Thrasher Engineering, Inc

LAW OFFICE Thomas R. Michael ATTORNEY AT LAW P.O. BOX 250 LOST CREEK, WEST VIRGINIA, 26385-0250

PHONE 304-745-5904 FAX 304-745-5907 EMAIL tom-michael@yahoo,com

February 1, 20 10 cr, sg rn 0 $7 3-7 0 Sandra Squire, Executive Secretary rrr 0 w ;eJ -\ I*. c rn Public Service Commission of West Virginia J> 0 Post Office Box 8 12 -JJz- ’Z PI -5cnc-Y Charleston, WV 25323 334 3 p’pq

le?-O\Zq-&O--C~ uon~~~ c33 c? Re: Hardy County Public Service District Z6- Hardy County, West Virginia 0 -2 Application for Certificate of Convenience and Necessity m mu3

Dear Ms. Squire:

Enclosed for filing in the above matter please find an original and 12 copies of the Application ofthe Hardy County Public Service District for a Certificate of Convenience and Necessity to construct potable water distribution systems in Hardy County, West Virginia, in the Mawin Chapel area near Wardensville, and in Baker and surrounding areas.

Also enclosed is one copy of the engineering reports, plans and specifications.

Yours truly,

6 Counsel for Hardy County Public Service District Enclosures cc, application without enclosures: Logan Moyers, Hardy County Public Service District Clay Riley, Thrasher Engineering, Inc. RECEIVED

CASE NO.

NAME OF APPLICANT: HARDY COUNTY PUBLIC SERVICE DISTRICT

Application of the Hardy County Public Service District for a Certificate of Convenience and Necessity to construct potable water distribution systems in Hardy County, West Virginia, in the Marvin Chapel area near Wardensville, and in Baker and surrounding areas.

NOTICE OF FILING

WHEREAS, on January ,2010 the Hardy County Public Service District filed an application, duly verified, for a Certificate to construct certain potable water distribution systems in Hardy County, West Virginia. The application is on file with and available for public inspection at the Public Service Commission, 201 Brooks Street, in Charleston, West Virginia.

WHEREAS, the Hardy County Public Service District estimates that construction will cost approximately $9,954,250.00. It is proposed that the construction will be financed as follows: West Virginia Infrastructure and Jobs Development Council loan in the amount of $1,641,250.00 (0% interest, 40 year term); United States Department of Agriculture, Rural Development Services, grant in the amount of $4,565,000.00; and a United States Economic Development Administration grant in the amount of $3,748,000.00.

WHEREAS, the utility anticipates charging the following post project water rates for its customers:

APPLICABILITY Applicable within the entire territory served

AVAILABILITY Available for general domestic, commercial and industrial water service.

RATES (customers with metered water supply)

First 3,000 gallons used per month $13.25 per M gallons Next 7,000 gallons used per month $9.60 per M gallons Next 40,000 gallons used per month $3.97 per M gallons All over 50,000 gallons used per month $3.70 per M gallons

MINIMUM CHARGE No minimum bill will be rendered for less than the following:

518 inch meter $39.75 per month 314 inch meter $59.65 per month 1 inch meter $99.40 per month 1 114 inch meter $145.10 per month 1 112 inch meter $198.75 per month 2 inch meter $3 18.00 per month 3 inch meter $596.25 per month 4 inch meter $993.75 per month 6 inch meter $1,987.50 per month 8 inch meter $3,180.00 per month 10 inch meter $4,571.25 per month

RETURNED CHECK CHARGE A service charge of $25.00 will be imposed upon any customer whose check for payment of charges is returned by the bank for any reason.

MUNICIPAL EXCISE TAX SURCHARGE The municipalities listed below, having imposed public utility tax computed on the basis of two percent of the revenues from water sales by Hardy County Public Service District water within the corporate limits of such municipalities, shall be billed a "surcharge" to the customers receiving service within said corporate limits.

The water utility is required to collect the utility tax pursuant to West Virginia Code $8-13- 5a. Customers receiving water service within the corporate limits of the specified municipality shall pay a surcharge based on the following surcharge rates:

Town of Moorefield Utility Excise Tax Rate 2% Surcharge Rate 2%

DELAYED PAYMENT PENALTY The above schedule is net. On all accounts not paid in full when due, ten percent will be added to the net current amount unpaid. This delayed payment penalty is not interest and is to be collected only once for each bill where it is appropriate.

WATER DISCONNECT-RECONNECT-ADMINISTRATIVEFEES Whenever water service has been disconnected for any reason, a disconnection fee of $25.00 shall be charged; or in the event the delinquent water bill is collected in the field, an administrative fee of $25.00 shall be charged. Whenever water service which has been previously disconnected for any reason is reconnected, a reconnection fee of $25.00 shall be charged. TAP FEE The following charges are to be made whenever the utility installs a new tap to serve an applicant.

A tap fee of $150.00 will be charged to customers applying for service before construction is completed adjacent to the customers premises in connection with a certificate proceeding before the Commission. This pre-construction tap fee will be invalid after the completion of construction adjacent to an applicant's premises that is associated with a certificate proceeding.

A tap fee of $400.00 will be charged to all customers who apply for service outside of a certificate proceeding before the Commission for each new tap to the service.

LEAK ADJUSTMENT An amount not to exceed $4.00 per 1,000 gallons is to be used when a bill reflects unusual consumption which can be attributed to eligible leakage on the customer's side of the meter. This rate shall be applied to all such consumption above the customer's historical usage. The District shall establish a nondiscriminatory policy regarding this provision for leak adjustments.

SECURITY DEPOSIT In accordance with West Virginia Law and Public Service Commission Rules and Regulations.

EFT. CREDIT CARD. ACH AND DROP BOX PAYMENTS A service charge will be imposed on EFT, Credit Card, ACH or Drop Box payments. The amount shall be equal to the actual charges to the utility from the financial institution for processing payment.

PRIVATE FIRE PROTECTION SERVlCE! * Where connections, hydrants, sprinklers, etc., on private property arc maintained by customer:

2 inch service line with hydrants, sprinklers, and/or connections $85.77 annually 3 inch service line with hydrants, sprinklers, and/or connections $195.02 annually 4 inch service line with hydrants, sprinklers, and/or connections $342.39 annually 6 inch service line with hydrants, sprinklers, and/or connections $867.89 annually 8 inch service line with hydrants, sprinklers, and/or connections $1,423.24 annually 10 inch service line with hydrants, sprinklers, and/or connections $2,524.99 annually 12 inch service line with hydrants, sprinklers, and/or connections $3,538.19 annually

* Same as WVAWC

These rates represent a project-related increase of 28.5% in billed revenues. A minimum bill based on 3,000 gallons of water usage per month would be $39.75. A monthly bill based on 4,000 gallons of water usage per month would be $49.35. The proposed increased rates and charges will produce approximately $3 16,025.00 annually in additional revenue, an increase of 34%.

The Hardy County Public Service District does not have any resale customers.

The increases shown are based on averages of all customers in the indicated class. Individual customers may receive increases that are greater or less than average. Furthermore, the requested rates and charges are only a proposal and are subject to change (increases or decreases) by the Public Service Commission in its review of this filing.

Pursuant to $24-2- 1 1, West Virginia Code, IT IS ORDERED that the Hardy County Public Service District give notice of the filing of said application, by publishing a copy of this order once in a newspaper duly qualified by the Secretary of State, published and of general circulation in Hardy County, making due return to this Commission of proper certification of publication immediately after publication. Anyone desiring to protest or intervene should file a written protest or notice of intervention within 30 days following the date of this publication unless otherwise modified by Commission order. Failure to timely protest or intervene can affect your right to protest aspects of this certificate case, including any associated rate increases, or to participate in future proceedings. All protests or requests to intervene should briefly state the reason for the protest or intervention. Requests to intervene must comply with the Commission's rules on intervention set forth in the Commission's Rules of Practice and Procedure. All protests and interventions should be addressed to Sandra Squire, Executive Secretary, P. 0. Box 812, Charleston, West Virginia 25323.

IT IS FURTHER ORDERED that if no protests are received within said thirty (30) day period, the Commission may waive formal hearing and grant the application based on the evidence submitted with said application and its review thereof.

FOR THE COMMISSION

Executive Secretary APPLICATION FOR A CERTIFICATE OF CONVENIENCE AND NECESSITY

State of West Virginia io h d Public Service Commission Charleston ...+ -4%- L.- 0 ;:. ”, ps rn ;;3 -2 4 Case No. PWD- CN -f cn 0 234 cf’i”,cr, 3 m 0 0 a HARDY COUNTY PUBLIC SERVICE DISTRICT 7123 co 2- Application of the Hardy County Public Service District for a $erti@ate&f Convenience and Necessity to construct potable water distribution systems in Hardy County, West Virginia, in the Marvin Chapel area near Wardensville, and in Baker and surrounding areas.

Comes now the above-named Hardy County Public Service District, the petitioner herein, and respectfully shows the Commission as follows:

1. That the name and address of the Applicant is: Hardy County Public Service District, P.O.

Box 900, Moorefield, WV 26836.

2. That the Applicant’s proposed project will consist of the following: This project will serve

the Baker and Marvin Chapel areas in Hardy County. The Baker Water Distribution System

will provide water to the Central region of Hardy County. Currently, in the area of Baker

residents have to rely on well sources or springs for their water supply. In some cases around

the State of West Virginia there is little problem with relying on individual sources; however

this area is not one of the cases. The Baker area lies nestled between South Branch Mountain

and Buck Mountain along the Lost River. Individual water sources in the area tend to be

deep, low yield, and low quality. Many residents utilize cisterns or some form of home

treatment to help overcome their water source’s shortcomings. The Baker section of the

project will require a water treatment plant along with a water storage tank.

1 The Marvin Chapel portion of the project will provide potable water service to

approximately 39 new customers that currently do not have a reliable source of potable

water. This project will be provided working water pressure by the existing Wardensville

300,000 gallan water storage tank located along County Route 5 just East of Wardensville.

The Marvin Chapel project will require a booster station and storage tank.

In summary, this project will supply approximately 140 new EDU's with water

service in two distinct areas of Hardy County. The Hardy County Public Service District has

already received a full commitment of funds from the USDA - Rural Utility Service,

WVIJDC as well as US EDA. The District is updating the project cost to current bidding

prices as well including necessary system wide telemetry upgrades and metering software /

equipment. The District also plans to purchase the property adjoining the main office, install

hydrant locks, and purchase field staff truck(s). Construction of this project is anticipated to

occur in late 2010.

3. The project is further described in the following documents prepared by Thrasher

Engineering and enclosed herewith:

a. Preliminary Engineering Report (December 2004).

b. Amendment #I to the Preliminary Engineering Report (April 2009).

C. Amendment #2 to the Preliminary Engineering Report (January 201 0).

d. Design Manual (January 20 10).

e. Contract Documents and Detailed SpeciJications - Contract # I (January 20 10).

f. Contract Documents and Detailed Specijkations - Contract # 2 (January 20 10).

€5 Contract Documents and Detailed Specfications - Contract # 4 (January 20 10).

2 h. Contract Documents and Detailed Specijkations - Contract # 5 (January 20 10).

i. Construction Plans - Contract ## I (January 2010).

j- Construction Plans - Contract # 2 (January 2010).

k. Construction Plans - Contract # 4 (January 2010).

1. Construction Plans - Contract # 5 (January 2010).

4. The cost of the project is $9,954,250.00. It is proposed that the construction will be financed

as follows: West Virginia Infrastructure and Jobs Development Council loan in the amount

of $1,641,250.00 (0% interest, 40 year term); United States Department ofAgriculture, Rural

Development Services, grant in the amount of $4,565,000.00; and a United States Economic

Development Administration grant in the amount of $3,748,000.00.

5. Service is not currently rendered by another existing utility, corporation or person

6. Applicant is apublic service district and apolitical subdivision ofthe State of West Virginia.

7. A certificate should be issued for the following reasons:

a. The new customers in the Marvin Chapel area do not currently have a reliable source

of potable water.

b. The new customers, including schools, medical facilities and other commercial

locations in the Baker area do not currently have a reliable source of potable water.

8. [Rule 26.1 No. 3 .) Tariff Rule 42 Accounting. Information. Enclosed herewith is the Rule 42

Exhibit prepared by the Applicant’s accountant, Griffith & Associates, PLLC, dated January

5,2010.

9. (Rule 26.1 No. 4.) Proposed Rate Structure in tariff form. See pages 17-18 of the enclosed

Rule 42 Exhibit.

3 10. (Rule 26.1 No. 5.) Existing Rate Structure in tariff form. Please see Tariff issued August

1 1, 2009, enclosed herewith.

11. [Rule 26.1 No. 6.) Facility Plan or feasibility studv. Please refer to the Preliminary

Engineering Report (December 2004), to the Amendment #I to the Preliminary Engineering

Report (April 2009), and to the Amendment #2 to the Preliminary Engineering Report

(January 20 10) prepared by Thrasher Engineering and enclosed herewith.

12. (Rule 26.1 No. 7.) Agreements between Applicant and Other Utilities. Copies of the Water

Purchase Contract between the Town of Wardensville and the Applicant, dated April 20,

1993, and the Amendment to Water Purchase Contract, dated June 8,2006, are enclosed

herewith. These agreements were approved in Case No. 05-1 155-W-PC (Final Order May

7,2006).

13. (Rule 26.1 No. 8.) A pro-iect maD showing the location of each customer cross-referenced

to a complete customers list indicating which customers have signed contracts for service and

paid connection fees, which houses and buildings are dumbed and which customers have

a private water supply. Please see the Construction Plans for Contracts 1, 2, 4 and 5,

enclosed herewith. A total of 38 new customers in the Marvin Chapel area, and 26 in the

Baker area, have signed user agreements and paid the tap fee. (Copy of user lists enclosed).

More detailed information can be provided if requested.

14. (Rule 26.1 No. 9.) Proposed bond and/or municipal rate ordinances (as applicable). A copy

of the proposed bond ordinance will be submitted as soon as it is available.

15. (Rule 26.1 No. 10.) Permits andor approvals. Please refer to the enclosed letter from Clay

Riley, dated December 28,2009. Copies ofthe following permits and approvals are enclosed

4 herewith: a. Letter from West Virginia Division of Culture and History, dated August 19,2004.

(Baker area). b. Letter from West Virginia Division of Culture and History, dated February 23 ,2004.

(Marvin Chapel area). c. Letter from West Virginia Division of Natural Resources, dated December 29,2003. d. Letter from US Department of the Interior, Fish and Wildlife Service, dated January

27, 2004. e. Letter from US Department of the Army, Corps of Engineers, dated March 11,2004.

f. Letter from West Virginia Division of Natural Resources, dated June 3, 2008.

(License and Right of Entry)

g. Letter from West Virginia Department of Environmental Protection, dated September

19,2008. (Backwash discharge permit).

h. West Virginia Department of Environmental Protection permit details. Permit issued

July 21,2008. (Storm water permit).

i. Letter from West Virginia Department of Environmental Protection, dated May 4,

2009. (Domestic sewage permit).

j. Letter from West Virginia Department of Environmental Protection, dated May 30,

2008. (Wasteload allocation).

Applications are pending with the following:

k. West Virginia Bureau of Public Health. Please refer to the enclosed letter from the

West Virginia Bureau of Public Health, dated July 10, 2008. (Approval pending

5 completion of ongoing pilot study of membrane filter technology).

1. West Virginia Division of Highways.

16. {Rule 26.1 No. 11.) Letters showing knding sources. The following letters are enclosed:

a. US Economic Development Administration letter dated October 23,2009.

b. WV Infi-astructure & Jobs Development Council letter dated July 14,2009.

c. USDA Rural Development letter dated January 27,20 10.

17. {Rule 26.1 No. 12.) Interim Financing Information including funding sources and terms and

conditions funding. Interim financing for these projects is part of the financing from United

States Department of Agriculture, Rural Development, approved in Case No. 07- 1607-PWD-

19A (Final order dated May 6,2008).

18. [Rule 26.1 No. 13.) Name. Classification, and License No. of Operators. Chief Water

Operator Kevin Markwood, Class I, License No. 201 10121 14; Connie Sherman, Class I,

License No. 2010007032; Chuck Ours, Class I, License No. 201 1012424.

19. (Rule 26.1 No. 14.) Engineering; Report. Please refer to the aforementioned Preliminary

Engineering Report (December 2004), Amendment #1 to the Preliminary Engineering Report

(April 2009), and Amendment #2 to the Preliminary Engineering Report (20 10).

20. {Rule 26.1 No. 15.) Project Plan Drawings. Please refer to the aforementioned

Construction Plans - Contract # 1 (January 2010), Construction Plans - Contract # 2

(January 2010), Construction Plans - Contract # 4 (January 2010), and Construction Plans

- Contract # 5 (January 2010).

2 1. {Rule 26.1 No. 16.) Specifications. Please refer to the aforementioned Contract Documents

and Detailed Specfications - Contract # I (January 2010), Contract Documents and

6 Detailed Specijications - Contract # 2 (January 20 lo), Contract Documents and Detailed

SpeciJications - Contract # 4 (January 2010), Contract Documents and Detailed

SpeciJications - Contract # 5 (January 2010).

22. [Rule 26.1 No. 17.) Maximum Service Elevation Information (water systems only). Please

refer to the enclosed letter from Phil Simmons, Thrasher Engineering, dated January 13,

2010.

23. [Rule 26.1 No. 18.) For public service districts - affidavit of Publication of Class I1 legal

advertisement notice of pre-filing. in the form of Form No. 13 attached hereto, pursuant to

W. Va. Code 6 16- 13A-25. NOT APPLICABLE.

24. (Rule 26.1 No. 19.) Proposed Notice of Filing. in the form of Form 14. Enclosed herewith

is a proposed Notice of Filing, Form 14, for review by the Commission. The Applicant shall

not publish this form until directed to do so in a Commission Order.

25. [Rule 26.1 No. 20.) Copy of letter from utility providing thirty (30) day advance notice of

filing pursuant to W. Va. Code I, 24-2-1 1. NOT APPLICABLE.

26. {Rule 26.1 No. 2 1.) If the proposed proiect reauires modification of a public service district

boundary, a statement that the county commission process is complete. NOT APPLICABLE.

27. (Rule 26.1 No. 22) If the Droposed pro-iect will infringe upon any other utilitv’s service area

or affect any other utility financially or otherwise, a statement to that effect. There are no

encroachments from the proposed project.

28. (Rule 26.1 No. 23.) Evidence of SHPO compliance. Please refer to Section VI of

Amendment #I to the Preliminary Engineering Report for the Baker area. Please refer to the

following enclosed herewith for the Marvin Chapel area:

7 a. Letter from West Virginia Division of Culture and History, dated November 4,2003.

b. Letter from West Virginia Division of Culture and History, dated February 23,2004.

(See item 15.b.

29. {Rule 26.1 No. 24.) Statement showing when bids are anticipated to be let. It is anticipated

that bids may be let no later than Summer, 2010.

30. {Rule 26.1 No. 25.) Other information as needed. NONE.

3 1. [Rule 26.1 No. 26.) Case number and approval date of engineering agreements involving

public service district. NOT APPLICABLE.

8 WHEREFORE, the Applicant requests that the Commission grant a certificate of convenience and necessity, approve the funding for the project, and approve the proposed tariff, Dated this lz day of fE&k ufiky ,2010.

HARDY COUNTY PUBLIC SERVICE

Thomas.7MwM& R. Michael State Bar No. 2546 Attorney for Hardy County Public Service District P.O. Box 250 Lost Creek, West Virginia, 26385 3 04-745-5904

COUNTY OF HARDY STATE OF WEST VIRGINIA , Subscribed and sworn before me this / day of Fektiq, 201 0 by Logan Moyers, General Manager of the Hardy County 4cPublic Service District. ,- n wNotary ublic

MY commission expires: 7;j nF ' S&M(

9 RULE 42 EXHIBIT BAKER AND MARVIN CHAPEL WATER PROJECTS

Based on the Fiscal Year Ended June 30, 2008 and Current and Planning Information

GRlFFlTH & ASSOCIATES, PLLC 950 Little Coal River Road Alum Creek, West Virginia 25003 em ail : m ic haelgriff it hcpa@ve rizo n .net Phone: (304) 756-3600; Facsimile: (304) 756-291 I

January 5,2010 HARDY COUNTY PUBLIC SERVICE DISTRICT - WATER RULE 42 EXHIBIT BAKER AND MARVIN CHAPEL WATER PROJECTS

TABLE OF CONTENTS

PAGE STATEMENT NUMBER

Letter of Transmittal

Rate Comparison Chart 1

A Statement of Net Income 2 Schedule 1 - Detail of Operating Revenue 3 Schedule 2 - Detail of Operation and Maintenance Expenses 4-6 Schedule 4 - Taxes Other Than Income Taxes 7 Schedule 6 - Other Income 8 Schedule 7 - Other Income Deductions 9

B Plant in Service IO- 11

C Detail of Debt Capital 12

D Customer’s Bill Analysis 13- 14 Schedule 1 - Per Books and Going Level Tariff 15- 16 Schedule 2 - Proforma Tariff 17- 18

E Allocation of Costs (Waiver Requested) 19

F Comparative Balance Sheet - Per Books 20 - 21

G Detail of Adjustments 22 - 25

H Cash Flow Analysis 26 Griffith & Associates, PLLC Accountants & Consultants @--,

January 5,201 0

Hardy County Public Service District Logan Moyers, General Manager P.O. Box 900 Moorefield, West Virginia 26836

RE: Hardy County Public Service District - Rule 42 Exhibit Baker and Marvin Chapel Water Projects

Dear Mr. Moyers:

This exhibit is a compilation of financial information as prescribed by Rule 42 of the Public Sewice Commission of West Virginia Rules of Practice and Procedure for the Filing of Tarifs. This exhibit is the basis for a recommendation for the water rates set forth to meet Project Proforma operational requirements, capital improvements, existing and proposed debt service and debt service related reserve accounts for the Baker and Marvin Chapel Water Projects. Our compilation was limited to information that is the representation of management. We have not audited or reviewed the financial statements referred to above and accordingly do not express an opinion or any other form of assurance on them.

The report was based on billing and other financial information for the fiscal year ending June 30, 2008. Based on the annual revenue requirements associated with the proposed project we are proposing an across-the-board 28.5% increase to the rates and charges approved by the Public Service Commission in Case No. 08-2103-PWD-19A. Based on the Proforma level of operations and the revenues generated by the proposed rates, the annual water cash flow surplus would be $61,740 with a debt service coverage factor of 133.07%. A minimum bill based on 3,000 gallons of water usage per month would be $39.75 and a monthly bill based on 4,000 gallons would be $49.35.

The funding package for the Proposed Projects is detailed as follows:

WVIJDC Loan, 0%, 38 years !$ 1,641,250 Federal EDA - ARRA Grant 3,748,000 USDA - RUS Grant 4,565,000 Total $9,954,250

We acknowledge the assistance of your employees and hereby submit this exhibit for consideration. If you have any questions concerning this response feel free to contact my office.

Griffith & Associa&, PLLC HARDY COUNTY PUBLIC SERVICE DISTRICT - WATER Attachment 1 RULE 42 EXHIBIT BAKER AND MARVIN CHAPEL WATER PROJECTS

Rate Increase Comparison

Sales to All Customers

Going Per Books Level Going Going Proforma Proforma/ Proforma/ M Gallon M Gallon Level/ Level/ M Gallon Going Going Rates Rates Current Current Rates Level Level

1,000 $21.00 $30.93 $9.93 47.29% $39.75 $8.82 28.52% 2,000 $21.00 $30.93 $9.93 47.29% $39.75 $8.82 28.52% 3,000 $21.00 $30.93 $9.93 47.29% $39.75 $8.82 28.52%1 3,500 $24.50 $34.67 $10.17 41.49% $44.55 $9.89 28.52% I 4,000 $28.00 $38.40 $10.40 37.14% $49.35 $10.95 28.52% 4,500 $31.50 $42.14 $10.64 33.76% $54.15 $12.02 28.52% 5,000 $35.00 $45.87 $10.87 31.06% $58.95 $13.08 28.52% 6,000 $42.00 $53.34 $1 1.34 27.00% $68.55 $15.21 28.52% 7,000 $49.00 $60.8 1 $11.81 24.10% $78.15 $17.34 28.52% 8,000 $56.00 $68.28 $12.28 21.93% $87.75 $19.47 28.51% 9,000 $63.00 $75.75 $12.75 20.24% $97.35 $2 1.60 28.51% 10,000 $70.00 $83.22 $13.22 18.89% $106.95 $23 -73 28.51% 15,000 $105.00 $98.67 ($6.33) -6.03% $126.80 $28.13 28.51% 20,000 $140.00 $1 14.12 ($25.88) -18.49% $146.65 $32.53 28.51% 25,000 $175.00 $129.57 ($45.43) -25.96% $166.50 $36.93 28.50% 30,000 $2 10.00 $145.02 ($64.98) -30.94% $186.35 $41.33 28.50% 40,000 $280.00 $175.92 ($104.08) -37.17% $226.05 $50.13 28.50% 50,000 $350.00 $206.82 ($143.18) -40.91% $265.75 $58.93 28.49% 60,000 $420.00 $235.62 ($184.38) -43.90% $302.75 $67.13 28.49% 70,000 $490.00 $264.42 ($225.58) -46.04% $3 39.75 $75.33 28.49% 80,000 $560.00 $293.22 ($266.78) -47.64% $376.75 $83.53 28.49% 90,000 $630.00 $322.02 ($307.98) -48.89% $413.75 $91.73 28.49% 100,000 $700.00 $350.82 ($349.18) -49.88% $450.75 $99.93 28.48% 225,000 $1,575.00 $710.82 ($864.18) -54.87% $9 13.25 $202.43 28.48% 300,000 $2,100.00 $926.82 ($1,173.18) -55.87% $1,190.75 $263.93 28.48% 400,000 $2,800.00 $1,214.82 ($1,585.18) -56.61% $1,560.75 $345.93 28.48% 500,000 $3,500.00 $1,502.82 ($1,997.18) -57.06% $1,930.75 $427.93 28.48% c

HARDY COUNTY PUBLIC SERVICE DISTRICT - WATER Statement A STATEMENT OF NET INCOME FISCAL YEAR ENDED JUNE 30,2008

Reference Per Books Per Books Going Level Proforma Statement A Per Books Adjustments Adjusted Adjustments Going Level Adjustments Proforma (1) (2) (3) (4) (5) (6) (7)

UTILITY OPERATING INCOME

Operating Revenues Schedule 1 771,513 771,5 13 162,061 933,574 3 16,025 1,249,599

Operating Revenue Deductions Operation and Maintenance Schedule 2 535,977 535,977 114,393 650,370 1 14,95 1 765,321 Taxes Other Than Income Taxes Schedule 4 15,081 15,081 1,604 16,685 16,685

Total Operating Revenue Deductions 55 1,058 551,058 115,997 667,055 114,951 782,006

Net Operating Income 220,455 220,455 46,064 266,s 19 201,074 467,593

Other Income Schedule 6 102,561 102,561 (92,561) 10,000 10,000

Other Income Deductions Schedule 7 209,924 209,924 209,924 209,924

NET lNCOME

A bill based on : Per Books * GoingLevel Proforma 3,000 gallons $21.00 $30.93 $39.75 3,500 gallons $24.50 $34.67 $44.55 4,000 gallons $28.00 $38.40 $49.35 4,500 gallons $3 1.SO $42.14 $54.15

* Based on CaseNo. 08-2103-PWD-19A HARDY COUNTY PUBLIC SERVICE DISTRICT - WATER Statement A DETAIL OF OPERATING REVENUE Schedule 1 FISCAL YEAR ENDED JUNE 30,2008

Per Books Per Books Going Level Proforma Per Books Adjustments Adjusted Adjustments Going Level Adjustments Proforma Sales of Water 141 (7)

Unmetered Sales Residential (Rulk) Commercial (Bulk)

Total Unmetered Sales

Metered Sales Residential 75 1, I42 751,142 171,064 (I) 922.206 316,025 (9) 1,238,231 Commercial Industrial Public Authority

Total Metered Sales 751,142

Private Fire Protection Public Fire Protection Sales for Resale

Total Private Fire & Sales for Resale

Total Sales of Water 751,142 751,142 17 1,064 922,206 3 16,025 1,238,231

Other Operating Revenues

Forfeited Discounts 11,368 1 1,368 11,368 11,368 Miscellaneous Service Revenues 1,855 1,855 (1,855) (2) Rents from Water Property Other Water Revenue 7,148 7,148 (7,148) (2)

Total Other Operating Revenues

Total Operating Revenues

Forfeited Discounts Rate -Percent 1.51% 1.51% 1.23% 0.92%

A bill based on : Per Books * Going Level Proforma 3,000 gallons $21 .oo $30.93 $39.75 3,500 gallons $24.50 $34.67 $44.55 4,000 gallons $28.00 $38.40 $49.35 4,500 gallons $3 I SO $42.14 $54.15

* Based on CaseNo. 08-2103-PWD-19A HARDY COUNTY PUBLIC SERVICE DISTRICT - WATER Statement A DETAIL OF OPERATION AND MAINTENANCE EXPENSES Schedule 2 FISCAL YEAR ENDED JUNE 30.2008 Sheet I of 3

Account Per Books Per Books Going Level Proforma Numhcr Per Books Adjustments Adjusted Adjustments Going Level Adjustments Proforma (1) (2) (3) (4) (6) (7) $ $ s s s s SOURCE OF SUPPLY EXPENSES

ODeration 600 Operation Supervision & Engincering 601 Operation Labor & Expenses 602 Purchased Water 96,996 96,996 34,33 I (3) (4) 131,327 131,327 603 Miscellaneous Expenses 604 Rents Total Operation 96,996 96,996 34,331 131,327 131,327

Maintenance 610 Maintenance Supervision & Engineerinc 611 Maintenance of Structures & Improvements 612 Maintenance of Collecting & Impounding Reservoirs 613 Maintenance of Lake, River and Other Intakes 614 Maintenance of Wells & Springs 615 Maintenance of Infiltration Galleries and Tunnels 616 Maintenance of Supply Mains 617 Maintenance of Miscellaneous Water Source Plant 1,853 1,853 1,853 1,853 Total Maintenance 31,853 1853 1853 Total Source of Supply

PUMPING EXPENSES

ODeration 620 Operation Supervision & Engineering 62 1 Fuel for Power Production 622 Power Production Labor & Expenses 623 Fuel or Power Purchascd for Pumping 23.087 23,087 28,007 28,007 624 Pumping Labor & Expenses 625 Expenses Transferred - Cr. 626 Miscellaneous Expenses 627 Rcnts Total Operation 23,087 23,087 4,920 28,007 28,007

Maintenance 630 Maintenance Supervision & Engineering 631 Maintenance of Structures & Improvements 3,000 (8) 3,000 3,000 632 Maintenance of Power Production Equipment 633 Maintenance of Pumping Equipment 7,000 (8) 7,000 7,000 Total Maintenance 10,000 10,000 10,000

Total Pumping Expenses

"UNAUDITED"

" .1#..."111.1 "1, *.*, ._., I,,./.. Y*.1..,. ".._._.".*"/...., "~, Preoared by Michael D. GnMith HARDY COUNTY BLJBLlC SERVICE DISTRICT - WATER Statement A DETAIL OF OPERATION AND MAINTENANCE EXPENSES Schedule 2 FISCAL YEAR ENDED JUNE 30,2Q08 Sheet 2 of 3

Account Per Books Per Book.. Going Level Proforma Number Per Books Adjustments Adjusted Adjustments Going Level Adjustments Proforma (1) (2) (3) (4) (5) (6) (7) $ $ $ $ $ s $

WATER TREATMENT EXPENSES

ODeration 640 Operation Supervision & Engineering 641 Chemicals 642 Operation Labor & Expenses 643 Miscellaneous Expenses 644 Rents Total Operation

Maintenance 650 Maintenance Supervision & Engineering 651 Maintenance of Structures & Improvements 652 Maintenance of Water Treatment Plant Total Maintenance

Total Water Treatment Expenses

TRANSMISSION AND DlSTRlBUTlON EXPENSES

ODeration 660 Operation Supervision & Engineering 63,479 63,479 4,349 (3) (6) 67,828 67,828 661 Storage Facilities Expenses 662 Transmission & Distribution Lines Expenses 30,554 30,554 (1,538) (3) 29,O i 6 29,016 663 Meter Expenses 664 Customer Installation Expenses 665 Miscellaneous Expenses 4,143 4,143 4,143 4,143 666 Rents Total Operation 98,176 98,176 2,811 100,987 100,987

Maintenance 670 Maintenance Supervision & Engineering 671 Maintenance of Structures & lmprovements 672 Maintenance of Dist ReservoirslStandpipes 673 Maintenance of Mains 4,2 IO 4.210 5.790 (8) 10.000 10,000 674 Maintenance of Fire Mains 675 Maintenance of Services 1,000 (8) 1,000 1,000 676 Maintenance of Meters 2,000 (8) 2,000 2,000 677 Maintenance of Hydrants 2,000 (8) 2,000 2,000 678 Maintenance of Miscellaneous Plant 4,436 4,436 4,436 4,436 Total Maintenance 8,646 8,646 10,790 19,436 19,436

Total Transmission & Distribution Expenses

“UNAUDITED”

I, 1.1 1.111.11 “8, X..~.~...”l.”.”‘.l.~Il.l*IY .,.. .-*.ll,*l..,”Y, Prepared by Michael D. Griftith HARDY COUNTY PUBLIC SERVICE DISTRICT - WATER Statement A DETAIL OF OPERATION AND MAINTENANCE EXPENSES Schedule 2 FISCAL YEAR ENDED JUNE 30.2008 Sheet 3 of 3

Account Per Books Per Books Going Level Proforma Number Per Rooks Adjustments Adjusted Adjustments Going Level Ad.iustments Proforma (1) (2) (3) (4) (5) (6) (7) $ $ $ $ $ $ $

CUSTOMER ACCOUNTS EXPENSES

Ovcration 901 Supervision 902 Meter Reading Expenses 903 Customer Records & Collection Expenses 904 Uncollectible Accounts 4,611 (3) 4,611 1,580 (IO) 6,191 905 Miscellaneous Customer Accounts Expense Total Operation 4,611 4,6l I 1,580 6,191

907 Cuctomcr Service & Information Expenses 910 Promotion Expcnses

Total Customer Accounts Expenses 4,611 4,611 1,580 6,191

ADMlNlSTRATlVE AND GENERAL EXPENSES

Omration 920 Administrative and General Salaries 118.012 I18,012 16,158 (3) (6) 134,170 134.1 70 921 Office Supplies and Other Expenses 14.756 14,756 8,877 (3) (7) 23,633 23,633 922 Administrativc Expenses Transferred - Cr. 923 Outside Services Employed 38,210 38,210 38.210 38,210 924 Property Insurance 13,963 13.963 1,451 (3) (4) 15,414 15,414 925 Injuries and Damages 3,433 3,433 103 (6) 3,536 3,536 926 Employee Pensions & Benefits 79,45 I 79,45 1 25,737 (3) (8) 105.188 105,188 927 Franchise Requirements 928 Regulatory Commission Expense 2,786 2,786 1,604 (3) (8) 4,390 608 (11) 4,998 929 Duplieate Charges - Cr. 930.1 Institutional or Goodwill Advertising Expenses 930.2 Miscellaneous General Expense 29,608 29,608 29,608 29,608 930.3 Research &Development Expenses 931 Rents 7,000 7,000 (7,000) (3) Total Operation >307,2 I9 307219 354,150 608 354,758

932 Maintenance of General Plant

Total Administrative & Cencral Expenses 307,2 19 307,219 46,93 I 354,150 60 8 354,758

UNDISTRIBUTED ADJUSTMENTS Estimated increase in 0 & M expenses provided by Thrasher Engineering 112,763 112) 112,763 Adjustment - Planning

Total Operation & Maintenance Expenses 535,977 535,977 114,393 650,370 1 14,95 1 765,321

"UNAUDITED"

Prepared by Michael D.Gnffith HARDY COUNTY PUBLIC SERVICE IlISTRlCT - WATER Statement A TAXES OTHER THAN INCOME TAXES Schedule 4 FISCAL YEAR ENDED JUNE 30,2008

Per Books Per Books Going Level Proforma Per Books Adjustments Adjusted Adjustments Going Level Adjustments Proforma (1) (2) (3) (4) (5) (6) (7) $ $ $ $ $ $ $

F.I.C.A. 13,394 13,394 1,553 (3) (6) 14,947 14,947 Workers' Compensation 1,687 1,687 51 (6) 1,738 1,738 State Unemployment Municipal Taxes WV B & 0 Tax Franchise & License Tax Other

Total Taxes Other Than Income Taxes HARDY COUNTY PUBLIC SERVICE DISTRICT - WATER Statement A OTHER INCOME Schedule 6 ED JUNE 368,2008

Per Books Per Books Going Level Proforma Per Books Adjustments Adjusted Adjustments Going Level Adjustments Proforma (1) (2) (3) (4) (5) (6) (7) $ $ $ $ $ $ $

Interest income 13,071 13,071 (3,071) (8) 10,000 10,000 Other Income income from Non-utility operations 89,490 89,490 (89,490) (3)

Total Other Income HARDY COUNTY PUBLIC SERVICE DISTRICT - WATER Statement A OTHER INCOME DEDUCTIONS Schedule 7

Interest Expense Per Books Per Books Going Level Proforma Per Books Adjustments Adjusted Adjustments Going Level Adjustments Proforma (1) (2) (3) (4) (5) (6) (7) !fi $ $ $ $ $ $ Going Level Debt Holder USDA - 1988 10,856 10,856 10,856 10,856 USDA - 1990 1,875 1,875 1,875 1,875 USDA - 1994 13,630 13,630 13,630 13,630 USDA - Wardensville 10,968 10,968 10,968 10,968 USDA - Phase I11 12,521 12,521 12,521 12,521 USDA - Phase I11 A 21,765 2 1,765 2 1,765 21,765 Municipal Bond Commission 2,171 2,171 2,171 2,171 USDA - Phase IV 30,110 30,110 30,110 30,110 USDARD - South Fork Project 106,028 106,028 106,028 106,028

Total Going Level Income Deductions 209,924 209,924 209,924 209,924

Proforma Debt Holder WVIJDC (No interest expense)

Total Proforma Income Deductions

Total Other Income Deductions 209.924 209.924 209.924 209.924

"UNAUDITED"

Prepared by Michael D. Griffith HARDY COUNTY PUBLIC SERVICE DISTRICT - WATER Statement B RULE 42 EXHIBIT Schedule 1 BAKER AND MARVIN CHAPEL WATER PROJECTS Sheet 1 of 2 PLANT IN SERVICE FISCAL YEAR ENDED JUNE 30,2008

Balance Balance Average PSC Beginning Other End Monthly Acct. DESCRIPTION of Year Additions Retirements Charges of Year Balance $ $ $ $ $ $

Intangible Plant 301 Organization 302 Franchises and Consents 303 Miscellaneous lntangible Plant Total Intangible Plant

Source of Supply Plant 310 Land and Land Rights 311 Structures and Improvements 312 Collecting and Impounding Reservoirs 313 Lake, River and Other Intakes 75,173 75,173 75,173 314 Wells and Springs 315 Infiltration Galleries and Tunnels 316 Supply Mains 317 Other Water Source Plant Total Source of Supply 75,173 75,173 75,173

Pumping Plant 320 Land and Land Rights 13,250 10,066 23,3 16 18,283 321 Structures and Improvements 1,950,904 1 1,503 141,426 2,103,833 2,027,369 322 Boiler Plant Equipment 323 Other Power Production Equipment 324 Steam Pumping Equipment 325 Electric Pumping Equipment 2,067 2,067 2,067 326 Diesel Pumping Equipment 327 Hydraulic Pumping Equipment 328 Other Pumping Equipment Total Pumping Equipment 1,966,221 11,503 151,492 2,129,216 2,047,7I9

Water Treatment Plant 330 Land and Land Rights 331 Structures and lmprovements 332 Water Treatment Equipment Total Water Treatment Plant

Prmared bv Michael D. Griffith HARDY COUNTY PUBLIC SERVlCE DISTRICT - WATER Statement B RULE 42 EXHIBIT Schedule 1 BAKER AND MARVIN CHAPEL WATER PROJECTS Sheet 2 of 2 PLANT IN SERMCE FISCAL VEAR EN

Balance Balance Average PSC Beginning Other End Monthly Acct. DESCRIPTION of Year Additions Retirements Charges of Year Balance $ $ $ $ $ $

Transmission and Distribution Plant 340 Land and Land Rights 23,184 23,184 23,184 341 Structures and Tmprovements 342 Distribution Reservoirs and Standpipes 872.465 487,870 1,360,335 1,116,400 343 Transmission and Distribution Mains 8,456,700 21,235 1,327,868 9,805,803 9.1 3 1,252 344 Fire Mains 345 Services 140,024 904,440 1,044,464 592,244 346 Meters 787,904 54,298 1 11,690 953,892 870,898 347 Meter lnstallations 269,823 26,161 295,984 282,904 348 Hydrants 227,096 696 227,792 227,444 349 Other Transmission and Distribution Plant Total Transmission and Distribution Plant 10,777,196 76,229 2,858,029 13,711,454 12,244,325

General Plant 389 Land and Land Rights 390 Structures and Improvements 12,183 12,183 12,183 391 Office Furniture and Equipment 55,351 55,351 55,351 392 Transportation Equipment 34,366 34,366 34,366 393 Stores Equipment 394 Tools, Shop and garage Equipment 395 Laboratory Equipment 396 Power Operated Equipment 397 Communication Equipment 140,115 140,l 15 l40,l 15 398 Miscellaneous Equipment 78,442 5,236 34,761 118,439 98,441 399 Other Tangible Property Total General Plant 320,457 5,236 34,761 360,454 340,456

Total Plant in Service 1 3,139,047 92,968 3,044,282 16,276,297 14,707,672

Proforma Adjustmcnts: Proposed Project 9,954,250

Proforma 24,66 1,922 HARDY COUNTY PUBLIC SERVICE DISTRICT - WATER Statement C DETAIL OF DEBT CAPITAL ENDED JUNE 3

Outstanding Interest for Year Nominal Date Date of per Balance Debt Holder of Issue Maturity Sheet Rate Amount Principal Totals $ ?4 $ $ $

Going Level USDA - 1988 1988 2029 220,474 5.00 10,856 6,806 17,662 USDA - 1990 1990 2030 38,033 5 .OO 1,875 1,075 2,950 USDA - 1994 1993 2033 275,348 5 .OO 13,630 5,816 19,446 USDA - 1996 Wardensville 1996 2036 245,890 4.50 10,968 4,458 15,426 USDA - 1996 Phase I11 1996 2036 280,7 16 4.50 12,521 5,099 17,620 USDA - 1998 Phase I11 A 1998 2038 46 1,483 4.75 2 1,765 6,724 28,489 USDA - 1998 Phase IV 1998 2038 46,047 4.75 2,171 683 2,854 2001 Municipal Bond Commission 200 1 204 1 621,3 13 4.875 30,110 7,557 37,667 WVIJDC - 2002 A 2002 2043 1,090,320 -0- 31,376 3 1,376 WVIJDC - 2003 A 2003 2043 496,289 -0- 13,786 13,786 USDA/RD - South Fork Project 2008 2048 1,660,000 4.50 106,028 21,612 127,640

Total Going Level Debt Service 5,435,913 209,924 104,992 314,916

Proforma WVIJDC ($1,641,250 loan, 38 years, 0% Interest) 44.000 44.000

Total Proforma Debt Service 44,000 44,000

Total Debt Service 5,435,913 209.924 148.992 358.916 HARDY COUNTY PUBLIC SERVICE DISTRICT -WATER Statement D CUSTOMER'S BILL ANALYSIS Sheet 1 of 2 FISCAL YEAR EN

I Minimum (3,000 gallons) = $30.93 4,000 gallons = $38.40 4,500 gallons = $42.14 1 BLOCKING - GOING LEVEL Number Minimum Bills First Next Next All Over All Classes of M. Gals 3M 7M 40 M 50 M July 1,2007 through June 30,2008 ( 12 months) Bills Sold Rate Revenue Gallons Gallons Gallons Gallons Revenue (1) (2) (3) (4) (5) (6) (7) (8) (9) $ $ $

5/8 Inch Meter (Based on 3,000 gallons) 11,186 17,222.3 30.93 345,983 314 Inch Meter 12 2.1 46.39 557 1 InchMeter 124 376.8 77.3 1 9,586

, 1-112 Inch Meter 154.63 2 InchMeter 29 293.0 247.40 7,175 3 InchMeter 8 263.0 463.88 3,711 4 InchMeter 773.13 6 InchMeter 1,546.27 8 InchMeter 2,474.03

3.1 - 10 M. Gallons 9,941 48,396.2 29,823.0 18,573.2 10.1 - 50 M. Gallons 726 12,522.3 2,178.0 5,082.0 5,262.3 All Over 50 M. Gallons 121 15,110.8 363.0 847.0 4,840.0 9,060.8

22,147 94,186.5 32,364.0 24,502.2 10,102.3 9,060.8 Going Level Rates - $ 10.31 7.47 3.09 2.88 Average 1,846 4.253 Revenue Per Analysis - $ 367,012 333,673 183,031 31,216 26,095 941,027 Correction Factor 0.9800000

Going Level Annual Revenue: July 1,2007 through June 30,2008 ( 12 months) - $ 922,206

* Based on Case No. 08-2103-PWD-19A HARDY COUNTY PUBLIC SERVICE DISTRICT - WATER Statement D CUSTOMER’S BTLL ANALYSIS - PROFORMA Sheet 2 of 2 SCAL YEAR ENDED JUNE 30,2008 I Minimum (3,000 gallons) = $39.75 4,000 gallons = $49.35 4,500 gallons = $54.15 BLOCKING - PROFORMA Number Minimum Bills First Next Next All Over All Classes of M. Gals 3M 7M 40 M 50 M July 1,2007 through June 30,2008 ( 12 months) Bills Sold Rate Revenue Gallons Gallons Gallons Gallons Revenue (1) (2) (3) (4) (5) (6) (7) (8) (9) $ $ $ 5/8 lnch Meter (Based on 3,000 gallons) 11,186 17,222.3 39.75 444,644 314 Inch Meter 12 2.1 59.65 716 1 lnch Meter 124 376.8 99.40 12,326 1-1/4 Inch Meter 145.10 1-1/2 lnch Meter 198.75 2 InchMeter 29 293.0 3 18.00 9,222 3 Inch Meter 8 263.0 596.25 4,710 4 Inch Meter 993.75 6 lnchMeter 1,987.50 8 lnch Meter 3,180.00 10 lnch Meter 4,571.25

* 3.1 - 10 M. Gallons 10,577 50,622.2 3 l,73 1.0 18,891.2 10.1 - 50 M. Gallons 726 12,522.3 2,178.0 5,082.0 5,262.3 ** All Over 50 M. Gallons 229 19,730.3 687.0 1,603.0 9,160.0 8,280.3 22,891 101,032.0 34.596.0 25,576.2 14,422.3 8,280.3 Proforma Rates - $ 13.25 9.60 3.97 3.70 Average 1,908 4.414 Revenue Per Analysis - $ 47 1,678 458,397 245,532 57,257 30,637 1,263,501 Correction Factor 0.9800000

Proforma Annual Revenue: July 1,2007 through June 30,2008 ( 12 months) - .$ 1,238,231

* Includes estimated usage for 18 Baker residential customers and 35 Marvin Chapel residential customers @ 3,500 gallons per month ** Includes the following 9 additional non-residential customers with total annual estimated usage of 4,6 19,500 gallons: 3,204,000 E.A. Hawse -Nursing Home, Apart Complex, Medical Center 54,000 Mathias / Baker Fire Dept 3 10,000 East Hardy School 743,500 East Hardy Early Middle School (9 months) 100,000 Corner Mart Store & Deli 54,000 McKee Funeral Home 100,000 Louden Heights Mulch Plant 54,000 Capon Valley Bank 4,619,500 Total HARDY COUNTY PUBLIC SERVICE DISTRICT - WATER Statement D RULE 42 EXHIBIT Schedule 1 BAKER AND MARVIN CHAPEL WATER PROJECTS Sheet 1 of 2

PER BOOKS AND GOING LEVEL TARIFF

APPLICABILITY Applicable within the entire territory served

AVAILABILITY Available for general domestic, commercial and industrial water service.

RATES (customers with metered water suuolyJ

First 3,000 gallons used per month $10.3 1 per M gallons Next 7,000 gallons used per month $7.47 per M gallons Next 40,000 gallons used per month $3.09 per M gallons All over 50,000 gallons used per month $2.88 per M gallons

MINIMUM CHARGE No minimum bill will be rendered for less than the following:

518 inch meter $30.93 per month 314 inch meter $46.39 per month 1 inchmeter $77.3 1 per month 1 1/2 inch meter $154.63 per month 2 inchmeter $247.40 per month 3 inchmeter $463.88 per month 4 inchmeter $773.13 per month 6 inchmeter $1,546.27 per month 8 inchmeter $2,474.03 per month

RETURNED CHECK CHARGE A service charge equal to the actual bank fee assessed to the utility or a inaximum of $25.00 will be imposed upon any customer whose check for payment of charges is returned by their bank due to insufficient funds.

MUNICIPAL EXCISE TAX SURCHARGE The municipalities listed below, having imposed a public utility tax computed on the basis of two percent of the revenues from water sales by Hardy County Public Service District water within the corporate limits of such municipality, shall be billed a "surcharge" to the customers receiving service within said corporate limits.

The water utility is required to collect the utility tax pursuant to West Virginia Code $8-13-5a.

Customers receiving water service within the corporate limits of the specified municipality shall pay a surcharge based on the following surcharge rates:

Town of Moorefield Utility Excise Tax Rate 2% Surcharge Rate 2%

DELAYED PAYMENT PENALTY The above schedule is net. On all accounts not paid in full when due, ten percent (10%) will be added to the net current amount unpaid. This delayed payment penalty is not interest and is to be collected only once for each bill where it is appropriate. HARDY COUNTY PUBLIC SERVICE DISTRICT - WATER Statement D RULE 42 EXHIBIT Schedule 1 BAKER AND MARVIN CHAPEL WATER PROJECTS Sheet 2 of 2

PER BOOKS AND GOING LEVEL TARIFF

RECONNECTION CHARGE $25.00 To be charged whenever the supply of water is turned off for violations of rules, non-payment of bills, or fraudulent use of water.

TAP FEE The following charge is to be made whenever the utility installs a new tap to serve an applicant

A tap fee of $400 00 will be charged to customers who apply for service outside of a certificate proceeding before the Commission for each new tap to the system.

LEAK ADJUSTMENT $1.52 per 1,000 gallons of water is to be used when the bill reflects unusual consumption which can be attributed to eligible leakage on customer's side of meter. This rate is to be applied to all such consumption above the customer's historical average usage.

SECURITY DEPOSIT A deposit of $50.00 or two-twelfths (2/12) of the average annual usage of the applicants specific customer class, whichever is greater.

PRIVATE FIRE PROTECTION SERVICE Where connections, hydrants, sprinklers, etc., on private property are maintained by customer:

2 inch service line with hydrants, sprinklers, and/or connectic $5.00 per month 3 inch service line with hydrants, sprinklers, and/or connectic $9.00 per month 4 inch service line with hydrants, sprinklers, and/or connectic $15.00 per month 6 inch service line with hydrants, sprinklers, and/or connectic $30.00 per month 8 inch service line with hydrants, sprinklers, and/or connectic $50.00 per month 10 inch service line with hydrants, sprinklers, and/or connectic $60.00 per month 12 inch service line with hydrants, sprinklers, andor connectic $75.00 per month

Prenared bv Michael l3 Griffith HARDY COUNTY PUBLIC SERVICE DISTRICT - WATER Statement D RULE 42 EXHIBIT Schedule 2 BAKER AND MARVIN CHAPEL WATER PROJECTS Sheet 1 of2

PROFORMA TARIFF

APPLICABILITY Applicable within the entire territory served

AVAILABILITY Available for general domestic, commercial and industrial water service.

( I ) RATES (customers with metered water suuolv)

(I) MINIMUMCHARGE No minimum bill will be rendered for less than the following: 518 inch meter $39.75 per month 314 inch meter $59.65 per month 1 inchmeter $99.40 per month (N) 1 1/4 inch meter $145.10 per month 1 1/2 inch meter $198.75 per month 2 inchmeter $318.00 per month 3 inchmeter $596.25 per month 4 inchmeter $993.75 per month 6 inchmeter $1,987.50 per month 8 inchmeter $3,180.00 per month (N) 10 inch meter $4,571.25 per month

(C) RETURNED CHECK CHARGE A service charge of $25.00 will be imposed upon any customer whose check for payment of charges is returned by the bank for any reason.

MUNICIPAL EXCISE TAX SURCHARGE The municipalities listed below, having imposed a public utility tax computed on the basis of two percent of the revenues from water sales by Hardy County Public Service District water within the corporate limits of such municipality, shall be billed a “surcharge” to the customers receiving service within said corporate limits.

The water utility is required to collect the utility tax pursuant to West Virginia Code $8-13-5a.

Customers receiving water service within the corporate limits of the specified municipality shall pay a surcharge based on the following surcharge rates:

Town of Moorefield Utility Excise Tax Rate 2% Surcharge Rate 2%

Preuared bv Michael TI Griffith HARDY COUNTY PUBLIC SERVICE DISTRICT -WATER Statement D RULE 42 EXHIBIT Schedule 2 BAKER AND MARVIN CHAPEL WATER PROJECTS Sheet 2 of 2

PROFORMA TARIFF

(C) WATER DISCONNECT-RECONNECT-ADMINISTRATIVEFEES Whenever water service has been disconnected for any reason, a disconnection fee of $25.00 shall be charged; or in the event the delinquent water bill is collected in the field, an administrative fee of $25.00 shall be charged. Whenever water service which has been previously disconnected for any reason is reconnected, a reconnection fee of $25.00 shall be charged.

(N) A tap fee of $150.00 will be charged to customers applying for service before construction is completed adjacent to the customers premises in connection with a certificate proceeding before the Commission. This pre-construction tap fee will be invalid after the completion of construction adjacent to an applicant's premises that is associated with a certificate proceeding.

A tap fee of $400 00 will be charged to all customers who apply for service outside of a certificate proceeding before the Commission for each new tap to the service.

( I ) (C) LEAK ADJUSTMENT An amount not to exceec $4.00 per 1,000 gallons is to be used when a bill reflects unusual consuinption which can be attributed to eligible leakage on the customer's side of the meter. This rate shall be applied to all such consumption above the customer's historical usage. The District shall establish a nondiscriminatory policy regarding this provision for leak adjustments.

(N) EFT, CREDIT CARD. ACH AND DROP BOX PAYMENTS A service charge will be imposed on EFT, Credit Card, ACH or Drop Box payments. The amount shall be equal to the actual charges to the utility from the financial institution for processing payment.

( I ) PRIVATE FIRE PROTECTION SERVICE( * ) Where connections, hydrants, sprinklers, etc., on private property are maintained by customer:

* Same as WVAWC

( I ) Indicates increase (C) Indicates change in text (N) Indicates new HARDY COUNTY PUBLIC SERVICE DISTRICT - WATER Statement E ALLOCATION OF COST OF SERVICE ENDED JUNE 30,2008

LINE NO.

1 2 3 4 5 6 7 8 9 10 11 12 IF APPLICABLE, THE DISTRICT REQUESTS A WAIVER OF THE REQUIREMENT FOR 13 14 FILING THIS SCHEDULE, OR IN THE ALTERNATIVE THAT THE COMMISSION STAFF COMPLETE ONE. 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 HARDY COUNTY PUBLIC SERVICE DISTRICT -WATER Statement F COMPARATIVE BALANCE SHEET - PER BOOKS Sheet 1 of 2 FISCAL YEARS ENDE JUNE 30,200’7 AND JUNE 30,200

YEARS ENDED 6/30/2007 6/30/2008 $ $ ASSETS AND OTHER DEBITS

Utility Plant Plant 16,298,766 15,542,716 Less: Accumulated Depreciation (2,900,734) (3,044,8 15)

Net Utility Plant 13,398,032 12,497,901

Other Property and Investments Non-Utility Property Other Investments Sinking Funds 152,469 170,790 Depreciation Fund 164,337 120,156 Other Special Funds 119,563 72,825

Total Other Property and Investments 436,369 363,77 1

Current and Accrued Assets Cash 16 1,925 3 1,029 Special Deposits Temporary Cash Investments 232,039 92,128 Customer Accounts Receivable 634 4,926 Other Accounts Receivable Accum Provision for Uncollectible Accts - cr. Prepayments 4,844 5,843 Interest and Dividends Receivable 130 630 Miscellaneous Current and Accrued Assets 67,866 166,574

Total Current Assets 467,438 301,130

Deferred Debits Unamortized Debt Discount and Expense Preliminary Survey and Investigation Charges Clearing Accounts Miscellaneous Deferred Debits

Total Assets and Other Debits 14,30 1,839 13,162,802

Per Annual Reports for the Fiscal Years Ended June 30, 2007 and June 30,2008

“UNAUDITED” HARDY COUNTY PUBLIC SERVICE DISTRICT -WATER Statement F COMPARATIVE BALANCE SHEET - PER BOOKS Sheet 2 of 2 SCAL YEARS EN ED JUNE 30,2009 AND JUNE 30,200

YEARS ENDED 613012007 613 0120 0 8

LIABILITIES AND OTHER CREDITS

Liabilities Other Paid-In Capital Retained Earnings (1,223,121) (2,295,167)

Total Liabilities (1,223~21) (2,295,167)

Long Term Debt Bonds 3,775,913 3,692,530 Other Long-Term Debt

Total Long Term Debt 3,775,913 3,692,530

Current and Accrued Liabilities Notes Payable 1,660,000 1,660,000 Accounts Payable 29,101 15,932 Payable to Associated Companies Customer Deposits 30,57 I 27,061 Taxes Accrued 2,963 5,927 Interest Accrued 3,482 3,420 Matured Long-Term Debt Miscellaneous Current and Accrued Liabilities 9.184 17,628

Total Current and Accrued Liabilities 1,735,301 1.729.968

Contributions in Aid of Construction 10,013,746 10,025,646

Deferred Credits Other Deferred Credits 9,825 Customer Advances for Construction

Total Deferred Credits 9,825

Operating Reserves Miscellaneous Operating Reserves

Accumulated Deferred Income Taxes Other

Total Liabilities and Other Credits 14,301,839 13.1 62.802

Per Annual Reports for the Fiscal Years Ended June 30, 2007 and June 30,2008 HARDY COUNTY PUBLIC SERVICE DISTRICT - WATE Statement G DETAIL OF ADJUSTMENTS Sheet 1 of 4

INCREASE Adjustment Number GOING LEVEL ADJUSTMENTS $

(1) Sales of Water Service: Metered Sales 171,064

To reflect increase in revenues per Case No. 08-2103-PWD-19A

(2) Other Operating Revenue: Miscellaneous Service Revenue and Other Water Revenue (9,003)

To remove other revenue as non-recurring revenue.

(3) Account # 60 1: Source of Supply Expenses - Purchased Water 22,392 Account # 623: Pumping Expenses - Fuel or Power Purchased for Pumping 252 Account # 660: Transmission and Distribution Expenses - Operation Supervision and Engineering 2,373 Account ## 662: Transmission and Distribution Expenses - Transmission and Distribution Lines Expense (1,538) Account # 904: Customer Accounts Expense - Uncollectible Accounts 4,611 Account # 920: Administrative and General Expenses - Administrative and General Salaries 12,250 Account # 92 1: Administrative and General Expenses - Office Supplies and Other Expenses 7,752 Account # 924: Administrative and General Expenses - Property Insurance 50 Account # 926: Administrative and General Expenses - Employee Pensions and Benefits 813 Account # 928: Administrative and General Expenses - Regulatory Commission Expenses 656 Taxes Other Than Income Taxes: F.I.C.A. 1,118 Rents (7,000) Income from Non-Utility Operations (89,490)

To reflect Staffs adjustments in Case No. 08-2103-PWD-19A

"UNAUDITED"

Prepared by Michael D. Griffith HARIbY COUNTY PUBLIC SERVICE DISTRICT - WATE Statement G DETAIL OF ADJUSTMENTS Sheet 2 of 4 ED JUNE 30,2008 INCREASE Adjustment Number GOING LEVEL ADJUSTMENTS (continued) $

(4) Account # 60 1: Source of Supply Expenses - Purchased Water 1 1,939 Account # 924: Administrative and General Expenses - Property Insurance 1,40 1

To record an estimated 10% additional increase in expenses.

(5) Account # 623 : Pumping Expenses - Fuel or Power Purchased for Pumping 4,668

To record an estimated 20% additional increase in expenses.

(6) Account # 660: Transmission and Distribution Expenses - Operation Supervision and Engineering 1,976 Account # 920: Administrative and General Expenses - Administrative and General Salaries 3,908 Account # 925: Administrative and General Expenses - Injuries and Damages 103 Taxes Other Than Income Taxes: F.I.C.A. 43 5 Taxes Other Than Income Taxes: Workers' Compensation 51

To record an estimated 3% additional increase in expenses.

(7) Account # 92 1: Administrative and General Expenses - Office Supplies and Other Expenses 1,125

To record an estimated 5% additional increase in expenses. HARDY COUNTY PUBLIC SERVICE DIST Statement G DETAIL ENTS Sheet 3 of 4 FISCAL JUNE 30,200 INCREASE Adjustment Number GOING LEVEL ADJUSTMENTS (continued) $

(8) Account # 63 1: Pumping Expenses - Maintenance of Structures and Improvements 3,000 Account # 633: Pumping Expenses - Maintenance of Pumping Equipment 7,000 Account # 673: Transmission and Distribution Expenses - Maintenance of Mains 5,790 Account # 675: Transmission and Distribution Expenses - Maintenance of Services 1,000 Account # 676: Transmission and Distribution Expenses - Maintenance of Meters 2,000 Account # 677: Transmission and Distribution Expenses - Maintenance of Hydrants 2,000 Account # 926: Administrative and General Expenses - Employee Pensions and Benefits (OPEB Expense) 8,640 Account # 926: Administrative and General Expenses - Employee Pensions and Benefits (PERS) 3,000 Account # 926: Administrative and General Expenses - Employee Pensions and Benefits (Health Insurance) 13,284 Account # 928: Administrative and General Expenses - Regulatory Commission Expenses 94 8 Interest Income (3,071)

To record anticipated adjustments in operating expenses/income. HARDY COUNTY PUBLIC SERVICE DIST Statement G DETAIL OF ADJUSTMENTS Sheet 4 of 4 ENDED JUNE 3 INCREASE Adjustment Number PROFORMA ADJUSTMENTS $

(9) Sales of Water Service: Metered Sales 3 16,025

To record increase in billed revenues based on the proposed rates and charges.

Account # 924: Billing and Collecting Expenses - Uncollectible Accounts 1,580

To record uncollectible accounts expense at a rate of 0.5% of billed revenues.

Account # 928: Administrative and General Expenses - Regulatory Commission Expense 60 8

To record PSC Assessment at a rate of $0.40 per $100 of operating revenues.

Undistributed Adjustments 1 12,763

To record estimated increase in Operation and Maintenance expenses provided by Thrasher Engineering. HARDY COUNTY PUBLIC SERVICE DISTRICT - WATER Statement H CASH FLOW ANALYSIS FISCAL YEAR ENDED JUNE 30,2008

BAKER AND MARVIN CHAPEL WATER PROJECTS

Per Books Per Books Adjusted Going Level Proforma $ s s s A\,ailable Cash Metered Sales 751,142 751,142 922,206 1,238,231 Forfeited Discounts 11,368 11,368 11,368 11,368 Miscellaneous Service Revenues 1,855 1,855 Rents from Water Property Other Water Revenue 7,148 7,148 Interest Income 13,071 13,071 10.000 10,000 Income from Non-utility operations 89,490 89,490

Total Available Cash 874,074 874,074 943,574 1,259,599

Cash Requirements Operation and Maintenance Expenses 535,977 535,977 650,370 765,321 Tam Other Than Income Takes 15,081 15,081 16,685 16,685

Total Cash Requirements 55 1,058 551,058 667,055 782,006

Cash Available for Debt Service (A) 323,016 323,016 276,519 477,593

Debt Service Requirements (Long Term) USDA - 1988 Interesl Expense 10,856 10,856 10,856 10,856 Principal Reduction 6,806 6.806 6,806 6,806 USDA - 1990 lnterest Expense 1,875 1,875 1.875 1,875 Principal Reduction 1,075 1,075 1,075 1,075 USDA - 1994 Interest Expense 13,630 13,630 13,630 13,630 Principal Reduction 5,816 5,816 5,816 5,816 USDA - Wardensville Interest Expense 10,968 10,968 10,968 10,968 Principal Reduction 4,458 4.458 4,458 4,458 USDA - Phase 111 Interest Expense 12,521 12,521 12,521 12321 Principal Reduction 5,099 5,099 5,099 5,099 USDA - Phase 111 A Interest Eipense 21,765 2 1,765 21,765 21,765 Principal Reduction 6,724 6,724 6:724 6,724 Municipal Bond Commission Interest Expense 2,171 2,171 2,171 2,171 Principal Reduction 683 683 683 683 USDA -Phase IV Interest Expense 30,110 30,110 30,110 30,110 Principal Reduction 7.557 7,557 7,557 7,557 WV Infrastructure Bonds lnterest Expense Principal Reduction 31,376 31,376 31,376 31,376 WV Infrastructure Bonds lnterest Expense Principal Reduction 13,786 13,786 13,786 13,786 USDAIRD - South Fork Project Interest Expense 106,028 106,028 106,028 106,028 Principal Reduction 21,612 21,612 21.612 21,612 Proposed Loan - Interest Expense Principal Reduction 44,000

Sub-Total (B) 314,916 3 14.91 6 314,916 358,916

Debt Service Reserve Requirements Debt Service Reserve 21,047 Fully Funded 21;047 25,447 Renewal & Replacement Reserve 21,852 21,852 23,589 31 ?490

Sub-Total 42,899 21.852 44.636 56,937

Total Long Term Debt Service and Reserve Requirements 357,815 336.768 359.552 415,853

Debt Service Coverage Factor (A) / (B) 102.57% 102.57% 87.81% 133.07%

Remaining Cash Surplus (Deficit) (34,799) (1 3.752) (83,033) 61,740

Capital Additions 92,968 92.968 21.552 * 21,552 * Functional Replacement of Capital per Tluasher Engineering. Inc. 12,500 Escrow Account for Phase 1 Tank Painting per Tiuasher Engineering, Inc. 7,500 Escrow Account for WTP Membrane Replacement per Tluasher Engineering. Inc. 20,000 Total Capital Additions 61,552

* Ordinary Capital Additions approved by the Commission in Case # 08-2103-PWD-19A

"UNAUDITED"

. .I P.S.C. W: Va. No. 9 Canceling P.S.C.W. Va. No. 8

HARDY COUNTY PUBLIC SERVICE DISTRICT, a public utility

OF MOOREFIELD, WEST VIRGINIA

RATES, RULES AND REGULATIONS FOR FURNISHING WATER

in Wardensville area extending to WV Routes 10, 10/2, 10/3, 10/4, 10/5, 10/7 (FisherKessel areas), WV Route 6 McNeill, and 23/1 (Dumpling Run), NEW PROJECTS AREA: US 220 North (Old Fields), WV Route 220/1,220/2,2,2/1,2/2 (Old Fields, Flats areas) and the Ri@3itestown Water project - WV 10, 1015 @g, Critestown), US Route 220 South, WV Route 55, US Route 220 North approximately eight miles, WV Route 14 (Dover Hollow), WV Route 15 (Cunningham Lane), West Virginia

Filed with THE PUBLIC SERVICE of WEST VIRGINIA

Issued August 11,2009 Effective for all service rendered on and after August 5,2009 or as otherwise provided herein

Issued by authority of an Order of the Public Service Commission of West Virginia in Case No. 08-2103-PWD-19A final August 5,2009 or .as otherwise provided herein.

Issued by Hardy County Public Service District, a public utility HARDY COUNTY PUBLIC SERVICE DISTRICT (WATER) P.S.C. W.VA. TariffNo. 9 Original Sheet No. 1

RULES AND REGULATIONS

I. Rules and Remilations for the Government of Water Utilities, adopted by the Public Service Commission of West Virginia, and now in effect, and all amendments thereto and modifications thereof hereafter made by said Commission. HARDY COUNTY PUBLIC SERVICE DISTRICT (Water) P.S.C. W.VA. TdNo.9 Original Sheet No. 2

APPLICABILITY Applicable within the entire territory served.

(1) RATES (Customers with metered water supply) First 3,000 gallons used per month $10.3 1 per 1,000 gallons Next 7,000 gallons used per month $ 7.47 per 1,000 gallons Next 40,000 gallons used per month $ 3.09 per 1,000 gallons All over 50,000 gallons used per month $ 2.88 per 1,000 gallons

(C,I) MINlMuMCHARGE No minimum bill will be rendered for less than the following:

5/8 inchmeter $ 30.93 3/4 inchmeter $ 46.39 1 inch meter $ 77.31 1-112 inch meter $ 154.63 2 inch meter $ 247.40 3 inch meter $ 463.88 4 inch meter $ 773.13 6 inch meter $1,546.27 8 inch meter $2,474.03

RETURNED CHECK CHARGE A service charge equal to the actual bank fee assessed to the district or a maximum of $25.00 will be imposed upon any customer whose check for payment of charges is returned by the bank due to insufficient funds.

(C) Indicates change in text o> Indicates increase HARDY COUNTY PUBLIC SERVICE DISTRICT (Water) P.S.C. W.VA. Tariff No. 9 Original Sheet No. 3

MUNICIPAL EXCISE TAX SURCHARGE The municipality listed below, having imposed a public utility tax computed on the basis of two percent of the revenues from water sales by Hardy County Public Service District water within the corporate limits of such municipality, shall be billed as a “surcharge” to the customers receiving service within said corporate limits.

The water utility is required to collect the utility tax pursuant to West Virginia Code $8-13- 5a.

Customers receiving water service within the corporate limits of the specified municipality shall pay a surcharge based on the following surcharge rates.

Town of Moorefield Utility Excise Tax.Rate 2% Surcharge Rate 2%

RECONNECTION CHARGE $25 .OO To be charged whenever the supply of water is turned off for violations of des, non- payment of bills, or fraudulent use of water.

TAP FEE The following charge is to be made whenever the utility installs a new tap to serve an applicant:

A tap fee of $400.00 will be charged to customers who apply for service outside of a certificate proceeding before the Commission for each new tap to the system.

(I) LEAK ADJUSTMENT $1.52 per 1,000 gallons of water is to be used when the bill reflects unusual consumption which can be attributed to eligible leakage on customer’s side of meter. This rate is to be applied to all such consumption above the customer’s historical average usage.

(I) Indicates increase

T:\TAIUFFS\WATERWDY_cNIy_#9W-(ctJRRE?$r).DOC HARDY COUNTY PUBLIC SERVICE DISTRICT (Water) P.S.C. W.VA. Tariff No. 9 Original Sheet No. 4

SECURITY DEPOSIT A deposit of $50.00 or two-twelfths (2/12) of the average annual usage of the applicant's specific customer class, whichever is greater.

(N) PRIVATE FIFE PROTECTION SERVICE Where connections, hydrants, sprinklers, etc., on private property are maintained by customer:

2-inch service line with hydrants, sprinklers, and/or connections $ 5.00 per month 3-inch service line with hydrants, sprinklers, and/or connections $ 9.00 per month 4-inch service line with hydrants, sprinklers, and/or connections $15.00 per month 6-inch service line with 'hydrants, sprinklers, and/or connections . $30.00 per month 8-inch service line with hydrants, sprinklers, and/or connections $50.00 per month 10-inch service line with hydrants, sprinklers, andor cannectiqns $60.00 per month 12-inch service line with hydrants, sprinklers, -.. -. . and/or connections $75 ;00 per month

(N) Indicates new

T:\TMuFFs\wAIFR~Y-C~-#9W_(C~~.~C This contract for the sale and purchase of water is entered into as of the 20th day of April, 1993, betueen the Town of Wardensville, P.O. Box 7, Wardensville, West Virginia, 26851, hereinafter referred to as ”Seller” and the Hardy County Public Service District, P.O. Box 209, Moorefield, West Virginia, 26836, hereinafter referred to as “Purchaser”.

WITNESSETH:

WHEREAS, the Purchaser is organized and established under the provisions of Chapter 16, Article 13A, of the Code of West Virginia, for the purpose of construction and operating a water supply distribution system serving water users within the area described in plans now on file in the Office of the Purchaser and to accomplish this purpose, the Purchaser will require a supply of treated water, and

WHEREAS, the Seller owns and operates a water supply distribution system with a capacity currently capable of serving the present customers of the Seller’s system and the estimated number of water users to be served the said Purchaser as shown in the plans of the system now on file in the Office of the Purchaser, and

WHEREAS, by Resolution enacted on the 11th day of March, 1993, by the Seller, the sale of water to the Purchaser in accordance with the provisions of the said Resolution was approved, and the execution of this contract carrying out the said Resolution by the Mayor and attested by the Recorder, was duly authorized, and

WHEREAS, by Resolution of the Board of Directors of the Purchaser,

enacted on the IC” day of &t~!~t , 1993, the purchase of water from 4 the Seller in accordance with the tern set forth in the said resolution was approved, and the execution of this contract by the President (or Chairman, or other designated official) and attested by the Secretary was duly authorized;

NOW THEREFORE, in consideration of the foregoing and the mutual agreements hereinafter set forth, I”‘ I”‘

1. (Quality and Quantity) To furnish the Purchaser at the point of delivery hereinafter specified, during the term of this contract or any renewal or extension thereof, potable treated water meeting applicable purity standards of the State Board of Health in such quantity as may be required by the Purchaser not to exceed 750,000 gallons per month. 2. (Point of Delivery and Pressure) That water will be furnished at a reasonable constant pressure calculated at 40 p.s.i., or the pressure available subject to tank water level, from an existing six (6) inch main supply at two points. One is located West of Wardensville along W.Va.. Route 55/259 and the second is located South of Wardensville along Trout Run. Please reference attached map. If a greater pressure than that normally available at the point of delivery is required by the Purchaser, the cost of providing such greater pressure shall be borne by the Purchaser. Emergency failures of pressure or supply due to main supply line breaks, power failure, flood, fire and use of water to fight fire, earthquake or other catastrophe shall excuse the Seller from this provision for such reasonable period of time as may be necessary to restore service. 3. (Billing Procedure) To furnish the Purchaser at the above address not later the first day of each month, with an itemized statement of the amount of water furnished the Purchaser during the preceding month.

4. Residual chlorine in water supplied shall be guaranteed only at point of delivery.

B. -Purchaser-: 1. (Metering Equipment) To furnish, install, operate, and maintain at its own expense at point of delivery, the necessary metering equipment, including a meter house or pit, and required devices of standard type for properly measuring the quantity of water delivered to the Purchaser and to calibrate such metering equipment whenever requested by the Seller but not more frequently than once every twelve (12) months. A meter registering not more than two percent (2%) above or below the test result shall be deemed to be accurate. The previous readings of any meter disclosed by test to be inaccurate shall be corrected for the three months previous to such test in accordance with the percentage of inaccuracy found by such tests. If any meter fails to register for any period, the amount of water furnished during such period shall be deemed to be the amount of water delivered in the corresponding period immediately prior to the failure, unless Seller and Purchaser shall agree upon a different amount. The metering equipment shall be read on the last non-holiday weekday of each month. An appropriate official of the Seller at all reasonable times shall have access to the meter for the purpose of verifying its readings. 2. (Rates and Payment Date) To pay the Seller, not later than the 10th dzy of each month, €or water delivered in accordance with the following schedule of rates: A. At the tariff rate for Sale for Resale. Seller agrees to seek an initial sale-for-resale rate of $1.10 per thousand gallons, to be effective when water is first delivered under this contract. Sales shall not exceed 750,000 gallons per month. 3, (Connection Fee) The connection fee shall be the installation of a well suitable in quality and quantity to provide for the Hardy County Public Service District's usage, as well as td'new 75 gpm water booster pumps and all necessary piping and valves dm

---e C. It is ---e P Suer icnd t& -: -: 1. (Delivery of Water) That thirty (30) days prior to the estimated date of completion of construction of the Purchaser's water supply distribution system, the Purchaser will notify the Seller in writing the date for the initial delivery of water. 2. (Water for Testing) When requested by the Purchaser the Seller will make available to the contractor at the'point of delivery, or other point reasonably close thereto, water sufficient for testing, flushing, and trench filling the system of the Purchaser during construction, irrespective of whether the metering equipment has Seen installed at that time, at a flat charge of $1.10 per 1,000 gallons which will be paid by the contractor or, on his failure to pay, by the Purchaser. c 3. (Failure to Deliver) That the Seller will, at all times, operate and maintain its system in an efficient manner and will take -.

such action as may be necessary to furnish the Purchaser with quantities of water required by the Purchaser. Temporary or partial failures to deliver water shall be remedied with all possible dispatch. In the event of an extended shortage of water, or the supply of water available r to the Seller is otherwise diminished over an extended period of time, the supply of water to Purchaser's consumers shall be reduced or diminished in the same ratio or proportion as the supply to the Seller's consumers is reduced or diminished. 4. (Modification of Contract) That the provisions of this contract pertaining to the schedule of rates to be paid by the Purchaser for water delivered are subject to modification. Said rates may be changed at any time by the Seller by following the statutory procedures for such rate changes in effect at the time of the proposed rate changes. Purchaser shall have such rights to protest said changes as are granted by statute at the time of the proposed changes. Other provisions of this contract may be modified of altered by mutual agreement. 5. (Regulatory Agencies) That this contract is subject to such rules, regulations, or laws as may be applicable to similar agreements in this State and the Seller and Purchaser will collaborate in obtaining such permits, certificates, or the like, as may be required LO ccmply therewith. 6. (Miscellaneous) That the construction of the water supply distribution system by the Purchaser is being financed by a loan made os insured by and/or a grant from the United States of America, acting through the Fanners Home Administration of the United States Department of Agriculture, and the provisions hereof pertaining to the undertakings of the Purchaser are conditioned upon the approval, in writing, of the State Director of the Fanners Home Administration.

7. (Successor to the Purchaser) That in the event of any occurrence rendering the Purchaser incapable of performing under this contract, any successor of the Purchaser, whether the result of legal process, assignment, or otherwise, shall succeed to the rights of the Purchaser he reunde r . . .-

IN WITNESS WHEREOF, the parties hereto, acting under authority of their respective governing bodies, have caused this contract to be duly executed in four (4) counterparts, each of which shall constitute an original.

Seller:

TOWN OF WARDENSVTLLE, WEST VIRGINIA A

Attest : Recorder

At:esc : 'lice Chairman

This contract is approved on behalf of the Farmers Home Administration this the day

By :

Tr,5

AMENDMENT TO WATER PURCHASE CONTRACT

This AGREEMENT, dated the 8th day of June ,2006, by and between the

TOWN OF WARDENSVILLE, hereinafter referred to as “Seller”, and the HARDY COUNTY

PUBLIC SERVICE DISTRICT, hereinafter referred to as “Purchaser”.

WHEREAS, Seller and Purchaser are parties to that certain Water Purchase Contract, dated

April 20,1993; and

WHEREAS, Purchaser is planning to extend water service to the Marvin Chapel area of

Hardy County and desires to purchase water from Seller to serve said extension, pursuant to the terms of said Water Purchase Contract; and

WHEREAS, Seller and Purchaser desire to amend said Water Purchase Contract in order to add thereto one additional point of delivery which will provide water for Purchaser’s Marvin Chapel extension.

NOW, THEREFORE, WITNESSETH, in consideration of the above mutual premises and the promises made herein, the parties hereto agree as follows:

1. Seller agrees to furnish water to Purchaser from Seller’s existing 8”water line, at a point east

of the Town of Wardensville, along County Rt. 5, and near to the Seller’s existing 300,000

gallon water tank. (The approximate location of said point is shown on the attached map

entitled “Hardy County Public Service District County Route 5 Water Line Extension to

Marvin Chapel”).

2. In all other respects, the terms of the Water Purchase Contract, dated April 20, 1993, are not

changed and shall remain in full force and effect .

IN WITNESS WHEREOF, the TOWN OF WARDENSVILLE, amunicipal corporation, and

1 6. the HARDY COUNTY PUBLIC SERVICE DISTRICT, a public corporation and political

subdivision of the State of West Virginia, have caused these presents to be signed and their seals

affixed by their proper officers thereunto duly authorized, on this 8th day of

June , 2006.

TOWN OF WARDENSVILLE,

Its Mayor

HARDY COUNTY PUBLIC SERVICE DISTRICT, a public corporation and political subdivision of the State of West Virginia

By: ha, Its Cl42kman

2 bt STATE OF WEST VIRGINIA COUNTY OF HARDY, to-wit:

The foregoing instrument was acknowledged before me this= nday of

the TOWN OF WARDENSVILLE, municipal corporation, on behalf of said

corporation.

My commission expires: LmYkbp STATE OF WEST VIRGINIA COUNTY OF HARDY, to-wit:

The foregoing instrument was acknowledged before me this@ 4 day of

2006, by Chairman of

the HARDY COUNTY PUBLIC SERVICE DISTRICT, a public corporation, on behalf of said

corporation. n

Notary Public

My commission expires: a7:abIb

THIS INSTRUMENT WAS PREPARED BY: Thomas R. Michael, WV Bar #2546 P.0 Box 250 Lost Creek, WV 26385 3004-745-5904

Name Meter Adress Pd. TaD Fee Patrick Buckley 99 Hillcrest Dr. ck #I388 Von Wright 3176 North Mtn. Rd. ck#5761 . Daniel Buckley 2771 North Mtn. Rd. ck #3662 Jerry W. Siever 1502 North Mtn. Rd. ck #2201 Eunice Snyder 1702 North Mtn. Rd. ck #8853 James R. Webber, Jr. 757 Moonrise Dr. ck #821 Robert Dare 111 Moonrise Dr. ck #3404 Joseph & Virginia Gainer Moonrise Road Ck# 641 9 First Baptist Church 1500 North Mtn. Rd. ck# 4580 James Pierce 2540 North Mtn. Rd. ck# 3483 Bruce Codwise 1532 North Mtn. Rd. Cash Kathy Fishel 2888 North Mtn. Rd. ck# 7692 Joseph Hockman 65 Pine View Road Cash Charles & Laura Sine 1701 North Mtn. Rd. ck# 5893 William H. Mollohan 3385 North Mtn. Rd. ck#4376 Charles A. Hobbie Mt. View Acres #I4 Ck#6168 Greg Smith 237 Ridge Runner Rd ck#338 Refunded 3/4/08 Jeanna Miller 1442 North Mtn Rd Ck#4636 Danny Strawderman 3415 North Mt Rd ck#l971 Kevin & Tammy Miller 32135 SR 55 c k#3800 Sandra Walker 32140 SR 55 ck#1911 Buddy Davis 32136 State Rd 55 ck#1911 Phyllis Copeland 32472 SR 55 ck#507 Phyllis Copeland 32472 SR 55 ck#507 Phyllis Copeland 32472 SR 55 ck#507 Chestnut Ridge Prop,LLC Lot .68 acre ck#1496 Chestnut Ridge Prop,LLC Lot 1 ck#1496 Chestnut Ridge Prop,LLC Lot 2 ck#1496 Chestnut Ridge Prop,LLC Lot 3 ck#1496 Chestnut Ridge Prop,LLC Lot 4 ck#l496 Chestnut Ridge Prop,LLC Lot 5 ck#1496 Chestnut Ridge Prop,LLC Lot 6 c k#l496 Chestnut Ridge Prop,LLC Lot 7 ck#1496 Ctiestnut Ridge Prop,LLC Lot 8 ck#l496 Chestnut Ridge Prop,LLC Lot 9 ck#1496 Chestnut Ridge Prop,LLC Lot 10 ck#l496 Chestnut Ridge Prop,LLC Lot 11 ck#l496 Chestnut Ridge Prop,LLC Lot 14 ck#l496 Chestnut Ridge Prop,LLC Lot 15 ck#l496 Chestnut Ridge Prop,LLC Lot 16 ck#l496 Kevin Miller 32135 State Rt 55 ck#3800 .c&E peter Adress Pd. tao Fee Johnnie Hoover Old Baker Road Cash Johnnie Hoover Rental Cash Larry MillerlPenny Poe Parker Hollow Road ck# 1521 Buster Wilkins SR 55 ck# 2938 McKee Funeral Home SR 55 ck# 9803 Julie Jackson Shawnee Road ck# 762 Lawrence Sherman Shawnee Road ck# 2543 Beth Harman Shawnee Road ck# 2241 Hardy Co. Parks & Rec SR 55 ck# Mutual Protective Ins SR 259 ck# Capon Valley Bank 17558 SR 55 Ck# 30000410 Charles Kohne SR 55 ck#489 Charles Kohne SR 55 ck#489 A Corner Mart SR 55 cash \ Orlando Hoover, Jr. 16641 SR 55 ck # cc MathiadBaker VES 17940 SR 55 ck# 2342 Loudoun Heights 17485 SR 55 Cash Loudoun Heights 17485 SR 55 cash Eugene Keedy, Jr. Shawnee Road ck#6860 Donald Evans Old Baker Road ck#2164 Donald Evans Old Baker Road ck#2164 Donald Evans Old Baker Road ck#2164 HCBOE High School ck#41886 HCBOE Early Middle School ck#41886 EA. Hawse Health Cen SR 55 ck#43729 E.A.Hawse Housing Inc 17987 SR 55 c k#2580 Design & Building Con. 14 Old Baker Rd - 5 taps not paid 30 Columbia Boulevard (304) 624.41 08 PO. Box 1532 Fax: 624.7831 Clarksburg, W 26301 [email protected] www.thrashereng.com CIVIL ENVIRONMENTAL CONSULTING FIELD SERVICES

December 28,2009

Re: Hardy County Public Service District Revised Phase I Baker Contract #1 Proposed Water Treatment Plant Contract #2 Proposed Baker Area Water Distribution System Contract #4 Proposed Marvin Chapel Water Line Extension Contract #5 Proposed Parker Hollow 151,000 Gallon and Marvin Chapel 56,000 Gallon Water Storage Tanks Thrasher Engineering Project #IO-285 Contract #I, #2 and #5 USEDA Project #Ol-79-73008 Contract #4 USDA-RUS andARC

To Whom It May Concern:

The Hardy County Public Service District has applied for and received the following permits for the above referenced project:

West Virginia Culture and History Division of Natural Resources (Wildlife Resources Section) United States Department of the Interior (Fish and Wildlife Service) US Army Corp of Engineers Public Lands WVDEP NPDES Discharge Permit (Backwash Tank - Pemit #WVG64013 1) WVDEP NPDES Erosion and Sediment Control Permit (Permit #WVR103805) Hardy County Home Aeration Unit (Permit #WVG55 1428) WVDEP Ground Water Protect Plan (Permit #WVG64013 1)

The Hardy County Public Service District has applied for but not yet received the following permits for the above referenced project:

West Virginia Bureau of Public Health (Approval Pending the Completion of the Pilot Project)

West Virginia Division of Highways Hardy County PSD December 28,2009 Page Two

If you any additional information please do not hesitate to call me. 7paSincerely,

Clay . Ri ey, P.E. Project Manager

R:\SecyWardy County 10-285UettersLetterfor PSC Submittal stating that all permits have been applied for or received (12-28-09) doc August 19,2004 CULTURE AND HISTORY

Mr. William Ratcliffe Tliraslier Engineering NonhGate Business Park COPY 300 Association Drive Charleston, WV 253 1 1

RE: Hardy County PSD TEI project #lo-285, (70-115) FR#: 04-246-HY-6

Dear Mr, Ratcliffe:

We have reviewed the Revised Phase 1 Cultural Resource Report for the above referenced project. As required by Section I06 of the National Historic Preservation Act, as amended, and its implemenring regulations, 36 CFR 800: “Protection of Historic and Cultural Properties,” we submit our comments.

Thank you for submitting the requested corrections for the Phase 2 Cultural Resource Report for the Baker Mathias Water Line Extension project in Hardy County. We look forward to rcccivirtg the cd containing the revised report with figures, a copy of the Isolated Find form for the Arkansay reducing station site, a copy of the West Virginia Cemetery Survey form completed for the lnskcep Cemetery, and project mapping. The submitted report satisfactorily addresses our concerns regarding the presence of Culhiral resources within the project area, Four known archaeological sites (46HY58,46HY60a46HY90, and 46HY9 I) located within the project area have been avoided by linc relocation. One isolated find, a piece of whiteware, was recovered at the Ar1wm.s reducing station site arid was determined not eligible for inclusion in the National Register of Hisroric Places. Therefoto, we reiterate our previous finding stated in our letter dated July 15,2004, we have determined that no known archaeological sites listed on or eligible for inclusion in the National Register of Historic Places will bc affected by this project.

We appreciate the opportunity to be of service. if you have any questions regarding our comments or the Section LOB process, please contact Carolyn Kender, Archaeologist, in the Historic Preservation Ofice at (3Q4)558-0240.

Archaeologisr for Review and Compliance CC: Gloria Gozdzik, Ph.D - Horizon Research Consulcants, Inc.

tL:cmk

THE Cl..JI,TURAL CENTER e 1900 KANAWHA BOULEVARD, EAST CHARLESTON. WEST VIRGINIA 25305-O3OO TELEPHONE 304-558-0220 * FAX 304-558-2779 TDP 304.558-3562 TOTQL P.08 February 23,2004

Mr. Clay P. Riley Thrasher Engineering Northgate Business Park 300 Association Drive Charleston, WV 253 1 1

RE: County Route 5 Waterline Extension Hardy County PSD - Job # 10-240 FR#: 00-754-HY-2

Dear Mr. Riley:

We have reviewed the above mentioned project to determine its effects to cultural resources. As required by Section 106 of the National Historic Preservation Act of 1966, as amended, and its implementing regulations, 3 6 CFR 800: “Protection of Historic Properties,” we submit our comments.

Architectural Resources: Thank you for providing the additional information requested. Although a windshield survey was requested for the area surrounding the proposed water storage tank, new information indicates that the tank will be between 19 and 24 feet in height. The placement of the tank is to be in a heavily forested area. In addition, the tank will be painted green in an effort to camouflage the structure. The photographs provided indicate that this project will have No Effect to historic resources. No further consultation regarding architectural resources is necessary.

We appreciate the opportunity to be of service. gyou have questions regarding our comments or the Sectioyyd process, please call Jennifer Murdock, Structural Historian at (304) 558-0240.

Deputy State Historic Preservation Officer

SMP:jwm

THE CULTURAL CENTER 1900 KANAWHA BOULEVARD, EAST CHARLESTON, WEST VIRGINIA 25305*0300 TELEPHONE 304-558-0220 FAX 304-558-2779 TDD 304-558-3562 EEOIAA EMPLOYER DlVlSlON OF NATURAL RESQURCES Wildllfe Resources Section Operations Center P.O. Box 67 Elkins, West Virginia 26241-3235 Bob Wise Telephone (304) 6374245 Ed Hamrick Governor Fax (304) 6379250 Director

December 29,2003

i -- Mr, William RatcWe <\ Thrasher Engineering, Inc. NorthGate Business Park 300 Association Drive . Charleston, WV 253 11

Dear Mr. Ratclif€e:

1 .’ We have reviewed our files for information on rare, threatened and speciks and wetlands for the area of the proposed water line extension project for the Hardy ; County Public Service District, (TEI Project #70-115)

The Mathias Shale Barren occurs on the north side of County Route 12 beginning at its junction With State Route 259. This particular shale barren provides habitat for two meplants: Kates Mountain clover (Tntoolium vipginicum) and mountain pimpernel (Taenidia montana). To avoid impacts to this area it may be necessary to run the waterline on the south side of CR 12. If you are mterested m a site visit to this area please contact Mr. Kieran O’Malley of the WVDNRs Romney office (304-822-3551).

Additionally, wood turtles (Glyptmp insculpta) are found throughout this area They hibernate under water and may be found on land &om spring through fall. Their habitat ranges fkomrheadows to woodlands, but they are always found near water. It is unlikely this project Will negatively impact the wood turtle, but care should be taken when working near water and at any stream crossings. ...- Enclosed please find an invoice. Thank you for your inquiry2 and should you have any questions please feel &ee to call upon us.

Enviromental Resources Specialist Wildlife Diversity Program enclosure r.,, . \' i

h '., January 27,2004

Mr. William M. Ratcliffe Environmental Scientist Thrasher Engineering, Inc. Northgate Business Park 300 Association Drive Charleston, West Virginia 253 11

Re: Hardy County PSD Water Line Extension, Thrasher &@neering Project #70-1 I5 Dear Mr. Ratcliffe:

This responds to your information request of 19 December 2003 regarding the potential impacts of a proposed project on wetlands and federally listed endangered and threatened species and species of concern. The Hardy County PSD proposes to install new water lines in Hardy County, West Virginia. These comments are. provided pursuant to the Endangered Species Act (87 Stat. 884, as amended; 16 U.S.C. 1531'et seq.).

Federally listed species that could occur in the project area are the endangered Virginia big-eared bat, Cornorhinus townsendii virginianus, the threatened Bald Eagle, Hdiaeetus leucocephalus, and the endangered Indian bat, Mvotis sodalis.

The project area is located within six miles of two separate caves occupied by Virginia big-eared bats. The U.S. Fish and Wildlife Service (Service) believes that any use of the project area by the bat is mainly for foraging. The preferred foraging habitat of the Virginia big-eared bat is a mosaic of different age forest habitats and openings. Except for night foraging, Virginia big- eared bats hibernate and reproduce totally in cave environments. Rare instances of day roosting have been documented by researchers and were always associated with cliffs, rock outcrops .or abandoned buildings. The Service believes that the proposed project will not adversely affect the Virginia big-eared bat if rock outcrops and cliff habitats are not disturbed.

In West Virginia Bald Eagles nest, and raise young, during the months of December through - . June annually. While Bald Eagles have the ability to become acclimated to a certain amount of human activity, any new and sudden activity during nesting season produces stress on the adult Mr. William M.Watcliffe 2 t January 27, ’2004

birds. Stressed eagles have been known to abandon the nest, whkk coulld affect reproductive success, or hinder the survival of the young. Protection of the nest site during this period is therefore imperative. An active Bald Eagle nest is located near the town of Lost River, WV, and appears to be close to the proposed project area.

The Service typically recommends a buffer area of “no new activity” around the nest from December 15 until July 1 (the nesting period). The buffer area should be a radius of 750 feet (the equivalence of 40 acres) around the nest. Please contact this office for coordinating the location limits of the buffer area. E it is imperative for the project to come closer than 750 feet from the nest, the Service recommends a seasonal restriction from December 15 until July 1 for this stretch of line.

! -,

< ’’ The Indiana bat may OCCLU in the project area and could conceivably be adversely affected by the project proposal. The Indiana bat may use the project area for foraging and roosting between April 1 and November 15. Indiana bat summer foraging habitats are generally defined as - riparian, bottomland, or upland forest, and old fields or pastures with scattered trees. Roosting/matemity habitat consists primarily of live or dead hardwood tree species such as shagbark hickory, Cawa ovata, which have exfoliating bark that provides space for bats to roost between the bark and the bole of the tree. Tree cavities, crevices, splits or hollow portions of tree boles and limbs also provide roost sites.

The Service has determined the number of acres of suitable foraging and roosting habitat on the 1 West Virginia landscape available to each Indiana bat, versus the total acreage of forest. On that r- basis, we have determined that small projects, outside of a five-mile radius of a hibernaculum and a two-mile radius of a capture site, affecting 17 acres or less of suitable forested habitat, will I have a very small chance of resulting in direct or indirect take of the species, and therefore these

I1I effects are considered discountable.

If less that 17 acres of potential habitat for that species will be impacted, then no further consultation under the Endangered Species Act (87 Stat. 884, as amended; 16 U.S.C. 153 1 et seq.) is required regarding the Indiana bat. Should project plans change, or if additional information on the Indiana bat becomes available, this determination may be reconsidered, If more than 17 acres of forested habitat will be impacted, further coordination with this ofice will be required.

Defrnitive determinations of the presence of waters of the United States, including wetlands, in the project area and the need for permits, if any, are made by the U.S. Army Corps of Engineers. They may be contacted at: Pittsburgh District, Regulatory Branch, William S. Moorhead Federal Building, 1000 Liberty Avenue, Pittsburgh, Pennsylvania 18222-4188, telephone (4 12) 395- 7152. ~f.wriiiarn M. Ratcliffe 3 January 27,2004 If you have any questions regarding this letter, please contact MroMonte Matthews of my stafi at (304)636-6586, or at the letterhead address.

r: F THE ARMY BKTSBURGH DISTRICT, CORPS OF ENGINEERS WILLIAM 8. MOORHEAD FEDERAL BUILDING 1000 UBERTY AVENUE PITTSBURGH, PA 152224186 March 11, 2004 REPLY TO I. ATENTION OF Operations and Readiness Division Regulatory Branch .. . 200302 093 r.

1. Mr. William Ratcliffe Thrasher Engineering , Inc e Northgate Business Park I. 300 Association Drive Charleston, West Virginia 25311 i:

Dear Mr. Ratcliffe: Reference is made to your recent request for a jurisdictional determination on an substantial potable water system improvement project that will service over 500 customers near the Villages of Lost City, Mathias, Baker and Needrnore in ~ hardy County, West Virginia as part of the Hardy County PSD waterline extension project. Based on a review of the information provided and the overall size of the project, it has been detenrnined that jurisdictional wetlands and streams do exist within your proposed project area. Fills or earth disturbances within these streams and/or wetlands would require authorization f,rom this office under Section 404 of the Clem Water Act.

I Even though there appears to be many miles of 6" and 8" waterline, based on your plans sent to our office and location within the watershed, it appears these stream and wetland crossings may be eligible for authorization under a Nationwide Permit 12 for utility fine activities. In planning final design and future development every effort should be made to avoid and minimize wetland and stream impacts to the fullest extent practicable. If encroachments and crossings are planned within these stream and wetland areas they should be accurately delineated and this office again contacted to determine permit requirements, Development of the upland areas would not require authorization from this office.

.. -2-

We will continue to work with you so that you can have a successful project while protecting these stream and wetland resources.development plans in order to protect the aquatic resources, If you have any questions, please contact Fred r !. Pozzuto, Chief, Permit Enforcement and Surveillance Section at (412) 395-7275.

..... 'i i

DIVISIONOF NATURALRESOURCES Capitol Complex, Buildlng 3, Room 643 1900 Kanawha Boulevard, East Charleston WV 25305-0661 Telephone (304) 5583225 Fax (304) 558-3680 Joe Manchln HI TDD (304) 558-1439 Frank Jerioro Go vefnor TDD 1-800-354-6087 Director June 3,2008

Division of Natural Resources LICENSE AND RIGHT OF ENTRY

Re: P-08-llil6-864

Hardy County Public Service District do Thrasher Engineering, Inc. Phil Simmons PO Box 2532 Clarksburg, WV 26307- Dear Mr. Simmons:

The Division of Natural Resources hereby grants to you for a term of 25 years, from the date hereof, a License and Right of Entry to construct, replace, cover, repair, operate, maintain, use and remove six-inch (6"),eight-inch (8')and ten-inch (10") ductile iron potable water pipelines at nineteen separate locations along Parker Hollow Run, Baker Run, an unnamed tributary of Baker Run, three (3) unnamed tributaries of the Lost River, Sperry's Run, four (4) unnamed tribuaries of Sperry's Run and Slate Rock Run, near Moorefield in Hardy County, West Virginia, as shown located and highlighted in red on the map attached hereto as Exhibit A.

This License and Right of Entry is subject to the following terms and conditions:

1, No in stream work during the fish-spawning season (April l-June 30)

2. The pipeline must be buried at least three-feet (3').

3. Any stream bed disturbance should be restricted to the immediate area. In stream use of equipment should be kept to a minimum,

4. All shore areas disturbed by this operation must be reshaped, seeded and mulched immediately upon completion of work. The prompt establishment of vegetative cover will reduce future damage from high water levels.

5. Green concrete must not be put in the stream (highly toxic to aquatic life)

6. Amount of stream side vegetation disturbed should be kept to a minimum, Hardy County Public Service District Page 2 June 3,2008

7. Best management practices should be followed; measures such as hay bales must be used to reduce downstream siltation.

8. Any plastic pipeline under four-inch (4”) in diameter shall be encased in a metal conduit.

9. The State’s issuance of this Right-of-Entry does not provide for the applicant to work outside the requested boundaries nor does the State assume any liability for the applicant’sllandowner’s construction activities. By accepting this Right-of- Entry, the applicantllandowner assumes liability for any/all damages caused by this activity to both upstream and downstream landowners.

10. Work should be completed as quickly as possible during low flows in designated work areas only.

11. A 404 Permit may be required from The U.S. Army Corps of Engineers. You may contact them at (304-399-57101412-395-7 170, Guidelines of Best Management Practices for Sediment and Erosion Control as outlined by the Section of Water Resources, Division of Environmental Protection must be followed. Copies of those guidelines are available from the Section of Water Resources, Telephone No. (304) 926-0495. The issuance of this License and Right of Entry by the Division of Natural Resources does not preclude the necessity to obtain a permit from the Corps of Engineers or any other state or federal permits which may be required by law, nor does this License and Right of Entry negate the need to comply with the West Virginia Water Pollution Control Act and/or the State Environmental Quality Board’s administrative regulations, applicant is also responsible for determining if the proposed activity is located within an identified flood plain and it is the applicant’s responsibility for contacting the local governmental agencyin charge of that program and obtaining a flood plain development permit for it. This License and Right of Entry does not grant any rights or privileges, or permission to enter upon or to cross the property of any other person, nor is permission granted to remove any material that lies upon the property of any other persons. Work should be completed in as brief a period as possible and within one year from the date of this letter, In the event you fail or refuse to comply with any of the terms or conditions herein, this License and Right of Entry will be canceled and considered null and void and the Division will reject further applications.

There is no fee for this Right of Entry. Sincerely,

heT. Scarberry, Supervisv Office of Land and Streams JTS:ah pc: DNR Fish Biologist Mr. Mike Zeto, Environmental Enforcement DNR Conservation Officers I Permit Details

PERMITTEE HARDY CNTY PSD DEP OFFICE OWR PERMIT ID IWVG640131 I ISSUE/REISSUE DATE 10911 9/08 1 EXPIRATION DATE I06/28/12

~ IFACILITY NAME I Hardy County PSD I DESCRIPTION

~ ~~ ~~~~ No. of CUSTOMERS DISTURBED ACRES SLUDGE TONNAGE

~ ~~ I DESIGN FLOW(MGD) AVERAGE FLOW(MGD) 0.006000 MAJOR FACILITY N EXTENSION DATE

ACTIVE YES/NO Y OPENlCLOSED 0 STATUS New

ICounty: Hardy IQuad: NEEDMORE

INSPECTABLE UNIT CODE TYPE ENTIRE Entire Default 00 1 Outlet

INSPECTABLE UNIT CODE: 00 1 Show Map MAGISTERIAL DIST: NEAREST POST OFFICE: LAT ITUDE: LONGITUDE: CO UNTY : Hardy INSPECTABLE UNIT CODE: ENTIRE Show Map MAGISTERIAL DIST: I NEAREST POST OFFICE: I I LATITUDE : !

1ittp://~~ww2.wvdeu.or~/WebAuu/deu/seal-cl.I/Permits/OWR/OWR Permit delails.cfin? __ 12/2 I /2009 Permit Details Page 2 of 2 c.

ILONGITUDE: I I I COUNTY: I Hardv I IUSWRC WATERSHED: I CacaDon River I SCS WATERSHED: Lost River I I ~ I USW RC WATERS HED : Cacapon River SCS WATERSHED: Lost River

httu:llwww2.wvdeu.orrr/WebAuulder)lsearcl~lPeriiiits/O WWOWR Permit detai Is.cfiii?. . . 1212 1 I2009 west Virginia department of environmental protection

~ ~~ ~ Division of Water and Waste Management Joe Manchin III, Governor 601 57th Street SE Randy C. Huffman, Cabiiet Secretary Charleston, West Virginia 25304-2345 Phone: 304-9260495 www.wvdep.org Fax: 304-926-0496 September 19,2008

LOGAN MOYERS HARDY CNTY PSD PO BOX 900 MOOREFIELD, WV 26836

CERTIFIED RETURN RECEIPT REQUESTED Re: WVNPDES Pennit No. WVOI 15754 General Permit Registration No. WVG64013 1 Hardy County PSD, Hardy County Dear Permittee:

The Division of Water and Waste Management has reviewed your Permit ApplicatiodGeneral Permit Site Registration Application Form for your water treatment plant. Your registration form has been assigned the above registration number. Based upon the information you submitted on this application form, you are now authorized to operate under WVNPDES General Water Pollution Control Permit No. WV0115754, issued on June 29,2007. Copies of the General WVMPDES Water Pollution Control Pennit No. WV0115754 and Fact Sheet were sent with your registration package, or are enclosed. You should carefully read the contents of the permit and become familiar with all requirements needed to remain in compliance with the permit.

Although you should be aware of all the terns and conditions of this permit, we wish to advise you of the following important requirements:

1. You are subject to the requirements of Limitation Category 1-A of the General Permit.

2. In accordance with Section B.6. of the General Permit, you are required to have a groundwater protection plan (GPP) approved by this Agency. 3. Facilities permitted to discharge pollutants to the waters of the State under Chapter 22, Article 1 1 of the West Virginia Code are required to test their emuent in order to verify permit compliance. This testing is the responsibility of the permittee and these test results are to be submitted to this ofice on the Discharge Monitoring Report (DMR)form which is enclosed. Failure to submit the required DMRs is a violation of the permit and can lead to enforcement actions being taken by this agency for noncompliance. It is suggested that several copies of the enclosed DMR be made for your future use, as this office does not supply permittees with DMR forms. Your first DMR is due on or before January 20,2009.

Promoting a healthy environment. LOGAN MOYERS Page 2 September 19,2008

4. inis uenerai remit expires on June LL),LUIL. u you wisn 10 connnue a regularea acriviry aner the expiration date of this permit, provisions for coverage will be made during the public notice process for any new General Permit to be issued at that time.

Finally, note that copies of all future correspondence regarding the permit including copies of DMRs must be sent to the following addresses:

Department of Environmental Protection Department of Environmental Protection Division of Water and Waste Management Environmental Enforcement Permitting Section HC 63 Box 2545 601 57th Street SE Romney, WV 26757 Charleston, WV 25304-2345

The validity of this General Permit Registration is contingent upon payment of the applicable annual permit fee, BS required by Chapter 22, Article 11, Section 10 of the Code of West Virginia.

If you have any questions, please contact Thomas Sowers of this Division at (304) 926-0495.

Director LAM:ts Enclosures . '

OllW (ML-1) RF-B Reported AlwninUm,Total~e NIA NIA NIA 0.0712 0.143 NIA mSn itquarter Grab Permit Limits YearRaund AW Mmdhlv -w 00980 (ML-1) RF-B Reported Iron, To$l Rmm NIA N/A NIA 1.2 2.5 NIA mgll ilquarter Grab Pmit Limits Year ~ound Am kbnrmy Me* Dpbl 00951 (ML-1) RF-B Reported Fluoride, Total N/A NIA N/A 4.2 6.13 msn l/quarter Grab Permit Limits YWRmd LdordMy HBL DDDI 11123 (ML-1) RF-8 Reported TOW Recov. Mmganew N/A NIA NIA 3 4.38 NIA msn Ifquarter Pemit Limits Year Rormd Avo bdonmtl -0Oav IOreb General Permit Registration No.: WVG640 13 1

NOTICE TO PERMlTTEES

The 1999 regular session ofthe West Virginia legislature revised the Water Pollution Control Act, Chapter 22, Article 1 1, Section 10 of the Code of West Virginia relating to fees associated with permits. This section of the Code requires all holders of a State water pollution control permit or a national pollutant discharge elimination system permit to be assessed an annual permit fee, based upon rules promulgated by the Secretary of the Department of Environmental htection. The Secretary has promulgated a final rule in accordance with the code revision to this effect and these rules were effective May 4,2000. The rules establish an annual permit fee based upon the relative potential to degrade the waters of the State which, in most instances,relate to volume of discharge. However, for sewage facilities, the annual permit fee is based upon the number of customers served by the facility. You may contact the Secretary of State's Office, State Capitol Building, Charleston, WV 25305, to obtain a copy of the rules. The reference is Title 47, Legislative Rules, Department of Environmental Protection, Division of Water Resources, Series 26 Water Pollution Control Permit Fee Schedules.

Based upon the volume of discharge for which your facility is currently permitted, the number of customers served by your facility or for the category you fall within, pursuant to Section 7 of Title 47, Series 26, your annual permit &e is $1000.00. This fee is due no later than the anniversary date of permit issuance in each year of the term of the permit or in the case of coverage under a general permit, the fee is due no later than the anniversary date of your coverage under the general permit. You will be invoiced by this agency at the appropriate time for tbe fee. Failure to submit the annual fee within ninety(90) days of the due date will render your permit void upon the date you are mailed a certified written notice to that effect. STATE OF WEST VIRGINIA DEPARTMENT OF ENVIRONMENTAL PROTECTION DIVISION OF WATER RESOURCES PUBLIC NOTICE

WEST VIRGINIA DEPARTMENT OF ENVIRONMENTAL PROTECI'ION'S, PUBLIC INFORMATION OFFICE, 601 57TH STREET SE, CHARLESTON, WEST VIRGINIA 25304-2345 TELEPHONE: (304) 926- 0440.

Application for coverage under the general West Virginia National Pollutant Discharge Elimination System Water Pollution Control Permit No. WVOl15754 Public Notice No.: GP-67-08 Public Notice Date: August 13,2008

Paper: The Moorejield Examiner The following has applied for coverage under ?he General WV/NPDES Water Pollution Control Permit No. WVO115754 (Water Treatment Plant Wastewater Disposal Systems) for this hcility or activity: AppL No.: WVG640131

Applicant: HARDY C'NTY PSD PO BOX 900 MOOREFIELD, WV 26836

Location: BAKER, HARDY COUNTY Latitude: 39:02:40 Longitude: 78:47:50

Receiving Stream: Camp Branch Rn/Baker Rn/Lost Rv/Cacapon Rv/Potomac Rv Activity: To acquire, construct, install, operate and maintain a disposal system for the direct discharge of lreated (via sedimentationand de-chlorination) industrial wastes. The facility will be discharging approximately 6,000 GPD of treated backwash wastewater to Baker Run, via Outlet 001. The facility is proposed to be covered under Limitation Category 1-A of the General Permit. Business conducted: Potable Water Production

Implementation: N/A

On the basis of review of the application the "Water Pollution Control Act (Chapter 22, Article 1 1-8(a))," and the "West Virginia Legislative Rules," the State of West Virginia will act on the above application. Any interested person may submit written comments on the site registration permit application and may request a public hearing by addressing such to the Director of the Division of Water Resources within 30 days of the date of the public notice. Such comments or requests should be addressed to: Director, Division of Water Resources, DEP ATTN: Lon Derrick, Permitting Section 601 57th Street SE Charleston, WV 25304-2345 The public comment period begins Augwt 13.20 08 and ends SeDtember 12.200!l.

Comments received within this period will be considered prior to acting on the permit application. Correspondence should include the name, address and the telephone number of the writer and a concise statement of the nature of the issues raised. The Director shall hold a public hearing whenever a fmdmg is made, on the basis of requests, that there is a siguificant degree of public interest on issues relevant to the site registration permit application and this fbcilit$s coverage under the General Permit. Interested persons may contact the Public Information Oftice to obtain Merinformation. The application may be inspected, by appointment, at the Division of Water Resources Public Information Office, at 601 57th Street SE,Charleston, WV, between 8:OO am. and 4:OO p.m. on business days. Copies of the application and the General Pdtand Fact Sheet may be obtained hmthe Division at a nominal cost. Individuals requiring TelecommunicationDevice (TDD)may contact our agency by calling 1-800-422-5700. Calls must be made 8:30 am. to 3:30 pm. Monday through Friday. Permit Details Page 1 of 1

=AGILITY NAME IPhase 1 Baker WTP and Distribution Svstem I I IESCRIPTION INIA Yo. of CUSTOMERS I 3ISTURBED ACRES I 16.91 SLUDGE TONNAGE I DESIGN FLOW(MGD) I AVERAGE FLOW(MGD) I MAJOR FACILITY IN EXTENSION DATE I

ACTIVE YEWNO IY OPEN/CLOSED STATUS INew

~ ~~ ~~ County: Hardy IQuad: WARDENSVILLE s INSPECTABLE UNIT CODE TYPE ENTIRE Entire Default

~~ ~ ~ INSPECTABLE UNIT CODE: ENTIRE Show Map MAGISTERIAL DIST: NEAREST POST OFFICE: LATlTUD E : 39" 2'56.0000" LONGITUDE: 78" 33'1 1.OOOO" COUNTY: Hardy USWRC WATERSHED: Cacapon River SCS WATERSHED: Cacapon River

http://www2 .wvdep .osg/WebApp/ -dep/searclflesnii ts/OWWO WR-Permit-detai 1 s.cfiii?. . . 1212 1I2009 Nay 4,2009 LOcIANMOneRs HARDYCINTYPSD PO BOX 900 MOOFWIELD,WV 26836

...... i..:..

Promoting a healthy environment. . i 13 west Virginia department of environmental protection

Division of Water and Waste Management Joe Manchin 111, Governor 601 57th Street SE Randy C. Huffma Chariestun, WV 25304-2345 Telephone Number: (304) 926-0495 Fax Number: (304) 926-0497

May 30,2008

Mr. Phil Simmons Thrasher Engineering PO Box 1532 Clarksburg, WV 26301 Re: Wasteload Allocation 574 Hardy County PSD

Dear Mr. Phil Simmons:

We have reviewed your wasteload allocation request for a 500 gallons per day (gpd) discharge. We are able to grant your request and have enclosed the completed wasteload allocation.

This wasteload allocation is valid for a period of six (6) months and may be extended for one (1) six (6)month period if you can demonstrate permit application preparation has begun. If a completed WV/NPDES permit application is submitted to the Bureau of Public Health and/or this agency, the wasteload allocation is valid during the term of the permit.

This wasteload allocation proposes to discharge pollutants to a tributary of the Potomac River basin; therefore, in accordance with West Virginia's Tributary Strategy, the nitrogen and phosphorous permit limitations shall be based on concentrations of 5.0 mg/l and 0.5 mdl respectively. Total nitrogen and total phosphorous limitations shall be implemented on an Annual Total Load basis as of the effective date of the permit. This Annual Total Load is the sum of all total monthly mass results. The monthly mass results shall be based on the total monthly flows (actual flows).

Promot i ng a hea It hy en v i ro nm e n t . Mr. Phil Simmons Page 2 May 29,2008

If you have any questions concerning of this matter, please do not hesitate to contact me at (304) 926-0499 extension 1015 or Julie Wandling at (304) 926-0499 extension 1065 or Doug Casto at Relay 71 1, extension TTY (304) 926-0489.

Sincerely,

David €3. Phillips Permitting Section

DBP:dac

CC: File

Enclosures

Promoting a healthy environment. *. . MUNICIPAL/PRIVATE SEWAGE TREATMENT WASTELOAD ALLOCATION ci"eP IMPORTANT: READ CAREFULLY INSTRUCTIONS AND CONDITIONS ON OTHER SIDE PART A. TO BE COMPLETED BY APPLICANT DATE: May 22, 2008 Have any prior applications been made for this facility? -Yes XNo. If yes, give dates of prior applications I. Owner of the Wastewater system: Hardy County Public Service District Owners Address: P.O. Box 900, 2094 220 South, Moorefield, WV 26836 Form submitted by; Phil Simmons, Thrasher Engineering, inc -Phone Number: (304) 624-4108 Email Address: [email protected] - Mailing address: P.O. Box 1532, Clarksburg, WV 26302-1532 11. Treatment facilities physical location: New Water Treatment Plant for Hardy County Public Service District List wastewater treatment facilities within one mile: None IIi. Attach a statement identifying the source of your right-to-enter in and upon the real property adjacent to the receiving stream to install or construct the proposed point source. (This can include recorded deeds, leases, options, real estate contracts and easements.) IV. Discharge point location. (The discharge point refers to the exact locatiori of the pipe outlet from the treatment facility.) (a) Name of the county were discharge point IS located Hardy (b) Name of U S G S 7 5 minute topographic map Need= TOPOGRAPHIC MAP OR COPY OF THE TOPOGRAPHIC MAP SHOWING FACILITY LOCATION, EFFLUENT PIPELINE, AND DISCHARGE POINT MUST nc nTTACMFn (See item3. instru tions.) (c) irfirnd!ak iecsiving stream is +!k!cez which is a tributary of .. ' Lost iver Rod (See itern 4. instructions) (d) Does the immediate receiving stream have a year round flow'? Lues-No. (e) The discharge point on the immediate receiving stream IS 1.o miles (to the nearest ten!h) from the mouth of the immediate receiving stream. (f) Within five miles down stream from the discharge point, does the receiving stream have a domestic water supply intake? Yes XNo;an impoundment? Yes No. - - ~ (g) Latitude and longitude of discharge point lo the nearest second.

Latitude 39 O 02 * 41 " Longitude 78 O 47 49 'I (h) If area of walershed above the discharge point to the immediate stream is less than 200 square miles, give measured drainage area from the U.S.G.S. topographic map: &. 7 square miles. (See item 5,instructions.) V. Facility Description (a) Name and purpose of facility (municipality, mobile home park. motel, etc.) Water Treatment Plant Rest Room (b) Will this treatment plant handle sewage from townslentities other than the owner listed above? -Yes -x NO. ifyT list all other townsienlities. (c) Will this facility be used for industrial wastes? Yes X-No. If yes, give the percent of flow from industrial users: I

(d) Is this a proposal to construct a new treatment facility or to expand an existing treatment fadlity? &Yes -No. If yes, it Will be necessary to fill out the Additional Information for MunicipallPrivate Sewage Treatment Wasteload Allocation Form. This form can be downloaded from our websiie at htto:~~~v.wvdep.oraiDocs/380addwlaform.pdf. (e) Design Criteria Existing Design (See item 6, instructions.) Number of persons 6-8 Flow Der Derson aalldavioerson 18%< aalidavloersogallonsiday ybd Total waste water flow galloris/day VI. (a) Distance to the nearest public sewer 15 miles or 'feet. (b) Street or other location of nearest public sewer: N/A

(c) Give reason why the public sewer is not being used; (See item V, conditions.) Not available in the area, Distance and Cost

Mail complered form to: Division of Water and Waste Management, Permitting Section 601 57'h Street SE,Charleston, WV 25304-2345 t I PART 6. To be completed by itle Divlsion of Water and Waste Management, WV Depar'ment of Environmental Protection I I u/-I// Allowable Waste Load (30 Day Average) I Y I STATE OF WEST VIRGINIA DEPARTMENT OF HEALTH AND HUMAN RESOURCES BUREAU FOR PUBLIC HEALTH OFFICE OF ENVIRONMENTAL HEALTH S Joe Manchin I11 Walker Governor July 10, 2008 Y

Phil Simmons Thrasher Engineering, Inc. P. 0. Box 1532 Clarksburg, West Virginia 2630 1

RE: Hardy County Public Service District Water System Upgrade & Extension Hardy County

Dear Mi-. Simmons:

Reference is made to the recent application for an extension to and upgrade of the Hardy County Public Service District's water system. A number of our concerns were provided to you in an e-mail and a facsimile on June 17,2008,which you responded to in a letter dated July 1,2008. Your responses have been reviewed and the following has been determined:

1. The proposal to do a "post construction pilot study" or what appears to be an installed equipment performance evaluation study is unacceptable and will not be approved. The federal Safe Drinking Water Act requires a pilot study whenever a membrane filter (alternative filtration technology) is proposed to be used for a public water system treating surface waters. It is clear from the USEPA guidance documents that the pilot study is to be pre-construction. Please provide us with a uroposed on-site membrane Pilot testing Protocol. A"typical" membrane pilot testing protocol is enclosed.

The pilot plant study requirement could be avoided if conventional treatment were proposed. Conventional treatment would be 2 or 3 stage flocculation, four (4) hour sedimentation and rapid rate sand filtration. Two (2) hour sedimentation (with or without settlers) would not be approved without justification such as at least a years worth of raw water data.

2. There was very little raw water data provided with this application. We are aware that the reservoir has only recently been constructed and that it is currently filling up with water. However, the Public Water System Design Standards, under Section 5.2.b.Quality: Requires a sanitary survey and study of the factors, both natural and man made that may affect the quality of the surface water. As a minimum, the raw water shall be sampled for

Capitol and Washington Streets 1 Davis Square, Suite 200 Charleston, West Virginia 25301-1798 Telephone: 304-558-2981 Hardy County PSD July 10, 2008 Page Two

the coliform group and the samples shall not exceed five thousand (5000) per one hundred (100) milliliters as a monthly average value (MPN or MF count), nor exceed this number in more than twenty per cent (20%) of the samples examined during any month, nor exceed twenty thousand (20,000) per one (100) milliliters in more than five per cent (5%) of the samples. one (1) set of raw water samples for the contaminants (not submitted) listed on the enclosed Public Drinking Water-List of Required Contaminant Analysis will be required.

In light of the above, three (3) sets of the application and plans are being returned unamroved. One (1) set was sent to our Kearneysville District Office for review. Please do not re-submit until the above required raw water data has been collected; and the required pilot plant study has been completed. Should you have any questions, I may be contacted at (304) 558-6760 or by e-mail at [email protected].

Very truly yours,

Infrastructure and Capacity Development Environmental Engineering Division

W SH:cls

Enclosure

cc: Hardy County PSD Brad Reed, P.E., OEHS-KearneysvilleDistrict Ofice U.S. DEPARTMENT OF COMMERCE Economic Development Administration The Curtis Center Suite 140 South Independence Square West Philadelphia, Pennsylvania 19106-3323

In reply refer to: Investment No. 0 1-79-73008 CT 2 3 2009 Mr. Matthew G. Gapp, Chair Hardy County Public Service District 223 North Main Street Moorefield, West Virginia 26836

Dear Mr. Gapp:

I am pleased to inform you that the Department of Commerce's Economic Development Administration (EDA) has approved your application for a $3,748,000 American Recovery and Reinvestment Act of 2009 (ARRA) EDA investment to implement the construction of a 350 GPM surface water treatment plant to treat water stored in Lost River Dam Site 10. The Hardy County PSD will also construct 20,000 - linear feet of 10 inch water distribution line and a 157,000 gallon water storage tank to serve the Baker Industnal and Business Park. Enclosed are three signed copies of the ' Financial As si stanc e Award.

This project is being fimded under the $150 million supplemental appropriation that EDA received under the American Recovery and Reinvestment Act of 2009 to create jobs and boost development m parts of the country hit hard by the recession In addition, the award is intended to provide a one-time injection of funds for the purposes of stimulating the American economy. Therefore, any funding of ths project will be - -. subject to the -,---requirements ______of-- federal-- -- - law-- - - aqd the pmvisi-ons ofthe-&eric_an Recovery - ~-~ ---..- and Reinvestment Act of 2009, Pub. L. No. 111:5, 123 STAT._1_15,.inchdingsection - . . . -- 1553 of the Recovery Act, Protecting State and Local Government and Contractor Whistleblowers (123 STAT. 297).

Your agreement to the terms and conditions of the award should be indicated by the signature of your pnncipal official on each of the signed copies of the Financial Assistance Award. Two of the executed copies should be returned to Willie C. Taylor, Regional Director, Phil'adelpha Regional Office, the Curtis Center, Suite 140 'South, 601 Walnut Street, Philadelphia, Pennsylvania 19106. If not signed and returned within 30 days of receipt, EDA may declare the Award null and void,

Please do not make any commitments in reliance on ths award until you have carefully reviewed and accepted the terms and candit!ws Any commitments entered into prior to obtaining the approval of EDA in accorcl2nce with its regulations and requirements will be ::: 1%PUT own risk.

PHILADELPHIA REGIONAL OFFICE 2

EDA’s mission is to lead the federal economic development agenda by promoting innovation and competitiveness, preparing American regions for growth and success in the worldwide economy. EDA implements this mission by making strategic investments in the nation’s most economically distressed communities that encourage private sector collaboration and creation of hrgher-skill, higher wage jobs. EDA investments are results driven, embracing the principles of technological innovation, entrepreneurship and regional development.

I share your expectations regarding the impact of this investment and look forward to worlung with you to meet the economic development needs of your community. Please direct any questions about this Award to Mr. Ron Horton of my staff at 215-597-1 082.

Sincerely,

Willie C. Taylor Regional Director

Enclosures

...... ~ --......

, QI

Infrostructure tk Jobs Development Caundl

Gov. Joe Manchin, Ill July 14,2009 Chnirmnn

knncdr Low. lr. Logan Moyers, General Manager Public Membcr Hardy County Public Service District P.O. Box 900 Dwight Calhoun Piiblic klenibcr Moorefield, W 26836 David 'Bonts" h41fornns Re: Hardy County Public Senrice District Public Mcrnkr 2008W-840 Binding Commitment Ron Juslirr Public h4mihcr Dear Mr. Moyers: Anficln K Chzs!nut. P.E. Esccurivc Director The West Virginia Mastructure and Jobs Development Council (L&structure Council), at its July 8, 2009 meeting, voted to offer the Hardy Borbnro J. Poulq County Public Service District (District) a binding commitment for a $1,641,250 '- ,4drninistrative Sccretay Infrastructure Fund IO~(~YO,40 yrs) (Loan). Once the $1,500,000 US Economic Development Administration grant is secured to provide matdling funds for a US EDA grant, you will need to contact the Infrastructure Councii to set up a bid schedule and to comply with other program requirements. The Loan will be subject to the tern set forth on Schedule A attached hereto and incorporated herein by reference. The final Loan amount will be established after the District has received acceptable bids for the Project.

Please contact Angeia K. Chestnut at 304-558-4607 if you have any questions.

Sincerely,

" Kcnncth Lowe, Jr. KL:bjp

Attachment

cc: Bob DeCrease, P.E., BPH (wlo enclosure) (via e-mail) Clay P. Riley, P.E., Thrasher Engineering, Lnc. (+io e-mail) Region WI-Planning & Development Council (via e-rnail) Logan Moym, Genera1 Manager July 14, 2009 Page 2 of 3

NOTE: This letter is sent in triplicate, Please acknowledge receipt and immediately copies to the Infrastructure Council.

I-Iardy County Public Service District

By:

Its:

Date,:

180 Association DriJce Charleston. !AT 253 I I hone (304)558-4607 * Fiu; (30.1) 558-4609 www ~vvinfrastrucwmc o in Logan Moycn, General Manger July 14,2009 Page 3 of 3

WEST VTIRGIHU MFRGSTRUCTURE Sr JOBS DEVELOPMENT COUNCIL

Hardy County Public Service District Water Project 2008W-840

SCHEDULE A

A. Approximate Amount: $1,64 1,350 Lorn

B. Loan: $1,64 1,250

1. Maturity Date: 40 years from date of closing.

2. Interest Rate: 0%

3. Loan Advancement Date@): Monthly, upon receipt of proper requisition.

4. Debt Service Commencement: The first quarter following completion of construction, which date must be identified prior to closing.

NOTICE: The terms set forth above are subject to change following the receipt of construction bids.

C. Special Conditions: The funding package may be reduced prior to closing if an additional gmt source is procured.

D. Other Funding: RUS grant $4365,000 US EDA grant 1,500,000 ARC grant 500,000

E. Total Project Cost: $8,206,250

F. Proposed User Rates: Approximately $46.33 / 3000 gallons

180 Associntion Drive Charleston, '?,V 253 11 Phone (304) 558-3607 * Fax (304) 5584609 \ww.\v vinfnstnicturs.com United Stat- Dopertmsnt of Agriculture Rural Devolopmont West Vlrginla State oflice

January 27,2010

Matthew Gapp, Chairman Hardy County Public Service District P.O.Box 209 Moorefield, WV 26836

Re: Amendment No. 3 to Letter of Conditions

Dear Mr. Gapp: This letter amends the previous letter of conditions dated September 21,2004, and Amendments No. 1 and No. 2 dated February 15,2005 and October 9,2008, respectively, and further establishes conditions which mu$ be understood and agreed to by the PSD before further consideration may be given to PSD’s application for assistance fiom USDA Rural Development.

The grants will be administered by the State and Area staff of USDA, Rural Development. Any changes in project cost, source of fimds, scope of services, or any other significant changes in the project or applicant must be reported to and approved by USDA, Rural Development by written amendment to this letter. Any changes not approved by Rural Development shall be cause for discontinuing processing of the application.

The project that was funded in connection with the original Letter of Conditions and Amendment No. 1 to the Letter of Conditions was to provide potable water sewice to planned extension areas in Hardy County, West Virginia, commonly referred to as Baker, Mathias, Marvin Chapel, and South Fork. Based on the Project Budget attached to Amendment No. 1 the Letter of Conditions, the total planned funding fot this project was $13,602,500. The RD portion of this planned funding was a loan of $5,600,000 and two grants totaling $4,565,000. The RD loan and grants together equal $10,165,000. These funds were obligated in connection the original Letters of Conditions, and with Amendment No. 1 to the Letter of Conditions. RD has been waiting for the PSD to meet the conditions necessary to bid and close the project.

On June 14,2005 Hardy County PSD requested permission to obtain interim ing fkom a local bank to construct the South Fork portion of the proposed water project. In a response letter &om RD on June 27,2005, it was noted that the project had not progressed to the point that the PSD could be authorized to obtain interim financing according to the conditions of RUS Instruction 1780.39(d). However, the PSD was granted permission to incur costs prior to loan and grant closing. One of the conditions noted in this response letter is that, “RD authorization to pay such obligations is on the condition that it assumes no responsibility for any obligations incurred by the PSD and that the PSD must subsequently meet any and all closing requirements.”

In the course of bidding out the South Fork Extension, the PSD did not meet RD requirements for open and fiee competition in the way Contract 2 was bid. The PSD agreed to pay all project costs associated with Contract 2 out of their own funds as shown on the project budget fium Thrasher Engineering that was submitted prior to construction. The PSD borrowed the money hma local bank and contracted for the construction of the South Fork Extension. The PSD did not pay an amount equivalent to the cost for Contract 2. Therefore, $44,179.78 of the construction paid with the interim financing cannot be refinanced with RD funds.

In January 2007, the project engineer and the PSD informed RD that some of the planned non-RD funds necessary for the Baker, Mathias, Marvin Chapel, and South Fork Project could not be obtained. Due to this fact, the full original project was scaled back, which meant a reduction in potential customers.

On June 4,2007, Hardy County PSD staff met with RD staff in Morgantown to discuss the possibility splitting the RD loan for the project into two loans so that part of the loan hdscould be closed to refinance the eligible costs associated with the South Fork Extension and loan funds could be made available to pay for design and other professional services associated with the rest of the planned project that is not built yet. The PSD provided a written request for this change dated June 1 1, 2007.

RD split the existing funds into two separate projects as requested.

Project 1 will be referred to as the South Fork Water Proiect and Professional Service Fees. *Project 2 will be referred to as the Baker. Marvin ChaDel Water Proiect.

The purpose of this letter is to fuaher define the conditions relating to Project 2. Project 1 -Funding was an RD loan in the amount of $2,366,000 that was split fiom the initial loan obligation of $5,60O,OOO. In addition, the Hardy County PSD will contribute $44,179.78 to pay for the remaining cost of the South Fork Contract 2 that is not eligible for RD refinancing. The total project cost is $2,410,179.78. (The PSD previously paid $104,305.22 towards the cost of the South Fork Extension Project. If this amount is counted, the total project cost would be $2,5 14,485).

Project 2 -Funding is proposed to be the remaining RD grant amount of $4,565,000, a U.S. Economic Development Administrative grant of $3,748,000 and a West Virginia Infiastructure and Job Development Council loan of $1,641,250 for a total project cost of $9,954,250. The remaining $3,234,000 RD loan funds will be deobligated prior to the project’s loan and grant closing. 2 The Amendment to the Letter of Conditions dated October 9,2008 proposed a US. Economic Development Administration grant of $1,5OO,OOO and an ARC grant in the amount of $500,0OO. The PSD had filed an extension with the U.S. EDA. During the June 3,2009 PSD Board Meeting, it was noted that the EDA indicated there is not a time extension available and the PSD was offered a termination agreement and advised that they could reapply for a grant. The PSD opted to terminate the agreement and reapply for additional funds through the US.EDA. In September 2009, the PSD received notice that they were awarded a grant in the amount of $3,748,OoO from the US EDA. By terminating the original grant agreement with the US EDA, the PSD lost the ARC grant in the amount of $500,000 but was able to obtain additional EDA grant dollars. During this process, with consent fiom RD, the PSD was able to remove the RD loan and substitute it with a zero percent interest loan from West Virginia Infrastructure and Development Council.

Subject to the requirements noted herein, all of the conditions of the September 21,2004 Letter of Conditions and Amendment No. 1 to the Letter of Conditions dated February 15,2005 and Amendment No. 2 to the Letter of Conditions dated October 9,2008, remain in effect, and must be satisfied prior to grant closing. Based on the Rule 42, the PSD must be able to provide verification of 1,908 bona fide users prior to authorization to bid. Evidence of this will consist of 62 signed user agreements and a signed certification &om you that identifies and attests to the number of users actually connected to and using the PSD’s existing water system, at the time you request authorization to advertise the proposed project for construction bids.

Extra copies of this letter are being provided for use by your engineer, attorney, bond counsel and accountant. Enclosed is the following: Attachment No. 1- Project 2: Baker, Marvin Chapel Water Project- Project Construction Budget (All copies).

The conditions referred to above are as follows:

1, Public Senice Commission (PSC) Approval - The PSD must obtain PSC approval for the proposed financing and for the user rates that must be implemented in association with the loan identified in this Amendment to the Letter of Conditions.

2. Income Available - The PSD must maintain a rate come to meet the e, debt service and resew

3. At a properly called meeting, the PSD must adopt fonns and minutes from the meeting documenting the adoption must be provided.

a. Form RD 1942-46 “Letter of Intent to Meet Conditionsy’

set forth in this letter are not met within six (6) months from the date hereof, RD reserves the right to discontinue processing of the application. In 3 the event the project has not advanced to the point of loan closing within the six- month period and it is determined the PSD still wishes to proceed, it will be necessary that the proposed budget be reviewed again in detail. If, during that review, it is determined the budget is no longer current and/or adequate, RD reserves the right to require that it be revised or replaced.

We believe the information herein clearly sets forth the action which must be taken; however, if you have questions, please do not hesitate to contact me.

Sincerely,

BOBBY LEWIS State Director

Attachments cc: Craig Burns, Area Director Griffith and Associates AITN: Anna-MarieLantz ATTN: Michael D, Griffith, CPA Area Specialist 950 Little Coal River Road Martinsburg, WV Alum Creek, WV 25003

Thrasher Engineering, Inc. Steptoe and Johnson, PLLC Attn: Clay Riley, P.E. ATTN: John C. Stump, Esquire P.O.Box 1532 P.O.Box 1588 Clarksburg, WV 26301 Charleston, WV 25326

Thomas Michael, Esquire WV Infiwtructure and Jobs Attorney at Law Development Council P.O.Box 250 A'ITN: Angela Chestnut Lost Creek, WV 26385 Executive Director Lost Creek, WV 26385 180 Association Drive Charleston, WV 2531 1 Region 8 Attn: Terry Lively P.O. Box 8498 Airport Road Petemburg, WV 26847 U.S.Economic Development Administration AITN: Willie Taylor, Regional Director The Curtis Center, Suite 140 South 601 Walnut Street Philadelphia, PA 19106

4 30 Columbla Boulevard (304) 624.4108 RO, Box 1532 Fax: 624.7831 Clarksburg, WV 26301 [email protected] www.thrasherengcom CIVIL ENVIRONMENTAL CONSULTING FIELD SERVICES

January 13,20 10

Mr. Logan Moyers, Manager Hardy County Public Service District P.O. Box 900 Moorefield, WV 26836

Re: Hardy County Public Service District Phase I Baker Contract #I Proposed Water Treatment Plant Contract #2 Proposed Baker Area Water Distribution System Contract #4 Proposed Marvin Chapel Water Line Extension Contract #5 Proposed Parker Hollow 151,000 Gallon and Marvin Chapel 56,000 Gallon Water Storage Tanks Thrasher Engineering Project #101-010-0285 Contract #I, #2 and #5 USEDA Project #Ol-79-73008 Contract #4 USDA-RUS and ARC

Dear Logan:

One of the requirements for the Public Service Commission submittal is the maximum service elevations on this project. This will be item #17 of the PSC checklist. The following are the elevations as required.

Maximum Service Elevation from the Parker Hollow Tank (1672.00) Maximum Service Elevation from the Marvin Chapel Tank (1588.00) If you any additional information please do not hesitate to call me.

Sincerely, THRASHER ENGINEERING, INC.

PHIL SIMMONS Engineering Technician

R\SecyWardy County 10-28S\letters\Letter to Logan Moyers for PSC Submittal stating Maximum Service Elevations for Parker Hollow and Marvin Chapel Tanks (1-13-10) .doc Form No. 14 1 1 1 PUBLIC SERVICE COMMISSION ! i OF WEST VIRGINIA

I CHARLESTON i Entered by the Public Service Commission of West Virginia, in the City of Charleston on the i 1 day of January, 2010. 1 F CASE NO. I I I I NAME OF APPLICANT: HARDY COUNTY PUBLIC SERVICE DISTRICT j Application ofthe Hardy County Public Service District for a Certificate of Convenience and I Necessity to construct potable water distribution systems in Hardy County, West Virginia, in the Marvin Chapel area near Wardensville, and in Baker and surrounding areas.

NOTICE OF FILING 1 1 I i WHEREAS, on January ,20 10 the Hardy County Public Service District filed an application, duly verified, for a Certificate to construct certain potable water distribution systems in Hardy County, West Virginia. The application is on file with and available for public inspection at the Public Service Commission, 201 Brooks Street, in Charleston, West Virginia.

WHEREAS, the utility anticipates charging the following post project water rates for its customers:

APPLICABILITY Applicable within the entire territory served

AVAILABILITY Available for general domestic, commercial and industrial water service.

RATES (customers with metered water supplY)

MINIMUM CHARGE No minimum bill will be rendered for less than the following:

5/8 inch meter $39.75 per month 3/4 inch meter $59.65 per month 1 inch meter $99.40 per month 1 1/4 inchmeter $145.10 per month 1 1/2 inch meter $198.75 per month 2 inch meter $3 18.00 per month 3 inch meter $596.25 per month 4 inch meter $993.75 per month 6 inch meter $1,987.50 per month 8 inch meter $3,180.00 per month 10 inch meter $4,571.25 per month

RETURNED CHECK CHARGE A service charge of $25.00 will be imposed upon any customer whose check for payment of charges is returned by the bank for any reason.

Town of Moorefield Utility Excise Tax Rate 2% Surcharge Rate 2%

WATER DISCONNECT-RECONNECT-ADMINISTRATIVE FEES Whenever water service has been disconnected for any reason, a disconnection fee of $25.00 shall be charged; or in the event the delinquent water bill is collected in the field, an administrative fee of $25.00 shall be charged. Whenever water service which has been previously disconnected for any reason is reconnected, a reconnection fee of $25 .OO shall be charged. TAP FEE The following charges are to be made whenever the utility installs a new tap to serve an applicant.

A tap fee of $400.00 will be charged to all customers who apply for service outside of a certificate proceeding before the Commission for each new tap to the service.

SECURTTY DEPOSIT In accordance with West Virginia Law and Public Service Commission Rules and Regulations.

PRIVATE FIRE PROTECTION SERVl CE( * Where connections, hydrants, sprinklers, etc., on private property arc maintained by customer:

2 inch service line with hydrants, sprinklers, and/or connections $85.77 annually 3 inch service line with hydrants, sprinklers, andor connections $195.02 annually 4 inch service line with hydrants, sprinklers, and/or connections $342.39 annually 6 inch service line with hydrants, sprinklers, and/or connections $867.89 annually 8 inch service line with hydrants, sprinklers, and/or connections $1,423.24 annually 10 inch service line with hydrants, sprinklers, and/or connections $2,524.99 annually 12 inch service line with hydrants, sprinklers, and/or connections $3,538.19 annually

* Same as WVAWC

The Hardy County Public Service District does not have any resale customers.

FOR THE COMMISSION

Executive Secretary Mr. William Ratcliffe Thrasher Engineering Nonhgate Business Park 300 As~ciationDrive Charletitod:kV 253 11 COPY a: County Route 5 Waterline Extension H& COW@PSD - Job # 10-240 FR#: 00-754-HY-1 .. Dear Mr. RatelEe:

' We have reviewed tha above mentioned project to determine its effects to edtural nsources. As wired by Section 106 of the National Historic Presetvation Act of 1966, as amended, and irs implementing regulations, 36 CFR 800: "Protection of Historic Prop~tties,"'we submit our comments. @-chitecrJlral Resour= We lack information in our survny files regarding the coraxndty of Marvin Chapel and assooiared properties. It appears that he community lie$ within the Area of Potential Effect (ME)of dds projecL The APE is that area which is dtacrly impacted by the project and the area that could Wtah secondary effects from the pmject. We am primarily concemed with those properties near the proposed water tower at the eastern end of the project area Please indicate if any properties fall withia the 1mile radius of tke water tower. If so, please mnduct a windshield survey of the APE and complete WV Historic Property Inventory (HPI) fomfor all resources 50 years and older. Submit the results of your survey M our office for comment. Please also indude informdon as to the proposed height of the new strucftrre. Upon receipt of this information we will complete our review of arc~tectdmources. Archaeological Rao.wcq: No known archaeological sites listed on IX eiigiblb for kIusian in the National Register of Kistoric Places will be aflccted by this project Tbis detanniaation is bawd upon eydden of the project area aceording to the Criteria of Si@icance, and cmntstata inventory infirmation. In addition to this, it is our understanding that all construction will be confined to road right-of-ways and lherafore will be located in ground that as already been distwbd Therefore, do fimher consulmtior~with the SHFO is required regarding archaeotogk-al mwes within this project am. However, should buried archaeological materials be encountered, construction shall cease and out office conmcrd immediately.

.I qWE CULTURAL- 1900 KANAWHA mu*, w\sT cluIusTON,WESTVIRGW 25305-0300 -HONE 304-558-0220 * FAX 304-558-2779 TDD 304-558-3562 EEO/AA EMPLOYER 100 179sec0202 1O.wpd PUBLIC SERVICE COMMISSION OF WEST VIRGINIA CHARLESTON

Entered by the PUBLIC SERVICE COMMISSION OF WEST VIRGINIA, in the City of Charleston, on the 2ndday of February 20 10.

CASE NO. 10-0 179-PWD-CN

HARDY COUNTY PUBLIC SERVICE DISTRICT Application of the Hardy County Public Service District for a Certificate of Convenience and Necessity to construct potable water distribution systems in Hardy County, West Virginia, in the Marvin Chapel area near Wardensville, and in Baker and surrounding areas.

NOTICE OF FILING

On February 2, 2010 the Hardy County Public Service District (“District”) filed an application, duly verified, for a Certificate to construct certain potable water distribution systems in Hardy County, West Virginia. The application is on file with and available for public inspection at the Public Service Commission, 201 Brooks Street, in Charleston, West Virginia.

The District estimates that construction will cost approximately $9,954,250.00. It is proposed that the construction will be financed as follows: West Virginia Infrastructure and Jobs Development Council loan in the amount of $1,641,250.00 (withO% interest, 40 year term); United States Department of Agriculture, Rural Development Services, grant in the amount of $4,565,000.00; and a United States Economic Development Administration Grant in the amount of $3,748,000,00.

WHEREAS, the utility anticipates charging the following post project water rates for its customers:

APPLICABILITY Applicable within the entire territory served

AVAILABILITY

’ Available for general domestic, commercial and industrial water service.

RATES (customers with metered water supply)

First 3,000 gallons used per month $13.25 per M gallons

~ ~~ Public Service Commission of West Virginia Charleston Next 7,000 gallons used per month $9.60 per M gallons Next 40,000 gallons used per month $3.97 per M gallons All over 50,000 gallons used per month $3.70 per M gallons

MINIMUM CHARGE No minimum bill will be rendered for less than the following:

5/8 inch meter $39.75 per month 3/4 inch meter $59.65 per month 1 inch meter $99.40 per month 1 1/4 inchmeter $145.10 per month 1 1/2 inchmeter $198.75 per month 2 inchmeter $3 18.00 per month 3 inch meter $596.25 per month 4 inchmeter $993.75 per month 6 inchmeter $1,987.50 per month 8 inch meter $3,180.00 per month 10 inch meter $4,571 -25 per month

RETURNED CHECK CHARGE A service charge of $25.00 will be imposed upon any customer whose check for payment of charges is returned by the bank for any reason.

MUNICIPAL EXCISE TAX SURCHARGE The municipalities listed below, having imposed public utility tax computed on the basis of two percent of the revenues from water sales by the District water within the corporate limits of such municipalities, shall be billed a "surcharge'' to the customers receiving service within said corporate limits.

The water utility is required to collect the utility tax pursuant to West Virginia Code $8- 13- 5a. Customers receiving water service within the corporate limits of the specified municipality shall pay a surcharge based on the following surcharge rates:

Town of Moorefield Utility Excise Tax Rate 2% Surcharge Rate 2%

Public Service Commission of West Virginia Charleston 2 previously disconnected for any reason is reconnected, a reconnection fee of $25.00 shall be charged.

TAP FEE The following charges are to be made whenever the utility installs a new tap to serve an applicant.

A tap fee of $400.00 will be charged to all customers who apply for service outside of a certificate proceeding before the Commission for each new tap to the service.

SECURITY DEPOSIT In accordance with West Virginia Law and Public Service Commission Rules and Regulations.

EFT. CREDIT CARD, ACH AND DROP BOX PAYMENTS A service charge will be imposed on EFT, Credit Card, ACH or Drop Box payments. The amount shall be equal to the actual charges to the utility from the financial institution for processing payment.

-PRIVATE FIRE PROTECTION SERVICE! * 1 Where connections, hydrants, sprinklers, etc., on private property are maintained by customer:

2 inch service line with hydrants, sprinklers, and/or connections $85.77 annually 3 inch service line with hydrants, sprinklers, and/or connections $195.02 annually 4 inch service line with hydrants, sprinklers, and/or connections $342.39 annually 6 inch service line with hydrants, sprinklers, and/or connections $867.89 annually 8 inch service line with hydrants, sprinklers, and/or connections $1,423 -24annually 10 inch service line with hydrants, sprinklers, and/or connections $2,524.99 annually 12 inch service line with hydrants, sprinklers, and/or connections $3,538.19 annually

Public Service Commission of West Virgima Charleston 3 * Same as WVAWC

The District does not have any resale customers.

Pursuant to W. Va. Code 824-2- 11, IT IS ORDERED that the Hardy County Public Service District give notice of the filing of the application, by publishing a copy of this order once in a qualified newspaper as provided in W. Va. Code 859-3-1 et seq, published and of general circulation in Hardy County, making due return to this Commission of proper certification of publication immediately after publication. Anyone desiring to protest or intervene should file a written protest or notice of intervention within 30 days following the date of this publication unless otherwise modified by Commission order. Failure to timely protest or intervene can affect your right to protest aspects of this certificate case, including any associated rate increases, or to participate in future proceedings. All protests or requests to intervene should briefly state the reason for the protest or intervention. Requests to intervene must comply with the Commission’s rules on intervention set forth in the Commission’s Rules of Practice and Procedure. All protests and interventions should be addressed to Sandra Squire, Executive Secretary, P. 0.Box 8 12, Charleston, West Virginia 25323.

IT IS FURTHER ORDERED that if there is no substantial protest to the Application received within the thirty day period, the Commission may waive formal hearing and grant the application based on the evidence submitted with the application and its review thereof.

S Sij an 100 179s.wpd

Public Service Commission of West Virginia Charleston 4