2017-1-19 Seascape Enforcement DRAFT

Wetlands Branch — Attachment Checklist
Streams - Wetlands - Buffers - 401 WQC -Enforcement Cases
*Please send a copy of the below items to staff of the 401 & Buffer Permitting Unit*
Regional Office
WA)(rck
Case No.
107- 00(77
001
Owner p 1 /
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Facility)pAjmo u
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Case Prepared byUtb /n RO Supervisor �lRdf.gjlrl IIs,'DEMLR or.Local Program doing a'caseP;,.
Attachments Needed for RO Case File
R
Check (� )
1. Enforcement Recommendation Memo
R
V
2. Findings & Decisions Document
R
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3. Photographs (in COLOR)
R
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4&11M
4. Vicinity / Site Map with Photo Locations
R
It
5. DWR NOV(s) and 1111lM.
R
11
6. Any Response to DWR NOV
•
t
7. Proof of Ownership / Permittee
•
it
8. Proof of Corporation
•
It
9. USACE or CAMA Correspondences
•
It
10. 401 WQC Approval or Buffer Authorization Letter, PCN
A
11
11. Chain of Custody, Lab data ...
B
IVA
12. E&SC Plan Approval Letter
C
N'14
13. Financial Responsibility / Ownership Form for E&SC Plan
C
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46 nRy Re6P.RGe tG IDFMI RA , Gal o...,.Fam nine
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KEY: R -Required for all Violations
• - If applicable, required for all Violations
A - Required ONLY for 401 WQC or Buffer Authorization Condition Violations
B - Required ONLY for WQ Standards, Turbidity, DO, pH, etc Violations
C - Required ONLY if establishing Financial Responsible Party
'If DEMLR/Local Program is doing a case, coordination will need to occur between DWR and DEMLR.

Attachments Needed
Definitions
1. Enforcement
Memo addressed to Wetlands Branch from the RO Supervisor and Staff that recommends
Recommendation
enforcement. This memo also summarizes the history of the site including any inspections, NOVs,
Memo
Responses to NOVs, restoration, and current status. It also states whether the assessed entity(ies)
have any previous civil penalty assessments against them and calculates the enforcement costs.
2. Findings & Decisions
Findings & Decisions Document includes the (1) Findings of Fact; (II) Conclusions of Law; and (III)
Document
Decision. Draft this document using provided templates. Also, email to the 401 & BUFFER
PERMITTING Unit so that they can make any necessary changes [e-mail]
Documents the scope of the impacts. Dates and any written description should be included to
3. Photographs
document when and where the photos were taken (It is recommended to copy the digital photos into
(in COLOR)
Word or Power Point to add dates and descriptions). When possible, take reference photos for
comparison.
Vicinity Map indicates the landscape position of the site. This map should also depict where the photos
4. Vicinity / Site Map
were taken and the direction of the photos. This is used to support the assessment and imperative to
with Photo Locations
staff unable to go to the site. (When the site is large, or has impacts at many different locations within
the site, it may be necessary to have multiple maps and/or sketches to properly depict both the general
location of the site and the exact location of the pictures.)
5. DWR NOV(s)
DWR NOV illustrates and details the impacts and violations on the site. This document is essential to
document the violations observed in the Findings & Decisions document (use templates!)
6. Any Response to
Any Response to the DWR NOV will be considered in the case assessment process and must be
DWR NOV
included in the packet. This may include written letters, emails, phone calls...
This documentation is needed to confirm that the appropriate "person" is being assessed, the owner of
7. Proof of Ownership /
the property. This can be a printout from Online Parcel or GIS info, or a copy of the most recent deed.
*Please
note this may be different than the Financially Responsible Party indicated on an E&SC Plan
Permittee
submitted to DEMLR. ** **Please also note that the 401 WQC may be issued t4 someone other than
the owner and thus the permittee may not be the owner. **
This confirms correct name of the Limited Liability Corporation (LLC), Company, Registered Agent,
8. Proof of Corporation
address, etc. Refer to the Secretary of State website: hfr)://www.secretary.state.nc.us/corporations/ or
appropriate State of Incorporation.
9. USACE or CAMA
Has the USACE been to the site? Any USACE letters claiming jurisdictional waters, addressing
Correspondences
violations, Cease and Desist Letters, any other communication, etc. must be included in the packet.
10. 401 or Buffer
401 or Buffer Approval Letter demonstrates that the person was covered under a 401 WQC or had
Approval Letter
obtained Authorization for Buffer Impacts. The PCN/Application may also be needed for
documentation.
11. Chain of Custody,
Chain of Custody, Lab Data, and a map w/ sample locations depicted are very important. This
Lab data
information is necessary when demonstrating Water Quality Standard Violations. Example: Turbidity,
...
DO, pH, etc.
12. E&SC Plan Approval
Division of Land Resources (DEMLR) or Local Program Approval Letter demonstrates that the person
Letter
was covered under an NPDES Permit NCGO10000.
This is a DEMLR document and can be found in the DEMLR project file. The permittee for the
13. Financial
NCGO10000 permit is `The person who signed as the financially responsible party on the
Responsibility /
Erosion and Sedimentation Control Plan. In most cases, this will be the same as the owner, but not
Ownership Form for
always. **Please be advised that a NCG010000 permit is only issued forprojects greater than 1 acre,
E&SC Plan
however some local programs require an E&SC Plan for projects less than 1 acre. Total disturbed area
can be confirmed on this form as well.—
14. DEMLR/Local
Copies of these inspection reports help confirm that land disturbance has commenced, thereby
Program Inspection
confirming that the NPDES NCGO10000 is in effect. Violations indicated on the inspection forms help
Report and/or NOV
confirm violations of the NPDES Permit NCG010000. NOVs confirm violations of the NPDES Permit
NCGO10000 and confirm encounters with DENR staff.
15. Any Response to
Any Response to the DEMLR/Local Program NOV will be considered in the case assessment process
DEMLR/Local
and must be included in the packet.
Program NOV

Wilmington Regional Office
Division of Water Resources
January 19, 2017
Memorandum:
TO: Karen Higgins — 401 & Buffer Permitting Branch Supervisor
FROM: Jim Gregson - DWR Supervisor
Wilmington Regional Office
SUBJECT: Enforcement Recommendation
Seascape at Holden Plantation, LLC
Seascape at Holden Plantation Property Owner's Association, Inc.
Seascape at Holden Beach
Brunswick County, NC
Please initiate a civil penalty assessment against the above named entities to compel compliance
with North Carolina water quality regulations.
Division of Water Resources (DWR) investigations and file reviews of the Seascape at Holden
Beach site have revealed that the installation of perforated pipes that have resulted in an adverse
impact upon the hydrology of the wetlands and ponds onsite. Specifically, a 48 -inch perforated
pipe has been installed which has lowered the groundwater table within its area of influence.
These wetland impacts have resulted in a violation of Title 15A North Carolina Administrative
Code (NCAC) 02B .0231(b)(5).
Site investigations and correspondences began in 2009 with Seascape at Holden Plantation, LLC.
Seascape at Holden Plantation, LLC has had ample time to make the necessary corrections on the
site to achieve compliance. The current owner of the impacted area is Seascape at Holden
Plantation Property Owners Association, Inc. DWR has sent multiple Notices of Violation and
Recommendations for Enforcement and has been unable to get the responsible party to make the
necessary corrections. DWR believes that a civil penalty assessment is warranted to initiate and
complete the work that is needed to resolve the ongoing violations.
The wetland impacts have been ongoing for almost 8 years. To date, DWR has not received a
wetland restoration plan that addresses the approximate 2 acres of wetland impacts and the
violations have not been resolved.
Enforcement Recommendation Memo Page 1 of 5

DWR has a record of past violations for Seascape at Holden Plantation, LLC or Seascape at
Holden Plantation Property Owner's Association, Inc.
Enforcement Costs:
Chad Coburn 4 hours @ $33.76 $135.04
Mileage 84 miles @ $0.50/mile $42.00
Central Office Review and Processing $100.00
Total $277.04
DWR (Formerly DWQ) Timeline of Events
9/21/1999 DWQ issued the original state stormwater permit for Seascape at Holden Beach to
Seascape at Holden Plantation, LLC as Low Density. No piping was shown on
the plans in the vicinity of the Lower Pond.
3/8/2000 In response to the permittee's request, DWQ issued a permit modification that
made an exception to the no piping condition for "That minimum amount needed
associated with the outlet structures of the wetland ponds for the purpose of flood
control as shown on the approved plan."
9/26/2000 Applied Resource Management (ARM) completed a hydro -geological
investigation at the site. The stated goals of the investigation were as follows:
"(1) Determine the water volume requirements for filling the ponds during the dry
seasons; (2) Identify and test a viable water resource in the vicinity of the on-site
ponds. Testing will include availability and quantity of good quality water which
will be utilized for filling the ponds during the dry seasons of the year; and (3)
Determine the impact of installing perforated piping along the pond side of Lots
177-183, the wetlands side of Lots 31 and 32." (Lots 31 and 32 are located below
the western end of the Lower Pond.)
The 9/26/2000 ARM Report includes the following on page 11 under the
Recommendations and Storm Water Piping Requirements: "As presented,
installation of perforated storm sewer pipes along the banks of either pond will
serve to dewater the ponds at a rate of at least six gallons per linear foot of pipe
installed six feet into the groundwater table. Some drying of adjacent lots can be
expected, but the effect at greater than 25 feet from the storm drain centerline
would be negligible..."
4/23/2001 In response to the permittee's request, DWQ issued second permit modification
that contained the same permit language as the previous permit allowing for "That
minimum amount needed associated with the outlet structures of the wetland
ponds for the purpose of flood control as shown on the approved plan" (emphasis
added). The approved plan depicts two outlet structures from the amenity pond
located at its east and west ends. Separate drain lines (oriented in an approximate
north -south orientation) connect each outlet structure to the marina basin. The
plan that specifies 48 -inch, reinforced concrete pipe (RCP) be used for each drain
line from both east and west pond outlet structures to Versailles Boulevard. From
Enforcement Recommendation Memo Page 2 of 5

Versailles Boulevard, the plan specifies 48 -inch perforated piping be used for
both drain lines down to the Marina.
4/2/2008 In response to the permittee's request, DWQ issued'the third and most recent
permit modification; it does not include the language that allows piping for flood
control. On the western side of the Lower Pond, the approved plan included in
the current permit shows that the first 100 feet of what was originally to be 48 -
inch RCP was modified to be high-density polyethylene (HDPE). Also, the
western drain line section immediately after the HDPE down to Versailles was
changed from RCP to perforated pipe. The remainder of the piping below the
Lower Pond is shown exactly as before, including the specification for RCP from
the eastern lower pond outlet structure to Versailles Boulevard.
DWQ now knows through field verification and through admission from the
developer that what is shown on the plans to be RCP on the eastern side of the
Lower Pond is actually perforated pipe. This is in conflict with the approved site
plan in the existing permit. The 100 -foot section of pipe leading from the western
pond outlet structure has been confirmed to be HDPE and is in compliance with
the approved site plan.
6/4/2009 DWQ staff members David Cox, Chad Coburn and Chris Baker conducted a site
visit of the subject site.
2/25/2010 Chris Baker of DWQ sent an email to Georgette Scott of DWQ. In the email
Chris Baker used observations gathered during the June 4, 2009, site visit to
respond to questions raised by a Seascape resident. In the email, Mr. Baker stated
that they "walked the entire site as it relates to the approved stormwater permit
and found the site to meet all criteria to be considered compliant." However,
during that visit the pipe on the eastern side of the Lower Pond, discussed above,
was not examined by DWQ staff. This is typical as DWQ staff members do not
enter confined spaces for safety reasons. Staff members rely upon Designer's
Certifications to confirm that such infrastructure has been installed per the
approved plan.
3/19/2010 DWQ Wilmington Regional Office issued a Notice of Violation to Seascape at
Holden Plantation, LLC citing a wetlands standard violation.
4/16/2010 DWQ Wilmington Regional Office received four separate Designer's
Certifications with Professional Engineer's seals from Mr. Perry Davis for
stormwater infrastructure at Seascape at Holden Plantation.
8/15/2010 DWQ was provided with the results of a well monitoring study initiated in June
2010 by Noelle Winstead of Cape Fear Engineering on behalf of Seascape at
Holden Plantation, LLC in response to the 3/19/2010 Notice of Violation. The
conclusions of the report states, "Although the monitoring well readings are not
conclusive, it is possible the perforated outlet pipe at the eastern end of the lower
pond may intercept an indeterminate amount of groundwater and direct it away
from the pond. Because water naturally moves through the ground towards the
nearest outlet, the perforated outlet pipe may be affecting the maximum elevation
of the water level in the pond." In addition, the data included in the report shows
Enforcement Recommendation Memo Page 3 of 5

a steady groundwater level in well 43 in the area of the eastern section of
perforated piping between 8 to 8.5 feet below the surface.
2/11/2011 DWQ forwarded the June 2010 results from Cape Fear Engineering and the
9/26/2000 ARM Report to Nathaniel (Nat) Wilson of the Division of Water
Resources for his evaluation of the data and conclusions. Mr. Wilson transmitted
his evaluation of the reports in an email to Matt Matthews, DWQ Surface Water
Protection Chief. Mr. Wilson indicated that the conclusions in the ARM report
regarding the drainage capabilities of the 48 -inch perforated pipes are in error.
The data collected from this study was not used properly and therefore, the
hydraulic parameters calculated are incorrect. The draining influence of the
perforated piping (25 feet) is greatly understated in the report. A more correct
measurement of the drainage influence of the perforated piping is on the order of
750 feet from the centerline of the pipes. By using the correct hydraulic
parameters, the groundwater table would actually be lowered to approximately 8._
feet below the surface in the immediate vicinity of the perforated piping system.
Note that this corresponds to the groundwater level observed by Noelle Winstead
in well 93 (8 to 8.5 feet below the surface).
7/2011 DWQ proposed a hydrologic study that would produce a water level contour map
that would provide further technical support for the contention that the combined
flood control /stormwater system is dewatering the Lower Pond and associated
wetlands. However, the proposed study was not performed and has been placed
on hold indefinitely.
12/21/2011 DWQ Wilmington Regional Office issued a follow up letter to the 2010 Notice of
Violation. This letter stated that one segment of the stormwater system as
constructed does not match the approved site plan associated with the most
recently approved permit plan. The letter also stated that the DWQ has evidence
that the combined flood control/stormwater system is dewatering the Lower Pond
and wetlands. The letter directed the permittee to address the discrepancies
between the approved plan and the existing onsite system. The letter requests that
a plan to replace perforated pipe with RCP be submitted by January 31, 2012 and
that a final solution must be in place on site by August 1, 2012.
1/11/2012 An information request was made by Noelle Winstead under the North Carolina
Public Information Act, Chapter 132 for all documents, letters, memoranda,
reports, emails, etc. regarding the stormwater system for the site. The permittee
was granted an extension of the plan submittal date to May 23, 2012.
6/15/2012 A response was received from the perrnittee's legal counsel after review of the
documents received via the public information request. The response stated that,
"In sum, the Notice of Violation should never have been issued, and no violation
of any kind exists." The permittee then submitted an application for a permit plan
revision to change the type of pipe on the plan to the perforated pipe that is
actually installed.
7/3/2012 DWQ returned the application submitted to revise the plans since the December
2011 letter had directed the permittee to address the underlying issue of the
dewatering of the Lower Pond and wetlands on the site.
Enforcement Recommendation Memo Page 4 of 5

7/5/2013 On or about July 5, 2013, a Complaint for Injunctive Relief was filed in Brunswick
County Superior Court for the wetland violations on the subject site. On or about
June 3, 2015, due to complexities of the case, the Attorney General's Office filed a
Rule 41 Dismissal of the Injunction with an option to refile if needed.
10/26/2015 DWR conducted a follow-up site visit and observed no indication that the
perforated pipes have been removed; therefore, the impacts to the wetlands were
ongoing;
11/10/2015 DWR Wilmington Regional Office issued a Notice of Violation and
Recommendation for Enforcement (hereby known as NOVRE) to Seascape at
Holden Plantation, LLC. This NOVRE summarized the ongoing violations
requested the wetland restoration plan be submitted. The NOVRE was delivered
to Elaine Jordan (counsel) by Brunswick County Sheriff on February 22, 2016.
7/16/2016 DWR Wilmington Regional Office issued the November 10, 2015 NOVRE to
Seascape at Holden Plantation POA, Inc. DWR records indicate that the NOVRE
was delivered to WASLAW, LLC (counsel) on July 8, 2016.
The wetland impacts have been ongoing for almost 8 years. To date, DWR has not received a
wetland restoration plan that addresses the approximate 2 acres of wetland impacts and the
violations have not been resolved.
Enforcement Recommendation Memo Page 5 of 5

STATE OF NORTH CAROLINA
COUNTY OF BRUNSWICK
IN THE MATTER OF:
Seascape at Holden Plantation, LLC and
Seascape at Holden Plantation Property Owner's
Association, Inc.
FOR VIOLATIONS OF:
15A NCAC 02B .0231 (b) (5)
Acting pursuant to North Carolina General Statutes
Jeffrey O. Poupart, of the Division of Water Reso
I. FINDING OF FACT
A. Seascape at Holden Plantation, LEI
and was the previoud'owner of the
Brunswick County,
B. Seascape at Holden Plantatf
the lawspf,t e'," to of Nort,'
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NORTH CAROLINA DEPARTMENT OF
ENVIRONMENTAL QUALITY
CASE NO. WT -2017-0001
FINDINGS AND DECISION
AN'6%SSESSMENT OF
tIL PENALTIES
make
G.S.) 143-215.6A, I,
lially responsibly for developing
as Seascape at 1361den Beach in
organized and existing under
OwnerV Association, Inc. is the current
within the Seascape at Holden Beach
-1vard and Versailles Boulevard which
6ty ponds on the stormwater plans and
a Property Owner's Association, Inc. is organized
the State of North Carolina.
E. Droit' of Waty�2esources (hereby known as DWR), formerly the Division of
,
Water %(ality i'reby known as DWQ), conducted investigations and file
reviews bih on June 4, 2009, of the Seascape at Holden Beach development
site whichi�aled the installation of perforated pipes that have impacted the
hydrology of approximately 2 acres of wetlands including the Upper and Lower
amenity ponds.
F. Title 15A North Carolina Administrative Code (hereby known as NCAC) 02B
.0231(b)(5) requires that hydrological conditions necessary to support the
biological and physical characteristics naturally present in wetlands shall be
protected to prevent adverse impacts on: C. The chemical, nutrient and dissolved

Seascape at Holden Plantation, LLC
Seascape at Holden Plantation Property Owner's Association, Inc.
Brunswick County
Page 2 of 4
oxygen regime of the wetland; D. The movement of aquatic fauna; and F. Water
levels or elevations.
G. On March 19, 2010, the DWQ Wilmington Regional Office issued a Notice of
Violation for violations of Title 15A NCAC 02B .0231 (b)(5). DWR (DWQ) has
received various responses and has had several communications with
representatives of the involved parties.
H. On or about July 5, 2013, a Complaint for Injunctive Relief was filed in
Brunswick County Superior Court for the wetland violations on the subject site.
On or about June 3, 2015, due to complexities of the case, the Attorney General's
Office filed a Rule 41 Dismissal of the Injunction with an option to refile if
needed.
I. On October 26, 2015, DWR conducted a follow-up site and observed no
indication that the perforated pipes have been removed; therefore, the impacts to
the wetlands were ongoing.
J. On November 10, 2015, DWR Wilmington Regional Office issued a Notice of
Violation and Recommendation for Enforcement (hereby known as NOVRE) to
Seascape at Holden Plantation, LLC. This NOVRE summarized the ongoing
violations requested the wetland restoration plan be submitted. The NOVRE was
delivered to Elaine Jordan (counsel) by Brunswick County Sheriff on February
22, 2016.
K. On July 16, 2016, DWR Wilmington Regional Office issued the November 10,
2015 NOVRE to Seascape at Holden Plantation POA, Inc. DWR records indicate
that the NOVRE was delivered to WASLAW, LLC (1992) on July 8, 2016.
L. The wetland impacts have been ongoing for over almost 8 years. To date, DWR
has not received a wetland restoration plan that addresses the approximate 2 acres
of wetland impacts and the violations have not been resolved.
M. The impacts occurred to wetlands, Class WL waters within the Lumber River
Basin.
N. The cost to the State of the enforcement procedures in this matter totaled $177.04

Seascape at Holden Plantation, LLC
Seascape at Holden Plantation Property Owner's Association, Inc.
Brunswick County
Page 3 of 4
Based upon the above Finding of Fact, I make the following:
II. CONCLUSION OF LAW
A. Seascape at Holden Plantation, LLC is a "person" within the meaning of G.S.
143-215.6A pursuant to G.S. 143-212 (4).
B. Seascape at Holden Plantation Property Owner's Association, Inc. is a "person"
within the meaning of G.S. 143-215.6A pursuant to G.S. 143-212 (4).
C. The wetlands located at the site constitute waters of the State within the meaning
of G.S. 143-212 (6).
D. Seascape at Holden Plantation, LLC and Seascape at Holden Plantation Property
Owner's Association, Inc. violated Title 15A NCAC 02B .0231 (b) (5) by impacts
to approximately 2 acres of wetlands from the installation of perforated pipes
which have resulted in an adverse impact on the hydrology for more than a 5 -year
period.
E. Seascape at Holden Plantation, LLC and Seascape at Holden Plantation Property
Owner's Association, Inc. may be assessed civil penalties in this matter pursuant
to G.S. 143-215.6A (a)(1), which provides that a civil penalty of not more than
twenty-five thousand dollars ($25,000) per violation per day may be assessed
against a person who violates any classification, standard, limitation, or
management practice established pursuant to G.S. 143-214.1, 143-214.2, or 143-
215.
F. Seascape at Holden Plantation, LLC and Seascape at Holden Plantation Property
Owner's Association, Inc. may be assessed civil penalties pursuant to G.S. 143-
215.6A (a)(6) which provides that a civil penalty of not more than twenty-five
thousand dollars ($25,000.00) per violation per day may be assessed against a
person who violates a rule of the Commission implementing this Part, Part 2A of
this Article, or G.S. 143-355(k).
G. The State's enforcement cost in this matter may be assessed against Seascape at
Holden Plantation, LLC and Seascape at Holden Plantation Property Owner's
Association, Inc. pursuant to G.S. 143-215.3 (a)(9) and G.S. 14313-282.1 (b)(8).
H. Jeffrey O. Poupart 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.

Seascape at Holden Plantation, LLC
Seascape at Holden Plantation Property Owner's Association, Inc.
Brunswick County
Page 4 of 4
Based upon the above Findings of Fact and Conclusions of Law, I make the following:
I11. DECISION
Accordingly, Seascape at Holden Plantation, LLC and Seascape at Holden Plantation Property
Owner's Association, Inc. are hereby assessed, jointly and severally, a civil penalty of:
for violations of Title 15A NCAC 02B .0231 (b) (5) by impacts to
approximately 2 acres of wetlands from the installation of
perforated pipes which have resulted in an adverse impact on the
hydrology for more than a 5 -year period.
TOTAL CIVIL PENALTY, authorized by G. S. 143-215.6A
$ Enforcement Cost
$ TOTAL AMOUNT DUE
As required by G.S. 143-215.6A(c), in determining the amount of penalty, I considered the
factors set out in G. S. 14313-282.1(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 violations;
(2) The duration and gravity of the violations;
(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 violations were 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
Date Jeffrey O. Poupart
Division of Water Resources