20001024 Ver 1_Other Agency Comments_20080812 (2)

DEPARTMENT OF THE ARMY
WILMINGTON DISTRICT, CORPS OF ENGINEERS
Washington Regulatory Field Office
P.O. Box 1000
Washington, North Carolina 27889-1000
IN REPLY REFER TO
August 11, 2008
Regulatory Division

ORM ID SAW-1999-10581 / Bear Creek-Mill Branch Mitigation Bank

Mr. David Schiller ~ i~ 4y1
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Restoration Systems, LLC D t l._.. 11
1101 Haynes Street, Suite 107
Raleigh, North Carolina 27604 AU G 8 2 2008
AT
Dear Mr. Schiller: DAN .wAC~ MW sTv
~yETi.AyDS AND STORMN'A~R BRANON
This correspondence is in reference to the Bear Creek-Mill Branch Mitigation Bank (Bank)
Restoration Systems is developing located north of U.S. 70, east of Promise Land Road and
south of Washington Road, adjacent to Bear Creek, west of LaGrange, in Lenoir County, North
Carolina. This correspondence also confirms our telephone conversation on July 31, 2008. As
discussed, the purpose of this letter is to confirm the release of credits and to address remaining
issues associated with this Bank.
Pursuant to the Mitigation Banking Instrument (MBI) entitled, Agreement to Establish the
Bear Creek-Mill Branch Mitigation Bank in Lenoir and Craven Counties, North Carolina, at the
end of the five year monitoring period, seventy-five percent (75%) of the Bank's total restoration
credits would be available for sale upon the documentation of acceptable survival and growth of
planted vegetation and attainment of acceptable wetland/stream hydrology. The final twenty-five

percent (25%) of the Bank's restoration credits would be available for sale only upon a
determination by the MBRT of functional success as defined in the mitigation plan.

Based upon the five years of monitoring and onsite inspections, the MBRT has determined
that it is appropriate to release 75% of the Bank's restoration credits. By copy of this
correspondence, the following depicts the credits that are now available for sale from this Bank:

66.0 Restoration credits
17.0 Enhancement credits
59.4 Preservation credits (60.6 credits minus 1.17 credits of Bank preservation lost to
the U.S. Highway 70 Bypass project)
Total: 142.4 Credits

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NOTE: Reference Paragraph 18 of the MBI for appropriate debiting procedures; also reference
Paragraph 22 for appropriate ledgering of the debits from this Bank.

It is also documented that areas of open water exist on the site where none of the planted tree
species have survived. Consequently, the restoration of 88 acres of riverine forested wetlands as
stipulated by the MBI has not been achieved. Pursuant to your letter of March 5, 2008, you are to
reevaluate these open water areas throughout the 2008 growing season and then delineate and
map the open water/wetland boundary for evaluation by the MBRT. Please be aware that
drought conditions may affect the ability of the MBRT to make a final decision. Accordingly,
the final 25% of the Bank's remaining restoration credits will not be released until the MBRT
reaches consensus on this matter.

As discussed at our February 20, 2008, meeting, the MBI for this Bank must be modified to

reflect any changes in the credit base resulting from the aforementioned reevaluation and to
reflect the loss of the 5.88 acres of preservation lands from the Bank due to the U.S. Highway 70
Bypass project.

Thank you for your time and cooperation. If you have any questions, please contact me at the
Washington Regulatory Field Office, telephone [phone], extension 22.

Sincerely,

David M. Lekson, P.W.S.
Chief, Washington Regulatory Field Office

Copies Furnished:

Mr. John Dorney
Division of Water Quality
North Carolina Department of Environment
and Natural Resources
1650 Mail Service Center
Raleigh, North Carolina 27699-1650

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Mr. Eric Kulz
Division of Water Quality
North Carolina Department of Environment
and Natural Resources
1650 Mail Service Center
Raleigh, North Carolina 27699-1650

Ms. Tammy Hill
Division of Water Quality

North Carolina Department of Environment
and Natural Resources
1650 Mail Service Center
Raleigh, North Carolina 27699-1650

Mrs. Kathy Matthews
U.S. Environmental Protection Agency
109 T.W. Alexander Drive
Mail Code: E-143-04
Durham, North Carolina 27711

Mr. Howard Hall
U.S. Fish and Wildlife Service
Fish and Wildlife Enhancement
Post Office Box 33726
Raleigh North Carolina 27636-3726

Mr. Ron Sechler
National Marine Fisheries Service
Pivers Island
Beaufort, North Carolina 28516

Ms. Molly Ellwood
North Carolina Wildlife Resources Commission
127 Cardinal Drive Extension
Wilmington, North Carolina 28405

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Ms. Maria Tripp

North Carolina Wildlife Resources Commission
943 Washington Square Mall
Washington, North Carolina 27889

Mr. George Howard
Restoration Systems, LLC
1101 Haynes Street, Suite 107
Raleigh, North Carolina 27604

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