20080868 Ver 2_State Auditor Request_20090126

Beth A. Wood, CPA
State Auditor
January 26, 2009
STATE OF NORTH CAROLINA
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roseph DeBragga, Internal. Audit
Department of Envirow lent and Natural Resources
512 North Salisbury Street
Raleigh, North Carolina 27699
Re. pCS Mine in Aurora, NC
2 S. Salisbury Street
20601 Mail Service Center
Raleigh, NC 27699-0601
Telephone: [phone]
Fax: [phone]
Internet
httP:I/vwww.ncauditor.net
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Dear Mr. DeBragga: /I 00?0' ?'f*?A'T
use nof mis The Office of the State Auditor has received an allegation
of criminal tatutes/administrativePubliC
funds; unprofessional conduct, and/or possible violation
policy, which has been determined by this agency best to be addressseod b?n?y office for
me a
whatever action you deem appropriate., ot cIf an hoose nquixy ot is
pursue it a brief statement to that effect,
brief statement of your action, Y
within 30 (thirty) days of the receipt of this referral letter and its attachments.
The reason(s) for your decision need not be submitted,
hotline, in accoxdancerwith N.C G S h147-
efficiency and efficacy of our fraud, waste, and abuse
64.6.(c)(16). Your receipt of this complaint and response regarding any action taken or not taken
by your office are appreciated.
Respectively yours,
`v>t' Frank L. Perry, Director
U Investigative Division
Office of the State Auditor
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OSA investigator: Lawen Becote 919 807-7512
Summary of Allegations
Allegation: Improper health and environmental operations at PCS mine in
Aurora,NC
• Potential health and environmental impacts of the PCS mine in Beaufort County
William H. Schlesinger, dean of the Nicholas School of the Environment and Earth
Sciences at Duke University warned against letting PCS expand their mining
operations
• Schlesinger stated that "Long after the wetlands are gone, the phosphate is depleted
and the profits have moved away to the stockholders of PCS Phosphate, our coastal
ecosystems will be impoverished"
• Questions have been raised about the water quality in this area, also they've alleged
test results are being falsified
• Virginia-Pilot Newspaper on November 3, 2008, wrote a story questioning whether
EPA water tests axe trustworthy
o "Technically, EPA has no standard that pertains to well water"
• EPA Report: "The metals detected in the ground water [near the PCS mine at
Aurora] corresponded to those elements (arsenic, cadrxuum, and zinc) detected at high
concentrations in the [mine's] unlined waste ponds and that over a decade ago, both
the EPA and NC State officials knew there was a growing water quality problem
related to the mine.

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