2. The interior banks of the holding pond levees show signs of excessive erosion. This is a violation of Part II, Condition 12 of your permit.

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1 March 28, 2013 Kirby Pierce, Owner Pierce Hog Farm, Inc Polk 63 Mena, AR Re: tate Agri Compliance Inspection (Polk Co) AFIN No: tate Permit No: 2555-WR-2 Dear Mr. Pierce: On March 27, 2013, I performed a routine compliance inspection of your facility in accordance with the provisions of the Arkansas Water and Air Pollution Control Act and the regulations promulgated thereunder. This inspection revealed the following violations: 1. A leak in the flush line is allowing liquid manure from the holding pond to surface on the premises and a leak in a collection line was observed behind one of the barns. A small amount of runoff from both leaks was observed with none from either entering the waters of the tate (see photos 1 and 2). This is a violation of Part II, Condition 2 of your permit. Neither of these leaks was reported as required by Part III, Condition 13 of your permit. 2. The interior banks of the holding pond levees show signs of excessive erosion. This is a violation of Part II, Condition 12 of your permit. The above items require your immediate attention. Please submit a written response to these findings to the Water Division Inspection Branch, of this Department. This response should be mailed to the address below, or ed to Water-Inspection-report@adeq.state.ar.us. This response should contain documentation describing the course of action taken to correct each item noted. This corrective action should be completed as soon as possible, and the written response with all necessary documentations (i.e. photos) is due by April 13, If I can be of any assistance, please feel free to contact me at (870) incerely, han Lynch District Field Inspector Water Division

2 ARKANA DEPARTMENT OF ENVIRONMENTAL QUALITY Agricultural Permit Inspection Report Inspection Date AFIN Number Permit Number County Compliance tatus WR-2 Polk OUT Facility Name and Location Name of Responsible Official Mailing Address Pierce Hog Farm, Inc. Kirby Pierce 118 Victory Lane on Polk 63, off of Hwy 88, east of Phone Number Mena, AR Mena Legal Description Name of Person Contacted Title ec. 14 Tns. 2 Rng. 29W Kirby Pierce Owner Grow or Produce for: Cargill Design Animal Type and Capacity 1000 sow / 6 boar / 1296 weaner pig facility Evaluate the Following Areas: -atisfactory M-Marginal U--Unsatisfactory N/A-Not Evaluated Part 1 - Operation and Maintenance (a) No discharge of wastewater from basins, lagoons, holding pond, and/or pits. (b) No leaks or seeps in waste holding/disposal system. (c) Adequate freeboard was found at basins, lagoons, holding ponds, and/or pits. Estimate freeboard: 24 (d) Banks and levees properly maintained and in good operating condition. (e) Adequate holding capacity in waste holding system. (f) Adequate waste disposal equipment available and operational. Type: ( prinkler irrigation & honey wagon ) (g) All waste being properly applied according to permit and waste management plan. (h) All land application sites are approved under waste management plan or site management plan. (i) Waste holding pond/pit is properly fenced, posted, and staff gauge installed if required. (j) Waste facility and confinement area constructed according to approved plans. (k) Owner and managing operators have completed adequate training and/or education. (l) All flush systems, drain chutes, and waste drag systems operational. (m) Facility operating within design type and capacity limits. Comments/Violations Noted in Operation and Maintenance ection U M N N 1, b A leak in the flush line was allowing liquid manure from the holding pond to surface on the premises and a leak in a collection line was observed behind one of the barns. A small amount of runoff from both leaks was observed with none from either entering the waters of the tate. These were not reported as required. 1, d The interior banks of the holding pond levees show signs of excessive erosion. Part 2 - ampling (a) Waste/wastewater sampled and analyzed for parameters as required by the permit and/or Reg. 5. (b) oil at the land application sites sampled and analyzed as required by the permit and/or Reg 5. (c) ampling and analytical methods meet the terms and conditions of the permit and/or Reg 5. N

3 Part 3 - Records and Reports (a) Adequate records are kept on all waste being land disposed as required by permit and/or Reg. 5. (b) Records being maintained on all sampling and analysis of soil and waste as required by permit and/or Reg. 5. (c) Annual reports and other record keeping requirements kept and/or submitted as required by permit and/or Reg. 5 Comments/Violations noted Records and Reports ection Part 4 - General (a) All waste streams at the facility are covered under permit. (b) No waste placed in a location where it is likely to cause pollution to the waters of the tate. (c) No visible effects on nearby waters of the tate due to permitted waste system. (d) Dead animals properly disposed. [ ] Composter [ ] On-site Burial [ ] Renderer [X] Incinerator [ ] Other (pecify ) Comments/Violations noted in General ection Part 5 - Recurring/Highlighted Violations (List all Recurring and/or Highlighted Violations of Permit Conditions) Photos Take During Inspection: no amples Taken: no Inspector Name: ignature of Reviewer: han Lynch Kerri McCabe Date of Report March 28, 2013 Date of Review March 28, 2013

4 Water Division NPDE Photographic Evidence heet Location: Pierce Hog Farm, Inc. Photographer: han Lynch Witness: None Photo # 1 Of 2 Date: Time: 9:34 Description: Flush line leak surfacing with runoff toward treeline. No observed liquid manure past round baler. Photographer: han Lynch Witness: None Photo # 2 Of 2 Date: Time: 9:12 Description: Collection line leak. Observed runoff ends at point of photograph.

5 CERTIFIED MAIL: May 1, 2013 Kirby Pierce, Owner Pierce Hog Farm, Inc Polk 63 Mena, AR Re: Failure to Respond to tate Agri Compliance Inspection (Polk Co) AFIN No: tate Permit No: 2555-WR-2 Dear Mr. Pierce: A letter dated March 28, 2013 was sent by ADEQ to Mr. Kirby Pierce. The letter outlined the findings of my March 27, 2013 inspection of the above referenced facility. The letter requested that a written response be submitted to the Water Division Inspection Branch of this Department by April 13, To date, no response has been received. Please submit a written response by May 15, A copy of the inspection report has been included for your convenience. Thank you for your attention to this matter. hould you have any questions, feel free to contact me at or you may me at lynch@adeq.state.ar.us. incerely, han Lynch District Field Inspector Water Division

6 Rinearson, Kassie From: ent: To: Cc: ubject: McCabe, Kerri Tuesday, May 07, :59 AM Rinearson, Kassie Lynch, han FW: Kirby Pierce- Pierce Hog Farm Kassie, Please attach the below to WID Thank you! Kerri McCabe ADEQ North Little Rock Office Water Division Field ervices Branch Inspector upervisor Office Location: 5 th Floor (5W37) Office: Cell: Fax: (address to Kerri McCabe) From: Lynch, han ent: Monday, May 06, :37 PM To: McCabe, Kerri ubject: FW: Kirby Pierce- Pierce Hog Farm I have received this as an inspection response. Unless you say otherwise, I plan on accepting this as adequate, only because Cargill is not extending the contract for this farm and they will be out of business this summer. Mr. Peirce has indicated that he will file a closure plan with us at that time and terminate his permit then. From: Tina Laws [mailto:tinajolaws@sbcglobal.net] ent: Friday, May 03, :10 PM To: Lynch, han ubject: Fw: Kirby Pierce- Pierce Hog Farm Please let me know when you get this. thanks Tina Jo --- On at, 4/13/13, Tina Laws <tinajolaws@sbcglobal.net> wrote: From: Tina Laws <tinajolaws@sbcglobal.net> ubject: Kirby Pierce- Pierce Hog Farm To: water-inspection-report@adeq.state.ar.us Date: aturday, April 13, 2013, 7:01 PM In responce to march 28 inspection at Pierce Hog farm! Leaks in flush line has been repaired! Also erosion on interior banks of holding pond has looked that way for 28 years ( I dont think it is ) never the less reshaping with bulldozer will be done soon as weather permits. Thank You 1

7 Kirby Pierce / Pierce Hog Farm 2

8 May 9, 2013 Kirby Pierce, Owner Pierce Hog Farm, Inc Polk 63 Mena, AR RE: Response Letter (Polk Co) AFIN No: tate Permit No: 2555-WR-2 Dear Pierce: I have reviewed the response pertaining to my March 27, 2013 inspection of your hog farm. The information provided sufficiently addresses the violations referenced in my inspection report. At this time, the Department has no further comment concerning this particular inspection. Acceptance of this response by the Department does not preclude any future enforcement action deemed necessary at this site or any other site. If we need further information concerning this matter, we will contact you. Thank you for your attention to this matter. hould you have any questions, feel free to contact me at or you may me at lynch@adeq.state.ar.us. incerely, han Lynch District Field Inspector Water Division