NC0062481_Permit Issuance_20061102

wArl�q��
r
Michael F. Easley, Governor
William G. Ross Jr., Secretary
North Carolina Department of Environment and Natural Resources
Mr. Michael J. Myers
Heater Utilities, Inc.
202 MacKenan Ct.
Cary, NC 27511
November 2, 2006
Alan W. Klimek, P.E. Director
Division of Water Quality
Subject: Adjudicatory Settlement / Final Permits
NPDES Permits NC0056154, NCO060593 NC0062481 NC0063355,
NC0074772, NC0075205 & N 00 0691
Bridgeport, Spinnaker Bay, Mallard Head, Killian's Crossroads,
Diamond Head, Alexander Island & Windemere WWTPs
Catawba, Lincoln & Iredell Counties
Dear Mr. Myers:
Subsequent to Heater Utilities, Inc.'s adjudication of the subject NPDES permits originally released in
2005, and in accordance with the terms of the Settlement Agreement established between Heater
Utilities, Inc. and the Division of Water Quality to resolve matters in dispute within the terms of the
2005 permits, we are forwarding the attached NPDES discharge permits. These permits are 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 May 9, 1994
(or as subsequently amended).
These final permits include no changes from the draft permits sent to you on August 30, 2006.
Please be advised of the following conditions within these permits that are significantly different from
those found in the currently active permits:
• Where the existing permits had monthly average limits for ammonia nitrogen, daily maximum limits
for ammonia nitrogen have been added to those permits. These limits become applicable on the
effective date of the permits.
• For each of the permits, the fecal coliform monitoring frequency during the summer months has
been set at 3 days per week.
• For each of the permits, a new section titled "Operations" has been added. Within the section are
terms calling for 1.) the installation of turbidimeters to measure effluent turbidity, with the ability to
automatically communicate to the plant operator if a reading of 10 nephelometric units or higher is
detected; 2.) installation of SCADA systems, and 3.) daily inspection of the plants' disinfection
systems and documentation of those inspections.
North Carolina
Natura!!y
North Carolina Division of Water Quality 1617 Mail Service Center Raleigh, NC 27699-1617 Phone [phone] Customer Service
Internet: www.ncwaterguality.org Location: 512 N. Salisbury St. Raleigh, NC 27604 Fax [phone]
An Equal Opportunity/Affirmative Action Employer — 501/o Recycled/l0% Post Consumer Paper

Mr. Michael J. Myers
Heater Lake Norman Permit Renewals
p. 2
• A condition has been added describing forms of public notification that must be made in the event of
a discharge of untreated or undertreated wastewater from the permitted facilities.
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.
Please note that this permit is not transferable except after notice to the Division. The Division may
require modification or revocation and reissuance of the permit. This permit does not affect the legal
requirements to obtain other permits which may be required by the Division of Water Quality or permits
required by the Division of Land Resources, the Coastal Area Management Act or any other Federal or
Local governmental permit that may be required.
It is expected that the issuance of these permits resolves all matters associated with the adjudication of
the 2005 permits and thereby, all pending action within the jurisdiction of the Office of Administrative
Hearings may be withdrawn.
If you have any questions concerning these permits, please contact Bob Sledge at telephone number
[phone], extension 547.
Sincerely,
"Ian W. Klimek, P.E.
cc:vCentral;Files
MRO — Surface Water Protection Section
WRMS Unit,
Attorney General's Office — Anita LeVeaux
t "

Permit Number: NCO062481
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,
Heater Utilities; Inc.
is hereby authorized to discharge wastewater from a facility located at
Mallard Head Condominiums
NCSR 1112
Near Mooresville
Iredell County
to receiving waters designated as an unnamed tributary to Reeds Creek in the Catawba River
Basin in accordance with effluent limitations, monitoring requirements, and other conditions set
forth in Parts I, H, III and IV hereof.
This permit shall become effective December 1, 2006.
This permit and authorization to discharge shall expire at midnight on March 31, 2010"`
Signed this day November 2, 2006.
(A AA�
Alan W. Klimek, P.E., Director
Division of Water Quality
By Authority of the Environmental Management Commission

Permit Number: NC0062481
SUPPLEMENT TO PERMIT COVER SHEET
All previous NPDES Permits issued to this facility, whether for operation or discharge are
hereby revoked. As of this permit issuance, any previously issued permit bearing this number is
no longer effective. Therefore, the exclusive authority to operate and discharge from this facility
arises under the permit conditions, requirements, terms, and provisions included herein. °
Heater Utilities, Inc. is hereby authorized to:
I. Continue to operate an existing 0.01 MGD wastewater treatment system which includes the
following components:
➢ Bar Screen
➢ Aeration basin
➢ Clarifier
➢ Chlorine contact chamber with tablet chlorination
➢ Dechlorination facilities
➢ Digester
➢ Cascade Post Aeration
This wastewater treatment system is located at the Mallard Head Condominiums on NCSR 1112
near Mooresville in Iredell County.
2. After receiving an Authorization to Construct from the Division of Water Quality, construct
the necessary components to upgrade the wastewater treatment system to 0.02 MGD.
3. Discharge from said treatment works at the location specified on the attached map into an
unnamed tributary to Reeds Creek, classified WS-IV & B CA waters in the Catawba River
Basin.

Latitude: 35°33'43"
Longitude: 80154' 22"
Quad # E15SW
Receiving Stream: UT Reeds Creek
Stream Class: WS-IV & B CA
Subbasin: 30832
NCO062481
Heater Utilities
Mallard Head
Facility
Location
V ®h
SCALE 1:24000

Permit Number: NCO062481
A. G.) EFFLUENT LIMITATIONS AND MONITORING REQUIREMENTS
During the period beginning on the effective date of the permit and lasting until expansion
above 0.01 MGD, the Permittee is authorized to discharge treated wastewater from outfall 001.
Such discharges: shall be limited. and monitored by the Permittee as specified below:
Effiuent .
Characteristics
Monitoring Requirements
_
Monthly ;
Average '
Daily ;
..Maximum
Measurement
Frequency,,Location.,
Sample Type;
Sample
Flow
0.01 MGD
Weekl
Instantaneous
I:or E
BOD, 5-day, 200C
1.8.0 m /L
27.0 rn /L
Weekly
Grab
E
Total Suspended Residue
30.0 m /L
45.0 m /L
Weekly
Grab
E
NH3-N summer2
2.0 m /L
10.0 m /L
Weekl
Grab
E
NHs-N winter2
4.0 m /L
20.0 ni /L
Weekly
Grab
E
Dissolved Oxygen3
Weekly
Grab ,
E
Fecal Coliform (summer)2
(geometric mean
200/ 100ml
400/ 100ml
3/week
Grab
E
Fecal Coliform (winter)2
(geometric mean)
200/ 100ml
400/ 100ml
Weekly
1-
Grab
E
Total Residual Chlorine
17 /L
2/Week
Grab
E
Temperature
Daily
Grab
E
Temperature
Weekly
Grab
U, D
H4
Weekly
Grab
E
rbotnotes.
1. Sample Location: I- Influent, E — Effluent, U- Upstream, at least 100 feet upstream from the
outfall, D- Downstream at NCSR 1114.
2. Summer is defined as the period from April 1 through'October 31, while winter is defined
as November 1 through March 31.
3. The daily average dissolved oxygen effluent concentration shall not be less than 6.0 ing/L.
4. The pH of the effluent shall not be less than 6.0 nor greater than 9.0 (on the standard units
scale).
There shall be no discharge of floating solids or visible foam in other than trace amounts.

Permit Number: NCO062481
A. (2.) EFFLUENT LIMITATIONS AND MONITORING REQUIREMENTS
During the period beginning after expansion above 0.01 MGD and lasting until expiration,
the Permittee is authorized to discharge from outfall 00L Such discharges shall be limited and
monitored by the Permittee as specified below:
Effluent , ._ .:. _
Characteristics
Monitoring Requirements
Monthly
Average .
Daily _' �Measurement
Maximum
Frequency
Sample Type
Sample
Locationl
Flow
0.02 MGD
Continuous
Recorder
I or E
BOD, 5-day, 200C
5.0 rn /L
7.5 m /L
Weekly
Grab
E
BOD, 5-day, 20°C
10.0 m /L
15.0 m /L
Weekly
Grab
E
Total Suspended Residue
30.0 m /L
45.0 m /L
Weekly
Grab
E
NHs-N summer2
2.0 m /L
10.0 m /L
Weekly
Grab
E
NHs-N wintery
4.0 m /L
20.0 m /L
Weekly
Grab
E
Dissolved Oxygen3
Weekly
Grab
E
Fecal Coliform (summer)2
(geometric mean
200/ 100ml
400/ 100ml
3/week
Grab
E
Fecal Coliform (winter)2
(geometric mean
200/ 100ml
400/ 100ml
Weekly
Grab
E
Total Residual Chlorine
17 /L
2/Week
Grab
E
Tem erature
Daily
Grab
E
Temperature
JWeekly
Grab
U, D
H4
I
Wee ly
Grab
E
Footnotes:
I. Sample Location: I- Influent, E — Effluent, U- Upstream at least 100 feet upstream from the
outfall, D- Downstream at NCSR 1114.
2. Summer is defined as the period from April 1 through October 31. Winter is defined as
November 1 through March 31.
3. The daily average dissolved oxygen effluent concentration shall not be less than 6.0 mg/L.
4. The pH of the effluent shall not be less than 6.0 nor greater than 9.0 (on the standard units
scale).
There shall be no discharge of floating solids or visible foam in other than trace amounts

Permit Number: NCO062481
A. (3.) SPECIAL CONDITION — Operations
Pursuant to the terms of the Settlement Agreement established between Heater Utilities, Inc. and the
Division of Water Quality, signed on June 26, 2006, Heater Utilities, Inc. shall:
(a) Install a turbidimeter at the plant to measure turbidity in the plant effluent, and set the turbidimeter
to notify the plant operator automatically in the event that the turbidimeter records a reading of 10
nephelometric turbidity units or greater;
(b) Inspect the performance of the plant's disinfection system every weekday and maintain a log of
such inspections; and
(c) Install a Supervisory Control and Data Acquisition (SCADA) system at the plant.
A. (4.) SPECIAL CONDITION — Spill Notification
(a) Contacting Public Health Directors
The facility must notify the Iredell, Lincoln, Catawba, and Mecklenburg County Public Health Directors
within 12 hours of first knowledge by the owner/operator of any discharge of untreated wastewater to
waters of the State or a discharge from the wastewater treatment plant that has not received adequate
disinfection due to a malfunctioning treatment unit.
The County Public Health Directors can be contacted using the following information:
Catawba County Health Director
3070 11`s Ave. Dr. S.E.
Hickory, NC 28602
828-695-5800
Lincoln County Health Director
151 Sigmon Rd.
Lincolnton, NC 28092-8643
704-736-8634
(b) Public Notification
Iredell County Health Director
318 Turnersburg Highway
Statesville, NC 28625
704-878-5302
Mecklenburg County Health Director
249 Billingsley Rd.
Charlotte, NC 28211
704-336-4700
The facility must notify the public of untreated wastewater spills. Wastewater facility owners or
operators must issue a press release after a discharge to surface waters of 1,000 gallons within 48 hours of
first knowledge of the spill by the owner/operator. The press release must be issued to "all electronic and
print news media outlets that provide general coverage in the county where the discharge occurred." A
copy of the press release must be maintained for one year by the owner/operator. This press release is
required in addition to the permit requirement of contacting the North Carolina Division of Water Quality
(DWQ).

Permit Number: NCO062481
A. (4.) SPECIAL CONDITION — Spill Notification, continued
If a discharge of 15,000 gallons or more reaches surface water, a public notice is required in addition to
the press release. The public notice must be placed in a newspaper having general circulation in the
County in which the discharge occurred and the county immediately downstream. At a minimum the
notice should be published in a newspaper of general circulation in Iredell, Lincoln, Catawba, and
Mecklenburg Counties. If a discharge of 1,000,000 gallons of wastewater or more reaches surface waters,
the DWQ regional office must be contacted to determine in what additional counties, if any, a public
notice must be published. A copy of these public notices and proof of publication, must be sent to the
DWQ within 30 days of publication. The copy should be sent to the following address:
PERCS Unit
Division of Water Quality
1617 Mail Service Center
Raleigh, NC 27699
The minimum content of the notice is the location. of the discharge, estimated volume, water body
affected and steps taken to prevent future discharges.

75/.
NORTH CAROLINA
IREDELL COUNTY
AFFIDAVIT OF PUBLICATION
Before the undersigned, a Notary Public of Catawba County,
North Carolina, duly commissioned, qualified, and authorized
by law, to administer oaths, in said County and State; that he/
she is authorized to make this affidavit and sworn statement;
that the notice or other' legal advertisement, a true copy of
which is attached hereto, was published in the
Statesville Record and Landmark
on the following dates:
and that the said newspaper in which such notice,
or legal advertisement was published, was a newspaper
meeting all of the requirements and qualifications of Section
1-597 of the General Statutes of North Carolina.
OA,stantookkeeper
aratrrtrwry�,_
MCK/'ro► Sworn to and subscribed before me, this
AN,
day of .2006
wow �
:• #06801107)(6!
of Public
•
9� •� My Commission Expires 024 l
C� �P
VI.., : 'STATE OF K}
,"NORTH CAROLINA
ENVIRONMENTAL
MANAGEMENT ,
COMMISSION/ ,
NPDES UNiT
161�.MAIL SERVICE
CENTER
RALEIGH; NC 276*1617
NOTIFICATION OF INTENT
O' -�' ASSUE *'NPDES
";. WASTEWAkq PERMir:>;a,`
On the .basis of thorough staff.
:. review and application' of NO
°:!General Stahb-'14321;:'Public
law' 92-SM • and `other..lawful,
standards and regulations, the
North• Carolina EnvironmentaF
,-Management,Commissionpro
poses .to issue a Nallonal PoF
rge Penpn to: the per
listed . below he
ys from the publish date.:
notice s
r ". commends regarding-.
oposed : permitbe
led ' until so • daysafter
ml',sh date of ,thin, notice.
the , proposed, peril: The =�'
rector -of the::NC % Division of
Water ,Quardy. ,may decide to
hold'a pubtio meeting for the:
proposed permit should the Di -
;vision' :receive . slgniticant.
degree of public; Nterest _ :;'z „-,-
Copies,of tha draft permft and
other <'suppoding oration
on file used to determine con-:'
d�tione.: present :. in ; the -draft.
permit are available - re-_.
quest and payment -upon the'
costs of reproduction Marl_
comment androu rereqquests for,
information to the. NO Division :.
'of`Water Qualr�ryy •et the above.:
-'address - •21'Ah9:`-; aid P`z
Source Branch .4d (919) , 733-.,
5083; extension:.363•,or 1W.,
Please 'andude"ihe NPDES
penmft-.- number. (attached)' in
any communication. interested
persons may also visitthe Dk
vision of Water.0ualdy - at512,
N... Salisbury Street Raleigh.:
NO 27604.1148 between, the
hours.: cf -6:00 a m: and 5:00
pmrto rm review infoation of;
file =
Heater Uhirhes Inc ':.(P.O.
Drawer:' 488U - Cary;" NO
i 27519) has applied for renewal
of NPDES`penm=N00056154.
for the,' Bndgepod WWTP in
.: Iredell,:County. ° This permitted;
,.facility 'discharges.` � 0.08 treet-
- ed . wastewater'- to Catawba
River in the'Catawba'River Be.
sin. CurrentlyBOD; ammonia .
nitrogen : and total residual
chlorine" .are` 4 water: quality
limited. This discharge may;
affect -future allocations In"this
portion' of -the :Catawba•River
Basin:;The terms of this; pemift
have been modified from those
.contained in the one placed at-:

I Drawer 4889i Cary NC 275f9)
has applied =Ici;l
for renewof
r
delr"Coanfaciii :dis-
i charges treated wastewater to
an unnamed ;tributary to
!Reeds, Creek in the Catawba
!River Basin. CurrenHtlyy• BOD,
ammonia nitrogen an 'total re='
sidual chlorine are water
{ quality` limited'.. This discharge
may affect future allocations inthis portion .of the Catawba
River Basin. The terms of the
ppeermft have been ' modified-.
Vom those contained in the
one placed at public notice in
++ 2005. '
"Heater""UGINes Inc.. (P.O.
Drawer 4889,Cary, NC
27519) has applied for renew-
al - of - NPDES permit
i NC0074772 for:: the Diamond.
Head WWTP. in Iredell County.,
This permitted facility'' dis-
charges 0.1 : MGD:.Veeted
wastewater to Lake Norman
(Reeds .Creek .-,; , Arm) ; in the
Catawba River Basin: Cur-
rently 'i BOD, ammonia initro-.
gen; and "total . residual chlo-
fine are water<quality limited..
This discharge i may affect fu-..
'.lure :, allocations : in, this
portion; of the Catawba -River,
Basin.= The terns; ;. of • this-:
pertnft have `been ' modified .
Vom 'those - contained in the
one placed at public 1-notice in
2005.,
Heater Utilities,-: Inc.:. (Pa
;Drawer 4889,;:Cary,;; NC.
, "27519) .has applied for renew -
:al of NPDES.. permit
NC0075205161 the Alexander
Island WWTP An Iredell
i County. This. permitted .,tacildy'
:discharges 0.015 MGD treat'
I ed — wastewater to -,Catawba'
i River (lake : Norman) = in ; the
Catawba River -Basin; Current-
ly BOD and total residual chlo-
-
nne are 'water: quality limited
.This .discherga'may`aHect fu
tureallocations m this portion
of the Catawba. River Basin
The terns of'. this permit: have ,
been. modified form those c0n,,
tsfned : in 1Wroneplaced at
,public notice in.2005,`- 4­
Heater U0lities Inc .: (P.O.
Drawer - 4889,. Cary, . NC
..27519). has applied for renew
.el of -NP ES permit_
NO0080691 tor;_tha Winde-.
mere '• SubdNisiob WINTP _ In
Iredell ;County, , Is permitted
be River in the Catawbajiwer
BasIrC, Curently",BOD;.ammo; -
rim n"en, and. total ,residual
chlorine are•'_water''quality.
Aimhodr This discharge may a -'.-,4
fecC` future': allocations in this
'portion'. of, the Catawba, River;
Basin. he terms'of this pwmft�.
have been modified from those;,
contained in the dne placed-OU
public notice in 2005.
Publish Seutember 12, 2W6.

Michael F. Easley, Governor
W A T F9QG
MEMORANDUM
William G. Ross Jr., Secretary
North Carolina Department of Environment and Natural Resources
August 30, 2006
To: Britt Setzer
NC DENR / DEH / Regional Engineer
Mooresville Regional Office
From: Bob Sledge 49�
NPDES Western Unit
Subject: Review of Draft NPDES Permit NCO062481
Heater Utilities, Inc. — Mallard Head Condominiums WWTP
Iredell County
Alan W. Klimek, P.E. Director
Division of Water Quality
REcEWp ice
AUG 3 20n
Please indicate below your agency's position or viewpoint on the draft permit and return this form by
October 2, 2006. If you have any questions about the draft permit, please contact me at (919) 733-
5083, extension 547, or via e-mail at [e-mail].
RESPONSE: (Check one)
IXConcur with the issuance of this permit provided the facility is operated and maintained properly,
the stated effluent limits are met prior to discharge, and the discharge does not contravene the
designated water quality standards.
nConcurs with issuance of the above permit, provided the following conditions are met:
1-1 Opposes the issuance of the above permit, based on reasons stated below, or attached:
Signed Date:
attachment
cc: NPDES Permit File
North Carolina Division of Water Quality 1617 Mail Service Center Raleigh, NC 27699-1617 Phone [phone]
Internet: www.ncwaterquality.ory Location: 512 N. Salisbury St. Raleigh, NC 27604 Fax [phone]
" Carolina
NoNaturally
Customer Service
1-877-623-6749
An Equal opportunity/Affirmative Action Employer — 50% Recycled/10% Post Consumer Paper

STATE OF NORTH CAROLINA IN THE OFFICE OF
ADNIMSTRATIVE HEARINGS
COUNTY OF IREDELL
Nos. 05 EHR 1172, 05 EHR 0944,
COUNTY OF CATAWBA 05 EHR 94.5, 05 EHR 0946, 05 EHR 0947,
05 EHR 0943 and 05. EHR 1173
HEATER UTILITIES, INC: )
NPDES NC6060593, NC0056154, )
NC 0062481, NCO06335, NC0074772, : )
NCO075205 and NC0080691, )
Petitioner, )
V. )
UN
NORTH CAROLINA DEPARTMENT OF ) aV OF fy
ENVIRONMENT acid NATURAL ) p� ATEq
RESOURCES, DIVISION OF WATER )'$ ��iY
QUALITY, )
eE
Respondent. )
SETTLEMENTAGREEMENT
The North Carolina- Division of :Water --Quality ("DWQ"-) of the, Department of
Environment and- Natural Resources, under authority delegated by the North Carolina
Environmental Commission ("EIVMC"), and Heater Utilities, .Inc. ("Heater"), hereby enter into this
Settlement Agreement ("Agreement") in order to amicably .resolve the matters in controversy
between them regarding the above -captioned contested cases.
PROCEDURAL BACKGROUND
1 On June 14, 2005, Heater filed fivepetitions, 05 EHR 0943, 05 EHR 0944,
05 EHR 0945, 05 EHR 0946 and 05 EHR 09475 for contested case hearing in the Office of
Administrative Hearings ("OAH") to appeal certain terms, conditions, and limitations contained

a
in NPDES permits issued by DWQ to Heater for five wastewater treatment facilities in Catawba
and Iredell counties.
2. On July 18, 2005, the Court granted the Heater's consent motion to consolidate
the five petitions for contested case hearing.
3. On July 25, 2005, Heater filed two additional petitions for contested case hearing
to appeal certain terms, conditions, and limitations contained in additional NPDES permits
issued by DWQ to Heater for two wastewater treatment facilities in Catawba and Iredell, counties
by DENR.
4. On August 3, 2005, the Court issued an order consolidating case numbers 05 EHR
1172 and 05 EHR 1173.
5. On August 26, 2005, Heater filed a motion to consolidate cases 05 EHR 1172 and
05 EHR 1173 with the five previously consolidated cases so that all of the seven cases could be
considered together.
6. On September 12, 2005, the Court granted the parties Consent Motion to Stay
Proceedings to allow the parties to pursue settlement negotiations.
7. As stated in N.C.. Gen. Stat. § 150B-22, it is the public policy of the State of North
Carolina to resolve administrative disputes informally whenever possible.
AGREEMENT
8. DWQ will withdraw the most recently issued versions of the NPDES permits . .
("the Contested Permits") for Heater's Alexander Island, Bridgeport, Diamond Head, Killian
Crossroads, Mallard Head, Spinnaker Bay and Windemere wastewater treatment plants ("the
Lake Norman Plants") (Permit Numbers NC0075205, NC0056154, NC0074772, NC0063355,
NC0062481, NC0060593, and NC0080691) respectively.

9. Heater shall be authorized to continue operating the Lake Norman Plants pursuant to
the terms of the permits in effect for the Lake Norman Plants immediately prior to the issuance of
the Contested Permits, until final new permits for the Lake Norman Plants are issued by DWQ.
DWQ shall prepare a new draft NPDES permit for each of the Lake Norman Plants that contains
the following conditions:
(a) a requirement that Heater (i) install a turbidimeter at the plant to measure
turbidity in the. plant effluent, and (ii) set the turbidimeter to notify the plant operator
automatically in the event that the turbidimeter records a reading of 10 nephelometric turbidity
units or greater;
(b) a requirement that Heater inspect the performance of the plant's disinfection
system every weekday and maintain a log of such inspections;
(c) a requirement that Heater sample and analyze plant effluent for fecal coliform
three times per week;
(d) . for the Bridgeport, Diamond Head, Mallard Head, and Spinnaker Bay plants,
a requirement that Heater install Supervisory Control and Data Acquisition ("SCADA") systems
on -or before May 26, 2006; and
(e) for the Windemere, Killian Crossroads and Alexander Island plants, a
requirement that Heater install SCADA systems on or before July 3, 2006.
10. The new draft NPDES permits for the Lake Norman Plants shall not contain a
'r
requirement that Heater perform fecal coliform sampling and analysis more than three dayweek.
Except as provided herein, and with the exception of any necessary clerical corrections, the new
draft NPDES permits for the Lake Norman Plants shall be identical to the Contested Permits.

11. DWQ shall provide the public with notice of, and an opportunity to comment on,
the new draft NPDES permits for the Lake Norman Plants in accordance with standard DWQ
procedures.
12. Within 10 days following receipt of notice from DWQ of the issuance of the new
draft NPDES permits for the Lake Norman Plants, Heater will withdraw its petitions for contested
case hearing in all matters covered by this Agreement.
13. Heater and DWQ expressly stipulate and acknowledge that by entering into this
Agreement, Heater neither admits nor denies any allegations which were involved in these
contested cases.
14. This Agreement is entered into knowingly, intelligently, and voluntarily and shall
be binding upon the parties and their successors, assigns, parents, affiliates and subsidiaries upon
execution by the undersigned, who represent and warrant that they are authorized to enter into
this Agreement on behalf of the parties hereto.
15. The parties agree that the consideration for this settlement is the promises
contained herein and this Agreement contains the whole agreement between them as to the
matters addressed herein.

t
Entered into and effective this the �day of �y_ , 2006.
HEATER UTIL TIES, C.
By:
Neil R. P ill'ps, Pre ' e t
NORTH CAROLINA DEPARTMENT OF
ENVIRONMENT AND NATURAL RESOURCES
DIVISION OF WATER QUALITY
e
By:
Alan Klimek, Director