WQ0000088_Final Permit_20180823

NORTH CAROLINA
ROY COOPER Environmenfal Quality
MICHAEL S. REGAN
S"relwy
UNDA CULPEPPER
tffreffm Dnwff
August 23, 2018
SHANNON V. BECKER — PRESIDENT
AQUA NORTH CAROLINA, INC.
202 MACKENAN COURT
CARY, NORTH CAROLINA 27511-6447
Dear Mr. Becker:
Subject: Permit No. WQ0000088
Governors Club WWTP
Reclaimed Water Generation
and Non -Conjunctive
Utilization System
Chatham County
In accordance with your permit renewal request received October 3, 2017, and subsequent
additional information received January 25, 2018 and May 25, 2018, we are forwarding herewith Permit
No. WQ0000088 dated August 23, 2018, to Aqua North Carolina, Inc. for the continued operation of the
subject reclaimed water generation and non -conjunctive reclaimed water utilization facilities.
This permit shall be effective from the date of issuance until July 31, 2023, shall void Permit No.
WQ0000088 issued April 3, 2009, and shall be subject to the conditions and limitations as specified therein.
Please pay attention to the monitoring requirements listed in Attachments A, B, and C for they may differ
from the previous permit issuance. Failure to establish an adequate system for collecting and maintaining
the required operational information shall result in future compliance problems.
Please note the following permit conditions have been deleted since the last permit issuance
dated April 3, 2009:
➢ Old Condition I.1. — This condition has been satisfied.
Please note the following permit conditions and attachments are new or modified since the
last permit issuance dated April 3, 2009:
➢ Condition III.2. — This condition requires the Permittee to maintain an Operation and
Maintenance Plan.
North Carolina Department of Environmental Quality I Division of Water Resources I Non -Discharge Branch
512 North Salisbury Street 11617 Mail Service Center I Raleigh, North Carolina 27699-1617
919.707.3654

Mr. Shannon V. Becker
August 23, 2018
Page 2 of 2
➢ Condition 111. 19. — This condition requires the Permittee to develop and implement an
education program to inform users (including employees) about the proper use of reclaimed
water.
➢ Condition III.20. — This condition requires the Permittee to provide notification to the public
and/or employees about the use of reclaimed water and that reclaimed water is not intended for
drinking.
➢ Condition IV. 81— This condition, as a part of the maintenance log, requires the Permittee to
record all unpermitted releases of reclaimed water to surface water or to the land surface.
➢ Condition IV. 13.c. — This condition requires the Permitted to report any failure resulting in a
discharge of reclaimed water directly to surface waters or any unpermitted release of reclaimed
water to land surface greater than or equal to 5,000 gallons to the Raleigh Regional Office.
➢ Condition VI.9. — This condition notes that an expansion of the permitted facilities contained
herein shall not be granted if the Permittee exemplifies any of the criteria in 15A NCAC 02T
.0120(b) or is granted a variance by the Division Director.
➢ Attachment A — Monitoring for Total Nitrogen, Total Phosphorus and Total Kjeldahl Nitrogen
Solids has been added to the effluent monitoring requirements to be consistent with our Non -
Discharge Effluent Monitoring for Domestic Wastewater guidelines.
➢ Attachment B — The latitudes and longitudes have been updated for all fields.
➢ Attachment C — The method code for Fecal Coliform has been changed from 31504 to 31616.
Monitoring for Total Phosphorus has been added. The monitoring frequency for Volatile
Organic Chemicals has been decreased from three times a year to an annual sample that shall
be collected in November.
If any parts, requirements or limitations contained in this permit are unacceptable, the Permittee
has the right to request an adjudicatory hearing upon written request within 30 days following receipt of
this permit. This request shall 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 at 6714 Mail Service
Center, Raleigh, NC 27699-6714. Unless such demands are made, this permit shall be final and binding.
If you need additional information concerning this permit, please contact staff at [phone].
Sincerely,
6Linda Culpepper, Interim Director
Division of Water Resources
cc: Chatham County Health Department (Electronic Copy)
Raleigh Regional Office, Water Quality Regional Operations Section (Electronic Copy)
Laserfiche File (Electronic Copy)
Digital Permit Archive (Electronic Copy)
Central Files

NORTH CAROLINA
ENVIRONMENTAL MANAGEMENT COMMISSION
DEPARTMENT OF ENVIRONMENTAL QUALITY
111117.3 0 0411VII
RECLAIMED WATER GENERATION AND NON -CONJUNCTIVE RECLAIMED WATER
UTILIZATION 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
Aqua North Carolina, Inc.
Chatham County
FOR THE
continued operation of a 300,000 gallon per day (GPD) reclaimed water generation system consisting of:
Phases I and II: a 60,000 gallon aerated flow equalization tank (i.e., covered and provided with an odor
control system) with a 250 cubic foot per minute (CFM) blower, and two 175 gallon per minute (GPM)
pumps; two 100,000 GPD extended aeration wastewater treatment plants each consisting of a flow control
and splitter box, aeration tanks totaling 150,000 gallons in capacity with two 365 CFM blowers (i.e., an
extra 365 CFM blower shall serve as a reserve for both plants), multiple clarifier units with a total capacity
of 20,830 gallons, a chlorination system with two tablet chlorinators and a 3,125 gallon chlorine contact
tank, a tertiary filtration unit with dual 35 square foot (ft2) filter cells (i.e. air scour for both units provided
by a 140 CFM blower), a 5,250 gallon clearwell and two 535 GPM pumps, and a 5,950 gallon mudwell
with two 175 GPM pumps; a 45,000 gallon aerated sludge holding tank (i.e., aerated from main plant
aeration system); and all associated piping, valves, controls, and appurtenances;
Phase III: a 30,000 gallon aerated flow equalization tank (i.e., covered and provided with an odor control
system) with a 100 CFM blower and two pumps; a 100,000 gallon per day extended aeration wastewater
treatment plant, consisting of a flow control and splitter box, aeration tanks totaling 150,000 gallons in
capacity with three 325 CFM blowers (i.e., an extra 365 CFM blower shall serve as a reserve for both
plants), multiple clarifier units with a total capacity of 20,830 gallons, a chlorination system with two tablet
chlorinators and a 3,125 gallon chlorine contact tank, a tertiary filtration unit with dual 35 ft' filter cells, a
70 CFM blower, a 5,250 gallon clearwell and two 525 GPM pumps, and a 5,950 gallon mudwell with two
175 GPM pumps; a 15,000 gallon aerated sludge holding tank; and -all associated piping, valves, controls,
and appurtenances;
Servin all threePhases: an ultraviolet (UV) disinfection system; a continuous flow monitoring and
recording device; a dosing.chamber with two 280 GPM pumps to convey wastewater effluent/reclaimed
water to the five day detention pond or the irrigation pond of the reclaimed water utilization facilities; a
continuous turbidity monitoring and recording device; a telemetry system; an automatically -activated
stand-by power generation system; and all associated piping, valves, controls, and appurtenances;
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the non -conjunctive reclaimed water utilization facilities consist of: a 1.5 million gallon (MG) five day
detention pond; a 15.5 MG irrigation pond; a 15.0 MG irrigation pond containing a pump station with two
570 GPM pumps to transfer reclaimed water to the other irrigation pond; a pump station, force main, and
distribution system to utilize reclaimed water on approximately 195.68 acres of irrigation area; and all
associated piping, valves, controls, and appurtenances
to serve the Governors Club WWTP, with no discharge of wastes to surface waters, pursuant to the
application received October 3, 2017, and subsequent additional information received by the Division of
Water Resources, and in conformity with the project plans, specifications, 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 the date of issuance until July 31, 2023, shall void Permit No.
WQ0000088 issued April 3, 2009, and shall be subject to the following specified conditions and limitations:
I. SCHEDULES
No later than six months prior to the expiration of this permit, the Permittee shall request renewal of
this permit on official Division forms. Upon receipt of the request, the Division will review the
adequacy of the facilities described therein, and if warranted, will renew the permit for such period of
time and under such conditions and limitations as it may deem appropriate. Please note Rule 15A
NCAC 02T .0105(d) requires an updated site map to be submitted with the permit renewal application.
[15A NCAC 02U.0106, 02U.0109]
II. PERFORMANCE STANDARDS
The subject reclaimed water facilities shall be effectively maintained and operated at all times so there
is no discharge to surface waters, nor any contravention of groundwater or surface water standards. In
the event the facilities fail to perform satisfactorily, including the creation of nuisance conditions due
to improper operation and maintenance, or failure of the utilization areas to adequately assimilate the
reclaimed water, the Permittee shall take immediate corrective actions including Division required
actions, such as the construction of additional or replacement reclaimed water generation and utilization
facilities. [G.S. 143-215.1, 143-213.3(a)]
2. This permit shall not relieve the Permittee of their responsibility for damages to groundwater or surface
water resulting from the operation of this facility. [ 15A NCAC 02B .0200, 02L .0100]
3. All wells constructed for purposes of groundwater monitoring shall be constructed in accordance with
15A NCAC 02C .0108 (Standards of Construction for Wells Other than Water Supply), and any other
jurisdictional laws and regulations pertaining to well construction. [15A NCAC 02C .0108]
4. Effluent limitations for generated reclaimed water shall not exceed those specified in Attachment A.
[15A NCAC 02U .0300]
5. Application rates shall not exceed those specified in Attachment B. [15A NCAC 02U .0401(g), 02U
.0402(m)]
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6. The following shall be requirements for the reclaimed water distribution, storage, and utilization
facilities:
a. All reclaimed water valves, storage facilities and outlets shall be tagged or labeled to warn the
public or employees that reclaimed water is not intended for drinking. Where appropriate, such
warning shall inform the public or employees to avoid contact with reclaimed water.
b. All reclaimed water piping, valves, outlets and other appurtenances shall be color -coded, taped or
otherwise marked to identify the source of the water as being reclaimed water.
i. All reclaimed water piping and appurtenances shall be either colored purple (i.e., Panton 522)
and embossed or integrally stamped or marked "CAUTION: RECLAIMED WATER — DO
NOT DRINK" or be installed with a purple (i.e., Pantone 522) identification tape or
polyethylene vinyl wrap. The warning shall be stamped on opposite sides of the pipe and
repeated every three feet or less.
ii. Identification tape shall be at least three inches wide and have white or black lettering on purple
(i.e., Pantone 522) field stating "CAUTION: RECLAIMED WATER — DO NOT DRINK."
Identification tape shall be installed on reclaimed water pipelines in a visible manner, fastened
at least every 10 feet to each pipe length and run continuously the entire length of the pipe.
iii. Existing underground distribution systems retrofitted for the purpose of distributing reclaimed
water shall be taped or otherwise identified as noted above. This identification need not extend
the entire length of the distribution system, but shall be incorporated within 1.0 feet of crossing
any potable water supply line or sanitary sewer line.
c. All reclaimed water valves and outlets shall be of a type, or secured in a manner, that permits
operation by authorized personnel only.
d. Hose bibs shall be located in locked, below grade vaults that shall be labeled as being of non -
potable quality. As an alternative to the use of locked vaults with standard hose bib services, other
locking mechanisms such as hose bibs which can only be operated by a tool may be placed above
ground and labeled as non -potable water.
[I 5A NCAC 02U .0403 ]
7. No direct cross -connections shall be allowed between reclaimed water and potable water systems,
unless such connection has been approved by the Department pursuant to 15A NCAC 18C .0406. [15A
NCAC 02U .0403(f)]
8. Reclaimed water distribution lines shall be located at least 10 feet horizontally from and 18 inches
below any water line where practicable. Where these separation distances cannot be met, the piping
and integrity testing procedures shall meet water main standards in accordance with 15A NCAC 18C.
[I 5A NCAC 02U .0403 (h)]
9. Reclaimed water distribution lines shall not be less than 100 feet from a well unless the piping and
integrity testing procedures meet water main standards in accordance with 15A NCAC 18C, but in no
case shall they be less than 25 feet from a private well or 50 feet from a public well. [15A NCAC 02U
.0403(i)]
10. Reclaimed water distribution lines shall be located at least two feet horizontally from and 18 inches
above any sewer line where practicable. Where these separation distances cannot be met, the piping
and integrity testing procedures shall meet water main standards in accordance with 15A NCAC 18C.
[15A NCAC 02U .04030)]
11. The compliance and review boundaries are established at the property boundary. Any exceedance of
standards at the compliance or review boundary shall require action in accordance with 15A NCAC
02L.0106. [15A NCAC 02H .0219(k)(1)(C)(i)(I1I)]
12. The Permittee shall apply for a permit modification to establish a new compliance boundary prior to
any sale or transfer of property affecting a compliance boundary. [ 15A NCAC 02L .0107(c)]
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13. No wells, excluding Division approved monitoring wells, shall be constructed within the compliance
boundary except as provided for in 15A NCAC 02L .0107(g). [ 15A NCAC 02L .0107(d)]
14. Except as provided for in 15A NCAC 02L .0107(g), the Permittee shall ensure any landowner who is
not the Permittee and owns land within the compliance boundary shall execute and file with the
Chatham County Register of Deeds an easement running with the land containing the following items:
a. A notice of the permit and number or other description as allowed in 15A NCAC 02L .0107(f)(1);
b. Prohibits construction and operation of water supply wells within the compliance boundary; and
c. Reserves the right of the Permittee or the State to enter the property within the compliance boundary
for purposes related to the permit.
The Director may terminate the easement when its purpose has been fulfilled or is no longer needed.
[15A NCAC 02L .0107(f)]
15. The facilities permitted herein shall be constructed according to the following setbacks:
a. The setbacks for reclaimed utilization sites shall be as follows (all distances in feet):
i. Surface waters not classified SA: 25
ii. Surface waters classified SA: 100
iii. Any well with exception to monitoring wells: 100
b. The setbacks for treatment units shall be as follows (all distances in feet):
i. Any private or public water supply source: 100
ii. Surface waters: 50
iii. Any well with exception of monitoring wells: 100
iv. Any property line: 50
c. The setbacks for final effluent storage units shall be as follows (all distances in feet):
i. Any private or public water supply source: 100
ii. Surface waters: 50
iii. Any well with exception of monitoring wells: 100
iv. Any property line: 501
' Section 22.(c)(2) of Session Law 2013-413 exempts final reclaimed water effluent storage
facilities constructed prior to June 18, 2011 from having a setback to property lines.
[ 15A NCAC 02U.070 I ]
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III. OPERATION AND MAINTENANCE REQUIREMENTS
1. The reclaimed water generation and utilization facilities shall be properly maintained and operated at
all times. The facilities shall be effectively maintained and operated as a reclaimed water system to
prevent the discharge of any reclaimed water or partially treated effluent resulting from the operation
of this facility. [15A NCAC 02T .0108(b)(1)]
2. The Permittee shall maintain an Operation and Maintenance Plan, which at a minimum shall include
the following:
a. Description of the system in sufficient detail to show what operations are necessary for the system
to function and by whom the functions will be conducted;
b. A map of all distribution lines and record drawings of all utilization systems under the Permittee's
control;
c. Description of anticipated maintenance activities;
d. Include provisions for safety measures including restriction of access to sites and equipment; and
e. Spill control provisions including response to upsets and bypasses including control, containment,
remediation, and contact information for plant personnel, emergency responders and regulatory
agencies.
[15A NCAC 02U .0801]
Upon the Water Pollution Control System Operators Certification Commission's (WPCSOCC)
classification of the subject non -discharge facilities, in accordance with 15A NCAC 08G .0200 the
Permittee shall designate and employ a certified operator in responsible charge (ORC) and one or more
certified operator(s) as back-up ORC(s). The ORC or their back-up shall visit the facilities in
accordance with 15A NCAC 08G .0200, and shall comply with all other conditions specified in the
previously cited rules. [15A NCAC 02U .0117]
4. An operator certified by the Water Pollution Control System Operators Certification Commission
(WPCSOCC) of a grade equivalent or greater than the facility classification shall be on call 24 hours
per day. [ 15A NCAC 02U .0401(e), 02U .0402(i)]
5. A suitable year round vegetative cover shall be maintained on irrigation sites at all times, such that crop
health is optimized, allows for even distribution of reclaimed water, and allows inspection of the
irrigation system. [ 15A NCAC 02T .0108(b)(1)]
6. Adequate measures shall be taken to prevent reclaimed water ponding in or runoff from the irrigation
sites. [15ANCAC 02T .0108(b)(1)]
7. Irrigation shall not be performed during inclement weather or when the ground is in a condition that
will cause ponding or runoff. [ 15A NCAC 02T .0108(b)(1)]
8. All reclaimed water irrigation equipment shall be tested and calibrated at least once per permit cycle.
Calibration records shall be maintained at the facility for a period of no less than five years, and shall
be made available to the Division upon request. [15A NCAC 02T .0108(b)(1)]
9. The turbidimeter shall be tested and calibrated at a minimum of once per year. Calibration records
shall be maintained at the facility for a period of no less than five years, and shall be made available to
the Division upon request. [15A NCAC 02T .0108(b)(1)]
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10. Only reclaimed water generated at the Governors Club WWTP shall be utilized in accordance with this
permit. No type of wastewater other than domestic and commercial wastewater generated by the
following sources shall be treated in the wastewater treatment facilities or irrigated to the wetted areas
of the reclaimed water utilization facilities:
a. All residences within the Governors Club development;
b. All facilities within the development owned by Governors Club, Inc.;
c. All facilities within the development owned by Governors Club Property Owners Association, Inc.;
d. The North Chatham Elementary School;
e. The North Chatham High School;
f. Two residential services for the Green family; and
g. The office of Sandhills Grading & Pipe Corporation.
[G.S. 143-215.11
11. An automatically activated standby power source capable of powering all essential treatment units shall
be on site and operational at all times. If a generator is employed as an alternate power supply, it shall
be tested weekly by interrupting the primary power source. [15A NCAC 02U .0402(h)]
12. Public access to the reclaimed water generation facilities and five day upset pond shall be prohibited.
[15A NCAC 02U .0402(f)]
13. Public access to reclaimed water utilization sites shall be controlled during active site use. Such
controls may include the posting of signs showing the activities being conducted at each site. [15A
NCAC 02U.0501]
14. Diversion or bypassing of untreated or partially treated wastewater from the treatment facilities is
prohibited. [ 15A NCAC 02T .0108(b)(1)]
15. Freeboard in the 15.5 million gallon (MG) irrigation pond, the 15 MG irrigation pond, and the 1.5 MG
5 -day upset pond shall not be less than two feet at anytime. [15A NCAC 02T .0108(b)(1)]
16. Gauges to monitor waste levels in the 15.5 million gallon (MG) irrigation pond, the 15 MG irrigation
pond, and the 1.5 MG 5 -day upset pond shall be provided. These gauges shall have readily visible
permanent markings at inch or tenth of afoot increments. [15A NCAC 02T .0108(b)(1)]
17. A protective vegetative cover shall be established and maintained on all earthen embankments (i.e.,
outside toe of embankment to maximum allowable temporary storage elevation on the inside of the
embankment), berms, pipe runs, erosion control areas, and surface water diversions. Trees, shrubs, and
other woody vegetation shall not be allowed to grow on the earthen dikes or embankments. Earthen
embankment areas shall be kept mowed or otherwise controlled and accessible. [15A NCAC 02T
.0108(b)(1)]
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18. Normal operation of the wastewater treatment facilities involves conveyance of reclaimed water from
the facilities to the five-day detention pond before being further conveyed to one of the irrigation ponds
of the reclaimed water utilization facilities. During periods of normal operation, the level of reclaimed
water in the five-day detention pond shall be kept low enough such that 862,500 gallons of effective
storage volume shall be maintained at all times.
If the wastewater treatment facilities develop an upset condition for fecal coliform (daily maximum
concentration of 25 per 100 ml) or turbidity (instantaneous maximum of 10 NTU) is exceeded, the
ORC, back-up ORC, or other on -duty operator shall terminate transfer of reclaimed water/wastewater
effluent from the five-day upset pond to the irrigation ponds, and all wastewater effluent shall be
conveyed directly to the five-day upset pond. Once the upset condition has been resolved, reclaimed
water shall be conveyed directly from the wastewater treatment facilities to the irrigation ponds.
Wastewater effluent stored in the five-day upset pond shall be conveyed to the headworks of the
wastewater treatment for re -treatment. Only after all wastewater effluent that is stored in the five-day
detention pond is successfully re -treated and meets the reclaimed water quality criteria in Attachment
A, shall normal operating procedures be resumed. [ 15A NCAC 02U .0402(e)]
19. The Permittee shall develop and implement an education program to inform users (including
employees) about the proper use of reclaimed water. Educational material shall be provided to all
residents and/or other facilities provided with reclaimed water, and these materials shall be maintained
consistent with the reclaimed water uses. All educational materials shall be made available to the
Division upon request. [15A NCAC 02U .0501(a)(4)]
20. The Permittee shall provide notification to the public and/or employees about the use of reclaimed
water, and that reclaimed water is not intended for drinking. Such notification shall be provided to
employees in a language they can understand. [15A NCAC 02U .0501]
21. The residuals generated from the wastewater treatment facilities shall be disposed or utilized in
accordance with 15A NCAC 02T .1100. The Permittee shall maintain a residual management plan
pursuant to 15A NCAC 02U.0802. [ 15A NCAC 02T.1100, 02U.0802]
IV. MONITORING AND REPORTING REOUIREMENTS
1. Any Division required monitoring (including groundwater, plant tissue, soil and surface water analyses)
necessary to ensure groundwater and surface water protection shall be established, and an acceptable
sampling reporting schedule shall be followed. [15A NCAC 02T .0108(c)]
2. A Division certified laboratory shall conduct all laboratory analyses for the required effluent,
groundwater or surface water parameters. [15A NCAC 02H .0800]
3. Flow through the reclaimed water generating facility shall be continuously monitored, and daily flow
values shall be reported on Form NDMR.
The Permittee shall install and maintain an appropriate flow measurement device to ensure the accuracy
and reliability of flow measurement consistent with accepted engineering and scientific practices.
Selected flow measurement devices shall be capable of measuring flows with a maximum deviation of
less than ten percent from true flow; accurately calibrated at a minimum of once per year; and
maintained to ensure the accuracy of measurements is consistent with the selected device's accepted
capability. The Permittee shall maintain records of flow measurement device calibration on file for a
period of at least five years. At a minimum, documentation shall include:
a. Date of flow measurement device calibration,
b. Name of person performing calibration, and
c. Percent from true flow.
[ 15A NCAC 02T .0105(k)]
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4. The Permittee shall monitor the reclaimed water from the generating facility at the frequencies and
locations for the parameters specified in Attachment A. [15A NCAC 02T .0108(c)]
5. The Permittee shall maintain adequate records tracking the amount of reclaimed water utilized.
Records shall be maintained for a minimum of five years. At a minimum, these records shall include
the following information for each utilization site listed in Attachment B:
a. Date of reclaimed water utilization;
b. Volume of reclaimed water irrigated;
c. Site irrigated;
d. Length of time site is irrigated;
e. Continuous weekly, monthly, and year-to-date hydraulic (inches/acre) loadings;
f. Weather conditions; and
g. Maintenance of cover crops.
[15A NCAC 02T .0108(c)]
6. Freeboard (i.e., waste level to the lowest embankment elevation) in the 15.5 million gallon (MG)
irrigation pond, the 15 MG irrigation pond, and the 1.5 MG 5 -day upset pond shall be measured to the
nearest inch or tenth of a foot, and recorded weekly. Weekly freeboard records shall be maintained at
the facility for a period of no less than five years, and shall be made available to the Division upon
request. [15A NCAC 02T .0108(c)]
7. A record shall be maintained of all residuals removed from this facility. This record shall be maintained
at the facility for a period of no less than five years, and shall be made available to the Division upon
request. At a minimum, this record shall include:
a. Name of the residuals hauler;
b. Non -Discharge permit number authorizing the residuals disposal, or a letter from a municipality
agreeing to accept the residuals;
c. Date the residuals were hauled; and
d. Volume of residuals removed.
[15A NCAC 02T .0108(c)]
8. A maintenance log shall be maintained at this facility. This log shall be maintained at the facility for a
period of no less than five years, and shall be made available to the Division upon request. At a
minimum, this log shall include:
a. Visual observations of treatment plant and plant site;
b. Date of calibration of flow measurement device(s);
c. Date of calibration of turbidimeter;
d. Date and results of power interruption testing on alternate power supply;
e. Record of preventative maintenance (e.g., changing/adjusting of equipment, pump and valve
maintenance, cross connection control, testing, inspections and cleanings, etc.); and
f. Record of all unpermitted releases of reclaimed water to surface water or land surface including
date of occurrence, estimated volume of release, cause, and corrective action taken.
[15A NCAC 02T .0108(b)(1)]
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9. Three copies of all effluent monitoring data and reclaimed water distribution data (as specified in
Conditions IV.3. and IVA.) shall be submitted on Form NDMR for each PPI listed in Attachment A.
Reporting forms shall be submitted on or before the last day of the following month. If no reclaimed
water distribution activities occurred during the monitoring month, monitoring reports documenting
the absence of the activity are still required to be submitted. All effluent monitoring data shall be
submitted to the following address: Division of Water Resources, Information Processing Unit, 1617
Mail Service Center, Raleigh, North Carolina, 27699-1617. [15A NCAC 02T .0105(1)]
10. Three copies of all operation and utilization records (as specified in Conditions IV.5. and IV.6.) shall
be submitted on Form NDAR-1'for every non -conjunctive utilization site listed in Attachment B. (Note:
conjunctive use sites do not require NDAR-1 submission). Reporting forms shall be submitted on or
before the last day of the following month. If no reclaimed water utilization activities occurred during
the month, monitoring reports are still required documenting the absence of the activity. All
information shall be submitted to the following address: Division of Water Resources, Information
Processing Unit, 1617 Mail Service Center, Raleigh, North Carolina, 27699-1617. [15A NCAC 02T
.0105(1)]
11. Monitoring wells shall be sampled at the frequencies and for the parameters specified in Attachment
C. All mapping, well construction forms, well abandonment forms and monitoring data shall refer to
the permit number and the well nome...nclature as provided in Attachment C and Figure A. [ 15A NCAC
02T .0105(m)]
12. Two copies of the monitoring well sampling and analysis results shall be submitted on a Compliance
Monitoring Form (GW -59), along with attached copies of laboratory analyses, on or before the last
working day of the month following the sampling month. The Compliance Monitoring Form (GW -59)
shall include this permit number, the appropriate well identification number, and one GW -59a
certification form shall be submitted with each set of sampling results. All information shall be
submitted to the following address: Division of Water Resources, Information Processing Unit, 1617
Mail Service Center, Raleigh, North Carolina, 27699-1617. [15A NCAC 02T .0105(m)]
13. Noncompliance Notification:
The Permittee shall report by telephone to the Raleigh Regional Office, telephone number (919) 791-
4200, as soon as possible, but in no case more than 24 hours, or on the next working day following the
occurrence or first knowledge of the occurrence of any of the following:
a. Treatment of wastes abnormal in quantity or characteristic, including the known passage of a
hazardous substance.
b. Any process unit failure (e.g., mechanical, electrical, etc.), due to known or unknown reasons,
rendering the facility incapable of adequate wastewater treatment.
c. Any failure resulting in a discharge of reclaimed water directly to surface waters or any unpermitted
release of reclaimed water to land surface greater than or equal to 5,000 gallons. Unpermitted
releases less than 5,000 gallons to land surface shall be documented by the Permittee in accordance
with Condition IV.81 but do not require Regional Office notification.
d. Any time self-monitoring indicates the facilities permitted herein have gone out of compliance with
the limitations contained in this permit.
e. Ponding in or runoff from the reclaimed water utilization sites.
Any emergency requiring immediate reporting (e.g., discharges to surface waters, imminent failure of
a storage structure, etc.) outside normal business hours shall be reported to the Division's Emergency
Response personnel at telephone number [phone], [phone], or [phone]. Persons
reporting such occurrences by telephone shall also file a written report, in letter form within five days
following first knowledge of the occurrence. This report shall outline the actions taken or proposed to
betaken to ensure the problem does not recur. [15A NCAC 02T .0108(b)(1)]
WQ0000088 Version 4.0 Shell Version 180711 Page 9 of 11

V. INSPECTIONS
1. The Permittee shall provide adequate inspection and maintenance to ensure proper operation of the
reclaimed water generation and utilization facilities. [15A NCAC 02T .0108(b)]
2. The Permittee or their designee shall inspect the reclaimed water generation and utilization facilities to
prevent malfunction, facility deterioration and operator errors resulting in discharges, which may cause
the release of wastes to the environment, a threat to human health or a public nuisance. The Permittee
shall maintain an inspection log that includes, at a minimum, the date and time of inspection,
observations made, and any maintenance, repairs, or corrective actions taken. The Permittee shall
maintain this inspection log for a period of five years from the date of the inspection, and this log shall
be made available to the Division upon request. [15A NCAC 02T .0108(b)]
3. Any duly authorized Division representative may, upon presentation of credentials, enter and inspect
any property, premises or place on or related to the reclaimed water generation and utilization facilities
permitted herein at any reasonable time for the purpose of determining compliance with this permit;
may inspect or copy any records required to be maintained under the terms and conditions ofthis permit,
and may collect groundwater, surface water or leachate samples. [G.S. 143-215.1]
VI. GENERAL CONDITIONS
1. Failure to comply with the conditions and limitations contained herein may subject the Permittee to an
enforcement action by the Division in accordance with North Carolina General Statutes 143-215.6A to
143-215.6C. [G.S. 143-215.6A to 143-215.6C]
This permit shall become voidable if the permitted facilities are not constructed in accordance with the
conditions of this permit, the Division approved plans and specifications, and other supporting
documentation. [15ANCAC 02T .0110]
3. This permit is effective only with respect to the nature and volume of wastes described in the permit
application, Division approved plans and specifications, and other supporting documentation. No
variances to applicable rules governing the construction or operation of the permitted facilities are
granted, unless specifically requested and approved in this permit pursuant to 15A NCAC 02T .0105(n).
[G.S. 142-215.1]
4. The issuance of this permit does not exempt the Permittee from complying with any and all statutes,
rules, regulations, or ordinances, which may be imposed by other jurisdictional government agencies
(e.g., local, state, and federal). Of particular concern to the Division are applicable river buffer rules in
15A NCAC 02B .0200; erosion and sedimentation control requirements in 15A NCAC Chapter 4 and
under the Division's General Permit NCGO 10000; any requirements pertaining to wetlands under 15A
NCAC 02B .0200 and 02H .0500; National Pollutant Discharge Elimination System (NPDES)
requirements under 15A NCAC 02H .0100, and documentation of compliance with Article 21 Part 6
of Chapter 143 of the General Statutes. [15A NCAC 02T .0105(c)(6)]
In the event the permitted facilities change ownership or the Permittee changes their name, a written
permit modification request shall be submitted to the Division. This request shall be made on official
Division forms, and shall include appropriate property ownership documentation and other supporting
documentation as necessary. The Permittee of record shall remain fully responsible for maintaining
and operating the facilities permitted herein until a permit is issued to the new owner. [15A NCAC
02T .0104]
6. The Permittee shall retain a set of Division approved plans and specifications for the life of the facilities
permitted herein. [15A NCAC 02T .0108(b)(1)]
7. The Permittee shall maintain this permit until all permitted facilities herein are properly closed or
permitted under another permit issued by the appropriate permitting authority. [15A NCAC 02T
.01050)]
WQ0000088 Version 4.0 Shell Version 180711 Page 10 of 11

8. This permit is subject to revocation or unilateral modification upon 60 days' notice from the Division
Director, in whole or part for the requirements listed in 15A NCAC 02T.01 10. [ 15A NCAC 02T .0110]
9. Unless the Division Director grants a variance, expansion of the permitted facilities contained herein
shall not be granted if the Permittee exemplifies any of the criteria in 15A NCAC 02T .0120(b). [15A
NCAC 02T.0120]
10. The Permittee shall pay the annual fee within 30 days after being billed by the Division. Failure to pay
the annual fee accordingly shall be cause for the Division to revoke this permit. [15A NCAC 02T
.0105(e)(3)]
Permit issued this the 23`d day of August 2018
NORTH CAROLINA ENVIRONMENTAL MANAGEMENT COMMISSION
d -Linda Culpepper, Interim Director
Division of Water Resources
By Authority of the Environmental Manag ent Commission
Permit Number WQ0000088
WQ0000088 Version 4.0 Shell Version 180711 Page 11 of 11

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BY
DATE 01/18
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uU4 L J 2 852 — (eVt=izy2&
• SENT BY :
2-25- 4 ; 9:08AM ; 9199328529;* 2/14
AMENDED AND RJEST'ATED WASTEWATE9-IR ti ATION AGREEMLEN Ii`
This AMENDEIJ AND RESTATED WASTEWATER IRRIGATION'AGREENvMNT- is
made and entered into as of the � y, of %S & P_ jA62Z , 2003 (the ; Ef kWv_e Date"), by and
! ..: among (i) Go-M'ernors Club Limi ed Partnership, a Delaware Limited $artr►efabip ("Cs LPA'), (ii)
ernors. Club, Inc., a North Carolina nonprofit corporation.*( Ca+CI maArs Qdb
-Nners Assn` atiou, Icie., a North: Carolim aoAPmfit corpozatiOU (the •"E0A').
(GULP,15a, ah d the POA are sometimes referred to herein each individually as,a `[ "and
collectively as the "Lartie .") -
.r
t, Rg"A5, the Patties are all of the parties to a certain Wastewater Inigatioo.
Agreement, dated as of January 1, 1996 (the- ",Ogri iuel Agreement'"), regarding *the treatment,'
disposal, and discharge of offi'aent emanatitsg from within a certain planned trait development
located .in WilliuW TownShip, Chatham County, North Carolina and commonly luto'vn as
"`Governors Club" (the `Tgvelor2rneut'Xand
WHI✓REA9, the .Parties desire to teaminate the Original. Agreement and amend and
restate their respective rights and obligatiozxs with respect to the subject matter then eof and
further desire'to accept the terms and provisions of this Agreement in lieu of the terms' and
provisions of -the Original ABreemeat.
NOW, THBREFORV, in consideration' of good and v4lw6le consideration, the r=eipt
and sufficiency of which is hereby acknowledged, the Parties hereto, int�ding to be legally
bound, agree as follows:
1. Definitions
1.1 "Agreezn t' sbrall mean this Ame�nded and Restated Wastewater
Irrigation Agmement, including all exhibits and schedules, hereto. -if apy, as may be amended
from time to time.
1.2 " j)eveloprnanV' shall have the meaning Set forth. in the Recitals to this
,agreement.
1.3 "DW " shall mean the Division of 'Water Quality of the North Carolina
Department of Environment and Natural Resources.
- _ 1.4",effective Date" shall have the meaning set forth in the Preamble_to this
Agreement_ w
1.5 "_`xccsTreated Wastewater" shall bane the weal ing set forth in Section
2-5 hereof.
1.6 "CACP' shall have the meaning set forth in the'Prcamble to this Agmemen<<
1.7 "GC'I Proper" shall mean all of the real pxopmty owned by GCI.

a .isi iii auu� to. dG rAA 010 VJZ 6629 ravernorS C7is�Ub *A-
I
SENT BY: 2-25- 4 ; 9:080 9199328529;# 3/14
1.8 "GCLP" shall have the meaning set forth in the Preamble to this
. A�7eeri'�ent. �
'J.9 "GCLP Pronenv" shall mean all property awaed.,by.gCLP that has been
permitted by DWQ for spray irrigation with Treated Wastewater (as dcRiked Below).
1.10 "Golf 'shall meall the golf course and appurtenant areas owned by
GO.
1.11 "l QUC" shall mean the North Carolina Utilities Commission..
1.12 '°Original Agreemeyt" shall have the meaning set forth in the recitals !o .
this Agreement.
In "Parti' apd larties°" shall have the meanings set forth -in the Preamble to
this Agreement -
1.14 "Permit" shall mean the permit for open 600 of the Wastewater Treatment
System and Spray Irrigation Faaiiitics issued by DWQ, as the same P=y be modified or rear --wed
from time to fame.
1.15 "Plgz f shall mean the wastowater treatment plant located within the
Developmeoot
1.16 "—.PDX' shah have, the meaning• set forth in the Preamble to this
Agreement.
1.17 "POA Property" shall mean 'all of the real property vAthirn the
Development drat has been dedicated ox otherwise ron'voyed to the POA.
1.18 1'k mpini,: Station°' shall zman � certain pumphouse that is iocaied
adjacfmt to the Wet -Weather Storage Pond, the function of which, is to pump Treated Wastewater
to and through the Spray Irrigation Facilities (as deitned below).
1.19 "_Second Prower Line-&ce shall have the meaning set 'Fmtb in Sectilon
2.3(a)(i) herfof:
1.20 "Svray Areas" shall mean all areks of the GCLP Property, GCI Property,
POA Property, and other land upon which GCLP has obtained or obtains a Permit to dispose of
Treated. Wastewater through the process of spray irrigation.
1.21 ""Slimy Irrigation Facilities" shall mean all water lines, pumping stations,
pumps, baoAer Pum Ps, krigatian and spray devices, controls and other devices used in, the
appIzoatian of''re4ited Wasteuiatzr foxn the Wastewater Tzeatrnert System upon the SprayArea;
together with all appurtenant easements.
1.22 °"�, Irrivation Facilities_ Maintenance Fee" skull mean the fee specified
in Section. 2.4 hereof
PAGE 2 OF 13

Governors Club POA
S -NT BY :-- - : -o fi d-
2-25- 4 9 08A14i 9195328529;# 4/14
1.23 "Suoeriniendent" shall meati the superintendent of the Golf Course.
124 "Third Po= Liffe Area" shall have the meaning sei forth in Section
1.,25 ITTcated'Wastewater" shall mean tho wastewater; that has been treated by
GCLp to the paint that it meets all quality standards required by the Permit.
1.26 ' "Wastewater TreatmeW tam".'.shall mean the Plant, the coliectioA
system that delivers wastewater to the Plant, the holding ponds, ponds, monitoring wells;- and
Other facilities used in the eolleetioN treatment, holding and discharge of the wastevvafer except
"? ; ',pray Irrigation Facilities.
1.27 'Wet -Weather StopPond" shall mean the facility designed to store
Treated 'Wastewater (as defined abovo) that is available for spraying via the Spray Irrigation
Facilities (as defined above).
2, GCLP Oblisadaw and Agreements
2.1 gperation snA Maintenance of -tbe Wastewater T� matrnent Viten-t Qom, -
shall Operate atnd tns nWn the Wastevmter Treatment System as required by the Pen -nit and in a.
ruaMor consistent with this AgceciteM and with all .applicable laws, regalatians, and ordinances,
including, without limitation, taking such actions as.are necessary to ensure that the Treated
-
'­Tas,4 va%ter produced by thy` Wastewater Treatment System complies with the .Perinit and all
applicable standards. ,
2.2 Cap aaitK of 16�aslewater Treatment System and Uri twion of Users.
GCLP herewith reconf=s its existing obligation to provide' wastewater treatment scrvioes to all
re_I'dents of the 1)evelopxotnt, including at least 1,200 single-family residential, customer
connections. GCLP shall not provide wastewater tlreatinent scrvicts to any person or entity other
than residents of the Development, GCI and POA. facilities, I`Tortlx Chatham School
residents of the homes now or f`armerly occupied by the Green Family (two, services), the office
now occupied by Sandhills Grading & Pipe Corporation, and the potential North Chatham 'high
1001 (9-12).
2.3 Pemdttm21and Construction of 1'mprovements to the 'Wastewater
Treatment System and Spm Ir�ri ation Facilities.
(a) GCLP shall, as part of the ranew,al and modification of the Pcrmit
(i) canstract and operate spray irrigation facilities on an
additional. approximately 36 acres of spray irrigation facilities in Duke Power
right -of w'ay, with a alioimum elfeotivc (Le, wettable) spray area of a net
additional 20 -acres (the "Second Powor Line Area ');
PAGE � or 13

--. ---- -mei .-c .1V VOA ouea
SENT
2-25-
., 'mss• r, �• "+
Governors Llup YUA [ ppp
9:09A1M -4 9199328529,# 5/14
.a X
(ii) construct and operate a net additio;tal 13.5 effective spray
acres' on the Golf Course and adjacent sboulder•areas, including POA Property,
and
(iii) make any improvements iSquired to allow usage of the
entree existing permitted Spray sA.reas for spray in igationc
(sCLP shall begin construction of the foregoing improvements within 30 days of I)WQ
approval thereof and complete construction and place the facilities into-opgraiiora , iz� �a
timely =anner;F rayided, however, that rehahiliiation or repairs for which -no permit
modification is required to allow usage of'existing permitted areas for spray irrigation
shall commence within 60 days of the Effective Date.
(b) GCLP further shall make the following improvements to the Spray
Irrigation Facilities in a timely manner (to the extent that D'1rd'Q-approval for,_Mc'h
improverAents is required GCLP shall seep such approval as part of the rvaevval and
modifieatiaza of the Permit):
(i) Add computer controls to allow remote operation of all
spray irrigation facilities, iucluding both new and existing facilities;
(ii) Add piping to allow delivery of Treated Wastewater to the . ,
power tine areas independent of the fresh water irrigation system;
(iii) Modify thr, 'Wet Wea$er Storage Pond to maximize and
improve drawdown. through the following:
(aa) const ation of larger bottom intake or installation
of one or more additional submerged intakes with piping of sumcient size
to accopimodate additional capacity;
(bb) irastanaation of a floating intake.
(c) GCLP sbalI place under contract within 60 days of the Effectivc
Date and shall purchase -by May 31, 2004, an identified axes. of lAnd composed of ars
additional approximately 53.4 acres currently owned by Dukc Power, with a ni nim�am
effective (wettable) spray area of a net additional 38 acres (the 'Third -Power Line
Ang!,), provided Duke Power is willing to sell such land at prevailing matket rates and
sails testing -confirms that the land is suitable far spray irrigation W accordance' with
(d) GCLP shall seek inclusion, in the. Permit upon renewal and
modification a condition requiring GCLP to obt* all necessary permits and subnait to
DWQ approvable plans and specifications for the const3ruction of an additional
I5,000,o0o -gallons of wet. weather storage capacity pxior to average flows to the
Wastewater TreatmEjit System exceeding 90,000 gallons per day fox- three eonseautiv'e
rnouths- GCLP further shall comply with such permit condition and complete
coz]structi,on of, and place into operation, the additional $forage capacity in a timely
PAGE 4 of 13

Uovernors Lluo YUA
2-25- 4 ; 9:09AM ;
00i
9199328529;# 6/14
fashion following approval of the plans and specifications by DWQ. Additional storage
capacity shall be added without effecting a net decreaselin wettable acreage; to the extent
necessary to achieve this goal, additional wettable acreage in the Dupe Power right -of
way or the Golf Course shoulder areas will be added to the -Spray Irrigation Facilities in
conjunction with the construction of the additions) wet weather aoraje capacity required
by ties section_ J
(e) GCLP shalt seek inclusion in the Permit upon 'renewa'l and
o odif;ication a condition requiring GCLP to pbtain all necrossaty perm s and submit to
DWQ approvable plans and specifications for coristructibn of spray irrigation facilities 'M'
whe Third Power Line Area, or for the construction and operation of a'wastewater
discharge system to serve comparable flow, prior to average flows to the Wastewater
Treatment System exceeding 125,000 gallons per day for three consecutive months,
©GT -F fiuther shall comply with such permit catidition and to complete construction of,
and place into operation, any required construction of the additional spray irrigation or
discbuge facilities in a timely fashion following -approval of the plats and specifications
by DWQ,
M GCLP shall seek inclusion in the Permit upon renewal, and
modification a condition requiring GCLP to obtain all necessary permits and su'brnit to
DWQ approvable plans and' specifications for the construction of an additional
10,400,000 gallons of wet weather etorage capacity prior to average flows to the
Wastewater Treatment System exceeding 180,000 gallojna per day for three consecutive
months. GCLP further shall comply with such permit condition and to complete
construction og and place into operation, the additional storage capacity in a timely
fashioaa following approval of the plans and specifications by DWQ. Additional storage
capacity shall be added without effecting a net decrease in wettable acreage.
(g) Prior to average flows to the Wastewater Treatment System,
exceeding 160,000 gallons per day for three consecutive months, GCLP will prepare and
subraii to GCI and POA an Exrgineering .Alternatives Analysis detailing potential
alternativrs for disposal . of treated effluent above 180,000 gallons per day, aMd
identifying a preferred alternative for implementation. No later than. 60 days after a
preferred alternative for disposal of tr6ated effluent above 180,000 gallons per day has
been. identified, GCLII shell seek regulatory approval of such alternative and to
irnplement such alternative in a timely fashion upon receiving saeh approval. .
2.4 Berney Inivation Facilities Maiuten=ce Fee.'
',' '---ts�—"ii'C•L'P-"si�inlnr-I.-�pa}�'°to''gation Facititie5—'—
,Maintmance Fee is the amount of $12?160 per year, paid in monthly payinents bf'$1,030
on the 101h day of each month following the month in which maintenance services are
provided by GCZ, until such fee is modified pursuant to Section 2.4(b) of this Agrenement,
(b) GCLP shall increase the annual Spray Irrigation Facilities
Maintenance Fee pAid to GCT to $75,000 per year, paid in moat) ly.paymants of $6,250
on the 10"' day of each month following the month in which maintenance services are
PAGE S OF 13

��_ _�•�� ltib ata ave Data (governors Club POA
2Y,9-25-.4 ; 9:09AM - - 9199828523;# 7/14
provided by GCI, with an adjustment every five years on July l based 'on the corisuiner
price index published by the United States Department of Labor, upon the earlier of (i)
approval by NCUC of revised utility Fates set at a level sufficient to'allow for the full.
rmo-ver Y in rates of such increased fee, or (ii) the assumption by GCJ bf maintenance of
the Second Power Line Area. GCLP shall further increase the fee proportionally to the
added rpaintenanee costs associated with the Third Power line,Asea or other additional
spray irAgation facilities upon the earlier of (J) approval by NCUC of revised utility rates
set at a level sufficien.t to allow for the full recovery in rates of such increased fee, or (ii)
the assumption by GCI of maintenance of the Third Power Line or other additions„]. Spray
irrigation facilities. The purpose of the Spray Irrigation Facilities to
compensate GCI for services it provides to GOLF in maintaining the Spray Irrigatian
Facilities, including but not limited to those services listed in Exhibit A. to this
Agreement.
2.5 Sunnly of Treated Wastewater. GCLP shall provide, to, GCI ,the first
32,850,000 gallons of Treated 'Wastewater per year produced from the Wastewater Treatment
System, for Golf Course irrigation at no charge to GCL GCLP shall further provide to GCI any
Treated Wastewater in excess of 32,850,000 gallons per year ("Excess Treated Wastewater') for
Golf Course "gation.ai no charge to GCI, unless GCLP cashow that it lass, a cornr�aerc�ial use
for Excess 'bested Wastewater, which includes either (i) sale of Excess 'Treated Wastewater to
am unrelated third party or to a related thirii party in an arm's length transaction; or (ii)
comet tial ttse of Excess Treated Wastewater by GCLP or a rolated entity,, In asci- - event;
trCLP'shau provide GCI a Fi& of first refusal to purchase Excess Tre$ted Wastewater at the
lesser of'(1) a'prioe equal to 75% of the -Chatham, County base water rate, or (iu) the price offered
a prospective third -party purchaser, if any. The price paid by GCI for Excess Treated .
b'+laatewaier pursuant to this section shall be subject to approval by the NCUC, This provision in,
_c Vv -y a feats the obligation of GCI to accept Treated Wastewater purstta�t to Section 3 below,
not does it obligate GCI to pay for wastewater that GCI is obligated to accept pursuant tv Section
3 of this AgreeMetat
3.1 GCI Gbli ation and A reernenrs
3,1 operation and Ma. Ig an nee of Spay Irrigation► Facilities. Its consideration
of the paymeds of the Spray Facilities Maintenance Fee, GCI shall operate and maintain the
Spray Lrrigation -facilities, including all pumping stations and arty now facilities added pursuant
to the Pernnit and/or this Agrmmeht, in a manner consistent with the Permit, this Agreement; and
all applicable laws, regulations, and ordina tes.
3.2 Avee4 tancE: of Treated 'Wastewater. GCI shall accept for irrigation and to
�- as erse,to peNIO IT Liu rhddes of
Treated Wastewater.
(a) Up to 32,850,000 gallons* atulually upon execution of this
A,greenaent;
PAae 6 OFF 13

�i lei AUu4 .L,>:44 rPI M1a UjZ_dbZ9 _Governors ClilE, ;i
2-25- 4 9:10AM 91.99328629;# 8/14
(b) ' Up to 34,300,000 gallons annually when the Second, Power- Line
Area is permitted and placed into service and other Improvemcnts listed in Sections
2_3(a) and 2.3(b) are completed and placed into service;
(c) UP to 45,900,000 gallons annually whets ' the storage pond
described in Section 2.3(d) is completed and placed into service;','
(d) Up to 66,700,000 gallons annually when the 'third 'Power Lute
Area; or discharge facilities to serve comparable flow, is placed into service; and
(e) Such additional quantities of Treated Wastewater as mutually
agreed upon by GCLP and Gd pursuant to negotiations in accordance with Section
2.3(g) hereip-
4. Easeme�G . Contempoianeously with the execution of the Agreement,
CI;P and'POA shall convey to GCI, its successors, and assigns in the form attached hereto as
Ex_. -bit B a nvn-exchisive easement over GCLP Property and POA Property included in, tit
Spray Areas or to which. any of the Spray lr g tion Facilities axe affixed fb purposes of
nstailin& inspecting, replacing, repairing, operating and/or maintaining; such appurtenances or
facilities as may by necessar, y to perfoma; its obligations as set forth herein,
5. Easement to G( -'LP. Contemporaneously with the execution of the Agreement,
GCI and POA shall convey'to GCLP, its successors and assigns in the form attached hereto as
Exhibit C a non-exclusive easammt for ingress and egress over GCI;. Property and POA, )?xoperty
and for use, operation -and nWntenamt: of the Spray Irrigation Facilities for the pulposes of
discharging Treated WastriWater via the Spray Irrigatioxx Facilities in accordance with the tcrgns
cf, :he permit and this Agreement, performing wastewater testing, taking soil samplings, borings
and 3nakingg other examination,9.
(; $prsy ProfuccrlS. The Parties sball•work cooperatively to develop protocols for
the operation of ttre Spray Irrigation Facilities (the "Spray Protocols'), including, at a mb irnum:
(a) The recommended time, sequence, amd/or amount of spray events.
(b) Management objectives for wet weather storage pond volumes,
with a goal of bringing storage volumes as low as possible by November 1 of each
calendar year.
(c) - The circumstances and conditions under which GO shall perform,
and is not required to l)erfmWI, sPraY events.
(d) GO's obligations to report spray irrigation events to GCLP, to
notify GCLP of other specified events and conditions, and to collect relevant data .
(incl'uding wet weather storage pond volumes) and report such data to GCLP.
(e) GCLP's obligations to report daily volumes treated on a rnbiithly
basis to GCT at the same time it submits these data to DWQ.
PAGE 7 OF 13

1�.X.VUI* moo Oe rsn ntv ajc bozo Governors Club POA -
3D7 EY: 2-,25- 4 9:19AM 3199528529;# 9/14
(t) Formats of reports that GCLP will use to provide data to DWQ
Cequired by the Permit, as well as any additional reports lbetw,een the Parties.
. (g) Flexibility for the Superintendent to achieve the goals. of the Spry
Protocols while }responding to muiurance Deeds Qf plants and' grads and/or individual
surface or weather conditions.
(h) The Parties shall negotiate in good faith to develop tniitually-
$r,Ceptable Spray Protocols,
T Utilin, hate Increases. GO and POA acknowledges that GCS' intends to seek,,
but GO and POA xeset-ve the right to oppose, except as set forth below, the following -(j) an,'
immediate increase in utility rates charged by GCLP to its ratepayers to reflect the increased
casts in providing wastewater treatment services since the rates were established in,1.989, as wel l
as certain of the costs of finplezmenting this Agreement; and (it) one or mare additional incrftses
in rates to allow for recovery of the remaining costs of implementing this Agreement (as* well as
w�y other future increases in the 'cost of providing wastewater treatment services). with respect
to such reuested iat,e increases, GCI and POA agree not to oppose or to encouiuge thea
members to oppose:
(a) An immediate increase in the tap fee from $3,45Q to $4,500,
(b) An immediate increase in the availability fee ii"6m $10 to $15 per
month.
(c) An immediate increase in the monthly usage fcc, not to exceed
$91month, to recover the costs of the increased Spxay Irrigatiatt Facilities Mainteinarice
Fee pursuant to this Agree umt.
(d) Subsequent increases in the monthly tiisage fee for adclitional costs,
of implementing this Agreement, As a guideline for anticipated -increases,tiCLP has
provided a good faith estimate of between $5 and $6 per month 'resulting fxorn the
construction of additional wet weather storage pond capacity and acquisition and upfit of
additional spray irrigation acreage required under this Agreement.
(e) The, fee for treated wastewater pursuant to Section 2.5 of this
Agreement.
g_ m3rellaneous
-- 1�:�--i�a:rttr�A�ssttrances-and-�aLe+ons.�Fhe-�'arti�-s-hereto..ahat%-wi�nut
consideration, promptly take such other actions following the execution and delivery Of this
Agreement and execute and deliver such other documents as the other Pm -6 , hereto may
zsasona6ly request in order to consuzamate the transactions contemplated by, and give effect to,
this Agreement The Parties further shall work cooperatively (i) to seek and support the issuance
of the pormit consistent with the terms of this Agreement; (ii) to oppose any permit terns,
condition or action that is inannsistent with this Agreement; and (iii) to, seek expedited appTaval
PACE 8 OF 13

��....j rIId ntv u04 0DZU (4overnors Club POA _._ .. a (}i
SENT 6: 2--25- 4 9:10AM i 9199828529;#10/14
y
by DWQ for the construction and operation of additional spray irrigation facilities in the area
dcficd below as the "Second Power Line Area." ' I .
8.2 Notices. Any and all notices or other sem Munications required or
permitted hereunder shall be in writing and. shall be detiver9d personally by hand or by
recognized overnight courier, 'telecopied or mailed (by registered & certified =oil, postage
prepaid) to the Parties hereto at floe fbHowing addresses:
To GCLP: Governors Club Limited Partnership
130 Edinburgh, Suite 204
Cary, NC 27511
Waith a copy to: Steven I Levitas, Esq.
Kilpatrick Stockton LISP
3737 Glenwood Avenue, Suite 400
1t4leigh, NC 27612
To GCI: Governors Club, Inc.
11000 Governors Drive
Chapal %rill, NC 27517
With a copy to; Charles D. Casc, Esq.
Hunton & Wini=ng
P.O. Box 109
Raleigh, NC 27602
To POA: Mike, Apperson
t. President, Governors Club FOA
10134 Govemolrs Drive
Chapel Hitt, NC 27517
With a copy to: I Clark Brewer
Young Moore and Henderson P.A.
3141 Glenwood Avenue
Raleigh, NC 27612
Eacli such notice or other communication shalt be effective (i) if given by telecopier, when such
telecopy is iransmitted to the telecopior number specified above (with confirmation of
_ __�,�_, � �n),_nx•(iij if o,�•ven by any other means., when delivered,at the.address specified above;- _
provided, a copy thereof is concurrently mailed to the intended reciOe l(s) ,Ibcreof by fast class
mail, postage prepaid. .Any Party by n.oiice given in accordance with -this section to the other
parties way designate another address (or telecopicr number) for receipt of notices hereunder,
Notices by a Party may be given'by counsel to such Party.
8.3 j2elationsltip to fictions by UVVC{ and NCUQ. No Pavy sY�all be obligated
to take any action pursuant to this .A,grcement (i) which requires approval by DWQ or NCUC
unless such approval is provided; (13) which would be in violation of a DWQ permit, an NCUC
PAGE 9 OF 13

-��= LJ. JJ ani nla nit aaGa Liovernors Club POA `
SENT BY: 2-25- 4 ; 0:11AM 9199328525411/14
order, or any applicable law or regulation; or (iii) which would be rcndefed irnpmetical or
unlawful as a result of an action by DWQ or NCUC. i
SA Tlpdemnitie& F-aFh Party shall indenmifythe atherf agOnst any third -party
cldirns arising out ofthe indemnifying Party's breach of its obligations under ibis Agreement,
8,5 Pollution Liebrfity Insurance, GCLp and GCZ each sh411 maintain
pollution liability insurmce coverage at least as broad as the coverage they currently have, which
they each represent to include,a minimum policy limit of $S milliow the purchase of wh,igt� the
parties agree to be a reasonable, necessary and prudent cost of operating the Wastewater
Treatmdnt System. Binders for such insurance as were meld as of the elate of tMe A.greemerxt are
s,Lacbvd heroto as Attachments D and E and incorporated by reference.' GCLP, and GCl each
shall provide to the other oertliicatcs of insurance any time any such coverage changes and, in
any event, on an annual basis, beginning one year after the signing alter this agreement.
8.6 fit
.ice _of K&M and Specific Performance. This Agreement shall be
nferprsted under the laws of the State of North Carolina and enforced in the courts of North
Carolina, which are hereby agreed to be an appropriate venue for any action arising out of this
Rgre=ent. Without Hmiting the remedies that may be available to arty party to :this Agreement
at law or, equity or under statute, the Parties agree that the following provisions are material to
this Agreement, the, breach of which can cause irreparable harm: (i) GCLP's permitting and
eanstruoti:on of itmprovenaents to the Wastewater Treatment System and Spray lrzagatiotr
Facilities under Section 2,3 of this Agreement, and (ii) GCI's obligation to accept the arnounts of
Treaded Wastewater specified in Section 3,2 of this Agreement. The Parties agree that the
provisions listed in the preceding sentence can be specifically enforced, including through
injunctive relief
8.7 Relatiowhip_of Partxeq. In the operation of the Spray Irrigation Facilities
and the acceptance and application of Treated Wastewater, the relationship of -GCI to ,GCLp is
that of independent contractor.
8.8 Waivers and Amendments: N==C_ nQ tract�aI Re�dd'es: „P�reserya 'an of
Remedies. This Agreement may be amended, superseded, canceled, renewed or extended only
by a written instrument signed by the Parties hereto. The provisions hereof may be waived only
in writing by the Parties hereto. No delay ort the part of any Party in exercising any rigbt, power,
or privilege hereunder shall operate as a waiver thereof, nor shall any waiver on the part of any
party of any speh right, flower, or pXivilege, nor any single or partial exercise of any such, right,
power, or pzivilege, preclude any further exercise thereof or the exercise of any other such right,
po-,very or pzivi1ege,'); sept as may be otherwise provided herein, the rights. and remedies herein
provide are Mrna38— and-=-mu-excittsivgvf-'any rights-nr-rtr dies'
patty M Y --
otherwise havd at law or in equity.
8,9 Successors Dmd AssigM. This Agredment, all of its provisions, and all of
the Frights, privileges and obligations gramed, created or assumed hereunder, shall be binding
upon and shall inure to the benefit of the parties hereto and their respective subsidiaries,
successors and assigns, including, without limitation, GCWRC, LLC, 6 wholly owned subsidiary
of GCLP .((3C'WRC), to which GCLP intends .to transfer ownership and operation, of ti,e
?Aca 10 OF 13

�� �� ���Y �.,•�� rna uis aac iiia Uoyernors UlUb POA
.SENT 6Y: 2-25- 4 ; 9:11AM — `9199328529;#12/14
vvastewater Tre;aUnent System. The Parties specifically intend that, upon GCLP's transfer of the
Wastewater Treatmei t System to GCWRC, this Agreement sbalt be binding upon and shall inure
to the benefit of GCWRC; provided that GCLP shall remain obligated under this Agreement' to
meet its obligations under Section 2.3 of this Agre' ament, regardless of ani► such transfer of
ownership. The Parties further acknowledge that inthe future. d16LP nnay sell GCWRC to an
unrelated third party, provided. that GCLP and- GCWRC shall ren=ln obligated under this
Agreement to meet their obligations under Section 2.3 of this Agreement, regardless of any such
transfer of ownership.
5.10 Relationship to OripRial A=er aent gRd Other Adi!enienta. Upon
exe.ution of fts Agreement by the Parties, the Original Agreement shall be terminated and shall
have 12o futrthear force or effect. This Agreement shall not supersede any other agreements
between or arnong the Parties, and such other agreements shall remain Jr, foil force and effect
and, to the extent inconsistent with this Agreement, shall take precedence; provided that (i) dates
of cotnpliarjce in this Agreement shall tape preccdendr., and (ii) for purposes of this provision,
this AgreeIDent shall not be interpreted to' be inconsistent where it contains provisicans not
containr,d in earlier agrecments among the Parties.
S_I l Authority to Execute IrreenneJ. Each of the undersigned represents and
Warrants that lYe or she is fully authorized to enter into this Agreement and, by doing so, to bind
ibc appropriate party. Each party shall provide to the other parties copies of appropriate
authorizing resolutions as may be necessary to make this Agreement binding upon that party.
' J
.8.12 Exhibits. Any and aU Exhibits and Schedules attached hereto, if any, are
hereby inc000rated by reference into, and made a part of this Agreement.
8_13 ['_nunte[pa The Agreement may be executed iii any number of
counterparts, each of which shall be deemed to be. an original as against any Party whose
signature appears thereon, and all of which shall together constitute one and the same instrument
This Agreement shall become binding when one or more counterparts hereof, individually or
taken together, shall bear the signatures of all of the Parties reflected hereon as the signatories.
[Signatures spoear on the following page.)
PAGE 11 of 13

• ..-., +..•, .•••v: 1v. Vv 1't vty VOL 0040 Uovernors Club POA A
2-25- 4 ; 9:12AM 9199328529;*13/14
�!. WI'T'NESS WHEREOF, the Parties hereto have caused this Agreement to be duly
executed as, of the Effective Bate first above written. 1
GOVEPNORS CUM LMTED PA.RT3-TERSHIP
A Delaware Lingted Par-Mefship �
8y: Its General Partner, ,
Governors Club Development Corporation
,CORPORATE SEAL)
ATTEST.
Secretary
President
A.TTTST.
Se�r� etary
PAGE 12 OF 13
GO MORS CLUB, INC.
A North Carolina Non0ofit Corporation
GOVERNORS CLUB PROPERTY OWNERS
ASSOCIATION, Inc.
A North Carolina NonpTofit CoM oration
• Presxclent

_-• --_ _ rz— vta V0Z 6529 "I 015
— — .............. [�S'Si3�©I�--
SENT BY: 2-25- a ; 9.12AM 9199328529;#14/14
Attachment A
Ser 4rices Caaered by Spray Zr1i ration Facilities Maintcnance'Fee
I _ Maintenance ofthe Power Line Areas s
(a) Mowing as needed; height must be kept less than twelve inchcs (12')
(b) Maintenance of.fields to repair rutting from equipment and to eliminate ponding
(c) Maintenance and re -seeding to ensure proper cover crop 12 months aut of the
year
?Yainteuance of SpzMy Irrigation System
(a) Maintenance, including replacepent as needed, of irrigation heads and controllers
(b) Maintename ofpipi rg
(e) Maintenance and calibration of weters
(d) Maintenance of pumping stations
3. Admix"tradve Activities
(aj Collection, management anis reporting of data and other information relating to
the Spray Irrigation Facilities as required by D•V'iTQ and pmvAt, which shall be
specified in': ft Spray Protocols
(b) Collection, mabagetnent and reporting of data and other information as required
to fulfill GCPs obligations under the Spray Protocols
(c) Collection; management, and reporting of data and other information as required
to fulfill GCPs obligations in connection with the hater balance study, the deep
subsoilit>g evaluation, and the eews study
PADS 13 OF 13