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HomeMy WebLinkAboutWQ0018708_Permit_20200402.moo ROY COOPER. ? y Governor d MICHAEL S. REGAN e Secretary S. DANIEL SMITH NORTH CAROLINA Director Environmental Quality April 2, 2020 JACK CARLISLE --MANAGER REDBIRD LAND COMPANY, Lc 8620 RIVER ROAD . . WILMINGTON, •NORTH CAROI INA 294.12 Subject: Permit No.. WQ00-1.8708 . Baytree Lakes WWTP Wastewater Irrigation System .. Bladen County Dear Mr. Carlisle: In accordance with your permit change of ownership -request received .January 13, 2020, we are . forwarding herewith Permit No. W00018708 dated' April 2, 2020, to Redbird Land Company- LLC for the , operation of the subject wastewater. treatment and irrigation facilities: . The following modif cations to the subject permit are as follows: The permittee. has changed from Luke Creek Corporation to Redbird Land Company,- LLC. This permit shall be effective from the date of issuance through February 28, 2026,.:shall void Permit No: WQ0018708 issued February 3, 20.09, and shall be subject to the conditions" and limitations therein., The Permittee shall submit a.renewal:application no later than September.i,,2025. Please pay attentio to: the monitoring* requirements- listed .Attachments A, B,. and, C.. Failure to establish an adequate system for collecting and maintaining the required operational information shall result in future compliance -problems. . This:permit contains several unique conditions that require your..attent><on: ➢ .:Condition 1. 1. A no -tap -moratorium shall be imposed on Baytree Lakes WWTP until such. time that the wastewater.; treatment: plant is - upgraded or the . collection system is upgraded/repaired to minimize -'inflow and, infiltration (1.& 1) and.an Engineering Certification is provided to the Division of Water Resources. The upgrade to .the wastewater system or collection'systeT shall be'�adequate:to handle the amount of.waste generated by.,the Baytree Lakes community and maintain'compliarice.with-the .flow limits outlined in the permit. . ➢.. Condition 1.2. Within 15 days of receipt of this permit, the attached. Notification of Sewer.. Moratorium letter.and Public Notice shall be.published in the -local -newspaper. Certification shall be sent to the Division of Water Resources Fayetteville:Regional Office, at the address provided on the moratorium letter, .indicating:the' date.thaf the Public Notice has been published. . DNorth CarolinaDepartment of Environmental'Quality I. Division of Water Resources E C 912 North Salisbury Street 1 1617 Mail Service Center I :Raleigh, North Carolina27699-1617 o�uunmtatmxanmm mmar 919.707.9000 V t . Mr. Jack Carlisle April 2, 2020.. . Page 2 of 2 A: Condition L3. — Within .15 days of receipt of this permit,- Redbird Land Company, LLC shall contact the Fayetteville Regional Office to schedule a site visit so a reconnaissance can be made -of the Baytree Lakes community to confirm the.number of homes.currently inexistence and . document the number. of homes currently under construction. Until no -tap. moratorium.is . rescinded by the Division of Water Resources; no. new connections -shall be made to. -the. collection system. Contact Trent.Allen at the -Fayetteville Regional Office at (910) 433-3336 . to schedule the site visit: . If any .parts; requirements, or.limitations contained 'in -this permit are. unacceptable, the Permittee has the -right to request an adjudicatory hearing.upon written request within 30 days. -following feceipt.of . this -permit. This request shall be in the form o f a written.petition; conforming to Chapter 150B of the North. Carolina General Statutes, and filed with the Office of. Administrative Hearings at 6714 Mail Service . Center, Raleigh, NC 27699-614. Otherwise, this permit shall -be -final and.binding.: If you need additional information concerning this permit, -please contact Ashley Kabat, at' (919) 707-3658 or ashley.kab (a ncdenr. oovv. Sincerely, 7S Daniel Sm ith; Director. Division of Water Resources . cc: Bladen County HealthDepartment (ElectroniaCopy) Fayetteville Regional Office; Water Quality Regional Operations Section (Electronic Copy) Laserfiche File (Electronic Copy) Digital Permit Archive (Electronic Copy) Central Files construction and operation of a 10,000. GPD wastewater treatment facility consisting 'of..a splitter box; 'a 6,500 gallon aeration tank; a clarifier; a 5,-000 galloon sludge storage tank; and all associated piping, valves, controls, and appurtenances; and the continued operation of a 20,0 I00 GPD wastewater treatment and irrigation facility consisting -of. an influent flow meter; a bar screen; a 4400-gallon extended- aeration plant; a 1-acre storage lagoon with at least 30- days.of.effluent storage (approximately.1.2 million.gallons);-a hypo-chlorite.injection.disinfection system 5.08 acres: of spray irrigation area on costal Bermuda- containing twenty 81.5 gallon.per minute (GPM) spray irrigation heads and ten 108.5 GPM spray irrigation heads with a spraydiameter_of 13,0 feet; and all associated :piping, valves, controls, and.appurtenances to serve the;Baytree Lakesl WWTP;: with no discharge of wastes to surface waters, pursuant to the application received January .13, 2020; and In conformity with the Division -approved .plans and specifications considered a part of this. permit. This: permit shall be effective from the date of issuance through February 28, 2026,. shall void Permit No. WQ0018708..issuedFebruar�, 3, 2009, and shall be subject to the following conditions and limitations: :. L. SCHEDULES 1. A no -tap moratorium shall be imposed on Baytree Lakes WWTP until such time -that the wastewater treatment plant: is ;upgraded or the collection system , is upgraded/repaired .to :minimize inflow ' and infiltration (I & I) And an Engineering Certification is provided .to the Division �of.. Water'Resources. The upgrade to the wastewater system or -collection system shall: be adequate.to. handle the amount of waste generated by the I Baytree Lakes community and maintain compliance with the flow limits outlined in the permit. [15A NCAC 02T .0-108(b)(1)(B.)] 2.. Within 15 'days of receipt of this permit; the- attached Notification of Sewer Moratorium letter and Public -Notice shall be published -in the local newspaper.. Certification shall be sent to the Divisionof Water Resources - Fayetteville Regional -Office; at the address -provided on the moratorium letter, indicating the date that the Public Notice has-been published..,-15A NCAC- 02T .0108(b)(I)(B)] WQ0018708 Version 2:2' Shell Version 200201 Page 1 of 11_ I Within .15 days of receipt of this permit, Redbird Land Company, LLC shall contact the Fayetteville . Regional Office to schedule a site visit so a reconnaissance can be made of -the. Baytree . Lakes community to confirm the number of homes currently in existence and document the number of.hoines currently under construction. Until this no -tap moratorium:is:rescinded by�the-Division-of-Water Resources, no. new; connections. shall be -made to . the -collection system:. Contact .Trent Allen at the Fayetteville Regional O� ice -.at :(910). 433-3336 'to schedule the site visit. [15A :NCAC 02T .0108(b)(1)(3)l 4. Upon completion of construction and prior to operation of the permitted :modifications, the. Perniittee shall submit an engineering certification- from a :North Carolina licensed Professional Engineer - certifying, that .the permitted facility has,. been constructed in- -accordance with G.S. 143-215.1,. Administrative- Code Title :15A Subchapter.02T, this:permit,. and the Division -approved plans and specifications'. For phased and partially certified facilities, the Permittee.shall retain the responsibility to track -further. construction approved under this: permit, :and shall provide a final engineering - certification upon projeccompletion. Mail the Engineering Certificationto the Division of Water. Resources; Non -Discharge :Branch, .1617 -Mail Service' Center, Raleigh; -NC -27699-1617; or Non- Discharge_Reports n,ncdenr. og_v: [15A NCAC 02T .0116(a)] 5.: The Eermittee shall'notify the Faye'tteville.Regiorial Office; .telephone.number (910) 433-3300; at least two business days in advance of initial operation of the constructed facilities so that the Division can -- conduct a startup- inspect` on. [l5A NCAC 02T :0108(b)(-1)(B)] - 6. - Prior to- Operation of the m modified P. facilities a Final O eration and Maintenance Plan shall be submitted , .. P .. for review. The plan shall be sent to'the Division of Water Resources, Non -Discharge Branch, 1617- Mail Service -Center, Raleigh, NC 27699-1617 or Non-Discharge.Reports@ncdenr.goy. [15A NCAC - 02T .0108(b)(1)(B), 02T �.0507(a).] .. 7. The Pennittee shall req ue,st renewal of this penriit on Division -approved forms no later than September 42025. [15A.NCAC 02 .0105(b), 02T .0109 .. .. .... II: PERFORMANCE STANDARDS. . 1. The Permittee shaffmaintain and operate the subject non -discharge facilities so there is no discharge to surface waters, nor any contravention of groundwater or surface water standards. In the event .the facilities fail to. perform satisfactorily, including the creation.of nuisance conditions due 'to improper operation -and maintenance,. or, failure. of the irrigation areasAo.assimilate the effluent,. the Permittee. . shall take immediate corrective actions, including Division required actions, such as the construction of additional or replacement wastewater treatment or disposal facilities.. [15A NCAC 02T. .0108(b)(1)(A)] 2. This permit shall not relieve the Permittee of.theirresponsibility for damages to groundwater or surface . water resulting from the operation of this facility. [15A NCAC 02T .0108(b)(1-)(A)] 3. Groundwater monitoring wells shall - be constructed in accordance with 15A NCAC 02C- '.0108 (Standards ofConstructionfor .Wells Other than Waier�Supply)-and.any'other jurisdictional laws and regulations pertaining to well construction. [15A NCAC 02C .0108] 4.- Effluent quality shall not exceed the limitations specif ed in Attachment A. '[15A NCAC 02T .0505(b)] 5. Application rates, whether -hydraulic, nutrient, or other pollutant, shall not exceed those specified in Attachment B. [15A NCAC 02T :0505(c), 02T .0505(n)] . WQ0018708.:Version 2.2 Shell Version 200201 Page 2 of 11: 6. Wastewater irrigation fie] is either 250 feet from whichever is closest to th beyond the compliance b compliance boundary shE ownership and permitted to determination of a. com G.S. 143-215.1(i), G.S. 1 7. The review boundary is 'Any exceedance of grot action. [15A NCAC 02 8. The Permittee shall apf any sale or transfer of pr 02L .0107(c)] 9. No wells, excluding boundary except as I 10. Except as provided' for not the Permittee and o County Register ofDef a. A notice of the. perm b. Prohibits c. Reserves the right of for purposes related The Director may termil [15A NCAC 02L .01071 s permitted on or after December 30, 1983 have a compliance boundary that ie wastewater irrigation area, or 50 feet within the property boundary, wastewater irrigation area. Any exceedance of groundwater standards at or andary shall require corrective action. Division -approved relocation of the be noted in Attachment B. Multiple contiguous properties under common )r use as a disposal system shall be treated as a single property with regard fiance boundary. [15A NCAC 02L .0106(d)(2), 02L .0107(b), 02T .0105(h), 3-215.1(k)] idway between the compliance boundary and the wastewater irrigation area. .water standards,at or beyond the review boundary shall require preventative 0106(d)(1), 02L .0108] for a permit modification to establish a new compliance boundary prior to arty affecting a compliance boundary (i.e., parcel subdivision).- [15A NCAC -approved monitoring wells, shall be constructed within the compliance for in 15A NCAC 02L .0107(g). [15A NCAC 02L .0107] 15A NCAC 02L .0107(g), the Permittee shall ensure any landowner who is land within the compliance boundary shall execute and file with the Bladen an easement running with the land containing the following items: and number or other description as allowed in 15A NCAC 02L .0107(f)(1); and operation of water supply wells within the compliance boundary; and .e Permittee or the State to enter the property within the compliance boundary the permit. the easement when its purpose has-been fulfilled or is no longer needed. WQ0018708 Version 2.2 Shell Version 200201 Page 3 of 11 i 11. The facilities herein wer i permitted per the following setbacks: a. The irrigation sites were originally permitted August 22, 2001. The setbacks for spray irrigation sites originally permitted or modified from February 1, 1993 to August 31, 2006 are as follows (all distances in feet): L 1 Each habitable 'residence or place of assembly under separate ownership: 400 ' I Each private or public water supply source: _ 100 iii. Surface waters: 100 iv. Groundwater 1 Iwering ditches: 100 v. Surface water diversions (upslope): 100 vi. Surface water diversions (downslope): 100 vii. Each well with iexception of monitoring wells: 100 viii. Each property Hine: 1502 ix. Top of slope of embankments or cuts of two feet or more in vertical height: 15 x. Each water line: xi. Each swimming 10 100 pool: xii: Public right of way: 50 xiii. Nitrification field: 20 xiv. Each building foundation or basement: 15 ' Habitable residences or places of assembly under separate ownership constructed after the facilities herein were originally permitted or subsequently modified are exempt from this setback. 2 Setbacks to property lines are not applicable when the Permittee, or the entity from which the Permittee is leasing, owns both parcels separated by the property line. [15A NCAC 02H .02190)(5)] b. The 20,000 GPD storage and treatment units were originally permitted August 22, 2001. The setbacks for storage and treatment units originally permitted or modified from February 1, 1993 to August 31, 2006 arelas follows (all distances in feet): i. Each habitable residence or place of assembly under separate ownership: 100' ii. Each private or public water supply source: -100 iii. Surface waters: 50 iv. Each well with exception of monitoring wells: 100 v. Each property line: 502 vi. Nitrification field: 20 ' Habitable residences or places of assembly under separate ownership constructed after the facilities herein were originally permitted or subsequently modified are exempt from this setback. 2 Setbacks to property lines are not applicable when the Permittee, or the entity from which the Permittee is leasing, owns both parcels separated by the property line. [15A NCAC 02H .02190)(5)] I WQ0018708 Version 2.2 Shell Version 200201 Page 4 of 11 c. The 10,000 GPD expansion treatment units were originally permitted February 3, 2009. The setbacks for storage and treatment units originally permitted or modified from September 1, 2006 to August 31, 2018 are as follows (all distances in feet): i. Each habitable ii. Each private or iii. Surface waters: iv. Each well with v. Each property 1 Habitable reside facilities herein setback. 2 Setbacks to prof Permittee is leas [ 15A NCAC 02T III. OPERATION AND MA 1. The Permittee shall 02T .0500] 2. The Permittee shall mE functions, maintenance .0507(a)] 3: Upon the Water Polk. classification of the subj operator in responsible c or their back-up shall of .0117] ;nce or place of assembly under separate ownership: 1001 �c water supply source: 100 50 )tion of monitoring wells: 100 502 or places of assembly under separate ownership constructed after the originally permitted or subsequently modified are exempt from this lines are not applicable when the Permittee, or the entity from which the owns both parcels separated by the property line. ), 02T .0506(e), 02T .0506(f)] and maintain the subject facilities as anon -discharge system. [15A NCAC an Operation and Maintenance Plan, which shall include operational zles, safety measures, and a spill response plan. [15A NCAC 02T i Control System Operators Certification Commission's (WPCSOCC) non -discharge facilities, .the Permittee shall designate and employ a certified ge (ORC), and one or more certified operators as back-up ORCs. The ORC Lte and visit the facilities as required by the WPCSOCC. [15A NCAC 02T 4. The Permittee shall maintain vegetative cover on the irrigation sites, such that crop health is optimal, allows even effluent distribution, and allows inspection of the irrigation system. [15A NCAC 02T .0507(b)] 1 5.. The Permittee shall take, measures to prevent effluent ponding inor runoff from the irrigation sites listed in Attachment B. [15A NCAC 02T .0507(c)] 6. The Permittee shall not irrigate treated effluent during inclement weather, or when the soil is in a condition that will cause 1ponding or runoff. [15A NCAC 02T .0505(x)] 7. Irrigation equipment shall be tested and calibrated once per permit cycle. [15A NCAC 02T .0507(d)] 8. Only treated effluent from the Baytree Lakes WWTP shall be irrigated on the sites listed in Attachment B. [15A NCAC 02T .05;01] 9. The Permittee shall not allow vehicles or heavy machinery on the irrigation area, except during equipment installation or, maintenance activities. [15A NCAC 02T .0507(e)] 10. The Permittee shall prohibit public access to the wastewater treatment, storage, and irrigation facilities. [15A NCAC 02T .0505(q)] 11. The Permittee shall dispose or utilize generated residuals in a Division -approved manner. [15A NCAC 02T .0508, 02T A 100]. WQ0018708 Version 2.2 Shell Version 200201 Page 5 of 11 12. The Permittee shall not divert or bypass untreated or partially treated wastewater from the subject facilities. [15A NCAC 02T .05050)] 13. Freeboard in the 1-acre storage lagoon shall not be less than two feet at any time. [15A NCAC 02T .0505(d)] 14. A gauge to monitor; waste levels in the 1-acre storage lagoon shall be provided. This gauge shall have readily visible permanent markings', at inch or tenth of a foot increments, indicating the following elevations: maximum liquid level, at the top of the temporary liquid storage volume; minimum liquid level at the bottom' of the temporary liquid storage volume; and the lowest point on top of the dam. [15A NCAC 02T .0507(h] 15. A protective vegetative cover shall be established and maintained on all berms, pipe runs, erosion control areas, surface water diversions, and earthen embankments (i.e:, outside toe of embankment to maximum allowable temporary storage elevation on the inside of the embankment). Trees; shrubs, and other woody vegetation shall not be allowed to grow on the earthen dikes or embankments. Earthen embankments shalTbe kept mowed or otherwise controlled and accessible. [15A NCAC 02T .0507(g)] i 16. Metering equipment sha 1. The Permittee shall facility's impact on 2. A Division -certified surface water param, 3. Flow through the treal reported on Form NDP flow from water usage .0108(c)] be tested and calibrated annually. [15A NCAC 02T .0507(d)] and report any Division required monitoring necessary to evaluate this iter and surface water. [15A NCAC 02T .0108(c)] itory shall conduct all analyses for the required effluent, groundwater, and [15A NCAC 02H .0800] facility shall be continuously monitored, and daily flow values shall be Facilities with a permitted flow less than 10,000 GPD may estimate their ..ds provided the'water source is metered. [15A NCAC 02T,.0105(k), 02T 4. The Permittee shall monitor the treated effluent at the frequencies and locations for the parameters specified in Attachment �. [15A NCAC 02T .0108(c)] 5. The Permittee shall maintain records tracking the amount of effluent irrigated. These records shall include the following information for each irrigation site listed in Attachment B: a. Date of irrigation; b. Volume of effluent irrigated; c. Site irrigated; d. Length of time site is irrigated; e. Continuous weekly, monthly, and year-to-date hydraulic (inches/acre) loadings; f. Continuous monthly and year-to-date loadings for any non -hydraulic parameter specifically limited in Attachment B; g. Weather conditions; land h. Maintenance of cover crops. [15A NCAC 02T .0108(I)] 6. Freeboard (i.e., waste level to the lowest embankment elevation) in the 1-acre storage lagoon shall be measured 'to the nearest inch or tenth of a foot, and recorded weekly. Weekly freeboard records shall be maintained for fve years, and.shall be made available to the Division upon request. [15A NCAC 02T .0108(c)] WQ0018708 Version 2.2 r Shell Version 200201 Page 6 of 11 i s. 7. Three copies of all!monitoring data (as specified in Conditions IV.3. and IVA.) on Form NDMR for each PPI and three copies of all operation and disposal records (as specified in Conditions IV.5. and IV.6.) on Form NDAR-1 Ifor every site in Attachment B shall be submitted on or before the,last day of the following month. If no activities occurred during the monitoring month, monitoring reports are still required documenting the j absence of the activity. All information shall be submitted to the following address: [15A NCAC 02T .0105( 8. The Permittee shall main maintained for five:year; include: a. Name of the residua b. Non -Discharge; pern agreeing to accept tl c. Date the residuals w d. Volume of residuals [15A NCAC 02T .0508( 9. A maintenance log,shall be made available to the a. Date of flow measur b. Date of irrigation eq c. Visual observations d. Record of preventati and cleanings, etc.). [15A NCAC 02T .0507( Division of Water Resources Information Processing Unit 1617 Mail Service Center Raleigh, North Carolina 27699-1617 tin a record of all residuals removed from this facility. This record shall be and shall be made available to the Division upon request. This record shall hauler; t number authorizing the residuals disposal, or a letter from a municipality - residuals; N re hauled; and kept at -this facility. This log shall be maintained for five years, and shall, [vision upon request. This log shall include: lent device calibration; )went calibration; the plant and plant site; and maintenance (e.g., changing of equipment, adjustments, testing, inspections 10. Monitoring wells MW-11 MW-2, MW-3, and MW-5 shall be'sampled at the frequencies and for the parameters specified in Attachment C. All mapping, well construction forms, well abandonment forms efer to the 'permit number and the we] [15A NCAC 02T .0105(m)] 11. Two copies of the monitoring well sampling and analysis results shall be submitted on a Compliance Monitoring Form (GW-59), along with attached .copies of laboratory analyses, on or before the last working day of the month following the sampling month. The Compliance Monitoring Form (GW-59) shall include this permit number, the appropriate well identification number, and one GW-59a certification form shall be submitted with each set of sampling results. All information shall be submitted to the following address: �. [15A NCAC 02T .0105( )] Division of Water Resources Information Processing Unit 1617 Mail Service Center Raleigh, North Carolina 27699-1617 r WQ0018708 Version 2.2 Shell Version 200201 Page 7 of 11 i 12. An annual representative soils analysis (i.e., Standard Soil Fertility Analysis) shall be conducted on each irrigation site listed in Attachment B. These results shall be maintained at the. facility for five years, and shall be made available to the Division upon request. Each Standard Soil Fertility Analysis shall include the following parameters: Acidity Exchangeable Sodium Percentage Phosphorus Base Saturation (by calculation) Magnesium Potassium Calcium Manganese Sodium Cation Exchange Capacity Percent Humic Matter Zinc Copper I pH [15A NCAC 02T .0108(c)] 13. Noncompliance Notification: The Permittee shall report to the Fayetteville Regional Office, telephone number (910) 433-3300, within 24 hours of ,first knowledge of the following: a. Treatment of wastes abnormal in quantity or characteristic, including the known passage of a hazardous substance. b. Any process unit failure .(e.g., mechanical, electrical, etc.) rendering the facility incapable of adequate wastewater treatment. c. Any facility failure resulting in a discharge to surface waters. d. Any time self;monitoring indicates the facility has gone out of compliance with its permit limitations. e. Ponding in or runoff from the irrigation sites. Emergencies requiring reporting outside normal business hours shall call the Division's Emergency Response personnel -at telephone number (800) 662-7956, (800) 858-0368, or (919) 733-3300. All noncompliance notifications shall file a written report to the Fayetteville Regional Office within five days of first knowledge of the occurrence, and this report shall outline -the actions proposed or taken to ensure the problem does not recur. [15A NCAC 02T .0108(b)(1)(A)] V. INSPECTIONS 1. The Permittee shall, perform inspections and maintenance to ensure proper operation of the wastewater treatment and irrigation facilities. [15A NCAC 02T .0507(i)] 2. The Permittee shall inspect the wastewater treatment and irrigation facilities to prevent malfunctions, facility deterioration, and operator errors that, may •result in discharges of wastes to the environment, threats to human health, or public nuisances. The Permittee .shall maintain an inspection log that includes the date and time of inspection, observations made, and maintenance, repairs, or corrective actions taken. The Permittee shall maintain this inspection log for a period of fye years from the date of the inspection, and this log shall be made available to the Division upon request. [15A NCAC 02T .0507(h), 02T .0507(i)] 3. Division authorized representatives may, upon presentation of credentials, enter and inspect any property, premises, or plane related to the wastewater treatment and irrigation facilities permitted herein at any reasonable time for determining compliance with this permit. Division authorized representatives may inspect or copy records maintained under the terms and conditions of this permit, and may collect groundwater, surface water, or leachate samples. [G.S. 143-215.3(a)(2)] " WQ0018708 Version 2.2 Shell Version 200201 Page 8 of 11 i� a 1. Failure to comply with Division enforcement ai 2. This permit is effective application, and Divisic 3. Unless specifically re( or general statutes gc NCAC 02T .0105(n)] 4. The issuance of this regulations, or ordina may require. [15A'N 5. If the permitted facilitii submit a permit modifi all terms and conditions 215.1(6)] 6. The Permittee shall'ret permitted herein. [15A conditions and limitations contained herein may subject the Permittee to a n. [G.S. 143-215.6A, 143-215.6B, 143-215.6C] y with respect to the nature and volume of wastes described in the permit pproved plans and specifications. [G.S. 143-215. 1 (d)] d and approved in this permit, there -are no variances to administrative codes ng the construction or operation of the facilities permitted herein. [15A pit does not ekempt the Permittee from complying with all statutes, rules, that other jurisdictional government agencies (e.g., local, state, and federal) 02T .0105(c)(6)] change ownership, or the Permittee changes their name, the Permittee shall lion request on Division -approved forms. The Permittee shall comply with f this permit until the permit is transferred to the successor -owner. [G.S. 143- airi a set of Division -approved plans and specifications for the life of the facilities NCAC 02T .0105(o)] 7. The Permittee shall maintain this permit until the proper closure of all facilities permitted herein, or until the facilities permitted herein are permitted by another authority. [15A NCAC 02T .0105(j)] 8. This permit is subject to whole or part for: a. violation of any terr 02T; b. obtaining a permit b c. the Permittee's refus i. ` to enter the Perr to be kept; ii. to have access t( iii. to inspect any m iv. to sample any p( d. the Permittee's.failu e. a Division determir Administrative' Cod( [15A NCAC 02T .0110] or modification upon 60-day notice from the Division Director, in or conditions of this permit or Administrative Code Title 15A Subchapter misrepresentation or failure to disclose -all relevant facts; to allow authorized Department employees upon presentation of credentials: ttee's premises where a system is located or where any records are required any permit required documents and records; initoring equipment or method as required in this permit; or to pay the annual fee for administering and compliance monitoring; or (tion that the conditions of this permit are in conflict with North Carolina or General Statutes. WQ0018708 Version 2.2 Shell Version 200201 Page 9 of 11 �w `1- Permit No. WQ0018708 Redbird Land Company, Baytree Lakes WWTP ENGINEERING CERTIFICATION ❑ Partial ❑ Final Wastewater Irrigation System April 2, 2020 Bladen County I, 1 , as a duly licensed North Carolina Professional Engineer, having ❑ periodically / ❑ _fully observed the construction of the permitted facilities, do hereby state to the best of my abilities that the facility was constructed in compliance with G.S. 143-215.1, Administrative Code Title 15A Subchapter 02T, this permit, and the. Division -approved plans and specifications. - , Documentation of any variation to this permit, and the Division -approved plans and specifications, is in the attached as -built drawings. Description of variations: I 1 Professional Engineer-''s Naive Firm. No. Firm 1�1ame°r laL Addresses . Cit3'. �' "° 77 State ZipCode .. Telephone .Email N5;!i Seal, Signature, and Date w THE COMPLETED EP ' DOCUMENTA' NORTH CARI 1617 MAIL SER RALEIGH, NORTH CP INEERING CERTIFICATION, INCLUDING ALL SUPPORTING DN, SHALL BE SENT TO THE FOLLOWING ADDRESS: MINA DEPARTMENT OF ENVIRONMENTAL QUALITY DIVISION OF WATER RESOURCES NON -DISCHARGE BRANCH Service By Courier/Special Delivery CE CENTER 512 N. SALISBURY ST. OLINA 27699-1617 RALEIGH, NORTH CAROLINA 27604 WQ0018708 Version 2.2 Shell Version 200201 Page 11 of 11 3 ' THIS PAGE BLANK f t ATTACHMENT A — LIMITATIONS AND MONITORING REQUIREMENTS PPI 001— WWTP Effluent Permit Number: WQ0018708 Version: 2.2 EFFLUENT CHARACTERISTICS EFFLUENT LIMITS MONITORING REQUIREMENTS PCS parameter Description p Units of Measure Monthly Average Monthly Geometric Mean DailMinimum y Maximum DailMaximum Daily Measurement Frequency Sample Type 00310 BOD, 5-Day (20 °C) mg/L Monthly Grab 00940 Chloride (as CI) mg/L-- 3 x-Year Grab 50060 Chlorine, Total Residual mg/L Per Event2 Grab 31616 Coliform, Fecal MF, M-FC Broth, 44.5 °C #/100 mL Monthly Grab 50050 Flow, in Conduit or thru Treatment Plant GPD 20,000 / 30,000 3 Continuous Recorder 00610 Nitrogen, Ammonia Total (as N) mg/L Monthly Grab 00625 Nitrogen, Kjeldahl, Total (as N) mg/L Monthly Grab 00620 Nitrogen, Nitrate Total (as N) mg/L Monthly Grab 00600 Nitrogen, Total (as N) mg/L Monthly - Grab 00400 pH su. Per Event 2 Grab 00665 Phosphorus, Total (as P) mg/L Monthly Grab 70300 Solids, Total Dissolved —180 °C mg/L 3 x Year Grab 00530 Solids, Total Suspended mg/L Monthly Grab 1. 3 x Year sampling shall be conducted in March, July, and November 2. Per Event sampling shall be conducted per irrigation event, but shall not exceed 5 x Week. 3. Flow shall be increased to 30,000 GPD when an Engineer's Certification for the permitted 10,000 GPD modification is received, and effluent limits for BOD, Fecal Coliform, Ammonia, and Total Suspended Solids pursuant to 15A NCAC 02T .0505(b)(1) shall be implemented. r WQ0018708 Version 2.2 Attachment A Page 1 of 1 THIS PAGE BLANK J ATTACHMENT B — APPROVED LAND APPLICATION SITES AND LIMITATIONS Redbird Land Company, LLC—Baytree Lakes WWTP VI 41 Permit Number: WQ0018708 Version: 2.2 IRRIGATION AREA INFORMATION' APPLICATION LIMITATIONS Field Owner County Latitude Longitude Net Acreage Dominant Soil Series Parameter Hourly Rate Yearly Max Units - 1 Redbird Land Company, LLC Bladen 34.690667' -78.423111' 5.08 WgB 01284 —Non-Discharge Application Rate 0.25 105.8 inches Totals' 5.08 - I THIS PAGE BLANK e/ ATTACHMENT C — GROUNDWATER MONITORING AND LIMITATIONS Monitoring Wells: MW-1, MW-2, MW-3, and MW-5 Permit Number:" WQ0018708 Version: 2.2 .GROUNDWATER CHARACTERISTICS GROUNDWATER STANDARDS MONITORING REQUIREMENTS PCS Code Parameter Description Daily Maximum r Frequency Measurement Sample Type Footnotes 00680 Carbon, Tot Organic (TOC) mg/L 3 x Year Grab 1, 6 00940 Chloride (as Cl) 250 mg/L 3 x Year Grab 1 - 31616 -- Coliform; Fecal MF, M-FC Broth, 44.5 °C - #/100 mL 3 x Year Grab- 00610 Nitrogen, Ammonia Total (as N) 1.5 mg/L 3 x Year Grab 1 00620 Nitrogen, Nitrate Total (as N) 10 mg/L 3 x Year Grab 1 00400 pH 6.5-8.5 - su 3 x Year Grab 1,2 _00665 Phosphorus, Total (as P) mg/L 3 x Year Grab 1 70300 Solids, Total Dissolved - 180 °C 500 mg/L 3 x Year Grab 1 82546 Water Level, Distance from measuring point feet 3 x Year Calculated 1, 2, 3 1. 3 x Year monitoring shall be conducted in March, July, and November. 2. The measurement of water levels shall be made prior to purging the wells. The depth to water in each well shall be measured from the surveyed point on the top of the casing. The measurement of pH shall be made after purging and prior to sampling for the remaining parameters. 3. The measuring points (top of well casing) of all monitoring wells shall be surveyed to provide the relative elevation of the measuring point for each monitoring well. The measuring points (top of casing) of all monitoring wells shall be surveyed relative to a common datum. 4. If TOC concentrations greater than 10 mg/L are detected in any downgradient monitoring well, additional sampling and analysis shall be conducted to identify the individual constituents comprising this TOC concentration. If the TOC concentration as measured in the background monitor well exceeds 10 mg/L, this concentration will be taken to represent the naturally occurring TOC concentration. Any exceedances of this naturally occurring TOC concentration in the downgradient wells shall be subject to the additional sampling and analysis as described above. 5. Monitoring wells shall be reported consistent with the nomenclature and location information provided in Figure 1 and this attachment. J WQ0018708 Version 2.2 Attachment C Page 1 of 1 �. 0 155 31-0 620 Feet T. ROY COOPER Governor MICHAEL S. REGAN Secretary S. DANIEL SMITH Director Mr..Jack Carlisle Redbird Land Company L d/b/a Baytree Lakes WW' 8620 River Road Wilmington; North.Caroli Dear Mr. Carlisle: The Division of Water Re; Wastewater Ttcatment Pla wastewater treatment faci l the condition that Baytree gallons per day (GP.D) wai WQ0018708. The treatmei from the collection systetn North Carolina General Stal NCGS 143-215.1, 143-215. waste -disposal system in ex disposal system -cannot adec moratorium-ean be imposed capable of adequately ireath Based upon the facts and d( moratorium_ prohibiting the Baytree Lakes WWTP. Th to be connected to the W W introduction of significant N the statute). - This moratorium will remain increase) -the Baytree Lakes' generated, by the Baytree Lai infiltration (I & I) to comply North Carolina registered enl issued under permit WQ00l i has. demonstrated it can adeq with .the flow limits. in pennil Water Resources -suspending 128412 NORTH.CAROUNA Environmental Quallo ivl:arch.20, 2020 Subject: 1�`otill'cation of Sewer Moratorium. Baytree Lakes WWTP .Permit WQ0018708 Bladen County . arces (hereby-knbwn as the Division) iias determined tliat the _Baytree Lakes (WWTP) is.unable to adequately collect and treat wastewater tributary to its based on flows it receives on a daily basis. This determination is. based on ekes W WTP is unable tb.comply with. the current operation. of a 20,000 water treatment and irrigation facility as set forth iri Permit Number system can no longer. Treat and assiinilate the wastewaterahat.is received ,hich contributes to the noncompliance of the Non -Discharge permit. Ite § 145-215.67(a): states, in -part, that no person subject to the provision of 08, or 143-2:14.109 shall cause or allow the discharge of ariy wastes to_a ess of the capacity of.tlie disposal system or of any wastes.which the waste lately treat.. Should these terms be violated, NCGS 1437215.67 states a `on the -addition of -waste to a treatment works" if.thetreatment works is not additional waste: ,rminatioli noted above, the Baytree'Lakes WWTP is hereby placed on a itroduction of any additional waste tothe collection system tributary. to the is to be interpreted as to prohibit the:issuance. of permits.for new sewer lines_ P, any new connections to the.existing collection: systeiii, and/or the IUMCS of new wastewater flow via existing taps (subject to the provisions of in effect ilntil Redbird Land Company.= has upgraded:(design Clow VWTP sufficiently to handle and treat the volume of incoming wastewater es development or upgrade&the collection system to minimize inflow and. with the flow.limits of the permit. The :upgeades will need -to be certified by.a. ineer staffing that all upgrades are constructed consistent with modifications 708.7he.moratorium will be rescinded when -Redbird Land Company'LLC lately control wastewater flowing to the Baytree Lakes WWTP consistent WQ0018708 and has obtained written notification from the Division of the moratorium. North Carolina Department of Environmental Quality 1 Division of water Resources . rayetteville. Regional Office 1225 Green Street Suite 7141 rayettevllle, North Carolina 28301 910.433.3300 As required:by NCGS 143-215.67(d), Redbird Land Company LLCshall give public notice that a moratorium .will be. placed sIo that no additional flow can be added to the Baytree-Lakes W WTP within 15 days of the receipt of this letter. Redbird Land Company LLC-shall give public notice of the moratorium Z. by -public of the notice done -tithe in a newspaper having -general circulation. in the county in:whicli the treatment works are located in, i:e. Bladen County. The notice shall be as provided in the attached, sample public notice. . -Redbird Land Compaiiy LLC shall provide an.affidavit of publication and a copy of the public notice to.. the Division within 15 days of the publication of#Iie.Public Notice: . Redbird Land Company LLC shall contact the Fayetteville Regional Office within days of .receipt .of this letter to schedule a site meeting so a site survey can be performed to determine the number of existing residences currently discharging to the-Baytree Lakes .W WTP and .to identify. -the number -of residences currently. under construction prior to the 15 April 2020 moratorium deadline. Placement -of the public notice in no way absolves Redbird'Land Company LLC.from past or present violations ofNorth Carolina General Statutes. Failure to.place the public notice may subject Redbird Land.Company LLC to additional enforcement action by this. office. lf.the public notice is not published Within 15:"days of receipt, then the Division of Water Resources.will place said public notice of the moratorium by publication of the notice one time in a newspaper having general circulation in the county in which the treatment worl�s are located in,.i.e. Bladen County Correspondence pertaining to this moratorium should be sent.to the Division: at the address listed at.the -bottom of this letter. if you have any questions about this letter, please contact :Trent Allen at 910433- ' 3336 or.via.email at-trent.alllenG7inedefir.gov. .Sincerely; .0ocuSIgned by:- 5789C203DD5C428..- Trent Allen, Regional Supervisor Division of.Water Resources --Water Quality Programs Attachment cc:.S. Daniel. Smith,. Director— Division of Water Resources. Nathaniel Thornburg, Branch Chief —Non Discharge; Permitting. S..Jay Zimmerman, Section-Cliief.- Regional.Offce Operations . Central Files — WQ0018708 i. North Carolina Department orGnvironmental Quality I Division or Water Resources Fayetteville Regional -Office 1225 Green, Stred, suite 714 I Fayetteville, North Carolina 28301 910 — 433-3300 I St • ` - PUBLIC NOTICE SEWER'MORATORIUM': Baytree Lalies Vf�astewater .Treatrrient Plant ` WQ001870$ Baytree Wastewater Treatment'Plant in Bladen County, cannot-accept:the discharge of additional.waste to- . the Baytree Wastewater Treatment effective 15.Apri12020-due to non -compliant wastewater flows . exceeding the current perm t limit of 20,000 gallons per day (GPD) dire to the.number of homes currently constructed in the .Baytree Lakes development and inadequate maintenance of the existing wastewater collection system. Therefore, Baytree Lakes'.Wastewater Treatment. Plant. is hereby. placed on a sewer moratoHdin at its wastewatelr-treatment.plant effective_ l5-April 2020. On.the basis of thorough staff review and.application of Article 21 of:Chapter 143, General Statutes of North Carolina, Public Law 92-500 and other lawful standards and:regulations,.the North Carolina Environmental Management Commission has deterinined_-that the Baytree Lakes. Wastewater Treatment Plant is unable to adequately collect and treat waste tributary to its wastewater treatment facility. _ North'Carolina General Statute 143-215.67(4) directs that no person subject to the provision ofNCGS 1:43`-215,1_a 143-215.108 or 143-214.109 shall cailse or allow the discharge. of any Wastes to a waste= disposal -system in -excess o� the. capacity. of the. disposal system or -of any wastes which the waste=disposal . system cannot- adequately treat. The moratorium on additional sewer connections will:remain in effect until .the,Baytree Wastewater Treatment Plant has rectified the current -noncompliant condition of the facility and has obtained permission from the North Carolina_Environinental Management Commission_ -Suspending the moratorium. Permits -and other- information may be inspected during normal .office hours at the Division of Water Resources, Fayetteville Regional Office at 225 Green Street -'Suite 714, Fayetteville, North .Carol ina . 28301, telephone (91.0) 433�3300..Copies of information on file are.made available for review and reproduction' or scanning. Payment of the�costs'of reproduction are:at.the time of reproduction; invoices will not.be mailed: Questions regarding the status of the sewer moratorium should' be directed to Mr. Jack.Carlisle, Baytree -Lakes Wastewater`Treatment Plant at 919-818-7078: NorthCarolinaDepartment of Environntentul.Quality i Division of Watcr Resources . .'ayetleville Regional Office 1225 Grccn Strcct, SuR6 714 iTayettevillc. North Carolina 25301 910 = 433-3300 SECTION 3. - Purpose of Company - Unless otherwise limited by the Company's Articles, the,business and purposes of ;the: Company shall be to engage•m any lawful business and to engage m any and all business activities , that the. Members owning a majority of Percentage Interests may from time to time deem. to be. - in the .best interests of the Company, including without limitation the acquisition;, ownership and management or real estate, securities or any other'property: Subjeetto the terms:of this :Agreement; the Company shall have all powers of the limited liability company; including without ]imitation, those set,forth in. Section 57C-2-02, of the.North Carolina General Statutes. . :SECTION 4. -Term The term of the Company commenced upon the filing of the duly executed Articles of Organization in the office of the Secretary of State of North. Carolina and, shall continue until the Companyis_liquidated and dissolved. pursuant to the provisions of Section 18,hereof. _ SECTION 5. Definition For purposes of this Agreement each of the following to ms- when used with an. initial capital. letter, shall Have the meaning hereinaf e provided: 51 "Agreement" means this Operating Agreement:of Redbird.Land Company, LLC. s. 5 2 "Capital Account" means the account maintained for each Member in accordance with Section 7.3 of ibis Agreement 5.3 "Code" means the Internal Revenue.Code.of .1.9$6;.as amended from time to time.. 5A. Defaulting Event" shall mean (i) a general assignment by a Member for the -benefit of creditors;' (ii) the appointment of a receiver, trustee, or custodian: for all or any substantial part of "the property. and assets of a Member; (iii) the. entry,of an order: for relief under Federal b tc :Maws as ;amended from time to time, -a or any other judgment _ ankrup y , i gainst a Member or eniered"agam a a Member by any court ofcompetentjurisdiction, which order or decree" continues unstayed and in effect for: a period.of sixty (6U) consecutive days; in any involuntary proceeding against a Member under:the.present or future Federal bankruptcy laws or. under any other appHc:ablebankraptcy, insolvency; or other laws respecting debtor's rights; and (iv) -the commencement by a Member'of any voluntary:pioceeding under: present' or future Federal :bankruptcy laws or under any other:applicable bankruptcy; insolvency, `or other laws respecting ;debtor's rights. S.S. "Disabling -Event" skull' mean; in the case of a Member who is: an individual, a determination by a court of competent jurisdiction that the affected Member is legally incompetent. 5.6. er',' shall mean D. St hen Jones Jr. 'and. Jack J: Carlisle or: an successor Manager or Managers under the terms. of this Agreement. . .. . .... `. 2 69124305 er's Ca ital Account there shall be dsliited tlie: ainount.of (b) . , To each Memb p . cash and the fair market value of any properly.distributed to.such Member (net of liabilities secured. by such distributed property that, the Member is considered' to assume or take subject to under Code 'section 752), and -such Member's distributive share of Company losses and deductions. f In the .event any interest in t]ie Company is tramfen�ed in-accordance-with:the.terms ofthis - Agreement, the transferee shall succeed to the .Capital:Account:of-the transferor to the extent=it .relates to the.transferred. interest. The Members -shall have the. authority to increase or decrease the, Capital Accounts of the Members to reflect a revaluation of.Company property, and to take any other actions. recommended by counsel to the Company to maintain Capital -Accounts in accordance with sections 704(b) and 704(c) of the Code and. Regulations promulgated thereunder. There shall be no credits or debits to a.Membees Capital Account that would change the I Percentage In of thai Member as set forth in Section 6 above -without the. approval of all Members. 7.4 - -interest on an Return. of Capital. No Member shall be entitled to any interest on such Member's Capital Account or on such Member's contributions to the capital:of the. Company, .:and, except as otherwise provided in Sections .16 and -17 ofthis Agreement, no Member shall: the right to demand'or to receive the return of all or any part of such Member's Capital Account or of such Member's contributions'to the capital of the Company.- Loans to the Company.. The Company is.. ereby'authorized to borrow funds=from one or more Members or affiliates) of one or. more.Members. If the Company borrows funds, each Member shall have the opportunity to loan its pro rata. share to the Company based upon`its - pro. rata. share of percentage interests. Such loans. shall be at the interest rate of 12% per annum , ff a member chooses not to paificipate in the loan, the other Members may make the remainder'of the loan. Except as otherwise provided herein, the amount of a loan, if any., made to the Company by a Member shall not be considered an increase in such Member's capital contribution or otherwise a . contribution to the Company, and the making of such loan shall• not entitle'such Member to an . -increased- share of the profits, losses,'or distributions to be made pursuant to the provisions of this . Agreement nor shall it change the Percentage Interest of a Member without the consent of all. . Members: SECTIONS. Allocation of Profits; Losses, and Tar Items . 81' Allocation in General. The profits, losses, and. distributive shares of tax items . shall -be -allocated to the Members pro rata based won their respective Percentage. Interests. during ' the period over which such profits, or losses; and tax items wereaccrued. The Members shall have authority to make any special allocations recommended by tax _counsel to• the' Company as necessary or appropriate for compliance.with the provision of Subchapter K of the Code, including ; without limitation sections 704(b) .and_704(c) thereof; and Regulations _promulgated thereunder. .8.2 Special Rule Regarding Members' .Capital Accounts.- No Member shall be entitled to any allocation lof Company losses -if such allocation' would result in the Member having a negative Capital Account balance (after increasing such Capital; Account by any amount which 4 .. 69124305 the Member. is obligated to 3 Regulations § 1.704-2, ,and d Treasury Regulations. § 1.70, Account balance .(after adju allocatedto the Members wi as adjusted; have been redm 8.3 Qualified In adjustment; allocation br di` § 1.704-1 (b)(2)(#)(d)(4)-(6) and name= to eliminate am3 described in Section 82 abc "qualified income offset" as Regulation being hereby inc 8.4:: _Minimum G minimum gain (as such term each Member shall be'alloci taxable year; an amount equ Company minimum gain all liability, or (ii) the -negative described in Section 8.2 abo defined in TreasuryRegulati SECTION 9.- Distribution 9.1 Distribution distributed:to the Members Interests in accordance with with the consent of Member ` the Members annually at lea :. taxes on.their shares of Con accountant, who willbe mul . period, the excess, if any, of other than from- Company to Company from previously e: Company for such period, (n amortization of the principal Member), (iii) capital expen expendituresas determined i referred to in (b)(i), (ii) and capital contributions, loans o other funds deemed available Members.-: , .. .... 9.2. Distribution otherwise,. shallbe made on 69124305 .store or is deemed to. be obligated to restore pursuant to.Treasury: / .. ,creasing'such Capital Account balance by the items set forth in 4(b)(2)(H)(d)(4)�(6)) while -any othefinember has a positive Capital meat for :such items): In such event, Company losses shall be a positive Capital Accounts, as adjusted, until such Capital Accounts, d to zero. ome Offset. Anp-Member.who unexpectedly receives an. .. . ribution as described -in. Treasury Regulations hall. be allocated items' of Company income and gain in an amount deficit in such Member Capital.Account,(after adjustment as ,e) as quickly as possible. This provision is intended to:be a 3efined in. Treasury Regulations § 1.704-16)(2)(ij(d), such. irporated by reference. yin Chargebaek. 'If there is a net decrease in the Company's �s defined in Treasury Regulations § 1.704-2) during any taxable year, ad, before. any other allocation is made of Company items' or such l to -the greater of (i) such Membees share of the net decrease in cable to.the disposition of Companyproperty subject to nonrecourse. ialance in such. Member Capital Account (after adjustment as e): This provision is intended to be a"minimum gain chargeback" as_ )n § 1.704--2,. such Regulation being hereby incorporated by reference. to Members . of Net Cash Flow. The Net Cash Flow of the Company may be Zth the consent of Members owning a majority of the Percentage heir Percentage Interests; provided, however, that the Company may, . owning. a.majority of the Percentage Interests, distribute amounts to. t sufficient for the Membersto pay their. federal and state income zany income, :as .determine din -good: faith by the ;Company's sally agreeable to the Members, ."Net Cash Flow" means, forany a) the sum of (i) all. gross receipts from any source for such period, ns and capital contributions; and (ii) any fimdsreleased by the ablished reserves, aess .(b) the sum of .(i). allcash expenses paid by the all amounts paid by Company in such period on account'ofthe )f any debts or liabilities of the Company .(including loans from any itures of the Company, and:(iv):a reasonable reserve for future L good faith by the Manager; rout however, that.the amounts u) above will be taken into account onlyto the extentnot imded by. paid out ofpreviously established reserves. Such term also includes all - for distribution and designated in good.faith as Net Cash Flow by the in Kind,. Distributions in kind.of property, in liquidation or 7 with the consent of all of the -Members and:only at a_value established by the Membea established value and the t charged, as is appropriate, Interests k the Company. charged-Wthe Capital Acc Interests of the respective SECTION N. , Ling 104 Company . allocation of the Company Company,.the Members sl Company for the payment provided in Section 7.2 ab parties for any delfts ,or lid .contribution's to thei capita Company: 10.2 Negative C this. Agreement, the Memt any deficit or, negative bat Accounts as a result of the net losses and for the dish SECTION 11. Ma 11.1 . Powers an a °`manager -managed" lin responsible- for the.day-to• devote such time and effo: success..: Subject to; the p manage, administer, ;open options related to, and oth state.on behalf of the Con .. .1112. Limitatior Section 1Ll above, the cc Interests. shall be required (a) ne@ obligations for an Company -which o the aggregate; (b). bor Company's busin purposes in an age : 691243054 . s. Prior .to_any such distribution in kind, the difference between such - sok value.of any such property'to.be:distributed.shall be credited or - :o:the Members' Capital Accounts in proportion to their Percentage: . ... Jpon the distribution of such property; such agreed upon value shall'be )unts of Members receiving such distribution and, the Percentage Members shall'be adjusted accordingly. ited Liability of Members ,esses and Debts. -Notwithstanding the provisions hereof for the . s net losses and for the distribution of cash to -the Members by the all not. be req*ed:to: make any contributions to the capital of the )f any such losses or -for any other purposes except as specifically..' ,ve nor shall any Member be responsible or obligated to any third nlities of the Company, in excess of the sum of his unrecovered : : of the.Comp Ay and his, share of any undistributed profits of the _ apical Accounts. Except as'may be otherwise specifically set forth in -rs shall nofbe required to payto the:Company: or to any otherMember nce which may exist from time to time in their respective Capital: provisions hereof for the allocation to the Members of the Company's bution of cash or other, property. to the Members by the Company. iagement Hof Company. l Duiies of Managers: The Members agree that.the Company shall be ted liability company under the Act; and that the Managers shall be Jay management of the Company's business and affairs and shall. - t to.the Company as shall reasonably. be required for its. welfare'.and !ovisions of Section-1 l.2 below, the Managers are authorized to :e; lease, sell, exchange, .pledge, encumber, transfer, purchase; grant a wise deal with the Company's assets in North Carolina or any other . Pant• s on Authority. of:Manager. Notwithstanding the provisions of; anent of -'all of the Members owning, a majority of the Percentage to do any of the following: )tiate,. enter_ into; and .execute .leases anal- contracts; :-and to incur i on behalf of the. Company in connection with the business of the' iligate the: Company to, annual. expenditures in excess of $25,000:00 in ow money -for and on behalf of the . Company in . connection with the ss and to pledge the credit -and property of the Company for such . -egate amount exceeding $50,000.00; 0 (cj... make capital expenditures exceeding $50,000.00 in any one year; (d) admit any person or entity as a Member; . (e). .: 'sell, tt�ansfer or otherwise dispose. of any individual asset of the Company in an amount exceeding $Sb,000;00 per any -such asset. 'Prices' for lot sales shall.be set at.'a' monthly meeting by those, Members owning a majority of the Percentage Interests; A lot is: considered an individual asset; {fl merge the Company into or with another limited liability company or other (g) liquidate, dissolve or wind up the. Company or -any action -by the -Company . under=any,baakruptcy or insolvency statute or any other statute relating to any of the foregoing, . (h) take any action in contravention of this Agreement;. or (1) amen I this Agreement i 11.3 -Compensation for Services. The Company may ay to the Managers. compensation for any services. that the Managers:render tolhe Company, in:an amount commensurate with the value of the services rendered as determined by the Members, owning a majority of the Percentage Interests. Notwithstanding the"above; Jones, in consideration of his performance of day: to day operations ;of the. Company, and so long as he performs. day to day operations;shall receive compensation as follows: each year, the Company shall determine, pursuant to Section 14.3 below, the net profit of the Company for that year; if any, and shall pay Jones ten percent (10%) of the net profit as compensation for.his. day to day operations of the Company.: -Such compensation shall bean expense of the Company. Once such compensation is. paid to Jones, the Company small then completeahe accounting under Section 14.3.: " 11.4 Intentionally left blank 11.5; Liability of Managers. So long as the Managers shall actin good -faith with respect.to the conduct: of the business and •affairs of the 'Com-pany; the Mataager shall:not be liable or -accountable to the Company or to any of the Members, in damages or otherwise, .for any error of judgment, for any mistake of ifact or of law,. or for' any other act of thing which a Manager may do : or'refrain from doing in connection with the business: and affairs of the Company except in the case of willful. misconduct or gross negligence or breach of fiduciary duty. 11.0 -Indemnity. The Company does hereby indemnify; and agree to hold the Managers wholly harmless, from and against any loss, -expense, or damage suffered by.the Managers by reason of anything theymay do or refrain from doing hereafter for and on behalf, of fire Company and in furtherance of its interests; provided, however, that the Company shall not be required to indemnifya Manager for any loss, expense, or damage which it might. suffer -as a result of a Manager's willful misconduct or-groSs:negligance or breach of fiduciary duty. OR124305 . 11.7 Independent Investments. No Member may engage independently or with others in -other business ventures Iin competition with the -Company and. its assets and properties within twenty-five .(25) miles of any property held by the Company as. of September 30, 2015. SECTION 12. Investment Representations -of the Members - 12.1 Investment) Intent. Each Member does hereby represent and waitant to. the. Company that he.has acquired his interest in.the Company for investment: solely for lus. own account with .the intention of holding such interest for. investment, without any intention of participating-directly:.m indirectly in any distribution of any portion of such interest; and without the financial participation of any other person: in acquiring: his interest in the Company. 12:2 Unregiste I Company Interest.. Each' Member does hereby acknowledge that he is aware that his'. stm the Company has not beea-registered (i) under the Securities Act of I933, as amended (the "Federal Ace), ffl under the Uniform Securities 'Act. of the -State of North Carolina, as amended (the `� Uniform Securities Act'"), in reliance upon the exemption contained in Section,78A-17(9) of the Uniform Secudties.Act, or (iii) under any other, securities laws. . Each Member father understands and acknowledges that his representations and-wamnties . contained in this Section 12 are being relied upon by. the Company :as the basis for the exemption of the Members' interests * the. Company from'the registration requirements of the Federal Act and from the registration requirements of the Uniform. Securities Act and all other State securities-. laws. Each Member further acknowledges that the -Company will not and has no obligation to recognize any sale, transfers or assignment of all' or anypart`of his "interest is the -Company to any-. person unless and until the provisions.of Section 17 hereof have been fall satisfied: Y .12.3 Nature of Investment.* Each of the Members does hereby acknowledge that prior -to his execution of this Agreement, he received a copy of this Agreement and that he has examined_. . this Agreement or caused this Agreement to be examined by his representative or attorney._ Each of the Members does hereby further. acknowledge that. he or his representative or. attorney is' famiiliar with this Agreement and with the Company's lans to engage in the business -of real. estate . investment and development and asset:management, Each Member acknowledges that he or.his representative or attorney has made such inquiries and requested, received, and reviewed any additional documents'necessary for him to make an informed investment decision and.that he does not desire any finther'information or data relating -to the Company.. 12.4 Legend on Agreement and Certificate; Each of the -Members does hereby acknowledge and:agree that a legend reflecting the restrictions. imposed upon the transfer of his interest in the Company under Sections .16 and 17 hereot under the Federal. Act, under the: Uniform- Securities. Act, and under any applicable State. seeurities:laws maybe placed on any certificate evidencing owneiship of any interest in the Company or under.t'his Agreement. - SECTION 13. Zan�ng The funds of flit Co I pany shall be kept in one or more separate bank accounts in the name of the Company in such banks or other depositories as maybe designated or shall otherwise be -invested in the name of the Company in such, manner.and upon such terms mid conditions as may by the be designated. All.withdrawals from. any such bank accounts or investments established , i r . Company hereunder shall be made on such signature or signatures. as maybe authorized from.time to time by both Managers; provided that both D: Stephen Jones, Jr.. and Jack J: Carlisle will be signatories -on-all bank accounts of the Company-, - SECTION 14. Acco j ting 14.1; Fiscal Year. The'fiseal year of the -Company. shallend on the last day of the calendar year. Method of Aecounting:.The; Company's books of account shall be maintained, , and its .income, gains, losses, and deductions shall be determined and accounted for, in accordance with such method of accounting as may be adopted for the Company.for. Federal income tax" . .. .... .. purposes, and for purposes of this Agreement, the Company shall account for each and every, item of its income, gain, loss and deduction in.the same manner as.it.accounts for each such item for income tax purposes; . 143. Financial andOperatingStatements and Tax Returns. Withinninety (90) days from the close of each fiscal year of the: Company, the Company shall deliver to -each of the Members unaudited financial `statements which _set forth�the results of the operations of the..: Company for such year, the unpaid balance due on all obligations of the .Company; and each . ` _ . Member's share of the net profit or net loss of the`Companyfor such year.. In addition,within i ninety.(90) days from -the close of each fiscal .y' of the:Company,the Company shall -deliver to. each Member a- statement setting forth -such Member's -allocable share of the tax items. of the Company for such year, and all such other information as may be required to enable each Member to prepare his Federal, State, and local -income tax returns in accordance with all then applicable Taws, rules, and regulations. The Company also. shall cause to be prepared and filed all Federal; - Stite; and -local income-tax retums required of the:Company for each fiscal year. -14.4 Location of and Access io Coampany Records. -The following records of the`-. Company shall'be kept at its registered office where_ they shallbe subj ect to.inspection and copying at the reasonable request and at the expense of any Member during ordinary business hours:: ; (a) a current list of the full name and last known business, residence or mailing address -of each Member, separately identifying the Members (in alphabetical order) .. ... (b) a copy of the Articles of Organization of the Company and all certificates of . - amendment thereto; (c) .. copies of the'Company's Federal,State, and local income tax returns and - annual reports of the Company filed with the Secretary. of State of North Carolina .in accordance with §57C-2-23- of the Act forlthe.three (3). most recent years; and (d) . copies of this Agreement, as. amended, and` of any, f nancial statements of _ the Company for the three (3)rnost-recent years. :. 14.5 : Tax Elections. With the consent and approval of the. Members owning. a majority of the Percentage Interests, the Company may make any and all, elections:applieable to:a partnership for Federal' and State income tax purposes deemed tube in the best interest of the 9 8124305 a Members and the Company. Such elections, include, but are not limited to; an election under section 754 of the Code with respect to distributions of a.partnership interest, described in section 734 of :the Code and with respect to `transfers of partnership properly described in section 743 of the Code: SECTION 15. Admission of Members - . 15.1. Admission by Consent- of Members. Except as, otherwise specifically provided in this Agreement, no person, firm, corporation, or other entity shall be admitted to the Company as a Member'without the consent of all of the Members. 15.2 Substitn I Member.,: In, the, event a Member transfers allor. any part of his or her interest.in the Company in compliance with the provisions.of Section 17 hereof, the transferee of such Member shall not have the right to become a"substitute Member of the Company -unless. the transferring Member has given his or her transferee suchright:and unless: ... .. .... .. .... .. ... .. the transf ' Member. d his h eree execute and deli such (a) e � emng em er an or her transf ec deliver h instruments gas the Members owning a majority of the Percentage Interests deem necessary or desirable to effect such substitution; (b) such transfereeaccepts and agrees in writing to be bound by all -of theterms and provisions of this Agreement; and .. ... . {c)-: such.transferee pays all reasonable expenses connected with such substitution. Sale or Transfer of;Interest' Sale of Interest -of a.Memb�er. A Member may not sell' or transfer -.all or any part of his Company. interest except onthe following.conditions: -. (a) : The Company interest of the selling Member shall first be offered in writing - (which writing includes the identity of the proposed purchaser) to the. other Members to purchase pro rats based on their Percentage Interests or otherwise.by agreement of such other Members, ,at the price and on the terms at vrhicli it is `proposed to be sold and the other members shall have a period of:thi ty (30) days to either reject the offer or accept the offer with sespectto the whole Company interest offered. ` If any. Member does not 'eleet to purchase his pro rats portion of the offered interest, the Members electing to purchase shall acquire such portion pro rasa based on. their Profit-sharing Percentages. If Ie Com ,an interest offered b the selling Member is not uchased b (b i P Y Y. g P. Y -.the other Members, then the selling.Member may sell. such interest to a.third person or third persons: during the three (3) month period following the. expiration of the thirty (30) day period ' referred to in subsection (a) above, but at a price andgn terns no :more favorabk than the price and terms offered to the other Members. After the:expiration of the three (3) month period, no. portion .... of the Company interest ofIthe selling Member.shall be sold without first being reoffered in . accordance withaubsection (a) above. 10 0124305 (d) - Notwithstanding the foregoing, a Member' may; upon notice to .the other Members, freely . transfer his, Company.interest; or any portion thereof- to a.member of his immediately family.. By ".immediate family" it is meant such Member's:spouse, children, grandchildren, parents, or the , trustee of aIrust solelyyfor the benefit of such persons. The transferee of the Company interest"of a Member shall be subject to all the terms, conditions, restrictions, andobligations of this Agreemerr 'including the provisions of this Section. (d) Any assignment (including; without limitation, any transfer or sale of a Member's interest permissible under Section 16.1(c)) shall be effective to give the assignee all rights .of a Member. Death. Upon the death of a Member, its interest in the Company shall pass pursuant to the terms- of suchMember's will or pursuant to the laws of intestacy if no will exists. Such.person(s) inheriting' a Member's'interest shall have all rights of a Member. SECTION 16.. Withdrawal, Defaulting Events.and Disabling Events 16.1 Withdrawal. (a) Any Member wishing to: withdiaw shall sell his interest in the Company to the Company at a pride+mutu i lly agreed.upon.or to a purchaser pursuant to the terns of Section 16. 16.2. Purchase of Defaulting Member's Interest. . (a) Upon the occurrence of a Defaulting Event with respect to a Member. (the "Defaulting Member"), the befaulting Member shall cease to be a Member andthe Company shall have the right,: exercisable by giving written notice to the Defaulting Member within sixty (60) days after the date of the Company's actual knowledge of the Defaulting Event (for purpose of this Section 172, the date such notice is given by the Company is hereinafter referred to as the "Notice Date"), to purchase the Defaulting Member's interest in -the Company for a purchase price equal to the fair market value of such interest as determined by an appraiser as set forth in subsection. 17.2(li), taking: into account the business, assets and liabilities of the Company and: the degree of. marketability of such interest) (b) The fair market value of the Defaulting Member's interest shall. be de termmed as expeditiously as possible by adisinterested appraiser mutuallyselected bythe' Defaulting.Member and the Company (the Company's. $ale - on.being.made'bythe remaining Members exclusive of the Defaulting.Member's interest). If the Defaulting Member and the. Companyare unable to, agreeJupon a disinterested -appraiser, then.the Defaulting Member and the Company shall each select a disinterested appraiser and if the.disinterested appraisers selected are unable to agree as to.the fair market value.of.the Defaulting Member's interest, then the two disinterested-appraisers;,shall select a third disinterested appraiser who shall determine the fair market value. -The deteiminat on of the fair market value of the DefaultingMember's interest by the appraiser or appraisers shall be conclusive and,binding on aIi:parties.:All. costs of an appraiser mutpally. selected. by the Defaulting Member. and,the Company orby.the two disinterested.: . appraisers shall be shared equally by the Defaulting Member.and the,Company. A1lcosts of an individually selected appraiser shall be borne by the party selecting each. appraiser. . 69124305 .:. r (0 The l first- of which shallbe made one of which shallbe made finther, however, -that noty - Defaulting Member in thm penalty alk of such:installme the Company elects -to make installments as provided he theDefaulting Member a& interest on the undistribute entitled hereunder. at,an ant 1274(d) of the Code,' as det which additional amounts, l the annual installments of t distribution to aDefaulting termination: of the Defaultii exchange for the Defaultinj the receipt of such distribui -Membershall execute all d for.the Company) to :evidei transfer of his interest in th 16.3- Disabled N Upo "Disabled Membee'); the I appointed. -to handle liis/hei disabled member. '. SECTION 17. ! Diss .17.1 Dissolving upon the happening of any (a) . ' The (b)'By E .11.2 . Method of Section 18.1 above that re the Company is continued be liquidated and' the Com dissolution, any of the Cob Act; any and all proceeds i sold, shall be applied and ..priority iurchase,price shall be paid irithree {3) equal annualinstallments; the within thirty (30) days of the determination of fair market value and. on the same -date iii each of the.two :(2) yew. thereafter; provided, thstanding an election. by the Company.to.make the distributionto the (3) equal annual.installments; the Company may accelerate without. - nts at anytime or any part of such installment at any time.. In the event distributions to the Defaulting. Member in three (3) equal. annual -ein, the Company, in addition_ to such annual installments, shall -pay . itional amounts computed -as if the Defaulting Member is entitled to 1, amount. of the total distribution to which the Defaulting Member is ual.rate equal to.the.applicable Federal'rate in effect undei section-. ermined on the thirtieth (30th) day after the determination of value, computed like interest, shall be due and payable on the same dates as ie distribution payable to the Defaulting Member he. , The Memberprovided for herein shall.be in complete liquidation"and . g Member's interest in the Company aad shall be treated as payment in - Member's interest in -the Company's property. Simultaneously with ion.or the first installment thereof as -the case:may be, the Defaulting 3cuments deemed necessary or appropriate, in the opinion of counsel - ce the Defaulting Member's withdrawal from the Company and the Company to the.Company. ember's Interest. 1 the occurrence of a Disabling. Event with respect to a Member (the )isabled Member shall continue to lie<a Member through the guardian . affairs or the -attorney -in -fact with the.capacity to act on.behalf of such olution, Liquidation, and. Term =nation of Company . Events.' The Company shall be dissolved; liquidated, and terminated . . Hof the following events: consent of all of the Members to dissolve the Company; or. .I try of a, decree of judicial dissolution: Liquidation:. Upon the happening of any of the events specified in �ture the Companyto.be dissolved,. liquidated, and. terminated, unless - .. as provided,in Section 18.1(b) or (c), all of the Company's assets shall 3any. shall -be dissolved. In the course of such liquidation and npany s assets maybe sold, and notwithstanding. the ,provisions of lerived from such: sale together with ail Company assets'whicli arenot tistdbuted in the following.manner and in the following order of 12. (a) To the payment of the debts .and liabilities of the Company; including any . debts or liabilities, other than Capital, Accounts-: owed io the Members; and to the expenses of - liquidation in the order of priority as. provided by law; ,then'to (b) -. The eshablishment of any reserves which the Members owning a majority of the Percentage Interests ".necessary for any contingent or unforeseen liabilities or obligations of the Company; rovid however, thai any. such reserves established by -the Members ownin .a - majority of the Percentage Interests shall be -paid over to a bank or: other designated agent.to be, held in escrow for the purpose of paying any such contingent or unforeseen liabilities or obligations and, at the expiration of such period as the Members owning a majority of the Percentage Interests deem advisable, of distributing the. balance of such reserves in the manner hereinafter provided in this Section; then to (c) The pIyment to -each Member of his Capital Account; and then to (d) - - The Members in piopordon to their respective Percentage Interests in the, Company. 17.3 Reasonable Time for Liquidation'.. A reasonable time shall be allowed for the orderly liquidationof the Company's assets pursuant to: Section 18.2 above in order to minimize . the losses normally attendant upon such a liquidation. 17.4 Date of Dissolution. The -Company shall terminate and dissolve when -all of its assets have been -applied andldistributed-in aecoidance.with the provisions.of Section 18.2 above.. The establishment of any reserves in accordane6with the provisions of Section 18.2 above shall not havethe effect of eatendwg the term of the Company,' but any. such reserves shallbe distributed m1he manner provided in.such. Section:upon expiration of the period of such reserve. _ SECTION 18. General Provisions 18.1 Waiver of Right of Partition. ' Each of the Members does hereby agree to and• does hereby waive any.right such Member may otherwise have to. cause any asset of the Company to be partitioned among the Members or to, file any complaint or to institute. any proceeding at law. or in equity seeking to have any such -assets partitioned. 11 i :. 18.2 Notices. Except as otherwise, VpOcally:provided in this Agreement, whenever _ any notice or other communication is required of permitted to be given hereunder, such notice or. other communication shall be in writing and shall be (as elected by the party giving. such notice) (a) delivered in person, or (b) sent by, U.S. registered or. certified mail, return receipt requested; postage prepaid to.the'personito.whom such notice is intended to be.given at such address as. such , person may have previously fimmished i-n writing to the. Company or to such person'.s last known. address:. Notwithstanding the foregoing, notice of meetings of the Members may be sent by regular first-class mail. Any notice or other communicatioh delivered -in person shall 'be deemed - effectively given when -delivered, and any- such notice or other. communications mailed as hereinabove provided shall be deemed effectively given on.the date of receipt. 18.3. Waivers.' No term or condition of this Agreement shall be considered waived by a -Member-unless. such waiver is in writing -and is. signed by such Member.: - 13 69124305-4 -18.4 '. Binding Effect. This. Agreernerit shall inure to the benefit of and shall be binding. upon the"Members, their legal representatives, transferees, heirs, successors, and�assigns. .. .18.5 Duplicate Originals. For the convenience of the. M. bers; any number of , counterparts hereof may be executed, and each such counterpart shall be deemed to be an original instrument: 1 18k. Construction: This Agreement shall be interpreted and construed in accordance with the. laws of the State of North Carolina. -The-titles of the Sections and Subsections herein have been inserted a's a matter of convenience of reference only. and shall not control or affect the meaning.or construction of any. of the terms or provisions herein. 18.7 Gender. Throughout this.Agreement, wherever the context requiresor permits, genders shall be deemed interchangeable, and the single number shall be deemed to include the. .. : plural, and vice versa. 18.8 - - Separability of Provisions.. Each provision of this Agreement shall be considered separable.and (i) if for any reason any provision. or provisions herein are determined to be invalid and; contrary to any existing or future law, .such invalidity shall not impair the operation of or affect those portions of this Agreement which are valid, or (ii} i f for any reason any provision or provisions herein would cause the Menmbers to be bound by. the obligations of the Company under the laws of North Carolina as the same.may now'or hereafter exist, such.provision or provisions shall be deemed void and of no effect.:. .18.9. Arbitration. All disputes arising out of or in connection with this Agreement or any transaction hereunder shall be finally settled under the Commercial Arbitration Rules of the American -Arbitration Association then in effect..The arbitrators' award; shall be final and binding: Judgment upon the award iendered:may be.entered in any. couit.having jurisdiction over the party against which the award is rendered: The Menibers-expressly. consent to the jurisdiction of the federal .and state- courts situated in North Carolina for the purpose of enforcing any arbitration award rendered pursuant toy this Section 19.9. The arbitration shall take place in. Raleigh North Carolina or such other place as the parties may agree.: Each party shall pay. its own fees and costs. .. .[Signatures appear on. the :followingpage.]. 69124305- i -fie E 0 F , STA BS 14-L FS / S tGEV. //'7SAR SER — T Ta) yeTI/ RoZ5 as /. l /o% 01 5%Fi r35 1� Z FS /FS .S E LEA• k� J/� 0 �3. 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