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c. Utility and Developer agree that if an irrigation service is required to maintain <br /> common open space for the Subdivision, Developer, at Developer's cost, shall have <br /> the Developer's engineer incorporate the irrigation services(s) into the Water Plans. <br /> Furthermore, Developer shall be required to provide water production in the amount <br /> of 1.5 gpm per SFRE pursuant to Paragraph 0 of this Agreement. Developer, at <br /> Developr's cost shall obtain all irrigation permits required by Orange County. <br /> 2.2. Installation Requirements. Developer shall pay for all costs associated with the <br /> construction and installation of the Water Utility System. Utility reserves the right to make <br /> periodic inspections of the Water Utility System installation. Such inspection should not be <br /> considered a substitute for the Developer's engineer's duties and responsibilities to inspect <br /> the installation. As required by North Carolina General Statute Section 130 A-317 and Rules <br /> Governing Public Water Supply Systems, North Carolina Administrative Code 15A NCAC 18 C. <br /> 0305(a), neither Developer nor Utility shall construct or begin construction of any portion of <br /> the Water Utility System prior to approval of the Water Plans by DEH or prior to the issuance <br /> of an Authorization to Construct by DEH. However, upon well site approval by a <br /> representative of DEH, it is acceptable to drill the wells, perform the required 24-hour well <br /> drawdown tests, and obtain the well water analyses as all are required for the submittal of <br /> the Water Plans to DEH. Any penalties assessed against the Utility (as the applicant for the <br /> water system), the Engineer, or the Developer by DEH as a result of the Developer installing <br /> all or a portion of the Water Utility System without DEH approval (i.e. construction beginning <br /> prior to DEH issuing its Authorization to Construct) shall be paid by Developer prior to <br /> meters being installed or water service being provided in the Subdivision. <br /> 2.3. Production Requirements. Developer shall provide one or more wells with well <br /> production facilities which together, based upon the 24 hour well drawdown tests required <br /> by DEH, shall provide at least 1.5 gpm for each residential service in the Subdivision. <br /> Production required for irrigation of common open space shall also be 1.5 gpm for each SFRE <br /> as set forth in Paragraph 0. Because it is the experience of the Utility that well yield may <br /> gradually diminish over time, Developer, at Developer's cost, shall conduct a new 24-hour <br /> well drawdown test on any well that has not been constructed and placed in service within <br /> two (2) years of the date of the original 24-hour well drawdown test date. Upon completion <br /> of the new drawdown test and the well being placed in service, Developer shall be given <br /> production credit based on what the current 24-hour well drawdown showed in the well. <br /> 2.4. Analytical Testing Requirements. Utility, as its investment, shall pay for the <br /> initial analytical testing completed for each well that satisfies DEH requirements for a <br /> community water system and is approved by DEH to be used to provide water service to the <br /> Subdivision. Developer shall pay all costs associated with the initial analytical testing for <br /> each well that does not satisfy DEH requirements for a community well. Developer further <br /> 5 <br /> Dunhill Water Utility System <br /> Dunhill Agreement 061212.doc <br />