WQ0018755_Renewal Application_20190116

AQUA.
January 11, 2019
NCDENR / Division of Water Resources
Water Quality Permitting Section
1617 Mail Service Center
Raleigh, NC 27699-0167
Re: Application for Permit Renewal
Aqua North Carolina, Inc.
Castle Bay WWTP
WQ0018755
Pender County
Good Afternoon:
JAN 16 Z919
Non-pischaVge
Unit
permitting
Enclosed are two (2) copies of the completed application Form NDSR 09-18. This
submittal includes:
Permit Application
Certificate of Public Convenience and Necessity
Setback Waivers
Easements
Site Map (s)
Flow Tracking
Should you need any additional information or assistance, please feel free to contact
me [phone] or by e-mail at [e-mail].
Sincerely,
Amanda Berger
Manager of Environmental Compliance
Aqua North Carolina
Cc: Shannon Becker
Joseph Pearce
Joel Mingus
Michael Melton
202 MacKenan Court Cary NC 27511 • AquaAmerica.com
202 MacKenan Court, Cary, NC, 275YY • 919.4672 AquaAmerica.com

State of North Carolina
Department of Environmental Quality
DWR
RECEI1/i-(14Oi���,r�t��R Division of Water Resources
NON -DISCHARGE SYSTEM RENEWAL
Division of Water Resources BAN 1 6 2019 FORM: NDSR 09-18
This form is for renewal without modification for all non= IS��ti "" ' system permits, except Residuals Management and Single -
Family Residence Waste e I ligation System permits.
For more information, visit the Water Quality Permitting Section's Non -Discharge Branch.
I. PERMITTEE INFORMATION:
1. Permittee: Aqua North Carolina Inc.
2. Signature authority's name: Amanda Berger per 15A NCAC 02T .0106 b Title: Manager, Environmental Compliance
Primary Telephone number: [phone] Select Secondary number: [phone] Select
Email Address: Aaowens A uaamerica.com
3. Permittee's mailing address: 202 MacKennon Court
City: CM State: NC Zip: 27511-6447
4. Billing address (if different from above):
City: State: Zip: -
5. Contact person's name (if different from signature authority): Title:
Primary Telephone number: Select Secondary number: (_) = Select
Email Address: _
II. PERMIT INFORMATION:
Existing permit number: WQ0018755
2. Has the facility been constructed? ® Yes or ❑ No
If yes, has the facility been constructed in accordance with the permit and the Division -approved plans and specifications?
f 15A NCAC 02T .O 110] ® Yes or ❑ No
If no, a formal permit modification request shall be submitted to the Division.
3. Has any of the property ownership within the facility and/or disposal area changed from what is indicated in the current permit
(Attachment B — disposal field owner/lessee)? ❑ Yes or ® No
Has the Permittee had a name change or has the permit changed ownership? ❑ Yes or ® No
If yes to either, a permit modification request shall be submitted to the Division. 15A NCAC 02T .0105]
4. Is this facility a Privately -Owned Public Utility? ® Yes or ❑ No
If yes, provide two copies of the Certificate of Public Convenience and Necessity from the North Carolina Utilities Commission
demonstrating the Applicant is authorized to hold the utility franchise for the area to be served by the non -discharge system.
15A NCAC 02T .0115 a 1
5. Is the Permittee a Home/Property Owners' Associations or Developers of lots to be sold? ❑ Yes or ® No
If yes, provide the following:
• For Home/Property Owners' Associations — Operational Agreement FORM: HOAj and a copy of the proposed or
approved Articles of Incorporation, Declarations, and By-laws [15A NCAC 02T .0115 c
• For Developers of lots to be sold — Operational Agreement (FORM: DEV) [15A NCAC 02T .0115 b ]
FORM: NDSR 09-18 Page 1 of 3

State of North Carolina
DWR
Division of Water Resources
III. SITE MAP:
Department of Environmental Quality
Division of Water Resources
NON -DISCHARGE SYSTEM RENEWAL
FORM: NDSR 09-18
1. Provide an updated site map in accordance with 15A NCAC 02T .0105[d] that shows the following:
Boundaries, and physical features not under purview of other licensed professions shall be provided by a professional land
surveyor
❑ Legend, north arrow, scale, and legible in black and white
❑ Topographic contour intervals not exceeding 10 feet or 25 percent of total site relief
❑ Soil mapping units on all disposal sites
❑ All facility -related structures and fences within the treatment, storage, and disposal areas
❑ All habitable residences and places of assembly within 500 feet of all treatment, storage, and irrigations sites
❑ Location of all wells, streams (ephemeral, intermittent, and perennial), springs, lakes, ponds, ditches, and other surface
drainage features within 500 feet of all waste treatment, storage, and disposal site(s)
❑ Location and identification of each monitoring well (identify any background/upgradient wells)
❑ Latitude and longitude coordinates of all monitoring wells (decimal degrees to 6 digits)
❑ Location and identification of major components of the waste disposal system
❑ The wetted perimeter of all irrigation fields with field names (named according to the approved permit)
❑ Location and ownership of property boundaries within 500 feet of the disposal area (including road/rail right-of-ways)
❑ The delineation of compliance and review boundaries
❑ Distance measurements verifying all setbacks are being met
❑ Stormwater drainage controls
❑ 100-year floodplain (if applicable)
IV. SETBACK WAIVERS, EASEMENTS, AND LEASES:
1. Does the permit have any setback waivers, easements, or leases? ® Yes or ❑ No
If yes, provide copies of all documents and complete the table below:
Document
Type
Grantor or
Parcel No.
Grantee
Expiration County
Registered
Deed
Book
Deed
Page
Document
Description
Easement
Randy L'
Blanton
Aqua NC
_Date
Pender
2757
235
Effluent/Irrigation
Agreement
Setback Waiver
HOA
Aqua NC
Pender
4677
480-481
WWTP Waiver
Setback Waiver
Randy
Blanton
Aqua NC
Pender
4677
478-479
WWTP Waiver
Select
Select
S elect
Select
Select
Select
Select
Select
1. The document description shall list any reduced setbacks with distance, etc.
FORM: NDSR 09-18 Page 2 of 3

State of North Carolina
DWR
Division of Water Resources
Department of Environmental Quality
Division of Water Resources
NON -DISCHARGE SYSTEM RENEWAL
FORM: NDSR 09-18
f[plicant's Certification per 15A NCAC 02T .0106 h :
l►/"'(Q ?E2aite&that this renewal application has been reviewed by me, and is accurate and complete to the best of my
knowledge. I understand that any unauthorized discharge of wastewater from this non -discharge system to surface waters or the land
may result in an enf6rcement action that may include civil penalties, injunctive relief, and/or criminal prosecution..L .will make no claim
against the Division of Water Resources should a condition of this permit be violated. I also understand that if all required parts of this
application are not completed, this application may be returned to me as incomplete. I further certify that the Applicant or any parent,
subsidiary, or other affiliate of the Applicant has not been convicted of an environmental crime, has not abandoned a wastewater facility
without proper closure, does not have an outstanding civil penalty where all appeals have been exhausted or abandoned, are compliant
with any active compliance schedule, and does not have any overdue annual fees.
NOTE — In accordance with General Statutes 143-215.6A and 143-215.6B, any person who knowingly makes any false statement,
representation, or certification in any application package shall be guilty of a Class 2 misdemeanor, which may include a fine not to
exceed $10,000 as well as civil penalties up to $25,000 per violation. The Applicant's Certification shall be signed in accordance with
15A NCAC 02T .0106(b). Per 15A NCAC 02T .0106 c , an alternate person may be designated as the signing official if a delegation
letter is provide from a person who meets the criteria in 15A NCAC 02T .0106(h)
Signature:
Date: _ 01 r l d Lz o `9
THE COMPLETED APPLICATION AND SUPPORTING DOCUMENTATION SHALL BE SUBMITTED TO:
NORTH CAROLINA DEPARTMENT OF ENVIRONMENTAL QUALITY
DIVISION OF WATER RESOURCES
WATER QUALITY PERMITTING SECTION
NON -DISCHARGE BRANCH
By U.S. Postal Service: By Courier: By Email:
Non -Discharge Branch Non -Discharge Branch — Archdale 640D Non-Dischar e.Re orts ncdenr. ov
1617 Mail Service Center 512 N. Salisbury St.
Raleigh, NC 27699-1617 Raleigh, NC 27604
TELEPHONE NUMBER: [phone]
FORM: NDSR 09-18 Page 3 of 3

Castle Bay Flow Analysis
Sewer Acounts
Residential 282
Commercial 3
Average
Maximum
Minimum
2017 September
24820
46090
15420
August
29629
48330
14960
July
26527
39640
19030
June
26427
35400
8300
May
35927
78220
19220
April
33911
65580
14750
March
31669
63300
2980
February
31815
43340
20690
January
47245
88050
31030
2016 December
42047
97640
24320
November
34733
74750
19920
October
46279
85260
13540
Average
34,252
Per 3 bedroom
SFRE 121
Per bedroom 40
Per 2 bedroom
SFRE 121
Per bedroom 61

FILED
05 AUG 25 PM 3: 38
_1l1'7C= H. SudGEC00D
RKIS i ER OF DEEDS
PEHi+iFR CCdIHTY, itC
3K2757PG233
Recofd and Verified
Joyce NE cegood
Regis Beds
Pender unty, NC
STATE OF NORTH CAROLINA EASEMENT DEED
COUNTY OF PENDER
EASEMENT DEED, made this /77.1/dayof 2005, by and between
RANDY L. BLANTON, and wife JUDY E. BLANTON ("Grantors") and AQUA NORTH
CAROLINA, INC., a corporation of the State of North Carolina ("Grantee");
WITNESSETH:
WHEREAS, Grantors are the owners of tracts of land in Pender County, North
Carolina upon which they have developed a subdivision known as Castle Bay; and
WHEREAS, Randy L. Blanton formed Castle Bay Utilities, Inc. to own and operate
certain water and sewer utility facilities at Castle Bay; and
WHEREAS, Castle Bay Utilities, Inc. has entered into an Asset Purchase
Agreement (the "Agreement") to convey to Grantee the utility facilities at Castle Bay; and
WHEREAS, the Agreement provides for certain easements necessary for the
operation and maintenance of the utility facilities at Castle Bayto be conveyed to Grantee;
and
WHEREAS, Castle Bay Utilities, Inc. has requested Grantors to convey to Grantee
the easements herein described and the Grantors desire to convey such easements.
NOW, THEREFORE, in consideration of the sum of Ten Dollars ($10.00) paid by
Grantee to the Grantors, the receipt of which is hereby acknowledged, and other valuable
consideration, the Grantors hereby grant, bargain, sell and convey to Grantee those
certain perpetual, indefeasible easements in Pender County, NC and shown on a plat
consisting of seven sheets entitled "Easement Survey Castle Bay Subdivision" recorded in
Map Book _Q Pageg ,Z thratqb=apt of the Pender County Registry (the "Plat"), said
easements being more fully described on the Plat and labeled on the Plat as follows:
prepale 0r11,414 D ✓ "LY aCh
NO

BK27'7PG234
a) 20' Access and Utility Easement °A"
b) 25' Utility Easements "B-1" and "B-2"
c) 10' Utility Easements "B-3"
d) 25' Utility Easements "C-1" and "C-2"
e) 20' Access and Utility Easements "D-1" and "D-2"
f) 25' Utility Easements "E-1" through "E-10"
g) 25' Utility Easement °G-1"
h) Utility Easement "G-2"
i) 20' Access and Monitoring Well Easement "H"
j) 20' Utility Easement "I"
k) 20' Access and Utility Easement X"
TO HAVE AND TO HOLD all rights and rights -of -way, easements, estate and
privileges over, in, through and to the above -described land unto the Grantee, its
successors and assigns, forever, for the purposes and only for the purposes shown on the
Plat.
IN WITNESS WHEREOF, the Grantors have executed and sealed this agreement
as of the day first above written.
r
(SEAL)
4—L�� �
STATE OF NORTH GAROLINA
COUNTY OF %),ek) HO x4tW
Personally appeared before me, V • k1 --S-�faotd', , a Notary Public,
RANDY L. BLANTON, who acknowledged the due execution of the foregoing instrument
for the uses and purposes therein expressed.
WITNESS my hand and notarial seal, this /' day of A tta- , 2005.
i
Li fp h1�-�
Notary Public
My commission expires: *2 -mod d-V,-)
I _ - OFFICIAL SEAL
(SEAL) r 4a NORTH CAROLINA - NEW HANOVER COUNTY
1(M. SIRACRAN
NOTARY PUBLIC
My Commission Expires
STATE OF NORTH CAROLINA
COUNTY OF NEW HANOVER
Personally appeared before me, U : M 4-ya cu"\ a Notary Public,
JUDY E. BLANTON, who acknowledged the due execution of the foregoing instrument for
the uses and purposes therein expressed.
WITNESS my hand and notarial seal, this L day of AL 'u�-r 2005.
�.
Notary Public
My commission expires:
(SEAL) &�NORTH L SEAL
EW HANOVER COUNTYACNAN
PUBLICires

K2797P8235
NORTH CAaOLDIA - FENDER COUNTY: The foreRomQ' is
(or anne;.ed) cmtificate of • r D - 05
certified to be correu^t. This ; _day of AD
- Pender C��t
tei of Deeds
30i CE SM Deputy(t�t
By
_;,Sister of Deeds f

Ili IIIIIIIIIIIIIIIIIIIIIIIIIIIIII I III
Doc No: 20044290
Recorded: 01/031201911-09:58 AM
Fee Amt: $25.00 Page 1 of 2
Pender County North Carolina
Sharon Lear Willoughby, Register of Deeds
BK 4677 PG 478 - 479 (2)
State of North Carolina
Department of Environmental Quality
Division of Water Resources
NUN -DISCHARGE WASTWATER SYSTEM WAIVER
AGREEMENT TO WANE SETBACKS AS REQUIRED BY
15A NCAC 02T .0506(a), .0506(b), .0606(a), .0706(a) AND .1006(a)
I, ala 1?o A , certify that I am a deeded owner of the property located at:
Address: x lD Z L.V t s Ulf - uo1 / d Parcel No.: 39 f`. - /Q Yf ��
City: 4� S7'-f-fctGT State: r at Zip Code: County:
Furthermore, I certify that I am authorized to make decisions regarding this property, and that I do hereby
agree that the setback distances cited below be granted to the Applicant/Permittee listed on the following
page.
❑ I understand the setback requirements set forth in 15A NCAC 02T. For the parcel identified
above, I consent to a reduced setback from feet to feet, thereby allowing the
application of wastewater effluent as near as feet from my property line.
❑ I understand the setback requirements set forth in 15A NCAC 02T. For the parcel identified
above, I consent to a reduced setback from feet to feet, thereby allowing the
application of wastewater effluent as near as feet from my residence.
I understand the setback requirements set forth in 15A NCAC 02T7 For the parcel identified
above, I consent to a reduced setback from 50' feet to .2_�j feet, thereby allowing the
construction of wastewater treatment and storage units as near as 9 3 `feet from my property line.
❑ I understand the setback requirements set forth in 15A NCAC 02T. For the parcel identified
above, I consent to a reduced setback from feet to feet, thereby . allowing the-'.:.
construction of wastewater treatment and sto a units as near as feet from my residence.
Signature: Date:
FORM: Nl7WSW 03-17 / Page i of2
RANDY BLANTQN

Bic 46T7
pg 479
ApplicautJPermitiee: u ;t/�r,' ?yet �/a �i,
Address: v s 74- Parcel No.:
City: 'f 'I State: "e Zip Code: 11 County:
NORTH CAROLINA, ! t uO V�&*Iv COUNTY
I, S a Notary Public fark--)v.c;3�yk&,2-erCounty, North Carolina,
do hereby certify that P;jrq L"ti personally appeared before me this day
and aclatowledged the due execution of the foregoing instrument.
Witness my hand and official seal, this the Z'day of ,
SEAL `:' !PC 5 Wyla
�O 1-
'rNll lilil`
Signature of Notary Public
My commission expires 11
Once notarized, this form shall be recorded at the Register of Deeds in the county or
counties in which the described properties are located. A _copy of the recorded
waiver shall be sent to the following address:
Division of Water Resources
Water Quality Permitting Section
1617 Mail Service Center
Raleigh, North Carolina 27699-1617
FORM: NDWSW 03-17 Page 2 of 2

ill Il�lllllllillllllllllllllll II
Doc No: 20044291
Recorded: 011031201911.09:59 AM
Fee Amt. $26.00 Page 1 of 2
Pender County North Carolina
Sharon tear Willoughby, Register of Deeds
BK 4677 PG 480 - 481 (2)
State of North Carolina
Department of Environmental Quality
Division of Water Resources
NON -DISCHARGE WASTWATER SYSTEM WAIVER
AGREEMENT TO WAIVE SETBACKS AS REQUIRED BY
15A NCAC 02T .0506(a), .0506(b), .0606(a), .0706(a) AND .I 006(a)
Castle Bay Property Owners
i,
Address:
Hoover Road
certifv that I am a deeded owner of the property located at:
Parcel No.: 3293-08-7012
City: M?IytF. erzd __ State: !t%L Zip Code:0?9m._County: _ l _
Furthennore, I certify that I am authorized to make decisions regarding this property, and that I do hereby
agree that the setback distances cited below be granted to the ApplicantiPermittee listed on the following
page.
❑ 1 understand the setback requirements set forth in 15A NCAC 02T. For the parcel identified
above, I consent to a reduced setback from feet to feet, thereby allowing the
application of wastewater effluent as near as feet from my property line.
❑ 1 understand the setback requirements set forth in 15A NCAC 02T. For the parcel identified
above, I consent to a reduced setback from feet to feet, thereby allowing the
application of wastewater effluent as near as feet from my residence.
X❑ I understand the setback requirements set forth in 15A NCAC 02T. For the parcel identified
above, 1 consent to a reduced setback from 50 feet to 13.2 feet, thereby allowing the
construction of wastewater treatment and storage units as near as L3, feet from my property line.
❑ I understand the setback requirements set forth in 15A NCAC 02T. For the parcel identified
above, I consent to a reduced setback from feet to feet, thereby allowing the
construction of wastewater treatment and storage units as near as feet from my residence.
Signature: � � _ _ Date: _ V7// 2
FORM: NDWSW 03-17
`1 RANDY BLANTON
Page 1 of 2

Bk 4677
_Pg481_
nppiicasiti Permittee: Aqua North Carolina —� ��� 3293-17-2B69-0000
Parcel No.:
Address' 2D2 MacK__ e_an Court ender
State: NC Zip Code: 27� CountyP
City: Ca
NORTH CAROLINA, I
COU'�Tt'
4jM
t d tiotary Public for[buS County, North Carolina,
�ryl A I t w 11�i♦! -
r personally appeared Before me this day
do hereby certify that
and acknowledged the due execution of the foregoing instrument.
day of �'e nr. arm ICI
Witness my hand and official seal, this the � J
SEAL.
Signature of Notary Public Yly commission11
expires AI�°4 11-1
Once notarized, this form shall be recorded at the Register of Deeds in the county or
countics in which the described properties are located. A copy of the recorded
waiver shall be sent to the following address:
Division of Water Resources
Water Quality Permitting Section
1617 Mail Service Center
Raleigh, North Carolina 27699-1617
Page 2 of 2
FOPM NDWSW 03-17

EFFLUENT EASEMENT AND IRRIGATION AGREEMENT
COVER SHEET

including all exhibits and schedules hereto, if any, as may be amended from tineto time.
1.6. "Effluent Storage Pond" shall mean the thirteen million gallon storage pond to be
owned and operated by Aqua in which the Reuse Effluent (as defined below) will be stored after
treatment at the WWTP (as defined below), and from which the Reuse Effluent will then be
pumped to be sprayed on the Spray Areas (as defined below).
1.7. "Golf Course" shall mean the golf course and areas appurtenant to the golf course at
the Subdivision, including golf course rough, buffers, cart paths and access areas.
1.8. "NCUC" shall mean the North Carolina Utilities Commission.
1.9. "Permit" shall mean the permit for the operation of the Wastewater Treatment
System and Spray Irrigation Facilities (each as defined below) issued by DWQ, as the same may
be modified or renewed from time to time.
1.10. "Reuse Effluent" shall mean the wastewater that has been treated by Aqua to the
point that it meets the quality standards required by the Permit.
1.11. "Reuse Effluent Pumping Station" shall mean that certain pump house, pumps and
controls to be located near the Effluent Storage Pond, the function of which will be to pump
Reuse Effluent to and through the Spray Irrigation Facilities at the Subdivision.
1.12. "Spray Areas" shall mean all areas on the golf course, golf course'buffers, golf
course rough, golf course cart paths and golf course access areas, and other specific tracts of land
at the Subdivision that have been permitted by DWQ for spray irrigation of Reuse Effluent.
1.13. "Spray Irrigation Facilities" shall mean all Reuse Effluent irrigation lines, Reuse
Effluent Pumping Station, pumps, booster pumps, irrigation and spray devices, controls and other
devices used in the application of Reuse Effluent from the Effluent Storage Pond upon the Spray
Areas located within the Subdivision, together with all the appurtenant easements.
1.14. "Wastewater Treatment System" shall mean the WWTP (as defined below), the
collection system that delivers wastewater to the WWTP, the Effluent Storage Pond, the upset
pond, all lift stations, the Reuse Effluent Pump Sation and other facilities used in the collection,
treatment, holding and discharge of the wastewater, except the Spray Irrigation Facilities.
1.15. "WWTP" shall mean the wastewater treatment plant located within the Subdivision.
2. Treatment and Storage. Aqua will treat the wastewater created by the Subdivision in its
WWTP and discharge the Reuse Effluent into.the Effluent Storage Pond. The Reuse Effluent will
be treated by Aqua to the tertiary standards established by DWQ in its Permit No. WQ 0018755,
and any modified or successive permits issued by DWQ. The amount of flow from the
Subdivision based upon the DWQ application for approval is permitted to be 100,000 gallons per
day ("gpd") calculated at 300 gpd per house for 314 houses (ultimately 94,200 gpd) and 7,500

6.3 Blanton shall begin spraying Reuse Effluent onto the Spray Areas from and after the
effective date of the transfer of the water and wastewater system assets to Aqua pursuant to the
Assets Purchase Agreement.
7. ua's Right to Assume S ravinq orations. Blanton shall operate the Spray
Irrigation Facilities in such a manner and with sufficient frequency to distribute Reuse Effluent in
accordance with Section 6. If, in the reasonable opinion of Aqua, Blanton is not operating or
maintaining the Spray Irrigation Facilities in accordance with the terms of this Effluent Easement
or DWQ requirements, then Aqua shall give Blanton written notice to make such repairs or
improve such operation and maintenance procedures and if Blanton fails or refuses to do so within
thirty (30) days after receipt of said written notice, then, at Aqua's option, Aqua shall have the
right to enter the Spray Areas and undertake such responsibilities to the extent necessary to
operate the Spray Irrigation Facilities to accomplish the purposes of this Effluent Easement, and
charge Blanton for the reasonable and necessary costs actually incurred thereby; provided,
however, that nothing herein shall relieve Blanton from the continuing obligation of operation and
maintenance of Spray Irrigation Facilities. Should Aqua assume the responsibility to operate and
maintain the Spray Irrigation Facilities, it shall have no obligation to maintain the Spray Areas or
Spray Irrigation Facilities for any purpose other than the irrigation with the Reuse Effluent;
provided, however, that Aqua shall use commercially reasonable efforts to avoid damage to the
Spray Irrigation Facilities and the Spray Areas. `5
8. Testing and Ins ections. Aqua shall have the right, at any time and upon reasonable
notice to Blanton, to enter the Spray Areas and inspect and review the operation and
maintenance of the Spray Irrigation Facilities, take tests including water samples, soil borings, and
conduct other tests and monitoring of the Spray Areas (including the installation and maintenance
of monitoring wells) in relation to the operations to be conducted under the Effluent Easement;
provided, however, that (i) Aqua's testing and inspection activities on the Spray Areas shall not
interfere with the intended use of the Spray Areas, and (ii) Aqua shall use commercially
reasonable efforts to avoid damage to the Spray Irrigation Facilities and the Spray Areas. Should
Blanton's property be damaged by such entry, Aqua will restore it to its original condition.
9-. Service Intenawtion- In the event of service interruptions caused by a malfunction of the
WWTP, Aqua shall exercise due diligence in completing the necessary repairs and restoring Reuse
Effluent delivery to the Effluent Storage Pond. In the event of service interruption caused by a
malfunction of the Spray Irrigation Facilities, Blanton shall exercise due diligence m completing
the necessary repairs and restoring Reuse Effluent irrigation to the Spray Areas; failing which
Aqua may undertake such repairs as provided in Section 7 above.
10. Grant of Easement. Blanton hereby grants and conveys to Aqua, its successors and
assigns, a perpetual non-exclusive Reuse Effluent spray irrigation easement as more fully
described in this Effluent Easement within all the Spray Areas identified in the attached
Exhibit A ("Easement Areas"). Castle Bay shall not further encumber the Easement Areas, or
engage in any activity therein, or grant any other interest or privilege therein to any other party,
that would interfere with Aqua's enjoyment of its rights or fulfillment of its obligations created by
the Effluent Easement, unless such encumbrance, interest or privilege is subordinated to Aqua's

15.3. Independent Contractor. The parties hereto are and shall be independent
contractors to one another, and nothing herein shall be deemed to cause the Effluent Easement to
createanagency, partnership or joint venture between the parties hereto.
15.4_ Counte arts. This Effluent Easement maybe executed in one or more
counterpart signature pages (including facsimile counterpart signature pages), each of which will
be deemed to be an original copy of this Effluent Easement and all of which, when taken together,
will be deemed to constitute one and the same agreement.
15.5. Headings. The headings of particular provisions of this Effluent Easement are
inserted for convenience only and shall not be construed as a part of this Effluent Easement or
serve as a limitation or expansion on the scope of any term or provision of this Effluent Easement.
15.6. Enforcement of Effluent Easement. Each party acknowledges and agrees that the
other party would be irreparably damaged if any of the provisions of this Effluent Easement are
not performed in accordance with their specific terms and that any breach of this Effluent
Easement 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 Effluent Easement by a decree
of specific performance and to temporary, preliminary an&permanent injunctive relief to prevent
any breach or threatened breach of any of the provisions of this Effluent Easement, without
posting any bond or other undertaking.
15.7. Notices. All notices and other communications required or permitted hereunder
shall be in writing and shall be sent either (i) personally by hand delivery, (ii) by United States
first-class mail, postage prepaid, (iii) by nationally recognized overnight courier, or (iv) by
facsimile addressed to the address or facsimile number indicated on the signature pages to this
Effluent Easement (or at such other address or facsimile number'as such party or permitted
assignee shall have furnished to the other parties hereto in writing). All such notices and other
written communications shall be effective on the date of delivery, mailing or facsimile
transmission.
15.8. Waiver. No waivers of, or exceptions to, any term, condition or provision of this
Effluent Easement, in any one or more instances, shall be deemed to be, or construed as, a further
or continuing waiver of any such term, condition or provision.
15.9. Entire A _gTeement. This writing and the documents referred to herein embody the
entire agreement and understanding between the parties hero and there are no other agreements
or understandings, oral or written, with reference to the subject matter hereof that are not merged
herein and superceded hereby.
15.10. Modifications in Writing. This Effluent Easement shall not be modified, amended
or changed in any respect except in writing, duly signed by the parties hereto, and each party
hereby waives any right to amend this Effluent Easement in any other way.

(SIGNATURE PAGE TO EFFLUENT EASEMENT)
IN WITNESS WFIEREOF, the parties have caused this Effluent Easement to be duly executed in
their respective names, all by authority duly given, the day and year first above written.
Attest
• 5
Secretary orporate Seal)
State of North Ca�j olina
County of /jad I�rw-r
Randy L. Blantmr
Address: Post Office Box 10137
Wilnnington, NC 28404
Fax: [phone]
AQUA ORTH CAROLINA, INC.
By:
N P ' ps, Pres de
Address: 202 MacKenan Court
Cary, ITC 27511
Fax: [phone]
Personally appeared before me, Y . /'�I -�Q� �� , a Notary Public,

�
certain tracts of land in Pender County, NC, labeled Golf Cou
Thoserse Area "A",
plat of Castle Bay by Hobbs Surveying Company,
«$ «C„, � «E �.F UPon
Inc., recorded in Map Book 35, Page 80 of the Pender County Registry.

Michael F. Easley, Governor
William G. Ross Jr., secretary
North Carolina Department of Environment and Natural Resources
December 14, 2008
CERTIFIED MAIL # 7005 0390 0001 3199 9864
RETURN RECEIPT REQUESTED
Mr. Neil Phillips
Aqua North Carolina, Inc.
P/O Drawer 4889
Cary, -North Carolina 27519
Subject Notice of Violation & Notice of -Intent to Enforce
Castle Bay Reuse Wastewater System
Permit No. WQ0.018755
Pender County
Dear Mr. Phillips:
Alan W. Klimek, P.E. Director
Division of Water Quality
Wilmington Regional office
RECEIVED Mr 2 0 In
This letter is a follow-up to a previous Notice -of Violation, dated October 2, 2006, in which you were
informed -of a property line buffer anomaly for the wastewater storage lagoon, This -Notice -of Violation &
Notice of Intent to Enforce concerns the failure by the Permittee to apply for renewal of Permit No.
WQ0018765 within 6 months of permit expiration.
In addition, this NOV voids the previous NOV issued October2, 2006 concerning irrigation storage pond
property line buffer noncompliance. -It has been determined that the current irrigation storage pond with
it's reduced volume of approximately 5.4 MG (as compared to the permitted 13 MG design volume) is
adequate to meet the storage needs of the facility_ at a design flow of 100,000 gpd and the reduced pond
size complies with the permitted 50 feet property line buffer requirement Enclosed you will find. an
.inspection report that provides details of a recent inspection of the irrigation storage pond.
The failure to -apply for permit renewal within 6 months of permit expiration is a violation of Permit
Condition VI.8 and North Carolina General Statute 143-215.1(a)(2). Please be advised that a civil penalty
of $25,000 per violation may be assessed in -accordance with North Carolina General Statute 143-
2-15.6A(a)(2)..
It is requested that you respond in writing to me within ten of days of the receipt of this letter and explain
why the permit renewal is late and provide proof of your recent request for renewal of Permit
W00018755.
If you have questions concerning this letter or if you would like to talk further on the subject, please
contact either myself or Mr. Jim Bushardt at [phone].
Yours very truly,
07�� 1 ,_.
Charles Stehman, Ph.D., P.G.
Regional Environmental Supervisor 11
.lb:castle bay.d06
Cc: Wilmington APS Files
Central APS Files
N. C. Division of Water Quality 127 Cardinal Drive Ext Wilmington. NC 28405 [phone],
675$t

sz=: ems- 4
STATE OF NORTH CAROLINA
UTILITIES COMMISSION
RALEIGH
DOCKET NO. W-218, SUB 204
BEFORE THE NORTH CAROLINA UTILITIES COMMISSION
In the Matter of
Application by Aqua North Carolina, Inc., 202 RECOMMENDED
MacKenan Drive, Cary, North Carolina 27511, for } ORDER GRANTING
Certificate of Public Convenience and Necessity for ) FRANCHISE AND
Water and Sewer Utility Service in Castle Bay ) APPROVING RATES
Subdivision in Pender County, North Carolina, and for j
Approval of Rates
HEARD IN: Pender County Courthouse, Courtroom No. 2, 100 North Wright Street,
Burgaw, North Carolina, on April 27, 2005, at 7:00 P.M.
BEFORE: Ronald D. Brown, Hearing Examiner
APPEARANCES:
For Aqua North Carolina, Inc.
Laurence A. Cobb, Attorney, Sanford Holshouser, LLP, One Exchange
Plaza, 219 Fayetteville Street, Suite 1000, Raleigh, North Carolina 27601
For the Using and Consuming Public
Elizabeth D. Szafran, Staff Attorney, Public Staff — North Carolina Utilities
Commission, 4326 Mail Service Center, Raleigh, North Carolina
27699-4326
BROWN, HEARING EXAMINER: On January 5, 2005, Aqua North Carolina, Inc.
(Applicant or Aqua), filed an application with the Commission seeking a certificate of
public convenience and necessity to provide water and sewer utility service in Castle
Bay Subdivision in Pender County, North Carolina (Castle Bay), and for approval of
rates.
On February 9, 2005, the Commission issued an Order Requiring Customer
Notice in this docket. Due to an error in its earlier order, on February 21, 2005, the
Commission issued a Reissued Order Requiring Customer Notice, which stated that the
matter could be determined without public hearing if no significant protests were
received subsequent to the customer notice. On March 16, 2005, the Public Staff
received a petition signed by 47 customers requesting a hearing and subsequently

recommended that a hearing be scheduled in this matter. On March 31, 2005, the
Commission issued an Order Scheduling Hearing and Requiring Customer Notice in
this matter.
On April 1, 2005, the Public Staff filed a Notice of Affidavits and the Affidavits of
Calvin C. Craig, III, Financial Analyst, Economic Research Division; Laura Bradley
Stewart, Staff Accountant, Accounting Division; and Jay B. Lucas, Utilities Engineer,
Water & Sewer Division (the Public Staff's Affidavits).
On April 19, 2005, the Public Staff received a letter and petition indicating that
the majority of Castle Bay residents polled favored a flat monthly residential sewer rate
of $39.00 in addition to the rates proposed in the application.
On April 27, 2005, the hearing was held as scheduled. The Applicant presented
the testimony of Neil R. Phillips, Present of
Staff' sAffidavits gua. Seven were allowed n tollev'denceses also
testified at the hearing The
Based upon the foregoing, the verified application, the evidence and exhibits
presented at the hearing, and the entire record in this matter, the Hearing Examiner
makes the following
FINDINGS OF FACT
1. Aqua is duly organized under the laws of the State of North Carolina and
is authorized to do business in the state. Aqua is properly before this Commission
seeking a certificate of public convenience and necessity to furnish water and sewer
utility service in Castle Bay.
2. Aqua presently holds water and sewer utility franchises serving
approximately 10,000 customers. Aqua's record of service is satisfactory.
3. Castle Bay is an existing subdivision. The Castle Bay water and sewer
systems currently serve 75 residential customers, who are not being charged rates.
The service area is the area shown on the plans attached as Exhibit 9 to the application
form filed in this docket. The Applicant intends to eventually serve 320 customers.
4. The water service facilities consist of wells, a pressure tank chemical
addition, and a distribution system. The sewer service facilities consist of manholes,
collection lines, pump stations, force mains, and a sewage treatment plant with disposal
by spray irrigation.
5. Aqua is purchasing the Castle Bay water and sewer utility systems under
an agreement between Aqua and Castle Bay .Utilities, Inc., dated October 2004. Aqua
is paying $1,000 for each water and sewer connection at the time of closing, contingent
payments of $1,000 for each new water or sewer customer connected after closing, a
lump sum payment of $1,100 per month from April 14, 2004, until closing (representing
E

reimbursement of one half of the maintenance contract presently being paid by the
seller), and at closing, reimbursement of the seller's legal fees, not to exceed $1,500.
The Public Staff recommended that the agreement be approved.
6. 'The Public Staff recommended --that _the advances for construction be
deducted from rate base in future proceedings so that Aqua would not earn a return on
plant for which it has not yet paid the developer.
7. The Applicant has filed all exhibits required with the application.
S. The rates proposed by the Applicant (as amended during the hearing),
agreed to by the Public Staff, and agreed to in part by a majority of Castle Bay
residents, attached as Appendix B, are reasonable and should be approved.
9. The Applicant has the technical, managerial, and financial capacity to
provide water and sewer service in this new franchise area. No other person or utility
seeks to furnish the service proposed by the Applicant.
10. The Public Staff recommended that the water and sewer franchise be
granted, subject to Aqua posting an acceptable bond of $20,000 with the Commission.
sted with the
,1 90, 000 of bond suretty000 assigned ds to Commission.
spec specific subdivisions s onsand $60,000 oamount,
$1bond
$1
surety is unassigned.
11. It is in the public convenience and necessity that the Applicant be granted
a water and sewer utility franchise for Castle Bay.
EVIDENCE AND CONCLUSIONS FOR FINDINGS OF FACT NOS. 1 AND 2
These findings of fact are essentially informational, procedural, and jurisdictional
in nature, and the matters which they involve are for the most part uncontroversial.
They are supported by information contained in the verified application, the affidavits
filed by the Public Staff, and the Commission files and records regarding this
proceeding.
EVIDENCE AND CONCLUSIONS FOR FINDING OF FACT NO. 3
The evidence for this finding is contained in the verified application, the affidavit
of Public Staff Engineer Lucas, and the testimony of Applicant witness Phillips and
public witness Adams.
3

EVIDENCE AND CONCLUSIONS FOR FINDING OF FACT NO. 4
The evidence for this finding is contained in the verified application, the affidavits
_ of Public Staff Engineer Lucas and Public Staff Accountant Stewart, and the testimony
of Applicant witness Phillips,:,,
In response to issues raised by public witnesses, Applicant witness Phillips
described the current water and sewer systems at Castle Bay and Aqua's future
expansion plans, which cannot be implemented until Aqua owns the systems. He
explained how Aqua would operate the system (the sewer operator would visit Castle
Bay daily, the water operator would make several visits a week, and the system would
be continuously monitored out of Aqua's Wilmington office) and that Total
Trihalomethanes, which are a byproduct of the water chlorination process and have
been a recurring problem at Castle Bay under current operations, should not be a
problem once Aqua takes ownership of the Castle Bay system as Aqua would flush the
system on a weekly basis. Mr. Phillips explained how the grinder eumps work and that
the homeowners own and are. therefore, resloonsible for the grinder pumps, much like a
hot water heater. Mr. Phillips indicated that Aqua would have a generator at Castle Bay
for use in the event of a power failure.
EVIDENCE AND CONCLUSIONS FOR FINDINGS OF FACT NOS. 5, 6, AND 7
The evidence for these findings is contained in the verified application and the
affidavits of Public Staff Engineer Lucas and Public Staff Accountant Stewart. The
Hearing examiner concludes that the agreement between Aqua and Castle Bay Utilities,
Inc, should be approved.
EVIDENCE AND CONCLUSIONS FOR FINDING OF FACT NO. 8
The evidence for this finding is contained in the verified application, the affidavit
of Public Staff Engineer Lucas, and the testimony of Applicant witness Phillips and
public witnesses.
In response to issues raised by public witnesses, Applicant witness Phillips
explained that in a 1996 rate case the Commission established statewide rates for
Aqua's predecessor, Hydraulics, Ltd., which were proposed by Aqua in this case, and
that the base charge components of rates were designed to cover expenses the
company incurs, such as testing, even if no water is flowing through the pipes. He
explained that Aqua would be responsible for the cost of future system expansions and
builders would pay the $500 tap -on fees, not customers. He indicated that he had no
knowledge of homeowners dues being applied to water bills, nor any connection fees
some homeowners paid at closing.
On April 19, 2005, the Public Staff received a letter and petition indicating that
the majority of Castle Bay residents polled favored a flat residential sewer rate of $39.00
per month in addition to the rates proposed in the application. Forty customers were for
4

the $39.00 flat rate and five were against it. The letter and petition were admitted into
evidence at the hearing. At the hearing, Applicant witness Phillips agreed to amend
Aqua's request for monthly residential sewer rates to a $39.00 flat rate, instead of the
higher metered rates requested in its application.
The Hearing Examiner concludes that the proposed rates (as modified at the
hearing) are reasonable and should be approved.
EVIDENCE AND CONCLUSIONS FOR FINDINGS OF FACT NOS. 9 AND 10
The evidence for these findings is contained in the affidavits of Public Staff
Engineer Lucas and Financial Analyst Craig and the entire record in this proceeding.
The Hearing Examiner concludes that it is appropriate to assign $20,000 of Aqua's
unassigned bond surety to Castle Bay.
EVIDENCE AND CONCLUSIONS FOR FINDING OF FACT NO. 11
This finding of fact is based upon the recommendation of the Public Staff and the
entire record in this proceeding. Based upon the foregoing findings of fact, the
recomExaminer
concludes
the that the public ublic ff, and the records of the convenience and necessity would sbe served ed byting
he
Examiner conclu
granting of a water and sewer franchise in Castle Bay to Aqua.
IT IS, THEREFORE, ORDERED as follows:
1. That $20,000 of the $60,000 unassigned bond surety shall be assigned to
Castle Bay Subdivision. The remaining unassigned bond surety shall be $40,000.
ua is granted
2. That Aqd a certificate of public convenience and necessity to
service in Castle Bay Subdivision in Pender County,
provide water and sewer utility
North Carolina. The service area covered in the franchise is the area shown on the
plans attached as Exhibit 9 to theapplication form filed in this docket.
3. That Appendix A shall constitute the Certificate of Public Convenience and
Necessity.
4. That the Schedule of Rates, attached as Appendix B, is approved for
Aqua in Castle Bay Subdivision and is deemed filed with the Commission pursuant to
G.S. 62-138.
5, That the October 2004 agreement between Aqua and Castle Bay Utilities,
Inc., is hereby approved..-
6. That the advances for construction will be deducted from rate base in
future proceedings.
5

7. That a copy of the Notice to Customers, attached as Appendix C, and a
copy of the Schedule of Rates, attached hereto as Appendix B, shall be mailed with
sufficient postage or hand delivered by Aqua to each customer no later than 15 days
after the date of this Order; and that Aqua shall file with the Commission the attached
Certificate of Service properly signed and notarized not later than 30 days from the date
of this Order. Furthermore, ew °pstomery of sallotice the time he Customersto ustomerdreques requests water and
of Rates
shall be provided to each n
sewer service.
ISSUED BY ORDER OF THE COMMISSION.
This the 1 st day of June, 2005.
rb060205.02
NORTH CAROLINA UTILITIES COMMISSION
P _A4
Patricia Swenson, Deputy Clerk
1.1

STATE OF NORTH CAROLINA
UTILITIES COMMISSION
RALEIGH
APPENDIX A
DOCKET NO. W-218, SUB 204
BEFORE THE NORTH CAROLINA UTILITIES COMMISSION
AQUA NORTH CAROLINA. INC.
is granted this
CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY
to provide water and sewer utility service
in
CASTLE BAY SUBDIVISION
Pender County, North Carolina
subject to any orders, rules, regulations,
and conditions now or hereafter lawfully made
by the North Carolina Utilities Commission.
ISSUED BY ORDER OF THE COMMISSION.
This the 1 st day of June, 2005.
NORTH CAROLINA UTILITIES COMMISSION
Patricia Swenson, Deputy Clerk