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DOCKET NO. D-2006-022-2 DELAWARE RIVER BASIN COMMISSION Teva Pharmaceuticals Groundwater Withdrawal City of Philadelphia, Philadelphia County, Pennsylvania PROCEEDINGS This docket is issued in response to an Application submitted by Teva Pharmaceuticals (Teva) to the Delaware River Basin Commission (DRBC or Commission) on November 2, 2016 for renewal of an allocation of groundwater and review of a groundwater water withdrawal project (Application). The Application was reviewed for continued approval under Section 3.8 of the Delaware River Basin Compact. The Philadelphia City Planning Commission has been notified of pending action on this docket. A public hearing on this project was held by the DRBC on May 17, 2017. A. DESCRIPTION 1. Purpose. The purpose of this docket is to renew the approval of a groundwater withdrawal of up to 5.14 million gallons per month (mgm) from existing Well PW-1 for irrigation purposes on the Teva property. The docket holder purchased the former Island Green Golf Course with the intention to develop the property into a distribution center, the company has suspended the proposed development plans and is currently marketing this property for sale. Teva is not requesting an increase in groundwater withdrawal allocation from that contained in its prior approval. 2. Location. The project well is completed in the Wissahickon Schist Formation and is located in the Pennypack Creek Watershed in the City of Philadelphia, Philadelphia County, Pennsylvania. The Pennypack Creek River near the project site is designated by the Pennsylvania Department of Environmental Protection (PADEP) as supporting Warm Water Fishes (WWF) and Migratory Fishes (MF). Specific location information has been withheld for security reasons. 3. Area Served. The project well supplies water to the Teva property (formerly Island Green Country Club) as outlined on maps entitled Site Location Map and Well Network as submitted with the previous application. For the purpose of defining Area Served, the Application is incorporated herein by reference consistent with conditions contained in the DECISION section of this docket.

2 4. Physical features. a. Design criteria. Well PW-1 is currently not being used as there are currently no operations on the property. The docket holder projects the 10-year average and maximum water demand to be 0.100 million gallons per day (mgd) and 0.166 mgd, respectively. The allocation of 5.146 mgm should be sufficient to meet the future demands of the docket holder s property. In August 2011, Teva purchased the former Island Green Golf Course located in Philadelphia, Pennsylvania. The docket holder intended to develop the property into a distribution center, however in 2012, the company suspended the proposed development plans. Teva is currently marketing the property for sale and having this docket renewal will help sell this property. The property was formerly owned by Transit America, Inc, which received a Pennsylvania Land Recycling and Remediation Standard Act (Act 2) release of liability for ground water and soils from the PADEP in 2000. The release of liability indicated that the ground water was not to be used at the site for potable or agricultural purposes. White Pine Partners, L.P. purchased the property from Transit America, Inc. in 2002. White Pine Partners, L.P. submitted a revised cleanup plan to the PADEP Environmental Cleanup Program in December 2002, which requested modifications to the existing deed notice provisions to allow the withdrawal, treatment, storage and use of ground water for irrigation at the golf course. The PADEP approved the revised cleanup plan under Act 2 on January 16, 2003, and acknowledged that the plan demonstrated that the site will continue to meet a site-specific cleanup standard for groundwater by ensuring that extracted ground water is treated prior to use in irrigation. When the docket holder or new owner of this property puts Well PW-1 back into operation, they must operate the treatment system at the site to meet the PADEP Act 2 Medium Specific Concentrations (MSCs) for residential, used aquifers with total dissolved solids less than 2,500 mg/l. Treated water will be conveyed to an irrigation reservoir via a 4-inch diameter pipeline. The reservoir is equipped with a sensor to stop groundwater pumping when the reservoir is full. An interconnection with the Philadelphia Water Department (PWD) provides potable water to the site. b. Facilities. The existing project well has the following characteristics:

3 WELL NO. DEPTH (FEET) CASED DEPTH/ CASING DIAMETER PUMP CAPACITY (GPM) YEAR DRILLED PW-1 160 43 / 8 120 2001 Well PW-1 is metered. The system is currently not in operation. Once the system begins operations, the groundwater will be treated by passing through four greensand filters for iron, manganese and solids removal. Following the greensand filters, the water flows through carbon adsorption units. Granular activated carbon removes residual PCB and volatile organic compounds present in the water to below Act 2 MSCs. All exposed piping has been labeled or tagged as Non-Potable. The project well is above the 100-year flood elevation. The water system is presently interconnected with the City of Philadelphia Water Department distribution system for potable water supply. c. Other. Wastewater is conveyed to Northeast Philadelphia sewage treatment facility which received approval most recently under Section 3.8 of the Compact by DRBC Docket No. D-1970-052 CP on July 26, 1972. The PADEP issued its most recent NPDES Permit No. PA0026689 on August 15, 2007 for this treatment facility. A renewal application was submitted on February 27, 2012 and is still pending approval. The treatment facility has adequate capacity to receive wastewater from the proposed project. d. Cost. There is no construction cost associated with this project. B. FINDINGS The site is currently not in operation and there are no groundwater withdrawals occurring. Once the site is back in operation the docket holder must inform the Commission of the change in status of the property. This docket approval is contingent on the purpose of the groundwater withdrawals not changing (irrigation), if the purpose of the withdrawals change the docket holder or new owner must submit a renewal application to the Commission (Condition C.II.e.). The project is designed to conform to the requirements of the Water Code and Water Quality Regulations of the DRBC. The DRBC estimates that the project withdrawals, used for the purpose of irrigation, result in a consumptive use of 90 percent of the total water use. The DRBC definition of consumptive use is defined in Article 5.5.1.D of the Administrative Manual Part III Basin Regulations Water Supply Charges.

4 The project does not conflict with the Comprehensive Plan and is designed to prevent substantial adverse impact on the water resources related environment, while sustaining the current and future water uses and development of the water resources of the Basin. C. DECISION I. Effective on the approval date for Docket No. D-2006-022-2 below, Docket No. D-2006-022-1 is terminated and replaced by Docket No. D-2006-022-2. II. The project and appurtenant facilities as described in the Section A Physical features are approved pursuant to Section 3.8 of the Compact, subject to the following conditions: a. Docket approval is subject to all conditions, requirements, and limitations imposed by the PADEP, and such conditions, requirements, and limitations are incorporated herein, unless they are less stringent than the Commission s. The docket holder shall register with and report to the PADEP all surface and groundwater sources described in this docket in accordance with the Pennsylvania Regulations (Title 25 - Environmental Protection, [25 PA. CODE CH. 110], Water Resources Planning) once Well PW-1 goes into operation. b. The well and operational records shall be available at all times for inspection by the DRBC. c. The well shall be operated at all times to comply with the requirements of the Water Code and Water Quality Regulations of the DRBC. d. During any month, the withdrawal from Well PW-1 shall not exceed 5.14 million gallons. The project well shall not be pumped above the maximum instantaneous rate and monthly allocation as indicated below: WELL NO. MAXIMUM INSTANTANEOUS RATE MONTHLY ALLOCATION PW-1 120 5.14 e. The docket approval is contingent on the purpose of the groundwater withdrawals not changing (irrigation), if the purpose of the withdrawals change the docket holder or new owner must submit a renewal application to the Commission. f. The well shall be equipped with readily accessible capped ports and minimum ½ inch inner diameter (ID) drop pipes so that water levels may be measured under all conditions. Existing wells are to be similarly equipped, where possible, with readily accessible ports and ½ inch ID drop pipes as repairs or modifications are made at each existing well.

5 g. The project withdrawals shall be metered with an automatic continuous recording device that measures to within 5 percent of actual flow. An exception to the 5 percent performance standard, but no greater than 10 percent, may be granted if maintenance of the 5 percent performance is not technically feasible or economically practicable. A record of daily withdrawals shall be maintained, and monthly totals shall be reported to the PADEP annually and shall be available at any time to the Commission if requested by the Executive Director. h. Each new water service connection shall include a water meter in accordance with the DRBC s Resolution No. 87-7 (Revised). i. The docket holder shall implement to the satisfaction of the PADEP, the continuous program to encourage water conservation in all types of use within the facilities served by this docket approval. The docket holder will report to the PADEP on the actions taken pursuant to this program and the impact of those actions as requested by the PADEP. j. No water service connections shall be made to newly constructed premises with plumbing fixtures and fittings that do not comply with water conservation performance standards contained in Resolution No. 88-2 (Revision 2). k. The docket holder shall continue to implement its Water Conservation Plan as approved by PADEP, and shall report to the PADEP on actions taken pursuant to this program and the impact of those actions as requested by the PADEP. l. The docket holder shall implement to the satisfaction of the PADEP, a drought or other water supply emergency plan. m. No new water service connections shall be made to premises connected to sewerage systems which are not in compliance with all applicable effluent limits contained in State permits and the Water Quality Regulations of the Commission. n. Nothing herein shall be construed to exempt the docket holder from obtaining all necessary permits and/or approvals from other State, Federal or local government agencies having jurisdiction over this project. o. The docket holder is permitted to provide the water approved in this docket to the areas included in Section A.3. Area Served of this docket. Any expansion beyond those included in Section A.3. Area Served is subject to DRBC review and approval in accordance with Section 3.8 of the Compact. p. The docket holder is responsible for timely submittal to the DRBC of a docket renewal application on the appropriate application form including the appropriate docket application filing fee (see 18 CFR 401.43) at least 6 months in advance of the docket expiration date set forth below. The docket holder will be subject to late filed renewal surcharges in the event of untimely submittal of its renewal application, whether or not DRBC issues a reminder notice in advance of the deadline or the docket holder receives such notice. In the event that a timely and complete application for renewal has been submitted and the DRBC is unable, through no fault of the docket holder, to reissue the docket before the expiration date below, the

6 terms and conditions of the current docket will remain fully effective and enforceable against the docket holder pending the grant or denial of the application for docket approval. q. The docket holder shall be subject to applicable DRBC regulatory program fees, in accordance with duly adopted DRBC resolutions and/or regulations. (see 18 CFR 401.43). r. This approval is transferable by request to the DRBC Executive Director provided that the project purpose and area served approved by the Commission in this docket will not be materially altered because of the change in project ownership. The request shall be submitted on the appropriate form and be accompanied by the appropriate fee (see 18 CFR 401.43). s. The docket holder shall request a name change of the entity to which this approval is issued if the name of the entity to which this approval is issued changes its name. The request for name change shall be submitted on the appropriate form and be accompanied by the appropriate fee (see 18 CFR 401.43). t. The issuance of this docket approval shall not create any private or proprietary rights in the water of the Basin, and the Commission reserves the rights to amend, alter or rescind any actions taken hereunder in order to insure the proper control, use and management of the water resources of the Basin. u. If the monitoring required herein or any other relevant data or information demonstrates that the operation of this project is interfering with or otherwise impairing existing uses of ground or surface water, or if the docket holder receives a complaint from an existing ground or surface water user within the zone of influence of the withdrawal alleging such interference or impairment, the permit holder shall immediately notify the Executive Director, and unless excused by the Executive Director, shall investigate the demonstrated or alleged impacts. For purposes of this condition, notification shall mean either (a) electronic transmittal of written notice to the Executive Director via email (using addresses posted on the DRBC website); or (b) written notice to the Executive Director and a telephone call to the Project Review Section at 609-883-9500, ext. 216. (Oral notification must always be accompanied by immediate written notification directed to the Executive Director.) In addition, the docket holder shall provide written notice to all potentially affected water users of the docket holder's responsibilities under this condition. Any well or surface water supply that is impaired as a result of the docket holder s project withdrawal shall be repaired, replaced or mitigated at the docket holder s expense. The scope of the options to consider for repair, replacement and/or mitigation shall not be limited solely to those that are owned, operated, or controlled by the project sponsor. An investigation report and/or mitigation plan prepared and certified by a licensed professional engineer and/or a licensed professional geologist shall be submitted to the Executive Director as soon as practicable following notice of the demonstrated or alleged impairment consistent with this paragraph. The Executive Director shall make the final determination regarding the scope and sufficiency of the investigation and the extent of any mitigation measures that may be required. Where ground and surface waters are rendered unavailable, unusable, or unsuitable for the pre-existing use, the Executive Director may direct

7 the docket holder to take interim actions to mitigate such impacts, pending completion of the investigative report and any long-term repair, replacement or mitigation. v. The Executive Director may modify or suspend this approval or any condition thereof, or require mitigating measures pending additional review, if in the Executive Director's judgment such modification or suspension is required to protect the water resources of the Basin. w. Any person who objects to a docket decision by the Commission may request a hearing in accordance with Article 6 of the Rules of Practice and Procedure. In accordance with Section 15.1(p) of the Delaware River Basin Compact, cases and controversies arising under the Compact are reviewable in the United States district courts. BY THE COMMISSION APPROVAL DATE: June 14, 2017 EXPIRATION DATE: June 14, 2027