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Home My WebLink AboutNegative Balance Notification & Resolution_EvansBallahackFrom:Merritt, Katie To:Salina Campbell; Becker email; Trisha Crawford Cc:Bobby Ham; Hartshorn, Blake; Goss, Stephanie Bcc:Huisman, John Subject:FW: [External] Fw: Negative Credit Sales for Ballahack- NON COMPLIANCE-ALL CREDITS ON HOLD 03020103 Date:Wednesday, June 7, 2023 2:07:00 PM Attachments:REFUNDCreditTransferCertificate_AutoRific_D1800147.pdf GES_EvansBallahack_NOCreditLedger_10MAR2023.pdf Hey Jeff & Salina (or Trisha), To satisfy the non-compliance of overselling Phosphorus nutrient offset credits from the Ballahack mitigation bank, please follow the directions below based on the March 2023 Ballahack credit ledger which is attached to this correspondence. The credit ledgers submitted by GES for the Baldwin Swamp Bank and the Ballahack Bank in May and June are not in compliance with the directions below, and therefore DWR has deleted those ledgers off the website until compliance has been met. GES needs to address the issues below and update all credit ledgers accordingly. BALLAHACK PHOSPHORUS LEDGER 1. GES must issue a FULL REFUND to the permittee for the Farrington Trace Senior project in the amount of 58.60 lbs of phosphorus credits. Add a line item to the Ballahack Phosphorus ledger dated 6/7/2023. Add the purchaser Name. For Project Name, enter: Farrington Trace Senior – FULL REFUND for non-compliant credit sale dated 12/13/2022. Under the “CREDITS RELEASED/AVAILABLE” column, enter 58.60 lbs and update the credit balances accordingly. Create a new Mitigation Credit Transfer Certificate, dated 6/7/2023 to the permittee, documenting the FULL REFUND of 58.60 lbs of Phosphorus credits. I have attached an example of a REFUND MCTC for you to use when drafting yours. This is not the exact template you should use, but gives you a good example to start with. Indicate, that the 58.60lbs of Phosphorus will be debited from the GES Baldwin Swamp Mitigation bank instead and that a new MCTC will be issued documenting that sale. Make sure to state that the Nitrogen offset credits purchased are not being refunded, just the P credits. Once you have finalized the new MCTC, send it to the permittee, the local government contact (City of Greenville) and to me along with the corrected Credit Ledger. 2. GES must issue a FULL REFUND to the permittee for the Pitt County Sherriff’s Office’s project in the amount of 120.00 lbs of phosphorus credits. Add a line item to the Ballahack Phosphorus ledger dated 6/7/2023. Add the purchaser Name. For Project Name, enter: Pitt County Sherriff’s Office – FULL REFUND for non-compliant credit sale dated 1/10/2023. Under the “CREDITS RELEASED/AVAILABLE” column, enter 120.00 lbs and update the credit balances accordingly. Create a new Mitigation Credit Transfer Certificate, dated 6/7/2023 to the permittee, documenting the FULL REFUND of 58.60 lbs of Phosphorus credits. I have attached an example of a REFUND MCTC for you to use when drafting yours. This is not the exact template you should use, but gives you a good example to start with. Indicate, that the 58.60lbs of Phosphorus will be debited from the GES Baldwin Swamp Mitigation bank instead and that a new MCTC will be issued documenting that sale. Make sure to state that the Nitrogen offset credits purchased are not being refunded, just the P credits. Once you have finalized the new MCTC, send it to the permittee, the local government contact (City of Greenville) and to me along with the corrected Credit Ledger 3. Ending credit balance on the Ballahack Phosphorus ledger should be 2.37 lbs for date 6/7/2023 BALDWIN SWAMP LEDGER 1. GES is authorized by DWR to sell 58.60 lbs of phosphorus credits to the permittee for the Farrington Trace Senior project. Add a line item to the Baldwin Swamp Phosphorus ledger dated 6/7/2023. Add the purchaser Name. For Project Name, enter: Farrington Trace Senior – debited per DWR findings in audit 6/7/2023 for noncompliant credit sale on Ballahack ledger”. Under the “CREDITS DEBITED” column, enter 58.60 lbs and update the credit balances accordingly. Create a new Mitigation Credit Transfer Certificate, dated 6/7/2023 to the permittee, documenting the credit sale of 58.60 lbs of Phosphorus credits. Once you have finalized the new MCTC showing the sale from the Baldwin Swamp phosphorus credit ledger, send it to the permittee, the local government contact (City of Greenville) and to me along with the corrected Credit Ledger. 2. GES is authorized by DWR to sell 120 lbs of phosphorus credits to the permittee for the Pitt County Sherriff’s Office’s project. Add a line item to the Baldwin Swamp Phosphorus ledger dated 6/7/2023. Add the purchaser Name. For Project Name, enter: Pitt County Sherriff’s Office– debited per DWR findings in audit 6/7/2023 for noncompliant credit sale on Ballahack ledger”. Under the “CREDITS DEBITED” column, enter 120 lbs and update the credit balances accordingly. Create a new Mitigation Credit Transfer Certificate, dated 6/7/2023 to the permittee, documenting the credit sale of 120 lbs of Phosphorus credits. Once you have finalized the new MCTC showing the sale from the Baldwin Swamp phosphorus credit ledger, send it to the permittee, the local government contact (City of Greenville) and to me along with the corrected Credit Ledger. Thank you for your cooperation. As a reminder, DWR needs corrected ledgers for Ballahack & Baldwin Swamp along with new MCTC documents for the 4 new transactions (2 REFUND MCTCs + 2 DEBIT MCTCs) Katie Katie Merritt Nutrient Offset & Buffer Banking Coordinator 401 & Buffer Permitting Unit North Carolina Department of Environmental Quality Office: 919-707-3637 Work Cell: 919-500-0683 Website: https://deq.nc.gov/about/divisions/water-resources/water-quality-permitting/401-buffer- permitting-branch NEW EMAIL!! katie.merritt@deq.nc.gov 512 N. Salisbury Street, Raleigh, NC 27620 1617 Mail Service Center, Raleigh, NC 27699-1617 Email correspondence to and from this address is subject to the North Carolina Public Records Law and may be disclosed to third parties From: Jeff Becker <jrbecker@bellsouth.net> Sent: May 24, 2023 1:35 PM To: Merritt, Katie <katie.merritt@deq.nc.gov> Cc: Salina Campbell <salina@hamfarms.com>; Trisha Crawford <trisha@hamfarms.com> Subject: Re: Negative Credit Sales for Ballahack- NON COMPLIANCE-ALL CREDITS ON HOLD 03020103 I will look into this problem immediately and we will correct the problem.. As our ledgers indicate we have more than enough phosphors credit in TP 03 toc cover nay accounting error. We will explain and correct.. Sorry for the mix up.. hope you are doing well On Wednesday, May 24, 2023, 12:48:42 PM EDT, Merritt, Katie <katie.merritt@deq.nc.gov> wrote: Hey Jeff, Attached, are the March credit ledgers received for the Ballahack Bank. Please explain why Greene Environmental Services, LLC (GES) has a negative balance of Phosphorus Credits (-176.23 lbs). It appears that GES has sold more phosphorus credits than what has been released to sell. This needs to be addressed immediately with an explanation and a proposed resolution provided to me in writing within 5 business days. As of today, May 24, 2023, and until this matter is resolved, GES is required to cease the selling of Phosphorus nutrient offset credits from the following GES Banks located in the 03020103 HUC of Tar-Pamlico: Baldwin Swamp, Barlow Canal, Evans Ballahack, Pactolus Your prompt attention to this matter is appreciated. Thank you, Katie Katie Merritt Nutrient Offset & Buffer Banking Coordinator 401 & Buffer Permitting Unit North Carolina Department of Environmental Quality Office: 919-707-3637 Work Cell: 919-500-0683 Website: https://deq.nc.gov/about/divisions/water-resources/water-quality-permitting/401-buffer- permitting-branch NEW EMAIL!!katie.merritt@deq.nc.gov 512 N. Salisbury Street, Raleigh, NC 27620 1617 Mail Service Center, Raleigh, NC 27699-1617 Email correspondence to and from this address is subject to the North Carolina Public Records Law and may be disclosed to third parties. Email correspondence to and from this address may be subject to the North Carolina Public Records Law and may be disclosed to third parties by an authorized state official. This email has been scanned for spam & viruses. If you believe this email should have been stopped by our filters,click here to report it.