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3 <br /> In November 1992, while the Environmental Health section <br /> was involved in the early stages of the discovery process <br /> related to the regulatory and operational issues outlined <br /> above, Dennis Osborne, president of North State Utilities, <br /> resigned. His resignation deprived North State of its <br /> resident expert on the design and operation of ground <br /> absorption treatment systems. North State and its <br /> treatment system operating subsidiary continued in business <br /> under the direction of its vice-president. In early April <br /> 1993, North State's communications with several local <br /> health departments began indicating that the company was <br /> preparing to dissolve and abandon ownership and operation <br /> of all of its waste treatment systems. In July 1993, North <br /> State petitioned the NC Utilities Commission to be allowed <br /> to abandon all of its systems. This petition was never <br /> granted or denied but, in September 1993, Harrco Utilities <br /> was appointed by the Utilities Commission as the emergency <br /> operator for the Piney Mountain- treatment system. <br /> Prior to North State Utilities' July 1993 petition to <br /> abandon the Piney Mountain system, members of the Piney <br /> Mountain homeowners' association, including owners of homes <br /> and unimproved lots, had retained the services of an <br /> attorney and a professional engineer with ground absorption <br /> waste treatment expertise. Individual homeowners, the <br /> homeowners' attorney and engineer worked with staff from <br /> various County departments to determine how the treatment <br /> problems at Piney Mountain could be corrected. Once Harrco <br /> Utilities was appointed emergency system operation, its <br /> staff also became active in efforts to resolve problems. <br /> During the summer of 1993, an engineer working with the <br /> Piney Mountain homeowners began the process of evaluating <br /> various options for providing adequate waste treatment <br /> for both the existing homes and the undeveloped homesites <br /> within the subdivision. The engineer estimated that costs <br /> to correct the readily apparent design and construction <br /> flaws in the existing Piney Mountain system would be in the <br /> $50,000 to $100,000. Due to a significant possibility of <br /> undetected damage to the soils of the nitrification fields <br /> resulting from chronic overdosing and neglect, the engineer <br /> could not guarantee that recommended repairs would allow <br /> the system to function adequately for any length of time. <br /> The homeowners' attorney subsequently made a preliminary <br /> inquiry to the Durham City Engineer regarding the <br /> connection of the Piney Mountain sewer collection system to <br /> Durham's sewer system by means of a pumping station and <br /> force main. The City Engineer indicated that this was <br /> possible, but that OWASA would have to agree to this <br /> service extension in conformance with provisions of the <br /> existing service area agreement between Durham and OWASA. <br /> During discussions with County staff, the attorney and <br /> consulting engineer were informed that extension of <br /> municipal sewer service to any point within the Rural <br />