20060638 Ver 5_Joint Factual Statement Excerpt_20150519

UNITED S.PATES D1,!`!?R1CT C01 ).R'r
FOR THE EASTIRN DISTRICT OF NORM CAROLINA
WESTERN DIVISION
Nc. 5:15-CR-62-H
No. 5:15-CR-67-1,i
No. 5:15-CHM-H
UNITED STATP�S OF AM.-,,RT(A
V.
DUKE ENERGY BUSINESS SERVICES LLC
DUKI-� ENERGY 'CAROLINAS, LLC
I)UKE EN'ERC-Y PRGGM.,''SS,
JCINT �,,-'ACTUAL STATEMENT
D(-,,fendantu Du,ke Energy Business Services LLC ("DUKE ENERGY
Btj0'"1311MESI` 07JERVICES") , Mike Energy Carolinns,
LLC
�"M,IKE
EMli' R'L��Y
CAROLINAS"), and
Duke Energy Progress,
inc.
!"DUKE
ENERGY
PROGRESS"; , (2clleuLlvely
refeired M as "Defendazits")
and
1-he
Unked States of
America, by and through,
t,he
Unlltcd,
S)tatc.,s
Attcrreys for Me
EaMULn Mt ML of North
Carolina,
the
Middle�
District of North ClaxMina and the �,J North
Carolina Frtvircnmental Crimes Section of the JuiLed
Staves DjpaLLmunL of Justice (collectively referred to herein as
"the United States" or "the qgvernment") , hereby agree thai Lhij,
JuM FAMM Matement is a :xue and accurate statament of Me
Defendants' ciriminal conducL and thaL it provides a sufficlewt
t) j, s i , ,, f k 1 Mendants' p1pas ot guil -Ly L u lAw lullowln.j
charging douumeMs Hud Lho wims of che Plea Agreements:

and
United States in Duke Ene
Business Service,,�
MAP q r
United States v. Duke Ene X,jgjjn;ss Serviggy, Ouk(-,,
a n d Q k!�,,,
:roc j
ai
United States v. [N.Ae Enoe,�,!.y_gMhjness Sery�j�
15
The charges from the Middle District of North Cayolina and
the Western Dist.&H of North Carolina have been transferred to
the Enstern District of North Cayolina for purposes, of p'Lea
pursuant to Fed. R. Crim. F. 20. The DedIndants' gui Ity pleas
are to be entered parsuant to the Plea Agreements signed and
dated fl t. day.
Dan River Stearri
1. From at least January 1, 2032, DUKE ENER5Y CAMULINA,15
and DUKE ENERGY BJSINESS SERVICES failed to t operly maintain
and inspect Lhe nwo stormwater pipes underneath Lhgin primary rwad
ash basin as t the an River Stnaw :3 L a L 1w i n Eden. Ito r L h,
Caro 1 1 na. (1, bbbruaqyl 2, 2014, cwz � o f E, 0 (,", L "; f: ''l i I �],
rpsulting in the disnharge of appooximawly 27 millicn gal .do rs
C)t (:!oa] ash was wwat�er ar)d [. eywepn 30,000 rind 39,000 tons C!w11`
coal ash into the Dan Rivet , Tne coal auh Liavelled more than
62 miles downrlupr to the Korr Lake Roservoir ou Lhe burder of
I

NarLh Carolina and Virqjnia. Video camerzti o Zhe
other pLpe, conducted in the aftermath (YC Me spill, revealed
that tho other pipe had also deteriorated, allowing coal assh
wastewater to leak inza the pipe, and that. DUKE ENERGY CAROLIHAS
and DOME ENERGY HJ,SINESS SERVIMS had not taken aj,:)p,ropriate�
uWan to prevent unauthorized discharges from the pipe.
Stpa:'n E1.ecLr,:i,(. Pl,,int -
Middle Di-strlct' "(Tf icl rif-A
2. [)UXE, ENERGY PROGRESS and DUKE EMIRGY BUSINESS SERVICES
also failed to nointain the riser oLructures in two 04 the c0al
ash hasins at the Cape Fear Steam Electric Plant, resulting irl
the unauLborized discharges of leaking coal ash wastewater into
the Capn Fear River.
e,
heV -am Statjc,:Is-,-
ina
& Lee Ste
WART and Western CQ'i`la „�
1, Additionally, DUKE ENERGY CAROLINAS' and DUKE EMERGY
PROGRESS's coal combustion kaQi1ities throughout North Carolina
allowed julauthorized divcharges of taco llutznlLs frcln 00al ash
basins via "seeps” MLu adjacent wators o the United SMMS,
Three of those facilities include Lho Asheville Steam Flectrh,-'.,
Generatinq MaM, Me H. F. imp EMeam EleuL&u Plant, and lhr�.
Riverhend szoam Station. Az Mo..` facilities, .pp scharge5 trorr
naturally occurring seeps WROR channeled by DUKE ENERGY
r., d ". ;Inc! I)OITE EMMY HUM NESS SMICES f-`Lu�,s," u:fircugh
3

enginec-.,red drains and ditches into waters of the UnUed Statv',,
withan obtaining or maintaining t,,,he, necesszry perivits.
4. M? Wendants' COQUOt ViDlated a: he, F e d e r a I Wa- :ear:'
Pollution Control Act (ccmmanly referred to as the "Clean Waser
Act," or WWA"). 33 U.S.C. SS :251 et e speniftcally,
the criminal inveazigation, conductnd out of Lho Eastern
DistriM of North Carolina, revealed tthe owing:
DETIODA14TS, AND c.'01RITORAIT STRUCI'URE
5. Du 1v,,? Enurgy Corporation is W1 energy "company
headquartered in North Caroli-rla.
6. Duke hnorgy Corpr)-r,'-)l ion is a whose
&rect and indirect subzidiaxias opera[�r-', in the Statos
and Latin Anexica. Duke Energy Caxporation's wholly-owned
submidiaries include: DUKE! ENMRGY CAROLINAS; Progress Fberqy''
Jnc. ("Progross Energy"); ME ENERGY PROGRESS; and DUM ENERGY
BUSTNRSS SERVICES.
7, MWE ENERGY CAROLINAS, a North Carolina limited
liabiliLy company, is a regu:Med publir,- uti,-ify
engaged in the generation, uransmission, d3atribuLhAi chid sale
ot ejecixicity in portions Q NorLh Carolina and S=h Carcllna
B. Pruqr= ED K: rgy, a North (", I r: 3 J G'Y a (", () Y 1'') c;'t - a t i a
headquartered in RaMoq North Carol ina, is d 1w1d1 ng company
which huMs, amaig other ent!tles, DUKE ENERGY PROGRMSS.
1,1