20070828 Ver 1_More Info Received_20090813

Hidden Lake LLC
4405 Dewees Court
Raleigh, NC 27612
David M. Lekson, P.W.S.
Chief, Washington Regulatory Field Office
US Army Corps of Engineers, Wilmington District
PO BOX 1000
Washington, NC 27889-1000
Dear Dave,
o?-o?za
August 12, 2009
?k. ALE L
00
A JG 1.3 2009
WETLANDS AND STER Ol14LITY
1WATER BRANCH
In response to your letter of June 30, 2009 to Mr. Doug Lashley of GreenVest, Carlyle
Franklin and I are in agreement with your analysis of the Hidden Lake Project Marketing
Profile and we are revising that document to reflect your comments and to remove the
errors that you documented (See attached revised Marketing Profile). Unfortunately, we
did not see the final draft of this document before it was sent out. Otherwise, we would
have seen and corrected those errors.
We are somewhat puzzled by your statement in Item 3, page 1 in your letter where you
mention that: "Restoration work within the Bank has been accepted and monitoring has
been allowed to end. However, credits have not been "fully approved". You then stated
.... "that there are too many loose ends associated with bank acreage and credit
composition to make such a statement". We may have been in error in interpreting that
"fully approved" meant that all monitoring work has been completed and approved, even
though a conservation easement had not yet been placed on the property. If so, you are
correct and we will make that clear in the future. We are fully aware that there are "no
credits" available until the conservation easement is placed on the property and we get
final approval from you and the IRT. .
In Item 1, page 2 you refer to the final survey and the elimination of the RCW
enhancement. After reviewing the MBI, there could be some confusion here buy it is our
belief that the revised and approved MBI on page 6 does indicate all correct acreages,
mitigation activity, wetland type and HGM Type (Item 24), and total credits available
(Item 25). The numbers agree with our updated survey data and the RCW enhancement
acreage was removed.
However, Item 16 (page 4) of the MBI was not altered to reflect the changes in Items 24
and 25. We do not recall if that was by intent or was simply an oversight. Maybe, IRT
meeting notes will answer that question. We do recall in Item 24, that we intentionally
left the RCW enhancement line in the table (Under Natural Community Description -
Line 3 - Mesic pine flatwoods) so there would be no question about how the acreages
were recalculated.
We hope that the items you have pointed out have been adequately addressed. If you see
any other "loose ends", please let us know and we would be glad to address them.
Thanks again for your patience and we WILL be more careful with documents we send
you in the future.
Sincerely,
Doug Frederick, Bank Sponsor

Carlyle Franklin, Bank Sponsor
Enclosure
Copies Furnished:
Ms. Kathy Matthews
United States Environmental Protection Agency
Wetlands Regulatory Section
Mail Code: E143-04
Research Triangle Park, North Carolina 27711
Ms. Becky Fox
United States Environmental Protection Agency
1349 Firefly Road
Whittier, North Carolina 28789
Mr. Ron Sechler
National Marine Fisheries Service
Ilabitat Conservation Division
101 Pivers Island Road
Beaufort, North Carolina 28516
Mr. Howard Hall
United States Fish and Wildlife Service
Ecological Services - Raleigh Field Office
Post Office Box 33726
Raleigh, North Carolina 27636-3726
Mr. Gary Jordan
United States Fish and Wildlife Service
Ecological Services - Raleigh Field Office
Post Office Box 33726
Raleigh, North Carolina 27636-3726
Mr. John Dorney
North Carolina Department of Environment
and Natural Resources
Division of Water Quality
Mail Service Center 1650
Raleigh, North Carolina 27699-1650
Mr. Eric Kulz
North Carolina Department of Environment
and Natural Resources
Division of Water Quality
Mail Service Center 1650
Raleigh, North Carolina 27699-1650
Ms. Tammy Hill
North Carolina Department of Environment
and Natural Resources
Division of Water Quality
Mail Service Center 1650
Raleigh, North Carolina 27699-1650
Ms. Maria Dunn
North Carolina Wildlife Resources Commission
943 Washington Square Mall
Washington, North Carolina 27889
Mr. David Cox
North Carolina Wildlife Resources Commission
1 142 Interstate 85 Service Road
Creedmoor, NC 27522-9159
Mr. Travis Wilson
North Carolina Wildlife Resources Commission
1142 Interstate 85 Service Road
Creedmoor, NC 27522-9159
Mr. Steve Sollod
North Carolina Department of Environment
and Natural Resources
Division of Coastal Management
1638 Mail Service Center
Raleigh, North Carolina 27699-1638
Mr. Doug Lashley
President and CEO
GreenVest
726 Second Street
Suite 3
Annapolis, MD 21403
PROJECT PROFILE
Project Name: Hidden Lake Project (HLP) including the Hidden Wetland Mitigation
Bank (HLWMB - 818-acres) plus an additional 117-acres, proposed for
addition to the HLWMB. Total area of the HLP: 935-acres.
Location: Tyrrell County, NC, approximately 5 miles northeast of Columbia, north
and south of SR 1209 (Soundside Road), (Lat. 35° 54' 33" north and
Long. 76° 14' 48" south). Both tracts are located along the south shore of
Albemarle Sound, with the Sound forming the northern boundary and
Hidden Lake forming the northeastern boundary. The HLP includes the
western half of Hidden Lake and is located in the Alligator Creek 51 and
Scuppernong 53 Sub-Basins.
Service Area: Pasquotank HUC: 03010205, Pasquotank Basin, south of the east/west
centerline of Albemarle Sound. Additional HUC's may be available
subject to approval by the US Army Corps of Engineers
Bank Size: HLWMB - 818 - acres (Tract 1) - 5-year monitoring completed and
approved, plus 117-acres (Tract 2), proposed for addition to the HLWMB
Offering: GreenVest offers the following:
Tract 1:
• 200.9 non-riparian wetland credits - 5-year monitoring completed on
818-acres with sale of credits subject to application of a conservation
easement approved by the US Army Corps of Engineers
48.4 Restoration credits
152.5 Preservation credits
Tract 2:
• 43.2 non-riparian wetland credits, proposed on 117-acres - (Draft
Mitigation Plan submitted to review agencies)
Adjacent Owners:
The HLP is immediately west of the 9500+-acre Palmetto Peartree
Preserve which is owned by The Conservation Fund
Description:
Located in the embayed region of the Albemarle Sound, the HLP is an expanse of nearly flat
land along the southern shore of Albemarle Sound. The site is vegetated with Non-riparian
Swamp Forest dominated by a mixture of swamp black gum, red maple, cypress, juniper and
loblolly pine. The forest is mature and in good condition. Higher elevation areas of mineral
soil support fine examples of the rare, Non-riparian Wet Hardwood Forest community type.
Most of these forests have a successional composition, with canopies dominated by loblolly
pine, but some contain mature oaks. The rest have well-developed understories of the
characteristic oak species, including swamp chestnut oak, laurel oak, and cherrybark oak.
Several ridges within the tract support small patches of Mesic Mixed Hardwood Forest. The
area along the Albemarle Sound supports Tidal Cypress - Gum Swamp of stunted cypress,
swamp black gum, red maple and sweetgum. Hidden Lake itself is an unusual water body, a
tidally influenced small black water lake on a creek connected to the sound.
Two agricultural fields totaling 48 acres, which were previously farmed, have had wetland
hydrology restored and been planted with native wetland trees, restoring wetland vegetation.
Management and Protection:
The primary goal of this project was to restore, enhance and preserve forested wetlands,
water quality, fisheries, wildlife habitat and vegetation and in so doing, provide wetland
mitigation credits for offsetting unavoidable wet flat (WF), and non-riparian swamp (NRS)
wetland losses associated with projects requiring Clean Water Act, Section 404 Dredge and
Fill permits within the Pasquotank River Basin. The Mitigation Plan involved restoration and
monitoring of Tract l made up of 48.4 +/- acres of WF and NRS wetlands on prior converted
agricultural fields, preservation of approximately 766.6 acres of existing WF and NRS, and
small depression pond wetlands for a total of 200.9 non-riparian wetland credits. Tract 2,
pending approval of the Draft Mitigation Plan would add 18 acres of restoration and 84 acres
of enhancement and preservation for a total of 43 non-riparian wetland credits.
The Pasquotank Basinwide Plan (PBP) states that undisturbed forested areas are an ideal land
cover for water quality protection. This region contains some of the most pristine and
ecologically valuable undisturbed forested wetland habitats in eastern North Carolina. The
PBP states that protection of the non-riparian Wet Hardwood Forest and Atlantic White
Cedar communities is particularly urgent since these communities are threatened and very
few examples are currently protected in the region. The HLP has exceptional examples of
the Non-riparian Wet Hardwood Forest community type. The North Carolina Natural
Heritage Program has documented the Non-riparian Wet Hardwood Forest Community Type
within the HLP and stated the occurrence as having Statewide Ecological Significance. The
North Carolina Council of State has accepted the site to be designated as a State Nature
Preserve.
The HLP is in the forested headwaters of the upper Scuppernong River and Alligator River
Sub Basins. These drainages support anadromous fish spawning and nursery areas.
According to the PBP, the pollution potential from forestland ranges from moderate to very
low. The Scuppernong River is considered partially supporting (PS) in its uses (an indication
of impairment). It is a priority water body for nonpoint sources that include agriculture and
animal operations. Mercury and dioxin contamination are present in the Scuppernong Basin
and limits on eating fish are recommended. Water quality is recognized as critical to fishery
resources. Preservation, and when possible, restoration of the hydrology of forested wetlands
with organic soils is an effective method of controlling mercury accumulation in fish. The
HLP site supports primarily organic soils.
The Alligator River Sub Basin contains the only Outstanding Resource Water (ORW) in the
Pasquotank Basin. Sampling indicates that finfish and shellfish have no significant organic
or elemental contamination. Restoring and protecting the HLP has contributed to
maintaining this condition. According to the North Carolina Division of Coastal
Management, the undisturbed forested wetlands on the HLP site are identified as being of
exceptional functional significance. This designation means that the wetlands are in a
pristine state, contribute greatly to local and regional water quality through filtering
mechanisms, provide optimal ecological functions such as storing flood waters and have
significant habitat values in the Alligator River Basin. The restoration of the hydrology of
this tract and protection of the existing undisturbed wetlands helps eliminate continued
sedimentation and turbidity, significantly improving the anadromous fish spawning and
nursery areas within Albemarle Sound.
A significant ecological feature within the HLP is Hidden Lake, a natural freshwater lake
totaling 8+/- acres, of which 4+/- acres is within the HLP. The other 4 acres are part of the
Conservation Fund's Palmetto Peartree Preserve. Hidden Lake is connected to Albemarle
Sound by a narrow natural slough that is the northern terminus of a sub-watershed of about
4,000 acres to the south. Almost 2,000 acres contribute water to two canals on the western
side of the site. Therefore, the restoration and preservation of the HLP site enhances water
quality from an area over six times larger than the Project area.
Significance of the Site:
From an ecosystem service perspective, the HLP site receives drainage from more than 4,000
acres of land currently used for intensive agricultural and timber production. The Project
contributes significantly to maintaining water quality in Albemarle Sound and specifically to
Outstanding Resource Waters of statewide significance. The HLP comprises the western
portion of a larger Significant Natural Heritage Area known as Lewis Point Swamp Forest.
As a whole, Lewis Point Swamp Forest is also of statewide ecological significance for its
large expanse of various wetland communities and large population of red-cockaded
woodpeckers (RCW). Although the HLP is not known to directly support red cockaded
woodpeckers, it is an important part of potential RCW foraging habitat for woodpeckers from
the Palmetto Pear Tree Preserve and it contributes to a large expanse of intact wetlands. The
HLP contains Non-riparian Wet Hardwood Forest communities that are not known to occur
on other parts of the Lewis Point Swamp Forest. The HLP has earned a title of State
Dedicated Nature Preserve by the National Heritage Program, due to a combination of it's
inherent ecosystem service capability as well as its adjacency to the Lewis Point Swamp
Forest. Because of its large size, habitat heterogeneity, connection to other expanses of
natural lands, and proximity to protected areas (Bull Neck Swamp Dedicated Nature Preserve
to the west and Alligator River National Wildlife Refuge to the East), the HLP is also well-
situated to provide habitat for animal species, especially those that are wide-ranging or
disturbance-sensitive.
Contact: Doug Lashley [phone] doureenvestus.com
Doug Frederick [phone] dfrederickna greenvestus.com