THE SANITARY BOARD OF THE CITY OF CHARLESTON SB WEST VIRGINIA

May 5,2009

Ms. Sandra Squire Executive Secretary Public Service Commission of West Virginia 201 Brook Street Charleston, WV 25301

Re: Alternate Main Line Extension Agreement Between the Sanitary Board of the City of Charleston, West Virginia And Millennium Group, LLC for the Proposed Double Eagle Subdivision

Enclosed please find one (1) original and twelve (12) copies of an Alternate Main Line Extension Agreement between the Sanitary Board of the City of Charleston (CSB) and Millennium Group, LLC, for an extension of CSB existing sanitary sewer to serve eighteen (37) residential lots at the proposed Double Eagle Subdivision. We request review and approval of this agreement.

We are currently providing a copy to the Developer and Design Engineer at the addresses shown below and will provide copies of any and all future correspondence to them regarding this request at the same addresses.

Should you have any questions regarding this information, please do not hesitate to call us.

Very truly yours,

CHARLESTON SDANITARY BOARD

% Tim G. Haapala, P.E. Operations Manager

Cc: Larry Roller, CSB (w/o encis.) Susan Riggs, Spilman Thomas & Battle

Millennium Group, LLC P.O. Box 3698 Charleston, WV. 25336 Attn: Mr, Frank Baldwin

King Engineering and Land Surveying Co. 1992 Parkwood Road Charleston, WV 253 14 Attn: Mr. Dennis King, P.E.

1 P.0 , Box 1026, Charleston, WV 25324 208 26th Street, Charleston, WV 25312

: #WV3302016

OFFICE OF IRONMENTAL HEALTH SERVICES CAPITOL and WASHINGTON STREETS, 1 DAVIS SQUARE, SUITE 200 CHARLESTON, WEST VIRGINIA 25301

TELEPHONE 304-558-298 I

PERMIT (Sewer and Water)

: Double Eagle Development RMITNO.: 18,116

N: near Davis Creek COUNTY: Kanawha : 9-30-2008

CERTIFY that after reviewing plans, specifications, application forms, and other essential information that

Millennium Group, LLC P. 0. Box 3698 Charleston, West Virginia 25336

va~ to: install approximately 4,298 LF of 8" and 6 P

LF of 6" Sewer line; necessary outs, approximately 365 LF of 2" force main; five (5) simplex e existing Charleston Sanitary Board sewage facilities. Also LF of 6" and 867 LF of 2" water lines and all necessary val

er to be provided by the West Virginia American Water Company.

Facilities are to initially serve 38 residential customers in the Double Eagle Development

NOTE: his permit is contingent upon: 1) All new w line being disinfected, shed and bacteriologically tested, prior to

minimum ten (10) feet horizontal separation b lines and a minimum 18" vertical separation between crossing sewer and water lines, with the water line to be over the sewer line.

The Environmental Engineering Division of th

Validity of this permit is contingent upon conformity with plans, specifications, application forms, and other information submitted to the West Virginia Bureau for Public Health.

en construction begins.

FOR THE DIRECTOR

Infrastructure and Capacity Development Environmental Engineering Division

pc: WSH: z n g i n e e r i n g & Land Surveying Co. Tim G. Haapala, P.E., Charleston Sanitary Board Mark Shamblin, WV American Water Company Katheryn Emery, P.E., DEP James W, Ellars, P.E. Amy Swann, PSC Kanawha-Charleston Health Department OEHS-EED St. Albans District Office

ALTERNATIVE MAINLINE EXTENSION AGREEMENT

This Agreement is made and effective this day of ,2009 by

and between the Sanitary Board of the City of Charleston, West Virginia (“CSB”) and

Millennium Group, LLC (“Developer”).

WHEREAS, CSB has been authorized by City Ordinance Chapter 25 to develop

sewage collection and treatment facilities throughout the City of Charleston, West Virginia, so as

to provide the greatest number of City of Charleston and vicinity residents and businesses with

public sewers; and

WHEREAS, CSB wishes to make public sewage collection and treatment

facilities available to the greatest number of residential (or commercial and/or industrial)

customers located within the City of Charleston and its vicinity as expeditiously as possible; and

WHEREAS, Developer is planning to develop certain lands known, or to be

known as, Double Eagle Development, (the “Development”) within CSB’s service area for use

as residential property; and

WHEREAS, the initial estimate of the cost of the sewage collection system to be

built by Developer is $445,200.00; and

WHEREAS, Developer intends to construct 1,800-If of 8-inch DIP gravity sewer

main; 2,553-1f of 8-inch SDR-35 PVC gravity sewer main; 436-1f of 6-inch SDR-35 gravity

sewer lateral; 30-each standard pre-cast concrete manholes; 3-each interior drop, pre-cast

concrete manholes; 1 -each end of line clean-out assembly; and 37-each house connections to

serve 37 residential lots at Double Eagle Subdivision. It is understood by both parties to this

Agreement that any substantial increase in the number of residential units or equivalent

Double Eagle SubdiiYsion AMLEA Maji 4. 200Y

residential units will require the submission of a separate Alternative Mainline Extension

Agreement to the Public Service Commission of West Virginia for its consent and approval; and

WHEREAS, the planned development of Developer’s property is contingent

upon Developer having proper sewage collection and treatment facilities; and

WHEREAS, it is in the best interests of the future users of Developer’s property

to have public sewage collection and treatment facilities available; and

WHEREAS, Developer is willing to bear the expense of making public sewage

collection and treatment available in the aforementioned development;

NOW, THEREFORE, for and in consideration of the covenants and agreements

set forth herein, and of other good and valuable consideration, the receipt and sufficiency of

which are hereby acknowledged, CSB and Developer agree:

ARTICLE I

DESIGN

Section 1.01 Developer hereby agrees to employ qualified engineers, registered

in the State of West Virginia (“Developer’s Design Engineer”), to design a sewage collection

system pursuant to sound engineering standards and in accordance with CSB’s design

requirements to provide satisfactory sewage collection within the Service Area, which is

described and depicted in Exhibit 1, a copy of which is attached hereto and made a part hereof

(“System”). Said design will be developed at Developer’s expense. CSB shall bear no financial

or other responsibility for the design of Developer’s System.

Section 1.02 Developer must obtain CSB’s written approval of the design and

specifications of the System prior to Developer’s submittal of the same to the Bureau for Public

Health, or if a Bureau for Public Health permit is not required, prior to the start of construction of

Double Eagle Subdivisio~7 AMLEA Maj 4, 2009

2

the System. The System must be designed to: (1) satisfactorily transport the sewage from the

Service Area in accordance with the terms of this Agreement and all applicable statutes, rules

and regulations and CSB design standards applicable to CSB‘s and Developer’s project; (2)

minimize infiltration; and (3) eliminate illegal and improper sources of inflow. CSB may require

such revisions of said design and specifications as CSB feels are necessary before giving

approval.

ARTICLE I1

CONSTRUCTION AND INSPECTION

Section 2.01 Developer will construct the System under this Agreement,

including, but not limited to, all main lines, trunk lines, laterals, pumping facilities, or other

necessary appurtenances, for all proposed customers within the Service Area. Developer shall

obtain, at Developer’s own expense, all necessary permits, authorizations and approvals of state

and federal agencies and other city departments prior to the starting of any construction and shall

make such changes as may be required by said agencies and departments, and obtain CSB’s

written approval of such changes, prior to the start of any construction. Developer shall obtain

all necessary rights-of-way and take all other such actions, including, but not limited to, legal

actions, as are necessary to complete the System, at Developer’s own expense. CSB shall take

such actions as are permitted by law to aid in obtaining the necessary rights-of-way, real property

or easements on land not owned by Developer, including, but not limited to, legal actions. The

cost of any of such actions by CSB shall be borne by Developer and Developer shall fully

reimburse CSB for all such costs.

Section 2.02 CSB shall bear no financial or other responsibility for the

construction of Developer‘s System in the Service Area. However, CSB shall have the right to

Double Eagle Subdivisioii AMLEA Ma?, 4, 2009

3

inspect and approve, from time to time during construction, the construction of the System to

insure that: (1) sewage will be satisfactoiily transported from the Service Area in accordance

with the terms of this Agreement and all applicable statutes, rules and regulations legally

applicable to CSB‘s and the Developer’s project; (2) infiltration will be minimized; (3) illegal

and improper sources of inflow will be eliminated; and (4) the System is constructed using sound

engineering and construction standards and using materials in compliance with CSB‘s standards

and specifications. Developer must seek CSB’s prior approval of any changes in material or

design changes to the System which occur during construction. There shall be no cost to

Developer for CSB’s inspection of the System.

Developer shall employ the services of a qualified engineer (“Developer’s

Inspection Engineer”), registered in the State of West Virginia, to provide inspection and testing

services as specified in Exhibit 2, a copy of which is attached hereto and made a part hereof, to

insure that the construction conforms to the plans and specifications approved by CSB. Copies

of the weekly inspection reports and certified air tests shall be provided to CSB at the end of

each week.

Section 2.03 Developer shall continually update during construction of the

System the original plans and specifications provided to CSB. Upon completion of construction,

Developer shall provide CSB reproducible Mylar or electronically formatted copies of “as-built’’

plans for the System. The “as-built” drawings shall be prepared by Developer’s Design Engineer

and shall meet CSB’s requirements for “as-built” drawings. CSB‘s requirements for “as-built”

drawings are set forth in Exhibit 3, a copy of which is attached hereto and made a part hereof.

Section 2.04 At all times during the construction of the System, Developer shall

maintain sole ownership of the System.

Double Eagle Subdivision AMLEA May 4, 2009

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ARTICLE I11

TRANSFER OF OWNERSHIP

Section 3.01 Upon completion of the construction of the System, Developer

shall obtain such state, federal, and local certifications, authorizations and/or approvals as are

required, at Developer‘s expense. After said certifications, authorizations and/or approvals are

obtained, and the System is completed in all respects, Developer shall provide CSB written

notice of said completion. As used in this and subsequent Sections, “completed in all respects”

includes, but is not limited to: (1) the System being physically complete; (2) all testing

performed by Developer’s Inspection Engineer and written reports from such tests provided to

CSB; (3) all engineers, materialmen, contractors and subcontractors of Developer being paid for

their work on the System; (4) all rights-of-way, real property and easements acquired; ( 5 ) all

legal disputes regarding the System being resolved; and (6) no outstanding liens or potential liens

on the System existing.

Section 3.02 Upon receipt of the written notice described in Section 3.01, CSB

shall have thirty (30) days to inspect the System and run such tests, at CSB’s expense (normally

includes visual inspection of manholes, mandrel testing, air testing and proper bedding use), as

CSB feels are appropriate and necessary to determine that the System: (1) has been properly

constructed; (2) will satisfactorily transport sewage from the Service Area in accordance with the

terms of this Agreement and all applicable statutes, rules and regulations applicable to CSB‘s

and Developer’s project; (3) minimizes infiltration; and (4) eliminates illegal and improper

sources of inflow. At the end of thirty (30) days, CSB shall provide to Developer, in writing, a

list of changes, repairs, or additions which CSB believes are necessary to place the System in

good and proper working condition, and a list of other actions which Developer must take so that

Double Eagle Subdhision AMLEA Mny 4, 2009

5

the System is completed in all respects. Developer, at Developer's own expense, shall make said

changes, repairs or additions and take said actions which are directed by CSB. Once said

changes, repairs, and additions have been made and actions taken, Developer will provide CSB

with an additional written notice as set forth in Section 3.01 and CSB shall have the same rights

as it had upon receipt of the initial notice. Developer shall not connect any buildings or other

structures to the System until it has been fully tested by Developer's Inspection Engineer and

CSB, all repairs required by CSB have been made, and CSB has authorized Developer to make

the connections.

Section 3.03 If, after receipt of the notice or notices set forth in Section 3.01,

CSB determines that the System is in good and proper working condition, that no changes,

repairs or additions are necessary, and that the System is completed in all respects, and provides

notice to Developer of such determination, Developer shall deliver, and CSB shall accept,

ownership of the System, including rights-of-way, and all real property and easements necessary

for the ownership, operation and maintenance of the System, using such forms of transfer as

deemed necessary by CSB. The transfer of ownership shall occur no later than fifteen (1 5) days

after the expiration of CSB's right of inspection and testing, set forth in Section 3.02, provided

that Developer has posted the warranty bond as required in Section 5.04.

Section 3.04 Ownership of the System shall be transferred by Developer to CSB

prior to its connection to CSB's collection and treatment system.

Section 3.05 Developer hereby waives all claims to reimbursement for any and

all costs related to the construction of the System, and waives the requirement of CSB to provide

a cost estimate for the System. Developer acknowledges that it has read Rule 5.5 of the Public

Service Commission of West Virginia's Rules and Regulations for the Government of Sewer

Double Eagie Subdivision AMLE.4 May 4, 2009

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Utilities, understands that CSB is required by law to provide a portion of construction costs

associated with providing sewer service to new customers, understands that CSB is required to

provide a cost estimate, understands that the Rule permits alternate arrangements, and knowingly

and voluntarily waives it rights to reimbursement and its right to a cost estimate under said Rule.

A copy of said Rule is attached to this Agreement as Exhibit 4 for informational purposes only.

Section 3.06 Nothing in this Article shall be construed to prevent CSB fiom

accepting ownership of the System a section at a time, provided that CSB shall accept a section

of the System only if said section is complete in all respects, has been tested by Developer’s

Inspection Engineer, tested by CSB, and can be fully operational at the time of the transfer of

ownership of that section, provided further that Developer has posted the warranty bond as

required in Section 5.04. CSB and Developer shall have the same rights and obligations and

shall follow the same procedures established in this Article for the transfer of ownership of the

entire System.

ARTICLE IV

CONDITIONS PRECEDENT

Section 4.01 This Agreement and the respective obligations of the parties are

conditioned upon the approval of this Agreement by the Public Service Commission of West

Virginia.

ARTICLE V

REPRESENTATIONS AND WARRANTIES

Section 5.01 CSB represents and warrants that the execution, delivery, and

performance of this Agreement by CSB will have been duly authorized, and this Agreement

constitutes a valid and binding obligation of CSB enforceable in accordance with its terms.

Double Eagle SubdiiYsioii AMLEA May 4, 2009

7

Section 5.02 Developer represents and warrants that the System will be

designed and constructed in a proper workmanlike manner using sound principles of engineering

and construction and in accordance with the plans and specifications submitted to and approved

by CSB. Developer hereby warrants Developer’s work on the System’s mechanical components,

lift stations and treatment facilities for (1) year from the date of the transfer of ownership to CSB

and will make such changes, repairs and additions, at Developer‘s expense, as are needed to

maintain the System in a proper operating condition. If CSB causes such changes, repairs and

additions to be made, Developer agrees to reimburse all of CSB‘s costs and expenses related

thereto.

Section 5.03 Where the total value of any single replacement, repair or addition

required during the warranty period is equal to or less than Five Thousand Dollars ($5,000.00),

the warranty period for said replacement, repair or addition shall terminate at one (1) year from

the date of the transfer of ownership of the System to CSB. Where the total value of any single

replacement, repair or addition exceeds Five Thousand Dollars ($5,000.00), the warranty period

for said replacement, repair or addition shall be extended to a date one (1) year following the

date of completion of said replacement, repair or addition.

Section 5.04 Upon CSB’s notice as provided in Section 3.03, but prior to CSB’s

acceptance of the System, Developer shall post a one (1) year warranty bond in an amount

sufficient to replace the System constructed by Developer, as determined by CSB. The amount

of the bond shall be $445,200.00 and shall be for a period of three hundred sixty-five (365)

calendar days that will begin on the date ownership of the System is transferred to CSB.

Millennium Group, LLC shall be named as the “Principal” on the warranty bond and

CSB shall be named as the “Obligee” on the warranty bond. The warranty bond shall clearly

Double Eagle Subdivision AMLEA Mav 4. 2009

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indicate the complete contact information of the Principal’s Surety Company for Obligee to

contact, in the event of a default by the Principal on the bond. Additionally, the bond shall state

“The Principal, while faithfully carrying out its guarantee, will promptly repair any and all

defects, when informed in writing by Obligee, and, if within ( 7 ) seven calendar days after the

date of the written notification from Obligee to Principal, Principal does not make the requested

repairs, Principal will be considered in default of the warranty bond.”

ARTICLE VI

CONNECTIONS

Section 6.01 Developer agrees that after the transfer of ownership of the

System, or any portion thereof, to CSB, for each tap or service connection that is completed by

CSB, either the Developer or the customer to be served by the tap or service connection shall pay

to CSB a new service fee in accordance with CSB’s Tariff.

Section 6.02 Developer agrees that after the transfer of ownership of the System

to CSB, CSB has the right to connect to and further extend sewer mains from beyond the

terminus of the mains constructed pursuant to this agreement. In such an event, the Developer

shall not be entitled to any refund for the connection of customers to such extension.

ARTICLE VI1

MISCELLANEOUS PROVISIONS

Nothing in this Agreement shall be construed to make CSB liable Section 7.01

or responsible for any obligations of Developer.

Sectioi? 7.02 Developer hereby agrees to indemnify and hold harmless CSB, its

officers, directors, attorneys, employees and agents, from and against any and all liabilities,

claims, demands, causes of action, costs and expenses of every kind and nature whatsoever

Double Eagle Subdivisioii AMLEA Ma)> 4. 200Y

9

including attorneys’ fees, and attorneys’ fees to enforce this provision and including any injury,

death or damage to any person, property or business (“Claims”), arising out of or related to any

action or inaction by Developer, its agents, licensees, invitees or employees relating to the

System, the property upon which the System is being constructed, or the Development, except

for those Claims caused solely by the negligence of CSB or its officers, directors, attorneys,

employees or agents. Developer will defend at its sole cost any and all proceedings that may be

brought against CSB on account of any such Claims and will reimburse CSB for any

expenditures that CSB may make by reason of any such Claims.

Sectioi? 7.03 Developer hereby agrees to save and indemnify and hold harmless

CSB, its officers, directors, attorneys, employees and agents, from and against any and all

liabilities, claims, demands, causes of action, costs and expenses of every kind and of whatever

nature including attorneys’ fees and attorneys’ fees to enforce this provision, arising out of or

caused by (i) the labor and materials used by Developer, its contractors or subcontractors, agents

or employees upon the System, upon the property upon which the System is located, or the

Development, and (ii) all laborers’, materialmen‘s and mechanics’ liens upon the System, or

upon the property upon which the System is located, or the Development arising out of the labor

and materials used by Developer, its contractors or subcontractors, agents or employees.

Developer shall keep the System and said property freed and cleared of all liens, claims and

encumbrances.

Section 7.04 Upon transfer of ownership to CSB, nothing in this Agreement

shall be construed to provide Developer with any ownership or other interest in the sewage

collection system, which will become the exclusive property of CSB, or with a right to be

reimbursed by CSB for any and all construction costs.

Double Eagle SubdiMon AMLEA May 4, 2009

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Section 7.05 Developer hereby understands and acknowledges that this

Agreement is subject to Rule 5.5.h.1 O.C. of the Public Service Commission of West Virginia's

Rules and Regulations for the Goi~eiwiieiit of Sewer Utilities, and hereby agrees to comply with

the provisions of such Rule as follows:

C. As a condition to obtaining a main extension, any property owner or developer shall grant the utility the necessary easements which would allow the utility to make future extensions into unserved areas. The granting of the necessary easements shall be made without the utility being required to pay additional consideration for the additional easements to the property owner or developer. If the property owner or developer is unwilling to grant the additional easements, the utility shall not be required to extend its main to serve the property owner or developer.

Section 7.06 This Agreement constitutes the entire Agreement between CSB

and Developer with respect to the matters addressed and may be amended only in a subsequent

writing executed by both parties after obtaining the Public Service Commission of West

Virginia's consent and approval of the amendments.

Section 7.07 This Agreement may not be assigned by either party without the

prior written consent of the other party and the consent and approval of the Public Service

Commission of West Virginia.

Section 7.08 The article and section headings in this Agreement are merely for

the convenient reference of the parties and shall not affect the meaning or interpretation of this

Agreement.

Section 7.09 The term of this Agreement is twenty (20) years.

Double Eagle SubdiiYsion AMLEA Ma?, 4. 200.9

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WITNESS the following signatures this day of ,2009.

THE SANITARY BOARD OF THE CITY OF CHARLESTON, WEST VIRGINIA, a niunicipal utility

Attest:

Witness

Attest:

General Manager

[DEVELOPER]

Witness

Double Eagle Subdivisioii AMLEA May 4,2009

[Representative of Developer]

12

EXHIBIT 1

VICINITY MAP

EXHIBIT 2

INSPECTION AND TESTING

The following tests shall apply:

ALIGNMENT AND DEFLECTION TESTS

The alignment test is to make sure the pipe is laid on grade. The deflection test is to ensure that the pipe is not collapsed.

o LIGHT TEST (FOR TESTING ALIGNMENT)

The light test is a check to see that the pipe is properly aligned and not collapsed. The procedure for doing the test is to shine a light into the pipe at a manhole and look into the pipe at the next manhole. If one sees a f i l l circle of light then the test is passed and further testing for alignment is not required.

MANDREL TEST (FOR TESTING DEFLECTION)

A mandrel test will be required for testing all gravity plastic sewer pipe. The mandrel will check for deflected pipe. A mandrel is a rigid round object with a diameter of 95 percent of the inside diameter of the pipe. The mandrel test is accomplished by manually pulling the mandrel through the pipe. Mechanical pulling is not allowed. If the mandrel passes through without resistance then the pipe has passed the test. If the mandrel appears to have passed through a puddle of water further investigation needs to be done to find the low place(s).

INFILTRATION AND EXFILTRATION TESTS

If the pipe is below the water table this check is to ensure that ground water will not infiltrate the line. If the pipe is above the water table this check is to make sure that sewer does not leak out of the pipe.

o LOW PRESSURE AIR TEST

The low pressure air test is performed using the following procedure:

1. Plug both ends of a sewer line using pneumatic plugs. Make sure the plugs are securely blocked. The plug at one end shall have an orifice to allow air to pass into the pipe. The same plug shall have an accurate air gauge having a range of 0 to 10 PSI with minimum divisions o f . 10 PSI.

Double Eagle Subdi\trion AMLEA May4 . 2009

Pipe Diameter, in.

4 6 8 10 12 15 18 21 24 27 30 33 36

Minimum Time, min:s

1:53 2:50 3:47 4:43 5:40 7:05 8:30 9:55 11 :20 12:45 14:lO 15:35 17:OO

2 . Air pressure shall be slowly introduced into the section of the line being tested until the air pressure in the line is 4.0 PSI. A minimum of two minutes shall be provided to allow the air pressure to stabilize within the pipe. Air may be slowly added or subtracted to maintain the 4.0 PSI pressure.

3. After the two minute stabilization period, adjust the pressure to exactly 3.5 PSI. Start the stopwatch. When and if the pressure reaches 3.0 PSI stop the stopwatch. The portion of the line shall pass if the time for the pressure to go from 3.5 to 3.0 PSI is equal to or greater than the time shown on the following table. If the time for the pressure to go from 3.5 to 3.0 PSI is less than the time shown on the following table, then further infiltration/exfiltration testing shall be required on the pipe.

Length for Minimum Time, ft

597 398 298 239 199 159 133 114 99 88 80 72 66

Time for Longer

Length, s

0.190 L 0.427 L 0.760 L 1.187 L 1.709 L 2.671 L 3.846 L 5.235 L 6.837 L 8.653 L 10.683 L 12.926 L 15.384 L

100 ft 1 :53 2:50 3:47 4:43 5:40 7:05 8:30 9:55 11:24 14:25 17:48 21:33 25:39

Specification Time for Length

150 ft 1 :53 2:50 3:47 4:43 5:40 7:05 9:37 13:05 17:57 2 1 :38 26:43 32:19 38:28

200 ft 1:53 2:50 3:47 4:43 5:42 8:54 12:49 17:27 22:48 28:51 35:37 43:56 51:17

250 ft 1 :53 2:50 3:47 4:57 7:08 11:08 16:Ol 21:49 28:30 36:04 44:3 1 53:52 64:06

Y

300 ft 1 :53 2:50 3:48 5:56 8:33 13:21 19:14 26:ll 34:l l 43:16 53:25 64:38 76:55

,) Show:

350 ft 1 :53 2:50 4:26 6:55 9:58 15:35 22:26 30:32 39:53 50:30 62:19 75:24 89:44

In areas where the ground water is above the level of the pipe, the pressure will be increased according to the public utility's specifications. In the event the pipe does not pass, further appropriate investigation shall be conducted and the pipe repaired. After the repair is completed, testing shall be repeated.

INSPECTION SERVICES

min: s

400 ft 1 :53 2:51 5:04 7:54 11:24 17:48 25:38 34:54 45:35 57:42 71:13 86:lO 102:34

450 ft 1:53 3:12 5:42 8:54 12:50 20:02 28:5 1 39:16 51:17 64:54 80:07 9657 115:23

Developer's Inspection Engineer shall be on site on a daily basis to inspect and report on the progress of the work. The Engineer's daily report shall be kept in a log and copies shall be forwarded to CSB on a weekly basis. The Engineer shall be present during lamp, air and mandrel tests and shall certify all test results.

Double Eagle Subdiiiy iori AMLEA May 4, 2009

EXHIBIT 3

“AS-BUILT” DRAWING REQUIREMENTS

1.

2.

3.

4.

5 .

6.

7 .

8.

9.

10.

Upon the completion of construction and prior to acceptance of the System by CSB, the Developer shall provide “as built” drawings showing how the System was finally constructed. If the original drawings were prepared in AutoCAD form: the “as-built’‘ drawings shall be presented to CSB on disk(s) in AutoCAD format. The digital fomiat shall be on 3.5 inch floppy disk or CD-ROM. Any digital submittals shall be able to be read by the latest version of AutoCAD. If digital submission is not possible, the Developer shall provide one complete set of “as-built” drawings on mylar and two sets of blue-line prints.

“As-built” sewer drawings shall show both plan and profile. Plan view shall be at a horizontal scale of 1” = 50 feet. Profiles shall be at a horizontal scale of 1” = 50 feet and a vertical scale of 1” = 10 feet.

Each manhole shall be shown in plan view referenced by measurement to at least three permanent structures that can be located in the field. In the event that three structures are not available, the location of the manholes shall be surveyed and the deflection angle and horizontal distance between manholes shall be shown on the drawing. Horizontal distances shall be measured to the nearest 0.1 foot. Angles shall be measured to the nearest second.

The invert elevations of all pipes entering and exiting the manholes shall be shown to the nearest 0.01 foot. These elevations shall be shown in the profile view.

The location of all appurtenances such as concrete anchors, thrust blocking, valves, cleanouts, etc. shall be measured from the nearest downstream manhole.

The location of all taps and house laterals shall be shown. Taps shall be referenced from the nearest downstream manhole.

All pipe sizes shall be shown.

The type of pipe material used shall be shown. Abbreviations such as PVC, DIP and PE shall be shown in the plan view on each manhole reach.

“As-built” drawings for pump stations shall show the dimensions of all control and electrical panels, wet-well dimensions, invert elevation of all incoming pipes, valve box dimensions, wire sizes, conduit sizes and locations, underground conduit locations, pump brand, pump capacity in gpm & TDH, and pump model number.

A final pump station site plan shall be provided.

Double Eagle Subdi\*isioii AMLEA May 4, 2009

1 1 , All “as-built“ drawings shall be signed and sealed by a Registered Professional Engineer if provided on mylar or print. If presented in digital format, a letter from a Registered Professioiial Engineer shall be provided stating the “as-built’? drawings were prepared under his supervision.

Double Eagle Subdii*isiori AMLEA May 4. 2009

EXHIBIT 4

Public Service Commission of West Virginia Rules and Regulations for the Government of Sewer Utilities 150 CSR 5

Rule 5.5. Extension of system.

8150-5-5. Utility Facilities; Service Pipes; Extension of System.

5.5. Extension of mains to serve new customers.

5.5.a. A sewer utility, whether publicly or privately owned, is under a public service obligation to extend its mains, and its plant and facilities to serve new customers within its service area who may apply for service.

5.5.b. Extensions shall be made in all cases in which the public convenience and necessity require the service, construction problems are not unusual or burdensome, and the extensions appear to be economically feasible.

5.5.c. For any proposed extension of mains, a reasonable relationship should exist between the per customer investment to serve new customers and the per customer investment to serve old customers.

5.5.d. Every effort shall be made by a utility to install its main line in the public road right-of- way or in a utility right-of-way abutting the public road right-of-way.

5.5.e. Extension for general sewer service.

1. The utility will respond to all inquiries regarding new sewer service, whether oral or written, by explaining all available options for obtaining service under these rules.

2. The utility will, upon written request for service in the form of Sewer Form No. 4, by a prospective customer or group of prospective customers located in the same neighborhood, determine the necessary size of main required to give service and make an estimate of the cost of providing the requested service, using the form of Sewer Form No. 5 , including pipe, valves, manholes, fittings, necessary materials, permits, labor costs incurred by the utility when the utility externally contracts for the construction of the extension, or internal labor costs, provided such internal or external costs are not recovered in existing rates, and other applicable related costs. When a road crossing(s) is (are) necessary to serve the customer(s) requesting service, the cost estimate shall not include costs attributable to extending the main across the first road (closest to the already existing main), but shall include the costs of installing the main across a second and any subsequent road(s). The written estimate calculated using Sewer Form No. 5 shall be provided to the customer in the form of Sewer Form No. 6, no more than forty-five (45) days from the receipt by the utility of the written request for service. The written estimate shall include an estimated construction start date and an estimated time of construction. If the prospective customer believes that any part of the estimate is unreasonable, the customer is free to pursue an informal request for assistance from the Commission staff or to file a formal complaint with the Commission. Further, the utility and the customer shall execute a Main Line Extension Agreement. Commission Staff may be consulted to provide assistance and sample forms. The agreement must include as an attachment a copy of this extension rule. The utility shall keep an executed copy of the agreement for at least six (6) years. The length of the extension required shall be that length required to extend from the new proposed service area to the nearest point of connection to the utility system having sufficient excess capacity to

Double Eagle Subdivision AMLEA May 4. 2009

provide service at maximum demand.

3. Whenever the utility is required to extend service from an existing main to property that does not imniediately abut the utility's right-of-way or the public road that contains the utility main, the extension shall be considered a main extension and the cost responsibility shall be detemiined under Rule 5.5.e.

4. Where the cost of the extension does not exceed the estimated total net revenue as calculated below, from prospective customers whose service pipes will immediately be connected directly to the extension and from whom the utility has received applications for service upon forms provided by the utility for this purpose, the utility will install, at its own cost and expense, the necessary extension; provided, that the patronage or demand will be of such permanency as to warrant the capital expenditure involved.

A. Net revenue shall be gross revenue minus the excess usage leak adjustment rate approved for the utility, and with this difference further reduced for any revenue based taxes.

B. Revenue shall be based on 4,500 gallons per month per residential unit, unless circumstances of the applicant show this would result in significant error. For non-residential units, annual revenue shall be based on typical consumption for comparable units published by the American Water Works Association.

C. Estimated total net revenue for private, for profit, utilities will be calculated as six (6) times estimated net annual revenue. Each such utility shall file for a utility-specific line extension multiplier within twelve (12) months of the effective date of these rules.

D. The utility-specific line extension multiplier for private, for profit, utilities shall be based 011 one (1) divided by the utility's net fixed charge rate. The net fixed charge rate shall equal the total of the utility's weighted cost of capital, applicable income tax rates, and the Coininission approved depreciation accrual rate.

E. Estimated total net revenue for associations, municipal, and public service district utilities will be calculated as five (5) times estimated net annual revenue. If the excess leak adjustment calculated for the utility fails to include all of the incremental costs of serving a new customer that should properly be netted out from the total revenues of the utility, the utility may apply to the Commission for a determination of the proper amount to be deducted from gross revenues to arrive at an appropriate determination of net revenue.

5.5.f. Extensions beyond the limit of utility-financed extensions of general sewer service.

1. If the estimated cost of the proposed extension required in order to furnish general sewer service exceeds the utility's estimate of total net revenue as determined by Rule 5.5.e.4., such extension shall be made if the applicant or the applicant's authorized agent contracts for such extension and deposits in advance with the utility the estimated cost of the extension over and above the limit of the utility- funded portion of the extension. The utility shall not pay nor be liable for any interest on such cash deposits. The utility shall make the extension after receiving the cash deposit. The utility shall, for each bona fide new customer who, within a period of ten (1 0) years from the making of such extension, directly connects to the extension between its original beginning and original terminus refund to the original depositor(s), an amount equal to the estimated total net revenue of the new customer as determined by Rule 5.5.e.4., but in no event shall the aggregate refund made to the depositors exceed the original deposit. Provided, however, that associations, public service districts and municipal sewer

Double Eagle SubdiMoii AMLEA May 4,2009

utilities may elect to refund the estimated amount over a period of five (5) years making payments 110 less frequently than every six (6) months.

5.5.g. Alternate Depositor-Financed Extension Plan.

1. Qualifying utilities -- The above requirements notwithstanding, the utility may decline to finance the portion of a requested extension that would be utility-funded, if it can demonstrate that it has no prospect of any reasonable internal or external financing through commercial loans, grants, or through an installment arrangement with an entity installing the extension or providing the necessary materials.

A. If the utility declines to finance the portion of a requested extension that would be the financial responsibility of the utility, the utility shall file for a waiver of the extension rule within sixty (60) days of the written request.

B. Before filing for a waiver, the utility must first make an estimate of the extension costs.

C. A request for a waiver by a utility shall be accompanied by supporting documentation justifying its request.

D. If the Commission finds that the utility has reasonably declined to finance the portion of the requested extension that would otherwise be utility-funded, the Cominission shall authorize the use of the alternate depositor-financed extension plan as described below.

2. Description of alternate depositor-financed extension plan -- Under the alternate depositor-financed extension plan, the utility shall make the extension after:

A. receiving a cash deposit equal to the full amount of the extension cost; and

B. agreeing to give the depositor(s), who is a customer, a monthly bill credit totaling one hundred percent (100%) of the actual net bill(s) from the date service is initiated and until the total credits given equal the estimated total net revenue as defined in Rule 5.5.e.4; and

C. agreeing to refund to the original depositor(s) an amount equal to estimated total net revenue as defined in Rule 5.5.e.4. of each bona fide customer, other than the depositor(s), who, within a period of ten (10) years from the construction of the extension, directly connects to the extension between its original beginning and the original terminus. The refund may be spread out over a five (5) year period with the utility making payments no less frequently than every six (6) months. Such refunds shall continue until the total refunds given equal the estimated total net revenue as defined in Rule 5.5.e.4.

3. In no event shall the total refund made to the depositor(s) under Rule 5.5.g.2.C. exceed the original deposit of the depositor(s).

4. The utility shall not pay nor be liable for any interest on the cash deposits associated with line extensions.

5.5.h. General provisions.

1 . Should the actual cost of the extension be less than the estimated cost, the utility will refund the difference as soon as the actual cost has been ascertained, but in no event longer than ninety (90) days after completion of construction of the extension. When the actual cost of the extension exceeds

Double Eagle SubdiMori AMLEA May 4,2009

the estimate cost, then the utility will bill the depositor for the difference between the estimated and the actual cost. The customer may pay this additional amount in installments. No interest will be paid by the utility on the applicant's payment or on any balance to be refunded.

2. In estimating the cost of an extension, the estimate shall be based on the diameter of the pipe to be used; provided, that the estimated cost to the customer or customers shall not be based on a pipe diameter greater than the diameter of the main from which the extension is to be made, unless actual use estimated for the proposed customer or customers required a larger pipe.

3. Extensions made under this rule shall be and remain the property of the utility,

4. The utility reserves the right to further extend its sewer mains from and beyond the extension made under this rule, and the depositor or the depositor's agent paying for an extension shall not be entitled to any refund for the attaching of customers to such further extension or branch mains so installed.

5 . In determining the length of main extensions or of sewer line to be installed in an urban area when land is subdivided in lots, the main, or sewer line (if installed by an entity other than a utility), shall be extended to fully cover the frontage of the property and if the last lot to be served is a comer lot, the terminal point of the extension made hereunder shall be located so that the sewer line ties in with the intersecting street; and further; provided that if there is no main located in the intersecting street, the terminal point of the extension shall be located at the nearest street line of the intersecting street. In rural areas or open land areas, the extension required will be that length necessary to adequately serve the applicant.

6 . Before sewer lines will be laid in any new subdivision, the road surface shall be brought to the established sub-grade as determined by the agency having jurisdiction.

7 . This rule shall not be construed as prohibiting the utility from entering into an agreement with a customer that complies with the Commission approved checklist attached hereto as Sewer Form No. 7 , in providing an alternate plan for a main extension. Commission Staff may be consulted to provide assistance and sample forms. In providing an alternate plan for main extensions a utility may not discriminate between customers whose service requirements are similar. The agreement shall be filed with and approved by the Commission prior to the implementation or execution of the agreement by any of the parties. The agreement shall include the name, address and phone number of the parties to the agreement. The agreement shall also include a provision explaining why the utility is not funding the extension. The agreement must attach a copy of this Rule 5.5 . , and a statement signed by the prospective customer that he has reviewed and understands the provisions of Rule 5.5.f. which entitle a customer to refunds and that he knowingly waives such rights, if applicable. Failure to obtain Commission approval will result in the loss of the right to obtain reimbursement from the utility. If an entity other than the utility constructs the extension, upon completion of construction and proper utility inspection of the extension, the utility shall initiate service only after proper transfer of title to all facilities including property, plant and rights-of-way incidental to the furnishing of utility service.

8. Contract for service -- The utility shall not be required to make utility-funded extensions or refunds as described in this rule unless those to be served by such extensions shall guarantee to the utility that they will take the service at their premises within thirty (30) days after service is available or as otherwise mutually agreed in a user's agreement.

9. Construction conditions -- Construction of line extensions, as provided in this rule, will be undertaken promptly after all applications have been completed, necessary right-of-way agreements or

Double Eagle Subdivisioii AMLEA May4. 2009

rights of entry have been delivered to the utility, and all prospective customers have signed contracts.

10. Right-of-way.

A. If the construction of an extension involves the acquisition of a private right-of-way, then the prospective customer shall attempt to secure the right-of-way and deliver it to the utility free of cost before construction of the extension is started.

B. If, however, it is not reasonably possible for the prospective customer or customers to secure the right-of-way, and the construction of an extension involves the utility's incurring expense for right-of-way easements, either by purchase or condemnation, such costs shall be added to the total cost of the extension.

C. As a condition to obtaining a main extension, any property owner or developer shall grant the utility the necessary easements which would allow the utility to make future extensions into unserved areas. The granting of the necessary easements shall be made without the utility being required to pay additional consideration for the additional easements to the property owner or developer. If the property owner or developer is unwilling to grant the additional easements, the utility shall not be required to extend its main to serve the property owner or developer.

1 1. Upon the proper filing of a Tariff Rule 42A, 42T, or 19A rate case by the utility, the utility may seek an impact fee to be assessed against customers.

Double Eagle Subdiiision AMLEA Ma,v 4, 2009

Sewer Form No. 4 (Sewer Rule 5.5.e.2.)

Form of written request for service by a prospective custonier or a group of prospective custoiners located in the same neighborhood

Sewer ( ) Water and Sewer ( )

Previous Customer ( ) Name Mailing address Phone Property location Rent() Own() Other If rent: Property owners name Property owner’s iiiailing address Phone Type of service: Residential ( ) Number in household

If so, when

Commercial ( ) Type Industrial ( ) m e

New customer ( )

Appl i cant‘ s place of employ men t Employment address Phone Name of spouse Spouse’s place of employinent Spouse’s employment address Phone

I HEREBY AUTHORIZE SERVICE TO BE ESTABLISHED IN MY NAME AT THE ABOVE PROPERTY LOCATION AND AGREE TO PAY FOR SERVICE UNTIL DISCONTINUED BY MY REQUEST IN WRITING. 1 UNDERSTAND THAT THIS APPLICATION IS ACCEPTED SUBJECT TO THE AVAILABILITY OF SERVICE AT THIS LOCATION.

Applicant‘s signature Date Utility representative

Name Applicant ID Sewer Forni No. 4 Page 2 of 2

Date For office use only

Account No.

Deposit amount Tap fee amount Meter Size Meter No. Meter Route Meter reading Date on Date off Customer request ( ) Termination ( )

Double Eagle Subdivisioii AMLEA May 4, 2009

Sewer Form No. 5 (Sewer Rule 5.5.e.2.)

Forni for use in determining cost estimate to extend sewer service

Date The following estimate is in response to a request to extend the Utility’s sewer facilities approximately

to serve a customer or customers who desire sewer service. Cost Estimate

Sewer line ( -- inch PVC) feet @ $ /foot = $ Excavatiodinstallation feet @ $ /foot = $ Materials (fittings, valves, stone, etc.) = $ Permitdrights-of-way (Health, Highways, etc.) = $ Restoration (seeding, gravel, etc.) = $ Related cost (engineering, legal, etc.) = $

TOTAL = $ Cost Share of Customers and Utility

A. Total estimated cost of extension $ B. Utility Share: (estimated total net revenue

per customer calculated pursuant to Rule 5.5.e.4.) $ per customer X customers = $

C. Customer share: estimated cost to be paid by customers (A-B) = $

Conditions

If the potential customers shall deposit with the Utility, in advance, the total sum of $ 9

(customers share f?om “C” above), a tap fee of $ security deposit per customer, the Utility will apply for the necessary permit applications and begin construction as soon as possible.

If the actual cost to construct the extension is less than the estimated cost, the Utility will refund the difference to the original depositors. If the actual cost exceeds the estimated cost the Utility will bill the depositors for the difference.

per customer, and a $

The customers will be required to sign an application for service and/or a users agreement when the tap fees and deposits are made.

This main line extension estimate is made in accordance with Sewer Rule 5.5 of the Rules for the Government of Sewer Utilities.

Double Eagle Subdivision AMLEA May 4, 2009

Sewer Form No. 6 (Sewer Rule 5.5.e.2.)

Form of cost estimate to be provided to applicants for service

Dear Mr. Customer:

We have received a petition for a sewer main extension and have estimated the construction cost to extend the main to serve the properties of the is summarized below:

(insert number) petitioners. This estimate

Sewer line feet at $ I foot Excavationhstallation feet at $ I foot Materials (fittings, valves, stone, etc.) PermitslRights-of-way (Health, Highways, etc.) Restoration (seeding, gravel, etc.) Related Cost (engineering, legal, etc.) Total Estimated Extension Construction Cost Minus Utility’s Share (estimated total net revenue per customer pursuant to Sewer Rule 5.5.e.4.) Estimated Cost to be Paid by Customers Estimated Cost per Customer When the “customer’s share” referenced above is deposited with the Utility, the Utility will apply for

the necessary permit applications and begin construction as soon as possible. If the actual cost to construct the extension is less than the estimated cost, the Utility will refund the difference to the original depositors. If the actual cost exceeds the estimated cost, the Utility will bill the depositors for the difference. This difference must be settled before service can actually be connected.

All customers will be required to sign an extension agreement and an application for service andor a users agreement and pay a tap fee of $ , and a security deposit of $ prior to receiving service. The security deposit is refunded with interest following twelve consecutive months of full and timely payments for services rendered.

The estimated start date of construction is The estimated duration of construction is Should you have any questions, you may contact Barbara Manager or John Foreman at

days.

between 9:OO a.m. and 4:OO p.m., Monday through Friday. Sincerely,

Double Eagle Subdii,ision AMLEA Mav 4, 2009

SANITARY BOARD OF THE CITY OF CHARLESTON DOUBLE EAGLE SUBDIVISION

DATE OF ESTIMATE: 5/4/2009

PREPARED BY: TIM HAAPALA

Total Estimated Cost $445,2 00