20150998 Ver 1_Sutton RAI Response_20160128

Burdette, Jennifer a
From: Cahoon, Steve <[e-mail]>
Sent: Thursday, January 28, 2016 11:39 AM
To: Burdette, Jennifer a
Subject: Sutton RAI Response
Attachments: RAI response.pdf
Jennifer,
Please see attached the response to your request for additional information pertaining to dated January 15, 2016,
pertaining to Duke Energy's request for an Individual Isolated and other Non -404- Jurisdictional Waters and Wetlands
Permit. A hard copy of the response will follow in the mail. Please contact me if you have any questions.
Steve
Steve Cahoon
Duke Energy
EHS — CCP Permitting and Compliance
Office - [phone]
Cell - [phone]
[e-mail]

& DUKE
IPENERGY.
PROGRESS
28 January 2016
VIA ELECTRONIC MAIL AND U.S. MAIL
Ms. Jennifer Burdette
401 /Buffer Coordinator
Department of Environmental Quality
Division of Water Resources, Water Quality Permitting Section
1617 Mail Service Center
Raleigh, NC 27699
Duke Energy Progress, LLC.
410 South Wilmington Street
Raleigh, NC 27601
Subject: Response to Request for Additional Information
Individual Isolated and Other Non404 Jurisdictional Wetlands and Waters
Permit - Proposed Sutton Onsite CCR Landfill (DWR#I5-0998)
L.V. Sutton Energy Complex
Wilmington, North Carolina
Dear Ms. Burdette:
Duke Energy Progress, LLC. (Duke Energy) received the Division of Water Resources
(Division) letter Request for Additional Information (RAI) dated 15 January 2016. The RAI,
provided as Attachment 1 to this letter, is in reference to the Duke Energy request for an
Individual Isolated and Other Non404 Jurisdictional Wetlands and Waters Permit for isolated
wetlands impacts associated with the construction of the proposed Onsite Coal Combustion
Residuals (CCR) Landfill (landfill) located at the L.V. Sutton Energy Complex (Sutton) near
Wilmington, New Hanover County, North Carolina.
RESPONSE TO RAI
Duke Energy has reviewed the RAI and submits the following responses to the items requested
by the Division based on the information available.
Division Request Item 1: The Division understands that the proposed on-site landfill will be
used for disposal of coal combustion residuals that will be excavated from the 1984 Basin, 1971
Basin, and Lay of Land Area at the station in order to close those basins. Closure of the basins

Ms. Jennifer Burdette
January 28, 2016
Page 2 of 3
will involve removal of some areas of the dikes, which may impact wetlands located adjacent to
Sutton Lake. These excavation areas need to be included in the project boundary for the project.
Also, provide a description of this phase of the project and an estimate of when it is anticipated
to begin. Please note that this permit may need to be modified or a Section 404 and 401 water
quality certification may be required depending on the outcome of the jurisdictional
determination of these wetlands and any potential impacts to those wetlands.
Item 1 Response: Formal Jurisdictional Determinations for the Discharge Canal, Cooling Pond
and any potential wetlands or waters adjacent to these features and the CCR Basins is currently
in process with the US Army Corps of Engineers and the North Carolina Department of
Environmental Quality (NCDEQ). An on-site agency meeting for this purpose has been
scheduled for 9 February 2016. Duke Energy understands that additional permitting for these
impacts, if the impacts are unavoidable, under Section 404 and 401 Water Quality Certification
maybe required based on the outcome of this Jurisdictional Determination. Final Closure Plans
for the CCR Basins and LOLA have not been formalized. Areas of the dikes on both sides of the
Discharge Canal will need to be removed and re -constructed to comply with the applicable
requirements set forth in the Federal CCR Rule [EPA, 2015] and the North Carolina Coal Ash
Management Act (CAMA) for closure of the Basins at Sutton. Duke Energy anticipates that
sheet piling may need to be installed along the Discharge Canal and Cooling Pond where
necessary to facilitate removal of areas of the Basin dikes where CCR was encountered and to
prevent discharge of sediment into the Discharge Canal and Cooling Pond during excavation
activities. Duke Energy will coordinate with the Corps of Engineers and the Division for
permitting associated with these activities once the Jurisdictional Determination has been
conducted and proposed Final Basin Closure Plan has been completed for agency review and
comment. Excavation activities related to the areas in, and adjacent to, the Basin dikes is not
anticipated to commence until the later phases of the CCR removal (2018) with the exception of
possible sheet pile installation in the Discharge Canal and Cooling Pond adjacent to the 1971
Basin dike and LOLA as an additional Best Management Practice (BMP) for sediment control.
Division Request Item 2: From our scoping and pre -application consultation, the Division
understands that an office and parking area will be constructed for the landfill Provide a site
plan and location of the facility along with a conceptual stormwater management plan.
Item 2 Response: The Construction Plans for the proposed Sutton On-site CCR Landfill does
not include an office and parking area associated with the Landfill Project. Duke Energy plans to
utilize existing offices and parking areas already constructed at Sutton.
Division Request Item 3: For your mitigation plan, you have indicated that you plan to make a
payment to either the Town Creek Headwaters Mitigation Bank or the Lower Cape Fear
Umbrella Mitigation Bank. Your application included a letter of availability from both banks.

Ms. Jennifer Burdette
January 28, 2016
Page 3 of 3
Please indicate which mitigation bank that you plan to utilize as the mitigation plan for the
project.
Item 3 Response: Duke Energy has selected the Lower Cape Fear Umbrella Mitigation Bank to
supply the 5.57 wetland mitigation credits necessary for the compensatory impact to isolated
wetlands associated with the proposed landfill project. Duke Energy has received and executed a
formal Statement of Credit Availability and Reservation from Lower Cape Fear Umbrella
Mitigation Bank. A copy of this document is provided as Attachment 2 to this letter.
NXIT-9f I"
If you have any questions or need clarification regarding the information provided, feel free to
contact Steve Cahoon at [e-mail] or 919-546-7457.
Respectfully submitted,
F
i
Steve Cahoon
Duke Energy
EHS-CCP Permitting and Compliance
Attachments:
Attachment 1. Request for Additional information from NC Water Resources Environmental
Quality
Attachment 2. Statement of Credit Availability and Reservation (Lower Cape Fear Umbrella
Mitigation Bank)

WaterResources
ENVIRONMENTAL QUALITY
January 15, 2016
Duke Energy Progress
Attn: Mr. Stephen Cahoon
249 Sutton Lake Road
Wilmington, NC 28403
Subject: REQUEST FOR ADDITIONAL INFORMATION
L. V. Sutton Steam Station — On-site Landfill
Dear Mr. Cahoon:
PAT MCCRORY
GmYr4or
DONALD R. VAN DER VAART
se -1—
S. JAY ZIMMERMAN
Dkrcw
DWR # 15-0998
New Hanover County
On December 22, 2015, the Division of Water Resources (Division) received your application
dated December 22, 2015, requesting an Individual Isolated and Other Non -404 Jurisdictional
Wetlands and Waters Permit from the Division for the subject project. The Division has
determined that your application Is incomplete and cannot be processed. The application is on -
hold until all of the following information Is received:
1. The Division understands that the proposed on-site landfill will be used for disposal of
coal combustion residuals that will be excavated from the 1984 Basin, 1971 Basin, and
Lay of Land Area at the station in order to close those basins. Closure of the basins will
involve removal of some areas of the dikes, which may impact wetlands located
adjacent to Sutton Lake. These excavation areas need to be included in the project
boundary for the project. Also, provide a description of this phase of the project and an
estimate of when it is anticipated to begin. Please note that this permit may need to be
modified or a Section 404 and 401 water quality certification may be required
depending on the outcome of the jurisdictional determination of these wetlands and
any potential impacts to those wetlands.
2. From our scoping and pre -application consultation, the Division understands that an
office and parking area will be constructed for the landfill. Provide a site plan and
location of the facility along with a conceptual stormwater management plan.
3. For your mitigation plan, you have indicated that you plan to make a payment to either
the Town Creek Headwaters Mitigation Bank or the Lower Cape Fear Umbrella
Mitigation Bank. Your application included a letter of availability from both banks.
Please indicate which mitigation bank that you plan to utilize as the mitigation plan for
the project.
Pursuant to Title ISA NCAC 02H .1304(d), the applicant shall furnish all of the above requested
information for the proper consideration of the application. Please respond in writing within 30
calendar days of receipt of this letter by sending three (3) copies of all of the above requested
Sure of North Carolina Envuon=nul Quality ; Waxr ftcUMI xs
1617 Mad service Center y kakigk North Caroluu 27699-1617
919 807 6300

Duke Energy Progress
DWR# 15-0996
Request for Additional information
Page 2of2
information to the 401 & Buffer Permitting Branch, 1617 Mail Service Center, Raleigh, NC
27699-1617. If all of the requested information is not received in writing within 30 calendar
days of receipt of this letter, the Division will be unable to approve the application and it will be
returned. The return of this project will necessitate reapplication to the Division for approval,
including a complete application package and the appropriate fee.
Please be aware that you have no authorization under the Isolated Wetlands and Isolated
Waters Rules for this activity and any work done within waters of the state may be a violation
of North Carolina General Statutes and Administrative Code.
Please contact Chad Coburn at 910-796-7379 or [e-mail] or Jennifer Burdette
at 919-807-6364 if you have any questions or concerns.
Sincerely,
4i�'M
Karen Higgins, 5upervif
401 & Buffer Permitting Branch
cc: USACE Wilmington Regulatory Field Office
DWR WiRO 401 file
DWR 401 & Buffer Permitting Unit file
Filename: 15099BLVSuttonSteamStationon-siteLandfill IWP IC Hold.docx

LOWER CAPE FEAR UMBRELLA MITIGATION BANK
c/o Land Management Group, Inc.
3805 Wrightsville Avenue, Suite 15
Wilmington, NC 28403
MITIGATION CREDIT INVOICE
DATE: January 18, 2016
TO: Duke Energy Progress (Applicant)
249 Sutton Lake Road
Wilmington, NC 28401
CC: Resource Environmental Solutions, LLC
Attn. Cara Conder
302 Jefferson Street, Suite 110
Raleigh, NC 27605
CORPS ACTION ID: N/A
PROJECT NAME: L.V. Sutton Steam Plant— Onsite Landfill Sutton Energy Complex
LCFUMB NO: 2015-016
INVOICE NO: 2015-016
Credit Type
Units
Fee per Unit
Total
Stream
0.0
$390.00
$0.00
Riparian Wetland
0.0
$71,201.00
$0.00
Non -Riparian Wetland
5.6
$51,370.00
$287,672.00
Credit Fee
$287,672.00
35% Discount'
($100,685.20)
Total Balance Due
$186,986.80
135% discount if payment received on or before March 31, 2016
Terms:
(1) Payment due on or before March 31, 2016 for 35% discount.
(2) Credit transfer to be completed upon receipt of payment in full (certified funds requested).
(3) All checks should be made Davable to "LCFUMB Escrow Account" and transmitted to
Land Management Group (Agent) located at 3805 Wrightsville Avenue, Suite 15. Wilmington, NC 28403
Lower Cape Fear Umbrella Mitigation Bank
Mitigation Credit Invoice