NCG080969_NOI Review Staff Notes_20180717

N.C. Division of Energy, Mineral and Land Resources
General Permit NOI Review — NCG080969
Southeast Bulk, LLC
Haywood County
• ARO response to request for comments — Isaiah conducted a site visit and found issues with
containment, trench drains, tanks not in containment, etc. Recommended not issuing the permit.
Emails to Isaiah to discuss the possibility of issuing the permit with an augmented COC to assure that
items are done.
• Discussions with other staff, etc. found that the company had recently received NOV's from DWR
and DEMLR at their location in Asheville (NCG080797).
• Questions about coverage for the Waynesville facility — this site. This location had a previous permit
(NCG080151) with Morgan Energy. Facility did not respond or pay fees so permit was rescinded in
2012. No current coverage. Was material taken from Asheville site to this location?
• 7/3/2018 - Talked with DWR (Zan Price and Brett Laverly) about their NOV for Asheville facility — Feb
2018. NOV for release of Home heating oil. Facility also dealing with DWM with issues — corrective
action for UST, contaminated soils from past releases, etc. Still working on cleanup. Facility
indicated they would not be distributing fuel from the Asheville site any longer. DWR will pursue
enforcement for release to River. Noted that facility wasn't aware of drain in containment area.
Had been covered with debris. DWR sent copies of their NOV and other information for the
Asheville facility.
• 7/3/2018 - Talked with Shawna about Asheville facility — we issued an NOV in June 2018. Appears
that eh facility was not following their stormwater permit for a while. Permitee hired consultant
and now has SWP3 for the Asheville facility. Still unsure where they took the material removed
from the tanks at Asheville. She thinks it may have been taken to Waynesville — could be another
location that may need a permit also. Talked with Shawna about the possibility of issuing a permit
with conditions to correct things Isaiah found. She will review letter if we do this. Gave me contact
for company she has worked with — Skip Hutton.
• 7/3/2018 — Talked with Skip Hutton about issues that our site inspection found. He noted that
larger container in the containment area are empty and that containment has been found sufficient
by consultant? Appears some tanks won't be used, are locked, etc. Also noted that containment
walls had been sealed previously and asked for pictures if we had them of problem areas. Skip
indicated he would be at the site next week (July 10 -12) and could meet staff on site to discuss.
Also discussed Asheville facility — Bulk fuel activities shut down. Some tanks capped and sealed after
being emptied. Lube oil tanks with smaller amount of product will remain in operation so they will
need to maintain permit at Asheville facility. Sent an email to Mr. Hutton noting the issues that
were found in the first site visit.
• Emails/calls to Shawna — she will meet with Mr. Hutton on site.
• 7/11/2018 — talked with Shawna. She had been onsite and feels that things have been addressed
and the permit can be issued. Containment should be sufficient. They had consultant do
calculations and they are only using 6 or 7 tanks in the area, not all of them so the capacity will be
limited. Black pipe noted in first inspection isn't their pipe. Shawna make recommendation for
monitoring their outfall back upstream to avoid the submerged pipe, possible at the last chamber in
the o/w separator. Can work with them on future site visits. Trench drains — covers had been
welded shut but they opened and cleaned and took sediment offsite. All flow is to the o/w
separator now and there should be no bypass. Drums noted in first inspection have been removed.

Areas noted with potential leaks where pipes go through containment wall — these are old lube
pipes that are no longer used and there will be no storage in the well house so no industrial activity.
Containment walls sealed in March. Mr. Hutton will send an email outlining response to our
previous email on the secondary containment capacity — Shawna forwarded on 7/17/2018. Cover
letter addresses response to all items raised in first site visit.