WQ0035809_Final Permit_20170301

Water Resources
ENVIRONMENTAL QUALITY
March 1, 2017
MICHAEL J. MYERS — MANAGING MEMBER
OLD NORTH STATE WATER ComPANY, LLC
1620 CHALK ROAD
WAKE FOREST, NORTH CAROLINA 27587
Dear Mr. Myers:
ROY COOPER
Governor
MICHAEL S. REGAN
Acting Secretary
S. JAY ZIMMERMAN
Director
Subject: Permit No. WQ0035809
Stateside WWTP
High -Rate Infiltration System
Onslow County
In accordance with your permit major modification request received March 31, 2016, and
subsequent additional information received July 27, 2016, October 31, 2016, and February 3, 2017, we are
forwarding herewith Permit No. WQ0035809 dated March 1, 2017, to Old North State Water Company,
LLC, for the construction and operation of the subject wastewater treatment and high -rate infiltration
facilities.
The modifications to the subject permit are as follows: Construction and operation of Phase 1 only
(of four planned phases); significant modification of the WWTP treatment process from that previously
permitted in the March 31, 2016 Stateside WWTP permit as conveyed in the facility description herein; and
Phase 1 flows limited to 100,000 gallons per day for the Stateside WWTP and high -rate infiltration system.
This permit shall be effective from the date of issuance until February 28, 2022, shall void Permit
No. WQ0035809 issued March 31, 2016, and shall be subject to the conditions and limitations as specified
therein. Please pay particular attention to the monitoring requirements listed in Attachments A, B and C
for they may differ from the previous permit issuance. Failure to establish an adequate system for collecting
and maintaining the required operational information shall result in future compliance problems.
Please note the following permit conditions are new since the last permit issuance dated
March 31, 2016:
➢ Condition I.1. —This condition requires that the Permittee provide documentation of a recorded
setback waiver from North Carolina State University prior to operation of high -rate infiltration
Basins #3, #4, and #5.
➢ Condition L2. — Requires the Permittee to submit to the Division prior to facility startup an
approvable Operation and Maintenance Plan.
➢ Condition I.3. — Requires the Permittee to submit to the Division prior to facility startup an
approvable Residuals Management Plan.
--'-'Nothing Compares —,
State of North Carolina I Environmental Quality I Water Resources � Water Quality Permitting I Non -Discharge Permitting
1617 Mail Service Center I Raleigh, North Carolina 27699-1617
919-807-6332

Mr. Michael J. Myers
March 1, 2017
Page 2 of 2
If any parts, requirements or limitations contained in this permit are unacceptable, the Permittee
has the right to request an adjudicatory hearing upon written request within 30 days following receipt of
this permit. This request shall be in the form of a written petition, conforming to Chapter 150B of the North
Carolina General Statutes, and filed with. the Office of Administrative Hearings at 6714 Mail Service
Center, Raleigh, NC 27699-6714. Unless such demands are made, this permit shall be final and binding.
One set of approved plans and specifications is being forwarded to you. If you need additional
information concerning this permit, please contact David Schlobohm at [phone] or
[e-mail].
Sincerely,
2et, t �-
S. Jay Zimmerman, P.G., Director
Division of Water Resources
cc: Onslow County Health Department (Electronic Copy)
Wilmington Regional Office, Water Quality Regional Operations Section (Electronic Copy)
Robert G. Burgin, Jr., PE — Burgin Engineering, Inc. (Electronic Copy)
Timothy M. Stewart, PE — Parker & Associates, Inc. (Electronic Copy)
Beth Buffington — Protection and Enforcement Branch (Electronic Copy)
Digital Permit Archive (Electronic Copy)
Central Files

NORTH CAROLINA
ENVIRONMENTAL MANAGEMENT COMMISSION
DEPARTMENT OF ENVIRONMENTAL QUALITY
RALEIGH
HIGH -RATE INFILTRATION SYSTEM PERMIT
In accordance with the provisions of Article 21 of Chapter 143, General Statutes of North Carolina as
amended, and other applicable Laws, Rules and Regulations
PERMISSION IS HEREBY GRANTED TO
Old North State Water Company, LLC
Onslow County
FOR THE
operation of a 100,000 gallon per day (GPD) wastewater treatment and high -rate infiltration facility
consisting of the:
construction and operation of a 100,000 GPD Phase I wastewater treatment facility consisting of. a
magnetic flow meter; a 2 millimeter (mm), 0.35 horsepower (hp), 1,300 gallon per minute (GPM) screen;
a 28,951 gallon flow equalization tank with two 1.75 hp 120 GPM pumps (one duty / one spare), and a 40
cubic feet per minute (CFM) variable frequency drive (VFD) blower splitting duty with the sludge holding
tank; a 13,465 gallon Anoxic I tank with a 2.7 hp mixer and served by caustic, alum and micro c chemical
feeds; a 13,465 gallon Oxic tank with two internal recycle pumps (one duty / one spare) and served by a
179 CFM VFD blower providing fine bubble aeration; a 13,465 gallon Anoxic II tank with a 2.7 hp mixer
and two 410 GPM sludge recirculation pumps (one duty / one spare); a 13,465 gallon membrane tank with
16 A3 -USA U70 membranes (4 membranes stacked 4 high) at 7.7 gallon per day per square foot (GPD/ftz)
average flux rate and 86.8 GPM permeate rate served by a 28.5 CFM blower providing fine bubble air; a
28,951 gallon sludge holding tank with coarse bubble aeration at 30 CFM and served by a 30 CFM blower
splitting duty with the flow equalization tank; a 1,080 gallon clean in place (CIP) tank; a seagoing container
adjacent to the concrete tankage that contains the permeate pumps, blowers, electrical controls, SCADA
system, sludge waste pump, chlorine disinfection system, composite sampler , flow measurement
instrumentation, two ultraviolet (UV) disinfection units, a turbidimeter, and high rate infiltration basin
distribution valving; a 175 kVA backup generator; and all associated piping, valves, controls, and
appurtenances; the
construction and operation of a 100,000 GPD high -rate infiltration system consisting of. two high -rate
infiltration basins (Basins #1 and #2) with a cumulative area of 0.92 acres at a permitted loading rate of
2.47 gallons per day per square foot (GPD/ftz); and all associated piping, valves, controls and
appurtenances; the
construction and operation of a 400,000 GPD high -rate infiltration system (which shall be contingent upon
Division approval of the Permittee's compliance with Condition I.1.) consisting of: three high -rate
infiltration basins (Basins #3, #4, and 45) with a cumulative area of 1.77 acres and a permitted loading rate
of 5.16 GPD/ft; and all associated piping, valves, controls, and appurtenances; and the
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construction and operation of a groundwater lowering system consisting of approximately 4,726 linear feet
(LF) of 8 -inch perforated pipe to remove an average of 413,000 GPD of groundwater onto rip rap aprons
prior to entering wetlands adjacent to Margaret Branch; and all associated piping, valves controls and
appurtenances
to serve the Stateside WWTP, with no discharge of wastes to surface waters, pursuant to the application
received March 31, 2016, and subsequent additional information received by the Division of Water
Resources, and in conformity with the project plans, specifications, and other supporting data subsequently
filed and approved by the Department of Environmental Quality and considered a part of this permit.
This permit shall be effective from the date of issuance until February 28, 2022, shall void Permit No.
WQ0035809 issued March 31, 2016, and shall be subject to the following specified conditions and
limitations:
1. SCHEDULES
Prior to operation of high -rate infiltration Basins #3, #4, and #5, the Permittee shall submit
documentation that North Carolina State University has approved the necessary setback reduction to
77 feet for the subject three basins. Documentation shall also be provided demonstrating that the
setback waiver has been recorded in the Onslow County Register of Deeds. Until the Permittee has
submitted the required information, and received Division approval, the Permittee is prohibited from
operating Basins #3, #4, and #5. [15A NCAC 02T .0108(b)(2)]
2. An Operation and Maintenance Plan that meets the requirements of 15A NCAC 02T .0707 shall be
prepared and available for review by the Division prior to facility startup. [I 5A NCAC 02T
.0108(b)(2)]
3. A Residuals Management Plan that meets the requirements of 15A NCAC 02T.07040) and .0708 shall
be prepared and available for review by the Division prior to facility startup. [15A NCAC 02T
.0108(b)(2)]
4. Upon completion of construction and prior to operation of this permitted facility, a certification
(attached) shall be submitted from a licensed North Carolina Professional Engineer certifying that the
permitted facility has been installed in accordance with this permit, Division approved plans and
specifications, and other supporting documentation, including the location of all monitoring wells as
applicable. if this proJect is to be completed in phases and partially certified, the Permittee shall retain
the responsibility to track further construction gpproved under the same permit, and shall provide a
final certificate of completion once the entire project has been completed. Mail the Certification to the
Division of Water Resources, Water Quality Permitting Section, 1617 Mail Service Center, Raleigh,
NC 27699-1617. [15A NCAC 02T.01 16(a)]
Upon completion of construction and prior to operation of the high rate infiltration basins, each basin
shall be inspected. by a licensed Professional Geologist to verify that the constructed basins will be
capable of receiving the wastewater at the permitted loading rates. The results of this inspection, along
with the results of any testing performed, shall be signed, sealed and submitted to the Water Quality
Permitting Section, Non -Discharge Permitting Unit, 1617 Mail Service Center, Raleigh, NC 27699-
1617. [15ANCAC 02T .0108(b)(2)]
6. if the infiltration basins are to be completed in phases, at a minimum, two infiltration basins shall be
constructed initially to ensure compliance with the operation and maintenance requirements in 15A
NCAC 02T.0707. [ 15A NCAC 02T .0108(b)(1), 02T.0707.]
7. The Wilmington Regional Office, telephone number [phone], shall be notified at least 48 hours
in advance (excluding weekends and holidays) of operation of the installed facilities such that an in-
place inspection can be made. Notification to the regional supervisor shall be made from 8:00 a.m.
until 5:00 p.m. on Monday through Friday, excluding State Holidays. [15A NCAC 02T .0108(b)(2)]
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The Wilmington Regional Office, telephone number [phone], shall approve monitoring wells
MW -1, MW -2, MW -3, MW -4, MW -5 and MW -6 prior to installation, and the monitoring wells shall
be installed prior to beginning waste disposal operations. The regional office shall be notified at least
48 hours prior to the construction of any monitoring well, and such notification to the regional
supervisor shall be made from 8:00 a.m. until 5:00 p.m. on Monday through Friday, excluding State
Holidays. The monitoring wells shall be constructed such that the water Ievel in the well is never above
or below the screened (open) portion of the well at any time during the year, and in accordance with
15A NCAC 02C .0108. The general location and name for each monitoring well is marked on Figure
2. [15A NCAC 02C .0108, 02T .0108(b)(2)]
9. Within 60 days of completion of the monitoring wells, the Permittee shall submit two original copies
of a site map with a scale no greater than 1 -inch equals 100 feet; however, special provisions may be
granted upon prior approval for large properties. At a minimum, the map shall include the following
information:
a. The location and identity of each monitoring well.
b. The location of major components of the waste disposal system.
c. The location of property boundaries within 500 feet of the disposal areas.
d. The latitude and longitude of the established horizontal control monument.
e. The elevation of the top of the well casing (i.e., measuring point) relative to a common datum.
f. The depth of water below the measuring point at the time the measuring point is established.
g. The location of compliance and review boundaries.
h. The date the map is prepared and/or revised.
Control monuments shall be installed in such a manner and made of such materials that the monument
will not be destroyed due to activities taking place on the property. The map and any supporting
documentation shall be sent to the Division of Water Resources, Water Quality Permitting Section,
1617 Mail Service Center, Raleigh, NC 27699-1617. [15A NCAC 02T .0108(b)(2)]
10. Gauges to monitor waste levels in the five high -rate infiltration basins shall be installed prior to
operation. [15A NCAC 02T .0108(b)(2), 02T .0705(c)]
11. No later than six months prior to the expiration of this permit, the Permittee shall request renewal of
this permit on official Division forms. Upon receipt of the request, the Division will review the
adequacy of the facilities described therein, and if warranted, will renew the permit for such period of
time and under such conditions and limitations as it may deem appropriate. Please note Rule 15A
NCAC 02T .0105(d) requires an updated site map to be submitted with the permit renewal application.
[15A NCAC 02T .0105(d), 02T .0106, 02T .0109, 02T .0115(c)]
II. PERFORMANCE STANDARDS
The subject non -discharge facilities shall be effectively maintained and operated at all times so there is
no discharge to surface waters, nor any contravention of groundwater or surface water standards. In
the event the facilities fail to perform satisfactorily, including the creation of nuisance conditions due
to improper operation and maintenance, or failure of the infiltration areas to adequately assimilate the
effluent, the Permittee shall take immediate corrective actions including Division required actions, such
as the construction of additional or replacement wastewater treatment or infiltration facilities. [G.S.
143-215.1, 143-213.3(a)]
2. This permit shall not relieve the Permittee of their responsibility for damages to groundwater or surface
water resulting from the operation of this facility. [15A NCAC 02B .0200, 02L .0100]
3. All wells constructed for purposes of groundwater monitoring shall be constructed in accordance with
15A NCAC 02C .0108 (Standards of Construction for Wells Other than Water Supply), and any other
jurisdictional laws and regulations pertaining to well construction. [ 15A NCAC 02C .0108]
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4. Effluent quality shall not exceed the limitations specified in Attachment A. [15A NCAC 02T
.0108(b)(1), 02T .0705(b)]
5. Application rates, whether hydraulic, nutrient or other pollutant, shall not exceed those specified in
Attachment B. [15A NCAC 02T .0705(m)]
6. This disposal system was individually permitted on or after December 30, 1983; therefore, the
compliance boundary is established at either 250 feet from the effluent disposal area, or 50 feet within
the property boundary, whichever is closest to the effluent disposal area. An exceedance of
groundwater standards at or beyond the compliance boundary is subject to remediation action according
to 15A NCAC 02L .0106(d)(2) as well as enforcement actions in accordance with North Carolina
General Statute 143-215.6A through 143-215.6C. [15A NCAC 02L .0106(d)(2), 02L .0107(b)]
7. In accordance with 15A NCAC 02L .0108, the review boundary is established midway between the
compliance boundary and the effluent disposal area. Any exceedance of groundwater standards at the
review boundary shall require action in accordance with 15A NCAC 02L .0106. [ 15A NCAC 02L
.0 106, 02L .0108]
8. The Permittee shall apply for a permit modification to establish a new compliance boundary prior to
any sale or transfer of property affecting a compliance boundary. [ 15A NCAC 02L .0107(c)]
9. In accordance with 15A NCAC 02L .0107(d), no wells, excluding Division approved monitoring wells,
shall be constructed within the compliance boundary except as provided for in 15A NCAC 02L
.0107(g). [15A NCAC 02L .0107]
10. Except as provided for in 15A NCAC 02L .0107(g), the Permittee shall ensure any landowner who is
not the Permittee and owns land within the compliance boundary shall execute and file with the Onslow
County Register of Deeds an easement running with the land containing the following items:
a. A notice of the permit and number or other description as allowed in 15A NCAC 02L .0107(f)(1);
b. Prohibits construction and operation of water supply wells within the compliance boundary; and
c. Reserves the right of the Permittee or the State to enter the property within the compliance boundary
for purposes related to the permit.
The Director may terminate the easement when its purpose has been fulfilled or is no longer needed.
[15A NCAC 02L .0107(f)]
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11. The facilities permitted herein shall be constructed according to the following setbacks:
a. The setbacks for high -rate infiltration sites permitted under 15A NCAC 02T .0700 shall be as
follows (all distances in feet):
i. Any habitable residence or place of public assembly under separate ownership:
400
ii. Any habitable residence or place of public assembly owned by the Permittee:
200
iii. Any private or public water supply source:
100
iv. Surface waters:
50 '
v. Groundwater lowering ditches:
50
vi. Surface water diversions:
50
vii. Any well with exception of monitoring wells:
100
viii. Any property line:
200
ix. Top of slope of embankments or cuts of two feet or more in vertical height:
100
x. Any water line from a disposal system:
10
xi. Subsurface groundwater lowering drainage systems:
50'
xii. Any swimming pool:
100
xiii. Public right of way:
50
xiv. Nitrification field:
20
xv. Any building foundation or basement:
15
1 Setbacks to surface waters, groundwater lowering ditches and subsurface
groundwater
lowering drainage systems have been reduced to 50 feet because the treatment units are
designed to meet a Total Nitrogen of 4 mg/L and a Total Phosphorus of 2 mg/L in
accordance
with 15A NCAC 02T .0706(c).
[15A NCAC 02T .0706(a), 02T .0706(c)]
b. The setbacks for storage and treatment units permitted under 15A NCAC 02H.0200 / 15A NCAC
02T .0700 shall be as follows (all distances in feet):
i. Any habitable residence or place of public assembly under separate ownership: 100
ii. Any private or public water supply source: 100
iii. Surface waters: 50
iv. Any well with exception of monitoring wells: 100
v. Any property line: 50
[I 5A NCAC 02T .0706(d)]
III. OPERATION AND MAINTENANCE REQUIREMENTS
I . The facilities shall be properly maintained and operated at all times. 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. The Permittee shall maintain an Operation and Maintenance Plan,
which at a minimum shall include operational functions, maintenance schedules, safety measures and
a spill response plan. [15A NCAC 02T .0707]
2. Upon the Water Pollution Control System Operators Certification Commission's (WPCSOCC)
classification of the subject non -discharge facilities, in accordance with 15A NCAC 08G .0200 the
Permittee shall designate and employ a certified operator in responsible charge (ORC) and one or more
certified operator(s) as back-up ORC(s). The ORC or their back-up shall visit the facilities in
accordance with 15A NCAC 08G .0200, and shall comply with all other conditions specified in the
previously cited rules. [15A NCAC 02T .0117]
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3. Only effluent from the Stateside WWTP shall be infiltrated on the sites listed in Attachment B. [G.S.
143-215.11
4. No automobiles or machinery shall be allowed on the infiltration sites except during equipment
installation or while maintenance is being performed. [15A NCAC 02T .0108(b)(1)]
5. Public access to the infiltration sites and wastewater treatment facilities shall be prohibited. [15A
NCAC 02T .0705(p)]
The residuals generated from the wastewater treatment facilities shall be disposed or utilized in
accordance with 15A NCAC 02T .1100. The Permittee shall maintain a residual management plan
pursuant to 15A NCAC 02T .0708. [15A NCAC 02T .0708, 02T .11001
7. Diversion or bypassing of untreated or partially treated wastewater from the treatment facilities is
prohibited. [15A NCAC 02T .0705(i)]
8. Freeboard in the five high -rate infiltration basins shall not be less than two feet at any time. [15A
NCAC 02T .0705(c)]
9. Gauges to monitor waste levels in the five high -rate infiltration basins shall be provided. These gauges
shall have readily visible permanent markings, at inch or tenth of a foot increments, indicating the
following elevations: maximum liquid level at the top of the temporary liquid storage volume;
minimum liquid level at the bottom of the temporary liquid storage volume; and the lowest point on
top of the dam. [15A NCAC 02T .0108(b)(1)]
10. A protective vegetative cover shall be established and maintained on all earthen embankments (i.e.,
outside toe of embankment to maximum allowable temporary storage elevation on the inside of the
embankment), berms, pipe runs, erosion control areas, and surface water diversions. Trees, shrubs, and
other woody vegetation shall not be allowed to grow on the earthen dikes or embankments. Earthen
embankment areas shall be kept mowed or otherwise controlled and accessible. [15A NCAC 02T
.0108(b)(1)]
11. The infiltration basins shall be periodically cleaned to remove deposited materials that may impede the
infiltration process. Cleaning records shall be maintained at the facility for a period of no less than five
years, and shall be made available to the Division upon request. The Wilmington Regional Office,
telephone number [phone], shall be notified prior to each cleaning. [15A NCAC 02T
.0108(b)(1)]
12. The Permittee shall expand the rip rap beds at the terminus of the drains or take other mitigating actions
when deemed necessary by the Division staff upon the witness of sediment travel away from rip rap
material or degradation of the wetland. [15A NCAC 02T .0108(b)(1)]
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IV. MONITORING AND REPORTING REQUIREMENTS
1. Any Division required monitoring (including groundwater, plant tissue, soil and surface water analyses)
necessary to ensure groundwater and surface water protection shall be established, and an acceptable
sampling reporting schedule shall be followed. [15A NCAC 02T .0108(c)]
2. A Division certified laboratory shall conduct all laboratory analyses for the required effluent,
groundwater or surface water parameters. [15A NCAC 02H .0800]
3. Flow through the treatment facility shall be continuously monitored, and daily flow values shall be
reported on Form NDMR.
The Permittee shall install and maintain an appropriate flow measurement device to ensure the accuracy
and reliability of flow measurement consistent with accepted engineering and scientific practices.
Selected flow measurement devices shall be capable of measuring flows with a maximum deviation of
less than ten percent from true flow; accurately calibrated at a minimum of once per year; and
maintained to ensure the accuracy of measurements is consistent with the selected device's accepted
capability. The Permittee shall maintain records of flow measurement device calibration on file for a
period of at least five years. At a minimum, documentation shall include:
a. Date of flow measurement device calibration,
b. Name of person performing calibration, and
c. Percent from true flow.
[15A NCAC 02T .0105(k)]
4. The Permittee shall monitor the effluent from the subject facilities at the frequencies and locations for
the parameters specified in Attachment A. [15A NCAC 02T .0108(c)]
5. The Permittee shall maintain adequate records tracking the amount of effluent infiltrated. At a
minimum, these records shall include the following information for each infiltration site listed in
Attachment B:
a. Date of infiltration;
b. Volume of effluent infiltrated;
c. Site infiltrated;
d. Loading rates to each infiltration site listed in Attachment B; and
e. Weather conditions.
[ 15A NCAC 02T .0108(c)]
6. Freeboard (i.e., waste level to the lowest embankment elevation) in the five high -rate infiltration basins
shall be measured to the nearest inch or tenth of a foot, and recorded weekly. Weekly freeboard records
shall be maintained at the facility for a period of no less than five years, and shall be made available to
the Division upon request. [15A NCAC 02T .0108(c)]
7. Three copies of all monitoring data (as specified in Conditions IV.3. and IVA.) on Form NDMR for
each PPI and three copies of all operation and disposal records (as specified in Conditions N.5. and
IV.6. on Form NDAR-2 for every site in Attachment B shall be submitted on or before the last day of
the following month. If no activities occurred during the monitoring month, monitoring reports are still
required documenting the absence of the activity. All information shall be submitted to the following
address:
Division of Water Resources
Information Processing Unit
1617 Mail Service Center
Raleigh, North Carolina 27699-1617
[15A NCAC 02T.0 105(1)]
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8. A record shall be maintained of all residuals removed from this facility. This record shall be maintained
at the facility for a period of no less than five years, and shall be made available to the Division upon
request. At a minimum, this record shall include:
a. Name of the residuals hauler;
b. Non -Discharge permit number authorizing the residuals disposal, or a letter from a municipality
agreeing to accept the residuals;
c. Date the residuals were hauled; and
d. Volume of residuals removed.
[I 5A NCAC 02T .0108(b)(1)]
9. A maintenance log shall be maintained at this facility. This log shall be maintained at the facility for a
period of no less than five years, and shall be made available to the Division upon request. At a
minimum, this log shall include:
a. Date of calibration of flow measurement device;
b. Visual observations of the plant and plant site; and
c. Record of preventative maintenance (e.g., changing of equipment, adjustments, testing, inspections
and cleanings, etc.).
[15A NCAC 02T .0108(b)(1)]
10. Monitoring wells shall be sampled after construction and within 3 months prior to initiating non -
discharge disposal operations. Monitoring wells shall be sampled thereafter at the frequencies and for
the parameters specified in Attachment C. All mapping, well construction forms well abandonment
forms and monitoring data shall refer to the permit number and the well nomenclature as provided in
Attachment C and Figure 2. [ 15A NCAC 02T .0105(m)]
11. For initial sampling of monitoring wells, the Permittee shall submit a Compliance Monitoring Form
(GW -59) and a Well Construction Record Form (GW -1) listing this permit number and the appropriate
monitoring well identification number. Initial Compliance Monitoring Forms (GW -59) without copies
of the Well Construction Record Forms (GW -1) are deemed incomplete, and may be returned to the
Permittee without being processed. [ 15A NCAC 02T .0105(m)]
12. Two copies of the monitoring well sampling and analysis results shall be submitted on a Compliance
Monitoring Form (GW -59), along with attached copies of laboratory analyses, on or before the last
working day of the month following the sampling month. The Compliance Monitoring Form (GW -59)
shall include this permit number, the appropriate well identification number, and one GW -59a
certification form shall be submitted with each set of sampling results. All information shall be
submitted to the following address:
Division of Water Resources
Information Processing Unit
1617 Mail Service Center
Raleigh, North Carolina 27699-1617
[15A NCAC 02T .0105(m)]
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13. Noncompliance Notification:
The Permittee shall report by telephone to the Wilmington Regional Office, telephone number (910)
796-7215, as soon as possible, but in no case more than 24 hours, or on the next working day following
the occurrence or first knowledge of the occurrence of any of the following;
a. Treatment of wastes abnormal in quantity or characteristic, including the known passage of a
hazardous substance.
b. Any process unit failure (e.g., mechanical, electrical, etc.), due to known or unknown reasons,
rendering the facility incapable of adequate wastewater treatment.
c. Any facility failure resulting in a by-pass directly to receiving surface waters.
d. Any time self-monitoring indicates the facility has gone out of compliance with its permit
limitations.
c. Effluent breakout from the infiltration basin(s).
Any emergency requiring immediate reporting (e.g., discharges to surface waters, imminent failure of
a storage structure, etc.) outside normal business hours shall be reported to the Division's Emergency
Response personnel at telephone number [phone],[phone], or [phone]. Persons
reporting such occurrences by telephone shall also file a written report in letter form within five days
following first knowledge of the occurrence. This report shall outline the actions taken or proposed to
betaken to ensure the problem does not recur. [15A NCAC 02T .0105(1), 02T .0108(b)(1)]
V. INSPECTIONS
1. The Permittee shall provide adequate inspection and maintenance to ensure proper operation of the
wastewater treatment and infiltration facilities. [ 15A NCAC 02T .0108(b)]
2. The Permittee or their designee shall inspect the wastewater treatment and infiltration facilities to
prevent malfunctions, facility deterioration and operator errors resulting in discharges, which may cause
the release of wastes to the environment, a threat to human health or a public nuisance. The Permittee
shall maintain an inspection log that includes, at a minimum, the date and time of inspection,
observations made, and any maintenance, repairs, or corrective actions taken. The Permittee shall
maintain this inspection log for a period of five years from the date of the inspection, and this log shall
be made available to the Division upon request. [15A NCAC 02T .0108(b)]
3. Any duly authorized Division representative may, upon presentation of credentials, enter and inspect
any property, premises or place on or related to the wastewater treatment and infiltration facilities
permitted herein at any reasonable time for the purpose of determining compliance with this permit;
may inspect or copy any records required to be :maintained under the terms and conditions of this permit,
and may collect groundwater, surface water or leachate samples. [G.S. 143-21.5.3(a)(2)]
VI. GENERAL CONDITIONS
Failure to comply with the conditions and limitations contained herein may subject the Permittee to an
enforcement action by the Division in accordance with North Carolina General Statutes 143-215.6A to
143-215.6C. [G.S. 143-215.6A to 143-215.6C]
2. This permit shall become voidable if the permitted facilities are not constructed in accordance with the
conditions of this permit, the Division approved plans and specifications, and other supporting
documentation. [15A NCAC 02T .0110]
3. This permit is effective only with respect to the nature and volume of wastes described in the permit
application, Division approved plans and specifications, and other supporting documentation. No
variances to applicable rules governing the construction or operation of the permitted facilities are
granted, unless specifically requested and approved in this permit pursuant to 15A NCAC 02T .0105(n).
[G.S. 143-21.5.1]
WQ0035809 Version 1.2 Shell Version 151201 Page 9 of 11

4. The issuance of this permit does not exempt the Permittee from complying with any and all statutes,
rules, regulations, or ordinances, which may be imposed by other jurisdictional government agencies
(e.g., locaI, state, and federal). Of particular concern to the Division are applicable river buffer rules in
15A NCAC 02B .0200; erosion and sedimentation control requirements in 15A NCAC Chapter 4 and
under General Permit NCG010000; any requirements pertaining to wetlands under 15A NCAC 02B
.0200 and 02H .0500; and documentation of compliance with Article 21 Part 6 of Chapter 143 of the
General Statutes. [15A NCAC 02T .0105(c)(6)]
In the event the permitted facilities change ownership or the Permittee changes their name, a formal
permit modification request shall be submitted to the Division. This request shall be made on official
Division forms, and shall include appropriate property ownership documentation and other supporting
documentation as necessary. The Permittee of record shall remain fully responsible for maintaining
and operating the facilities permitted herein until a permit is issued to the new owner. [15A NCAC
02T .0104]
6. The Permittee shall retain a set of Division approved plans and specifications for the life of the facilities
permitted herein. [15A NCAC 02T .0108(b)(1)]
7. The Permittee shall maintain this permit until all permitted facilities herein are properly closed or
permitted under another permit issued by the appropriate permitting authority. [15A NCAC 02T
.01050)]
8. This permit is subject to revocation or unilateral modification upon 60 days notice from the Division
Director, in whole or part for the requirements listed in 15A NCAC 02T .0110. [ 15A NCAC 02T .0110]
9. Unless the Division Director grants a variance, expansion of the permitted facilities contained herein
shall not be granted if the Permittee exemplifies any of the criteria in 15A NCAC 02T .0120(b). [ 15A
NCAC 02T,01201
10. The Permittee shall pay the annual fee within 30 days after being billed by the Division. Failure to pay
the annual fee accordingly shall be cause for the Division to revoke this permit. [15A NCAC 02T
.0105(e)(3)]
Permit issued this the I" day of March 2017
NORTH CAROLINA ENVIRONMENTAL MANAGEMENT COMMISSION
Jay Zimmerman, P.G., Director
Division of Water Resources
By Authority of the Environmental Management Commission
Permit Number WQ0035809
WQ0035809 Version 1.2 Shell Version 151201 Page 10 of 11

Permit No. WQ0035809 High -Rate Infiltration System.
Old North State Water Company, LLC March 1, 2017
Stateside WWTP Onslow County
ENGINEERING CERTIFICATION
❑ Partial ❑ Final
In accordance with 15A NCAC 02T. 0 116, I, , as
a duly registered Professional Engineer in the State of North Carolina, having the Permittee's authorization
to ❑ periodically ❑ weekly ❑ fully observe the construction of the permitted facility, hereby state to the
best of my abilities that due care and diligence was used in the observation of the construction, such that
the facility was built within substantial compliance and intent of this permit, the Division -approved plans
and specifications, and other supporting documentation.
❑ Any variation to this permit, the Division -approved plans and specifications, and other supporting
documentation has been documented in the attacbed as -built drawings, and shall serve as the
Permittee's minor modification request to amend the permit accordingly.
Provide a brief narrative description of any variations:
THE COMPLETED ENGINEERING CERTIFICATION, INCLUDING ALL SUPPORTING
INFORMATION AND MATERIALS, SHALL BE SENT TO THE FOLLOWING ADDRESS:
NORTH CAROLINA DEPARTMENT OF ENVIRONMENTAL QUALITY
DIVISION OF WATER RESOURCES
WATER QUALITY PERMITTING SECTION
NON -DISCHARGE PERMITTING UNIT
By U.S. Postal Service:
1617 MAIL SERVICE CENTER
By Courier/Special Delivery:
512 N. SALISBURY ST.
RALEIGH, NORTH CAROLINA 27699-1617 RALEIGH, NORTH CAROLINA 27604
WQ0035809 Version 1.2 Shell Version 151201 Page 11 of 11

THIS PAGE BLANK

ATTACHMENT A — LIMITATIONS AND MONITORING REQUIREMENTS
PPI 001— WWTP Effluent
Permit Number: WQ0035809 Version: 1.2
EFFLUENT CHARACTERISTICS
EFFLUENT LIMITS
MONITORING REQUIREMENTS
PCS
Code
Parameter Description
Units of
Measure
Monthly
Average
Monthly
Geometric Mean
Daily Minimum
Daily Maximum
Measurement
Frequency
Sample
Type
00310
BOD, 5 -Day (20 °C)
mg/L
10
2 x Month
Composite
00940
Chloride (as Cl)
mg/l,
3 x Year t
Composite
50060
Chlorine, Total Residual
mg/L
5 x Week
Grab
31616
Coliform, Fecal MF, M -FC Broth, 44.5 °C
#1100 mL
14
2 x Month
Grab
50050
Flow, in Conduit or thru Treatment Plant
GPD
100,000
Continuous
Recorder
00610
Nitrogen, Ammonia Total (as N)
mg/L
4
2 x Month
Composite
00625
Nitrogen, Kjeldahl, Total (as N)
mg/L
2 x Month
Composite
00620
Nitrogen, Nitrate Total (as N)
mg/L
10
2 x Month
Composite
00600
Nitrogen, Total (as N)
mg/L
4
2 x Month
Composite
00400
pH
su
6.0
9.0
5 x Week
Grab
00665
Phosphorus, Total (as P)
mg/L
2
2 x Month
Composite
70300
Solids, Total Dissolved ---180 °C
mglL
3 x Year
Composite
00530
Solids, Total Suspended
mg/L
15
2 x Month
Composite
I. 3 x Year sampling shall be conducted in February, June and October.
WQ0035809 Version I.2 Attachment A Page 1 of 2

PPI 002, PPI 003 & PPI 004 — Groundwater
Lowering System Effluent
MONITORING REQUIREMENTS
PCS
Code
Parameter Description
p
EFFLUENT CHARACTERISTICS
Monthly
Average
Monthly
Geometric Mean
Daily Minimum
Daily Maximum
Measurement
Sample
EFFLUENT LIMITS
MONITORING REQUIREMENTS
PCS
Code
Parameter Description
p
Units of
Measure
Monthly Monthly
Average Geometric Mean Daily Minimum Daily Maximum
Measurement
Sample
00300
DO, Oxygen, Dissolved
mg/L
Frequency
Type
00680
Carbon, Total Organic (TOC)
mg/L
00610
3 x Year
Grab
00940
Chloride (as Cl)
mg/L
250
3 x Year'
Grab
50060
Chlorine, Total Residual
mg/L
2 x Month
Grab
50050
Flow, in Conduit or thru Treatment Plant
GPD
00400
pH
su
Continuous
Recorder
00610
Nitrogen, Ammonia Total (as N)
mg/L
1.5
2 x Month
Grab
2 x Month
Grab
00620
Nitrogen, Nitrate Total (as N)
mg/L
10
2 x Month
Grab
00600
Nitrogen, Total (as N)
mg/L
2 x Month
Grab
00400
pH
su
6.5
8.5
2 x Month
Grab
00665
Phosphorus, Total (as P)
mg/L
2 x Month
Grab
70300
Solids, Total Dissolved —180 °C
mg/L
500
3 x Year
Grab
1. 3 x Year sampling shall be conducted in February, June and October.
PPI 005 (upstream) & PPI 006 (downstream) — Surface Water Monitoring on Margaret Branch
EFFLUENT CHARACTERISTICS
EFFLUENT LIMITS
MONITORING REQUIREMENTS
PCS
Code
Parameter Description
p
Units of
Measure
Monthly
Average
Monthly
Geometric Mean
Daily Minimum
Daily Maximum
Measurement
Sample
Frequency
Type
00300
DO, Oxygen, Dissolved
mg/L
2 x Month
Grab
00610
Nitrogen, Ammonia Total (as N)
mg/L
2 x Month
Grab
00600
Nitrogen, Total (as N)
mg/L
2 x Month
Grab
00400
pH
su
2 x Month
Grab
00665
Phosphorous, Total (as P)
mg/L
2 x Month
Grab
WQ0035809 Version 1.2 Attachment A Page 2 of 2

ATTACHMENT B - APPROVED LAND APPLICATION SITES AND LIMITATIONS
Old North State Water Company, LLC — Stateside WWTF
Permit Number: WQ0035809 Version: 1.2
INFILTRATION AREA INFORMATION
APPLICATION LIMITATIONS
Basin
Owner
County
Latitude
Longitude
Net
Acreage
Dominant
Soil Series
Parameter
Daily Rate
Units
1
Old North State Water Company, LLC
Onslow
34.879962°
-77.482413°
0.47
On — Onslow loamy fine sand
01284 — Non -Discharge Application Rate
2.47
GPD/ftz
2
Old North State Water Company, LLC
Onslow
34.8797750
-77.4819190
0.45
On — Onslow loamy fine sand
01284 — Non -Discharge Application Rate
2.47
GPD/ftz
3
Old North State Water Company, LLC
Onslow
34.879938°
-77.480425°
0.83
On — Onslow loamy fine sand
01284 — Non -Discharge Application Rate
5.16
GPD/ftz
4
Old North State Water Company, LLC
Onslow
34.880176°
-77.480235°
0.51
On — Onslow loamy fine sand
01284 — Non -Discharge Application Rate
5.16
GPD/ftz
5
Old North State Water Company, LLC
Onslow
34.880490°
-77.479990°
0.43
On — Onslow loamy fine sand
01284 — Non -Discharge Application Rate
5.16
GPD/ftz
Totals
1.77
WQ0035809 Version 1.2 Attachment B Page 1 of 1

THIS PAGE BLANK

ATTACHMENT C — GROUNDWATER MONITORING AND LIMITATIONS
Monitoring wells: MW -1, MW -2, MW -3, MW -4, MW -5 & MW -6
Permit Number: WQ0035809 Version: 1.2
GROUNDWATER CHARACTERISTICS
GROUNDWATER STANDARDS
MONITORING REQUIREMENTS
PCS Code
Parameter Description
Daily Maximum
Frequency Measurement
Sample Type
Footnotes
00680
Carbon, Tot Organic (TOC)
3 x Year
Grab
1,6
06940
Chloride (as Cl)
250
Jjrng/L
3 x Year
Grab
I
31616
Coliform, Fecal MF, M -FC Broth, 44.5 °C
L
3 x Year
Grab
1
00610
Nitrogen, Ammonia Total (as N)
1.5
mg/L
3 x Year
Grab
1
00620
Nitrogen, Nitrate Total (as N)
10
mg/L
3 x Year
Grab
I
00400
pH
6.5-8.5
su
3 x Year
Grab
1,2
00665
Phosphorus, Total (as P)
mg/L,
3 x Year
Grab
1
70300
Solids, Total Dissolved - 180 °C
500
mg/L
3 x Year
Grab
I
GWVOC
Volatile Compounds (GC/MS)
Present: Yes/No
Annually
Grab
1, 4, 5
82546
Water Level, Distance from measuring point
feet
3 x Year
Calculated
1, 2, 3
1. 3 x Year monitoring shall be conducted in February, June, and October; Annual monitoring shall be conducted every October.
2. The measurement of water levels shall be made prior to purging the wells. The depth to water in each well shall be measured from the surveyed point on the top of the casing. The measurement of
pH shall be made after purging and prior to sampling for the remaining parameters.
3. The measuring points (top of well casing) of all monitoring wells shall be surveyed to provide the relative elevation of the measuring point for each monitoring well. The measuring points (top of
casing) of all monitoring wells shall be surveyed relative to a common datum.
4. Volatile Organic Compounds (VOC) - In November only, analyze by one of the following methods:
a. Standard Method 6230D, PQL at 0.5 gg/L or less
b. Standard Method 6210D, PQL at 0.5 µg/L or less
C. EPA Method 8021, Low Concentration, PQL at 0.5 pg/L or less
d. EPA Method 8260, Low Concentration, PQL at 0.5 gg/L or less
e. Another method with prior approval by the Water Quality Permitting Section Chief
5.
6.
7
Any method used must meet the following qualifications:
a. A laboratory must be DWR certified to run any method used.
b. The method used must, at a minimum, include all the constituents listed in Table VIII of Standard Method 6230D.
c. The method used must provide a PQL of 0.5 µg/L or less that must be supported by laboratory proficiency studies as required by DWR. Any constituents detected above the MDL but below
the PQL of 0.5 pg/L must be qualified (estimated) and reported.
If any volatile organic compounds (VOC) are detected as a result of monitoring as provided in Attachment C, then the Wilmington Regional Office supervisor, telephone number [phone],
must be contacted immediately for further instructions regarding any additional follow-up analyses required.
If TOC concentrations greater than 10 mg/L are detected in any downgradient monitoring well, additional sampling and analysis must be conducted to identify the individual constituents comprising
this TOC concentration. If the TOC concentration as measured in the background monitor well exceeds 10 mg/L, this concentration will be taken to represent the naturally occurring TOC
concentration. Any exceedances of this naturally occurring TOC concentration in the downgradient wells shall be subject to the additional sampling and analysis as described above.
Monitoring wells shall be reported consistent with the nomenclature and location information provided in Figure 1 and this attachment.
WQ0035809 Version 1.2 Attachment C Page 1 of 1

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- FIGURE I
-;` STATESIDE HIGH -RATE INFILTRATION SYSTEM
-�-
u _ ONSiOW COUNTY
r; - if1fQ{iQ3S8fl4
x74 SITE LOCATION MAP
s

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FIGURE Z
STATESIDE HIGH—RATE INFILTRATION SYSTEM
ONSLOW COUNTY
W990
SITE DETAIL MAP

ACREFYfENT
between
A. SYDES CONSTRUCTION, NIC.
and.
OLD NORTH STATE WATER COMPANY, LLC
for the Installation, Conveyance, and Operation of the
WASTEWATER UTILTI'Y SYSTEM
to be installed to serve
STATESIDE DEVELOPMENT
Onslow County, North Carolina
11 ugust /0 ,2015

AGREEMENT
This Agreement for the installation, conveyance, and operation of the wastewater utility
system to be installed to serve Stateside Development ("Agreement') is made as of the
day of August, 2015, by and between A. SXDES CONSTRUCTION ("ASCro, a North Carolina
corporation, and AILD NORTH STATE WATER COMPANY, LLC, (ONSWC), a North
Carolina Limited Liability Corporation,, ASCI and ONSWC shall collectively be referred to as
the ".Parties".
WITNESSETH:
VnIEREAS, ASCI has requested and ONSWC has agreed that -upon completion of the
Wastewater Utility System Phase (defined below), ASCI shall convey the Wastewater Utility
System Assets (defined below) constructed during such phase to ONSWC, and ONSWC shall
accept such Wastewater Utility Assets and, thereafter, own and. operate such facilities, all in
Accordance with this Agreement.
NO'S', THEREFORE, for and.. an consideration of the premises and of the rights, powers,
and duties hereinafter set forth to be performed by each Party, ASCI. and ONSWC do mutually
agree as follows:
L DEFINITIONS
Ll. . 'Agreement" shall mean this Agreement .for the installation, conveyance, and
operation of the wastewater utility systems servirig Stateside Development (defined below),
including all exhibits and schedules hereto, if any; as amended f om time to time;
1.2. "Stateside Develgpment" shall mean the property to be developed by ASCI
known as Stateside Subdivision and consisting of approximately TBD acres along NC Highway
TBD, Onslow County, forth Carolina, which will consist of approximately TBD residences, and
the foliowing amenities` `I`BD7 _TBDand TBD, and other property awned, or to be acquired, by
ASCI located adjacent to or in near proximity to the Stateside Subdivision, herein referred to as
Extended Service Area.
1.3. "Certificate" shall mean the Certificate of Public Convenience and Necessity for
providing wastewater utility service in Stateside Development to be issued by the Commission
(defined belour)_
1. "Cer �cate Extension " shall mean an extension to the Certificate.
1.5_ "Closing" shall mean each instance upon which Wastewater Utility System
Assets (defined below), as the context requires, are transferred from ASCI to ONSWC_
1.6. "Closing Date" shall mean the date of the. applicable Closing, as the context
requires.
asci-9,&wc
2

1.7_ "Collection Sysierrm Permit" shall mean the permit for the construction and
operation of the Wastewater Collection System issued by DWQ (defined below) as Permit No.
TBD:
1.9, "Commission " shall mean the North Carolina Utilities Commission.
1.9. "County" sha.Il mean Onslow County, North Carolina.
l.lti_ "DWR" shall mean the Division of Watex Resources of the North Carolina.
Departrnent of Environment land Natural Resources.
1.1.1. "Extended Sen4ce ,area (ESA) " shall .mean any extended service areas acquired
by Developer and located outside but in the general vicinity of the Stateside Development to be
served by the Wastewater Utility System.
1.12. "CPI ", means gallons per day
1.13. "groundwater .Level Control Brains" shall mean the, gravity de -watering; drains
installed around the Infiltration Basins (defined below) to lower the water table in the
Infiltrations Basins, which Groundwater Level Control Drains shall be owned by ONSWC,
1.14. "Infiltration .Basins" shall mean the TBD acre infiltration basin with TBD gpd/ft'
loading rate and the 'TIED acre infiltration basin with a TBD gpd/ft' loading rate located at
Stateside Development, as illustrated on Exhibit 1.15.
I.15, "Mon -Discharge Permit" shall mean the permit for the construction and operation
of the Wastewater Utility= System issued by DWQ as Permit No. TBD, including all
modifications thereto.
1.1&. "Permit" or "Permits„ shall mean the Collection System Permit and/or the Non -
Discharge Permit (dellned below), as the context requires.
1.17, "Residential Equivalent Unit" or "REU" shall mean a residential unit :rate
determiried as follows- The monthly rate shall be $45.00 per REU. To determine the l~;EU for
any connection, divide the design flow of the facility estimated in GPD by :350 GPD.
1.19 "TrearedEfluerrt" shall mean the wastewater that has been treated to the point
that it meets the quality standards required. by the Non -Discharge permit,
1,18. "Wastewater Collection Svsfem" shall mean the wastewater service lines, gravity
collection lines, force mains, lift stations, arra all appurtenant equipment that will deliver
wastewater from the custorners in Stateside Development to the WWTP (defined below).
1.19. "Wastewater Plans" are all plans and specifications for the. 'wastewater Utility
System approved by the County (if required), ONSWC, and DWQ and engineered by ASC.1's
engineer.
A, 3 ONSWC

1.20. "Wastewater Seruice Line" shall mean the portion of the individual household
wastewater line for which ONSWC will assume maintenance responsibility. The Wastewater
Service Line shall include only that portion of the individual household wastewater line that
extends from the sewer cleanout at or near the property line to ONS WC's wastewater main at or
near the street. The portion of the line extending from the home to the sewer cleanout shall not
be included in the terra "Wastew-ater Service Line:
1.21. "WCSDS" or "Wastewater Collection, Storage and Disposal utility Systetrt" shall
mean the Wastewater Collection System, the Infiltration Basins, , the Groundwater Level
Control Drains, all lift stations, if any, and other facilities used in the collection, holding and
disposal of the wastewater. Attached as Exhibit 1:241:24 is a map of the Wastewater utility System.
ASCI shall instar the WCSDS. It shall be ASCI's responsibility to install the WCSDS.
1.22. "Wastewater Ccllcaioik, Storage and Disposal Utility System Assets" shall mean
the Wastewater Collection System; , Infiltration Basins, Groundwater Level Control Drains,.sites
of adequate size for the WWTP, including adequate buffers, and the Wastewater Collection
System.
1.23. "Wastewater Utility System Phase "shall mean any discrete phase of development
of the Wastewater Utility System.
1.24. "WWTP " or "Wastewater Treatment Plant" shall mean the 250,000 GPD
wastewater treatment plant to be located within Stateside Development, as illustrated on Exhibit
1.15. It shall be ONSWC's responsibility to install the WWTP.
1.25. "WWTP Easemene' shall mean that certain Wastewater Treatment .Plant Easement
Agreement, attached hereto as Exhibit 1.29, to be executed by ASCI and ONSWC, including all
exhibits and schedules thereto, if any, as amended from tune to time.
1,25. r;WWTP Site" shall mean the WWTP site of adequate size for the WWTP, Storage
Pond and Infiltration Basins, including adequate buffers- shown as "Easement. 41" on the
illustration attached -as ExJ7ibit 1.30.
2_ REPRESENTATIONS AND WARRANTIES OF ASCI
ASCI hereby represents and warrants as follows:
2.1. Organization; Goad Standing_ Power. ASCI is a corporation duly organized,
validly existing and in goad standing under the laws of the State of North Carolina and has all
the requisite power and authority to own, lease and operate its properties; to carry on its business
as now being conducted and to enter into this Agreement and Perform its obligations hereunder.
22. Authori Relative to Agreement- The execution, delivery and performance of
this Agreement by ASCI have been duly and effectively authorized by all necessary action. 'Phis
Agreement has been duly executed by ASCI and .is a valid and legally binding obligation of
ASCI enforceable in accordance with. its terms except (i) as limited by (a) applicable bankruptcy,
insolvency, reorganization, moratorium, fraudulent conveyar ce, or other laws of general
IN
ikL—
ASCE ONIS Ve

application relating to or affecting the enftrrceme€rt of creditors' rights generally; (b) laws
relating to the availability of'specific performance, injunctive relief, or other equitable remedies,
or (ii) to the extent the indemnification provisions may be limited by applicable federal or state
securities laws.
2.3. Effect of A�reemcnt. The execution, delivery and performance of this Agreement
by ASCI and the consummation of the. transactions contemplated hereby will not (i) require the
consent, approval or authorization of any person, corporation, partnership, joint venture or other
business association, or public authority other than the Commission or DWQ, (ii) violate, with or
without the giving of notice or the passage of time or bath, any .provisions of law now applicable
to ASCI or (iii) result in a violation of articles of organization or operating agreement:
REPRESENTATIONS AND WARRANTIES OF ONSWC
ONSWC hereby represents and warrants as follows_
3.1. Or ization: Good Standin - Power. ONSWC is a limited liability corporation
duly organized, validly existing and its good standing under the laws of the State of North
Carolina, and has all requisite corporate power and authority to own., lease and operate its
properties, to carry on its business as now being conducted and to eater into this Agreement and
perform its obligations. hereunder.
3.2. Authority Relative to A reement. The execution, delivery and performance of
this Agreement by ONSWC have been duly and effectively authorized by all necessary corporate
action. This Agreement has been duly executed by ONSWC and is a valid and legally binding
obligation of ONSWC enforceable in accordance with its terms except (i) as . Jim,
ted by (a)
applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance, or other
laws of general application relating to or affecting the enforcement of creditors' rights generally,
(b) lawns relating to the availability of specific performance, injunctive relief, or other equitable
remedies, or (ii) to the extent the indemnification provisions may bee.limited by applicable federal
or state securities lawns.
3.3. Effect of Agreement. The execution., delivery and performance of this Agreement
by ONSWC and the consummation of the transactions contemplated hereby will not (i) require
the consent, approval or artthorizatioo of any person, corporation, partnership, joint venture or
other business association or public authority other than the Commission or DWQ, (ii) violate,
with or without the giving of notice or the passage of time or both, any provisions of law now
applicable to ONSWC,-or (iii) result in a violation ofONSWC's charter or bylaws.
3.4 No. Claim bar Third Parties. All negotiations relative to this Agreement and the
transactions contemplated hereby have been carried out by ONSWC directly with ASCI without
the intervention of any person on behalf of ONSWC in such manner as to give rise to any valid
claim by any person against ASCI for a finder's fee, brokerage commission or similar payment.
3.5 Experience. ONSWC is a public utility company, regulated by the Commission, and is
experienced in the ownership, operation and maintenance of wastewater collection; treatiment
and disposal facilities

3.6 Accuracy of Re resentations and Warranties, No representation or warranay by
ONSWC in this Agreement, or any statement or certificate furnished or to be furnished to ASCI
pursuant hereto or in Connection with the transactions contemplated herein, contains or will
contain any untrue statement of a material fact or wilt omit to state a material fact necessary to
make the statements contained herein or therein not misleading.
4. l<NSTALLATI€]N OF WASTEWATER TREATMENT PLANT
4.1 Desigii of W WTP. ONSWC skull pay for all engineering costs ar d permit :fees
associated with the design and OWQ approval. and permitting of the WTiTp.
4.2 Construction of WWTP. :SCI; shall be obligated to prepare and grade the site
suitable for erection of the wastewater treatment plant. This includes the grading, leveling, and
placing of stone on the approved plant site. ASCI shall also corratruct the concrete slab to
ONSWC's specifications to which the plant shall be installed and the necessary yard piping, It is
anticipated that this shall include piping from the lift station to the �kVTP. ONSWC shall be
obligated to construct a Wastewater Treatment Plant capable of treating up to 250,000 GPD of
wastewater treatment capacity in such a manner to meet the effluent permit requirements
established by NC DENR in Permit TBD. ONSWC will purchase the Wastewater Treatment
Plaint and relocate it to Stateside. ASCI shall track its cost associated with the grading, leveling
and placing of stone an the plant site to include labor, equipment, and materials and provide a
written certification of ASCI's cost to ONSWC in accordance with Section 7.3 c (iii).
1t is recognized that additional plant capacity beyond the 250,000 GPD Wastewater
Treatment Plant currently plaurted may be requited to service future connections in the ESA. If
such capacity has not been constructed and, if such capacity is required in order to serve the lots
or other developments within the ESA, ONSWC or its successors, and ASCI shall execute a
separate Asset: Purchase Agreement that will set forth the obligations of each party. Said future
Asset Purchase Agreement shall stipulate the cost to ASCI for the additional plant capacity
which shall not exceed $6.87 per gallon up to a maximum capacity of 500,000 gpd.
4:3 Transfer tsf Permits. The Parties acknowledge that .DWQ has issued the Permits,
which names Weyerhaeuser Real Estate Development Company as the Permittee. Prior to
ONSWC beginning the construction of the WWTP, .ASCI, at its own expense and with the
approval of ONSWC, shall authorize Weyerhaeuser Real Estate Development Company to have
the Non -Discharge Permit modified to substitute ONSWC for Weyerhaeuser Real Estate
Development Cotxipany as the Permittee_ ONSWC, with the assistance and cooperation of ASCI
and Weyerhaeuser Ileal Estate Development Company, shall provide such information and
execute such. docurnents and instruments as may be necessary to effect such modification.
4.4 Connection pees. ONSWC shall collect a connection. fee of $3,500 per
Residential Equivalent Unit (REU) connected to the Wastewater Utility System. Such
connection fee collected, shall be a one-time fee and shall be charged to the first builder or
hoizneowner requesting service at a particular lot or unit in Stateside Development or any other
development or customer as may be approved. by ASCI.
6

4.5 Purchase Price.
(a) The Purchase Price made by ONSWC to ASCI shall be $3,500/REU. The
Purchase Price payments shall begin with the 30111 connections have been made to the
Wastewater Collection .Systein and end with when the last REtI has been connected to the
250,000 CPD Wastewater Treatment Plant. The Purchase Price Payment shall be paid by the
Buyer to the Seller on a quarterly basis based on the number of connections installed during the
previous quarter. Such payments shall be made on or about January 31, April 30, July 31, and
October 31 of each calendar year and in the month following each calendar quarter.
(b) The purchase price for connections within the ESA shall be more fully described
in a future Asset Purchase Agreement but buyer and .seller agree that subject to NCUC approval,
the connection fees shall be consistent with those. specified in Paragraph 4.4 of this Agreement
and provided ASCI bears the cast for the future expansion, that the purchase price to ASCI shall.
be no less than $4,000 pet REU..
4.6 Tariff. In consideration of the Purchase Price; ONSWC. shall request that NQUC
approve a tariff that esiablishes a monthly flat serer rate Of approximately $45-00 per REU. In
the event that, prior to Closing, the NCUC approves a tariff that establishes a flat monthly sever
rate greater than $45,00 per REU, ASCI shalt be entitled to terminate this Agreement upon
written notice to ONSWC. ONSWC agrees that for a period of 10 years after ASCI executes this
Agreement, it will not seely NCUC approval of a rate per REU greater than the rate then being
charged by Onslow Water and Sewer Authority._
4.7 Future Transfer of Unused Infiltration Pond Land. The existing DWR approved
plans consist of 500,000 CPT) of infiltration pond. disposal. The capacity of these ponds are such
that approximately 400,000 GPD of disposal capacity is contained Within three ponds and
100,000 OPD of disposal capacity is contained within two ponds, It is anticipated that ASCI will
construct the ponds in Ova phases. Phase 1 will consist of the construction of three ponds
permitted for disposal of approximately 400,000 GPD of treated effluent. Phase 2; if
constructed, would consist of two ponds permitted for disposal of approximately 100,000 GPD
treated effluent_ In the event that i# is determined that the land required for the infiltration ponds
associated with Phase 2 are not needed,. ASCI request that the land revert to ASCI for future
development. ONSWC shall not unreasonably withhold said request and upon approval, initiate
the transfer of the Iand back to ASCI. It is understood that the transfer of the land back to ASC.],
shall not constitute or create any violations of adequate buffers for the WWTP or the infiltration
ponds.Fits-they the tramf'er back to ASCI shall not constitute any violations with. federal, state, or
county laws, rules, or regulations.
INSTALLATION OF WASTEWATER COLLECTION, STORAGE AND
BISSPOS_A UTILITY SYSTEM
ASO ONSWC
7

5.1 Design of WCSWC. The Wastewater Collection, Storage and Disposal System
(WCSWC) has previously been designed and permitted. Said permit for storage and disposal
shall be transferred to ONSWC and ONS`NIC shall pay for future modification of the storage and
disposal system as may be required to serve the Stateside Development. ASCI shall pay for all
engineering cast and permits fees asassociated with the design and DWS} approval and
permitting of the Wastewater Collection System necessary to serve the Stateside Development,
including all future phases.
5.2 Construction of WCSWC_ ASCI shall be responsible for the construction and
installation of the WCSD,S: ASCI shall construct the infiltration ponds in two phases. Phase 1
shall consist of tree (3) infiltration ponds with a NC DVVR permitted disposal capacity of
approximately 400,000 CPPD. Phase 2, unless not constructed in accordance with Section 4, 6,
shall consist of two (2) infiltration ponds with a NC DWR permitted disposal capacity of
approximately 100,000 GPD and installation of these pends shall begin upon written notice from
ONSWC after wastewater flows exceed 80% of the permitted. capacity of the Phase 1 infiltration
ponds, In connection with development of each phase of Stateside Development, ASCI shall
cause to be installed, at ASCI's expense, a cormplete Wastewater Collection System to serve all
lots in that phase of Stateside Developments The entire Wastewater Collection System shall be
constructed in such a manner as to restrict eritry of groundwater and surface waters into the
Wastewater Utility System to the greatest extent practicable and, at a minimum, shall conform to
the minimum standards established by the DWQ regulations for infiltration/inflow,
5.3 Review and al2royal of WCSDS Plans. Prior to submittal to NC DWR for
approval to construct each phase of the collection system, ,ASCI shall cause its engineer to
prepare and submit to ONSWC a set of plans for the construction of the wastewater collective
system, ONSWC shall review the plans and coordinate any modifications to the plans in order to
meet ONSWC requirements. Upon approval by ONSWC of the plans, ONSWC shall execute
the NC DWR permit application and submit the permit application to NC DWR with a copy seat
to .ASCI and their engineer.
5.4 The ff,CSDS shall be installed in accordance with the approved 'Wastewater Plans..
Furthcrmore: prior to the commencement of any construction work curl the Wastewater Utility
System, ASCI shall obtain ONSWC's approval of all contractors and subcontractors who will
perform work on the installation of the Wast water Utility System, Attached as Exhibit 4.5 is a
list of all utility contractors currently approved by ONSWC for Wastewater Utility System
installations at Stateside Developirient_ ONSWC shall update this list whenever requested by
ASCI, with the list always having a minimum of three approved utility contractors. ASCI may
submit to ONSWC additional names of licensed utility contractors (including references) for
inve.stigailon and evaluation by ONSWC, ONSWC shall not unreasonably -withhold, condition
or delay approval of such additional contractors.
5.5 ASCI shall furnish to ONSWC copies of all required sm!eys, snaps, and
engineeria"Ig drawings and specifications sufficient For filing an application with the Commission
for the Certificate or Certificate Extension. Surveys, snaps and engineering drawings shall be
tQ -- 6) ..
ASC:9 -- Si�'6�' 'wr

submitted to ONSWC in both paper and electrorr c versions, with the electronic files being in a
"Awg" format,
5.6 ONSWC may periodically inspect the construction and may require correction to.
portions of .the construction that are riot :consistent with the Wastewater Plans which changes
mast he specifically authorised by the Wastewater Plans and in accordance Vvith all applicable
law.
6, APPLICATION FOR CERTIFICATE.
After the execution of this Agreement, and prior to the installation of each Wastewater
Utility System Phase, ONSWC will apply to the Commission as soon as may be practicable for a
Certificate or Certificate Extension to provide wastewater service to that phase of Stateside
Development. The Parties agree to fully cooperate and use commercially reasonable efforts to
obtain Commission issuance of the Certificate. ASCI shall furnish to ONSWC the necessary
financial information for utility plant investment including back-up invoices necessary for
ONSWC to complete the Certificate application and data.request responses to the Commission
ONSWC shall provide all bonds required by the Commission for the Certificate and each
Extension. ONSWC shall notify ASCI in writing upon the issuance of an order by the
Commission approving the Certificate or any Certificate Extension. ONSWC may terminate this
Agreement if the Cornmissiora in conjunction with is issuance of the Certificate, does not
approve both the full purchase price as rate base for ONSWC and ONSWC's applied, for rates
(including the connection fee specified in Section 4.4).
7. CONVEYANCE OF WASTEWATER UTILITY SYSTEM ASSE"T"S
7.1. Conveyance of Wastewater Utility System Assets_ At the times and on the terms
described below, ASCI shall convey to ONSWC, by easements and bill of safe, as appropriate,
the WCSD.S' assets and the WWTP Site. The WWTP site shall front upon publicly dedicated
streets to provide free and reasonable access to the WWTP site located thereon. In the event that
the WWTP site does not front upon a publicly dedicated completed street, ASCI shall convey a
perpetual 30 foot easement for ingress, egress, regress, and access to the WWTP with an all-
weather gravel access .road and also for the installation., operation., maintenance, repair and
rep] acei-hent of such utilities.
Until such time as a permanent dedicated easement can be recorded, ASCI shall provide
ONSWC with an access road and right of entry for said road.
7.2. Execute and Delivery of WWTP Easement. ASCI and ONSWC shall execute the
WWTP Easement to allow ONSWC to access and the authority to construct and install the
WWTP and ONSWC shall cause the WWTP Easement to be recorded in the Onslow County
Register of Deeds. Upon transfer of the WWTP Site to ONS,AfC via a General Warranty Deed;
said. easement shall be revoked or allowed to expire.
9

7.3_ Initial Closing for WWTP, WWTP Site, Groundwater Level Control Drains and
Infiltration. Ponds.
(a) Pre-Closirm Deliveries.
(i) ASO shall deliver to ONSWC notice of installation of the Infiltration
Basins, and the Groundwater Level Control Drains, together with engineering certification of
completion of same-,
(it)ASCI shall deliver to ONSWC title insurance for the WWTP Site,
pursuant to Section 7,8 of this Agreement;
(iii)
ONSWC shall deliver to ASCI notice of installation of the Wastewater ater Treatment Plant together
with engineering certification of completion of sarn.e.
(iv) ASCI shall deliver to ONSWC a draft General Warranty deed to the
Wastewater Treatment Plant site that includes the all five infiltration ponds with adequate buffers
and includes the Wastewater Treatment Plant with adequate buffers. ASCI shall depict a revised
plat showing the extent of the Wastewater Treatment Plant Site should ASCI execute the option.
as described in Section 4.6 for the Phase 2 Infiltration Ponds.
(b) Initial Closing Date. Upon receipt of the last item described in Section
7:3(a) of this Agreement, the parties shall mutually agree upon a date for the transfer of the
WWTP Site of adequate size for the WWTP, Groundwater Level Control Drains ; and the
Infiltration Basins including adequate: buffers, which date shall ncst be more tha�� 30 dad=s from the
date of delivery of the last item described above.
(c}
_Closing Deliveries. At the initial Closing,
(i) ASCI shall deliver Dili of sale for the Wastewater Treatment Plant
Site, Infiltration Basins, and Groundwater bevel Control Drams including adequate buffers,
(ii) The Parties shall deliver such other agreements, documents and
certificates necessary or desirable to effect such transfers.
(iii) ASCI shall deliver to ONSWC a written certification of ASCI's
instaliation cost with respect to the site work, Infiltration Basins and Groundwater Level Control
Drains.
(iv) ASCI shall cause its contractors to provide to ONSWC a one-year
warranty on components commencing on the date of issuance of the final engineering
certification.
10

(d) Initial Closing Representations, At the initial. Closing, ASCI shall
represent and warrant the following to ONSWC:
(1) The conveyance of the Groundwater Level Control Drains,
Infiltration. Basins, and the WWTP Site including adequate buffers, to be conveyed at the
Closing will not violate any ,judicial; governmental or administrative order, award., Judgment, or
decree applicable to ASCI or to such Wastewater Utility System Assets,-
(ii)
ssets;(ii) Except as described on Exhibit 5.3, there are no existing contracts or
commitments whatsoever of any type or nature in. effect with respect to the Wastewater
Treatment Plant Site,, Infiltration Basins and Groundwater Level Control Drains, to be conveyed
at _the initial Closing, other than this Agreement, and ASCI is not aware of any default by any
Party to any such agreement, and
(iii) Except as described herein, there are no liens, claims, or
encumbrances whatsoever of any type or nature upon or against the WWTP Site, Groundwater
Level Control Drains, ; Infiltration Basins, to be conveyed at the initial Closing, including but
not limited to deeds of trust, financing statements or security agreements filed under the Uniform.
Commercial Code either in the County or with the North Carolina Secretary of State.
7.4, Initial Wastewater Collection SYStem Closing for First Phase of the Developmeat.
fa) Pre -Closing Deliveries.
(i) ASCI shall deliver to ONSWC notice of installation of the initial
phase of the Wastewater Collection Systems, together with engineering certification of
completion of same;
(ii) ASCI shall deliver to ONSWC title insurance commitments for the
perpetual easements for the collection mains, force mains, collection pumping stations, and for
the collection lift stations (if an to be conveyed at the initial Closing, pursuant to Section 7.8 of
this Agreement; and
(iii) ASO's engineer shall supply ONSWC with an electronic copy of
engineering drawings of the Wastewater Utility3 System as constructed ("as-builts") and also a
hard copy of the as-builts. The electronic version of the as-builts shall be submitted to ONSWC
in "Awg' format with two spatial references to location and elevation.
(b) Initial Wastewater Collection Sysirm--ClosinF, :Date. Upon receipt of the
last items described in Section 7.3(6) of this Agreement, the Parties shall mutually agree upon a
date for the transfer of the initial phase of the Wastewater Collection System, which date shall 11ot
be more than. thirty (30) clays from the elate of delivery of the fast item described above.
(c) ClosizlDeliveries. At the initial. Closing,
r s
ASCI

Cbllcctian System,(i) ASCI shall deliver bill of sale for. the initial phase of the Wastewater
(ii) ASCI shall deliver to ONSWC the easetiients described in Section 7.5
and 7.7 of this Agreement.
(iii) The. Parties shall deliver such other agreements, documents and
certificates necessary or desirable to effect such transfers -
(i v)
ransfers_(iv) ASCI shall deliver to ONSWC a written certification of ASCI's
installation cost with respect to the init€al Phase of the Wastewater Collection System.
(v) ASCI shall cause its contractors to provide to ONSWC a one-year
warranty on all WCSDS components commencing on the date of issuance of the final engineering
certification.
(vi) ASCI shall deliver to ONSWC the. lot numbers and addresses of all
properties to be served by the Wastewater Facilities_
the Subdivision.
(vii)ASCI shall. deliver to ONSWC a.recorded plat showing each unit in
(d) Initial Clos) . ng Representations, At the initial Closing, ASCI shall
represent and warrant the following to ONSWC;
(i) The conveyance of the initial phase of the Wastewater Collection
Systern to be conveyed at the Closing will not violate any judicial, gov.ernmerltal or
administrative order, award, judgment, or decree applicable to ASCI or to such Wastewater
Utility System Assets,
(ii) Except as described on Exhibit 53. there are no existing contracts or
commitments whatsoever of.any type or nature in effect with respect to the initial phase of the
Wastewater Collection System. to be conveyed at tale initial Closing, other than th.is.Agreementr
and ASCI is not aware of any default by any Party to.any such agreement; and
(iii) Except as described herein, there are no liens, clairns, or
encumbrances whatsoever of any type or nature upon or against the initial phase of the
Wastewater Collection System to be conveyed at the initial Closing, including but not limited to
deeds of trust, financing statements or security agreements filed under the Uniform Coim-nercial.
Cade either in the County or with the North Carolina Secretary:of State.
7.5. Subse cent Wastewater Collection System, Closings.
(a) Notice. After the initial Closing, ASCI shall noti�! ONSWC ill writing
upon the completion of each of the following items with respect to a Wastewater Utility System
Phase:
VV _...__
ASCI pNS1kG -
12

(i) Installation of the components of the Wastewater Utility System
relating to a Wastewater Utility System Phase pursuant to the Wastewater Plans, including the
interconnection and necessary upgrades to the existing Wastewater Collection System, and has
provided theertgineeritng certification of completion;
(ii) Procurement of the title insurance commitments. for the perpetual
easements for the collection mains, force ma ss, collection pumping stations, and collection lift
stations pursuant to Section 7.8; and
(iii) Delivery to ONSWC of a written certification of ASCI's installation
cost with respect to such 'Wastewater Utility System Phase.
(b) Closing Date .for Subsequent Closings. Upon receipt of the last: notice
described in Section. 5.3 (a) of this Agreement, the Parties shall mutually agree ripen a. date for the
transfer of such Wastewater Utility System Assets, which date shall not be more than thirty (30}
days from the date of notice provided by ASCI and described above.
(c)
Closing Deliveries for Subsequent Closings. At each subsequentClasing:
(i) ASCI shall convey by warranty deed and bill of sale, and ONSWC
shall accept, the Wastewater Utility System Assets for such Wastewater Utility .System. Phase.
(ii) ASCI shall convey to ONSWC the easements described in Sections
5.6 and 5.7 of this Agreement.
(iii) The Parties shall deliver such other agreements, documents and
certificates necessary or desirable to effect such transfers.
(iv) ASCI shall deliver to ONSWC a written certification of AASCI's
installation cost with respect to the initial Wastewater Facility Phase_
(v) ASCI shall cause its contractoxs to provide to ONSWC a ane -year
vvarranty an all Wastewater Utility System cornponents installed dusitag such Wastewater Utility
System Phase commencing on the date of issuance of the final engineering certification_
(vi) ASCI: shall deliver to ONSWC the lot numbers and addresses of all
properties to be served by the Wastewater Facilities.
(vii) ASCI shall deliver a disk copy of Auto CAD program or other
drafting program used it the preparing the Wastewater Utility System plans for such Wastewater
Utility System. Phase_
(vid) ASCI shall deliver .to ONSWC a recorded plat showing each unit in
the Subdivision.
tu_6".A
(3At5'WC
13

(ix) At each Closing and thereafter., each Party shall execute and deliver
such other agreements, documents and certificates necessary or desirable to effect transfer of the
Wastewater Utility System Assets.
7.6. Subsea €tent Closing Representations_ At each Closing, ASCI shall represent and
warrant the following to ONSWC:
(i) The conveyance of all the Wastewater Utility .System Assets at the
Closing will not violate .any judicial, governmental or administrative order, award, judgment, or
decree applicable to ASCI or the WastewO,,r Utility System; Assets;
(ii) There are no existing contracts or commitments whatsoever of any
type or nature in effect with respect to the Wastewater Utility System Assets being transferred to
ONSWC, except this Agreement and as described. an Exhibit 5.3 and ASCI is not aware of any
default by any party to any such agreement, and
(iii). Except as described Herein, there are noliens, claims, or
encumbrances whatsoever of any type or nature upon or against any of. the Wastewater' Utility
System Assets being transferred to ONSWC, including but not limited to deeds of trust,
financing statements or security agreermnb-� filed. under the Uniform Commercial Cade either in
the County or with the North Carolina Secretary of State.
7.7. Easements for Force Mains and Collection Mains. At the time of completion of
the transfer of the Wastewater Utility System, Assets relating to each Wastewater Utility System
Phase to ONSWC, ASCI shall convey to ONSWC a perpetual easement with a total width of 20
feet centered on the main within that phase of ASCI 'for ingress, egress, regress, and access for
the installation, operation, maintenance, repair and replacement of the collection system lines,
valves and other equipment appurtenant to the Wastewater Collection System. These easements
may be conveyed to ONSWC by iestricti.ve covenants recorded in the County Register of Deeds.
T8. Easements for Wastewater Service Lines. Each Wastewater Service Line will
require a perpetual easement with a total width of 10 feet centered on the Wastewater Service
Liioe- These perpetual casements shall be for ingress, egress, regress, and access to install,
operate, repair, maintain and replace the Wastewater Service Line. ASCI, in each deed to a lot
purchaser and in the recorded restrictive covenants relating to such lot, shall reserve and cony-ey
to ONSWC these perpetual casements for the Wastewater Service Line,
7-9. Title Insurance for Easements. ASCI shall also provide ONSWC title insurance
for all perpetual easements for the WWTP Site, wastewater collection lines, force mains,
collection pumping stations and collection lift stations not within publicly dedicated rights of
way. The title insurance shall insure the perpetual easements to be free and clear of ail liens and
,encumbrances, other than the Permitted Exceptions- ASCI shall procure a title commitment on
behalf of ONSWC with respect to each site prior to the applicable Closing and shall pay the
attorney's fees incurred in connection therewith. ONSWC shall pay the title insurance premiums
is connection v;ith the issuance of an owner's policy after each such Closing.
ASO
14

8. OPERATION OF THE WASTEWATER UTILITY SYSTEM ASSETS
8, L Operation of Wastewater Utility System Assets. After each Closing, ONSWC
shall provide wastewater service tothe customers of such phase of .Stateside Development to
which the Wastewater Utility System Phase relates, as describer) in this Agreement and in
accordance with the terms of the Certificate or Certificate Extension, as the same may be
arneaded from time to time. ONSWC WILL NOT BE RESPONSIBLE FOR ACHIEVING
WATER. QUALITY LEVELS IN THE TREATED EFFLUENT BEYOND THE
REQUIREMENTS OF THE NON -DISCHARGE PEWAIT.
8.2. Landscaping and tandscape Maintenance. ASCI shall have the right to install
and maintain landscaping around the Infiltration Basin Areas , at ASCI:'s sole cost, provided that
such landscaping does not violate any applicable requirements of the Non -Discharge .Permit,
8.3.
Responsibilities for the Wastewater Service Lines. ONSWC shall operate,
maintain, repair and replace the components of the Wastewater Service Lines.
8.4, Excess Treatment Plant Capacity to Provide service to_Extended Service Area.
The Parties acknowledge that there may be excess treatment plant capacity beyond that which is
needed for Stateside Development. In such case, ONSWC may only provide wastewater
collection ar-id treatment service to customers in such Extended Service Area (ESA)With the prior
written consent of ASCI, which may be withheld in its sole discretion. Before- ONSWC agrees
to provide such service to customers in the ESA, ONSWC shall also provide ASCI the
opportunity to utilize the excess treatment and disposal capacity and to amend the definition of
Stateside Development in. this Agreement. to include additional areas to be served by the
Wastewater Utility System. Otherwise, all costs to extend service to customers in the ESA shall
be. borne by ONSWC. ONSWC shall also collect a connection fee of $3,500per REiU for each
connection to the Wastewater Collection System under this Section 8,4 which shalt be paid to
ASCI pursuant to Section 4.5 of this Agreement.
8.5. Notices to Lot Purchasers. ASCI shall include in the related restrictive covenants
language describing the purchaser's responsibilities -00th respect to the wastewater collection line
serving the purchaser's lot, in accordance with the provisions of Section 5.6 and Section 5.8(b)
of this Agreement
8,6. Gravity Collection Service Lines.
(a) Gravity services shall consist of a wastewater service tap, a 4" home
service line, and a cleanout at the easement or right of way line_ ASCI shall use commercially
reasonable efforts to ensure that the employees, contractors, and subcontractors under its control
do not brew , damage or bury these cleanouts_
(b) It shall be the responsibility of the owner of each dwelling unit with a
gravity service lime to maintain such service line from their residence to the cleanout at or r3ear
the property line. If the cleanout is not at or near- the property line, then the owner of that
. __ �j
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15

dwelling shall_ be resporasible for maintenance of the gravity collection service line up to the
property line.
9. GENERAL PROVISIONS
9.1. Execution of Future -Agreements. After the execration of this Agr"Ment, all
Stateside Development agreements entered into by ASCI with respect to development at
Stateside Development shall be consistent with the terms of this Agreement to the extent
addressing the provision of wastewater service to Stateside Development,
9.21 Cooperation for All Necessary Government Approvals. ASCI and .ONSWC agree
to cooperate in obtaining all necessary permits including the PeEmits and issuarice of the
Certificate and/or Certificate Extensions by the Commission to :ONSWC. ONSWC, at
ONSWC's cost, shall. file for all Certificates and Certificate Extensions_
93. Representations, Warranties Covenahts and Agreements Survive Closing. All
representations and warranties of ASCI arid.ONSWC hereunder shall survive each .Closing.
Further, any covenant or agreement 'herein which contemplates performance after the time of any
Closing shall not be deemed to be merged into or waived by the instruments delivered in
connection with such :Closing, but shall expressly survive such Closing and be binding upon the
Parties obligated thereby.
9.4. Binding upon Successors and_Assi ns This Agreement shall be bind' upon
and shall inure to the benefit of ASCI and ONSWC; and the successors and permitted assigns of
each,
9.5. No Third Pasty Beneficiary Rights. Nothing expressed or referred to in this
Agreement will be construed to give any person other than the Parties any legal or equitable
right, remedy or claim under or with respect to this Agreement or any provision of this
Agreement, except such rights as shall inure to a permitted successor or assignee pursua€at to
Section 9.4 of this Aareernent.
9.6. Indej2endent Contractors. The Parties are and shall be independent contractors to
one another, diad nothing herein shall be deemed to cause this Agreement to create an agency,
partnership, or' oint venture between the Parties.
9.7_ Counterparts. This Agreement may be executed in one or more counterpart
signature pages, each: of which (including counterpart signature pages transmitted by facsimile or
Cather electronic means) will be deemed to be aro original of this Agreement and all of which,
whin taken. together, will be deemed to constitute one and the same agreement.
9.8. Headings. The headings of particular provisions of this Agreement are inserted
for convenience only and shall not be construed as a part of this Agreement or serve as a
limitation or expansion on the scope of any term or provision of this Agreement -
JA — 4.-1
Ascv
a

9.9- Enforcement of AgreernentI Each Party acknowledges and agrees that the other
Party would be irreparably damaged if any of the, provisions of this Agreement are not performed
in accordance with their specific terms and that any breach of this Agreement by a Party could
not be adequately compensated in all cases by monetary damages alone. Accordingly, in.
addition. to any other right or remedy to which a Party may be entitled, at law or in equity, it shall
be entitled to enforce any provision of this Agreement by a decree of specific performance and to
temporary, preliminary and permanent injunctive relief to prevent any breach or threatened
breach of any of tete provisions of this Agreement, without posting any bond or other
undertaking.
9.1.0. Waiver. No waivers of, or exceptions to, any term, condition or provision of this
Agreement, in any instance or instances, shall be deemed to be, or construed as, a further or
continuing waiver of any such term, condition or provision.
9,11. Entire Agreement. This writing and the documents referred to herein embody the
entire agreement and .understanding between the Parties and there are. no Cather agreements or
understandings, oral or Nvdtten, with reference to the subject matter hereof that are rant merged
herein and superseded hereby.
9.12. Modifications in Writing. This Agreement shall .not he modified, amended, or
changed in any respect except in writing, duly signed by the Parties and each Party hereby
waives any right to amend this Agreement in any other way.
9.13. Consent to funsdiction. The Parties agree that the Superior Court of Onslow
County, North Carolina andfor federal courts of the Eastern District of North Carolina shall have
exclusive jurisdiction over this Agreement and any controversies arising out of relating to, or
referring to this Agreement, the formation of this Agreement, and actions undertaken by the
Parties hereto as a result of this Agreement, whether such controversies sound in tort law,
contract law or otherwise. Each of the Parties Hereto expressly and irrevocably consents to the
personal jurisdiction of such state and federal courts, agrees to accept service of process by mail;
and expressly waives anyjurisdictional or venue defenses otherwise available.
9-14- Governing Lave, This Agreement shall be governed by the internal substantive
laws of the State of Dearth Carolina, without regard to such state's conflict of law or choice .of
law rules.
9.15_ Notices. All notices and other cominunications required or permitted hereunder
shall be in writing and shall be sent either (i) personally by hand delivery, (ii) by registered or
certified United States first-class mail, postage prepaid, return receipt requested, (iii) by
nationally recognized overnight courier, or (N) by facsimile addressed to the address or facsimile
number indicated. below (or at such other address or facsimile number as such Party or permitted
assignee shall have furnished to the other Warty hereto in writing). All such notices and other
written communications shall be effective on the slate of delivery -
If to ASCI, such notice shall be addressed toe
17

A. Sydes Construction, Inc.
107 Carolina Plantations Blvd.
Jacksonville, NC 28540
Tf to ONSWC, such notice shalt be addressed to:
O'NSWC North Carolina; Inc.
16201 Chalk Road
Wake Forest, NC 27587
Attn: Michael Myers, Member
Copy to: Karen Kemerait, Esq.
Styers & Kemerait
1101 Haynes Street, Suite 101
Raleigh, NC 27644
Integra Water, LLC
John L. McDonald, Manager
600 University Park Place, Suite 275
Birmitighain., A.L')5209
(Signature page follows]
S

[Signature Page to Agreement
fN WITNESS WHEREOF, the Parties have caused this Agreement to be duty executed in
their respective names, all by authority duly given; the stay and year first above written,
A: $YDES CONSTRUCTION, [NC.
STATE OF NORTH CAROLINA
COUNTY OF ONSLOW
I certify that the following person personally appeared before me this day,
aclnow diva to nye thlthelsigned the foregoing document in fl -ie capacity indicated thereon:
Date:
My Commission Expires
C.�tA
4
ASCI
19

OLD NORTH STATE WATER COMPANY, LLC.
By,
Name.- , -,V,
7 __111�
STATE OF NORTH CAROLINA
COUNTY OF
_LL
I certify that the following person personally appeared before me this day,
to me that he signed the foregoing document in the capacity indicated thereon. -
Date. I) �6' � 23LE-
'7-- -
My Commission Exp�res V--C-fb '.�
N*o, ublic.
N