RALEIGH – Pamlico County and the now-stalled Cutter Bay subdivision in Stonewall figure prominently in Grand Jury subpoenas served recently on three state employees.
Federal prosecutors want to know if any state regulatory agencies, particularly various sections within the Department of Environment and Natural Resources, were pressured by former Gov. Mike Easley or his staff to bend the rules for land developers in eastern North Carolina.
Kim Colson, John Dorney, and Jeff Schaffer, all high-echelon environmental officials, will be quizzed in secret by a panel of 23 rank-and-file citizens. The three regulators have been asked to delve into their files and archives, bringing with them any and all correspondence or information involving more than a dozen people, labeled “Relevant Parties” in the seven-page subpoena..
Most of those on the list have been involved with either the Cutter Bay project, or with similar residential developments: Summerhouse in Onslow County; Cannonsgate in Carteret County; and, Oyster Harbour in Brunswick County.
Colson is employed by the Division of Water Quality, the entity that issues state permits for wastewater treatment plants. Currently the assistant director of the Construction Grants and Loan Section, Colson is a former supervisor of the land application unit within the Aquifer Protection Section.
Dorney also works for the Division of Water Quality, where he serves as an Environmental Program Supervisor III.
And, Schaffer is the Eastern Operations Supervisor for the Ecosystem Enhancement Program that oversees watershed planning and implementation.
Locally, in the spring of 2007, those familiar with the Cutter Bay project marveled at how quickly the Charlotte-based developer managed to secure a state permit for a 400,000-gallon per day treatment facility, ostensibly designed to handle wastewater effluent from 891 smallish building lots.
In a letter dated May 16, 2007, to William G. Allen, Manager, of R.R. Development North III, Alan Klimek, a professional engineer within the N.C. Division of Water Quality, confirmed the total elapsed time from application to official permit was less than two months:
“In accordance with your permit application received March 20, 2007 . . . we are forwarding herewith Permit No. WQ0031365, dated May 16, 2007 . . .”
Despite the warp speed, particularly when compared to delays encountered elsewhere by other developers, the lackluster economy soon descended – bringing property sales at Cutter Bay to a screeching halt.
The trio will appear separately. They are expected to answer the Grand Jury’s questions in sessions scheduled on or before Dec. 18. Names that will be bandied about, include the following:
Randolph M. Allen, aka Randy Allen
William G. Allen, aka Gary Allen
Cari Boyce
McQueen Campbell
Cannonsgate Investment LLC
Mike Degner
Michael F. Easley
Kevin Eberle
Franklin Freeman
David Luddy
John Merritt
Ruffin Poole
Susan Rabon
R.A. North Development
E. Stephen Stroud, aka Steve Stroud
Ken Thompson
Bob Wilson
Lanny T. Wilson
Larry Zucchino
Also, Federal prosecutors will closely examine any potentially incriminating documents that Colson, Dorney, and Schaffer have been asked to supply. One request, in particular, stands out:
All documents relating to payments, advances of funds, loans, donations, contributions, gifts, transfers of real or personal property, and/or any other type of remuneration made, either directly or indirectly, to you by any of the Relevant Parties.
In October, the state elections board penalized Easley's gubernatorial campaign committee $100,000 for failing to report dozens of flights contributed by McQueen Campbell. However, Easley has not been personally charged with any crime or wrong doing.
