NC0074772_Permit Modification_20061102

�0F VAT F9Q Michael F. Easley, Governor
William G. Ross Jr., Secretary
t— North Carolina Department of Environment and Natural Resources
o
� 1
'C Alan W. Klimek, P.E. Director
Division of Water Quality
November 2, 2006
Mr. Michael J. Myers
Heater Utilities, Inc.
202 MacKenan Ct.
Cary, NC 27511
Subject: Adjudicatory Settlement / Final Permits
NPDES Permits NC0056154, NC0060593, NC0062481, NC0063355,
KIMONO NCO075205 & NCO080691
Bridgeport, Spinnaker Bay, Mallard Head, Killian's Crossroads,
Diamond Head, Alexander Island & Windemere WWTPs
Catawba, Lincoln & Iredell Counties
Dear Mr. Myers:
Subsequent to Heater Utilities, Inc.'s adjudication of the subject NPDES permits originally released in
2005, and in accordance with the terms of the Settlement Agreement established between Heater
Utilities, Inc. and the Division of Water Quality to resolve matters in dispute within the terms of the
2005 permits, we are forwarding the attached NPDES discharge permits. These permits are issued
pursuant to the requirements of North Carolina General Statute 143-215.1 and the Memorandum of
Agreement between North Carolina and the U.S. Environmental Protection Agency dated May 9, 1994
(or as subsequently amended).
These final permits include no changes from the draft permits sent to you on August 30, 2006.
Please be advised of the following conditions within these permits that are significantly different from
those found in the currently active permits:
• Where the existing permits had monthly average limits for ammonia nitrogen, daily maximum limits
for ammonia nitrogen have been added to those permits. These limits become applicable on the
effective date of the permits.
For each of the permits, the fecal coliform monitoring frequency during the summer months has
been set at 3 days per week.
For each of the permits, a new section titled "Operations" has been added. Within the section are
terms calling for 1.) the installation of turbidimeters to measure effluent turbidity, with the ability to
automatically communicate to the plant operator if a reading of 10 nephelometric units or higher is
detected; 2.) installation of SCADA systems, and 3.) daily inspection of the plants' disinfection
systems and documentation of those inspections.
Noo.r� Carolina
�vaturatty
North Carolina Division of Water Quality 1617 Mail Service Center Raleigh, NC 27699-1617 Phone [phone] Customer Service
Internet: www.ncwatercluality.org notation: 512 N. Salisbury St. Raleigh, NC 27604 Fax [phone]
An Equal OpportuniYAtfinative Action Employer- 50% Recycled/10% Post Consumer Paper

Mr. Michael J. Myers
Heater Lake Norman Permit Renewals
p. 2
• A condition has been added describing forms of public notification that must be made in the event of
a discharge of untreated or undertreated wastewater from the permitted facilities.
If any parts, measurement frequencies or sampling requirements contained in this permit are
unacceptable to you, you have the right to an adjudicatory hearing upon written request within thirty
(30) days following receipt of this letter. This request must be in the form of a written petition,
conforming to Chapter 150B of the North Carolina General Statutes, and filed with the Office of
Administrative Hearings (6714 Mail Service Center, Raleigh, North Carolina 27699-6714). Unless
such demand is made, this decision shall be final and binding.
Please note that this permit is not transferable except after notice to the Division. The Division may
require modification or revocation and reissuance of the permit. This permit does not affect the legal
requirements to obtain other permits which may be required by the Division of Water Quality or permits
required by the Division of Land Resources, the Coastal Area Management Act or any other Federal or
Local governmental permit that may be required.
It is expected that the issuance of these permits resolves all matters associated with the adjudication of
the 2005 permits and thereby, all pending action within the jurisdiction of the Office of Administrative
Hearings may be withdrawn.
If you have any questions concerning these permits, please contact Bob Sledge at telephone number
[phone], extension 547.
Sincerely,
n� Alan W. Klimek, P.E.
cc: Central Files
MRO — Surface Water Protection Section
NPDES Unit 0
Attomey General's Office — Anita LeVeaux

Permit NCO074772
STATE OF NORTH CAROLINA
DEPARTMENT OF ENVIRONMENT AND NATURAL RESOURCES
DIVISION OF WATER QUALITY
PERMIT
TO DISCHARGE WASTEWATER UNDER THE
NATIONAL POLLUTANT DISCHARGE ELIMINATION SYSTEM
In compliance with the provision of North Carolina General Statute 143-215.1, other lawful
standards and regulations promulgated and adopted by the North Carolina Environmental
Management Commission, and the Federal Water Pollution Control Act, as amended,
Heater Utilities, Inc.
is hereby authorized to discharge wastewater from a facility located at the
Diamond Head WWTP
NCSR 1109
near Mooresville
Iredell County
to receiving waters designated as Lake Norman (Reeds Creek Arm) in the Catawba
River Basin
in accordance with effluent limitations, monitoring requirements, and other
conditions set forth in Parts I, II, III and IV hereof.
This permit shall become effective December 1, 2006.
This permit and authorization to discharge shall expire at midnight on March 31, 2010.
Signed this day November 2, 2006.
i
�ii Alan W. Klimek, P.E., Director
Division of Water Quality
By Authority of the Environmental Management Commission

Permit NCO074772
SUPPLEMENT TO PERMIT COVER SHEET
All previous NPDES Permits issued to this facility, whether for operation or
discharge are hereby revoked. As of this permit issuance, any previously issued
permit bearing this number is no longer effective. Therefore, the exclusive authority
to operate and discharge from this facility arises under the permit conditions,
requirements, terms, and provisions included herein.
Heater Utilities, Inc., is hereby authorized to:
1. Continue to operate an existing 0.100 MGD wastewater treatment system
with the following components:
• Bar screen
• Flow splitter box
• Dual aeration basins
• Dual clarifiers
• Tertiary filters
• Tablet chlorination and dechlorination
• Flow recorder
• Standby power generator
This wastewater treatment system is located at the Diamond Head WWTP on
NCSR 1109 near Mooresville in Iredell County.
2. Discharge from said treatment works at the location specified on the attached
map into Lake Norman (Reeds Creek Arm), classified WS-IV & B CA waters in the
Catawba River Basin.

Permit NCO074772
A. (l.) EFFLUENT LIMITATIONS AND MONITORING REQUIREMENTS — FINAL
During the period beginning on the effective date of the permit and lasting until expiration, the
Permittee is authorized to discharge from outfall 001. Such discharges shall be limited and
monitored by the Permittee as specified below:
EFFLUENT ..
CHARACTERISTICS
LIMITS
MONITORING REQUIREMENTS
Monthly .
Average
Daily
Maximum
Measurement
Frequency.
Sample Type
Sample Location
Flow
0.100 MGD
Continuous
Recording
Influent or Effluent
BOD, 5 day (209C)
15.0 mg/L
22.5 mg/L
Weekly
Composite
Effluent
Total Suspended Residue
30.0 mg/L
45.0 mg/L
Weekly
Composite
Effluent
NH3 as N
4.0 mg/L
20.0 mg/L
Weekly
Composite
Effluent
Dissolved Oxygenl
Weekly
Grab
Effluent
Fecal Coliform (geometric mean)
(April 1- October 31
200 / 100 ml
400 / 100 ml .
3/Week
Grab
Effluent
Fecal Coliform (geometric mean)
November 1- March 31
200 / 100 ml
400 / 100 ml
Weekly
Grab
Effluent
Total Residual Chlorine
28 /ug/L
2/Week
Grab
Effluent
Temperature
Weekly
Grab
Effluent
Total Nitrogen (NO2+NO3+TKN)
Quarterly
Composite
Effluent
Total Phosphorus
Quarterly
Composite
Effluent
pH2
Weekly
Grab
Effluent
Footnotes:
I. The daily average dissolved oxygen effluent concentration shall not be less than 6.0 mg/L.
2. The pH shall not be less than 6.0 standard units nor greater than 9.0 standard units.
There shall be no discharge of floating solids or visible foam in other than trace amounts.
A. (2.) TOXICITY REOPENER CONDITION
In the event that toxicity testing or other studies (conducted on the effluent or receiving
stream) indicate that detrimental effects may be expected as a result of this discharge, the
Division may modify or revoke and reissue this permit with toxicity limits and monitoring
requirements.

Latitude: 35°33'5T' N C 0 0 7 4 7 7 2 Facility
Longitude: W51'58"
Quad # E15SE Location
Receiving Stream: Lake Norman
Stream Class: WS-IV & B CA Heater Utilities
Subbasin:30832 Diamond Head NorthlSCALE 1:24000

Permit NCO074772
A. (3.) SPECIAL CONDITION - Operations
Pursuant to the terms of the Settlement Agreement established between Heater Utilities,
Inc. and the Division of Water Quality, signed on June 26, 2006, Heater Utilities, Inc. shall:
(a) Install a turbidimeter at the plant to measure turbidity in the plant effluent, and set
the turbidimeter to notify the plant operator automatically in the event that the
turbidimeter records a reading of 10 nephelometric turbidity units or greater;
(b) Inspect the performance of the plant's disinfection system every weekday and maintain
a log of such inspections; and
(c) Install a Supervisory Control and Data Acquisition (SCADA) system at the plant.
A. (4.) SPECIAL CONDITION - Spill Notification
(a) Contacting Public Health Directors
The facility must notify the Iredell and Mecklenburg County Public Health Directors within
12 hours of first knowledge by the owner/operator of any discharge of untreated
wastewater to waters of the State or a discharge from the wastewater treatment plant that
has not received adequate disinfection due to a malfunctioning treatment unit.
The County Public Health Directors can be contacted using the following information:
Iredell County Health Director
318 Turnersburg Highway
Statesville, NC 28625
704-878-5302
(b) Public Notification
Mecklenburg County Health Director
249 Billingsley Road
Charlotte, NC 28211
704-336-4700
The facility must notify the public of untreated wastewater spills. Wastewater facility
owners or operators must issue a press release after a discharge to surface waters of 1,000
gallons within 48 hours of first knowledge of the spill by the owner/operator. The press
release must be issued to "all electronic and print news media outlets that provide general
coverage in the county where the discharge occurred." A copy of the press release must be
maintained for one year by the owner/operator. This press release is required in addition
to the permit requirement of contacting the North Carolina Division of Water Quality
(DWQ).

Permit NCO074772
A. (4.) SPECIAL CONDITION — Spill Notification, continued
If a discharge of 15,000 gallons or more reaches surface water, a public notice is required
in addition to the press release. The public notice must be placed in a newspaper having
general circulation in the County in which the discharge occurred and the county
immediately downstream. At a minimum the notice should be published in a newspaper of
general circulation in Iredell and Mecklenburg Counties.. If a discharge of 1,000,000
gallons of wastewater or more reaches surface waters, the DWQ regional office must be
contacted to determine in what additional counties, if any, a public notice must be
Published. A copy of these public notices and proof of publication must be sent to the
DWQ within 30 days of publication. The copy should be sent to the following address:
PERCS Unit
Division of Water Quality
1617 Mail Service Center
Raleigh, NC 27699
The minimum content of the notice is the location of the discharge, estimated volume,
water body affected and steps taken to prevent future discharges.

p STATE OF • r }
NORTH CAROLINA '. @
-7 �5l
NORTH CAROLINA
IREDELL COUNTY
AFFIDAVIT OF PUBLICATION
Before the undersigned, a Notary Public of Catawba County,
North Carolina, duly commissioned, qualified, and authorized
by law, to administer oaths, in said County and State; that he/
she is authorized to make this affidavit and sworn statement;
that the notice or other legal advertisement, a true copy of
which is attached hereto, was published in the
Statesville Record and Landmark
on a following dates.
1
and that the said newspaper in which such notice,
or legal advertisement was published, was a newspaper
meeting all of the requirements and qualifications of Section
1-597 of the General Statutes of North Carolina.
4Assnt Bookkeeper
Sworn to and subscribed before me, this
day of , 2006
PotatVPublic
My Commission Expires 0 4 ! a
ENVIRONMENTAL
MANAGEMENT.- -
COIN,
;. ' NPDES UKfrRALERK
27699-
Kai __ INTIENT
TOISSUE ' 'A NPQES
WASTEWATEO PERMIT ,
on ft basis of thorough staff
review and applicetlon d' NO
L-tG rd Ste W 14921Public
law- *= -end - ZW tawid
Na ft C end reft
North' Ceroft
'
� liprraa �pposesDosesissW a Ndmd Pd�
krtant;:~ Dischsrge : Elkrrbrstion
pa)
ie� : �• .
s) effective
o6 day odo froth
ft , PAM lobe
Wftn ' conrrnarrta-' regarorng
the proposed pennit-vA be
!, accepted - urdii 40 . days after
i the publish date d th{snotke.•
AN coa
that datets are ere h`the.
the proposed' pear
rector d the NO .' Dhdsioe d
Water ,Quell► .may decide to
pfor ropos lien shy d the Di.
vision roe" .. a signiOCant
degree d puttic: interest.
:gpies.ef the draft nett and
. uer ` '
on tste used to deteWm oar-
ditions pmeserrt 7 in the draft.
Permit are available upon re-
quest and payment- d ttra
costs of repspductioe. Mal
oormwm wwor:rawiests for
. Wa orlon to, the NO Dtdslon
d` Water 024at the above;:
address or � qen ` the `' , PoEnt
Source Branch'at (919) 733. '
. 5083,• eodmWm : 383 or SM.
Please Inckxie' -fie NPOES
pemit - mm6er (attached) In
any Cann r kdar. - Interested
persons may also visitthe M
,vision d'Water Quatty at 512 ,
N. - Saf wy Strad, - Raleigh, :
NO--276*1148 between• thhee .
haws, of a00 am. and 5:00
pm. to review Inform dw d
foe.
HeaterL til h% Inc. :...(P.O.
Drawer : 4889, Cary, . NC
27519) has applied for renewal
fo NP : 'rt wrp In
for the � rt WWTP in
Imdd CMM P
ferny d ectlarges 0.08 tr *
ed westawater : • to Catawba
River in the Cato% River Ba.
sin. Ouno* BOD; ammonia
tomand - tow; residual
e - are' water quality
"limited. This disrdrarge may
affect fuse agecadom in rids
poft of the Catawba • River
eshG The temrs of INS pemrft
have been moMW from those
conkirred in the are placed d.

'Q;r 4889. Cmv NO
!am WWTP In Wish County.
IThb parmead facility ds-
,nnesheaed wastewater to
n
.. oe .tdbutam to
ammonia nitrogen and tow re-
isldual chlonnG era water
quality banned . This disdwge
may affect More anocanons in
this portion of are Catawba
Rivet Basin. The terms at the
pem ft have been moddled
hum those contained in are
one placed at public notice In
2005.
Herter Utilities Inc.. (P.O.
Drawer 4889, Cary, NC
Z7519) has applied for renew-
al at NPDES permit
NCWM for the Diamond
H4WWfP to ImM C W
This permitted facility dis-
charges 0.1 MGD treated
wastewater to lake Norman
tpards Creek. Alm) in the
Catawba River Basin. Cur -
many BOD, amnwnie mho-
gen; and total residual chlo-
dire are water qW eelimited.
This disdmrga may
him atlocetiona In this
portion of to Catawba River
Basin. The terms of this
ppaetron been modified
bait thhave contorted in the
are placed at public mks In
2005.
Heater Ualitles, Inc. (P.C.
Drawer 48�8p9p,Ae dCary, INC
aw
e2T519) of fJPDES peermit
NC00T5205 for the Alexander
i Island WWTP In Imdeti
Camy. ThLs ppaam,Poed facility
disdmtges U.015 MGD umt-
,atawba
o,wr ii k. NNomaniter toCIn th
I k BOD
Anne are
This de
of this permit have
had form those co-
ma Otte placed at
a In 2005...
mities Inc. (P.D.
4889. Cam. NC
la �,rob grained
Wjby didmrges 0.MGD
heeded WeShmier to Catem'
be RNer in the Catawba RNer
Bash. Currently 'BOD- ammo-
am nNogen and totalresidual
chlorine are water' quailty
[Mad. This d9char9e may of
fed fftum allacatiam In this
portion at the Catawba Rarer
Basin. The team of this pemtlt
have been modified from those,
contained N the arm placed at
public notice in 2005.
Publish Seatember 12, 20M

Michael F. Easley, Governor
William G. Ross Jr., Secretary
North Carolina Department of Environment and Natural Resources
August 30, 2006
MEMORANDUM
To: Britt Setzer
NC DENR / DEH / Regional Engineer
Mooresville Regional Office
From: Bob Sledge Oki
NPDES Western Unit
Subject: Review of Draft NPDES Permit NCO074772
Heater Utilities, Inc. — Diamond Head W WTP
Iredell County
Alan W. Klimek, P.E. Director
Division of Water Quality
ivlooresviBeq iVEDi
AUG 3' 2UO6
PtIblic 6 Ilssl �sd trgyiY
Please indicate below your agency's position or viewpoint on the draft permit and return this form by
October 2, 2006. If you have any questions about the draft permit, please contact me at (919) 733-
5083, extension 547, or via e-mail at [e-mail].
RESPONSE: (Check one)
IXConcur with the issuance of this permit provided the facility is operated and maintained properly,
the stated effluent limits are met prior to discharge, and the discharge does not contravene the
designated water quality standards.
1-1 Concurs with issuance of the above permit, provided the following conditions are met:
Opposes the issuance of the above permit, based on reasons stated below, or attached:
attachment
cc: NPDES Permit File
0]
roneCarolina
ura/!g
North Carolina Division of Water Quality 1617 Mail Service Center Raleigh, NC 27699-1617 Phone [phone]
Internet: www.ncwate[quality.org Location: 512 N. Salisbury St. Raleigh, NC 27604 Faz [phone]
An Equal Opportunity/Affirmative Action Employer— 50% Recycled/100/6 Post Consumer Paper
Customer Service
1-877-623-6748

STATE OF NORTH CAROLINA
COUNTY OF IREDELL
COUNTY OF CATAWBA
HEATER UTILITIES, INC. )
NPDES NC0060593, NC0056154, )
NC 0062481, NC006335, NC0074772, )
NCO075205 and NC0080691, )
Petitioner, )
V. )
NORTH CAROLINA DEPARTMENT OF )
ENVIRONMENT and NATURAL )
RESOURCES, DIVISION OF WATER )
QUALITY, )
Respondent. )
IN THE OFFICE OF
ADMINISTRATIVE HEARINGS
Nos. 05 EHR 1172, 05 EHR 0944,
05 EHR 9452 05 EHR 09462 05 EHR 0947,
05 EHR 0943 and 05 EHR 1173
SETTLEMENT AGREEMENT
The North Carolina Division of Water Quality ("DWQ") of the Department of
Environment and Natural Resources, under authority delegated by the North Carolina
Environmental Commission ("EMC"), and Heater Utilities, Inc. ("Heater"), hereby enter into this
Settlement Agreement ("Agreement") in order to amicably resolve the matters in controversy
between them regarding the above -captioned contested cases.
PROCEDURAL BACKGROUND
1. On June 14, 2005, Heater filed five petitions, 05 EHR 0943, 05 EHR 09445
05 EHR 0945, 05 EHR 0946 and 05 EHR 0947, for contested case hearing in the Office of
Administrative Hearings ("OAH") to appeal certain terms, conditions, and limitations contained

in NPDES permits issued by DWQ to Heater for five wastewater treatment facilities in Catawba
and Iredell counties.
2. On July 18, 2005, the Court granted the Heater's consent motion to consolidate
the five petitions for contested case hearing.
3. On July 25, 2005, Heater filed two additional petitions for contested case hearing
to appeal certain terms, conditions, and limitations contained in additional NPDES permits
issued by DWQ to Heater for two wastewater treatment facilities in Catawba and Iredell. counties
by DENR.
4. On August 3, 2005, the Court issued an order consolidating case numbers 05 EHR
1172 and 05 EHR 1173.
5. On August 26, 2005, Heater filed a motion to consolidate cases 05 EHR 1172 and
05 EHR 1173 with the five previously consolidated cases so that all of the seven cases could be
considered together.
6. On September 12, 2005, the Court granted the parties Consent Motion to Stay
Proceedings to allow the parties to pursue settlement negotiations.
7. As stated in N.C. Gen. Stat. § 150B-22, it is the public policy of the State of North
Carolina to resolve administrative disputes informally whenever possible.
AGREEMENT
8. DWQ will withdraw the most recently issued versions of the NPDES permits
("the Contested Permits") for Heater's Alexander Island, Bridgeport, Diamond Head, Killian
Crossroads, Mallard Head, Spinnaker Bay and Windemere wastewater treatment plants ("the
Lake Norman Plants") (Permit Numbers N00075205, NC0056154, NC0074772, NC0063355,
NC0062481, N00060593, and NCO080691) respectively.

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

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

Entered into and effective this the -/,^0/ day of 2006.
HE)
wi
NORTH CAROLINA DEPARTMENT OF
ENVIRONMENT AND NATURAL RESOURCES
DIVISION OF WATER QUALITY
By:
Alan Klimek, Director