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49 <br /> regulations at the time it was originally permitted and thus did <br /> not in fact qualify for the permits DEN issued. They also are <br /> informed and believe that some of the deficiencies in the existing <br /> system result from the fact that the system was not built in <br /> accordance with the plans and specifications submitted to DEM, and <br /> that the system has not been monitored as required by the <br /> applicable state regulations and the DEN permit. They also are <br /> informed and believe that if the system had not all state <br /> requirements when DEN permitted the system, and if ttie system had <br /> been built in accordance with the plans and specifications <br /> submitted and monitored as required by state law, it would be <br /> adequate today to serve 58 lots in the subdivision. <br /> 10. At the time DEN issued the permits described above and at all <br /> relevant times subsequent, DEN knew the Piney Mountain sewerage <br /> system was to serve a subdivision with 58 lots needing the service <br /> and that purchasers of the lots would rely on DEN to require that <br /> the system was built with adequate capacity and quality to serve <br /> the lots. DEN also knew that the purchasers would rely on DEM to <br /> insure that the system was built in accordance with the plans and <br /> specifications approved by it and was adequately monitored after <br /> operation began. <br /> 11. At the time claimant and the other property owners in the <br /> subdivision bought their lots, they were informed by the developer <br /> of the subdivision or his agent that North State had constructed or <br /> was constructing a community sewerage system to serve the Piney <br /> Mountain subdivision. They also knew that the State of North <br /> Carolina required that North State obtain a permit to construct and <br /> operate such a system. Claimant relied on the fact that the system <br /> had been approved by DEM or would have to be approved by DEK in <br /> determining that the lot claimant planned to purchase would have <br /> adequate sewer service and thus would be suitable for use as the <br /> site of a residence. <br /> r <br /> 12. Claimant is informed and believes that DE through the <br /> actions of its employees listed in paragraph 1 , ra. , was <br /> negligent in permitting the North State system for construction and <br /> operation in the following respects: <br /> a. DEN permitted the system to serve 58 lots in the <br /> subdivision even though the plans for the system were <br /> based on a projected capacity lower than that required by <br /> DEN's own applicable regulations and insufficiently low <br /> given the size of homes planned for the subdivision and <br /> the quality of the soil in the subdivision. DEN <br /> continued to permit the system for 58 lots even when <br /> homes were built in the subdivision of a size much larger <br /> than the average size projected by North State, even <br /> though it was probable that the system would not have <br /> enough capacity to serve all the homes planned in the <br /> subdivision. <br /> wtsZoiui�-0oz\oosztuti�i-�a 3 <br />