20080511 Ver 1_Email regarding L-8 removal from bank_20170926

Strickland, Bev
From:
Merritt, Katie
Sent:
Tuesday, September 26, 2017 10:29 AM
To:
'Jeff Becker'
Cc:
Bobby Ham
Subject:
RE: Final Closeout Visits & Status
Hey Jeff,
Sounds good. The L-8 letter is already prepared but needs to be reviewed and signed by management prior to
issuance. I am not sure DWR is going to consider allowing L-8 to remain part of your CLCP bank based on the site
visit. There wasn't enough of L-8 that was undamaged to really grant approval of any part of it without additional
requirements.
If we accept any part of L-8 to remain part of the CLCP bank, you automatically will be required to return every part of L-
8 back to a fully wooded vegetated state, reinstall all placards as required in the BPDP and as required in the Easement
(because L-8 is described as being a full 1.51 acres of protected and vegetated area) and you would only receive credits
on the small undamaged portion for all of that extra work we would require to bring GES into compliance with the buffer
rule, the UMBI, the BPDP and the Easement. Additionally, DWR would also require all of L-8, not just the undamaged
portion, to be protected by a permanent fence.
Also, if we accept any part of L-8 to remain in the bank and receive credits, that also means you have the potential of not
finding a suitable steward willing to take on the non-compliance of L-8 or the risk associated with future encroachment
issues. Therefore, our letter is currently drafted to remove L-8 completely from the CLCP bank and all credits associated
with that tract (1.51 acres worth) will be deducted from the last credit release. This decision should allow GES to modify
the easement by removing this tract and its acreage from the Plat on the Conservation Easement, address any buffer
violations within the first 50' from top of bank (any part of the 50' that had trees and now doesn't, is a violation)
separately with the landowner and Mr. Ham (because that actually does have to be addressed) and be more likely to
secure a land steward for the other +/-19 acres without having to note the issues with L-8.
Normally, DWR would not let a Mitigation Bank out of their responsibility to maintain the ENTIRE bank prior to
closeout.... but in this scenario, with the continued issues at L-8, the small acreage it encompasses, and the fact we
already extended monitoring by 4 years, this would be a compromise DWR is willing to take.
I'm here all week if you would like to call and discuss further.
Thanks,
Katie
From: Jeff Becker [mai lto:[e-mail]]
Sent: Monday, September 25, 2017 6:57 PM
To: Merritt, Katie <[e-mail]>
Cc: Bobby Ham <[e-mail]>
Subject: Re: Final Closeout Visits & Status
If I could I would give the MOWITW and nice pay raise.. Outstanding.. I am working on L8 and have
had active discussions with Mr Ham concerning our appropriate course of action ... I think the violation
letter could help move things along.. My vote is simply to eliminate the damaged area.. However, we
must receive guidance from our accountant as to tax implications and reported losses.. We have not

hearfd back as of todays date.. Stewardship continues to remain a challenge.. As we discussed there
is some momentum for the Tar River Basin Association to hold the easement for our Tar River
Banks.. However this may take a little time as we will have to introduce the concept to their Board etc
as well as have your office approve them should they agree.. ( interesting concept they do not want a
payment .. they want credits)... I will be calling Lindsey Tues or Wed regarding Neuse 02 and 03
banks easements.. I have been holding off in hopes of a final decision on my problem child L8
however as you have reminded I need to move thse along as best we can... AGAIN many thanks for
your organizational skillssssss
On Monday, September 25, 2017 2:52 PM, "Merritt, Katie" <katie.merritt(a)ncdenr.gov> wrote:
Hey Jeff,
According to my records, GES has 3 Mitigation Banks that are up for their 5th Year Monitoring and
possibly the final credit release. I have provided you with the status of each of these 3 mitigation
banks based on my notes. Please take a look at these and let me know if you have any questions.
Contentnea Creek (#2008-0511)
a. L-8 Track Monitoring Report received and site visit was conducted noting non-
compliance.
b. L-8 in violation of UMBI, BPDP and Conservation Easement — Letter from DWR with a
course of action is being prepared to be sent to GES
c. A long term steward has not been chosen to accept the transfer responsibilities of the
Conservation Easement
d. Letter of Credit is still in effect
e. No final credit release can be awarded at this time.
2. LaGrange Phase 1 (#2008-0511 v2)
a. Year 5 Monitoring Report is due before December 31, 2017
b. Site visit will be required after report has been received to determine if site is deemed
"successful"
c. A long term steward has not been chosen to accept the transfer responsibilities of the
Conservation Easement
d. Letter of Credit is still in effect.
e. No final credit release can be awarded at this time.
3. Ballahack (#2013-0436)
a. Year 5 Monitoring Report is due before December 31, 2017
b. Site visit will be required after report has been received to determine if site is deemed
"successful"
c. The long term steward is NCWHF.
d. Bond is still in effect
e. No final credit release can be awarded at this time.

Hope this helps.
Thanks
Katie
Katie Merritt
Nutrient Offset & Buffer Banking Coordinator
401 & Buffer Permitting Unit
North Carolina Department of Environmental Quality
Work: 919-807-6371
Website: http://portal.ncdenr.org/web/wq/401bufferpermitting
512 N. Salisbury Street, Raleigh, NC 27620
1617 Mail Service Center. Raleiah. NC 27699-1617
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