WQ0029233_Final Permit_20051003

�QF W A rF�
Q Michael F. Easley, Governor
William G. Ross Jr., Secretary
{— North Carolina Department of Environment and Natural Resources
(� Alan W. Klimek, P.E. Director
Division of Water Quality
October 3, 2005
WILLIAM H. CLARK — VICE PRESIDENT OF OPERATIONS
CENTER DESTINATION PROPERTIES
485 FALLS BROOK DRIVE
TUCKASEEGEE, NORTH CAROLINA 28783
Subject: Permit No. WQ0029233
Bear Lake Reserve
Wastewater Treatment and
Reclaimed Water Utilization System
Jackson County
Dear Mr. Clark:
In accordance with your permit application received August 18, 2005, and subsequent additional
information received September 15, 2005, we are forwarding herewith Permit Number WQ0029233,
dated October 3, 2005, to Centex Destination Properties 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 September 30, 2010, and shall be
subject to the conditions and limitations as specified therein. Please pay particular attention to the
monitoring requirements in this permit. Failure to establish an adequate system for collecting and
maintaining the required operational information will result in future compliance problems.
If any parts, requirements, or limitations contained in this permit are unacceptable, you have the
right to request an adjudicatory hearing upon written request within thirty (30) days following receipt of
this permit. This request must be in the form of a written petition, conforming to Chapter 150B of the
North Carolina General Statutes, and filed with the Office of Administrative Hearings, 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 Thomblarg at [phone].
E
an W.
cc: Jackson County Health Department
Asheville Regional Office, Aquifer Protection Section
Mark Brooks, PE — Brooks & Medlock Engineering, PLLC
Technical Assistance and Certification Unit
Aquifer Protection Central Files
LAU Files
No�rthCarolina
NatA6ra11r(
Aquifer Protection Section 1636 Mail Service Center Raleigh, NC 27699-1636 Phone [phone] Customer Service
Internet: h2o.enr.state.ne.us 2729 Capital Boulevard Raleigh, NC 27604 FAX [phone]
An Equal Opportunity/Affirmative Action Employer— 50% Recycled110 % Post Consumer Paper

NORTH CAROLINA
ENVIRONMENTAL MANAGEMENT COMMISSION
DEPARTMENT OF ENVIRONMENT AND NATURAL RESOURCES
RALEIGH
WASTEWATER TREATMENT AND RECLAIMED WATER UTILIZATION 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
Centex Destination Properties
Jackson County
FOR THE
construction and operation of a wastewater treatment and reclaimed water utilization system limited to
125,000 gallon per day (GPD) from April thru November, and 25,000 GPD from December thru March,
which consists of.
an influent pump station with dual 220 gallon per minute (GPM) pumps and audiblelvisual alarms; an
influent flow meter; a manually cleaned bar screen; a 35,000 gallon flow equalization basin with two (2)
116 GPM pumps and two (2) 71 cubic feet per minute (CFM) blowers; a flow splitter box; two (2) 12,500
gallon anoxic tanks each with two (2) activated sludge airlift pumps and two (2) 1.9 horsepower (hp)
mixers; four (4) 29,300 gallon aeration tanks served by three (3) 135 CFM blowers; four (4) 10,600
gallon clarifiers each with air lift returns; a 34,400 gallon aerated sludge holding tank with air lift pumps
and one (1) 71 CFM blower; a microscreen drum filter with a high pressure backwash system; an
Ultraviolet (UV) disinfection system; an effluent flow meter; a turbidimeter; an onsite emergency
generator; an 18,000 gallon pump tank with dual 190 GPM pumps and audible/visual alarms; a 625,000
gallon synthetically lined five (5) day upset pond; a 344,900 gallon above ground circular storage tank; a
drip irrigation flow meter; a disc filter; twenty (20) drip irrigation fields totaling 15.2 acres and served by
approximately 44,100 emitters each rated at 1.02 gallons per hour (GPH);
to serve 958 bedrooms and a clubhouse at Bear Lake Reserve with no discharge of wastes to the surface
waters, pursuant to the application received August 18, 2005 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 September 30, 2010, and shall be
subject to the following specified conditions and limitations:

I. PERFORMANCE STANDARDS
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. If this project is to be completed in phases and paxtially certifiedyou shall
retain the responsibilityresponsibili1y to track further construction approved under the same permit, and shall
provide a final certificate of completion once the entire project has been com feted. Mail the
Certification to the Land Application Unit, 1636 Mail Service Center, Raleigh, NC 27699-1636.
2. The Asheville 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.
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, 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 water or ground water 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.
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. A sign shall be
posted in plain sight in the clubhouse showing these activities.
9. The disposal system shall be connected to a rain or moisture sensor that shall indicate when
wastewater application is not appropriate in accordance with Condition 11(4) of this permit.
2

10. The following shall be requirements for the reclaimed water distribution, storage, and utilization
facilities: I
a. All reclaimed water valves, storage facilities, and outlets shall be tagged or labeled to warn
the public or employees that the water is not intended for drinking. Where appropriate, such
warning shall inform the public or employees to avoid contact with the water.
b. All reclaimed water piping, valves, outlets, and other appurtenances shall be color -coded,
taped, or otherwise marked to identify the source of the water as being reclaimed water.
i. All reclaimed water piping and appurtenances shall be either colored purple (i.e., 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: RECLAMED WATER — DO NOT
DRINK." Identification tape shall be installed on top of reclaimed water pipelines,
fastened at least every 10 feet to each pipe length and run continuously the entire length
of the pipe.
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. Above -ground hose bibs (i.e., spigots or other hand -operated connections) shall not be
present. Hose bibs shall be located in locked below -grade vaults that shall be clearly labeled
as being of non. -potable quality. As an alternative to the use of locked below -grade vaults
with standard hose bibs services, hose bibs, which can only be operated by a special tool or
connected to a special hose connection, may be placed in non -lockable underground services
boxes clearly labeled as non -potable water.
II. OPERATION AND MAINTENANCE REQUIREMENTS
1. 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 Cominission (WPCSOCC), the Perm;ittee 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 -around 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 annual and instantaneous application rates shall not exceed the following:
Irrigation Field
Area
(acres)
Dominant Soil
Series
Instantaneous
Loading Rate
(inches/hour)
Annual Loading
Rate
(inches) ear)
A
0.67
Cashiers
0.05
77.5
B
0.84
Cashiers
0.05
94.2
C
0.82
Cashiers
0.05
79.7
D
1.26
Cashiers
0.05
76.5
E
0.74
Cashiers
0.05
77.2
F
0.95
Cashiers
0.05
81.2
G
0.71
Chandler
0.05
69.8
H
0.53
Cashiers
0.05
85.0
I
0.85
Cashiers
0.05
88.0
K
099
Cashiers
0.05
78.1
L
0.83
Cashiers
0.05
70.5
M
0.52
Cashiers
0.05
73.4
N
0.58
Cashiers
0.05
66.2
0
0.50
Cashiers
0.05
86.4
P
1.10
Chandler
0.05
88.7
Q
0.43
Chandler
0.05
96.0
R
0.70
Cashiers
0.05
85.3
S
0.92
Cashiers
0.05
74.1
T
0.61
Cashiers
0.05
80.8
U
0.58
Chandler
0.05
104.9
Total
15.2
8. 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 Bear Lake Reserve shall be irrigated onto the
irrigation area.
10. Freeboard in the storage tank and five (5) day upset pond shall not be less than two (2) feet at any
time.
I L A gauge to monitor waste levels in the storage tank and five (5) day upset pond shall be installed
prior to operation. This gauge shall have readily visible permanent markings indicating the
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 top of the tank elevations. Caution must
be taken not to damage the integrity of the tank structure when installing the gauge.
al

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 rune,
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 re -treatment or treated in the five-day pond prior
to discharge to the storage pond.
111. MONITORING AND REPORTING REQUIREMENTS
Any monitoring (including groundwatek, 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. A representative flow through the treatment plant 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 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. The Permittee shall keep records of flow measurement
device calibration on file 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 Averages
Daily (Instantaneous) Maximumc
Flow (April thru November)
125,000 GPD
Flow (December thru March)
25,000 GPD
BOD5 (5-day, 20°C)
10 mg/1
15 mg/l
NH3 as N
4 mg/l
6 mg/1
TSS
5 mg/1
10 mg/1
Fecal Coliform
14 per 100 ml b
25 per 100 mil
Turbidity
10 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 Permittee shall monitor the effluent from the subject facilities 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
*21Month
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 March, 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 limitations.
6

4. The Perm.ittee shall maintain adequate records 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.
5. Freeboard in the storage tank and five (5) day upset pond shall be recorded weekly.
6. Three (3) copies of all monitoring data [as specified in Conditions 111(2) and 111(3)] on Form
NDMR-1 and three (3) copies of all operation and disposal records [as specified in Conditions
111(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
Information Processing 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 Asheville Regional Office, telephone number (828)
296-4500, 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
1. Vertical Separation Requirements:
Waste shall not be applied or discharged onto or below the land surface when the vertical
separation between the waste and the seasonal high water table is less than one (1) foot.
2. Liner Requirements:
The five day upset 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 211.0219(f).
3. Applicable Boundaries:
The COMPLIANCE BOUNDARY and REVIEW BOUNDARY for the waste disposal area(s) is
specified by regulations in 15A NCAC 2H, Waste Not Discharged to Surface Waters, specifically
.0219(k)(1)(C)(i)(M). 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
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 Pernaittee.
This log of inspections shall be maintained by the Permittee for a period of three years from the
date of the inspection and shall be made available 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
1. 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 (i.e.,
Engineering Calculations, Soils Report, Hydrogeologic Report, Agronomic Report etc.).
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.
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. The Permittee shall retain a set of approved plans and specifications for the subject facility for the
life of the .project.
M

8. The Permittee shall pay the annual administering and compliance fee within thirty days of 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 2H .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 3rd day of October, 2005
NORTH
AL MANAGEMENT COMMISSION
Alan W. Klimek, PE., Director
Division of Water Quality
By Authority of the Environmental Management Commission
Permit Number WQ0029233
10

Permit No. WQ0029233
October 3, 2005
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 tinge) 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
Date
Registration No.
11

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STATE OF NORTH CAROLINA
COUNTY OF—u.Atxso4
Permit No. t,J0oo2-5Z33
DEVELOPER'S OPERATIONAL AGREEMENT
This AGREEMENT made pursuant to G.S. 143-215.1 (dl) and entered into this day of
:�6Ff0,;11662 , by and between the North Carolina Environmental Management
Commission, an agency of the State of North Carolina, hereinafter known as the COMMISSION; and
4�J,Gy 'riva5 Ai?I a corporation/general partnership registered/licensed to do
business in the State of North Carolina, hereinafter known as the DEVELOPER.
WITNESSETH:
I . The DEVELOPER is the owner of the certain lands lying in _Jackson County, upon which it is
erecting and will erect dwelling units and other improvements, said development to be known
as Bear Lake Reserve (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 or 47F 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 Centex Homes, a Nevada general partnership,
(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:
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
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.
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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 and 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 fixture 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.
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 THE ENVIRONMENTAL
MANAGEMENT COMMISSION
Alan W. Klimek, P.E., Director
Division of Water Quality
(Date)
Name of DEVELOPER
B
(Signature)
Print Name and Title
�lz �-
(Date)