wq0028552_Enforcement (Letter)_20180822

Water Resources
Environmental Quality
August 22, 2018
CERTIFIED MAIL
RETURN RECEIPT REQUESTED
RECEIPT # 7016 2140 0000 4368 5814
Michael J. Myers — Managing Member
Old North State Water Company, LLC
1620 Chalk Road
Wake Forest, NC 27587
ROY COOPER
Governor
MICHAEL S. REGAN
Secretary
LINDA CULPEPPER
Interim Director
Subject: Notice of Violation & Notice of Intent to Enforce
NOV-2018-PC-0337
Permit No. WQ0028552
Briar Chapel Development Reclaimed Water
Generation and Irrigation System
Chatham County
Dear Mr. Myers:
Staff of the NC DEQ Division of Water Resources (DWR), Water Quality Regional Operations Section in
the Raleigh Regional Office (RRO) inspected the Briar Chapel Reclaimed Water Generation and Irrigation
facility (WQ0028552) on August 21, 2018. This inspection was conducted in response to a complaint
received by the RRO on August 8, 2018 and August 20, 2018 regarding overspraying of wastewater on the
development's tennis and pickle ball courts. Ray Milosh from the RRO responded to the complaint and
conducted this inspection.
The following items specify a permit conditions that were noted to be in violation during Mr. Milosh's
complaint investigation and inspection of August 21, 2018:
H. PERFORMANCE STANDARDS 1., which states, "The subject non -discharge facilities shall be
effectively maintained and operated at all times so there is no discharge to surface waters, nor any
contravention of groundwater or surface water standards. In the event the facilities fail to perform
satisfactorily, including the creation of nuisance conditions due to improper operation and maintenance,
or failure of the utilization areas to adequately assimilate the reclaimed water, the Permittee shall take
immediate corrective actions including Division required actions, such as the construction of additional or
replacement wastewater treatment, disposal, or utilization facilities."
During the August 21, 2018 site inspection, Mr. Milosh noted the following nuisance conditions:
• a zone next to the fence was irrigating and a light breeze was carrying the water onto the courts
making them slick and potentially dangerous to players,
• accessing the courts without being sprayed was difficult, as the wastewater is directed over the
sidewalk to the court,
f Nothing Compares`- ,.
Division of Water Resources, Raleigh Regional Office, Water Quality Operations Section http://portal.nedenr.org/web/wq/aps
1628 Mail Service Center, Raleigh, NC 27699-1628 Phone: [phone]
Location: 3800 Barrett Drive, Raleigh, NC 27609 Fax: [phone]

Mr. Michael Myers
NOV-2018-PC-0337
August 2018 �
Page 2 off 10
---w
• wastewater was being sprayed directly onto the benches in the picnic pavilion. (Photos 1 & 2)
III. OPERATIONS AND MAINTENANCE REQUIREMENTS 5., which states, "5. A suitable year
round vegetative cover shall be maintained on irrigation sites at all times, such that crop health is
optimized, allows for even distribution of reclaimed water, and allows inspection of the irrigation system."
During the August 21, 2018 inspection, the grass around the pickleball court, the tennis court, the basketball
court, the pavilion and the surrounding fields appeared to be suffering from over irrigation, and the
distressed condition of the fields has contributed to the creation of wastewater ponding and runoff. (Photos
5&6)
III. OPERATIONS AND MAINTENANCE REQUIREMENTS 6., which states, "6. Adequate
measures shall be taken to prevent reclaimed water ponding in or runoff from the irrigation sites. ", and
"7., Irrigation shall not be performed during inclement weather or when the ground is in a condition that
will cause ponding or runoff."
Wastewater ponding and runoff was noted to be occurring during the August 21, 2018 inspection by the
RRO. (Photos 2 through 7)
IV. MONITORING AND REPORTING REQUIREMENTS 13. Noncompliance Notification: which
states, "The Permittee shall report by telephone to the Raleigh Regional Office, telephone number (919)
791-4200, 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:.......
e. Ponding in or runofffrom the wastewater irrigation/reclaimed water utilization sites."
The RRO received no notification of the occurrence of wastewater ponding and runoff occurring at the
facility by the permittee. Algae was observed in the concrete gutters where runoff was noted to be occurring
during the August 21, 2018 inspection, indicating that runoff has been occurring for an extended period of
time with no required notification to the RRO.
You are required to take any necessary action to correct the above violations and to provide
a written response to this Notice within 30 days of receipt of this correspondence. Please include in
your response all corrective actions already taken and a schedule for completion of any corrective actions
planned for the immediate future.
Failure to comply with the State's rules, in the manner and time specified, may result in the
recommendation of enforcement action, to the Director of the Division of Water Resources who may issue
a civil penalty assessment of not more than twenty-five thousand ($25,000) dollars against any "person"
who violates or fails to act in accordance with the terms, conditions or requirements of a permit under
authority of G.S. 143-215.6A. This letter is to advise you that this office is considering recommending
enforcement action to the Director of the Division of Water Resources The recommendation for
enforcement concerns the violations cited above
If you wish to present an explanation for the violations cited, or if you believe there are other factors
which should be considered, please send such information to me in writing within thirty (30) days following
receipt of this letter. Your explanation will be reviewed, and, if an enforcement action is still deemed
appropriate, your explanation will be forwarded to the Director with the enforcement package for their
consideration.

Mr. Michael Myers
NOV-2018-PC-0337
August 2,2,2018
Page 3 of 10
If you have any questions concerning this Notice, please contact Ray Milosh or me at [phone].
Sincerely,
Rick Bolich, L.G.,
Assistant Supervisor
Raleigh Regional Office
Water Quality Regional Operations
NC DEQ Division of Water Resources
cc: Chatham County Environmental Health Department
RRO-WQROS Files
DWR Central Files

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ROY COOPER
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MICHAEL S. REGAN
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LINDA CULPEPPER
Interim Armor
CERTIFIED MAIL 7016 2140 0000 0562 3557
RETURN RECEIPT REQUESTED
Michael J. Myers -Managing Member
Old North State Water Company, LLC
4700 Homewood Ct., Ste. 108
Raleigh, North Carolina 27609
NORTH CAROLINA
EnWrannuntol Quality
November 6, 2018
SUBJECT: Assessment of Civil Penalties for Violation(s) of
NCGS 143-215.1 and Permit No. W00028552
Enforcement Case File No. PC-2018-0022
Chatham County
Dear Mr. Myers:
NC Dept of Environmental Quality
NOV - 8 2018
Raleigh Regional Offlce
This letter transmits notice of a civil penalty assessed against Old North State Water Company, LLC
in the amount of $l 1,000 and $261.84 in investigative cost, for a total of $11,261.84. 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 Secretary of the Department of
Environmental Quality and the Director of the Division of Water Resources. Any continuing violation(s) may be subject
of new enforcement action, including an additional penalty.
Within thirty days of the receipt of this notice, you must do one of the following:
1. Submit payment of penalty:
Payment should be made directly to the order of Department of Environmental Quality (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:
Mrs. Sonia Graves
Non -Discharge Permitting Branch
Division of Water Resources
1617 Mail Service Center
Raleigh, NC 27699-1636
North Carolina Department of Environmental Quality I Division of Water Resources I Non -Discharge Branch
512 North Salisbury Street 11617 Mail Service Center I Raleigh, North Carolina 27699-1617
919.707.3654

-OR-
2. Submit a written request for remission including a detailed justification for such requests
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 of an
Assessment of Civil Penalty 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 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 14313-282.1(b) were wrongfully applied
to 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 "Request for Remission of Civil
Penalties, Waiver of right to Administrative Hearing, and Stipulation of Facts" form within thirty (30) days of
the 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:
Mrs. Sonia Graves
Non -Discharge Permitting Branch
Division of Water Resources
1617 Mail Service Center
Raleigh, NC 27699-1636
M,a
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 the Office of Administrative Hearings.

You must file the petition with the Office of Administrative hearings within thirty (30) days of the 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 accept filings Monday through Friday between the hours of
8:00 a.m and 5:00 p.m, except for official state holidays. The petition may be filed by facsimile (fax) or
electronic mail by an attached file (with restrictions)- provided the signed original, one (1) copy and a filing fee (if
filing fee is required by NCGS 150B-23.2) is received in the Office of Administrative Hearing within seven (7)
business days following the faxed or electronic transmission. You should contact the Office of Administrative
hearings with all questions regarding the filing fee and/or details of the filing process. The mailing address and
telephone and fax numbers for the Office of Administrative Hearings are as follows:
Office of Administrative Hearings
6714 Mail Service Center
Raleigh, NC 27699-6714
Telephone [phone]
Fax: [phone]
One (1) copy of the petition must also be served as follows:
Lacy Presnell, General Counsel
Department of Environmental Quality
1601 Mail Service Center
Raleigh, NC 27699-1601
Please indicate the enforcement file number (as found on page one of this letter) on the petition.
Failure to exercise one of the options 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 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 call Sonia Graves at 919-707-3657 or e-mail
Sonia. rg avesA cn denr.gov Thank you for your cooperation in this matter.
Sincerely,
?Linda Culpepper, Interim Due
Division of Water Resources
Attachments
cc: Efrforcement File #: PC-2018-0022
L4tick Bolich- Raleigh Regional Office
File Copy
Central Files

STATE OF NORTH CAROLINA
COUNTY OF CHATHAM
OLD NORTH STATE WATER COMPANY,
LLC,
Petitioner,
u
NORTH CAROLINA DEPARTMENT OF
ENVIRONMENTAL QUALITY,
Respondent.
IN THE OFFICE OF
ADMINISTRATIVE HEARINGS
18 EHR 07508
SETTLEMENT AGREEMENT
Petitioner OLD 'NORTH STATE WATER COMPANY, LLC, ("Petitioner") and
Respondent North Carolina Department of Environmental Quality ("NCDEQ"), Division of Water
Resources ("DWR") ("Respondent') hereby enter into this Settlement Agreement ("Agreement")
in order to resolve a matter in controversy between them. This matter arose out of the issuance of
a Civil Penalty assessment in the amount of $11,000.00 plus $261.84 for investigative costs
("CPA") (attached hereto as Exhibit A). The CPA was for alleged violations of N.C.G.S. 143-
215.1 and Permit No. WQ0028552 as described in the Findings and Decision and Assessment of
Civil Penalty document included in the CPA.
Without any hearing of fact or law in the above -styled matter, IT IS THEREFORE
AGREED BY THE PARTIES THAT:
1. In order to avoid the cost and delay of further litigation, the parties have entered into this
Agreement, have agreed that all parties have been correctly designated, and that there is
no question as to misjoinder or nonjoinder.
2. The Petitioner shall pay DEQ $7,700 plus the $261.84 in enforcement costs, for a total

amount of $7961.84 ("Settlement Amount"), in full settlement of all violations described in the
CPA. The Settlement Amount shall be made in a lump sum payment due within thirty (30) calendar
days of the execution of this Agreement. The payment shall be made by check and made payable
to the "North Carolina Department of Environmental Quality" and delivered to the following
address:
Ifsending via US Postal Service Ifsending via delivery service (UPS, FedEx, etc)
Carolyn Hudnell, Admin. Assistant Carolyn Hudnell, Admin. Assistant
NCDOJ NCDOJ
9001 MSC 119 W. Edenton Street
Raleigh, NC 27699-9001 Raleigh, NC 27603
3. Within fourteen (14) days of execution of this Agreement by the parties, the Petitioner shall
file a notice of voluntary dismissal with prejudice of the Petitioner's Petition for Contested Case
Hearing in the above captioned matter, 18 EHR 07508.
4. Nothing in this Agreement shall restrict the right of DEQ, including DWR, to inspect or
take enforcement action against Old North State Water Company for any other violations of
environmental statutes, the relevant rules promulgated thereunder, or any environmental permits
or certificates held by Petitioner. Similarly, nothing in this Agreement shall restrict the right of the
Petitioner to contest any other enforcement action,
5. It is understood and agreed that payments made or actions taken pursuant to the terms of
this Agreement.are not to be construed as an admission of liability by Petitioner, nor as an
admission by the Respondent that the penalty was improperly issued, and that this Agreement is a
compromise of disputed claims.
6. The Petitioner and Respondent agree that, for purposes of any future bankruptcy
proceeding, this Agreement is not intended as, nor shall it be deemed to constitute, a novation of
any claims asserted by the Respondent against the Petitioner. Petitioner further agrees that pursuant
ba

to 11 U.S.C. § 523 all sums payable to the Respondent pursuant to this Agreement are non -
dischargeable in bankruptcy. Nothing in this Agreement releases any non-dischargeability claims
that may be asserted by Respondent in any bankruptcy proceeding, and nothing in this Agreement
shall be deemed a waiver of Respondent's right to rely on the nature of any claim or debt released
in this Agreement to show that the claim or debt is non -dischargeable.
7. The parties agree that the consideration for this settlement is the promises contained herein
and that this Agreement contains the whole agreement between them.
8. This Agreement is entered into knowingly, intelligently, and voluntarily and shall be
binding upon the parties, their successors and assigns, upon execution by the undersigned, -who
represent and warrant that they are authorized to enter into this Agreement on behalf of the parties
hereto. The Petitioner was represented by counsel, J. Carr McLamb Jr.
PETITIONER, OLD NORTH STATE WATER COMPANY, LLC
Michael J. Myerg
President
Old North State Water Company
Executed this the3 day of April, 2019
3

RESPONDENT, NORTH CAROLINA DEPARTMENT
OF ENVIRONMENTAL QUALITY
Ric Bolich, L.G..
Assistant Regional Supervisor
N.C. Division of Water Resources
Executed this the day of April. 2019
4

Exhibit A
ROY COOPER
MICHAEL S. REGAN
Se etory
LINDA CULPEPPER
Interim tftrwtw
CERTIFIED MAIL 7016 2140 0000 0562 3557
RETURN RECEIPT REQUESTED
Michael J. Myers -Managing Member
Old North State Water Company, LLC
4700 Homewood Ct., Ste. 108
Raleigh, North Carolina 27609
NORTH CARO? INA
Envimnmen tat Quality
November 6, 2018
SUILIECT: Assessment of Civil Penalties for Violation(s) of
NCGS 143-215.1 and Permit No. W00028552
Enforcement Case File No. PC-2018-0022
Chatham County
Dear Mr. Myers
NC Dept of Gnvim
rnncntal Quality
0,,0-S)NIB
Raleigh Rcgiollal Office
This letter transmits notice of a civil penalty assessed against Old North State Water Company, LLC
in the amount of $11,000 and $261.84 in investigative cost, for a total of 1111,261.84. 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. Secretary of the Department of
Environmental Quality and the Director of the Division of Water Resources. Any continuing violation(s) may be subject
of new enforcement action, including an additional penalty.
Within thirty days of the receipt of this notice, you must do one of the following:
Submit payment of penalty:
Payment should be made directly to the order of Department of Environmental Quality (do not include waiver
form). Payment of the penalty will not foreclose further enforcement action f'or any continuing or new
violation(s). Please submit payment to the attention of:
Mrs. Sonia Graves
Non -Discharge Permitting Branch
Division of Water Resources
1617 Mail Service Center
Raleigh, NC 27699-1636
North Carolina Department of Environmental Quality l Division of water Resources: Non -Discharge Blanch
512 North SalishurySbeet 11617 Mail Service Center I Raleigh. North Caromta 276991617
919,70? 3654

-OR
2. Submit a written request for remission including a detailed justirccation for such requests
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 of an
Assessment of Civil Penalty 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
remissiori'regtiest foibbloses the option of an administrative heating, such a request must be accompanied by a
waiver of your right to an administrative hearing and stipulation and agreement that no factual or legal issues are
in`dispute..,P,.lease;prepae a detailed statement that establishes why you believe the civil penalty should be
remitted, and submit its tiiftlib Division of Water Resources at the address listed below. In determining whether a
remission request wiU be approved, the following factors sball be considered:
i. Whether one or more of the civil penalty assessment factors in NCGS 143B-282.1(b) were wrongfuUy applied
to 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
S. 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 "Request for Remission of Civil
Penalties, Waiver of right to Administrative Hearing, and Stipulation of Facts" form within thirty (30) days of
the 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:
Mrs. Sonia Graves
Non -Discharge Permitting Branch
Division of Water Resources
1617 Mail Service Center
Raleigh, NC 27699-1636
-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 the Office of Administrative Hearings.

You must file the petition with the Office of Administrative hearings within thirty (30) days of the 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 accept filings Monday through Friday between the hours of
8:00 am and 5:00 p.m, except for official state holidays. The petition may be filed by facsimile (fax) or
electronic mail by an attached file (with restrictions)- provided the signed original, one (1) copy and a filing fee (if
filing fee is required by NCGS 15013-23.2) is received in the Office of Administrative Hearing within seven (7)
business days following the faxed or electronic transmission. You should contact the Office of Administrative
hearings with all questions regarding the filing fee and/or details of the filing process. The mailing address and
telephone and fax numbers for the Office of Administrative Hearings are as follows:
Office of Administrative Hearings
6714 Mail Service Center
Raleigh, NC 27699-6714
Telephone [phone]
Fax: [phone]
One (1) copy of the petition must also be served as follows:
Lacy Presnell, General Counsel
Department of Environmental Quality
1601 Mail Service Center
Raleigh, NC 27699-1601
Please indicate the enforcement file number (as found on page one of this letter) on the petition.
Failure to exercise one of the options 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 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 call Sonia Graves at 919-707-3657 or e-mail
[e-mail] Thank you'£or your cooperation in this matter.
Sincerely,
?Linda Culpepper, Interim Diir
13 Division of Water Resources
Attachments
cc: Epforcement File #: PC-2018-0022
L4tick Bolich- Raleigh Regional Office
File Copy
Central Files

STATE OF NORTH CAROLINA NORTH CAROLINA
DEPARTMENT OF ENVIRONMENTAL QUALITY
COUNTY OF CHATHAM
IN THE MATTER OF ASSESSMENT
)
OF CIVIL PENALTIES AGAINST
)
OLD NORTH STATE
)
WATER COMPANY, LLC
)
FILE NO. PC-2018-0022
FOR VIOLATIONS OF:
)
FINDINGS AND DECISION
AND ASSESSMENT OF
PERMIT NO. W00028552
)
CIVIL PENALTIES
Acting pursuant to North Carolina General Statutes (N.C.G.S.) 143-215.6(A) and the delegation
provided by the Secretary of the Department of Environmental Quality and the Director of the Division
of Water Resources, I, Jeff Poupart, Chief of the Division of Water Resources (DWR) Water Quality
Permitting Section, make the following:
A. Old North State Water Company, LLC operates wastewater treatment, non-corljunctive reclaimed
water and conjunctive reclaimed water system at the Brier Chapel Development in Chatham
County.
B.A non -discharge surface irrigation wastewater treatment and disposal system Permit (Permit No.
WQ0028552) was issued to Old North State Water Company, LLC April 7, 2016 with an
expiration date of March 31, 2021.
C. The non -discharge wastewater system consists of the construction and operation of wastewater
treatment facilities and conjunctive and non -conjunctive reclaimed water utilization systems.
D.The system treats domestic waste generated by the Brier Creek Subdivision.
E. On August 8t6 and August 20112018, a resident complained that reclaimed water had being sprayed,
with reclaimed wastewater while using the pickleball courts in Brier Chapel between the hours of
630 AM and 9 AM, 7 days a week since they had moved there in April, 2018. The resident also
complained that the grass around the area was always saturated, making it difficult to retrieve balls
that land outside the fence.
F. On August 21", 2018, RRO staff investigated the complaint. On the day of the inspection, staff
noted that:
a zone next to the fence wasirrigating and a light breeze was carrying the reclaimed
wastewater onto the courts making them slick and potentially dangerous to players,

• accessing the courts without being sprayed was difficult, as the reclaimed wastewater
spray was directed over the sidewalk to the court,
• the reclaimed water carries a strong musty odor,
• reclaimed water was being sprayed directly onto the benches in the picnic pavilion,
• the grass around the pickleball court, tennis court, basketball court, pavilion and
surrounding fields was suffering from over irrigation,
• water was actively running into the streets, gutters and stormdrains,
• algae was growing in the concrete gutters, indicating that runoff happens frequently,
• other permitted reclaimed water utilization fields that are not frequented by people were
not being irrigated on the day of the inspection.
G. Permit Condition 11. 1 of permit W00028552 states "The subject non -discharge facilities shall be
effectively maintained and operated at all times so there is no discharge to surface waters, nor any
contravention ofgroundwater or surface water standards. In the event the facilities fail to perform
satisfactorily, including the creation of nuisance conditions due to improper operation and
maintenance, or failure of the utilization areas to adequately assimilate the reclaimed water, the
Permittee shall take immediate corrective.actions including Division required actions, such as the
construction ofadditional or replacement wastewater treatment, disposal, or utilization facilities. "
During the August 21, 2018 site inspection, Mr. Milosh noted the following nuisance conditions:
• a zone next to the fence was irrigating and a light breeze was carrying the water onto the courts
making them slick and potentially dangerous to players,
• accessing the courts without being sprayed was difficult, as the reclaimed water is directed
over the sidewalk to the court,
• reclaimed water was being sprayed directly onto the benches in the picnic pavilion,
• during the inspection, the inspector and residents who were standing on the sidewalk were
sprayed with water when the zones switched.
H. Permit Condition I1I.5 of permit WQ0028552 states "A suitable year- round vegetative cover shall
be maintained on irrigation sites at all times, such that crop health is optimized, allows for even
distribution of reclaimed water, and allows inspection of the irrigation system."
During the August.21, 2018 inspection, the grass around the pickleball court, the tennis court, the
basketball court, the pavilion, and the surrounding fields appeared to be suffering from over
irrigation, and the distressed condition of the fields has contributed to the creation of reclaimed
water ponding and runoff.
Permit Condition III 6 and 7 of permit WQ0028552 states, "Adequate measures shall be taken to
prevent reclaimed water pondtrg in or runofffrom the irrigation sites.", and "Irrigation shall not
be performed during inclement weather or when the ground is in a condition that will cause
ponding or runoff."
Reclaimed water ponding and runoff was noted to be occurring during the August 21, 2018
inspection by the RRO.

J. Permit Condition IV 13 states, "The Permittee shall report by telephone to the Raleigh 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:.......
e. Ponding in or runoff from the wastewater irrigation/reclaimed water utilization sites."
The RRO received no notification of the occurrence of wastewater ponding and runoff occurring
at the facility by the permittee. Algae was observed in the concrete gutters where runoff was noted
to be occurring during the August 21, 2018 inspection, indicating that runoff has been occurring
for an extended period of time with no required notification to the RRO.
K. On August 22, 2018, DWR issued a.Notice of Violation/Notice of Intent to Enforce (NOVINOD
NOV-2018-PG0337 identifying W00028552 permit condition violations.
L. On October 4, 2018, DWR received a response to the NOV/NOI from Michael Myers.
M. Staff costs and expenses associated with detecting the violations, defining their nature and extent
and bringing enforcement action totaled $240.59
Based upon the above Findings of Fact, I make the following:
II. CONCLUSIONS. OF LAW:
A. Old North State Water Company, LLC is a "person" within the meaning of N.C.G.S, 143-
215.6(A) pursuant to N.C.G.S, 143-212(4).
B. Permit No. W00028552 is required by N•.C.G.S. 143-215.1. was issued to Old North State Water
Company, LLC April 7, 2016 with an expiration date of March 31, 2021.
C. Old North State Water Company violated N.C.G.S. 143-215.1 and Permit No. WQ0028552 as
noted during the inspection on August 22, 2018 to the manner and extent as described in Permit
Condition II. 1 when it created nuisance conditions due to improper maintenance:
D. Old North State Water Company violated N.C.G.S. 143-215.1 and PermitNo. W00028552 to the
manner and extent as described -in Permit Condition III. 5 when they failed to maintain suitable
vegetative cover.
E. Old North State Water Company violated N.C.G.S. 143-215.1 and Permit No. W00029552 to the
manner and extent as described in Permit Condition Ill. 6 when they failed to prevent ponding or
runoff of reclaimed water.
F. Old North State Water Company violated N.C.G.S. 143-215.1 and PermitNo. W00028552 to the
manner and extent as described in Permit Condition IV. 13 when they failed to report ponding or
runoff of reclaimed water.
G. N.C.G.S. 143-215.6A(a) provides that a civil penalty of not more than $25,000.00 may be
assessed against a person who fails to apply for or to secure a permit required by N.C.G.S. 143-

215.1, or who violates or fails to act in accordance with the terms, conditions, or requirements of
a permit required by N.C.G.S. 143-215.1 and rules established by the Environmental Management
Commission.
H. N.C.G.S. 143-215.6A (b) provides that if any failure to act as required by the rules is continuous,
a civil penalty of not more than $25,000.00 per violation may be assessed for each day the
violation continues.
I. N.C.G.S, 143-215.3(a)(9) provides that the reasonable costs of any investigation, inspection or
monitoring survey may be assessed against a person who violates any regulations, standards, or
limitations adopted by the Environmental Management Commission or violates any terms or
conditions of any permit issued pursuant to N.C.G.S. 143-215.1, or special order or other
document issued pursuant to N.C.G.S. 143-215.2.
J. Jeff Poupart, Chief of the Division of Water Resources 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 Finding's of Fact and Conclusions of Law, I make the following:
�t]_xy006]`.1;9
A. Pursuant to N.C.G.S. 143-215.6A in determining the amount of the penalty, I have taken into
account the Findings of Fact and Conclusions of Law and considered all the factors listed in
N.C.G.S. 143B-282.1.
Accordingly, Old North State Water Company shall be, and hereby is, assessed a civil penalty of:
$
$ 21 000
$ OaD
for (1) violation of Permit No. W000285S2 Permit Condition II.1. by
creating nuisance conditions.
for (1) violation of Permit No. WQ0028552 Permit Condition III. 5. by
failing to maintain a suitable vegetative cover.
for one (1) violation of Permit No. W00028552 Permit Condition Ill. 6. by
failing to prevent ponding or runoff.
for one (1) violation of Permit No. W00028552 Permit Condition IV. 13 by
failing to report ponding and runoff.
TOTAL CIVIL PENALTY
$ 261.84 Investigation costs assessed

$ 1 ` 41. ] TOTAL AMOUNT DUE
Pursuant to N.C.G.S. 143-215.6A(c), in determining the amount of the penalty I have taken into account
the Findings of Fact and Conclusions of Law and the factors set forth at N.C.G.S. 143B-282.1(b), which
are:
(1) The degree and extent of barm 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 on 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; and
(8) The cost to the State of the enforcement procedures.
IV. NOTICE:
I reserve the right to assess civil penalties and investigative costs for any continuing violations
occurring after the assessment period indicated above. Each day of a continuing violation may be
considered a separate violation subject to a maximum $25,000.00 per day penalty. Civil penalties and
investigative cost may be assessed for any other rules and statutes for which penalties have not yet been
assessed.
V. TRANSMITTAL:
These Findings of Fact, Conclusions of Law and Decision shall be transmitted to Old North State
Water Company, LLC in accordance with N.C.G.S. 143-215.6(A)(d).
(Date) effPoupart., Chief
Water Quality Permitting Section