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Home My WebLink About20100408 Ver 1_Credit Sales Audit_20120802'F��1 rffiffiR i, North Carolina Department of Environment and Natural Resources Division of Water Quality Beverly Eaves Perdue Charles Wakild, RE. Dee Freeman Governor Director Secretary August 2, 2012 DWQ Project #: 2010 -0408 Johnston County Mr. Thomas Rinker EBX Neuse 1, LLC; Environmental Banc & Exchange, LLC; EBX -EM, LLC 10055 Red Run Blvd., Suite 130 Owings, MD 21117 -5822 Re: Audit of Credit Sales for Nutrient Offset Banks owned by EBX Dear Mr. Rinker: On July 20, 2012, Katie Merritt with the Division of Water Quality (DWQ) performed an audit of credit sales among all nutrient offset banks in North Carolina. Ms. Merritt contact both Martin Hovis and Matt Fisher to discuss concerns found in credit ledgers for nutrient offset banks owned by the following companies: Environmental Banc & Exchange, LLC (EBX); EBX Neuse 1, LLC (EBX); and EBX -EM (EBX). Ms. Merritt has not received a response from Mr. Fisher at this time. However, Ms. Merritt spoke to Mr. Hovis regarding a few sales transactions made from the Rudolf Bank Parcel in Johnston County that were not compliant with the EBX Neuse 1, LLC Umbrella Mitigation Banking Instrument (UMBI). During their discussion, Ms. Merritt had the following comments: • EBX shall not provide nutrient offset credits to a third party without having received a stormwater approval letter from the local government who is regtiiring the nutrient offset. This letter should be provided by the party requesting the offset credits. • It is the responsibility of EBX to ensure that all sales are done in compliance with the rules referenced in the Umbrella Mitigation Banking Instruments (UMBIs). If EBX is not requiring proof of nutrient offset need prior to approving the sale of credits from their nutrient offset banks, EBX cannot ensure that the sales are valid. • Up till now, DWQ has not required that EBX submit the stormwater approval letters with their credit ledgers and credit receipts due to the understanding that EBX was keeping a file of these letters and recording accurate information on their Affidavit of Credit Sale letters. • Until further notice, EBX must provide all of the stormwater approval letters received for each credit sale made after July 20, 2012 along with the corresponding credit ledgers and Affidavits of Credit Sale for each bank. • EBX will be required to refund any credits sold after July 20, 2012 that are not compliant with the UMBI. • If EBX is unsure about the validity of a sale for any reason, please contact Ms. Merritt prior to the sale. Wetlands, Buffers, Stormwater Compliance & Permitting Unit 1650 Mail Service Center, Raleigh, North - Carolina 27699 -1650 Location: Archdale Bldg., 512 N. Salisbury St, Raleigh, NC 27604 Phone: 919-807 -63001 FAX: 919 - 807 -6494 Internet: hftp: // portal. ncdenr .org /web/wq /swp/ws /webscape An Equal Opportunity 1 Affirmative Action Employer NorthCarolina Natura!!,ff EBX Neuse 1, LLC Page 2 of 2 August 2, 2012 Two items are attached to this letter. The first is the letter from the City of Durham regarding the need of nutrient offset for the EMC Data Center Amendment Phase 3 Modifications project. This letter states that the project is located in the Neuse /Lower Falls and there is no Hydrologic Unit Code stated in the letter. EBX sold credits from their Rudolf Nutrient Offset Bank, without knowing which HUC the project was located in. In addition, the Rudolf Nutrient Offset Bank is not located in the Falls Watershed (Upper or Lower). This sale was not in compliance with the UMBI. The Rudolf Bank is not an acceptable bank for selling nutrient offset credits in the Falls Watershed. The only bank EBX has that is acceptable for selling nutrient offset credits in the Falls Watershed is the Forrest Creek UT -2 Bank. The second attachment is Affidavit of Credit Sale for the project mentioned above. It states that the project is located in 03020201 of the Neuse River Watershed but does not state that the project is located in the Lower Falls Watershed. Please note that nutrient offset credits generated at the Rudolf Nutrient Offset Bank must be used for impacts in HUC 03020201 of the Neuse River Basin with the exception of the Falls Watershed. Please feel free to call Katie Merritt at (919) 807 -6371 if you have any questions regarding this correspondence. Sincerely, Karen Higgins, Supervisor Wetlands, Buffers, Stormwater, Compliance and Permitting Unit KAH/km Attachments: Affidavit of Credit Sale, Letter from City of Durham Dept. of Public Works cc: File Copy (Katie Merritt) Martin Hovis — EBX; 909 Capability Drive, Suite 3100; Raleigh, NC 27606 Matt Fisher — EBX; 909 Capability Drive, Suite 3100; Raleigh, NC 27606, u TV CITY OF DURHAM Department of Public Works Stormwater Services 101 City Hall Plaza I Durham, NC 27701 919.560.4326 1 F 919.560.4316 www.durhamnc.gov March 19, 2012 Via E -mail Mr. Ryan Akers, PE The John R.McAdams Company, Inc. P.O Box 14005 RTP, NC 27709 akers@,johnrmcadams.com RE: Neuse /Lower Falls Nutrient Management Strategy Payment for EMC Data Center Amendment Phase 3 Modifications PIN: 0747 -04 -51 -5603 ; PID: 157980 Durham City /County Planning Department Case Number: D1200030 Dear Mr. Akers: This letter is to serve as notice that proof of purchase is due for the nutrient credits to be purchased for the above referenced project in compliance with the City of Durham's Stormwater Performance Standards for Development. Project Name: EMC Data Center Amendment Phase 3 Modifications Local Government: City of Durham Local Government Transaction Number: D1200030 Basin: Neuse/Lower Falls HUC Code Nitrogen Loading to be Offset 49.22lbs Additional Nitrogen Loading to be Assigned to the City of Durham if nutrient bank is not within City limits 13.91 lbs* Total Nitrogen Offset to be Purchased 63.13lbs Phosphorus Loading to be Offset N/A Additional Phosphorus Loading to be Assigned to the City of Durham if nutrient bank is not within City limits N/A Total Phosphorus Offset to be Purchased I N/A Durham — Where Great Things Happen If DURHAM CITY OF DURHAM Department of Public Works Stormwater Services 101 City Hall Plaza I Durham, NC 27701 919.560.4326 1 F 919.560.4316 1 8 6 9 www.durhamnc.gov CITY Of MEMINE Please send a copy of the proof of purchase to the following address: City of Durham Public Works Department 101 City Hall Plaza 3rd Floor City Hall Durham, NC 27701 c /o: Raghavenderrao Badami, PE, CFM raahavenderrao.badam igdurhamnc.gov Also, the nutrient bank will need to furnish us with a copy of their credit ledger showing that these credits have been deducted from the bank's remaining available credits. The ledger should provide a breakdown for the Nitrogen Loading to be Offset for the project and additional Nitrogen Loading (if any) to be Assigned to the City of Durham if nutrient bank is not within City limits . *Note that the additional loading includes the 5% additional nitrogen loading offset for DI 100239 site plan, as the 5% additional loading was not offset with this site plan. You must comply with any other state or federal mitigation requirements for this project. This letter only deals with the nutrient credits to be purchased for the above referenced project (Site plan Case # D 1200030) in compliance with the City of Durham's Stormwater Performance Standards for Development. If you have questions concerning any aspect of the above, please feel free to call me at (919) 560 -4326, or email me at raghavenderrao .badamigdurhamnc.gov Sincerely, Raghavenderrao Badami, PE, CFM Civil Engineer Durham — Where Great Things Happen AFFIDAVIT OF CREDIT SALE TO: NORTH CAROLINA DEPARTMENT OF WATER QUALITY, and CITY OF DURHAM The undersigned, EBX Neuse I, LLC the Sponsor of the EBX Neuse Riparian Buffer Umbrella Mitigation Bank (DWQ Number 08- 1473), hereby certifies the following: (Rudolph DWQ Number 2010 -0408) 1. DPR Construction has deposited monies with the Sponsor sufficient to acquire 63.13 Nutrient Reduction Credits (pounds of Nitrogen) from the Bank for use on its EMC Data Center Phase 3 project, transaction number D1200030 in Durham, in HUC 03020201 of the Neuse River Watershed. 2. The EMC Data Center Phase 3 project requires a total of 63.13 Nutrient Reduction Credits as mitigation. Of this amount 63.13 Nutrient Reduction Credits are being provided by the Bank. 3. The Sponsor has deducted 63.13 Nutrient Reduction Credits from the Bank's credit ledger for HUC 03020201 of the Neuse River Watershed. A copy of the Bank's Credit ledger reflecting the above transaction is attached to this Affidavit. EBX Neuse I, LLC By: Ho *f) Date: 3 -21 -12