20130244 Ver 1_DWR comments to unrequested Monit. Rprt_20170216

Strickland, Bev
From:Merritt, Katie
Sent:Thursday, February 16, 2017 11:28 AM
To:'Rich Mogensen'; 'Daniel'
Subject:TarRiver Site
Attachments:13-0184 TarRiverHW Release Task2_3-9-16.pdf
Hi Rich and Daniel,
I received a monitoring report for the site on January 23, 2016. Upon review of the report, it was noted that a
substantial loss in stems was observed and that about 79% of the plots had failed. DWR is not requiring MMI to replant
at this time, because DWR has not received an As-Built Report for the subject site. As noted in the UMBI and BPDP, an
As-Built report must be submitted for review and approval prior to the implementation of the monitoring plan. Upon
looking back at the letter sent to you on March 9, 2016, all future credit releases are on hold by the DWR until the Draft
TarRiver HW Stream Mit Bank has been approved and fully constructed through the As-Built phase. I have attached the
letter for your convenience.

When MMI has constructed the stream mitigation bank onsite, and has prepared the AsBuilt report for the IRT, a
separate As-Built for the buffer & nutrient offset bank shall be submitted to DWR. It is after the approval of that report,
that MMI can begin to implement their monitoring plan and secure their financial assurance for monitoring and the
credit releases will begin again.

Thank you,
Katie

Katie Merritt

Nutrient Offset & Buffer Banking Coordinator
401 & Buffer Permitting Unit

North Carolina Department of Environmental Quality

Work: 919-807-6371
http://portal.ncdenr.org/web/wq/401bufferpermitting
Website:

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.

1

Water Resources
ENVIRONMENTAL QUALITY
PAT MCCRORY
Governor
DONALD R. VAN DER VAART
Secretary
S. JAY ZIMMERMAN
Director
March 9, 2016
Richard Mogensen
Mogensen Mitigation, Inc.
P.O. Box 690429
Charlotte, NC 28227
DWR Project # 2013-0184
Person County
Re: Tar -Pamlico Umbrella Mitigation Banking Instrument (UMBI)
Tar River Headwaters Nutrient Offset & Riparian Buffer Bank — Task 2 (partial)
Dear Mr. Mogensen:
On January 6, 2016, the Division of Water Resources (DWR), received notification from Mogensen
Mitigation, Inc (MMI), that the subject site had been constructed in its entirety. On February 22, 2016,
Katie Merritt, with assistance from you and Daniel Kuefler with MMI, inspected the site and confirmed
that the subject site had been completely planted and constructed with all fourteen (14) monitoring plots
installed.
It was also observed onsite as well as noted in previous correspondences that the stream mitigation
referenced in the Bank Parcel Development Package (BPDP), had not been constructed. Therefore, based
on conversations between the US Army Corps of Engineers, Mac Haupt with the DWR, and
representatives from MMI, it was determined that approximately 7.13 acres of riparian restoration efforts
along the upper reach of UT2 may need to be impacted to allow for future stream bank stabilization
efforts and in -stream devices. The attached Figure 7.1 prepared by MMI and provided to Ms. Merritt on
March 4, 2016, shows the riparian restoration areas highlighted in yellow and blue that are being removed
from this credit release to allow for any future stream mitigation work to be performed. Approximately
3.39 acres (147,668.4 ft2) of riparian buffer credits and 3.74 acres (8,501.10 lbs -Nitrogen and 547.54lbs-
Phosphorous) of nutrient offset credits will not be released until all stream mitigation work has been
constructed and an As -Built report has been submitted. All other riparian restoration areas shown in the
attached Figure 7.1 shall remain undisturbed.
In addition, there were bank stabilization concerns noted by Ms. Merritt onsite with the upper reach of
UT2. If MMI determines to not construct the stream mitigation bank, MMI agreed to still perform bank
stabilization efforts on that part of UT2 above the confluence with UTL Lastly, as stated in an email to
you by Ms. Merritt on January 29, 2016, the following also apply:
All future credit releases will be on hold by the DWR until the DRAFT Tar River Headwaters
Stream Mitigation Bank has been approved and fully constructed through the As -Built
phase. When MMI prepares their As -Built report for the Stream Bank, a separate As -Built report
referencing the constructed Stream Bank and AsBuilt Report shall be submitted to DWR for the
Nutrient Offset & Buffer Bank. No as -built report will be reviewed or approved until the Stream
Bank's As -Built report has been submitted to the IRT.
IfMMI determines not to construct the Stream Bank, formal notification to both the DWR and
IRT will be required prior to receiving any further credit releases for the Buffer & Nutrient Offset
Mitigation Bank.
State of North Carolina I Environmental Quality I Water Resources
1617 Mail service Center I Raleigh, North Carolina 27699-1617
919 807 6300

Tar -River Headwater Bank (MMI)
March 9, 2016
Page 2 of 2
On June 27, 2014, DWR received a performance bond (#110086) to cover performance obligations for
the construction of the subject site. At this time, the performance obligations to construct the subject site
have not been fully met; therefore, DWR cannot release MMI from its financial assurance obligations
with regards to the performance bond (#110086) with Lexon Insurance Company as the Surety, at this
time.
According to the LIMBI signed on April 9, 2013, the following Project Milestones have been met, and the
corresponding credits shall be released:
Task/Milestones
Credit
2) Mitigation Site Earthwork, Planting and Installation of Monitoring 20%
Devices Completed (with the exception of 7.13 acres)
TOTAL: 20%
By copy of this correspondence, DWR confirms that you have satisfied the above requirements for the
above -referenced tract and 20% of your Tar -Pamlico riparian buffer credits (0.20 x 180,338.4 ft2 =
36,067.68 ft2) are now available for sale. Additionally, 20% of your nitrogen nutrient offset credits (0.20
x 12,547.07 lb -N = 2,509.41 lb -N) and 20% of your phosphorous nutrient offset credits (0.20 x 808.13
lb -P =161.63 lb -P) are now available for sale.
Please note that nutrient offset credits generated at this site must be used for development impacts
in HUC 03020101 of the Tar -Pamlico River Basin. Additionally, the riparian buffer credits must
be used for impacts in the Neuse River Basin according to guidelines in the Consolidated Buffer
Mitigation Rule, 15A NCAC 02B.0295, which became effective on November 1, 2015.
Please feel free to call Katie Merritt at [phone] if you have any questions regarding this
correspondence.
Sincerely,
Karen Higgins, Supervisor
401 & Buffer Permitting Branch
KAH/km/ewk
Attachments: Figure 7.1 Prepared by MMI dated March 4, 2016
cc:File Copy (Katie Merritt)

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