20070747 Ver 1_FS_Non Compliant Debit_20120112

Strickland, Bev
From: Merritt, Katie
Sent: Thursday, January 12, 2012 12:48 PM
To: Strickland, Bev
Subject: FW: FSMB: Ledger Withdraw Notification
Attachments: FSMB 2012 -0001 Smithfield Packing Co, Ledger Jan. 12. 2012.pdf; FSMB 2012 -0001 CITY
OF KINSTON APPROVAL LETTER DEC. 14. 2011.pdf
Bev,
Please add the attached document and this email to 2007 -0747 in the Credit Ledger Folder. Please name that file
"FS—Non Compliant Debit ". Please provide me with a hard copy of this email and the attachments. I appreciate it0
Thank you,
Katie
From: Merritt, Katie
Sent: Thursday, January 12, 2012 12:45 PM
To: 'FlatSwampLLC
Cc: Higgins, Karen
Subject: RE: FSMB: Ledger Withdraw Notification
Hi Bob,
A formal response to the email message below is as follows:
DWQ did not approve the nutrient credit sale for the Smithfield Packing Company, Inc referenced in the email below
from you on January 12, 2012. This transaction was not compliant with the approved Mitigation Banking Instrument
(MBI)number 2007 -0747 issued to GreenVest /Flat Swamp, LLC (GV /FS) on June 15, 2009. We have recently been
discussing modifications to this MBI in order to bring the MBI up to today's standards. One of the purposed
modifications to the MBI is the following:
Remove the language from Item D of Section V that states, "No debits or credits to the ledger shall be made without the
written concurrence of the DWQ and GV /FS ".
This purposed modification and all other purposed modifications are not to be executed until all signatory authorities
have signed the MBI modifications. Until then, the MBI as written and approved on June 15, 2009 shall remain the
absolute agreement between DWQ and GV /FS.
DWQ feels that there was no intent by the Bank to deliberately debit credits from the bank without the approval of the
DWQ as required in the MBI. DWQ feels that there was a miscommunication about the date the modifications would
become effective and will allow for the debit made on January 12, 2012 for 4,805 Ibs -N to Smithfield Packing Co., Inc
located in HUC 03020202 to remain as a debit. However, please continue to follow the procedures outlined in the MBI
approved on June 15, 2009 until the purposed modifications have been submitted and approved.
Sincerely,
Katie
From: FlatSwampLLC [ mailto :FlatSwampLLCCa)comcast.net]
Sent: Thursday, January 12, 2012 11:50 AM
To: Merritt, Katie
Subject: FSMB: Ledger Withdraw Notification

Hi Katie,
In accordance with the proposed modifications associated with the conditions of the NCDWQ Mitigation Bank Instrument
number 07 -0747, issued to the GreenVest /Flat Swamp, LLC on June 15, 2009, we are submitting notification to the
NCDWQ of our Ledger transaction withdraw of 4,805 nutrient pounds for the project known as the Smithfield Packing
Company, Inc. facility, located at 178o Smithfield Way in the City of Kinston, North Carolina.
Attached is a copy of the Bank's Ledger indicating the withdraw and the letter from Mr. Steve Miller, PE, Water Resource
Manager with the City of Kinston dated December 14, 2011, appro -,ring the number of nutrient offset pounds required for
this project which is located in the Middle Neuse River Basin (CU03020202).
Please be advised that the 4,805 pounds of nutrient credits have been paid for in full by the client.
Should additional documentation be required for your records, please contact me.
Sincerely,
Robert N. Kessler
Director of Marketing
GreenVest /Flat Swamp, LLC
4405 Dewees Court
Raleigh, North Carolina 27612
Cell: 919.943.3374
Office: 800,910.5547
Fax: [phone]

December 14, 2*011
Ni Business Of Ele WO, trobeefing, �m(ftbrmW prvices,
pace PVbIirSM*eA thvig& cholfe,
.Mr. Vince Chirichella, IT
.CiarkNexsen
4000 Westcha:seBQIzeVatA Suite 2s0
Raleigh, North -Catalina :.27,607
RE, Smithfield Pacldng-Nitrogen Offset-Payment Confi mation.Utter
1
Dear Mr: Chirichak:
The Cky of Kinston has approved . the site plans rot the.conotrudtion', 4the abov,-6prbj.ect.on -Smithfield Way in
-.,)M 6a Waiim- Ott is Kinston
b Ad
Project'Mum go"61A.P40itig
Transaction SP11-008
Nttrient JnVGIVed.' Nitregov
Equatipir 4.94. jb/.4clyrx 87.65 acres x 30: years =. 4j.810 -5 Ibs
Location -CU-,- 0.3020202
Basedbn the review of-the plans,: this development must pay°-woffset paymmit to, mitigAte, this.inipact. Attached
in Nw _b a - w : azmitiga-fiaa bank in the hydiel ­ unit
is the current list. of Mitigation ban in dke- -w- Basin.. yo...Haw- -0 ogle
Jle,edobQw: lwill_ndsd toxeaei-ie-a--f6ceij*t.br--con6rivation from ihemiti -ad ba.nk-- _JCIjIV the Offset
.9 P4
payment beforea construction permit-can tie .issmed forthq,.Project!
Fiiia0y,,:th-e-Cit-y-6fKinston:deescharge.a.stonnwattr.utift.fee:to4deyeloped inside the city limits.
- . - . . - I . p3bPeaty
pro ...Jesisbase.do ... th -impenious area.of the -property- and is opp-enily $4
per equivaleat:residwtial =t (EFU), The - number of BRUs4s determined by dividing the total im,peirviouis area
by 3,059 square feet; -rounded UP to the nearest whole.punibur. The monthly stoxmwater utility bM for this
pr.op*y--wi.Ilbe$I,60G.Q_0-. A Wever, we do offer i=dits,to reduce the-utility fee for pTppertlies that are-inanaging
or treating storniwaterrmoff-or located outsi&watarshedsmaintamed by the city- To find Out-more about the
--credil,s, please -go --towwwj .nio�n 6blicsq-vJcesxo6w Ihave: attached acdpy-of-th-ect-e&t-fbrm,.-ff-needed.
if yo-u-&ve any :questions, yqp, can co me
Sincerely,
A- ssistqnt,Pubhc;Se Me&s Diredor
Rh
mda- IRA M-4 dk Publid gervkAs:Pirector
.Dama Kennedy, Permit Tedmician
Pek WC& 869.339. KIhsfdh,NoM Carotins 29502 939 3287 Fax
Q59Y 939-4279*_

3
d
\
z
£
J
a
§
]
�S (
■� #
/ƒ S
2J\/
/ ODa
)227
00 0
z
) )
I
e
\� \\
\ } \�\
o ;ear
}\z
�) &�§
_ƒfy
;§)§
-$))k
§ ©k$$
<zzzz
Hill
kE
\
�
]
3
■
/
$
k
()
J
\
\
■
a
/
\
�
!
G
fA
\
\
/
)
/
A
\k\
)
3f
%f
k(
aI
))
)k
�k
/J
§)\
R�ILL