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HomeMy WebLinkAboutTransylvania Co. - Sediment & Fish Tissue Sampling - GladfelterMeasured Depth o Sample ID Sample ID Elev. Top of Sampler Sampler Length Length of Water over Sample Number ( Top Number (Bottom Sediment in Length in above Water in Sediment Core Sediment in Point Northing Easting Location Half of Tube) Half of Tube) Ft Inches Inches In Inches Inches 8801 568265.447 897975.493 ASB BS-1-A 2096.64 185 27 5.75 152.25 8802 568671.308 898301.952 ASB BS-2-A 2094.94 185 6 8.00 171.00 8803 569320.129 898162.068 ASB BS-3-A BS-3-B 2099.30 185 60 18.00 107.00 8804 569443.263 897596.832 ASB BS-4-A BS-4-B 2099.00 185 54 14.50 116.50 8806 569633.959 896914.704 ASB BS-5-A BS-5-B 2102.39 185 78 17.75 89.25 8807 569423.264 896567.984 ASB BS-6-A BS-6-B 2103.78 185 90 15.00 80.00 DEC 15 200B Asheville Regional ®nice Am ii¢ar, Protection r _D i �frirt7 O :„! Summary of Test Data ASB Pisgah Forest NC Sample Location Sample ID Number Parameters Date Result Unit ASB BS-1-A 2,3,7,8-TCDD 16-Oct-06 41 ng/kg Total TCDD 16-Oct-06 110 ng/kg 1,2,3,7,8-PeCDD 16-Oct-06 25 ng/kg Total PeCDD 16-Oct-06 230 ng/kg 1,2,3,4,7,8-HxCDD 16-Oct-06 44 ng/kg 1,2,3,6,7,8-HxCDD 16-Oct-06 410 ng/kg 1,2,3,7,8,9-HxCDD 16-Oct-06 250 ng/kg Total HxCDD 16-Oct-06 3200 ng/kg 1,2,3,4,6,7,8-HpCDD 16-Oct-06 4200 ng/kg Total H CDD 16-Oct-06 7500 ng/kg OCDD 16-Oct-06 8200 ng/kg 2,3,7,8-TCDF 16-Oct-06 730 ng/kg Total TCDF 16-Oct-06 1500 ng/kg 1,2,3,7,8-PeCDF 16-Oct-06 19 (EMPC) ng/kg 2,3,4,7,8-PeCDF 16-Oct-06 15 ng/kg Total, PeCDF 16-Oct-06 72 ng/kg 1,2,3,4,7,8-HxCDF 16-Oct-06 5.6 ng/kg 1,2,3,6,7,8-HxCDF 16-Oct-06 ND ng/kg 2,3,4,6,7,8-HxCDF 16-Oct-06 ND ng/kg 1,2,3,7,8,9-HxCDF 16-Oct-06 ND ng/kg Total HxCDF 16-Oct-06 45 ng/kg 1,2,3,4,6,7,8-HpCDF 16-Oct-06 21 ng/kg 1,2,3,4,7,8,9-H CDF 16-Oct-06 ND ng/kg Total HpCDF 16-Oct-06 59 ng/kg OCDF 16-Oct-06 48 ng/kg Mercury 16-Oct-06 1.2 mg/kg Percent Solids 16-Oct-06 25.8 Percent TOC 16-Oct-06 57000 mg/kg EMPC = (PCDE Interference) Estimated Maximum Possible Concentration DMC 11-10-2006 ace Analytical ° www.pacelabs.com November 07, 2006 Mr. D.M. Cody Glatfelter Corp. 214 Camelot Dr. Clyde, NC 28721 RE: Lab Project Number: 92130089 Client Project ID: Dioxin Dear Mr. Cody: Pace Analytical Services, Inc. 9800 Kincey Avenue, Suite 100 Huntersville, NC 28078 Phone: 704.875.9092 Fax: 704.875.9091 Pace Analytical Services, Inc. 2225 Riverside Drive Asheville, NC 28804 Phone: 828.254.7176 Fax. 828.252.4618 Enclosed are the analytical results for sample(s) received by the laboratory on October 16, 2006. Results reported herein conform to the most current NELAC standards, where applicable, unless otherwise narrated in the body of the report. Inorganic Wet Chemistry and Metals Analyses were performed at our Pace Asheville laboratory and Organic testing was performed at our Pace Charlotte laboratory unless otherwise footnoted. If you have any questions concerning this report please feel free to contact me. S incer y, orri Patton lorri.patton@pacelabs.com (828) 254-7176 Project Manager Enclosures Asheville Certification IDs REPORT ,OF LABORATORY ANALYSIS NC Wastewater 40 37712 This report shall not be reproduced, except in full, NC Drinking Water SC 37712 without the written consent of Pace Analytical Services, Inc. ACC ° B FL NELAP E87648 - Charlotte Certification IDs NC Wastewater 12 NC Drinking Water 37706 SC 99006 FL NELAP E87627 Subcontracted Results Pace Project # This report includes page Ito _F -. aceAnalytical° 1 www.pacelabs.com Pace Analytical Services, Inc. 1700 Elm Street Minneapolis, MN 55414 Phone: 612.607.1700 fax: 612.607.6444 DEZ`E 1VI NA1' O. OV 0*/'PCW 1Xft . 1 ty A CC0,9o92 U U -�1 a = This report contains 18 pages. The results reported herein conform to the most current NELAC standards, where applicable, unless otherwise narrated in the body of the report. Project: Chemical Analysis Client Project: Glatfelter Corp. 92130089 REPORT OF LABORATORY ANALYSIS This report shall not be reproduced, except in full, without the written consent of Pace Analytical Services, Inc. N ACCU9 -nelc- PROJECT: Pace Analytical Services, lnc. Anal ® 700 Elm Street ] Analytical Minneapolis, MN 55414 yical REPORT OF: CHEMICAL ANALYSES Phone: 612.607.1700 www.pacelabs.com Fax' 612.607.6444 PCDD/PCD;F ANALYSES DATE: November 6, 2006 ISSUED TO: Pace Analytical Services, Inc. Attn: Lorri Patton 2225 Riverside Drive Asheville, NC 28804 INTRODUCTION REPORT NO: 06-1040258 This. report presents the results from the analyses performed on ten samples submitted by a representative of Pace Analytical Services, Inc. The samples were analyzed for the presence or absence of polychlorodibenzo-p-dioxins (PCDDs) and polychlorodibenzofurans (PCDFs) using a modified version of USEPA Method 1613B. SAMPLE IDENTIFICATION Client ID Sample Type Date Received PACE ID 13S-6-A Solid 10/16/06 927562355 BS-6-13 Solid 10/.16I06 927562363 o BS-5-A Solid 10/16/06 927562330 BS-5-13 Solid 10116/06 927562348 BS-4-A Solid 10/16/06 927562314 BS-4-13 Solid 10/16/06 927562322 BS-3-A Solid 10/16/06 927562208 BS-3-13 Solid 10/16/06 927562306 BS-2-A Solid 10/16/06 927562280 BS-1-A Solid 10/16/06 927562272 DISCUSSION The .recoveries of the isotopically -labeled PCDD/PCDF internal standards in the sample extracts ranged from 28-121 %. All of the labeled standard recovery values obtained for this project were within the target ranges specified in Method 16136. Also, since the quantification of the native 2,3,7,8-substituted congeners was based on isotope dilution, the data were automatically corrected for variation in recovery and accurate values were obtained. REPORT OF LABORATORY ANALYSIS This report shall not be reproduced, except in full, without the written consent of Pace Analytical Services, Inc. � ACCORp °ri�el�c PROJECT: PAGE:2 Analytical www.pacelabs.com DEPORT OF: CHEMICAL ANALYSES PCDD/PCDF°.A:)VALYSES DISCUSSION (Cont.) Pace Analytical Services, Inc. 1700 Elm Street Minneapolis, MN 55414 Phone: 612.6071700 Fax: 612.607.6444 DATE: November 6, 2006 REPORT NO: 06-1040258 In some cases, interfering substances impacted the determinations of PCDF congeners. The affected values were flagged " E" where polychlorinated diphenyl ethers were present. A laboratory method blank was prepared and analyzed with the sample batch as part of our routine quality:;c'ontrol procedures. The results, found at the beginning of Appendix 6, show the blank to be -free of PCDDs and PCDFs at the reporting limits. These results indicate that the sample processing procedures did not.significantly impact the results of the field sample analyses. A laboratory spike sample was also prepared using clean sand that had been fortified with native standard material. Recoveries of the spiked native compounds ranged from 84-102%. These results indicate a high degree of accuracy for these determinations. REMARKS The sample extracts will be retained for a period of 15 days from the date of this report and then discarded unless other arrangements are made. The raw mass spectral data will be archived on magnetic tape for a period of not less than one year. Questions regarding the data contained in this report may be directed to the author at the number provided below. Pace Analytical Services, Inc. Scott C. Unze Project Manager, HRMS (612) 607-6383 REPORT OF LABORATORY ANALYSIS This report shall not be reproduced, except in full, without the written consent of Pace Analytical Services, Inc. �M .E�Ogo ,-fndac Analytical o www.pacelabs.com APPENDIX A REPORT OF LABORATORY ANALYSIS This report shall not be reproduced, except in full, without the written consent of Pace Analytical Services, Inc. Pace Analytical Services, Inc. 1700 Elm Street Minneapolis, MN 55414 Phone: 612.6071700 Fax: 612.607.6444 \M ntppgp ti i � •�C �,nd t CHAIN -OF -CUSTODY / Analytical Request Document The Chain -of -Custody is a LEGAL DOCUMENT. All relevant fields must be completed accurately. /I 1. A;-- [ Page: of Section A Section B Section C n 0975492 Required Client Information: Required Project Information:. Invoice Information: Company i Report To: Attention: L . -ENCY "� �- ❑ NPDES ❑ GROUNDWATER ❑ DRINKING WATER Address Copy To: Company Name: ❑ UST ❑ RCRA ❑Other Address: ❑GA ❑ IL ❑ IN ❑ MI ❑ MN ❑ NC Email To: Purchase Order No.: Pace Quote Reference: ❑OH ❑SC ❑ WI ❑OTHER Phone Fax Project Name: Pace Project Manager: Filtered (YIN) Requested Due Date/TAT: Project Number: Pace Profile #: Requested Analysis: Section D Required Client Information Valid Matrix Codes MATRIX CODE a ' Preservatives \ SAMPLE ID DRINKING WATER DW w WATERW 0 WASTE WATER WW 00 wM aQ �n a o �F � m LLO PRODUCT P SOIUSOLID SL x w� Jm COLLECTED w J J # One Character per box. (A-Z,.0-9 / :) OIL OL AIR E R g� �O COMPOSITE START COMPOSITE END/GRAB 00 ¢ zo H o 0 m O = w m `m 0� y Pace Project Number w Samples IDS MUST BE UNIQUE i_ OTHER OT TISSUE TS c9 DATE TIME DATE TIME s h O N t j _ _ = Z z S 0 Lab I.D Fj 6 i uld E s_ zr, 6 d - e .: • ■ • ■ = • ■ - SAMPLE CONDITION Additional Comments: ? � Z fo � IG:YG 5.`t z z z z U ° c a• o �. U m • - - • ■ SIGNATURE PRINT Nam f SA ER; / E SEE REVERSE SIDE FOR INSTRUCTIONS SIGNATURE SAM�PL/E�R: /� /�� J �/;/.C✓�f" DATE Signedd (MM l DD! /A Ar A, o t� m n Al i nn9n.a•, n ai nnam-q A-L. _1® CHAIN -OF -CUSTODY / Analytical Request Document The Chain -of -Custody is a LEGAL DOCUMENT. All relevant fields must be completed accurately. ..-T-aUcr11a1yL1uat Page: of (Section A Section B Section C 0975492 Required Client Information: Required Project Information: Invoice Information: Company r-' i ! ReportTo: `�" ^}. ,� ' Z; Attention: REGULATORY ❑ NPDES ❑GROUNDWATER El DRINKING WATER Address Copy To: Company Name: -�'� ❑ UST ❑ RCRA ❑ Other Address: ❑GA ❑IL [I IN ❑MI ❑MN ❑NC Email To: Purchase Order No.: Pace Quote Reference: DOH ❑SC ❑ WI ❑OTHER Phone Fax Project Name: Pace Project Manager: Filtered (Y/N) Requested Due DaterTAT: Project Number: Pace Profile #: Requested Analysis: Section D Required Client Information Valid Matrix Codes MATRIX CODE a Preservatives g w+ DRINKING WATER DW WATER Wi W wO o a� O D_ o m U w w oe SAMPLE I D WASTEWATER WW P � y PRODUCT SOIUSOLID SL K J8 COLLECTED W J O a st �i 4r One Character per box. 2 (A-Z, 0-9 / OIL OL WIPE WP 2 ¢ '011 COMPOSITE START COMPOSITE END/GRAB 0 o ¢ U o c O p z0 N `m a' ma Pace Project Number .-) Samples IDs MUST BE UNIQUE AIR AR OTHER OT DATE TIME DATE TIME A. 7 = _ = 2 Z 5 _ _ r, Lab LD TISSUE TS O Z. VIJ cs LA. A --� ��.J •, jam- ` , E��^ 7�- E d - r, .: • . •ACCEPTED BY I AFFILIATIONDATE TIME SAMPLE CONDITION Additional Comments: Z Z Z Z Z Z SAMPLER NAME AND SIGNATUREd . PRINT Name of SAMP ER:. f!� v d o U' in co c SIGNATURE ofJSAMPL•EF� � !� DATE Signed, (MM / D / SEE REVERSE SIDE FOR INSTRUCTIONS .. r, _ ` �',d J'�c.f ;` , .�,. ;��•- t_ - /".=' ' �� . �.�• K a� T[iFC4�atet'of-Cusfoi3y'rs a LEGAL DCiCUMIrN:T' Alt reievaetf fields muss he completed accurately. � f" QCC'� i1 fQllli,Ci! _ 7 ,� � Page:of ---- liSectton A Section R SecRlon G � y � 'a n" 1RequifedClignt.Information:,,::. ., .. RegFtxecLProlectlrtfv>inat�on: ....;. djYi}iGetrltnrnkhtonr.:: ,. ct .s_s.:, ,x. � n e REGULATORY AGENCY - C] NPCSS GR�UNDWATER JK I NGV:ERCompany Dfi Address copy To a RCRA Oth ti. Address -44 ❑GA _1'tL r IN, 1MI;- L_;MN ClNC Email To: Purchase Order No.: Pace QuotdReference : • ❑OH -}SC ❑ WI ':]OTHER Phone Fex Pid}ect Na[ne: ' ;' . P'hce Project Manager.' _ Filtered (Y!N) / Requested Due Date/TAT: Project Number: Pece Profile M Requested - — Analysis: Sectk n D Required Client Information Valid, Maitrix Codes MATRIX ' C'OOE WATER GYJATER Q p a.0 ge Preservatixes SAMPLE 1 D WASTE WATER wW o w f PRODUCT P x wv COLLECTED ujw' O ¢ / 4t One Character per box. SOIUSOUD SL ;�, t OIL OL f Rm r >, ':. �; I :.a .a.'. r ' ;.�'. v D 5 ,� °n: 1�M m D g o (A-Z, 0-9 / WIPE W COMPOSITE START COMPOSITE END/GRAB ¢ v p dD Pare Project Number ,-) LL Samples IDS MUST BE UNIQUE AIR DATE T}(NF' .DATE ':TIME' <?�tY' LL m Z.r ?t° z.'2 's ..� LabI.D TDissUE' (s e::. 1'� r • ^ 1 1 � �y�,t„ I' Y) �. t � i ti".. f i : ��� . f,( '� � {..r}4/ �--_..,—_._.-.... IN 4+ ". 1 - e s4141ki 1111111oAl• BYJ AFFILIATION• SAMPLE CONDITION Additiorial Comments: :. yr , _ . - z z V1,.r r Z } SAMPLER NAME • SIGNATURE POINT Nero C3 SEE REVERSE SIDE FOR INSTRUCTIONS _ SIGNATLJEiEr j SAMPI{E •. ,✓.�1' „f f i {' _;,� � ! >~ ; ;(`��, ,,, r'ry ^;.� DATE Signed} (MM / OD / M, %,r'_-;i �?,{'Al" ' .. rii m Al 1002CIrev.3 31 Marr15 ace Analytical www.pacelabs.com APPENDIX B REPORT OF LABORATORY ANALYSIS This report shall not be reproduced, except in full, without the written consent of Pace Analytical Services, Inc. Pace Analytical Services, Inc. 1700 Elm Street Minneapolis, MN 55414 Phone: 612.607.1700 Fax: 612.607.6444 �N nCCpyp* �tr�elac TM Pace Analytical Services, Inc. 1700 Elm Street - Suite 200 Minneapolis, MN 55414 Tel: 612-607-1700 Method 1613B Blank Analysis Results Client - PACE Asheville Lab Sample ID BLANK-11285 Matrix Solid Filename F610316 06 Dilution NA Total Amount Extracted 20.4 g Extracted 10/24/2006 ICAL Date 09/10/2006 Analyzed 10/31/2006 14:24 CCal Filename(s) F61031 B_02 Injected By SMT Native Conc EMPC PRL Internal ng's Percent Isomers ng/Kg ng/Kg ng/Kg Standards Added Recovery 2,3,7,8-TCDF , ND ---- 0.49 2,3,7,8-TCDF-13C 2.00 81 Total TCDF ND ----- ---- 2,3,7,8-TCDD-13C 2.00 72 1,2,3,7,8=PeCDF-13C 2.00 80 2,3,7,8-TCDD ND ----- 0.49. 2,3,4,7,8-PeCDF-13C 2.00 84 Total TCDD ND ----- ----- 1,2,3,7,8-PeCDD-13C 2.00 95 1,2,3,4,7,8-HxCDF-13C 2.00 85 ' 1,2,3,7,8-PeCDF ND ----- 2.40 1,2,3,6,7,8-HxCDF-13C 2.00 79 2,3,4,7,8-PeCDF ND ----- 2.40 2,3,4,6,7,8-HxCDF-13C 2.00 80 Total PeCDF ND ----- --- 1,2,3,7,8,9-HxCDF-130 2.00 79 1,2,3,4,7,8-HxCDD-13C 2.00 86 1,2,3,7,8-PeCDD ND ----- 2.40 1,2,3,6,7,8-HxCDD-13C 2.00 74 Total PeCDD • ND ----- ----- 1,2,3,4;6,7,.8-HpCDF-13C 2,00 76 1,2,3,4,7,8,9-HpCDF-13C 2.0,0 67 1,2,3,4,7,8-HxCDF ND ----- 2.40 1,2,3,4,6,7,8-HpCDD-13C 2.00 87 1,2,3,6,7,8-HxCDF ND ----- 2.40 OCDD-13C 4.00 83 2,3,4,6,7,8-Hx0DF ND ----- 2.40 1,2,3,7,8,9-HxCDF ND ----- 2.40 1,2,3,4-TCDD-13C 2.00 NA Total HxCDF ND ----- ---- 1,2,3,7,8,9-HxCDD-13C 2.00 NA 1,2,3,4,7,8-HxCDD ND ----- 2.40 2,3,7,8-TCDD-37CI4 0.20 67 1,2,3,6,7,8YHxCDD ND ----- 2.40 1,2,3,7,8,9-HxCDD ND ----- 2.40 Total HxCDD • ND ----- ----- 1,2,3,4,6,7,8-HpCDF ND ----- 2.40 Total2,3,7,8-TCDD 1,2,3,4,7,8,9-HpCDF ND ----- 2.40 Equivalence: 0.00 ng/Kg Total HpCDF ND ----- ----- (Using ITE Factors) 1,2,3,4,6,7,8-HpCDD ND ----- 2.40 Total HpCDD,K ND ----- ---- OCDF ND ----- 4.90 OCDD ND ----- 4.90 Conc = Concentration (Totals include 2,3,7,8-substituted isomers). I = Interference EMPC = Estimated Maximum Possible Concentration E = PCDE Interference PRL = Pace Analytical Reporting Limit ND = Not Detected A = Limit of Detection based on signal to noise NA = Not Applicable P = Recovery outside of method 1613 control limits NC = Not Calculated Nn = Value obtained from additional analysis J = Value below calibration range = See Discussion Report No ..... 1040258 REPORT OF LABORATORY ANALYSIS This report shall not be reproduced, except in full, without the written consent of Pace Analytical Services, Inc. e Pace Analytical Services, Inc. 1700 Elm Street - Suite 200 I` Minneapolis, MN 55414 TM ace Anal a.l Tel: -607-1700 y�t -� r��r Fax: 12 62-� 607-6444 Method 1613B Analysis Results Client - PACE Asheville Client's Sample ID BS-1-A Lab Sample ID 927562272 Filename P61104B_16 Injected By BAL Total Amount Extracted 38.7 g Matrix Solid % Moisture 74.1 Dilution NA Dry Weight Extracted 10.0 g Collected 10/16/2006 ICAL Date 10/29/2006 Received 10/16/2006 CCal Filename(s) P611046_02 Extracted 10/24/2006 Method Blank ID BLANK-11285 Analyzed 11/05/2006 12:54 Native Conc EMPC PRL Internal ngis Percent Isomers ng/Kg ng/Kg _ - ng/Kg ~ ~2,3,7,8-TCDF-13C� Standards Added Recovery 2,3,7,8-TCDF 730.0 --- 1.00"- 2.00 92 Total TCDF 1500.0 ----- ----- 2,3,7,8-TCDD-13C 2.00 73 1,2,3,7,8-PeCDF-13C 2.00 75 2,3,7,8-TCDD 41.0 ----- 1.00 2,3,4,7,8-PeCDF-13C 2,00 78 Total TCDD 110.0 ----- ----- 1,2,3,7,8-PeCDD-13C 2.00 90 1,2,3,4,7,8-HxCDF-13C 2.00 105 1,2,3,7,8-PeCDF ----- 19 5.00 E 1,2,$,6,7,$-HxCDF-13C 2.00 94 2,3,4,7,8-PeCDF 15.0 ----- 5.00 .2,3,4,6,7,8-HxCDF-13C 2.00 87 Total PeCDF 72.0 ----- ----- 1,2,3,7,8,9-HxCDF-13C 200 77 1,2,3,4,7,8-HxCDD-13C 2.00 89 1,2,3,7,8-PeCDD 25.0 ----- 5.00 1,2,3,6,7,8-HxCbb-13C 2.00 86 Total PeCDD 230.0 ----- ----- 1,2,3,4,6,7,8-HpCDF-13C 2.00 57 1,2,3,4,7,8,9-HpCDF-13C 2.00 43 1,2,3,4,7,8-HxCDF 5.6 ----- 5.00 1,2,3,4,6,7,8-HpCDD-13C 2.00 59 1,2,3,6,7,8-HxCDF ND ----- 5.00 OCDD-13C 4.00 28 2,3,4,6,7,8-HxCDF ND ----- 5.00 1,2,3,7,:8,9-HxCDF ND ---- 5.00 1,2,3;4-TCDD-13C 2.00 NA Total HxCDF 45.0 ----- ----- 1,2,3,7,8,9-HxCDD-13C 2.00 NA 1,2,3,4,7,8-HxCDD 44.0 ----- 5.00 2,3,7,8-TCDD-37CI4 0.20 67 1,2,3,6,7,8-HxCDD 410.0 ----- 5.00 1,2,3,7,8,9-HxCDD 250.0 ----- 5.00 Total HxCDD 3200.0 ----- ----- 1,2,3,4,6,7,8-HpCDF 21.0 ----- 5.00 Total2,3,7,8-TCDD 1,2,3,4,7,8,9-HpCDF ND ----- 5.00 Equivalence: 250 ng/Kg Total HpCDF::;: 59.0 ----- ----- (Using ITE Factors) 1,2,3,4,6,7,8-HpCDD 4200.0 ----- 5.00 Total HpCDD 7500.0 ----- ---- OCDF 48.0 ----- 10.00 OCDD 8200.0 ----- 10.00 Results reported on a dry weight basis I = Interference Cone = Concentration (Totals include 2,3,7,8-substituted isomers). E = PCDE Interference EMPC = Estimated Maximum Possible Concentration ND = Not Detected PRL = Pace Analytical Reporting Limit. NA = Not Applicable A = Limit of Detection based on signal to noise B = Less than 10 times higher than method blank level NC = Not Calculated P = Recovery outside of method 1613 control limits J = Value below calibration range Nn = Value obtained from additional analysis * = See Discussion REPORT OF LABORATORY ANALYSIS This report shall not be reproduced, except in full, without the written consent of Pace Analytical Services, Inc. Report No ..... 1040258 1.1 t; Client's Sample ID Lab Sample ID Filename Injected By Total Amount Extracted % Moisture Dry Weight Extracted ICAL Date CCal Filename(s) Method Blank ID Native Isomers 2,3,7,8-TCDF Total TCDF od 1613B Analysis Results Client - PACE Asheville BS-2-A 927562280 P61105A 18 BAL 37.5 g 73.2 10.1 g 11 /05/2006 P61105A 09 BLANK-11285 Cone EMPC ng/Kg ng/Kg 670.0 ----- 1300.0 ----- PRIL ng/Kg 0.99 2,3,7,8-TCDD 36.0 ----- 0.99 Total TCDD 74.0 ----- ----- 1,2,3,7,8-PeCDF 14.0 ----- 5.00 2,3,4,7,E-PeCDF 15.0 ----- 6.00 Total PeCDF 94.0 ----- ----- 1,2,3,7,8-PeCDD 23.0 ----- 5.00 Total PeCDD 220.0 ----- ----- 1,2,3,4,7,8-HxCDF 5.3 ----- 5.00 1,2,3,6,7,8-HxCDF ND ----- 5.00 2,3,4,6,7,8-HxCDF ND ----- 5.00 1,2,3.,7.,8,9-HxCDF ND ----- 5.00 Total HxCDF 52.0 ----- ----- 1,2,3,4,7,8-HxCDD 45.0 ----- 5.00 1,2,3,6,7,8-HxCDD 400.0 ----- 5.00 1,2,3,7,8,9-HxCDD 260.0 ----- 5.00 Total HxCDD 3100.0 ----- ----- 1,2,3,4,6,7,8-HpCDF 18.0 ----- 5.00 1,2,3,4,7,8,9-HpCDF ND ----- 5.00 Total HpCDF_ 18.0 ----- ----- 1,2,3,4,6,7,8-HpCDD 4400.0 ----- 5.00 Total HpCDD 7800.0 ----- ----- OCDF 42.0 ----- 9.90 OCDD 9200.0 ----- 9.90 Results reported on a dry weight basis Conc = Concentration (Totals include 2,3,7,8-substituted isomers) EMPC = Estimated Maximum Possible Concentration PRL = Pace Analytical Reporting Limit. A = Limit of Detection based on signal to noise B = Less than 10 times higher than method blank level P = Recovery outside of method 1613 control limits Nn = Value obtained from additional analysis Pace Analytical Services,. Inc. 1700 Elm Street - Suite 200 Minneapolis, MN 55414 Tel: 612-607-1700 Matrix Solid Dilution NA Collected 10/16/2006 Received 10/16/2006 Extracted 10/24/2006 Analyzed 11/06/2006 06:03 Internal ng's Percent Standards Added Recovery 2,3,7,8-TCDF-13C 2.00 93 2,3,7,8-TCDD-13C 2.00 99 1,2,3,7,8-PeCDF-13C 2.00 65 2,3,4,7,8-PeCDF-13C 2.00 64 1,2,3,7,8-PeCDD-13C 2.00 82 1,2,3,4,7,8-HxCDF-13C 2.00 100 1,2,3,6,7,8-HxCDF-13C 2.00 89 2,3,4,6,7,8-HxCDF-13C 2.00 87 1,2,3,7,8,9-HxCDF-13C 2.00 87 1,2,3,4,7,8-HxCDD-13C 2.00 100 1,2,3,6,7,8-HxCDD-13C 2.00 93 1,2,3,4,6,7,8-HpCDF-13C 2.00 77 1,2,3,4,7,8,9-HpCDF-13C 2.00 66 1,2,3,4,6,7,8-HpCDD-13C 2.00 90 OCDD-13C 4.00 45 1,2,3,4-TCDD-13C 2.00 NA 1,2,3,7,8,9-HxCDD-13C 2.00 NA 2,3,7,8-TCDD-37CI4 0.20 88 Total 2,3,7,8-TCDD Equivalence: 250 ng/Kg (Using ITE Factors) I = Interference E = PCDE Interference ND = Not Detected NA = Not Applicable NC = Not Calculated J = Value below calibration range * = See Discussion REPORT OF LABORATORY ANALYSIS This report shall not be reproduced, except In full, without the written consent of Pace Analytical Services, Inc. Report No ..... 1040258 Pace Analytical Services, Inc. 1700 Elm Street - Suite 200 Minneapolis, MN 55414 aceAnalyocal rM Tel: 07-1700 Fax: 612- "07-6444 Method 1613`B Analysis Results / Client - PACE Asheville Client's Sample ID BS-3-A Lab Sample ID 927562298 Filename P61105A 13 Injected By BAL Total Amount Extracted 36.0 g Matrix Solid % Moisture 72.0 Dilution NA Dry Weight Extracted 10.1 g Collected 10/16/2006 [CAL Date 11/05/2006 Received 10/16/2006 CCal Filename(s) P61105A_09 Extracted 10/24/2006 Method Blank ID BLANK-11285 Analyzed 11/06/2006 02:01 Native Conc EMPC PRL Internal ng's Percent Isomers ng/Kg ng/Kg ng/Kg Standards Added Recovery 2,3,7,8-TCDF 21.0 ----- 0.99 2,3,7,8-TCDF-I3C 2.00 100 Total TCDF 37.0 ----- ----- 2,3,7,8-TCDD-13C 2.00 70 1,2,3,7,8-PeCDF-13C 2.00 92 2,3,7,8-TCDD ND ----- 0.99 2,3,4,7,8-PeCDF-I3C 2.00 93 Total TCDD 1.3 ----- ----- 1,2,3,7,8-PeCDD-13C 2.00 102 1,2,3,4,7,8-HxCDF-130 2.00 107 0 1,2,3,7,8»PeCD17 ND ----- 5.00 1,2A6,7,8.-HxCDF-13C 2.00 101 2,3,4,7,8-PeCDF ND ----- 5.00 2,3,4,6,7,8-HxCDF-13C 2.00 96 Total PeCDF ND ----- ----- 1,2,3,7,8.r9-HxCDF-13C 2.00 93 1,2,3,4,7,8-HxCQD-13C 2.00 95 1,2,3,7„8-PeCDD ND ----- 5.00 1,2,3,6,7,8-HxCDD-13C 2.00 89 Total PeCDD ND ----- ----- 1,2,3,4;.6.,7,8-HpCDF-13C 2.00 86 1,2,3,4,7,8,9-HpCDF-13C 2,00 76 1,2,3,4,7,8-HxCDF N.D ----- 5.00 1,2,3,4,6,7,8-HpCDD-13C 2.00 88 1,2,3,6,7,8-HxCDF ND ----- 5.00 OCDD-13C 4.00 95 2,3,4,6,7,8-HxCDF ND ----- 5.00 1,2,3,7,8,9-HxCDF ND ----- 5.00 1,2,3,4-TCDD-13C 2.00 NA Total HxCDF ND ----- ----- 1,2,3,7,8,9-HxCDD-13C 2.00 NA 1,2,3,4,7,8-HxCDD ND ----- 5.00 2,3,7,8-TCDD-37CI4 0.20 65 1,2,3,6,7,8-HxCDD 14.0 ----- 5.00 1,2,3,7,8,9-HxCDD 12.0 ----- 5.00 Total HxCDD 110.0 ----- ----- 1,2,3,4,6,7,8-HpCDF ND ----- 5.00 Total2,3,7,8-TCDD 1,2,3,4,7,8,9-HpCDF ND ----- 5.00 Equivalence: 6.9 ng/Kg Total HpCDF...,; ND ----- ----- (Using ITE Factors) 1,2,3,4,6,7,8-HpCDD 190.0 ----- 5.00 Total HpCDD 330.0 ----- ----- OCDF ND ----- 9.90 OCDD 330.0 ----- 9.90 Results reported on a dry weight basis I =Interference Conc = Concentration (Totals include 2,3,7,8-substituted isomers). E = PCDE Interference EMPC = Estimated Maximum Possible Concentration ND =Not Detected PRL = Pace AnIalytical Reporting Limit. NA = Not Applicable A = Limit of Detection based on signal to noise B = Less than 10 times higher than method blank level NC = Not Calculated P = Recovery outside of method 1613 control limits J = Value below calibration range Nn = Value obtained from additional analysis * = See Discussion Report No ..... 1040258 REPORT OF LABORATORY ANALYSIS This report shall not be reproduced, except in full, without the written consent of Pace Analytical Services, Inc. I 1613B Analysis Results Client - PACE Asheville Client's Sample ID BS-3-B Lab Sample ID 927562306 Filename P61105A_15 Injected By BAL Total Amount Extracted 33.5 g % Moisture 70.2 Dry Weight Extracted 10.00 g ICAL Date 11 /05/2006 CCal Filename(s) P61105A_09 Method Blank ID BLANK-11285 Native Cone EMPC PRI_ Isomers ng/Kg ng/Kg ng/Kg 2,3,7,8-TCDF 550.0 ----- 1.0 Total TCDF 1000.0 ----- ----- 2,3,7,8-TCDD' 19.0 ----- 1.0 Total TCDD 80.0 ----- ----- 1,2,3,7,8-PeCDF ----- 7.5 5.0 E 2,3,4,7,8-PeCDF ----- 17.0 5.0 E Total PeCDF 92.0 ----- ----- 1,2,3,7,8-PeCDD 27.0 ----- 5.0 Total PeCDD 240.0 ----- ----- 1,2,3,4,7,8-HxCDF 6.3 ----- 5.0 1,2,3,6,7,8-HxCDF ND ----- 5.0 2,3,4,6,7,8<HxCDF 6.4 ----- 5.0 1,2,3,7,8,9-HxCDF ND ----- 5.0 Total HxCDF 94.0 ----- ----- 1,2,3,4,7,8-HxCDD 50.0 ----- 5.0 1,2,3,6,7,8=HxCDD 480.0 ----- 5.0 1,2,3,7,8,9-HxCDD 300.0 ----- 5.0 Total HxCDD 3800.0 ----- ----- 1,2,3,4,6,7,8-HpCDF 49.0 ----- 5.0 1,2,3,4,7,8,9-HpCDF ND ----- 5.0 Total HpCDF,�F=: 110.0 ----- ----- 1,2,3,4,6,7,8-HpCDD 5100.0 ----- 5.0 Total HpCDD 9400.0 ----- ----- Pace Analytical Services, Inc. 1700 Elm Street - Suite 200 Minneapolis, MN 55414 Tel: 612-607-1700 Matrix Solid Dilution NA Collected 10/16/2006 Received 10/16/2006 Extracted 10/24/2006 Analyzed 11 /06/2006 03:38 Internal ng's Percent Standards Added Recovery 2,3,7,8-TCDF-13C 2.00 89 2,3,7,8-TCDD-13C 2.00 64 1,2,3,7,8-PeCDF-13C 2.00 67 ' 2,3,4,7,8-PeCDF-13C 2.00 66 1,2,3,7,8-PeCDD-13C 2.00 84 1,2,3,4,7,8-HxCDF-13C 2.00 99 1,2,3,6,7,8-HxCDF-13C 2.00 88 2,3,4,6,7,8-HxCDF-13C 2.00 86 1,2,3,7,8,9-HXCOF-13C 2.00 82 . 1,2,3,4,7,8-HxCDD-130 2.00 93 1,2,3,6,7,8-HxCDD-13C 2.00 87 1,2,3,4,6,7,8-HeCDF-13C 2,00 73 1,2,3,4,7,8,9-HpCDF-13C 2.00 62 1,2,3,4,6,7,8-HpCDD-13C 2.00 89 OCDD-13C 4.00 54 1,2,3,4-TCDD-13C 2.00 NA 1,2,3,7,81-9-HxCDD-13C 2.00 NA 2,3,7,8-TCDD-37CI4 0.20 54 OCDF 66.0 ----- 10.0 OCDD 16000.0 ----- 10.0 Results reported on a dry weight basis Conc = Concentration _(Totals include 2,3,7,8-substituted isomers). EMPC = Estimated Maximum Possible Concentration PRL = Pace Analytical Reporting Limit. A = Limit of Detection based on signal to noise. B = Less than 10 times higher than method blank level P ='Recovery outside of method 1613 control limits Nn = Value obtained from additional analysis Total 2,3,7,8-TCDD Equivalence: 240 ng/Kg (Using ITE Factors) I = Interference E = PCDE Interference ND = Not Detected NA = Not Applicable' NC = Not Calculated J = Value below calibration range * = See Discussion Report No ..... 1040258 REPORT OF LABORATORY ANALYSIS This report shall not be reproduced, except in full, without the written consent of Pace Analytical Services, Inc. TM e od 1613B Analysis Results Client - PACE Asheville Client's Sample ID BS-4-A Lab Sample ID 927562314 Filename P61105A 16 _ Injected By BAL Total Amount Extracted 34.4 g % Moisture 70.9 Dry Weight Extracted 10.0 g ICAL Date 11/05/2006 CCai Filename(s) P61105A_09 Method Blank.ID BLANK-11285 Native Conc EMPC PRL Isomers ng/Kg ng/Kg ng/Kg 2,3;7,8-TCDF 93.0 ----- 1.00 Total TCDF 180.0 ----- ----- 2,3,7,8-TCDD 5.6 ----- 1.00 Total TCDD 19.0 ----- ----- 1,2,3,7,8-PeCDF ND ----- 5.00 2,3,4,7,8-PeCDF ND ----- 5.00 Total PeCDF 14.0 ----- ----- 1,2,3,7,8-PeCDD 7.8 ----- 5.00 Total PeCDD 51.0 ----- ----- 1,2,3,4,7,8-HxCDF ND ----- 5.00 1,2,3,6,7,8-HxCDF ND ----- 5.00 2,3,4,6,7,8-HxCDF ND ----- 5.00 1,2,3;7,8,9-HxCDF ND ----- 5.00 Total HxCDF , 11.0 ----- ----- 1,2,3,4,7,8-HxCDD 16.0 ----- 5.00 1,2,3,6,7,8-HxCDD 110.0 ----- 5.00 1,2,3,7,8,9-HxCDD 84.0 ----- 5.00 Total HxCDD 870.0 ----- ----- 1,2,3,4,6,7,8-HpCDF 5.9 ----- 5.00 1,2,3,4,7,8,9-HpCDF ND ----- 5.00 Total HpCDF,; 14.0 ----- ----- 1,2,3,4,6,7,8-HpCDD 1400.0 ----- 5.00 Total HpCDD 2600.0 ----- ----- Pace Analytical Services, Inc. 1700 Elm Street - Suite 200 Minneapolis, MN 55414 Tel: 612-607-1700 Matrix Solid Dilution NA Collected 10/16/2006 Received 10/16/2006 Extracted 10/24/2006 Analyzed 11 /06/2006 04:26 Internal ng's Percent Standards Added Recovery 2,3,7,8-TCDF-13C 2.00 96 2,3,7,8-TCDD-13C 2.00 88 1,2,3,7,8-PeODF-13C 2.00 75 ' 2,3,4,7,8-Pe0E-13C 2.00 77 1,2,3,7,8-PeCDD-13C 2.00 96 1,2,3,4,7,8-HxCDF-130 2.00 107 1,2,3,6,7,8-HxCDF-13C 2.00 94 2,3,4,6,7,8-HxCDF-130 2.00 94 1,2,3,7,8,9-HxCDF-13C 2.00 92 1,2,3,4,7,8-HxCDD-13C 2.00 98 1,2,3,6,7,8-HxCDD-13C 2,00 92 1,2,3;4,6,7,8-HpCDF-13C 2.00 89 1,2,3,4,7,8,9-HpCDF-130 2.00 75 1,2,3,4,6,7,8-HpCDD-13C 2.00 105 OCDD-13C 4.00 73 1,2,3,4-TCDD-130 2.00 NA 1,2,3,7,8,9-HxCDD-13C 2.00 NA 2,3,7,8-TCDD-37CI4 0.20 77 OCDF 12.0 ----- 10.00 OCDD 3600.0 ----- 10.00 Results reported on a dry weight basis Conc = Concentration (Totals include 2,3,7,8-substituted isomers) EMPC = Estimated Maximum Possible Concentration PRL = Pace Analytical Reporting Limit. A = Limit of Detection based on signal to noise B = Less than f0 times higher than method blank level P = Recovery outside of method 1613 control limits Nn = Value obtained from additional analysis Total 2,3,7,8-TCDD Equivalence: 57 ng/Kg (Using ITE Factors) I = Interference E = PCDE Interference ND = Not Detected NA = Not Applicable NC = Not Calculated J = Value below calibration range * = See Discussion Report No ..... 1040258 REPORT OF LABORATORY ANALYSIS This report shall not be reproduced, except in full, without the written consent of Pace Analytical Services, Inc. Pace Analytical Services, Inc. r 1700 Elm Street - Suite 200 Minneapolis, MN 55414 TM Tel: -607-1700acie iis A Fax: 612- 607-6444 Method 1613B Analysis Results Client - PACE Asheville Client's Sample ID BS-4-13 Lab Sample ID 927562322 Filename P611041315 Injected By BAL Total Amount Extracted 37.0 g Matrix Solid % Moisture 72.7 Dilution NA Dry Weight Extracted 10.1 g Collected 10/16/2006 ICAL Date 10/29/2006 Received 10/16/2006 CCal Filename(s) P6110413_02 Extracted 10/24/2006 Method Blank ID BLANK-11285 Analyzed 11/05/2006 12:05 Native Cone EMPC PRL Internal ng's Percent Isomers ng/Kg ng/Kg ng/Kg Standard's Added Recovery 2,3,7,8-TCDF 990.0 ----- 0.99 2,3,7,8-TCDF-13C 2.00 94 Total TCDF 1900.0 ----- ----- 2,3,7,8-TCDD-13C . 2.00 61 1,2,3,7,8-PeCDF-13C 2,00 77 ' 2,3,7,8-TCDD- 55.0 ----- 0.99 2,3,4,7,8-PeCDF-13C 2.00 79 Total TCDD 140.0 ----- ----- 1,2,3,7,8-PeCDD-13C 2.00 94 1,2,3,4,7,8-HxCDF-13C 2.00 104 1,2,3,7,8-PeCDF ----- 24 5.00 E 1,2,3;6,7,8-HxCDF-13C 2.00 96 2,3,4,7,8-PeCDF 21.0 ----- 5.00 2,3.,4,6,7,8-HxCDF-13C 2.00 89 Total PeCDF 96.0 ----- ----- 1,2,3,7,8,9-..HxCDF-13C 2.00 77 1,2,3,4,7;8-HxCDD-13C 2.00 94 1,2,3,7,8-PeCDD 32.0 ----- 5.00 1,2,3,6,7,8=HxCDD-13C 2.00 88 Total PeCDD 270.0 ----- ----- 1,2,3,4,6,7,8-HpCDF-13C 2.00 58 1,2,3,4,7,8;9-HpCDF-13C 2.00 43 1,2,3,4,7,8-HxCDF 7.4 ----- 5.00 1,2,3,4,6,7,8-HpCDD-13C 2.00 60 1,2,3,6,7,8-HxCDF ND ----- 5.00 OCDD-13C 4.00 30 2,3.,4,6,7,8-HxCDF ND ----- 5.00 1,23,7,8,9-HxCD17 ND ----- 5.00 1,2,3,4-TCDD-13C 2.00 NA Total HxCDF 61.0 ----- ---- 1,2,3,7,8,9-HxCDD-13C 2.00 NA 1,2,3.,4,7,8-HxCDD 48.0 ----- 5.00 2,3,7,8-TCDD-37CI4 0.20 56 1,2,3,6,7,8-HxCDD 600.0 ----- 5.00 1,2,3,7,8,9-HxCDD 340.0 ----- 5.00 Total HxCDD 4400.0 ----- ----- 1,2,3,4,.6,7,8-HpCDF 29.0 ----- 5.00 Total2,3,7,8-TCDD 1,2,3,4,7,8,9=HpCDF ND ----- 5.00 Equivalence; 340 ng/Kg Total HpCDF::;;: 76.0 ----- -=--- (Using ITE Factors) 1,2,3,4,6,7,8 HpCDD 5300.0 ----- 5.00 Total HpCDD 9700.0 ----- ----- OCDF 64.0 ----- 9.90 OCDD 10000.0 ----- 9.90 Results reported on a dry weight basis I =Interference Conc = Concentration (Totals include 2,3,7,8-substituted isomers). E = PCDE Interference EMPC = Estimated Maximum Possible Concentration ND =Not Detected PRL = Pace Analytical Reporting Limit. NA = Not Applicable A = Limit of Detection based on signal to noise B = Less than 10 times higher than method blank level NC = Not Calculated P = Recovery outside of method 1613 control limits J = Value below calibration range Nn = Value obtained from additional analysis # = See Discussion Report No ..... 1040258 REPORT OF LABORATORY ANALYSIS This report shall not be reproduced, except in full, without the written consent of Pace Analytical Services, Inc. 0 TM Method 1613B Analysis Results Client - PACE Asheville Client's Sample ID BS-5-A Lab Sample ID 927562330 Filename P611041313 Injected By BAL Total Amount Extracted 39.6 g % Moisture 74.7 Dry Weight Extracted 10.0 g ]CAL Date 10/29/2006 CCal Filename(s) P611041302 Method Blank ID BLANK-11285 Native Conc EIVIPC Isomers ng/Kg ng/Kg 2,3,7,8-TCDF 410.0 ----- Total TCDF 800.0 ----- 2,3,7,8-TCDD 6.9 ----- Total TCDD 35.0 ----- 1,2,3,7,8-PeCDF 5.2 ----- 43,4,7,8=1PeCDF 6.0 ----- Total PeCDF 28.0 ----- 1,2,3,7,8-PeCDD 14.0 ----- Total PeCDD 120.0 ----- 1,2,3,4,7,8-HxCDF ND ----- 1,2,3,6,7,8-HxCDF ND ----- 2,3,4,6,7,8-HxCDF ND ----- 1,2,3,7,6,9-HxCDF ND ----- Total HxCDF 12.0 ----- 1,2,3,4,7,8-HxCDD 28.0 ----- 1,2,3,6,7,8-HxCDD 160.0 ----- 1,2,3,7,8,9-HxCDD 130.0 ----- Total HxCDD 1400.0 ----- 1,2,3,4,6,7,8-HpCDF 5.4 ----- 1,2,3,4,7,8,9-HpCDF ND ----- Total HpCDF 10.0 ----- 1,2,3,4,6,7,8-HpCDD 2400.0 ----- Total HpCDD 4300.0 ----- Pace Analytical Services, Inc. 1700 Elm Street - Suite 200 Minneapolis, MN 55414 Tel: 612-607-1700 Matrix Solid Dilution NA Collected 10/16/2006 Received 10/16/2006 Extracted 10/24/2006 Analyzed 11/05/2006 10:28 PRL Internal ng's ng/Kg Standards Added. 1.00 2,3,7,8-TCDF-13C 2.00 ----- 2,3,7,8-TCDD-13C 2.00 1,2,3,7,8-PeCDF-13C 2.00 1.00 2,3,4,7,8-PeCDF-13C 2.00 ----- 1,2,3,7,8-PeCDD-13C 2.00 1,2,3,4,7,8-HxCDF-13C 2.00 5.00 1,2,3,6.,7,8-HxCDF-13C 2.00 5.00 2,3,4,6,7,8-HxCDF-13C 2.00 ----- 1,2,3,7,$,9-HxCDF-13C 2.00 1,2,3,4,7,8:1-14DDA3C 2.00 5.00 1,2,3,6,7,8-HxCDD-13C 2.00 ----- 1,2,3,4;6,7,8-HpCDF-13C 2.00 1,2,3,4,7,8,9-HpCDFA 3C 2.00 5.00 1,2,3,4,6,7,8-HpCDD-13C 2.00 5.00 OCDD-13C 4.00 5.00 5.00 1,2,3,4-TCDD-13C 2.00 ----- 1,2,3,7,8,9-HxCDD-13C 2.00 5.00 2,3,7,8-TCDD-37CI4 0.20 5.00 5.00 5.60 Total2,3,7,8-TCDD 5.00 Equivalence: 120 ng/Kg ----- (Using ITE Factors) y 11 OCD.F ND ----- 10.00 OCDD 4200.0 ----- 10.00 Results reported on a dry weight basis Conc = Concentration (Totals include 2,3,7,8-substituted isomers) EMPC = Estimated Maximum Possible Concentration PRL = Pace Analytical Reporting Limit. A = Limit of Detection based on signal to noise B = Less than 10 times higher than method blank level P = Recovery outside of method 1613 control limits Nn = Value obtained from additional analysis Percent Pprtnvary I = Interference E = PCDE Interference ND = Not Detected NA = Not Applicable NC = Not Calculated J = Value below calibration range = See Discussion REPORT OF LABORATORY ANALYSIS This report shall not be reproduced, except in full, without the written consent of Pace Analytical Services, Inc. 108 93 89 90 107 108 97 98 92 104 96 90 78 101 74 NA NA 82 Report No ..... 1040258 Pace Analytical Services, Inc. 1700 Elm Street - Suite 200 1` Minneapolis, MN 55414 aV A al TM /�f a Tel: 612 607 1700 �:J ►�/ L(� ( Fax:612-607-6444 ..�...,�1.�.._! Method 1613B Analysis Results Client - PACE Asheville Client's Sample ID BS-5-B Lab Sample ID 927562348 Filename P61105A_17 Injected By BAL Total Amount Extracted 30.2 g Matrix Solid % Moisture • 66.9 Dilution NA Dry Weight Extracted 10.0 g Collected 10/16/2006 ICAL Date 11/05/2006 Received 10/16/2006 CCal Filename(s) P61105A_09 Extracted 10/24/2006 Method Blank ID BLANK-11285 Analyzed 11/06/2006 05:15 Native Cone EMPC PRL Internal ng's Percent Isomers ------------ ng/Kg ng/Kg ng/Kg Standards Added Recovery 2,3,7,8-TCDF 110.0 ----- 1.00 2,3,7,8-TCDF-13C 2.00 88 Total TCDF 210.0 ----- ----- 2,3,7,8-TCDD-13C 2.00. 90 1,2,3,7,8-PeCDF-130 2.00 69 2,3,7,E-TCDD 6.9 ----- 1.00 2,3,4,7,8-PeCDF-13C . 2.00 70 Total TCDD 20.0 ----- ----- 1,2,3,7,8-PeCDD-13C 2.00 90 1,2,3,4,7,8-HxCDF-13C 2.00 99 1,2,3,7,8-PeCDF ND ---- 5.00 1,2,3,6,7,8-HxCDF-13.0 2.00 88 2,3,4,7,8-PeCDF ND ----- 5.00 2,3,4,6,7,8-HxCDF-13C 2.00 83 Total PeCDF 16.0 ----- ----- 1,2,3,7,8,9=HxCDF-13C 2.00 83 1,2,3r4,7,8=1-1xCDD=13C 2.00 92 1,2,3,7,8-PeCDD 7.6 ----- 5.00 1,2,3,6,7,8-HxCDD-13C 2,00 84 Total PeCDD 48.0 ----- ----- 1,2,3,4,6,7,8-HpCDF-13C 2.00 77 1,2,3,4,7,8,9-HpCDF-13C 2.00 65 1,2,3,4,7,8-HxCDF ND ----- 5.00 1,2,3,4;6,7,8-HpCDD-13C 2.00 88 1,2,3,6,7,8-HxCDF ND ----- 5.00 OCDD-13C 4.00 57 2,3,4,6.,7,8-HxCDF ND ----- 5.00 1,2,3,7,.8,9=HxCDF ND ----- 5.00 1,2,3,4-TCDD-13C 2.00 NA Total HxCDF 14.0 ----- ----- 1,2,3,7,8,9-HxCDD-13C 2.00 NA 1,2,3,4,7,8-HxCDD 15.0 ----- 5.00 2,3,7,8-TCDD-37CI4 0.20 81 1,2,3,6,7,8-HxCDD 120.0 ----- 5.00 1,2,3,7,8,9-HxCDD 85.0 ----- 5.00 Total HxCDD 960.0 ----- ----- 1,2,3,4,6,7,8-HpCDF 8.8 ----- 5.00 Total 2,3,7,8-TCDD. 1,2,3,4,7,8,9-HpCDF ND ----- 5.00 Equivalence: 65 ng/Kg Total HpCDF 20.0 ----- ----- (Using ITE Factors) ,.: 1,2,3,4,6,7,8-HpCDD 1600.0 ----- 5.00 Total HpCDD 2900.0 ----- ---- TCDF 21.0 ----- 10.00 OCDD 4500.0 ----- 10.00 Results reported on a dry weight basis I - Interference Conc = Concentration (Totals include 2,3,7,8-substituted isomers). E = PCDE Interference EMPC = Estimated Maximum Possible Concentration ND = Not Detected PRL = Pace Analytical Reporting Limit. NA =Not Applicable A = Limit of Detection based on signal to noise B = Less than 10 times higher than method blank level NC = Not Calculated P = Recovery outside of method 1613 control limits J = Value below calibration range Nn = Value obtained from additional analysis " = See Discussion Report No ..... 1040258 REPORT OF LABORATORY ANALYSIS This report shall not be reproduced, except in full, without the written consent of Pace Analytical Services, Inc. Pace Analytical Services, Inc. 1700 Elm Street - Suite 200 TM Minneapolis, MN 55414 Ailcal Tel:612-607-1700 Fax: 612- 607-6444 Method 1613B Analysis Results Client - PACE Asheville Client's Sample ID BS-6-A Lab Sample ID 927562355 Filename P61105A_14 Injected By BAL Total Amount Extracted 31.6 g Matrix Solid % Moisture 68.0 Dilution NA Dry Weight Extracted 10.1 g Collected 10/16/2006 ICAL Date 11/05/2006 Received 10/16/2006 CCal Filename(s) P61105A_09 Extracted 10/24/2006 Method Blank ID BLANK-11285 Analyzed 11/06/2006 02:50 Native Cone EMPC PRL Internal ng's Isomers ng/Kg ng/Kg ng/Kg Standards Added 2,3,7,8-TCDF 230.0 ----- 0.99 2,3,7,8-TCDF-13C 2.00 Total TCDF 460.0 ----- ----- 2,3,7,8-TCDD-13C 2.00 2,3,7,8-TCDD Total TCDD 1,2,3,7,8-PeCDF 2,3,4,7,8-PeCDF Total PeCDF 1,2,3,7,8-PeCDD Total PeCDD 1,2,3,4,7,8-HxCDF 1,2,3,6,7,8-HxCDF 2,3,4,6,7,&HxCDF 1,2,3,7;8,9-HxCDF Total HxCDF 1,2,3,4,7,8-HxCDD 1,2,3,6,7,8-HxCDD 1,2,3,7,8,9-HxCDD Total HxCDD 1,2,3,4,6,7,8-HpCDF 1,2,3,0,8,9-HpCDF Total HpCDF-.,. 1,2,3,4,6,7,8-HpCDD Total HpCDD 1,2,3,7,8-PeCDF-13C 2.00 4.4 ----- 0.99 2,3,4,7,8-PeCDF-13C 2.00 17.0 ----- ----- 1,2,3,7,8-PeCDD-13C 2.00 1,2,3,4,7,8-HxCDF-13C 2.00 ND ----- 4.90 1,2,3,6,7,8-HxCDF-13C 2.00 ND ----- 4.90 2,3,4,6,7,8-HxCDF-13C 2.00 9.3 ----- ----- 1,2,3,7,$,.9-Hx0PF-13C 2.00 1.,2,3,4,7x8-HxCDD-13C 2.00 9.1 ----- 4.90 1,2,3,6,7,8-HxCDD-13C 2.00 68.0 ----- ----- 1,2,3,4;6,7,8,HpCDF-13C 2.00 1,2,3,4,7,8;9-HpCDF-13C 2.00 ND ----- 4.90 1,2,3,4,6,7,8-HpCDD-13C 2.00 ND ----- 4.90 OCDD-13C 4.00 ND ----- 4.90 ND ----- 4.90 7.7 ----- ----- 19.0 ----- 4.90 110.0 ----- 4.90 92.0 ----- 4.90 920.0 ----- ----- ND ----- 4,90 ND ----- 4.90 ND----- ----- 1400.0 ----- 4.90 2600.0 ----- ----- OCDF ND ----- 9.90 OCDD 2800.0 ----- 9.90 Results reported on a dry weight basis Conc = Concentration (Totals include 2,3,7,8-substituted isomers) EMPC = Estimated Maximum Possible Concentration PRL = Pace Analytical Reporting Limit. A = Limit of Detection based on signal to noise B = Less than 10 times higher than method blank level P = Recovery outside of method 1613 control limits Nn = Value obtained from additional analysis , 1,2,3,4-TCDD-13C 1,2,3,7,8,9-HxCDD-13C 2,3,7,8-TCDD-37CI4 Total 2,3,7,8-TCDD Equivalence: 71 ng/Kg (Using ITE Factors) Percent Recovery 85 89 92 ' 90 102 115 106 102 101 100 92 87 78 99 96 2.00 NA 2.00 NA 0.20 82 I = Interference E = PCDE Interference ND = Not Detected NA = Not Applicable NC = Not Calculated J = Value below calibration range * = See Discussion Report No ..... 1040258 REPORT OF LABORATORY ANALYSIS This report shall not be reproduced, except in full, without the written consent of Pace Analytical Services, Inc. v G TPA Method 1613B Analysis Results Client - PACE Asheville Client's Sample ID BS-6-B Lab Sample ID 927562363 Filename P611046_14 Injected By BAL Total Amount Extracted 32.2 g % Moisture 68.7 Dry Weight Extracted 10.1 g ICAL Date 10/29/2006 CCal Filename(s) P61104B_02 Method Blank ID BLANK-11285 Native Conc EMPC PRL Isomers ng/Kg ng/Kg ng/Kg 2,3,7,8-TCDF 970.0 ----- 0.99 Total TCDF 1800.0 ----- ----- 2,3,7,8-TCDD 30.0 ----- 0.99 Total TCDD 88,0 ----- ----- 1,2,3,7,8-PeCDF ----- 34 5.00 E 2,3,4,7,8-PeCDF ----- 23 5.00 E Total PeCDF 67.0 ----- ----- 1,2,3,7,8-PeCDD 28.0 ----- 5.00 Total PeCDD 220.0 ----- ----- 1,2,3,4,7,8-HxCDF 8.6 ----- 5.00 1,2,3,6,7,8-HxCDF ND ----- 5,00 2,3,4,6.,7,8-HpCDF 8.4 ----- 5.00 1,2,3,7i8,9-HxCDF ND ----- 5.00 Total HxCDF 110.0 ----- ----- 1,2,3,4,7,8-HxCDD 51.0 ----- 5.00 1,2,3,6,7,8-HxCDD 580.0 ----- 5.00 1,2,3,7,8,9-HxCDD 330.0 ----- 6.00 Total HxCDD 4400.0 ----- ----- 1,2,3,4,6,7,8-HpCDF 60.0 ----- 5.00 1,2,3,4,7,8,9-HpCDF ND ----- 5.00 Total HpCDF�l,. 150.0 ----- ----- 1,2,3,4,6,7,8-HpCDD 6700.0 ----- 5.00 Total HpCDD 12000.0 ----- ----- Pace Analytical Services, Inc. 1700 Elm Street - Suite 200 Minneapolis, MN 55414 Tel: 612-607-1700 Matrix Solid Dilution NA Collected 10/16/2006 Received 10/16/2006 Extracted 10/24/2006 Analyzed 11/05/2006 11:17 Internal ng's Standards Added Percent Recovery _ ------------ 2,3,7,8-TCDF-13C 2.00 109 2,3,7,8-TCDD-13C 2.00 94 1,2,3,7,8-PeCDF-13C 2.00 87.1 2,3,4,7,8-PeCDF-13C 2.00 92 1,2,3,7,8-PeCDD-13C 2.00 105 1,2,3,4,7,8-HpCDF-13C 2.00 121 1,2,3,%7,8-HpCDF-13C 2.00 112 2,3,4,6,7,8-HpCDF-13C 2.00 104 1,2,3,7,8,9-HXCDF-13C 2.00 92 1,2,3.,4,7,8-.HxCDD-13C 2.00 106 1,2,3,F,7,8-HxCDD-13C 2.00 100 1,2,3,4,6,7,8-HpCDF-13C 2.00 68 1,2,3,4,7,8,9-HpCDF-13C 2.00 49 1,2,3,4,6,7,8-HpCDD-13C 2.00 70 OCDD-13C 4.00 37 1,2,3,4-TCDD-13C 2.00 NA 1,2,3,7,8,9-HxCDD-13C 2.00 NA 2,3,7,8-TCDD-37CI4 0.20 86 OCDF 69.0 ----- 9.90 OCDD 17000.0 ----- 9.90 Results reported on a dry weight basis Conc = Concentration (Totals include 2,3,7,8-substituted isomers). EMPC = Estimated Maximum Possible Concentration PRL = Pace Analytical Reporting Limit. A = Limit of Detection based on signal to noise B = Less than 10 times higher than method blank level P = Recovery outside of method 1613 control limits Nn = Value obtained from additional analysis Total 2,3,7,8-TCDD Equivalence: 320 ng/Kg (Using ITE Factors) I = Interference E = PCDE Interference ND = Not Detected NA = Not Applicable . NC = Not Calculated J = Value below calibration range * = See Discussion REPORT OF LABORATORY ANALYSIS This report shall not be reproduced, except in full, without the written consent of Pace Analytical Services, Inc. Report No ..... 1040258 TM Pace Analytical Services, Inc. 1700 Elm Street - Suite 200 Minneapolis, MN 55414 Tel: 612-607-1700 Method 1613B Laboratory Control Spike Results Client - PACE Asheville Lab Sample ID LCS-11286 Filename F61031 B 16 Matrix Solid Total Amount Extracted 20.3 g T Dilution NA ICAL Date 09/10/2006 Extracted 10/24/2006 CCal Filename F61031 B_02 Analyzed 10/31/2006 22:31 Method Blank ID BLANK-11285 Injected By SMT Lower Upper % Compound. Cs Cr Limit ~7.5 Limit Rec. 2,3,7,8-TCDF 10 8.6 15.8 86 2,3,7,8-TCDD 10 9.2 6.7 15.8 92 1,2,3,7,8-PeCDF 50 50.7 40.0 67.0 101 2,3,4,7,8-PeCDF 50 48.2 34.0 80.0 96 1,2,3,7,8-PeCDD 50 43.4 35.0 71.0 87 1,2,3,4,7,8-HxCDF 50 42.8 36.0 67.0 86 1,2,3,6,7,8-HxCDF 50 46.4 42.0 65.0 93 2,3,4,6,7,8-HxCDF 50 45.5 35.0 78.0 91 1,2,3,7,8,9-HxCDF 50 46.1 39.0 65.0 92 1,2,3,4,7,8-HxCDD 50 47.4 35.0 82.0 95 1,2,3,6,7,8-HXCDD 50 49.8 38.0 67.0 1.00 1,2,3,7,8,9-HxCDE) 50 47.6 32.0 81.0 95 1,2,3,4,6,7,8-HpCDF 50 49.7 41.0 61.0 99 1,2,3,4,7,8,9-HpCDF 50 60.9 39.0 69.0 102 1,2,3,4,6,7,8-HpCDD 50 42.1 35.0 70.0 84 OCDF 100 84.4 63.0 170.0 84 OGDD 100 89.7 78.0 144.0 90 2,3,7,8-TCDD-37CI4 10 8.0 3.1 19.1 80 2,3,7,8-TCDF-13C 100 105.0 22.0 152.0 105 2,3,7,8-TCDD-13C 100 87.8 20.0 175.0 88 1,2,3,7,8-PeCDF-13C 100 104.1 21.0 192.0 104 2,3,4,7,8-PeCDF-13C 100 107.2 13.0 328.0 107 1,2,3,7,8-PeCDD-13C 100 123.4 21.0 227.0 123 1,2,3,4,7,8-HxCDF-13C 100 104.6 19:0 202.0 105 1,2,3,6,7,8-HxCDF-13C 100 97.0 21.0 159.0 97 2,3,4,6,7,8-HxCDF-13C 100 96.9 22.0 176.0 ..97 1,2,3,7,8,9-Hx4 bF-13C 100 99.5 17.0 205.0 100 1,2,3,47,8=HXCpD-13C 100 105.5 21.0 193.0 105 1,2,3,6,7,8-HxCDD-13C 100 91.4 25.0 163.0 91 1,2,3,4,6,7,8-Hp0QF-13C 100 91.7 21.0 158.0 92 1,2,3,4,7,8,9-HpCDF-13C 100 80.8 20.0 186.0 81 1,2,3,4,6,7,8-HpCDD-13C 100 107.4 26.0 166.0 107 OCDD-13C 200 205.5 26.0 397.0 103 Cs = Concentration Spiked (ng/mL) Cr = Concentration Recovered (ng/mL) Rec. = Recovery (Expressed as Percent) Control Limit Reference: Method 1613, Table 6, 10/94 Revision X = Background subtracted value P = Recovery outside of control limits Nn = Value obtained from additional analysis Report No ..... 1040258 ' = See Discussion REPORT OF LABORATORY ANALYSIS This report shall not be reproduced, except in full, without the written consent of Pace Analytical Services, Inc. aceAnalytical ° www.pacelabs.com October 31, 2006 Mr. D.M. Cody Glatfelter Corp. 214 Camelot Dr. Clyde, NC 28721 RE: Lab Project Number: 92130091 Client Project ID: TOC/HG Dear Mr. Cody: Pace Analytical Services, Inc. 9800 Kincey Avenue, Suite 100 Huntersville, NC 28078 Phone: 704.875.9092 Fax: 704.875.9091 Pace Analytical Services, Inc. 2225 Riverside Drive Asheville, NC 28804 Phone: 828.254.7176 Fax: 828.252.4618 Enclosed are the analytical results for sample(s) received by the laboratory on October 16, 2006. Results reported herein conform to the most current NELAC standards, where applicable, unless otherwise narrated in the body of the report. Inorganic Wet Chemistry and Metals Analyses were performed at our Pace Asheville laboratory and Organic testing was performed at our Pace Charlotte laboratory unless otherwise footnoted. If you have any questions concerning this report please feel free to contact me. Sincere , rr Patton orri.patton@pacelabs.com (828) 254-7176 Project Manager Enclosures Asheville Certification IDs NC Wastewater 40 NC Drinking Water 37712 SC 99030 FL NELAP E87648 REPORT OF LABORATORY ANALYSIS This report shall not be reproduced, except in full, without the written consent of Pace Analytical Services, Inc. N At�pgO ��nAlar:4 Charlotte Certification IDs NC Wastewater 12 NC Drinking Water 37706 SC 99006 FL NELAP E87627 o - ,-race nalytical Section A Required Client Info mation: Company Address Email To: (Phone Fax Requested Due Dat /TAT: Section D Required Client Information SAMPLE ID One Character per box. (A-Z, 0_9, :) w Samples IDs MUST BE UNIQUE F" Additional Section B Required Project Information: Report To: Y Copy To: Purchase Order No.: Project Name: Project Number: atria Codes K_ CODE ING WATER DW 2 WI' = WATER WW JCT P SOLID SL OL WP AR 2 OT F TS CHAIN -OF -CUSTODY / Analytical Request Document -The Chain -of -Custody is a LEGAL DOCUMENT. All relevant fields must be completed accurately. Page: of Section 0975492 Invoice Information: REGULATORY . AGENCY Attention: L ❑ NPDES ❑ GROUNDWATER ❑ DRINKING WATER Company Name: ❑ UST ❑ RCRA ❑ Other Address: ❑GA ❑ IL ❑ IN ❑ MI ❑ MN ❑ NC Pace Quote Reference: • DOA ❑SC ❑ WI ❑OTHER Pace Project Manager: Filtered (YIN) Pace Profile #: I Requested / VF:� a O 0 d0 w F LL w0 dm COLLECTED I 0 END/GRAB N F ¢� COMPOSITE START COMPOSITE DATE TIME DATE TIME } �o r . l ``.ff\ 55 w s-- SIGNATURE SA � EAR,: A ^-% ''/ Preservatives U 2 DATE,Signed, (MM I DD I YYa I - 5-1 16: Y �aL3®aql Pace Project Number Lab 1.1) SAMPLE CONDITION z z z z z z } 3 i z z z r } i v 0 O C v. d U 9 w N 0 � 01 a U F°� o 0 to rn SEE REVERSE SIDE F1R INSTRUCTIONS Subcontracted Results P r t - wrlm ace oj ec This report includes page 1 to 13 _. Analytical 1241 Bellevue Street, Suite 9 Green Bay, WI 54302 920-469-2436, Fax: 920-469-8827 Analytical Report Number: 877399 Client: PACE ANALYTICAL SERVICES, INC. Lab Contact: Brian Basten Project Name: GLATFELTER CORP. Project Number: 92130091 Lab Sample Collection Number Field ID Matrix Date 877399-001 BS-6-A 927562462 SOIL 10/16/06 11:20 877399-002 BS-6-B 927562470 SOIL 10/16/0611:20 877399-003 BS-5-A 927562447 SOIL 10/16/0611:55 877399-004 BS-55113 927562454 SOIL 10/16/0611:55 877399-005 BS-4 A 927562421 SOIL 10/16/0612:10 877399-005 BS-4-13 927562439 SOIL 10/16/06 12:10 877399-007 BS-3-A 927562405 SOIL 10/1610612:30 877399-008 BS-3-13 927562413 SOIL 10/16/06 12:30 877399-009 BS-2-A 927562397 SOIL 10/16/06 12:55 877399-010 BS-1-A 927562389 SOIL 10116/0612:20 1 certify that the data contained in this Final Report has been generated and reviewed in accordance with approved methods and Laboratory Standard Operating Procedure. Exceptions, if any, are discussed in the accompanying sample comments. Release of this final report is authorized by Laboratory management, as is verified by the following signature. This report shall not be reproduced, except in full, without the written consent of Pace Analytical Services, Inc. The sample results relate only to the analytes of interest tested. At! ov I Signature Date Pace Analytical Anal tical Re ort Number: 877399 1241 Bellevue Street y p Green Bay, WI 54302 Services, Inc. 920-469-2436 Client: PACE ANALYTICAL SERVICES, INC. Matrix Type : SOIL Project Name: GLATFELTER CORP. Collection Date : 10/16/06 Project Number: 9213.0091 Report Date : 10/31/06 Field ID : BS-6-A 927562462 Lab Sample Number: 877399-001 INORGANICS Test Result EQL Dilution Units Code Anl Date Prep Method AM Method Mercury 0.36 0.039 1 mg/Kg 10/19/06 SW846 7471A SW846 7471A Percent Solids 25.8 — 1 % 10/19/06 SM M254OG SM M2540G TOC as NPOC 57000 31000 1 mg/kg 10/27/06 SW846 M9060 SW846 M9060 All soil results are reported on a dry weight basis unless otherwise noted. Pace Analytical Analytical Report Number: 87739 Services, Inc. Client: PACE ANALYTICAL SERVICES, INC. Project Name: GLATFELTER CORP. Project Number: 92130091 Field ID: BS-6-B 927562470 9 1241 Bellevue Street Green Bay, WI 54302 920-469-2436 Matrix Type : SOIL Collection Date: 10/16/06 Report Date : 10/31/06 Lab Sample Number: 877399-002 INORGANICS Test Result EQL Dilution Units Code Anl Date Prep Method Anl Method Mercury 2.3 0.18 5 mg/Kg 10/20/06 SW846 7471A SW846 7471A Percent Solids 28.5 — 1 % 10/19/06 SM M254OG SM M2540G TOC as NPOC 120000 53000 1 mg/kg 10/27/06 SW846 M9060 SW846 M9060 All soil results are reported on a dry weight basis unless otherwise noted. levue Pace Analytical Analytical Report Number: 877399 Green Blay, WI 54302 Services, Inc. 92GA69-2436 Client: PACE ANALYTICAL SERVICES, INC. Matrix Type : SOIL Project Name: GLATFELTER CORP. Collection Date : 10/16/06 Project Number: 92130091 Report Date: 10/31/06 Field ID : BS-5-A 927562447 Lab Sample Number: 877399-003 INORGANICS Test Result EQL Dilution Units Code An[ Date Prep Method AM Method Mercury 0.30 0.031 1 mg/Kg Percent Solids 31.8 -- 1 % TOC as NPOC 51000 45000 1 mg/kg All soil results are reported on a dry weight basis unless otherwise noted. 10/19/06 SW846 7471A SW846 7471A 10/19/06 SM M254OG SM M254OG 10/27/06 SW846 M9060 SW846 M9060 Pace Analytical Anal tical Re ort Number: Numb877399 1241 Bellevue Street y p Green Bay, WI 54302 .Services, Inc. 920-469-2436 Client: PACE ANALYTICAL SERVICES, INC. Matrix Type : SOIL Project Name: GLATFELTER CORP. Collection Date: 10/16/06 Project Number: 92130091 Report Date: 10/31/06 Field ID : BS-5-13 927562454 Lab Sample Number: 877399-004 INORGANICS Test Result EQL Dilution Units Code AM Date Prep Method AM Method Mercury 0.40 0.032 1 mg/Kg 10/19/06 SW8467471A SW8467471A Percent Solids 31.2 -- 1 % 10/19/06 SM M254OG SM M254OG TOC as NPOC 39000 27000 1 mg/kg 10/27/06 SW846 M9060 SW846 M9060 All soil results are reported on a dry weight basis unless otherwise noted_ 1241 Street Pace Analytical Analytical Report Number: 877399 Green Blay, WI 54302 Services, Inc. 920-469-2436 Client: PACE ANALYTICAL SERVICES, INC. Matrix Type: SOIL Project Name : GLATFELTER CORP. Collection Data: 10/16/06 Project Number : 92130091 Report Date: 10/31/06 Field ID : BS4-A 927562421 Lab Sample Number: 877399-005 INORGANICS Test Result EQL Dilution Units Code AM Date Prep Method Ani Method Mercury 0.37 0.033 1 mg/Kg 10/19/06 SW846 7471A SW846 7471A Percent Solids 30.4 — 1 % 10/19/06 SM M254OG SM M254OG TOC as NPOC 35000 29000 1 mg/kg 10/27/06 SW846 M9060 SW846 M9060 All soil results are reported.on a dry weight basis unless otherwise noted. 1241 ue Street Pace Analytical Analytical Report Number: 877399 Green Bay,rWl 54302 Services, Inc. 920-469-2436 Client: PACE ANALYTICAL SERVICES, INC. Matrix Type: SOIL Project Name : GLATFELTER CORP. Collection Date: 10/16/06 Project Number: 92130091 Report Date: 10/31/06 Field ID : BS-4-13 927562439 Lab Sample Number: 877399-006 INORGANICS Test Result EQL Dilution Units Code AM Date Prep Method AM Method Mercury 2.4 0.16 5 mg/Kg 10/20/06 SW846 7471A SW846 7471A Percent Solids 32.1 -- 1 % 10/19/06 SM M254OG SM M2540G TOC as NPOC 120000 58000 1 mg/kg 10/27/06 SW846 M9060 SW846 M9060 All soil results are reported on a dry weight basis unless otherwise noted. Pace Analytical Analytical Report Number: 877399 1241GreeBelle Bellevue Services, Inc. 920-469-2436 Client: PACE ANALYTICAL SERVICES, INC. Matrix Type : SOIL Project Name : GLATFELTER CORP. Collection Date : 10/16/06 Project Number: 92130091 ReportDate : 10/31/06 Field. ID :. BS-3-A 927562405 Lab Sample Number: 877399-007 INORGANICS Test Result EQL Dilution Units Code AM Date Prep Method An[ Method Mercury Percent Solids TOC as NPOC 0.46 0.039 1 mg/Kg 25.9 — 1 % 49000 37000 1 mg/kg All soil results are reported on a dry weight basis unless otherwise noted. 10/19/06 SW846 7471A SW846 7471A 10/19/06 SM M254OG SM M2540G 10/27/06 , SW846 M9060 SW846 M9060 Pace Analytical Analytical Report Number: 87739 Services, Inc. Client: PACE ANALYTICAL SERVICES, INC. Project Name: GLATFELTER CORP. Project Number: 92130091 Field ID: BS-3-B 927562413 INORGANICS Test Result EQL Dilution Units Mercury 1.9 0.042 1 mg/Kg Percent Solids 23.6 — 1 % TOC as NPOC 160000 67000 1 mg/kg All soil results are reported on a dry weight basis unless otherwise noted. 9 1241 Bellevue Street Green Bay, WI 54302 920469-2436 Matrix Type : SOIL Collection Date: 10/16/06 Report Date: 10/31/06 Lab Sample Number: 877399-008 Code Anl Date Prep Method AM Method 10/19/06 SW846 7471A SW846 7471A 10/19/06 SM M254OG SM M254OG 10/27/06 SW846 M9060 SW846 M9060 Pace Analytical Analytical Report Number: 87739 Services, Inc. Client: PACE ANALYTICAL SERVICES, INC. Project Name: GLATFELTER CORP. Project Number: 92130091 Field ID : BS-2-A 927562397 9 1241 Bellevue Street Green Bay, WI 54302 920-469-2436 Matrix Type : SOIL Collection Date : 10/16/06 Report Date : 10/31 /06 Lab Sample Number: 877399-009 INORGANICS Test Result EQL Dilution Units Code An[ Date Prep Method Anl Method Mercury 1.7 0.038 1 mg/Kg 10/19/06 SW846 7471A SW846 7471A Percent Solids 26.6 -- 1 % 10/19/06 SM M254OG SM M254OG TOC as NPOC 71000 33000 1 mg/kg 10/30/06 SW846 M9060 SW846 M9060 All soil results are reported on a dry weight basis unless otherwise noted. Pace Analytical Services, Inc. Analytical Report Number: 877399 1241 Bellevue Street y P Green Bay, WI 54302 920-469-2436 Client: PACE ANALYTICAL SERVICES, INC. Matrix Type : SOIL Project Name : GLATFELTER CORP. Collection Date : 10/16/06 Project Number: 92130091 Report Date : 10/31/06 Field ID : BS-1-A 927562389 Lab Sample Number: 877399-010 INORGANICS Test Result EQL Dilution Units Code AM Date Prep Method Anl Method Mercury 1.2 0.037 1 mg/Kg 10/19/06 SW8467471A SW8467471A Percent Solids 27.0 — 1 % 10/19/06 SM M254OG SM M2540G TOC as NPOC 95000 45000 1 mg/kg N 10/30/06 SW846 M9060 SW846 M9060 All soil results are reported on a dry weight basis unless otherwise noted. Qualifier Codes Flag Applies To Explanation A Inorganic Analyte is detected in the method blank. Method blank criteria is evaluated to the laboratory method detection limit. Additionally, method blank acceptance may be based on project specific criteria or determined from analyte concentrations in the sample and are evaluated on a sample by sample basis. B Inorganic The analyte has been detected between the method detection limit and the reporting limit. B Organic Analyte is present in the method blank. Method blank criteria is evaluated to the laboratory method detection limit. Additionally, method blank acceptance may be based on project specific criteria or determined from analyte concentrations in the sample and are evaluated on a sample by sample basis. C All Elevated detection limit. D All Analyte value from diluted analysis or surrogate result not applicable due to sample dilution. E Inorganic Estimated concentration due to matrix interferences. During the metals analysis the serial dilution failed to meet the established control limits of 0-10%. The sample concentration is greater than 50 times the IDL for analysis done on the ICP or 100 times the IDL for analysis done on the ICP-MS. The result was flagged with the E qualifier to indicate that a physical interference was observed. E Organic Analyte concentration exceeds calibration range. F Inorganic Due to potential interferences for this analysis by Inductively Coupled Plasma techniques (SW-846 Method 6010), this analyte has been confirmed by and reported from an alternate method. F Organic Surrogate results outside control criteria. G All The result is estimated because the concentration is less than the lowest calibration standard concentration utilized in the initial calibration. The method detection limit is less than the reporting limit specified for this project. H All Preservation, extraction or analysis performed past holding time. . HF Inorganic This test is considered a field parameter, and the recommended holding time is 15 minutes from collection. The analysis was performed in the laboratory beyond the recommended holding time. J All Concentration detected equal to or greater than the method detection limit but less than the reporting limit. K Inorganic Sample received unpreserved. Sample was either preserved at the time of receipt or at the time of sample preparation. K Organic Detection limit may be elevated due to the presence of an unrequested analyte. L All Elevated detection limit due to low sample volume. M Organic Sample pH was greater than 2 N All Spiked sample recovery not within control limits. O Organic Sample received overweight. P Organic The relative percent difference between the two columns for detected concentrations was greater than 40%. Q All The analyte has been detected between the limit of detection (LOD) and limit of quantitation (LOQ). The results are qualified due to the uncertainty of analyte concentrations within this range. S Organic The relative percent difference between quantitation and confirmation columns exceeds internal quality control criteria. Because the result is unconfirmed, it has been reported as a non -detect with an elevated detection limit. U All The analyte was not detected at or above the reporting limit. V All Sample received with headspace. W All A second aliquot of sample was analyzed from a container with headspace. X All See Sample Narrative. Z Organics This compound was separated in the check standard but it did not meet the resolution criteria as set forth in SW846. & All Laboratory Control Spike recovery not within control limits. All Precision not within control limits. + Inorganic The sample result is greater than four times the spike level: therefore, the percent recovery is not evaluated. < All The analyte was not detected at or above the reporting limit. 1 Inorganic Dissolved analyte or filtered analyte greater than total analyte; analyses passed QC based on precision criteria. 2 Inorganic Dissolved analyte or filtered analyte greater than total analyte; analyses failed QC based on precision criteria. 3 Inorganic BOD result is estimated due to the BOD blank exceeding the allowable oxygen depletion. 4 Inorganic BOD duplicate precision not within control limits. Due to the 48 hour holding time for this test, it is not practical to reanalyze and try to correct the deficiency. 5 Inorganic BOD result is estimated due to insufficient oxygen depletion. Due to the 48 hour holding time for this test, it is not practical to reanalyze and try to correct the deficiency. 6 Inorganic BOD laboratory control sample not within control limits. Due to the 48 hour holding time for this test, it is not practical to reanalyze and try to correct the deficiency. 7 Inorganic. BOD result is estimated due to complete oxygen depletion. Due to the 48 hour holding time for this test, it is not practical to reanalyze and try to correct the deficiency. Pace Analytical Analysis Summary by Laboratory 1241 Bellevue Street Services, Inc. Green Bay, WI 54302 J J J J co J J J J J W W W W W W W W W W (WO (0O (�O w f00 (0D (WO 0 (D 0 0 Test Group Name 0 C> 0 w 0 0 0 w 0 0 0 o0 0 0 0 o' MERCURY B B B B B B B B B B PERCENT SOLIDS B B B B B B B B B B TOC AS NPOC K K K K K K K K K K Code Facility Address NC Certification B Green Bay Lab (Bellevue St) 1241 Bellevue Street, Suite 9 Not Certified Green Bay, WI 54302 K Kimberly Laboratory 1090 Kennedy Ave. Not Certified Kimberly, WI 54136 i- 30 Patewood Drive, Suite 100 Greenville, SC 29615-3535 Telephone (864) 281-0030 Fax (864) 281-0288 I I I OFF, C E 0 W E l� DEC 1; 2006 WATER QUALITY SECTION ASHEVILLE REGIONAL OFFICE Sediment and Fish Tissue Sampling Report French Broad and Davidson Rivers in the Vicinity of Pisgah Forest, North Carolina P.H. Glatfelter Company December 2006 RECEIVED AFC 15 2006 ,Aftivdll l a l 6 1 t I 9!/ Daryl J. i Robert W. Hanley, P .D. Project Manager Client Service Manager 1: \WPGVL \ PJT \ 00-71708 \ 01 \ R007170801-00].DOC Table of Contents 1. Introduction......................................................................................................................................1 2. Sampling Approach........................................................................................................................ 2 2.1 Fish Tissue Samples.............................................................................................................. 2 2.2 Sediment Samples................................................................................................................. 3 3. Results and Observations............................................................................................................... 5 3.1 Sediment Results and Observations................................................................................... 5 3.2 Fish Tissue Results and Observations................................................................................ 6 4. References......................................................................................................................................... 9 List of Tables Table 1 Sediment Sample Locations in the Davidson and French Broad Rivers Pisgah Forest, North Carolina .................... ............................................................ 3 Table 2 Average Mercury Concentrations in Davidson and French Broad Rivers Pisgah Forest, North Carolina................................................................................ 6 Table 3 Whole Body Fish Tissue Samples from the Davidson and French Broad Rivers Pisgah Forest, North Carolina.................................................................... 7 Table 4 Summary of State-wide and Regional Mercury Measurements in Fish Tissue......................................................................................................................... 8 List of Appendices Appendix A Sediment and Fish Tissue Sample Location Map — Figure 1 Appendix B Analytical Reports and Field Notes Appendix C Fish Photograph i 1: \WPGVL\ PIT\ 00-71708 \ 01 \ R007170801-001.DOC December 2006 Section 1 Introduction RMT, Inc. (RMT) was contracted by P.H. Glatfelter Company (Glatfelter) to collect and analyze fish tissue and sediment samples from the Davidson and French Broad Rivers in the vicinity of Pisgah Forest, North Carolina. The purpose of this project was to provide a snapshot of current mercury concentrations in fish tissue and sediments near a pulp and paper mill, formerly owned by Glatfelter. From 1948 until 1973, during the period when the facility was owned and operated by Olin Corporation (Olin), the mill generated its own chlorine and caustic utilizing the mercury cell variation of the chlor-alkali process. During this period, an undetermined amount of mercury may have been discharged to the Davidson River through a wastewater discharge channel. The production of chlorine and caustic ceased in 1973 when the mercury cell process was shut down and removed by Olin. 1 1AwPGvt\PIT\00-71708\01\R007170801-007.Doc December 2006 Section 2 Sampling Approach As part of this sampling effort, RMT and Glatfelter identified sampling locations that provided the maximum amount of information on the mercury concentrations in the aquatic environment around the mill. Sampling stations were selected, based on historical wastewater discharge points for the mill to include an upstream area for background concentrations, areas directly below discharges, and a farther -downstream location to assess the potential for downstream impacts. Initially, five potential sampling areas were identified as: 1. One location in the French Broad River, below the City of Brevard wastewater treatment plant (WWTP) discharge and above the confluence with the Davidson River; 2. One location in the Davidson River, near the confluence with the French Broad River and downstream from historical chlor-alkali plant wastewater discharges; 3. One location in the French Broad River between the confluence with the Davidson River and the aerated stabilization basin (ASB) wastewater discharge point; 4. One location in the French Broad River, directly below the ASB wastewater discharge point; and 5. One location approximately a'/z mile downstream from the ASB wastewater discharge point on the French Broad River. These locations were then evaluated during a site reconnaissance by RMT and Glatfelter for the potential to yield representative fish species and support collection of discrete sediment core samples while minimizing vertical mixing of the sediments. Of these locations, four areas were found to be adequate for both fish tissue and sediment sample collection. Due to the flow regimes present, the area between the mouth of the Davidson River and the ASB wastewater discharge point (location #3, above) did not have adequate sediment present for sampling and was not included in the sampling program. 2.1 Fish Tissue Samples The fish tissue collection efforts were performed by Shealy Environmental Services, Inc. (Shealy), with RMT oversight. Fish tissue samples were collected from the four screening locations on the Davidson and French Broad Rivers, as identified above (Locations #1, #2, #4, and #5), and analyzed for mercury consistent with United States Environmental Protection Agency (USEPA) Guidance for Assessing Chemical Contaminant Data for Use in Fish Advisories (USEPA, 1A WPGVL\ PIT% 00-71708N 01 \R007170801-00I.DOC December 2006 2000). Fish tissue collection was conducted in conjunction with RMT's sediment sampling efforts described in Subsection 2.2. At each screening site, one composite each of one bottom feeding fish species and one predator fish species were collected. The individual fish making up each composite were packaged and labeled, placed on ice, and shipped overnight to Brooks Rand Ltd. in Washington for analysis. All tissue sample preparation was performed by Brooks Rand Ltd. Whole body composite samples were analyzed for low level mercury using USEPA Method 1631 and methyl mercury using USEPA Method 1630. 2.2 Sediment Samples Sediment cores were collected by RMT using a modified WaterMark Universal Core Sediment Sampler. Three sediment cores were collected from each sampling area on the Davidson and French Broad Rivers, as identified above, within the extents of the areas where fish tissue samples were collected. Table 1 presents sediment sample location information. Table 1 Sediment Sample Locations in the Davidson and French Broad Rivers Pisgah Forest, North Carolina 4SAMPLE .� - SAMPLE ID' SAMPLE'COORDINt1TES S AMPLE x ,SAMP;I - t LOCATION DATE NUMBER NORTH EAST LA ITUDE LONGrrutml = Davidson River 10/17/06 DR-I-SED1 567,392.7851 897,816.1298 35' 15' 09.6569" 82' 41' 33.9718" 10/17/06 DR-1-SED2 567,411.8642 897,845.5331 35° 15' 09.8563" 82° 41' 33.6261" 10/17/06 DR-1-SED3 567,407.8559 897,849.9978 35° 15' 09.8184" 82° 41' 33.5705" French Broad River 10/18/06 FB-I-SED-1 567,102.8078 896,127.7496 35° 15' 06.1690" 82° 41' 54.1871" — Upstream 10/18/06 FB-1-SED-2 567,058.8350 896,144.7885 35° 15' 05.7406" 82° 41' 53.9621" 10/18/06 FB-1-SED-3 567,046.7132 896,149.4855 35° 15' 05.6225" 82° 41' 53.9000" French Broad River 10/18/06 FB-2-SED-1 566,852.3732 898,090.4770 35° 15' 04.4160" 82° 41' 30.4236" — At ASB Discharge 10/18/06 FB-2-SED-2 566,838.6541 898,087.6868 35° 15' 04.2794" 82° 41' 30.4510" 10/18/06 FB-2-SED-3 566,788.6772 898,077.5226 35° 15' 03.7816" 82° 41' 30.5511" French Broad River 10/18/06 FB-3-SED-1 565,649.9728 900,731.4486 35° 14' 53.5007" 82° 40' 58.0616" — Downstream 10/18/06 FB-3-SED-2 565,637.9830 900,731.9441 35' 14' 53.3824" 82' 40' 58.0502" 10/18/06 FB-3-SED-3 565,580.0000 900,735.0000 35° 14' 52.8100" 82° 40' 57.9633" 1:\WPGVL\PIT%00-71708\01\R007170801-001.DOC December 2006 Each sediment core was divided into two depth intervals for analysis. The upper 4 inches of each core was segregated into a sample to represent the sediment surface and the remaining deeper interval of each core was segregated into a sample to represent the sediment subsurface. This resulted in six samples (3 surficial and 3 deep) from each of the four river locations where fish samples were collected, for a total of 24 samples. The sediment samples were prepared and packaged for delivery to Pace Analytical Services, Inc. (Pace) in Asheville, North Carolina for analysis. Each sample was analyzed by USEPA Method 7471-A for mercury, with a standard detection limit of 0.05 mg/kg (dry weight basis). Each sample was also analyzed for percent moisture and total organic carbon (TOC). 4 1: \WPGVL \ PJT\ 00-71708 \01 \ R007170801-007.DOC December 2006 Section 3 Results and Observations The Davidson River is a classic trout water, exhibiting a riffle and pool complex with cold, clear water and a gravel, cobble and boulder substrate. The Davidson River ranges in depth along the sampled stretch from approximately 1-foot deep, to pools of greater than 6-feet deep. Sediment and fish tissue sampling on the Davidson River was performed by wading. In the sampled stretch, the French Broad River is calmer in appearance than the Davidson River, with large flat stretches between short sections of riffles. The depth of the French Broad was not measured, but required a boat for sampling. These rivers are both relatively fast -flowing rivers, with the Davidson River being the faster of the two. 3.1 Sediment Results and Observations Sediment deposits were limited in both rivers, but especially so in the Davidson River. Typical sediment deposits in the Davidson River were very sandy and not more than a few inches deep along sandbars and in eddies. Where deeper sediments were encountered, distinct layers of organic material and sandy material were observed. It is suspected that these layers are reflective of annual deposition cycles with leaf debris depositing in the fall and sandy geological erosion materials being deposited year-round. Not more than three layers of organic -rich sediment were observed in any sediment core. It is believed that both rivers are periodically scoured by heavy rains and seasonal flows, which limit the sediment record present. Following sample collection, the coordinates of each sediment sample collection point and the upstream and downstream extents for fish tissue sample collection were located by a registered land surveyor. The exact coordinates for the sediment cores were presented previously in Table 1. This information was overlaid on an aerial photograph (USGS March 15, 1998) of the site. Figure 1 in Appendix A depicts the sediment sampling locations and the extents for fish tissue collection along each stretch of the two rivers. Average mercury concentrations are summarized in Table 2 by location for surficial sediments, deep sediments and the entire sediment profile. Individual sediment sample results are presented in Appendix B, along with the laboratory analytical reports, field notes, and chain of custody forms. These analytical results indicate that the mercury content of sediment samples from the Davidson and French Broad Rivers are relatively low. The average mercury concentrations in sediments are below the USEPA Region 4 Waste Management Division Sediment Screening Values for Hazardous Waste Sites value of 0.13 mg/kg'. Only one individual sample, a shallow sediment sample collected in the French 1 USEPA. 2001. Supplemental Guidance to RAGS: Region 4 Bulletins, Ecological Risk Assessment. Table 3. Originally published November 1995. Website version last updated November 30, 2001: http://www.epa.gov/reaio114/waste/ots/ecolbul.htm. Downloaded November 28, 2006. 1: \ WPGVL \ PIT \ 00-71708 \ 01 \ R007170801-00I.DOC December 2006 Broad River upstream from the confluence of the Davidson River, which was collected as being representative of background concentrations, was greater than the screening value at 0.19 mg/kg. The average mercury concentration for all of the shallow sediment samples collected.at the upstream location was 0.077 mg/kg dry weight. Table 2 Average Mercury Concentrations in Davidson and French Broad Rivers Pisgah Forest, North Carolina 'AVERAGE ". .(, tiAVERAGE SAMPLE , SAMPLE MER`CL iY AVERAGE ; : j LOCATION TYPE CONTENT'ERCENT r + 'Ala mK r SOS IDS m$�K� �t Y� ���+ �°✓* ' 44. i �< x !k,';2 .w t, hr [�.$. i �<.'.-w `S y` ldy���}' ��y <t J'�U� 4 : ��-.�.a�� \d1�Awt1_3s1s-ter' Davidson River Surficial Sediment 0.054 61.4 37,300 Deep Sediment 0.066 58.9 68,267 Entire Sediments Profile 0.060 60.2 52,783 French Broad River Surficial Sediment 0.077 52.7 14,400 Deep Sediment 0.050 50.5 27,333 — Upstream Entire Sediments Profile 0.063 51.6 20,867 French Broad River Surficial Sediment 0.019 72.5 6,777 Deep Sediment 0.012 72.7 1,680 — At ASB Discharge Entire Sediments Profile 0.015 72.6 4,228 French Broad River Shallow Sediment 0.017 67.3 10,633 Deep Sediment 0.021 65.2 12,233 — Downstream All Sediments 0.019 66.3 11,433 It was observed that the mercury content of the sediment samples correlated to the TOC content of the samples, with relatively higher mercury concentrations correlated with increasing TOC. This result is expected, considering that mercury preferentially adsorbs to organic materials. 3.2 Fish Tissue Results and Observations The whole body fish tissue sample results are presented in Table 3. The highest concentrations were observed in the fish caught in the vicinity of the discharge point of the ASB treatment system. Both the predator (largemouth bass) and bottom feeder (carp) species had monomethylmercury concentrations greater than the USEPA Ambient Water Quality Criterion for the protection of human health concentration of 0.30 mg methylmercury/kg of fish tissue' The largemouth bass monomethylmercury concentration was 1.85 mg/kg (wet weight), while the carp concentration was 0.339 mg/kg (wet weight). 2 USEPA. 2001. Water Quality Criterion for the Protection of Human Health: Methylmercury. EPA-823-R-01-001. USEPA Office of Science and Technology, Office of Water. Washington, DC. http://www.epa.gov/waterscience/criteria/methylmercury/document.html Downloaded November 28, 2006. 6 1. \WPGVL \ PIT \ 00-71708 \ 01 \ R00717080I-001.DOC December 2006 It should be noted that these concentrations are for whole body tissue samples, including organs, bone and skin, which are not typically consumed by humans. Table 3 Whole Body Fish Tissue Samples from the Davidson and French Broad Rivers Pisgah Forest, North Carolina i r � r* MERCURY MONOMET�IYL' z K ' r 4} x SAMPLE 14, MERCURX SAMPLE k r w ID 4#SSUE TI x FISHTISSUE' LQCATION' DATE r NL)MBER Y, TYPE F >sig/kg Wt) 4(wet Davidson River 10/17/06 DR-1-F-COMPA-1 Brown Trout (Stocked) 0.0183 0.0095 10/17/06 DR-1-F-COMPA-2 Brook Trout (Native) 0.3 0.259 10/17/06 DR-1-F-COMPB Northern Hogs Head Sucker 0.187 0.154 French Broad River 10/18/06 FB-I-COMPA Blue Gill 0.123 0.094 — Upstream 10/18/06 FB-I-COMPB Carp 0.254 0.111 French Broad River 10/18/06 FB-2-COMPA Largemouth Bass 1.97 1.85 — At ASB Discharge 16/18/06 FB-2-COMPB Carp 0.609 0.339 French Broad River 10/18/06 FB-3-COMPA Blue Gill 0.265 0.204 — Downstream 10/18/06 FB-3-COMPB Carp 0.228 0.135 In the fish caught at the ASB discharge site, the total mercury concentrations were 1.97 mg/kg and 0.609 mg/kg for the largemouth bass and carp, respectively. These concentrations are comparable to both statewide and regional mercury concentrations documented in the literature, some of which are presented in Table 4. However, the majority of the information available for regional and national surveys is based on fish tissue fillets, rather than whole body samples. While correlations are difficult to predict, it is expected that mercury concentration in fillets are generally lower than in whole -body . samples due to the inclusion of the internal organs which preferentially accumulate mercury at a higher rate than the muscle tissue of the fillet. Mercury has a tendency to bioaccumulate and biomagnify in the food web. The largemouth bass was an unusually large single fish, not typical for this water body, measuring 22 inches and weighing 8 pounds. Based on the size of the fish and the scars and damage visible on this fish, particularly on the bottom of the caudal fin, it was an old individual. A photograph of this fish is included in Appendix C. It was observed that the two trout species caught in the Davidson River had significantly different mercury concentrations. This observation was not unexpected considering the brown trout was believed to be stocked in the river by sport fishing outfitters who lease property along the river for guided fishing tours. The brook trout were believed to be native to the river, since the outfitters have no record of having stocked brook trout. The brown trout was a single individual fish, of approximately 22 inches. The brook trout composite consisted of two individual fish, one of approximately 12 to 14 inches, which is large for the species, and the other smaller, at approximately 8 inches. A stocked trout would be 7 1: \WPGVL \ PIT \ 00-72708 % \ R007170801-00I.DOC December 2006 expected to have a lower lifetime mercury exposure since is would be fed prepared, processed feedstock, rather than feeding on lower-trophic organisms in the natural food web. The mercury concentrations in bluegill and carp tissue samples from the French Broad River both upstream and downstream of the ASB discharge are relatively similar and within the range of concentrations observed in the national mercury survey data presented in Table 4. Based on the limited number of samples, the results do not indicate a significant difference in mercury concentrations between background and the downstream samples. There was no observed correlation between mercury concentrations in the sediments and mercury concentrations in fish tissues. Table 4 Summary of State-wide and Regional Mercury Measurements in Fish Tissue s STTE MIN MAX MEALY MEDIAN n SOURCE x' NOTES State-wide Nat'l Hg Survey, NC 0.020 3.600 0.532 0.390 1327 USEPA,1990- Large mouth bass, — LM Bass 1995 com osite sam les Nat'l Hg Survey, NC 0.020 0.780 0.186 0.160 304 USEPA, 1990- Bluegill sunfish, composite — Blue ill 1995 samples Regional USGS, Santee River Basin 0.471 1.803 0.803 0.572 5 USGS Pilot Large mouth bass, fillets only Study, 2001 USGS, South Florida Basin 0.37 4.22 1.35 0.74 6 USGS Pilot Large mouth bass, fillets only Study, 2001 Soil Erosion Lake, GA 0.59 1.33 0.87 0.83 7 USGS, 1999 Large mouth bass, fillets Gordon Lake, GA 0.08 0.53 1 0.23 1 0.22 8 USGS, 1999 Large mouth bass, fillets Lower Leitner Lake, GA 0.54 0.95 0.74 1 0.72 10 USGS, 1999 Large mouth bass, fillets l:\WPGVL\PIT\00-77708\01\R007170801-001.DOC December 2006 Section 4 References Brumbaugh, W. G., et. al. 2001. A National Pilot Study of Mercury Contamination of Aquatic Ecosystems Along Multiple Gradients: Bioaccumulation in Fish, USGS/BDR/BSR-2001-0009, iii and 25pp. Gregory, M.B., T.C. Stamey, and J.B. Wellborn. 2001. Ecological Characterization of Streams and Fish -Tissue Analysis for Mercury and Lead at Selected Locations, Fort Gordon, Georgia, June 1999-May 2000. USGS Open File Report 01-203. USEPA. 1999. The National Survey of Mercury Concentrations in Fish, Data Base Summary, 1990-1995.- USEPA. 2001. Supplemental Guidance to RAGS: Region 4 Bulletins, Ecological Risk Assessment. Table 3. Originally published November 1995. Website version last updated November 30, 2001: http://www.epa.gov/region4/ivaste/ots/ecolbul.htm. Downloaded November 28, 2006. USEPA. 2001. Water Quality Criterion for the Protection of Human Health: Methylmercury. EPA-823-R-01-001. US EPA Office of Science and Technology, Office of Water. Washington, DC. httU://www.el2a.gov/waterscience/criteria/methylmercurv/document.htmI Downloaded November 28, 2006. 9 l: \ WPGVL \ PJT \ 00-71708 \ 01 \ R007170801-007.DOC December 2006 1 Anal 1. \WPGVL \ P/T \ 00-71708 \01 \ R007170801-001.DOC Appendix B ical Reports and Field Notes B-1 December 2006 aceAnalytical www,pacelabs.com October 31, 2006 Mr. D.M. Cody Glatfelter. Corp. 214 Camelot Dr. Clyde: NC 28721 Pace Analytical Services, Inc. 9800 Kincey ilvenue, Suite 100 Huntersville, NC 28078 Phone: 704.875.9092 Fax., 704.875.9091 Pace Analytical Services, Inc. 2225 Riverside Drive Asheville, NC 28804 Phone: 828.254.7176 Fax., 828.252.4618 RE: Lab Project Number: 92130169 Client Project ID: Sediment Project TOCs/HG Dear Mr. Cody: Enclosed are the analytical results for sample(s) received by the laboratory October 17. 2006through October 18. 2006 Results reported herein conform to the most current NELAC standards, where applicable, unless otherwise narrated in the body of the report. Inorganic Wet Chemistry and Metals_ Analyses were performed at our Pace Asheville. I aboratory and Organic testing was performed at our Pace Charlotte laboratory unless otherwise footnoted. If you have any questions concerning this report, please feel free to contact me. yinceon. on@pacelabs.com (828) 254-7176 Project Manager Enclosures Asheville Certification IDs NC Wastewater 40 NC Drinking Water 37712 Sc 99030 FL NELAP E87648 REPORT OF LABORATORY ANALYSIS This report shall not be reproduced, except in full, without the written consent of Pace Analytical Services, Inc. o a �crogo ;Helms Charlotte Certification IDs NC Wastewater 12 NC Drinking Water 37706 SC 99006 FL NELAP E87627 Subcontracted Results Pace Project # qa 1301 6Q This report* includes page I to 30 P _AceAnalyfical" LomAIN-10IF-CUS1 wuY r mlialytical mequest Document The Chain -of -Custody is a LEGAL DOCUMENT. All relevant fields must be completed accurately, I -- Page: of !Section A Section B Section C Required Client Information: Required Project Information: Invoicenorma Information: 1046523 Company Report To: Attention: REGULATORY AGENCY Address Copy To: Company Name: NPIDES rl GROUNDWATER 0 DRINKING WATER 0 UST 0 RCRA 0 Other • Address:• Email To: Purchase Order No.: Pace Quote Reference: OGA IDIL OOH OSC OIN DMI 0 MN )INC AW1 CIOTHER_ PhoTjj_kk\4�_q�� Fax Project Name: Pace Project Manager Requested Due DaterrAT., Project Number. Pace Profile #: Filtered (YIN) Requested Valid MatiX Codes Section D Required Client Information MATRIX CODE o '-Preservadves Analysts: DRINKING WATER ON WATER WT LL1 0 LUCLO2 0. Z 20 w SAMPLEM WASTE WATER WW 0 Q �:o One Character per box. PRODUCT P SOILISOLID SL OIL OL WIPE WP X i W8 -,in 1. COLLECTED LU W� ::J (L 0- a 0 (A-Z, 0-9 /.-) AIR AR COMPOSITE START COMPOSITE ENDIGF�AEI 0 . R. (7 " 3: I Pace Project Samples I Ds MUST BE UNIQUE OTHER OT TISSUE 0 DATE TIME DATE. TIME " . . 0 U 0 !� -- 2 Nui Number QLab . z 2 LD f C 0 )d X D 'RZ IF C AMP :3 3 11 S E10k B I ia-, I S 0 7-, A '7 r7k il— S WD 3 -Al PhZ S It ACCEPT Y I AFFILIATION SAMPLE CONDITION Additional Comments- zzp, z 3z: 'SAMPLER NAME SIGNATURE 7AND PRINT Name 0 S E E SEE REVERSE SIDE FOR INSTRUCTIONS I ORIGNAL SIGNATURE *qLER DATE Signe d (MMJ CD I YY) CHAIN-OF-CUSTODY-1 Analytical.Request Document ® The Chain -of -Custody is a LEGAL DOCUMENT. All relevant fields must be completed accurately, .�-' . �........�.� _..,�. Page: � of Section A Section 13, Section.0 �'j�� /� Required Client Information: Required Project Information: Invoice Information: ' 10 �4 6'5 2 3 Company ReportTo: Attention: REGULATORY AGENCY Address Copy To: Company Name: ❑ NPDES ❑ GROUNDWATER 0 DRINKING WATER ❑ UST ❑ RCRA ❑ Other Address: e ❑GA OIL ❑IN ❑MI- 0IIN::>1NC Email To: Purchase Order No.: Pace Quote Reference: MOH ❑SC /�g WI ❑OTHER ` Phpp„ 9-1 Project Name: " Pace Project Manageri 1 Filtered (YIN) Requested Due. Date/TAT: Project Number: Pace Profile #: Requested Analysis: ' Section D Required Client Information Valid Mebb: Codes MATRIX CODE CL Presewa6ves SAMPLE I D DRINKING WATER DW WASTWATEE WATER 1 W w lug 0 v a o rn � v W it PRODUSOIL(SCTSL X � °� COLLECTED 0 a . K ¢ Z , Zee �e ' One Character per box. OIL OL g I 6 ON c (A-Z. 0-9 :) WIPE WP AIR AR �U. COMPOSITE START COMPOSITE ENDlGRAB N F V tz H c ? o M x W a Pace Project Number Samples IDs MUST BE UNIQUE OTHER OT TISSUE' TS [)ATE TIME DATE TIME N z O m m �. X. z .x. z..� Q• Lab LID DW'vWw X s 1 1 1`' x n z b x - e . s • .ACCEPTED BY I AFFILIATIONDATE TIMEIM,;SAMPLE CONDITION Additional Comments: fO l7 77 > } z U 7PRIINTNarns; AMPmSEE REVERSE SIDE FOR INSTRUCTIONS URE of LER�'/��/� /1y� lr'! / ' /qr . / AWNK DAT/E S gned/(MM DD I yy) / /I / / - 1< o v y N Al 1 Ml)r—q 9f �AeTS Ar� .I4 ...=PaceAnalytical' �nHiN-ur-Gus tioul", Anaiyucal Request Document The Chain -of -Custody is a LEGAL DOCUMENT. All relevant fields must be cofnplt ted accuratei , Section A Section B Section C Page: of Required Client Information: Required Project Infotmation: Invoice Information: 1 a 4 6 5 2 2 Company G� e� Report To: Cj ' ' � Attention: REGULAT• _ Y AGENCY Address Copy To: Company Name: U NPOES ❑ GROUNDWATER ❑ DRINKING WATER ❑ UST ❑ RCRA ❑ Other Address: Email To: Purchase Order No.: Pace Quote Reference: • • OGA OIL ❑ IN ❑ MI ❑ MN ` 0C OOH OSC ❑ WI OOTHER Phone n i� f u �qy Ia �y Fax J tYb Project Name: Pace Project Manager: Requested Due Date/TAT: Project Number: Pace Profile #: Filtered (YIN) Requested Section D Required Client Information Valid Matrix Codes MATRIX CODE d Analysis: Presbni6ve• DRINKING WATER DW W o 'L OZ rn SAMPLE I D WASTE WATER WSW U �0 U �° �+ One Character per box. sotu OLID sl OIL OL _x dm COLLECTED COMPOSITE START COMPOSITE END/GRAB. J a. °� o: Z r U $ _ isK/' 0 °cm j.° 41/ [ 3o r& (A-Z, 0-9 / -) W AIR AR y < v DJ• ~ Samples IDs MUST BE UNIQUE OTHER oT TISSUE 7S t7 DATE TIME DATE TIME a m O C r c. N z U a m e°j Pace Project Number Q _ x x x .z M i5 Lab I.D X xx 10�6. x 7rs731/3 S V_ VD)IbisX 5 F_D-� x I X 3 A. --_y-•-•—__ --_ Additional Comments: • ' ° • ' ' • = • • ' SAMPLE CONDITION !b - 17, oG S 7•`7 P3 z z z r SAMPLER NAME AND SIGNATUREy PRINT Name of SAMPLER: J; SIGNATUR�ot %.1 V d a @$ 5 c V SEE REVERSE SIDE FOR INSTRUCTIONS ORIGINAL SA P�LIER�,, �1,1 /J� �"� �' F G� ' DATE/Signs/d . -- Arp,4ag vtirAI CHAIN -OF -CUSTODY 1 Analytical Request Document The Chain -of -Custody is a LEGAL DOCUMENT. All relevant fields must be completed accurately. Page: of Section A Required Client Information: Section 8 Required Project Information: Section. C Invoice Information: 0 46522 Company nn j Report To: (�.� Attention:REGULATORY AGENCY Address Copy To: Company Name: NPDES El GROUNDWATER D DRINKING WATER D ,UST ❑ RCRA D Oth®r Address: OGA OIL D IN 0 MI. , ElMN >4NC Email To: Purchase Order No.: Pace Quote Reference: • DOH USC ElWI OOTHER Phone Fax ~ � � � � , � � Project Name: Pace Project Manager: t (•' Filtered (YIN) Requested Due DateITAT: Project Number: Pace Profile #: Requested Valid Matrix Codes Analysis, Section D ' Required Client Information MATRIX CODE DRINKING WATER OW a. Z Proservadves W WATER T w w2 n.0 a w SAMPLE I D WASTE WATER W W ❑ O �-n F V w rs `co PRODUCT P SOIL/SOLID SL O x U �m COLLECTED w w J LL 2 O Q " z o ,� One Character per box. OIL OL CL¢ o O O m O J (A-Z, 0-9 / .) WIPE WP AIR AR ¢� �i'� COMPOSITE START COMPOSITE END/GRAB ¢ h ¢ O y c O "' _ `� m io n 1� y Pace Project Number Iw Samples IDs MUST BE UNIQUE HER os O DATE TIME DATE TIME 1 N z ai � I s } Q°, TOI ❑ 2 x x z z Lab 1.0 X X _AIL X {;� t• k C 5 ID1 ..r� + K it r, - • .: • .ACCEPTED BY I AFFILIATION• ' SAMPLE CONDITION Additional Comments: z z <e _ e SIGNATURE SAMPLER O m PRINT Name of SAMPLER: r.. E SEE REVERSE SIDE FOR INSTRUCTIONS���., SiGNATU f S L);R:' ` DATE Signed (MMJ DO ! YY) %d AceAna1j6ca( CHAIN -OF -CUSTODY I Analtical Request Document The Chain -of -Custody Is a LEGAL DOCUMENT. All relevant fields Must be completed accurately. Page: of REGULATORY AGENCY Company Name: ■ AL-PIMT, Purchase Order No.: Pace Ouote Reference: U=-W "il— MMON Emil■111■11 8=11111 I Room a■�■ � ■■■■■ ". N— 0 MINIIIIIII III NONNI ROMMOMMORMENSO■ 11MOMOMM. 11MERINIIIIIIII111111 11111MIN lNil mill■ I mv, 2115 N 0 1011 0 FIR 1 021110■0 0 0 IN R = INE ommiligligilloo■mill M11113111■11113111■mill 11■mill 1 ONE mill DATE ACCEPTED L BY I AFFILIATION DATE TIME RELINQUISHED BY I AFFILIATION I Additional Comments, SIGNATURE SAMPLER NAME AND ZEE REVERSE SIDE FOR INSTRUC-nONS tl m. CHAIN -OF -CUSTODY /Analytical Request Document The Chain -of -Custody is a LEGAL DOCUMENT. All relevant fields must be completed accurately. DAna A hJil" "f 4 13 1 LA L/w I" F_y L I %.�L41 Page: of Section A Section B Section C 1046526 Re Client Information:. Required Project Information: Invoice Information:.. Company Report To: 1 Attention 'ONP—DES REGULATORY AGENCY 0 GROUNDWATER F 0 DRINKING WATER Address Copy To: Company Name: 0 UST 0 RCRA El Other Address: OGA OIL 0 IN 0 MI * 0 MN --q.NC Email To: Purchase Order No.: Pace Quote Reference; OOH OSC -QWI 0 OTHER Phone,fi, "i- Fax Project Name: Pace Project Manager: . . Filtered (Y1 N) Requested Due Date/TAT- Project Number: Pace Profile #: Requested Analysis: Section D Required Client Information Valid Matrix Codes MATRIX CODE Preservatives' DRINKING WATER DW WATER WT Lu W2 a ILC Z 0 SAMPLE ID WASTE WATER WW 0 L)UJQ PRODUCT P SOILISOLID SL 511, COLLECTED 0 ." �z One Character per box, OIL OL 0 (A-Z, 0-9 1.-) WIPE WP AIR AR COMPOSITE S TART COMPOSITE END/GRAB < (0 0 WE 0 ,, 8 . Pace Project Number fit Samples I Ds MUST BE UNIQUE OTHER OT DATE TIME TIME 0 5 0 z z z , TISSUE TS 16:5: =11 X X 5 Lab 1. D L-_ L:L 12 IS 4- ny _11�_ _21A 0 .2 I Li , I 'Z 31, SAMPLE CONDITION ACCEPTED BY I AFFILIATIO ■ Additional Comments; z 5E 0 SAMPLER NAME AND SIGNATURE PRINT Nam f SAMPLER: E E SEE REVERSE SIDE FOR INSTRUCTIONS SIGNAT��E of SAMPLER' jAi DATE Signed(VIM I DD YY) g 1 02 cc 0 . 1 w E r - �� ceAnalytical -UHA[N-oF-QUSTQUY l Analytical Request Document' The Chain -of -Custody is a LEGAL DOCUMENT. All relevant fields must be completed accurately, ;Page: of ■r - i 1 REGULATORY AGENCY • , . :..:: SITE LOCATION Pace Project Manager: • • • Pace Project • . ®�® Number Lab I.D WORMER mro3twil■■■■■ ■R®11111�J10■ NMI III11 ■■ ©■■■■■ ■ ��C���O��■■■■■ ■���►' T 'ff0111113111111111114H■■■■■■ ■ ■■e©�t::e■■■■■■■ ■:.��� � . �� ram■ �®��■■■■■ ■�■■■■■■■ ■ MEMO �, ■ ■ ■■■■■■ ■®®®t■t■■■ ®®®®®®■■■ ■■■ ■■ling Additional Comments: RELINQUISHED °BY'/ -AFFILIATION DATE TIME , ACCEPTED BY! AFFILIATION DATE I TIME • . • SAMPLER NAME AND SIGNATURE Ar,P AnghItirgI CHAIN -OF -CUSTODY / AnalyticalRequest Document The Chain -of -Custody is a LEGAL DOCUMENT. All relevant fields must be completed accurately. - -----------..------ Page: of Section A Section B Section C 46527- Required Client Information: Required Project Information:. Invoice Information:, Company Report To: -,` a% Attention: :. , REGULATORY Address Copy To: Company Name: ❑ NPDES --'r ❑ GROUNDWATER ❑ DRINKING WATER ❑ UST ❑ RCRA ❑ Other Address: OGA OIL DIN ❑MI ❑MN [INC Email To: Purchase Order No.: Pace Quote Reference: DOH ❑SC ❑ WI ❑OTHER Phone, ; .• -; Fax. Project Name: Pace Project Manager: 1:y-A Filtered (YIN) Requested Due Date/TAT: Project Number: Pace Profile #: Requested Valid Matrix Codes Section D Required Client information MATRIX CODE a Preservatives Analysis: = SAMPLE I D DRINKING WATER DW WATER Wr WASTE WATER WW ttou O Wi a0 a. z 20 ,) o PRODUCT v 1 0 LL Z o`c O USOI D SL x am COLLECTED a 9 U0 a 4. 4r One Character per box. (A-Z, 0-9 / : )' OIL OL WIPE WP AIR AR ¢0 y� COMPOSITE START COMPOSITE ENDIGRAB O ¢ O e� G z O O Z O � = vir m •�. • c Pace Project Number Samples IDs MUST BE UNIQUE OTHER OT DATE TIME DATE TIME m�`�: c C, z O a Mo m fifi , ode — TISSUE TS O x x x z z' i O. Lab 1-D. J ." - _ "' :; . v tiI I I.f r G � - e • 111101 sabi-lIM• BY • s SAMPLE CONDITION Additional Comments: Z Z SAMJ3 PAINT Narr • of L:ER::'' f f• • ''� L; c •m a .•;` E m E SiGIfATUR� of S MPLER: r' ' ' " DATE Signed (MM /.OD ! YY) v m m SEE REVERSE SIDE FOR INSTRUCTIONS ✓ ® 1241 Bellevue Street, Suite 9 I�AceAffllydcal Green Bay, WI W02 920-469-2436, Far. 920-469-8827 Analytical Report Number: 877399 Client: PACE ANALYTICAL SERVICES, INC. Lab Contact- Brian Basten Project Name: GLATFELTER CORP. Project Number: 92130169 Lab Sample Collection Number Feld ID Matrix Date 877416-001 DR-I-SED1A 927567313 SOIL 10/17/06 877416-002 DRA-SED1B927567321 SOIL 10/17/06 877416-003 DR-1SED2A 927567339 SOIL 10/17/06 877416-004 DR-1-SED28 927567347 SOIL 10/17/06 877416-005 DR-1-SED3A 927567354 SOIL 10/17/06 877416-006 DR-1SED3B 927567362 SOIL 10/17/06 877493-001 FB-3SED-1A 927673287 SOIL 10/18/0614:30 877493-002 FB-3SED-1 B 927573295 SOIL 10/18/0614:30 877493-003 1713-3SED-2A 927573303 SOIL. 10/18/0614:35 877493-D04 FB-3SED-26 927573311 SOIL 10/18/0614:35 877493-005 FB-3SED-3A 927SM337 SOIL 10/1810814:40 877493-006 F13-3SED-013 927673345 SOIL 10/1W0614:40 877493-007 FB-33ADUP 927573352 SOIL 10/18/06 877493-008 FB-32BDUP 927573360 SOIL 10/18/06 877493-009 FB-2SED-1A 927573196 SOIL 10/18/0612:35 877493-010 FB-2SED-16 927573212 SOIL 10/18/0512:35 877493-011 FB-2SED-2A 927573220 SOIL 1011810612:45 877493-012 FB-2SED 2B 927573246 SOIL 10/18/0612:45 877493-013 FB-2SED-3A 927573253 SOIL 1011810613:00 877493-014 FB-2-SED-3B 927573261 SOIL 10/18/0613:00 877493-015 FB-1SED-1A 927573113 SOIL 10/18/0610:45 877493-016 FB-1SED-1B927573121 SOIL 10/18/0610.45 877493-017 FB-1SED-2A 927573139 SOIL 10/1810610:65 877493-018 FB-1-SED-2B 927573154 SOIL 10/1810610:55 877493-019 FB-1-SED-3A 927573162 SOIL 10/18/0611:05 877493-020 FB-1SED-3B927573188 SOIL 10/1810611:05 1 certify that the data contained in this Final Report has been generated and reviewed in accordance with approved methods and Laboratory Standard Operating Procedure. Exceptions, if any, are discussed In the accompanying sample comments. Release of this final report is authorized by Laboratory management, as Is verified by the following signature. This report shall not be reproduced, except in full, without the written consent of Pace Analytical Services, Inc. The sample results relate only to the analytes of interest tested. AP pr a Signature Date Pace Analytical Analytical Report Number: 87739 Services, Inc. Client: PACE ANALYTICAL SERVICES, INC. Project Name: GLATFELTER CORP. Project Number: 92130169 Field ID : DR-I-SED1A 927567313 INORGANICS Test Result EQL Dilution Units Mercury 0.084 0.020 1 mg/Kg Percent Solids 49.4 — 1 % TOC as NPOC 95000 75000 1 mg/kg All soil results are reported on a dry weight basis unless otherwise noted. 9 1241 Bellevue Street Green Bay, WI 54302 920-469-2436 Matrix Type: SOIL Collection Date: 10/17/06 Report Date: 10/31/06 Lab Sample Number: 877416-001 Code AM Date Prep Method AM Method A 10/19/06 - SW846 7471A SW846 7471A 10/19/06 SM M254OG SM M254OG 10/30/06 SW846 M9060 . SW846 M9060 ... v Pace Analytical Analytical Report Number: 87739 Services, Inc. Client: PACE ANALYTICAL SERVICES, INC. Project Name : GLATFELTER CORP. Project Number : 92130169 Field ID: DR-I-SED1B 927567321 9 1241 Bellevue Street Green Bay, Wl 54302 920-469-2436 Matrix Type : SOIL Collection Date: 10/17/06 Report Date: 10/31/06 Lab Sample Number: 877416-002 INORGANICS Test Result EQL Dilution Units Code AM Date Prep Method An[ Method Mercury 0.12 0.026 1 mg/Kg A 10/19/06 SW846 7471A SW846 7471A Percent Solids 38.9 -- 1 % 10/19/06 SM M254OG SM M2540G TOC as NPOC 180000 83000 1 mg/kg 10/30/06 SW846 M9060 SW846 M9060 All soil results are reported on a dry weight basis unless otherwise noted. Pace Analytical Analytical Report Number: 877399 Services, Inc. Client: PACE ANALYTICAL SERVICES, INC. Project Name: GLATFELTER CORP. Project Number : 92130169 Field ID: DR-1-SED2A 927567339 1241 Bellevue Street Green Bay, WI 54302 920-469-2436 Matrix Type: SOIL Collection Date : 10/17/06 Report Date : 10/31/06 Lab Sample Number: 87741"03 INORGANICS Test Result EQL Dilution Units Code Anl Date Prep Method Anl Method Mercury 0.061 0.016 1 mg/Kg A 10/19/06 SW846 7471A SW846 7471A Percent Solids 62.7 — 1 % 10/19/06 SM M2540G SM M2540G TOC as NPOC 15000 5200 1 mg/kg 10/30/06 SW846 M9060 SW846 M9060 All soil results are reported on a dry weight basis unless otherwise noted. . Pace Analytical Analytical Report Number: 87739 Services, Inc. r Client: PACE ANALYTICAL SERVICES, INC. 1 Project Name : GLATFELTER CORP. Project Number: 92130169 Field ID : DR-I-SED2B 927567347 9 1241 Bellevue Street Green Bay, WI 54302 920-469-2436 Matrix Type : SOIL Collection Date: 10/17106 Report Date : 10/31/06 Lab Sample Number: 877416-004 INORGANICS Test Result EQL Dilution Units Code Anl Date Prep Method Anl Method Mercury 0.064 0.015 1 mg/Kg A 10/19/06 SW846 7471A SW846 7471A Percent Solids 66.8 — 1 % 10/19/06 SM M254OG SM M254OG TOC as NPOC 22000 11000 1 mg/kg 10/30/06 SW846 M9060 SW846 M9060 All soil results are reported on a dry weight basis unless otherwise noted. Pace Analytical Anal cal Re ort Number: 877399 1241 Bellevue Street yti p Green Bay, WI 54302 Services, Inc. 920-469-2436 Client: PACE ANALYTICAL SERVICES, INC. Matrix Type : SOIL Project Name: GLATFELTER Collection Date: 10/18/06 Project Number : 92130169 Report Date: 10/31/06 Fleld ID : FB-I-SED-ZA 927573139 Lab Sample Number : 877493-017 INORGANICS Test Result EQL Dilution Units Code AM Date Prep Method • Anl Method Mercury 0.034 0.025 1 mg/Kg 10/23/06 SW846 7471A SW846 7471A Percent Solids 39.4 — 1 % 10/21/06 SM W54OG SM M264OG TOG as NPOC 20000 6600 1 mglkg 10/27/06 SW846 M9060 SW846 M9060 All soil results are reported on a dry weight basis unless otherwise noted. Pace Analytical Analytical Report Number: 87739 Services, Inc. Client: PACE ANALYTICAL SERVICES, INC. Project Name : GLATFELTER Project Number: 92130169 Field ID: FB-I-SED-2B 927573154 9 1241 Bellevue Street Green Bay, WI 54302 .920-469-2436 Matrix Type : SOIL Collection Date : 10/18/06 ReportDate : 10/31/06 Lab Sample Number; 877493-018 INORGANICS Test Result EQL Dilution Units Code Anl Date Prep Method Anl Method Mercury 0.049 0.029 1 mg/Kg 10/23/06 SW8467471A SW8467471A Percent Solids 35.0 — 1 % 10/21/06 SM M2540G SM M254OG TOC as NPOC 49000 17000 1 mg/kg 10/27/06 SW846 M9060 SW846 M9060 All soil results are reported on a dry weight basis unless otherwise noted. Pace Analytical !Analytical Report Number: 87739 Services, Inc. Client: PACE ANALYTICAL SERVICES, INC. Project Name: GLATFELTER Project Number: 92130169 Field ID: FB-I-SED-3A 927673162 INORGANICS Test Result EQL Dilution Units Mercury 0.19 0.020 1 mg/Kg Percent Solids 50.3 — 1 % TOC as NPOC 18000 13000 1 mg/kg AD soil results are reported on a dry weight basis unless otherwise noted. 1241 Bellevue Street Green Bay, WI 54302 920-469-2436 Matrix Type : SOIL Collection Date: 10/18/06 Report Date: 10/31/06 Lab Sample Number: 877493-019 Code Anl Date Prep Method AN Method 10/23/06 SW8467471A SW8467471A 10f21/06 SM M254OG SM M254OG 10/27/06 SW846 M9060 SW846 M9060 Pace Analytical 1241 Bellevue street Y Analytical Report Number: 877399 Green Bay, WI64302 Services, Inc. 920-469-2436 Client : PACE ANALYTICAL SERVICES, INC. Matrix Type : SOIL Project Name : GLATFELTER Collection Date: 10/18/06 Project Number : 92130169 ReportDate : 10/31/06 Feld ID: FB-ISED-3B 927573188 Lab Sample Number: 877493-020 INORGANICS Test Result ECIL Dilution Units Code Anl Date Prep Method Anl Method Mercury 0.038 0.017 1 mg/Kg Percent Solids 59.3 -- 1 % TOC as NPOC 15000 5400 1 mg/kg All soil results are reported on a dry weight basis unless otherwise noted. 10/23/06 SW8467471A SW8467471A 10/21/06 SM M264OG SM M254OG 10/27/06 SW846 M9060 SW846 M9060 Pace Analytical 1241 Bellevue Street Y Analytical Report Number: 877399 Green Bay,. W154302 Services, Inc. 920-469-2436 Client: PACE ANALYTICAL SERVICES, INC. Matrix Type: SOIL Project Name : GLATFELTER Collection Date: 10/18/06 Project Number: 92130169 Report Date : 10/31/06 Field ID : FB-2-SED-1A 927573196 Lab Sample Number: 877493-009 INORGANICS Test Result EQL Dilution Units Code AnI Date Prep Method Ani Method Mercury 0.015 0.013 1 mg/Kg 10/23/06 SW846 7471A SW846 7471A Percent Solids 74.8 — 1 % 10/21/06 SM M2540G SM M254OG TOC as NPOC 1800 1100 1 mg/kg 10126/06 SW846 M9060 SW846 M9060 All soil results are reported on a dry weight basis unless otherwise noted. Pace Analytical 1241 Bellevue Street yti Analytical Report Number: 877399 Green Bay, WI 54302 Services, Inc. 920-A69-2436 Client: PACE ANALYTICAL SERVICES, INC_ Matrix Type : SOIL Project Name : GLATFELTER Collection Date: 10/18106 Project Number: 92130169 ReportDate : 10/31/06 Field ID : FB-2SED-1 B 927573212 Lab Sample Number: 877493-010 INORGANICS Test Result EQL Dilution Units Code Ani Date Prep Method Ant Method Mercury. 0.022 0.015 1 mg/Kg 10/23/06 SW846 7471A SW846 7471A Percent Solids 68.5 — 1 % 10/21/06 SM M2540G SM M254OG TOC as NPOC 2300 790 1 mg/kg 10/26/06 SWB46 M9060 SW846 M9060 All soil results are reported on a dry weight basis unless otherwise noted. Pace Analytical, Services, Inc. Analytical Report Number: 677399 GreenBlay WI54302 920469-2436 Client: PACE ANALYTICAL SERVICES, INC. Matrix Type: SOIL Project Name : GLATFELTER Collection Date: 10/18/06 Project Number : 92130169 Report Date : 10/31/05 Field ID: FB-2-SED-2A 927573220 Lab Sample Number: 877493-011 INORGANICS Test Result EQL Dilution Units Code AM Date Prep Method AM Method Mercury < 0.013 0.013 1 mg[Kg 10/23/06 SW846 7471A SW846 7471A Percent Solids 75.2 — 1 % 1021106 SM M254OG SM M2540G TOC as NPOC 530 490 1 mg/kg 1026106 SW846 M9060 SW846 M9060 All soil results are reported on a dry weight basis unless otherwise noted. Pace Analytical Analytical Report (dumber: 87739 Services, Inc. Client: PACE ANALYTICAL SERVICES, INC_ Project Name: GLATFELTER Project Number: 92130169 - Field ID : FB-2-SED-2B 927573246 9 1241 Bellevue Street Green Bay, W154302 920-469-2436 Matrix Type : SOIL Collection Date : 10/18/06 ReportDate : 10/31/06 Lab Sample Number: 877493-012 INORGANICS Test Result EQL Dilution Units Code Anl Date Prep Method Anl Method Mercury < 0.013 0.013 1 mg/Kg 10/23/06 SW8467471A SW8467471A Percent Solids 76.4 -- 1 % 10/21/06 SM M254OG SM M254OG TOC as NPOC 540 500 1 mg/kg 10/26/06 SW846 M9060 SW846 M9060 All soil results are reported on a dry weight basis unless otherwise noted. Pace Analytical Analytical Report Number: 87739 Services, Inc. Client: PACE ANALYTICAL SERVICES, INC. Project Name: GLATFELTER Project Number: 92130169 Field ID: FB-2-SED-3A 927573253 9 1241 Bellevue Street Green Bay, W154302 920-469-2436 Matrix Type : SOIL Collection Date : 10/18/06 Report Date: 10131/06 Lab Sample Number: 877493-013 INORGANICS Test Result EQL Dilution Units Code AN Date Prep Method -AM Method Mercury 0.034 0.015 1 mg/Kg 10/23/06 SWB467471A SWM7471A Percent Solids 67.4 — 1 % 1021/06 SM M254OG SM M254OG TOC as NPOC 18000 11000 1 mg/kg 1026/06 SW846 M9060 SW846 M9060 M soil results are reported on a dry weight basis unless otherwise noted. Pace.Analytical Anal tical Re Report Number: 877399 1241 Bellevue Street y p Green Bay, WI 54302 Services, Inc. 920-169-2436 Client: PACE ANALYTICAL SERVICES, INC. Matrix Type : SOIL Project Name: GLATFELTER Collection Date: 10/18/06 Project Number : 92130169 . Report Data: 10/31/06 Field ID., FB-2-SED-313927573261 Lab Sample Number: 877493-014 INORGANICS Test Result EQL Dilution Units Code AM Date Prep Method AM Method Mercury < 0.014 0.014 1 mg/Kg 10/23/06 SW8467471A SW8467471A Percent Solids 73.3 — 1 % 10/21/06 SM M254OG SM M254OG TOC as NPOC 2200 1000 1 mg/kg 10/26/06 SW846 M9060 SW846 M9060 At soil results are reported on a dry weight basis unless otherwise noted. Analytical Report Number: 771241 Bellevue Street Pace Analytical RNb8399 P Green Bay, WI 54302 Services, Inc. 920-469-2436 Client: PACE ANALYTICAL SERVICES, INC. Matrix Type : SOIL Project Name : GLATFELTER Collection Date: 10/18/06 Project Number : 92130169 Report Date: 10/31/06 Field ID: F&3-SED-1A 927573287 Lab Sample Number: 877493-001 INORGANICS Test Result EQL Dilution - Units Code Anl Date Prep Method Anl Method Mercury 0.023 0.015 1 mg/Kg 10/23/06 SW846 7471A SW846 7471A Percent Solids 65.4 — 1 % 10/21/06 SM M254OG SM M254OG TOO as NPOC 22000 7800 1 mg/kg 10/26/06 SW846 M9060 SW846 M9060 All soil results are reported on a dry weight basis unless otherwise noted. Pace Analytical Analytical Report Number: 877399 Green Bellevue W Street54302 Services, Inc. 920-469-2436 Client: PACE ANALYTICAL SERVICES, INC. Matrix Type : SOIL Project Name: GI.ATFELTER Collection Date : 10/18/06 Project Number : 92130169 Report Date: 10/31/06 Field ID : FB-3-SED-1B 927673295 Lab Sample Number: 877493-002 INORGANICS Test Result EQL Dilution Units Code Anl Date Prep Method Anl Method Mercury 0.032 0.017 1 mg/Kg 10/23/06 SW846 7471A SW846 7471A Percent Solids 58.9 — 1 % 10/21/06 SM M254OG SM M254OG TOC as NPOC 22000 11000 1 mg/kg 10/26/06 SW846 M9060 SW846 M9060 AU soil results are reported on a dry weight basis unless otherwise noted. Pace Analytical 1241 Bellevue Street yt Analytical Report Number: 877399 Green Bay, WI 54302 Services, Inc. 920-469-2436 Client : PACE ANALYTICAL SERVICES, INC. Matrix Type: SOIL Project Name: GLATFELTER Collection Date : 10/16/06 Project Number; M30169 Report Date : 10/31/06 Field ID : FB-3-SED-2A 927573303 Lab Sample Number: 877493-003 INORGANICS Test Result EQL Dilution Units Code Ant Date Prep Method An[ Method Mercury < 0.013 0.013 1 mg/Kg Percent Solids 74.3 — 1 % TOG as NPOC 3300 1400 1 mglkg All soil results are reported on a dry weight basis unless otherwise noted. 10/23106 SW846 7471A SW846 7471A 10/21/06 SM M254OG SM M254OG N 10/26/06 SW846 M9060 SW846 M9060 Pace Analytical Services, Inc. Analytical Report Number: 877399 1241ellevue Street Green Bay, WI 54302 920.469-2436 Client: PACE ANALYTICAL SERVICES, INC. Matrix Type : SOIL Project Name : GLATFELTER Collection Date:. 10/18/06 Project Number: 92130169 Report Date : 10/31/06 Field ID : FB-3-SED-2B 927573311 Lab Sample Number: 877493-004 INORGANICS Test Result EQL Dilution Units Code Anl Date Prep Method AN Method Mercury < 0.013 0.013 1 mg/Kg 10/23/06 SW8467471A SW8467471A Percent Solids 74.5 — 1 % 10/21/06 SM M254OG SM M254OG TOC as NPOC 1700 1700 1 mgikg 10/26/06 SW846 M9060 SW846 M9060 All soil results are reported on a dry weight basis unless otherwise noted. P-1 L Pace Analytical 1241 Bellevue Street Y Analytical Report Number: 877399 Green Bay, WI 54302 Services, Inc. 920-469-2436 Client: PACE ANALYTICAL SERVICES, INC. Matrix Type: SOIL Project Name: GLATFELTER Collection Date: 10/18/05 Project Number: 92130169 Report Date : 10/31106 Field ID: FB-3-SED-3A 927573337 Lab Sample Number: 877493-005 INORGANICS Test Result EQL Dilution Units Code Anl Date Prep Method Ant Method Mercury 0.022 0.016 1 mg/Kg 10/23/06 SW8467471A SW8467471A Percent Solids 62.3 -- 1 % 10/21/06 SM M254OG SM M2540G TOC as NPOC 6600 5800 1 mg/kg N 10/2M6 SWB46 M9060 SW846 M9060 Al soil results are reported on a dry weight basis unless otherwise noted. Pace Analytical. 1241 Bellevue Street Y Analytical Report Number: 877399 WI 54302 Services, Inc. Green Bay, 920-469-2436 -� Client : PACE ANALYTICAL SERVICES, INC. Matrix Type : SOIL Project Name: GLATFELTER Collection Date: 10/18/06 Project Number: 92130169 ReportDate : 10/31M6 Field ID : 1713-3-SED-313927573345 Lab Sample Number: 877493-006 INORGANICS Test Result EQL Dilution Units Code Ani Date Prep Method Anl Method Mercury 0.024 0.016 1 mg/Kg 10/23/06 SW8467471A SW8467471A Percent Solids 62.2 — 1 % 10/21/06 SM M254OG SM M254OG TOC as NPOC 13000 10000 1 mg/kg 10/26/06 SW846 M9060 SW846 M9060 I AP soil results are reported on a dry weight basis unless otherwise noted. Pace Analytical Anal tical Re Report Number: 877399 1241 Bellevue Street Y p vw 54302 Services, Inc. Green Bay, . 920-469-2436 Client: PACE ANALYTICAL SERVICES, INC. Matrix Type: SOIL Project Name: GLATFELTER Collection Date: 10/18/06 Project Number: 92130169 Report pate : 10/31/06 Field 1D : FB-33ADUP 927573352 Lab Sample Number: 877493-007 INORGANICS Test Result EQL Dilution Units Code AM Date Prep Method Anl Method Mercury 0.022 0.015 1 mg/Kg 10/23/06 SW846 7471A SWB46 7471A Percent Solids 67.3 -- 1 % 10/21/06 SM M2540G SM M254OG TOC as NPOC 8900 5300 1 mg/kg 10/26/06 SW846 M9060 SW846 M9060 a AO soil results are reported on a dry weight basis unless otherwise noted. Pace Analytical Anal cal Re Report Number: 877399 1241 Bellevue street Services, Inc. p 20.469-24 6Green Bay, 154302 Client: PACE ANALYTICAL SERVICES, INC. Matrix Type : SOIL Project Name : GLATFELTER Collection Date: 10/18/06 Project Number: 92130169 Report Date: 10/31/06 Fleld ID : FB-32BDUP 927573360 Lab Sample Number: 877493-008 INORGANICS Test Result EQL Dilution Units Code Anl Date Prep Method Anl Method Mercury 0.037 0.019 1 mg/Kg 10/23/06 SW846 7471A SW846 7471A Percent Solids 53.7 1 % 10/21/06 SM M254OG SM M254OG TOC as NPOC 25000 17000 1 mg/kg 10/26/06 SW846 M9060 SW846 M9060 All soil results are reported on a dry weight basis unless otherwise noted. 1 Qualifier Codes Flag Applies To Explanation A Inorganic Analyte is detected in the method blank. Method blank criteria Is evaluated to the laboratory method detection limit Additionally, method blank acceptance may be based on project specific criteria or determined from analyte concentrations in the sample and are evaluated on a sample by sample basis. B Inorganic The analyte has been detected between the method detection limit and the reporting Omit. .8 Organic Analyte is present in the method blank. Method blank criteria is evaluated to the laboratory method detection limit. Additionally, method blank acceptance may be based on project specific criteria or determined from analyte concentrations in the sample and are evaluated on a sample by sample basis. C All Elevated detection limit. D Ail Analyte value from diluted analysis or surrogate result not applicable due to sample dilution. E Inorganic Estimated concentration due to matrix Interferences. During the metals analysis the serial dilution failed to meet the established control limits of 0-10%. The sample concentration is greater than 50 times the iDL for analysis done on the ICP or 100 tunes the IDL for analysis done on the ICP-MS. The result was flagged with the E qualifier to indicate that a physical interference was observed. E Organic Analyte concentration exceeds calibration range. F Inorganic Due to potential interferences for this analysis by Inductively Coupled Plasma techniques (SW-846 Method 6010), this analyte has r been confirmed by and reported from an alternate method. F Organic Surrogate results outside control criteria. G All The result is estimated because the concentration is less than the lowest calibration standard concentration utilized in the initial calibration. The method detection limit is less than the reporting limit specified for this project. H Aft Preservation, extraction or analysis performed past holding time. HF Inorganic This test Is considered a field parameter, and the recommended holding time is 15 minutes from collection. The analysis was " performed in the laboratory beyond the recommended holding time. J Ali Concentration detected equal to or greater than the method detection limit but less than the reporting limit. K Inorganic Sample received unpreserved. Sample was either preserved at the time of receipt or at the time of sample preparation. K Organic Detection Omit may be elevated due to the presence of an unrequested analyte. L All Elevated detection limit due to low sample volume. M Organic Sample pH was greater than 2 N All Spiked sample recovery not within control limits. O Organic Sample received overweight P Organic The relative percent difference between the two columns for detected concentrations was greater than 40%. Q All The analyte has been detected between the limit of detection (LOD) and limit of quantitation (LOQ). The results are quaffed due to the uncertainty of analyte concentrations within this range. S Organic The relative percent difference between quantitation and confirmation columns exceeds internal qualitycontrol criteria_ Because the result is unconfirmed, it has been reported as a non -detect with an elevated detection limit U All The analyte was not detected at or above the reporting limit. V All Sample received with headspace. W All A second aliquot of sample was analyzed from a container with headspaos. . X All See Sample Narrative. Z Organics This compound was separated in the check standard but it did not meet the resolution criteria asset forth in SW846. & All Laboratory Control Spike recovery not within control limits. ° - All Precision not within control limits. + Inorganic The sample result is greater than four times the spike level: therefore, the percent recovery is not evaluated. < All The analyte was not detected at or above the reporting limit 1 Inorganic Dissolved analyte or filtered analyte greater than total analyte; analyses passed QC based on precision criteria. 2 Inorganic Dissolved analyte or filtered analyte greater than total analyte, analyses failed QC based on precision criteria. 3 inorganic BOD result is estimated due to the BOD blank exceeding the allowable oxygen depletion. 4 Inorganic BOD duplicate precision not within control limits. Due to the 48 hour holding time for this test, it is not practical to reanalyze and try to correct the deficiency. 5 Inorganic BOD result is estimated due to insufficient oxygen depletion. Due to the 48 hour holding time for this test, it is not practical to reanalyze and try to correct the deficiency. 6 Inorganic BOD laboratory control sample not within control limits. Due to the 48 hour holding time for this test, it is not practical to reanalyze and try to correct the deficiency. 7 Inorganic BOD result is estimated due to complete oxygen depletion. Due to the 48 hour holding time for this test, it is not practical to reanalyze and try to correct the deficiency. Pace Analytical Services, Inca Lab Plumber TestGrouplD Field ID Comment 1241 Bellevue Street Green Bay, WI 54302 920A69-2436 Fax:920-469-8827 877416- M-HG-S All Samples A - Analyte is detected in the method blank at a concentration of-0.0017 mg/Kg. 877493-020 m m Y d M 877493-019 m m Y y ; 877493-018 m m x m 877493-017 m m Y m 877493-016 m m Y c N 877493-015 m m Y 877493-014 m m x 877493-013 m co Y 877493-012 m m Y 877493-011 m m Y 877493-010 CO m Y 877493-009 m m Y 0 877493.008 m m x 877493-007 00 m Y C m877493-006 m m x J 877493-005 m m Y 877493-004 m m Y �+ 877493-003 m m Y E 877493-002 m m Y- E 877493-001 m m Y (/) O 877416-006 m m Y N 877416-005 m m NC.N ?% 877416-004 m m Y C 877416-003 10 m Y Q 877416-002 m m Y 877416-001to m m Y E ca QN z U) a z _v v V U S eE. d y w w 0 2 a f- rn r Co c cn n CD 010 Q No O2 m a� � o m o .o >ce J mc CD = m E L 2 v U m Y BR04KSRAND TRACE ty nMANALYSLS&PRODUQ5 November 15, 2006 Pace Analytical Attn.: Lori Patton 2225 Riverside Drive Ashville, NC 28804 RE: Brooks Rand Project: PAC004; Tracking #: 06BR1664 & 06BR1685 Project Number: 92130167; Purchase Order. AS5618 Dear Ms. Patton, Three fish samples, collected on October 17, were received by Brooks Rand LLC (BRL) on October 18, 2006 in a cooler with ice at a temperature of 2.4 °C Upon .receipt these samples were assigned the BRL internal tracking number 06BR1664. Six more fish samples, also collected on October 18, 2006, were received in two coolers with ice at temperatures of -02 °C and 0.6 -C. These samples were assigned the internal tracking number 06BR1685. The requested analyses listed on the chain of custody form were mercury (Hg) and methyl mercury (kv%Mg) for single fish samples and composite samples. The samples were received, stored, prepared and analyzed according to BRL standard operating procedures (SOPs) and EPA Method 1631E. Once thawed, the samples were homogenized using precleaned commercial grade homogenization equipment. During homogenization of the - biota samples, several homogenization blanks were collected and batched for Hg analysis. All samples were prepared and analyzed in accordance with EPA Method 1631 Appendix (BRL BR-0006) for Hg and a modification of EPA Method 1630 {BRL SOP BR-0011) for mmHg. All biota sample results are blank corrected, as outlined in the calculations section of the methods. Homogenization blank results have not been blank corrected. Please refer to the Quality Assurance Summary for QA details. Sample results have been evaluated using detection limits that were adjusted to account for sample aliquot size; please refer to the .Quality Assurance Summary for a list of the sample specific method detection limits (MDLs) and practical quantitation limits (PQLs). Results below the MDL have been qualified "U" for non -detect and were reported at the MDL. All QA criteria were met and no additional qualification of the data was required. 3958 6th Avenue NW • SeatUe, WA 98107 • Phone (206) 632-6206 • Fax (208) 632-6017 • www.brooksrand.com • bd@brooksrand.com Lf you have any questions concerning this report, please feel free to contact us. Sincerely, 2 Project Coordinator .amy@bmksrand.co.m Elizabeth Madonick Project Manager elizabeth@brooksmnd.com Reported by Summary OfResultr• for Brooks Rand LLC Pace Analydeal Contact: Amanda Fawley Contact: Lorri Patton 39SS 61hAvaareNW 2225Riui WeDnIPe Stolle, WA M107 Ashy k NC 28804 Tek 206-632-6206 Far 106 2-6017 Teo- 82&2S4-7776 Lob Project # PA0004 Quote PAC004d Lab Tracking # 06BRI664 Sample/Sam plira/Xeceivin,� I�afo PaceAnalytical BRL Sample Identification Sampling Date SampleNumber DR-1-F-COMPA-1 10117106 06BRU64 01 DR-1-F-COMPA-2 10117M OSSR16M 02 DR-1-F-COMPB 1W17l06 OOBR1664 • 03 Ha" BW*#1 1111" 00SR1064 - 04 totvg B"#n 111U06 OBBRIM - 06 FUM Mrik #2 11111W OBBRI684 - 08 Wednesday, November 15, 2006 �'t'_ i • 1 '`a ProlertMonapw Receiving Date 1 Ot1=006 10tM2005 1011MM 1011812008 10/ MOO 10118MM Reported by Summary of Results for_ Brooks stand LLC Pace Analytical Contact: Amanda Fawley Contact: Lorri Patton 3958 61hAnn ueNW 2225RiverW&Drbe SeattlS WA 98107 Ashvufe " NC 28804 TeL• 206432-66206 Fax: 206WZ.60.17 Tel: 828 354-7176 Lab Project# PAC004 Quote PAC004d Lab Tracldng# 06BIU664 Hg Sample Total or Proparation Identification BRL Number Dlssofved date Analys[a date Batch # Result Units Qualifier (Q) DR-1-F-COMPA-1 O58111e64 - 01 T 11/912008 11/1020M 06•1004 18.300 rQ19 DR 1-F-COMPA-2 00BR1e54 - 02 T 111912ow 11/102008 W1004 300.000 rip DR-1-F-COMPS MOR1664 - 03 T 11/912006 11/102008 06.1004 187.000 n8/9 Homog Blank81 068111664 - 04 T' 11/6/2008 11/1012006 08-1004 0.040 rv9 U Homop Blank 03 06BR1664 - 05 T 11/9/P008 11/10/1006 08-1004 0.040 11019 U Fillet Blank f2 08BR1864 - 06 T 111 2" 11/102006 06-1004 0.040 • rQ19 U Tuesday, November 14, 2006 /r r�l"ManYier 3 a Reported by Summary ofRaulls for Brooks Rand d LC Pace Analytical Contact: Amanda Fawley Contact: Lord Patton S 3938 6t AvenueNW ???SRiverstde Drive t SeaAM; WA 98107 Ashvtue NC 28804 Tet: 206-b32-6206 Faz 206-632-6017 Tek 828-2N-7176. 4 Lab Project # PA0004 Quote PAC004d Lab TracWng # 06BR1664 Hg(Monomethyl) Sample Total or Preparation Identificatlon BRL Number Dissolved data Analysis date Batch # Result Units Quailfisr (Q) DR-1-F COMPA 1 068R1004 - 01 T 1M2006 1111=006 W1005 9.5w na/g DR-1-F-COMPA-2 06BR7664 - 02 T 11/02006 11/10/2006 0&1005 259.000 nglg DR-1-F-COMPB 06BRi664 - 03 T 111D2006 11/1=006 0&1005 164.000 ng/g / R y� N 1 f ' a 9 7 S L _ I T F j: - F 1 - 3 Y Y Tuesday, November 14, 2006 + Fraud Maua er ' 1 j Reported by Summary ofResuft for Brooks Rand LLC Pace Analytical Contact: Amanda Fawley Contact.. Lorrf Patton 39S86/hAvei=NW 2225RPoas&eDrbe Sevn% WA 98107 Ashvak NC 28804 r9&20&&2.62W Far206-6324017 A 828-254-7176 _ lAbProject# PAC004 Quote PAC004d Lab 9racking # 06BR1685 i g(Mononiethyl) Sample Total or Preparation Identification BRL Number Dissolved data Anatysis date Batch 9 Result Units Qualifier(a) FB-I-FCOMPA OBBRIUS - 01 T 1/A2008 11/102008 00.1005 84.000 ng/g FB-I-FOOMPB 06BRIW5 - 02 T 11 2006 111102005 W1006 111.000 nglg FB-2-FOOMPA OW1685 - 03 T 1119/2006 111102008 MI MS 1.85D.000 ng/g FB-z-FCOMPa OBBR1086 - 04 T 1119/2000 11110120M 06-1005 339.000 WO FB•3T-COMPA 08BR1B86- 05 T 11/0/2005 11/102000 MIW5 204.000 rwo M-3-FCOMPB 06BR1885 - 08 - T 11/0/2000 '11m02006 05.1005 135.000 rwa 7}resday,November 14,2006 E.1L�l��ff&� &- asaP�r Reporled by Summary of Rewk for Brooks Rand LLC paceAn, dyfka Contact. Amanda Fawley Contact: Lorri Patton 39S8 Oh Avenue NW 2225Riverd* Drive Seani4 WA 98107 AshvlRe NC 28804 Teo 206.632 6206 F=206-632-6017 Tek 828-2S4-7176 Lab Project 9 PAC004 Quote PAC004d LabTracking# 06BR1685 Hg Sample Total or Preparation Identification BRL Number Dlssotved date Analysis date Batch ii Result Units Qualifier (Q) FB-I-FCOMPA 068111685 - 01 T 11MM06 111102006 W1004 123.000 n919 FB-1-FCOMPB 0613111685 - 02 T 1119r2008 1111o2008 05-1004 354.000 rwg FB-2-FCOMPA 068RI685 - 03 T 11/9/2000 1111MM - 08-1004 1.970.000 nglg FB-2-FCOMPB DOBR1e86 - 04 T 111=006 111=006 00-1004 M.000 0919 F6-3-FCOMPA 06BR1685 - 05 T 11/O&M 1U10r200s 06-1004 265.000 Rog FB-3-FCOMPB DOBR16D5 - 06 T 11AV2006 11110200s 06-1004 228.000 n9/9 Diaectbn Blank 81 OBBRIO85 - 07 T 11MMOO8 11/102005 08-1004 0.040 wo U Hom,aBlw*#1 0513111685,- 08 T 1118/2008 11/10/2008 W004 0.040 O9r9 U HOM09 Blank92 058111685 - 09 T 11/9/2008 , 11/1011006 OM004 0.040 ngfg U Dtsecilm Blank 02 OBBR1s85 - 10 T 11102008 17MOM008 08.1004 0.040 ng19 U TuesdV, November I4, 2006 P.o)eclXanag i Reported by. . Summary ofResults for Brooks Rand LLC Pace Analytical Contact: Amanda Fawley Contact: Lord Patton 3958 6th Asenue NW 2225 RfvertideDrtve Seattle, WA 98197 Aslndlle NC 28804 Tel: 206-632-6206 Far 206-632.6917 Tek 828-254.7176 Lab Project # PAC004 Quote PAC004d. Lab Tracking # 06BR1685 SampIeJSampdinklReceivink Info Pace Anal &-d BRL Sample Identification Sampling Date Sample Number Receiving Date FB-I-FCOWA 10/18106 OBBR16M - 01 .10119=06 FB-I-FCOMPB 10118106 08BR168B .02 1OM912006 FS-2-FCOMPA 10/18" 08BR1885 - 09 1XIM006 FS-2-FCOMPB 16/1&O6 06BRISSS - 04 1011=000 F94-FCOMPA 10/18106 DORMS - 06 IOMM006 FB-S-FCOMPS 1011=6 06BRIS86 - 06 101t02006 Dieectlon Blank#1 1112MG 00BR1886 - 07 1O/1912000 Hortwp Blanc #1 1112106 08BR1OSS - 00 10/ MOW HwnogBlank #2 flaw 06BR16B5 - 09 M912005 Medan Blw*'#2 112MO WaR1888 - 10 10t192006 Tuesday, November 14, 2006 i QUALITY ASSURANCE SUNDURY 40. .. 39586t &VauneNW . 6 ) RO � 'RAND Seattle, ww 9810706 TRACE LIMTA15 ANALYSIS & FROM CIS Voice,: Fax:206-632-6017-6017 Batch #: 06-1004 Mdliod #: BR-0002 Analyle. Hg HatrIc Biota BIAS Crik lon: Recovery - 0-I15% Independent Calibration Verilicatiott Measured, SIVE Value Recovery QGSID 1 ng/L 4G lcV' 26.01 I5.77 1 999'. It Preparation of the CRM MST 1641d. 11W ._, CH19doa: Reaovary - 77-I2396 Continuing Calibration Verification C t2CS10 Cooed Value RVE I Measured value RA Recrovery % CCVI 5.00 4.91 98% CCV2 5.00 5.12 102% CCV3 S.OD 432 869�. BIAS Criterlan: Aw"ery - 75-12SYo Certified Reference PMaterls! (CRM CerllJTed d9rasurut Value Value Recovery ' CRMID . Wg aglg S6 DORM-20 4640 4276 92% DORM 2• 4640 4180 1 90% 'liogltsD mastic BIAS '01ter fa• Recovery - 70-130%. RPD <30Y5 Matrix SPIket/ManixSpike Duplicates S/MSD) Afanix &Ike 41keDupffcale Saurlrlt Measured Measured MSD value, Spiked Valet Value ilt iked Value Value Retcovery DapGcatz SmapleLD ag/g.(tval ng/g (wet) ng/g (W1 2eeog/g NO not (W" 1 % 1 RPD 06BR1685-M 253.5 4103 630.9 407.6 651.5 99% 3% PRBCISION Criwiorr. RPD <30%if<S:PQL Method Da to Analysis (hm Sample Duplicate Average Value I value Value I DupUcaw S IeJD )1g/g ()MV ag/g Afto ng/g (wed RPD 06BR1685-M 253.5 262.2 257.9 3% Method Blanks (MB) Crfterls Avg. <2; MU, Std Dev <213 MDL or feresufts> lac hIR&y MB MBI AW2 JW A04 Average SYDev nF/g nii/g n919 trg/g I )T/g I ng/g 0.02 0.05 0.02 0.02• 0.03 0.01 Sample S fie Rc rtin Limits Sawle ID NDL W9 PQL xg/g 06BR1559-59 8.4 21.0 06BRI664-01 0.7 1 1.9 0613RI664-02 7.1 17.8 06MU664-03 8A 21.0 06BRI68$-01 8.8 22.0 06BRI685-02 82 2D.5 06BR1685-03 8.0 199 06DR1685-04 7.9 19.6 0613R16t15 05 7.4 I" 06BP,1685-061 7.4 1 19.4 IU13/2006 Method Detection Limits MDL PQ,L IV/g I ag/8 0.04 1 0.10 Page I of I ..._..... ..... ....................... __._.......... _.__...__ QUALITY ASSURANCE SUMMARY i IK)7K��! �1I�aI11��' 3958 6th Avenue NW 1 " ttle. WA 99107 1Jl i*�J-O V M D Voice; 206-632-6206 TRACEMECALS ANALYSISUPODUCI'S Fax: 206-632-6017 Batch #: 0&1005 Method #: BR-0011 Analyte: MMHg MaWx: Biota DIAS Criteria: Recovery - 80-120% lade endent Calibration VeAlleation l Cel'Ird Measured value Value gam nglb ng/L Recovery % ICV+ 2.8S 2.71 1 95% - s ac o-v stanaam is prgxwca uom m aaquot ofthe CRM DORM-2. BIAS Crflerix Reaavery - 67-133% Conlin Cahbrlttioa Yedfication QCSm CMI, jted Value NO& bfeaun*d Value ng/L Rem % CCVI km 0258 103% CCV2 0250 0253 102% CCV3 0.250 0.256 102% CCV4 0250 0249 1 99% BIAS Criteria: Recovery - 65-135% Certified Refertace Material CerVed Measured Yaiue Value Recovery CRMID ng/g AW9 % DORM 2** 4470 4243 95% DORM-20* 447D 4349 97% •.1Jogrsh M..Sd BUS. Criteria Recovery - 63-135K RPD < 3S% Moult S Pikes/Matrnt Spike Duplicates D M"* Spike AlatrLcS Dn lftata SampteZD S-Ple Value ng/g (wed Spiked Value nglg (wrap Mesvtred Varve nglg ft4 3tS Recovery X Spiked Vdue n3lg (40 Afeasnred VP&e Art 6we0 MSD Recovery % Duplicate RPD 06BR1559-54' 189 1942 203.1 95% 194.4 190.1 88% No MBR1644-03 1541 32V 380.E 691/o 352A 4063 M 7% 06BRI695-02 1 111.1 1 395A 455.1 89% 376.3 470.1 956% 3% PRECISION Crflerfa: RPD<35%orresuht+1-2rPQL j'<5xPQL Method Da kate Analysis Sa WkLD Sample Yoke &Wg (-0 Duplicate Value npk (weo Average Value Aglg (wet) RPD 06BR1559-S4 18.9 16.6 17.9 13°% 06BR1644-03 154.1 136.5 I453 12%6 06BR168S-02 111.1 146.3 129.7 27% Method Blanks (MS) C6fterin: Avx <2r MDL, StdDev <213 MDL AM] nglg MB2 !g AW nglg A1Mf. ngIZ Average neg fDrP 48* -02 1 -0.2 1 -0.3 1 41 1 -02 1 0.0 Sam le S ecit-ic Detection Limits Sample ID AIDL NO PQL nglg 06BRI559.46 1.0 3.I 068RI559-53 1.0 3.I 06BR15S9-58 1.0 3.1 06BR1685-03 9.6 28.8 111132006 Method Detection Limits AIDL nglg I PQL ng/g 1.0 3.0 1 Q try Oar 'i tt (S�OG .ojrc�Managa Page I of I sam;,WX e '98107 Fwc-2M 064M.7 �1`AV NALIM&PIMM --wwWbmQksmrdcdjn;- -Srriailk aic1coip Sample Receiving Log Tracking # 06BRI664 Due Date. 11115=6 Receiving Date- I Oil BrAW Customer Paci Analytical Receiving Time: 8,36 AM Contact: Lord Patton Prqed Ref. * PAC004 Logged -In by. Carolyn Rosevelt Login Date: 1011 W= BRL Project Manager. Amanda Fawley Log -in Time: 9:56 AM Alrbill present? Yes CIA Level Standard Alrbill # 858558094879 Sample Condition Intact Courier. FedEx Shipping container Intad? Yes Custody seal present? No container typo Cooler Custody seal.InWW No Shipping container twp-- 2.4'C COG Present? Yes ShShipping ipping container coolant foe COCISample tog agree? Yes Sample Turnaround Tim: COG Number 92130167 Contrad Turnaround Time: 28 days Subcontract or PO Number. ASS618 Comments: ..................................................................................................................................................................... Lob ID: 01 MatrixiSub-Matrix: Blota, Fish Sample Tag # DR-1-F-COMPA-1 Preservation: None Collection Datetrtmw. 10117/06.12:00,DD PM AddLoW ContalnerType and Lot* pH: Filtered?: No Size: Comments: fish Sample Storage Location: Freezer 04 one Analysis !Method: Hg EPA 1631, Appendix Analysis I Method: 1-19(Monomethyl) EPA 1630 Mod. Analysis I Method: Homogenization BR-0103 ------------------------ 02 —Bjja: Fli-W Sample Tag#.* DR-1-F-COMPA-2 Preservation: None CollectionDaWl'ime: 10f17106.12.W.00PM Acid LoW. ContalnerType and Lott pH: Filtered?: No She: Sample Storage Location: Freezer#4 Comments, ?,liffle fish Am*jsb I Method: COMIMUS BR-0103 Analysis I Method: Hg EPA 1631, Appendix Analysis I Method. Hg(Monomethyl) EPA 1630 Mod. Analysis! Method: Homogenization ------------------------------------------ BR-0103 Page I of 2 I 7 L „,,y y...;.,-.:.1..L..:.,.,.....::.:::'.:!!WL•Y.crtafF'A�NA4':l�.�Y'1N'u('9:Cn9lG"AxR6'JiY,C¢F:•tWeAYi'%�:i'�iYti![v'�JC.'•:t�M+�`:aViS!:9a�NC<KW%N;r.�ti.:W.Y�ta::ilw?xa�i+++:•:onw.sc�n;.-i:::;• 1 ' aceAnalftal7Y Pace Analytical Services, Inc. 222� Riverside Drive _r Asheville, NC 28804 FBAX? (8) 252-4618 Sub Lab: A 1 Requested Due Date Page Project Number,Contact Address: dress: _. �' Pace Project Manager. rri Phone: _ Price pef Analysis: Fax: (_ j Total Price: Pace Sample #/Sample i.D O Z ► � h�a9 cu_ �_L'7►6u Analysis Requested Comments Dater Ti fd ” t>. ^�.'D - 3958 Avenue NW � Phone:206832-GL06 (lJ) 1KJ 1! S -Seattle, WA 08107 Fwc 2OH32-6017 T$ACBXWALSANALYM&FRODUC1S www.brooksrand.00m' Email: brl@brooksmrid.com Sample Receiving Log Tracking # 06BR1685 Customer: Paco Analytical Contact: Loni Patton Project Ref. #- PAC004 BRL Project Manager. Amanda Fawley OA Level Standard Sample Condition Intact Shipping container intact? Yes Shtppingcontahnertype: Cooler Shipping container temp: See comments Shipping container coolant: Ice Sample Turnaround Time: Contract Turnaround Time:• 28 days ' Due Date: 11/16/2006 Receiving Date: 10119/2006 Receiving Time: 8:15 AM LoggE d••in by: Jennelt Simpson Logan Date: 10/19/2006 Logan Time: 9-34 AM Airbill present? Yes Airbill# See comments Courier. FedEx ' Custody sear present? No Custody seal intact? No COC Present? Yes 'COCISample tag agree? Yes COC Number. N/A Subcontract or PO Number. Not Provided Comments: Two coolers. Tracking# 858558094890 had a temp of -0.2°C. Tracking# 858558094880 had a temp of 0.M. ..........»..................... .......................................................................................... ........... ......... I........................ Lab ID: 01 MOWSub-Mabbc Biota, Fish Sample Tag Vk. FB•1-FCOMPA Preservation: None Collection Datelnme: 10llM, 9:15:00 AM Acid LoW. ContainerType and Lot tk Ziploc, pH: Fikered?: No 5¢e: Sample Storage location: Freezer #d Comments all fish Analysts / Method 'Composite - BR-0103 Analysis / Method: Hg EPA 1631, Appendix Analysis / Method: Hg(Monomethyl) EPA 1630 Mod. Analysis / Method: Homogenization BR-0103 -------------------------------------------- MobbdSub-MaVw Biota, Fish Sample Tag fk FB-I-FCOMPB - Preservatkm None Collection Datelime: • 10118/06, 9:15:00 AM Acid Lot#. ContainerType and Lot fk Ziploc, pH: Filtered?. No Size. Sample Storage Location: Freezer #4 moments: 3lame fish Analysis / Method: Composte 1311-0103 Analysis i Method. Hg EPA 1631, Appendix Analysis / Method: Hg(Monomethyl) EPA 1630 Mod. Analysis / Method: Homogenization BR-0103 Page 1 of 2 ._........ ..............._...�.."- ____..._....�wx�uvwravnveumrsawYHA%':{yIAGF: "'✓.YWr:[ wl lj 03 MatmdSub-MR&bc Bich, Fish Sample Tag #: FB-2-FCOMPA Preservation: None Cotledion Data/rime: 10/18/06, 12:15:00 PM Add Lot#: ContalnerType and Lot#: Ziploc, pH: Fltered?: No Size: Sample Storage Location: Freezer#4 Analysis! Method: Hg EPA 1631. Appendix Analysis / Method: Hg(Monomeo" EPA 1630 Mod. Analysis / Method: Homogenization BR-0103 ---------- ------------------- 04 MatrbdSutr I3bbc Blota, Fish — — -- -- — — — SampieTag#: FB-2-FCOMPB Preservation: None Collec50n Dalafrime: 10/10/06,12:15:00 PM Acid Lot#: ContainerType and Lot 0: Ziploc, pH: Filtered?: No Size: Sample Storage Location: Freezer #4 Domm2ntsm 2,lamefth .Analysis/Method: Composite BR-0103 Analysis / Method: Hg EPA 1531. Appendix Analysis! Method: Hii(Monomethyq EPA 1630 Mbd• Analysis / Method: Homogenization BR-0103 ------------------------------------ 05 ------ MatrtxlSubAblrbc Blots, Fish Sample Tag #: FB-3-FCOMPA Preservation: None CoRecUw DaWfte:. 1Dh8106, 1:50:00 PM Add Lot#: ContakwType and Lot #: Zl)loc, pit- Filtered?:.. No; Size: Comments; 11 small fish Sample Storage Location: Freezer#4 Analysis / Method: Composite BR-0103 Analysis / Method: Fig EPA 1631, Appendix Analysis / Method: Hg(Monomethyq EPA 1630 Mod. Analysis / Method: Homogenization BR-0103 - • ------------------------------------------ 06 Mafrbd5ub Matmc Biota, Fish Sample Tag # FB3•FCOMPB Preservation: None Collection Date/Time: 10/18/06, 1:50:00 PM Acid Lot#: •ConiainerType and Lot#: Ziploc, pH: Filtered?: No She: Comments: 3 lame fish Sample Storage Location: Freezer#4 Analysis / Method: Composite BR-0103 Analysis / Method: Hg EPA 1631. Appendix . Analysis / Method: Hg(Monomethyn EPA 1630 Mod Analysis / Method: Homogenization ------------------------------------------ ' BR-0103-80 SSS���mmm'��I�� s' afore Date i //ustodian Q i �X.Gci- 1AO 7,./e(o y sign TDatB Page 2 of 2 02:40:49p.ii.- ftco.", Ilymi $In*#$ in M Nyomf* DrM Fla'ceAnalydcal iyc"M 0.44,7176 Far 0M.11618 FAX TRANSMITTAL Total # of Paqes:,2, TO: Pr KA4)uA FROM: Phone: Phone: (828)254-7176 Fax: Fax: (828)252-4618 CC: Urgent- For Review Reply ASAP Please Comment Remarks: rl &amid - up . p4Qil1�J- •0. / V.,tW!MCj � . Sub Fax: Analytical Pace Analytical Services, Inc. 2225 Riverside Drive Asheville, NC 28804 (828) 254-7176 FAX (828) 252-4618 Requested Due Date Pace Project Number. 7 43 - - . Pace Project Manager, rri {� P.O. #: (((jjj Price per Analysts: Total Price: Sample #/Sample I.D. MaMx Premv*We I DatanIrne CoUcted Analysis Requested IT MWAIM�! ' is [MVI 1 `.. ' • • �iL: r � rim FAD-OXI-40 NI WOVIMI� _-"77 : f _ 711 Comments .. .� ��. ��M1•��,..,•... ,. iiv':e�'5RC:7v 'r.'+p.R.\1i'a! �.. •l0•`vr.�' 1. +:}.\ � .v� . x'S`.:"li7fiv.. "' G1i .. P:q... .,... �, ., :-•rr,v'r•m�;.ror:r,'rz7G�,�;•.^;fnxi:F,+n`Ak::vSl��!kxt:irlu4,rYi�..?:v6,ti'Sa,�7n.,`�f.+MY.i:t<..:...`Y•;?. E:d..'s•Gv,. .n AsdhS. 2 � r:;.+2, .. :ar,� .]...u�%...h ,.v?•.S\tCv�2WlC.b. C..> xh+;C.N•, in �,.a,. vi �w:�'%'%.`.,�:w`Y.,,T....`�??'�R�!�?k�'.>,�`�C� l .. '! . CHAIN -•OF -CUSTODY/ Analytical •Rquest Document Analytical acePage: The Chalit-o4-Custody. Is &LEGAL DOCUMENT, All rolawat tislda must be eompietee! ocCurataly. of Section A Section. ,,.: Section 0 Required Meattnformatlem' RoqulmdProleotlnformd4ty". , .. •. : : Irnooelydomwtion: Comparl ReP�To: AUendan: Addtbas Copy To: Company Nettie: O NPDES O GROUND WATER ❑ DRINKlNO WATt:R : ❑ 08T O RCRA ❑ Othor Addrssai Pace Qum Rafww*G:. a O% OIL 10IN 'O❑ MI MN,'>NC Ent" To: Pamhaas Ordsr•Nos OOH OSC WI ❑OTHER 1 t F ct Narta: P ue Project Manager. Requested Out Date/TArNumber: FProt P73oe Profile d:. Fla°�•a (Y ' ". . Section D Requirsdcunt lnkm"atloo MaiBg cadre copy.. nNyale S A M P i E A D DROMNG*ATER MER ' T9 OW . �. . . V TER, .� One Charsoter per bat.aL (A Z, tFB! SOSISClTO SL . OL W COLLECTED, :) Sample• IDa t.BU3T BE UNIQUE A�� TITHER CompoSnE ETART ccmpo.srm EHGGRA9 TiSSiTE "ia .DATE iRAE •DATE TIME ¢ a. g P. Projsa N.. Wa @T ' Lab to Additional Comments: s • a :.1 PRINT dame SEE REVERSE SUE FOR iNSTRNOTIONs vr+ATVRE a • �•-lr-1R'ilVl UAIt I TIME - - ••• • .• � ■il�rs��teta r,Ttuze ���e®® NO." pol"d asud 171 Diva BM 3m voicaommmWol Avagatmoaloo a-RIMT= - - '90100ACI 101bl" pef"i L-7-113H1OII LAAW Dell "oil MWOM498 Opm Owd ONK mi., Nil mt). *110 voli vwov I I L$ft 4,1 vum OWNWOM u muvm amno"D u U",.Pv V 0 uop*og JO :&Bud -AMpinsoo p44ophoo2 eq lovitu oplell ju-slas ov 2Nsinnoon ivm si xpwn*-pAnr4o OU ;uewnoo(3 ;senbeH jv*gAjvuV /,koo-Lsno-:i0`NIVH3 Immmmm I Val WN =WWW En 10 z 10 W4 sod topeaq suo al 31dVIVS aPWV#b*W () UotpGS *W"RN ;LWmm --a P"-d-d -V-N :01IOW 3 row jam ow"sn't IUM" AJOIUI PJ"D poiInhom - a u6poes ,.,.. ...:,•x,,•.,erne.;.>::xn:,��'xen'n..w:a'P:wvcnc:wi"l«emn:.sN;.n.Horn„y¢,'.:.vNq.;xwvs,2x�bxntY.t�tir�FfioU.evftaX:>"!tet??¢:iW,:kiCs�"J��t. W:\v>Cxi#:a;veisV)wi;b=.Ke;:; v�7Vk=.,tacxr.S.u:�tiR<zK:atrLYa' ztl:cv:eK:aiaftSWTk:CeYfS+FtkY.W!:�iC24'St:s�.`tN':;4Ntaa'k:�vl+wraVa�}Y:.x:3%r:'7V;tnY:atsitfr.;a+i>?T.h�rn'�HShJ�xYvw'„^. xi47An'Sa'+(is<::irxGny:i'.::»a,:rv.�ttFslxx�. aceAnalytical� tit � , .4 O Pace Analytical Services, Inc. 2225 Riverside Drive Asheville, NC. 28804 (828) 254-7176 FAX: (828) 252-4618 Requested Due•Date: Pace•P*ct Number WS C 14-7 I, Pace ProjeCt Manager' boir't P.O.* $ `Price per -Analysis: ; Total -Price: i I Pace Sample #/Sample I:D: Matrix ' prei'etvetw- Defenime'Colle ed•. Analysts Requested Comments 2? : i�.:P�' �d 17 as r�� Il�'ar+a An!ohifin!21* CHAIN -OF -CUSTODY / Analytical Request Document The Chain -of -Custody is a LEGAL DOCUMENT. All relevant fields must be completed accurately. Page: of Section A Section B I Section C� ;y .j Required Client rm Infoation: Requk" Piojact Information: Invoice Information: Company a^" a Report To: UI Attention: — --.._...... REGULATORY AGENCY Address Copy To: Company Name: n NPDE6 ❑ GROUNDWATER 11 DRINKING WATER 1"I UST I..I RCRA f.:l Otfier Address: _ I.:IIL IIIN HMI I.'IMN �NChase Email To:PurchaseOrder No.: Pete Quote Reference: Dom Li Sc NO C.IOTHER �-- — Phgq°, r,��� (J Fax Project Name: Pace Project Manager:• -- 111N�ke i� Requested Due DoWTAT: Project Number: -- Pace Profile 9: Filtered fVINI Rrgwsted Valid. Matrix Cods Section D Requind'Cfientlnforrnation hLT cgoE G WATER DW PreservativesI Angels: .� iSVA MTER WT10 SAMPLE I D WASTEWATER g P §PRODUCT One Character per box. OIL OL AWI E tXID IR AR �v fBE CTED mr, COMPOSITE START �COY�031TE t]VUrGRA6 v o O h Q O Samples We MUST UNIQUE OTHER OT TISSUE DATE. TIME DATE TIME y N m T a '� � P.ce Project Number � TO . � � � LaA 1.0 C p A o t,Z;t�e�. '? VMP & k q-a757a-?_ �Stz- 2 - -- - . * 0- r ! A� o aI Comments: e ° SAMPLE CONDITION 143I an'. 100.- PRINT Nrime. pp Ly t: � m SEB REVERSE SIDE FOR W6#RUOTION6 ORIGINAL. 51^'NATURE of t32 UAT'E Eignod {Irau1 D01 YYj 6 _— — _ l Z w,x ��'�/•''y•' '�"9 �1' \W't:'\W,tyk",,,,. \"t::"0 I,OR.b�lu!:?C7:M4�'�riF"F\i1Gvh1!•1?.y.;aY4j5�:.`,arM'.rP.�C,�t�0.i.7�K'v^W:i/�in �b'.2�.Q1Y'Zi.`.,�i�:Z,�Y`.�F. ZA, 2-- A--1..s;--I" CHAIN-OF-CUSTODY/Analytical Request Document The Chain -of -Custody is a LEGAL DOCUMENT. All relevant fields must be completed accurately. Page: of � � "�P.EGULATORYAGENCY -.. Ate' a,r. 1.. - . . ■ - � ■ SI'(E LOCATION ■ ■ ■ •. WT WATER WASTE WATER WW SAMPLEID PRODSOIUSUCT • • .. r` One ' 81. OIL • WIPE WF AIR AR ;IT Samples IDs MUST BE UNIQUE OTHER OT TISSUE TS An 12.-■■■■■®■■®®■■■®®■■■�■�■■®■ � �,®�■e■gip■�®,■r ELIPI1 [jl.:,I•IED iiIY i AFFI! IATi0N CrATE riA"k l+': :i F I Ei.: BY i .i=FEL,iA k i:i%f � DATE: TShJIC VAMPLE CONDITION SAMPLER NAME AND SIGNATURE :.A ` ^w Mercury Sampling Results r5-G'Gt:'^'u ,}r " 3 R ".h Qk h 'J+=` . . _r ✓ fy �^L��'�� �, t �-.: 5:� r a,a nh r u.'.: ..; a - r SpXe Location �• -`x Sv 3 H'S.'4 F§� L`4'^Yy � i �� ga u.:�- r2"kr?1`[.F. DateviNtimber ,:.. S'� i •^ t"hC$ 5" W;, kr `"l +J ..rov1Y k $,� 34 i ;: +c,� �u �. $ z" ^t'.#N1 }J ei Sam»Ie ro= h Fs s. Sr x y .0 -.c G 1} "C''... '2`i{1 1t- �, } .Y3a k�l J y.-'%p a n.: �Xt -i � Yak E0-k s3 ,FSample ''`t+;✓,k i.Hk ..,'.5,=:?'har"" a Sam IefiT e a ..., +r r": �`tlMiIN yyb .`r,t� h S -,. R''L S 4t'k F Coor(Ilnates� :'L�tittzde ,.,,:.,� ,-,, n4 ,.w,.,ro a.s,4 1�orth }tea Easiw �, d" h„F mm`b- `x. h�4���Lt'=,'t' ��"✓' k'- A �A _ tF' , XM yin Ai' 'G: ` ?.$5:-'S� ..". LLin�j+FYU� f a�� r fm�.= Davidson River 10/17/06 DR-1-F-COMPA-1 Brown Trout (Stocked) Davidson River 10/17/06 DR-1-F-COMPA-2 Brook Trout (Native) Davidson River 10/17/06 DR-1-F-COMPB Northern Hogs Head Sucker Davidson River 10/17/06 DR-I-SED1A Shallow Sediment 567,392.7851 897,816.1298 35' 15' 09.6569" 82' 41' 33.9718" Davidson River 10/17/06 DR-I-SED2A Shallow Sediment 567,411.8642 897,845.5331 35' 15' 09.8563" 82' 41' 33.6261" Davidson River 10/17/06 DR-I-SED3A Shallow Sediment 567,407.8559 897,849.9978 35' 15' 09.8184" 82° 41' 33.5705" Davidson River 10/17/06 DR-I-SEDIB Deep Sediment 567,392.7851 897,816.1298 35' 15' 09.6569" 82° 41' 33.9718" Davidson River 10/17/06 DR-I-SED2B Deep Sediment 567,411.8642 897,845.5331 35' 15' 09.8563" 82° 41' 33.6261" Davidson River 10/17/06 DR-I-SED3B Deep Sediment 567,407.8559 897,849.9978 35' 15' 09.8184" 82° 41' 33.5705" French Broad River 10/18/06 FB-I-COMPA Blue Gill French Broad River 10/18/06 FB-I-COMPB Carp French Broad River 10/18/06 FB-I-SED-IA Shallow Sediment 567,102.8078 896,127.7496 35' 15' 06.1690" 82° 41' 54.1871" French Broad River 10/18/06 FB-I-SED-2A Shallow Sediment 567,058,8350 896,144.7885 35' 15' 05.7406" 82° 41' 53.9621" French Broad River 10/18/06 FB-I-SED-3A Shallow Sediment 567,046.7132 896,149.4855 35° 15' 05.6225" 82' 41' 53.9000" French Broad River 10/18/06 FB-I-SED-1B Deep Sediment 567,102.8078 896,127.7496 35' 15' 06.1690" 82' 41' 54.1871" French Broad River 10/18/06 FB-I-SED-2B Deep Sediment 567,058.8350 896,144.7885 35° 15' 05.7406" 82° 41' 53.9621" French River 10/18/06 FB-I-SED-3A Deep Sediment 567,046.7132 896,149.4855 35' 15' 05.6225" 82° 41' 53.9000" QBroad French Broad River 10/18/06 FB-2-COMPA Large Mouth Bass French Broad River 10/18/06 FB-2-COMPB Carp French Broad River 10/18/06 FB-2-SED-IA Shallow Sediment 566,852.3732 898,090.4770 35' 15' 04.4160" 82' 41' 30.4236" French Broad River 10/18/06 FB-2-SED-2A Shallow Sediment 566,838.6541 898,087.6868 35' 15' 04.2794" 82° 41' 30.4510" French Broad River 10/18/06 FB-2-SED-3A Shallow Sediment 566,788.6772 898,077.5226 35' 15' 03.7816" 82° 41' 30.5511" French Broad River 10/18/06 FB-2-SED-1B Deep Sediment 566,852.3732 898,090.4770 35' 15' 04.4160" 82' 41' 30.4236" French Broad River 10/18/06 FB-2-SED-2B Deep Sediment 566,838.6541 898,087.6868 35' 15' 04.2794" 82° 41' 30.4510" French Broad River 10/18/06 FB-2-SED-3B Deep Sediment a 566,788.6772 898,077.5226 35' 15' 03.7816" 82° 41' 30.5511" French Broad River 10/18/06 FB-3-COMPA Blue Gill French Broad River 10/18/06 FB-3-COMPB Carp French Broad River 10/18/06 FB-3-SED-1A Shallow Sediment 565,649.9728 900,731.4486 35' 14' 53.5007" 82' 40' 58.0616" French Broad River 10/18/06 FB-3-SED-2A Shallow Sediment 565,637.9830 900,731.9441 35' 14' 53.3824" 82' 40' 58.0502" French Broad River 10/18/06 FB-3-SED-3A Shallow Sediment 565,580.0000 900,735.0000 35' 14' 52.8100" 82' 40' 57.9633" French Broad River 10/18/06 FB-3-SED-1B Deep Sediment 1 565,649.9728 900,731.4486 35' 14' 53.5007" 82° 40' 58.0616" French Broad River 10/18/06 FB-3-SED-2B Deep Sediment 565,637.9830 900,731.9441 35' 14' 53.3824" 82' 40' 58.0502" French Broad River 10/18/06 FB-3-SED-3B IDeep Sediment 565,546,0615 900,735.7435 1 35' 14' S2.4751" 82' 40' 57.9633" Mercury Sampling Results ^ Y�'•{ A .? r SampleL�ocato F -• K agr "i Datgi per . xF x n k ,3` "'„ Ei,A = Numbers,' ,w r 3;~ 77177N777,7 jdla �i ..v.. ryk� F ! xR< d"` 5 5 t✓ 'ro rtAi� :, k F•Sample'xTYP_e a ;, ri lereury� ep"�{ 4 rz'�1.Y7�o .r iR -Monometh '..} ay Y qO.G... g ^ !Mercury a iT-f 4�,.'r WAeri31"f 41,aSF m G `.`� < Me t� Sohds 'r P°a ti�TOC 'i (wet wt) s.'�_ `i-;i?;1 (wet wt.)M, '°E .o-#_ `4 r'w.ut (dry„ wt )w y .moa .:.�� XO {, /a .A ('dry wt) t ten `� a+...'; Davidson River 10/17/06 DR-1-F-COMPA-1 Brown Trout (Stocked) 0.0183 0.0095 Davidson River 10/17/06 DR-1-F-COMPA-2 Brook Trout (Native) 0.3 0.259 Davidson River 10/17/06 DR-1-F-COMPB Northern Hogs Head Sucker 0.187 0.154 Davidson River 10/17/06 DR-l-SED1A Shallow Sediment 0.084 49.4 95000 Davidson River 10/17/06 DR-I-SED2A Shallow Sediment 0.061 62.7 15000 Davidson River 10/17/06 DR-I-SED3A Shallow Sediment 0.018 72.2 1900 Davidson River I 10/17/06 DR-I-SED1B Deep Sediment 0.12 38.9 180000 Davidson River I 10/17/06 DR-I-SED2B Deep Sediment 0.064 66.8 22000 Davidson River I 10/17/06 DR-I-SED3B Deep Sediment 0.015 71.1 2800 French Broad River 10/18/06 FB-I-COMPA Blue Gill 0.123 0.094 French Broad River 10/18/06 FB-I-COMPB Carp 0.254 0.111 French Broad River 10/18/06 FB-l-SED-lA Shallow Sediment <0.015 68.5 5200 French Broad River 10/18/06 FB-I-SED-2A Shallow Sediment 0.034 39.4 20000 French Broad River 10/18/06 FB-I-SED-3A Shallow Sediment 0.19 50.3 18000 French Broad River 10/18/06 FB-I-SED-1B Deep Sediment 0.062 57.2 18000 French Broad River 10/18/06 FB-I-SED-2B Deep Sediment 0.049 35.0 49000 French Broad River 10/18/06 FB-I-SED-3A Deep Sediment 0.038 59.3 15000 - #�tASB French Broad River 10/18/06 FB-2-COMPA Large Mouth Bass 1.97 1.85 French Broad River 10/18/06 FB-2-COMPB Carp 0.609 0.339 French Broad River 10/18/06 FB-2-SED-lA Shallow Sediment 0.015 74.8 1800 French Broad River 10/18/06 FB-2-SED-2A Shallow Sediment <0.013 75.2 530 French Broad River 10/18/06 FB-2-SED-3A Shallow Sediment 0.034 67.4 18000 French Broad River 10/18/06 FB-2-SED-iB Deep Sediment 0.022 68.5 2300 French Broad River 10/18/06 FB-2-SED-2B Deep Sediment <0.013 76.4 540 French Broad River 10/18/06 F13-2-SED-3B Deep Sediment <0.014 73.3 2200 Downstream Ma . � �'• sc '" r � ..�, n �..� � : �-s, . v., ' .�.�: } ��, �� `. �� , s- �::- -w �: ''`` .�� . "� French Broad River 10/18/06 FB-3-COMPA Blue Gill 0.265 0.204 French Broad River 10/18/06 FB-3-COMPB Carp 0.228 0.135 French Broad River 10/18/06 FB-3-SED-lA Shallow Sediment 0.023 65.4 22000 French Broad River 10/18/06 FB-3-SED-2A Shallow Sediment <0.013 74.3 3300 French Broad River 10/18/06 FB-3-SED-3A Shallow Sediment 0.022 62.3 6600 French Broad River 10/18/06 FB-3-SED-lB Deep Sediment 1 0.0321 58.91 22000 French Broad River 10/18/06 FB-3-SED-2B Deep Sediment 1 <0.0131 74.51 1700 French Broad River 10/18/06 FB-3-SED-3B Deep Sediment 1 0.0241 62.21 13000 I i; i j� �: � -4,?4 � �� ink i Iz SZ3 j i I � I 11 � I i rNI, R °. _ 2 �, -" _ „�-s .'S,e�a 'tom M' ?' m a., � -: ,3 s �"a"�.. �" -3^ �"L 'k e� a Appendix C Fish Photograph -1 IA WPGVL\PJT\ 00-71708 \ 01 \ R007170801-001.DOC December 2006 •al 4 i - f r t 4 tt * f irk if dS- y� _ M _ - �{ �'�t'' ' ok'i'a`;' '•° I [' '+ -# t _ aryl #; r t x vs" OF W ATF9 Michael F. Easley, Governor C� Q William G. Ross Jr., Secretary yNorth Carolina Department of Environment and Natural Resources r Alan W. Klimek, P.E., Director Division of Water Quality December 31, 2002 CERTIFIED MAIL RETURN RECEIPT REQUESTED MR. STEVEN H. SMITH, CHIEF OPERATING OFFICER RFS ECUSTA, INC. ONE ECUSTA ROAD PISGAH FOREST, NORTH CAROLINA 28768-0200 Dear Mr. Smith: ? AN 6 201113 Subject: Application No. WQ0013419 Additional Information Request RFS Ecusta, Inc. Ecusta Paper Mill Surface Disposal Unit Surface Disposal of Residual Solids (503) Transylvania County This letter is in reference to the above -referenced permit renewal application package received on September 4, 2002 for the operation of the subject residuals surface disposal unit. On October 15, 2002, the Division of Water Quality (Division) sent you a correspondence containing an item that needed to be addressed before our review of the permit renewal application package could proceed. A copy of this correspondence is attached to this letter for your review and reference. Note that a response was required to- be completed and submitted to the Division for review no later than November 15, 2002. As of this date, the Division has not received a response to this. correspondence, nor has the Division received a request for an extension to respond to this correspondence. You are hereby notified that all additional information requested in the October 15, 2002 correspondence should be submitted to the Division no later than January 31, 2003. Alternatively, if the surface disposal unit is to be closed as a result of the paper mill's closure and an operational permit is no longer iequired, a request. to rescind this permit or to modify this permit for closure/post-closure management should be submitted to the Division within this same time schedule. This request should include a formal closure plan and a post -closure management care program for the surface disposal unit. This information shall be specific to the surface disposal unit as well as relate to the Permittee's future plans for the land. A schedule forimplementing both'the closure plan and the post -closure management care program shall be provided as well. The Division will accept a submittal that has been prepared in accordance with the document entitled "Process Design Manual: Surface Disposal of Sewage Sludge and Domestic Septage (EPA/625/R-95/002)," published by the United States Environmental Protection Agency's Office of Research and Development. Aw EtIIt Non -Discharge Permitting Unit Internet httpJ/h2o.enr.state.nc.us/ndpu 1617 Mail Service Center, Raleigh, NC 27699-1617 Telephone (919) 733-5083 Fax (919) 715-6048 DENR Customer Service Center Telephone 1 800 623-7748 An Equal Opportunity Action Employer 50% recycled/10% post -consumer paper If a response is not received by this revised due date, the Division will return your permit application package as incomplete in accordance with North Carolina General Statute § 143-215.1. Please be advised that operation of a residuals surface disposal unit without an active permit is a violation of North Carolina General Statute §143-215.1 and may subject the owner/operator of the unit to enforcement action in accordance with North Carolina General Statute § 143-215.6. Civil penalties of up to $25,000 per day per violation may be assessed for failure to secure a permit required by North Carolina General Statute § 143-215.1. If you have any questions regarding this request, please do not hesitate to contact me at (919) 733-5083, extension 353, or at shannon.thomburg@ncmail.net. Thank you in advance for your cooperation and assistance. Sincerely, Shannon Mohr Thornburg Environmental Engineer Enclosure cc: Ms. Kerry Becker, Asheville Regional -Office - Water_ Quality Section -(w/o enclosure) Mr. David L. Goodrich, Central Office - Groundwater Section (w/o enclosure) Permit File WQ0013419 (w/o enclosure) OA -- , n. r g■ �r r a ROY COOPER Suits 300• Western Office A1lomcyGeneral 12A College Street Phone: (828) 251-6083 Asheville, NC 28801 Fox. (828) 251.6338 FACSIMILE TRANSMISSION COMER SHEET Note: The information contained in this facsimile message is confidential Information intended onlyfor the use of the Individual or entity named below. If the reader of this message is not the intended recipient, you are hereby notified that any dissemination, distribution or copy of this telecopy is strictly prohibited. If you have received this telecopy in error, please immediately notify us bytelephone and return the original message to us at the address above via United States Postal Service: Thank you. DATE: February 28, 2003 T0: David R. Blackwell '@ a Special Deputy Attorney General° FAX NO: 919-716-6763 8 r lrfl, TO: Dan Oakleya¢�,�? �T General Counsel, DENR FAX NO: 919-715-3060 TO: :fames C. Gulick Senior Deputy Attorney General. FAX NO: 919-716.6767 TO: Forrest R. Westall Regional Water Quality Supervisor FAX NO: 251-6452 FROM: Sueanna P. Sumpter Assistant Attorney General Attorney General's Western Office SUBJECT: State of North Carolina ex rel. Ross v. Ancefin LTG. Tran$ylvania County file no. 03 CvS 98 NUMBER OF PAGES INCLUDING COVER SHEET: 9 COMMENTS: Attached is a copy of the temporary restraining order entered yesterday afternoon. As you will note, we have asked the Sheriff to attempt service upon U. Puri at the mill site and will follow up An Equal Opportunity / Affirmative Action Employer 1 n 1 nn f` nn n� n� n7 I nnnn 1 n� non • VD 1 In 11 IA 11 .In 1 1 U two on his efforts later. today. The hearing on the motion for preliminary injunction is scheduled for Friday, 7 March 2003, 10 a.m., in Brevard, before Judge Guice. STATE OF NORTH CAROLINA COUNTY OF TRANSYLVANIA IN THB GENERAL COURT OF JUSTICE SUPERIOR COiJ•iSIQN File No.: 03 CvS STATE Off' NORTH CAROLINA, ex. rel., ) WILLIAM G. ROSS, JR., Secretary, ) NORTH CAROLINA DEPARTMENT ) OF ENVIRONMENT AND ) NATURAL RESOURCES, ) CERTIFICATE OF SERVICE by Sheriff Plaintiff, } v, ) ANCEFIN LTD., a corporation of the United ) Kingdom,. Defendants. ) I HEREBY CERTIFY thafcopies of summons and complaint and temporary restraining order were received um and Served as follows: ❑ By delivering to the defendant named above a copy of the summons and complaint. ❑ By leaving a copy of the summons and complaint at the dwelling house or usual place of abode of the defendant named above with a person of suitable age and discretion then residing therein. ® As'the defendants are a corporation, service was affected by delivering copies of the summons and complaint to the person named below. Ndme and address of person with whom copies left (if corporation, give title of person copies left with): Upendra Puri, Chief Operating Officer Service Fee Paid Date Received Name of Sheriff gy; Date of Return County:.'Tiansylvaala Deputy Sheriff Making Return k LW STATE OF NORTH CAROLINA IN THE GENERAL COURT OF JUSTICZ. i ��� ,� y �jt� : �. tUPERIOR COURT DIVISION COUNTY OV TRANSYLVANIA"� � LE NO. 03 CVS i ar. iJ iL STATE OF NORTH CAROLINA, ) ex rel., WILLIAM G SECRETARY, NORTH CAROLINA ) DEPARTMENT OF ENVIRONMENT ) AND NATUM RESOURCES; ) TEMPORARY RESTRAINTNC3 ORD i� plaintiff, ) v. ) ANCEFXN LTD, a corporation of ) the United Kingdom, . ) Defendant. ) THIS CAUSE CAXZ ON 'TO 'BE HEA=' and was heard ex parte upon the motion of the plaintiff State of North -Carolina -for issua=ce of a temporary restraining order. It appears to the Court as follows; l,. This in an action for injunctive relief filed by the State of North Carolina for enforcement of certain laws -.and rules adopted for protection of the environment, and therefore protection of the publa.o health, safety, and welfare. 2. This matter concerns Certain property real and personal located in Transylvania County, North Carolina, now owned by. the bankrupt corporations RFS Ecusta and, US RFS, and known as the Ecusta mill. Pursuant to Order of •the'B•a.nkruptcy Court, the mill was sold at auction conducted on 18 February 2003. The defendant was • the successful bidder at that 'auction. By. Order dated 19 , February 2003, the Bankruptcy Court confirmed the outcome of. the auction sale. 3. The defendant is presently scheduled to take title to the Eousta.mill as of Friday, 28 February 2003. 4. The defendant has failed and refused to provide adequate assurance to the State of. North Carolina that it can and will operate the environmental. systems located at the Ecusta mill in a lawful manner.' _z. .4uaWdtnba pug. 5vra•4 sAs SjxYpnTau-F ' SuFao'4TT10M puV f4uatpEsx4 +ua`,r�oaTToo xa�BMa�BEM 1��?M 'pa �� o se aq-Fs uo quamdTnba puv sw*-48A8 TTV puE AXM ;o uo-F� sxac�c� 'aadoxd ao; xoxod AgpuEns a.4Enbaps •gpt.&oad a; 4ua-FoT;9ns sxo-4ExauaS ora'4aaTa• e[qv-4xod ap-rnoxd 10 :Ejsnoz S&E quEpuo;ap Aq PTag s uzzad A TTEr�B aaggM agq Aq poaTnbax szs�TEu Aao.4E,xogET pum Su-FTdIdEs saTTddns ATquasa,ad •h�c�duiaa • goTgre •�suo'c�.nTog • Su��say T��uauiuoaT�t�� Aa aq'rs • E40"E ex�l uo paaEaT AT4u9saxd saT�rtT',raE� age o� aoz.&aas TEb-z-4oa.Ta uTEquynm ATsrionuzPuoo S ITTT;puET 'Rot Mau ago qv xa:jEMpunoxS pagBu-rmequQo ;o rh%Tdmnd puE '5,zT=aTEM9p 'aSEuygxp q'4YM paEzoosseuausd'rnba' puE suias�Ls SUTPftTou-F 'SuT.Eo'4-Fuo,u puE '-4u9mgv;Dx4 'wort �aTToo aa�axca s t+s ggz.K p9lvE oassa 9gTO uo quaMf#rtba puE sma4gAs T`IE pug Aum. agvxado ATaadoad 0; 4uaTo',r;;ns aoTAaes TVoTxjoaTa uTE4uTvm ATsnOnuTluv'o aSu.zMoTTo; ago o- P94T TT' as 4ou "4nq apnTaUT TTEgs s0arnsv;6uY asaR,I ' s'C'C F�FugT piEs uxox squguTuzE�uoo �o uot�Es�tmt auk uzox . 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A'4TTTq•s.4s TE,%n,4or►xgs aansua, o-4 saF FTzos� ' asoq �o uT aa3 MOZE; saBxEuosTp pua sazgrtTToE; juau=:;Eaa-4 sa sMa sEM . o .uo-paxado 5u-rzTxog4rve bma eqq Aq 91IT4 uz aossaoopaad SqT of paT%OMT sgT=8d TTV ggTM ATd=oo ATTng oq .puE a'os;an9 pugT aqq oquo =94vMel9'sM 90 4z80d9p xo 91EoS auk o sa+a4EM ;Rqq 04 xogEMajsEM ;o aF,zauoszp TnpMETuri uE ;uaAaad 04 /,.,TEssgoau soxnsEam TIE pug Auv SNE4 ATagSTPaMMT TIVXTO . `T • .- : TTYux E�sno� age o� aT�z� Sur�E� �odtt '�uEpua�ap eu� �Eg� Q�2t3Ci'da �80�3�i�Hs SI • SI, • •04.xad xa •paneST ATSuTpx000E s-F xapx� szu� • 5utxEaq .zap A:tT=laoddQ = 4T .01 aoTIou xo; MoT.TE •04 quEpua;ap ag4 a; TTtt� Egsnoa aq-4 ;o aTEs aq'4 ;o uo!4eTdutoo . paTripagas agp o-4 . xo-Fxd uTgm99 '4ou -saap avzz4• agvnbapy • 9 •+au�To.zE qxo ;o {[4 04 =V7 aTgEa daxxt u�. �nssae TtFM ��xtETdutc�o s.� Tqu�sT'� age u pagx osap sE Eu-�toxg� g�xoH 3o a E S aK �� saTn'�vpug om auk ZM aouE�T oo uT TTT12 E4suOs age a'4Ex0d0 04• a.=TTEA • s associated with drainage, dewatering, and pumping. of, contaminated groundwater at the new ash landfill= maintain laboratory and other environmental services, such as collection. and analysia of effluent discharged into the waters of the State; E. timely file the ;pelf -monitoring reports required by the DNQ permits issued 'to defendant' a L predecessor in title; F. maintain all records required by the water duality permits _issued to the defendant's predecessor in title and make such cont,inuousl.y available to the plaintiff for inspection; �. maintain sufficient, qualified staff on .site to ensure proper operation and maintenance of all environmental systems, and timely reporting and communications to the DWQ regarding wastewater treatment issues; H. properly operate and maintain all components of the wastewater treatment systems in cox nplianc with the grater qual,:.t,y - permits issued to the defendant's predecessor in title and further maintain the dike of the ASB in. compliance with the Dam Safety Act and implementing rules 'so as to prevent any unlawful release of wastewaters into the waters of the State; 1. timely sample ground and surface water at thoi Ash and island landfills, timely submit laboratory analytical data to the Division. of *Waste Management, and undertake groundwater assessment and corrective action as xnay be required at each of the landfills; maintain a source of .water sufficient, to ensure that the mechanical., water -fed seals on process chemzi�al tanks do not fai.l.; . K, in the event the defendant does not' resume manufacturing operations at the Ecusta mill site: -3= 1. close all permitted -wastewater facilities - and- all components thereof within a reasonable time. and in accordance with closure plans to be submitted to .and, approved by the DBNRI and 2. close' the new ash and island iandf!ills. within a reasonable time in accordance with closure plans approved by the Division of WnLsts Management in accordance ISA N I C . Administrative Code ISB .0505. �. comply with all applicable rules• governing the management 'of hazardous waste at the site, Specifically, the defendant must: 1. manage all hazardous waste being accumulated at the site in containers and tanks, and manage such waste in accordance with all applicable regulations as•specified in 40•CFR 262.34. 2. maintain and operate the facility so -As to minimize the possibility of a fire, . 6x lc,sion or any unplanned. sudden or non -sudden release of hazardous waste or hazardous waste. constituents to air, -soil„ or surface water which could threaten -human health or the environment. 3. maintain the facility so as -to ensure the continued.. operation and effectiveness of all alarms, sprinklers and other •fire suppression devices. 4. retain quali.fi.ed personnel, trained in accordance with the- requirements of 40 CFR 265.16, to . ensure co;nyliance with- the Hazardous waste Rules and the Courts Orders. 5. immediately remove all, hazardous waste from product or raw_ material, tanks, vessels; pipelines, or process unit$. - S. ensure that materials which are not, required to be managed as hazardous waste are removed from product or raw* material tanks, vessels,` pipelines, or process units prior to any interruption of electrical power to. the facility. 7. provide, in writing, • documentatioA to support• any' -contention that certain materials rezwi,niag at the facility do not constitute a .solid waste. S. within' the time allowed in 40 CFR• 262.34, arrange' for the removal, •transport and delivery of all hazardous waste at the site to a permitted hazardous waste storage, treatment or disposal facility, and submit to DWM copies of all manifests associated with such removal, transport and delivery. 9. maintain all records requirdd to be retained by 40 CPR 262.40, and make such documents. continuously available to the plaintiff for inspection; 2. This- Restraining order shall. be enfordeable by and through the contempt powers of this Court,•pursuant to Chapter -SA of the North Carolina General Statutes. 3. A copy of this Restraining Order be served upon the defendant in the =annor now provided for service of process. 4. This Restraining Order shall expire ten days from this, date unless extended by further order of court or by consent. 5. The pl iffI s otion for preliminary injunction will, be heard ant th 2003 team of Court for `County, at the ` 2t County ourthous . at t or as soon twereaf ter 40 the Court may reach it. L-NTEFt D this the. day of February, 2003, at o'clock . -S- � pn� 4=03.-X0T-m9c%S luspY.aag x =IRO --ap HoD C-dOz struvaox0ii •ir v Filed jnr regis•trad on the day 20 y at rineL m, and ie istered Pei oa the day al 10,Q in krw: of age Re 'ster of Deeds•, D-011sv1vania o ty 000183®00713 Excise Tax: None (See Order attached as Exhibit B) SPECIAL WARRANTY DEED Q= j jOu st I I, 2003 —DnLA- Tax Parcel Nos.: 8596-49-6733-000. 8596-49-7911-000. 8596-49-7990-000. 8596-49-8754- 000. 8596-49-8865-000. 8596-49-9829-000. 8596-59-1877-000. 8596-59-2857-000. 8596-59- 3846 000.8596-59-4854-000.8596-59-4908-000.8596-59-5927-000.8596-59-6966-000;8596- 59 7804 000. 8596-59-7927-000. 8596-59-7975-000. 8596-59-8954-000: 8597-31-8577-000; 8597-32-8849-000. 8597-40-5038-000. 8597-40-6036-000. 8597-50-1093-000 8597-50-3042- 000• and out of 8596-69-9440-000; Mail after recording to: Robert W. Allen, Robinson Bradshaw & Hinson, P.A., 101 _ North Tryon Street Suite 1900 Charlotte North Carolina 28246 e t prepared b : Robinson Bradshaw & Hinson P.A. (RWA), 101 N. Tryon \ This instrument was P P Y Street Suite 1900 Charlotte, North Carolina 28246 Brief description for Index: Ecusta Road THIS SPECIAL WARRANTY DEED made this day of e.s 12003, by and between RIPS US, INC., a Delaware corporation ("Debtor"), as Seller and hereinafter called the "Seller", and ECUSTA BUSINESS DEVELOPMENT CENTER, LLC, a North Carolina limited liability company, hereinafter called the "Purchaser". Purchaser's mailing address is: P.O. Box 1119, Pisgah Forest, North Carolina 28768. The terms Seller, Debtor and C-833949v03 17215.00011 00018 000 714 Purchaser as used herein shall include such parties, their heirs, successors, and assigns, and shall include singular, plural, masculine, feminine or neuter as required by context. WITNESSETH: WHEREAS, voluntary chapter 11 petitions under the United States Bankruptcy Code �. d cInc.osta 1 e United fate Bankruptcy Court were sled the Debtor an RFS Ecusta, In . E in States f by ("Ecusta") P Y.. for the District of Delaware (the "DE Bankruptcy Court") on October 23, 2002; AND WHEREAS, the bankruptcy cases of the Debtor and Ecusta were transferred to the United States Bankruptcy Court for the Western District of North Carolina (the "NC Bankruptcy Court") pursuant to an order entered by the DE Bankruptcy Court on or about March 28, 2003, and such cases are now pending in the NC Bankruptcy Court under case numbers 03-10358 and 03-10360; AND WHEREAS, the Debtor and Ecusta have been authorized to own, operate and possess the propertyof the Debtor and Ecusta as debtors -in -possession by virtue of the provisions of the United States Bankruptcy Code; - - AND WHEREAS, after notices and hearings under the United States Bankruptcy Code, the Debtor has been authorized by an order of George R. Hodges, Bankruptcy Judge for the NC .` Bankruptcy Court to sell the real estate described in this Deed, and all creditors and other parties in interest in this estate have had proper, prior statutory notice of the consummation of the sale of the Realty (defined below), and there has been full compliance by the Debtor with the United ....:.......:... .... . States Bankruptcy Code and the order of the NC Bankruptcy Court entered on July 1, 2003, a true copy of which is attached hereto as Exhibit B, which order of the NC Bankruptcy Court is incorporated herein by this reference. NOW, THEREFORE, in consideration of the premises, and the sum of $174,250.00, the . receipt of which by the Debtor is hereby acknowledged, and pursuant to the order of the NC ;�wjtd+�icf;:uh:x;y. f•M 4;f.ti?�k:.�'+:it.t:; i:a, C-83394903_ 17215.00011 2 04)J-83 000'715 Bankruptcy Court identified above, the Debtor has and by these presents does grant, bargain, sell and convey to the Purchaser all that real estate, including all improvements located thereon, Realty"), and which is which is located in Brevard, Transylvania County, North Carolina, (the " ated into this Deed by this more particularly described on Exhibit A attached to and incorpor reference. This conveyance is made subject to the following: of record, 1, All encumbrances and other matters both of record and not appearing e and clear of the same by virtue of the order except to the extent the Realty is fre of the NC Bankruptcy Court identified above. 2. All unpaid ad valorem taxes, except as otherwise -paid, agreed to be paid or prorated at closing. the Realty, which includes all improvements located on the 3. The condition that is" and without any representation or warranty Realty, is conveyed "as is, where of any kind concerning its physical condition. TO HAVE AND TO HOLD the Realty, and all privileges and appurtenances thereto belonging, to the Purchaser in as full and ample a manner as the Debtor is authorized and Debtor covenants with the Purchaser, in reliance on the rae r of empowered to convey. And the any the NC Bankruptcy Court identified above, that the Debtor has not created or granted has encumbrances or interest which would be adverse to the Purchaser, and the Debtor and done and nothing to impair such title to the Realty as the Debtor received, and the Debtor defend that title against the lawful claims of all persons claiming by, under or through the Debtor, except for the specific exceptions stated above. 000183 000'716 IN WITNESS WHEREOF, the Debtor has caused this instrument to be signed in its corporate name as duly authorized by the order of the NC Bankruptcy Court identified above, the day and year first above written. RFS US, INC. By: ~— � (SEAL) Jim Mc I� ' la , Authorized Agent pursuant to the Order of the Court attached hereto as Exhibit B STATE OF NORTH CAROLINA COUNTY OF MECKLENBURG This 7+1% day of , 2003, personally came before me Jim McMillan, who, being by me duly sworn, s s that he is the duly authorized agent of e J US, INC., a Delaware corporation, pursuant to the Order of the U.S. Bankruptcy Court, entered on July 1, 2003, and that said writing was signed by him, in behalf of said corporation, in accordance with the Order of the U.S. Bankruptcy Court entered on July 1, 2003. And the said Authorized Agent acknowledged the said writing to be the act and deed of said corporation. Notary public OFFICIAL SEAL Hm.ry Puelie Horin rolin� My co eX KU.ELL� [NOT M Commission Expires May 19 2007 The foregoing Certificate of_ is certified to be correct. This instrument and this certificate are duly registered at the date and time and in the Book and Page shown on the first page hereof. ONO 0�— (� �Q�dS�County Register of Deeds C•83394903 17215.00011 4 ............ 000717 EXHIBIT A Those certain lots, parcels, and tracts of land located in Brevard Township, Transylvania County, North Carolina, more particularly described as follows: TRACT 1-1: BEING all of Tract' 1-1 as shown on plat entitled "Boundary Survey Olin Corporation" recorded in Plat Cabinet 2, Slide 370-A the "Plat"), in the Office of the Register of Deeds of Transylvania County, North Carolina (the "Registry") and which is more particularly described as follows, adding a call to separate Tract 1-1 from Tract 1-2 which is shown on the plat recorded in Plat Cabinet 2, Slide 371: Beginning at a concrete monument found (CMF I as shown on the Plat), a comer of the property of Riverside Grocery, now or formerly, as described in Deed Book 243, Page 316 in the Registry and a point on the boundary line of the property of the United States of America (Pisgah National Forest), now or formerly, as described in Deed Book 90, Page 329 in the Henderson County Public Registry; thence S. 52-36-53 E. 154.14 feet to a point; thence N. 16-02-07 E. 195.10 feet to a point; thence N. 16-02-05 E. 50.71 feet to a point; thence S. 73-07-00 E. 207.42 feet to a point; thence S. 20-05-38 W. 50.27 feet to a point; thence S. 23-06-08 W. 252.38 feet to a point; thence S. 69-33-27 E. 143.22 feet to a point; thence S. 69-33-26 E. 38.98 feet to a point; thence S. 84-18-27 E. 177.79 feet to a point; thence N. 80-04-23 E. 234.84 feet to a point; thence S. 79-20-35 E. 139.71 feet to a point; thence S. 62-59-00 E. 350.18 feet to a point; thence S. 63-02-28 E. 189.82 feet to a point; thence S. 61-38-29 E. 230.91 feet to a point; thence N. 41-03-31 E. 94.56 feet to a point; thence N. 41-03-32 E. 80'.44 feet to,.a point; thence S. 66-30-23 E. 12�1,81 feet to a point-, , thence S. 48-20-25 W. 90.00 feet to a point; thence S. 76-20-26 W. 196.70 feet to a point; thence S. 25-49-37 E. 42.27 feet to a point; thenci S. 01-03-51 W. 172.61 feet to a point; thence S. 23-44-43 W. 152.36 feet to a point; thence S. 41-26-13 W. 74.15 feet to a point; thence S. 66-38-12 W. 66.90 feet to a point; thence S. 86-00-12 W. 49.93 feet to a point; thence S. 75-18-15 W. 56.71 feet to a point; thence S. 70-16-15 W. 376.52 feet to a point; thence S. 61-26-03 W. 93.16 feet to a point; thence S. 13-08-11 W. 311.76 feet to a point; thence S. 12-32-40 E. 100.27 feet to a point; thence S. 37-28-46 E. 202.59 feet to a point; thence S. 02-34-52 W. 484.13 feet to a point; thence S. 01-22-52 W. 110.37 feet to a point; thence S. 43-09-10 E. 25.82 feet to a point; thence S. 12-30-08 E. 226.12 feet to a point; thence S. 06-22-10 W. 638.97 feet to a point; thence S. 20-57-52 E. 216.95 feet to a point; thence S. 32-14-50 E. 245.22 feet to a point; thence N. 87-12-06 W. 28.82 feet to a point; thence S. 13-37-37 E. 72.64 feet to a point; thence S. 04-22-30 E. 70.54 feet to a point; thence S. 02-07-32 E. 447.27 feet to a point; thence S. 00-37-27 W. 300.19 feet to a point; thence, a computed closure line, S: 16-01-25 W. 251.17 feet to a point; thence N. 83-59-49 W. 252.51 feet to a point; thence N: 83-59-50 W. 318.42 feet to a point; thence N. 83 ' -59-50 W. 61.29 feet to a point; thence N. 83-59-50 W. 284.12 feet to a point; thence N. 83-59-49 W. 75.88 feet to a point; thence N. 83-59-50 W. 82.69 feet to a point; thence N. 83-59-50 W. 463.41 feet to a point; thence N. 83-59-50 W. 35.29 feet to a point; thence N. 06-08-09 E. 80.00 feet to a point; thence N. 83-51-50 W. 500.00 feet to a point; thence S. 33-51-49 E. 125.00 feet to a point; thence S. *08-47-07 W. 50.80 feet to a point; thence S. 32-36-20 E. 10.85 feet to a point; thence S. 06-35-04 C-83394903 17215.00011 5 Q'J00183 W. 27.37 feet to fpdh kh'e e S. 06-35-12 W. 805.53 feet to a point; thence N. 83-32- 48 W. 787.90 feet to a point; thence N. 11-29-12 E. 1338.80 feet to a point; thence N. 11= 29-14 E. 30.00 feet to a point; thence S. 81-24-49 E. 346.10 feet to a point; thence N. 06- 39-37 W. 364.31 feet to a point; thence N. 81-30-51 W. 30.00 feet to a point; thence N. _ 81-30-48 W. 629.99 feet to a point; thence N. 03-01-00 E. 313.63 feet to a point; thence S. 81-36-31 E. 37.37 feet to a point; thence S. 81-36-31 E. 2.08 feet to a point; thence N. 0540-18 E. 150.59 feet to a point; thence S. 81-30-08 E. 600.08 feet to a point; thence S. 81-30-10 E. 31.18 feet to a point; thence N. 07-06-24 E. 387.26 feet to a point; thence N. 85-32-03 W. 33.00 feet to apoint; thence N. 07-17-25 E. 270.60 feet to a point; thence N. 80-58-48 W. 15.42 feet to a point; thence S. 05-48-54 W. 88.01 feet to a point; thence N. 79-11-16 W. 127.49 feet to a point; thence N. 11-22-48 E. 83.96 feet to a point; thence N. 80-58-39 W. 315.53 feet to a point; thence N. 06-53-22 E. 658.19 feet to a point; thence N. 06-53-24 E. 34.81 feet to a point; thence N. 38-44-59 W. 400.00 feet to a point; thence N. 58-59-59 W. 100.00 feet to a point; thence N. 38-30-00 W. 210.00 feet to a point; thence N. 24-59-59 W. 150.00 feet to a point; thence N. 35-44-59 W. 71.50 feet to a point; thence N. 35-45-04 W. 28.50 feet to a point; thence N. 50-48-46 E. 235.52 feet to a point; thence N. 42-48-46 E. 652.06 feet to a point; thence N. 49-06-01 W. 25.02 feet to a point; thence N. 49-06-04 W. 1029.86 feet to a point; thence S. 84-26-02 E. 1069.51 feet to a U.S. Forest Aluminum Monument Found (140 on the Plat); thence N. 08-00-43 E. 417.01 feet to a concrete monument found, the point and place of BEGINNING. SAVE AND EXCEPT 1-9, INCLUSIVE: 1. BEING all of Exception 1 Cantrell Lot as shown on plat entitled "Boundary Survey Olin Corporation" recorded in Plat Cabinet 2, Slide 370-A, in the Office of the Register of Deeds of Transylvania County, North Carolina, as more particularly shown on survey dated June 28, 2001, last revised August 3, 2001, prepared by Freeland — Clinkscales & Associates, Inc. of NC as drawing number h21126c; -=- 2. BEING all of Olin Employees Credit Union — Exception 2 Lot as shown on plat entitled "Boundary Survey Olin Corporation" recorded in Plat Cabinet 2, Slide 370-A, in the Office of the Register of Deeds of Transylvania County, North Carolina, as more particularly shown on survey dated June 28, 2001, last revised August 3, 2001, prepared by Freeland — Clinkscales & Associates, Inc. of NC as drawing number h21126c; 3. BEING all of Siniard — Exception 3 Lot as shown on plat entitled "Boundary Survey Olin Corporation' recorded in Plat Cabinet 2, Slide 370-A, in the Office of the Register of Deeds of Transylvania County, North Carolina, as more particularly shown on survey dated June 28, 2001, last revised August 3, 2001, prepared by Freeland - Clinkscales & Associates, Inc. of NC as drawing number h21126c; 4. BEING a 1.21 acre portion of Lot 1-B as shown on plat entitled "Boundary Survey Olin Corporation" recorded in Plat Cabinet 2, Slide 370-A, in the Office of the Register of Deeds of Transylvania County, North Carolina, as described in a deed dated October 26, 1994, from P. H..Glatfelter Company to Pisgah Forest Speedway, Inc., recorded in Book 381, Page 731, in the Office of the Register of Deeds of Transylvania County, North Carolina, as more particularly shown on survey dated June 28, 2001, last revised August 3, 2001, prepared by Freeland — Clinkscales &Associates, Inc. of NC as drawing `,:;�,,;,,,;,r,i,:}:;�•;,,,}.,.,,•,,;,::,;,,.t ;;, number h21126c. sN: r;; <:�::,:,,:r:s.1:t: , ;r:.�•;;' C-83394943_ 17215.00011 6 1 f 0001.93 0 0 1-jr, 1 .....:.:.:.... ,.:...:: 5. BEING that portion of Tract 1-1 located on the south side of U.S. Hwy 64-276 and on the west side of Ecusta Road (S. R. 1512) (formerly Vanderbilt Road) at the intersection of U.S. Hwy 64-276 and Ecusta Road (formerly Vanderbilt Road) and being identified as Lot 1-N and Lot 1-M of Tract 1-1 as per plat thereof entitled "Boundary Survey of Olin Corporation" recorded in Plat Cabinet 2, Slide 370-A in the Office of the Register of Deeds of Transylvania County, North Carolina, and being more particularly shown on survey dated June 28, 2001, last revised August 3, 2001, prepared by Freeland — Clinkscales & Associates, Inc. of NC as drawing number h21126c. 6. BEING all of that certain 20.49 acre portion of Tract 1-1 which is located on the southwest.side of Ecusta Road (S.R. 1512) (formerly Vanderbilt Road) and described as all of Lot 1-J as shown on plat entitled "Boundary Survey Olin Corporation" recorded in Plat Cabinet 2, Slide 370-A, in the Office of the Register of Deeds of Transylvania County, North Carolina, which is bounded on the northwest side by the centerline of Ecusta Road (formerly Vanderbilt Road) all as more particularly shown on that certain survey dated June 28, 2001, last revised August 3, 2001, prepared by Freeland. — Clinkscales & Associates, Inc. of NC as drawing number h21126c. 7. BEING all of that certain 6.43 acres portion of Tract 1-1 located on the west side of Ecusta Road and described as all of Lot 1-K as shown on plat entitled "Boundary Survey Olin Corporation" recorded in Plat Cabinet 2, Slide 370-A, in the Office of the Register of Deeds of Transylvania County, North Carolina, which is bounded on the east side by 1 the centerline of Ecusta Road (S.R. 1512) (formerly Vanderbilt Road) as more particularly shown on that certain survey dated June 28, 2001, last revised August 3, 2001, prepared by Freeland — Clinkscales & Associates, Inc. of NC as drawing number h21126c. 8. BEING all of that 13.00 acre tract, known as the "Comer Lot," per survey by Freeland- Clinkscales & Assoc., Inc. of North Carolina, dated June 2, 2001, as drawing number H21126d and more particularly described as: all that piece or tract of land lying on the eastern margin of Ecusta Road (S.R. 1512) (formerly Vanderbilt Road), a sixty (60) foot public right-of-way and the southern margin of U.S. Hwy. 64-276, a one hundred fifty partially within the City of Brevard, Transylvania County, (150) foot public right-of-way, p Y Y :Ott <'. :><;::::;;s:::;:c.;:; North Carolina, beginning at an iron pin located at an intersection of the right of way of Ecusta Road and U.S. Hwy. 64-276, standing N78-22-49E for a distance of 118.24 feet from the most northern iron pin on Cantrell property; thence with southern margin of U.S. Hwy. 64-276 for two (2) courses to -wit: N15-49-37E for a distance of 125.26 feet to an iron pin; thence N45-34-51E for a distance of 222.75 feet to an iron pin; thence leaving U.S. Hwy. 64-276 and running three (3) new calls with property of P. H. Glatfelter (Ecusta Division) N72-50-21E for a distance of 60.14 feet to an iron pin; / thence S34-51-12E for a distance of 1118.78 feet passing through an iron pin at 1038.78 feet to an iron pin; thence S71-13-51 W for a distance of 100.00 feet to an iron pin; thence N65-40-35W for a distance of 112.52 feet to an iron pin; thence S71-13-51W for a distance of 714.38 feet to an iron pin on the eastern margin of Ecusta Road (S.R. 1512); thence with Ecusta Road for two (2) courses to -wit: a curve to the left with a chord bearing of NO1-01-OSE for a distance of 45.64 feet (R=4120.12; L=45.64') to a point; thence NO1-14-53W for a distance of 794.16 feet to the Point of Beginning, CONTAINING 13.00 acres more or less."' <y < ?' i> ' `°+:•r:i> C-833949v03_ 17215.00011 7 ' 000,720 9. BEING all of that certain 10.13 acre tract known as "Happy Hollow," per survey dated June 2, 2001, by Freeland-Clinkscales & Assoc., Inc. of North Carolina, as drawing number H21126d and more particularly described as: all that piece or parcel of land lying on the Northern boundary of U.S. Hwy. 64-276 in the City of Brevard, Transylvania County, North Carolina, beginning at an iron pin on the eastern boundary of the U.S. Forest Service, standing S08-01-05W for a distance of 199.50 feet from a U.S.F.S. concrete monument on the northern side of the Davidson River, also S08-01- 05W, 143.91 feet from an iron pin on the northern bank of the Davidson River, and running with the property of P. H. Glatfelter Co. and somewhat parallel with the Davidson River S57-09-42E for a distance of 348.65 feet to an iron pin on the northern margin of U.S. Hwy. 64-276, a one hundred fifty (150) foot public right-of-way; thence with highway S45-34-5 I W for a distance of 852.71 feet to a concrete monument; thence leaving U.S. Hwy. 64-276 and running with property of Tinsley, as described by instrument recorded in Book 115, Page 310, N49-06-04W for a distance of 1029.99 feet more or less to a called for concrete monument at the property of the U.S. Forest Service; thence with U.S. Forest Service for two (2) courses to -wit: S84-26-02E for a distance of 1069.36 feet to a U.S. Forest Service monument; thence N08-01-05E for a distance of 217.36 feet to the Point of Beginning. Containing 10.13 acres more or less. LESS AND EXCEPT all that 39.44 acre tract or parcel of land located in Transylvania County, North Carolina, shown as Lot 2 on that Special Subdivision plat entitled "Record Map of Lots 1 & 2 (Parcel I -A)," prepared by Freeland-Cliftkscales & Associates, Inc. of N.C., dated June 24, 2003, and recorded in Plat Cabinet 10 Slide 0 1 in the Transylvania County Public Registry. TOGETHER WITH any rights ' of Grantor set forth in that Agreement between Carr Lumber Company, a North Carolina corporation, and Ecusta Paper Corporation, a North Carolina corporation, dated April 19, 1938 and recorded in Book 73, at.Page 52 in the Transylvania County Public Registry, and amended by Agreement between Carr Lumber Company, a North Carolina corporation, and Ecusta Paper Corporation, a North Carolina corporation, dated May 27, 1938 and recorded in Book 73, at Page 72 in the Transylvania County Public Registry. TRACT 2: BEING all of Lots 2A, 2B, 2C, 2D, 2E, and 2F as shown on plat entitled "Boundary Survey Olin Corporation" recorded in Plat Cabinet 2, Slide 371 -A, the same constituting all of Tract 2, as per such recorded plat, in the Office of the Register of Deeds of Transylvania County, North Carolina, and the same being shown on that certain survey dated June 28, 2001, last revised August 3, 2001, prepared by Freeland — Clinkscales & Associates, Inc. of NC as drawing number h21126c. TOGETHER WITH any rights of Grantor set forth in that Deed from Carr Lumber Company, a North Carolina corporation, to Buchan Lumber Company, Inc., a North Carolina corporation, dated September 29, 1958 and recorded in Book 122, at Page 201 in the Transylvania County Public Registry. C-833949v03_ 17215.00011 8 000721 TRACT 3: BEING all of Lots 3A, 313 and 3C as shown on plat entitled "Boundary Survey Olin Corporation" recorded in Plat Cabinet 2, Slide 371-A, the same constituting all of Tract 3, as per such recorded plat, in the Office of the Register of Deeds of Transylvania County, North Carolina, and as shown on that certain survey dated June 28, 2001, last revised August 3, 2001, prepared by Freeland - Clinkscales & Associates, Inc. of NC as drawing number h21126c. TRACT 4• is BEING all of Tract 4, as shown on plat entitled `Boundary Survey Olin Corporation" recorded in Plat Cabinet 2, Slide 371-A, in the Office of the Register of Deeds of Transylvania County, North Carolina, and as shown on survey dated July 28, 2001, prepared by Freeland - Clinkscales & Associates, Inc. of NC as drawing number h21126c. TRACT 5: BEING all of Lots 5A and 5B as shown on plat entitled "Boundary Survey Olin Corporation" recorded in Plat Cabinet 2, Slide 371-A, the same constituting all of Tract 5 as per such plat, in the Office of the Register of Deeds of Transylvania County, North Carolina, and as shown on survey dated July 28, 2001, prepared by Freeland - Clinkscales & Associates, Inc. of NC as drawing number h21126c. TRACT 6: BEING all of Lots 6A, 613, 6C, 61), 6E, 6F, 6G, 6H, 6J, 6K, and 6L as shown on plat entitled "Boundary Survey Olin Corporation" recorded in Plat Cabinet 2, Slide 371-A, the same constituting all of Tract 6 as per such plat, in the Office of the Register of Deeds of Transylvania County, North Carolina, and as shown on survey dated June 28, 2001, last revised August 3, 2001, prepared by Freeland - Clinkscales & Associates, Inc. of NC as drawing number h21126c. TRACT 7: BEING all of Tract 7, as shown on plat entitled "Boundary Survey Olin Corporationrecorded in Plat Cabinet 2, Slide 371-A, in the Office of the Register of Deeds of Transylvania County, North Carolina, and as shown on survey dated June 28, 2001, last revised August 3, 2001, prepared by Freeland - Clinkscales & Associates, Inc. of NC as drawing number h21126c. TRACTS: BEING all of Tract 8, as shown on plat entitled "Boundary Survey Olin Corporation" recorded in Plat Cabinet 2, Slide 370-A, in the Office of the Register of Deeds of Transylvania County, North Carolina, and as shown on survey dated June 28, 2001, last revised August 3, 2001, prepared by Freeland - Clinkscales & Associates, Inc. of NC as drawing number h21126c. TRACT 9 (PARKING LOT TRACT): Notwithstanding that the land described below is part of the land excepted as Item 5 above from the description identified as Tract 1-1 above, the land described below is intended to be N:� i:l�l<T .:: •.• �.:.•. . .;'•fill :. conveyed. %:;::rt•.:s•`'%1'.1?;..>° C-833949v03_ 17215.000II 9 ,. is � t.^ k. C— 0018 3 000722 BEING all of that certain n 99 acre tract of particularly described as follows: d located inBevard Tovnnship, Transylvania County, North Carolina, ao t comer of the eing the tern MOS BEGINNING at a concrete Credit Union, ither now or formerly, asdesc bed in Deed Book property of Ecusta Employees and located in the eastern margin of the 266, Page 81, of the Transylvania6(o e my Regisifty, (150) foot public right-of-way), the point right -of --way of U.S. Hwy and place of BEGINNING; thence from the point of BEGINNING with the soufib d l wes ern custa Employees Credit Union, either now or formerly, des boundary of the property of EsSouth by instrument recorded in Deed 266, Page 81, of the Transylvania County Registry, 27° 00' 15" East 209.93 feet to concreteeither now or formerly, a described by instrument boundary; thence with the southern recorded n the property of Richard Jennings, the following five (5) calls: (i) South Book 389, Page 6, of the Transylvania County Registry to 26' 47' 16" East 93.27 feet to an iron pin; (ii) thence with a curveadnhs of 210100 fee and e left with a chord bearing arc and -distance of South 56° 28' 01" East 206.47 feet and having ( ) and (v) thence with a curve to the left length of 215.85 feet to a railroad spike; IIl South 85° 51' l9" Eat 418.80 feet to an iron pin; (iv) South 85' 51' 19" Eat 206.85 feet to an iron pin;feet ` having a chord bearinfeet to andistance on pin, such iron pin being located in the western f North 48* 28' 19" East 35.06 feet and a radius ofmargin and an arc length of 38.85 of the right -of --way of Ec nRo n ce hShRWe tern 12) moargnlof the right -of y Vanderbilt rm way) of Ecusta Road the foot public right-of-way; following two (2) calls: (i) South OS° 41' 28" West 1123.22 feet to a concrete monument four and (ii) South 05° 51' 47" West 87.75 feet to an iron pin; thence as described Y with hithe bound eies ofd hn te property of Gary D. Adcock, either now or formerly, of C. W. Ramer, either now or Book 231, Page 35, and Book 264, Page 126, and the property ty formerly, as North by instrument 9' 29" West 127.48 feet to ain Book concre ePage 94, of the monument found; thencecontinuingl Registry, North with the boundary of C. W. Ramer North I 23' 58" East 83.99 feet. to a concrete monument found; thence with the property of C. W. Ramer and the property of Charles Carr, either now or age 647, of the Transylvania formerly, as described by instrument recorded d Book her w County Registry, and the property of Charles Hudgins, either now or formerly, as described by s 52 instrument recorded , Bo ok 110, Page 107, of the Transylvania County Registry, and2 otf the through 55, inclusive, of the Vernon 1orth 8� 59' S18° Subdivision,as sshown in 315.56 feetat t Book one ete monument Transylvania County Registry, of ls found; thence with the eastern of Lots 63 throug d Lot 14 of he Hillside Heights Subdivision, as shown in Plat Vernon Book12, Subdivision, and Lot 13 Page 46, and the property Deed Book 219, Page 770, fof C. W. Rainer�the Transylvaniaeither now or County Registry North 06 instrument53' 22" recorded in at 659.42 Eat 693.23 feet to an iron pin and passing a concrete monument foundethe Ramer et; thence with the Ramer Property North 38° 44' S9" West 400 feet to an iron pin; thence with Property North 58° 59' 59" West 100 feet to an iron pin; thence with the Ramer Property and the r formerly, as described by instrument recorded in property of Bedford50 ofWatson, Transylvania Countyegistry North 39' 30' 00" West 210 feet to an Book 256, Page 7 iron pine 1yen described with the Bedford W by in trumaent tson recorded in B ok146, Page 82, of Property and property of Harrison the Transylvan a or form ,as County Registry, North 24° 59 59 West 150 feet to an iron pin; thence with the Harrison ueen Property North 35 4 5"00" West171.50 feet to a concrete monument found, such of concrete monument being located in the southeastern margin of the one hundred fifty (150 public �;:,��• t;.:yiS:,l:rt!!;t!gh��.t!'1!:.';!w!�i3�rd:i:Ntc� 'S�..; C-833949vO3_ 17215.00011 10 C-833949v03_ 17215.00011 1 1 600183 ()00724 EXHIBIT B UNITED STATES BANKRUPTCY COURT F i WESTERN DISTRICT OF NORTH CAROLINA. 4%, ASHEVILLE DIVISION i ^ oi" Chapter 11 ear In re: RFS ECUSTA INC. and RFS US INC., Case No.: 03-10360 Cime:No-.: 03-10358 a0slsff Eff-'ILM ON- JUL 12003 Debtors. Jointly Administered S=.0RDER.AUTH0.RIZINPSALE 'OF SUBSTANTIALLY ALL .T.HE OF THE -DEBTORS': . AS . SETS FREE A:ND'CLEAR OYALL LIENS; ' CLAIMS, -0 OTHER INTERESTS AND EXEMPT FROM STAMP ENCUMBRANCES, AN. OR SE&LAR TAXES; AND THE CONSUNEN1 ON OF ALL.TRANSACTibNs RELATED THERET6.f: PURSUANVTO-BAINKRUPTCY CODE SECTIONS 105,-363, A . ND I 146AND BANi4tTT 6Y4dtS'2002i 604, AND 6006 The above. -captioned '.debtors and debtors -in -possession. (collectively; the "Debtors"), havingfiled their fourth motion, dated June. 3, 2003 '(the. "Bulk Sale Motion�% pursuant to §§ 7' 105 and 363 of I Title 11 of the United States Code .(the '.B ankruptcy' Code!') for an order authorizing the sale of substantially 01 of the Debtors' remaining *assets to New Tech Environmental, Inc, or an entity to be formed by or an affiliate ofNew Tech Environmental, Inc. .4 that is assigned the rights of and assumes theobligationsofNew Tech Environmental, Inc. under. the Transaction Documents'(as hereafter defined): (the "Purchaser"), free and. blear of all . I liens, claims,' encumbrances, and other interests, authorizing the Debtors to consummate all transactions related to the above, and granting such other relief as is fair and equitable; and due and proper notice of the Bulk Sale Motion having been given; and all responses to the Bulk Sale Motion having been withdrawn, resolved, or overruled; and after due deliberation and sufficient cause appearing therefor, C-928193vO5_ IPMS.Mll q00 r25 IT IS -HEREBY FOUND AND DETERMEIED THAT; to hear and determine the Bulk Sale Motion and all A. This Court has jurisdiction §§ 1334 and 157. Venue of this proceeding in this district related matters pursuant to 28 U.S.C. § The Bulk Sale Motion constitutes a core proceeding is proper pursuant to 28 U.S.C. 1409. pursuant to.28 U.S.C. § 157(b)(2)(A), (B). (� and (0) B. Proper, timely, adequate and sufficient notice of the Bulk Sale Motion and the sale of the Assets (as hereafter defined) was provided pursuant to Bankruptcy Rules 2002, 6004, and 6006, and previous •orders of this Court,. and such notice was reasonable, sufficient and sented. No other or Airth6r. notice of the Bulk appropriate under the circumstances PreSale. er is necessary.: Motion or the entry-ofthis OrdA reasonable opportunity to object, respond, or to otherwise be heard: regarding .the relief requested in the Bulk Sale Motion has been afforded to all interested.parties: - C. The Debtors.;are the.sole and.•aawful.owners.of all the Assets, and the Assets. pending the consummation of the sale, hf;r ' er, constitute 'property of the Debtors' estates pursuant to § O% t Code: . 541 a of the B.ankrup cY • to: 1 D. The Debtors have determined 411.the exelcise of their business judgment, () >• title, and .interest n iand to the Assets upon the terms sell all of their right and conditions set :.:.. afe all transactions contemplated herein and in the Transaction forth herein; and (ii)consumm sixth decretal paragraphs below). Documents (subject to the provisions in the fourth through tc Code E. The provisions. of §§ 363(b), 363(f), 363(m), and 363(0) of the Bankruptcy have been complied with and are applicable as to the Assets. in (i). have full corporate power and authority F. The Debtors, as debtors possession, and all other documents contemplated by the Bulk Sale to execute the Transaction Document's n.R2R193v05 17215.00011 000183 000'726 i Motion with regard to the Assets, (ii) have all of the corporate power and authority necessary to consummate the transactions contemplated by the Bulk Sale Motion with regard to the Assets and the Transaction Documents, and (iii) have taken all corporate action necessary to authorize and approve the sale described in the Bulk Sale Motion and the consummation by the Debtors of the transactions contemplated thereby. G. The Debtors have demonstrated sound business justifications for the sale in accordance with the Bulk Sale Motion and the Letter Agreement (as defined below) and the other transactions and actions contemplated. by the Bulk Sale Motion,with.regard'to the Assets pursuant to. §.363(b) of the Bankruptcy .Code; outside of a. plan of reorganization, and it is a reasonable exercise of the.Debtors' business juQment to execute, deliver and consummate the Transaction Documents. with the Buyer :and consummate. the transactions contemplated by the Transaction Documents. H. Consummation of the; sale. of the .Assets: as contemplated herein and in. the Transaction Documents is in ;the best interests of the Debtors, their estates, creditors, equity security holders, and other parties in.interest. . I. The sale of the .Assets is properly authoriz6d:under all applicable provisions:of the Bankruptcy Code, including withoui limitation: §§ 105, 363, and 1146 of the Bankruptcy Code. J. The sale of. the Assets contemplated 'herein represents the highest or otherwise best offers received for the Assets following the conduct of an open and complete sale process (including a public auction) reasonably calculated to yield the highest or. otherwise best offers for the Assets. K.• The consideration provided by the Purchaser for the Assets (i) is fair and reasonable, (ii) constitutes reasonably equivalent value, reasonable market value and fair G822193v05_ 1720.00011 3 000183 000 72'7 . consideration for the Assets under the Bankruptcy Code and under the laws of the United States, any state, territory, possession or the District of Columbia, (iii) is the highest or otherwise best offer for the Assets and (iv) will provide a greater recovery for the Debtors' creditors and other interested parties than would be provided.by any other practically available alternative. L. The transfer of the Assets to the Purchaser under the Transaction Documents will be a legal, valid, and.effective transfer of the Assets and will, upon the.occurrence of -the Closing (as hereafter defined), vest in the Purchaser all right, title and interest .of the Debtors in the Assets free and clear of -all liens, claims, encumbrances, and other interests, including, without limitation, mortgages,: security interests, pledges, liens, ceplaceinent liens, judgments, demands, encumbrances; or'charges of any kind or.nature,'.;if'any, including, but not limited to, any restriction on. -the transfer, receipt of income or othei` exercise. of any attributes of ownership (collectively, "Liens'), and all debts arising in -,any way. in connection with any. acts of the - Debtors, claims (including but not limited to "claims'•. 'as.that term is defined in the Bankruptcy - Code), obligations, demands, guaranties, interests,.and matters of any kind and nature, whether arising prior to or subsequent to the commencement, of these Chapter 11 cases, and whether imposed by agreement, understanding, law, equity, or otherwise, including, but not limited to, n an way relating to the out of in connection with, or t y . y g those relating to taxes arising under or , operation of the Debtors' businesses prior to Closing (collectively, "Claims"), with all such Liens and Claims, and any and all other interests to attach to the net proceeds of sale (the "Sale Proceeds") of, and with the same force, effect and priority as such Liens, Claims and other interests had against, the Assets, and ' holders thereof shall be permanently enjoined from - - asserting such against the Assets and the Purchaser and shall look solely to the Sale Proceeds. . . „' :�s' 4. .to-•: �:: . {F • in-e ,�; :;�. ••,::i;I::i,:,;x:�:::,:;,.,:. c sast9s,,os_ rms.000tt 4 WX X. .. .............. .......... 000,728 M. As a condition to purchasing the Assets, the Purchaser requires that the Assets be sold free and clear of all Liens, Claims and other interests and that it shall have no liability whatsoever for any. obligations of or Clalffis against the Debtors, except as may be expressly permitted in the. Transaction Documents. The Purchaser would not enter into the Transaction Documents and consummate the transactions contemplated by the Bulk Sale motion, thus X .0 adversely affecting the Debtors, their estates, and their creditors, if the sale of the Assets to the Purchaser was not -free and clear of all Liens, Clairfis and other interests of any kind or nature whatsoever, or if the Purchaser would, or in the fat6re could, be liable for any such Liens or Claims and if the transfer of the Ass - ets 6ould:not be -.made under § 363 of the Bankruptcy Code. - N. The transfer -of the Assets 'to -the Pufchaser free and clear of all Liens, Claims and other interests will not result in_ any undue, burden, or prejudice to any holders of any Liens; Claims or other interests since all' . such Li6ns'.a'nd C-laims:of any kind or nature whatsoever shall attach to the Sale' Proceeds in the .order 'of their priority, With the same validity, force and effect which. they now have as against the. Assets, subject to- any claims and. defenses the Debtors or ay possess with respect thereto. other parties may 0.- The . Letter Agreement was . negotiated, proposed and agreed to by the Debtors and 'es thereto without collusion, -in. good - faith; and from arm's-length the Nrchaser as parties bargaining* positions. The Debtors and the Purchaser have at all times acted in good faith and in accordance with applicable law. The Purchaser is a good faith: purchaser for value with respect to the Assets under § 363(m) of the Bankruptcy. Code and will be acting in good faith pursuant to § 363(m) of the Bankruptcy Code in closing the transaction. contemplated by the Bulk Sale Motion 'and the Transaction Documents in accordance therewith. By reason of the foregoing, upon Closing, the Pu . r6haser will I be entitled to all of the protections afforded under § 363(m). R. C-929193v05 17215.00011 5 000183 000'729 ` Neither the Debtors nor the Purchaser has engaged in any conduct that would cause or permit the Transaction Documents to be voided under § 363(n) of the Bankruptcy Code. The sale of the Assets approved by this Order is not subject to avoidance pursuant to § 363(n) of the Bankruptcy Code, and the :consideration provided by the Purchaser for the Assets under the Transaction Documents (including, upon its execution, the Asset Purchase Agreement) shall be deemed to constitute reasonably equivalent value and fair consideration. P. Other than with respect to the Assumed Liabilities (as defined below), the Purchaser shall ;not by virtue of this Order or. the Transaction Documents or the transactions contemplated hereunder or thereunder, be deemed to have "successor" liability or responsibility for claims against or obligations of Debtors. arising prior to .or as a result. of the purchase and sale of the -Assets hereunder. Q. The sale of the .Assets'to the Purchaser. will maximize the value of the Debtors' ; estates and is in contemplation of the implementation of,•a plan of liquidation and necessary to the confirmation and consummation -of any .such plan.. Accordingly, the sale of the Assets shall be deemed a sale "under;a plan" within the •meaning.of § 1146(c), of the Bankruptcy Code and shall be exempt from any and all. stamp taxes, recording taxes., and similar.taxes, including without limitation any real estate transfer tax and any realty property transfer tax, although such ;,;_;:;:;•. sales do not constitute a sub rosa plan.of reorganization. The Asset Purchase Agreement is not a sub rosa Chapter 11 plan for which approval has been sought without the protections that a disclosure statement would afford and is not in violation of creditors', and equity security interest holders' voting rights. k The relief requested in .this Bulk Sale Motion is reasonable and in the best interests of the Debtors' estates and creditors. c-8:8193va5_ 17215.00DII 6 4 00018.3 000'730 �iOW, .THEREFORE,.IT IS HEREBY: ORDERED. that the Bulk Sale Motion is granted; and it is further ORDERED that all responses to the Bulk Sale lviotion have been withdrawn or otherwise resolved, or are hereby overruled; and it is further ORDERED that the letter -agreement (the "Letter Agreement!'), to be entered into by and aser, and the Debtors' secured lender in these cases (the "Lender"), among the Debtors, the Purch a substantially complete draft of which was attached to the Bulk Sale Motion as exhibit A, is hereby. approved; and it is further ORDERED that the Debtors are authorized to negotiate and execute an asset purchase Agreement;'; and• together with the. T:etter Agreement, the agreement (the "Asset Purchase. "Transaction Documents,,): with'the Purchaser setting forth the definitive.terms of this sale, subject only to the prior written consent of the Lender. and the official committee of unsecured - - creditors (the •"Committee"), to the : form and substance thereof', provided however that the Debtors shall provide the union'representing the Debtors' former hourly employees ("PACE") and the Bankruptcy Administrator for the Western District- of North •Carolina (the "Bankruptcy Administrator") notice and three. business. days' opportunity to:object to the form of the Asset Purchase Agreement prior to its execution;- and it is further ORDERED that if the Debtors and the Purchaser negotiate and execute an Asset if the Committee and the Lender expressly consent in writing to such Purchase Agreement, and Asset Purchase Agreement prior to its execution, and if PACE and the Bankruptcy Administrator do not timely file an objection to such Asset Purchase Agreement prior to its execution, then the Asset Purchase Agreement is hereby deemed to be approved as of its execution; and will be `y% ?F,t�i'ii�•r,.•'.,kh, f+:C;`.t,i�,;; •;{i!r':i�•.,•; ;y'.;;ii>. 000183 000131 effective and binding on all parties upon execution thereof without further order of this Court; and it is further ORDERED that in the event that'the Debtors, the Purchaser, the Committee, and the Lender do not agree on the form and substance of an Asset Purchase Agreement, or PACE or the Bankruptcy Administrator timely.files an objection to such Asset -Purchase Agreement prior to the execution thereof, this Court will schedule and conduct an expedited hearing thereon at the earliest date available on the C.ourt's calendar; and it is further ORDERED that all of the terms, .conditions, actions, rights, remedies, and obligations contained in each and 'any, of the Transactioo Documents .(including', upon its execution, the Asset Purchase Agreemeni),:including but'not.limited to the funding obligations 'related to the Debtors' operations, the .sale .of .certain of the Debtors' assets, the use of cash collateral, and the access to the Debtors' facilities, .is hereby approved and is binding on all parties thereto; and it is further . ORDERED that Tim McMillan. is hereby. authorizedto execute on behalf of the Debtors the Transaction Documents and all.: other .documents necessary to consummate the transaction jauthorized in this Order; and. it is further ORDERED that so long as he acts in accordance with the terms of this Order and in the absence -of gross negligence or wilfull misconduct, Jim McMillan (a) shall not be subject to any personal liability for any: claims arising from his participation in the consummation of the transaction authorized in this Order,.(b)'is.hereby released by the Debtors,.TBCC, the Committee and the Purchaser from any such liability; and (c) no party may make a claim against Tim McMillan for any act or omission arising in connection with his participation in the consummation of the transaction authorized in this Order, and it is further C-826193v05_ 17215.00011 a00I-83 000732 ORDERED that within one business day of the entry of this Order, the Purchaser shall pay $50,000 as a good faith deposit (the "Deposit"), such Deposit to be treated in accordance with Paragraph 6 of the LetterAgreement; and it is further ORDERED that to the extent the Purchaser identifies one or more of the Debtors' " be purchased and assigned e to " eas s. L P and/or unexpired leases (the ) executory contracts pursuant to the Transaction Documents (including, upon .its execution, the Asset Purchase Agreement) and hereto; the -Debtors shall .promptlyfile- a motion pursuant to § 365 of the BanlQuptcy Code for authority to assume such Leases anal assign them to the Purchaser, and the Purchaser will be'responsible for allcure'costs associated therewith; and it is further ORDERED that on or before the closing of the sale .(the "Closing"), the Purchaser shall to the Debtors in cash, certified'check wire transfer, or other immediately available funds pay. _ acceptable to the Debtors, the Purchase Price (as defined iielow);.and it is further _ ORDERED that the Debtors. are. authorized to sell to the Purchaser all of the Debtors' assets, except for tfiose assets specifically identified in the Transaction Documents as remaining therefrom, "AS IS; W=RE IS," -without recourse and without any representations or excluded warranties (except as may be set forth in this Order or the Transaction Documents), for the price +� ect to'a potential Purchase Price reduction not to (the "Purchase Price"). of $1.3* million, sub p k `° »;`<i>.` ` exceed $50,000, as identified in the Transaction Documents, and to consummate the transactions contemplated in the Transaction Documents.(including, upon its execution, the Asset Purchase Agreement) with the proceeds to bepaid by Purchaser at Closing to be deposited into the Debtors' Account No. 001952624378 at First Citizens Flank; and it is further ORDERED that the Debtors are, without any further corporate authorization, authorized to execute and deliver, and empowered to perform under, consummate and implement, the C-82819305 15215.00011 9 000183 I Transaction Documents (including, upon its execution, the Asset Purchase Agreement), together with all, additional instruments and documents that may be reasonably necessary or desirable to implement the Transaction Documents (including, upon its execution, the Asset Purchase Agreement), . and to take all further actions as may be necessary for the purpose of assigning, transfemng, granting, conveying and conferring to the Purchaser or reducing to the Purchaser's possession, the Assets, 'or as may.be necessary or appropriate to the performance of the obligations as contemplated by the Transaction Documents (including, upon its execution, the Asset Purchase Agreement); and it is. further.. ORDERED that except -as expressly set forth in the Bulk Sale Motion, the Transaction ' • ' Documents (including, upon. its execution, the Asset Purchase Agreement) or this Order, the . Purchaser assumes noemployee liabilities •that'arose prior to Closing,. including any accrued but unbilled liabilities; and it is further ORDERED that the transfer of the Assets to the -Pure iaser.pursuant to, and subject'to the terms of the Transaction Documents :(including, upon 'its .execution, the Asset Purchase Agreement) shall constitute a legal, valid and effective transfer of the Assets, and shall, upon the occurrence of the Closing; -vest in the Purchaser.pursuant to § 363(f) of the Bankruptcy Code all right, title and interest of the:.Debt r - • i o s rn and to the a licable Assets to be .. • PP acquired. -by such 1..:.:..•.::.:.,,..;;.::.::•:.::;:;>•::;:;, ::,. Purchaser free and clear of all Liens, Claims and other . interests of any kind or nature whatsoever, with all such Liens, Claims.and other interests to attach to .the Sale Proceeds in the. order of their priority, with the same validity, •force and effect which they now have as against the Assets, subject to the terms of this Order and the.rights, claims, defenses, and objections, if any, of the Debtors and all interested parties with respect to such Liens, Claims, and other interests; and the holders of such Liens, Claims, and other interests shall be permanently Gn ,t<l. , it t �> 2' I Ij�•.< C-S28193v05_ 17:15.00011 10 . 000'733 X.. .. ... .. ...... .. .......... .... ... . .... ...... ... .... .. 000183 oOO734 enjoined from asserting such against the Assets or .the Purchaser and shall look solely to the proceeds of sale; and it is further ORDERED that this Order (a)- shall be effective as a determination that, on the Closing dat6 with respect to any Assets, and subject to the occurrence of the Closing, all Liens, Claims and other interests of any kind or nature whatsoever exist*ing prior to the Closing as to the Assets transferred' on such Closing date pursuant to the Transaction Documents (including but not limited to any claims under any applicable revenue, pemio.n, ERISA, tax, labor, environmental or natural, resource law, rule or re&lati6r4 or any -products liability law) have been' unconditionally released and terminated as to sucb.AsSets, and that. the. conveyances 'described herein have been effected, and.(b) shall be binding uip6n. and shall goverri• the acts of all entities, including without limitation, all filing: agents, gents, filing officers; .title agents, title. companies, recorders of mortgages" -recorders.. of 'deeds; registrars of. administrative -agencies, govemmental departments, secretaries of state, federal, :state, %arid' local officials, and all other persons and -entities who may be required by opetatioft of -law, fhe'dudes of their office, or - contract,to accept, file, register or otherwise record or reldaseany. documents or instruments, or state of title in or to any of the Assets; and it who maybe required to report or insure any title or: is further ORDERED that except as, expressly permitted 'or otherwise specifically provided for in the .Transaction Documents (i . ncluding-, upon its execution, the Asset Purchase Agreement) or this Order in respect of the Transaction Documents -(including, upon its execution, the Asset Purchase Agreement) or the Assets to be transfer -red by. the Debtors, the Purchaser shall have no liability or responsibility for any liability or othd obligation of the Debtors arising under or related to such Assets and, to the extent allowed by law, the Purchaser (and its officers, managers C-928193YM O00183 000?35 and members) shall not be liable for any other claims against the Debtors or any of their r affiliates, liates, and the Purchaser shall have no successor or vicarious liabilities of an predecessors oy unknown as of -the Closing under. the Transaction kind or character whether known or now existing or ' Documents (including,' upon its execution, the Asset Purchase Agreement), Debts or any obligations of ect to the or . ,,•;,,.;,;::,; with hereafter arising, whether fixed or -contingent, resp Closing under the the Debtors, other than the Assumed Liabilities, arising prior to the Transaction Documents . (including, 'upon its execution, the Asset Purchase Agreement), liabilities under any revenue,, pension, ERiSA, tax, labor, including, but not limited to, any . environmental or natural resource law,• 'rule or regulation; or any products Lability law, arising, r in anyway relating to the•operation of accruing, or payable under; out of in connection with, o the Debtors' businesses prior to the Closing; and. it is further. ORDERED that this Courtretains and. shall havf: exclusive jurisdiction to endorse and implement the terms and. provisions of this Order, the Transaction Documents, all amendments s executed in connection thereto, any waivers and consents thereunder, and *each of the. agreement and duties of the..parties hereunder or thereunder or any therewith in: all respects or the rights of the of the foregoing, and to• resolve any. dispute concerning any. . issues relating to any g g,::::::::::::'.<::;•::;::::e<>:;:::<::.::.. 'retaining J urisdidion'to.(a) lnterpret the terms, foregoing, including, 'but' not limited to, , conditions and provisions of any of the foregoing, (b) .compel delivery of the Assets to the specific performance of any act to be performed Purchaser or order the by the Debtors or any mmate the safe,' and (c) compel 'delivery of the Purchase Price or other pity to consu performance of other obligations owed to the Debtors by the Purchaser;, and it is further ORDERED that subject to Closing and consummation of the'transaction, each and every federal, state and local governmental agency, recording office or department and all other parties, 12. C.S29199v05 17215.00011 _ .. . 600183 person or entities is hereby directed to accept this Order for recordation as conclusive evidence of the free and clear, unencumbered transfer of title to the Assets conveyed to the Purchaser; and it is further ORDERED that subject to Closing and consummation of the transaction, the provisions of this Order authorizing the sale of the Assets free and clear of Liens, Claims and interests (with such Liens and Claims to attach'to.the'proceeds of the sale of the Assets as provided in this Order) shall be self-executing, and, neither the Debtors, the Purchaser nor any other party shall be required to execute or file releases, termination statements, assignments, cancellations, consents or other instruments to, effectuate, consummate and/or implement. the provisions •hereof with respect'to the sale;.,12rovide however,; that this Paragraph shall not excuse such.parties from performing any•and.ali of.the respective obligations under the Transaction Documents; and it is .... further ; .. ....: ...• . . ORDERED that if. any person :or entity that has filed financing statements, mortgage, mechanic's liens, lis'pe.ndens, or other documents or agreements evidencing Liens or Claims against or in the Assets shall not. have. delivered to the -Debtors.prior to the Closing date, in proper form for filing 'and executed by the appropriate. parties, releases; termination statements, truments. of satisfaction, or such other instruments to assignments, •cancellations, consents, ins n, Kae!%lief:' effectuate, consummate and/or implement the provisions hereof with respect to the sale with regard to all Liens. and Claims that the person or entity has with respect to the Assets or otherwise, the Debtors or the Purchaser are hereby authorized and directed at Closing to file with any federal, state or local governmental agency, recording office or department and all other parties, persons or entities this -Order as conclusive evidence of the free and clear, unencumbered • .. 4'r',:,%w:'i.i<;?2s '�i1e i::hyL�J�;C� 5i„. c-828193v05_ 172t5.00011 13 • ' r r ®®j-83. 000'73'7 ::.. conveyed to the Purchaser.to effectuate, consummate and/or transfer of title to the Assets of the Assets; and it is furt to the sale her implement the provisions hereof with respect ion Documents (including, upon its that consummation of 'the Transact D ORDERS Agreement). and the transactions contemplated therein and thereby execution, the Asset Purchase Debtor and the Purchaser or result in the do not effect a de facto merger or consol idation of any Purchaser is not the Debtors' business under the Purchaser's control. The continuation of the of :the Debtors, nor is the Purchaser . alter ao oi; a successor in interest to, or a' continuation for in the for the Debtors' debts and obligations, unless specifically provided able otherwise li . Transaction Documents or pursuant to this Order; and it is fiu they .: be, m 'Closing date may. ORDERED that all entities that. are p resently, or on• the ected to surrender Possession of the Assets Assets are hereby dir• possession ofsome or all of the Closing date for .such Assets; and purchaser on the it is fuel date to the or liquidation) plan. of reorganization contained in any ORDERED that.. .nothing• , . :. of confirm?lion confirming any- such plan. shall conflict confirmed in these cases; -or ti .e order (including, upon its derogate from the •provisions: of the Trans' action Documents with or Purchase Agreement)- or the terms of this Order; and it is further execution, the Asset of authorization provided ORDERED that the reversal or modification on appeal the sale of such the sale' of any Assets shall not affect the validity of consummate herein to cons g appeal nor to the is duly stayed pend in such app P Assets to the Purchaser, unless such authorization Closing date with -respect to such Assets; and it is further herein shall in that notwithstanding anything herein' to the contrary, nothing ORDERED right.,;of the Debtors or any successor thereto (including any any Y affect or diminish any way under the of the Purchaser' arising chapter 11 or chapter 7 trustee) with respect to obliga ations 14 G828191v05_ 1'P_35.00011 - . .. 000183 O0o73B Transaction Documents- (including, upon its execution, the Asset Purchase Agreement) or this Order. The terms and provisions of the Transaction Documents (including, upon its execution, the Asset Purchase Agreement) and this Order shall be binding in all respects upon, and shall inure to the benefit of, the Debtors, their estates, and their creditors, the Purchaser and their respective affiliates, successors. and assigns and any affected third parties (including but not limited to, all persons asserting Liens or Claims in the Assets to be sold to the Purchaser), notwithstanding any subsequent appointment of any trustees) under any chapter of the Bankruptcy Code, as to which triistee(s) such'terms and provisions likewise shall be binding; and it is further ORDERED that • in furtherance of the..foregoin&. in the event of the •conversion of the Debtors' cases, any Chapter' 7 .trustee(s) shall. be obligated. to perform under the Transaction Documents (including, upon its execution, the Asset'Purchase Agreement) to permit the Debtors' r estates to realize the full value. of the sale to the Purchaser and to permit the Purchaser to consummate the transactions 'provided •in and. contemplated. -by the Transaction Documents .: (including, upon its execution, the Asset Purchasd-Agreement); and the Transaction Documents (including, upon its execution, the Asset Purchase: Agreement). shall not be executory contracts that such trustee(s) can reject, and the.Purchaser and the Debtors, and their respective successors, ,".:,:',:.:,{,. •-'y.„ .>.; >a shall be entitled to the remedy of specific performance so as to be permitted to consummate the V transactions provided in and contemplated by the Transaction Documents, as permitted under applicable non -bankruptcy law; and it is further ORDERED that the Transaction -Documents (including,. upon its execution, the Asset Purchase' Agreement) and any related agreements, .documents or other instruments may be modified, amended or supplemented by the parties in accordance with the terms thereof, without ... .. ... �ati+.ask{^M�:4�^Sti+Kp;w'd•.d"+�+'.�`:�,.• C-918193vOS_ 1,715.00011 15 ' iv. 000183 0p0739 ks further order of the Court, provided that any such modification, amendment or supplement does not have a material adverse effect on the Debtors' estates and is, if occurring prior to the Closing date, approved by counsel for each of the Debtors, the Purchaser, the Committee and the Lender; and it is further. ORDERED that all of the Debtors' interests in the Assets to be acquired by the Purchaser shall be, as of the Closing date and upon the occurrence of the .Closing, transferred to and vested in the Purchaser. Upon the occurrence of the Closing, this. Order shall be considered and constitute for any and all purposes a full and complete general assignment, conveyance and transfer of the Assets acquired by the Purchaser at such Closing under the Transaction Documents (including, upon its execution, the Asset Purchase Agreement) and/or a bill of sale or assignment transferring .good and marketable; indefeasible title and interest in the Assets acquired by the Purchaser under the Transaction Docurrments. (including, upon its execution, the _ -Asset Purchase Agreement) to the Purchaser; and it is.finther- ORDERED that as of the'Ciosing: date; 'the'Purchaser shall fie -hereby granted immediate and unfettered access to the Assets acquired by the Purchaser; and it is further ORDERED that if the Purchaser fails to pay the Deposit as set forth above, or breaches. any other or further obligation hereunder, under 'the Letter Agreement, or, following its execution, under the Asset Purchase: Agreement, (A) all rights of the Purchaser to the Assets shall be immediately waived and/or. terminated, and'. 03) the Debtors may sell by private sale or public auction, at their discretion, the Assets to another purchaser or purchasers pursuant to the terms and conditions of the Expedited .Sale Order (as defined in the Bulk Sale Motion) or any further or other order of this Court; and -it is further _ .. .- !`.M PI O'I./1C t^.')1 C Ml11 I 1 G {4e�':iti:%.cif..'•:Sl:S;liii>}.t,;,:::l':..:',.i. . • O60183 o 00'740 ORDERED that immediately upon. consummation of the sale, the Purchaser shall assume all liabilities and obligations in and relating to the Assets purchased by it hereunder (except for the Liens, Claims, and other interests that are transferred and released by the terms hereof), and those liabilities explicitly identified in the Transaction,Documents (including, upon, its execution, the Asset Purchase Agreement) as assumed liabilities, and the Debtors shall have no other or further obligations or liabilities related thereto; and it is further ORDERED that the provision in Bankruptcy Rule 6004(g) staying .an order authorizing the use, sale, or lease of property until the expiration .of 10 days after entry of such order is hereby waived; and it is further ORDERED that pursuant to § 1146(c) of the. Bankruptcy Code, .the making delivery, . filing, or recording of:: (i) any deed, assignment or related transfer documents and (ii) any and all other instruments of conveyance or. transfer. hereunder.: and under the Transaction Documents (collectively.'the "Conveyances"), are :exempt from ,and shall° not be taxed under any Federal, - State,%or local law imposing a recording:ta); stamp tax, transfer tax, or similar tax, including, without limitation, transfer and recordation taxes applicable.to .deeds. and assignments of leases, including.without limitation the any real estate'ti•ansfer tax and any real property transfer tax kin arid. recordin officers are hereby authorized and (collectively "Transfer Taxes."). All filing . g. . directed to accept for recording or filing, and to record or. file immediately upon presentation thereof, the Conveyances, without the payment of any such Transfer Taxes and without the requirement or presentation of any affidavit .or form with .respect to any Transfer Tax regarding the Conveyances. All governmental authorities ' or taxing authorities shall be permanently enjoined from commencing or maintaining any action to collect from the Purchaser, the Debtors, or the Assets any Transfer Taxes arising from the transfers to be effectuated under the as28193�05_ 11215A0ou 17 U •ii': f•�i N. 000183 r 41. 9p� 1 Transaction Documents, and this Court retains jurisdiction to enforce the foregoing direction, by contempt or otherwise; and it is further ORDERED that the Debtors be, and hereby are, authorized to consummate the sale contemplated hereunder without the necessity of complying with any state or local bulk transfer requirements; and it.is further ORDERED that.. the failure specifically to include any particular provisions of the Transaction Documents (including, upon its execution, the Asset Purchase Agreement) in this Order.shall.not diminish or impair the efficacy of such provisions, it being the intent of the Court that such documents are approved in their entirety'' Dated: Charlotte, North Carolina June 2003 (Dated as of dale ettteradj . Chief United States Banki-upicy Judge G82 i l9U05. 17215.00011 F41ed for registration on the c Z0� at/a'elock in. and registere and wrlfled on the _ dar OUSA on b no: R(P ge 000 83 Reg a erof Deedv Transvhvania ly 0 0 O'742 ,'... Excise Tax: None (See Order attached as Exhibit B) SPECIAL WARRANTY DEED G� uquSt i I,aoob Tax Parcel Nos.: out of 8596-69-9440-000 Mail after recording to:. Robert W. Allen, Robinson, Bradshaw & Hinson, P.A., 101 North Tryon Street Suite 1900 Charlotte North Carolina 28246 This instrument was prepared by: Robinson, Bradshaw & Hinson, P A (RWA)101 N. Tryon Street Suite 1900 Charlotte, North Carolina 28246 Brief description for Index: Ecusta Road THIS SPECIAL WARRANTY DEED made this jd day of , 2003, by and between RFS US, INC., a Delaware corporation ("Debtor"), as Seller and hereinafter called the "Seller", and ECUSTA REAL ESTATE 1, LLC, a North Carolina limited liability company, hereinafter called the "Purchaser". Purchaser's mailing address is: P.O. Box 1119, Pisgah Forest, North Carolina 28768. The terms Seller, Debtor and Purchaser as used herein shall include such parties, their heirs, successors, and assigns, and shall include singular, plural, .:.' . masculine, feminine or neuter as required by context. .�, �a%Ilk y;N:i,'�,.1f3+.�,S.b.<:• ".�' giii:'S•' C-93462002 17215.00011 i t (3ooI83 000'743 WITNESSETH: WHEREAS, voluntary chapter 11 petitions under the United States Bankruptcy Code were filed by the Debtor and RFS Ecusta, Inc. ("Ecusta") in the United States Bankruptcy Court for the District of Delaware (the "DE Bankruptcy Court") on October 23, 2002; ,AND WHEREAS, the bankruptcy cases of the Debtor and Ecusta were transferred to the United States Bankruptcy Court for the Western District of North Carolina (the "NC Bankruptcy Court") pursuant to an order entered by the DE Bankruptcy Court on or about March 28, 2003, and such cases are now pending in the NC Bankruptcy Court under case numbers 03-10358 and 03-10360; AND WHEREAS, the Debtor and Ecusta have been authorized to own, operate and possess the property of the Debtor and Ecusta as debtors -in -possession by virtue of the provisions of the United States Bankruptcy Code; AND WHEREAS, after notices and hearings under the United States Bankruptcy Code, the Debtor has been authorized by an order of George R. Hodges, Bankruptcy Judge for the NC Bankruptcy Court to sell the real estate described in this Deed, and all creditors and other parties in interest in this estate have had proper, prior statutory notice of the consummation of the sale of the Realty (defined below), and there has been full compliance by the Debtor with the United States Bankruptcy Code and the order of the NC Bankruptcy Court entered on July 1, 2003, a true copy of which is attached hereto as Exhibit B, which order of the NC Bankruptcy Court is incorporated herein by this reference. NOW, THEREFORE, in consideration of the premises, and the sum of $64,750.00, the receipt of which by the Debtor is hereby acknowledged, and pursuant to the order of the NC Bankruptcy Court identified above, the Debtor has and by these presents does grant, bargain, sell and convey to the Purchaser all that real estate, including all improvements located thereon, C-834620Y02_ 17215.00011 2 ®0®J-S3 ()00 744 which is located in Brevard, Transylvania County, North Carolina, (the "Realty"), and which is more particularly described on Exhibit A attached to and incorporated into this Deed by this reference. This conveyance is made subject to the following: 1. All encumbrances and other matters both of record and not appearing of record, except to the extent the Realty is free and clear of the same by virtue of the order of the NC Bankruptcy Court identified above. 2. All unpaid ad valorem taxes, except as otherwise paid, agreed to be paid or prorated at closing. 3. The condition that the Realty, which includes all improvements located on the Realty, is conveyed "as is, where is" and without any representation or warranty of any kind concerning its physical condition. TO HAVE AND TO HOLD the Realty, and all privileges and appurtenances thereto belonging, to the Purchaser in as full and ample a manner as the Debtor is authorized and empowered to convey. And the Debtor covenants with the Purchaser, in reliance. on the order of the NC Bankruptcy Court identified above, that the Debtor has not created or granted any encumbrances or interest which would be adverse to the Purchaser, and the Debtor has done nothing to impair such title to the Realty as the Debtor received; and the Debtor will warrant and defend that title against the lawful claims of all persons claiming by, under or through the Debtor, except for the specific exceptions stated above. C-83462002_ 17215.00011 3 0401W0745 IN WITNESS WHEREOF, the Debtor has caused this instrument to be signed in its corporate name as duly authorized by the order of the NC Bankruptcy Court identified above, the day and year first above written. RFS US, INC. By:�F�^' Y 1 L`�/^'/I �l�X (SEAL) Jim MM Aill�zed Agent pursuant to the Order of the Court attached hereto as Exhibit B STATE OF NORTH CAROLINA COUNTY OF MECKLENBURG This 0% day of 2003, personally came before me Jim McMillan, who, being by me duly sworn, sa that he is the duly authorized agent of RFS US, INC., a Delaware corporation, pursuant to the Order of the U.S. Bankruptcy Court, entered on July 1, 2003, and that said writing was signed by him, in behalf of said corporation, in accordance with the Order of the U.S. Bankruptcy Court entered on July 1, 2003. And the said Authorized Agent acknowledged the said writing to be the act and of said corporation. �deed p n Notary Public OFFICIAL. SEAL S %��. My commission expires: O P. N,m.Gw�. -- IREDELL COUNTY LORETTA B. MICHAEL [NOTARIAL SEAL] M Commission Expires mj.- 19, 2007 The foregoing Certificate of l— Q l�ll�/ .tom M i c 11 J :;;:.; ;:iiis;: is certified to be correct. This instrument and this certificate are duly registered at the date and time and in the Book and Page shown on the first page hereof. (� W5JYCvU Register of Deeds 4. C•834620v02_ I7215.o00L 1 4 000183 000'746 EXHIBIT A That certain lot, parcel, or tract of land located in Brevard Township, Transylvania County, North Carolina, more particularly described as follows: BEING all of Tract 1-2 as shown on plat entitled "Boundary Survey Olin Corporation" recorded in Plat Cabinet 2, Slide 371 (the "Plat"), in the Office of the Register of Deeds of Transylvania County, North Carolina (the "Registry"), and as shown on survey dated June 28, 2001, prepared by Freeland - Clinkscales & Associates, Inc. of NC as drawing number h21126d and which is more particularly described from the Plat adding a call to separate Tract 1-2 from Tract 1-1 which tract is shown on the plat recorded in Plat Cabinet 2, Slide 370-A, as follows: Beginning at a concrete monument set (CMS 46 as shown on the Plat), the southeastern corner of the Mackie Estate Subdivision as shown on Plat Book 1, Page 10 in the Registry; thence N. 19-04-00 E. 496.90 feet to a point; thence N. 19-03-58 E. 16.50 feet to a point; thence N. 19-04-00 E. 855.66 feet to a point; thence N. 73-32-20 E. 8.73 feet to a point; thence N. 73-32-10 E. 839.98 feet to a point; thence S. 15-21-00 E. 106.63 feet to a point; thence N. 74-46-21 E. 16.54 feet to a point; thence S. 06-58-49 W. 688.58 feet to a point; thence S. 82-27-04 E. 495.45 feet to a point; thence S. 34-32-05 E. 10.00 feet to a point; thence S. 34-32-12 E. 976.46 feet to a point; thence S. 17-43-55 E. 455.58 feet to a point; thence S. 24-00-16 W. 2127.88 feet to a point; thence S. 24-00-17 W. 39.02 feet to a point; thence S. 24-00-00 W. 8.78 feet to a point; thence S. 72-50-33 E. 350.38 feet to a point; thence S. 14-59-41 W. 76.09 feet to a point; thence S. 14-59-39 W. 1042.91 feet to a point; thence S. 14-59-41 W. 82.00 feet to a point; thence N. 59-00-33 W. 537.49 feet to a point; thence N. 63-15-37 W. 598.38 feet to a point; thence N. 88-30- 34 W. 354.54 feet to a point; thence N. 47-00-32 W. 131.76 feet to a point; thence N. 26- 38-52 W. 485.39 feet to a point; thence N. 58-16-15 W. 210,75 feet to a point; thence S. 62-59-26 W. 174.49 feet to a point; thence N. 72-27-46 W. 33.00 feet to a point; thence N. 72-27-48 W. 177.80 feet to a point; thence N. 74-45-36 W. 109.11 feet to a point; thence 5.,71-48-16 W. 121.15 feet to a point; thence N. 57-52-23 W. 472.32 feet to a point; thence N. 31-51-27 W. 497.50 feet to a point; thence N. 31-51-27 W. 30.00 feet to a point; thence N. 58-49-58 E. 150.41 feet to a point; thence N. 64-22-58 E. 225.73 feet to a point; thence N. 61-56-59 E. 102.43 feet to a point; thence N. 44-22-00 W. 309.44 feet to a point; thence N. 32-14-23 W. 165.00 feet to a point; thence N. 08-47-27 W. 429.00 feet to a point; thence N. 83-32-10 W. 33.00 feet to a point; thence N. 18-48-01 W. 264.39 feet to a point; thence N. 20-15-15 E. 165.25 feet to a point; thence N. 33-45- 18 E. 78.50 feet to a point; thence N. 34-00-17 E. 372.90 feet to a point; thence N. 12-06- 07 E. 32.86 feet to a point; thence, a computed closure line, N. 16-01-25 E. 251.17 feet to a point; thence S. 84-27-10 E. 7.43 feet to a point; thence S. 84-27-10 E. 1226.46 feet to a concrete monument set, the point and place of BEGINNING. �E �••j•kti a.:ll•.R3.�tlr. �t t•j�: ii�;}:j '�t:'tyj u:.'.,. C-834620v02_ 17215.00011 5 % ..:00018:3 EXHIBIT B UNTIED STATES BANKRUPTCY CQURT FQ CAROLINA. WESTERN DISTRICT OF NORTH 0/2 A HEVILLE DIVISION 00 S Ire Chapter I I C In re. PFS ECUSTA INC. and RFS US INC.,Case.]�o.: 03-10360 c4s.eN.o-,: 03-103$8 w W.-JUL 12003..'. Debtors.: - Jointly Administered- . SD= ORDER:Abi:H6RTZING THE- SALE:.0F, SUBSTANTIALLY ALL OF THE DEBtORS'-AgSjftS FR'E*t-AND'.CLEAR OYALL LIENS., CLAIMS, kAN 0'. _ND-EXEMPT FROM STAMP EkTY33 ENCUMBRANCES; THER INTERESTS A OR SIMIIARTANMAND IIK.OF AL'L:XRA:TRANSACTIONS S 'CO.NiSUM1M:(41'K.RA,.N RELATEPT PtWU.A2rr 70-BMUTTC'O SECTIONS 46wAND BANKR:UPT. RULES '200 6b4AND..6006 ;05,-363, ANP:11 Cy The above.-captioned'.debtors and:.debtorq-in-posses ..sion. (collectively; the `15ebtors"), 2003 M-e.Motionll pursuant. to having. filed 'their fourth motion, dated June. 3,: d' (the '.Bankrup 105 and• 363 of Title 11 *of the T3nit6d States Co e `Bankruptcy' -Code") for an order auth6nizing the sale of substantially all 'of.'the 'Debtors' remaining *assets to New Tech Environmental,. Inc. or an entity to be fbimed by' or an affiliate of New Tech Environmental, Inc. - - that is assigned the rights of and assumes the obligations of New Tech Environmental, Znc. under ? the Transaction Documents"(as hereafter defined): (the '.'i?irchase'),.fre6 and. blear of all bens,' claims, encumbrances, and other interests, authorizing the Debtors' to 'consummate all transactions related to the above, and granting such other relief as is fair and equitable; and due e and proper notice of the Bulk Sale Motion having bengiven; and all responses to the Bulk Sale . Motion having been withdrawn, resolved, or overruled; and after due deliberation and sufficient ap a- therefor.'. causepiarm • C-828193v05 171-15.00011 rr IS HEREBY FOUND AND DETER.NIINED THAT: .A. This Court has jurisdiction to hear and determine the Bulk Sale Motion and all related matters pursuant to 28 U.S.C. §§ 1334 and 157. Venue of this proceeding in this district is proper pursuant to 28 U.S.C. § 1409. The Bulk Sale Motion constitutes a core proceeding pursuant to 28 U.S.C. § 157(b)(2)(A), (13), (_\�, and (0). B. Proper, timely, adequate and sufficient notice of the Bulk Sale Motion and the sale of the Assets (as hereafter defined) was provided pursuant to Bankruptcy Rules 2002, 6004, and 6006, and previous orders -of this Court, and such notice was reasonable, sufficient and appropriate under the circumstances presented. No otl er or further notice of the Bulk Sale Motion or the entry -of this -Order is necessary. ;.A reasonable opportunity to object, respond, or to otherwise be' heard. regarding the relief requested in the Bulk Sale Motion has been afforded to all interested parties. C. The Debtors.: are the sole and..lawful owners.of all the Assets, -and the Assets, pending the consumination of the sale hereunder, constitute property'of the Debtors' estates pursuant to § 541(a) of the.Bankruptcy Code. D. The Debtors have determined in the exercise of their business judgment, to: (i) sell all of their right,. title, and interest in and to the Assets upon the terms and conditions set forth herein; and (ii) consummate all transactions contemplated herein and in the Transaction Documents (subject to the provisions in the fourth through sixth decretal paragraphs below). E. The provisions of §§ 363(b), 363(f), 363(m), and 363(o) of the Bankruptcy Code have been complied with and are applicable as to the Asserts. F. The Debtors, as debtors in possession, (i) have full corporate power and authority to execute the Transaction Documents and all other documents contemplated by the Bulk Sale C•828193VO5_17215.00011 2 e 000183 000'749 Motion with regard to the Assets, (ii) have all of the corporate power and authority necessary to consummate the transactions contemplated by the Bulk Sale Motion with regard to the Assets and the Transaction Documents, and (iii) have taken all corporate action necessary to authorize and approve the sale described in the Bulk Sale Motion and the consummation by the Debtors of the transactions contemplated thereby, G. The Debtors have demonstrated sound business justifications for the sale in accordance with the Bulk Sale Motion and the Letter Agreement (as defined below) and the other transactions and actions contemplated, by the Bulk.Sale Motion. with regard to the Assets pursuant to. §.363(b) of the Bankruptcy ,Code; outside -of a plan of reorganization, and it is a reasonable exercise of the -Debtors' business judgment to execute, deliver and consummate the Transaction Documents. with the Buyer:and consummate. the transactions contemplated by the Transaction Documents. .. Fi. Consummation of the; sale. of the.Assetsas contemplated herein and in. the Transaction Documents is in :the best interests of the Debtors, their estates, _creditors, equity security holders, and other parties in.interest. . I. The sale of the Assets is properly authorized. under all applicable provisions;of the Bankruptcy Code, including without limitation ' 105 3 §§ 63, and 1146 of the Bankruptcy Code. J. The sale of the Assets contemplated 'herein represents the highest or otherwise best offers received for the Assets following the conduct of an open and complete sale process (including a public auction) reasonably calculated to yield the highest or otherwise best offers for the Assets. K. The consideration provided by the Purchaser for the Assets (i) is fair and reasonable, (ii) constitutes reasonably equivalent value, reasonable market value and fair `V.., W FA,, C•82819345_ 17215.00011 .. 3 a� 7 00 consideration for the Assets under the Bankruptcy Code and under the laws of the United States, or the District of Columbia, (iii) is the highest or otherwise best any state, territory, possession offer for the Assets and (iv) will provide a greater recovery for the Debtors' creditors and other interested parties than would be provided by any other practically available alternative. ' nD oc um e nts will eT ransa ctio er the ha s e ru under Assets purchaser L. The transfer of th essets to t h be a legal, valid, and effective transfer of the Assets and will, upon the -occurrence of the Closing (as hereafter defined), vest in the Purchaser all right, title and interest .of the Debtors in the Assets free and clear of.all liens, claims, encumbrances, and other interests, including, without interests, pledges, liens, 'replacement liens, judgments, demands, limitation, mortgages,: security encumbrances, or' charges of any kind or .nature,' :if any, including, but not limited to, any or othef exercise"of any attrib restriction on 'the transfer, receipt of iutes of ownership income (collectively, "Liens"), and all debts arising in any way in connection with any. acts of the Debtors, claims (including but not limited to "claims'• as.that term is defned in the Bankruptcy Code), obligations, demands, guaranties, interests, and matters of any kind and nature, whether to or subsequent to the commencement of these Chapter 11 cases, and whether arising prior imposed by agreement, understanding, law, equity, br otherwise, -including, but not limited to, or out of, in connection with, or.in any way relating to the those relating to taxes arising under W operation of the Debtors' businesses prior to Closing (collectively, "Claims"), with all such Liens and Claims, and any and all other interests to attach to the net proceeds of sale (the "Sale Proceeds") of, and with the same force, effect :and priority as such Liens, Claims and other interests had against, the Assets, and holders thereof shall be permanently enjoined from such against the Assets and the Purchaser and shall look solely to the Sale Proceeds. asserting cs29193VO5_ 17215.00011 4 000751 M. As a condition to purchasing the Assets, the Purchaser requires that the Assets be sold free and clear of all Liens, Claims and other interests and that it shall have no liability whatsoever for any. obligations of or Claims against the Debtors, except as may be expressly permitted in the Transaction Documents. The Purchaser would not enter into the Transaction Documents and consummate the transactions contemplated by the Bulk Sale Motion, thus adversely affecting the Debtors, their estates, and their creditors, if the sale of the Assets to the Purchaser was not free and clear of all Liens, Claims and other interests of any kind or nature whatsoever, or if the Purchaser would, or in the future could, be liable for any such Liens or Claims and if the transfer of the Assets could not be -.made under § 363 of the Bankruptcy Code. N. The transfer of the Assets to the Purchaser free and clear of all Liens, Claims and other interests will not result in. any undue. burden or. prejudice to any holders of any Liens; Claims or other interests since all such Liens and Claims of any kind or nature whatsoever shall attach to the Sale -Proceeds in the order oftheir-priority, with;the same validity, force and effect which. they now have as against the. Assets, subject to any claims and- defenses the Debtors or other parties may possess with respect thereto. O.The Letter Agreement was negotiated, proposed and agreed to by the Debtors and the Purchaser as parties thereto without collusion, in. good faith, and from arm's-length bargaining positions. The Debtors and the Purchaser have at all times acted in good faith and in accordance with applicable law. The Purchaser is a good faith purchaser for value with respect to the Assets under § 363(m) of the Bankruptcy Code and will be acting in good faith pursuant to § 363(m) of the Bankruptcy Code in closing the transaction contemplated by the Bulk Sale Motion and the Transaction Documents in accordance therewith.. By reason of the foregoing, Closing, the Purchaser will be entitled to all of the protections afforded under § 363(m). upon is H'F4Y8� r.�i3 kt�r�'x!X Z..• G82819M5_ 17215.00011 5 000183 000 r 52 Neither the Debtors nor the Purchaser has engaged in any conduct that would cause or permit the Transaction Documents to be voided under § 363(n) of the Bankruptcy Code. The sale of the Assets approved by this Order is not subject to avoidance pursuant to § 363(n) of the Bankruptcy Code, and the consideration provided by the Purchaser for the Assets under the Transaction Documents (including, upon its execution, the Asset Purchase Agreement) shall be deemed to constitute reasonably equivalent value and fair consideration. P. Other than with respect to the Assumed Liabilities (as defined below), the Purchaser shall tnot by virtue of this Order or the Transaction Documents or the transactions contemplated hereunder or thereunder, be deemed to have "successor" liability or responsibility for claims against or obligations of Debtors arising prior to or as a resuli. of the purchase and sale of the.Assets hereunder. Q.. The sale of the Assets to the Purchaser will maximize the value of the Debtors' estates and is in contemplation of the implementationof.a plan of liquidation and necessary to the confirmation and consummation of any. such plan. Accordingly, the sale of the Assets shall be deemed a sale "under a plan" within the meaning of § 1146(c) of the Bankruptcy Code and shall 'be exempt from any and all stamp taxes, recording taxes, and similar taxes, including without limitation any real estate transfer tax and any realty property transfer tax, although such sales do not constitute a sub rosa plan.of reorganization. The Asset Purchase Agreement is not a sub rosa Chapter 11 plan for which approval has been sought without the protections that a disclosure statement would afford and is not in violation of creditors' and equity security interest holders' voting rights. K The relief requested in this Bulk Sale Motion is reasonable and in the best interests of the Debtors' estates and creditors. .::4; •: � ::'i,:: �::l is � .� �'�' �� :..::j C-818193v05 17215.00011 - 6 ,T l i 7 0001-83 000754 effective and binding on all parties upon execution thereof without further order of this Court-, and it is further ORDERED that in the event that the Debtors, the Purchaser, the Committee, and the Lender do not agree on the form and substance of an Asset Purchase Agreement, or PACE or the r chas e Agreement ree ent prior to ect]ont such A•ssetPuely.files an0b]BankruptcYAdministrator tz . . the execution thereof, this Court will schedule and conduct an expedited hearing thereon at the earliest date available on the Court's calendar; and it is further ORDERED that all 'of the terms, conditions, actions, rights, remedies, and obligations contained in each and any. of the Transaction Documents (including, upon its execution, the Asset Purchase Agreement),:including but not. -limited to the funding obligations related to the Debtors' operations, the sale of.certain of the Debtors' assets, the use of cash collateral, and the access to the Debtors' facilities, .is hereby. approved and is binding on all parties thereto; and it is further ' hereby authorized- to execute on behalf of the Debtors ORDERED that Jim McMillan is her the Transaction Documents and all-- other .documents necessary to consummate the transaction authorized in this Order, and it is fither ORDERED that so long.as he acts in accordance with the terms of this Order and in the • • • aA absence of gross negligence or wilfull misconduct, Jim McMillan (a) shall not be subject to any personal liability for any claims arising from his participation in the consummation of the : ..... ........... :. in this Order, (b)'is hereby released by the Debtors,:TBCC, the Committee transaction authorized and the Purchaser from any such liability; and (c) no party may make a claim against Jim McMillan for any act or omission arising in connection with his participation in the consummation of the transaction authorized in this Order, and it is further It tr t - C-B2819J�A5_ 17115.00011 S . . 600183 0007S3 NOW, THEREFORE, IT IS HEREBY: ORDERED. that the Bulk Sale Motion is .-ranted; and it is further ORDERED that all responses to the Bulk Sale Motion have been withdrawn or otherwise resolved, or are hereby overruled; and it is further ORDERED that the letter.agreenient (the "Letter Agreement'), to be entered into by and among the Debtors, the Purchaser, and the Debtors' secured lender in these cases (the "Lender"), a substantially complete draft of which was attached to the Bulk Sale Motion as exhibit A, is hereby approved; and it is further ORDERED that the Debtors are authorized, to negotiate and execute an asset purchase agreement (the "Asset Purchase Agreement,"' and together with the Letter Agreement, the "Transaction Documents") with'the Purchaser setting forth the definitive terms of this sale, subject only to the prior written consent of the Lender and the official committee of unsecured creditors (the "Committee"), to the form and substance thereof; provided however that the Debtors shall provide the union representing the Debtors' former }sourly employees ("PACE') and the Bankruptcy Administrator for the Westem District- of North Carolina (the "Bankruptcy Administrator") notice and three business days' opportunity to object to the form of the Asset Purchase Agreement prior to its execution; and it is further ORDERED that if the Debtors and the Purchaser negotiate and execute an Asset Purchase Agreement, and if the Committee and the Lender expressly consent in writing to such Asset Purchase Agreement prior to its execution, and if PACE and the"Bankruptcy Administrator do not timely file an objection to such Asset Purchase Agreement prior to its execution, then the Asset Purchase Agreement is hereby deemed to be approved as of its execution, and will be c-s2sts��os tr_ts.000ti 7 / 000183 000''i55 ORDERED that within one business day of the entry of this Order, the Purchaser shall pay $50,000 as a good faith deposit (the "Deposit"), such Deposit to be treated in accordance with Paragraph 6 of the Letter Agreement; and it is further ORDERED that to the extent the Purchaser identifies one or more of the Debtors' executory contracts and/or unexpired leases (the "Leases") to be purchased and assigned pursuant to the Transaction Documents (including, upon its execution, the Asset Purchase Agreement) and hereto, the -Debtors shall .promptly- file a motion pursuant to § 365 of the Bankruptcy Code for authority to asst'me such Leases and assign'them to the Purchaser, and the Purchaser will be responsible for all cure costs associated therewith; and iris further ORDERED that on or before the closing of the sale {the "Closing"), the Purchaser shall pay to the Debtors in cash, certified check, wire transfer, or other immediately available funds acceptable to the Debtors, the Purchase Price (as defined below);' and it is further ORDERED that the Debtors are authorized t6 sell to the Purchaser all of the Debtors' remaining assets, except for those assets specifically identified in the Transaction Documents as excluded therefrom, "AS IS,' VIEERE IS," without recourse and without any representations or warranties (except as may be 'set forth in this Order or the Transaction Documents), for the pride (the "Purchase Price") of $1.3 million, subject to'a potential Purchase Price reduction not to exceed $50,000, as identified in the Transaction Documents, and to consummate the transactions contemplated in the Transaction Documents (including, upon its execution, the Asset Purchase Agreement) with the proceeds to be paid by Purchaser at Closing to be deposited into the 001952624"78 at First Citizens Bank; and it is further Debtors Account No. ORDERED that the Debtors are, without any further corporate authorization, authorized o perform under, consummate and implement, the to execute and deliver, and empowered t C-828193v05 1T15.00011 9 Transaction Documents (including, upon its execution, the Asset Purchase Agreement), together with all additional instruments and documents that may be reasonably necessary or desirable to implement the Transaction Documents (including, upon its execution, the Asset Purchase Agreement), and to take all further actions as may be necessary for the purpose of assigning, transferring, granting, conveying and conferring to the Purchaser or reducing to the Purchaser's possession, the Assets, 'or as may .be necessary or appropriate to the performance of the obligations as contemplated by the Transaction Documents (including, upon its execution, the Asset Purchase Agreement); and it is further.. ORDERED that except.as expressly set forth in the Bulk Sale Motion, the Transaction Documents (including, upon. its execution, the Asset Purchase Agreement) or this Order, the Purchaser assumes no employee liabilities that'arose prior to Closing, including any accrued but unbilled liabilities; and it is further ORDERED that the transfer of the Assets to the Purchaser.pursuant to, and subject to the terms of; the Transaction Documents (including, upon- -its execution, the Asset Purchase Agreement) shall constitute a legal, valid and effective transfer of the Assets, and shall, upon the occurrence of the Closing, -vest in the Purchaser pursuant to § 363(f) of the Bankruptcy Code all right, title and interest of the Debtors -in and to the applicable Assets to be acquired by such Purchaser free and clear of all Liens, Claims and other interests of any kind or nature - whatsoever, with all such Liens, Claims•and other interests to attach to the Sale Proceeds in the order of their priority, with the same validity, force and effect which they now have as against the Assets, subject to the terms of this Order and the rights, claims, defenses, and objections, if any, of the Debtors and all interested parties with respect to such Liens, Claims, and other interests; and the holders of such Liens, Claims, and other interests shall be permanently '•F,it:;�•'.'•ii%;:;t;�:i+;iil'•r;.+:'?tiiiiri'"'•'`:'� '.'i<`i�: ky I�h a,:+.fi,�i!its:i4,k::P:iY>:;wtrt•:';�wslgti•::w: asz819305_171-15.000n 10 ;::`•'.•-=:::. :.: GoCIS3 0007517 enjoined •from asserting such against the Assets or the Purchaser and shall look solely to the proceeds of sale; and it is further ORDERED that this Order (a)shall be effective as a determination that, on the Closing. date with respect to any Assets, and subject to the occurrence of the Closing, all Liens, Claims and other interests of any kind or nature whatsoever existing prior to the Closing as to the Assets transferred' on such Closing date pursuant to the Transaction Documents (including but not limited to any claims under any applicable revenue, pension, ERISA, tax, labor, environmental or natural resource law, rule or regulation, or any products liability law) have been unconditionally released and terminated as to such :Assets, and that the conveyances 'described' herein have been effected, and (b) shall be binding upon. and shall govern the acts of all entities, including without limitation, all filing: agents, filing officers; title agents, title companies, recorders of mortgages, -recorders of deeds, registrars of deeds, administrative agencies, governmental departments, secretaries of state, federal, state, and' local officials, and all other persons and entities who may be required'by operation of -law, the duties of their office, or contract, to accept, file, register or otherwise record or release any documents or instruments, or who may be required to report or insure any title or state of title in or to any of the Assets; and it is further ORDERED that except as, expressly permitted or otherwise specifically provided for in the Transaction Documents (including, upon its execution, the. Asset Purchase Agreement) or this Order in respect of the Transaction Documents (including, upon its execution, the Asset Purchase Agreement) or the Assets to be transferred by the Debtors, the Purchaser shall have no liability or responsibility for any liability or other obligation of the Debtors arising under or related to such Assets and, to the extent allowed by law, the Purchaser (and its officers, managers G829193vO5_ Ir_is.00011 11 shall not be liabQQS?7tt �ther claims against the Debtors or any of their and members) or affiliates, and the Purchaser shall have no successor or vicarious liabilities of any predecessors kind or character whether ]mown or unknown as of the Closing under the .Transaction Documents (including,. upon its execution, the Asset Purchase Agreement), now existing or Debtors or an obligations of with respect ect to the Y r f1 xed or contingent,P whether hereafter arising,... the Debtors, other than the Assumed Liabilities., arising prior to the Closing under the Transaction Documents. (including, upon its execution, the Asset Purchase Agreement), including, but not limited to, any liabilities under any revenue, pension, ERISA, tax, labor, or natural resource law, rule or. regulation, or any products liability Iaw, arising, environmental or under, out of in connection with, or in anyway relating to the -operation of accruing, payable the Debtors' businesses prior to the Closing; and it is further.. ORDERED that this 'Court retains and shall have exclusive jurisdiction to endorse and ORDERED implement the terms and provisions of this Order, the Transaction Documents, all amendments thereto, any waivers and consents thereunder, and each of the agreements executed in connection therewith in. all respects or the rights and duties of the..p,uties hereunder or thereunder or any issues relating to any .of the foregoing, and to. resolve any dispute concerning any of the foregoing, including, but not limited to, retaining jurisdiction to (a) interpret the terms, conditions and provisions of any of the foregoing, (b) compel delivery of the Assets to the Purchaser or order the specific performance. of any act to be performed by the Debtors or any other party to consummate the sale, and (c) compel delivery of the Purchase Price or performance of other obligations owed to the Debtors by tile Purchaser;.and it is further ORDERED that subject to Closing and consummation of the transaction, each and every federal, state and local governmental agency, recording office or department and all other parties, }.:• • ;:: ' .. ... ... ...K >. R::•e Sot r.�r.�,,kttl Yo a�iR ty, C-928190v03_ 17215.00011 1 I 0001830001S9 . accept this Order for recordation as conclusive evidence person or entities is hereby directed to of the free and clear, unencumbered transfer of title to the Assets conveyed to the Purchaser; and it is further ORDERED that subject to Closing and consummation of the transaction, the provisions is Order authorizing the sale of the Assets free and clear of Liens, Claims and interests (with of this such Liens and Claims to attach to the proceeds of the sale of the Assets as provided in this Order) shall be self-executing, and neither the Debtors, the Purchaser nor any other party shall be required to execute or file releases, termination statements, assignments, cancellations, consents or other instruments to effectuate, consummate and/or implement. the provisions .hereof with respect'to the sale; providel however- that this Paragraph shall not excuse such. parties from performing any-and.all of.the respective obligations under the Transaction Documents; and it is further ORDERED that if any person or entity that has filed financing statements, mortgage, mechanic's liens, lis pendens, or other documents or agreements evidencing Liens or Claims e delivered to the Debtors .pnor to the Closing date, in against or in the Assets shall not hav proper form for filing and executed .by the appropriateparties, releases; termination statements, assignments, cancellations, consents, instruments of satisfaction, or such other instruments to effectuate, consummate and/or implement the provisions hereof with respect to the sale with regard to all Liens and Claims that the person or entity has with respect to the Assets or otherwise, the Debtors or the Purchaser are hereby authorized and directed at Closing to file with any federal, state or local governmental agency, recording office or department and all other parties, persons or entities this Order as conclusive evidence of the free and clear, unencumbered Pk c-828193v6_ I T L S.000I t 13 000'760 transfer of title to the Assets conveyed to the Purchaser to effectuate, consummate and/or implement the provisions hereof with respect to the sale of the Assets; and it is further ORDERED that consummation of the Transaction Documents (including, upon its execution, the Asset Purchase Agreement) and the transactions contemplated therein and thereby do not effect a dz facto merger or consolidation of any Debtor andt he Purcha ser or result in the continuation of the Debtors' business under the Purchaser's control. The Purchaser is not the or a continuation of'.the Debtors, nor is the Purchaser alter ego oiy a successor in interest to, otherwise liable for the Debtors' debts and obligations, unless specifically provided for in the Transaction Documents or pursuant to this Order;• and it is fixrther. ORDERED that all entities that are presently, or on • the 'Closing date may. be, in ' possession of some or all of the Assets are hereby directed to surrender possession of the Assets _ to the Purchaser, on the Closing date for such:Assets;-and it is further ORDERED that. nothing contained in any planof reorganization (or liquidation) confirmed in these cases -or the order of confirmation confirming. any such plan shall conflict with or derogate from the provisions. of the Transaction Documents (including, upon its execution, the Asset Purchase Agreement) or the terms of this Order;. and it is further ORDERED that the reversal or modification on appea l of the authorization provided Y. herein to consummate the sale of any Assets shall not affect the validity of the sale of such Assets to the Purchaser, unless such authorization is duly stayed pending such appeal prior to the Closing date with -respect to such Assets; and it is further ORDERED that notwithstanding anything herein to the contrary, nothing herein shall in any way affect or diminish any rights of the Debtors or any successor thereto (including any to obligations of the Purchaser arising under the chapter 11 or chapter 7 trustee) with respect .. _ ���•y�i?i�'.�:>�iYJ{i'Y.jr'y':,il;ik@i�.'n';h fii•,'tip C-nS191,03 la15.00011 14 . 000183 000761 Transaction Documents (including, upon its execution, the Asset Purchase Agreement) or this Order. The terms and provisions of the Transaction Documents (including, upon its execution, Agreement) and this Order shall be binding in all respects' upon and shall the Asset Purchase inure to the benefit of� the Debtors, their estates, and their creditors, the Purchaser and their and an affected third parties (including, but not respective affiliates, successors. and assigns a Y •:<::;•:::::a>r!:::s::°:r<:::::!:::>: limited to, all persons asserting Liens or Claims in the Assets to be sold to the Purchaser), notwithstanding any subsequent appointment of any trustee(p) under any chapter of the Bankruptcy Code, as to which trustee(s) such terms and provisions likewise shall be binding; and it is further ORDERED that in furtherance of the. foregoin& in the event -of the conversion of the Debtors' cases, any Chapter' 7 trustee(s) shall. be obligated to perform under the Transaction Documents (including, upon its execution, the Asset Purchase Agreement) to permit the Debtors' the full value of the. sale to -the Purchaser and to permit the Purchaser to estates to realize the transactions provided in and. contelplated. by the Transaction Documents . consummate (including, upon its execution, the Asset Purchasd-Agreement), and the Transaction Documents (including, upon its execution, the Asset Purchase: Agreement) shall not be executory contracts that such trustee(s) can reject, and the Purchaser and the Debtors, and their respective successors, ??`i!?' shall be entitled to the remedy of specific performance so as to be permitted to consummate the provided in and contemplated by the Transaction Documents, as permitted under transactions applicable non -bankruptcy law; and it is further ORDERED that the Transaction Documents (including, upon its execution, the Asset Purchase Agreement) and any related agreements, documents or other instruments may be modified, amended or supplemented by the parties in accordance with the terms thereof, without : O92SL93v05_ L7215.00011 15 i . ii M-111., J Cc-0183 000762 further order of the Court, provided that any such modification, amendment or supplement does not have a material adverse effect on the Debtors' estates and is, if occurring prior to the Closing date, approved by counsel for each of the Debtors, the Purchaser, the Committee and the Lender; and it is further ORDERED that all of the Debtors' interests in the Assets to be acquired by the Purchaser . . I........... - shall be, as of the Closing date and upon the occurrence of the .Closing, transferred to and vested . . . . . . . in the Purchaser. Upon- the occurrence of the Closing, this Order shall be considered and constitute for any andall purposes a full and complete general assignment, conveyance and transfer of the Assets acquired by the Purchaser at such Closing under the Transaction Documents (including,.upon its execution, the Asset Purchase Agreement) and/or a bill of sale or assignment transferring good and marketable; indefeasible title and interest in the Assets acquired by the Purchaser under the Transaction Documents (including, upon its execution, the Asset Purchase Agreement) to the Purchaser; and it is.further- ORDERED that as of the'Closing, date, the'Purchaser shall Se-here'by granted immediate and unfettered access to the Assets acquired by the Purchaser; and it is further ORDERED that if the Purchaser fails, to pay the Deposit as set forth above, or breaches is any other or further -obligation hereunder, under 'the Letter Agreement, or, following its execution, under the Asset Purchase. Agreement, (A) all rights of the Purchaser to the Assets shall be immediately waived and/or terminated, and, (B) the Debtors may sell by private sale or public auction, at their discretion, the Assets to another purchaser or purchasers pursuant to the terms and conditions of the Expedited.Sale Order (as defined in the Bulk Sale Motion) or any further or other order of this Court; and it is further 5, c-6'J193v05_ 17,715.00011 16 Y CjOOJ.S3 000763 ORDERED that immediately upon consummation of the sale, the Purchaser shall assume all liabilities and obligations in and relating to the Assets purchased by it hereunder (except for the Liens, Claims, and other interests that are transfer -red and released by the terms hereof), and those liabilities explicitly identified in the Transaction.Documents (including, upon its execution, and the Debtors shall have no other or set Purchase Agreement) as assumed liabilities, As the further obligations or liabilities related thereto; and it is further ORDERED that the provision in Bankruptcy Pule 6004(g) staying an order authorizing the . use, sale, or lease of property until the expiration of 10 days after entry of such order is hereby waived; and it i . s further ORDERED that pursuant to § 1146(c) of the Bankruptcy Code, the. making delivery, filing, or recording ofany deed, assignment or related transfer documents and (ii) any and all transfer hereunder. and under the Transaction Documents other instruments of conveyance or (collectively. the "Conveyances"), are exempt from and shall- not be taxed under any Federal, . State, or local . law imposing a recording:tax;'stamp tax, transfer tax, or similar tax, including, without limitation, transfer and recordation taxes applicable to deeds and assignments of leases, including. without limitation the any real estate transfer tax and any real. property transfer tax officers are hereby authorized and All filing and. recording. fer Taxes"). (collectively "Trans filing, -a and record or file immediately upon presentation directed to accept for recording or thereof, the Conveyances, without the payment of any such Transfer Taxes and without the davit or form with respect to any Transfer Tax regarding requirement or presentation of any affi al authorities Or -taxing authorities shall be permanently the Conveyances. All government enjoined from commencing or maintaining any action to collect from the Purchaser, the Debtors, or the Assets any Transfer Taxes arising from the transfers to be effectuated under the 01 C-929193v05_ 1-1215-0-0011 17 000'764 Transaction Documents, and this Court retains jurisdiction to enforce the foregoin- direction, by contempt or otherwise; and it is further ORDERED that the Debtors be, and hereby are, authorized to consummate the sale contemplated hereunder without the necessity of complying with any state or local bulk transfer requirements; and it.is further ORDERED that the failure specifically to include any particular provisions of the Transaction Documents (including, upon its execution, the Asset Purchase Agreement) in this Order shall not diminish or impair the efficacy of such provisions, it being the intent of the Court that such documents are approved in their entirety. Dated: Charlotte, North Carolina June . 2003 (Dated as 'of date entered) . Chief United States Bankrupicy. Judge C-829193v05_17115.00011 - 18 i Filed far regislratio as the 1 day of 1U� ato'clock . verified oa the ( m. and registemd m1d dar 4f 20 03 :::.:..,.. do ►ug{��, ao: r: !seer ojDeeJs•, Tronsrh'aaia yRty - C-00183 Excise Tax: None (See Order attached as Exhibit B) 0 0 0 7G 5 SPECIAL WARRA TY DEED .uau fl- Tax Parcel Nos.: out of 8596-69-9440-000 Mail after recording to: Robert W. Allen, Robins)n, Bradshaw & Hinson, P.A., 101 North Tryon Street Suite 1900 Charlotte North Carolina 28246 This instrument was prepared by: Robinson, Bradshaw & Hinson, P.A. (RWA), 101 N. Tr + n Street Suite 1900 Charlotte, North Carolina 28246 - Brief description for Index: Ecusta Road (' THIS SPECIAL WARRANTY DEED made this I'l-t`day of 2003, by and between RFS US, INC., a Delaware corporation ("Debtor"), as Seller and hereinafter - called the "Seller", and ECUSTA REAL ESTATE 2, LLC, a North Carolina limited liability company, hereinafter called the "Purchaser". Purchaser's mailing address is: P.O. Box 1119, Pisgah Forest, North Carolina 28768. The terms Seller, Debtor and Purchaser as used herein shall include such parties, their heirs, successors, and assigns, and shall include singular, plural, masculine, feminine or neuter as required by context. C-83462102 17215.00011 000,766 WITNESSETH: WHEREAS, voluntary chapter 11 petitions under the United States Bankruptcy Code were filed by the Debtor and RFS Ecusta, Inc. ("Ecusta") in the United States Bankruptcy Court for the District of Delaware (the "DE Bankruptcy Court") on October 23, 2002; AND WHEREAS, the bankruptcy cases of the Debtor and Ecusta were transferred to the United States Bankruptcy Court for the Western District of North Carolina (the "NC Bankruptcy Court") pursuant to an order entered by the DE Bankruptcy Court on or about March 28, 2003, and such cases are now pending in the NC Bankruptcy Court under case numbers 03-10358 and 03-10360; AND WHEREAS, the Debtor and Ecusta have been authorized to own, operate and possess the property of the Debtor and Ecusta as debtors -in -possession by virtue of the provisions of the United States Bankruptcy Code; AND WHEREAS, after notices and hearings under the United States Bankruptcy Code, the Debtor has been authorized by an order of George R. Hodges, Bankruptcy Judge for the NC Bankruptcy Court to sell the real estate described in this Deed, and all creditors and other parties in interest in this estate have had proper, prior statutory notice of the consummation of the sale of the Realty (defined below), and there has been full compliance by the Debtor with the United States Bankruptcy Code and the order of the NC Bankruptcy Court entered on July 1, 2003, a true copy of which is attached hereto as Exhibit B, which order of the NC Bankruptcy Court is incorporated herein by this reference. NOW, THEREFORE, in consideration of the premises, and the sum of $20,000.00, the receipt of which by the Debtor is hereby acknowledged, and pursuant to the order of the NC Bankruptcy Court identified above, the Debtor has and by these presents does grant, bargain, sell and convey to the Purchaser all that real estate, including all improvements located thereon, C-83462102_ 17215.00011 2 000183 000767 which is located. in Brevard, Transylvania County, North Carolina, (the "Realty"), and which is more particularly described on Exhibit A attached to and incorporated into this Deed by this reference. This conveyance is made subject to the following: 1. All encumbrances and other matters both of record and not appearing of record, except to the extent the Realty is free and clear of the same by virtue of the order of the NC Bankruptcy Court identified above. 2. All unpaid ad valorem taxes, except as otherwise paid, agreed to be paid or prorated at closing. 3. The condition that the Realty, which includes all improvements located on the Realty, is conveyed "as is, where is" and without any representation or warranty of any kind concerning its physical condition. TO HAVE AND TO MOLD the Realty, and all privileges. and appurtenances thereto belonging, to the Purchaser in as full and ample a manner as the Debtor is authorized and empowered to convey. And the Debtor covenants with the Purchaser, in reliance on the order of the NC Bankruptcy Court identified above, that the Debtor has not created or granted any encumbrances or interest which would be adverse to the Purchaser, and the Debtor has done tif" nothing to impair such title to the Realty as the Debtor received; and the Debtor will warrant and defend that title against the lawful claims of all persons claiming by, under or through the Debtor, except for the specific exceptions stated above. 000183 000768 IN WITNESS WHEREOF, the Debtor has caused this instrument to be signed in its corporate name as duly authorized by the order of the NC Bankruptcy Court identified above, the day and year first above written. RFS US, INC. By: (SEAL) Jim M illan, Authorized Agent pursuant to the Order o the Court attached hereto as Exhibit B STATE OF NORTH CAROLINA COUNTY OF MECKLENBURG This iiA day of 2003, personally came before me Jim McMillan, who, being by me duly sworn, say at he is the duly authorized agent of RFS US, INC_ a Delaware corporation, pursuant to the Order of the U.S. Bankruptcy Court, entered on July 1, 2003, and that said writing was signed by him, in behalf of said corporation, in accordance with the Order of the U.S. Bankruptcy Court entered on July 1, 2003. And the said Authorized Agent acknowledged the said writing to be the act and deed of said corporation. Notary Public OF71ALL My commission expires: 5 -jMC-rM1'-1'--1L0nE in�IREDTY[NOTARIAL SEAL] RETAELxplpW The foregoing Certificate of is certified to be correct. This instrument and this certificate are duly registered at t date and time and in the Book and Page shown on the first page hereof. M . Deputy n �,(1p.14 a mjL County Register of Deeds C-834621v02_ 17215.0011 4 n 000,183 000769 „ EXHIBIT A Being all that 39.44 acre tract or parcel of land located in Transylvania County, North Carolina, shown as Lot 2 on that Special Subdivision plat entitled "Record Map of Lots 1 & 2 (Parcel 1-A)," prepared by Freeland-Clinkseales & Associates, Inc. of N.C., dated June 24, 2003, and recorded in Plat Cabinet 1_, Slide �0 1 in the Transylvania County Public Registry. C-83462102_ 17215.00011 5 oOO183 000770 EXHIBIT B UNITED STATES BAI%M RUPTCY COURT WESTERN DISTRICT OF NORTH CAROLINA ASHEVILLE DIVISION In re: RFS ECUSTA INC. and RFS US INC., Debtors. Chapter 11 Case No.: 03-10360 Case No.: 03-10358 imum lm orl' JUL -1 2003 Jointly Administered SIXTH ORDER.AUTHORIZING THE' SALE:01? SUBSTANTIALLY ALL OF THE DEBTORS' :ASSETS FREE AND .0 xAR OF ALL LIENS; CLAIMS, ENCUMBRANCES, AND OTHER INTERESTS. AND EXEMPT FROM STAMP OR SINffi:AR TAXES; AND THE. COItSU1VIMATION OF ALL.TRANSACTIONS RELATED THERETO; PURSIJANT� TO:BANKRUPTCY CODE SECTIONS 105, 363, AND 1146,AND BANKRUPTCY:RULES 2002; 6064, AND. 6006 The above -captioned debtors and debtors. -in -possession (collectively; the "Debtors"), having filed their fourth motion, dated June 3, 2003.(the "Bulls Sale Motion'), pursuant to H 105 and 363 of Title 11' of the United States Code (the 'Bankruptcy'. Code") for an order. authorizing the sale of substantially all. of the Debtors' remaining assets to New Tech Environmental, Inc. or an entity to be formed by or an affiliate of New Tech. Environmental, Inc. that is assigned the rights of and assumes the obligations of New Tech Environmental, Inc. under the Transaction Docnments'(as hereafter defined) (the "Purchaser"), free and clear of all liens, claims, encumbrances, and other interests, authorizing the Debtors to consummate all transactions related to the above, and granting such other relief as is fair and equitable; and due and proper notice of the Bulk Sale Motion having been given; and all responses to the Bulk Sale Motion having been withdrawn, resolved, or overruled; and after due deliberation and sufficient cause appearing therefor, C-92319305 IT215.00011 3T IS HEREBY FOUND AND DETERMINED THAT: 0 0 Q i " A This Court has jurisdiction to hear and determine the Bulk Sale Motion and all related matters pursuant to 28 U.S.C. §§ 1334 and 157.. Venue of this proceeding in this district is proper pursuant to 28 U.S.C. § 1409, The Bulk Sale: Motion constitutes a core proceeding pursuant to. 28 U.S.C. § 157(b)(2)(A), (13), (N), and (0)•. B. Proper, timely, adequate and sufficient notice ' of the Bulk Sale Motion and the sale of. the Assets (as hereafter defined) was provided pursuant to Bankruptcy Rules 2002, 6004, and 6006, and previous orders of this Court, and such .notice was reasonable, sufficient and appropriate under the circumstances presented.' No other or further notice of the Bulk Sale -Motion or the entry of this -Order is necessary.:.- A reasonable opportunity to object, respond, or to otherwise be heard.'regarding the relief requested in the Bulk Sale Motion has been afforded to :.:. .::.::.:.>::,•;. all interested parties. C. The Debtors::are the.sole and lawful. owners. of all the Assets, -and the Assets, pending the consummation of the sale, hereunder, constitute property of the Debtors' estates pursuant to § 541(a) of the Bankruptcy Code.. D. The Debtors have determined in the exercise of their business judgment, to: (i) sell all of their right;. title, and .interest in and to the .Assets upon the terms and conditions set forth herein; and (ii) .consummate all. transactions contemplated herein and in the Transaction Documents (subject to the provisions in the fourth through sixth decretal paragraphs below). E. The provisions, of §§ 363(b), 363(f), 363(m), and 363(o) of the Bankruptcy Code have been complied with and are applicable as to the Assets. F. The Debtors,. as debtors in possession, (i). have full corporate power and authority to execute the Transaction Documents and all other documents contemplated by the Bulk Sale G828193v05_IT215.00012 2 . 000 i e 2 Motion with regard to the Assets, (ii) have all of the corporate power and authority necessary to consummate the transactions contemplated by the Bulk Sale Motion with regard to the Assets and the Transaction Documents, .and (iii) .have taken all corporate action necessaryto authorize and approve the sale described in the Bulk Sale Motion and the consummation by the Debtors of transactions contem lated thereby. the P G. The Debtors have demonstrated sound business justifications for the sale in accordance with the Bulk Sale Motion •and the Letter. Agreement (as defined below) and the other transactions and actions contemplated, by the Bulk .Sale Motion.with. regard to the Assets pursuant to §.363(b) of the Bankruptcy :Code, outside -of a plan of reorganization, and it is a -reasonable exercise of the.Debtors' business judgment to execute, deliver and consummate the Transaction Documents. with the Buyer and consummate. the transactions coritemplated by the Transaction Documents. H. Consummation of the: sale. of -the. Assets,. as contemplated herein and in. the Transaction Documents is in :the best intefests of the 'Debtors, their estates, creditors, equity security holders, and other parties in.interest. . I. The sale of the Assets is properly authorized;under all applicable provisions of the Bankruptcy Code, including without limitation, §§ . 105, 363, and 1146 of the Bankruptcy Code.; wi<` •';` 7. The sale of. the Assets contemplated herein represents the highest or otherwise best offers received -for the Assets following the conduct of an open and complete sale process (including a public auction) reasonably calculated to yield the highest or. otherwise best offers for the Assets. K. The consideration provided by the Purchaser for the Assets (i). is fair and reasonable, (ii) constitutes reasonably equivalent value, reasonable market value and fair 6.828193v05_ 172L5.00011 3 :M X ,)0'77- 1 consideration for the Assets under the Bankruptcy Code and under the laws . of the United States, any state, territory, possession or the District of Columbia, (iii) is the highest or otherwise best offer for the Assets and (iv) will provide a greater recovery for the Debtors' creditors and other interested parties than would be provided. by any other. practically available alternative. L. The transfer of the Assets to. the Purchaser under the Transaction Documents will be a legal, valid, and effective transfer of the Assets and will, upon the.occurrence of the Closing (as hereafter defined),' vest .in the Purchaser all right, title and interest of the Debtors in the Assets free and clear of -all liens, claims, encumbrances, and other interests, including, without limitation, mortgages,: security'interests, pledges, liens, replacement Heins, judgments, demands, encumbrances, or charges of any. kind qr.nature,.:if any, including, but not limited to, any restriction on -the transfer, receipt of income or other exer'cise­of any attributes of ownership (collectively, "Liens"), and. all. -debts-arising in -.any way in connection with any. acts of the - Debtors, claims (including but not limited to "claims'! as. that term is -defined. in the Bankruptcy - Code), obligations, demands, guarpties, inie'iests,'.apd matters of any kind and nature, -whether arising prior. to or subsequent to the 66 . m . m e . n : cement, of . these. 'Chapter . 11 cases, and whether law,. equity, or otherwise, - including, but not limited to, imposed by agreement, understanding; those relating to taxes arising under or out of, in connection with, or in any way relating to the operation of the Debtors' businesses prior to. Closing (collectively, "Claims"), with all such Liens and Claims, and any and all other interests to attach to the net proceeds of sale (the "Sale - Proceeds") of, and with the same force, effect :and priority as such Liens, Claims and other interests had against, the Assets, and holders thereof shall be permanently enjoined from asserting such against the Assets and the Ppichaser and shall look solely to the Sale Proceeds. t C-M193vO5 17215.000LI 4 000183 00'7'74 M. As a condition to purchasing the Assets, the Purchaser requires that the Assets be sold free and clear of all Liens, Claims and other interests and that it shall have no liability whatsoever for any. obligations of or Claims against .the Debtors, except as may be expressly permitted in the. Transaction Documents. The Purchaser would not enter into the Transaction Documents and consummate the transactions contemplated by the Bulk Sale Motion, thus adversely affecting the Debtors, their estates, and their creditors, if the sale of the Assets to the Purchaser was not -free and clear of all Liens, Claims and other interests of any kind or nature whatsoever, or if the Purchaser would, or in the future could, be liable for any such Liens or Claims and if the transfer of the Assets could:not be -.made under § 363 of the Bankruptcy Code. N. The transfer of the Assets to the Purchaser free and clear of all Liens, Claims and other interests will not result in. any undue_ burden, or prejudice to any holders of any Liens; Claims or other interests sinceall'such Liens and Claims :of any kind or nature whatsoever shall attach to the Sale:Proceeds in the order'oftheirpriority, with the same validity, force and effect which. they now have as against the.Assets, subject to any claims and- defenses the Debtors or other parties may possess with respect thereto. O: The Letter Agreement was negotiated, proposed and agreed to by the Debtors and the Purchaser as parties thereto without collusion, in. good faith, and from arm's-length bargaining positions. The Debtors and the Purchaser have at all times acted in good faith and in accordance with applicable law. The Purchaser is a good faith purchaser for value with respect to the Assets under § 363(m) of the Bankruptcy. Code and will be acting in good faith pursuant to § 363(m) of the Bankruptcy Code in closing the transaction contemplated by the Bulk Sale Motion and the Transaction Documents in accordance therewith.. By reason of the foregoing, upon Closing, the Purchaser will be entitled to all of the protections afforded under § 363(m). G82819MS_ 17215.00011 5 000775 as engaged in any conduct that would cause or permit the Neither the Debtors nor the Purchaser h nder § 363(n) of the Bankruptcy Code. The sale of the Transaction Documents to be voided u Assets approved by this Order is not subject to avoidance pursuant to .§ 363 (n) of the Bankruptcy . Code, and the consideration provided by the: Purchaser for the Assets under the Transaction Do cuments including, upon its execution, the Asset Purchase Agreement) shall be deemed to M1 constitute reasonably equivalent value and fair consideration. ¢ sumed Liabilities (as defined below), the p. Other than with respect to the As y virtue of this Order or the Transaction Documents or the transactions Purchaser shall not b contemplated hereunder or thereunder, be deemed to have "successor'.' liability or responsibility for claims against or obligations, of Debtors arising prior to or as a result. of the purchase and sale of the.Assets hereunder. The sale of the Assets to the Purchaser will maximize the value of the Debtors' estates and is in contemplation of the implementation of a plan of liquidation and necessary to the confirmation and consumrnation of any .such plan. Accordingly, .the sale of the Assets shall be deemed a sale "under,a .plan" within the meaning of § 1146(c) of the Bankruptcy Code and shall'be exempt from any and all .stamp taxes, recording taxes, and similar.taxes, including zeal .property transfer tax, although such without limitation any real estate transf er tax and any LY sales do not constitute a sub rosa plan.of reorganization. The Asset Purchase Agreement is not a - sub rosa Chapter 11 plan for which approval has been sought with the protections that a disclosure statement would afford and is not in violation of creditors'. and equity security interest holders' voting rights. R. The relief requested in this Bulk Sale Motion is reasonable and in the best interests of the Debtors' estates and creditors. A C-828193v!)5_ 17215.00011 6 - cooIS3 000 0'76 NOW, THEREFORE,. IT IS HEREBY: ORDERED that the Bulk Sale Motion is granted; and it is further ORDERED that all responses to the Bulk Sale Motion have been withdrawn or otherwise resolved, or are hereby overruled; and it is further ORDERED that the letter agreement (the "Letter Agreement"), to be entered into by and among the Debtors, the Purchaser, and the Debtors' securedlender in these cases (the "Lender"), a substantially complete draft of which was' attached to the Bulk Sale Motion as exhibit A, is hereby approved; and it is further ORDERED that the Debtors are authorized to negotiate and execute an asset purchase agreement (the "Asset Purchase Agreement,": and together with the Letter Agreement, the "Transaction Documents") with'the Purchaser setting forth the definitive -terms of this sale, subject only to the prior written consent of the Lender and the official committee of unsecured creditors (the •"Committee"), to the form and substance thereof; provided however that the Debtors shall • provide the union representing the Debtors' former hourly employees ("PACE") and the Bankruptcy Administrator for the -Western District- of North Carolina (the "Bankruptcy Administrator") notice and three business. days' opportunity to object to the form of the Asset Purchase Agreement prior to its execution; and it is further ORDERED that if the Debtors and the Purchaser negotiate and execute an Asset Purchase Agreement, and if the Committee and the Lender expressly consent in writing to such Asset Purchase•Agreement prior to its execution, and if PACE and the Bankruptcy Administrator do not timely file an objection to such Asset Purchase Agreement prior to its execution, then the Asset Purchase Agreement is hereby deemed to be approved as of its execution, and will be C-82819MS_ 17215.00011 7 000777 effective and binding on all parties.upon execution thereof without further order of this Court; and it is further ORDERED that in the event that'the Debtors, the Purchaser, the Committee, and the Lender do not agree on the form and substance of an Asset Purchase Agreement, or PACE or the Bankruptcy Administrator timely.files an objection to such Asset Purchase Agreement prior to the execution thereof, this Court willschedule and conduct an expedited hearing thereon at the earliest date available on the C:ourt's calendar; and it is further ORDERED that all of the terms, .conditions, actions, rights, remedies, and obligations contained in each and any: of the Transaction Documents (including, upon its execution, the -Asset Purchase Agreement),.including but not. limited to the funding obligations 'related to the Debtors' operations; the sale of.certain of the Debtors' assets; the use -of cash collateral, and the access to the Debtors' facilities, is hereby. approved and is binding on all parties thereto; and it is further ORDERED that Jim McMiIlan is hereby. authorized- to execute on behalf of the Debtors the Transaction Documents and all other .documents necessary to consummate the transaction authorized in this Order, and it is further ORDERED that so long.as he acts in accordance with the terms of this Order and in the absence of gross negligence or winll misconduct, Jim McMillan (a) shall not be subject to any personal liability for any claims arising . from his participation in the consummation of the transaction authorized iri this Order, (b)'is.hereby released by the Debtors,.TBCC, the Committee and the Purchaser from any such liability; and (c) no party may make a claim against Jim McMillan for any act or. omission !arising in connection with his participation in the consummation of the transaction authorized in this Order; and it is further M1 l G828193vt15_ 17215.00011 : ` - .., ,�°.a• bkY�,b ,c4r o- t#o.<. 8 S` 4.' W. 000183 :..::...:.. ..:...........: . Q007 748 .. ORDERED that within one business day of the entry of this Order, the Purchaser shall pay $50,000 as a good faith deposit (the "Deposit"), such Deposit to be.treated in accordance with Paragraph 6 of the LetterAgreement; and it is further ORDERED that to the extent the .Purchaser identifies one or more of the Debtors' " to be purchased and assigned «Leases . a executory contracts and/or unexpired leases (the ) P . pursuant to the Transaction Documents (including, upon its execution, the Asset Purchase Agreement) and hereto, the • Debtors shall .promptly- file a motion pursuant to § 365 of the Bankruptcy Code for authority to assume such Leases and.assign- them to the Purchaser, and the Purchaser will be responsible for all.cure'costs associated therewith; and it is further ORDERED that oa or before the closing of the sale: (the "Closing"), the Purchaser shall pay to the -Debtors in cash, certified check, wire transfer, or .other immediately available funds _ acceptable to the Debtors, -the Purchase Price (as defined below); -and it is further ORDERED that the Debtors are authorized to sell to the Purchaser all of the Debtors' remaining assets, except for those assets specifically identified in the Transaction Documents as excluded therefrom, "AS IS,' WTMRE IS," without recourse and without any representations or warranties (except as may be .set forth in this Order or the Transaction Documents), for the price (the "Purchase Price"). of $1.3 million, subject to'a potential Purchase Price reduction not to exceed $50,000, as identified in the Transaction Documents, and to consummate the transactions contemplated in the Transaction Documents.(including, upon its execution, the Asset Purchase Agreement) with the proceeds to be. paid by Purchaser at Closing to be deposited into the Debtors' Account No. 001952624378 at First Citizens Bank; and it is further ORDERED that the Debtors are, without any further corporate authorization, authorized to execute and deliver, and empowered to perform under, consummate and implement, the �r 4829193v05_ 37215.00011 9 .. 000183 000179 Transaction Documents (including, upon its execution, the, Asset Purchase Agreement), together with all. additional instruments and documents that may be reasonably necessary or desirable to implement the Transaction Documents (including, upon its execution, the Asset Purchase Agreement),.an . d to take all further actions as may be necessary for the purpose of assigning, transferring, granting, conveying and conferring to the Purchaser or reducing to the Purchaser's possession, the Assets, or as may :be necessary or appropriate to the performance of the obligations as contemplate . d by the Transaction Documents (including, upon its execution, the Asset Purchase Agreement); and -it isfiarther ORDERED that except.as expressly set forth in the Bulk Sale Motion, the Transaction Documents (including, upon. its execution, the Asset Purchase Agreement) or this Order, the Purchaser assumes no employee liabilitiesthat"arose prior to Closing, including any accrued but unbilled liabilities; and it is flaher ORDERED that the transfer of the Ags6ts to the Purchaser pursuant to, and subject to the terms of, the Transaction Documents -(including, upon -its execution, the Asset Purchase Agreement) shall constitute a legal, valid and effective transfer of the Assets, and shall, upon the occurrence of the Closing; -vest in the. PurchaseryursWqlt to §.363(f) of the Bankruptcy Code all right, title and interest of the - Debtors - in. and to the applicable Assets to be acquired -by such Purchaser free and clear of all Liens, Claims and other interests of any kind or nature whatsoever, with all such Liens, Cliaims.and other interests to attach to the Sale Proceeds in the order of their priority, with the same validity, force and ef ect. which they now have as against the Assets, subject to the terms of this Order and the.fights, claims, defenses, and objections, if any, of the Debtors and all interested parties with respect to such Liens, Claims, and other interests; and the holders of such Liens, Claims, and other interests shall be permanently 83 C-828193vO5_ 17215=0 11 10 00 000,780 enjoined from asserting such against the Assets or .the Purchaser and shall look solely to the proceeds of sale; and it is further ORDERED that this Order (a)' shall be effective as a determination that, on the Closing date with respect to -any Assets, and subject to the occurrence of the Closing, all Liens, Claims T Closing as to the Assets n rtoth eCos ' tm s o exls h atsoe ver g natur e w and oth er r intere sts of an Y ki nd or .� P transferred' -on such Closing date pursuant to the Transaction Documents (including but not limited to any claims under any applicable revenue, pension, ERISA, tax, labor, environmental .. or natural resource law, rule or regulation, or any -products ,liability law) have been unconditionally released and terminated as to such..Assets, and that. the. conveyances'described herein have been effected, and.(b) shall be binding upon and shall govern the acts of all entities, including without limitation, .all filing: agents, fling officers; title agents, title companies, recorders of mortgages, 'recorders. of 'deeds, registrars of deeds, administrative agencies, governmental departments, secretaries of state, federal, ;state, and' local officials, and all other persons and -entities who may be required by operation of -law, the ,duties of their office, or contract, to accept, file, register or otherwise record or release any. documents or'instruments, or who may be required to report or insure any title or state of title in or to any of the Assets; and it is further ORDERED that except as. expressly permitted: or otherwise. specifically provided for in the .Transaction Documents (including; upon its. execution,. the Asset Purchase Agreement) or this Order in respect of the Transaction Documents (including, upon its execution, the Asset Purchase Agreement) or the Assets to be.transferred by the Debtors, the Purchaser shall have no liability or responsibility for any liability or other obligation of the Debtors arising under or related to such Assets and, to the extent allowed by law, the Purchaser (and its officers, managers 6829193v05 17215.00011 11 600183 0001781 and members) shall not .be liable for any other claims against the Debtors or any of their predecessors or affiliates, and the Purchaser shall have no successor or vicarious liabilities of any kind or character whether known or unknown as of -the Closing under. the .Transaction Documents (including,• upon its execution, the Asset Purchase .Agreement), -now existing or hereafter arising, whether fixed .or•contingent, with respect to the Debtors or any obligations of the Debtors, other than the Assumed Liabilities, arising prior to the Closing under the Transaction Documents .(including, -upon its execution, the Asset Purchase Agreement), including, but not limited to, any liabilities under any revenue, pension, ERISA, tax, labor, environmental or natural resource law,•iule or regulation; or any products liability. law, arising, accruing, or payable under; out of in connection with, or ih any way relating to the -operation of the Debtors' businesses prior to the Closing; and• it is further. - ORDERED that this Court. retains and. shall have exclusive jurisdiction to endorse and implement the terms and. provisions of this Order, the Transaction Documents, all amendments thereto, any waivers and consents thereunder, and each of theagreements executed in connection therewith in. all respects or the rights and duties of the parties hereunder or thereunder or any issues relating to any .of the foregoing, and to- resolve any. dispute concerning any of the foregoing, including, but not limited to, retaining jurisdiction 'to (a) interpret the terms, conditions and provisions of any of the foregoing, (b) compel' delivery of the Assets to the Purchaser or order the specific performance of any act to. be performed by the Debtors or any other party to consummate the sale, and (c) compel .'delivery of the Purchase Price or performance of other obligations owed to the Debtors by the Purchaser;:and it is further ORDERED that subject to Closing and consummation of the - transaction, each and every federal, state and local governmental agency, recording office or department and all other parties, C•828UM5_ 17215.00011 12 600183 000782 person or entities is hereby directed to accept this Order for recordation as conclusive evidence of the free and clear, unencumbered transfer of title to the Assets conveyed to the Purchaser; and it is fiuther ORDERED that subject to Closing and consummation of the transaction, the provisions of this Order authorizing the sale of the Assets free and 'clear of Liens, Claims and interests (with such Liens and Claims to attach to.the proceeds of the sale of the Assets as provided in this Order) shall be self-executing, and• neither the Debtors, the Purchaser nor any other party shall be required to execute or file releases, termination statements, assignments, cancellations, consents or other instruments to effectuate, consummate and/or implement. the provisions .hereof with respect to. the sale;.. rovid however, that this Paragraph shall not excuse such. parties from performing any•and.ali of.the respective obligations under the Transaction Documents; and it is ... ..:•` ;::.. further ORDERED that if any person :or entity that has filed financing statements, mortgage, mechanic's liens, Us pendens, or other documents or agreements evidencing Liens or Claims against or in the Assets shall not have. delivered to the -Debtors .prior to the Closing date, in proper form for filing and executed by. the appropriateparties, releases; termination statements, assignments, cancellations, consents, instruments of satisfaction, or such other instruments to?> ' effectuate, consummate and/or implement the provisions hereof with respect to the sale with regard to all Liens: and Claims that the person or entity has with respect to the Assets or otherwise, the Debtors or the Purchaser are hereby authorized and directed at Closing to file with any federal, state or local governmental agency, recording office or department and all other parties, persons or entities this -Order as conclusive evidence of the free and clear, unencumbered C-828193,,05_ 17215.00011 13 • r'. .. , . ' GoOJ83 000'783 transfer of title to the Assets conveyed to the Purchaser. to effectuate, consummate and/or implement the provisions hereof with respect to the sale of the Assets; and it is further ORDERED that consummation of the Transaction Documents (including, upon its execution, the Asset Purchase Agreement) and the transactions contemplated therein and thereby do not effect a de facto merger or consolidation of any, Debtor and the Purchaser or result in the continuation of the Debtors' business under the Purchaser's control. The Purchaser is not the alter ego of, a successor in interest -to, or a continuation. of:the Debtors, nor is the Purchaser otherwise liable for the Debtors' debts and obligations, unless specifically provided for in the Transaction Documents or pursuant to this Order,- and it is further ORDERED that all entities that are presently, -or on the Closing date may. be, in possession of'some or all of the Assets are hereby directed to surrender possession of the Assets to the Purchaser on the Closing date for. such Assets; and it is further ORDERED that. nothing contained in any. plan of reorganization (or .liquidation) confirmed in these cases .or the order of confirmation confirming any such. plan shall conflict with or derogate from the provisions. of the Transaction Documents (including, upon its execution, the Asset Purchase Agreement) or the terms of this Order;. and it is further. ORDERED that the reversal or modification on appeal of the authorization provided any Assets shall not affect the validity of the sale of such herein to consummate the sale of Assets to the Purchaser, unless such authorization is duly stayed pending such appeal prior -to the Closing date with -respect to such Assets; and it is further ORDERED that notwithstanding anything herein to the contrary, nothing herein shall in any way affect or diminish any rihts of the Debtors or any successor thereto (including any g chapter 11 or. chapter 7 trustee) with respect.to obligations of the Purchaser arising under the GS28193v05_ 17215.00011 - 14 G: Y C'� . f. i� i - Transaction Documents (including, upon its execution, the Asset Purchase Agreement) or this Order. The terms and provisions of the Transaction Documents (including, upon its execution, the Asset Purchase Agreement) and this Order shall be binning in all respects upon, and shall inure to the benefit oiy the Debtors, their estates, and their creditors, the Purchaser and their respective affiliates successors and assigns and any affected third parties (including, but not aims in the Assets to be sold to the Purchaser), limited to, all persons asserting Liens or Cl notwithstanding any subsequent appointment of .any trustee(p) under any chapter of the Bankruptcy Code, as to which trustee(s) such -terms and provisions likewise shall be binding; and it is further ORDERED that -in furtherance of the. foregoing,. in the event of the -conversion of the Debtors' cases, any Chapter'7 trustee(s)shall. be obligated to perform under the Transaction . Documents (including, upon its execution, the Asset'Purchase Agreement) -to permit the Debtors' estates to realize the full value. of the- sale toi-the Purchaser and to permit the Purchaser to consummate the transactions provided -in -and. contemplated. by the Transaction Documents (including, upon its execution, the Asset Purchase Agreement); and the Transaction Documents (including, upon its execution, the Asset Purchase; Agreement) shall not be executory contracts their res ective successors s is <.;'s'•<>': that such trustee(s) can reject, and the.Purchaser and the Debtors, and p shall be entitled to the remedy of specific performance so as to be permitted to consummate the transactions provided in and contemplated by the Transaction Documents, as permitted under applicable non -bankruptcy law; and it is further ORDERED that the Transaction Documents (including, upon its execution, the Asset Purchase Agreement) and -any related agreements, -documents or other instruments may be modified, amended or supplemented by the parties in accordance with the terms thereof, without '�:. •:fib 1: '>"•� `.i,;:+i',:f."r:�f ' - - �,-`f�:vrf r .4o.«tifi<•>ja'<4-�. iG ' - i;ta':•l c saa1eaAs_ 17215.10011 15 0a0:.84)oo-iss further order of the Court, provided that any such modification, amendment or supplement does not have a material adverse effect on the Debtors' estates and is, if occurring prior to the Closing date, approved by counsel for each of the Debtors, the Purchaser, the Committee and the Lender; and it is further ORDERED that all of the Debtors' interests in the Assets to be acquired by the Purchaser shall be; as of the Closing date and upon the occurrence ofthe Closing, transferred to and vested in the Purchaser. Upon the occurrence of the Closing, this. Order shall be considered and constitute for any and. all purposes a full and complete -general assignment, conveyance and transfer of the Assets acquired by the Purchaser at such Closing under the Transaction Documents (including, upon its execution, the Asset Purchase Agreement) and/or a bill of sale or assignment transferring ;good and marketable; indefeasible title and interest in the Assets acquired by the Purchaser under the Transaction Documents. (including, upon its execution, the Asset Purchase • Agreement) to the Purchaser; and it is.further. ORDERED that as of the'Closing date, thePurchaser shall be hereby granted immediate and unfettered access to the Assets acquired by the Purchaser; and it is further ORDERED that if the Purchaser fails to pay the Deposit as set forth above, or breaches. any other or further obligation hereunder, under 'the Letter Agreement, or, following its execution, under the Asset Purchase: Agreement, (A) all rights of the Purchaser to the Assets shall be immediately waived and/or .terminated, and.(B) the Debtors may sell by private sale or public auction; at their discretion, the Assets to another purchaser or purchasers pursuant to the terms and conditions of the Expedited .Sale Order (as defined in the Bulk Sale Motion) or any further or other order of this Court; and'it is further G828193v05_ 17215.00011 16 Is. ()00183 000786 Op consummation of the sale, the Purchaser shall assume, ORDERE D that immediately upon all liabilities and obligations in and relating to the Assets purchased by it hereunder (except for the Liens, Claims, and other interests that are transferred and released by the terms hereof), and. . those liabilities explicitly identified in the Transaction.Documents, (including, upon its execution, the Debtors shall have no other or eement) as assumed liabilities, and the Asset Purchase Agr :j further obligations or liabilities related thereto; and it is further ORDERED that the provision in Bankruptcy. rule 6004(g) staying an order authorizing the use, sale, or lease of property until the e:kpiratiori.of ,.10 days afterentryof such order is hereby waived; and it is -further ORDERED that pursuant to § 1146(c) of the Bankruptcy Code, the. making delivery, related transfer documents and (ii) any and all filing, or recording 0 (i) any deed, assignment Or hereunder, arid'under� the Transaction Documents other instruments of conveyance OF transfer.he - orn d - shall: not be taxed under any Federal, (collectively. "Conveyances"), are :exempt ft an.. p tax, transfer tax, or similar tax, including, State,%or local law imposing -a recording,tax;'stalrk without limitation, transfer and recordation taxes applicable to deedsand assignments of leases, including.wit . hout limitation the any real estate transfer tax and any real property transfer tax authorized and d.. recording. officers are hereby (collectively "Transfer Taxes"). All filing an or filing, and record or file *immediately upon presentation directed to accept for recording il thereof, the Conveyances, without the payment of any such Transfer Taxes and without the requirement or presentation of any affidavit or form with respect to any Transfer Tax regarding rnmental authorities or -taxing authorities shall be permanently the Conveyances. All gove enjoined from commencing or -maintaining any action to collect from the Purchaser, the, Debtors, from the transfers to be effectuated under the or the Assets any Transfer Taxes arising 17 =9193A5 17215-00011 000787 Transaction Documents, and this Court retains jurisdiction to enforce the foregoing direction, by contempt or otherwise; and it is further ORDERED that .the. Debtors .be, and hereby are, authorized to consummate the sale contemplated hereunder without the necessity of complying with any state or local bulk transfer requirements; and it is further ORDERED that the failure specifically to include any particular provisions of the on its execution; the Asset Purchase Agreement) in this Transaction Documents (including, up Order. shall not diminish or impair the efficacy of such prd-visions, it being the intent of the Court that such documents are approved in their entirety. Dated: Charlotte, North Carolina June 2003 (Dated &s of date Ordered) • Chief United States Bankittptc . Judge D Mike Cody RFS Ecusta, Inc. PO Box 200 Pisgah Forest, NC Subject: NPDES COC # NCG120014 RFS Ecusta Inc.(1 Ecusta) Compliance Schedule Correction Transylvania Dear D Mike Cody: huu 11 LUVV It recently came to the Division's attention that the compliance schedule in the NCG120000 permit is incorrect. The compliance refers to requiring a Stormwater Pollution Prevention Plan which is not a requirement of this permit. The corrected compliance language that should go under Part III, Section A: 1. is shown below. We have also attached a new page reflecting this change for your permit file (Part III page 1 of 11). This new page should replace the current page in your permit. SECTION A: COMPLIANCE AND LIABILITY 1. Compliance Schedule The permittee shall comply with the permit in accordance with the following schedule: Existing Facilities: Upon the effective date of the Certificate of Coverage the permittee shall comply with all of the conditions detailed in Part II, Section A: Final Limitations and Controls for Stormwater Discharges. New Facilities: Upon the beginning of discharges from the operation of the industrial activity the permittee shall comply with all conditions detailed in Part II, Section A: Final Limitations and Controls for Stormwater Discharges. If you have any questions concerning this matter please contact Aisha Lau at (919) 733-5083, ext. 578. cc: Stormwater and General Permits Unit Asheville Regional Office Central Files NCDENR Customer Service 1 800 623-7748 Sincerely, f"Alan W. Klimek, P.E. Division of Water Quality 1617 Mail Service Center Raleigh, NC 27699-1617 (919) 733-7015 �O Gv r_ b al ~i Michael F. Easley Governor William G. Ross Jr., Secretary North Carolina Department of Environment and Natural Resources Alan W. Klimek, P.E. Director - -_Division of Water Quality July 31, 2003 :1 Will Sagar Transylvania County AUG 4 J 2Qo3� r 500 Howell Road 1Brevard, NC 28712 Subject: NPDES COC # NCG120076' _ Transylvania County Landfill Compliance Schedule Correction Transylvania Dear Will Sagar: It recently came to the Division's attention that the compliance schedule in the NCG120000 permit is incorrect. The compliance refers to requiring a Stormwater Pollution Prevention Plan which is not a requirement of this permit. The corrected compliance language that should go under Part III, Section A: 1. is shown below. We have also attached a new page reflecting this change for your permit file (Part III page 1 of 11). This new page should replace the current page in your permit. SECTION A: COMPLIANCE AND LIABILITY 1. Compliance Schedule The permittee shall comply with the permit in accordance with the following schedule: Existing Facilities: Upon the effective date of the Certificate of Coverage the permittee shall comply with all of the conditions detailed in Part II, Section A: Final Limitations and Controls for Stormwater Discharges. New Facilities: Upon the beginning of discharges from the operation of the industrial activity the permittee shall comply with all conditions detailed in Part II, Section A: Final Limitations and Controls for Stormwater Discharges. If you have any questions concerning this matter please contact Aisha Lau at (919) 733-5083, ext. 578. cc: Stormwater and General Permits Unit Asheville Regional Office Central Files NCDENR Customer Service 1 800 623-7748 Sincerely, / � f"Alan W. Klimek, P.E. Division of Water Quality 1617 Mail Service Center Raleigh, NC 27699-1617 (919) 733-7015 Fax Iro; Fax:. F Phone: Ro: C'.omin Requested 57a p.i E usta Business Development Center Environmental Operations William J. Ashbroo& Becker 5rom: Director, Envirorirncnt2tl Operations Tel. 828 / 884-5544 Fax 828/884-9766 c-mail: "w.ic hbrookg)ecusta,com'I 51-6452 Numbor3 including this one Pages Gate: 9/18/2003 CC., �I Sorry it took s� long; when we moved a lot of Stull• go . misplaced. P1CaSe. Note,; The information coutuined in this facsimile message is privileged and c:onfidential and is intended only for the use of the individual or entity named above and others who have been specifically authorized to receive it_ Tf you are not the intended recipient, you are hereby notified that any dissemination, distribution or copying of this communication is strictly prohibited. If you have received the COMMUnicatiob in error, or if any problems occur with transmission, please notify us inunediately by telephone. Tha ik you Sep 18 03 11:57a State of North Carolina Department of Environment and Natural Resources Division of Water Quality Michael . Easley, Governor William _ Doss Jr., Secretary Gregory . Thorpe, Ph.D.,Acting Director April 23, 2002 1). Mike ody RFS Ecus a, Inc. (NC 1533) PO Box 2 )0 Pisgah Fo est. NC 28768 ,IT 1 .WFMh%q WOW% NCDENR NORTH CAR01,INA DEPARTMENT OF ENviRONMENT AND NATURAL RCSOURCC$ Subject: Acknowledgement of Rescission Reyuo-tit RFS Ecusta, Inc. (NC 1533) NPDE.S Permit No. NCG120015 Transylvania County Deity Mr. ¢ody: This i , to acknowledge receipt of your request that NPDES Permit No. NCG12UU15 be rescinded-- Your request indicated that this permit is no longer needed. By copy of this letter, 1 am requesting confirmation From our Asheville Regional Office thai this permit is no longer needed. After verification by the Regional Office that the permit is no longer, needed!, NPDES Permit No. NCG 120015 will be rescinded. If the c is a need for any additional information or clarification, please do not hesitate to contact ohcrt. Farmer at (919) 733-5083, ext. 531. Sincerely, ikl E. Shannon Langley, Supervisor Point Source Compliance/ Enforcement Unit cc: Ashc illc Water Quality Regional Supervisor - Wattachments Paint 3ourco Branch - Bradley Bennett - w/attachments Point 3ource Branch - Robert Farmer - Wattachments Central Files- w/aWichments 1617 Mail Serviceponter, Raleigh, North Carolina 27699-1617 Telephone 919-733-5083 FAX 919-733-9919 An Equal pp"unity Affirmative Action Employer 50% rocycled/ 10% post-consumor paper M r & TOU 'rTON PERMIT COVERAGE �SUSSION REQUEST FORM I National I'c)Ililtant Uisebarge Elimin:itjon .System ytormwatelr General Perilk NCG120000 RFS IiC:US`['A, INC. (NC 15 33) OX NllIII her NCU 120015 Transylvania County The following ;s the carefully and make izillonnalion currently in our datahnso for your facility. Please rcv;ew this inRtnnation corrections i n ibrrrl:It ion. -'ill as ncccssar,Y in llle sparse provided to the richl of• the current For OlRe Urn F;1Gilily Name: 1tFS li(:[ISTA.INC. (NO 1Si3) 0.1❑ Mailing Address*: M BOX 2m PISOAH 14OR +S-r, N(' 2R708 l,0catiot) Address; N UI' N(' 1533 ANt) L' OF 1.51 ❑ YISGA111 ORUS'I', NC 23761 _ __.. _ — ❑ Farilily C.'.()n1�tcl: I)MIKY.CODY Phonc Number: 7048772347 — ❑ °ax Nutnhcr: No panther on file ❑ I', -;hail addrem, No address on IIlc y"' — dN��.�c s�cl►�.C�, ❑ ❑ *This is Ilu: address to which all I)ornlit e:orresp()ttdencc will he mailed Rca%,)Il for rm:ission r(:clttc:st: — t?G.[�1. �� A+*e'. axg REQUEST AND ciamvicAroN I, as an authorized re Permit NCGi 1200M for rescmativc, ttarcby requcsl i-mcission of covur,•lge under NPT)I;S Stormwalcr Ocneral tite slrh act L•lcillly. T aln familiar will) the infortttation CUntl)ned in lu the heq of my a<:nn Ilus request and that vI'd"c stld h,: lief ouch ; ft tl )rnullu)n is rruc, cotnnit,fc and accur:He, Signtlturc -- —. 1)aIC3 Print or ty C rlalne ol'person si��f�ih; above Title Please return this rOscissseal rcquesl and arty relevant documentation 10: General Permit (:ovcra�e ltescissieru Attn: Valc•ry Stephrn,,; Stctr•rtml(c:r and G?oncral Pernlits till;( 1617 Mail Service C enit:r Raleigh, North Carolina 27699- 1617 FQr Oflirn Il.^,a Qnl Rcwh;;R J4 I M kryucxt I>ulc ❑ p.3 tate Vf �qvr (Earnfin x err of $Iwrk ROY COOPER Suite 300 Western Office ANorneyGeneral 124 College Street Phone: (828) 251-6083 Asheville, NC 28801 Fax: (828) 251-6338 FACSIMILE TRANSMISSION COVER SHEET Note: The information contained in this facsimile message is confidential information Intended only for the use of the individual or entity named below. If the reader of this message Is not the intended recipient, you are hereby notified that any dissemination, distribution or copy of this telecopy is strictly prohibited. If you have received this telecopy In error, please Immediately notify us bytelephone and return the original message to us at the address above via United States Postal Service. Thank you. DATE: July 26, 2003 TO: Forrest R. Westall Division of Water Quality Asheville Regional Office FAX NUMBER: 251.6452 FROM: Sueanna P. Sumpter Assistant Attorney General Attorney General's Western Office SUBJECT: Ecusta, Operating Costs Estimates NUMBER OF PAGES INCLUDING COVER SHEET:" 10 COMMENTS: Forrest, attached are the last couple pages ofyour 20 March 2003 affidavit, filed in DENR's adversary proceeding (related to Ecusta°s bankruptcy action), along with Exhibit F, spreadsheets provided by Mike Cody. Sueanna 10 l0'd SV:qL COOZ GZ Inf 8CC9-19Z-8Z2 xed 391AA0 M N39 11U well as the terms and conditions of the permits issued to DWQ and the Division of Waste Managw►ent f- fail to properly n.....�...,.� manage, and maintain the wastewater collection' a4d treatment. systems on site; fail to provide continuous sources .of electrical power; fail to provide qualified. staff to operate and monitor the systems; fail to properly remove and dispose of hazardous wastes on site; or fail to properly de*water the new ash landfill; there is - a reasonable probability .of imminent harm to the waters of the State of North *Carolina, a.nd ' isimtinent' .dazzger to the public health, safety, and welfare. 33. I. have reviewed the debtor's fixings in this Court, ixicludi'ng their Motion for an Order Authorizing Funds for Full Compliance With Environmental Regulations and Permits (Dooket No. -156) and exhibits thereto,. I have also reviewed. cost estimates provided to this agency thin month by -defendants' eavironmental staff at the mill. sate. Copies of spreadsheets provided to the agency by defendants' staff are. attached; marked as "Exhibit E," and incorporated by reference herein. Eased upon that review -and fey own knowledge of the site and. wastewater collection and .. treatment systems, and amakizig reasoned assumptions where data was not available or had not yet'been developed,'X have estimated the costs-aasociated with operation and maintenance of the. wastewater collectionand treatment systems on the site. '-14- . ZO'd SV:VL £OOZ 9Z Inf 8££9-L9Z-HO:xei 301AA0 A NIS 11V These cost estimates do not include expenses associated wizen ar,osur'e ofl the island o& new ash' ],dfills, or management and disposal of hazardous wastes now located on the mill site, or. removal and proper disposal of radioactive materials on -the site, or other activities required to achieve compliance with those environmental programs administered and enforced by agencies within DUNR other than the DWQ'. Purther, these estimates do not include. costs necessary to deal with protection or xemediation of surface and groundwaters in the event of an unauthorized discharge to those waters of conts=ination from building roofs, construction materials, or solid or hazardous wastes. 55. Assuming the mill site does not resume production, the total tirst,�year costs aegociated'with temporary stabilization and operation of the wastewater collection and treatment, systems.'are estimated to ,be $6,285,072..60. Perpetual costs for properly collecting, treating, and disposing of wastewater on the mill Mite are estimated to be 41,264,598.10. annuallSr. These eati3mates' are ,subject to --revision upon development of more definite data. Further affiant saith not. -15- 88'd 9V:U1 800Z 8Z Inf 9H9-19Z-8Z8:X6d 301Jd0 A N39 liV ..Regional..Water 'Quality supervisor Division o� Water Quality. Sworn -to and s'ybsori ed before, me, this the ''day of March, 2 03. otary P l�.c My' CoExpire.- (SEAL). -16- VO 'd 9V:Ul 600Z 9Z InP 8s E9-19�-8Z8:Xe� 3OI JO � NIO lld Item Conamons montmy Electricity $20,000.00 Chemicals & Equipment $1,400.00 Maintenance $465,75 Generators °° $36,000.00 Security $141000.00 . Site Personal Environmental $15,000.00 Repair $0,000.00 Office Supplies, Pagers; $250.00 Crab Testing $2,167,00• Total . $95,282.75. 90'd 9V:VL EOOZ 9Z Inf EXHIBIT F 8E89-19Z-8Z8��e� 301AJ0 A NIO 11V CLOSURE COSTS SUMMARY Site. Closure Costs Ash Landfill $730,370 (See Ash Landfill worksheet) Process Landfill $1,374,215 (See Process Landfill worksheet) Sludge Landfill $4,399,040 (See Sludge Landfill worksheet) $6,503,625 Note; Closure costs do not include long term monitoring and maintenance F XHIBIT C 90"d 9V:V[ EOOZ 8Z Inf 8889-19Z-8Z8:Xe3 3013JO A N39 11U Ecusts Lgndfill.Cia$ure 3/20/03 S6eo & Maher Engineers, Inc. /A`.d IV:VL unz nz InP GU9-19Z-H9:Xe9 391JA0 M N39 liV TASK UNITS QUANTITY UNIT COST PRICE 1 MOBILIZATION ' LS 1 $ 10,000.00 $ 10,000.00 .2 EROSION CONTROL LS 1 $ 5,000.00 $ 5,00.0.00 3 SILT FENCING LF 2,000 $ 3.50 $ 7,000.00 4 REGRADE WASTE DAYS 12 $ 1,200.00 $ 14.400,04 5 LIGHTWEIGH-T FILL. PLACEMENT (4-) CY 100,000 $ 10,00 $ 11000,000,00 (Off -site Source) 6 GEOGAID 5F 663,400 $ 1.00 $ 653,400.00 .7 50-MIL GEOMEMBRANE . SF 663,400 $ 1.00 $ 553,400.00 8 DRAINAGI: LAYER (12" - #78M) CY 24,200 $ 20.00 $ 484,000.00 9 PLACE 18" COMPACTED SOIL. CY 36,300 $ 10.00 $ 363,000.00 (from off -site source) 10 PLACE 6" VEG6TATIVE SOIL CY 92,100 $ 14.00 $ 169,400A0 (from off-3he source) 11 LANDFILL PIPING 12" LF ' .4,000 $ 38.00 $ 140,000.00 12 ' LANDFILL PIPING 6" LF 10,000 $ 20.00 $ 200,000.00 13 SEED,MULCH,LIME & PERT UNIT 670 $ 40.00 $ 26,800.00 TOTA 3,725,400.00 10% CONTINGENCY $ 372,646.00 ENGINEERING DESIGN & BID $ 150,000.00 ENGINEERING OVERSIGHT AND RA/QC $ 150,000.00 ENGINEERS ESTIMATE $ .4,399,040.00' Note: Assumes 4' lightweight fill with geogrid over Waste, 60-mil geomembrane, 124nOhes #78M stone, 18-inches of Compacted Common Borrow and 6-inches of vegetative layer. Piping System placed within lightweight fill and #78 stone is HOPE of 6 and 12-Inch diameter SDR 11 pipe. All quantities are In place measure. Ecusta Landfill Closure 3/20/03 80"d LV:Vl OOOZ SZ InP Sevee & Mahar Engineers, Inc. 8OE9-19Z-8Z8 Xe3 301330 A N30 IiV TASK UN T9 L QUANTITY UNIT COST I PRICE 1 MOBILIZATION LS 1 $ 10,000.00 $ 10,000.00 2 EROSION CONTROL/SEDIMENT TRAP LS 1 $ 5,000.00 $ . 61000.00 3 " SILT FENCING LF 6,000 $ 3.50 $ 21,000.00 4 EROSION CONTROL BLANKET SY 3,000 $ 2.00 $ 6,000.00 5 REMOVE EXISTING TOPSOIL (6") CY 18,760. $ 5.80 $ , 108,760.00 6 . REGRADE WASTE DAYS 12 $ 1,200;00 $ 14,400,00 7 PLACE 18" COMPACTED SOIL CY 55,250' $ 10.00 $ 582,500.00 (from aff-site source) .8 PLACE 6" VEGETATIVE SOIL CY 18,750. $ 14.00 $ 262,600,00 (from off -site source) 9 ' ROADWAY FABRIC SY 51500 $ 2.00 $ 11,000.00 10 ROADWAY SUBBASE CY 2,000.. $ 20.00 $. 40,000.00 11 ROADWAY BABE CY 2,100 $ 25.00 $ 52,600.00 12 SEED,MULCH,LIME & PERT UNIT 11050. $ 40.00• $ 421000,00 TOTALS 1,135,650.00 10% CONTINGENCY $ 113,665.00 ENGINEERING DESIGN & BID $ 25,000.00 ENGINEERING OVERSIGHT AND QAIQC $ 100,000.00 ENGINEERS ESTIMATE $ . 1,374,216.00 Note; Assumes. all waste fill .areas capped with 18" Barrier Soil and 6" Vegetative Layer, -Seeded and Mulched All quantities are in place measure.. Ecusta Landfill Closure 3l20/03 60 'd LV: V l EOOZ 8Z I n r Sevee & Maher Engineers, Inc. 8889-15Z-$ZB:xed 3OIdd0 A N30 IiV TASK UNITS QUANTITY UNIT COST PRICE' 1. MOBILIZATION LS 1' $ 10,000.00 $ 10,000.00 2 EROSION CONTROL LS 1 $ 2.000.00 $ 2,000.00 3 REMOVE EXISTING TOPSOIL CY 11,000 $ 5.80 $ 63,800,00 (from existing cover) 4 REGRADE WASTE DAYS 12 $ 1,200.00 $ 14,400,00 5 PLACE 18" COVER SOIL CY 33,750 $ 10.00 $ 337,500.00 (from off -site source) 6 PLACE 6"VEGETATIVE SOIL CY 1.1,260 $ 12.00 $ 136,000.00 (from off -site source) :7 SEED,MULCN,LIME &'FERT UNIT 600 $ 40.00 $ 24.000.00 TOTALS 586,700.00. 10% CONTINGENCY $ 58,670.00 ENGINEERING DESIGN & BID $ 25,000;00 ENGINEERING•QV.ERSIGHT• AND QA100 $ $0;000.00 ENGINEERS ESTIMATE. $ 730,370.00• Nate. Assumes all ash fill areas capped with 18" Barrier Soil end 6" Vegetative Layer, Seeded and Mulched All quantities are in place measure. Ecusta Landfill Closure W20103 0I'd 9V:Vl 600Z 8Z Inf Sevee & Maher Engineers, Inc. 9H9-I.H-8Z8:xed 301dd0 A N39 11U State of North Carolina ROY COOPER Department o(Justice, ATrORNEY CE"WRAL R 0. Box 629 RALEIGH Phone; .919/716-6600 Fax- 919/716-6767 X C 0 V I E I I S I E -E T- TO: D n, n I e-. y.1 qe4l"", FROM: W--, - I L C'Ec, DATE: —3 QS RE: rA A,4,::�— NUMBER OF PAGES (Including transmittal sheet)- 13 CON -FIRM RECEIPT OF DOCUMENT(S) IF MARKER HERE- 3 200' ROY COOPER ATTORNEY GPENERAL State of North Carolina Department of Justice R O. BOX 629 RA[ SIGH 27602-0629 September 3; 2003 Williarn W. Toole, Esq. Robinson Bradshaw & Hinson 101 North Tryon Street, Suite 420 Charlotte, North Carolina 28246 REPLY TO, James C. Gulick Environmentaf Division jgulick@mail_jus_state.nc.us Telephone: 919171 "600 Fakc 919R16.6767 Via e-mail and facsimile to 704.373.3973 Markus R. Mueller, Esq. Corporate Counsel and Secretary P-H. Glatfelter Company 96 South George Street, Suite 500 York, PA 17401 Via e-mail and facsimile to,717.846.2419 Re: "Ecusta Site" (the "Site") Pisgah Forest, North Carolina Dear Bill and Markus: Prior to the closing of the purchase of the mill by Ecusta Business Development Center and its affiliates, we had what I thought were some fairly useful meetings to discuss how the various environmental issues at the site might be addressed. Both of your clients (through you) expressed willingness to perform certain work, and/or pay money, in relation to the site's environmental challenges, and for that we are appreciative. Unfortunately, since the purchase both your clients appear to have taken a harder line with one another. In our view, global resolution is in the interest of all concerned; Glatfelter, so it oan limit its liability, ESDC; so the requisite permits and approvals can be garnered and a Brownfieids Agreement signed, and the State, so the environment can be protected. .We believe it essential that negotiations be resumed at once with the purpose of negotiating a division of responsibility for work to be performed at the site. We would like negotiations to resume no later than next week and to be concluded by October 1, 2003. In our (the States) ideal world, your clients could make that division without us. However, recognizing that is unlikely, we are prepared to be an active participant, along with your clients and their environmental consultants of choice, in the negotiations. We ad to make available necessary staff and offices for meetings in Raleigh for Pe. Here are the topics we view as needing to be addressed in this manner: • closure, post -closure care and ground- and surface -water monitoring of the process island landfill; .• closure, post -closure care and ground- and surface -water monitoring of the ash and sludge landfills, including collection and treatment of the ash landfill leachate, whether or not the pulping operation is resumed; • closure of the ASB, including post -closure care and ground- and surface -water monitoring if needed;. assessment, and remediation if any is necessary, of the caustic, mercury and any other non -landfill contamination resulting from releases and/or disposal at the site; storage, handling and disposal of hazardous materials remaining on -site from prior operations. Please respond to this letter by Tuesday, September 9, 2003..Thank you. Sincerely, V IV es C. Gulick for Deputy Attorney General cc: Daniel C. Oakley Dexter Matthews Bruce Nicholson Forrest Westall Robert Gelblum Bonnie Sawyer ROBINSON BRADSI-HAW & HINSON WILLIAM W. TOOLE CHARLOTTE OFFICE August 21, 2003 Via Overnight Mail Markus R. Mueller P.H. Glatfelter Company 96 South George Street Suite 500 York, PA 17401-1434 DIRECT DIAL: 704.377,a373 DIRECT FAX: 704.373.3973 WTOOLE@RBH.COM Re: Demand for Environmental Response at former P.H. Glatfelter Company ("Glatfelter") Site located in Pisgah Forest, North Carolina Dear Mr. Mueller: As you know, this firm represents New Tech Environmental, Inc. ("New Tech") .and Ecusta Business Development Center, LLC ("EBDC"). On August 8, 2003, EBDC purchased out of bankruptcy certain assets of RFS Ecusta Inc. and RFS US Inc., including the former P-H. Glatfelter manufacturing and disposal facility located in Pisgah Forest, North Carolina (the "Site"). Glatfelter used the Site for the disposal of large quantities of wastes containing hazardous substances at three separate and significant locations. New Tech's environmental investigation, which New Tech shared with you and your team on June 20, also -identified additional caustic and mercury contamination above applicable standards and for which Glatfelter is liable. The United States Environmental Protection Agency, the United States Department of Justice, the North Carolina Department of Environment and Natural Resources ("DENR"), and the North Carolina Attorney General, as well as the North Carolina Governor's Office, have also taken direct action to investigate and respond to these areas. New Tech has incurred significant costs to respond to Glatfelter's disposals, releases, and threats of releases. The response costs incurred include: $150,000 to investigate the Site; over $490,000 to operate environmental systems necessary to control releases and threats of releases at the Site; and. legal fees to respond to the environmental conditions for which Glatfelter is liable under federal, state and common law. EBDC will continue to incur costs of .response after August 8, 2003, including costs to: cover. the three landfills located on the Site; control and treat ash landfill leachate; investigate and respond to caustic and mercury contamination-, and conduct additional investigation as the federal and state agencies may deem appropriate. New Tech and EBDC have made concerted efforts to engage Glatfelter in a reasonable resolution to environmental problems that have attracted national attention as well as intense C-832014v03 17/215.000II Attorneys at Law _ Charinrre Office: 101 North Trvon Sr-. Suite 1900. Charlorre- NC. 24246 Ph- 7n4 ,77 ?S,f, 12 - 704 ;7a Annn Mr. Markus R. Mueller August 21, 2003 Page 2 federal and state interest. Glatfelter has yet to offer a reasonable long-term solution. -New Tech and EBDC are coming to the unpleasant conclusion that Glatfelter prefers to delay addressing its environmental obligations, following an established pattern of ignoring environmental obligations that dates to at least 1990. New Tech and EBDC set out below one last effort to involve Glatfelter in a resolution of these issues. They also set out the essential features of Glatfelter's liability so that there will be no doubt as to their intent if a resolution to these matters cannot be, found. We trust that Glatfelter will not misinterpret as weakness efforts by EBDC and New Tech to find cost- effective, mutually acceptable resolutions to the environmental problems at the Site. I. New Tech and EBDC have no liability for the existing environmental conditions at the Site_ New Tech has no liability under the Comprehensive Environmental Compensation and Liability Act ("CERCLA') because it never owned or operated the Site. EBDC has no liability under CERCLA because it is a bona fide prospective purchaser. 42 U.S.C. § 9607(r)(1); 42 U.-S.C. § 9601(40). EBDC has made all appropriate inquiries into the previous ownership and uses of the facility and shared those results with. Glatfelter. This investigation determined that disposals of hazardous substances at the facility occurred before the acquisition by EBDC. As required by law, EBDC must exercise appropriate care with respect to the hazardous substances found at the facility. 42 U.S.C. § 9601(40)(D). EPA has issued a letter outlining the minimum care that is appropriate at this site. See Correspondence from Winston A Smith,. Director, Waste Management Division, EPA Region IV to William W. Toole dated July 24, 2003 ("Due Care Letter"). "Appropriate care" does not require EBDC to remove contaminated soil or treat contaminated groundwater. "Interim Guidance Regarding Criteria Landowners Must Meet in Order to Qualify for Bona Fide Prospective Purchaser, Contiguous Property Owner, or Innocent Landowner Limitations on CERCLA Liability,"'. pp. 9-10. EBDC's costs to perform this minimum level of care are recoverable costs of response. Because neither EBDC nor New Tech have any liability under CERCLA, both are entitled to recover their costs of response_,. jointly and severally under § 9607 from Glatfelter or any other previous owner- and operator of the Site. See Axel Johnson, Inc. v Carroll Carolina Oil Co., Inc., 191 F.3 d 409 (4th Cir. 1999). II. Glatfelter is liable to investigate and cleanup the environmental problems at the Site, and to reimburse all costs — past, present and future - incurred by New Tech and EBDC to investigate and respond to -environmental. problems at the Site. Glatfelter is obligated under the Resource Conservation and Recovery Act ("RCRA') to properly investigate and cleanup the environmental problems at the Site, including immediate closures of the three landfills, at its sole expense. 42 U.S.C. § 6972(a). Glatfelter contributed to the disposal of solid waste that presents animminent and substantial endangerment to health or C-8320I4v03 17715.00011 Mr: Markus R. Mueller August 21, 2003 Page 3 the environment. An endangerment is a "reasonable cause for concern that someone or something may be exposed to a risk of harm if remedial action is not taken." Adams v. tVT/R Homes, Inc., 135 F_Supp.2d 675, 688 (D.Md. 2001), quoting Foster v. U.S., 922 F.Supp. 642, 661 (D.D.C.1996). EBDC need only show there is "a risk of harm, a more lenient standard than the traditional requirement of threatened irreparable harm." U.S. v. Waste Industries, Inc., 734 F.2d 159, 165 (4th Cir. 1984) (interpreting same provision in 42 U.S.C. § 6973). EBDC is entitled to recover from Glatfelter its costs of litigation, including attorneys' and expert witness fees. 42 U.S.C. § 6972(e). See, e.g;, Dague v. City of Burlington, 732 F.Supp. 458, 472 (D.Vt. 1989) (ordering landfill closure where leachate collection system "approximately 90% effective"; ordering payment of attorney and expert witness fees to plaintiffs). Glatfelter is also at risk for civil penalties of up to $25,000 per day. 42 U.S.C. §§ 6928(g), 6972(a).. If it must do so, EBDC will force Glatfelter to take the actions necessary to deal with environmental problems on the Site. New Tech and EBDC are also entitled to collect all costs of response — past, present and future they have incurred in this matter. New Tech has spent more than $640,000 to .conduct necessary environmental investigation and maintain essential environmental operations at the Site since May 19, 2003. "[A]ny person who at the time of disposal of any hazardous substance owned or operated any facility at which such hazardous substances were disposed of ... shall be liable for ... all other necessary costs of response incurred by any other person consistent with the national contingency plan." 42 U.S.C. § 9607(a)(2),(4)(B). Glatfelter was an owner and - operator of the Site at the time that hazardous substances were disposed in the three landfills, �on the ground and in the groundwater at the Site. "Disposal" includes migration and leaking through soil and groundwater as well as the initial deposit of a hazardous substance. Nurad, Inc. v. William E. Hooper & Sons Co., 966 F.2d 837, 845-46 (4th Cir.), cent. denied 113 S.Ct. 377 (1992). New Tech need not show that Glatfelter's waste particularly caused the contamination addressed by their response costs. U.S. v. Monsanto Co., 858 F.2d 160, 169-70 (4th Cir. 1988). The concentration of those hazardous substances is irrelevant; any, amount is sufficient to establish Glatfelter's liability for response costs. U.S. v. Alcan Aluminum Corp., 990 F.2d 711, 720-21 (2nd Cir. 1993). New Tech's environmental investigation costs, expenses incurred to control and treat leachate migration, and prevent public access to the Site, as well as to enforce a response from Glatfelter and others, are recoverable response costs. 42 U.S.C. § 9601(25). EBDC and New Tech also have claims against Glatfelter under the North Carolina Oil Pollution and Hazardous Substances Control Act, 15A N.C. Gen. Stat. § 143-215.83 et seq., as well as at common law. The time and money that would be spent on such litigation, however, is better spent focusing on solutions to the environmental conditions at the Site. C-83201403 17215.00011 Mr. Markus R. Mueller August 21, 2003 Page 4 III. New Tech and EBDC are willing to negotiate a reasonable resolution to this matter. New Tech and EBDC are willing to negotiate a reasonable resolution of Glatfelter's liability in this matter. Their proposal, by area of concern, is as follows. A. Glatfelter must close and monitor the process island landfill. Glatfelter must immediately close and monitor the process island landfill because Glatfelter was an owner and operator at the time of disposal. EBDC is prepared to provide .logistical support on a contract basis to be negotiated, if desired by Glatfelter. B. Glatfelter guarantees to North Carolina the proper closure of the ash and sludge landfills. Glatfelter, as an owner and operator at the time of disposal, is responsible for the closure of the ash and sludge landfills. These landfills, like the process island landfills, contain hazardous substances. Glatfelter is liable for closing these landfills now. If Glatfelter prefers to defer these costs, and perhaps avoid them altogether, EBDC is prepared to market the pulp operation, ash and sludge landfills as a going concern. Marketing the pulp operation as a going concern will require Glatfelter to guarantee to North Carolina the proper closure of these landfills. If Glatfelter prefers to close the ash and sludge landfills immediately, then EBDC would convey them to.Glatfelter upon terms and conditions to be discussed. C. Glatfelter must respond to the caustic and mercury contamination to the satisfaction of state and federal authorities. The caustic spill occurred prior to Glatfelter's sale to RFS Ecusta. By letter dated June 12, 2003, DENR stated that further investigation of the caustic spill is necessary. The obligation to investigate and respond to this caustic spill is Glatfelter's, and EBDC expects Glatfelter to conduct the investigation and cleanup required by DENR. Glatfelter has similar responsibility for the mercury contamination assaciated with the electrochem building and also found in the nearby drainage ditches. EBDC expects Glatfelter to conduct the investigation and cleanup required by federal and state agencies to address this identified contamination. EBDC is willing to place institutional controls over the area of contamination and so attempt to limit agency demands for further investigation or cleanup.. r C-832014v03 17215.00011 Mr. Markus R. Mueller .August 21, 2003 Page 5 D. Glatfelter must reimburse New Tech for the response costs that New Tech has incurred to date. New Tech has incurred over $150,000 to conduct environmental investigation at the Site, and over $490,000 for costs to maintain environmental operations at the Site. In addition, New Tech has incurred substantial attorney fees to investigate and enforce this matter. New Tech will agree to offset these amounts, however, with the amount that New Tech owes Glatfelter under the Environmental Cost Sharing Agreement between Glatfelter and New Tech dated May 16, 2003, and the Amendment to Environmental Cost Sharing Agreement between Glatfelter and New Tech dated June 16, 2003. E. GIatfelter must pay for the costs of collecting and treating the ash landfill leachate. Glatfelter designed and installed in 2000 a system to collect and treat Ieachate from the ash landfill. This system must be maintained on an ongoing basis and is a cost of response for which Glatfelter is liable. EBDC expects Glatfelter to either undertake directly the operation and maintenance of this system or reimburse EBDC for operating and maintaining the system. F. Glatfelter is responsible for additional investigation and response, if needed, as required by environmental agencies. To the extent that state or federal agencies require additional investigation or response, EBDC will look to Glatfelter to conduce the additional investigation and response. In the interest of promoting a settlement, New Tech and EBDC are making no claim at this time for response costs associated with managing the hazardous materials, including hazardous wastes,. that Glatfelter left on site when it sold the facility to RFS Ecusta. EBDC has not made any claim, at this time, for the costs associated with preventing the release or threat of release of asbestos containing materials or maintaining radioactive wastes and materials. Each of these costs, as set out in the Due Care Letter from EPA, are costs of response under CERCLA recoverable from Glatfelter. If no settlement can be arranged, EBDC will seek these costs from Glatfelter as well. Glatfelter cannot escape its obligations under federal and state law; it must respond to environmental matters at the Site in a responsible manner. To find a mutually satisfactory resolution of this matter, New Tech and EBDC are willing to forgo some of their claims. Neither, however, is willing to accept Glatfelter's environmental obligations. New Tech and EBDC strongly urge Glatfelter to adopt a cooperative approach that allows the parties to jointly address the environmental problems at the Site. C-832O14vO3 17215.GOO11 Mr. Markus R. Mueller August 21, 2003 Page 6 In recognition of the time that will be involved to prepare a satisfactory written agreement memorializing settlement, I attach a tolling agreement providing forty-five days to enter a final written settlement agreement. If you find everything in order, please execute where indicated and return the executed original to me. Best personal regards. Sincerely, ROBINSON, BRADSHAW & HINSON, P.A. , 'i/ William W. Toole cc: New Tech Environmental, Inc. Ecusta Business Develoent Center, LLC Mr. James C. Gulick Blake W. Thomas C-832014vo3 17215.00011 TOLLING AGREEMENT THIS TOLLING AGREEMENT ("Agreement") is entered into as of the 22nd day of August, 2003, by and between New Tech Environmental, Inc. ("New Tech") and Ecusta Business Development Center, LLC ("EBDC"), on the one hand, and P.H. Glatfelter Company ("Glatfelter"), on the other hand. Hereinafter, New Tech, EBDC and Glatfelter shall be collectively referred to as the "Parties." In consideration of the mutual covenants and promises contained herein, the Parties agree as follows: 1. The Parties each agree to toll, from August 22, 2003 until the earlier of (a) the effective date of termination pursuant to notice as provided in paragraph 4 below or (b) October 6, 2003, inclusive (the "Tolling Period" ), the running of any statute of limitations or repose, lathes or other time -related defenses or arguments (such statutes, lathes, defenses or arguments, collectively, hereinafter "Time -Based Defenses") with respect to any causes of action, lawsuits or claims that any Party or Parties may have against any other Party or its subsidiaries, affiliates, parent corporations, employees, agents, officers or directors (such causes of action, lawsuits or claims, hereinafter "Claims"). Each Party agrees that the Tolling Period shall not be considered for purposes of any computation with respect to any Time -Based Defenses to any Claims. 2. Each Party expressly waives and agrees not to assert any Time -Based Defenses to any Claims to the extent such Time -Based Defenses are based on delaying to assert Claims or commence suit during the Tolling Period. 3. Each Party agrees to forbear commencing any lawsuit or taking any legal action against another Party or its subsidiaries, affiliates, parent corporations, employees, agents, officers or directors until the termination of the Tolling Period. 4. Any Party may terminate the Tolling Period by giving prior written notice to the other party to this Agreement by certified or registered mail of its intention to do so, with the termination of the Tolling Period being effective 5 days after successful delivery of such written notice. Any such notice shall be mailed to: For New Tech or EBDC: William W. Toole Robinson, Bradshaw & Hinson, P.A. 101 North Tryon St., Suite 1900 Charlotte, North Carolina 28246 For Glatfelter: Markus R. Mueller . P.H. Glatfelter Company 96 South George Street Suite 500 York, PA 17401-1434 5. Nothing contained herein shall be construed as a release of any rights, claims, crossclaims, or counterclaims of any Party, it being the Parties' intent to preserve all such rights and claims. 6. It is understood and agreed by the signatories that this Agreement: (a) Does not constitute and shall not be construed as an admission against or as a waiver of any position presently available to any signatory hereto; and — .1- —1. n1 1Tf<1V1/111 (b) Shall not be used as support for an argument, whether legal or factual, or as evidence in any action or proceeding for any purpose other than the enforcement of the terms hereof. 7. This Agreement shall be binding upon and inure to the benefit of the Parties hereto and their successors and assigns. 8. This Agreement may be modified by mutual consent in writing, signed on behalf of all Parties. 9. This Agreement constitutes the entire agreement between the Parties regarding the tolling of Time -Based Defenses. 10. This Agreement may be executed. in counterparts, each of which shall be deemed an original, and all of which, when taken together, shall constitute a single agreement. Faxed signatures shall have the same effect as originals. WHEREFORE, the parties hereto hereby execute this Agreement as of the day and year indicated above. NEW TECH ENVIRONMENTAL, INC. Printed Name: Title: ECUSTA BUSINESS DEVELOPMENT CENTER, LLC Printed Name: Title: P.H. GLATFELTER COMPANY Printed Name: Title: C-837491,01 17215.00011 '� -• STATE OF NORTH CAROLINA INI COUNTY OF TRANSYLVANIA, STATE OF NORTH CAROLINA, ) ex rel., WILLIAM G. ROSS, JR., ) SECRETARY, NORTH CAROLINA ) DEPARTMENT OF ENVIRONMENT ) AND NATURAL RESOURCES, ) Plaintiff, ) V. ) RFS ECUSTA, INC., a Delaware ) Corporation, and RFS US, Inc., ) a Delaware Corporation, ) Defendants. ) MAY 2 0 �UO3 JUDGMENT .i• THIS MATTER COMING ON TO BE HEARD and being heard before the undersigned Judge Presiding over the 19 May 2003 civil session of the Superior Court for Transylvania County, North Carolina, upon the plaintiff's motion for default judgment and it appearing to the Court as follows: 1.. The plaintiff, State of North Carolina, ex rel. William G. Ross, Secretary of the North Carolina Department of Environment and Natural Resources ("DENR"), commenced this action on 21 October 2002 by filing of a verified complaint and issuance of civil summons. 2. This action is for injunctive relief and has been brought pursuant to N.C.G.S. H 130A-18, 130A-294, 143-215.6C, and 143B- 279.1. The plaintiff has sought both preliminary and permanent injunctive relief requiring the defendants to comply with those statutes and rules of the State of North Carolina enacted and promulgated for protection of the environment of this State, all as described in the, plaintiff's verified complaint filed in this matter. -2- 3. The defendants were duly served with the summons and complaint on October 22, 2002. 4. The Court entered a Preliminary Injunction by Consent on 9 December 2002. 5. The defendants have failed to plead in response to the plaintiff's complaint and their default was entered by the Clerk of Superior Court for Transylvania County on 19 March 2003. 6. Defendants. are not infants, incompetent persons, or otherwise under disability. 7. The plaintiff's motion for entry of default judgment and notice of hearing for same were duly served upon the defendants on 28 March 2003. BASED UPON THE FOREGOING FINDINGS OF FACT, the Court makes the following CONCLUSIONS OF LAW: 1. By failing to answer the plaintiff's verified complaint, the defendants have admitted the material allegations contained therein. 2. The plaintiff's complaint states a good cause of action for injunctive relief. IT IS, THEREFORE, ORDERED, ADJUDGED, AND DECREED as follows: 1. Defendants shall immediately take any and all measures necessary to prevent an unlawful discharge of wastewater to the waters of the State or deposit of wastewater onto the land surface, and to fully comply with all permits issued by the Division of Water Quality ("DWQ") authorizing operation of wastewater treatment facilities and discharges from certain of those facilities; to ensure the structural stability of the ash landfill, to fully comply with permits issued by the Division of Waste Management ("DWM") for the ash and island landfills, and to protect ground and surface water quality from the migration of contaminants from said. landfills; to protect public health. and the environment from the risks of fire, explosion or release of hazardous waste and substances; including but not limited to the following as required to comply with environmental lawsor permits: -3- A. continuously maintain electrical service sufficient to properly operate any and all systems and equipment on site associated with wastewater (including stormwater) collection, treatment, and monitoring. This shall include all systems and equipment associated with drainage, landfill dewatering, and pumping and treating of landfill leachate and groundwaters at the new ash landfill; B. continuously maintain sampling and laboratory analysis required by the water quality permits ,held by the defendant RFS Ecusta; C. provide viable back-up power sources sufficient to provide adequate standby power for proper operation of any and all systems and equipment on site associated with wastewater (including stormwater) collection, treatment, and monitoring. This shall include all systems and equipment associated with drainage, landfill dewatering, and pumping and treating of landfill leachate and groundwaters at the new ash landfill; D. maintain laboratory and other environmental services, such as collection and analysis of effluent discharged into the waters of the State; E. timely file the self -monitoring reports required by the DWQ permits; F. maintain all records required by the water quality permits and make such continuously available to the plaintiff for inspection; G. maintain sufficient, qualified staff on site, or retain qualified outside consultants or engineers, to ensure proper operation and maintenance of all environmental systems, and timely reporting and communications to the DWQ regarding wastewater treatment issues; H. properly operate and maintain all components of the wastewater treatment systems in compliance with the water quality permits held by the defendant RFS Ecusta, and further maintain the dike of the ASB in compliance with 1XIM the Dam Safety Act and implementing rules so as to prevent any unlawful release of wastewaters into the waters of the State; I. timely sample ground and surface water at the Ash, and Island landfills on a semi-annual basis, timely submit laboratory analytical data to the Division of Waste Management, and undertake groundwater assessment and corrective action as may be required at each of the landfills; J. install final cover on the island landfill, as required by 15A NCAC 13B § .0500, installation to begin.within 30 days of entry of this injunction and to be completed, graded, and seeded with native grasses within 60 days; K. maintain a source of water sufficient to ensure that the mechanical, water -fed seals on process chemical tanks do not fail; L. in the event the defendants do not either resume manufacturing operations at the Ecusta mill site or sell the facility to a buyer with plans to resume manufacturing operations at the facility: 1. Within thirty (30) working days after the defendants have knowledge _ that. manufacturing operations will not be resumed at the facility, they shall submit to the DENR for its approval a proposed plan for closure of all permitted wastewater facilities and all components thereof, and shall thereafter complete closure of these facilities in accordance with an approved plan and within a reasonable time to be established by the DENR; 2. close the new ash and island landfills within the time provided by the rules adminstered by Division of Waste Management and in accordance with closure plans approved by the Division of Waste Management in accordance. 15A N.C. Administrative Code 13B .0505. Closure is to begin within thirty (30) days -5- after defendants have knowledge that manufacturing will not be resumed at the facility. M. comply with all applicable rules governing the management of hazardous waste at the site. Specifically, RFS Ecusta must to the extent required by environmental laws or permits: 1. perform, in accordance with the method set out in 40 CFR 262.11, waste determinations on all solid wastes to determine if any such wastes are hazardous wastes; 2. manage all hazardous waste being accumulated at the site in containers and tanks, and manage such waste in accordance with all applicable regulations as specified in 40 CFR 262.34. 3. maintain and operate the facility so as to minimize the possibility of a fire, explosion or any unplanned sudden or non -sudden release of hazardous waste or hazardous waste constituents to air, soil, or surface water which could threaten human health or the environment. 4. maintain the facility so as to ensure the continued operation and effectiveness of all alarms, sprinklers and other fire suppression devices. 5. retain qualified personnel, trained in accordance with the requirements of 40 CFR 265.161, to ensure compliance with the Hazardous Waste Rules and the Courts Orders. 6. ensure that all materials and/or wastes are removed from product or raw material tanks, vessels, pipelines, or process units prior to any interruption of electrical power or prior to ambient air temperatures reaching temperatures which will affect the integrity of such tanks, vessels, pipelines or units. Conduct daily inspections of all product or raw material tanks, vessels, pipelines, or process units. 7. provide a complete list of all materials and chemicals remaining at the facility. 8. perform waste determinations, in accordance with the method set out in 40 CFR 262.11; on all wastes remaining in product or raw material storage tanks, transport vehicles or vessels, or in pipelines, manufacturing units or associated non -wastewater - treatment -manufacturing units, when such wastes exit.. the unit, within a reasonable time to be determined by the DENR and manage all solid wastes determined to be hazardous wastes 'in accordance with the requirements of 40 CFR 262.34(a), adopted by reference at 15A N.C. Admin. Code 13A .0107. 9. RFS Ecusta shall provide written documentation sufficient to support any claim that certain materials are unused and unadulterated raw materials or products, which will be used in manufacturing processes at the Ecusta Mill, or will be sold for beneficial use by a third party or returned to vendors for resale. RFS Ecusta shall provide written documentation sufficient to support any claim that certain materials, including materials remaining in pipelines and manufacturing units, are being used or reused, and are capable of being used or reused, in an on -going manufacturing process at the Ecusta Mill. RFS Ecusta must support its claim that such materials can and will be recycled in a manner that will exclude the materials from the definition of solid waste pursuant to 40 CFR 261.2 (c) , (d) and (e) . 10. within the time allowed in 40 CFR 262.34, arrange for the removal, transport and delivery of all hazardous waste at the site to a permitted hazardous waste storage, treatment or disposal facility, and submit to DWM copies of all manifests associated with such removal, transport and delivery. -7- 11. maintain all records required to be retained by 40 CFR 262.40 and 15A N.C.A.C. 13A .0107(d), and make such documents continuously available to the plaintiff for inspection. 2. The Court will retain jurisdiction of this case after entry of this Permanent Injunction to enforce compliance with its terms and conditions, resolve disputes, and take any action necessary or appropriate for its interpretation, construction, execution, or modification. During 'the term of this Injunction, any party may apply to the Court for any relief necessary to construe or enforce it. 3. Nothing in this Permanent Injunction shall relieve Defendants of their obligation to comply with all applicable federal, state and local laws and regulations. Nothing contained in this Injunction shall ,be construed to prevent, alter or limit the State's rights to seek or obtain other remedies or sanctions available under federal, state or local environmental statutes or regulations, by virtue of Defendants' violation of this Injunction or of the statutes and regulations upon which it is based, or for Defendants' violations of any applicable provision of law. 4. This Permanent Injunction shall' be enforceable by and through the contempt powers this Court, pursuant to Chapter 5A of the North Cr lina General tutes. This the day of May, 20�3.. 1 HONO E DEN IS J. WINNER SUPERIO COUR°I':JUDGE PRESIDING RFS ECUSTA, INC et. al. Sales Approved 4-4-03 Buver Description Price SCHWEITZER-MAUDUIT INTERNATIONAL, INC. BLACK CLAWSON WINDER (PRINTING PRESS #6) $ 5,000.00 (1) GOEBEL SC1350 OPTIMA (1996) MICROPROCESSOR CARTIERA DEL MAGLIO S.P.A. CONTROLLED SIMPLEX CENTER SURFACE SLITTER REWINDER (#6) - 53" MAX. WEB 1,500 METERS/MINUTE MAX SPEED, HYDRAULIC DRIVE (1) GOEBEL SC1350 OPTIMA (1995) MICROPROCESSOR CONTROLLED SIMPLEX CENTER SURFACE SLITTER REWINDER (#6) - 53" MAX. WEB 1,500 METERS/MINUTE MAX SPEED, HYDRAULIC DRIVE (1) GOCKEL G50WSP MICROPROCESSOR CONTROLLED $ 410,000.00 SLITTER MASTER KNIFE GRINDER METRO AUTO SALES, INC "92" FORD AEROSTAR VAN $ 300.00 METRO AUTO SALES, INC "92" CHEVY STATION WAGON $ 500.00 METRO AUTO SALES, INC SULLAIR TOWABLE AIR COMPRESSOR MODEL $ 500.00 185DP02WJD METRO AUTO SALES, INC "85" FORD F-800 FLATBED W/ CRANE $ 7,000.00 METRO AUTO SALES, INC "88" INTERNATIONAL MODEL 1654 $ 1,000.00 METRO AUTO SALES, INC "97" FORD LN800 FLATBED $ 8,000.00 METRO AUTO SALES, INC GMC "84" MODEL 2500 VAN $ 150.00 METRO AUTO SALES, INC "87" DODGE MODEL 150 PICKUP $ 150.00 METRO AUTO SALES, INC "68" CHEVY MODEL 100 VAN $ 150.00 METRO AUTO SALES, INC "81" FORD E150 VAN $ 150.00 METRO AUTO SALES, INC "86" GREAT DANE TRAILER $ 300.00 METRO AUTO SALES, INC "86" GREAT DANE TRAILER $ 300.00 METRO AUTO SALES, INC CONTENTS GARDENING/LANDSCAPE SHOP (1) SNOW $ 200.00 BLOWER, (1) PWR BRUSH, ASSORTED HAND TOOLS No p�`i � -' , TINSLEY'S SAW MISC. GENERAL EQUIPMENT IN UPPER END MAINT SHOP $ 4,000.00 INCL DRILL PRESS Page t of 3 RFS ECUSTA,INC RFS US INC RF & SON INVENTORY M&E IP $ 5,000.00 $ 410,000.00 $ 300.00 $ 500.00 $ 500.00 $ 7,000.00 $ 1,000.00 $ 8,000.00 $ 150.00 $ 150.00 $ 150.00 $ 150.00 $ 300.00 $ 300.00 $ 200.00 $ 4,000.00 p ask 4VL 141B 74 /� s -e G S 7 � J JCS %/J % (I � iJ l � �G�.w YZ� / ��� � •� I L � �t 'C �i � �! � (J� l/r L�Cr�� —/ tic �P J (/0� -� a� �� a�e Picvac-tea a�,�- GJa, /C C4.4°'/ / keZ 6 /`l� i✓ �Ivv�- //"l L v✓cc f/. i V RFS ECUSTA, INC et. al. Additional Bids Not Yet Presented To Court RFS ECUSTA,INC RFS US INC RF & SON Description Price INVENTORY M&E IP ROBINSON MTN, BBQ MICROWAVE, SS TABLE, ASSORTED POTS AND PANS, SLICER, CHOPPER, CART $ 1,200.00 $ 1,200.00 '�c SILVERS BROTHERS (1) TOYOTA FORKLIFT TRUCK b�3 $ 2,000.00 $ k-e & 2,000.00 LAUGHTER ORCHARDS (1) TOYOTA FORKLIFT TRUCK 17b $ 2,500.00 $ 2,500.00 Z(?,VV 1 LAUGHTER ORCHARDS (I) TOYOTA FORKLIFT TRUCK $ 2,500.00 $ 2,500.00 ROGERS MASONARY (1) TOYOTA FORKLIFT TRUCK/ ll Z $ 3,500.00 $ 3,500.00 CAFETERIA EQUIPMENT & FURNITURE C/O BLUE CHAIRS', MIXER, -FRYER, STEAM COOKER, HOT HOOD, ANCHOR BAPTIST GRILL, TOASTERS, BREAD WARMER, (2) $ 1,500.00 $ 1,500.00 REFRIGERATORS, SINKS, (2) WARMERS, (2) WALK IN BOXES, PICNIC TABLES, TABLES, ETC ANCHOR BAPTIST KOMATSU FORKLIFT TRUCK S 9 $ 4,500.00 $ 4,500.00 (1) WIDE WEB ELECTROSTATIC PERFORATOR W/ ,--TANN PAPER, LTD. ELECTRODE CARRIER W/ DRAWINGS $ 8,000.00 $ 8,000.00 TANN PAPER, LTD. (1) TRIAL SIZE PRESS IN R&D ROOM $ 2,500.00 $ 2,500.00 ANN PAPER, LTD. (1) BOBBIN REWINDER W/ CORE FLUSHER $ 2,500.00 Q $ 2,500.00 bMCCCALL FORKLIFT (1) NISSAN FORKLIFT TRUCK 0 0 �S 1 $ 5,000.00 $ 5,000.00 —,,d4tcCALL FORKLIFT (2) METAL BINS $ 200.00 $ 200.00 19CCALL FORKLIFT (1) TENANT SWEEPER S 1,500.00 $ 1,500.00 "��VV//,MUNDET, INC. CIGARETTE PAPER (APPROX. 78,000 LBS; $ 20,000.00 $ 20,000.00 a --ATLANTIC PAPER & FOIL CORP (1) NASH VACUUM PUMP ON PM#r $ 5,000.00 $ 5,000.00 ATLANTIC PAPER & FOIL CORP (1) KOMAT q r" SU FORLIFTS W/ FORK; $ 5,000.00 $ 5,000.00 G ATLANTIC PAPER & FOIL CORP (2) SWECO SIFTERS (�(k f s4V C L �j� p n� $ 6,000.00 $ 6,000.00 ANTIC PAPER & FOIL CORP (2) CARTS $ 2,000.00 $ 2,000.00 V ANTIC PAPER & FOIL CORP (1) VERTICAL PRESS $ 500.00 $ 500.00 NEWSTECH NY (1) JAGENBERG WINDER/SLITTER $ 25,000.00 $ 25,000.00 NEWSTECH NY (1) SONOCO CORE CUTTER WX; C EQUIPMENT BY PM'S# 10 & 11 y�% e C( (y / S 5,000.00 $ 5,000.00 U�A G' �d Y ✓rt! : C 1 41�C (/LQ L- Page 1 of 1HNJ EUUSTA, INC et. al. Additional Bids Not Yet Presented To Court Buyer Description RFS ECUSTA,INC Price INVENTORY /L PHARMACEUTICAL (55) BOBBINS 29646 PLUG WRAP 27.5MM X 650( $ 557.70 $ E PHARMACEUTICAL 557.70 ,/LE/� (35) BOBBINS 29646 PLUG WRAP 27.OMM X 600( $ 321.65 $ 321.65 qj JIM NEWAN r V (1) NISSAN FORKLIFT TRUCK 6 2 3.� I $ 2,000.00 �/I �GLE SHEET, INC. j0J BEARINGS IN STORE INVENTORY PURCHASED AS IS IN BULK $ 16,000.00 CZ� RRY VIDEX(( 4VL f l Z (3) BLACK CLAWSON ~20,000.00 HYDRAULIC ROLL SPLITTERI $ u - PERRY VIDEX (1) HORIZONTAL BAILING PRESS $ 9,000.00 1/0 y„u' +� �RE Y VIDEX (1) JAGENBERG SLITTEWREWINDER $ 20,000.00 PERRY VIDEX —PERRY (2) KROFTA SAVEALL; $ 20,000.00 VIDEX (1) BLACK CLAWSON PRESSURE SCREEN $ 8,000.00 PERRY VIDEX (1) BLACK CLAWSON ULTRA II PRESSURE SCREEN $ I1,000.00 r \til CAN -AM MACHINERY - 0— (2) TRIPPLE BANK DSM SCREEN: $ 8,000.00 CAN -AM MACHINERY (1) SINGLE BANK DSM SCREEN 9 $ 2,000.00 �j --CAN-AM MACHINERY (1) BLACK CLAWSON PRESSURE SCREEN4I V L $ 8,500.00 /R'JIF-PACKAGING (5) RECLAIM MACHINES $ 7,500.00 R PACKAGING CORE (10) FLUSHERS $ 1,500.00 _LANTIC PAPER & FOIL CORP (1) BELOIT JONES DD4000 REFINER PM#I $ 15,000.00 ATLANTIC PAPER & FOIL CORP (3) GOULDS MODEL 3175 PUMPS $ 6,750.00 ATLANTIC PAPER & FOIL CORP LOT OF LABORATORY EQUIPMENT $ 17,500.00 -ANALYTICAL LAB (R&D' FISHER SCIENTIFIC BALANCE (2) ELECTRONIC BALANCES FISHER SCIENTIFIC INCUBATOR -PAPER STRUCTURE L A,B (R&D) FISHER SCIENTIFIC BALANCE ELECTRONIC SCALE BLUE M INCUBATOR METTLER BALANCE H-E -PHYSICAL TESTING LAB (R&D. (2) MACBETH LIGHT BOXES Page 2 of 4 RFS US INC RF & SON M&E TP $ 2,000.00 $ 16,000.00 $ 20,000.00 $ 9,000.00 $ 20,000.00 $ 20,000.00 $ 8,000.00 $ 11,000.00 $ 8,000.00 $ 2,000.00 $ 8,500,00 $ 7,500.00 $ 1,500.00 $ 15,000.00 $ 6,750.00 $ 17,500.00 RFS ECUSTA, INC et. al. Additional Bids Not Yet Presented To Court Buyer Description (2) STRIP CUTTERS FISHER SCIENTIFIC BALANCE HUNTER LAB OPTICAL SENSOR HERCULES SIZING TESTER THWING ALBERT TEAR TESTER -PHYSICAL TESTING LAB (MILL EMVICO MICROGAUGE W/PC & PRINTER HERCULES SIZING TESTER 2-INSTRON TENSILE TESTERS THWING ALBERT TENSILE TESTER ELMENDORF TEAR TESTER MULLEN TESTER PHOTOVOLT REFLECTION METER TMI MODEL 549 MICROMETER (3) STRIP CUTTERS I� PERRY VIDEX (2) STARCH COOKERS PERRY VIDEX .L (3) BJ 3000 REFINERS"K L D I PERRY VIDEX (9) BJ RE) INERS (OLD SIDE) PERRY VIDEX (4) BJ REFINERS W/4160 VOLT MOTORS PERRY VIDEX (1) SPARE MOTOR 3 CAN -AM MACHINERY, INC. (1) BJ 3000 REFINER (PM#12) ­LB'Drake & Associates LOT CONTENTS OF PRINT SHOP C/C BAUMFOLDAR PAPER FOLDEF KROY DESK -TOP LETTERING SYSTEM SOUTHWORK FOOT OPERATED PAPER PUNCH CHANDLER & PRICE LETTER PRESSES (2) PEERLESS HOT FOIL STAMPER DAVIDSON DUPLICATOR MODEL 50( DAVIDSON DUPLICATOR MODEL 501 MULTIGRAPHICS DUPLICATOF MIEHLE 1- COLOR OFFSET PRESS LAWSON PAPER DRILI CHALLENGE PAPER CUTTER CHAMPION WIRE STRETCHER MISC EQUIPMENT _"i-c—Drake & Associates (3) PAPER CUTTERS C/O POLAR-MOHR HYDRAULIC PAPER CUTTER-61' SAYBOLD HYDRO-CUTTER-85' SAYBOLD SABER IV-65' Page 3 of 4 Price RFS ECUSTA,INC RFS US INC RF & SON INVENTORY M&E IP $ 1,000.00 $ 1,000.00 $ 15,000.00 $ 15,000,00 $ 63,000.00 $ 63,000.00 $ 66,000.00 $ 66,000.00 $ 500.00 $ 500.00 $ 5,500.00 $ 5,500.00 $ 10,000.00 $ 10,000.00 $ 40,000.00 $ 40,000.00 RFS ECUSTA, INC et. al. Additional Bids Not Yet Presented To Court RFS ECUSTA,INC RFS US INC RF & SON Bu .er INTERNATIONAL, INC Description Titanium Dioxide (Approx. 75,000 lbs.) $ Price 16,077.00 INVENTORY M&E IP /11�HWEITZER-MAUDUIT $ 16,077.00 ` CAN -AM Machinery, Inc. (3) Nash Vac Pumps (2-4001, 1-6001 Calcium Carbonate) $ 14,500.00 $ -AM Machinery, Inc. Reel w/ reel spools (On PM#8) 5,000.00 14,500.60 $ 5,000.00 V— CAN -AM Machinery, Inc. Hydropurge Screen 12,500.00 $ 12,500.00 CAN -AM Machinery, Inc. Nash 2000 Vac Pump (In Shop by PM#9) 2,000.00 $ 2,000.00 /2""an & Co. Inc. 111.86 Tons Excess Broke, CPO & Pulp Sub $ 10,626.70 $ 10,626.70 man & Co. Inc Fork Lift Usage $ 1,300.00 $ ore Paper Company Printing/Specialty Paper (Approx. 614.527 Tons) $ 230,140.36 $ 230,140.36 1,300.00 ore Paper Company Bowne Paper Inventory (Approx. 955.589 Tons) $ 357,868.08 $ 357,868.08 $ 1,130,541.49 $ 635 591.49 $ 494 950.00 $ Page 4 of 4 C STATE OF NORTH CAROLINA IN THE GENERAL COURT OF JUSTICE r.` SUPERIOR COURT DIVISION COUNTY OF TRANSYLVANIA FILE NO. 03 CVS 098 STATE OF NORTH CAROLINA, )_ ex-rel., WILLIAM G. ROSS-; JR: ) SECRETARY, NORTH CAROLINA ) DEPARTMENT OF ENVIRONMENT ) AND NATURAL RESOURCES, ) Plaintiff, ) V. ) ANCEFIN LTD, a corporation of ) the United Kingdom, ) Defendant. ) PRELIMINARY INJUNCTION i THIS MATTER CAME ON TO BE HEARD at the 7 March 2003 Session - of the Superior Court for Transylvania County, North.Carolina, upon the plaintiff's motion for preliminary injunction. The plaintiff was present and represented by its counsel`. The defendant was properly served with notice of this hearing, but did not appear. Upon consideration of the plaintiff's verified complaint, the affidavit of Jesse Wells filed therewith, testimony of the plaintiff's witnesses, and the arguments of counsel, the Court finds and concludes that there is reasonable cause to suppose the plaintiff will be able to prevail on the merits of this action, there is reasonable apprehension of irreparable harm to the public health, safety and welfare unless interlocutory injunctive relief is granted, and the plaintiff's motion should be and is hereby allowed. IT IS THEREFORE ORDERED that, during the pendency of this action, the defendant, upon -taking title to, or exercising dominion or control over all or any part of the Ecus.ta mill, regardless of whether the property acquired is real, personal, or mixed in nature: 1. Shall fully comply with all statutory. and regulatory requirements described in the plaintiff's complaint and shall not by act of omission or commission cause any violation of such to occur; shall immediately, unless another time is noted below, take any and all measures necessary to prevent an unlawful discharge of wastewater to the waters of the State or deposit of wastewater onto the land surface, and to fully comply with all permits issued to its predecessor in title by the Division of Water Quality ("DWQ") authorizing operation of wastewater treatment facilities and discharges from certain of those facilities; to ensure the structural stability of the a-sh landfill, to fully comply with permits issued its predecessor(s) in title by the Division of Waste Management ("DWM") for the ash and island landfills, and to protect ground and surface water quality from the migration of contaminants from said landfills; and to take all measures necessary to ensure compliance with the laws and rules governing the management of hazardous waste in order to prevent a release of hazardous waste, and to minimize the potential for harm to human health or the environment while hazardous waste is being managed on site. The measures hereby required of Ancefin Ltd. shall include but not be limited to the following: A. continuously maintain electrical service sufficient to properly operate any and all systems and equipment on site associated with wastewater collection, treatment, and monitoring, including systems and equipment associated with drainage, dewatering, and pumping of contaminated groundwater at the new ash landfill; B. continuously maintain electrical service to the facilities presently leased on the Ecusta site by Environmental Testing Solutions, which company presently supplies sampling and laboratory analysis required by the water quality permits held by the defendant RFS Ecusta; C. provide portable electric generators sufficient to provide adequate standby power for proper operation of any and all systems and equipment on site associated with wastewater collection, treatment, and monitoring, including systems and equipment associated with drainage, dewatering, and pumping of contaminated groundwater at the new ash landfill; D. maintain laboratory and other environmental services, such as collection and analysis of effluent discharged into the waters of.the State; -2- IV E. timely file the self -monitoring reports required by the DWQ permits issued to defendant's predecessor in title; F. maintain all records required by the water quality. permits issued to the defendant's predecessor in title and make such continuously available to the plaintiff for inspection; G. maintain sufficient, qualified staff on site to ensure proper operation and maintenance'of all environmental systems, and timely reporting and communications to the DWQ regarding wastewater treatment issues; H. properly operate and maintain all components of the wastewater treatment systems in compliance with the water quality permits issued to the defendant's predecessor in title and further maintain the dike of the ASB in compliance with the Dam Safety Act and implementing rules so as to prevent any unlawful release of wastewaters into the waters of the State; I. timely sample ground and surface water at the Ash and Island landfills, timely submit laboratory analytical data to the Division of Waste Management; J. maintain a source of water and electricity sufficient to ensure that the mechanical and water fed seals on p rocess chemical tanks or units, product or raw material storage tanks, vessels and pipelines do not fail; K. ensure that all liquid materials, which are not required to be managed as hazardous waste, are removed from product or raw material tanks, vessels, pipelines, or process units prior to any interruption of electrical power and prior to any interruption of a water supply to water -fed seals; L. comply with all applicable rules governing the management of hazardous waste at the site. Specifically, Ancefin Ltd. must: -3- 11 1. complete EPA Form 8700-12 to notify of all hazardous waste activities at the facility and identify the type and volume of waste that will be handled by defendant at the facility, and submit the completed form to the DWM; 2. perform, in accordance with the method set out in 40 CFR 262.11, adopted by reference in 15A N.C. Admin. Code 13A .0107, waste determinations on all solid wastes, which have not been previously characterized, to determine if any such wastes are hazardous wastes; 3. within thirty (30) days of the date of this Preliminary Injunction, remove all hazardous waste from product or raw material tanks, vessels, pipelines, or process units; 4. if defendant contends that any of the chemicals and materials remaining at the facility, including, but not limited those chemicals and materials listed in Exhibits C and D to the Affidavit of Jesse Watson Wells, do not constitute a solid waste or are conditionally exempt from regulation, defendant must submit to the DWM within thirty (30) days of the date of this Preliminary Injunction, and in accordance with 40 CFR 261.2(f), adopted by' -reference in 15A N.C. Admin. Code 13A .0106, written documentation sufficient to support such a contention. In the event defendant fails `to submit writt en documentation, submits incomplete documentation, or in the event DWM determines consistent with Section 261.2(f) that the information submitted is not sufficient to support a claim that chemicals and materials do not constitute waste or are otherwise exempt from regulation, defendant must immediately manage all such chemicals and materials as hazardous waste in accordance -4- FV with all applicable regulations and this Preliminary Injunction. 5. manage all hazardous waste being accumulated at the site in accordance with all applicable regulations as specified in 40 CFR 262.34, .adopted by reference in 15A N.C. Admin. Code 13A .0107; 6. maintain and operate the facility so as to minimize the possibility of a fire, explosion or any unplanned sudden or non -sudden release of hazardous waste or hazardous waste constituents to air, soil, or surface water which could threaten human health or the environment; 7. maintain the facility, and provide for a source of uninterrupted electrical power and water supply, so as to ensure the continued operation and effectiveness of all alarms, sprinklers and other fire suppression devices; 8. retain qualified personnel, trained in accordance with the requirements of 40 CFR 265.16, adopted by reference in 15A N.C. Admin. Code 13A .0110, including an emergency coordinator as referenced in 40 CFR 265.55, adopted by reference in 15A N.C. Admin. Code 13A .0110, to ensure compliance with the. Hazardous Waste Rules and the Court's Orders; 9. within the time allowed in 40 CFR 262.34, adopted by reference in 15A N.C. Admin. Code 13A .0107, arrange for the removal, transport and delivery of all hazardous waste to a permitted hazardous waste storage, treatment or disposal facility, and submit to the DWM copies of all manifests associated with such removal, transport and delivery; and 10. maintain all records required to be retained by 15A N.C. Admin. Code.13A .0107(d), and 40 CFR 262.40, adopted by reference in 15A N.C., -5- C Admin. Code 13A .0107, including all records at the facility which were. required to be retained by RFS Ecusta, Inc., and make such documents continuously available to the plaintiff for inspection. 2. The defendant shall immediately notify the plaintiff of the pendency of any transaction whereby it intends to, or will acquire title to or exercise dominion or control over all or any part of the Ecusta mill, whether the property to be acquired is real, personal, or mixed in nature. The defendant shall serve upon the plaintiff's counsel copies of all motions, other pleadings, and proposed orders filed by it in the pending bankruptcy cases of the Ecusta Corporations (In re: RFS Ecusta Inc. and RFS US, Inc., (Bankr. D. Del., Cases Nos. 02-13110 and 02-13111 (PJW)) . 3. The defendant shall not modify any of the permitted environmental treatment or storage systems now present on the Ecusta mill site without prior approval from DWQ and DWM, and shall not remove any environmental equipment or materials from the site without prior written approval from the appropriate DENR Agency. The defendant shall provide five days written notice before it remove any process equipment, supplies or products, and shall not remove such items in a manner that could result in violations of law or rules. 4. The Court retains jurisdiction of this case after entry of this Preliminary Injunction to enforce compliance with the terms and conditions of this Injunction, resolve disputes, and take any action necessary or appropriate for its interpretation, construction, execution, or modification'. During the term of this Injunction, either party may apply to the Court for any relief necessary to construe or enforce it. 5. Nothing in this Preliminary Injunction shall relieve the defendant of its obligation to comply with all applicable federal, state, or local laws and regulations. Nothing contained in this Injunction shall be construed to prevent, alter, or limit the State's rights to seek or obtain other remedies or sanctions available under federal, state, or local environmental laws or regulations, by virtue of defendant's violation of this injunction or of the statutes and regulations upon which it is based, or for defendant's violation of any applicable provision of law. -6- IV 6. Nothing in this Preliminary Injunction shall preclude the plaintiff from pursuing any remedies available to it by law against RFS Ecusta, Inc. and RFS US, Inc. including, but not limited to, enforcement of injunctive relief obtained against those corporations in Transylvania County file no. 02 CvS 469. 7. This Preliminary Injunction shall be enforceable by and through the contempt powers of this Court, pursuant to Chapter 5A of the North Carolina General Statutes. This the Judge day of Mar -7- . GiJI E, JR. Superior Court RFS ECUSTA, INC et. al. Sales Approved 4-4-03 Buyer Description Price WOODWORKING SHOP MACHINERY C/O PLANER, CLIFF BELL, JR JOINTER, DRILL PRESS, SAW, (3) SAWS, TILTING SAW, $ 4,000.00 SAW, DUST COLLECTOR, ASSTD TOOLS, CABINETS, & OFFICE FURNITURE CLIFF BELL, JR ASSORTED MACHINERY & EQUIPMENT NEW SIDE $ 1,500.00 MAINT SHOP CLIFF BELL, JR ASSORTED MACHINERY & EQUIPMENT LOCATED IN $ 1,500.00 OLD SIDE MAINTENANCE SHOP CLIFF BELL, JR ASSORTED TOOLS & ACCESSORIES LOCATED IN PET $ 1,000.00 SHOP CLIFFORD E. BELL JR. ASSSORTED MACHINERY & EQUIPMENT LOCATED IN $ 1,500.00 PULP MILL MAINT. CLIFF BELL, JR ASSORTED MACHINERY & EQUIPMENT LOCATED IN $ 1,500.00 EMERGENCY MAINT. , CLIFF BELL, JR B&S GRINDER $ 400.00 ATLANTIC PAPER & FOIL CORP. (1) NASH VACUUM PUMP - PM#7 $ 5,000.00 ATLANTIC PAPER & FOIL CORP. (1) TOYOTA FORKLIFT W/ CLAMP (F-10) $ 6,000.00 ATLANTIC PAPER & FOIL CORP. (1) TOYOTA FORKLIFT W/ CLAMP (00-02) $ 6,000.00 ATLANTIC PAPER & FOIL CORP. (1) TOYOTA FORKLIFT W/ CLAMP (S-07) $ 6,000.00 MACHINERY & EQUIPMENT LOCATED IN MECHANICS PETITS PAINT & BODY SHOP SHOP C/O GRINDER, AUTO LIFT, HOISTS, DRILL PRESS, $ 4,000.00 ASSORTED TOOLS & PARTS LARRY TRITT ASSORTED COIL OF ROPE $ 10.00 KENNETH BAYNARD TOYOTA FORKLIFT TRUCK $ 2,500.00 ASSORTED GENERAL PLANT & MILL EQUIPMENT LOCATED IN REBUILDING SHOP C/O GRINDER, HYDRAULIC PRESS, ELECTRIC HOIST, SHREDER, PUMP SINGLE SHEET, INC TESTER, (2) WELDERS, SHAPER, THREADER, (2) BAND $ 10,000.00 SAWS, MANUAL BLADE, DRILL PRESS, FINGER BRAKE, FORMER, SHAPER, (3) BENDERS, MISC. TOOLS & ACCESSORIES Page 2 of 3 RFS ECUSTA,INC RFS US INC RF & SON INVENTORY M&E IP $ 4,000.00 $ 1,500.00 $ 1,500.00 $ 1,000.00 $ 1,500.00 $ 1,500.00 $ 400.00 $ 5,000.00 $ 6,000.00 $ 6,000.00 $ 6,000.00 $ 4,000.00 $ 10.00 $ 2,500.00 $ 10,000.00 RFS ECUSTA, INC et. al. Sales Approved 4-4-03 Buyer Description Price ASSORTED GENERAL PARTS & MILL EQUIPMENT SINGLE SHEET, INC LOCATED IN PROJECT SHOP C/O (3) WELDERS, HOISTS, $ 2,500.00 MISC TOOLS & ACCESSORIES (1) GOEBEL SC1350 OPTIMA (1994) MICROPROCESSOR GLATZ FINE PAPER GMBH CONTROLLED SIMPLEX CENTER SURFACE SLITTER $ 150,000.00 REWINDER (#8) - 53" MAX. WEB, 1,500 METERS/MINUTE MAX. SPEED, HYDRAULIC DRIVE (1) GOEBEL RAPID -DI SIMPLEX SLITTER REWINDER (#61) GLATZ FINE PAPER GMBH - 45" MAX. WEB, 49.2" MAX DIA. UNWIND, 31.5" MAX. $ 75,000.00 DIA. REWIND,800 METERS/MINUTE MAX. SPEED (1) GOEBEL RAPID-D1 SIMPLEX SLITTER REWINDER (#62) GLATZ FINE PAPER GMBH - 45" MAX. WEB, 49.2" MAX DIA. UNWIND, 31.5" MAX. $ 75,000.00 DIA. REWIND,800 METERS/MINUTE MAX. SPEED $ 791,110.00 Page 3 of 3 RFS ECUSTA,INC RFS US INC RF & SON INVENTORY M&E IP $ 2,500.00 $ 150,000.00 $ 75,000.00 $ 75,000.00 $ $ 791,110.00 $ <44103 {DRAFT 4 7/03} UNITED STATES BANKRUPTCY COURT WESTERN DISTRICT OF NORTH CAROLINA In re: RFS ECUSTA INC. and RFS US INC., Debtors. Chapter 11 Case No.: <Oz 1311, 0 (Q?ia»>{03-10360} Case No.: <02 13111 (PJW)>{03-10358} Jointly Administered THIRD ORDER AUTHORIZING <0*>THE SALE OF CERTAIN OF THE DEBTORS' ASSETS FREE AND CLEAR OF ALL LIENS, CLAIMS, ENCUMBRANCES, AND OTHER INTERESTS AND EXEMPT FROM STAMP OR SIMILAR TAXES, AND <(2)->THE CONSUMMATION OF ALL TRANSACTIONS RELATED <'°' TH ^ T 0- E>{THERETO}, PURSUANT TO BANKRUPTCY CODE SECTIONS 105, 363, AND 1146 AND BANKRUPTCY RULES 2002, 6004, AND 6006 The above -captioned debtors and debtors -in -possession (collectively, the "Debtors"), having filed their motion (the "Sale Motion"), dated March 19, 2003 [Dkt. No. _], pursuant to sections 105 and 363 of Title 11 of the United States Code (the "Bankruptcy Code") for an order authorizing the sales of certain of the Debtors' assets, free and clear of all liens, claims, encumbrances, and other interests, authorizing the Debtors to consummate all transactions related to the above, and granting such other relief as is fair and equitable; and a hearing (the "First Sale Hearing") on the Sale Motion having been held by the United States Bankruptcy Court for the District of Delaware (the "Delaware Bankruptcy Court") on March 28, 2003; and upon the proceedings had at the First Sale Hearing and after considering all objections (the "Objections") to the Sale Motion, the Delaware Bankruptcy Court having (i) entered an order (the "Second Sale Order") dated March 28, 2003 [Dkt. No. ] authorizing the sale of certain of the Debtors' assets specified in the Sale Motion and of the intellectual property of RF & Son Inc., (ii) deferred ruling on the Sale Motion, with respect to the remaining assets of.the Debtors the sale of which was requested by the Sale Motion-4ic:—" s , and (iii) entered an order transferring venue of the Debtors' chapter 11 cases to the United States Bankruptcy Court for the Western District of North Carolina (this "Court"); and a hearing (the "Second Sale Hearing," and together with the First Sale Hearing, the "Sale Hearings") having been held by this Court on April4, 2003 to consider the Sale Motion and the sale of <the "e, ain nb ^ ^6e*s>{such remaining assets}; and due and proper notice of the Sale Motion and the Sale Hearings having been given pursuant to, among other things, the Delaware Bankruptcy Court's order {[Docket No. 1 }(the "Original Sale Order"), <[DoNe.--_�mm, >authorizing, among other things, the sale of the Debtors' assets on 5 days' notice; and this Court having considered <4w>fa11J statements {in support of, and all objections to, the Sale Motion )filed or stated on the record at the Second Sale Hearing< in suppei4 of the Sale Mation and in firvar- 0 the sale of the Remaining Assets . fhefeunary and all objections to the Sale Motion having been overruled, withdrawn or otherwise resolved{ regarding that portion of the remaining assets of the Debtors to be sold in accordance with the Sale Motion which are specified on Exhibit A heretol ftb.c "Renaipie g &ssets�; and after due deliberation and sufficient cause appearing therefor, IT IS HEREBY FOUND AND DETERMINED THAT: A. This Court has jurisdiction to hear and determine the Sale Motion and all related matters pursuant to 28 U.S.C. §§ 1334 and 157. Venue of this proceeding in this district is proper pursuant to 28 U.S.C. § 1409. The Sale Motion and Sale Hearing constitute core proceedings pursuant to 28 U.S.C. § 157(b)(2)(A), (B), (N), and (0) B. Proper, timely, and sufficient notice of the Sale. Motion and the Sale Hearings was provided pursuant to Bankruptcy Rules 2002, 6004, and 6006 and the Original 2 «4-4-14-2-7-.e4> MEMO' RI'l Sale Order. No other or further notice of the Sale Motion, the Sale Hearings, or the entry of this Order is necessary. A reasonable opportunity to object, respond, or to otherwise be heard regarding the relief requested in the Sale Motion has been afforded to all interested parties. C. The Debtors are owners of all the Remaining Assetsi and the Remaining Assets, pending the <rl sin-g (as define be! {consummation of the sales hereunder), constitute property of the Debtors' estates pursuant to Section 541(a) of the Bankruptcy Code. D. The Debtors have shown sound and sufficient business justification, and it is a reasonable exercise of their business judgment, to: (i) sell all of their right, title, and interest in and to the Remaining Assets upon the terms and conditions set forth herein; and (ii) consummate all transactions contemplated herein and in any related documents (the "Transaction Documents"). E. The provisions of Sections 363(b), 363(f), 363(m), and 363(o) of the Bankruptcy Code have been complied with and are applicable as to the Remaining Assets. F. Consummation of the sale of the Remaining Assets as contemplated herein and in the Transaction Documents is in the best interests of the Debtors, their estates, creditors, equity security holders, and other parties in interest. G. The sale of the Remaining Assets is properly authorized under the Original Sale Order and all applicable provisions of the Bankruptcy Code, including without limitation, Sections 105, 363, and 1146 of the Bankruptcy Code and previously ordered by this Court. H. The sale of the Remaining Assets contemplated herein represents the highest or otherwise best offers received for the Remaining Assets following the conduct of an open and complete sale process (including a public auction) reasonably calculated to yield the highest or otherwise best offers for the Remaining Assets. 3 <21-11 -2-7 ea> 1 I. The sales, conveyances, and assignments of the Remaining Assets pursuant hereto and to the Transaction Documents shall be free and clear of all liens, claims, encumbrances, and other interests, including, without limitation, mortgages, security interests, pledges, liens, replacement liens, judgments, demands, encumbrances, or charges of any kind or nature, if any, including, but not limited to, any restriction on the transfer, receipt of income or other exercise of any attributes of ownership (the foregoing collectively referred to as "Liens" herein), and all debts arising in any way in connection with any acts of the Debtors, claims (including but not limited to "claims" as that term is defined in the Bankruptcy Code), obligations, demands, guaranties, interests, and matters of any kind and nature, whether arising prior to or subsequent to the commencement of these Chapter I I cases, and whether imposed by agreement, understanding, law, equity, or otherwise (the foregoing collectively referred to as "Claims" herein), with all such Liens and Claims, and any and all other interests <relea-se�, tested, and d ehar-ge r as to>{to attach to the proceeds of sale of, and with the same force, effect and priority as such Liens, Claims and other interest had against.} the Remaining Assets, and holders thereof shall be permanently enjoined from asserting such against the Remaining Assets and the Purchasers (as defined below) and shall look solely to the proceeds of sale. J. The Purchasers are good faith purchasers pursuant to Section 363(m) of the Bankruptcy Code and entitled to the protections thereunder. Neither the Debtors nor the Purchasers have engaged in any conduct that would cause or permit the Transaction Documents or any transfers, assignments, or conveyances hereunder or thereunder to be avoided under Section 363(n) of the Bankruptcy Code. K. The Purchasers shall not by virtue of this Order or the Transaction Documents or the transactions contemplated hereunder or thereunder, be deemed to have 4 <.2..14.1_4.27:04> <I¢-c�1-> pro/vAmomI "successor" liability or responsibility for claims against or obligations of Debtors arising prior to or as a result of the <Qssi-ng>{purchase and sale of the Remaining Assets hereunder}. L. The sale of the Remaining Assets to the purchasers (the "Purchasers") identified on Exhibit A hereto will maximize the value of the Debtors' estates and is in contemplation of the implementation of a plan of liquidation and necessary: to the confirmation and consummation of any such plan. Accordingly, the sale of the Remaining Assets shall be deemed a sale "under a plan" within the meaning of Bankruptcy Code Section 1146(c) and shall be exempt from any and all stamp taxes, recording taxes, and similar taxes, including without limitation any real estate transfer tax and any realty property transfer tax, although such sales do not constitute a sub rosa plan of reorganization. M. The relief requested in the Sale Motion is reasonable and in the best interests of the Debtors' estates and creditors. N. The sale of the Remaining Assets has been conducted in good faith and in accordance with the procedures and requirements of the Bankruptcy Code, the Bankruptcy Rules, ,and the Original Sale Order. NOW, THEREFORE, IT IS HEREBY: ORDERED that the Sale Motion is granted as follows; and it is further ORDERED that all objections to the Sale Motion filed in theses cases or raised in Court at the Sale Hearing are hereby over -ruled, except as explicitly stated herein; and it is =11 T41 ORDERED that the Debtors are authorized to sell to the Purchasers set forth <>{on} Exhibit A hereto the Remaining Assets identified opposite such Purchaser's name on Exhibit A hereto for the purchase price (individually and in the aggregate, the "Purchase Price") identified thereon; and it is further ORDERED that, pursuant to section 363(f) of the Bankruptcy Code, the Remaining {Assets } are hereby deemed to be sold to the relevant Purchaser free and clear of all Liens, Claims, and other interests and any Liens, Claims, and other interests thereon shall attach to the net proceeds of the sale of such Remaining Assets with the same force< -and>{,} effect {and priority }as such Liens, Claims, and other interests had against such Remaining Assets, subject to the {terms of this Order and the )rights, claims, defenses, and objections, if any, of the Debtors and all interested parties with respect to such Liens, Claims, and other interests; and the holders of such Liens, Claims, and other interests shall be permanently enjoined from asserting such against the Remaining Assets and Purchasers and shall look solely to the proceeds of sale{, provided that nothing in this Order shall be construed to absolve any Purchaser for negligent or intentional violations of Federal and North Carolina State environmental or workplace safety laws resulting from action taken by a Purchaser during the course of removal from the Debtors' facility of any Remaining Assets}; and it is further ORDERED that, in addition to the 25% good faith deposit (the "Good Faith Deposit") previously made, within one business day of receiving from Daley-Hodkin Corporation ("Daley-Hodkin") a conformed copy of this Order, each Purchaser shall pay the remaining balance of its Purchase Price by cash, certified check, wire transfer, or other immediately available funds acceptable to Daley-Hodkin; and it is further ORDERED that, in addition to the Purchase Price, within one business day of receiving from Daley-Hodkin a conformed copy of this Order, each Purchaser shall immediately pay to Daley-Hodkin the Buyer's Premium equal to 7% of the aggregate Purchase Price paid by such Purchaser; and it is further ORDERED that if any Purchaser fails to consummate the purchase of the respective Remaining Assets as set forth above< -(the "Gloss„rt > within one business day of 111140 N MRIMMVI MOCK M VIIIle► IN MT.1 9 DILI]:1 M 11910 PYRILISM-M, receiving from Daley-Hodkin a conformed copy of this Order, as provided above, (A) the aggregate Good Faith Deposit by such Purchaser will be forfeited to the Debtors, which may also seek all available damages from the relevant Purchaser, (B) all rights of the relevant Purchaser to the relevant Remaining Assets (the "Defaulted Assets") shall be immediately waived and/or terminated, and (C) Daley-Hodkin may sell by private sale or public auction, at its discretion, the Defaulted Assets to another purchaser or purchasers pursuant to the terms and conditions of the Original Sale Order or any further or other order of this Court; and it is further ORDERED that the Debtors and the Purchasers are each authorized and directed to take all actions and execute all documents reasonably necessary or appropriate to effectuate the sale of the Remaining Assets to the Purchasers approved hereunder; and it is further ORDERED that immediately upon <C esi*g>{consummation of each purchase}, the <P,,. i-s>{applicable Purchaser) shall assume all liabilities and obligations in and relating to the Remaining Assets {purchased by it hereunder }(except for the Liens, Claims, and other interests that are transferred and released by the terms hereof), and the Debtors shall have no other or further obligations or liabilities related thereto; and it is further ORDERED that all Remaining Assets shall be removed from the Debtors' premises by April <{24,>{24 12003, and that all such property not removed by such date shall be immediately deemed abandoned and forfeited to the Debtors; and it is further ORDERED that the default by one Purchaser hereunder shall not effect the rights and/or obligations of the other Purchaser; and it is further ORDERED that the provision in Bankruptcy Rule 6004(g) staying an ' order authorizing the use, sale, or lease of property until the expiration of 10 days after entry of such order is hereby waived; and it is further 7 <244142-7,94> <UB-crl-> ► � � ��r;�.�y�►titi� x�� _ .. ; w•ir r i r;�y�rr�er���z�z� ORDERED that pursuant to Section 1146(c) of the Bankruptcy Code, the making delivery, filing, or recording of. (i) the deed and related transfer documents, (ii) assignment and related transfer documents, and (iii) any and all other instruments of conveyance or transfer hereunder and under the Transaction Documents (collectively the "Conveyances"), are exempt from and shall not be taxed under any Federal, State, or local law imposing a recording tax, stamp tax, transfer tax, or similar tax, including, without limitation, transfer and recordation taxes applicable to deeds and assignments of leases, including without limitation the any real estate transfer tax and any real property transfer tax (collectively "Transfer Taxes"). All filing and recording officers are hereby authorized and directed to accept for recording or filing, and to record or file immediately upon presentation thereof, the Conveyances, without the payment of any such Transfer Taxes and without the requirement or presentation of any affidavit or form with respect to any Transfer Tax regarding the Conveyances. All governmental authorities or taxing authorities shall be permanently enjoined from commencing or maintaining any action to collect from the Purchasers, the Debtors, or the Remaining Assets any Transfer Taxes arising from the transfers to be effectuated under the Transaction Documents, and this Court retains jurisdiction to enforce the foregoing direction, by contempt or otherwise; and it is further ORDERED that the Debtors be, and hereby are, authorized to consummate the sales contemplated hereunder without the necessity of complying with any state or local bulk transfer requirements; and it is further E htar an att�}t-tl�E31,-10, - rcp1aE=fi$ e t-&f—. :E- �:E:t i - E i 1Er'rs-tc ; k�'rr£Ptr-.=.`�Elki tvE %E3- -sw z?FsiE E i 3u £iiE £ is-x: s 8 «t 4-}27, 4> I � ` :'�-�1-'r`'.--r�"��51✓Ei6-1a�--i�-1''----."3=Eli �,—ci@�i�--?-"ia-��'i-g��.r7-�3��---T--"�3s'q��`%$}'s4i$--��-i�$E3:��-�:z���1-$1�--�E�'r?�i�ii�-�-�'-- -� ��= pa"$ j~i�',�.�'-� �=i�-�$;%^--1�}-- . ±=-��-�z�-i�-:'.-s-del#�-��-�.,°-t#mil?-r�;:it?r�� s �i�-is1-'t•-�,sE-1-}�?-§^-� ��-!"�'--E"s.:'a='�-s"-�-�,-�'�f�<?>-i�i`-? and "r+c-1s ful413�G-F> ORDERED that the claim of Transamerica Business Capital Corporation ("TBCC") against the Debtors for repayment of amounts funded by TBCC under the terms of the Final Order Authorizing Secured And Superpriority Postpetition Financing dated February 5, 2003 [Dkt. No. 2401, for the period March 31, 2003 through April 30, 2003 (<i->{the "New Funding"}) { i}in accordance with the approved <budged>{budget} filed with this Court [Dkt. No. 406] for the period of April 6, 2003 through April 12, 2003, and (ii) in accordance with an agreed budget (the "Budget") for the period April 13, 2003 through April 30, 2003, shall be senior and prior to all liens, claims and encumbrances of all parties in interest, including State, Federal and <1oea4>{Transylvania County} authorities represented at the Sale Hearings, and the proceeds of any sale of the Remaining Assets shall reimburse <stteh fundi„b 4 >TBCC { for the New Funding} immediately upon receipt thereof by Daley-Hodkin, without prejudice to the rights of the State of North Carolina with respect to <thei-r>{its} Motion for Preliminary Injunctive Relief (the "Injunction Motion") {4 and any similar claims made by or on behalf of the United States Environmental Protection Agency.} regarding all other funding provided to the Debtors by TBCC and the right" of TBCC to oppose the Injunction Motion for similar claims of the United States Environmental Protection Agency )on any basis{; and it is further} {ORDERED that, after reimbursement to TBCC of all New Funding}__tY} Debtors shall set aside {from the roceeds of sales authorized by the Second Sale Order or this Order}, imlil ot-herwise ordered by the .COLLITor agreed to by Trag.svltaijia Cticsul,1g_�#�s�" I7aviner7i c>f prclota�es asSF Itcl 1a� the Traz"15y11a:nir� C"oul�t` t authc�riv fc� il�� 2f)(}_, 9 <2-(142.r t4> W 1 1 g►.. M W.11 I. KW 111 1140 rNmAxam 1.72 Wk1!RJ1 2002_aiid 2003. to y�c�t �_ {the amount of } � 550 000 (which ��r7ic��€� t sl�.al] be . replacement -- =---_ aml ;not in a dilio,r to. ,aniourzts Mq . ti _o be set aside for _o vin nt oftaxes c.rrrder the Second alc Order ,2ni i_tl�e ri 1�t�> of ransylvat�i�., Col , axi l� aud,,cgKity a p<��JIIIea t_O SLIC3� tr sort crf srrc J_zi�rrci_s_sl� i si�rel _tl C e��tiv_Ilcreoi,._-s icl ci{that}_rzo l��rly-sball_be deciiied to -have waived riny ci 1111 to challen e or egiiiest{, or to assert any defense to such challenge or contest.}_ i,Lt, assessed aga;rest_the Debtors; on a iiy basis or the - riority of apy liep ot) assels of'the Debtor se�L�ring_such taxes, acid _r othi _, herein shall release aTiv {Purchaser} f'ror11 its csbl_ig dons wvitll resncct tc� tl_ �t)(}3_ Sr��t crt ! t xc ti ceic ing_froyn the date of {purchase}; and it is further ORDERED that a hearing shall be held before this Court on the Injunction Motion on April 23, 2003 at <-> _.m. (the "April 23 Hearing"); and it is further <0RT11m D thateaunsel iDeehert shall, e - 1,efe.-e Apftl 11, g, eiretilate te all par -ties in interest a dfaft agenda for- the Apfil 23 Hearing; and it is > ORDERED that the Debtors, TBCC, the Committee of Unsecured Creditors appointed in the RFS Ecusta Inc. chapter 11 case (the "Committee"), the State of North Carolina and the U.S. Environmental Protection Agency shall negotiate in good faith a revised Budget for the period April 13, 2003 through April 30, 2003; and it is further ORDERED that{, upon reasonable notice to the Debtors,} the State of North Carolina and the <U-.S-.>{United States} Environmental Protection Agency shall have {reasonable }access to the premises of the Debtors and the{ reasonable} cooperation of the Debtors and Daley-Hodkin to inspect the Debtors' assets and property to determine in good faith in consultation with the Debtors, the Committee and TBCC which property is necessary to maintain environmental systems and cannot be sold{, and to mark such property with a clearly identifiable mark or tag; and it is further} {ORDERED that any prospective bulk purchaser of the Debtors' assets, including the prospective bulk purchaser represented at the Second Sale Hearing by Bruce Roberts of the Carolina Financial Group, shall have reasonable access to the Debtors' 10 <244 P-7-04> ► 1 :► / a.►. � . .1 1:1 : 11 I � remises, and the Debtors' and Daley-Hodkin shall provide reasonable cooperation so that such potential bulk purchaser may conduct appropriate due diligence}; and it is further ORDERED that the failure specifically to include any particular provisions of the Transaction Documents in this Order shall not diminish or impair the efficacy of such provisions, it being the intent of the Court that the Transaction Documents are approved in their entirety; and it is further ORDERED that the provisions, rights, and obligations of each party hereunder shall survive conversion of these cases to cases under Chapter 7 of the Bankruptcy Code. Dated: Charlotte, North Carolina April _, 2003 Chief United States Bankruptcy Judge 1 1 «-141-1-27-04> <w--P—.'G1•I—> uocument comparison cone by ueitaview on ivionaay, Hpni Ur, 2UU6 'LU:44:L: Document 1 file://M:\Wpdoc\TRANSAM\ECUSTA\Bankruptcy\Third Sale Order-v2.doc Document 2 file://M:\Wpdoc\TRANSAM\ECUSTA\Bankruptcy\Third Sale Order.doc Rendering set LSE L.egende w� {Insertion } <Tl'r�e e+ion-> Moved to Format change Inserted cell Deleted cell Moved cell` Split/Merged cell Padding cell St�#tstic Er.w S„, h 5,w. ,, M.,re..� fl,,,�m�mR����,.���,0 Count Insertions 48 Deletions 34 Moved from 7 Moved to 7 Format chan ed 0 Total changes 96