Rolling Hills C&D Facility Closure Update and Q&A from FDEP

Project Background

The Department of Environmental Protection focuses on compliance as the most effective and quickest route to environmental protection. As such, the department attempted to work with South Palafox Properties, LLC since 2011 to bring the Rolling Hills facility into compliance and correct the ongoing compliance issues at the property. The company failed to comply; therefore, the department determined that revocation of the permit was necessary to prevent additional violations and environmental harm from occurring.

On July 31, 2014 the department revoked the permit for the Rolling Hills Construction and Demolition Debris Disposal Facility. A copy of the revocation can be found here: www.dep.state.fl.us/secretary/news/2014/07/NOR.pdf

On Aug. 4, 2014 South Palafox Properties filed a Petition for Hearing. The administrative hearing was held the week of December 9, 2014. On March 2, 2015, the Administrative Law Judge issued a Recommended Order to uphold the department’s revocation. After a thorough review of the Recommended Order and the filings by
all parties, the Florida Department of Environmental Protection issued a Final Order upholding the revocation of the permit for the operations of the Rolling Hills Construction and Demolition Recycling Center in Escambia County. A copy of the Final Order can be found here: www.dep.state.fl.us/secretary/comm/articles/2015/South%20Palafox%
20FO-Final.pdf

The final order required South Palafox Properties to apply for a closure permit within 30 days and complete closure within 180 days of obtaining that permit. Due to South Palafox Properties failure to do so, the department took the necessary steps to secure the funds from the facility’s financial assurance surety which will be used to properly close the facility, and the department assumed responsibility for properly closing the C&D disposal area.

Department engineers worked with state contractors, surveyors and landfill closure experts to develop a comprehensive closure design based on current site conditions. A properly designed and implemented closure plan is crucial to the long term stability and effectiveness of the site closure. The soil cap must be designed and constructed in a way to abate hydrogen sulfide gases, prevent erosion and convey stormwater runoff to the permitted stormwater system for the facility.

In addition to the administrative action associated with the permit revocation, the department also filed a lawsuit in circuit court seeking injunctive relief and penalties to address various aspects of compliance and long-term care at the site, including odors and South Palafox Properties’ failure to implement the required Remedial Action Plan
to address ground water impacts at the site. Escambia County is a co-plaintiff/plaintiff-intervenor in this case. A trial was held on May 24 and 25. The Final Judgment Granting Injunctive Relief and Assessment of Civil Penalties is available
here: www.dep.state.fl.us/secretary/comm/files/2014-CA-00161%20l.pdf

The department remains committed to upholding Florida’s stringent environmental standards and protecting the health and safety of Florida's residents and the environment.

FAQ

Why was the facility’s permit revoked?
There were eight counts included in the Notice of Revocation issued by the department on July 31, 2014.

1. Violation of surface water quality standards
2. Failure to implement/install Remedial Action Plan
3. Failure to provide adequate financial assurance
4. Respondent failed to provide financial assurance for corrective action
5. Objectionable odor
6. Failure to remove unauthorized waste
7. Disposal of unauthorized waste
8. Facility is outside permitted dimensions

Is the drinking water safe?
Yes. The nearby Wedgewood community is served by the Emerald Coast Utilities Authority public drinking water system. The department thoroughly reviewed monitoring data for the ECUA system, identified the specific ECUA well location that provides water to the community, and found no indication of impacts to drinking water from the
Rolling Hills facility. The department also reviewed data from drinking water sampling conducted at the Wedgewood Community Center by Escambia County, which also indicated that end of tap drinking water met drinking water quality standards. In addition, in response to heightened concerns by the community, the department also conducted independent end of tap sampling at the Wedgewood Community Center and nine individual residences on July 24; results of that independent sampling confirm that the water meets drinking water standards as established by the Safe Drinking Water Act.

What is causing the odor from the facility?
The odor is likely the result of the decomposition of the construction and demolition debris material at the site – primarily from the breakdown of drywall that produces hydrogen sulfide gas and produces a rotten egg like smell. A properly designed and implemented closure plan will remedy this issue.

What’s wrong with the ground water?
The permit issued to Rolling Hills to operate a construction and demolition debris disposal facility required that the facility install ground water monitoring wells to determine if activities at the site impact ground water. Ground water monitoring data reveals that elevated levels of arsenic, boron, ammonia, iron and total dissolved solids have been detected in the monitoring wells.

Are residents exposed to the ground water?
We have no evidence that indicates potential exposure to the ground water. The ground water at the site does not come into contact with the ground water that is used for drinking water and there is no indication that ground water contamination from the Rolling Hills property is affecting the drinking water that serves the community.

What’s being done to address the ground water issues?
The facility was required to submit a recommended remedial action plan to the department. The department approved the recommended plan and issued a Remedial Action Plan Approval Order in July 2013. The facility proposed to pump and treat the ground water in order to address the issues. At the time the permit was revoked, the facility had failed to implement the Remedial Action Plan; however, at this time, the system has been constructed and placed into operation. The construction of the system has not yet been certified complete nor has the effectiveness of the system been determined. South Palafox Properties remains responsible for implementing and operating the remedial action system. The circuit court Final Judgement issued June 7, 2016 ordered South Palafox Properties to continue to perform remediation of the ground water contamination present at the facility pursuant to Chapter 62-780, Florida Administrative Code, and in accordance with the department approved Remedial Action Plan, Remedial Action Plan Approval Order dated July 3, 2013 and Remedial Action Plan Modification Approval Order dated January 12, 2016 until a Site Rehabilitation Completion Order is issued by the department pursuant to Chapter 62-780, Florida Administrative Code.

What are the surface water impacts from the facility?
The waters surrounding the facility are designated Class III fresh waters. Water quality monitoring at the facility found the surface water samples do not currently meet the Class III fresh surface water quality standards for iron, copper, lead, zinc and mercury. The circuit court Final Judgement requires South Palafox Properties to continue to remediate all surface water quality exceedances to regain compliance with the surface water criteria listed in Rules 62-302.500 and 62-302.530, Florida Administrative Code. The Remedial Action Plan is expected to correct this issue.

When will closure work begin?
The department expects closure work to begin on-site mid to late August and anticipates that closure will be complete late December. Initial activities include installing erosion and sediment controls, such as silt fencing, staging cover material and shaping the waste to achieve appropriate slopes for stability and stormwater management.

Who will pay for the closure of the facility?
The facility had a financial assurance bond in place for closure in the amount of $651,633. The department has secured the funds from the facility’s closure bond and will use those funds for closure. The current closure cost is estimated to be $1.6 million. The department has assumed responsibility for closure and will seek reimbursement from South Palafox Properties in accordance with the Final Judgement issued June 7, 2016, which requires South Palafox Properties to pay the difference between the existing closure financial assurance amount and the amount of the cost
estimate for closure of the facility in its current condition.

What will happen after the facility has been closed?
The Final Judgement issued June 7, 2016, orders South Palafox Properties to perform long-term care monitoring and maintenance of the facility in accordance with Rule 62-701.730(10) Florida Administrative Code, for a minimum of five years. In the event that South Palafox Properties fails to perform long term care monitoring and maintenance of the facility as required, the department and its agent(s) will have access to the property to perform long term care maintenance activities as needed.