Joshua Creek Credit Sale Audit - Notice of Non Compliance

From: Merritt, Katie
To: Menefee -Dunn, Barbara A
Subject: FW: Joshua Creek Credit Sale Audit - Notice of Non Compliance
Date: Friday, August 4, 2023 3:06:22 PM
Attachments: 20230700 Ver 1 Approval Letter 20230728.pdf
230717 - Joshua Creek - Mitigation Credit Transfer Certificate - 2400 Turtle Bay.pdf
230717 - Joshua Creek Buffer and Nutrient Ledaer.odf
Please file this email thread (& the 3 attachments) into the folder in LF here:
WaterResources\DWR - Wetlands Program\Non DOT\Buffer & Nutrient Private Banks-
Ledgers\Audit 2021 & 2022 - Katie
Please combine both this email thread & the attachments into 1 PDF for the file. Leave the title
of the file, the same as the subject of this email:
Joshua Creek Credit Sale Audit - Notice of Non Compliance
Thank you,
Katie
From: Merritt, Katie
Sent: Friday, August 4, 2023 3:03 PM
To: [e-mail]
Cc: Goss, Stephanie <[e-mail]>
Subject: Joshua Creek Credit Sale Audit - Notice of Non Compliance
Good Afternoon Michael,
DWR has finalized the audit of riparian buffer and nutrient offset credit sales for the Joshua
Creek bank. The results of the audit are as follows:
Nitrogen Nutrient Offset ledger -no credit sales, ledger is compliant
Buffer Preservation Ledger - no credit sales, ledger is compliant
Buffer Restoration Ledger - ledger is not compliant
. 2400 Turtle Bay transaction is not compliant. (DWR Approval Letter and
corresponding MCTC is attached for reference)
1. The approval letter was issued July 28, 2023. However, the
transaction on the ledger and corresponding MCTC state the
credits were sold on July 17, 2023. Eco Terra, LLC cannot
sell credits until a permit/approval letter is issued by the
regulatory authority. Please explain why credits were sold
without first receiving the appropriate documentation and
what efforts Eco Terra will take to ensure this issue doesn't
happen in the future.
2. The Approval Letter issued by DWR does not indicate Joshua
Creek Mitigation Bank or "Eco Terra, LLC" as an acceptable
mitigation bank to satisfy the project's buffer mitigation

requirement. The Bank Sponsor cannot sell buffer credits
without the approval letter stating which mitigation bank
and/or Bank Sponsor the permittee can use to meet the
buffer mitigation requirement. Eco Terra needs to notify the
permit applicant/purchaser that they need to request a
modification to their approval letter with the appropriate
information added in order to process their buffer mitigation
credit request. Once the approval letter has been modified,
Eco Terra needs to provide this documentation in response
to this audit review.
3. The Approval Letter issued by DWR does not specify the 8-
digit Hydrologic Unit Code (HUC) where the buffer mitigation
needs to be mitigated. The Bank Sponsor cannot sell buffer
credits without the service area acknowledged in the
approval letter. The permittee is required to buy buffer
mitigation credits from the service area identified in their
approval letter. Eco Terra needs to notify the permit
applicant/purchaser that they need to request a
modification to their approval letter with the appropriate
information added in order to process their buffer mitigation
credit request. Once the approval letter has been modified,
Eco Terra needs to provide this documentation in response
to this audit review.
4. The Mitigation Credit Transfer Certificate is missing the
Permitted Project's permit ID#. This information needs to
always be included in the MCTC.
5. The Credit Ledger is missing the Permitted Project's permit
ID#. This information needs to always be included on the
ledger.
6. The Mitigation Credit Transfer Certificate refers to "buffer
mitigation units". The MBI for this bank is for "riparian
buffer credits". Please adjust the language accordingly on
future MCTC documents.
7. If the permittee does not supply Eco Terra with a corrected
approval letter or other written documentation from the
regulatory authority (DWR Washington Regional Office) with
the necessary information for Eco Terra to process this
transaction, then Eco Terra will be required to issue a Full
Refund for the credits. Directions on how to issue a refund
for this audit is provided below.

Directions for Issuing REFUNDS associated with this audit:
. Add a CREDIT transaction of 630.000 ft2 to the ledger and date it 8/4/2023,
which is the date that Eco Terra became aware of the audit results and the
non-compliance.
• The transaction needs to be documented on the ledger as follows:
o Merge the Purchaser column cell and the Project Name column cell into
one cell and state "2400 Turtle Bay, DWR ID# 2023-0700-Credited per
DWR findings in audit 814123 for noncompliant credit sale"
o Add the CREDIT as 630.000 ft2 and place in the "Credits
Released/Available to Bank" column
o Adjust balances accordingly.
o Create a new MCTC, dated 8/4/2023, to the permittee, documenting the
FULL REFUND of 630 ft2 of riparian buffer credits. Indicate that the
permitted project no longer has met their permit requirement for buffer
mitigation and that the permit will be non-compliance until the buffer
mitigation has been satisfied. This new MCTC serves as the official
receipt for the refund. Send the MCTC/Refund Receipt to the
purchaser/permit applicant and government entity. Copy DWR on all
correspondence related to this refund to the permit applicant and
government entity (DWR-Washington Regional Office)
Thank you for your cooperation with this credit sale audit. Provide a response to all comments
above via email on how Eco Terra has addressed each item of non-compliance. Once DWR has
received a response from Eco Terra, DWR can finalize the audit for the Joshua Creek mitigation
bank. When appropriate documentation is provided by the regulatory authority for the 2400
Turtle Bay project, Eco Terra will be authorized to sell the credits to the permit applicant.
Katie
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.

ROY COOPER
Governor
ELIZABETH S. BISER
Secretary
RICHARD E. ROCERS, JR.
Director
Raymond and Brenda Kolls
2400 Turtle Bay Drive
New Bern, North Carolina 28562
NORTH CAROLINA
Environmental Quality
July 28, 2023
DWR # 20230700 v.1
Craven County
Subject: AUTHORIZATION CERTIFICATE PER THE NEUSE RIVER RIPARIAN BUFFER PROTECTION RULES (15A NCAC
02B .0714) WITH ADDITIONAL CONDITIONS
Koll' s Property Improvements
Dear Mr. and Mrs. Kolls:
You have our approval for the impacts listed below for the purpose described in your application received by the Division of
Water Resources (Division) on May 16, 2023. This Buffer Authorization does not relieve the permittee of the responsibility to
obtain all other required Federal, State, or Local approvals before proceeding with the project, including those required by, but
not limited to, Sediment and Erosion Control, Non -Discharge, Water Supply Watershed, and/or Stormwater regulations. This
Authorization Certificate shall expire five (5) years from the date of this letter.
The following impacts are hereby approved, provided that all of the Conditions listed below, and all the conditions of the Neuse
River Riparian Buffer Rules are met. No other impacts are approved, including incidental impacts [15A NCAC 02B. 0611(b)(2)].
Type of Impact
Amount Approved (units)
Amount Approved
Plan location/
Permanent
(units)
Reference Attached
Temporary
Buffers - Zone 2
B2 - new out building
420 ft2 (square feet)
0 ft2 (square feet)
See map /
construction plans
1. Buffer Mitigation Credits in the amount of 630 credits must be purchased before work begins for impacts to zone 2 of the
Neuse River Riparian Buffer.
Zone 2 requires 420 ft2 (square feet) x 1.5 (multiplier for zone2) = 630 credits
Total amount of credits to be purchased is 630 credits.
Proof of credits purchased shall be provide to this office before construction begins. Copy of purchase receipt can be
emailed to Robert Tankard, [e-mail]
2. No Waste, Spoil, Solids, or Fill of Any Kind
No waste, spoil, solids, or fill of any kind shall occur in wetlands, waters, or riparian areas beyond the footprint of the
impacts depicted in the Buffer Authorization Application. All forestry operations activities shall be performed so that no
violations of state water quality standards, statutes, or rules occur [15A NCAC 02H .0502 and .0502].
3. This approval is for the purpose and design described in your application. The plans and specifications for this project are
incorporated by reference as part of the Authorization. If you change your project, you must notify the Division and you
may be required to submit a new application package with the appropriate fee. If the property is sold, the new owner must
be given a copy of this approval letter and Authorization and is responsible for complying with all conditions. [15A NCAC
02B .0507(d)(2)]
North Carolina Department of Environmental Quality Division of Water Resources
Washington Regional Office - 943 Washington Square Mall - Washington, North Carolina, 27889
NDa1N cnFat_iNn� � f 252-946-6481

Project # 20230700 v.1
Craven County
Page 2 of 3
4. Any existing/previous impacts in zones 1 or 2 are deemed approved/authorized.
5. This approval and its conditions are final and binding unless contested. {G.S. 143-215.51
This Buffer Authorization can be contested as provided in Articles 3 and 4 of General Statute 150B by filing a written petition for
an administrative hearing to the Office of Administrative Hearings (hereby known as OAH). A petition form may be obtained
from the OAH at httl2://www.ncoah.com/ or by calling the OAH Clerk's Office at [phone] for information.
Within sixty (60) calendar days of receipt of this notice, a petition must be filed with the OAH. A petition is considered filed when
the original and one (1) copy along with any applicable OAH filing fee is received in the OAH during normal office hours (Monday
through Friday between 8:00am and 5:00pm, excluding official state holidays).
The petition may be faxed to the OAH at [phone], provided the original and one copy of the petition along with any
applicable OAH filing fee is received by the OAH within five (5) business days following the faxed transmission.
Mailing address for the OAH:
If sending via US Postal Service:
Office of Administrative Hearings
6714 Mail Service Center
Raleigh, NC 27699-6714
One (1) copy of the petition must also be served to DENR:
William F. Lane, General Counsel
Department of Environmental Quality
1601 Mail Service Center
Raleigh, NC 27699-1601
If sending via delivery service (UPS, Fed Ex, etc.):
Office of Administrative Hearings
1711 New Hope Church Road
Raleigh, NC 27609-6285
This letter completes the review of the Division under the Neuse River Riparian Buffer Rules as described in 15A NCAC 02B .0714.
Please contact Allen Stewart at 252-946-6481, [e-mail] if you have any questions or concerns.
Sincerely,
Robert Tankard, Assistant Regional Supervisor
Water Quality Regional Operations Section
Division of Water Resources, NCDEQ
cc: Ted Hindin, [e-mail]
DWR Laserfiche
t5 North Carolina Department of Environmental Quality Division of Water Resources
�,) Washington Regional Office - 943 Washington Square Mall - Washington, North Carolina, 27889
NoaaH CAROL NA i �/ 252-946-6481
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Project # 20230700 v.1
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Mitigation Credit Transfer Certificate
July 17, 2023
Ted Hindin
4906 Spring Green Pass
New Bern, NC 28562
RE: Bank Name: Joshua Creek Nutrient Offset and Riparian Buffer
Mitigation Site
Bank Sponsor: Eco Terra, LLC
DWR Project Number: 2022-0819v2
Riparian Buffer Credits Purchased: 630 ft2
River Basin: Neuse 03020204
Project name: 2400 Turtle Bay Drive, New Bern, NC
Dear Ted Hindin:
You have elected to fulfill your permitted Buffer Mitigation Unit
requirements for the abovementioned project by paying into the Joshua
Creek Nutrient offset and Riparian Buffer Mitigation Site ("The Bank")
sponsored by Eco Terra, LLC.
The Bank has received full payment towards the Buffer Mitigation Unit
offset requirements for the above -referenced project. The project is
located at 2400 Turtle Bay Drive, New Bern, which is required to implement
stormwater management and/or buffer impact requirements as part of
the Neuse River Nutrient Strategy. Payment into a private
mitigation bank is acceptable per DWR. DWR specified and verified the
amount of buffer mitigation necessary for approval.
1328 Dekalb Avenue NE, Atlanta, GA 30307 1 EcoTerra.com

ecolerram
You must also comply with any other state, federal or local government
permits or authorization associated with this activity, including SL 2009-
337 and Act to Promote Compensatory Mitigation Banks. This payment
into the Bank is refundable but not transferable.
If you have any questions regarding the purchase of these credits, please
contact me at 404.596.8004 or [e-mail].
Sincerely,
Eco Terra, LLC
404.596.8004
1328 Dekalb Avenue NE, Atlanta, GA 30307 1 EcoTerra.com

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