Minutes - March 25, 2015 Recessed Meeting

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BK 00027 PG SETTLEMENT AND RELEASE AGREEMENT THIS SETTLEMENT AGREEMENT AND RELEASE OF ALL CLAIMS (the "Agreement") is made as of the -31 day of 2015, by and among DUKE ENERGY PROGRESS, INC., a North Carolina corporation ( "DEP"), DUKE ENERGY CAROLINAS, LLC, a North Carolina limited liability company, ( "DEC ") (DEC and DEP collectively referred to as "Duke ") and LEE COUNTY ( "Lee County "), a political subdivision of the State of North Carolina and a body politic and corporate. Lee County and Duke are collectively referred to herein as the "Parties. " RECITALS A. Within the geographic boundaries of Lee County is an abandoned clay mine (commonly known as the Colon Mine Site) located off Brickyard Road, in Sanford, North Carolina (the "Site "). B. Subject to and in accordance with North Carolina and federal law, Duke Energy Business Services, LLC, as agent for and on behalf of DEP and DEC, has contracted with Charah, Inc. ( "Charah ") to transport certain Coal Ash (as hereinafter defined) from DEC and DEP facilities for use as structural fill at the Site. C. Following the public announcement of Duke's plans to beneficially reuse certain Coal Ash as structural fill at the Site, the Lee County Board of Commissioners engaged counsel to explore claims against Duke in connection with its proposed use of the Site and, on January 5, 2015, the Lee County Board of Commissioners passed a resolution opposing coal ash disposal in Lee County, and objecting to Duke's plans to place coal ash at the Site. Lee County has threatened litigation, injunctive claims, and other administrative rights and remedies regarding permitting and use of the Site against Duke and Charah, which would have a detrimental impact on Duke's ability to timely and cost - effectively comply with state and federal law regarding disposition of Coal Ash (as hereinafter defined). The subject of the recitals contained in this paragraph is hereinafter referred to as the "Dispute." D. In Iieu of protracted Iitigation, and without admission of liability or wrongdoing by any ply hereto, the Parties have agreed to fully and finally compromise and resolve th Dispute and any and all matters arising out of or related to the Dispute on the terms and conditions set forth in this Agreement. AGREEMENT NOW, THEREFORE, for and in consideration of the foregoing premises and recitals, the covenants, representations, and warranties contained herein, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, and subject to the terms herein, the Parties agree as follows: Page 1 of 10