WQ0004268_Renewal (Application)_20171116

Environmental
Quality
. State of North Carolina
Division of Water Resources
Water Quality Regional Operations Section
Staff Report
To: ❑ NPDES Unit ® Non -Discharge Unit
Attn: Ashley Kabat
Application No.: WQ0004268
Facility name: Murphy -Brown, LLC
Sager Creek Veg. Company Spray Irr.
From: Jim Barber
Fayetteville Regional Office
Note: This form has been adapted from the non -discharge facility staff report to document the review of both non -
discharge and NPDES permit applications and/or renewals. Please complete all sections as they are applicable.
I. GENERAL AND SITE VISIT INFORMATION
1.
Was a site visit conducted? ® Yes or 0 No
a. Date of site visit: 16 November 2017
b. Site visit conducted by: Jim Barber and Kent White
c. Inspection report attached? ❑ Yes or n No
d. Person contacted: Dave Elkins and their contact information: [phone] ext.
e. Driving directions: From Clinton take NC Hwy 24 east and drive approximately 5.50 miles and the plant is on the
right.
2. Discharge Point(s): N/A
Latitude:
Latitude:
Longitude:
Longitude:
3. Receiving stream or affected surface waters: N/A (Six Runs Creek is the western property boundary for the site)
Classification: C; Sw
River Basin and Subbasin No.: Cape Fear (CPF 19)
Describe receiving stream features and pertinent downstream uses: Downstream uses are typical row crop
farming, swine production and poultry along the majority of Six Runs Creek to the confluence with Great
Choharie Creek to form Black River.
II. PROPOSED FACILITIES: NEW APPLICATIONS
1. Facility Classification: (Please attach completed rating sheet to be attached to issued permit)
'Proposed flow:
Current permitted flow:
2. Are the new treatment facilities adequate for the type of waste and disposal system? ❑ Yes or ❑ No
If no, explain:
3. Are site conditions (soils, depth to water table, etc) consistent with the submitted reports? 0 Yes 0 No ❑ N/A
If no, please explain: -
4. Do the plans and site map represent the actual site (property lines, wells, etc.)?.❑ Ye ❑ No 0 N/A
If no, please explain:
FORM: WQROSSR 04-14 Page 1 of 6

5. Is the proposed residuals management plan adequate? 0 Yes 0 No 0 N/A
If no, please explain:
6. Are the proposed application rates (e.g., hydraulic, nutrient) acceptable? 0 Yes 0 No 0 N/A
If no, please explain:
7. Are there any setback conflicts for proposed treatment, storage and disposal sites? 0 Yes or 0 No
If yes, attach a map showing conflict areas. .
8. Is the proposed or existing groundwater monitoring program adequate? 0 Yes 0 No 0 N/A
If no, explain and recommend any changes to the groundwater monitoring program:
9. For residuals, will seasonal or other restrictions be required? 0 Yes 0 No 0 N/A
If yes, attach list of sites with restrictions (Certification B)
Describe the residuals handling and utilization scheme:
10. Possible toxic impacts to surface waters:
11. Pretreatment Program (POTWs only):
III. EXISTING FACILITIES: MODIFICATION AND RENEWAL APPLICATIONS
1. Are there appropriately certified Operators in Charge (ORCs) for the facility? E Yes.0 No 0 N/A
ORC: Mike Ammons Certificate #: SI-988713 Backup ORC: Dave Nordin Certificate #:SI-988720
2. Are the design, maintenance and operation of the treatment facilities adequate for the type of waste and disposal
system? ® Yes or 0 No
If no, please explain:
Description of existing facilities: Three -acre primary settling lagoon discharging to a 27 acre storage pond. The
production facility is no longer associated with the property that Murphy Brown LLC purchased, hence the
request in the cover letter dated 26 October 2017 to remove language in the permitted description to processing
equipment and piping.
Proposed flow: 0.415 MGD (415,000 GPD)
Current permitted flow: 0.415 MGD (415,000 GPD)
Explain anything observed during the site visit that needs to be addressed by the permit, or that may be important
for the permit writer to know (i.e., equipment condition, function, maintenance, a change in facility ownership,
etc.). Murphy -Brown LLC is starting the process of closing the three acre lagoon and pumping all wastewater
stored in the 27 acre storage pond. During the site "visit on 16 November 2017, the level of the, storage pond was
very low (approximately 7 to 8 feet of freeboard) since the processing facility closed 18 months ago. A contract
ORC for Sager Creek/Del Monte operated the spray irrigation system after the closing of the vegetable processing
plant to maintain freeboard- in the storage lagoon. With favorable rainfall, periodic irrigation and evaporation the
storage lagoon is very low (see photo with email).
3.. Are the site conditions (e.g., soils, topography, depth to water table, etc) maintained appropriately and adequately
assimilating the waste? ® Yes or 0 No
Um), please explain:
4. Has the site changed in any way that may affect the permit (e.g., drainage added, new wells inside the compliance
boundary, new development, etc.)? 0 Yes or ® No
If yes, please explain:
5 Is the residuals management plan,adequate? ® Yes or 0 No
If no, please explain: -
6. Are the existing application rates (e.g., hydraulic, nutrient) still acceptable? El Yes or 0 No
If no, please explain: .
7. Is the existing groundwater monitoring program adequate? ® Yes 0 No 0 N/A
If no, explain and recommend any changes to the groundwater monitoring program:
FORM: WQROSSR 04-14 Page 2 of 6

8. Are there any setback conflicts for existing treatment, storage and disposal sites? ❑ Yes or. ® No
If yes, attach .a map showing conflict areas.
9. Is the description of the facilities as written in the existing permit correct? 0 Yes or ® No —
If no, please explain: The permit language on page oneofthe permit should be modified as requested in thecover
letter. The permit language after the first sentence should start at "an approximate three -acre (i.e. 50 million
gallon) fine settling lagoon; a 27 acre treated wastewater storage lagoon, etc.. The total irrigation acreage should
be 158.31 acres (comprised of Fields A, B, C, 'D and 1 thru 18A). Field A should be reduced in size by 3.50 acres
to 35.80 acres'and Field C should be reduced by 5.25 acres to 11.15 acres based on the land transfer of these
acreages with the sale of the processing plant site. These acreage reductions are reflected in the total acres
available for irrigation of 158.31 above.
10. Were monitoring wells properly constructed and located? ® Yes ❑ No ❑ N/A
If no, please explain:
C'
FORM: WQROSSR 04-14 Page 3 of 6

1'1. Are the monitoring well coordinates correct in BIMS? ® Yes ❑ No 0 N/A
I
Monitoring Well
Latitude.
Longitude _
o ,
„
0
1
II
O ,
„
0
,
II
O ,
„
0
I -II
O ,
„
- - 0
,
II
O,
„
- 0
I
II
12. Has a review of all self -monitoring data been conducted (e.g., DMR, NDMR, NDAR, GW)? ® Yes or 0 No
Please summarize any findings resulting from this review: No data for the past 18 months or so. Past NDMR's
have been reviewed as part of the annual inspection program. NDARs for recent spray events are acceptable.
Provide input to help the permit writer evaluate any requests for reduced monitoring, if applicable.
13. Are there any permit changes needed in order to address ongoing BIMS violations? 0 Yes or ® No
If yes, please explain:
14. Check all that apply:
® No compliance issues 0 Current enforcement action(s) 0 Currently under JOC
❑ Notice(s) of violation 0 Currently under SOC ❑ Currently under moratorium
Please explain and attach any documents that may help clarify answer/comments (i.e., NOV, NOD, etc.)
If the facility has had compliance problems during the permit cycle, please explain the status. Has the RO been
working with the Permittee? Is a solution underway or in place?
Have all compliance dates/conditions in the existing, permit been satisfied? 0 Yes ❑ No ® N/A
If no, please explain:
15. Are there any issues related to compliance/enforcement that should be resolved before issuing this permit?
❑ Yes ElNo❑N/A
If yes, please explain:
16. Possible toxic impacts to surface waters: N/A
17. Pretreatment. Program (POTWs only): N/A
FORM: WQROSSR 04-14 Page 4 of 6

IV. REGIONAL OFFICE RECOMMENDATIONS
1. Do you foresee any problems with issuance/renewal of this permit? 0 Yes or Z No
If yes, please explain:
2. List any items that you would like the NPDES Unit or Non -Discharge Unit Central Office to obtain through an
additionalinformation request:
Item
Reason
3. List specific permit conditions recommended to be removed from the permit when issued:
Condition
Reason
4. List specific special conditions or compliance schedules recommended to be included in the permit when issued:
Condition
Reason
5. Recommendation: 0 Hold, pending receipt and review of additional information by regional office
0 Hold, pending review of draft permit by regional office
0 Issue upon receipt of needed additional information
® Issue
❑ Deny (Please st to reasons:
6. Signature of report preparer: 17/� /54—
Signature of rregional supervisor: J / I`ti ce4-J FoP— —reel.) "1"-4 v
Date: /a -///tom
FORM: WQROSSR 04-14
Page 5 of 6

V. ADDITIONAL REGIONAL STAFF REVIEW ITEMS
For Dominant Soil Series for Fields A, B and C; please enter Wagram. For Field D enter Johns. The soil types will be
necessary for determining-R.Y.E rates in the event that Murphy -Brown LLC decides to change the crops grown on
these fields from Bermuda/Fescue hay to row crops during the closure activities at the facility.
i
FORM: WQROSSR 04-14
Page6of6

ATTACHMENT B - APPROVED LAND APPLICATION SITES AND LIIVIITATIONS Permit, Number: WQ0004268 Versions 3.0
Sager Creek Foods, Inc - Sager Creek Vegetable Company
' IRRIGATION AREA INFORMATION
APPLICATION LIMITATIONS.
Field
Owner
County, ;
' Latitude .:
Longitude
Nea
Acreage e
Sod Series
' v Parameter
Hit ly
e
Yearly.
Mai •
Units
-
35,'.80
01284-Non-Discharge Application Rate
025
..62 36
_
• •inches"
A (1-9)
Sager Creek Foods, Inc.
, Sampson ,
34° 58' 53" .
-78° 13' 23"
W!Q G�M
_le
. ' WQ09 PlantAvailab Nitrogen
300 -
lbs/ae.
B (1-4)
ds, Inc:
Sager Creek Foo
Sampson
34° 58' 52"
-78° 13''09"
8:00
w aGtrl`
01284 :Non -Discharge Application Rate
WQ09 -Plant Available Nitrogen
0:25
6236
300
inches
lbs/ac
C' 1-7
( )
Sager Creek Foods, Inc.
g
•Samson `
p
' S5
34° 58•
78° 13' 01"
I� �j
, jf48"
FwV}'(f( /h, .
01284 -Non-Discharge Application Rate
WQ09-Plant.Available Nitrogen
0.: 5 �
62.36.
300
'inches
lbs/ac
01284 - Non -Discharge Application Rate
0.25
42:98
inches
D (1-.12)
Sager Creek Foods; Inc.
Sampson
34° 58' 39"
-78° 13' 11"
36.60:
s0 'S .
WQ09 - Plant Available Nitro"gen.
200
lbs/ac
. 1
Sager Creek Foods, Inc..
- ,Sampson
, 34° 58' 23"
-78° 14' 35'
'1.64'
Wagram
- -Rate
01284 . Non Discharge Application
.WQ09 - Plant Available Nitrogen.
0 :5• ;
63:32
270
inches
lbs/ac
2
Sager Creak Feeds, Inc.. •
Sampson
34° 58' 21"
-78°.14'38'
3.23
- Wag s.=
01284 -Non-Discharge Application Rate
WQ09 - Plant AvailableNitrogen,
0,5
50.64'
270
incites
11is/ac
3`
Sager CreekFoods, Inc.
" Sampson- '
•34° 58'_ 15" _
-78° 14' 37"
11;62,
Wagram
01284 -Non-Discharge Application Rate
WQ09 -Plant Available Nitrogen'
0:5
51:05.
270
inches-
lbs/ac
4.
Sager Creek Foods, Inc.
Sampson
34° 58' 11"
-78°:14`37"
1.89
; Noboco
01284 -Non-Discharge Application Rate
WQ09 . Plant Available Nitrogen
0.5• i
- ?
9:37
299
inches
Ibs/ac
5
Sager Creek Foods', Inc:
Sampson
34° 58' 09"
-78° 14' 40"
0.78 .
Noboco,
01284• -,Non-Discbarge.Application Rate
•WQ09 -Plant Available Nitrogen
0:5
9.26
299
inches
lbs/ac ...
6
Sager Creek Foods,' Inc,
Sampson'
._
34°'58' 67"
-78° 14' 40"
1.94
,Noboco
01284 -Non=Discharge Application Rate
WQ09 - Plant Available Nitrogen
' 0:5 ;
36:77
299
inches
lbs/ac
7
-Sager Creak Foods, Inc. ,.
Sampson
34° 58' 16"
-78° 14' 32"
1.00
Noboco • .
01284 - Non -Discharge Application Rate
Plant Available N
, WQ09- . Nitrogen;
0.5
'
27.73
299.
inches
1bsla'c.
. 8
Sager Creek Foods; Inc.
. Sampson
34° 58' 1?"
-78° 14' 27"
2.59 •
Wagram
.01284 Non:Discharge Application Rate
WQ09 - Plant Available Nitrogen .
0:5 `,
33.96• •
. 270 ,
inches '
lbsiac
9'
Sager Creek Foods; Inc.
Sampson ,
'34° 58' 07"
-78° 14' 30"
0.79
Noboco
:
01284-Non=Discharge Application Rate
WQ09 -Plant Available Nitrogen
0,5
, •
22.48
299 -
inches ..
lbs/ac :
01284 Non Discii Rate
0.5`
es
10
Sager Creek Foods, Inc.
Sampson :
34° 58' 20"
-78° 14' 21"
1.33 .
Wagram.
lab Nitrogen:
WQ09 - Plant Avai le - ogeelbs/ac
2 02 '
11.
Sager Creek Foods, Inc.
Sampson
94° 58' 16"
-78° 14'22"
0:6.7
Wagram
01284-Non=Discharge Application Rate
• WQ09 - Plant Available Nitrogen
0:5 j
62:13
. 270 -
inches
lbs/ac
WQ0004268 Version 3.0

12
Sager Creek Foods, Inc.
Sampson
;34° 58' 117.
'-78° 14' 23'.
3.74 -
V►ragram
01284 —Non-Discharge Application Rate
0,5
61.13 ,
inches
WQ09— Plant .Available Nitrogen,
270
lbs/ac
13
Sager Creek Foods, Inc.
Sampson
34° 58' 07"
-78° 14.' 25"
2.13
Wagrnm
01284 —Non-Discharge Application Rate
0.5 .
57.54
inches
WQ09:— Plant Available Nitrogen
270
lbs/ac
14 .
Sager Creek Foods, Inc.
Sampson
34° 58' 17"
-78° 14.':14"
7.55
Wagram
01284—Non-Discharge Application Rate
0.5
61.72
inches,
.
WQ09 - Plant Available Nitrogen
.270 .
lbs/ac
15
Sager Creek Foods, Inc.
Sampson'
' 34° 58':09"
-78° 14' 18"
0:97
Noboco
01284 — Non -Discharge Application Rate
0.5
57.3
inches
WQ09 —Plant Available Nitrogen
299
lbs/ac
16
Sager Creek Foods, Inc.
Sampson
34° 58'-04" :
-78° 1.4'� 13"
7:20
Wagratrr
01284 - Non -Discharge Application Rate
0.5
58,25
inches
WQ09 — Plant Available Nitrogen •
270
lbs/ac
17
Sager Creek Foods, Inc.
)Sampson
34° 58' OS"
-78° I4 08"
2.27'
Noboco
01284—Non-Discharge Application Rate
0.5
9.91'
inches
WQ09 — Plant Available Nitrogen
299
lbs/ac
18
Sager Creek Foods; Inc:
Sampson
34°"58' 08"
-78° 13',59".
8.87 .
Tarboro
01284 - Non -Discharge Application Rate
0.5
57.52 .
inches
-
WQ09 — Plant Available Nitrogen
200
lbs/ac
I8A
Sager Creek Foods, Inc.
Sampson
' 34° 58' 08"-
-78" 14' 06"
6.56
Tarboro
01284.- Non -Discharge Application Rate
0,5
57.52
inches
WQ09 - Plant Available Nitrogen .
200
lbs/ac
Totals
J.6 6.
05g. 3I)
50 lbs/ac of Plant Available Nitrogen may be applied to each irrigation field in the winter for doable -cropping.
WQ0004268 Version 3.0- AttachmentB Page 2 of 2

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Parcels (Yellow)
Tax Bill
Deed
PIN: • 18053760005
OWNER: KAMCP, LLC
OWNER ADDRESS:
585 CROSS CREEK TRL
-OWNER CITY: GIBSONVILLE
OWNER STATE: NC
OWNER ZIP: 27249
ACREAGE: 38.71
APN: •-2434
BK PG: 1973/704
DATE RECORDED: 4/28/2017
LAND TAX DEFERRED: 0
ASSESSED VALUE: 2527609
TOTAL TAX VALUE: 2527609
SITE ADDRESS: 5900 TURKEY HWY
TWP. CODE:
TAX CODE: "F10
SEG TYPE: COMMIRESIDENT
CONSIDERATION: 900000
APPR SEG VALUE: $329,100I$33,540
USE DESC:
TYPICAL OFFICEIMEDIUM
INDUSTRIALIMEDIUM
INDUSTRIALIWAREHOUSE
STORAGEITYPICAL OFFICEIMEDIUM
INDUSTRIALISHEDITRUCK
SCALESIWATER TANK (BY 1000)
IPUMP HOUSEIRAIL ROAD
SIDINGISHOPI6F1- CHAIN LINK ;
FENCEIPUMP HOUSEIMETAL TANK
(BY 1000)IM ETAL TANK (BY 1000)
ITRUCK S
PARCEL CLASS: RESIDENTIAL I,
GIS_APN: - 24340040
GEO_PIN:- 2434188788
CALC_ACRES: 34.601305
STATUS: Reviewed IV
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• :STING
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= = Access Road
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Sampson County, NC
S&ME Project #1588-05-019
FIGURE
3

State of North CarolinaD.
Department of Environmental Quality
Division of Water Resources
WATER QUALITY REGIONAL OPERATIONS SECTION
Division of Water. Reso NON -DISCHARGE APPLICATION REVIEW REQUEST FORM
November 3, 2017
To: RO-WQROS Trent.Alle
From: Ashley Kabat, Water Quality Permitting Section. - Non -Discharge_ Permitting Unit
FAYETTEVIL ECIR®S ONAL OFFICE
Permit Number: WQ0004268 Permit Type: Wastewater Irrigation
Applicant: Murphy -Brown LLC Project. Type: Change of Ownership
Owner Type: Organization Owner in.BIMS? Yes
Facility Name: Sager, Creek Vegetable Company Facility in BIMS? Yes
Signature Authority: Joan Lee Title: Senior Vice President
Address: PO Box 856, Warsaw, NC 28398 County: Sampson
Fee Category: Non -Discharge Major Fee Amount: $0
Comments/Other Information:
RECEIVED
DEQ/DWR
NOV 072017
Attached, you will find all information submitted in support- of the above -referenced application for your review,
comment, and/or action. Within 45 calendar days, please take the following actions:
Return this form completed. Z . Return a completed staff report.
❑ Attach an Attachment B for Certification. ❑ Issue an Attachment B Certification.
When you receive this request form, please write your name and dates in the spaces below, make a copy of this sheet, and
return it to the appropriate Central Office Water Quality Permitting Section contact person listed above.
RO-WQROS Reviewer:
Date:
FORM: WQROSNDARR 09-15 Page 1 of 1

ROY COOPER
h';• Governor
Water Resources
ENVIRONMENTAL QUALITY
November 3, 2017
JOAN LEE — SENIOR VICE PRESIDENT
MURPHY-BROWN LLC
PO BOX 856
WARSAW, NC 28398
Dear Ms. Lee:
MICHAEL S. REGAN
Secretary
S. JAY ZIMMERMAN.
Director
Subject: Acknowledgement of
Application No. WQ0004268
Sager Creek Vegetable Company
Wastewater Irrigation System
Sampson County
The Water Quality Permitting Section acknowledges' receipt of your permit application and
supporting documentation received on November 2, 2017. Your application package has been assigned the
number listed above, and the primary reviewer is Ashley Kabat.
Central and Regional Office staff will perform a detailed review of the provided application, and
may contact you with a request for additional information. To ensure maximum efficiency in processing
permit applications, the Division of Water Resources requests your assistance in providing a timely and
complete response to any additional information requests.
Please note that processing standard review permit applications may take as long as 60 to 90 days
after receipt of a complete application. If you have any questions, please contact
Ashley Kabat at [phone] or [e-mail].
Sincerely,
Nathaniel D. Thornburg, Supervisor
Division of Water Resources
cc: Fay-.eT-fevillee=RegionalOffiee-Water-Quality-Regioial-Operations::Se io
Permit File WQ0004268
Nothing Compares;.._
State of North Carolina I Environmental Quality I Water Resources I Water Quality Permitting I Non -Discharge Permitting
1617 Mail Service Center I Raleigh, North Carolina 27699-1617 .
919-807-6332

Smithfield.
6600d food. 'Respoatsible
October 26, 2017
North Carolina Department of Environmental Quality
Division of Water Resources
Water quality Permitting Section
Non -Discharge Permitting Unit
1617 Mail Service Center
Raleigh, NC 27699-1617
To whom it may concern,
RECEI+, rit4cr, JDNR
NOV 42 2017
Non -Discharge
Permitting Unit
On or around October 13, 2017, Murphy -Brown d.b.a. Smithfield Hog Production Division, purchased
the land and waste storage lagoons associated with the Non -Discharge Permit issued to the Sager Creek
Vegetable Company. The facility is located in Turkey, N.C. , and the existing permit is numbered as
WQ0004268, issued June 8, 2016. By way of this letter, and the attached Form NDPONC 06-16,
Murphy -Brown is requesting that the owner and name of this permit be changed. In addition to the
attached form and material, I would ask that you consider the following changes to the permit as a part
of this change in ownership.
1. Murphy -Brown has purchased the land and waste storage lagoons only. We did not purchase the
Sager Creek Foods processing facility, or any of the pre-treatment facilities. Based on this, there
is no process wastewater flow to the waste storage lagoons, with the only additional volume
addition being rainfall excess of evaporation falling on the lagoons themselves. All connections
from the previously operated processing facility have been permanently disconnected on both
sides of the property line between the two. I would ask that you change the page one pre -amble
to reflect this, and eliminate references to the operation of a 415,000 GPD wastewater treatment
and irrigation facility. In addition, please remove any reference to `approximately 2500 linear
feet of 12-inch gravity sewer, four stationary screens with 0.1" spacings, two screw presses, four
screw conveyors; a 38 cubic yard hopper; a 10,000 gallon storage tank with a 75 GPM flush
return pump for use with the deemed permitted closed -loop recycle gutter flush system; two 800
ft2 concrete lined settling basins; a 650 GPM influent pump station with duplex pumps and high
water alarms; approximately 350 LF of 8 inch force main;'. In addition, please correct the acres
listed in this section to reflect the 167.06 acres listed in Attachment B of the permit.
2. Based on the fact that there is no longer an effluent stream present, I would ask that Attachment
A be revised to reflect a monitoring frequency of 3 times per year for PCS-.Cole 00610 00625
'0066 ;U0400 an0"Q665i Also, given no effluent stream, we would ask that PCS Code 50050
be removed. For all remaining PCS codes, we would ask that the frequency be reduced to
annually.
3. As a part of this transaction, approximately 15 acres of land South of the railroad right of way
was deeded to the new owner of the actual processing facility. While none of this land was
technically in the land application area, it does require a new property line buffer to be
established in Field A(1-9). We will not be using the existing solid set irrigation system in this
field, but would ask that the field acreage for this field be reduced to 37.5 acres to reflect the

buffer area described above. I have included for your reference a letter sent to the Division on
May 17,.2017 advising them on the sale of the former processing plant and the 15 acres south of
the railroad referenced above.
As time moves on, we will be making additional requests related to this permit that will facilitate the
closure of the two existing lagoon structures on the site. The longer term plan was discussed on site
with representatives from Fayetteville Regional office on October 26, 2017. We are reserving these
changes as they will take additional time to evaluate and change in the permit, and there is time
sensitivity on the part of Smithfield and Del Monte to execute this change of ownership as expeditiously
as possible.
If there are questions or concerns, please feel free to contact me at [phone], or by email at
[e-mail].
g Westerbeek
for Director
ithfield HPD
Enc.

D
Division of Water Resources
State of North Carolina
Department -of Environmental Quality
Division of Water Resources
NON-DrRG , ERM)F NERSHIP/NAME CHANGE
`' � i c— � � � FORM: NDPONC 06-16
NUV ®Z017
I. EXISTING PERMITTEE INFORMATION:
1. Permittee's name: Sager Creek Ve etabl�y Compan Non -Discharge
i Unit
g g Y ��rrsiiti�ng �rtid
2. Signature authority's name: artMize per 15A NCAC 02T .0106(b) Title: Director, Vegetable Operations
3. Permittee's mailing address: PO Box 250
City: Siloam Springs
State: Arkansas Zip: 72761-
4. Permittee's contact information: Phone number: [phone] Email Address: a1len.mizena,delmonte.com
5. Demonstration of historical consideration for permit approval — 15A NCAC 02T .0120:
Has the Permittee or any parent, subsidiary or other affiliate exhibited the following?
a. Has been convicted of environmental crimes under Federal law or G.S. 143-215.6B? ❑ Yes or /1 No
b. Has previously abandoned a wastewater treatment facility without properly closing that facility? ❑ Yes or ® No
c. Has unpaid civil penalty where all appeals have been abandoned or exhausted? ❑ Yes or ® No
d. -Is non -compliant with an existing non -discharge permit, settlement agreement or order? ❑ Yes or ® No
e. Has unpaid annual fees in accordance with 15A NCAC 02T .0105(e)(2)? ❑ Yes or ® No
R. FACILITY INFORMATION:
1. Facility name: Sager Creek Vegetable Company
2. Facility's physical address: 5900 Turkey Highway
City: Turkey State: NC Zip: 28393-9030
County: Sampson
III. PERMIT INFORMATION:
1. Existing permit number: WQ0004268 and most recent issuance date: June 8, 2016
2. Existing permit type: Wastewater Irrigation
3. Reason for the permit application: Change of Ownership
4. Has the facility been constructed? ® Yes or ❑ No
IV. APPLICANT INFORMATION:
1. Applicant's name: Murphy -Brown dba Smithfield Hog Production Division
2. Signature authority's name: Joan Lee per 15A NCAC 02T .0106(b)
3. Applicant's mailing address: PO Box 856
City: Warsaw State: NC Zip: 28398-
4. Applicant's contact information: Phone number: [phone] Email Address: [e-mail]
5. Demonstration of historical consideration for permit approval — 15A NCAC 02T .0120:
Has the Applicant or any parent, subsidiary or other affiliate exhibited the following?
a. Has been convicted of environmental crimes under Federal law or G.S. 143-215.6B? ❑ Yes or ® No
b. Has previously abandoned a wastewater treatment facility without properly closing that facility? ❑ Yes or ® No
c. Has unpaid civil penalty where all appeals have been abandoned or exhausted? ❑ Yes or ® No
d. Is non -compliant with an existing non -discharge permit, settlement agreement or order? ❑ Yes or ® No
e. Has unpaid annual fees in accordance with 15A NCAC 02T .0105(e)(2)? ❑ Yes or ® No
Title: Senior Vice President
FORM: NDPONC 06-16 Page 1 of 2

Division of Water Resources
C,:7CEIVEDINCDEQ/DVIR State of North Carolina
Department of Environmental Quality
NOV — 2 2017 Division of Water Resources
Nchp_NzpActIARGE PERMIT OWNERSHIP/NAME CHANGE
INSTRUCTIONS FORIMWriNDANC 06-16 & SUPPORTING DOCUMENTATION
This form is for ownership changes or name changes of a non -discharge system permit. Please note that "Permittee"
references the existing permit holder, and that "Applicant" references the entity applying for the ownership/name change.
For more information, visit the Water Quality Permitting Section's Non -Discharge Permitting Unit website
A. Non -Discharge Permit Ownership/Name Change (FORM: NDPONC 06-16) Application (All Applications):
Submit an original completed and appropriately executed Non -Discharge Permit Ownership/Name Change (FORM: NDPONC
06-16) application.
❑ The Existing Permittee's Certification shall be signed in accordance with 15A NCAC 02T .0106(b). Per 15A NCAC 02T
.0106(c), an alternate person may be designated as the signing official if a delegation letter is provided from a person who
meets the criteria in 15A NCAC 02T .0106(b).
❑ The Applicant's Certification shall be signed in accordance with 15A NCAC 02T .0106(b). Per 15A NCAC 02T .0106(c), an
altemate person may be designated as the signing official if a delegation letter is provided from a person who meets the criteria
in 15A NCAC 02T .0 106(b).
B. E sting Permit (All Applications):
Submit a copy of the most recently issued permit.
C. Property Ownership Documentation (All Applications):
> Per 15A NCAC 02T .0504(f), 15A NCAC 02T .0604(e), 15A NCAC 02T .0704(f), 15A NCAC 02T .0804, 15A NCAC 02T
.1004(d), 15A NCAC 02T .1104(d)(7), 15A NCAC 02T .1104(e)(5), 15A NCAC 02U .0201(e) or 15A NCAC 02U .0202(f),
the Applicant shall demonstrate they are the owner of all property containing the non -discharge system facilities:
Cl Legal documentation of ownership (i.e., GIS, deed or article of incorporation), or
EMI Written notarized intent to purchase agreement signed by both parties with a plat or survey map, or
❑ Written notarized lease agreement that specifically indicates the intended use of the property and has been signed by both
parties, as well as a plat or survey map. Lease agreements shall adhere to the requirements of 15A NCAC 02L .0107.
D. Certificate of Public Convenience and Necessity (All Applications where the Applicant is a Privately -Owned Public Utility):
❑ Per 15A NCAC 02T .0115(a)(1), provide one copy of the Certificate of Public Convenience and Necessity from the North
Carolina Utilities Commission demonstrating the Applicant is authorized to hold the utility franchise for the area to be served
by the non -discharge system.
E. Operational Agreements (All Applications where the Applicant is a Home/Property Owners' Association or Developer of lots to
be sold):
> Home/Property Owners' Associations
❑ Per 15A NCAC 02T .0115(c), submit an original properly executed Operational Agreement (FORM: HOA).
❑ Per 15A NCAC 02T .0115(c), submit an original proposed or approved Articles of Incorporation, Declarations and By-
laws.
> Developers of lots to be sold
❑ Per 15A NCAC 02T .0115(b), submit an original of the properly executed Operational Agreement (FORM: DEV).
F. Operation and Maintenance Agreement (All Applications for Single -Family Wastewater Irrigation Systems):
❑ Per 15A NCAC 02T .0604(h), submit an original of a notarized Operation and Maintenance Agreement (FORM: SFRWWIS
O&M) that has been signed and dated by all deeded property owners.
THE COMPLETED APPLICATION AND SUPPORTING DOCUMENTATION SHALL BE SUBMITTED TO:
NORTH CAROLINA DEPARTMENT OF ENVIRONMENTAL QUALITY
DIVISION OF WATER RESOURCES
WATER QUALITY PERMITTING SECTION
NON -DISCHARGE PERMITTING UNIT
BY U.S. Postal Service:
1617 MAIL SERVICE CENTER
RALEIGH, NORTH CAROLINA 27699-1617
TELEPHONE NUMBER: [phone]
By Courier/Special Delivery:
512 N. SALISBURY ST.
RALEIGH, NORTH CAROLINA 27604
FAX NUMBER: [phone]
INSTRUCTIONS FOR FORM: NDPONC 06-16 & SUPPORTING DOCUMENTATION Page 1 of 1

n (Signature Authority's name & title from Application Item I.2.)
�4,Q E tr i ,4 !eG it i Pi9 'y
(Facility name from Application Item II.1.)
has been reviewed by me and is accurate and complete to the best of my knowledge. I understand that prior to reissuance of the permit
into the Applicant's name, any discharge of wastewater from this non -discharge system to surface waters or the land will result in an
enforcement action that may include civil penalties, injunctive relief, and/or criminal prosecution. I will make no claim against the
Division of Water Resources should a condition of the existing permit be violated. I also understand that if all required parts of this
application package are not completed and that if all required supporting information and attachments are not included, this application
package will be returned as incomplete. I further certify that the existing Permittee or any affiliate has not been convicted of an
environmental crime, has not abandoned a wastewater facility without proper closure, does not have an outstanding civil penalty where
all appeals have been exhausted or abandoned, are compliant with any active compliance schedule, and do not have any overdue annual
fees per 15A NCAC 02T .0105(e).
Existing Permittee'sJ�pCerttification per 15A NCAC 02T .0106(b): ^ I�
I, 1`fLLEJrf L hl j t / J� ( R) Di) P-.A-\ lOII�$ attest that this application for
NOTE — In accordance with General Statutes 143-215.6A and 143-215.6B, any person who knowingly makes any false statement,
representation, or certification in any application package shall be guilty of a Class 2 misdemeanor, which may include a fine not to
exceed $10,000 as well apjcivil .penalties up to $25,000 per violation.
Signature:
-2,<g
Date:
Applicant's Cyertification per 15A NCAC 02T .0106
1
el Air
ignature Authority's name & title from Application Item IV.2.)
attest that this application for
(Facility name from Application Item II.1.)
has been reviewed by me and is accurate and complete to the best of my knowledge. I understand that after reissuance of the permit
into the Applicant's name, any discharge of wastewater from this non -discharge system to surface waters or the land will result in an
enforcement action that may include civil penalties, injunctive relief, and/or criminal prosecution. I will make no claim against the
Division of Water Resources should a condition of this permit be violated. I also understand that if all required parts of this application
package are not completed and that if all required supporting information and attachments are not included, this application package
will be returned to me as incomplete. I further certify that the Applicant or any affiliate has not been convicted of an environmental
crime, has not abandoned a wastewater facility without proper closure, does not have an outstanding civil penalty where all appeals have
been exhausted or abandoned, are compliant with any active compliance schedule, and do not have any overdue annual fees per 15A
NCAC 02T .0105(e).
NOTE — In accordance with General Statutes 143-215.6A and 143-215.6B, any person who knowingly makes any false statement,
representation, or certification in any application package shall be guilty of a Class 2 misdemeanor, which may include a fine not to
exceed $10,000 as well as civil penalties up to $25,000 per vi ation.
Signature:
a„.1/4„
- I Date:
101)4/
FORM: NDPONC 06-16
Page 2 of 2

Water Resources
ENVIRONMENTAL DUALITY
June 28, 2016
DAVID MCLAIN — PRESIDENT
SAGER CREEK FOODS, INC.
POST OFFICE BOX 250
SILOAM SPRINGS, ARKANSAS 72761
Dear Mr. McLain:
PAT MCCRORY
Governor
DONALD R. VAN DER VAART
Secrera,y
S. JAY ZIMMERMAN
Director
Subject: Permit No. WQ0004268
Sager Creek Vegetable Company
Wastewater Irrigation System
Sampson County _
In accordance with your permit change of ownership and renewal request received February 3,
2015, we are forwarding herewith Permit No. WQ0004268 dated June 28, 2016, to Sager Creek Foods, Inc.
for the continued operation of the subject wastewater treatment and irrigation facilities.
Please note the Permittee has been changed from Aliens, Inc. to Sager Creek Foods, Inc.
This permit shall be effective from the date of issuance until May 31, 2021, shall void Permit No.
WQ0004268 issued June 19, 2009, and shall be subject to the conditions and limitations as specified therein.
Please pay particular attention to the monitoring requirements listed in Attachments A, B and C for they
may differ from the previous permit issuance. Failure to establish an adequate system for collecting and
maintaining the required operational information shall result in future compliance problems.
If any parts, requirements or limitations contained in this permit are unacceptable, the Permittee
has the right to request an adjudicatory hearing upon written request within 30 days following receipt of
this permit. This request shall be in the form of a written petition, conforming to Chapter 150Eof the North
Carolina General Statutes, and filed with the Office of Administrative Hearings at 6714 Mail Service
Center, Raleigh, NC 27699-6714. Unless such demands are made, this permit shall be final and binding.
If you need additional information concerning this permit, please contact Nathaniel Thornburg at
[phone] or [e-mail].
Sincerely,
S. Jay Zimmerman, P.G., Director
Division of Water Resources
cc: Sampson County Health Department (Electronic Copy)
Fayetteville Regional Office, Water Quality Regional Operations Section (Electronic Copy)
Digital Permit Archive (Electronic Copy)
Central Files
State of North Carolina I Environmental Quality I Water Resources I Water Quality Permitting I Non -Discharge Permitting
1617 Mail Service Center I Raleigh, North Carolina 27699-1617
919 807 6464

TITIS PAGE BLANK

NORTH CAROLINA
ENVIRONMENTAL MANAGEMENT COMMISSION
DEPARTMENT OF ENVIRONMENTAL QUALITY
RALEIGH
WASTEWATER IRRIGATION SYSTEM PERMIT
In accordance with the provisions of Article 21 of Chapter 143, General Statutes of North Carolina as
amended, and other applicable Laws, Rules and Regulations
PERMISSION IS HEREBY GRANTED TO
Sager Creek Foods, Inc.
Sampson County
FOR THE
continued operation of a 415,000 gallon per day (GPD) wastewater treatment and irrigation facility
consisting of:
approximately 2,500 linear feet (LF) of 12-inch gravity sewer; four stationary screens with 0.1-inch
spacings; two screw presses; four screw conveyors; a 38 cubic yard hopper; a 10,000 gallon storage tank
with a 75 gallon per minute (GPM) flush return pump for use with the deemed permitted closed -loop recycle
gutter flush system; two 800 square foot (ft2) concrete lined settling basins; a 650 GPM influent pump
station with duplex pumps and high water alarms; approximately 350 LF of 8-inch force main; an
approximate�three acre (i.e., 50 million gallon) final settling lagoon; a727 acme treated wastewater storagJ
.,,lagoon;? an irrigation pump station with three 1,350 GPM pumps and audible/visual high water alarms;
approximately 100 acres of spray irrigation fields (i.e., Fields A, B, C and D); a second irrigation pump
station with three 875 GPM pumps, a 25 GPM jockey pump and audible/visual high water alarms;
approximately 16,277 LF of 12-inch force main; approximately 66.76 acres of irrigation area (i.e., Zones 1
through 18a); and all associated piping, valves, controls and appurtenances
to serve the Sager Creek Vegetable Company, with no discharge of wastes to surface waters, pursuant to
the application received February 3, 2015, and in conformity with the project plans, specifications, and
other supporting data subsequently filed and approved by the Department of Environmental Quality and
considered a part of this permit.
This permit shall be effective from the date of issuance until May 31, 2021, shall void Permit No.
WQ0004268 issued June 19, 2009, and shall be subject to the following specified conditions and
limitations:
WQ0004268 Version 3.0
Shell Version 151201 Page 1 of 9

I. SCHEDULES
1. The Permittee's recorded effluent force main easements with James D. and Nyda W. Sutton (Book
01742, Pages 0603-0606), and Milton Douglas and Connie M. Carr (Book 01742, Pages 0598-0602)
shall remain in effect for the life of the permitted subject facilities. If either of the effluent force main
easements is terminated by any of the subject parties, operation of the subject effluent force main and
irrigation Zones 1 through 18A shall cease immediately, and the Permittee shall modify this permit
accordingly. [15A NCAC 02T .0108(b)(2)]
2. No later than six months prior to the expiration of this permit, the Permittee shall request renewal of
this permit on official Division forms. Upon receipt of the request, the Division will review the
adequacy of the facilities described therein, and if warranted, will renew the permit for such period of
time and under such conditions and limitations as it may deem appropriate. Please note Rule 15A
NCAC 02T .0105(d) requires an updated site map to be submitted with the permit renewal application.
[15A NCAC 02T .0105(d), 02T .0106, 02T .0109, 02T .0115(c)]
II. PERFORMANCE STANDARDS
1. The subject non -discharge facilities shall be effectively maintained and operated at all times so there is
no discharge to surface waters, nor any contravention of groundwater or surface water standards. In
the event the facilities fail to perform satisfactorily, including the creation of nuisance conditions due
to improper operation and maintenance, or failure of the irrigation areas to adequately assimilate the
effluent, the Permittee shall takeimmediate corrective actions including Division required actions, such
as the construction of additional or replacement wastewater treatment or irrigation facilities. [G.S. 143-
215.1, 143-213.3(a)]
2. This permit shall not relieve the Permittee of their responsibility for damages to groundwater or surface
water resulting from the operation of this facility. [15A NCAC 02B .0200, 02L .0100]
3. All wells constructed for purposes of groundwater monitoring shall be constructed in accordance with
15A NCAC 02C .0108 (Standards of Construction for Wells Other than Water Supply), and any other
jurisdictional laws and regulations pertaining to well construction. [15A NCAC 02C .0108]
4. Effluent quality shall not exceed the limitations specified in Attachment A. [15A NCAC 02T
.0108(b)(1)]
5. Application rates, whether hydraulic, nutrient or other pollutant, shall not exceed those specified in
Attachment B. [15A NCAC 02T .0505(c), 02T .0505(n)]
6. This disposal system was individually permitted on or after December 30, 1983; therefore, the
compliance boundary is established at either 250 feet from the effluent disposal area, or 50 feet within
the property boundary, whichever is closest to the effluent disposal area. An exceedance of
groundwater standards at or beyond the compliance boundary is subject to remediation action according
to 15A NCAC 02L .0106(d)(2) as well as enforcement actions in accordance with North Carolina
General Statute 143-215.6A through 143-215.6C. [15A NCAC 02L .0106(d)(2), 02L .0107(b)]
7. In accordance with 15A NCAC 02L .0108, the review boundary is established midway between the
compliance boundary and the effluent disposal area. Any exceedance of groundwater standards at the
review boundary shall require action in accordance with 15A NCAC 02L .0106. [15A NCAC 02L
.0106, 02L .0108]
8. The Permittee shall apply for a permit modification to establish a new compliance boundary prior to
any sale or transfer of property affecting a compliance boundary. [15A NCAC 02L .0107(c)]
9. In accordance with 15A NCAC 02L .0107(d), no wells, excluding Division approved monitoring wells,
shall be constructed within the compliance boundary except as provided for in 15A NCAC 02L
.0107(g). [15A NCAC 02L .0107]
WQ0004268 Version 3.0 Shell Version 151201 Page 2 of 9

10. Except as provided for in 15A NCAC 02L .0107(g), the Permittee shall ensure any landowner who is
not the Permittee and owns land within the compliance boundary shall execute and file with the
Sampson County Register of Deeds an easement running with the land containing the following items:
a. A notice of the permit and number or other description as allowed in 15A NCAC 02L .0107(f)(1);
b. Prohibits construction and operation of water supply wells within the compliance boundary; and
c. "Reserves the right of the Permittee or the State to enter the property within the compliance boundary
for purposes related to the permit.
The Director may terminate the easement when its purpose has been fulfilled or is no longer needed.
[15A NCAC 02L .0107(f)]
11. The facilities permitted herein shall be constructed according to the following setbacks:
a. The setbacks for irrigation sites permitted under 15A NCAC 02H .0200 (i.e., Fields A, B, C and
D) shall be as follows (all distances in feet):
i. Any habitable residence or place of public assembly under separate ownership: 400
ii. Surface waters: 100
iii. Any well with exception of monitoring wells: 100
iv. Any property line: 150
v. Public right of way: 50
[15A NCAC 02H .0219(j)]
b. The setbacks for irrigation sites permitted under 15A NCAC 02T .0500 (i.e., Zones 1 through 18A)
shall be as follows (all distances in feet):
i. Any habitable residence or place of public assembly under separate ownership: 400
ii. Any habitable residence or place of public assembly owned by the Permittee: 200
iii. Any private or public water supply source: 100
iv. Surface waters: 100
v. Groundwater lowering ditches: 100
vi. Surface water diversions: 25
vii. Any well with exception of monitoring wells: 100
viii.Any property line: 150
ix. Top of slope of embankments or cuts of two feet or more in vertical height: 15
x. Any water line from a disposal system: 10
xi. Subsurface groundwater lowering drainage systems: 100
xii. Any swimming pool: 100
xiii.Public right of way: 50
xiv. Nitrification field: 20
xv. Any building foundation or basement: 15
[15ANCAC 02T .0506(a)]
WQ0004268 Version 3.0
Shell Version 151201 Page 3 of 9

c. The setbacks for storage and treatment units permitted under 15A NCAC 02H .0200 shall be as
follows (all distances in feet):
i. Any well with exception of monitoring wells: 100
ii. Any property line:
[15A NCAC 02H .0219(j)]
50
d. The setbacks for storage and treatment units permitted under 15A NCAC 02T .0500 (i.e., screening
facility, etc.) shall be as follows (all distances in feet):
i. Any habitable -residence or place of public assembly under separate ownership: 100
ii. Any private or public water supply source: 100
iii. Surface waters: 50
iv. Any well with exception of monitoring wells: 100
v. Any property line: 50
[15A NCAC 02T .0506(b)]
12. The Permittee has approved the location of monitoring wells. R-1, R-3, R-4, R-6, R-7 and R-8 within
the review boundary as specified in 15A NCAC 02L .0108. Per a letter dated April 1, 2009, in the event
of 02L Groundwater Standard exceedances in any of monitoring wells R-1, R-3, R-4, R-6, R-7 and R-
8, the Permittee has agreed to take the necessary actions cited in 15A NCAC 02L .0106(d)(1), or
abandon the aforementioned wells within the review boundary that exceed 02L Groundwater Standards
and replace said well(s) with new downgradient monitoring wells on the review boundary as defined
in 15A NCAC 02L .0108. [15A NCAC 02T .0108(b)(1)]
M. OPERATION AND MAINTENANCE REQUIREMENTS
1. The facilities shall be properly maintained and operated at all times. The facilities shall be effectively
maintained and operated as a non -discharge system to prevent the discharge of any wastewater resulting
from the operation of this facility. The Permittee shall maintain an Operation and Maintenance Plan,
which at a minimum shall include operational functions, maintenance schedules, safety measures and
a spill response plan. [15A NCAC 02T .0507]
2. Upon the Water Pollution Control System Operators Certification Commission's (WPCSOCC)
classification of the subject non -discharge facilities, in accordance with 15A NCAC 08G .0200 the
Permittee shall designate and employ a certified operator in responsible charge (ORC) and one or more
certified operator(s) as back-up ORC(s). The ORC or their back-up shall visit the facilities in
accordance with 15A NCAC 08G .0200, and shall comply with all other conditions specified in the
previously cited rules. [15A NCAC 02T .0117]
3. A suitable year round vegetative cover shall be maintained at all times, such that crop health is
optimized, allows for even distribution of effluent and allows inspection of the irrigation system. [15A
NCAC 02T .0108(b)(1)]
4. Adequate measures shall be taken to prevent effluent ponding in or runoff from the irrigation sites listed
in Attachment B. [15A NCAC 02T .0108(b)(1)]
5. Irrigation shall not be performed during inclement weather or when the ground is in a condition that
will cause ponding or runoff. [15A NCAC 02T .0108(b)(1)]
6. All irrigation equipment shall be tested and calibrated at least once per permit cycle. Calibration records
shall be maintained at the facility for a period of no less than five years, and shall be made available to
the Division upon request. [15A NCAC 02T .0108(b)(1)]
WQ0004268 Version 3.0
Shell Version 151201 Page 4 of 9

7. Only effluent from the Sager Creek Vegetable Company shall be irrigated on the sites listed in
Attachment B. [G.S. 143-215.1]
8. No automobiles or machinery shall be allowed on the irrigation sites except during equipment
installation or while maintenance is being performed. [15A NCAC 02T .0108(b)(1)]
9. Public access to the irrigation sites and wastewater treatment facilities shall be prohibited. [15A NCAC
02T .0505(q)]
10. The residuals generated from the wastewater treatment facilities shall be disposed or utilized in
accordance with 15A NCAC 02T .1100. The Permittee shall maintain a residual management plan
pursuant to 15A NCAC 02T .0508. [15A NCAC 02T .0508, 02T .1100]
11. Diversion or bypassing of untreated or partially treated wastewater from the treatment facilities is
prohibited. [15A NCAC 02T .0505(j)]
12. Freeboard in the 3 acre settling lagoon and 27 acre storage lagoon shall not be less than two feet at any
time. [15ANCAC 02T .0505(d)]
13. Gauges to monitor waste levels in the 3 acre settling lagoon and 27 acre storage lagoon shall be
provided. These gauges shall have readily visible permanent markings, at inch or tenth of a foot
increments, indicating the following elevations: maximum liquid level at the top of the temporary liquid
storage volume; minimum liquid level at the bottom of the temporary liquid storage volume; and the
lowest point on top of the dam. [15A NCAC 02T .0108(b)(1)]
14. A protective vegetative cover shall be established and maintained on all earthen embankments (i.e.,
outside toe of embankment to maximum allowable temporary storage elevation on the inside of the
embankment), berms, pipe runs, erosion control areas, and surface water diversions. Trees, shrubs, and
other woody vegetation shall not be allowed to grow on the earthen dikes or embankments. Earthen
embankment areas shall be kept mowed or otherwise controlled and accessible. [15A NCAC 02T
.0108(b)(1)]
15. No spray application of water activities shall be undertaken on Field D when the seasonal high water
table is less than three feet below land surface. Verification of the water table elevation shall be
confirmed by water level readings obtained from monitor wells near the site or by using other
acceptable means, within 24 hours prior to application of wastewater. [15A NCAC 02T .0108(b)(1)]
IV. MONITORING AND REPORTING REQUIREMENTS
1. Any Division required monitoring (including groundwater, plant tissue, soil and surface water analyses)
necessary to ensure groundwater and surface water protection shall be established, and an acceptable
sampling reporting schedule shall be followed. [15A NCAC 02T .0108(c)]
2. A Division certified laboratory shall conduct all laboratory analyses for the required effluent,
groundwater or surface water parameters. [15A NCAC 02H .0800]
3. Flow through the treatment facility shall be continuously monitored, and daily flow values shall be
reported on Form NDMR.
The Permittee shall install and maintain an appropriate flow measurement device to ensure the accuracy
and reliability of flow measurement consistent with accepted engineering and scientific practices.
Selected flow measurement devices shall be capable of measuring flows with a maximum deviation of
less than ten percent from true flow; accurately calibrated at a minimum of once per year; and
maintained to ensure the accuracy of measurements is consistent with the selected device's accepted
capability. The Permittee shall maintain records of flow measurement device calibration on file for a
period of at least five years. At a minimum, documentation shall include:
a. Date of flow measurement device calibration,
WQ0004268 Version 3.0 Shell Version 151201 Page 5 of 9

b. Name of person performing calibration, and
c. Percent from true flow.
[15A NCAC 02T .0105(k)]
4. The Permittee shall monitor the effluent from the subject facilities at the frequencies and locations for
the parameters specified in Attachment A. [15A NCAC 02T .0108(c)]
5. The Permittee shall maintain adequate records tracking the amount of effluent irrigated. At a minimum,
these records shall include the following information for each irrigation site listed in Attachment B:
a. Date of irrigation;
b. Volume of effluent irrigated;
c. Site irrigated;
d. Length of time site is irrigated;
e. Continuous weekly, monthly, and year-to-date hydraulic (inches/acre) loadings;
f. Continuous monthly and year-to-date loadings for any non -hydraulic parameter specifically
limited in Attachment B;
g. Weather conditions; and
h. Maintenance of cover crops.
[15A NCAC 02T .0108(c)]
6. Freeboard (i.e., waste level to the lowest embankment elevation) in the 3 acre settling lagoon and 27
acre storage lagoon shall be measured to the nearest inch or tenth of a foot, and recorded weekly.
Weekly freeboard records shall be maintained at the facility for a period of no less than five years, and
shall be made available to the Division upon request. [15A NCAC 02T .0108(c)]
7. Three copies of all monitoring data (as specified in Conditions IV.3. and N.4.) on Form NDMR for
each PPI and three copies of all operation and disposal records (as specified in Conditions IV.5. and
IV.6.) on Form NDAR-1 for every site in Attachment B shall be submitted on or before the last day of
the following month. If no activities occurred during the monitoring month, monitoring reports are still
required documenting the absence of the activity. All information shall be submitted to the following
address:
Division of Water Resources
Information Processing Unit
1617 Mail Service Center
Raleigh, North Carolina 27699-1617
[15A NCAC 02T .0105(1)]
8. A record shall be maintained of all residuals removed from this facility. This record shall be maintained
at the facility for a period of no Less than five years, and shall be made available to the Division upon
request. At a minimum, this record shall include:
a. Name of the residuals hauler;
b. Non -Discharge permit number authorizing the residuals disposal, or a letter from a municipality
agreeing to accept the residuals;
c. Date the residuals were hauled; and
d. Volume of residuals removed.
[15A NCAC 02T .0108(b)(1)]
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9. A maintenance log shall be maintained at this facility. This log shall be maintained at the facility for a
period of no less than five years, and shall be made available to the Division upon request. At a
minimum, this log shall include:
a. Date of calibration of flow measurement device;
b. Visual observations of the plant and plant site; and
c. Record of preventative maintenance (e.g., changing of equipment, adjustments, testing, inspections
and cleanings, etc.).
[15A NCAC 02T .0108(b)(1)]
10. Monitoring wells shall be sampled at the frequencies and for the parameters specified in Attachment
C. All mapping, well construction forms, well abandonment forms and monitoring data shall refer to
the permit number and the well nomenclature as provided in Attachment C and Figure 1. [15A NCAC
02T .0105(m)]
11. Two copies of the monitoring well sampling and analysis results shall be submitted on a Compliance
Monitoring Form (GW-59), along with attached copies of laboratory analyses, on or before the last
working day of the month following the sampling month. The Compliance Monitoring Form (GW-59)
shall include this permit number, the appropriate well identification number, and one GW-59a
certification form shall be submitted with each set of sampling results. All information shall be
submittedto the following address:
Division of Water Resources
Information Processing Unit
1617 Mail Service Center
Raleigh, North Carolina 27699-1617
[15A NCAC 02T .0105(m)]
12. An annual representative soils analysis (i.e., Standard Soil Fertility Analysis) shall be conducted on
each irrigation site listed in Attachment B. These results shall be maintained at the facility for a period
of no less than five years, and shall be made available to the Division upon request. At a minimum, the
Standard Soil Fertility Analysis shall include the following parameters:
Acidity
Exchangeable Sodium Percentage
Phosphorus
Base Saturation (by calculation)
Magnesium
Potassium
Calcium
Manganese
Sodium
Cation Exchange Capacity
Percent Humic Matter
Zinc
Copper
pH
[15A NCAC 02T .0108(c)]
WQ0004268 Version 3.0 Shell Version 151201 Page 7 of 9

13. Noncompliance Notification:
The Permittee shall report by telephone to the Fayetteville Regional Office, telephone number (910)
433-3300, as soon as possible, but in no case more than 24 hours, or on the next working day following
the occurrence or first knowledge of the occurrence of any of the following:
a. Treatment of wastes abnormal in quantity or characteristic, including the known passage of a
hazardous substance.
b. Any process unit failure (e.g., mechanical, electrical, etc.), due to known or unknown reasons,
rendering the facility incapable of adequate wastewater treatment.
c. Any facility failure resulting in a by-pass directly to receiving surface waters.
d. Any time self -monitoring indicates the facility has gone out of compliance with its permit
limitations.
e. Ponding in or runoff from the irrigation sites.
Any emergency requiring immediate reporting (e.g., discharges to surface waters, imminent failure of
a storage structure, etc.) outside normal business hours shall be reported to the Division's Emergency
Response personnel at telephone number [phone], [phone], or [phone]. Persons
reporting such occurrences by telephone shall also file a written report in letter form within five days
following first knowledge of the occurrence. This report shall outline the actions taken or proposed to
be taken to ensure the problem does not recur. [15A NCAC 02T .0105(1), 02T .0108(b)(1)]
14. An agronomist shall conduct an annual report on each spray field due no later than March 15t. The
report shall address all current site management practices, recommended changes to management
practices, and overall efficiency of each field to continue to accept wastewater irrigation at the rates
established in this permit. [15A NCAC 02T .0108(b)(1)]
V. INSPECTIONS
1. The Permittee shall provide adequate inspection and maintenance to ensure proper operation of the
wastewater treatment and irrigation facilities. [15A NCAC 02T .0108(b)]
2. The Permittee or their designee shall inspect the wastewater treatment and irrigation facilities to prevent
malfunctions, facility deterioration and operator errors resulting in discharges, which may cause the
release of wastes to the environment, a threat to human health or a public nuisance. The Permittee shall
maintain an inspection log that includes, at a minimum, the date and time of inspection, observations
made, and any maintenance, repairs, or corrective actions taken. The Permittee shall maintain this
inspection log for a period of five years from the date of the inspection, and this log shall be made
available to the Division upon request. [15A NCAC 02T .0108(b)]
3. Any duly authorized Division representative may, upon presentation of credentials, enter and inspect
any property, premises or place on or related to the wastewater treatment and irrigation facilities
permitted herein at any reasonable time for the purpose of determining compliance with this permit;
may inspect or copy any records required to be maintained under the terms and conditions of this permit,
and may collect groundwater, surface water or leachate samples. [G.S. 143-21.5.3(a)(2)]
VI. GENERAL CONDITIONS
1. Failure to comply with the conditions and limitations contained herein may subject the Permittee to an
enforcement action by the Division in accordance with North Carolina General Statutes 143-215.6A to
143-215.6C. [G.S. 143-215.6A to 143-215.6C]
2. This permit shall become voidable if the permitted facilities are not constructed in accordance with the
conditions of this permit, the Division approved plans and specifications, and other supporting
documentation. [15A NCAC 02T .0110]
WQ0004268 Version 3.0 Shell Version 151201
Page 8 of 9

3. This permit is effective only with respect to the nature and volume of wastes described in the permit
application, Division approved plans and specifications, and other supporting documentation. No
variances to applicable rules governing the construction or operation of the permitted facilities are
granted, unless specifically requested and approved in this permit pursuant to 15A NCAC 02T .0105(n).
[G.S. 143-21.5.1]
4. The issuance of this permit does not exempt the Permittee from complying with any and all statutes,
rules, regulations, or ordinances, which may be imposed by other jurisdictional government agencies
(e.g., local, state, and federal). Of particular concern to the Division are applicable river buffer rules in
15A NCAC 02B .0200; erosion and sedimentation control requirements in 15A NCAC Chapter 4 and
under General Permit NCG010000; any requirements pertaining to wetlands under 15A NCAC 02B
.0200 and 02H .0500; and documentation of compliance with Article 21 Part 6 of Chapter 143 of the
General Statutes. [15A NCAC 02T .0105(c)(6)]
5. In the event the permitted facilities change ownership or the Permittee changes their name, a formal
permit modification request shall be submitted to the Division. This request shall be made on official
Division forms, and shall include appropriate property ownership documentation and other supporting
documentation as necessary. The Permittee of record shall remain fully responsible for maintaining
and operating the facilities permitted herein until a permit is issued to the new owner. [15A NCAC
02T .0104]
6. The Permittee shall retain a set of Division approved plans and specifications for the life of the facilities
permitted herein. [15A NCAC 02T .0108(b)(1)]
7. The Permittee shall maintain this permit until all permitted facilities herein are properly closed or
permitted under another permit issued by the appropriate permitting authority. [15A NCAC 02T
.0105(j)]
8. This permit is subject to revocation or unilateral modification upon 60 days notice from the Division
Director, in whole or part for the requirements listed in 15A NCAC 02T .0110. [15A NCAC 02T .0110]
9. Unless the Division Director grants a variance, expansion of the permitted facilities contained herein
shall not.be granted if the Permittee exemplifies any of the criteria in 15A NCAC 02T .0120(b). [15A
NCAC 02T .0120]
10. The Permittee shall pay the annual fee within 30 days after being billed by the Division. Failure to pay
the annual fee accordingly shall be cause for the Division to revoke this permit. [15A NCAC 02T
.0105(e)(3)]
Permit issued this the 28th day of June 2016
-(Jc
NORTH CAROLINA ENVIRONMENTAL MANAGEMENT COMMISSION
S. Jay Zimmerman, P.G., Director
Division of Water Resources
By Authority of the Environmental Management Commission
Permit Number WQ0004268
WQ0004268 Version 3.0
Shell Version 151201 Page 9 of 9

1
ATTACHMENT A — LIMITATIONS AND MONITORING REQUIREMENTS
PPI 001 — WWTF Effluent
Permit Number: WQ0004268
Version: 3.0
EFFLUENT CHARACTERISTICS
EFFLUENT LIMITS
MONITORING REQUIREMENTS
PCS
Code
Parameter Description
Units of
Measure
Monthly
Average
Monthly
Geometric Mean
Daily Minimum.
Daily Maximum
Measurement
Frequency
Sample
Type
01002
Arsenic, Total (as As)
mg/L
3 x Year I
Grab
00310
BOD, 5-Day (20 °C)
mg/L
. ,
Monthly
Grab
01027
Cadmium, Total (as Cd)
mg/L
' -
3 x Year 1
Grab
00916
Calcium, Total (as Ca)
• mg/L
Monthly
_
Grab
00940
Chloride (as CI)
mg/L
`
,
3 x Year'
Grab
0.1034
Chromium, Total (as Cr)
mg/L
_
3 x Year I
Grab
31616
Coliform, Fecal MF, M-FC Broth, 44.5 °C
#/100 mL
-- .:.
Monthly
Grab
50050
Flow, in Conduit or thru Treatment Plant
' GPD
415,000
,
•
Continuous
Recorder
01051
Lead, Total (as Pb)
mg/L
...` A' `'-' ' ,:,, ,
• -
3 x Year 1
Grab
00927
Magnesium, Total (as Mg)
mg/L
._
„ ___.,„ —I,
, ,
3 x Year'
Grab
71900
Mercury, Total (as Hg)
mg/L
=
._
____ _
, ,
.
3 x Year 1
Grab
01067
Nickel, Total (as Ni)
mg/L
-
3 x Year 1
Grab
00610
Nitrogen, Ammonia Total (as N)
mg/L
_ _
Monthly
Grab
00625
Nitrogen, Kjeldahl, Total (as N)
mg/L
.
,- -
Monthly
Grab
00620
Nitrogen, Nitrate Total (as N)
mg/L
__,.. ,
,
-
Monthly
Grab
00600
Nitrogen, Total (as N)
mg/L
_.,
Monthly
_
Grab
00400
pH
su
Per Event
Grab
00665
Phosphorus, Total (as P)
mg/L
Monthly
' Grab
WQ09C
Plant Available Nitrogen, Concentration
mg/L
'
Monthly
Calculated
00929
Sodium, Total (as Na)
mg/L
,.‘
-z„ ' ,
• .. - ';
• : - — = t , •
Monthly
Grab
00931
Sodium Adsorption Ratio
ratio
'-: ' -...,:, s;.;'. ' :- •-,,
r•'-2' • - '
_
, .,•,'
Monthly
Calculated
70300
Solids, Total Dissolved— 180 °C
mg/L
3 x Year 1
Grab
00530
Solids, Total Suspended
mg/L
.
Monthly
Grab
01092
Zinc, Total (as Zn)
mg/L
L. - --••:.' ''„'''-
'• • '... '.• ''' ''
,
3 x Year 1
Grab
• - • -
WQ0004268 Version 3.0
Attachment A
Page 1 of 1

THIS PAGE BLANK

ATTACHMENT B APPROVED LAND APPLICATION SITES AND LIMITATIONS
Sager Creek Foods, Inc. - Sager Creek Vegetable Company
Permit Number: WQ0004268 Version: 3.0
IRRIGATION AREA INFORMATION
APPLICATION LIMITATIONS
Net
Dominant
Hourly
Yearly
Field
Owner
County
Latitude
Longitude
Acres a
Soil Series
Parameter
-
Rate •
Max
Units
35 go
01284-Non-Discharge Application Rate
0.25
62.36
inches
A (1-9)
Sager Creek Foods, Inc.
Sampson
34° 58' 53" .
-78° 13' 23"
:3
LJ G j.. ja(�
WQ09 - Plant Available Nitrogen
300
lbs/ac
01284 -Non-Discharge Application Rate
0.25
62.36
inches
B (1-4)
Sager Creek Foods, Inc.
Sampson
34° 58'52"
-78°•13' 09"
8.00
.L,)AGG1 4i i
WQ09-Plant Available Nitrogen
300
lbs/ac
/I /3
01284 -Non-Discharge Application Rate
0.25
62.36
inches
C (1-7)
Sager Creek Foods, Inc.
Sampson
34° 58' 55"
-78° 13' 01"
j,6:4e"
(,-)A 0-apt"
WQ09 -Plant Available Nitrogen
300
lbs/ac
D (1-12)Sager
ag Creek Foods, Inc.
Sampson34°
P,i
58' 39"
78° 13' 11"
36.60
"0>z{L� .
01284 - Non -Discharge Application Rate
WQ09 - Plant Available Nitrogen.
0.25 .
42.98
200
inches
lbs/ac
01284 - Non -Discharge Application Rate
0.5 '
63.32
inches
1
Sager Creek Foods, Inc.
Sampson
34° 58' 23"
-78° 14' 35"
1.64
Wagram
WQ09 -Plant Available Nitrogen
270
lbs/ac
2
Sager Creek Foods, Inc.
Sampson
34° 58' 21"
-78° 14' 38"
' 3.23
Wagram
01284 -Non-Discharge Application Rate
WQ09 - Plant Available Nitrogen
0.5
50.64
270
inches
lbs/ac
3
Sager Creek Foods, Inc.
Sampson
34° 58' 15"
-78° 14' 37"
11.62
Wagram
01284-Non-Discharge Application Rate
WQ09 -Plant Available Nitrogen
0.5
5i.05
270
inches
lbs/ac
4
Sager Creek Foods, Inc.
Sampson
34° 58' 11"
-78° 14' 37"
1.89
Noboco
01284 -Non-Discharge Application Rate.
WQ09 -Plant Available Nitrogen
0.5
9.37
299
inches
lbs/ac
5
Sager Creek Foods, Inc.
Sampson
34° 58' 09"
-78° 14' 40"
0.78
Noboco
01284 -Non-Discharge Application Rate
WQ09 - Plant Available Nitrogen
0.5
9.26
299
inches
lbs/ac
6
Sager Creek Foods, Inc.
Sampson
34° 58' 07"
-78° 14' 40"
1.94
Noboco
01284 -Non-Discharge Application Rate
WQ09 -Plant Available Nitrogen
0.5
36.77
299
inches
lbs/ac
7
Sager Creek Foods, Inc.
Sampson
34° 58' 16"
-78° 14' 32"
1.00
Noboco
01284 - Non -Discharge Application Rate
WQ09 -Plant Available Nitrogen
0.5
27.73
299
inches
lbs/ac
8
Sager Creek Foods, Inc.
Sampson
34° 58' 12"
-78° 14' 27"
2.59
Wagram
01284 -Non-Discharge Application Rate
WQ09 - Plant Available Nitrogen
0.5
33.96
270
inches
lbs/ac
9
Sager Creek Foods, Inc.
Sampson
34° 58' 07"
-78° 14' 30"
0.79
Noboco
01284-Non-Discharge Application Rate
WQ09 -Plant Available Nitrogen
0.5
22.48
299
inches
lbs/ac
10
Sager Creek Foods, Inc.
Sampson
34° 58' 20"
-78° 14' 21"
1.33
Wagram
01284 -Non-Discharge Application Rate
WQ09 - Plant Available Nitrogen
0.5
65.62
270
inches
lbs/ac
11
Sager Creek Foods, Inc.
Sampson
34° 58' 16"
-78° 14' 22"
0.67
Wagram
01284 -Non-Discharge Application Rate
WQ09 - Plant Available Nitrogen
0.5
62.13
270
inches
lbs/ac
WQ0004268 Version 3.0
Attachment B •
Page 1 of 2

12
Sager Creek Foods. Inc.
Sampson
34° 58' 11"
-78° 14' 23"
3.74
Wagram
01284 -Non-Discharge Application Rate
0.5
61.13
inches
WQ09 -Plant Available Nitrogen
270
lbs/ac
13
Sager Creek Foods, Inc.
Sampson
34° 58' 07"
-78° 14' 25"
2.13
Wagram
01284 -Non-Discharge Application Rate
0.5
57.54
inches
WQ09 - Plant Available Nitrogen
270
lbs/ac
14
Sager Creek Foods, Inc.
Sampson
34° 58' 17"
-78° 14' 14"
. 7.55
Wagram
01284-Non-Discharge Application Rate
0.5
61.72
inches
WQ09 - Plant Available Nitrogen
270
lbs/ac
15
Sager Creek Foods, Inc.
Sampson
34° 58'09"
-78° 14' 18"
0.97
Noboco
01284 -Non-Discharge Application Rate
0.5
57.3
inches
WQ09 —Plant Available Nitrogen
299
lbs/ac
16
Sager Creek Foods, Inc.
Sampson .
34° 58' 04"
-78° 14'.13".
7.20
Wagram
01284 -Non-Discharge Application Rate
0.5
58.25
inches
WQ09 - Plant Available Nitrogen
270
lbs/ac
17
Sager Creek Foods, Inc.
Sampson
34° 58' 05"
-78° 14' 08"
- 2.27'
. Noboco
01284-Non-Discharge Application Rate
0.5 .
9.91
inches
_
WQ09 - Plant Available Nitrogen
299
lbs/ac
18
Sager Creek Foods, Inc.
Sampson
34° 58' 08"
-78° I3',59"
8.87
Tarboro
01284 - Non -Discharge Application Rate
WQ09 -Plant Available Nitrogen
. 0.5
57.52
200
inches
lbs/ac
18A
-. Sager Creek Foods, Inc.
Sampson -
34° 58' 08"
-78° 14' 06"
_ 6.56
Tarboro
01284 - Non -Discharge Application Rate •
0.5
57.52
inches
WQ09 - Plant Available. Nitrogen
200
lbs/ac
Totals
iraer
C/SO. ? I )
. 50 lbs/ac of Plant Available Nitrogen may be applied to each irrigation field in the winterfor double -cropping.
WQ0004268 Version 3.0 Attachment•B- Page 2 of 2

ATTACHMENT C — GROUNDWATER MONITORING AND LIMITATIONS Permit Number: WQ0004268
Monitoring wells: MW-1, MW-2, MW-3, MW-4, R-1, R-2A, R-3, R-4, R-5A, R-6, R-7, R-8 and R-9
Version: 3.0
GROUNDWATER CHARACTERISTICS
GROUNDWATER STANDARDS
MONITORING REQUIREMENTS
PCS Code
Parameter Description
Daily Maximum
Frequency Measurement
Sample Type
Footnotes
00680
Carbon, Tot Organic ('l'OC)
mg/L
3 x Year
Grab
1, 6
00940
Chloride (as CI)
250
mg/L
3 x Year
Grab
1
31616
Coliform, Fecal MF, M-FC Broth, 44.5 °C
#/100 mL
3 x Year
Grab
1
00610
Nitrogen, Ammonia Total (as N)
1.5
mg/L
3 x Year
Grab
1
00620 .
Nitrogen, Nitrate Total (as N)
10
mg/L
3 x Year
Grab
1
00400
pI-I
6.5-8.5
su
3 x Year
Grab
1, 2
00665
Phosphorus, Total (as P)
mg/L
3 x Year
Grab
1
70300
Solids, Total Dissolved - 180 °C
500
mg/L
3 x Year
Grab
1
00945
Sulfate, Total (as SO4)
250
mg/L
3 x Year
Grab
1
82546
Water Level, Distance from measuring point
feet
3 x Year
Calculated
1, 2, 3
1. 3 x Year monitoring shall be conducted in March, July & November; Annual monitoring shall be conducted every November.
2. The measurement of water levels shall be made prior to purging the wells. The depth to water in each well shall be measured from the surveyed point on the top of the casing. The measurement of
pI-I shall be made after purging and prior to sampling for the remaining parameters.
3. The measuring points (top of well casing) of all monitoring wells shall be surveyed to provide the relative elevation of the measuring point for each monitoring well. The measuring points (top of
casing) of all monitoring wells shall be surveyed relative to a common datum.
4. If TOC concentrations greater than 10 mg/L are detected in any downgradient monitoring well, additional sampling and analysis must be conducted to identity the individual constituents comprising
this TOC concentration. If the TOC concentration as measured in the background monitor well exceeds 10 mg/L, this concentration will be taken to represent the naturally occurring TOC
concentration. Any exceedances of this naturally occurring TOC concentration in the downgradient wells shall be subject to the additional sampling and analysis as described above.
5. Monitoring wells shall be reported consistent with the nomenclature and location information provided in Figure 1 and this attachment.
WQ0004268 Version 3.0
Attachment C Page 1 of 1

0<0rn
of m«
m �m
0
m
0
0
S
l'6100Z'oN oaloid
0
o
�.m
=
co 0
fv
m m
N
sal
G
v
0
a
0
0
3
•0
m
Allons-Cant ing-Ina Permittted Irrigation Zones
Feet
EXPLANATION
Permanent Compliance Well
0 Abandoned Compliance Well
l l Issued Permit Compliance Boundary
Issued Permit Review Boundary
',
Permitted Irrigation Zones
500 250 0 500 1,000 1,500 2.000
MI NM
Basemp: Drawing A30701: Owens Surveying
13
MW-4
!•MW--1
Well No.
MW-1
Status
Active
EasllnL
Northing
Top Casing
Elevation
Land
Surface
Elevation
Old Well
No.
MW-1
NAD83 Ft.
2,231,662
NAD83 Ft.
449,058
NAVD88 Ft.
131.63
NAVD88 Ft.
129.55
MW-2
Active
2,232,183
448411
111.90
110.74
MW-2
MW-3
Active
2,233,475
447,089
91.18
89.53
MW-3
MW-4
Active
2,234,865
449,861
133.75
131.18
MW-4
R-1
Active
2,228,891
445 636
90.47
87.20
CW-7
R-2
Abandoned
2,229,383
445,196
89.09
86.05
CW-6
R-2A
Active
2,229,518
445,191
88.32
85.02
None
R-3
• Active
2,230 053
444,685
89.96
86.96
CW-5
R-4
Active
2,229.492
443,682
92.03
88.52
CW-4
R-5
Abandoned
2,227,878
443,978
97.62
95.42
CW-1E
R-5A
Active
2,227,812
444,037
95.53
93.48
None
R-6
Active
2,226,727
444,187
95.81
93.22
CW-3
R-7
Active
2,226,250
'444,901
107.38
104.36
CS-8
R-8
Active
2,226,467
4461_34
121.68
118.65
CW-1
R-9
Active
2,228,097
445,830
100.00
97.07
None

STATE OF NORTH CAROLINA
PURCHASE AND SALE AGREEMENT
COUNTY OF SAMPSON
THIS PURCHASE AND SALE AGREEMENT (this "Agreement") is entered into as of October it
2017 by and between SAGER CREEK FOODS, INC., a Delaware corporation ("Seller"); and MURPHY-
BROWN LLC, a North Carolina limited liability company d/b/a Smithfield Hog Production Division
("Buyer").
STATEMENT OF AGREEMENT
In consideration of the mutual promises and covenants contained herein, and for other good and
valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Seller agrees to sell to
Buyer and Buyer agrees to purchase from Seller, on the terms and conditions set forth in this Agreement, the
Property (as defined in Paragraph 1 below).
1. Basic Terms. The following terms, whenever used in this Agreement with the first letter of
each word capitalized, shall have only the meanings set forth in this Paragraph 1, unless such meanings are
expressly modified, limited or expanded elsewhere in this Agreement:
(a) Land. Means that certain property owned by Seller located on Rowan Road, in
the Town of Turkey, Sampson County, North Carolina, a description of which is set forth on
Exhibit A attached hereto.
(b) Purchase Price. _Means One and No/100 Dollars ($1.00).
(c) Seller Closing Expenses. Means the cost of preparation of the Deed (as defined
in Paragraph 5(a) below); the payment of any revenue stamp or transfer taxes on the Deed; and
the recording costs of any curative items.
(d) Buyer Closing Expenses. Means all recording costs not included within the
Seller Closing Expenses; the cost of the title examination and the title insurance premium
contemplated by Paragraph 8; the cost of the survey contemplated by Paragraph 9; the costs
associated with a transfer of any Permits (as defined below); the costs of all other due diligence
investigations conducted by Buyer; and the costs of the attorney for the Buyer to conduct the
Closing.
(e) Effective Date. Means the date of complete execution of this Agreement by
Buyer and Seller.
(f) Inspection Period. Means the period beginning on the Effective Date and
ending at 5:00 P.M. on the date one (1) day after the Effective Date.
(g) Outside Closing Date. Means Friday, October 13, 2017.
(h) Property. Means the Land together with (i) all easements and other rights and
privileges appurtenant to the Land, including any utility capacities, development approvals or
assignable permits relating to the Land, (ii) all improvements located on the Land, (iii) Seller's
right, title and interest in any assignable licenses, franchises and permits relating to the Property
including, but not limited to, Seller's Wastewater Irrigation System Permit (as discussed in
Paragraph 25) (the "Permits"), and (iv) any interest of Seller in any alleys, strips or gores of
land adjoining the Land. The legal description of the Property to be used in the Deed (as
defined in Paragraph 5(a) below) shall be taken from Exhibit A. The Property specifically
excludes all vehicles, portable farm equipment, and a portable office.
2. Purchase Price. The Purchase Price shall be paid at Closing by ,wire transfer in immediately
available federal funds.
3. Investigations by Buyer. Seller previously has delivered, or shall deliver to Buyer within three
(3) Business Days after the date of complete execution of this Agreement, true and correct copies of the
following items (the "Due Diligence Items") in Seller's possession or control:
9723054v8 25358.00012

(a) A copy of Seller's existing title insurance policy for the Property (or for a larger
parcel that includes the Property).
(b) A copy of that certain ALTA/ACSM Land Title Survey entitled "Allen's
Canning Project" dated October 10, 2010, prepared by Cain, PLS.
(c) Phase I Environmental Site Assessment and Limited Material Compliance
Review prepared by TRC dated April 2015.
Prior to the Closing Date, Buyer and its agents and representatives shall have the right to go on the
Property for the purpose of conducting soil tests, surveys, environmental site assessments and other
investigations, and undertaking such other activities as are appropriate to planning its development of the
Property. Notwithstanding the foregoing, Buyer shall be required to obtain Seller's written consent prior to
undertaking any Phase II environmental site assessment or other intrusive testing, which consent may be
withheld in Seller's sole discretion. Buyer shall indemnify, defend and hold Seller harmless from and against
any claims, damages or liability (including reasonable attorneys' fees), and shall repair any damage to the
Property, resulting from or relating to Buyer's exercise of its right of entry. This indemnity shall survive the
termination of this Agreement. Further, Buyer shall carry commercial general liability insurance with limits of
liability of not less than $1,000,000.00 per occurrence and $2,000,000.00 general aggregate covering all
activities of Buyer and its agents, contractors and representatives while exercising the right of entry upon the
Property, and Seller shall be named as an additional insured on such commercial general liability insurance
policy. Buyer shall deliver a certificate of insurance to Seller evidencing such coverage prior to the earlier of
(i) the date Buyer, its agents or contractors first go onto the Land or (ii) three (3) Business Days after the
Effective Date.
4. Closing. Buyer and Seller agree to cause the closing of this transaction (the "Closing") to
occur by mail, or at such location as the parties may mutually agree, on a date (the "Closing Date") determined
as follows:
(a) During the Inspection Period, Buyer shall have the right to investigate the
Property and otherwise determine the feasibility of the Property for Buyer's use. If Buyer
determines in its sole discretion (for any reason or no reason) that the Property is not suitable,
Buyer may terminate this Agreement by delivery of written notice to Seller during the
Inspection Period and thereafter this Agreement shall be null and void, except for (i) the
indemnification obligations of Buyer and Seller under Paragraph 14, (ii) the indemnification
and other obligations of Buyer under Paragraph 3, (iii) the terms and covenants of Paragraph 10,
and (iv) the release and indemnification obligations of Buyer under Paragraphs 23 and 24
(collectively, the "Surviving Obligations").
(b) Provided this Agreement is not terminated as provided above, the Closing shall
occur on a date selected by the parties on or prior to the Outside Closing Date. If the parties do
not agree on an earlier date, the Closing shall occur on the Outside Closing Date.
5. Closing Documentation. Seller shall deliver possession of the Property to Buyer on the
Closing Date. At Closing, Seller shall execute and deliver to the attorney for the Buyer the following:
(a) A special warranty deed (the "Deed") conveying to Buyer title to the Property
free and clear of all liens, charges and encumbrances, except the following items (collectively,
the "Permitted Encumbrances"): (i) ad valorem real estate taxes for the year of Closing and
subsequent years, a lien but not yet due and payable; (ii) all restrictions, covenants, conditions,
easements and other matters of record affecting the Property; (iii) all applicable zoning rules
and regulations; and (iv) such state of facts as would be disclosed by an accurate survey and
inspection of the Property conveyed pursuant to the Deed. Notwithstanding the foregoing,
Buyer acknowledges that a portion of the Property is located within the right-of-way of Rowan
Road, Beamon Woods Road and the Seaboard Coastline Railroad (the "ROW Property").
Seller shall make no warranties of title with respect to the ROW Property in the Deed, but Seller
will quitclaim any interest it may have in the ROW Property in the Deed. The Deed shall also
include the language required by Paragraphs 24 and 24 of this Agreement.
2
9723054v8 25358.00012

(b) An owner's affidavit in form reasonably acceptable to Buyer and Buyer's title
insurer affirming that there are no outstanding possessory rights, liens or rights to claim liens
against the Property, and any other affidavits reasonably required by Buyer's title insurer.
(c) Documentation as may be reasonably required by Buyer's title insurer to
confirm Seller's authority to undertake and consummate the Closing.
(d) An affidavit in a form complying with law that Seller is not a "foreign person"
within the meaning of the Foreign Investment in Real Property Tax Act, and information
necessary to complete an IRS Form 1099.
(e) Documentation as may be reasonably required by Buyer to transfer or assign
the Permits, if any, to Buyer.
(f) A closing statement reflecting the Purchase Price and all adjustments,
prorations and credits thereto, and such disbursements as the parties wish to reflect thereon in
connection with the transaction contemplated hereby (the "Closing Statement").
At Closing, Buyer shall execute and deliver to the attorney for the Buyer the following:
(g)
The Closing Statement.
(h) Documentation as may be reasonably required by Seller to transfer or assign the
Permits, to Buyer.
6. Closing Expenses. At Closing, Seller shall be responsible for payment of the Seller Closing
Expenses, and Buyer shall be responsible for payment of the Buyer Closing Expenses. The parties will each be
responsible for all of their other closing costs, including their respective attorneys' fees.
7. Real Estate Taxes. All real estate taxes and assessments on the Property for the year in which
the Closing occurs will be prorated on a calendar year basis to the Closing Date. If the actual amount of those
taxes and assessments is not known on the Closing Date, they shall be prorated on the basis of the amount of
taxes and assessments applicable to the Property for the previous tax year, and shallbe adjusted between the
parties when the actual amount of taxes and assessments payable in the year of Closing is known to Buyer and
Seller if the actual amount of taxes for the year of Closing differs by more than $250.00 from the tax amount
used in the proration of taxes at Closing. Buyer shall pay any rollback taxes or use taxes, if any, which become
due and payable as a result of the transfer.
If any portion of the Property is not a separate tax parcel at Closing and all taxes for the larger tax parcel
of which such Property is a part is not paid in full at Closing, Buyer and Seller agree that: (i) the proration of
taxes at Closing shall exclude the amount of any taxes assessed on the value of any improvements not located on
the Property; and (ii) the parties agree to re -prorate the taxes paid at Closing if the actual amount of taxes for the
year of Closing differs by more than $250.00 from the tax amount used in the proration of taxes at Closing.
The provisions of this Paragraph 7 shall survive Closing for a period of eighteen (18) months.
8. Title Examination. Buyer shall have the right to examine the title to the Property. If Buyer
does not approve the title to the Property to be received by Buyer, Buyer shall advise Seller in writing prior to
the expiration of the Inspection Period (the "Title Examination Period") of its objections to title. The
objections to title may be based on a survey of the Property obtained by Buyer under Paragraph 9. If Buyer
timely objects to any title exception or survey matter (the "Title Objections"), Seller may, but will not be
obligated to, cure such Title Objections and shall notify Buyer in writing within five (5) days after the receipt of
the Title Objections of the status of such cure (said notice hereinafter called "Seller's Title Notice"). If Seller
notifies Buyer that Seller is unable or unwilling to cure any Title Objection, Buyer shall be deemed to have
waived such Title Objections (and any title matters of record as of the Effective Date) unless Buyer delivers to
Seller written notice terminating this Agreement on the later of (i) five (5) days following receipt of Seller's
Title Notice or (ii) the expiration of the Inspection Period. If Seller elects to cure certain Title Objections, Seller
shall use good faith efforts to cure such Title Objections on or before the Outside Closing Date, but Seller's
failure to cure any such Title Objections shall not be deemed a default under this Agreement. Seller covenants
to cure, at or prior to Closing, all objections that may be satisfied by the payment of a fixed sum of money
3
9723054v8 25358.00012

relating to any deeds of trust, mortgages or statutory liens, and Seller's failure to cure such objections shall be a
default under this Agreement.
If Buyer obtains a title commitment during the Title Examination Period and any additional title matters
arise after the effective date of such title commitment, Buyer shall have three (3) Business Days after receipt of
the same in which to object to such matter or be deemed to have waived any rights to object. If Buyer objects to
any new matter, the parties shall have the same rights with respect to such subsequent objections that it had with
respect to matters reflected on the title commitment.
9. Survey. Buyer may cause a licensed surveyor or engineer to prepare an accurate survey of the
Property. If obtained, the survey shall be certified to Buyer and to its title insurer, in a manner sufficient for the
title insurer to issue a title policy with extended coverage and without exception for matters of survey. •
10. Property Purchased "AS IS". THE PROPERTY IS BEING PURCHASED AND SOLD "AS
IS" AND "WITH ALL FAULTS". BUYER SPECIFICALLY ACKNOWLEDGES AND CONFIRMS THAT
SELLER HAS NOT MADE AND SELLER SPECIFICALLY DISCLAIMS ANY REPRESENTATIONS,
WARRANTIES, PROMISES, COVENANTS, AGREEMENTS OR GUARANTIES OF ANY KIND OR
_CHARACTER WHATSOEVER, WHETHER EXPRESS OR IMPLIED, ORAL OR WRITTEN AS TO,
CONCERNING, OR WITH RESPECT TO THE PROPERTY EXCEPT AS SET FORTH IN THE DEED, OR
IN PARAGRAPH 11. THE PURCHASE PRICE AND THE TERMS AND CONDITIONS SET FORTH
HEREIN ARE THE RESULT OF ARM'S-LENGTH BARGAINING BETWEEN PARTIES FAMILIAR
WITH TRANSACTIONS OF THIS KIND AND NATURE, AND THE AGREED UPON PURCHASE PRICE,
AND THE TERMS AND CONDITIONS SET FORTH HEREIN REFLECT THE FACT THAT BUYER
SHALL HAVE THE BENEFIT OF, AND IS RELYING UPON, NO STATEMENTS, REPRESENTATIONS
OR WARRANTIES WHATSOEVER, MADE BY OR ENFORCEABLE AGAINST SELLER (OTHER THAN
THE EXPRESS REPRESENTATIONS AND WARRANTIES OF SELLER SET FORTH IN PARAGRAPH 11
OR IN THE DEED) RELATING TO THE. CONDITION, OPERATIONS, DIMENSIONS, DESCRIPTIONS,
SOIL CONDITION, SUITABILITY, COMPLIANCE OR LACK OF COMPLIANCE WITH ANY STATE,
FEDERAL, COUNTY OR LOCAL LAW, ORDINANCE, ORDER, PERMIT OR REGULATION,
FINANCIAL PROJECTIONS, OR ANY OTHER ATTRIBUTE OR MA ITER OF OR RELATING TO THE
PROPERTY, INCLUDING, WITHOUT LIMITATION: (1) THE STRUCTURAL INTEGRITY OF ANY
IMPROVEMENTS; (II) THE CONFORMITY OF ANY IMPROVEMENTS TO ANY PLANS OR
SPECIFICATIONS FOR THE PROPERTY, INCLUDING ANY PLANS AND SPECIFICATIONS THAT
MAY HAVE BEEN OR MAY BE PROVIDED TO BUYER; (III) THE CONFORMITY OF THE PROPERTY
TO PAST, CURRENT OR FUTURE APPLICABLE ZONING, LAND USE OR BUILDING CODE
REQUIREMENTS; (IV) THE EXISTENCE OF SOIL INSTABILITY, SOIL ADDITIONS OR CONDITIONS
OF SOIL FELL; (V) THE SUFFICIENCY OF ANY DRAINAGE; (VT) WHETHER THE PROPERTY IS
LOCATED WHOLLY OR PARTIALLY IN A FLOOD PLAIN OR A FLOOD HAZARD BOUNDARY OR
SIMILAR AREA; (VII) THE EXISTENCE OR NON-EXISTENCE OF TOXIC OR HAZARDOUS WASTES
OR MATERIALS OR FRIABLE ASBESTOS OR CONSTRUCTION MATERIALS CONTAINING
ASBESTOS IN, ON OR ABOUT THE PROPERTY; (VIII) ANY OTHER MATTER AFFECTING THE
STABILITY OR INTEGRITY OF THE PROPERTY, OR ANY BUILDINGS OR IMPROVEMENTS
SITUATED ON THE PROPERTY; (IX) THE FITNESS OR SUITABILITY OF THE PROPERTY FOR
BUYER'S INTENDED USE; (X) THE POTENTIAL FURTHER DEVELOPMENT OF THE PROPERTY (XI)
THE EXISTENCE OF VESTED RIGHTS, LAND USE, DENSITY, TRANSPORTATION MITIGATION
CREDITS, UNIT OR DENSITY TRANSFERABILITY RIGHTS, ZONING, BUILDING OR
DEVELOPMENT ENTITLEMENTS AFFECTING THE PROPERTY; (XII) THE VALUE OF THE
PROPERTY; (XIII) THE MARKETABILITY, MERCHANTABILITY, HABITABILITY, PROFITABILITY,
SUITABILITY OR FITNESS FOR A PARTICULAR PURPOSE OF THE PROPERTY; (XIV) THE INCOME
TO BE DERIVED FROM THE PROPERTY AND THE EXPENSES TO BE INCURRED INCIDENT
THERETO; AND (XV) THE AVAILABILITY OR ADEQUACY OF ANY UTILITY SERVICE TO THE
PROPERTY. BUYER REPRESENTS, WARRANTS AND COVENANTS TO SELLER THAT, EXCEPT
FOR SELLER'S EXPRESS REPRESENTATIONS AND WARRANTIES SPECIFIED IN PARAGRAPH 11
AND IN THE DEED, BUYER IS RELYING SOLELY UPON BUYER'S OWN INVESTIGATION OF THE
PROPERTY. IF SELLER OBTAINS OR HAS OBTAINED THE SERVICES, OPINIONS OR WORK
PRODUCT OF SURVEYORS, ARCHITECTS, ENGINEERS, CONSULTANTS, ACCOUNTS,
ATTORNEYS, EXPERTS, GOVERNMENTAL AUTHORITIES OR ANY OTHER PERSON OR ENTITY
4
9723054v8 25358.00012

WITH RESPECT TO THE PROPERTY, BUYER AND SELLER AGREE THAT SELLER SHALL DO SO
ONLY FOR THE CONVENIENCE OF BOTH PARTIES, AND THE RELIANCE BY BUYER UPON ANY
SUCH SERVICES, OPINIONS OR WORK PRODUCT SHALL NOT CREATE OR GIVE RISE TO ANY
LIABILITY OF SELLER. THE TERMS AND COVENANTS OF THIS PARAGRAPH 10 SHALL SURVIVE
THE CLOSING AND THE DELIVERY OF THE DEED FOR THE PROPERTY OR ANY TERMINATION
OF THIS CONTRACT. NO REPRESENTATION, WARRANTY, COVENANT, AGREEMENT OR
CONDITION NOT EXPRESSED IN THIS AGREEMENT SHALL BE BINDING UPON THE PARTIES
HERETO OR SHALL AFFECT OR BE EFFECTIVE TO INTERPRET, CHANGE OR RESTRICT THE
PROVISIONS OF THIS AGREEMENT.
11. Representation and Warranties by Seller. Seller represents and warrants to Buyer that:
(a) Seller owns fee simple title to the Property.
(b) Seller is a corporation duly formed and validly existing under the laws of the
State of Delaware. This Agreement and the documents to be delivered by Seller at Closing
have been or will be duly authorized by all necessary action on the part of Seller.
(c) The execution and performance of this Agreement by Seller will not conflict
with any provision of law applicable to Seller, nor will it result in the breach of any provision
of, or constitute a default under, any agreement or instrument to which Seller is a party or by
which the Property is bound.
(d) This Agreement and the documents to be delivered by Seller at Closing have
been or will be duly executed and delivered by Seller.
(e) As of the Effective Date, the Property is not subject to any leases or other
occupancy agreements.
(f) Seller agrees to not enter into any material agreements or contracts relating to
the Property prior to the Closing Date_ that will survive Closing and be binding on Buyer
without Buyer's prior written consent.
Seller agrees not to cause or permit any action to be taken which would cause any of Seller's
representations or warranties to be materially untrue as of the Closing. Seller agrees to immediately notify
Buyer in writing of any event or condition which occurs prior to Closing that causes a change in the facts related
to, or the truth of, any of Seller's representations or warranties.
Seller agrees that the truthfulness of each of the foregoing matters is a condition precedent to Buyer's
performance under this Agreement, and all of the foregoing matters shall be deemed repeated at Closing. Any
breach by Seller of any representation or warranty made in this Paragraph 11 discovered prior to Closing shall
be a default under this Agreement, entitling Buyer to pursue the remedies set forth in Paragraph 13.
If Buyer discovers after Closing that any representation and warranty made by Seller that is of a
material nature is not true in any material respect, Buyer shall have the right to pursue any available remedy
against Seller, including the recovery of damages. The preceding sentence shall survive the Closing for a period
of six (6) months from the Closing Date, at which point Buyer shall have no further remedies unless suit has
been filed in a court of competent jurisdiction prior to the expiration of that period.
12. Condemnation. If any taking pursuant to the power of eminent domain is threatened or occurs
before the Closing Date as to all or any portion of the Property that Buyer deems material, including any access
or other easements benefiting the Property, or a sale occurs in lieu thereof, Buyer may elect either to:
(i) terminate this Agreement by delivery of written notice of termination to Seller within ten (10) days after
written notice from Seller of the condemnation or threat thereof; or (ii) proceed to closing, in which event all
proceeds, awards and other payments arising from any such taking or sale of the Property shall be assigned to
and paid to Buyer, without any adjustment of the Purchase Price.
13. Defaults and Liquidated Damages. If Buyer fails to comply with or perform in any material
respect any of the conditions to be complied with or any of the covenants, agreements or obligations to be
performed by Buyer under the terms and provisions of this Agreement, and Buyer fails to cure its breach or non-
performance hereunder within ten (10) days of Buyer's receipt of a reasonably detailed notice specifying such
5
9723054v8 25358.00012

breach or non-performance, the sole remedy of Seller shall be to terminate this Agreement by delivery of written
notice to Buyer. Upon any such termination, neither party shall have any further rights or obligations regarding
this Agreement other than the Surviving Obligations.
If Seller breaches in any material respect any representation or warranty contained in this Agreement or
fails to comply with or perform in any material respect any of the conditions to be complied with or any of the
covenants, agreements or obligations to be performed by Seller under the terms and provisions of this
Agreement, and Seller fails to cure any such breach or non-performance hereunder within ten (10) days of
Seller's receipt of a reasonably detailed notice specifying such breach or non-performance, Buyer may, as
Buyer's exclusive remedies against Seller for Seller's default, either: (i) obtain specific performance of the
obligations of Seller under this Agreement, or (ii) terminate this Agreement.
14. Commissions. Buyer and Seller represent and warrant to each other that no brokers' or real
estate commissions will be due as a result of the sale of the Property from their respective actions. Seller agrees
to indemnify, defend and hold harmless Buyer from and against any cost and expense (including reasonable
attorneys' fees) incurred by Buyer as a result of the untruth of the foregoing representation by Seller. Buyer
agrees to indemnify, defend and hold harmless Seller from and against any cost and expense (including
reasonable attorneys' fees) incurred by Seller as a result of the untruth of the foregoing representation by Buyer.
The terms and covenants of this Paragraph 14 shall survive the Closing.
15. Notices. Any notice, consent or other communication permitted or required by this Agreement
shall be in writing, and shall be given to each party, at the address set forth below, in the following manner:
(i) personal delivery, (ii) reputable overnight delivery service with proof of delivery, or (iii) electronic mail,
provided that a verification copy is sent on the same day by any of the methods set forth in clauses (i) or (ii)
above. Each such notice shall be deemed to have been given upon receipt or refusal to accept delivery, or, in the
case of electronic mail transmission, on the date of delivery, if delivered on a Business Day during normal
business hours and, if otherwise, on the next Business Day, provided that documentation of completed
transmission is retained. Seller and Buyer and their respective counsel shall have the right to change their
respective address and/or e-mail address by providing written notice of such change in address and/or e-mail
address as required under this Paragraph 15. Unless and until changed as provided above, the addresses for
notices given pursuant to this Agreement shall be as follows:
if to
Seller:
Sager Creek Foods, Inc.
205 North Wiget Lane
Walnut Creek, CA 94598
Phone: [phone]
Email: [e-mail]
Attn: Galen Sorrells, General Counsel
with
copy to: Robinson, Bradshaw & Hinson, P.A.
101 North Tryon Street, Suite 1900
Charlotte, North Carolina 28246
Phone: [phone]•
Email: [e-mail]
Attn: Will Packard, Esq.
if to
Buyer:
Murphy -Brown LLC
2822 Highway 24 West
Warsaw, North Carolina 28398
Phone: [phone]
Email: [e-mail]
Attn: Kraig Westerbeek
with
copy to: McGuireWoods LLP
300 N. Third Street, Suite 320
Wilmington, North Carolina 28401
Phone: [phone]
Email: [e-mail]
Attn: David E. Huffine, Esq.
16. Time of the Essence. Time shall be of the essence in the performance of all obligations under
this Agreement. If the time period by which any right, option or election provided under this Agreement must
be exercised, or by which any act required under this Agreement must be performed, or by which Closing must
be held, expires on a day other than a Business Day, then such time period shall be automatically extended to the
next Business Day. For purposes of this Agreement, the term "Business Day" means any day other than
Saturday, Sunday, any federal legal holiday, or any day on which banking institutions in Charlotte, North
Carolina or the county in which the Property is located, are obligated or authorized by law to close for the
normal conduct of banking business.
6
9723054v8 25358.00012

Buyer hereby acknowledges receipt of the above Seller Environmental Reports. Buyei further
acknowledges that Seller has permitted Buyer to independently collect and conduct sampling/ testing on
residuals stored in the Property lagoons. This independent testing was Buyer's work product and was not
provided to Seller.
Seller warrants and represents to Buyer that it has no actual knowledge of environmental conditions
related to the Property which are not addressed in the above Seller Environmental Reports. As partial
consideration for the purchase of the Property, Buyer has agreed to undertake remediation of certain matters,
specifically set forth in the above Seller Environmental Reports, which remediation is described as follows
(collectively, the "Remediation"):
(a) Buyer will assume full responsibility for all monitoring and reporting
requirements specified in the Property's Wastewater Irrigation System Permit
WQ0004268 at the time Property ownership changes.
(b) Buyer will work with Seller to file a formal permit modification with the
State of North Carolina Division of Water Resources to transfer Wastewater Irrigation
System Permit WQ0004268 to Buyer at the time Property ownership changes.
(c) Buyer will obtain all necessary permits required to properly manage
and/or treat the residual solids from two former process wastewater treatment lagoons
(settling and storage lagoon) located on the Property and identified on Exhibit B
attached hereto.
(d) Buyer will manage and/or treat the residual solids in Property lagoons as
required by the State of North Carolina, which may include but not be limited to
removal of the residuals from the lagoons and land application of the residuals on the
Property and/or in -place management of the lagoon residuals.
(e) Buyer will conduct testing of the "top water" as is required by the State
of North Carolina.
(f) Buyer will manage rainwater excess as necessary on an on -going basis.
(g) After proper management of the Property lagoon residual solids, Buyer
will move to have the State of North Carolina approve closure of the lagoons as process
wastewater lagoons.
Buyer agrees that it will conduct the above Remediation in accordance with all applicable governmental laws,
regulations and ordinances. Buyer, for itself, its successors and assigns, agrees to indemnify and hold Seller
harmless from and defend Seller against all any and all claims, liabilities, damages, costs and expenses
(including reasonable attorneys' fees and applicable costs and expenses) arising in connection with the
Remediation and for losses incurred by Seller resulting from the actions of Buyer, its employees, contractors or
agents occurring after Closing and related to the Property. The terms and covenants of this Paragraph 25 shall
survive the Closing.
[SIGNATURES ON FOLLOWING PAGE]
8
9723054v8 25358.00012

17. Assignment. Buyer shall have no right to assign this Agreement without the prior written
consent of Seller; provided, however, that such consent shall not be required for an assigiunent to another
corporation, partnership or limited liability company controlled by Buyer or its principals. No such assignment
shall relieve Buyer from liability under this Agreement.
18. Method of Execution; Counterparts. Seller and Buyer may deliver executed signature pages
to this Agreement by facsimile transmission or PDF via email to the other party, which facsimile or PDF copy
shall be deemed to be an original executed signature page. This Agreement may be executed in any number of
counterparts, each of which shall be deemed an original and all of which counterparts together shall constitute
one agreement with the same effect as if the parties had signed the same signature page.
_ 19. Entire Agreement, Modification. This Agreement constitutes the entire and complete
agreement between the parties with respect to the Property and supersedes any prior oral or written agreements
between the parties. No modification of this Agreement, and no waiver of any of its terms or conditions, shall
be effective unless made in writing and duly executed by both parties.
20. Binding Effect; Survival. . All covenants, agreements, warranties and provisions of this
Agreement shall be binding upon and inure to the benefit of the parties and their respective heirs, executors,
administrators, personal representatives, successors and assigns. None of the terms, covenants, conditions,
representations, warranties and agreements of this Agreement shall survive the Closing Date, except as
otherwise expressly provided to the contrary in this Agreement.
21. Controlling Law. This Agreement has been made and entered into under the laws of the state
in which the Property is located, and those laws shall control the interpretation of this Agreement.
22. Attorneys' Fees. If any party hereto institutes an action or proceeding relating to or arising out
of this Agreement, or the transaction contemplated hereby, or in the event any party is in default of its
obligations pursuant hereto and thereto, whether or not suit is filed or prosecuted to final judgment, the
prevailing party shall be entitled to reasonable attorneys' fees and to all court costs incurred, in addition to any
other damages or relief awarded.
23. Confidentiality/Exclusive Dealing. So long as this Agreement remains in effect, Seller shall
not (i) seek or entertain any other offers for the sale of the Property or any portion thereof, or (ii) disclose the
existence or terms of this Agreement to any person without Buyer's consent other than to Seller's
representatives who need terms of this Agreement to evaluate the transaction and who agree to be bound by the
restrictions contained herein or except as such disclosure may be required by applicable law.
24. Release from Liability. Buyer, for itself, its successors and assigns, agrees to release Seller
from any and all claims, liabilities, damages, costs and expenses (including reasonable attorneys' fees and
applicable costs and expenses) arising in connection with any condition, act or omission related to the Property.
The terms and covenants of this Paragraph 24 shall survive the Closing.
25. Limited Indemnification by Buyer. Seller and third -party consultants have prepared the
following technical and monitoring reports for the Property during the period of 2015 — 2017, which reports
detail the environmental conditions of the Property during such period (the "Seller Environmental Reports"):
• Phase I Environmental Site Assessment and Limited Material Compliance Review dated April,
2015, prepared by TRC.
• Lagoon Cleaning Biosolids Quality dated May 16, 2016, prepared by MacConnell &
Associates.
• Soil Analysis and Agronomic Evaluation dated February 3, 2017, prepared by Shaffer Soil
Service, Inc.
• Lagoon process waters and ground waters at the Property have been subject to routine testing
and monitoring by Seller since March, 2015, pursuant to the Property's Wastewater Irrigation
System Permit WQ0004268. Seller has routinely submitted this monitoring data to the North
Carolina Division of Water Resources and said discharge monitoring data is a matter offpublic
record.
7
9723054v8 25358.00012

IN WITNESS WHEREOF, Seller and Buyer have caused this Agreement to be executed as of the
day and year first above written.
SELLER:
Date executed: SAGER CREEK FOODS, INC.
r
//D ,2017
By:
Name: k
Title: Chi@.FE.tesekfriV( O. C-1
BUYER:
Date executed: MURPHY-BROWN LLC, d/b/a Smithfield Hog
Production Division
, 2017
9723054v8 25358.00012
By:
Name:
Title:

IN WITNESS WHEREOF, Seller and Buyer have caused this Agreement to be executed as of the
day and year first above written.
SELLER:
Date executed: SAGER CREEK FOODS, INC.
,2017
By:
Name:
Title:
BUYER:
Date executed: MURPHY-BROWN LLC, d/b/a Smithfield . Hog
Production Division
CLU1 LQ , , 2017
9723054v8 25358.00012
By:
Nam
Title:

EXIIIBIT A -
LEGAL DESCRIPTION r
•
Lying and tieing situate, in Sampson County, North Carolina, and more particularly described as
follows;
TRACT ONEt
BEGINNING at a point in the centerline of State Secondary Road No. 1924 (Rowan Road) at a.
point where the centerline of State Secondary Road No. 1933 (Beaman Woods Road) intersects
and runs thence South 05 degrees East 173.21 poles to a stake on the run of Rawun Creek;
thence down the run of Rowan Creek as it meanders the following courses and distances: South
81 degrees 30 minutes Est 31.60 poles. South 74 degrees 45 minutes East 2030 poles; South'89
degrees 35 minutes East 5.12 poles; South 44 degrees 15 minutes East 6.78 poles; South 63
degrees East 9.21 poles; North 30 degrees 30 minutes East 3.45 poles; South 55 degrees East
18.30 poles. South 70 degrees 10 minutes East 6,72 poles: North 80 degrees East 14.30 poles;
North 80 degrees 45 minutes East 15.45 poles; South 10 degrees 30 minutes East 4.36 poles;
South 81 degrees 30 minutes East 9.15 poles. South 76 degrees 50 minutes East 10.54 poles;
South 75 degrees 30 minutes East 14.20 poles; North 56 degrees 15 minutes East 9.15 poles;
South 63 degrees 30 minutes East 15.81 poles, South 78 degrees 30 minutes East 11.45 poles;
South 82 degrees 15 minutes East 17.87 poles, North 81 degrees 40 minutes East 1939 poles;
North 67 degrees East 8.60 poles; South 70 degrees 30minutes East 6.60 poles; North 55
degrees 30 minutes East 10,48 poles; North 42 degrees_]5 minutes East 7.21 poles; South 83
degrees 20 minutes East 15,88 poles; North 78 degrees East 13.27 poles; South 64 degrees 15
minutes East 12.00 poles; South 04 degrees'15 minutes West 5.39 poles; South 30 degrees 30
minutes Bast 14.88 poles; South 58 degrees East 9.51 poles; South 72 degrees East 7.50 poles.
South 85 degrees 10 minutes East 9.00 poles; South 47 degrees 30 minutes East 6,60 poles;
South 77 degrees 15 Minutes East 18.72 poles; South 41 degrees East 23.33 poles; and South 38
degrees East 12.78 poles to the run of Six Runs Creek: thence up the run of Six Runs Creek as it
meanders the following courses end distances: North 30 degrees 30 minutes East 6.00 poles;
North 07 degrees 45 minutes West 11.00 poles; North 47 degrees 40 minutes West 13.88 poles.
North 21 degrees 20 minutes West 11.60 poles; South 87 degrees 15 minutes West 15.69 poles;
North 02 degrees 45 minutes East 15.27poles; South 75 degrees 15 minutes West 12.00 poles,
North 78 degrees 15 minutes West 17.33 poles; North 56 degrees 45 minutes West 9.45 poles;
North 44 degrees 45 minutes West 6.78 poles; North 02 degrees East 10.18 poles; North 36
degrees East 7.66 poles; North 52 degrees 30 minutes East 9.00 poles; North 39 degrees 40
minutes East 1012 poles; North 17 degrees West 9.10 poles; North 22 degrees 50 minutes West
12.00 poles; North 27 degrees 30 minutes East 16,54 poles; North 37 degrees West 6.42 poles; -
North 49 degrees 45 minutes West 6.00 poles; North 51 degrees 30 minutes West 10.00 poles;
North 84 degrees 30 minutes West 6.00 poles; North 36 degrees West 12.78 poles: North 84
degrees 15 minutes West 7.00 poles; North 40 degrees East 1363 poles; North 11 degrees 15
Exhibit A
9723054v8 25358.00012

minutes East 11 00 poles; North 52 degrees 30 minutes East 11.81 poles; North 39 degrees 30
minutes East 10.48 poles; and North 18 degrees East 11,45 poles to a Cypress on the run of Six
Runs Creek; thence leaving said run South 80 degrees West 57.00 poles to a stake; thence North
10 degrees East 52.00 poles to a Make 'on the old road; thence with the old road as It meanders
partly with State Secondary Road No. 1924 (Rowan Road), North 79 degrees West 54.00 poles,
South 80 degrees West 70.00 poles, North 65 degrees West 50.00 poles, and North 85 degrees
West 116.00 poles to the beginning, containing 409.02 acres, more or less, and being the same
lands conveyed to J. S. Bakes, Sr and wife, Gentile K. Eakes, by deed from the Federal Land
Bank of Columbia, dated March 11,1936, and recorded In Book 482 atPage 232, of the
Sampson County Registry. J. S. Eakcs, Sr died testate on October 10,1973, and devised the
subject lands to Genevieve B. Swart, Eugene K Eakes and J. S. Eakes, Jr, by his Last Will And
Testament filed in Estate FileNo 73-E-206 in the Office of the Clerk of Superior Court,
Sampson County, North Carolina Genevieve E Stuart conveyed her one-third (1/3) undivided
interest in the subject lands by deed to Eugene K. Eakes and J. S Eakes. Jr., dated April r, 1975, •
recorded in Book 385, at Page 309, of the Sampson County Registry.
It is understood and agreed by and between the parties hereto that no tobacco poundage and/or
crop allotments assigned to the subject lands by the Sampson County Consolidated Farm Service
Agency shall pass with this conveyance.
TRACT TWO:
BEING ALL OF TRACT THREE (3), containing 3.69 acres. (including state road right of way),
as shown on map by David G. Heater, PA, which map is entitled "Survey for Mary Elizabeth C.
Thompson", is dated October 26, 2005, and is recorded in Map Book 55, at Page 35, in the
Sampson County Registry, to which rap reference is made for a more particular description.
All those certain tractsor parcels of Land lying and being in Turkey Township. Sampson
County, North. Carolina, and being more particulerly.desoribed as follows:
TRACT THREE:
Second Tract:
BEING ALL OF TRACT No. 2 (containing 210.70 acres, more or Tess), known as the "PLANT
SITE", said tract of land being more particularly described according to a plat of survey prepared
by Salmon and Associates, P.A., Registered Land Surveyors, dated December 3,1984, which
plat, recorded in Map Book 20, at Page 97 of the Sampson County Registry is by reference
incorporated herein as part of this description.
SAVING AND EXCEPTING,1-IOWEVER, from the bounds of the lands above described the
right-of-way of Seaboard Coast Line Railroad forty (40) feet wide And centered on a line
beginning at a nail No. 18 in the centerline of a trestle above the centerline of the Run of Six
Runs Creek, and runs thence across Tract No. 2 ("PLANT SITE") of the subject lands to a PIC
Nail No. 1 in the centerline of (he Seaboard Coast Line Railroad• right-of-way at the intersection
of the centerline of N.C. Highway No. 24, known as the "SEABOARD COAST LINE
RAILROAD', being more particularly described on the plat of survey hereinabove referred to.
Exhibit A
9723054v8 25358.00012

ALSO, LESS AND EXCEPT FROM TRACT THREE THAT PARCEL OF LAND described
according to Uplat of survey prepared by Jimmy F. Cain, PLS Land Surveyors, dated April 27, 2017,
which plat, recorded in Map Book 95, at Page 86 of the Sampson County Registry, is by reference
incorporated as part of this description.
TRACT FIVE..
That tract of land Containing 111.07 acres, more or less (exc(uding the cemetery) In Turkey
Township, Sampson County, North Carolina, located on State Road 1924, and being a part of the
original tract from which this tract and the Fourth Tract were carved; bounded now or formerly
as follows: North by the lands of Joan of Arc Company; Fast by State Road 1924; South by the `-
run of Mill Branch; and West by the lands of Joan of Are Company, more particularly described
as follows:
BEGINNING at a PK Nail In the center of the concrete bridge over the run of Mill Branch, at a
point where the center line of State Road 1924 crosses said branch, and runs thence down the run
ofMill Branch as it meanders as follows: South 79 degrees 50 minutes 35 seconds West 148.38
feet; North 89 degrees 32 minutes 02 seconds West 112.74 feet; South 24 degrees 21 minutes 16
seconds West 19.66 feet; South 73 degrees 11 minutes 11 seconds West 241.33 feet; South 87
degrees 02 minutes 57 seconds West 85.82 feet; South 62 degrees 59 minutes 11 seconds West
127.73 feet; South 84 degrees 14 minutes 34 seconds West 174.99 feet; South 86 degrees 57 •
minutes 00 seconds West 162.12 feet; North 41 degrees 50 minutes 40 seconds West 92.51 feet;
South 72 degrees 55 minutes 26 seconds West 282.13-feet; North 87 degrees 12, minutes 57
seconds West 430,55 feet; North 39 degrees 08 minutes 23 seconds West 117.88 feet, North 63
degrees 15 minutes 41 seconds West 132.05 feet; North 89 degrees 55 minutes 37 seconds West
123.57 feet; thence North 25 degrees 28 minutes 16 seconds West 2.88 feet to a concrete
monument set on the creek bank: thence North 25 degrees 28 [ninnies 16 seconds West 354.79
feet to a concrete marker thence North 47 degrees 47 minutes 13 seconds East 334,76 feet to a
concrete marker thence North 23 degrees 47 minutes 43 seconds East 171.56 feet to a concrete
marker; thence North 28 degrees 1g minutes 33 seconds West 327.90 feet to a concrete marker
therm North 00 degrees 35 minutes 46 seconds East 910.16 feet to a concrete marker thence
South 86 degrees 30 minutes 06 seconds East 237.62 feet to a concrete marker; thence North 50
•
Exhibit A
9723054v8 25358.00012

degrees 01 minutes 21 seconds East 144,19 feet' to a concrete marker', thence North 84 degrees
21 minutes05seconds East 305.60 feet tog concrete marker; thence North 18 degrees 27
minutes 46 seconds East 250.96 feet to a concrete marker thence South 83 degrees 40 minutes
48-seconds East 275.25 feet to a concrete marker, thence South 87 degrees 05 minutes 42
seconds East 805,79 feet to a concrete marker; thence South 17 degrees 09 minutes 09 seconds.
East 257.42 feet to a ooncrette marker; thence South 85 degrees 29 minutes 37 seconds East
496,94 feet to an iron pipe set; thence South 85 degrees 29 minutes 37 seconds East 30.05 feet to
the center line of State Road No. 1924; thence with the center line of State Road No. 1924 South
09 degrees 46 minutes 40 seconds West 1867.37 feet to the beginning.
SAVING AND EXCEPTING, however, from the bounds of the premises above described the
old Faison Cemetery, containing 0.56 of an acre, more or less, encircled by a four (4) fool chain
link fence. Said cemetery being.located by running, from a concrete marker, the Northeast comer
of the R: E. and A.G. Williams 1.30 acre tract South 33 degrees 00 minutes 00 seconds 'West
448.27 feet South 31 degrees 00 minutes 00 seconds Wesi 781.23 feet and South 41 degrees 28
Minutes 45 seconds East 1594.33 feet to a stake on the northern edge of said cemetery together
with a perpetual easement of right away for Ingress, egress and regress, which cemetery is.
reserved as u burial ground for the heirs of William Faison, deceased.
Exhibit A
9723054v8 25358.00012

BK 1986 PG 0519
EXHIBIT B
PERMITTED EXCEPTIONS
1. Taxes or assessments for the year 2017 and subsequent years, not yet due and payable.
2. All restrictions, covenants, conditions, easements and other matters of record affecting the property
conveyed by this deed.
3. All applicable zoning rules and regulations.
4. Such state of facts as would be disclosed by an accurate survey and inspection of the property conveyed
pursuant to this deed.
10032637v3 25358.00012

5*$ER EREEK
VEGETABLE COMPANY
May 17, 2017
Mr. Trent Allen, Assistant Regional Supervisor
NCDEQ Division of Water Resources .
225 Green Street, Suite 714
Fayetteville, NC 28301-5043
Mr. Nathaniel Thornburg, PE
NCDEQ DWR Water Quality Permitting Section
Non -Discharge Unit
512 N. Salisbury Street
Raleigh, NC 27604
SUBJECT: Sager Creek Vegetable Company, Turkey, North Carolina
Non -Discharge Permit No. WQ0004268 — Sampson County
Dear Mr. Allen and Thornburg:
The Sager Creek Vegetable Company (Sager Creek) currently operates a Waste Water Treatment
Plant (WWTP) and land -application irrigation system pursuant to Division of Water Resources
(DWR) Non -Discharge Permit No. WQ0004268.
The purpose of this letter is to formally notify you that we sold our closed factory as well as 15-
acres south of the factory on April 27, 2017. The property was sold to KAMCP, LLC, 585 Cross
Creek Trail, Gibsonville, North Carolina 27249.
The attached survey map depicts the total 38.71-acre parcel sold to KAMCP, LLC. While we no
longer own a factory at our permitted site, we do anticipate the need to continue to operate the
permitted treatment lagoon, storage pond, and land application sites for several years to come as
we properly close these facilities.
Be aware that we stopped irrigating our lagoon/ pond waters across Fields A and C that adjoin the
new KAMCP, LLC property line last year. However, should we ever have to bring these fields
back into irrigation, we will provide the proper set -backs from the new property line per 15A
NCAC 02H .0200 and Condition II.11a. of our non -discharge permit.
Our remaining WWTP will continue to be supervised/ managed by Randall Jarrell/ ORC
Certification #23925. His office and personal needs will continue to be serviced by a work trailer
205 N. Wiget Lane, Walnut Creek, CA 94598

Sager Creek Vegetable Company
Non -Discharge Permit No. WQ0004268
Page 2 of 2
and portable toilet at the land application site near Field C1 that may be accessed by a NCDOT
permitted driveway on the west side of SR 1924 (Rowan Road).
If you have any questions or concerns, please do not hesitate to contact me at [phone] or
at [e-mail].
Sincerely,
SAGER CREEK VEGETABLE COMPANY
e.
Timothy P. Ruby
Environmental Water Manager
An: Property Site Map
cc: Tony Honeycutt, NCDWR Fayetteville

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