NCG210197_COMPLETE FILE - HISTORICAL_20140514

STORMWATER DIVISION CODING SHEET
NCG PERMITS
PERMIT NO.
/V Chi C�f I D I q -/
DOC TYPE
� HISTORICAL FILE
❑ MONITORING REPORTS
DOC DATE
❑ C7 51
YYYYMMDD

e
ti
NCDENR
North Carolina Department of Environment and Natural Resources
Pat McCrory
Governor
Ms Susan D Fletcher
Canton Sawmill LLC
P O Box 1463
Canton, NC 28716
Dear Ms Fletcher
Jo�hnlE Skvarla, III
RECEI i! EeU'tary
May 14, 2014 MAY 16 2014
CENTRAL FILES
DVVQIBOG
Subject NPDES General Permit NCG210000
Canton Sawmill LLC
Formef ly Canton Hardwood Company Inc
Certificate of Coverage NCG210197
Haywood County
Division personnel received your request to revise your stormwater permit Certificate of
Coverage to accurately reflect your new company and/or facility name
Please find enclosed the revised Certificate of Coverage The terms and conditions contained
in the General Permit remain unchanged and in full effect This revised Certificate of Coverage
is issued under the requirements of North Carolina General Statutes 143-215 1 and the
Memorandum of Agreement between North Carolina and the U S Environmental Protection
Agency
If you have any questions or need further information, please contact the Stormwater
Permitting Program at [phone]
Sincerely,
4, !—""-/'
for Tracy E Davis, P E , CPM, Director
Division of Energy, Mineral and Land Resources
cc Asheville Regional Office, L Herbert
Deborah Reese, DEMLR Budget Office — please update billing info
Stormwater Permitting Program Files
Central Files
Division of Energy, Mineral, and Land Resources
Energy Section - Geological Survey Section • Land Quality Section
1612 Mail Service Center, Raleigh, North Carolina 27699 1612.919-707-92001 FAX [phone]
512 North Salisbury Street, Raleigh North Carolina 27604 - Internet http !!portal ncdenr org/webhrl
An Equal Opportunity 1 Affirmative Action Employer— 50% Recycled 110% Post Consumer Paper

a
STATE OF NORTH CAROLINA
DEPARTMENT OF ENVIRONMENT AND NATURAL RESOURCES
DIVISION OF ENERGY, MINERAL, AND LAND RESOURCES
GENERAL PERMIT NO NCG210000
CERTIFICATE OF COVERAGE No NCG210197
STORMWATER DISCHARGES
NATIONAL POLLUTANT DISCHARGE ELIMINATION SYSTEM
In compliance with the provision of North Carolina General Statute 143-215 1, other lawful
standards and regulations promulgated and adopted by the North Carolina Environmental
Management Commission, and the Federal Water Pollution Control Act, as amended,
Canton Sawmill LLC
is hereby authorized to discharge stormwater from a facility located at
Canton Sawmill LLC
5373 Thickety Road
Canton
Haywood County
to receiving waters designated as Murray Branch, a class C water in the French Broad River
Basin, in accordance with the effluent limitations, monitoring requirements, and other conditions
set forth in Parts I, 11, I11, and IV of General Permit No NCG210000 as attached
This certificate of coverage shall become effective May 14, 2014
This Certificate of Coverage shall remain in effect for the duration of the General Permit
Signed this day May 14, 2014
for Tracy E Davis, P E , Director
Division of Energy, Mineral, and Land Resources
By the Authority of the Environmental Management Commission

-� �Gp;NTON
• r :
'• Box 1463,Canton
To Division of Water Quality, NCDNR
From Susan Fletcher, Canton Sawmill LLC
Re Stormwater Permit Renewal, #NCG210197
Date 2 May 2013
Enclosed please find a Permit Name/Owner slip Change Im m request for the ibox'e-
lasted Certificate number
Canton Sawmill LLC has been leasing the property from Canton Hardwood
Company, Inc for the past two years We are currently in negotiations to purchase
the land and business operations, but do not have the legal documents to present at
this moment in time As soon as the real estate closing has occurred, we will remit
the proper paperwork to your office as requested
We want to comply within the timeframe of renewal, set to expire July 31',1, 2013
and simply wanted to inform your office of the transitions underway
Please contact me with questions or concerns at 828-508-1250
Thank you
Respectfully submitted,
Susan Fletcher
Member/Manager
Canton Sawmill LLC

AF
W
x,A
NCDENR
North Carolina Department of Environment and Natura
Division of Water Quality
Pat McCrory Charles Waktld, P E
Governor Director
April 29, 2013
Attn Gerald Powell
Canton Hardwood Company Inc
5373 Thickety Rd
Canton, NC 28716
Subject NPDES Industrial Stormwater Permit Renewal
Certificate of Coverage 4NCG210197
Dear Permittee
Resources
John Skvarla
Secretary
We have previously sent to you a postcard regarding the expiration of your facility's industrial
stormwater permit, which will expire on July 31, 2013 The postcard included ►reformation about the
Division of Water Quality's online permit renewal process, as well as a website address for completing
the renewal form
To assure continued industrial stormwater permit coverage of your facility, please visit
www sw ermits nc gov within the next seven days to complete the online renewal process To
complete the online form, you will need your facility's certificate of coverage number which is shown
above in the subject line of this letter
Discharge of stormwater without coverage under a valid stormwater NPDES permit constitutes a
violation of N C General Statute 143-215 1 and may result m the assessment of civil penalties of up to
$25,000 per day
If you are unable to complete the online permit renewal process, please contact the Division of Water
Quality Stormwater Perm►ttmg Unit at 919-807-6300
Sincerely,
Bradley Bennett, Supervisor
Stormwater Permitting Unit
Cc Central Files
SPU Files
Wetlands and Stormwater Branch
1617 Mad Service Center Raleigh North Carolina 27699 1617
Location 512 N Salisbury St Rafetgh North Carolina 27604
Phone [phone] FAX [phone] Customer Service 1 877-623-6748
Internet www ncwaterqualay org
An Equal Opportunity %Affirmative Action Employer
None
rthCarohna
�atura!!Y

VN
a Division of Water Quality 1 Surface Water Protection
�AMI;Emu National Pollutant Discharge Elimination System
R
U.�` ""'"`" ° PERMIT NAME/OWNERSHIP CHANGE FORM
FOR AGENCY USE ONLY
Date Received
Year
Month
Day
I Please enter the permit number for which the change is requested
NPDES Permit (or) Certificate of Coverage
ININ1,11 1 10 11 IS 171
II Permit status prior to requested change
a Permit tssued to (company name) C, A rrso IJ HA RdW Q'3 0 COAAN N I I W,
b Person legally responsible for permit (? 1;, IZAL 0 Pow E 4I-
First Ml L ist
IF-EASJ Ae P-
Title
p� �39>'c Hoag
Permit Holder Mailing Address
CArV (_0. . of C. a f -716
City St ite Zip
( F2t? ) 64rr- f-t4'- ) 6'iF- b966
Phone 1~ax
c Facility name (discharge) ('.AMEN MAjZ90 v -10 CQ Y1-P,Ar4q IN(,
d Facility address t{ CF(hM�i ;,,�1 Qxt V i ^^
Address
iV J4 G -,1 177 i (►
City StatL Zip
e Facility contact person 6 FRALa F9yile L- (fxg } 56[ -;L0.0
First 1 MI I Last Phone
III Please proFide the following for the requested change (revised permit)
a Request for change is a result of Change in ownership of the facility
Name change of the facility of owner
If other please explain
b Permit issued to (company name) C 4 r4l o rJ S.A%J /K- L k LL C.. _
c Person legally responsible for pernut _ _ �Sj � ArJ D E 1-E E CH E /:Z-
First MI Last
MEmL,?IF Z 4-,ArJA6 atZ _
Title
Permit Holder Mailing Address
Ch IN N NC a F171
City St ite Zip
Phone rm it Address W
d Facility name (discharge) C &r4T0N 57AV4M1 LL 1-1. C
e Facility address _ - 7 -7.3 -ry I CAFT Y tZO A D R
Address
City State. Zip
f Facility contact person YV SA 14 D _... _.,rLF_ ( CK ER
First MI Last
Phone 'rE- ail Address
Revised 2012Apr23

NPDES PERMIT NAME/OWNERSHIP CHANGE FORM
Page 2 of 2
IV Permit contact information (if different from the person legally responsible for thex+Cerm"t�F-IZ)`
40
Permit contact cStisA w I?N LF H /yl�
t nt Ml Last
n1RIKG1=)Z MANA 6 ER
title
V
VI
/ Mailing Address
City State Zip 1
Prone E L ail AddrA
Will the permitted facility continue to conduct the same industrial actin ities conducted prior
to this ownership or name change9
[ Yes
❑ No (please explain)
Required Items THIS APPLICATION WILL 13E RETURNED UNPROCESSED IF ITEMS
ARE INCOMPLETE OR MISSING
❑ This completed application is required for both name change and/or ownership change
requests
® Legal documentation of the transfer of ownership (such as relevant pages of a contract deed,
or a bill of sale) is required for an ownership change request Articles of incorporation are
not sufficient for an ownership change
The certifications below must be completed and signed by both the permit holder prior to the change, and
the new applicant in the case of an ownership change request For a name change request, the signed
Applicant's Certification is sufficient
PERMITTEE CERTIFICATION (Permit holder prior to ownership change)
1, —(jP , attest that this application for a name/ownership change has been reviewed and is accurate and
complete to the best of my knowledge I understand that if all i equired parts of this application are not
completed and that it all required supporting information is not included this application package will be
returned as incomp to
Signature Date
APPLICANT CERTIFICATION
I, SK , attest that this application for a name/ownership change has been reviewed and is accurate and
complete to the best of my knowledge I understand that if all required parts of this application are not
completed and that if all required supporting information is not included this application package will be
returned as incomplete
Signature Date
PLEASE SEND THE COMPLETE APPLICATION PACKAGE TO
Division of Water Quality
Surface Water Protection Section
1617 Mail Service Center
Raleigh, North Carolina 27699-1617
Revised 7/2008

�C-ANTO.N�
May6,2014
Ms Julie Ventaloro
NCDENR
Stormwater Permit Program
1612 Mail Service Center
Raleigh, NC 27699-1612
Reference NCG210197
Dear Ms Ventaloro,
2014 w
ND WA STggdl�,; n k
ER&%CN
Enclosed please find materials pertaining to Canton Sawmill LLC, and the transition
of ownership We are "leasing to own" the property from Sea-Nic Enterprises Inc,
an entity that purchased the property in June of 2013 from Ferguson Forest
Products
We have on file a complete Stormwater Pollution Prevention Plan (SWP3) in our
main office and plan to continue being good stewards of this property
Please contact me at the office with any questions or concerns at 828-492-071S
Thank you
Regards,
Susan Fletcher
Canton Sawmill LLC
Member/Manager

Letter of Understanding
This letter is formal notice of the intention of Sea-Nic Enterprises, Inc , a North Carolina
Corporation, and Canton Sawmill, LLC, A North Carolina Limited Liability Company, to enter into
an agreement whereby upon payment in full of all the indebtedness owed by Canton Sawmill,
LLC to Sea-Nic Enterprises, Inc for the property , improvements and equipment located at 649
Champion Drive in Canton, NC, that at that time, Canton Sawmill, LLC shall have the right to
purchase the real estate, improvements and equipment at said location for the sum of one
dollar and other good and valuable consideration
A document outlining the terms and ccnditions of the agreement shall be drafted and
executed by the parties aforementioned
Sea-Nic Enterprises, Inc
Title
Date -er — t -T
Canton Sawmill, LLC
By
Title G✓ r �'�
Date

STATE OF NORTH CAROLINA
COUNTY OF BUNCOMBE
LEASE AGREEMENT
THIS LEASE made and entered into this 17th day of .tune, 2013, by and between SEA-NIC
ENTERPRISES, INC, a North Carolina Corporation, hereinafter sometimes referred to as
"Lessor" and CANTON SAWMILL, LLC, a North Carolina Limited Liability Corporation,
hereinafter sometimes referred to as "Lessee"
WITNESSETH
THAT the Lessor, in consideration of the rents and covenants hereinafter specified to be paid
and performed by Lessee, hereby leases to Lessee, and the Lessee hereby rents from Lessor,
the premises hereinafter described, upon the terms and conditions herein set forth,
ARTICLE I
LEASED PREMISES AND IMPROVEMENTS
Sec 101 Ownership
The Lessor owns the tracts of land in Haywood County, North Carolina, located at 649
Champion Drive, Canton, NC, 28716, together with the buildings and improvements located
thereon These tracts and improvements being identified in the Haywood County Tax
Department as parcels 8657-48-1213, 8657-47-2814, 8657-47-6937, and 8657-47-7616
Sec 102 Lease of Premises
Lessor hereby rents and leases unto Lessee, and Lessee hereby takes and hires from
Lessor all of the property and permanently affixed improvements and fixtures above identified in
Sec 101
ARTICLE 11
TERM OF LEASE
Sec 201 Term
A The initial term of this Lease shall be for a period of FIVE (5) years and FOURTY
FOUR (44) days, commencing on June 17, 2013 and extending to July 31, 2018
B This Lease will be extended for three (3) additional FIVE (5) year terms following
the initial term with the final FIVE (5) year term ending July 31, 2033

Sec 303 Property Insurance
A Lessee shall carry fire, windstorm and extended coverage insurance on all
buildings and improvements erected on the leased premises to the extent of the full insurable
value of the buildings and improvements and pay the premiums promptly as the same become
due Such insurance policies shall name the Lessor, Lessee and Mortgage Holder as insured
and Certificate of Insurance copies thereof shall be furnished to Lessor and Mortgage Holder
B In the event of loss or damage covered by the above -referenced to policies, any
proceeds received therefrom shall be used for rebuilding or repairing the improvements and for
no other purpose unless agreed to in writing by Lessor and Mortgage Holder See ARTICLE V,
Sec 501
Sec 304 Liability Insurance
A Lessee agrees to exonerate, save harmless, protect and indemnify the Lessor,
Mortgage Holder, and their successors and assigns from and against any and all losses
damages, claims, suits or actions, judgments and costs, which may arise or grow out of any
injury to or death or damage to property in any manner connected with its use and possession
of the leased premises or its use, maintenance and operation of its business conducted on the
leased premises, and not resulting in whole or in part from the negligence of the Lessor
B Lessee shall, at its own expense, provide and keep in force, comprehensive
general liability insurance in which Lessor and Mortgage Holders shall be named as additional
insured in amounts sufficient to protect the Lessee, Lessor, and Mortgage Holder from liability
for death, personal injury, or property damage Such policies shall cover the entire leased
premises, including parking areas and any sidewalks, streets and ways adjoining the leased
premises Said policies shall be issued by insurance companies in a form satisfactory to
Lessor, shall provide for at least thirty (30) days' notice to Lessor and Mortgage Holder before
cancellation and certificates thereof shall be delivered to Lessor and Mortgage Holder
Sec 305 Utility Charges and Fees
Lessee shall pay all charges for water, sewer, electricity, gas, telephone, stormwater
fees and other utility services or fees charged to the leased premises
ARTICLE IV
TITLE, CONDITION AND USE OF PREMISES
Sec 401 Use -- Compliance with Laws and Ordinances
A Lessor covenants that it is seized of the demised premises, has good right to
lease them and hereby warrants and agrees to defend the title thereto and to reimburse and
hold Lessee harmless from any loss by reason of any defect in title
B Lessee agrees to keep the premises at all times clean and sanitary and further
agrees that it will permit no offensive, unsanitary or objectionable conditions to exists on said
premises

B Lessee shall be responsible for the maintenance of the drives, sidewalk,
landscaping, improvements and parking areas around the leased premises
C Lessee shall be responsible for all other maintenance not herein identified as the
responsibility of the Lessor
ARTICLE V
DESTRUCTION OR CONDEMNATION
Sec 501 Fire — Damage — Restoration of Improvements
A In the event that any structure erected on the leased premises shall be
completely or partially destroyed by fire or other casualty, this lease shall not terminate but the
Lessee will use the proceeds of the insurance set forth in Sec 303 Above for the purpose of
repairing or replacing said structure or damage, unless the parties hereto otherwise agree in
writing In the event of fire or other casualty which renders a major portion of the facility
unusable to Lessee, rents shall not abate but continue and all other terms and conditions of this
Lease shall remain in full force and effect Lessee shall not delay beyond ninety (90) days
without prior written consent from Lessor in beginning repairs and shall use the insurance
proceeds which may be received under the provision of Sec 303 above, to promptly begin and
pursue repair or construction of the premises
Sec 502 Condemnation
It is mutually agreed that if at any time during the term of this Lease, or any extension
thereof, any of the premises covered by this Lease be taken by any Federal, State or Local
municipal authority then in the determination of the damages sustained by said taking,
recognition shall be given to (1) land value and future rental loss by reason of a partial or total
taking, (2) budding and improvement value as Lessor's and Lessee's interests therein may be,
and (3) Lessee's loss of use
All parties in interest shall join in agreeing to or contesting the amount of the
condemnation award or damage, and if the parties are unable to amicably settle and adjust the
division of said damages, then three (3) arbitrators shall be appointed, one by the Lessor herein,
one by the Lessee herein, and the third shall be appointed by the then Clerk of Superior Court
of Buncombe County, North Carolina, and the three (3) arbitrators, so selected shall determine
the proportionate share of the parties in interest in any recovery of damages for such taking If
the taking is so substantial that the portion remaining is no longer usable by the Lessee for the
purposed intended, then this Lease may, at the option of the Lessee, be terminated
Notwithstanding any such termination, however, Lessee shall still be entitled to its share of
condemnation proceeds for loss of use and property taken If any dispute arises as to whether
or not the taking renders the remaining portion unusable for the intended purposes, then such
dispute shall be determined by arbitrators to be selected in the manner aforesaid
ARTICLE VI
ASSIGNMENT — SUBLEASE — SALE -- FORECLOSURE

(4) Lessee shall make an assignment for the benefit of its creditors, then, in
any such event, Lessor shall have the right, at its election, at any time thereafter, while any such
default or condition continues, to re-enter and take complete and peaceable possession of the
leased premises, and any and all improvements then forming part of the leased premises, and
to declare the term of this lease ended Whereupon this lease and all the right, title and interest
of Lessee hereunder shall terminate and be of no further force or effect In the event of such
declaration, Lessor shall have the right to sue for and recover all rents and other sums,
including interest at the rate of 1 '/z% per month (18% per annum) on balances over thirty (30)
days past due, accrued up to the time of such termination, including damages arising out of any
breach on the part of the Lessee Lessor shall also have the right, without re-entering the
leased premises, or terminating this lease, to sue for and recover all rents and other sums,
including interest at the rate of 1 '/2% per month (18% per annum) on balances over 30 days
past due, and including damages, at any time and from time to time accruing hereunder
Lessor shall have a landlord's lien upon all fixtures, equipment and movables of Lessee
upon the premises for any sums due hereunder Lessor may detain Lessee's property for any
sums due hereunder
Sec 702 Cumulative Rights
No right or remedy herein conferred upon or reserved to Lessor is intended to be
exclusive of any other right or remedy herein or by law provided, but each shall be cumulative
and in addition to every other right or remedy given herein or now or hereafter existing at law or
in equity, or by Statute
Sec 703 Interest on Overdue Rent
Any installments of rent overdue for a period of more than ten (10) days shall bear
interest at 1 '/2% per month (18% per annum)
Sec 704 Other Remedies of Lessor
If the Lessee shall default in the performance of any covenant required to be performed
by it under this lease, Lessor may perform the same for the account and at the expense of the
Lessee, after first giving notice to Lessee of its intention to do so If Lessor at any time is
compelled to pay, or elects to pay, any sum of money, or do any act which will require the
payment of any sum of money, be reason of the failure of Lessee to comply with any provisions
hereof, or if Lessor is compelled to incur any expense, including reasonable counsel or attorney
fees instituting, prosecution or defending any action or proceeding instituted by reason of any
default of Lessee hereunder, the amount of such payments or expenses shall be paid by
Lessee to Lessor as additional rent on the next date following such payment or the incurring of
such expense upon which a regular monthly rental payment is due, together with interest at the
rate of 1 1/2% per month (18% per annum)
Sec 705 Effect of Waiver or Forbearance
No waiver by Lessor of any breach by Lessee of any of its obligations, agreements or
covenants hereunder shall be a waiver of any subsequent breach on any other obligation,
agreement of covenant, nor shall and forbearance by Lessor to seek a remedy for any breach
by Lessee be a waiver of its rights and remedies with respect to such or any subsequent
breach

Sec 805 Descriptive Headings
The descriptive headings of this agreement are inserted for convenience in reference
only and do not constitute a part of the agreement
Sec 806 Successors in Interest
This lease shall be binding on and shall inure to the benefit of the parties hereto and
their respective successors and assigns
Sec 807 Security
Lessee for itself, its successors and assigns, hereby grants to the Lessor a lien upon all
trade equipment, including any and all furniture, furnishings, trade fixtures, and personal
property which may be installed or placed on the premises during the term hereof in order to
secure the Lessor for the payment of all rentals accruing hereunder and further secur-ng the
Lessor for all other monetary obligations which Lessor may be required to pay in order to
preserve said property for any lien Lessee agrees that no trade equipment or fixtures shall be
removed from said property until the payment of all rentals and other monetary obligations for
which Lessee or its assigns may be liable, and the Lessee further agrees to keep all of such
trade equipment and fixtures free and clear of liens and encumbrances with the exception of
purchase money liens
IN WITNESS WHEREOF, SEA-NIC ENTERPRISES, INC and CANTON SAWMILL,
LLC have caused these presents to be signed in their corporate names by their President or
Member / Manager
SEA-NIC ENTERPRISES, INC
Karl N Koon, President
CANTON SAWMI LLC
by - 4 A14
John S Fletcher, Member / Manager

PERSONAL GUARANTY AGREEMENT
IN CONSIDERATION OF the sum of One Dollar ($1 00) and other sufficient consideration, receipt of which is hereby
acknowledged the undersigned or if more than one each of them ( Guarantor ) jointly and severally unconditionally
guarantees to Sea Nic Enterprises Inc a North Carolina corporation with their principal offices at Asheville NC and their
successors and assigns the payment of any obligations or part thereof of Canton Sawmill, LLC, 649 Champion Drive, Canton,
NC 28716 to Sea Nic Enterprises Inc whether such obligation now exists or is incurred hereafter and in whatever form it may
be evidenced
Guarantor agrees that any extensions of credit for the purchase of goods or services, leases or agreements or for any
other reason that Sea Nic Enterprises Inc has made or may hereafter make to Principal shall be considered made on the
strength of and in reliance upon this Guaranty Agreement No setoff counterclaim, reduction or diminution of any obligation or
any defense of any kind or nature (other than the defense of performance by Guarantor of its obligations hereunder) shall be
available hereunder to Guarantor against Sea Nic Enterprises Inc
At any time after an event of default which remains uncured any or all of Principal s obligations shall and Sea Nic
Enterprises Inc s option become (for the purposes of this Guaranty) immediately due and payable by the Guarantor Sea Nic
Enterprises, Inc shall have the right to proceed against Guarantor for the amount thereof without notice and without first
proceeding or taking action of any kind against Principal including demand for payment For the purposes of this Guaranty and
event of default is the happening of any one or more of the following a) the non payment when due of any obligation b) the
death dissolution or failure of the business of Principal or Guarantor c) the filing of any petition in bankruptcy by or against
Principal or Guarantor or d) any proceedings in bankruptcy including a claim made for disgorgement of any payment by a
trustee or debtor in possession under federal or state law
Guarantor hereby unconditionally waives as conditions precedent to the enforcement of the obligations of Guarantor
hereunder a) all notices of the goods and services sold or payments due under any leases or agreements by Sea Nic
Enterprises Inc with Principal b) all notices of defaults by Principal, c) all other notices and demands (including without
limitation notice of the acceptance of this Guaranty or of the intention to act in reliance hereon and of reliance hereon), d) all
notices which may be required by statute, rule of law or otherwise to preserve any rights against Guarantor hereunder, including
without limitation any demand proof or notice of nonpayment of any sums payable to Sea-Nic Enterprises, Inc by Principal and
notice of any failure on the part of Principal to perform and comply with any obligation of Principal to Sea Nic Enterprises Inc
e) any requirement of diligence f) any requirement to mitigate damages resulting from the occurrence and continuance of a
breach by Principal of any of its obligations to Sea Nic Enterprises Inc and g) any right or claim to reimbursement from Sea Nic
Enterprises Inc for monies paid by Guarantor pursuant to this Guaranty Agreement
Guarantor understands and agrees to reimburse Sea Nic Enterprises Inc for any and all attorneys fees, legal
expenses or other costs incurred by Sea Nic Enterprises Inc in enforcing the provisions of this Agreement
The invalidity of any one or more provisions of this Guaranty shall not affect the remaining provisions of this Guaranty
This Guaranty shall be binding on the successor and assigns of Guarantor and shall remain in full force and effect
This Guaranty shall not be released or modified by the death of Guarantor or of Principal or by the death of any partner
of either or the accession to any such partnership of any new partner
Executed at Ashev€Ile NC this day of 2013
Witnesses Guarantors
John S Fletcher
soc sec no
Address 649 Champion Drive P 0 Box 1463 Canton NC 28716
Susan D Fletcher
soc sec no
Address 649 Champion Drive P 0 Box 1463 Canton, NC 28716

CONTRACT FOR PURCHASE OF COMMERCIAL PROPERTY
THIS CONTRACT FOR PURCHASE OF COMMERCIAL PROPERTY (the
"Contract") is entered into as of the day of May, 2013 (the "Effective Date"), whereby
Sea-Nic Enterprises, Inc, a North Carolina corporation ("Buyer"), hereby offers to purchase,
and Ferguson Forest Products, LLC, a North Carolina limited liability company ("Seller"),
upon acceptance of said offer, agree to sell and convey all of that plot, piece or parcel of land
described in Paragraph 1 below, together with all appurtenances thereto and all improvements
and fixtures located thereon (the "Real Property"), and the personal property described in
Paragraph 2 below and as are listed on Exhibit A titled "Personal Property", attached hereto (the
Real Property and Personal Property being collectively referred to as the "Property"), upon the
following terms and conditions
1 REAL PROPERTY That certain parcel of real property located in the County of
Haywood, State of North Carolina, located at 649 Champion Drive in Waynesville, North
Carolina, as described in Book 782, Page 490, Haywood County Registry, having a Tax PIN of
8657-47-2814, 8657-47-7616, 8657-47-6937, and 8657-48-1213 The parties acknowledge there
is a sawmill currently operating on the Property (the "Sawmill")
2 PERSONAL PROPERTY AND INTANGIBLES The following items, if any, are
included in the Purchase Price free of liens furniture, fixtures, and other personal property and
equipment used in the operation of the Sawmill and identified on Exhibit A (the "Personal
Property"), fixtures, including any built-in appliances, light fixtures, ceiling fans, window and
door screens, storm windows, doors, awnings, antennas, burglar/fire/smoke alarms, energy
systems, outdoor plants and trees, storage buildings, mailboxes, and any items attached or
affixed to the Real Property The following property is excluded from the sale contemplated
herein, and shall be retained by Seller those items of personal property identified on Exhibit A
identified as titled "Exclusions" and attached hereto (collectively the "Excluded Assets")
3 PURCHASE PRICE The purchase price for the Property is Two Million Fifty Five
Thousand and Five Hundred no/100 Dollars ($2,055,500 00) (the "Purchase Price'), which
Purchase Price shall be paid as follows
(A) Two Million Fifty Five Thousand Five Hundred and no/100s dollars
($2,055,500 00), balance of the Purchase Price shall be paid to Seller in cash at Closing
(B) The allocation of the Purchase Price between the Real Property and the Personal
Property shall be as follows
Real Property $1,745,500 00
Personal Property $ 310,000 00
4 CONDITIONS PRECEDENT TO CLOSING The following shall be conditions
precedent to the performance of Buyer's obligations at Closing
R&S 1070969 1

A The Property must be in substantially the same or better condition at Closing as of
the date of this Contract, reasonable wear and tear accepted
B All Deeds of Trust, liens and other charges against the Property must be paid and
satisfied by Seller prior to or at Closing so that cancellation may be promptly obtained following
Closing Seller shall remain obligated to obtain any such cancellations following Closing
C Title to the Real Property must be delivered at Closing by a GENERAL
WARRANTY DEED from Seller, and must be fee simple marketable title, free of all
encumbrances except ad valorem taxes for the current year (prorated to midnight the day prior
to Closing), and easements of record as of the conclusion of the Inspection Period
D Title to the Personal Property must be delivered at Closing by a Bill of Sale from
Seller, and must be free and clear of all liens and encumbrances
E Seller shall terminate any and all existing leases on the Property effective
midnight on the day before Closing
F Buyer must be able to obtain financing in the amount of One Million Five
Hundred Forty Five Thousand Five Hundred and no/100 Dollars ($1,545,500 00), with one loan
for the Real Property being in the amount of $1,297,500 00 and a second loan for the Personal
Property being in the amount of $248,000 00
G Seller's representations and warranties remain true and correct and Seller fulfills
all of its covenants at all times during the term of this Contract and as of Closing
With the exception of those items to be performed immediately prior to Closing, the
above conditions shall be satisfied or waived within the Inspection Period Seller agrees to
reasonably cooperate with Buyer in satisfying these terms, at no cost to Seller
5 SELLER COOPERATION Sellers agrees, at no cost to Seller, to assist Buyer in
securing any State and Local licenses and permits necessary for the continuation of the operation
of the Sawmill located on the Real Property
6 INSPECTIONS Buyer shall have until June 7, 2013 (the "Inspection Period") to
conduct inspections of the Property and to conduct any other due diligence in order for Buyer to
determine if the Property is suitable for Buyer's intended use Without limiting the generality of
the foregoing, Buyer shall have the right to review and inspect all documents and/or agreements
affecting or related directly to the Property or the operation of the Sawmill, including a review of
the title to the Property and any liens or exceptions thereto Buyer assumes all responsibility for
the acts of Buyer, its agents or representatives in exercising its rights under this Section, and
agrees to indemnify, defend, and hold Seller harmless from any damages resulting therefrom
This indemnification obligation of Buyer shall survive the Closing or earlier termination of this
Contract Buyer shall, at Buyer's expense, promptly repair any damage to the Property caused by
Buyer's entry and on -site inspections If, prior to expiration of the Inspection Period, Buyer
ii&S 1070869

determines that the Property is unsuitable, in Buyer's sole discretion, then upon written notice
thereof to Seller, this Contract shall terminate, and neither party shall then have any further
obligations in connection with this Contract
7 SPECIAL ASSESSMENTS Seller warrants that there are no governmental special
assessments, either pending or confirmed, for sidewalk, paving, water, sewer or other
improvements on or adjoining the Real Property Seller shall pay all confirmed governmental
assessments, if any
8 PRORATIONS AND ADJUSTMENTS The following items shall be prorated and
either adjusted between the parties or paid at Closing
A Ad valorem taxes on the Property shall be prorated on a calendar year basis
through the date of Closing
B All late listing penalties, delinquent taxes, and discovery tax bills, if any, shall be
paid by Seller
9 CLOSING EXPENSES Seller shall pay for preparation of the Deed and all other
documents necessary to perform Seller's obligations under this Contract, real estate
commissions, and for excise tax (revenue stamps) required by law Buyer shall pay for recording
the Deed and recording of all instruments required to secure a loan on the Property Each parry
shall be responsible for all attorneys' fees incurred by such parry
10 EVIDENCE OF TITLE Seller agrees to use Seller's best efforts to deliver to Buyer as
soon as reasonably possible after the acceptance of this Contract, a copy of Seller's title
insurance policy Buyer may order a title commitment covering the title to the Property for at
least thirty (30) years prior to the date of this Contract If the commitment discloses any defects
in title (other than liens or encumbrances of a definite or ascertainable amount which may be
paid at Closing from the proceeds due Seller), Buyer shall notify Seller of such defects within
fifteen (15) days from the last execution of this Contract Seller shall have thirty (30) days to
cure such defects If Seller fails to cure such defects within said 30-day period, or such
additional time as set forth below, Buyer shall have the option of accepting the title to the
Property with such defects, or terminating this Contract If Seller elects to cure such defects, but
such defects cannot be cured prior to the Closing Date (as defined herein), the Closing Date shall
be extended until such cure is effected, if such cure can be effected within twenty (20) days from
Seller's notice of their intent to cure such defect Seller shall be required to satisfy, at or prior to
Closing, any encumbrances that may be satisfied by the payment of a fixed sum of money, such
as deeds of trust, mortgages, or statutory Dens
11 LABOR AND MATERIAL Seller shall furnish at Closing an affidavit and
indemnification agreement in form satisfactory to Buyer showing that all labor and materials, if
any, furnished to the Property within one hundred twenty (120) days prior to the date of Closing
have been paid for and agreeing to indemnify Buyer, Buyer's title company, and Buyer's lender,
if any, against all loss from any cause or claim arising therefrom
R&S 10708G9 1

12 ENVIRONMENTAL Seller represents and warrants that it has no actual knowledge of
the presence or disposal, except in accordance with applicable law, on the Real Property, of
hazardous or toxic waste or substances, which are defined as any material, waste, or substance
which is
A Listed in the United States Department of Transportation Hazardous Materials
Table (49 CFR172 101) or by the Environmental Protection Agency as a hazardous substance
(40 CFR Part 302 4),
B Petroleum,
C Polychlonnated Biphenyls,
D Designated as a "Hazardous Substance" pursuant to Section 331 of the Clean
Water Act (33 U S C § 1251, et seq ) or pursuant to Section 307 of the Clean Water Act (33
USC§1371),
E Defined as a "Hazardous Waste" pursuant to Section 1004 of the Resource
Conservation and Recovery Act (42 U S C § 6903), or
F Defined as a "Hazardous Substance" pursuant to Section 101 of the
Comprehensive Environmental Response, Compensation and Liability Act (42 U S C § 9601, et
seq )
Further, Seller has no actual knowledge of any contamination of the Real Property from
such substances as may have been disposed of or stored on neighboring tracts
The representations and warranties contained in this Section shall survive Closing for a
period of one (1) year thereafter
13 EQUIPMENT AND POSSESSION Seller warrants that at the Closing Date all
equipment and other Personal Property will be in substantially the same or better condition at
Closing as of the date of this Contract, reasonable wear and tear excepted Possession of the
Sawmill and other improvements located on the Real Property shall be delivered at Closing
14 CLOSING All parties agree to execute any and all documents and papers necessary in
connection with Closing and transfer of title on or before June 17, 2013 (the "Closing Date"), at
the office of Buyer's counsel Closing shall be defined as the date and time of recording of the
Deed, provided that all pro -rations and adjustments shall be effective as of midnight on the day
preceding the Closing Date The Deed is to be made to Buyer or as Buyer directs
15 RISK OF LOSS AND EMINENT DOMAIN
A The risk of loss or damage by fire or other casualty prior to Closing shall be upon
Seller If the improvements on the Real Property are destroyed or materially damaged prior to
Closing, Buyer may terminate this Contract by written notice delivered to Seller or Seller's agent
R&S 1070869 1

and all Earnest Money shall be returned to Buyer In the event Buyer does NOT elect to
terminate this Contract, Buyer shall be entitled to receive, in addition to the Property, upon
payment of the Purchase Price in full, all of Seller's insurance proceeds payable on account of
the damage or destruction applicable to the Property
B If prior to Closing, the improvements located on the Real Property, or any part of
the Real Property, shall be taken or condemned for any public or quasi public use or purpose, or
conveyed under threat of such condemnation, Buyer shall have the right to either (i) terminate
this Contract, or (u) proceed to Closing, in which case all awards made by the condemning
authority shall be assigned by Seller to Buyer
16 NOTICE All notices and other communications which may be or are required to be
given or made by any party to the other in connection herewith shall be in writing and shall be
deemed to have been received on the date delivered in person or deposited in the United States
Mail, registered or certified, return receipt requested, or by a nationally recognized overnight
courier, to the following addresses, or to such other addresses as specified by written notice
delivered in accordance herewith
If to Seller Ferguson Forest Products, LLC
71 Beaverdam Road
Candler, North Carolina 28715
Attn Jack Ray Ferguson
With a copy to Cynthia W Eller
Van Winkle Law Firm
11 North Market Street (28801)
Post Office Box 7376
Asheville, North Carolina 28802
If to Buyer Sea-Nic Enterprises, Inc
4 Fairview Road
P O Box 5377
Asheville, North Carolina 28813-5377
Attn Karl N Koon
With a copy to Rebecca J Reinhardt
Roberts & Stevens, P A
P O Box 7647
Asheville, NC 28802
17 ADVERSE INFORMATION AND COMPLIANCE WITH LAWS
A Seller has no knowledge of (i) any condemnation or assessment affecting or
contemplated with respect to the Real Property, (n) actions, suits or proceedings pending or
R&S 1070869 1

threatened against the Real Property, or (iii) changes contemplated in the applicable laws,
ordinances or restrictions affecting the Real Property
B To the best of Seller's knowledge, Seller has complied with all applicable laws,
ordinances, regulations, statutes, rules and restrictions pertaining to or affecting the Property
Seller's performance of this Contract will not result in the breach of, constitute a default under,
or result in the imposition of any lien or encumbrance upon the Property under any agreement or
other instrument to which Seller is a party or by which Seller or the Property is bound and there
are no legal actions, suits or other legal or administrative proceedings pending or to the
knowledge of Seller, threatened against the Property and Seller is not aware of any facts which
might result in any such action, suit or other proceeding
18 INTENTIONALLY DELETED
19 APPLICABLE LAW This Contract shall be construed in accordance with the laws of
the State of North Carolina
20 ASSIGNMENTS This Contract may not be assigned by Buyer without Seller's written
approval, which approval shall not be unreasonably withheld
21 SELLER WARRANTIES Seller hereby warrants to Buyer, as of the date of this
Contract and as of the Closing Date, the following
A Seller is vested with good, marketable, fee simple title to the Property,
B Seller has the full right and authority to sell the Property,
C There are no actions, suits or proceedings pending or threatened before any
judicial body or by any governmental or quasi -governmental authority against or affecting the
Property,
D It has received no written notice of any filed or unfiled mechanics' or
materialmen's liens against the Property,
E There are no applicable zoning laws, Deed restrictions, or other covenants,
restrictions, agreements, liens, or encumbrances affecting the Real Property which would be
violated or restrict the occupancy, if any, and use of the Real Property by Buyer as a Sawmill,
F There are no agreements currently in effect which restnct the sale of the Property,
G Seller is a limited liability company duly formed, validly existing, and in good
standing under the laws of the State of North Carolina and has full power and authority to own or
use the Property,
H Seller has full power and authority to execute and deliver this Contract and all
other agreements, certificates, and documents executed or to be executed by Seller in connection
R&s 1070869 1

herewith, to consummate the transactions contemplated hereby and thereby and to perform its
obligations hereunder and thereunder,
I This Contract and all other agreements, certificates and documents executed or to
be executed by Seller in connection herewith, constitute or, when executed and delivered will
constitute, legal, valid and binding agreements of Seller enforceable against Seller in accordance
with their respective terms,
3 The execution and delivery of this Contract, the consummation of the transactions
contemplated by this Contract and compliance with the provisions hereof do not and will not (1)
conflict with or violate any of the provisions of Seller's formation documents or company
agreements, (ii) conflict with or violate any law, ordinance, rule or regulation or any judgment,
order writ, injunction or decree or similar commend of any court, administrative or governmental
agency or other body applicable to Seller or the Property, or (m) require the consent,
authorization or approval of, or notice to, or filing or registration with, any governmental body or
authority, or any other third party, and
K Other than those items to be prorated at Closing, Seller has paid all applicable
taxes and other fees and costs due to any governmental authority related to the Property and the
operation of the Sawmill
22 PARTIES This Contract shall be binding upon and inure to the benefit of the parties,
and their heirs, successors and assigns As used herein, words in the singular include the plural
and the masculine includes the feminine and neuter genders, as appropriate
23 SURVIVAL If any provision of this Contract which, by its nature and effect, is
required to be observed, kept or performed after the Closing, it shall survive the Closing and
remain binding upon and for the benefit of the parties hereto until fully observed, kept or
performed
24 ENTIRE AGREEMENT This Contract contains the entire agreement of the parties
and there are no representations, inducements or other provisions other than those expressed
herein All changes, additions or deletions hereto must be in writing and signed by all parties
25 EXECUTION This offer shall become a binding contract when signed by both Buyer
and Seller This Contract may be signed in multiple originals, all of which together shall
constitute one and the same instrument, with the signed original being retained by each parry
26 CONSTRUCTION The parties agree that this Contract has been negotiated in an arm's
length transaction, and the provisions set forth herein are not to be construed against the party
who drafted this Contract
27 TIME IS OF THE ESSENCE Time is of the essence with respect to all matters set
forth in this Contract
R&S 1070869 1

IN WITNESS WHEREOF, the parties hereto have caused this Contract to be executed
in their names, by their proper officers, representatives or agent thereto duly authorized, as of the
day and year set forth below
BUYER
Sea-Nic Enterprises, Inc
SELLER
Ferguson Forest Products, LLC
By (SEAL) By
Name
Title
Date
.hack Ray Ferguson
Member -Manager
Date
SEAL
R&s 1070869 1

EXHIBIT A
Personal Property
4-Sll dry kilns installed on the North side property located at 5373 Thickety Road, Canton, North
Carolina (the Property' ) «hich includes all of the equipment described on the attached description page
1- Winston Machinery Lumber Grading Line installed in building on North boundary of the Property
9- Lumber Carts used in conjunction with the grading line
R&S 1070969 1

Canton Sawmill LLC -- EXHIBIT A
--1992 Kenworth Tn-axle dump truck with 3306 Caterpillar engine, 9 speed transmission
with roll-over tarp, 16' bed -- VIN 2NKDL49X2NM577748
--1991 Ford tandem axle dump truck with Cat diesel engine, Road Ranger RT — 66 13
speed transmission, 21' bed with roll-over tarp -- V1N 1FDTW80U6BV318071
--Single-bunk log trailer — NCX 69930
--John Deere 644E Articulating Wheel Loader SIN 530261 with enclosed cab, slip on
bucker with log forks and clamp, 20 5 X 25 rubber tires — VIN DW644ED530261
SAWMILL
--Fulghum Tosser head debarker with 4' X 5' control cab and 50 HP motor
-40' 3 strand heavy-duty log deck with drive
--50' endwise log conveyor with log stop and 3 arm log kickers with drive
--34' heavy-duty log deck with Al-11 chain, with drive& nose skid, 3 arm stop & loader
--McDonough 6' band head rig SIN 72-M123 with web wheel and off -bearing belt, with
weight strain and hydraulic operating hood with Toshiba 200 HP, 460 volt, 1175 RPM
motor
--1998 Cleereman 48" 3 head block carnage, Model LP48-640 with linear positioner,
with silvatech scanner system and silvatech controller, 49" X 66" control cab, with laser
light system and FSC hydraulic power pack
--8" air -operated slab drop
--Sering bar type log loader with 30HP hydraulic power pack
--18" X 34" heavy-duty rollcase with 8" rolls with stop gate & air -operated lumber
kickers, 25'long
--24" X 40' rollcase with drive, stop gate, 9' 4 strand pop-up transfer with #78 rooftop
chain and drive
--Cornell 6" X 36" 2 saw edger with two moveable saws, with direct drive & 50 HP
motor, with 21' single belt tailing system & two line laser light system
--custom built 6'line bar re -saw system S/N 72M-186 with infeed belt, lumber belt, turn -
a -round system, with web wheel & 125HP, 440 volt, 1760 RPM motor with Racine 15
hydraulic power pack
--24" X 45' heavy-duty rollcase with outfeed
--9' 3 strand pop-up cant transfer with 81 X chain with drive
--24" X 20' return rollcase with 6" rolls
--20' 3 strand collector deck, with 2 strands 478 rooftop and 1 stand # 78
--25' lumber belt return system
--AV 5000 main disconnect, dry powder capacitor, 400 KVAR capacitor, 480 Volt, 480
amp with GE 1600 amp built-in main disconnect
--30' 4 strand collector deck with 3 strands 478 rooftop chain and i strand #79 chain
--Kancar 9 saw air -operated air-lift trimmer SIN 3428-29 with board infeed with transfer
and outfeed, 7 5 HP motor with 13' 6 strand declining deck with drive and #78 chain
--Hanchett size 413 right-hand band saw sharpener, SIN 189, with Armstrong #58-B
filing clamp with stand and dust removal system
--Ten extra saw bands for head rig and resaw
--Millermatic 200 wire feed welder SIN JK690171
--Armstrong stretcher roll with hammering blocks & work tables with support tools

--small vise and wort. table
--McDonough guide dresser, SIN BDM-397
--Morbark Mark IV table -type knife grinder system
--Tyrone Berry 285 hydraulic shotgun feed with Simonds 150 HP motor
--Eight portable heaters
--Kaeser 60 HP SIGMA profile DS60 screw -type air compressor with storage tank
--2004 Atlas Copo 50 HP air compressor with approx 6000 hours, type GX37,
SIN A11505092
--Sullair 25 HP tank mounted screw -type air compressor
--Fulghum 60" 6 knife chipper, model Fl-FIL-697 with horizontal feed & top discharge,
with 200 HP motor and controls, with Fulghum 7 X 7 chip screen with collector, with 9"
X 22' Fines belt conveyor
--Two 20" X 20' belt conveyors with 24" belts
--Custom built chip loading system with 30' incline chip conveyor, with steel supports &
drive, Webster 24" X 33' vibrating conveyor, Model FSH, with MDI metal detector,
SIN 05094590
--24" X 94' belt conveyor with drive
--10" X 125' belt conveyor with drive
--8" X 36' vibrating conveyor
--Webster 18" X 67' vibrating conveyor
--28" X 40' incline bark conveyor with #78 chain and steel drags
--65' incline bark conveyor with 14" X 20' custom-built bark loading system
--acetylene cart with torch and hose
--10" X 45' belt conveyor with drive
--Tanner de-Icer system
--Custom built rip saw with infeed and outfeed rolls & 30 HP motor
--Jet band saw, model WBS 14, SIN 4081046 with Dayton dust system
--Forestry Systems electronic end -tallying system
SAWMILL PARTS AND SUPPORT TOOLS
Spot fans, heaters, support tools
Chain hoist, spare belting
Pulling set for belts
Extra roller chains
Heavy-duty vise
Milwaukee side grinder
Support tools
Pulling set
Heavy-duty anvil
Air impacts
Bolt bins
C clamps
Clean-up tools
Cant hooks
Lincoln Idelarc 250 welder, SIN AC31167
Bolt bins and extra part bins
2

Kimball Midwest parts bins, with screws, key ways, pins
Extra sprockets
220 volt heaters
Welding rods
Extra saws for tiirnmer
Cylinders
New bearings
Chain hoist
Socket sets
Tap & die set
Snap -on too] box
Chipper parts
Spare motors
Gear drives
Air hoses
Shafts, Chemsearch parts washer
Pipe threader and cutter system
Pipe wrenches
Extra head for debarker
40' of new 978 roof -top chain
60' of new 978 roof -top chain
Cylinders, Steel work table with heavy-duty vise
Motors
Speedaire 5 HP upright tank -mounted air compressor
Miller Dialarc 250 AC/DC welder with leads
Five space heaters
Torch set, Side grinder, large impact wrench
Parts washer, floorjack, tire dolly, hand tools
Filters, Pedestal -type drill press with 2 HP motor
STACKER AND GRADING LINE
--8' 4 Arm tilting breakdown hoist with 30' 4 strand package deck
with stick removal system
--Three Heavy-duty stick racks
--15' 6 strand collector deck with 75' 4 strand green chain with 478 chain with bottom
return and with lumber crowder system
--Cable type lumber hoist
--32" X 30' 2 strand stick deck
--Speedaire 5 HP tank mounted air compressor
--Barrel trolley system
--Armspray end -coating system
--Nine all steel lumber roll -outs

COPY Ar
NC®ENR
North Carolina Department of Environment and Natural Resources
Division of Water Quality
Beverly Eaves Perdue Charles Wakdd, P E
Governor Director
May 2, 2012
Mr Jerry Powell
Canton Hardwood Company, Inc
P O Box 1028
Canton, NC 28716
SUBJECT NPDES Stormwater Permit Compliance Inspection
Canton Hardwood Company, Inc
Permit No NCG210197
Haywood County
Dear Mr Powell
Dee Freeman
Secretary
This letter is in follow-up to the NPDES Stormwater Permit Compliance Inspection conducted on
April 25, 2012 The facility was found to be in noncompliance with permit NCG210197
Enclosed is a copy of the Compliance Inspection Report, which contains additional observations
and comments for your reference
The Division of Water Quality (DWQ) will continue to work with you and your facility to ensure
future compliance As noted in the report, a Stormwater Pollution Prevention Plan should be
developed and/or updated, and semi-annual monitoring should begin prior to June 30, 2012
Please contact me at [phone] or Susan A WilsonCatncdenr goy, if I can be of any further
assistance
Sincerely,
'Susan A Wilson
Environmental Engineer
Surface Water Protection
Enclosures
Inspection Report
NCG210000
Technical Bulletin
Momtoring Form
cc Central Files
ARO Files
S 1SWP1Haywood\Stormwater\NCG21TimberNCanton Hardwood NCG2t019710Ef NCG210197 Canton Hardwood 4 20t2 doc
Location 2090 if S Highway 70 Swannanoa North Carolina 28778 One
Phone [phone] FAX [phone] Customer Service 1 877-623 6748 NorthCarolina
Intemet www ncwaterquahty org
naturally
An Equal OpOnrtunity 1 Affirmatve Achon Employer

Compliance Inspection Report
Permit NGG210197 Effective 08/01/08 Expiration 07/31/13 Owner Canton Hardwood Company Inc
SOC Effective Expiration Facility Canton Hardwood Company Inc
County Haywood Ha 5373 Thickety Rd
Region Asheville
Canton NC 28716
Contact Person Gerald W Powell Title VP Phone [phone]
Directions to Facility
System Classifications
Primary ORC Certification Phone
Secondary ORC(s)
On -Site Representative(s)
Related Permits
Inspection Date 04/25/2012 Entry Time 10 05 AM Exit Time 11 30 AM
Primary Inspector Susan A Wilson Phone [phone]
Secondary Inspector(s)
Timothy R Fox Phone
Reason for Inspection Routine Inspection Type Compliance Evaluation
Permit Inspection Type Timber Products Stormwater Discharge COC
Facility Status ❑ Compliant ■ Not Compliant
Question Areas
. Storm Water
(See attachment summary)
Page 1

Permit NCG210197 Owner Facility Canton Hardwood Company Inc
Inspection Date 04/25/2012 Inspection Type Compliance Evaluation Reason for Visit Routine
Inspection Summary
Susan Wilson and Tim Fox (DWQ) performed at site Inspection at Canton Hardwood Company on April 25 2012 Mr
Jerry Powell guided us around the site
There is evidence in the DWQ files that during the last inspection - the facility had the permit and applicable elements
(Stormwater Pollution Prevention Plan) At the time of this inspection - they could not be located
DWQ will continue to work with Mr Powell to bring the site into compliance We discussed the qualitative and analytical
monitoring as well as the facility site inspection and Stormwater Pollution Prevention Plan
As we discussed with Mr Powell at this time we will require Canton Hardwood to perform monitoring at the upstream
tributaries and at the downstream site at the end of the property This should give a good indication of any impacts from
the site (as the stream runs through the property) Most of the drainage eventually goes to the tributary through the
property (that is the only stormwater pathway)
A copy of the NGG21 General permit the Technical Bulletin and monitoring forms will be sent out with this inspection
report
Page 2

Permit NCG210197 Owner Facility Canton Hardwood Company Inc
Inspection Date 04/25/2012 Inspection Type Compliance Evaluation
Reason for visit
Routine
Stormwater Pollution Prevention Plan
Yes
No
NA
NE
Does the site have a Stormwater Pollution Prevention Plan?
n
■
n
n
# Does the Plan include a General Location (USGS) map?
Cl
■
n
n
# Does the Plan include a Narrative Description of Practices ?
n
■
n
n
# Does the Plan include a detailed site map including outfall locations and drainage areas?
n
■
n
n
# Does the Plan include a list of significant spills occurring during the past 3 years?
n
■
n
n
# Has the facility evaluated feasible alternatives to current practices?
n
■
n
n
# Does the facility provide all necessary secondary containment?
n
■
n
n
# Does the Plan include a BMP summary?
n
■
n
n
# Does the Plan include a Spill Prevention and Response Plan (SPRP)?
n
■
n
n
# Does the Plan include a Preventative Maintenance and Good Housekeeping Plan?
n
■
n
n
# Does the facility provide and document Employee Training?
n
■
n
n
# Does the Plan include a list of Responsible Party(s)?
n
■
n
n
# is the Plan reviewed and updated annually?
n
■
n
n
# Does the Plan include a Stormwater Facility Inspection Program?
n
■
n
n
Has the Stormwater Pollution Prevention Plan been implemented?
n
■
n
n
Comment At the time of the Inspection, the SWPPP could not be located However,
per Mr Powell they had recently moved offices - they believe they have It just couldn't
locate it on the Inspection day DWQ does have some records from the Inspection In
2006 that Indicates they had a plan at that time (had a site plan, emergency contacts,
etc )
DWQ will work with Canton Hardwood to ensure that they have an up to date
Stormwater Pollution Prevention Plan (which includes site layout and monitoring points,
etc )
Qualitative Monitoring Yes No NA NE
Has the facility conducted its Qualitative Monitoring semi-annually? n ■
Comment Qualitative monitoring could not be located
DWQ will work with Canton Hardwood to ensure that they are up to date with the
required qualitative monitoring
Analytical Monitoring Yes No NA NE
Has the facility conducted its Analytical monitonng? n ■ n n
# Has the facility conducted its Analytical monitoring from Vehicle Maintenance areas? ❑ ■ Q ❑
Page 3

1
Permit NCG210197 Owner Facility Canton Hardwood Company Inc
Inspection late 04/25/2012 Inspection Type Compliance Evaluation Reason for Visit Routine
Comment Analytical monitoring could not be located
DWQ will work with Canton Hardwood to ensure that the required analytical monitoring
will be conducted
Permit and Out -falls
# Is a copy of the Permit and the Certificate of Coverage available at the site?
# Were all outfalis observed during the inspection?
# If the facility has representative outfall status is it properly documented by the Division?
# Has the facility evaluated all illicit (non stormwater) discharges?
Comment Mr Powell did not have a copy of the Certificate of Coverage or the permit
at the time of inspection (and AROIDWQ does not have a copy in their files) DWQ will
ask Raleigh if there is an updated copy Regardless, Canton Hardwood is still covered
under NCG210197 and must comply with this stormwater permit
All potential outfalls were observed as we walked around the site
Yes No NA NE
0000
■nnn
nn■n
nnn■
Page 4

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F
k I tMiclael F Easley Governor
illiI-iRoss'3r 'Secretary
North Carolina Department of Environment and Natural Resources
Alan W Klimek P E Director
D4vssion of Water Quality
Asheville Regional Office
SURFACE WATER PROTECTION SECTION
October 6, 2006
Mr Gerald W Powell
Canton Hardwood Company Inc
PO Box 1028
Canton, NC 28716
SUBJECT Compliance Evaluation Inspection
Status Compliant
General Stormwater Permit
Canton Hardwood Company Inc
Permit number NCG210197
Haywood County
Dear Mr Powell
Enclosed please find a cc of the Stormwater Inspection form from the inspection
conducted on September_26, 2G by Wanda Frazier of the Asheville Regional Office The
facility was found to be in complir with permit NCG210197
Please refer to the enclosed inspection report for additional observations and comments
If you or your staff have any questions, please call me at 828-296-4500 extension 4662
Sincerely,
Wanda P Frazier
Environmental Specialist
Enclosure
cc Danny Smith, NIPS Assistance & Compliance Oversight
Wanda Frazier - ARO
ARO r Stormwater Compliance Files
Central Files
None
r hCarolina
,11rltura!!il
2090 U S Highway 70 Swannanoa NC 28778 Telephone [phone] Fax [phone] Customer Service 1 877 623 6748

United States Environmental Protection Agency
Form Approved
EPA Washington D C 20460
OMB No 2040 0057
Water Compliance Inspection Report
Approval expires 8 31 98
Section A National Data System Coding (I e PCS)
Transaction Code NPDES yrlmolday Inspection Type Inspector Fac Type
1 I NI 2 13I 31 tarG'1_10 111 121 /n9/ZC 117 181 11 191 1 al 20"
1
Remarks
211 1 1 1 1 1 1 1 1 1 1 1 .1 _1 1 1 1 1 1 1 1 1 1 1 1 1 1 1_ ._1_.1.1 1. 1 1 1 1 1 1 1 1 l l 1 I 1
_Lj6
Inspection Work Days Facility Self Monitormg Evaluation Rating 61 QA - —Reserved - -
671 1 0 169 701U 71 I I 72 r1I 73 _LJ j 74 751 1 I I I I I 180
Section B Facility Data
Name and Location of Facility Inspected (For lndustnal Users discharging to POTW also include
Entry Time/Date
Permit Effective Date
POTW name and NPDES permit Number)
10 OC >t 0j/05/2o
03/>>/Di
C'antcr Aardwoo❑ %atai, !-c
Exit Time/Date
Permit Expiration Date
R i
Carr^ rtC 2C'_C
11 PG Al G5/D4/?e
GEr:4 3t
Name(s) of Onsite Representative (s)/Titles(s)IPh one and Fax Number(s)
Other Facility Data
Name Address of Responsible OfriciaVT4IelPhone and Fax Number
Contacted
iera,ct iv Po4,ei PC Eo _C3.. CarT:cr 11C 2811c'. Pi628-CA9-2141/828 ,8'o3nF
Section C Areas Evaluated During Inspection (Check only those areas evaluated)
Storm Water
Section D Summary of Flndm /Comments Attach additional sheets of narrative and checklists as necessary)
(See attachment summary)
Name(s) and &gnature(s) of Inspector(s) Agency/Office/Phone and Fax Numbers Date
'4a da P Frazier la0 JQ, 1828-2y5-4500 Wrt 4662 /
l 7'
,;A
Signature of Management Q A Reviewer AgencylOffice/Phone and Fax Numbers Date
y y lD � 0 E
EPA Form 3560 3 (Rev 9 94) Previous editions are obsolete
Page # 1

0
NPDES yrlmo/day Inspection Type {cont }
33 [.G"ln 9- I11 121
rh 0
9/ 6 r 17 181 1
i� Section D Summary ofFindmg/Comments (Attach additional sheets of narrative and checklists as necessary)
The following Stormwater permit requirements appeared to be compliant
1 Implementation and documentation of required visual monitoring at all discharge points
(semi-annually)
2 Implementation and documentation of analytical monitoring at the discharge point from the vehicle
maintenance area is not required since the facility uses less than 55 gallons of oil a month
3 Implementation and documentation of employee training (annually)
4 Updated site map with all stormwater discharge outfalls identified
5 Stormwater Pollution Prevention Plan with Best Management practices
6 Certification of non-stormwater discharges
You provided an excellent Stormwater Pollution Prevention Plan and site map The time the Mr Jeff Powell
spent during the inspection and plant tour was greatly appreciated
Page # 2

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xxxx

IT POWELL JR PRESIDENT
J T POWELL III VICE PRESIDENT
J N POWELL JR SECRETARY TREASURER
P O BOX 1028
CANTON N C 28718
DIAL 828 648 3441
STORM WATER POLLUTION PREVENTION PLAN
CRITICAL INFORMATION
Emergency Contact Jerry Powell, work 828-648-3441
home 828-508-2002
Secondary Contact Jeff Powell, work 828-648-3452
home 828-226-2326
Emergency Response Contact Canton Fire Department, 828-646-3418
National Response Center
Toxic Chemical and Oil Spills, 800-424-8802
Type of Work Performed Lumber Manufacturing
Operating Schedule 7 00 am to 5 30 pm Monday —Thursday
7 00 am to 3 30 pm Friday
The facility employs approximately 45 people
No wastewater is discharged from this site
GENERAL PERMIT NO NCG210000
CERTIFICATE OF COVERAGE NO NCG210197
I