20120982 Ver 1_USFWS Comments_20121113

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United States Department of the Interior
FISH AND WILDLIFE SERVICE
Raleigh Field Office
Post Office Box 33726
Raleigh, North Carolina 27636 -3726
November 8, 2012
Mr Mickey Sugg
U S Army Corps of Engineers
Wilmington Regulatory Field Office
P O Box 1890
Wilmington, North Carolina 28402 -1890
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Subject Resource Management Service, LLC Town Creek Headwaters Mitigation
Bank Brunswick County, NC
Action ID #SAW- 2012 -01651
Dear Mr Sugg
This letter provides the comments of the U S Fish and Wildlife Service (Service) on the
October 31, 2012 Public Notice, requesting comments on the mitigation bank prospectus
for the Town Creek Headwaters Mitigation Bank (Bank), proposed by Resource
Management Service, LLC In the public notice, the Corps has made a determination that
there will be no effect to threatened and endangered species from the proposed project
The Service has reviewed the public notice and the mitigation bank prospectus for the
project These comments are submitted in accordance with the Fish and Wildlife
Coordination Act (FWCA) (48 Stat 401, as amended, 16 U S C 661 -667d) Comments
related to the FWCA are to be used in your determination of compliance with 404(b)(1)
guidelines (40 CFR 230) and in your public interest review (33 CFR 320 4) in relation to
the protection of fish and wildlife resources Additional comments are provided
regarding the District Engineer's determination of project impacts pursuant to Section 7
of the Endangered Species Act (ESA) of 1973, as amended (16 U S C 1531 -1543)
Project Area and Proposed Activities
The project area is a 1,691 -acre parcel, located north of Supply in the headwaters of
Lewis Swamp, Lewis Branch, and Tompkins Branch The parcel is adjacent to The
Nature Conservancy's Green Swamp Preserve The site has been historically managed
for silviculture, and contains roads and a network of drainage ditches The project site is
located in the Lower Cape Fear watershed (03030005), and is relatively close to the
boundaries of the Waccamaw River watershed (03040206) and the Carolina Coastal
Sampit watershed (03040207) We note that the prospectus states that the site is located

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within the Lower Cape Fear watershed and the Waccamaw River watershed The
location of the site with respect to hydrologic units should be clarified
The project sponsor proposes to restore approximately 774 acres of non - riparian
wetlands, 18 acres of riparian wetlands, and 4,100 linear feet of stream, and enhance
approximately 397 acres of non - riparian wetlands Preservation is proposed for
approximately 127 acres of riparian wetlands and 13,893 linear feet of stream The
sponsor proposes to harvest the loblolly trees, plug and /or backfill existing ditches and
replant the site with wetland vegetation as needed For the stream restoration project, the
sponsor proposes to conduct a Priority 1 stream restoration within the upper reaches of
Lewis Swamp and Tompkins Branch
The proposed Geographic Service Area (GSA) includes the entire boundaries of five (5)
separate 8 -digit hydrologic units: 03030005 (Lower Cape Fear River), 03030006 (Black
River), 03030007 (Northeast Cape Fear River), 03040206 ( Waccamaw River), and
03040207 (Carolina Coastal Sampit)
Federally Protected Species
The Service has reviewed available information on federally- threatened or endangered
species known to occur in Brunswick County Rough - leaved loosestrife (Lysimachia
asperulifolia) occurs within two miles of the project area Rough - leaved loosestrife is an
erect, rhizomatous perennial, 1 -2 feet tall The plant has whorled leaves and five- petaled
flowers, which are clustered along the top of the main stalk. The plant typically flowers
from May to June Seeds are encased in a rounded capsule, and present from July to
October. Habitat for this species includes grass -shrub ecotones which are fire
maintained, adjacent to longleaf pine /scrub oak, pine savanna, flatwoods, and pocosms.
It requires disturbed areas where the overstory is minimal, and prefers moist to seasonally
saturated sand and shallow organic soil on top of sand, but may also grow on the deep
peat soils of Carolina Bays It has been found in roadside depressions, firebreaks, seeps,
and powerline rights -of -way that are maintained
Although rough - leaved loosestrife may be found on the site, it is not likely to be
adversely affected by the proposed restoration, enhancement, and preservation of pocosm
habitats on the site. A prescribed burning schedule for the site may prove beneficial for
the species However, we recognize that there may be logistical issues with burning sites
Service Concerns and Comments
In accordance with the Endangered Species Act of 1973, as amended (ESA), and based
on the information provided, and other available information, it appears that the action is

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not likely to adversely affect federally listed species or their critical habitat as defined by
the ESA We believe that the requirements of Section 7(a)(2) of the ESA have been
satisfied for this project Please remember that obligations under the ESA must be
reconsidered if (1) new information identifies impacts of this action that may affect
listed species or critical habitat in a manner not previously considered, (2) this action is
modified in a manner that was no considered in this review, or, (3) a new species is listed
or critical habitat determined that may be affected by the identified action
According to Figure 3 ( "Hydrologic Features RMS Bank Site "), the upper ends of Lewis
Swamp and Tompkins Branch are proposed as potential stream restoration reaches
However, it appears from Figure 2 ( "Existing Forested Conditions ") that a portion of the
Lewis Branch restoration reach is located in an area of natural hardwoods Further,
Figure 9 ( "Proposed Site Conditions ") shows the upper end of Lewis Swamp as a
proposed area of wetland preservation The current and proposed condition for this area
should be clarified Also, we recommend that the stream restoration reach exclude areas
with relatively mature trees If the wooded buffer in the forested reach is narrower than
50 feet on each side, the buffers may be widened for enhancement credit Also, any
stream preservation reaches which do not include a 50 -foot buffer on each side should
receive reduced mitigation credit
According to the public notice, the ditches and streams on the site drain to the east to
either Lewis Swamp or Tompkins Branch (which are in the 03030005 Lower Cape Fear
watershed) The prospectus provides no specific information on the drainage network
and the direction of flow across the site We do not believe it is appropriate to include
the Waccamaw watershed, Carolina Coastal Samprt, Northeast Cape Fear River, and
Black River watersheds in the GSA It is unlikely that the proposed work on this site
would have any functional benefits to those watersheds Based on the information
provided in the prospectus, we recommend that the GSA be limited to the Lower Cape
Fear watershed (03030005). Also, we stress that the site should only be accepted as
mitigation for non - riparian and riparian wetlands, which are unlikely to be found east of
the AIWW

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Y
The Service appreciates the opportunity to comment on this public notice We look
forward to reviewing a more specific draft mitigation plan and draft Mitigation Banking
Instrument (MBI), and to working with the other agencies in the review of this mitigation
bank If you have questions regarding these comments, please contact Kathy Matthews
at 919 - 856 -4520, ext. 27 or by e -mail at <kathryn_matthews @fws gov >
Sincerely,
4�L
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Peter Benjamin
Field Supervisor
cc
Jeffrey Garnett, EPA Region 4, Atlanta, GA
Fritz Rohde, NOAA Fisheries, Beaufort
Maria Dunn, NC Wildlife Resources Commission, Washington
Steve Sollod, NC Division of Coastal Management, Raleigh
Eric Kulz, NC Division of Water Quality, Raleigh