WQ0018087_Final Permit_20060828

a� WA� Michael F. Easley, Governor
p William G. Ross Jr., Secretary
TNorth Carolina Department of Environment and Natural Resources
Alan W. Klimek, P.E., Director
4 C Division of Water Quality
August 28, 2006
PENNY MAHONEY
DAK Americas LLC
3500 Daniels Road, ME
Leland, NC 28451
Subjeet: Permit No. WQ0018087
DAK Americas, LLC
Cape Fear Site
Surface Disposal of Residual Solids
(503 exempt)
Brunswick County
Dear Ms. Mahoney:
In accordance with your minor modification request received August 11, 2006: we are forwarding
herewith a Permit No. WQ0018087, dated August 28, 2006, to DAK Americas, LLC for the subject
residuals land application program. It is our understanding that the change in freeboard requirement will
resolve the contested case filed August 3, 2006.
This permit shall be effective from the date of issuance until July 31, 2011, shall void permit No.
WQ0018087 dated June 30, 2006, and shall be subject to the conditions and limitations as specified
therein. Make note of this permit's expiration date and the fact that a permit renewal application is due to
the Division of Water Quality (Division) no later than six months prior to that date (i.e., see Condition VI.
8.), as the Division does not send reminders to apply for permit renewal.
Please take the time to review this permit thoroughly. Pay particular attention to the
monitoring requirements in this permit as some of the conditions contained therein may have been added
or changed since the last issuance of this permit. Of special interest are the following:
• Condition 11.4. — Note that a two -foot freeboard requirement for the 12-acre lagoon has
been removed and the requirement has been added to the Overflow Pond.
• Condition II.5. —Note that a Standard Operating Procedure for the maintenance of the 12-
acre lagoon drains is required.
• Condition III.5. — Note that a requirement to record dates of disposal from the adjacent
mining operation has been removed.
• Condition 11L5. — Note that a requirement to record freeboard in the 12-acre lagoon has
been removed and the requirement has been added to the Overflow Pond.
Aquifer Protection Section 1636 Mail Service Center Raleigh, NC 27699-1636
Internet: htt ://1)2o.enr.state.nC,us 2728 Capital Boulevard Raleigh, NC 27604
An Equal Opportunity/Affirmative Action Employer - 50% Recycled110% Post Consumer Paper
NoLCaroiina
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Phone [phone] Customer Service
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If any parts, requirements, and/or limitations contained in this permit are unacceptable, you have
the right to request an adjudicatory hearing upon written request within 30 days following receipt of this
permit. This request shall be in the from of a written petition, conforming to Chapter 150B of the North
Carolina General Statutes and filed with the Office of Administrative Hearings at 6714 Mail Service
Center, Raleigh, North Carolina 27699-6714. Unless such demands are made, this permit shall be final
and binding.
If you need any additional information concerning this matter, please contact Matthew Fleahman
by telephone [phone], or via e-mail at [e-mail].
R
cc: Brunswick County Health Department
Wilmington Regional Office - Aquifer Protection Section
Technical Assistance and Certification Unit
APS Central Files
APS Files
Jane Oliver, Attorney General's Office
or Alan W. Klimek, P.E.
2

NORTH CAROLINA
ENVIRONMENTAL MANAGEMENT COMMISSION
DEPARTMENT OF ENVIRONMENT AND NATURAL RESOURCES
It71.0.no[0211
SURFACE DISPOSAL OF RESIDUAL SOLIDS (503 EXEMPT) PERMIT
In accordance with the provisions of Article 21 of Chapter 143, General Statutes of North Carolina as
amended, and other applicable Laws, Rules, and Regulations
PERMISSION IS HEREBY GRANTED TO
DAK Americas, LLC
Brunswick County
FOR THE
operation of a wastewater residuals Iand application program consisting of a 12 acre sludge lagoon for the
application of 1,500 dry tons per year of residuals from the sources listed in Condition IT 15,,.with no
discharge of wastes to the surface waters, pursuant to the permit application package received on
February 25, 2000 and in conformity with the project plan, specifications, and other supporting data
subsequently filed and approved by the Department of Environment and Natural Resources and
considered a part of this permit.
This shall be effective from the date of issuance until July 31, 2011 and shall be subject to the following
specified conditions and limitations:
L PERFORMANCE STANDARDS
1. The surface disposal unit shall be effectively maintained and operated as a non -discharge
system to prevent the discharge of any wastes resulting from the operation of the unit.
2. The issuance of this permit shall not relieve the Permittee of the responsibility for damages to
surface waters or groundwater resulting from the operation of the surface disposal unit.
In the event that the surface disposal unit is not operated satisfactorily, including the creation
of nuisance conditions, the Permittee shall cease disposing of residuals in the unit as
appropriate, contact the Water Quality Section of the Division of Water Quality's (Division)
Wilmington Regional Office, and take any immediate corrective actions as may be required
by the Division.
4. No residuals other than those generated by the following residuals source -generating facilities
shall be approved for disposal in the surface disposal unit in accordance with this permit:

Source _ _ _ County Permit Number Maximum Dry Tons per Year
DAK Americas, LLC. Cape Fear Site
Brunswick NCO000663 1,500
5. Only residuals that are non -hazardous under the Resource Conservation and Recovery Act
(RCRA) shall be disposed of in the surface disposal unit.
6. The pollutant concentrations in the residuals that will be disposed of in the surface disposal
unit shall not exceed the following Ceiling Concentrations (i.e., dry weight basis):
Parameter
Ceiling Concentration
(milli rams per kilogram)
Arsenic
30
Chromium
200
Nickel
210
7. Level gauges shall be maintained at all times to monitor freeboard levels in the 12-acre
lagoon.
8. The following buffer zones shall be maintained:
a. 400 feet between an active surface disposal unit and any habitable residence;
b. 100 feet between an active surface disposal unit and any public or private water supply
source, all streams classified as WS or B, waters classified as SA or SB and any Class I
or Class 11 impounded reservoir used as a source of drinking water;
c. 100 feet between an active surface disposal unit and any stream, lake, river, or natural
drainage way;
d. 50 feet between an active surface disposal unit and property lines (if the original permit
was issued with the buffer distance to property line as 100 feet, updated maps must be
submitted and new acreage delineated for the buffer to be reduced);
e. 10 feet between an active surface disposal unit and any interceptor drains or surface water
diversions (upslope);
f. 25 feet between an active surface disposal unit and any interceptor drains or surface water
diversions (downslope); and
g. 25 feet between an active surface disposal unit and any groundwater lowering and surface
drainage ditches.
9. The surface disposal unit shall not be located in an unstable area.
10. The surface disposal unit shall not restrict the flow of a base flood.
II. OPERATION AND MAINTENANCE REQUIREMENTS
The surface disposal unit shall be properly maintained and operated at all times.
2. Upon classification by the Water Pollution Control System Operators Certification
Commission (WPCSOCC), the Permittee shall designate and employ a certified operator to

be in responsible charge (ORC) and one or more certified operator(s) to be back-up ORC(s)
of the surface disposal unit in accordance with 15A NCAC 8G .0201. The ORC shall visit
the unit in accordance with 15A NCAC 8G .0204 or as specified in this permit and shall
comply with all other conditions specified in these rules.
A copy of this permit shall be maintained on site when residuals are being disposed of in the
surface disposal unit during the life of this permit. A spill prevention and control plan shall
be maintained on site at all times.
4. Freeboard in the Overflow Pond shall not be less than two feet at any time. The freeboard
levels in the referenced Pond shall be monitored by an individual level gauge that has readily
visible permanent markings indicating the maximum liquid level at the top of the temporary
liquid storage volume, minimum liquid level at the bottom of the temporary liquid storage
volume, and top of the dam elevations. Freeboard level in the referenced section of the unit
shall be monitored and recorded daily (i.e., excluding weekends and State holidays).
Within ninety (90) days of the issuance of this permit DAK Americas shall develop and
submit two (2) original copies of a Standard Operating Procedure (SOP) for the maintenance
of the drains in the 12-acre lagoon. The SOP shall include a monitoring and cleaning plan to
ensure that the drains operate properly and protect the 12-acre lagoon from potential
overflows. The SOP manual and all supporting documentation shall be submitted to the
Division of Water Quality Land Application Unit 1636 Mail Service Center Raleigh, North
Carolina 27699-1636.
Adequate provisions shall be taken to prevent wind erosion from conveying pollutants or
residuals from the surface disposal unit onto the adjacent property or into any surface waters.
7. Adequate provisions shall be taken to prevent any surface runoff from occurring from the
surface disposal unit. If runoff cannot be prevented, a collection system shall be installed
with the capacity to handle runoff from a 24-hour, 25-year storm event. All collected runoff
shall be disposed in a manner approved by the Division.
A protective vegetative cover shall be established and maintained on the embankments of the
12-acre lagoon (i.e., outside toe of embankment to maximum liquid level), berms, pipe runs,
erosion control areas, and surface water diversions. Trees, shrubs, and other woody
vegetation shall not be allowed to grow on the unit dikes or embankments. All embankment
areas shall be kept mowed or otherwise controlled and accessible.
Appropriate measures shall be taken to control public access to the surface disposal unit
during active use and for the 36-month period following closure of the surface disposal unit.
Such controls may include fencing and the posting of signs indicating the activities being
conducted at the unit.
III. MONITORING AND REPORTING REQUIREMENTS
1. Any monitoring (i.e., including groundwater, surface water, residuals, soil, or plant tissue
analyses) deemed necessary by the Division to insure protection of the environment shall be
established and an acceptable sampling and reporting schedule shall be followed.

2. Residuals generated by the approved residuals source -generating facility listed in Condition 1.
4. shall be analyzed to demonstrate that they are non -hazardous under RCRA annually. A
corrosivity, ignitability, and reactivity analysis as well as a Toxicity Characteristics Leaching
Procedure (TCLP) analysis shall be conducted on residuals generated by each approved
residuals source -generating facility. if residuals generated by a particular residuals source -
generating facility are disposed of in the surface disposal unit at a frequency less than
annually, the analyses shall be required for each disposal event. The results of all analytical
determinations shall be maintained on file by the Permittee for a minimum of five years.
The TCLP analysis shall include the following parameters (i.e., note the regulatory level in
milligrams per liter in parentheses):
Arsenic (5.0)
1,4-Dichlorobenzene (7.5)
Nitrobenzene (2.0)
Barium (100.0)
1,2-Dichloroethane (0.5)
Pentachlorophenol (100.0)
Benzene (0.5)
1,1-Dichloroethylene (0.7)
Pyridine (5.0)
Cadmium (1.0)
2,4-Dinitrotoluene (0.13)
Selenium (1.0)
Carbon tetrachloride (0.5)
Endrin (0.02)
Silver (5.0)
Chlordane (0.03)
Hexachlorobenzene (0.13)
Tetrachloroethylene (0.7)
Chlorobenzene (100.0)
Heptachlor (and its hydroxide) (0.008)
Toxaphene (0.5)
Chloroform (6.0)
Hexachloro-1,3-butadiene (0.5)
TrichloroethyIene (0.5)
Chromium (5.0)
Hexachloroethane (3.0)
2,4,5-Trichlorophenol (400.0)
m-Cresol (200.0)
Lead (5.0)
2,4,6-Trichlorophenol (2.0)
o-Cresol (200.0)
Lindane (0.4)
2,4,5-TP (Silvex) (1.0)
p-Cresol (200.0)
Mercury (0.2)
Vinyl chloride (0.2)
Cresol (200.0)
Methoxychlor (10.0)
2,4-D (10.0)
Methyl ethyl ketone (200.0)
A representative analysis shall be conducted on residuals generated by the approved residuals
source -generating facility listed in Condition 1. 4. monthly, and the results of all analytical
determinations shall be maintained on file by the Permittee for a minimum of five years. The
analysis shall include but is not necessarily limited to the following parameters:
Arsenic Nickel
Chromium Percent Total Solids
The Permittee may utilize test methods in the most -recent update of the document entitled
"Test Methods for Evaluating Solid Waste, Physical/Chemical Methods (SW-846),"
published by the United States Environmental Protection Agency's Office of Solid Waste, for
the analysis of the metal parameters. Analytical results for the metal parameters shall be
reported on a dry weight basis.
4. Laboratory analyses as required by Condition 111. 1, Condition 111. 2., Condition III. 3., and
Condition III. 5. shall be performed/gathered on the residuals as they are to be disposed of in
the surface disposal unit (i.e., residuals that have been stabilized with crushed limestone or
other alkaline amendment). Furthermore, analytical determinations made pursuant to the
monitoring and reporting requirements of this permit shall be made by a laboratory certified
by the Division for the required parameter(s) under 15A NCAC 2H 0800 or 15A NCAC 2H
.1100.
Proper records shall be maintained by the Permittee tracking all disposal activities associated
with the surface disposal unit. All records shall be kept by the Permittee for a minimum
period of live years from the date of disposal. These records shall include, but shall not
necessarily be limited to, the following information:

a. Date and freeboard level measurements in the Overflow Pond;
b. Volume of residuals disposed of in the 12-acre lagoon in gallons per year, dry tons per
year, or kilograms per year;
c. Cumulative volume of residuals disposed of in the 12-acre lagoon in gallons or cubic
yards (i.e., excluding freeboard);
d. Remaining volume in the 12-acre lagoon in gallons or cubic yards (i.e., excluding
freeboard); and
e. An estimate of the remaining useful disposal life for the 12-acre lagoon in years (i.e.,
excluding freeboard).
6. Three copies of all required monitoring and reporting requirements as specified in Condition
III. 1., Condition III. 2., Condition III. 3., and Condition III. 5., shall be submitted annually
on or before March 1 st of the year following the disposal event to the following address:
NCDENR-D W Q
Aquifer Protection Section
Information Processing Unit
1617 Mail Service Center
Raleigh, North Carolina 27699-1617
7. Noncompliance Notification:
The Permittee shall report by telephone to the Aquifer Protection Section of the Division's
Wilmington Regional Office, telephone number [phone], as soon as possible, but in
no case more than 24 hours or on the next working day following the occurrence or first
knowledge of the occurrence of any of the following:
a. Any occurrence with surface disposal activities that results in the disposal of significant
amounts of wastes that are abnormal in quantity or characteristic.
b. Any failure of the surface disposal activities resulting in a release of material to receiving
waters.
c. Any time that self -monitoring information indicates that the surface disposal unit has
gone out of compliance with the conditions and limitations of this permit or the
parameters on which the system was designed.
d. Any process unit failure, due to known or unknown reasons, that renders the surface
disposal unit incapable of adequate residual treatment.
e. Any spillage or discharge from a vehicle or piping system transporting residuals to the
surface disposal unit.
Persons reporting such occurrences by telephone shall also file a written report in letterform
within five days following first knowledge of the occurrence. This report must outline the
actions taken or proposed to be taken to ensure that the problem does not recur.
IV. GROUNDWATER REQUIREMENTS
1. Any additional groundwater quality monitoring, as deemed necessary by the Division, shall
be provided.

2. The existing monitor well designated as MW-2 (2A) as shown the attached map, shall be
sampled every December for the following parameters:
NO3
Ammonia Nitrogen
Water Level
PH
Chromium
Manganese
Chloride
TDS
Lead
Total Phosphorous
Copper
Cobalt
Zinc Nickel
Semi-Volatiles
Volatile Organic Compounds by Method 6230D below
Method 6230D (Capillary - Column), "Standard Methods For The Examination
of Water and Wastewater", 17th ed., 1989
The measurement of water levels must be made prior to sampling for the remaining
parameters. The depth to water in each well shall be measured from the surveyed point
on the top of the casing.
The measuring points (top of well casing) of all monitoring wells shall be surveyed to
provide the relative elevation of the measuring point for each monitoring well.
If any volatile organic compounds are detected by Method 6230D, then the Wilmington
Regional Office Groundwater Supervisor, telephone number [phone], must be
contacted immediately for further instructions regarding any additional follow-up
analyses required. The results of all initial and follow-up analyses must be submitted
simultaneously.
The results of the sampling and analysis must be received on Form GW-59 (Groundwater
Quality Monitoring: Compliance Report Form) by the Division of Water Quality
Information Processing Unit 1617 Mail Service Center Raleigh, North Carolina 27699-
1617 on or before the last working day of the month following the sampling month.
3. Applicable Boundaries:
a. The COMPLIANCE BOUNDARY for the surface disposal unit is specified by
regulations in 15A NCAC 2L (i.e., Groundwater Classifications and Standards). An
exceedance of Groundwater Quality Standards at or beyond the Compliance Boundary is
subject to immediate remediation action according to 15A NCAC 2L .0106 (d)(2).
The Compliance Boundary for Section I of Quarry I, since this section of the surface
disposal unit was individually permitted before December 31, 1983, shall be is
established at either (1) 500 feet from this section of the surface disposal unit or (2) at
the property boundary, whichever is closest to this section of the surface disposal
unit.
ii. The Compliance Boundary for Section II of Quarry I, since this section of the surface
disposal unit was individually permitted after December 31, 1983, shall be is
established at either (1) 250 feet from this section of the surface disposal unit or (2)
50 feet within the property boundary, whichever is closest to this section of the
surface disposal unit.

b. The REVIEW BOUNDARY shall be established around the surface disposal unit
midway between the Compliance Boundary and the perimeter of the surface disposal
unit. Any exceedance of Groundwater Quality Standards at the Review Boundary shall
require action in accordance with 15A NCAC 2L .0106 (d)(1).
V. INSPECTIONS
The Permittee or his designee shall inspect the surface disposal unit to prevent malfunctions
and deterioration, operator errors and discharges which may cause or lead to the release of
wastes to the environment, a threat to human health, or a nuisance. The Permittee shall
maintain an inspection log or summary including at least the date and time of inspection;
observations made; and any maintenance, repairs, or corrective actions taken by the
Permittee. This log of inspections shall be maintained by the Permittee for a period of five
years from the date of the inspection and shall be made available to the Division or other
permitting authority, upon request.
Any duly authorized officer, employee, or representative of the Division may, upon
presentation of credentials, enter and inspect any property, premises, or place on or related to
the surface disposal unit at any reasonable time for the purpose of determining compliance
with this permit; inspect or copy any records that must be kept under the terms and conditions
of this permit; and obtain samples of groundwater, surface water, or leachate.
VI. GENERAL CONDITIONS
This permit shall become voidable unless the disposal activities are carried out in accordance
with the conditions of this permit, the supporting materials, and in the manner approved by
this Division.
This permit shall be effective only with respect to the nature and volume of wastes described
in the application and other supporting data.
This permit shall not be automatically transferable. In the event that there is a desire for the
surface disposal unit to change ownership or a name change of the Permittee, a formal permit
request shall be submitted to the Division accompanied by documentation from the parties
involved and other supporting materials as may be appropriate. The approval of this request
shall be considered on its merits and may or may not be approved.
4. Failure to abide by the conditions and limitations contained in this permit may subject the
Permittee to an enforcement action by the Division in accordance with North Carolina
General Statutes § 143-215.6A through § 143-215.6C.
The annual administering and compliance fee shall be paid by the Permittee within 30 days
after being billed by the Division. Failure to pay the fee accordingly may cause the Division
to initiate action to revoke this permit as specified by 15 NCAC 2H .0205 (c)(4).
6. The issuance of this permit does not preclude the Permittee from complying with any and all
statutes, rules, regulations, or ordinances which may be imposed by other government
agencies (i.e., local, state, and federal) which have jurisdiction, including, but not limited to,
applicable river buffer rules in 15A NCAC 2B .0200, erosion and sedimentation control

requirements in 15A NCAC Chapter 4 and under the Division's General Permit NCG010000,
and any requirements pertaining to wetlands under 15A NCAC 2B .0200 and 15A NCAC 2H
.0500. The issuance of this permit also does not preclude the Permittee from complying with
the mine recovery plan that has been approved by the Land Quality Section of the Division of
Land Resources.
The Permittee, at least six months prior to the expiration of this permit, shall request its
extension. Upon receipt of the request, the Division shall review the adequacy of the surface
disposal unit described therein and, if warranted, shall extend the permit for such period of
time and under such conditions and limitations as it may deem appropriate.
7. This permit may be modified, or revoked and/or reissued to incorporate any conditions,
limitations, and monitoring requirements the Division deems necessary in order to protect the
environment and public health adequately.
The Division shall be notified in writing at least ISO days prior to closing of the surface
disposal unit. A formal closure plan and a post -closure management care program for the
surface disposal unit shall be submitted at that time. This information shall be specific to the
surface disposal unit as well as relate to the Permittee's future plans for the land. A schedule
for implementing both the closure plan and the post -closure management care program shall
be provided as well.
Permit issued this the 28> day of August, 2006.
NORTH CAR INA ENV O ENTAL MANAGEMENT COMMISSION
f,
for Alan W. KIimek, P.E., Director
Division of Water Quality
By Authority of the Environmental Management Commission
Permit Number WQ0018087