20100408 Ver 1_DWR Response to EBX Seagrove Ltr_20140107

NCDENR
North Carolina Department of Environment and Natural Resources
Division of Water Resources
Pat McCrory
Governor
Cara Conder
EBX Neuse 1, LLC
909 Capability Drive, Suite 3100
Raleigh, NC 27606
Water Quality Programs
Thomas A. Reeder
Director
January T 2014
John E. Skvarla, III
Secretary
DWQ Projeci 4: 2 Gi(1 -0408
Johnston County
Re: Response to "Seagrove's Farm Buffer Transaction" letter from EBX
Dear Mr. Conder:
On January 7, 2014, Katie Merritt with the Division of Water Resources (DWR) received a letter
from you notifying DWR that EBX Neuse 1, LLC (EBX) accidentally failed to docr.nnent 29,529
square feet (ft) of Neuse 03020201 buffer mitigation credits that were paid for by Standard
Pacific of the Carolinas, LLC (SPC), on March 23, 2012, to satisfy a mitigation requirement for
the Seagrove's Farm project (DWR #2005 -1985) in Apex, NC. Additionally, EBX failed to
request their buffer authorization approval letter and did not give SPC an Affidavit documenting
proof of purchase for the mitigation credits.
At the time payment was received by SPC, the only two EBX mitigation banks that had available
Neuse riparian buffer mitigation credits, were Forrest Creek (DWR #2008 -0229) and Rudolf
(DWR #2010- 0408). However, due to the oversight described above, EBX does not have
enough Neuse riparian buffer mitigation credits in either of these two banks to debit the entire
29,529 ft2 of mitigation they agreed to provide for SPC.
Ms. Merritt performed a thorough investigation of the Seagrove's Farm project and determined
that the 401/ Buffer authorization letter dated December 21, 2005 authorized 29,529 ft 2 of
riparian buffer mitigation credit to be provided by the North Carolina Ecosystem Enhancement
Program (NCEEP), not EBX. Therefore, prior to any mitigation being provided by EBX to SPC
for this project, DWR must receive a 401/ Buffer authorization modification request in order to
get approval to use a private mitigation bank instead ofNCEEP to satisfy their mitigation
requirement.
401 and Buffer Permitting Unit
1650 Mail Service Center, Raleigh, North Carolina 27699 -1650
Location: 512 N. Salisbury St. Raleigh, North Carolina 27604
Phone: 919 - 807 -63001 FAX: [phone]
Internet: www.ncwaterquality.org
An Equal Opportunity 1 Affirmative Action Employer

EBX Neuse 1, LLC
January 7, 2014
Page 2 of 2
Once EBX receives a 401/ Buffer authorization from SPC authorizing the use of a private
mitigation bank to satisfy their mitigation requirement, EBX can proceed with the following:
• After receiving the next credit release for the Rudolf Mitigation Bank, the bank's
balance should be approximately 21,162 ft" of riparian buffer mitigation credits.
EBX may then transfer the remaining 8,367 ftz of riparian buffer credits needed,
from the Arrington Bridge Bank (DWR 92008- 1473v4) to the Rudolf Batik so
that !he total balance remainin; in the Rudolf Bank is 29,529 ft`.
• EBX shall debit 29,529 fe of riparian buffer credits from the Rudolf Bank for the
Seagrove's Farm project
• EBX shall provide an Affidavit to SPC for the mitigation and shall copy DWR on
the correspondence,
• No buffer credits shat l be provided by the Rudol [Bank to offset riparian buffer
impacts for other projects until this issue is resolved.
Please feel free to call Katie Merritt at (919) 807 -6371 if you have any questions regarding this
correspondence.
Sincerely,
Karen Higgins, Supervisor
401 and Buffer Permitting Unit
KAH/km
cc:File Copy (Katie Merritt)
Cherri Smith — DWR Raleigh Regional Office
Central Files to be filed with 2005 -1985