19900081 Ver 1_COMPLETE FILE_19900101

DEPARTMENT OF THE ARMY
WILMINGTON DISTRICT, CORPS OF ENGINEERS
P.O. BOX 1890
WILMINGTON, NORTH CAROLINA 28402-1890
IN REPLY REFER TO October 31, 1990
Regulatory Branch
SUBJECT: File No. CESAW-C090-N-016-0219
Pamlico Aquafarms, Inc.
3344 Hillsborough Street
Raleigh, North Carolina 27607
Attention: Mr. W. Gregory Montgomery
Dear Mr. Montgomery:
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i
Reference your application for a Department of the Army permit to
construct intake and outfall structures and place fill material in wetlands
associated with construction of ponds for a striped bass aquacultural facility
on Wards Creek, near Otway, Carteret County, North Carolina.
On September 26, 1990, Headquarters, U.S. Army Corps of Engineers, issued
the enclosed Regulatory Guidance Letter (RGL 90-7). The purpose of the RGL
90-7 is to provide guidance on how areas that have been identified by the Soil
Conservation Service (SCS) as "prior converted cropland" will be handled for
purposes of Section 404 of the Clean Water Act. Specifically, RGL 90-7
provides that areas that qualify as "prior converted cropland" are not subject
to Section 404. Effective September 26, 1990, no permits from the Corps are
required for any activities in "prior converted cropland."
On October 11, 1990, we received a letter from Mr. R. Bruce Rider,
District Conservationist, Soil Conservation Service, that informed this office
that block 1-17, contains about 580 acres and has been identified as "prior
converted cropland." This means that no permits from the Corps are required
for the proposed ponds located within block 1-17. Federal permits will still
be required for the dredged material placed within the wetlands adjacent to
the intake ditch.
By copy of this letter, we are informing the State and Federal agencies of
SCS's determination in light of RGL 90-7.
Should you have any questions or comments, please contact Mr. Heine at
telephone [phone].
Sincerely,
G. Wayne Wright
Chief, Regulatory Branch
?
51
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Enclosure
-2-
Copies Furnished:
Mr. John Parker
Division of Coastal Management
North Carolina Department of Environment,
Health, and Natural Resources
Post Office Box 27687
Raleigh, North Carolina 27611-7687
Mr. William Mills
Division of Environmental Management
North Carolina Department of
Environment, Health and
Natural Resources
Post Office Box 27687
Raleigh, North Carolina 27611-7687
Ms. L. K. (Mike) Gantt
U.S. Fish and Wildlife Service
Fish and Wildlife Enhancement
Post Office Box 33726
Raleigh, North Carolina 27636-3726
Mr. Larry Hardy
National Marine Fisheries Service
Habitat Conservation Service
Pivers Island
Beaufort, North Carolina 28516
U.S. Environmental Protection
Agency - Region IV
Wetlands Section - Water Quality Branch
345 Courtland Street, N.E.
Atlanta, Georgia 30365
Mr. Charles Jones
Division of Coastal Management
North Carolina Department of Environment,
Health, and Natural Resources
Post Office Box 769
Morehead City, North Carolina 28557
DEPARTMENT OF ENVIRONMENT, HEALTH, AND NATURAL RESOURCES
PUBLIC NOTICE
Notice is hereby given of proposal to issue a PERMIT FOR WATER USE
IN CAPACITY USE AREA NO. 1
Applicant(s): Pamlico Aquafarms, Inc.
Carteret County
Attached please find a copy of the proposed PERMIT(S) No. 75
This proposed Permit shall become final unless, within 18 days of
receipt of this notice, request for a hearing is made. Any water
user wishing to contest the proposed action shall be entitled to
a hearing upon a timely request theretofore.
Request for a hearing should be submitted to:
Perry F. Nelson, Chief
Groundwater Section
Division of Environmental Management
Department of Environment, Health and Natural Resources
P.O. Box 27687
Raleigh, North Carolina 27611
Date: August 14, 1990
t-
v'
Perry F. Nelson, Chief
Groundwater Section
NORTH CAROLINA
ENVIRONMENTAL MANAGEMENT COMMISSION
DEPARTMENT OF ENVIRONMENT, HEALTH AND NATURAL RESOURCES
RALEIGH, NORTH CAROLINA
PERMIT FOR THE WITHDRAWAL AND USE OF WATER
In accordance with the provisions of Part 2, Article 21 of
Chapter 143, General Statutes of North Carolina as amended, and any
other applicable Laws, Rules and Regulations,
PERMISSION IS HEREBY GRANTED TO
PAMLICO AQUAFARMS, INCORPORATED
FOR THE
Withdrawal and Use of Water in Carteret County, North Carolina
in accordance with the grantee's application dated February 4, 1990,
and any supporting data submitted with the application, all of which
are filed with the Department of Environment, Health and Natural
Resources and are considered a part of this Permit.
This Permit shall be effective from the date of its issuance
until August 1, 1995 and shall be subject to the following specified
conditions and/or limitations contained in Sections I - IX of
Attachment Number 1 to Permit.
Permit issued this the day of , 19
NORTH CAROLINA ENVIRONMENTAL MANAGEMENT COMMISSION
BY f,`L
GEORGE T. EVERETT, DIRECTOR
DIVISION OF ENVIRONMENTAL MANAGEMENT
By Authority of the Secretary of the Department of Environment, Health
and Natural Resources and Community Development
Permit No. 75
Al.l ?'I ne.nl ,, I .I I _
CuII,III 1.ns :?I'unt rl'U'tic1 lvrrnill ..
lssurd 1r, p,unI l•,? A. I .afa nose In
1. Wi thd P.i+5
A. V-5e
This Perm iL allows the withdrawal of water for the
cultivation of fish In impoundments.
B. gates of withdra-1.1
The maximum quantity of water that may be withdrawn daily
shall not exceed 3,600,000 gallons per day (GPD).
C. source of withdrawals
withdrawals shall be made from the Castle Hayne aquifer.
D. Monitoring of Withdrawals
Withdrawals from each supply well shall be measured by an
approved metering device equipped with a totalizing
indicator, and having an accuracy within plus or minus five
percent.
II. Hater Levels
A. Maximum Drawdown Levels
1. The lowest water-level that may result from the pumpage
of any well covered by this permit shall not exceed the
top of the source aquifer.
2. In the event that water quality data, from the
permitted wells or other wells within the zone
influenced by pumpage of these wells, indicates a
deterioration of quality, in or above the source
aquifer, that is established to be a result of said
pumpage, an alternate maximum pumping level may be
established, by the Director, Division of Environmental
Management, commensurate With protection of water
quality in or above the source aquifer.
B. Monitoring of Water Levels
1. The pumping water-level in each supply well shall be
measured on the last working day of each month at
approximately the same hour. Measurements shall be
made with a steel or electric tape from a fixed
reference point and to within an accuracy of plus or
minus one percent.
2. Unused supply wells or other suitable wells that may be
available shall be monitored when such monitoring is
specified by the Director, Division of Environmental
Management and when pertinent to observation or
evaluation of the effects of withdrawals made under
this permit.
III. Other Provisions
A. Well Construction Approval
1. A well construction Permit shall be obtained prior to
the construction of any well.
2. The Director, Division of b'uvi 1. uI.,.1 11 ut.
shall approve the local ion of all wcl1 -.1 the dope I,s,
zones, aquifers or parts of -11111 1 1„„n which
withdrawals are made.
B. Access to Facilities
The Environmental Management Commission and employees of Lhe
Department of Environment, Health and Natural Resources
shall have reasonable access to areas owned and under
control of the permitter, for observation and inspection of
water-use and related facilities pertinent to the provisions
of this permit and other regulations.
IV. Reports Required
A. Withdrawals
Certified monthly reports of average daily withdrawal totals
from each well shall be furnished to the Department no later
than 15 days after the end of each calendar month. These
averages may be derived by dividing the total gallonage
pumped for the entire month by the number of days in the
month.
B. Water Levels
Certified monthly reports of water levels shall be furnished
to the Department not later than 15 days after the end of
each calendar month. The measurements shall consist of the
pumping water-level for each supply well as measured with a
steel or electric tape, from a fixed reference point, on the
last working day of each month. The measurements shall be
within accuracy limits of plus or minus one percent.
V. Modification or Revocation
A. Modification
1. Permittee must notify the Director, Division of
Environmental Management of any proposed major changes
in usage and apply for a modification of the permit for
such changes or for any revisions of the terms of this
permit.
2. The Director, Division of Environmental management may
modify the terms of the permit, after 60 days written
notice to the permittee, if he finds that the terms of
the permit and/or the resulting water use are found to
be contrary to the purposes of the water Use Act of
1961 or contrary to public interest or having an
unreasonably adverse effect upon other water uses in
the capacity use area.
B. Revocation
The Director, Division of Environmental Mana.3 •?nlent may
revoke the permit if he finds:
1. The permittee has violated the terms of the permit.
2. That the terms of the Permit and/or the resulting water
use are found to be contrary to the purpose of the
Water Use Act of 1967 or contrary to public interest or
having an unreasonably adverse effect upon other water
uses in the capacity use area and cannot be cured by
modification.
n ppl i.'1.1 i.In 'l .II Lh._ wa t'el use 1'x'1 ml l .
q, Water withdrawn under the terms of the purmiL is used
far p -p-es other than those scl forth In the p-mil.
V,, Coustructio!, 0f PtIR14
A. The terns and conditions shall not be construed to relieve
the P. rmittee of any legal obligaLion, or liabiliLy which it
owes or may incur Lo third parties as Lhe result of the
conduct of its operations in conformity with this Permit.
B. When under the terms hereof, any provision of this Permit
requiring approval of the Department or that shall become
effective at the discretion of the Department, the notice of
approval or the exercise of such discretion shall be
evidenced by written instrument issued by the Department.
C. The terms and conditions of this Permit shall not bt
construed as a limitation of the powers, duties, any
authority vested in the Environmental Management Commission
or any other State, Federal, or local agency, or ant
applicable laws hereafter enacted.
VII. Additlonal Conditions
A. This Permit shall be subject to any other State permits
including but not limited to permits required pursuant b
G.S. 113-215.1.
B. Issuance of this Permit shall have no bearing on subsequen
State decision(s) regarding any other water use or othe
permit application(s) submitted or which may be submitted o
which may be submitted by the Permittee, its successors o
assigns.
VIII. Penalties
Violations of the terms and conditions of this Permit ar
subject to penalties as set forth in North Carolina Genera
Statutes 113-215.17.
I%. Permit Non-Transferable
Water Use Permits shall not be transferred except wit
approval of the Environmental Management Commission.
\\\ NOTHING FOLLOWS ///
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State of North Carolina
Department of Environment, Health, and Natural Resources
Division of Environmental Management -
512 North Salisbury Street © Raleigh, North Carolina 27611
James G. Martin, Governor
William W. Cobey, Jr., Secretary
May 2, 1990
Mr. Stanley Winborne III,. President
Pamlico Aquafarms, Inc.
3344 Hillsborough St.
Raleigh, N. C. 27607
Dear Mr. Winborne:
George T. Everett, Ph.D.
Director
Subject: Certification Pursuant to Section 401 of the Federal
Clean Water Act,
Proposed Aquaculture Facility
Pamlico Aquafarms, Inc.
Wards and Williston Creeks
Carteret County
Attached hereto are two (2) copies of Certification No.
2464 issued to Pamlico Aquafarms, Inc. dated May 2,
1990.
If we can be of further assistance, do not hesitate to
contact us.
Sincerely,
George T. Everett
Director
Attachments
cc: Wi ington District Corps of Engineers
W' ington Regional Office
dr. William Mills
Mr. John Parker
Pollution Prevention Pays
nn n.,.. ?7rR7 PnWah Nnr+h Carnliru 77611-7697 Teleohone 919-733-7015
NORTH CAROLINA
Carteret County
CERTIFICATION
THIS CERTIFICATION is issued in conformity with the.
requirements of Section 401 Public Laws 92-500 and 95217 of the
United States and subject to the North Carolina Division of
Environmental Management Regulations in 15 NCAC 2H, Section .0500
to Pamlico Aquafarms, Inc. pursuant to an application
filed on the 8th day of March, 1990 to construct an
aquaculture facility on Smyrna Farms in Carteret County.
The Application provides adequate assurance that the
discharge of fill material into the wetlands adjacent to Ward
and Williston Creeks in conjunction with the aquaculture
facility in Carteret County will not result in a violation of
applicable Water Quality Standards and discharge guidelines.
Therefore, the State of North Carolina certifies that this
activity will not violate Sections 301, 302, 303, 306, 307 of PL
92-500 and PL 95-217 if conducted in accordance with the
application and conditions hereinafter set forth.
Condition(s) of Certification:
1. That the activity be conducted in such a manner as
to prevent significant increase in turbidity
outside the area of construction or construction
related discharge (increases such that the
turbidity in the Stream is 25 NTU's or less are not
considered significant).
2. That erosion controls be in place prior to any
earthen movement in the area of the wetlands.
3. That the side slopes of the filled area be
stabilized as soon as possible to prevent erosion.
4. That discharges from this facility be consistent
with the NPDES Permit for this project.
5. That the facility be constructed and operated in
compliance with the approved stormwater manage-
ment plan.
Violations of any condition herein set forth shall result in
revocation of this Certification.
This Certification shall become null and void unless the
above conditions are made conditions of the Federal Permit.
This the 2nd day of May, 1990.
DIVISION OF ENVIRONMENTAL MANAGEMENT
George T. Everett, Director
WQC* 2464

r

A

DIVISION OF ENVIRONMENTAL MANAGEMENT
Date:
To:
From:
Through:
April 10, 1990
Bill Mills
Planning Branch
James H. Gregson
Wilmington Regional Office
T. L. Bush, Jr.
Wilmington Regional bTfice
?71r`?
V Y
APR 199
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Subject: Regional Office Review and Recommendations
Application for Permit for Excavation and/or Fill
Project # 9003-F
Pamlico Aquafarms
Carteret County
PROJECT DESCRIPTION: The applicant proposes to construct 74
ponds, 6.7 acres each, for a'striped bass aquacultural facility
at Smyrna Farms. Also proposed is an office building, parking
lot, two pole barns, and various small storage buildings.
ADJACENT WATER BODY: Wards Creek (SA Open)
Williston Creek (SA Closed)
The project has been reviewed to determine impacts to water
quality. The following comments have been provided.
A site meeting was held on January 30, 1990 with the
applicant along with representatives from various State and
Federal agencies. At that time Hugh Heine with the COE indicated
that a 404 Permit would be required for all fill at this site.
As per the attached letter from W. Gregory Montgomery, dated
March 26, 1990, 5,052,960 sq. ft. (116 acres) will be filled with
material excavated from the ponds for the construction of the
levees and building pad. In addition 420,000 sq. ft. (9.6 acres)
of existing ditches will be filled upon construction of the
facility.

9003-F.APR
Page Two
The project will require a 401 Certification and that
Certification should include the following conditions for the
filling of wetlands:
1. That erosion controls be in place prior to any earthen
movement in the area of the wetlands.
2. That the side slopes of the filled area be stabilized as
soon as possible to prevent erosion.
3. That the project not cause turbidity outside the immediate
construction area to exceed 25 NTU.
545 acres of 404 type wetlands will be disturbed as a result
of the project. However, the site is a portion of Smyrna Farms
and has been used for agriculture for many years and therefor the
required fill in 404 wetlands should not remove any additional
uses or values of these wetlands.
The project will require an NPDES permit for the discharge
of water from the ponds. A permit application has been submitted
and was reviewed by this office. The applicant was requested on
March 20, 1990 to submit stormwater management information. No
information has been received as of this date.
JHG:9003-F.MAR
cc: DCM W. David Noble
WiRO, CF
Jim Gregson
_ DIVISION OF COASTAL MANAGEMENT Lat:34047130"
FIELD INVESTIGATION REPORT Long:76032130"
1. APPLICANT'S NAME Pamlico A uafarms
2. LOCATION OF PROJECT SITE off U.S. Hwy. 70-E, near Smvrna, Carteret
County; *NO AERIAL PHOTOGRAPHY AVAILABLE*
3.
4.
INVESTIGATION TYPE: DREDGE & FILL
INVESTIGATIVE PROCEDURE:
(A) DATES OF SITE VISIT 9/89
(B) WAS APPLICANT PRESENT YES
1/90
YES
X
*REVISED: 2-15-90*
5. PROCESSING PROCEDURE: APPLICATION RECEIVED January 30, 1990
OFFICE Morehead City
6. SITE DESCRIPTION:
(A) LOCAL LAND USE PLAN Carteret County
LAND CLASSIFICATION FROM LUP Rural
DEVELOPMENT CONSTRAINTS IDENTIFIED IN LUP NONE NOTED
(B) AEC(S) INVOLVED: OCEAN HAZARD ESTUARINE
X
WETLANDS PUBALICE TRUSTEWATERS X
ESTUARINE WATERS X OTHER
(C) WATER DEPENDENT: YES X NO
(D) INTENDED USE: PUBLIC PRIVATE COMMERCIAL X
(E) TYPE OF WASTE WATER TREATMENT: EXISTING NONE
PLANNED septic tank
(F) TYPE OF STRUCTURES: EXISTING NONE
PLANNED 74 ponds, office building, storage building, barns,
water control structures
(G) ESTIMATED ANNUAL RATE OF EROSION -0- SOURCE N/A
7. HABITAT DESCRIPTION:
CAMA
(A) VEGETATED WETLANDS DREDGED FILLED OTHER
NONE
(B) NON-VEGETATED WETLANDS:
NONE
(C) OTHER:
highground
(D) TOTAL AREA DISTURBED: 545 acres
(sq. ft. )
23,740,200
X
8. PROJECT SUMMARY: The applicant proposes to construct 74 ponds for
a striped bass a uacultural facility.
FIELD INVESTIGATION REPORT - PAMLICO AQUAFARMS, CARTERET COUNTY
PAGE #2
NOTES: 1. A pre-application site meeting was held on January
30, 1990, and attended by representatives of the
following agencies: DCM, DEM, NCWRC, DSWC, NCDA,
USACOE, NMFS and USFWS.
2. SEE ATTACHED NARRATIVE INFORMATION
9. NARRATIVE DESCRIPTION: The project site is located off U.S.
Hwy. 70E, between Otway and Smyrna, Carteret County. The
site is a 545 acre portion of an area known as Smyrna Farms
(6000 acres total). This application is for a proposed
aquacultural operation with a series of 74 ponds. The ponds
will be constructed in existing aquacultural fields. In
addition to the 74 ponds (approximately 6.7 acres each), the
applicant also proposes to construct an office building,
parking lot, 2 pole barns, and various small storage
buildings. This CAMA major permit application is for the
installation of water control structures in estuarine
waters, maintenance excavation of existing ditches, and
construction of the overall facility.
10. ANTICIPATED IMPACTS: The most significant impact
anticipated in this project is the intake and discharge of
fresh and salt water. The intake will withdraw water from a
tributary of Wards Creek, and the discharge will occur into
a ditch which drains into Williston Creek. Both of these
Creeks are classified as Primary Nursery Areas by the
Division of Marine Fisheries, and designated as 'SA' by the
Division of Environmental Management. Wards Creek is open
to shellfishing and Williston Creek is closed to
shellfishing. The attached narrative details the proposed
water management plan and other aspects of the project.
PREPARED BY: W. DAVID NOBLE
DATE: MARCH 8, 1990
Please type or print. Carefully describe all an-
project.
d. Describe the planned use f the acre
To construct a 5A
ticipated development activities, including construe-
land clearing, and
paving
filling
vation
i A Aqua culture operation with
,
,
,
on, exca
l
stormwater control. If the requested information is 74 Rearing Ponds for FinFish

not relevant to your project, write N/A (not ap- production
plicable). Items 1-4 and 8-9 must be completed for 4 LAND AND WATER
all projects. CHARACTERISTICS
1 APPLICANT a. Size of entire tract 545 acres of 6000 acres
b. Size of individual lot(s) AvG?.Ponci - 6.7 acres
a. Name Pamlico Aguafarms Inc. c. Elevation of tract above mean sea level or Na-
Address 3344 Hillsborough St. tional Geodetic Vertical Datum ± 8 MSL
City Ra 1 e i qh State N . C .
21
13 20 d. Soil type(s) and texture(s) of tract 10% Alta Vista;
75% Deloss Sand & Clay Loam
-
Zip 7607 -l Day phone (919) 8 15% Wasda;
Landowner or X Authorized agent e. Ve elation n tract Existin fields -
mter soybeans
Er
b. Project name (if any) su
aw
eft- rnnms
Same
plicant is not the landowner, also give
If the a
c f. Man-made features now op tract
6-7 ft. deep drainage i e es1agtc300
p
.
the owner's name and address. 0
g. What is the CAMA Land Use Plan Classifica-
??SMYRNA Farms" lion of the site? (Consult the local land use
M & IVY Assoc' T i mi t-E'r3 Partnership plan.)
1 0 q r 1 air S t r n a i-, Conservation Transitional
Va 23434 (R(14)r,-49-8111
gruffolk Developed Community
,
2 LOCATION OF PROPOSED X Rural Other
h. How is the tract zoned by local government?
PROJECT rural/residential
i. How are adjacent waters classified?S • A • Ward CreE
a. ?TTree ddre?s c tiot ro o Y a w

nc
mRber
1325
R
°
lz
f
j. Has a professional archaeological survey been
.
.
u
.
or i o
N
-?- 70 carried out for the tract? No
b. City, town, community, or landmark If so, by whom? N/A
SMYRNA Farms North of Otwav
c. County Carteret 5 UPLAND DEVELOPMENT
d. Is proposed work within city limits or planning
jurisdiction? No
e. Name of body of water nearest project Complete this section if the project includes any
Ward Creek upland development.
a. Type and number of buildings, facilities, or
! 3 DESCRIPTION AND PLANNED structures proposed 1 Office bld . with
parking lot; 2 pole barns an
USE OF PROPOSED PROJECT scattered pump & storage sheds
b. Number of lots or parcels 74 Ponds
a. Describe all development activities you propose c. Density (Give the number of residential units
(for example, building a home, motel, marina, and the units per acre.) N/A
bulkhead, or pier).
Creation of a 54.5 acre Aqua culture d. Size of area to be graded or disturbed
operation on existing fields at ± 480 acres
SMYRNA Farms by filling in 16 ditehese. If the proposed project will disturb more than
and creating 74 ponds. one acre of land, the Division of Land
If you plan to build a marina, also complete Resources must receive an erosion and sedimen-
and attach Form DCM-MP-2. tation control plan at least 30 days before land
b. Is the proposed activity maintenance of an ex- disturbing activity begins. If applicable, has a
isting project, new work, or both? sedimentation and erosion control plan been
New Work submitted to the Division of Land Resources?
c. Will the project be for community, private, or Pending
commercial use? f. Give the percentage of the tract within 75 feet
of mean high water to be covered by im-
edueational research permeable surfaces, such as pavement,
buildings, or rooftops. less than .5%
• g. Lift the materials, Such as marl, paver stone, b. Amount of material to be excavated from
asphalt, or concrete, to be used for paved below water level in cubic ards 4 13 (intake)
surfaces. gravel access road c. Type of material Silt?e?ay oam
& parking area d. Does the area to be excavated include marsh-
h. If applicable, has a stormwater management land, swamps, or other wetlands? Existing Canal
plan been submitted to the Division of En-
N/A
i
l M e. High ground excavation, in cubic yards _878, 655c.y
v
ronmenta
anagement? f. Dimensions of spoil disposal area W A
i. Describe proposed sewage disposal and/or waste g. Location of spoil disposal area Road bed
water treatment facilities. 1 Septic tank along side of existingt ditch
system in Alta Vista soils along h. Do you claim title to the disposal area? yes
southwest berm
j. Have these facilities received state or local If not, attach a letter granting permission from
approval? pending the owner.
k. Describe e }sating treatment facilities. i. Will a disposal area be available for future
maintenance?/ yes
if so, xvhere? Along side intake canal
j. Does the disposal area include any marshland,
1. Describe location and type of discharges to swamoland,'or water areas? yes - in ditches
waters of the state (for example rsurface runoff, k. Will the fill material be placed below mean
sanitary wastewater, industrial/commercial high water? No - ordinary water level
effluent, or "wash down"), _ When largest 1. Amount of fill in cubic yards 140 , 800 (d tches
10 acre pond is pumped out a max. of m. Type of fill material Material from pond
8 million gallons will be discharged n. Source of fill material On site fields avatioi
m. Water supply source On-site well o. Will fill material be placed on marsh or other
n. If the project is oceanfront development, wetlands? No - on fields or in ditches
describe the steps that will be taken to main- p. Dimensions of the wetland to be filled N/A
tain established public beach accessways or pro- q. How will excavated or fill material be kept on
vide new access. site and erosion controlled? By spreading
N/A o ut existing ditch berms & grassing
a nd retaining all areas within pond
b erms
o. If the project is on the oceanfront, what will r. What type of construction equipment will be
be the elevation above mean sea level of the used (for example, dragline, backhoe, or
first habitable floor? N/A hydraulic dredge)? Track-hoe; Pan dozer
tr
and d
k
6 EXCAVATION AND FILL ump
uc
INFORMATION s. Will wetlands be crossed in transporting equip-
ment to the project site? If yes, explain
the steps that will be taken to lessen en-
a. Describe below the purpose of proposed excava- vironmental impacts.
tion or fill activities (excluding bulkheads, N/A
which are covered in Section 7).
(INTAKE CANAL
Length Width Depth
\
Access channel
(MLW) or (NWL)
Boat basin
Other (break-
water, pier,
boat ramp,
rock jetty)
Fill placed in
wetland or below
MHW
Upland fill
areas
E- 57L
620'
6'
3'

16
70,000Poq,l 4

Pond 98 Berms
7 SHORELINE STABILIZA TION
a. Length of bulkhead or riprap N/A
b. Average distance waterward of mean high water
or normal water level
c. Shoreline erosion during preceding 12 months,
in feet
d. Type of bulkhead material
e. Amount of fill, in cubic yards, to be placed
below mean high water
f. Type of fill material
2
8 ADDITIONAL INFORMATION
In addition to the completed application form, the
following items must be submitted:
ttaehAdcopy of the deed (with state application only) or
other instrument under which the applicant claims
title to the affected property. If the applicant is not
claiming to be the owner of said property, then for.
ward a copy of the deed or other instrument under
which the owner claims title, plus written permis-
sion from the owner to carry out the project.
,nel . An accurate work plat (including plan view and
cross sectional drawings) drawn to scale in black
ink on 8 V2 x 11 white paper. (Refer to Coastal
Resources Commission Rule 7).0203 for a detailed
description.)
3oth Please note that original drawings are preferred and
only high quality copies will be accepted. Blue-line
prints or other larger plats are acceptable only if 16
high quality copies are provided by the applicant.
(Contact the U.S. Army Corps of Engineers regard-
ing that agency's tt;e of larger drawings.) A site or
location map is a part of plat requirements and it
must be sufficiently detailed to guide agency per-
sonnel unfamiliar with the area to the site. Include
county road (SR) numbers, landmarks, and the like.
N/A A stormwater management plan, if applicable, that
may have been developed in consultation with the
Division of Environmental Management.
A list of the names and complete addresses of the
adjacent waterfront (riparian) landowners. These
individuals have 30 days in which to submit com-
ments on the proposed project to the Division of
Coastal Management. The applicant must advise
the adjacent landowners of this opportunity by sen-
ding a copy of the permit application to them by
registered or certified mail. This notification is re-
quired by G.S. 113-229(d).
Certified Mail Receipts Attached
Name
Address
Name_
Address
Name_
Address
A list of previous state or federal permits issued
for work on the project tract. Include permit
numbers, permittee, and issuing dates.
N/A
AttacAieTieck for $100 made payable to the Depart-
ment of Natural Resources and Community
Development to cover the costs of processing the
application.
N/A A signed AEC hazard notice for projects in ocean-
front and inlet areas.
N/A A statement on the use of public funds. If the
project involves the expenditure of public funds, at-
tach a statement documenting compliance with the
North Carolina Environmental Policy Act
(N.C.G.S. 113A-1 to 10).
9 CERTIFICATION AND PERMIS-
L SION TO ENTER ON LAND
Any permit issued in response to this application
will allow only the development described in the
application. The project will be subject to condi-
tions and restrictions contained in the permit.
I certify that to the best of my knowledge, the pro-
posed activity complies with the State of North
Carolina's approved Coastal Management Program
and will be conducted in a manner consistent with
such program.
I further certify that I am authorized to grant, and
do in fact, grant permission to representatives of
state and federal review agencies to enter on the
aforementioned lands in connection with
evaluating information related to this permit ap-
plication and follow-up monitoring of project.
bQ1 29th d o January ,
This is t
19 9 0 7-/i r/
.
~`?' r e s
X S orne III,
Landowner or uthorized agent
Send the completed application materials to the
Division of Coastal Management Office nearest you
and the U.S. Army Corps of Engineers. See the
map on the inside front cover for the appropriate
DCM office and addresses and phone number.
AGENT
Rob Moul Inc.
Timber & Land Management Cons.,
P.O. Box 1471
Wilmington, NC 28402
3
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M E M O R A N D U M
TO: Division of Coastal Management, North Carolina Department
of Natural Resources and Community Development
FROM: Pamlico Aquafarms, Inc.
DATE: February 14, 1990
RE: Water Management Plan for Pamlico Aquafarms, Inc.'s
Facility at Smyrna Farms, Carteret County
The purpose of this memorandum is to provide additional
information on Pamlico Aquafarm, Inc.'s ("Pamlico") intended
water management plan for its proposed aquaculture facility to be
located on Smyrna Farms, Carteret County, North Carolina. This
additional information was requested by the Division of Coastal
Management of the North Carolina Department of Natural Resources
and Community Development and the Division of Environmental
Management at the preapplication consultation conducted on-site
on January 30, 1990.
1. Overview of Water Management.
Good water quality management is a critical factor in the
success of an aquaculture facility. As Pamlico is proposing to
raise hybrid-striped bass in its facility, good water management
practices dictate access to both brackish and fresh water, as
there are certain times of the year when brackish or fresh water
may be more suitable for the propagation and cultivation of this
specie.
Pamlico proposes to use as its source of fresh water the
Castle-Hayne Aquifer which underlies the site, accessing the
aquifer through one six-inch well and four twelve-inch wells over
the four year development period for the project. Pamlico
proposes as its source of brackish water to draw water from a
tributary of Wards Creek through an existing drainage canal which
connects with the existing drainage ditches of Smyrna Farms at
the southern corner of the facility.
By blocking certain parts of the existing ditches on the
farm, and placing drainage control structures in other parts
the existing ditches on the farm, as depicted on the attache
Revised Site Plan, Pamlico anticipates directing the flow o
waters discharged from the ponds into a settling pond, the-
through approximately three miles of existing ditches to '
headwaters of Williston Creek.
Pamlico's use of both the brackish water and fresh water
will be kept at a minimum mainly for economical reasons as it is
very expensive to pump water from these two sources into the
ponds. The reasons for pumping either fresh water from the
aquifer or brackish water from the existing canal are four water;
outrtheoxygenating
to practice normal aeration techniques
ponds to exchange
to replace evaporated water; to
approximately 2 to 3 percent of the volume during the summertime,
as needed; and to refill each pond which will be drained once
each year for harvesting and maintenance.
2. Source of Fresh Water.
Pamlico's facility will be located over the Castle-Rayne
Aquifer, which is approximately 200 to 300 feet below the
surface. This aquifer contains excellent water for aquaculture
because of its hardness from high calcium levels and its low
levels of chloride. During the first year of the project, a
six-inch well and a twelve-inch well will be t in place. Onal
additional twelve-inch well will be put in place
year for the next three years while expanding the facility.
Fresh water from these wells will be mixed with the brackish
waters from the estuarine intake to achieve the desired one to
two parts per thousand salinity for raising the hybrid-striped
bass. An Application for Water Use Permit in a Capacity Use Area
has been submitted to The Department of Natural Resources and
Community Development, Ground Water Section, for the initial
twelve-inch well and six-inch
rate from the aquifer of hase a new application
of the project. During each subsequent p
will be submitted for the additional wells required as the farm se we expands. An 1shortlyfhereafter1tottheoDepartmenteof Natural
will be submitted
Resources and Community Development.
3. Source of Brackish Water. ,
Brackish water from a tributary of Ward's Creek will be
accessed via an existing drainage canal across Smyrna Farm's
western boundary which connects with the existing drainage
ditches at the southern end of the facility. Estuarine waters
from this tributary will be drawn through the canal into a sump
located in 2,000 feet of the existing ditches along the southwest
side of the facility and in 3,000 feet of the existing ditches
along the southwestern side of the facility. Each of these sump
ditches will be ten feet wide by ten feet deep, with six feet of
brackish waters, for a total volume of 300,000 cubic feet or
approximately 2.25 million gallons of brackish water. To provide
access from the tributary of Ward's Creek to the sump, the
existing canal, which is approximately one and a half feet deep,
will be dug out an additional one and a half feet, to
approximately a depth of three feet, which is the depth at which
the Wards Creek tributary
meets the canal at the property line. This existing canal was
dug out at an earlier time, probably during the 1970's, to a
width of ten feet with the spoils being placed on the south side
of the canal. Pamlico intends to place the new spoils from
deepening this canal along the same spoil banks.
Measurements were taken on February 4 and February 11, 1990
of the flow rates of fresh water draining from the existing
ditches of Smyrna Farms into this canal. Based on these two
occasions, Pamlico estimates that between 2,500 to 3,000 gallons
of fresh water flow per minute from the ditches into and through
this canal into the tributary of Ward's Creek. During both these
days of measurement, the water level remained constant at the
headwaters of the ditch as observed through two astronomical
tidal cycles and a high tide created by a northeastern wind, thus
leading to the conclusion that tides do not play a part in the
drainage patterns of the farm.
Once the existing drainage controls and ditch blocks are put
in place to effect the water management plan, Pamlico anticipates
that the flow of fresh water from Smyrna Farms into the existing
canal and the tributary of Ward's Creek will be occluded, such
that brackish waters will be drawn from Wards Creek back through
the tributary and the canal into the sump. The maximum
withdrawal from the sump at any given time will be 8,000 gallons
per minute, which translates to a flow rate in the ten-foot wide
by three-foot deep canal of approximately .59 feet per second.
The flow rate from the canal into the sump will be reduced by
approximately half, as the water volume of the six-foot sump will
be twice that of the canal. Pamlico proposes to put two "V"
screens in the intake canal to avoid entrainment of debris and
organisms from the Wards Creek tributary. A half-inch mesh "V"
screen will be placed above the headwaters of the tributary of
Wards Creek, between the headwaters and the sump. A second
one-quarter inch mesh screen will be placed in the canal just
before entering the sump.
The maximum intake from the sump of 8,000 gallons per minute
is an extreme condition. As Table 1 attached to this memorandum
shows, Pamlico anticipates that the average intake over the
course of a year will be 2,773 gallons per minute, with the
maximum projected during the month of June at 5,076 gallons per
minute. Thus, Pamlico estimates that the normal intake will be
approximately one-third of the maximum flow rate allowed by the
system design.
Pamlico measured the salinity of the water flowing from the
existing ditches into the existing canal and tributary of Wards
Creek on the occasions when it measured the flow rate. This
water had a chloride count of 150 milligrams per liter, for an
effective salinity of zero. Thus, fresh water is currently
flowing from Smyrna Farms through the canal into the Wards Creek
tributary. Pamlico believes that by reducing this outflow of
fresh water, and by drawing brackish water back through the
tributary and canal into the sump, it will benefit the marshes
surrounding the tributary and the canal by increasing the
salinity of the waters in this tributary.
As Table 1 shows, the principal times during which water
will be drawn through the canal into the sump will be from May
through October. The salinity of the tributary where it passes
under East Firetower Road (State Road 1325) (approximately 3,000
feet west of the facility) was measured at five parts per
thousand. Summertime salinities in the creek should be even
higher than in the winter. Thus, as these waters are drawn from
the tributary into the canal, Pamlico expects for the salinity in
the canal and sumps to increase.
As an alternative to deepening the existing canal, Pamlico
is assessing the feasibility of placing a pipeline through the
woods on the facility's western boundary, connecting the
headwaters of Wards Creek tributary directly to the sump and by-
passing the canal.
4. Drainage.
The attached Revised Site Plan and Drainage Plan shows the
flow direction of waters from the ponds and through the existing
and proposed ditches, and where ditches will be blocked and/or
drainage controls will be put in place to direct this flow. The
facility is designed for all waters to flow from the ponds into
various ditches, with all ditches draining into a settling pond
located in the northwest corner of the facility. There, any
solids remaining in the water will settle in the settling pond,
and the waters of the settling pond will exit through a riser at
the surface of the pond out into a ditch along the northwest side
of the facility. The waters will then drain through
approximately three miles of existing ditches to the headwaters
of Williston Creek.
Settling ponds are not a normal practice in pond culture,
although Pamlico is aware of one existing aquaculture facility
that does use a settling pond. Settling ponds are primarily used
in aquaculture facilities which intensively raise fish in
raceways or tanks. The reason that settling ponds are normally
not used in pond aquaculture is that the ponds themselves act as
settling ponds with fish feces falling to the bottom of the pond.
There, the feces decompose through normal aquaculture practices
of total water column aeration and are oxidized. And, as the
ponds are drained on an annual basis, the pond bottoms are dried
out and disced so as to oxidize any of the remaining organic
material. Accordingly, in a pond culture situation such as
Pamlico's, the vast majority of the feces are settled and
decomposed in the rearing ponds, and not flushed out with the
discharged waters. Only a small percentage of the organic
detritus will be flushed out of the rearing ponds and from there
it will move through the ditches and into the settling pond.
Thus, the settling action of the waters in the ditches and in the
settling pond at Pamlico's facility will serve as second and
third guards against the portion of solids or organic material
flushed out of the ponds being discharged into the headwaters of
Williston Creek.
Pamlico is aware that the North Carolina State University
aquaculture lab at the Pamlico Aquaculture Center in Aurora,
North Carolina uses a settling pond. It is Pamlico's
understanding that this facility has been in existence for ten
years and that the settling pond has not been cleaned once during
this time period because of the low organic material being
flushed from the Lab's rearing ponds into the settling pond.
Indeed, Pamlico has been told that the waters of the Pamlico
Aquaculture's settling pond are of sufficient quality that
Pamlico Aquaculture Center holds some its striped bass brooding
stock in the settling pond. Accordingly, Pamlico believes that
the waters flowing from its settling pond into the existing
ditches leading from Williston Creek will contain little organic
matter or suspended solids.
Pamlico is unaware of any data existing as to the biological
oxygen demand of waters being discharged from a settling pond in
a pond culture facility. It is attempting to obtain a copy of a
paper on the biological oxygen demand in catfish rearing ponds
and will provide such paper to the Division of Coastal Management
and Division of Environmental Management should such data be
obtained.
As mentioned above, the settling pond waters will flow from
the surface, through a riser, into existing ditches running along
the northwest boundary of the facility. These ditches in turn
lead to the headwaters of Williston Creek. The length of ditches
between the settling pond and the headwaters at Williston Creek
is approximately three miles. Pamlico believes that this ditch
system will serve to diffuse the waters from the settling pond
and remove any remaining particulates or organic matter such that
effluent flowing into the headwaters of Williston Creek will
contain only phytoplanktons.
on February 4 and February 11, Pamlico measured the salinity
and flow rate of the waters being discharged from the existing
ditches of Smyrna Farms into Williston Creek. The chloride
levels measured approximately 150 milligrams per liter, which is
essentially a salinity of zero. The flow rate of these fresh
waters on these two dates averaged approximately 3600 gallons per
minute from the ditches into the canal leading to the headwaters
of Williston Creek.
Pamlico's management practices are geared to maintaining a
salinity in its ponds of approximately one to two parts per
thousand so as to achieve the most beneficial growing conditions
for the hybrid-striped bass. Thus, its discharged waters from
the settling ponds will also have a salinity of one to two parts
per thousand.
As Table 1 shows, Pamlico anticipates using an average of
2700 gallons per minute during the year. Thus, Pamlico
anticipates discharging a similar amount on an on-going basis,
although its discharge should be less than its intake during the
summer months due to evaporation. While the discharged waters
will be diffused by the existing fresh waters in the ditches of
Smyrna Farms, Pamlico anticipates that the higher salinity of its
discharge waters may be of benefit to the tributaries of
Williston Creek by increasing the salinities of the waters
flowing from Smyrna Farms into its headwaters.
5. Miscellaneous.
Pamlico does not believe that odors from the pond will be any
concern. In support of this, Pamlico references the NCSU's
Pamlico Aquaculture Center and the numerous catfish farms in the
Mississippi delta region. Odor is nonexistent because, as
mentioned above, the fish feces fall to the bottom of the ponds
and are oxidized through water column aeration. Any odors from
decomposition are absorbed in the water and diffused in
imperceptible concentrations from the surface.
Pamlico further anticipates that there will not be any
problems with mosquito control. Actually, Pamlico anticipates
that the existence of the facility may reduce the mosquito
population for this area of Smyrna Farms. The ponds will be
aerated so that surface waters will be moving constantly. Due to
the flow of waters through the intake tributaries and canal, and
the discharge of waters into the existing ditches, these waters
should be moving as well. Finally, the fish will eat any larvae
in the ponds. Thus, Pamlico anticipates that the mosquito
populations surrounding the facility will decrease rather than
increase.
W5/104:jmr

TABLE 1
Average Intake/Discharge Rate (Gallons per Minute) per Month
for Pamlico Aquafarms, Inc. Facility in Smyrna Farm, Carteret
County, North Carolina
Month
January
February
March
April
May
June
July
August
September
October
November
December
Average for Year
Average
Intake/Discharge
(Gallons per Minute)
1,558
1,558
1,558
1,093
2,224
5,076
4,794
4,794
4,794
3,844
992
992
2,773
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11 T T111 0
-I aculture-', Ell J_IJA?f
nn H;u?h ?ro.ic;h Streets haleigl , ??ort t C2ro!ina 27615anuary 30, 1990
INFOP14ATION SHEET ON
AQUACULTURE ENTERPRISES, INC. AND
PAMLICO AQUAFARMS, INC.
This Information Sheet is designed to provide background
information on Aquaculture Enterprises, Inc. ("AEI") and its
subsidiary, Pamlico Aquafarms, Inc. ("PAI"), which is developing
a hybrid striped bass facility on Smyrna Farm in Carteret County.
Aquaculture Enterprises was founded in February of 1989 with the
specific mission of researching, developing, financing, and
managing various projects within the aquaculture industry. To
date, AEI is involved in projects as diverse as the establishment
of a commercial grow out facility for hybrid striped bass, the
development of an extensive culture system for shrimp and
crawfish in waterfowl impoundments, the development of a
commercial hatchery and nursery for salt water clams, and the
extraction of chitin from shrimp and crabshell wastes.
The founders of Aquaculture Enterprises bring to the
industry their cumulative expertise in financial, marketing
legal, and general business matters and have teamed up with
individuals possessing the requisite technical expertise to
establish these projects. The founders are Micou M. Browne, W.
Gregory Montgomery, and Stanley Winborne, III; all North Carolina
natives. AEI's initial role in these projects is assisting in
the development of a business plan, organizing and operating a
business entity, raising financing, and establishing a system for
managing the ongoing enterprise. AEI then provides ongoing
financial, marketing, legal and management skills to allow the
technical person to concentrate on the operation of the
particular enterprise. Because of the emerging nature of the
aquaculture industry, AEI believes that it brings valuable
business experience to start-up and emerging businesses in this
field. AEI's initial project involves breeding and cultivating
hybrid striped bass through its subsidiary PAI.
Hybrid Striped Bass Market
The striped bass, Morone saxatilis, and its European
counterpart, the sea bass, Dicenthrarchus labrax, have long been
favorite food fish of both Americans and Europeans. Yet, because
of the degradation of wild populations due to overfishing and
pollution and the consequent severe regulation of the wild bass
fishery on the East Coast and in European waters, the wild
harvest is no longer able to satisfy demand. To fill this void,
the cultivation of hybrid- stripped bass has become a viable

commercial aquaculture enterprise by crossing the female with a
male white bass to obtain a vigorous hybrid striped bass. As an
example of market demand, the wild striped bass fishery in 1973
yielded a high of 15 million pounds with a commercial value of
$50 million. Yet, in 1988, only 1.5 million pounds of Striped
bass were available, with less than one-half million pounds
harvested from the wild and the balance cultivated from
aquaculture farms. A National Science Foundation survey published
in 1987 demonstrates that 80 wholesalers in 14 eastern states
might pay from $3.00 to $3.50 a pound pond side for up to 8.5
million pounds of farm-raised hybrid striped bass if it were
available, and a similar study recently completed by the Virginia
Institute of Marine Sciences confirms similar demand figures.
The market has borne even higher prices domestically, and could
bear similar high prices overseas.
To fill this unsatisfied demand, AEI, based in Raleigh,
North Carolina has developed an aquaculture facility to breed and
cultivate hybrid striped bass. This business will be conducted
through its subsidiary corporation, PAI, which has been
established to capitalize the business and own and operate the
facility.
PAI's current plan calls for an Aquaculture facility to be
developed in four phases over a four year period, with operations
commencing in the second quarter of 1990. PAI's primary goal is
to achieve in the fourth year 472 acres of production ponds,
producing approximately 1.5 million pounds of fish per year,
thereby becoming the largest supplier of pond-raised hybrid
striped bass in the United States and achieving economies of
scale sufficient to lower production and administrative costs to
long-term competitive levels. AEI will arrange financing to
capitalize PAI thought the private placement of equity and/or the
commercial lending of debt.
AEI has contracted with one of the foremost authorities on
breeding and cultivating hybrid striped bass in the United States
to serve as president of PAI. His mission will be to assist in
the development of the plan, to provide the technical expertise
to oversee the establishment of the facility, and to serve as
chief executive officer of PAI once the facility is constructed
and ready to accept fish. PAI will also be involved in
continuing research and development to refine the breeding and
cultivation techniques of other potentially profitable finfish
species. Some of the areas for further development with regard
to hybrid striped bass include developing a private brood stock
and refining spawning techniques and fingerling production.
Additional finfish species to be developed for cultivation
include the flounder, red drum and European sea bass.
The current plan ultimately calls for full-time management
of the President, a maintenance technician, and a pond manager,
and assorted part-time laborers. AEI will provide on-going
management of PAI's marketing, sales, financial, legal affairs

and farm operation through its principals, who are versed in
these areas both individually and through their professional
associations. The permitting required to establish PAI's
aquaculture facility and its operations is currently underway and
is being handled through AEI and its general counsel. PAI also
anticipates working with other hybrid striped bass growers to
establish a trade association designed to influence regulation of
the industry, to set industry standards for production and
marketing, and to help educate the consumer on the benefits of
farm-raised bass over wild bass.
By raising hybrid striped bass in ponds, PAI anticipates
three primary benefits will accrue. First, filling demand with
cultivated fish will relieve pressure on the wild stock, thus
benefitting North Carolina's marine fisheries. Second, PAI
anticipates providing buyers with a dependable and regular supply
of wholesome, pollution-free fish, with consistent size, flavor,
and quality, thus boosting North Carolina's seafood industry.
Due to the controlled harvesting techniques and freshness of the
fish, shelf life in the retail market should be greatly extended.
By locating in Eastern North Carolina, PAI will be close to both
the traditional market for striped bass, the Northeast, as well
as export markets in Europe and the orient. This area is an
ideal region as its affords access to major transportation routs,
has abundant clean fresh and salt water, and is within one day's
distance by road of 65 of the top 100 metropolitan markets in the
United States. Third, by developing a prominent aquaculture
facility in North Carolina, PAI hopes to bring North Carolina to
the forefront of the aquaculture industry and to lead in the
transition from traditional agricultural activities to more
creative and profitable uses of North Carolina's abundant land
resources.
PAI has chosen to locate its facility on Smyrna Farms in
Carteret County, North Carolina. This location proves to be an
ideal site for several reasons. First, its proximity to the
North River and its estuarine waters affords access to saline
waters necessary for the proper water management in cultivating
hybrid striped bass and other finfish species. Second, its
location over the Castle-Rayne aquifer affords access to abundant
fresh water. Third, the clayey soils of the site allow for good
compaction in building the impoundments without having to bring
in or remove fill material, thus reducing the expense of building
the ponds and minimizing the impact on the surrounding
environment. Fourth, by locating on previously converted farm
land, AEI minimizes the impact of the aquaculture facility on the
coastal environment of Carteret County by using land in
agricultural production and avoiding existing wetlands. Finally,
the existence of an extensive drainage system on Smyrna Farms
allows for PAI to use a settling pond and ditch network to remove
suspended solids and to diffuse the waters discharged from its
ponds into the standing waters of this ditch system. In

locating the land for PAI's use, AEI extensively surveyed the
North Carolina coast and determined the Smyrna Farms site to be
the best of all alternatives available.
After you have reviewed the above, please feel free to
contact either Stanley Winborne, Micou Browne, or Greg Montgomery
with any comments you may have or for any clarification you may
need. AEI believes that this project is a vital step towards
placing North Carolina agriculture in the forefront of
aquaculture and furthering the economic vitality of North
Carolina and Carteret County. The support of aquaculture by the
public and private sectors is necessary for this project and
others to succeed. AEI welcomes this opportunity to make you
aware of its plans and role in the aquaculture industry in North
Carolina.
Please keep in mind that AEI would gladly provide future
evaluation and development expertise on a consulting and/or
participating basis for other aquaculture projects. If you know
of other aquaculture enterprises which could benefit from our
services, AEI would be grateful for an introduction.

„a SLArp o
??dr y
' yy .V "w•ir .rte -?`'.?
? Y RuM vON ¢?'
State of North Carolina
_z Department of Environment, Health, and Natural Resources
Wilmington Regional Office
James G. Martin Governor Bob Jamieson
William W. Cobe}; Jr. Secretary Regional Manager
DIVISION OF ENVIRONMENTAL MANAGEMENT
April 24, 1990
APR 1°99
Mr. Stanley Winborne, III
c/o Pamlico Aqua Farms, Inc.
3344 Hillsborough Street
Raleigh, North Carolina 27607
Subject: Certification of Compliance 't?Zlll??
with Stormwater Regulations
Project No. 900310
Pamlico Aqua Farms, Inc.
Carteret County
Dear Mr. Winborne:
The Wilmington Regional Office received the Stormwater
submittal for Pamlico Aqua Farms, Inc. on March 13, 1990 and
final information on April 16, 1990. Based on our review of the
project plans and specifications, we have determined that the
project complies with the Stormwater Regulations set forth in
Title 15A NCAC 2H. 1003(a)(2). This certification shall be
effective from the date of issuance until rescinded and the
project shall be constructed in accordance with the plans and
specifications as filed with the'Wilmington Regional Office.
If you have any questions concerning this matter, please
call Paul Rawls or me at [phone].
Sincerely,
Original Signed i3y
4. PRESTON HOWARD, iR
A. Preston Howard, Jr., P.E.
Regional Supervisor
PER:900310.Apr
Attachment
cc: Rob Moul, Timber & Land Management Consultants,Inc.
Bil ,fills
WikW3 CF
722= Wrightsville Avenue, Wilmington, N.C. 28403-3696 • Telephone [phone] • Fax [phone]
An Equal Opportunity Affirmative Action Employer
t
90©a If)
DIVISION OF ENVIRONMENTAL MANAGEMENT
Submittal Form for Projects Using Density Limits for Stormwater
Control
PROJECT DATA
Name of Project: Pamlico Aqua Farms, Inc.
Location (County, Township/Municipality, Address): Smyrna
Farms north of Otway at US 70 and SR 1325, Carteret County.
Applicant Name: _Pamlico Aqua Farms, Inc.
Mailing Address: c/o Stanley Winborne, III, 33=4 Hillsborough
Street, Raleigh, NC 27607
Phone No.: [phone]
Submittal Date: 4-12-90
Brief Description (include map and appropriate drawings):
Creation of a 74 pond aqua culture operation on a 545 acre field
_section of Smyrna Farms for raising hybrid stripped bass
Water Body Receiving Stormwater Runoff:
Name of Water Body: Aqua culture ponds and farm ditches 3 miles from
Classification of Water Body: Williston c'.rPPk class (s_A_)
Total Area of Proposed Project (acres): 545 acres
State/Federal Permits and Approvals Required:
(Check Appropriate Blanks)
CAMA Major x Sedimendation and Erosion Control x
404 Permit x DEM/DHS Sewage Disposal x
Other (specify): well water
CALCULATION OF BUILT-UPON AREA
(Built-upon area means that portion of an individual development
that is covered by impervious or partially pervious cover
including buildings, pavement, recreation facilities, etc. but
not including decking.)
a) Built-upon area: 53.6 acres (building, parking lot, roads & levees)
b) Total project area: 545?cres
% built-upon = built-upon / total project area * 100
% built-upon area = 9.8 g
If the water body receiving stormwater runoff is classified as
SA, is the % built-upon area < 25%? Yes x No
If the water body receiving stormwater runoff is classified other
than SA, is the % built-upon area < 30%? Yes No
STORMWATER COLLECTION SYSTEM
Is the only kind of
Yes x No
(Grassed-line swalc
less.)
stormwater collection
(sloped levees at
should have a side
system grass swales?
4:1)
slope of 3:1 (H:V) or

If no, please provide a detailed description.
All runoff will enter the constr-,:cted_ponds o d tent-ion ditches.

BUFFERAREA
Is the built-upon area at least 30 feet from mean high water of
all surface waters? Yes x No
If no, please provide a detailed description.
See Attached Plan
(Note: Only boat ramps, public roads, public bridges and
walkways to water related facilities are allowed within 30 feet
of mean high water if the project is intended to meet stormwater
control requirements through densLty limits.)
DEED RESTRICTIONS AND PROTECTIVE COVENANTS
Do the deed restrictions and protective covenants ensure that
subdivisions maintain the develo_ment consistent with the plans
and specifications approved by the division and include the State
as a beneficiary of the restrictions? Yes No N/A
(Include a copy of the restrictions and covenants with this
form.) N/A
CERTIFICATION
I, . Rob Moul , certify that the information
included on this submittal form is correct, that the project will
be constructed in conformance with this information, and that to
the best of my knowledge, the proposed project complies with the
requriement of 15 NCAC 2H.1003 ).
jam' ';71 , =dent 4-12-90
Signature-Own&r or J:gent Date
Timber & Land Management Consultants, Inc.
Address P.O. Box 14-1, Wilmington, NC 28402-1471
If agent, please list owner's name and address below:
(Same as Shown on Front)
DIVISION OF ENVIRONMENTAL MANAGEMENT SIGN-OFF
Regional Office j
ate I dividual Evaluating Forms/Plant
Original Signed UP
VA9 T. L. Bush, Jr..
Dat Regional Water Quality Supervisor
cc: Applicant/Region/Mills/CF
Enclosures
?- n? -
United States Department of the Interior
4
FISH AND WILDLIFE SERVICE Mg
Raleigh Field Office
Post Office Box 33726
"j Raleigh, North Carolina 27636-3726 e
o is
April 20, 1989
) 7,,:)
Lt. Colonel Thomas C. Suermann e aMAY District Engineer ?z ;
U. S. Army Corps of Engineers N
Cli
P.O. Boy: 1890
Wilmington, North Carolina 28402 [ f
zi.7?
Dear Lt. Colonel Suermann:
This is the report of the U.S. Fish and Wildlife Service (Service) on Public
Notice CE-SAWC090-I1-016-0219, dated Ilarch 12, 1990, concerning a proposal by
Pamlico Aquafarms, Inc., to place fill material in palustrine emergent
wetlands at Smyrna Farms, Carteret County, North Carolina. According to the
Public Notice, the applicant proposes to use the fill material to create 74
ponds and associated facilities for a striped bass-white bass aquaculture
operation. This report is submitted in accordance with provisions of the
Fish and Wildlife Coordination Act (16 U.S.C. 661-667e) and Section 7 of the
Endangered Species Act of 1973, as amended (16 U.S.C. 1531-1543). It is to
be used in your determination of 404(b)(1) compliance (40 CFR 230) and your
public interest review (33 CFR 320.4) as they relate to the protection of
fish and wildlife resources.
According to April, 1982, aerial photography, the entire site was undergoing
conversion from wetlands to agriculture at that time. The Se mice's draft
National Wetland Inventory (ITWI) mapping of the site, copy attached, depicts
the area as a mosaic of palustrine emergent, scrub-shrub, and forested
wetlands with uplands located around the periphery of the tract. According
to Service NWI maps, all wetlands present on the site were partially
"ditched/drained" by April, 1982.
Soils underlying the site consist mainly of Deloss fine sandy loam, with
smaller areas of•Tomotley fine sandy loam, Wasda muck and Altavista loamy
fine sand (Goodwin, R.A. 1987. Soil Survey of Carteret County, North
Carolina. U.S. Department of Agriculture, Soil Conservation Service,
Raleigh, NC. 155 pp. + plates). A copy of the soils map is attached. The
first three series are hydric in an unaltered condition and may remain so
even with alteration depending upon the degree to which drainage is
effective (U.S Department of Agriculture. 1989. Hydric Soils of North
Carolina. Soil Conservation Service, Raleigh, ITC. Unpaginated.).
A Service biologist visited the site on January 30, 1990. Habitat on the
545-acre site proposed for development consists presently of palustrine,
emergent wetlands with some upland areas. The entire tract has been removed
from cropland status and placed in the U.S. Department of Agriculture's
Agricultural Conservation Reserve program for the last four years. It
appears to the Service, based on plant communities on the site and the
observed depth to the water table during the site visit, that portions of
the site may qualify as upland.
Vegetation present on the tract consists of scattered shrubs, including wax
myrtle (Myrica cerifera-facultative +), and herbaceous species such as bushy
bluestem (Andropogon alomeratus-facultative wet +) in the wetter areas and
dog fennel (Eupatorium capillifolium-facultatiave up) in the drier portions.
Wildlife species detected or observed on the site include whitetail deer
(0docoileus virainianus), harrier (Circus cyaneus), American kestrel (Falco
sparverius) and other passerine migratory bird species. The site is located
in the headwaters of two tidal creek systems, IVards Creek to the west and
Ililliston Creek to the east. Both I-lards and Williston Creeks are designated
as Primary Nursery Areas by the N.C. Division of Marine Fisheries, and both
are classified as "SA" eaters by the N.C. Division of Environmental
Management. The "SA" classification is the highest designation which can be
applied to estuarine eaters and is reflective of the high quality habitat
present within these two nursery areas.
The applicants propose to construct an aquacultural facility on the entire
545-acre tract during a four-year period. The total plan of development is
addressed in the Public Notice and includes: construction of 74 ponds,
averaging 6.7 acres each with 4-foot average depths; office building;
parking lot; 2 pole barns; and various small storage buildings. Seater for
the proposed facility would be withdrawn from wells drawing groundwater from
the Castle-Hayne Aquifer underlying the site as well as from an unnamed
tributary of Wards Creed:. The site is located in a designated Capacity Use
Area and Mater Use Permits will be required from the N.C. Department of
Environment, Health and Natural Resources. Discharge from the facility
would be routed through a settling pond before flowing through approximately
three miles of existing ditches to the headwaters of Williston Creek.
Intake of brackish water from Wards Creek would occur through an existing
canal, proposed for additional excavation to a depth of three feet.
Brackish water totalling 300,000 cubic feet, approximately 2.25 million
gallons, is proposed for storage in existing ditches along the southwestern
sides of the facility.
Some impacts of the proposed project are addressed in the Public Notice and
supporting materials; however, additional impacts will occur which are
either not addressed or are insufficiently documented. Such impacts
include: the alteration of the unnamed tributary of t9ards Creek; the need
for long-term maintenance dredging and spoil disposal of the intake canal;
entrainment of organisms from Wards Creek; floe and salinity alterations
within Z•Jards Creek;' replacement of fresh water in canals on the tract with
brackish water affecting fish and wildlife and possibly adjacent croplands;
depression of groundwater under the site and adjacent wetlands; reduction of
baseflows in area streams; changes in stormwater storage and release
patterns; changes in wildlife use of the site; creation of an attractive
nuisance for migratory fish-eating birds; potential escape of hybrids into
public waters; and changes in salinity and volumes of waters flowing from
the site to S?illiston Creek. The Ser,-ice believes these issues must be
addressed fully in order to adequately assess project impacts.
The Service places considerable value on palustrine emergent wetlands,
especially those which have a high potential for restoration to their
original palustrine, forested or scrub`-shrub (pocosin) status such as the
tract in question. The values of palustrine scrub-shrub and forested
wetlands have become better understood in recent years and are described in
the Service publication: "The Ecology of Southeastern Shrub Bogs (Pocosins)
and Carolina Bays: A Community Profile" (Sharitz, R.R. and J.I-). Gibbons.
1982. U.S. Fish and Wildlife Service. FVIS/OBS-82-04. 93 pp.). In
general, the dense vegetation of scrub-shrub and forested wetlands serves as
resting, feeding, nesting and sometimes critical refuge habitat for such
diverse fauna as black bear, raccoon, American woodcock, and pine barrens
treefrog as well as a variety of passerine songbirds, rodents, and several
reptilian species. Seasonally available eater frequently serves as breeding
and larval habitat for an unusually pride variety of amphibians. In
addition, these wetlands can serve a critical role in regulating the flow of
freshwater to nearby coastal estuaries, thereby maintaining optimal salinity
levels for the productive sport and commercial fisheries of North Carolina.
Palustrine forested, scrub-shrub and emergent wetland acreages have been
declining nationally (Hefner, J. and J. Bro;m. 1984. Wetlands 4:1-11.). In
the tiro-decade period between the early 1950's and 1970'0 palustrine scrub-
shrub wetlands were reduced nationally by 3.5 percent (Frayer, W.E., T.J.
ISonahan, D.C. Bowden and F.A. Graybill. 1983. Status and Trends of
Wetlands and Deepwater Habitats in he Conterminous United States: 1950's to
1970's. U.S. Fish and Iildlife Service, Washington, D.C. 32 pp.), but the
losses of this habitat type in the Southeast during the same timeframe are
estimated to be 23 percent, almost seven times the national loss rate
(Hefner and Bro%m 1984). Shetlands on the site are presently emergent but
will succeed to scrub-shrub if they are not further developed or returned to
agricultural use.
Based on the above-described habitat values and the fact that such areas are
relatively scarce or becoming scarce on a national basis or in the
ecoregion, the Service's Mitigation Policy (Federal Register 46(15):7656-
7663, January 23, 1981) goal generally calls for no net loss of in-kind
habitat value. After minimizing losses of such habitats, the unavoidable
losses should be replaced ?,ith similar habitat values so that populations of
the species associated with the habitats will remain relatively stable in
the area over time., Specific ways tc achieve this include: 1) physical
modification of replacement habitat to convert it to the same type lost; 2)
restoration or rehabilitation of previously altered habitat; 3) increased
management of similar replacement habitat so that the in-kind value of the
lost habitat is replaced; or 4) a combination of measures. We have
enclosed a copy of the Service's Mitigation Policy for transmission by the
Corps to the applicant to assist them in project planning.
The enclosed page identifies federally protected endangered (E) and
threatened (T) species as well as species formally proposed for Federal
protection (PE or PT) which may occur in the area of influence of this
action. The legal responsibilities of a Federal agency under Section 7 of
the Endangered Species Act of 1973, as amended, were detailed in material
sent to you previously. If you would like another copy of this material, or
if you have questions, please contact this office.
The Service is supportive of aquaculture in general, as reflected in Service
aquaculture policy and by the Memorandum of Understanding on aquaculture
recently signed by the Service and the N.C. Department of Agriculture.
However, the Service is concerned about the potential effects of the
proposed project on fish and wildlife resources both on and off the project
site. Many of the issues of concern to the Service were brought to the
attention of the applicant and the Corps by the Service and other regulatory
and regulatory review agency staff during the January 30, 1990 site visit.
The information provided within the Coastal Area Management Act application
is insufficient for the Service to make complete recommendations regarding
the proposed project at this time. Therefore, we recommend that no
Department of the Army permit be issued for this project until such time as
an Environmental Assessment is prepared.
The following issues and information should be addressed in the
Environmental Assessment in order to facilitate the Service's review of the
proposed project. The applicants should:
1) Assess the impact of water withdrawal on the following Wards
Creek Primary Nursery parameters: number and species of organisms
entrained; salinity within the unnamed Wards Creek tributary; flow
direction, strength and duration within the tributary;and
freshwater, nutrient and detrital input into the tributary.
2) Develop a plan for the return of entrained fish and crustaceans from
the project area back to the public graters.
3) Assess the impact of the proposed brackish eater storage within
the existing canals on: existing fish and wildlife species using
the ditches and canals; and crops or adjacent wetlands which may be
subjected to saltwater intrusion.
4) Assess the impact of the proposed freshwater withdrawal from the
Castle Hayne aquifer on: the water table beneath the site;
on adjacent wetlands; on baseflows within the adjacent Primary
Nursery Area stream systems; and assess the cumulative impacts of
this withdrawal both on the Carteret County area and to the
surrounding areas.
5) Compare the present water budget for the site with that which would
exist with the project in place in terms of stormwater retention,
runoff, evaporation and evapotranspiration and release.
6) Assess present use of the site by wildlife in comparison to the
potential for such use with the project in place.
7) Provide a plan for controlling avian predators for Service review.
8) Assess the potential impacts of the escape of striped bass-white
bass hybrids into the adjacent primary nursery areas, including
analysis of the probability of overtopping of pond dikes by
flooding during the 100-year flood event.
9) Assess the likely characteristics of the facility's point source
discharge in terms of nutrients, suspended solids, biological oxygen
demand, and pesticides at the discharge point as well as doimstream
at the Williston Creek Primary Nursery Area.
10) Compare the volumes and salinity of the proposed discharge with the
existing inflow salinity and volumes from the site to Williston
Creek and assess the changes that may occur.
11) Assess which species presently use the Williston Creek Primary
Nursery Area and how they may be affected by the proposed
discharge.
12) Develop a plan for avoiding and minimizing expected impacts of
discharged waters.
13) Assess an alternative water management strategy which would employ
deeper wells withdrawing saline, cooler water from beneath the
Castle Hayne aquifer and eliminate the need for the proposed primary
nursery intake and interbasin transfer of water.
14) Consider an additional alternative which would discharge into Wards
Creek, at or near the proposed intake, rather than Williston Creek.
The Service appreciates the opportunity to provide comments on the proposed
project. We would be pleased to meet with you, your staff, or the applicant
to discuss our concerns.
Sincerely,
Rik
L.K. Mike Gantt
Supervisor
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REVISED SERMIBER 11, 1989
Carteret County
Green sea turtle (Chelonia mydas) - T
Peregrine falcon (Falco peregrinus) - E
Roseate tern (Sterna dougallii dougallii) - E
--Eastern cougar (Felis concolor cougar) - E
Bald eagle (Haliaeetus leucocephalus) - E
Piping plover (Charadrius melodus) - T
Red cockaded woodpecker (Picoides borealis) - E
Leatherback sea turtle (Dermochelys coriacea) - E
Loggerhead sea turtle (Caret ta caretta) - T
Rough-leaved loosestrife (Lysimachia asperulaefolia) - E
There are species which, although not now listed or officially proposed for
listing as endangered or threatened, are under status review by the
Service. "Status Review" (SR) species are not legally protected under the
Act, and are not subject to any of its provisions, including Section 7,
until they are formally proposed or listed as threatened or endangered. We
are providing the below list of status review species which may occur
within the project area for the purpose of giving you advance notification.
These species may be listed in the future, at which time they will be
protected under the Act. In the meantime, we would appreciate anything you
might do for them.
Bachman's sparrow (Aimophila aestivalis) - SR
Carolina gopher frog (Rana areolata capito) - SR
Loose watermilfoil (Myriophyllum laxum) - SR
Beach amaranth (Amaranthus pumilus) - SR
Riverbank sandreed (Calamovilfa brevipilis) - SR
Ca?+s ?cte,4ed exf m? ? NG

?ENI O{ /
o? ??11 / ? `r<
United States Department of the Interior
FISH AND WILDLIFE SERVICE
11{111{?1I.. '{3?{?iJJ/{i??/{{..
1LF?F?b?7
0
v e
t Raleigh Field Office
Post Office Box 33726
North Carolina 27636-3726
DW OFE,%', July 20, 1990
:iE`wT,?f R01, E1,1r?ft
,1P Ir?rj F7Y 1
,.c
Lt. Colonel Thomas C. Suermann
District Engineer
U.S. Army Corps of Engineers
P.O. Box 1890
Wilmington, North Carolina 28402
Dear Lt. Colonel Suermann:
??a3n31J?; ??.
JUL193

X11' u
This responds to Dr. G. Wayne Wright's June 21, 1990, letter requesting the
U.S. Fish and Wildlife Service's (Service) comments on supplemental material
provided by the applicants in reference to Public Notice CESAW-0090-N-016-
0219. The applicants, Pamlico Aquafarms, Inc., propose to place fill
material in wetlands to construct a commercial aquaculture facility near
Otway, Carteret County, North Carolina. This report supplements our
previous report of April 20, 1990, and is submitted in accordance with
provisions of the Fish and Wildlife Coordination Act (16 U.S.C. 661-667e)
and Section 7 of the Endangered Species Act of 1973, as amended (Act) (16
U.S.C. 1531-1543).
The supplemental material provided for Service review consists of a June 15,
1990, letter from Mr. Greg Montgomery to the N.C. Division of Coastal
Management (DCM), and two June 15, 1990, memoranda from the applicant to Mr.
David Noble of the DCM. The memoranda consist of a revised water management
plan for the project, and an Environmental Assessment (EA) which responds to
issues raised by the Service in our previous report. The EA includes nine
Exhibits which provide supplemental data supporting the applicants'
assessment of project-related impacts. The Service also has coordinated
with the applicant and representatives of regulatory review agencies
regarding the additional discussion of project impacts which occurred during
and after the July 12, 1990, meeting held in Morehead City, North Carolina,
and met independently with the applicant and DCM representatives on July 19,
1990. During that meeting the applicant provided the Service a letter dated
July 18, and memorandum dated July 16, 1990, containing further revisions to
the water management plan for the proposed facility.
Although we do not concur fully with the applicant's assessment of impacts
likely to result from the proposed project, the information provided is
sufficient for the Service to develop and recommend conditions which will
partially avoid and/or reduce project impacts on fish and wildlife
resources. As a result of coordination with personnel of the Service's
Fisheries Program following the July 12 meeting, the applicant projects
reductions in water use which are reflected in the July 16 water management
plan. Additional reductions may occur subsequent to project operation. We
understand also, based on discussions with Mr. Hugh Heine of your staff,
that groundwater monitoring data have been submitted for review by the
applicant and that no decision has been made regarding the wetland character
of the site at this time. The Service has taken these factors into
consideration during the formulation of both its assessment of project
impacts and development of recommended conditions, including mitigation
measures.
The applicants' memoranda indicate the following changes in the project
description: the size of the facility is 575 acres rather than 545; the
period of total project development is now 5 years, rather than 4; well size
presently proposed is 1, 6-inch and 4, 14-inch wells, rather than the
originally-proposed 6- and 12-inch wells; the location of the proposed
brackish water storage sump is now the southwest existing drainage ditch
rather than the southeast; and the discharge volumes proposed would average
1,298 gallons per minute (gpm). Detailed information regarding the water
management plan is provided in the applicants' memoranda. The applicant
presently plans to withdraw brackish water from the unnamed tributary to
Wards Creek via subaqueous pipeline rather than maintaining the existing
canal as originally proposed, and plans to submit a revision to that effect.
Based on the information provided to the Service by the applicant,
potentially significant changes will occur in the unnamed tributary of Wards
Creek proposed for location of the intake. These changes include:
increased salinity, flow reversal, reduction of freshwater input, and
transfer of nutrients and detritus from the tributary into the sump and
ponds on the project site. Some of these changes have been quantified by
the applicants through hydrological modelling which indicates that salinity
and velocity increases and flow reversals will occur during pumping. The
net effect of such changes will depend on the duration, frequency and
magnitude of withdrawal; however, it appears that at a minimum freshwater
organisms will be replaced by estuarine organisms.
Withdrawal of water from the tributary will result also in some level of
entrainment, despite the measures proposed by the applicant for reduction of
that impact. Data provided by the N.C. Division of Marine Fisheries (DMF)
to the applicant demonstrate that Wards Creek is typical of other designated
Primary Nursery Areas with regard to species composition and abundance.
Although distance and protective screening are cited as factors which will
reduce or eliminate entrainment, the intake is located only slightly more
than one mile from Wards Creek, a distance easily traversed by larvae and
postlarvae recruited from miles offshore, and the 1/4 and 1/8 screens
proposed for use will only partially inhibit the passage of organisms which
are routinely sampled using mesh size in the 500-700 micron range.
Screening of discharge pipes during pond filling by the applicant may
prevent entry of entrained organisms into the ponds but will result in their
destruction.
Conversion of the site from vegetated habitat to deepwater habitat and the
replacement of the present freshwater regime with a brackish water one will
also have significant effects on use of the site by fish and wildlife
resources. Data provided by the applicants in Table 1 of the June 15, 1990,
water management plan memorandum indicate that upon completion of the entire
project, 80 percent of the site will consist of open water within ponds.
The remaining habitat on the site will consist of building pads, levees,
roads and ditches. The Service does not concur with the applicants'
conclusion that current use of the site by wildlife will not be affected by
these changes. At a minimum, there will be a reduction in use of the site
by species which use old field or palustrine emergent wetland habitats, with
an accompanying increase in use of the site by species which use brackish
water aquatic habitats, including predatory fish-eating birds. Additional
changes will occur due to the elimination or displacement of freshwater
species and replacement by those which are tolerant of brackish water. Some
of the species documented on the site by the applicant are tolerant of low
salinity, while others are not. These changes will occur gradually for the
next five years as the project is constructed.
Impacts of the proposed discharge through existing ditches and ultimately
into Williston Creek remain uncertain. Modelling performed by the applicant
using the June 15 water management data suggest that discharge from the site
will increase substantially by 77 percent, but that the percentage in terms
of net increase for the entire basin is only 11.7 percent. Modelling
indicates also that salinity changes of several parts per thousand will
occur. The Service concurs with the applicants' assessment that the
response of estuarine organisms to the changes will depend in part on the
rapidity of change, which the applicant proposes to minimize through
establishment of a "storage buffer" comprised of the settling pond and
ditches surrounding the facility and leading to the Williston Creek
discharge point. It appears to the Service that the applicants'
calculations indicating the presence of a-56-hour buffer actually reflect
residence time within the system, rather than any actual buffering capacity,
since the system will remain full once discharge begins. The only buffering
capacity in the system will derive from whatever storage capacity exists in
the drainage ditches above the two-foot level, in which discharge will be
allowed to flow slowly through holes drilled in the retainer panels.
Discharges from the facility will still be irregular in both magnitude and
duration based on the July 16 management plan, on both a seasonal and daily
basis, since the applicant plans to discharge primarily at night when
utility rates are more favorable. The Service does recognize and appreciate
the fact that the seasonal discharge maxima have been shifted to the fall in
order to avoid the more sensitive period of nursery area use.
Other issues of concern to the Service which were raised in our previous
report appear to have been satisfactorily addressed in the EA. The Service
urges the Corps to contact the U.S. Geological Survey regarding review of
the potential for saltwater intrusion, groundwater depletion and withdrawal
of saline waters from deep wells.
It is our understanding that the hydrology of the project site is still
being studied and analyzed by the Corps. The Service continues to believe
that is is premature to make and wetland mitigation recommendations until a
final jurisdictional determination has been rendered by your staff. At that
time, the Service will make appropriate recommendations.
The Service recommends that the following conditions be included in any
Department of the Amry permit issued for the project to avoid and minimize
impacts resulting from the proposed intake, discharge and onsite activities:
1. Screens of 1/4 and 1/8 inch dimensions, as. proposed by the
applicant, shall be emplaced within the unnamed tributary of Wards Creek
downstreamof the proposed intake to prevent entrainment of juvenile
estuarineorganisms and retard entrainment of larval and postlarval
organisms.
2. Waters withdrawn from the unnamed tributary of Wards Creek shall be
sampled for entrained organisms in a manner sufficient to determine the
quantity and species composition of those affected. The sampling plan
shall be subject to review and approval of the Service, National Marine
Fisheries Service (NMFS), and N.C. Division of Marine Fisheries (DMF).
At a minimum, sampling shall be conducted during the initial year of
operation through the time period of maximum potential for entrainment
as determined by the DMF, and be conducted by the applicant across the
full range of potential intake rates. Should sampling results, as
reviewed and concurred in by the Service, NMFS and DMF,reflect minor
impacts as determined by the agencies, sampling may be discontinued and
no further measures will be necessary other than the screening proposed
by the applicant.
3. The volume, salinity, time and date of waters withdrawn from the
unnamed tributary of Wards Creek shall be recorded by the applicant and
provided to the regulatory review agencies to verify the proposed
withdrawal schedule.
4. Should the required sampling reflect the withdrawal of water volumes
and/or entrained organisms beyond the levels anticipated by the
applicant and at levels determined significant by the regulatory review
agencies, the applicant shall develop a plan for mitigating the adverse
impacts of the withdrawals.
5. In order to prevent the escape of hybrid striped bass into adjacent
estuarine waters, fingerling ponds shall be screened with 1/8-inch mesh
at the outflow, and growout ponds shall be screened with 1/4-inch mesh
at the outflow.
6. The volume, salinity, time and date of waters discharged from the
facility shall be recorded by the applicant and provided to the
regulatory review agencies to verify the proposed discharge schedule.
7. The Service anticipates that the proposed facility will attract
Federally-protected fish-eating migratory birds. The applicant should
contact the U.S. Department of Agriculture, Animal Damage Control for
information regarding measures for controlling birds and for obtaining
depredation permits should that become necessary.
From discussions with the applicants, we understand they are considering
arranging with qualified investigators to conduct studies required by the
permit conditions, or other studies which may benefit the applicant or
operators of similar facilities. Such studies may include studies of the
intake and discharge characteristics and associated organisms and the impact
of avian predation upon the facility, as suggested by the applicant. We
would be supportive of such studies.
The Service appreciates the opportunity to provide comments on this project.
We would pleased to meet with you, your staff, or the applicant to discuss
our concerns. We anticipate further coordination with you regarding the
extent of Corps jurisdiction on the project site.
Sincerely,

L.K. Mike Gantt
Supervisor
t. NOTICE OF FILING OF
t- APPLICATION FOR CAMA MAJOR DEVELOPMENT
PERMIT AND WATER QUALITY CERTIFICATION
APR
c?a ?b 1TE oU ^ r 1r
?ti ?(nning Cra ??/
nc
The Department of Environment, Health and Natural R ?g rces
hereby gives public notice as required by NCGS 113A-119(b) c?W
143-215 3(a)(1)(c) that Pamlico Aquafarms of Carteret County,
filed an application on February 15, 1990, for a permit from the
Division of Coastal Management to develop in an Area of
Environmental Concern and for certification from the Division of
Environmental Management that a discharge of fill material in
project wetlands will not violate applicable water quality
standards.
According to said application, the applicant is proposing to
construct a 545 acre aquaculture operation with 74 rearing ponds
for finfish production on property located on Smyrna Farms, near
the community of Smyrna, Carteret County. In addition to the
pond construction, existing drainage ditches in the farm fields
will be filled. An existing ditch in Wards Creek is proposed to
be excavated for the purpose of withdrawing pond water. Excess
pond water will be discharged into an existing ditch which enters
Williston Creek.
A copy of the entire application and additional information
may be examined (or copies furnished upon request and payment of
reproduction costs) during normal business hours at the office of
David Noble, Division of Coastal Management, located in the
Division of Marine Fisheries Building, Morehead City, N.C.,
919/726-7021, and/or the office of Preston Howard, Division of
Environmental Management, DEHNR Regional Field Office,
Wilmington, N.C., 919/256-4161.
The Division of Environmental Management proposes to take
final action on this water quality certification on or before
April 22, 1990. The issuance of the CAMA Major Development
permit and the Section 401 Certification may deviate from this
projected date depending upon the nature of the comments
submitted and subsequent hearings that may result.
All persons desiring to make comments should do so in
writing to Dr. George Everett, Director, Division of Coastal
Management, P.O. Box 27687, Raleigh, N.C., 27611, prior to
April 17, 1990 for consideration in the CAMA permit decision, and
to Mr. Bill Mills, Division of Environmental Management, P.O. Box
27687, Raleigh, N.C., 27611, prior to April 12, 1990 for
consideration in the water quality certification decision. Later
comments on the CAMA application will be accepted and considered
up to the time of permit decision. Project modifications may
occur based on review and comment by the public and state and
federal agencies. Notice of the permit decision in this matter
will be provided upon request.

PUBLISHED ON: Wednesday, March 28, 1990

State of North Carolina
Department of Environment, Health, and Natural Resources
Division of Environmental Management
512 North Salisbury Street O Raleigh, North Carolina 27611
James G. Martin, Governor April 19, 1990 George T. Everett, Ph.D.
William W. Cobey, Jr., Secretary Director
MEMORANDUM
,
TO: :Jo h /11Parker
FROM: ll Mills 6 SUBJECT: Application for CAMA Permit
Pamlico Aquaf arms
Carteret County
The Subject application has been reviewed for water quality
impacts and the following comments are offered:
a) The proposed project will require a 401 Water Quality
Certification. Final comments will not be submitted
until a decision is made on the 401 Certification.
(Please send a copy of the joint public notice).
b) The application does not provide sufficient information
concerning the control of stormwater runoff. The
applicant has been advised of the additional information
needed. (copy of letter attached).
It is recommended that the LAMA application be placed on hold
until the applicant provides the necessary information.
BM/kls
cc: Preston Howard
Pollution Prevention Pays
P.O. Box 27687, Raleigh, North Carolina 27611-7687 Telephone [phone]
An Equal Opportunity Affirmative Action Employer
y ?MAR?1,??
State of North Carolina
Department of Environment, Health, and Natural Resources
Wilmington Regional Office
James G. Martin, Governor Bob Jamieson
William W. Cobey, Jr., Secretary 1 t? anager
DIVISION OF ENVIRONMENTAL MANAGEMENT
March 20, 1990
Mr. Greg Montgomery
c/o Pamlico Aquafarms Incorporated
3344 Hillsborough Street
Raleigh, North Carolina 27607
Subject: Information Request
Project No. 900310
Pamlico Aquafarms
Carteret County
Dear Mr. Montgomery:
(P ?y iLv
The Wilmington Regional office received a copy of the plans
for Pamlico Aquafarms on March 20, 1990. At this time a
submittal for Stormwater Certification has not been submitted.
Mr. Rob Moul of Timber and Land Management was contacted on
March 20, 1990 and per that discussion he indicated that the
proper submittal will be submitted in the near future.
The following information is needed to complete the
submittal.
For projects using density limits approach.
A site plan that clearly indicates all built-upon
areas (i.e., streets, driveways, walkways,
building footprints, etc.).
Computations showing the percent built upon areas,
/ both existing and planned.
? A copy of deed restriction(s) and restrictive
covenants which include the State as a
beneficiary.
The attached submittal form should be completed
/ for projects using the density limits approach.
? Other, property boundaries should be clearly
indicated.
7225 Wrightsville Avenue, Wilmington, N.C. 28403-3696 0 Telephone [phone] Fax [phone]
Mr. Montgomery
March 20, 1990
Page -2-
Please be reminded that construction of the subject project
may not commence prior to approval of the Stormwater Management
Plan. We will make every attempt to assist you in any way we
can. If you have any questions, please call Paul Rawls, at
telephone number [phone].
Since ,
L. Bush, Jr.
-Regional Water Quality Supervisor
Attachments
PER:900310.14AR
cc: Rob Moul, Timber & Land Management
IIll_ `?i:?.lls
WiRO, CF
DEPARTMENT OF THE ARMY
WILMINGTON DISTRICT, CORPS OF ENGINEERS
P.O. BOX 1890
WILMINGTON. NORTH CAROLINA 28402.1890
March 13, 1990
IN REPLY REFER TO
Regulatory Branch
SUBJECT: File No. CESAW-C090-N-016-0219
Pamlico Aquafarms, Incorporated
3344 Hillsborough Street
Raleigh, North Carolina 27607
Gentlemen:
Reference your application for Department
to construct intake and outfall structures and
associated with construction of 74 ponds for a
facility on Wards Creek, near Otway, Carteret

1 1 T 1,1R
:.
C\J j? - '.

of the Army (DOA) authorization
place fill material in wetlands
striped bass aquacultural
County, North Carolina.
On February 6, 1990, the DOA and the U.S. Environmental Protection Agency
(EPA) signed a memorandum of agreement (MOA) establishing procedures to
determine the type and level of mitigation necessary to comply with the Clean
Water Act Section 404(b)(1) Guidelines. This MOA provides for first, avoiding
impacts to waters and wetlands through the selection of the least damaging,
practical alternative; second, taking appropriate and practical steps to
minimize impacts on waters and wetlands; and finally, compensating for any
remaining unavoidable impacts to the extent appropriate and practical. To
enable us to process your application in full compliance with this MOA, we
request that you provide the following additional information:
a. Permits are available only for work dependent upon being located
within an aquatic site and being the least environmentally damaging,
practical alternative. Please furnish information regarding any other
practical alternatives, including upland alternatives, to the work for
which you have applied and provide justification that your selected
plan is the least damaging to water or wetland areas.
b. It is necessary for you to have taken all appropriate and
practical steps to minimize wetland losses. Please indicate all that
you have done, especially regarding development and modification of
plans and proposed construction techniques, to minimize adverse
impacts.
c. The MOA requires that appropriate and practical mitigation will be
required for all unavoidable adverse impacts remaining after all
appropriate and practical minimization has been employed. Please
indicate your plan to mitigate for the projected, unavoidable loss of
waters or wetlands or provide information as to the absence of any
such appropriate and practical measures.
-2-
This information is essential to our expeditious processing of your
application and it should be forwarded to us by April 12, 1990. If you have
questions, please do not hesitate to contact Mr. Hugh Heine, Regulatory
Branch, telephone [phone].
Sincerely,
G. Wayne Wright
Acting Chief, Regulatory Branch
Copies Furnished:
U.S. Environmental Protection
Agency - Region IV
Wetlands Section - Water Quality Branch
,/345 Courtland Street, N.E.
Atlanta, Georgia 30365
Mr. John Parker
Division of Coastal Management
North Carolina Department of
Environment, Health and
Natural Resources
Post Office Box 27687
Raleigh, North Carolina 27611-7687
Mr. Charles Jones
Morehead City Regional Office
North Carolina Division of
Coastal Management
Post Office Box 769
Morehead City, North Carolina 28557

?.. DEPARTMENT OF THE ARMY
WILMINGTON DISTRICT, CORPS OF ENGINEERS
ti P.O. BOX 1890
WILMINGTON, NORTH CAROLINA 28402.1890

March 14, 1990
IN REPLY REFER TO
Regulatory Branch
SUBJECT: File No. CESAW-C090-N-016-0219
Mr. William Mills
Water Quality Section
Division of Environmental Management
North Carolina Department of Environment,
Health and Natural Resources
Post Office Box 27687
Raleigh, North Carolina 27611-7687
Dear Mr. Mills:

4
? )
9

Enclosed is the application of Pamlico Aquafarms, Incorporated, for
Department of the Army authorization and a State Water Quality Certification
to construct intake and outfall structures and place fill material in wetlands
associated with construction of 74 ponds for a striped bass aquacultural
facility on Wards Creek, near Otway, Carteret County, North Carolina. Your
receipt of this letter verifies your acceptance of a valid request for
certification in accordance with Section 325.2(b)(ii) of our administrative
regulations.
We are considering authorizing the proposed activity pursuant to Section
404 of the Clean Water Act, and we have determined that a water quality
certification may be required under the provisions of Section 401 of the same
law. A Department of the Army permit will not be granted until the
certification has been obtained or waived.
In accordance with our administrative regulations, 60 days after receipt
of a request for certification is a reasonable time for State action.
Therefore, if you have not acted on the request by May 14, 1990, the District
Engineer will deem that waiver has occurred.
Questions or comments may be addressed to Mr. Hugh Heine, telephone
[phone].
Sincerely,
%G W ne Wri ht
Acting Chief, Regulatory Branch
Enclosure
-2-
Copies Furnished (without enclosure);
Mr. John Parker
Division of Coastal Management
North Carolina Department of
Environment, Health and
Natural Resources
Post Office Box 27687
Raleigh, North Carolina 27611-7687
Mr. Charles Jones
Morehead City Regional Office
North Carolina Division of
Coastal Management
Post Office Box 769
Morehead City, North Carolina 28557
Please type or print. Carefully describe all an-
ticipated development activities, including construc-
671n, excavation, filling, paving, land clearing, and
stormwater control. If the requested information is
not relevant to your project, write N/A (not ap-
plicable). Items 1-4 and 8-9 must be completed for
all projects.
1 APPLICANT
a. Name Pamlico Aquafarms Inc.
Address 3344 Hillsborough St.
City Raleigh State N - C -
Zip __23_fiD7 -J Day phone ( 9 1 2?8 2 1 - 1; B 2 0
Landowner or X Authorized agent
b. Project name (if any)
Same
C. If the applicant is not the landowner, also give
the owner's name and address.
??SMYRNA Farm-,"
M & N\ Assoc Limited Partnership
109 ri=
s ffnl k Va 7"14'14 { R n 4 ) 1; 1q_8111
2 LOCATION OF PROPOSED
PROJECT
a. SSrrree ddre s seconda roa ber
Nor ? of °Junctioi o .r t. 1 325 70
b. City, town, community, or landmark vT
SMYRNA Farms North of Otwav
c. County Carteret
d. Is proposed work within city limits or planning
jurisdiction? No
e. Name of body of water nearest project
Ward Creek
3 DESCRIPTION AND PLANNED
USE OF PROPOSED PROJECT
d. Dnc construct planned aus5 ?5 t acrreject.
Aqua culture operation witn
74 Rearing Ponds for Fin-Fish
Production
4 LAND AND WATER
CHARACTERISTICS
a. Size of entire tract 545 acres of 6000 acre
b. Size of individual lot(s) Avg . Pona - 6. 7 acre
c. Elevation of tract above mean sea level or Na-
tional Geodetic Vertical Datum ± 8 MSL
d. Soil t e(s) and texture(s) of tract 1 0 96 Alta Vista
15- Wasda; 75% Deloss Sand & Clay Loa
e. Ve?ecation n tract Existing fields -
er
summer soy eans ' Pit ro a strap
f. Man-made features now op tract
6-7 ft. deep drainage cii c eslatcir
g. What is the CAMA Land Use Plan Classifica-
tion of the site? (Consult the local land use
plan.)
Conservation Transitional
Developed Community
X Rural Other
h. How is the tract zoned by local government?
rural/residential
i. How are adjacent waters classified?S • A • Ward Cr
j. Has a professional archaeological survey been
carried out for the tract? No
If so, by whom? N/A
5 UPLAND DEVELOPMENT
Complete this section if the project includes any
upland development.
a. Type and number of buildings, facilities, or
structures proposed 1 0 f f i ge b l d . with
parking lot; 2 po e arns an
scattered pump & storage s e s
b. Number of lots or parcels 74 Ponds
a. Describe all development activities you propose c. Density(Give the number of residential units
(for example, building a home, motel, marina, and the units per acre.) N/A
bulkhead, or pier).
Creation of a 545 acre Aqua culture d.
operation on existing fields at
SMYRNA Farms by filling in 16 ditchese
and crating 74 Ponds.
If you plan to build a marina, also complete
and attach Form DCM-MP-2.
b. Is the proposed activity maintenance of an ex-
isting project, new work, or both?
New Work
c. Will the project be for community, private, or
commercial use? f
educational research
Size of area to be graded or disturbed
± 480 acres
If the proposed project will disturb more than
one acre of land, the Division of Land
Resources must receive an erosion and sedimen-
tation control plan at least 30 days before land
disturbing activity begins. If applicable, has a
sedimentation and erosion control plan been
submitted to the Division of Land Resources?
Pending
Give the percentage of the tract within 75 feet
of mean high water to be covered by im-
permeable surfaces, such as pavement,
buildings, or rooftops. l e s s than .5%
1
g. List the materials, such as marl, paver stone,
asphalt, or concrete, to be used for paved
surfaces. gravel access road
& parking area
h. If applicable, has a stormwater management
plan been submitted to the Division of En-
vironmental Management? N/A
i. Describe proposed sewage disposal and/or waste
water treatment facilities. 1 Septic tank
system in Alta Vista soils along
southwest berm
j. Have these facilities received state or local
approval? pending
k. Describe e isstting treatment facilities.
1. Describe location and type of discharges to
waters of the state (for example?, surface runoff,
sanitary wastewater, industrial/commercial
effluent, or "wash down"). When largest
10 acre pond is pumped out a max. of
8 million gallons will be di.sarged
m. Water supply source on-site well
n. If the project is oceanfront development,
describe the steps that will be taken to main-
tain established public beach accessways or pro-
vide new access.
N/A
o. If the project is on the oceanfront, what will
be the elevation above mean sea level of the
first habitable floor?_ _ N/A
6 EXCAVATION AND FILL
e. INFORMATION
a. Describe below the purpose of proposed excava-
tion or fill activities (excluding bulkheads,
which are covered in Section 7).
(INTAKE CANAL) Length
Access channel
(MLW) or (NWL)
Boat basin
Other (break-
water, pier,
boat ramp,
rock jetty)
Fill placed in
wetland or below
MHW
Upland fill
areas
Width Depth
ES
Tt,
620
i9RTn,?
6'

3'

16
70,000
!?C A r l ditc
' 10'
r-c. S
Pond
98 Berms
acre
b. Amount of material to be excavated from
below water level in cuH }ards 4 13 (intake
c. Type of material SiIt?clay oam
d. Does the area to be excavated include marsh-
land, swamps, or other wetlands? Existing Cane
e. High ground excavation, in cubic yards 8 7 8_,6 5 5 c
f. Dimensions of spoil disposal area EL"
g. Location of spoil disposal area Road bed
along side of existing ditch
h. Do you claim title to the disposal area? yes
If not, attach a letter granting permission from
the owner.
i. Will a disposal area be available for future
maintenance?/ yes
if so, where? Along side intake canal
j. Does the disposal area include any marshland,
swamoland,'or water areas? yes - in ditches
k. Will the fill material be placed below mean
high water? No - ordinary water level
1. Amount of fill in cubic yards 14 0, 8 0 0 ( d i t ch(
m. Type of fill material Material from pond
n. Source of fill material on site f i e 1_ d s ava t i
o. Will fill material be placed on marsh or other
wetlands? No - on fields or in ditches
p. Dimensions of the wetland to be filled N/A
q. How will excavated or fill material be kept on
site and erosion controlled? By spreading
out existing ditch berms & grassing
and retaining all areas within pond
berms
r. What type of construction equipment will be
used (for example, dragline, backhoe, or
hydraulic dredge)? Track-hoe; Pan dozer
and dump truck
s. Will wetlands be crossed in transporting equip-
ment to the project site? If yes, explain
the steps that will be taken to lessen en-
vironmental impacts.
N/A
7 SHORELINE STABILIZATION
a. Length of bulkhead or riprap N/A
b. Average distance waterward of mean high water
or normal water level
c. Shoreline erosion during preceding 12 months,
in feet
d. Type of bulkhead material
e. Amount of fill, in cubic yards, to be placed
below mean high water
f. Type of fill material
2
8 ADDITIONAL INFORMATION
-a ,
In addition to the completed application form, the
following items must be submitted:
ttaehAdcopy of the deed (with state application only) or
other instrument under which the applicant claims
title to the affected property. If the applicant is not
claiming to be the owner of said property, then for-
ward a copy of the deed or other instrument under
which the owner claims title, plus written permis-
sion from the owner to carry out the project.
:-nel. An accurate work plat (including plan view and
cross sectional drawings) drawn to scale in black
ink on 8 V2 x 11 white paper. (Refer to Coastal
Resources Commission Rule 7J.0203 for a detailed
description.)
Both Please note that original drawings are preferred and
only high quality copies will be accepted. Blue-line
prints or other larger plats are acceptable only if 16
high quality copies are provided by the applicant.
(Contact the U.S. Army Corps of Engineers regard-
ing that agency's me of larger drawings.) A site or
location map is a part of plat requirements and it
must be sufficiently detailed to guide agency per-
sonnel unfamiliar with the area to the site. Include
county road (SR) numbers, landmarks, and the like.
N/A A stormwater management plan, if applicable, that
may have been developed in consultation with the
Division of Environmental Management.
A list of the names and complete addresses of the
adjacent waterfront (riparian) landowners. These
individuals have 30 days in which to submit com-
ments on the proposed project to the Division of
Coastal Management. The applicant must advise
the adjacent landowners of this opportunity by sen.
ding a copy of the permit application to them by
registered or certified mail. This notification is re-
quired by G.S. 113-229(d).
Certified
Name
Address
Name _
Address
Name-
Address
Mail Receipts Attached
A list of previous state or federal permits issued
for work on the project tract. Include permit
numbers, permittee, and issuing dates.
N/A
Attac?e'heck for $100 made payable to the Depart-
ment of Natural Resources and Community
Development to cover the costs of processing the
application.
N/A A signed AEC hazard notice for projects in ocean-
front and inlet areas.
N/A A statement on the use of public funds. If the
project involves the expenditure of public funds, at-
tach a statement documenting compliance with the
North Carolina Environmental Policy Act
(N.C.G.S. 113A-1 to 10).
9 CERTIFICATION AND PERMIS-
SION TO ENTER ON LAND
Any permit issued in response to this application
will allow only the development described in the
application. The project will be subject to condi-
tions and restrictions contained in the permit.
I certify that to the best of my knowledge, the pro-
posed activity complies with the State of North
Carolina's approved Coastal Management Program
and will be conducted in a manner consistent with
such program.
I further certify that I am authorized to grant, and
do in fact, grant permission to representatives of
state and federal review agencies to enter on the
aforementioned lands in connection with
evaluating information related to this permit ap-
plication and follow-up monitoring of project.
This is t 29th d o January ,
1990 ?
r- V r-" V X St's?i orne III, ,
Landowner or uthorized agent
Send the completed application materials to the
Division of Coastal Management Office nearest you
and the U.S. Army Corps of Engineers. See the
map on the inside front cover for the appropriate
DCM office and addresses and phone number.
AGENT
Rob Moul Inc.
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January 30, 1990
INFORMATION SHEET ON
AQUACULTURE ENTERPRISES, INC. AND
PAMLICO AQUAFARMS, INC.
This Information Sheet is designed to provide background
information on Aquaculture Enterprises, Inc. ("AEI") and its
subsidiary, Pamlico Aquafarms, Inc. ("PAI"), which is developing
a hybrid striped bass facility on Smyrna Farm in Carteret County.
Aquaculture Enterprises was founded in February of 1989 with the
specific mission of researching, developing, financing, and
managing various projects within the aquaculture industry. To
date, AEI is involved in projects as diverse as the establishment
of a commercial grow out facility for hybrid striped bass, the
development of an extensive culture system for shrimp and
crawfish in waterfowl impoundments, the development of a
commercial hatchery and nursery for salt water clams, and the
extraction of chitin from shrimp and crabshell wastes.
The founders of Aquaculture Enterprises bring to the
industry their cumulative expertise in financial, marketing
legal, and general business matters and have teamed up with
individuals possessing the requisite technical expertise to
establish these projects. The founders are Micou M. Browne, W.
Gregory Montgomery, and Stanley Winborne, III; all North Carolina
natives. AEI's initial role in these projects is assisting in
the development of a business plan, organizing and operating a
business entity, raising financing, and establishing a system for
managing the ongoing enterprise. AEI then provides ongoing
financial, marketing, legal and management skills 'to allow the
technical person to concentrate on the operation of the
particular enterprise. Because of the emerging nature of the
aquaculture industry, AEI believes that it brings valuable
business experience to start-up and emerging businesses in this
field. AEI's initial project involves breeding and cultivating
hybrid striped bass through its subsidiary PAI.
Hybrid Striped Bass Market
The striped bass, Morone saxatilis, and its European
counterpart, the sea bass, Dicenthrarchus labrax, have long been
favorite food fish of both Americans and Europeans. Yet, because
of the degradation of wild populations due to overfishing and
pollution and the consequent severe regulation of the wild bass
fishery on the East Coast and in European waters, the wild
harvest is no longer able to satisfy demand. To fill this void,
the cultivation of hybrid stripped bass has become a viable
Y 1
commercial aquaculture enterprise by crossing the female with a
male white bass to obtain a vigorous hybrid striped bass. As an
example of market demand, the wild striped bass fishery in 1973
yielded a high of 15 million pounds with a commercial value of
$50 million. Yet, in 1988, only 1.5 million pounds of Striped
bass were available, with less than one-half million pounds
harvested from the wild and the balance cultivated from
aquaculture farms. A National Science Foundation survey published
in 1987 demonstrates that 80 wholesalers in 14 eastern states
might pay from $3.00 to $3.50 a pound pond side for up to 8.5
million pounds of farm-raised hybrid striped bass if it were
available, and a similar study recently completed by the Virginia
Institute of Marine Sciences confirms similar demand figures.
The market has borne even higher prices domestically, and could
bear similar high prices overseas.
To fill this unsatisfied demand, AEI, based in Raleigh,
North Carolina has developed an aquaculture facility to breed and
cultivate hybrid striped bass. This business will be conducted
through its subsidiary corporation, PAI, which has been
established to capitalize the business and own and operate the
facility.
PAI's current plan calls for an Aquaculture facility to be
developed in four phases over a four year period, with operations
commencing in the second quarter of 1990. PAI's primary goal is
to achieve in the fourth year 472 acres of production ponds,
producing approximately 1.5 million pounds of fish per year,
thereby becoming the largest supplier of pond-raised hybrid
striped bass in the United States and achieving economies of
scale sufficient to lower production and administrative costs to
long-term competitive levels. AEI will arrange financing to
capitalize PAI thought the private placement of equity and/or the
commercial lending of debt.
AEI has contracted with one of the foremost authorities on
breeding and cultivating hybrid striped bass in the United States
to serve as president of PAI. His mission will be to assist in
the development of the plan, to provide the technical expertise
to oversee the establishment of the facility, and to serve as
chief executive officer of PAI once the facility is constructed
and ready to accept fish. PAI will also be involved in
continuing research and development to refine the breeding and
cultivation techniques of other potentially profitable finfish
species. Some of the areas for further development with regard
to hybrid striped bass include developing a private brood stock
and refining spawning techniques and fingerling production.
Additional finfish species to be developed for cultivation
include the flounder, red drum and European sea bass.
The current plan ultimately calls for full-time management
of the President, a maintenance technician, and a pond manager,
and assorted part-time laborers. AEI will provide on-going
management of PAI's marketing, sales, financial, legal affairs
and farm operation through its principals, who are versed in
these areas both individually and through their professional
associations. The permitting required to establish PAI's
aquaculture facility and its operations is currently underway and
is being handled through AEI and its general counsel. PAI also
anticipates working with other hybrid striped bass growers to
establish a trade association designed to influence regulation of
the industry, to set industry standards for production and
marketing, and to help educate the consumer on the benefits of
farm-raised bass over wild bass.
By raising hybrid striped bass in ponds, PAI anticipates
three primary benefits will accrue. First, filling demand with
cultivated fish will relieve pressure on the wild stock, thus
benefitting North Carolina's marine fisheries. Second, PAI
anticipates providing buyers with a dependable and regular supply
of wholesome, pollution-free fish, with consistent size, flavor,
and quality, thus boosting North Carolina's seafood industry.
Due to the controlled harvesting techniques and freshness of the
fish, shelf life in the retail market should be greatly extended.
By locating in Eastern North Carolina, PAI will be close to both
the traditional market for striped bass, the Northeast, as well
as export markets in Europe and the orient. This area is an
ideal region as its affords access to major transportation routs,
has abundant clean fresh and salt water, and is within one day's
distance by road of 65 of the top 100 metropolitan markets in the
United States. Third, by developing a prominent aquaculture
facility in North Carolina, PAI hopes to bring North Carolina to
the forefront of the aquaculture industry and to lead in the
transition from traditional agricultural activities to more
creative and profitable uses of North Carolina's abundant land
resources.
PAI has chosen to locate its facility on Smyrna Farms in
Carteret County, North Carolina. This location proves to be an
ideal site for several reasons. First, its proximity to the
North River and its estuarine waters affords access to saline
waters necessary for the proper water management in cultivating
hybrid striped bass and other finfish species. Second, its
location over the Castle-Hayne aquifer affords access to abundant
fresh water. Third, the clayey soils of the site allow for good
compaction in building the impoundments without having to bring
in or remove fill material, thus reducing the expense of building
the ponds and minimizing the impact on the surrounding
environment. Fourth, by locating on previously converted farm
land, AEI minimizes the impact of the aquaculture facility on the
coastal environment of Carteret County by using land in
agricultural production and avoiding existing wetlands. Finally,
the existence of an extensive drainage system on Smyrna Farms
allows for PAI to use a settling pond and ditch network to remove
suspended solids and to diffuse the waters discharged from its
ponds into the standing waters of this ditch system. In

locating the land for PAI's use, AEI extensively surveyed the
North Carolina coast and determined the Smyrna Farms site to be
the best of all alternatives available.
After you have reviewed the above, please feel free to
contact either Stanley Winborne, Micou Browne, or Greg Montgomery
with any comments you may have or for any clarification you may
need. AEI believes that this project is a vital step towards
placing North Carolina agriculture in the forefront of
aquaculture and furthering the economic vitality of North
Carolina and Carteret County. The support of aquaculture by the
public and private sectors is necessary for this project and
others to succeed. AEI welcomes this opportunity to make you
aware of its plans and role in the aquaculture industry in North
Carolina.
Please keep in mind that AEI would gladly provide future
evaluation and development expertise on a consulting and/or
participating basis for other aquaculture projects. If you know
of other aquaculture enterprises which could benefit from our
services, AEI would be grateful for an introduction.
M E M O R A N D U M
TO: Division of Coastal Management, North Carolina Department
of Natural Resources and Community Development
FROM: Pamlico Aquafarms, Inc.
DATE: February 14, 1990
RE: Water Management Plan for Pamlico Aquafarms, Inc.'s
Facility at Smyrna Farms, Carteret County
The purpose of this memorandum is to provide additional
information on Pamlico Aquafarm, Inc.'s ("Pamlico") intended
water management plan for its proposed aquaculture facility to be
located on Smyrna Farms, Carteret County, North Carolina. This
additional information was requested by the Division of Coastal
Management of the North Carolina Department of Natural Resources
and Community Development and the Division of Environmental
Management at the preapplication consultation conducted on-site
on January 30, 1990.
1. Overview of Water Management.
Good water quality management is a critical factor in the
success of an aquaculture facility. As Pamlico is proposing to
raise hybrid-striped bass in its facility, good water management
practices dictate access to both brackish and fresh water, as
there are certain times of the year when brackish or fresh water
may be more suitable for the propagation and cultivation of this
specie.
Pamlico proposes to use as its source of fresh water the
Castle-Rayne Aquifer which underlies the site, accessing the
aquifer through one six-inch well and four twelve-inch wells over
the four year development period for the project. Pamlico
proposes as its source of brackish water to draw water from a
tributary of Wards Creek through an existing drainage canal which
connects with the existing drainage ditches of Smyrna Farms at
the southern corner of the facility.
By blocking certain parts of the existing ditches on the
farm, and placing drainage control structures in other parts of
the existing ditches on the farm, as depicted on the attached
Revised Site Plan, Pamlico anticipates directing the flow of the
waters discharged from the ponds into a settling pond, then
through approximately three miles of existing ditches to the
headwaters of Williston Creek.
Pamlico's use of both the brackish water and fresh water
will be kept at a mainly is
very expensive to pump
ponds. The reasons for pumping either fresh water from the
aquifer or brackish water from the existing canal are four water;
to practice normal aeration techniques for oxygenating the
to exchange
to replace evaporated water; to flush out the ponds
drained onceime,
approximately 2 to 3 peceach fewhichmwillrbeg the _
as needed; and to refill pond
each year for harvesting and maintenance.
2. Source of Fresh Water.
Pamlico's facility will be located over the Castle-Rayne
Aquifer, which is approximately 200 to 300 feet below the
surface. This aquifer contains excellent water for aquaculture
because of its hardness from high calcium levels and itstloa
levels of chloride. During the first year put in place. One
six-inch well and a twelve-inch well will be each additional
additional twelve-inch well will be put in place facility .
year for the next three years while expanding the
Fresh water from these wells will be mixed with the brackish
waters from the estuarine intake to achieve the desired one to
two parts per thousand salinity for raising the hybrid-striped
bass. An Application for Water Use Permit in a Capacity
has been submitted to The Department of Natural Resources and
Community Development, Ground Water Section, ffor the initil
or a maximum flow
twelve-inch well and six-inch well, allowing
rate from the aquifer of 3,600,000 per day u rin the firsatp ase
of the project. During each subsequent phase will be submitted for the additional wells required as the farm
expands. An application for a permit to construct these wells
will be submitted shortly hereafter to the Department of Natural
Resources and Community Development.
3. Source of Brackish Water.
Brackish water from a tributary of Ward's Creek will be
accessed via an existing drainage canal across Smyrna Farm's
western boundary which connects with the existintuarainawaters
ditches at the southern end of the facility. Esne
from this tributary will be drawn through the acanal long intosa suavest the
located in 2,000 feet of the existing ditches ditches
side of the facility and in 3,000 feet of the existing ditc
tdi sump
along the southwestern side of the facility. Each of with six feet of
ditches will be ten feet wide by ten feet deep,
brackish waters, for a total volume of 300,000 cubic feet or
approximately 2.25 million gallons of brackish water. To provide
access from the tributary °fWard's Creek tandha half feet deep,
existing canal, which is approximately one
will be dug out an additional one anda half feet,depth at which
approximately a depth of three feet, which the Wards Creek tributary
'me&ts the canal at the property line. This existing canal was
dug out at an earlier time, probably during the 1970's, to a
width of ten feet with the spoils being placed on the south side
of the canal. Pamlico intends to place the new spoils from
deepening this canal along the same spoil banks.
Measurements were taken on February 4 and February 11, 1990
of the flow rates of fresh water draining from the existing
ditches of Smyrna Farms into this canal. Based on these two
occasions, Pamlico estimates that between 2,500 to 3,000 gallons
of fresh water flow per minute from the ditches into and through
this canal into the tributary of Ward's Creek. During both these
days of measurement, the water level remained constant at the
headwaters of the ditch as observed through two astronomical
tidal cycles and a high tide created by a northeastern wind, thus
leading to the conclusion that tides do not play a part in the
drainage patterns of the farm.
Once the existing drainage controls and ditch blocks are put
in place to effect the water management plan, Pamlico anticipates
that the flow of fresh water from Smyrna Farms into the existing
canal and the tributary of Ward's Creek will be occluded, such
that brackish waters will be drawn from Wards Creek back through
the tributary and the canal into the sump. The maximum
withdrawal from the sump at any given time will be 8,000 gallons
per minute, which translates to a flow rate in the ten-foot wide
by three-foot deep canal of approximately .59 feet per second.
The flow rate from the canal into the sump will be reduced by
approximately half, as the water volume of the six-foot sump will
be twice that of the canal. Pamlico proposes to put two "V"
screens in the intake canal to avoid entrainment of debris and
organisms from the Wards Creek tributary. A half-inch mesh "V"
screen will be placed above the headwaters of the tributary of
Wards Creek, between the headwaters and the sump. A second
one-quarter inch mesh screen will be placed in the canal just
before entering the sump.
The maximum intake from the sump of 8,000 gallons per minute
is an extreme condition. As Table 1 attached to this memorandum
shows, Pamlico anticipates that the average intake over the
course of a year will be 2,773 gallons per minute, with the
maximum projected during the month of June at 5,076 gallons per
minute. Thus, Pamlico estimates that the normal intake will be
approximately one-third of the maximum flow rate allowed by the
system design.
Pamlico measured the salinity of the water flowing from the
existing ditches into the existing canal and tributary of Wards
Creek on the occasions when it measured the flow rate. This
water had a chloride count of 150 milligrams per liter, for an
effective salinity of zero. Thus, fresh water is currently
flowing from Smyrna Farms through the canal into the Wards Creek
tributary. Pamlico believes that by reducing this outflow of

fresh water, and by drawing brackish water back through the
tributary and canal into the sump, it will benefit the marshes
surrounding the tributary and the canal by increasing the
salinity of the waters in this tributary.
As Table 1 shows, the principal times during which water
will be drawn through the canal into the sump will be from May
through October. The salinity of the tributary where it passes
under East Firetower Road (State Road 1325) (approximately 3,000
feet west of the facility) was measured at five parts per
thousand. Summertime salinities in the creek should be even
higher than in the winter. Thus, as these waters are drawn from
the tributary into the canal, Pamlico expects for the salinity in
the canal and sumps to increase.
As an alternative to deepening the existing canal, Pamlico
is assessing the feasibility of placing a pipeline through the
woods on the facility's western boundary, connecting the
headwaters of Wards Creek tributary directly to the sump and by-
passing the canal.
4. Drainage.
The attached Revised Site Plan and Drainage Plan shows the
flow direction of waters from the ponds and through the existing
and proposed ditches, and where ditches will be blocked and/or
drainage controls will be put in place to direct this flow. The
facility is designed for all waters to flow from the ponds into
various ditches, with all ditches draining into a settling pond
located in the northwest corner of the facility. There, any
solids remaining in the water will settle in the settling pond,
and the waters of the settling pond will exit through a riser at
the surface of the pond out into a ditch along the northwest side
of the facility. The waters will then drain through
approximately three miles of existing ditches to the headwaters
of Williston Creek.
Settling ponds are not a normal practice in pond culture,
although Pamlico is aware of one existing aquaculture facility
that does use a settling pond. Settling ponds are primarily used
in aquaculture facilities which intensively raise fish in
raceways or tanks. The reason that settling ponds are normally
not used in pond aquaculture is that the ponds themselves act as
settling ponds with fish feces falling to the bottom of the pond.
There, the feces decompose through normal aquaculture practices
of total water column aeration and are oxidized. And, as the
ponds are drained on an annual basis, the pond bottoms are dried
out and disced so as to oxidize any of the remaining organic
material. Accordingly, in a pond culture situation such as
Pamlico's, the vast majority of the feces are settled and
decomposed in the rearing ponds, and not flushed out with the
discharged waters. Only a small percentage of the organic
detritus will be flushed out of the rearing ponds and from there
it will move through the ditches and into the settling pond.
Thus, the settling action of the waters in the ditches and in the
. .
settling pond at Pamlico's facility will serve as second and
third guards against the portion of solids or organic material
flushed out of the ponds being discharged into the headwaters of
Williston Creek.
Pamlico is aware that the North Carolina State University
aquaculture lab at the Pamlico Aquaculture Center in Aurora,
North Carolina uses a settling pond. It is Pamlico's
understanding that this facility has been in existence for ten
years and that the settling pond has not been cleaned once during
this time period because of the low organic material being
flushed from the Lab's rearing ponds into the settling pond.
Indeed, Pamlico has been told that the waters of the Pamlico
Aquaculture's settling pond are of sufficient quality that
Pamlico Aquaculture Center holds some its striped bass brooding
stock in the settling pond. Accordingly, Pamlico believes that
the waters flowing from its settling pond into the existing
ditches leading from Williston Creek will contain little organic
matter or suspended solids.
Pamlico is unaware of any data existing as to the biological
oxygen demand of waters being discharged from a settling pond in
a pond culture facility. It is attempting to obtain a copy of a
paper on the biological oxygen demand in catfish rearing ponds
and will provide such paper to the Division of Coastal Management
and Division of Environmental Management should such data be
obtained.
As mentioned above, the settling pond waters will flow from
the surface, through a riser, into existing ditches running along
the northwest boundary of the facility. These ditches in turn
lead to the headwaters of Williston Creek. The length of ditches
between the settling pond and the headwaters at Williston Creek
is approximately three miles. Pamlico believes that this ditch
system will serve to diffuse the waters from the settling pond
and remove any'remaining particulates or organic matter such that
effluent flowing into the headwaters of Williston Creek will
contain only phytoplanktons.
On February 4 and February 11, Pamlico measured the salinity
and flow rate of the waters being discharged from the existing
ditches of Smyrna Farms into Williston Creek. The chloride
levels measured approximately 150 milligrams per liter, which is
essentially a salinity of zero. The flow rate of these fresh
waters on these two dates averaged approximately 3600 gallons per
minute from the ditches into the canal leading to the headwaters
of Williston Creek.
Pamlico's management practices are geared to maintaining a
salinity in its ponds of approximately one to two parts per
thousand so as to achieve the most beneficial growing conditions
for the hybrid-striped bass. Thus, its discharged waters from
the settling ponds will also have a salinity of one to two parts
per thousand.

As Table 1 shows, Pamlico anticipates using an average of
2700 gallons per minute during the year. Thus, Pamlico
anticipates discharging a similar amount on an on-going basis,
although its discharge should be less than its intake during the
summer months due to evaporation. While the discharged waters
will be diffused by the existing fresh waters in the ditches of
Smyrna Farms, Pamlico anticipates that the higher salinity of its
discharge waters may be of benefit to the tributaries of
Williston Creek by increasing the salinities of the waters
flowing from Smyrna Farms into its headwaters.
5. Miscellaneous.
Pamlico does not believe that odors from the pond will be any
concern. In support of this, Pamlico references the NCSU's
Pamlico Aquaculture Center and the numerous catfish farms in the
Mississippi delta region. Odor is nonexistent because, as
mentioned above, the fish feces fall to the bottom of the ponds
and are oxidized through water column aeration. Any odors from
decomposition are absorbed in the water and diffused in
imperceptible concentrations from the surface.
Pamlico further anticipates that there will not be any
problems with mosquito control. Actually, Pamlico anticipates
that the existence of the facility may reduce the mosquito
population for this area of Smyrna Farms. The ponds will be
aerated so that surface waters will be moving constantly. Due to
the flow of waters through the intake tributaries and canal, and
the discharge of waters into the existing ditches, these waters
should be moving as well. Finally, the fish will eat any larvae
in the ponds. Thus, Pamlico anticipates that the mosquito
populations surrounding the facility will decrease rather than
increase.
W5/104:jmr
A. . A
• J TABLE 1
Average Intake/Discharge Rate (Gallons per Minute) per Month
for Pamlico Aquafarms, Inc. Facility in Smyrna Farm, Carteret
County, North Carolina
Average
Intake/Discharge
Month (Gallons per Minute)
1,558
January
1,558
February
March 1,558
April 1,093
2,224
May
5,076
June
July 4,794
4,794
August
September 4,794
October 3,844
November 992
December 992
Average for Year 2,773
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