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NC DENR Imposes Largest-ever Penalty Against Duke In Sutton Case

By Jenny Callison, posted Mar 10, 2015
Groundwater contamination from coal ash at the Sutton Plant near Wilmington has resulted in the largest penalty for environmental damages ever levied by the state, according to an announcement Tuesday afternoon from the N.C. Department of Environment and Natural Resources.

The $25.1 million fine against Duke Energy Progress, is “based on the extent of impacts to groundwater, the characteristics of the constituents causing the impacts and the duration of the violations,” the news release stated, adding that the amount of the fine also reflects the state’s investigative costs and a civil penalty formula taken from state groundwater laws that allows fines to be assessed by multiplying the number of days an individual contaminant leached into groundwater by a civil penalty for each violation.

“Today’s enforcement action continues the aggressive approach this administration has taken on coal ash,” DENR secretary Donald van der Vaart said in the release. “In addition to holding the utility accountable for past contamination we have found across the state, we are also moving expeditiously to remove the threat to our waterways and groundwater from coal ash ponds statewide.”

Duke Energy officials, in a statement Tuesday afternoon, said the utility is "working quickly to close ash basins, including those at Sutton, which will help address impacts to groundwater."

The company stated also that it hoped DENR "will move soon to provide the necessary approvals so we can begin moving ash at Sutton and other sites."

In the company's statement, Duke officials said they have no indication of any off-site groundwater impacts not already addressed that would pose a health concern for neighbors.

"We have been monitoring groundwater at the Sutton Plant ash basins since 1990 and routinely report that data to state regulators. We’re currently following a state-directed process to enhance groundwater assessments at our facilities," the statement said. "The information will add clarity to current data, inform closure decisions and help determine any future monitoring requirements."

One local official, however, expressed his approval of DENR's action.

New Hanover County Board of Commissioners chairman Jonathan Barfield, reached for comment Tuesday afternoon, said the fine “shows our state’s commitment to protecting our environment, both water and air. I commend the secretary and his staff for making a bold statement.”

DENR, according to its release, determined that Duke Energy allowed a host of coal ash contaminants to leach into the groundwater at the Sutton facility for several years, in at least a few cases. To calculate the civil penalty, officials used data from water samples taken at monitoring wells and multiplied the number of days each individual contaminant leached into groundwater.

One pollutant found was thallium, a heavy metal that is considered a greater public health risk, the release stated. State officials determined that Duke allowed the element to leach into groundwater at the Sutton plant for 1,668 days, so they multiplied that number by the civil penalty amount of $5,000 per day. The result was a fine of more than $8.3 million for thallium alone, according to the release.

Under the North Carolina constitution, proceeds from Tuesday’s fine will go to a statewide fund for public schools, the release stated.

Tuesday’s fine was issued by a “Findings and Decisions and Assessment of Civil Penalties” to Duke Energy Progress from Jay Zimmerman, director of the N.C. Division of Water Resources. Under state law, Duke Energy has 30 days to respond to the fine and may choose to appeal it to the N.C. Office of Administrative Hearings.

More about coal ash investigation at the Sutton plant as well as other locations can be found here.
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