NCC000001_Draft Permit_20021127

Lower Neuse Basin Association, Inc.
Raleigh, North Carolina
•
November 19, 2002
1
Michael Templeton
NCDENR NOV 2 7 2002
Division of Water Quality
NPDES Unit
Archdale Building
Mail Service Center 1617
Raleigh, NC 27699-1617
Re: Draft NPDES Permit NCC000001 Neuse River Compliance Association
Dear Mr. Templeton:
As President of the Lower Neuse Basin Association and the Neuse River Compliance
Association, I am submitting the following comments regarding the above-referenced permit.
• The Standard Conditions set out in Part II of the permit are designed to apply to
permittees that own or operate a treatment facility. Since the Compliance Association
does not actually own or operate a facility, many of the standard conditions are
inapplicable. In addition, every co-permittee member as an individual permit
containing the same standard conditions, so there is no need for the standard
conditions in the Association Permit to apply to them. We suggest the following
paragraph 5 be inserted on page 2 of Part II:
5. The following standard conditions are intended to be applicable
to permittees that own or operate a treatment facility. The Director
of the Division of Water Quality, as the Permit Issuing Authority,
acknowledges that the Neuse River Compliance Association does
not own or operate a treatment facility and that each of the Co-
Permittee members holds an individual NPDES permit for the
treatment facility or facilities that they own and/or operate which
includes the following standard conditions. Consequently: (a) the
following standard conditions which, by their terms or meaning,
assume that the permittee owns or operates a treatment facility or
which are inconsistent with the terms of the Special Conditions in
Part 1 of this permit shall not be applicable to, or enforceable
against, the Neuse River Compliance Association; and (b) the Co-
Permittees shall remain subject to and be governed by the standard
P. O. Box 590 Raleigh, North Carolina 27602
[phone]

i
/Michael Templeton
/ November 19,2002
Page 2
conditions in their individual permits and the following standard
conditions shall not be applicable to or enforceable against them.
• The LNBA and NRCA are concerned that inadequate credit has been given for
regionalization of certain treatment facilities. The NRCA Permit Application showed
a total estuary allocation of 1,114,694 pounds of TN. The basis of this allocation was
the Temporary Rule allocat}on made in February, 2000. The Draft Permit now out
for comment shows a total estuary allocation for NRCA of 1,108,312 pounds or 6,382
pounds less than the application. All of these pounds were taken from the small
facilities that were or will be regionalized. In some cases, the major facilities that
regionalized did not get credit for the actual TN that the minor facility was
discharging prior to consolidation. The 6,382 pounds have a value of$4.2 million
($11 x 200% x 30 years) if the pounds had to be bought from the Wetlands
Restoration Fund. Note that this value is based on estuary pounds. If"end of pipe"
pounds were the basis as DWQ has said they will charge, the value would be about$8
million. The LNBA and NRCA are willing to accept this reduction of allocation.
However, in future regionalizations, the full TN allocation of the facility that is
eliminated should be transferred to the facility with which it is consolidated.
If you have any questions regarding these comments or possible draft permit condition
revisions,please contact our attorney H. Glenn Dunn at 783-2842.
Sincerely,
Timothy L. Donnelly,PE
Chairman
Lower Neuse Basin Association and
Neuse River Compliance Association
Cc: Glenn Dunn
Morris Brookhart
RALEIGH/015017-001/354956 v.1