20081473 Ver 2_MB Bank Prospectus Review_20080926

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Michael F. Easley, Governor
William G. Ross Jr., Secretary
North Carolina Department of Environment and Natural Resources
Coleen H. Sullins, Director
Division of Water Quality
September 26, 2008
DWQ Project # 08-1473
Jones, Wayne and Johnsrton Counties
Mr. Thomas Rinker
EBX Neuse I, LLC
10055 Red Run Boulevard, Suite 130
Owings Mills, MD 21117-5822
Re: Comments on Draft Mitigation Banking Instrument (MBI) and Prospectus
EBX Neuse Riparian Buffer Umbrella Mitigation Bank
Dear. Mr. Rinker:
The Division of Water Quality (DWQ) has reviewed the above-referenced documents submitted on your
behalf by Todd St. John of Kimley-Horn and Associates. Our comments on the documents are
presented below.
MBI (Version 1.0, September 2008)
Sections 9 and 10 - Reporting Requirements
In addition to the reports described in Sections 9 and 10 of the MBI, the Sponsor shall also copy DWQ
on all correspondence relating to sales of credits to applicants.
Section 13 - Geographic Service Area
DWQ supports the concept of setting up the Umbrella Bank to provide Neuse Riparian Buffer mitigation
credits. However, the Geographic Service Area of the bank parcels shall be limited to the eight-digit
hydrologic units that the parcels are located within. Therefore, credits generated at the Westbrook site
can be used to offset impacts within HUC 03020201; credits generated at the Marston site can be used to
offset impacts within HUC 03020204; and credits generated at the Westbrook site can be used to offset
impacts within HUC 030202031. These credits must be tracked separately.
The policy of limiting the primary service area of a buffer bank to the HUC in which the bank is located
is based on a number of factors. From an overall standpoint, limiting mitigation credit to the HUC in
which the impact occurs minimizes the spatial losses of riparian buffers (e.g.avoid losses of buffers in
the Triangle area from being mitigated by credits from Wayne or Jones Counties).
15A NCAC 02B .0242 (4) states that "The mitigation effort shall be the same distance from the Neuse
River estuary as the proposed impact, or closer to the estuary than the impact, and as close to the
location of the impact as feasible. DWQ has interpreted this to be within the same HUC.
401 Oversight/Express Review Permitting Unit
1650 Mail Service Center, Raleigh, North Carolina 27699-1650
2321 Crabtree Boulevard, Suite 250, Raleigh, North Carolina 27604
Phone [phone] / Fax [phone]
Internet: http://h2o.enr.state.nc.us/ncwetiands
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Mr. Rinker
EBX Neuse Riparian Buffer Umbrella Mitigation Bank
Page 2 of 2
Finally, the requirement for mitigation within the same HUC as the impact is consistent with other
federal and state guidance on mitigation. Guidance on mitigation plan development from the U.S. Army
Corps of Engineers (USACE) Wilmington District (see
http://www.saw.usace.army.mil/WETLANDS/Mitigation/mitl)lan.html) states that "A compensatory
mitigation project, at a minimum, should be located within the 8-digit USGS Hydrologic Unit (HUC)
within which the impact is located".
Similarly, the Stream Mitigation Guidelines (U.S. Army Corps of Engineers, N.C. Division of Water
Quality, U.S. Environmental Protection Agency, Natural Resources Conservation Service, and the N.C.
Wildlife Resources Commission, April 2003) states in Section 6, Selection of Mitigation Sites
"Selection Criteria 1. Mitigation should be accomplished within one stream order of the impacted
stream, within the same subbasin (8 digit HUC) and as close to the impacted stream as possible".
Therefore, limiting the service area to the HUC where the bank is located is supported by the buffer
rules, as well as consistent with other federal and state agencies' mitigation policies.
Please revise Section 13 of your MBI to reflect this. Use of credits from a bank parcel to mitigate for
impacts outside the corresponding HUC may be approved by DWQ on a case-by-case basis, but may
result in the application of an out-of-HUC multiplier of 1.5 on the mitigation credit requirement.
In addition, separate ledgers must be developed and maintained for each site to track the credits
generated at each respective site.
Prosnectus/Monitorina Reports
Since the sites are in the ground and performing well overall, DWQ has no issue with these sites being
proposed for buffer mitigation credit generation. DWQ would like to schedule a site visit to all three
sites. Please contact Eric Kulz t [phone] to set up the site visits.
If you have any questions regarding our comments, please feel free to contact Eric or me at (919) 733-
1786.
Sincerely,
b ea--t4
Cyndi B. Karoly, Program Manager
401 Oversight and Express Review Program
cc: File Copy (Eric Kulz)
Kyle Barnes - DWQ WaRO
Matt Matthews - DWQ Wetlands and Stormwater Branch
Todd St. John - Kimley-Horn and Associates, P.O. Box 33068, Cary, NC 27636-3068
401 Oversight/Express Review Permitting Unit
1650 Mail Service Center, Raleigh, North Carolina 27699-1650
2321 Crabtree Boulevard, Suite 250, Raleigh, North Carolina 27604
Phone [phone] / Fax [phone]
Internet: http://h2o.enr.state. nc us/ncwetlands
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Michael F. Easley, Governor
William G. Ross Jr., Secretary
North Carolina Department of Environment and Natural Resources
Coleen H. Sullins, Director
Division of Water Quality
November 14, 2008
Mr. Thomas Rinker
EBX Neuse I, LLC c/o
Environmental Banc & Exchange
10055 Red Run Boulevard, Suite 130
Owings Mills, MD 21117-5822
Re: EBX Neuse Riparian Buffer Umbrella Mitigation Bank Sites
Westbrook and Nahunta Sites
Johnston and Wayne Counties
DWQ #08-1473 v2 and v3
Dear. Mr. Rinker:
We have received the following documents related to the above-referenced bank parcels: Umbrella
Mitigation Bank Prospectus dated September 2008, including the Year 3 monitoring report for the
Nahunta site and the Year 5 monitoring report for the Westbrook site; the Addendum to the Umbrella
Mitigation Bank Prospectus dated October 2008; and the executed Mitigation Banking Agreement
Version 2.0 dated October 2008.
According to the Umbrella Mitigation Banking Instrument (UMBI), the following Project Milestones
have been met, and the corresponding credits shall be released:
Nahunta - Wayne County (DWO #08-1473 v2)
1) Execution of the MBI, approval of the restoration and monitoring
Plans (site already constructed), delivery of financial assurances
(waived - project already constructed), and recordation of conservation
easement 20%
2) Mitigation Site Earthwork, Planting, and Installation of
Monitoring Plots 20%
3) Approval of As-Built Report 10%
4-6) Submittal of monitoring reports (site has been in monitoring for three
Years - 3 x 10%) 30%
TOTAL CREDIT 80%
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401 Oversight/Express Review Permitting Unit
1650 Mail Service Center, Raleigh, North Carolina 27699-1650
2321 Crabtree Boulevard, Suite 250, Raleigh, North Carolina 27604
Phone [phone] / Fax [phone]
Internet: htta://h2o.enr.state. nc us/ncwetlands
An Equal Opportunity/Affirmative Action Employer - 50% Recycled/10% Post Consumer Paper
Mr. Rinker
EBX Neuse Riparian Buffer Umbrella Mitigation Bank Sites
Page 3 of 3
Please feel free to contact Eric Kulz at [phone] if you have any questions regarding this
correspondence.
S?ncerely,
Cyndi B. Karoly, Program Manager
401 Oversight and Express Review Program
cc File Copy (Eric Kulz)
DWQ 401 /Wetlands - Amy Chapman
John Huisman - DWQ Nonpoint Source Planning Unit
Matt Matthews - DWQ Wetlands and Stormwater Branch
Norton Webster - EBX, 909 Capability Drive, Suite 3100, Raleigh, NC 27606
Todd St. John - Kimley-Horn and Associates, Inc., PO box 33068, Raleigh, NC
27636-3068
401 Oversight/Express Review Permitting Unit
1650 Mail Service Center, Raleigh, North Carolina 27699-1650
2321 Crabtree Boulevard, Suite 250, Raleigh, North Carolina 27604
Phone [phone] / Fax [phone]
Internet: htto://h2o.enr.state.nc.us/ncwetlands
No'e hCarolina
Naturally
An Equal Opportunity/Affirmative Action Employer - 50% Recycled/10% Post Consumer Paper