19981130 Ver 1_Undeliverable Mail_20070327

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Michael F. Easley, Governor
William G. Ross Jr., Secretary
North Carolina Department of Environment and Natural Resources
Alan W. Klimek, P.E. Director
Division of Water Quality
February 19, 2007
Mr. Michael Bryan
Highlands Cove, LLC
203 Green Street
Huntsville, Alabama, 35801
Re: Highlands Cove, Jackson County
DWQ #1998-1130; USACE Action ID. No. 19983311148
APPROVAL of 401 Water Quality Certification - Modit"ication
Dear Mr. Bryan:
Attached hereto is a copy of Certification No. 3232 issued to Mr. Michael Bryan of Highlands Cove,
LLC, dated February 19, 2007. In addition, you should get any other federal, state or local permits before
you go ahead with your project including (but not limited to) Solid Waste, Sediment and Erosion Control,
Stormwater, Dam Safety, Non-discharge and Water Supply Watershed regulations. This Certification
replaces the one issued to you on June 3, 1999.
If we can be of further assistance, do not hesitate to contact us.
Sincerely,
Alan W. Klimek, P.E.
AWKlcbk
cc: U.S. Army Corps of Engineers, Asheville Regulatory Field Office
Wilmington District, USACOE
Kevin Barnett, DWQ, Asheville Regional Office
Richard Phillips, DLR Asheville Regional Office
Doug Huggett, DCM
File Copy
Central Files
Steve Mauney
Nick Roark, Ecological Associates, 4676 Beards Bluff Road, Wadmalaw Island, SC, 29487
401 Oversight/Express Review Permitting Unit
1650 Mail Service Center, Raleigh, North Carolina 27699-1650
2321 Crabtree Boulevard, Suite 250, Raleigh, North Carolina 27604
Phone [phone] / Fax [phone]
Internet: http://www.ncwaterqualiry.org
NonehCarolina
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Highlands Cove
Page 3 of 7
February 19, 2007
NORTH CAROLINA 401 WATER QUALITY CERTIFICATION
TIIIS CERTIFICATION is issued in conformity with the requirements of Section 401 Public Laws 92-
500 and 95-217 of the United States and subject to the North Carolina Division of Water Quality (DWQ)
Regulations in 15 NCAC 2H, Section .0500 to place fill material in 0.69 acre of jurisdictional wetlands and
9021inear feet of streams that are tributary to Grassy Camp Creek and Shortoff Creek in the Little
Tennessee River Basin, associated with the construction of the Highlands Cove development in Jackson
County, North Carolina, pursuant to a revised application filed on the 16th day of September of 1998, and
in additional correspondence received December 11, 2006 and January 24, 2007, and to retain after-the-fact
impact on the Highlands Cove, LLC site near Cashiers, North Carolina.
The application and supporting documentation provides adequate assurance that the proposed work will
not result in a violation of 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, 303, 306, 307 of PL 92-500 and PL 95-217 if conducted in accordance with the application, the
supporting documentation, and conditions hereinafter set forth.
This approval is only valid for the purpose and design submitted in the application materials and as
described in the Public Notice. If the project is changed, prior to notification a new application for a new
Certification is required. If the property is sold, 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 wetland
or stream fill be requested in the future, additional compensatory mitigation maybe required as described
in 15A NCAC 2H .0506 (h) (6) and (7). If any plan revisions from the approved site plan result in a
change in stream or wetland impact or an increase in impervious surfaces, the DWQ shall be notified in
writing and a new application for 401 Certification may be required. For this approval to be valid,
compliance with the conditions listed below is required.
Conditions of Certification:
1. Impacts Approved
The following impacts are hereby approved as long as all of the other specific and general
conditions of this Certification (or Isolated Wetland Permit) are met. No other impacts are
approved including incidental impacts:
Amount A roved (Units) Plan Location or Reference
Stream 902 (feet) Corps of Engineers Public
Notice
404 Wetlands 0.69 (acres) Corps of Engineers Public
Notice
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.

Highlands Cove
Page 4 of 7
February 19, 2007
b. The design, installation, operation, and maintenance of the sediment and erosion control
measures must be such that they equal, or 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.
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 404/401Permit 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 to the maximum
extent practicable. If placement of sediment and erosion control devices in wetlands and waters is
unavoidable, they shall be removed and the natural grade restored within six months of the date that
the Division of Land Resources has released the project;
Continuing_Compliance:
Mr. Michael Bryan and Highlands Cove, LLC, 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) and any other appropriate requirements
of State law and federal law. If the Division determines that such standards or laws are not being
met (including the failure to sustain a designated or achieved use) or that State or federal law is
being violated, or that further conditions are necessary to assure compliance, the Division may
reevaluate and modify this Certification to include conditions appropriate to assure compliance
with such standards and requirements in accordance with 15A NCAC 2H.0507(d). Before
modifying the Certification, the Division shall notify Mr. Michael Bryan and/or Highlands Cove,
LLC and the US Army Corps of Engineers, provide public notice in accordance with 15A NCAC
2H.0503 and provide opportunity for public hearing in accordance with 15A NCAC 2H.0504.
Any new or revised conditions shall be provided to Mr. Michael Bryan and/or Highlands Cove,
LLC in writing, shall 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;
Mitigation:
The 401 Water Quality Certification issued for this project on June 3, 1999 noted that the applicant would
mitigate at a 2:1 ratio for the unavoidable wetland and stream impacts which was to include combined.
on-site and off-site restoration and preservation. The Certification required that mitigation for the 902 ft of
stream impacts was to include a 1:1 ratio of restoration or creation towards meeting the requirement for the
2:1 ratio. Since that time, mitigation which could be accomplished onsite has been approved by DWQ. The
applicant has exhausted all possibilities for onsite mitigation, with a deficit of 802 feet of stream restoration
remaining. On December 11, 2006, DWQ received a request from the applicant to utilize the Ecosystem
Enhancement Program to cover this deficit. The mitigation requirement breakdown to date is as follows:

Highlands Cove.
Page 5 of 7
February 19, 2007
Compensatory Mitigation River and Sub-Basin Number
Required
Streams 1804 feet (902 feet impact Little Tenn 06010203
@l:l ratio)
Wetlands 1.38 acres (0.69 acre impact Little Tenn 06010203
2:1 ratio)
7. Compensatory Mitigation Using the Ecosystem Enhancement Program (EEP)
Mitigation must be provided for the proposed impacts as specified in the table below. We
understand that you wish to make a payment to the Wetlands Restoration Fund administered by
the NC Ecosystem Enhancement Program (EEP) to meet this mitigation requirement. This has
been determined by the DWQ to be a suitable method to meet the mitigation requirement. Until
the EEP receives and clears your check (made payable to: DENR -Ecosystem Enhancement
Program OfEce), no impacts specified in this Authorization Certificate shall occur. The EEP
should be contacted at [phone] if you have any questions concerning payment into a
restoration fund. You have 60 days from the date of this approval to make this payment. For
accounting purposes, this Authorization Certificate authorizes payment into the Wetlands
Restoration Fund to meet the following compensatory mitigation requirement:
Compensatory Mitigation
Required River and Sub-basin Number
Stream 802 (feet) Little Tenn 06010203
8. Compensatory Mitigation Using Other Methods
The remaining mitigation requirement must be provided as specified in the table below. 100 feet
of stream restoration work was implemented onsite. Additionally, Highlands Cove conveyed
acres, of property (including streams and wetlands) to the Nantahala National Forest to ensure
long-term preservation in order to satisfy the 2:1 credit ratios required for streams and wetlands in
the Certification issued June 3, 1999. This contribution has been determined by the DWQ to be a
suitable method to meet the mitigation requirement.
Compensatory Mitigation River and Sub-basin Number
Required
Streams 100 (feet) onsite restoration Little Tenn 06010203
Wetlands 1.38 (acres) Conveyance to Little Tenn 06010203
Nantahala National Forest
Streams 902 (feet) Conveyance to Little Tenn 06010203
Nantahala National Forest
Other conditions:
The Wildlife Resources Commission has confirmed that trout reside in Grassy Camp Creek and
Shortoff Creek. The applicant must modify the erosion control plans for any incomplete parts of
the project to meet the trout water requirements for the complete site, protecting Grassy Camp
Creek, Shortoff Creek and their tributaries. These updated plans must be submitted to the
Division of Land Resources within 45 days of the issuance of this certification for their written
approval. All additional submittals of erosion control plans for this project must meet these
requirements for protection of trout populations;

Highlands Cove
Page 6 of 7
February 19, 2007
10. A thirty (30) foot vegetative buffer must be retained along the full length of Shortoff Creek and
Grassy Camp Creek. Only water dependent structures and road crossings or golf cart crossings as
previously approved and which result in only deminimus increases in impervious area such as
signs, flag poles and security lights will be allowed. These preserved stream corridors will be
protected by a declaration of restrictive covenants properly recorded with the Jackson County
RMC Office. All other streams on this site that are determined to be perennial by the Jackson
County Watershed Administrator must be protected by a thirty (30) foot vegetative buffer.
11. The applicant must acquire an estimate of the hydrologic conditions from the USGS for both
Grassy Camp Creek and Shortoff Creek where they flow off of the applicant's property. Data will
include as a minimum the drainage area, average flow, winter 7Q 10, and the summer 7Q 10. The
applicant must submit same to the DWQ, Asheville Regional Office within 45 days of the
issuance of this certification;
12. The applicant must evaluate all of the water uses for this site including domestic use, residential
irrigation and golf course irrigation. This must be submitted (4 copies) as a "water-use balance" to
the DWQ, Asheville Regional Office within 60 days of the issuance of this certification. It should
demonstrate the applicant's ability to utilize wastewater reuse technologies and meet all water
demands under the most severe drought conditions. It must demonstrate the ability of the project
to meet its needs for water and to maintain downstream flows in accordance with the 7Q10 flows
estimated by USGS. Where the natural stream flow drops below the 7Q10 conditions, the ponds
will be required to release this natural stream flow. Appropriate stream flow devices as approved
by the USGS must be installed on-site to document these releases. Upon approval of the "water-
use balance" by DWQ, it must be implemented by the applicant. The applicant must submit an
annual report (4 copies) by each March 15th of each of the next five years to the DWQ, Asheville
Regional Office which summarizes the flow events and the minimum pond releases for each prior
calendar year. Upon written request by the DWQ, Asheville Regional Office during the fifth
year, the applicant shall submit the annual report for five additional years or less as determined by
the DWQ.
13. As this project drains into WS-III waters the applicant must consult with the Jackson County
Watershed Administrator to determine if the site plan for this project meets the density and
set-back requirements of the county ordinance. If the proposed project does not comply, then it
must be modified so that a certification of compliance can he submitted from the Jackson County
Watershed Administrator to the DWQ, Asheville Regional Office within 60 days of the issuance
of this certification;
14. The applicant must develop and maintain in consultation with fisheries agencies a habitat
management plan for brook trout populations on all project streams capable of supporting these
fish. This plan should address such issues as chemical management (golf course and club use,
residential use and road management use), fishing pressure (how and when allowed, plus who.
will manage it), fish movement within the site (including the need for a fish ladder at storm water
pond #1 and other locations plus their management) and other issues identified by the Wildlife
Resources Commission as essential to the development of an effective plan. This habitat
management plan (4 copies) must be submitted to the DWQ, Asheville Regional Office within 60
days of the issuance of this certification. Upon written approval of the plan by DWQ (in
consultation with fisheries agencies) the applicant must implement the plan;
15. The applicant must conduct an initial benthic and fish study of Grassy Camp Creek and Shortoff
Creek within 90 days of the issuance of the 404 permit but not later than the initiation of
construction of the in-stream pond on Grassy Camp Creek. An annual study will be required for

•,
Highlands Cove
Page 7 of 7
February 19, 2007
the nest 3 years and it should be conducted between May 15"' and June 15"' of each of the
succeeding years. A report (4 copies) of these study findings is to be submitted to the DWQ,
Asheville Regional Office by September 15th of each year. Upon written request by the DWQ,
Asheville Regional Office during the third year, the applicant shall submit the annual study for
two additional years;
16. Measures shall be taken to prevent live or fresh concrete from coming into contact with the
waters of the state until the concrete has hardened;
17. Should waste or borrow sites be located in wetlands or other waters, compensatory mitigation
will be required since these impacts would be a direct impact of this development.
Violations of any condition herein set forth shall result in revocation of this Certification and may result
in criminal and/or civil penalties. This Certification shall become null and void unless the above
conditions are made conditions of the Federa1404 and/or Coastal Area Management Act Permit.
Also, this approval to proceed with your proposed impacts or to conduct impacts to waters as
depicted in your application shall expire upon expiration of the 404 Permit.
If this Certification is unacceptable to you, you have the right to an adjudicatory hearing upon written
request within sixty (60) days following receipt of this Certification. This request must be in the form of a
written petition conforming to Chapter 150B of the North Carolina General Statutes and filed with the
Office of Administrative Hearings, 6714 Mail Service Center, Raleigh, N.C. 27699-6714. If
modifications are made to an original Certification, you have the right to an adjudicatory hearing on the
modifications upon written request within sixty (60) days following receipt of the Certification. Unless
such demands are made, this Certification shall be final and binding.
This the 19"' day of February 2007
DIVISION OF WATER QUALITY
.~~4
Alan W. Klimek, P.E.
AWKlcbk

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Michael F. Easley, Governor
William G. Ross Jr., Secretary
North Carolina Department of Environment and Natural Resources
Alan W. Klimek, P.E. Director
Division of Water Quality
North Carolina Division of Water Quality
401 Water Quality Certification
Summary of Permitted Impacts and Mitigation Requirements
In accordance with 15A NCAC,2H.0500, Mr. Michael Bryan and Highlands Cove, LLC have permission as
outlined below to impact 0.69 acres of wetlands and 902 linear feet of streams for the purpose(s) of constructing
the proposed Highlands Cove development in Jackson County. All activities associated with these authorized
impacts must be conducted with the conditions listed in the attached Permit transmittal letter. THIS
CERTIFICATION IS NOT VALID WITHOUT THE ATTACHMENTS.
COMPENSATORY MITIGATION REQUIREMENTS, ECOSYSTEM ENHANCEMENT PROGRAM
DWQ PROJECT #: 1998-1130
LOCATION: Highlands Cove
COUNTY Jackson
BASIN/ SUB BASIN Little Tennessee, 06010203
As required by 15A NCAC 2H.0500, and the conditions of this Certification, you are required to compensate for
the above mitigabee impacts through the restoration, creation, enhancement or preservation of wetlands, surface
waters and riparian buffers as outlined below prior to conducting any activities that impact or degrade the waters of
the state.
Note: Acreage requirements proposed to be mitigated through the Ecosystem Enhancement Program must be
rounded to one-quarter acre increments and linear foot requirements must be rounded up to the nearest
foot according to 15 2R.0503(b).
Im acts Miti ation
0.69 Acres of non- ri arian wetlands 1.38 Acres of non- ri arian wetlands

902 Linear feet of Stream 1804 Linear feet of Streams, to include
802 feet by the EEP
One of the options you have available to satisfy the compensatory mitigation requirement is through the payment of
a fee to the Wetlands Restoration Fund per NCAC 2R.0503. If you choose this option, please sign this form and
mail the form along with a copy of your 401 Certification to the Ecosystem Enhancement Program at the address
below. An invoice for the appropriate amount of payment will be sent to you upon receipt of this form. PLEASE
NOTE, THE ABOVE IMPACTS ARE NOT AUTHORIZED UNTIL YOU RECEIVE NOTIFICATION THAT
YOUR PAYMENT HAS BEEN PROCESSED BY THE ECOSYTEM ENHANCMENT PROGRAM.
Signature
Date
ECOSYSTEM ENHANCEMENT PROGRAM
1652 Mail Service Center
RALEIGH, N.C. 27699-1652
[phone]
Filename: HighlandsCove(Jackson)401_EEP

NorthCarolina
401 Oversight/Express Review Permitting Unit JVatura!!y
1650 Mail Service Center, Raleigh, North Carolina 27699-1650
2321 Crabtree Boulevard, Suite 250, Raleigh, North Carolina 27604
Phone [phone] / Fax [phone]
Internet: http://www.ncwaterquality.org
An Equal Opportunity/Affirmative Action Employer - 50% Recycled/10% Post Consumer Paper

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