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July 17, 2017

Mr. Jim Covin Expedited Payment Program Los Angeles Regional Water Quality Control Board 320 West 4th Street, Suite 200 Los Angeles, CA 90013

RE: Settlement Offer No. R4-2017-0103

Mandalay Generating Station 393 N. Harbor Blvd .

Oxnard, CA 93035 Tel: (805) 984-5291

Fax: (805) 984-5 295

NRG California South LP. -National Pollution Discharge Elimination System - Permit No. CA0001181, Order R4-2015-0201

Dear Mr. Covin:

On June 28, 2017 the Los Angeles Regional Water Quality Control Board (RWQCB) informed Mandalay Generating Station (Mandalay), owned by NRG California South LP, of a Notice of Violation for RWQCB Order R4-2015-0201, NPDES Permit Number CAOOOl 181. Mandalay's signed Acceptance of Conditional Resolution and Waiver of Right to Hearing is enclosed. The $3,000 cashier's check for the Expedited Payment Amount is being forwarded to the State Water Resources Control Board under separate cover.

If you have any questions or concerns, please contact Scott Warnock at (805) 986-7218 or scott. warnoc k@nrg.com.

Sincerely, Mandalay Generating Station NRG California South LP

Tom Di Ciolli Plant Manager Authorized Agent

Enclosures

cc:

State Water Resources Control Board ATTN: ACL Payment Division of Administrative Services, Accounting Branch 1001 I Street, 18th Floor Sacramento, CA 95814

Settlement Offer No. R4-2017-0103 Cl No. 2093, NPDES Permit No. CA0001181

ACCEPTANCE OF CONDITIONAL RESOLUTION AND WAIVER OF RIGHT TO HEARING; (proposed) ORDER

NRG California South LP Settlement Offer No. R4-2017-0103 NPDES Permit No. CA0001181

By signing below and returning this Acceptance of Conditional Resolution and Waiver of Right to Hearing (Acceptance and Waiver) to the Los Angeles Regional Water Quality Control Board (Regional Board), the NRG California South LP (Permittee) hereby accepts the "Offer to Participate in Expedited Payment Program" and waives the right to a hearing before the Regional Board to dispute the allegations of violations described in the Notice of Violation (NOV), which is attached hereto as Exhibit "1" and incorporated herein by reference.

The Permittee agrees that the NOV shall serve as a complaint pursuant to Article 2.5 of the California Water Code and that no separate complaint is required for the Regional Board to assert jurisdiction over the alleged violations through its Chief Prosecutor. The Permittee agrees to pay the penalties required by California Water Code section 13385, in the sum of $3,000 (Expedited Payment Amount), which shall be deemed payment in full of any civil liability pursuant to Water Code sections 13385 and 13385.1 that otherwise might be assessed for the violations described in the NOV. The Permittee understands that this Acceptance and Waiver waives its right to contest the allegations in the NOV and the amount of civil liability for such violations.

The Perrnittee understands that this Acceptance and Waiver does not address or resolve liability for any violation that is not specifically identified in the NOV.

Upon execution by the Permittee, the completed Acceptance and Waiver shall be returned to:

Jim Covin, Enforcement Unit Expedited Payment Program Los Angeles Regional Water Quality Control Board 320 West 4th Street, Suite 200 Los Angeles, California 90013

The Permittee understands that federal regulations set forth at title 40, Code of Federal Regulations, section 123.27(d)(2)(iii) require the Regional Board to publish notice of and provide at least thirty (30) days for public comment on any proposed resolution of an enforcement action addressing NPDES permit violations. Accordingly, this Acceptance and Waiver, prior to execution by the Regional Board Executive Officer, will be published as required by law for public comment.

If no comments are received within the notice period that causes the Regional Board Executive Officer to question the Expedited Payment Amount, the Regional Board Executive Officer will execute the Acceptance and Waiver.

The Permittee understands that if significant comments are received in opposition to the Expedited Payment Amount, the offer on behalf of the Regional Board to resolve the violations set forth in the NOV may be withdrawn. In that circumstance, the Permittee will be advised of the withdrawal and an administrative civil liability complaint may be issued and the matter may be set for a hearing before the Regional Board. For such a liability hearing, the Permittee

- 1 -

Settlement Offer No. R4-2017-0103 Cl No. 2093, NPDES Permit No. CA0001181

understands that this Acceptance and Waiver executed by the Permittee will be treated as a settlement communication and will not be used as evidence in that hearing.

The Permittee further understands that once the Acceptance and Waiver is executed by the Regional Board Executive Officer, the full payment required by the deadline set forth below is a condition of this Acceptance and Waiver. In accordance with California Water Code section 13385(n)(1) and California Water Code section 13385.1(c)(1), funds collected for violations of effluent limitations and reporting requirements pursuant to sections 13385 and 13385.1 shall be deposited in the State Water Pollution Cleanup and Abatement Account. Accordingly, the $3,000 liability shall be paid by a cashiers or certified check made out to the "State Water Pollution Cleanup and Abatement Account". The payment must be submitted to the State Water Resources Control Board no later than thirty (30) calendar days after the date the Acceptance and Waiver is executed by the Regional Board Executive Officer.

Please mail the check to:

State Water Resources Control Board ATTN: ACL PAYMENT Division of Administrative Services, Accounting Branch 1001 I Street, 15th Floor, [95814] P.O. Box 1888 Sacramento, California 95812-1888

I hereby affirm that I am duly authorized to act on behalf of and to bind the Permittee in the making and giving of this Acceptance and Waiver.

NRG California South LP

By: /--) ~ •'

(Signed Name)

Tom Di Ciolli

(Printed or Typed Name) Authorized Agent

7.- /7-.::Lc,/7

(Date)

Plant Manager

(Title)

IT IS SO ORDERED PURSUANT TO CALIFORNIA WATER CODE SECTION 13385

By: Samuel Unger, P.E. Executive Officer

(Date)

-2-

Settlement Offer No. R4-2017-0103

Violation Monitoring Violation Type

Date Period

07/08/16 3rd Quarter 2016 Daily Maximim 10/31/16 4th Quarter 2016 30 Day Average 12/01/16 4th Quarter 2016 Single Sample Max

EXHIBIT "1" - NOTICE OF VIOLATION Effluent Limit Violations

Reported ! Permit Parameter Units

Value Limit :

Copper 88.8 38 µg/L TSS 34.9 30 %

Total Coliform 160,000 1,000 MPN/100ml

I J

Pollutant Category

2 1

OEV

Mandalay Generating Station Cl No. 2093

0 • Water Code Yo Seriou~/ Section Penalty

Exceeded Chrome 13385

134% Serious {h)1 $3,000 16% Chronic (i) 1 $0 NA Chronic (i) 1 $0

Total $3.000

1 of 1

The Bank of New York Mellon Treasury Services Client Support Division Room 154-1320 500 Ross Street Pittsburgh, PA 15262-0001

......... .;-~~

NRG-MANDALAY GENERATING STATION ATTN S JOHNSTON 393 N HARBOR BLVD OXNARD, CA 93035

6257 0701

PAYMENT SUMMARY

REF#: CHECK SERIAL#:

CS-2254974 0714174974

PHONE NUMBER: CHECK DATE:

888-426-0035 07/14/17

Attached please find a cashier's check 0714174974 from The Bank of New York Mellon in the amount of $3,000.00 made payable to STATE WATER RESOURCS CONTROL BOARD as requested by lloyd Whittington from NRG CALIFORNIA SOUTH LP on 07/14/17.

If you have any questions or comments, please call your regular customer service contact or:

1-888-426-0035 between the hours of 8:00 a.m. and 6:00 p.m. EST

When calling, please refer to case number CS-2254974. Thank you for your business.

Treasury Services Client Support Division The Bank of New York Mellon

(Detach Here)

· . THE 8.ANK OF NEW YORK MELLON Treasury Services Client S.up,port 9 ashier's Checking Account . .

PAY ... THREE THOUSAND DOLLARS DO CENTS

TO THE ORDER OF:

STATE WATER RESOURCS CONTROL BOARD

THE BANK OF NEW YORK MELLON PITTSBURGH , PENNSYLVANIA

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