20070747 Ver 1_Mitigation Plan Review_20090218

LF-KWA
NCDENR
North Carolina Department of Environment and Natural Resources
Beverly Eaves Perdue
Governor
Mr. Scott Frederick
Greenvest/Flat Swamp, LLC
1001 Capability Drive, Suite 312
Raleigh, NC 27606
Division of Water Quality
Coleen H. Sullins Dee Freeman
Director Secretary
February 18, 2009
Re: Flat Swamp Mitigation Bank
Neuse Buffer and Nutrient Offset Mitigation Plan
Bank Parcel Development Package
Craven County
DWQ #07-0747
Dear. Mr. Frederick:
The Division of Water Quality (DWQ) 401 Oversight and Express Review Permitting Unit has reviewed the above-
referenced document, received by this Office on February 10, 2009. Our comments regarding the document are as
follows:
Proposed Restoration Activities (Page 4): Based. on Figure I 1 a provided by you via e-mail on January 27,
2009, the proposed mitigation site was to include buffer restoration along state-regulated streams, as determined
by DWQ in the field, and additional buffer restoration for the generation of nutrient offset credit. This is not the
same Figure 1 I a that is presented in the document. In addition, the above-referenced document describes
enhancement of streams through reconnection with adjacent riparian wetlands and restoring a functional
floodplain. The document goes on the state that "variations in the floodplain/bank/stream interface will be
established to encourage low-energy meandering".
It was our understanding through previous discussions that the existing stream features would be planted with
buffer; no in-stream work was described. Please clarify. In addition, this enhancement is subject to approval by
the Interagency Review Team (IRT). It should be noted that for any stream credit to be generated, the
conservation easement generally needs to encompass the riparian zone on both sides of a restored or enhanced
stream. It appears that the north side of the stream feature along the northern property boundary would not be
under the control of the bank Sponsor, as it is located on the adjacent property.
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] Customer Service: 1-877-623-6748 NorthCarohna
Internet: http:/lh2o.enr.state.nc.uslncwetlands
An Equal Opportunity 1 Affirmative Action Employer `f L
Mr. Frederick
Flat Swamp Mitigation Bank
Page 2 of 4
2/18/2009
• Table 3 (Page 5): The table indicates three planting zones, but does not indicate the acreage of each zone; these
are listed in the Table as "TBD". Please clarify.
Additionally, as an editorial note, this is the first table presented in the report; there are no Tables 1 or 2.
• Mitigation Potential (Page 6): Please clarify that Neuse riparian buffer credit is only being generated along
streams identified by DWQ as being subject to the buffer rules. Figure 11 a in the document differs from the
Figure l la sent on January 27, 2009 with respect to the origin of the streams.
• Credit Generation (Page 6): Please clarify that no square footage of restored buffer is being included in the
calculations for both nutrient offset and riparian buffer credit. Each square foot of buffer restored should be given
a value for either nutrient offset or riparian buffer credit (riparian buffer credit must be within 50 feet of the top of
bank on subject streams).
• Accounting (Page 6)/Ledger in Appendix VI: Two separate ledgers should be developed and maintained; one
for riparian buffer credit and one for nutrient offset credit. The same square foot of land shall not appear on both
ledgers. Also, please remove all references and accounting related to stream or wetland credits/debits. These will
be tracked by the US Army Corps of Engineers under a separate Mitigation Banking Instrument.
• Figures (Appendix I): Figures included in Appendix I are 1, 2, 3, l la, and 13. It is unclear if figures were
supposed to be included, but were inadvertently omitted in the document. Please clarify.
• Figure 11a: Please see above comments regarding this figure and the proposed activities at the site. Figure 1 la
in the document differs from the Figure 11 a sent on January 27, 2009 with respect to the origin of the streams.
• Example Conservation Easement: Please note that for any buffer credit to be released, a copy of the recorded
Conservation Easement will be required.
• Project Bonding: Please note that for any buffer credit to be released, demonstration of financial assurance in
the form of a Performance Bond will be required.
• Approved Mitigation Banking Instrument: This instrument was for the establishment of the wetland
mitigation bank, and has no relevance to the establishment of the proposed Neuse buffer and nutrient offset bank.
In addition, the proposed site development plans approved when this MBI was approved have changed
substantially. DWQ recommends that you contact your IRT chairperson to arrange for IRT review of the revised
site plans if you wish to pursue wetland mitigation credits for the site.
• Proposed DWQ Mitigation Banking Instrument (Page 1): the instrument describes restoration of a historic
coastal plain headwater system. This appears inconsistent with recent information provided by you regarding
establishment of a riparian buffer and nutrient offset bank. Please clarify.
• Proposed DWQ Mitigation Banking Instrument (Table 1- Credit Release Schedule): The credit release
schedule outlined in the MBI is not correct. Please use the following schedule:
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] Customer Service: 1-877-623-6748 NorthCarolina
Internet: http:/Ih2o.enr.state.nc.uslncwetlands ?aturallt?
An Equal Opportunity 1 Affirmative Action Employer
Mr. Frederick
Flat Swamp Mitigation Bank
Page 3 of 4
2/18/2009
Table I -Buffer Credit Release Schedule
Task Project Milestone % Credit
Available
for Sale
1 Mitigation Banking Instrument signed, BPDP Approved,
Conservation Easement or Restrictive Covenants Recorded
and Performance Bond Purchased 20
2 Mitigation Site. Earthwork, Planting and Installation of
Monitoring Devices Completed 20
3 Approval of As-Built Report an M i on Bond Purchased 10
4 Submit Monitoring Report #1 to DWQ (meets success criteria) 10
5 Submit Monitoring Report #2 to DWQ (meets success criteria) 10
6 Submit Monitoring Report #3 to DWQ (meets success criteria) 10
7 Submit Monitoring Report #4 to DWQ (meets success criteria) 10
8 Submit Monitoring Report #5 to DWQ (meets success criteria) 10
Total 100%
• Proposed DWQ Mitigation Banking Instrument (Page 5 - Procedures for Debiting or Crediting the Bank):
Two separate ledgers should be maintained; one ledger for riparian buffer credit (credit generated from 0 - 50 feet
from top of bank along streams subject to the Neuse buffer rules) and a second ledger for nutrient offset credit
(credit generated from 51 - 200 feet on streams or from 0 - 200 feet on ditches). When a credit release milestone
is achieved, credit will be released as riparian buffer credit (square feet) and nutrient offset credit (pounds N).
Should you wish to transfer credit from the riparian buffer ledger to the nutrient offset ledger, released riparian
buffer credit can be debited from the buffer ledger, converted to pounds of nitrogen, and added to the nutrient
offset ledger. Released credit cannot be transferred from the nutrient offset ledger to the riparian buffer ledger.
Proposed DWQ Mitigation Banking Instrument (Page 6 - Force Majeure): While Greenvest may not have
control of such events, if such an event occurs before the final sale of all credits, the Sponsor shall take remedial
action to restore the property to its condition prior to this event, in a manner sufficient to provide adequate
mitigation to cover credits that were sold prior to the occurrence of the event. Such remedial action shall be taken
by the Sponsor only to the extent necessary and appropriate, as determined by DWQ in order to offset authorized
impacts to buffers or to satisfy nutrient offset buydown requirements imposed during land development activities
and satisfied through payment into the Flat Swamp bank.
Please provide a response to these comments within 30 days of your receipt of this letter if you wish to proceed with the
establishment of this riparian buffer and nutrient offset bank.
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] Customer Service: 1-877-623-6748 NOrthCarOhna
Internet: http:llh2o.enr.state.nc.uslncwetlands ?atl?rall?
An Equal Opportunity 1 Affirmative Action Employer
Mr. Frederick
Flat Swamp Mitigation Bank
Page 4 of 4
2/18/2009
Please feel free to contact Eric Kulz at [phone] if you have any questions regarding this project or our comments.
Sincerely,
G
Cyndi B. Karoly, Program Manager
401 Oversight and Express Review Program
cc: File Copy (Eric Kulz)
Kyle Barnes - DWQ Washington Regional Office
Matt Matthews - DWQ Wetlands and Stormwater Branch
David Lekson - USACE Washington Regulatory Field Office
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] Customer Service: 1-877-623-6748 NorthCarolina
Internet: http:/Ih2o.enr.state.nc.uslncwetlands Naturally
An Equal Opportunity 1 Affirmative Action Employer