WQ0022052_Final Permit_20030721

F WA7F
�O RQ Michaei F. Easley, Governor
a William G. Ross Jr., Secretary
North Carolina Department of Environment and Natural Resources
-i
p -C Alan W. Klimek, P.E., Director
Division of Water Quality
July 21, 2003
W. HADDON ALLEN, III— PRESIDENT/ TREASURER
HENDERSON FARMS, LLC
2413 MIMOSA PLACE
WILMINGTON, NORTH CAROLINA 28403
Subject: Permit No. WQ0022052
Henderson Farms, LLC
Wastewater Treatment & Reclaimed
Water Utilization System
Pender County
Dear Mr. Allen:
In accordance with your permit application received November 13, 2002, and subsequent additional
information received April 10, 2003 and May 21, 2003, we are forwarding herewith Permit Number WQ0022052,
dated July 21, 2003, to Henderson Farms, LLC for the construction and operation of the subject wastewater
treatment and reclaimed water utilization system.
This permit shall be effective from the date of issuance until June 30, 2008, 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.
The Groundwater Section has raised some concerns regarding nutrient loading and possibility of
contravening 2L Groundwater Standards in the future, therefore, please note Condition I(3).
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 roust 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, 6714 Mail Service Center, Raleigh, NC 27699-
6714. Unless such demands are made this permit shall be final and binding.
One set of approved plans and specifications is being forwarded to you. If you need additional information
concerning this matter, please contact Nathaniel Thornburg at [phone] xtension 533.
Sincere ,
Alan W. Klimek, P.E.
cc: Pender County Health Department
Wilmington Regional Office, Water Quality Section
Wilmington Regional Office, Groundwater Section
Groundwater Section, Central Office
J. Phillip Norris, P.E. — Andrew & Kuske Consulting Engineers, Inc.
Technical Assistance and Certification Unit
Water Quality Central Files
N11PTT Fi1ac— ��
Non -Discharge Permitting Unit Internet http://h2o.enr.nc.state.us/ndpu
1617 Mail Service Center, Raleigh, NC 27699-1617 Telephone [phone] Fax [phone]
DENR Customer Service Center Telephone [phone]
An Equal Opportunity Action Employer 50% recycled/10% post -consumer paper

NORTH CAROLINA
ENVIRONMENTAL MANAGEMENT COMMISSION
DEPARTMENT OF ENVIRONMENT AND NATURAL RESOURCES
RALEIGH
WASTEWATER TREATMENT AND RECLAIMED WATER UTILIZATION PERNHT
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
Henderson Farms, LLC
Pender County
FOR THE
construction and operation of a 23,640 gallons per day (GPD) wastewater treatment and reclaimed water
utilization system consisting of influent lift station with dual pumps and high water alarms, a manually cleaned
bar screen, a 12,000 gallon flow equalization basin with dual 50 gallon per minute (GPM) pumps, a flow splitter
box, dual 20,275 gallon coarse bubble diffused aeration basins, two (2) 2,140 gallon clarifiers, a 6,075 gallon
aerated sludge holding tank, three (3) 126 cubic foot per minute (CFM) blowers serving the flow equalization,
aeration and sludge holding basins, dual bed tertiary filtration units each 14 square feet (ft2) with a loading rate of
0.59 GPM/ft2, a 56 CFM tertiary filter blower, a 4,200 gallon clearwell with two (2) 210 GPM backwash pumps, a
4,500 gallon mudwell with two (2) 60 GPM return pumps, tablet chlorination, a 834 gallon chlorine contact
chamber, a flow meter, a turbidimeter, a 3,600 gallon effluent dosing tank with dual 180 GPM pumps and high
water alarms, a 125,000 gallon lined 5-day upset pond, a 450,000 gallon clay lined (1 x 10-6 cm/sec) effluent
storage pond with approximately 19 days of storage, approximately 3.8 acres of fenced spray irrigation area
consisting of 15 full circle spray heads, 24 half circle spray heads and 1 quarter circle spray head to serve the
Henderson Farms Subdivision with no discharge of wastes to the surface waters, pursuant to the application
received November 13, 2002 and subsequent additional information received by the Division, and in conformity
with the project plan, specifications, and other supporting data subsequently filed and approved by the
Department of Environment and Natural Resources and considered a part of this permit.
This permit shall be effective from the date of issuance until June 30, 2008, and shall be subject to the
following specified conditions and limitations:
I. PERFORMANCE STANDARDS
1. Upon completion of construction and prior to operation of this permitted facility, a certification must
be received from a professional engineer certifying that the permitted facility has been installed in
accordance with this permit, the approved plans and specifications, and other supporting materials. N
this_project is to be completed in phases and partially certified, you shall retain the responsibility to
track further construction approved under the same permit, and shall provide a final certificate of
completion once the entire project has .been completed. Mail the Certification to the Non -Discharge
Permitting Unit, 1617 Mail Service Center, Raleigh, NC 27699-1617.

2. The Wilmington Regional Office, telephone number [phone], shall be notified at least forty-
eight (48) hours in advance of operation of the installed facilities so that an in -place inspection can be
made. Such notification to the regional 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.
3. The reclaimed water utilization facilities shall be effectively maintained and operated at all times so
that there is no discharge to the surface waters, nor any contamination of ground waters which will
render them unsatisfactory for normal use. In the event that the facilities fail to perform
satisfactorily, including the creation of nuisance conditions or failure of the irrigation area to
adequately assimilate the wastewater, the Permittee shall take immediate corrective actions including
those actions that may be required by the Division of Water Quality (Division), such as the
construction of additional or replacement wastewater treatment and disposal facilities.
4. 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.
5. 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 Division.
6. Diversion or bypassing of the untreated wastewater from the treatment facilities is prohibited.
7. The following buffers shall be maintained:
a. 100 feet between wetted areas and water supply wells,
b. 100 feet between wetted areas and waters classified as SA,
c. 25 feet between wetted areas and surface waters not classified as SA,
d. 100 feet between wastewater treatment units and wells,
e. 50 feet between reclaimed water storage/irrigation ponds and property lines, and
f. 50 feet between wastewater treatment units and property lines.
8. Public access to the irrigation sites shall be controlled during active site use. Such controls may
include the posting of signs showing the activities being conducted at each site.
11. OPERATION AND MAINTENANCE REQUIREMENTS
The facilities shall be properly maintained and operated at all times.
2. Upon classification of the wastewater treatment and irrigation facilities by the Water Pollution
Control System Operators Certification Commission (WPCSOCC), the Permittee shall designate and
employ a certified operator to be in responsible charge (ORC) and one or more certified operator(s) to
be back-up ORC(s) of the facilities in accordance with 15A NCAC 8G .0201. The ORC shall visit
the facilities in accordance with 15A NCAC 8G .0204 or as specified in this permit and shall comply
with all other conditions specified in these rules.
3. A suitable, year-round vegetative cover shall be maintained on the irrigation areas.
4. Irrigation shall not be performed during inclement weather or when the ground is in a condition that
will cause runoff.
5. Adequate measures shall be taken to prevent wastewater runoff from the irrigation field.
6. The facilities shall be effectively maintained and operated as a non -discharge system to prevent the
discharge of any wastewater resulting from the operation of this facility.
7. The application rate shall not exceed a cumulative loading of 88.07 inches over any twelve (12)
month period at an instantaneous application rate not to exceed 0.1 inches per hour.
2

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.
9. No type of wastewater other than that from Henderson. Farms Subdivision shall be irrigated onto the
irrigation area.
10. Freeboard in the lined storage pond shall not be less than 2 feet at any time.
11. A waste -level gauge, to monitor waste levels in the lined storage pond, shall be installed within 60
days of issuance of this permit. This gauge shall have readily visible permanent markings indicating
the maximum liquid level at the top of the temporary liquid storage volume, minimum Iiquid Ievel at
the bottom of the temporary liquid storage volume, and top of the dam elevations. Caution must be
taken not to damage the integrity of the liner when installing the gauge.
12. A protective vegetative cover shall be established and maintained on all earthen basin embankments
(outside toe of embankment to maximum pumping elevation), 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 basin dikes or embankments. Earthen basin embankment areas shall be kept mowed or
otherwise controlled and accessible.
13. All wastewater shall be routed to the five-day holding pond should the limit for fecal coliform (daily
maximum concentration of 25 per 100 ml) or turbidity (instantaneous maximum of 10 NTU) be
exceeded, until such time that the problems associated with the treatment capability of the wastewater
treatment plant have been corrected. The wastewater in the five-day holding pond shall be pumped
back to the treatment plant for retreatment or treated in the five-day pond prior to discharge to the
storage pond.
14. 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 REPORTING REQUIREMENTS
1. Any monitoring (including groundwater, surface water, soil or plant tissue analyses) deemed
necessary by the Division to insure surface and ground water protection will be established and an
acceptable sampling reporting schedule shall be followed.
2. Influent flow shall be continuously monitored and daily flow values shall be reported on Form
NDMR.
The Permittee shall install an appropriate flow measurement device consistent with approved
engineering and scientific practices to ensure the accuracy and reliability of influent flow
measurement. Flow measurement devices selected shall be capable of measuring flows with a
maximum deviation of less than 10 percent from true flow, accurately calibrated at a minimum of
once per year, and maintained to ensure that the accuracy of the measurements is consistent with the
accepted capability of that type of device. Records of flow measurement device calibration shall be
kept on file by the Permittee for a period of at least three years. At a minimum, data to be included in
this documentation shall be:
a. Date of flow measurement device calibration
b. Name of person performing calibration
c. Percent from true flow

3. As an indicator of proper operation and maintenance, the facility shall produce an effluent in
compliance with the following limitations:
Parameter
Monthly Average'
Daily (Instantaneous) Maximum
Flow
23,640 GPD
BOD5 (5-day, 20°C)
IO mg/l
15 mg/l
NH3 as N
4 mg/l
6 mg/l
TSS
5 mg/1
10 mg/1
Fecal Coliform
14 per 100 ml b
25 per 100 ml
Turbidity
I O NTU
The effluent pH shall not be less than 6.0 standard units nor greater than 9.0 standard units.
a
Monthly averages for all but fecal coliform shall be the arithmetic mean of all samples collected
during the reporting period.
b
Monthly average for fecal coliform shall be the geometric mean of all samples collected during the
reporting period.
c
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 a point prior to
irrigation for the following parameters:
Parameter
Sampling Point
Sampling Frequency
Type of Sample
Flow
Influent or Effluent
Continuous
Recording
Turbidity
Effluent
Continuous
Recording
BOD5 (5-day, 20°C)
Effluent
*2/Month
Composite
NH3 as N
Effluent
*2/Month
Composite
TSS
Effluent
2/Month
Composite
Fecal Coliform
Effluent
*2/Month
Grab
Settleable Matter
Effluent
Daily
Grab
Residual Chlorine
Effluent
Daily
Grab
NO3
Effluent
**Triannually
Grab
TDS
Effluent
**Triannually
Grab
TOC
Effluent
*#Triannually
Grab
Chloride
Effluent
*' Triannually
Grab
PH
Effluent
* *Triannually
Grab
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 Marc, July and November.
If Groundwater sampling indicates or predicts problems with the compliance with Groundwater
Standards, this permit will be modified to include additional and/or more restrictive liinitations.
4

4. Adequate records shall be maintained by the Permittee tracking the amount of wastewater disposed.
These records shall include, but are not necessarily limited to the following information:
a. date and time of irrigation,
b. volume of wastewater irrigated,
c. zone irrigated,
d. length of time zone is irrigated,
e. continuous weekly, monthly, and year-to-date hydraulic (inches/acre) loadings for each zone,
f. weather conditions, and
g. maintenance of cover crops.
Freeboard in the lined storage pond shall be recorded weekly.
6. Three (3) copies of all monitoring data [as specified in Conditions IH(2) and 111(3)] on Form NDMR-
I and three (3) copies of all operation and disposal records [as specified in Conditions III(4) and
111(5)] on Form NDAR-1 shall be submitted monthly on or before the last day of the following
month. All information shall be submitted to the following address:
NC Division of Water Quality
Water Quality Section
Non -Discharge Compliance/Enforcement Unit
1617 Mail Service Center
Raleigh, North Carolina 27699-1617
7. A record shall be maintained of all residuals removed from this facility. This record shall include the
name of the hauler, permit authorizing the disposal or a letter from a municipality agreeing to accept
the residuals, date the residuals were hauled, and volume of residuals removed.
8. A maintenance log shall be maintained at this facility including but not limited to the following items:
a. Daily sampling results of 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.
9. Noncompliance Notification:
The Permittee shall report by telephone to the Wilmington Regional Office, telephone number (910)
395-3900, 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 sludge digester; 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 render 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 directly to
receiving waters without treatment of all or any portion of the influent to such station or facility.
d. Any time that self -monitoring information indicates that the facility has gone out of compliance
with its permit limitations.

Occurrences outside normal business hours may also 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 (5) 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
Well Construction I Abandonment Criteria:
a. Prior to beginning waste disposal operations, three (3) monitor wells, one upgradient and two
downgradient, shall be installed to monitor groundwater quality. The wells 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. The general location and name for each well is marked on the
attached layout sheet. Each monitoring well shall be located at the Review boundary, constructers
in accordance with this permit, and approved by the Wilmington Regional Office.
b. The wells must be constructed by either a North Carolina Certified Well Contractor, the property
owner or the property lessee according to General Statutes 87-98.4(b)(2). If the construction is
not performed by a certified well contractor, the property owner or lessee must physically
perform the actual well construction activities, and the wells must be constructed according to the
North Carolina Well Construction Standards (15A NCAC 2C .0108) and the local county rules.
c. The Wilmington Regional Office, telephone number [phone], 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.
d. Within thirty (30) days of completion of all well construction activities, a certification must be
received from a professional engineer or a licensed geologist certifying that the monitoring welts
are located according to this permit.
2. Sampling Criteria:
a. Monitor wells (MW-1, MW-2 and MW-3) shall be sampled initially after construction and prior
to waste disposal operations, and thereafter every March, July and November for the parameters
listed below. Prior to sampling the parameters, the measurement of water levels must be taken.
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
relative to a common datum.
Nitrate (NO3-N)
Total Phosphorus
Total Ammonia (NH3-N)
Chloride
Total Dissolved Solids
Fecal Coliform
PH
Water Level
b. Any Iaboratory selected to analyze parameters must be Division of Water Quality (DWQ)
certified for those parameters required.

Reporting / Documentation:
a. All reports and documentation (GW-1, GW-30 and GW-59) shall be mailed to the following
address:
Groundwater Section
Permits and Compliance Unit
1636 Mail Service Center
Raleigh, NC 27699-1636
Updated blank forms (GW-1, GW-30 and GW-59) may be downloaded from the Groundwater
Section's website at http://gw.ehnr.state.nc.us/ or requested from the address mentioned above.
b. For the initial sampling of the wells, the permittee shall submit a copy of the GW-1 Form (Well
Construction Record) with the Compliance Monitoring Form (GW-59) for each well to the
address listed above. Initial Compliance Monitoring Forms that do not include copies of the
GW-1 form may 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 143-215.6A.
c. The results of the sampling and analysis must be received on Form GW-59 by the Groundwater
Section (address listed above), on or before the last working day of the month following the
sampling month. The data of all groundwater sampling analyses required by the permit
conditions must be reported using the most recent GW-59 form along with attached copies of the
laboratory analyses.
d. Within sixty (60) days of completion of the monitoring wells, the permittee shall submit two
original copies of a scaled site map (scale no greater than 1-inch = 100 feet); however, special
provisions may be granted upon prior approval for large properties. The map(s) must include the
following information:
1) The location and identity of each monitoring well.
2) The location of major components of the waste disposal system.
3) The location of property boundaries within 500 feet of the disposal area(s).
4) The latitude and longitude of the established horizontal control monument.
5) The elevation of the top of the well casing (i.e., measuring point) relative to a common datum
6) The depth of water below the measuring point at the time the measuring point is established.
7) The location of the Review and Compliance boundaries.
S) The date the map is prepared and/or revised.
Control monuments 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. Maps and
any supporting documentation shall be sent to the Groundwater Section as addressed above.
The permittee is responsible for the geographic accuracy of any map submitted, however
produced.
4. Vertical Separation Requirements:
Waste application activities shall not occur when the vertical separation between depth of application
and the water table is at less than one (1) foot. Verification of the water table elevation can be
confirmed by water level readings obtained from the monitor welI(s) near the site or auger boring(s),
which must be done within 24 hours, prior to application of wastewater. Any open borings must be
properly filled with native soil, prior to application to decrease the chance of any waste contaminating
the groundwater.
7

5. Liner Requirements:
The 5-day detention basing and the irrigation storage pond shall have either a liner of natural material
at least one (1) foot in thickness and having a hydraulic conductivity of no greater than 1 x 10-6
centimeters per second when compacted, or a synthetic liner of sufficient thickness to exhibit
structural integrity and an effective hydraulic conductivity no greater than that.of the natural material
liner, according to 15A NCAC 2H .0219(f).
6. Applicable Boundaries:
The COMPLIANCE BOUNDARY and REVIEW BOUNDARY for the waste disposal area is
specified by regulations in 15A NCAC 2H, Waste Not Discharged to Surface Waters, specifically
.0219(k)(1)(C)(i)(IH). The Compliance Boundary and the Review Boundary for groundwater shall be
established at the property boundary. An exceedance of Groundwater Quality Standards at or beyond
the Compliance Boundary is subject to remediation action according to 15A NCAC 2L .0106(d)(2).
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 keep 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 frorn the date of the inspection and shall be
made available upon request to the Division or other permitting authority.
3. Any duly authorized officer, employee, or representative of the Division 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.
VI. 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. The Operational Agreement between the Permittee and the Environmental Management Commission is
incorporated herein by reference and shall be 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 Statutes § 143-215.6A to § 143-215.6C for violation of or failure to act in accordance with the
terms and conditions of this permit.
4. 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
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.

5. Failure to abide by the conditions and limitations contained in this permit may subject the Permittee to
an enforcement action by the Division in accordance with North Carolina General Statute 143-215.6A
to 143-215.6C.
6. 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 government agencies (local, state, and
federal) which have jurisdiction, including but not limited to applicable river buffer rules in 15A NCAC
2B.0200, erosion and sedimentation control requirements in 15A NCAC Chapter 4 and under the
Division's General Permit NCG010000, and any requirements pertaining to wetlands under 15A NCAC
2B .0200 and 2H .0500.
7. A set of approved plans and specifications for the subject project must be retained by the Permittee for
the life of the project.
8. The annual administering and compliance fee must be paid by the Permittee within thirty 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 15 NCAC 211.0205 (c)(4),
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.
Permit issued this the 21st day of July, 2003
NORTH OLINA ENVIRONMENTAL MANAGEMENT COMMISSION
Alan W. Klimek, P.E., Director
Division of Water Quality
By Authority of the Environmental Management Commission
Permit Number WQ0022052

Permit No. WQ0022052
July 21, 2003
ENGINEER'S CERTIFICATION
Partial Final
I, , as a duly registered Professional Engineer in the State of
North Carolina, having been authorized to observe (periodically, weekly, full time) the construction of the project,
Project Name Location and County
for the Permittee hereby state that, to the best of my abilities, due care and diligence was used in the observation
of the construction such that the construction was observed to be built within substantial compliance and intent of
this permit, the approved plans and specifications, and other supporting materials.
Signature Registration No.
Date
10

A&K #02049
STATE OF NORTH CAROLINA
"OUNTY OF Veiider
Permit No. LA/o�
OPERATIONAL AGREEMENT
This AGREEMENT made pursuant to G.S. 143-215.1 (dl) and entered into this _ 2� s, day of
♦11JLy .2cyp3 __, by and between the North Carolina Environmental Management
Commission, an agency of the State of North Carolina, hereinafter known as the COMMISSION; and
Henderson Farms, iLC , a corporation/general partnership registered/licensed to do
business in the State of North Carolina, hereinafter known as the DEVELOPER.
WITNESSETH:
The DEVELOPER is the owner of the certain lands lying in Pender County, upon
which it is erecting and will erect dwelling units and other improvements, said development to be known
as Henderson Farms Subdivision. (hereinafter the Development).
2, The DEVELOPER desires, to construct a wastewater collection system with pumps, wastewater treatment
works, and/or disposal facilities (hereinafter Disposal System) to provide sanitary sewage disposal to serve
the Development on said lands.
3. The DEVELOPER has applied to the COMMISSION for the issuance of a permit pursuant to G.S. 143-
215.1 to construct, maintain, and operate the Disposal System.
4. The DEVELOPER has created or shall create unit ownership in said dwellings units, other improvements
and lands through filing of a Declaration of Unit Ownership (hereinafter Declaration), pursuant to Chapter
47C of the North Carolina General Statutes.
5. The DEVELOPER has caused to be formed or -will cause to be formed at the time of filing of the
Declaration, the (IJrut Owners' Association) Henderson Farms Homeowners Association (hereinafter
Association), a non-profit corporation organized and existing under and by the virtue of the laws of the
State of North Carolina, for the purpose, among others, of handling the property, affairs and business of the
Development; of operating, maintaining, re -constructing and repairing the common elements of the lands
and improvements subject to unit ownership, including the Disposal System; and of collecting dues and
assessments to provide funds for such operation, maintenance, re -construction and repair.
6. The COMMISSION desires to assure that the Disposal System of the Development is properly
constructed, maintained and operated in accordance with law and permit provisions in order to protect the
quality of the waters of the State and the public interest therein.
NOW, THEREFORE, in consideration of the promises and the benefits to be derived by each of the parties
hereto, the COMMISSION and DEVELOPER do hereby mutually agree as follows:
1. The DEVELOPER shall construct the Disposal System in accordance with the permit and plans and
specifications hereafter issued and approved by the COMMISSION, and shall thereafter properly operate
and maintain such systems and facilities in accordance with applicable permit provisions and law.
2. The DEVELOPER shall not transfer ownership and/or control of the Disposal System to the Association
until construction has been completed in accordance with the permit and approved plans, and the staff of
FORM: DEV 10/99 Page 1 of 3

the Division of Water Quality has inspected and approved of the facilities_ In order to change the name of
the permit holder, the DEVELOPER must request that the permit be reissued to the Association. The
request must include a copy of the Association Bylaws and Declaration.
3, The DEVELOPER shall not transfer, convey, assign or otherwise relinquish or release its responsibility for
the operation and maintenance of its Disposal System until a permit has been reissued to the
DEVELOPER's successor.
4. The DEVELOPER shall provide in the Declaration and Association Bylaws that the Disposal System and
appurtenances thereto are part of the common elements and shall thereafter be properly maintained and
operated in conformity with law and the provisions of the permit for construction, operation, repair, and
maintenance of the system and facilities. The Declaration and Bylaws shall identify the entire wastewater
treatment, collection acld disposal system as a common element which will receive the highest priority for
expenditures by the Association except for Federal, State, and local taxes and insurance.
5. The DEVELOPER shall provide in the Declaration and Association Bylaws that the Disposal System will
be maintained out of the common expenses. In order to assure that there shall be funds readily available to
repair, maintain or construct the Disposal System, beyond the routine operation and maintenance expenses,
the Declaration and Association Bylaws shall provide that a fund be created out of the common expenses.
Such fund shall be separate from the routine maintenance funds allocated for the facility and shall be part of
the yearly budget.
6. In the event the common expense allocation and separate fund are not adequate for the construction, repair,
and maintenance of the Disposal System, the Declaration and Association Bylaws shall provide for special
assessments to cover such necessary costs. There shall be no limit on the amount of such assessments, and
the Declaration and Bylaws shall provide that such special assessments can be made as necessary at any
time.
7. If a wastewater collection system and wastewater treatment and/or disposal facility provided by any city,
town, village, county, water and sewer authorities, or other unit of government shall hereinafter become
available to serve the Development, the DEVELOPER shall take such action as is necessary to cause the
existing and future wastewater of the Development to be accepted and discharged into said governmental
system, and shall convey or transfer as much of the Disposal System and such necessary easements as the
governmental unit may require as condition of accepting the Development's wastewater.
8. Recognizing that it would be contrary to the public interest and to the public health, safety and welfare for
the Association to enter into voluntary dissolution without having made adequate provision for the
continued proper maintenance, repair and operation of its Disposal System the DEVELOPER shall
provide in the Association Bylaws that the Association shall not enter into voluntary dissolution without
first having transferred its said system and facilities to some person, corporation or other entity acceptable
to and approved by the COMMISSION by the issuance of a permit.
9. The agreements set forth in numbered paragraphs 1, 2, 3, 4, 5, 6, 7, and 8 above shall be conditions of any
permit issued by the COMMISSION to the DEVELOPER for the construction, maintenance, repair and
operation of the Disposal System.
10. A copy of this agreement shall be filed at the Register of Deeds in the County(ies) where the Declaration is
filed and in the offices of the Secretary of State of North Carolina with the Articles of Incorporation of the
Association.
FORM: DEN 10199 Page 2 of 3

IN WITNESS WHEREOF, this agreement was executed in duplicate originals by the duly authorized
representative of the parties hereto on the day and year written as indicated by each of the parties named below:
FOR IRO NTAL Henderson Farms, LLC
' SSION Name of DEVELOPER
AA
Bti% S�
Director (Signature)
Division of Water Quality
7- 10 3 ^
(Date)
W. Haddon Alien, III
Print Name and Title
(Date)
FORM: DEV 10/99 Page 3 of 3

WATER POLLUTION CONTROL SYSTEM OPERATORS CERTIFICATION
COMMISSION
CLASSIFICATION
RATING SHEET FOR WATER POLLUTION CONTROL SYSTEMS
FACILITY INFORMATION:
NAME OF FACILITY: Henderson Farms LLC
MAILING ADDRESS: 2413 Mimosa Place, Wilmington NC 28403 .
COUNTY: Pender County
CONTACT PERSON: W. Hadden Allen III . TELEPHONE: [phone] .
PERMIT NO.: WQ0022052 .Check One: NC___., WQ_ HEALTH DEPT. .
ORC: . TELEPHONE:
RATING INFORMATION: (Before completing this section, please refer to pages 2-4)
PERMITTED FLOW: 0.024 MGD BNR? YES . NO X .
CHECK CLASSIFICATION: WASTEWATER: 1 2 X 3 4
COLLECTION: 1 2 3 4
SPRAY IRRIGATION _X_ SUBSURFACE LAND APPLICATION
PHYSICAL/CHEMICAL GRADE I GRADE II
RATED BY: —Ed Beck_ REGION _WIRO DATE:_01/22/03
REGIONAL OFFICE TELEPHONE NUMBER: ( ) . EXT.