WQ0014306_Final Permit_20151008

North Carolina Department of Environmental Quality
Pat McCrory Donald R. van der Vaart
Governor Secretary
October 8, 2015
RAY.MOND GOTTLIEB — MANAGING PARTNER
SANDLER UTILITIES AT MILL RUN, L.L.C.
448 VIKING DRIVE, SUITE 220
VIRGINIA BEACH, VIRGINIA 23452
Subject: Permit No. WQ0014306
Eagle Creek WWTP
Reclaimed Water Generation,
Non -Conjunctive Reclaimed
Water Utilization and High -
Rate Infiltration System
Currituck County
Dear Mr. Gottlieb:
In accordance with your permit renewal request received February 20, 2015, we are forwarding'
herewith Permit No. WQ0014306 dated October 8, 2015, to Sandler Utilities at Mill Run, L.L.C. for the
continued operation of the subject reclaimed water generation, non -conjunctive utilization and high -rate
infiltration facilities, as well as the construction only of the wastewater treatment plant expansion.
This permit shall be effective from the date of issuance until September 30, 2020, 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.
For your convenience, customized electronic copies of your facility's NDMR, NDAR-1 and
NDAR-2 reporting forms are available for download at: http://Aortal.ncdenr.org/web/w�/aus/lau/reporting.
Please note the following permit conditions have been removed since the last permit issuance
dated November 13, 2009:
➢ Old Condition I.1. — This permit condition has been met.
➢ Old Condition II.6. — This condition has been modified to accurately define compliance and
review boundaries for a reclaimed water utilization system. See new permit Condition H.11.
Please note the following permit conditions are new since the last permit issuance dated
November 13, 2009:
➢ Condition I.1. and 1.2. — Regarding permit modification and notification requirements for future
construction of the wastewater treatment plant expansion (to its original permitted capacity of
350,000 GPD)
➢ Condition 1.5. -- Regarding compliance schedule for the replacement/repair of the second bank
of UV lights in the disinfection unit.
Non -Discharge Permitting Unit
1617 Mail Service Center, Raleigh, North Carolina 27699.1617
Phone: [phone] Internet: h#tp!//Mrtal,ncdenr.orgtweb/wc
An Equal Opportunity V Affirmative Action Employer— Made in part with recycled paper

Mr. Raymond Gottlieb
October 8, 2015
Page 2 of 3
➢ Condition 11.12. — This condition establishes the compliance boundary for the high -rate
infiltration basin.
➢ Condition 11.13. — This condition establishes the review boundary for the high -rate infiltration
basin.
➢ Condition II.16. — This condition requires any landowner who is not the Permittee and owns
land within the compliance boundary to execute and file with the Currituck County Register of
Deeds an easement running with the land.
➢ Condition II.17.c. — Regarding applicable setbacks for high -rate infiltration basin.
➢ Condition 11.18. — The contract and agreement between the Permittee and owner of the disposal
site (i.e. golf course) is incorporated into the permit.
➢ Condition I11.2. — Regarding requirements for an Operation and Maintenance Plan.
➢ Condition 111.4. — This condition requires a certified operator to be on call 24 hours per day.
➢ Condition IU.9. — Regarding requirements for turbidimeter calibration.
➢ Condition I1I.10. — This condition requires that only effluent from the Eagle Creek WWTP be
applied to the irrigation and infiltration sites.
➢ Condition 111.11. — This condition requires an automatically activated standby power source
capable of powering all essential treatment units to be provided on site.
➢ Condition III.12. — This condition prohibits machinery on the infiltration site.
➢ Condition III.13. — This condition prohibits public access to the reclaimed water generation
and high -rate infiltration facilities.
➢ Condition 1II,20. — This condition requires the Permittee to develop and implement a reclaimed
water education program.
➢ Condition 111.21. — Regarding requirements for notification to the public and/or employees
about the use of reclaimed water, and that reclaimed water is not intended for drinking.
➢ Condition 11I.23. — Regarding requirements for cleaning of the infiltration basin.
➢ Condition IV.6. — Requirements for records tracking of effluent infiltrated in the high -rate
basin.
➢ Condition IV.8. — Requirement for submission of infiltration records for the high -rate
infiltration basin (Form NDAR-2).
➢ Condition IV.10.c. and f. — Regarding maintenance log requirements to include date of
turbidimeter calibration and unpermitted releases of reclaimed water.
➢ Condition IV.13.e. and f. — Regarding non-compliance notification of ponding in or runoff
from the reclaimed water utilization sites and effluent breakout from the infiltration basin.
➢ Condition VIX and VI.9. —Additional general permit conditions.

Mr. Raymond Gottlieb
October 8, 2015
Page 3 of 3
➢ Attachment A — Monitoring parameters are updated for consistency with current Division's
policy (i.e. Total Kjeldahl Nitrogen, Total Nitrogen, and Total Phosphorus are added to the
monitoring regime).
➢ Attachment C — Groundwater monitoring parameters are updated for consistency with current
Division's policy (i.e. Total Phosphorus is added to the monitoring regime).
If any parts, requirements or limitations contained in this permit are unacceptable, the Permittee
has the right to request an adjudicatory hearing upon written request within 30 days following receipt of
this permit. This request shall be in the form of a written petition, conforming to Chapter 150B of the North
Carolina General Statutes, and filed with the Office of Administrative Hearings at 6714 Mail Service
Center, Raleigh, NC 27699-6714. Unless such demands are made, this permit shall be final and binding.
If you need additional information concerning this permit, please contact Chonticha McDaniel at
[phone] or [e-mail].
Sincerely,
p
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

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NORTH CAROLINA
ENVIRONMENTAL MANAGEMENT COMMISSION
DEPARTMENT OF ENVIRONMENTAL QUALITY
RALEIGH
RECLAIMED WATER GENERATION, NON -CONJUNCTIVE RECLAIMED WATER
UTILIZATION AND 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
Sandler Utilities at Mill Run, L.L.C.
Currituck County
FOR THE
operation of a 175,000 gallon per day (GPD) reclaimed water generation, non -conjunctive reclaimed water
utilization and high -rate infiltration system consisting of the:
continued operation of a reclaimed water generation system consisting of: a 89,782 gallon flow equalization
basin with two 243 gallon per minute (GPM) pumps and served by a 310 cubic feet per minute (CFM)
blower; a manual bar screen; a flow splitter box; two 225,000 gallon aeration basins (with one basin
consisting of a 50,000 gallon section and a 175,000 gallon section); a 148,250 gallon clarifier; a 28,220
gallon clarifier; a 37,000 gallon aerated sludge holding tank served by two 1,000 CFM blowers; a 15 cell
travelling bridge filter with a total area of 135 square feet (ft�); an ultraviolet (UV) disinfection unit; a
30,080 gallon effluent dosing tank with two 608 GPM pumps and high-water alarms; approximately 450
linear feet (LF) of 10-inch force main; a stand by generator with automatic transfer switch; a turbidimeter;
a flow meter; and all associated piping, valves, controls and appurtenances; the
continued operation of a high -rate infiltration system consisting of: a 5.5million gallon (MG) high -rate
infiltration basin (in lieu of a 5-day upset pond); and all associated piping, valves, controls and
appurtenances; the
continued operation of a non -conjunctive reclaimed water utilization system consisting of: a 7.431 MG wet
weather storage/irrigation pond; approximately 112.25 acres of irrigation area (with a limited maximum
capacity of 262,625 GPD due to the available irrigation area); and all associated piping, valves, controls
and appurtenances; and the
construction only of the wastewater treatment plant expansion to its original permitted capacity of 350,000
GPD and consisting of the: addition of an aeration blower with 2,000 CFM capacity; addition of a 213 ftZ
of tertiary filter (traveling bridge); additional UV disinfection; expansion of the wet weather
storage/irrigation pond to 10.5 MG; expansion of the non -conjunctive reclaimed water utilization system
to 321,000 GPD as permitted on May 14, 2004; and all associated piping, valves, controls and
appurtenances
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to serve Eagle Creek, with no discharge of wastes to surface waters, pursuant to the application received
February 20, 2015, and in conformity with the project plans, specifications, and other supporting data
subsequently filed and approved by the Department of Environmental Quality and considered a part of this
permit.
This permit shall be effective from the date of issuance until September 30, 2020, and shall be subject to
the following specified conditions and limitations:
I. SCHEDULES
Upon completion of construction and prior to operation of the expanded reclaimed water generation
and non -conjunctive reclaimed water utilization facilities, a permit modification request from the
Permittee, as -built plans and specifications, and 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 proiect is to be
completed in phases and partially certified, the Permittee shall retain the responsibility to track further
construction
tr ctioroe p has d under the same permit and „shall provide a final certificate of completion once
the Mail the Certification to the Division of Water Resources, Water
Quality Permitting Section, 1617 Mail Service Center, Raleigh, NC 27699-1617. [15A NCAC 02T
.0116]
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 modified 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. Prior to adding any wastewater flow from other sources to the subject facility, including the South
Ridge Development, the Permittee shall submit an updated or new agreement between Mill Run Golf
Course and the Permittee with clear language specifying that treated effluent from new sources is
allowed to be irrigated on the golf course. The agreement shall stipulate that the reclaimed water
generation facility must have the ability to irrigate reclaimed water at all times to meet the facility's
disposal requirements. Furthermore, the agreement shall include provisions for continued irrigation to
the golf course if a dispute between the Permittee and Mill Run Golf Course shall arise. [15A NCAC
02T .0108(b)]
4. 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), 02U .0106, 02U .0109]
5. No later than March 1, 2016, the second bank of lights in the ultraviolet (UV) disinfection unit shall be
replaced or repaired, and made operational. [15A NCAC 02T .0108(b)(2)]
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, failure of the utilization areas to adequately assimilate the
reclaimed water or effluent, 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 reclaimed water generation, utilization or infiltration
facilities. [G.S. 143-215.1, 143-213.3(a)]
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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]
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. [I5A NCAC 02C .0108]
4. Effluent quality shall not exceed those specified in Attachment A. [15A NCAC 02T .0108(b)(1), 02U
,0300]
5. Application rates shall not exceed those specified in Attachment B. [15A NCAC 02T .0705(m), 02U
.0401(g), 02U .0402(m)]
6. The following shall be requirements for the reclaimed water distribution, storage, and utilization
facilities:
a. All reclaimed water valves, storage facilities and outlets shall be tagged or labeled to warn the
public or employees that reclaimed water is not intended for drinking. Where appropriate, such
warning shall inform the public or employees to avoid contact with reclaimed water.
b. All reclaimed water piping, valves, outlets and other appurtenances shall be color -coded, taped or
otherwise marked to identify the source of the water as being reclaimed water.
i. Ali reclaimed water piping and appurtenances shall be either colored purple (i.e., Pantone 522)
and embossed or integrally stamped or marked "CAUTION: RECLAIMED WATER — DO
NOT DRINK" or be installed with a purple (i.e., Pantone 522) identification tape or
polyethylene vinyl wrap. The warning shall be stamped on opposite sides of the pipe and
repeated every three feet or less.
ii. Identification tape shall be at least three inches wide and have white or black lettering on purple
(i.e., Pantone 522) field stating "CAUTION: RECLAIMED WATER — DO NOT DRINK."
Identification tape shall be installed on reclaimed water pipelines in a visible manner, fastened
at least every 10 feet to each pipe length and run continuously the entire length of the pipe.
iii. Existing underground distribution systems retrofitted for the purpose of distributing reclaimed
water shall be taped or otherwise identified as noted above. This identification need not extend
the entire length of the distribution system, but shall be incorporated within 10 feet of crossing
any potable water supply line or sanitary sewer line.
c. All reclaimed water valves and outlets shall be of a type, or secured in a manner, that permits
operation by authorized personnel only.
d. Hose bibs shall be located in locked, below grade vaults that shall be labeled as being of non -
potable quality. As an alternative to the use of locked vaults with standard hose bib services, other
locking mechanisms such as hose bibs which can only be operated by a tool may be placed above
ground and labeled as non -potable water.
[15A NCAC 02U .0403]
7. No direct cross -connections shall be allowed between reclaimed water and potable water systems,
unless such connection has been approved by the Department pursuant to 15A NCAC 18C .0406. [15A
NCAC 02U .0403(f)]
8. Reclaimed water distribution lines shall be located at least 10 feet horizontally from and 18 inches
below any water line where practicable. Where these separation distances cannot be met, the piping
and integrity testing procedures shall meet water main standards in accordance with 15A NCAC 18C.
[I5A NCAC 02U .0403(h)]
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9. Reclaimed water distribution lines shall not be less than 100 feet from a well unless the piping and
integrity testing procedures meet water train standards in accordance with 15A NCAC 18C, but in no
case shall they be less than 25 feet from a private well or 50 feet from a public well. [ 15A NCAC 02U
.0403(i)]
10. Reclaimed water distribution lines shall be located at least two feet horizontally from and 18 inches
above any sewer line where practicable. Where these separation distances cannot be met, the piping
and integrity testing procedures shall meet water main standards in accordance with 15A NCAC 18C.
[15A NCAC 02U .04030)]
11. The compliance and review boundaries for the non -conjunctive reclaimed water utilization sites are
established at the property boundary. Any exceedance of standards at the compliance or review
boundary shall require action in accordance with 15A NCAC 02L .0106. [15A NCAC 02H
.0219(k)(1)(C)(i)(III)]
12. The high -rate infiltration basin 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)]
13. In accordance with 15A NCAC 02L .0108, the high -rate infiltration basin's 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 with 15A NCAC
02L .0106. [15A NCAC 02L .0106, 02L .0108]
14. 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)]
15. No wells, excluding Division approved monitoring wells, shall be constructed within the compliance
boundary except as provided for in 15A NCAC 02L .0107(g). [15A NCAC 02L .0107(d)]
16. Except as provided for in 15A NCAC 02L .0107(g), the Permittee shall ensure any landowner who is
not the Permittee and owns land within the compliance boundary shall execute and file with the
Currituck County Register of Deeds an easement running with the land containing the following items:
a. A notice of the permit and number or other description as allowed in 15A NCAC 02L .0107(f)(1);
b. Prohibits construction and operation of water supply wells within the compliance boundary; and
c. Reserves the right of the Permittee or the State to enter the property within the compliance boundary
for purposes related to the permit.
The Director may terminate the easement when its purpose has been fulfilled or is no longer needed.
[15A NCAC 02L .0107(f)]
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17. The facilities permitted herein shall be constructed according to the following setbacks:
a. The setbacks for reclaimed utilization sites permitted under 15A NCAC 02H .0200 shall be as
follows (all distances in feet):
i. Surface waters not classified SA: 25
ii. Surface waters classified SA:
100
iii. Any well with exception to monitoring wells:
100
[15A NCAC 02T .0219(k)]
b. The setbacks for treatment and storage units permitted under 15A NCAC 02H .0200 shall be as
follows (all distances in feet):
i. Any private or public water supply source:
100
ii. Any property line:
50
[15A NCAC 02T .02190)]
c. The setbacks for high -rate infiltration sites permitted under 15A NCAC 02H .0200 shall be as
follows (all distances in feet):
i. Any habitable residence or place of public assembly under separate ownership:
400
ii. Any private or public water supply source:
200
iii. Surface waters:
200
iv. Groundwater lowering ditches:
200
v. Surface water diversions:
200
vi. Any well with exception of monitoring wells:
100
vii. Any property line:
100
viii. Subsurface groundwater lowering drainage systems:
200
ix. Public right of way:
50
[ 15A NCAC 02T .02190)]
1 S. The Contract and Agreement (attached) is incorporated herein by reference and shall be a condition of
this permit to ensure that the Permittee has access to the reclaimed water or effluent disposal facility
(i.e. golf course) at all times. [15A NCAC 02T .0115]
M. OPERATION AND MAINTENANCE REQUIREMENTS
1. The reclaimed water generation, utilization, and higb-rate infiltration facilities shall be properly
maintained and operated at all times. The facilities shall be effectively maintained and operated as a
reclaimed water or non -discharge system to prevent the discharge of any reclaimed water or partially
treated effluent resulting from the operation of this facility. [15A NCAC 02T .0108(b)(1)]
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2. The Permittee shall maintain an Operation and Maintenance Plan, which at a minimum shall include
the following:
a. Description of the system in sufficient detail to show what operations are necessary for the system
to function and by whom the functions will be conducted;
b. A map of all distribution lines and record drawings of all utilization systems under the Permittee's
control;
c. Description of anticipated maintenance activities;
d. Include provisions for safety measures including restriction of access to sites and equipment; and
c. Spill control provisions including response to upsets and bypasses including control, containment,
remediat.ion, and contact information for plant personnel, emergency responders and regulatory
agencies.
[ 15A NCAC 02T .0707, 02U .0801 ]
Upon the Water Pollution Control System Operators Certification Commission's (WPCSOCC)
classification of the subject non -discharge facilities, in accordance with 15A NCAC 08G .0200 the
Permittee shall designate and employ a certified operator in responsible charge (ORC) and one or more
certified operator(s) as back-up ORC(s). The ORC or their back-up shall visit the facilities in
accordance with 15A NCAC 08G .0200, and shall comply with all other conditions specified in the
previously cited rules. [15A NCAC 02T .0117, 02U .0117]
4. An operator certified by the Water Pollution Control System Operators Certification Commission
(WPCSOCC) of a grade equivalent or greater than the facility classification shall be on call 24 hours
per day. [15A NCAC 02U .0401(e), 02U .0402(i)]
5. A suitable year round vegetative cover shall be maintained on irrigation sites at all times, such that crop
health is optimized, allows for even distribution of reclaimed water, and allows inspection of the
irrigation system. [15A NCAC 02T .0108(b)(1)]
6. Adequate measures shall be taken to prevent reclaimed water ponding in or runoff from the irrigation
sites. [15ANCAC 02T .0108(b)(1)]
7. Irrigation shall not be performed during inclement weather or when the ground is in a condition that
will cause ponding or runoff. [15A NCAC 02T .0108(b)(1)]
8. All reclaimed water irrigation equipment shall be tested and calibrated at least once per permit cycle.
Calibration records shall be maintained at the facility for a period of no less than five years, and shall
be made available to the Division upon request. [15A NCAC 02T .0108(h)(1)]
9. The turbidimeter shall be tested and calibrated at a minimum of once per year. Calibration records
shall be maintained at the facility for a period of no less than five years, and shall be made available to
the Division upon request. [15A NCAC 02T .0108(b)(1)]
10. Only effluent from the Eagle Creek WWTP shall be infiltrated or utilized on the sites listed in
Attachment B. [G.S. 143-215.11
11. An automatically activated standby power source capable of powering all essential treatment units shall
be on site and operational at all tinges. If a generator is employed as an alternate power supply, it shall
be tested weekly by interrupting the primary power source. [ 15A NCAC 02U .0402(h)]
12. 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)]
13. Public access to the reclaimed water generation and high -rate infiltration facilities shall be prohibited.
[15A NCAC 02T .0705(p), 02U .0402(f)]
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14. Public access to the reclaimed water utilization sites shall be controlled during active site use. Such
controls at the infiltration pond and the reclaimed water pond may include the posting of signs every
100 feet showing the activities being conducted. A sign shall also be posted in plain sight in the club
house describing these activities. Also, signage shall be provided around the perimeter of the golf
course to notify the residents that reclaimed water is used to irrigate the golf course. An alternate to
the signage is that the residents be notified by letter on an annual basis notifying them of the activities
performed on the golf course. [15A NCAC 02U .0501]
15. Diversion or bypassing of untreated or partially treated wastewater from the treatment facilities is
prohibited. [ 15A NCAC 02T .0108(b)(1), 02T .0705(i)]
16. Freeboard in the wet weather storage and high -rate infiltration ponds shall not be less than two feet at
anytime. [15A NCAC 02T .0108(b)(1), 02T .0705(c)]
17. Gauges to monitor water levels in the wet weather storage and high -rate infiltration ponds 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 darn. [15A NCAC 02T .0108(b)(1)]
18. 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. [I 5A NCAC 02T
.0108(b)(1)]
19. All effluent shall be routed to the high -rate infiltration, 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 high -rate infiltration pond shall be treated in the high -rate infiltration
pond prior to discharge to the storage pond. [ 15A NCAC 02U .0402(c)]
20. The Permittee shall develop and implement an education program to inform users (including
employees) about the proper use of reclaimed water. Educational material shall be provided to all
residents and/or other facilities provided with reclaimed water, and these materials shall be maintained
consistent with the reclaimed water uses. All educational materials shall be made available to the
Division upon request. [ 15A NCAC 02U .0501(a)(4)]
21. The Permittee shall provide notification to the public and/or employees about the use of reclaimed
water, and that reclaimed water is not intended for drinking. Such notification shall be provided to
employees in a language they can understand. [15A NCAC 02U .0501]
22. 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 and 02U .0802. [15A NCAC 02T .0708, 02T .1100, 02U .0802]
23. The high -rate infiltration basins shall be periodically cleaned 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)]
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24. Reclaimed water applied to the utilization areas and effluent infiltrated in the high -rate basin shall be
restricted to sources as follows:
a. Until a submittal of a new agreement between the Permittee and Mill Run Golf Course as specified
in Condition 1.2.; no type of wastewater other than that originating from the current Eagle Creels
Development shall be applied to the reclaimed water utilization areas or infiltrated in the high -rate
basin.
b. Following receipt of a new agreement between the Permittee and Mill Run Golf Course, that is
accepted by the Division as demonstrating the source and extent to which wastewater may be
applied to the golf course, wastewater originating from the Eagle Creek Development and the South
Ridge development, as specified and limited in the agreement.
All applicable permits must be obtained prior to construction of any new sewer line extension,
collection system, and/or pump stations that are designed to provide for wastewater flow from new
contributing sources.
[G.S. 143-215.1 ]
25. Vegetative growth must be kept out of the infiltration pond at all times. All vegetation must be removed
manually so that minimal disturbance will occur to the disposal area. [15A NCAC 02T .0108(b)(1)]
26. The application of chemicals to the infiltration pond is expressly prohibited. [15A NCAC 02T
.0108(b)(1)]
27. The Permittee shall be responsible for the operation and maintenance of the 6,000 GPM stormwater
pump to allow the movement of groundwater off site from the golf course. Until such time that the
County has established a drainage district, the Permittee shall be responsible for maintaining the canals
for positive drainage. [15A NCAC 02T .0108(b)(1)]
IV. MONITORING AND REPORTING RE UIRMENTS
Any Division required monitoring (including groundwater, plant tissue, soil and surface water analyses)
necessary to ensure groundwater and surface water protection shall be established, and an acceptable
sampling reporting schedule shall be followed. [ 15A NCAC 02T .0108(c)]
2. A Division certified laboratory shall conduct all laboratory analyses for the required effluent,
groundwater or surface water parameters. [15A NCAC 02H .0800]
3. Flow through the reclaimed water generating facility shall be continuously monitored, and daily flow
values shall be reported on Form NDMR.
The Permittee shall install and maintain an appropriate flow measurement device to ensure the accuracy
and reliability of flow measurement consistent with accepted engineering and scientific practices.
Selected flow measurement devices shall be capable of measuring flows with a maximum deviation of
less than ten percent from true flow; accurately calibrated at a minimum of once per year; and
maintained to ensure the accuracy of measurements is consistent with the selected device's accepted
capability. The Permittee shall maintain records of flow measurement device calibration on file for a
period of at least five years. At a minimum, documentation shall include:
a. Date of flow measurement device calibration,
b. Name of person performing calibration, and
c. Percent from true flow.
[15A NCAC 02T .0105(k)]
4. The Permittee shall monitor the reclaimed water or effluent from the generating facility at the
frequencies and locations for the parameters specified in Attachment A. [15A NCAC 02T .0108(c)]
WQ0014306 Version 4.0 Shell Version 150213 Page 8 of 13

The Pennittee shall maintain adequate records tracking the amount of reclaimed water utilized.
Records shall be maintained for a minimum of five years. At a minimum, these records shall include
the following information for each utilization site listed in Attachment B:
a. Date of reclaimed water utilization;
b. Volume of reclaimed water irrigated;
c. Site irrigated;
d. Length of time site is irrigated;
e. Continuous weekly, monthly, and year-to-date hydraulic (inches/acre) loadings;
f. Weather conditions; and
g. Maintenance of cover crops.
[ 15A NCAC 02T .0108(c)]
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; and
e. Weather conditions.
[15A NCAC 02T .0108(c)]
7. Freeboard (i.e., waste level to the lowest embankment elevation) in the wet weather storage and high -
rate infiltration ponds 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, three copies of all operation and disposal records (as specified in Conditions IV.5. and IV.7.)
on Form NDAR-1, and three copies of all operation and disposal records (AS specified in Conditions
IV.6. and IV.7. 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(l)]
WQ0014306 Version 4.0 Shell Version 150213 Page 9 of 13

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.
[15A NCAC 02T .0108(c)]
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. Visual observations of treatment plant and plant site;
b. Date of calibration of flow measurement device(s);
c. Date of calibration of turbidimeter;
d. Date and results of power interruption testing on alternate power supply;
e. Record of preventative maintenance (e.g., changing/adjusting of equipment, pump and valve
maintenance, cross connection control, testing, inspections and cleanings, etc.; and
£ Record of all unpermitted releases of reclaimed water or effluent to surface water or land surface
including date of occurrence, estimated volume of release, cause, and corrective action taken.
[ 15A NCAC 02T .0108(b)(1)]
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)]
WQ0014306 Version 4.0 Shell Version 1502I3 Page 10 of 13

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 failure resulting in a discharge of reclaimed water directly to surface waters or any unpermitted
release of reclaimed water to land surface greater than or equal to 5,000 gallons. Unpermitted
releases Iess than 5,000 gallons to land surface shall be documented by the Permittee in accordance
with Condition IV.8.£ but do not require Regional Office notification.
d. Any time self -monitoring indicates the facilities permitted herein have gone out of compliance with
the limitations contained in this permit.
e. Ponding in or runoff from the reclaimed water utilization sites.
f. Effluent breakout from the infiltration basin.
Any emergency requiring immediate reporting (e.g., discharges to surface waters, imminent failure of
a storage structure, etc.) outside normal business hours shall be reported to the Division's Emergency
Response personnel at telephone number [phone], [phone], or [phone]. Persons
reporting such occurrences by telephone shall also file a written report in letter form within five days
following first knowledge of the occurrence. This report shall outline the actions taken or proposed to
betaken to ensure the problem does not recur. [15A NCAC 02T .0108(b)(1)]
V. INSPECTIONS
1. The Permittee shall provide adequate inspection and maintenance to ensure proper operation of the
reclaimed water generation, utilization, and high -rate infiltration facilities. [15A NCAC 02T .0108(b)]
2. The Permittee or their designee shall inspect the reclaimed water generation, utilization, and high -rate
infiltration facilities to prevent malfunction, facility deterioration and operator errors resulting in
discharges, which may cause the release of wastes to the environment, a threat to human health or a
public nuisance. The Permittee shall maintain an inspection log that includes, at a minimum, the date
and time of inspection, observations made, and any maintenance, repairs, or corrective actions taken.
The Perm ittec shall maintain this inspection log for a period of five years from the date of the inspection,
and this log shall be made available to the Division upon request. [15A NCAC 02T .0108(b)]
3. Any duly authorized Division representative may, upon presentation of credentials, enter and inspect
any property, premises or place on or related to the reclaimed water generation, utilization, and high -
rate 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.
143-215.1]
VI. GENERAL CONDITIONS
1. Failure to comply with the conditions and limitations contained herein may subject the Permittee to an
enforcement action by the Division in accordance with North Carolina General Statutes 143-215.6A to
143-215.6C. [G.S. 143-215.6A to 143-215.6C]
WQ0014306 Version 4.0 Shell Version 150213 Page 11 of 13

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. 142-215.1 ]
4. The issuance of this permit does not exempt the Permittee from complying with any and all statutes,
rules, regulations, or ordinances, which may be imposed by other jurisdictional government agencies
(e.g., local, state, and federal). Of particular concern to the Division are applicable river buffer rules in
15A NCAC 02B .0200; erosion and sedimentation control requirements in 15A NCAC Chapter 4 and
under the Division's General Permit NCG010000; any requirements pertaining to wetlands under 15A
NCAC 02B .0200 and 02H .0500; National Pollutant Discharge Elimination System (NPDES)
requirements under 15A NCAC 02H A100, 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 written
permit modification request shall be submitted to the Division. This request shall be made on official
Division forms, and shall include appropriate property ownership documentation and other supporting
documentation as necessary. The Permittee of record shall remain fully responsible for maintaining
and operating the facilities permitted herein until a permit is issued to the new owner. [15A NCAC
02T .0104]
6. The Permittee shall retain a set of Division approved plans and specifications for the life of the facilities
permitted herein. [ 15A NCAC 02T .0108(b)(1)]
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
.01056)]
8. This permit is subject to revocation or unilateral modification upon 60 days notice from the Division
Director, in whole or part for the requirements listed in 15A NCAC 02T .0110. [ 15A NCAC 02T .0110]
9. Unless the Division Director grants a variance, expansion of the permitted facilities contained herein
shall not be granted if the Permittee exemplifies any of the criteria in 15A NCAC 02T .0120(b). [ 15A
NCAC 02T .0120]
10. The Permittee shall pay the annual fee within 30 days after being billed by the Division. Failure to pay
the annual fee accordingly shall be cause for the Division to revoke this permit. [15A NCAC 02T
.0105(e)(3)]
Permit issued this the 8' day of October 2015
NORTH CAROLINA ENVIRONMENTAL MANAGEMENT COMMISSION
4- S. Jay Zimmerman, P.G., Director QJ
Division of Water Resources
By Authority of the Environmental Management Commission
Permit Number WQ0014306
WQ0014306 Version 4.0 Shell Version 150213 Page 12 of 13

Permit No. WQ0014306
Sandler Utilities at Mill Run, L.L.C.
Eagle Creek
❑ Partial ❑ Final
Reclaimed Water Generation, Non -Conjunctive Reclaimed Water
Utilization and High -Rate Infiltration System
October 8, 2015
Currituck County
ENGINEERING CERTIFICATION
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:
I
Professional Engineer's Name E
Engineering Firm
Mailing Address �
3
i
E
3
City ! State Zip
f _
Telephone E-mail NC PE Seal, Signature & Date
THE COMPLETED ENGINEERING CERTIFICATION, INCLUDING ALL SUPPORTING
INFORMATION AND MATERIALS, SHALL BE SENT TO THE FOLLOWING ADDRESS:
NORTH CAROLINA DEPARTMENT OF ENVIRONMENTAL QUALITY
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 STREET
RALEIGH, NORTH CAROLINA 27699-1617 RALEIGH, NORTH CAROLINA 27604
WQ0014306 Version 4.0 ShelI Version 150213 Page 13 of 13

THIS PAGE BLANK

ATTACHMENT A - LIMITATIONS AND MONITORING REQUIREMENTS
PPI001- Reclaimed Water Generation System Effluent'
Permit Number: WQ0014306 Version: 4.0
EFFLUENT CHARACTERISTICS
EFFLUENT LIMITS
MONITORING REQUIREMENTS
PCS
Code
Parameter Description
Units of
Measure
Monthly
Average
Monthly
Geometric Mean
Daily Minimum
Daily Maximum
Measurement
Frequency
Sample
Type
00310
BOD, 5-Day (20 °C)
mg/L
10
15
2 x Month
Composite
00940
Chloride (as Cl)
mg/L
3 x Year z
Composite
00680
Carbon, Total Organic (TOC)
mg/L
3 x Year 2
Composite
31616
Coliform, Fecal MF, M-FC Broth, 44.5 °C
#/100 ML.
14
25
2 x Month
Grab
50050
Flow, in Conduit or thru Treatment Plant
GPD
175,000
Continuous
Recorder
00610
Nitrogen, Ammonia Total (as N)
mg/L
4
6
2 x Month
Composite
00625
Nitrogen, Kjeldahl, Total (as N)
mg/L
2 x Month
Composite
00620
Nitrogen, Nitrate Total (as N)
mg/L
2 x Month
Composite
00600
Nitrogen, Total (as N)
mg/L
2 x Month
Composite
00400
pH
su
6
9
5 x Weep
Grab
00665
Phosphorus, Total (as P)
mg/L
2 x Month
Composite
70300
Solids, Total Dissolved — ISO °C
mg/L
3 x Year'
Composite
00530
Solids, 'Total Suspended
mg/L
5
10
2 x Month
Composite
00076
Turbidity, HCH Turbidimeter
NTIJ
10
Continuous
Recorder
I. Reported data for PPI 001 and PPI 002 may be obtained from the same sampling location prior to flow diversion to the reclaimed water system or the infiltration basin.
2. 3 x Year sampling shall be conducted in March, July, and November.
WQ0014306 Version 4.0 Attachment A Page 1 of

ATTACHMENT A - LIMITATIONS AND MONITORING REQUIREMENTS
PPI 002 — Effluent to the High -Rate Infiltration Basin 1
Permit Number: WQ0014306 Version: 4.0
EFFLUENT CHARACTERISTICS
EFFLUENT LIMITS
MONITORING REQUIREMENTS
PCS
Code
Parameter Description
Units of
Measure
Monthly
Average
Monthly
Geometric Mean
Daily Minimum
Daily Maximum
Measurement
Frequency
Sample
Type
00310
BOD, 5-Day (20 °C)
mg/L
15
Monthly
Composite
00940
Chloride (as Cl)
mg/L
3 x Year 2
Composite
00680
Carbon, Total Organic (TOC)
mg/L.
3 x Year z
Composite
31616
Coliform, Fecal MF, M-FC Broth, 44.5 °C
#/100 ML.
200
Monthly
Grab
50050
Flow, in Conduit or thru Treatment Plant
GPD
90,000
Continuous
Recorder
00610
Nitrogen, Ammonia Total (as N)
mg/L
4
Monthly
Composite
00625
Nitrogen, Kjeldahl, Total (as N)
mg/L
Monthly
Composite
00620
Nitrogen, Nitrate Total (as N)
mg/L
Monthly
Composite
00600
Nitrogen, Total (as N)
mg/L
Monthly
Composite
00400
pH
su
6
9
5 x Week
Grab
00665
Phosphorus, Total (as P)
mg/L
Monthly
Composite
70300
Solids, Total Dissolved —180 °C
mg/L
3 x Year 2
Composite
00530
Solids, Total Suspended
mg/L
30
Monthly
Composite
I . Reported data for PPI 001 and PPI 002 may be obtained from the same sampling location prior to flow diversion to the reclaimed water system or the infiltration basin.
2. 3 x Year sampling shall be conducted in March, July, and November.
WQ0014306 Version 4.0 Attachment A Page 2 of 2

ATTACHMENT B - APPROVED LAND APPLICATION SITES AND LIMITATIONS
Sandler Utilities at Mill Run, L.L.C. — Eagle Creek
Permit Number: WQ0014306 Version: 4.0
IRRIGATION AREA INFORMATION
APPLICATION LIMITATIONS
I
Field
Owner
County
Latitude
Longitude
Net
Acreage
Dominant
Soil Series
Parameter
Hourly
Rate
Yearly
Max
Units
Driving
Range.
Sandler Utilities at Mill Run, L.L.0
Currituck
36.4925330
-76,166456'
12.00
Cape Fear Loam
01284 - Non -Discharge Application Rate
0.1
31.2
inches
Fairways
Sandler Utilities at Mill Run, L.L.0
Currituck
36..493915'
-76.169478'
65.00
Cape Fear Loam
01284 - Non -Discharge Application Rate
0.1
31.2
inches
Greens
Sandler Utilities at Mill Run, L.L.0
Currituck
36.4919360
-76.166941 °
21.00
Cape Fear Loam
01284 - Non -Discharge Application Rate
0.1
31.2
inches
Tees
Sandler Utilities at Mill Run, L.L.0
Currituck
36.4939590
-76.1675500
14.25
Cape Fear Loam
01284 - Non -Discharge Application Rate
0.1
31.2
inches
Totals
112.25
INFILTRATION AREA INFORMATION
APPLICATION LIMITATIONS
Basin
Owner
County
Latitude
Longitude
Net
Dominant
Parameter
Rate
Units
Acreage
Soil Series
1
Sandler Utilities at Mill Run, L.L.0
Currituck
36.4889060
-76.1689370
4.00
01284 - Non-Discbarge Application Rate
90,000
GPD
WQ0014306 Version 4.0 Attachment B Page l of 1

THIS PAGE BLANK

ATTACHMENT C — GROUNDWATER MONITORING AND LIMITATIONS
Monitoring wells: MW-1 and MW-2
Permit Number: WQ0014306 Version: 4.0
GROUNDWATER CHARACTERISTICS
GROUNDWATER STANDARDS
MONITORING REQUIREMENTS
PCS Code
Parameter Description
Daily Maximum
Frequency Measurement
Sample Type
Footnotes
00680
Carbon, Tot Organic (TOC)
mg/L
3 x Year
Grab
1,4
00940
Chloride (as Cl)
250
mg/L
3 x Year
Grab
I
31616
Coliform, Fecal MF, M-FC Broth, 44.5 °C
#/I00 mL
3 x Year
Grab
1
00610
Nitrogen, Ammonia Total (as N)
L5
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
82546
Water Level, Distance from measuring point
feet
3 x Year
Calculated
1. 3 x Year monitoring shall be conducted in March, July & 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. 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.
5. Monitoring wells shall be reported consistent with the nomenclature and location information provided in Figure 1 and this attachment.
WQ0014306 Version 4.0 Attachment C Page 1 of 1

C
M
CONTRACT AND AGREEMENT
THIS AGREEMENT, made and entered into this the day of
October, 1935, between Tate Terrace Realty, Inc., a Virginia
corporation (hereinafter referred to as "Tate Terrace") and
Jernigan Enterprises, a North Carolina general partnership
(hereinafter referred to as "Jernigan").
W I T N E S S E T H
WHEREAS, TATE TERRACE is the owner of certain property
located in the vicinity of Moyoek in Currituck County, North
Carolina, (Tax Map 15, Parcel No. 84) , consisting of an area of
521.38 acres. Tate Terrace has received approval from the
appropriate authorities to develop the property as a residential
subdivision, together with an eighteen -hole golf course to be
it
constructed on the property.
WHEREAS, J'ERNIGAN is a company that is in the business of
constructing, managing and operating golf courses and intends to
pursue the development of this golf course in the name of Mill Run
Golf Club, Inc., a proposed North Carolina corporation (hereinafter
referred to as "Mill Run").
WHEREAS, THE PARTIES have entered this agreement to set forth
the terms whereby Tate Terrace will convey certain properties to
Mill Run for the construction, development and operation of an
eighteen -hole golf course facility within the residential
subdivision of Tate Terrace.
NOW, THEREFORE,
in consideration of
the
mutual covenants
and
conditions set forth
herein, which have
been
acknowledged by
all
1

0
parties to be adequate consideration, the parties hereto, intending
to be Legally bound, hereby agree as follows:
1. Conveyance ofProperty- Tate Terrace wild, convey to Mill
Run certain real property consisting of a minimum of one hundred
fifty --five (155 ) acres. Mill Run will accept the conveyance of the
property, which is to be made in fee sampler and will undertake to
construct a regulation eighteen -hole semi. --private golf course. The
Property consists of the area shown on a conceptual drawing
entitled "Conceptual Development Plan 'Mill Run' Golf & Country
Club, Moyock Township, Currituck County, North Carolina," prepared
w
by Albemarle Engineering, Inc., attached hereto. The Property will
include those areas shown as fairways, tees, greens, ponds and open
areas in connection with the golf course, club house area,
maintenance building and other golf course -related areas. The
parties agree that a metes and bounds description will be generated
from a physical survey of the golf course properties depicted in
the attached plan and boundary line adjustments may be necessary
and will, be made prior to conveyance, but no later than 180 days
from the execution of this contract.
It is understood and agreed that conveyance of the golf course
property shall in no way be contingent upon the number of lots
approved for development by Currituck County.
2. SCHEDULE
2.1 Upon execution of this contract, Jernigan shall
immediately proceed with the preparation of an offering circular
and dissemination of a securities offering for the purpose of
2

raising 'sufficient capital for full funding of the development of
a regulation eighteen hole semi -private golf course.
2.2 Tate Terrace shall provide to Jernigan a maximum one
hundred eighty (184) day funding period in which to receive
development capital through a securities offering.
2.3 Tate Terrace shall convey to Mill Run the property
described above by fee simple warranty deed within 30 days of
receipt of certification of successful funding from attorney John
A. Mauney. Notice shall be deemed duly given if mailed by
certified mail, postage prepaid, addressed to The Alan Resh Group,
448 Viking Drive, Virginia Beach, VA 23452. upon notification of
the inability of Jernigan to raise sufficient capital, or the
expiration of one hundred eighty (180) days, this contract shall
become null and void.
3. Additional -Conditions
3.1 That Tate Terrace grant unto Mill Run non-exclusive,
perpetual, appurtenant easements over all roads of the subdivision.
3.2 That Mill Run grant unto Tate Terrace a right of way
sufficient for dedication to public use upon such roadways as may
from time to time be established crossing golf course properties
for the use and benefit of the development.
3.3 Tate Terrace shall construct a paved roadway for
ingress and egress from N. C. 1215 to the clubhouse site prior to
the opening date for the golf course, but not sooner than September
30, 1997. Jernigan agrees to construct clubhouse facilities of no
less than 3,000 square feet.
3

3.4 That. Tate Terrace has right and easement to extract
material from those ponds located on the properties of the golf
course which abut common boundary lines.
3.5 Each party agrees to grant to the other such
easements to construct, maintain, deepen and keep in repair ditches
or drains across Lands of the parties of such character and of
sufficient size as to make proper and sufficient outlets for
drainage systems.
3.6 That Tate Terrace prepare a Declaration of
Covenants, Conditions and Restrictions to provide for the
preservation of the values of its residential community and Mill
Run which include but are not limited to standard provisions for
indemnification of liability and necessary easements which permit
retrieval of errant golf balls and entry upon properties for this
purpose. Said covenants shall be prepared and approved by both
parties within thirty (30) days after the execution of this
contract.
'% 3.7 It is understood by both parties that it is
essential for the development of the residential community that
Mill Run accept and dispose of waste water effluent generated from
that waste water treatment facility located with the residential
community; and Mill Run agrees to accept that waste water effluent
generated only from this residential community for disposal through
a golf course irrigation system in consideration for its receipt of
a reasonable share of charges and fees received by that waste water
4

treatment facility, to be determined prior to settlement in
accordance with ,industry standards.
To provide assurance of Mill Run's commitment to construct,
Maintain and operate an irrigation system for permanent and
continuing disposal of effluent, Mill Run agrees to the following
conditions:
a) That a sufficient portion of proceeds received for
development by Mill Run be retained in trust to secure the
construction for irrigation facilities sufficient for di.sposral
of waste water effluent.
b) Tate Terrace shall be granted rights of ingress and egress
across the properties of Mill Run as necessary to access
irrigation lines and pumping stations for maintenance, repair
and operation of the irrigation system for disposal of waste
water effluent in the event of the failure of Mill Run or its
successors and assigns to continue golf course operations,
3.8 Tate Terrace agrees to be responsible for the cost
of constsucti.on, management and maintenance of the waste water
treatment facility, including, but not limited to, the waste water
treatment plant, five-Wday holding pond, waste wattx irrigation pond
and those additional casts incurred for an effluent irrigation
system over and above the normal and reasonable expenses incurred
for a golf course irrigation system. Tate Terrace also agrees to
indemnify Mill Run from any and all liabilities which result from
the construction, Management, maintenance and operation of the
waste water treatment facility. In turn, Jernigan and its assigns
5

agree to indemnify Tate Terrace from any and all liabilities
resulting from Jernigan's failure to maintain that portion of the
effluent irrigation system under its control.
3.9 That Mill Run be granted easements for access to
that waste water irrigation pond between holes 9 and 18 for removal
of water and material used in golf course construction and daily
operations.
3.10 Tate Terrace shall, provide to Mill Run connection
to those water and sewer systems within the development upon their
completion, free from charge save and except those customary
monthly usage charges for water and sewer services to cover the
outflow from the clubhouse (not to exceed ten (10) toilets).
4. rgzmcement.of Construction - Jernigan shall be entitled
to commence construction of the golf course immediately upon
delivery by Tate Terrace of a deed conveying title to the Property.
S . TI e� of QRRIe&ion -- Jernigan will complete construction
within eighteen months of the date of delivery of a general
warranty deed for the subject property.
6. Egnding for Construction - Jernigan will be responsible to
obtain all funds necessary to construct the golf course in
accordance with the specifications and budget contained within a
certain Offering Circular to be prepared by Jernigan which may
include a loan, or loans for construction funding from commercial.
lenders. Tate Terrace has no involvement in the securities
offering and Jernigan Enterprises shall hold Tate Terrace harmless.
Jernigan shall notify Tate Terrace of its success in obtaining
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funding through a stock issuance and security offering and, through
its attorney, be bound to commit said funds for construction of the
golf course according to the specifications described in the
security offering.
7. Security - All funds received through a securities
offering or from commercial funding shall be placed on deposit in
trust with attorney John A. Mauney. It is agreed that no funds
will be disbursed for purposes other than construction of the golf
course. Tate Terrace acknowledges that Jernigan intends to fund
the development of property for a golf course by and through the
sale of securities in common stock of its North Carolina corporate
affiliate. Furthermore, it is understood that State and Federal
regulations require full disclosure describing the specific use of
funds for construction and development of a golf* course facility
with safeguards for construction draws based on percentage of
project completion. The parties recognize that all proceeds for
construction shall be placed on deposit with John A. Mauney,
Tx;ustee, and that disbursement guidelines will be strictly
enforced.
In order to further secure Tate Terrace as to the completion
of golf course development, it is agreed that Jernigan shall
executes a performance deed of trust for the benefit of Tate Terrace
which shall evidence a: lien subordinate to anticipated construction
and development liens. Said performance deed of trust shall be
deemed satisfied on that day when the golf course facilities are
open to the general. public. Tate Terrace shall be obligated to
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cause the cancellation of its security interest upon verification
of course opening.
8. gggn Space Requirements -- The parties acknowledge that the
golf course and the residential subdivision have been approved by
Currituck County as a single development. The golf course
qualifies as "open space," which allows for the lot layout and
density as approved by Currituck County.. The parties agree to the
acceptance and realignment of boundary lines to accommodate the
needs of both the residential subdivision and golf course for so
long as the golf course property consists of a minimum of one
hundred fifty-five (155 ) acres.
9. RVJ.IAn2V_2n_C99gSratin EffoXt fgrev o - it is
understood and agreed by both parties that each is responsible for
their own development project, yet both parties agree that it is
essential that a reasonable effort be made to coordinate the
development needs for each project.
10. Rellgg from Liabl,1,3 tv - The parties shall be relieved of
those responsibilities for damages due to causes beyond the control
of and without fault or .negligence of the parties (acts of God).
11. Assignment - This agreement shall be assignable by
consent of the parties and, in such event, the assignee of either
party shall be bound by the terms hereof.
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IN WITNESS WHEREOF, the parties have entered this agreement
the day and year first above written.
TATE TER. U*E REALTY, INC.
By:
Attest: l
JE
By:
RNIGAN ENTE RISES
SEAL )
Ge er Par ne
jrl
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