WQ0003271_Final Permit_20181214

ROY COOPER
caar
MICHAiEL S. REGAN
LINDA C LPEPPER
armor
NORTH CAROLINA
Environmental Quality
December 14, 2018
J. BRYCE MENDENHALL — VICE PRESIDENT
CAROLINA WATER SERVICE, INC. OF NORTH CAROLINA
POST OFFICE Box 240908
CHARLOTTE, NORTH CAROLINA 28224-0908
Subject: Permit No. WQ0003271
Hestron Park WWTP
High -Rate Infiltration System
Carteret County
Dear Mr. Mendenhall:
In accordance with your permit renewal request received October 25, 2018, we are forwarding
herewith Permit No. WQ0003271 dated December 14, 2018, to Carolina Water Service, Inc. of North
Carolina for the continued operation of the subject wastewater treatment and high -rate infiltration facilities.
Please note that this renewed permit shall become effective on March 1, 2019 (i.e., the day after the
expiration date of the existing permit).
This permit shall be effective from March 1, 2019 through December 31, 2023, shall void Permit
No. WQ0003271 issued October 3, 2013, and shall be subject to the conditions and limitations therein. The
Permittee shall submit a renewal application no later than July 4, 2023.
Please pay attention to the monitoring requirements listed 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.
The Division has removed the following permit conditions since the last permit issuance dated
October 3, 2013:
Old Condition I.2. and 11.6. — These conditions have been removed because the subject facility
is no longer required to meet these requirements in 15A NCAC 02H .0400.
➢ Old Conditions I11.10.,111.11., II1.12., and I11.13. —These conditions have been removed.
➢ Old Condition VI.2. — This condition has been removed because the subject permit is not
voidable.
sadE�
North Carolina Department of Environmental Quality I Division of Water Resources I Non -Discharge Branch
512 North Salisbury Street 1161.7 Mail Service Center I Raleigh, North Carolina 27699-1617
919.707.3654

Mr. J. Bryce Mendenhall
December 14, 2018
Page 2 of 2
The following permit conditions and attachments are new or modified since the last permit
issuance dated October 3, 2013:
➢ Condition II.4. — Permittee must maintain the wastewater collection facilities at all times.
➢ Condition II.12. — This condition has been modified to include all applicable setbacks at the
time of original permit issuance.
➢ Condition III.5. — Infiltration equipment shall be tested and calibrated once per cycle.
➢ Condition III.11. — This condition requires that a protective vegetative cover be established and
maintained on all berms, pipe runs, erosion control areas, surface water diversions, and earthen
embankments
➢ Condition III.12. — Metering equipment must be calibrated annually.
➢ Condition III.14. — This condition requires that the infiltration areas be cleaned at least once
per permit cycle to remove deposited materials that may impede the infiltration process.
➢ Condition IV.5.c. and d. — Permittee must record the site infiltrated and the length of time
infiltrated.
➢ Condition IV.8.b. — Permittee must record the dates of infiltration equipment calibration
➢ Condition VI.3. — This condition states that unless specifically requested and approved in the
permit, there are no variances to administrative codes or general statutes governing the
construction or operation of the permitted facilities.
➢ Condition VI.10. — This permit shall not be renewed if the required annual fee hasn't been paid.
➢ Attachment A — Added Kjeldahl Nitrogen, Total Nitrogen, and Total Phosphorus parameters
to effluent monitoring.
➢ Attachment C — Added Total Phosphorus parameter to groundwater monitoring.
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. Otherwise, this permit shall be final and binding.
If you need additional information concerning this permit, please contact Erick Saunders at (919)
707-3659 or Qrickson.saundersCncdenr.gov.
Sincerely,
Z,e,4 �0-
Lmda Culpepper, Director
6 Division of Water Resources
cc: Carteret County Health Department (Electronic Copy)
Wilmington Regional Office, Water Quality Regional Operations Section (Electronic Copy)
Laserfiche File (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
Carolina Water Service, Inc. of North Carolina
Carteret County
FOR THE
continued operation of a 67,000 gallon per day (GPD) wastewater collection, treatment, and high -rate
infiltration facility consisting of:
approximately 1,065 linear feet (LF) of 8-inch gravity sewer; approximately 2,300 LF of 4-inch force main;
a bar screen; a flow splitter box; a dual path treatment plant each containing a 50,000 gallon aeration basin
and an 8,400 gallon clarifier; two 402 cubic foot per minute (CFM) blowers; a 7,500 gallon aerated sludge
holding tank; a 2,800 gallon chlorine contact tank; two tertiary filters each six feet in diameter; a 4,935
gallon mudwell; a 4,241 gallon clear well; a 0.36 acre high -rate infiltration area with two 7,854 square foot
(ft') rotary distributors; a 100 kilowatt (kW) automatically self -activated standby power unit; and all
associated piping, valves, controls, and appurtenances
to serve the Hestron Park WWTP, with no discharge of wastes to surface waters, pursuant to the application
received October 25, 2018, and in conformity with the Division -approved plans and specifications
considered a part of this permit.
This permit shall be effective from March 1, 2019 through December 31, 2023, shall void Permit No.
WQ0003271 issued October 3, 2013, and shall be subject to the following conditions and limitations:
I. SCHEDULES
1. The Permittee shall request renewal of this permit on Division -approved forms no later than July 4,
2023. [15A NCAC 02T .0105(b), 02T .0109]
H. PERFORMANCE STANDARDS
The Permittee shall maintain and operate the subject non -discharge facilities 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 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 disposal facilities. [ 15A NCAC 02T
.0108(b)(1)(A)]
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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 02T .0108(b)(1)(A)]
3. Groundwater monitoring wells 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]
4. The wastewater collection facilities shall be properly maintained and operated at all times. The
following performance criteria shall be met:
a. The collection system shall be effectively maintained and operated at all times to prevent discharge
to land or surface waters, and to prevent contravention of groundwater or surface water standards.
b. A map of the collection system shall be developed and maintained.
c. An operation and maintenance plan shall be developed, implemented, and maintained.
d. Pump stations not connected to a telemetry system shall be inspected every day (i.e., 365 days per
year) unless otherwise approved. Pump stations connected to a telemetry system shall be inspected
at least once per week.
e. High -priority sewers shall be inspected at least once every six months.
f. A general observation of the entire collection system shall be conducted at least once per year.
g. Overflows and bypasses shall be reported to the Wilmington Regional Office in accordance with
15A NCAC 02B .0506(a), and public notice shall be provided as required per G.S.143-215.1C.
h. A grease control program shall be developed, implemented, and maintained.
i. Right-of-ways and easements shall be maintained.
j. Inspection and maintenance records shall be maintained for a period of at least three years, except
for the map, which shall be maintained for the life of the system.
[15A NCAC 02T .0403(a)]
5. Effluent quality shall not exceed the limitations specified in Attachment A. [15A NCAC 02T
.0108(b)(1)(A)]
6. Application rates, whether hydraulic, nutrient, or other pollutant, shall not exceed those specified in
AttachmentB. [15ANCAC 02T .0108(b)(1)(A)]
High -rate infiltration sites permitted on or after December 30, 1983 have a compliance boundary that
is either 250 feet from the infiltration area, or 50 feet within the property boundary, whichever is closest
to the infiltration area. Any exceedance of groundwater standards at or beyond the compliance
boundary shall require corrective action. Division -approved relocation of the compliance boundary
shall be noted in Attachment B. Multiple contiguous properties under common ownership and
permitted for use as a disposal system shall be treated as a single property with regard to determination
of a compliance boundary. [15A NCAC 02L .0106(d)(2), 02L .0107(b), 02T .0105(h), G.S. 143-
215.1(i), G.S. 143-215.1(k)]
8. The review boundary is midway between the compliance boundary and the infiltration area. Any
exceedance of groundwater standards at or beyond the review boundary shall require preventative
action. [ 15A NCAC 02L.0106(d)(1), 02L .0108]
9. 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 (i.e., parcel subdivision). [ 15A NCAC
02L .0107(c)]
10. 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]
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11. 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 Carteret
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.
[I 5A NCAC 02L .0107(f)]
12. The facilities herein were permitted per the following setbacks:
a. The infiltration sites were originally permitted November 22, 1985 (Permit No. 12482). The
setbacks for infiltration sites originally permitted or modified from September 13, 1981 to
September 30, 1987 are as follows (all distances in feet):
i.
Surface waters classified SA:
100
ii.
Surface waters classified non -SA:
50
iii.
Drainage ditches:
25
iv.
Each impounded public surface water supply:
500
v.
Each public shallow ground water supply (less than 50 feet deep):
500
vi.
Each private ground water supply:
100
[15A NCAC 02H .0404(g)(4), 02H .0404(g)(5)]
b. The treatment units were originally permitted November 22, 1985 (Permit No. 12482). The
setbacks for treatment units originally permitted or modified from September 13, 1981 to
September 30, 1987 are as follows (all distances in feet):
i. Each on -property residential unit if the unit is to be sold:
ii. Each property line:
10'
102
' Habitable residences or places of assembly under separate ownership constructed after the
facilities herein were originally permitted or subsequently modified are exempt from this
setback.
s Setbacks to property lines are not applicable when the Permittee, or the entity from which the
Permittee is leasing, owns both parcels separated by the property line.
[15A NCAC 02H .0404(g)(2)]
OPERATION AND MAINTENANCE REQUIREMENTS
1. The Permittee shall operate and maintain the subject facilities as a non -discharge system. [15A NCAC
02T .0700]
2. The Permittee shall maintain an Operation and Maintenance Plan, which shall include operational
functions, maintenance schedules, safety measures, and a spill response plan. [15A NCAC 02T
.0707(a)]
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3. Upon the Water Pollution Control System Operators Certification Commission's (WPCSOCC)
classification of the subject non -discharge facilities, the Permittee shall designate and employ a certified
operator in responsible charge (ORC), and one or more certified operators as back-up ORCs. The ORC
or their back-up shall operate and visit the facilities as required by the WPCSOCC. [15A NCAC 02T
.0117]
4. The Permittee shall take measures to prevent effluent ponding in or runoff from the infiltration sites
listed in Attachment B. [15A NCAC 02T .0707(c)]
5. Infiltration equipment shall be tested and calibrated once per permit cycle. [ 15A NCAC 02T .0707(d)]
6. Only treated effluent from the Hestron Park WWTP shall be infiltrated on the sites listed in Attachment
B. [15A NCAC 02T .0701]
7. The Permittee shall not allow vehicles or heavy machinery on the infiltration area, except during
equipment installation or maintenance activities. [15A NCAC 02T .0707(e)]
8. The Permittee shall prohibit public access to the wastewater treatment, storage, and infiltration
facilities. [15ANCACO2T.0705(p)]
9. The Permittee shall dispose or utilize generated residuals in a Division -approved manner. [15A NCAC
02T .0708, 02T .I 100].
10. The Permittee shall not divert or bypass untreated or partially treated wastewater from the subject
facilities. [15A NCAC 02T .0705(i)]
11. A protective vegetative cover shall be established and maintained on all berms, pipe runs, erosion
control areas, surface water diversions, and earthen embankments (i.e., outside toe of embankment to
maximum allowable temporary storage elevation on the inside of the embankment). Trees, shrubs, and
other woody vegetation shall not be allowed to grow on the earthen dikes or embankments. Earthen
embankments shall be kept mowed or otherwise controlled and accessible. [15A NCAC 02T .0707(g)]
12. Metering equipment shall be tested and calibrated annually. [ 15A NCAC 02T .0707(d)]
13. An automatically activated standby power source capable of powering all essential treatment units shall
be on site and operational at all times. If a generator is employed as an alternate power supply, it shall
be tested weekly by interrupting the primary power source. [15A NCAC 02T .0705(k)]
14. The infiltration areas shall be cleaned at least once per permit cycle to remove deposited materials that
may impede the infiltration process. Cleaning records shall be maintained at the facility for 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 .0707(h)]
IV. MONITORING AND REPORTING REQUIREMENTS
1. The Permittee shall conduct and report any Division required monitoring necessary to evaluate this
facility's impact on groundwater and surface water. [ 15A NCAC 02T .0108(c)]
2. A Division -certified laboratory shall conduct all analyses for the required effluent, groundwater, and
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. Facilities with a permitted flow less than 10,000 GPD may estimate their
flow from water usage records provided the water source is metered. [15A NCAC 02T .0105(k), 02T
.0108(c)]
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4. The Permittee shall monitor the treated effluent at the frequencies and locations for the parameters
specified in Attachment A. [15A NCAC 02T .0108(c)]
5. The Permittee shall maintain records tracking the amount of effluent infiltrated. 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. Length of time site is infiltrated;
e. Loading rates to each infiltration site listed in Attachment B; and
f. Weather conditions.
[15A NCAC 02T .0108(c)]
Three copies of all monitoring data (as specified in Conditions IV.3. and IV.4.) on Form NDMR for
each PPI and three copies of all operation and disposal records (as specified in Condition IV.5.) 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 .0105(1)]
7. The Permittee shall maintain a record of all residuals removed from this facility. This record shall be
maintained for five years, and shall be made available to the Division upon request. 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.
[15A NCAC 02T .0708(b)]
8. A maintenance log shall be kept at this facility. This log shall be maintained for five years, and shall
be made available to the Division upon request. This log shall include:
a. Date of flow measurement device calibration;
b. Date of infiltration equipment calibration;
c. Date and results of power interruption testing on alternate power supply;
d. Visual observations of the plant and plant site; and
e. Record of preventative maintenance (e.g., changing of equipment, adjustments, testing, inspections
and cleanings, etc.).
[15A NCAC 02T .0707(i)]
9. Monitoring wells MW-1, MW-2, MW-3, MW-4, and NW-5 shall be sampled 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 1. [15A NCAC 02T .0105(m)]
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10. 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)]
11. Noncompliance Notification:
The Permittee shall report to the Wilmington Regional Office, telephone number [phone],
within 24 hours of first knowledge 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.) rendering the facility incapable of
adequate wastewater treatment.
c. Any facility failure resulting in a discharge to surface waters.
d. Any time self -monitoring indicates the facility has gone out of compliance with its permit
limitations.
e. Ponding in or runoff from the infiltration sites.
Emergencies requiring reporting outside normal business hours shall call the Division's Emergency
Response personnel at telephone number [phone], [phone], or [phone]. All
noncompliance notifications shall file a written report to the Wilmington Regional Office within five
days of first knowledge of the occurrence, and this report shall outline the actions proposed or taken to
ensure the problem does not recur. [15A NCAC 02T .0108(b)(1)(A)]
V. INSPECTIONS
1. The Permittee shall perform inspections and maintenance to ensure proper operation of the wastewater
treatment and infiltration facilities. [15A NCAC 02T .07070)]
2. The Permittee shall inspect the wastewater treatment and infiltration facilities to prevent malfunctions,
facility deterioration, and operator errors that may result in discharges of wastes to the environment,
threats to human health, or public nuisances. The Permittee shall maintain an inspection log that
includes the date and time of inspection, observations made, and 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
.0707(i), 02T .07070)]
3. Division authorized representatives may, upon presentation of credentials, enter and inspect any
property, premises, or place related to the wastewater treatment and infiltration facilities permitted
herein at any reasonable time for determining compliance with this permit. Division authorized
representatives may inspect or copy records maintained under the terms and conditions of this permit,
and may collect groundwater, surface water, or leachate samples. [G.S. 143-215.3(a)(2)]
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VI. GENERAL CONDITIONS
1. Failure to comply with the conditions and limitations contained herein may subject the Permittee to a
Division enforcement action. [G.S. 143-215.6A, 143-215.6B, 143-215.6C]
2. This permit is effective only with respect to the nature and volume of wastes described in the permit
application, and Division -approved plans and specifications. [G.S. 143-215.1(d)]
3. Unless specifically requested and approved in this permit, there are no variances to administrative codes
or general statutes governing the construction or operation of the facilities permitted herein. [15A
NCAC 02T .0105(n)]
4. The issuance of this permit does not exempt the Permittee from complying with all statutes, rules,
regulations, or ordinances that other jurisdictional government agencies (e.g., local, state, and federal)
may require. [15A NCAC 02T .0105(c)(6)]
5. If the permitted facilities change ownership, or the Permittee changes their name, the Permittee shall
submit a permit modification request on Division -approved forms. The Permittee shall comply with
all terms and conditions of this permit until the permit is transferred to the successor -owner. [G.S. 143-
215.1(d3)]
6. The Permittee shall retain a set of Division -approved plans and specifications for the life of the facilities
permitted herein. [15A NCAC 02T .0105(o)]
7. The Permittee shall maintain this permit until the proper closure of all facilities permitted herein; or
until the facilities permitted herein are permitted by another authority. [15A NCAC 02T .01050)]
8. This permit is subject to revocation or modification upon 60-day notice from the Division Director, in
whole or part for:
a. violation of any terms or conditions of this permit or Administrative Code Title 15A Subchapter
02T;
b. obtaining a permit by misrepresentation or failure to disclose all relevant facts;
c. the Permittee's refusal to allow authorized Department employees upon presentation of credentials:
i. to enter the Permittee's premises where a system is located or where any records are required
to be kept;
ii. to have access to any permit required documents and records;
iii. to inspect any monitoring equipment or method as required in this permit; or
iv. to sample any pollutants;
d. the Permittee's failure to pay the annual fee for administering and compliance monitoring; or
e. a Division determination that the conditions of this permit are in conflict with North Carolina
Administrative Code or General Statutes.
[15A NCAC 02T .0110]
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9. Unless the Division Director grants a variance, expansion of the facilities permitted herein shall not
occur if any of the following apply:
a. The Permittee or any parent, subsidiary, or other affiliate of the Permittee has been convicted of
environmental crimes under G.S. 143-215.6B, or under Federal law that would otherwise be
prosecuted under G.S. 143-215.6B, and all appeals of this conviction have been abandoned or
exhausted.
b. The Permittee or any parent, subsidiary, or other affiliate of the Permittee has previously abandoned
a wastewater treatment facility without properly closing the facility.
c. The Permittee or any parent, subsidiary, or other affiliate of the Permittee has not paid a civil
penalty, and all appeals of this penalty have been abandoned or exhausted.
d. The Permittee or any parent, subsidiary, or other affiliate of the Permittee is currently not compliant
with any compliance schedule in a permit, settlement agreement, or order.
e. The Permittee or any parent, subsidiary, or other affiliate of the Permittee has not paid an annual
fee.
[15A NCAC 02T .0120(b), 02T .0120(d)]
10. This permit shall not be renewed if the Permittee or any affiliation has not paid the required annual fee.
[15A NCAC 02T .0120(c)]
Permit issued this the 14a' day of December 2018
NORTH CAROLINA ENVIRONMENTAL MANAGEMENT COMMISSION
964!���'a �::� .
nda Culpepper, Director
Division of Water Resources cl
By Authority of the Environmental Management Commission
Permit Number WQ0003271
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2

AGRRIRH r Foil ►S l� ►5)?RY1.Cr-.
,v).,z
This Agreement is entered into this v.LA day of July, 1986 by and
between ilesiron Corporation, Inc„ a North C-oliaa corporallon (hereinafter
referred io as 'developer'), and Carolina Water Service, Inc. of North Carolina,
(hereinafter referred to as 'Utility').
IITNES,SIET1111
WHEREAS, Developer is the owner of certain seal estate in Carteret
County, North Carolina encompassing approximately 142 acres of land located
west of Morehead City; known as liestron Park; and more fully described on a
map prepared by James L. Powell which Is attached hereto as Exhibit 1, and
WHEREAS, Developer is In the process of developing the real estate into a
residential development and a commercial park which will contain a shopping
mall and numerous other commercial establishments when completed. The
Term "Development" as used in this Agreement refers to all of the above -
described land, and
WHEREAS, Utility Is a North Carolina public utility engaged in the
business of furnishing water and sewer service to the public in various areas
throughout North Carolina. 'rho Utility desires to have constructed and
installed, and the Developer desires to construct and install a sanitary sewer
system in tale Development subject to the terms and conditions of this
Agfeamenl.
WHEREFORE, In consideration of the mutual covenants hereinafter set
forth, ilia parties hereto agree as follows:
ARTICLE ,-I-
Renresenletlons end Warran, ntli s of Developer
1. The Developer represools and warrants:
a. That it owns the real estate in the Development. That said real estate
Is either owned by Charles Hester or lieslron Corporation. Inc.
b. That it will cooperate fully with the Utility in any and all
applications or petitions to public authorities deemed necessary or
desirable by the Utility in connection with ilia construction and
installation of ti►e sewer system contemplated by this Agreement
for so long as pelitlnns are in conformity with this Agreement.
la

C. That it will cooperate tally will, the Utility in leasing to the Utility
Ian area of land as shown on Exhibit 2 on which will be placed a
sawsge treatment disposal plant (perelnafesr referred to as S.T.P.
Land).
d. That it will convey to the Utility or provide by recorded subdivision
plats such easements or rights or way as the Utility may reasonably
require for the Utility's performaned Of its obligalions under Article
11 of this Agreement.
-HHTICLE 1f
011illglallons nr 111111110 and 1sese of inclillles
1. Within 20 days following the execution of this Agreement, the Utility will
flit a petition with tltd North Carolina Utilities Commission ('the
Commission');
a. requesting 111e issuance by the Commission of a Certificate of Public
Convenience and Necessity authorizing the, construction, operation
and maintenance of a public sewage collection and treatment system
to provide sewer service to file public, in the Development, and
IS. requesting an order of ilia Commission authorizing performance by
the Utility of this Agreement and authorizing rates, rules,
regulations and terms and conditions of service for sewer service in
the Development. The Utility will also seek any necessary approvals
for the construction, installaiion and Operation of a sewage
treatment plant and collection system in fist Development from all
necessary public authorifies.
2. At the request of Developer, Utility will perform certain management
services on behalf of Developer. Including but not limited to, the
following:
A. Provide consulting services to Developer concerning facilities type,
quality, size and location if anti as requested by Developer.
IS. Coordinate engineering plans with representatives of Developer,
Developer's engineers, the North Carolina Department of Human
Resources and other applicable regulatory bodies.
C. Inspect the construction and installation of all the sewer facilities to
be installed to thti 0evelopincn,

M
d. Attend public hearings and meetings with varlous regulatory
ASCOC14S and repretealatives of Developer.
e. Assiat in secaring necessary easements and rights of way for sewer
facilities installation,
3. Developer shall login The lower facilities installed within the
Development. and the S.T.P. Land to Utility for a period of five years from
the date of this Agreement. Upon the expiration of sold five year lease
period. Utility shall be given ilia option to purchase ilia sewer facilities
and equipment at the price and under Ilse conditions set forth in Article
Ill herein.
9. Utility shall make the following payments to Developer for the lease of
ilia sewer facilities and equipment {the 'Pacllities' as hereinafter
defined) and ilia S.T.F. Land for Ilia five year lease term as follows:
a. An initial tease payment in the amount of $10,000 at such time as the
sewage treatment plant is completed and operational and providing
service thereby.
b. Tour additional annual lease payments in ilia amount of S1,300 per
year, commencing July 1, 1987 and terminating with the final lease
payment due on July I, 1991.
RRYIEtt III
0atInn to Purcheae fecilllle.g
Upon the expiration of the five year lease. Utility shall be given an option, for
an additional six month period, to purchase the Facilities within the
Development for the following consideration:
A. Current and deferred purchase payments in the amount of $100 for
cacti residential at conin►ercial cusinmer equivalent ('Cusu►u)t:r
Equivalent") attaching to the sewer system in ilia Development,
commencing with the 1S0111 Cttstomet Equivalent and continuing
throughout the Development. Far the purposes of this agreement a
Customer Equivalent shall be calculated based upon a susialned
average water consumption of sewage effluent discharge of 350
gallons per day. 'rhe current portion of the purchase payment shall
be based upon ilia Customer Equivaltt►is connected to the Facilities
on the date of the purchase nptiun excersixe by Utility

b. Contingent purchase payments will be made by Utility to Developer
semi-aanustiy, hosed upon the tower Customer Equivalents
connected within the Development during the preceding six month
period.
C. All of the Facilities Installed by Developer pursuant to this
Agreement %hail become the property of the Utility, free and clear
of all liens and encumbrances, upon the exercise of this purchase
option. Developer shalt execute all conveyances, licenses and other
documents reasonably requested by Utility as necessary or desirable
in its opinion to Insure its ownership of, ready access to, and
operation and maintenance of the Facilities. Developer shall
furnish Utility with lien waivers in a form satisfactory to Utility's
counsel from Developer and from all suppliers, subcontractors and
all others who ftrruish labor, equipment, materials, rentals, or who
perform any services In connection wish construction hereunder.
Developer &&roes to provide to Utility documentary evidence. In
form satisfactory to Utility. sufficient to establish the original cost
of the Facilities. Utility shall have at all times all right, title and
Interest in and to the Fucilisles as set forth In this Agreement.
ONicia . 10
toes Tau -On ..or_ _Connection Lens_
Utility hereby a&fees to reimburse Developer for any and all tap•in or
connection fees received from customers connecting to the sewer system In the
Development and taking service thereby. No sewer tap -on or connection fee, �J „�y�
tF�^" f1`1_
will be charged by Utility unless specifically requested by Developer in writing. -g .
As Developer develops its properly for either lease or sale, Developer reserves
the right to negotitate directly with said Purchaser ur proposed Lessee as to
What tap -on fee Developer will charge In PufchaSef to tie into the existing
sewage system.
IIRTIrt_E U
It is the intention of the parties hotel* that lire S.T.P. Land will be leased to
Utility during the first five years of ibis Agreement purseaat to the leans and
conditions. of Article 11 herein. to the evrnt Uttl,tr elects Its eectrtst its npiuirt
to purchase the Facilities at the esptra<tion or said five year lesse perlod,
4

Developer hereby agrees to extend the lease oa the S.T.P. Land far an additional
93 yeafs, for a logo* considerailan of one huodrad dnttr• ($Igo) per year.
In the event that at any time during the period or the S.T.P. Land lease, Utility
connacis its $ewes* collection facilities to it municipal or county sewage system
and accordingly Is able to abandon or discontinue use of its sewage treatment
facilities, it is understood and agreed by the panies hereto that the S.T.P. Land
lease will terminate within slx months of the date of such connection. At such
time. Utility will have no further rights to utilize such S.T.F. Land antess
otherwise permitted or agreed to by Developer.
A RT L E.IL.._.II I
Lonstruction and InstaNetlett _ at _ Fatllliltss BU ttapploner.
1. Developer will install, or will have installed by others, the Facilities
tbtoughout the Development as specified and described in the
engineering drawing prepared by Stroud Engineering Company and
attached hereto as Exhibit 2. Such Facilities, when installed, will meet or
exceed the engineering design specifications and capacity requirements
contained In ]Exhibit 2. All plans, specifications and construction shall be
in accordance wtih applicable standards, requirements, rules and
regulations and ageacies of the States of North Carolina and Cartaret
County.
2. The Facilities will include, but are not limited tut, all necessary sewage
treatment and collection facilities, including a 100.000 gallon -per -day
Sewage treatment plant with tertiary tr Malta and rotary distributors,
mains, service lines, lift stations, and all also reasonably required to
provide adequate sanitary sewage Service to customers connecting to the
sewage system within the Development. The sewage treaitttent plant will
meet all treatment and effluent limits and criteria as required by the
North Carolina Department of human Resources and other Federal, state
and local authorities.
3. All materials used Shall be new, first-class, and suitable far the uses made
thereof.
4. Developer guarantees all construction, materials, workmanship, and the
trouble -free operation of the Facilities far MA months after comPletmn nt
each phase or section. acceptance by Utility of each new development
5

added to said system, That further, Utility will not allow any other
Individuals to tie into said system without the express written, permission
of Developer.
i. Developer shall repair at cause In be repaired, promptly at no cost to
Utility, all damage to Utllity's facilities caused by construction operations
until sit construction In the Development by or on behalf of Developer or
Its affiliates has been completed, only for those areas which have been
connected to said system, less then six months from their dale of hook up,
i.e. any developlaent or equipment hooked up to said system or connected
with said system which has been there for more titan six months, Repair
and maintenance of same shall be strictly with Utility.
6. Developer shall save and hold Utility harmless from and against all suits
and claims that may he loused upon any injury tp person or prnpetty
which may occur In the course of the performance of the construction of
the Facilities by Developer, or anyone acting on Developer's behalf or
under Developer's supervision and control; however, after operation is
assumed by Utility, then Utility shall bear the obligation to hold
Developer harmless from and against all suits or claims based upon an
injury to any person or property that may occur in llte course of the
performance of the operation of said sewage Irealment facility which are
under the direct control of Utility.
7. Developer shall, prior to transfer to Utility of the Facilities, grant
permanent, assignable easements satisfactory to Utility, autl►oriaing
Utility to own. Operate and maintain site Pacilitias anti providing
reasonably adequate rights of access and working space ft►r such
purposes.
8. Developer shall, upon transfer to Utility of the Facilities, provide to
Utility operating manuals, as -built drawings, and all other information
reasonably required to operate, maintain, and repair the Pacitities.
IIEIYICIE Uii
Suloggotter►t fncilitlea Elloenalntl
1. in the event Developer acquires or develops additional land contiguous to
site Development, Utility agrees to provide sewer service to such area in
accordance with the rates, rules and regulations established bs the
Commission from time to time.
6

2, in ilea event additional sewage treatment plant expansions era required
to either Serve the Development or additional land contiguous to the
Development, they will be constructed and instilled in accordance with
Article Vi of the Agreement, and In compliance with all regulatory
requirements.
3. Utility agrees to waive at reimburse to Developer all tap -on or
connection fees, and to make additional defetted or contingent purchase
Itiymenls for all new customers connecting to the sewer system in The
new area In the amounts and under ilia terms as set forth in Article III
herein.
BITICL_gill
I. Upon installation of the sewage Irealmeat and collection faciiiiies
contemplated by this Agreement. Utility will own and maintain said
facilities in accordance wills the standards set by ail applicable
regulatory or governmental authorities. Any additional upgrading of ilia
sewage system, required by the North Carolina Department of Human
Itesourees or other State. Federal or local authorities, not connected with
expansion of the sewage treatment plant capacity, will be the obligation
of Utility at no furllier cost or expense to Developer.
2. In ilia event that, in accordance with this Agreement, ilia construction
and Installation of the sewage treatment facilities contemplated by this
Agreement are not completed within nine (9) months of the date of this
Agreement, neither party hereto shall have any further at other
obligation hereunder, despite the nature of the delay.
3. Except as provided in this Agreement, neither Harty to this Agreement
shall be liable to the Other rot failure, default or delay in performing any
of its obligation hereunder, if such failure, default or delay is caused by
strikes or other labor problems, by forces of nature, unavoidable
accident, fire, acts of the public enemy, interference by civil authorities,
acts or failure to act, decisions or orders or regulations of a n y
governmental or military body or agency, office or commission, delays in
receipt of materials, or any .other cause, whether of similar or diiSSliihilar
nature, not within the control of the party affected and which, by the
exercise of due diligence such party Is unable to prevent or overcome,
7

eAeept as otherwise provided for herain. Should any of the foregoing
events oecar, the parties hereto agree to proceed with diiigence to do
what is reasonable and necessary so that each party may perform lit
obligations under this Agreement,
4. The failvre of either party hereto to enforce stay of the provisions of this
Agreement or the waiver thereof in any instance by either Marty shall
not be construed as a general waiver or relinquishment on Its part or any
such provisions, but the, same shall, nevertheless, be and remain In full
force and effect.
5. The representations, warranties and agreements contshted heraln shall
survive, and continue in effect, after the payment for the Facilities.
Utility agrees to indemnify Developer, their successors and assigns, and
hold Developer harmless against any loss, damage, liability, expense or
cost accruing or resulting from any misrepresentation or breach of shy
representation, warranty or agreement on the part of Utility under this
Agreement; Developer agree to Indemnify Utility, Its successors and
assigns, and hold it and them harmless against any loss, damage, liability,
expense or cost of Utility, accruing or resulting from any
misrepresentation or breach of any representation, warrenly or
agreement on the part of Developer under this Agreement or from any
misrepresentation in or material omission from any certificate or other
document furnished or to be furnished to Utility by Developer.
6. Neither Developer not any entity or individual affiliated with Developer
have executed any agreement with any Iqt purchaser in the
Development, or any other parties, or made any representations to any
such purchasers or other parties whereunder such purchaser or other
parties have acquired any interest lit Facilities either installed or to be
installed under this Agreement.
7. This Agreement sets forth the complete understanding between
Developer and Utility, gild any amendments hereto to be effective must be
made in writing.
8. No0ces, correspondenct and Invoicing required hereunder shall be
given to Developer and to Utility at the ronowing addresses, or at any
other addresses designated in writing by either party subsequent ut the
date hereof;

If to Utility: Carolina Water Service. lac.
of North Carolina
2333 Sanders Road
Northbrook. Illinois 60062
Alto: Mr. perry U. Owens
Chairman & Chief
Executive Officer
If to Developer,' liestron Corporation
11.0. Box 2343
Durham, NC. 27707
Attn. Mr. Charles S. lletter
Delivery, when made by reglstered or certified mail, iball be deemed
complete upon mailing.
9. This Agreement shall be binding upon and Inure to the benefit of the
parties hereto and their respective successors and assigns.
ID. The Exhibits to this Agreement are a part hereof and are hereby
Incorporated In full by reference.
IN WITNESS WHEREOF, the parties hereto have tat their hands and seals
the day and year above first written.
Caraljpa_ Weer Service_ Int:_-
of Nnrth _Carnllea ' �
Chairman slid C.lr.O. `—
A7'iES7'
Secretary
AT
Secretary
Ila:suAR—CMD AZAdm
fly: 1' r 11j 1&tt-1'
President
0

ORTH CAROLINA
AnTERET COUNTY ADDENDUM
THIS ADDENDUM, made and entered into this � _day of
19ii6, by and between llestron Corporation, Inc
ei•einafter referred to as "Developer" and Carolina Water
ervices, Inc., hereinafter referred to as "Utility";
W I T N E S S E T I1:
THAT Nl1EREA9, the parties have hereunto set their hand and
eal to an agreement dated theof' July, 1986, between
eveloper and Utility; and that
WHEREAS, the parties desire to amend some of the language as
ontained in said Agreement, and to add certain clarifying
anguage to better set forth the obligations of each party;
NOW THEREFURE, It is hereby understood and agreed that the
greement dated the_ t.�L of July, 1986 is hereby amended as
ollows:
1. Notwithstanding any of the provisions of this Agreement,
t is understood and agreed that Utility will cooperate with
Developer In furnishing certain Information to the various regula-
ory agencies of the State and Federal Government charged with or
upervising the sewage treatment facilities in North Carolina sr.)
o provide that information required by them to increase the capa-
ity of the sewage treatment facility to its fullest potential.
2. It is further agreed and understood that utility will
lot be responsible for any construction of, or the installation of
ny additional rotor equipment to expand said facility and that
tility will be responsible only for the day to day maintenance
nd repair and replacement of equipment as it wears out or needs
o be replaced beyond the warranty period as set forth in the
greement; however, nothing in this Agreement is to prevent
Itility from expanding said facility by adding to the present
.aeility those items of equipment for the construction of addi-
.lonal sewage treatment facilities to expand said facility with
he express written permission of Developer.
3. The Contract is further amended to provide that should
Itility become unable to operate the sewage treatment facility for
rhatever reason, and that they are unable to find or sell said
'acility to another company who would operate said sewago. treat-
ient facility and guarantee to Developer the continued operation
�r said sewage treatment facility, then Utility will convey to
eveloper any and all assets that have been conveyed to it
ncluding all equipment, fixtures, rigilts-or-way, easements,
+tc. However, Developer will be liable to Utility to repay
Itility for any capital construction, or the addition or any
equipment which would not be placed in said facility in the course
)f ordinary maintenance, those amounts paid by utility for said
,onstruction and/or equipment, less the value that said equipment
ras been depreciated in accordance with the rules and regul.atiorls
>r the Internal Revenue Service and the North Carolina Utilities
:oumissIon . That upon the payment of that. partir_ular sum to
Itility, then their right, title and interest in said property
{ubject to this agreement shall terminate.
il. It is further agreed and understood that ail Ad valorem
.axes for Carteret County and any municipality including fire tax
an any of the assets subject to this agreement shall be tlse sole
and separate obligation of Utility.
S. Article IV is amended to provide that all tap on fees
ire to be controlled by Developer and Developer shall have the
ibsolute and sole discretion as to who may tap on to said sewage
reatment facility and the price that shall be cliarged for said
ap on fee. This paragraph shall amend any and all of the other
lrovisions of Article IV which are at variance with this
�mendment. All other terms and conditions of Article IV not at
ariance with this amendment shall remain in full force and
Erect.

-p-
6. Article VIII is amended to provide that "Paragraph 1,
Upon installation of the sewage treatment and collection facili-
ties contemplated by this Agreement, Utility will own, operate and
maintain said facilities in accordance with the standards set by
all applicable regulatory and governmental agencies, and in accor-
dersce with the terms and obligations with this agreement." All
other terns and conditions as set forth in Article VH I which are
not at variance with these amendments shall remain in full force
and effect.
H WITNESS WHEREOF, the parties hereto have set .their hands
and seals the day and year first above written.
AT.TCST :
Secretary
CAROLINA WATER SERVICE, INC.,
OF Nrr IJ CAROLINA
Br--S�f
Cha i rmart and CEO
H9STRON conpoflatoN
HYAl�),'.
,ti-—�J---
Presidell t
AT,rEST : SHAI.
r
--Secretary
WMXJCXffXM*M ILLINOIS
COUNTY Of COOK //%%
I, __ __ _�7 {. w4 i% , a Notary Pablio or the
County and State foresaT�, ecru_ navi.ci it. nensaree
personally came before me this day and aekaoHle'dged tthat he
�
is the Secretary or Carolina Water Service, Inc. of
North Carolina, agorth Ca�Qli.na..Corporation, and that by
authority duly given and as the act of the corporation, the
foregoing instrument was signed in its name by its_jQlAf•YlltD_r,Cro
?iWft4XDVM , sealed with its corporate seal and attested
by pavc3�emarer&s its Secretary.
Witness my hand and notarial seal, this _ 29L•h _day of
July 1986.
qo ary trblic
My Commission Expires:`yCo,nin;,510"Exp1ralocc.5,1907
NORT11 CAROLINA
COUNTY OF
I, _ a Notary Public of the
County and State aroresaid, certify that
(personally came before me this day and AaknowledgeU than _,,,he
Is Secretary of Hestron Corporation, Inc., a
Corporation, and that by authority dilly
given and as the act othe corporation, the foregoing instrument
f
was signed in its name by lts__� _ President, sealed with
its corporate seal and attested by� as its Secretary.
Witness my hand and notarial seal, this _ day or
, 1986.
Notary Pullin
My Commission Expires:

AI)UFIND UM
'.'his Addeuduut, mate rind entered into iris _ Lilly of
September, IMi. by and belweeo like 11e9111)n COrpO(atiost, iisC. (hereinafter
referred to its "Developer") and Carolina Water Service, Inc. of North Carolina
(Ijc,r.'.narIer reftm-d to as 'Utility"):
Whereas, the Developer anti the Utility have set their hands aitd seals
to an Agreement dated tilt 24th day of July, 1996, and to an amending
Addendum dated the 241h day of July, 086. and,
Wher•eass the parties, in considuratiun of the authority u( ilia Notch
Carolina flu hIic UIiIII-a& COrnmission (hereinaftel referred to as IIta
"Commitision'), t!CVrrQ to clsrily Certain language of said A&feeMont and
Addandnm, and to arnene: certain provisions contained therein,
ilie rerare, the parties do hereby understand and agree I11ae stud
Aeret-meol and Addencfern is to be amendet' its follows:
1. h is under mod by the parties that Developer IntrtuN to lease, and ilse
Uli:icy inIt! Fiji to aa1e from the Developer. the sewer ufllrty facilities in be.
insla!'::Oil within llte Development and the land associated wills Said facilities
for a period of five years (rnm the dale Of the Agreement. It is furthrr
undet%")d thal nt the end of the period of five years, the Utility th;;ell have, for
;s wricu! of six months, an option in purchase said sewer facilmes fur the
tuncider:u:+a %Cs forth in the Ae'rc:nsem.
!t ii hereby ^-riried and understand and agreed its by the partie% (hat, if
at the end n'' five )Car period of Ih, le,,se, the Utlltty sllnuttl Llmo•.0 rat : s
nurs:h:iq- the tewi:r floil2ties, ilia parties will ihilliedialely suck a transfer In
the Deve'i:per of the soviet utility fr:incbict: lgxitted tit the Utility by the
Comm:i6on. !n the evet`1 of ap;unval of llte transfer of su%:h franchise by the
1111IM .irn !O DCw^opt:r. c1.0n ,'t ,; iti,
':t t.!11 ttau::lrr till y I rrl'i t' :Uul
2, 'A•t�cle IV of the afturmenlioned Agreemem enmains lice following
prori:it•a: ".Nt+ sewer 1:;+, rat or cmiteenon fee will be charged by the l.'tt'ily
specII!%-M!y revue -ed by the Developer in writing". 'rise par;ias heieio
agree Ili••! the p,ovkion is hereby artiencled Ul read: "Nn ,eu<r t:tp•un ar
c:wnccIion Ire w.'I '••• charged '-y site Uti!,'s' unless spec rhi;IIty fen lie $144 bl
:,se h•cve!tsper in wri::ng., and approved 1+p fire Cmnmt.ttrnn".
i. Is ;v ftrr•her 1!1.,fI P mood and :.greed by ilia games heseui shay t' C
'an!:ua:v of ltsro:+i,.r`t r er she Meco:un: to the Aireeilwnt dated :•I July 10`n
is antt•t•cer:u Its t••ttd as nilux,:
••'I is understood by llte parties hereto Owl Developer has contitructed
s•t:d sr,ca,e irratm.:I pr'Int at its sale anal and etlivose, and retauas an
aliligaOo•t to a+,•+and and modify said sewage plant, if and when finws 10
:he plant eyu:sl or exceed specified lisni!s act by regulawry authorities.
he tewago Item menl plant anti sewage collection mains have boon
rCsien:•^ Ir serve land owned by Dcvulope r, and has nut hcen
cry,inecrrd !p s•rv^ corlipuuua nre`.s clue its financial cmmraiur,.

4
"AtHcle IV is, therefore, emended to provide that al: sewer tap•on fees
%v;thin the Develonrnent are to he controlled by tha Developer subject to
the approval of the Canimissitfn and Developer shall have >titsaiu,te ar,d
sole discretion as to who may tap on the said sewage tfealmettl facility
and the price Ihat shall be charred for said tap nn fee, provided that sitter
prise doe.t not exceed the nmoums authorfied for such itwer rap on or
connection fens carrindy approved by she Commi-ision for disc within
the Development. This paragraph shall amend any and all of llte other
provis!ons of Article IV which are at vuriance with this Amendment.
Alt other %ems and conditions of Article 1V not at variance with this
amendment ahul! remain in full force and effect."
In witness whereof, the parties hereto have set their hands and seals
the day and yaar first rbove wrimn.
Cnra�l' L-,-W er Service, Inc, or North Caro':,,
By:
Pe ti. O ens, Cttairmnn and CL•O
ATTEST:
Ilestron Corporation
By:_ ---
Charles S. Flester, fer"Ident
ATTEST.

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2335sandeisaoad p0 Box 103
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No1lWook.16mo 60062
3121498•6"0 Atlantic Beach,
NC 28512 AVWft
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February 13. 1987
TO WHOM IT MAY CONCERN:
Carolina Water Service, Inc. of N.C. owns and operates the WATER
and SEWER SYSTEM that services the following areas in Carteret
County, NC.
Hestron Park
Spooners Creek
Brandywine Bay
Pine Knoll Shores
The individuals to notify under the "Underground Damage Prevention
Act, Notice of Intent to Excavate" are A. C. Davis, Sonny Cunningham,
Joe Lawrence at Carolina Water Service, PO Box 103, Atlantic Beach,
NC 28512 or by calling [phone].
Signe
A. C. Davie
Area Manager n ���
u�pi �•� rfor said County and
State,.. • heresy certifyrthat /TyG• , Area Manager
°'.appeared before me on this day and affixed his signature to this-
• t-document.:
myhand and official seal, this the day of
`, �•w:, �, 1987.
A.
r k•. Y' r •� r• IbtGC(T�
c.ofimiasio.n expires
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CARDLIN& CARTER
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The foregoing cnrtificate(s) of
is (ere) certified to he correct. This instnrment was pry'.
sented fo gistraii nd recorded in this office it
Th s day oa I9Oat L O'clock 6.
Sharon Piner
y ��e�ster Deeds
By t, Deputy
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tip., .�• r '[..�: ;s- •f�`;,•;,•,

Joy Lawrence 5P
CARTERET COUNTY
JL Date 05/22/2009 Time 11:51100
OR 130a483 . Page 1'of 5
CARTERET COUNTY
37403 05/22/2002
$8 , 408.00
This Instrument thIazer�d"t rRET ya COUNTY
at
the.dete and time and in the Book and Page shown
on the feat page hereof.
Real Estatev��j
pL�IA Excise Tax
c-5
`"
NORTH CAROLINA GENERAL WARRANTY DEED
Excise Tax: $8,408.00
Parcel Identifier Nos.: 6356.12.95.1632; 6356.12.95.2434;
6356.12.96.2434 and 6356.12.96.4386
Mail after recording to:
Wyrick Robbins Yates & Ponton LLP, 4101 Lake Boone Trail, Ste. 300, Raleigh, NC 27607
This instrument was prepared by:
Wyrick Robbins Yates & Ponton LLP (JEF), 4101 Lake Boone Trail, Ste. 300, Raleigh, NC 27607
Brief Description for the Index:
THIS DEED made this day of May, 2009, by and between:
GRANTOR
HARBOOKBANK II, LLC TRIP BETTY PETER MHC, LLC
4120 Iverson Street
Raleigh, NC 27604
The designation Grantor and Grantee as used herein shall include said parties, their heirs, successors, and
assigns, and shall include singular, plural, masculine, feminine or neuter as required by context.
WITNESSETH, that Grantor, for a valuable consideration paid by Grantee, the receipt of which is hereby
acknowledged, has and by these presents does grant, bargain, sell and convey unto Grantee in fee simple,
all that certain lot or parcel of land situated in the Morehead Township, Carteret County, North Carolina
and more particularly described as follows:
Those certain lands as are more particularly described in Exhibit A which is attached
hereto and made a part hereof by reference.
21506.3-573352 vi �fn

The property hereinabove described was acquired by Grantor by instrument recorded in Book 1214, Page
417, Carteret County Registry.
A map showing the above -described property is recorded in Map Book 28, Page 308, Carteret County
Registry,
TO HAVE AND TO HOLD the aforesaid lot or parcel of land and all privileges and appurtenances
thereto belonging to Grantee in fee simple.
And Grantor covenants with Grantee that Grantor is seized of the premises in fee simple, has the right to
convey the same in fee simple, that title is marketable and free and clear of all encumbrances, and that
Grantor will warrant and defend the title against the lawful claims of all persons whomsoever except for
the exceptions hereinafter stated. Title to the property hereinabove described is subject to the following
exceptions:
See attached Exhibit B.
(Signature page follows)
21508.3-573352 vl '
BOOK Z&.9_ PAW

IN WITNESS WHEREOF, Grantor has executed the foregoing as of the day and year first above
written.
HARBOOKBANK II, LLC
allorth �r limi liabil'kty company
BY..r,
s.
David M. Mountcastle, Member/Manager
STATE OF NORTH CAROLINA
COUNTY OF
I certify that the foflowing person(s) personally appeared before me this day, each acknowledging
to me that he signed the foregoing document: David, M. Mountcastle, Member/Manager of Harbookbank
ll,1.1.C, a North Carolina limited liabilir,.._company.
Date: May J# - 2009.
—Notary Public
LAURI=PUBLIC
'���'
NOTANotary Printed Name
WAKE My Commission Expires: O/!
(Official Seal)
21508.3-573352 v1 BOOK PAGE

EXHIBIT A
Legal Description
LYING AND BEING in Morehead Township, Carteret County, North Carolina and beginning at point
in the northern right-of-way of NC Highway 24, which point is further designated as being the southeast
comer of out parcel B, as shown in map entitled: Shop and Center Tract, recorded in Map Book 28, Page
35, Carteret County Registry. Running thence from said POINT OR PLACE OF BEGINNING and
running North 01' 19' 54" West 370.38 feet to a point; thence North 38' 00' 19" West 167.30 feet to a
point, said point being the southwest comer of the tract as shown in Book 720, Page 373, Carteret County
Registry; running thence from said point South 83' 50' 49" East 265.11 feet to a point; thence North 06°
09' 06" East 432.97 feet to a point; thence North 83° 50' 09" West 151.61 feet to a point center of the
ditch; running thence from said point North 06' 09' 11" East 271.58 feet to a point in the southern right-
of-way of US Highway 70, said point also being the northeast corner of that tract of land described by
Deed in Book 720, Page 373, Carteret County Registry; running thence from said point and running with
the southern right-of-way of US Highway 70 South 70' 53' 11" East 274.10 feet to a point; thence South
73' 04' 37" East 272.53 feet to a point; running thence from said point and leaving US Highway 70 South
14' 19' 50" West 232.03 feet to a point; thence South 75' 52' 52" East 106.81 feet to a point; thence South
01' 25' 08" West 155.00 feet to a point; thence South 07' 07' 48" West 384.44 feet to a point; thence
South 10' 19' 44" East 198.75 feet to a point in the northern right-of-way of NC Highway 24; running
thence with the northern right-of-way of NC Highway 24 South 81 ° 24' 31" West 213.40 feet to a point;
thence South 85' 48' 49" West 201.26 feet to a point; thence North 870 51' 58" West 215.20 feet to the
POINT OR PLACE OF BEGINNING.
The above described tract or parcel of land is subject to all easements and leases to Carolina Water
Services of North Carolina without alteration. There is further conveyed by Grantor to Grantee, all right,
title and interest that Grantor has in the easement in the agreement between MPD-Morehead City
Associates, L.P. as recorded in Book 601, Page 274, Carteret County Registry and as amended and
recorded in Book 649, Page 159, Carteret County Registry. As further conveyed all right, title and
interest in the agreement and easement concerning drainage by and between Hestron Corporation and
MPD-Morehead City Associates, L.P., as recorded in Book 601, Page 275, Carteret County Registry and
as modified in Book 649, Page 160, Carteret County Registry. It's also conveyed all right, title and
interest Hestron Corporation would have in that agreement in Book 649, Page 159, Carteret County
Registry.
There is further conveyed all rights=of--way, easements, lift stations and piping included in the sewer plant
located on the above -described tract or parcel of land, which was subject to an agreement between
Hestron Corporation and Carolina Water Services of North Carolina.
21508.3-513352 vl /

EXHIBIT B
Exceptions to Title
1. Taxes for the year 2009, and subsequent years, not yet due and payable.
2. Easement(s)to Carolina Telephone and Telegraph recorded in Contract Book 10 it Page 6; Book
511, Page 466; Book 422, Page 125.
3. Subject to Department of Transportation for either HWY 70 or Hwy 24, including drainage
ditches and temporary construction easements recorded in Book 257, Page 552; Book 798, Page
332; Book 798, Page 334: and Book 798, Page 336.
4. Easement(s) and/or Right of Way(s) to Carolina Power & Light Company recorded in Book 181
at Page 126; Book 181, Page 127; Book 181, Page 131; Book 181, Page 133 and Book 583, Page
249.
5. Drainage easement and agreement recorded in Book 601, Page 275 between Hestron Corporation
and NPD Morehead City Associates, LLP. This Agreement was modified in Book 649, Page
160.
6. Subject to a drainage easement and agreerrient recorded in Book 601, Page 274 and modified in
Book 649, Page 158.
7. Notice of Reservation of Rights by Carolina Water recorded in Book 557, Page 443.
8. Title to that portion of the Land within the right-of-way of HWY 24 and HWY 70.
9. Subject to matters shown on recorded Map Book 28 at Page 308 including Carolina Water
Service and others for access located on the Land.
10. Rights of other for ingress and egress purposes in and to the use of sewer plant located on the
Land.
11. Subject to matters which may exist or hereafter arise as a result of the placement and use of the
sewer plant tract for sewage disposal including including non-compliance with county, state and
federal regulations, fines, penalties, compliance order, clean up responsibilities, spills,
contamination and other environmental concerns.
12. Tract 4 appears to be encumbered by a Memorandum of Lease between Hestron Corporation and
Morris Communications Corporations, LLC in Book 1118, Page 445. While this lease appears to
be for 2 years and would expire in 2006, there is a first right of refusal which may have
implications beyond the 2 year term to renew the Lease.
13. Rights of others thereto entitled in and to the ditch(es) along the boundary line(s) of the Land.
14. All other easements, rights -of -way, restrictions, and encumbrances of record.
21508.3-573352 vl _
BOOK - PAGE