NC Department of Labor officials discover illegal mine in western NC, DEQ seeks halt to operations

Officials from the N.C. Department of Labor discovered an illegal mine earlier this year when federal officials asked them to provide safety training at the Mitchell County site.

A Department of Labor official realized that the mine had "multiple irregularities," according to a news release from the department, and questioned whether it had the necessary environmental permits.

Mine employees were unable to produce any permits, and the Department of Labor employee informed the N.C. Department of Environmental Quality of the operation.

Documents show that state officials have been working for months to bring the mine, located about two miles northwest of Poplar on Highway 197, into compliance.

That effort is ongoing, as DEQ documents indicate that mine operator Horizon 30 continued to violate state rules even after officials found they were operating without a permit.

DEQ inspectors have visited the site at least three times, each time confirming that mine operations are ongoing.

During the second inspection, on May 27, DEQ staff met with Horizon 30's Brent Fernandes.

According to an inspection report, Fernandes told the inspector that he'd been discussing the situation with Division of Energy, Mineral and Land Resources Deputy Director Adam Parr and that he'd told Parr to fine the operation the maximum $5,000 a day allowed under North Carolina state law.

Now, the N.C. Department of Justice is asking a N.C. Superior Court judge to issue an injunction against the operation, requiring it to either halt operations until it can obtain the necessary permits or end operations altogether. The state is also asking the judge to require Horizon 30 to establish ground cover over disturbed areas while it obtains a permit or, if it chooses to cease operations, immediately stabilize any impacted areas.

"If left uncorrected there is a substantial possibility that the mining would result in imminent peril to life or danger to property or to the environment," Carolyn McLain, the Department of Justice attorney, wrote.

The case will be heard Monday in Boone.

What Horizon 30's application says

A mine permit application Horizon 30 filed with DEQ on March 26 shows that the company wants to operate on about 51 acres of land for a project it calls the Carter Quarry. Actual mining would take place on about 23.3 acres of the site, per the application.

Horizon 30 said it planned to dig an average of 130 feet down, with maximum depths reaching 550 feet using front-end loaders and trucks. Blasting would also be part of mine operations, according to the permit.

The company planned to produce solid granite ballast and crusher run rock, a mixture of crushed stone and dust that is often used in road construction.

N.C. Division of Energy, Mineral and Land Resources

The application indicates that in addition to the mining permit, Horizon 30 would also need to obtain an air permit because the rock crushing operation would create emissions.

Horizon 30's mine site abuts the Nolichucky River, a tributary of the French Broad. Helene destroyed a portion of CSX's railroad through the Nolichucky River Gorge, and Horizon 30 officials told DEQ the materials they are digging up will be used to restabilize the railbed.

"H30 relies upon the emergency permits, authorizations, waivers and other applicable allowances for services in support of the Emergency Railway Repairs and also the Executive Orders of the President of the United States of America, including those in support of the America First initiative and energy independence, as well as prior and concurrent emergency response directives," Sean Chipman, the company's CFO, wrote in a May 16 letter to DEMLR's Parr.

North Carolina officials found that argument unpersuasive, noting in the July complaint that Chipman failed to point to any specific emergency permits, authorizations Executive Orders or waivers that would allow the company to operate a mine without first obtaining permission from the state.

The Horizon 30 case is not the first time CSX's Helene repairs have run afoul of regulators. In December, the U.S. Army Corps of Engineers ordered CSX to stop dredging the river for rocks and fill because it was disturbing the riverbed.

Timeline of Horizon 30's mining activities

Here's a timeline of events, based on a public hearing report and the Notices of Violation issued by the Division of Energy, Mineral and Land Resources. It's unclear from documents when the mine began operations:

• January: DEQ learns of a potential unpermitted mine operation near Poplar, likely via the N.C. Department of Labor.
• Feb. 6: Staff from DEQ's Division of Energy, Mineral and Land Resources observe unpermitted mining taking place.
• March 7: DEQ sends the property's owners a notice saying about four acres of land have been disturbed at the site, including the removal of dirt and installation of roads. The notice says work needs to stop until the facility obtains a mining permit from the state.
• April 11: Horizon 30 files its mining application. DEQ deems it incomplete because the required fees were not included.
• April 23: DEQ inspectors visit the site and find about 10 acres of land disturbed. They verbally tell mine employees to cease operations until they obtain a permit.
• April 30: DEQ issues a Notice of Violation against Horizon 30, formally telling it to cease operations.
• May 16: Horizon 30 pays the application fees needed to process the permit.
• May 27: DEQ again inspects the site, finding that additional land has been disturbed.
• June 5: DEQ issues a Notice of Continuing Violation, once again urging Horizon 30 to stop operations.
• July 16: The N.C. Department of Justice brings a complaint on behalf of DEMLR, seeking an injunction to halt operations at the site until Horizon 30 obtains a permit.
• Aug. 11: A N.C. Superior Court judge is set to hear the N.C. Department of Justice's motion for an injunction against Horizon 30.