PCS 404 Permit - text

DEPARTMENT OF THE ARMY
WILMINGTON DISTRICT,CORPS OF ENGINEERS
P.O.BOX 1890
WILMINGTON.NORTH CAROLINA 28402-1890
REPLY TO
ATTENTION OF
June 10, 2009
Regulatory Division
Action ID. 200110096
Potash Corporation of Saskatchewan Phosphate Division, Aurora Mine
Attn: Mr. Steve Beckel
1530 NC Highway 306 S
Aurora, North Carolina 27806
Dear Mr. Beckel:
Enclosed is a Department of the Army permit to discharge fill material into 3,927 acres of
jurisdictional wetlands, pursuant to Section 404 of the Clean Water Act, adjacent to the Pamlico
River and several of its tributaries located north of the town of Aurora, Beaufort County, North
Carolina. These impacts are authorized as part of the continuation of mining activities at the
existing Aurora Mine facility. The Corps is issuing this pen-nit in response to your written
request and the ensuing administrative record.
Any deviation in the authorized work will likely require modification of this permit. If a
change in the authorized work is necessary, you should promptly submit revised plans to the
Corps showing the proposed changes. You may not undertake the proposed changes until the
Corps notifies you that your permit has been modified.
Carefully read your permit. The general and special conditions are important. Your failure to
comply with these conditions could result in a violation of Federal law. Certain significant
conditions require that:
a. You must complete construction before December 31, 2045.
b. You must notify this office in advance as to when you intend to commence and
complete work.
c. You must allow representatives from this office to make periodic visits to your
worksite as deemed necessary to assure compliance with permit plans and conditions.

-2-
You should address all questions regarding this authorization to Mr. Tom Walker, at(910)
251-4631.
Sincerely,
ferson?M 4ca�ge _
Colonel, U.S. Army
District Engineer
Enclosures
Copy Furnished(with enclosures):
Chief, Source Data Unit
NOAA/National Ocean Service
ATTN: Sharon Tear N/CS261
1315 East-West Hwy., Rm 7316
Silver Spring, MD 20910-3282
Copies Furnished (with special conditions and plans):
Mr. Ronald J. Mikulak, Chief Mr. Ron Sechler
Wetlands Regulatory Section National Marine Fisheries Service
Water Management Div. Habitat Conservation Division
U.S. Environmental Protection Agency Pivers Island
61 Forsyth Street, SW Beaufort, North Carolina 28516
Atlanta, Georgia 30303
Mr. Doug Huggett
Mr. Pete Benjamin Division of Coastal Management
U.S. Fish and Wildlife Service N.C. Department of Environment
Fish and Wildlife Enhancement and Natural Resources
Post Office Box 33726 400 Commerce Avenue
Raleigh, North Carolina 27636-3726 Morehead City, North Carolina 28557

DEPARTMENT OF THE ARMY PERMIT
Permittee POTASH CORPORATION OF SASKATCHEWAN PHOSPHATE
DIVISION,AURORA MINE
Permit No. 200110096
Issuing Office CESA -RG-L
NOTE: The term"you" and its derivatives, as used in this permit,means the permittee or any future transferee. The term"this
office" refers to the appropriate district or division office of the Corps of Engineers having jurisdiction over the permitted
activity or the appropriate official of that office acting under the authority of the commanding officer.
You are authorized to perform work in accordance with the terms and conditions specified below.
Project Description: discharge fill material into 3,927 acres of Section 404 jurisdictional waters of the
U.S.
Project Location: adjacent to the Pamlico River and several of its tributaries located north of the town
of Aurora, Beaufort County,North Carolina
Permit Conditions:
General Conditions:
1. The time limit for completing the work authorized ends on December 31, 2045 If you find that you need more time
to complete the authorized activity, submit your request for a time extension to this office for consideration at least one month
before the above date is reached.
2. You must maintain the activity authorized by this permit in good condition and in conformance with the terms and
conditions of this permit. You are not relieved of this requirement if you abandon the permitted activity, although you may
make a good faith transfer to a third party in compliance with General Condition 4 below. Should you wish to cease to maintain
the authorized activity or should you desire to abandon it without a good faith transfer, you must obtain a modification of this
permit from this office,which may require restoration of the area.
3. If you discover any previously unknown historic or archeological remains while accomplishing the activity authorized by
this permit, you must immediately notify this office of what you have found. We will initiate the Federal and state coordination
required to determine if the remains warrant a recovery effort or if the site is eligible for listing in the National Register of
Historic Places.
ENG FORM 1721,Nov 86 EDITION OF SEP 82 IS OBSOLETE. (33 CFR 325(Appendix A))
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4. If you sell the property associated with this permit,you must obtain the signature of the new owner in the space provided
and forward a copy of the permit to this office to validate the transfer of this authorization.
5. If a conditioned water quality certification has been issued for your project, you must comply with the conditions specified
in the certification as special conditions to this permit. For your convenience, a copy of the certification is attached if it
contains such conditions.
6. You must allow representatives from this office to inspect the authorized activity at any time deemed necessary to ensure
that it is being or has been accomplished in accordance with the terms and conditions of your permit,
Special Conditions:
SEE ATTACHED SPECIAL CONDITIONS
Further Information:
1. Congressional Authorities: You have been authorized to undertake the activity described above pursuant to:
() Section 10 of the Rivers and Harbors Act of 1899(33 U.S.C.403).
(X) Section 404 of the Clean Water Act(33 U.S.C. 1344).
( ) Section 103 of the Marine Protection,Research and Sanctuaries Act of 1972(33 U.S.C. 1413).
2. Limits of this authorization.
a. This permit does not obviate the need to obtain other Federal, state, or local authorizations required by law.
b. This permit does not grant any property rights or exclusive privileges.
c. This permit does not authorize any injury to the property or rights of others.
d. This permit does not authorize interference with any existing or proposed Federal project.
3. Limits of Federal Liability. In issuing this permit, the Federal Government does not assume any liability for the following:
a. Damages to the permitted project or uses thereof as a result of other permitted or unpermitted activities or from natural
causes.
b. Damages to the permitted project or uses thereof as a result of current or future activities undertaken by or on behalf
of the United States in the public interest.
c. Damages to persons,property, or to other permitted or unpermitted activities or structures caused by the activity
authorized by this permit.
d. Design or construction deficiencies associated with the permitted work.
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e. Damage claims associated with any future modification, suspension,or revocation of this permit.
4. Reliance on Applicant's Data: The determination of this office that issuance of this permit is not contrary to the public
interest was made in reliance on the information you provided.
5. Reevaluation of Permit Decision. This office may reevaluate its decision on this permit at any time the circumstances
warrant. Circumstances that could require a reevaluation include,but are not limited to,the following:
a. You fail to comply with the terms and conditions of this permit.
b. The information provided by you in support of your permit application proves to have been false, incomplete,or
inaccurate(See 4 above).
c. Significant new information surfaces which this office did not consider in reaching the original public interest decision.
Such a reevaluation may result in a determination that it is appropriate to use the suspension, modification, and revocation
procedures contained in 33 CFR 325.7 or enforcement procedures such as those contained in 33 CFR 326.4 and 326.5. The
referenced enforcement procedures provide for the issuance of an administrative order requiring you to comply with the terms
and conditions of your permit and for the initiation of legal action where appropriate. You will be required to pay for any
corrective measures ordered by this office, and if you fail to comply with such directive, this office may in certain situations
(such as those specified in 33 CFR 209.170) accomplish the corrective measures by contract or otherwise and bill you for the
cost.
6. Extensions. General condition 1 establishes a time limit for the completion of the activity authorized by this permit,Unless
there are circumstances requiring either a prompt completion of the authorized activity or a reevaluation of the public interest
decision,the Corps will normally give favorable consideration to a request for an extension of this time limit.
Your signature low,as permittee,indicates that you accept and gree to comply with the terms and conditions of this permit.
(PERMITTEE) POTASH CORPORATION OF SASKATCHEWAN (DATE)
PHOSPHATE DIVISION,AURORA MINE
This permit becomes effective when the Federal official, designated to act for the Secretary of the Army,has signed below.
(DIS CT GINEER)JEFFE .RYSCAVAGE, COLONEL (DATE)
When the structures or work authorized by this permit are still in existence at the time the property is transferred,the terms and
conditions of this permit will continue to be binding on the new owner(s)of the property. To validate the transfer of this permit
and the associated liabilities associated with compliance with its terms and conditions,have the transferee sign and date below.
(TRANSFEREE) (DATE)
3 *U.S.GOVERNMENT PRINTING OFFICE:1986-717-425

SPECIAL CONDITION
Action ID No. 200110096
MINING
A) This permit authorizes mining and mine related impacts as described fully in the FEIS
within the boundary depicted in the attached maps labeled"Modified Alt L—NCPC "
dated May 28,2009 and "Modified Alt L—Bonnerton"and"Modified Alt L—South
of 33", as presented May 18, 2009. All work authorized by this permit must be
performed in strict compliance with these attached plans, which are a part of this
permit. Any modification to these plans must be approved by the U.S. Army Corps
of Engineers (USACE)prior to implementation.
B) Within 1. year of the issuance date of this permit, the Permittee shall demarcate the
outer limits of disturbance on the NCPC tract by establishing a cleared line at least 10
feet wide and not to exceed 40 feet wide along the Impact Boundary as identified in
the attached map labeled "Modified Alt L—NCPC "as presented May 28, 2009.
Additionally, the Permittee shall, within 1 year of the issuance of this permit work
with the Corps to identify locations and establish permanent monuments identified
with GPS coordinates to further demarcate this boundary on the NCPC Tract. No less
than 1 year prior to relocating any mine related activity to the Bonnerton or S33
Tracts, the Permittee shall undertake identical actions within these tracts utilizing the
information provided on the"Modified Alt L—Bonnerton" and "Modified Alt L—
South of 33", as presented May 18, 2009, respectively. This will facilitate
compliance monitoring by establishing long-term reference points.
C) Except as authorized by this permit or any USACE approved modification to this
permit, no excavation, fill or mechanized land-clearing activities shall take place at
any time in the construction or maintenance of this project,within waters or wetlands.
This permit does not authorize temporary placement or double handling of excavated
or fill material within waters or wetlands outside the permitted area. This prohibition
applies to all borrow and fill activities connected with this project.
D) Except as specified in the plans attached to this permit, no excavation, fill or
mechanized land-clearing activities shall take place at any time in the construction or
maintenance of this project, in such a manner as to impair normal flows and
circulation patterns within waters or wetlands or to reduce the reach of waters or
wetlands.
E) Figure 2 of the Record of Decision(ROD) included and incorporated here by
reference depicts approximate timing of the requirement for major pre-mining, land
manipulation and clearing impacts and is incorporated here by reference. Table 3 of
the ROD included and incorporated here by reference lists those impacts and the
years in which they will occur. These yearly figures are estimates. Actual timing and
area may be in part determined by several factors including but not limited to site and
equipment constraints, weather, and economics. However,to ensure that temporal

losses are minimized to the extent practicable, the Permittee shall not undertake major
land-clearing and/or land manipulating activities within any area sooner than 1 year
prior to the dates indicated on this figure. For example, major land clearing and
manipulation activities within the block labeled 2012-2013 may not begin any sooner
than January 1, 2011.
RECLAMATION
F) The Permittee shall undertake full reclamation of all areas mined under this
authorization as described in Section 4.3 of the EIS. This includes reestablishment of
varied topography and drainage ways. Figure 3 of the ROD included and
incorporated here by reference indicates the required completion date for the capping
and successful vegetation of mine reclamation areas. To demonstrate adherence to
this schedule, the Permittee shall submit to the Corps an annual summary detailing all
reclamation efforts complete within the previous year and indicating the degree of
completeness of each reclamation area. Any deviation from the reclamation schedule
will be addressed in these reports and the report shall include an explanation for the
deviation and proposed remedial action.
G) The Permittee shall cap all mined areas that are reclaimed with the gypsum-clay
blend process materials. The goal of the cap will be a minimum 3-foot thick cap of
overburden material (similar to background soils from the region) over 100%of the
blend areas. Minimal acceptable performance standards in achieving this cap are as
follows: 70% of the total surface area with a minimum of 3-foot cap; 25% of the total
surface area with a minimum of 2-foot cap; 5% of the total surface area unspecified.
H) Following successful completion of the capping requirements within each
reclamation area,the Permittee shall submit an as-built report including final
topographical surveys for the reclamation areas. This report shall contain final cap
depth and coverage information. This report shall further include an explanation of
site development that will minimize erosion, eliminate contaminant transportation
from the clay/gypsum blend through any waterway or drainage area, and facilitate the
development of a mature vegetated riparian buffer. Finally, this report shall include
information on surface water retention within the reclamation area and flows within
and from the reclamation area.
1) To minimize temporal impacts and accelerate the return of watershed functions
within the reclamation areas, the Permittee shall to the extent appropriate and
practicable apply an average of 1-foot of topsoil cover to the reclaimed areas utilizing
the topsoil removed prior to site mining. This topsoil addition should be concentrated
within and around areas of surface water flow and/or retention.
J) To the extent appropriate and practicable, upland portions of the reclamation area
shall be replanted, in longleaf pine(Pinus palustris) and wetland areas shall be
replanted in bald cypress (Taxodium distichum) and/or Atlantic white cedar
(Chamaecyparis thyoides) if Atlantic white cedar is shown to do well on the
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reclamation sites. It is suggested that the Permittee work with the Corps, the USFWS
and any other interested parties to determine growth and survivability of these and
other species utilizing areas currently being reclaimed under the previous permit
action.
K) Within 2 years of the issuance of this permit, the Permittee shall work with the Corps
and NCDWQ to develop a plan to monitor the quality of water discharged from the
reclamation areas into the surrounding watersheds. The Permittee shall seek input
from all appropriate and interested agencies including but not limited to EPA,
USFWS,NFMS, NCWRC,NCDMF,NCDCM and NCDLR in developing this
monitoring plan. This plan shall include monitoring of radionuclides, total and
dissolved phosphorus, nitrate nitrogen, ammonia nitrogen,particulate nitrogen,
dissolved Kjeldahl nitrogen, and dissolved and particulate organic carbon. Data
collected will be used to manage water within the reclamation areas to optimize both
the amount and quality of those waters being released. It is suggested that the
applicant initiate pilot studies in the areas currently being reclaimed.
MITIGATION
L) Compensatory mitigation identified in the document entitled "Compensatory
Section 404/401 Mitigation Plan: Comprehensive Approach" as presented in
Appendix I of the HIS shall be accomplished pursuant to that Plan and/or any
subsequent Corps approved modification or amendment. Construction and
monitoring of each site shall be conducted according to each site-specific
mitigation plan and the schedule presented in Table 3 of the ROD included
and incorporated here by reference.
M) Within one year of the issuance of this permit, the Permittee shall cause to be
recorded, a preservation mechanism acceptable to the Corps for the permanent
protection of the area identified for preservation in the"South Creek
Corridor"plan.
N) Table 3 of the ROD lists the impacts as they would occur during 2-year
timeframes and is included by reference in Condition"E" above. By
November 1"of the year preceding the permitted impact, the Permittee shall
submit to the Corps and NCDWQ, a mitigation ledger demonstrating that all
mitigation work is complete as described in the mitigation plan and pursuant
to the identified timetable. This ledger will be used to determine whether
sufficient mitigation is available for impacts occurring over the next 2-year
timeframe. For Example,by November 1" 2009, the Permittee shall submit a
ledger demonstrating that sufficient mitigation for impacts occurring during
the 2010—2011 timeframe(526.56 ae)is completed. Should the ledger
indicate that insufficient mitigation exists to compensate for the next 2-year
timeframe, the Permittee shall work with the Corps to develop a strategy to
ensure that the mitigation requirement is satisfactorily met prior to those
impacts occurring.
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O) The Permittee shall submit yearly monitoring reports for each mitigation site.
Monitoring reports will be submitted by the dates specified within each site-
specific mitigation plan. Monitoring will continue until such time as the
Corps deems the mitigation site successful and confirms in writing that
monitoring maybe discontinued.
P) Once compensatory mitigation sites have been deemed successful and the
Corps has agreed in writing that monitoring may cease, the Permittee shall,
within one year of the date of that correspondence, cause to be recorded an
acceptable preservation mechanism ensuring the permanent protection of all
mitigation sites.
MONITORING
Q) As required by the State Water Quality Certification, the Permittee shall work
with the Corps and the N.C. Division of Water Quality to establish a
monitoring plan for groundwater in and around mine and reclamation areas.
At a minimum, this plan shall include sufficient monitoring within and
surrounding the reclamation areas to ensure that heavy metal/toxic pollutants
including cadmium and radionuclides are not entering the groundwater. The
monitoring plan shall also include nitrate nitrogen, sulfate, chloride, total
phoshorus, sodium, TDS, and pH. It is suggested that this monitoring
commence with monthly samples until such time as the NCDWQ and the
Corps in consultation with all interested and appropriate agencies determines
sufficient baseline information exists. After such time, samples will be
collected and analyzed every 3 months until blend material is introduced to
the reclamation area. Following introduction of the blend material to the
reclamation site,monthly sampling will recommence until such time as the
NCDWQ and the Corps in consultation with all interested and appropriate
agencies determines another sampling timeframe is appropriate. Yearly
results of this monitoring shall be reported to the Corps and NCDWQ no later
than January 31 of the year following data collection. The permittee and/or
the Corps will make these reports available in whole or in summary to any
interested party. If increases in the levels of any sampled substance are
observed for more than 1 sampling occurrence in any given year, or for more
than 1 year, the permittee shall include in the yearly report, a plan for
mitigating the effect or satisfactory justification as to why no action is
necessary. If the Corps, in consultation with other agencies, including but not
limited to NCDWQ,NCDLR and EPA, determines that the current
reclamation practices are causing an unacceptable adverse impact to
groundwater, the DE may modify, suspend or revoke the permit.
R) Prior to introducing the gypsum/clay blend in the reclamation of any mined
area covered by this permit, the Permittee shall submit to the Corps and
NCDWQ a remediation strategy in anticipation of the possibility of heavy
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metal or radionuclide contamination of groundwater or surface tributaries that
drain or are adjacent to mined areas. That strategy will be made available for
public review.
S) In concert with the monitoring requirements contained in the Water Quality
Certification, the Permittee shall develop a Plan of Study to address the effects
of the reduction in headwater wetlands on the utilization of Porters Creek,
Tooley Creek, Jacobs Creek, Drinkwater Creek, and Jacks Creek as nursery
areas by resident fish and appropriate invertebrate species. This plan shall be
submitted to the Corps and NCDWQ for approval within 1 year of the
issuance of this permit. At a minimum,the plan shall address the following
issues:
1) Has mining altered the amount or timing of water flows within the creeks?
Data collection may include:
i) Continuous water level recorders to measure flow
ii) Rain gauges to measure local water input
iii) Groundwater wells to measure input to the creeks
iv) Semi-continuous salinity monitoring
v) Periodic DO monitoring(continuously monitored for several days at
strategic times of year)
2) Has mining altered the geomorphic or vegetative character of the creeks?
Data collection may include:
i) Annual aerial photography to determine creek position, length, width,
sinuosity
ii) Annual cross sectional surveys of each creek at established locations
iii) Annual sediment characterization
iv) Annual vegetation surveys along creeks
v) Spring and fall sediment surface chlorophylls or organic content in
vegetation zone.
vi) Spring and fall location of flocculation zones with each creek.
3) Has mining altered the forage base of the creeks? Data collection may
include:
i) Spring and fall benthic cores to sample macroinfauna.
ii) Spring and fall benthic grabs focused upon bivalves, such as Rangia
sp.
iii) Periodic sampling for pelagic species such as grass shrimp,blue crabs,
and small forage fish. Sampling gears would be chosen to reflect
ontogenetic shifts in creek usage.
4) Has mining altered the use of the creeks by managed fish? Data collection
may include periodic sampling for species managed under the Magnuson-
Stevens Fishery Conservation Management Act. Sampling would occur
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during appropriate times of year and gears would be chosen to reflect
ontogenetic shifts in creek usage.
5) Has mining increased contaminate levels within creek sediments to levels
that could impact fish or invertebrates? Data collection may include
annual sediment and water column sampling for metals, including
cadmium, mercury, silver, copper, and arsenic. If elevated levels are
detected, the availability and uptake by appropriate aquatic species (e.g.,
Rangia sp., blue crabs) should measured using appropriate bioassay
techniques.
6) Has mining altered overall water quality within creeks? Water quality
parameters analyzed will include: Salinity, Temperature, Dissolved
Oxygen, pH, Secchi depth, Turbidity, Chlorophyll a, Dissolved
orthophosphate phosphorus, Total dissolved phosphorus, Particulate
phosphorus, Nitrate nitrogen, Ammonia nitrogen, particulate nitrogen, and
Dissolved Kjeldahl nitrogen.
T) Monitoring under the Plan of Study referenced in condition"S" above shall
commence immediately upon the Plan's approval by the Corps and NCDWQ.
Monitoring shall continue for 10 years following the completion of all
reclamation work within the headwaters of the subject creeks unless the
Corps, in consultation with the appropriate resource agencies agrees that
monitoring can be discontinued.
REPORTING AND ADAPTIVE MANAGEMENT
U) The Permittee shall within 6 months of the issuance date of this permit, work
with the Corps and NCDWQ to establish an independent multidisciplinary
panel of researchers qualified in the subject matter to be examined (Science
Panel). In identifying potential participants for this Panel,the Permittee shall
seek input from all interested and appropriate resource agencies including but
not limited to EPA,NMFS, USFWS,NCWRC,NCDMF, and the appropriate
permitting agencies including NCDCM, NCDLR. The panel shall be
comprised of between 2 and 5 members. The members of this panel shall be
given opportunity to provide input and recommendations on the monitoring
required by conditions "K"and"S"above including research design,
reference site selection, sampling stations, schedules, and methods; laboratory
methods; data management and analysis; and quality control and quality
assurance. Any input supplied by members of this panel will be presented to
the Corps and NCDWQ and will be incorporated as appropriate into the
preparation of the Plan of Study referenced in condition"S". Members of this
panel will also be given the opportunity to oversee all research conducted
toward fulfillment of conditions "K"and "S".
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V) The Permittee shall be responsible for fully implementing the approved Plan
of Study referenced in conditions "S", "T"and "U"above. Annual summaries
of all data collected in compliance with conditions "K" and"S" shall be
presented to the Corps,NCDWQ and all members of the Science Panel on or
before May 1 of the year following collection. The Permittee and/or the
Corps will make these reports available in whole or in summary to any
interested party.
W)The Permittee shall coordinate and facilitate an annual meeting of the Science
Panel, the Corps,NCDWQ, and all other interested state and federal agencies
including but not limited to EPA,NMFS, USFWS,NCWRC, NCDMF,
NCDCM,NCDLR. This meeting shall occur no later than July 30 of each
year. The purpose of this meeting will be to allow the members of the Science
Panel to provide input to the agencies on any observed trends in parameters
measured and general discussions on whether direct and indirect impacts from
mining and benefits from the compensatory mitigation appear to be in
accordance with expectations at the time of permitting. Members of the
Science Panel shall also be given the opportunity to provide any
recommendations for management or further study. The proceedings of this
meeting including data summaries,reports, presentations and any conclusions
of the group will be made available in whole or in summary to any interested
party. The Corps will fully consider all information presented by the Science
Panel as well as comments from state and federal agencies and all other
parties supplying input to determine if corrective actions or permit
modifications are needed. If substantive changes to the mine plan,
compensatory mitigation plan or monitoring plan are made, the Corps will
announce such change by Public Notice and allow for public comment.
X) At appropriate intervals to be decided by the Corps after input from the
Science Panel (eg. 3 to 5 years)beginning from the date of permit issuance,
members of the panel shall be given the opportunity to review the monitoring
methods, sampling locations, parameters analyzed, and other elements of
monitoring protocol to determine if modifications to the plan are appropriate.
All data reviewed by the panel shall be made available to the public.
MISCELLANEOUS
Y) The Permittee shall advise the Corps in writing prior to beginning the work
authorized by this permit and again upon completion of the work authorized
by this permit.
Z) The Permittee shall require its contractors and/or agents to comply with the
terms and conditions of this permit in the construction and maintenance of this
project, and shall provide each of its contractors and/or agents associated with
the construction or maintenance of this project with a copy of this permit. A
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copy of this permit,including all conditions, shall be available at the project
site during construction and maintenance of this project.
AA) The Permittee shall employ all sedimentation and erosion control
measures necessary to prevent an increase in sedimentation or turbidity within
waters and wetlands outside the permit area. This shall include,but is not
limited to, the immediate installation of silt fencing or similar appropriate
devices around all areas subject to soil disturbance or the movement of
earthen fill, and the immediate stabilization of all disturbed areas.
Additionally, the project must remain in full compliance with all aspects of
the Sedimentation Pollution Control Act of 1973 (North Carolina General
Statutes Chapter 113A Article 4).
BB) The Pennittee, upon receipt of a notice of revocation of this permit or
upon its expiration before completion of the work will, without expense to the
United States and in such time and manner as the Secretary of the Anny or his
authorized representative may direct,restore the water or wetland to an
acceptable condition.
CC) Violations of these conditions or violations of Section 404 of the Clean
Water Act or Section 10 of the Rivers and Harbors Act must be reported in
writing to the Wilmington District U.S. Army Corps of Engineers within 24
hours of the Permittee's discovery of the violation.
DD) Wetland Avoidance/Minimization Areas: The Permittee shall avoid the
remaining 2,455 acres of waters of the United States within the 15,100 acre
project area. These natural wetland areas were avoided as part of the permit
application review process and therefore will not be disturbed by any
dredging, filling,mechanized land clearing, agricultural activities, or other
construction work whatsoever. The Corps reserves the right to deny review of
any requests for future impacts to these natural wetland areas.
EE) The Permittee shall not begin work authorized by this permit until 10 days
following the date I provide the record of decision to EPA. I expect to
provide the ROD to EPA on June 4, 2009; however, the Permittee shall verify
that date prior to beginning work.
FF) Within one year of the date of this permit, the Permittee shall cause to be
recorded a conservation instrument acceptable to the Corps for the permanent
preservation of the areas identified as conservation easements on maps
entitled "Conservation Easement—Tooley Creek Modified Alternative L—
NCPC; " "Conservation Easement—Jacobs Creek Modified Alternative L—
NCPC;""Conservation Easement—Drinkwater Creek Modified Alternative L
—NCPC and "Conservation Easement—Porter Creek Modified Alt L—
Bonnerton" all dated May 18,2009 and the map entitled "Conservation
Easement—Jacks Creek Modified Alternative L—NCPC;"dated May 28,
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2009. In addition the Permittee shall place a permanent mining restriction
over the area shown in the map entitled "Permanent Deed Restriction
Prohibiting Mining Cypress Run Modified Alt L- South of 33"dated May 18,
2009. The referenced maps are attached hereto.
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January 15. 2OO8
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Environmental Affairs
PCS Phosphate Company, Inc.
P.O. Box 48
Aurora, NC278O8
Re: PC3 Phosphate Mine Expansion. Beaufort C
DVV[2 #20D8-0R68. varyion2A U8ACEAciion |[l No� 200110096
MODIFIED APPROVAL pf4O1 Water Quality Certification with Additional Conditions
Dear Mr. Smith:
Attached hereto is copy of Certification No, 3771 issued to PCG Phosphate Company, Inc. of
Aurora, NC dated January 15` 2009. In addbion, you must get any other federal, state o/ local
permits before you proceed with your project iodud|ng (butnot |imitedto) 8oUdVVaate.
Sediment and Erosion Control, 8tonnvva(er, Dom 8afety.'Mining. Non-discharge and Water
Supply Watershed regulations. This Certification completely replaces one issued ho you on
December 8. 2O08.
|fvve can b* of further assistance, do not hesitate to contact us,
l~�//y ��---
o|eenHy��Uins
CHS8rd
Attachments: Certificate ofCompletion '
cc: Mr. Tom Walker, U,S, Army Corps of Engineers, /\sheville Regulatory Field Office
Dave Lekonn, US Army Corps ofEngineers, Washington Regulatory Field DtOoe
Scott McLendon, Wilmington District, UBACOE
Kyle Barnes, DVVQ. Washington Reg|onal.Offir*
Al Hodge` DVVQ. VVashingtnn Regional Office
DLR Washington Regional Office
File Copy
Matt K8aMhevvn' DVV(] Wetlands and Gtorn1vvahar Branch
CyndiKaro(y. DVV0
John Payne, NC Attorney General's [>ffioe. Environmental Division
Mike 8ohafe|e. NC Natural Heritage Program

,
P[s Pb0opb*cCmupun7. (nc
P"@e2n/8
Juoumy l5. 20O9
Linda Pearsall, NC Natural Heritage Program
Jimmie Overton, DVVQ
Jeff Furness, PC8Phosphate
Stephen Rynao, NC Division of Coastal Management
Shannon Deatnn, NC Wildlife Resources Commission
Derb Carter, Southern Environmental Law Center
Geoffrey Gisler, Southern Environmental Law Center
Heather Jacobs, Pamlico Tar River Foundation
Sean McKenna, NC Division of Marine Fisheries
Eric Kutz' OVVO
Tammy HiU, OVVC>
Becky Fox, US Environmental Protection Agency
Tom VVe|born, U8 Environmental PrutodionAgonoy — Region 4At|ontu
Melba McGee, OENR
Dee Freeman, OENR
Co|ean GuUiny, DVVC)
ChuokVVaki|d. DVV{}
Paul Ravls, DVVC>
Ted Strong, Washington Doily News
Susan Massengale, DVVQ
Julia Berger, CZR
George Houoe, BFooks, Pjeroe, McLendon, Humphrey and Leonard. LLP
J<nn StanfiU, EEP
Mary Penny Thompoon, OENR
Susan Maasengo|e, DVVC)
Ann Oeaton. NC Division of Marine Fisheries
John Henneuay, DVVO
Ted 8hong, Washington Daily News
Wade Rawlins, News and Observer
Filename: 20080088v2PCSPhosphabe/Beaufort\401 modified

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NORTH CAROUN/\ 4O? WATER QUALITY CERTIFICATION
THIS CERTIFICATION is issued in conformity with the requirements of Section 401 Public Laws
92-500 and 95-217 of the United States and isubject to the North Carolina Division of Water
(Jue|i1y (OVV[3) Regulations in 15 NCAC2H. Section .O5ODto PCS Phosphate Company, Inc. of
Aurora, NC based oDan application to fill 4,124 acres of jurisdictional vvet|ands. 29.288 |inearfaet
of streams, 19 acres of ponds and 55.14 acres of stream buffers in the Pamlico River Basin,
associated with the expansion of PCS Phosphate's mining operation including the relocation of
Highvvay2D6 and Bandy Landing Road in Beaufort County, North Coro|ina, pursuant to an
application filed on the 22nd day nfMay of2UO8 through the published Public Notice by the US
Army Corps of Engineers, and in additional correspondence received September 5, 2008 (dated
September 4. 2OO8). November 3. 2UQ8 (received November 5. 20DB). December 1B` 2OO8
(received Oecember22. 2008) and proposed impact maps doted January G. 2009�
The application and supporting documentation provide adequate assurance that the proposed
work will not result ina violation u{applicable Water Quality Standards and discharge
guidelines. Therefore, the State of North Carolina certifies that this activity will not violate the
applicable portions of Sections 301. 302. 3O3. 308. 307ofPLB2-50D and PL85'217iT
conducted in accordance with the application, the supporting documentation, the additional '
correspondence noted above and conditions hereinafter set forth.
This approval is only valid for the purpose and design submitted in the application materials,
additional correspondence and as described (n the Public Notice. |f the property ia sold after the
Certification is granted, the new owner must be given a copy of the Certification and approval
letter and is thereby responsible for complying with all conditions of this Certification, Any new
owner must notify the Division and request the Certification be issued in their name, Should
vvedaOd` buffer orstream fill be requested in the future, additional compensatory mitigation may
be required as described in15AWCAC2H �O6OG (h) (S) and (7). |f any plan revisions from the
approved site plan result in a change in stream, buffer or wetland impact or an increase in
impervious surfaces, the DWQ shall be notified in writing and a new application for 401
Certification may Ue required and g nnodified4O1 Certification may berequired. For this
approval to be valid, compliance with all the conditions listed below is required.
Conditions ofCertification:
1. Impacts Approved
The following impacts are hereby approved as long as all of the other specific and
general conditions nf this Certification are met, No other impacts are approved including
incidental impacts other than listed in this table, Also, please note that these impacts
are those approved by DWQ and are only a portion,of the impacts that were originally
applied for and listed in the Public Notice. These impacts are depicted un maps entitled
`PCS Phosphate Mine Continuation — Modified Alt. L— NPCS. 8onn*don and South of
33 Proposed Impact" dated January 0. 20D8,

I?C'S 1'hosl+L<ate C onipmi,; Inc.
1)g4e I of
__..._..........
Approved
Amount�I pp ( Plan Location or Reference �
Streams 25,727 feet Final E1S, page e as well as
June 6, 2008 and December 1
_ 1 19, 2008 submittals to DWQ
j A04/CAMA Wetlands ' 3,953 acres Final EIS, page e as well as
I I June 6, 2008 and December
19 2008 submittals to DWQ J
Waters 19 acres Final EIS, page e as well as
June 6, 2008 and December
19, 2008 submittals to DWQ
Buffers 47.87 acres Final EIS, page e as well as
June 6, 2008 and December
19, 2008 submittals to DWQ
......................_.................,...........,. _._... �......_.
Sediment and Erosion Control:
2. Erosion and sediment control practices must be in full compliance with all specifications
governing the proper design, installation and operation and maintenance of such Best
Management Practices in order to protect surface waters standards:
a. The erosion and sediment control measures for the project must be designed,
installed, operated, and maintained in accordance with the most recent version of the
North Carolina Sediment and Erosion Control Planning and Design Manual.
b. The design, installation, operation, and maintenance of the sediment and erosion
control measures must be such that they equal, of exceed, the requirements
specified in the most recent version of the North Carolina Sediment and Erosion
Control Manual. The devices shall be maintained on all construction sites, borrow
sites, and waste pile (spoil) projects, including contractor-owned or leased borrow
pits associated with the project,
c. For borrow pit sites, the erosion and sediment control measures must be designed,
installed, operated, and maintained in accordance with the most recent version of the
North Carolina Surface Mining Manual.
d. The reclamation measures and implementation must comply with the reclamation in
accordance with the requirements of the Sedimentation Pollution Control Act or
Mining ,Act of 1971 (as amended)_
3. No waste, spoil, solids, or fill of any kind shall occur in wetlands, waters, or riparian areas
beyond the footprint of the impacts depicted in the 404/401 Permit Application. All
construction activities, including the design, installation, operation, and maintenance of
sediment and erosion control Best Management Practices, shall be performed so that no
violations of state water quality standards, statutes, or rules occur.
4. Sediment and erosion control measures shall not be placed in wetlands or waters without
prior approval by the Division. If placement of sediment and erosion control devices in
wetlands and waters is unavoidable, design and placement of temporary erosion control
measures shall not be conducted in a manner that may result in disequilibrium of wetlands
or stream beds or banks, adjacent to or upstream and down stream of the above
structures_ All sediment and erosion control devices shall be removed and the natural

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grade restored within two (2) months of the date that the Division of Land Re-so rcesor
locally delegated program has released the project.
Continuina .
5, PCS Phosphate Company, Inc. shall conduct construction activities in a manner
consistent with State water quality standards (including any requirements resulting from
compliance with section 303(d) of the Clean Water Act), the 401 Water Quality
Certification rules (I 5A NCAC 2H .0500) and any other appropriate requirements of
State law and federal law. |f the Division determines that such standards or laws are not
. being nnei (including the failure to sustain a designated or achieved use) or that 8iotn or
federal law io being violated, or that further conditions are necessary toassure
compliance, the Division may reevaluate and modify this Certification toinclude
conditions appropriate to assure cornpli2nce with such standards and requirements in
accordance with 15A NOAC 2H .8507(d). Before modifying the Certification. the Division
shall notify PCS Phosphate Company, Inc. and the US Army Corps of Engineers,
provide public notice in accordance with 15ANC C2H,05O3andprovideopportunityfor
public hearing in accordance with 15A NCAC 21-1 05O4 Any new orrevised conditions
shall be provided to PCG Phosphate Company. Inc, in vvhting, ahm!| be provided to the
United States Army Corps of Engineers for reference in any Permit issued pursuant to
Section 404 of the Clean Water Act, and shall also become conditions of the 404 Permit
for the project. This condition is intended to conform with the provisions nf15ANCAC
2H .0507 /d\.
__-~~^~-~:
6. Wetland and stream mitigation shall be done as follows and in accordance with mitigation as
approved by the U8 Army Corps of Engineers, DVV(] shall be copied on all draft mitigation
plans and copied on all annual reporting on mitigation.success. |n addition, buffer mitigation
shall be done in accordance with condition 7 below. In addition, DVVC} shall be copied on a
final accounting of the amount and typo of proposed:wetland, stream and buffer mitigation
within SO days of the issuance of the 404 Permit from the U8 Army Corps of Engineers, Any
rn|tiQetiuD done outside the 8-digit HUCvVhere PCG is located should follow the guidance for
out of HUC mitigation as described in "Guidance on the Use of Compensatory Mitigation in
Adjacent Cataloging Units" dated May 20. 2005 or its update by DVVC>. Conservation
easements Or similar mechanisms to protect these mitigation sites shall be recorded on all
mitigation sites to the written satisfaction of the US Army {|urpn of Engineers,
7, Buffer mitigation shall be conducted by PCS Phosphate at those mitigation sites with
dpohaD buffer credit which total about 24.4 acres of buffer credit, If the Environmental
MaD8g8OleD1 CO0r0is$i0D approves a flexible buffer mitigation pr0gngn0. then PCS
Phosphate may submit a list and description of those nheo to OVVC) for written approval. If
no additional riparian buffer mitigation sites and no flexible buffer mitigation sites are
approved by DVVO and/or the NC Environmental Management Commission, then
disturbance of buffers in the NCPC' Bonnerton or South of33 tracts shall not be done
beyond the Urnity of the 2014 impact area shown onPC8' Project Impact Schedule Year
2008'2016 (generally south of OhnkwuterCrnek) (mre Attachment One). DVVQ shall be
copied on all buffer mitigation site plans and written approval from DWQ is required for these
plans before planting or land grading occurs.

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8 PortarCreokenhancemont—Additionm! vvrittenapprovo| iup*quinadfromDVVQforavvet|and
enhancement and gpoenn restoration plan as well as a monitoring plan for the stream,
headwater forest and hardwood f|2d at the upper end of Porter Creek. This plan shall
include plugging or filling the existing ditch in order to reestablish surface Onvv into the
wetland and stream channel, DVVO acknowledges vvetond functional uplift for the 3.4 acre
hardwood flat that iu located between the stream and existing ditch and will count 17 acres
of functional uplift of these non-riparian vvaUmnds in order to account for DVVCJ~u mitigation
requirement in 154 NCAC 2H �0508 (h)(8). Stream:mitigation credits are also available for
the restoration of Oovv into the existing channel with appropriate monitoring and wetland
mitigation for the functional uplift of the headwater forest if additional analysis documents
that uplift.
Additional Minimization of imoact�
Q Hardwood Flat Avoidance and Minimization — Impact to the 135 acre ("135 A^ on
Attachment Two) portion, the 58 acre (" 58 /\" on Attachment Two) portion and the 20 acre
secondary connection between these two locations (^20 acre connect" on Attachment Two)
of the Bunnerton Road Non-Rivorine Wet Hardwood Forest as depicted on Exhibit of the
letter dated October2O. 2008 from George House of Brooks, Pierce, McLendon, Humphrey
and Leonmnd. LLp to Paul Rawls of the NC Division nf Water Quality shall he avoided and
the area not mined or cleared since this wetland is e "wetland of eXoopbono\ state or
national ecological significance" in accordance with 15A NCAC 2H .0506(e) except that a
1,145 foot wide mining and utility corridor is allowed in the narrowest part of the Bonnerton
Road Non-Riverine Wet Hardwood Forest. Mining is also allowed in the northeast triangle of
"58A~ VVHR area as outlined in exhibit 14 o/ PC8's December 18. 2008 letter, In order to
protect the uses of this Non'Rivohno VVn( Hardwood Forest wetland that will not be mined, a
conservation easement shall be placed on the wetland and restored mining and utility
corridor to preclude impacts including mining, logging and any other disturbance of the
vegetation or soils that would result in its de|ia1ing as a state or nationally significant wetland
area, This conservation easement shall be sent to DVV{} within 80 days o[ the issuance of
the 404 Permit and the Division must review and approve this easement before it is
reoorded. Eventual donation to a |000/ (and 1nysi or similar organization is acceptable to
DVVQ with DVV[J`s written approval.
The exact location of this 1,145 foot wide mining corridor shall be submitted to DWQ and the
Corps uf Engineers for written approval. A detailed stnadgraphy study shall be done onboth
sides and throughout the area to be mined in order�to determine the pnaaenoe, extent and
pernnabUity of any aquitardsend equidudeu (rnain| clay-based) within the mining corridor,
A plan for restoration of each of these aqu}tards and oquio|udau shall be included with the
nevegetehon plan in order to ensure that pre-mining hydrology is reestablished in the mining
corridor. Additional written approval is needed from DVVC] before this otnad8raphic study is
done or restoration is initiated. Groundwater monitoring shall be done before, during and
after mining and restoration for at least 10 years post-mining in order to ensure that
restoration has established reference hydrology for this site, In addition, B roo|a0mhoO and
re»ngeha0on plan for the mining corridor shall be submitted to DVVC) for written approval,
The reclamation plan for the mining corridor shall include the installation of appropriate
topsoil on the site within the rooting zone of the restored hardwood f|at. The width of the
reclamation zone shall ensure that a continuous hardwood flat is restored to reconnect the
two undisturbed hardwood flats with a width similar to the width of the remnant, undisturbed
hardwood flats, ReveQetaUnnsha|| be done with native tree species. The mining corridor
shall be restored and replanted within ten (10) years of the initiation of mining preparation

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for the area. DVVO aheU be copied on e letter once that mining preparation begins on the
mining corridor in order to establish this ten year clock.
10, Additiong| minimization ufappx, 3 acres ofwe8and impact shall be provided for the NCPC
tract an depicted on the letter from PC8 Phosphate dated November 3. 2008 to John
Qorney of the NC Division of Water Quality.
11, South of 33 tract— The impact boundaries for the South of 33 tract shall be as outlined in an
email from Mr, Tom Walker ofthe US Army Corps of Engineers doted August 19. 2008
(fnmvandadtoW1r. JnhnDorneyoftheDiviaionofVVater(2ua|ityonDeoembar13' 20D8)
12. Gruundumter monitoring — AddhUona| vvd#an approval is required from DVVQ for a final
groundwater monitoring plan that supplements and'compliments the existing groundwater
monitoring that is being conducted by PC8 for various state and federal agencies. in
addition to other parameters subject to groundwater standards, cadmium and fluoride shall
be monitored /n the final groundwater monitoring plan. This plan shall include groundwater
monitoring of the protected portion of the Bonnertun Road Non'Riverine VVot Hardwood
Forest as noted in condition 9 above in order to ensure that the existing hydrology of this
site is maintained. This monitoring shall focus on the '58A^ area of the Bonnerton Road
Non-Riverine Wet Hardwood Forest to ensure that its groundwater hydrology is maintained.
13. Stream and watershed monitoring — The existing water management and stream monitoring
plan for water quality, water quantity and biology (macrobenthos and fish) shall be continued
for the |i#a of the Permit by the applicant. Additional monitoring shall be proposed by the
applicant and approved by DVVO for tributaries in the BnnneMon and South of33 tracts
before land clearing or impacts occur to those locations. This additional monitoring plan
shall collect data from a representative number ofatreamsin each tract and be designed \o
assure the protection of downstream water quality standards including Primary and
Secondary Nursery Area functions in tributaries to South Creek, Porter Cnaek, Durham
Crook and the Pamlico River adjacent to the mine site. Monitoring locations shall include
the upper end of Porter Creek in the "58A" portion of the Bonnertnn Road Nun-Rivahna VVei
Hardwood Forest in order to ensure that hydrology of this wet hardwood forest is
maintained,
The plan shall identify any deleterious effects to riparian wetland functions including by not
limited to water stonaQe, pollutant rornova|, stneombank otabi|ization, as well as resident
wetland-dependent aquatic life and resident vvet|and_depen dent wildlife and aquatic life in
wetlands and streams tributary tV the Penl||cO River inthe NCPC. Bonnerlon and South of
33 tracts, If necessary, management activities to protect o/ nastoro these uses will be
required for all the tributaries ofthese three tracts.
PCS shall notify DWQ in writing at least one month in advance of any biological sampling so
DVVC) biologists can aoc4nnpenyPCG biologists as needed. Also certified lab isrequired
for the identification of freshwater benthic macro invortebrate samples, For estuarine
samples, a knowledgeable lab shall be used until such time ao OVVO oerffiey laboratories
for estuarine analysis and after that hnne, only suitably certified |ebn shall be used. Finally a
fish monitoring plan shall be included in the final monitoring plan submitted to DVVC> for
written approval.

PCG Phosphate Cmopon\,^ buo
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This stream and watershed monitoring plan shall be submitted to OVV{> for written approval
within six months of the issuance of the 404 Permit, Seven copies (two herd copies and five
CD's) of the draft plan and annual reports shall be submitted to DWD for circulation and
review by the public and other federal and state agencies.
Expiration of Certification — Thin approval to proceed with your approved impacts or to conduct
impacts in waters as depicted in your application shall expire upon expiration of the 404 Permit
with the proviso that changes bo this Certification may be made in accordance with condition 5
(Continuing Compliance) above.
If this Certification is unacceptable to you, you have the right to an adjudicatory hearing upon
written request within sixty (80) days following nacm|pi of this modified Certification, Since as
noted above. this Certification completely replaces the one issued to you on OecemberS. 2008.
the sixty (60) day appeal period is for all the conditions of'this modified Certification. Any
request for adjudioatory hearing must bein the form ofa written petition conforming toChapter
150B of the North Carolina General Statutes and filed with the Office of Administrative Hearings,
87i4 Mail Service Center, Raleigh, N,C. 27690-6714, |f modifications are made toanoriginal
Certification, you have the right to an adjudicatory hearing on the modifications upon written
request within sixty (GO) days following receipt nfthe Cedifioation. Unless such demands are
made, this Certification shall be final and binding,
This the 1 |hduyofJunuary2009
DI N OF WATFEQUIALITY
CHrS'jrd