Phase I ESA Dicey Mills 430 Neisler Street Shelby, North Carolina H&H Job No. DCY-001 July 29, 2016 #C-1269 Engineering #-245 Geology Phase I ESA Dicey Mills 430 Neisler Street Shelby, North Carolina H&H Job No. DCY-001 Table of Contents 1.0 Executive Summary ................................................................................................................1 1.1 Property Summary .................................................................................................................1 1.2 Findings, Opinions, and Conclusions ....................................................................................2 2.0 Introduction .............................................................................................................................8 2.1 Purpose and Scope of Services ..............................................................................................8 2.2 Methodology ..........................................................................................................................8 2.3 Limitations and Exceptions of Assessment ...........................................................................9 2.4 Special Terms and Conditions ...............................................................................................9 2.5 Data Gaps and Limitations ..................................................................................................10 3.0 Site and Area Description ....................................................................................................11 3.1 General Site Description and Use ........................................................................................11 3.2 Site Structures and Improvements .......................................................................................11 3.3 Property Owner, Manager, and Occupant............................................................................12 3.4 Vicinity Characteristics .......................................................................................................12 3.5 Physical Setting ...................................................................................................................12 4.0 Records Review .....................................................................................................................15 4.1 Standard Environmental Record Sources – Federal, State and Local .................................15 4.2 Regulatory Agency File and Records Review .....................................................................17 4.3 Interviews ............................................................................................................................19 4.4 Historical Use Information ..................................................................................................20 5.0 Site Reconnaissance ..............................................................................................................24 5.1 Hazardous Substances .........................................................................................................24 5.2 Storage Tanks and Sumps ....................................................................................................26 5.3 Water and Wastewater Issues ..............................................................................................27 i S:\AAA-Master Projects\Dicey Mills - DCY\Report\Dicey Mills Phase I ESA.doc 5.4 Indications of PCBs .............................................................................................................28 5.5 Indications of Waste Disposal .............................................................................................29 5.6 Surface Conditions ..............................................................................................................30 5.7 Stormwater and Flood Information .....................................................................................30 6.0 Signatures of Environmental Professionals ........................................................................31 7.0 Qualifications of Environmental Professionals Conducting the Phase I ESA ................32 List of Figures Figure 1 Site Location Map Figure 2 Site Map List of Appendices Appendix A User Questionnaire Appendix B Cleveland County Tax Record Appendix C EDR Reports Appendix D Supporting Documentation Appendix E Site Photographs Appendix F Curriculum Vitae ii S:\AAA-Master Projects\Dicey Mills - DCY\Report\Dicey Mills Phase I ESA.doc Phase I ESA Dicey Mills 430 Neisler Street Shelby, North Carolina H&H Job No. DCY-001 1.0 Executive Summary Hart & Hickman, PC (H&H) has performed a Phase I Environmental Site Assessment (ESA) in conformance with the scope and limitations of ASTM Practice E 1527-13 on the Dicey Mills property located at 430 Neisler Street in Shelby, Cleveland County, North Carolina (Site). Any exceptions to, or deletions from, this practice are described in this report. 1.1 Property Summary H&H has provided a brief summary of the current and former uses of the Site and nearby area below: Site • The Site consists of three parcels that total 23.893 acres and is developed with an approximately 160,000 sq ft manufacturing building, an approximately 4,000 sq ft storage building, four process water ponds, one freshwater pond, and associated parking areas. Dicey Mills currently owns the Site, which is leased to Valdese Weavers for yarn manufacturing. • Historical resources were available from 1937 to the present. In the earliest historical resource reviewed, a 1937 aerial, the eastern portion of the Site was developed with a residence and associated outbuildings, and the remainder of the Site was agricultural land. The Site was redeveloped in the late 1950s with portions of the current building. The building was expanded over time until the mid-1990s. From the late 1950s to the early 2000s, the Site building was utilized for yarn manufacturing, olefin filament yarn extrusion, and textile dyeing/printing operations. The Site contained weaving, fabric 1 S:\AAA-Master Projects\Dicey Mills - DCY\Report\Dicey Mills Phase I ESA.doc finishing, olefin filament yarn extrusion from the early 2000s until March 2015. Since that time, the Site has been used only for olefin filament yarn extrusion and yarn production. Nearby Area • Adjacent properties were residential, agricultural, and vacant land in the earliest historical resource reviewed. Development of the east adjacent properties for commercial operations occurred in the 1970s through the early 2000s, and a north adjacent property was developed as a solar farm in 2016. Remaining adjacent properties are currently residential and vacant land with the First Broad River to the west. 1.2 Findings, Opinions, and Conclusions The purpose of a Phase I ESA is to identify Recognized Environmental Conditions (RECs) in connection with the property. RECs are environmental conditions that include the presence or likely presence of hazardous substances or petroleum products on the property that indicate an existing release, a past release, or a material threat of a release in structures on the property, or into the ground, groundwater, or surface water on the property. The ASTM 1527-13 standard also identifies two subsets of RECs called controlled RECs (CRECs) and historical RECs (HRECs). A CREC is a REC resulting from a past release of hazardous substances or petroleum products that has been addressed to the satisfaction of the applicable regulatory authority, with hazardous substances or petroleum products allowed to remain in place subject to the implementation of required controls (such as institutional or engineering controls). A HREC is a REC resulting from a past release of hazardous substances or petroleum products that has been addressed to the satisfaction of the applicable regulatory authority or meeting unrestricted use criteria established by a regulatory authority without subjecting the property to required controls. Our findings regarding RECs are based upon our review of historical records and maps; review of regulatory database records and/or regulatory agency files; interviews with persons familiar 2 S:\AAA-Master Projects\Dicey Mills - DCY\Report\Dicey Mills Phase I ESA.doc with the property; observations during the site reconnaissance; and data evaluation. Based upon our completion of Phase I ESA activities, H&H has determined the following: This assessment has revealed no evidence of recognized environmental conditions (RECs) in connection with the property, with the exception of the following: • The Site building was utilized for yarn manufacturing and textile dyeing/printing from the late 1950s to early 2000s (approximately 45 years). The Site contact reported that chemical usage associated with the former dyeing/printing operations included the use of solvent based dyes. Multiple floor drains were identified in the former dye and printing areas that collect wastewater from Site operations. This historically included wastewater from the dye house and printing operations and currently includes wastewater from the active operations including the yarn extrusion area, small air compressor room floor drain, boiler room, and yarn weaving area. H&H observed standing black fluid in a floor drain in the small air compressor room, active discharge of process water from the yarn manufacturing operations, and historic staining in the vicinity of the floor drains associated with former operations in the dye house/printing area. H&H considers the