20021521 Ver 1_Complete File_20050211

WC,
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Natural Resources
/ Restoration C'onscivation
Feb ary 11, 2005
Dear Elk Marsh MBRT Member:
r
Please find enclosed a Mitigation Bank Prospectus for the Elk Marsh wetland mitigation
site located in Halifax County, North Carolina.
Cof ngineers has convened a Mitigation Bank
Mr. Todd Tugwell of the US ArmLyar,o
th r 31st and I am sending this Prospectus to
Review Team meeting for either 30
you in advance at his request. Mr. Tu 11 ill confirm the meeting date.
I have also included directions to the site from Raleigh. The address is 1521 Grapevine
Rd. Halifax, NC 27839.
Please call me at the number below if you have any questions.
Sincerely, John Preyer
Cc: Mr. Todd Tugwell, USACE
?P, 5
c?vha
7
Pilot Mill • 1101 Haynes St., Suite 107 • Raleigh, NC 27604 • wwwrestorationsystems.com • Phone: [phone] • Fax: [phone]
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5. Turn 19 on US-64 EAST - go 42.4 mi
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7. g Take exit #168 towards HALIFAX - go 0.2 mi
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WETLAND MITIGATION BANK PROSPECTUS
ELK MARSH WETLAND MITIGATION BANK
TAR-PAMLICO RIVER BASIN, HALIFAX COUNTY, NORTH CAROLINA
Prepared for:
US Army Corps of Engineers
and
Mitigation Banking Review Team
Prepared by:
Restoration Systems, LLC
107 Haynes Street, Suite 107
Raleigh, North Carolina 27604
919-755-9490
Natural Resources
Restoration ('?- (_'ortservatlon
November, 2004
M3 r--3
MAR 2 2005
DENR - WATER QUA111" f
WETLANDS AND STQRMWATER BRANCH

I INTRODUCTION
' The Elk Marsh Wetland Mitigation Bank ("Elk Marsh") will provide wetland credits,
pre-approved by the U.S. Army Corp of Engineers and the North Carolina Department of
Environment and Natural Resources (NCDENR), for use in the compensatory mitigation
for unavoidable wetland impacts in the bank's service area. The service area will be
determined by the Mitigation Bank Review Team ("MBRT"). Upon completion, the Elk
Marsh Site will be a fully integrated bottomland/swamp ecosystem replete with
r successional vegetative and hydrologic regimes representative of similar naturally
occurring systems in the region.
For the past 180 years the proposed Elk Marsh Site has supported row crops and other
agricultural commodities. The site's prior converted wetland status allows for existing
' ditches to be maintained and agricultural chemicals to be applied. Under its current use,
intensive agronomic chemical applications will continue to add significant amounts of
nutrients and pesticides to the native plant and animal communities, and ultimately to the
waters of the Tar-Pamlico River Basin. To further ensure viable crop production,
intensive field management will also continue to maintain these historic wetlands in a
drained and degraded state. The Bank Sponsor, Restoration Systems, LLC, proposes to
restore the hydrologic regime and native plant communities that were once characteristic
of the Elk Marsh Site. Restoration of the natural system should significantly improve
water quality both on-site and throughout the down stream watershed as well as restore
' other lost wetland functions.
By removing large-scale agricultural use from the floodplain of Elk Marsh, the Elk Marsh
Site will increase the ecological values in the regional watershed through a significant
reduction in fertilizer and pesticide inputs. Ecological/habitat values will also be
increased by the restoration of a diverse natural plant community that interfaces with
' existing communities resulting in dispersal corridors and refuge for game and non-game
species.

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The Tar-Pamlico River Basin is classified as Nutrient Sensitive by NCDENR, so the long
term health of the basin is critically dependent on reducing the overall nutrient loading in
the basin. To that end, the proposed Elk Marsh Site will have the dual effect of both
removing a source of nutrient input and providing a point of nutrient uptake. The Site's
status will change the use from agricultural to "permanently protected" to ensure that
these two functions will be maintained in perpetuity.
To augment the ecological benefits of the Elk Marsh Site another wetland restoration
project immediately adjacent to the site is scheduled to begin construction in late May of
2005. With both sites completed, the entire floodplain will be restored from toe-of-slope
to the Run of Marsh Swamp, which is the primary water feature in the combined wetland
complex.

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SITE DESCRIPTION
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t'4< } Run of Marsh Swamp

} ?_ J Approved EBX Wetland
Restoration Site

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Elk Marsh Site
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Elk Marsh Wetland Mitigation Bank
Approximate Bounds
Scale 1:2000
Darlington, USGS Topographic Quad
The Elk Marsh Site is located approximately midway between Roanoke Rapids and
Enfield, North Carolina in Halifax County (Figure 1). The site consists of approximately
175 acres (Table 1) and is situated between Grapevine Road to the east and the Run of
Marsh Swamp to the west. Prior to being cleared, drained, and converted to cropland in
the early 1800's, the site was a forested swamp ecosystem. An 1804 map in the
landowner's archives (viewable upon request) clearly shows McCulloch's Ditch, which
was excavated through Elk Marsh for the sole purpose of draining the area for
agricultural pursuits. This conversion of more than 180 acres from swamp forest to
farmland allowed for the successful production of row crops. The conversion was aided
by the construction of dikes adjacent to the Run of Marsh Swamp, which prevented it
from flooding into the adjacent fields surrounding Black Spring Creek (Figure 2). Both
Black Spring Creek and the Run of Marsh Swamp were then channelized and redirected
to increase the volume and speed of these existing drainage features. Drainage was
further accelerated by both lateral and transverse ditches that were cut through the
alluvial wetland soils and excavated to slope toward McCulloch's Ditch (Figure 3).
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The Natural Resource Conservation Service (MRCS) recently re-confirmed the Prior
Converted status of the 83 acres of farmed bottomland (Figure 4), which recently
supported a crop of corn and is currently planted in wheat. In total, the Elk Marsh Site
presents a significant opportunity to restore 83 acres of prior converted cropland, enhance
20 acres of cut-over riverine wetland, and preserve 52 acres of existing riverine swamp
and 20 acres of upland forest.
Table 1. Types and Amounts of Proposed Mitigation at the Elk Marsh Mitigation Site
Targeted Mitigation Existing Condition Targeted Community Type Acreage
Restoration Row Crops PC Status Swam and bottomland forest. 83
Enhancement Pine plantation Bottomland forest 20
Preservation Wetland Swam and bottomland forest 52
Uplands Forest & Row Crops U land Forest 20
Mapped Resources:
The Darlington USGS 7.5 minute topographical quadrangle and National Wetland
Inventory (NWI) Map depict the Run of Marsh Swamp as a perennial water feature.
McCulloch's Ditch (the primary drainage ditch located on the site), Black Spring Creek
(located in the northeastern portion of the site), and an unnamed tributary to Elk Marsh
are identified as intermittent water bodies on these same maps. These water features, and
one other, are depicted on the working sheets for the Halifax County Soil Survey; these
maps have not been finalized and are subject to change prior to their being published.
The additional feature is an intermittent stream that forks in a southeasterly direction
from Black Spring Creek.
Mapped Soils:
According to the Halifax County Soil and Water Conservation District, the project site is
located on a Bibb/Chastain soils association. The soils identified in the association are
listed on the national hydric soils list and are alluvial soils.
Mapped Vegetated Wetlands:
NWI maps indicate that the wetlands on the site are temporarily and seasonally flooded
palustrine systems with emergent, scrub-shrub, and forest vegetation. NWI mapping
does not include areas that are identified as agricultural on the USGS quadrangle or the
soil survey sheets.
PRELIMINARY SITE EVALUATION NARRATIVE:
Significant manmade hydrology modifying structures are located within the targeted
restoration area. Site visits revealed lateral drainage ditches within the floodplain
draining to McCulloch's Ditch, an eight to ten foot tall dike running parallel to the Run of
Marsh Swamp for some four thousand plus linear feet, and diversion ditches located at
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the toe of slopes (at the interface of the floodplain and adjacent high ground) to convey
' surface water runoff from topographic draws to the larger lateral ditches. None of the
lateral or diversion ditches are shown on the USGS Topographic Quadrangle.
Portions of the targeted restoration area currently support a wheat crop. Other areas have
been tilled and have supported various row crops throughout the history of the site. The
current owner indicates that much of the targeted restoration site has been in row crops or
other agricultural use since the site was first converted from a forested swamp system in
the early 1800's.

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Forested areas immediately adjacent to the restoration area have reduced soils but appear
to lack sufficient hydrology to be declared jurisdictional wetlands. These areas currently
support wild onions and other non-wetland herbs. Historic hydrology appears to have
been removed by lateral ditching running parallel with existing tree lines. Upon
restoration of the cultivated areas, the forested areas adjacent to the floodplain will likely
have increased hydrologic regimes.
Soils
The presence of reduced soils within the floodplain was verified during site visits in June
of 2004. The reduced soils appear to fall within the areas mapped as Chastain and Bibb.
These soils were drained and farmed primarily for the purpose of row crop production.
Existing Hydrology
Water was observed in all lateral ditches during the site visits. In most cases the water
was at least 18 inches below the adjacent ground surface elevation. Water filled hand
augured borings to within 18 inches of the ground surface elevation, in some areas free
standing water was within 10 inches of the surface. Interestingly, irrigation equipment is
located in the targeted restoration area because the site has been sufficiently drained to
the point where it merits periodic watering during the growing season.
Existing Vegetation
Targeted restoration areas currently support a wheat crop. Targeted enhancement areas
are planted in pine for the purpose of silviculture, and preservation areas are dominated
by invasive wetland species such as willow and sweet gum.
CONCEPTUAL MITIGATION PLAN
The filling of McCulloch's Ditch and the associated lateral ditches should restore the
historic hydrologic regime of the floodplain shared by Black Spring Creek and the Run of
Marsh Swamp. Based on the soil types and landscape position of the Elk Marsh Site, the
Bank Sponsor feels that the appropriate target communities for the restoration plan are
bottomland hardwood forests, small stream swamps, and cypress-gum swamps (all
brownwater subtypes, Schafale and Weakley, 1990, Classification of the Natural
Communities of North Carolina) (Figure 5). The opportunity to increase the hydrologic
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retention of both surface and subsurface flows by filling McCulloch's Ditch should
provide sufficient hydrology for the proposed bank to meet its success criteria.
In addition, according to the landowner, the dike along The Run of Marsh Swamp will be
removed in part or in full in conjunction with the adjacent wetland restoration project.
The dimensions and composition of the dike located adjacent to The Run of Marsh
Swamp indicate that large amounts of material were removed from the channel for use in
dike construction. The dike increased the height of the eastern bank, which in turn
expedited the conveyance of water through the project area and minimized the overbank
events onto the eastern floodplain. Without this increased conveyance, it is again more
than likely that historic bank-full events would have inundated the proposed site for long
periods of time. By removing the dike these long periods of inundation should return
throughout the entire floodplain thereby promoting site characteristics similar to those
observed at the reference area just downstream of the Elk Marsh Site near NC Highway
561. This reference area is mapped on the NWI as Palustrine; forested in broad and
needle leaved deciduous trees, and seasonally flooded (PF04c) with soils similar to the
Elk Marsh Site.
Black Spring Creek and McCulloch's Ditch support aquatic life, but lack natural channel
morphology. In all likelihood McCulloch's Ditch is the redirected remnant of Black
Spring Creek. Where appropriate, meanders and braids will be restored to lateral
tributaries within the existing ditch floodplain, and the banks will be re-vegetated and re-
configured to allow for more consistent over-bank flooding.
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The historic natural plant communities for this site have been assessed as bottomland
hardwood forest, coastal plain small stream swamp, and cypress-gum swamp. Wetter
communities were most likely located in areas adjacent to Marsh Creek and in
depressions throughout the floodplain. Areas consisting of Bibb and Chastain soils that
may have flooded more frequently for longer duration before the hydrology was altered
could likely support either type of swamp community. This assumption is based on the
characteristics of Elk Marsh below and downstream of the project site (as referenced
above), and on the similar topography of both the site and the reference areas. A more
detailed analysis of the site must be made in order to determine the extent of existing
jurisdictional wetlands. However, it would appear that the attempts to drain the
silviculture areas have been less successful than the highly effective efforts to drain the
areas currently cultivated in row crop production.
The overall objective for the site will be to restore wetland hydrology by filling existing
ditches and restoring existing streams. The hydrology will also benefit from the
secondary impact of the scheduled dike removal on the adjacent mitigation site. This
combined hydrologic restoration should provide temporary and seasonal flooding
throughout the flood plain, which in turn should support plant communities ranging from
bottomland hardwood forest to cypress-gum swamp.

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THE PROPOSAL
PROJECT GOALS AND OBJECTIVES
The Elk Marsh Wetland Mitigation Bank proposes to:
? Restore a prior converted wetland to a bottomland / swamp ecosystem;
? Enhance an existing degraded wetland system;
? Provide wetland resource compensation in advance of actual wetland impacts thereby
minimizing the temporal loss to the ecosystem;
? Contribute significantly to the long-term delivery of wetland functions and values
within the Tar-Pamlico River Basin Watershed;
? Provide a conduit through which entities requiring off-site compensatory mitigation
for unavoidable wetland impacts can purchase high quality credits that have been pre-
approved by the regulatory agencies; and
? Maximize the efficiency and timeliness of the permitee's compliance with the
conditions of the section 404 and 401 of the Clean Water Act by providing a
centralized repository through which entities requiring off-site compensatory
mitigation for unavoidable wetland impacts in the Elk Marsh Wetland Mitigation
Bank service area can purchase credits that have been pre-approved by the permitting
agencies.
As noted, the Bank Sponsor will create and enhance various wetland habitats and
ecological communities. These communities will include, but not be limited to; restored
forested wetlands, emergent scrub shrub areas, enhanced swamp wetland systems,
vegetated forest buffers and forest corridors. The Elk Marsh Wetland Mitigation Bank
credit composition may also include other additional existing environmental resources
found throughout the site.
The wetlands will be designed and restored as part of the Site Specific Mitigation Plan
that will be attached to the Mitigation Banking Instrument ("MBI"). The MBI will be
developed jointly by the MBRT and the Bank Sponsor. The detailed plan will focus on
N the restoration of a complete ecological system within the limits of the 155-acre site. The
mitigation plan will utilize proven ecological engineering, natural resource management
and land planning concepts to create a fundamentally sound and fully functional natural
resource system. The restoration of this system will build upon the existing on-site
resources and adjacent indigenous habitats to provide long-term delivery of natural
wetland functions and values to the Tar-Pamlico River Basin Watershed.
It is expected that all approved credits will be considered for providing compensatory
mitigation for permitted riverine wetland impacts within the Elk Marsh Wetland
Mitigation Bank service area. The number of credits will be determined by applying the
appropriate regulatory ratios as specified in the MBI. The Bank Sponsor proposes that
credits be released in a manner consistent with existing and proposed banking
instruments in North Carolina.
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The proposed service area of the bank is Cataloging Unit 03020102 (USGS Hydrologic
Unit Map - 1974 State of North Carolina) and adjacent Cataloging Units, as determined
by the MBRT. The Elk Marsh Mitigation Bank Sponsor will also propose that the Bank
be considered, on a case by case basis, as a mitigation alternative for impacts outside of
the specified service area.
TECHNICAL OVERVIEW
Geotechnical and hydrologic engineering techniques will be used to investigate and
implement the Site Specific Mitigation Plan. These techniques will be coupled with
adaptive management strategies that will allow the Bank Sponsor to respond to the
dynamic and evolving conditions of the restored wetland ecosystem throughout the
construction, maintenance and monitoring periods.
Restoration will be tied to meeting or exceeding the mean hydrology for bottomland and
swamp ecosystems in the region. Hydrologic restoration may include, but will not be
limited to filling existing ditches, restoring stream meanders and increasing sheet flow.
Suitable native plant species will be strategically grouped throughout the site in "planting
zones" to restore and supplement the vegetative base. These supplemental plantings will
be obtained from the state forestry service, locally grown native plant sources or
propagated from onsite nurseries.
The Bank Sponsor will actively manage the site to give desirable plants an opportunity to
dominate. This combination of selective grading, supplemental plantings and active
management should ensure the establishment of a natural vegetative community
consistent with those natural communities found throughout the Tar-Pam Watershed.
To assure the successful attainment of the wetland mitigation requirements as specified
by the MBRT, a suite of success criteria similar to those adopted in other banking
instruments will be developed, against which the mitigation project can be evaluated.
The criteria may include:
? number of woody stems per acre or basal area,
? percentage cover by vegetation,
? community diversity,
? duration of saturation or ponding during the growing season, and
? measures of wetland functions using established practices
To measure progress toward the successful achievement of the criteria, both existing and
new data will be used to quantify the objectives. This data will be compiled from on-site
monitoring studies including, but not limited to, river gauge analysis, ground truthing,
topographic conditions, groundwater monitoring and soils analysis. Where the
monitoring effort suggests that progress for one or more of the success criteria is not
meeting a level that will allow success within the five (5) year monitoring period, the

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Bank Sponsor will evaluate opportunities for adaptive management or remedial bio-
engineering.
BENEFITS.
The benefits provided by the Elk Marsh Wetland Mitigation Bank include:
? Up to 155 acres of wetland restoration, enhancement and preservation of a
riverine swamp ecosystem;
? Improved water quality, storm water management, and flood water
retention in the Tar-Pamlico River Basin
? Streamlined regulatory review of compensatory mitigation for
unavoidable wetland impacts;
? Establishment of forest corridors and buffers along the shared floodplain
of the Run of Marsh Swamp and Black Spring Creek;
? Additional water retention in the Elk Marsh ecosystem;
GENERAL APPROACH TO RELEVANT BANKING ISSUES
Methods for Determining Bank Credits and Debits- The number of restoration,
enhancement and preservation credits will be determined consistent with the ratios
specified in the MBI.
Proposed Accounting Procedures-The Bank will establish and maintain an accounting
system (i.e. ledger) which will document credits and debits to the Bank account. The
Bank will submit reports to the permitting agencies documenting approved debit or credit
transactions that have occurred. The Bank will also submit Annual Reports to the MBRT.
In the interim periods, the ledger will be available for inspection upon written request.
Proposed Performance Standards for Credit Availability and Bank Success - The
release of credits will be conditioned upon the achievement of interim or final success
criteria specific to the Elk Marsh Site. The criteria will be recorded and fully
documented in the MBI. Periodic monitoring data will be measured against established
baselines for success, and in the event that the Elk Marsh Site is projected to fall short of
its interim or final success criteria, remedial action may be undertaken by the Bank
Sponsor. With the exception of pre-sale credits, no credits will be released prior to
meeting the interim or final success criteria.
In addition, the following general guidelines apply to the Bank:
1. The Bank will receive one credit for each sub-parcel of acreage of the site that
meets the regulatory ratios and performance criteria.
2. Debits of available credits from the Bank will be based on the permit
requirements of duly authorized projects. The permit requirements will
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normally reflect consideration of the value of the wetlands impacted as well as
the environmental value of the wetland credits.
3. It is anticipated that at least 15% of the gross credits assigned to the Bank will
be available for pre-sale upon regulatory approval of the MBI. The remainder
of the credits will be available for sale on a pro-rata basis upon achievement
of the sequential success criteria.
' Prposed Reporting Protocols and Monitoring _P_ Plan-Reports detailing the accounting
status and monitoring results will be submitted to the MBRT on at least an annual basis.
In the interim periods, the ledger and monitoring reports will be available upon written
request from the MBRT to the Bank Sponsor.
Proposed Monitoring, Remedial Actions, and Financial Assurances-Decisions
concerning the operational life of the Bank, long-term monitoring, maintenance,
management, remedial actions and financial assurances will be made in accordance with
Federal Banking Guidance and approved by the MBRT.
Provisions for Long-term Management and Maintenance-The restored, enhanced and
preserved wetlands and buffer areas that comprise the Elk Marsh Site and that are
ultimately used for compensatory mitigation will be provided long-term protection in the
form of a perpetual conservation easement that is agreeable to the MBRT.
REQUEST FOR AUTHORIZATION TO PROCEED
In closing, the Bank Sponsor requests that the U.S. Army Corps of Engineers identify and
assemble a Mitigation Bank Review Team to oversee the development of the Elk Marsh
Wetland Mitigation Bank.

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VIRGINIA
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