WQ0019907_Final Permit_20240731

July 31, 2024
JEFFREY T. LOHR, PE – CHIEF OF ENGINEERING
ONSLOW WATER AND SEWER AUTHORITY
228 GEORGETOWN ROAD
JACKSONVILLE, NORTH CAROLINA 28540-4146
Subject: Permit No. WQ0019907
Holly Ridge WWTF
Wastewater Irrigation System
Onslow County
Dear Mr. Lohr,
In response to your permit minor modification request received on April 1, 2024, and subsequent
additional information received on June 24, 2024, we are forwarding herewith Permit No. WQ0019907
dated July 31, 2024, to Onslow Water and Sewer Authority (ONWASA) for the construction and operation
of the permitted modifications, as well as the continued operation of the existing wastewater treatment and
irrigation facilities.
Modifications to the subject permit are as follows:
➢ ONWASA’s Summerhouse Wastewater Reclamation WWTP (Permit No. WQ0029945) can
send treated effluent to the Holly Ridge WWTF effluent storage lagoon to allow more flexible
management of wastewater disposal. This includes the construction of a new 8-inch effluent
transmission main from the Summerhouse Wastewater Reclamation WWTP to Holly Ridge’s
13.30 million gallon (MG) storage lagoon, of which approximately 1,500linear feet (LF)
located on Parcel No. 747-13.75 the Division has permitted therein.
This permit is effective from the date of issuance through November 30, 2029, shall replace Permit
No. WQ0019907 issued on November 23, 2022, and is subject to the conditions and limitations therein.
The Permittee shall submit a renewal application no later than June 3, 2029.
Please pay 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 may result in future non-compliance.
The Division has removed the following permit conditions since the last permit issuance dated
November 23, 2022:
➢ Old Condition II.3. – The Division has removed this condition.
➢ Old Condition VI.5. – The Division has replaced this condition with Condition I.4.
➢ Old Condition VI.11. – The Division has replaced this condition with Condition I.5.
➢ Old Condition VI.12. – The Division has replaced this condition with Condition I.6.
Mr. Jeffrey T. Lohr, PE
July 31, 2024
Page 2 of 2
The following permit conditions and attachments are new or modified since the last permit
issuance dated November 23, 2022:
➢ Condition I.1. – Upon completion of the permitted modifications, the Permittee shall submit an
engineering certification.
➢ Condition I.2. – Prior to operation of the constructed modifications, the Permittee shall contact
the Wilmington Regional Office to set up a startup inspection.
➢ Condition I.3. – Prior to the operation of the modified facilities, the Permittee shall submit an
amended Operation and Maintenance Plan.
➢ Condition I.4. – This condition replaces Old Condition VI.5.
➢ Condition I.5. – This condition replaces Old Condition VI.11.
➢ Condition I.6. – This condition replaces Old Condition VI.12.
➢ Condition VI.10. – The Permittee shall pay an annual fee for each year of the term of this permit
and continue to pay annual fees for any facility operating on an expired permit that the Division
has not rescinded or revoked.
➢ Attachment A – The Division has added PPI 002 to track water taken from the Summerhouse
Wastewater Reclamation WWTP.
This permit can be contested as provided in Chapter 150B of the North Carolina General Statutes
by filing a Petition for a Contested Case Hearing (Petition) with the North Carolina Office of Administrative
Hearings (OAH) within 30 calendar days. Requirements for filing a Petition are set forth in Chapter 150B
of the North Carolina General Statutes and Title 26 of the North Carolina Administrative Code. Those
interested in filing may access additional information regarding the requirements for filing a Petition and
Petition forms at the OAH website or by calling the OAH Clerk’s Office at [phone]. A party filing
a Petition shall serve a copy of the Petition on the Department of Environmental Quality’s Office of General
Counsel at 1601 Mail Service Center, Raleigh, NC 27699-1601. If the party filing the Petition is not the
Permittee, then the party shall also serve the Permittee pursuant to G.S. 150B-23(a).
Included with this permit are Division-approved plans and specifications. If you need additional
information concerning this permit, please contact Erick Saunders at [phone] or
[e-mail].
Sincerely,
Richard E. Rogers, Jr., Director
Division of Water Resources
cc: Onslow County Health Department (Electronic Copy)
Wilmington Regional Office, Water Quality Regional Operations Section (Electronic Copy)
Carl Scharfe, PE – The Wooten Company (Electronic Copy)
Laserfiche File (Electronic Copy)
Digital Permit Archive (Electronic Copy)

WQ0019907 Version 4.1 Shell Version 230725 Page 1 of 11
NORTH CAROLINA
ENVIRONMENTAL MANAGEMENT COMMISSION
DEPARTMENT OF ENVIRONMENTAL QUALITY
RALEIGH
WASTEWATER IRRIGATION SYSTEM PERMIT

Pursuant to 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
Onslow Water and Sewer Authority
Onslow County
FOR THE
operation of a 224,673 gallon per day (GPD) wastewater treatment and irrigation facility consisting of:
construction and operation of: approximately 1,500 linear feet (LF) of the 8-inch treated effluent
transmission main from the Summerhouse Wastewater Reclamation WWTP (Permit No. WQ0029945)
effluent pump station to the 13.30 million gallon (MG) storage lagoon that is located on Parcel No. 747-
13.75; and all associated piping, valves, controls, and appurtenances; the
continued operation of a 260,626 GPD wastewater treatment facility consisting of: headworks with a
manual bar screen and grit chamber; an ultrasonic flow meter; a 1.82 MG treatment lagoon with four
aeration cells (Cell 1 has five 3 horsepower (hp) Blue Frog floating aerators, Cell 2 has three 3 hp Blue
Frog floating aerators, Cell 3 has two 3 hp Blue Frog floating aerators, and Cell 4 has one 3 hp Blue Frog
floating aerator) with anti-erosion baffles, and a 0.3 MG settling cell; a tablet chlorinator disinfection
system; a 22,400 gallon aerobic sludge digester with a 2 hp aerator and a 3 hp discharge pump; a 150
kilowatt (kW) generator; an effluent pump station with two 450 gallon per minute (GPM) pumps;
approximately 17,900 LF of 8-inch force main; and all associated piping, valves, controls, and
appurtenances; and the
continued operation of a 224,673 GPD wastewater irrigation facility consisting of: a 13.30 MG storage
lagoon (51 days of storage); an irrigation pump station with two 700 GPM pumps and an effluent flow
meter; a 99.59 acre spray irrigation area with 11 fields; and all associated piping, valves, controls, and
appurtenances
to serve the Holly Ridge WWTF, with no discharge of wastes to surface waters, pursuant to the application
received on April 1, 2024, and subsequent additional information received on June 24, 2024, and in
conformity with the Division-approved plans and specifications considered a part of this permit.
This permit is effective from the date of issuance through November 30, 2029, shall replace Permit No.
WQ0019907 issued on November 23, 2022, and is subject to the following conditions and limitations:

WQ0019907 Version 4.1 Shell Version 230725 Page 2 of 11
I. SCHEDULES
1. Upon completion of construction and prior to operation of the permitted modifications, the Permittee
shall submit an engineering certification from a North Carolina licensed Professional Engineer
certifying that the permitted facility has been constructed pursuant to G.S. 143-215.1, Administrative
Code Title 15A Subchapter 02T, this permit, and the Division-approved plans and specifications. For
phased and partially certified facilities, the Permittee shall retain the responsibility to track further
construction approved under this permit and shall provide a final engineering certification upon project
completion. The Permittee shall submit the Engineering Certification via the Non-Discharge online
portal. [15A NCAC 02T .0116(a)]
2. The Permittee shall notify the Wilmington Regional Office, telephone number [phone], at least
two business days in advance of the initial operation of the constructed modifications so that the
Division can conduct a startup inspection. [15A NCAC 02T .0108(b)(1)(A)]
3. Prior to the operation of the modified facilities, the Permittee shall submit an amended Operation and
Maintenance Plan. The Permittee shall submit the amended Operation and Maintenance Plan via the
Non-Discharge online portal. [15A NCAC 02T .0108(b)(1)(B), 02T .0507(a)]
4. If the permitted facilities change ownership or the Permittee changes its name, the Permittee shall
submit a permit modification request on Division-approved forms within 90 days of the change of
ownership. The Permittee shall comply with all terms and conditions of this permit until the Division
transfers the permit to the successor-owner. [G.S. 143-215.1(d3)]
5. Pursuant to the flow reduction request received on November 19, 2007, and approved on December 18,
2007, the Division accepts the data-based design flow rate of 90 gallons per day per bedroom
(GPD/bedroom) for the users served by this facility. At no time shall wastewater flows exceed the
limits defined in this permit.
The Permittee shall report the measured monthly average amount of wastewater flow contributed per
unit (GPD/bedroom) for the 12 months prior to permit renewal. If any of these monthly averages are
within 20% of the approved value, the Permittee shall reevaluate the approved value using the
methodology applied to determine the approved flow rate of 90 GPD/bedroom and submit this
information with the renewal application for reevaluation of the approved flow rate. [15A NCAC 02T
.0114(f)]
6. The Permittee shall retain the Division’s written approval of the authorized adjusted daily design flow
rate for the life of this facility and shall transfer this approval to any future Permittee. [15A NCAC 02T
.0114(f)(4)]
7. The Permittee shall request renewal of this permit on Division-approved forms no later than June 3,
2029. [15A NCAC 02T .0105(b), 02T .0109]

WQ0019907 Version 4.1 Shell Version 230725 Page 3 of 11
II. PERFORMANCE STANDARDS
1. The Permittee shall operate and maintain the subject wastewater treatment and irrigation facilities so
there is no discharge to surface waters, nor any contravention of groundwater or surface water
standards. In the event the facilities do not perform as designed, including the creation of nuisance
conditions due to improper operation and maintenance, or failure of the irrigation areas to assimilate
the effluent, the Permittee shall take immediate corrective actions, including Division-required actions,
such as the construction of additional or replacement wastewater treatment or disposal facilities. [15A
NCAC 02T .0108(b)(1)(A)]
2. This permit shall not relieve the Permittee of its responsibility for contravention of groundwater or
surface water standards resulting from the operation of this facility. [15A NCAC 02T .0108(b)(1)(A)]
3. Effluent quality shall not exceed the limitations specified in Attachment A. [15A NCAC 02T
.0108(b)(1)(A)]
4. The Permittee shall not irrigate effluent in exceedance of the hydraulic and agronomic rates specified
in Attachment B. [15A NCAC 02T .0108(b)(1)(A)]
5. For wastewater irrigation fields originally permitted on or after December 30, 1983, the Division has
established the compliance boundary 250 feet from the irrigation area boundary or 50 feet within the
property boundary, whichever is closest to the irrigation area boundary. Any exceedance of
groundwater standards at or beyond the compliance boundary shall require the Permittee to take
corrective action. The Division shall note any Division-approved relocation of the compliance
boundary in Attachment B. The Division shall consider multiple contiguous properties under common
ownership and permitted for use as a disposal system as a single property regarding the determination
of a compliance boundary. [15A NCAC 02L .0106(e), 02L .0107(b), 02L .0107(c), 02L .0107(f), 02T
.0105(h)]
6. The Division has established the review boundary midway between the compliance boundary and the
irrigation area boundary. Any exceedance of groundwater standards at or beyond the review boundary
shall require the Permittee to take preventative action. [15A NCAC 02L .0106(d), 02L .0108]
7. The Permittee shall notify the Division of any sale or transfer of property affecting a compliance
boundary (i.e., parcel subdivision). [15A NCAC 02L .0107(l)]
8. The Permittee or any landowner who owns land within the compliance boundary shall not construct
any water supply wells within the compliance boundary. [15A NCAC 02L .0107(i)]
9. The Permittee shall ensure that any landowner who owns land within the compliance boundary and
who is not the Permittee executes and files with the Onslow County Register of Deeds an easement
running with the land. This easement shall contain either a notice of this permit, including the permit
number, a description of the type of permit, and the name, address, and telephone number of the
permitting agency; or a reference to a notice of this permit with book and page number of its
recordation. The landowner may request that the Director file a document terminating the easement
with the Onslow County Register of Deeds upon completion of the following:
a. The Permittee has completed all required groundwater remediation.
b. The Division determines that groundwater monitoring is no longer required pursuant to 15A NCAC
02L .0110(f).
c. The Permittee has abandoned monitoring wells pursuant to 15A NCAC 02C .0113.
[15A NCAC 02L .0107(k)]

WQ0019907 Version 4.1 Shell Version 230725 Page 4 of 11
10. The Permittee shall operate and maintain the permitted facilities pursuant to the following setbacks:
a. The Division originally permitted the irrigation sites on September 12, 2002, with an application
received on May 27, 2001. The setbacks for spray irrigation sites originally permitted or modified
with an application received from February 1, 1993, through August 31, 2006, are as follows (all
distances in feet):
i. Each habitable residence or place of assembly under separate ownership: 400 1
ii. Each private or public water supply source: 100
iii. Surface waters: 100
iv. Groundwater lowering ditches: 100
v. Surface water diversions (upslope): 100
vi. Surface water diversions (downslope): 100
vii. Each well with exception of monitoring wells: 100
viii. Each property line: 150 2
ix. Top of slope of embankments or cuts of two feet or more in vertical height: 15
x. Each water line: 10
xi. Each swimming pool: 100
xii. Public right of way: 50
xiii. Nitrification field: 20
xiv. Each building foundation or basement: 15
1 Habitable residences or places of assembly under separate ownership constructed after the
Division originally permitted or subsequently modified the facilities are exempt from this
setback.
2 Setbacks to property lines are not applicable when the Permittee, or the entity from which the
Permittee is leasing, owns both parcels separated by the property line.
[15A NCAC 02H .0219(j)(5)]
b. The Division originally permitted the treatment and storage units on September 12, 2002, with an
application received on May 27, 2001. The setbacks for treatment and storage units originally
permitted or modified with an application received from February 1, 1993, through August 31,
2006, are as follows (all distances in feet):
i. Each habitable residence or place of assembly under separate ownership: 400 1
ii. Each private or public water supply source: 100
iii. Surface waters: 50
iv. Each well with exception of monitoring wells: 100
v. Each property line: 50 2
vi. Nitrification field: 20
1 Habitable residences or places of assembly under separate ownership constructed after the
Division originally permitted or subsequently modified the facilities are exempt from this
setback.
2 Setbacks to property lines are not applicable when the Permittee, or the entity from which the
Permittee is leasing, owns both parcels separated by the property line.
[15A NCAC 02H .0219(j)(5)]

WQ0019907 Version 4.1 Shell Version 230725 Page 5 of 11
III. OPERATION AND MAINTENANCE
1. The Permittee shall operate and maintain the subject facilities as a non-discharge system. [15A NCAC
02T .0101]
2. The Permittee shall maintain an Operation and Maintenance Plan, which shall include:
a. A description of the operation of the system in sufficient detail to show what operations are
necessary for the system to function and who shall conduct the operations.
b. A description of the anticipated maintenance of the system.
c. Provisions for safety measures, including restriction of access to the site and equipment.
d. Spill control provisions that include response to upsets and bypasses, including control,
containment, and remediation; and contact information for personnel, emergency responders, and
regulatory agencies.
[15A NCAC 02T .0507(a)]
3. Upon the Water Pollution Control System Operators Certification Commission’s (WPCSOCC)
classification of the subject non-discharge facilities, the Permittee shall designate and employ a certified
Operator in Responsible Charge (ORC), and one or more certified operators as Back-up ORCs. The
ORC or its Back-up shall operate and visit the facilities as required pursuant to 15A NCAC 08G .0204
and 08G .0205. [15A NCAC 02T .0117]
4. The Permittee shall maintain a year-round vegetative cover on the irrigation area such that crop health
is optimal and allows even effluent distribution and inspection of the irrigation system. [15A NCAC
02T .0507(b)]
5. The Permittee shall take measures to prevent effluent ponding in or runoff from the irrigation area.
[15A NCAC 02T .0507(c)]
6. The Permittee shall not irrigate treated effluent during inclement weather or when the soil is in a
condition that will cause ponding or runoff. [15A NCAC 02T .0505(x)]
7. The Permittee shall test and calibrate the irrigation equipment annually. [15A NCAC 02T .0507(d)]
8. The Permittee shall only irrigate treated effluent from the Holly Ridge WWTF and the Summerhouse
Wastewater Reclamation WWTP onto the sites listed in Attachment B. [15A NCAC 02T .0501]
9. The Permittee shall not allow vehicles or heavy machinery on the irrigation area, except during
equipment installation or maintenance activities. [15A NCAC 02T .0507(e)]
10. The Permittee shall prohibit public access to the wastewater treatment, storage, and irrigation facilities.
[15A NCAC 02T .0505(q)]
11. The Permittee shall dispose of or utilize generated residuals in a Division-approved manner. [15A
NCAC 02T .0508, 02T .1101].
12. The Permittee shall not divert or bypass untreated or partially treated wastewater from the subject
facilities. [15A NCAC 02T .0505(j)]
13. The Permittee shall maintain a freeboard of not less than two feet in the 1.82 MG treatment lagoon and
the 13.30 MG storage lagoon. [15A NCAC 02T .0505(d)]

WQ0019907 Version 4.1 Shell Version 230725 Page 6 of 11
14. The Permittee shall provide gauges to monitor freeboard levels in the 1.82 MG treatment lagoon and
the 13.30 MG storage lagoon. These gauges shall have readily visible permanent markings, at inch or
tenth of foot increments, indicating the following elevations: the maximum liquid level at the top of the
temporary liquid storage volume, the minimum liquid level at the bottom of the temporary liquid
storage volume, and the lowest point on top of the dam. [15A NCAC 02T .0507(f)]
15. The Permittee shall establish and maintain a protective vegetative cover on all berms, pipe runs, erosion
control areas, surface water diversions, and earthen embankments (i.e., the outside toe of the
embankment to the maximum allowable temporary storage elevation on the inside of the embankment).
The Permittee shall remove all trees, shrubs, and other woody vegetation from earthen dikes and
embankments. The Permittee shall keep all earthen embankments mowed or otherwise controlled and
accessible. [15A NCAC 02T .0507(g)]
16. The Permittee shall test and calibrate metering equipment annually. [15A NCAC 02T .0507(d)]
17. The Permittee shall provide and maintain onsite an automatically activated standby power source
capable of powering all essential treatment units. If the Permittee employs a generator as an alternate
power supply, the Permittee shall test it weekly. [15A NCAC 02T .0505(l)]
IV. MONITORING AND REPORTING
1. The Permittee shall conduct and report any Division-required monitoring, including the monitoring of
groundwater, surface water or wetlands, waste, wastewater, residuals, soil, treatment processes, lagoon
or storage ponds, and plant tissue, if necessary to evaluate this facility’s impact on groundwater and
surface water. [15A NCAC 02T .0108(c)]
2. A Division-certified laboratory shall conduct all analyses for the required parameters specified in
Attachments A and C. Parameters measured on-site with in-line metering equipment are exempt from
a Division-certified laboratory analysis. [15A NCAC 02H .0805]
3. The Permittee shall continuously monitor flow through the treatment facility and report daily flow
values on Form NDMR. Facilities with a permitted flow of less than 10,000 GPD may estimate its
flow from water usage records provided the water source has a metering device. [15A NCAC 02T
.0105(k), 02T .0108(c)]
4. The Permittee shall monitor the treated effluent at the frequencies and locations for the parameters
specified in Attachment A. [15A NCAC 02T .0105(k), 02T .0108(c)]
5. The Permittee shall maintain records tracking the amount of effluent irrigated, which 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 site irrigation time.
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.
h. Maintenance of cover crops.
[15A NCAC 02T .0108(c)]
6. The Permittee shall measure and record weekly to the nearest inch or tenth of a foot of freeboard (i.e.,
the waste level to the lowest embankment elevation) in the 1.82 MG treatment lagoon and the 13.30
MG storage lagoon. The Permittee shall maintain the weekly freeboard records for eight years and
shall make them available to the Division upon request. [15A NCAC 02T .0108(c)]

WQ0019907 Version 4.1 Shell Version 230725 Page 7 of 11
7. On or before the last day of the month following the previous month’s sampling, t he Permittee shall
submit monitoring data (as specified in Conditions IV.3 and IV.4) on Form NDMR for each PPI and
operation and disposal records (as specified in Conditions IV.5 and IV.6) on Form NDAR-1 for every
site in Attachment B. If no activities occurred during the monitoring month, the Permittee shall still
submit monitoring reports documenting the absence of the activity. The Permittee shall submit the
reports via the Non-Discharge monitoring report portal. [15A NCAC 02T .0105(l)]
8. Pursuant to G.S. 143-215.1C(a), the Permittee shall provide to its users and the Division an annual
report summarizing the performance of the wastewater treatment and irrigation facility and the extent
to which the facility has violated this permit, or federal or state laws, regulations, or rules related to the
protection of water quality. The Permittee shall prepare this report on either a calendar or fiscal year
basis and shall submit it no later than 60 days after the end of the calendar or fiscal year. The Permittee
shall submit the annual report via the Non-Discharge online portal. [G.S. 143-215.1C(a)]
9. The Permittee shall maintain records of all residuals removed from this facility. The Permittee shall
maintain these records for eight years and shall make them available to the Division upon request.
These records 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. Residuals hauling date.
d. Volume of residuals removed.
[15A NCAC 02T .0508(b)]
10. The Permittee shall keep a log of all maintenance done at this facility. The Permittee shall maintain
this log for eight years and shall make it available to the Division upon request. This log shall include:
a. Date of flow measurement device calibration.
b. Date of irrigation equipment calibration.
c. Visual observations of the plant and plant site.
d. Record of preventative maintenance (e.g., changing of equipment, adjustments, testing,
inspections, cleanings, etc.).
e. Date and results of the alternate power supply testing.
[15A NCAC 02T .0507(h)]
11. The Permittee shall sample monitoring wells MW-1, MW-2, MW-3, and MW-4 at the frequencies and
for the parameters specified in Attachment C. [15A NCAC 02T .0105(m)]
12. On or before the last day of the month following the previous month’s sampling, the Permittee shall
submit a Compliance Monitoring Form (GW-59) and its associated laboratory analyses for each
monitoring well in Attachment C. The Permittee shall submit the Compliance Monitoring Forms via
the Non-Discharge monitoring report portal. [15A NCAC 02T .0105(m)]

WQ0019907 Version 4.1 Shell Version 230725 Page 8 of 11
13. The Permittee shall conduct an annual representative soil analysis (i.e., Standard Soil Fertility Analysis)
on each irrigation site listed in Attachment B. The Permittee shall maintain these results at the facility
for eight years and shall make them available to the Division upon request. Each 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)]
14. Noncompliance Notification:
The Permittee shall report to the Wilmington Regional Office, telephone number [phone],
within 24 hours of first knowledge 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, structural, etc.) that makes the facility
incapable of adequate wastewater treatment.
c. Any facility failure resulting in a discharge to 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.
Emergencies requiring reporting outside normal business hours shall call the Division’s Emergency
Response personnel at the telephone number [phone]. All noncompliance notifications shall
file a written report to the Wilmington Regional Office within five days of first knowledge of the
occurrence, and this report shall outline the actions proposed or taken to ensure the problem does not
recur. [15A NCAC 02T .0108(b)(1)(A)]
V. INSPECTIONS
1. The Permittee shall perform inspections and maintenance to ensure proper operation of the wastewater
treatment and irrigation facilities. [15A NCAC 02T .0507(i)]
2. The Permittee shall inspect the wastewater treatment and irrigation facilities to prevent malfunctions,
facility deterioration, and operator errors that may result in discharges of wastes to the environment,
threats to human health, or public nuisances. The Permittee shall maintain an inspection log that
includes the date and time of inspection, observations made, and maintenance, repairs, or corrective
actions taken. The Permittee shall maintain this inspection log for eight years from the date of the
inspection and shall make this log available to the Division upon request. [15A NCAC 02T .0507(h),
02T .0507(i)]
3. Division-authorized representatives may, upon presentation of credentials, enter and inspect any
property, premises, or place related to the permitted wastewater treatment and irrigation facilities at any
reasonable time for determining compliance with this permit. Division-authorized representatives may
inspect or copy records maintained under the terms and conditions of this permit and may collect
influent, treatment process water, effluent, residual, soil, plant tissue, groundwater, or surface water
samples. [G.S. 143-215.3(a)(2)]

WQ0019907 Version 4.1 Shell Version 230725 Page 9 of 11
VI. GENERAL
1. The Permittee’s failure to comply with this permit’s conditions and limitations may subject the
Permittee to a Division enforcement action. [G.S. 143-215.6A, 143-215.6B, 143-215.6C]
2. This permit is effective only for the nature and volume of wastes described in the permit application
and Division-approved plans and specifications. [G.S. 143-215.1(d)]
3. There are no variances to administrative codes or general statutes governing the construction or
operation of the permitted facilities unless the Permittee specifically requested a variance in the
application and the Division approved the variance as noted in this permit’s facility description. [15A
NCAC 02T .0105(b)]
4. This permit does not exempt the Permittee from complying with all statutes, rules, regulations, or
ordinances that other jurisdictional government agencies (e.g., local, state, and federal) may require.
[15A NCAC 02T .0108(b)(1)(A)]
5. The Permittee shall retain this permit and the Division-approved plans and specifications for the life of
the permitted facilities. [15A NCAC 02T .0105(o), 02T .0116(d)]
6. The Permittee shall comply with all permit conditions and requirements until the proper closure of the
permitted facilities, or until another appropriate authority permits the facilities. [15A NCAC 02T
.0105(j)]
7. This permit is subject to revocation or modification upon 60-day notice from the Division Director in
whole or part for:
a. Violation of any terms or conditions of this permit or 15A NCAC 02T.
b. Obtaining a permit by misrepresentation or failure to disclose all relevant facts.
c. The Permittee’s refusal to allow authorized Department employees upon presentation of
credentials:
i. To enter the Permittee’s premises where a system is located or where the Permittee keeps any
Division-required records under the terms and conditions of this permit.
ii. To have access to any permit-required documents and records.
iii. To inspect any monitoring equipment or method as required in this permit.
iv. To sample any pollutants.
d. The Permittee’s failure to pay the annual fee for administering and compliance monitoring.
e. A Division determination that the conditions of this permit conflict with the North Carolina
Administrative Code or General Statutes.
[15A NCAC 02T .0110]

WQ0019907 Version 4.1 Shell Version 230725 Page 10 of 11
8. Unless the Division determines that the Permittee needs a permit modification for the construction of
facilities to resolve non-compliance with any environmental statute or rule, or the Division Director
grants a variance, expansion of the permitted facilities shall not occur if any of the following apply:
a. The Permittee or any parent, subsidiary, or other affiliate of the Permittee has been convicted of
environmental crimes under G.S. 143-215.6B or under Federal law that would otherwise be
prosecuted under G.S. 143-215.6B, and the Permittee or any parent, subsidiary, or other affiliate of
the Permittee has abandoned or exhausted all appeals of this conviction.
b. The Permittee or any parent, subsidiary, or other affiliate of the Permittee has previously abandoned
a wastewater treatment facility without properly closing the facility in accordance with its permit
or 15A NCAC 02T.
c. The Permittee or any parent, subsidiary, or other affiliate of the Permittee has not paid a civil
penalty, and the Permittee or any parent, subsidiary, or other affiliate of the Permittee has
abandoned or exhausted all appeals of this penalty.
d. The Permittee or any parent, subsidiary, or other affiliate of the Permittee is currently not compliant
with any compliance schedule in a permit, settlement agreement, or order.
e. The Permittee or any parent, subsidiary, or other affiliate of the Permittee has not paid an annual
fee pursuant to 15A NCAC 02T .0105(e)(2).
[15A NCAC 02T .0120(b), 02T .0120(d)]
9. Unless the Division Director grants a variance, the Division shall not renew this permit if the Permittee
or any affiliation has not paid an annual fee pursuant to 15A NCAC 02T .0105(e)(2). [15A NCAC 02T
.0120(c), 02T .0120(d)]
10. The Permittee shall pay an annual fee for each year of the term of this permit pursuant to the schedule
in G.S. 143-215.3D(a). The Permittee shall continue to pay annual fees for any facility operating on
an expired permit that the Division has not rescinded or revoked. [15A NCAC 02T .0105(e)(2)]
Permit issued this the 31st day of July 2024
NORTH CAROLINA ENVIRONMENTAL MANAGEMENT COMMISSION
____________________________________________
Richard E. Rogers, Jr., Director
Division of Water Resources
By Authority of the Environmental Management Commission
Permit Number WQ0019907

WQ0019907 Version 4.1 Shell Version 230725 Page 11 of 11
Permit No. WQ0019907 Wastewater Irrigation System
Onslow Water and Sewer Authority July 31, 2024
Holly Ridge WWTF Onslow County
ENGINEERING CERTIFICATION
Partial Final
I, , as a duly licensed North Carolina Professional
Engineer, having periodically / fully observed the construction of the permitted modifications, do
hereby state to the best of my abilities that the facility was constructed in compliance with G.S. 143-215.1,
Administrative Code Title 15A Subchapter 02T, this permit, and the Division-approved plans and
specifications.
Documentation of any variation to this permit, and the Division-approved plans and specifications, is in the
attached as-built drawings.
Description of variations:

Professional Engineer’s Name

Firm Name Firm No.

Address

City State Zip Code

Telephone Email Seal, Signature, and Date
THE PERMITTEE SHALL SUBMIT THE COMPLETED ENGINEERING CERTIFICATION, INCLUDING
ALL SUPPORTING DOCUMENTATION, VIA THE NON-DISCHARGE ONLINE PORTAL.

THIS PAGE BLANK
ATTACHMENT A – LIMITATIONS AND MONITORING REQUIREMENTS Certification Date: July 31, 2024
Onslow Water and Sewer Authority Permit Number: WQ0019907 Version: 4.1
WQ0019907 Version 4.1 Attachment A Page 1 of 1
PPI 001 – WWTF Effluent
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
00310 BOD, 5-Day (20 ºC) mg/L Monthly Grab
00940 Chloride (as Cl) mg/L 3 x Year 1 Grab
50060 Chlorine, Total Residual mg/L Weekly Grab
31616 Coliform, Fecal MF, M-FC Broth, 44.5 ºC #/100 mL Monthly Grab
50050 Flow, in Conduit or thru Treatment Plant GPD 224,673 Continuous Recorder
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 Weekly Grab
00665 Phosphorus, Total (as P) mg/L Monthly Grab
70300 Solids, Total Dissolved – 180 ºC mg/L 3 x Year 1 Grab
00530 Solids, Total Suspended mg/L Monthly Grab
1. The Permittee shall conduct 3 x Year sampling in March, July, and November.

PPI 002 – Effluent from Summerhouse Wastewater Reclamation WWTP
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
50050 Flow, in Conduit or thru Treatment Plant GPD Continuous Recorder

THIS PAGE BLANK
ATTACHMENT B – APPROVED LAND APPLICATION SITES AND LIMITATIONS Certification Date: July 31, 2024
Onslow Water and Sewer Authority Permit Number: WQ0019907 Version: 4.1
WQ0019907 Version 4.1 Attachment B Page 1 of 1
IRRIGATION AREA INFORMATION APPLICATION LIMITATIONS
Field Owner Parcel No. County Latitude Longitude Net
Acreage
Dominant
Soil Series Parameter Hourly
Rate
Yearly
Max Units
1/1A Town of Holly Ridge 1 747-13.75 Onslow 34.515240° -77.502399° 9.82 Leon 01284 – Non-Discharge Application Rate 0.12 36.92 inches
1/1B Town of Holly Ridge 1 747-13.75 Onslow 34.513864° -77.501486° 9.62 Leon 01284 – Non-Discharge Application Rate 0.12 36.92 inches
1/1C Town of Holly Ridge 1 747-13.75 Onslow 34.513117° -77.501547° 8.07 Leon 01284 – Non-Discharge Application Rate 0.12 36.92 inches
1/1D Town of Holly Ridge 1 747-13.75 Onslow 34.512088° -77.500995° 3.74 Leon 01284 – Non-Discharge Application Rate 0.12 36.92 inches
2/2A-1 Town of Holly Ridge 1 747-13.75 Onslow 34.508936° -77.500775° 8.78 Pactolus 01284 – Non-Discharge Application Rate 0.12 36.92 inches
2/2A-2 Town of Holly Ridge 1 747-13.75 Onslow 34.508358° -77.500687° 12.20 Pactolus 01284 – Non-Discharge Application Rate 0.12 36.92 inches
2/2A-3 Town of Holly Ridge 1 747-13.75 Onslow 34.507327° -77.499024° 11.66 Pactolus 01284 – Non-Discharge Application Rate 0.12 36.92 inches
2/2B-1 Town of Holly Ridge 1 747-13.75 Onslow 34.506634° -77.499176° 8.63 Goldsboro 01284 – Non-Discharge Application Rate 0.12 21.84 inches
2/2B-2 Town of Holly Ridge 1 747-13.75 Onslow 34.506567° -77.497322° 5.84 Goldsboro 01284 – Non-Discharge Application Rate 0.12 21.84 inches
3/3A Town of Holly Ridge 1 747-13.75 Onslow 34.511579° -77.496661° 9.44 Pactolus 01284 – Non-Discharge Application Rate 0.12 36.92 inches
3/3B Town of Holly Ridge 1 747-13.75 Onslow 34.509802° -77.496684° 11.79 Pactolus 01284 – Non-Discharge Application Rate 0.12 36.92 inches
Total: 99.59
1. See attached Water Services Agreement and Lease Agreement between Onslow Water and Sewer Authority and the Town of Holly Ridg e for the use of 11 irrigation fields.

THIS PAGE BLANK
ATTACHMENT C – GROUNDWATER MONITORING AND LIMITATIONS Certification Date: July 31, 2024
Onslow Water and Sewer Authority Permit Number: WQ0019907 Version: 4.1
WQ0019907 Version 4.1 Attachment C Page 1 of 1
Monitoring Wells: MW-1, MW-2, MW-3, and MW-4
GROUNDWATER CHARACTERISTICS GROUNDWATER STANDARDS MONITORING REQUIREMENTS
PCS Code Parameter Description Daily Maximum Frequency Measurement Sample Type Footnotes
00940 Chloride (as Cl) 250 mg/L 3 x Year Grab 1
31616 Coliform, Fecal MF, M-FC Broth, 44.5 ºC #/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 pH 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 ºC 500 mg/L 3 x Year Grab 1
GWVOC Volatile Compounds (GW) Present: Yes/No Annually Grab 1, 4, 5
82546 Water Level, Distance from measuring point feet 3 x Year Calculated 1, 2, 3
1. The Permittee shall conduct 3 x Year monitoring in March, July, and November, and Annual monitoring in November.
2. The Permittee shall measure the water levels prior to purging the wells. The Permittee shall measure the depth to water in each well from the surveyed point on the top of the casing. The Permittee
shall measure pH after purging and prior to sampling for the remaining parameters.
3. The Permittee shall survey the measuring points (top of well casing) of all monitoring wells to provide the relative elevation of the measuring point for each monitoring well. The Permittee shall
survey the measuring points (top of casing) of all monitoring wells relative to a common datum.
4. Volatile Organic Compounds (VOC) – Analyze by one or more of the following methods:
a. Standard Method 6200 B-2011, PQL at 0.5 μg/L or less
b. Standard Method 6200 C-2011, PQL at 0.5 μg/L or less
c. SW-846 Method 8021 B, Low Concentration, PQL at 0.5 μg/L or less
d. SW-846 Method 8260 D, Low Concentration, PQL at 0.5 μg/L or less
e. Another method with prior approval by the Water Quality Permitting Section Chief
Any method used shall meet the following qualifications:
a. A Division-certified laboratory shall run any method used.
b. The method used shall include all the constituents listed in Table 6200:I of Standard Methods.
c. The method used shall provide a PQL of 0.5 μg/L or less supported by laboratory proficiency studies as required by the D ivision’s Laboratory Certification Branch. A Division-certified
laboratory shall qualify (estimate) and report any constituents detected above the MDL but below the PQL of 0.5 μg/L.
5. If monitoring detects any volatile organic compounds (VOC), then the Permittee shall immediately contact the Wilmington Regional Office supervisor, telephone number [phone], for
further instructions regarding any additional follow-up analyses required.
6. The Permittee shall report monitoring well data on Compliance Monitoring Forms (GW-59s) consistent with the nomenclature and location information provided in this attachment.

1 /27/2022, 5.02:27 PM
County Centerlines
WQ0919907 Site Map
.yam l
SPRAY IRRIGATION FIELDS
Z
�y0
71z-
Z
REATNIENT
FACILITY' as Sr�sa�nr� �Nuk�t
A "I,*
�n
m
m�
DOpz,L,
70
FIGURE 1- SITE MAP
1:3fi,1i2
TOWN OF HOLLY RIDGE WWTP AND 0 0.25 0.5 1 mi
WASTEWATER SURFACE IRRIGATION I I I I I I f I
0 0.4 0.8 1.6 km
C;NSLOW COUNTY State of North CaroNna DOT, Esrl, HERE, Gamtln, SafeGraph, INCREMENT
PERMIT NO. W00019907 P. METVNASA, USGS, EPA, NPS, US Census SUreau, USDA, 0NWASAGIS
Web AppBulder for ArcG IS
Esrl Community Maps Comrfbutors, Slate of North Carolina DOT, Es 0, HERE, Garmin, SafeGraph, INCREMENT P, METUNASA, USGS, EPA, NPS, US Census Bureau, USDA 1 Cnwasa GIS 1

F yak I
I T
zl
1p
' EFFLUENT PUMP STATION.
Ar
DIGESTER-�► K .
IL
R F.
G�
iw c C). '
r�
'
FIGURE 2-TREATMENT FACILITY
!
SITE
TOWN OF HOLLY RIDGE WWTP AND
', `I
4,
"-
WASTEWATER SURFACE IRRIGATION'
❑NSLOW COUNTY
+
PERMIT NO. W 0019907

lQ0019907 spray fields r. - 41 ..
Figure 2. Hody Ridge WWTF (WQ0019907) FIGURE 3 — SPRAY IRRIGATION FIELDS
TOWN OF HOLLY RIDGE WWTP AND
WASTEWATER SURFACE IRRIGATION
❑NSLOW COUNTY
PERMIT NO, WQ0019907

Ak-
c.
018
A 61
r �- T �. - r • • t � N Yl p -)) r,f
hr
rr J ��� __ - �, �� - - ; ) ids' _ • _ ,� "a �
Su
H
he n
k 20.5 - Round r ` d
—�� .,� ice- { •�^ Nri _j � � p
Railroad y - _ -
� I\
r �r 5 �ld_�� 1 �?' •p �1� 1 �� t li' I �l ra— c C
2r. "y ' j` •� L S ���a �L J
�•j �L �� .� ` `J . - it P; Tr "32 FIGURE 4 — SPRAY IRRIGATION TOPO MAP
TOWN OF HOLLY MIDGE WWTP AND
WASTEWATER SURFACE IRRIGATION
DNSLQW COUNTY
�;',' PERMIT NO. WQ0019907

rvvw
�OOHE] OPfAV161[�
KEY SHEET FOR
SPRAY IRFMATIOV SYSTEM
wl q IgfnAu AP N.
GENCRAL MOTES
9 `#AFL .� uro mvQ pf�r.(quf{� .K.A
m e.p lu rry .ew vn.r .wam
� qua .�n{.Ynawcv fuY
l W StLMY mYntll. v sl'Jm ww•]Mr.
i0 KW .ir drn Lw[Iw .p
�C4Y�LCn i.dt
I�bPlan R if.S.M w.[awc .pu �; uvsn+�c�
» �.rue.s �.0 w x ,r . rr •w ..mrss�
� � wu r wre ean>xe+n. ow.c
untie .wrnv� wr.n a wrnre nu.
0
-
+rJ[ a.y
ail
�,.wb.M assc
•aa.l
^A•
L{m vp
, .1nL afw wa
SOWN OP HOLLY RSDGe
crkPWW MALE
WASTE TREATMENT nSTEM
�
+ } � �
111 1tn p •qli .ouC _ iiew Nury Wt01 eM¢MA M1m
FIGURE 5 -SPRAY IRRIGATION DETAIL MAP
TOWN OF HOLLY RIDGE WWTP AND
WASTEWATER SURFACE IRRIGATION
_._ ..._.
ONSLOW COUNTY
PERMIT NO. WQ0019907

-,
RECEIVED!NCDEQIDWR
WATER SERVICE AGREEMENT JUL 1 5 2016
~on~Discharge
ermitting Unit
AGREEMENT made this 1 ST day of July, 2005, by and between ONSLOW WATER
AND SEWER AUTHORITY, a body politic and corporate of the State of North Carolina and the TOWN OF HOLLY RIDGE (the "Town") a political subdivision of the State ofNorth
Carolina;
WITNES SETH:
WHEREAS, the County of Onslow (the "County"), the City of Jacksonville
("Jacksonville"), and the Towns of Swansboro ("Swansboro"), Richlands, North Topsail Beach ("North Topsail") and Holly Ridge (''Holly Ridge"), acting through their respective governing
bodies, pursuant to the provisions of Article 1, Chapter 162A of the General Statutes ofNorth
Carolina, as amended, organized and incorporated the Onslow Water and Sewer Authority (the "Authority'') as a vehicle to assist in providing a satisfactory supply of potable water and sewer collection/treatment for the member governments of the Authority; and
WHEREAS, the County, Jacksonville, Richlands, Swansboro, North Topsail and Holly Ridge are the sole members of the Authority; and
WHEREAS, the Authority has entered into agreements with the United States of America which provide that the Marine Corps Base, Camp Lejeune, shall provide specified volumes of potable water and sewer treatment capacity to the Authority; and
WHEREAS, the Town is in need of additional potable water capacity and desires for the Authority to make water from Camp Lejeune available to the Town's citizens; and
WHEREAS, the Town has determi ned that the Authority will be better able to meet the needs of its citizens if the Authority leases and operates the water and sewer systems of its
member governments to which it will be providing water and sewer service (provided, however, that said determination applies only to the Town of Holly Ridge's water system at the present
time); and
WHEREAS, the Authority is authorized and empowered to acquire, lease, construct, reconstruct, extend, improve, maintain, better and operate potable water and sewage
collection/treatment facilities and has determined that it will be in its best interest and in the best interest of its member governments to lease, operate and maintain the water system of the Town;
and
WHEREAS, the Town has leased its water system to the Authority pursuant to a Capital Lease Agreement (the "Lease") of even date with this Agreement; and
WHEREAS, in consideration of the Town signing and delivering the Lease, the Authority
desires to enter into this Agreement to provide water service t o the citizens of the Town.
NOW, THEREFORE, in consideration of the foregoing and the mutual covenants and
conditions herein contained, it is agreed among the parties as follows:
1. Tenn. This Agreement shall become effective upon its execution and shall
continue in effect until the Lease is terminated.
2. Service. The Authority agrees, when economically and technically feasible, to
meet the potable water supply, treatment and distribution needs of the citizens of the Town, who
are not provided water, by any other governmental entity or public utility, subject to limitations
upon the Authority's ability to do so caused by (i) the amount of potable water supply, treatment
capacity and distribution lines available to the Authority, (ii) obligations of the Authority to
provide water service to others, (iii) the capacity of the Authority's water system and (iv)
completion of any improvements the Authority elects to make to enable it to provide water
service. Nothing herein shall obligate the Authority to provide any potable water supply if the
provision thereof will result in the Authority being in violation of any applicable laws or other
governmental regulations or result in a material breach of any agreements to which the Authority
is a party. The Authority shall maintain a satellite office in the Town for the purpose ofbill
payment and telephone communication from customers. The Town shall if requested by the
Authority provide at actual cost an office at the town hall but not equipment ( other than
telephones) and furnishings. The Authority shall pay the Town annually for the cost of such
office. ·
3. Planning. In order to provide for the public health and welfare, the Authority will
use reasonable efforts to develop additional potable water supply, treatment and distribution
facilities and sewer collection/treatment capacity to meet the needs of all of its customers and
will use financial planning practices, policies and procedures that are in the opinion of the
Authority reasonably sound to provide funds, through water and sewer user rates, impact fees
and related charges, and/or loans, necessary to provide the facilities to meet such needs.
4. Authority to Provide All Water Service. So long as the Authority is capable of
meeting the water needs of the citizens of the Town pursuant to this agreement, the Town shall
not without the prior consent of the Authority acquire or produce potable water from any source
other than the Authority. The parties agree that in the event the Town breaches provisions of this
paragraph, monetary damages would not adequately compensate the Authority and in the event
of such breach, the Authority shall be entitled to equitable relief requiring that the Town comply
with the terms of this paragraph.
5. Operation and Maintenance. The Authority shall operate and maintain or cause
to be operated and maintained its water and sewer systems in a safe, efficient and economical
manner, making all necessary and proper repairs, replacements and renewals consistent with
good business and operating practices for comparable facilities in accordance with applicable
standards of regulatory bodies. The Authority shall cause a consulting engineer(s) to inspect its
systems at least once every thirty six months and to submit to the Authority a report ide ntifyi ng
any operation or maintenance or repair problems and setting forth for the ensuing thirty six
month period (a) the engineer's recommendations as to any revisions that should be made in the
m e thods of operation and maintenance of the systems and any r epairs that must be m ad e to
2
properly operate and maintain the systems in such period and his estimate of the cost of such
repairs and methops, (b) his estimate as to the amount of adequate reserves for extraordinary
repairs, renewals and replacements to the systems in such period, ( c) his estimate as to the
staffing requirements of the Authority for such period and ( d) his estimate as to any additional insurance that may be needed to insure the Authority against loss due to casualty loss or damage to the systems.
The Town shall be entitled at its expense to paint upon the Town's existing water tank/tower, the words ''The Town of Holly Ridge", a logo of the Town's choosing or any other words or graphics of its choice and to install upon the tank/tower such lighting as it chooses, whether to illuminate the Town's name and/or logo or other words or graphics or whether for holiday or seasonal purposes, and shall be entitled to a perpetual, relegable non-exlcxusive
easement and right of entry, ingress, egress and regress upon said tank/tower for the purposes of installing, maintaining, servicing, repairing, removing and replacing such words, graphics or lighting, provided that such activity does not unreasonably interfere with the Authority's operation of the tank/tower as anticipated and provided herein.
6. Insurance. The Authority shall carry at all times insurance covering all properties belonging to its water and sewer systems insuring against loss or damage from such causes as are customarily insured against by enterprises of a similar nature.
7. Ordinances and Regulations. All water service provided to the citizens of the
Town shall be subject to and in accordance with the Authority's Rules and Regulations for Rendering Water Service, as they may be amended from time to time. The Authority's Rules and Regulations for Rendering Water Service shall address all aspects of water service to the Town. except water and sewer system expansions within the Town and the Town's area of extraterritorial jurisdiction (the "ETJ"). The Town agrees during the term of this agreement to enact and at all times maintain in effect an ordinance(s) governing the expansion of water and sewer utilities within the Town's corporate limits and the ETJ (the "Town Ordinance"). The Authority shall only make expansions to the Authority's water and sewer lines fo r the purpose of serving new customers within the Town's corporate limits and the ETJ in accordance with the Town Ordinance. Notwithstanding the foregoing, the Authority may make System extensions within the Town or the ETJ in accordance with the Authority's ordinances, rules and regulations if the Town does not have its own ordinances in effect governing System expansions and
extensions within such areas .
8 . Billing. The Town and the Authority shall work cooperatively and take all steps r easonable necessary to provide that customers who received water service from the Authoirty
and who also receive sewer service, solid waste service or recycling service ( or any combination
thereof) from the Town receive only one bill for all of the services. The parties anticipate at this time that the Town will provide the Authority the Town's billing information for sewer, solid waste and recycling services and that the Authority will issue one bill to each customer for all of said services received by that customer and remit to the Town the portion of the receipts that represents the Town's charge for the service(s) provided by the Town.
3
9. Representations and Warranties. The Town and the Authority each represent to the other:
a. That each has the full legal right, power and authority to execute this agreement;
b. That each by official action prior to or concurrently with the date hereof by action of its respective governing boards approve the execution and delivery of this agreement;
c. This agreement constitutes the legal, valid and binding agreement of each party hereto, enforceable in accordance with its terms except as enforcement hereof may be limited by banlcruptcy, insolvency, reorganization, moratorium or similar laws effecting the enforcement of creditors rights generally and may be limited by general equitable principles concerning remedies.
d. In addition to the mutual representations set out in this paragraph, the Authority specifically acknowledges that the future well-being and orderly growth of the Town is largely contingent upon the availability of potable water supply and waste-water collection and treatment capacity and that the Town is engaged at the present time in a substantial capital improvements project to upgrade and increase it wastewater collection and teatment capacities. The Authority agrees that it will extend its services into those areas contiguous with the Town's corporate limit and those areas contained within the Town's area of extraterritorial jurisdiction only in accordance with the Town's annexation policy and that the Authority will ensure whenever economically and technically feasible that its services are in fact extended into all areas for which the owner has petitioned the Town for annexation.
10. Successors and Assigns. This agreement shall be binding upon, inure to the benefit of and be enforceable by the parties hereto and their respective successors and assigns; provided, however, that neither party may assign their rights, liabilities and obligations hereunder without the consent of the other party except that the Authority may assign this agreement to a trustee without the consent of the Town in regard to Authority Bond issues or other financings.
11 . Severability. If any provision of this agreement shall be held invalid or unenforceable by any court of competent jurisdiction, such holding shall not affect any other provision thereof.
12. Waiver. Any party's failure to insist upon the strict performance of any provision of this agreement, or to exercise any right based upon a breach thereof, or the acceptance of any performance during such breach, shall not constitute a waiver of any rights under this agreement.
13 . Counterparts. This agreement may be executed in several counterparts, any of which shall be regarded for all purposes as one original.
4
14. Controlling Law. This agreement shall be construed and enforced in accordance with the laws of the State of North Carolina. ·
IN WITNESS WHEREOF the parties have executed this agreement the day and year first above written.
1\-.U-e:.) l---,
~-~-
(...~ .v-,c. P.>~J
ONSLOW WATER AND SEWER AUTHORITY
,-----;:
By: ~ ,,/~
TOWN OF HOLLY RIDGE
By:~~~
CAPITAL LEASE AGREEMENT
THIS CAPITAL LEASE, entered into as of the 30th day of June, 2005, by and between the TOWN OF HOLLY RIDGE, a municipal corporation of the State of North Carolina (the "Town") and ONSLOW WATER AND SEWER
AUTHORITY, a body politic and corporate of the State of North Carolina (the "Authority'').
RECITALS:
This Capital Lease Agreement is entered into pursuant to the terms of Agreement to Lease Utility System (the "Agreement to Lease") between the
Town and the Authority dated the J_2Jday of £4:vf,1.,.D , 2005.
AGREEMENT
The Town hereby leases to the Authority and the Authority hereby rents from the Town, the Town's water system consisting of the real and physical
assets described on Schedule 3.6(a)(i) of the Agreement to Lease (the "Leased Assets"). All of the Leased Assets are located in the Town. The Town also assigns and transfers to the Authority the 'Transferred Assets" described in Article I, Section 2.1 of the Agreement to Lease .
1. Term. This lease shall commence on July 1, 2005 (the
"Commencement Date") and shall terminate June 30, 2035.
2. Option to Extend. Provided that the Authority is in compliance with all the terms and conditions of this lease, it may extend the term of this lease for additional successive terms of 15 years each by the giving of Notice of election to extend, which Notice must be given no later than 2 years before the end of the original or any extended term of this Agreement. The Authority shall be entitled to exercise these options to extend at any time after the Commencement Date.
3 . Rent. The rent for the entire term and extended term of this lease shall be payable on or in advance of the Commencement Date and shall consist of the payment of the Town's bond and other indebtedness as required by Article
II of the Agreement to Lease.
4. Possession. The Authority shall have exclusive possession of the Leased Assets which shall be delivered to the Authority on the Commencement Date; provided, however, that the lease of the real property upon which the Town's existing water tower/tank is located shall be non-exclusive and Holly Ridge retains the right to use said real property in any reasonable manner not inconsistent with the lease contemplated herein, including without limitation, the right to negotiate for and place antennas on the water tower in accordance with current standards so long as appropriate Authority personnel approves the same for the sole purpose of ensuring safety and structural integrity of the tower. All
proceeds from antenna rentals shall belong to the Town. The Town shall.also be entitled to maintain its name in print on the face of the water tank.
5 . Alterations and Abandonment. The Authority may make such
alterations to the Leased Assets as the Authority in its sole discretion deems
appropriate. The right to alter the Leased Assets includes but is not limited to the
right to connect the Leased Assets with and make them a part of other utility
facilities leased or owned by the Authority (the Leased Assets together with the
other utility facilities owned or leased by the Authority are referred to herein as
the "System"). The Authority may also abandon and dispose of any of the
Leased Assets which become obsolete or which the Authority otherwise deems
are not necessary for the proper operation and maintenance of the System;
provided, however, that before disposing of any Leased Assets which the
Authority has abandoned it shall first give Notice of such intent to the Town. If the Town does not take possession of such abandoned property within 45 days
of such Notice, the Authority shall be free to dispose of the property without
liability to the Town. Any portion of the Leased Assets comprised of real estate
or easements encumbering real estate not put to public use by the Authority for a continuous period of eighteen months shall be considered abandoned and shall
be returned to the Town.
6. System Operation and Maintenance. The Authority shall at its sole
cost and expense operate and maintain or cause to be operated and maintained,
the System in a safe, efficient and economical manner making all necessary and
proper repairs, replacements and renewals consistent with good business and operating practices for comparable facilities and in accordance with applicable
standards of regulatory bodies.
7. Extensions and Additions. The Authority may at its sole cost and
expense make such enlargements and extensions to the System as it deems
appropriate and such extensions and additions may be connected to the Leased
Assets. All such extensions and additions shall be the sole property of the
Authority.
8. Use. The Authority shall establish and enforce rules and
regulations governing the use and operation of the System. The Authority shall
not permit the use of the System for any unlawful purpose.
9. User Rates/Revenues. The Authority shall for each fiscal year
establish utility user rates which are at least sufficient to pay its current expenses
for operation and maintenance and debt service on its debt obligations. The
Authority shall not incur current expenses in any fiscal year in excess of the
reasonable and necessary amount th e reof. All revenues from the System shall
be the sole and exclusive property of the Authority and the Town shall have no
claim to such revenues by virtue of the Town owning the Leased Assets.
10. Annual Review of the System/Other Information and Reports. (a)
The Authority shall cause its consulting engineer to make a review of the System
at least once in each Fiscal Year and, on or before the 60th day next preceding
the first day of each Fiscal Year, to submit to the Authority a report setting forth
(a) its findings whether the System has been maintained in good repair, working
order and condition and (b) its recommendations as to:
(i) the proper maintenance, repair and operation of the System
during the ensuing Fiscal Year and an estimate of the amount of money
necessary for such purposes, and
(ii) the improvements, renewals and replacements that should
be made during the ensuing Fiscal Year and an estimate of the amount of money
necessary for such purposes.
Promptly after the receipt of such reports by the Authority, copies thereof
shall be mailed by the Authority to the Town.
If any such report of the consulting engineer indicates that t he System has
not been maintained in good repair, working order and condition, the Authority
promptly shall restore the System to good repair, working order and condition
with all expedition practicable.
_ (b) The Authority shall within 14 days of receipt provide the Town
with a copy of (i) its audited financial statements for each fiscal year, (ii) the
minutes of its Board meetings, (iii) all notices of violations received from any
state or federal agency and (iv) all security advisories from the Department of
Homeland Security or other cognizant state or federal agency.
( c) The Executive Director of the Authority shall within 30 days
after receipt of the Authority's annual audit provide a written report to the Town
on the financial condition of the Authority. The Executive Director shall also
provide such other written reports as the Town may reasonably request from time
to time so long as obtaining the information for the report does not require the
hiring of consultants or the expenditure of funds by the Autho rity other than the
normal salary of its staff and related costs.
11 . Insurance. From the Commencement Date forward , the Authority
shall carry at all times insurance with a re sponsible insurance company or
companies, authorized and qualified under the laws of the State to assume the
risk thereof, covering such properties belonging to the System as are customarily
insured, against loss or damage from such causes as are customarily insured
against, by enterprises of a similar nature and also comprehensive general
liability insurance on the System for bodily injury and property damage, provided
that the same shall meet the following minimum requirements:
(a) fire (with Uniform Standard Extended Coverage
Endorsements or equivalent coverage obtainable through federal or State programs) and vandalism and malicious mischief insurance, as may be approved for issuance in the state, including insurance against loss or damage from lightning, windstorm, hail, hurricanes, tornadoes, floods, explosion, riot, riot attending a strike, civil commotion, aircraft, vehicles and smoke, at all times in amounts equal to the greater of ( 1) the principal amount of all bonds of the Authority at any time outstanding and (2) the full replacement cost of the properties comprising the System, which amount shall be sufficient to ensue that the Authority could not become a co-insurer under the terms and conditions of the applicable policy or policies. The replacement cost of the properties
comprising the System shall be determined at least once every five years or more often upon the request of the insurer by an appraisal by qualified
appraisers or other persons or entities selected by the Authority. The Authority shall provide a copy of the appraisal to the Town within 30 days after the receipt thereof.
(b) comprehensive general liability insurance with limits of not less than $2,000,000 combined single limit for bodily injury and property damage occurrence;
(c) workers' compensation insurance in such amounts as are required by laws.
If upon mutual consent the Authority and the Town determine that the amount of insurance coverage required by this paragraph is not available on reasonable terms and conditions, the insurance coverage required by this paragraph may be modified in accordance with such determination, and the coverage as modified shall constitute the minimum requirements of this agreement.
All insurance coverage shall be maintained through policies that (i) are issued by a financially responsible insurer or insurers qua lified to write the respective insurance in the State and of recognized standing, (ii) are in such form and contain such provisions (including, without limitation, the loss payable clause, the waiver of subrogation clause, clauses relieving the insurer of liability to the extent of minor claims, and the designation of the named insured parties) as are generally considered customary provisions for the type of insurance involved, and (iii) prohibit cancellation or substantial modification by the insurer without at least 60 days' prior written notice to the Authority.
The Authority shall have no liability for casualty losses to or of the System except for its obligation to maintain the insurance required by this paragraph and to apply insurance proceeds as required by this paragraph.
13. Compliance with Applicable Law. The Authority shall comply or
cause there to be compliance with all applicable laws, orders, rules, regulations
and requirements of all municipal or other governmental authorities relating to the
use, operation and occupancy of the System. Nothing contained in this
paragraph shall prevent the Authority from contesting in good faith the
applicability or validity of any law, ordinance, order, rule, regulation or
requirement so long as the authority shall have received an opinion of Authority
counsel to the effect that such failure to comply during the period of such contest
will not materially impair the use or the revenue.:producing capacity of the
System.
14. Consultants. The Authority agrees to employ such accountants,
consulting engineers and attorneys and to at give them such access to the
System as necessary to perform the duties imposed on them by this Lease.
15. Contracts, Leases. and Other Agreements: Water Supply
Agreements. The Authority may contract or agree for the performance by others
of operations or services in connection with the System or any part thereof for
any lawful purpose; provided, however, that the Authority shall remain fully
obligated and responsible under this lease to the same extent as if such lease or
contract had not been executed.
16. Payment of Charges and Discharge of Liens. The Authority shall
pay or cause to be discharged, or shall make adequate provision to satisfy and
discharge, within 60 days after the same shall become due and payable all lawful
costs, expenses, liabilities and charges relating to the maintenance, repair,
replacement, improvement and operation of the System and all lawful claims and
demands for labor, materials, supplies or other objects that might by law become
a lien upon the System or System revenues if unpaid, provided that nothing
contained in this paragraph shall require the Authority to pay or cause to be
discharged, or make provision for the satisfaction and discharge of any cost,
expense, liability, or charge so long as the validity thereof shall be contested in
good faith and by appropriate legal proceedings in the same manner as is
hereinafter provided for the contest of liens and encumbrances.
If any lien not specifically permitted hereby is filed or asserted against the
System or System revenues or any part of the foregoing by reason of labor,
materials, supplies or other items supplied or claimed to have been supplied on
or to the System at the request or with the permission of the Authority or of
anyone claiming to act for the Authority, then within 30 days after it receives
notice of the filing or the assertion thereof, the Authority shall cause the same· to
be discharged of record or effectively prevent the enforcement or foreclosure
thereof against the System or System revenues, or any part of the foregoing, by
contest, payment, deposit, bond, order of court or otherwise. Nothing in this
Section shall require the Authority to satisfy or discharge any such lien,
encumbrance, charge , claim or demand so long as the validity thereof shall be
contested in good faith and by appropriate legal proce~dings, and the Authority
shall have received an opinion of Authority Counsel to the effect that such
contest does not jeopardize the interests of the authority, in the System or
System revenues or a ny part of t he foregoing; provided that prior to such contest
the Authority shall have prevented the foreclosure or enforcement of any lien,
claim, encumbrance, charge or demand against the Authority by payment or
order of court, or by depositing with an escrow agent, an amount sufficient to
satisfy or discharge such lien, claim, encumbrance, charge or demand, or by
obtaining a surety bond in an amount sufficient to satisfy the same.
17. Easements. To the extent permitted by law and for a public
purpose, the Authority may lawfully grant or release, as the case may be, with or
without consideration, easements, rights of way, licenses or other rights over,
upon or beneath the surface of the land constituting a part of the System,
provided that the efficient operation of the System shall not be thereby impaired.
18. Eminent Domain . (a) If any public authority or entity, in the
exercise of its powers of eminent domain, takes or damages the System, or any
material part thereof, the Authority shall take, or cause to be taken, prompt and
appropriate measures to protect and enforce its rights and interests in connection
with any condemnation proceedings, and the Authority shall cooperate with the
Town in the protection of their mutual rights and interests. Prompt written notice
of any taking or damaging of any material part of the System or of any official
notice of any proceeding thereof of any public instrumentality, body, agency or
officer shall be given to the Town and to the other interested party by the party
first informed thereof.
(b} I mmediately after a ny s u c h taking or damaging of the
System, the Authority shall either replace, repair, rebuild or restore the System or
cause the net proceeds of any award or compensation resulting from any such
taking or damaging (being the total proceeds therefrom less all reasonable and
necessary legal and other costs and expenses incurred by the Authority in
connection with such taking or damaging) to be applied to the redemption of
bonds, o r if no bonds are outstanding , to be deposited to the Authority's general
fund .
19. Event of Default. Each of the following events is hereby declared
an "Event of Default":
{a) payment of the interest on any bonds of the Authority shall
not be made when the same shall become due and payable;
(b) payment o f the p rin cipal of, or the redemption premi um, if
any, on any bonds of the Authority shall not be made when due and payable,
whether at maturity, by proceedings for redemption , or pursuant to a sinking fund
requirement or otherwise;
{c} failure of the Authority to perform, observe or comply with
any of the other covenants, agreements, conditions or provisions in this lease
and the continuance thereof for a period of 30 days after receipt by the Authority
of a Notice from the Town specifying such default and requesting that it be
corrected; provided, however, if prior to the expiratio~ of such 30-day period the
Authority institutes action reasonably designed to cure such default, no "Event of
Default" shall be deemed to have occurred upon the expiration of such 30-day
period for so long as the Authority pursues such curative action with reasonable
diligence and provided that such curative action can be completed within a
reasonable time;
( d) The discontinuance of the operation and maintenance of the
System, without cause, for a continuous period of 5 days after receipt by the
_ Authority of a written notice from the Town specifying such default and
requesting that it be corrected;
(e) an order or decree shall be entered, with the consent or
acquiescence of the Authority, appointing a receiver or receivers of the Authority
or of the At,1thority's revenues, or if such order or decree, having been entered
without the consent or acquiescence of the authority, shall not be vacated or
discharged or stayed on appeal within sixty (60) days after the entry thereof;
{f) any proceeding shall be instituted, w ith the consent or
acquiescence of the Authority, for the purpose of effecting a composition
between the Authority and its creditors or for the purpose of adjusting the claims
of such creditors, pursuant to any federal or state statute now or here after
enacted; or
(g) any court of competent jurisdiction shall assume custody or
control of the Authority or of the whole or any substantial part of its property or
the System, under the provisions of any other l aw for the relief or aid of debtors,
·and such custody or control shall not be terminated within sixty (60) days from
the date of assumption of such custody or control.
20. Remedies. Upon the occurrence of any Eve nt of Default, the Town
may, upon notice to the Authority, terminate this Lease and upon such
termination, the Authority shall d eliver the Leased Assets to the Town "as is";
provided, however, that before the termination of this Lease shall become
effective, (A) the Authority, the Town and any other units of gove rnm ent to which
or to whose citizens the Authority provides utility service shall have entered into
an agreement(s) addressing (i) the disposition of the Authority's debt and non-
tangible assets, (ii) the continued operation by the Authority of the re mainder of
its System or the disposition of the remainder of the System if not to be operated
and maintained by the Authority, and (iii) the method of joint
ownership/operation and maintenance of those portions of the Leased Assets (and the remainder of the System if not to be operated and maintained by the Authority) which provide common service to more than one member government of the Authority or its citizens, and {B) the agreement(s) required by this paragraph must be approved by the Trustee under the General Trust Indenture of the Authority dated as of June 15, 2004.
21. No Transfer or Encumbrance by the Town. The Town shall not voluntarily transfer, convey or encumber or suffer the involuntary transfer,
conveyance or encumbrance of the Leased Assets. ·The Authority shall be entitled to take such legal action in the name of the Town as it deems appropriate to protect the Leased Assets from such transfer, conveyance or encumbrance.
22. Utilities. The Authority shall provide all electricity and other utilities needed for the operation of the Leased Assets [Joint Use Facilities].
23. Pledge of Leased Assets. The Authority may pledge and encumber the System (including the Leased Assets) and the revenues thereof to secure bond and other indebtedness of the Authority. The Authority may also pledge and mortgage its interest in this Lease to secure such indebtedness. All such pledges and encumbrances shall be superior to this Lease and to all rights and interest of the Town herein; provided, however, that the bond indenture or other documents evidencing and securing such indebtedness contain a provision to the effect that upon the occurrence of any event of default under and bond, note, indenture or other security or related loan/bond document, the trustee or the holder of such indebtedness, as the case may be, shall provide the Town with written notice of such default and the Town shall have the right to cure such event of default within the cure period granted to the Authority in such indenture or other document.
24. Incorporation by Reference. The terms of the Agreement to Lease are incorporated herein by reference and made a part hereof.
25. Notices. All notices ("Notice") or other communications which are required or permitted hereunder shall be in writing and sufficient if (a) delivered personally or (b) sent by registered or certified mail, postage prepaid, or (c) sent by overnight courier with a nationally recognized courier, or (d) via facsimile
confirmed in writing in any of the foregoing manners, as follows :
If to the T own:
with copies to:
If to the Authority:
With a copy to :
PO Box 7227
Jacksonville, NC 28540
Hogue, Hill, Jones, Nash & Lynch, L.L.P.
101 South Third Street
P. 0. Drawer 2178 (28402)
Wilmington, NC 28401
Attention: William 0. J. Lynch
Any party may change its address for purposes of Notice by giving notice in
accordance with the provisions of this Section. Any Notice will be deemed to be
given when received, if personally delivered or sent by telecopy, and, if mailed,
five days after deposit in the United States mail, properly addressed, with proper
postage affixed.
26. No Waiver. No failure by either party to insist upon the strict
performance of any provision of this Lease or to exercise any right or remedy
consequent upon a breach thereof, and no acceptance of full or partial rent or
other performance by either party during the continuance of any such breach
shall constitute a waiver of any such breach of such provision.
27. Further Assurances. The Town shall cooperate with the Authority
and the Authority's lenders to make such modifications to this Lease as may be
required to facilitate financing by the Authority to the extent such requested
modifications do not increase the costs to the Town and are otherwise consistent
with the purpose and intent of this Lease.
28. Disputes. Any disputes involving the operation, effect, extension ,
or termination of this Agreement shall be submitted to mediation as a explicit
condition precedent to litigation.
29. Quiet Enjoyment. So long as the Authority has not committed an
Event of Default, it shall have the quiet and peaceful enjoyment of the Leased
Assets, free from any interference whatsoever from the Town.
30. Holding Over. In the event the Authority holds over after the
expiration of the original or the extended term of this Lease, this Lease shall
become a lease from year to year.
31. Successors. The terms of this Lease are binding on the
successors and assigns of the Town and the Authority.
[REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]
[SIGNATURE PAGE TO CAPITAL LEASE AGREEMENT BElWEEN
ONWASA AND HOLLY RIDGE]
IN WITNESS WHEREOF, the parties hereto have caused this Agreement
to be duly executed as of the day and year first above written.
TOWN:
TOWN OF HOLLY RIDGE
By:.~/lL&-: 4z/M/2/
Its: ~~ Titl._e_: -121-4---=-.. ....,y.-0-/_: ____ _
AUTHORITY:
ONSLOW WATER AND SEWER AUTHORITY
By: ,--·-, ··1:~~
It , ~ s: ___________ _
Title: Lro~. ty\ Q..0..
I , _..W-t.·1>e...'20,.,o~a Notary Public of the county and state aforesaid, certify that Af,a .-,i, .I\ 1 r:b±l= personally came before me this day and acknowledged that he is the __ Chairman of Onslow Water and Sewer Authority, a body corporate and politic, and that he , as __ Chairman, being authorized to do so, executed the foregoing on behalf of said Onslow Water and Sewer Authority. WITNESS my hand and seal, this the~ day of ~ , 20~
My commission expires: b'l>l,~l o'i
(SEAL)
__,,~-~~~...:=,L.G~~=-1!...-=---Notary Public