WQ0044168_Operational Agreement_20240522

DocuSign Envelope ID:955BC7D0-B1C6-48EB-9300-8F8E9404EF3A
STATE OF NORTH CAROLINA
COUNTY OF DURHAM Permit No. W00044168
DEVELOPER'S OPERATIONAL AGREEMENT
This AGREEMENT made pursuant to G.S. 143-215.1 and entered into this 28"aytrf March 15, 2023
October;2fl2-2, by and between the North Carolina Environmental Management Commission, an agency of the
State of North Carolina, hereinafter known as the COMMISSION; and
-SC'ANN . . . PROPERTIES #515 LLC. an Indiana limited liability company,registered/licensed to do
business in the State of North Carolina, hereinafter known as the DEVELOPER.
WITNESSETH:
1. The DEVELOPER is the owner of the certain lands lying in Durham County,upon which it is erecting and
will erect industrial buildings and other improvements, said development to beknown
AS Durham 85 (hereinafter the Development).
2. The DEVELOPER desires, to construct a wastewater collection system with pumps, wastewater treatment
works, and/or disposal facilities(hereinafter Disposal System) to provide sanitary sewage disposal to serve
the Development on said lands.
3. The DEVELOPER has applied to the COMMISSION for the issuance of a permit pursuant to G.S. 143-
215.1 to construct, maintain, and operate the Disposal System.
4. The DEVELOPER has created or shall create a Declaration of Common Maintenance and Cross-Easements
(hereinafter Declaration), and record the same against the lands comprising the Development, for the
purpose, among others, of operating, maintaining, re-constructing and repairing the common elements of
the lands and improvements in the Development, including the Disposal System; and of collecting dues and
assessments to provide funds for such operation, maintenance, re-construction and repair.
5. The COMMISSION desires to assure that the Disposal System of the Development is properly constructed,
maintained and operated in accordance with law and permit provisions in order to protect the quality of the
waters of the State and the public interest therein.
NOW, THEREFORE, in consideration of the promises and the benefits to be derived by each of the parties
hereto,the COMMISSION and DEVELOPER do hereby mutually agree as follows:
1. The DEVELOPER shall construct the Disposal System in accordance with the permit and plans and
specifications hereafter issued and approved by the COMMISSION, and shall thereafter properly operate
and maintain such systems and facilities in accordance with applicable permit provisions and law.
2. The DEVELOPER shall not transfer ownership and/or control of the Disposal System until construction has
been completed in accordance with the permit and approved plans, and the staff of the Division of Water
Resources has inspected and approved of the facilities. In order to change the name of the permit holder,
the DEVELOPER must request that the permit be reissued to the new permit holder. The request must
include a copy of the Declaration and any such assignment of ownership and/or control.
3. The DEVELOPER shall not transfer, convey, assign or otherwise relinquish or release its responsibility for
the operation and maintenance of its Disposal System until a permit has been reissued to the DEVELOPER's
successor.
FORM: DEV 03-19 Pagel of 2

DocuSign Envelope ID:955BC7D0-B1C6-48EB-9300-8F8E9404EF3A
4. The DEVELOPER shall provide in the Declaration that the Disposal System and appurtenances thereto are
part of the common elements and shall thereafter be properly maintained and operated in conformity with
law and the provisions of the permit for construction, operation, repair, and maintenance of the system and
facilities. The Declaration shall identify the entire wastewater treatment, collection and disposal system as
a common element which will receive the highest priority for maintenance, repair and replacement
expenditures by the DEVELOPER except for Federal, State, and local taxes and insurance.
5. The DEVELOPER shall provide in the Declaration that the Disposal System will be maintained out of the
common expenses. In order to assure that there shall be funds readily available to repair, maintain or
construct the Disposal System,beyond the routine operation and maintenance expenses,the Declaration shall
provide that a fund be created out of the common expenses. Such fund shall be separate from the routine
maintenance funds allocated for the common elements of the Development and shall be part of the yearly
budget.
6. In the event the common expense allocation and separate fund are not adequate for the construction, repair,
and maintenance of the Disposal System,the Declaration shall provide for special assessments to cover such
necessary costs.There shall be no limit on the amount of such assessments,and the Declaration shall provide
that such special assessments can be made as necessary at any time.
7. If a wastewater collection system and wastewater treatment and/or disposal facility provided by any city,
town, village, county, water and sewer authorities, or other unit of government shall hereinafter become
available to serve the Development, the DEVELOPER shall take such action as is necessary to cause the
existing and future wastewater of the Development to be accepted and discharged into said governmental
system, and shall convey or transfer as much of the Disposal System and such necessary easements as the
governmental unit may require as condition of accepting the Development's wastewater.
8. Recognizing that it would be contrary to the public interest and to the public health, safety and welfare for
the DEVELOPER to enter into voluntary dissolution without having made adequate provision for the
continued proper maintenance, repair and operation of its Disposal System,the DEVELOPER shall provide
in the Declaration that the DEVELOPER shall not enter into voluntary dissolution without first having
transferred its said system and facilities to some person, corporation or other entity acceptable to and
approved by the COMMISSION by the issuance of a permit.
9. The agreements set forth in numbered paragraphs 1, 2, 3, 4, 5, 6, 7, and 8 above shall be conditions of any
permit issued by the COMMISSION to the DEVELOPER for the construction, maintenance, repair and
operation of the Disposal System.
10. A copy of this agreement shall be filed at the Register of Deeds in the County(ies) where the Declaration is
filed.
IN WITNESS WHEREOF, this agreement was executed in duplicate originals by the duly authorized
representative of the parties hereto on the day and year written as indicated by each of the parties named below:
FOR THE ENVIRONMENTAL Scannell Properties#/515, LLC
MANAG T,gCD)V[MISSION Name ofDEVELOPER
Vats t,ssa . �l atn u By:
&-Daniel Sm - is arc/E. Rogers, Jr (Signature)
Director, Division of Water
Resources
Marc D. Pfleging, Manager
Print Name and Title
3/15/2023
(Date) (Date) �{
FORM: DEV 03-19 Page 2 of 2