WQ0000185_Final Permit_20190430

ROY COOPER
Governor
MICHAEL S. REGAN
Secretary
LINDA CULPEPPER
Director
NORTH CAROLINA
Environmental Quality
April 30, 2019
BEN STIKELEATHER—ASSISTANT COUNTY MANAGER
OCEAN SANDS WATER AND SEWER DISTRICT
153 COURTHOUSE ROAD — SUITE 302
CURRITUCK, NORTH CAROLINA 27929-0039
Subject: Permit No. WQ0000185
Ocean Sands WWTP
High -Rate Infiltration System
Currituck County
Dear Mr. Stikeleather:
In accordance with your permit change of ownership request received January 31, 2019, and
subsequent additional information received April 9, 2019, we are forwarding herewith Permit No.
WQ0000185 dated April 30, 2019, to Ocean Sands Water and Sewer District for the operation of the subject
wastewater treatment and high -rate infiltration facilities.
This permit shall be effective from the date of issuance through June 30, 2024, shall void Permit
No. WQ0000185 issued July 17, 2017, and shall be subject to the conditions and limitations therein. The
Permittee shall submit a renewal application no later than January 2, 2024.
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
July 17, 2017:
➢ Old Condition I11.7. —This facility is not located in the 100-year floodplain.
➢ Old Condition VI.2. — This permit is not voidable.
The following permit conditions are new since the last permit issuance dated July 17, 2017:
➢ Condition II.11. — The setbacks listed in this condition have been updated for accuracy.
➢ Condition IIL4. — Requires the Permittee to take measures to prevent effluent ponding in or
runoff from the infiltration sites.
➢ Condition 111.11. — Requires a protective vegetative cover to be established and maintained on
all berms, pipe runs, erosion control areas, surface water diversions, and earthen embankments.
➢ Condition I11.12. —Requires metering equipment to be tested and calibrated annually.
North Carolina Department of Environmental Quality I Division of Water Resources
Q Fm 512 North Salisbury Street 1 1617 Mail Service Center I Raleigh, North Carolina 27699-1617
NORTH CAROU
o.p+roWdmrMiWM&ntWo a1�1 r 919.707.9000

Mr. Ben Stikeleather
April 30, 2019
Page 2 of 2
➢ Condition III.13. — Requires an automatically activated standby power source capable of
powering all essential treatment units shall be on site and operational at all times
➢ Condition IV.9. — Requires date of infiltration equipment calibration and date and results of
power interruption testing on alternate power supply to be recorded in the maintenance log.
➢ Condition VI.10. — States that this permit shall not be renewed if the Permittee or any affiliation
has not paid the required annual fee.
➢ Attachment A — 3 x Year monitoring has changed to March, July, and November to match
groundwater monitoring months.
➢ Attachment C — Groundwater monitoring frequencies have been changed to monthly to correct
the inadvertent change in the last permit. Groundwater monitoring for volatile compounds has
been changed from semiannually to annually.
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 Ashley Kabat at (919)
707-3658 or ashley.kabat(@ncdenr.gov.
Sincerely,
Lmda Culpepper, Director
v Division of Water Resources
cc: Currituck County Health Department (Electronic Copy)
Washington 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
Ocean Sands Water and Sewer District
Currituck County
FOR THE
operation of a 600,000 gallon per day (GPD) wastewater treatment and high -rate infiltration facility
consisting of:
construction and operation of a 400,000 GPD Phase II and Phase III Amphidrome wastewater treatment
facility consisting o£ two 47,285 gallon primary clarifiers with four 1 horsepower (hp) solids removal
pumps; a 35,208 main reactor dosing tank with eight 7.5 hp dosing pumps; a 49,424 gallon mudwell with
four 1 hp solids -removal pumps and two 7.5 hp return pumps; eight 7,480 cubic foot (ft3) main submerged
attached -growth bioreactors (SAGB); two 20,000 gallon clearwells and one 24,684 gallon clearwell with
sixteen 6 hp backwash pumps, four 3 hp secondary reactor dosing pumps, and four 3.8 hp secondary reactor
backwash pumps; two 934 ft3 secondary SAGB; one 55 gallon chlorination plastic drum tank; an electric
pulse pump; two 36,550 gallon solids holding tanks with one 0.5 hp decant pump; two 39,859 gallon
holding tanks; twenty chemical feed pumps; six 30 hp blowers; an effluent flowmeter; a final dosing
chamber with a 16,667 gallon working -volume; two 9.5 hp final dosing pumps; one 750 kilovolt -amp (kVa)
generator; and all associated piping, valves, controls, and appurtenances; the
continued operation and subsequent demolition of the existing 500,000 GPD wastewater treatment facility
consisting of. a 180,000 gallon influent aerated surge tank with odor control; a 500,000 GPD clarifier set;
a 50,000 gallons of residuals storage; a 280 square feet (ft2) of tertiary filtration capacity; a 10,417 gallon
liquid chlorination facility; a 3,200 gallon dosing tank; a 200 kilowatt (kW) standby generator; and all
associated piping, valves, controls, and appurtenances; the
continued operation of a 200,000 GPD Phase I Amphidrome wastewater treatment facility consisting of: a
600,000 GPD flow equalization basin; a 3.8 million gallon per day (MGD) channel grinder; a 5.5 MGD
fine screen; a manual bar screen; three 50,000 gallon FEQ chambers; a 47,285 gallon primary clarifier; a
27,000 gallon main reactor dosing tank; four 13,990 gallon main SAGB; a 7,000 gallon secondary SAGB;
one 20,000 gallon and one 11,882 gallon clearwell units; a 55 gallon chlorination tank; an electric -pulse
pump; one 36,550 gallon and one 39,859 gallon sludge holding tanks; a flowmeter; an auxiliary generator;
and all associated piping, valves, controls, and appurtenances; the
continued operation of a 600,000 GPD high -rate infiltration facility consisting of: a 2.41 acre high -rate
infiltration field with 118 spray irrigation heads served by two 15 hp submersible dosing pumps; and all
associated piping, valves, controls, and appurtenances; and the
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continued operation of a groundwater lowering system consisting of. a series of trenches; a pump station
located in the northeastern corner of the site that conveys groundwater from the groundwater lowering
system to an unnamed tributary into Currituck Sound; and all associated piping, valves, controls, and
appurtenances
to serve the Ocean Sands WWTP, with no discharge of wastes to surface waters, pursuant to the application
received January 31, 2019, subsequent additional information received April 9, 2019, and in conformity
with the Division -approved plans and specifications considered a part of this permit.
This permit shall be effective from the date of issuance through June 30, 2024, shall void Permit No.
WQ0000185 issued July 17, 2017, and shall be subject to the following conditions and limitations:
I. SCHEDULES
1. Demolition of the existing 500,000 GPD wastewater treatment facility plant shall begin within 30 days
of completion of construction of the Phase II and III Amphidrome wastewater treatment facilities .
[15A NCAC 02T .0108(b)(1)(B)]
2. Upon completion of construction and prior to operation of the permitted modifications, the Permittee
shall submit an engineering certification from a North Carolina licensed Professional Engineer
certifying that the permitted facility has been constructed in accordance with G.S. 143-215.1,
Administrative Code Title 15A Subchapter 02T, this permit, and the Division -approved plans and
specifications. For phased and partially certified facilities, the Permittee shall retain the responsibility
to track further construction approved under this permit, and shall provide a final engineering
certification upon project completion. Mail the Engineering Certification to the Division of Water
Resources, Non -Discharge Branch, 1617 Mail Service Center, Raleigh, NC 27699-1617, or Non-
Discharge.Reportstiz?,ncdenr. og_v. [15A NCAC 02T .0116(a)]
3. The Permittee shall notify the Washington Regional Office, telephone number [phone], at least
two business days in advance of initial operation of the constructed facilities so that the Division can
conduct a startup inspection. [15A NCAC 02T .0108(b)(1)(B)]
4. The Permittee shall request renewal of this permit on Division -approved forms no later than January 2,
2024. [15A NCAC 02T .0105(b), 02T .0109]
II. 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)]
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. Effluent quality shall not exceed the limitations specified in Attachment A. [15A NCAC 02T .0705(b)]
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5. Application rates, whether hydraulic, nutrient, or other pollutant, shall not exceed those specified in
Attachment B. [15A NCAC 02T .0705(m)]
6. 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)]
7. 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]
8. The Permittee shall apply for a permit modification to establish a new compliance boundary prior to
any sale or transfer of property affecting a compliance boundary (i.e., parcel subdivision). [ 15A NCAC
02L .0107(c)]
9. No wells, excluding Division -approved monitoring wells, shall be constructed within the compliance
boundary except as provided for in 15A NCAC 02L .0107(g). [ 15A NCAC 02L .0107]
10. Except as provided for in 15A NCAC 02L .0107(g), the Permittee shall ensure any landowner who is
not the Permittee and owns land within the compliance boundary shall execute and file with the
Currituck County Register of Deeds an easement running with the land containing the following items:
a. A notice of the permit and number or other description as allowed in 15A NCAC 02L .0107(f)(1);
b. Prohibits construction and operation of water supply wells within the compliance boundary; and
c. Reserves the right of the Permittee or the State to enter the property within the compliance boundary
for purposes related to the permit.
The Director may terminate the easement when its purpose has been fulfilled or is no longer needed.
[15A NCAC 02L .0107(f)]
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11. The facilities herein were permitted per the following setbacks:
a. The infiltration sites were modified April 15, 2002. The setbacks for infiltration sites originally
permitted or modified from February 1, 1993 to September 1, 2006 are as follows (all distances in
feet):
i. Each private or public water supply source:
100
ii. Surface waters:
200
iii. Groundwater lowering ditches:
200
iv. Surface water diversions (upslope):
200
v. Surface water diversions (downslope):
200
vi. Each well with exception of monitoring wells:
100
vii. Each property line:
501
viii. Top of slope of embankments or cuts of two feet or more in vertical height:
100
ix. Each water line:
10
x. Each swimming pool:
100
xi. Public right of way:
50
xii. Nitrification field:
20
xiii. Each building foundation or basement:
15
1 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 .02190)(5)]
The to -be -demolished 500,000 GPD wastewater treatment facility was modified April 15, 2002.
The setbacks for storage and treatment units originally permitted or modified from February 1,
1993 to September 1, 2006 are as follows (all distances in feet):
i. Each habitable residence or place of assembly under separate ownership: 1001
ii. Each private or public water supply source: 100
iii. Surface waters: 50
iv. Each well with exception of monitoring wells: 100
v. Each property line: 50 2, 3
vi. Nitrification field: 20
1 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.
2 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.
3 Per a settlement agreement recorded in the Currituck County Register of Deeds, reduced
setbacks from the treatment units to any property line are as follows:
Parcel No.
Deed Book / Page
Setback
Description
open spaces on
locate and maintain
previously recorded
utility facilities related
plats Sections D, E, F,
230 / 600
0 feet
to the water and sewer
H, I, J, K, L, N, P, Q,
systems within the
R, and G.
specified areas
[15A NCAC 02H .02190)(5)]
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c. The Phase I Amphidrome treatment unit was permitted May 29, 2015, and the Phase 1I and III
Amphidrome treatment units were permitted July 17, 2017. The setbacks for storage and treatment
units originally permitted or modified from September 1, 2006 to August 31, 2018 are as follows
(all distances in feet):
i. Each habitable residence or place of assembly under separate ownership:
1001
ii. Each private or public water supply source:
100
iii. Surface waters:
50
iv. Each well with exception of monitoring wells:
100
v. Each property line:
50 2,3
1 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.
2 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.
3 Per a settlement agreement recorded in the Currituck County Register of Deeds, reduced
setbacks from the treatment units to any property line are as follows:
Parcel No.
Deed Book / Page
Setback
Description
open spaces on
locate and maintain
previously recorded
utility facilities related
plats Sections D, E, F,
230 / 600
0 feet
to the water and sewer
H, I, J, K, L, N, P, Q,
systems within the
R, and G.
specified areas
[15A NCAC 02T .0706(d), 02T .0706(e), 02T .0706(f), 02T .0706(g)]
III. 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)]
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 Ocean Sands 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)]
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8. The Permittee shall prohibit public access to the wastewater treatment, storage, and infiltration
facilities. [15A NCAC 02T .0705(p)]
9. The Permittee shall dispose or utilize generated residuals in a Division -approved manner. [ 15A NCAC
02T .0708, 02T .1100].
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 Washington 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)]
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)]
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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)]
6. 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. Pursuant to G.S. 143-215.1C(a), the Permittee shall provide to its users and the Division of Water
Resources an annual report summarizing the performance of the wastewater treatment and high -rate
infiltration facility and the extent to which the facility has violated this permit, or federal or State laws,
regulations, or rules related to the protection of water quality. This report shall be prepared on either a
calendar or fiscal year basis and shall be provided no later than 60 days after the end of the calendar or
fiscal year. Two copies of the annual report provided to the Permittee's users shall be submitted to:
Division of Water Resources
Water Quality Permitting Section
1617 Mail Service Center
Raleigh, North Carolina 27699-1617
[G.S. 143-215.1C(a)]
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)]
9. 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.).
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[I 5A NCAC 02T .0707(i)]
10. Monitoring wells MW-4, MW-5, MW-6, MW-7, and MW-9 shall be sampled at the frequencies and
for the parameters specified in Attachment C. All mVpiRg, 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)]
11. 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)]
12. Noncompliance Notification:
The Permittee shall report to the Washington 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 Washington 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)]
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1I1
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)]
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)]
VI. GENERAL CONDITIONS
Failure to comply with the conditions and limitations contained herein may subject the Permittee to a
Division enforcement action. [G.S. 143-215.6A, 143-215.613, 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(0)]
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)]
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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]
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 30t` day of April 2019
NORTH CAROLINA ENVIRONMENTAL MANAGEMENT COMMISSION
j { _
?�mda Culpepper, Director
Division of Water Resources
By Authority of the Environmental anagement Commission
Permit Number WQ0000185
WQ0000185 Version 3.4 Shell Version 180901 Page 10 of 11

Permit No. WQ0000185 High -Rate Infiltration System
Ocean Sands Water and Sewer District April 30, 2019
Ocean Sands WWTP Currituck County
ENGINEERING CERTIFICATION
❑ Partial ❑ Final
I, , as a duly licensed North Carolina Professional
Engineer, having ❑ periodically / ❑ fully observed the construction of the permitted facilities, do hereby
state to the best of my abilities that the facility was constructed in compliance with G.S. 143-215.1,
Administrative Code Title 15A Subchapter 02T, this permit, and the Division -approved plans and
specifications.
Documentation of any variation to this permit, and the Division -approved plans and specifications, is in the
attached as -built drawings.
Description of variations:
Professional Engineer's Name
Firm Name Firm No.
Address
City I State I Zip Code I
Telephone I Email I Seal, Signature, and Date I
THE COMPLETED ENGINEERING CERTIFICATION, INCLUDING ALL SUPPORTING
DOCUMENTATION, SHALL BE SENT TO THE FOLLOWING ADDRESS:
NORTH CAROLINA DEPARTMENT OF ENVIRONMENTAL QUALITY
DIVISION OF WATER RESOURCES
NON -DISCHARGE BRANCH
By U.S. Postal Service By Courier/Special Deliven_
1617 MAIL SERVICE CENTER 512 N. SALISBURY ST.
RALEIGH, NORTH CAROLINA 27699-1617 RALEIGH, NORTH CAROLINA 27604
WQ0000185 Version 3.4 Shell Version 180901 Page 11 of 11

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NORTH CAROLINA
} RRITUCK COUNTY
BOOK 2 3 0 PAGE 600
�� SETTLEMENT AGREEMENT
G S AGREEMENT is entered into this 16th day of June, 1987, by and
betwtd Coastland Corporation a corporation duly organized under the laws
of the(tate of North Carolina and having principal offices located at 1112
Laskin 00, Virginia Beach, Virginia, 23451, and Ocean Sands, Inc., a
North 06A Tina corporation the assets of which have been merged into
Coast land%ereinafter sometimes collectively referred to as "Coastland"),
and CurritQk County, a body corporate and public organized under the laws
of the Staoe of North Carolina and having principal offices at the
Currituck County Courthouse, Currituck, North Carolina 27929 (hereinafter,
"the County").
WHEREAS, Coastland is engaged in the business of real estate
development on t uter Banks of Currituck County, and in particular is
the developer of a Ossort project known as Ocean Sands; and
WHEREAS, CoastlaieeApfendant
rporation and Ocean Sands, Inc. are plaintiffs and
Currituck County is in litigation now pending in the United
States District Court i the Eastern District of North Carolina, (No.
84-38-CIV-2, hereinafter,>.referred to as the "federal suit"), which
litigation involves the ��rraayyl,idity of certain zoning regulations as they
affect the Ocean Sands devel nt; and
WHEREAS, Currituck CountM s the plaintiff and Coastland Corporation is
the defendant in litigation v pending in the North Carolina Court of
Appeals (No. 841SC1168, hereinafter referred to as the "state suit"), which
litigation involves the validity,o^ an agreement the terms of which purport
development; and
to require the County to provide16r and sewer service to the Ocean Sands
WHEREAS, the parties to this agr,N�fent recognize it is in their mutual
best interest to resolve all penditigation and other matters of
controversy or dispute arising outor related to the Ocean Sands
development; and
WHEREAS, pursuant to Section 719C of to County toning Ordinance, The
Board of County Commissioners on April 21, 1987 issued to Coastland
Corporation a conditional use permit (hereinafter "The Permit"), attached
hereto as Exhibit A authorizing it to complete Ocean Sands and made the
effectiveness of that permit expressly contilMent upon execution by
Coastland of this settlement agreement and comp aMce with certain of its
terms; ernn
NOW THEREFORE, in consideration of the premises the mutual covenants
set forth below, the parties hereby agree as follows•
�e
�J

(1) Coastland. Where applicable, the term shall include Coastland's
successors and assigns, including purchasers from Coastland of
lots or tracts within Ocean Sands.
(2) Co�unq. Currituck County. To the extent that the County's
obligations under this agreement are assumed by the District, then
the term "County" shall, in appropriate context, refer to the
District.
V
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V1,
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Y
(3) District. The water and sewer district established in accordance
with ection 4 of this agreement.
Econ�omicalll Infeasible. Notwithstanding that the dominant
purpose o{—this Agreement is to assure Coastland that its Ocean
�" Sands development may henceforth be and remain marketable without
elay or interruption on account of the unavailability of water
d sewer service, a proposed manner of providing such service
s�ll be considered economically infeasible if reasonable minds
wo not differ that the cost of providing such service in that
marm9k is excessive to the extent that it would be utterly
unreiasonable and unrealistic to require that the service be
provided in that manner, considering the benefit to Coastland and
the ability of the County to finance such service.
(5) Master PW, The master plan of Ocean Sands, consisting of three
drawings led MP1, MP2, and MP3 prepared by Envirotek, Inc. and
dated ApriT,4, 1987, a copy of which is appended to Exhibit A,
attached here and the contents of which are a part of this
agreement.
(6) Utility Facilit`es. The term shall include wells, ponds, pumping
sta ions-, a'1-Cn s",'es"ewage treatment and discharge facilities, water
treatment and sto0ae facilities, water and sewer lines and other
equipment and faci�ies related to the water and sewer systems
required for Ocean los.
(7) Ocean Sands. The entKre development (consisting of approximately
67T—acres covered by the ermit.
Section 2. Coastland's Genera li ations.
(a) Within thirty days aftero he execution of this agreement,
Coastland shall: (1) Pay in full by cashier's or ertified check the amount of
delinquent ad valorem taxes an nterest it owes on properties
listed in the name of Coastland amoration or Ocean Sands, Inc.

r�
Q
flaOK 230 PAGE 602 3
for tax years 1977 through 1980 as well as 1984 and 1985. If paid
on or before July 31, 1987, this amount shall be $88,393.66. The
County acknowledges that, with such payment, the ad valorem tax
obligation of Coastland for all years through 1985 will have been
O fully satisfied with respect to all properties described in the
first sentence of this subsection (1).
(2);�Convey or have conveyed to the County the following:
To the extent not previously dedicated or conveyed, all
existing water and sewer lines outside the boundaries of
individual lots as well as necessary easements for the same.
b. All easement rights it has retained to locate and maintain
utility facilities related to the water and sewer systems
within areas dedicated as open spaces on previously recorded
plat of Sections D, E, F, H. i, J, K. L. N, P. Q. and R, as
wel open space located on the west side of Ocean Trail
with Section G (i.e., the present site of the water
treatmk& plant).
(3) Execute and I with the U.S. District Court for the Eastern
District of Ndkt.Carolina the Notice of Voluntary Dismissal of
the federal sui"ttached as Exhibit B; and
(4) Execute and delivP Michael 8. Brough, Attorney for the County,
the Motion to With Appeal in the state suit, a copy of which
is attached as Exhiblo
(5) Execute and deliver to Michael B. Brough, Attorney for the County,
The Motion to Vacate J nt and Enter Consent Judgment, Motion
to Amend Complaint and d Party Defendant, and the proposed
Consent Judgment, attache Exhibits D, E1, and F respectively.
(b) Coastland shall pay to the C<"'ty on or before December 31, 1987:
(1) All delinquent ad valorem taxe nd interest owed on the property
within Section F of Ocean Sands own as Sea Loft Village for tax
years 1980 through and including 6. If paid during the month
of December, 1987, this amount sha(T be $42,851.69.
(2) All delinquent taxes and interest it owes on property within Ocean
Sands for tax year 1986. If paid during the month of December,
1987, this amount shall be $67,342.71.
(c) Simultaneously with the execution of tos agreement. Coastland
shall provide the County with an interim easem from James Johnson
(substantially in the form attached hereto as Exh� 6) to utilize that
portion of Section V (approximately two acres adj a to the existing
rotary distributors) that is necessary to accomnodatlf�he two additional
rotary distributors that must be constructed immediatel o comply with the
Y�

r� .111Y.1 YG .1. pr.YYG- 7. 1"". r.IG G..,11Y Y4.G 1/Y14G. .i .R. Yi Y6Y '. ■ - %-,
Q Master Alan and that title to said Section V is to vest in the County as
provided in subsection (d).
yl�\ (d) Coastland acknowledges that the County is entitled to acquire
title to the eight acre parcel shown as Section V and -covenants that
neither Coastland nor J.E. Johhson, Jr., present title holder, will object
to the entry by the court of an order vesting title in the County pursuant
to the terms of a Settlement Agreement entered into between Whalehead
Q%Properties, et al, and Coastland dated February 20, 1984.
(e) With respect to all sections of Ocean Sands where common open
sp (including reserve utility open space) is required other than those
se
ons specified in subsection 2(a)(2)b above, Coastland shall convey or
hav conveyed to the County easement rights to locate the facilities
descKT4ed in subsection 2(a)(2)b within such open space areas, (See
Sectibpl,7 below for limitations upon the County's discretion to locate
utilit l-_cilities in open space.)
(1) Q h conveyance shall be made before any lot within any such
sl$tion is sold or before any building permit is issued for such
s I eoelon, whichever occurs first, unless conveyence is earlier
req fired under (2) below.
(2) If the County determines that, consistent with the other
provision& of this agreement, utility facilities must be installed
in an 6Meveloped section of Ocean Sands before Coastland
designate the area(s) within such sections that are to be
preserved common open space in accordance with subsection
5(d)(4) of � Permit, then the County may submit to Coastland a
written reqWt to convey to the County easement rights for a
specified aret,Qithin the section in question (up to a maximum
open space perc�ptage set forth in Section 5(d) of The Permit) and
Coastland shall,oithin thirty days after receiving such request,
either:
a. Convey the regi*ted easement rights, or
b. Notify the County of its intent to withdraw the section in
question from the s of the Permit as provided in Section
10(b) of the Permior
C. Notify the County of0ts intent to submit to the County a
master plan for the d�lopment of that section which shows
haw the required open ace will be provided. This plan
shall be submitted to th ounty within sixty days thereafter
and Coastland shall conve o the County (simultaneously with
the transmission of the Gitar Plan or as soon thereafter as
possible) easement right ,-(to the open space area so
designated.

V
0
BOOK 2 3 U PAGE 604
(f) Within forty-five days after receiving from the County a written
�equest to do so (which request shall be made only if the County determines
the requested easements are reasonably necessary to provide water service
u this agreement), Coastiand shall convey to the County (i) an easement
th gh Sections X and Y to allow a water line and pump to be constructed
to w water from Currituck Sound for the proposed desalinization plant,
as 1 as (ii) an easement to allow salinized water from the
desal nation plant to be discharged into the ocean.
(g) th respect to the conveyances required under this section,
Caasttan all bear the cost of deed preparation and revenue stamps (if
required by��), and the County shall pay the cost of recording the deeds.
If the Co y requires a metes and bounds description, this shall be
provided by the County.
Section 3. County's Obligation to Provide Service.
(a) Subject and in accordance with the remaining provisions of this
agreement, the Cou* shall provide and maintain water and sewer service to
the entire Ocean S418F development.
(b) On the date %str.sng
agreement is executed, the water supply source
for the water system the Ocean Sands development consists of three
shallow aquifer wells. ,,4he parties anticipate that the existing wells,
together with two additii 1 wells to be located within the Ocean Sands
development, can provide i for to
800 dwelling units (or the
equivalent in non -reside 1 demand). Thereafter, and subject to
subsection (d), the County h ll obtain additional water from whatever
source can provide an adequaW and assured long term source of supply at
the most reasonable cost. Among the alternatives that have been identified
as being technically feasible a the folowing: (i) additional wells ,
located on the Outer Banks but side the Ocean Sands development; (ii) f.
mainland wells, with a water SUPM line running across Currituck Sound;
(iii) a desalinization plant with r water obtained either from deep wells
or Currituck Sound, and (iv) Dare Co�
(c) On the date this agreement. executed, the sewage treatment
system serving the Ocean Sands devel �nt
relies mainly upon existing
drain fields and a rotary distributor the disposition of treated
wastewater. The parties anticipate that Wadditional rotary distributors
will be installed within Section V to meet the immediate need to expand the
system's capacity in accordance with State requirements. Thereafter,
additional system capacity will be obtained by installing underground low
pressure drain fields rather than above ground_votary distributors unless
(i) approval cannot be obtained from apprWiate state or federal
regulatory authorities, or (ii) underground line rove to be economically
infeasible, or (iii) the parties agree upon a sat j�yctory alternative.
(d) The County shall, following generally adce ted principles and
policies of a public utility, make water and sewer see available within
Ocean Sands as needed on a timely basis so that developent is not delayed
Y�

reason bond financing is not available or for other sound reasons. In
O addition, while both parties reasonably expect that the water and sewer
systems described herein can be constructed and financed as contemplated,
both parties also recognize that the future cannot be predicted with
certainty and that the County shall not be required or expected. in order
to provide service as contemplated under this agreement, to attempt that
which is impossible or that which, while theoretically possible, is illegal
or economically infeasible. Nor shall the County be under any obligation
o condemn land located outside of Ocean Sands to fulfill its obligations
under this agreement (although nothing in this agreement shall be
nterpreted as limiting the County's right to exercise its power of eminent
domain as to land outside of Ocean Sands).
.0 ) The County shall make water and sewer service available to
Sect s4 0 and M as soon as possible after Coastland has supplied the
Count ith the in tract engineering design plans for those sections.
Seci:*n 4. Creation and Ex�sion of District Within Ocean Sands.
(a) "i; is understood that the County expects to fulfill the
obligationsv-;tt forth in Section 3 by establishing a Water and Sewer
District undbrArticle 6 of G.S. Chapter 162A, and that the District shall
assume the County's obligation as provided in Section 10. However,
assumption by the District shall not relieve the County of its obligations
under this agreement.
(b) At the f regular meeting of the Board of Commissioners after
the mutual executii�d f this agreement, the County shall initiate action to
establish the DistrQ and shall diligently pursue the establishment of
this District within 00 t earliest time frame permissible under the law.
Initially, this Distri t,�hall include all that area designated as sections
0, E, F, H, I, J. K. t,CN P, 4, and R on the Master Plan.
(c) The District estCished in accordance with subsection (a) may be
expanded under the provist of G.S. 162A-87.1. Within the sections of
Ocean Sands (as shown on thb aster Plan) that are not included within the
District initially, the Dis i t shall be expanded in a manner that is
consistent with the mutual it ?ent of the parties that (i) the District
provide service only to areas that are within the District, and (ii) areas
be annexed to the District ord as water and sewer service becomes
available to them. Within Se on T, Coastland shall petition for
annexation to the District underS. 162A-87.1(b) in a manner that is
consistent with this subsection. ( use an extension of the District can
become effective only at the beginnifW of a fiscal year, it is recognized
that service to a particular area m aetually become available shortly
before or after that area is added to t District).
(d) It is acknowledged that, under. Gen. Stat. § 162A-89, the
governing body of the District shall be the Currituck County Board of

BOOK 230 PAGE 606
C �si H th
�,,l omms oners. owever, a Board shall establish an advisory committee to
Vceive information from and make recommendations to the Board on all
2pects of the District's operations. The advisory committee shall consist
of at least three but no more than five members, and its composition shall
b signed to ensure input from those most affected by the operations of
th strict. The committee's membership shall include at least one member
rec nded by the Ocean Sands Property Owners Association and one member
rec �ded by Coastland.
Sec n 5. Expansion of District and Providing Service BVond
�,0..�� 'Ocean and
(a) Ezeh t as provided in the remainder of this section, nothing in
this agreemi shall limit the discretion of the governing body of the
District to determine whether, when, and under what conditions the District
should be expanded beyond the boundaries of Ocean Sands or water and sewer
services provided by the District beyond those boundaries.
(b) Subject t ubsection (d) and except as otherwise mutually agreed
by the parties in ting, expansion of the District beyond Ocean Sands or
provision by the Di riot of water or sewer service beyond Ocean Sands
shall be permissible as follows:
(1) Capacity to se0lce Ocean Sands to the fullest extent development
is authorized unWr the Permit must be assured.
(2) The natural resoup of Ocean Sands shall not be impaired or used
in any way to provt. service outside Ocean Sands.
(3) For a period of ten �0)ars after the execution of this agreement,
the water and sewer treatment plants located within Ocean Sands
shall not be used to prgAa service outside Ocean Sands.
(c) If any of the utility f%Slk0_
ities installed to provide water or
sewer service to Ocean Sands are larger than is reasonably expected
to be necessary to provide service tcean Sands, with the expectation or
intention of using such facilities to vide service to developments other
than Ocean Sands, then the costs ociated with "oversizing" such
facilities shall not be paid for out revenues generated by or from
properties within Ocean Sands. X
(d) Should the District determine that it is willing to provide
service to areas outside Ocean Sands but that, consistent with subsection
(b), it can provide such service only if Coastland agrees and relinquishes
its right to construct some of the ,commercia or residential density
authorized under the Permit, then the Distric ay serve areas outside
Ocean Sands after Coastland officially relinquis some of its authorized
density in the manner required by Subsection 4(h) of -$he Permit. Coastland
shall not be entitled to any compensation from theynty or the District
for any such reduction in density, but nothing inT /s agreement shall
prohibit Coastland from receiving some consideration another developer
Y�

Section 6. Financinq of Epansions.
a
(a) Subject to subsection (c), Coastland shall install at its expense
all capital facilities necessary to connect individual lots within the
sections of Ocean Sands to the water distribution mains and sewage
�* collection mains that make water and sewer service available to these
�1 sections. Without limiting the generality of the foregoing, such
"facilities shall include water distribution and sewage collection lines
erving individual lots, laterals, water meters, etc.
(b) Subject to subsection (c), the cost of constructing all other new
caps al facilities necessary to provide water and sewer service to Ocean
Sams shall be borne by the County (or the District as the successor for
the unty) and shall be paid for out of revenues generated by the
develVAent, except that the County shall apply for any federal or state
funds ilable for water and sewer purposes and shall make those funds
ayailab to the District and shall otherwise deal with Ocean Sands and the
District a fair and impartial basis relative to other County -owned or
District-6fted water or sewer systems operated within Currituck County.
Except as Vqvided for herein, the County shall be under no obligation to
transfer Co % funds to the District or otherwise expend County revenues
to fund or 40port the water or sewer systems serving Ocean Sands. For
purposes of this subsection, "revenues generated by the development" means
monthly service charges, impact fees, or other fees and charges paid by
Ocean Sands property owners who are customers of the water and sewer
system, property es levied under Article 16 of G.S. Chapter 153A, or
Article 6 of G.S. apter 162A, and paid by Ocean Sands property owners,
or other revenues dVAved from the Ocean Sands property owners as a result
of water or sewer ser®ce and not generally paid by other County residents.
(c) The parties rnize that substantial fill material may have to
be added to Section Y aperhaps other areas to make the waste treatment
facilities operate propeijy'. Coastland shall be responsible for providing
such fill to the County Coastland's expense in accordance with this
subsection: *
(1) If Coastland is u essful in obtaining permission from
appropriate federal dF state agencies to construct a marina in
Section Y, and if the ma erial removed to create the marina can
satisfactorily be used a fill material (sand or dirt), then
Coastland shall bear the st of digging out said materials and
stockpiling it ready for r transportation. The County shall
bear the cost of transpor this fill material to the sewage
treatment site and unloading �k
(2) If the material from the propo� marina site is suitable for fill
but Coastland has not received ission to construct a marina by
the time the County needs the j� material, or if the material

Q
Bou 230 PAGE 608 9
from the proposed marina site is unsuitable for fill, then
Q� > Coastland shall still be responsible for making necessary fill
`C material available to the County within the Ocean Sands
development at no charge, but the cost of removing and
transporting such borrowed material shall be borne by the County.
In such event, the County shall exercise due care to leave the
0 premises except for the excavated area as nearly as practicable in
the condition it was before such removal.
(3) stland's responsibility to make fill "available" within Ocean
s under this subsection shall mean making available to the
Co access to the fill materials without undue burden or
exp e. However, Coastland's obligation to provide fill within
Ocea Sands shall not extend to any undertaking that is
econ ically infeasible, meaning any undertaking about which
reasonable minds would not differ that the cost of providing fill
in that manner is excessive to the extent that it would be utterly
unreasonable and unrealistic to require Coastland to provide fill
in that m nV;r, considering the benefit to the County and the
effect upon le marketability of Coastland's property.
(d) The County consistent with sound and accepted utility
management practices, a lish and revise from time to time a schedule of
rates and charges suffici to meet its expenditure obligations.
(1) To the extent rea3 bly possible, the cost of capital expansions
shall be paid forjth funds derived from impact fees or the
issuance of bonds, en bonds are issued, impact fees shall be
established at a rateg0easonably calculated to provide sufficient
funds to cover a subntial portion if not all of the bond
payments, except that i pact fees shall not be set at unreasonably
high levels considering s h factors as the comparable cost of
providing water and sewerrvice by wells and septic tanks and
the amount of impact iQs charged by other Outer Banks
communities. 0
(2) Revenues from monthly servic harges shall generally be used
primarily to cover operation maintenance expenses and to a
lesser extent to provide capital erves or make bond payments.
(3) The District shall establish its Ormenue structure to minimize
(and eliminate if possible) the degree to which ad valorem taxes
must be levied to establish capital revenues, make bond payments,
or cover operating costs.
(4) Before increasing monthly service charg or impact fees, the
County shall provide to Coastland thirty, ys written notice of
the intent to increase such fees or charges.
Such increases shall
not become effective until thirty days aftQ Coastland receives
such notice or until the County receives`( stland 's written
comments on such increases, whichever occurs ea oer.
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systems when peak usage of the systems reaches approximately 80X of
capacity. Decisions on the size of any plant expansions shall be made in
VIC, recognition of the County's obligation to expand the plant as necessary to
keep pace with development while avoiding the capital and maintenance costs
�• associated with excessive expansion. To this end, the County shall adopt
policies to ensure that, whenever Coastland or a successor purchaser of a
tract requests expansion of the water and sewer systems to accommodate new
development, the County is protected from the risk of undertaking the
Q) expense of the expansion and then not having the development occur, to the
�Atriment of the ability to pay bonds issued to finance such expansion. in
addition to other policies that may be adopted to accomplish the foregoing
ob,.kctive, the County shall adopt a policy that provides that, whenever a
deroloper submits a written request for an expansion, the County shall
pr d with the requested expansion using all due diligence so that
servcan be provided as soon as reasonably possible but not later than
two s after the date of the request, if:
(1)%jhe expansion can be financed through the sale of bonds (to the
( veloper or other purchasers) or funds for the expansion are
o erwise available; and
(2) Th developer makes a commitment to connect dwelling units or
other development to the system according to an agreed upon
schedule and to pay applicable fees (including without limitation
impact fe s and monthly service charges), to the extent necessary
to assu ' that, if the proposed development or other development
does not ugh
e requested capacity, the County will recover its
capital ead ongoing maintenance costs, and provides adequate
security a letter of credit, deed of trust on the
property detOlOped, or other means) satisfactory to the County to
guarantee thitleommitment.
(f) All in -tract i��,qs and other facilities shall be constructed in
accordance with the poli M , and specifications of the County. Lines and
other facilities not conWucted by the County, together with necessary
easements, shall be dedica* to the County before connection is made to
the systems operated by the nty. Upon dedication, the County shall be
responsible for maintenance of such lines and other facilities.
(g) Any agreement betweed6khe County and a contractor for the
construction of water or sewer (Jacilities shall contain schedules for
completion and penalty provisions.
Section 7. Location of Utility ilities.
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BOOK 23 U PAGE 610
I�
(a) while Coastland shall convey to the County easement rights to
�o struct and maintain utility facilities within all common open space
as of Ocean Sands as provided in subsections 2(a)(2) and 2(e) of this
agreement, the County's discretion to locate such facilities within such
openApace areas shall be subject to the provisions of this section.
Q Sewage treatment facilities (including underground distribution
lines)(ased to provide service to all sections other than Sections G and T
shall, the extent possible, be located within Section V. Sewage
treatmen acilities used to provide service to Section G shall preferably
be locate ,,�((ithin Sections V or G, and sewage treatment facilities used to
provide segye to Section T shall prefereably be located within Sections
V, T, or S.,
(c) If rotary distributors are required to be used to provide adequate
sewage treatment and such distributors cannot be confined within Sections
V. G, and T, then such rotary distributors shall be located within reserve
utility open space eas (i.e., the shaded areas shown on the Master Plan)
to the extent possi.
(d) Coastland athe County expect and plan that the proposed water
desalinization treatm nd storage facilities will be located in the open
space area between Sec i ns H and I as shown on the Master Plan (drawing
MP2). However, shouldMe County be prohibited for any reason from
locating these facilitie y b the indicated area, then it is acknowledged
that such facilities may placed in the open space set aside within
Section G in a location appt,� by Coastland.
e) Before locating or *m i g a contractual commitment to locate any
above ground utility facilitiesmtside Section V, the County shall provide
Coastland with at least thirty days written notice of the County's intent
to place described facilities in identified location. Coastland may
then provide the County, orally in writing, with any comments or
suggestions it may have on the Cou 's plans. The County may not act to
implement its proposed plans until thirty day period has expired or
until it receives Coastland's written t*l ents, which occurs earlier.
Section 8. Detailed Plan for Provi Service.
(a) The County shall prepare or haveyl,*"pared for it (and furnish to
Coastland) a complete plan for how water and4ewer service will be provided
to meet the County's obligations under this agreement. This plan shall
include analysis of how the costs associated with constructing, operating,
and maintaining the proposed system are to be financed. Within ninety days
following the execution of this agreement, th County shall provide
Coastland with a written summary of the proposez lan, setting forth the
alternatives under consideration, the projected Istope of the plan, and
estimated taxes, fees, and rates. A complete p1 hall 'be provided to
Coastland within one year after execution of this ag nt.
(b) The purpose and intent of this subsection is\ -Mt to require the
County to prepare complete design and construction \Awawings for the

can responsibly and in a timely fashion meet its obligations under this
agreement.
(c) The plan required under subsection (a) shall be updated annually
(and a copy furnished to Coastland) until Coastland has sold 90% of the lot
area within Ocean Sands or until the passage of twenty years, whichever
occurs first.
v(d) The County's obligations under subsection (a) shall be contingent
p9n compliance by Coastland with the provisions of Section 2(b) of this
a reement.
4tion 9. Miscellaneous County Oblieations.
(a In consideration of the conveyance to the County of the easement
rights scribed in subsections 2(a)(2), and 2(e) of this agreement, the
County l:
(1) in five days after it receives the tax payment specified in
su ction 2(a)(1) and the deeds of easement described in
Ssub mo�ttion 2(a)(2), transmit to Coastland a check in the amount of
$94,$03.30.
(2) Within five days after it receives the tax payments specified in
subsection 2(b), transmit to Coastland a check in the amount of
$29,808. 596
(b) Within fivlo days after receipt of the documents specified in
subsections 2(a)(3), &)(4) and 2(a)(5), the County shall, by and through
its attorney, Michael rough, execute and file with the North Carolina
Court of Appeals the "M � " to Withdraw Appeal" attached hereto as Exhibit
C. \->.
(c) As soon as the Moro Carolina Court of Appeals allows the parties'
Motion to Withdraw Appeal a".&'remands the action to the Superior Court of
Currituck County, the County #011, by and through its attorney Michael S.
Grough, execute and file wiq �he Superior Court the Motion to Vacate
Judgment and Enter Consent Juifgment, Motion to Amend Complaint and Add
Party Defendant, and the proposed Consent Judgment, attached hereto as
Exhibits D, E1, and f respectivel;D
(d) Within ten days after the\Dislct),
t has been finally established
under G.S. 162A (i.e.. the 30 day pappeals regarding the creation
of the District has passed withouor any appeal filed has been
finally resolved in favor of the the County shall record an
instrument or instruments conveyingistrict all the County's right
title, and interest in the waterr systems (including all real
property interests conveyed by Coaq� the County pursuant to this
agreement). C
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• BOOK 2 3 U PAGE 612 13
Q? (e) The County shall actively support Coastland's efforts to obtain
rmission from relevant state and federal agencies to develop Section Y as
marina. At Coastland's request, the County shall act as a co -applicant T
with Coastland to obtain necessary permits, but Coastland shall bear the
re risibility for and cost of preparing and filing required permit
app ilBaations.
(i' The County shall actively support an effort to make liquor by the
drink " lable within at least the Ocean Sands portion of the Outer Banks.
(g) County shall install and maintain sufficient landscaping or
other buffing devices so that all utility facilities are properly
screened ye4+C round from the view of adjacent properties and streets.
Evergreen screening shall be a minimum of five feet tall within three years
of planting. In addition, lines providing electrical service to such
existing and future facilities shall be run underground if located in any
section where seco dary electrical service is otherwise run underground.
If any utility f�lity or overhead line is abandoned by the County, it
shall be cleaned 44 d removed at the County's expense.
(h) Any easemen�{� r open space areas granted or dedicated to or for
the benefit of the Coy that are not required under the Permit and are
not reasonably necessar\(`to provide utility services to Ocean Sands as
contemplated under the Permit and this agreement shall, at Coastland's
request, be reconveyed by fqe County to Coastland.
Section 10. Rights and •li ations of District as Successor toCount
that; y.
(a) The parties to this ement expect, and the County will assure,
(1) The District will exec an instrument accepting all of the
County's obligations undeQthis agreement in consideration of the
County's conveyance to the strict of the County's right, title,
and interest in the water sewer systems and related property
interests as provided in Sub ion 3(c).
(2) The District will, as soon as ronably possible, seek authoriza-
tion from the qualified voters the District to issue bonds to
finance the proposed expansion c�N the water and sewer systems
necessary to serve the District.
(b) Upon assuming the County's obligations under this agreement, the
District shall also succeed to all of the County's rights and prerogatives
under this agreement. G
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Y•
c�

treatment facilities as well as -water storage facilities, so ~long as such
0 relocation impose no additional capital or operating costs on the County
and does not otherwise prejudice the County in any way.
�- Section 12. Abandonment of Claims.
(a) Coastland and the County hereby mutually cancel and terminate and
abandon all claims (monetary and otherwise) arising out of that certain
Oreement between the parties, entitled "Developer and County water and
r Agreement," dated May 7, 1973, relating to provision by the County of
w er and sewer services to the Ocean Sands development.
Coastland hereby abandons any rights or interest it may have to
develilits property in accordance with or pursuant to the conditional use
permit sued by the County on March 20, 1973, for a planned unit develop-
ment kn as Ocean Sands and further abandons any claims against the
County ( etary or otherwise) resulting from any alleged deprivation of
rights ar g out of the issuance of this permit.
(c) The�Foregoing abandonment of claims is specifically made con-
tingent upon tip creation of the District as set forth in Section 4 of the
agreement and he acceptance by the District of the County's obligations
under this agreement as set forth in Section 7. In addition, the foregoing
abandonment of claims may be rescinded by either party if a court of
competent jurisdicti n, in a final judgment, invalidates either the Permit
or this agreement, �jrovided that before such rescission becomes effective
Coastland shall ret to the County any payments made under subsection
9(a) of this agreem and the County shall reconvey to Coastland any
easement rights conve ursuant to subsections 2(a)(2) and 2(e) of this
agreement.
Section 13. Obligati •to Run with the Land.
It is Coastland`s in tion that the obligations undertaken by
Coastland with respect to th 678 acre tract described in Exhibit A shall
run with the land and shall be(inding on successors or assigns who acquire
any portion of this property � undeveloped acreage. Coastland further,
understands and acknowledges th this settlement agreement as well as the
Permit shall be recorded and intend that any such purchaser of undeveloped
acreage shall, as a condition of spurchase, be bound by all applicable
terms of this agreement and the Perne.
Section 14. Agreement Not for Beo 't of Third Parties.
This agreement is solely for the bfit of the parties to it, and no
person or entity other than one of the paOtHes hereto shall seek to enforce
the agreement against a party or claimy benefit from either party
arising out of the provisions of this ag �ent unless such person is a
O
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Y�OVx�
�. BOOK 2 3 U PAGE 614 i5
CZ
N s'ccessor to the rights and obligations of such party or, by contractual
4r ement, such person or entity is acting on behalf of such party. By way
ofrillustration without limitation, no person or entity other than
Coastland or its successors or assigns who acquire undeveloped acreage may
seek
or otherwise benefit from any commitment made by the County
in tSenforce
agreement concerning the manner in which water and sewer services
are e provided or fees and charges levied to finance such services.
15. Effect of Incorporation.
The pa es agree that, if the portion of the Outer Banks where Ocean
Sands is io d should be included in any municipal corporation created on
the Curritucir%ter Banks, all rights under this agreement and the Permit
shall be regard as vested and may not, without Coastland's consent, be
adversely affe ed by any zoning or subdivision ordinance or other decision
adopted by such newly incorporated municipality. The County agrees to
attempt to have a provision incorporating the substance of this section
included in any spec al legislation passed by the General Assembly that
incorporates such m ipality.
Section 16. Arbii+f ion.
Notwithstanding thatC ine terms of this Settlement Agreement are to be
incorporated in and may "'INnforced pursuant to a Consent Judgment to be
filed in the state suit, 'parties agree that on notice given by either
of them, any controversy h after arising between them relating to this
agreement (except a claim b ;44astland based upon an alleged breach by the
County of the covenant contVTned in Section 17) or to the failure or
refusal to perform the whole 0 any part thereof, shall be submitted to
arbitration under the terms of t Uniform Arbitration Act, G.S. § 1-567.1,
et seq. Notice of intent to a bitrate given by one party to the other
sfia�Tll be effective if in writing a delivered to the other, or mailed to
the other, at the address stated the signature page hereto, within a
reasonable time after such party beQmes aware of the existence of such
controversy. Such notice shall not b" nsidered untimely solely by reason
of its having been delivered or maileej by either party) within the time
for filing of answer to a complaint f i p4, wherei n some part or all of the
same controversy is asserted as grounds fW. a civil action. Any such civil
action shall be stayed pending arbitrat' which is timely invoked by
either party, unless on motion of the other Ar y the Court shall otherwise
order for reasons it finds compelling. l
Section 17. Covenant of Validity.
The County covenants that it has complied
with all statutory
requirements to ensure that this agreement ia valid and binding
obligation upon it and that it has received the itten opinion of its
counsel, Michael 8. Brough, to that effect. O

0 implement the foregoing agreement.
`A\ Section 19. Notice.
�• Notice to either party shall be effective if mailed to the address set
forth in the introductory paragraph to this agreement.
0
YI*

V
�AASTLAND CORPORATION
amei o nson,�resen
Attu. :
,7cpr:�• ��� f•• A
BOOK 2.1 A
PAGE 616 17
OCEAN SANDS, INC. �v
By:
ames nson, res
Attest:. i
Attest: &hj44,'_1jj.
The undersigned James Johnson executes this agreement individually to
acknowledge his obligations under Sections 2(c) and 2(d) as well as his
obligation to execut_q the Answer set forth as Exhibit E3 and the Consent
Judgment attached axhibit F.
`A, ramae` s Johnson - r��I V 'N
vkl
SEAL -STAMP
NUlrxi IKSAXpl>y NXIMAXIS STATE OF VIRGINIA. COUNTY OFT44-CESS ANNE
I, a N tart' Public of the�unty and State aforesaid, certify that
* �14zd - h , personally came before me this day and
ac now a ge a s e s Secretary of COASTLAND CORPORATION, a
North Carolina corporation, an ly authority duly given and as the act
of the corporation, the foregoing ir@rument was signed in its name by its
President, sealed wj�q its corporate seal and attested by
its cretary. Witness my hand and
OTTICIal stamp or seal, this ay lg
2.
NOTARY PUBLIC
My comnission expires:
STATE OF NORTH CAROLINA
COUNTY OF CURRITUCK
I, a notary public of the county and state aforesaip ertffy that -Eileen
M. Wirth personally appeared before me this day and acledgec:th�� s31e►-is
clerk to the Board of Commissioners and that the foregoi�koe7ot as 'i*g'gpd
by Frances Walker and attested by Eileen M. Wirth as cler �T a t'�dr9
the official action of the Board in issuin the permit on
NOTAR PUBLIC '�,•
My commission expires 9-29-90. .........
f-
�f
�X

V i, a, notary ruoirc or the country ana aLaLe 6TUrC5410, cer�cr,,f r.na6
O f�, ��, I/Y�; ke h , personally came before me this day and
act obi MUMwleedged 'UM Is — Secretary of OCEAN SANDS. INC., a North
Carolina corporation, and that Vy authority duly given and as the act of
\A the corporation, the foregoing instrument was signed in its name by its
President, sealed with its corporatg seal and attested by
as its Secretary. Witness my hand and
c a' stamp or seal, this_ ay o 19 ram.
My comP.4ion expires: /t%/990
The `fY oing instrument
the Local*rnment Budget
r
a E
�O
NORTH CAROLINA, CURRITUCK COUifN
certificates) of
has been pre -audited in the manner required by
and Fiscal Control Act:
n Y-Finance Ufflctr
`, is (are) certified
to be
correct. This Instrument was presented for ie • tration at_PdAo'dock �.
rr��
19_0 1, and recorded in Book _1 Page_.
�Re 'garlofed3
Q gy
Y Deputy Resister of Deeds