If he was fined last year. That kinda answer the question as to whether the authorities thinks it's acceptable or not.
I really doubt there is a chance he doesn't know about it. 200' wide by 10" deep, Millions of Millions of gallon isn't something you just don't notice.
So it sounds like he has taken the position of Not Going to Worry about it until I'm called on it.
I would suspect that what ever agency issued the fines last year, would be watching him this year. Maybe a whisper in their ear would get them to be a little more proactive this year. Rather than waiting to shut down everything.
If somebody is trying to do the right thing and just fighting the elements, I all about giving them the benefit of doubt. If somebody just doesn't give a hoot about the rest of community or anybody downstream, Then they deserve the fine.