A dredging project in North Carolina, funded by $15 million in state money, has been ordered to stop after exceeding permitted dredging boundaries numerous times. The U.S. Army Corps of Engineers issued the suspension after finding extensive violations by EJE Dredging Service, a company led by a prominent North Carolina Republican currently under federal investigation.
Noncompliance with Dredging Permits
EJE Dredging Service was found to have violated the terms of its permits in 98% of dredging loads over a nine-month period. The company, responsible for clearing the Oregon and Hatteras inlets, dredged materials far beyond the authorized channels, in some cases extending as far as 445 feet beyond the designated 100-foot channel width.
“I’ve been with the Corps for 22 years and have never seen anything like this,” remarked Tommy Fennel, regulatory chief for the Wilmington district, which covers North Carolina.
Corps of Engineers Takes Action
The U.S. Army Corps of Engineers suspended permits issued to Dare County for the dredging project, ordering the county to develop an enforceable plan within two weeks. Col. Brad Morgan, the Corps district commander, warned that if no solution is found, the permits may be revoked.
“We want to continue working with Dare County,” Morgan said. “Dredging is a significant asset for the state, but it must be done within the authorized parameters.”
EJE Dredging’s Political Connections Raise Concerns
EJE Dredging was founded by Judson Whitehurst, a Greenville business owner, just months after North Carolina lawmakers approved the $15 million for the project. Whitehurst’s company has political ties, with its CEO being a former legislative aide involved in securing the state funds. This individual, Hennessy, is now under federal investigation for his involvement in another state-funded project. Subpoenas have been issued to investigate his business dealings and his role in a $3.5 million domestic violence prevention program funded by the state in 2020.
The Origins of the NC-Funded Dredging Effort
Dare County, home to commercial and recreational boating industries, has faced ongoing challenges with shifting sands that block navigational channels. The federal government had previously abandoned plans to build jetties to stabilize the Oregon Inlet, leaving the county in search of a solution.
In 2018, then-Senator Bill Cook, a Republican from Beaufort County, successfully persuaded lawmakers to allocate $15 million for the dredging effort. Hennessy, along with Marion Warren, a former director of the state Administrative Office of the Courts, co-authored the legislation that enabled the funding.
Dare County Selects EJE Dredging Over Established Competitors
The $15 million state funding was structured as a forgivable loan, which would be repaid through discounted dredging rates. Dare County’s Oregon Inlet Task Force selected EJE Dredging over a more experienced Massachusetts-based dredging company. EJE used the funds to purchase a new dredge, Miss Katie, which was modeled after the Corps’ Murden dredge.
Environmental Oversight and Permit Violations
The U.S. Army Corps of Engineers regulates dredging activities to ensure they meet approved environmental standards. Navigational channels must be maintained within specific depths and widths to minimize the impact on marine life. Despite designing Miss Katie in collaboration with the Corps, EJE’s dredging work began encountering problems shortly after it started in late 2022.
Early Signs of Noncompliance
Within months of beginning the project, the Corps discovered that EJE had dredged parts of the channels too deep, with violations noted in March and July of 2023. In response, Dare County officials claimed the channels had already been deeper in those areas prior to EJE’s work. However, the Corps continued to monitor the project and raised concerns.
In September 2023, Corps officials met with Dare County, including Hennessy, to discuss a plan to resolve the dredging issues. Despite their efforts, violations continued.
Lack of Dredging Compliance Protocols
When conducting dredging projects, the Corps typically requires contractors to perform surveys before and after dredging to ensure the work stays within approved limits. Contractors are not compensated for material removed outside of designated areas. While the Corps has strict oversight, EJE failed to perform the required surveys, despite having a survey vessel for the task.
Instead, the Corps built its case using sensor data from the National Dredging Quality Management Program. These sensors, which are inspected annually, showed that EJE had frequently exceeded the permitted boundaries during its dredging operations.
Environmental Impact and Legal Ramifications
Although EJE dredged outside the authorized channels, it correctly placed all dredged material in the designated disposal areas. However, the repeated violations have triggered serious legal and environmental consequences for the company.
This case serves as a reminder of the importance of strict compliance with dredging permits and environmental regulations, especially in projects funded by public money. The involvement of a company with political connections has raised further concerns about the transparency and accountability of state-funded projects.
Conclusion: The Future of Dredging in Dare County
As the U.S. Army Corps of Engineers continues to review EJE Dredging’s actions, the future of dredging in Dare County remains uncertain. The Corps has made it clear that if an enforceable plan is not developed, permits could be revoked, leaving Dare County’s navigational channels at risk.
The suspension of EJE Dredging’s operations underscores the critical need for regulatory compliance in dredging projects, as well as the potential risks posed by politically-connected businesses involved in state-funded initiatives.