HomeMy WebLinkAbout20070747 Ver 1_2019 Credit Sale Audit Results-Non Compliant_20191127Strickland, Bev
From: EHI <ehi Ilc@comcast.net>
Sent: Wednesday, November 27, 2019 7:22 AM
To: Merritt, Katie
Cc: Haupt, Mac; Barrett Jenkins
Subject: [External] 2019 Credit Sale Audit Results -Non Compliant
Attachments: NCDEQ-FSMB-Nov 12 2019 Audit Review Adjustment NOC Ledger.pdf
• 1 External email. Do not click links or open attachments unless you verify. Send all suspicious email as an attachment to
ELort.spam@nc.gov
Hi Katie,
Thank you for taking the time to review the Banks Ledgers.
In response to you correspondence below. From 2010 to 2016 the banks Ledgers did not reflect sales or credit releases
from 2010 to their current date of sales (see 6/30/2016 Ledger). In 2017 NCDENR required all banks to have the same
Ledger format which was developed by NCDENR. The new format required banks to record credit releases and credits
sales from the 1st release of credits to the current sale.
When populating the information into the new Ledger format, that is when our Ledger reflected the two credit releases
in 2013 of 76,345.52 and 76,346.20, respectfully show as 2/25/2013 and 3/11/2013 entry in 2017. Attached are two
letter of release from NCDENR. In reviewing the two (2) letters, I agree their should have been only one credit release
entry. Additionally, when the new Ledgers were sent to the NCDENR for review and completeness, should that double
entry not have been recognized by NCDENR and corrected at that time, as that was the first time all of that information
was recorded on one Ledger.
Attached is the revised November 12, 2019 nutrient Ledger reflecting the February 25, 2019 entry adjustment of
76,345.52 credits for 33.59 acres adjustment as a result of the audit.
The GVFS, LLC and the bank credits have been purchased by Restoration Systems, LLC (RS) on November 13,
2019. Although RS is not responsible for compliance of the MBI, they are the owners of the banks credits and by
extension the bank site.
Bob
Robert N. Kessler
Managing Member
Environmental Heritage Investors, LLC
523 Turnberry Lane
St. Augustine, Florida 32080
C: 904.599.6600
-------- Forwarded Message--------
Subject:2019 Credit Sale Audit Results -Non Compliant
Date:Tue, 26 Nov 2019 19:33:05 +0000
From:Merritt, Katie <katie.merritt@ncdenr.gov>
To:EHI <ehi Ilc@comcast.net>
CC:Haupt, Mac <mac.haupt@ncdenr.gov>
Hey Bob,
I have finalized the Fall 2019 audit for the Flat Swamp Bank for credit sales from July 1, 2018-November 11, 2019. As a
result of this audit, DWR has determined that the Nitrogen Credit Ledger is in non-compliance.
According to the memo from you (attached to this email) dated November 12, 2019, the Flat Swamp Mitigation Bank is
noted to be in the final stages of being purchased; therefore, I chose to do a quick look of all the Flat Swamp Bank's
ledgers from 11/30/2009 to 11/11/2019 just to make sure everything appeared in compliance on surface. In doing so, I
discovered a major error on your Nitrogen Nutrient ledger submitted with this fall 2019 audit. On February 25, 2013,
you back dated a Credit in the amount of 76,345.52 lbs. It appears to have been backdated after the 2017 credit sale
audit, which concluded in Then, you credited a second release on 3/11/13 in the amount of 76,346.20 lbs. The credit
release letter for 3/11/13 is attached to this email, and clarifies that this letter REPLACES the release letter on
2/25/13. Therefore, there should not have been a credit of 76,345.52 lbs on 2/25/13.
I looked back at the 2013, 2014, 2015 & 2016 audits and documented my findings of each audit below:
• 2013 Audit — 2013 compliant audit letter and approved ledger is attached. Email correspondence from you
dated July 12, 2013 with the ledger approved in the audit is attached to this email. The credit release on
2/25/13 was not shown on the approved 2013 ledger and was deemed compliant. That ledger balance was
approved at 666,432.49 lbs
• 2014 Audit - January 23, 2014 compliant audit letter and the approved Nitrogen ledger from that audit are
attached. The credit release on 2/25/13 was not shown on the approved 2014 ledger and therefore your 2014
credit sale audit was deemed compliant. The ledger balance was approved at 664,557.41 lbs.
• 2015 Audit — The Nitrogen ledger approved with the 2015 audit is attached to this email. The credit release on
2/25/13 was not shown on the approved 2015 ledger and therefore your 2015 credit sale audit was deemed
compliant. That ledger balance was approved at 737,041.51 lbs.
• 2016 Audit — The September 27, 2016 compliant email along with ledgers approved with the 2016 audit is
attached to this email. The credit release on 2/25/13 was not shown on the approved 2016 ledger, the
balances add up as if the Credit was not part of the balance, and therefore your 2016 credit sale audit was
deemed compliant. That ledger balance was approved at 729,029.45 lbs for June 22, 2016.
• 2017-2018 Audit (This audit recently concluded in March 2019). The Nitrogen ledger submitted with this audit
is attached. The credit release transaction from 2/25/13 was shown on this ledger submitted with the
audit. However, the discrepancy did not fall within the 2017 -2018 audit review time period, which is described
in the attached document and shown as being ONLY from July 1, 2017-June 30, 2018. Neither was it noted as a
discrepancy in the 2013, 2014, 2015 or 2016 audits to be an issue. Therefore, this transaction of 76,345.52 lbs-
Nitrogen is confirmed to have been added to the ledger after the 2016 audit was completed, resulting in a credit
balance of 76,345.52 pounds of Nitrogen more than it should be. Backdating sales or transactions after an audit
has been performed and completed, is unacceptable.
RESPONSE REQUIRED: Since it is confirmed that Flat Swamp, LLC backdated a Credit of 76,345.52lbs of Nitrogen Credits
on February 25, 2013, after having already concluded 4 credit sale audits where the Credit was not shown, FlatSwamp,
LLC is in non-compliance with Item G and 1 of Section V of the Mitigation Banking Instrument. Flat Swamp, LLC must
correct the Nitrogen ledger submitted with this audit to comply with the balances and transactions approved in the
previous 2013-2016 credit sale audits. It is Flat Swamp, LLC's responsibility to ensure that the final ledger submitted
with this audit is compliant with all sales and all credit releases.
All sales from the Flat Swamp Mitigation Bank must immediately cease, until DWR confirms that the Nitrogen credit
ledger is in full compliance.
Thank you,
Katie
Katie Merritt
Nutrient Offset & Buffer Banking Coordinator
401 & Buffer Permitting Unit
North Carolina Department of Environmental Quality
Office: 919-707-3637
Work Cell: 919-500-0683
Website: http://portal.ncdenr.org/web/wq/401bufferpermitting
512 N. Salisbury Street, Raleigh, NC 27620
1617 Mail Service Center, Raleigh, NC 27699-1617
Email correspondence to and from this address is subject to the
North Carolina Public Records Law and may be disclosed to third parties.
"Credits shown below are only for mitigation credits approved by the UMBI, BPDP, and As -Built.
GreenVest/Flat Swamp, LLC & Flat Swamp Mitigation Bank
Middle Neuse River Basin HUC 03020202 Nutrient Credit Ledger
Date Last Updated: November 12, 2019
DWR Bank Parcel Project #: 07-0747
Total Credits Released To Date: 839,807.4G
Sale/
Release Date Purchaser or % Credit Release Project w/ HUG #
Credits
Released/Available
Credits Debited/Sold
Gov't
Nutrient Credit Balance
to Bank
From Sank
Requiring
Pounds of
Nutrients Acres
Pounds of
Nutrients
Acres
Pounds of
Acres
1130109
50%
Nutrients
1111110
324,939.57 142.96
324,939.57
142,96
10%
64,987.91 28.59
389,927.48
171.55
2118110
Sidus Federal LLC
Sidus Federal 03020202
4112110
715.21
0.32
389,212.27
171,23 Greenville
Ample Storage LLC 03020202
874.8
0.38
388,377.47
170.85 Goldsboro
Q6110
AOF LLC
Comprehensive Wound Care 03020202
259.8
0.11
388,077.67
170.73 Kinston
102 10
James M. O'Donahue
O'Donahue Chiropractic Office 03020202
520.17
0.23
387,557,50
170.5 Greenville
U100
Sherif Lskander
Sherif Lskander Office 03020202
119.133
0.05
387,438.37
170.45 Goldsboro
Al8110
Tim Uppold
Brighton Academy 03020202
184.164
0.08
387,254.21
170.37 Goldsboro
Q300
Blue Mountain Enterprise
Blue Mountain Ent 03020202
129.36
0.06
3 77,124.85
170.31 Kinston
i402110
Kennneth D. Keeseeo
Respracare 03020202
i101110
Glandon Forest Equity LLC
Dollar General 03020202
171
0.07
386,953.85
170.24 Wayne Cty
1 VI)
JDL Investments LLC
JDL Investments LLC 03020202
76.67
0.03
386,874.18
170.2 Kinston
03111
Foss Enterprises Inc
Foss Recycling Inc 03020202
125.76
0.05
386,748.43
170.15 Kinston
103i11
J.L.Gudey
Security Mini Storage, Phase 111 03020202
385,51
0.17
386,362.92
169.98 Greenville
t03111
Lee Automotive Mgt.,lnc
Lee Hyundai of Goldsboro 03020202
20.93
0.01
386,341.99
169.97 Wayne Cty
103k11
Blizzard Storeage Facility
Buzzard Storage Facility 03020202
718.8
0,32
385,623.19
169.65 Goldsboro
11 t111
Release 10%
445.2
0.19
385,177.99
169.46 Kinston
128111
Missionary Baptist Church
Bear Ck Missionary Baptist Church 03020202
64,987.91 28.59
450,165,90
198.05
21111
Brown & Wood Inc
Brown & Wood Parking Lot 03020202
329.208
0.14
449,836.70
197,9 Goldsboro
10111
Mount Olive Pickle Company
Mount Pickle Distrubibon CnV 03020202
1,275.18
0.56
448,561.52 1
197,34 Greenville
27111
Pitt County Schools
Chicod Elementry School 03020202
833
0,37
447,728.52
196.97 Wayne Cty
23111
AAR Manufactuing, Inc
AAR Manufacturing, Inc 03020202
1,137.53
0.5
446,590.99
196.47 Pitt Cty
10111
Wise Development LLC
Social Security Admin Bldg 03020202
383.678
0.16
446,207.31
196.31 Goldsboro
10111
Wayne County Public Schools
Eastern Wayne Middle School 03020202
650.16
0.29
445,557.15
196.02 Goldsboro
i4111
The Wooten Company
Abby Gardens 03020202
1,375.23
0.6
444,181.92
195.41 Goldsboro
12/19/2011 Atlantic Medical Gp {Adj)
Atlantic Medical Gp. Bldg 03020202
446
0.19
443,735.92
195.22 Kinston
11112
Smithfield Packing Co. Inc
Smithfield Packing Co. Inc D3020202
162
0.07
443,573.92
195,15 Kinston
15112
Release 10°1°
4805
2,11
438,768.95
193.04 Kinston
20412
Highlands of Goldsboro
Highlands of Goldsboro 03020202
&4,987.91 28.59
21.63
M12
Coastal Transport Inc
Malloy Street Apartments 03020202
493.02
0.22
j503ff.011.84
21.41 Goldsboro
16112
Brinkley's Transmission
Brinkleys Transmision 03020202
252
0.11
221.3 Goldsboro
M12
Tri-City Construction Co.
Carquest-Grayson Landing 03020202
170.4
0.07
21.23 Kinston
3112
Mills Automotive Gp LLC
Mills Automotive Gp 03020202
287.22
0.13
502,554.22
221.1 Greenville
2112
Bank Modification
628.8
0.28
501,925.42
220.82 Goldsboro
M12
Construction Managers inc
VA Hospital D3020202
90,860.88 39.97
592,786,30
260.79
1112
EJ Pope & Sons Inc
Handy Mart 03020202
384,62
0.17
592.401.68
260.62 Goldsboro
532.73
0.23
591,868.95
260,39 Goldsboro
11106112
State Employee's Credit Union
11106/12
State Employee's Credit Union
11108112
Wayne Montessori School
12U0112
Riverside Animal Hospital
02125113
Release 10%
03111113
Release 10%
03111113
Release Adjustment
05114113
West Star Mini Storage
05121113
Park Hotels LLC
07129113
NC Eastern power Agency
08107113
Buzzard Mini Storage
1Z05113
BRP Properties, LLC
01113114
BRP Properties LLC
09124114
Brooks Mini Kinston LLC
06112114
Wal-mart Neighborhood Mkt
06112114
Wal-mart Stores E, LP
08101414
Smithfield Farmland Corp
08401114
Calaiber Builders LLC
11/04/14
Release 10%
04115115
Greenbrier Landing LP
04129/15
RHA Housing Inc
06118115
Vanguard Ventures LLC
08118115
Lochstone LP
0M26115
Sawyers Prop Mgt GP LLC
02114116
The Three J's Inc
OVM16
Colleena Properties LLC
03110116
Colleena Properties LLC
06101116
AMERCO Realestate Co
06122116
Andover Park LP
09101116
Glandon Forest Equity
01116117
Vanguard Ventures LLC
03101117
Lidl U. S. Operations LLC
03106117
Sawyer's Property Mgt GP LLC
5/1/2017 Moen Corporation
61912017
New River Mulch
6125117
Mission Foods
094607
Bill Clark Homes of Greenvifie
09121117
AAA Mini Storage
09125117
Wayne County Public Schools
10127117
Lyndon Steel Company LLC
1211 1\1 7
Komegay Prop & Invest, LLC
12119117
KAE Enterprise LLC
0112408
Pitt County (0001)
3/2212018
Wayne Cty ABC Board
411612018
The Wave of Glory, Inc.
4/20/20 88
Stockton Pointe LP
4/23/2018
Lagecy Firetower, LLC
5/21/2018
Cuyler Springs Assoc (17-7)
6/14/2018
Judson H. Blount III
7/612018
Clark Homes of Greenville
8/4/2018
Wayne County (0008)
912812018
Osboume Holdings LLC (09)
State Employee's Credit Union 03020202
State Employee's Credit Union 03020202
Wayne Montessori School 03020202
Riverside Animal Hospital 03020202
West Star Mini Storage 03020202
Hoiiday Inn Express 03020202
NCEMPA Greenvifie PSDG 03020202
Blizzard Mini Storage 03020202
Goldsboro Hotel 03020202
Goldsboro Hotel 03020202
Brooks Mini Kinston Storage 03020202
Walmart 4350 Hwy 70E. 03020202
Walmart 1144 Tommys (toad 03020202
Smithfield Packing Storage Area 03020202
Dxford Plantation 601 Oxford Blvd 03020202
Greenbrier Landing 03020202
Highlands of Goldsboro 03020202
Dollar General 03020202
Lochstone Apartments 03020202
Air U Trampoline Park1ECCATS 03020202
Deacon Jones Automotive GP 03020202
Affortable Storage 03020202
Precision Pfumbing Facility 03020202
Greenville U-Haul 03020202
Andover Park Apartments 03020202
Dollar General 03020202
Dollar General 03020202
LIDL Grocery Store 03020202
Air U Trampoline ParMECCATS 03020202
Moen Corporation 03020202
New River Mulch 03020202
Mission Foods Parking Lot Addition 03020202
Langston Farms Phase II 03020202
AAA Mini Storage 03020202
Meadow Lane Elmentry School 03020202
Kinston Steel Building 03020202
Commercial Bldg 03020202
20120 Vision Center03020202
Pitt County Animal Shelter 03020202
Wayne County ABC Store 03020202
The Wave of Glory, Inc. 03020202
Stockton Pointe Project 03020202
Legecy At Firetower Junction 03020202
Cuyler Springs Housing Associates 03020202
The Drake
I Villages-Section7 03020202
ape[ EMS Station 03020202
Inc 03020202
47E
436.1 i
253.E
9(
76,345.52 33,59
76,346.20 33.59
5.36 0.01
148.96
0.21
591,392.95
260.18
Kinston
0.19
590,966.78
269.99
Goldsboro
0,11
590,702.98
259.88
Goldsboro
0.04
590,612.98
259.84
Kinston
383.07
0.17
1863.28
0.82
11.8
0.01
5.57
0.01
588.19
0.26'
207.2
0.01
1,090.68
0.48
857,78
0.38
995
0,44
653.25
0,29
33.59
814
0.36
65.99
0.02
238.38
0.1
1148.4
0.5
504.63
0.01
666,958.50
293.43
743.304.70
327.02
743,299.34
327,01
743,150.38
326.95
Greenville
742,767.31
326.78
Goldsboro
740,904.03
325.96
Greenville
740,892.23
325.95
Kinston
740,892.17
325.94
Goldsboro
740,303,98
325.68
Goldsboro
740,096,78
325.67
Kinston
739,006.10
325.19
Goldsboro
738,148.32
324.81
Goldsboro
737,153.32
324.37
Kinston
736,500.07
324.08
Goldsboro
812,846.27
357.67
812.032,27
357.31
Goldsboro
811,966.28
357.29
Kinston
811,727.90
357.28
Goldsboro
810,579.50 356.78 Goldsboro
810,074.87 356.77 Pitf Cty
3,531.11
1.55
806,543.76 1
355.22 Goldsboro
90.49
0.04
806,453,36
355.18 Goldsboro
476.39
0.21
805,976.97
354.97 Goldsboro
486.25
0.21
805,490.72
354.76 Greenville
8661
0,38
804,624.72
354.38 Kinston
209.92
0,09
804,414.80
354.29 Goldsboro
204.6
0.09
804,210,20
354.2 Grenville
1,012.75
0.45
803,197.45
353.75 Goldsboro
48.76
0.01
803,148.69
353.74 Pitt Cty
1,701
0.74
801,44T69
353 Kinston
132.73
0.06
801,314.96
352.94 Greenville
1,191 0.75
932.25 0.41
200,41 0.09
879.64 1.27
744 0,32
16.77 0.01
157.72 0.07
236.25 0.1
147.42 0.06
40.49 0.02
909 0.4
2.495.17 1.1
515.84 0.23
459.29 0.2
376.46 0.16
49.5 0.02
152.5 0.07
799,523.96
352,15 Goldsboro
798,591.71
351.74 Greenville
798,391.30
351.65 Goldsboro
795,511.66
350.38 Goldsboro
794,767.66
350.06 Kinston
794,750.89
350.05 Wayne Cty
794,593.17
349.98 Greenville
794,356.92
349.88 Greenville
794,209.50
349.821 Goldsboro
794,169.01
349.8 Goldsboro
793,260.01
349.4 Kinston
790,764.84
348.3 Greenville
790,249.00
348.07 Goldsboro
789,789.71
347.87 Greenville
789,413.25
347,85 Greenville
789,363.75
347.83 Wayne Cty
789,211.251
347.21 Greenville
1012512018 The Three J's Inc
2/26/2019 The Wave of Glory - REFUND
2/28/2019 Old Firetower Place, LP
4/8/2019 Oxford Street
5/6/2019 AAA Mini Storage
1011712019 SXCW Properties II, LLC
11/12/2019 NCDEQ Audit adiustmenl
Devon Jones KIA 03020202
Full refund per DWR findings in audit 1/1812019
Old Firetower Race 03020202
Stonehenge Place 03020202
4AA Mini Storage 03020202
5am's Xpress Car Wash 03020202
for 2/25/2013 entry
1,332,14
0.59
787,879.11
346.]Goldsborc
0.02
787,919,60
346.Goldsborc
202.93
0.09
787,716.67
346.Greenville
253
0.11
787,463.67 346.44 Greenville
346.33
270.2
76,345,52
0.15
787,117.34
346.291
Goldsboro
0.12
786,847.14
346.17
Greenville
33.59
710,501.62
312.58
Audit