day.
7. Not applicable.
8. Respondent will be ready to have a hearing in this case
after November 1, 1989.
9. Matters of special concern: Respondent intends to file
a Motion to Dismiss for lack of subject matter jurisdiction. The
agency action which -Respondent believes causes the filing of the
contested case Petition is attached hereto.
Respectfully submitted this the 20th day of July, 1989.
(A
Yvo ne C. Bailey
Agency Legal Specialist J
Office of Legal Affairs
N.C. Department of Natural Resources and
Community Development
Post Office Box 27687
Raleigh, North Carolina 27611
[phone]

CERTIFICATE OF SERVICE
I hereby certify that I have caused the attached PREHEARING
STATEMENTS OF RESPONDENT to be served on. Petitioner, by having
same deposited in the United States Mail bearing sufficient
postage for delivery by first class mail and addressed as
follows:
Ernest F. Klatt and Ernest A. Klatt
d/b/a Gem City Mine
44 East Main
Franklin, North Carolina 28734
(A
Dat Yvorlhe C. Bailey
Age cy Legal Specialist
Office of Legal Affairs
N.C. Department of Natural Resources and
Community Development
Post Office Box 27687
Raleigh, North Carolina 27611
[phone]

16 SENDER: Complete items 1, 2,3 and 4.
td
s�.
•
Put your address in the -RETURN TO" space on the
reverse side. Failure to do this will prevent this card frosr
being raturned to you. The return recelot fw will provide
you the name of the person delivered to and the date of
delivery. For edditlonal fee the following services an
available. Consult postmaster for fees and check bo-les)
for service(s) requested
I. Show to whom, date and address of delivery.
1
2. ❑ Restricted Delivery.
3. Article Addressed to: Ernest A. Klatt
Ernest F. Klatt
Gem City Mine
44 East Main Street
Franklin, NC 28734
4. Typw of Service:
Article Number
,❑Registered ❑ Insured
Certified ❑ COD
❑ Express Mail
� 9 h
oS
Always obtain signature of ado.ressee.2Lagent and
DATE DELIVERED.
5. SMature — Addreneqol
x
6. SifinatWe — Agent
x
7. D 0 0 7 ~�
8. Addressee's Address ONL i rtqupr C ar _ee po
GA/ S`

�,. STATt v
State of North Carolina
Department of Natural Resources and Community Development
512 North Salisbury Street S Raleigh, North Carolina 27611
James G. Martin, Governor
July 28, 1986
CERTIFIED MAIL
RETURN RECEIPT REQUESTED
Mr. Ernest F. Klatt.
Ernest A. Klatt
d/b/a Gem City Mine
44 East Main Street
Franklin, North Carolina 28734
S. Thomas Rhodes, Secretary
Subject: Assessment of Civil Penalties for
Violation(s) of NPDES-Permit No. NCO058637
and N.C. General Statute(s) 143-215.1,
Control of Sources of Water Pollution;
Permits Required, Ernest F. Klatt and Ernest
A. Klatt, d/b/a Gem City Mine, Macon County
(WQ 86-13)
Dear Messrs. Klatt:
This letter transmits notice of a civil penalty
assessed against Ernest F. and Ernest A. Klatt d/b/a Gem
City Mine in the amount of $6,500.
Attached is a copy of the assessment document
explaining this penalty. This action was taken by the
Director, Division of Environmental Management, under the
authority vested in him by North -Carolina General Statute(s)
143-215.6. Any continuing violation(s) may be the subject of
a new enforcement action, including an additional penalty.
Within 30 days of receipt of this notice, you must:
(1) Submit payment of the penalty; or
(2) Submit a written request for remission or
mitigation, including a detailed justification for
such request; or
(3) Submit a written request for an administrative
hearing.
P.O. Box 27687, Raleigh, North Carolina 27611-7687 Telephone [phone]
An Equal -Opportunity / Affirmative Action Employer

4
-2-
Additional information about your options is as
follows:
(1) Payment should be made directly to this office.
Payment of the penalty will not foreclose further
enforcement action for any continuing 'or new
violation(s).
(2) A request for remission or mitigation is limited
to consideration of the reasonableness of the
amount of the penalty and is not the proper
procedure for contesting the accuracy of any of
the statements contained in the attached
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 that there are no factual or
legal issues in dispute. You must execute and
return the attached waiver and stipulation form to
this office. Finally, your detailed justification
should include any additional facts which should
have been considered by the Director prior to
assessment, as well as .any documentation relevant
to your inability to pay the penalty.
(3) If you wish to contest any statements in the
attached assessment document, you must request an
administrative hearing. This request must be in
the form of a written petition, conforming to
Chapter 150B of the North Carolina General
Statutes, and filed with the Office of
Administrative Hearings, Post Office Drawer 11666,
Raleigh, North Carolina 27604. A copy of the
petition should be filed with this office.
If you wish to have the hearing before a Hearing
Officer with this Department, you must indicate in
the petition that you waive the right to have the
contested case conducted by a Hearing Officer in
the Office of Administrative Hearings, and wish to
have the matter conducted in the Department of
Natural Resources and Community Development. You
must execute and return the attached waiver and
request form to this office.
Sincerely,
"WAC-, $--P
Yv nne C. Bailey
Ag ncy Legal Specialist
/kw
Attachments

cc: R. Paul Wilms
L. P. Benton
George Everett
Roy Davis

STATE OF NORTH CAROLINA
COUNTY OF WAKE
IN THE MATTER OF ASSESSMENT)
OF CIVIL PENALTIES AGAINST )
Ernest F. and Ernest A. )
Klatt, d/b/a Gem City Mine )
Macon County )
(WQ 86-13) )
ENVIRONMENTAL MANAGEMENT
COMMISSION
WAIVER OF RIGHT TO AN
ADMINISTRATIVE HEARING AND
STIPULATION OF FACTS
Having been assessed civil penalties totalling
$6,500.00 for violation(s) of N. C. General Statute(s)
143-215.1 and NPDES Permit No. NCO058637 as set forth in the
assessment document of the Director, Division of
Environmental Management dated July 25, 1986, the
undersigned, desiring to seek remission of the civil
penalties, does hereby waive its right to an administrative
hearing in the above -stated matter and does stipulate that
the facts are as alleged in the assessment document.
This the day of 1986.
BY
ADDRESS
TELEPHONE

STATE OF NORTH CAROLINA
COUNTY OF WAKE
IN THE MATTER OF ASSESSMENT)
OF CIVIL PENALTIES AGAINST )
Ernest F. and Ernest A. )
Klatt, d/b/a Gem City Mine )
Macon County )
(WQ 86-13) )
ENVIRONMENTAL MANAGEMENT
COMMISSION
PETITION AND
WAIVER OF RIGHT TO AN
ADMINISTRATIVE HEARING BEFORE
THE OFFICE OF ADMINISTRATIVE
HEARINGS AND REQUEST FOR
HEARING BY THE DEPARTMENT OF
NATURAL RESOURCES AND
COMMUNITY DEVELOPMENT
Having been assessed civil penalties totalling
$6,500.00 for violation(s) of N. C. General Statute(s)
143-215.1 and NPDES Permit No. NCO058637 as set forth in the
assessment document of the Director, Division of
Environmental Management dated July 25, 1986, the
undersigned does hereby petition for a hearing in accordance
with N.C.G.S. 150B - 23; waives its right to an
administrative hearing before the Office of Administrative
Hearings in the above -stated matter; and requests pursuant
to N.C.G.S. 150B - 23 that this matter be conducted by a
Hearing Officer with the Department of Natural Resources and
Community Development.
This the day of 1986.
BY
ADDRESS
TELEPHONE

STATE OF NORTH CAROLINA
COUNTY OF WAKE
IN THE MATTER OF:
ERNEST F. KLATT AND ERNEST
KLATT, d/b/a GEM CITY MINE,
MACON COUNTY, (W 86-13)
FOR VIOLATIONS OF:
NPDES PERMIT NO. NCO058637
AND G.S. 143-215.1, CONTROL
SOURCES OF WATER POLLUTION;
PERMITS REQUIRED.
;NORTH CAROLINA
ENVIRONMENTAL MANAGEMENT COMMISSION
A. )
OF)
FINDINGS AND DECISION
OF THE DIRECTOR
DIVISION OF
ENVIRONMENTAL MANAGEMENT
Acting pursuant to North Carolina General Statutes (G.S.)
-143-215.6 and North Carolina Environmental Management Commission
(Commission) Regulation Title 15 North Carolina Administrative
Code (NCAC) 2J .0003, I make the following:
I. FINDINGS OF FACT:
A. Ernest F. Klatt and Ernest A. Klatt, d/b/a Gem City
Mine, (hereinafter the Klatts) are in the business of
operating a mine for tourists.
B. The Klatts were issued NPDES Permit No. NCO058637 on
October 1, 1984 with an expiration date of September
30, 1989. The Klatts are authorized to discharge
wastewater from three inorganic solid settling ponds
(Facility) on N.C. Highway 441 in Macon County into an
unnamed tributary to Rabbit Creek which is classified
Class "C-Trout" waters. The Facility is composed of two
primary settling ponds and one final settling pond.
C. On October 16, 1985, staff of the Asheville Regional
Office (ARO) inspected the Facility and found that both
primary ponds were filled with sediment. The final
settling pond was dry, and the bank enclosing the final
settling pond had been breached, allowing the pond to
drain. The Klatts did not apply for nor receive a
permit for the breach of the -bank which caused the pond
to drain. NPDES Permit No. N00058637 did not allow the
breach and draining of said settling pond.

-2-
D. on October .16, 1985, ARO staff took samples of the
effluent from the Facility. The results of said
sampling are as follows:
Time Total Suspended Solids
11:40'am 190 mg/l
12:40 pm 490 mg/l
E. Part I, A. (1)., Effluent Limitations and Monitoring
Requirements of NPDES Permit No. NCO058637 specifies
that the Discharge Limitation for Total Suspended
Solids for the Facility is:
Daily Average.
50 mg/l
Daily Maximum
75 mg/l
F. The Division of Environmental Management (DEM) has
never received any monthly monitoring reports from the
Klatts regarding the Facility since the effective date
of the permit. Part I, A. (1) of NPDES Permit No.
NCO058637 requires that Flow, Settleable Matter, Total
Suspended Solids and Turbidity all be measured twice a
month. Part I, C. of said permit requires the
submission of the results of said measurements to be
submitted to DEM on a Monthly Monitoring Report Form.
G. By letter dated October 10, 1985, a Notice of
Noncompliance was sent to Ernest Klatt, Gem City Mine,
for failure to submit self -monitoring reports for 1985.
H. By letter dated January 10, 1986, a Notice of
Noncompliance.was sent to Ernest Klatt, Gem City Mine,
for the October 16, 1985, violations of the total
suspended solids effluent limitation of the permit and
for the modification of the treatment works, G.S.
143-215.1 (a)(3).
I. The costs of the investigation total $1,500.00
Based upon the above Findings of Fact, I make the following:
II. CONCLUSIONS OF LAW:
A. Ernest F. Klatt and Ernest A. Klatt, d/b/a Gem City
Mine, is a "person" within the meaning of G.S.
;k 143-215.6 pursuant to G.S. 143-213(14).
a
i

B.
C.
D.
-3-
The Facility described in Paragraph B above is a
"treatment works" within the meaning of G.S.
143-213(17).
NPDES Permit No. NC0058637
143-215.1.
Part I. A.(1) and C. are
requirements of said permit.
is required by G.S.
terms, conditions or
E. Ernest F. Klatt 'and Ernest A. Klatt, d/b/a Gem City
Mine, violated NPDES Permit No. NC0058637 to the manner
and extent as described in paragraph I. D. and E. above
on one (1) occasion when the effluent limitation for
Total Suspended Solids was exceeded.
F. Ernest F. Klatt and Ernest A. Klatt, d/b/a Gem City
Mine, violated NPDES Permit No. NC0058637 to the manner
and extent as described in paragraph I. F. above on
twenty (20) occasions when they failed to submit
monthly Monitoring Reports for the months of October
1984 through May 1986.
G. Ernest F. Klatt and Ernest A. Klatt, d/b/a Gem City
Mine, violated G.S. 143-215.1(a)(3) to the manner and
extent as described in paragraph I. C. above on one (1)
occasion when they altered, extended or changed the
construction or method of operation of its treatment
works without applying for or securing a permit for
said activity.
H. General Statute 143-215.6 provides that a civil penalty
of not more than ten thousand dollars 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 G.S. 143-215.1 or who is
required but fails to secure a permit required by G.S.
143-215.1.
I. General Statute 143-215.3(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 Environmental Management Commission or
violates any terms or conditions of any permit issued
pursuant to G.S. 143-215.1.
J. The Director, Division of Environmental Management,
pursuant to Regulation 15 NCAC 2J .0003, has the
authority to assess civil penalties.

f S
i
-4-
Based upon the above Findings
Law, I make the following:
III. DECISION•
of Fact and Conclusions of
Pursuant to G.S. 143-215.6 and 15 NCAC 2J .0006, in
determining the amount of the penalty, I have taken into
account the Findings of Fact and Conclusions of Law and
considered the degree and extent of harm caused by the
violation, and the cost of rectifying the damage.
Accordingly, Ernest F. Klatt and Ernest A. Klatt, d/b/a
Gem City Mine, shall be, and hereby are, assessed a civil
penalty of:
for violation of NPDES Permit No. NC0058637
on one (1) occasion by exceeding the effluent
limitation for Total Suspended Solids;
$ / ��•4Pd for violation of NPDES Permit No. NC0058637
on thirteen (13) occasions by failing to
submit Monthly Monitoring Reports from
October 1984 through October 1985;
$ 6 LV®,O0 for violation of NPDES Permit No. NC0058637
on three (3) occasions b_y-failing to submit
Monthly Monitoring Reports from November and
December 1985, and January 1986;
$ 16AP- 40 for violation of NPDES Permit No. NC0058637
on four (4) occasions by failing to submit
Monthly Monitoring Reports from February
through May 1986;
for violation of G.S. 143-215.1(a) (3 ) on one
(1) occasion by altering, extending, or
changing the construction or method of
operation of its treatment works; and
$lt500.00 for costs of the investigation.
The total penalty assessed is $ 415 .S®D . no

f
III. TRANSMITTAL:
-5-
The Office of Legal Affairs is directed to transmit
these Findings of Fact, Conclusions of Law and Decision to
Ernest F. Klatt and Ernest A. Klatt, d/b/a Gem City Mine, in
accordance with Regulation 15 NCAC 2J .0007.
(DateV R. Paur Wilms, Director
Division of Environmental Management

STATE OF NORTH CAKuLINA
COUNTY OF MACON
ERNEST F. KLATT AND ERNEST A. KLATT,
D/B/A GEM CITY MINE
Petitioner
VERSUS.
N. C. DEPARTMENT OF NATURAL RESOURCES
AND COMMUNITY.DEVELOPMENT, DIVISION
OF ENVIRONMENTAL MANAGEMENT
Respondent
IN THE OFFICE OF
ADMINISTRATIVE HEARINGS
89 NRC 0534
PREIIEAP.ING STATEMENTS
Pursuant to 26 NCAC 3 .0004, the following Prehearing Statement is
filed with the Office of Adminstrative Iearings and served to the
Respondent.
1. I'.e wish to resolve that the Respondent did not properly notify the
Petitioner or give adequate opportunity to offer defense before
ordering fines to be payed concerning their Civil suit against the
Petitioner. We wish to have these charges and fines disolved.
2. We wish to present the court with proof that allegations are not
correct concerning damages to the environment, misconceptions,gs to
where and when alledged violations occured are incorrect.
3. List of proposed witnesses; E. F. Klatt
Ernest A. Klatt
Clayman Dean Conner
4. Don't know.
5. The Petitioners request Macon Co. Courthouse for any hearings.
6. No idea._
7. Ernest A. Klatt Ernest F. Klatt
540 Olive hill Road P.O. Box 1477
Franklin, NC 28734 Boynton Beach, Fla. 33435
[phone] [phone]
Business
Ruby City Gems
44 East Main Street
Franklin, NC 28 734
[phone]
N.C. address
11 Patton Ave.
Franklin, NC 28734
[phone]

I
Page 2
8. If it is necessary for Ernest F. Klatt to appear it should be held
between May 1, 1989 and Oct. 31, 1989 as he is not a N.C. resident
and normally is not in the state any other time. Also he travels
around a lot and would need at least thirty(30) days notice before
any court hearings as he has other obligations from time to time.
9. Would wish the Respondent would consider droping the entire'matter
saving the courts and the people of the state of N.C. thousands of
dollars, but in the event that this is not possible, fully intend to
be completely cleared of any wrong doing and expect that all fines
will be cancelled.
This the �/, day of 0-1)N,5'- , 1989.
E. F. Klatt
Ernest A. Klatt

STATE OF "NORTH -CAROLING
FILED, OFFICE
OF
IN THE OFFICE OF
COUNTY OF MACON
A N 11,11 j . j AIR j N
G s
ADMINISTRATIVE HEARINGS
89 NRC 0534
e
ERNEST F. KLATT AND ERNEST
A. KLATT,
)
D/B/A GEM CITY MINE
Petitioner
)
)
VERSUS
)
ORDER FOR PREHEARING
N. C. DEPARTMENT OF NATURAL
RESOURCES
)
STATEMENTS
AND'COMMUNITY DEVELOPMENT, DIVISION
)
OF ENVIRONMENTAL MANAGEMENT
)
Respondent
)
In order to permit the prompt preparation of this case for
hearing,
IT IS HEREBY ORDERED, pursuant to 26 NCAC 3 .0004, that each
party file with the Office of Administrative Hearings and serve upon
the other parties a Prehearing Statement containing your present
Position with regard to the following:
1. The issues toibe resolved, and the statutes, rules, and legal
precedent involved;
2. A brief statement of the facts and reasons supporti
party's positron on each matter in ',dispute; ng the
3. A list of proposed witnesses;
4. Whether you wish to pursue discovery. If so, the length of time
required;
5. Requested location of hearing(s);
6. Estimated length of hearing;
7. If you do not have an -attorney, your home and business addresses
and telephone numbers;
8. The date by which you will be ready to -have a hearing in this
case; and
9. Other special matters.
This Prehearing Statement must be filed and served within 30
days of the date of this ORDER. —
This the 20 -day of U�le' 1989.
l
Beecher R. Gray
Administrative Law Judge

Ruby City Gems
IA East Alain Street
Franklin, NC 28734
\�1�
V' <D
jur4
�/ 9 at)
J. M. Ppyne
N.C. Department of Natural Resources.
& Community Development
Division of finvironmental'Aianagement
P.O. Box 370
Asheville, AIC 28802-0370

State of North Carolina
Department of Natural Resources and Community Development
Asheville Regional Office
James G. Martin, Governor
Mr. Ernest A. Klatt
Gem City Mine
44 East Main Street
Franklin, North Carolina 28734
Dear Mr. Klatt:
S. Thomas Rhodes, Secretary
DIVISION OF ENVIRONMENTAL MANAGEMENT
WATER QUALITY SECTION
October 17, 1986
Subject: Notice of Non -Compliance
15NCAC2B.0506
Reporting Requirements
NPDES Permit Number NCO058637
Gem City Mine
Macon County, North Carolina
Review of the monthly self -monitoring files for Gem City Mine,
Macon County, North Carolina, indicates that the monthly self -monitor-
ing report for August, 1986, has not been received.
Section 2B.0506 of Title 15 of the North Carolina Administrative --------
Code requires these monitoring reports be filed monthly no later than
thirty (30) days after the end of the reporting period for which the
report is made and that all required data be reported.
Please notify me -in writing by November 15, 1986, as to why this
report was not submitted.
Sincerely,
Forrest R. Westall
.Water Quality Regional Supervisor
FRW:WEA:1s
xc: Gil Wallace, EPA
Yvonne Bailey, Office of Legal Affairs
Interchange Building, 59 %Xloodfin Place, P.O. Box 370, Asheville, N.C. 28802-0370 ® Telephone [phone]
An Eaual Onnormniry Afirmntivt, .Action Fmnlnvrr

United States Environmental Protection_ Agency arm Approved
A - Washington, D. C. 20460 -
1� E PA NPDES Compliance Inspection Report OMBNo.2040-0003
e' Approval Expires 7-31-85
Section A: National Data System Coding
Transaction Code NPDES yr/mo/day Inspection Type Inspector Fac Type
1� �5l Ifi/Iclolo1S _1`1317111 1�ff161j l0l©17'117 1� 1 2�
Remarks
11111111111111111111111111111111111111111.IIIII1
ss
Reserved Facility Evaluation Rating BI CIA ------------------ Reserved -----------------
67 69 7LI j 7 1 u 72 /U✓ 73—ij 74 751 1 I 1 I 1 1130
Section B: Facility Data
Name and Location of Faciiity Inspected Entry Time aAM ❑ PM Permit Effective Date
Gem G.+y 1103cv l O'_f 8#—
�1V1g�n Cavn rj /%/C, Exit Time/Date Permit Expiration Date—
/ 3 v 7 &1 Se t
Name(s) of On -Site Representative(s) Title(s) Phone No(s)
Name, Address of Responsible Official Title
aFrnes-t KI-aft Owneyr
C' /�rn S Phone No. C ntacted
Fvan fins A C. � 973yf 910 f ,S� .���� L Yes ❑ No
Section C: Areas Evaluated During Inspection
IS = Satisfactory, M = Marginal, U = Unsatisfactory, N = Not Evaluated)
Permit Flow Measurement Pretreatment Operations & Maintenance
Records/Reports Laboratory Al Compliance Schedules Sludge Disposal
Facility Site Review Effluent/Receiving Waters Self -Monitoring Program Other:
Section D: Summary of Findings/Comments (Attach additional sheets if necessary)
7d7,S -fac.•�r`ty e$ an gon•Cone�:JncP beCadSP Svv��c�-tiara-e_Sd`vP.1.W
AP �naP S�>�/. pond.
! All Alonf � tc reM Mon,gyev,%%j rtl'oev7s A.Ndo Leer
SrJ�rr,irle� G[:tl,i pEn��t.GJ base b-an ?rdESgE'd Jn� e1r)drrr'd.1i% rjD,f•eeJ ed rlon
�n'td �e,r1GP f'i •iN e. �Qe@n �en�- _
Name(s) and Sipnature(s) of Inspector(s) Agency/Office/Telephone
Date
Signature of Reviewer Agency/Office Date
Regulatory Office Use Only
Action Taken Date CofnplianV Status
lT� Noncompliance
❑ Compliance

&/YIC ",
DIVISION OF ENVIRONMENTAL MANAGEMENT
WATER QUALITY SECTION
February 25, 1986
MEMORANDUM
TO: L. P. Benton, Jr., Deputy Director
Division of Environmental Management
THROUGH: Roy M. Davis, Regional Manager
Division of Environmental Management
Forrest R. Westa
Water Quality Re 1 Supervisor
FROM: William E. Anderson
Environmental Technician
SUBJECT: Recommendation for the Assessment of Civil Penalties
Gem City Mine
Macon County, North Carolina
Attached is an enforcement action report recommending the
assessment of civil penalties against Gem City Mine, a tourist
gem mine, for failure to submit monthly monitoring reports for
the 1985 season and for modifying the treatment system by breach-
ing the final settling pond containment dike without first
obtaining a permit from the Division. This modification resulted
in the violation of effluent limits contained in NPDES Permit.
Number N.C. 0058637.
If clarification is needed, please advise.
WEA:ls
Enclosure
xc: George Everett

CONTENTS
I. Enforcement Action Report
II. Enforcement Case Assessment Factors
III. Memorandum From Central Files
IV. Permit Number NCO058637
V. Laboratory Sheets With Chain Of Custody
VI. Notice Of Non -Compliance Dated January 10, 1986,
(Modification Of Treatment Works Without Permit)
VII. Notice Of Non -Compliance Dated October 10, 1985,
(Failure To Submit Monthly Monitoring Reports)
VIII. Reply to Notice of Non -Compliance Of October 10, 1985
VX. Photographic Slides With Index
X. Notification Of Enforcement Recommendation
XI. Civil Penalty Assessment Document
XII. Waiver Of Right To Administrative Hearing
XIII. Historical Data. Package

I.
ENFORCEMENT ACTION REPORT

ENFORCEMENT ACTION REPORT
Title: Gem City Mine: Treatment Facility Modification Without
Permit and Failure to Submit Monthly
Monitoring Reports
County: Macon
I. D. Number:
Date Submitted:
Regional Office: Asheville
Principal Investigators: William E. Anderson
Environmental Technician
Forrest R. Westall
Water Quality Regional Supervisor

Enforcement Action Report
Gem City Mine
Page 1
I. Introduction:
(a) Description of Violations
Modification of the wastewater treatment facilities
without first obtaining a permit from the Division of
Environmental Management in violation of NPDES Permit
Number NCO058637 and North Carolina General Statute
143.215.1: breaching the containment for the final set-
tling pond; also
Failure to submit monthly monitoring reports in violat-
ion of 15 NCAC 2B.0506.
(b) Date and Time of Day:
The breached pond was discovered on October 16, 1985,
at 11:30 a.m. Subsequent conversation with Ernest A.
Klatt indicated that the pond was breached in April,
1985. The exact date and time is unknown.
No monthly monitoring reports were received during 1985
(c) The exact location of violation:
The final settling pond was breached at Gem City Mine,
Highway 441, Macon County, North Carolina.
Monthly monitoring reports were not received anywhere
within the Division.
(d) Exact cause of violation:
The pond was breached in order to allow earth moving
equipment to move more easily in the vicinity, the
breach was not repaired until after it was pointed out
by the investigators approximately seven months later.
The specific reasons monitoring reports were not sent
remains unknown. Personnel at the mine were reminded
verbally of the need several times over the course of
the summer.

Enforcement Action Report
Gem City Mine
Page 3
III. Recommendation:
Civil penalties should be assessed against Gem City
Mine for breaching the final settling pond and for
failure to submit monthly monitoring reports.
,� :1 '
William E.
rson, Princ
Investigator
orrest iF Wes all, Regional Water Quality
Supervisor
Roy M. DaviJs., Regional Supervisor
Division of Environmental Management

Enforcement Action Report
Gem City Mine
Page 4
IV. Report:
A. The Gem City Mine is a tourist Gem Mine. A tourist Gem
Mine consists of a flume line in which containers with
screened bottoms and filled with "ore" (dirt and grav-
el) are dipped in order to separate the fine solids
from the coarser ones. The coarse solids are then
evaluated for gems. The fine solids are washed away
and become the contaminant associated with these waste-
water discharges.
The methods for treating this wastewater is exclusively
sedimentation. In practice, three separate ponds are
used. The first two are generally small and are used
to settle the heavier solids. These ponds require fre-
quent removal of the accumulated solids, usually by
using a backhoe. The third pond is relatively large
and is required for the removal of lighter particles in
order to comply with the NPDES Permit limits.
NPDES Permit Number NC0058637 was issued to Mr. Ernest
A. Klatt for Gem City Mine effective October 1, 1984.
The Permit expires September 30, 1989. This Permit al-
lows Gem City Mine "to continue to discharge from in-
organic solids settling ponds located.on N. C. Highway
441 in Macon County into an unnamed tributary to Rabbit
Creek which is classified class C-Trout waters". The
required monitoring is: effluent flow, settable matter
TSS, and pH at a frequency of twice per month,
turbidity samples are required upstream and downstream
twice per month.
On October 16, 1985, W. E. Anderson and Forrest R.
Westall of the Asheville Regional Office discovered
that the inorganic settling pond serving the Gem City
Mine, NPDES Permit Number NC0058637, had been breached.
Discussions with the owner revealed that the pond had
been breached in April so that the ground would not be
too soggy for earth moving equipment to work in the
area. The pond was breached and drained with the full
knowledge and consent of the owners. Operation of the
Ruby Mine without the treatment pond continued through
October, 1985.
Samples taken from the discharge at the breach in-
dicated that at 11:40 a.m. on October 16, 1985, the
total suspended solids were 190 mg/1 and at 12:40 p.m.

Enforcement Action Report
Gem City Mine
Page 6
B. List of witnesses
Forrest R. Westall
William E. Anderson
C. Evidence statement:
The breach in the settling pond was observed by the
witnesses on October 16, 1985. The duration of the
violation was determined through conversation with
Ernest A. Klatt on October 16, 1985. Sample results
sheets and photographic slides are supplied with this
report. The evidence which supports the failure to
submit monthly monitoring reports is conspicuous by its
absence. The reply to the Notice of Non -Compliance
does not mention the failure to report.
D. Legal Statement:
The total suspended solids from this discharge viol-
ated NPDES Permit Number NC0058637 effluent re-
quirements. Modifying the treatment facility by breach
ing the'pond without first obtaining a permit violated
Parts II.A.1. and II.A.3. of the Permit. Failure to
notify the Division of non-compliance due to the mod-
ification of the treatment system violated Part II.A.-2.
of the Permit. Changing the construction and method of
operation without first obtaining a permit from the
Division violated North Carolina General Statute
143-215.1(3). Failure to submit monthly monitoring
reports is a violation of 15 NCAC 2B. 0506 which re-
quires submission of monthly monitoring reports within
30 days of the reporting period.
E. Past violations:
Notices of non -compliances were sent to Mr. Ernest F.
Klatt on December 22, 1983 and January 17, 1984, for
failure to apply for a permit.
F. Actions taken by the regional staff to remedy or
prevent violation:

Enforcement Action Report
Gem City Mine
Page 7
After discussing the violation with Mr. Klatt on
October 16, 1985, the breach in the settling pond was
repaired within two days.
Discussion of the monthly monitoring report
requirements appears to have fallen of deaf ears.
G. Damage to property, environmental damage:
There was no apparent damage to public or private
property. Environmental damage to the trout habitat
in Rabbit Creek obviously occurred but cannot be
quantified.
H. Corrective action/prevention of recurrence:
Mr. Klatt should be made aware of his obligation to
comply with the laws and regulations of the State of
North Carolina. Assessment of civil penalties should
accomplish this.
I.&J. Exact legal name:
Permit Number NC0058637 is issued to
Mr. Ernest A. Klatt
Gem City Mine
44 East Main Street
Franklin, North Carolina 28734
K. There is no evidence that the Gem City Mine is owned
by a corporation.
L.&M. N/A
N. Water Body Information:
The wastewater discharge from Gem City Mine flows into
an unnamed tributary to Rabbit Creek, Class "C-Trout".
The U.T. flows through the final settling pond. The
entire length of the U.T. from Rabbit Creek upstream to
Gem City Mine is on property belonging to the Klatt
Family or on the right of way of U. S. Highway 441.

Enforcement Action Report
Gem City Mine
Page 8
O. Cost incurred by the Division.
Based on staff time, travel costs, report preparation,
and sample analyses the estimated cost of this
investigation to the Division is $1,500.

II.
ENFORCEMENT CASE ASSESSMENT FACTORS

n
DIVISION OF ENVIRONMENTAL MANAGEMENT
ENFORCEMENT CASE ASSESSMENT FACTORS
Violator: Gem City Mine
Identification Number:
Regional Office: Asheville
1. Degree and extent of harm and r
violation(s):
of harm caused by t
The harm to trout habitat in Rabbit Creek due to sedimenta-
tion from this discharge cannot be quantified. It seems
reasonable that some damage did occur.
Failure to submit monthly monitoring reports does not
directly cause harm or risk but allows violations to go
undetected.
2. Number of violations:
One violation of facility modification without Permit.
Seven violations of failure to submit monthly monitoring
reports.
3. Duration of violation(s):
These violations occurred for seven months, April through
October,. 1985.
4. Degree and extent of violations(s):
The violations were absolute.
5. Cause of violation(s) (Intentional, Negl
Otherwise):
These violations could be considered intentional or grossly
negligent. The pond was breached intentionally but the
failure to repair it could be considered negligent.

DEM Enforcement Case Assessment Factors
I. D. Number
Failure to submit monthly monitoring reports could be either
intentional, or negligent. There was nothing in the reply
to the notice of non-compliance to indicate either.
6. Economic benefit gained by violator by noncompliance:
Sampling costs for this discharge would be about $35.00 per
month times seven is $245.00.
7. Type of violator and general nature of business (i.e.
individual vs. large corporation):
The Gem City Mine is one of several businesses owned by the
Klatt Family others include the Ruby City Gem Shop
(advertised as the largest and finest Gem Shop in the south-
east U.S.A.) and the Gem City KOA Campground.
8. Violator's history of compliance or noncompliance:
The Klatts were issued two notices of non-compliance for
failure to renew the permit for Gem City Mine.
9. Violator's degree of cooperation (including efforts to
prevent or restore) or recalcitrance;
The Klatts are typically extremely recalcitrant, as
evidenced by the enclosures relating to permit renewal;
however, the pond breach was repaired within two days after
discussing the situation with Ernest A. Klatt, and Ernest F.
Klatt. The breach in the pond was; however, allowed to
remain through the entire operating season in 1985 except
for the last two weeks in October.
10. Cost of detecting violation, defi
ing enforcement action:
its extent, and bring -
As noted on page 8, the estimated cost to the Division is
$1,500.

DEM Enforcement Case Assessment Factors
I. D. Number
11. Mitigating circumstances, such as noncompliance attributable
to Government or factors beyond violator's control:
There were no mitigating circumstances, the replay to the
notice of non-compliance did not offer any reason for the
violations.
Investigator
Regional Supervisor
Date

MEMORANDUM FROM CENTRAL FILES

IV.
PERMIT NUMBER NCO058637

w
LABORATORY SHEETS, CHAIN OF CUSTODY

VI.
JANUARY 10, 1986, NOTICE OF NON-COMPLIANCE

SONVIZdWOO-NON JO HOIZON 'S86T 'OT UHSOZOO OZ 2�ZdMd
'IIIA

IX.
PHOTOGRAPHIC SLIDES WITH INDEX

PHOTOGRAPHIC SLIDES i
i
i
I
Photographic Slide Number 1: Is a view of the Gem City Mine
Flume line.
Photographic Slide Number 2: Is a view of the first settling
pond at Gem City Mine. The pond
is filled with solids sufficiently
to reduce its effectiveness to
near zero.
Photographic Slide Number 3: Is a view of the second settling
pond at Gem City Mine. It is also
filled with solids reducing its
effectiveness to near zero.
Photographic Slide Number 4: Is a view of the Gem City Mine
flume line. The settling pond is
in the left foreground, the first
settling pond is to the right on
the other side of the pile of
dirt.
Photographic Slide Number 5: Is a view of the breach of the
final settling pond looking out-
ward. Rabbit Creek is about 500'
to the left. Note muddy water
flowing under the vegetation.
Photographic Slide Number 6: Is a view of wherb the final set-
tling pond would be if the
containment were not breached.
Photographic Slide Number 7: Is a view toward the inside of the
final settling pond taken from the
breach.
Photographic Slide Number 8: Is Rabbit Creek just upstream from
the confluence with the unnamed
tributary into which Gem City Mine
discharges.
Photographic Slide Number 9: Is a view.of the confluence of
Rabbit Creek and the unnamed
tributary into which Gem City Mine
discharges. The U.T. flows
through the metal culvert.
Photographic Slide Number 10: Is another view of the same
location as slide number nine.
Note relative magnitude of stream
flows.

Photographic Slides
Page 2
Photographic Slide Number 11: Is yet another view of the same
location as slide 9 and 10.
Photographic Slide Number 12: Is a view of Rabbit Creek just
downstream from the confluence
with the U.T. into which the dis-
charge from Gem City Mine flows.
Photographic Slide Number 13: Is a view downstream from the con-
fluence of Rabbit Creek and the
unnamed tributary into which the
discharge, from Gem City Mine
flows. This is at a point where
thorough mixing has occurred.
Photographic Slide Number 14: Is a view of Gem City Mine taken
November 12, 1985.
Photographic Slide Number 15: Is a view of the repaired area of
the final settling pond serving
Gem City Mine.
Photographic Slide Number 16: Is a different view of the
repaired area of the final
settling pond serving Gem City
Mine.
Photographic Slide Number 17: Is a view of the final settling
pond serving Gem City Mine after
repair of the breach.
Photographic Slide Number 18: Is another view as the final set-
tling pond serving Gem City Mine
after repair of the breach.
Photographic Slide Number 19: Is a view of the normal over flow
from the final settling pond. It
should be noted that the Gem City
Mine was not in operation when
slides 14 through 19 were taken.

X.
NOTIFICATION OF ENFORCEMENT RECOMMENDATIONS

State of North Carolina
Department of 'Natural Resources and Community Development
Asheville Regional Office
James G. Martin, Governor S. Thomas Rhodes, Secretary
DIVISION OF ENVIRONMENTAL MANAGEMENT
February 10, 1986
Mr. Ernest A. Klatt
Gem City Mine
44 East Main Street
Franklin, North Carolina 28734
Subject: Notification of Enforcement
Recommendation
Violation of NPDES Permit
Number NC0058637, North
Carolina General Statute
143-215.1, and Title 15 of
the North Carolina Administ-
rative Code Section 2B.0506
Gem City Mine
Macon County, North Carolina
Dear Mr. Klatt:
This letter is to advise you that enforcement recom-
mendations have been prepared -and are being transmitted to the
Director, Division of Environmental Management for the subject
violations. These violations were incurred by failure of Gem
City Mine to submit monthly monitoring reports for April, May,
June, July, August, September, and October, 1985, and for modify-
ing the wastewater treatment facility which serves Gem City Mine
without first obtaining a permit by breaching the containment of
the final settling pond. You will be notified of the Directors
Decision in this matter following procedural review.
RMD:ls
Sincerely,
IoA
Roy M. avis, Regional Supervisor
Division of Environmental Management
Interchange Building, 59 Woodfin Place, P.O. Box 370; Asheville, N.C. 28802-0370 • Telephone [phone]
An Equal Opportunity Affirmative Action Employer

XI.
CIVIL PENALTY ASSESSMENT DOCUMENT

State of North Carolina
Department of Natural Resources and Community Development
Division of Environmental Management
512 North Salisbury Street • Raleigh, North Carolina 27611
James G. Martin, Governor
S. Thomas Rhodes, Secretary
CERTIFIED MAIL
RETURN RECEIPT REQUESTED
Mr. Ernest A. Klatt
Gem City Mine
44 East Main Street
Franklin, North Carolina 28734
Dear Mr. Klatt:
R. Paul Wilms
Director
RE: Civil Penalty Assessment for Violations of
State NPDES Permit Number NC0058637,
N.C.G.S. 143-215.1 and 15 NCAC 2B.0506
Macon County, North Carolina W 84-
This letter transmits notice of a civil penalty assessed
against Gem City Mine in the amount of -
Attached is a copy of the assessment document explaining
this penalty. This action was taken by the Director, Division of
Environmental Management, under the authority vested in him by
N.CGS 143-215.6. Any continuing violations(s) may be the subject
of a new enforcement action, including an additional penalty.
Within 30 days.of receipt of this notice, you must:
(1) Submit payment of the penalty; or
(2) Submit a written request for remission or mitigation,
.including a detailed justification for such request; or
(3) Submit a written request for an administrative hearing,
including a statement of the factual or legal issues in
dispute.
Pollution Prevention Pays
P.O. Boot 27687, Raleigh, North Carolina 27611-7687 Telephone [phone]
An Eaual ODoortuniry Affirmative.Action Emolom

Mr. Ernest A. Klatt
Page 2
Your response should be directed to my attention at the
following address:
Division of Environmental Management
N. D. Department of Natural Resources and
Community Development
Post Office Box 27687
Raleigh, North Carolina 27611
Additional information about your options is as
follows:
(1) Payment of the penalty will not foreclose further
enforcement action against any continuing or new
violations(s).
(2) A request for remission or mitigation is limited
to consideration of the reasonableness of the
amount of the penalty and is not the proper
procedure for questioning the validity of any
of the factual or legal issues,.in the attached
assessment document. Because a remission or
mitigation request forecloses your option of an
administrative hearing, such a request must be
-accompanied by both a waiver of your right to an
administrative hearing and a stipulation that
there are no -factual or legal issues in dispute,
other than the reasonableness of the amount of the
penalty. If you request remission or mitigation,
you must execute and return the attached form to
this office before your request will be granted.
(3) If you wish to contest any statements in the
attached assessment document, you must request an
administrative hearing. A request for an
administrative hearing precludes a request for
remission of mitigation and must be accompanied
by a detailed statement of the factual and legal
issues that are in dispute. Relief from an
adverse determination after a hearing is by appeal
to the Superior Court.
Failure to make payment or to exercise one of your options
will result in this matter being referred to the Attorney General
with a request to initiate a civil action to collect the penalty.

Mr. Ernest A. Klatt
Page 3
If you have any questions concerning this matter, please do
not hesitate to contact me.
Sincerely,
R. Paul Wilms
Attachments

XII.
WAIVER OF RIGHT TO ADMINISTRATIVE HEARING AND
STIPULATION OF FACTS

U
NORTH CAROLINA
MACON COUNTY
IN THE MATTER OF ASSESS-)
MENT OF CIVIL PENALTY )
AGAINST GEM CITY MINE )
NORTH CAROLINA
ENVIRONMENTAL MANAGEMENT COMMISSION
WAIVER OF RIGHT TO AN ADMINISTRATIVE
HEARING AND STIPULATION OF FACTS
Having been assessed a civil penalty of $ for viola-
tions of as set forth in the assessment docu-
ment of the Director, Division of Environmental Management, of
1986, the undersigned, desiring to seek remission
of civil penalty, does hereby waive its right to an administra-
tive hearing in the above -stated matter and does stipulate that
the facts are as alleged in the assessment document.
This the
ADDRESS
TELEPHONE
day of
by
1986.

XIII.
HISTORCIAL DATA PACKAGE

II.
ENFORCEMENT CASE ASSESSMENT FACTORS

0
DIVISION OF ENVIRONMENTAL MANAGEMENT
ENFORCEMENT CASE ASSESSMENT FACTORS
Violator: Gem City Mine
Identification Number:
Regional Office: Asheville
1. Degree and extent of harm and risk of harm caused by the
violation(s)•
The harm to trout habitat in Rabbit Creek due to sedimenta-
tion from this discharge cannot be quantified. It seems
reasonable that some damage did occur.
Failure to submit monthly monitoring reports does not
directly cause harm or risk but allows violations to go
undetected.
2. Number of violations:
One violation of facility modification without Permit.
Seven violations of failure to submit monthly monitoring
reports.
3. Duration of violation.(s):
These violations occurred for seven months, April through
October, 1985.
4. Degree and extent of violations(s):
The violations were absolute.
5. - Cause of violation(s)� (Intentional, Negligence, or
e).
These violations could be considered intentional or grossly
negligent. The pond was breached intentionally but the
failure to repair it could be considered negligent.

DEM Enforcement Case Assessment Factors
I. D. Number
Failure to submit monthly monitoring reports could be either
intentional, or negligent. There was nothing in the reply
to the notice of non-compliance to indicate either.
6. Economic benefit gained by violator by noncompliance:
Sampling costs for this discharge would be about $35.00 per
month times seven is $245.00.
7. Tvpe of vi
VS.
al nature of bus
ration):
i.e.
The Gem City Mine is one of several businesses owned by the
Klatt Family others include the Ruby City Gem Shop
(advertised as the largest and finest Gem Shop in the south-
east U.S.A.) and the Gem City KOA Campground.
8. Violator's history of compliance or noncompliance:
The Klatts were issued two notices of non-compliance for
failure to renew the permit for Gem City Mine.
9. Violator's degree of cooperation (including efforts to
prevent or restore) or recalcitrance;
The Klatts are typically extremely recalcitrant, as
evidenced by the enclosures relating to permit renewal;
however, the pond breach was repaired within two days after
discussing the situation with Ernest A. Klatt, and Ernest F.
Klatt. The breach in the pond was; however, allowed to
remain through the entire operating season in 1985 except
for the last two weeks in October..
10. Cost of detecting violation, defining its extent, and bring -
cement action:
As noted on page 8, the estimated cost to the Division is
$1,500.

DEM Enforcement Case Assessment Factors
I. D. Number
11.
Mitigating circumstances
to Government or factors
such as noncompliance attributable
eyond violator's control:
There were no mitigating circumstances, the replay to the
notice of non-compliance did not offer any reason for the
violations.
Investigator
Regional Supervisor
Date

1 'v
DIVISION OF ENVIRONMENTAL MANAGEMENT
WATER QUALITY SECTION
February 25, 1986
MEMORANDUM
TO: L. P. Benton, Jr., Deputy Director
Division of Environmental Management
THROUGH: Roy M. Davis, Regional Manager
Division of Environmental Management
Forrest R. Westa
Water Quality Re 1 Supervisor
FROM: William E. Andersonl'
Environmental Technician
SUBJECT: Recommendation for the Assessment of Civil Penalties
Gem City Mine
Macon County, North Carolina
Attached is an enforcement action report recommending the
assessment of civil penalties against Gem City Mine, a tourist
gem mine, for failure to submit monthly monitoring reports for
the 1985 season and for modifying the treatment system by breach-
ing the final settling pond containment dike without first
obtaining a permit from the Division. This modification resulted
in the violation of effluent limits contained in NPDES Permit
Number N.C. 0058637.
If clarification is needed, please advise.
WEA:ls
Enclosure
xc: George Everett

ENFORCEMENT ACTION REPORT

Enforcement Action Report
Gem City Mine
Page 1
I. Introduction:
(a) Description of Violations
Modification of the wastewater treatment facilities
without first obtaining a permit from the Division of
Environmental Management in violation of NPDES Permit
Number NCO058637 and North Carolina General Statute
143.215.1: breaching the containment for the final set-
tling pond; also _
Failure to submit monthly monitoring reports in violat-
ion of 15 NCAC 2B.0506.
(b) Date and Time of Day:
The breached pond was discovered on October 16, 1985,
at 11:30 a.m. Subsequent conversation with Ernest A.
Klatt indicated that the pond was breached in April,
1985. The exact date and time is unknown.
No monthly monitoring reports were received during 1985
(c) The exact location of violation:
The final settling pond was breached at Gem City Mine,
Highway 441, Macon County, North Carolina.
Monthly monitoring reports were not received anywhere
within the Division.
(d) Exact cause of violation:
The pond was breached in order to allow earth moving
equipment to move more easily in the vicinity, the
breach was not repaired until after it was pointed out
by the investigators approximately seven months later.
The specific reasons monitoring reports were not sent
remains unknown. Personnel at the mine were reminded
verbally of the need several times over the course of
the summer.

Enforcement Action Report
Gem City Mine
Page 3
III. Recommendation:
Civil penalties should be assessed against Gem City
Mine for breaching the final settling pond and for
failure to submit monthly monitoring reports.
Will
iam
E. Anderson,
Principal Investigator
orrest . Wes all, Regional Water Quality
Supervisor
P -�_
Roy M. Davits:, Regional Supervisor
Division of Environmental Management

ENFORCEMENT ACTION REPORT
Title: Gem City Mine: Treatment Facility Modification Without
Permit and Failure to Submit Monthly
Monitoring Reports
County: Macon
I. D. Number:
Date Submitted:
Regional Office: Asheville
Principal Investigators: William E. Anderson
Environmental Technician
Forrest R. Westall
Water Quality Regional Supervisor

Enforcement Action Report
Gem City Mine
Page 4
IV. Report:
A. The Gem City Mine is a tourist Gem Mine. A tourist Gem
Mine consists of a flume line in which containers with
screened bottoms and filled with "ore" (dirt and grav-
el) are dipped in order to separate the fine solids
from the coarser ones. The coarse solids are then
evaluated for gems. The fine solids are washed away
and become the contaminant associated with these waste-
water discharges.
The methods for treating this wastewater is exclusively
sedimentation. .In practice, three separate ponds are
used. The first two are generally small and are used
to*settle the heavier solids. These ponds require fre-
quent removal of the accumulated solids, usually by
using a backhoe. The third pond is relatively large
and is required for the removal of lighter particles in
order to comply with the NPDES Permit limits.
NPDES Permit Number NC0058637 was issued to Mr. Ernest
A. Klatt for Gem City Mine effective October 1, 1984.
The Permit expires September 30, 1989. This Permit al-
lows Gem City Mine "to continue to discharge from in-
organic solids settling ponds located on N. C. Highway
441 in Macon County into an unnamed tributary to Rabbit
Creek which is classified class C-Trout waters". The
required monitoring is: effluent flow, settable matter
TSS, and pH at a frequency of twice per month,
turbidity samples are required upstream and downstream
twice per month.
On October 16, 1985, W. E. Anderson and Forrest R.
Westall of the Asheville Regional Office discovered
that the inorganic settling pond serving the Gem City
Mine, NPDES Permit Number NC0058637, had been breached.
Discussions with the owner revealed that the pond had
been breached in April so that the ground would not be
too soggy for earth moving equipment to work in the
area. The pond was breached and drained with the full
knowledge and consent of the owners. Operation of the
Ruby Mine without the treatment pond continued through
October, 1985.
Samples taken from the discharge at the breach in-
dicated that at 11:40 a.m. on October 16, 1985, the
total suspended solids were 190 mg/1 and at 12:40 p.m.

Enforcement Action Report
Gem.City Mine
Page 6
B. Lisa of witnesses
Forrest R. Westall
William E. Anderson
C. Evidence statement:
The breach in the settling pond was observed by the
witnesses on October 16, 1985. The duration of the
violation was determined through conversation with
Ernest A. Klatt on October 16, 1985. Sample results
sheets and photographic slides are supplied with this
report. The evidence which supports the failure to
submit monthly monitoring reports is conspicuous by its
absence. The reply to the Notice of Non -Compliance
does not mention the failure to report.
D. Legal Statement:
The total suspended solids from this discharge viol-
ated NPDES Permit Number NC0058637 effluent re-
quirements. Modifying the treatment facility by breach
ing the pond without first obtaining a permit violated
Parts II.A.1. and II.A.3. of the Permit. Failure to
notify the Division of non-compliance due to the mod-
ification of the treatment system violated Part II.A.2.
of the Permit. Changing the construction and method of
operation without first obtaining a permit from the.
Division violated North Carolina General Statute
143-215.1(3). Failure to submit monthly monitoring
reports is a violation of 15 NCAC 2B. 0506 which re-
quires submission of monthly monitoring reports within
30 days of the reporting period.
E. Past violations:
Notices of non -compliances were sent to Mr. Ernest F.
Klatt on December 22, 1983 and January 17, 1984, for
failure to apply for a permit.
F. Actions taken by the regional staff to remedy or
prevent violation:

Enforcement Action Report
Gem City Mine
Page 7
After discussing the violation with Mr. Klatt on
October 16, 1985, the breach in the settling pond was
repaired within two days.
i
Discussion of the monthly monitoring report
requirements appears to have fallen of deaf! ears.
G. Damage to property, environmental damage:
There was no apparent damage to public or private
property. Environmental damage to the trout habitat
in Rabbit Creek obviously occurred but cannot be
quantified.
i
H. Corrective action/prevention of recurrences
Mr. Klatt should be made aware of his obligation to
comply with the laws and regulations of the State of
North Carolina. Assessment of civil penalties should
accomplish this.
I.&J. Exact legal name:
Permit Number NC0058637 is issued to
Mr. Ernest A. Klatt
Gem City Mine
44 East Main Street
Franklin, North Carolina 28734
K. There is no evidence that the Gem City Mine is owned
by a corporation.
i
i
L.&M. N/A j
N. Water Body Information:
The wastewater discharge from Gem City Mine flows into
an unnamed tributary to Rabbit Creek, Class "C-Trout".
The U.T. flows through the final settling pond. The
entire length of the U.T. from Rabbit Creek upstream to
Gem City Mine is on property belonging to the Klatt
Family or on the right of way of U. S. Highway 441.
I

Enforcement Action Report
Gem City Mine
Page 8
O. Cost incurred by the Division.
Based on staff time, travel costs, report preparation,
and sample analyses the estimated cost of this
investigation to the Division is $1,500.

CONTENTS
i
�I. Enforcement Action Report
II. Enforcement Case Assessment Factors
III. Memorandum From Central Files
IV. Permit Number NC0058637
V. Laboratory Sheets With Chain Of Custody
VI. Notice.Of Non -Compliance Dated January 10, 1986,
(Modification Of Treatment Works Without -Permit);
VII. Notice Of Non -Compliance Dated October 10, 1985,;
(Failure To Submit Monthly Monitoring Reports)
VIII. Reply to Notice of Non -Compliance Of October 10; 1985
VX. Photographic Slides With Index
X. Notification Of Enforcement Recommendation
XI. Civil Penalty Assessment Document
XII. Waiver Of Right To Administrative Hearing
XIII. Historical Data Package

MEMORANDUM FROM CENTRAL FILES

State of North Carolina
Department of Natural Resources and Community Development
Division of Environmental Management
512 North Salisbury Street 0 Raleigh, North Carolina 27611
James G. Martin, Governor R. Paul Wilms
S. Thomas Rhodes, Secretary January 23, 1986
Director
MEMORANDUM
TO: Bill Anderson
FROM: Janet Rooks 'go'�
SUBJECT: Self Monitoring Report
Central Files has not received any self monitoring
reports for Gem City Mines (NPDES permit #f58637) as of
January 23, 1986.
`� ECEIVED
:fir- _r Qualls-,, '';vision
JAN 27 1986
western Regional Office,'
Pollution Prevention Pays Lsheville, North Carolina
P.O. Box 27687, Raleigh, North Carolina 27611-7687 Telephone [phone]
An Equal Opportunity Affirmative Action Employer

IV.
PERMIT NUMBER NCO058637

ENVIRONMENTAL
�..a.� North Carolina Department of Natural MANAGEMENT
Robert F. Helms
Resources &Community Development Director
James B. Hunt, Jr., Governor James A. Summers, Secretary �CTrJ�/9 3-7015
y October 1, 1984 Division
Mr. Ernest A. Klatt OCT 3 q84
Gem City Mine✓esrern
44 East Main Street 7 ice
Franklin, NC 28734 �lshevt!!e' North CarG!ina
Subject: Permit No. NCO058637
Gem City Mine
Macon County
Dear Mr. Klatt:
In accordance with your application for discharge permit received
February 23, 1984, we are forwarding herewith the subject State - NPDES
permit. This permit is issued pursuant to the requirements of North
Carolina General Statute 143-215.1 and the Memorandum of Agreement be-
tween North Carolina and the U. S. Environmental Protection Agency dated
December 6, 1983.
If any parts, requirements, or limitations contained in this permit
are unacceptable to you, you have the right to an adjudicatory hearing
before a hearing officer upon written demand to the Director within 30
days following receipt of this permit, identifying the specific issues
to be contended. Unless such demand is made, this permit shall be final
and binding.
Please take notice that this permit is not transferable. Part II, B.2.
addresses the requirements to be followed in case of change in ownership or
control of this discharge.
This permit does not affect the legal requirement to obtain other permits
which may be required by the Division of Environmental Management. If you
have any questions concerning this permit, please contact Ms. Helen S. Fowler,
at telephone number 919/733-5083.
Sincerely yours,
(igiRai Signed a,,
Robert F. Helms
cc: Mr. Jim Patrick, EPA
iAsheville-Regional Supervisor
P.A. Box 27687 Raleigh, N.C. 27611-7687
An Equal Opportunity Affirmative Action Employer

R-ECETVED
Water Quailty D;vision
OCT 3 1984
Western ('.;=,:e
Asheville, Nort3, Ca ,;;;na
STATE OF NORTH CAROLINA
DEPARTMENT OF NATURAL RESOURCES & COMMUNITY DEVELgPMENT
DIVISION OF ENVIRONMENTAL MANAGEMENT I
P E R M I T
To Discharge Wastewater Under the NATIONAL
POLLUTANT DISCHARGE ELIMINATION SYSTEM
In compliance with the provisions of North Carolina General Statute 143-215.1,
other lawful standards and regulations promulgated and adopted by the North Carolina
Environmental Management Commission, and the Federal Water Pollution Control Act, as
amended,
Gem City Mine
is hereby authorized to discharge wastewater from a facility located at
Gem City Mine
US Highway 23/441
Macon County
to receiving waters designated an unnamed tributary to Rabbit Creek in the Little
Tennessee River Basin
in accordance with effluent limitations, monitoring requirements, and other
conditions set forth in Parts I, II, and III hereof.
This permit shall become effective October 1, 1984
This permit and the authorization to discharge shall expire at midnight
on September 30, 1989
Signed this day of October 1, 1984 -Original Signed BY
FORREST R. WESTALL
FOR
xobert F. Helms, Director
Division of Environmental Management
By Authority of the Environmental
Management Commission
M1 & Ii

SUPPLEMENT TO PERMIT COVER SHEET
Gem City Mine
is hereby authorzied to:
Permit No. NC0058637
I. Continue to discharge from inorganic solids settling ponds
located on NC Highway 441 in Macon County into an unnamed
tributary to Rabbit Creek which is classified Class "C-Trout"
waters.
4#

. A. (1), EFFLUENT LIMITATIONS AND MONITORING REQUIREMENTS Final
During the period beginning on the effective
date of the Permit
and lasting until expiration,
(s). 001.
the
permittee is authorized to discharge
be limited and
from outfall,(s)
monitored by the
serial number
permittee
as specified below:
�.. ,.,..
Such discharges shall
Discharge
Effluent Characteristics 9
Limitations
.
Monitoring
Requirements
Kg/day (lbs/day)
Other Units
(Specify)
Measurement
Sample
Sample
Daily Avg. Daily Max.
Daily Avg.
Daily Max.
Frequency
Type
Location
2/Month Instantaneous
E
glow
/Settleable%Matter
0.1 ml/I
0.2 ml/I
2/Month
Grab
E
'Total Suspended Solids
50 mg/I
75 mg/I
2/Month
Grab
E
Turbidity, The turbidity in the receiving
2/Month
Grab
U,D
water due to the discharge shall
not exceed 10 NTU.
*E - Effluent, U - Upstream, D - Downstream
c1 M. a
O A
ci
C+
00
M z
o
J ,
The pH shall not be less than 6.0 standard units nor greater than 8.5 standard units
and shall be monitored 2/Month by grab sample at the effluent.
There shall be no discharge of floating solids or visible foam in other than trace amounts.

Part I
B. SCHEDULE OF COMPLIANCE
0
Permit No. NC
1. The permittee shall achieve compliance with the effluent limitations
specified for discharges in accordance with the following schedule:
2-. No later than 14.calendar days following a date identified in the above
schedule of compliance, the permittee shall submit either a report of
progress or, in the case of specific actions being required by identified
dates, a written notice of compliance or noncompliance. In the latter
case, the notice shall include the cause of noncompliance, any remedial
actions taken, and the probability of meeting the next scheduled requirement.
lit A 0. T A

PART I
Permit No. NC
Act used herein means the Federal Water Pollution Control Act, As amended.
DEM used herein means the Division of Environmental Management of the
Department of Natural ite'sourcos and COIT11nunity lle-velupinent
"EMU used herein means the North Carolina Environmental Management
Commission.
C. MONITORING AND REPORTING
1. Representative Sampling
Samples and measurements taken as required herein shall be representative
of the volume and nature of the monitored discharge.
2. Reporting
Monitoring results obtained during the previous month(s) shall be
summarized for each month and reported on a -Monthly Monitoring Report
Form (DEM No. MR 1.0, 1.1, and 1.4) postmarked no later than the 45th
day following the completed reporting period. The first report is due on
. The DEM may require reporting of additional monitoring
results by written notification. Signed copies of these,'and all other
reports required herein, shall be submitted to the following address:
Division of Environmental Management
Water Quality Section
Post Office Box 27687
Raleigh, North Carolina 27611
3. Definitions
a. The "daily average" discharge means the total discharge by weight
during a calendar month divided by the number of days in the month
that the production or commercial facility was operating. Where less
than.daily sampling is required by this permit, the daily average
discharge shall be determined by the summation of all the measured
daily discharges by weight divided by the number of days sampled
during the calendar month when the measurements were made.
b. The "daily maximum" discharge means the total discharge by weight
during any calendar day.
4. Test Procedures
Test procedures for the analysis of pollutants shall conform to The EMC
regulations published pursuant to N. C. G. S. 143-215.63 et seq.. The
Water and Air Quality Reporting Act, Section 304(g), 13 USC 1314, of the
Federal Water. Pollution Control Act, As Amended, and Regulation 40 CFR 136.
5. Recording Results
For each measurement or sample taken pursuant to the requirements of
this permit, the permittee shall record the following information:
15

PART I
Permit Ho. NC
a. The exact place, date, and time of sampling;
b. The dates the analyses were performed;
c. The person(s) who performed the analyses;
d. The analytical techniques or methods used; and
e. The results of all required analyses.
6. Additional Monitoring by Permittee
If the permittee monitors any pollutant at the location(s) designated
herein more frequently than required by this permit, using approved
analytical methods as specified above, the results of such monitoring
shall be included in the calculation and reporting of the values required
in the Monthly Monitoring Report Form (DEM MR 1.0, 1.1, 1.4)
Such increased monitoring frequency shall also be indicated. The DEM
may require more frequent monitoring or the monitoring of other pollu-
tants not required in this permit by written notification.
7. Records Retention
All records and information resulting .from the monitoring activities
required by this permit including all records of analyses performed and
calibration and maintenance of instrumentation and recordings from
continuous monitoring instrumentation shall be retained by the permittee
for a minimum of three (3) years, or longer if requested by the State
Division of Environmental Management or the Regional Administrator of
the Environmental Protection Agency.
I 6

PART 11
Permit No. NC
A. MANAGEMENT REQUIREMENTS
1. Change in Discharge
All discharges authorized herein shall be consistent with the terms and
conditions of this permit. The discharge of any pollutant identified
in this permit more frequently than or at a level in excess of that
authorized shall constitute a violation of the permit. Any anticipated
facility expansions, production increases, or process modifications which
will result in new, different, or increased discharges of pollutants must
be reported by submission of a new NPDES application or, if such changes
will not violate the effluent limitations specified in this permit, by
notice to the DEM of such changes. Following such notice, the permit
may be modified to specify and limit any pollutants not previously limited.
2. Non compliance Notification
If, for any reason, the permittee does not comply with or will be unable
to comply with any effluent limitation specified in this permit, the per-
mittee shall provide the Division of Environmental Management with the
following information, in writing, within five (5) days of becoming aware
of such condition:
a. A description of the discharge and cause of noncompliance; and
b. The period of noncompliance, including exact dates and times; or,
if not corrected; the anticipated time the noncompliance is expected
to continue, and steps being taken to reduce, eliminate and prevent
recurrence of the noncomplying discharge.
3.' Facilities Operation
The permittee shall. at all times maintain in good working order and
operate as efficiently as possible all treatment or control facilities
or systems installed or used by the permittee to achieve compliance with
the terms and conditions of this permit.
4. Adverse Impact
The permittee shall take all reasonable steps to minimize any adverse
impact to navigable waters resulting from noncompliance with any effluent
limitations specified in this permit, including such accelerated or
additional monitoring as necessary to determine the nature and impact of
the noncomplying discharge.
5. Bypassing
Any diversion from or bypass of facilities necessary to maintain compliance
with the terms and conditions of this permit is prohibited, except (i) where
M8&I7

nfil;T I
Permit No. NC
unavoidable to prevent loss of life or severe property damage, or
(ii) where excessive storm drainage or runoff would damage any
facilities necessary for compliance with the effluent limitations
and prohibitions of this permit. The permittee shall promptly
notify the Water Quality Section of DEM in writing of each such
diversion or bypass.
6. Removed Substances
Solids, sludges, filter backwash, or other pollutants removed in the
course of treatment or control of wastewaters shall be disposed of in
a manner such as to prevent any pollutant from such materials from
entering waters of the State or navigable waters of the United States.
7. Power Failures
In order to maintain compliance with the effluent limitations and
prohibitions of this permit, the permittee shall either:
a. In accordance with the Schedule of Compliance contained in Part I,
provide an alternative power source sufficient to operate the waste-
water control facilities;
or,if such alternative power source is not in existence, and no date for
its implementation appears in Part I,
b. Halt, reduce or otherwise control production and/or all discharges
from wastewater control facilities upon the reduction, loss, or
failure of the primary source of power to said wastewater control
facilities.
8. Onshore or Offshore Construction
This permit does not authorize or approve the construction of any onshore.
or offshore physical structures or facilities or the undertaking of any
work in any navigable waters.
:

PART II
Permit No. NC
B. RESPONSIBILITIES
1. Right of Entry
The permittee_ shall aiioo th« Director of the Division of Environmental
Management, the REr1ior;i Armir,istrutor, and/or their authorized represen-
tatives, upon the presentations o+ credentials:
a. The enter- upon the permitt:ee's premises where an effluent source is
located or in whic`% any records are required to be kept under the
terms and condi t . ons of this permit; and
b. At reasonable tines to have access to and copy any records required
�o be kept unr!-_r zhe terms and conditions of this permit; to inspect
any monitoring equioment or monitoring method required in this permit;
and to sample 2ny discharge of pollutants.
2. Transfer of Ownersh,io or Control
This permit is not trar:sferable. In the event of any change in control
or ownership of . zilitifLs from which the authorized discharge emanates
or is conteTollate::, the permittee shall notify the prospective owner or
controller by letter cf the existence of this permit and of the need to
obtain a permit Ir the name of the prospective owner. A copy of the
letter shall he,fon-jarded to the Division of Environmental Management.
3. Availability of Reports
Except for data detev7d ned to be confidential under N. C. G. S. 143-215.
3(a)(2) or Section 308 of the Federal Act, 33 USC 1318,-all reports prepared
in accordance with the terms shall be available for public inspection at the
offices -of the Division of Environmental Management. As required by the Act,
effluent data shall not be considered -confidential. Knowingly making any
false statement on any such report may result in the im osition of criminal
penalties as provided for, in N. C. G. S. 143-215.6(b)(2� or in Section
309 of the Federa-; Act.
4. Permit Modificat-,or,
After notice and ocuarturi ►`:y 1cor a hearing pursuant to N. C. G. S. 143-
215.1(b)(2) and . S_ 14 215.1(P) respectively, this permit may be
modified, suspendf:;, or revoked in whole or in part during its term for
cause - i ncl udi nc, ;: rat rot i i ni ted to, the following
a. ;'iolation of any terms or conditions of this permit;
b. Gbtainirg th',s permit by. nisrepresentation or failure to disclose
Fully i relevant 'facts; or
c. A change in any cond ltion that requires either a temporary or
permanent reeduction or elir�ination of the authorized discharge.
M10&I9

PART II
Permit No. NC
5. Toxic Pollutants
Notwithstanding Part II, B-4 above, if a toxic effluent standard or
prohibition (including any schedule of compliance specified in such
effluent standard or prohibition) is established under Section 307(a)
of the Act for a toxic pollutant which is present in the discharge and
such standard or prohibition is more stringent than any limitation for
such pollutant in this permit, this permit shall be revised or modified
in accordance with the toxic effluent standard or prohibition and the
permittee so notified.
6. Civil and Criminal Liability
Except as provided in permit conditions on "Bypassing" (Part II, A-5)
and "Power Failures" (Part II, A-7), nothing in this permit shall be
construed to relieve the permittee from civil or criminal penalties -for
noncompliance pursuant to N. C. G. S. 143-215.6 or Section 309 of the
Federal Act, 33 USC 1319.
7. Oil and Hazardous Substance Liability
Nothing in this permit shall be construed to preclude the institution
of any leaal action or relieve the permittee from any responsibilities,
liabilities, or penalties to which the permittee is or may be subject
under N. C. G. S. 143-215.75 et seq. or Section 311 of the Federal Act,
33 USC-1321.
8. Property Rights
The issuance of this permit does not convey any property rights in either
real or personal property, or any exclusive privileges,. nor does it
authorize any in, -Jury to private property or any invasion of personal
rights, nor any infringement of Federal,State or local laws or regulations.
9. Severability
The Provisions of this permit are severable, and if any provision of this
permit, or the aaulicaiion of any Provision of this permit to any circum-
stance, is held Invalid, the application of such -provision to other cir-
cumstances, and the remainder of this permit shall not be affected thereby.
M 11 & I 10

PART II
Permit No NC
10. Expiration of Permit
Permittee is not authorized to discharge after the expiration date.
In order to receive authorization to discharge beyond the expiration
date, the permittee shall submit such information, forms, and fees as
are required by the agency authorized to issue permits no later than 180
days prior to the expiration date. Any discharge without a permit after
the expiration will subject the permittee to enforcement procedures as
provided in N. C. G. S. 143-215.6 and 33 USC 1251 et seq..
I 11

?ART III
Permit No. NC
B. Previous Permits
All previous State water quality permits issued to this facility,
whether for construction or operation or discharge, are hereby revoked
by issuance of this permit. The conditions, requirements, terms, and
provisions of this permit authorizing discharge under the National
Pollutant Discharge Elimination System governs discharges from this
facility.
C. Construction
No construction of wastewater treatment facilities or additions thereto
shall be begun until Final Plans and Specifications have been submitted
to the Division of Environmental Management and written approval and
Authorization to Construct has been issued. If no objections to Final
Plans and Specifications has been made by the OEM after 30 days following
receipt of the plans or issuance of -this permit, whichever is latter, the
plans may be considered approved and construction authorized.
D. Certified Operator
Pursuant to Chapter 90A of North Carolina General Statutes, the permittee
shall employ a certified wastewater treatment plant operator in responsible
charge of the wastewater treatment facilities. Such operator must hold a
certification of the grade equivalent to the classification assigned to
the wastewater treatment facilities.
M 19 1 T 19

LABORATORY SHEETS, CHAIN OF CUSTODY

Division of Environmental Management 'l
CHAIN OF CUSTODY RECORD
For Investigation of r , , i K �j tl ` /1'J 1 N —.
Samples collected and DM'1 forms completed by:
VV`=`'�'+
ab Only
Lab No.
Station.
No.
Station Location
Date
Time
No. of
Bottles
L
�� r'Yl ( , f" ��LI � !l'�I �',crtvt
c� � f.
1 r�••f
I �f•D ��
Re nqui
77
Received b nature):
ed b (i ature) : ,_ Y(Si8
I
Date Time
I ..1 s l ?
Rel Rec by L
1. >:Z1,
Rel
✓ Rec by
Rel
Rec by ( ab)
Method of Shipment:
Se
Security a and -Condition: Lock b
Broken--b
en b :
lab No.
From Throu h
-� /
No.
Containers
1.Mu uJa: vi. a+a
Anal sis Relia uished b
b r
Received b
f�
Date Time
o 9;'1

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
1
18
19
20
A
B
C
N.CC)PT. OF NATURAL RESOURCES & CID ONITY
COUNTY: 1G4DEVELOPMENT
RIVER BASIN: 4 DIVISION OF ENVIRONMENTAL MANAGEMENT 0
REPORT TO: FRO MRO. RRO. WaRO WiRO, WSROJS
WATER' QUALITY FIELD -LAB FORM (OM1Y,'i
Other i
Shipped 6y: Bus, Courier, Other SAMPLE TYPE
COLL CTOR(S): 4 r F] AMBIENT' El EMERGENCY- ❑SPLIT COMPLIANCE
BOD RANGE: SEED: STATION LOCATION:
CHIC)RINATFD:
REMARKS: I )_ e- f - e ;­t-i
F—I
Station Number
Date Begin I yy/mm/dd,-
Time Begin
Date End
nt
Time End
Depth DM DB DBM
Type
Composite
54mp
7*
A H L
T 5 a
C.
BODi 3ic mg/l
lChloride940
mg/l
INHi
os;N 610 mg/I
INi
.77777777-
Nickel 1067
COD High ma/l
Arsenic:Total 1002 ug/l
TKN as N 625 mg/1
Pb - Lead 1051
340
. ,
COD:Low 335 mg/l
Chi .: T,i 32217 ug/l
NO +N�3 as N 630 mg/I
Sb - Antiniony 1097 i un/1
Coliform; MF Fecal 31616 /looml
Chi a:Corr 32209 ug/I
PO4 as FP 70507 Mg/I
S6- Selenium.] 1 47
Colilorm;MF Total 31504 /100ml
Pheophytin a 32213 ug/l
P: Total PS P 665 -g/l
Zn- Zinc 1092
Colilorm.Tube Feca131615 /looml
Color: True 80 PI -Co
IPDissolved as P 666 rng/I
Colilorm Tube Total 31505 /loom[
Chromium: H'ex. to 3-2 -ug/I
1Aq - SiNer 1077 ug/I
11'esticides
$pe-cifictilly
Residue Total 500 mg/l
Cyanide 720 MI/I
IA'l - Alumikum]105
Volatile 505 mg/I
Fluoride 951 mg/I
.1Be-
Bei'vIlium1012 ug/I
Scan Orqanochlorirt;'�_"
Fixed 510 ns g/I
Formaldeh71880
Co- Caicium 916 mg/I
Scan Organophosp rus
_yde
Residue:Susoended 530 mg/l
and Oils 556 ­mg/l
Cd - Cqdmiurn 1027 ug/I
Volatile 535 mg/l
-Grease
HarcinessJoral 900 mg /I
-.Co-Cobalt
1037, ug/11
Organics SMifically
Foxed 540 mg/l
MBAS 38260 mg/l
41
Chromium:Totol 1034 UA/11
1
iCu-Co
PH4 03 units
Phenols 32730 ug/I
�1'16�er 1042 ug/I
Scan Base N xfraclaQ!�
Acidity to pH 4 5 436 mg/1
iSulfate 945 -g/I
Fe-, Iroh, 1045 ug/.11
Scan Acid Ex'-
Acidity to PH 8 3 45 mg/I
Sulfide 745 mg/I
Ha-Mrl-ly 71900 ug/I
<
'2
Alkalinity to PH a 3 415 mg/l
Specific Cond. 95 uMhos/cm
Li - Lith , rn iu1132 u9/1
Sbecial Analysis Satecif 619411 _4�1 I
2
NOW,
Alkalinity to PH4 5 410 mg/l
Biomass: Dry Wt. 573 g/M
Mg -Magnesium 927 Mg/I
ITOC 680 mg/11
Biomass: P*ri Ash Free 572 g/M
Mn-Man ganyse 1055
Scan Acid Herbicidei.
it
ITurbidily 76 NTUI
2
a: Peri Fluro 82547 mg/ M
Na-Sooivm,92 9 mg/l
Scan Purqeabtes
-Chi
Sampling Point
Water Tomp*ralure('C)
D.
PH
Conductance
at25°C
Alkalinity
.1c itv
c
E C E
PH 8.3 g PH 4.5
w4.5R pq B.
PT
12*
v i s J
j
63
10
300
400
94
82244 431 82243Water'QuaH6
Secchi (Meters)
Air Temperotur*('C)
D.O.X Saturation
Salinity
Algae: Floating Mats
Precipit 91ion(In/Day)
Win
Cloud Cover; % W
Dirpiction(Ditj
Wind Fort
Severity
Beaufort
NOV :1h
19,85"
18
20
301
480
1325
45
32 36
7
I H, S."lealle
Dead Fi h
Turbidity Severity
odor;Atmosphere
Stream Flow
Detergent $uj,
Oil -Grease Floating
Debris
sluove,
Motte,(ml/l/Hrl
Severity
Severity
Severity
Severit1�
Seve
rit
Wester Ra
ional Of
50086
1340
1350
1330
11351
1Severity
11305
1300 1345
rj!­
DMI/Revised 10/82 7,
6

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
A
B
C
�L
N.0 . PT. OF NATURAL. RESOURCES & COINITY
c NT : /L1 . r r• DEV.ELOPMENT
RIVER BASIN: .C• l r" r,. 'I DIVISION OF, ENVIRONMENTAL MANAGEMENT 0
REPORT TO:.ARO FRO. MRO RRO. WaRO WiRO. WSRO.T$ WATER QUALITY FIELD -LAB FORM (DM1)"
Other
shipped by: Bus, Courier, Other SAMPLE TYPE
COLLECTOR(Sh +� �c�C' � c.� AMBIENT EMERGENCY —]SPLIT COMPLIANCE
BOD RANGE: SEED: STATION LOCATION: �F t� T /c.! �'` c
C•HIC)RINATFD: REMARKS: 0,:, +' - T
Station Number
Date Begin (yy/mm/cicl,
Time Begin
Date En
Time End
Depth DM DB DBM
Value Type
A
Composite
Sample .ype,
C
CD v , �' / / c Li
H l
T S B
BODS 310 m /I
Chloride94 m /I
INHI
as N 610 m /I
Ni - Nickel 1067 v /
COD High 340 m /
Arsenic: Total u /I
TKN as`N 625 m
Pb- ad 1 `A /
COD Low 335 m /
Chi o: Tri 32217 1yu /I
NO •N as N 630 m /I
S - Antimony 1097 u /
Coliform:MF Fecal 3l 16 /100 1
Chi a:Corr 2209 u /I
P as P 70507 m /I
- Selenium u
Coliform MF Total 04 /IOOm1
Pheo h tin a 32213 us/I
P: Total as P 665 m /I
Zn- Zinc 1
Coliform Tube Fecal31615 /100ml
Color:True 80 Pt -Co
P`Dissolved as P666 mg/ I
Coliform Tube Total 31505 /100mI
'./I
A- Silver 077 u/I
Pesticides Specifically
Residue Total 500 m /I
Cyanide 720 m /I
AI - Aluminum.1105 u li
Volatile 505 m /I
Fluoride 91 mg/1
Be- Beryllium 1012 /I
Scan Or anoehlorine' 7
Fixed 510 m /I
Formaldehyde 71880 m /I
Co - Calcium 916 mg/I
I Scan Orgarsophotiphorus
Residue -Suspended 530 m /I
Grease and Oils 556 •m /I
Cd- Cadmium 1027 u /
Volatile 535 m /I
ardness:Total qQo mg/1
Co- Cobalt 1037 ug/I
Organics Specifically
Fixed 40 m /I
MBAS 38260 m /I
Chromium; Total 1034 u /
Scan Base / NeutralIxtractcblei;
H 403 units
P enals 32730 u /
Cu=C er 1042 ug/l,
f
Acidity to PH 4 5 436 m /I
Sulfate 945 m /I
Fe- Iron' 1045 u /I
Scan Acid Extractable
Acidity to PH 8 3 435 m /I
Sulfide 745 m /I
H -M rcur 0 u /I
Alkalinity to PH 8 3 415 m /I
5 ecific Cond. 95 uMhos/cm.
Li - Lithium 1132 ug/l
$ ecial Analysis ecifica
Alkalinity to PH 4 5 410
Biomass: Dr Wt. 573 g/M
M -Magnesium 927 m /I
TOC 8
ANTU
2
Biomass: Peri Ash Free 572 g/M
Mn -Manganese 1055 u /I
Scan Acid Herbit' es
Turbidit 7 '.2,.?1
2
Chl a: Peri Fluro 825a.l.7 mg/M
Na -Sodium 929 m /
Scan f°ur sables .77
Sampling Point
Water Temperature(QC)
D.O.
pH
Conductance
at25°C
Alkalinity
8.3 4.5
r
E +�BE
PT e
PH PH PH4.R
4 {:
63 2
10
300
400 ,94
82244 431 8224
Secchi(Meters)
Air Temperature (°C)
D.O.%Saturation
SalinityX.
Algae:FloatingMats
Preciptfation(In/Day)
Cloud Cover:% Wind
Pire flbn ey.
m orCf
Seventy
Beoulort
'{
'il�"";'y'''^.'}',;:: g..
78
20
301
480
1325
45
32 36
'
3
Hr Settles a
Dead Fis
Turbidity Severity
Odor:Atmosphere
Stream Flow
Detergent Suds
0i -Grease Floytinp
41ir
Slu Q� Severity `
Maner(m1Jl/Hr1
Severity
Severity
Severity
Severity'
Severity Severity
11
ester n {Zeal
yjal 0f`ficlik.'..`=1.
50086
1340
1350
1330
11351
11305 11300
11345W
DMI/Revised 10/82 Rl lavnlC, IVUrlrl %_dr011ifi' ,r
' v.r

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
11
18
19
20
A
B
C
'1
N.C. DEPT. OF NATURAL RESOURCES & COMMUNITY
/1 j�j� r� 7
COUNTY �} t = = �=
DEVELOPMENT
LAB NUMBER
00008:�',����ZCJ
��� !lrJ `��-� Time
RIVER BASIN' r
DIVISION OF ENVIRONMENTAL MANAGEMENT
DATE
RECIE`VED
REPORT TO ARO,FRO MRO RRO WaRO WiRO, WSRO TS
WATER QUALITY FIELD -LAB FORM (DM1)
0
Recd
bv: �I�tJJ ` . From: Bus- Courier -Other
( ^
Other
SAMPLE TYPE
DATA
ENTRY BY: �� `^ CK:
by. Bus, Courier, Other
AMBIENT EMERGENCY DSPLIT
COMPLIANCE
DATE
REPORTED: :�� /.:)' r /"
COLIECTOR(S).
BOD RANGE: SEED'
STATION LOCATION tk� /1f t +-7
CHLORINATED: _
REMARKS F fr 1 F T- /�r� I . l
C',
Station Number
Dare Begin yy/mm/
�i
Time Begin
1
Dale En
Time En
Dept DM DB DBM
Va ue Type
A H L
Composite
T S B
Sample Type
C(�G:) GNXX
8005 310 mg/1
Chloride94 m /I
INHA as N 610 m /I
Ni - Nickel 1067 v /
COD High 40 r^ /1
Arsenic: Tot u /I
TKN as N 625 m /
Pb— Lead 1051 u /
COD low 335 r* /
Chi a: Tri 32217 u /I
NO *NO as N 630 m /I
S - tim n 1 97 u /l
Colilorm.MF Feca131 16 /100ml
Chi a:Corr 2209 u /I
P as P 70507 nt /I
_ Seleniumu I
Coliform MF Total 04 /100ml
Ph o h tin a 32213 u /I
P: Total as P 665 m /I
Zn- Zinc 109 u /I
Coliform Tube Feca131615 /100m1
Color: True 0 Pt -Co
P'Dissolved as P666 m /I
Coliform Tube Total 31505 /100mll
Chromium: Hex.1032 u /I
A - Silver 1077 u /I
PesticidesSpecifically
Residue Total500 m /I
C anide 720 m /I
Al - Aluminum TICS a/.I
Volatile 505 m /I
Fluoride951 rn /I
Be- Beryllium 1012 /I
Scan Or anochlorine
Fixed 510 n /I
Formaldehyde71880 mg/1
Ca- Calcium 916 m /I
Scan COr also hos horus
/
Residue:Sy,pen ed 530 m /1
d
rn
Grease and Oils 556 /I
Cd- Cadmium 1027 u /
Volatile 535 rT /I
Hardness:Total 9 0 m /I
Co- Cobalt 1037 ug/I
Or onies Specifically
Fixed S40 mg/1
MBAS 38260 m /I
Chromium;Total 1034 u /
H403 units
Phenols 2730 u /I
Cu-C000er 1042, u /
Scan Base / Neutral Extractables
Acidity to H 4 5 436 m /l
Sulfate 945 n /I
Fe- Iron 1045 u /I
Scan Acid Extract le$
to H 8 3 435 m /I
Sulfide 745 m /I
H -Mercur 0 u /I
—Acidity
Alkalinity toPH 8 3 415 m /I
Specific Cond. 95 uMhos/cm
Li -. Lithium 1132, u /
$ ecial Analysis $ ecificalty
Alkalinity to H 4 5 410 rn /I
2
Biomass: DryWt. 573 9/M
,
Mg -Magnesium 927 m /I
TOC 8 m /I
2
Biomass: Peri Ash Free 572 g/M
Mn —Manganese 1055 v /I
Scan Acid Herbicides
-
Turbidity7 NTU
2
Chl a: Peri Fluro 82547 n9/M
No - Sodium 929 mg/Img/11
Scan Purciect6les
Sampling Point
PT
6 2
Water Temperature(°C)
10
D.
300
pH
400
Conductance
at 25°C
94
Alkaiinily
pH 6.3 pH 4.5 pH
82244 431 82243
Acidity
4.5 PH 8.3
82242
Secchi(Meters)
78
Air Temperature(°C)
20
D.0 % Saturation
301
Salinity%,
480
Algae: Floating Mats
Severity
1325
Preiipitotion(In/Day)
45
Cloud Cover:% Wind
32 36
Direction(Deg.)
Win Force
Beaufort
37
1 Hr Settleable
Matter(ml/I/Hrl
50086
Dead.Fish
Severity
11340
Turbidity Severity
-
11350
Odor:Atmosp ere
Severity
11330
Stream Flow
Severity
0351
Detergent Suds
Seventy
1305 11300
Oil -Grease Flooring
Severity Severn
Debris
Y
Sludge Severity
11315
DMl/Revised 10/82

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
A
B
C
N.C. DEPT. OF NATURAL RESOURCES & COMMUNITY.-
r+ LAB NUMBER 00008:
COUNTY DEVELOPMENT —�
RIVER BASIN - - DIVISION OF ENVIRONMENTAL MANAGEMENT DATE RECIEVED %)0_ �y ' '� Time
REPORT TO ARC), FRO MRO RRO WaRO WIRO, WSRO TS
WATER QUALITY FIELD -LAB FORM (DMff Rec'd by: ��>'-From: Bus -Courier -Other
Other
Shipped by Bus, Courier, Other SAMPLE TYPE
COLLECTORM: aAMBIENT ❑EMERGENCY ❑SPLIT
BOD RANGE
CHLORINATED:
SEED'
DATA ENTRY BY: `� _Aj f CK:
✓,COMPLIANCE DATE REPORTED..;,/r='
STATION LOCATION: �T0r-7
REMARKS: L` if�, c , lr /.1 d s ,1T? + (' �i uy i •t r o J�
Station Num er
C
Dole Begin yy/mm/
,o r6
Time Begin
Date En
Time En
Dept DM DB DBM
Va u6 Type
A H L
Composile
T S B
Sample Type
C CG GNXX
BOD 10 m /f
Chloride94 m /I
NH1 as N 610 m /I
Ni - Nickel 1067 v /
COD High 340 m /I
Arsenic:Toto u /I
TKN as N 625 mg/Img/I
P - Load 1051 u /
COD Low 335 mg/Img/I
Chl a: Tri 32217 u /I
NO +NO as N 630 m /I
Sb- Antimony 1097 u /I
Coliform MF Fecal 31616 /100ml
Chl o:Corr 32209 u /I
PO4 as P 70507 rn /I
- Selenium l
Coliform MF Total 31504 /100m1
Pheo h tin a 32213 u /I
I P: Total as P 665 m /1
Zn- Zinc 109 u /1
Coliform Tube Feca131615 /100m1
Color: True 80 Pt -Co
P' Dissolved as P 666 mg/ I
Cciliform Tube Total 31505 /100m11
Chromium: Hex.1032 u /I
A - Silver 1077 u /I
Pesticides Soecifically
Residue Total 500 m /1
Cyanide 720 m /I
Al -Aluminum 1105 u /•I
Volatile 505 m /I
Fluoride951 rng/I
Be- Beryllium 1012 /1
Scon Or anochlorine
Fixed 510 m /I
Formaldehyde 71880 m /I
Cc- Calcium 916 m /I
Scan Or an0 hoS horus
Residue Sy5pended 530 -i y� mg/I.
Grease and Oils 556 m /I
ICd- Cadmium 1027 u /
Volatile 535 m /I
Hardness:Total900 m /I
Co -.Cobalt 1037 ug/I
Or oni s $ cificoll
Fixed 540 m /I
MBAS 38260 m /I
Total 1034 . u /
H403 units
Phenols 32730 u /I
-Chromium:
Cu-Co er 042 u /I
Scan Base / Neuttal Extractables
Acidity to pH 4 5 436 m /I
Sulfate 945 m /I
Fe- Iron 1045 a /I
I Scan Acid Extr ctables
Acidity to PH 8 3 435 n /I
Sulfide 745 m /I
H-Mercury0 u /I
Alkalinity to PH 8 3 415 m /I
Specific Cond. 95 uMhosAm
Li -. lithium 1132 ug/I
$ eciol Analysis Specifically
Alkalinity to PH 4 5 410 m /I
2
Biomass: Dry Wt. 573 g/M
M - Magnesium. 927 m /I
TOC 8 rn /I
2
Biomass: Peri Ash Free 572 g/M
Mn -Manganese 1055 u /I
Scan Acid Herbicides
_
Turbidit 7 NTU
2
Chi a: Peri Fluro 82547 mg/M
No - Sodium 929 ma/Ima/11
Scan Pur eables
Sampling Point
PT
63 2
Water Temperature(°C)
10
D
300
pH
400
Conductance
at 25"C
94
Alkalinity
PH 8.3 pH 4.5 PH
182244 431 82243
Acidity
4.5 pH 8.3
82242
Secchi(Meters)
78
Air Temperoture(°C)
20
0.0.%Saturation
301
Salinity%,
480
Algae: Floating Mats
Severity
1325
Precipitation(in/Day)
45
Cloud Cover;% Wind
32 36
Direclion(Deg.)
Wind Force
Beaufort
37
1 Hr Settleable
Matterlmlll/Hrl
50086
DeadFish
Severity
11340
Tur�idily Severity
11350
Odor;Atmosp ere
Severity
11330
Stream Flow
Severity
11351
Deler$ent Suds
Seventy
1305 11300
Oil -Grease Floating
Severity Sever
11345
Debris
it Y
Sludge Severity
11315
DMI/Revised 10/82

vi.
JANUARY 10, 1986, NOTICE OF NON-COMPLIANCE

State of North Carolina
Department of Natural Resources and Community Development
Asheville Re4rional Office
James G. Martin, Governor S. Thomas Rhodes, Secretary
C3ERTIFIED MAIL
RETURN RECEIPT REQUESTED
Mr. Ernest A. Klatt
Gem City Mine
44 East Main Street
Franklin, North Carolina 28734
Dear Mr. Klatt:
DIVISION OF ENVIRONMENTAL MANAGE.^�tT
WATER QUALITY SECTION
January 10, 1986
Subject: Notice of Non -Compliance
NPDES Permit NCO058637
And NCGS 143-215.1
Gem City Mine
Macon County, North Carolina
On October 16, 1985, W. E. Anderson and I discovered that the wastewater
treatment system serving the Gem City Mine -had been modified by draining the
final settling pond. In our conversation at the time, you indicated that the
bank enclosing the final settling pond had been breached in April, 1985, in order
to allow, the pond to drain so that earth moving equipment could be operated more
easily near the pond. Since both priAnary settling ponds were completely filled
with sediment, the Gem City Mine was operated the entire 1985 season without an
effective wastewater treatment system. Sampling results indicate that the discharge
into Rabbit Creek contained total suspended solids concentrations of 190 mg/l at
11:40 a.m. and 490 mg/l at 12:40 p.m. on October 16, 1985. National Pollution
Discharge Elimination System Permit Number NC0058637, issued to you effective
October 1, 1984, requires that the daily average concentration of total suspended
solids be no greater than 50 mg/l with a daily maximum concentration of no greater
than 75 mg/l. Thus, the discharge from the Gem City Mine was not in compliance
with NPDES Permit Number NC0058637.
Additionally, modifying the treatment system for this discharge violates Parts
II A.1. and II A.3. of the Permit. Failure to notify the Division of the non-
complaince of the effluent resulting from the modification of the treatment system
violates Part II.A.2. of the Permit. Changing the construction and method of
operation of the treatment system violates Paragraph 143-215.1(3) of the North
Carolina General Statutes. Under Paragraph 143-215.6 of the General Statutes, the
Environmental Management Commission has the authority to assess civil penalities
for these violations. The Asheville Regional Office is revewing this matter
Interchange Building, 59 u/oodtin Place, P.O. Box 370, Asheville, N.C. 28802-0370 • Telephone [phone]
An Equal Opportunity Affirmative Action Employer

Mr. Ernest A. Klatt
January 10, 1986
Page 2
and will inform you of our reconnendation as soon as it is available.
If you have any questions concerning this notice please contact Mr. Anderson
or me at telephone number 704/253-3341.
Sincerely, ,�%
d1 • L�
Forrest R. Westall
Water Quality Regional Office
FRW:1s
Enclosure
xc: Bill Anderson

No. 382234
i- ECEIPT FOR CERTIFIED MAIL
NO INSURANCE COVERAGE PROVIDED —
NOT FOR INTERNATIONAL MAIL
(See Reverse)
SP44T
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POSTAGE
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SHOW TO WHOM, DATE AND
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ADDRESS OF DELIVERY WITH
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TOTAL POSTAGE AND FEES
$
POSTMARK OR DATE

VII.
OCTOBER 10, 1985, NOTICE OF NON-COMPLIANCE

State of North Carolina
Department of Natural Resources and Community Development
Asheville Regional Office
James G. Martin, Governor S. Thomas Rhodes, Secretary
DIVISION OF ENVIRONMENTAL MANAGEMENT
ASHEVILLE REGIONAL OFFICE
WATER QUALITY SECTION
October 10, 1985
Mr. Ernest Klatt
Gem City Mine
44 East Main Street
Franklin, North Carolina 28734
SUBJECT: Notice of Non -Compliance
NPDES Permit Number NCO058637
Gem City Mine
Macon County, North Carolina
Dear Mr. Klatt:
National Pollution Discharge Elimination Permit Number NCO058637 which became
effective October 1, 1984, and expires September 30, 1989, requires the submission
of self -monitoring reports for each permitted wastewater discharge. Review of the
files indicates that no monitoring reports have been submitted for 1985. Failure
to submit monthly -self -monitoring reports does not comply with the conditions of
NPDES Permit Number NCO058637 (Monitoring Requirement Sheet enclosed).
Title 15, paragraph 143-215.114 of the North Carolina Administrative Code
(enclosed) provides for the assessment of civil penalties against any person who
fails to act in accordance with permit requirements. If you wish to make known
any reasons or mitigating circumstances which would affect the recommendation
for the assessment of civil penalties, you should do so in writing by October 31,
1985.
Thank you for your .prompt attention to this matter.
Sincerely,, s
Forrest R. Westa 1
/sb Environmental Supervisor
Enclosure
cc: Bob DeWeese
Bill Anderson -L
interchange Building, 59 Woodfin Place, P.O. Box 370, Asheville, N.C. 28802-0370 • Telephone [phone] -
- An Equal Opportuniry...Affirmative Action Employer

li 143-215.114. Enforcement. procedurett. — (a) Ci•: ii-
(1) A civil penalty of not more than five thot:sand doll:ur!: (SS.(.lUO) m::ti be
assessed against any person w rio:
a. Violates any classification, standard or limitation established
pursuant to G.S. 143-215.107; l
b. Is required but fails to apply for or to secure a hermit required bV j
G.S. 143-215.108 or who violates or faiis to act in accordance with
the terms, conditions, or requirements of such Kermit;
c. Violates or fails to act in accordance with the terms, conditions, or
requirements of any special order or other appropriate document
issued pursuant to LS. 143-215.110:
d. Fails to file, submit, or make available, as the -case may be, any
documents,. data or reports required -by. this Article;
e- Repealed by Session..Laws.1979, c. 545, s. 4.
f.. Violates any duly adopted regulation of .the Environmental
.Management Commission. implementing the 'provisions of this
Article.
(2) Each day of continuing violation after!written notification from the
Commission -shall be considered a separate offense.
(3) In determining -the amount of the penalty the Commission shall consider
the degree and extent of harm caused by the violation, the cost of
rectifying the.damage; and the amount of money the violator saved by
'not having- made.::they necessary:•: expenditures - to comply with .the
..-appropriate -pollution control requirements.
(4) The Environmental ..Management Commission, or, if authorized by the
Environmental Management Commission, the Department of :Natural
Resources and Community Development, may assess the penalties
provided for in this -subsection_. Any person. assessed shall be notified
of the assessment by reggistered or certified mail, -and the notice shall
specif}• the -reasons ion.the,assessment. If the person assessed fails to
pay the amount of the.. assessment to the Department of Natural
Resources and Community Developmentwithin 30 days after receipt of
notice, or such longer period, not to exceed 180 days, as the
Environmental Management Commission may - specify, the
Environmental Management Commission may institute a civil action in
the Superior Court of Wake County to recover the amount of the
assessment In anv such civil action, the scope of the court's re'liew of
the Env ronmental -Management Commission's action (which shaII
include a :r%^ew of the amount of the assessment), shall be as provided
in Chapter 150A of the General Statutes.
(:9 9, c. 515, ss. 4-6.),
ditar's Note. —
Tne 1979 amendment, effective July 1, 19 9, in
sui­c—_,ion (a), deleted paragraph a of
sui�ivsion (1). which read: -Refuse access to
the Environmental M&nagement Commission or
:n duly designated re-presentative-8 to any
prcnis-es for the purpose of -conducting any
invest"tions provided for in this Article: or."
Tlx amendment rrwrot.e subdivision (2). which
formerly provided for a 55.000 per day penaity
for willful violations of subsection (a), and
substituted "violation and the amount of money
the violator saved by not having made the
necessary expenditures to comply with the
appropriate pollution control requirements" for
"violation and" rear the end of subdivision (3).
As the rest of the section was not charged by
the amendment, only subsection (a) is set out.

§ '43-215.114- Enforcement pro-cedure_t. — (a.) Civil 1'rnaltie —
(1) ri civil verialw of not more than five thousand doll:ir. (a ),u(n")i m.:)'i ne
a ;5essed against anv Derson wiio:
a. Violates any classification, standard or iimitation established
pursuant to G.S. 143-215.107;
b. Is required but fails to apply for or to secure a. hermit required by!
G.S. 143-215.108 or who violates or faiis to act in accordance with I
the terms, conditions, or requirements of such permit;
c. Violates or fails to act in accordance with the terms; conditions, or
requirements of any special order or other appropriate document
issued pursuant to LS. 143-215.11C;
d. Fails to file, submit, or make available, as the case may be, any
documents, -data or reports required by this Article;
e. Repealed by Session Laws .1979, c. 545, s. 4.
f. Violates any duly . adopted -:regulation of the Environmental
Management: Commission implementing ...the_ provisions. of this -
Article.
(2) Each day of continuing violation after written notification from the
Commission shall be considered a separate offense.
(3) In determining the amount of the penalty the Commission shall consider
the degree and extent of .harm caused by the violation; the cost of
rectifying the damagge, and the amount of money the vioiator saved by
not having?. made the:11necessary expenditures.. to comply with the
appropriate pollution control -requirements.
(4) The Environmental Management Commission, or, if -authorized by the
Environmental Management Commission, the Department of :Natural
Resources and Community Development, may assess the penalties
provided for in this subsection. Any person -assessed shall be notified
of the assessment by registered or certified mail, and the notice shall
specify the reasons for the assessment. If the pperson assessed fails to
pay t..e.amount of the assessment to'the Department of Irratural
Resources and Community Development within 30 days after receipt of
notice, or such longer period, not. to exceed 180 days, as the
Environme ;tal Management Commission may specify, the
Environmental Management Commission may institute a civil action in
the Superior Court of Wake County to recover the amount of the
assessment In any such civil action, the scope of the court's review of
the Environmental Management Commission's .action (which shall
include a review of the amount of the assessment), shall be as provided
in Chapter 1SOA of the General Statutes.
5-15, ss. 4-6.)
Ediwr's Note. —
Tne :079 amendment, effective July 1, 1 O 9, in
a-0 or, (a), deleted paragraph e of
sui*!i�ion (1). which read: "Refu+es access to
uhc Environmental :Management Commission or
:^_c duty designated representativts to any
prtmises for the purpose of conducting any
:nvestiza6on3 provided for in this Article: or"
ih< tmendment rrwrote subdivision (2). which
formerly provided- for it 45.000 per dzy penaity
for willful violations of subsection (a), and
substituted "violation and the zrnount of money
the violator saved by not having made the
necessary expenditures to comoly with the
appropriate pollution control requirements" for
"violation and" rear the end of subdivision (3).
As the rest of the section was not changed by
the amendment, only subsection (a) is set out.

VIII.
REPLY TO OCTOBER 10, 1985, NOTICE OF NON-COMPLIANCE

ERNEST A. KLATT
Lapidarist and Co -Mgr.
Ph. 704-524-4191
Franklin, N. C.
t.,, rL,-,t�
Wa,cr Quality Division
RUBY CITY RN 1 � 1985
ERNEST F. KLATT
l�y west.�vY w-ional offce
Gems & Minerals t- �h���66 nton76aa&,"korida
Winter Residence
FRANKLIN, N. C. • '
Phone [phone]
W07 Aut,0 —
ce-
S4,4-11 Y/ 1�950
=01
� 9� ate._ � � �-. �,� ✓ILdt ,�
�vlC O`
�e
11��
a-46 e
c
r ;. 1ARGEST-AND 'FINEST .,.GEMSHOP IN THE SOUTHEAST -S. A.
L�=ggm�6
/4wv--, cc
x�f ;2a-

�e a srnrft
13
�d
.14
State of North Carolina
Department of Natural Resources and Community Development
Asheville Regional Office
James G. Martin, Governor S. Thomas Rhodes, Secretary
DIVISION OF ENVIRONMENTAL MANAGEMENT
' WATER QUALITY SECTION
ASHEVILLE REGIONAL OFFICE
September 4, 1985
Mr.'Ernest F. Klatt
Ruby City Gem Mine
Box 1477
Boynton Beach, Florida 32435
SUBJECT: Wastewater Discharges from
Tourist Gem Mines
Dear Mr. Klatt:
The Division of Environmental Management has determined that
the most appropriate way to control the quality of effluent from
Tourist Gem Mines is through the use of "Best Management Practic-
es".
For Tourist Gem Mines, this Best Management Practice consists
of the following:
1. Restricting the water flow into the flume to the minimum
useable known value.
2. Construction of a final settling pond which is adequate
to allow twenty-four hour detention time.
3. Construction of final pond influent and effluent struc-
tures which will maximize the efficiency of the pond.
4. Elimination of water inflow to the flume when it is not
in use.
In each case where these systems are installed, the Division
has determined that no effluent or stream monitoring will be
required of the Permittee.
In'tem6nge-&dding, 59 Woodfin• Place, P.O. Box 370, Asheville, N.C. 28802-0370 9 Telephone [phone]
An Equal Opportunity Affirmative Action Employer

September 4, 1985
Page 2
Since each of your mining sites is different, determination
of flows and pond sizes will have to be made on an individual
basis.
Please contact Bill Anderson at [phone] or by mail and E
let him know if you are interested in this approach. If
5.�, Sincerely, �,

IX.
PHOTOGRAPHIC SLIDES WITH INDEX

PHOTOGRAPHIC SLIDES
Photographic Slide Number 1: Is a view of the Gem City Mine
Flume line.
Photographic Slide Number 2: Is a view of the first settling
pond at Gem City Mine. The pond
is filled with solids sufficiently
to reduce its effectiveness to
near zero.
Photographic Slide Number 3: Is a view of the second settling
pond at Gem City Mine. It is also
filled with solids reducing its
effectiveness to near zero.
Photographic Slide Number 4: Is a view of the Gem City Mine
flume line. The settling pond is
in the left foreground, the first
settling pond is'to the right on
the other side of the pile of
dirt.
Photographic Slide Number 5: Is a view of the breach of the
final settling pond looking out-
ward. Rabbit Creek is about 500'
to the left. Note muddy water
flowing under the vegetation.
Photographic Slide Number 6: Is a view of where the finall'set-
tling pond would be if the
containment were not breached.
Photographic Slide Number 7: Is a view toward the inside of the
final settling pond taken from the
breach.
Photographic Slide Number 8: Is Rabbit Creek just upstream from
the confluence with the unnamed
tributary into which Gem City Mine
discharges.
Photographic Slide Number 9: Is a view of the confluence of
Rabbit Creek and the unnamed
tributary into which Gem City Mine
discharges. The U.T. flows
through the metal culvert.
Photographic Slide Number 10: Is another view of the same
location as -slide number nine.
Note relative magnitude of stream
flows.

Photographic Slides
Page 2
Photographic Slide Number 11: Is yet another view of the same
location as slide 9 and 10.
Photographic Slide Number 12: Is a view of Rabbit Creek just
downstream from the confluence
with the U.T. into which the dis-
charge from Gem City Mine flows.
Photographic Slide Number 13: Is a view downstream from the con-
fluence of Rabbit Creek and the
unnamed tributary into which the
discharge from Gem City Mine
flows. This is at a point where
thorough mixing has occurred.
Photographic Slide Number 14: Is a view of Gem City Mine taken
November 12, 1985.
Photographic Slide Number 15: Is a view of the repaired area of
the final settling pond serving
Gem City Mine.
Photographic Slide Number 16: Is a different view of the
repaired area of the final
settling pond serving Gem City
Mine.
Photographic Slide Number 17: Is a view of the final settling
pond serving Gem City Mine after
repair of the breach.
Photographic Slide Number 18: Is another view as the final set-
tling pond serving Gem City Mine
after repair of the breach.
Photographic Slide Number 19: Is a view of the normal over flow
from the final settling pond. It
should be noted that the Gem City
Mine was not in operation when
slides 14 through 19 were taken.

M.
NOTIFICATION OF ENFORCEMENT RECOMMENDATIONS

,_1`,,,� STATf a
7
�"Y wow ws*•
State of North Carolina
Department of Natural Resources and Community Development
Asheville Regional Office
James G. Martin, Governor S. Thomas Rhodes, Secretary
DIVISION OF ENVIRONMENTAL MANAGEMENT
February 10, 1986
Mr. Ernest A. Klatt
Gem City Mine
44 East Main Street
Franklin, North Carolina 28734
Subject: Notification of Enforcement
Recommendation
Violation of NPDES Permit
Number NC0058637, North
Carolina General Statute
143-215.1, and Title 15 of
the North Carolina Administ-
rative Code Section 2B.0506
Gem City Mine
Macon County, North Carolina
Dear Mr. Klatt:
This letter is to advise -you that enforcement recom-
mendations have been prepared and are being transmitted to the
Director, Division of Environmental Management for the -subject
violations. These violations were incurred by failure of Gem
City Mine to submit monthly monitoring reports for April, May,
June, July, August, September, and October, 1985, and for modify-
ing the wastewater treatment facility which serves Gem City Mine
without first obtaining a permit by breaching the containment of
the final settling pond. You will be notified of the Directors
Decision in this matter- following procedural review.
RMD:ls
Sincerely,
Roy M."KAIavis, Regional Supervisor
Division of Environmental Management
Interchange Building, 59 Woodfin Place, P.O Box 370, Asheville, N.C. 28802-0370 • Telephone [phone]
An Equal Opportunity Affirmative Action Employer

XI.
CIVIL PENALTY ASSESSMENT DOCUMENT

State of North Carolina
Department of Natural Resources and Community Development
Division of Environmental Management
512 North Salisbury Street • Raleigh, North Carolina 27611
James G. Martin, Governor
S. Thomas Rhodes, Secretary
CERTIFIED MAIL
RETURN RECEIPT REQUESTED
Mr. Ernest A. Klatt
Gem City Mine
44 East Main Street
Franklin, North Carolina 28734
Dear Mr. Klatt:
R. Paul Wilms
Director
RE: Civil Penalty Assessment for Violations of
State NPDES Permit Number NC0058637,
N.C.G.S. 143-215.1 and 15 NCAC 2B.0506
Macon County, North Carolina W 84
This letter transmits notice of a civil penalty assessed
against Gem City Mine in the amount of
Attached is a copy of the assessment document explaining
this penalty. This action was taken by the Director, Division of
Environmental Management, under the authority vested in him by
NCGS 143-215.6. Any continuing violations(s) may be the subject
of a new enforcement action, including an additional penalty.
Within 30 days of receipt.of this notice, you must:
(1) Submit payment of the penalty; or
(2) Submit a.written request for remission or mitigation,
including a detailed justification for such request; or
(3) Submit a written request for an administrative hearing,
including a statement of the factual or legal issues in
dispute.
Pollution Prevention Pays
P.O. Box 27687, Raleigh, North Carolina 27611-7687 Telephone [phone]
An Eaual O000rtunity Affirmative Action Fmnlover

Mr. Ernest A. Klatt
Page 2
Your response should be directed to my attention at the
following address:
Division of Environmental Management
N. D. Department of Natural Resources and
Community Development
Post Office Box 27687
Raleigh, North Carolina 27611
Additional information about your options is as
follows:
(1) Payment of the penalty will not foreclose further
enforcement action against any continuing or new
violations(s).
(2) A request for remission or mitigation is limited
to consideration of the reasonableness of the
amount of the penalty and is not the proper
procedure for questioning the validity of any
of the factual or legal issues in the attached
assessment document. Because a remission or
mitigation request forecloses your option of an
administrative hearing, such a request must be
accompanied by both a waiver of your right to an
-administrative hearing and a stipulation that
there are no factual or'legal issues in dispute,
other than the reasonableness of the amount of the
penalty. If you request remission or mitigation,
you must execute and return the attached form to
this office before your request will be granted.
(3) If you wish to contest any statements in the
attached assessment document, you must request an
administrative hearing. A request for an
administrative hearing precludes a request for
remission of mitigation and must be accompanied
by a detailed statement of the factual and legal
issues that are in dispute. Relief from an
adverse determination after a hearing is by appeal
to the Superior Court.
Failure to make payment or to exercise one of your options
will result in this matter being referred to the Attorney General
with a request to initiate a civil action to collect the penalty.

Mr. Ernest A. Klatt
Page 3
If you have any questions concerning this matter, please do
not hesitate to contact me.
Sincerely,
R. Paul Wilms
Attachments

XII.
WAIVER OF RIGHT TO ADMINISTRATIVE HEARING AND
STIPULATION -OF FACTS

NORTH CAROLINA
MACON COUNTY
IN THE MATTER OF ASSESS-)
MENT OF CIVIL PENALTY )
AGAINST GEM CITY MINE )
NORTH CAROLINA
ENVIRONMENTAL MANAGEMENT COMMISSION
WAIVER OF RIGHT TO AN ADMINISTRATIVE
HEARING AND STIPULATION OF FACTS
Having been assessed a civil penalty of $ for viola-
tions of as set forth in the assessment docu-
ment of the Director, Division of Environmental Management, of
1986, the undersigned, desiring to seek remission
of civil penalty, does hereby waive its right to an administra-
tive hearing in the above -stated matter and does stipulate that
the facts are as alleged in the assessment document.
This the
ADDRESS
TELEPHONE
day of
by
1986.

XIII.
HISTORCIAL DATA PACKAGE

SLAI
North Carolina Department of Natural
Resources &community Development
•tea, • Jam -es E, Hunt, Jr.. G��vernor James A. Summers, Secretary
DIVISION OF ENVIRONMENTAL MANAGEMENT
WATER QUALITY SECTION
ASHEVILLE REGIONAL OFFICE
January 17, 1984
Mr. Ernest F. Klatt, Owner
Ruby Ci ty Gem Mine
Box 1477
Boynton Teach, Florida 33435
Subject: Notice of Non-compliance
Wastewater Permit No. 6528
Ruby City Gem Mine
Macon County, North Carolina
Dear Mr. Klatt:
On December 22, 1983, you were notified that Permit Number 6528 which
covers the wastewater treatment for the Ruby City Gem Mine had expired. Water
which has been used to separate minerals in your tourist gem mine operation
is considered by the State of North Carolina to be wastewater and, therefore,
requires a permit. The irrigation of pasture land is considered a method of
treatment for wastewater. You should be aware that the pastureland which was
used in previous years has been graded and is presently devoid of vegetation.
The land would probably not be suitable .for irrigation in its present state;
however, the existing pond would probably be adequate treatment for a dis-
charging system. If you desire a permit to discharge wastewater, you should
submit an application and the necessary fees as required;by the enclosed regu-
lations.__ Should you wish to -renew your non -discharging permit, you should
send a renewal request along with the necessary fee as required by the en-
closed regulations.
If you do not understand the above, or have any questions, let me urge
you to have your attorney explain it to you. Operation of the Ruby City Gem
Mine without first obtaining a permit could result in the assessment of civil
or criminal penalties as provided for by State Regulations, and the North
Carolina General Statutes.
I am returning a copy of the December 22, 1983, Notice of Non-compliance
for your records.
Should you or your attorney have any questions, contact Bill Anderson at
( 704) 253-3341.
Si nc rely,
Heath P. Dobson, P.E.
`v HP D/pf Regional Engineer
E closures
1 A evil le Regional Office Interchange Building, 159 VVoodfin Street, P.O. Box. 370, Asheville, N. C. 28802-0370 ; Telephone [phone]

i
North Carolina Department of Natural
- - Resources &Community Development
•� �• James B. Hunt, Jr., Governor James A. Summers, Secretary
P f'— / DIVISION OF ENVIRONMENTAL MANAGEMENT
WATER QUALITY SECTION
ASHEVILLE REGIONAL OFFICE
January 17, 11
C EIVED
Mr. Ernest F. Klatt, Owner Wafer Quattly L rrvision
Ruby City Gem Mine
Box 1477 JAN 31 B84
Boynton Teach, Florida 33435
Western Regional 01Sice
Subject: Notice of Non-compliance /�},evilie, North Carolina
Wastewater Permit No. 652$
Ruby r: #y-,-,Gems Mi ne
Macon _Gountyorth _Carolina
Dear Mr. Klatt:
On December 22, 1983, you were notified that Permit Number 6528 which
covers the wastewater treatment for the Ruby City Gem Mine had expired. Water
which has been used to separate minerals in your tourist gem mine operation
is considered by the State of North Carolina to be wastewater and, therefore,
requires a permit. The irrigation of pasture land is considered a method of
treatment for wastewater. You should be aware that the pastureland which was
used in previous years has been graded and is presently devoid of vegetation.
The land would probably not be suitable for irrigation in its present state;
however, the existing pond would probably be adequate treatment for a dis-
charging system. If you desire a permit to discharge wastewater, you should
submit —an application and the necessary fees as required by the enclosed regu-
_lations. Should ---you wish to renew your non -discharging permit, you should
-
send a renewal request along- with the necessary fee as required by the en-
closed regul ati-ons.
If you do not understand the above, or have any questions, let me urge
you to have your attorney explai-n it to you. Operation of the Ruby City Gem
Mine without first obtaining a permit could result in the assessment of civil
or criminal penalties -as provi-ded- for by State Regulations, and the North
Carolina General Statutes.
I am returning a copy of the December 22, 1983, Notice of Non-compl i-ance-If 0
for your records. ,� Q A i� �C
Should you or your attorney have any questions, con ct B-i-11 Anderson at
( 04)- 253-334 Sincerely
,
eat h P. Dob on, P.E.
HPD -Pf Re ional Engineer
/p g
Enclosures e//,C . �, L•
Asheville Regional Office Interchange Building,169 Woodfin Street, P.O. Box 370, Asheville, N. t. 28802-0370 -Telephone [phone]
A Equal Opportunity Af rmat/ve Action Employer

?l,£ r I Vui I U1ul U111 lu f..lC �,al l6 ii tl
Resources &Community Development
•vV� James B. Hunt, Jr., Governor Joseph W. Grimsley, Secretary
DIVISION OF ENVIRONMENTAL MANAGEMENT
WATER QUALITY SECTION
ASHEVILLE REGIONAL OFFICE
December 22, 1983
Mr. Ernest F. Klatt, Owner
Ruby City Gem Mine
Box 1477
Boynton Beach, Florida 32435
Subject: Notice of Non -Compliance
Wastewater Permit Number 6528
Ruby City Gem Mine
Macon County, North Carolina
Dear Mr. Kl att:
Permit Number 6528, which regulates the wastewater treatment facility serv-
ing the Ruby City Gem Mine expired April 1, 1983. Operation of this facility
without first obtaining a permit from the State of North Carolina is a vio-
lation of North Carolina General Statutes, and Title 15 of the North Carolina
Administrative Code.
If 'you wish to operate the Ruby City Gem Mine, you should file a request
for the pertinent permit in accordance with the enclosed Regulations.
Should you have any questions or require assistance, contact Bill Anderson
at 253-3341.
Si nc rely,
f�J
eath P. Dobson, P.E.
Regional Engineer
HPD/pf
Enclosure
Asheville Regional Office Interchange Building, 159 Woodfin Street, P. O. Box 370, Asheville, N. C. 28802-0370;Telephone 704r153-3341
An Equal Opportunity Affirmative Action Employer
'r

North Carolina Department of Natural
Resources &Community Development
James B. Hunt, Jr., Governor Joseph W. Grimsley, Secretary
,Mr. Ernest F. Klatt, Owner
Ruby City Gem Mine
Box 1477
Boynton Beach, Florida 32435
DIVISION OF ENVIRONMENTAL MANAGEMENT
WATER QUALITY SECTION
ASHEVILLE REGIONAL OFFICE
RECEIVED
December 22, 1983 Water Quality Division
JAN 10 1984
Western Regional Office
Asheville, North Carolina
Subject: Notice of Non-Compllance_
Wastewater.Permit 'Number-,6528
Ruby=.City - Gem- Mine
Macon County,'North Carolina
Dear Mr. Kl att: -u,, L 4"-o- a_<� Lv i-U4 _4�-
mit.,
RerNumber 65.28, which-regu;'L:ates -the.,wastewater -treatment facility serv-
i ng ;the ,Ruby.. City.Gem Mine .exp�;red.:Apri 1. 1 1983. Operation of this`. fact i ty ---
`wi'th'out' first obtaining a permit from the State of North Carolina is a vio-
lation of North Carolina General Statutes, and Title 15 of the North Carolina
Administrative Code.
If you wish to operate the Ruby City Gem Mine, you should file a request
for the pertinent permit in accordance with the enclosed Regulati-ons.
Should you have any questions or
at 253-3341.
HPD/pf
Enclosure
require assistance, contact Bill Anderson
Si nc rely,
e 1
,
T?� Weath P. Dobson, P.E.
Regional Engineer
11 e,2—
T
Asheville. Regional Office Interchange Building, 159 Woodfin Street, P. O. Box 370, Asheville, N. C. 28802-0370', Telephone [phone]
An Eaual Oaaortunity Attlnnative Action Emolover

NC:A'� 2H . ni 5 - . 01.06; ha-ie teen amended as foilov;s :
.0165 [APPLICATION: ENVIRONMENTAL ASSESSMENT FOR NEW SOURCES
(a) Except as provided in Subdivisions (c) and (d) of this
Regulation, any person discharging or who proposes to discharge
pollutants shall complete, sign, and submit, in triplicate, an
NPDES application accompanied by the processing fee described
herein' -for each application in the form of a check or money order
made payable to N.C. Department of Natural Resources and Community
Development. Short Form A (municipal), B (agriculture), C
(manufacturing and mining), or D (Commercial) as appropriate in
accordance with the instructions provided with such forms. All
applications are incomplete until required processing fees are
received and may be returned to the applicant. No processing
fee will be charged for modification of unexpired permits when
the modifications are initiated by the Director to correct
processing errors, to change permit conditions, or otherwise to
implement new standards. The processing fee shall. not apply to
any farmer who submitsan application which pertains to his
farming operation. The processing fee is as follows:
Flow ( gpd ) Fee
Less Than ,999 $ 25.00
1,000 - 4,999 $ 50.00 �1�/J� -�•-�
5, 0 0 0- 49,999 $ 75.00
50; 000 or more $ 100.00 y G aZ. /
(c) Applications for NPDES Permit renewal may be accomplished
by letter with the processing fee described herein in the form of a
check or money order made payable to N.C. Department of Natural
Resources and Community Development, provided the applicant
contemplates no chance in the wastewater volume or characteristics
allowed by the permit about to expire. A renewal application
which contemplates any change in the wastewater volume or
_r -characteristics- -allowed- by --the existing permit --must- be -submitted-
in accordance with Subdivision (a) of this Rule at least 180 days
prior to expiration of an NPDES permit. The notice and public
participation procedures set in Regulations .0109 and .0111 of
this Section shall be followed for each request for reissuance of
an NPDES permit. All applications are incomplete until required
processing fees are received, and may be returned to the
applicant. The processing fee shall not apply to any farmer who
submits an application which pertains to his farming operation.
The processing fee for NPDES Permit Renewal is as follows:
Flow (gpd) Fee
Less Than 999 $ 25.00 �}7
1,000 - 4,999 $ 50.00 � .�:,Ic^�
a r
5,000 - 49,999 $ 75.00
50, 0'00 or more $ 160.00 N QQ
NOV ,i 0 1983

/V
N.C. D IV I'E 10 N OF E N V I'R 0 N M 1"N TA L. M A N A M EN T
I,-- A c I L IT Y
WATER (?UALITY SECTTON
INSPECTION RFPORT BY G_ ao, x . ... . .. ... ....
0 u N Ty
DATE
o..
.... .. . ... .... ... ....
A. GENERAL INFORMATION
TYPE OF F A C IL I'TY .. .... .. ... ... .... . .. ... .... ... .... ....
CI Ass 1
1. *1 111 TV
RECET VING W A T E R.V .. . .. ... . . .... .... .... .... .... .... ... .... ...
CI_.I F1 C A T 10 N
COMPLI'ANCE: 140.S B P T S 1--: CO N D A R Y . .. .... ....
PERMIT '­
­* CD, PP D,
OPERATOR ... . . .... .... .... .... .... .... .... ... .... ... .. . ... .
.. CERTIFICATION: NUMBER ..--.-.GRADE
PERMTT NO, 6... . .. ... ... .... ... ....
EXPIRATION
DATE 1. Jtj 4
COMPI I*ANCE WITH PERMIT ECHEDUL.F: YEE NO N/A
C(.')mPl.l'ANCF WITH mnNTTOF,'l*N(-, PROGRAM: YES NO N/A
ClJRRENT Fi nw DESIGN FLOW
OVERLOADED: YES NO
A
P. EAMPLTNG RESULTE
PARAMETER
INFLUENT
FFFL) j;:j4T
i _IM.TTATIONov
i j F-- E T PE A M.
.ET.MAT.
0 rl .
TEMP.
PES.CL2
COD
r-TCAL
T.EOLIDS
TSS
NH3—N
REMARKS
r2 c.
Ale'

DIVISION OF ENVIRONMENTAL 14ANAGEMENT
WATER QUALITY SECTION
November 10, 1982
Mr. Ernest F. Klatt, Owner
Ruby City Gem Mine
Box 1477
Boynton Beach, Florida 32433
Subject: Expiration of Water Quality Permit
No. 6528
Wastewater Treatment Facility
Ruby City Gem Mi ne
Macon County, North Carolina
Dear Mr. Klatt:
Water Quality Permit No. 6528 which covers the non -discharging waste-
water treatment facility serving Ruby City Gem Mine expired April 1, 1982.
If you wish to continue this operation as a non -discharging system, you
should request renewal of this permit. If you wish to operate the system
with a.discharge from the -settling basins to the stream, you should request
renewal of NPDES Permit No. NCO028851 which expired June 30, 1981. Either
system appears adequate for -the treatment of your wastewater; however, use
of the discharging system will require that the effluent.and stream be
monitored, and the results reported to the Division of Environmental Manage -
You should submit your renewal request to:
Mr. William Mills
Permits Branch
N. C. Department of Natural Resources
and Community. Development
Division- of .Environmental Management
Water Quality Section
-Post Office Box 27687
Raleigh, North Carolina 27611
If you have any questions or -require any assistance, contact me at 704-
253-3341.
Sincerely,
#40. L&--- AA4
W..E. Anderson
Environmental Engineering-
Technician

FORM 187-3 AvalletHe from Jn s Inc, Groton, IAM.01450 NO CARBON PAPER REQUIRED: Type or write on original — Impression will automatically appear on copies beneath.
IF) 'DATE: ' PRIORITY
R / CRUBY CITY GEMSI'i`(� o-�Cse,.� M G !/� �--:) ❑ URGENT!
O v 44 Main Street FILE No. p ❑ SOON AS POSSIBLE
M FRANKLIN, NORTH CAROLING 28734 /' NO REPL NEEDED
ATTENTION:
[phone]
•
SUBJECT!
19821
..........................j tern-Regional.-Offico ..
Asheville, North Carolina
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SENDER: MAIL RECIPIENT WHITE AND PINK SHEETS.
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