Natural Resource Development Policy: An Amendment to the Land Use Plan-1982

NATURAL RESOURCE DEVELOPMENT POLICY:
AN AMENDMENT TO THE LAND USE PLAN OF PAMLICO COUNTY,
NORTH CAROLINA
t
DCM COPY DCM COPY
lease do not remove!!!!!
Division of Coastal Management
1982

NATURAL RESOURCE DEVELOPMENT POLICY:
AN AMENDMENT TO THE LAND USE PLAN OF PAMLICO COUNTY,
NORTH CAROLINA
1982

The preparation of this document was financed in part
through a grant provided by the North Carolina Coastal
Management Program, through funds provided by the
Coastal Zone Management Act of 1972, as amended, which
is administered by the Office of Coastal Zone Management,
National Oceanic and Atmospheric Administration.
ii

.
Y
Table of Contents
Page
Introduction 1
I. Natural Resources
Introduction . . . . . . . . . . . . . . . . . . . . . . . . 3
A. Soil . . . . . . . 4
Be Forests . . . . . . . . . . . . . . . . . . . . . . . . . 7
C. Water 0 7
D. Recreation . . • 0 0 9
E. Wildlife • . • 0 0 9
F. Oil and Gas . . . . . . . . . . . . 0 11
G. Peat 11
H• Phosphate 11
II. Peat Harvesting
Introduction . . . . • • • . . . • . . • . • . • . . . . . . 22
A. Technology . • . . . . • . . . • . . . . . . . . . . . . 23
B• Market . . . . . . . . . . . . . . . . . . . . . . . . . . 24
C• Impacts . . . . • • . . . . • . . • . . . . . . . • • • • 27
1. Economic . . . . • . • . • • • . • . . • • • • • • • • 27
2. Transportation . • . . . . . . . . • 28
3. Water 29
4. Air 31
5. Habitats and Natural Areas . . . . . . . . . . . . . . 32
6• Forestry • . . • . . • • . • . . . . . • . . . . • . . 33
7. Agriculture . . . . . . . . • . . • . . . . • . • . • 34
iii

Page
III. Phosphate Mining
Introduction . . . . . . . . . . . . . . . . . .
35
A. Technology and Methods
36
B. Market
38
C. Impacts
39
1. Economic
. . .
39
a. Employment
b. Taxes
2. Social . . . . .
. . .
41
3. Transportation . .
. . . . .
42
4. Water . . . . . . . . . . . . . . . .
. . . . . .
43
5. Air . . . . . . . . . . . . . . . .
oo
44
6. Radiation . . . . . . . . . . . . . . .
.
45
7. Aesthetics . . . . . . . . . . . . . . . .
. . 0
47
8. Wildlife . . . . . . . . . . . . . . . . .
. . . . . .
48
9. Forestry and Agriculture . . . . . . . . .
. . . . .
48
10. Slurry and Borehole Mining . . . . . . . .
. 0
49
IV. Existing Policy Affecting Peat Harvesting & Phosphate Mining
Introduction . . . . . . . . . . . . . . . . . .
. . . . . .
51
.A. Description of Policy . . . . . . . . . . . .
. . . . . .
51
B. Existing Policy Applied to the Impacts of Peat
Harvesting
53
C. Existing Policy Applied to Phosphate Mining
. . . .
56
V. Natural Resource Development Policy . . . . . . ...
. . . . .
57
VI. Options Available to Implement Natural
Resource Development Policy . . . . . . . . . .
. . . . . .
61
Introduction . . . . . . . . . . . . . . . .
. . . . . .
61
A. State . . . . . . . . . . . . . . . . . . .
. . . . . .
61
B. Local . . . . . . . . . . . . . . . . . . . .
. . . . . .
62
1. Environmental Impact Statement . . . . . .
. . . . . .
62
2. Taxation . . . . . . . . . . . . . . . . .
. . . . . .
65
3. Land Use Regulation . . . . . . . . . . .
. . . . . .
67
r
iv

Number
1.
2.
3.
4.
5.
6.
7.
8.
Maps
Title
Significant Soil Types
Forested Areas . . .
Peat Resources and Oil Wells . . . . . . . . . . . . . .
Subsurface Distribution of Rock Types
within the Pungo River Formation . . . . . . . . . . .
Thickness of Pungo River -Formation . . . . . . . . . . .
Page
5
8
12
14
Hr.,
Overburden Thickness . . . . . . . . . . . . . . . . . . 17
Potential for Phosphate Mining . . . . . . . . . . . . . 19
Large Parcel Ownership 21
v

INTRODUCTION
Pamlico County is blessed with a great many natural resources: clean
air, good agricultural land, a good water supply, forests, productive wetlands
and estuaries, varied wildlife, abundant natural beauty, and peat and phos-
phate deposits.
The economic, social and spiritual well-being of the people of the county
has depended on sustaining the quality and quantity of these resources since
the county was first inhabited.
This dependence is expected to continue, and probably to increase, as the
rising demand for food increases agriculture, aquaculture and fishing in the
county and as the rising demand for recreational facilities increases second
home development, recreational fishing and recreational boating in the
county.
The development of each of these natural resources is related to all of
the others and can have an immediate, serious, and long-lasting impact on one
or more of the others. Impacts on the local economy can be easily measured in
fiscal or monetary terms, but impacts on the social and spiritual well-being
of the people may be of equal or even greater importance even though they are
difficult, if not impossible, to measure in fiscal terms.
It is the purpose of this report to describe the natural resources of the
county, the processes by which peat and phosphate resources will likely be
developed and the existing policy affecting that development process at the
time the report was being prepared.
The report also contains a statement of policy regarding the development
of the natural resources of the county (Note: This statement of policy
1

must be adopted by the Pamlico County Board of Commissioners before it has any
official status.) and a discussion of options the county can explore to
implement this policy.
2

Chapter One
NATURAL RESOURCES
Introduction
Pamlico County depends on its natural resources for its economic, social
and spiritual well-being. There are a number of competing uses for the nat-
ural resources in Pamlico County. The decision to develop these resources
should take into consideration the impact that development will have on the
other resources of the county and the irreversibility of the development deci-
sion.
Agriculture, forestry, recreation, and fishing are the major income pro-
ducers in the county. As each activity increases and affects the others there
are trade-offs involved. Much of Pamlico County exists today as it always
has. It is the scenic beauty of the county's open lands and miles of coast
that make it attractive for recreation and wildlife habitat; it is the undis-
turbed estuaries and clean waters that make commercial fishing possible and
profitable; and it is the rich soils that make it successful farming country.
But in addition to providing revenues in the county, Pamlico County's
natural resources make the area an attractive and comfortable home for its
residents.
Part I of this report is an inventory of natural resources in the county:
what resources are present, in what amounts, and where.
3

A. Soil
Agriculture is a major economic activity in Pamlico County, occupying the
most land after forest lands. Predominant soil associations suitable for -farm-
ing within the county are Lenoir -Leaf and Portsmouth-Woodington (see map num-
ber 1). Both soil associations consist of nearly level uplands which are mod-
eratly well -drained with low flooding potential. In 1978, 42,597 acres of
land in the county were being farmed which yielded gross crop and livestock
receipts of $10,761,000 (1978 Census of Agriculture, 1980). The average farm
size was 174 acres.
Yield per acre for corn, soybeans, Irish potatoes, and tobacco, the major
cash crops, has historically been higher for Pamlico County than for the state
as a whole:
North Carolina (1980) Pamlico County (1980)
Yield Acres Yield Acres
Per Acre Harvested Per Acre Harvested
Corn 60 bu 1,730,000 103 bu 10,300
Irish
Potatoes
133 CWT
16,700
130 CWT
2,600
Tobacco
2,011 lbs
378,800
2,080 lbs
690
Soybeans
18.5 bu
1,930,000
27 bu
22,400
Wheat
35 bu
300,000
45 bu
4,600
Yield per acre in Pamlico County as compared to the other central coastal
counties is shown in Table 1.
4

��
w
b
r

Table 1
CENTRAL COASTAL COUNTIES
1980 PRODUCTION
Yield per
Acre
Irish
Potatoes**
Corn
Tobacco
Soybeans
Wheat
(CWT)
(BU)
(LBS)
(BU)
(BU)
Beaufort
145
73
2,180
24
50
Carteret
145
75
2,085
23
Craven
150
51
2,030
18
36
Greene
*
56
2,185
23
50
Hyde
*
103
---
29
38
Johnston
90
49
2,215
15
36
Jones
*
82
2,065
22
36
Lenoir
*
64
2,180
20
41
Pamlico
130
103
2,080
27
45
Pitt
*
54
2,125
18
37
Wayne
125
64
2,310
22
40
Wilson
140.
49
2,245
15
39
*Less than 50 acres in production.
**Pamlico County is the second leading county in the state in the
production of Irish potatoes (2600 acres in production). Pasquotank is the
leading county (2800 acres in production).
6

B. Forests
Four major commercial timber companies own land in Pamlico County:
Land in Acres
Weyerhauser 20,660.92
Pamlico Timber 16,336.0
International Paper 11,100.07
Taylor 14,051:20
Total 62,148.19
Forestry, along with farming, is an important Pamlico County economic
activity. Forest plantations are becoming more prevalent in the area as land
clearing increases. Tree farming is becoming popular with area farmers. When
drained and cleared, pocosin lands make suitable loblolly pine farms.
Forest Service data for Pamlico County (1974 data --most likely unchanged)
. shows a total of 147,115 acres of commercial forest land (see map number 2).
In 1979, Pamlico County lands yielded 4,149,000 board feet of sawtimber and
29,807 cords of pulpwood.
C. Water
Commercial fishing in Pamlico County produced a 1980 catch of"21.4 mil—
lion pounds,
and gross sales of $9,736,730. Primary fishing ports in the coun—
ty include Bayboro, Hobucken, Lowland, Oriental, Pamlico, Vandemere, and
Whortonsville. Hard crabs in the Pamlico Sound have been of major importance
for years. Total 1980 landings for hard crabs, in North Carolina, were the
highest ever.
7

Map 2
w
0
! M , A r , !

D. Recreation
Pamlico County has 348 miles of bay and estuarine shoreline. The 348
miles is further divided into 51 miles of beach shoreline and 297 miles of
non -beach shoreline. Two miles are classified as public recreation and ten
miles for private recreation. Twenty-nine bays, rivers, creeks, and streams
are considered to be trust waters. Their use is generally restricted to fish-
ing and boating.
The beauty of the county and the surrounding water attracts thousands of
visitors to the region year-round. The recreational use of these areas for
sport -fishing, pleasure -boating and other water -oriented activities is very
important to the county. The ports of Oriental and Minesott Beach attract
sailors, water skiers, fishermen and other vacationers.
Second home development has followed recreational development as people
choose to spend more and more time in the county. The county generally en-
courages second home development and tourism to the extent that it will not
damage the natural resources that attract the visitors.
E. Wildlife
The Natural Heritage Program of the state Department of Natural Resources
and Community Development is in the process of inventorying the natural areas
and areas of ecological significance in Pamlico County. The study is sched-
uled for completion in August 1982, but in the absence of this definitive
study it is obvious that there are many valuable and beautiful natural areas
in the county.
Hunting in the county consists of hunting wild ducks in the salt marshes
and also some bear, deer, quail, marsh hens, etc. There is a wildlife refuge
near Hobucken.
9

The coastal area in general is important to the state as habitat for many
game species. For example, coastal counties support much of the deer popula-
tion. In a state ranking of high, moderate, low or few, Pamlico County is
considered to have a moderate distribution of deer.
Many endangered or threatened species are critically dependent on wet-
lands. Other species recognized as needing protection and who are dependent
on lowlands include bobcat, cougar, osprey, and otter.
Economic values of wildlife and wildlands are not easily quantifiable,
but evidence indicates that they contribute significantly to the economic base
as well as to the quality of life in Pamlico County. For example, the North
Carolina Wildlife Resources Commission estimates trapping to be at least a $10
million business in North Carolina. Fur harvest reports show that the 12
coastal counties of Beaufort, Bertie, Carteret, Craven, Dare, Hyde, Jones,
Martin, Pamlico, Pitt, Tyrrell, and Washington produce 17 percent of the state
harvest of muskrat, 32 percent of the state's harvest of nutria, 16 percent of
the state's harvest of mink, and 15 percent of the state's harvest of otter.
The U.S. Fish and Wildlife Service in cooperation with state wildlife re-
source agencies undertakes a national economic survey every five years. The
latest report is for 1975, and showed that North Carolina hunters and fisher-
men spent over $746 million in North Carolina during that year. Hunting and
fishing revenues for the 12 coastal counties contributed $90 million to local
economies; an additional $3.5 million is generated by hunters and fishermen in
state and local taxes within the coastal counties.
10

F. Oil and Natural Gas
A series of exploratory wells were drilled east of Highway 55 near Gibbs-
town by Carolina Petroleum in 1947, but no deposits were discovered (see map
number 3). No wells have been drilled since 1947, and there is no indication
that oil or natural gas exist in the county.
G. Peat
The state has about 1,000 square miles of peatland (640,000 acres) con-
taining 600 million dry tons of peat. North Carolina's major peat deposits
are located in evergreen shrub bogs called pocosins. Pamlico County contains
one major peat deposit and a portion of another. The Light Ground Pocosin
peat deposit located in the south central part of the County includes about
9.26 square miles and contains about 5.2 million tons of moisture -free peat.
The Gum Swamp -Bay City Pocosin located on the border of Pamlico and Beaufort
Counties includes about 6.8 square miles and is underlain by peat in varying
thicknesses.
The Light Ground Pocosin is, by size, composition, and thickness, the
more valuable deposit (see map number 3). The peat deposit averages about
4 1/2 - 5 feet deep, but ranges from 2 to 12 feet deep. The heating value
ranges from 9,800 to 10,999 btu/lb, with a median of 10,500.
The peat in the Gum Swamp -Bay City Pocosin is less likely to be mined
than the Light Ground Pocosin. The deposit is broad and shallow, its average
depth ranging from 2 to 4 feet. The average heating value is 9280 btu/lb.
H. Phosphate
Phosphate deposite that are attractive targets for present-day mining
techniques occur in eastern North Carolina within a sedimentary rock unit
11

1�
PEAT RESOURCES
OIL WELLS
(dry holes)
IN ,
N
w
b
W

called the Pungo River Formation. The thickness of the rock unit, the depth
to which it is buried beneath overlying sedimentary rocks, and the distribu-
tion of rock types that comprise the Pungo River Formation are factors that
must be considered when evaluating the potential for phosphate mining in
Pamlico County.
In Pamlico County there are four rock types (facies) of the Pungo River
Formation:
1. Greater than 75% sand; high-grade phosphate deposits
2. 50-75% sand; medium -grade phosphate deposits
3. Greater than 50% clay; low-grade phosphate deposits
4. Mixed clay, sand and carbonate; low-grade phosphate deposits.
Map number 4 shows the distribution of the four facies of the Pungo River
Formation in Pamlico County.
13

C 1
O
0 N Ir r
-v a
0
o
c.
V
SUBSURFACE DISTRIBUTION
OF ROCK TYPES WITHIN
THE PUNGO RIVER FORMATION
MIXED CLAY SAND
AND CARBONATE
Greater than 50% CLAY
50-75% CLAY
. Greater than 75% CLAY
4 O
G
w
b

In general, the Pungo River Formation becomes thicker toward the north-
east. In the Aurora area present mining activities are being conducted where
the Pungo River Formation is from 60 to 80 feet thick. Map number 5 shows the
subsurface thickness of the Pungo River Formation in Pamlico County.
The depth to which the Pungo River Formation is buried beneath younger
sedimentary rocks generally increases toward the east in Pamlico County. In
the Aurora area present mining operations are being conducted where sedimen-
tary rocks overlying the Pungo River Formation are 60-80 feet thick.
Map number 6 shows that the Janerio Area has the least amount of overburden.
The data available for determining the quality, thickness, and overburden
of phosphate in Pamlico County is based on 24 data points in a land area of
approximately 335 square miles. To properly evaluate the potential of phos-
phate resources in Pamlico County would require a study similar to that done
by J.O. Kimrey in Beaufort County (257 data points in a land area of approxi-
mately 830 square miles).
The data presented here must be viewed within the framework of present
economic conditions in the phosphate market and advances in mining technology.
According to discussions with North Carolina Phosphate Company and Texasgulf,
two companies presently mining in Beaufort County, it is unlikely that mining
operations will occur in Pamlico County before 20-30 years in the future.
Mining technologies and the market for phosphate will change a great deal.
Phosphate not presently mineable may be accessible in years to come.
North Carolina Phosphate Company recently purchased a large tract of
which 2000 acres lie in Pamlico County. The entire tract of 33,000 acres has
a present value of $330 million. TexasGulf owns 16,336 acres in the northwest
corner of the county. Growth pressures in Florida are forcing phosphate
15

— !■ea��ggiii//�iii _
� �'C'���o►�i ��
o �is!!n �iyi/a�ii� � •v r
Orion?nil
ii////nu.-
nllnunimp-
n
iiiiii■ii//Iiiisauna, 11.4 Vilna,
no
,. �
Del/owO1n we rnzn/ppif
C���\a%III
��I��/'r■�\Ali;��///%����Rir��i..,a;�7[�/6►•ifii /
in 1�In:•r�����r�,Cd�4/i1■�1d■\�/�+11e�� .
oil
17 WA;
Or
in
r
43
.b
Ln

O
(1 �
(1 �
i,
r
pw• ae•n�►•�.•__it�.r��� i�i
■ttt:
a lr 7�tttnt' k'"J•I
■■t�r.
�� v 41ttt►a �• � 1
■m■l 11
GiiiGG 1
lHEM=1
� 11

interests in that state to look elsewhere. North Carolina looks highly at-
tractive to these companies. A change in technology or economic conditions
could bring a new company into the area sooner than predicted by already
established phosphate interests in North Carolina.
Map number 7 incorporates data shown in maps 4, 5, and 6. Areas are
designated to suggest the potential for phsophate min:ag in Pamlico County.
4.1

w
b
V

1. Land Ownership Patterns
A relatively large proportion of the land area of Pamlico County is owned
by a relatively small number of owners (see map number 8). This means that
these areas are often more easy to develop because the developer does not have
to assemble the land area required by negotiating with the owners of a number
of smaller parcels.
N11

Ma
LARGE PARCEL
712.QT.TTIP
500-2000 A,.
2000-5000 Ac.
Greater than
10,000 Ac.
co

Chapter 2
PEAT HARVESTING
Introduction
The peatlands of eastern North Carolina are among the least appreciated
of all wild areas. Peat is an accumulation of undecomposed or partially
decomposed remains of grasses, trees, mosses and other marsh and swamp plants
in a wet environment. Anaerobic conditions prevent fungi and bacteria from
decaying the organic material as they ordinarily would. Peat accumulates at a
rate of about three inches a century.
Peatlands have generally been considered worthless. Farmers have found
that once the timber and vegetation is removed, peatlands provide an excellent
growing medium. But peat also has a high potential for energy production. As
a result, energy companies, large farming corporations and the federal govern-
ment are exploring ways to develop and use the peatlands.
Four state peat mining permits are active though no market has been found
for peat.
There are a number of environmental problems associated with peat mining.
These wetland areas perform roles that are barely understood in sustaining
wildlife and protecting freshwater and saltwater estuaries. Dr. Eville
Gorham, a wetlands specialist at the University of Minnesota, has called peat -
lands, "the most delicate adjustment of vegetation to hydrology and water flow
known to man."
In this section on peat harvesting a brief description of the technology
of mining is offered, followed by discussion of the environmental and socio-
economic impacts of peat mining.
22

A. Technology
The technology for clearing and draining peat lands in preparation for
harvesting is similar to that for agriculture, and if properly done the even-
tual use of the land may be agricultural.
The first phase of converting peat lands requires artificial drainage
consisting of three steps: primary drainage, secondary drainage, and grading.
The primary drainage system consists of catcher, outfall, and transportation
canals. Catcher canals are spaced about a half mile apart and empty into
transportation or outfall canals which in turn empty into a local drainage
outlet.
The secondary drainage system consists of field ditches located perpendi-
cular to catcher canals at intervals of about 160 feet. These ditches collect
surface and subsurface waters and carry them to the primary drainage system. '
The primary and secondary drainage system canals form rectangular fields
which, if they are to be farmed after the peat has been harvested, are leveled
to remove potholes and depressions and graded in two directions at a 0.5 per-
cent slope away from a crown in the center of the field toward the drainage
ditches.
Phase two involves the clearing of existing cover vegetation including
harvestable timber, other trees, brush, and buried wood. This is accomplished
by bulldozers using blades and rootrakes. The remaining vegetation is then
pushed into windrows which are periodically burned and repiled until, after a
number of years, they are eliminated.
23

Peat is next removed from the land by harvesting a one -foot deep layer
and laying it on the ground to dry to between 30 and 50 percent moisture con-
tent. Harvesting methods incluce: (1) milling, whereby the top 4 to 10
inches are disturbed and left to dry for a few days, and picked up with a vac-
uum or conveyor harvester 1 to 2 inches at a time; (2) sod cutting, whereby a
wheel cutter (saws) removes chunks and extrudes them through an auger back on-
to the field for drying and recovery. Both methods are used depending on the
condition of the land, i.e., how much wood and brush is present. When the
peat drying has been completed, the peat is removed from the field. This pro-
cess continues for a period of 4 to 5 years until the 4 or 5 feet of usable
peat, on the average, has been harvested.
In many cases, stripping the peat will create shallow pits. These will
often lie below the existing water table, causing the ground to become soaked
most of the year. The remedy is the continual pumping of water up to higher
level canals where it can flow away by gravity. This need for perpetual
pumped drainage increases the costs of farming the land after stripping is
finished. This cost, though, may often be offset by the general high agricul-
tural productivity of the soils exposed by stripping.
B. Market
Surveys have been conducted, products have been analyzed, and markets
reviewed in North Carolina to determine whether peat is a competitive source
of energy with a market in this region. Four state permits are active, and
two more are pending. Peatco in Pamlico County has received its permit.
Clearly the peat in North Carolina can be mined. The question is whether peat
mining can show a profit within today's costs and sales.
24

ing:
The recent state peat mining task force concluded a market was develop-
There is not yet an established market for North Carolina peat, but
a major market is expected to develop within five years as proposed
methanol plants and peat -fired generating plants are built. The
first peat sold, perhaps within six months (from March 1981) will
probably be bought by Weyerhauser to fuel its new boiler at
Plymouth.1
The value of peat cannot be based on market prices as a peat fuel market
does not presently exist in the United States. In Finland, where peat is com-
monly used as a fuel for generation of electricity, prices range from $12.00
to $14.00 per ton delivered. North Carolina peat has less moisture'and a
higher BTU content than Finnish peat (Richardson, ed., 1981).
A peat fuel price can be determined by deriving a price at which peat
would be commercially competitive when compared with high sulfur coal. Peat
and high sulfur coal are similar in that both are bulky, solid fuels and have
high volume ash residuals.
Using the example of coal vs. a peat -fired boiler, a comparison is made
between the two fuels. The cost of producing electricity using high'sulfur
coal has been estimated to be $308/kwh (RTI, 1979). Using this final produc-
tion cost and taking the estimates of fixed costs, operating and maintenance
costs, and thermal efficiency for each fuel, the price of peat fuel can be
derived given the prices of all other fuels. The value of peat calculated in
this manner is $13.73/ton (Richardson, ed., 1981). Using this derived price
to value peat fuel, the annual benefits from mining sufficient peat to operate
a 125 mw peat -fired utility boiler, 92 tons per hour, is approximately $8.8
million per year; on a per acre basis, the benefits of peat mining would be
approximately $13,000 per acre (benefit stream over five years discounted at 8
percent).
25

There is some concern. by First Colony Farms, Inc. (FCF) in Creswell,
North Carolina, that the above figures do not adequately reflect a real value
for peat. FCF has begun mining peat on an experimental basis (300 acres).
Thus far they have argued that the figures for peat are low. Again, it is
difficult to determine a'value for peat when no market exists.
A final comment about peat fuel value concerns the time frame of this
benefit stream. The planned life of a utility boiler is typically around
thirty years. Therefore, the annual benefits will flow for thirty years and
then drop to zero. All other benefit streams discussed in this study flow
indefinitely in that they do not result from the consumption of the resource.
Peat Methanol Associates (PMA) announced plans in June 1981 to build a
plant to convert peat into methanol at First Colony Farms near Creswell in
Washington County. The plan is contingent on private financing and a federal
guarantee that the methanol would be sold for at least 75 cents a gallon. The
company hopes to extract 156,000 gallons of methanol from 2,123 tons of peat a
day by 1984.
The quality of the peat mined in this state is adequate for use as an in-
dustrial fuel and can be used in wood -fired boilers with few problems. While
peat is far bulkier than coal, its BTU content, pound for pound, is comparable
to Eastern Bituminous coal. Peat rates from near 10,000 to 10,500 BTU/lb. It
is wet and heavy when it comes out of the ground, and even when dried to at
least 50 percent (optimum 30 percent), it creates shipping problems. Because
of its bulk, transport is expensive, and stockpiling and handling at the use
point is somewhat cumbersome and bothersome.
Peatco, the company which has applied for a permit to mine peat in the
Light Ground Pocosin, could supply peat to the methanol plant in Washington
26

County, but shipping problems would be a substantial obstacle. Their prices
would not be competitive with those of FCF. The industrial boiler at the
Weyerhauser plant in Plymouth is designed to burn peat as well as wood chips,
oil, or coal, but so far, no other boilers in the vicinity of the Light Ground
Pocosin are as well equipped.
C. Impacts
Economic
The economic impacts of peat harvesting will be limited in Pamlico County
due to the existence of only one substantial deposit, the Light Ground Poco-
sin. There is peat in the Gum Swamp -Bay City Pocosin, but it is found in
amounts and at depths which may not be economically feasible to harvest.
According to Peatco, estimates for employment at their peat harvesting
site are 30 direct jobs and 30 indirect jobs --trucking, etc. These figures
are based on a production rate of 400,000 tons of peat per year, but actual
production will depend on demand. Production would be unlikely to occur un-
less there was a steady market for a minimum of 100,000 tons of peat per year.
At that level direct employment would fall to 15-18 persons.
Both land clearing and peat mining activity would be continual and over-
lapping, and no distinction is made in the 30 direct jobs as to what activity
is associated with each position. The work is largely unskilled, and no job
training is anticipated. Employees are expected to come from within Pamlico
County, however, according to Peatco.
Property tax consequences of land clearing, peat mining, and farming are
based on -conversion of woodlands presently assessed at $80, $100, or $150 per
acre, depending on quality. Land that now has canals and roads adequate for
good forest draininage, fire control, and harvesting is classified "good",
27

less developed land is classified fair, and undeveloped land with poor drain-
age is classified poor. After peat is removed from the land, the cleared area
may be taxed as farmland, if it is farmable, in which case the value in-
creases by a factor of 2.5 to 5 times the current assessed value. Other-
wise, the land will be assessed as woodlands or. wasteland. Some of the deep
organic buffer areas may be assessed as wasteland, but other parts of the buf-
fer may contain fair timberland.
Transportation
Pamlico County does not have an extremely well -developed primary road
system. Highways 55, 304, and 306 form the primary network in the county.
Access is limited due to the confluence of the Neuse and Pamlico Rivers into
the Pamlico Sound. The major access roads to the Light Ground Pocosin are
Highways 55 and 306, two of the better roads in the county. At present the
truck traffic on these roads is mostly farming equipment, fishing trucks, or
trucks from light industry in the area. Present traffic counts are 4600
vehicles daily and 2000 vehicles daily, respectively.
One of the deterrants to industrial development in the county, cited by
the 1980 land use plan for the county, is the lack of a major north -south
transportation route. Ferries operate across the Pamlico and Neuse Rivers
now, and although interest has been expressed in building a bridge across
these two rivers construction in the foreseeable future is unlikely.
The District Engineer for the county foresees no problems with increased
traffic on Highways 55 and 306 which would undoubtedly be used by Peatco to
move the harvested peat to market. Secondary roads could be more of a problem
since most roads leading out of the Light Ground Pocosin area are still un-
paved.
28

Maintenance and improvement of county roads is the responsibility of the
N.C. Department of Transportation and is funded by money allocated by the
General Assembly. Funding is based on the amount of mileage of roads in the
county, and not on existing or anticipated traffic counts.
Water
Peat mining itself and the eventual use of the site for agriculture, pose
a number of water quality and water management problems. The major effects of
clearing and draining property are fresh water intrusion, pollutants (includ—
ing organics, nutrients, sediment bacteria, and toxics), and altering of basic
hydrology.
Fresh water intrusion: No impact of coastal land conversion has been
studied more than the effect of surges of fresh water into primary nursery
areas of the estuaries. The estuary has long been documented as a dynamic
system that is important for transporting eggs and larvae into primary nursery
areas and permitting young organisms to remain in the nursery area. Heavy
fresh water runoff, which occurs both in the clearing and drainage stages of
agricultural land preparation and peat mining, appears to change the salinity
of adjacent brackish estuaries and reduce the abundance of some commercially
important species such as shrimp.
Approximately 35 miles of canals have already been dug in the Light
Ground Pocosin to assist natural drainage. Most of the wetland appears to
drain northward into the Bay River and Neal Creek. A small amount of water
flows into Dawson Creek to the south and Greens and Trent Creeks to the east.
The drainage plan for Peatco's proposed peat activity will result in water
runoff from the peat fields being directed exclusively to Neal and Dawson
29

Creeks. The receiving waters of Dawson Creek are not classified as primary
nursery areas since, when that classification was made, the Division was not
classifying any inland waters. Dawson Creek is presently classified as
"inland waters," but it is nevertheless known to be utilized by juvenile
estuarine organisms which are economically important.
Pollution and Hydrologic Balance: Canals draining agricultural and for-
est lands speed the release'of fresh water from the land into the estuaries.
Development, swamp drainage, channelization, road construction, etc. in the
major river basins increase stream discharge.
As the rate of runoff from land is increased, the ability of swamps and
marshes to filter nutrients and pollutants is reduced. In addition, agricul-
ture and silviculture, which use fertilizers and pesticides, increase the
amount of pollutants that enter an estuary. It is probably safe to say that
short-term pollution problems from clearing and ditch construction are not as
severe as the continuing pollution from agricultural operations. A variety of
pollutants from farmlands, tree farms, forest harvest operations, and peat
mine sites are released continuously, including nitrogen and phosphorus, in
significant amounts. Other pollutant problems include pathogens and other
pollutant pesticides.
Sediment load is also increased with fresh water runoff. This results in
suffocation of eggs and larvae as well as filling of nurseries. The canal
networks draining agricultural and peat lands periodically must be dredged to
remove the sediment built up due to upland erosion, windborne erosion, and
local clearing activity.
a

Generally, when drainage systems are developed, it is estimated that the
water table in the pocosin is lowered about three feet, from an average posi-
tion of about one foot below land surface to an average position of about four
feet below land surface. Available data shows that the water budget for the
area remains essentially the same under natural and drained conditions; how-
ever, there is an important difference. the runoff element of the water bud-
get before development consists of sheet flow over the land surface. After
development, it consists of outflow through the artificial canals. While this
aids in drying organic soils for agricultural purposes, it affects water qual-
ity in a manner not yet completely understood. Also, drainage causes organic
soils to shrink and subside and can dry irreversibly because the ground sur-
face cracks, forming clods that will not rewet.
Air
Air quality is a concern primarily because of the regional practice of
burning windrows and timber during farmland and forest land clearing for most
of eastern North Carolina, including Pamlico County. A new permit system run
by the Division of Forest Resoucres has been instituted (G.S. 11360.22 -
11360.26). It sets up requirements for burning debris associated with land
clearing. Generally, the volume depends on the percentage of organics and
atmospheric conditions, and burning is restricted to the hours between 9 a.m.
and 3 p.m.
A second air pollution problem that may arise is actually a water pollu-
tion problem. If sufficient wind breaks are not left in a field, pollutants,
such as nutrients or pesticides attached to soil particles, can be carried by
the wind into adjacent bodies of water. In certain cases, these pollutants
can reach significant levels. Steps taken during the land clearing process
and reclamation can ameliorate this problem.
31

Habitats and Natural Areas
Aesthetic --or visual --satisfaction is another value provided by pocosins.
The scenic diversity and contrast which this unique landscape offers has psy-
chological impacts which can be reflected in social and economic benefits.
Presently, no monetary values have been placed on such benefits. Peat mining
would totally change the character of the wetland and disrupt the natural di-
versity this habitat provides.
The present and projected rates of accelerated conversion to agriculture
threaten the natural system of the coast with consequences for wildlife, eco-
system integrity, and the quality of the coastal landscape. The wetlands
of the coast have created special types of wildlife habitats that are highly
valued by the people of North Carolina. There is no public management system
that exists to deal with the alterations taking place on coastal lands.
The rapid clearing and draining of coastal lowlands for peat mining and
agricultural activity is eliminating a habitat for game species and other en-
dangered species. The clearing process involves the complete removal of all
existing vegetation thereby eliminating the habitat for certain wildlife
species such as black bear, bobcat, and white-tailed deer. These species are
then eliminated or reduced such that recreational hunting of them is no longer
suitable. The black bear and bobcat could disappear from the area if the cur-
rent rate of forest clearing continues.
There exists a strong possiblity of the loss of unique vegetative commun-
ities and their wildlife populations. Existing populations of the red -
cockaded woodpecker, the bald eagle, and possibly the cougar could be further
reduced. Windrows, tree belts, areas retained in forestland and other planned
management practices are presecriptions for using the land to protect these
species.
32

A value should also be placed on the potential future use of pocosins.
Leaving pocosins in their natural state does not foreclose the option of their
conversion in the future. Pocosin lands have values in and of themselves and
as the reamining portion of a rapidly diminishing resource. As more is
learned about these lands, future generations may value them more highly.
Given uncertainty about the role pocosins play in the coastal ecosystem in
North Carolina, such an irreversible commitment of these natural areas must be
carefully weighed.
Forestry
Forestry or silviculture is an alternative to agricultural use after the
peat has been harvested from a pocosin. Intensive forest management would
require much the same preparation of drainage systems as required for row crop
farming, including peat removal. The land could provide a high yield of pine
sawtimber and pulpwood if properly prepared, seeded and managed for 30 years.
Foresters have limited experience with silviculture on North Carolina's
wetsoils, but companies like Weyerhauser expect extensive site preparation and
silviculture processes to raise the annual yield of a pocosin-type forest.
Burning of the woody materials that have been cleared from the land is the
only present economical method of dealing with clearing residue. Energy costs
to remove, chip, and transport this material presently exceeds its value as a
fuel.
Management of pocosins like the Light Ground for timber production is not
as detrimental to wildlife as agriculture is, but some similar problems occur.
Pocosins that have been cleared, fertilized, and planted in pine are very pro-
ductive for the first 4 to 5 years, providing abundant forage for deer, and
grasses that give food and cover to small game. This situation changes, how-
ever, after the pines obtain dominance and shade out understory vegetation.
33

Agriculture
Once the peat is removed from a pocosin, the mineral soils left are well
suited to corn and soybean crop production; but approximately 5 to 6 tons of
limestone per acre must be added to the soils. Agriculture production yields
on high organic matter soils are higher than state averages. One hundred and
five to 130 bushels/acre for corn and 32 to 40 bu/acre for soybeans represent
five year average yields on well developed soils. State averages compara-
tively are 60 to 80 bu/acre for corn and 18 to 24 bu/acre for soybeans. The
effects of land clearing and row cropping on coastal lands though includes
long-term pollution from pesticides and fertilizers, fecal coliform from ani-
mal pastures, and sedimentation from runoff problems. Alteration of the land
use and lowering of the land level has a significant effect on the character
of the area. A system of canals must be maintained to provide adequate drain-
age. This continual drainage must be monitored and regulated to prevent major
changes in fresh water flows into coastal estuaries.
Row cropping and tree farms also produce little habitat diversity and
therefore do not encourage wildlife diversity.
34

Chapter 3
PHOSPHATE MINING
Introduction
Interest in phosphate ore in Beaufort County and surrounding Pamlico and
Hyde counties arose in 1951 when American Metals Company started exploration
for phosphate. They failed to make any discovery of a commercially valuable
body of ore.
In 1959, Texasgulf looked at North Carolina phosphate but considered the
mining cost prohibitive at that time. But in 1961, Sun Oil brought up the
first tonnage quantity of North Carolina phosphate. By the mid-1960s, Texas -
gulf and others showed a renewed interest in phosphate mining.
Two main problems have beset the North Carolina phosphate development
from the beginning. The first problem is mining a deposit which is below sea
level which is near an ocean connected waterway. It is overlain by 50 to 200
feet of overburden and underlain by a major artersian aquifer, the Castle
Hayne Formation.
The second problem is the production of a high grade phosphate concen-
trate from the ore without dilution by other sand, shell, and lime stones
which is found in some sections of the ore.
By 1980, Texasgulf's deposit in Beaufort County yielded 4.3 million tons
of phosphate worth $107.5 million. Any technological problems that had
plagued early mining operations had been alleviated or substantially reduced.
Pamlico County contains phosphate deposits, but the thickness of the
rock, the depth to which it is buried, and its distribution make its present
mining unlikely. But new mining techniques are being developed which would
make Pamlico County's phosphate deposits commercially valuable.
35

The following discussion centers on present mining techniques and the im-
pacts of these techniques, and what new methods are being studied which might
make Pamlico County's deposits valuable, sooner.
A. Technology and Methods
There are two quite distinct methods of mining phosphate of the type and
location of that in coastal North Carolina. The first and clearly predominant
method is a form of strip mining. This involves the removal of the ground
covering the mineral (overburden) and then removing the phosphate itself.
Once the overburden is removed (there are several different methods of doing
this), draglines scoop up the ore in large bites and pile it on the bench of
the mine. There, high pressure jets of water are used to form a slurry, a
mixture of sandy ore and water.
The slurry of phosphate ore is pumped through a long pipeline to the
mill. There, the ore is screened to remove large particles and then washed to
remove clay and silt.
The next step is flotation, a process where quartz sand is separated from
the phosphate sand. The quartz sand and silt are returned to the mined area
as landfill. The phosphate sand --called phosphate concentrate --is either
dried or calcined.
Calcining the rock involves roasting it at about 1500°F. This helps to
purify the product by removing organic compounds, carbon dioxide, and water.
Most of the calcined phosphate rock is used as feedstock for the phos-
phoric acid plants. The remainder can be sold to customers in bulk.
Borehole mining, also known as slurry mining, is a second process for
removing phosphate. A tool incorporating a water jet cutting system and a
downhole slurry pumping system, mines minerals through a single borehole
drilled from the surface to the buried mineralized rock. Water jets generated
36

in the mining tool erode the ore and form a slurry. The slurry flows into the
inlet of a slurry pump where it is lifted to the surface and into an ore bin.
The bin collects the ore while allowing the water to flow into a pond. This
pond acts as a source of water for a series of pumps which supply water to the
cutting jet and the downhold slurry pump.
To date this tool has been successfully used to mine coal and uraniferous
sandstones on an experimental basis. Future experimental mining operations
include extraction of oil sands and phosphates. One of the benefits of the
system is that small or erratic deposits can be mined; whereas it might be
cost -prohibitive to stripmine these areas. Environmental impacts thus far are
shown to be minimal. No overburden is removed. Groundwater quality is nor-
mally not impaired.
Slurry borehole mining is an outgrowth of U.S. Bureau of Mines research
begun during 1973. It promises to be an attractive method for extracting oil
sands and other underground ore deposits. It has the advantages of minimizing
surface disruptions, waste rock piles, damage to ground water quality and hy-
drology, and surface water pollution. One serious problem, subsidence of the
ground above the mine cavity, is being ameliorated somewhat by backfilling of
the cavities.
During the summer of 1980, this borehole mining and backfilling technique
was successfully demonstrated by the Agrico Mining Company in St. Johns Coun-
ty, Florida. Agrico is the parent company of North Carolina Phosphate Corpor-
ation which is developing land in Beaufort County and owns land in Pamlico
County.
37

In Agrico's application, 1800 tons of phosphate rock were mined from
three holes and most of this material was returned as backfill during reclama-
tion. During mining of the first two holes, ground water was pumped out of
the cavity, and roof collapses occurred. In the third hole both complete
excavation and backfilling were accomplished entirely underwater.
B. Market
Phosphate is an essential ingredient in fertilizer. Phosphate -based fer-
tilizers are produced by combining phosphate rock with sulphuric acid. Texas -
gulf reports that the fertilizer industry consumes 70% of all phosphate pro-
duction. Texasgulf (TGI) and North Carolina Phosphate Corporation (NCPC) are
discussed here as examples as they presently own phosphate reserves in Pamlico
County.
Rail cars are the principal carrier of products leaving the phosphate
operations of Texasgulf in Beaufort County. Some products are shipped via
barges to the port at Morehead City. Self -unloading barges are used with a
capacity of 2200 tons. They carry dry phosphate materials down the Pamlico
River and through the Intracoastal Waterway to Morehead City. Phosphoric acid
is also shipped to export markets through the Morehead City port.
In the last 20 years the worldwide consumption of phosphate fertilizer
has more than tripled to 33.6 million tons in the 1978-79 fertilizer year.
The demand for phosphate is expected to increase by SO percent by 1990. The
latest expansion of phosphate operations in Beaufort County will raise produc-
tion to about 1.9 million tons of marketable phosphate products annually.
Agrico's marketing territory encompasses the entire eastern two-thirds of
the country, an area accounting for about 80 percent of total U.S. fertilizer
consumption. Special emphasis is placed on the midwestern and southwestern
corn and wheat belts.
38

Improved prices for both fertilizer products and phsophate rock, combined
with record worldwide fertilizer sales volumes caused Agrico's revenues to in-
crease by 28 percent in 1980. In early 1981, Agrico formed a partnership with
a French fertilizer company which will acquire 19 percent of the North
Carolina mine. The French company will purchase 700,000 tons of the mine's
annual production.
The major concern facing fertilizer companies will be cost increases that
are anticipated, particularly for energy and raw materials, such as sulphur.
Phosphate mining and the value of phosphate -based fertilizers will be depen-
dent on the increased trend of using fertilizers, particularly a growing ex-
port market, and the fluctuating value of the dollar.
C. Impacts
Any discussion on the environmental and socioeconomic impacts of phos-
phate mining in Pamlico County must be prefaced by the fact that technologies
are changing; impacts now associated with mining activity may in the next 10-
30 years be alleviated and/or new impacts created based on new techniques.
The following discussion will concentrate on the impacts of present strip-
mining techniques and some of the impacts of slurry borehole mining that have
been discovered.
Economic
Employment --The best example for Pamlico County is to refer to the on-
going activity just to the north in Beaufort County. In 1981, employment at
the phosphate mine and chemical operations of Texasgulf in Beaufort County
totaled more than 1,500. An expansion underway, costing $180 million, will
bring the employment total to 1,700 with a payroll of more than $32 million
each year.
39

North Carolina Phosphate, to begin operations will employ about 800 work-
ers. After the construction period a gradual decline in this number will
occur. The nearly 500 employees required during full operation will earn $5.4
million per year, based on an average hourly wage of about $5.50. Indirect
jobs resulting from the project will equal as many as 600 during construction
and 320 during operation. Half of these jobs will accrue to the surrounding
counties including Pamlico County.
Research Triangle Institute (RTI) has estimated that about two to four
jobs will be generated in Beaufort, Craven, and Pamlico Counties and the port
at Morehead City for every ten jobs created at the mining site (1975).
Taxes: Texasgulf presently pays $1.3 million annually in property taxes
to Beaufort County. NCPC has estimated that, upon completion, their facility
will yield $1 million annually in property tax revenue. Land holdings of NCPC
should generate an additional $15,000 in annual taxes.
The one percent local share of sales tax that is levied by Beaufort Coun-
ty could yield $65,000 in revenues during construction and nearly $20,000
annually during operation from NCPC.
Land being held by the mining companies but not in active use is valued
at about $800/acre in Beaufort County. Improved farmland has a value of about
$2000/acre. Land being mined is valued at between $2,000 to $3,000/acre. No
mineral taxes are levied because it is difficult to show how much phosphate is
in the ground and hence place a value on it.
Intergovernmental transfers from state and federal sources to Beaufort
County slightly increase as a result of mining endeavors. Most grants are
made on a basis of county population, school enrollment, highway miles, local
taxes collected, or poverty incidence.
40

It is not clear and will not be clear until the development of the phos-
phate deposits in Pamlico County is much closer at hand where the minerals
will be processed. With large capital investments now in place in Beaufort
County, it is reasonable to assume that Texasgulf and NCPC would attempt to
utilize their existing processing plants and simply transport the minerals to
Beaufort County for processing. This of course would mean that the economic
benefit to Pamlico County would be diminished tremendously.
Social: In general, the labor force in the coastal counties is capable
of absorbing employment opportunities generated by mining companies. During
construction there may be a shortage of workers skilled in mine preparation.
Usually, when this occurs, workers outside the area are recruited.
The long-term nature of the employment situation allows for extensive
tracing programs, the skills required being within the capabilities of the
county's workforce. Particularly with any new technologies, for example bore-
hole mining, experience with equipment and technical data requires training
and most likely recruitment from out of the county.
During full operation, usually some percentage (10-20% typically) of the
workforce is hired from outside the project area. There may also be some in-
ternal migration for those workers wishing to relocate closer to the project
site.
Many relocated residents near Aurora working for Texasgulf reside in mo-
bile homes. About 20% of those surveyed by a town study team lived in mobile
homes. For those areas supporting particular project sites, it may be appro-
priate to develop alternative growth plans to help guide future residential
and commercial development. The presence of construction and mining activity
as well as additional housing may create a need for increased service in those
particular areas of the county.
41

Those areas of the county where mining interests hold property include
the northwest and northern sections. Potential mining activity to take place
in these areas would be centralized in already established offices in Beaufort
County. Some growth pressure on the surrounding area, particularly Bayboro
and Alliance, could occur.
Assuming, however, that the phosphate in Pamlico County will not be de-
veloped until after the Beaufort County resources are depleted, then little or
no population growth would occur since the present employees could easily com-
mute to the new site or sites.
Transportation: Texasgulf Corporation ships phosphate rock by barge to
Morehead City, from which point shipments are made to foreign and domestic
producers. North Carolina Phosphate Corporation will soon be following much
the same pattern. Rail service to the site is the primary means for delivery
of equipment and materials. NCPC plans construction of a rail spur off the
existing Southern Railway trackage that leads to the Texasgulf facility.
On -site road construction and some improvement of off -site roads is nec-
essary to ease the increased traffic, as some delivery of materials is made by
truck as opposed to rail. Highway 306 is the major road from Pamlico County
into Beaufort County, and the site of Texasgulf and NCPC regional offices. It
is likely that these sites will remain as central to mining activity in the
region. Highway 306 may carry many of the mining employees and much of the
materials back and forth between the two sites.
42

Water
Groundwater: Phosphate has been mined at Lee Creek in Beaufort County
since 1965 by Texasgulf. The dewatering of the Upper Castle Hayne Aquifer,
which is the major source of water for the area, is necessary to allow dry pit
mining at Lees Creek and has significantly affected the groundwater regime for
hundreds of square miles surrounding the mine. There is much concern about
the potential damage to groundwater in the Beaufort County area by pumping
very large amounts of water to allow dry pit mining. Potential damage could
incluide saltwater intrusion from the Pamlico River.
The average withdrawal from the Upper Castle Hayne Aquifer by Texasgulf
is over 60 MGD. The decline in water levels throughout a 1,400 square mile
region caused, in the early 1970s, the replacement of about 800 shallow well
pumps. TexasGulf voluntarily bore most of the associated costs.
Groundwater is moving vertically and laterally from all directions toward
the pumping center at Lee Creek. High chloride water is moving toward the
pumping center, but there's disagreement as to the rate of movement and its
impact.
The Environmental Management Commission granted a revised permit to TGI
in 1976 to withdraw a total of 67 MGD and NCPC to withdraw 35 MGD from the
Upper Castle Hayne. The total authorized maximum pumping at the operating TGI
and NCPC mine sites will be 102 MGD.
Surface Water: The action which has the most significant hydrologic
effect on surface waters is the clearing of mining blocks of about 150 acres
in preparation for actual mining. Depending on the lag time between clearing
and mining, this action will produce (1) the potential for increased runoff,
(2) increased floodflows, and (3) increased erosion.
43

Construction and use of a clay pond dike and the resultant impoundment is
done in order to dewater the waste slimes in preparation for reclamation.
Discharges from the clay pond could produce increases in nutrients, TDS, and
flotation process chemicals (fuels, oils, fatty acids). After 5-6 years the
clay pond is no longer used and the clay slurry is directed to the mined -out
pits. Water from the slurry is discharged with the depressurized water from
the mine site into nearby streams.
The mine depressurization water, pumped in order to dry out the mine
sites, varies by season in temperature, TDS, and salinity. This causes some
alteration of the water at the discharge point.
There is also a danger of water pollutants escaping from a processing
plant. Texasgulf was recently fined $6000 for discharging phosphoric acid and
sulfuric acid into the Pamlico River.
Air
Operations during site preparation and plant construction produce partic-
ulate and gaseous emissions. Road traffic, land clearing, burning of residue,
and equipment operation will combine to increase pollutant output, but these
levels should not affect nearby vegetation.
In the milling process, phosphate ore is reacted with sulphuric and phos-
phoric acids to enrich the phosphorus values of the ore and to break down the
persistent calcium and fluoride ions associated chemically with the ore. As a
result of this process, gaseous fluorides, sulphur dioxide and sulphuric acid
mists are emitted as wastes. Calcium sulphate (gypsum) is also produced and
stockpiled as a solid waste product which in conjunction with the accompnaying
gypsum waste water ponds, constitutes another source of air pollution.
44

In :March of 1982, Texasgulf was fined $37,000 by the State of North Caro-
lina for 38 violations of clean air requirements by exceeding the sulfur diox-
ide emission limitations. The complex regularly emits about 21,000 tons of
sulfur dioxide a year but had been emitting something in excess of this. The
violation was predicted by computer modeling and detected by monitoring de-
vices surrounding the plant, but the investigation was triggered when damage
to vegetation around the plant was observed. This was the largest air pollu-
tion penalty ever levied by the State and took into consideration "the gravity
of the violation, degree and extent of harm, cost of rectifying the damage and
the amount of money saved by the violator by not complying with pollution con-
trol requirements."
North Carolina Phosphate Corporation has been required by the state Divi-
sion of Air Quality to complete an extensive permitting process in order to
operate in Beaufort County. NCPC cannot add significant emissions of sulphur
dioxide in their processing because of the TGI emissions in the same air qual-
ity control region. Consequently they have had to design their plant for min-
imal emissions in order to comply with ambient air quality standards for the
region.
Radiation
A project was conducted recently at the Texasgulf site in Beaufort County
to evaluate radium 226 and radon 222 concentrations in the ground and surface
water. Phosphate deposits contain appreciable concentrations of radioactive
nuclides which originate from the decay of natural uranium in the ore. The
project studied ground and surface water in the area around the mining and
manufacturing facility. This facility has a number of high -capacity wells
which are pumped continuously to lower the water table by 200 feet to below
the level of the ore.
45

At the TGI plant, once mined, the separated phosphate rock is treated by
the "wet process" method in which the ore is reacted with sulphuric acid to
produce phosphoric acid and gympsum, a waste product. The waste gypsum is
rinsed with a weak acid and water, discharged to a slurry tank, and finally
pumped to large piles along the eastern perimeter of the plant. The slurry
water is then decanted and recirculated to the slurry tank.
Several EPA studies have indicated that there is a partitioning of uran—
ium and its decay products during the sulphuric acid reaction. Virtually all
of the uranium remains with the phosphoric acid and subsequent fertilizers,
while the major portion of the radium and subsequent daughters are separated
out in the solid waste gypsum.
The present investigation was to determine the concentration of radium
226 and radon 222 in the water supplies adjacent to the plant, upstream and
downstream of the plant in the Pamlico River, and determine the potential haz—
ard of drinking water in this area.
The results of the study indicated that the majority of the wells sampled
had only minute concentrations of radium 226 and radon 222. However, four
wells were found to yield very high concentrations, still though at a level
under the Federal Radiation Council's recommended explosure limits.
A problem in the study was that no tests could be made of radium and
radon in the area prior to the mining and milling operations. Due to the
abundance of phosphate ore in the area, high concentrations of radium and
radon may be the result of natural distribution. The state Division of Human
Resources, Radiation Protection Section, is continuing to minitor the TGI site
and has begun monitoring at the NCPC site. Their work also includes soil and
air samples, which the Division of Environmental Management ahs been assisting
with. Air sampling within the facility takes place eight hours per day.
46

Water sampling is on a semi-annual basis. There are some funding problems
though, which question the continuance of adequate monitoring and sampling at
both sites.
Aesthetics
Phosphate mining --presently, strip -mining --leaves behind a scarred land-
scape. Strip-mining peels away the topsoil and overburden removing all vege-
tation, topsoils, sands and clays which rest over the phosphate ore. Some
land reclamation programs are lessening mining's impact on the land, but re-
clamation cannot restore the land to its virgin state. The coastal wetlands,
valuable as habitat to a wildlife population, cannot be returned.
At every step of the mining process, sands, clay slimes, waste water, and
radioactive byproducts are discarded. According to the bPA, there are approx-
imately 3,250 pounds of sand tailings and 2,110 pounds of waste clay slimes
left on the average as the result of producing one ton of marketable phosphate
rock.
The sand tailings impounded will result in the creation of an area which
will be available for primary succession but will be diffcult to revegetate.
The absence of organic matter to act as a binding material and retain water
and minerals among the sand particles will result in the rapid loss of these
components by the surface layering of tailings.
The storage of clays during the initial years of mining will result in
the creation of a layer of these materials up to 25-feet thick. Due to the
drastic difference between physical and chemical properties of the clays and
the sandy soils which will be overtopped, it is doubtful whether the exact
floral communities presently occurring will ever be restored.
47

The reuse of these basin lands is generally limited to agricultural pur-
suits because of the bearing strength limits within these areas.
Wildlif e
Some of the very same problems associated with peat mining operations and
wildlife are also associated with phosphate mining. The problem of habitat
loss during site preparation and plant construction puts pressure on the wild-
life population and its diversity.
Several species on the federal list of endangered and threatened wildlife
occur in the region where NCPC and TexasGulf are situated: Southern Bald
Eagle, American Peregrine Falcon, Eastern Brown Pelican, Red Cock-aded Wood-
pecker, Bachhn's Warbler, American Alligator, Eastern Cougar, and Shortnose
Sturgeon. There are additional species threatened that are on the North Caro-
lina endangered species list.
Reclamation of mined lands will make these areas available once again for
pasturing, but these pastures will not provide the habitat requirements of
most native species of wildlife.
The extent to which native species migrate to other areas will determine
their survival.
Forestry and Agriculture
During the clearing operations preceeding any mining activity, marketable
trees are salvaged by timber companies. Unmarketable vegetation is burned in
accordance with Forest Service regulations.
Reclaimed land, as experience in Florida bears out, is suitable for tim-
ber production or grazing. With specific fertilization the land should sup-
port row crops.
48

Forest resources harvested on the NCPC property are estimated to be worth
$2.8 million. Thus far, the lands owned by Texasgulf and NCPC in the county
are minimal (apporoximately 20,000 acres) and the withdrawal of lands now in
agricultural and silvicultural use would not be great. Potentially a larger
impact would occur if other mining interests acquire interests in land in
Pamlico County.
Slurry Borehole Mining
Surface subsidence and the occurrence of tailings piles are the major po-
tential adverse environmental impacts of borehole mining operations. These
problems are being attacked by injecting the ore tailings back into the hole.
A 1980 Bureau of Mines report presents the results of a demonstration of
the technical, economic, and environmental feasibility of hydraulic borehole
mining of shallow oil sands. Ground subsidence and water quality were care-
fully monitored through site surveys.
A series of site surveys which collected information on site ground ele-
vations were documented weekly for two months. The average change in eleva-
tion was between one -quarter and one-half inch of subsidence, although some
points were found to be slightly elevated rather than depressed. It appears
that minor ground subsidence increased with time and decreased with distance
from the boreholes.
The small ground -level subsidence that occurred over these 500-ton
borehole cavities indicates that there would be significant subsidence over a
5000-ton cavity. Backfilling the cavity with the tailings produced in mining
offsets both the subsidence problem and disposal of the tailings. More than
90 percent of the sand originally mined was backfilled into the cavity.
Water quality monitoring generated inconclusive data. The chemical
composition of the water varied throughout the study. It appeared that the
49

total mineral content of the water increased slightly with time after its
contact with the oil sands during the mining process. The total dissolved
solids and chloride levels followed the same pattern. Some of the increased
concentrations of salts are attributable to evaporative losses in the slurry
pond. It is necessary to add an average of 12,000 gallons per day to the
slurry pond to make up its 200,000-gallon capacity.
Based upon the data generated thus far, it is impossible to draw any
conclusions with regard to water quality. Additional refining of the borehole
mining technique and sampling strategies are needed before wide -scale use will
occur.
50

Chapter 4
EXISTING POLICY AFFECTING PEAT HARVESTING
AND PHOSPHATE MINING
Introduction
The following sections describe existing state policy with regard to peat
and phosphate mining, and suggest problems for further consideration. A short
discussion of federal, state, and local policy making roles looks at how the
county can influence its future. Finally, three policy options are described
in more detail: environmental impact statements, taxation, and land use regu-
lation.
Until a major phosphate deposit was discovered in the state in the mid-
1960s, officials did not consider North Carolina a mining state. Consequently
little attention was paid to the strengths and weaknesses of mining taxation
and regulations. It is only recently that the scale of mining has increased
such that its impacts --economic and environmental --merit our full attention.
The next sections summarize the policy discussions that have gone on at
the the state and local levels in any attempt to look at mining, or more gen-
erally, depletion of natural resources, in the context of its increasing local
and statewide impacts.
A. Description of Policy
The Mining Act requires a permit for any land -disturbing activity that
affects one or more acres and includes one of the activities mentioned in the
Act. This broad definition of mining found in N.C. Gen Stat. §74-49(7)
51

clearly includes peat and phosphate mining. The Act provides for the protec—
tion of the surrounding environment and for reclamation of the land and water
affected by the mining operation.
Various air and water quality permits are also required. Burning
associated with clearing lands in preparation for peat mining may require a
permit. The permit is required to doi any burning in or within 500 feet of any
woodland under the protection of the Department of Natural Resources and
Community Development.
An air quality permit may be necessary for a phosphate processing plant.
The permit places emission limitations on certain air pollutants emitted by
the calciners, boilers, coal handling, and phosphate rock handling equipment.
A National Pollution Discharge Elimination System (NPDES) permit is
required for a phosphate processing plant to control the discharge of wastes
into the waterways. Permit terms may include monitoring, reporting, data
collecting, and other methods necessary to its purpose.
Phosphate mining requires federal and state dredge and fill permits to
control discharge in wetlands, estuarine waters, tidelands or marshlands.
A water use permit may also be necessary,. particularly for phosphate
mining and processing. This permit is required for any person who withdraws,
obtains, or utilizes surface water or ground water in excess of 100,000
gallons per day in an area designated as a capacity use area. The permit
approves the purpose of the withdrawal or use and may require monitoring,
reporting, and water level controls.
A fuller description of all necessary permits and existing policy
affecting peat and phosphate mining is included in the Appendix. The
following sections look closely at existing policies and identify gaps and
areas for further consideration. As the scale of both peat and phosphate
mining increases in the coastal areas, new problems are created and old ones
52

are exacerbated. State officials are taking a new look at activities on the
coast and have begun to identify policy issues needing further clarification.
Some of these issues are covered in the next section.
B. Existing Policy: Peat :Mining
Peat mining, in combination with agricultural conversion, on the coastal
plain will have the following impacts:
• elimination of existing wildlife habitats
• elimination of representative natural ecosystems, critical to the sur-
vival of native plants and animals
• deterioration of water quality and habitats of aquatic wildlife
r reduction of certain recreational opportunities, particularly hunting
and water -based recreation.
There are no state statutes for designating specific lands to be protected
from mining or other development uses, and to be preserved in natural condi-
tions. North Carolina needs to establish a state policy for its wetlands,
beginning with a thorough ecological and economic inventory. Following is a
list of needed research and possible regulations and incentives to ease the
impacts of wetland conversion.
Wildlife Considerations
• The state Department of Natural Resources and Community Development
should seek authority to designate certain areas as "critical habitat" for
officially recognized endangered or threatened species.
• The Department (NRCD) should establish standards on which to assess and
safeguard water quality necessary for aquatic wildlife (adversely affected by
nutrient, sediment, and pesticide runoff).
53

The Department should establish mitigation policies and requirements,
by which adverse changes or loss of public natural resources can .be
compensated for, avoided, or minimized.
• The Department should seek extension of the state Environmental Policy
Act to cover major projects with significatn impacts which require state
permits or licenses.
Inland Fishing Considerations
Methods of harvesting peat involve land clearing practices which are
known to affect water quality. During and after peat harvest, water runoff
rates will increase significatnly. Also, the areas where peat harvesting is
proposed are only a few feet above sea level. A third problem that may arise
is saltwater intrusion. It is possible that'saltwater intrusion may occur to
the extent as to contaminate inland freshwater areas.
• More attention should be given to vegetative cover and soil and runoff
retention practices. Minimum five-foot buffer strips along drainage ditches,
groundcover crops, and no -till cultivation practices are some suggestions for
mitigating runoff problems.
• Appropriate subsidy incentives for soil and water conservation should
be made, but sediment control practices should be compulsory both during and
after peat harvesting.
• Freshwater runoff from peat mining operations should not be discharged
into estuarine primary nursery areas. Marine Fisheries policy staff should
advise where discharges would have a minimum impact.
• Mining should be prohibited in stream valley deposits and in floodplain
peat deposits along major rivers.
54

• There should be a moratorium on peat mining in areas where the bottom
of the peat deposit lies at or below sea level until adequate environmental
safeguards are developed.
• Drainage of pocosins should be covered under the state Dredge and Fill
permitting procedure.
Monitoring and Reclamation Considerations
A full review of what constitutes approvable reclamation is needed.
Mining permit applications thus far have proposed row -crop agriculture as
reclamation, and forestry is expected to increase in popularity as an alterna-
tive. Whether freshwater or brackish impoundments ought to be part of a
reclamation plan and how to incorporate the preservation of wildlife habitat
should be examined.
• Develop a clear policy on requirements for reclamation and monitoring
of reclaimed land once the land is released from the control of the Mining
Act.
• A monitoring system of peat mining impacts needs to be established. An
applicant for a mining permit for a peat mine should be required to submit a
proposed monitoring plan as -part of the application.
• A monitoring system to measure on -site and regional impacts needs to be
established under the Department of Environmental Management or the Department
of Natural Resources and Community Development.
• A mechanism to ensure wildlife mitigation measures will be continued on
reclaimed land despite ownership changes.
55

C. Existing Policy: Phosphate Mining
Many of the same impacts associated with peat mining are also true of
phosphate mining; land clearing activities which increase the potential for
additional runoff, floodflow, and erosion problems are probably the most
severe, and these impacts become water resource problems. Other environmental
impacts of strip mining phosphate include:
• Potential damage to groundwater supplies by saltwater intrusion.
Groundwater is a major drinking water supply source.
• Violations of clean air requirements, particularly sulphur dioxide
• Elimination of existing wildlife habitats
• There is also the problem of reclamation. The land cannot be restored
to its former state. It can be, and typically is, reclaimed as agricultural
land, but the original vegetation and wildlife in most cases is lost.
Following are a list of considerations which point up some of the envi-
ronmental issues surrounding the mining of phosphate. Most of the issues men-
tioned previously with regard to peat mining are applicable to phosphate min-
ing as well.
• Although water quality is a factor in approving or denying a permit,
water supply or availability is not.
• Monitoring capabilities of the state are not sufficient for the water,
air, and radiation monitoring necessary on and off the mining site.
• There are no state statutes which protect critical or sensitive areas
from mining including waterways, watersheds, wetlands, and other areas subject
to damage by mining and major earthmoving activities.
• Reclamation plans need to be more specific, better guaranteed, and more
closely aligned with original character of land.
56

Chapter 5
NATURAL RESOURCE DEVELOPMENT POLICY
Introduction
The peat and phosphate deposits that exist in the county are likely t3 be
developed at some point in time. Peatco, a company based in Edenton, North
Carolina, has already received a permit from the state to harvest peat in the
Light Ground Pocosin. The company is presently exploring the market for
peat.
Phosphate mining interests within and outside North Carolina have shown
interest in the phosphate known to exist in the county. New mining techniques
• will increase the value of these deposits by making their extraction simpler.
In making a decision to mine these resources there are a number of trade-
offs, primarily environmental, to consider: How will peat and phosphate min-
ing affect the land, air and water resources in the county? A second concern
is one of simple economics: Will development of natural resources in the
county bring jobs and tax revenues?
The trade-offs involved in a decision of this type are continuous. The
more lands that are committed to development, the greater the impacts. The
key decision to be made is how far development should proceed.
Present competing uses of coastal lands include peat mining, agricultural
production, seafood production, silviculture, phosphate mining, recreation,
and wild land preservation. An increase in one of these uses is bound to have
• an effect on another. Increasing use of lands for agriculture and mining will
limit the amount of land available to recreation and wild land preservation
and so on.
57

This depicts some of the environmental effects the maximization of
peat mining and phosphate mining will have on the other land uses. It points
up the need for a good understanding of both the environmental and socioeco-
nomic impacts of development of coastal lands. There are a number of intan-
gible impacts large-scale land developments have on communities. These are
less easy to define and quantify. They include.the interests of future gener-
ations, community cohesion, sense of place, and generally, the social fabric
of communities.
Policy for Natural Resource Development
in Pamlico County
Pamlico County is blessed with a great many natural resources: clean
air, good agricultural land, a good water supply, forests, productive wetlands
and estuaries, varied wildlife, abundant natural beauty, and peat and phos-
phate deposits.
The economic, social and spiritual well-being of the people of the county
has depended on sustaining the quality and quantity of these resources since
the county was first inhabited.
This dependence is expected to continue, and probably to increase, as the
rising demand for food increases agriculture, aquaculture and fishing in the
county and as the rising demand for recreational facilities increases second
home development, recreational fishing and recreational boating in the
county.
The development of each of these natural resource is realted to all of
the others and can have an immediate, serious, and long-lasting impact on one
or more of the others. Impacts on the local economy can be easily measured in
fiscal or monetary terms, but impacts on the social and spiritual well-being
of the people may be of equal or even greater importance even though they are
58

difficult, if not impossible, to measure in fiscal terms.
It is the policy of Pamlico County to encourage the development of the
natural resources of the county, provided that such development will not have
a serious negative impact on other natural resources. It is especially impor-
tant that the development of a non-renewable resource does not hinder the
developmer:c or continued use of a renewable or on -going resource, such as farm
land, forest land, or the estuaries.
The development of natural resources should also make a positive contri-
bution to the economic, social and spiritual well-being of the people of the
county.
Thus, the development of the peat and phosphate deposits in the county
will be encouraged only if doing so will not hinder the development or con-
tinued use of other natural resources and will contribute to the economic,
social and spiritual well-being of the people of the county in both the near
and distant future.
Specifically this means:
1. that once the peat or phosphate is removed, every effort should be
made to leave the site in such a condition that it can be used for another
activity benefitting the county or can return as close as possible to its
natural state;
2. that the removal of water from the site should be done in a way that
will not interfere with the natural function of wetlands, estuaries and the
like;
3. that the quality and quantity of ground water should not be
affected;
4. that the quality of the air should not be adversely affected;
59

S. that the development of the resource should have a positive fiscal
impact on the county in both the short- and long-term;
6. that every effort should be made to protect the natural beauty of the
county during and after the development process.
60

Chapter 6
OPTIONS AVAILABLE TO IMPLEMENT NATURAL RESOURCE DEVELOPMENT POLICY
Introduction
Of the three levels of policy making that the county can influence --
federal, state, and local --the local level can be affected most directly.
Federal policy controls what the county can or cannot do through federally
mandated state regulations. The county's best opportunities with regard to
federal policy lie in awareness and clear understanding of what regulations
and guidelines permit. Through awareness, the county will be able to take
advantage of federal policies and use them to their best end.
A. State Policy
• State policy options and suggestions have perviously been commented on.
It is only recently that the state. has considered itself a mining state. In
the mid-1960s, when phosphate rock was discovered in Beaufort County, the
nature of the state's mineral wealth changed. Exploration and mining activ-
ity, particularly with respect to peat and phosphate, has increased consider-
ably. The state is taking a new look at previously enacted statutes and also
at what the voids in these regulations are.
The increase in peat and phosphate mining and the environmental ane eco-
nomic impacts of this development activity is forcing state officials to look
closely at threats to water quality, wildlife habitats, and wetland values.
The North Carolina Mining Act was amended by the 1981 General Assembly, and a
peat mining task force submitted its first report to NRCD in March 1981 and is
preparing to do an update this year.
61

The county can have influence in state policy making with regard to peat
and phosphate mining. One example is the "North Carolina Severance Tax Act"
(H.B. 1383). The General Assembly is now considering a severance tax pro-
posal. The county can play an active role in lobbying for its adoption (see
discussion below on severance tax).
The water quality and wildlife issues mentioned in a previous section are
issues which the state is presently working on. The county can be a part of
these discussions and strategy sessions necessary to come up with policy
options and plans. Local officials can identify issues and suggest policy
areas that need to be explored and strengthened.
B. Local Policy
The steps the county takes to protect its natural resources will be the
best insurance to influencing and guiding mining and development. Three par-
ticular tools the county might choose to use will be discussed here: the
environmental impact statement, taxation, and land use regulation.
Local Environmental Impact Statement
In 1971, the General Assembly passed the Environmental Policy Act (N.C.
Gen. Stat. §113A-1 et seq). The main thrust of the Act seems to be a require-
ment for an Environmental Impact Statement for any proposed public action,
similar to the Federal Act. However, §113A-8 allows local governments to
require an EIS from "special purpose units of government" and private devel-
opers of "major development projects." "Special purpose units of government"
are generally exempt from the state reporting requirement (§113A-9(3)) as are
k private developers not using public funds (§113A-4(2)). Thus, local govern-
ments may require an EIS from developers that the state act does not reach if
they are developing a "major development project." This term is defined in
62

§113A-9(1) as including, but not limited to, "shopping centers, subdivisions,
and other housing developments, and industrial and commercial projects. ."
The all-inclusive nature of this definition is substantially limited by an
exclusion of any project of less than two contiguous acres. The contents of
the local EIS are to conform with those of the state, which are set forth in
§113A-4(2).
The towns of Chapel Hill and Holden Beach have taken advantage of this
enabling legislation. The statements required by, as well as the applications
of, the two ordinances are quite different. The Holden Beach ordinance is
somewhat simpler and will be examined first.
The EIS required in Holden Beach must set forth the same information
required under the state act. This puts the Holden Beach ordinance in com-
• plete compliance with the enabling statute. The required factors are:
• environmental impact of the proposed action
• unavoidable adverse environmental effects
• proposed mitigation measures to minimize impact
• alternatives to the proposed action
• relation of short-term uses and long-term productivity
• any irreversible and irretrievable environmental changes involved
The ordinance includes two more examples of "major development pro.jects," but
does not exceed the statutory authority of $113A-8. The ordiance also lists
some examples of "projects significantly affecting the quality of the environ-
ment," which is not done in the state statute. A public hearing with adver-
tised notice is required on the EIS. The ordinance is enforced by making com-
• pliance with the ordinance a prerequisite for obtaining other permits.
63

The Chapel Hill ordinance is more comprehensive and arguably oversteps
the authority granted in the enabling statute. First, the two acre exclusion
in the definition of "major development project" is only applicable to resi-
dential projects. At the same time, the ordinance confines itself to the
state definition of major development project. Secondly, the ordinace
requires information not specifically mentioned in the state statute. Infor-
mation required includes:
• a description of the land and its present use along with the expected
impacts on other land within one-half mile of the development in the
following categories: traffic, stream quality, wildlife, noise pollu-
tion, impoundment of water, energy and other utility use, and other
significant impacts
• a description of impact on scenic, historical, or cultural qualities of
the town
• description of impact on wildlife, natural vegetation, erosion, and
sedimentation
• description of efforts proposed to minimize adverse impacts
• a statement reflecting intention to comply with all ordinances appli-
cable to the development
• comments from all agencies with jurisdiction or expertise in areas to
be affected by the development (apparently solicited by developer)
• description of methods proposed by developer to minimize energy con-
sumption.
Despite the "extra" requirements, the ordinance goes on to say that an EIS
prepared in accordance with state or federal requirements will be deemed ade-
quate under the ordinance. Notice of receipt of the EIS must be published,
but a public hearing is not required. The ordinance is enforced by making the
receipt of the EIS, along with the publication and a review period, prerequi-
sites to the letting of any other necessary permits or approvals. There are
several exceptions to the ordinance, most notably single family dwellings and
duplex dwellings.
64

Taxation
A business tax, severance tax, or property tax is a way for a county to
• collect revenue to pay for expanding servides. These are discussed separately
below.
Business Tax: The state has the power to levy a license tax on certain
businesses. N.C. Gen. Stat. §105-33 through §105-102.3 lists which businesses
can be taxed. Mining operations are not mentioned.
N.C. Gen. Stat. §153A-146 allows counties to impose those taxes specifi-
cally authorized by the General Assembly. Section 153A-146 then authorizes
counties to tax businesses to the extent authorized by §105-33 et seq. Mining
operations are not mentioned, so counties presently are unauthorized to levy a
business tax upon them. Legislation would be necessary for counties to impose
such a tax.
City taxation of a mining operation seems to be presently authorized if
some part of the business is carried on within city limits. Of course, relo-
cation of that business outside city limits is also a possibility.
The Legislature has authorized cities and counties to impose a priviledge
license tax on hazardous waste facilities. The environmental and protective
policies behind this effort should apply to a similar tax on mining opera-
tions.
Severance Tax: As mentioned earlier, the General Assembly is considering
a severance tax bill. The severance tax would be assessed against the gross
value of all minerals, including phosphate, peat, stone, sand, gravel, and
other products, at the time they are removed from the ground. The suggested
rate is four percent. The revenues produced from this tax could be used to
fund environmental monitoring of peat and phosphate mining. The proposed
65

four percent severance tax on the gross value of all solid minerals would have
generated $14.4 million in revenues if applied to the $360,893,000 in minerals
produced in the state in 1980 (Siceloff, 1981).
Revenues from severance taxes are used for a variety of purposes around
the nationa. In Montana, North Dakota, Utah, and Wyoming, a share of the coal
severance tax is channeled to communities where mines are under construction
but are not generating tax revenues to fudn the expanded public services they
require. Florida uses part of its 10 percent tax on phosphate for mine recla-
mation.
The state is considering new ways to strengthen the budget. A severance
tax on peat and phosphate would produce substantial returns.
Property Tax: Of the three taxes discussed, only property tax is con-
trolled at the county level. Since peat and phosphate mining interests own
such large parcels of land, the county should stand to profit on property tax
revenues --if these revenues' can offset the cost of necessary public services.
Texasgulf presently pays $1.3 million annually in property taxes to Beau-
fort County. North Carolina Phosphate Corporation anticipates that, upon com-
pletion, their facilities will yield $1 million annually in property taxes for
Beaufort County.
If, when the phosphate deposits in Pamlico County are developed, the pro-
cessing of this ore occurs outside the county, then revenues will be even less
for Pamlico County.
Average land values for land held by peat and phosphate interests for
undeveloped farmland is $800/acre. No mineral taxes are levied because of the
difficulty in determining how much phosphate is in the ground.

Land Use Regulation
A number of jurisdictions in and around North Carolina have created ordi-
nances which apply only to major developments requiring a permit, or ordi-
nances which apply to critical or sensitive lands.
Holden Beach and Chapel Hill have already been mentioned as towns which
require local environmental impact statements from developers of major devel-
opment projects.
In pursuing this a county could create regulations that would set stand-
ards for issuing a permit based on known potential impacts.
A second type of ordinance would be directed to sensitive lands. Manatee
County, in Florida, has created a Special Treatment Overlay District to,
". . . provide additional protection for specific areas of, or recources in,
the county that are especially sensitive to or subject to damage by indus-
trial, mining, or major earthmoving activities. . . ." The provisions of this
district are operated in conjunction with other zoning requirements already
applied to the property. The overlay requirements are a means of insuring
that additional attention be given to developing particular lands in a way
which is sensitive to their natural processes.
An overlay district could be used, for- example, to protect wetland areas
by limiting uses, or allowing them with certain conditions. An overlay dis-
trict protects those qualities of the land which make it attractive and use-
ful, and assure that any development will be according to what the land can
support.
67