WQ0029945_Final Permit_20060523

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May 23, 2006
RANDY ALLEN -- PRESIDENT
R.A. NORTH DEVELOPMENT 1, INC.
110 MATTHEWS STATION STREET
SUITE 2-D
MATTHEWS, NORTH CAROLINA 28105
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
Subject: Permit No. WQ0029945
Summerhouse on Everett Bay
Wastewater Treatment and
Reclaimed Water Utilization System
Onslow County
Dear Mr. Allen:
In accordance with your permit application received April 4, 2006, and subsequent additional
information received May 2, 2006, we are forwarding herewith Permit Number WQ0029945, dated May
23, 2006, to R.A. North Development I, Inc. as a provisional permit for the subject wastewater treatment
and reclaimed water utilization system. -
This permit has been deemed provisional, since the Permittee is not the owner nor is in contract to
own the property that the proposed wastewater treatment and reclaimed water utilization system will
serve. This provisional permit states that the Division conceptually approves the subject wastewater
treatment and reclaimed water utilization system, as well as all associated materials, loading rates, etc.
However, the Permittee is strictly forbidden to pursue the construction and/or operation of the subject
system without Division approval. To obtain Division approval, please submit a minor modification
request demonstrating that the Permittee is either the owner or is under contract to own the subject
property -
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. 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 150E 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
No thCarolina
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Aquifer Protection Section 1636 Mail Service Center Raleigh, NC 27699-1636 Phone [phone] Customer Service
Internet: ht1p:/fh2o.enr.state.nc.us 2728 Capital Boulevard Raleigh, NC 27604 Fax [phone]
Fax [phone]
An Equal OpportunitylAfrmative Action Employer — 50% Reoycled110% Post Consumer Paper

One set of approved plans and specifications is being forwarded to you. if you need additional
information concerning this matter, please contact Nathaniel Thornbur at [phone].
Sincerely
Alan W. Klimek, P.E.
CC' Onslow County Health Department
Wilmington Regional Office, Aquifer Protection Section
Kevin Eberle, PE — McKim & Creed, P.A.
Vardry Austin, PE — McKim & Creed, P.A.
Technical Assistance and Certification Unit
Aquifer Protection Central Files
LAU Files
2

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
R.A. North Development I, Inc.
Onslow County
FOR THE
provisional permitting of a 400,000 gallon per day (GPD) wastewater treatment and reclaimed water
utilization system consisting of: a mechanically cleaned fine screen; an influent flowmeter; a 184,373
gallon flow equalization basin with three (3) 347 gallon per minute (GPM) variable frequency drive
pumps, two (2) 315 cubic feet per minute (CFM) 20 horsepower (hp) blowers, one (1) 6 hp submersible
mixer and a coarse bubble diffuser system; a flow splitter box; four (4) 2 millimeter (mm) drum screens;
four (4) 44,000 gallon Membrane Bio-Reactor (MBR) basins each consisting of: a 13,000 gallon anoxic
basin with a 486 GPM anoxic recirculation pump, mixer and flowmeter; a 27,000 gallon fine bubble
aeration basin; a 4,000 gallon membrane tank with a 576 GPM membrane mixed liquor
recirculationibiosolids wasting pump, a 151 GPM permeate pump and flow meter, and two (2) racks of 36
microfiltration modules each at a loading rate of 15 gallons per day per square foot (GPD/fe); and one
Membrane Operating: System, 313 CFM 10 hp blower, , one (1) 268 CFM 10 hp blower serving biological
process aeration; a chemical clean -in -place system consisting of sodium hypochlorite feed system and
citric acid feed system located in a chemical building on -site; two (2) 129,400 gallon aerobic sludge
digesters with (2) telescoping decant valves, one (1) 300 GPM sludge pump, two vacuum track pump
connections, two (2) submersible 6 hp mixers, three (3) 460 CFM 20 hp blowers and a coarse bubble
diffuser system; four (4) ultraviolet (UV) disinfection chambers each with two (2) lamps; a sodium
hypochlorite feed & storage and feed system for maintaining chlorine residual in the reclaimed water and
a total residual chlorine analyzer for monitoring and controlling residual chlorine concentrations; a
permanent standby generator; an odor control facility; a turbidimeter; a combination reclaimed
water/reject water flow meter; a 9,547 gallon pump station with two (2) 400 GPM pumps with
audible/visual high water alarms; an on -site, non -potable, reclaimed water hydropneumatic pressure
maintenance system and distribution pipe network; an Operator. Control Building with analytical
laboratory; an approximately 2.54 million gallon synthetically lined upset basin; a 10.71 million gallon
infiltration basin (#1) with a 219,533 square foot (ft2) footprint and a 1.099 GPD/ft2 loading rate; a 4.74
million gallon infiltration basin (#2) with a 91,121 flz footprint and a 1.099 GPD/ftZ loading rate; one (1)
groundwater control pump station with two (2) 600 GPM pumps, audible/visual alarms and a flowmeter;
one (1) groundwater control pump station with two (2) 300 GPM pumps, audible/visual alarms and a
flowmeter; and a 36 acre artificially constructed Spicer Lake to receive the groundwater discharge to
serve 1,036 lots containing 3,189 bedrooms and a Clubhouse with kitchen facilities at Summerhouse at
Everett Bay with no discharge of wastes to the surface waters, pursuant to the application received April
4, 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 30, 2011, and shall be subject to
the following specified conditions and limitations:
1. PERFORMANCE STANDARDS
1_ Prior to construction and/or operation of the subject permit, the Permittee shall submit to the
Division documentation that the Permittee is the current property owner, or is under contract to
purchase two (2) tracts of land currently owned by Billy and Doris Sebindewolf (Onslow County
Parcel Number 762-43) and Sandra and Maurice Canady (Onslow County Parcel Number 748-3).
Documentation shall be sent to:
Land Application Unit
1636 Mail Service Center
Raleigh, North Carolina 27699-1636
Until this documentation and a minor permit modification request is received and approved by the
Division, the Penmittee is strictly forbidden from all construction activities related to this project.
2. 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 low -rate infiltration
basins 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.
3. 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.
4. 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.
5. Diversion or bypassing of the untreated wastewater from the treatment facilities is prohibited.
6. The following buffers shall be maintained:
a. 100 feet between low -rate infiltration basins and water supply wells,
b. 100 feet between low -rate infiltration basins and waters classified as SA,
c. 25 feet between low -rate infiltration basins and surface waters not classified as SA,
d. 100 feet between wastewater treatment units and wells, and
e. 50 feet between wastewater treatment units and property lines.
7. Public access to the Iow-rate infiltration sites shall be controlled during active site use. Such
controls shall include the posting of signs showing the activities being conducted at each site. A
sign stating that reclaimed water is being utilized in the infiltration basins shall be placed in clear
public view at the clubhouse.
8. 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.

9. The following shall be requirements for the reclaimed water distribution, storage, and utilization
facilities:
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.
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 too] or
connected to a special hose connection, may be placed in non -lockable underground services
boxes clearly Iabeled 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 low -rate 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 rates for each of the two (2) low -rate infiltration basins shall not exceed I.099
GPD/ft'.
5. Adequate measures shall be taken to divert stormwater from the low -rate infiltration basins.
6. An automatically activated standby power source shall be on site and operational at all tithes. If a
generator is employed as an alternate power supply, it shall be tested weekly by interrupting the
primary power source.
7. No type of wastewater other than that from Summerhouse at Everett Bay shall be disposed via the
low -rate infiltration basins.
8. Freeboard in the low -rate infiltration basins shall not be less than two (2) feet at any time.

9. Gauges to monitor waste levels in the low -rate infiltration basins shall be installed prior to
operation. Each gauge shall have readily visible permanent markings indicating the maximum
liquid level at the top of the temporary liquid storage volume, and top of the dam elevations.
10. 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.
11. All wastewater shall be routed to the five-day holding basin 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
basin shall be pumped back to the treatment plant for re -treatment or treated in the five-day basin
prior to discharge to the low -rate infiltration basins.
12. Adequate measures shall be taken to provide restricted access to the wastewater treatment plant
and five day upset pond.
13. The two (2) infiltration basins shall be periodically dredged to remove deposited materials.
Records shall be kept on site for a period of five (5) years, and the Wilmington Regional Office
shall be notified prior to dredging.
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
4

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) Maximum c
Flow
392,680 GPD
BOD5 (5-day, 20°C)
10 mg/l
15 mg/1
NH3 as N
4 mg/I
6 mg/1
TSS
5 mg/1
10 mg/1
Total Nitrogen
10 mg/1
Total Phosphorus
2 mg/1
Fecal Coliform
I4 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.
s 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.
` 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 infiltration
for the following parameters:
Parameter
Sampling Point
Sampling Frequency
Type of Sample
FIow
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
Total Nitrogen
Effluent
*2/Month
Composite
Total Phosphorus
Effluent
*2/Month
Composite
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.
5

** 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 monitor the surface water at the specified locations for the following
parameters:
Parameter
Sampling Points
Sampling Frequency
Type of Sample
Fecal Coliform
Surface Water Stations 1, 2 and 3
*Triannually
Grab
PH
Surface Water Stations 1, 2 and 3
*Triannually
Grab
Total Nitrogen
Surface Water Stations 1, 2 and 3
*Triannually
Grab
* Triannually sampling shall be conducted during March, July and November.
5. The Permittee shall monitor the groundwater pump station effluent at a point prior to discharge
for the following parameter:
Parameter
Sampling Point
Sampling
Frequency
Type of
Sample
Flow
Groundwater Pump Station Discharge
Continuous
Recording
Nitrate (NO3-N)
Groundwater Pump Station Discharge
*Triannually
Grab
Chloride
Groundwater Pump Station Discharge
*Triannually
Grab
pH
Groundwater Pump Station Discharge
*Triannually
Grab
Fecal Coliforms
Groundwater Pump Station Discharge
*Triannually
Grab
Total Dissolved Solids (TDS)
Groundwater Pump Station Discharge
*Triannually
Grab
Total Ammonia Nitrogen'
(NH3-N)
Groundwater Pump Station Discharge
*Triannually
Grab
Total Organic Carbon (TOC)
Groundwater Pump Station Discharge
*Triannually
Grab
* Triannually sampling shall be conducted during March, July and November.
For Total Organic Carbon (TOC), if concentrations greater than 10 mg/l are detected, additional
sampling and analysis must be conducted to identify the individual constituents comprising this
TOC concentration.
6. The Permittee shall maintain adequate records tracking the amount of water disposed via the
groundwater lowering system. These records shall include, but are not necessarily limited to the
following information:
a. Date and time of groundwater lowering,
b. Volume of water pumped,
c. Length of time groundwater is pumped, and
d. Weather conditions.
7. Freeboard in the low -rate infiltration basins shall be recorded weekly.
0

8. Three (3) copies of all monitoring data [as specified in Conditions 1II(2), III(3), III(4) and III(5)]
on Form NDMR-1 and three (3) copies of all operation and disposal records [as specified in
Conditions III(6) and III(7)] 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
9. 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.
10. 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 membrane tank
effluent.
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 devices.
e. Date and results of power interruption testing on alternate power supply.
11. Noncompliance Notification:
The Perrnittee 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:
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. Liner Requirements
The five-day upset basin 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).
2. 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)(111). 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 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
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. FaiIure 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).
9. The Permittee, at Ieast 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 23rd day of May 2006
NORTH C OLINA E VIRONMENTAL MANAGEMENT COMMISSION
Alan W. Klimek, P.E., Director
Division of Water Quality
By Authority of the Environmental Management Commission
Permit Number WQ0029945
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Summerhouse on Everett Bay
Infiltration Basins

. STATE OF NORTH CAROLINA COUNTY OF Onslow Permit No. W00029945
OPERATIONAL AGREEMENT
This AGREEMENT made pursuant to G.S. 143-215.1 (dl) and entered into this 2nd 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 R.A. North Development I., Inc., a
corporation/general partnership registered/]icensed to do business in the State of North Carolina, hereinafter
known as the DEVELOPER.
W ITNES SETH:
The DEVELOPER is the owner of the certain lands lying in Onslow County, upon which it is erecting and
will erect dwelling units and other improvements, said development to be known as Summerhouse on
Everett Bay (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 Summerhouse on Everett Bay 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:
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.
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.
FORM: DEV 09/05 Page 1 of 2

4. The DEVELOPER shall provide in the Declaration and Association Bylaws that the Disposal System-ar•d
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 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.
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 VIRON L R.A. North Development I., Inc.
MA G C ION Name o7VELOPER
AB� ",
Alan W. Klimek, P.E., Director (Signature)
Division of Water Quality
Randy Allen President
Print Name and Title
25-1
(Date) (Date)
FORM: DEV 09/05 Page 2 of 2