NC0005258_OC20230001_20230220

ROY COOPER
Governor
ELIZABETH S. BISER
secretory
RICHARD E. ROGERS. JR.
Direc: for
NORTH CAROLINA
Envit onmenrai Quattry
February 20, 2023
CERTIFIED MAIL ITEM 7018 1830 0001 8036 8035 - RETURN RECEIPT REQUESTED
Mr. Shane Holland
SGL Carbon LLC
307 Jamestown Road
Morganton. NC 28655
SUBJECT: Assessment of Civil Penalties for Violation(s) of N.C. General Statute(s) 143-215.1
SGL Carbon LLC
NPDES Permit NC0005258
Enforcement Case OC-2023-0001
Burke County
Dear Mr. Holland:
This letter transmits notice of a civil penalty assessed against SGL Carbon LLC in the amount of
$8,287.34, including $787.34 in enforcement costs.
Attached is a copy of the assessment document explaining this penalty. This action was taken
under the authority vested in me pursuant to delegation provided by the Secretary of the Department of
Environmental Quality. Any continuing violation(s) may be the subject of a new enforcement action,
including an additional penalty.
Within thirty days of receipt of this notice, you must do one of the following:
1. Submit payment of the penalty:
Payment should be made directly to the order of the Department of Environmental
Quality (do not include waiver form). Payment of the penalty will not foreclose further
enforcement action for any continuing or new violation(s).
Please submit payment to the attention of:
Ms. Wren Thedford
NC DEQ l DWR / NPDES
1617 Mail Service Center
aleiuh, NC 27699-1617
DENorth Carolina Department of Environmental Quality Division of Water Resources
12 North Salisbury Street 1611 Mail Service Center Raleigh. North Carolina 2"699-161 1
�'rl2liAlEfiL OT ER:'ifVRtl'IPOSxti QL'DIIC( - .

Vase Number OC-2023-0001
Page 2
or
2. Submit a written request for remission including a detailed justification for such
request:
Please be aware that a request for remission is limited to consideration of the five factors
listed below as they may relate to the reasonableness of the amount of the civil penalty
assessed. Requesting remission is not the proper procedure for contesting whether the
violation(s) occurred or the accuracy of any of the factual statements contained in the
civil penalty assessment document. Because a remission request forecloses the option of
an administrative hearing, such a request must be accompanied by a waiver of your right
to an administrative hearing and a stipulation and agreement that no factual or legal
issues are in dispute. Please prepare a detailed statement that establishes why you believe
the civil penalty should be remitted and submit it to the Division at the address listed
below. In determining whether a remission request will be approved, the following
factors shall be considered:
(a.) whether one or more of the civil penalty assessment factors in NCGS 143B-282.1
(b) were wrongfully applied to the detriment of the violator:
(b.) whether the violator promptly abated continuing environmental damage resulting
from the violation;
(c.) whether the violation was inadvertent or a result of an accident.
(d.) whether the violator has been assessed civil penalties for any previous violations;
or
(e.) whether payment of the civil penalty will prevent payment for the remaining
necessary remedial actions.
Please note that all evidence presented in support of your request for remission must be
submitted in writing. The Director of the Division will review your evidence and inform
you of his decision in the matter of your remission request. The response will provide
details regarding the case status, directions for payment, and provision for further appeal
of the penalty to the Environmental Management Commission's Committee on Civil
Penalty Remissions (Committee). Please be advised that the Committee cannot consider
information that was not part of the original remission request considered by the Director.
Therefore, it is very important that you prepare a complete and thorough statement in
support of your request for remission.
In order to request remission, you must complete and submit the enclosed "Request for
Remission of Civil Penalties, Waiver of Right to an Administrative Hearing, and
Stipulation of Facts " form within thirty (30) days of receipt of this notice. The Division
also requests that you complete and submit the enclosed "Justification for Remission
Request. " Both forms should be submitted to the following address:
Charles H. Weaver
NC DEQ / DWR / NPDES
1617 Mail Service Center

Case Number OC-2023-0001
Pa!�e 3
aiewn. NC 27699-1617
or
3. File a petition for an administrative hearing with the Office of Administrative hearings:
If you wish to contest any statement in the attached assessment you must file a petition for an
administrative hearing. You may obtain the petition form from the Office of Administrative
Hearings. You must file the petition with the Office of Administrative Hearings within thirty (30)
days of receipt of this notice. A petition is considered filed when it is received in the Office of
Administrative Hearings during normal office hours. The Office of Administrative Hearings accents
filines Monday through Friday between the hours of 8:00 a.m. and 5:00 p.m., except for official state
holidays. Theaoriainal and one (1) copy of the petition must be filed with the Office of
Administrative Hearines. The mailing address for the Office of Administrative Hearings is:
Office of Administrative Hearings
6714 Mail Service Center
Raleieh. NC 27699-6714
A cony of the petition must also be served on DENR as follows:
Mr. Bill Lane. General Counsel
NC Department of Environmental O_ uaii-
1601 Mail Service Center
Raleigh. NC 27699-1601
A -ease indicate the case number (as found on tmae one of this letter) on the petition.
Failure to exercise one of the options above within thirty (30) days of receipt of this letter. as
evidenced by an internal date/time received stamp (not a postmark). will result in this matter beinu
referred to the Attorney General's Office for collection of the penalty through a civil action. Please be
that actaitional penalties may be assessed for violations that occur after the review period of this
assessment.
If you have any auestions. please contact G. Landon Davidson at 828-298-4500.
incer"
kichard E. RoLaers. Jr.
Director. Division or w ater __
A I i ,- --'

ROY COOPER
Governor
ELIZABETH S. BISER
Secretary
RICHARD E. ROGERS, JR.
Director
STATE OF NORTH CAROLINA
COUNTY OF BURKE
IN THE MATTER OF
NORTH CAROLINA
Environmental Quality
NORTH CAROLINA DEPARTMENT
OF ENVIRONMENTAL QUALITY
CASE NO. OC-2023-0001
SGL Carbon LLC )
FINDINGS AND DECISION
FOR ILLEGAL DISCHARGE OF OIL ) AND ASSESSMENT OF
AND VIOLATIONS OF WATER QUALITY) CIVIL PENALTIES
STANDARDS )
Acting pursuant to North Carolina General Statute (hereby known as G.S.) 143-215.6A. I. John Hennessv.
of the Division of Water Resources (hereby known as DWR), make the following:
I. FINDINGS OF FACT:
A. SGL Carbon LLC is a corporation organized and existing under the laws of the State of
North Carolina.
B. SGL Carbon LLC (hereafter referred to as SGL) is the owner of NPDES Permit
NC0005258. This permit allows the discharge of contact and noncontact cooling water
from a facility located at 307 Jamestown Road, Morganton, Burke County. This
wastewater is discharged into Silver Creek, a Class WS-IV water in the Catawba River
Basin.
C. On December 30, 2022 at 4pm, DWR staff in the NC DEQ Asheville Regional Office
(ARO) was notified that a petroleum sheen was visible in Silver Creek at 913 West
Union St in Morganton, NC and extending approximately 4-5 miles downstream in the
Catawba River. Silver Creek (11-34-(6.5) and the Catawba River (11-(32.7) are both
classified as water supply (WS-IV) streams.
D. On December 31, 2022, ARO staff discovered that the source of the petroleum sheen in
Silver Creek was a discharge of hydraulic fluid from SGL's permitted outfall for NPDES
Permit NC0005258.
E. On January 3, 2023, ARO staff revisited the site and facility. The same sheen intensity
and coverage was observed discharging from the outfall and was visible downstream at
913 West Union St.
�� North Carolina Department of Environmental Quality I Division of Water Resources
D E Asheville Regional Office 12090 U.S. Highway 701 Swannanoa, North Carolina 28778
NORTH CA.ROLINA
[5,artment of Environmental Quab /�`� 828.296.4504

F. The discharge of hydraulic fluid to Silver Creek and visible sheen continued until SGL
Carbon LLC staff located and isolated the source of the hydraulic fluid entering the
wastewater treatment system on January 4, 2023.
G. On January 19, 2023, SGL Carbon LLC received a Notice of Violation & Intent to
Assess Civil Penalty (NOV-2023-OC-0002) dated January 11, 2023, for unlawful
discharge, removal of best use, removal of conditions related to best usage, and violation
of colored or other waste stream standard.
H. The ARO received a response from SGL on January 19, 2023.
I. Based on information from the response to NOV-2023-OC-0002 from SGL, a reasonable
estimate for the amount of hydraulic fluid that discharged into Silver Creek is
approximately 75 gallons.
J. The costs to the State of the enforcement procedures in this matter totaled $787.34.
Based upon the above Findings of Fact, I make the following:
II. CONCLUSIONS OF LAW:
A. SGL Carbon LLC is a "person" within the meaning of N.C.G.S. 143-215.6A pursuant to
N.C.G.S. 143-212(4).
B. Silver Creep and the Catawba River constitute waters of the State within the meaning of
G.S. 143-215.1 pursuant to G.S. 143-212 (6).
C. As documented for December 30, 2022 through January 4, 2023, SGL Carbon LLC
violated North Carolina General Statute 143-215.83 (a) by discharging oil or hazardous
substances into waters of the State, and violated water quality standards: 15A NCAC
0213.0211 (1 ) & (2) through the removal of best use of the surface water for aquatic life
propagation, and survival, and 15A NCAC 02B.0211 (12) for discharging oils, deleterious
substances, colored, or other wastes in amounts that adversely affect the aesthetic quality.
D. N.C.G.S. 143-215.6A (a) (2) provides that a civil penalty of not more than $25,000.00 may
be assessed against a person who violates any classification, standard, limitation, or
management practice pursuant to G.S. 143-214.1, 143-214.2, or 143-215.
E. N.C.G.S. 143-215.6A (b) provides that if any failure to act as required by the rules is
continuous, a civil penalty of not more than $25,000.00 per violation may be assessed for
each day the violation continues.
F. The State's enforcement cost in this matter may be assessed against SGL Carbon LLC
pursuant to G.S. 143-215.3 (a) (9) and G.S. 14313-282.1 (b) (8).

G. John Hennessy of the Division of Water Resources, pursuant to delegation provided by
the Secretary of the Department of Environmental Quality and the Director of the
Division of Water Resources, has the authority to assess civil penalties in this matter.
Based upon the above Findings of Fact and Conclusions of Law, I make the followina:
III. DECISION:
SGL Carbon LLC is herebv assessed a civil penalty o£
$ 2,500
$ 2,500
$ 0
$ 2,500
$ 787.34
$ 8.287.34
for one violation of North Carolina General Statute 143-215.83(a)
by discharging oil or hazardous substances into waters of the State
for one violation of 15A NCAC 02B. 0211 (1) by having a discharge
that resulted in the removal of best use of the surface water for
aquatic life.
for one violation of 15A NCAC 02B. 0211 (2) by having a discharge
that resulted in the removal of best use of the surface water for
aquatic life,
for one violation of deleterious substances stream standard 15A
NCAC 02B .0211 (12) by rendering the water injurious to aquatic
life and affecting aesthetic quality and designated use.
Enforcement costs
TOTAL AMOUNT DUE
Pursuant to N.C.G.S. 143-215.6A (c), in determining the amount of the penalty I have taken into account
the Findings of Fact and Conclusions of Law and the factors set forth at N.C.G.S. 14313-282.1(b), which
are:
The degree and extent of harm to the natural resources of the State, to the public health, or
to private property resulting from the violation;
(2) The duration and gravity of the violation;
(3) The effect on ground or surface water quantity or quality or air quality;
(4) The cost of rectifying the damage;
(5) The amount of money saved by noncompliance;
(6) Whether the violation was committed willfully or intentionally;
(7) The prior record of the violator in complying or failing to comply with programs over
which the Environmental Management Commission has regulatory authority: and
(8) The cost to the State of the enforcement procedures

IV. NOTICE:
I reserve the right to assess civil penalties and investigative costs for any continuing violations occurring
after the assessment period indicated above. Each day of a continuing violation may be considered a
separate violation subject to a maximum $25,000.00 per day penalty. Civil penalties and investigative cost
may be assessed for any other rules and statutes for which penalties have not yet been assessed.
V. TRANSMITTAL:
These Findings of Fact, Conclusions of Law and Decision shall be transmitted to SGL Carbon LLC in
accordance with. N.C.G.S. 143-215.6 (A) (d).
' / A
G'
Date) /J'An Hennessy, Supervi
` Compliance and Expedited Permitting Unit
Division of Water Resources

NORTH CAROLINA DIVISION OF WATER RESOURCES
Violator: SGL Carbon LLC
County: Burke
Case Number: OC-2023-0001
Permit Number: NC0005258
1.
2.
3.
0
5.
ASSESSMENT FACTORS
The degree and extent of harm to the natural resources of the State, to the public health,
or to private property resulting from the violation;
The unlawful discharge of ca. 75 gallons of hydraulic fluid over five days into Silver Creek, a
Class WS-IV waterbody resulted in the removal of best use and a removal of aesthetic quality
for property owners along the affected stream sections. Class WS-IV waters are used as
sources of water supply for drinking, culinary, or food processing purposes. These waters are
also protected for Class C uses. Class C waters are protected for aquatic life propagation,
survival. and maintenance of biological integrity. Additional effects of unpermitted discharges
may detrimental but not immediately quantifiable.
The duration and gravity of the violation;
Based on a report from Burke County EM, the discharge began on December 30.2022 before
4pm and continued until the source of the hydraulic leak was discovered at the facility about
Lnidday January 4, 2023. The visible sheen extended approximately 4.5 miles downstream
from the outfall for NPDES Permit NC005258.
The effect on ground or surface water quantity or quality or air quality;
The discharge without a valid permit resulted in the short-term removal of aesthetic quality of
the stream.
The cost of rectifying the damage;
The cost of rectifying the damage is unknown but would include measures to remove all
hydraulic fluid from Silver Creek..
The amount of money saved by noncompliance;
It's not certain that anv monev was saved by noncompliance.
6. Whether the violation was committed willfully or intentionally;
We believe that these violations were neither willful nor intentional.

'. The prior record of the violator in complying or failing to comply with programs over
which the Environmental Management Commission has regulatory authority;
SGL has previously been assessed civil penalties by the Division, most recently in 210
8. The cost to the State of the enforcement procedures.
The total costs incurred by the State totaled $787.34.
Date J ennessy
Supervisor, Compliance and Expedited Permitting Unit
Division of Water Resources

Case Number OC-2023-0001
Page 4
JUSTIFICATION FOR REMISSION REQUEST
Case Number: OC-2023-0001 County: Burke
Assessed Party: SGL Carbon LLC Permit: NC0005258
V
Amount Assessed: $8,287.34
Please use this form when requesting remission of this civil penalty. You must also complete the "Request For Remission.
Waiver of Right to an Administrative Hearing, and Stipulation of Facts" form to request remission of this civil penalty. You
should attach any documents that you believe support your request and are necessary for the Director to consider in
evaluating your request for remission. Please be aware that a request for remission is limited to consideration of the five
factors listed below as they may relate to the reasonableness of the amount of the civil penalty assessed. Requesting
remission is not the proper procedure for contesting whether the violation(s) occurred or the accuracy of any of the factual
statements contained in the civil penalty assessment document. Pursuant to N.C.G.S. § 143B-282.1(c), remission of a civil
penalty may be granted only when one or more of the following five factors applies. Please check each factor that you believe
applies to your case and provide a detailed explanation, including copies of supporting documents, as to why the factor
applies (attach additional pages as needed).
(a) one or more of the civil penalty assessment factors in N.C.G.S. 143B-282.1(b) were wrongfully applied to
the detriment of the petitioner (the assessment factors are listed in the civil penalty assessment document);
(b) the violator promptly abated continuing environmental damage resulting from the violation (i.e., explain the
steps that you took to correct the violation and prevent future occurrences);
(c) the violation was inadvertent or a result of an accident (i.e., explain why the violation was unavoidable or
something you could not prevent or prepare for);
(d) the violator had not been assessed civil penalties for any previous violations;
(e) payment of the civil penalty will prevent payment for the remaining necessary remedial actions (i.e., explain
how payment of the civil penalty will prevent you from performing the activities necessary to achieve compliance).
EXPLANATION:

Case Number OC-2023-0001
Page 5
STATE OF NORTH CAROLINA DEPARTMENT OF ENVIRONMENTAL OUALIT)
COUNTY OF BERME
ry THE MATTER OF ASSESSMENT ) WAIVER OF RIGHT TO AN
F CIVIL PENALTIES AGAINST ) ADMINISTRATIVE HEARING
AND STIPULATION OF FACTS
SGL Carbon LLC
CASE NUMBER OC-2023-0001
Having been assessed civil penalties totaling $8,287.34 for violation(s) as set forth in the assessment
document of the Division of Water Resources dated February 17, 2023, the undersigned, desiring to seek
remission of the civil penalty, does hereby waive the right to an administrative hearing in the above -
stated matter and does stipulate that the facts are as alleged in the assessment document. The
undersigned further understands that all evidence presented in support of remission of this civil penalty
must be submitted to the Director of the Division within thirty (30) days of receipt of the notice of
assessment. No new evidence in support of a remission request will be allowed after thirty (30) days
from the receipt of the notice of assessment.
This the day of , 2023.
c ,� t
...��aire
ADDRESS
TELEPHONE
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