FAYETTEVILLE — Arbuckle Public Service District may be in better shape than it has been in years, but between a recent fine for environmental violations and the need for critical upgrades, it’s problems aren’t over by a long shot.

Located on Arbuckle Creek in Minden, the PSD operates a sewer collection and treatment system that eventually discharges into the New River. That river’s importance as a drinking water source and recreational playground makes the PSD a critical part of the overall health of Fayette County’s water resources.

In a June order, the West Virginia Department of Environmental Protection (WVDEP) fined the PSD $362,730 for a number of permit violations.

In 2007, the WV Public Service Commission (WVPSC) launched an investigation into the PSD because of its history of dysfunction, both financial and technical.

However, in a staff memo released in early August, several divisions of the WVPSC recommended dismissing the case, stating that receivership no longer seems appropriate based on the PSD’s recent progress on several fronts.

Both the Fayette County Commission and the United States Department of Agriculture (USDA), which issued a loan to the PSD, say they agree.

But ACE Adventure Resort, which paid $45,862 to Arbuckle for sewer services in 2011, states they have seen no improvements at Arbuckle since the investigation launched.

In a letter filed with the commission in July, ACE officials say the sewer service from Arbuckle has been “offensive and detrimental” to their business due to its “horrific odor,” which has forced them to move and refund guests.

“We have seen misuse of equipment, cronyism, lack of communication and numerous questionable practices,” states the letter. “When our concerns were expressed we either received no explanation or were completely ignored.”

ACE supports Arbuckle’s transfer into receivership, citing a “blatant disregard for operating the plant responsibly.”

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A February inspection by the WVDEP turned up a number of problems at Arbuckle, including excessive storm water overloading the system; raw sewage passing into Arbuckle Creek during rains; inoperable and broken equipment; and consistent violations of effluent limitations for fecal coliform.

A water sample that day showed levels of 18,000 col/100ml, while the limit is only 400 col/100ml.

A number of other serious violations were noted, and in its June order the WVDEP ordered Arbuckle to submit a plan to correct the situation.

The PSD responded that it had hired Triad Engineering to complete a study on the system, the implementation of which would address all the issues cited. A list of planned upgrades and improvements was included and the PSD asked for 42 months to complete all the work.

In May of this year, the PSC directed Arbuckle to file a report stating “any and all viable alternatives to its sewer utility being placed in receivership.”

The document, filed on July 11, states that while the PSD has had past “deficiencies,” which led to the investigation in the first place, it wants to remain independent. They cite the following improvements as support:

-- Retainment of an accounting firm to get the PSD’s books and tax filings in order

-- Retainment of new legal council

-- Retainment of Triad Engineering to advise on operations

-- Hiring of Gary Ramsey as plant operator

-- Two new members of the board

-- New sewer rates to generate adequate cash flow for debts and operation

-- Payment of all debts in a timely manner

-- Up to date discharge monitoring reports

-- Support of the Fayette County Commission

The report also states that neither the City of Oak Hill nor the New Haven PSD are interested in operating Arbuckle in receivership.

In its staff memo, the WVPSC says the PSD’s many operational problems are due to the poor state of its facilities and not any operational incompetence. They say the district has made “noticeable progress” and undertaken “preparatory efforts” to correct the problems.

For that and several other reasons — including the lack of an available receiver — the commission agrees that receivership no longer seems as appropriate as it might have in 2007.

However, the WVPSC’s Engineering Division does not mince words about the district’s future challenges.

“A long-standing, chronic lack of maintenance coupled with an absence of spending on equipment replacement or upgrading has taken a terrible toll on this system,” they write.

The “sad state of affairs” with regard to permit compliance, they say, won’t be resolved unless funding can be found to complete the district’s proposed improvements project.

The PSD has its affairs in order to the point that each month it can pay its bills, which include significant debt obligations. However, even with a recent rate increase, it’s not enough to begin to fund the kind of upgrades needed at the plant. For that, the district will have to turn to grants and other public funding opportunities.

“Exactly how it’s going to be funded remains to be seen...We’re competing with limited dollars to be able to obtain financing,” said the district’s lawyer, Wyatt Hanna, at a recent Fayette County Commission meeting.

W.D. Smith of the Region 4 Planning and Development Council, who has been working closely with Arbuckle to get the system back on its feet, said he thinks there may be a shortage of available money in the next several years.

“But I’m optimistic — and you have to be, in my line of work — that there will be funds available for this project when we need it,” he says.

Meanwhile, a group of volunteers from Fayette County, coordinated by the New River Clean Water Alliance and the National Committee for the New River, continues its efforts to monitor the water quality of Arbuckle Creek on a regular basis.

The baseline water quality data collected will paint a more detailed picture of where pollution in the creek — and ultimately the New River — comes from, why it’s there, and what might be done to address the issue.

—E-mail: cmoore@register-herald.com