20100099 Ver 2_USACE Correspondence_20111028

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IN REPLY REFER TO
DEPARTMENT OF THE ARMY
WILMINGTON DISTRICT, CORPS.OF ENGINEERS
Washington Regulatory Field Office
Post Office Box 1000
Washington, North Carolina 27889-1000
October 26, 2011
Regulatory Division
ORM ID SAW-2010-00142 Pancho Wetland and Stream Mitigation Bank
Ms. Tara Alden
Restoration Systems, LLC
1101 Haynes Street, Suite 211
Raleigh, North Carolina 27604
Dear Ms. Alden:

OCT 1@@Pnq@ n?
2 8 2011
mrs-r?eao?,
This correspondence is in reference to the proposed Pancho Stream and Wetland Mitigation
Bank that you are developing approximately 11 miles west-southwest of Goldsboro (35.33363N
-78.19267W) on North Carolina State Road 1008 in and adjacent to Kennedy Mill Branch in
Wayne County, North Carolina. The purpose of this letter is to address the Mitigation Bank
Instrument and Mitigation Plan received in this office on August 25, 2011.
On September 6, 2011, I sent a copy of the document to the Interagency Review Team for
their review and comment. In the enclosed letter dated September 19, 2011, the North Carolina
Division of Coastal Management (NCDCM) stated that the proposed bank and its geographical
service area are outside any areas where the NCDCM has jurisdiction. As a result, NCDCM
requested that they be removed from the Mitigation Banking Instrument and other documents
associated with this bank. As we discussed, no other comments were received prior to the
October 6, 2011 comment deadline. However, the North Carolina Division of Water Quality did
submit a comment letter on October 26, 2011. I have enclosed a copy of that letter for your
review.
As you know, we have an onsite meeting scheduled for November 3, 2011. The purpose of
this meeting is to verify Corps jurisdiction and to assess the existing conditions on the site. As
stated in our February 10, 2010 and our December 22, 2010 letter, the Corps has expressed
concerns regarding the baseline information used to calculate credit levels and ratios and the
appropriateness of some portions of the project design. Following the site visit, the Corps will
have the necessary information required to address specific information included in the
Mitigation Plan and in the Mitigation Bank Instrument. Detailed comments will be submitted to
you following this site visit.
Thank you for your time and cooperation. The Wilmington District is committed to providing

the highest level of support to the public. To help us ensure we continue to do so, please
complete the Customer Satisfaction Survey located at our website at
hnp://relzulatory.usacesurvey.com/. If you have any questions, please contact me at the
Washington Regulatory Field Office, telephone [phone].
Sincerely,
Tracey L. Wheeler
Regulatory Project Manager
Washington Regulatory Field Office
Copies Furnished:
Ms. Becky Fox
Wetlands Regulatory Section - Region 17V
United States Environmental Protection Agency
1307 Firefly Road
Whittier, North Carolina 28789
Mr. Ron Sechler
National Marine Fisheries Service
Habitat Conservation Division
101 Pivers Island Road
Beaufort, North Carolina 28516
Mr. John Ellis
United States Fish and Wildlife Service
Ecological Services - Raleigh Field Office
Post Office Box 33726
Raleigh, North Carolina 27636-3726
Mr. David Cox
North Carolina Wildlife Resources Commission
1142 I-85 Service Road
Creedmoor, North Carolina 27522
V
Mr. Ian McMillan
Division of Water Quality
North Carolina Department of Environment
and Natural Resources
Mail Service Center 1650
Raleigh, North Carolina 27699-1650
Mr. Doug Huggett
Division of Coastal Management
North Carolina Department of Environment
and Natural Resources
400 Commerce Avenue
Morehead City, North Carolina 28557-3421
Beverly Eaves Perdue
Governor
i7
NCDENR
North Carolina Department of Environment and Natural Resources
Division of Coastal Management
Tracey L. Wheeler
Regulatory Project Manager
Us Army Corps of Engineers
Regulatory Division
PO Box 1000
Washington, NC 27889-1000
Dee Freeman
Secretary
September 19, 2011 _ _
VE
SEP 2 2 2031
U.S. ART CORPS ENG
Iaslzir o -Regu4iton7 F.1d 0&
Subject: Pancho Stream and Wetland Mitigation Bank
DCM Recusal as Party to MBI
Dear Ms. Wheeler:
The NC Division of Coastal Management (DCM) appreciates the opportunity to serve on the North Carolina
Interagency Review Team (IRT). DCM administers the provisions of the Coastal Area Management Act
(LAMA), the NC Dredge and Fill Law, and the federal Coastal Zone Management Act of 1972 within the
twenty counties that make up North Carolina's coastal zone. The proposed Pancho Stream and Wetland
Mitigation Bank, as well as its service area, is located outside of the coastal zone and this bank is not intended
to provide mitigation for any projects located within the coastal zone. As a result, this proposed bank is not
subject to DCM's regulatory authority. Therefore, DCM shall be recused as a party to execute the agreement
to establish this mitigation bank. Please remove the reference to DCM in the Mitigation Banking Instrument
(MBI) and other documents associated with this mitigation bank or indicate DCM's recusal from the
agreement.
If you have any questions, please contact Steve Sollod (me) at 919-733-2293 extension 230 or via e-mail at
[e-mail]. Thank you for your consideration of the North Carolina Coastal Management
Program.
Sincerely,

Doug Huggett
Manager, Major Permits and Consistency Unit
1
1638 Mail Service Center, Raleigh, NC 27699-1638 NOI1?aTOla
Phone: [phone] ! FAX: [phone] Internet: vAm.nccoastalmanagement.net - r
An Equal Opportunily!Affirma6vekbonEmployer Y ' at'Imll'ff
NCDENR
:'.'forth Carolina Department of Environment and Natural Resources
Division of Water Quality
Beverly Eaves Perdue Coleen H. Sullins
Governor Director
October 26, 2011
Ms. Tracey Wheeler
U.S. Army Corps of Engineers
Washington Regulatory Field Office
P.O. Box 1000
Washington, NC 27889-1000
Re: Pancho Stream and Wetland Mitigation Bank
Final Prospectus
Wayne County
DWQ #10-0099
The Division of Water Quality (DWQ) has reviewed the Final Prospectus for the above-
referenced site.
Dee Freeman
Secretary
DWQ personnel visited this site several years ago when the site was being proposed as a Neuse
Riparian Buffer site to the N.C. Ecosystem Enhancement Program (EEP) through the Full-
Delivery Program. In general, the site appeared to be a good candidate for stream restoration.
Based on the information presented in the Final Prospectus, our comments are as follows:
• The Mitigation Banking Instrument (MBI) lists Ian McMillan as the signatory for DWQ.
Colleen Sullins, Director of the Division of Water Quality, signs all MBIs for DWQ.
The Final Prospectus states that the proposed Geographic Service Area (GSA) for the
bank is all of the Upper Neuse eight-digit Hydrologic Unit (HUC 03020201). The bank
is located within the Rolling Coastal Plain ecoregion. The proposed GSA includes six
Level IV ecoregions. Streams located within the Piedmont Level II ecoregion,
particularly the Triassic Basins and Carolina Slate Belt Level IV ecoregions, bear little
resemblance to streams within the Rolling Coastal Plain. DWQ questions the
appropriateness of mitigating for impacts to Piedmont streams at a Coastal Plain
mitigation site. Section 6 of the 2003 Interagency Stream Mitigation Guidelines lists
three criteria that are used for the selection of mitigation sites; Selection Criterion #3
states that "Mitigation should be performed within the same Physiographic Region...".
1650 Nlail Service Center. Raleigh. North Carolina 27699-1650
Location: 2321 Crabtree Blvd.. Suite 250, Raleigh, North Carolina 27604-2260 One
Phone: [phone] FAX[phone] Cuslomer Service: 1-877-623-6748 NorthCttI o11 n a
Internet: hitp:lih2o.enr.state.ne.us/newettands
An Equal Opportunity I Affirmative Action Employer Natlllurly
Ms. Wheeler
Pancho Stream and Wetland Mitigation Bank
Final Prospectus
Page 2 of 3
Due to the location of the site at the most downstream end of HUC 03020201, it may be
appropriate to limit the GSA to Johnston and Wayne Counties in 03020201 (Coastal
Plain portion of the HUC), and include HUC 03020202, which contains Level IV
ecoregions more similar to the setting in which the bank is located. Such a GSA would
result in more appropriate "in-kind" mitigation from the proposed bank.
The Prospectus describes construction of headwater streams in accordance with
Information Regarding Stream Restoration With Emphasis on the Coastal Plain (2007,
USACE and NCDWQ). If such features are determined to be appropriate and are
constricted on the site, performance criteria must include doeumentaiion of flow through
these headwater valleys. The 2007 document describes potential methods for
documenting flow. Appropriate success criteria must be developed and clearly described
in the Prospectus.
The proposed wetland hydrology success criteria range is 5% to 12%. Research
conducted by DWQ suggests that Coastal Plain Bottomland Hardwood wetlands
experience significantly longer periods of inundation and saturation. Dave Lekson
proposes in the most recent draft of Stream Mitigation Considerations On the Coastal
Plain of North Carolina that riparian wetlands associated with headwater (e.g. 151 or 2nd
order) streams should be intermittently inundated to seasonally saturated 12.5% to 25%
of the growing season under normal climactic conditions. Using 5% as a performance
standard does not take into consideration that vegetation is young and evapotranspiration
rates would be expected to increase once the trees attain larger size. Saturation or
inundation for only 5% of the growing season in on a recently-restored site may result in
an even shorter duration (non-wetland conditions) once the trees approach maturity.
DWQ recommends a minimum of inundation or saturation for 9% of the growing season
(consecutive days) under normal climactic conditions. Hydrology data from appropriate
reference wetlands (e.g. bottomland hardwood wetland and headwater forest in a similar
landscape setting as the site) should also be considered, especially during dry years.
DWQ does not agree with the proposal that if hydrology criteria are not met, then a
jurisdictional determination be performed as a determinant of success. The Prospectus
proposes to restore riparian wetlands (Bottomland Hardwood Forest and Headwater
Forest) and performance standards should evaluate the progress of the site toward the
proposed wetland types.
1650 Ivtail Service Center, Raleigh, North Carolina 27699-1650
Location: 2321 Crabtree Blvd. Suite 250. Raleigh, North Carolina 27604-2260 One
Phone: [phone] FRX: 919-733-6893 t Customer Service: 1-877-623-5748 North Cpl r of l n a
internet: tt cstate.ne Action cw l Nati fall ,
An Equal ualOpporpporlunityunity I ilfirmati:?ei:ctionEmployer Employer `[L J
Ms. Wheeler
Pancho Stream and Wetland Mitigation Bank
Final Prospectus
Page 3 of 3
DWQ requests justification for the alignment of Tributary 3 to flow parallel to the Main
Tributary. Was their on-site evidence that this stream feature historically followed this
path?
Please note that DWQ reserves the right to provide additional comments based on review of
detailed restoration plans.
Thank you for the opportunity to comment on this project. Please feel free to contact Eric Kulz
at [phone] or Ian McMillan at [phone] if you have any questions regarding this
project or our comments.
Sincerely,
?t l Ul ?
Karen Higgins, Supervisor
Wetlands, Buffers, Stormwater - Compliance & Permitting Unit
cc: File Copy (Eric Kulz)
Ian McMillan
Al Hodge - DWQ WaRO
1650 Mail Service Center, Raleigh, North Carolina 27699-1650
Location: 2321 Crabtree Blvd., Suite 250, Raleigh, North Carolina 27604-2260 One
Phone: [phone] FAX: [phone] l Customer Service: 1-877-623-6748 NorthCarolina
s Natl8l-roll J
Internet: I csta coon Ermpbyerployer 2 `IJ,!
An Equal Opportunity unity \ 1 Affirmative tive 6ve Acton E