20071505 Ver 4_Injunction Request_20100226

February 26, 2010
TO: James C. Gulick
Senior Deputy Attorney General
FROM: Coleen H. Sullins W Ar/
Director, Division of Water Quality
SUBJECT: Request for Injunctive Relief
Seven Falls, LLC
Henderson County
Please initiate a civil action to obtain an injunction against the above named Seven Falls, LLC to compel
compliance with State and Federal water quality regulations at Seven Falls Golf and River Club: Phase
I B Site Improvements (Subdivision Roads), Phase 2A Site Improvements (Subdivision Roads), Golf
Course Phase V, Golf Course Phase VI, and Townhome Village Sites A & B.
0 1/14/09,4/9/09,
DWQ staff from ARO conducted site visits and observed cumulative
7/20/09,10/8/09
impacts to unnamed tributaries of Little Willow Creek, Approximately
3,135 linear feet of stream was impacted from sediment deposition of
up to 21 inches in depth, which includes sediment basins in the stream
channel. In addition, DWQ also observed cumulative impacts to
unnamed tributaries of Folly Creek. Approximately 1,495 linear feet
from sediment deposition of up to 14 inches in depth, which includes
sediment basins in the stream channel
a 5/5/09, 6/2/09 6/4/09,
Staff from the Henderson County Erosion Control Division (HCEC)
10/2/09
conducted site inspections of the subject phases. Inspection reports for
the subject phases revealed the following violations: failure to provide
adequate groundcover, insufficient measures to retain sediment on site,
failure to take all reasonable measures, and failure to maintain erosion
control measures. In addition, offsite sediment and sediment in the
stream were noted during the inspections.
0 2/23/09
ARO issued a Notice of Violation and Recommendation for
Enforcement for violations noted on 1/14/09.
0 8/31/09
f ARO issued a Notice of Continuing Violation and Recommendation
for Enforcement for violations noted on 1/ 14/09, 4/9/09, and 7/20/09.
10/19/09 DWQ ARO received a response to the NOV on 2/23/09. The NOV
response was insufficient and did not include the additional impacts
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Injunction Relief Request (Brief Sunimarv)
2/4/10 CO received Injunction Relief Request Memo
2/4/10 Injunction Relief Request Memo signed by Region
3/4/10 Injunction Relief Request Memo presented to Section Chief
Asheville Regional Office Supervisor, Roger Edwards, states that due to the continuing violations on site,
and continuing water quality impacts from sediment deposition, the DWQ wishes to seek injunctive relief
in order to achieve compliance. There is an urgent need to secure a court ordered compliance schedule
for the stream impacts described above in order to abate and properly resolve the continuing violations
and continuing surface water impacts, Seven Falls, LLC or any future owner needs to take immediate
measures to stabilize the development site in order to prevent additional sediment from entering the
streams. Stabilization of the site is very important. Failing to maintain erosion control measures at the
site has caused significant sediment to continue entering the unnamed tributaries to Folly and Willow
that were outlined in the second NOV dated August 31, 2009.
Additionally, since January, no maintenance, restoration, or
stabilization efforts have been done to address the issues at the site.
0 10/26/09
Keith Vinson, developer of the site, filed for Chapter 11 bankruptcy on
parts of the subject site owned by Seven Falls, LLC
6 11/12/09
Seven Falls, LLC was assessed a civil penalty of $32.739.40 ($32,000
in civil penalties and $739.40 in investigative costs):
0 $ 10,000 for sediment deposition in approximately 3,135 If to
UTs of Little Willow Creek
0 $10,000 for sediment deposition in approximately 1,495 If to
UTs of Folly Creek
0 $9,000 for failing to maintain sediment and erosion control
measures per the NCGO 10000
0 $3,000 for failing to notify DWQ of noncompliance which
may endanger health or the environment per the NCGO 10000
0 11/18/09
Green card indicated delivery of the assessment document. No
response was ever received for the assessment.
0 1/5/10
DWQ CO sent case file to DENR Collections team.
0 1115110
DWQ received a letter from Nexsen/Pruet (Attorneys and Counselors
at Law) representing Seven Falls, LLC, The letter stated that Seven
Falls, LLC filed for Chapter 11 bankruptcy on 10/26/09. Letter also
stated that "any act to assess a claim against a debtor that arose prior to
the filing of the bankruptcy case is automatically stayed" and that no
further response of Seven Falls, LLC to the assessment letter is
required.
The current status of DWQ case # PC-2009-0113 is that the civil
penalty will be decided in Bankruptcy Court once a claim is made by
the AGO. At this time, a claim has not been made by the AGO.
The current status of the site is unchanged,
Injunction Relief Request (Brief Sunimarv)
2/4/10 CO received Injunction Relief Request Memo
2/4/10 Injunction Relief Request Memo signed by Region
3/4/10 Injunction Relief Request Memo presented to Section Chief
Asheville Regional Office Supervisor, Roger Edwards, states that due to the continuing violations on site,
and continuing water quality impacts from sediment deposition, the DWQ wishes to seek injunctive relief
in order to achieve compliance. There is an urgent need to secure a court ordered compliance schedule
for the stream impacts described above in order to abate and properly resolve the continuing violations
and continuing surface water impacts, Seven Falls, LLC or any future owner needs to take immediate
measures to stabilize the development site in order to prevent additional sediment from entering the
streams. Stabilization of the site is very important. Failing to maintain erosion control measures at the
site has caused significant sediment to continue entering the unnamed tributaries to Folly and Willow

Creeks. Most, if not all biotic indicators of the streams have disappeared under the feet of sediment that
exists. It is a major concern that the biology of the stream channels have been altered in such a way that
restoration of these streams needs immediate attention.
It is the understanding of DWQ that Seven Falls, LLC has not succeeded in gaining compliance with
HCEC for the subject site, Seven Falls, LLC continues to receive notices of violations from HCEC, but
little to no improvement in site conditions has been noted.
Current Status of the site:
To date, the site has not been satisfactorily restored. The streams onsite continue to be affected by
sediment deposition with each significant rain fall. The development roads continue to erode during rain
events. The failed erosion and control measures and the lack of installing new measures for erosion
control continue to be issues. The site remains very unstable.
Cc: John Hennessy — NPS Assistance & Compliance Oversight Unit
Roger Edwards/Chuck Cranford -- DWQ Fayetteville Regional Office
Kathy Cooper — Special Deputy Attorney General - AG's Office