WQ0029821_Final Permit_20060511

O�O� W A r�RQG Michael F. Easley, Governor
l William G. Ross Jr., Secretary
? T- North Carolina Department of Environment and Natural Resources
0 Alan W. Klimek, P.E. Director
1 Division of Water Quality
May 11, 2006
Kyle Corkum
Bogue Watch, LLC
5511 Capital Center Drive, Suite 105
Raleigh, NC 27606
Subject: Permit No. WQ0029821
Bogue Watch WWTP
Wastewater Treatment and
Reclaimed Water Utilization System
Carteret County
Dear Mr. Corkum:
In accordance with your permit application received February 7, 2006, and subsequent additional
information received March 7, 2006 and May 8, 2006, we are forwarding herewith Permit Number.
WQ0029821, dated May 11, 2006, to Bogue Watch, 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 April 30, 2011, and shall be subject to
the conditions and limitations as specified therein. PIease 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 I50B of the
North Carolina General Statutes, and fled 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 Michelle McKaylt [phone],
pincer ,
(A an W. Klime , P.E.
cc: Carteret County Health Department
Wilmington Regional Office, Aquifer Protection Section
Kevin Eberle, P.E., McKim & Creed, P.A.
Technical Assistance and Certification Unit
Aquifer Protection Central Files
LAU Files
o `
NhCarolina
Avid lly
Aquifer Protection Section 1636 Mail Service Center Raleigh, NC 27699-1636 Phone [phone] Customer Service
Internet: h2o.enr.statemc.us 2728 Capital Boulevard Raleigh, NC 27604 FAX [phone] I-977-623-6748
An Equal opportunitylAtfirmative Action Employer— 50%Recycledl10% 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
Bogue Watch, LLC
Carteret county
FOR THE
construction and operation of a 150,000 GPD wastewater treatment and reclaimed water utilization
system consisting of a mechanically cleaned bar screen, a 65,700 gallon flow equalization basin with
three submersible pumps, diffused aeration system and submersible mixer, a flow splitter box, influent
flow meter, a dual train 150,000 GPD micro filtration membrane bioreactor system with each train
consisting of a 2mm drum screen, a stage one anoxic zone, a stage two aerobic zone, and a stage three
membrane tank with coarse bubble diffusers; dual train UV disinfection system; a reclaimed water pump
station with duplex submersible 200 gallon per minute pumps, reclaimed water flow meter, sodium
hypochlorite injection storage and feed system with continuous on-line total chlorine analyzer, an in plant
process wastewater pump station with duplex submersible 100 gallon per minute pumps, an on -site odor
control system, a continuous turbidity monitor/recorder, a permanent auxiliary power source, a 113,089
W five day upset storage basin with liner, two infiltration basins (388,634 ft3 and 661,993 ft3 effective
volumes), required green area, an infiltration basin level control system consisting of a perforated
groundwater collection pipe network surrounding the two infiltration basins, motorized groundwater
control valves, a groundwater pumping station with duplex 300 gpm submersible pumps and a
groundwater spray irrigation system all to serve Bogue Watch with no discharge of wastes to the surface
waters, pursuant to the application received February 7, 2006 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 April, 2011 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 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 Land Application Unit, 1636 Mail Service Center, Raleigh, NC 27699-1636.

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.
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 infiltration 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 water or ground water resulting from the operation of this facility.
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 infiltration ponds and property lines, and
£ 50 feet between wastewater treatment units and property Iines.
8. Public access to the infiltration 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 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 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: RECLAIMED 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.
2

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 infiltration 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. 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.
4. The application rate shall not exceed a cumulative loading of 0.74 gallons per day/square feet
5_ 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.
6. No type of wastewater other than that from Bogue Watch WWTP shall be discharged into the
infiltration basins.
7. Freeboard in the five day storage pond and infiltration basins shall not be less than two (2) feet at
any time.
A waste -level gauge, to monitor waste levels in the five day storage pond and infiltration basins,
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 liquid level 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.
9. 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.
10. 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.

11. A usable green area shall be maintained for wastewater disposal. The green area shall have the
capability of accommodating the average daily flow of the facility being served without
exceeding the loading rates of the green area. A "green area", as defined in 15A NCAC 2H .0404
(g)(7), is an area suitable for waste disposal, either in its natural state or which has been modified
by planting a vegetative cover of grasses or low growing shrubbery.
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. 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
Plans and specifications for the flow measuring device shall be prepared by a licensed
Professional Engineer and submitted to the appropriate regional office 30 days prior to
installation. The flow -measuring device shall be installed within 1 year of the date of this permit.
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
150,000 GPD
BOD5 (5-day, 20°C)
10 mg/l
15 mg/l
NH3 as N
4 mg/1
6 mg/l
Total Nitrogen
10 mg/1
TSS
5 mg/l
10 mg/l
Fecal Coliform
14 per 100 ml b
25 per 100 ml
Turbidity
10 NTU
The effluent pH shall not be less than 6.0 standard units nor greater than 9.0 standard units.
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.
4

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 the 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 Coliforrn
Effluent
*2/Month
Grab
Settleable Matter
Effluent
Daily
Grab
Residual Chlorine
Effluent
Daily
Grab
NO3
Effluent
Triannually
Grab
TDS
Effluent
**Triannually
Grab
Total Nitrogen
Effluent
Monthly
Grab
TOC
Effluent
**Triannually
Grab
Chloride
Effluent
**Triannually
Grab
pH
Effluent
**TriannualIy
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.
4. The Permittee 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 discharge into each infiltration basin,
b. Volume of wastewater discharged to each infiltration basin,
c. Which infiltration basin received the discharge,
d. Length of time each infiltration basin is discharged to,
e. Continuous weekly, monthly, and year-to-date hydraulic (GPD) loadings for each infiltration
basin,
f. Weather conditions, and
5. Freeboard in the five day storage pond and infiltration basins shall be recorded weekly.
W

6. Three (3) copies of all monitoring data [as specified in Conditions HI(2) and 1II(3)] on Form
NDMR-1 and three (3) copies of all operation and disposal records [as specified in Conditions
1II(4) and III(5)] on Form NDAR-I 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.
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
[phone], 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.
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.

10. The Permittee shall monitor the effluent from the groundwater lowering device at a point prior to
discharge for the following parameters. The results shall be reported on Form NDMR:
Parameter
Sampling Point
Sampling Frequency
Type of Sample
Fecal Coliform
Prior to Discharge
Monthly*
Grab
PH
Prior to Discharge
Monthly*
Grab
Total Nitrogen
Prior to Discharge
Monthly*
Grab
*Sampling shall occur once prior to start up then monthly.
IV. GROUNDWATER REQUIREMENTS
1. 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)(III). The Compliance Boundary and 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).
2. Any additional groundwater quality monitoring, as deemed necessary by the Division, shall be provided.
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 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
L 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 213.0200, 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.
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).
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 11" day of May 2006
NORTHWIN MANAGEMENT COMMISSION
elan W. Klimek, P.E., Director
Division of Water Quality
By Authority of the Environmental Management Commission
Permit Number WQ0029821

Permit No. WQ0029821
May 11, 2006
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 Naine
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.

STATE OF NORTII CAROLINA
COUNTY OF Permit No. W00029821
OPERATIONAL AGREEMENT
This AGREEMENT made pursuant to G.S. 143-215.1 (dl) and entered into this V day
of May, 2006, by and between the NORTH CAROLINA ENVIRONMENTAL MANAGEMENT
COMMISSION, an agency of the State of North Carolina, (hereinafter known as the
"COMMISSION") and BOGUE WATCH, LLC, 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 Carteret County, upon which it
is erecting and will erect dwelling units and other improvements, said development to be
known as 196 acres located off Highway 24, Ocean, NC (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 Bogue Watch Home Owner's Association Inc. (hereinafter
Association), a non-profit corporation organized and existing under and by the virtue of the
lauds 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-
coristructing 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,
FORM: 1DEV 09/05 Page -1-

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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:
i. 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.
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 �he 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
shdll 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 tape 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.
FORM: 'DEV 09/05 Page -2-

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 fled and in the offices of the Secretary of State of North Carolina with
the Articles of incorporation of the Association.
1N WITNESS WHEREOF, this agreement was executed in duplicate originals by the duty
authorized representative of the parties hereto on the day and year written as indicated by each of
the parties named below:
FOR THE VIRONMENTAL
MANAG NT CO MISSION
Alan W. Klimek, PT., Director
Division of Water Quality
Ali r o 6
(Date)
FORM: DEV 09/05 Page -3-
DEVELOPER
BOGUE WATCH, LLC
N e: Gil
Title M
(Date)