WQ0000088_Final Permit_20200325

ROY COOPER
Governor
MICHAEL S. REGAN
Secretary
S. DANIEL SMITH
Director
NORTH CAROLINA
Environmental Quality
March 25, 2020
MICHAEL A. MELTON — ENGINEERING MANAGER
AQUA NORTH CAROLINA, INC.
4163 SIINCLAIR STREET
DENVER, NORTH CAROLINA 28037
Subject: Permit No. WQ0000088
Governors Club WWTP
Reclaimed Water Generation and
Dedicated Utilization System
Chatham County
Dear Mr. Melton:
In accordance with your permit minor modification request received January 10, 2020, we are
forwarding herewith Permit No. WQ0000088 dated March 25, 2020, to Aqua North Carolina, Inc. for the
construction and operation of the permitted modifications, as well as the continued operation of the existing
reclaimed water generation and dedicated utilization facilities.
The following modifications to the subject permit are as follows: addition of a 27,000 gallon
digester to enable the rehabilitation of the existing digester.
This permit shall be effective from the date of issuance through July 31, 2023, shall void Permit
No. WQ0000088 issued August 23, 2018, and shall be subject to the conditions and limitations therein.
The Permittee shall submit a renewal application no later than February 1, 2023.
Please pay attention to the monitoring requirements listed Attachments A, B, and C for they may
differ from the previous permit issuance. Failure to establish an adequate system for collecting and
maintaining the required operational information shall result in future compliance problems.
The Division has removed the following permit condition since the last permit issuance dated
August 23, 2018:
➢ Old Condition VL2. — This condition has been removed because the permit is not voidable.
The following permit conditions are new since the last permit issuance dated August 23, 2018:
➢ Condition I.I. — 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 modifications have been
constructed in accordance with G.S. 143-215.1, Administrative Code Title 15A Subchapter
02U, this permit, and the Division -approved plans and specifications.
➢ Condition L2. — The Permittee shall notify the Raleigh Regional Office, telephone number
[phone], at least two business days in advance of initial operation of the constructed
facilities so that the Division can conduct a startup inspection.
North Carolina Department of Environmental Quality I Division of Water Resources
512 North Salisbury Street 1 1617 Mail Service Center I Raleigh, North Carolina 27699-1617
NORTH c ROLINA
OepartmeM of Environmental Quality /`� 919.707.9000

Mr. Michael A. Melton
March 25, 2020
Page 2 of 2
➢ Condition L3. —Prior to operation of the modified facilities, a Final Operation and Maintenance
Plan shall be submitted for review.
➢ Condition L4. — Within 180 days of permit issuance, the Permittee shall submit a permit
modification.
➢ Condition II.18. — Setbacks have changed to reflect rules in place at the time of permitting.
➢ Condition IIL 18 — Metering equipment shall be tested and calibrated annually.
➢ Condition II1.21. — Continuous online monitoring and recording for turbidity or particle count
and flow shall be provided prior to storage, distribution, or utilization of reclaimed water.
➢ Condition IIL22. — If turbidity exceeds 10 NTUs or if the permitted pathogen levels cannot be
met, all effluent shall be routed to the 1.5 MG 5-day upset pond until the problems associated
with the reclaimed water generation system have been corrected.
➢ Condition IV.8. — Pursuant to G.S. 143-215.1C(a), the Permittee shall provide to its users and
the Division of Water Resources an annual report summarizing the performance of the
reclaimed water generation and dedicated utilization 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.
➢ Condition IV.10.b. —The maintenance log shall include irrigation equipment calibration.
If any parts, requirements, or limitations contained in this permit are unacceptable, the Permittee
has the right to request an adjudicatory hearing upon written request within 30 days following receipt of
this permit. This request shall be in the form of a written petition, conforming to Chapter 150B of the North
Carolina General Statutes, and filed with the Office of Administrative Hearings at 6714 Mail Service
Center, Raleigh, NC 27699-6714. Otherwise, this permit shall be final and binding.
One set of approved plans and specifications is being forwarded to you. If you need additional
information concerning this permit, please contact Tessa Monday at [phone] or
to ssa.monday_&ncdenr. gov.
Sincerely,
S. Daniel Smith, Director
Division of Water Resources
cc: Chatham County Health Department (Electronic Copy)
Raleigh Regional Office, Water Quality Regional Operations Section (Electronic Copy)
Ben Clawson, PE — Municipal; Engineering Services Company, PA (Electronic Copy)
Laserfiche File (Electronic Copy)
Digital Permit Archive (Electronic Copy)
Central Files

NORTH CAROLINA
ENVIRONMENTAL MANAGEMENT COMMISSION
DEPARTMENT OF ENVIRONMENTAL QUALITY
RALEIGH
RECLAIMED WATER GENERATION AND DEDICATED UTILIZATION SYSTEM PERMIT
In accordance with the provisions of Article 21 of Chapter 143, General Statutes of North Carolina as
amended, and other applicable Laws, Rules, and Regulations
PERMISSION IS HEREBY GRANTED TO
Aqua North Carolina, Inc.
Chatham County
FOR THE
operation of a 300,000 gallon per day (GPD) reclaimed water generation and dedicated utilization facility
treating domestic and commercial wastewater generated by the following sources:
• All residences within the Governors Club Development;
• All facilities within the development owned by Governors Club, Inc.;
• All facilities within the development owned by Governors Club Property Owners Association, Inc.;
• The North Chatham Elementary School;
• The North Chatham High School;
• Two residential services for the Green family; and
• The office of Sandhills Grading & Pipe Corporation.
consisting of the:
construction and operation of a 27,000 gallon aerobic digester with two 130 gallon per minute (GPM)
submersible pumps; and all associated piping, valves, controls, and appurtenances; the
continued operation of Phases I and II (200,000 GPD total capacity) consisting of. a 60,000 gallon aerated
flow equalization tank (covered and with odor control system) with a 250 cubic foot per minute (CFM)
blower and two 175 gallon per minute (GPM) pumps; two 100,000 GPD extended aeration wastewater
treatment plants each consisting of a flow control and splitter box, aeration tanks totaling 150,000 gallons
in capacity with two 365 CFM blowers (an extra 365 CFM blower shall serve as a reserve for both plants),
multiple clarifier units with a total capacity of 20,830 gallons, a chlorination system with two tablet
chlorinators and a 3,125 gallon chlorine contact tank, a tertiary filtration unit with dual 35 square foot (ft)
filter cells (air scour for both units provided by a 140 CFM blower), a 5,250 gallon clearwell and two 535
GPM pumps, and a 5,950 gallon mudwell with two 175 GPM pumps; a 45,000 gallon aerated sludge holding
tank (aerated from main plant aeration system); and all associated piping, valves, controls, and
appurtenances; the
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continued operation of Phase III (100,000 GPD total capacity) consisting of a 30,000 gallon aerated flow
equalization tank (covered and with an odor control system) with a 100 CFM blower and two pumps; a
100,000 GPD extended aeration wastewater treatment plant, consisting of a flow control and splitter box,
aeration tanks totaling 150,000 gallons in capacity with three 325 CFM blowers (an extra 365 CFM blower
shall serve as a reserve for both plants), multiple clarifier units with a total capacity of 20,830 gallons, a
chlorination system with two tablet chlorinators and a 3,125 gallon chlorine contact tank, a tertiary filtration
unit with dual 35 W filter cells, a 70 CFM blower, a 5,250 gallon clearwell and two 525 GPM pumps, and
a 5,950 gallon mudwell with two 175 GPM pumps; a 15,000 gallon aerated sludge holding tank; and all
associated piping, valves, controls, and appurtenances; the
continued operation of. an ultraviolet (UV) disinfection system; continuous flow monitoring and recording
device; dosing chamber with two 280 GPM pumps to convey effluent to the 5-day detention pond or
irrigation pond; continuous turbidity monitoring and recording device; telemetry system; automatically -
activated backup generator system; and all associated piping, valves, controls, and appurtenances; the
continued operation of. a 1.5 million gallon (MG) 5-day detention pond; 15.5 MG irrigation pond; 15.0 MG
irrigation pond with two 570 GPM pumps to transfer reclaimed water to the other irrigation pond; and all
associated piping, valves, controls, and appurtenances; and the
continued operation of a 234,128 GPD reclaimed water irrigation system with a 195.68 acre spray irrigation
area; and all associated piping, valves, controls, and appurtenances
to serve the Governors Club WWTP, with no discharge of wastes to surface waters, pursuant to the
application received January 10, 2020, and in conformity with the Division -approved plans and
specifications considered a part of this permit.
This permit shall be effective from the date of issuance through July 31, 2023, shall void Permit No.
WQ0000088 issued August 23, 2018, and shall be subject to the following conditions and limitations:
I. SCHEDULES
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 modifications have been constructed in accordance with G.S. 143-215.1,
Administrative Code Title 15A Subchapter 02U, 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. Mail the Engineering Certification to the Division of Water
Resources, Non -Discharge Branch, 1617 Mail Service Center, Raleigh, NC 27699-1617, or Non-
Discharge.Reports ,ncdenr.gov. [15A NCAC 02T .0116(a)]
2. The Permittee shall notify the Raleigh Regional Office, telephone number [phone], at least two
business days in advance of initial operation of the constructed facilities so that the Division can
conduct a startup inspection. [15A NCAC 02T .0108(b)(1)(B)]
3. Prior to operation of the modified facilities, a Final Operation and Maintenance Plan shall be submitted
for review. The plan shall be sent to the Division of Water Resources, Non -Discharge Branch, 1617
Mail Service Center, Raleigh, NC 27699-1617 or Non-Discharge.Reports&ncdenr.gov. [15A NCAC
02T .0108(b)(1)(B), 02U .0801(a)]
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4. Within 180 days of permit issuance, the Permittee shall provide the following in a permit modification:
a. A setback waiver for the treatment facility (50 feet to property owned by Governors Club Inc)
pursuant to 15A NCAC 02U .0701(a).
b. An easement waiver for the Duke power lines for both storage ponds.
c. An easement for the irrigation fields filed with the Chatham County Register of Deeds that meets
the requirements of 15A NCAC 02L. 0107(f).
d. A scaled map showing the irrigation area wetted perimeter, parcel lines, surface waters, stormwater
structures (ditches, inlets, etc.) and groundwater wells. Identify the originally permitted 128 acres
of irrigation area.
[15A NCAC 02T .0108(b)(1)(B)]
5. The Permittee shall request renewal of this permit on Division -approved forms no later than February
1, 2023. [15A NCAC 02T .0105(b), 02T .0109]
II. PERFORMANCE STANDARDS
1. The Permittee shall maintain and operate the subject reclaimed water facilities so there is no discharge
to surface waters, nor any contravention of groundwater or surface water standards. In the event the
facilities fail to perform satisfactorily, including the creation of nuisance conditions due to improper
operation and maintenance, the Permittee shall take immediate corrective actions, including Division
required actions, such as the construction of additional or replacement reclaimed water generation and
utilization facilities. [15A NCAC 02T .0108(b)(1)(A)]
2. This permit shall not relieve the Permittee of their responsibility for damages to groundwater or surface
water resulting from the operation of this facility. [15A NCAC 02T .0108(b)(1)(A)]
3. Groundwater monitoring wells shall be constructed in accordance with 15A NCAC 02C .0108
(Standards of Construction for Wells Other than Water Supply), and any other jurisdictional laws and
regulations pertaining to well construction. [15A NCAC 02C .0108]
4. Effluent limitations for generated reclaimed water shall not exceed those specified in Attachment A.
[15A NCAC 02U .0301]
5. Application rates shall not exceed those specified in Attachment B. [15A NCAC 02U .0401(g)]
6. All reclaimed water valves, storage facilities, and outlets shall be tagged or labeled to warn the public
or employees that the water is not intended for drinking. [15A NCAC 02U .0403(b)]
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7. All reclaimed water piping, valves, outlets, and other appurtenances shall be color -coded, taped, or
otherwise marked to identify the source of the water as being reclaimed water as follows:
a. All reclaimed water piping and appurtenances shall be either colored purple (Pantone 522 or
equivalent) and embossed or integrally stamped or marked "CAUTION: RECLAIMED WATER -
DO NOT DRINK" or be installed with a purple (Pantone 522 or equivalent) identification tape or
polyethylene vinyl wrap. The warning shall be stamped on opposite sides of the pipe and repeated
every three feet or less;
b. Identification tape shall be at least three inches wide and have white or black lettering on purple
(Pantone 522 or equivalent) field stating "CAUTION: RECLAIMED WATER - DO NOT
DRINK". Identification tape shall be installed on top of reclaimed water pipelines, fastened at least
every 10 feet to each pipe length and run continuously the entire length of the pipe; and
c. Existing underground distribution systems retrofitted for the purpose of convey reclaimed water
shall be taped or otherwise identified as noted in IL7.a. and IL7.b. This identification need not
extend the entire length of the distribution system but shall be incorporated within 10 feet of
crossing any potable water supply line or sanitary sewer line.
[15A NCAC 02U .0403(c)]
8. All reclaimed water valves and outlets shall be of a type, or secured in a manner, that permits operation
by personnel authorized by the entity that operates the reclaimed water system. [15A NCAC 02U
.0403(d)]
9. Hose bibs shall be located in locked, below grade vaults that shall be labeled as being of non -potable
quality. As an alternative to the use of locked vaults with standard hose bib services, other locking
mechanisms such as hose bibs that can only be operated by a tool may be placed above ground and
labeled as non -potable water. [15A NCAC 02U .0403(e)]
10. There shall be no direct cross -connections between the reclaimed water and potable water systems,
unless such connection has been approved by the Department pursuant to 15A NCAC 18C .0406. [15A
NCAC 02U .0403(f)]
11. Reclaimed water distribution lines shall be located at least 5 feet horizontally from and 18 inches below
any water line if practicable. If these separation distances cannot be met, the piping and integrity testing
procedures shall meet water main standards in accordance with 15A NCAC 18C. [15A NCAC 02U
.0403(g), 02U .0403(h)]
12. Reclaimed water distribution lines shall not be less than 50 feet from a well unless the piping and
integrity testing procedures meet water main standards in accordance with 15A NCAC 18C, but in no
case shall they be less than 25 feet from a private well. [15A NCAC 02U .0403(g), 02U .0403(i)]
13. Reclaimed water distribution lines shall meet the separation distances to sewer lines in accordance with
15A NCAC 02T .0305. [15A NCAC 02U .0403(g), 02U .04030)]
14. Reclaimed water irrigation fields permitted prior to September 1, 2006 have compliance and review
boundaries established at the property boundary. Any exceedance of groundwater standards at or
beyond the compliance boundary shall require corrective action. Division -approved relocation of the
compliance boundary shall be noted in Attachment B. Multiple contiguous properties under common
ownership and permitted for use as a disposal system shall be treated as a single property with regard
to determination of a compliance boundary. [15A NCAC 02L .0106, 02T .0105(h), 02H
.0219(k)(1)(C)(1)(III), G.S. 143-215.1(1), G.S. 143-215.1(k)]
15. The Permittee shall apply for a permit modification to establish a new compliance boundary prior to
any sale or transfer of property affecting a compliance boundary (i.e., parcel subdivision). [ 15A NCAC
02L .0107(c)]
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16. No wells, excluding Division -approved monitoring wells, shall be constructed within the compliance
boundary except as provided for in 15A NCAC 02L .0107(g). [15A NCAC 02L .0107]
17. Except as provided for in 15A NCAC 02L .0107(g), the Permittee shall ensure any landowner who is
not the Permittee and owns land within the compliance boundary shall execute and file with the
Chatham County Register of Deeds an easement running with the land containing the following items:
a. A notice of the permit and number or other description as allowed in 15A NCAC 02L .0107(f)(1);
b. Prohibits construction and operation of water supply wells within the compliance boundary; and
c. Reserves the right of the Permittee or the State to enter the property within the compliance boundary
for purposes related to the permit.
The Director may terminate the easement when its purpose has been fulfilled or is no longer needed.
[15A NCAC 02L .0107(f)]
18. The facilities herein were permitted per the following setbacks:
a. The original irrigation sites of 128 acres were converted from wastewater irrigation to reclaimed
water irrigation on April 13, 1998. The remaining 67.68 acres of reclaimed water irrigation sites
were originally permitted June 2, 2000, July 30, 2004, and August 2, 2004. The setbacks for spray
irrigation sites originally permitted or modified from June 1, 1996 to August 31, 2006 are as follows
(all distances in feet):
i. Surface waters classified SA:
100
ii. Surface waters not classified SA:
25
iii. Each water supply well:
100
iv. Each non -potable well:
10
v. Each swimming pool:
25
[15A NCAC 02H .0219(k)(1)(C)(i)]
b. The storage and treatment units (300,000 GPD treatment plant, 5-day storage pond, and effluent
storage pond) were originally permitted October 4, 1988. The setbacks for storage and treatment
units originally permitted or modified from October 1, 1987 to January 31, 1993 are as follows (all
distances in feet):
i. Each habitable residence or place of assembly under separate ownership: 100'
ii. Each private or public water supply source: 100
iii. Each well with exception of monitoring wells: 100
iv. Each property line: 50 2
v. Nitrification field: 20
' Habitable residences or places of assembly under separate ownership constructed after the
facilities herein were originally permitted or subsequently modified 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.
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c. The storage and treatment units were originally permitted August 2, 2004. The setbacks for storage
and treatment units originally permitted or modified from June 1, 1996 to August 31, 2006 are as
follows (all distances in feet):
i. Each private or public water supply source:
100
ii. Surface waters:
50
iii. Each well with exception of monitoring wells:
100
iv. Each property line:
50 1
v. Nitrification field:
20
' 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.
d. The 27,000 gallon aerobic digester was originally permitted March 25, 2020. The setbacks for
storage and treatment units originally permitted or modified on or after September 1, 2018 are as
follows (all distances in feet):
i. Each habitable residence or place of assembly under separate ownership: 1001
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
' Habitable residences or places of assembly under separate ownership constructed after the
facilities herein were originally permitted or subsequently modified 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 02U .0701(b), 02U .0701(h), 02U .0701(i)]
III. OPERATION AND MAINTENANCE REQUIREMENTS
1. The Permittee shall operate and maintain the subject facilities as anon -discharge system. [15A NCAC
02U .0101]
2. The Permittee shall maintain an Operation and Maintenance Plan, which shall include:
a. A description of the operation of the system in detail to show what operations are necessary for the
system to function and by whom the operations are to be conducted;
b. A description of anticipated maintenance of the system;
c. Provisions for safety measures, including restriction of access to the site and equipment; and
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 02U .0801(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 their back-up shall operate and visit the facilities as required by the WPCSOCC. [15A NCAC 02T
.0117]
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4. An operator certified by the Water Pollution Control System Operators Certification Commission
(WPCSOCC) of a grade equivalent or greater than the facility classification shall be on call 24 hours
per day. [15A NCAC 02U .0401(e)]
5. The Permittee shall maintain vegetative cover on the irrigation sites, such that crop health is optimal,
allows even effluent distribution, and allows inspection of the irrigation system. [15A NCAC 02U
.0801(b)]
6. The Permittee shall take measures to prevent effluent ponding in or runoff from the irrigation sites
listed in Attachment B. [15A NCAC 02U .0801(c)]
7. 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 02U .0401(k)]
8. Irrigation equipment shall be tested and calibrated once per permit cycle. [15A NCAC 02U .0801(d)]
9. Only reclaimed water generated from the Governors Club WWTP shall be irrigated on the sites listed
m Attachment B. [15A NCAC 02U .0101]
10. The Permittee shall not allow vehicles or heavy machinery on the irrigation area, except during
equipment installation or maintenance activities. [15A NCAC 02U .0801(e)]
11. The Permittee shall prohibit public access to the wastewater treatment and storage facilities. [15A
NCAC 02U .0402(e)]
12. Public access to reclaimed water utilization sites shall be controlled during active site use. Such
controls may include the posting of signs showing the activities being conducted at each site. [15A
NCAC 02U .0501(a)(2)]
13. The Permittee shall dispose or utilize generated residuals in a Division -approved manner. [15A NCAC
02T .1100, 02U .0802].
14. The Permittee shall not divert or bypass untreated or partially treated reclaimed water from the subject
facilities. [15A NCAC 02U .0402(g)]
15. Freeboard in the 15.5 MG irrigation pond, 15 MG irrigation pond, and 1.5 MG 5-day upset pond shall
not be less than two feet at anytime. [15A NCAC 02U .0401(h)]
16. Gauges to monitor water levels in the 15.5 MG irrigation pond, 15 MG irrigation pond, and 1.5 MG 5-
day upset pond shall be provided. These gauges shall have readily visible permanent markings, at inch
or tenth of a foot increments, indicating the following elevations: maximum liquid level at the top of
the temporary liquid storage volume; minimum liquid level at the bottom of the temporary liquid
storage volume; and the lowest point on top of the dam. [15A NCAC 02U .0801(f)]
17. A protective vegetative cover shall be established and maintained on all berms, pipe runs, erosion
control areas, surface water diversions, and earthen embankments (i.e., outside toe of embankment to
maximum allowable temporary storage elevation on the inside of the embankment). Trees, shrubs, and
other woody vegetation shall not be allowed to grow on the earthen dikes or embankments. Earthen
embankments shall be kept mowed or otherwise controlled and accessible. [15A NCAC 02U .0801(g)]
18. Metering equipment shall be tested and calibrated annually. [15A NCAC 02U .0801(d)]
19. An automatically activated standby power source capable of powering all essential treatment units shall
be on site and operational at all times. If a generator is employed as an alternate power supply, it shall
be tested weekly by interrupting the primary power source. [15A NCAC 02U .0401(d)]
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20. Continuous online monitoring and recording for turbidity or particle count and flow shall be provided
prior to storage, distribution, or utilization of reclaimed water. [15A NCAC 02U .0401(b)]
21. If turbidity exceeds 10 NTUs or if the permitted pathogen levels cannot be met, all effluent shall be
routed to the 1.5 MG 5-day upset pond until the problems associated with the reclaimed water
generation system have been corrected. The water in the 1.5 MG 5-day upset pond shall be pumped
back to the treatment plant headworks for re -treatment or treated in the 1.5 MG 5-day upset pond prior
to utilization. [15A NCAC 02U .0402(d)]
22. The Permittee shall provide notification to the public and its employees about the use of reclaimed
water, and that reclaimed water is not intended for drinking. Such notification shall be provided to
employees in a language they can understand. [15A NCAC 02U .0501(a)(2)]
23. The Permittee shall develop and implement an education program to inform users and its employees
about the proper use of reclaimed water. Educational material shall be provided to all residents and/or
other facilities provided with reclaimed water, and these materials shall be maintained consistent with
the reclaimed water uses. All educational materials shall be made available to the Division upon
request. [15A NCAC 02U .0501(a)(4)]
24. Normal operation of the wastewater treatment facilities involves conveyance of reclaimed water from
the facilities to the five-day detention pond before being further conveyed to one of the irrigation ponds
of the reclaimed water utilization facilities. During periods of normal operation, the level of reclaimed
water in the five-day detention pond shall be kept low enough such that 862,500 gallons of effective
storage volume shall be maintained at all times.
If the wastewater treatment facilities develop an upset condition for fecal coliform (daily maximum
concentration of 25 per 100 ml) or turbidity (instantaneous maximum of 10 NTU) is exceeded, the
ORC, back-up ORC, or other on -duty operator shall terminate transfer of reclaimed water/wastewater
effluent from the five-day upset pond to the irrigation ponds, and all wastewater effluent shall be
conveyed directly to the five-day upset pond. Once the upset condition has been resolved, reclaimed
water shall be conveyed directly from the wastewater treatment facilities to the irrigation ponds.
Wastewater effluent stored in the five-day upset pond shall be conveyed to the headworks of the
wastewater treatment for re -treatment. Only after all wastewater effluent that is stored in the five-day
detention pond is successfully re -treated and meets the reclaimed water quality criteria in Attachment
A, shall normal operating procedures be resumed. [15A NCAC 02U .0402(e)]
IV. MONITORING AND REPORTING REQUIREMENTS
The Permittee shall conduct and report any Division required monitoring 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 effluent, groundwater, and
surface water parameters. [15A NCAC 02H .0800]
3. Flow through the treatment facility shall be continuously monitored, and daily flow values shall be
reported on Form NDMR. Facilities with a permitted flow less than 10,000 GPD may estimate their
flow from water usage records provided the water source is metered. [15A NCAC 02T .0105(k), 02T
.0108(c)]
4. The Permittee shall monitor the generated reclaimed water at the frequencies and locations for the
parameters specified in Attachment A. [15A NCAC 02T .0108(c)]
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5. The Permittee shall maintain records tracking the amount of reclaimed water irrigated. These records
shall include the following information for each irrigation site listed in Attachment B:
a. Date of irrigation;
b. Volume of reclaimed water irrigated;
c. Site irrigated;
d. Length of time site is irrigated;
e. Continuous weekly, monthly, and year-to-date hydraulic (inches/acre) loadings;
f. Continuous monthly and year-to-date loadings for any non -hydraulic parameter specifically
limited in Attachment B;
g. Weather conditions; and
h. Maintenance of cover crops.
[15A NCAC 02T .0108(c)]
6. Freeboard (i.e., water level to the lowest embankment elevation) in the 15.5 MG irrigation pond, 15
MG irrigation pond, and 1.5 MG 5-day upset pond shall be measured to the nearest inch or tenth of a
foot, and recorded weekly. Weekly freeboard records shall be maintained for five years, and shall be
made available to the Division upon request. [15A NCAC 02T .0108(c)]
7. Three copies of all monitoring data (as specified in Conditions IV.3. and IVA.) on Form NDMR for
each PPI and three copies of all operation and disposal records (as specified in Conditions IV.5. and
IV.6.) on Form NDAR-1 for every site in Attachment B shall be submitted on or before the last day of
the following month. If no activities occurred during the monitoring month, monitoring reports are still
required documenting the absence of the activity. All information shall be submitted to the following
address:
Division of Water Resources
Information Processing Unit
1617 Mail Service Center
Raleigh, North Carolina 27699-1617
[15A NCAC 02T .0105(1)]
8. Pursuant to G.S. 143-215.1C(a), the Permittee shall provide to its users and the Division of Water
Resources an annual report summarizing the performance of the reclaimed water generation and
dedicated utilization 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. This report shall be prepared
on either a calendar or fiscal year basis and shall be provided no later than 60 days after the end of the
calendar or fiscal year. Two copies of the annual report provided to the Permittee's users shall be
submitted to:
Division of Water Resources
Water Quality Permitting Section
1617 Mail Service Center
Raleigh, North Carolina 27699-1617
[G. S. 143-215. I C(a)]
9. The Permittee shall maintain a record of all residuals removed from this facility. This record shall be
maintained for five years, and shall be made available to the Division upon request. This record shall
include:
a. Name of the residuals hauler;
b. Non -Discharge permit number authorizing the residuals disposal, or a letter from a municipality
agreeing to accept the residuals;
c. Date the residuals were hauled; and
d. Volume of residuals removed.
[15A NCAC 02U .0802(b)]
WQ0000088 Version 4.1 Shell Version 200201 Page 9 of 13

10. A maintenance log shall be kept at this facility. This log shall be maintained for five years, and shall
be made available to the Division upon request. This log shall include:
a. Date of flow measurement device calibration;
b. Date of irrigation equipment calibration;
c. Date of turbidimeter calibration;
d. Date and results of power interruption testing on alternate power supply;
e. Visual observations of the plant and plant site; and
f. Record of preventative maintenance (e.g., changing of equipment, adjustments, testing, inspections
and cleanings, etc.); and
g. Record of all discharges of reclaimed water to surface waters or the land surface, including the date
of occurrence, estimated volume, and corrective action taken.
[15A NCAC 02U .0801(h)]
11. Monitoring wells MW-IA, MW-3A, MW-7, and MW-9 shall be sampled at the frequencies and for the
parameters specified in Attachment C. All mapping, well construction forms, well abandonment forms
and monitoring data shall refer to the permit number and the well nomenclature as provided in
Attachment C and Figure 1. [15A NCAC 02T .0105(m)]
12. Two copies of the monitoring well sampling and analysis results shall be submitted on a Compliance
Monitoring Form (GW-59), along with attached copies of laboratory analyses, on or before the last
working day of the month following the sampling month. The Compliance Monitoring Form (GW-59)
shall include this permit number, the appropriate well identification number, and one GW-59a
certification form shall be submitted with each set of sampling results. All information shall be
submitted to the following address:
Division of Water Resources
Information Processing Unit
1617 Mail Service Center
Raleigh, North Carolina 27699-1617
[15A NCAC 02T .0105(m)]
13. Noncompliance Notification:
The Permittee shall report to the Raleigh 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, etc.) rendering the facility incapable of
adequate wastewater treatment.
c. Any failure resulting in a discharge untreated or partially treated wastewater to surface waters.
d. Any failure resulting in a discharge of reclaimed water directly to surface waters or any unpermitted
release of reclaimed water to land surface greater than or equal to 5,000 gallons. Unpermitted
releases less than 5,000 gallons to land surface shall be documented by the Permittee in accordance
with Condition IV.l0.g. but do not require Regional Office notification.
e. Any time self -monitoring indicates the facility has gone out of compliance with its permit
limitations.
f. Ponding in or runoff from the irrigation sites.
Emergencies requiring reporting outside normal business hours shall call the Division's Emergency
Response personnel at telephone number [phone], [phone], or [phone]. All
noncompliance notifications shall file a written report to the Raleigh 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)]
WQ0000088 Version 4.1 Shell Version 200201 Page 10 of 13

V. INSPECTIONS
1. The Permittee shall perform inspections and maintenance to ensure proper operation of the reclaimed
water generation and utilization facilities. [15A NCAC 02U .0801(i)]
2. The Permittee shall inspect the reclaimed water generation and utilization 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 a period of five years
from the date of the inspection, and this log shall be made available to the Division upon request. [15A
NCAC 02U .0801(h), 02U .0801(i)]
Division authorized representatives may, upon presentation of credentials, enter and inspect any
property, premises, or place related to the reclaimed water generation and utilization facilities permitted
herein 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 groundwater, surface water, or leachate samples. [G.S. 143-215.3(a)(2)]
VI. GENERAL CONDITIONS
1. Failure to comply with the conditions and limitations contained herein may subject the Permittee to a
Division enforcement action. [G.S. 143-215.6A, 143-215.613, 143-215.6C]
2. This permit is effective only with respect to the nature and volume of wastes described in the permit
application, and Division -approved plans and specifications. [G.S. 143-215.1(d)]
3. Unless specifically requested and approved in this permit, there are no variances to administrative codes
or general statutes governing the construction or operation of the facilities permitted herein. [15A
NCAC 02T .0105(n)]
4. The issuance of 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 .0105(c)(6)]
5. If the permitted facilities change ownership, or the Pennittee changes their name, the Permittee shall
submit a permit modification request on Division -approved forms. The Permittee shall comply with
all terms and conditions of this permit until the permit is transferred to the successor -owner. [G.S. 143-
215.1(d3)]
6. The Permittee shall retain a set of Division -approved plans and specifications for the life of the facilities
permitted herein. [15A NCAC 02T .0105(o)]
7. The Permittee shall maintain this permit until the proper closure of all facilities permitted herein, or
until the facilities permitted herein are permitted by another authority. [15A NCAC 02T .01050)]
WQ0000088 Version 4.1 Shell Version 200201 Page 11 of 13

8. 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 Administrative Code Title 15A Subchapter
02U;
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 any records are required
to be kept;
ii. to have access to any permit required documents and records;
iii. to inspect any monitoring equipment or method as required in this permit; or
iv. to sample any pollutants;
d. the Permittee's failure to pay the annual fee for administering and compliance monitoring; or
e. a Division determination that the conditions of this permit are in conflict with North Carolina
Administrative Code or General Statutes.
[15A NCAC 02T .0110]
9. Unless the Division Director grants a variance, expansion of the facilities permitted herein 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 all appeals of this conviction have been abandoned or
exhausted.
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.
c. The Permittee or any parent, subsidiary, or other affiliate of the Permittee has not paid a civil
penalty, and all appeals of this penalty have been abandoned or exhausted.
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.
[15A NCAC 02T .0120(b), 02T .0120(d)]
10. This permit shall not be renewed if the Permittee or any affiliation has not paid the required annual fee.
[15A NCAC 02T .0120(c)]
Permit issued this the 25"' day of March 2020
NORTH CAROLINA ENVIRONMENTAL MANAGEMENT COMMISSION
S. Daniel Smith, Director
Division of Water Resources
By Authority of the Environmental Management Commission
Permit Number WQ0000088
WQ0000088 Version 4.1 Shell Version 200201 Page 12 of 13

Permit No. WQ0000088 Reclaimed Water Generation and Dedicated Utilization System
Aqua North Carolina, Inc. March 25, 2020
Governors Club WWTP Chatham County
ENGINEERING CERTIFICATION
❑ Partial ❑ Final
I, , as a duly licensed North Carolina Professional
Engineer, having ❑ periodically / ❑ fully observed the construction of the permitted facilities, 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 02U, 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 JEER
Email
Seal, Signature, and Date
THE COMPLETED ENGINEERING CERTIFICATION, INCLUDING ALL SUPPORTING
DOCUMENTATION, SHALL BE SENT TO THE FOLLOWING ADDRESS:
NORTH CAROLINA DEPARTMENT OF ENVIRONMENTAL QUALITY
DIVISION OF WATER RESOURCES
NON -DISCHARGE BRANCH
By U.S. Postal Service By Courier/Special DelivM
1617 MAIL SERVICE CENTER 512 N. SALISBURY ST.
RALEIGH, NORTH CAROLINA 27699-1617 RALEIGH, NORTH CAROLINA 27604
WQ0000088 Version 4.1 Shell Version 200201 Page 13 of 13

THIS PAGE BLANK

ATTACHMENT A — LIMITATIONS AND MONITORING REQUIREMENTS
PPI 001— Reclaimed Water Generation System Effluent
Permit Number: WQ0000088 Version: 4.1
EFFLUENT CHARACTERISTICS
EFFLUENT LIMITS
MONITORING REQUIREMENTS
PCS
Code
Parameter Description
Units of
Measure
Monthly Monthly
Average Geometric Mean Daily Minimum Daily Maximum
Measurement
Frequency
Sample
Type
00310
BOD, 5-Day (20 °C)
mg/L
10 15
2 x Month
Composite
00940
Chloride (as Cl)
mg/L
3 x Year 1
Composite
50060
Chlorine, Total Residual
mg/L
5 x Week
Grab
31616
Coliform, Fecal MF, M-FC Broth, 44.5 °C
#/100 mL
14 25
2 x Month
Grab
50050
Flow, in Conduit or thru Treatment Plant
GPD
234,128
Continuous
Recorder
00610
Nitrogen, Ammonia Total (as N)
mg/L
4 6
2 x Month
Composite
00625
Nitrogen, Kjeldahl, Total (as N)
mg/L
2 x Month
Composite
00620
Nitrogen, Nitrate Total (as N)
mg/L
2 x Month
Composite
00600
Nitrogen, Total (as N)
mg/L
2 x Month
Composite
00400
pH
su
5 x Week
Grab
00665
Phosphorus, Total (as P)
mg/L
2 x Month
Composite
70300
Solids, Total Dissolved —180 °C
mg/L
3 x Year'
Composite
00530
Solids, Total Suspended
mg/L
5 R
2 x Month
Composite
00076
Turbidity, HCH Turbidimeter
NTT
10
Continuous 2
Recorder
1. 3 x Year sampling shall be conducted in March, July, and November.
2. To ensure that the ORC, back-up ORC, or other on -duty operator has sufficient time to conduct manual operation of valves that are needed to prevent wastewater effluent from not meeting the
reclaimed water quality standards from being conveyed to the irrigation pond of the reclaimed water facilities, the set -point on the turbidimeter that triggers the alarm and initiates the telemetry
system shall be set at no higher than 6.0 NTU.
WQ0000088 Version 4.1 Attachment A Page 1 of 1

THIS PAGE BLANK

ATTACHMENT B - APPROVED DEDICATED LAND APPLICATION SITES
Aqua North Carolina, Inc. - Governors Club WWTP
Permit Number: WQ0000088 Version: 4.1
IRRIGATION AREA INFORMATION
APPLICATION LIMITATIONS
Field
Owner
County
Latitude
Longitude
Net
Acreage
Dominant
Soil Series
Parameter
Hourly
Rate
Yearly
Max
Units
1
Governors Club Inc.
Chatham
35.843333'
79.038889'
5.87
01284 -Non-Discharge Application Rate
0.40
16.09
inches
2
Governors Club Inc.
Chatham
35.840556'
79.041111'
9.08
01284 -Non-Discharge Application Rate
0.40
16.09
inches
3
Governors Club Inc.
Chatham
35.840278'
79.040278'
0.90
01284 - Non -Discharge Application Rate
0.40
16.09
inches
4
Governors Club Inc.
Chatham
35.837778'
79.038611'
6.40
01284 -Non-Discharge Application Rate
0.40
16.09
inches
5
Governors Club Inc.
Chatham
35.840556'
79.031944'
8.40
01284 -Non-Discharge Application Rate
0.40
16.09
inches
6
Governors Club Inc.
Chatham
35.842778'
79.033889'
7.14
01284 -Non-Discharge Application Rate
0.40
16.09
inches
7
Governors Club Inc.
Chatham
35.844444'
79.033333'
7.31
01284 - Non -Discharge Application Rate
0.40
16.09
inches
8
Governors Club Inc.
Chatham
35.847222'
79.033889'
7.38
01284 -Non-Discharge Application Rate
0.40
16.09
inches
9
Governors Club Inc.
Chatham
35.848889'
79.038611'
7.29
01284 -Non-Discharge Application Rate
0.40
16.09
inches
10
Governors Club Inc.
Chatham
35.850000'
79.034444'
5.56
01284 - Non -Discharge Application Rate
0.40
16.09
inches
11
Governors Club Inc.
Chatham
35.850833'
79.032500'
3.56
01284 - Non -Discharge Application Rate
0.40
16.09
inches
12
Governors Club Inc.
Chatham
35.851389'
79.033056'
2.59
01284 -Non-Discharge Application Rate
0.40
16.09
inches
13
Governors Club Inc.
Chatham
35.852778'
79.036111'
7.65
01284 - Non -Discharge Application Rate
0.40
16.09
inches
14
Governors Club Inc.
Chatham
35.850833'
79.039444'
2.90
01284 - Non -Discharge Application Rate
0.40
16.09
inches
15
Governors Club Inc.
Chatham
35.848056'
79.041667'
5.97
01284 - Non -Discharge Application Rate
0.40
16.09
inches
16
Governors Club Inc.
Chatham
35.843056'
79.041389'
8.34
01284 -Non-Discharge Application Rate
0.40
16.09
inches
17
Governors Club Inc.
Chatham
35.843611'
79.038889'
6.04
01284 -Non-Discharge Application Rate
0.40
16.09
inches
18
Governors Club Inc.
Chatham
35.845000'
79.039444'
10.81
01284 - Non -Discharge Application Rate
0.40
16.09
inches
19
Governors Club Inc.
Chatham
35.849444'
79.039722'
17.08
01284 - Non -Discharge Application Rate
0.40
16.09
inches
20
Governors Club Inc.
Chatham
35.848611'
79.045000'
3.80
01284 - Non -Discharge Application Rate
0.40
16.09
inches
21
Governors Club Inc.
Chatham
35.849444'
79.063889'
5.70
01284 -Non-Discharge Application Rate
0.40
16.09
inches
22
Governors Club Inc.
Chatham
35.853056'
79.050556'
6.00
01284 -Non-Discharge Application Rate
0.40
16.09
inches
23
Governors Club Inc.
Chatham
35.852222'
79.054167'
3.90
01284 - Non -Discharge Application Rate
0.40
16.09
inches
24
Governors Club Inc.
Chatham
35.849444'
79.058056'
4.20
01284 -Non-Discharge Application Rate
0.40
16.09
inches
WQ0000088 Version 4.1 Attachment B Page 1 of 2

25
Governors Club Inc.
Chatham
35.846944'
79.037222'
4.70
01284 -Non-Discharge Application Rate
0.40
16.09
inches
26
Governors Club Inc.
Chatham
35.846667'
79.047222'
5.70
01284 - Non -Discharge Application Rate
0.40
16.09
inches
27
Governors Club Inc.
Chatham
35.839444'
79.041111'
3.12
01284 - Non -Discharge Application Rate
0.40
16.09
inches
28
Governors Club Inc.
Chatham
35.837778'
79.045556'
8.60
01284 -Non-Discharge Application Rate
0.40
16.09
inches
29
Governors Club Inc.
Chatham
35.836389'
79.049722'
9.52
01284 -Non-Discharge Application Rate
0.40
16.09
inches
30
Governors Club Inc.
Chatham
35.834167'
79.05611 V
10.07
01284 - Non -Discharge Application Rate
0.40
16.09
inches
Totals
195.58
WQ0000088 Version 4.1 Attachment B Page 2 of 2

ATTACHMENT C — GROUNDWATER MONITORING AND LIMITATIONS
Monitoring Wells: MW-IA, MW-3A, MW-7, and MW-9
Permit Number: WQ0000088 Version: 4.1
GROUNDWATER CHARACTERISTICS
GROUNDWATER STANDARDS
MONITORING REQUIREMENTS
PCS Code
Parameter Description
Daily Maximum
Frequency Measurement
Sample Type
Footnotes
00680
Carbon, Tot Organic (TOC)
mg/L
3 x Year
Grab
1,6
00940
Chloride (as Cl)
250
mg/L
3 x Year
Grab
1
31616
Coliform, Fecal MF, M-FC Broth, 44.5 °C
#/100 mL
3 x Year
Grab
1
00610
Nitrogen, Ammonia Total (as N)
1.5
mg/L
3 x Year
Grab
1
00620
Nitrogen, Nitrate Total (as N)
10
mg/L
3 x Year
Grab
1
00400
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 °C
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
L2,3
1. 3 x Year monitoring shall be conducted in March, July, and November; Annual monitoring shall be conducted in November.
2. The measurement of water levels shall be made prior to purging the wells. The depth to water in each well shall be measured from the surveyed point on the top of the casing. The measurement of
pH shall be made after purging and prior to sampling for the remaining parameters.
3. The measuring points (top of well casing) of all monitoring wells shall be surveyed to provide the relative elevation of the measuring point for each monitoring well. The measuring points (top of
casing) of all monitoring wells shall be surveyed relative to a common datum.
4. Volatile Organic Compounds (VOC) - In November only, analyze by one of the following methods:
a. Standard Method 6230D, PQL at 0.5 gg/L or less
b. Standard Method 621 OD, PQL at 0.5 gg/L or less
c. EPA Method 8021, Low Concentration, PQL at 0.5 gg/L or less
d. EPA Method 8260, Low Concentration, PQL at 0.5 gg/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 laboratory shall be DWR certified to run any method used.
b. The method used shall include all the constituents listed in Table VIII of Standard Method 6230D.
c. The method used shall provide a PQL of 0.5 gg/L or less that shall be supported by laboratory proficiency studies as required by the DWR Laboratory Certification Unit. Any constituents
detected above the MDL but below the PQL of 0.5 gg/L shall be qualified (estimated) and reported.
5. If any volatile organic compounds (VOC) are detected as a result of monitoring as provided in Attachment C, then the Raleigh Regional Office supervisor, telephone number [phone], shall
be contacted immediately for further instructions regarding any additional follow-up analyses required.
6. If TOC concentrations greater than 10 mg/L are detected in any downgradient monitoring well, additional sampling and analysis shall be conducted to identify the individual constituents comprising
this TOC concentration. If the TOC concentration as measured in the background monitor well exceeds 10 mg/L, this concentration will be taken to represent the naturally occurring TOC
concentration. Any exceedances of this naturally occurring TOC concentration in the downgradient wells shall be subject to the additional sampling and analysis as described above.
7. Monitoring wells shall be reported consistent with the nomenclature and location information provided in Figure 1 and this attachment.
WQ0000088 Version 4.1 Figure 1 Page 1 of 1

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1 OF 1

Attachment 4
AMENDMENT TO AMENDED AND RESTATED WASTEWATER IRRIGATION
AGREEMENT
This AMENDMENT TO AMENDED AND RESTATED WASTEWATER IRRIGATION
AGREEMENT is made and entered into as ofthe'24 ay of August, 2005, by and among
Governors Club Limited Partnership, a Delaware Limited Partnership ("GCLP"); Governors
Club, Inc., a North Carolina nonprofit corporation (`GCI"), Governors Club Property Owners
Association, Inc., a North Carolina nonprofit corporation (the "POA") and Aqua North Carolina,
Inc., a North Carolina corporation ("Aqua"). GCLP, GCI, the POA and Aqua are sometimes
referred to herein individually as a "Party„ and collectively as the "Parties".
RECITALS
WHEREAS, the Parties, with the exception of Aqua, are all of the parties to a certain
AMENDED AND RESTATED WASTEWATER IRRIGATION AGREEMENT dated as of
December 18, 2003 (the "AMENDED AGREEMENT") regarding the treatment, disposal and
discharge of effluent emanating from within a certain planned unit development located in
Williams Township, Chatham County, North, Carolina and commonly known as "Governors
Club" (the "Development"); and
WHEREAS, the Amended Agreement was incomplete in certain respects as set forth below; and
WHEREAS, GCLP has entered into an Asset Purchase Agreement with Aqua whereby Aqua
will purchase the wastewater system assets and furnish wastewater treatment services to the
Development subject to the approval of the North Carolina Utilities Commission (the
"Commission"); and
WHEREAS, an application for approval of the transfer is pending before the Commission and
the Public Staff, North Carolina Utilities Commission in its review of the application has
requested the AMENDED AGREEMENT be clarified in certain respects.
NOW, THEREFORE, in order to preserve for all of the Parties the benefits accruing to them
pursuant to the AMENDED AGREEMENT and to satisfy the requests of the North Carolina
Utilities Commission described above, and for other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, the Parties hereto, intending to be legally
bound, agree to amend the AMENDED AGREEMENT as follows:
Easements to GCI. The AMENDED AGREEMENT provided for the granting of
easements from GCLP and POA to GCI for ingress and egress over GCLP and POA
property, for spray irrigation of treated effluent by GCI on GCLP and POA property, and
related matters. Through oversight, these easements were not prepared and executed.
The easements in question are attached hereto as Attachments A and B and incorporated
herein by reference and will be executed and delivered contemporaneously with the
execution of this Agreement.

2. Easements to GCLP. The AMENDED AGREEMENT provided for the granting of
easements from GCI and POA to GCLP for ingress and egress over GCI and POA
property, for spray irrigation of treated effluent by GCLP on GCI and POA property, and
related matters. Through oversight, these easements were not prepared and executed.
The easements in question are attached hereto as Attachments C and D and incorporated
herein by reference and will be executed and delivered contemporaneously with the
execution of this Agreement. The easements will be assigned to Aqua if the purchase of
the wastewater system assets is approved by the Commission.
3. Term. The original agreement replaced by the AMENDED AGREEMENT
provided that the agreement would continue in effect so long as the utility continued to
serve Governors Club. The AMENDED AGREEMENT failed to specify any term. 'It is
understood and agreed that the term of the AMENDED AGREEMENT will commence
as of December 18, 2003 and shall continue so long as GCLP or Aqua, or their successors
or assigns, continue to provide wastewater treatment services to the Development.
4. Rights and Obligations of the Parties. To the extent there is any conflict between the
terms and conditions of this Agreement and the AMENDED AGREEMENT, this
Agreement shall control. Except as specifically amended herein, the rights and
obligations of the Parties under the AMENDED AGREEMENT shall continue in full
force and effect. upon approval of the transfer of the assets
from GCLP to Aqua, Aqua shall succeed to the rights and obligations of GCLP under the
terms of the AMENDED AGREEMENT and under the terms of this
Agreement.
[Next Page is Signature Page]
AMENDMENT TO AMENDED AND RESTATED PAGE z
WASTEWATER IRRIGATION AGREEMENT

IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be duly
executed as of the Effective Date first above written.
GOVERNORS CLUB LIMITED PARTNERSHIP
By: Its General Partner,
Governors Club Development Corporation
By:
President
—7_
GOVERNORS CLUBfrINC.
GOVERNORS CLUB PROPERTY OWNERS
ASSOCIATION, INC.
By: �=-
President
AQUA NORTH CAROLINA, INC.
By:
AMENDMENT TO AMENDED AND RESTATED PAGE 3
WASTEWATER IRRIGATION AGREEMENT

ATTACHMENT A
EFFLUENT EASEMENT AGREEMENT
This EFFLUENT EASEMENT AGREEMENT (the "Effluent Easement Agreement") is made
and entered into as of the _ day of , 2005, by GOVERNORS CLUB LIMITED
PARTNERSHIP, a Delaware Limited Partnership ("Grantor") and GOVERNORS CLUB,
INC,, a North Carolina nonprofit corporation ("Grantee").
WITNESSETH:
THAT WHEREAS, Grantor is the owner of certain amenity areas and other real properly at
Governors Club (as defined below).
WHEREAS, Grantor and Grantee, among others, are parties to that certain Irrigation Agreement
(as defined below) whereby Grantee operates the Spray Irrigation Facilities (as defined below) to spray
Reuse Effluent on the Spray Areas (as defined below) owned by Grantor on behalf of the Permittee.
WHEREAS, the Irrigation Agreement provided that the parties would enter into this Agreement
to facilitate the fulfillment of Grantee's obligations under the Irrigation Agreement.
NOW, THEREFORE, in consideration of the mutual agreements contained herein and in the
Irrigation Agreement, and other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, Grantor and Grantee intending to be legally bound, agree as follows:
Definitions.
1.1 "DWQ" shall mean the Division of Water Quality of the North Carolina Department of
Environment and Natural Resources.
1.2 "Effluent Easement Agreement" shall mean this Effluent Easement Agreement, including
all exhibits and schedules hereto, if any, as the same may be amended from time to time.
1.-1 '`Effluent Storage Ponds" shall €wean the storage ponds at Governors Club in which the
Reuse Effluent (as defined below) is stored after treatment at the WWTP (as defined below), and from
which the Reuse Effluent is then pumped to be sprayed onto the Spray Areas (as defined below).
1.4 "Golf Course Spray Areas" shall mean the golf course and other areas at Governors Club
owned by Grantee that have been or may in the future be permitted by DWQ for spray irrigation of Reuse
Effluent.
1.5 "Governors Club " shall mean that certain planned unit development located in Williams
Township, Chatham County, North Carolina commonly known as "Governors Club" consisting of
residential units and a golf course, clubhouse, swimming pool, tennis courts and other amenities,
1.6 "Grantee" shall mean Governors Club, Inc., a North Carolina nonprofit corporation.
1.7 "Grantor" shall mean Governors Club Limited Partnership, a Delaware Limited
Partnership.

1.8 "Irrigation Agreement" shall mean that certain Amended and Restated Wastewater
Irrigation Agreement by and among Grantee, Grantor, and Governors Club Property Owners Association,
Inc., a North Carolina nonprofit corporation dated December 18, 2003, as amended from time to time.
1.9 "Permit" shall mean the permit for the operation of the Wastewater Utility System (as
defined below) and Spray Irrigation Facilities (as defined below) issued by DWQ, as the same may be
modified or renewed from time to time.
I.10 "Permittee " means Governors Club Limited Partnership, a Delaware Limited
Partnership, the holder of the Permit, and its successors and assigns.
1.11 "Spray Areas" shall mean all areas at Governors Club owned by Grantor that have been
or may in the future be permitted by DWQ for spray irrigation of Reuse Effluent.
I.12 "Spray .Irrigation Facilities" shall mean all Reuse Effluent irrigation lines, pumps,
booster pumps, irrigation and spray devices, controls and other devices used in the application of Reuse
Effluent from the Effluent Storage Ponds upon the Spray Areas.
1.13 "Reuse Effluent" shall mean wastewater that has been treated to the point that it meets
the effluent quality standards required by the Permit.
1.I4 "Wastewater Utility System " shall mean the WWTP, the collection system that delivers
wastewater to the WWTP, the Effluent Storage Ponds, the Spray Irrigation Facilities, all lift stations, and
other facilities used in the collection, treatment, holding and discharge of the wastewater.
1.15 "WWTP " shall mean the wastewater treatment plant located within Governors Club,
2. Grant of Easement.
2A Grantor hereby grants and conveys to Grantee, its successors and assigns forever, a
perpetual non-exclusive easement appurtenant to the property upon which the Golf Course Spray Areas
are located, as more particularly described in Exhibit A (the "Golf Course Property"), for the purpose of
spraying Reuse Effluent on the Spray Areas, installing, inspecting, replacing, repairing, operating and
maintaining the Spray Irrigation Facilities and other activities related thereto, all in accordance with the
protocols set forth on Exhibit B (the "Spray Protocols"). This easement allows such spraying and related
activities within the Spray Areas identified in the Permit and generally depicted on the map attached as
Exhibit C ("Easement Areas"). The Easement Areas are located within the property described on
Exhibit D attached hereto (the "Easement Property"), Grantor shall not further encumber the Easement
Areas, or engage in any activity therein, or grant any other interest or privilege therein to any other party,
that would interfere with Grantee's enjoyment of its rights or fulfillment of its obligations created by this
Effluent Easement Agreement.
2.2 Grantor further hereby grants to Grantee, its successors and assigns forever, a perpetual
non-exclusive easement appurtenant to the WWTP Property to the other portions of the Easement
Property for ingress, egress, regress and access to and from the Spray Areas and Spray Irrigation Facilities
and over, across, upon, and through the Spray Areas and Spray Irrigation Facilities, as necessary for
Grantee to enjoy the rights and to fulfill its obligations under this Effluent Easement Agreement, without
payment of any fee or other charge being trade therefore. Grantor shall not interfere with or permit any
other party to interfere with Grantee's right of ingress, egress, regress acid access granted hereby. In the
exercise of Grantee's right of ingress, egress, regress and access, Grantee shall, where possible, use
existing roads, paths, and other ways of travel to and from the Spray Areas. Grantee shall have no
2

obligation to maintain such roads, paths, or other ways of travel, but shall exercise ordinary care in its use
of the same. Where roads, paths, or other ways of travel do not exist, Grantor shall make reasonable
efforts to specify ways of travel for Grantee's use so as to permit Grantee to enjoy the privileges and
fulfill the obligations created by this Effluent Easement Agreement without undue interference. Grantee
shall use its best efforts to conduct its activities on the Spray Areas and in the Easement Areas so as to
avoid any unreasonable and adverse interference with the normal use of the Spray Areas. If Grantee
causes any damage to the property of the Grantor in the course of exercising the easement described in
this section, Grantee shall be responsible for repairing such damage, reasonable wear and tear excepted.
3. This section intentionally omitted.
4. General Provisions.
4.1 Binding upon Suce_essors and Assigns. The conditions, restrictions and easements
contained in this Effluent Easement Agreement are covenants running with the land. they are made by
Grantee and Grantor for the benefit of themselves, their successors and assigns in title to all or part of the
WWTP Property or the Easement Property.
4.2 No Third Party Bengficia Ri hts. Nothing expressed or referred to in this Effluent
Easement Agreement will be construed to give any person other than the parties to this Effluent Easement
Agreement any legal or equitable right, remedy or claim under or with respect to this Effluent Easement
Agreement or any provision of this Effluent Easement Agreement, except such rights as shall inure to a
successor or permitted assignee pursuant to Section 4.1 above.
4.3 Independent Contractor. The parties hereto are and shall be independent contractors to
one another, and nothing herein shall be deemed to cause this Effluent Easement Agreement to create an
agency, partnership, or joint venture between the parties hereto.
4.4 Counterparts, This Effluent Easement Agreement may be executed in one or more
counterpart signature pages (including facsimile counterpart signature pages), each of which will be
deemed to be an original copy of this Effluent Easement Agreement and all of which, when taken
together, will be deemed to constitute one and the same agreement.
4.5 Headings. The headings of particular provisions of this Effluent Easement Agreement
are inserted for convenience only and shall not be construed as a part of this Effluent Easement
Agreement or serve as a limitation or expansion on the scope of any term or provision of this Effluent
Easement Agreement.
4.6 Enforcement of Agreement. Each party acknowledges and agrees that the other party
would be irreparably damaged if any of the provisions of this Effluent Easement Agreement are not
performed in accordance with their specific terms and that any breach of this Effluent Easement
Agreement by a party could not be adequately compensated in all cases by monetary damages alone.
Accordingly, in addition to any other right or remedy to which a party may be entitled, at law or in equity,
it shall be entitled to enforce any provision of this Effluent Easement Agreement by a decree of specific
performance and to temporary, preliminary and permanent injunctive relief to prevent any breach or
threatened breach of any of the provisions of this Effluent Easement Agreement, without posting any
bond or other undertaking.
4.7 Notices. All notices and other communications required or permitted hereunder shall be
in writing and shall be sent either (1) personally by hand delivery, (ii) by United States first-class mail,
postage prepaid, (iii) by hand or nationally recognized overnight courier, or (iv) by facsimile addressed to

the address or facsimile number indicated on the signature pages to this Effluent Easement Agreement (or
at such other address or facsimile number as such parry or permitted assignee shall have furnished to the
other parties hereto in writing). All such notices and other written communications shall be effective on
the date of delivery, mailing, or facsimile transmission.
4.8 Waiver. No waivers of, or exceptions to, any term, condition or provision of this Effluent
Easement Agreement, in any one or more instances, shall be deemed to be, or construed as, a further or
continuing waiver of any such terra, condition or provision.
4.9 Entire Agreement. This writing and the documents referred to herein embody the entire
agreement and understanding between the parties hereto and there are no other agreements or
understandings, oral or written, with reference to the subject matter hereof that are not merged herein and
superseded hereby.
4.10 Modifications in Writing. This Effluent Easement Agreement shall not be modified,
amended, or changed in any respect except in writing, duly signed by the parties hereto, and each party
hereby waives any right to amend this Effluent Easement Agreement in any other way.
4.11 Consent to Jurisdiction. The parties hereto agree that the state and federal courts of North
Carolina shall have exclusive jurisdiction over this Effluent Easement Agreement and any controversies
arising out of, relating to, or referring to this Effluent Easement Agreement, the formation of this Effluent
Easement Agreement, and actions undertaken by the parties hereto as a result of this Effluent Easement
Agreement, whether such controversies sound in tort law, contract law or otherwise. Each of the parties
hereto expressly and irrevocably consents to the personal jurisdiction of such state and federal courts,
agrees to accept service of process by mail, and expressly waives any jurisdictional or venue defenses
otherwise available.
4.12 Governiny Law. This Effluent Easement Agreement shall be governed by the internal
substantive laws of the State of North Carolina, without regard to such state's conflict of law or choice of
law rules.
4.13 Recordation: Duration. Grantee shall record this Effluent Easement Agreement in the
Register of Deeds of Chatham County, North Carolina at Grantee's expense. The provisions of this
Effluent Easement Agreement will run with and bind title to the WWTP Property and the Easement
Property, will be binding upon and inure to the benefit of all owners of any portion of the WWTP
Property or the Easement Property, and will be and remain in effect until such time as a document
terminating. this Effluent Easement Agreement is signed by all of the owners of the WWTP Property and
the Easement Property and recorded in the public land records of Chatham County,
4.14 Re aired Amendments. In the event that the Permit is modified, amended or expanded at
any time to permit additional land owned by Grantor to be used for spray irrigation of Reuse Effluent, the
parties hereto shall execute and record an amendment to this Effluent Easement Agreement designating
such additional areas as Easement Areas hereunder.
[Next Page is Signature Page]
4

[Signature Page to Effluent Easement Agreement]
IN WITNESS WHEREOF, the parties have caused this Effluent Easement Agreement to be duly
executed in their respective corporate naives, all by authority duly given, the day and year first above
written.
GOVERNORS CLUB LIMITED PARTNERSHIP
a Delaware Limited Partnership
By: Its General Partner,
Governors Club Development Corporation
By:
Name:
Title:
Address: 130 Edinburgh, Suite 204
Cary, North Carolina 27511
Attn:
Fax:
GOVERNORS CLUB, INC.
a North Carolina Nonprofit Corporation
M.
Naane:
Title:
Address: 11000 Governors Drive
Chapel Hill, North Carolina 27517
Attn:
Fax:
5

EXHIBIT A
Golf Course Property

EXHIBIT B
Spray Protocols

EXFHBI`I' c
Easement Areas

EXHIBIT D
Easement Property
10

ATTACHMENT B
EFFLUENT EASEMENT AGREEMENT
This EFFLUENT EASEMENT AGREEMENT (the "Effluent Easement Agreement") is made
and entered into as of the — day of , 2005, by GOVERNORS CLUB PROPERTY
OWNERS ASSOCIATION, Inc., a North Carolina nonprofit corporation ("Grantor") and
GOVERNORS CLUB, INC., a North Carolina nonprofit corporation ("Grantee").
WITNESSETH:
THAT WHEREAS, Grantor is the owner of certain amenity areas and other real property at
Governors Club (as defined below).
WHEREAS, Grantor and Grantee, among others, are parties to that certain Irrigation Agreement
(as defined below) whereby Grantee operates the Spray Irrigation Facilities (as defined below) to spray
Reuse Effluent on the Spray Areas (as defined below) owned. by Grantor on behalf of the Permitee.
WHEREAS, the Irrigation Agreement provided that the parties would enter into this Agreement
to facilitate the fulfillment of Grantee's obligations under the Irrigation Agreement.
NOW, THEREFORE, in consideration of the mutual agreements contained herein and in the
Irrigation Agreement, and other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, Grantor and Grantee intending to be legally bound, agree as follows:
1. Definitions.
1.1 "DWQ" shall mean the Division of Water Quality of the North Carolina Department of
Environment and Natural Resources.
1.2 "Effluent Easement Agreement" shall mean this Effluent Easement Agreement, including
all exhibits and schedules hereto, if any, as the same may be amended from time to time.
L3 "Effluent Storage Ponds" shall mean the storage ponds at Governors Club in which the
Reuse Effluent (as defined below) is stored after treatment at the WWTP (as defined below), and from
which the Reuse Effluent is then pumped to be sprayed onto the Spray Areas (as defined below).
1.4 "Golf Course ,Spray Areas " shall mean the golf course and other areas at Governors Club
owned by Grantee that have been or may in the future be permitted by DWQ for spray irrigation of Reuse
Effluent.
1.5 "Governors Club " shall mean that certain planned unit development located in Williams
Township, Chatham County, North Carolina commonly known as "Governors Club" consisting of
residential units and a golf course, clubhouse, swimming pool, tennis courts and other amenities.
1.6 "Grantee " shall mean Governors Club, Inc., a North Carolina nonprofit corporation.
1.7 "Grantor" shall mean Governors Club Property Owners Association, Inc., a North
Carolina nonprofit corporation.

1.8 "Irrigation Agreement" shall mean that certain Amended and Restated Wastewater
Irrigation Agreement by and among Grantee, Grantor, and Governors Club Limited Partnership, a
Delaware Limited Partnership dated December 18, 2003, as amended from time to time.
L9 "Permit" shall. mean the permit for the operation of the Wastewater Utility System (as
defined below) and Spray Irrigation Facilities (as defined below) issued by DWQ, as the same may be
modified or renewed from time to time.
1.10 "Permittee" means Governors Club Limited Partnership, a Delaware Limited
Partnership, the holder of the Permit, and its successors and assigns.
1,11 "Spray Areas " shall mean all areas at Governors Club owned by Grantor that have been
or may in the future be permitted by DWQ for spray irrigation of Reuse Effluent.
L 12 "Spray Irrigation Facilities" shall mean all Reuse Effluent irrigation lines, pumps,
booster pumps, irrigation and spray devices, controls and other devices used in the application of Reuse
Effluent from the Effluent Storage Ponds upon the Spray Areas.
1.13 "Reuse Effluent" shall mean wastewater that has been treated to the point that it meets
the effluent quality standards required by the Pennit.
I.14 "Wastewater Utility System" shall mean the WWTP, the collection system that delivers
wastewater to the WWTP, the Effluent Storage Ponds, the Spray Irrigation Facilities, all lift stations, and
other facilities used in the collection, treatment, holding and discharge of the wastewater.
1.15 "WWTP" shall mean the wastewater treatment plant located within Governors Club.
Grant of Easement.
2.1 Grantor hereby grants and conveys to Grantee, its successors and assigns forever, a
perpetual non-exclusive easement appurtenant to the property upon which the Golf Course Spray Areas
are located, as more particularly described in Exhibit A (the "Golf Course Property"), for the purpose of
spraying Reuse Effluent on the Spray Areas, installing, inspecting, replacing, repairing, operating and
maintaining the Spray Irrigation Facilities and other activities related thereto, all in accordance with the
protocols set forth on Exhibit B (the "Spray Protocols"). This easement allows such spraying and related
activities within the Spray Areas identified in the Pen -nit and generally depicted on the map attached as
Exhibit C ("Easement Areas"). The Easement Areas are located within the property described on
Exhibit D attached hereto (the "Easement Property"). The right to spray pursuant to this easement is
given without payment of any fee or other charge being made therefore. Grantor shall not further
encumber the Easement Areas, or engage in any activity therein, or grant any other interest or privilege
therein to any other party, that would interfere with Grantee's enjoyment of its rights or fulfillment of its
obligations created by this Effluent Easement Agreement.
2.2 Grantor further hereby grants to Grantee, its successors and assigns forever, a perpetual
non-exclusive easement appurtenant to the WWTP Property to the other portions of the Easement
Property for ingress, egress, regress and access to and from the Spray Areas and Spray Irrigation Facilities
and over, across, upon, and through the Spray Areas and Spray Irrigation Facilities, as necessary for
Grantee to enjoy the rights and to fulfill its obligations under this Effluent Easement Agreement, without
payment of any fee or other charge being made therefore. Grantor shall not interfere with or permit any
other party to interfere with Grantee's right of ingress, egress, regress and access granted hereby. In the
exercise of Grantee's right of ingress, egress, regress and access, Grantee shall, where possible, use
2

existing roads, paths, and other ways of travel to and from the Spray Areas. Grantee shall have no
obligation to maintain such roads, paths, or other ways of travel, but shall exercise ordinary care in its use
of the same. Where roads, paths, or other ways of travel do not exist, Grantor shall make reasonable
efforts to specify ways of travel for Grantee's use so as to permit Grantee to enjoy the privileges and
fulfill the obligations created by this Effluent Easement Agreement without undue interference. Grantee
shall use its best efforts to conduct its activities on the Spray Areas and in the Easement Areas so as to
avoid any unreasonable and adverse interference with the normal use of the Spray Areas. If Grantee
causes any damage to the property of the Grantor in the course of exercising the easement described in
this section, Grantee shall be responsible for repairing such damage, reasonable wear and tear excepted.
3. No Payments for Reuse Effluent or Operation of the Spray Irrigation Facilities. There will not be
any payments now or at any time in the future by Grantor to Grantee for the Reuse Effluent that will be
sprayed on the Spray Areas. There will not be any payments by Grantee to Grantor now or in the future
for any aspect whatsoever of the operation, maintenance, and repair of the Spray Irrigation Facilities.
4. General Provisions.
4.1 Binding upon Successors and Assigns. The conditions, restrictions and easements
contained in this Effluent Easement Agreement are covenants running with the land; they are made by
Grantee and Grantor for the benefit of themselves, their successors and assigns in title to all or part of the
WWTP Property or the Easement Property.
4.2 No Third _Party Beneficiary Rights. Nothing expressed or referred to in this Effluent
Easement Agreement will be construed to give any person other than the parties to this Effluent Easement
Agreement any legal or equitable right, remedy or claim under or with respect to this Effluent Easement
Agreement or any provision of this Effluent Easement Agreement, except such rights as shall inure to a
successor or permitted assignee pursuant to Section 4.1 above.
4.3 Independent Contractor, The parties hereto are and shall be independent contractors to
one another, and nothing herein shall be deemed to cause this Effluent Easement Agreement to create an
agency, partnership, or joint venture between the parties hereto.
4.4 Counterparts. This Effluent Easement Agreement may be executed in one or more
counterpart signature pages (including facsimile counterpart signature pages), each of which will be
deemed to be an original copy of this Effluent Easement Agreement and all of which, when taken
together, will be deemed to constitute one and the same agreement.
4.5 Headings. The headings of particular provisions of this Effluent Easement Agreement
are inserted for convenience only and shall not be construed as a part of this Effluent .Easement
Agreement or serve as a limitation or expansion on the scope of any term or provision of this Effluent
Easement Agreement.
4.6 Enforcement of Agreement. Each party acknowledges and agrees that the other party
would be irreparably damaged if any of the provisions of this Effluent Easement Agreement are not
performed in accordance with their specific terms and that any breach of this Effluent Easement
Agreement by a party could not be adequately compensated in all cases by monetary damages alone.
Accordingly, in addition to any other right or remedy to which a party may be entitled, at law or in equity,
it shall be entitled to enforce any provision of this Effluent Easement Agreement by a decree of specific
performance and to temporary, preliminary and permanent injunctive relief to prevent any breach or
threatened breach of any of the provisions of this Effluent Easement Agreement, without posting any
bond or other undertaking.
3

4.7 Notices. All notices and other communications required or permitted hereunder shall be
in writing and shall be sent either (i) personally by hand delivery, (ii) by United States first-class mail,
postage prepaid, (ill) by hand or nationally recognized overnight courier, or (iv) by facsimile addressed to
the address or facsimile number indicated on the signature pages to this Effluent Easement Agreement (or
at such other address or facsimile number as such party or permitted assignee shall have furnished to the
other parties hereto in writing). All such notices and other written communications shall be effective on
the date of delivery, trailing, or facsimile transmission.
4.8 Waiver. No waivers of, or exceptions to, any term, condition or provision of this Effluent
Easement Agreement, in any one or more instances, shall be deemed to be, or construed as, a further or
continuing waiver of any such term, condition or provision.
4.9 Entire Agreement. This writing and the documents referred to herein embody the entire
agreement and understanding between the parties hereto and there are no other agreements or
understandings, oral or written, with reference to the subject matter hereof that are not merged herein and
superseded hereby.
4.10 Modifications i;n Writing. This Effluent Easement Agreement shall not be modified,
amended, or changed in any respect except in writing, duly signed by the parties hereto, and each party
hereby waives any right to amend this Effluent Easement Agreement in any other way.
4A 1 Consent to Jurisdiction. The parties hereto agree that the state and federal courts of North
Carolina shall have exclusive jurisdiction over this Effluent Easement Agreement and any controversies
arising out of, relating to, or referring to this Effluent Easement Agreement, the formation of this Effluent
Easement Agreement, and actions undertaken by the parties hereto as a result of this Effluent Easement
Agreement, whether such controversies sound in tort law, contract law or otherwise. Each of the parties
hereto expressly and irrevocably consents to the personal jurisdiction of such state and federal courts,
agrees to accept service of process by mail, and expressly waives any jurisdictional or venue defenses
otherwise available.
4.12 Governing Law. This Effluent Easement Agreement shall be governed by the internal
substantive laws of the State of North Carolina, without regard to such state's conflict of law or choice of
law rules.
4.13 Recordation; Duration. Grantee shall record this Effluent Easement Agreement in the
Register of Deeds of Chatham County, North Carolina at Grantee's expense. The provisions of this
Effluent Easement Agreement will run with and bind title to the WWTP Property and the Easement
Property, will be binding upon and inure to the benefit of all owners of any portion of the WWTP
Property or the Easement Property, and will be and remain in effect until such time as a document
terminating this Effluent Easement Agreement is signed by all of the owners of the WWTP Property and
the Easement Property and recorded in the public land records of Chatham County,
4.14 Required Amendments. In the event that the Permit is modified, amended or expanded at
any time to permit additional land owned by Grantor to be used for spray irrigation of Reuse Effluent, the
parties hereto shall execute and record an amendment to this Effluent Easement Agreement designating
such additional areas as Easement Areas hereunder.
[Next Page is Signature Page]
M

[Signature Page to Effluent Easement Agreement]
IN WITNESS WHEREOF, the parties have caused this Effluent Easement Agreement to be duly
executed in their respective corporate names, all by authority duly given, the day and year first above
written.
GOVERNORS CLUB PROPERTY OWNERS
ASSOCIATION, Inc., a North Carolina
nonprofit corporation
By:
Name:
Title:
Address:
Attn:
Fax:
GOVERNORS CLUB, INC.
a North Carolina Nonprofit Corporation
By:
Name:
Title:
Address: 11000 Governors Drive
Chapel Hill, North Carolina 27517
Attn:
Fax:
5

STATE OF NORTH CAROLINA
COUNTY OF
I, the undersigned Notary Public for the County and State aforesaid, certify that
personally appeared before me this day and acknowledged that he is the
of Governors Club Property Owners Association, Inc., a North
Carolina nonprofit corporation, and that by the authority duly given and as the act of such entity, he
signed the foregoing instrument in its name on its behalf as its act and deed.
2005. Witness my hand and official stamp or seal, this day of
My Commission Expires:
Date
STATE OF NORTH CAROLINA
COUNTY OF
Notary Public
I, the undersigned Notary Public for the County and State aforesaid, certify that
personally appeared before me this day and acknowledged that he is the
of Governors Club, Inc., a North Carolina nonprofit corporation; and
that by the authority duly given and as the act of such entity, he signed the foregoing instrument in its
name on its behalf as its act and deed,
2005. Witness my hand and official stamp or seal, this day of
My Commission Expires:
Date
Notary Public
6

EXHIBIT A
Golf Coarse Pro e

EXHIBIT B
Srayrotocols

EXHIBIT C
Easement Areas

EXHIBIT D
Easement Property
10

ATTACHMENT C
EFFLUENT EASEMENT AGREEMENT
This EFFLUENT EASEMENT AGREEMENT (the "Effluent Easement Agreement") is made
and entered into as of the _ day of 2005, by GOVERNORS CLUB, INC., a North Carolina
nonprofit corporation ("Grantor") and GOVERNORS CLUB LIMITED PARTNERSHIP, a
Delaware Limited Partnership ("Grantee").
W1sTNESSETH:
THAT WHEREAS, Grantor is the owner of a golf course and certain other real property at
Governors Club (as defined below).
WHEREAS, Grantee operates a Wastewater Utility System serving Governors Club.
WHEREAS, Grantor and Grantee, among others, are parties to that certain Irrigation Agreement
(as defined below) whereby Grantee operates the Spray Irrigation Facilities (as defined below) to spray
Reuse Effluent on the Spray Areas (as defined below) owned by Grantor.
WHEREAS, the Irrigation Agreement provided that the parties would enter into this Agreement
to facilitate the fulfillment of Grantee's obligations under the Irrigation Agreement.
NOW, THEREFORE; in consideration of the mutual agreements contained .herein and in the
Irrigation Agreement, and other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, Grantor and Grantee intending to be legally bound, agree as follows:
Definitions.
1.1 "DWQ" shall mean the Division of Water Quality of the North Carolina Department of
Environment and Natural Resources.
1.2 ".Effluent Easement Agreement" shall mean this Effluent Easement Agreement, including
all exhibits and schedules hereto, if any, as the same may be amended from time to time.
1.3 "Effluent Storage Ponds " shall mean the storage ponds at Governors Club in which the
Reuse Effluent (as defined below) is stored after treatment at the WWTP (as defined below), and from
which the Reuse Effluent is then pumped to be sprayed onto the Spray Areas (as defined. below).
1.4 "Governors Club " shall mean that certain planned unit development located in Williams
Township, Chatham County, North Carolina commonly known as "Governors Club" consisting of
residential units and a golf course, clubhouse, swimming pool, tennis courts and other amenities.
1.5 "Grantee " shall rnean Governors Club Limited Partnership, a Delaware Limited
Partnership.
1.6 "Grantor" shall mean Governors Club, Inc., a North Carolina nonprofit corporation.

1.7 "Irrigation Agreement" shall mean that certain Amended and Restated Wastewater
Irrigation Agreement by and among Grantee, Grantor, and Governors Club Property Owners Association,
Inc., a North Carolina nonprofit corporation dated December 18, 2003, as amended from time to time.
1.8 "Permit" shall mean the permit for the operation of the Wastewater Utility System (as
defined below) and Spray Irrigation Facilities (as defined below) issued by DWQ, as the same may be
modified or renewed from time to time.
1.9 "Spray Areas " shall meant all areas at Governors Club owned by Grantor that have been
or may in the future be permitted by DWQ for spray irrigation of Reuse Effluent.
1.10 "Spray Irrigation Facilities " shall mean all Reuse Effluent irrigation lines, pumps,
booster pumps, irrigation and spray devices, controls and other devices used in the application of Reuse
Effluent from the Effluent Storage Ponds upon the Spray Areas.
1.11 "Reuse Effluent" shall mean wastewater that has been treated to the point that it meets
the effluent quality standards required by the Pen -nit.
1.12 "Wastewater Utility System" shall mean the WWTP, the collection system that delivers
wastewater to the WWTP, the Effluent Storage Ponds, the Spray Irrigation Facilities, all lift stations, and
other facilities used in the collection, treatment, holding and discharge of the wastewater.
1.13 "WWTP" shall mean the wastewater treatment plant located within Governors Club.
2. Grant of Easement.
2.1 Grantor hereby grants and conveys to Grantee, its successors and assigns forever, a
perpetual non-exclusive easement appurtenant to the property upon which the WWTP is located, as more
particularly described in Exhibit A (the "WWTP Property"), for the purpose of spraying Reuse Effluent
on the Spray Areas, installing, inspecting, replacing, repairing, operating and maintaining the Spray
Irrigation Facilities and other activities related thereto, all in accordance with the protocols set forth on
Exhibit B (the "Spray Protocols"). This easement allows such spraying and related activities within the
Spray Areas identified in the Permit and generally depicted on the map attached as Exhibit C ("Easement
Areas"). The Easement Areas are located within the property described on Exhibit D attached hereto (the
"Easement Property"). Grantor shall not further encumber the Easement Areas, or engage in any
activity therein, or grant any other interest or privilege therein to any other party, that would interfere with
Grantee's enjoyment of its rights or fulfillment of its obligations created by this Effluent Easement
Agreement.
2.2 Grantor further hereby grants to Grantee, its successors and assigns forever, a perpetual
non-exclusive easement appurtenant to the WWTP Property to the other portions of the Easement
Property for ingress, egress, regress and access to and from the Spray Areas and Spray Irrigation Facilities
and over, across, upon, and through the Spray Areas and Spray Irrigation Facilities, as necessary for
Grantee to enjoy the rights and to fulfill its obligations under this Effluent Easement Agreement, without
payment of any fee or other charge being made therefore. Grantor shall not interfere with or permit any
other party to interfere with Grantee's right of ingress, egress, regress and access granted hereby. In the
exercise of Grantee's right of ingress, egress, regress and access, Grantee shall, where possible, use
existing roads, paths, and other ways of travel to and froze the Spray Areas. Grantee shall have no
obligation to maintain such roads, paths, or other ways of travel, but shall exercise ordinary care in its use
of the same. Where roads, paths, or other ways of travel do not exist, Grantor shall make reasonable
efforts to specify ways of travel for Grantee's use so as to permit Grantee to enjoy the privileges and
2

fulfill the obligations created by this Effluent Easement Agreement without undue interference. Grantee
shall use its best efforts to conduct its activities on the Spray Areas and in the Easement Areas so as to
avoid any unreasonable and adverse interference with the normal use of the Spray Areas. If Grantee
causes any damage to the property of the Grantor in the course of exercising the casement described in
this section, Grantee shall be responsible for repairing such damage, reasonable wear and tear excepted.
This section intentionally omitted.
General Provisions.
4.1 Binding upon Successors and Assigns. The conditions, restrictions and easements
contained in this Effluent Easement Agreement are covenants running with the land; they are made by
Grantee and Grantor for the benefit of themselves, their successors and assigns in title to all or part of the
WWTP property or the Easement Property,
4.2 No Third Party Beneficiary Rights. Nothing expressed or referred to in this Effluent
Easement Agreement will be construed to give any person other than the parties to this Effluent Easement
Agreement any legal or equitable right, remedy or claim under or with respect to this Effluent Easement
Agreement or any provision of this Effluent Easement Agreement, except such rights as shall inure to a
successor or pennitted assignee pursuant to Section 13.1 above.
4.3 Independent Contractor. The parties hereto are and shall be independent contractors to
one another, and nothing herein shall be deemed to cause this Effluent Easement Agreement to create an
agency, partnership, or joint venture between the parties hereto.
4A Countetparts. This Effluent Easement Agreement may be executed in one or more
counterpart signature pages (including facsimile counterpart signature pages), each of which will be
deemed to be an original copy of this Effluent Easement Agreement and all of which, when taken
together, will be deemed to constitute one and the same agreement,
4.5 Headings, The headings of particular provisions of this Effluent Easement Agreement
are inserted for convenience only and shall not be construed as a part of this Effluent Easement
Agreement or serve as a limitation or expansion on the scope of any term or provision of this Effluent
Easement Agreement.
4.6 Enforcement of Agreement. Each party acknowledges and agrees that the other party
would be irreparably damaged if any of the provisions of this Effluent Easement Agreement are not
performed in accordance with their specific terms and that any breach of this Effluent Easement
Agreement by a party could not be adequately compensated in all cases by monetary damages alone.
Accordingly, in addition to any other right or remedy to which a party may be entitled, at law or in equity,
it shall be entitled to enforce any provision of this Effluent Easement Agreement by a decree of specific
performance and to temporary, preliminary and permanent injunctive relief to prevent any breach or
threatened breach of any of the provisions of this Effluent Easement Agreement, without posting any
bond or other undertaking.
4.7 Notices. All notices and other communications required or permitted hereunder shall be
in writing and shall be sent either (i) personally by hand delivery, (ii) by United States first-class hail.
postage prepaid, (iii) by hand or nationally recognized overnight courier, or (iv) by facsimile addressed to
the address or facsimile number indicated on the signature pages to this Effluent Easement Agreement (or
at such other address or facsimile number as such party or permitted assignee shall have furnished to the

other parties hereto in writing). All such notices and other written communications shall be effective on
the date of delivery, mailing, or facsimile transmission.
4.8 Waiver. No waivers of, or exceptions to, any term, condition or provision of this Effluent
Easement Agreement, in any one or more instances, shall be deemed to be, or construed as, a further or
continuing waiver of any such term, condition or provision.
4.9 Entire Agreement, This writing and the documents referred to herein embody the entire
agreement and understanding between the parties hereto and there are no other agreements or
understandings, oral or written, with reference to the subject matter hereof that are not merged herein and
superseded hereby.
4.10 Modifications in Writing. This Effluent Easement Agreement shall not be modified,
amended, or changed in any respect except in writing, duly signed by the parties hereto, and each party
hereby waives any right to amend this Effluent Easement Agreement in any other way.
4.11 Consent to Jurisdiction, The parties hereto agree that the state and federal courts of North
Carolina shall have exclusive jurisdiction over this Effluent Easement Agreement and any controversies
arising out of relating to, or referring to this Effluent Easement Agreement, the formation of this Effluent
Easement Agreement, and actions undertaken by the parties hereto as a result of this Effluent Easement
Agreement, whether such controversies sound in tort law, contract law or otherwise. Each of the parties
hereto expressly and irrevocably consents to the personal ,jurisdiction of such state and federal courts,
agrees to accept service of process by mail, and expressly waives any jurisdictional or venue defenses
otherwise available.
4.12 Governing Law. This Effluent Easement Agreement shall be governed by the internal
substantive laws of the State of North Carolina, without regard to such state's conflict of law or choice of
law rules.
4.13 Recordation' Duration. Grantee shall record this Effluent Easement Agreement in the
Register of Deeds of Chatham County, North Carolina at Grantee's expense. The provisions of this
Effluent Easement Agreement will run with and bind title to the WWTP Property and the Easement
Property, will be binding upon and inure to the benefit of all owners of any portion of the WWTP
Property or the Easement Property, and will be and remain in effect until such time as a document
terminating this Effluent Easement Agreement is signed by all of the owners of the WWTP Property and
the Easement Property and recorded in the public land records of Chatham County.
4.14 Required Amendments. In the event that the Permit is modified, amended or expanded at
any time to permit additional land owned by Grantor to be used for spray irrigation of Reuse Effluent, the
parties hereto shall execute and record an amendment to this Effluent Easement Agreement designating
such additional areas as Easement Areas hereunder.
[Next Page is Signature Page]

[Signature Page to Effluent Easement Agreement/
IN WITNESS WHEREOF, the parties have caused this Effluent Easement Agreement to be duly
executed in their respective corporate names, all by authority duly given, the day and year first above
written.
GOVERNORS CLUB, INC.
a North Carolina Nonprofit Corporation
By:
Name:
Title:
Address: 11000 Governors Drive
Chapel Hill, North Carolina 27517
Attn:
Pax:
GOVERNORS CLUB LIMITED PARTNERSHIP
a Delaware Limited Partnership
By: Its General Partner,
Governors Club Development Corporation
By:
Name:
Title:
Address: 130 Edinburgh, Suite 204
Cary, North Carolina 27511
Attn:
Pax:
5

STATE OF NORTH CAROLINA
COUNTY OIL
I, the undersigned Notary .Public for the County and State aforesaid, certify that
personally appeared before me this day and acknowledged that he is the
of Governors Club, Inc., a North Carolina nonprofit corporation, and
that by the authority duly given and as the act of such entity, he signed the foregoing instrument in its
name on its behalf as its act and deed.
2005. Witness my hand and official stamp or seal, this day of
My Commission Expires:
Date Notary Pub tic
STATE OF NORTH CAROLINA
COUNTY OF
I, the undersigned Notary Public for the County and State aforesaid, certify that
personally appeared before one this day and acknowledged that he is the
of Governors Club Development Corporation, the general partner of
Governors Club Limited Partnership, a Delaware Limited Partnership, and that by the authority
duly given and as the act of such entity, he signed the foregoing instrument in its name on its behalf as its
act and deed.
2005. Witness my hand and official stamp or seal, this day of
My Commission Expires:
Date
Notary Public
6

XHIBIT A
W WIT PWerty

EXHIBIT B
Spray Protocols

EXHIBIT C
Easement Areas

EXHTBT'T' D
Easement Property
10

ATTACHMENT D
EFFLUENT EASEMENT AGREEMENT
This EFFLUENT EASEMENT AGREEMENT (the "Effluent Easement Agreement") is made
and entered into as of the — day of , 2005, by GOVERNORS CLUB PROPERTY
OWNERS ASSOCIATION, Inc., a North Carolina nonprofit corporation ("Grantor") and
GOVERNORS CLUB LIMITED PARTNERSHIP, a Delaware Limited Partnership
("Grantee").
WITNESSETH:
THAT WHEREAS, Grantor is the owner of certain amenity areas and other real property at
Governors Club (as defined below).
WHEREAS, Grantee operates a Wastewater Utility System serving Governors Club.
WHEREAS, Grantor and Grantee, among others, are parties to that certain Irrigation Agreement
(as defined below) whereby Grantee operates the Spray Irrigation Facilities (as defined below) to spray
Reuse Effluent on the Spray Areas (as defined below) owned by Grantor.
WHEREAS, the Irrigation Agreement provided that the parties would enter into this Agreement
to facilitate the fulfillment of Grantee's obligations under the Irrigation Agreement,
NOW, THEREFORE, in consideration of the mutual agreements contained herein and in the
Irrigation Agreement, and other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, Grantor and Grantee intending to be legally bound, agree as follows:
Definitions.
1.1 "DWQ" shall mean the Division of Water Quality of the North Carolina Department of
Environment and Natural Resources.
1.2 "Effluent Easement Agreement" shall mean this Effluent Easement Agreement, including
all exhibits and schedules hereto, if any, as the same may be amended from time to time.
1.3 "Effluent Storage Ponds" shall mean the storage ponds at Governors Club in which the
Reuse Effluent (as defined below) is stored after treatment at the WWTP (as defined below), and from
which the Reuse Effluent is then pumped to be sprayed onto the Spray Areas (as defined below).
1.4 "Governors Club" shall mean that certain planned unit development located in Williams
Township, Chatham County, North Carolina commonly known as "Governors Club" consisting of
residential units and a golf course, clubhouse, swimming pool, tennis courts and other amenities.
1.5 "Grantee" shall mean Governors Club Limited Partnership, a Delaware Limited
Partnership.
1.6 "Grantor" shall mean Governors Club Property Owners Association, Inc., a North
Carolina nonprofit corporation.

1.7 "Irrigation Agreement" shall mean that certain Amended and Restated Wastewater
Irrigation Agreement by and among Grantee, Grantor, and Governors Club, Inc., a North Carolina
nonprofit corporation dated December 18, 2003, as amended from time to time.
1.8 "Permit" shall mean the permit for the operation of the Wastewater Utility System (as
defined below) and Spray Irrigation. Facilities (as defined below) issued by DWQ, as the same may be
modified or renewed from time to time.
1.9 "Spray Areas" shall mean all areas at Governors Club owned by Grantor that have been
or may in the future be permitted by DWQ for spray irrigation of Reuse Effluent.
1.10 "Spray Irrigation Facilities " shall mean all Reuse Effluent irrigation lines, pumps,
booster pumps, irrigation and spray devices, controls and other devices used in the application of Reuse
Effluent from the Effluent Storage Ponds upon the Spray Areas.
1.11 "Reuse Effluent" shall mean wastewater that has been treated to the point that it meets
the effluent quality standards required by the Permit.
1.12 "Wastewater Utility System" shall mean the WWTP, the collection system that delivers
wastewater to the WWTP, the Effluent Storage Ponds, the Spray Irrigation Facilities, all lift stations, and
other facilities used in the collection, treatment, holding and discharge of the wastewater.
1.13 "WWTP" shall mean the wastewater treatment plant located within Governors Club.
2. Grant of Easement.
2A Grantor hereby grants and conveys to Grantee, its successors and assigns forever, a
perpetual non-exclusive easement appurtenant to the property upon which the WWTP is located, as more
particularly described in Exhibit A (the "WWTP Property"), for the purpose of spraying Reuse Effluent
on the Spray Areas, installing, inspecting, replacing, repairing, operating and maintaining the Spray
Irrigation Facilities and other activities related thereto, all in accordance with the protocols set forth on
Exhibit B (the "Spray Protocols"), This easement allows such spraying and related activities within the
Spray Areas identified in the Permit and generally depicted on the reap attached as Exhibit C ("Easement
Areas"). The Easement Areas are located within the property described on Exhibit D attached hereto (the
"]Easement Property"). The right to spray pursuant to this easement is given without payment of any fee
­r other charge being made therefore. Grantor shall not fi€rther encumber the Easement Areas, or engage
in any activity therein, or grant any other interest or privilege therein to any other party, that would
interfere with Grantee's enjoyment of its rights or fulfillment of its obligations created by this Effluent
Easement Agreement,
2.2 Grantor further hereby grants to Grantee, its successors and assigns forever, a perpetual
non-exclusive easement appurtenant to the WWTP Property to the other portions of the Easement
Property for ingress, egress, regress and access to and from the Spray Areas and Spray Irrigation Facilities
and over, across, upon, and through the Spray Areas and Spray Irrigation Facilities, as necessary for
Grantee to enjoy the rights and to fulfill its obligations under this Effluent Easement Agreement, without
payment of any fee or other charge being made therefore. Grantor shall not interfere with or permit any
other party to interfere with Grantee's right of ingress, egress, regress and access granted hereby. In the
exercise of Grantee's right of ingress, egress, regress and access, Grantee shall, where possible, use
existing roads, paths, and other ways of travel to and from the Spray Areas. Grantee shall have no
obligation to maintain such roads, paths, or other ways of travel, but shall exercise ordinary care in its use
of the same. Where roads, paths, or other ways of travel do not exist, Grantor shall make reasonable
2

efforts to specify ways of travel for Grantee's use 'so as to permit Grantee to enjoy the privileges and
fulfill the obligations created by this Effluent Easement Agreement without undue interference. Grantee
shall use its best efforts to conduct its activities on the Spray Areas and in the Easement Areas so as to
avoid any unreasonable and adverse interference with the normal use of the Spray Areas. If Grantee
causes any damage to the property of the Grantor in the course of exercising the easement described in
this section, Grantee shall be responsible for repairing such damage, reasonable wear and tear excepted.
3. No Payments for Reuse Effluent or O eration of the S ra lrri anon Facilities. There will not be
any payments now or at any time in the future by Grantor to Grantee for the Reuse Effluent that will be
sprayed on the Spray Areas. There will not be any payments by Grantee to Grantor now or in the fixture
for any aspect whatsoever of the operation, maintenance, and repair of the Spray Irrigation facilities.
4. General Provisions.
4,1 Binding upon Successors and Assi ns. The conditions, restrictions and easements
contained in this Effluent Easement Agreement are covenants running with the land; they are made by
Grantee and Grantor for the benefit of themselves, their successors and assigns in title to all or part of the
WWTP Property or the Easement Property,
4.2 No Third Party Beneficiary Ri hts. Nothing expressed or referred to in this Effluent
Easement Agreement will be construed to give any person other than the parties to this Effluent Easement
Agreement any legal or equitable right, remedy or claim under or with respect to this Effluent Easement
Agreement or any provision of this Effluent Easement Agreement, except such rights as shall inure to a
successor or permitted assignee pursuant to Section 4.1 above.
4.3 Independent Contractor. The parties hereto are and shall be independent contractors to
one another, and nothing herein shall be deemed to cause this Effluent Easement Agreement to create an
agency, partnership, orjoint venture between the parties hereto.
4A CounteMarts. This Effluent Easement Agreement may be executed in one or more
counterpart signature pages (including facsimile counterpart signature pages), each of which will be
deemed to be an original copy of this Effluent Easement Agreement and all of which, when taken
together, will be deemed to constitute one and the same agreement.
4,5 Headin,,s. The headings of particular provisions of this Effluent Easement Agreement
are inserted for convenience only and shall not be construed as a part of this Effluent Easement
Agreement or serve as a limitation or expansion on the scope of any term or'provision of this Effluent
Easement Agreement.
4.6 Enforcement of Agreement. Each party acknowledges and agrees that the other party
would be irreparably damaged if any of the provisions of this Effluent Easement Agreement are not
performed in accordance with their specific terms and that any breach of this Effluent Easement
Agreement by a party could not be adequately compensated in all cases by monetary damages alone.
Accordingly, in addition to any other right or remedy to which a party may be entitled, at law or in equity,
it shall be entitled to enforce any provision of this Effluent Easement Agreement by a decree of specific
performance and to temporary, preliminary and permanent injunctive relief to prevent any breach or
threatened breach of any of the provisions of this Effluent Easement Agreement, without posting any
bond or other undertaking.
4.7 Notices. All notices and other communications required or permitted hereunder shall be
in writing and shall be sent either (i) personally by hand delivery, (ii) by United States first-class mail,

postage prepaid, (iii) by hand or nationally recognized overnight courier, or (iv) by facsimile addressed to
the address or facsimile number indicated on the signature pages to this Effluent Easement Agreement (or
at such other address or facsimile number as such party or permitted assignee shall have furnished to the
other parties hereto in writing). All such notices and other written communications shall be effective on
the date of delivery, mailing, or facsimile transmission.
4.8 Waiver. No waivers of, or exceptions to, any term, condition or provision of this Effluent
Easement Agreement, in any one or more instances, shall be deemed to be, or construed as, a further or
continuing waiver of any such term, condition or provision.
4.9 Entire A regiment. This writing and the documents referred to herein embody the entire
agreement and understanding between the parties hereto and there are no other agreements or
understandings, oral or written, with reference to the subject matter hereof that are not merged herein and
superseded hereby,
4.10 Modifications in Writing. This Effluent Easement Agreement shall not be modified,
amended, or changed in any respect except in writing, duly signed by the parties hereto, and each party
hereby waives any right to amend this Effluent Easement Agreement in any other way.
4.11 Consent to Jurisdiction. The parties hereto agree that the state and federal courts of North
Carolina shall have exclusive jurisdiction over this Effluent Easement Agreement and any controversies
arising out of, relating to, or referring to this Effluent Easement Agreement, the formation of this Effluent
Easement Agreement, and actions undertaken by the parties hereto as a result of this Effluent Easement
Agreement, whether such controversies sound in tort law, contract law or otherwise. Each of the parties
hereto expressly and irrevocably consents to the personal jurisdiction of such state and federal courts,
agrees to accept service of process by mail, and expressly waives any jurisdictional or venue defenses
otherwise available.
4.12 Governing Law. This Effluent Easement Agreement shall be governed by the internal
substantive laws of the State of North Carolina, without regard to such state's conflict of law or choice of
law rules.
4.13 Recordation- Duration. Grantee shall record this Effluent Easement Agreement in the
Register of Deeds of Chatham County, North Carolina at Grantee's expense. The provisions of this
Effluent Easement Agreement will run with and bind title to the WWTP Property and the Easement
Property, will be binding upon and inure to the benefit of all owners of any portion of the WWTP
Property or the Easement Property, and will be and remain in effect until such time as a document
terminating this Effluent Easement Agreement is signed by all of the owners of the WWTP Property and
the Easement Property and recorded in the public land records of Chatham County.
4.14 Required Amendments. In the event that the Permit is modified, amended or expanded at
any time to permit additional land owned by Grantor to be used for spray irrigation of Reuse Effluent, the
parties hereto shall execute and record an amendment to this Effluent Easement Agreement designating
such additional areas as Easement Areas hereunder.
[Next Page is Signature Page]
4

Is
[Signature Page to Effluent Easement Agreement]
IN WITNESS WHEREOF, the parties have caused this Effluent Easement Agreement to be duly
executed in their respective corporate names, all by authority duly given, the day and year first above
written.
GOVERNORS CLUB PROPERTY OWNERS
ASSOCIATION, Inc., a North Carolina
nonprofit corporation
By:
Name:
Title:
Address:
Attn:
Fax:
GOVEMNORS CLUB LIMITED PARTNERSHIP
a Delaware Limited Partnership
By: Its General Partner,
Governors Club Development Corporation
By:
Name:
Title:
Address: 130 Edinburgh, Suite 204
Cary, North Carolina 27511
Attn:
5

STATE OF NORTH CAROLINA
COUNTY OF
I, the undersigned Notary Public for the County and State aforesaid, certify that
personally appeared before me this day and acknowledged that lie is the
of Governors Club Property Owners Association, Inc., a North
Carolina nonprofit corporation, and that by the authority duly given and as the act of such entity, he
signed the foregoing instrument in its name on its behalf as its act and deed.
Witness my hand and official stamp or seal, this day of
zoas.
My Commission Expires:
Date Notary Public
STATE OF NORTH CAROLINA
COUNTY OF
I, the undersigned Notary Public for the County and State aforesaid, certify that
personally appeared before me this day and acknowledged that he is the
of Governors Club Development Corporation, the general partner of
Governors Club Limited Partnership, a Delaware Limited Partnership, and that by the authority
duly given and as the act of such entity, he signed the foregoing instrument in its name on its behalf as its
act and deed.
Witness my hand and official stamp or seal, this day of
2005.
My Commission Expires:
Date
Notary Public
6

EXHIBIT A
WWTP Mperty

EXHIBIT B
S ra Protocols

EXHIBIT C
Easement Areas

EXHIBIT D
Easement„Property
10