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Home My WebLink About20040895 Ver 1_Other Agency Comments_20110706 (2)ti rfc STars uv r: tr` IN REPLY REFER TO Regulatory Division DEPARTMENT OF THE ARMY WILMINGTON DISTRICT, CORPS OF ENGINEERS Washington Regulatory Field Office Post Office Box 1000 Washington, North Carolina 27889 -1000 June 30, 2011 Va,a R D `t Action ID SAW- 2003 -10795 / Nahunta Swamp Wetland and Stream Mitigation Site Mr. Norton Webster Environmental Banc and Exchange, LLC 909 Capability Drive, Suite 3100 Raleigh, North Carolina 27606 Dear Mr. Webster: This correspondence is in reference to the Neu -Con Umbrella Wetland Mitigation and Stream Restoration Bank (Bank) and specifically the associated Nahunta Swamp Wetland and Stream Mitigation Site ( Nahunta) that Environmental Banc & Exchange (EBX), LLC, is developing off of Big Daddy's Road, adjacent to Nahunta Swamp, east of Pikeville, in Wayne County, North Carolina. The purpose of this correspondence is to address outstanding issues associated with the close out of the Nahunta project. This correspondence also confirms our telephone conversation on June 29, 2011. Also in attendance were Mr. William Wescott of my staff, and Mr. Daniel Ingram of WK Dickson. Pursuant to the Mitigation Banking Instrument (MBI) governing the Bank and the Nahunta project, at the end of the five year monitoring period, seventy -five percent (75 %) of the Bank's total restoration credits would be available for sale upon the documentation of acceptable survival and growth of planted vegetation and attainment of acceptable wetland/stream hydrology. The final twenty -five percent (25 %) of the Bank's restoration credits would be available for sale only upon a determination that, the site meets the overall objectives and success criteria as set forth in the site specific mitigation plan for Nahunta. Pursuant to your written request of May 31, 2007, the North Carolina Interagency Review Team ( NCIRT) is considering the release of the following percentage of credits from the Nahunta project: a) 75% of the projected wetland restoration credits, b) 75% of the projected stream restoration credits, and c) 100% of the confirmed wetland preservation credits. This will provide the Bank with salable credits while the NCIRT works with you to determine the final credit structure of the Nahunta project. Official correspondence releasing these credits will be provided to you upon your submission and NCIRT review of a) The Year 5 monitoring report for the Nahunta project, and b.) Accurate acreage figures and appropriate wetland determination data forms for the Nahunta preservation area. ie This correspondence also confirms my May 25, 2011, onsite meeting with you, Mr. Ingram, and Mr. Ely Perry of EBX to evaluate hydrology issues associated with the Tapp and Gonder tracts of the Nahunta project. On June 1, 2009, the Corps received from you the document entitled, Nahunta Mitigation Project, Wayne County, North Carolina, Hydrology Assessment Report, May 2009, intended to justify the establishment of a boundary between successful and unsuccessful hydrology monitoring wells at Tapp and Gonder. At our May 25 meeting, you provided me with another document entitled Nahunta Mitigation Project, Wayne County, North Carolina, Hydrology Assessment Report, May 2010, (Updated May 2011), that included additional monitoring well data from the years 2007, 2010 and the first part of 2011. As discussed, you must submit the following information before the NCIRT can move forward 'with close out of the Nahunta project: 1. Submit the appropriate wetland determination data forms and accurate acreage figures for the Nahunta Preservation area. 2. Submit the Year 5 monitoring report (two hard copies and one electronic copy). I will immediately disseminate the report to the NCIRT for review and comment. 3. Via email dated May 25, 2011, you stated that you would provide the following information to me: a) "Credit release letter for 75% send to David Lekson and copy William Wescott (EBX) "; b) "State IRT Agenda request for August 9th meeting (EBB "; c) "All raw data files and field notes related to the Nahunta Hydrology Boundary - Tech Memo -05 -17 -2011 " (EBX/WK Dickson); and d) "Dates, attendee list, and any notes relating to all meetings and/or field visits by IRT members (EBA) ". To date, I have only received items a. and b. As discussed, please submit the remaining information as promised. 4. First and foremost, the success of any mitigation project is based in part on consideration of monitoring well data analyzed in the context of the prescribed hydrology success criteria (12.5% in this case). Toward that end, you collected and have submitted four years of monitoring data and are to submit the Year 5 report as requested above. Review of the 2010 Hydrology Assessment Report revealed that in an attempt to fine -tune the wetland restoration boundary between successful and unsuccessful monitoring wells on Tapp and Gonder, you installed seven (7) additional groundwater monitoring wells (three at Tapp and four at Gonder, respectively). This is problematic in that you are relying on only one or two years of well data to justify such an important decision. Adding to NCIRT concerns is that one of the wells malfunctioned providing no data to assist with this critical analysis and the success boundary was adjusted even though some of the additional well data was inconclusive and/or clearly did not meet the success criteria. Furthermore, you did not coordinate the placement of these wells with the NCIRT and these additional wells were not installed pursuant to approved standards in effect since 2005 (ERDC Technical Note 05 -02, Technical Standard for Water -Table Monitoring of Potential Wetland Sites) rendering data collected from these wells suspect at best. As discussed, if you wish to utilize these seven additional wells to assist with demarcating the successful /unsuccessful boundary, you must ensure that they remain functional and continue collecting data from all of the wells across the Tapp and Gonder tracts, submitting yearly reports to the NCIRT until such time that enough reliable information collected during periods of normal precipitation has been presented such that a final decision can be rendered. All analyses associated with any continued well monitoring on Tapp and Gonder will be based on the 12.5% hydrology success criteria. 5. Submit the soil profile information collected at the seven new monitoring well locations on the Tapp and Gonder tracts. Analysis of this information will reveal whether or not the wells should be reinstalled pursuant to ERDC Technical Note 05 -02. Should you decide to reinstall these wells (or add any more) you must coordinate with the NCIRT to ensure that they are appropriately placed. 6. Submit the hydrographs and raw gauge data collected during the year 2010 for all monitoring wells presented in Table 1 of the 2010 Hydrology Assessment Report. 7. Submit the most up to date hydrographs and raw gauge data collected during the year 2011 for all monitoring wells presented in Table 1 of the 2010 Hydrology Assessment Report. 8. As discussed, the Kriging methodology has been determined by the NCIRT to be an acceptable tool to assist with evaluating the boundary between successful and unsuccessful hydrology monitoring wells. However, you have provided no specific data supporting your calculations used to demarcate the proposed boundary on the Tapp and Gonder tracts. Additionally, the assessments and maps you presented in both the 2009 and 2010 Hydrology Assessment Reports are based primarily on 7% hydrology. As discussed, you must re- calculate the boundary based solely on the 12.5% hydrology success criteria as stipulated in the final mitigation plan. You must undertake and submit two (2) separate Kriging calculations: a) the first based on the data collected from the originally installed monitoring wells (before the seven additional wells were installed), and b) the second based on the data collected from the originally installed monitoring wells plus the new wells. You must also submit a narrative description of the type of Kriging methodology used, including the specific formula(s), all input data, and any other pertinent information utilized to re -draw the successEWunsuccessful boundary line. You must then prepare and submit a draft map of the Tapp and Gonder tracts depicting the successful/unsuccessful boundaries based on this 12.5% hydrology analysis. The NCIRT will review this information and notify you as to its acceptability in assisting with the evaluation of these boundaries on Tapp and Gonder, or if any additional information or analysis is needed. 1 9. Once the above information has been reviewed and the final successful/unsuccessful boundary approved by the NCIRT, you will then take that information and generate final acreage figures by mitigation type (i.e., restoration, enhancement, preservation) for all Nahunta properties protected by conservation easement. The NCIRT will review this information and provide you with official correspondence documenting the final credit base for the Nahunta project. As we discussed in detail, it is very important to clarify that even though the North Carolina Department of Transportation (NCDOT) and the North Carolina Ecosystem Enhancement Program (NCEEP) are associated with this project, the Nahunta Swamp Wetland and Stream Mitigation Site is part of the official Neu -Con Umbrella Wetland Mitigation and Stream Restoration Bank and as such, Nahunta is totally and completely governed by the existing mitigation banking instrument. The U.S. Army Corps of Engineers, Wilmington District is the NCIRT chair and lead signatory agency on the MBI and is responsible for tracking all credits debited from the Bank. Accordingly, please reference the subject MBI, in toto, and specifically Section IV,, Operation of the Bank G. Crediting /Debiting and Accounting Procedures, to ensure that you provide all required information to the Corps in concert with the terms and conditions of the MBI. All debits from the Nahunta Swamp Wetland and Stream Mitigation Site and the Neu - Con Umbrella Wetland Mitigation and Stream Restoration Bank as a whole, must be appropriately reported pursuant to the MBI. Thank you for your time and cooperation. Once you have submitted the information requested above, the Corps with lead the NCIRT through final evaluation of the Nahunta project. 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 http • / /reaulatory.usacesurvey.rom/. If you have'any questions, please contact me at the Washington Regulatory Field Office, telephone (910) 251 -4595. Sincerely, __ �4 David M. Lekson, P.W.S. Chief, Washington Regulatory Field Office Copies Furnished: Ms. Becky Fox Wetlands Regulatory Section - Region IV United States Environmental Protection Agency 1307 Firefly Road Whittier, North Carolina 28789 Mr. Pete Benjamin U.S. Fish and Wildlife Service Fish and Wildlife Enhancement Post Office Box 33726 Raleigh North Carolina 2763 6-3 726 Mr. Ron Sechler National Marine Fisheries Service Pivers Island Beaufort, North Carolina 28516 Mr. John Dorney Division of Water Quality North Carolina Department of Environment and Natural Resources 1650 Mail Service Center Raleigh, North Carolina 27699 -1650 Ms. Tammy Hill Division of Water Quality North Carolina Department of Environment and Natural Resources 1650 Mail Service Center Raleigh, North Carolina 27699 -1650 Mr. David Cox North Carolina Wildlife Resources Commission 1142 Interstate 85 Service Road Creedmoor, North Carolina 27522 -9159 Mr. Steve Sollod Division of Coastal Management North Carolina Department of Environment and Natural Resources 400 Commerce Avenue Morehead City, North Carolina 28557 Mr. Daniel Ingram WK Dickson and Company, Inc. 720 Corporate Center Drive Raleigh, North Carolina 27607 Mr. Michael Ellison Ecosystem Enhancement Program North Carolina Department of Environment and Natural Resources 1652 Mail Service Center Raleigh, North Carolina 27699 -1652 Gregory J. Thorpe, Ph.D. Environmental Manager\Director Project Development and Environmental Analysis Branch N.C. Department of Transportation 1548 Mail Service Center Raleigh, North Carolina 27699 -1548