20080868 Ver 2_USACE Permit Cond Clarification to PCS_20170516

Regulatory Division
DEPARTMENT OF THE ARMY
WILMINGTON DISTRICT, CORPS OF ENGINEERS
Washington Regulatory Field Office
2407 W 5`h Street
Washington, North Carolina 27889
Action ID No: SAW- 2001-10096
Mr. Jeffery C. Furness
Senior Scientist
PCS Phosphate Co., Inc.
1530 NC Highway 306 South
Aurora, North Carolina 27806
Dear Mr. Furness:
May 15, 2017
Reference the Department of the Army (DA) individual permit (IP) and associated permit Special
Conditions (SpecCons) issued to PCS Phosphate Company Inc. for continuing mining activities
located in Aurora, Beaufort County, North Carolina.
On May 1, 2017, an onsite field meeting took place to review the P and U Lands Mitigation Site -
Phase 1. Following that review, Tom Steffens from the U.S. Army Corps of Engineers (Corps),
Anthony Scarbraugh, Mac Haupt and Chris Pullinger of the NC Division of Water Resources
(NCDWR) met informally with you to discuss the PCS mining operations and review ongoing
compliance with several of the SpecCons associated with the DA permit issued to PCS.
As a result of that meeting, this transmission references the following SpecCons and ensuing
discussion:
Condition M: Addresses the South Creek Corridor Mitigation Area and the conservation
easement to be placed/held on the lands around and near South Creek. Continuing discussion
between the Corps Office of Counsel (OC/Carl Pruitt) and PCS legal counsel (Brooks-
Pierce/George House) is underway concerning the presence and activity of the South Creek
Drainage District. The proposed language to be added to the Declaration of Conservation
Covenants, Conditions and Restrictions has not been finalized and remains an open topic.
Condition N: Addresses the Annual Mitigation Ledger to be submitted to the Corps. Discussion
revolved around the receipt of mitigation site closeout requests, format/calculations and updating
the annual mitigation ledger to accurately reflect the mitigation provided by the various sites that
have been "closed out" to date. The Corps acknowledges receipt of the Upper Back Creek
Mitigation Site closeout request with the accompanying ledger and calculations of the final
mitigation credit provided by that specific site. As per your request, the Corps finds the overall
format and methodology to be acceptable and anticipates receipt of the remaining closeout

requests for Rutman Phases 1 and 2, Sage Gut, Bay City and Hell Swamp. Please update the
Annual Mitigation Ledger to reflect the final credits provided by these sites when available.
Condition Q: Addresses the groundwater monitoring plan required for the reclamation area
known as R-12. The draft plan was distributed on June 10, 2016 to various state and federal
agencies for review, comments were provided by NCDWR to PCS. After review, the Corps
concurs with the recommendations made by NCDWR to the R-12 Groundwater Reclamation
Plan and anticipates receipt of the modified version and subsequent monitoring reports.
General Discussion topics: The group discussed the logistics and potential timing of a tour of the
PCS mine site for the benefit of the principal resource agencies and new personnel associated
with the project. Specifically, EPA/Todd Bowers requested a tour of the active mine site if
possible to get better acquainted with the ongoing mining operations and mitigation sites. Other
agency personnel have expressed a similar interest. The logistics and timing have not been
finalized and remain open for discussion.
Questions or comments regarding this correspondence may be directed to Tom Steffens,
Regulatory Project Manager at the Washington Regulatory Field Office, telephone (910) 251-
4615.
Sincerely,
STEFFENS.THOMAS.ADigitally �igoed by
STEFFENS.THOMAS.ANCRUM.1294706273
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Thomas Steffens
Regulatory Project Manager
Washington Regulatory Field Office
E -copies:
NCWRC/Maria Dunn
NCDWR/Anthony Scarbraugh
NCDWR/Mac Haupt
NCDWR/Chris Pullinger