regan Kate Brown, Governor

February 28, 2018

CERTIFIED MAIL: 710163010000060286961

Diamond Hill L.L.C. c/o Bmt Shetman, Registered Agent 32921 Diamond Hill Road Harrisburg, OR 97446

Re: Notice of Civil Penalty Assessment and Order Case No. WQ/D-WR-2017-246

Department of Environmental Quality Office of Compliance and Enforcement

700 NE Multnomah Street, Suite 600 Portland, OR 97232

(503) 229-5382 FAX (503) 229-5787

TTY711

This letter is to inform you that the Oregon Depattment of Environmental Quality (DEQ) has issued you a civil penalty of$2,627 for violations of your National Pollutant Discharge Elimination System (NPDES) waste discharge permit. You failed to conduct weekly monitoring of lagoon water depth at your wastewater treatment facility that serves Diamond Hill RV Park in Hanisburg, Oregon. The violations occmTed for 27 weeks during 2016 and 2017.

DEQ issued this penalty because conducting mandatory monitoring and repmting is an important permit obligation. Without this infmmation, it is difficult for you and DEQ to evaluate the effectiveness of the facility's wastewater treatment system.

If you wish to appeal this matter, DEQ must receive a request for a hearing within 20 calendar days from your receipt of this letter. The hearing request must be in writing. Send your request to DEQ Office of Compliance and Enforcement: Via mail - 700 NE Multnomah Street, Suite 600, Pmtland, Oregon 97232 Via email - DEQappeals@deq.state.or.us Via fax - 503-229-5100 Once DEQ receives your request, we will arrange to meet with you to discuss this matter. If DEQ does not receive a timely written hem·ing request, the penalty will become due. Alternatively, you can pay the penalty by sending a check or money order to the above address.

The attached Notice fmther details DEQ's reasons for issuing the penalty and provides further instructions for appealing the penalty. Please review and refer to it when discussing this case withDEQ.

DEQ may allow you to resolve part of your penalty through the completion of a Supplemental Environmental Project (SEP). SEPs m·e environmental improvement projects that you sponsor instead of paying a penalty. Fmther information is available by calling the number below or at http://www. oregon. gov I deq/Regulations/Pages/SEP .aspx.

Diamond Hill L.L.C. Case No. WQ/D-WR-2017-246 Page 2

DEQ's rules are available at http://www.oregon.gov/deq/Regulations/Pages/Statutes.aspx or by calling the number below.

If you have any questions, please contact DEQ Environmental Law Specialist Esther Westbrook, at (503) 229-5374. You may call toll-free within Oregon at 1-800-452-4011, extension 5374.

Sincerely,

Sarah G. Wheeler, Acting Manager Office of Compliance and Enforcement

Enclosures

cc: Secret Spencer, Manager, Diamond Hill L.L.C., P.O. Box 706, Hanisburg, OR 97440 Julie Ulibarri, Eugene Office, DEQ Ranei Nomura, Eugene Office, DEQ John Koestler, WQ, HQ Shaumae Hall, Accounting, DEQ

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BEFORE THE ENVIRONMENTAL QUALITY COMMISSION

OF THE STATE OF OREGON

INTHEMATTEROF: ) DIAMOND HILL L.L.C., ) an Oregon Limited Liability Company )

) Respondent. )

NOTICE OF CIVIL PENALTY ASSESSMENT AND ORDER

CASE NO. WQ/D-WR-2017-246

7 I. AUTHOIDTY

8 The Department of Environmental Quality (DEQ) issues this Notice of Civil Penalty Assessment

9 and Order (Notice) pursuant to Oregon Revised Statutes (ORS) 468.100 and 468.126 through 468.140,

10 ORS Chapters 183 and 468B, and Oregon Administrative Rules (OAR) Chapter 340, Divisions 011,012,

11 and 045.

12 II. FINDINGS OF FACT

13 I. Respondent operates a wastewater treatment system located at 32917 Diamond Hill Drive in

14 Harrisburg, Linn County, Oregon (the Facility).

15 2. On January 23, 2014, DEQ issued National Pollutant Discharge Elimination System Waste

16 Discharge Permit No. I 01557 (the Permit) to Respondent that allowed it to discharge treated

17 wastewater from the Facility to Little Muddy Creek, waters of the state, in conformance with the

18 requirements, limits and conditions set forth in the Permit. The Permit expired on December 31, 2017,

19 but DEQ administratively extended it. The Permit was in effect at all material times.

20 3. Schedule B, Table B2 of the Permit requires Respondent to monitor lagoon water depth

21 weekly.

22 4. According to its 2016 discharge monitoring repmis, Respondent did not monitor lagoon

23 water depth for the month of May 2016 (four weeks), the week of July 3, 2016, the week of August 14,

24 2016, the week of September 11,2016, the week of September 18,2016, and the month of October

25 2016 (four weeks).

26 /Ill

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NOTICE OF CIVIL PENALTY ASSESSMENT AND ORDER CASE NO. WQ/D-WR-20I7-246 Page I of3

I 5. According to its 2017 discharge monitoring reports, Respondent did not monitor lagoon

2 water depth for the month of May 2017 (five weeks), the month of June 2017 (four weeks), the month

3 ofJuly 2017 (four weeks), the week ofJuly 30, 2017, and the week of August 6, 2017.

4 III. CONCLUSION

5 Respondent failed to monitor lagoon water depth weekly as required in Schedule B, Table

6 B2 of its Permit for a total of27 weeks during 2016 and 2017, in violation of ORS 468B.025(2), as

7 described in Section II, Paragraphs 1-5 above. These are Class I violations according to OAR 340-012-

8 0055(1 )( o ). DEQ hereby assesses a $2,627 civil penalty for these violations.

9 IV. ORDER TO PAY CIVIL PENALTY

10 Based upon the foregoing FINDINGS OF FACTS AND CONCLUSION, Respondent is hereby

II ORDERED TO:

12 Pay a total civil penalty of$2,627. The determination of the civil penalty is attached as Exhibit

13 No. I and incorporated as part of this Notice.

14 If you do not file a request for hearing as set forth in Section V below, your check or money

15 order must be made payable to "State Treasurer, State of Oregon" and sent to the DEQ, Business

16 Office, 700 NE Multnomah Street, Suite #600, Portland, Oregon 97232. Once you pay the penalty,

17 the Findings of Fact, Conclusions and Order become final.

18 V. NOTICE OF RIGHT TO REQUEST A CONTESTED CASE HEARING

19 You have a right to a contested case hearing on this Notice, if you request one in writing. You

20 must ensure that DEQ receives the request for hearing within 20 calendar days from the date you

21 receive this Notice. If you have any affirmative defenses or wish to dispute any allegations offact in

22 this Notice or attached exhibit, you must include them in your request for hearing, as factual matters

23 not denied will be considered admitted, and failure to raise a defense will be a waiver of the defense.

24 (See OAR 340-011-0530 for ftniher infmmation about requests for hearing.) You must send the request

25 for hearing to: DEQ, Office of Compliance and Enforcement- Appeals, either via mail to 700 NE

26 Multnomah Street, Suite #600, Portland, Oregon 97232, or via e-mail to

27 DEQappeals@deq.state.or.us, or via fax to 503-229-5100. An administrative law judge employed by

NOTICE OF CIVIL PENALTY ASSESSMENT AND ORDER CASE NO. WQ/D-WR-20I7-246 Page 2 of3

1 the Office of Administrative Hearings will conduct the hearing, according to ORS Chapter 183, OAR

2 Chapter 340, Division 011 and OAR 137-003-0501 to 0700. You have a right to be represented by an

3 attorney at the hearing, or you may represent yourself unless you are a corporation, agency or

4 association.

5 Active duty service-members have a right to stay proceedings under the federal Service

6 members Civil Relief Act. For more information, please call the Oregon State Bar at 1-800-

7 452-8260 or the Oregon Military Department at 1-800-452-7500. Additional information can be found

8 online at the United States Armed Forces Legal Assistance (AFLA) Legal Services Locator website

9 http :1 /legalassistance.law. af.mil/ content/locator. php.

10 If you fail to file a request for hearing in writing within 20 calendar days of receipt of the

11 Notice, the Notice will become a final order by default without further action by DEQ, as per OAR

12 340-011-0535(1). If you do request a hearing but later withdraw your request, fail to attend the hearing

13 or notify DEQ that you will not be attending the hearing, DEQ will issue a final order by default

14 pursuant to OAR 340-011-0535(3). DEQ designates the relevant portions of its files, including

15 infmmation submitted by you, as the record for purposes of proving a prima facie case.

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Sarah G. Wheeler, Acting Manager Office of Compliance and Enforcement

NOTICE OF CIVIL PENALTY ASSESSMENT AND ORDER CASE NO. WQ/D-WR-2017-246 Page 3 of3

EXHIBIT NO. I

FINDINGS AND DETERMINATION OF RESPONDENT'S CIVIL PENALTY PURSUANT TO OREGON ADMINISTRATIVE RULE (OAR) 340-012-0045

VIOLATION:

CLASSIFICATION:

MAGNITUDE:

Failure to conduct monitoring in violation of Schedule B, Table 2B ofNPDES Permit No. 101557 and ORS 468B.025(2).

These are Class I violations pursuant to OAR 340-012-0055(l)(o).

The magnitude of the violation is moderate pursuant to OAR 340-012-0130(1), as there is no selected magnitude specified in OAR 340-012-013 5 applicable to this violation, and the information reasonably available to DEQ does not indicate a minor or major magnitude.

CIVIL PENALTY FORMULA: The formula for determining the amount of penalty of each violation is: BP + [(0.1 x BP) x (P + H + 0 + M +C)]+ EB

"BP" is the base penalty, which is $1,500 for a Class I, moderate magnitude violation in the matrix listed in OAR 340-012-0140(4)(b)(A)(ii) and applicable pursuant to OAR 340-012-0140( 4)(a)(F)(i) because Respondent has an NPDES permit for a private wastewater treatment facility with a permitted flow ofless than two million gallons per day.

"P" is whether Respondent has any prior significant actions, as defmed in OAR 340-012-0030(19), in the same media as the violation at issue that occun·ed at a facility owned or operated by the same Respondent, and receives a value ofO according to OAR 340-012-0145(2)(a)(A), because there are no prior significant actions.

"H" is Respondent's history of conecting prior significant actions and receives a value of 0 according to OAR 340-012-0145(3)(c), because there is no prior history.

"0" is whether the violation was repeated or ongoing and receives a value of 3 according to OAR 340-012-0145(4)(c), because there were fi·om seven to 28 occ\llTences of the violation. Respondent failed to monitor lagoon depth for twelve weeks between May 2016 and October 2016, and fifteen weeks between May 2017 and August 2017, which is 27 occunences of the violation.

"M" is the mental state of the Respondent and receives a value of 4 according to OAR 340-012-0145(5)(c), because Respondent's conduct was negligent. Respondent holds an NPDES discharge permit, which expressly requires that Respondent monitor the water depth of its lagoons on a weekly basis. Additionally, Respondent previously received a warning letter for monitoring violations, including failure to monitor lagoon depth, in December 2015. When Respondent continued to operate its wastewater lagoons without conducting the required monitming, it failed to take reasonable care to avoid a foreseeable risk that it would violate its permit.

Case No. WQ/D-WR-2017-246 Exhibit No. 1 Page 1 DiamondHiH17M246Ex.doc

"C" is Respondent's efforts to correct or mitigate the violation and receives a value of 0 according to OAR 340-012-0145(6)(a)(D), because the violation or the effects of the violation could not be corrected or minimized.

"EB" is the approximate dollar value of the benefit gained and the costs avoided or delayed as a result of the Respondent's noncompliance. It is designed to "level the playing field" by taking away any economic advantage the entity gained and to deter potential violators from deciding it is cheaper to violate and pay the penalty than to pay the costs of compliance. In this case, "EB" receives a value of$77. This is the amount Respondent gained by avoiding spending a total of$135 to monitor and record its lagoon water depth for twelve weeks in 2016 and fifteen weeks in 2017. This "EB" was calculated pursuant to OAR 340-012-0150(1) using the U.S. Environmental Protection Agency's BEN computer model.

PENALTY CALCULATION: Penalty= BP + [(0.1 x BP) x (P + H + 0 + M +C)]+ EB = $1,500 + [(0.1 X $1,500) X (0 + 0 + 3 + 4 + 0)) + $77 = $1,500 + [$150 X 7) + $77 = $1,500 + $1,050 + $77 = $2,627

Case No. WQ/D-WR-2017-246 Exhibit No. 1 Page 2 DiamondHilll7M246Ex.doc