SETTLEMENT AGREEMENT RECITALS
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1 SETTLEMENT AGREEMENT THIS SETTLEMENT AGREEMENT ("Agreement") is entered into this~ day of March, 2016, by and among the Prince William Board of County Supervisors ("PWC") and Virginia Electric and Power Company d/b/a Dominion Virginia Power ("Dominion") (each a "Party" and collectively the "Parties"). RECITALS A. Reissuance ofvpdes Permit. On January 14, 2016, the State Water Control Board approved the tnodlfi.cation ofvirginia Pollutant Discharge Elimination System ("VPDES") PennitNo. () (the "Permit") for Dominion's Possum Point Power Station in Prince William C::1;mnty, Virginia. The Virginia Department of Environmental Quality ("DEQ") served the permit by electronic mail on January 19, B. Appeal ofvpdes Permit. On February 11, 2016, PWC mailed a Notice of Appeal to DEQ. The Notice of Appeal was timely received by DEQ. C. Dominion's Objectives. Dominion states as follows solely for purposes of background information, and without establishing or implying the agreement of the Parties as to the following statements. Dominion is committed to being one of the first electric utilities in the nation to close all of its inactive coal ash impoundments in accordance with the federal coal combustion residuals (CCR) rule and applicable state requirements. EPA and DEQ have both adopted rules to address potential environmental concerns assocfated with those impot1ndmellts. The Permit authorizes Dominion to remove and discharge the water from the.impoundments at the Possum Point Power Station. This is the first step in the closure process. Domillion is committed to treating all of this water to protect hurnan hcalthand the aquatic life and natural environment in Quantico Creek and the Potomac River. Dominion has designed and plans to install a treatment system capable of achieving substantially lower pollutant concentrations than the limits in the Permit, which DEQ issued in accordance with applicable federal and state regulations. Dominion is committed to optimizing the performance ofthe treatment system as set forth in this Agreement. D. PWC's Objectives. PWC states as follows solely for purposes of background irifotmation, and without establishing or implying the agreement of the Parties as to the tqllt)wing stiltemeilts. PWC's goal is to avoid negative impacts on the health, safety, and general W.clfate ofthe Coqnty and its citizens, along with aquatic life and the natural environment, including, but not limited to, in Quantico Creek and the Potomac River. As such, PWC seeks to ensure that the discharges from the impoundments at the Possum Point Power Station are treated tp reduce pollutant co11centra:tions to the maximum extent practicable, that independent third parlies are used for sampling and analysis, a11d that the Parties engage in an enhanced coordination process fot the fotthcomingsolid waste permit proceedings associated with the closure project to ensure protection ofthe citizens, along with aquatic life and natural environment. 1
2 NOW, THEREFORE, in furtherance of the mutual interests of the Parties, the Parties enter into this Agreement to memorialize their intent as to the following enumerated items: AGREEMENT 1. Amended Conceptual Engineering Report. Dominion shall submit, within three (3) days oft!ie c){ecutioh ofthis. Agreement, the amended Conceptual Engineering Report (''Amended CER") attached asexl)ibit A to DEQ for review and approval. Dominion shall providepwc with a copy ofthepmfessional Engineer's certification that is submitted to DEQ, as des ribcd in Section l.2: of the Amended CER. Dominion shall also provide an opportunity fcit, and corisfder in good faith, comment frgm PWC regarding the separate concept engineering report for the Final Configuration Phase, as desctibed in Section of the Amerided. GER. The Amended CER establishe$ two levels oftreatrrient designed to meet orexceed the technology and water quality based effluent limitatipns established in the Penn it as follows. a. Guaranteed Minimum Treatment. Pttrsuant to the terms of the Amended CER, Dominion sha!.1 treat all. coal.ash wastewaters using thetreatment pr(;)cesses described there.in, up ((I btitnot including Enhm1ced Trtiatmen:t (as defined ins\1bparagraph l.b below). This commitment shall applyfoall coal ash wastewaters at all times, even when wastewaters otherwise meet the technology and water quality based effluent limitations established in the Permit. b. Enhanced Treatment Triggers. Pursuant to the terms ofthe Amended CER, ifwastewaters provided Guaranteed Minimum Treatment exceed any ofthe pollutant concentration Enhanced Treatment Triggers presented below, as determined by inline process sampling, then the wastewaters shall be routed through Enhanced Treatment prior to being discharged. Coal Ash Wastewater Parameter Enhanced Treatment Trigger (ug/l) Arsenic 100 Selenium 5.0 Lead 7.4 Copper 6.0 Antimony 640 Thal!ium 0.47 For purposes ofthe il1lh1e process sampling, samples will be collected every one (1) hour at an in-process point im1rtediately pdor to the enhanced treatment module(s), and analytical results will be returned within approximately one (1) hour after collection. This sampling is in addition to the effluent compliance sampling required by the VPDES Permit. 2. Independent Monitoring. Dominion shall retain independent, qualified parties to collect and analyze the VPDES Permit-required effluent compliance samples throughout the closure project. IfPWC has concerns with these independent, qualified parties, Dominion shall 2
3 work collaboratively with PWC to address the concerns. Dominion shall provide an opportunity for, and consider in good faith, comment from PWC regarding the relevant. Stai1dard Opt:ratinit Procedures (SOPs) and Quality Assurance/Quality Q;mtrol (QNQC) protocols for monitoring and sampling. Dominion shall post its effluent co1rtplfonce sampling resµlts 011 awebsite readily accessible to Prince William County residents on a weekly basis. 3. Solid Waste Units Closure PtocCss. Closure ofthe impc1undments at Possum Point Power ~tation wilt also involve a separate solid waste permit proceeding under the Virginia Solid Waste Mai1agcmentReg1,1lations. o.ciminion shall provide County staff with opportunities for briefings, review of reports and data, and comment on relevant permit materials pursuant to a coordination plan and schedule that is mutually acceptable to the Parties. Dominion shall consider in good faith all PWC comments. 4. Resolution ofappeal. PWC will not file a Petition for Appeal relating to the Permit, and will withdraw its Notice of Appeal. 5. Costs and Expenses. Dominion shall reimburse PWC up to a maximum of $50, to defray the costs ofany documented out-of-pocket expenses incurred by the County for the work of its third party environmental C(!nsultants (Cl!rrently ARM Group, Inc., with its subcontractor, Resource Internatiortal, Ltd.) or their suceessor(s), related to technical review and analysis as part ofthe Permit and forthcoming solid waste permit proceeding. Dominion shall pay such costs within 30 days of each invoice submitted by PWC. Except as noted above, the Parties will bear their own costs and expenses associated with the appeal of the Permit and compliance with this Agreement. 6. Jo.int Communications Regarding this Agreement. The Parties will work in good faith to develdpjointsta:temertts to the medil.l regarding this Agreement and resolution ofthe appeal of the Permit. Nothing prohibits either part:)i from. making statements consistent with this Agreement. 7. Dispute Resolution. Any dispute relating in any way to this Agreement shall be brought in the Circuit CO,Urt for the County of Prince William, Virginia (the "Circuit Court"). The Parties consent to the jurisdiction ofthe Circuit Court. TO THE FULLEST EXTENT PERMITTED BY LAW, THE PARTIES WAIVE ALL RIGHTS TO A TRIAL BY JURY ln ANY ACTION RELATED TO THIS AGREEMENT AND COVENANT THAT THEY WILL NOT REQUEST A TRIAL BY JURY ln ANY ACTION RELATED TO THIS AGREEMENT. Relief sought in such action is limited to injunctive relief. 8. Miscellaneous Provisions. a. Governing Law. This Agreement shall be governed in all aspects by the laws of the Commonwealth ofvirginia. b. No Third Party Beneficiaries. This Agreement is solely for the Parties hereto and their successors and assignees and shall not confer any rights or benefits on any other person or entity. 3
4 c. Interpretation. This Agreement shall be construed in accordance with and g:ove111e<l for au purposes by the laws ofth Ciimmonwealth of Virginia. This Agreement shall be inttirpretedas ifit were tnutually drafted.by the Parties. The captions and headings to the varj9us paragraphs and subparag:raphs ol' this Agreement are for informational purposes only and shall.11ot alter th substance of the forms and conditions of this Agreement. d. Integration. This Agreement contains all commitments and agreements of the Parties as of the date hereof with respect to the subject matter ofthis Agreement, and no verbal or written commitments other than this Agreement shall have any force or effect regarding the subject matter hereof. e. Counterparts. This Agreentent may be extieuted i11.two onnore counterparts, each of which shall be deemed an original, but all ofwhich together shall constitute one and the same instrument. The Parties further agree that ll facsimile, scanned, or electr(lnic signature may substitute for and have the same legal effect as an origihal sig:natm c, and that any copy of this executed Agreement made by photocopy, facsintile, or scan111:1 shall be considered an original. f. Power and Authority of the Parties. Each of the Parties represents and warrants that the undersigned has full power and authority to enter into and perform this Agreement on its behalf. [REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK SIGNATURES ON FOLLOWING PAGE] 4
5 IN WITNESS WHEREOF, the Parties have caused this Agreement to be signed in their names and on their behalf by the undersigned. VIRGINIA ELECTRIC AND POWER COMPANY D!B/A/ DOMINION VIRGINIA POWER Q ''\ Name; :_h\\m~~ Pame1a F. Faggert \1.Cdtc~\~&- Chief Environmental Officer March 8, 2016 Name: Name: County Attorney March!?';2016 5
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