NCS000151_NOV_20190829

STATE.y
RAY COOPER
Governor
MICHAEL S.REGAN
Scuctar}-
S.DANIEL SMITH NORTH CARD[-IIVA
Director Environmental Quality
August 28, 2019
CERTIFIED MAIL 7016 3560 0000 4428 6147
RETURN RECEIPT REQUESTED
Arauco Panels USA LLC
Attn. Jeff McMillian, Owner
985 Corinth Road
Moncure, NC 27559
Subject: NOTICE OF VIOLATION (NOV-2019-PC-0598)
Arauco Panels USA, LLC
NPDES Individual Industrial Stormwater Permit No. NCS000151
Chatham County
Dear Mr. McMillian,
On May 14, 2019,Alaina Morman and Lauren Garcia from the Raleigh Central Office of the
Division of Energy, Mineral, and Land Resources (DEMLR), conducted a compliance
inspection for the Arauco Panels USA, LLC facility located at 985 Corinth Road, in Chatham
County, North Carolina.
For your reference, a copy of the inspection report issued by DEMLR is enclosed with this
Notice.
The subject facility is covered by NPDES Individual Industrial Stormwater Permit
NCS000151. Permit coverage authorizes the discharge of stormwater from the facility to
receiving waters designated as Shaddox Creek, a class WS-1V stream in the Cape Fear River
Basin.
As a result of the compliance inspection, the following permit violations are noted:
1) Part 11,Section A.9:Stormwater Pollutiog Prevention Plan (SWPPP)
A SWPPP was not available onsite; however, a Spill Prevention and Response Plan (SPRP),
dated January 7, 2011, with a few administrative updates in 2012, was provided.When
prompted, it was stated that the documents provided were the only ones available. It
should be noted that environmental staff were away at a conference.A current SWPPP was
emailed on 5/24/2019, updated to the day.
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2) Part 11,Section A. 2.b: Secondary Containment_Requirements and Records
Secondary containment is required for: bulk storage of liquid materials; storage in any
amount of Section 313 of Title III of the Superfund Amendments and Reauthorization Act
(SARA) water priority chemicals; and storage in any amount of hazardous substances to
prevent leaks and spills from contaminating stormwater runoff. During the site visit, totes
and drums were located at the northern exterior of the particle board mill. Not all drums
were observed to be stored in proper secondary containment.
3) Part 11,Section A.4: Preventative Maintenance and Good HousekegRing_ErQgram
The facility is required to develop and implement a good housekeeping and preventative
maintenance program, which includes conducting twice-annual facility and stormwater
system inspections.The housekeeping and preventative maintenance procedures outlined
in the SWPPP have not been implemented,which has led to a mass accumulation of wood
product in the two stormwater basins present at the facility. Site conditions observed
during the inspection were unacceptable.
4) Part 11,Section B.page 6 and 7:Tier One
Exceedances of benchmark values require the permittee to increase monitoring, increase
management actions, increase record keeping, and/or install stormwater Best Management
Practices (BMPs) in a tiered program. Between 2009 and 2019, the facility has had
benchmark exceedances of one or more monitoring parameters during each monitoring
event.The most concerning exceedances have been from BOD, COD,TKN, Total Nitrogen,
and TSS. For example,the benchmark for COD is 120 mg/I; COD samples between 2009 and
2019 have measured between 140 mg/1 and 2,800 mg/I at both outfalls.
The facility is required to conduct a stormwater management inspection within two weeks
of receiving the sampling results.The inspection includes an investigation of the causes of
benchmark exceedances. Causes are then expected to be addressed and improvements
implemented.The facility was unable to provide records of improvements past 2011.
The facility is required to record each instance of a Tier I response in the SWPPP.The
record should include the date and value of the benchmark exceedance, the inspection date,
the personnel conducting the inspection, the selected actions and the date those selected
actions were implemented. There were no records associated with Tier I events in the
current SWPPP.
S) Part 11.Section B.page 7:Tier Two
After a second consecutive benchmark exceedance of any specific parameter, the facility
enters the Tier II response plan.A Tier 11 response involves another investigation,
improvements, and the institution of monthly monitoring. Since 2009, the facility has had
benchmark exceedances of one or more monitoring parameters during each monitoring
event.The facility should have taken part in monthly monitoring since at least 2010.

The facility is required to maintain a record of Tier 11 responses in the SWPPP.There were
no accompanying records present in the current SWPPP.
If sampling results for the permit monitoring periods exceed the benchmark values for any
specific parameter at any specific outfall for more than four occasions, the permittee shall
notify Division Regional Office Staff within 30 days of the receipt of the fourth analytical
results.The Division of Water Resources was allegedly notified of the exceedances as an
addendum to an application in 2016.This was the only known attempt at a notification.
The current permit term began in 2009.
Required Response:
You are directed to respond to this office, in writing,within 30 calendar days from the
receipt of this notice.Your response shall include, at minimum:
1) A reasonable explanation as to why the aforementioned violations occurred.
2) A detailed account of all response actions taken to address the aforementioned
violations,including but not limited to:
a. Efforts to implement housekeeping and preventative maintenance procedures;
b. Efforts to implement Tier One and Tier Two procedures; and
c. Efforts to address the causes of benchmark exceedances.
Additionally,the existing inspection forms need to be updated to include the stormwater inspection
criteria detailed in the SWPPP, in addition to the language already included in the forms,where
applicable.
Thank you for your attention to this matter. Your above-mentioned response to this
correspondence will be considered in any enforcement proceedings. This office requires
that the violations,as detailed above,be properly resolved.These violations and any
future violations are subject to a civil penalty assessment of up to$25,000 per day
for each violation. Should you have any questions regarding these matters, please contact
Lauren Garcia at [phone] or [e-mail].
Sincerely,
William H. Denton, IV, PE
Regional Engineering Supervisor
Division of Energy, Mineral,and Land Resources
North Carolina Dept. of Environmental Quality
Enclosure: May 14, 2019 Inspection Report

cc: Alaina Morman, Environmental Specialist alaina.mormanoncdenr.gov
Annette Lucas, Stormwater Program Supervisor annette.lucasO(,,ncdenr.gov
Thad Valentine, Environmental Senior Specialist thad.valentine r mcdenneov
Bethany Georgoulias, Environmental Engineer bethany.georgouliasawncdenr.gov
Toby Vinson, Section Chief toby.vinson(c-bncdenr.aov
Bill Denton, Engineering Regional Supervisor [e-mail]
Rick Bolich, Assistant Regional Supervisor Rick.Bolich a Tncdenr.gov
Ray Milosh, Hydrogeologist Ray.Milosh(r�ncdenr.gov