WQ0009772_Final Permit_20160512

Water Resources
ENVIRONMENTAL QUALITY
PAT MCCRORY
DONALD R. VAN DER VAART
Secretary
S. JAY ZIMMERMAN
fhrector
May 12, 2016
MARTIN J. LASHUA — VICE PRESIDENT OF OPERATIONS
CAROLINA WATER SERVICE, INC. OF NORTH CAROLINA
POST OFFICE BOX 240908
CHARLOTTE, NORTH CAROLINA 28224-0908
Dear Mr. Lashua:
Subject: Permit No. WQ0009772
Monteray Shores WWTP
High -Rate Infiltration System
Currituck County
In accordance with your permit renewal request received August 28, 2015, and subsequent
additional information received March 30, 2016, we are forwarding herewith Permit No. WQ0009772 dated
May 12, 2016, to Carolina Water Service, Inc. of North Carolina for the construction and operation of the
Phase III facilities, and the continued operation of the existing wastewater treatment and high -rate
infiltration facilities.
This permit shall be effective from the date of issuance until April 30, 2021, shall void Permit No.
WQ0009772 issued January 16, 2015, and shall be subject to the conditions and limitations as specified
therein. Please pay particular 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 are new since the last permit issuance dated
January 16, 2015:
1. Condition III.14. — Turbidimeter to be tested and calibrated.
2. Condition IV:1 O.c. —Date of turbidimeter calibration.
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 150E 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.
State of North Carolina I Environmental Quality I Water Resources I Water Quality Permitting I Non -Discharge Permitting
1617 Mail Service Center I Raleigh, North Carolina 27699-1617
919 807 6464

Mr. Martin J. Lashua
May 12, 2016
Page 2 of 2
If you need additional information concerning this permit, please contact Troy Doby at (919) 807-
6336 or trgy.dobyAncdenr.gov.
Sincerely,
S. Jay Zimmerman, P.G., Director
Division of Water Resources
cc: Currituck County Health Department (Electronic Copy)
Washington Regional Office, Water Quality Regional Operations Section (Electronic Copy)
Digital Permit Archive (Electronic Copy)
Central Files

NORTH CAROLINA
ENVIRONMENTAL MANAGEMENT COMMISSION
DEPARTMENT OF ENVIRONMENT AND NATURAL RESOURCES
RALEIGH
HIGH -RATE INFILTRATION 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
Carolina Water Service, Inc. of North Carolina
Currituck County
FOR THE
operation of a 720,000 gallon per day (GPD) wastewater treatment and high -rate infiltration facility
consisting of -
continued operation of the existing Phase I facilities consisting of. an influent pump station and wet well
with two 1,750 gallon per minute (GPM) centrifugal pumps, one 80 GPM centrifugal jockey pump, two
300 GPM centrifugal equalization pumps, audible/visual high water alarms and two ultrasonic influent flow
meters; two rotary drum screens with 2 miIlimeter (mm) perforations; a vortex grit separator/classifier with
dumpster; a 245,000 gallon flow equalization basin with three 168 cubic feet per minute (CFM) blowers
and coarse bubble diffusers; a flow splitter box; two 7,023 anaerobic tanks with two 2.3 horsepower (hp)
mixers; two 14,000 gallon anoxic tanks with two 180 GPM centrifugal recycle pumps, two 2.3 hp mixers
and two magnetic flow meters; two 25,900 gallon aeration basins with two 180 GPM centrifugal recycle
pumps, two 140 GPM centrifugal recycle jockey pumps, three 334 CFM positive displacement blowers,
one 170 CFM positive displacement jockey blower, fine bubble diffusers, two magnetic flow meters and
two magnetic jockey flow meters; two 25,900 gallon secondary anoxic tanks with two 2.3 hp mixers; a
membrane reactor splitter box; five 14,220 gallon membrane bioreactor tanks with each tank containing
five membrane modules, as well as five 360 GPM centrifugal sludge return pumps, one 170 GPM
centrifugal sludge return jockey pump, six magnetic recycled activated sludge flow meters, one magnetic
waste activated sludge flow meter, six 105 GPM centrifugal permeate pumps; an auxiliary membrane
module stored onsite; a recycle activated sludge splitter box.; an alum pump/storage feed system; a NaOCI
pump/storage feed system; a methanol pump/storage feed system; 117,150 gallons of aerated sludge storage
(comprised of a 57,400 gallon basin, a 27,230 gallon basin and a 50,540 gallon basin) served by three 323
CFM positive displacement blowers; an ultraviolet (UV) disinfection system consisting of 2 banks with a
total of 40 lamps; an automatic auxiliary generator and transfer switch; six effluent magnetic flow meters;
six turbidimeters; a 2.6 million gallon steel five day upset tank; two 120 GPM centrifugal drain pumps; a
1.85 acre high -rate infiltration basin; a groundwater lowering pump station with two 540 GPM pumps; and
all associated piping, valves, controls and appurtenances; the
continued operation of the existing Phase II facilities consisting of. the relocated five membrane modules
from an existing 14,220 gallon membrane bioreactor tank, with one of these membranes being placed in
each of the four other existing 14,220 gallon membrane bioreactor tanks resulting in each tank having six
membrane modules (the fifth relocated membrane module will be placed in onsite storage); four ultra -
filtration membranes modules into the aforementioned and vacated existing 14,220 gallon membrane
bioreactor tank; and all associated piping, valves, controls and appurtenances; and the
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construction and operation of the proposed Phase III facilities consisting of. eight ultra -filtration membranes
modules into the vacated existing 14,220 gallon membrane bioreactor tank mentioned in Phase H for a total
of 12 ultra -filtration membrane modules; a 1,015,591 gallon synthetically lined five day upset pond; and
all associated piping, valves, controls and appurtenances;
to serve residential and commercial sources at Monteray Shores Phase I & II, Buck Island, Timbuck II and
Corolla Bay, as well as up to 197,500 GPD of untreated wastewater from Corolla Light WWTP 41 (Permit
No. WQ0006254) and Corolla Light WWTP ##2 (Permit No. NC0015282AI), with no discharge of wastes
to surface waters, pursuant to the application received January 6, 2015, and in conformity with the project
plans, specifications, and other supporting data subsequently filed and approved by the Department of
Environment and Natural Resources and considered a part of this permit.
This permit shall be effective from the date of issuance until April 30, 2021, shall void Permit No.
WQ0009772 issued January 16, 2015, and shall be subject to the following specified conditions and
limitations:
1. SCHEDULES
Upon completion of construction and prior to operation of the Phase III permitted facilities, a
certification (attached) shall be submitted from a licensed North Carolina Professional Engineer
certifying that the permitted facility has been installed in accordance with this permit, Division
approved plans and specifications, and other supporting documentation, including the location of all
monitoring wells as applicable. If this proJect is to be completed in phases and partially certified the
Perrnittee shall retain the responsibili , to track further construction approved under the same permit,
and shall provide a final certificate of completion once the entire project has been completed. Mail the
Certification to the Division of Water Resources, Water Quality Permitting Section, 1617 Mail Service
Center, Raleigh, NC 27699-1617. [15A NCAC. 02T A 116(a)]
2. The Washington Regional Office, telephone number [phone], shall be notified at least 48 hours
in advance (excluding weekends and holidays) of operation of the installed facilities such that an in -
place inspection can be made. Notification to the regional supervisor shall be made from 8:00 a.m.
until 5:00 p.m. on Monday through Friday, excluding State Holidays. [15A NCAC 02T .0108(b)(2)]
3. 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.
[I5A NCAC 02T .0105(d), 02T .0106, 02T .0109, 02T .0115(c)]
4. If the subject wastewater treatment or infiltration facilities are in noncompliance with the terms and
conditions of this permit, governing statutes or regulations, the subject facilities shall be connected to
an operational publicly owned wastewater collection system within 180 days of its availability. Prior
to the initiation of these connection activities, appropriate Division approval shall be received. [15A
NCAC 02H .0404(e)]
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II. PERFORMANCE STANDARDS
The subject non -discharge 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 infiltration areas to adequately assimilate the
effluent, the Permittee shall take immediate corrective actions including Division required actions, such
as the construction of additional or replacement wastewater treatment or infiltration 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 quality shall not exceed the limitations specified in Attachment A. [ 15A NCAC 02T .0705(b)]
5. Application rates, whether hydraulic, nutrient or other pollutant, shall not exceed those specified in
Attachment B. [15A NCAC 02T .0705(m)]
6. A usable green area shall be maintained for effluent disposal. The green area shall contain at least
1,000 square feet of open green area for each residential unit served, or 2,500 square feet per thousand
gallons per day of waste flow, whichever is less. A green area is defined as an area suitable for waste
disposal, either in its natural state or which has been modified by planting a vegetative cover of grasses
or low growing shrubbery. [15A NCAC 02H .0404(g)(7)]
7. This disposal system was individually permitted on or after December 30, 1983; therefore, the
compliance boundary is established at either 250 feet from the effluent disposal area, or 50 feet within
the property boundary, whichever is closest to the effluent disposal area. An exceedance of
groundwater standards at or beyond the compliance boundary is subject to remediation action according
to 15A NCAC 02L .0106(d)(2) as well as enforcement actions in accordance with North Carolina
General Statute 143-215.6A through 143-215.6C. [ 15A NCAC 02L .0106(d)(2), 02L .0107(b)]
8. In accordance with 15A NCAC 02L .0108, the review boundary is established midway between the
compliance boundary and the effluent disposal area. Any exceedance of groundwater standards at the
review boundary shall require action in accordance witb 15A NCAC 02L .0106. [15A NCAC 02L
.0106, 02L .0108]
9. 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)]
10. In accordance with 15A NCAC 02L A 107(d), 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]
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11. In accordance with 15A NCAC 02L .0107(f), except as provided for in 15A NCAC 02L .0107(g), for
all permits issued or reissued after January 1, 1993 and the Permittee is not the owner of the land within
the compliance boundary, it shall be a condition of this permit that the landowner of the land within the
compliance boundary, if other than the Permittee, execute and file in the Register of Deeds in the county
in which the land is located, an easement running with the land which:
a. Contains either a notice of the permit, including the permit number, a description of the type of
permit, and the name, address and telephone number of the permitting agency; or a reference to a
notice of the permit with book and page number of its recordation if such notice is required to be
filed by statute;
b. Prohibits the construction and operation of water supply wells within the compliance boundary;
and
c. Reserves the right to the Permittee and the State to enter on such property within the compliance
boundary for groundwater monitoring and remediation purposes. The easement may be terminated
by the Director when its purpose has been fulfilled or the need for the easement no longer exists.
Under those conditions the Director shall, upon request by the landowner, file a document
terminating the easement with the appropriate Register of Deeds.
[I5A NCAC 02L .0107(f)]
12. The facilities permitted herein shall be constructed according to the following setbacks:
a. The setbacks for high -rate infiltration sites permitted under 1 SA NCAC 02T .0700 shall be as
follows (all distances in feet):
i. Any habitable residence or place of public assembly under separate ownership:
1001
ii. Any habitable residence or place of public assembly owned by the Permittee:
501
iii. Any private or public water supply source:
1.00
iv. Non -SA surface waters
50 z
v. SA surface waters:
1002
vi. Groundwater lowering ditches:
50'
vii. Surface water diversions:
50
viii. Any well with exception of monitoring wells:
100
ix. Any property line:
501
x. Top of slope of embankments or cuts of two feet or more in vertical height:
100
xi. Any water line from a disposal system:
10
xii. Subsurface groundwater lowering drainage systems:
502
xiii. Any swimming pool:
100
xiv. Public right of way:
S0
xv. Nitrification field:
20
xvi. Any building foundation or basement:
15
xvii. Impounded public water supplies:
500
xviii. Public shallow groundwater supply:
500
1 Setbacks to habitable residences and places of public assembly under separate ownership
and
owned by the Permittee have been reduced to 100 and 50 feet, respectively, and setbacks to
property lines have been reduced to 50 feet due to Permittee's compliance with the High -Rate
Infiltration System Design Policy dated October 27, 2006.
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2 Setbacks to non -SA surface waters, groundwater lowering ditches and subsurface groundwater
lowering drainage systems have been reduced to 50 feet because the treatment units are
designed to meet a Total Nitrogen limit of 4 mg/L and a Total Phosphorus limit of 2 mg/L in
accordance with 15A NCAC 02T .0706(c). Setbacks to SA surface waters have been reduced
to 100 feet in accordance with 15A NCAC 02T .0706(b).
[15A NCAC 02T .0706(a), 02T .0706(b), 02T .0706(c)]
b. The setbacks for storage and treatment units permitted under 15A NCAC 02T .0700 shall be as
follows (all distances in feet):
i. Any habitable residence or place of public assembly under separate ownership: 100
ii. Any private or public water supply source: 100
iii. Surface waters: 50
iv. Any well with exception of monitoring wells: 100
v. Any property line: 50
[I 5A NCAC 02T .0706(d)]
III. OPERATION AND MAINTENANCE REQUIREMENTS
1. The facilities shall be properly maintained and operated at all times. The facilities shall be effectively
maintained and operated as a non -discharge system to prevent the discharge of any wastewater resulting
from the operation of this facility. The Permittee shall maintain an Operation and Maintenance Plan,
which at a minimum shall include operational functions, maintenance schedules, safety measures and
a spill response plan. [ 15A NCAC 02T .0707]
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 02T .0117]
3. Only effluent from Monteray Shores WWTP and up to 197,500 GPD from Corolla Light WWTP # 1
(Permit No. WQ0006254) and Corolla Light WWTP 42 (Permit No. NC0015282A 1) shall be infiltrated
on the sites listed in Attachment B. [G.S. 143-215.1]
4. 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 02H .0404(g)(3)]
5. No automobiles or machinery shall be allowed on the infiltration sites except during equipment
installation or while maintenance is being performed. [15A NCAC 02T .0108(b)(1)]
6. Public access to the infiltration sites and wastewater treatment facilities shall be prohibited. [15A
NCAC 02T.0705(p)]
7. 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 02T .0708. [15A NCAC 02T.0708, 02T .1100]
8. Diversion or bypassing of untreated or partially treated wastewater from the treatment facilities is
prohibited. [15A NCAC 02T .0705(i)]
9. Freeboard in the high -rate infiltration basins, five-day upset tank and five-day upset pond shall not be
less than two at anytime. [15A NCAC 02T .0705(c)]
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10. Gauges to monitor waste levels in the infiltration basins, five-day upset tank and five-day upset pond
shall be provided. These gauges shall have readily visible permanent markings, at inch or tenth -of -a-
foot increments, indicating the following elevations: maximum liquid level at the top of the temporary
liquid storage volume; minimum liquid level at the bottom of the temporary liquid storage volume; and
the lowest point on top of the dam. [ 15A NCAC 02T .0108(b)(1)]
11. 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)]
12. All effluent shall be routed to the five day upset tank and/or five day upset pond should the limit for
fecal coliform (e.g., daily maximum concentration of 25 colonies per 100 mL) or turbidity (e.g.,
instantaneous maximum of 10 NTU) be exceeded, until the problems associated with the wastewater
treatment plant have been corrected. The wastewater in the five-day upset tank and/or five-day upset
pond shall be pumped back to the treatment plant headworks for re -treatment or treated in the five-day
upset tank and/or five-day upset pond prior to infiltration. [ 15A NCAC 02T .0108(b)(1)]
13. The infiltration basins shall be periodically dredged to remove deposited materials that may impede the
infiltration process. Cleaning 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. The Washington Regional Office,
telephone number [phone], shall be notified prior to each cleaning. [15A NCAC 02T
.0108(b)(1)]
14. 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)]
IV. MONITORING AND REPORTING REQUIREMENTS
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)]
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 treatment 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)]
4. The Permittee shall monitor the effluent from the subject facilities at the frequencies and locations for
the parameters specified in Attachment A. [15A NCAC 02T .0108(c)]
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The Permittee shall maintain adequate records tracking the amount of effluent infiltrated. At a
minimum, these records shall include the following information for each infiltration site listed in
Attachment B:
a. Date of infiltration;
b. Volume of effluent infiltrated;
c. Site infiltrated;
d. Loading rates to each infiltration site listed in Attachment B;
e. Weather conditions.
[ 15A NCAC 02T .O 108(c)]
6. Freeboard (i.e., waste level to the lowest embankment elevation) in the infiltration basins, five-day
upset tank and five-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)]
Three copies of all monitoring data (as specified in Conditions IV.3. and IVA.) on Form NDMR for
each PPI and three copies of all operation and disposal records (as specified in Conditions 1V.5. and
IV.6) on Form NDAR-2 for every site in Attachment B shall be submitted on or before the last day of
the following month. If no activities occurred during the monitoring month, monitoring reports are still
required documenting the 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(i)]
8. Pursuant to § 143-215.1C., the Permittee shall provide to its users and the Division of Water Resources
an annual report summarizing the performance of the wastewater treatment and infiltration facility and
the extent to which the facility has violated this permit, or federal or State laws, regulations, or rules
related to the protection of water quality. This report shall be prepared on either a calendar or fiscal
year basis and shall be provided no later than 60 days after the end of the calendar or fiscal year. Two
copies of the annual report provided to the Permittee's users shall be submitted to:
Division of Water Resources
Water Quality Permitting Section
1617 Mail Service Center
Raleigh, North Carolina 27699-1617
[G.S. 143-215.1C]
9. 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.
[15ANCAC 02T .0108(b)(1)]
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10. 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. Date and results of power interruption testing on alternate power supply;
b. Date of calibration of flow measurement device;
c. Date of calibration of turbidimeter;
d. Visual observations of the plant and plant site; and
e. Record of preventative maintenance (e.g., changing of equipment, adjustments, testing, inspections
and cleanings, etc.).
[15A NCAC 02T .0108(b)(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 nomenclature as provided in Attachment C and Figure 1. [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 Washington Regional Office, telephone number (252)
946-6481, 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 facility failure resulting in a by-pass directly to receiving surface waters.
d. Any time self -monitoring indicates the facility has gone out of compliance with its permit
limitations.
e. Effluent breakout from the infiltration basins.
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 .0105(1), 02T .0108(b)(1)]
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V. INSPECTIONS
The Permittee shall provide adequate inspection and maintenance to ensure proper operation of the
wastewater treatment and infiltration facilities. [15A NCAC 02T .0108(b)]
The Permittee or their designee shall inspect the wastewater treatment and infiltration facilities to
prevent malfunctions, 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 wastewater treatment and infiltration 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 of this permit,
and may collect groundwater, surface water or leachate samples. [G.S. 143-21.5.3(a)(2)]
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]
2. 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. [15A NCAC 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. 143-21.5.1 ]
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 General Permit NCG010000; any requirements pertaining to wetlands under 15A NCAC 02B
.0200 and 02H .0500; and documentation of compliance with Article 21 Part 6 of Chapter 143 of the
General Statutes. [15A NCAC 02T .0105(c)(6)]
5. In the event the permitted facilities change ownership or the Permittee changes their name, a formal
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)]
WQ0009772 Version 3.0 Shell Version 150213 Page 9 of 11

8. Any permit issued by the Division pursuant to Administrative Code 15A Subchapter 02T is subject to
revocation, or modification upon 60-day notice by the Director of Water Resources in whole or part
for:
a. Violation of any terms or conditions of the permit;
b. Obtaining a permit by misrepresentation or failure to disclose fully all relevant facts;
c. Refusal of the Permittee to allow authorized employees of the Department of Environment and
Natural Resources upon presentation of credentials:
i. to enter upon Permittee's premises on which a system is located in which any records are
required to be kept under terms and conditions of the permit;
ii. to have access to any documents and records required to be kept under terms and condition of
the permit;
iii. to inspect any monitoring equipment or method required in the permit; or
iv. to sample any pollutants.
d. Failure to pay the annual fee for administering and compliance monitoring.
[I 5A NCAC 02T .0110]
9. Permits for new and expanding facilities shall not be granted, unless the Division of Water Resources
determines that the permit is specifically and solely needed for the construction of facilities to resolve
non-compliance with any environmental statute or rule when any of the following apply:
a. The applicant or any parent, subsidiary, or other affiliate of the applicant or parent has been
convicted of environmental crimes under G.S. 143-215.613 or under Federal law that would
otherwise be prosecuted under G.S. 143-215.6B where all appeals have been. abandoned or
exhausted.
b. The applicant or any affiliation has previously abandoned a wastewater treatment facility without
properly closing the facility in accordance with the permit or Administration Code 15A Subchapter
02T.
c. The applicant or any affiliation has not paid a civil penalty where all appeals have been abandoned
or exhausted.
d. The applicant of any affiliation is currently not compliant with any compliance schedule in a permit,
settlement agreement or order.
e. The applicant or any affiliation has not paid an annual fee in accordance with 15A NCAC 02T
.0105(e)(2).
[ 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 12'h day of May 2016
NORTH CAROLINA ENVIRONMENTAL MANAGEMENT COMMISSION
S. Jay Zimmerman, P.G., Direct
Division of Water Resources
By Authority of the Environmental Management Commission
Permit Number WQ0009772
WQ0009772 Version 3.0 Shell Version 150213 Page 10 of 11

Permit No. WQ0009772 High -Rate Infiltration System
Carolina Water Service, Inc. of North Carolina May 12, 2016
Monteray Shores WWTP Currituck County
ENGINEERING CERTIFICATION
❑ Partial ❑ Final
In accordance with 15A NCAC 02T .0116, I,_ �, as
a duly registered Professional Engineer in the State of North Carolina, having the Permittee's authorization
to ❑ periodically ❑ weekly ❑ fully observe the construction of the permitted facility, hereby state to the
best of my abilities that due care and diligence was used in the observation of the construction, such that
the facility was built within substantial compliance and intent of this permit, the Division -approved plans
and specifications, and other supporting documentation.
❑ Any variation to this permit, the Division -approved plans and specifications, and other supporting
documentation has been documented in the attached as -built drawings, and shall serve as the
Permittee's minor modification request to amend the permit accordingly.
Provide a brief narrative description of any variations:
THE COMPLETED ENGINEERING CERTIFICATION, INCLUDING ALL SUPPORTING
INFORMATION AND MATERIALS, SHALL BE SENT TO THE FOLLOWING ADDRESS:
NORTH CAROLINA DEPARTMENT OF ENVIRONMENT AND NATURAL RESOURCES
DIVISION OF WATER RESOURCES
WATER QUALITY PERMITTING SECTION
NON -DISCHARGE PERMITTING UNIT
By U.S. Postal Service:
1617 MAIL SERVICE CENTER
By Courier/Special Delivery:
512 N. SALISBURY ST.
RALEIGH, NORTH CAROLINA 27699-1617 RALEIGH, NORTH CAROLINA 27604
WQ0009772 Version 3.0 Shell Version 150213 Page 11 of 11

THIS PAGE BLANK

ATTACHMENT A — LIMITATIONS AND MONITORING REQUIREMENTS
PPI 001— WWTP Effluent
Permit Number: WQ0009772 Version: 3.0
EFFLUENT CIIARACTERISTICS
EFFLUENT LIMITS
MONITORING REQUIREMENTS
PCs
Code
Parameter Description
Units of
Measure
Monthly
Average
Monthly
Geometric Mcan
Daily Minimum
Daily Maximum
Measurement
Frequency
Sample
Type
00310
BOD, 5-Day (20 °C)
mg/L
10
15
Weekly
Composite
00940
Chloride (as Cl)
mg/L
3 x Year
Composite
31616
Coliform, Fecal MF, M-FC Broth, 44.5 °C
#/100 mL
14
25
Weekly
Grab
50050
Flow, in Conduit or thru Treatment Plant
GPD
580,3202
720 000 3
Continuous
Recorder
00610
Nitrogen, Ammonia Total (as N)
mg/L
4
6
Weekly
Composite
00625
Nitrogen, Kjeldahl Total (as N)
mg/L
Weekly
Composite
00620
Nitrogen, Nitrate Total (as N)
mg/L
10
Weekly
Composite
00600
Nitrogen, Total (as N)
mg/L
4
Weekly
Composite
00400
pH
su
6
9
Weekly
Composite
00665
Phosphorus, Total (as P)
mg/L
2
Weekly
Composite
70300
Solids, Total Dissolved — 180 °C
mg/L
3 x Year
Composite
00530
Solids, Total Suspended
mg/L
5
10
Weekly
Composite
00076
Turbidity, HCH Turbidimeter
NTU
10
Continuous
Recorder
1. 3 x Year sampling shall be conducted every March, July and November.
2. Prior to construction and operation of the newly permitted Phase .III facilities, the flow shall be limited to 580,320 GPD.
3. Upon construction, certification and operation of the newly permitted Phase III facilities, the flow shall be limited to 720,000 GPD.
WQ0009772 Version 3.0 Attachment A Page 1 of 2

ATTACHMENT A - LIMITATIONS AND MONITORING REQUIREMENTS
PPI 002 - Groundwater Lowering System Effluent
Permit Number: WQ0009772 Version: 3.0
EFFLUENT CHARACTERISTICS
PC5
Corte Parameter Description
EFFLUENT LIMITS
Monthly Monthly
Units of Measure Average Geometric Mean Daily Minimum Daily Maximum
MONITORING REQUIREMENTS
Measurement Sample
Frequency Type
9 Y Yp
00310
BOD, 5-Day (20 °C)
mg/L
Weekly
Grab
00680
00940
Carbon,. Total Organic (TOC)
Chloride (as Cl)
mg/L
mg/L
250
3 x Year
3 x Year
Grab
Grab
31616
Coliform, Fecal MF, M-FC Broth, 44.5 °C
#/100 mL
Weekly
Grab
50050
Flow, in Conduit or thru Treatment Plant
GPD
Continuous
Recorder
00610
Nitrogen, Ammonia Total (as N)
mg/L
1.5
—
Weekly
Grab
00620
Nitrogen, Nitrate Total (as N)
mg/L
10
Weekly
Grab
00600
Nitrogen, Total (as N)
mg/L
Weekly
Grab
00400
pH
su
6.5
8.5
Weekly
Grab
00665
Phosphorus, Total (as P)
mg/L
Weekly
Grab
70300
Solids, Total Dissolved —180 °C
mg/L
500
3 x Year
Grab
NDVOC
Volatile Compounds (Effluent)
Present: Yes/No
Annually z
Grab
00076
Turbidity,14CH Turbidimeter
NTU
10
Continuous
Recorder
L 3 x Year sampling shall be conducted every March, July and November.
2. Annual sampling shall be conducted every November.
WQ0009772 Version 3.0 Attachment A Page 2 of 2

ATTACHMENT B - APPROVED LAND APPLICATION SITES AND LIMITATIONS
Carolina Water Service, Inc. of North Carolina -- Monteray Shores WWTP
Permit Number: WQ0009772 Version: 3.0
INFILTRATION/IRRIGATION AREA INFORMATION
APPLICATION LIMITATIONS
Basin
Owner
County
Latitude
Longitude
Net
Dominant
Parameter
Rate
Units
Acreage
Soil Series
1�
Carolina Water Service Inc. of
Currituck
36.331504°
-75.818705°
1.23
Newhan
01284 —Non-Discharge Application Rate
7.42
GPD/ft2
North Carolina
397,151
GPD
1 B
Carolina Water Service, Inc. of
Currituck
36.330982'
-75.818210'
1.00
Newhan
01284 — Non -Discharge Application Rate
7.42
GPD/ft2
North Carolina
322,849
1 GPD
Totals I
I
I
1
1 2.23
WQ0009772 Version 3.0 Attachment B Page 1 of 1

THIS PAGE BLANK

ATTACHMENT C — GROUNDWATER MONITORING AND LIMITATIONS
Monitoring wells: MW-12, MW-13
Permit Number: WQ0009772 Version: 3.0
GROUNDWATER CHARACTERISTICS
GROUNDWATER STANDARDS
MONITORING REQUIREMENTS
PCS Code
Parameter Description
Daily Maximum
Frequency Measurement
Sample Type
Footnotes
00680
Carbon, Tot Organic (TOC)
mglL
3 x Year
Grab
1,6
00940
Chloride (as CI)
250
mg/L
3 x Year
Grab
1
31616
Coliform, Fecal MF, M-FC Broth, 44.5 °C
#/100 mL.
3 x Year
Grab
1
00610
Nitrogen, Ammonia Total (as N)
1.5
mg/L
3 x Year
Grab
1
00620
Nitrogen, Nitrate Total (as N)
10
mg/L
3 x Year
Grab
1
00400
pH
6.5-8.5
su
3 x Year
Grab
1, 2
00665
Phosphorus, Total (as P)
mg/L
3 x Year
Grab
1
70300
Solids, Total Dissolved - 180 °C
500
mg/L
3 x Year
Grab
1
GWVOC
Volatile Compounds (GC/MS)
Present: Yes/No
Annually
Grab
1, 4, 5
82546
Water Level, Distance from measuring point
feet
3 x Year
Calculated
1, 2, 3
1. 3 x Year monitoring shall be conducted in March, July & November, Annual monitoring shall be conducted every November.
2. The measurement of water levels shall be made prior to purging the wells. The depth to water in each well shall be measured from the surveyed point on the top of the casing. The measurement of
pH shall be made after purging and prior to sampling for the remaining parameters.
3. The measuring points (top of well casing) of all monitoring wells shall be surveyed to provide the relative elevation of the measuring point for each monitoring well. The measuring points (top of
casing) of all monitoring wells shall be surveyed relative to a common datum.
4. Volatile Organic Compounds (VOC) - In November only, analyze by one of the following methods:
a. Standard Method 6230D, PQL at 0.5 µg/L or less
b. Standard Method 621 OD, PQL at 0.5 µg/L or less
c. EPA Method 8021, Low Concentration, PQL at 0.5 µg/L or less
d. EPA Method 8260, Low Concentration, PQL at 0.5 µ fL. or less
e. Another method with prior approval by the Water Quality Permitting Section Chief
Any method used must meet the following qualifications:
a. A Iaboratory must be DWR certified to run any method used.
b. The method used must, at a minimum, include all the constituents listed in Table VIII of Standard Method 6230D.
C. The method used must provide a PQL of 0.5 ug/L or less that must be supported by laboratory proficiency studies as required by DWR Any constituents detected above the MDL but below
the PQL of 0.5 µg/L must be qualified (estimated) and reported.
5. If any volatile organic compounds (VOC) are detected as a result of monitoring as provided in Attachment C, then the Washington Regional Office supervisor, telephone number [phone],
must be contacted immediately for further instructions regarding any additional follow-up analyses required.
6. If TOC concentrations greater than 10 mg/L are detected in any downgradient monitoring well, additional sampling and analysis must be conducted to identify the individual constituents comprising
this TOC concentration. If the TOC concentration as measured in the background monitor well exceeds 10 mg/L, this concentration will be taken to represent the naturally occurring TOC
concentration. Any exceedances of this naturally occurring TOC concentration in the downgradient wells shall be subject to the additional sampling and analysis as described above.
7. Monitoring wells shall be reported consistent with the nomenclature and location information provided in Figure 1 and this attachment.
WQ0009772 Version 3.0 Attachment C
Page 1 of 1

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Figure 2 — Directional Ma
WQ0009772
824 Malin Dr., Corolla, NC 27927
Carolina Water Service, Inc. of NC
Latitude: 36.329544'
Monteray Shores WWTP
Longitude:-75.8182971
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3 — Topoaraphi
WQ0009772 824 Malia Dr., Corolla, NC 27927
Carolina Water Service, Inc. of NC Latitude: 36.329544'
Monteray Shores WWTP Longitude:-75.818997'

T 4A! .� —R TAX AM01,WT
1, i _� '-OR S_
PREPARED BY AND RETURN TO:
Christopher J. Ayers
Hunton & Williams LLP
P.O. Box 109
Raleigh, NC 27602
L':TrH CA NA EXCISE STAMPP$
TCACHED C"CELLED P o �.-
BOOK (? ma
MEMBER 11111111
ono zp: 002087610023 rope: CAP
Recorded: 08112/2008 at 10;55:19 At7
Fee Art: $5G.00 Pape 1 of is
Gurrituck County, HC
Charlene v Dowdy Register of Deeds
Ew 1059 Po592-604 REC8M/NCDEB/DWR
MAR 3 0 2016
EFFLUENT EASEMENT AND IRRIGATION AGREEMENT
Non -Discharge
d Permlttlrlq Unit
0
This £ UENT EASEMENT AND IRRIGATION AGREE.MI==:1` T (this "Effluent
F,asernent") is a and entered into as of the 4th day of August, 2008 (the "Effective Date" ), by
MONTERAY SHWS, INC., a North Carolina corporation {"MSI" }, BUCK ISLAND, INC., a
Notch Carolina cotion ("Bli" and, together with MSI, defined as "Grantor" for recording
purposes) and CAR A WATER SERVICE, INC. of NORTH CAROLINA, a North
Carolina corporation CWS", or "Grantee" for recording purposes). CWS, MST and BE are
sometimes referred to herein each individually as a "Party," and collectively as the "Parties."
WITNESSETH:
WHEREAS, CWS, M$LI and the Public Staff - North Carolina Utilities Commission
(tbe "Public Staff') have entereck into the Settlement Agreement (as defined below), MST and
CWS have entered into the MST �t Purchase Agreement (as defined below) and BE and CWS
have entered into the BIT Asset hurler� 1se Agreement (as defined below), each of which is
incorporated berein by reference ancf�flafie a part hereof,
WHEREAS, pursuant to the Setf+t,'eent Agreement, the MSI Asset Purchase Agreement
and the BII Asset Purchase Agreement, h S.1 and SII have agreed to sell, transfer and assiga all
of their remaining interests in a water produ(�tpn, treatment, storage and distribution system and
a sewer collection, treatment and disposal syst�fn that have been installed to provide water and
sewer service to residences and businesses in aprvice area located in Currituck County, North
Carolina- ��
NOW,'TBEREFORE, in consideration of'
g+ 3 and valuable consideration, the receipt
anal sufficiency of which is hereby acknowledged, C MSI, and BII, intending to be legally
bound, agree as follows:
1. Definitions.
1.1 "BI1" shall have the meaning set forth in the .Cable to this Effluent Fasernent.
1.2 `BII Asset Purchase Agreement" shall paean thatj
Asset Purchase
an
Agreement, dated as of December 19, 200S, between CWS d
Tax Collector Certification That No Delinquent Taxes
AseDue. i]ate 1-D >3y/: Certification
expires Jan. 6=1' of the year following certification date.
6
0
Book'i459 Page 592

BOOK 1059WE0553
1.3 "BII Property" shall mean all property owned by BIl that has been or will be
encumbered by the Effluent Easement granted herein for spray irrigation with Treated
(:)Wastewater (as defined below).
1.4 "CWS" shall have the meaning set forth in the Preamble to this Effluent
Baftient.
0
f .5 "Development Property" shall mean all property shown on the Easement Map.
"DWQ" shall mean the Division of Water Quality of the North Carolina
Departrneni c, Environment and Natural Resources_
1.7 �O "Easement Areas" shall mean:
0
property designated as "PROPOSED DESIGNATED GREEN AREA TC
H PERPETUAL, RIGHT TO SPRAY IRRIGATE MUST BE GRANTED
TO OLINA WATER SERVICE, INC. OF NC" on the Easement Map,
p,mvi ,4 that "Easement Areas" shall not include the 1.42-acre parcel known as
proposed Commercial Parcel 7 as shown on map C-3 and this area will be
subtracted from the proposed green area on map C-2.;
(b) all prope&designated as "PROPOSED DESIGNATED PONDS TO WHICH
PERPETUAIY*GHT TO PLACE TREATED WASTEWATER FOR SPRAY
IRRIGATION JkD DISPOSAL, BY POND LEAKAGE MUST BE GRANTED
TO CAROLINA A' TER SERVICE, INC_ OF NC" on the Easement Map with
the understanding B1I retains authority to install structures within Pond ##8 in
such a fashion that CVS's use of the pond does not interfere with such structure
and BII's structured s t interfere with CWS's use of the pond;
(c) all property designat EXISTING DESIGNATED GREEN AREA TO
WHICH PERPETUAL RI HT TO SPRAY IRRIGATE MUST BE GRANTED
TO CAROL,INA WATER SE�VICE, INC. OF NC" on the Easement Map with
the exception of the grass golf mrse as such course exists as at the date of this
Agreement, which is located in t
s designated as P-3/4 and P-5 on the Easement
Map; t
(d) all property on the Easement Ma in which existing water distribution and
wastewater collection lines are locale
ocat ,d
(e) all property on the Easement Map on which facilities interconnecting the
Monteray Shores and Corolla Light water systems are located.
1.8 "Easement Map" shall mean Sheet 1 of 4, Sh6 of4, Sheet 3 of 4 and Sheet 4
of of the Easement Map for Carolina Water Service Inc., of prepared by Stroud
Engineering P-A., Sheet 1 of which is dated February 10, 2005, kheet 2 of which is dated
September 8, 2005, and Sheets 3 and 4 of 4 which are dated Februol� 1.7, 2005, Sheet 1 of 4 is
recorded in plat cabinet I, slide 66, sheet 2 of 4 in plat cabinet I, s1i4� $7, sheet 3 of 4 in cabinet
.I, slide 68 and sheet 4 of 4 in plat cabinet I, slide 69 in the affice of t),&Currituck County
Bonk 1059 Page 593

g00K .10 5 9 PA5E 0 5'J 4
Register of Deeds. "Easement Map" shall also include Sheets C-1, C-2 and C-3 as prepared by
Robert G. Burgin Jr., Inc. for Carolina Water Service, Inc. of NC on May 31, 2004 and attached
C�o the Settlement Agreement between Carolina Water, Monteray Shores, Buck Island and the
?Oblic Staff dated September 8, 2004.
1.9 "Effective Date" shall have the meaning set forth in the Preamble to this Effluent
E,as r ent.
Y'-
9)1 Q ".Effluent Easement" shall mean this Effluent Easement, including all exhibits and
scbeduld6ereto, if any, as may be amended from time to time.
1.11 O"MSI" shall have the rneanmg set forth in the Preamble to this Effluent Easement,
1.12 SI Asset Purchase Agreement" shall mean that certain. Asset Purchase
Agrecment, dat of December 19, 2005, between CWS and MSI.
1.13 "M perty" shall mean all property owned by MSI that has been or will be
encumbered by the ent Easement granted herein for spray irrigation with Treated
Wastewater (as defin below).
1.14 "NCUC" shall mean the North Carolina Utilities Commission.
1.15 "Party" and Mies" shall have the meanings set forth in the Preamble to this
Effluent Easement. 0
1.16 "Permit" shall tree permit for operation of the Wastewater Treatment System
and/or Spray Irrigation Facilities i5s�ed by DW(), as the same may be modified or renewed from
tune to time. 0
'.>
1.17 "Plant" shall mean the vf�tewater treatment plant located within the Service
Area. `�
1.19 "POA" shall mean the Mon tekr r Shores, Buck Island and. Tim Buck 11 Property
Owners Associations. V0
1.19 "POA Property" shall mean all of real property within the Service Area that
has been dedicated or otherwise conveyed to the P�.
1.20 "Public Staff" shall have the meaning1�)Worth in the Preamble to this Effluent
Easement.
1.21 "Pumping Station" shall mean a certain pumph use that is located adjacent to the
Wet -Weather Storage Pond, the function of which is to puns��reatad Wastewater to and through
the Spray Irrigation Facilities (as defined below).
0
1.22 "Purchased Facilities" shall mean the water prod` n treatment, storage and
disibutian facilities, fixtures and equipment and assets and the se,collection, treatment and
disposal system facilities, fixtures, equipment and assets purchased ISt. WS from MSI and B11
t�
6
0
Sook 1059 Page 594

BOCK 1059PAC, E0501
pursuant to the Settlement Agreement, the MSI Asset Purchase Agreement and the BII Asset
Y Purchase Agreement, as more particularly described on Exhibit A.
1.23 "Purchased Property" shall mean the rcal property acquired by CWS from MSI
artdCBII pursuant to the Settlement Agreement, the MSI Asset Purchase Agreement and the BE
Aso'Purchase Agreement, as more particularly described on Exhibit B.
vY.24 "Service Area" shall mean (i) Phases I and II of the Monteray Shores PUD within
CWS's1�i�o� teray Shores service area in Currituck County, North Carolina and (ii) CWS's Buck
Island anTTim Buck Il service area in Cunituck County, North Carolina,
1.25'd"Settlement Agreement" shall mean that certain Settlement Agreement in NCUC
Docket No. 4, Si* 236, dated September 8, 20(A, among CWS, MSI, BII and the Public
Staff. `yj.
1.26 "S Areas" shall paean all areas of the BII Property, MSI Property, POA
Property, and other d upon which CWS has obtained or will obtain a Permit to dispose of
Treated Wastewater ugh the process of spray irrigation as designated on the Easement Map.
1.27 "Spray Irrigation Facilities" shall mean all water lines, pumping stations, pumps,
booster pumps, irrigation and spray devices, controls and other devices or facilities used in the
application of Treated Wast, ter from the Wastewater Treatment System upon the Spray Area,
together with all appurtenantI�sements.
O
1.28 "Treated Waste' shaft mean the wastewater that has been treated by CWS to
the point that it meets all quality 11�*ds required by the Permit.
1.29 "Wastewater Treatrn ,ystern" shall mean the Plant, the collection system that
delivers wastewater to the Plant, the h g ponds, ponds, monitoring wells, and other facilities
used in the collection, treatment, holdin discharge of the wastewater except the Spray
Irrigation Facilities.
1.36 "Wet -Weather Storage fond' I heats the facility designed to store Treated
Wastewater that is available for spraying via t pray Irrigation Facilities (as defined above).
2. CWS Oblisations and Agreements.
2.1 QMration and Maintenance of the W water Treatment System. CWS shall
operate and maintain the Wastewater Treatment Syste s required by the Permit and in a
manner consistent with this Effluent Easement and with all applicable laws, regulations, and
ordinances, including, without limitation, taking such actions as are necessary to ensure that the
Treated Wastewater produced by the Wastewater Treatment �S�ystem complies witb the Permit
and all application standards.
22 Capacity of Wastewater Treatment System dgadation of Users. CWS agrees
to provide wastewater treatment services i.a all residents of the S Area, including 488
single-family residential customer connections and 79 commercial �Pmunts.
Book 1059 Page 595

ADDK 105" 9,FAH 659G
2.3 Permi ' and Constriction of hurovements to the Wastewater Treatment
System and Spray Irrigation Facilities.
O (a) CWS shall, as part of the renewal and modification of the Permit
�ing as of the Effective Date and as and if required by DWQ in the future as a condition of
tkue�errnit, seek approval from DWQ to:
(i) construct and operate spray irrigation facilities on an
additional approximately 9.5 acres of spray irrigation facilities within the green
space and open area of the Monteray Shores service area.
d (ii) construct and operate spray irrigation facilities on an
OAdditional approximately 9.5 acres of spray irrigation facilities within the green
and open area of the Buck Island/Tirn Buck 11 service area.
(ui) make any improvements required to allow usage of the
entirpray Areas for spray irrigation.
CWS shall begin conQ�ation of the foregoing improvements within 90 days of DWQ approval
thereof and complete construction and place the facilities into operation in a timely manner.
(b) r-"As and if required by DWQ, CWS further shall make the fallowing
improvements to the Spray it*tion Facilities in a timely manner:
(i Install computer controls to allow remote operation of all
spray irrigation facilities; \-�111
(ii) ghstall piping to allow delivery of Treated Wastewater to
the green space and open area 46igned for spray irrigation;
(iii) lnstdthe Wet -Weather Storage Pond.
(c) Should CWS trust and operate such spray irrigation facilities,
CWS shall i.n such construction and operatio pair and replace any and all vegetation, streets,
sidewalks, ponds and similar stricture or Ian ing damaged thereby.
3. B1I's and MSI's Obligation and Agreemen
3.1 BIl Ace tance of greafed Wastewate�el and if required by DWQ, BII shall
accept for irrigation and to disperse to permitted Spray Areas via the Spray Irrigation Facilities
the following quantities of Treated Wastewater:
(a) Up to 41,375,480 gallons ann(ly upon DWQ's requirement that
spray irrigation facilities be installed and used for effluent dispOsal;
0
(b) Such additional quantities of Trued Wastewater as mutually
agreed upon by CWS and BII- N-11A
�r
0
0�
Look 1059 Page 596

BOOK 105 9PAGE 00"5
3.2 MSI's Acceptance of Treated Wastewater. MSI and/or any successor in interest
to the spray area shall accept for irrigation and to disperse to permitted Spray Areas via the Spray
(Jrrigation Facilities the following quantities of Treated Wastewater:
(a) Up to 75,504,480 gallons annually upon DWQ's requirement that
spr�Wirrigation facilities be installed and used for effluent disposal;
�' (b) Such additional quantities of Treated Wastewater as mutually
agreedgn by CWS and MSI.
4. Grant of Easements.
10
4.1 C MSI, its successors and assigns, and BII hereby grant, convey and assign to CWS
and its respectfa successors and assigns forever, perpetual easements over, across and under the
Easement Ar the benefit of the Purchased Property for the purposes of (i) installing,
maintaining, ins g, operating and repairing sufficient additional drain field facilities,
facilities to lower ater table and effluent reuse disposal facilities to permit CWS to lower
the water table and t txansport effluent from the wastewater table and to transport effluent from
the wastewater treatment facilities to the locations where additional drain field disposal or spray
irrigation can occur, (ii) dispersing effluent through expanded or additional disposal fields or
through spray irrigation, (iii)ing existing ponds for use as holding or settlement impoundments
for treated effluent leakage ettlement, and (iv) accessing all water and sewer system facilities,
provided that such grant does'�iot interfere with access to or use of lots. The rights, assignments
and casements granted herein I allow such spraying and related activities on the Easement
Areas. The rights, assignments eats granted., conveyed and assigned pursuant to this
Effluent Easement are allowed wi ut payment of any fee or other charge being made therefor.
MSI and BIT shall not encumber an� rtion of the Development Property, or engage in any
activity therein, or grant any other irtr st or privilege therein to any other party, that would
interfere with the enjoyment by CWS o0s rights created by this Effluent Easement, provided
that the Development Property or any pa.oereof care be conveyed to a PCA subject to this
Easement Agreement
4.2 MSI and BIT further hereby grew, convey and assign to CWS and its respective
successors and assigns forever, perpetual ease is aver, across and under the Development
Property for the benefit of the Purchased Pro r ingress, egress, regress and access to and
from the Easement Areas, the Purchased Property the Purchased Facilities, including the
Tights to construct, maintain, and repair the water l located thereon and to remove trees,
bushes, undergrowth and any other obstructions inte g with the location, construction,
operation, use and maintenance thereof, without payme t of any fee or other charge being made
therefor. NISI and BIT shall not interfere with or permit any other party to interfere with the right
of ingress, egress, regress and access of CWS granted hereby_ In the exercise of such right of
ingress, egress, regress and access, CWS shall, where possil;(�rse existing roads, paths, and
other ways of travel. CWS shall have no obligation to mainta'l)such roads, paths, or other ways
of travel, but shall exercise ordinary care in their use of the same Where roads, paths, or other
ways of travel do not exist, MSI and Bl1 shall make reasonable e to specify ways of travel
for CWS's use so as to permit CWS to enjoy, the privileges createcW' Ajs Effluent Easement
without undue interference_
Book 1059 Page 597

4.3 MSI, its successors and assigns, conveys and assigns to CWS and its respective
successors and assigns all easement and irrigation rights retained by NISI over, across and under
Easement Areas depicted on Easement Map Sheet 3 of 4 of the Easement Map for Carolina
Wofer Service, Inc. of NC, for the benefit of installing, maintaining, inspecting, operating and
TepOzing effluent reuse disposal facilities and to disperse effluent through spray irrigation. The
rigis e, assignments and easements granted herein shall allow such spraying and related activities
on tlasement Areas. The rights, assignments and easements granted, conveyed and assigned
pursukit to this Effluent Easement are allowed without payment of any fee or other charge being
made t1t or.
4A To have and to hold said easements unto CWS, its heirs, successors and assigns
forever, as appurtenance to the Purchased Property.
5. Spray 1s. The Parties shall work cooperatively to develop protocols for the
operation of the y Irrigation Facilities (the "Spray Protocols'), including, at a minimum;
(a) 0 he recommended time, sequence, and/or amount of spray events.
(b) 911agement objectives .for wet weather storage pond volumes.
(c) The circumstances and conditions under which CWS shall perform, and is
not required to perform, sprqeevents.
(d) CWS's�r@ligations to report spray irrigation events to BII and/or MSI or
the respective POAs, to notify Rand/or MSI or the respective POAs of other specified events
and corrdrtions. \A-`
(e) The Parties sl k negotiate in good faith to develop mutually acceptable
Spray Protocols, 1�
6. Miscellaneous
6.1 Furtber Assurances and Acti The Parties hereto shall, without further
consideration, promptly take such other action , iIlowiog the execution . and delivery of this
Effluent Easement and execute and deliver such ' er documents as the other Parties hereto may
reasonably request in order to consummate the tr tions contemplated by, and give effect to,.
this Effluent Easement. The Parties further shall cooperatively (i) to seek and support the
issuance of the Permit consistent with the terns of tWfiluent Easement; (ii) to oppose any
permit term, condition or action that is inconsistent wi this Effluent Easement, and (iii) to seek
expedited approval by DWQ for the construction and operation of spray irrigation facilities in the
green space and open area,
6.2 Notices. Any and all notices or other comm.' tions required or permitted
hercunder shall be in writing and shall be delivered personally hand or by recognized
overnight courier, telecopied or mailed (by registered or certifi rail, postage prepaid) the
Parties hereto at the following addresses. ��
d
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Book 1059 Page 598

6.3
`10
Y"
BOOK 10 5 9 FAGE 05 J
To CWS: Carl Daniel
Regional Vice President
Carolina Water Service, Inc. of North Carolina
5701 Westparic Drive, Suite 101
Charlotte, NC 29210
Facsimile: [phone]
With a copy to,-
6
O
To BIl
Christopher J. Ayers
Hunton & Williams
P.O. Box 109
Raleigh, NC 27602
Facsimile: [phone]
George A. Thornton, ELI
I I I Settlers Lane
Duck, NC 27949
Facsimile: [phone]
Witlt�copy to: Thomas P. Nash
Trimpi, Nash & Harmon, LLP
200 N_ Water Street
Elizabeth City, NC 27909
�A' Facsimile: [phone]
To MSI: Robert DeGabrielle
5299 Pennock Point Road
Jupiter, FL 33458
Each such notice or other communication sha 1 be effective (i) if given by telecopier, when such
telecopy is transmitted to the telecopiek7such.
ecified above (with confirmation of
transmission), or (d) if given by any other melivered at the address specified above;provided, a copy thereof is concurrently maitended recipient(s) thereof by first class
mail, postage prepaid. Any Party by noticcordance with this section to the other
Parties may designate another address (or tmber) for receipt of notices hereunder.
Notices by a Party nay be given by counsel
6.4 Relationship to Actiorts.by.DWO and NCUC. No Party shall be obligated to take
any action pursuant to this Effluent Easement 6) which requires approval by DWQ or NCUC
unless such approval is provided; (ii) which would be in viola 'on of a DWQ permit, an NCUC
order, or any applicable law or regulation; or (iii) which woue rendered impractical or
unlawful as a result of an action by DWQ or NCUC. O
6.5 Indemnities. Each. Party shall indemnify the othe>� nst any damage, expense
or loss suffered by any of them resulting from any third -party ciait�"sing out of such
indemnifying Party's breach of its obligations under this Effluent Eaent. If any third -party
Book 1059 Page 59.9

claim which is covered by this Section 6.4 is made against any Party, such indemnified Party
shall give written notice of such claim to the indemnifying Patty; provided, however, that failure
give such notice skull not affect the right to indemnification hereunder except to the extent of
r(val prejudice. The indemnifying Party shall have ten days from the receipt of such notice to
94101written notice to such indemnified Party of its intention to defend or dispute such claim,
whkol€ written notice will acknowledge the obligation of the indemnifying Party to indemnify
such indemnifed Party against such ciairn_
0 Pollution Liability Insurance. CWS shall maintain pollution liability insurance
coverag4least as broad as the coverage it currently has, the purchase of which the Parties
agree to lea onable, necessary and prudent cast of operating the Wastewater Treatment
System. C shall provide to the other parties a certificate of insurance any time any such
coverage ch after the signing of this Effluent Easement.
6.7 ce of Law and Specific Performance. This Effluent Easement shall be
interpreted under aws of the State of North Carolina and enforced in the courts of North
Carolina, which are eby agreed to be an appropriate venue for any action arising out of this
Effluent Easerent_ tout limiting the remedies that may be availabie to any Party to this
Effluent Easement al law or equity or under statute, the Parties agree that the following
provisions are material to this Effluent Easement, the breach of which can cause irreparable
harm. (i) CWS's permitting d construction of improvements to the Wastewater Treatment
System and Spray hTigatio ifities under Section 2.3 of this Effluent Easement, (ii) BII's
obligation to accept the amo of Treated Wastewater specified in Section 3.1 of this Effluent
Easement, and (iii) MSI's obli to accept the amounts of Treated Wastewater specified in
Section 32 of this Effluent Ease .The Parties agree that the provisions listed rut the
preceding sentence can be specific I�l enforced, including through injunctive relief.
6.8 Relationship of Partie n the operation of the Spray Irrigation Facilities and the
acceptance and application of' tewater, the relationships of CWS to BIf and CWS to
MST are that of independent contractor_
6.9 Waivers and Amendments-, Irl6-Contractual Remedies; Preservation of
Remedies. This Effluent Easement rnay be arOnded, superseded, canceled, renewed or extended
only by a written instrument signed by the Parr hereto. The provisions hereof may be waived
only in writing by the Parties hereto. Net delay e part of any Patty in exercising any right,
power, or privilege hereunder shall operate as a w r thereof, nor shall any waiver on the part
of any party of any such right, power, or privilege, IV`Vany single or partial exercise of any other
such right, power, or privilege, preclude any further e ise thereof or the exercise of any other
such right, power, or privilege. Except as may be otheiwise provided herein, the rights and
remedies herein provided are cumulative and are not exclusive of any rights or remedies that any
party may otherwise have at law or in equity.
6. 10 Successors and Assigns. This Effluent Easemar,), all of its provisions, and all of
the rights, privileges and obligations granted, created or assume hereunder, shall be binding
upon and shall inure to the benefit of the parties hereto and their ctive subsidiaries,
successors and assigns_ The Parties specifically intend that, upon Ps and Bll's transfer of the
Wastewater Treatment System to C W S, this Effluent Easement shalYI;e binding upon and shall
�Y`1
Book 1059 Page 600

Bou 10 0" 9 GE0601
inure to the benefit of CWS; provided that CWS shall remain obligated under this Effluent
Easement to meet its obligations under Section 2.3 of this Effluent Easement, regardless of any
uch transfer of ownership. The Parties further acknowledge that in the future, CWS may sell
Wastewater Treatment System to an unrelated third party, provided that CWS, $II and MSI
s remain obligated under this Effluent Easement to meet their obligations under Sections 2.3,
3. L#d 3.2 of this EI? luent Easement, regardless of any such transfer of ownership.
�he Parties further acknowledge that in the future MSI may sell or transfer the easement
area to 0 unrelated third party and that any obligation created by this easement shalt transfer
with the �aperty. It is intended that any obligation created under this agreement shall run with
the land. d
6.11 uthori to l xecute Effluent l acement. Each of the undersigned represents and
warrants that h she is fully authorized to enter into this Effluent Easement and., by doing so,
to bind the appr �e party. Each party shall provide to the other parties copies of appropriate
authorizing resole s as may be necessary to matte this Effluent Easement binding upon that
PAY•
6.12 Exhibit Any and all Exhibits and Schedules attached hereto, if any, are hereby
incorporated by reference into, and made a part of, this Effluent Easement.
6.13 CountemartsO�bis Effluent Easement may be executed in any number of
counterparts, each of which so) be deemed to be an original as against any Party whose
signature appears thereon, and 0 of which shall together constitute one and the same inshument.
This Effluent Easement shall beZ d@ic binding when one or more counterparts bereof.,
individually or taken together, sha7�ar the signatures of all of the Parties reflected hereon as
the signatories. 0
6.14 Recordation, Duration+ WS shall record this EffluentEasement in the Register
of Deeds of Currituck County, North Cat CWS's expense. The provisions of this
Effluent E,ascment will run with and in to the benefit of the Purchased Property, will be
binding upon the Development Property ancln�ill be and remain in effect until such time as a
document terminating this Effluent Easement a signed by alf of the owners of the Purchased
Property and recorded in the public land record(lof Currituck County.
[The remwn4er of this page furs bi intentionally left blunkl
O
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Book 1059 Page 601

BUY
IN WITNESS WHEREOF, the parties have caused this Effluent Easement to be duly
executed in their respective corporate names, all by authority duly given, the day and year first
above written.
0
CAROLINA WATER SERVICE, INC. OF
NORTH CAROLINA, a North Carolina
Y " corporation
By:
Name: /
OTitle: r-
0
STATE OF NOR CAROLINA §
COUNTY OFILL§
I certify that the following person persomlly appeared before me. this day,
acknowledging to me that he or she signed the foregoing document in the capacity ,indicated
thereon:
Date: jlk" u � �'_ �,� 200
N,
Ci Notary Public
Print Name: `0 {- � 1�
My Commission Expires:o Z�f
[Official Seal) M j t
C� ca WAM
"`1-:,4'BURG.C' .-
6
0
n�
Book 1059 Pate 602

BOOK 1059FL;'EC'M
MONTERAY SHORES, INC., a North
Carolina corporation
0 By.
Name:
Title: Ey=ga s
STATE�FLORIDA
COUNTY ALM BEACH §
The foregoing trumez3t was acknowledged before me this 9 day of
�00 by c. b c 1t rc_ He is personalty —known to me or has
produced as identification.
!< A
lory
NaAueBc - Sknke of Ftorlda
�rccxnr3le�lcaFiq�ss�30.� -
' s commlz f # oo 359M5 Notary Public, State of Florida
bonOedByNaSonu A—. Print Name: Iv-k-- l-
[ �
My Commission Expires: a
[Official Seal] YI"
0
P}�
d
0
d
0
Book 1059 Page 603

BDDK 10 5
SUCK ISLAND, INC_, a North Carolina
corporation
O By:.r..
Name:
Title:
STAT qA §
COUNTY O §
1, +�� , Notary Public, certify that •A e., a
oh -ally efore me this day and ackno ed�that he is
of Buck Island, Lac., a North Carolina corporation and that he
as being being authorized to do so, executed the foregoing on behalf of the
corporation.
Witness my hand and official seal, this the (o day of ;
NotaryP ublic
Print Name: G— Sa u ayF di�1 is r, f�
My Commission Expires: +F•r'N.+r•rri+
[Official Seal] Q�
6
O
2441 R OW5 S 9 EMF U5 730323M
6
a
Book 1059 Page 604