WQ0002829_Enforcement (Letter)_20180530

Water Resources }
Environmental Quality
CERTIFIED MAIL (70173380000109987014)
RETURN RECEIPT REQUESTED
Mr. George E. Goodrich, Managing Partner
KDHWWTP, LLC
PO Box 3629'
Kill Devil Hills, North Carolina 27948
May 30, 2018
Subject: Notice of Violation NOV-2018-LV-0364
Groundwater Quality
KDHW WTP
Permit No. WQ0002829
Dare County
Dear Mr. Goodrich:
ROY COOPER
Governor
MICHAEL S. REGAN
Secretary
LINDA CULPEPPER
Interim Director
Permit No. WQ0002829 was issued by the Division on July 14, 2017 for the continued operation
of the wastewater treatment and disposal system serving the above referenced facility. A review
of the permit and Groundwater Monitoring Reports showed that several samples from multiple
wells (monitoring wells CW-C, CW-F, CW-G) were above the groundwater standard for nitrate -
nitrogen.
The Division of Water Resources has reason to believe that KDHW WTP, LLC is responsible for
activities resulting in noncompliance with North Carolina law. The KDHW WTP is producing
wastewater effluent with nitrate nitrogen concentrations above the Groundwater Quality
Standard of 10 mg/1. The self -reported sample reports for the multiple wells have elevated
concentrations of nitrate nitrogen above 10 mg/l in the three wells. This letter is to formally
notify you of violations of 15A NCAC 21, (Groundwater Quality Standards) and to advise you of
what you are required to do to correct these violations in accordance with 15A NCAC 2L .0106
(d).
,_
Nct ink Compares "—,__:
State of North Carolina I Environmental Quality
943 Washington Square Mall J Washington, North Carolina 27889
252-946-6481

Page 2
George E. Goodrich
May 30, 2018
According to 15A NCAC 2L .0106 (d) (1) the permittee shall demonstrate through predictive
calculations or modeling, that natural site conditions, facility design and operational controls will
prevent a violation of standards at the compliance boundary. Alternately, the person may submit
a plan for alteration of existing site conditions, facility design or operational controls that will
prevent a violation at the compliance boundary, and implement that plan upon its approval by the
Secretary.
If contaminants are detected at or beyond the compliance boundary, the permittee-shall respond
in accordance with the requirements of 15A NCAC 2L .0106 (f). The permittee shall assess the
cause, significance and extent of the violation of standards and submit the results of the
investigation, and a plan and propose a schedule for corrective action to the Division. The
permittee shall implement the plan as approved.
Also, according to 15A NCAC 2L .0106 (f) an initial response is required to be conducted prior
to or concurrent with the assessment required in 15A NCAC 2L .0106 (d). The permittee shall
abate, contain, or control the migration of contaminants. The permittee shall remove, treat or
control the primary pollution source. The site assessment shall be in accordance with 15A NCAC
2L .0106 (g) and the corrective action shall be in accordance with 15A NCAC 2L .0106 (h).
We request that you respond to this notice within fifteen working days from its receipt. In your
response, please confirm the KDHW WTP, LLC's intent to comply with the above requirements.
We appreciate your attention and prompt response in this matter. If you have questions, please
do not hesitate to call Robert Tankard at [phone].
Sincerely,
�� 7�:q
Robert Tankard
Assistant Regional Supervisor
Water Quality Operations Section
Washington Regional Office
cc: Central Office - Water Quality Permitting
Dare County Health Department
WaRO
Enclosure: 15A NCAC 02L .0106
List of Violations

15A NCAC 02L .0106 CORRECTIVE ACTION
(a) Where groundwater quality has been degraded, the goal of any required corrective action shall be restoration to
the level of the standards; or as closely thereto as is economically and technologically feasible as determined by the
Department in accordance with this Rule. In all cases involving requests to the Secretary, as defined in 15A NCAC
02C .0102, for approval of corrective action plans, or termination of corrective action, the responsibility for
providing all information required by this Rule lies with the person(s) making the request.
(b) Any person conducting or controlling an activity that results in the discharge of a waste or hazardous substance
or oil to the groundwaters of the State, or in proximity thereto, shall take action upon discovery to terminate and
control the discharge, mitigate any hazards resulting from exposure to the pollutants and notify the Department, as
defined in 15A NCAC 02C .0102, of the discharge.
(c) Any person conducting or controlling an activity that has not been permitted by the Department and that results
in an increase in the concentration of a substance in excess of the standard, other than agricultural operations, shall:
(1) within 24 hours of discovery of the violation; notify the Department of the activity that has
resulted in the increase and the contaminant concentration levels;
(2) respond in accordance with Paragraph (f) of this Rule;
(3) submit a report to the Secretary assessing the cause, significance, and extent of the violation; and
(4) implement an approved corrective action plan for restoration of groundwater quality in accordance
with a schedule established by the Secretary. In establishing a schedule, the Secretary shall
consider a schedule proposed by the person submitting the plan. A report shall be made to the
Health Director of the county or counties in which the contamination occurs in accordance with
the requirements of Rule .0114(a) in this Section.
Any activity not permitted pursuant to G.S. 143-215.1 or G.S. 130A-294 shall, for the purpose of this Rule, be
deemed not permitted by the Department and subject to the provisions of this Paragraph.
(d) Any person conducting or controlling an activity that is conducted under the authority of a permit initially issued
by the Department on or after December 30, 1983 pursuant to G.S. 143-215.1 or G.S. 130A-294 and that results in
an increase in concentration of a substance in excess of the standards:
(1) at or beyond a review boundary: the person shall demonstrate, through predictive calculations or
modeling, that natural site conditions, facility design and operational controls will prevent a
violation of standards at the compliance boundary. Alternately, the person may submit a plan for
alteration of existing site conditions, facility design, or operational controls that will prevent a
violation at the compliance boundary, and implement that plan upon its approval by the Secretary.
(2) at or beyond a compliance boundary: the person shall respond in accordance with Paragraph (f) of
this Rule, assess the cause, significance and extent of the violation of standards and submit the
results of the investigation, and a plan and proposed schedule for corrective action to the
Secretary. The permittee shall implement the plan as approved by and in accordance with a
schedule established by the Secretary. In establishing a schedule the Secretary shall consider any
schedule proposed by the permittee, the scope of the project, the extent of contamination, and the
corrective action being proposed.
(e) .Any person conducting or controlling an activity that is conducted under the authority of a permit initially issued
by the Department prior to December 30, 1983 pursuant to G.S. 143-215.1 or G.S. 130A-294, and that results in an
increase in concentration of a substance in excess of the standards at or beyond the compliance boundary specified
in the permit, shall:
(1) within 24 hours of discoveryof the violation, notify the Department of the activity that has
resulted in the increase and the contaminant concentration levels;
(2) respond in accordance with Paragraph (f) of this Rule;
(3) submit a report to the Secretary assessing the cause, significance and extent of the violation; and
(4) implement an approved corrective action plan for restoration of groundwater quality at or beyond
the compliance boundary, in accordance with a schedule established by the Secretary. In
establishing a schedule the Secretary shall consider any schedule proposed by the person
submitting the plan. A report shall be made to the Health Director of the county or counties where
the contamination occurs in accordance with the requirements of Rule .0114(a) in this Section.
(f) Initial response required to be conducted prior to or concurrent with the assessment required in Paragraphs (c),
(d), or (e) of this Rule shall include:
(1) Prevention of fire, explosion, or the spread of noxious fumes;
(2) Abatement, containment, or control of the migration of contaminants;

(3) Removal, treatment, or control of any primary pollution source such as buried waste, waste
stockpiles, or surficial accumulations of free products;
(4) Removal, treatment, or control of secondary pollution sources that would be potential continuing
sources of pollutants to the groundwaters, such as contaminated soils and non -aqueous phase
liquids. Contaminated soils that threaten the quality of groundwaters shall be treated, contained,
or disposed of in accordance with rules in this Chapter and in 15A NCAC 13 applicable to such
activities. The treatment or disposal of contaminated soils shall be conducted in a manner that will
not result in a violation of standards or North Carolina Hazardous Waste Management rules.
(g) The site assessment conducted pursuant to the requirements of Paragraphs (c), (d), or (e) of this Rule, shall
include:
(1) The source and cause of contamination;
(2) Any imminent hazards to public health and safety, as defined in G.S. 130A-2, and any actions
taken to mitigate them in accordance with Paragraph (f) of this Rule;
(3) All receptors and significant exposure pathways;
(4) The horizontal and vertical extent of soil and groundwater contamination and all significant
factors affecting contaminant transport; and
(5) Geological and hydrogeological features influencing the movement, chemical, and physical
character of the contaminants.
Reports of site assessments shall be submitted to the Department as soon as practicable or in accordance with a
schedule established by the Secretary. In establishing a schedule the Secretary shall consider a proposal by the
person submitting the report.
(h) Corrective action plans for restoration of groundwater quality, submitted pursuant to Paragraphs (c), (d), and (e)
of this Rule shall include:
(1) A description of the proposed corrective action and reasons for its selection;
(2) Specific plans, including engineering details where applicable, for restoring groundwater quality;
(3) A schedule for the implementation and operation of the proposed plan; and
(4) A monitoring plan for evaluating the effectiveness of the proposed corrective action and the
movement of the contaminant plume.
(i) In the evaluation of corrective action plans, the Secretary shall consider the extent of any violations, the extent of
any threat to human health or safety, the extent of damage or potential adverse impact to the environment,
technology available to accomplish restoration, the potential for degradation of the contaminants in the environment,
the time and costs estimated to achieve groundwater quality restoration, and the public and economic benefits to be
derived from groundwater quality restoration.
0) A corrective action plan prepared pursuant to Paragraphs (c), (d), or (e) of this Rule -shall be implemented using a
remedial technology demonstrated to provide the most effective means, taking into consideration geological and
hydrogeological conditions at the contaminated site, for restoration of groundwater quality to the level of the
standards. Corrective action plans prepared pursuant to Paragraphs (c) or (e) of this Rule may request an exception
as provided in Paragraphs (k), (1), (m), (r), and (s) of this Rule.
(k) Any person required to implement an approved corrective action plan for a site subject to Paragraphs (c) or (e)
of this Rule may request that the Secretary approve such a plan without requiring groundwater remediation to the
standards. A request submitted to the Secretary under this Paragraph shall include a description of site -specific
conditions, including information on the availability of public water supplies for the affected area; the technical
basis for the request; and any other information requested by the Secretary to evaluate the request in accordance
with Subparagraphs (1) through (7) of this Paragraph. The person making the request shall demonstrate:
(1) that all sources of contamination and free product have been removed or controlled pursuant to
Paragraph (f) of this Rule;
(2) that the time and direction of contaminant travel can be predicted with reasonable certainty;
(3) that contaminants have not and will not migrate onto adjacent properties, or that:
(A) such properties are served by an existing public water. supply system dependent on
surface waters or hydraulically isolated groundwater; or
(B) the owners of such properties have consented in writing to the request;
(4) that the standards specified in Rule .0202 of this Subchapter will be met at a location no closer
than one year time of travel upgradient of an existing or foreseeable receptor, based on travel time
and the natural attenuation capacity of subsurface materials or on a physical barrier to groundwater
migration that exists or will be installed by the person making the request;

(5) that, if the contaminant plume is expected to intercept surface waters, the groundwater discharge
will not possess contaminant concentrations that would result in violations of standards for surface
waters contained in 15A NCAC 02B .0200;
(6) that public notice of the request has been provided in accordance with Rule .0114(b) of this
Section; and
(7) that the proposed corrective action plan would be consistent with all other environmental laws.
(1) Any person required to implement an approved corrective action plan for a site subject to Paragraphs (c) or (e) of
this Rule may request that the Secretary approve such a plan based upon natural processes of degradation and
attenuation of contaminants. A request submitted to the Secretary under this Paragraph shall include a description of
site -specific conditions, including written documentation of projected groundwater use in the contaminated area
based on current state or local government planning efforts; the technical basis for the request; and any other
information requested by the Secretary to evaluate the request in accordance with Subparagraphs (1) through (10) of
this Paragraph. The person making the request shall demonstrate:
(1) that all sources of contamination and free product have been removed or controlled pursuant to
Paragraph (f) of this Rule;
(2) that the contaminant has the capacity to degrade or attenuate under the site -specific conditions;
(3) that the time and direction of contaminant travel can be predicted based on subsurface conditions
and the contaminant's physical and chemical properties;
(4) that contaminant migration will not result in any violation of applicable groundwater standards at
any existing or foreseeable receptor;
(5) that contaminants have not and will not migrate onto adjacent properties, or that:
(A) such properties are served by an existing public water supply system dependent on
surface waters or hydraulically isolated groundwater; or
(B) the owners of such properties have consented in writing to the request;
(6) that, if the contaminant plume is expected to intercept surface waters, the groundwater discharge
will not possess contaminant concentrations that would result in violations of standards for surface
waters contained in 15A NCAC 02B .0200;
(7) that the person making the request will put in place a groundwater monitoring program that, based
on subsurface conditions and the physical and chemical properties of the contaminant, will
accurately track the degradation and attenuation of contaminants and contaminant by-products
within and down gradient of the plume and to detect contaminants and contaminant by-products
prior to their reaching any existing or foreseeable receptor at least one year's time of travel
upgradient of the receptor and no greater than the distance the groundwater at the contaminated
site is predicted to travel in five years;
(8) that all necessary access agreements needed to monitor groundwater quality pursuant to
Subparagraph (7) of this Paragraph have been or can be obtained;
(9) that public notice of the request has been provided in accordance with Rule .0114(b) of this
Section; and
(10) that the proposed corrective action plan would be consistent with all other environmental laws.
(m) The Department or any person required to implement an approved corrective action plan for a site subject to
Paragraphs (c) or (e) of this Rule may request that the Secretary approve termination of corrective action.
(1) A request submitted to the Secretary under this Paragraph shall include:
(A) a discussion of the duration of the corrective action, the total project cost, projected
annual cost for continuance and evaluation of the success of the corrective action;
(B) an evaluation of alternate treatment technologies that could result in further reduction of
contaminant levels, projected capital, and annual operating costs for each technology; and
(C) the effects, including health and safety impacts, on groundwater users if contaminant
levels remain at levels existing at the time corrective action is terminated.
(2) In addition, the person making the request shall demonstrate:
(A) that continuation of corrective action would not result in a significant reduction in the
concentration of contaminants. This demonstration shall show the duration and degree of
success of existing remedial efforts to attain standards. For the purpose of this Part, a
"significant reduction" is demonstrated by showing that the asymptotic slope of the
contaminants curve of decontamination is less than a ratio of 1:40 over a term of one year
based on quarterly sampling;
(B) that contaminants have not and will not migrate onto adjacent properties, or that:

(i) such properties are served by an existing public water supply system dependent
on surface waters or hydraulically isolated groundwater; or
(ii) the owners of such properties have consented in writing to the request;
(C) that, if the contaminant plumes are expected to intercept surface waters, the groundwater
discharge will not possess contaminant concentrations that would result in violations of
standards for surface waters contained in 15A NCAC 02B .0200;
(D) that public notice of the request has been provided in accordance with Rule .0114(b) of
this Section; and
(E) that the proposed termination would be consistent with all other environmental laws.
(3) The Secretary shall not authorize termination of corrective action for any area that, at the time the
request is made, has been identified by a state or local groundwater use planning process for a
resource development.
(4) The Secretary may authorize the termination of corrective action, or amend the corrective action
plan after considering all the information in the request. In making the authorization, the
Secretary shall consider health and safety impacts on all existing and foreseeable receptors and the
impacts the contaminated plume may have if it reaches them. Upon termination of corrective
action, the Secretary shall require implementation of a groundwater monitoring program that;
based on subsurface conditions and the physical and chemical properties of the contaminants, will
accurately track the degradation and attenuation of contaminants at a location of no less than one
year's predicted time of travel upgradient of any existing or foreseeable receptor. The monitoring
program shall remain in effect until there is sufficient evidence that the contaminant
concentrations have been reduced to the level of the standards. For the. purpose of this Part,
"sufficient evidence" means that sampling and analyses demonstrate that contaminant
concentrations have been reduced to the level of the standards on multiple sampling events.
(n) Upon a determination by the Secretary that continued corrective action would result in no significant reduction
in contaminant concentrations, and the contaminated groundwaters can be rendered potable by treatment using
technologies that are in use in other applications and shown to be effective for removal of contaminants, the
Secretary may designate the remaining area of degraded groundwater RS. Where the remaining degraded
groundwaters cannot be made potable by such treatment, the Secretary may consider a request for reclassification of
the groundwater to a GC classification as outlined in Rule .0201 of this Subchapter.
(o) If at any the Secretary determines that a new technology is available that would remediate the contaminated
groundwater to the standards specified in Rule .0202 of this Subchapter, the Secretary may require the responsible
party to evaluate the economic and technological feasibility of implementing the .new technology in an active
groundwater corrective action plan in accordance with a schedule established by the Secretary. The Secretary's
determination to utilize new technology at any site or for any particular constituent shall include a consideration of
the factors in Paragraph (h) of this Rule.
(p) Where standards are exceeded as a result of the application of pesticides or other agricultural chemicals, the
Secretary shall request the Pesticide Board or the Department of Agriculture and Consumer Services to assist the
Department in determining the cause of the violation. If the violation is determined to have resulted from the use of
pesticides, the Secretary shall request the Pesticide Board to take appropriate regulatory action to control the use of
the chemical or chemicals responsible for, or contributing to, such violations, or to discontinue their use.
(q) The approval pursuant to this Rule of any corrective action plan, or modification or termination thereof, that -
permits the migration of a -contaminant onto adjacent property, shall not affect any private right of action by any
party that may be affected by that contamination.
(r) If a discharge or release is not governed by the rules in Section .0400 of this Subchapter and the increase in the
concentration of a substance in excess of the standard resulted in whole or in part from a release from a commercial
or noncommercial underground storage tank as defined in G.S. 143-215.94A, any person required to implement an
approved corrective action plan pursuant to this Rule and seeking reimbursement for the Commercial or
Noncommercial Leaking Petroleum Underground Storage Tank Cleanup Funds shall implement a corrective action
plan meeting the requirements of Paragraph (k) or (1) of this Rule unless the person demonstrates to the Secretary
that:
(1) contamination resulting from the discharge cannot qualify for approval of a plan based on the
requirements of the Paragraphs; or
(2) the cost of making such a demonstration would exceed the cost of implementing a corrective
action plan submitted pursuant to Paragraph (c) of this Rule.

(s) If a discharge or release is not governed by the rules in Section .0400 of this Subchapter and the increase in the
concentration of a substance in excess of the standard resulted in whole or in part from a release from a commercial
or noncommercial underground storage tank as defined in G.S. 143-215.94A, the Secretary may require any person
implementing or operating a previously approved corrective action plan pursuant to this Rule to:
(1) develop and implement a corrective action plan meeting the requirements of Paragraphs (k) and (1)
of this Rule; or
(2) seek discontinuance of corrective action pursuant to Paragraph (m) of this Rule.
History Note: Authority G.S. 143-215.1; 143-215.3; 143-215.94A; 143-215.94T; 143-215.94V,-143B-282;
1995 (Reg. Sesa. 1996) c. 648, s. 1;
Eff. August 1, 1989;
Amended Eff. October 1, 1993; September 1, 1992;
Temporary Amendment Eff. January 2, 1998; January 2, 1996; .
Amended Eff. July 1, 2016, October 29, 1998.

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William G. Freed, Inc. < , Telephone [phone]
PO Box 69 FAX [phone]
Harbinger, NC27941-0069 �"101 ,
�'' nj,� June 25, 2018
Robert Tankard
Environmental Resources, Water Quality
Washington Regional Office
943 Washington Square Mall
Washington, NC 27889
RE: KDHWWTP LLC - NOV-2018-LV-0364
Please except this initial response to NOV-2018-LV-0364 on behalf of the ownership of KDHW WTP,
LLC.
In anticipation of this problem KDHW WTP submitted plans and received approval for modification of
the KDHW WTP LLC wastewater treatment plant in July 2017. The ownership of the plant has been
working on raising the substantial capital required for such improvements.
At this time the engineers, owners, operators and contractor are working through plans and schedules to
determine a schedule to implement the improvements in a phased approach with modifications to begin
fall or winter of 2018.
Engineers are going to model the system modifications to predict the level of nutrient reduction of the
system as a multi stage Eardenpho process without the addition of media. Understanding that media is the
most expensive part of the of the system and only serves to increase capacity it makes financial sense to
delay the addition of media until such time as flow dictates the need for more capacity.
The most likely scenario will be to convert one side of the plant to multi stage Bardenpho process as
shown in the approved plans minus the media fall/ winter of 2018. This modification will reduce Nitrate
and Phosphorus output of the plant to the levels outlined in the new permit. Once the engineers finish
modeling the plant they will do a mass balance based on flow to predict the effluent concentration of the
plant composite effluent.
The results of the modeling above will determine when the next improvements will be accomplished.
As I read the statutes provided, it does not appear that any predictive modeling is necessary, the source is
known and the plan is to reduce the known source below groundwater standard.
KDHW WTP will submit a plan as requested in 15A NCAC 2L.0106(h) within 60 days outlining a
corrective action timeframe.
On behalf of the ownership, I would ask that the Division allow the ownership 60 days to work through
and present the plan as discussed above.
Thank You,
it
Pres. En iro-Tech