NC0038377_Withdrawal of letter 2014_20140930

(� DUKE
ENERGY
September 30, 2014
Mr. Jeff Poupart
Water Quality Permitting Section Chief
N.C. Department of Environment and Natural Resources
1611 Mail Service Center
Raleigh, NC 27699 -1611
RECEIVEDIDENRiDIAIC
OCT t; ? 71114
Water Quality
Permittinq Sect;
Via email and UPS
Re: Withdrawal of August 28, 2014 Operating Condition Clarification Letter
Dear Mr. Poupart:
This is to acknowledge receipt of your letter of September 19, 2014, withdrawing
the previous letter of clarification of August 28, 2014.
The letter of August 28, 2014, arose out of several shared concerns between
Duke Energy and DENR. These included the efficient and safe operation of ash basins,
particularly those that were inactive, and an understanding of how Duke Energy will
move towards the closure of ash basins at former coal -fired plants currently undergoing
decommissioning.
In order to excavate ash from the ash basins (which Duke Energy has now been
directed to do by an act of the North Carolina General Assembly), and to expedite
necessary inspections and repairs, Duke Energy must first remove free - standing water.
Given that this water had already undergone treatment, DENR clarified that the
Company's NPDES permits authorized the decanting of free - standing water above the
ash level so long as the removal did not cause exceedances of permit limits. Duke
Energy notes that the amount of free - standing water that would be removed from these
inactive basins would be well within the amount of treated water that the NPDES
permits allow to be discharged on a daily basis.
Before issuing the letter of August 28, 2014, DENR indicated on a number of
occasions that the movement of free - standing water from inactive basins was
permissible under the NPDES permits (so long as effluent limits were met), an
interpretation with which Duke Energy agreed. The letter of August 28, 2014, thus did
not constitute a departure from prior DENR practice nor was it a "new" interpretation,
and we understood that it was simply a written confirmation of what DENR believed its
permits allowed.
Your letter of September 19, 2014, alters this position. Based upon the letter that
we received from Mr. Mark J. Nuhfer, the Chief of Municipal and Industrial NPDES
Section of Region IV of the Environmental Protection Agency, we understand that this

RECEIVEDIDENRVAIR Mr. Jeff Poupart
September 30, 2014
OCT 0 3 2014 Page 2
water Quality
Permittinq Sectinr
departure comes at the request and direction of EPA for the purpose of addressing its
concerns.
Duke Energy will, of course, abide by this change. However, for the reasons set
forth below, we believe that it is imperative for DENR, EPA and Duke Energy to meet to
discuss and resolve the decanting of inactive basins as soon as possible so that closure
and other essential maintenance, inspection and repair work may proceed
expeditiously.
Duke Energy appreciates the acknowledgement in Mr. Nuhfer's letter that
expediting closure of inactive ash basins is a "worthy goal." Removing free - standing
water from inactive basins will expedite Duke Energy's ability to perform any
maintenance work needed to ensure basins continue to perform safely and reliably until
closure, such as slip - sleeving or permanently closing pipes. Finally, Duke Energy has
been directed by the General Assembly of North Carolina to remove ash from the
basins at Riverbend, Asheville, Sutton and Dan River within sixty months. Requiring
free - standing water to remain in these basins will not only delay the process for drying
out the ash that is necessary before any excavation may occur, but as a practical matter
could make meeting this deadline impossible.
Unfortunately, withdrawal of DENR's letter has caused uncertainty surrounding
regulatory requirements for moving forward with essential steps related to both closure
and continued safe operations. Duke Energy is concerned that imposing a formal
permitting process on the movement of free - standing water will substantially delay
taking action on these matters. As such we suggest discussions take place between
EPA, DENR and Duke Energy as soon as possible with a goal of identifying the
regulatory framework that will allow this work to move forward.
Duke Energy knows that DENR understands and appreciates the issues noted
above. Duke Energy is committed to working with DENR and EPA to take the
necessary engineering, scientific and environmentally sound steps to address ash
basins and comply with the mandates of the elected officials of North Carolina.
Sincerely,
i
arry K. Sideris
Senior Vice President
Environmental, Health & Safety

cc: Donald R. van der Vaart, DENR
Thomas A. Reeder, DENR
John Evans, Esp. General Counsel
Mr. Jeff Poupart
September 30, 2014
Page 3