DDW-2024-007936

195 North 1950 West • Salt Lake City, UT
Mailing Address: P.O. Box 144830 • Salt Lake City, UT 84114-4830
Telephone [phone] • Fax [phone] • T.D.D. [phone]
www.deq.utah.gov
Printed on 100% recycled paper

State of Utah

Department of
Environmental Quality

Kimberly D. Shelley
Executive Director

DIVISION OF DRINKING WATER
Nathan Lunstad, P.E.
Director

SPENCER J. COX
Governor

DEIDRE HENDERSON
Lieutenant Governor
January 29, 2024

Holden Town Corp
Caralee Wood, Clerk
℅ Darren Fox
56 North Main
P.O. Box 360127
Holden, Utah 84636

Subject: Compliance Agreement / Enforcement Order Holden Town Water System
UTAH14013

Dear Darren Fox:

We are writing to provide you with a copy of the Compliance Agreement/Enforcement Order
(CA/EO) that addresses the drinking water compliance issues currently affecting the Holden Town
Corp Water System (System). The CA/EO includes milestones that the System must meet to come
into compliance with the applicable regulations. It also references stipulated penalties that will be
assessed if the System does not meet the requirements and/or the deadlines.

Ensuring adequate source capacity is fundamental to maintaining a safe drinking water system.
The source, whether a well, reservoir, or spring, serves as the starting point for the water treatment
and distribution. Sufficient source capacity is crucial for meeting the demands of the community,
especially during peak usage periods. Without ample source capacity, a water system may
struggle to provide an adequate and consistent supply, leading to potential issues like low pressure
or compromised water quality. Regular assessments, source protection measures, and
infrastructure planning are essential to guarantee a resilient and reliable water source,
safeguarding the health and well-being of the community.

Please carefully review the enclosed CA/EO, sign it, and return it to the Director within 30 days of
receiving this letter. Once the document is fully executed, a copy will be returned to you for your
records. Failure to return a signed copy within 30 days of this letter may result in an administrative
order issued by the director to ensure progress toward compliance.

Holden Town Corp
Page 2 of 2
January 29, 2024

I encourage you to continue to work closely with our Division staff. Your primary contact is Colt
Smith at [e-mail] or [phone].

Sincerely,

Nathan Lunstad P.E.
Director
Division of Drinking Water

cc: Kim Shelley, Utah Department of Environmental Quality, [e-mail]
John Chartier, Utah Department of Environmental Quality, [e-mail]
Eric Larsen, Central Utah Health Department, [e-mail]
Bret Randall, Utah Attorney General’s Office. [e-mail]
Elizabeth A. Burns, Assistant Attorney General, [e-mail]
Christopher Brown, Environmental Protection Agency -Region 8, [e-mail]
EQDWMonitoring, EQDWCOA, EQDWVSA, and EQDWFS

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UTAH DEPARTMENT OF ENVIRONMENTAL QUALITY
DIVISION OF DRINKING WATER

In the Matter of:

Holden Town Water System

COMPLIANCE AGREEMENT /
ENFORCEMENT ORDER

Docket No. UTAH14013-2024-01

This COMPLIANCE AGREEMENT / ENFORCEMENT ORDER (“CA/EO”) has been issued
by the Director of the Utah Division of Drinking Water (“Director”) under the Director’s legal
authorities described below. This CA/EO has been agreed to by Holden Town Corp, a Utah
municipal corporation, in its capacity as the “Supplier” who is legally responsible for the System.
STATUTORY AND REGULATORY AUTHORITY
1. In 1974, Congress enacted the federal Safe Drinking Water Act, codified at 42 U.S.C. § 300f
et seq., as amended. 42 U.S.C. § 300g-2 allows states to achieve primary enforcement
responsibility after the Environmental Protection Agency (“EPA”) has determined that the
state has adopted and can implement a state program that is no less stringent than the federal
public drinking water program (“Primacy”).
2. The Utah legislature has enacted the Utah Safe Drinking Water Act, codified at Utah Code
§ 19-4-101 (the “Act”), with the intent of achieving Primacy.
3. Utah Code § 19-4-104 authorizes the Utah Drinking Water Board (the “Board”), among
other things, to make rules regulating public water systems in the state of Utah. Utah Code
§ 19-4-104(1)(c)(vi) charges the Board to “meet the requirements of federal law related or
pertaining to drinking water.” The Board has promulgated the Utah Public Drinking Water
Rules, codified at Utah Administrative Code (“UAC”) R309.
4. In 1980, the EPA Administrator determined, in accordance with 40 C.F.R. § 142.11, that the
Utah public drinking water program met the federal requirements for Primacy. See 45 Fed.
Reg. 6647 (January 29, 1980). In accordance with 40 C.F.R. § 142.17, the EPA
Administrator has reviewed, and continues to review annually, the Utah public drinking
water program to evaluate its continuing compliance with the requirements set forth in 40
C.F.R. Part 142.
5. The Board has defined public water systems under the Utah Public Drinking Water Rules,
UAC R309-110-4.
6. UAC R309-100-7 directs the Director to “assign a rating to each public water supply in order
to provide a concise indication of its condition and performance” in accordance with R309-
400. This rule is generally known as the Improvement Priority System (“IPS”) rating
system.

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7. The IPS rating system “is a point system used by the division to evaluate a public water
system’s performance and compliance with the drinking water rules in Title 309,
Environmental Quality, Drinking Water.” UAC R309-400-3(1). Under the IPS rating
system, each public water system is assigned a rating “to characterize the water system’s
compliance with drinking water rules and overall operation and performance.” UAC R309-
400-3(2). The IPS rating system is “used by the division to assign compliance ratings to
public water systems and to prioritize enforcement action based on points assessed for
noncompliance with drinking water rules.” UAC R309-400-1(1).
8. UAC R309-400-4(1)(a)(ii) directs the Director to establish “the point thresholds for
assigning an Approved or Not Approved rating for each type of water system.” For systems
exceeding the point threshold, the Director may issue a “Not Approved” rating. The
thresholds are as follows: (i) for community water systems, 150 points; (ii) for non-
transient, non-community water systems, 120 points; and (iii) for non-community water
systems, 100 points.
9. UAC R309-400-4(4) allows the Director to assess points against public water systems upon
their failure to comply with Division directives and orders.
10. UAC R309-400-5(1)(b)(ii) allows the Director to rate any public water system as “Not
Approved” at any time if an immediate threat to public health exists.
11. UAC R309-400-5(1)(c) provides that a public water system may qualify for a “Corrective
Action” rating for its public water system “based on a current, written agreement with the
division to resolve underlying noncompliance according to a compliance schedule.”
12. Pursuant to Utah Code § 19-4-106(d), the Director may enforce rules promulgated by the
Board through the issuance of orders. See also UAC R309-100-8.
13. Utah Code § 19-4-107 provides that upon discovery of any violation of the Act or a rule of
the Board, the Director shall promptly notify the supplier of the violation, state the nature of
the violation and issue an order requiring correction of that violation.
14. Utah Code § 19-4-109 provides that any person who violates the Act or a rule or order made
or issued pursuant to the Act may be subject to an administrative penalty of up to $1,000 per
day of violation or a civil penalty of up to $5,000 per day of violation.
FINDINGS
The Director makes the following Findings for purposes of this CA/EO:
15. There exists approximately thirteen miles south of Scipio and approximately ten miles north
of Fillmore along Interstate-15 in Millard County, Utah, a drinking water system known as
the Holden Town Water System (the “System”) that serves a population of approximately
475 persons. The System generally includes four active storage tanks with a total e ffective
volume of 740,000 gallons, two active groundwater springs, a chlorinator, and an
independent distribution system serving approximately 281 connections.

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16. The Supplier (defined above) is the owner and/or operator of the System and is, therefore,
legally responsible for the System and for compliance with applicable laws, rules, and
regulations.
17. The System is a public drinking water system within the meaning of the Utah Safe Drinking
Water Act and the Utah Public Drinking Water Rules.
18. The System qualifies as a community system under the Utah Public Drinking Water Rules.
The maximum number of IPS points allowed for this type of system is 150.
19. Ensuring adequate source capacity is fundamental to maintaining a safe drinking water
system. The source, whether a well, reservoir, or spring, serves as the starting point for the
water treatment and distribution. Sufficient source capacity is crucial for meeting the
demands of the community, especially during peak usage periods. Without ample source
capacity, a water system may struggle to provide an adequate and consistent supply, leading
to potential issues like low pressure or compromised water quality. Regular assessments,
source protection measures, and infrastructure planning are essential to guarantee a resilient
and reliable water source, safeguarding the health and well-being of the community.
20. The Master IPS Report attached hereto as Exhibit A describes several violations and
deficiencies associated with the System, which form the basis of this CA/EO (the
“Violations and Deficiencies”). Supplier agrees and stipulates that the information
contained in the attached IPS Report is true and correct as of the date shown on the Master
IPS Report.
ORDER
Based on the foregoing Findings, the agreement of the Supplier, and good cause appearing,
IT IS HEREBY ORDERED as follows:
21. Attached hereto as Exhibit B is an Enforcement Order Schedule – UTAH14013
(“Enforcement Order Schedule”) listing the violations and deficiencies associated with the
System as well as a description of specific corrective actions and other measures that are
required for the System to comply with the Safe Drinking Water Act and the Board’s rules,
including the dates by which such corrective actions and other measures shall be completed.
The Supplier is hereby ordered to complete all corrective actions and other measures
described in the Enforcement Order Schedule, to the satisfaction of the Director, on or before
the due dates identified in the Enforcement Order Schedule.
22. The Supplier agrees to collect all samples required by the Safe Drinking Water Act and the
Board’s rules and to report the sample results to the Director within the timeframe mandated
by rule.

GENERAL PROVISIONS
23. Based on this CA/EO, the Director hereby rates the System as “Corrective Action” status.
The “Corrective Action” rating is conditioned upon the Supplier’s adherence to the

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requirements of this CA/EO, the Act, and the Public Drinking Water Rules. The Director
may re-rate the System as “Not Approved” at any time based on any violation of this CA/EO,
the Act, or the Public Drinking Water Rules.
24. Upon satisfactory compliance with the requirements in the Enforcement Order Schedule,
the Director shall issue a subsequent administrative order closing out this CA/EO and rating
the System as “Approved” in accordance with UAC R309-100-7 and R309-400. Pursuant
to such subsequent order, the Director may also take other appropriate actions or impose
appropriate conditions based on the facts presented.

25. The Supplier hereby stipulates and agrees to pay, within 30 days of demand by the Director,
administrative penalties in the following amounts arising from any and all violations of this
CA/EO on a per-day, per-violation basis:

Penalty Per Violation Per Day Period of Noncompliance
$ 250 1st through 14th day
$ 500 15th through 30th day
$1,000 31st day and beyond

26. In the event of any violation of this CA/EO with criminal negligence, within the meaning of
Utah Code § 19-4-109(7)(b), the Director reserves the right, in the Director’s sole discretion,
to seek the imposition of fines and civil penalties under that section in addition to stipulated
administrative penalties under this CA/EO.

27. Nothing in this CA/EO shall be construed as prohibiting, altering, or in any way limiting the
ability of the Director to seek injunctive relief pursuant to Utah Code § 19-4-107(2) arising
from violations of this CA/EO, the Act, or the Utah Public Drinking Water Rules.

28. This CA/EO does not in any way relieve the Supplier from any other obligation imposed
under the Act or any other state, federal, or local law, rule, or regulation. The Director
reserves that this CA/EO is, without prejudice to, all rights against the Suppl ier that the
Director may have pertaining to matters not addressed in this CA/EO, including (a)
violations of this CA/EO; (b) future violations of the Act or the Utah Public Drinking Water
Rules; and (c) criminal liability.

29. The Director has the jurisdiction and authority to make the findings set forth in this CA/EO
and to otherwise enforce the terms of this CA/EO.

30. The date of issuance shall be the date that this CA/EO is executed by the Director.
31. As of the date of issuance, this CA/EO shall constitute a final administrative order under the
Act and shall operate as a final adjudication upon the merits of the matters addressed herein.

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In the Director’s sole discretion, violations of this CA/EO may result in the commencement
of an action for civil enforcement in state district court by the attorney general, as provided
in Utah Code Section 19-4-107. Such actions may seek injunctive or other relief, including
the imposition and collection of civil penalties as allowed by law. The Supplier agrees that
in any enforcement action, it shall not contest the finality or validity of this CA/EO or the
Director’s authority to enter it as a final administrative order under the Act.
32. The dates set forth in the Enforcement Order Schedule may be extended in writing by the
Director, in the Director’s sole discretion, based on the Supplier’s showing of good cause.
Good cause for an extension generally means events outside of the reasonable control of the
Supplier, such as force majeure, inclement weather, contractor or supplier delays, and
similar circumstances. However, the Director expects the Supplier to employ reasonable
means to limit foreseeable causes of delay. The timeliness of the Supplier’s request for an
extension shall constitute an important factor in the Director’s evaluation.
33. In partial or full satisfaction of the Enforcement Order Schedule, the Supplier may (a) obtain
a variance or exception as allowed by the Act and the Public Drinking Water Rules; or (b)
propose to the Director an alternate method for compliance with the Act and the Public
Drinking Water Rules. No such alternate means of compliance with the Enforcement Order
Schedule shall be accepted unless approved by the Director in writing.
34. The person signing this CA/EO on behalf of the Supplier hereby represents to the Director
that he or she has the full legal authorization to do so and agrees that the Director may rely
on this representation.

COMPLIANCE NOTICE

Compliance with the provisions of this CA/EO is mandatory. All violations of the Utah Safe
Drinking Water Act, the Drinking Water Rules, and this CA/EO shall be strictly enforced during
the time that this CA/EO remains in effect.

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IT IS SO ORDERED AND AGREED.
DIVISION OF DRINKING WATER

By:___________________________________

Nathan Lunstad

Director

DATE:_______________________________

HOLDEN TOWN CORP

By:

Name:

Title:

DATE:_______________________________

01/29/2024
Mayor
Darren S Fox
a/#an
0n./a җan 29Ѷ 2024 14ѷ1х MSҘ
01/29/2024

Enforcement Order Schedule UTAH14013

System Name: Holden Town Water System
System Number: UTAH14013
Administrative Contact: Rodney Alan Dastrup
Email: [e-mail]
Phone Number: 435-795-2213

Corrective Action Requirements and Due Dates

Date of Issuance:_________________________

Distribution System, DS001
Item #1 Code Facility Deficiency Rule Citation
S094 DS001 System Lacks More Than 20% Of
Required Source Capacity
R309-510-7(1)
Corrective Action Completion Due Date
Submit documentation showing evidence of adequate source
capacity.
March 1, 2025

Monitoring Violations
Item #2 Code Facility Violation Rule Citation
3A DS001 Monitoring, Routine, Major (RTCR) R309-211-9(3)
Violation Number Period Analyte
4006445 09/01/2023-09/30/2023 Total Coliform Bacteria
Corrective Action Completion Due Date
Take required and applicable total coliform samples. Duration of this Order

01/29/2024

IT IS SO ORDERED AND AGREED.
DIVISION OF DRINKING WATER

By:___________________________________

Nathan Lunstad

Director

DATE:_______________________________

HOLDEN TOWN CORP

By:

Name:

Title:

DATE:_______________________________

01/29/2024
Mayor
Darren S Fox
a/#an
0n./a җan 29Ѷ 2024 14ѷ1х MSҘ
01/29/2024