Loading...
HomeMy WebLinkAboutWQCS00230_Owner (Name Change)_202310194 1-4 ONWASA onwasa.com 228 Georgetown Rd Jacksonville, NC 28540 North Carolina Department of Environmental Quality Division of Water Resources Water Quality Permitting Section — PERCS Unit 1617 Mail Service Center Raleigh, North Carolina 27699-1636 Re: Request for Sewer System Permit Ownership Change Webb Creek Collection System, WQCS00230 Onslow County, North Carolina DWR Permitting Staff: RECEIVED OCT 19 2023 NCDEQ/DWR/NPDES October 13, 2023 Please find enclosed a completed Sewer System Permit Name/Ownership Change Form (PNOCF 01-16) and supporting documentation for the above -referenced collection system. It has been confirmed with DWR staff (Andrew Girgis) that the current permit for this collection system expired in 2021 and a renewal application not submitted for consideration. While ONWASA does not have an issue with renewing the existing permit at this time, we would also ask consideration for simply including this collection system within ONWASA's existing Collection System permit (WQCS00249); a copy of the current version of that permit is included with this request. Based on our current schedule to obtain final approvals and secure the necessary funding, we anticipate closing on the sale of the plant and associated collection system on November 9, 2023, and assuming operation immediately. As noted on the form, there will be no change in the waste stream or collection system configuration with this change in ownership. Please feel free to reach out to me directly at (910) 937-7521 or dmohr(aD-onwasa.com if you have any questions or concerns over this request. Sincerely, `/C-14r�� l David M. Mohr, PE Chief Operations Officer Onslow Water and Sewer Authority Cc: Franky J. Howard, Chief Executive Officer Seth Brown, Treatment Facilities Administrator Encl. Signed Systems Purchase Agreement NCPUC Order Approving Transfer Existing Webb Creek Permit (WQCS00230) Existing ONWASA Permit (WQCS00249) State of North Carolina Division of Water Resources Department of Environmental Quality Division of Water Resources SEWER SYSTEM PERMIT OWNERSHIP/NAME CHANGE INSTRUCTIONS FOR FORM: PNOCF 01-16 This form is for ownership changes or name changes of a sewer system permit. Please note that "Permittee" references the existing permit holder, and that "Applicant" references the entity applying for the ownership/name change. Sewer permits start with a WQ or WQCS and contain the terms sewer extension or collection system in the subject field. This form should not be used for permits with NC, NCG, SW or other types of non -sewer permits beginning with WQ. For more information, visit the Division's Water Quality Permitting's tirebsite: A. Sewer System Permit Ownership/Name Change (FORM: PNOCF 01-16) Application (All Applications): ® Submit an original completed and appropriately executed application (PNOCF 01-16). ® The Existing Permittee's Certification shall be signed in accordance with 15A NCAC 02T .0106(b). Per 15A NCAC 02T .0106(c), an alternate person may be designated as the signing official if a delegation letter is provided from a person who meets the criteria in I5A NCAC 02T .0106(b). ® The Applicant's Certification shall be signed in accordance with 15A NCAC 02T .0106(b). Per 15A NCAC 02T .0106(c), an alternate person may be designated as the signing official if a delegation letter is provided from a person who meets the criteria in 15A NCAC 02T .0I06(b). B. Existing Permit (All Applications): ® Submit a copy of the most recently issued permit and certification. C. Property Ownership Documentation (All Applications): The Applicant shall demonstrate they are the owner of all property containing the sewer system facilities: ❑ Legal documentation of ownership (i.e., GIS, deed, article of incorporation, or contract), or ® Written notarized intent to purchase agreement signed by both parties with a plat or survey map, or ❑ Approved board minutes D. Certificate of Public Convenience and Necessity (All Applications where the Applicant is a Privately -Owned Public Utility): ❑ Per 15A NCAC 02T .01 15(a)(I ), provide one copy of the Certificate of Public Convenience and Necessity from the North Carolina Utilities Commission demonstrating the Applicant is authorized to hold the utility franchise for the area to be served by the non -discharge system. E. Operational Agreements (Applications where the Applicant is a Home/Property Owners' Association or Developer of lots to be sold): Home/Property Owners' Associations ❑ Per 15A NCAC 02T .01 15(c), submit an original properly executed Operational Agreement (FORM: HOA). ❑ Per 15A NCAC 02T .01 15(c), submit an original proposed or approved Articles of Incorporation, Declarations and By- laws that contain the language required by the Operational Agreement. Developers of lots to be sold ❑ Per 15A NCAC 02T .0115(b), submit an original of the properly executed Operational Agreement (FORM: DEV). F. Package Submitted in Duplicate ® Submit a copy of all required documents in Instructions A-E as required THE COMPLETED APPLICATION AND SUPPORTING DOCUMENTATION SHALL BE SUBMITTED IN DUPLICATE TO: NCDEQ - DWR Water Quality Permitting Section PERCS Unit By U.S. Postal Service: By Courier/Special Delivery: 1617 MAIL SERVICE CENTER 512 N. SALISBURY ST. RALEIGH, NORTH CAROLINA 27699-1636 SUITE 925 RALEIGH, NORTH CAROLINA 27604 TELEPHONE NUMBER: (919) 807-6300 INSTRUCTIONS FOR APPLICATION PNOCF 0 1- 16 Page I of I DWR Division of Water Resources 1. EXISTING PE'RMITTEE INFORMATION: State of North Carolina Department of Environmental Quality Division of Water Resources SEWER SYSTEM PERMIT OWNERSHIP/NAME CHANGE INSTRUCTIONS FOR FORM: PNOCF 01-16 1. Permittee's name: Pluris Webb Creek, LLC 2. Signature authority's name: Maurice W. Gallarda, PE per 15A NCAC 02T .0106(b) 3. Signature authority's title: Managing Member 4. Permittee's mailing address: 5920 Berkshire Lane, Suite 800 City: Dallas State: TX Zip: 75225- 5. Permittee's contact information: Phone number: 214) 220-3412 Fax Number (_) --_ Email Address: m alma &plurisusa.com If. APPLICANT INFORMATION: 1. Applicant's name: Onslow Water and Sewer Authority (ON WASH) 2. Signature authority's name: David M. Mohr, PE per 15A NCAC 02T .0106(b) 3. Signature authority's title: Chief Operations Officer 4. Applicant's mailing address: 228 Georgetown Road City: Jacksonville State: NC Zip: 28540- 5. Applicant's contact information 6. Representative's name: N/A 7. Representative's title: N/A 8. Representative's contact information 111. PERMIT INFORMATION: Phone number: (910) 937-7521 Fax Number (_) ------- Email Address: dmohrla,onwasa.com Phone number:(--) _-_ Fax Number (_) _-_ Email Address: --- 1. Existing permit number: WOCS00230 and most recent issuance date: May I, 2013 2. Reason for the permit application: Change of Ownership If other, attach detailed explanation 3. Has the facility been constructed? ® Yes or ❑ No 4. Has the facility been certified per 15A NCAC 02T .01 16? ® Yes or ❑ No FORM: PNOCF 0 1- 16 Page 1 of 2 IV. CERTIFICATIONS: Existing Perntittee's Certification per 15A NCAC 02T.0106(b): I, Maurice Gallarda, PE, Managing Member attest that this application (Signature Authority's name & title from Application Item 1.2 & 3) has been reviewed by me and is accurate and complete to the best of my knowledge. i understand that prior to reissuance of the permit into the Applicant's name, 1 will continue to be responsible for compliance with the current permit and any discharge of wastewater from this system to surface waters or the land may result in an enforcement action that may include civil penalties, injunctive relief, and/or criminal prosecution. I will also make no claim against the Division of Water Resources should a condition of the existing permit be violated. I also understand that if all required parts of this application are note completed and that if all required supporting information and attachments are not included, this application will be returned to me as incomplete. NOTE — In accordanci with General Statutes 143-215.6A and 143-215.613, any person who knowingly makes any false statement, representation, or certification in an pligQt'on package shall be guilty of a Class 2 misdemeanor, which may include a fine not to exceed 510,000 as �yel as civ� pe�� i s u $25,000 per violation. Signature: Applicant's Certification per 15A NCAC 02T .0106(b): Date: 1 011,5 I, David M. Mohr, PE, Chief Operations Officer attest that this application (Signature Authority's name & title from Application Item 11.2&3.) has been reviewed by me and is accurate and complete to the best of my knowledge. I understand that after issuance of the permit into the Applicant's name, I will be responsible for compliance with the issued permit and any discharge of wastewater from this non - discharge system to surface waters or the land may result in an enforcement action that may include civil penalties, injunctive relief, and/or criminal prosecution. I will snake no claim against the Division of Water Resources should a condition of this permit be violated. I also understand that if all required parts of this application package are not completed and that if all required supporting information and attachments are not included, this application package will be returned to me as incomplete. NOTE — In accordance with General Statutes 143-215.6A and 143-215.6B, any person who knowingly makes any false statement, representation, or certification in any application package shall be guilty of a Class 2 misdemeanor, which may include a fine not to exceed $10,000 as well as civil penalties Up to 25,000 per violation. Signature: Date: / Ohs 00 Z 3 FORM: PNOCF 01-16 Page 2 of ,,,� Air, rcd North Carolina Department of Environment and Natural Resources Division of Water Quality Beverly Eaves Perdue Charles Wakild, P. E. Dee Freeman Governor . Director Secretary J Kinlaw Jr., Secretary 250 Zackaty Lane Hubert, NC 28539 Subject: Permit No WQS00230' Webb Creek Water and Sewage Inc Webb Creek Collection System 4nslow County Dear J Kinlaw: In accordance with your application received 12/12/2012, and the additional information received on March 13 and 27 and April 11 and 25, 2013, we are forwarding herewith Permit No. WQCS00230, dated May 1, 2013, to the Webb Creek Water and Sewage Inc for the operation and maintenance of the subject wastewater collection system. This permit shall be effective frorti June 1 2013, unti -May 31 2021 and shall be subject to the conditions and limitations specified herein. It is your responsibility to thoroughly review this permit. Please pay particular attention to the monitoring and reporting requirements in this permit and any compliance schedules shown in bold. For purposes of permitting, the collection system is considered to be any existing or newly installed system extension up to the wastewater treatment facility property or point of connection with a separately owned sewer system. The collection system is considered all gravity lines, pump stations, force mains, low pressure sewer systems, STEP systems, vacuum systems, etc. -and associated piping, valves and appurtenances that help to collect, manage and transport wastewater to a wastewater treatment plant under the Permittee's ownership or maintained and operated by the Permittee through a perpetual legal agreement. Satellite systems are systems tributary to the Permittee's collection system but those collection systems are not owned or maintained by the Permittee. The system description provided on Page 1 of this permit is meant to provide a general idea about the size of the system and may not be all inclusive of the collection system at the time of permit issuance or afterward. 1617 Mail Service Center, Raleigh, North Carolina 27699-1617 Location: 512 N. Salisbury St. Ralebh, North Carolina 27604 Phone: 919-607-63001 FAX: 919-807-6492 Internet: www.ncwaterauafilv.ora An Equal Opportunity 1 AffirmaGve Action Employer Nne orthCarolina Natdfl'allff J Kinlaw, Vice President May 1, 2013 Page 2 of 3 A release of wastewater from the wastewater collection system is referred to herein as a Sanitary Sewer Overflow (SSO). The evaluation of enforcement options after an SSO will be determined considering the criteria listed in condition I(2)(a) and I(2)(b) of the permit and all other relevant information available or requested of the Permittee. Compliance with all conditions of the permit as well as all statutes and regulations pertaining to the collection system must be maintained or appropriate enforcement actions may be ta6n as noted in Condition VI(2) A reportable SSO is an SSO greater than 1,000 gallons to the ground or an SSO of any amount that reaches surface water (including through ditches, storm drains, etc.) Below is the procedure to use for reporting SSOs to the Division: 1. Report by telephone to a Division of Water Quality (DWQ) staff member (not email, facsimile, or voicemail) at your regional DWQ office during regular business hours (Monday to Friday, 8AM to 5PM) as soon as possible, but in no case more than 24 hours after the SSO is known or discovered. To report outside of regular business hours, call (800) 858-0368. 2. Follow up the verbal report by sending a completed written report on the most current Division approved form within five days. To provide a uniform method for all systems covered under this permit and to provide useful and consistent information pertaining to SSOs, please utilize form CS-SSO consisting of two parts. Part I serves to provide to the Division the required information that has always been necessary. Part II serves as an area to provide a justification for the spill, as optional under Condition I(2) of your permit. Form CS-SSO can be downloaded from the SSO Reporting area at httl2:Hportal.ncdenr.ory/web/wq/sn/ps/cs/ssoEW2d. An NOV, civil penalty, and/or a moratorium on the addition of waste to the system may be issued if adequate justification for an SSO is NOT submitted to the regional office. In order to submit a claim for justification of an SSO, you must use Form CS-SSO with additional documentation as necessary. DWQ staff will review the justification claim and determine if enforcement action is appropriate. Please be advised that the information needed to justify a spill is very comprehensive. Begin using this form immediately to report SSOs from the collection system. Continue to use our old form for reporting bypasses at the wastewater treatment plant until further notice. The time frame for submittal of both Part I and Part II, if pertinent, is five days. Failure to abide by the conditions in this permit may subject the Permittee to enforcement action. If any parts, requirements, or limitations contained in this permit are unacceptable, you have the right to request an adjudicatory hearing upon written request within thirty days following the receipt of this permit. 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, NC 27699-6714. Unless such demands are made, this permit shall be final and binding. J Kinlaw, Vice President May 1, 2013 Page 3 of 3 If you have questions regarding Compliance contact your regional office or the Pretreatment, Emergency Response and Collection Systems Unit of the North Carolina Division of Water Quality at (919) 807-6300. If you need additional information concerning this permit, please contact Deborah Gore at (919) 807-6383. Sincerely, 1 for Charles Wakild, P.E., Director Division of Water Quality by Deborah Gore, Supervisor Pretreatment, Emergency Response, Collection System Unit enclosure: Permit No. WQCS00230 cc: Onslow County Health Department Wilmington Regional Office, Surface Water Protection Section Water Quality Central Files - WQCS00230 Steve Reid, NPDES — Compliance & Expedited Permitting Unit (electronic) PERCS Files (electronic) NORTH CAROLINA ENVIRONMENTAL MANAGEMENT COMMISSION DEPARTMENT OF ENVIRONMENT AND NATURAL RESOURCES RALEIGH SYSTEM -WIDE WASTEWATER COLLECTION SYSTEM PERMIT In accordance with the provisions of Article 21 of Chapter 143, General Statutes of North Carolina as amended, and other applicable Laws, Rules, and Regulations PERMISSION IS HEREBY GRANTED TO THE Webb Creek Water and Sewage Inc Onslow County FOR THE operation and maintenance of a wastewater collection system consisting of, at the time of permit issuance, approximately 11.9 miles of gravity sewer, approximately 2.6 miles of force main, approximately 0.25 miles of pressure sewer, 3 simplex pump stations that discharge to a pressure sewer and serve multiple buildings, and 8 duplex pump stations, and all associated piping, valves, and appurtenances required to make a complete and operational wastewater collection system to serve the Webb Creek Water and Sewage Inc and any deemed permitted satellite communities, pursuant to the application received 12/12/2012, and in conformity with the documents referenced therein and other supporting data subsequently filed and approved by the Department of Environment and Natural Resources and considered a part of this permit. This permit shall be effective from the June 1, 2013 until May 31, 2021, and shall be subject to the following specified conditions and limitations: I. PERFORMANCE STANDARDS 1. The sewage and wastewater collected by this system shall be treated in the Webb Creek Wastewater Treatment Facility (NC0062642) prior to being disposed into the receiving stream. This collection system permit will be referenced upon renewal or modification of your NPDES permit(s). 2. The wastewater collection system shall be effectively managed, maintained and operated at all times so that there is no SSO to land or surface waters, nor any contamination of groundwater. In the event that the wastewater collection system fails to perform satisfactorily, including the creation of nuisance conditions, the Permittee shall take immediate corrective actions, including actions that may be required by the Division of Water Quality (Division), such as the construction of additional or replacement sewer lines and/Or equipment. The Director may take enforcement action against the Permittee for SSOs that must be reported to the Division as stipulated in Condition IV(2). This includes SSOs that were caused by severe natural conditions or exceptional events unless the Permittee demonstrates through properly signed, contemporaneous operating logs, or other relevant evidence that: a. The SSO was caused by severe natural conditions; there were no feasible alternatives to the SSO, such as the use of auxiliary treatment facilities, retention of untreated wastewater, reduction of inflow and infiltration, use of adequate back-up equipment, or an increase in the capacity of the system. This provision is not satisfied if, in the exercise of reasonable engineering judgment, the Permittee should have installed auxiliary or additional collection system components, wastewater retention or treatment facilities, adequate back-up equipment or should have reduced inflow and infiltration; or b. The SSO was exceptional, unintentional, temporary and caused by factors beyond the reasonable control of the Permittee; the SSO could not have been prevented by the exercise of reasonable control, such as proper management, operation and maintenance; adequate treatment facilities or collection system facilities or components (e.g., adequately enlarging treatment or collection facilities to accommodate growth or adequately controlling and preventing infiltration and inflow); preventive maintenance; or installation of adequate back- up equipment; The Permittee can submit a claim to the Division Regional Office that the SSO meets the criteria of this condition. The Permittee has the option of submitting this claim along with the spill report required by Condition IV(2) (i.e., within five days) in order to be considered for immunity from enforcement action. Form CS-SSO Part It, or most current Division approved form, shall be used for any claims. The Permittee has the burden of proof that the above criteria have been met. 3. The Permittee shall establish by ordinance its legal authority to require new sewers be properly constructed; to ensure proper inspection and testing of sewer mains and service laterals; to address flows from satellite systems and to take enforcement action as required by Condition 1(4). 4. The Permittee shall develop and implement an educational fats, oils and grease program that shall include at least bi-annual distribution of educational material targeted at both residential and non-residential users. The Permittee shall also develop and implement an enforceable fats, oils and grease program for non-residential users under which the Permittee can take enforcement against users who have not properly installed, operated and maintained grease traps or grease interceptors as directed or otherwise violated the terms of the local ordinance pertaining to fats, oils and grease. 5. The Permittee shall adopt and implement a Capital Improvement Plan (CIP) to designate funding for reinvestment into the wastewater collection system infrastructure. The CIP should address the short-term needs and long-term "master plan" concepts. The CIP should typically cover a three to five year period and include a goal statement, description of the project area, description of the existing facilities, known deficiencies (over a reasonable period) and forecasted future needs. Cost analysis is integral to the CIP. 6. Existing overflow piping from manholes and pump stations, excluding piping to approved equalization structures, known or discovered after permit issuance shall be immediately removed or permanently capped. Plugged emergency pumping connections are allowable for portable pumping or rerouting without intentionally bypassing the wastewater treatment facility. 7. The Permittee shall maintain a contingency plan for pump failure at each pump station. If one of the pumps in a pump station containing multiple pumps fails, the process of repairing or replacing the pump shall be initiated immediately and the new parts or pump shall be installed as soon as possible. If the pump in a simplex pump station fails, it shall be replaced immediately. 8. Each pump station shall be clearly and conspicuously posted with a pump station identifier and an emergency contact telephone number at which an individual who can initiate or perform emergency service for the wastewater collection system 24 hours per day, seven days per week can be contacted. This emergency contact telephone number shall be coupled with instructions that the emergency contact should be called if the visual alarm illuminates, if the audible alarm sounds, or if an emergency is apparent. 9. Pump station sites, equipment and components shall have restricted access, per 15A NCAC 02T .305(h)(4). 10. Pump stations that do not employ an automatic polling feature (i.e. routine contact with pump stations from a central location to check operational status of the communication system) shall have both audible and visual high water alarms. The alarms shall be weather-proof and placed in a clear and conspicuous location. Permits issued for the construction of pump stations that included high water alarms in the description must maintain the alarms even if simple telemetry (i.e. notification of an alarm condition initiated by the pump station control feature) is installed. 11. For all newly constructed, modified and rehabilitated pump stations, all equipment and components located within the pump station shall be corrosion -resistant and components in close proximity of the pump station shall be sealed within a corrosion - resistant coating or encasement. 12. All construction and rehabilitation of the wastewater collection system (i.e., permitted or deemed permitted) shall be scheduled to minimize the interruption of service by the existing utilities. Construction and rehabilitation shall not result in the violation of Condition (1)(2) of this permit. 11. OPERATION AND MAINTENANCE REQUIREMENTS 1. Upon classification of the collection system by the Water Pollution Control System Operators Certification Commission (WPCSOCC), the Permittee shall designate and employ a certified operator to be in responsible charge (ORC) and one or more certified operator(s) to be back-up ORC(s) of the facilities in accordance with 15A NCAC 8G .0201. The ORC shall visit the system within 24 hours of knowledge of a bypass, spill, or overflow of wastewater from the system, unless visited by the Back -Up ORC, and shall comply with all other conditions of 15A NCAC 80 .0204. 2. The Permittee shall develop and adhere to a schedule for reviewing all inspection, maintenance, operational and complaint logs. If the review process results in the identification of any recurring problem in the wastewater collection system that cannot be resolved in a short time period, the Permittee shall establish a plan for addressing the problem(s). 3. The Permittee shall develop and adhere to a schedule for testing emergency and standby equipment. 4. The Permittee shall develop and implement a routine pump station inspection and maintenance program, which shall include, but not be limited to, the following maintenance activities: a. Cleaning and removing debris from the pump station structure, outside perimeter, and wet well; b. Inspecting and exercising all valves; c. Inspecting and lubricating pumps and other mechanical equipment according to the manufacturer's recommendations; and d. Verifying the proper operation of the alarms, telemetry system and auxiliary equipment. 5. For each pump station without pump reliability (i.e. simplex pump stations serving more than a single building or pump stations not capable of pumping at a rate of 2.5 times the average daily flow rate with the largest pump out of service), at least one fully operational spare pump capable of pumping peak flow shall be maintained on hand. 6. The Permittee shall maintain on hand at least two percent of the number of pumps installed, but no less than two pumps, that discharge to a pressure sewer and serve a single building, unless the Permittee has the ability to purchase and install a replacement pump within 24 hours of first knowledge of the simplex pump failure or within the storage capacity provided in any sewer line extension permit. 7. Rights -of -way and/or easements shall be properly maintained to allow accessibility to the wastewater collection system unless the Permittee can demonstrate the ability to gain temporary access in an emergency situation where existing land -use conditions do not allow the establishment and maintenance of permanent access. In this case, the Permittee shall continue to observe the lines visually, utilize remote inspection methods (e.g. CCTV) and use the opportunity of drier conditions to perform further inspections and necessary maintenance. 8. The Permittee shall assess cleaning needs, and develop and implement a program for appropriately cleaning, whether by hydraulic or mechanical methods, all sewer lines. At least 10 percent of the wastewater collection system, selected at the discretion of the ORC, shall be cleaned each year. Preventative cleaning is not required for sewer lines less than five years old unless inspection otherwise reveals the need for cleaning or cleaning is required by a sewer line extension permit. 9. Adequate measures shall be taken to associated with SSOs. The Permittee addresses the following minimum items: contain and properly dispose of materials shall maintain a Response Action Plan that a. Contact phone numbers for 24-hour response, including weekends and holidays; b. Response time; c. Equipment list and spare parts inventory; d. Access to cleaning equipment; e. Access to construction crews, contractors and/or engineers; f. Source(s) of emergency funds; g. Site sanitation and clean up materials; and h. Post-SSO assessment. 10. The Permittee, or their authorized representative, shall conduct an on -site evaluation for all SSOs as soon as possible, but no more than two hours after first knowledge of the SSO. 11. In the event of an SSO or blockage within the wastewater collection system, the Permittee shall restore the system operation, remove visible solids and paper, sanitize any ground area and restore the surroundings. Ili. RECORDS 1. Records shall be maintained to document compliance with Conditions 1(4), II(2) - li(4), II(7) - II(8), IV(3) and V(1) -V(4). Records shall be kept on file for a minimum of three years. 2. The Permittee shall maintain adequate records pertaining to SSOs, and complaints for a minimum of three years. These records shall include, but are not limited to, the following information: a. Date of SSO or complaint; b. Volume of wastewater released as a result of the SSO and/or nature of complaint; c. Location of the SSO and/or complaint; d. Estimated duration of the SSO; e. Individual from the Division who was informed about the SSO and/or complaint, when applicable; f. Final destination of the SSO; g. Corrective actions; h. Known environmental/human health impacts resulting from the SSO; and i. How the SSO was discovered. 3. The Permittee shall maintain an up-to-date, accurate, comprehensive map of its wastewater collection system that also notes the locations where other wastewater collection systems become tributary. If a comprehensive map of the collection system has not been established, a rough sketch shall be drawn. The Permittee. shall map approximately 10 percent of its existing collection system each year for the next ten years beginning at the original permit issuance date, or until complete, whichever is sooner. The comprehensive map shall include, but is not limited to: pipe size, pipe material, pipe location, flow direction, approximate pipe age, number of active service taps, and each pump station identification, location and capacity. 4. The Permittee shall maintain records of all of the modifications and extensions to the collection system permitted herein. The Permittee shall maintain a copy of the construction record drawings and specifications for modifications/extensions to the wastewater collection system for the life of the modification/extension. Information concerning the extension shall be incorporated into the map of the wastewater collection system within one year of the completion of construction. The system description contained within this permit shall be updated to include this modification/extension information upon permit renewal. IV. MONITORING AND REPORTING REQUIREMENTS 1. Any monitoring (including, but not necessarily limited to, wastewater flow, groundwater, surface water, soil or plant tissue analyses) deemed necessary by the Division to ensure surface water and groundwater protection will be established, and an acceptable sampling and reporting schedule shall be followed. 2. The Permittee shall verbally report to a Division of Water Quality staff member at the Wilmington Regional Office, at telephone number 910-796-7215 as soon as possible, but in no case more than 24 hours following the occurrence or first knowledge of the occurrence of either of the following: a. Any SSO and/or spill over 1,000 gallons; or b. Any SSO and/or spill, regardless of volume, that reaches surface water. Voice mail messages or faxed information shall not be considered as the initial verbal report. SSOs (and other types of spills) occurring outside normal business hours may also be reported to the Division of Emergency Management at telephone number (800) 858-0368 or (919) 733-3300. Persons reporting any of the above occurrences shall file a spill report by completing Part I of Form CS-SSO (or the most current Division approved form), within five days following first knowledge of the occurrence. This report shall outline the actions taken or proposed to ensure that the problem does not recur. Per Condition 1(2), Part II of Form CS-SSO (or the most current Division approved form) can also be completed to show that the SSO was beyond control. 3. The Permittee shall meet the annual reporting and notification requirements provided in North Carolina General Statute §143-215.1 C. V. INSPECTIONS 1. The Permittee or the Permittee's designee shall inspect the wastewater collection system regularly to reduce the risk of malfunctions and deterioration, operator errors, and other issues that may cause or lead to the release of wastes to the environment, threaten human health or create nuisance conditions. The Permittee shall keep an inspection log or summary including, at a minimum, the date and time of inspection, observations made, and any maintenance, repairs, or corrective actions taken by the Permittee. 2. Pump stations without Supervisory Control and Data Acquisition (SCADA) systems or telemetry shall be inspected everyday (i.e. 365 days per year). Pump stations equipped With SCADA systems or telemetry shall be inspected at least once per week. This condition applies to duplex pump stations and simplex pump stations serving more than a single building. 3. A general observation of the entire collection system shall be performed throughout the course of every year. 4. Inspections of all high priority lines (i.e. aerial line, sub -waterway crossing, line contacting surface waters, siphon, line positioned parallel to stream banks that are subject to eroding in such a manner that may threaten the sewer line, or line designated as high -priority in a permit) shall be performed at least once per every six-month period of time. A list of high -priority lines is presented as Attachment A and is hereby incorporated into this permit condition. New high priority lines installed or identified after permit issuance are incorporated by reference and subject to this permit condition until permit renewal where they shall be referenced in writing in Attachment A. No high priority lines identified at permit issuance. VI. GENERAL CONDITIONS This permit is not transferable. In the event that the Permittee desires to transfer ownership of the wastewater collection system or there is a name change of the Permittee, a formal permit modification request shall be submitted to the Division. The request shall be accompanied by documentation from the parties involved, and other supporting materials as may be appropriate. Such request will be considered on its merits and may or may not be approved. 2. Failure to abide by the conditions and limitations contained in this permit may subject the Permittee to an enforcement action by the Division in accordance with North Carolina General Statute §143-215.6A through §143-215.6C, and a sewer moratorium may be established. 3. The issuance of this permit does not exempt the Pei-mlttee from complying with any and all statutes, rules, regulations, or ordinances that may be imposed by other government agencies (i.e., local, state, and federal) having jurisdiction, including but not tlmited to applicable river buffer rules in 15A NCAC 2B .0200, soil erosion and sedimentation control requirements in 15A NCAC Chapter 4 and under the Division's General Permit NCG010000, and any requirements pertaining to wetlands under 15A NCAC 2B .0200 and 15A NCAC 02T .0100 and all applicable North Carolina Occupational Safety and Health Act health and safety standards. 4. The issuance of this permit does not prohibit the Division from reopening and modifying the permit, revoking and reissuing the permit or terminating the permit as allowed by the laws, rules, and regulations contained in 15A NCAC 02T .0100 and North Carolina General Statute §143-215.1 et. al., or as needed to address changes in federal regulations with respect to the wastewater collection system. 5. The Permittee shall pay the annual fee within thirty (30) days after being billed by the Division. Failure to pay the fee accordingly may cause the Division to initiate action to revoke this permit as specified by 15A NCAC 02T .0110(4). 6. The Permittee shall request renewal of this permit at least six months prior to the expiration of this permit. Upon receipt of the request, the Commission will review the adequacy of the wastewater collection system described therein, and if warranted, will extend the permit for a period of time and under such conditions and limitations, as the Commission may deem appropriate. 7. The Permittee shall notify the Division's Pretreatment, Emergency Response and Collection Systems Unit in writing at 1617 Mail Service Center, Raleigh, North Carolina 27699-1617 of any changes to the name and/or address of the responsible party (i.e, mayor, city/town manager) of the wastewater collection system. 8. Any duly authorized officer, employee, or representative of the Division may, upon presentation of credentials, enter and inspect any property, premises or place on or related to the collection system at any reasonable time for the purpose of determining - compliance with -this -permit, may inspect or copy any records that must be maintained under the terms and conditions of this permit, and may obtain samples of wastewater, groundwater, surface water, soil, or plant tissue. Permit issued this the 1st of May, 2013 NORTH CAROLINA ENVIRONMENTAL MANAGEMENT COMMISSION for Charles Wakild, P.E., Director Division of Water Quality By Authority of the Environmental Management Commission by Deborah Gore, Supervisor Pretreatment, Emergency Response, Collection System Unit Permit Number VJQCS00230 (Renewal) Water Resources ENVIRONMENTAL OUALITY March 15, 2017 Mr. David M. Mohr, P.E., Engineering Director Onslow Water and Sewer Authority (ONWASA) PO Box 1415 Jacksonville, NC 28540 Subject: Permit No. WQCS00249 Onslow Water and Sewer Authority (ONWASA) ONWASA Collection System Onslow County Dear Mr. Mohr: ROY COOPER MICHAEL S. REGAN S. JAY ZIMMERMAN In accordance with your application received February 2, 2017, we are forwarding herewith Permit No. WQCS00249, dated March 15, 2017, to the Onslow Water and Sewer Authority for the operation and maintenance of the subject wastewater collection system. This permit shall be effective from March 15, 2017 until December 31, 2025 and shall be subject to the conditions and limitations specified herein. It is your responsibility to thoroughly review this permit. Please pay particular attention to the monitoring and reporting requirements in this permit and any special conditions. Changes have been made to the boiler plate language of the permit. Most of the changes are for clarification purposes, however Condition 1(3) has been removed. The Department of Environmental Quality (DEQ) believes that condition was included erroneously in previous permits. It was included based on proposed rulemaking by EPA which was never promulgated and, in the continued absence of Federal regulations, DEQ lacks authority to include such language in a permit. DEQ will continue to exercise enforcement discretion when evaluating sanitary sewer overflows that may be considered to be beyond the reasonable control of the Permittee. A highlighted copy of the permit identifying the changes made is available at: http://ncdenr.s3.amazonaws.com/s3fs- public/Water%20Quality/Surface%2OWate&o2OProtection/PERCS/WCS%20(Collection%20System)/Updated %20WQCS%20Template%2015.05.18%20(highlighted).pdf For purposes of permitting, the collection system is considered to be any existing or newly installed system extension up to the wastewater treatment facility property or point of connection with a separately owned sewer system. The collection system is considered all gravity lines, pump stations, force mains, low pressure sewer systems, STEP systems, vacuum systems, etc. and associated piping, valves and appurtenances that help to collect, manage and transport wastewater to a wastewater treatment plant under the Permittee's ownership or maintained and operated by the Permittee through a perpetual legal agreement. Satellite systems are systems tributary to the Permittee's collection system but those collection systems are not owned or maintained by the Permittee. The system description provided on Page 1 of this permit is meant to provide a general idea about the size of the system and may not be all inclusive of the collection system at the time of permit issuance or afterward. 1617 Mail Service Center, Raleigh, North Carolina 27699-1617 Phone: 919-807-63001 Internet: www.ncwaterquality.org An Equal Opportunity 1 Affirmative Action Employer— Made in part by recycled paper ONWASA Collection System March 15, 2017 A discharge of wastewater to the environment from the Permittee's wastewater collection system prior to reaching the wastewater treatment facilities is referred to herein as a Sanitary Sewer Overflow (SSO). The evaluation of enforcement options after an SSO will be determined considering all relevant information available or requested of the Permittee. Compliance with all conditions of the permit as well as all statutes and regulations pertaining to the wastewater collection system must be maintained or appropriate enforcement actions may be taken as noted in Condition VI(2). A reportable SSO is an SSO greater than 1,000 gallons to the ground or an SSO of any amount that reaches surface water (including through ditches, storm drains, etc.). Reporting requirements including the required verbal report and written report to the appropriate regional office are referenced in Condition IV(2). Form CS-SSO can be downloaded from the SSO Reporting area at: http://ncdenr.s3.amazonaws.com/s3fs- Public/Water%20Qua I ity/Surface%2OWate r%20Protection/P E RCS/WCS%20(SSO%2ODocuments)/CS- SSO(2015).doc A notice of deficiency (NOD), notice of violation (NOV), civil penalty, and/or a moratorium on the addition of waste to the system may be issued if adequate justification for an SSO is NOT submitted to the regional office. In order to submit a claim for justification of an SSO, you must use Part II of form CS-SSO with additional documentation as necessary. DWR staff will review the justification claim and determine if enforcement action is appropriate. Please be advised that the information needed to justify a spill is very comprehensive. If any parts, requirements, or limitations contained in this permit are unacceptable, you have the right to request an adjudicatory hearing upon written request within thirty days following the receipt of this permit. This request must be in the form of a written petition, conforming to Chapter 150E of the North Carolina General Statutes, and filed with the Office of Administrative Hearings, 6714 Mail Service Center, Raleigh, NC 27699-6714. Unless such demands are made, this permit shall be final and binding. If you have questions regarding compliance, contact the appropriate regional office. If you need additional information concerning this permit, please contact Steve Lewis at (919) 807-6308. Sincerely, for S. Jay Zimmerman, P.G. Director, Division of Water Resources by Deborah Gore, Supervisor Pretreatment, Emergency Response, Collection System Unit (PERCS) enclosure: Permit No. WQCS00249 cc: Wilmington Regional Office, Water Quality Regional Operations Water Resources Central Files — WQCS00249 Maureen Kinney, NC Operators Certification Program (electronic) PERCS Files (electronic) STATE OF NORTH CAROLINA ENVIRONMENTAL MANAGEMENT COMMISSION DEPARTMENT OF ENVIRONMENTAL QUALITY SYSTEM -WIDE COLLECTION SYSTEM PERMIT In accordance with the provisions of Article 21 of Chapter 143, General Statutes of North Carolina as amended, and other applicable Laws, Rules, and Regulations, permission is hereby granted to the Onslow Water and Sewer Authority (ONWASA) W QCS00249 FOR THE operation and maintenance of a wastewater collection system consisting of, at the time of permit issuance, approximately 85 miles of gravity sewer, approximately 1 mile of pressure sewer, approximately 86 miles of force main, 8 simplex pump stations that discharge to a pressure sewer and serve a single building and 70 duplex pump stations, and all associated piping, valves, and appurtenances required to make a complete and operational wastewater collection system to serve the Onslow Water and Sewer Authority and any deemed permitted satellite communities pursuant to the application received February 6, 2017, and in conformity with the documents referenced therein and other supporting data subsequently filed and approved by the Department of Environmental Quality and considered a part of this permit. This permit shall be effective from March 15, 2017 until December 31, 2025, and shall be subject to the following specified conditions and limitations: Page 1 of 7 I. PERFORMANCE STANDARDS 1. The sewage and wastewater collected by this system shall be treated in the properly permitted Wastewater Treatment Facility identified in the permit application and documented in the Division's database. [15A NCAC 02T .0108 (b)] 2. The wastewater collection system shall be effectively managed, maintained and operated at all times to prevent discharge to land or surface waters, and to prevent any contravention of groundwater standards or surface water standards. In the event that the wastewater collection system fails to perform satisfactorily, including the creation of nuisance conditions, the Permittee shall take immediate actions as per the Response Action Plan (Condition II(9)), as well as any actions that may be required by the Division of Water Resources (Division), such as the construction of additional or replacement sewer lines and/or equipment. [15A NCAC 02T .0108 (b)] 3. The Permittee shall establish by ordinance, inter -local agreement or contract its legal authority to require new sewers be properly constructed; to ensure proper inspection and testing of sewer mains and service laterals; to address flows from satellite systems and to take enforcement action as required by Condition 1(4). [G.S. 143-215.96; G.S. 143-215.1(f)(1)] 4. The Permittee shall develop and implement an educational fats, oils and grease program that shall include at least semiannual distribution of educational material targeted at both residential and non- residential users. The Permittee shall also develop and implement an enforceable fats, oils and grease program for non-residential users under which the Permittee can take enforcement against users who have not properly installed, operated and maintained grease traps or grease interceptors as directed or otherwise violated the terms of the enforcement program pertaining to fats, oils and grease. [15A NCAC 02T .0108 (b)] 5. The Permittee shall adopt and implement a Capital Improvement Plan (CIP) to designate funding for reinvestment into the wastewater collection system infrastructure. The CIP should address the short- term needs and long-term "master plan" concepts. The CIP should typically cover a three to five year period and include a goal statement, description of the project area, description of the existing facilities, known deficiencies (over a reasonable period) and forecasted future needs. Cost analysis is integral to the CIP. [G.S. 143-215.913] 6. Overflow piping from manholes and pump stations, excluding piping to approved equalization structures, known or discovered after permit issuance shall be immediately removed or permanently capped. Plugged or valved emergency pumping connections are allowable for portable pumping or rerouting without intentionally bypassing the wastewater treatment facility. [15A NCAC 02T .0108 (b)] 7. The Permittee shall maintain a contingency plan for pump failure at each pump station. If one of the pumps in a pump station containing multiple pumps fails, the process of repairing or replacing the pump shall be initiated immediately and the new parts or pump shall be installed as soon as possible. The permittee shall provide justification for delay in initiating the process for repair or replacement at the Division's request. If the pump in a simplex pump station serving more than a single building or pump stations not capable of pumping at a rate of 2.5 times the average daily flow rate with the largest pump out of service fails, it shall be replaced immediately. [15A NCAC 02T .0305 (h) (1)] Page 2 of 7 8. Each pump station shall be clearly and conspicuously posted with a pump station identifier and an emergency contact telephone number at which an individual who can initiate or perform emergency service for the wastewater collection system 24 hours per day, seven days per week can be contacted. This emergency contact telephone number shall be coupled with instructions that the emergency contact should be called if the visual alarm illuminates, if the audible alarm sounds, or if an emergency is apparent. [15A NCAC 02T .0305 (h) (2)] 9. Pump station sites, equipment and components shall have restricted access. [15A NCAC 02T .0305 (h) (4)] 10. Pump stations that do not employ an automatic polling feature (i.e. routine contact with pump stations from a central location to check operational status of the communication system) shall have both audible and visual high water alarms. The alarms shall be weather-proof and placed in a clear and conspicuous location. Permits issued for the construction of pump stations that included high water alarms in the description must maintain the alarms even if simple telemetry (i.e. notification of an alarm condition initiated by the pump station control feature) is installed. [15A NCAC 02T .0305 (h) (1)] 11. For all newly constructed, modified and rehabilitated pump stations, all equipment and components shall be sealed within a corrosion -resistant coating or encasement to the extent practicable and equivalent to the minimum design criteria unless the permittee can demonstrate it is not practicable or another form of corrosion resistance is employed. [15A NCAC 02T .0108 (b)] II. OPERATION AND MAINTENANCE REQUIREMENTS 1. Upon classification of the collection system by the Water Pollution Control System Operators Certification Commission (WPCSOCC), the Permittee shall designate and employ a certified operator to be in responsible charge (ORC) and one or more certified operator(s) to be back-up ORC(s) of the facilities in accordance with 15A NCAC 8G .0201. The ORC shall visit the system within 24 hours of knowledge of a bypass, spill, or overflow of wastewater from the system, unless visited by the Back -Up ORC, and shall comply with all other conditions of 15A NCAC 8G .0204. [15A NCAC 08G .0200 et.seq.] 2. The Permittee shall develop and adhere to a schedule for reviewing all inspection, maintenance, operational and complaint logs. If the review process results in the identification of any recurring problem in the wastewater collection system that cannot be resolved in a short time period, the Permittee shall establish a plan for addressing the problem(s). [15A NCAC 02T .0108 (b)] 3. The Permittee shall develop and adhere to a schedule for testing emergency and standby equipment. [15A NCAC 02T .0108 (b)] 4. The Permittee shall develop and implement a routine pump station inspection and maintenance program which shall include the following maintenance activities: a. Cleaning and removing debris from the pump station structure, outside perimeter, and wet well; b. Inspecting and exercising all valves; c. Inspecting and lubricating pumps and other mechanical equipment; and d. Verifying the proper operation of the alarms, telemetry system and auxiliary equipment. [15A NCAC 02T .0108 (b)] Page 3 of 7 5. For each pump station without pump reliability (i.e. simplex pump stations serving more than a single building or pump stations not capable of pumping at a rate of 2.5 times the average daily flow rate with the largest pump out of service), at least one fully operational spare pump capable of pumping peak flow shall be maintained on hand. [15A NCAC 02T .0305 (h) (1) (A)] The Permittee shall maintain on hand at least two percent of the number of pumps installed, but no less than two pumps, that discharge to a pressure sewer and serve a single building, unless the Permittee has the ability to purchase and install a replacement pump within 24 hours of first knowledge of the simplex pump failure or within the storage capacity provided in a sewer line extension permit. [15A NCAC 02T .0108 (b)] Rights -of -way and/or easements shall be properly maintained to allow accessibility to the wastewater collection system unless the Permittee can demonstrate the ability to gain temporary access in an emergency situation where existing land -use conditions do not allow the establishment and maintenance of permanent access. In this case, the Permittee shall continue to observe the lines visually, utilize remote inspection methods (e.g. CCTV) and use the opportunity of drier conditions to perform further inspections and necessary maintenance. [15A NCAC 02T .0108 (b)] The Permittee shall assess cleaning needs, and develop and implement a program for appropriately cleaning, whether by hydraulic or mechanical methods, the wastewater collection system. At least 10 percent of the gravity wastewater collection system, selected at the discretion of the ORC, shall be cleaned each year. Preventative cleaning is not required for sewer lines less than five years old unless inspection otherwise reveals the need for cleaning or cleaning is required by a sewer line extension permit. [15A NCAC 02T .0108 (b)] 9. The Permittee shall maintain a Response Action Plan that addresses the following minimum items: a. Contact phone numbers for 24-hour response, including weekends and holidays; b. Response time; c. Equipment list and spare parts inventory; d. Access to cleaning equipment; e. Access to construction crews, contractors and/or engineers; f. Source(s) of emergency funds; g. Site restoration and clean up materials; and h. Post-SSO assessment. [15A NCAC 02T .0108 (b)] 10. The Permittee, or their authorized representative, shall conduct an on -site evaluation for all SSOs as soon as possible, but if feasible no more than two hours after first knowledge of the SSO. The Permittee shall document in its 5-day report why it was unable to initially respond to any SSO location within two hours. [15A NCAC 02T .0108 (b)] 11. In the event of an SSO or blockage within the wastewater collection system, the Permittee shall restore the system operation, remove visible solids and paper, restore any ground area and restore the surroundings. [15A NCAC 02T .0108 (b)] III. RECORDS Records shall be maintained to document compliance with Conditions 1(4), II(2) - 11(4), II(7) - II(8), IV(3) and V(1) -V(4). Records shall be kept on file for a minimum of three years. [15A NCAC 02T .0108 (b)] Page 4 of 7 2. The Permittee shall maintain adequate records pertaining to SSOs, and SSO or wastewater collection system complaints for a minimum of three years. These records shall include, but are not limited to, the following information: a. Date of SSO or complaint; b. Volume of wastewater released as a result of the SSO and/or nature of complaint; c. Location of the SSO and/or complaint; d. Estimated duration of the SSO; e. Individual from the Division who was informed about the SSO and/or complaint, when applicable; f. Final destination of the SSO; g. Corrective actions; h. Known environmental/human health impacts resulting from the SSO; and i. How the SSO was discovered. [15A NCAC 02T .0108 (b)] 3. The Permittee shall maintain an up-to-date, accurate, comprehensive map of its wastewater collection system that also notes the locations where other wastewater collection systems become tributary. If a comprehensive map of the collection system has not been established, a rough sketch shall be drawn. The Permittee shall map approximately 10 percent of its existing collection system each year for the next ten years beginning at the original permit issuance date, or until complete, whichever is sooner. The comprehensive map shall include, but is not limited to: pipe size, pipe material, pipe location, flow direction, approximate pipe age, and each pump station identification, location and capacity. [15A NCAC 02T .0108 (b)] 4. The Permittee shall maintain records of all of the modifications and extensions to the collection system permitted herein. The Permittee shall maintain a copy of the construction record drawings and specifications for modifications/extensions to the wastewater collection system for the life of the modification/extension. Information concerning the extension shall be incorporated into the map of the wastewater collection system within one year of the completion of construction. The system description contained within this permit shall be updated to include this modification/extension information upon permit renewal. [15A NCAC 02T .0108 (b)] IV. MONITORING AND REPORTING REQUIREMENTS 1. In the event of an SSO the Division may require monitoring that is necessary to ensure surface water and groundwater protection and an acceptable sampling and reporting schedule shall be implemented. [15A NCAC 02T .0108 (c)] 2. The Permittee shall verbally report to a Division of Water Resources staff member at the Wilmington Regional Office, at telephone number (910) 796-7215 as soon as possible, but in no case more than 24 hours following first knowledge of the occurrence of the following circumstances within the collection system which is under the Permittee's ownership or maintained and operated by the Permittee through a perpetual legal agreement: a. Any SSO and/or spill over 1,000 gallons to the ground; or b. Any SSO and/or spill, regardless of volume, that reaches surface water. Voice mail messages or faxed information shall not be considered as the initial verbal report. SSOs (and other types of spills) occurring outside normal business hours may also be reported to the Division of Emergency Management at telephone number (800) 858-0368 or (919) 733-3300. Page 5 of 7 Persons reporting any of the above occurrences shall file a spill report by completing Part I of Form CS- SSO (or the most current Division approved form), within five business days following first knowledge of the occurrence. This report shall outline the actions taken or proposed to ensure that the problem does not recur. [G.S. 143-215.1C(al)] 3. The Permittee shall meet the annual reporting and notification requirements provided in North Carolina General Statute §143-215.1C. V. INSPECTIONS 1. The Permittee or the Permittee's designee shall inspect the wastewater collection system regularly to reduce the risk of malfunctions and deterioration, operator errors, and other issues that may cause or lead to the release of wastes to the environment, threaten human health or create nuisance conditions. The Permittee shall keep an inspection log or summary including, at a minimum, the date and time of inspection, observations made, and any maintenance, repairs, or corrective actions taken by the Permittee. [15A NCAC 02T .0108 (b)] 2. Pump stations that are not connected to a telemetry system (i.e., remote alarm system) shall be inspected by the permittee or its representative every day (i.e., 365 days per year). Pump stations that are connected to telemetry shall be inspected at least once per week. [15A NCAC 02T .0108 (b)] 3. A general observation by the permittee or its representative of the entire wastewater collection system shall be conducted at least once per year. [15A NCAC 02T .0108 (b)] 4. Inspections of all high priority lines (i.e. aerial line, sub -waterway crossing, line contacting surface waters, siphon, line positioned parallel to stream banks that are subject to eroding in such a manner that may threaten the sewer line, or line designated as high -priority in a permit) shall be performed at least once per every six-month period of time. A list of high -priority lines is presented as Attachment A and is hereby incorporated into this permit condition. New high priority lines installed or identified after permit issuance are incorporated by reference and subject to this permit condition until permit renewal where they shall be referenced in writing in Attachment A. [15A NCAC 02T .0108 (b)] VI. GENERAL CONDITIONS 1. This permit is not transferable. In the event that the Permittee desires to transfer ownership of the wastewater collection system orthere is a name change of the Permittee, a formal permit modification request shall be submitted to the Division. The request shall be accompanied by documentation from the parties involved, and other supporting materials as may be appropriate. Such request will be considered on its merits and may or may not be approved. [15A NCAC 02T .0104; G.S. 143-215.1(d)(3)] 2. Failure to abide by the conditions and limitations contained in this permit may subject the Permittee to an enforcement action by the Division in accordance with North Carolina General Statute §143-215.6A through §143-215.6C, and a sewer moratorium may be established. [15A NCAC 02T .0104] 3. The issuance of this permit does not exempt the Permittee from complying with any and all statutes, rules, regulations, or ordinances that may be imposed by other government agencies (i.e., local, state, and federal) having jurisdiction. [G.S. 143-215.1(b)] 4. The issuance of this permit does not prohibit the Division from reopening and modifying the permit, revoking and reissuing the permit or terminating the permit as allowed by the laws, rules, and regulations or as needed to address changes in federal regulations with respect to the wastewater collection system, in accordance with required procedures. [G.S. 143-215.1(b)(4)] Page 6 of 7 5. The Permittee shall pay the annual fee within thirty (30) days after being billed by the Division. Failure to pay the fee accordingly may cause the Division to initiate action to revoke this permit. [15A NCAC 02T .0110 (4)] 6. The Permittee shall file an application for renewal of this permit at least six months prior to the expiration of this permit. Upon receipt of the request, the Director will review the adequacy of the wastewater collection system described therein, and if warranted, will extend the permit for a period of time and under such conditions and limitations, as the Director may deem appropriate. [15A NCAC 02T .0109] 7. The Permittee shall notify the Division's Pretreatment, Emergency Response and Collection Systems Unit in writing at 1617 Mail Service Center, Raleigh, North Carolina 27699 of any changes to the name and/or address of the responsible party (i.e. mayor, city/town manager) of the wastewater collection system. [15A NCAC 02T .0106 (c)] 8. Any duly authorized officer, employee, or representative of the Division may, upon presentation of credentials, enter and inspect any property, premises or place on or related to the collection system at any reasonable time for the purpose of determining compliance with this permit, may inspect or copy any records that must be maintained under the terms and conditions of this permit, and may obtain samples of wastewater, groundwater, surface water, soil, or plant tissue. [15A NCAC 02T .0110 (3)] 9. The Permittee or their authorized representative shall have available a copy of this permit to present upon request by any duly authorized officer, employee, or representative of the Division. [15A NCAC 02T .0104] Permit issued this the 15th of March, 2017 NORTH CAROLINA ENVIRONMENTAL MANAGEMENT COMMISSION for S. Jay Zimmerman, P.G. Director, Division of Water Resources By Authority of the Environmental Management Commission by Deborah Gore, Pretreatment, Emergency Response, Collection System Unit Supervisor Division of Water Resources, NCDEQ Page 7 of 7 1 SECTION IV.3 - ONWASA PUMP STATIONS Jacksonville Area (ID 1-99) Alarm Type Station ID Station Name Station Address (See Note 1) _I Pump Reliability Reliability Source (Generator) Capacity (GPM) Type 1 Walnut Drive Ext Pump Station 626 Walnut Drive Ext. AN/Missions Yes Permanent 40 Duplex 2 Southwest Elementary School Pump Station 2601 Bur aw Hwy AN/Missions Yes Permanent 80 Duplex 3 Burton Industrial Park Pump station 459 W.C. Jarman Blvd. AN/Missions Yes Permanent 660 Triplex 4 Albert Ellis Airport Pump Station 264 Albert Ellis Airport Road AN/Ctrbox Yes Permanent 280 Duplex 6 Hwy 53 Pump Station 1351 Burgaw Hwy AN/Ctrbox Yes Permanent 32 Duplex 7 South Branch Rentals Pump Station Behind 128 Stallion Drive AN/Ctrbox Yes Permanent 180 Duplex- 8 Kenwood Pump Station 507 OCI Drive AN/Missions Yes Permanent 280 Duplex Richlands Area (ID 100-199) 100 Comfort Hwy Pump Station 418 North Wilmington Street AN/Missions Yes Permanent 180 Duplex 101 Dreadnaught Street Pump Station 322 Dreadnaught Street AN/Ctrbox Yes Portable 100 Duplex 102 East Hargett Street Pump Station East Hargett Street AN/Ctrbox Yes Portable 320 Duplex 103 Ervintown Pump Station 295 Kinston Hwy AN/Missions Yes Permanent 100 Duplex 104 Western Onslow Trunk Sewer Pump Station 7512 Richlands Hwy AN/SCADA Yes Permanent 1400 Triplex 105 Jarman's Fork Pump Station 900 Kinston Hwy AN/Missions Yes Permanent 80 Duplex 106 Tri-Field Pump Station 119 Esquire Drive AN/Missions Yes Permanent 250 Duplex 107 West Foy Street Pump Station 400 West Foy Street AN/Ctrbox Yes Permanent 50 Duplex 108 Williams Street Ext. Pump Station 109 Dreadnaught Street AN/Missions Yes Permanent 100 Duplex 109 Stateside Elementary Pump Station 130 Stateside Blvd. AN/SCADA Yes Permanent 1000 Duplex 110 Maidstone Subdivision 307 Maidstone Drive AN/Missions Yes Permanent 215 Duplex 111 Winstead Place Pump Station 336 Winstead Loop AN/Ctrbox Yes Permanent 90 Duplex 112 Heritage Pump Station 312 Dillard Lane AN/SCADA Yes Permanent 500 Triplex Holly Ridge Area (ID 200-299) i 200 Belvedere Drive Pump Station 157 Belvedere Drive AN/Missions Yes Permanent 226 Duplex 201 Bream Street Pump Station 164 Bream Street AN/Ctrbox Yes Portable 30 Duplex 202 Cypress Street Pump Station 159 Cypress Street AN/Missions Yes Permanent 250 Duplex 203 Jenkins Street Pump Station 200 Jenkins Street AN/Missions Yes Permanent 530 Duplex 204 Trout Street Pump Station 197 Trout Street AN/Ctrbox Yes Portable 176 Duplex 205 Summerhouse # 1 Pump Station 344 Kings Creek Crossing AN/Missions Yes Permanent 130 lex206 Summerhouse # 2 Pump Station 319 Summerhouse Drive AN/Missions Yes Permanent 700 2D!uuplex i Holly Ridge Area (ID 200-299) - cont. Station ID Station Name Station Address Alarm Type (See Note 1) Pump Reliability Reliability Source (Generator) Capacity (GPM) I Type 207 Summerhouse # 3 Pump Station 608 Martin House Loop AN/Missions Yes Permanent 200 Duplex 208 Summerhouse # 4 Pump Station 523 White Picket Way AN/Missions Yes Permanent 485 Duplex 209 Summerhouse # 5 Pump Station 100 Night Heron Trace AN/Missions Yes Permanent 250 Duplex 210 Sage's Ridge Subdivision Pump Station 504 Hazelwood AN/Missions Yes Permanent 70 Duplex 211 The Reserves Pump Station 1101 E. Ocean Road AN/Ctrbox Yes Permanent 250 Duplex 212 Green Street Pump Station (future) TBD Swansboro Area (ID 300-399) 300 Bicentennial Park Pump Station 104 West Corbett Ave. AN/Ctrbox Yes Portable 70 Duplex 301 Casper's Marina Pump Station 223 Waters Street AN/Missions Yes Portable 340 Duplex 302 Swansboro Food Lion Pump Station 1409 West Corbett Ave. AN/Missions Yes Portable 70 Duplex 303 Hall's Creek Pump Station 1304 Hammocks Beach Road AN/Missions Yes Permanent 1100 Duplex 304 Hogan Road Pump Station 270 Hogan Road AN/Ctrbox Yes Permanent 180 Duplex 305 Ivy Manor Pump Station 1045 West Corbett Ave. AN/Ctrbox Yes Permanent 25 Duplex 306 Moore Street Pump Station 103 West Moore Street AN/Ctrbox Yes Portable 70 Duplex 307 Mt. Pleasant Road Pump Station 1226 Mt. Pleasant Road AN/Missions Yes Permanent 200 Duplex 308 Oster Bay Pump Station 111 Oyster Bay Road AN/Ctrbox Yes Permanent 80 Duplex 309 Phillips Pump Station 104 E. Corbett Ave. AN/Ctrbox Yes Portable 50 Duplex 310 Pirates Cove Pump Station 138 Queens Creek Road AN/Missions Yes Permanent 100 Du lex 311 River Reach #1 Pump Station 216 River Reach Drive AN/Ctrbox Yes Portable 37 Duplex 312 River Reach Main Pump Station 284 River Reach Drive AN/Missions Yes Permanent 200 Duplex 313 Shore Drive Pump Station Corner Shore Drive & Hwy 24 AN/Missions Yes Permanent 740 Duplex 314 Spring Street Pump Station Walnut Street AN/Ctrbox Yes Portable 37 Duplex 315 Swansboro High School Pump Station _312 161 Queens Creek Road AN/Ctrbox Yes Permanent 38 Duplex 316 Swansboro Library Pump Station 1460 West Corbett Ave. AN/Ctrbox Yes Portable 25 Duplex 317 Swansboro Middle School Pump Station 1240 West Corbett Ave. AN/Ctrbox Yes Permanent 180 Duplex 318 The Village at Swansboro Pump Station 900-1 Meadowbrook South AN/Missions Yes Permanent 150 Duplex 319 Swannsborou h Acres Pump Station 207A Channel Marker Loop AN/Missions Yes Permanent 250 Duplex 320 Charleston Park Pump Station 435 Patriots Point Lane AN/Missions Yes Permanent 176 Duplex 321 Queens Harbor Pump Station 501-1 HarborView Rd AN/Missions Yes Permanent 80 Duplex 322 Parrot Landing Pump Station 208 Toucan Way AN/Ctrbox Yes Permanent 112 Duplex 323 Watercrest Pump Station 503 Sail Boat Dr. AN/Missions Yes Permanent 130 Duplex 324 Excel Day Care Pump Station 178 Queens Creek Road AN/Missions Yes Permanent 45 Duplex 325 Shadow Creek Pump Station (future) TBD Piney Green Area (ID 400-499) Station ID Station Name Station Address Alarm Type (See Note 1) Pump Reliability Reliability Source (Generator) Capacity (GPM) Type 400 Firethorn Lane Pump Station 318-1 Firethorn Lane A/V/Missions Yes Portable 80 Duplex 401 Brand Mill Lane Pump Station 2000 West Brand Mill Lane AN/Missions Yes Permanent 300 Duplex 402 Towne Pointe Pump Station 1350 Rocky Run Road AN/Missions Yes Permanent 2000 Duplex 403 Hunters Creek Main Pump Station 134 Viking Place AN/Missions Yes Permanent 1000 Triplex 404 Piney Green Gate Pump Station 280 Freedom Way AN/Missions Yes Permanent 2700 Duplex 405 Liberty Pointe Pump Station 2010 Normandy Drive AN/Missions Yes Permanent 670 Duplex 406 Hidden Oaks Pump Station 304 Ashley Meadows Drive AN/Missions Yes Permanent 260 Du lex 407 Wantlands Pump Station 824 Tuscarora Trail AN/Missions Yes Permanent 360 Duplex 408 Webb Creek Pump Station North Carole Drive AN/Missions Yes Permanent 123 Duplex 409 Hickory Grove Pump Station 140 Easy Street AN/Missions Yes Permanent 260 Duplex 410 Boyin ton Place (future) TBD Note (1) A: Audible alarm V: Visual alarm Ctrbx: Landline hone -based alarm notification system. Missions: Cellular -based alarm notification system. i SCADA: Radio -based telemetry/control sstem Onslow Water and Sewer Authority (ONWASA) Onslow County, North Carolina Section IV.4 - High Priority Lines List 1) A six-inch diameter force main located approximately 500 LF from the Northwest WRF that originates from the Tri-Field Pump Station and consists of a horizontal directional drill under Squires Run. 2) An eight -inch diameter gravity sewer line from 7444 Richlands Hwy (the Richlands Primary School) that has approximately 1.5 LF of DIP exposed at a ditch crossing. 3) A twelve -inch diameter gravity sewer line located 50 LF from the head works to the Holly Ridge WWTP that has approximately 10 LF exposed at a ditch crossing. 4) An eight -inch diameter gravity sewer line located near the intersection of Jenkins Street and Hudiburg Streets in the town of Holly Ridge that has approximately 6 LF of PVC exposed at a ditch crossing (to be replaced by DIP in 2017). 5) Approximately 48,000 LF of twelve -inch diameter PVC/DIP/HDPE force main along Highway 58 from the Burton Industrial Park Pump Station to the Town of Richlands (designated high priority per Permit No. WQ0037017). Onslow Water and Sewer Authority (ONWASA) Onslow County, North Carolina Section VI.6 — Comprehensive Collection System Mapping Holly Ridge Sewer District: Approximately 20 miles of gravity sewer line, approximately 15 miles of force main and 13 duplex pump stations discharging to the Holly Ridge WWTP (WQ0019907) and the Summerhouse WWTP (WQ0029945). Northwest Sewer District: Approximately 15 miles of gravity sewer line, approximately 20 miles of force main and 15 duplex pump stations discharging to the Northwest Regional WRF (WQ0034367). Swansboro Sewer District: Approximately 24 miles of gravity sewer line, approximately 16 miles of force main and 26 duplex pump stations discharging to the Swansboro WWTP (WQ0023261). Piney Green Sewer District: Approximately 15 miles of gravity sewer line, approximately 20 miles of force main, and 10 pump stations discharging to the French Creek WWTP (NC0063029). Southwest Sewer District: Approximately 2 miles of gravity sewer line, approximately 10 miles of force main and 3 duplex pump stations, discharging to the Northwest Regional WRF (WQ0034367). In addition, approximately 6 miles of gravity sewer line, approximately 5 miles of force main and four duplex pump stations discharging to the City of Jacksonville WWTP/Land Treatment Site (WQ0009267). THIS DOCUMENT, IN ITS PRESENT FORM OR AS IT MAY BE REVISED BY ANY PARTY, WILL NOT BECOME A BINDING AGREEMENT OF ANY PARTY UNLESS AND UNTIL IT HAS BEEN SIGNED BY ALL PARTIES AND FULLY SIGNED COPIES HAVE BEEN EXCHANGED. THE EFFECT OF THIS LEGEND MAY NOT BE CHANGED BY ANY ACTION OF THE PARTIES. SYSTEMS PURCHASE AGREEMENT by and among PLURIS, LLC and PLURIS WEBB CREEK, LLC and ONSLOW WATER AND SEWER AUTHORITY RECEIVED OCT 19 2023 NCDEQ/DWP/NPDES 2 SYSTEMS PURCHASE AGREEMENT THIS SYSTEMS PURCHASE AGREEMENT is made and entered into as of , 2023 (the "Effective Date") by and between PLURIS WEBB CREEK, LLC, and PLURIS, LLC, validly existing limited liability companies under the laws of the State of North Carolina (collectively "Pluris"), and the ONSLOW WATER AND SEWER AUTHORITY, an authority created and validly existing under the laws of the State of North Carolina ("ONWASA"). Pluris and ONWASA are from time to time referred to herein individually as a "Party" and collectively as the "Parties". RECITALS WHEREAS, Pluris is engaged in providing sanitary sewer collection and utility services, serving residents and businesses in or near Hubert and Sneads Ferry, North Carolina (the "Systems"); and WHEREAS, as contemplated by that certain Memorandum of Intent between the Parties, Pluris desires to transfer all of the Systems Assets (as defined below) and ONWASA desires to acquire all of the Systems Assets; and WHEREAS, this Systems Purchase Agreement is authorized by N.C. Gen. Stat. § 162A- 6(a)(5); and WHEREAS, the governing bodies of Pluris and ONWASA have approved, and deem it advisable to consummate, the acquisition of the Systems Assets by ONWASA, upon the terms and subject to the conditions set forth herein. NOW, THEREFORE, in consideration of the premises, and the mutual promises, covenants and agreements contained herein, and for other good and valuable consideration, the receipt and legal sufficiency of which are hereby acknowledged, the Parties, intending to be legally bound, hereby agree as follows: ARTICLE 1 SALE OF ASSETS 1.1 Sale of Systems Assets. (a) Systems Assets. Upon the terms and subject to the conditions of this Agreement and in reliance upon the covenants, agreements, representations and warranties set forth in this Agreement, at the Closing, Pluris shall transfer to ONWASA, free and clear of any encumbrances other than Permitted Encumbrances, and ONWASA shall purchase from Pluris, all of Pluris' rights, title and interest in and to, the following assets (collectively, the "Systems Assets"): (i) The Real Property as set forth on Schedule 1.1(a)(i). (ii) All sewer lift station equipment, booster pump station equipment, and all trunk, collection and other pipes, drains and lines used or held for use by Pluris in connection with the Systems as set forth on Schedule 1.1(a)(ii). (iii) The equipment, machinery, furniture, computer hardware and software and related peripheral equipment and other tangible personal property set forth on Schedule 1.1(a)(iii); (iv) All supplies, tools, raw materials, parts, work in process and inventories used or held for use by Pluris in connection with the Systems as set forth on Schedule 1.1(a)(iv); (v) All Permits to the extent transferable as set forth on Schedule 1.1(a)(v); (vi) The Assumed Contracts, including any "Will Serve" letters, as set forth on Schedule 1.1(a)(vi); (vii) Originals, or where not available, copies, of all books and records relating to the Systems, including all accounting records, quality control records and procedures, customer lists, service and warranty records, equipment logs, operating guides and manuals, documents, data and other materials and information, in each case to the extent relating to the Systems; (viii) All prepaid expenses, advance payments, claims, refunds and Customer Deposits to the extent related to the Systems; (ix) All rights and claims under warranties, indemnities and similar rights against third parties to the extent related to any Systems Assets or Assumed Liabilities; (x) All equitable claims and rights, including all claims and rights arising under operation of Law, with respect to any and all Systems Assets; and (xi) All other assets and properties of every kind and nature, whether real, personal, or mixed, tangible or intangible, used or held for use exclusively in connection with the Systems Assets. (b) Excluded Assets. Notwithstanding Section 1.1(a) to the contrary, the "Systems Assets" shall specifically exclude these assets owned by Pluris, which will remain the property of Pluris after Closing: (i) All cash, cash equivalents, securities, bank, and other financial institution deposits and accounts, instruments, notes, and any other liquid or current assets (including Pluris Revenues but excluding ONWASA Revenues), other than items described in Section 1. 1 (a)(viii); (ii) All insurance policies and related rights; 4 (iii) All membership interests or other equities or rights; (iv) All personnel records, compliance books and records, and any other records that Pluris is required by applicable Law to keep in its possession; (v) Pluris' organizational documents and related records of member/manager/officer communications and tax return; and (vi) All of the assets listed on Schedule 1.1(b)(vi), which assets are owned by Pluris and not currently used for operation of the Systems. (c) Assumed Liabilities. ONWASA shall assume all liabilities and obligations of Pluris accruing or to be provided on and after the Closing Date under the Assumed Contracts as provided in the Assumption Agreement (collectively, the "Assumed Liabilities"). (d) Consideration for Systems Assets. Upon the terms and subject to the conditions of this Agreement, in consideration for the conveyance, assignment, sale, transfer and delivery by Pluris to ONWASA of the Systems Assets, ONWASA shall pay to Pluris at Closing, by wire transfer, the sum of thirty-seven and one-half million dollars ($37,500,000.00) for the Systems Assets at Sneads Ferry and eleven million dollars ($11,000,000.00) for the Systems Assets at Webb Creek in Hubert. At Closing, ONWASA shall be given credit for the two hundred thousand dollar deposit paid by ONWASA ("Deposit") and at Closing the amount paid to Pluris by ONWASA shall be forty-eight million three hundred thousand dollars ($48,300,000.00). The consideration to be paid by ONWASA to Pluris for the Systems Assets shall be allocated among the Systems Assets as provided in Schedule 1.1(d). (e) Contribution in aid of Construction. As of the Effective Date and until the time of Closing, Pluris will cease reserving additional sewer treatment capacity from either or both Systems, and shall cease collecting associated connection fees, also known as Contribution in Aid of Construction ("CIAC" or "System Development Fees"). During that interim period, Pluris may receive inquiries from property owners and/or developers seeking sewer service through the Systems. All such requests shall be forwarded to ONWASA for review and approval/denial prior to any action by Pluris. If such a request is approved by both Parties, a "Will Serve" letter will be jointly issued by the Parties and will require that property owners pay associated fees in the future to ONWASA in accordance with ONWASA's then -approved rates and charges following closing of the sale of the Systems to ONWASA. Such Will Serve letters shall be in form and substance reasonably satisfactory to ONWASA and Pluris. Pluris shall keep accurate information on such properties and make that information available to ONWASA monthly until Closing. Pluris shall also provide monthly 5 flow data showing average daily flow in gallons per day of treatment and remaining available capacity to ONWASA as part of its monthly reporting to the DEQ. At Closing, the permitted sewer treatment capacity at the Pluris plant in Sneads Ferry shall be no less than one million five hundred forty-two thousand six hundred thirty five gallons per day (1,542,635 gpd) and the permitted sewer treatment capacity at the Webb Creek plant in Hubert shall be no less than three hundred fifty thousand gallons per day (350,000 gpd). 1.2 Closing. Upon the terms and subject to the conditions of this Agreement, and provided that all of the conditions set forth in Article 5 (other than those conditions that by their terms cannot be satisfied until the Closing) have been satisfied or waived, the Closing shall take place at such time and date the Parties shall agree by the exchange of signed, copies of the Transaction Documents, including real estate documents no later than November 30, 2023 (the "Closing Deadline"). If all such conditions have not been satisfied or waived by the Closing Deadline, the Party not responsible for satisfying the outstanding condition shall have the option, in its sole discretion, of notifying the responsible Party of such in writing and either: (i) extending the Closing Deadline for so long as the responsible Party is diligently pursuing satisfaction of that condition; provided that the Closing Deadline shall not be extended over thirty (30) days without the written consent of both parties; (ii) waiving that condition and proceeding with Closing; or (iii) terminating this Agreement. The election of (i) above shall not prohibit a subsequent election of (ii) or (iii). The "Closing Date" means the date upon which the Closing actually occurs. For economic and accounting purposes, the Closing shall be deemed to take effect at 11:59 PM ET on the Closing Date. ARTICLE 2 REPRESENTATIONS AND WARRANTIES OF PLURIS Pluris represents and warrants to ONWASA as follows: 2.1 Organization of Pluris. Pluris Webb Creek, LLC, and Pluris, LLC are validly existing companies, existing as such under and by virtue of the Laws of the State. Pluris has all requisite power and authority to carry on the Systems as now being conducted and to own, use and hold for use the Systems Assets. 2.2 Authorization. The execution, delivery and performance by Pluris of each of the Transaction Documents to which it is or will be a party and the consummation by it of the Contemplated Transactions have been duly authorized by Pluris' Manager, and no other action on the part of Pluris is necessary to authorize the execution, delivery and performance by Pluris of such Transaction Documents or the consummation by it of the Contemplated Transactions. Pluris has duly executed and delivered this Agreement. 2.3 Consents and Approvals: No Violations. 6 (a) The execution, delivery and performance of the Transaction Documents to which Pluris is or will be a party, and the consummation by Pluris of the Contemplated Transactions, do not and will not, with or without notice or passage of time or both: (i) subject to the receipt of Regulatory Approvals as described in Section 2.3, after giving effect to all third party consents obtained by Pluris on or before Closing, result in a violation or breach of, or constitute a default (or give rise to any right of termination, amendment or acceleration) under, or require any consent, approval or waiver under, any Assumed Contract or, any other agreement, contract or instrument to which Pluris is a party to the extent such violation or default would prevent the consummation of the Contemplated Transactions or otherwise materially interfere with ONWASA's use of the Systems Assets or the (ii) subject to the receipt of Regulatory Approvals as described in Section 2.3, violate any Order applicable to Pluris, the Systems or any of the Systems Assets, or (iii) result in the creation or imposition of any Encumbrance on any Systems Assets. (b) The Transaction Documents including the permits listed in paragraph 2.10 to operate the Systems require the approval of the North Carolina Department of Environmental Quality ("DEQ") for the transfer to ONWASA. (c) This Agreement together with its Schedules, and the transfer of the Systems as contemplated by this Agreement, requires the approval of the North Carolina Utilities Commission ("NCUC"). Pluris' obligation to close the transaction that is the subject of this Agreement is contingent upon Pluris receiving an Order from the NCUC approving the transfer of the Systems to ONWASA which is satisfactory in form and substance to Pluris, in its sole discretion. Pluris shall make this determination within ten business days of the issuance of the Order from NCUC, and provide notice of its decision to ONWASA. 2.4 Financial Statements. To the Knowledge of Pluris, the financial statements described on Schedule 2.4 (collectively, the "Financial Statements") fairly present in all material respects the financial condition and the results of operations and cash flows of Pluris related to the Systems as at the respective dates of and for the periods referred to in the Financial Statements, all in accordance with generally accepted accounting principles. The Financial Statements reflect the consistent application of such accounting principles throughout the periods involved, except as disclosed in the notes to such Financial Statements. The Financial Statements have been prepared from and are in accordance with the accounting records of Pluris. There are no outstanding claims, liabilities, obligations or indebtedness in connection with the Systems of any kind or nature, whether fixed or contingent, except as set forth in the Financial Statements, and except for liabilities incurred in the Ordinary Course of Business since the date of the Financial Statements and of the kind and type reflected in the Financial Statements which are not, individually or in the aggregate, material in amount. 2.5 Title. Pluris has (and at the Closing Pluris will transfer to ONWASA) good and valid title to all the Systems Assets free and clear of all Encumbrances other than Permitted Encumbrances. 2.6 Tax Matters. All Tax Returns required to be filed by or on behalf of Pluris in connection with the Systems have been timely filed, and such Tax Returns are accurate and complete in all material respects. All Taxes due and payable by Pluris in connection with the Systems have been paid in full on a timely basis, and no other material Taxes (whether or not shown on or reportable on such Tax Returns) are payable by Pluris in connection with the Systems. Pluris has withheld all amounts required to be withheld or collected in connection with any amount paid or owing to any employee, independent contractor, creditor, shareholder or other Person in connection with the Systems, has remitted such amounts to the appropriate taxing authorities in accordance with applicable Laws and has complied with all information reporting and backup withholding requirements, including maintenance of required records, with respect thereto. There are no Encumbrances on any of the purchased Systems Assets with respect to Taxes, other than Encumbrances for Taxes not yet due and payable. No federal, state or local audits, examinations, investigations or other Actions are pending with regard to any Taxes or Tax Returns of Pluris in connection with the Systems. Pluris is not a party to any Action for assessment or collection of Taxes in connection with the Systems, nor has any such Action been asserted or, to Pluris' Knowledge, threatened. Pluris is not a United States real property holding corporation within the meaning of Section 897(c)(2) of the Code during the applicable period specified in Section 897(c)(1)(A)(ii) of the Code, and ONWASA is not required to withhold Tax in connection with the Closing by reason of Section 1445 of the Code. 2.7 Absence of Certain Changes. Since February 21, 2023, Pluris has operated the Systems only in the Ordinary Course of Business consistent with past practice. Without limiting the generality of the foregoing, Pluris has not since February 21, 2023: (a) permitted or allowed any of the Systems Assets to be subjected to any Encumbrances of any kind other than Permitted Encumbrances; (b) sold, transferred, leased or otherwise disposed of any of the Systems Assets or any other properties or assets (real, personal or mixed, tangible or intangible) used or held for use in connection with the Systems, except in the Ordinary Course of Business, consistent with past practice; (c) entered into any contract or agreement in connection with the Systems outside the Ordinary Course of Business; (d) amended, modified or terminated, or waived any right or claim under, any Assumed Contract; (e) except for agreements with property owners or developers entered into as provided for in Section 1.1(e), entered into any contract or agreement in connection with the Systems that provides for payments to or from Pluris in excess of $25,000 and is not terminable in thirty (30) days or less without penalty; (f) failed to maintain the purchased Systems Assets in good operating condition and repair, subject to ordinary wear and tear; (g) experienced any material damage, destruction or loss (whether or not covered by insurance) to the Systems Assets incurred or assumed any liabilities in connection with the Systems, or paid, discharged, waived or released any liabilities or obligations of the Systems, in each case except in the Ordinary Course of Business; (h) changed its cash management practices and policies or its practices and procedures with respect to the collection of customer accounts receivable, in each case with respect to the Systems; or (i) agreed, whether in writing or otherwise, to take any action described in this Section 2.7. 2.8 Customers. (a) Maps. Schedule 2.8(a) contains maps which set forth the location of all of Pluris' known distribution, trunk, collection and other pipes, drains and lines used or held for use in connection with the Systems. Pluris does not provide Systems services to any Person other than those customers set forth on the Customer Lists to be provided in accordance with Section 4.9. (b) Upon the consummation of the Contemplated Transactions, all Pluris customers will become ONWASA customers and Pluris relinquishes all claims or rights to provide utility services in Pluris' existing service areas served by the Systems in Onslow County. (c) Customer Deposits List. Schedule 2.8(b) contains an accurate and complete list (the "Customer Deposits List") of all lots and units from which Pluris has collected and currently retains Customer Deposits, including a description of the fee or deposit, the account name and number, and the amount and date paid. 2.9 Real Property. (a) Real Property - Generally. (i) As used herein, "Real Property" means all real property, including all land described on Schedule 1.1(a)(i), all Easements, in which Pluris has any right, title or interest and which is used or held for use in connection with the Systems, together with the use of all buildings, structures, improvements and fixtures located thereon or attached or appurtenant thereto. The Owned Real Property, the Easements and all real property listed on Schedule 1.1(a)(i) are included in the "Real Property." (ii) Within five business days after the Effective Date, Pluris shall deliver to ONWASA true and complete copies of all deeds, title insurance policies and surveys relating to the Real Property, including all documents evidencing Encumbrances upon the Real Property, 9 that are in Pluris' records or control. Other than the Permitted Encumbrances, there are no Encumbrances or disputes or conditions affecting any Real Property that might curtail or interfere with the use of such property by ONWASA, and there are no pending or to Pluris' Knowledge threatened Actions, or outstanding Orders, relating to any Real Property, including Pluris' use of the Real Property. (b) Owned Real Property. As used herein, "Owned Real Property" means every parcel of Real Property owned in fee simple by Pluris and used solely in connection with the operation of the Systems, including the Lagoon. Schedule 1.1(a)(i) sets forth each parcel of Owned Real Property, including with respect to each parcel, the address location and use. With respect to each parcel of Owned Real Property, (i) Pluris has not leased or otherwise granted to any Person the right to use or occupy such parcel of Owned Real Property or any portion thereof; and (ii) to the Knowledge of Pluris, there are no unrecorded outstanding options, rights of first offer or rights of first refusal to purchase such parcel of Owned Real Property or any portion thereof or interest therein. (c) Easement & Rights of Way. (i) Set forth on Schedule 1.1(a)(i) is a list of certain easements, rights of way, rights, privileges and appurtenances, including proofs of dedication, in which Pluris has any right, title or interest and which are used or held solely for use by Pluris in connection with the Systems. (ii) Pluris may not have all Required Easements, each duly executed and recorded. To the Knowledge of Pluris, any failure by Pluris to have all such duly executed and recorded Required Easements would not have a material adverse effect on the operation of the Systems, except as otherwise set forth on Schedule 2.9(c)(ii). (iii) To the Knowledge of Pluris, (A) Pluris and its Systems operations are in compliance with all Easements and (B) no event has occurred or circumstance exists that may (with or without notice, the passage of time or both) constitute or result directly or indirectly in a violation of or a failure to comply with any term of, or result directly or indirectly in the revocation, withdrawal, suspension or termination of, or any modification to, any such Easement. 0) Leased Property. Pluris does not lease or license any real property in connection with its operation of the Systems. Pluris is not a party to any lease, assignment or similar arrangement under which Pluris is a lessor, assignor or otherwise makes available for use by any third party any portion of the Real Property. 2.10 Permits. All Permits required for Pluris to own and operate the Systems and the Systems Assets as currently conducted have been obtained by Pluris, are valid and in full force and effect and are set forth on Schedule 2.10. True and complete copies of all such Permits have heretofore been, or will be prior to Closing, furnished to ONWASA. Pluris is in substantial compliance with all such Permits. No event has occurred or circumstance exists that may (with 10 or without notice, the passage of time or both) (a) constitute or result directly or indirectly in a violation of or a failure to comply with any term or requirement of any such Permit except where failing to comply would not have a material adverse effect on the Systems Assets or Pluris or (b) result directly or indirectly in the revocation, withdrawal, suspension or termination of, or any modification to, any such Permit. 2.11 Plant, Equipment, and Inventory. (a) Sufficiency of Assets. The Systems Assets, including the Lagoon, are sufficient for the continued operation of the Systems after the Closing in substantially the same manner as conducted by Pluris prior to the Closing and constitute all of the rights, properties and assets necessary to operate the Systems as currently operated. (b) Condition of Assets. The buildings, structures, improvements, fixtures located on or attached or appurtenant to the Owned Real Property, and all other equipment, machinery, furniture, fixtures, tanks, structures, computer hardware and other tangible personal property included in the Systems Assets, are structurally sound, in good operating condition and repair, are adequate for the uses to which they are being put and are not in need of maintenance or repairs except for ordinary, routine maintenance and repairs which are not material in nature or cost. Pluris has operated and maintained the Systems Assets in accordance with established operating practices. Pluris has a valid license and right to use all software installed in or used in connection with any personal computer or other computing device included in the Systems Assets and has the right to assign such license and right to ONWASA in accordance with this Agreement. 2.12 Environmental Matters. (a) Compliance. To the best of Pluris' Knowledge, Pluris is in full compliance with all Environmental Laws relating to the Systems, including the possession by Pluris of all Permits required under all applicable Environmental Laws and compliance with the terms and conditions thereof. Each Permit currently held by Pluris relating to the Systems pursuant to the Environmental Laws is identified in Schedule 2.10. (b) Notice of Violation. Since February 21, 2023, Pluris has not received any communication (written or oral), whether from a Governmental Authority, citizens group, employee or otherwise, that states, claims or alleges that Pluris is not in full compliance with any Environmental Laws relating to the Systems, and, to the best of Pluris' Knowledge, there are no circumstances that may prevent or interfere with such full compliance in the future. Pluris shall deliver to ONWASA within five business days after the Effective Date all information that is in the possession of or reasonably available to Pluris regarding Environmental Claims, and environmental matters pertaining to, or the environmental condition of, the Systems or the compliance (or non-compliance) by Pluris with any Environmental Laws relating to the Systems. 11 (c) Pending Claims. There is no Environmental Claim by any Person that is pending or, to Pluris' Knowledge, threatened against the Systems, or against any Person whose liability for any Environmental Claim Pluris has retained or assumed either contractually or by operation of law relating to the Systems. There has been no past Environmental Claim by any Person against Pluris related to the Systems. (d) Hazardous Materials. To the best of Pluris' Knowledge, there are no past or present actions, activities, circumstances, conditions, events or incidents, including the release, threatened release, emission, discharge, presence or disposal of any Hazardous Materials, that could form the basis of any Environmental Claim against Pluris relating to the Systems or, to the Knowledge of Pluris, against any Person whose liability for any Environmental Claim relating to the Systems Pluris has retained or assumed either contractually or by operation of law. (e) Hazardous Conditions. Without in any way limiting the generality of the foregoing, to the best of Pluris' Knowledge, (i) all Owned Real Property locations where Pluris has (previously or currently) stored, disposed of or arranged for the disposal of Hazardous Materials relating to the Systems are identified in Schedule 2.12(e)(i), (ii) all underground storage tanks, and the capacity and contents of such tanks, located on any property owned, leased, operated or controlled to be transferred by Pluris pursuant to this Agreement relating to the Systems are specifically identified in Schedule 2.12(e)(ii), (iii) there is no asbestos contained in or forming part of any building, building component, structure or office space owned, leased, operated or controlled by Pluris used or held for use in the Systems, and (iv) no PCBs or PCB - containing items are or ever have been used or stored at any property owned, leased, operated or controlled by Pluris used or held for use in the Systems. 2.13 Contracts. (a) Pluris nor, to Pluris' Knowledge, any other party thereto is in breach of or default under (or is alleged to be in breach of or default under), or has provided or received any notice of any intention to terminate, any Assumed Contract. To Pluris' Knowledge, no event or circumstance has occurred that, with notice or the passage of time or both, would constitute an event of default under any Assumed Contract or result in a termination thereof or would cause or permit the acceleration or other changes of any right or obligation or the loss of any benefit thereunder. Complete and correct copies of each Assumed Contract (including all modifications, amendments and supplements thereto and waivers thereunder) have been, or will be prior to Closing, delivered to ONWASA. There are no disputes pending or threatened under any Assumed Contract. (b) Except for any contracts and agreements with or for the benefit of Pluris employees (none of which will be assumed by ONWASA), and except for the Assumed Contracts, there are no other contracts or agreements (i) by which any of the Systems Assets are bound or affected or (ii) to which Pluris is a party or by which it is bound in connection with the Systems or the Systems Assets. 12 2.14 Insurance. Schedule 2.14 sets forth a true and complete list and description of all insurance policies maintained by Pluris with respect to the Systems Assets (collectively, the "Policies") and sets forth a list of all pending claims and the claims history for Pluris under the Policies since February 21, 2023. There are no claims related to the Systems or the Systems Assets pending under any Policies as to which coverage has been questioned, denied or disputed or in respect of which there is an outstanding reservation of rights. All Policies are in full force and effect, all premiums due thereon have been paid by Pluris, and Pluris is otherwise in compliance with the terms of the Policies. Pluris has received no notice of cancellation or non - renewal of any Policy nor is the termination of any Policy threatened. Pluris has not received any notice from any insurance company that has issued a Policy, requiring or recommending any repairs or work to be done on any part of the Systems Assets, other than repairs or other work that has been completed. 2.15 Liti ag tion. There is no Action pending or threatened relating to or involving the Systems or the Systems Assets or which challenges or seeks to restrain, enjoin or otherwise prohibit the consummation of the Contemplated Transactions, and, to the Knowledge of Pluris, there is no valid basis for any such Action. Other than Orders issued by the NCUC authorizing Pluris to provide service, setting rates, etc., there are no outstanding Orders relating to or involving the Systems or the Systems Assets. The operation of the Systems does not infringe upon, misappropriate or otherwise violate the patents, trademarks, trade names, copyrights, trade secrets or other intellectual property rights of any other Person. 2.16 Compliance with Laws. Except as set forth on Schedule 2.16, Pluris has complied in all material respects with all applicable Laws with respect to the Systems since February 21, 2020. Since February 21, 2023, Pluris has not received any notice that it is in violation of any applicable building, zoning, health or other Law in respect of the Systems or the Systems Assets. 2.17 Brokers or Finders. To the extent either Party has utilized or will utilize an agent, broker, banker, advisor, consultant or other Person on its behalf in connection with the Contemplated Transaction, that Party shall be responsible for any fee or any other commission or similar fee due such Person in connection with any of the Contemplated Transactions. 2.18 Full Disclosure. , no representation or warranty by Pluris contained in this Agreement or any other Transaction Document contains or will contain any untrue statement of material fact or omits or will omit to state any material fact necessary to make the statements herein or therein, in light of the circumstances under which they were made, not misleading. 2.19 No Other Representations or Warranties. Except for the representations and warranties contained in this Agreement, the other Transaction Documents, and the Other Contracts, Pluris does not make any other express or implied representation or warranty, either written or oral. ARTICLE 3 REPRESENTATIONS AND WARRANTIES OF ONWASA 13 ONWASA represents and warrants to Pluris that: 3.1 Organization. ONWASA is an authority created and validly existing under the Laws of the State of North Carolina. ONWASA has all requisite power and authority to carry on its business as now being conducted and to own, use and hold for use the assets used in its business. 3.2 Authorization; Validity of Agreement. ONWASA has all requisite power and authority to execute and deliver all Transaction Documents to which it is or will be a party, to perform its obligations thereunder and to consummate the Contemplated Transactions. The execution, delivery and performance by ONWASA of each of the Transaction Documents to which it is or will be a party and the consummation by it of the Contemplated Transactions have been duly authorized by ONWASA's Board of Directors, and no other action on the part of ONWASA is necessary to authorize the execution, delivery and performance by ONWASA of such Transaction Documents or the consummation by it of the Contemplated Transactions. ONWASA has duly executed and delivered this Agreement. This Agreement constitutes, together with the other Transaction Documents to which ONWASA is or will be a party will constitute (upon execution and delivery by ONWASA and the other parties thereto), the legal, valid and binding obligation of ONWASA, enforceable against ONWASA in accordance with its terms, except as enforcement thereof may be limited by bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the enforcement of creditors' rights generally and by general equitable principles. 3.3 Consents and Approvals: No Violations. This Agreement is subject to approval by DEQ, the North Carolina Local Government Commission, and the NCUC. The approval by the Local Government Commission includes both this document and the issuance of revenue bonds for the Cash Payment. The transfer of the Systems by Pluris is subject to approval by the NCUC on terms satisfactory to Pluris, as set forth in Section 2.3(c). Except for the foregoing approvals, the execution, delivery and performance of the Transaction Documents to which ONWASA is or will be a party, and the consummation by ONWASA of the Contemplated Transactions, do not and will not, with or without notice or passage of time or both; (a) require any filing with, or permit, authorization, consent or approval of, any Governmental Authority or any other Person, (b) result in a violation or breach of, or constitute a default (or give rise to any right of termination, amendment or acceleration) under, or require any consent, approval or waiver under, any agreement, contract or instrument to which ONWASA is a party, or (c) violate any Order or Law applicable to ONWASA. 3.4 Brokers or Finders. To the extent either Party has utilized or will utilize an agent, broker, banker, advisor, consultant or other Person on its behalf in connection with the Contemplated Transaction, that Party shall be responsible for any fee or any other commission or similar fee due such Person in connection with any of the Contemplated Transactions. 14 ARTICLE 4 COVENANTS 4.1 Interim Systems Operations. Except as required by this Agreement, prior to Closing, Pluris shall operate the Systems in the Ordinary Course of Business. 4.2 Access. Prior to Closing, Pluris shall afford ONWASA and its representatives reasonable access to all facilities of Pluris used or held for use in connection with the Systems and permit ONWASA to make such inspections as it may reasonably require. In addition, Pluris shall furnish ONWASA with such operating data, books, records and other information relating to the Systems as ONWASA may from time to time reasonably request. ONWASA and its representatives may, with reasonable prior notice and without unreasonably interfering with Pluris' operations, at ONWASA's sole expense, conduct such diligence and investigations of the Systems as ONWASA deems reasonably necessary or appropriate, including (a) conducting one or more surveys of certain parcels of the Owned Real Property and of all tracts subject to any new easements, (b) performing water system sampling, (c) performing soil, surface and ground water sampling, monitoring, borings and testing and any other tests, investigations, audits, assessments, studies, inspections or other procedures relating to environmental conditions or Hazardous Materials and (d) conducting financial analyses with respect to the Systems or Systems Assets. Pluris shall cooperate with ONWASA and its representatives in conducting such diligence and investigations (collectively, the "Tests"). ONWASA shall give reasonable written or telephonic advance notice to Pluris of any Tests it or its agents will perform. This notice shall specify the nature of the Tests to be performed, the approximate time the Tests will be performed, and the entity performing the Tests. ONWASA shall not be liable for the removal of or damage to any small trees or other vegetation which may reasonably occur in connection with the Tests. ONWASA shall otherwise repair any damage to the Real Property to materially the same condition as prior to such Tests caused by its exercise of the rights granted under this Section. This obligation shall survive any termination of this Agreement. ONWASA and its representatives agree to keep the results of such access, diligence, and investigations, and all materials delivered by Pluris to ONWASA, confidential in accordance with that "Confidentiality Agreement" dated October 4, 2022 between the Parties (the "Confidentiality Agreement"). 4.3 Pre -Closing Actions. (a) Efforts to Close. Prior to Closing, upon the terms and subject to the conditions of this Agreement, ONWASA and Pluris shall use their respective reasonable best efforts to take, or cause to be taken, all actions, and to do, or cause to be done and cooperate with each other in order to do, all things necessary, proper or advisable to consummate the Contemplated Transactions promptly, including the preparation and filing of all forms, documents, filings and notices required to be filed to consummate the Contemplated Transactions and the taking of such actions as are necessary to obtain any approvals, authorizations, consents, or waivers of any third party or Governmental Authority. 15 (b) Material Adverse Change. Prior to the earlier of Closing and a termination of this Agreement, Pluris shall promptly notify ONWASA in writing of any fact, circumstance, event or action the existence or occurrence of which (i) has had, or could reasonably be expected to result in, individually or in the aggregate, with or without the passage of time, a material adverse change in the business, condition (financial or otherwise), assets or results of operations of the Systems, taken as a whole, or (ii) has resulted in, or could reasonably be expected to result in, any representation or warranty made by Pluris hereunder nct being: (x) for those representations and warranties qualified by materiality, material adverse effect, or similar qualification, true and correct in all respects as of the Closing Date; and (y) for all other representations and warranties, true and correct in all material respects as of the Closing Date; or the failure of any of the conditions set forth in Section 5.2 to be satisfied on or before the Closing Date. In addition, Pluris shall promptly notify ONWASA of any Action commenced or threatened against or relating to the Systems, the Systems Assets, or the consummation of the Contemplated Transactions. (b) Material Adverse Change. Prior to the earlier of the Closing and the termination of this Agreement, ONWASA shall promptly notify Pluris in writing of any fact, circumstance, event or action the existence or occurrence of which (i) has had, or could reasonably be expected to result in, individually or in the aggregate, with or without the passage of time, a material adverse change in the business, condition (financial or otherwise), assets or results of operations of ONWASA, or (ii) has resulted in, or could reasonably be expected to result in, any representation or warranty made by ONWASA hereunder not being: (x) for those representations and warranties qualified by materiality, material adverse effect, or similar qualification, true and correct in all respects as of the Closing Date; and (y) for all other representations and warranties, true and correct in all material respects as of the Closing Date; or the failure of any of the conditions set forth in Section 5.3 to be satisfied on or before the Closing Date. In addition, ONWASA shall promptly notify Pluris of any Action commenced or, threatened against or relating to the consummation of the Contemplated Transactions. (c) Acquisition Proposals. Prior to the earlier of Closing and a termination of this Agreement, Pluris shall not, directly or indirectly, accept, solicit, initiate or facilitate any Acquisition Proposal relating to the Systems or discuss or negotiate with, or provide any information to, any Person concerning a possible acquisition of the Systems Assets and Owned Real Property (an "Acquisition Proposal'). If Pluris receives an Acquisition Proposal, Pluris shall promptly provide written notice thereof to ONWASA, inform the Person making the Acquisition Proposal that it is subject to the provisions of this Section 4.3(d), and thereafter have no further contact with such Person regarding the Acquisition Proposal. 4.4 Closing Deliverables. At Closing, and upon the terms and subject to the conditions contained herein: (a) Pluris Deliveries. Pluris shall deliver or cause to be delivered to ONWASA the following: 16 (i) a bill of sale in the form attached as Exhibit A, executed by Pluris; (ii) a special warranty deed in recordable form with respect to the Real Property in the form of Exhibit B attached hereto, executed by Pluris; (iii) a certificate pursuant to Treasury Regulations Section 1.1445-2(b) that Pluris is not a foreign person within the meaning of Section 1445 of the Code, executed by Pluris; (iv) an assignment and assumption agreement (the "Assumption Agreement"), in the form attached hereto as Exhibit C, with respect to all Assumed Contracts, executed by Pluris; (v) a certificate, certifying: (A) as complete and accurate all requisite resolutions or actions of Pluris' Manager approving the execution and delivery of each of the Transaction Documents and the consummation of the Contemplated Transactions and (B) the incumbency and signatures of the Manager and any other officers of Pluris executing this Agreement and the other Transaction Documents executed by Pluris' Manager and such other officers; (vi) all other assignments and other instruments as are necessary, or reasonably requested by ONWASA, to vest in ONWASA title to the Systems Assets, executed by Pluris; (vii) an opinion of Pluris' counsel that (a) all Transaction Documents have been authorized, executed and delivered by Pluris and constitute valid, binding and enforceable obligations of Pluris, (b) Pluris has taken all corporate action required to carry out the Contemplated Transactions, (c) Pluris has obtained all regulatory approvals required to carry out the Contemplated Transactions as set forth in the Transaction Documents, (d) the Contemplated Transactions and their consummation will not violate any order, decree, law or administrative regulation to which Pluris is subject, and (e) no litigation is pending or, to counsel's knowledge, overtly threatened in writing, that would prevent Pluris from carrying out its obligations under the Transaction Documents; and (viii) such other documents or instruments as are necessary to consummate the Contemplated Transactions. (b) ONWASA Deliveries. ONWASA shall deliver or cause to be delivered to Pluris the following: (i) the Assumption Agreement, executed by ONWASA; (ii) a certificate, certifying: (A) as complete and accurate all requisite resolutions or actions of ONWASA's Board of Directors approving the execution and delivery of each of the Transaction Documents and the consummation of the Contemplated Transactions and (B) the 17 incumbency and signatures of ONWASA's Chairman and other officers of ONWASA executing this Agreement and the other Transaction Documents executed by ONWASA's Chairman and such other officers; (iii) a cash payment (the "Cash Payment") in an aggregate amount of forty-eight million three hundred thousand dollars ($48,300,000.00), by wire transfer of immediately available funds to an account designated by Pluris in writing; and (iv) such other documents or instruments as are necessary, or reasonably requested by Pluris, to consummate the Contemplated Transactions. 4.5 Property Tax. All local property taxes on the Systems Assets shall be paid at or before Closing by Pluris. There shall be no proration of the property taxes between the parties on a calendar year basis as of the Closing Date. Such property taxes are and shall be the responsibility of Pluris. If paid at Closing, the property taxes shall be deducted from the consideration otherwise to be received by Pluris for the Systems Assets under Section 1.1(d). 4.6 Public Announcement. After the Closing, the Parties shall prepare and issue a joint public announcement with respect to the Contemplated Transactions, the form and content of which shall be mutually agreed by the Parties. 4.7 Employee Matters. The Parties acknowledge that, following the Closing, ONWASA agrees to interview and consider employment of the Operators in Responsible Charge of the Systems as well as other Pluris personnel that ONWASA may deem necessary. ONWASA is under no obligation to hire such individuals. Pluris has made ONWASA aware of those employees that Pluris intends to retain, and ONWASA agrees to neither interview nor offer employment to those Pluris employees within six months of Closing. Accordingly, Pluris shall be solely responsible and liable for the following obligations and liabilities (collectively, the "Employee Liabilities"): (a) all compensation and other amounts payable to any current or former employee, officer, independent contractor or consultant of Pluris, including wages, hourly pay, commission, bonus, salary, accrued vacation, fringe, pension and profit sharing benefits, severance and retention pay, reimbursement payments and any other employee benefits for any period relating to service with Pluris at any time (whether prior to or after the Closing); (b) the satisfaction of all claims for medical, dental, life insurance, health accident or disability benefits brought by or in respect of current or former employees, officers, independent contractors or consultants of Pluris or the spouses, dependents or beneficiaries thereof (whether such claims relate to events occurring on or after the Closing); and (c) all indemnity obligations owed to, reimbursement payments payable to, and all worker's compensation claims of, any current or former employee, officer, independent contractor or consultant of Pluris (whether relating to events occurring prior to or after the Closing). 4.8 Post -Closing Matters. (a) Delivery of Systems Assets. Simultaneously with the Closing, the Parties shall 18 execute and deliver all deeds, bills of sale, instruments of conveyance, assignments and other documents and take and do all such other actions and things as necessary, or reasonably requested by ONWASA, to assign and transfer to ONWASA all of Pluris' rights, title and interest in and to the Systems Assets. Furthermore, each Party will cooperate with the other Party and execute and deliver to the other Party such other instruments and documents and take such other actions as may be reasonably requested from time to time by the other Party as necessary or advisable to carry out the purposes of this Agreement and to properly transition the Systems to ONWASA. (b) Post -Closing Possession. ONWASA agrees to grant to Pluris a period of three (3) months post -closing to vacate the office building at the site of the Pluris, LLC Sneads Ferry Plant, during such time no rent shall be charged to Pluris. Pluris shall be responsible for any/all utilities and building maintenance during this time. This period may be shortened at the discretion of Pluris upon written notice to ONWASA. (c) Mail and Records. After the Closing, Pluris shall forward and deliver to ONWASA all mail, notices and other correspondence received by Pluris relating to the Systems or the Systems Assets. After the Closing, during normal business hours and subject to the Confidentiality Agreement, Pluris will permit ONWASA's representatives to have reasonable access to and examine any books and records of Pluris relating to the Systems that are not delivered to ONWASA pursuant to this Agreement. Pluris agrees not to destroy any such books and records except in accordance with applicable Law and its internal document retention policies. (d) Cooperation. After the Closing, Pluris shall cooperate with ONWASA as reasonably requested in order to facilitate the transition of the Systems to ONWASA. To the extent that Pluris' rights under any Assumed Contract, or any other Systems Assets, may not be assigned to ONWASA without the consent of another Person which has not been obtained, this Agreement shall not constitute an agreement to assign the same if an attempted assignment would constitute a breach thereof or be unlawful. 4.9 Customer List, Deposits, and Payments. (a) Customer List. At least sixty (60) days prior to the Closing, Pluris shall provide ONWASA with a complete and accurate list in all material respects (the "Customer List") of the following information with respect to each Systems' customer, including all active Systems' accounts (collectively, the "Customer Information"): name; address; account number; the date and amount of the most recent invoice issued to such customer (whether or not such invoice has been paid); the meter reading applicable to such recent invoice; the date and amount of all other outstanding invoices due from such customer; the most recent meter reading (and date thereof); and, to the extent available, email address and phone number. (b) Customer Deposits. Pluris shall transfer Customer Deposits held by it as of Closing to ONWASA. Within ten (10) business days after the Closing, Pluris shall provide to 19 ONWASA an updated Customer List with respect to each Systems customer as of the Closing, and such updated Customer List shall reflect the amount of all Customer Deposits held by Pluris as of Closing. (c) Customer Invoicing. After the Closing, ONWASA shall issue all invoices to Systems customers for Systems services. Pluris shall be entitled to all amounts due from Systeuis customers for Systems services with respect to periods ending on or before the Closing Date (collectively, the "Pluris Revenues"). ONWASA shall be entitled to all amounts due from Systems customers for Systems services with respect to all periods after the Closing Date (collectively, the "ONWASA Revenues"). With respect to any payment received from a Systems customer for Systems services for a period which begins on or before the Closing Date and ends after the Closing Date, the payment shall be prorated on a per diem basis for such period using the pre -Closing meter reading provided by Pluris and the post -Closing meter reading by ONWASA and apportioned between the Parties as contemplated above in this Section 4.9(c). After the Closing, if a Party receives any amount to which the other Party is entitled under this Section 4.9, the receiving Party shall remit such amount to such other Party within thirty (30) days of receipt. (d) New Lines. Prior to the Closing, Pluris shall continue to install lines and facilities in accordance with its existing standards and specifications as necessary to provide Systems services, comply with existing development agreements, or comply with applicable Laws, which may include the installation or construction of any mains, collection lines, pipes, lift stations; or other facilities. Pluris will provide a quarterly update to ONWASA describing any such new facilities installed or constructed after the Effective Date and prior to Closing. ARTICLE 5 CONDITIONS TO CLOSING 5.1 Conditions to the Obligations of All Parties. The obligation of each Party to consummate the Contemplated Transactions is subject to the fulfillment or satisfaction, on or prior to the Closing Date, of each of the following conditions: (a) Government Action. No Governmental Authority (other than the Parties) shall have issued or entered any Order or taken any other action, which has not been rescinded and which has the effect of making the Contemplated Transactions illegal or otherwise restrains, enjoins or otherwise prohibits the consummation of the Contemplated Transactions. (b) Consents. All consents, authorizations and approvals of any Governmental Authority (other than the Parties) (collectively "Regulatory Approvals") required to be obtained before consummation of the Contemplated Transactions shall have been obtained. 5.2 Conditions to Obligation of ONWASA to Effect the Closing. The obligation of ONWASA to consummate the Contemplated Transactions is subject to the fulfillment or 20 satisfaction, on or prior to the Closing Date, of each of the following conditions: (a) Representations and Warranties. All of the representations and warranties of Pluris set forth in this Agreement that are qualified as to materiality shall be true and correct and all such representations and warranties that are not so qualified shall be true and correct in all material respects, in each case as of the date of this Agreement and as of the Closing Date. (b) Pluris Covenants. Pluris shall have in all material respects performed and complied with the obligations and covenants required by this Agreement to be performed or complied with by Pluris on or prior to the Closing Date. (c) Closing Deliveries. Pluris shall have delivered, and duly executed where appropriate, to ONWASA each of the items set forth in Section 4.4(a). (d) Litigation. There shall not have been commenced or threatened against ONWASA any Action by any third party (i) involving any challenge to, or seeking damages or other relief in connection with, Pluris' ability to perform any of the Contemplated Transactions or (ii) that may have the effect of preventing, delaying, making illegal, imposing limitations or conditions on or otherwise interfering with Pluris' ability to perform any of the Contemplated Transactions. (e) Releases. Pluris shall have obtained releases of, or shall otherwise have made provision satisfactory to the ONWASA for the release of, all Encumbrances upon the Systems Assets other than Permitted Encumbrances. (f) Third Party Consents. All consents, authorizations and approvals of any third party required to be obtained before consummation of the Contemplated Transactions (including those consents and approvals listed in Sections 2.3 and 3.3) shall have been obtained. (g) Revenue bonds have been issued by ONWASA to secure the payment of the Cash Payment. (h) Material Adverse Change. There shall not have occurred any material adverse change (or any event or events that, individually or in the aggregate, with or without the passage of time, could reasonably be expected to result in a material adverse change) in the business, condition (financial or otherwise), assets or results of operations of the Systems, taken as a whole. The foregoing conditions are for the sole benefit of ONWASA and may be waived by ONWASA, in whole or in part, at any time in the sole discretion of ONWASA. 5.3 Conditions to Obligation of Pluris to Effect the Closing, The obligation of Pluris to consummate the Contemplated Transactions is subject to the fulfillment or satisfaction, on or prior to the Closing Date, of each of the following conditions: 21 (a) Representations and Warranties. All of the representations and warranties of ONWASA set forth in this Agreement that are qualified as to materiality shall be true and correct and all such representations and warranties that are not so qualified shall be true and correct in all material respects, in each case as of the date of this Agreement and as of the Closing Date. (b) ONWASA Covenants. ONWASA shall have in all material respects performed and complied with the obligations and covenants required by this Agreement to be performed or complied with by ONWASA on or prior to the Closing Date. (c) Closing Deliveries. ONWASA shall have delivered, and duly executed where appropriate, to Pluris each of the items set forth in Section 4.4(b). (d) Litigation. There shall not have been commenced or threatened against Pluris any Action by any third party (i) involving any challenge to, or seeking damages or other relief in connection with, ONWASA's ability to perform any of the Contemplated Transactions or (ii) that may have the effect of preventing, delaying, making illegal, imposing limitations or conditions on or otherwise interfering with ONWASA's ability to perform any of the Contemplated Transactions. (e) Third Party Consents. All consents, authorizations and Regulatory Approvals listed in Section 2.3 shall have been obtained. (f) ONWASA shall have paid the Cash Payment to Pluris. The foregoing conditions are for the sole benefit of Pluris and may be waived by Pluris, in whole or in part, at any time in the sole discretion of Pluris. ARTICLE 6 TERMINATION 6.1 Termination. This Agreement may be terminated at any time prior to the Closing: (a) By the mutual written consent of ONWASA and Pluris; (b) By ONWASA or Pluris, by written notice to the other Party, if any Governmental Authority (other than ONWASA) shall have issued or entered any Order or taken any other action, which has the effect of making the Contemplated Transactions illegal or otherwise permanently restrains, enjoins or otherwise prohibits the Contemplated Transactions; (c) By Pluris, by written notice to ONWASA, if ONWASA shall have breached in any material respect any of its representations, warranties, covenants or agreements contained in this Agreement, and such breach has not been cured by ONWASA within ten (10) days after its receipt of written notice of such breach from Pluris; 22 (d) By ONWASA by written notice to Pluris if Pluris shall have breached in any material respect any of its representations, warranties, covenants or agreements contained in this Agreement, and such breach has not been cured by Pluris within ten (10) days after its receipt of written notice of such breach from ONWASA; (e) By ONWASA, by written notice to Pluris, if ONWASA is not satisfied with its due diligence investigation of the Systems Assets, the Assumed Liabilities and the business, condition (financial or otherwise), assets and results of operations of the Systems; or (f) Subject to Section 1.2, by ONWASA or Pluris, by written notice to the other Party, in the event the Closing has not taken place by the Closing Deadline. 6.2 Effect of Termination. Upon the termination of this Agreement in accordance with Section 6.1, the Parties shall have no further liability or obligation under this Agreement except (a) that no such termination shall relieve any Party from liability for any material breach of this Agreement by such Party prior to such termination and (b) that the obligations and liabilities arising under this Section 6.2 and any obligation expressly provided to survive a termination of this Agreement shall remain in full force and survive such termination of this Agreement. Further, the two hundred thousand dollar ($200,000.00) Deposit paid on the signing of the Memorandum of Intent shall be repaid to ONWASA by Pluris if the termination was due to, the failure to approve the transaction by the Local Government Commission, or the inability of ONWASA to issue revenue bonds or otherwise obtain financing to secure the Cash Payment. In the event of a termination under any other circumstance, Pluris shall retain the Deposit. ARTICLE 7 IRESERVEDI ARTICLE 8 MISCELLANEOUS 8.1 Expenses. Except as otherwise expressly provided in this Agreement, each Party shall bear its expenses incurred in connection with the preparation and performance of the Transaction Documents and the Contemplated Transactions. 8.2 Notices. All notices, consents, waivers and other communications under this Agreement must be in writing and will be deemed to have been duly delivered and received (a) when delivered personally (deemed received on receipt or refusal of delivery) or (b) one business day after being sent by a nationally recognized overnight delivery service (charges prepaid), in each case to the appropriate physical addresses set forth below (or to such other physical addresses as a Party may designate by notice in writing to the other Parties): 23 If to ONWASA: Onslow Water and Sewer Authority 228 Georgetown Rd. Jacksonville, North Carolina 28540 Attn: Chief Executive Officer with copy to: (which copy shall not constitute notice) If to Pluris: with copy to: (which copy shall not constitute notice) Kitchen Law, PLLC 502 Main St. Ext., Unit 110 Swansboro, NC 28584 Maurice W. Gallarda, PE Manager Pluris 5950 Berkshire Lane Suite 800 Dallas, TX 75225 Daniel C. Higgins Emily D. Iverson Burns, Day & Presnell, PA Suite 560 2626 Glenwood Avenue Raleigh, NC 27608 8.3 Entire Agreement. Amendments and Waivers. This Agreement constitutes the entire agreement and supersedes all prior agreements and understandings, both written and oral, among the Parties with respect to the subject matter hereof. This Agreement may be amended only by a written instrument signed by all Parties expressly stating that such instrument is intended to amend this Agreement. A Party's failure or delay in exercising any right, power or privilege under this Agreement or the other Transaction Documents will not operate as a waiver of such right, power or privilege, and no single or partial exercise of any such right, power or privilege will preclude any other or further exercise of such right, power or privilege or the exercise of any other right, power or privilege. A waiver by any Party of any term or condition of this Agreement in any one instance shall not be deemed or construed to be a waiver of such term or condition in any other instance in the future (whether similar or dissimilar) or of any subsequent breach hereof. 8.4 Time of Essence. Each Party agrees that, with regard to all dates and time periods set forth or referred to in this Agreement, time is of the essence. 8.5 Assignments, Binding Nature and No Third Party Rights. Neither this Agreement nor any of the rights, liabilities or obligations hereunder may be assigned or delegated by either Party without the prior written consent of the other Party; provided, however, that: (i) after the Closing, ONWASA may assign this Agreement, and any or all of its rights, liabilities and 24 obligations under this Agreement, without the prior written consent of Pluris; and (ii) Pluris may assign this Agreement without the prior written consent of ONWASA as part of a Section 1031 like -kind exchange under the Code under the terms set forth in this Section. If Pluris elects to sell the Real Property by means of a Section 1031 like -kind exchange, ONWASA shall cooperate with Pluris in effecting that 1031 exchange; provided, however, that such 1031 exchange shall not: (i) delay the Closing; (ii) change the consideration otherwise to be paid for the Real Property or the Systems Assets under this Agreement; (iii) expose ONWASA to any obligation, liability, or cost whatsoever (including, without limitation, any responsibility or liability of any kind for the failure of such exchange to be consummated or to qualify for tax -deferred status under any federal or State law or rule and any damage calculated or related in any fashion to Pluris' lost tax benefits), (iv) require ONWSA to hold title to any property; or (v) relieve Pluris of any of its agreements or other obligations under this Agreement. This Agreement shall be binding upon, inure to the benefit of and be enforceable by the Parties and their respective successors and permitted assigns. No such assignment shall release the assigning Party from any liability or obligation under this Agreement without the prior written consent of the other Party. Any such assignment made in breach of this Section 8.5 will be void and of no force or effect. Nothing expressed or referred to in this Agreement will be construed to give any Person other than the Parties any legal or equitable right, remedy or claim under or with respect to this Agreement. This Agreement and all of its terms and conditions are for the sole and exclusive benefit of the Parties and their successors and permitted assigns. 8.6 Severability. If any provision of this Agreement is held invalid or unenforceable by any court of competent jurisdiction, the other provisions of this Agreement will remain in full force and effect. Any provision of this Agreement held invalid or unenforceable only in part or degree will remain in full force and effect to the extent not held invalid or unenforceable. 9.7 Governing Law. This Agreement and all matters arising out of or in connection with this Agreement and its Exhibits and Schedules (whether arising in contract, tort, equity or otherwise), including the construction and interpretation thereof, shall be governed by the Laws of the State of North Carolina (including its statutes of limitations) without regard to conflicts of laws principles. 8.8 Electronic Signature. This Agreement may be executed in two or more counterparts, each of which will be deemed to be an original copy of this Agreement and all of which, when taken together, will be deemed to constitute one and the same agreement. This Agreement may be executed by one or more facsimile signatures, or signatures transmitted by other electronic means (including via e-mail in a .pdf copy). The Parties agree that any signature, whether it be electronic, digital or a .pdf copy of a manual signature, is intended to authenticate this Agreement and shall have the same effect as a manual or original signature. 8.9 Construction and Interpretation. The headings of Sections and Articles in this Agreement are provided for convenience only and will not affect its construction or interpretation. All references to a "Section" or "Article" refer to the corresponding Section or Article of this Agreement, except as otherwise expressly set forth in this Agreement. The Parties 25 have participated jointly in the negotiation and drafting of this Agreement. If an ambiguity or question of intent or interpretation arises, this Agreement shall be construed as if drafted jointly by the Parties, and no presumption or burden of proof shall arise favoring or disfavoring any Party by virtue of the authorship of any of the provisions of this Agreement. In this Agreement unless a clear contrary intention appears: (a) reference to any agreement or instrument means such agreement or instrument as amended or modified and in effect from time to time in accordance with the terms thereof; (b) "hereunder," "hereof," "hereto" and words of similar import shall be deemed references to this Agreement as a whole and not to any particular Article, Section or other provision thereof; (c) "including" (and with correlative meaning "include") means including without limiting the generality of any description preceding such term; and (d) the terms "dollars" and ' $" mean United States Dollars. Neither the specification of any amount nor the inclusion of any specific item or matter in any provision of this Agreement or in any Schedule or Exhibit is intended to imply that such amount, or higher or lower amount, or such item or matter, is or is not material. No remedy conferred herein upon or reserved to a Party is intended to be exclusive and every such remedy shall be cumulative and shall be in addition to every other remedy given hereunder or now or hereafter existing at law or equity. 8.10 Schedules and Exhibits. The Schedules and Exhibits identified in this Agreement are incorporated herein by reference and made a part hereof. Any fact or item which is disclosed on any Schedule shall be deemed disclosed on each other Schedule to the extent that its relevance or applicability to information called for by such other Schedule is reasonably apparent in the disclosure on the face of such first Schedule, notwithstanding the omission of a reference or cross-reference to such. The disclosures made in any Schedule will be deemed disclosed for purposes of the Section or subsection of this Agreement that corresponds in number to the relevant Section or subsection of such Schedule and, except as expressly set forth in such Schedule or as provided in the preceding sentence, will not be deemed or construed as a disclosure or exception with respect to any other provision of this Agreement. No disclosure in the Schedules relating to any possible breach or violation of any agreement or Law shall be construed as an admission or indication that any such breach or violation exists or has actually occurred. In the event of any inconsistency between the statements in the body of this Agreement and those in any Schedule (other than an exception expressly set forth as such in a Schedule), the statements in the body of this Agreement will control. 8.11 Dispute Resolution. Any dispute involving this Agreement shall be determined by the appropriate division of the General Court of Justice in Onslow County, North Carolina. 8.12. Conflicting Terms. To the extent the provisions of this Agreement conflict with the terms of that "Memorandum of Intent" dated February 16, 2023 executed by the Parties, the provisions of this Agreement shall control. 8.13. Surviving _Obli atg ions. Any obligations which are expressly provided to survive the Closing (including Articles 2 and 3) or any provision which by its nature and effect must be observed, kept, or performed after the Closing (including Article 8) shall survive the Closing and shall remain binding upon and for the benefit of the Parties until fully observed, kept, or 26 performed in accordance with its terms. 8.14. Definitions. For all purposes of this Agreement, except as otherwise expressly provided or unless the context clearly requires otherwise: "Action" means any claim, demand, action, cause of action, lawsuit, litigation, arbitration, inquiry, notice of violation, audit, proceeding, summons, subpoena or investigation of any kind or nature, whether at law or in equity and whether civil, criminal, administrative, regulatory or otherwise. "Agreement" means this Systems Purchase Agreement, together with the Exhibits and the Schedules attached hereto, as amended from time to time. "Assumed Contracts" means the contracts listed on Schedule 1.1(a)(vi). "Assumption Agreement" has the meaning set forth in Section 4.4(a)(ii). "Cash Payment" has the meaning set forth in Section 4.4(b)(iii). "Closing" refers to the closing of the Contemplated Transactions. "Closing Date" has the meaning set forth in Section 1.2. "Code" means the Internal Revenue Code of 1986, as amended. "Contemplated Transactions" means all the transactions contemplated by this Agreement and the other Transaction Documents. "Customer Deposits" means all deposits received by Pluris from Systems customers with respect to the Systems services. "Customer Information" has the meaning set forth in Section 4.9(a). "Customer List" has the meaning set forth in Section 4.9(a). "Easements" means all easements, rights of way, rights, privileges and appurtenances, including proofs of dedication, in which Pluris has any right, title or interest and which are used or held solely for use by Pluris in connection with the Systems. "Effective Date" has the meaning set forth in the Preamble. "Employee Liabilities" has the meaning set forth in Section 4.7 "Encumbrances" means any and all liens, charges, security interests, options, claims, mortgages, 27 pledges, proxies, voting trusts or agreements, obligations, covenants, easements, servitudes, rights of way, encroachments, understandings or arrangements or other restrictions on title or transfer of any nature whatsoever. "Environmental Claim" means any Action, including any enforcement matter, investigation or notice (written or oral), by any Person alleging actual or potential liability for non-compliance, investigatory, cleanup or governmental response costs, or natural resources or property damages, or personal injuries, attorney's fees or penalties relating to (a) the presence, release, or threatened release of any Hazardous Materials at any Owned Real Property location, (b) circumstances forming the basis of any violation of any Environmental Law by Pluris, or (c) the release or threatened release of any Hazardous Materials by Pluris. "Environmental Law" means each and every Law relating to pollution, protection or preservation of human health, human safety or the environment including ambient air, surface water, ground water, land surface or subsurface strata, and natural resources, and including each law and regulation relating to emissions, discharges, releases or threatened releases of Hazardous Materials, or otherwise relating to the manufacturing, processing, distribution, use, treatment, generation, storage, containment (whether above ground or underground), disposal, transport or handling of Hazardous Materials, or the preservation of the environment or mitigation of adverse effects thereon and each Law with regard to, without limitation, compliance, record keeping, notification, disclosure and reporting requirements respecting Hazardous Materials. "Financial Statements" has the meaning set forth in Section 2.4. "Governmental Authority" means any federal, state, or local government, or any court, governmental division or department, administrative agency or commission or other governmental or quasi -governmental authority or instrumentality of any nature, domestic or foreign or any arbitral tribunal. "Hazardous Materials" means chemicals; pollutants; contaminants; wastes; toxic or hazardous substances (including substances listed as hazardous under the United States Comprehensive Environmental Response, Compensation and Liability Act (CERCLA), the Resources Conservation Recovery Act (RCRA), and the North Carolina Inactive Hazardous Substances Act), materials and wastes; petroleum and petroleum products; asbestos and asbestos -containing materials; polychlorinated biphenyls; lead and lead -based paints and materials; and radon. "Lagoon" means the real property owned by Pluris located at Highway "Law" means any applicable federal, state, local, municipal, or other constitution, law, ordinance, principle of common law, code, regulation, rule, order or statute as amended, modified, codified, replaced or reenacted, in whole or in part, and in effect from time to time, including rules and regulations promulgated thereunder. "Losses" means all damages, liabilities, obligations, deficiencies, Actions, judgments, interest, 28 awards, penalties, fines, costs and other losses and expenses of every kind and nature, including reasonable attorneys' fees; but excluding punitive, indirect, exemplary, and consequential damages. "ONWASA" has the meaning set forth in the Preamble. "ONWASA Revenues" has the meaning set forth in Section 4.9(c). "ONWASA's Knowledge" means the actual knowledge of ONWASA's Chief Executive Officer. "Order" means any order, injunction, judgment, decree, ruling, assessment or arbitration award of any Governmental Authority or arbitrator. "Ordinary Course of Business" means, with respect to any action of Pluris, that such action is taken in the ordinary course of normal, day-to-day operations of Pluris and is consistent with Pluris' past practices. "Other Contracts" has the meaning set forth in Article 9. "Owned Real Property" has the meaning set forth in Section 2.9(b). "Party" or "Parties" has the meaning set forth in the Preamble. "Permits" means all permits, licenses, consents, approvals, authorizations, certificates, registrations, variances and similar rights obtained, or required to be obtained, from Governmental Authorities. "Permitted Encumbrances" means any equipment, software, or other leases assumed by ONWASA under the Assumption Agreement, Encumbrances for ad valorem Taxes for the then current year, and all matters of record as of the Effective Date. Deeds of Trust and financing agreements, if any, shall not be "permitted encumbrances". If paid off at Closing, Deeds of Trust and/or financing agreements shall be deducted from the consideration otherwise to be received by Pluris for the Systems Assets under Section 1.1(d). "Person" means a natural person, partnership, corporation, limited liability company, business trust, joint stock company, trust, unincorporated association, joint venture, Governmental Authority or other entity or organization. "Pluris Revenues" has the meaning set forth in Section 4.9(c). "Pluris' Knowledge" and the "Knowledge of Pluris" mean the actual knowledge of. (i) with respect to Pluris, LLC, Dwight Peterson; and (ii) with respect to Pluris Webb Creek, LLC, William Andrews. 29 "Policies" has the meaning set forth in Section 2.14. "Systems Assets" has the meaning set forth in Section 1.1(a). "Real Property" has the meaning set forth in Section 2.9(a)(i). "Required Easements" means all easements, rights of way, rights, privileges and appurtenances, including proofs of dedication, solely used in connection with the Systems operation and required by Pluris in order to use and operate the Systems Assets in the manner in which the Systems Assets are currently being used and operated. "Schedules" means the Schedules attached to this Agreement. "State" means the State of North Carolina. "Tax" or "Taxes" means all taxes, charges, fees, duties, levies, penalties or other assessments imposed by any federal, state, or local Govermnental Authority, including income, gross receipts, excise, property, sales, gain, use, license, custom duty, unemployment, transfer, franchise, payroll, withholding, social security, minimum estimated, profit, gift, severance, value added, disability, premium, recapture, credit, occupation, service, leasing, employment, stamp and other taxes, and shall include interest, penalties or additions attributable thereto or attributable to any failure to comply with any requirement regarding Tax Returns. "Tax Return" means any return, declaration, report, claim for refund, or information return or statement relating to Taxes, including any such document prepared on a consolidated, combined or unitary basis and also including any schedule or attachment thereto, and including any amendment thereof. "Transaction Document' means this Agreement, the certificates, agreements, instruments and documents delivered by a Party pursuant to Section 4.4 and all other certificates, agreements, instruments and documents executed and delivered by a Party in accordance with this Agreement. [The remainder of this page is blank. Signature page follows.] 30 IN WITNESS WHEREOF, the undersigned have executed and delivered this Agreement as of the Effective Date. PLURIS: Pluris, LLC, a P orth Carolina limited liability company By Its Manager: Plurs Mvisors, LLC, a Texas(limited liabili Manager Pluris Webb Creel:, LLC, a North Carolina limited liability company By Its Manager: Pluris Apvisors, LLC, a Texas limited liablli; By: vy W" v Nameff le: Maurice Oallarda, Manager 31 ONWASA: Onslow Water and Sewer Authority, an authority organized under the North Carolina Water and Sewer Author' 'es Act By: ichael R e Be ett Chairman 32 This instrument has been preaudited in the manner required by the Local Government Budget and Fiscal Control Act, and is contingent upon the Local Government Commission approval of revenue bond issuance. -Iury-� ) � C ((�, Finance Officer 6 SCHEDULE 1.1(a)(v) List of Transferrable Permits Listed on the following pages are what are understood to be transferrable North Carolina Department of Environmental Quality ("NCDEQ-) permits held by Pluris, LLC and Pluris Webb Creek, LLC. All permits are kept on file at each utility and are also available on file at the Wilmington office of the NCDEQ. Some permits have been consolidated into single permits as identified in the listing. Dwight Peterson with Pluris, LLC and William Andrews with Pluris Webb Creek, LLC may be reached for additional information. As ONWASA is not regulated by the NCUC, the Certificates of Public Convenience and Necessity held by Pluris, LLC and Pluris Webb Creek, LLC will not be transferred to ONWASA. Pluris, LLC Permit # NCDEQ Permits Name Description W00005849 MBR and Lagoons Treatment Plant WQCS00275 Systemwide Collection System Gravity and Force Mains W00034486 North Topsail Sneads Ferry North Basin (consolidated)* Collection System WQ0034485 North Topsail Sneads Ferry South Basin Collection System (consolidated)* WQ0034483 North Topsail Sneads Ferry North Beach Basin Collection System (consolidated)* * Consolidated - a number of individual permits included in consolidation and each individual permit is on file at Pluris Pluris Webb Creek, LLC Permit # Name Description NCO089877 Webb Creek MBR Treatment Plant WQCS00230 Webb Creek Collection System Gravity and Force Mains WQ0018455 Fox Den Duplex Lift Station WQ0016303 Fox Trace Section #4 Phase 5 Duplex Lift Station WQ0034087 Jacks Branch Duplex Lift Station WQ0034087 Jacks Branch Modification Duplex Lift Station W00001237 Dayrell Point Duplex Lift Station WQ0031256 Quails Roost Duplex Lift Station WQ0010030 Buckhead Duplex Lift Station WQ0003776 Fox Trace Phase 2 Duplex Lift Station WQ0014883 Fox Trace Duplex Lift Station WO0014479 Fox Trace Point 2 Duplex Lift Station W00024807 Creeker Town Duplex Lift Station WQ0024807 Fox Trace Point Duplex Lift Station WQ0005997 Queens Creek Duplex Lift Station WQ0004263 Fox Trace Duplex Lift Station WQ0013643 Fox Trace Section 5 Duplex Lift Station WQ0020566 Fox Lair Duplex Lift Station WQ0022596 Buckhead Duplex Lift Station WO0022596 Buckhead Modification #1 Duplex Lift Station WQ0014111 Sand Ridge Elementary School Duplex Lift Station W00007887 Fox Trace Section 3 #1 Duplex Lift Station WQ0007887 Fox Trace Section 3 Modification 1 Duplex Lift Station WQ0003776 Fox Trace Section 2 Duplex Lift Station WQ0012444 Fox Trace Section 4 Phase 6 Duplex Lift Station