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HomeMy WebLinkAboutWQ0014306_Assessment of Civil Penalty_PC-2024-0003_20240220NORTH CAROLINA FnYhvn rental Quay Cartifled Mail #7622 1670 0000 9974 6101 Return ReceiRt Reau%W February 20, 2024 Raymond L Gottlieb, Manager Sandler Utilities at Mill Run LLC 448 Viking Dr Ste 200 Virginia Beach, VA 23452-7331 SUBJECT: Assessment of Civil Penalty for Violations of NC General Statute (G.S.) 143-215.1(a)(6) and Non -discharge Permit No. WQ0014306 Sandler Utilities at Mill Run L L C Eagle Creek WWTP Case No. PC-2024-0003 Currituck County Dear Mr. Gottlieb; This letter transmits a assessment of civil penalty in the amount of $8,635.36 ($8,500.00 civil penalty + $135.36 enforcement costs) against Sandler Utilities at Mill Run L L C. This assessment is based upon the following facts: an inspection of the Eagle Creek WWTP was conducted on October 30, 2023. This' inspection was conducted to verify that the facility is operating in compliance with the conditions and limitations specified in Non -discharge Permit No. WQ0014306. This inspection has shown the subject facility to be in violation of the conditions and limitations found in Non -discharge Permit No. WQ0014306. The violations found during the Inspection are summarized in Attachment A to this letter. Based upon the above facts, I conclude as a matter of law that Sandler Utilities at Mill Run L L C violated the terms, conditions or requirements of Non -discharge Permit No. WQ0014306 and G.S. 143-215.1(a)(6) in the manner and extent shown in Attachment A and the provided Findings and Decision and Assessment of Civil Penalties document. In accordance with the maximums established by G.S. 143-215.6A(a)(2), a civil penalty may be assessed against any person who violates the terms, conditions or requirements of a permit required by G.S. 143-215.1(a). _ North 4od DepwwwM ct DwkwmWnW QUW" I DM" of WNW Brace Nft9&gton Ce*rWOfte 1WNbHrgtm S*we W91 Wbhmpton North Cwo 27M M%46.6AN Based upon the above findings of fact and conclusions of law, and in accordance with authority provided by the Secretary of the Department of Environmental Quality and the Director of the Division of Water Resources, I, David May, Regional Supervisor, Washington Regional Office hereby make the following civil penalty assessment against Sandler Utilities at Mill Run L L C: $8,500.00 For 4 violations of the conditions and limitations specified in Permit No. WQ0014306. $8,500.06 TOTAL CML PENALTY $135.36 Enforcement Costs 635.36 TOTAL AMOUNT DUE Pursuant to 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 G.S. 143B-282.1(b), which are: (1) 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 on 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. Within thirty (30) days of receipt of this notice, you must do one of the following: (1) Submit payment of the penalty, OR (2) Submit a written request for remission, OR (3) Submit a written request for an. administrative hearing Option 1: Submit payment of the penalty: Payment should be made directly to the order of the Department of Environmental Quality (do not include walver form). Payment of the penalty will not foreclose further enforcement action for any continuing or new violatlon(s). Please submit payment to the attention of: Wastewater Branch Division of Water Resources 1617 Mail Service Center Raleigh, North Carolina 27699-1617 Option 2: Submit a wrltben request for remission or mitigation lnduding 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 W the Division of Water Resources at the address listed below. In determining whether a remission request will be approved, the following factors shall be considered: (1) whether one or more of the civil penalty assessment factors in NCGS 143B-282.1(b) was wrongfully applied to the detriment of the petitioner; (2) whether the violator promptly abated continuing environmental damage resulting from the violation; (3) whether the violation was inadvertent or a result of an accident; (4) whether the violator had been assessed civil penalties for any previous violations; or (5) 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 of Water Resources 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 W 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 of Water Resources also requests that you complete and submit the enclosed "Justification for Remission Request." Both forms should be submitted to the following address: Wastewater Branch Division of Water Resources 1617 Mail Service Center Raleigh, North Carolina 27699-1617 • '1� ! 1. '.=111_. • 1! 1. • ' 1 1 . 1 !► _ =1. 1 1.' 1 ■ = !JIL !- !1 :,' 1 7!r •1 If you wish to contest any statement in the attached assessment document 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 accepts filings Monday through Friday between the hours of 8:00 a.m. and 5:00 p.m., except for official state holidays. The petition may be filed by facsimile (fax) or electronic mail by an attached file (with restrictions) - provided the signed original, one (1) copy and a filing fee (if a filing fee is required by NCGS §1506-23.2) is received in the Office of Administrative Hearings within seven (7) business days following the faxed or electronic transmission. You should contact the Office of Administrative Hearings with all Questions regarding the filing fee and/or the details of the filing process. The mailing address and telephone and fax numbers for the Office of Administrative Hearings are as follows: 6714 Mail Service Center Raleigh, NC 27699 6714 Tel: (919) 431-3000 Fax: (919) 431-3100 One (1) copy of the petition must also be served on DEQ as follows: Mr. William F. Lane, General Counsel Department of Environmental Quality 1601 Mail Service Center Raleigh, North Carolina 27699-1601 Please indicate the case number (as found on page 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 being referred to the Attorney General's Office for collection of the penalty through a civil action. Please be advised that additional penalties may be assessed for violations that occur after the review period of this assessment. If you have any questions, please contact David May with the Division of Water Resources staff of the Washington Regional Office at (252) 946-1357 or via email at david.may@deq.nc.gov. Sincerely, i' David May, Regional Supervisor Water Quality Regional Operations Section Washington Regional Office Division of Water Resources, NCDEQ ATTACHMENTS cc: Laserfiche NON -DISCHARGE Compliance/Enforcement Unit - Enforcement File COUNTY OF Currituck WHIVOINu/1109:1 Z671 Eagle Creek WWTP Reclaimed Water Generation, Dedicated Reclaimed Water Utilization, and High Rate Infiltration System FOR VIOLATIONS OF Eagle Creek WWTP PERMIT No. WQ0014306 NORTH CAROLINA DEPARTMENT OF ENVIRONMENTAL QUALITY PURSUANT TO NORTH CAROLINA GENERAL STATUE 143-215.1 File No. PC-2024-0003 FINDINGS AND DECISION AND ASSESSMENTS OF CIVIL PENALTIES Acting pursuant to delegation provided by the Secretary of the Department of Environmental Quality, I, David May, Water Quality Regional Operations Supervisor of the Division of Water Resources, Washington Regional Office make the following: L FINDINGS OF FACT: A. Sandler Utilities at Mill Run, LLC owns and operates the Eagle Creek WWTP Reclaimed Water Generation, Water Utilization, and High Rate Infiltration System, a wastewater treatment and disposal system in Currituck County. B. The Eagle Creek wastewater treatment and disposal system was permitted under Reclaimed Water Generation, Dedicated Reclaimed Water Utilization, and High Rate Infiltration System Permit No. WQ0014306 on August 4, 2021, effective upon issuance, with an expiration date of June 30, 2027. C. Condition No. I. Schedules, 7. of Permit No. WQ0014306 states that "The gauge to monitor waste levels in the 5.5 MG high -rate infiltration basin shall be repaired and functional within 60 days of the effective date of this permit. Caution shall be taken not to damage the integrity of any liner (if present) when installing the gauge. [15A NCAC 02T .0108(b)(1)(B), 02T .0705(c)]" D. Condition No.I. Schedules, 10. of Permit No. WQ0014306 states that "Within 1 year of the effective date of this permit, all trees, shrubs, and other woody vegetation shall be removed from all earthen dikes and embankments of the 5.5 MG high -rate infiltration basin and the 7.431 MG wet weather storage/irrigation pond to comply with Condition III.17. The Washington Regional Office shall be notified upon completion of these repairs. [15A NCAC 02T .0108(b)(l)(B), 02U .0801(g)]" E. Condition No. H. Performance Standards, 1. of Permit No. WQ0014306 states that "The Permittee shall maintain and operate the subject non -discharge facilities so there is no discharge to surface waters, nor any contravention of groundwater or surface water standards. In the event the facilities fail to perform satisfactorily, including the creation of nuisance conditions due to improper operation and maintenance, the Permittee shall take immediate corrective actions, including Division required actions, such as the construction of additional or replacement reclaimed water generation, reclaimed water utilization, and high -rate infiltration facilities. [15A NCAC 02T .0108(bXIXA)]" F. Condition No. III., Operation and Maintenance Requirements, 1. of Permit No. WQ0014306 states that "The Permittee shall operate and maintain the subject facilities as a non -discharge system." [15A NCAC 02T .0700, 02U .0101]" G. Condition No. III., Operation and Maintenance Requirements, 13. of Permit No. WQ0014306 states that "The Permittee shall dispose or use generated residuals in a Division -approved manner. [15A NCAC 02T .0708, 02T .1100, 2U .0802]" H. Condition No. IV. Monitoring and Reporting Requirements, 9. of Permit No. WQ0014306 states that "The Permittee shall maintain a record of all residuals removed from the facility. The record shall be maintained for five years, and shall be made available to the Division upon request. This record shall include: a. Name of the residuals hauler; b. Non -Discharge permit number authorizing the residuals disposal, or a letter from a municipality agreeing to accept the residuals; c. Date the residuals were hauled; and d. Volume of residuals removed. [15A NCAC 02T .0708(b), 2U .0802(b)]" I. On October 30, 2023, the Division of Water Resources (DWR), Water Quality Regional Operations Section (WQROS), conducted a compliance inspection and noted the following: No records of sludge hauling or disposal could be provided by the ORC or EnviroLink The tertiary filter was non -operational and does not contain filter media. The infiltration basin does not have a properly installed staff gauge. Woody vegetation was present around the entire perimeter of the infiltration basin. Reuse water has not been sent to the reuse irrigation pond for at least a year because the tertiary filter is not operational and the effluent isn't meeting quality requirements for irrigation on the golf course. All effluent has been directed to the infiltration basin. The automatic valve that should be connected to and controlled by the turbidity meter to switch flow between the reuse irrigation pond and the infiltration basin is not operational. J. The Eagle Creek WWTP facility does not have a valid permit for the above -described activity. K. Sandler Utilities at Mill Run, LLC received the November 8, 2023, Notice of Violation/Notice of Intent to Assess Civil Penalty on November 10, 2023. L. The cost to the State of the enforcement procedures in this matter totaled $135.36. Based upon the above Findings of Facts, I make the following: 2 H CONCLUSIONS OF LAW: A. Sandler Utilities at Mill Run, LLC is a "person" within the meaning of G. S. 143-215.6A pursuant to G. S. 143-212(4). B. Failure to adequately document sludge hauling or disposal is a violation of Conditions III.13. and IV.9 of Permit No. WQ0014306. C. Failure to have a properly installed staff gauge is a violation of Condition I. 7. of Permit No. WQ0014306. D. Failure to maintain and operate a functional tertiary filter is a violation of Conditions II.1 and III. 1. of Permit No. WQ0014306. E. Failure to maintain the infiltration basin in a condition free of woody vegetation is a violation of Condition I. 10. of Permit No. WQ0014306. F. Sandler Utilities at Mill Run, LLC may be assessed civil penalties in this matter pursuant to G.S. 143-215.6A(a)(2), which provides that a civil penalty of not more than twenty-five thousand dollars ($25,000.00) per violation may be assessed against a person who is required but fails to act in accordance with the terms, conditions, or requirements of a permit required by G.S. 143-215.1. G. The State's enforcement costs in this matter may be assessed against Sandler Utilities at Mill Run, LLC pursuant to G. S. 143-215.3(a)(9) and G. S. 14313-282.1(bx8). H. The Regional Office Supervisor of the Division of Water Resources Water Quality Regional Operations Section, 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 Facts and Conclusions of Law, I make the following: III. DECISION: Accordingly, Sandler Utilities at Mill Run, LLC owner of the Eagle Creek wastewater treatment and disposal system, is hereby assessed a civil penalty of: 08 $ Q7(% For violating Condition No. III., 13. And IV. 9. of Permit WQ0014306 for being unable to document sludge hauling and disposal. $ For violating Condition No. I. 7. of Permit WQ0014306 for failure to have a properly installed staff gauge. do $- . oyo r. For violating Condition No. H. 1. and III. 1. of Permit WQ0014306 for not having an operational tertiary filter. oa For violating Condition No. R.I. of Permit WQ0014306 for the presence of overgrown woody vegetation around the infiltration basin. eo $ TOTAL CIVIL PENALTY ` Enforcement costs 36 TOTAL AMOUNT DUE As required by G. S. 143-215.6A(c), in determining the amount of the penalty I have considered the factors listed in G. S. 143B-282. 1 (b), which are: (1) 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 quantity or quality; (4) The cost of rectifying the damage; (5) The amount of money saved by noncompliance; (6) Whether the violation was committed willfully or intentional; (7) The prior record of the violator in complying or failing to comply with programs over which the Environmental Management Commission has regulatory authority; (8) The cost to the State of the enforcement procedures. r aa- aaa. y 0 (Date) David May, Supervi hington Regional Office Water Quality Regional Operations Section Division of Water Resources E JUSTIFICATION FOR REMISSION REOUE�T Case Number: PC-2024-0003 County: Currituck Assessed Party: Sandler Utilities at Mill Run L L C Permit No,: WQ0014306 Amount Assessed: $8,635.36 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 Healing, 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 apply. 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 Asted in the civil penalty assessment document (b) the violator promptly abated continuing environmental damage resulting from the violation (Le., explain the steps that you took to correct Me 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 firm performing the activities necessary to achieve compliance). aa- f l STATE OF NORTH CAROLINA DEPARTMENT OF ENVIRONMENTAL QUALITY COUNTY OF CURRITUCK F IN THE MATTER OF ASSESSMENT ) WAIVER OF RIGHT TO AN OF CIVIL PENALTIES AGAINST ) ADMINISTRATIVE HEARING AND STIPULATION OF FACTS Sandier Utilities at Mill Run L L C ) Eagle Creek WWTP ) ;i PERMIT NO. WQ0014306 ) CASE NO. PC-2024-0003 i i Having been assessed civil penalties totaling $8,635.36 for violation(s) as set forth in the assessment ?# document of the Division of Water Resources dated February 20, 2024, 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 of Water Resources within thirty (30) days of receipt of the notice of assessment. No new evidence in support of a remission request will be allowed after (30) days from the receipt of the notice of assessment. This the day of , 20}. } SIGNATURE ADDRESS TELEPHONE ATTACHMENT A PERMIT NO: W00014306 FACILITY: Eagle Creek WWTP VIOLATION DATE AREA Sandier Utllitles at MITI Run L L C CASE NUMBER: PC-2024-0003 REGION: Washington COUNTY: Currituck VIOLATION TYPE VIOLATION DESCRIPTION PENALTY AMOUNT 10/302023 End Use -Infiltration Violation detected during Monitoring wells MW1 and MW2 were $0.00 inspection not locked and did not have well ID labels. This is a violation of Condition 11.3 of Permit No. WQD014306 that requires the monitoring wells to comply with the Standards for of Construction for Wells Other Than Water Supply (15A NCAC 02C .0108). 10/302023 Record Keeping Violation detected during No records of sludge hauling or $1,000.00 inspection disposal could be provided by the ORC or Environlink. This is a violation of Condition 111.13 of Permit No. WQ0014306 that requires the permittee to dispose of residuals in a Division -approved manner. It Is also a violation of Condition IV.9 of Permit No. W00014306.that requires the permittee to maintain a record of all residuals removed from the facility. 10/302023 End Use -Infiltration Violation detected during The infiltration basin does not have a $1,000.00 inspection property installed staff gauge. The current one Is not tied to the berm height by a survey and cannot be used to accurately measure freeboard. This is a violation of Condition 1.7 of Permit No. WQ0014306 that requires to permittee to properly install a staff gauge at the infiltration basin within 60 days after the effective date of the permit (August 4, 2021). 10/302023 Treatment Violation detected during The tertiary filter was non-operabonal. $4,000.00 Inspection The ORC stated that it can only be operated in manual mode and did not contain any filter media. He also stated that it has been In this condition since he started operating the system, which is over a year ago. This is a violations of Conditions 11.1 and 111.1 of Permit No. W00014036 that require the permittee to property operate and maintain the facility and to take immediate corrective actions if needed to return the facility to proper operation. ATTACHMENT A Sandier Utllities at MITI Run L L C CASE NUMBER: PC-2024-0003 PERMIT NO: W00014306 REGION: Washington FACILITY: Fagle Creek WWTP COUNTY: Currituck VIOLATION VIOLATION PENALTY DATE AREA TYPE VIOLATION DESCRIPTION AMOUNT 10/30/2023 End Use-Inflltration Violation detected during Woody vegetation was present around $2,500.00 inspection the entire perimeter of the Infiltration basin. This Is a violation of Condition 1.10 of Permit No. WQ0014306 that requires the permittee to remove all woody vegetation from around the Infiltration basin within one year after the effective date of the permit (August 4, 2021). DIVISION OF WATER RESOURCES - CIVIL PENALTY ASSESSMENT Violator: Sandler Utilities at Mill Run LLC Facility Name: Eagle Creek WWTP Permit Number: WO0014306 County: Currituck Case Number: PC-2024-M3 ASSESSMENT FACTORS 1) 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; Significant, failure to operate the tertiary filter results in production of lower quality effluent, which is being disposed of directly into the groundwater system via the infiltration basin. The infiltration basin was not designed to manage 100% of wastewater disposal needs. Inability to accurately determine water levels in the infiltration basin prevents determination of whether the basin is functioning properly. Lack of a properly set staff level gauge in the infiltration basin also prevents determination of whether water levels are such where structural integrity of the basin may be jeopardized, which could place the structure at risk of failure. Overgrown trees and vegetation on the infiltration dike wall places the structure at risk, increasing potential for structural failure. 2) The duration and gravity of the violation; Very Significant, The tertiary filter hasn't worked in more than a year; excessive vegetative growth has been present along the infiltration basin dike walls for greater than a year; the staff gauge has not been accurately set in over a year; sludge accumulation has been documented within the wastewater plant during past site inspections. The wastewater system is designed for primary disposal to be performed via irrigation of reclaimed quality effluent on the golf course. Since effluent hasn't met reclaimed quality standards over an extended period, all flow has been directed to the infiltration basin, which is not designed to be used for continuous year around disposal. Management of the system in its current state of operations is jeopardizing long term viability of the infiltration basin, which is currently serving as the sole means of disposal. 3) The effect on ground or surface water quantity or quality or on air quality; Significant, Groundwater monitoring wells in the vicinity of the infiltration basin have shown repeated exceedances of groundwater quality standards. 4) The cost of rectifying the damage; Significant, The permittee hasn't conducted a required groundwater assessment to document the extent of groundwater quality impacts. Groundwater conditions are unlikely to improve until the wastewater treatment plant is managed and operated in a condition where reclaimed quality effluent is consistently produced. Continued operational practices of sending all effluent to the infiltration basin could compound groundwater restoration efforts. 5 The amount of money saved by noncompliance; Very Significant, The perimeter of the infiltration basin is approximately 1,600' long. The estimated cost for clearing the infiltration dike wall and perimeter by a commercial land management company would be several thousand to tens of thousands of dollars. The estimated cost to repair or replace the tertiary filter would likely be in the tens to hundreds of thousands of dollars range., To accurately set the staff gauge to the low point of the dike wall around the infiltration basin would require some level of survey work to identify the low point. Such would be difficult to complete prior to removal of vegetation along the dike wall. Survey work and a properly set staff gauge is estimated to cost in the thousands of dollars range. Without adequate sludge disposal records to fully document sludge management activities, the money saved related to sludge management and records is unknown. 6) Whether the violation was committed willfully or intentionally; Very Significant, The permittee has had awareness of operational and compliance issues at the facility for an extended period of greater than 12 months with action not taken to correct the tertiary filter, staff gauge, or vegetative growth along the infiltration basin. Although the violations are not considered willful, they are the result of active decisions to not correct issues related to the tertiary filter, vegetative growth along the infiltration basin dike wall, and the staff gauge. The facility's November 17, 2023 NOV response indicates the tertiary filter would not be addressed until facility ownership is transferred. 'n The prior record of the violator in complying or failing to comply with programs over which the Environmental Management Commission has regulatory authority; and Very Significant, The WWTP has been chronically out of compliance. The permittee is under a Judicial Order requiring action to betaken regarding the Eagle Creek sewer collection system since July 2021. Since 2021, the permittee has been issued approximately 21 civil penalty assessments. 8) The cost to the State of the enforcement procedures. $135.36 Date r olvm 9�5 David May, Region u ' or Water Quality Regional Operations Section Washington Regional Office Division of Water Resources, NCDEQ