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HomeMy WebLinkAboutWQ0009772_Final Permit_19941031State of North Carolina Department of Environment, TA Health and Natural Resources Division of Environmental Management �Jr James B. Hunt, Jr., Governor Jonathan B. Howes, Secretary A. Preston Howard, Jr., P.E., Director October 31, 1994 Mr. Robert R. DeGabrielle, President Monteray Shores, Inc. Mr. Buck Thornton, President Ships Watch, Inc. (Buck Island) 821 Ocean Trail, Suite 4 Corolla, North Carolina 27927 Subject: Permit No. WQ0009772 Monteray Shores, Inc. Ships Watch, Inc. (Buck Island) Monteray Shores and Buck Island Subdivisions Wastewater Rotary Distributor Facilities Currituck County Dear Mr. DeGabrielle and Mr. Thornton: In accordance with your application received July 26, 1994, we are forwarding herewith Permit No. WQ0009772, dated October 31, 1994, to Monteray Shores, Inc. and Ships Watch, Inc. (Buck Island) for the continued operation of the subject wastewater rotary distributor facilities. This permit shall be effective from the date of issuance until September 30, 1999, and shall be subject to the conditions and limitations as specified therein. Please pay particular attention to the monitoring requirements in this permit. Failure to establish an adequate system for collecting and maintaining the required operational information will result in future compliance problems. If any parts, requirements, or limitations contained in this permit are unacceptable, you have the right to request an adjudicatory hearing upon written request within thirty (30) days following receipt of this permit. This request must be in the form of a written petition, conforming to Chapter 150B of the North Carolina General Statutes, and filed with the Office of Administrative Hearings, P.O. Drawer 27447, Raleigh, NC 27611-7447. Unless such demands are made this permit shall be final and binding. If you need additional information concerning this matter, please contact Mr. Michael D. Allen at (919) 733-5083. Sincerely, �� A. Prest Howard, Jr., P.E. cc: Currituck County Health Department Quible & Associates, P.C. Washington Regional Office, Water Quality Washington Regional Office, Groundwater Jack Floyd, Groundwater Section, Central Office Training and Certification Unit (no revised rating) Facilities Assessment Unit P.O. Box 29535, Raleigh, North Carolina 27626-0535 Telephone 919-733-5083 FAX 919-733-9919 An Equal Opportunity Affirmative Action Employer 50% recycled/ 10% post -consumer paper NORTH CAROLINA ENVIRONMENTAL MANAGEMENT COMMISSION DEPARTMENT OF ENVIRONMENT, HEALTH 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 Monteray Shores, Inc, and Ships Watch, Inc. (Buck Island) Currituck County FOR THE continued operation of a 360,000 GPD wastewater treatment facility consisting of a bar screen, dual 45,000 gallon influent surge tanks with dual 150 CFM blowers and duplex _125 GPM pumps, a 360,000,. gallon aeration basin, three (3) 410 CFM blowers and three (3) 450 CFM blowers, two (2) 20,106 gallon clarifiers and one (1) 35,906 gallon clarifier, two (2) 27,000 gallon sludge holding tanks, two (2) traveling bridge tertiary filters, gas chlorination, a 12,500 gallon chlorine contact chamber, a 5,000 gallon dosing tank with four (4) 80 GPM pumps and eight (8) 100 foot diameter rotary distributors to serve Monteray Shores, Phase I and Phase II, and Buck Island Subdivisions, with no discharge of wastes to the surface waters, pursuant to the application received July 26, 1994, and in conformity with the project plan, specifications, and other supporting data subsequently filed and approved by the Department of Environment, Health and Natural Resources and considered a part of this permit. This permit shall be effective from the date of issuance until September 30, 1999, and shall be subject to the following specified conditions and limitations: I. PERFORMANCE_ STANDARDS I- In the event that the facilities fail to perform satisfactorily, including the creation of nuisance conditions, the Permittee shall take immediate corrective actions, including those actions that may be required by this Division, such as the construction of additional or replacement wastewater treatment or disposal facilities. 2. This permit shall become voidable if the soils fail to adequately assimilate the wastes and may be rescinded unless the facilities are installed, maintained, and operated in a manner which will protect the assigned water quality standards of the surface waters and ground waters. The ponding of wastewater on the surface of the distribution field when the dosing cycle commences shall be considered as evidence of failure of the soils to adequately assimilate the wastewater. Additionally, such failure shall be interpreted as a violation of this permit condition. 3 . The residuals generated from these treatment facilities must be disposed in accordance with General Statute 143-215.1 and in a manner approved by the North Carolina Division of Environmental Management. 4. Adequate measures shall be taken to divert stormwater from the high rate infiltration area and to prevent wastewater runoff. 5. Diversion or bypassing of the untreated wastewater from the treatment facilities is prohibited. 8. The issuance of this permit shall not relieve the Permittee of the responsibility for damages to surface or groundwaters resulting from the operation of this facility. 9. The following buffers shall be maintained: a) 400 feet between high rate infiltration unit and any habitable residence or place of public assembly under separate ownership or which is to be sold, b) 200 feet between high rate infiltration unit and any private or public water supply source and any streams classified as WS or B, c) 200 feet from mean high water between high rate infiltration unit and any "SA" or "SB" classified surface waters, d) 200 feet from normal high water between high rate infiltration unit and any other stream, canal, marsh, or coastal waters, e) 200 feet from normal high water between high rate infiltration unit and any Class I or Class II impounded reservoir used as a source of drinking water, f) 200 feet between high rate infiltration unit and any other lake or impoundment, g) 200 feet between high rate infiltration unit and any Drainage systems (ditches, drains, surface water diversions, etc.) and .from any groundwater lowering and surface drainage ditches, h) 100 feet between high rate infiltration unit and property lines, i) 50 feet between treatment units and property lines, and j) 50 feet between high rate infiltration unit and other treatment units and public right of ways. Some of the buffers specified above may not have been included in previous permits for this waste treatment and disposal system. These buffers are not intended to prohibit or prevent modifications, which are required by the Division, to improve performance of the existing treatment facility. These buffers do, however, apply to modifications of the treatment and disposal facilities which are for the purpose of increasing the flow that is tributary to the facility. These buffers do apply to any expansion or modification of the high rate infiltration areas and apply in instances in which the sale of property would cause any of the buffers now complied with, for the treatment and disposal facilities, to be violated. The applicant is advised that any modifications to the existing facilities will require a permit modification. 10. A usable green area shall be maintained for wastewater disposal. The green area shall have the capability of accommodating the average daily flow of the facility being served without exceeding the loading rates of the green area. A "green area", as defined in 15A NCAC 2H .0404 (g)(7), is 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. II. OPERATION AND MAINTENANCE REQUIREMENTS I . The facilities shall be properly maintained and operated at all times. 4 2. Upon classification of the facility by the Certification Commission, the Permittee shall employ a certified wastewater treatment plant operator to be in responsible charge (ORC) of the wastewater treatment facilities. The operator must hold a certificate of the type and grade at least equivalent to or greater than the classification assigned to the wastewater treatment facilities by the Certification Commission. The Permittee must also employ a certified back-up operator of the appropriate type and grade to comply with the conditions of Title 15A, Chapter 8A, .0202. The ORC of the facility must visit each Class I facility at least weekly and each Class II, III, and IV facility at least daily, excluding weekends and holidays, and must properly manage and document daily operation and maintenance of the facility and must comply with all other conditions of Title 15A, Chapter 8A, .0202. 3. The application rates for the high rate infiltration system shall not exceed 5.73 GPD/ft2. 4. The facilities shall be effectively maintained and operated as a non -discharge system to prevent the discharge of any wastewater outside of the high rate infiltration disposal area, which result from the operation of this facility. 5. No traffic or equipment shall be allowed on the disposal area except while installation occurs or while normal maintenance is being performed. 6. The rotary distribution fields shall be raked twice weekly during the months April through October and once a week during the months of November through March. 7. The screenings removed from the wastewater treatment plant shall be properly disposed in a sanitary landfill or by other means which have been approved by this Division. 8. Vegetative growth must be kept out of the rotary distribution areas at all times. All vegetation must be removed manually so that minimal disturbance will occur to the disposal area. 9. The application of chemicals to the distribution field(s) is expressly prohibited. 10. An automatically activated standby power source 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. 11. The flow measurement device shall be calibrated annually by a representative of a firm which is routinely engaged in the calibration of flow measurement devices. Records of this calibration, including all information pertinent to the calibration, shall be available during any inspection by Division staff. 12. Diffusers shall removed from the aeration basin and serviced during the months of March, June, August, and October. Additional servicing may be required, and should be performed on an as needed basis by the operator. Records of this maintenance shall be maintained by the permittee. 13. The chlorine tablets used in the disinfection facility shall be of the kind and type specified in the plans and specifications approved by the Division. III. MONITORING AND RERO TING__REQUIREMENTS Any monitoring deemed necessary by the Division of Environmental Management to insure surface and ground water protection will be established and an acceptable sampling reporting schedule shall be followed. K' 2. 3. As an indicator of proper operation and maintenance, the facility shall produce an effluent in compliance with the following limitations: Parameter Monthly Averagea Daily Maximumb Flow .360 MGD BODS 10 mg/1 15 mg/l NH3 as N 4 mg/l 6 mg/l TSS 5 mg/l 10 mg/l Fecal Coliform 5 per 100 ml a Monthly average shall be the arithmetic mean of all samples collected during the reporting period. b Daily maximum shall be the maximum value of all samples collected during the reporting period. The effluent from the subject facilities shall be monitored, by the Permittee, at the point prior to discharge to the long term holding pond for the following parameters: Flow BOD5 (5-day, 20°C) NH3 as N TSS Fecal Coliform Settleable Matter Residual Chlorine NO3 TDS TOC Chloride Influent or Effluent Continuous Recording Effluent *2/Month Composite Effluent *2/Month Composite Effluent *2/Month Composite Effluent of first pond *2/Month Grab Effluent Daily Grab Effluent Daily Grab Effluent **Triannually Grab Effluent **Triannually Grab Effluent **Triannually Grab Effluent **Triannually Grab The effluent pH shall not be less than 6.0 standard units nor greater than 9.0 standard units. * 2/Month sampling frequency only during the months of April through October. During the remainder of the year, these parameters shall be monitored monthly. ** Triannually sampling shall be conducted during March, July, and November. If Groundwater sampling indicates or predicts problems with compliance with of the Groundwater Standards, this permit will be modified to include additional and/or more restrictive limitations. Three copies of all monitoring data, as specified in condition I1I.2, shall be submitted on or before of the last day of the month following sampling to the following address: NC Division of Environmental Management Water Quality Section Facility Assessment Unit Post Office Box 29535 Raleigh, N.C. 27626-0535 4 4. A record shall be maintained of all residuals removed from this facility. The record shall include the name of the hauler, the permit authorizing the disposal or a letter from a municipality agreeing to accept the residuals, the date the residuals were hauled, and the volume of residuals removed. 5. A maintenance log shall be maintained at this facility including, but not limited to, the following items: a. Daily sampling results including residual chlorine, settleable matter, and dissolved oxygen in the aeration basin and at the clarifier weir; b. Visual observations of the plant and plant site; c. Record of preventative maintenance (changing of filters, adjusting belt tensions, alarm testing, diffuser inspections and cleanings, etc.); d . Date of calibration of flow measurement device; e. Date and results of power interruption testing on alternate power supply; and f. Dates fields were raked and arms inspected. 6. Noncompliance Notification: The Permittee shall report by telephone to the Washington Regional Office, telephone number (919) 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. Any occurrence at the wastewater treatment facility which results in the treatment of significant amounts of wastes which are abnormal in quantity or characteristic, such as the dumping of the contents of a basin or tank, the known passage of a slug of hazardous substance through the facility, or any other unusual circumstances; b. Any process unit failure, due to known or unknown reasons, that renders the facility incapable of adequate wastewater treatment, such as mechanical or electrical failures of pumps, aerators, compressors, etc.; c. Any failure of a pumping station, sewer line, or treatment facility resulting in a by-pass of all or any portion of the influent to such station or facility; or d. Any time that self -monitoring information indicates that the facility is not in compliance with its permit limitations. Persons reporting such occurrences by telephone shall also file a written report in letter form within 15 days following first knowledge of the occurrence. This report must outline the actions taken or proposed to be taken to ensure that the problem does not recur. IV. GROUNDWATER REQUIREMENTS Prior to beginning operations of the new rotary distributors under Phase II, three (3) monitor wells shall be installed to monitor groundwater quality. The well(s) shall be constructed such that the water level in the well is never above or below the screened (open) portion of the well at any time during the year. Each monitoring well shall be located at the review boundary, constructed in accordance with this permit, and approved by the Washington Regional Office. 5 2. Monitor wells MW-1, MW-2, MW-3, MW-4, and the three (3) new wells (MW-5, MW-6, and MW-7) shall be sampled every April, July, September, and November, for the following parameters: NO3 Ammonia Nitrogen TDS TOC pH Water Level Chloride Total Coliforms Volatile Organic Compounds - In November only (by Method 1 or 2 below) Method 1: Method 6230D (Capillary - Column), "Standard Methods For The Examination of Water and Wastewater", 17th ed., 1989 Method 2: Method 502.2 "Methods For The Determination Of Organic Compounds In Drinking Water", U.S. EPA-600/4-88/039 The measurement of water levels must be made prior to sampling for the remaining parameters. The depth to water in each well shall be measured from the surveyed point on the top of the casing. 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. 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/i, 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. If any volatile organic compounds are detected by method 6230D, or the equivalent method 502.2, then EPA methods 604 and 611 must also be run to detect other organic compounds which may be present. The results of all analyses specified in the monitoring requirements, including 604 and 611 if required, must be submitted simultaneously. The results of the sampling and analysis shall be sent to the Groundwater Section, Permits and Compliance Unit, P.O. Box 29535 Raleigh, N.C. 27626-0535 on Form GW-59 [Compliance Monitoring Report Form] every May, August, October, and December. Any additional groundwater quality monitoring, as deemed necessary by the Division, shall be provided. 4. All wells that are constructed for purposes of groundwater monitoring shall be constructed in accordance with 15A NCAC 2C .0108 (Standards of Construction for Wells Other than Water Supply) and any other state and local laws and regulations pertaining to well construction. 5. The Washington Regional Office, telephone number (919) 946-6481, shall be notified at least forty-eight (48) hours prior to the construction of any monitoring well so that an inspection can be made of the monitoring well location. Such notification to the regional groundwater supervisor shall be made during the normal office hours from 8:00 a.m, until 5:00 p.m. on Monday through Friday, excluding state holidays. C 6. Within sixty (60) days of completion of all monitoring wells, the permittee shall submit two original copies of a scaled topographic map (scale no greater than 1 ":100') signed and sealed by a professional engineer or a state licensed land surveyor that indicates all of the following information: a. the location and identity of each monitoring well, b. the location of the waste disposal system, c. the location of all property boundaries, d. the latitude and longitude of the established horizontal control monument, e. the relative elevation of the top of the well casing (which shall be known as the "measuring point"), and f. the depth of water below the measuring point at the time the measuring point is established. The survey shall be conducted using approved practices outlined in North Carolina General Statutes Chapter 89C and the North Carolina Administrative Code Title 21, Chapter 56. The surveyor shall establish a horizontal control monument on the property of the waste disposal system and determine the latitude and longitude of this horizontal control monument to a horizontal positional accuracy of +I- above shall be surveyed relative to this horizontal control monument. The positional accuracy of features listed in a. through e. above shall have a ratio of precision not to exceed an error of closure of 1 foot per 10,000 feet of perimeter of the survey. Any features located by the radial method will be located from a minimum of two points. Horizontal control monument shall be installed in such a manner and made of such materials that the monument will not be destroyed due to activities that may take place on the property. The map shall also be surveyed using the North American Datum of 1983 coordinate system and shall indicate the datum on the map. All bearings or azimuths shall be based on either the true or NAD 83 grid meridian. If a Global Positioning System (GPS) is used to determine the latitude and longitude of the horizontal control monument, a GPS receiver that has the capability to perform differential GPS shall be used and all data collected by the GPS receiver will be differentially corrected. The maps and any supporting documentation shall be sent to the Groundwater Section, N.C. Division of Environmental Management P.O. Box 29535 Raleigh, N.C. 27626- 0535. 7. Upon completion of all well construction activities, a certification must be received from a professional engineer certifying that the monitoring wells are located and constructed in accordance with the Well Construction Standards (15A NCAC 2C) and this permit. This certification should be submitted with copies of the Well Completion Form (GW-1) for each well. Mail this certification and the associated GW-1 forms to the Permits and Compliance Unit, Groundwater Section, P.O. Box 29535, Raleigh, NC, 27626-0535. 8. For the initial sampling of the well as specified elsewhere in the permit, the permittee shall submit a copy of the GW-1 Form (Well Completion Form) with the Compliance Monitoring Form (GW-59) for that well. Compliance Monitoring Forms that do not include copies of the GW-1 form will be returned to the permittee without being processed. Failure to submit these forms as required by this permit may result in the initiation of enforcement activities pursuant to NC General Statutes 143-215.6. 9. The !OMPLIANCE BOUNDARY for the disposal system is specified by regulations in 15A NCAC 2L, Groundwater Classifications and Standards. The Compliance Boundary is for the disposal system constructed after December 31, 1983 is established at either (1) 250 feet from the waste disposal area, or (2) 50 feet within the property boundary, whichever is closest to the waste disposal area. An exceedance of Groundwater Quality Standards at or beyond the Compliance Boundary is subject to immediate remediation action in addition to the penalty provisions applicable under General Statute 143-215.6A(a)(1). 7 In accordance with 15A NCAC 2L, a REVIEW BOUNDARY is established around the disposal systems midway between the Compliance Boundary and the perimeter of the waste disposal area. Any exceedance of standards at the Review Boundary shall require remediation action on the part of the permittee. V . INSPECTIONS 1. Adequate inspection, maintenance, and cleaning shall be provided by the Permittee to insure proper operation of the subject facilities. 2. The Permittee or his designee shall inspect the wastewater treatment and disposal facilities to prevent malfunctions and deterioration, operator errors and discharges which may cause or lead to the release of wastes to the environment, a threat to human health, or a nuisance. The Permittee shall maintain an inspection log or summary including at least the date and time of inspection, observations made, and any maintenance, repairs, or corrective actions taken by the Permittee. This log of inspections shall be maintained by the Permittee for a period of three years from the date of the inspection and shall be made available to the Division of Environmental Management or other permitting authority, upon request. 3 _ Any duly authorized officer, employee, or representative of the Division of Environmental Management may, upon presentation of credentials, enter and inspect any property, premises or place on or related to the disposal site or facility at any reasonable time for the purpose of determining compliance with this permit, may inspect or copy any records that must be maintained under the terms and conditions of this permit, and may obtain samples of groundwater, surface water, or leachate. V I. GENERAL CONDITIONS This permit shall become voidable unless the facilities are constructed in accordance with the conditions of this permit, the approved plans and specifications, and other supporting data. 2. This permit is effective only with respect to the nature and volume of wastes described in the application and other supporting data. 3. This permit is not transferable. In the event there is a desire for the facilities to change ownership, or there is a name change of the Permittee, a formal permit request must be submitted to the Division of Environmental Management accompanied by an application fee, documentation from the parties involved, and other supporting materials as may be appropriate. The approval of this request will be considered on its merits and may or may not be approved. 4. The subject wastewater treatment and disposal facilities shall be connected to an operational publicly owned wastewater collection system within 180 days of its availability to the subject facilities, if the subject wastewater treatment or disposal facilities are in noncompliance with the terms and conditions of this non -discharge permit or the governing statutes or regulations. Prior to the initiation of these connection activities, appropriate approval must be received from this Division. 5. The annual administering and compliance fee must be paid by the Permittee within thirty (30) days after being billed by the Division. Failure to pay the fee accordingly may cause the Division to initiate action to revoke this permit as specified by 15A NCAC 2H .0205 (c)(4). 6. Failure to abide by the conditions and limitations contained in this permit may subject the Permittee to an enforcement action by the Division of Environmental Management in accordance with North Carolina General Statute 143-215.6(a) to 143-215.6(c). 7. The issuance of this permit does not preclude the Permittee from complying with any and all statutes, rules, regulations, or ordinances which may be imposed by other government agencies (local, state, and federal) which have jurisdiction. S. A set of approved plans and specifications for the subject project must be retained by the Permittee for the life of this project. 9. The Permittee, at least six (6) months prior to the expiration of this permit, shall request its extension. Upon receipt of the request, the Commission will review the adequacy of the facilities described therein, and if warranted, will extend the permit for such period of time and under such conditions and limitations as it may deem appropriate. 10. The Operational Agreement between the Permittee and the Environmental Management Commission is incorporated herein by reference and is a condition of this Permit. Noncompliance with the terms of the Operational Agreement shall subject the Permittee to all sanctions provided by North Carolina General Statute 143-215.6(a) to 143-215.6(c) for violation of or failure to act in accordance with the terms and conditions of this Permit. Permit issued this the thirty-first day of October, 1994 NORTH CAROLINA ENVIRONMENTAL MANAGEMENT COMMISSION wQ -Yq cc -% Q_ '/L A_ Presto oward, Jr., P)E., Director / Division o nvironmental Management By Authority of the Environmental Management Commission Permit No. WQ0009772 0 :3 O � ONo,�i Q 0 0 U t� T � W aya�� O z 0 zo�zz O o ca Q 'fk� W Qr z Ewa G z3 �Q iVt r •,1r -. Jif Icy !' :'•,i, .'' ti ' 13 � i. 1, - a•rw ... * e,' i l 1_ .7. 7 4`irJ ��i-�4 e 7 S � }� �+ h.f_✓'�. i :, S' r - - y- - .. t �:31 r! rl , 'a - t1n r � A! ' { • f' r .. rr: '•.K,�'• ',Y� i'',Nl�l .i`�•�J 1 I�,i !�' i ' t. ' •• S 1.e' ./ fi 'r l ,}� 4. f I f ry. Pr,;{,``.• a s ''• ~� `7 1 - .�,,�•�f•.,d �' •��. ''Y-•+' �SI~.�..�,,.r•.Fa � ,r et ,Ni+�- .Sr .:f ter'..:.� ` w!n..• � �..k �.ti' 4 •y. :. a; K H e • { -� r i Pj r .r t', f,,• e .•d e. ,... r' r:y! f '�%]-r i'�;.:f,. . e • 1 f y' .9 e rf •Sh 't•. r r- ..- .� � lily ���, I J1 ��t h 1:1 `+ •. , .�t IT • .. � ' I �N /`.N.-' �' � +1 f'�'y a S'%r1 ! . rl T • i •• ; . _ � � t �J. f. i.-'•�ri 1 ..f F� ,'n .Y,i�r+tls f �.�, ��^ •J�,..• �� 1f, l.'�s.i .r - � ... .. YO 1h i! 4 •;T.,' •:l F •l l S'i' � A i (� r'"� � t1 (' .o f 13 a Cry O �0 41 •-4�"f,.lc,l4t•,.,*,''. �ufricuck �� © Y i T Al . . . . Q•+f fagO 1 �J 1 • t\�yf a ' Y y� b \ BOY a ` N a °V) , STATE OF NORTH CAROLINA COUNTY OF CURRITUCK OPERATIONAL AGREEMENT Permit No. (A)OOd 917 a This AGREEMENT made pursuant to G.S. 143-215.1 (dl) and entered into this 25th day of July, 1994, by and between the North Carolina Environmental Management Commission, an agency of the State of North Carolina, hereinafter know as the COMMISSION; and Monteray Shores, Inc. & Ships Watch, Inc. (Buck Island) Corporations registered to do business in the State of North Carolina, and hereinafter known as the DEVELOPERS. WITNESSETH: 1. The DEVELOPERS are the owners of the certain lands lying in Currituck County, upon which they are erecting and will erect dwelling units and other improvements, said developments to be known as Monteray Shores & Buck Island (hereinafter the Developments). 2. The DEVELOPERS have constructed a wastewater collection system with pumps, wastewater treatment works and disposal facilities (hereinafter Disposal System) to provide sanitary sewage sanitary sewage disposal to serve the Developments on said lands. 3. The DEVELOPERS have applied to the COMMISSION for the issuance of a permit pursuant to G.S. 143-215.1 to maintain, and operate the Disposal System. 4. The DEVELOPERS have entered into a Main Facilities Purchase Agreement and Utility Operating Agreement (hereinafter the Agreement) with Carolina Water Service, Inc. of North Carolina, a North Carolina Corporation and Utilities, Inc., a Delaware Corporation, and a private utility engaged in the business of furnishing water and waste water utility services to the public in various areas throughout North Carolina. 5. The COMMISSION desires to assure that the Disposal System of the Developments are properly constructed, maintained and operated in accordance with law and permit provisions in order to protect the quality of the waters of the State and the public interest therein. NOW, THEREFORE, in consideration of the promises and the benefits to be derived by each of the parties hereto, the COMMISSION and DEVELOPERS do hereby mutually agree as follows: 1. The DEVELOPERS have constructed the Disposal System in accordance with the permit and plans and specifications approved by the COMMISSION; and Carolina Water Service, Inc. shall thereafter operate and maintain such systems and facilities. 2. The DEVELOPERS have transferred control of the Disposal System to Carolina Water Service, Inc. on November 15, 1988, and the staff of the Division of Environmental Management has inspected and approved of the facilities. 3. The DEVELOPERS have not transferred, conveyed, assigned, or otherwise relinquished or released its responsibility for the operation and maintenance of the disposal system. 1 4. The DEVELOPERS will be responsible for the expansion of the disposal system as stated in their Main Facilities Purchase Agreement and Operating Agreement between Monteray Shores, Inc. & Ships Watch, Inc, and Carolina Water Service, Inc. of North Carolina, 5. The DEVELOPERS have provided in their Declaration and Association By -Laws that the disposal systems and appurtenances thereto can convey to a private utility all or part of such sewer treatment facilities, and have done so in order to relieve the Homeowners Association of the obligation of operating and maintaining a water and sewer treatment facility. 6. If a wastewater collection system and wastewater treatment and/or disposal facility provided by any city, town, village, county, water and sewer authorities, or other government shall hereinafter become available to serve the Developments, the DEVELOPERS, consistent with their other legal obligations, shall take such action as is necessary to cause the existing and future wastewater of the Developments to be accepted and discharged into said governmental system; and shall convey or transfer as much of the Disposal System, and such necessary easements as the governmental unit may require as a condition of accepting the Developments wastewater, in accordance with the Agreement between the DEVELOPERS and Carolina Water Service, Inc. 7. The agreements set forth in numbered paragraphs 1,2,3,4, & 5 above shall be conditions of any permit issued by the COMMISSION to the DEVELOPERS for the construction, maintenance, repair, and operation of the Disposal System. 8. A copy of this agreement shall be filed at the Register of'Deeds in Currituck County where the Declaration is filed and in the offices of the Secretary of'the State of North Carolina with the Articles of Incorporation of the Association. 2 IN `GVITNES S WHEREOF, this agreement was executed in duplicate originals by the duly authorized representative of the parties hereto on the day and year written as indicated by each of the parties named below: FOR THE ENVIRONMENTAL MANAGEMENT COMMISSION A. Preston Ejoward, Jr., PI., Director Division of Environmental Management o (Date) 3 MONTERAY SHORES, INC. Bob D ' .. . Bob DeGabrielle President (Efate) SHIPS WATCH, INC. (BUCK I AND) By. Buck Thornton, President Buck Thornton, President G1 r 41.E ate)