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En/� Washington,D.C.20460 I�/`1 OMB No.2040-0057 Water Compliance Inspection Report Approval expires 8-31-98 Section A: National Data System Coding(i.e., PCS) - --.----Transaction-Code— .NP.DES_ -yr/mo/day-. — ------Inspection-Type ---Inspector- Fac-T_ype--_ 1 I u1 2 15I 31 NCG530066 111 121 10/10/21 117 181 r1 19us 20` L J LJ Remarks 1=I lJ J 2111111111 Jill 111111111111111111111111111111111116 Inspection Work Days Facility Self-Monitoring Evaluation Rating B1 QA —---—------—----------Reserved--------------------- 67 I 169 70 U 71' I 72(N( 73 W 74 751 I I I I I Li 80 Section B: Facility Data �--� Name and Location of Facility Inspected(For Industrial Users discharging to POTW,also include Entry Time/Date Permit Effective Date POTW name and NPDES permit Number) Bragg Trout Farm 12:10 PM 10/10/21 07/08/01 old Wagon Rd Exit Time/Date Permit Expiration Date Balsam Grove NC 28708 01:00 PM 10/10/21 12/07/31 Name(s)of Onsite Representative(s)/ritles(s)/Phone and Fax Number(s) Other Facility Data Richard Bragg//828-877-5574 / Name,Address of Responsible Official/Title/Phone and Fax Number Richard W Bragg,H C 73 Box 659 Rosman NC 287729618//828-877-5574/ Contacted yes Section C: Areas Evaluated During Inspection(Check only those areas evaluated) Permit Operations&Maintenance E Facility Site Review Effluent/Receiving Waters Section D: Summary of Finding/Comments Attach additional sheets of narrative and checklists as necessary) (See attachment summary) Name(s)and Signature(s)of Inspector(s) Agency/Office/Phone and Fax Numbers Date Keith Haynes. ARO WQ//828-296-4500/ f Signature of Management Q A Reviewer Agency/Office/Phone and Fax Numbers Dat Roger C Edwards'-Rd!�- ARO WQ//828-296-4500/ f t 3 EPA Form 3560-3(Rev 9-94)Previous editions are obsolete. Page# 1 NPDES yr/mo/day Inspection Type 1 3I NCG530066 I11 12I 10/10/21 I17 18U Section D: Summary of LFinding/Comments(Attach additional sheets of narrative and checklists as necessary) ---------Effluent was slightly-turbid-due-t-o-fe--e-ding taking plat at-the time of theinspecfion:-The discharge did not-- --- appear to be causing visible problems with the receiving stream. If a waste management BMP has not been submitted, the permittee should do so as soon as possible. Page# 2 Permit: NGG530066 Owner-Facility: Bragg Trout Farm Inspection Date: 10/21/2010 Inspection Type: Compliance Evaluation Operations&Maintenance Yes No NA NE -----Isthe-plant-generally--clean-with-acceptable-housekeeping? - -- ____ _■-❑ ❑ ❑---- - Does the facility analyze process control parameters,for ex: MLSS, MCRT, Settleable Solids,pH, DO,Sludge ❑ ❑ ■ ❑ Judge,and other that are applicable? Comment: Permit Yes No NA NE (If the present permit expires in 6 months or less). Has the permittee submitted a new application? ❑ ❑ ■ ❑ Is the facility as described in the permit? ■ ❑ ❑ ❑ #Are there any special conditions for the permit? ❑ ❑ ■ ❑ Is access to the plant site restricted to the general public? ❑ ❑ ■ ❑ Is the inspector granted access to all areas for inspection? 0 ❑ ❑ ❑ Comment: Page# 3 �4 1 ��._ C I �. COPY NCDENR North Carolina Department of Environment and Natural Resources Division of Water Quality Beverly Eaves Perdue Coleen H. Sullins Dee Freeman Governor Director Secretary August 31, 2010 Dick Bragg Post Office Box 659 Rosman NC 28772 SUBJECT: Compliance Sampling Inspection Bragg Trout Farm Permit No: NCG530066 Transylvania County Dear Mr. Bragg: Enclosed please find a copy of the Compliance Sampling Inspection Report from ,the inspection conducted on August 11, 2010. The Compliance Sampling Inspection was conducted by Roger Edwards and me of the Asheville Regional Office. The facility was found to be in Compliance with permit NCG530066. Please refer to the enclosed inspection report for additional observations and comments. If you have any questions, please do not hesitate to contact me at 828-296- 4500. Sincerely, Keith Hay es Environmental Sr. Specialist Enclosure CC: Central Files Asheville Files S:\SWP\Transylvania\Wastewater\General\NCG53 Trout Farms\08-11-10CElletter0066.doc SURFACE WATER PROTECTION—ASHEVILLE REGIONAL OFFICE Location:2090 U.S.Highway 70,Swannanoa, NC 28778 NorthCaro/li/na Phone:(828)296-4500\FAX:828 299-7043\Customer Service: 1-877-623-6748 orthCaQ[`� Internet:www.ncwaterguality.org United States Environmental Protection Agency Form Approved. EPA Washington,D.C.20460 OMB No.2040-0057 Water Compliance Inspection Report Approval expires 8-31-98 Section A: National Data System Coding(i.e., PCS) Transaction Code NPDES yr/mo/day Inspection Type Inspector Fac Type 1 NU 2 IsI 31 NCG530066 I11 121 10/08/11 117 181e1 191G1 201 1:1 1=J Remarks tJ U lJ 21111111111111111111111111111111111111111111111116 Inspection Work Days Facility Self-Monitoring Evaluation Rating B1 CIA ---------------------------Reserved--------------------- 67 169 70 U 71( I 72 I N I 73I W I 174 751 I I I I I Li 180 Section B: Facility Data '--' Name and Location of Facility Inspected(For Industrial Users discharging to POTW,also include Entry Time/Date Permit Effective Date POTW name and NPDES permit Number) 01:45 PM 10/08/11 07/08/01 Bragg Trout Farm Old wagon Rd Exit Time/Date Permit Expiration Date Balsam Grove NC 28708 03:00 PM 10/08/11 12/07/31 Name(s)of Onsite Representative(s)/Titles(s)/Phone and Fax Number(s) Other Facility Data Richard W Bragg//828-877-5574 / Name,Address of Responsible Official/Title/Phone and Fax Number Richard W Bragg,H C 73 Box 659 Rosman NC 287729618//828-877-5574/ Contacted yes Section C: Areas Evaluated During Inspection(Check only those areas evaluated) Permit N Operations&Maintenance E Facility Site Review 0 Effluent/Receiving Waters Section D: Summary of Finding/Comments Attach additional sheets of narrative and checklists as necessary) (See attachment summary) Name(s)and Signature(s)of Inspector(s) Agency/Office/Phone and Fax Numbers Date Keith Haynes 9 ARO WQ//828-296-4500/ 9-30" 10 Roger C Edwards/ ARO WQ//828-296-4500/ Signature of Management Q A Reviewer Agency/Office/Phone and Fax Numbers Date Roger C-Edwards.. _._ -.__ ARO- WQ//828-296-4500/ _ __ '3 38 20 O EPA Form 3560-3(Rev 9-94)Previous editions are obsolete. Page# 1 NPDES yr/mo/day Inspection Type 1 3I NCG530066 Itt 12I 10/08/11 I1 7 181 Section D: Summary of Finding/Comments(Attach additional sJheets of narrative and checklists as necessary) The farm appeared to be operating in compliance with the general permit. Page# 2 Permit: NCG530066 Owner-Facility: Bragg Trout Farm Inspection Date: 08/11/2010 Inspection Type: Compliance Sampling Operations &Maintenance Yes No NA NE Is the plant generally clean with acceptable housekeeping? 0 ❑ Cl ❑ Does the facility analyze process control parameters, for ex: MLSS, MCRT, Settleable Solids,pH, DO, Sludge ■ ❑ ❑ ❑ Judge,and other that are applicable? Comment:_ - The farm appeared to be well maintained with no problems noted. The - - owners have been experiencing lots of fish mortality due to weather conditions.The fish had not been fed in about two weeks due to the prolonged high ambient temperatures and the lower than normal stream flow. Fish production is normally 200,000 to 250,000 Ibs per year. Permit Yes No NA NE (If the present permit expires in 6 months or less). Has the permittee submitted a new application? ❑ ❑ ■ ❑ Is the facility as described in the permit? ■ ❑ ❑ ❑ #Are there any special conditions for the permit? ❑ ❑ ■ ❑ Is access to the plant site restricted to the general public? ❑ ❑ ❑ Is the inspector granted access to all areas for inspection? ❑ ❑ ❑ Comment: Effluent Pipe Yes No NA NE Is right of way to the outfall properly maintained? M ❑ ❑ ❑ Are the receiving water free of foam other than trace amounts and other debris? ■ ❑ ❑ ❑ If effluent (diffuser pipes are required) are they operating properly? ❑ ❑ ■ ❑ Comment: Downstream Dissolved Oxygen was 8.05 mg/I at 21.7 degrees C. No adverse impacts were noted in the receiving stream. Effluent samples were collected for BOD, TSS and Nutrients. BOD=2.0 mg.l TSS=6.2 mg/I Both of the results are at the normal minimum detection limits for the lab. Nutrient Results: NH3=0.42 mg/I TKN=0.70 mg/I NO2 plus NO3=0.14 mg/I Total P=0.11 mg/I Page# 3 County: TRANSYLVANIA I Sample ID: AB62130 1 River Basin �()f`-1ATF' PO Number# 1OW6691 Report To ARCS P Date Received: 0 811 312 01 0 vs �C` Collector: R EDWARDS >_ _� Time Received: 08:30 r� Labworks LoginlD SMATHIS Region: ARO Report Generated: 8/27/10 Sample Matrix: WASTEWATER Date Reported: 08/27/2010 Loc.Type: EFFLUENT Emergency Yes/No MOO COC Yes/No Loc.Descr.: BRAGG TROUT FARM Location ID: AROSPNLC Collect Date: 0811112010 Collect Time: 14:35 Sample Depth Result/ Method Analysis Validated by CAS# Analyte Name PQL Qualifier Units Reference Date LAB Sample temperature at receipt by lab 2.4 °c 8/13/10 SMATHIS NUT NH3 as N in liquid 0.02 0.42 mg1L as N LaclO-107-06-1-J 8/17/10 CGREEN Total Kjeldahl N as N in liquid 0.2 0.70 mg1L as N Lachat107-06-2-H 8/19/10 CGREEN NO2+NO3 as N in liquid 0.02 0.14 mg/L as N LaC10-107-04-1-c 8/17/10 CGREEN Phosphorus—total as P.in liquid 0.02 0.11 mg/L as P LaC10-115-01-lEF 8/16110 CGREEN i SEP - 1 2010 UJA(; RCU/.L.ITY SECTION fl4_GIONAL•OFFICF f Laboratory Section>>1623 Mail Service Center,Raleigh,NC 27699.1623 (919)733.3908 For a detailed description of the qualifier codes refer to lily�;�f4?S?1.1.91.:f!rA1d?1?f.4L41!WAhH(,R/Icj,4?14�A.(.O.f!.IS?lLd4I!.!!F.141YO,!ila,.,(�i�ali.(er,,,S.(!.Sift,;}.L:.IdU.ftalR!!.f!!dl:!!.C:tld';P..r.4?�riN{eUpyqli!i�/slflflip,(!�i,4nrh�?,y}ti,(s, Page 1 of 1 (µ1 A W n > r r r r to �D Oo V CT cn P to N w ® I'0 00 �! 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M n c y w W ^ 0 a a t§h y # M S c m a w v � a' pc} a W N a V •"' P F+ 0 t,� q a A to td a H n '4 V g W n H o '" mat LI a County: TRANSYLVANIA Sample ID: AB62034 River Basin �0 V'JAr�9Q ( PO Number# ARID Report To AROSP �O G +�JI Date Received: 08/12/2010 Time Received: 08:00 Collector: K HAYNES p C Labworks LoginlD KJIMISON Region: ARO fl� !'' Report Generated: 8/20110 Sample Matrix: Date Reported: 08/20/2010 Loc.Type: EFFLUENT Emergency Yes/No VisitlD COC Yes/No Loc.Descr.: BRAGG TROUT FARM Location ID: BRAGG TROUT FARM Collect Date: 08/11/2010 Collect Time: 14:35 Sample Depth Result Method . Analysis Validated by CAS# Analyte Name PQL Qualifier Units Reference Date Others Sample temperature at receipt by lab 3.2 °C 8112/10 SMATHIS BOD,5-Day in liquid 2 2.0 U mg/L APHA5210B 8/12/10 CGREEN Residue—Suspended in liquid 6.2 6.2 U mg/L APHA2540D-20th 8/18/10 CGREEN FlhtV rNyy ' - - 1 - C� AUG WAlEPrtltJr�lli); 5' tiTICN _... {. \o p D e Laboratory Section>>1623 Mail Service Center,Raleigh,NC 27699.1623 (919)733-3908 For a detailed description of the qualifier codes refer tog/portal_nrd,,_enr;ntAvQb,!w,gilaU/stTffnt}i;Jechassjstp�ala„(�yialifier CnA,e„s<htlp:0Eu1(tal;pglencgirAtvrehn�xlli;fplst?ffnfr�it,chassiyt>, Page 1 of 1 1� 05 ' NCDENR North Carolina Department of Environment and Natural Resources Division of Water Quality Michael F. Easley, Governor William G. Ross,Jr., Secretary Coleen H.Sullins, Director July 30,2007 Richard W. Bragg HC 73 Box 659 Balsam Grove,NC 28772-9618 Subject: Renewal of coverage/General Permit NCG530000 Bragg Trout Farm Certificate of Coverage NCG530066 Transylvania County Dear Permittee: In accordance with your renewal application [received on January 22,20071,the Division is renewing Certificate of Coverage(CoC)NCG530066 to discharge under NCG530000. This CoC is issued pursuant to the requirements of North Carolina General Statue 143-215.1 and the Memorandum of Agreement between North Carolina and the US Environmental Protection agency dated May 9, 1994 [or as subsequently amended]. If any parts,measurement frequencies or sampling requirements contained in this General Permit are unacceptable to you,you have the right to request an individual permit by submitting an individual permit application. Unless such demand is made,the certificate of coverage shall be final and binding. Please take notice that this Certificate of Coverage is not transferable except after notice to the Division. The Division may require modification or revocation and reissuance of the certificate of coverage. Contact the Asheville Regional Office prior to any sale or transfer of the permitted facility. Regional Office staff will assist you in documenting the transfer of this CoC. This permit does not affect the legal requirements to obtain other permits which may be required by the Division of Water Quality or permits required by the Division of Land Resources, Coastal Area Management Act or any other Federal or Local governmental permit that may be required. If you have any questions concerning the requirements of the General Permit,please contact Joe Corporon [919 733-5083, extension 597 or joe.corporon@ncmail.net]. Sincerely, (� "w�•> ZfP.14T,,M,,irAF1q.. ' �... n/tlsuagg�,+fiRt'N6 CiA5NLHIt,Y%''G4"((1kM191PA/.'lbRl'3.12`7'Y<R1+Y.h p+.�0":n�'p for Coleen H. Sullins w cc Central Files 1 _ Asheville Regional_Office/Surface Water Protectio NPDES file �. FJUL- L 3 1 2007 l f - - i - r 1617 Mail Service Center,Raleigh,North Carolina 276991617 ASI EVILLt„[3rGIONAL OFFICE r Vne - ; 512 North Salisbury Street,Raleigh,North Carolina 27604 OrthCarollna Phone: 919 733-5083/FAX 919 733-071 9/Internet:www.ncwaterquality.org An Equal Opportunity/Affirmative Action Employer—50%Recycled/10%Post Consumer Paper STATE OF NORTH CAROLINA DEPARTMENT OF ENVIRONMENT AND NATURAL RESOURCES DIVISION OF WATER QUALITY GENERAL PERMIT NCG530000 CERTIFICATE OF COVERAGE NCG530066 DISCHARGE SEAFOOD PACKING & RINSING, FISH FARM AND SIMILAR WASTEWATERS UNDER THE NATIONAL POLLUTANT DISCHARGE ELIMINATION SYSTEM In compliance with the provision of North Carolina General Statute 143-215.1,other lawful standards and regulations promulgated and adopted by the North Carolina Environmental Management Commission, and the Federal Water Pollution Control Act, as amended, Richard W.Bragg is hereby authorized to discharge trout farm wastewater from a facility located at Bragg Trout Farm Old Wagon Rd Transylvania County to receiving waters designated as Tucker Creek in subbasin 04-03-01 of the French Broad River Basin in accordance with the effluent limitations,monitoring requirements, and other conditions set forth in Parts I, II, III and IV hereof. This certificate of coverage shall become effective August 1, 2007. This Certificate of Coverage shall remain in effect for the duration of the General Permit. Signed this day July 30, 2007. for Coleen H. Sullins, Director Division of Water Quality By Authority of the Environmental Management Commission FqCDENR North Carolina Department of Environment and Natural Resources Division of Water Quality Michael F. Easley, Governor William G. Ross,Jr.,Secretary Coleen H.Sullins, Director July 30,2007 Charles H. Ziegler 615 Catheys Creek Rd Brevard,NC 28712 Subject: Renewal of coverage/General Permit NCG530000 High Valley Trout Farm Certificate of Coverage NCG530064 Transylvania County Dear Permittee: In accordance with your renewal application [received on January 22,20071,the Division is renewing Certificate of Coverage(CoC)NCG530064 to discharge under NCG530000. This CoC is issued pursuant to the requirements of North Carolina General Statue 143-215.1 and the Memorandum of Agreement between North Carolina and the US Environmental Protection agency dated May 9, 1994 [or as subsequently amended]. If any parts,measurement frequencies or sampling requirements contained in this General Permit are unacceptable to you,you have the right to request an individual permit by submitting an individual permit application. Unless such demand is made,the certificate of coverage shall be final and binding. Please take notice that this Certificate of Coverage is not transferable except after notice to the Division. The Division may require modification or revocation and reissuance of the certificate of coverage. Contact the Asheville Regional Office prior to any sale or transfer of the permitted facility. Regional Office staff will assist you in documenting the transfer of this CoC. This permit does not affect the legal requirements to obtain other permits which may be required by the Division of Water Quality or permits required by the Division of Land Resources,Coastal Area Management Act or any other Federal or Local governmental permit that may be required. If you have any questions concerning the requirements of the General Permit,please contact Joe Corporon [919 733-5083, extension 597 or joe.corporon@ncmail.net]. Sincerely, ��j S �e`YYR"146)1M1c+.xJflN+..warpW.AxF'/�VrvMh !?Yxf.l l.vM.:y'rifAMN �Y•+ for Coleen H. Sullins y 4' cc: Central Files shevIlle Re onal Office/Surface Water protectio J U L 3 1 2007 NPDES file y WATER QUALITY SECTION ASHEVILLE REGIONAL OFFICE -} `'fdR 1`uY,17.siXrAwiGruvev,v...w,,....... ........... •1 4'+-+�dr pia ie.rrr>}a s. 1617 Mail Service Center,Raleigh,North Carolina 27699-1617 One 1 512 North Salisbury Street,Raleigh,North Carolina 27604 NorthCarohna Phone: 919 733-5083/FAX 919 733-071 9/Internet:www.ncwaterquality.org Nah(rally An Equal Opportunity/Affirmative Action Employer—50%Recycled/10%Post Consumer Paper STATE OF NORTH CAROLINA DEPARTMENT OF ENVIRONMENT AND NATURAL RESOURCES DIVISION OF WATER QUALITY GENERAL PERMIT NCG530000 CERTIFICATE OF COVERAGE NCG530064 DISCHARGE SEAFOOD PACKING & RINSING, FISH FARM AND SIMILAR WASTEWATERS UNDER THE NATIONAL POLLUTANT DISCHARGE ELIMINATION SYSTEM In compliance with the provision of North Carolina General Statute 143-215.1, other lawful standards and regulations promulgated and adopted by the North Carolina Environmental Management Commission, and the Federal Water Pollution Control Act,as amended, Charles H. Ziegler is hereby authorized to discharge trout farm wastewater from a facility located at High Valley Trout Farm 615 Catheys Creek Rd Transylvania County to receiving waters designated as Glady Fork in subbasin 04-03-01 of the French Broad River Basin in accordance with the effluent limitations, monitoring requirements, and other conditions set forth in Parts I, II, III and IV hereof. This certificate of coverage shall become effective August 1, 2007. This Certificate of Coverage shall remain in effect for the duration of the General Permit. Signed this day July 30, 2007. for Coleen H. Sullins, Director Division of Water Quality By Authority of the Environmental Management Commission &FIRIAVA� ' NCDENR North Carolina Department of Environment and Natural Resources Division of Water Quality - Michael F. Easley, Governor William G. Ross,Jr., Secretary Alan W. Klimek, P.E., Director January 11,2007 Dick Bragg Bragg Trout Farm HC 73,Box 659 Rosman,NC 28772-9618 Subject: Renewal Notice/General Permit NCG530000 Certificate of Coverage NCG530066 Transylvania County Dear Permittee: You are receiving this notice because you currently operate a fish farm or fish packing/rinsing facility covered under the subject General Permit. NCG530000 will expire on July31,2007. Federal(40 CFR 122.41) and North Carolina(15A NCAC 2H.0105(e))regulations require that permit renewal applications be filed at least 180 days prior to expiration of the current permit. To satisfy this requirement,the Division must receive a renewal request postmarked no later than February 1,2007. The Certificate of Coverage(CoC)specific to your property was last issued on August 2,2002. The Division needs information from you to determine if coverage under NCG550000 is still necessary. If your property still has a wastewater system like the ones described in the enclosed Technical Bulletin,you must renew the subject CoC. If you are not sure what type of system your property has,contact Keith Haynes in the NC DENR Asheville Regional Office at(828)296-4500. That person [or other staff members] can help you determine if you should renew your CoC ➢ If you know that your facility no longer discharges to a waterbody,contact me at the address or phone number listed below to request rescission of the CoC. The attached application form shows the information the Division has on file for your property. Please verify that the provided information is correct, or make corrections on the form. Complete the additional questions,then sign and date the form. The completed form should be submitted to the address listed below the signature block. If you have any questions concerning this matter,please contact me at the telephone number or e-mail address listed below. (If it is difficult to reach me,please be aware that your facility is one of over 1400 that I am contacting regarding the renewal of several General Permits.) Thanks for your attention to this matter. Sincerely, Charles H.Weaver,Jr, l l.� # JINN 1 7 2007 NPDES Unit l cc: Central Files [WA T i(.)UA1_IT r ..L ,I IUHi 1heville Regional-Office_i Keith Haynes NPDES file t 'IIA:i':;SV.,EIt+-F tifeA':Yb6I:k9h,'ats;:tlnw L Y-.zv..xik G' . .i.:L.':..- 1617 Mail Service Center,Raleigh,North Carolina 27699-1617 One 1 1 512 North Salisbury Street,Raleigh,North Carolina 27604 N Carolina Phone: 919 733-5083,extension 511/FAX 919 733.0719/charles.weaver@ncmail.net ����a `�/� An Equal Opportunity/Affirmative Action Employer—50%Recycled/10%Post Consumer Paper i B � i HC 73,Box 659 r Trout Faun Rosman,NC 28772-9618 Tel:828-877-5574 March 23,2000 Forrest Westall DWQ Asheville Regional Office Interchange Building 59 Woodfin Place Asheville,NC 28801 Dear Mr.Westall: As of November 20, 1998, 1 purchased the trout production facility formerly known as Trigo Trout Company in Balsam Grove,Transylvania County, and have been operating under the name above. I am not sure what information is required to transfer the General NPDES Permit from Trigo Trout Company to my name, but should any be required, please contact me at the address or telephone number above. Sincerely, Richard Bragg Owner/Manager 4 iE State of North Carolina Department of Environment and Natural Resources Division of Water Quality Michael.F. Easley, Governor William G. Ross Jr., Secretary NCDENR Gregory J. Thorpe, Ph.D., Acting Director NORTH CAROLINA DEPARTMENT OF ENVIRONMENT AND'NATURAL RESOURCES 4/23/2002 CERTIFIED MAIL MAY RETURN RECEIPT REQUESTED j ATTN: CHARLES ZIEGLER TRIGO TROUT COMPANY,INC. 615 CATHEY'S CREEK RD BREVARD, NC 28712 Subject: NOTICE OF VIOLATION FAILURE TO SUBMIT RENEWAL APPLICATION TRIGO TROUT COMPANY,INC. NCG530000 COC NUMBER NCG530066 TRANSYLVANIA COUNTY Dear Permittee: This letter is to inform you that,as of the date of this letter,the Division of Water Quality has not received a renewal request for the subject permit certificate of coverage. This is a violation of NCGS§143.215.1 (c)(1)which states"All applications shall be filed with the commission at least 180 days in advance of the date on which it is desired to commence the discharge of wastes or the date on which an existing permit expires,as the case may be". Any permittee that has not requested renewal at least 180 days prior to expiration or permittee that does not have a permit after the expiration and has not requested renewal at least 180 days prior to expiration,will be subjected to enforcement procedures as provided in NCGS §143-215.6 and 33 USC 1251 et.seq. In order to prevent continued,escalated action,including the assessment of civil penalties you must submit a completed permit coverage renewal application to the attention of the"Stormwater and General Permits Unit"at the letterhead address within ten(10)days of your receipt of this letter(renewal application enclosed). If the subject discharge has been terminated,please complete the enclosed rescission request form. Mailing instructions are listed on the bottom of the rescission request form. You will be notified when the rescission process has been completed. Thank you for your prompt attention to this situation. If you have any.questions regarding this matter,please contact Aisha Lau of the central office Stormwater and General Permits Unit at 919-733-5083,ext.578. Sincerely, for Gregory J.Thorpe,Ph.D. Acting Director,Division of Water Quality cc: Stormwater and General Permits Unit Files Central Files Asheville Regional Office 1617 Mail Service Center, Raleigh, North Carolina 27699-1617 Telephone 919-733-5083 FAX 919-733-9919 An Equal Opportunity Affirmative Action Employer 50%recycled/10%post-consumer paper State of North Carolina Department of Environment • and Natural Resources f Division of Water Quality Michael F. Easley, Governor William G. Ross Jr., Secretary NCDENR Alan W. Klimek, P.E., Director NORTH CAROLINA DEPARTMENT OF ENVIRONMENT AND NATURAL RESOURCES August 1,2002 DICK BRAGG BRAGG TROUT HC73 BOX 659 FARM r�(/G � � 700? ROSMAN, NC 287729618 Subject: Reissue-NPDES Wastewater Discharge Permit Bragg Trout Farm COC Number NCG530066 Transylvania County Dear Permittee: In response to your renewal application for continued coverage under general permit NCG530000,the Division of Water Quality(DWQ)is forwarding herewith the reissued wastewater general permit Certificate of Coverage (COC). This COC is reissued pursuant to the requirements of North Carolina General Statute 143-215.1 and the Memorandum of Agreement between the state of North Carolina and the U.S.Environmental Protection Agency, dated May 9, 1994(or as subsquently amended). The following information is included with your permit package: * A copy of the Certificate of Coverage for your treatment facility * A copy of General Wastewater Discharge Permit NCG530000 * A copy of a Technical Bulletin for General Wastewater Discharge Permit NCG530000 Your coverage under this general permit is not transferable except after notice to DWQ. The Division may require modification or revocation and reissuance of the Certificate of Coverage. This permit,does not affect the legal requirements to obtain other permits which may be required by DENR or relieve the permittee from responsibility for compliance with any other applicable federal,state,or local law rule,standard,ordinance,order,judgment,or decree. If you have any questions regarding this permit package please contact Aisha Lau of the Central Office Stormwater and General Permits Unit at(919)733-5083,ext.578 Sincerely, for Alan W.Klimek,P.E. cc: Central Files Stormwater&General Permits Unit Files Asheville Regional Office 1617 Mail Service Center, Raleigh, North Carolina 27699-1617 Telephone 919-733-5083 FAX 919-733-0719 An Equal Opportunity Affirmative Action Employer 50%recycled/10%post-consumer paper State of North Carolina Department of Environment, Health and Natural Resources A � Division of Water Quality James B. Hunt, Jr., Governor Jonathan Howes, Secretary E ��� A. Preston Howard Jr. P. E., Director Ju , 1997 Charles Ziegler 1998 Trigo Trout Company,Inc. —pp 615 Cathey's Creek Road SHEUILLE RAlil SECTFO Brevard,NC 28712 Subject: Certificate of Coverage No. NCG530066 Renewal of General Permit Trigo Trout Company,Inc. Transylvania County Dear Permittee: In accordance with your application for renewal of the subject Certificate of Coverage, the Division is forwarding the enclosed General Permit. This renewal is valid from the effective date on the permit until July 31,2002. This permit is issued pursuant to the requirements of North Carolina General Statute 143-215.1 and the Memorandum of Agreement between North Carolina and the U.S.Environmental Protection Agency dated December 6,1983. If any parts,measurement frequencies or sampling requirements contained in this permit are unacceptable to you,you have the right to request an individual permit by submitting an individual permit application.Unless such demand is made, this certificate of coverage shall be final and binding. f The Certificate of Coverage for your facility is not transferable except after notice to the Division. Use the enclosed Permit Name/Ownership Change form to notify the Division if you sell or otherwise transfer ownership of the subject facility. The Division may require modification or revocation and reissuance of the Certificate of Coverage. If your facility ceases discharge of wastewater before the expiration date of this permit, contact the Regional Office listed below at (704) 251-6208. Once discharge from your facility has ceased, this permit may be rescinded. This permit does not affect the legal requirements to obtain other permits which may be required by the Division of Water Quality,the Division of Land Resources, Coastal Area Management Act or any other Federal or Local governmental permit that may be required. If you have any questions concerning this permit,please contact the NPDES Group at the address below. Sincerely, i,,,• Y A.Preston Howard,Jr.,P.E. cc: Central Files �fi��Jte�ille_�Re'giona170ffic NPDES File Facility Assessment Unit _J P.O. Box 29535, Raleigh,North Carolina 27626-0535 (919) 733-5083 FAX(919)733-0719 p&e@dem.ehnr.state.nc.us An Equal Opportunity Affirmative Action Employer 50% recycled /10%post-consumer paper STATE OF NORTH CAROLINA DEPARTMENT OF ENVIRONMENT, HEALTH, AND NATURAL RESOURCES DIVISION OF WATER QUALITY GENERAL PERMIT NO. NCG530000 ,r CERTIFICATE OF COVERAGE NO. NCG530066 TO DISCHARGE WASTEWATER FROM FISH FARMS, SEAFOOD PACKING & RINSING AND SIMILAR WASTEWATERS UNDER THE NATIONAL POLLUTANT DISCHARGE ELIMINATION SYSTEM ate - In compliance with the provision of North Carolina General Statute 143-215.1, other lawful standards and regulations promulgated and adopted by the North Carolina Environmental Management Commission, and the Federal Water Pollution Control Act,as amended, Trigo Trout Company, Inc. is hereby authorized to operate a facility which discharges wastewater from a fish farm or from seafood packing &rinsing operations and similar wastewaters from a facility located at 615 Cathey's Creek Road Brevard y Transylvania County to receiving waters designated as subbasin 40301 in the French Broad River Basin in accordance with the effluent limitations,monitoring requirements, and other conditions set forth in Parts I,II,III and IV of General Permit No. NCG530000 as attached. This certificate of coverage shall become effective August 1, 1997. This certificate of coverage shall remain in effect for the duration of the General Permit. Signed this day July 23, 1997. I,/_,� /A. Preston Howard,Jr., P.E., Director DivisionY of Water Quality By Authority of the Environmental Management Commission —) -.�cate of North Carolina Department of Environment, Health and Natural Resources A • • Division of Environmental Management James B. Hunt, Jr., Governor ftwoofty Jonathan B. Howes, Secretary ® C A..Preston Howard, Jr., P.E., Director G�7 September 30,1993 CHARLES ZIEGLER TRIGO TROUT COMPANY,INC. 615 CATHEY'S CREEK ROAD BREVARD NC 28712 Subject: TRIGO TROUT COMPANY,INC. Certificate of Coverage NCG530066 General Permit NCG530000 Formerly NPDES Permit NCO078751 TransylvaniaCounty Dear Permittee: The Division of Environmental Management has recently evaluated all existing individual permits for potential coverage under general permits currently issued by the Division. 15A N.C.A.C.2H.0127 allows the Division to evaluate groups of permits having similar discharge activities for coverage under general permits and issue coverage where the Division finds control of the discharges more appropriate in this manner. The Division,has determined that the subject discharge qualifies for such coverage. Therefore,the Division is hereby issuing the subject Certificate of Coverage under the state-NPDES general permit no. NCG530000 which shall void NPDES Permit NC0078751. This Certificate of Coverage is issued pursuant to the requirements of North Carolina and the US Environmental Protection Agency Memorandum of Agreement dated December 6,1983 and as subsequently amended. If any parts,measurement frequencies or sampling requirements contained in this general permit are unacceptable to you,you have the right'to submit an individual permit application,associated processing fee and letter requesting coverage under an individual permit. Unless such demand is made,this decision shall be final and binding. Please take notice this Certificate of Coverage is not transferable. Part II, E.4. addresses the requirements to be followed in case of change of ownership or control of this discharge. In the event that the facilities fail to perform satisfactorily, including the creation of nuisance conditions, the Permittee shall take immediate corrective action,including those as may be required by this Division,such as the construction of additional or replacement wastewater treatment or disposal facilities. Construction of any wastewater treatment facilities will require issuance of an Authorization to Construct from this Division. Failure to abide by the requirements contained in this Certificate of Coverage and respective general permit may subject the Permittee to an enforcement action by the Division of Environmental Management in accordance with North Carolina General Statute 143-215.6A to 143-215.6C. Please note that the general permit does require monitoring in accordance with federal law. The monitoring data is not required to be submitted to the Division unless specifically requested,however,the permittee is required to maintain all records for a period of at least three (3) years. Post Office Box 29535,Raleigh,North Carolina 27626-0535 Telephone(919)733-5083 FAX(919)733-9919 An Equal Opportunity Affirmative Action Employer 50%recycled-10%post-consumer paper Page 2 CHARLES ZIEGLER TRIGO TROUT COMPANY,INC. Certificate of Coverage No. NCG530066 The issuance of this Certificate of Coverage is an administrative action initiated by the Division of Environmental Management and therefore,no fees are due at this time. In accordance with current rules,there are no annual administrative and compliance monitoring fees for coverage under general permits. The only fee you will be responsible for is a renewal fee at the time of renewal. The current permit expires July 31,1997. This coverage will remain valid through the duration of the attached general permit. The Division will be responsible for the reissuance of the general permit and at such time,you will be notified of the procedures to follow to continue coverage under the reissued permit. Unless you fail to follow the procedures for continued coverage,you will continue to be permitted to discharge in accordance with the attached general permit. The issuance of this Certificate of Coverage does not preclude the Permittee from complying with any and all statutes,rules,regulations,or ordinances which may be required by the Division of Environmental Management or permits required by the Division of Land Resources,the Coastal Area Management Act or any Federal or Local other governmental permit that may be required. If you have any questions or need additional information regarding this matter,please contact either the Asheville Regional Office,Water Quality Section at telephone number 704/ 251-6208,or a review engineer in the NPDES Group in the Central Office at telephone number 919/733-5083. Sincerely, 61W4 ' I A.Preston Howa r.,P.E. cc: Asheville Regional Office Central Files STATE OF NORTH CAROLINA DEPARTMENT OF ENVIRONMENT, HEALTH, AND NATURAL RESOURCES DIVISION OF ENVIRONMENTAL MANAGEMENT GENERAL PERMIT NO. .NCG530000 CERTIFICATE OF COVERAGE No.NCG530066 TO DISCHARGE SEAFOOD PACKING AND RINSING, FISH FARMS AND SIMILIAR WASTEWATERS UNDER THE NATIONAL POLLUNTANT DISCHARGE ELIMINATION SYSTEM In compliance with the provision of North Carolina General Statute 143-215.1, other lawful standards and regulations promulgated and adopted by the North Carolina Environmental Management Commission, and the Federal Water Pollution Control Act, as amended, TRIGO TROUT COMPANY,INC. is hereby authorized to discharge seafood packing and rinsing,fish farm or similiar wastewaters from a } facility located at TRIGO TROUT COMPANY,INC. TransylvaniaCounty to receiving waters designated as the TUCKER CREEK/FRENCH BROAD RIVER BASI in accordance with the effluent limitations,monitoring requirements,and other conditions set forth in Parts I,II, III and IV of General Permit No. NCG530000 as attached. This certificate of coverage shall become effective November 1, 1993. This Certificate of Coverage shall remain in effect for the duration of the General Permit. Signed this day, September 30, 1993. Preston Howar ,, r.,P.E.,Director Division of Environmental Management By Authority of the Environmental Management Commission f �....� 4 1993 State of North Carolina ,Department of Environment, Health and Natural ResQu�?' ��, 11�FU�bT SITTI ON Division.of Environmental Management 512 North Salisbury Street-Raleigh,North Carolina 27604 James B.Hunt,Jr.,Governor A.Preston Howard,Jr.,P.E. Jonathan B.Howes,Secretary Director April 5, 1993 Charles Ziegler High Valley Trout Hatchery 615 Cathey's Creek Road Brevard, NC 28712 Subject: Return of Incomplete Application Trigo Trout Farm NCO078751 Transylvania County Dear Mr Ziegler. In accordance with Division policy,we must hereby return as incomplete the attached application and associated material received on. It lacks the following items: -� -Three sets of plans and specifications signed and sealed by a professional engineer. -Three copies of the completed and signed application form. ✓ -Permit application processing fee of$200.00. -Three copies of the Engineering Alternatives Analysis (instructions enclosed) -Priority Pollutant Analysis -Other Items: After you have obtained-the checked items,you may resubmit your application for review. Please submit all the items returned to you and the checked items in one package. If you have any questions,please contact me or one of my staff at(919)733-5083. Please specify if your questions on the project are about wastewater discharge or stormwater-NPDES incerely, cc: Asheville Regional Office leen P. E s NPDES File NPDES Group Supervisor Regional Offices Asheville Fayetteville Mooresville Raleigh Washington Wilmington winaton-Salem 704/251-6208 919/486-1541 704/663.1699 919/571-4700 919/946.6481 9191395.3900 919/896-7007 Pollution Prevention Pays P.O.Box 29535,Raleigh,North Carolina 27626-0535 Telephone 919-733-7015 An Equal Opportunity Affirmative Action Employer tV41I.r;r Qia,�lhly S,Sction � .. _.— c-h"J cito �Ashc ripe, 1,:na [OCT 22 1990 �J IV OFENVIRON, ENTALN,ANAt Iil Rateigh• NC 1 } L 0"!6 lk-� 1 �b. �-^"'° f .+►�.l�Q/�• LJ`1 j- ,r r �'�^-ca�� �-,�,,,�..-:...� t..�.�=�^� c.<.`y ��� c_�A,� c_e�•�-_fin--�s-Q fie.,` cV 5�_✓ i.2 } �� za�-1 z ^ram sic �- Date March 16, 1990 NPDES STAFF REPORT AND RECOMMENDATIONS County: Transylvania NPDES Permit No.NC0078751 PART I - GENERAL INFORMATION 1. Facility and Address: Trigo Trout Company 615 Catheys Creek Road Brevard, N.C. 28712 2. Date of Investigation: Fall 1989 3. Report Prepared By: Gary T. Tweed, P.E 4. Persons Contacted and Telephone Number: Charles H. Ziegler 704/883-3951 5. Directions to Site: The existing facility is located north 0. 5 mile from the intersection of N.0 Highway 215 and NCSR 1379 on NCSR 1379. 6. Discharge Point - Latitude: 35-12-25 Longitude: 82-51-10 Attached a USGS Map Extract and indicate treatment plant site and discharge point on map. USGS Quad No. or USGS Quad Name Rosman 7. Size ( land available for expansion and upgrading) : Several Acres 8. Topography (relationship to flood plain included) : Rolling to Steep. 9. Location of nearest dwelling: N/A 10. Receiving stream or affected surface waters: Tucker Creek a. Classifications: C Trout b. River Basin and Subbasin No. 04-03-01 C. Describe receiving stream features and pertinent downstream uses: Rural Drainage. PART II - DESCRIPTION OF DISCHARGE AND TREATMENT WORKS 1. Type of wastewater: % Domestic % Industrial 100 % Trout Farm Water a. Volume of Wastewater: 6000 GPM b. Types and quantities of industrial wastewater: N/A C. Prevalent toxic constituents in wastewater: d. Pretreatment Program (POTWs only) in development approved should be required not needed 2. Production rates (industrial discharges only) in pounds a. highest month in the last 12 months b. highest year in last 5 years 3 . Description of industrial process (for industries only) and applicable CFR Part and Subpart: 4. Type of treatment (specify whether proposed or existing) : It is proposed to continue the operation of the existing trout hatchery which discharges directly to Tucker Creek. 5. Sludge handling and disposal scheme: Since this facility does not collect solids no sludge is generated. 6. Treatment plant classification: N/A 7. SIC Code( s) 0279 Wastewater Code( s) 25 i 1 PART III - OTHER PERTINENT INFORMATION 1. Is this facility being constructed with Construction Grants Funds (municipals only) ? No 2. Special monitoring requests: 3 . Additional effluent limits requests: 4. Other: PART IV - EVALUATION AND RECOMMENDATIONS Trigo Trout Company submitted the Division Trout Farm Questionnaire indicating that the facility was producing more than 20,000 pounds per year and feeding more than 5,000 pounds of feed in maximum month of feeding. This level requires issuance of a NPDES Permit. It is recommended that a permit be drafted for this operation in accordance with trout farm permitting procedures previously developed. It is intended for all trout farm permits to be issued at the same time scheduled for later this year. Signature Report Preparer a er ualit egional Supervisor i o qW ),I Jj m0 \3) BM LR 725 486 f�q , \�/ I1V V �I 10 (l\' l\ Wr n /1 i``t l ', � 'goo � �.� n lv+-.,�'�f� �� /�\ �l� �� � ,> � 1� • 3900 <, p �•`�. ?B�• ��;.,� ;�/ a 6c 38 99 0 � _ /f�s— Tueker 'i �� �� 7 3898 ?oJ 12'30" , 3897 o wer f 2-00 J- jr ` 3896 �J( l�/� II 'i I \� 0 .. '\ / �r�il�li i O g LR 30 r h Q O_ l�,l .- --- 3000, \A r STATE OF NORTH.CAROLINA ) COMMERCIAL&RESIDENTIAL LEASE AGREEMENT COUNTY OF TRANSYLVANIA ) WITH OPTION TO PURCHASE This COMMERCIAL & RESIDENTIAL LEASE AGREEMENT WITH OPTION TO PURCHASE, (hereinafter "Lease" or "Agreement") made and entered into this the �_ day of June, 2009, by and between CHRISTOPHER E. SELLE, Legally Divorced, of Transylvania County, North Carolina, and MARGARET N. SELLE, Legally Divorced, of 'c� County, North Carolina (hereinafter mutually referred to herein as "Landlord"), and Mattwill, LC, a limited liability company duly formed and validly existing under the laws of the state of Florida,(hereinafter called "Tenant"); WITNESSETH: THAT subject to the terms and conditions hereinafter set forth, said Landlord does hereby let and lease unto said Tenant exclusively, and said Tenant does hereby accept as tenant of said Landlord, a certain'tract or parcel of land, lying and being in Eastatoe Township, Transylvania County, consisting of approximately 9.57 acres, shown as Tracts 2 and 3, on that certain survey recorded in Plat File 4 at Slide 548 in the Transylvania County Registry (attached hereto as Exhibit "A", the terms of which are incorporated herein by reference as if fully set forth herein), being a portion of that land which is more particularly described within a deed thereof to Landlords recorded at Book 313, Page 459 in the Transylvania County Registry(attached hereto as Exhibit"B",the terms of which are incorporated herein by reference as if fully set forth herein), and which land is otherwise and commonly known to the public as Cantrell Creek Trout Farm and Hatchery which includes a dwelling house thereon together with a fish farm thereon, and all the reasonably necessary fish farming equipment to operate a trout fish farm. (hereinafter mutually referred to as the"Property") The terms and conditions of this Lease are as follows: 1. TERM/RENT/USE: a. Term of Lease: Unless otherwise extended by written agreement signed by the parties hereto, or sooner terminated by the prior sale and purchase of said premises to Tenant only, as hereinafter set forth, Tenant shall take possession of the property on or before June 1, 2009 and the term of such lease shall continue for a period of twelve(12)months ending on June 1, 2010. (the "Lease Term"which definition shall include any extension entered into between the parties hereof) b. Rental Payments: Beginning on the date of possession above and during any Lease Term hereunder, Tenant shall pay the.Landlord the sum of One Thousand Eight Hundred Seventy Five Dollars ($1875.00) per month as rent.on the aforesaid premises; this includes $1225.00 for the property, $400.00 for the oxygen lease, $160.00 for insurance and $90.00 for the intake lease,with the first monthly payment being due at the time of the execution of this document and then on the ls` day of each month beginning the 1" day of July,2009. i. The Rental Payments shall be made payable to: Christopher E. Sell e at the following location: 9(4� v�Gv�1 NJ 14JC. ii. The Tenant will,without any previous demand therefor, pay the rent at the times and in the manner above provided, and that the Lessor shall have a lien upon all Mattwill/selle_ Comm/Res Lease.w/Option Page 1 of 8 of the property of the Tenant at any time placed in or being situated within the premises hereby leased and as hereinbefore described for the security of the payment of the said rent as the same shall become due as hereinbefore specified, and that in the event of failure on the part of the Tenant to pay said rent in accordance with the terms of this Lease and agreement,the Lessor may forthwith take possession of the property hereby leased and foreclose the lien hereby created, as is provided by law for the. foreclosure of chattel mortgages or conditional sales of personal property. iii. The sale of the Property to.Tenant prior to the expiration of the Lease Term shall result in a termination of this Lease without any additional rents being due or owed by Tenant thereafter. A pro-ration of rents due and owed as of the date of closing shall be paid on or before closing to Landlord. iv. Savings Provisions: 1. Unless otherwise specifically stated herein, in no event shall either party be entitled to terminate this lease for.a breach hereof by the other parry unless it. has: (i.) first provided written notice to the breaching party containing a written statement of each and every condition alleged to have caused such a breach,and a statement of the non-breaching party as to its intent to terminate the Lease if such conditions are not cured within the curative period set forth herein, and (ii.) allowed the breaching party a curative period of seven (7) days following the receipt of such written notice, to cure or remove any such condition alleged to cause a breach hereof, which if so cured or removed within the curative period shall prevent the non-breaching party from terminating this lease for a breach hereof based upon such conditions. 2. Notwithstanding anything herein to the contrary, Landlord shall be deemed to have waived its right to hold Tenant in breach of.this Agreement and otherwise terminate the same, where Landlord subsequent to such termination accepts from Tenant additional rents for periods following such termination and continues to allow Tenant.to occupy and use the leased Property. This provision is intended as a savings provision and shall bar Landlord from claiming that Tenants breach hereof waived its right to otherwise exercise the Option to Purchase given hereunder, which option shall remain in full force and effect notwithstanding a termination hereof where Landlord continues to allow Tenant to occupy and use the Property following such default and has otherwise been compensated by Tenant for,the rent payable to Landlord during such continued,use and occupancy. c. Surrender of Premises: Upon the expiration of any Lease Term hereunder or upon Landlord's termination of this Agreement pursuant to a breach hereof by Tenant, Tenant shall immediately surrender possession of the Property to Landlord or its agent and deliver said property into the possession of said Landlord or its agent in as good condition as the same now is, ordinary wear and tear excepted; d. Residential Use of Property: The leased property contains one primary dwelling . house for residential purposes the exclusive right to possession, use, and enjoyment of which is leased by Landlord to Tenant hereunder. e. Commercial Usage of Property and Equipment: The leased Property contains a currently operated commercial trout farm and hatchery,the continued and exclusive operation,use, and enjoyment of which by Tenant, is expressly consented to and authorized hereunder subject to any terms and conditions set forth herein. £ Lease of Commercial Equipment: As part of this Agreement, Landlord is also leasing to Tenant the exclusive right to use,operate, and enjoy all existing improvements, fixtures, equipment, and other non-disposable materials (which are.not otherwise part of the inventory being purchased by Tenant hereunder or by separate agreement) and which are affixed to or otherwise located upon the Property as of June 1, 2009, with the exception of an Isuzu truck the possession and use of which is retained by Landlord notwithstanding such truck's presence upon the Property leased hereunder. A non exclusive itemization of,such commercial equipment being leased hereunder is attached Mattwill/Selle Comm/Res Lease w/Option Page 2 of 8 I hereto and incorporated herein by reference as Exhibit"C". Landlord warrants that such equipment is not currently encumbered by any lien, security interest, collateral agreement, or otherwise,and that no such encumbrance shall be placed thereupon during the Lease Term hereof. 2. PURCHASE OF CERTAIN INVENTORY. LOCATED UPON PROPERTY TO USE IN CONNECTION THEREWITH: a. Qualified Definition of"Landlord"Herein: The parties agree that the term "Landlord" as used within this Section Two (2) of the Lease only, where pertaining to any rights or obligations of any party herein as to inventory purchased hereunder and as distinguished from real property, shall apply only to Christopher E. Selle and not to Margaret N. Selle. b. Initial Inventory Statement and Purchase: The enforceability of this Lease is contingent upon Tenant's agreement to purchase from Landlord that certain disposable inventory existing upon the Property as of June lst, 2009 which is more particularly described within a Statement of Inventory attached hereto and incorporated herein by reference as Exhibit"D", and which inventory shall be purchased by the Tenant from the Landlord at the following prices: i. Fair market value (the local going commercial rate as of the date of inventory, and as particularly stated within Exhibit "D") shall be paid for the following inventory: (i)propane, (ii)liquid 02,(iii.)chemicals, (iv.) salt and(v.)fish feed; ii. All fish which are 10 inches and over shall be purchased for$1.25/lb; iii. All fish 10 inches and under shall be purchased for$1.50/lb. c. Payment for Initial Inventory: All inventory whatsoever being purchased hereunder is identified within Exhibit"D"which is also agreed upon between the parties to reflect the complete, accurate, and total purchase price to be paid for the same, which shall be paid for by Tenant in the following manner: i. Tenant shall pay Landlord as a condition precedent to this Lease becoming enforceable,Forty Thousand Dollars($40,000.00)of the total inventory purchase price specified within Exhibit"D" in certified funds at the time of executing this Lease Agreement,and thereafter ii. Tenant shall pay to Landlord in certified funds on or before September 1st, 2009, the entire remaining balance due, if any, defined as the difference between the total inventory purchase price specified within Exhibit "D" and the amount paid towards such price at the time of executing this Lease as stated hereinabove. 1. Upon Tenants initial Forty Thousand Dollar ($40,000.00) payment to Landlord as specified hereinabove, this Lease-shall become binding and enforceable as of the date first stated hereinabove pursuant to the terms and conditions set forth herein. 2. Default.in Second Payment: In the event that Tenant shall fail to make any required second payment towards inventory by the deadline for such payment set forth hereinabove, Landlord may hold Tenant in default of this Lease,. and may terminate this Lease following its compliance with the savings provisions hereof. 3. UCC-1 Statement: In addition to any other remedies of either party hereto,Tenant as a condition precedent to the enforceability of this Lease shall execute concurrently herewith, a UCC-1 form prepared by Landlord which shall secure unto Landlord, by attaching to the Inventory purchased hereunder, the payment by Tenant of the Second Payment, if any, contemplated hereunder, and which shall be deemed satisfied in full upon Tenant's Second Payment as stated hereinabove upon the receipt of which .Landlord shall execute any and all necessary documents to satisfy/remove such UCC-1 form as a matter of title record and otherwise release Tenant from liability arising from such UCC-l. Mattwill/Selle COmm/Rcs Lease w/Option Page 3 of 8 d. Disposal of Inventory Upon Non-Exercise of Option or Termination of Lease: i. If Tenant in its sole discretion fails to exercise its option to purchase the leased Property within the Option Period, and no termination of this Lease has occurred prior to the expiration of such Option .Period, then Tenant shall be solely responsible for arranging for the disposal,sale, or transfer of all inventory in which Tenant claims an ownership interest prior to the date of the natural expiration of this Lease Term, and thereafter shall surrender possession of the Property together with all of Tenant's ownership interest, rights, and title in any inventory remaining upon the Property on the day of such surrender. ii. If this Lease shall be validly terminated as a result of a breach hereof by Landlord, then in such event Tenant shall be entitled in its sole discretion to = remain upon the Property and retain sole possession and use of the same for a period of up to sixty (60) days following the effective termination date (the "Inventory Disposal Period"). During any such Inventory Disposal Period, the terms and conditions of this Lease shall remain in full force and effect except that Tenant shall not be required to pay Landlord any rent during such period and shall be solely responsible for arranging for the disposal, sale, or transfer of all inventory in which Tenant claims an ownership interest prior to the expiration of the Inventory Disposal Period, and thereafter shall surrender possession of the Property together with all of Tenant's ownership interest, rights, and title to any inventory remaining upon the Property on the day of such surrender. iii. If this Lease shall be validly terminated as a result of a breach hereof by Tenant, then in such event,Tenant shall either: (i)pay unto Landlord in certified funds on or before the effective termination date, an amount equal to all remaining rental payments to be made under the Lease Term otherwise remaining in which event Tenant shall be entitled to .a sixty (60) day Inventory Disposal Period in accordance with the terms of the immediately preceding provision in which to provide for the disposal of its inventory; or in the event no such payment is made, shall (ii) be deemed to have forfeited unto Landlord as of the effective day of termination all of Tenant's ownership interest, rights, and title to any such inventory existing upon the Property as of the effective date of termination, and shall thereafter not be entitled to recover the value of any said inventory from Landlord who shall bear the risk of loss upon such inventory. Prior to disposing, selling, or transferring any inventory under an Inventory Disposal Period obtained pursuant to this provision only, except where such disposal, sale, or transfer was contracted for prior to Tenant's receiving notice of Landlord's intent to terminate this Lease, or is otherwise in accordance with Tenant's normal course of business dealings with clients and purchasers of inventory,Tenant shall provide Landlord a written estimate of the inventory existing upon the Property as of the effective date of termination, and shall therewith offer in writing to Landlord a Right of First Refusal to purchase any portion thereof or the entire inventory, which Landlord shall be entitled to purchase at the same prices and in accordance with the same pricing structure as set forth upon Exhibit"D" hereof. Landlord shall within five (5) days thereafter do both of the following to validly exercise its Right of First Refusal: (i)notify Tenant in writing of its acceptance to purchase all or part of the offered inventory, and (ii) place in an escrow account with Neumann & Associates Law Firm, PLLC, subject to the terms of this Agreement, the entire balance of any funds paid unto Landlord by Tenant to obtain the Inventory Disposal Period, or the actual purchase price for such inventory that Landlord chooses to purchase, whichever is smaller. The funds placed in escrow pursuant to this provision shall be handled in accordance with this provision only. Landlord may apply the escrow funds toward any payment price to be paid for the inventory being purchased by Landlord pursuant to this provision as long as the entire purchase price for such inventory is paid by Landlord not less than twenty one (21) days from Landlord's provision of notice to Tenant of its acceptance of the Right of First Refusal hereunder. In the event that Landlord'has not paid the entire purchase price for such inventory by such date, Landlord's Right of First Refusal shall be deemed void and unenforceable against Tenant who may, proceed with otherwise disposing, selling, or transferring the inventory during the.remaining Inventory Disposal Period, and the escrow agent shall immediately pay the escrow funds unto Tenant as compensation for Tenant's delay in otherwise disposing, selling, or transferring the assets, as well as for the cost of ongoing care, maintenance, and general upkeep of the inventory. Landlord shall not thereafter be entitled to apply the Mattwill/Selle Comm/Res Lease w/Option Page 4 of 8 escrow funds toward any subsequent purchase of the inventory. The risk of loss upon the inventory during the Inventory Disposal Period shall remain upon Tenant until Landlord has purchased all of the Inventory by paying the entire purchase price therefore to Tenant, or until the termination of the Inventory Disposal Period, whichever occurs first, provided that in the event Tenant has otherwise disposed of all its inventory(not including any inventory purchased by Landlord pursuant to its Right of First Refusal remaining upon the Property) or otherwise chooses to forfeit its interests,right, and title therein, Tenant may in its sole discretion provide Landlord three (3) days written notice of its'intent to vacate and surrender the Property and may thereafter vacate the Property and inventory remaining thereupon the sole risk of loss upon which inventory shall automatically pass to the Landlord on the fourth day following such written notice. iv. The parties agree to work together in good faith to effectuate any disposal, sale, or transfer of such inventory if the same shall become necessary. For purposes of construing any separate agreement between the parties contingent upon a valid lease being in effect,this Lease shall be deemed to continue in effect between the parties during any such Inventory Disposal Period. 1 INSURANCE: During any Lease. Term hereunder, and including any period of holdover resulting from the continuing use and possession of the Property by Tenant following the otherwise valid expiration or termination of Tenant's Lease Term,the parties agree to each bear 'the sole responsibility for separately maintaining adequate insurance to protect against their own individual and respective loss, damage, destruction, or other casualty events which may occur in relation to their respective interests in and upon the Property. a. By way of illustration only, and not limitation, Tenant shall be solely responsible for insuring against any loss to its inventory including but not limited to fish, as a result of catastrophic or other events, to damage of its own commercial or personal equipment or property which is used or located upon the Property, and for any personal injury or damages sustained upon the Property by its own employees or agents in the course of using said Property or any equipment leased to Tenant hereunder, and shall otherwise be responsible for maintaining adequate general commercial liability insurance to protect itself against potential losses or liability arising from Tenants occupation and use of the Property including equipment leased to Tenant hereunder. b. By way of illustration only and not by way of limitation, Landlord shall be solely responsible for maintaining adequate fire and hazard insurance upon the Property and any improvements or fixtures thereupon, for insuring against. losses or damage to any commercial or personal equipment or property owned by Landlord located upon the Property whether leased to Tenant hereunder or not, for damage or injury sustained to Landlord itself, or Landlord's own agents while upon the Property. c. The parties intent herein is to require that each party maintain adequate insurance to protect their own respective interests in the event of loss or casualty,and in no event shall either party be entitled to hold the other party liable for or otherwise seek compensation from the other party including from any insurance policy of the other party, for any loss, damage, injury, or other casualty event which could have been adequately insured against by the party seeking to impose such liability or recover such compensation, provided however that no bar against liability or reimbursement shall be binding in the event where a party can prove that the loss, damage, injury, or other casualty complained of was proximately caused intentionally or by the gross negligence or willful misconduct of the other party. d. Notwithstanding anything to the contrary herein, during the term of this lease as defined hereinabove, Tenant shall be solely responsible for and shall indemnify Landlord against and hold Landlord harmless from any and all cost, expenses, or claims for personal injury or property damage sustained by third parties upon the Property unless proximately caused by intentional or willful misconduct of Landlord. 4. TAXES: Landlord shall pay all real property taxes upon the Property when due provided that in the event Tenant purchases the property, the property taxes for the year during the year of such purchase shall be pro-rated between Landlord and Tenant as of the day of closing. 5. MAINTENANCE AND UTILITIES: Mattwill/Belle Comm/Res Lease w/Option Page 5 of 8 i a. Tenant shall not make any improvements or repairs, except for necessary repairs to maintain the welfare of fish in inventory upon the premises, on the buildings, equipment or property, or make any changes in the operation of the fish farm without the consent of the Landlord, not to be unreasonably withlield; if the purchase does not take place after the Lease Term, any improvements and repairs made upon the premises shall be considered a part of the real estate and be retained by the Landlord without reimbursement. b. The Tenant shall be responsible for routine and general residential:and commercial upkeep and maintenance related to the Property during the Lease Term including but not limited to maintenance of the grass and grounds, maintaining a safe and clean residential _dwelling,and operation of the fish farm, all of which shall be done in a suitable manner to maintain the same in good condition. Notwithstanding the foregoing, in the event that any non routine maintenance or repairs, including major repairs, are required to maintain the Property in good condition including repairs to major appliances or commercial equipment Leased hereunder, Landlord shall make such repairs at Landlord's sole . expense provided however that in the event any such non routine maintenance or repairs, including major repairs, are required as a proximate result of Tenants intentional misconduct or negligence,Tenant shall make such repairs. i. Emergency Repairs: Notwithstanding the foregoing, in the event any repairs are reasonably required to maintain essential fish farm equipment to protect the welfare, survivability, and value of the fish in inventory, reasonable emergency repairs may be made without Landlord's prior consent and the cost therefore shall be paid in accordance with the immediately foregoing provision. c. Tenant shall also assume the sole: responsibility of payments for all standard utility expenses including any additional fees for transfer of such utilities into Tenant name or for connection or set up fees for such utilities which include but are not limited to: trash pickup, telephone lines (2), DirecTV, electricity, liquid 02 fills and propane fills, all of which shall be paid in full by Tenant prior to vacating the premises pursuant to a termination or the natural expiration of this Lease. 6. OPTION TO PURCHASE LEASED PROPERTY a. Option Fee: For and in exchange of the additional and separate consideration paid from Tenant to Landlord of One Thousand Dollars ($1000.00), Landlord hereby grants unto Tenant an exclusive Option to Purchase the Property Leased hereunder pursuant to the following terms and conditions: b. Escrow of Option Fee: The One Thousand Dollars ($1000.00) paid by Tenant as separate consideration for the Option to Purchase granted herein, shall be placed in escrow with Keller Williams Realty ("ESCROW AGENT") to hold subject to the terms and conditions hereof. L If Tenant shall fail to exercise its Option to Purchase given herein, or this Lease shall be terminated by Landlord for a' breach hereof by Tenant, ESCROW AGENT shall pay the Option Fee to Landlord following the Lease Term hereof, in order to secure unto ESCROW AGENT available funds for the payment of any necessary Appraiser for purposes of establishing inventory to be repurchased by Landlord in accordance with the foregoing provisions of this Lease. ii. If Tenant shall exercise its Option to Purchase, the Option Fee given herein shall become the escrow funds as described within Exhibit E and the payment of such funds thereafter shall be in accord with said Exhibit. c. Option Period: Tenant shall have an exclusive Option to purchase the Property leased..hereunder which Option shall begin upon the day and year first set forth hereinabove and shall continue up until the first (lst) day of April, 2010 (the "Option Period"). d. Valid Exercise option: Tenant shall.exercise its Option, if at all, by providing written notice to Landlord of Tenant's intent to exercise said Option prior to the expiration of the Option Period. Mattwill/Selle Comm/Res Lease w/Option Page 6 of 8 e. Closin>?: Upon Tenant's exercise of its Option to Purchase, the parties shall be legally bound to close upon the Property pursuant to the terms of, and subject to the conditions within, that separate "AGREEMENT FOR PURCHASE AND SALE OF REAL PROEPRTY PURSUANT TO OPTION TO PURCHASE" which agreement is attached hereto and incorporated herein by reference as Exhibit "E", and is executed concurrently herewith by the parties who agree that Tenant's exercising its Option to Purchase in accordance with this Lease is a condition precedent to the enforceability of said separate agreement. f. Memorandum of Option: The parties shall execute concurrently herewith a Memorandum of Option to Purchase document which shall be recorded of record at the Register of Deeds office, Transylvania County,North Carolina, setting forth the essential terms of such Option including the expiration date of the same, and which shall thereby provide notice to all other parties that the Property leased hereunder is subject to said Option as a matter of title record. 7. OTHER PROVISIONS a. Notice: All notices under this agreement shall be in writing, and,shall be deemed to have been duly given on the date of service if served personally on the party to whom the notice is to be given, or if mailed, on the date of deposit with the US Postal Service, to the party to whom notice is to be given by first class mail, postage prepaid, registered or certified, if properly addressed to the party at his address as set forth below, or at such other address as the party may hereafter designate by written notice to the remaining parties: i. Landlord: U eA ii. Tenant: f �. 3� A4 Ck sie_vf, b. Entire Agreement: All prior or contemporaneous understandings and agreements of the parties are integrated and merged into this Agreement and the instruments and agreements specifically referred to herein. No other agreements or understandings exist prior to or contemporaneously with the execution of this Agreement which are not reflected in writing herein at the time of signing. c. Modi rcation: This Agreement maybe amended, modified, superseded, or canceled only by a written instrument executed by all of the parties hereto. d. Waiver: Notice or knowledge of any matter shall not constitute a waiver of any representation or warranty with respect to such matter. The waiver by any party of any breach of any provision shall not be construed as a waiver of any other provision by such party. Each parry shall have the right to waive fulfillment of a condition or covenant or compliance with a representation or warranty of which it is-the beneficiary,-but such waiver may be made.only by written instrument executed by such party. e. Severability: Any provision of this Agreement that is prohibited, 'unenforceable, or not authorized in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition, unenforceability, or non-authorization without invalidating the remaining provisions hereof or affecting the validity, enforceability, or legality of such provision in any other jurisdiction. £ Binding Agreement: This Agreement shall be binding not only upon the parties hereto but also upon their heirs, executors, administrators, successors,and assigns. g. Non Assignment: This Agreement shall not be assignable in whole or in part by either party without the express written consent of the other party thereto. Any assignment consented to shall be subject to the terms and conditions herein unless otherwise agreed in writing by the non-assigning party. a. Governing Law: This Agreement shall be governed by and construed and enforced in accordance with the laws of the State of North Carolina. Mattwill/Selle Comm/Res Lease w/Option Page 7 of 8 a. Section Headings: The section headings contained herein are for reference purposes only and shall not in any way affect the meaning or interpretation of this Agreement. b. Construction: This Agreement has been produced by negotiation of the parties and the rule of construction against the interest of the drafter shall not apply. a. Use of terms: Words used in this Agreement in the present tense include the future as well as the present; words used in the masculine gender include the feminine and neuter; the singular number includes the plural, and the plural the singular; and word "person" includes a corporation as well as a natural person. b. Counterparts: This Agreement may be executed in two.or more counterparts, each of which shall be deemed an original and all of which together shall constitute one and the same instrument. In Testimony Whereof, said parties have executed this contract in duplicate originals, one of which is retained by each of the parties,the day and year first above written. EAL) Christophbf E. Selle,Landlord ( - -N �C� (SEAL) Margare N. Selle,Landlord Mattwill,LLC BY: (SEAL) Raymond Hollbcks,Member-Manager, Tenant Mattwill/selle COffinVRes Lease w/Option Page 8 of 8