MMI_Tar River Headwaters_DWRAuditReview

Hartshorn, Blake
From:Hartshorn, Blake
Sent:Wednesday, January 24, 2024 11:40 AM
To:[e-mail]
Cc:Merritt, Katie
Subject:Tar River Headwaters Sales Audit Results
Attachments:TRH Credit ledger.pdf
Good Morning,

DWR has finalized the audit for Riparian Buffer and Nutrient Offset Credit Sales for the Tar River Headwaters (DWR
ID#2013-0184) mi?ga?on bank from 1/1/2021 to 12/31/2022 based on the most recent ledger submi?ed to DWR which
is a?ached and dated 1/15/2024. The audit results are provided below and require further ac?on from Mogensen
Mi?ga?on Inc. :
Nitrogen Credit Ledger
 The FMC Grading transaction is not compliant with the MBI. The County buydown letter is dated 7/23/2022 but
the MCTC and credit ledger have a sale date of 6/29/2022 which is before the buydown letter was authorized.
o Action Required
 Provide an explanation to DWR as to why the credits were sold before the county letter was
issued.
 The 9/7/2021 ASI transaction is not compliant with the MBI. The Franklin County buydown letter provided to
DWR is not an official buydown letter as there is no appropriate County letterhead and no authorizing signature
from a county representative.
o Action Required
 Request an official county buydown letter from Franklin County that has an appropriate
letterhead and authorizing signature.
 If a buydown letter is not received within 15 calendar days from receipt of this email,
Mogensen Mitigation will be required to issue a FULL REFUND for the ASI project. The
process to issue a FULL Refund is outlined below:

 Add a line item to the Nitrogen nutrient offset ledger dated 1/24/2024. Add the
purchaser Name. For Project Name, enter: ASI– FULL REFUND for non-compliant
credit sale dated 9/7/21. Under the “CREDITS RELEASED/AVAILABLE” column,
enter 636.75 lbs and update the credit balances accordingly.
 Create a new Mitigation Credit Transfer Certificate w/ “REFUND” under the heading,
dated 1/24/2024 to the permittee, documenting the FULL REFUND of phosphorus
nutrient offset credits due to not having an approved stormwater management plan
approval letter. Indicate on the MCTC, that the 636.75 lbs of Nitrogen nutrient
offset credits can be purchased upon receipt of an approved
stormwater management plan approval letter (aka Buydown letter)
 Once you have finalized the new MCTC notifying the refund, send it to the permittee, their
consultant (if applicable), the DWR contact and to me along with the corrected Credit Ledger.

 Several transactions were partial sales based off the requirement noted in the local government buydown
letters. However, the partial sale was not indicated on the nitrogen credit ledger and there were no descriptive
project names.
o Action Required
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 2/15/2021 Transtech Energy Warehouse: add partial in the project column. Also add Energy
Warehouse in the project column as that is the project name. (See attached MCTC PDF with
DWR notes for future reference. No changes are needed to the MCTC’s currently but DWR is
expecting Mogensen Mitigation Inc. to follow these notes moving forward.)
 4/20/2021 OSSID, LLC: add partial in the project column. Also add “expansion 4000 college
road” so it is more particular in case there is another OSSID transaction in the future. Implement
this on the Phosphorus ledger as well.
 4/22/2021 transaction: add the full name of the project that is in the MCTC, which should be
CRC Global Solutions Loading Dock & Parking Improvements. Implement this on the Phosphorus
ledger as well
 8/13/2021 Dollar General: add store # or address in project column, which should be Store
#23207. There are many Dollar Generals that this sale could have been for, so having specific
information in the ledger and corresponding MCTC is always necessary. Implement this on the
Phosphorus ledger as well.
 9/7/2021 ASI: Provide a more descriptive project name such as adding the address or a permit #
so DWR can compare with the approval letter submitted for this sale.
 10/15/2021 NCFB: Provide a more descriptive project name such as adding the address or a
permit # so DWR can compare with the approval letter submitted for this sale.
 6/2/2022 Cargo Transporters parking lot expansion: add partial in the project column
 FMC grading: add “Facility” in the project column as well as partial.

 DWR credit releases are not appropriately listed as they are not indicating what the associated tasks are for the
corresponding credit release.
o Action Required
 Label DWR credit releases as the task associated with the release. i.e. the credit release on
5/27/2022 should be “DWR credit release Task 9”.
Phosphorous Credit Ledger
 Several transactions were partial sales based off the requirement noted in the local government buydown
letters. However, the partial sale was not indicated on the phosphorous credit ledger and there were no
descriptive project names.
o Action Required
 6/24/2021 transaction: add the full name of the project that is in the MCTC, which should be
Brantley Ridge Subdivision.
 9/2/2021 transacation: add partial in the project column.
Riparian Buffer Credit Ledger

 All sales compliant

Blake Hartshorn (he/him)
Mitigation Specialist, Division of Water Resources
North Carolina Department of Environmental Quality
Office: [phone]
Cell: [phone]
[e-mail]
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