NC0089052_Issuance of Permit_20110629

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NC®ENR
North Carolina Department of Environment and Natural Resources
Division of Water Quality
Beverly Eaves Perdue Coleen H. Sullins
Governor Director
June 29, 2011
Mr. David A. Gill
Receiver
Diversified Lending Group, Inc.
2029 Century Park East, Third Floor_
Los Angeles, CA 90067
Subject:. Issuance of NPDES Permit
NCO089052
Zooland Family Campground
Asheboro, Randolph County
Class 11 Facility
Dear Mr. Gill:
Dee Freeman
Secretary
Division personnel have reviewed and approved your application for issuance of the subject permit.
Accordingly, we are forwarding the attached NPDES discharge permit. This permit is issued pursuant to the
requirements of North Carolina General Statute 143 -215.1 and the Memorandum of Agreement between North
Carolina and the U.S. Environmental Protection Agency dated October 15, 2007 (or as subsequently amended).
There are two changes in this final permit from the draft permit sent to you:
• Based on concerns of Inland Fisheries involving freshwater mussels, ultraviolet light disinfection should be
used instead of chlorine.
• The ammonia limit has been reduced to 0.5 mg/ L. Mr. John Phillips, P.E. of Diehl and Phillips P.A. was
consulted and is certain that the facility as designed can meet the lower ammonia limits.
If any parts, measurement frequencies or sampling requirements contained in this permit are unacceptable
to you, you have the right to an adjudicatory hearing upon written request within thirty (30) days following receipt
of this letter. This request must be in the form of a written petition, conforming to Chapter 150B of the North
Carolina General Statutes, and filed with the Office of Administrative Hearings (6714 Mail Service Center,
Raleigh, North Carolina 27699 - 6714). Unless such demand is made, this decision shall be final and binding.
1617 Mail Service Center, Raleigh, North Carolina 27699 -1617
Location: 512 N. Salisbury St. Raleigh, North Carolina 27604 T�TOne L, 1
Phone: 919 - 807 -63001 FAX: 919 - 807 -64951 Customer Service: 1 -877- 623 -6748 iV ofthCaroh 1a
Internet: www.ncrraterquality.org �aturaltr�
An Equal Opportunity 1 Affirmative Action Employer

Pleases note that' this permit. is riot °transferable. except 'after notice. to the "Division.. The Division: may w "'
require modification or revocation and reissuance of the permit. A copy of the Permit Name/ Ownership Change
Form is attached. An Ownership Change is considered to be a minor modification; no permit fee is required. This
permit does not affect the legal requirements to obtain other permits which maybe required by the Division of
Water Quality or permits required by the Division of Land Resources, the Coastal Area Management Act or any
other Federal or Local governmental permit that may be required.
Our rule T15A: 02H.0105(c)(7) requires: "a statement to demonstrate financial qualification and
substantial previous compliance with federal and state laws, regulations, and rules for the protection of the
environment as required by G.S. 143- 215.1(b)(4)(b)." This must be provided by.the purchaser at the.time, of filing
for ownership change.
If you have any questions concerning this permit, please contact Jim McKay at telephone number (919)
807 -6404.
Sincerely,
l%l 1
Coleen H. Sullins.
Attachment: Permit Name/ Ownership Change Form
cc: Winston -Salem Regional Office/ Attn: Mike Mickey - with fact sheet
NPDES File
Central Files
Technical Assistance & Certification Unit Attn: Mr. Steve Reid - via. email with fact sheet
Diehl & Phillips, P.A. Consulting Engineers/ 219E Chatham Street Cary, NC 27511/ Attn: Mr. John Phillips P.E. - with
Permit Name/ Ownership Change Form
1617 Mail Service Center, Raleigh, North Carolina 27699 -1617
Location: 512 N. Salisbury St. Raleigh, North Carolina 27604 1� Tone 1, 1
Phone: 919 - 807 -63001 FAX: 919 - 807 -6495 \ Customer Service: 1 -877- 623 -6748 ofthCarohn 1
Internet: www.ncwaterquality.org ° .. =�aturall
An Equal Opportunity 1 Affirmative Action Employer ° '

} 1 1
Permit NCO089052
` STATE OF NORTH CAROLINA
DEPARTMENT OF ENVIRONMENT AND NATURAL RESOURCES
DIVISION OF WATER QUALITY
PERMIT
TO DISCHARGE WASTEWATER UNDER THE
NATIONAL POLLUTANT DISCHARGE ELIMINATION SYSTEM
In compliance with the provision of North Carolina General Statute 143- 215.1, other lawful standards and regulations
promulgated and adopted by the North Carolina Environmental Management Commission, and the Federal Water Pollution
Control Act, as amended,
Receivership of Diversified Lending Group, Inc, David A. Gill, Receiver
is hereby authorized to discharge wastewater from a facility located at the
Zooland Family Campground WWTP
3671 Pisgah Covered Bridge Road
Asheboro
Randolph County
to receiving waters designated as Little River in the Yadkin River Basin in accordance with effluent
limitations, monitoring requirements, and other conditions set forth in Parts I, II, III and IV hereof.
This permit shall become effective August 1, 2011.
This permit and authorization to discharge shall expire at midnight on June 30, 2014.
Signed this day June 29, 2011.
een I Sullins, Director
L114 /Division of Water Quality
By Authority of the Environmental Management Commission

SUPPLEMENT TO PERMIT COVER SHEET
Perivit NC0089052 :•
h . .1 . -
Receivership of Diversified Lending Group, Inc, David A. Gill, Receiver
is hereby authorized to:
1. After obtaining an Authorization to construct from the Division, to construct, and after
submittal of an "Engineer's Certificate to:
2.
Operate a 0.006 MGD wastewater treatment facility with the following components:
8,000 gallon septic tank influent receiving basin
3,000 gallon flow equalization tank
Duplex submersible pumps
2800 gallon Moving Bed Biofilm Reactor
Duplex blower system
Bioclere with integral clarifier
2,000 gallon filter feed tank
Two tertiary sand - filters
Alkalinity feed system with one pump
Ultra- violet light disinfection system
Effluent flow meter with recorder
Backup generator and transfer switch
3. After obtaining an Authorization to construct from the Division, to construct, and after submittal
of an Engineer's Certificate to:
4. Operate a 0.011 MGD wastewater treatment facility with the following components:
♦ 10,000 gallon septic tank influent receiving basin
♦ 3,000 gallon flow equalization tank interconnected to existing flow equalization tank
♦ Duplex submersible pumps
♦ 5000 gallon Moving Bed Biofilm Reactor
♦ Duplex blower system
♦ Bioclere with integral clarifier
♦ 2,000 gallon filter feed tank (existing)
♦ One additional tertiary sand filter
♦ Ultra- violet light disinfection system
♦ Effluent flow meter with recorder (existing)
♦ Backup generator and transfer switch (existing)
This facility is located at the Zooland Family Campground WWTP on Pisgah Covered Bridge Road
near Asheboro in Randolph County.
5. Discharge from said treatment works at the location specified on the attached map into Little
River, classified C waters in the Yadkin River Basin.
4

Outf all 001
Permit NCO08 9052
ge
N", �",2
V
r.
M
ZOOLANDFAAMYCAPGROUND
Facility
Agar-)
Location
Ewsking Little Ri"r
DftbwwwBwira Yadkin
not to wale
L^*Ud41 35 36'05-N
Loncitudt, 79 50'-'8-W
$IA-DOIA6 03-07-15
Pomigiod f : 0.006 MGD
tD 0.017 MGD
NPDES
Permit NCO089052
$Ufa CrMtUSCjQ"As El9SE/$a&V*wNC
stmm cum C
North
Randolph County
r.

. Permit^ NC-0089052 �.
A. (1.) EFFLUENT LIMITATIONS AND MONITORING REQUIREMENTS
During the period beginning on the effective date of this permit and lasting until expansion above 0.006 MGD, or expiration, the
Permittee is authorized to discharge treated wastewater from outfall 001. Such discharges shall be limited and monitored by the
Permittee as specified below:
EFFLUENT „
LIMITS
MONITORING REQUIREMENTS
CFIARACTERISTICS
r
s.
? N{
t Monthly t
Daily ?
Measurement
Sample
" 'Sae Locahon °s
mpl
M
Frequency
T ., 'e„ s
Flow
0.006 MGD
Continuous
Recording
Influent or Effluent
BOD, 5 -day (20 °C)
5.0 mg /L
7.5 mg /L
Weekly
Composite
Effluent
Total Suspended Solids
30.0 mg/L
45.0 mg/L
Weekly
Composite
Effluent
NH3 as N
(April 1 — October 31
0.5 mg/L
2.5 mg /L
2/ Month
Composite
Effluent
NH3 as N
(November 1 — March 31
0.5 mg /L
7.15 mg /L
2/ Month
Composite
Effluent
The daily average dissolved
oxygen effluent
Effluent,
Dissolved Oxygen
concentration shall not be
Weekly
Grab
Upstream & Downstream
less than 6.0 mg/L.
Fecal
/ 100 ml
400 / 100 ml
Weekly
Grab
Effluent
eometric mean)
(geometric
Temperature ( °C)
Weekly
y
rab
Effluent,
Upstream & Downstream
The pH shall not be less than
pH
SU SU nor greater than 9.0
Weekly
Grab
Effluent
Footnotes:
1. Upstream = at least 100 feet upstream from the outfall. Downstream = at NCSR 1127.
There shall be no discharge of floating solids or foam visible in other than trace amounts.

f !
• Permit NCO089052
` A. (2.) EFFLUENT LIMITATIONS AND MONITORING REQUIREMENTS
During the period beginning on the submittal of an Engineer's Certificate and lasting until expiration, the Permittee is authorized to
discharge treated wastewater from outfall 001. Such discharges shall be limited and monitored by the Permittee as specified below:
EFFLUENT
" LIMITS
, =. MONITORING REQUIREMENTS
CHARACTERISTICS
s,
;Monthly
Daily '
Measurement ,
Sample
Sample Location' < ``
� p4
Avera a i
.Maximu
Fne" uenc
�T :_ e
Flow
0.017 MGD
Continuous
Recording
Influent or Effluent
BOD, 5 -day (20 °C)
5.0 mg /L
7.5 mg/L
Weekly
Composite
Effluent
Total Suspended Solids
30.0 mg /L
45.0 mg /L
Weekly
Composite
Effluent
NH3 as N
0.5 mg /L
2.5 mg /L
2/ Month
Composite
Effluent
(A ril 1 — October 31
NH3 as N
0.5 mg/L
7.15 mg/L
2/ Month
Composite
Effluent
November 1 — March 31
The daily average dissolved
oxygen effluent
Effluent,
Dissolved Oxygen
concentration shall not be
Weekly
Grab
Upstream & Downstream
less than 6.0 mg /L.
Fecal Colifonn
200 / 100 ml
400 / 100 ml
Weekly
Grab
Effluent
eometric mean
Temperature ( °C)
Weekly
Grab
Effluent,
U stream & Downstream
The pH shall not be less than
pH
6.0J SU nor greater than 9.0
Weekly
Grab
Effluent
Footnotes:
1. Upstream = at least 100 feet upstream from the outfall. Downstream = at NCSR 1127.
There shall be no discharge of floating solids or foam visible in other than trace amounts.

DENR/DWQ
FACT SHEET FOR NPDES PERMIT DEVELOPMENT
NPDES No. NCO089052
Apphcant/Facihty Name 1 Receivership of Diversified Lending Group, Inc. /Zooland Family
'
Campground W WTP
A : licant Address,f: 2029 Century Park East, Third Floor, Los Angeles, CA 90067
TaQJV Address, a 3671 Pisgah Covered Bridge Road, Asheboro, NC
Perriiitted�Flow 0.006 MGD, expandable to 0.017 MGD
r
T W
e of aste „ r , `.;' Domestic
Facilitv/Permit Status. Class II/ New
Receiving Stream
Little River/
Yadkin River Basin_'
Regional�Office
"�
Winston -Salem
Stream Clas "sif cat ion
U$557o o'Quad '
E19SE/ Seagrove NC
303(d) Listed
Not on 20101ist
Perriiit Waster .z r
Jim McKa
Subbasm:,' , ,., r . �.
03 -04 -15
May 27, 2011
Drainage Area (mi2j „'
14.74 mi2
�J
Summer 7Q10 (cfs)
0.03
Winter 7 10 cfs
0.5
30 2 cfs
IWC 0/01:1 _ "A °;;a�"
46.76 Summer
PrimarySIC�Code ' ,� n ,� m .,,
4952
SUMMARY '
Zooland Family Campground is a small campground located near the Uwharrie National Forest
outside of Asheboro, NC. It is subject to federal court, and is currently held by a receiver due to
foreclosure on a promissory note. The receiver hopes to obtain a NPDES permit, then sell the
property to a purchaser who would construct and operate the WWTP. Currently there is no
permitted wastewater treatment facility at the site. A permit was issued for a package treatment
plant in 1973, but it was never built and the permit was not renewed. In September, 2010 the
Winston -Salem Regional Office noticed a flow of black septic liquid in a ditch leading to the
Little River. Apparently a septic tank had been installed by a previous owner with no permit
from DENR or the local health department. A NOV was issued for the unpermitted treatment
system, and the campground ceased operation while a treatment plant was designed and a permit
to discharge was applied for. The applicant has applied for a Pump and Haul permit to allow the
campground to operate in the interim. The treatment plant will be located at 3671 Pisgah
Covered Bridge Road in Asheboro, North Carolina, in Randolph County. The design capacity of
the treatment system is 0.017 MGD. The facility will have one outfall, which will discharge to
Little River, classified Class C waters in the Yadkin River Basin. Little River is not listed as
impaired on the 2010 303d list.
G S•
Little River at the discharge point has a Summer 7Q10 flow of 0.03 Since the 7Q10 flow
is less than 0.05, Little River is considered a Zero Flow stream. Since e 30Q2 is 1, the 15
NCAC 02B .0206 (d) (1) rule allows the discharge permit to be issued. A Level B model was
run for a 2 mile stretch of river to verify that the stipulated 5 mg/ L BOD and 2 mg/ L ammonia -
nitrogen was protective of the instream DO standard of 5 mg/ L. Based on comments received
from the Division of Inland Fisheries, the ammonia limits were reduced to 0.5 mg/ L Summer
and Winter in order to protect endangered and threatened mussels, and.UV radiation will be used
for disinfection instead. of chlorine.
Fact Sheet
NPDES Renewal NCO089052
- Page I

The system will be built in two stages. The first stage with 6,000 gallons per day capacity will
consist of:
♦ 8,000 gallon septic tank influent receiving basin
♦ 3,000 gallon flow equalization tank
♦ Duplex submersible pumps
♦ 2800 gallon Moving Bed Biofilm Reactor
♦ Duplex blower system
♦ Bioclere with integral clarifier
♦ 2,000 gallon filter feed tank
♦ Two tertiary sand filters
♦ Alkalinity feed system with one pump
♦ Ultra - violet light disinfection system
♦ Effluent flow meter with recorder
♦ Backup generator and transfer switch
The second stage, with an additional capacity of 11,000 gallons per day will consist of:
♦ 10,000 gallon septic tank influent receiving basin
♦ 3,000 gallon flow equalization tank interconnected to existing flow equalization tank
♦ Duplex submersible pumps
♦ 5000 gallon Moving Bed Biofilm Reactor
♦ Duplex blower system
♦ Bioclere with integral clarifier
♦ 2,000 gallon filter feed tank (existing)
♦ One additional tertiary sand filter
♦ Ultra- violet light disinfection system
♦ Effluent flow meter with recorder (existing)
♦ Backup generator and transfer switch (existing)
DMR Data Review
This permit is for a proposed new WWTP. There is no DMR data.
TOXICITY TESTING.
Current Requirement: New permit.
Recommended Requirement: None.
INSTREAM MONITORING
Instream monitoring will be required for temperature and dissolved oxygen. The Upstream
sample point should be at least 100 feet upstream of the discharge point. The Downstream
sample should be taken about 2 miles downstream at NCSR 1127. This location corresponds to
the DO sag location predicted by a Level B WQ model.
COMPLIANCE SUMMARY
New permit.
Reasonable Potential Analysis (RPA)
New permit.
PROPOSED CHANGES
New permit.
Fact Sheet
NPDES Renewal NC0089052
Page 2

0
PROPOSED SCHEDULE FOR PERMIT ISSUANCE
Draft Permit to Public Notice: April 27, 2011
Permit Scheduled to Issue: June, 2011
STATE CONTACT
If you have any questions on any of the above information or on the attached permit, please
contact Jim McKay at (919) 807 -6404.
NAME:- m C/ DATE: 6- Z 0
NPDES SUPERVISOR
NAME: DATE:
REGIONAL OFFICE COMMENT
NAME: DATE:
Fact Sheet
NPUFS Renewal NCO089052
Page 3

® North Carolina Wildlife Resources Commission
Gordon Myers, Executive Director
MEMORANDUM
TO: James McKay, Surface Water Protection Section — Point Source Branch
Division of Water Quality
FROM: Shannon Deaton, Manager
Habitat Conservation Program
DATE: 23 May 2011
SUBJECT: NPDES Permit Application for Zooland Family Campground Wastewater Treatment
Plant, Diversified Lending Group, Inc., Randolph County, NPDES Permit No.
NCO089052
Biologists with the North Carolina Wildlife Resources Commission have reviewed the subject
document. Our comments are provided in accordance with provisions of the Clean Water Act of 1977 (as
amended), Fish and Wildlife Coordination Act (48 Stat. 401, as amended; 16 U.S.C. 661- 667d), and
North Carolina General Statutes (G.S. 113 -131 et seq.).
Diversified Lending Group, Inc. has applied for an NPDES permit to discharge treated
wastewater into Little River in the Yadkin River basin. There are records for the federal species of
concern and state endangered Carolina creekshell (Villosa vaughaniana), Atlantic pigtoe (Fusconaia
masoni), Savannah lilliput (Toxolasma pullus), brook floater (Alasmidonta varicosa), and green floater
(Lasmigona subviridis); the state threatened creeper (Strophitus undulatus); the state special concern
notched rainbow (Villosa constricta); and state significantly rare Eastern creekshell ( Villosa delumbis)
and Uwharrie's region bivalve (Alasmidonta sp.) in Little River downstream of the proposed discharge.
The Significant Natural Heritage Area— Upper Little River (Randolph/Montgomery) Aquatic Habitat— is
located immediately downstream of the proposed discharge.
The campground has an existing septic tank that was not permitted by DENR or the local health
department. Black septic liquid in a ditch was observed flowing into Little River in September 2010. To
address this issue, the applicant proposes to operate a 0.017 mgd Class II facility that uses chlorine for
disinfection. The 7Q10 for this section of Little River is 0.03 cfs and the IWC% for the summer is 46.76.
The draft permit includes a 28 µg/1 daily maximum limit for total residual chlorine (TRC), and monthly
ammonia nitrogen limits (NH3 as N) of 2.0 mg/1 (summer) and 4.0 mg/1(winter) with corresponding daily
maximum limits of 10.0 mg/1 and 20.0 mg/l.
The Little River supports a very diverse freshwater mussel population downstream of the
proposed discharge. While untreated sewage can negatively impact aquatic resources, we are concerned
the facility as proposed also has the potential to negatively affect the diverse population of freshwater
Mailing Address: Division of Inland Fisheries • 1721 Mail Service Center • Raleigh, NC 27699 -1721
Telephone: [phone] • Fax: [phone]

Page 2
23 May 2011
Zooland Family Campground WWTP
NPDES Permit No. NC0089052
mussels in Little River. Therefore, we cannot concur with the issuance of this permit for Zooland Family
Campground as proposed. We could concur with issuance of this permit provided the following changes
are made to the facility and the effluent permit limits.
Chlorine systems are replaced by ultraviolet light systems. Chlorine is acutely toxic to aquatic
organisms and can form secondary compounds that are detrimental to aquatic life. Valenti (2006)
concluded the impact of long term exposure to low doses of chlorine may impact juvenile
mussels and reduce the chance of them being recruited to the reproducing population.
Ammonia limits should be developed based on EPA's recommendations in the Draft 2009 Update
of Aquatic Life Ambient Water Quality Criteria for Ammonia — Freshwater. This document
indicates when freshwater mussels are present an acute criterion of 2.9 mg N/L and a chronic
criterion of 0.26 mg N/L (at pH 8 and 25 °C) be implemented (EPA 2009). Recent NPDES permit
renewals in the Goose Creek watershed have incorporated monthly ammonia nitrogen limits (NH3
as N) of 0.5 mg/L (summer /winter) with daily maximum limits of 2.9 mg/L (summer) and 7.15
mg/L (winter).
Thank you for the opportunity to comment on the permit application. If we can be of further
assistance, please contact our office at (336) 449 -7625.
Literature cited
Valenti, T.W., D.S. Cherry, R.J. Currie, R.J. Neves, J.W. Jones, R. Mair, and C.M. Kane. 2006. Chlorine
toxicity to early life stages of freshwater mussels (Bivalvia: Unionidae). Environmental
Toxicology and Chemistry, 25(9):2512 -2518.
US Environmental Protection Agency, Office of Water, 2009. Draft 2009 Update Aquatic Life Ambient
Water Quality Criteria for Ammonia — Freshwater Retrieved from
http: // water .epa.gov /scitech/swguidance / standards / criteria /aqlife /pollutants /ammonia/upload/2009
— 12 -23— criteria ammonia .2009update.pdf
ec: Ryan Heise, WRC

eP ►led 10: 5 s s If c t- ef" 9-S 7e e0 Grit er ¢--
$elnick, Tom
From: Mckay, James
Sent: Wednesday, May 04, 2011 11:44 AM
To: Belnick, Tom
Subject: FW: Zooland Family Campground NCO089052
Tom
This permit just went out for draft review and public comment. Would this request be considered a major modification
that would require a fee?
Jim McKay, Environmental Engineer
NC DENR 1 Division of Water Quality / Surface Water Protection Section
Point Source Branch
1617 Mail Service Center; Raleigh. NC 27699 -1.617
91.9%807 -6404 (work); 919/807 -6495 (fax)
"Please note, my email address has changed to James.MeKay(i ncdenr.gov
E -mail correspondence to and f -rim this address »nay be subiect to the North Carolina Public Records law and may he
disclosed io third parties.
SAr, - t StQ -(II, MOr,e-� it) ®dc!l, "q /I6 fr/
From: John F. Phillips [ mailto :jfphillipsCabbellsouth.netl
Sent: Wednesday, May 04, 2011 11:34 AM
To: Mckay, James
Cc: Gill, David
Subject: Zooland Family Campground NCO089052
Jim,
The campground recently installed a water meter on the well serving the camper spaces with hookups and the bath
house, and the on -site manager is recording the daily flows and occupancy information. Based on this limited information,
it is very apparent that the initial wastewater treatment system should be sized substantially smaller than 17,000 gpd, in
order to function properly. We plan to request from DWQ an adjusted daily flow design rate, pursuant to 15A NCAC
02T.01 14(f), once we have accumulated data from the current camping "season ". This request would-be made in
conjunction with the final design of the wastewater treatment facilities.
Based on this information, and a review of the draft NPDES permit, 1 am requesting (on behalf of the Applicant) that the
draft permit be revised to be a Phased Permit, with the following flow allocations for each Phase:
Phase 1 - 6,000 gallons per day
Phase 2 - 11,500 gallons per day
Phase 3 - 17,000 gallons per day
Please contact me if you have any questions in this matter. Thank you for your continued assistance.
John F. Phillips, P.E.
Diehl & Phillips, P.A.
Phone 919 - 467 -9972
Fax 919 - 467 -5327 -

State of North Carolina,
Randolph County
To Whom It May Concern:
This is to certify the
advertisement attached
hereto has been published in-
The Courier - Tribune
on the following dates:
FIJI/ . l - =
Sworn to on this aD day
of 12011
Courier - Tribune Representative
Sworn to and Subscribed
Before me this �y'I`` day
of, 2011
Notary Public
My Commission Expires
12%13/2012
LYDIA B. SHIVER
Notary Public, North Carolina
Randolph County
My Commission Expires
Public Notice
North Carolina Environmental Management
Commission / NPDES Unit
1617 Mail Service Center
Raleigh, NC 27699 -1617
Notice of Intent to Issue a
NPDES Wastewater Permit
The North Carolina Environmental Management Commission
proposes to issue a NPDES wastewater discharge permit to
the person(s) listed below.
Written comments regarding the proposed permit will be
accepted until 30 days after the publish date of this notice. The
Director of the NC Division of Water Quality (DWQ) may hold a
public hearing should there be a significant degree of public
interest. Please mail comments and /or information requests to
DWQ at the above address. Interested persons may visit the
DWQ at 512 N. Salisbury Street, Raleigh, NC to review
information on file. Additional information on NPDES permits
and this notice may be found on our website:
http: / /portal.ncdenr.org /web /wq /swp /ps /npdes /calendar, or by
calling (919) 807 -6304.
David Gill, Receiver of Diversified Lending Group, Inc. has
applied for a new.NPDES discharge permit NCO089052 for
Zooland Family Campground WWTF in Randolph County; this
permitted discharge is treated domestic wastewater to Little
River, Yadkin River Basin.
1 t - 4/28/2011

J

DENR/DWQ
FACT SHEET FOR NPDES PERMIT DEVELOPMENT
NPDES No. NCO089052
SUMMARY
Zooland Family Campground is a small campground located near the Uwharrie National Forest
outside of Asheboro, NC. It is subject to federal court, and is currently held by a receiver due to
foreclosure on a promissory note. The receiver hopes to obtain a NPDES permit, then sell the
property to a purchaser who would construct and operate the WWTP. Currently there is no
permitted wastewater treatment facility at the site. A permit was issued for a package treatment
plant in 1973, but it was never built and the permit was not renewed. In September, 2010 the
Winston -Salem Regional Office noticed a flow of black septic liquid in a ditch leading to the
Little River. Apparently a septic tank had been installed by a previous owner with no permit
from DENR or the local health department.. A NOV was issued for the unpermitted treatment
system, and the campground ceased operation while a treatment plant was designed and a permit
to discharge was applied for. The applicant has applied for a Pump and Haul permit to allow the
campground to operate in the interim. The treatment plant will be located at 3671 Pisgah
Covered Bridge Road in Asheboro, North Carolina, in Randolph County. The design capacity of
the treatment.system is 0.017 MGD. The facility will have one outfall, which will discharge to
Little River, classified Class C waters in the Yadkin River Basin. Little River is n listed as
impaired on the 2010 303d list.
C.
Little River at the discharge point has a Summer 7Q10 flow of 0.0 Since the 7010 flow
is less than 0.05, Little River is considered a Zero Flow stream. S1 a 300Q2 is 1, the 15
NCAC 02B .0206 (d) (1) rule allows the discharge permit to be issued. A Level B model was
run for a 2 mile stretch of river to verify that the stipulated 5 mg/ L BOD and 2 mg/ L ammonia -
nitrogen was protective of the instream DO standard of 5 mg/ L. Based on comments received
from the Division of Inland Fisheries, the ammonia limits were reduced to 0.5 mg/ L Summer
and Winter in order to protect endangered and threatened mussels, and UV radiation will be used
for disinfection instead of chlorine.
Fact sheet
NPDES Renewal NCO089052
Page t
ARIr�ae ame -
Receivership of Diversified Lending Group, Inc. / Zooland Family
Campground WWTP
2029 Century Park East, Third Floor, Los Angeles, CA 90067
Fa
3671 Pisgah Covered Bridge Road, Asheboro, NC
_�
0.006 MGD expandable. to 0.017 MGD
`,`...
Domestic
tr � 'Class
sa
II/ New
d �
Randol h Coun
�sy f
Little River/
1giu y' t
Winston -Salem
Yadkin River Basm
v}
C
r ,ter
E19SE/ Seagrove NC
:Not
20101ist
Jim M cKay
on
03
,1`
Ma 27, 2011
-04 -15
14.74 mr2
.:..
0.03
0.5
46.76S
4952
SUMMARY
Zooland Family Campground is a small campground located near the Uwharrie National Forest
outside of Asheboro, NC. It is subject to federal court, and is currently held by a receiver due to
foreclosure on a promissory note. The receiver hopes to obtain a NPDES permit, then sell the
property to a purchaser who would construct and operate the WWTP. Currently there is no
permitted wastewater treatment facility at the site. A permit was issued for a package treatment
plant in 1973, but it was never built and the permit was not renewed. In September, 2010 the
Winston -Salem Regional Office noticed a flow of black septic liquid in a ditch leading to the
Little River. Apparently a septic tank had been installed by a previous owner with no permit
from DENR or the local health department.. A NOV was issued for the unpermitted treatment
system, and the campground ceased operation while a treatment plant was designed and a permit
to discharge was applied for. The applicant has applied for a Pump and Haul permit to allow the
campground to operate in the interim. The treatment plant will be located at 3671 Pisgah
Covered Bridge Road in Asheboro, North Carolina, in Randolph County. The design capacity of
the treatment.system is 0.017 MGD. The facility will have one outfall, which will discharge to
Little River, classified Class C waters in the Yadkin River Basin. Little River is n listed as
impaired on the 2010 303d list.
C.
Little River at the discharge point has a Summer 7Q10 flow of 0.0 Since the 7010 flow
is less than 0.05, Little River is considered a Zero Flow stream. S1 a 300Q2 is 1, the 15
NCAC 02B .0206 (d) (1) rule allows the discharge permit to be issued. A Level B model was
run for a 2 mile stretch of river to verify that the stipulated 5 mg/ L BOD and 2 mg/ L ammonia -
nitrogen was protective of the instream DO standard of 5 mg/ L. Based on comments received
from the Division of Inland Fisheries, the ammonia limits were reduced to 0.5 mg/ L Summer
and Winter in order to protect endangered and threatened mussels, and UV radiation will be used
for disinfection instead of chlorine.
Fact sheet
NPDES Renewal NCO089052
Page t

The system will be built in two stages. The first stage with 6,000 gallons per day capacity will
consist of
♦ 8,000 gallon septic tank influent receiving basin
♦ 3,00.0 gallon flow equalization tank
♦ Duplex submersible pumps
♦ 2800 gallon Moving Bed Biofilm Reactor
♦ Duplex blower system
♦ Bioclere with integral clarifier
♦ 2,000 gallon filter feed tank
♦ Two tertiary sand filters
+ Alkalinity feed system with one pump
♦ Ultra- violet light disinfection system
♦ Effluent flow meter with recorder
♦ Backup generator and transfer switch
The second stage, with an additional capacity of 11,000 gallons per day will consist of.
♦ 10,000 gallon septic tank influent receiving basin
♦ 3,000 gallon flout+ equalization tank interconnected to existing flow equalization tank
♦ Duplex submersible pumps
♦ 5000 gallon Moving Bed Biofilrn Reactor
♦ Duplex blower system
♦ Bioclere with integral clarifier
♦ 2,000 gallon filter feed tank (existing)
♦ One additional tertiary sand filter
♦ Ultra - violet light disinfection system
♦ Effluent flow meter with recorder (existing)
♦ Backup generator and transfer switch (existing)
DMR Data Review
This permit is for a proposed new WWTP. There is no DMR data.
TOXICITY TESTING
Current Requirement: New permit.
Recommended Requirement: None.
INSTREAM MONITORING
Instream monitoring will be required for temperature and dissolved oxygen. The Upstream
sample point should be at least 100 feet upstream of the discharge point. The Downstream
sample should be taken about 2 miles downstream at NCSR 1127. This location corresponds to
the DO sag location predicted by a Level B WQ model.
COMPLIANCE SUMMARY
New permit.
Reasonable Potential Analysis (RPA)
New permit.
PROPOSED CHANGES
New permit.
Fact Sheet
NPDES Renewal NCO089052
Page 2

l
PROPOSED SCHEDULE FOR PERMIT ISSUANCE
Draft Permit to Public Notice: April 27, 2011
Permit Scheduled to Issue: June, 2011
STATE CONTACT
If you have any questions on any of the above information or on the attached permit, please
contact Jim McKay at (919) 807 -6404.
NAME: DATE: 6r O /1
NPDES SUPERVISOR
NAME: DATE:
REGIONAL OFFICE COMMENT
NAME''7Z/�it�'�"` 1 DATE: J
�t
Fact Sbect
NPDES Renewal NC0099052
Page 3

DIEHL & PHILLIPS, P.A.
CONSULTING ENGINEERS
219 East Chatham Street
Cary, North Carolina 27511
Telephone [phone] — Fax [phone]
March 29, 2011
Mr. Jim McKay
Division of Water Quality
Surface Water Protection Section - NPDES
1617 Mail Service Center
Raleigh, NC 27699 -1617
Re: Your Request for Additional Information
Engineering Alternatives Analysis (EAA) for
Zooland Family Campground
Dear Mr. McKay:
WILLIAM C. DIEHL, P.E.
JOHN F. PHILLIPS, P.E.
ALAN R. KEITH, P.E.
In response to your request, we have further investigated the feasibility of Alternative No. 4,
"Wastewater Treatment System, with Effluent Disposal through Subsurface Drip Irrigation
Lines ", as described in the above - referenced EAA. Although this alternative had a present worth
that was 15% greater than the discharge alternative, you indicated that the Division wanted us to
further explore Alternative No. 4. The Division was concerned that the discharge alternative (No.
6) would require a relatively sophisticated treatment system to meet the stringent limits that
would be issued, and that consistent compliance for some small treatment systems with similar
limits has been a problem in the past.
Alternative No. 4 required additional land be purchased to allow the installation of a subsurface
disposal system and a 100% repair area. The amount of additional land required was estimated to
be 17.77 acres in the EAA, and was preliminarily located south of the campground property
(there are no suitable areas on the campground property due to site grading and utility
installations done in the past, so additional land would have to be purchased to implement this
alternative).
The campground is bounded by the Little River on the north and east sides of the property, and
by Pisgah Covered Bridge Road on the west side. The tract of land on the south side of the
campground is a 58.61 -acre tract owned by the Emma P. Williams heirs. The Williams heirs also
own a second tract of 37.70 acres that is contiguous to and south of the 58.61 -acre tract. The
property south of the campground was identified in the EAA as the most favorable off -site land
as it was contiguous to the Zooiand Campground property, it was on the side of the campground
where the wastewater treatment system would be located, and it could be reached without pipe
crossings of the Little River or of Pisgah Covered Bridge Road. Diehl & Phillips, P.A. sent a

Mr. Jim McKay
March 29, 2011
Page 2 of 3
letter by Certified Mail to the contact person for the Williams heirs, Ms. Leta Rice. The letter
was mailed March 7, 2011, and was received by Ms. Rice on March 9, 2011. The letter included
a questionnaire that asked if the heirs would be interested in selling approximately 20 acres of
the adjacent property to the Campground, for use as sub- surface wastewater disposal and repair
areas. Copies of the letter to Ms. Rice and the questionnaire are attached. We requested the
questionnaire be returned by Friday, March 25, 2011; if it was not returned we would interpret
that as meaning the heirs had no interest in selling 20 acres of their property to the Campground
owners. We did not receive any response by the 25th, but Ms. Rice contacted me by phone on the
morning of March 28th. She indicated that the heirs would not be interested in selling the 20
acres required by the Campground (assuming the soils were suitable for wastewater disposal).
She did indicate the heirs would only be interested in selling all of their property — 58.61 +
37.70, or 96.31 acres total. Under this stipulation, and using the estimated land cost of $4,000 per
acre that was used in the EAA, the present worth of Alternative No. 4 would increase from
$1,643,506 to $1,957,660. The increase would be due to the additional 78.54 acres that would
have to be purchased (96.31 acres less the minimum 17.77 acres needed), at $4,000 per acre, for
a capital cost (and present worth) increase of $314,160. The present worth of Alternative No. 4
would increase from 115% of the present worth of Alternative No. 6 (Discharge Alternative) to
138 %.
There is a 73 -acre tract located west of Pisgah Covered Bridge road, opposite of the Campground
property, which is owned ,by Mr. Dean Towery, according to Randolph County Tax Map
Information. A letter of inquiry was not sent to Mr. Towery, as the property manager of the
Campground (Mr. Larry Perry) had previously contacted Mr. Towery to determine if Mr.
Towery would consider selling a portion of his property for use by the Campground. Mr. Towery
indicated to Mr. Perry that he was absolutely not interested in selling any of his property to the
Campground for wastewater disposal and repair areas.
There is a 509 -acre tract northeast of the campground property, owned by' The Farm at Little
River, LLC. The possibility of acquiring land from this tract was not investigated because (1) it
would require pipe crossings (drip, irrigation supply and flush return pipes) of the Little River to
reach the site, and (2) The Farm at Little River, LLC was recently formed (in 2008) as a cattle
farming operation, and in our opinion it would be unlikely that the LLC would be willing to sell
a portion of the land that it had just acquired in December 2008.
A map developed from the Randolph County GIS system is attached, showing the Campground
property and the adjacent tracts discussed herein.
Based on the unfavorable responses received from the two most geographically suitable adjacent
properties, and the difficulty of accessing the third adjacent property, we request DWQ favorably
consider the applicant's request for an NPDES discharge, permit for the Little River. The
discharge permit alternative now appears to be even more cost effective when compared to the
land based disposal alternatives, based on the additional investigation of the adjacent properties.

Mr. Jim McKay
March 29, 2011
Page 3 of 3
While we understand the Division's concern regarding the past compliance record for many
small treatment systems with stringent discharge limits, it should be noted that the installation of
a subsurface disposal wastewater system as described in Alternative No. 4 would also require a
very similar treatment system to meet the required limits. The TS -II standards (ref. 15A NCAC
18A.1970(a)) that would be required for this system would limit effluent BOD5 to <10 mg/l,
Total Suspended Solids to < 10 mg/l, Ammonium Nitrogen to <10 mg/l, Total Nitrogen to <20
mg/l or >60% removal, and fecal coliform to <1,000 CFU /100 ml. The treatment system required
for a subsurface disposal system would have to be capable of de- nitrification to achieve the
required TN reductions, meaning the nitrification would have to be carried to near - completion,
resulting in actual ammonium nitrogen concentrations on the order of 2 mg/l or less.
The burden will be on the owners of the Campground to have the treatment system well operated
by a licensed operator, and the operator will have to maintain compliance with relatively strict
effluent limits, regardless of whether the effluent disposal is by a discharge to surface waters or
by subsurface disposal. The principal difference of the two types of systems is the surface
discharge alternative has a present worth that is several hundred thousand dollars less expensive
than the land -based disposal alternatives, making it the only cost effective option of the
environmentally sound alternatives.
We request the Division proceed with drafting and advertising the NPDES permit, based on the
previously submitted EAA and the additional information provided in this letter. Thank you for
your continued assistance in this matter.
Yours very truly,
Diehl & Phillips, P.A.
T l4.
John F. Phillips, P.E.
Enclosures
Cc: Mr. David Gill
Mr. Larry Perry
Mr. Mike Mickey, WSRO DWQ