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2 <br /> Beginning in 1987, the Piney Mountain waste treatment <br /> system was permitted, constructed and operated by its <br /> owner, North State Utilities Inc. or its subsidiaries, <br /> which also owned and/or operated nine other similar systems <br /> located in Wake, Durham and Mecklenburg Counties. The <br /> Piney Mountain system was originally designed and permitted <br /> to serve all of the homesites within the subdivision. <br /> North State initially permitted and operated the Piney <br /> Mountain system and its other systems under the regulatory <br /> jurisdiction of the NC Division of Environmental Management <br /> (DEM) and the NC Utilities Commission. Regulatory <br /> authority over permitting and operational oversight for all <br /> ground absorption systems was transferred to the NC <br /> Division of Environmental Health (DEH) and local health <br /> departments in July, 1992. At that time, and in accordance <br /> with its new regulatory responsibilities associated with <br /> the Piney Mountain waste treatment system, the <br /> Environmental Health section of the Orange County Health <br /> Department opened communications with North State <br /> Utilities. The operating permit for the Piney Mountain <br /> treatment system was due to expire on January 31, 1993 and <br /> was to be renewed under the jurisdiction of the OC Health <br /> Department. As a part of the permit renewal process, the <br /> Environmental Health section began reviewing the Piney <br /> Mountain system's existing permit and permit requirements, <br /> design, remaining or unused treatment capacity, physical <br /> plant condition, operational practices, etc. During this <br /> process, the Environmental Health Section discovered that: <br /> a) the system was not constructed in accordance with either <br /> approved or as-built construction plans; b) did not contain <br /> sufficient nitrification line necessary to accommodate <br /> permitted waste flow; c) the number of existing bedrooms <br /> (and resulting regulatory waste flow loadings) per home <br /> averaged far in excess of the three bedrooms per home <br /> envisioned in system design and permitting; d) permitted <br /> total waste flow capacity was insufficient to serve all of <br /> the homesites intended to be served by the systems; <br /> e) sufficient nitrification field repair area was not <br /> available as required by current or original permit <br /> standards; and f) the system was receiving improper or <br /> inadequate monitoring and maintenance. All concerned <br /> parties were kept abreast of the Environmental Health <br /> section's findings. As a result of these findings, the <br /> Health Department declined to renew the system's operating <br /> permit or issue improvement permits for the septic and pump <br /> tank step systems for individual home sites. Environmental <br /> Health staff continued to work with North State to <br /> determine how the system's operating permit could be <br /> renewed. During this process, North State Utilities was <br /> directed to provide necessary information on the system, <br /> make specified repairs and modify its operational and <br /> maintenance practices. <br />