NCG080797_DV-2018-0036 201800272_20180711

ROY COOPER
::Y Governor
MICHAEL S. REGAN
Seo Only
LINDA CULPEPPER
Water Resources Into m,
ENVIRONMENTAL QUALITY Duecla
July 11, 2018
CERTIFIED MAIL7016 2140 0000 4371 1551
RETURN RECEIPT REQUESTED
Southeast Bulk, LLC
Aubrey Edge—Operations Manager
7014 AC Skinner Parkway, Suite 290
Jacksonville, FL 32256
SUBJECT: Assessment of Civil Penalties for Violation of G.S. 143-215.1(a)(1)
Buncombe County
File No. DV-2018-0036
Dear«Owner»,
This letter transmits notice of a civil penalty assessed against Southeast Bulk, LLC in the amount
of$40,000 plus $5,517.48 in enforcement costs. Attached is a copy of the assessment document
explaining this penalty.
This action was taken under the authority vested in me by delegation provided by the Secretary
of the Department of Environmental Quality and the Director of the Division of Water
Resources. Any continuing violation(s)may be the subject of a new enforcement action,
including an additional penalty.
Within thirty days of receipt of this notice, you must do one of the following three items:
1. Submit payment of the penalty:
Payment should be made directly to the order of the Department of Environment and Natural
Resources (do not include waiver form). Payment of the penalty will not foreclose further
enforcement action for any continuing or new violation(s). Please submit payment to the
attention of:
Ms. Gwyn McCullough
DWR PERCS
1617 Mail Service Center
Raleigh,North Carolina 27699-1617
State of North Carolina I Envuonmental Quality I Water Resources
1617 Mail Service Center I Raleigh,North Carolina 27699-1617
919-807-6300 I www waterquality org

OR
2. Submit a written request for remission including 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 to 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)were
wrongfully applied to the detriment of the violator;
(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 has 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 to 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"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:
Please submit this information to the attention of:
Ms. Gwyn McCullough
DWR PERCS
1617 Mail Service Center
Raleigh,North Carolina 27699-1617

OR
3. File a petition for an administrative hearing with the Office of Administrative Hearings:
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 original and
one(1) copy of the petition must be filed with the Office of Administrative Hearings. The petition may
be faxed provided the original and one copy of the document is received in the Office of Administrative
Hearings within five(5)business days following the faxed transmission. The mailing address for the
Office of Administrative Hearings is:
Office of Administrative Hearings
6714 Mail Service Center
Raleigh,NC 27699-6714
Telephone[phone] Facsimile: [phone]
AND
Mail or hand-deliver a copy of the petition to:
Mr. William F. Lane
NCDEQ
Office of General Counsel
1601 Mail Service Center
Raleigh,NC 27699-1601
And to:
Ms. Gwyn McCullough
DWR PERCS
1617 Mail Service Center
Raleigh,North Carolina 27699-1617
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 Ms. Gwyn McCullough at(919) 707-9130 or via email at
gwyn.mccullough@u,ncdenr.gov or Mr. Jeff Poupart at(919) 807-6309.
Sincerely,
Jeff Poupart, Section Chief
Water Quality Permitting Section
Division of Water Resources,NCDEQ
ATTACHMENTS
cc: Asheville Regional Office Supervisor
Enforcement File DV-2018-0036
Central Files

STATE OF NORTH CAROLINA NORTH CAROLINA
DEPARTMENT OF
ENVIRONMENTAL QUALITY
COUNTY OF BUNCOMBE
FILE NO. DV-2018-0036
IN THE MATTER OF )
SOUTHEAST BULK, LLC )
)
) FINDINGS AND DECISION
FOR MAKING AN OUTLET TO THE ) AND ASSESSMENT OF
WATERS OF THE STATE OF ) CIVIL PENALTIES
NORTH CAROLINA )
WITHOUT A PERMIT )
Acting pursuant to delegation provided by the Secretary of the Department of
Environmental Quality, I,Jeffrey Poupart,Environmental Program Manager for the Water Quality
Permitting Section of the Division of Water Resources (DWR), make the following:
I. FINDINGS OF FACT:
A. Southeast Bulk, LLC is a limited liability company legally conducting business in and
under the laws of the State of North Carolina.
B. Southeast Bulk, LLC owns and operates Mountain Energy Home Heat, LLC (Mountain
Energy) located at 288 Lyman Street,Asheville, in Buncombe County.
C. On February 4, 2018, Woodfin Fire Department was dispatched in response to multiple
reports of petroleum odors in the area of 1600 block of Riverside Drive. Upon
investigation, they observed what appeared to be fuel floating on the French Broad River.
Further investigation by the Woodfin responders traced the release upstream to a leaking
20,000-gallon above ground storage tank(AST) on the property owned by Southeast Bulk,
LLC.
D. On February 4, 2018, Asheville Regional Office (ARO) staff responded to the spill and
observed home heating fuel oil discharging from a failing AST, ponding in the secondary
containment area, and discharging through a storm water outfall to the French Broad River.
Further investigation by DWR staff revealed a heavy petroleum sheen approximately 10 to
20 feet wide along the east bank of the French Broad River and extending more than five
miles downstream from the release point. According to Southeast Bulk LLC, the release
was the result of an inoperable shutoff valve for the AST's secondary containment
structure. Estimates of the total volume loss from the AST ranged from 3,000 - 4,000
gallons (ref.: Asheville Fire Department) to 1,096 gallons (ref.: Southeast Bulk, LLC).

Southeast Bulk,LLC
File No:DV-2018-0036
E. Southeast Bulk, LLC has no valid permit for discharge of waste to the waters of the State.
F. On February 4, 2018, DWR staff collected surface water samples from locations
approximately 75 feet downstream of the Mountain Energy storm water outfall. Samples
were analyzed for volatile organic compounds by the DWR Laboratory in Raleigh,North
Carolina. Analytical results indicate the presences of several fuel constituents including
ethylbenzene, isopropylbenzene, naphthalene, n-propylbenzene, p-isopropyltoluene, sec-
butylbenzene, toluene, 1,2,4 -trimethylbenzene, 1,3,5 -trimethylbenzene, xylene (m-
and/or p-), and xylene (o-). The reported toluene concentrations of 390 tg/L and 82 .ig/L
exceeded the applicable surface water standard of 11 pg/L.
G. The French Broad River is classified as a Class B waters of the state within the French
Broad River basin. Best usages are designated as primary recreation and any other best
usage specified by the "C" classification. Class C best usages include aquatic life
propagation and maintenance of biological integrity (including fishing and fish), wildlife,
secondary recreation, agriculture, and any other usage except for primary recreation or as
a source of water supply for drinking, culinary, or food processing purposes
H. Due to the fuel oil release, a recreational-use advisory was issued by the Buncombe
County Health on February 5, 2018. The advisory covered a 20-mile section of the French
Broad River from the Amboy Road Bridge in Asheville, NC to downtown Marshall,NC.
Public health officials recommended people and pets avoid all contact with water in the
advisory area. This included, but was not limited to, activities such as swimming, wading,
fishing and boating until further notice. The advisory was lifted on February 19, 2018.
I. The cost to the State of the enforcement procedures in this matter totaled $4,456.00.
Based upon the above Findings of Fact, I make the following:
II. CONCLUSIONS OF LAW:
A. Southeast Bulk, LLC is a "person" within the meaning of G.S. 143-215.6A
pursuant to G.S. 143-212(4).
B. The French Broad River constitutes waters of the State within the meaning of G.S.
143-215.1 pursuant to G.S. 143-212(6).
C. The product discharged to the land and waters of the State of North Carolina is an
"oil" as defined by § 143-215.77 (8) and a"waste"by § 143-213 (18) (c).
D. The above-cited discharge constituted making an outlet to waters of the State for
purposes of G.S. 143-215.1(a)(1), for which a permit is required by G.S. 143-
215.1.,
E. Southeast Bulk, LLC violated 15A NCAC 02B .0211 (2) and 15A NCAC 02B
.0219 (2)by the discharge of petroleum product(s)to the French Broad River

Southeast Bulk,LLC
File No:DV-2018-0036
resulting in the issuance of a recreational use advisory for 14 days from February
5, 2018 to February 19, 2018.
F. Southeast Bulk, LLC violated 15A NCAC 02B .0211 (19)by impacts from
petroleum product(s) such that toluene concentrations exceeded the Aquatic Life
surface water standard on February 4, 2018.
G. Southeast Bulk, LLC violated G.S. 143-215.1 and 15A NCAC 2B .0211(12)
because the discharge of oil impaired the French Broad River for designated uses.
H. Southeast Bulk, LLC 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 ($25,000.00) per violation 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.
I. Southeast Bulk,LLC maybe 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 apply for or to secure a permit required by G.S. 143-215.1.
J. The State's enforcement costs in this matter may be assessed against Southeast
Bulk, LLC pursuant to G.S. 143-215.3(a)(9) and G.S. 143B-282.1(b)(8).
K. The Environmental Program Manager for the Water Quality Permitting 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 Fact and Conclusions of Law, I make the following:
III. DECISION:
Accordingly, Southeast Bulk, LLC is hereby assessed a civil penalty of:
$ 10,000.00 For discharging waste consisting of a fuel oil product on
February 4, 2018 to a Water of the State of North Carolina
without a permit in accordance with G.S. 143-215.1 (a).
$ 2,000.00 For violation of Title 15A NCAC 02B .0211(19) for
impacts from petroleum product(s) such that toluene
concentrations exceeded the Aquatic Life surface water
standard on February 4, 2018.

Southeast Bulk,LLC
File No:DV-2018-0036
$_28,000.00 For 14 violations of Title 15A NCAC 02B .0211(2) for
petroleum product(s) entering the French Broad River
resulting in the issuance of a recreational use advisory for
14 days, from February 5, 2018 to February 19, 2018.
$ 40,000.00 TOTAL CIVIL PENALTY
$ 5,517.48 Enforcement costs
$ 45,517.48 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 water quantity or quality or effecting 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;
(8) The cost to the State of the enforcement procedures.
�/I O i�
(Date) effrey Poupart
Water Quality Section Chief
Division of Water Resource