20041092 Ver 1_Complete File_20041021

Determining Appropriate Compensatory Mitigation Credit for
Dam Removal Projects
Developed cooperatively by US Army Corps of Engineers
(COE), Wilmington District, US Fish and Wildlife Service
(Service), US Environmental Protection Agency (EPA), Region
IV, NC Division of Water Quality (DWQ), and NC Wildlife
Resources Commission (WRC)
Version-4.0
March 22, 2004
Although dam removal projects would be expected to
result in the restoration of natural stream systems that
had been previously impacted, there is no established
procedure to identify when and how dam removal can be
utilized as compensatory mitigation for loss of streams and
stream functions due to permitted development projects.
The following guidance has been prepared to address these
issues and is intended to provide th.e.regulated community
of North Carolina with joint and cong?stent District and
DWQ Guidance.
The intent of this guidance is to\Provide a consistent
method to determine mitigation credit derived from
appropriate dam removal projects across the state.
This guidance is intended to apply to the removal of
larger dams. Removal of smaller dams (generally involving
impoundments of 10 acres of surface area or less) may
I provide project specific compensatory mitigation
opportunities, utilizing channel restoration that follows
the typical natural channel design methods. The DWQ will
use this guidance as a working policy. The Wilmington.
District also intends to use this guidance, but will do so
only after the Corps follows its normal public interest
review process, which provides for opportunity for public
notice and comment. These guidelines should not be
construed as affecting the applicability of the Clean Water
Act (CWA) 404 (b)(1) Guidelines, found at 40. CFR Part 230,
the Memorandum of Agreement between the Environmental
Protection Agency and the Department of the Army (DA)
concerning the Determination of Mitigation Under the Clean
Water Act Section 404(b)(1) Guidelines, or the review
process outlined in DWQ's rules (15A NCAC 2H.0506).
Although the agencies believe that there is benefit in
dam removal projects, use of dam removal projects as
compensatory mitigation should be used cautisly and on a
basis until a better understandingofuthe benefits
and consequences of dam removal projects is
anticipated that this guidance will be sub'ectltoned. It is
review and revision based on the review and monitop ngoofc
,these projects. This guidance relates to dam removal
projects only and is not intended to address other types of
potential compensatory stream mitigation projects.
Debit/Credit Process
All considerations for compensatory mitigation credit
for dam removal should be evaluated through the mitigation
bank process involving a mitigation Bank Review Team (MBRT)
and subsequent execution of a Mitigation Banking Instrument
(MBI). For proposals by the Ecosystem Enhancement Program
(EEP), evaluation will be done b
Assessment and Consistent by the EEP Program
the EEP Memorandum of Agreementp MOACG) in accordance with
all ( )•\ It is expected that
proposals will be adequately descr ed in a
document that is subject to review and. Planning
'proval by the
appropriate agencies. Once it has been \'etermined that a
project may proceed under these guidelin'`
permit requirements for removal of the dam,andeanylc DA
associated structures will be-determined by the U.S. Army
Corps of Engineers.
1. General criteria that will be considered when
determining mitigation credit.
A. Water quality issues: Documented impairments to
water quality in the impoundment that would be
alleviated by removal of the dam. These include
low dissolved oxygen levels, elevated
temperatures (especially for trout or cool water
ecosystems), elevated chlorophyll a, nutrient or
toxicant levels or downstream flow interruptions
Other considerations include listing of the
waterbody on the state's 303(d) list, or known,
repeated violations of water quality standards,
or High Quality Water (HQW) or Outstanding
Resource Water (ORW) classification above or
below the dam.
B. Rare, endangered and threatened aquatic
species: State or Federally listed rare,
endangered or threatened aquatic species that are
2
r
likely to colonize the restored stream reach.
Long-term monitoring (beyond 5 years) may be
needed in order to demonstrate that this
criterion has-been met. If monitoring fails to
demonstrate suitable habitat improvements or the
presence of appropriate species, as described in
the approved mitigation plan, then credit amount
and/or release of future credits may be adjusted.
In some instances, reintroduction of species by
the appropriate agencies may be done in
conjunction with the project.
C. Establishment of an appropriate aquatic
community: Removal of the dam may result in the
restoration of the appropriate aquatic community.
Success criteria for this category may be based
upon a demonstrated improvement of water quality
from "good" to "Very Good" within the monitoring
period. Use of DWQ's Benth?c Macroinvertebrate
stream rating system or sim?\lar metrics may be
used to measure this criterion. Finally,
restoration of non-anadromou?\\fish use (such as
Darters) may also receive mitigation credit on a
case-by-case basis. The credit would be based
upon documentation of restoration of the
fragmented aquatic habitat.
D. Anadromous fish passage: Documented re-
establishment of anadromous fish use of streams
upstream of the removed dam. If monitoring fails
to demonstrate the presence of anadromous
species, as described in the approved.mitigation
plan, then credit amount and/or release of future
credits may be adjusted accordingly. In some,
but not all cases, the applicant may be credited
at a ratio of 5:1 for this criterion. However,
the final decision will be determined as outlined
in the Debit/Credit Process.
When reviewing projects pertaining to'either
endangered/threatened species and/or anadromous
fish criteria, the MBRT and/or PACG will solicit
the expertise of the appropriate Federal agency
(USFWS) and/or the National Marine Fisheries
Service (NMFS) for federally listed species and
the NCWRC and/or the North Carolina Division of
Marine Fisheries .((NCDMF) for state listed species
3
to determine the viability of the restn
endangered or threatened species and/or rtheir of
habitat or anadromous fish of the project
will provide feedback with regard to the and
monitoring and the success criteria established
by the project proponent.
I2. Additional site-specific factors that ma
considered during the review of dam re Y be
mitigation credits n?oval projects for
A. Wooded buffers: Although wooded buffers
critical for temperature control a are less
chain support and , quatic food
rivers, physical stability on larger
this guidance recognizes the benefits
that wooded buffers provide and encourages their
establishment, where possible.
mitigation credits will be More favorable
protected, wooded buffers supported where fully
protected) are established (onaboth sideshof the
waterbody. Buffers of at 1'
in the mountains
eest 50 feet (30 feet
) are
benefits while buffersnu eded?for water quality
p to ?00 feet wide are
often cited as valuable for wildlife habitat and
corridors or where threatened or endangered
species are present.
buffers will be treatedhaspaosi S1On of wooded
for the amount of credit availableffromtthecsiote
as described in Table 1.
B. Human values: If the
provide direct human benproject is efits includingged to
recreational benefits (such as
marked canoe trails parks, trails,
environmental education) tOrescientifidcsreear sear for
ch
conducted beyond the required monitoring of
project, then additional credit may be gene e the
as follows: grated
An additional 20% bonus
10? for each cate or (with no more than
maximum credit g y and up to no more than the
) could be available.
encouThe Purpose
emof this provision is to dam additional benefitsatoap
the public plicants to provide these
removal. These activities offered by the dam
y the
4

applicant may offset any negative local
perception associated with the public
dam's re
any. The provision of new recrea
tionalmoval, if
opportunities may also help
existing recreational uses such sas traditio changenalin
hunting or boating.
C. Calculation of compensatory mitigation for dam
removal.
1. Selection of projects:
projects will be suitable for Ncmpensatoryemoval
mitigation. If the dam removal does not
meet
of the four general criteria listed above. any
water quality issues in the lake (e.g.,
threatened endangered and
aquatic species, reestablishment of
improved aquatic life and/or anadromous fish
passage), then it is unlikel
Y that the Federal
and State agencies
dam as compensator will support removal of the
compensatory mitigation,
2. Maximum Potential Credit:
With the exception of III,
potential credit below, the maximum
(in linear feet) that may be
generated by a single project will be the length
of stream restored to flowing condition measured
from the dam to the upstream edge of the normal
pool as indicated by the elevation of the crest
of the dam for run-of-river dams or the outfall,
whichever is lower in elevation. Restoration of
flow in any perennial tributaries to the
impoundment may also be counted.
intermittent streams that would noA1 nger be
flooded may be credited at one-half of their
length. Alternatively, a functional habitat-based
calculation may be used on a case-by-case basis
when the either the MBRT or the PACG agree that
such a calculation is a
agencies a ppropriate. Regulatory
gree that such a calculation is
appropriate.
3. Credit for demonstrated downstream benefits:
A length of river immediately downstream of the
dam may exhibit aquatic life and stream bank
stability benefits due to the restoration of
natural flows. Credit ma
reach on a case y be available for this
-by-case basis based on monitoring
5
F'?_, -_-
and evaluation by the appropriate agency review.
The pool removal credit and the downstream
benefit credit combine to establish the maximum
potential credit. The amount of available credit
associated from removal of the impoundment and
the downstream benefit credit will be determined
by either the MBRT or the PACG.
4. Baseline Mitigation Credit calculations:
To establish the baseline mitigation credit, the
maximum potential credit (as calculated above)
will be adjusted based on the number of general
criteria met and the length and width of any
buffer that is protected (via conservation
easement, etc.) adjacent to the restored stream.
If one criterion is met, 50% of the maximum
credit will be available. In the event that 2 or
3 of the criteria are met, then the maximum
credit will be 70%. Should X411 4 criteria be
present, then 100% of the ma 4mum credit will be
available. Furthermore, additional credit beyond
100% for buffer establishment 4nd/or preservation
will be determined on a case-by;-case basis.
Table 1. Adjustment of Baseline Mitigation Credit based

the extent of protected on
buffers
Percent of Average Width Divide
Corridor

.Protected baseline

100 to 75%
50 to 150 feet credit by
0.75
150 to 300 feet 0.70
74 to 50% 50 to 150 feet 0.85
150 to 300 feet 0.80
49 to 25% 50 to 150 feet 0.95
150 to 300 feet 0.90
24 to 0% 50 to 150 feet 1.0

50 to 300 feet
1 A minimum width of 30 feet 1 a
n be substituted
10
for. th

threshold for projects in
2
the mountains e
50-foot
Note that to facilitate
the pre-project perimeter .
calculation of buffer
f credits, the extent of

the buffer. o
the impoundment is equivalent to 100% of
6

Only in exceptional cases, where
documentation 'exists, will the baseline credit be
increased to an amount that exceeds the maximum
credit as above referenced Section C II.
It is.acknowledged that it may be difficult to
obtain easements (or other protective mechanisms)
from all landowners along a channel. In
addition, the acquisition and legal protection of
buffers may take several years. Project sponsors
are encouraged to propose what is likely to be
obtained when the plan is submitted for review.
Additional credit would be made available during
the monitoring period as additional buffer is
protected.
If these categories of buffer protection are not
available, adjustments may be made on a case-by-
case basis. These adjustments could be modified
if the protection efforts tat. et areas with
special ecological functions nd/or values that
are identified by conservation\groups such as the
NC Natural Heritage Program. Areas that are
already protected by conservation easements or
public purchase can be utilized toward the
protected buffer percentages. Additional credit
may be provided on a case-by-case basis, if it is
determined that the buffers need to be planted.
Similarly, in river basins where DWQ administers
riparian buffer protection rules that protect the
wooded buffer, these credit multipliers would
likely be recalculated on a buffer width after
subtracting the area of the protected buffer.
5• Case-by-case process for unique situations:
The agencies acknowledge that there may be
unusual and unique dam removal scenarios (such as
provision of a buffer substantially larger than
suggested herein or removal of an urban dam with
on-site, watershed based stormwater management),
which will require additional flexibility and
extensive inter-agency coordination. In these
cases, a special Mitigation Banking Review Team
may need to be established to address these
scenarios.
7

D. Other factors to consider on a case-by-case basis
in the Debit/Credit Process:
1. Wetlands:' Removal of some dams will result
in a net gain of wetland acreage while others
will result in a net decrease in wetland acreage.
A careful evaluation of the effect that the
removal of a dam would have on wetlands should be
made. This would involve considering wetland
functions, values, and eco-region context, as
well as possible restoration of these functions
prior to dam removal. Protection of any drained
wetland areas through conservation easements
would be helpful. Any net increase of wetland
acreage may be counted as wetland mitigation
credit while any net decrease could result in the
need for compensatory mitigation to offset those
impacts.
2. Sediment: The dam shou?d be removed
gradually to lessen the downs ream impact of any
accumulated sediment on downst eam biota.
Preferably the site should be ewatered and the
dam gradually notched over a large portion of the
monitoring period. Other methods of gradually
lowering the water level will also be considered.
Fish and other aquatic moratoria may provide
useful guidance for the timing of dam removal.
Monitoring of sediment stability in newly exposed
stream banks will be necessary to determine if
temporary planting will be needed to control
erosion. If the sediments are believed to
contain toxicants such as heavy metals and toxic
organic chemicals, then testing will be needed
prior to removal of the dam. If levels of
.toxicants are problematic, then management of
these sediments (including removal and
appropriate disposal) will be needed before dam
removal: However, if it is determined that,the
release of those toxicants would be detrimental
to the aquatic environment, the MBRT or PACG may
exclude the project from further consideration.
3. Monitoring: The purpose of monitoring is to
document the projected benefits of the dam
removal, identify any problems encountered and
propose.solutions, as well as, justify the amount
8

of credit
d
h
an
t
e credit release schedule for the
project. Monitoring of the biological, chemical

r and physical effects of dam removal will be
required before, during, and after dam removal.
Annual reports to the relevant agencies are also
required. Action plans should then be
developed, approved by the permitting agencies
and implemented to address any, problems found
during the monitoring.period. Monitoring should
be done for five (5) years after the initiation
of dam removal with one year of pre-dam removal
monitoring to document baseline conditions
.
Monitoring should consider fish and macrobenthos
monitoring, limited water chemistry monitoring
,
as well as stream bank stability and
reestablishment of a stable channel within the
now-drained impoundment. Finally, the monitoring
plan must document how the project has resulted
in an improvement to any og the criteria upon
which the project
s
wa
based; Existing data may
be useful in this regard. monitoring doe
't
sn
support the expected credits1 ased on the
criteria listed above, then the number of credits
should be adjusted, as appropriate.
4. Remedial action: If problems are identified
before, during or after dam removal, a remedial
action plan must be developed which adequately
addresses these issues. For instance, if the
newly exposed stream banks are experiencing
erosion, then a temporary seeding of a non-
invasive annual plant may be needed until the
native vegetation can stabilize these sites.
Similarly, if downcutting occurs in the
tributaries to the dam, measures to stabilize
these streams may be necessary. Monitoring
programs must be designed to identify these (and
.other) potential problems so they can be
addressed adequately. If active measures are
needed, then the use of natural channel design is
recommended.
5. Long-term protection of the dam site: The
dam site will need to be protected with a
conservation easement to ensure that construction
of a new dam will not occur. The extent of long-
term protection of the remainder of the restored
9
stream corridor will determine, in mitigation credits ? part, the
as outlined in the buffer
protection portions of this guidance.
6. Rare, threatened and endangered species:
Dam removal in habitat Dam re l known to support state or
Federaly listed rare, threatened or endan
species must be coordinated gered
state and Federal agencies with the appropriate
upstream and downst'eamhabitat nis not had
affected. adversely
7• Exotic species;
The
be thoroughly surveyed touensuremthatlex t should
oti
flora and fauna are not released downstreamcand
that exotic fauna do not invade the area of the
drained impoundment.
8-Downs tream flow alteratiora.:
removal of a dam, pos Following the
e d6
alterations should besexami
ne4-wnsPostream flow
alterations could include chasible
regulated floodplain in the
downstream channel morphology a,s in the
implications for wastewater d chargersflow
.
9. Existing phYsical constraints.
features such as roads Existing
utilities or parallel to the channel
structures need to be considered
with respect to the
that can be restoredpractical amount of buffer
these features protected. If some of
cannot be moved, then the maximum
of possible buffer credit should be adjusted
accordingly.
10. Downstream flooding: is likely that dam removal wIn most stuati,
ill have1a neglis it
effect on downstream flooding- gible
factor is of concern to the However, if this
agencies, then a modelin public or the
evaluate this factor, g effort may be needed to
11. Water SupplY protection.
that dams will be approved It is unlikely
that dams pproved for removal as.
compensatory mitigation if they.are being
actively used as water supplies
project proponents should check .then any event,
J, .
10
sr ysificatian of the water to be certain that it
:?,., sus not being ..used as a water supply.
' te'lease Schedule:
dam removal projects when credit release schedules
are,appropriate (i.e., mitigation banks), the agencies
propose to follow the recently agreed upon, joint
federal and state credit release schedule for stream
mitigation as outlined below. This schedule has been
modified slightly to reflect the definitional
differences between more typical stream mitigation and
dam removal since some provisions for stream
mitigation do not apply to dam removal projects.
Initial crediting: 15%
Execution of MBI (where appropriate)
Approval of final mitigation plan
Delivery of financial assurances
Recordation of preservation mechanism
Construction release (initiation of gradual
dewatering of the lake): 1Q%
Upon initiation of initial physical and
biological monitoring J,25-% cumulative)
After year 1: 10% if a bankfull event has not
occurred; 20% if bankful;l event has
occurred, if channel is stable and other
success criteria (if any) are met
(cumulative 35% and 45%). This assumes that
the project is satisfying the criteria upon
which it was based.
After year 2: 10% if first bankfull event
occurred in previous year or a bankfull
event does not occur in this year; 20% if
I bankfull event has occurred and if the
restored stream channel is stable and other
success criteria (if any) are met
(cumulative 45% and 55%). This assumes that
the project continues to satisfy.the
criteria upon which it was based.
After year 3: 10% or 20% (same as year 2)
(cumulative 55% to 65%). This assumes that
the project continues to satisfy the
criteria upon which it was based.
After year 4: 10% or 20% (same as year 2 and
year 3), (cumulative 65% to 75%). This
assumes that the project continues to
satisfy the criteria upon which it was
based.
11

After year 5: 25% if at least one bankfull event
has occurred in the previous year(s). 35%
if the first bankfull event occurs in year 5
and the agencies make a determination of
success as defined in the mitigation plan.
This assumes that the project continues to
satisfy the criteria upon which it was
based.
The above release schedule is to be utilized as a
guideline, but can be modified by either the MBRT'in the
event that monitoring reveals that identified success
criteria are being met prior to the outlined release
schedule.

12
Piramide del (Sol
Cerro sagrado que simboliza el centro del
universo.
Esta hecha con bloques de tepetate rellenos de
tierra y adobe y recubiertos con tezontle; tiene 5
cuerpos sobre una base cuadrangular que mice
225 mts. par lado y una altura de 66 mts.
Fue edifcada en 2 etapas entre 0 y 200 D.C. y
posteriormente la piramide localizada al frente de
la escalera. Un allazgo importante fue el
descubierto en los anos 70's, una cueba natural
de 102 mts. de largo donde encontraron
interesantes vestigios.
PN'ramid of the 'Sun
Sacred hill which symbolizes the center of the
universe.
Its made out of rock blocks fillied with dirt and
adobe, and covered with volcanic rock; its formed of
5 levels based on square figure of 225 meters, and o
66 meters height.
It was built in 2 stages between 0 and 200 A.C., and
later on, the pyramid was placed facing the ladder
In the 70's, an important discovery was madeo
natural cave of 720 meters long where
several intersting objects were found.
f WETLANDS / 401 GROUP
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RE: Deep River MBRT comments & next meeting
Subject: RE: Deep River MBRT comments & next meeting
From: "Tugwell, Todd J SAW" <[e-mail]>
Date: Thu, 21 Oct 2004 15:38:40 -0500
To: "'George Howard (E-mail)"' <[e-mail]>, "'Bob Zarzecki (E-mail)"'
<[e-mail]>, "'Mike Wicker (E-mail)"' <[e-mail]>, "'Becky Fox
(E-mail)"' <[e-mail]>, "'Shari Bryant (E-mail)"' <[e-mail]>,
"'Dolores Hall (E-mail)"' <[e-mail]>
CC: "'John Dorney (E-mail)"' <[e-mail]>, "Manuele, Jean B SAW"
<[e-mail]>, "Thomas, John T JR SAW"
<[e-mail]>, "Franklin, David SAW"
<[e-mail]. anny.mil>
This email is just a reminder that we have a Deep River MBRT meeting scheduled for Wed., Oct.
27th here at the Raleigh Field Office (6508 Falls of the Neuse Road, Suite 120). The meeting is
set for 10 AM. I had hoped to get comments on the prospectus together before the meeting, so if
you have not provided comments but still plan on doing so, please fax a copy directly to George
(919-755-9492). Thanks.
Also, for any team member who thinks they won't be able to make the meeting, or needs directions,
please let me know.
Thanks,
Todd J. Tugwell
Regulatory Project Manager
Raleigh Regulatory Field Office
U.S. Army Corps of Engineers
6508 Falls of the Neuse Road, Suite 120
Raleigh, NC 27615
work: [phone] ext 26
fax: [phone]
www.saw.usace.army.miI/wetlands/index.htmI
-----Original Message-----
From: Tugwell, Todd J SAW
Sent: Tuesday, September 07, 2004 3:03 PM
To: 'George Howard (E-mail)'; 'Bob Zarzecki (E-mail)'; 'Mike Wicker (E-mail)'; 'Becky Fox (E-mail); 'Shari Bryant
(E-mail)'; 'Dolores Hall (E-mail)'
Cc: 'John Dorney (E-mail)'; Manuele, Jean B SAW; Thomas, John T JR SAW
Subject: RE: Deep River MBRT comments & next meeting
All,
I have only heard from a few members, but wanted to go ahead and set a preliminary date for
the next meeting. Unless someone has an objection, I suggest we meet here in the Raleigh
1 of 2 10/27/2004 9:01 AM
RE: Deep River MBRT comments & next meeting
Field Office on Wednesday, October 27th, at 10 AM. I will reserve our conference room for
the day. Please respond to let me know if you will be able to attend, or if there is a conflict
with either the time or date. Otherwise I will try to send out a reminder email a couple days
prior to the 27th.
Thanks,
Todd J. Tugwell
Regulatory Project Manager
Raleigh Regulatory Field Office
U.S. Army Corps of Engineers
6508 Falls of the Neuse Road, Suite 120
Raleigh, NC 27615
work: [phone] ext 26
fax: [phone]
www.saw.usace.army.miI/wetlands/index.htmI
6508 Falls of the Neuse Road, Suite 120
Raleigh, NC 27615
work: [phone] ext 26
fax: [phone]
www.saw.usace.army.miI/wetlands/index.htmI
2 of 2 10/27/2004 9:01 AM
Lowell Mill Dam
Neuse River Basin Cataloging Unit #03020201 Johnston County
• Restore 34,990 ft of stream (Little River/Buffalo Creek)
• Restore Anadromous fish passage
? 82 square mile watershed
? 497,400 ft of 1St order streams
? 228,840 ft of 2"d order streams
• Restore rare and endangered species habitat (11 species-includes dwarf wedge
mussel and Tar River spinymussel)
• Improve water quality and aquatic communities in 303(d) stream
• Generate new academic data from monitoring removal of dam and effects
Dam-210 ft wide/9 ft high; constructed in 1904
McDonald's Pond
Yadkin River Basin Cataloging Unit #03040201 Richmond County
• 8884 linear ft of stream (Falling Creek) - generating 4364 credits
• Water quality-Falling Creek flows into Hitchcock Creek (303(d))
• Rare, threatened, endangered species-Carolina Heelsplitter, Carolina Darter,
Piedmont Darter
• Improved aquatic community-from lentic to lotic eccosystem, Anadromous fish
passage
? 3.1 square mile watershed
? Water supply watershed (City of Rockingham)
? 13.3 miles of stream in watershed
• Riparian buffers-200 foot wooded-buffers will surround entire site (122 acres of
stream, wetlands and buffer)
Dam-70+ years old, pond is 17.6 acres
Oct 25 04 12:35p Restoration Systems 9197559492 p.1
f '
RESTORATION SYSTEMS, LLC
Natural Resources Restoration & Conservation
I'6
FAX
1 l01 Haynes Street
Suite 107
Raleigh, NC 27604
919-755-9490
Fax [phone]
www.restofationl,ystcms.com
To: John Dome
From: George Howard
Date: October 25, 2004
_Fax Number: 919-733-6893
No. of Pages + Cover: 5
Message:
OCT-25-2004 MON 10:32 TEL:[phone] NAME:DWO-WETLANDS
P. 1

Oct 25 04 12:35p Restoration Systems
V v s L+ L v V 1 • V S 4 ? "?-"
9197559492
?iJJL:I r.VVL/VV_
p.2
North Carolina Wildlife Resources Commission 0
Chacks R Fullwvod, FxecutiveDurcror
MEMORANDUM
TO: Todd Tugwell, Raleigh Regulatory Field Office
U.S.Army Corps of Engineers
FROM: Shari I.. Bryant, P dmont Region Coordinator
Habitat Conservation Program
DAVE: 30 September 2004
SUBJECT: Prospectus for Carbonton Darn Retnoval-Deep River, Chatham. Lee and Moore
Counties, North CaroliruL NCWRC No. P.04.07.19.02.
Biologists with the North Carolina Wildlife Resources Ctm missiota (NCWRC)have reviewed the
subiect document. Our comments are provided in accordanoe with the Fish and Wildlife Coordination
Act (48 Stat. 401, as amended: 16 U.S.C. 661-66'r d), and North Carolina General Statutes (G-S. 113-131
t:t scq.).
Rostontion Systerns, LLC is proposing to establish a mitigation bands by r=oving Carbonton
Dam on Deep River. According to the proapecws. the proposed project will realm 124,282 fincar fret of
the Deep River and several of its tributaries to free-flowing stream. The applicant anticipates that the
project will generate between 90,494 and 116,350 linear feet of stream mitigation credit.
Carbonton Dam is located on Deep River in Chatham, Lee and Moore Counties. These are
records for tho fedeml and stale endangered Cape Fcar sh incr (Notropis mekis(ocbolas); the federal
species of concern and state endangered Atlantic pigtoe (Fusconaio stiasonl)? the federal species of
oommn and state significantly rare Carolina redhersc (Afowstoma sp.r the state titreateined creeper
(Strerphitus undidotus) and triangle floater (Afasmidcwta undulate); and rho static special eoncem crotched
rainbow (Vi/lose conwicia) in Deep River. Additionally, the impounded reach of Deep River edpports a
recreativnal fishery. Although no format surveys have been conducted within the impostnded reach, it is
likely that sunfish (Lepomis sp.), largemouth bass (Aficropterkas salmoides), and catfish (Icfalrow sp.),
including the introduced flathead catfish (Pylodiclso o1tvarfsI are the species mm likely sought after by
anglers.
While we agree that removal of Carbonton dam provides benefits. particularly for tare and
sensitive species such as mussels and Cape Fear shiner. the impounded section behind the dam currently
provides recreational fishing opportunities for local residents. This recreational fishery will likely be lost
or diminished when the den is removed The NCWRC boating access area located first upstream of the
darn off of NC42 also will likely bocome unusable. The NCWRC has ban aonU clad by anglers who are
concerned about removal of the darn and iu impact on recreational fishing. Since there is the potential to
significantly impact recreational fishing after the dam is removed, we ask that the following information
be included in the mitigation plan.
MailingAddrese: Di%ision of Inland Fisheries • 1721 Mail Scr%ice Cantcr • R4lcigh,NC276"4721
Telephone: (9;?) 733-3633 ext. 281 • Fax: [phone]
0-01 1Is*-661•-See sueR,ag -,'S dLZ%60 $.0 0C daS
OCT-25-2004 MON 10:32 TEL:[phone] NAME:DWQ-WETLANDS P. 2
Oct 25 04 12:36p Restoration Systems 9197559492
....1 L t C QQ4 ? l -" - „' .. . _. _ K^L 1Lv $>>L'J e. VVJ1 VV J
Page 2
30 Saptmbcr 2004
Prospectus - Carbooton Dun Rcmonl
Maps or t&gittea that delineate roarer depm aM aubft= type floras the etdfmg dam o0 oune mule
1> 1Lti of ilia NCWRC boaomg aoccss uea ahwihe dam is =wvcd. Should watu depth or
sabsaatc not be conducive to boating widtim the mach new the boating amss area, we ask *a
detailed n d6ptim measures be provided for iepining augter aocen at rho existkig access area
or at other sift within the project boundaries.
N.C. State University and NCWRC have rec cudy initiated a oolb borative study on Awt mad
cdsh withm this mcdoa of the Deep River. We we Banc emed about the efficcts of tray ptt-dam removal
i mserves that would involve altering stt±eam flaw or itapoumdmeat depth. Sudden d ways in str?cun
flaw or i mpauticirneut &T& may adversely affect the research pmjeet. We ask t m Udosatsaa Systems,
LIaC ooatact Dr. ran Kwak (N.C. Stage Uaivenzity) at (9I9) 513-2646 Or ( d?ncsmadu mid Shan
McRw (NCWRC) at (414) 732--9429 or mcraebi&earihtink.ncI prior to trey activities that would after
I F i flow betaw the dam or rmduee impawidmcut depth.
Carboaton Dram is a liocasod Federal E=W Regak*xy Commission (FERC) hydroelectric
fircaity (Project No. 3155 It is our u nderst mdins drat the mmoval of t$is dace nxpmir s FM approvA
which mcludcs NEPA analyses„ public not wc, etc. and this ptx=u could take 6 months to several yam to
oomplete. Rest oratiaa system; LLC should coulact FMC. if they have not already done so, to
what vmM we t o%W to mccive HRC approval to remove the dint.
In additioa w tote concerns oudmed above, we have the following specific comments related io
infoamation in tint prospoc im
Page 1, Section 1.1- Project Descriptive:
2.
3-
4.
e - d
It was stated dud the Mitigation Service Area includes all ofHU 03030003 and 03030002. The
mitigation bank is located in HU 03030003 and should service this hydrologic unit aRY) 004. in
the event that a project occurs in mod= HU, every effort should be trade to locate skram
mitt ativn in that area. If rheum mitigation is not available; the Carboatcm Dam mitigation site
can be avuasaed to determine ks use as mitigation outside of the impacted HU.
Page S, Sect Eon 2.3 - Summary of Potential Impacts to Water Rewunvos
This section should include impacts associated with the xekase of atva4ive flora and fauna from
the impounded wstas, and should addom. treasures to redu0e this risk. Mcasu?a should izmiu&
exttwive surveys and mtnovaL
Page 7. Section 5.0 - Dam Removal Activities
'Me mitiption plan Owuld document the drawdown schedule, including the rcleaso flow (cubic
feet per second; efs) for the impounded waters. 'tae drawdown should be performed to minimize
prolonged Increased flows so as to not degrade downsunam habiW. Conversely, the mitigatiot
plan should outliste pt:gmed flows durimg iltt darn removal process. Minimum flows
downstream afthe darn should be msintaine:d during the entire process to minimize dowmse
impacts to aquatic resomeft doe to low flow eond'stcotis.
Page 7. Section 5.1 - Pro-Constivctivae Monitoring
In addition to a bavhic maoroinvenebmto survey, a fish storey within the impounded section
should be eoruducted prior to dawsiering rho impoundment Pre-manitoti v also should inolgde
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OCT-25-2004 MON 10:33 TEL:[phone]e93 NAME:DWO-WETLANDS P. 3
Oct 25 04 12:36p Restoration Systems
?h.. .. :ill- ?L,
huge 3
30 September 2004
P.mwccha - Carboutoo_ Dam Removal
5.
6.
7
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e7C MSive downsleearn sampling of the aquatic caamaunity sttchrding bondxic mac rein aricbmtes,
fish atA Mussels for baseline ctlmaparns?ous?. Stuvtys should be conducted by biologfM with both
snare and federal endangered species permits.
Page 7, Section 5.2 - Lowering the Impoundment
It was stated that 404 and 401 permits are not requited for draining and notching tho dam. Prior
dons mmovai pmjocts have requimd 401 permits; we suggest that Restoration Systems LLC
confirra wiwt the Division of Water Quality (D Why that a permit is not needed.
Page 8, Section 53 - Engineered Notch '.rb=mcnt
it was stated that a notch engineered to be of suffiesmt sic to accommodate average riverflow
will be cut from the dam. Notching the dare while allowing the renmzndor of tine dash to shad at
the cxisting hci& may cause high velocities and sberor stress downstream during b.+gh flaw or
flood events and the notch array act owcb We a culvert in a stream with a filled floodpWm 'this
concern should be addrtssod in tine makigation plan. M alternative would be to lower the height
of the dam to contain s&lkwnt yet allow for overflow during high Elovt, or flood events.
It war stated that .sediments. if present, will be pulled back from the dam wbem the nc4ch wip be
installed and spread out onto adjacent areas of the channel, it is Uely that these sediments will
be unmable. The mitigation plan should include what measures will be taken to sniagssize
significwn downstream release of sedtrnent during high flow or flood events.
Page 9, Section 6.0 Mitigation Monitoring and Success
R'hi 1e mochoring activities were adequat* defined, we do not feel that. suc om criteria minced
to these monitoring activities wom adequately defined Items such as rivet geomorphology and
riparhm vepastion did not contain success parameters. Sucoeas parameters should be addrss4cd
in the ?nitigatiors pier.
Page 9. Scctim 6.1.1- River Geomorphology Monitoring
It was stated cross-sectiaas will be located 1,3. 6.9, aid 12 smiles from the darn, in both up and
down stns; em directions to measure the d mtge in ebe river ebannel. We reom=end, at a
miu ru mn., a rifnz cresroectian with a pebble eotntt be steluded at torch of %c erns 4ecttions
stated above. Additionally, wo recommend at least orte ritfEe cross,sectioa with a pebble count
for each tributary used for mitigation credit Depending on tributary kA th, morn titan one riffle
cross-sectiosn with pebble count may be needed.
Page 10, Section 6.12 - Sedimcnt Transport
It was Stated that sedittnwt cores wizi be collected at each of tha twelve pestaarmu cress-section
locations to determine to change in particle size distribution; however, it appears there are only
10 permanent cross seetiam (Page 9, Section 6.1.1). This should be ch if ed. In addi tkn to the
upst=m rctonitoring, we rtcoanmcad that a couple of permanent cross-section be located
downstream of the dawn to monitor cbaoge in paatlete sine 4WAbution prc- and poet-dam rentvv&L
Dawnstrream cross-section locations would likely be dependant out particle slue upstream of the
dash.
IISb-6lri-see
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9197559492
dee =E0 ts0 OC dos
OCT-25-2004 MON 10:33 TEL:[phone] NAME:DWO-WETLANDS P. 4
Oct 25 04 12:36p Restoration Systems 9197559492
AAL K:.4
n33Z5 e'.005/OUS
• POV4
30 September 2004
- Caxboutm Dam Removal
It wits stated that if a sediment wedge is fotasd to exist behind the don following gradual
dewatering ofthe impourtdmant then coatamitwd 3amprcng will be conducted. We recommend
that an estimate on the quantity of sediment behind tht darn should be included io The Mi igatioat
plan along with a Tier I sediment contaminants study. Depending on total quantity of sed'ancrm
found and the result of the Tier I study, additional studies may be needed.
10. Page 10, Section 6.13 - Riparian Vegetation
It is exported that buffer reforestation will occur naturally and suppkmeutal plantings am not
expected- Assvuting ownership of currecttly 6midated land will revert to the adjavoQrt land owner
unless it is purchasod by Systems Restoration. LLC for riparian buffer, the majority of this site
will not be in control of Systcros Rostoration, LLC. The mitigation plan should delineate how
issues or problems rciated to stream bank stabilization or re.vegatation will be addressed. Also,
we are concertied about the buck of riparian buffer that will be, protftwd_ Ripiniat? butkn an
nocded to pnotnat stream stabift. A minitntmt 100 -foot buffer. profembly 2004xx buffer,
should be estaNkhad acrd maintained along rho entttz section of Deep River and each tributary
used for mitigation credit 77ke rn itigation platy should address measures that wilt be takc+t to
protect riparian btttknt (e.g.. pttrcham. easement, or county ordkwwes)-
I L Page 12. Section 6.1.5 - Biotic Community Changes
Surveys of bentbic mactoinvtrtebraies, frshc$ and mussels should be perfonried to doaatrcnt
changes in aquatic oommra* structure pre- and post-lam temovul. Surreys should be
conducted by biologists with both state sad fedora! endar<tgepcd spooies permits,
12- Page 14, Section 7.2.1- Credit Dewmination
The technique (L r--, Pemantnt cross sections or mottitoring stations, slow rcgimc, Cu.) used to
detemrint the ups* ¦. lim its of availab)e srnssrn credit, in conjunction with monitoring and
success criteria, should be described in the mitigation plan This is particularly of intp?est for the
20 tributaries included in the credit calculation. Additionally, we ark that the mitigation plan
include river elevation at the dam and river elevAiost for each of the tributaries on the USGS rsrsp.
There is a potential for the loss or additioa of wetlands aasociattd with this pmjoa Also, there is
the patetttW for the Restoration Systems, LLC to seek credit foe any additions of wetlands. This is
not addressed in the prospectus and should be addressed in the mitigation plan
lbank you for the opportunity to provide input it the early planning stages for this project if we
cm be of firrther a8sL tent, please contact our office at [phone].
cc (email): David Con, VaC
TYaris Wil.44tt, WRC
Chris Goudmui. WRC
Todd bwW& WRC
Ryan Heise. WRC
Brian McRae, WRC
Tana Kwuk, NCSU
S'd IISib-6br-9CC
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p.5
dez=E0 *0 OE des
OCT-25-2004 MON 10:34 TEL:[phone]e93 NAME:DWQ-WETLANDS P. 5
MULTI COMMUNICATION REPORT
DATE OCT-25-2004 MON 10:40
NAME DWQ-WETLANDS
TEL [phone]
REF. NAME
COMMUNICATION MODE : TX
NO. FAX NAME/NUMBER
580 94694778
580 98469467
START TIME TIME MODE
10-25 10:29 01'36" ECM
10-25 10:38 00'37" ECM
TOTAL TIME 00:02'13"
TOTAL PAGES : 6
PAGE
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04-1092 Deep River Mitigation Bank (a.k.a. Carbonton Dam Removal...
Subject: 04-1092 Deep River Mitigation Bank (a.k.a. Carbonton Dam Removal Project)
From: Bob Zarzecki <[e-mail]>
Date: Tue, 11 Jan 2005 14:36:44 -0500
To: John Dorney <[e-mail]>, Cyndi Karoly <[e-mail]>
John & Cyndi,
I just wanted to touch base on this project before I left. John is very familiar
with the project and the issues that surround it. It's somewhat related to the Siler
City / Rocky River Lower Reservoir Expansion project in that approximately 10% of the
stream mitigation generated by the bank would be used to mitigate for the reservoir
(although this has not been finalized). Todd Tugwell is the lead on the MBRT. Jean
is on it as well. The prospectus and meeting notes are in the file.
Cyndi,
It would probably be a good idea for you to sit down with John and let him brief you
on the project. The file is in the on hold cabinet (Chatham Co.) for lack of a
better place. You may want to move it to the mitigation bank cabinet.
- Bob
1 of 1 1/11/2005 2:45 PM
04-1092, Deep River Mitigation Bank/Carbonton Dam Removal, Cha...
Subject: 04-1092, Deep River Mitigation Bank/Carbonton Dam Removal, Chatham County
From: Cyndi Karoly <[e-mail]>
Date: Mon, 17 Jan 2005 09:53:08 -0500
To: "Tugwell, Todd J SAW" <[e-mail]>
CC: debbie Edwards <[e-mail]>, Bob Zarzecki <[e-mail]>
Well Todd, I knew we'd soon have another opportunity to put Debbie Edwards on a
Mitigation Bank Review Team and here it is. Debbie, this one is already in progress
and Bob Zarzecki has already been involved. I'm going to place the file, along with
a copy of this e-mail, in your in-box. Please try to budget a bit of Bob's time to
get up to speed before he leaves. If that doesn't work out, Dorney has knowledge of
this file as well. Todd - as future meetings are scheduled, please note that Debbie
will pick up where Bob left off. Please note that this is Debbie's first MBRT
experience so she will be on a learning curve.
1 of 1 1/17/2005 9:53 AM
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Natural Resources
Restoration &C'onservation
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Prospectus
Deep River Mitigation Bank
June 25, 2004
Mr. John Domey
NC Division of Water Quality
Wetlands Section
2321 Crabtree Blvd., Suite 201
Raleigh, North Carolina 27604-2260
Dear Mr. Dorney:
HOZ 9 9 N(V
4089 * / SONVI13M
41092
Restoration Systems is pleased to provide you with the enclosed Prospectus for
the development of the Deep River Mitigation Bank. This submittal is in keeping with
the recently finalized state and federal guidance, "Determining Appropriate
Compensatory Mitigation Credit for Dam Removal Projects (Expired Public Notice
04.21.04)."
Restoration Systems has requested that the U.S. Army Corps of Engineers (Corps)
form a Mitigation Banking Review Team (MBRT) to evaluate this Prospectus. The
Corps has asked that we send the Prospectus out to probable MBRT. They will contact
you regarding the first meeting of the team. If another person in your office might be
more appropriate to serve on the team, please forward this document to them, and let
Todd Tugwell of the Corps know who will represent your agency at [phone], Ext
26.
It is Restoration Systems understanding that resource agencies have a desire to
expedite dam removal projects because of the immediate benefits to the environment.
We will work with you and your agency in any way possible to facilitate such a
consideration. A pending permit from the Town of Siler City relies in part on mitigation
credit from this project.
If you have any question for me, please do not hesitate to call me at the number
below or email me at [e-mail].
Pilot Mill • 1101 Haynes St., Suite 107 • Raleigh, NC 27604 • www.restorationsystems.com - Phone: [phone] • Fax: [phone]
We look forward to working with you on this innovative and important restoration
project.
Kindest regards.
Sincerely,
64
George A. Howard
RESTORATION SYSTEMS
Cc:
Mr. Mike Wicker
US Fish and Wildlife Service
Raleigh Field Office
PO Box 33726
Raleigh, North Carolina 27636-3726
Ms. Becky Fox
US Environmental Protection Agency
1349 Firefly Road
Whittier, North Carolina 28789
Mr. David Cox
NC Wildlife Resources Commission
1142 I-85 Service Road
Creedmoor, North Carolina 27522
Mr. Todd Tugwell, U.S. Army Corps of Engineers
Mr. Jerry McCrain, Ecoscience Corporation
Mr. Matt Cusack, Ecoscience Corporation
Mrs. Jan Goodson, J. Carter and Associates
Mr. Glen Dunn, Poyner and Spruill, L.L.P.
Mr. Joel Brower, Town Manager, Siler City

PROSPECTUS
DEEP RIVER MITIGATION BANK
DEVELOPED THROUGH REMOVAL
OF
CARBONTON DAM
LEE, CHATHAM AND MOORE COUNTIES
NORTH CAROLINA
PREPARED BY:
a-: ,
RESTORATION SYSTEMS, LLC
1101 HAYNES STREET, SUITE 107
RALEIGH, NORTH CAROLINA 27604
AND
EcoScience
ECOSCIENCE CORPORATION
1101 HAYNES STREET, SUITE 101
RALEIGH, NORTH CAROLINA 27604
JUNE 2004
47UNOS/401 GRoU
P
JUN 2 5 2004
WATER QUALITy cC
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TABLE OF CONTENTS

7

1.0 INTRODUCTION .................................................................................................................1
1.1 Project Description .................................................................................................. ..1
1.2 Purpose and Approach ............................................................................................. ..2
2.0 PHYSICAL RESOURCES .................................................................................................. ..3
2.1 Regional Characteristics ......................................................................................... ..3
2.2 Water Resources .................................................................................................... ..3
2.2.1 Clean Water Act Section 303(d) Streams ........................................................... ..4
2.2.2 Best Usage Classifications ................................................................................ ..4
2.2.3 Water Quality ..................................................................................................... ..5
2.3 Summary of Potential Impacts to Water Resources ................................................ ..5
3.0 BIO TIC RESOURCES ....................................................................................................... ..5
3.1 Aquatic Community ................................................................................................. .. 5
4.0 CULTURAL RESOURCES ................................................................................................ ..6
5.0 DAM REMOVAL ACTIVITIES ............................................................................................ ..7
5.1 Pre-Construction Monitoring .................................................................................... ..7
5.2 Lowering the Impoundment ..................................................................................... .:7
5.3 Engineered Notch Placement .................................................................................. ..8
5.4 Dam Removal ......................................................................................................... ..9
6.0 MIT IGATION SUCCESS AND MONITORING ................................................................... ..9
6.1 Monitoring Strategy ................................................................................................. ..9
6. 1.1 River Geomorphology ........................................................................................ ..9
6.1.2 Sediment Transport ........................................................................................... 10
6.1.3 Riparian Vegetation ........................................................................................... 10
6.1.4 In-River Habitat Restoration ............................................................................... 11
6.1.5 Biotic Community Changes ................................................................................ 12
6.1.6 Physical Water Quality ....................................................................................... 12
6.2 Success Criteria ...................................................................................................... 13
6.3 Remediation Strategy .............................................................................................. 13
7.0 MITIGATION BANK DETAILS ........................................................................................... 14
7.1 Anticipated Customers ............................................................................................ 14
7.2 Available Credit and Proposed Release .................................................................. 14
7.2.1 Credit Determination .......................................................................................... 14
7.2.2 Potential Credit ................................................................................................... 15
7.2.3 Credit Release Schedule .................................................................................... 15
Scenario 1-Preferred ....................................................................................16
Scenario 2 ....................................................................................................16
7.3 Perpetual Maintenance of Mitigation Bank .............................................................. 16
7.4 Non-project Development Scenario ......................................................................... 16
7.5 Dam Ownership ...................................................................................................... 17
7.6 Corporate Experience ............................................................................................. 17
8.0 JURISDICTIONAL TOPICS ............................................................................................... 17
8.1 Waters of the United States ..................................................................................... 17
8. 1.1 Agency Review .................................................................................................. 18
8.1.2 Permits .............................................................................................................. 19
8.2 Rare and Protected Species .................................................................................... 19
8.2.1 Federally Protected Species .............................................................................. 19
8.2.2 Federal Species of Concern ............................................................................... 23
REFERENCES ......................................................................................................................... 25
APPENDICES
1

LIST OF FIGURES
Figure 1. Site Impoundment Location Map Appendix A
Figure 2. Mitigation Service Area
Figure 3. Stream Restoration Corridor Appendix A
Figures 4A-4E. Aerial View of Site Impoundment Appendix A
Figure 5. Photographs of Carbonton Dam and Proposed Notch Placement Appendix A
Figure 6. Potential Mitigation Credit Map Appendix A
LIST OF TABLES
Table 1. Dam Prioritization through Rankings of Environmental Advantages Appendix A
Table 2. Summary of water quality parameters within the Site impoundment Appendix A
Table 3. Proposed pre-removal monitoring activities for the Deep River Appendix A
Mitigation Bank
Table 4. Credit release schedule for 3 possible release scenarios Appendix A
Table 5. Federally Protected Species listed for Chatham, Lee, and Page 20
Moore Counties
Table 6. Federal Species of Concern listed for Chatham, Lee, and Page 24
Moore Counties

' MITIGATION PROSPECTUS
DEEP RIVER MITIGATION BANK
THROUGH REMOVAL OF CARBONTON DAM
CHATHAM, LEE, AND MOORE COUNTIES
NORTH CAROLINA

1.0 INTRODUCTION
Restoration Systems proposes the establishment of a stream mitigation bank along a reach of
' the Deep River, located at the juncture of Chatham, Lee, and Moore Counties, North Carolina
(Figure 1, Appendix A). This Mitigation Prospectus (hereafter referred to as the "Prospectus"),
describes the existing conditions, goals, methods, and monitoring protocols proposed by
' Restoration Systems to be utilized to generate between 90,494 and 116,350 linear feet of
stream mitigation credit for the successful removal of Carbonton Dam.
' 1
1 PRO
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IPTION
The mitigation site (hereafter referred to as the "Site impoundment") consists of the Carbonton
Dam and associated impoundment located approximately 9 miles west of Sanford within the
Cape Fear River Basin (Hydrologic Unit [HU] 03030003). Although the proposed project occurs
in HU 03030003, the mitigation bank is anticipated to have a Mitigation Service Area ("Service ,

' Area") that includes all of HU 03030003 and 03030002 (Figure 2, Appendix A). The
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n land use, geology, and ecoregion patterns of these two watersheds indicates that w,
impacts to jurisdictional areas within 03030002 may be mitigated through a regional approach to H Lk
' watershed planning. This portion of the Cape Fear River Basin encompasses portions of 5%,44e-,
Guilford, Randolph, Alamance, Chatham, Lee, Moore, and Montgomery Counties.
Municipalities potentially serviced by this mitigation project include portions of Asheboro, Chapel
' Hill, Durham, Greensboro, High Point, and Siler City.
The Site impoundment was converted to a hydroelectric impoundment in the early 1900's. The
' hydroelectric facility includes a dam approximately 16 feet in height and 270 feet in width
constructed of steel/reinforced concrete. Currently, the impoundment is contained within the
banks of the Deep River and its tributaries resulting in a bank-to-bank system with water depths
' ranging up to approximately 25 feet and pond widths ranging from approximately 150 to 270
feet. Channel widths and depths within the impounded reaches of tributaries to the
' impoundment are dependent upon the historic flowing (lotic) conditions of the tributaries.
Tributary widths range from 5 to 35 feet in width, and depths that are dependent upon the effect
of impoundment extending from the main pool elevation upslope until the tributaries bed
elevation is higher than the elevation of Carbonton Dam.
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Deep River Mitigation Bank Prospectus Restoration Systems, LLC
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' The Carbonton Dam has effectively eliminated flowing stream characteristics for approximately
129,282 linear feet of stream ecosystem (49,622 linear feet within the Deep River and 79,660
linear feet of tributaries). The goals of this project are to reverse the adverse environmental
affects caused by impoundment of the river that include:
' • Inundation and loss of riparian and wetland areas.
• Inundation, fragmentation and loss of shallow water habitat for the Cape Fear Shiner
' (Federal Endangered Species).
• Alteration of water temperatures, seasonal fluctuations in water oxygen levels.
' Interruption of in-stream sediment supply.
' Inhibition of upstream and downstream fish passage.
• Reduced downstream flow.
' Inundation and loss of mussel habitat (Atlantic Pi9toe brook floater, yellow lamPmussel
,
' Carolina creekshell).
• Down-cutting and channel erosion below the structure.
r Land use adjacent to the Site impoundment is predominantly undisturbed woodland, with areas
of agriculture, maintained grass (House in the Horseshoe historic site), and pine plantations
' occurring less frequently in smaller patches. The entire Site impoundment is bordered by a
mature riparian buffer that varies in width from a minimum of 100 feet to forested tracts of
undeveloped land adjacent to the Site impoundment. The Site impoundment occurs within the
Triassic Basin ecoregion at elevations of approximately 217 to 230 feet above sea level.
1.2 PURPOSE AND APPROACH
' The purpose of this Prospectus is to present dam removal as a new and ecologically effective
approach to environmental mitigation and stream restoration in the State of North Carolina.
Currently, stream restoration techniques focused on fluvial geomorphic principles (Rosgen et a1.
' 1996) are the most widely accepted methods being used for compensatory stream mitigation
within North Carolina. While use of these techniques is a proven approach, other stream
restoration methods have been used throughout the United States with equal success. Dam
' removal projects have been implemented in all 50 states, resulting in a variety of water quality,
sediment transport, and wildlife benefits to the impacted watersheds. Additionally, a
cooperative task force has been formed from state and federal regulatory agencies to promote
' dam removal in North Carolina for habitat-based fish restoration. The North Carolina Dam
Removal Task Force (DRTF), whose members are listed in Table 1 (Appendix A), have
prioritized dams in North Carolina to identify the dam removals that would result in the most
' substantial ecological benefit. Carbonton Dam placed as the fourth most beneficial dam to
remove, but is the second highest priority if Cape Fear Locks and Dams 2 and 3, which are
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Deep River Mitigation Bank Prospectus Restoration Systems, LLC

public dams managed by the ACE, are would require an Act of Congress to remove. As
indicated by the formation of DRTF, dam removal projects have the potential to provide large
scale benefits to the watershed, and the opportunity for generating compensatory stream
mitigation has been identified by the DRTF as a potential source of funding to facilitate dam
removal. This Prospectus identifies dam removal benefits, methods, and success criteria so
that removal of Carbonton Dam can be developed into mitigation credits that are available
through establishment of the Deep River Mitigation Bank.
2.0 PHYSICAL RESOURCES
2.1 REGIONAL CHARACTERISTICS
The Site impoundment is located within the Triassic Basin ecoregion of North Carolina. This
ecoregion is characterized by irregular plain's with low rounded hills and contains less relief and
wider valleys than other areas of the Piedmont. Soils contain more clay than is typical in other
regions, and streams are characterized by low base flows (Griffith et al. 2002). The Site
impoundment occurs within the relict channel of the Deep River, characterized by steep banks
with periodic areas of bank failure in locations where mature trees have been toppled by storms
or flood flows.
2.2 WATER RESOURCES
The Site impoundment is located within sub-basin 03-06-10 of the Cape Fear River basin
(NCDWQ 2000). This area is part of U.S. Geological Survey (USGS) Hydrologic Unit 03030003
of the Southeast Atlantic Region. The mitigation reach of the Deep River supports a watershed
encompassing approximately 1000 square miles of land area (NCDWQ 2000). Three named
perennial streams (Big Governor's Creek, McLendon's Creek, and Lick Creek) and 17 unnamed
tributaries contribute to the Site impoundment (Figure 3, Appendix A).
The entire reach of the Site impoundment is characterized as a lentic, deepwater habitat
contained within the incised banks of the Deep River. The Site impoundment flow regime is
typically low, but increases to moderate flow at times of flooding. The impoundment ranges
from approximately 150 to 270 feet in width, and water depths range up to approximately 25 feet
(Figures 4A-4E, Appendix A). Water clarity typically extends 2 to 5 feet below the water
surface.
The effect of the Carbonton Dam was calculated using field survey of water surface elevations
based upon USGS survey benchmarks. Using the USGS benchmarks, the elevation of the dam
and the water surface elevations directly behind the dam (the head pool) could be measured.
Additional water surface elevations were taken at road crossings of the Site impoundment until
a change in water surface slope was observed. Using the elevation data, the water surface
slope of the Deep River was extrapolated between the last known slack water location and the
first lotic (flowing) location. It was determined that the Norfolk Southern railroad bridge was the
nearest physical feature to the resumption of flow in the Deep River upstream of the Carbonton
dam. During field visits with agency personnel in March and April 2003 the transition point at
the railroad bridge was confirmed by direct observation using boats for river access.
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Tributaries that contribute to the Site impoundment range from small, unnamed intermittent
tributaries to large (30 or more feet wide), perennial named streams. There are three named
tributaries that reach the Site impoundment: Big Governor's Creek, McLendon's Creek, and Lick
Creek. The watershed sizes of the named tributaries are 40-square miles, 100 square-miles,
and 1 square-mile for Big Governor's, McLendon's and Lick Creek, respectively.
2.2.1 Clean Water Act Section 303(d) Streams
The North Carolina Division of Water Quality (NCDWQ) has assembled a list of impaired water
bodies according to the Clean Water Act (Section 303(d)) and 40 CFR 130.7, hereafter referred
to as the NC 2000 Section 303(d) list. The list is a comprehensive public accounting of all
impaired water bodies. An impaired water body is one that does not meet water quality
standards including designated uses, numeric and narrative criteria and anti-degradation
requirements defined in 40 CFR 130.7. The standards violation may be due to an individual
pollutant, multiple pollutants, or an unknown cause of impairment. The source of impairment
could be from point sources, non-point sources, and/or atmospheric deposition. Some sources
of impairment exist across state lines. North Carolina's methodology is strongly based on
aquatic life use support guidelines available in the Section 305(b) guidelines (EPA-841-B-97-
002A and -002B). Those streams attaining only Partially Supporting (PS) or Not Supporting
(NS) status are listed on the NC 2000 Section 303(d) list. Streams are further categorized into,
one of six parts within the NC 2000 Section 303(d) list, according to source of impairment and
degree of rehabilitation required for the stream to adequately support aquatic life. Within Parts
1, 4, 5, and 6 of the list, North Carolina has developed a priority ranking scheme (low, medium,
high) that reflects the relative value and benefits those water bodies provide to the State.
The Site impoundment is not listed in any section of the NC 2000 Section 303(d) list, but
adjacent tributaries including Big Governor's Creek and McLendon's Creek were listed as
impaired in the 1996 Cape Fear Basinwide Management Plan (NCDWQ 1996). These streams
are no longer on the NC 2000 Section 303(d) list, but the impounded reaches of these
tributaries would benefit from the resumption of flow and increased dissolved oxygen
concentrations likely to result from removal of the Carbonton Dam.
2.2.2 Best Usage Classifications
North Carolina streams have been assigned a best usage classification by the NCDWQ, which
reflects water quality conditions and potential resource usage. Unnamed tributaries receive the
same classification as the streams to which. they flow. The Site impoundment of the Deep River
is currently classified as WS-V HWQ until reaching a confluence with Big Governor's Creek, at
which time the classification of the impoundment changes to WS-IV. A classification of WS-V
indicates waters protected as water supply sources which are generally upstream and draining
to WS-IV waters. WS-V has no categorical restrictions on watershed development or
wastewater discharges. The supplementary classification HQW identifies waters for protection
that maintain quality higher than state water quality standards. A classification of WS-IV
indicates waters used as sources of water supply for drinking, culinary, or food processing
purposes for those users where a WS-I, II, or III classification is not feasible. WS-IV waters are
generally in moderately to highly developed watersheds or protected areas. Big Governor's
Creek, McLendon's Creek, and Lick Creek are all classified as C. A classification of C indicates
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' waters that are suitable for aquatic life propagation and survival, fishing, wildlife, secondary
recreation, and agriculture.
' 2.2.3 Water Quality
The water quality of the Site impoundment has been measured at regular intervals by the Upper
Cape Fear River Basin Association (UCFRBA) and by NCDWQ at an Ambient Monitoring
Station located near N.C. Highway 42 at Carbonton. Water quality parameters that are
monitored include temperature, specific conductivity, dissolved oxygen, pH, fecal coliform,
chlorophyll-a, turbidity, and total suspended solids (TSS). Table 2 provides a summary of
trends in water quality within the Site impoundment over time. Water quality impairment
periodically occurs within the Site impoundment, with fecal coliform, dissolved oxygen, and
' temperature attaining levels that are detrimental to native aquatic communities. The most
recent NCDWQ data indicate that the Site impoundment and associated main tributaries are
support-threatened or not-supporting their intended uses.
t 2.3 SUMMARY OF POTENTIAL IMPACTS TO WATER RESOURCES
Impacts to water resources within the Site impoundment may result from activities associated
' with dam removal. Activities that could occur as a result of dam removal are: fill (concrete)
entering -the Deep River during final removal of the dam; compaction of soils at the dam removal
site; uncontrolled release of sediments; and increased potential for release of fuel, oil and
' hydraulic fluid from construct on equipment. ?c
In order to minimize these potential impacts to water resources in the project study area, Best S
' Management Practices (BMPs) intended to protect surface waters will be strictly enforced
during the dam removal phase of the project. BMP's will include: minimizing incidental fill as aH
result of dam demolition to the greatest extent possible and removing fill material from waters;
' ripping and scarifying construction staging site soils following construction; ei inatin
uncontrolled release of sediment by a phased approach to demolition; briefing and monitoring
equipmen opera ors to ensure fuel lines are properly maintained to preclude leakage, and
' ensuring that problems will be addressed immediately.
' 3.0 BIOTIC RESOURCES
This discussion of biotic resources located within the Site impoundment is limited to aquatic
fauna. Although terrestrial organisms such as birds, reptiles, and aquatic foraging mammals
' use the section of the river and are likely to benefit from dam removal, primary monitoring efforts
associated with dam removal will focus on benthic macroinvertebrate and fish communities.
This section describes the communities encountered and the potential changes in these
' communities induced by removal of the Carbonton Dam. The composition and distribution of
fauna throughout the Site impoundment is reflective of the bathymetry, flow, light penetration,
and substrate within the impoundment.
3.1 AQUATIC COMMUNITY
Previous benthic macroinvertebrate and fish community sampling efforts indicate that the Site
' impoundment supports a bioclassification of Good (criteria for classification is based on the
number of taxa present in the intolerant groups and the Biotic Index Value), which indicates a
potentially diverse aquatic community of macroinvertebrates and fish present within the Site
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impoundment (NCDWQ 2000). Bioclassification data have also been collected for the
impounded sections of Big Governor's Creek and McLendon's Creek. These streams were both
rated Fair, which indicates that the abundance and diversity of intolerant macroinvertebrate and
fish species in decline from previous sampling efforts. Aquatic insects typically found in a lentic
community are representative of the aquatic habitats that the system can provide. Low flow
conditions and seasonally low dissolved oxygen will affect the resident community structure of
the Site impoundment. Also, nutrient rich water that stagnates behind the dam facilitates algal
blooms that can further inhibit dissolved oxygen levels and contribute to environmental stress to
aquatic communities. The most intolerant orders of aquatic insects are the mayflies (Order
Ephemeroptera), caddisflies (Order Trichoptera), and stoneflies (Order Plecoptera) (known
collectively as "EPT"). Individual genera within each of these orders vary with respect to
specific habitat requirements, but organisms can be grouped by feeding guilds. Feeding guilds
are functional feeding groups that include grazers, shredders, gatherers, filter-feeders, and
predators. The filter-feeder, grazer, and shredder guilds are anticipated to be less dominant or
absent in the Site impoundment than in natural reaches of the Deep River due to the lack of flow
and decomposing vegetative debris. Seasonal stratification of temperature within the Site
impoundment can result in reduced dissolved oxygen levels below the area of light penetration
thereby inhibiting decomposition of organic material. Once the dam is removed and lotic
habitats are restored, EPT diversity should increase.
A variety of freshwater fishes typically found in lentic habitats are also expected to inhabit the
Site impoundment. It is anticipated that the existing fish community is characterized by low
diversity with increased abundance of particular species capable of exploiting available habitat
niches within the impoundment. Once the dam is removed, the fish community structure should
become more diverse as lotic habitats are restored. As aquatic insect abundance increases,
fishes feeding on the previously reduced feeding guilds will also increase. It is also anticipated
that fish species considered to be less tolerant to fluctuations in temperature and dissolved
oxygen will be more abundant, such as the federally endangered Cape Fear shiner (Notropis
mekistocholas). The shiner is generally associated with gravel, cobble, and boulder substrates
and has been observed to inhabit slow pools, riffles, and slow runs (FWS 1988). In these
habitats, the species is typically associated with schools of other related species, but it is never
the numerically dominant species. Juveniles are often found in slackwater, among large rock
outcrops in midstream, and in flooded side channels and pools (FWS 1988).
4.0 CULTURAL RESOURCES
The term "cultural resources" refers to prehistoric or historic archaeological sites, structures, or
artifact deposits over 50 years old. "Significant" cultural resources are those that are eligible or
potentially eligible for inclusion in the National Register of Historic Places. Evaluations of site
significance are made with reference to the eligibility criteria of the National Register (36 CFR
60) and in consultation with the North Carolina State Historic Preservation Office (SHPO). A file
search was conducted at two SHPO offices (the Office of State Archaeology [OSA] and the
Survey & Planning Branch) in order to determine whether cultural resources investigations have
been conducted within the project vicinity, and to determine whether significant cultural
resources have been documented within the Site impoundment.
On January 20, 2004, a review of Survey and Planning records found that the dam and
' associated power house were identified during a survey of historic structures in Lee County in
1992 (State record LE-106). Although identified as historic structures in the survey of Lee
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County, the dam and the power house were not proposed for listing in the National Register.
Several other historic records are located within the two miles of the dam, but none are located
within the channel of the Deep River.
On January 20, 2004, a review of OSA records was conducted. No known records occur within
two miles of the dam location. An anecdotal record for the Evans Lock and Dam, part of the
Deep River Navigation System, is thought to have existed in the area. Delores Hall, SHPO,
stated in a personal discussion about the Deep River Navigation System that if the Evans Lock
and Dam was historically located near the Carbonton Dam, it was probably on the existing dam
site and was totally removed for the construction of the Carbonton Dam by the Sand Hill Power
Company.
Although proposed mitigation activities are not expected to have deleterious impacts to known
cultural resources, SHPO reserves the right to a full survey of the site prior to any
deconstruction activities. Additionally, SHPO has suggested a short written discussion of the
cultural characteristics of the dam prior to any deconstruction activities. Further consultation
with SHPO will be undertaken to gain Section 106 approval for initiation of work at the dam site.
5.0 DAM REMOVAL ACTIVITIES
' The removal of the Carbonton Dam is proposed to occur through a staged approach. The
stages will be designed to carefully evaluate and remediate potential disturbances to water
quality or aquatic life within the Deep River. The stages of dam removal are: preconstruction
' monitoring, lowering of the impoundment through the dam floodgates to facilitate construction
activities, constructing an engineered notch in the dam to allow natural channel formation and
controlled release of sand from the natural stream channel behind the dam, and full breech and ?
' complete demolition of the dam.
S
5.1 PRE-CONSTRUCTION MONITORING
' Several forms of pre-removal monitoring are already underway. Sediment transport data, river
geomorphology, and water quality measurements have already been obtained. Prior to
dewatering the impoundment, benthic macro-invertebrates will be collected. The details and
' success criteria associated with the proposed monitoring program will be discussed in greater
detail in Section 6.1.
5.2 LOWERING THE IMPOUNDMENT
Using the existing dam floodgates, dewatering of the Site impoundment can be achieved in a
controlled manner to allow construction equipment to gain access to the back of the dam. It is
anticipated that dewatering of the impoundment will occur in the spring (March 2005). Notch
construction can begin soon after while the seasonal weather conditions remain desirable.
Natural debris (logs and trees) will be cleared from the floodgates as necessary to prevent
clogging. Section 404 and Section 401 permits are not required for draining and notching the
dam (personal communication with John Thomas during field review, April 29, 2003).
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Deep River Mitigation Bank Prospectus Restoration Systems, LLC
5.3 ENGINEERED NOTCH PLACEMENT
Once the Site impoundment has been dewatered, construction equipment will have access to
the back of the dam. With the floodgates still open, a notch engineered to be of sufficient size to
accommodate average river flow will be cut from the dam (Figure 5, Appendix A). Sediments,
if present, will be pulled back from the dam where the notch will be installed and spread out onto
adjacent areas of the channel. The dam section to be notched and removed will be tethered
with bolts and chains, and separated from the remainder of the dam through one of several
possible techniques. It is expected that adaptive deconstruction techniques will need to be
applied once the dam notching is underway because the materials used in the original dam
construction are not known. The preferred notching technique involves pre-splitting the dam to
create the notch by boring holes and applying wedges to strategically placed cracks for tethered
removal of sections. It is anticipated that the dam will be notched to either bedrock elevation or
the existing water surface elevation of the river section below the dam (the "tail race"). The
notched section of the dam will be removed by heavy equipment, resulting in only minimal
impacts to water quality (de minimus fill) within the Deep River. Only sediment located in the
flow path behind the notch and in areas directly adjacent to the newly formed channel is
expected to be transported during this phase of dam deconstruction. Before dam
deconstruction activities are completed, a full growing season will intervene to ensure that
sediment that may occur behind the dam has been stabilized by vegetation. Supplemental
seeding or planting can be undertaken to stabilize any exposed sediments, if necessary.
The notching of the dam will be seasonally dependent. Personal communication with Mr. Mike
Wicker, United States Fish and Wildlife Service (USFWS), has resulted in the selection of a
period from early spring to early summer (March 1 through June 15) as the most appropriate
time for dam notching to reduce the chances of deleterious ecological impacts. The lower flows
and maintained lower water temperatures associated with this period will be beneficial in
reducing downstream ecological impacts to aquatic fauna due to the potential release of
sediments containing decomposing organic materials with a high biological oxygen demand
(BOD). Sedimentation causing high BODs can result in fish mortality if the ambient dissolved
oxygen levels are experiencing normal seasonal lows during late summer and early fall (July 1
to October 15). Additionally, the lowering of the head pond during this period will allow for re-
vegetation during the growing season. Instream work will avoid the summer months when
ambient dissolved oxygen levels are low. Dissolved oxygen concentrations are typically higher
during cool water periods such as the early spring.
The notching of the dam will be seasonally dependent. Personal communication with Mr. Mike
Wicker, United States Fish and Wildlife Service (USFWS), has resulted in the selection of early L
spring (first two weeks of March) as the most appropriate time for dam notching to reduce the c i1
chances of deleterious ecological impacts. The higher flows and lower water temperatures ©IL ?V
associated with early spring or early winter will be beneficial in reducing downstream ecological 0
impacts to aquatic fauna due to the potential release of sediments containing decomposing 0
organic materials with a high biological oxygen demand (BOD). Sedimentation causing high
BODs can result in fish mortality if the ambient dissolved oxygen levels are experiencing normal
seasonal lows (summer). Instream work will avoid the summer months when ambient dissolved
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Deep River Mitigation Bank Prospectus Restoration Systems, LLC
' oxygen levels are low. Dissolved oxygen concentrations are typically higher during cool water
periods such as the early spring.
' 5.4 DAM REMOVAL
It is recommended that complete removal of remaining portions of the dam structure occur in
' late fall, so that similar cool weather conditions are present. The dam will be removed using
methods that will be fully addressed in the restoration plan. Dam removal techniques that have
been used in other areas of the country include: sawing the dam into sections, using a hydraulic
' hammer to crush the dam into sections, impacting the dam (wrecking ball), pre-splitting the dam
(boring holes and applying wedges to strategically placed cracks for tethered removal of
sections) and demolition with explosives (REMR 1994). Demolition with explosives is not
' favored by regulating agencies, so other techniques will be investigated for their suitability for
this project. After removal of the dam is complete, the dam removal site will be graded and
planted with native vegetation.
6.0 MITIGATION SUCCESS AND MONITORING
To monitor the benefit of the Carbonton Dam removal to the ecology of the Deep River, pre-
removal data have already been collected for river geomorphology, sediment transport, and
baseline water quality, and the project will be tracked for changes in river geomorphology,
sediment transport, riparian vegetation recruitment, in-river habitat restoration for federally listed
' species, biotic community changes (fish and benthic macro-invertebrates), and changes in
water quality parameters (fecal coliform, turbidity, dissolved oxygen [DO], temperature, and pH).
The proposed monitoring activities are summarized in Table 3 (Appendix A).
6.1 MONITORING STRATEGY
' The proposed monitoring strategy provided in this document is intended to provide a suite of
physical, biological, and ecological data that will be used to measure the benefit of the removal
of Carbonton Dam to the Deep River.
' 6.1.1 River Geom r holo
Permanent river cha nel cross-sections have been established immediately above and below
' the dam, as well as 1-, 3-, 6-, 9-, and 12-miles from the dam, in both up- and down-stream
directions. These cross-sections will be measured from a rebar monument placed outside of
the channel and located with Trimble@ Global Positioning System (GPS) technology that has `?
reported sub-meter accuracy. From the rebar monument, a cross-section of the channel will be Qo?"
' measured at these twelve locations before the dam is removed (pre-removal), as well as once
each successive year of monitoring after the dam has been removed (post-removal). The pre-
removal data will be compared to the post-removal data to measure the change of the river
channel as the water level recedes into the relict channel and the hydrology returns to a lotic
flow regime. This work is being performed as part of an academic-level dissertation by Ph.D.
' student Adam Riggsbee, University of North Carolina, and supervised by his advisor, Dr. Robert
Wetzel. ESC personnel have been contracted by Restoration Systems to assist Mr. Riggsbee
with field collection of these data, as necessary.
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Deep River Mitigation Bank Prospectus Restoration Systems, LLC
6.1.2 Sediment Transport
Sediment cores will be collected at each of the twelve permanent cross-section locations to
determine the change in particle size distribution. It is anticipated that the sediment particle size
distributed within the impoundment will shift towards increased diameter values after dam
removal. Pre-removal data shows a particle size distribution which is characteristic of an
impoundment. Larger particle sizes are found at the uppermost portion of the impoundment,
while a particle size reduction is seen within transects closer to the dam.
If a sediment wedge is found to exist behind the dam following gradual dewatering of the
Carbonton impoundment (hereafter referred to as "Site impoundment"), contaminant sampling
will be conducted by the USFWS at Restoration Systems' expense. Sediment samples will be
analyzed for the presence of heavy metals, and other contaminants may be considered if
determined to be a possible concern through review of upstream point source discharges. At
this time, contaminated sediments are not anticipated due to the fact that Carbonton Dam is one
of many dams on the Deep River, and the watershed surrounding the Site impoundment is
predominantly rural. Sediment generated from more industrial areas farther upstream, like the
Triad region in the upper watershed of the Deep River, is captured by the 15 dams upstream of
Carbonton, and is not likely to have been transported to the Site impoundment. Careful review
of the proper treatment, handling, or disposal of any identified contaminated sediments will be
pursued through extensive involvement of all commenting regulatory agencies.
6.1.3 Riparian Vegetation
The ability of the Deep River to return to a natural channel that transports sediments and
supports riparian vegetation along the banks will be monitored through a graduate level study by
Dr. Robert G. Wetzel and Mr. Adam Riggsbee of the University of North Carolina. A research
proposal for this work is included in Appendix B. The proposed research program proposes
five integrated objectives: (1) quantify rates of sediment transport from the sediments of the
former impoundment to downstream reaches of the river; (2) quantify the rates of wetland and
riparian plant colonization of the lateral sediments; (3) determine experimentally the stabilization
effects of colonizing wetland vegetation on sediment retention; (4) determine the effects of
colonizing vegetation on nutrient export (N, P) from the dewatering sediments, and determine
nutrient uptake lengths downstream; and (5) use Geographic Information System (GIS)
technologies to develop cartographic models to follow sediment distributions, plant colonization
rates, and predict the collective effects of dam removal on riparian wetland systems.
Floodplain buffer reforestation is expected to occur naturally. The majority of the restoration
reach is currently characterized by a buffer of bottomland hardwood forest and supplemental
plantings are not expected to be beneficial to site restoration. However, if appropriate,
stabilization of sediments at the 5.499 acre dam removal site will be conducted after the
impounded water surface has been lowered and the site examined. Stabilization elements may
be planted on unconsolidated (unstable) sediments in this area. Planting will be designed to
provide bank and sediment stability during the early channel reformation period. Primary
plantings may include native grasses for early stabilization and woody species such as silky
dogwood (Cornus amomum), box elder (Acer negundo), ironwood (Carpinus caroliniana), river
birch (Betula nigra), American sycamore (Platanus occidentalis), black willow (Salix nigra), tag
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alder (Alnus serrulata), buttonbush (Cephalanthus occidentalis), elderberry (Sambucus
canadensis), and viburnum (Viburnum spp.).
1 6.1.4 In-River Habitat Restoration
The lentic flow regime that currently exists within the Site impoundment provides habitat
' characterized by slack, deep water that is likely to exhibit chemical and thermal stratification and
does not contain a defined riffle/pool sequence. These conditions are very different from the
reference upstream/downstream conditions on the Deep River that are characterized by high
' velocity lotic environments with typically shallow water that allows light penetration to the
channel substrate. Additionally, the lotic water mixes the water chemistry and balances the
temperature profile while providing a consistent riffle/pool morphology that facilitates
' opportunistic habitat niches for a variety of macrobenthos and fishes. The Cape Fear shiner
(Notropis mekistocholas) is a federally endangered fish species that occupies the reaches of the
Deep River immediately up- and down-stream of the Site Impoundment. A principle goal for this
' mitigation bank is to restore approximately 10 river miles of shiner habitat and reconnect two
populations of the species that have been disjunct since dam construction in the early 1900s.
' Monitoring activities will be tailored to identify the success of the project in restoring potential in-
stream habitat to conditions that more closely mimic the up- and down-stream reference.
' Physical chemistry data will be collected for pre- and post-removal conditions. Additionally,
ESC and Restoration Systems are prepared to create an aerial, surface video and photographic
database of the impoundment that is correlated to GPS data. The database will provide a
' record of river condition to assist with identification and monitoring of riffle/pool sequences, as
well as riparian fringe areas for comparison of pre- and post-removal time periods. The
database will provide a photographic record of channel and vegetation conditions throughout
' the monitoring period, and facilitate the integration of field-based and GIS-based databases for
additional resource planning.
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Downstream reference
Site impoundment

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6.1.5 Biotic Community Changes
Changes in the biotic community are anticipated from a shift in habitat opportunities as the Deep
River is restored to a lotic flow regime. In-stream, biological monitoring is proposed to track the
changes during the monitoring period. The benthic macro-invertebrate community will be
sampled using North Carolina Division of Water Quality protocols found in the Standard
Operating Procedures for Biological Monitoring (DWQ 2001). Biological sampling of benthic
macro-invertebrates will be used to collect pre-removal baseline data for comparison with post-
removal restored conditions. For fishes, generalized summary results of fish collections
performed by the N.C. State Museum of Natural Sciences are available for pre-removal
conditions. Conversations with Mike Wicker (FWS) indicate that additional field sampling of
fishes for the project are not necessary due to the need for collection permits and the risk of
accidental take of a federally endangered species (Cape Fear shiner). For post-removal
monitoring of fishes, it is anticipated that in-stream habitat monitoring will serve as a surrogate
to additional field collections, and that evaluation of developing substrate, flow, and
geomorphology conditions within the restored reach will be compared to the habitat
requirements of collected species from pre-removal reference areas.
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For benthic macro-invertebrates, monitoring locations will be established within, up-, and down-
stream of the Site impoundment. It is anticipated that post-removal collections may move
slightly from the pre-removal conditions in order to take advantage of developing habitat niches
(i.e. riffles) that cannot be predicted pre-removal. Collection techniques will depend upon the
depth of water in the river since the impounded conditions are very different from reference
conditions. Benthic macro-invertebrate samples will be collected from individual reaches using
the Qual-4 collection method. Sampling techniques of the Qual-4 collection method consist of
kick nets, sweep nets, leaf packs, and visual searches. For deepwater habitats, dredge
samples will be collected as a surrogate to the kick net method. Fine mesh samplers and sand
samples will also be performed based on habitat specifics of individual sites. Collection
procedures will be available for review by DWQ biologists. Pre-project biological sampling will
occur during the spring of either 2004 or 2005, depending upon construction schedules, with
post-project monitoring occurring in the spring of each subsequent monitoring year.
r?
Identification of collected organisms will be performed by personnel by a DWQ
certified laboratory. A reference organism collection will be maintained by ESC and will be
available for taxonomic review. Additional data collected will include D50 values and
appropriate DWQ habitat assessment forms.
6.1.6 Physical Water Quality
Physical water quality parameters are currently collected at an Ambient Monitoring Station
(AMS) located within the Site impoundment at NC42, 400-feet upstream of Carbonton Dam.
These data have been obtained by ESC from DWQ, and data coverage exists on a monthly
basis from year 1992 to present. Data collected by the AMS are not standard for all samples,
but can include: water temperature (°C), dissolved oxygen (mg/L), pH (field measured),
conductance at 250C (pmhos/cm), turbidity (NTU), fecal coliform bacteria (number of
colonies/100 milliliters), suspended residue (total suspended solids) (milligrams/Liter), ammonia
as nitrogen (milligrams/Liter), total Kjeldahl nitrogen (milligrams/Liter), nitrite and nitrate as
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nitrogen (milligrams/Liter), total phosphorus (milligrams/Liter), and assorted metals. Physical
water parameters have also been collected by Mr. Riggsbee as part of his doctorate research
and additional data are also available from the Upper Cape Fear River Basin Association. A
combination of these three sources will provide acceptable coverage of physical water
chemistry and parameters throughout mitigation and monitoring activities.
Restoration Systems intends to expand and compliment the AMS data by deploying a YSI 6600:
Multi-Parameter "Sonde" from the Highway 42 bridge. The sonde is a sophisticated water
quality measuring tool. The sonde contains fully integrated sensors that measure water quantity
and water quality utilizing advanced technologies. This powerful instrument has the capability to
measure DO, conductivity, temperature, pH, oxidation-reduction potential, pressure, velocity,
direction, turbidity, chlorophyll, rhodamine, chloride, ammonia, and nitrate along with calculated
parameters such as specific conductance and salinity.
6.2 SUCCESS CRITERIA
The benefit of the proposed dam removal to the ecological integrity of the Deep River will be
measured against criteria developed through interagency coordination and contained within
written guidance titled "Determining Appropriate Compensatory Mitigation Credit for Dam
Removal Projects; Version 4.0 March 22, 2004" or subsequent revisions. The guidance
requires improvement in a minimum of two of four general criteria, while the Deep River
Mitigation Bank will be monitored to document improvements in three (water quality, rare
species, and aquatic community) of the four total general criteria. Available credit resulting from
this project is equal to 70-percent of the total impounded feet (90,494 feet of credit from 129,282
total impounded feet). Additional credit may be derived from two human related bonus factors,
which do not have success criteria. These bonus factors are described in greater detail in
Section 7.2.2. The fourth general criterion, restoration of anadromous fish passage, is not
currently possible due to additional dams downstream that impede migration upstream to the
Site impoundment. For this project, monitored post-removal conditions will be compared to the
pre-project data to identify improvements in desirable water quality parameters, restoration of
habitat for the federally endangered Cape Fear, shiner (Notropis mekistocholas), or a
quantitative improvement in species or feeding guild diversity for benthic macroinvertebrates.
The remaining monitoring data (river geomorphology, riparian vegetation recruitment, sediment
transport) will not be used as success criteria by themselves, but will supplement other collected
data to evaluate the success of the water quality, endangered species, or aquatic habitat
criteria. Additionally, negotiation is underway with several major landowners adjacent to the
Site impoundment to preserve riparian buffers, but complete coverage of riparian buffers for the
project neither practicable nor required for the Deep River Mitigation Bank to be successful.
' 6.3 REMEDIATION STRATEGY
If success monitoring strategies suggest that the proposed project has been unsuccessful for a
monitored criterion, subsequent remediation will likely be difficult due to the large size of the Site
impoundment and Site access. Remediation activities, which may include channel modification
and vegetating exposed banks, are not practicable due to inaccessibility of the entire
impoundment to heavy equipment and difficulty in diverting the river to provide stable working
conditions. Mitigation credit ratios for this project will be determined assuming that the project
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Deep River Mitigation Bank Prospectus Restoration Systems, LLC
r
provides improvements to two general criteria with limited (between 5- and 24-percent of banks
with 300-foot buffers) riparian buffers. Should post-removal monitoring indicate that two criteria
are not met, credit ratios may be adjusted, according to interagency guidance described within
interagency guidance titled "Determining Appropriate Compensatory Mitigation Credit for Dam
Removal Projects; Version 4.0 March 22, 2004" or subsequent revisions.

t
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7.0 MITIGATION BANK DETAILS
7.1 ANTICIPATED CUSTOMERS
There are two potential customers with public projects that require mitigation that could be
served through the removal of Carbonton Dam. The Ecosystem Enhancement Program (EEP)
has requested proposals for full delivery of 25,000 stream mitigation credits for Hydrologic Unit
03030003 of the Cape Fear River Basin, which contains the Site impoundment. These 25,000
credits are proposed to be released according to the existing MOA, establishing release
schedules for the EEP program. Additionally, Siler City is currently negotiating Section 404 and
Section 401 environmental permits for creating a drinking water reservoir for their residents, and
will require stream mitigation credits for the waters of the U.S. that will be impounded as a result
of their project. Siler City has expressed an interest in 9,800 stream restoration credits from the
Carbonton Dam removal. The remaining credits are proposed to be available through a
schedule of credit release from the Deep River Mitigation Bank. The credit release schedule is
provided in Section 7.2.
7.2 AVAILABLE CREDIT AND PROPOSED RELEASE
7.2.1 Credit Determination
Using Geographical Information Systems (GIS), a preliminary credit analysis was performed
using Light Detection and Ranging (LIDAR) derived Digital Elevation Model (DEM) with 20-foot
grid size to determine the length of impoundment within tributaries depicted as blue lines on the
USGS 7.5-minute quadrangle (Figure 6, Appendix A). The LIDAR collection techniques used
by the N.C. Floodplain Mapping Program do not penetrate water surfaces, and in-stream
channel information such as water depth and substrate profiles was not available. Floodplain
elevations adjacent to subject stream channels were used to detect the limits of impoundment
resulting from Carbonton Dam. The dam elevation is 226 feet above mean sea level, and a
floodplain contour of 236 feet above mean sea level corresponded with the limits of the Site
impoundment on the Deep River, which ends at the railroad bridge (Figure 3, Appendix A).
Following the 236 foot contour up McLendon's Creek and Big/Little Governor's Creek, the limits
of impoundment predicted through this analysis matched reasonably well with aerial
photography and USGS quadrangles (which show McLendon's being impounded to this same
point). For this analysis, only perennial streams that are indicated as blue line streams on the
USGS quadrangle were included. Credit was not calculated for smaller perennial and
intermittent streams that may exist but have not been identified due to the scale of the analysis.
Using this method, it has been determined that a total 129,282 linear feet of impounded waters
of the U.S. exist within the Site impoundment and adjacent tributaries (Figure 6, Appendix A).
As the project review process continues, it is intended that this credit estimate will be revised
upwards with the inclusion of the remaining tributaries that are candidates for credit. The
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Deep River Mitigation Bank Prospectus Restoration Systems,
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1

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available credit will be re-calculated using the same method, but will performed with high -bvJA5)f?a'
resolution (bare earth) LIDAR data that have 0.25 meter vertical accuracy. The LIDAR data for -?

this region of North Carolina are expected to become publicly available in early 2004. ?
-fir ;-,3
s
According to interagency guidance titled "Determining Appropriate Compensatory Mitigation J?
Credit for Dam Removal Projects; Version 4.0 March 22, 2004" or subsequent revisions
(Appendix C), the linear length of impoundment has been evaluated against the four general
criteria (water quality, protected species habitat, improved aquatic community, or anadromous
fish passage) and two bonus factors (human recreational or scientific value) for credit '01
determination to assess the possible available credit. The proposed project should restore, at
minimum, two of four general criteria, and may provide both bonus factors. Through re-
establishment of habitat for federally endangered Cape Fear shiner and general improvement to
the aquatic community (benthic macroinvertebrates), the monitored project will satisfy
?s
requirements to be eligible for minimum credit equal to 70-percent of the total impounded F
length. Additionally, significant progress has been made through easement negotiations to ire
create sections of protected buffers adjacent to the impoundment. This process is expected to U
continue throughout the life of the mitigation bank, and will involve non-profit organizations that
will assist in brokering the easement deals, as well as perpetual maintenance of the buffer 12
easements. Currently, land owner negotiations have resulted in potential easements that will
provide approximately 5-percent of the entire length of the impoundment with 300-foot wide
riparian buffers. The 143.9 acres of proposed riparian buffer easements currently do not
increase the amount of potential available credit.
Restoration Systems has received interest from river paddling enthusiasts and land
conservancies to renovate the dam removal and powerhouse footprint for use as a canoe and
kayak launching facility and rest point. The impoundment is also being used for research by
Wetzel and Riggsbee, with the scope of their research above and beyond the monitoring
protocols associated with bank success. These two bonus factors should result in an additional
20-percent of potential credit associated with this project, which result in 116,350 total feet of
mitigation credit that will become available through the establishment of the Deep River
Mitigation Bank.
7.2.2 Potential Credit
As discussed in Section 7.2.1, the total impounded length of streams associated with the project
is 129,282 linear feet. The project appears to be eligible for minimum credit equal to 70-percent
of the total impounded length, which suggests that 90,494 linear feet of stream mitigation credit
will be possible. from this project. Additionally, if the project is deemed eligible for the two
human value bonus factors are considered by regulatory agencies, another 20-percent of credit
will result in 116,350 linear feet of total stream mitigation credit may be possible.
7.2.3 Credit Release Schedule
The credit release for the proposed project is intended to follow one of two potential scenarios,
and credit values following these release schedules are detailed in Table 4.
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Deep River Mitigation Bank Prospectus Restoration Systems, LLC
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Scenario 1-Preferred
The stream mitigation required by EEP (25,000 linear feet) would be available according to
existing agreements and schedules (EEP-Memorandum Of Understanding and the Program
Consistency and Assessment Group) as allowed in "Determining Appropriate Compensatory
Mitigation Credit for Dam Removal Projects; Version 4.0 March 22, 2004" or subsequent
revisions (Appendix C). In the case of Siler City (9,800 linear feet), ACE and DWQ are
anticipated to recognize the implementation of the project as appropriate mitigation for stream
impacts as a permit specific condition of the town's Section 404 permit. All credit that remains
beyond the requirements of these two identified clients would be protected through the
generation of a Mitigation Banking Instrument and released from the Deep River Mitigation Bank
according to the credit release schedule provided in the interagency dam guidance (Appendix
C).
Scenario 2
The stream mitigation required by EEP (25,000 linear feet) would be available according to
existing agreements and schedules (EEP-Memorandum Of Understanding and the Program
Consistency and Assessment Group) as allowed in "Determining Appropriate Compensatory
Mitigation Credit for Dam Removal Projects; Version 4.0 March 22, 2004" or subsequent
revisions (Appendix C). The remaining mitigation would be banked as mitigation credits. It is
expected that the Siler City credit needs can be satisfied through the first construction related
credit release, according to the credit release schedule as outlined in "Determining Appropriate
Compensatory Mitigation Credit for Dam Removal Projects; Version 4.0 March 22, 2004" or
subsequent revisions (Appendix C).
7.3 PERPETUAL MAINTENANCE OF MITIGATION BANK
Restoration Systems has approached two qualified organizations, the Triangle Land
Conservancy and the North Carolina Wildlife Habitat Foundation, that have expressed interest
in accepting a conservation easement on the 5.499 acres of real estate. The easement would
prohibit, in perpetuity, development of the dam removal site inconsistent with ecological
conservation. The easement would prevent future reconstruction of a dam, as well as contain
additional land use restrictions that conform to the standards of the ACE and DWQ.
' Construction of a canoe access point on the footprint of the facility has been suggested by both
organizations and local paddling enthusiasts.
I 7.4 NON-PROJECT DEVELOPMENT SCENARIO
If the proposed dam removal does not occur, then use of the dam for generation of hydroelectric
power is anticipated until the dam structure deteriorates from age so that it is not longer feasible
to be used for power. The dam is already more that 80 years old, and will become a risk to life
and property if it continues to age while intact. The region surrounding the dam will likely
' continue to remain rural regardless of whether the dam is removed. The proposed project offers
substantial ecological improvement within the impoundment, and the rural region surrounding
the project may allow these benefits to maintained resulting in regional watershed
' improvements.
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Deep River Mitigation Bank Prospectus Restoration Systems, LLC
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7.5 DAM OWNERSHIP
The Carbonton Dam is currently owned by Michael R. Allen and Carbonton Hydroelectric, LLC.
The deed for the real estate is contained in Deed Book 839 page 37-39 of the Chatham County,
North Carolina Registrar of Deeds. Restoration Systems has an executed option to purchase
the 5.499 acres on which the dam is sited and the facility itself. The Option to Purchase is
provided in Appendix D.
7.6 CORPORATE EXPERIENCE
Restoration Systems L.L.C. is an environmental restoration, mitigation banking, and full-delivery
mitigation firm founded in 1998. Restoration Systems' staff has been involved in environmental
mitigation and mitigation banking issues since 1992. Project managers maintain 2.0 years of
experience in resource policy and mitigation implementation. Staff experience includes
establishment of the first mitigation bank developed in North Carolina solely for the N.C.
Department of Transportation (NCDOT) in 1997 (Barra Farms), and the largest full delivery
project ever developed for NCDOT (Neu-Con Umbrella Mitigation Bank).
Corporate experience includes successful development and completion of the Bear Creek-Mill
Branch Mitigation Bank as a full delivery project for NCDOT in 2001. The Bear Creek - Mill
Branch project comprises a fully permitted 445-acre wetland mitigation bank with credits
available. An additional 515 mitigation acres under contract to NCDOT as the Sleepy Creek
Mitigation Bank is under final permit review and will be constructed in July 2004.
Dam removal for mitigation, as proposed in this response, is an entirely new method of
achieving compensatory mitigation credit. Restoration Systems is prepared to make this project
a success through the use of good science and engineering practices with a goal of regional
watershed improvement.
8.0 JURISDICTIONAL TOPICS
8.1 WATERS OF THE UNITED STATES
The Site impoundment and associated tributaries are all subject to jurisdictional
consideration under Section 404 of the Clean Water Act as waters of the United States
(33 CFR Section 328.3). The Site impoundment may be classified as lacustrine,
limnetic system with an unconsolidated bottom dominated by cobble and gravel (L1UB1)
(Cowardin et al. 1979). Both upstream and downstream of the impoundment, the Deep
River may be classified as riverine, upper perennial with a rock bottom dominated by
rubble (R3RB2). It is anticipated that the Site impoundment will share the R3RB2
classification once restored. The named tributaries to the Site impoundment may be
classified as riverine, upper perennial systems with unconsolidated bottoms dominated
by cobble/gravel (R3UB1) upstream of the effect of the Carbonton Dam.
Vegetated wetlands are defined by the presence of three primary criteria: hydric soils,
hydrophytic vegetation, and evidence of hydrology at or near the surface for a portion
(12.5 percent) of the growing season (DOA 1987). The Site impoundment is currently
completely covered by open water. No additional wetlands occur within the
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Deep River Mitigation Bank Prospectus Restoration Systems, LLC
embankments of the Deep River since the impoundment does not extend into the
floodplain. Once the impoundment has been dewatered through dam removal, it is
possible that palustrine wetlands will persist on stream terraces within the main channel
of the Deep River, once the river level has dropped to non-impounded levels. These
potential wetlands would likely be classified as palustrine, forested, broad-leaved
deciduous, temporarily flooded (PF01A) systems considering the palustrine habitats
that occur within the reference reaches of the Deep River both upstream and
downstream of the Site impoundment. These wetlands may be maintained as they
emerge to establish collateral wetland credit from the project.
8.1.1 Agency Review
The Site impoundment was selected by Restoration Systems based on the conclusions of the
North Carolina Dam Removal Task Force (DRTF); consisting of the U.S. Army Corps of
Engineers (USACE), U.S. Fish and Wildlife Service (USFWS), N.C. Division of Water Quality
(NCDWQ), N.C. Wildlife Resources Commission (NCWRC), U.S. Environmental Protection
Agency (USEPA), National Marine Fisheries Service (NMFS), N.C. Division of Marine Fisheries
(NCDMF), N.C. Natural Heritage Program (NCNHP), N.C. Division of Coastal Management
(NCDCM), and N.C. Department of Transportation (NCDOT).
The DRTF has recommended large-scale dam removal as an appropriate and desirable form of
compensatory stream mitigation. Task Force participants were subsequently queried on the
relative ecological benefits of breeching specific problem dams in North Carolina (Table 1). The
Carbonton Dam is one the highest priority dams in North Carolina for which removal can provide
the highest ecological benefit. The other dams are the Lowell Dam on the Little River, Johnston
County, and the Cape Fear River Lock and Dams #2 and #3. These dams ranked higher than
any other dams in the state of North Carolina.
I

Due to the innovative approach to stream restoration that defines this project, Restoration
Systems has encouraged regulatory agency personnel to visit the Site impoundment prior to
submission of this Technical Response. Restoration Systems is devoted to providing feasible
projects that meet the mitigation needs of NCDOT, and it was deemed necessary to gain
feedback from regulatory agencies regarding the practicability of obtaining Section 404 and
Section 401 permits and stream restoration credit for the proposed dam removal activities.
Based upon scheduling conflicts of the attending parties, two separate boat trips were
undertaken to provide representatives of NCDWQ, USACE, and USFWS an opportunity to see
the dam and review the entire Site impoundment. Representatives John Dorney, David
Penrose, and Steven Mitchell of NCDWQ attended the March 26, 2003 visit, while John
Thomas, USACE, and Mike Wicker, USFWS, attended the April 29, 2003 visit. All agency
personnel expressed openness to the innovative approach presented in this Prospectus, and
Mr. John Dorney (NCDWQ) and Mr. Mike Wicker (USFWS) have provided a written evaluation
of the possibilities that this project provides (Appendix E). At this time, no red-flag issues that
would prevent further development of this project have been raised as concerns by the resource
agencies.
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Deep River Mitigation Bank Prospectus Restoration Systems, LLC
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DWQ field review USACE & USFWS field review
' 8.1.2 Permits
A final permitting strategy cannot be developed until removal techniques and construction
footprint have been determined and jurisdictional area impacts resulting from the dam removal
' are firmly quantified. However, permits will be required for encroachment into the waters of U.S.
at the dam site. Consideration will be given to the use of Nationwide Permit (NWP) #27 for
stream restoration activities. Impacts to jurisdictional areas will be allowed assuming "the
authorized work results in a net increase in aquatic resource functions and values in the project
area".
' Section 401 of the Clean Water Act requires each state to certify that state water quality
standards will not be violated for activities which 1) involve issuance of a federal permit or
' license or 2) require discharges into "waters of the United States." Application for 401 general
certification will be required. A Section 404 permit is not valid until 401 certification is issued.
' 8.2 RARE AND PROTECTED SPECIES
Some populations of fauna and flora have been in, or are in, the process of decline due to either
natural forces or their inability to coexist with human activities. Federal law (under the
' provisions of the Endangered Species Act of 1973, as amended) requires that any action, likely
to adversely affect a species classified as federally protected, be subject to review by the
USFWS. Other species may receive additional protection under separate state laws.
' 8.2.1 Federally Protected Species
Plants and animals with federal classifications of Endangered, Threatened, Proposed
' Endangered, and Proposed Threatened are protected under provisions of Sections 7 and 9 of
the Endangered Species Act of 1973, as amended. For Chatham, Lee, and Moore Counties,
the most up to date county lists are February 5, 2003, February 24, 2003, and September 9,
' 2002, respectively. The USFWS lists six federally protected species these counties (Table 5).
19
Deep River Mitigation Bank Prospectus Restoration Systems, LLC

Table 5. Federally Protected Species listed for Chatham, Lee, and Moore Counties
Common Name Scientific Name Status** County***
Bald eagle Haliaeetus leucocephalus T* C
Cape Fear shiner Notropis mekistocholas E C,L,M
Red-cockaded woodpecker Picoides borealis E C,L,M
Harperella Ptilimnium nodosum E C,L
American chaffseed Schwalbea americana E M
' Michaux's sumac Rhus michauxii E M
'Proposed for delisting
"Federal Status: E-Endangered; a taxon "in danger of extinction throughout all or a significant portion of its range;" T-Threatened;
a taxon "likely to become endangered within the foreseeable future throughout all or a significant portion of its range;" T (S/A) -
'
Threatened, due to similarity of appearance
'.*: C-Chatham, L-Lee, M-Moore
I Haliaeetus leucocephalus (Bald Eagle)
Threatened (Proposed for delisting)
' Family: Accipitridae
Date Listed: March 11, 1967
' The bald eagle is a large raptor with a wingspan greater than 6 feet. Adult bald eagles are dark
brown with a white head and tail. Immature eagles are brown with whitish mottling on the tail,
belly, and wing linings. Bald eagles typically feed on fish but may also take birds and small
mammals. In the Carolinas, nesting season extends from December through May (Potter et al.
1980). Bald eagles typically nest in tall, living trees in a conspicuous location near open water.
Eagles forage over large bodies of water and utilize adjacent trees for perching (Hamel 1992).
Disturbance activities within a primary zone extending 750 to 1500 feet from a nest tree are
considered to result in unacceptable conditions for eagles (FWS 1987). The USFWS
recommends avoiding disturbance activities, including construction and tree-cutting within this
' primary zone. Within a secondary zone, extending from the primary zone boundary out to a
distance of 1.0 mile from a nest tree, construction and land-clearing activities should be
restricted to the non-nesting period. The USFWS also recommends avoiding alteration of
' natural shorelines where bald eagles forage, and avoiding significant land-clearing activities
within 1500 feet of known roosting sites.
' There are no NCNHP records of the bald eagle occurring within the Site impoundment.
Although appropriate nesting and roosting habitat does occur within the mature forest adjacent
to the Site impoundment, these areas are not planned to be impacted by proposed construction
' activities. The dewatering of the Site impoundment is not likely to adversely affect the bald
eagle, since foraging habitat of the eagle will still be available within the restored Deep River.
' No impacts are anticipated to the bald eagle as a result of the proposed mitigation activities.
Notropis mekistocholas (Cape Fear Shiner) Endangered
Family: Cyprinidae
Date Listed: September 25, 1987

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Deep River Mitigation Bank Prospectus Restoration Systems, LLC

The Cape Fear shiner is a small (to 2 inches), moderately stocky minnow. It is pale silvery
' yellow with a black band along the sides and the moderate-sized eyes are located on the sides
of the head (USFWS 1988). This species is distinguished from all other Notropis by having a
coiled alimentary tract that is visible through the wall of the belly (Rohde et al. 1994). Food
items probably include bottom detritus, diatoms, and other periphytes (USFWS 1988). Habitat of
the Cape Fear shiner is generally slow pools, riffles, and runs over gravel, cobble, and boulders
(USFWS 1988). Little is known about the Cape Fear shiner's life history. Present distribution
(November 1988) includes portions of Randolph, Chatham, Lee, Moore, and Harnett Counties
(USFWS 1988). As of 10 December 1993, the N.C. Wildlife Resources Commission has
designated Critical Habitat for this species in the Deep River, from its confluence with the Haw
' River (on the Chatham/Lee County line) upstream to the Carbonton Dam near NC Route 42
bridge (also on the Chatham/Lee County line). 9vca? n_?l(1?
l.
One of the main benefits anticipated by the re ration of lotic flow to the Site impoundment is to
provide an additional 49,622 linear feet o otential habitat for the Cape Fear shiner. Once the
Carbonton Dam has been oved, ' 's anticipated that currently disjunct, known populations of
the shiner located both pstrea nd downstream of the Site impoundment will be able to the
restored reach of the Deep iver. The removal of the Carbonton Dam will allow these disjunct
populations to interbreed, and will be an important step to increase the genetic diversity and
available habitat required to facilitate the continued survival and recovery of the species. If
habitat is found to be successfully restored through habitat monitoring after dam removal, it may
be possible to extend the Critical Habitat for the shiner upstream to High Falls Dam in Moore
County.
Picoides borealis (Red-cockaded Woodpecker) Endangered
Family: Picidae
Date Listed: October 13, 1970
This small woodpecker (7 to 8.5 inches [18 to 22 cm] long) has a black head, prominent white
cheek patches, and a black-and-white barred back. Males often have red markings (cockades)
behind the eye, but the cockades may be absent or difficult to see (Potter et al. 1980). Primary
habitat consists of mature to over-mature southern pine forests dominated by loblolly (Pinus
taeda), long-leaf (P. palustris), slash (P. elliottii), and pond (P. serotina) pines (Thompson and
Baker 1971). Nest cavities are constructed in the heartwood of living pines, generally older than
70 years that have been infected with red-heart disease. Nest cavity trees tend to occur in
clusters, which are referred to as colonies (FWS 1985). The woodpecker drills holes into the
bark around the cavity entrance, resulting in a shiny, resinous buildup around the entrance that
allows for easy detection of active nest trees. Pine flatwoods or pine-dominated savannas
which have been maintained by frequent natural fires serve as ideal nesting and foraging sites
for this woodpecker. Development of a thick understory may result in abandonment of cavity
trees.
No suitable habitat for the red-cockaded woodpecker occurs within or adjacent to the Site
impoundment. Any areas dominated by pine trees are involved in timber management, and are
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Deep River Mitigation Bank Prospectus Restoration Systems, LLC
not left undisturbed for long enough to reach the age and size required by the woodpecker as
habitat. The proposed project will not affect the red-cockaded woodpecker.
Ptilimnium nodosum (Harperella) Endangered
' Family: Apiaceae
Date Listed: September 28, 1988
This species is a slender, annual herb which grows to 6 to 36 inches in height (Kral 1983). The
leaves are reduced to hollow, quill-like structures which are green, ribbed, and purplish-tinged
near the base. Flowers occur as umbels consisting of five regular parts and are bisexual or
unisexual, each umbel containing both perfect and male florets. Flowering begins in May in
populations occurring in ponds, while riverine populations may flower much later, beginning in
late June or July and continuing until frost (Kral 1983). In North Carolina Harperella typically
occurs on rocky or gravelly shoals of clear, swift-flowing streams.
Suitable habitat for Harperella currently does not exist in or adjacent to the Site impoundment.
The open water extends from bank to bank of the relict Deep River channel, and the banks are
steep with little habitat for plants or shrubs to grow. The low average flow regime of the Site
impoundment does not characterize the habitat conditions required by the species. Once the
dam has been removed, the restored Deep River will occur within the original channel and the
lotic flow regime will be more consistent with the habitat requirements of Harperella. Reference
sections of the Deep River located both upstream and downstream of the Site impoundment do
support rocky and gravelly shoals and river islands that are adjacent to flow and can be
characterized as appropriate habitat for Harperella. The proposed stream restoration project
may result in positive affect to Harperella.
Schwalbea americana (American Chaffseed) Endangered
Family: Scrophulariaceae
Date Listed: September 29, 1992
Chaffseed is a perennial pubescent herb that stands 12-24 inches tall. It is semi-parasitic,
without host specificity. The alternately-leaved plant is erect and simple, or branched only at the
base. The fleshy leaves are lanceolate, sessile, yellow-green or dull green with red undertones,
and become smaller and narrower from the base of the plant to the top (Kral 1983). Flowers are
purplish-yellow, tubular, bilaterally symmetrical and showy. They are arranged on a spike-like
terminal raceme and bloom from April to June. The fruit is a narrow capsule approximately 0.5
inches long which matures in early summer. Seeds are enclosed in a sac-like structure that
provides the common name. American chaffseed occurs in open grass/sedge assemblages
with seasonally moist to dry acidic sandy loams or sandy peat loams. These assemblages
typically exist in moist pine flatwoods, savannas, bog borders, and open oak woods. In North
Carolina, most documented occurrences are at Fort Bragg, in frequently burned impact zones.
These areas consist of pine/scrub oak sandhills, pine savannas, and ecotones of streamhead
pocosins. Frequent fires maintain a strong dominance and high diversity of herbs in what were
historically fire-dominated communities (FWS 1995). No suitable- habitat for American
chaffseed occurs in or near the Site impoundment. The proposed project will not affect the
American chaffseed.
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Deep River Mitigation Bank Prospectus Restoration Systems, LLC

Rhus michauxii (Michaux's Sumac) Endangered
Family: Anacardiaceae
Date Listed: September 28, 1989
' Michaux's sumac is a densely pubescent, deciduous, rhizomatous shrub, usually less than 2
feet high. The alternate, compound leaves consist of 9 to 13 hairy, round-based, toothed
' leaflets borne on a hairy rachis that may be slightly winged (Radford et al. 1968). Small male
and female flowers are produced during June on separate plants; female flowers are produced
on terminal, erect clusters followed by small, hairy, red fruits (drupes) in August and September.
' Michaux's sumac tends to grow in disturbed areas where competition is reduced by periodic fire
or other disturbances, and may grow along roadside margins or utility right-of-ways. In the
Piedmont, Michaux's sumac appears to prefer clay soil derived from mafic rocks or sandy soil
' derived from granite; in the Sandhills, it prefers loamy swales (Weakley 1993). Michaux's
sumac ranges from south Virginia through Georgia in the inner Coastal Plain and lower
Piedmont.
' No suitable habitat for Michaux's sumac occurs in or near the Site impoundment. The proposed
project will not affect the Michaux's sumac.
' 8.2.2 Federal Species of Concern
There are eighteen Federal Species of Concern (FSC) listed by the USFWS for Chatham, Lee,
' and Moore Counties, North Carolina. Federal species of concern are not afforded federal
protection under the Endangered Species Act of 1973, as amended, and are not subject to any
of its provisions, including Section 7, until they are formally proposed or listed as Threatened or
' Endangered. An FSC is defined as a species that is under consideration for listing for which
there is insufficient information to support listing. In addition, FSCs which are listed as
' Endangered (E), Threatened (T), or Special Concern (SC) by the NCNHP list of Rare Plant and
Animal Species are afforded state protection under the N.C. State Endangered Species Act and
the N.C. Plant Protection and Conservation Act of 1979, as amended. Table 6 summarizes
' federal species of concern listed for Chatham, Lee, and Moore Counties that are protected by
the state.

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Deep River Mitigation Bank Prospectus Restoration Systems, LLC

Table 6. Federal Species of Concern
Common Name Scientific Name Potential
Habitat State
Status****
Bachman's sparrow Aimophila aestivalis No Sc
"Carolina" redhorse Moxostoma sp. 2 Yes** SR (PE)
Robust redhorse Moxostoma robustum Yes SR (PE)
Carolina darter Etheostoma collis pop 2 Yes SC
Pinewoods darter Etheostoma manae Yes* Sc
Sandhills chub Semotilus lumbee Yes* Sc
Northern pinesnake Pituophis melanoleucus melanoleucus No Sc
Southern Hognose Snake Heterodon simus No Sc
Atlantic pigtoe Fusconaia masoni Yes* E
Brook Floater Alasmidonta varicosa Yes* E
Yellow lampmussel Lampsilis cariosa Yes* E
Carolina creekshell Villosa vaughaniana Yes* E
Septima's clubtail dragonfly Gomphus septima No SR
Sandhills clubtail dragonfly Gomphus parvidens carolinus No SR
Arogos skipper Atrytone arogos arogos No SR
Buttercup phacelia Phacelia covillei No SR-T
Virginia quillwort Isoetes virginica Yes SR-L
Bog spicebush Lindera subcoriacea No E
Georgia indigo-bush Amorpha eorgiana var. georgiana No E
Sandhills bog lilly Lilium iridollae No SR-L
Alabama beaksedge Rhynchospora crinipes No E
Bog oatgrass Danthonia epilis No SR-T
Conferva pondweed Potamogeton confervoides Yes SR-D
Heller's trefoil Lotus helleri No SR-T
Pickering's dawnflower Stylisma pickeringii var. pickeringii No E
Roughleaf yellow-eyed grass Xyris scabrifolia No SR-T
Sandhills milkvetch Astragalus michauxii No T
Sandhills pyxie-moss Pyxidanthera barbulata var. brevistyla No E
Spring-flowering goldenrod Solidago verna No SR-L
Sun-facing coneflower Rudbeckia heliopsidis No E***
Venus flytrap Dionea muscipula No SR-L,
SC***
t 'Potential Habitat: The Site impoundment does not currently offer habitat, but the restored Deep River and associated terrace may.
" The Carolina redhorse has been collected within the Site impoundment.
"' Historic record - the species has not been observed in one of the counties within the last 20 years
""State Status: E = Endangered; T = Threatened; SR = Significantly Rare; SC = Special Concern; W5A = Watch list, category 5A
' (rare because of significant decline); -L=limited to North Carolina and adjacent states (endemic or near endemic); D = disjunct
population; T = throughout (these species are rare throughout their ranges [fewer than 100 populations total]) (Amoroso 2002;
LeGrand and Hall 2001).
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1 Deep River Mitigation Bank Prospectus Restoration Systems, LLC
REFERENCES
' Amoroso, J.L. 2002. Natural Heritage Program List of the Rare Plant Species of North
Carolina. North Carolina Natural Heritage Program. Raleigh, N.C.
' Cowardin, Lewis M., V. Carter, F.C. Golet, and E.T. LaRoe. 1979. Classifications of Wetlands
and Deepwater Habitats of the United States. U.S. Fish and Wildlife Service. U.S.
' Government Printing Office, Washington D.C.
Department of the Army (DOA). 1987. Corps of Engineers Wetlands Delineation Manual.
' Technical Report Y-87-1. US Army Engineer Waterways Experiment Station, Vicksburg,
MS.
' Fish and Wildlife Service (FWS). 1985. Red-cockaded Woodpecker Recovery Plan. U.S.
Department of the Interior, Southeast Region, Atlanta, Georgia. 88 pp.
' Fish and Wildlife Service (FWS). 1987. Habitat Management Guidelines for the Bald Eagle in
the Southeast Region. U.S. Department of the Interior, Fish and Wildlife Service. 8 pp.
' Fish and Wildlife Service (FWS). 1988. Cape Fear Shiner Recovery Plan. U.S. Fish and
Wildlife Service, Atlanta, GA. 18 pp.
' Fish and Wildlife Service (FWS). 1995. American Chaffseed (Schwalbea americana) Recovery
Plan. Hadley, MA. 66pp.
' Griffith, G.E., Omernik, J.M., Comstock, J.A., Schafale, M.P., McNab, W.H., Lenat, D.R.,
MacPherson, T.F., Glover, J.B., and Shelburne, V.B.. 2002. Ecoregions of North
Carolina and South Carolina, (color poster with map,, descriptive text, summary tables,
I and photographs): Reston, Virginia, U.S. Geological Survey (map scale 1:1,500,000).
' Hamel, P.B. 1992. Land Manager's Guide to the Birds of the South. The Nature Conservancy,
Southeastern Region, Chapel Hill, NC. 437 pp.
Kral, R. 1983. Ptilimnium nodosum paper #258 IN: Endangered and threatened plant species of
i the southeastern United States. U.S. Department of Agriculture, Forest Service General
Report SA-GA-7.
' LeGrand, Jr., H.E. and S.P. Hall. 2001. Natural Heritage Program List of the Rare Animal
Species of North Carolina. North Carolina Natural Heritage Program. Raleigh, N.C.
' North Carolina Division of Water Quality (NCDWQ). 2000. Basinwide Assessment Report:
Cape Fear River. Department of Environment, Health and Natural Resources. Raleigh,
N.C.
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Deep River Mitigation Bank Prospectus Restoration Systems, LLC
' North Carolina Division of Water Quality (NCDWQ). 2001. Standard Operating Procedures for
Benthic Macroinvertebrates. Biological Assessment Unit, Department of Environment,
' Health and Natural Resources. Raleigh, N.C.
North Carolina Division of Water Quality (NCDWQ). 1996. Basinwide Assessment Report:
I Cape Fear River. Department of Environment, Health and Natural Resources. Raleigh,
N.C.
Potter, E.F., J.F. Parnell, and R.P. Teulings. 1980. Birds of the Carolinas. The University of
North Carolina Press, Chapel Hill, NC. 408 pp.
Radford, A.E., H.E. Ahles and G.R. Bell. 1968. Manual of the Vascular Flora of the Carolinas.
Chapel Hill, The University of North Carolina Press.
Repair Evaluation Maintainence Rehabilition Research Program (REMR). 1994. Concrete
removal techniques. REMR Technical Note CS-MR-I .14 website citation.
htti)://www.wes.army.mil/REMR/Pdf/cs/mr-1-14.pdf. United States Army Corps of
Engineers Waterways Experiment Station. Vicksburg, Mississippi.
Rohde, C., Arndt, G., Lindquist, G., and Parnell, F. 1994. Freshwater Fishes of the Carolinas,
Virginia, Maryland, and Delaware. Chapel Hill, The University of North Carolina Press.
Rosgen, D. 1996. Applied River Morphology. Wildland Hydrology (Publisher). Pagosa
Springs, Colorado
Thompson, R.L. and W.W. Baker. 1971. A survey of red-cockaded woodpeckers nesting
habitat requirements (pp. 170-186). In R.L. Thompson ed., The Ecology and
Management of the Red-cockaded Woodpecker. Tall Timbers Research Station,
Tallahassee, FL.
Weakley, A. S. 1993. Guide to the Flora of the Carolinas and Virginia. Working Draft of
November 1993. North Carolina Natural Heritage Program, Division of Parks and
Recreation, Department of Environment, Health, and Natural Resources. 575 pp.
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Deep River Mitigation Bank Prospectus Restoration Systems, LLC
C
APPENDIX A
FIGURES AND TABLES

C

i
L�
Sanford --� ►
Carbonton f
4 CHATH O
r° MOORE 7 \`
4eeQ
fr
J SO
' 3 0 3 E Miles -
Hos
aid
1
'Wmon
r
;✓LA"t
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- .� . Q� � pf ' • f ,akc �—�
7, f +
C .f
r
'
' Site Location FIGURE Drawn By: Date:
MTC March 2004
Deep River Mitigation Bank Chkd By: Project No:
'Lee, Chatham, and Moore APS 03-168
Counties, North Carolina SCALE:
' EcoScience AS SHOWN

i-
lem
Greensboro 4
Whifi
e ?11I '`rr s
Oo 11 q
Jar
4 g oint GUILFORD
b?
ill ? o
Ra r y
wit Silet Cit Pitts
ache HATHAM`?
Den OLPH
Carbonton Dam Impoundment,
_. ,., ,. . _.. Gold4i?n
ortibn
1r
r, B.
s
1 (be
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t,Y Bs
n Cart
Legend
1 ' ] Mitigation Service Area r OGRE
Carbonton Dam Site Whisperin Pip
Major Rivers Ta t ° e °
1 P• ? ?
i
E
'I
S it
. 1111
Hill
ly?
HIII
River Basins
River Subbasins in Fo g ' u Spnng
0 Countylines Aber
1 -] Major Cities Pine
Mitigation Service Area Drawn By: MTC
coscicr.cL Deep River Mitigation Bank , FIGURE
Chatham, Lee, and Moore Counties, Chkd By: GRM
Corporation -- - - --- --
North Carolina
- Raleigh, North Carolina Date: March 20041,
8 0 8 16 Miles - ---- -- -
II Project: 03-150
EcoSdence
Stream Restoration Corridor
Deep River Mitigation Bank
Chatham, Lee, and Moore Counties, North Carolina
Drawn By: (Date:
MTC March 2004
Chkd By: (Project No:
APS 03-168_
SCALE: FIGURE
AS SHOWN, 3

4a r,IfA ? `"s ,?
400 0 400 800 1200 1600 2000 2400 2800 3200 Feet
t, •?,I t? ycy ?•, , -
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Aerial View of Site Impoundment MTC , March 2004
[Chkd BY: APSProJject No:
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FcnScience II North Carolina i 1

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APPENDIX B
RESEARCH PROPOSAL
DR. WETZEL AND ADAM RIGGSBEE

I Dam Removal. Sediment Transport, Plant Colonization, and Riparian Wetland
Restoration
Robert G. Wetzel
Adam Riggsbee
Department of Environmental Sciences and Engineering
University of North Carolina
Chapel Hill, NC 27599-7431
Introduction - Stream habitat restoration has recently expanded markedly by removal of small,
' relatively obsolete dams. Although dam removal is increasing as a strategy'for restoration of
certain aquatic ecosystems, ecological effects of this action are many, often unclear and poorly
understood, particularly in the long-term. For example, many believe that following dam removal
' the river course is restored within the formerly impounded area and that river reaches revert, in
part, to more natural forms regulated by fluctuations in hydrology and sediment transport (Heinz
Center 2002). Many other ecological aspects of dam removal are unknown quantitatively.
' "Scientific evaluations of these [dam] removals are almost nonexistent" (Heinz Center 2002).
With the increasing number of dam removals in the United States, both the need and opportunity
emerges for scientific investigation into many fundamental ecological impacts of dam removals.
' In particular is a need to understand major factors regulating the rates of habitat recovery.
As impounded water is lowered with dam removal, erosion of the massive accumulations of
' sediment downstream is a major concern not only for obvious habitat modification but also for
biogeochemical cycling of nutrients and altered exchange rates with overlying water.
Stabilization of the sediments as they are dewatered and desiccated upon exposure to the air
depends upon many interacting parameters, such as, precipitation intensity and frequency,
' upstream riparian vegetation and wetlands that ameliorate hydrographs, and the rapidity with
which the impoundment sediments are colonized by aggressive wetland and riparian vegetation.
The proposed research program addresses five primary objectives and integrated areas of
quantification, namely: (1) Quantify rates of sediment transport from the sediments of the former
impoundment to downstream reaches of the river; (2) Quantify the rates of wetland and riparian
' plant colonization of the lateral sediments; (3) Determine experimentally the stabilization effects
of colonizing wetland vegetation on sediment retention; (4) Determine the effects of colonizing
vegetation on nutrient export (N, P) from the dewatering sediments, and determine nutrient
' uptake lengths downstream; (5) Use Geographic Information System (GIS) technologies to
develop cartographic models to follow sediment distributions, plant colonization rates, and
predict the collective effects of dam removal on riparian wetland systems.
Methods - Sediment transport can be quantified using remote sensing data throughout the dam
removal process and dewatering/plant colonization process of the impoundment. Surface area
changes over time will be determined by converting remote sensing data into digital elevation
models (DEM). Bounded (e.g., by corrugated fiberglass sheeting) experimental transects within
the lateral riparian sediments- will be used to examine both rates of plant colonization and effects
of the vegetation on sediment retention under different flow conditions by comparison to
transects where colonization by vegetation is prevented. Sediment losses from these
experimental devices, as well as from different areas of the former impoundment, will be
quantified by sediment trapping. Changes in dissolved oxygen of the water, responding to
sediment loadings of organic matter and bacterial metabolism (cf. Wetzel 2001), and turbidity
will be measured among predetermined points upstream, within, and downstream of the
impoundment, as well as at the experimental transect outlets.
01/3)103 Wetzel - 1

Plant colonization rates will be quantified with biomass measurements of above-ground tissues
among individual species and of below-ground rooting tissues contained in sediment core.
samples (procedures following those of Wetzel and Howe 1999 and Wetzel and Likens 2000).
Cores will be collected along predetermined transects over time. Sampling regimes will consist
of weekly intervals during pre-breaching, post-breaching/pre-removal, and post-removal of the
dam.
Nutrient export quantifications will be determined by sampling each vegetative transect, as well
as reference samples upstream, for dissolved species of N and P. A downstream sampling regime
will be established to determine the distance of travel for the dissolved and particulate nutrients
released by the dam removal.
' Models have been developed to predict floodplain inundation and monitoring of forested
wetlands after flow regime changes from dammed water releases (Townsend and Walsh 1998,
2001). In the proposed study, a GIS cartographic site-suitability model will be designed to
predict the effects of dam removal on riparian wetlands both upstream and downstream DEMs
will be generated with remote sensing data and combined with soil and hydrographic data sets.
Analyses will be performed to locate areas that are most likely to foster wetland habitat and
promote sediment stability. Sites identified as potential wetlands will be investigated for present
'I colonization, or if they historically served as wetland habitat, by pre-dam aerial photography to
determine plant community types and contemporary core sampling to determine historical
habitats. Once the dam has been breached, potential wetlands will be monitored continuously
with remote sensing data for soil moisture content and plant community succession. Field
verifications will be made to ensure accuracy of remote sensing data interpretation.
Anticipated Benefits - Habitat restoration has developed into an appreciable industry as a result
of environmental mitigation regulations (NEPA, SEPA and the Clean Water Act). Mitigation
was designed to reduce the net loss of aquatic systems by encouraging preservation and
' restoration of aquatic habitats. Two fundamental goals of restoration are to reestablish key
ecological functions and foster biological integrity. In recent years, dam removals offer multiple
opportunities for river, floodplain, and wetland restoration. Research of the nature proposed here
' will contribute to the growing body of ecological understanding of dam removals. In addition,
the studies will provide monitoring data on the rapidity of restoration of key environmental
parameters that can be extrapolated to regional dam removal projects, such as Cherry and Quaker
Neck reservoirs. The studies will also provide supporting habitat restoration data for other
projects addressing recovery of fish populations post-dam removal. Finally, the detailed analyses
can offer tools for regulators, stake holders, and scientists to help prioritize and approve removals
for restoration purposes.
References
Heinz Center, The. 2002. Dam Removal: Science and Decision Making. The H. John Heinz III
Center for Science, Economics and the Environment. Washington D.C.
Townsend, P. A. and S. J. Walsh. 1998. Modeling floodplain inundation using an integrated GIS
with radar and optical remote sensing. Geomorphology 21:295-312.
Townsend, P. A. and S. J. Walsh. 2001. Remote sensing of forested wetlands: Application of
multitemporal and multispectral satellite imagery to determine plant community
composition and structure in southeastern USA. Plant Ecology 157:129-149.
01131/03 Wetzel - 2
t
Wetzel, R. G. 2001. Limnology: Lake and River Ecosystems. 3rd Edition. Academic Press, San
Diego. 1006 pp.
Wetzel, R. G. and M. J. Howe.. 1999. High production in a herbaceous perennial plant achieved
by continuous growth and synchronized population dynamics. Aquatic Botany 64:111-
129.
Wetzel, R. G. and G. E. Likens. 2000. Limnological Analyses. 3rd Edition. Springer-Verlag
Publishers, New York. 421 pp.
0181/03 Wetzel - 3

0

fl

APPENDIX C
AGENCY GUIDANCE

C
DETERMINING APPROPRIATE COMPENSATORY MITIGATION CREDIT FOR DAM
REMOVAL PROJECTS, VERSION 4.0
MARCH 22, 2004

11

Determining Appropriate Compensatory Mitigation Credit for
Dam Removal Projects
Developed cooperatively by US Army Corps of Engineers
(COE), Wilmington District, US Fish and Wildlife Service
(Service), US Environmental Protection Agency (EPA), Region
IV, NC Division of Water Quality (DWQ), and NC Wildlife
Resources Commission (WRC)
Version-4.0
March 22, 2004
Although dam removal projects would be expected to
result in the restoration of natural stream systems that
had been previously impacted, there is no established
procedure to identify when and how dam removal can be
utilized as compensatory mitigation for loss of streams and
stream functions due to permitted development projects.
The following guidance has been prepared to address these
issues and is intended to provide the regulated community
of North Carolina with joint and consistent District and
DWQ Guidance.
The intent of this guidance is to provide a consistent
' method to determine mitigation credit derived from
appropriate dam removal projects across the state.

This guidance is intended to apply to the removal of
larger dams. Removal of smaller dams (generally involving
impoundments of 10 acres of surface area or less) may
provide project specific compensatory mitigation
opportunities, utilizing channel restoration that follows
the typical natural channel design methods. The DWQ will
use this guidance as a working policy. The Wilmington
District also intends to use this guidance, but will do so
only after the Corps follows its normal public interest
review process, which provides for opportunity for public
notice and comment. These guidelines should not be
construed as affecting the applicability of the Clean Water
Act (CWA) 404 (b)(1) Guidelines, found at 40 CFR Part 230,
the Memorandum of Agreement between the Environmental
Protection Agency and the Department of the Army (DA)
concerning the Determination of Mitigation Under the Clean
Water Act Section 404(b)(1) Guidelines, or the review
process outlined in DWQ's rules (15A NCAC 2H.0506).
Although the agencies believe that there is benefit in
dam removal projects, use of dam removal projects as

compensatory mitigation should be used cautiously and on a
limited basis until a better understanding of the benefits
and consequences of dam removal projects is gained. It is
anticipated that this guidance will be subject to periodic
review and revision based on the review and monitoring of
these projects. This guidance relates to dam removal
' projects only and is not intended to address other types of
potential compensatory stream mitigation projects.
Debit/Credit Process
All considerations for compensatory mitigation credit
' for dam removal should be evaluated through the mitigation
bank process involving a Mitigation Bank Review Team (MBRT)
and subsequent execution of a Mitigation Banking Instrument
' (MBI). For proposals by the Ecosystem Enhancement Program
(EEP), evaluation will be done by the EEP Program
Assessment and Consistency Group (PACG) in accordance with
' the EEP Memorandum of Agreement (MOA). It is expected that
all proposals will be adequately described in a planning
' document that is subject to review and approval by the
appropriate agencies. Once it has been determined that a
project may proceed under these guidelines, specific DA
permit requirements for removal of the dam and any
' associated structures will be determined by the U.S. Army
Corps of Engineers.
' I. General criteria that will be considered when
determining mitigation credit.
' A. Water quality issues: Documented impairments to
water quality in the impoundment that would be
alleviated by removal of the dam. These include
' low dissolved oxygen levels, elevated
temperatures (especially for trout or cool water
ecosystems), elevated chlorophyll a, nutrient or
toxicant levels or downstream flow interruptions.
Other considerations include listing of the
waterbody on the state's 303(d) list, or known,
repeated violations of water quality standards,
or High Quality Water (HQW) or Outstanding
Resource Water (ORW) classification above or
below the dam.
' B. Rare, endangered and threatened aquatic
species: State or Federally listed rare,
endangered or threatened aquatic species that are

' likely to colonize the restored stream reach.
Long-term monitoring (beyond 5 years) may be
needed in order to demonstrate that this
criterion has been met. If monitoring fails to
demonstrate suitable habitat improvements or the
presence of appropriate species, as described in
' the approved mitigation plan, then credit amount
and/or release of future credits may be adjusted.
In some instances, reintroduction of species by
' the appropriate agencies may be done in
conjunction with the project.
' C. Establishment of an appropriate aquatic
community: Removal of the dam may result in the
' restoration of the appropriate aquatic community.
Success criteria for this category may be based
upon a demonstrated improvement of water quality
' from "good" to "Very Good" within the monitoring
period. Use of DWQ's Benthic Macroinvertebrate
stream rating system or similar metrics may be
' used to measure this criterion. Finally,
restoration of non-anadromous fish use (such as
Darters) may also receive mitigation credit on a
case-by-case basis. The credit would be based
' upon documentation of restoration of the
fragmented aquatic habitat.
' D. Anadromous fish passage: Documented re-
establishment of anadromous fish use of streams
upstream of the removed dam. If monitoring fails
' to demonstrate the presence of anadromous
species, as described in the approved mitigation
plan, then credit amount and/or release of future
' credits may be adjusted accordingly. In some,
but not all cases, the applicant may be credited
at a ratio of 5:1 for this criterion. However,
' the final decision will be determined as outlined
in the Debit/Credit Process.
' When reviewing projects pertaining to either
endangered/threatened species and/or anadromous
' fish criteria, the MBRT and/or PACG will solicit
the expertise of the appropriate Federal agency
(USFWS) and/or the National Marine Fisheries
' Service (NMFS) for federally listed species and
the NCWRC and/or the North Carolina Division of
Marine Fisheries (NCDMF) for state listed species

' to determine the viability of the restoration of
endangered or threatened species and/or their
' habitat or anadromous fish of the project and
will provide feedback with regard to the
monitoring and the success criteria established
' by the project proponent.
II. Additional site-specific factors that may be
t considered during the review of dam removal projects for
mitigation credits
' A. Wooded buffers: Although wooded buffers are less
critical for temperature control, aquatic food
chain support and physical stability on larger
rivers, this guidance recognizes the benefits
that wooded buffers provide and encourages their
establishment, where possible. More favorable
' mitigation credits will be supported where fully
protected, wooded buffers (planted or otherwise
protected) are established on both sides of the
' waterbody. Buffers of at least 50 feet (30 feet
in the mountains) are needed for water quality
benefits while buffers up to 300 feet wide are
' often cited as valuable for wildlife habitat and
corridors or where threatened or endangered
species are present. The provision of wooded
' buffers will be treated as a significant factor
for the amount of credit available from the site
as described in Table 1.
B. Human values: If the project is designed to
provide direct human benefits including
' recreational benefits (such as parks, trails,
marked canoe trails, boat access, and signage for
environmental education) or scientific research
' conducted beyond the required monitoring of the
project, then additional credit may be generated
as follows:
' An additional 20% bonus (with no more than
10% for each category and up to no more than the
maximum credit) could be available.
The purpose of this provision is to
' encourage dam removal applicants to provide these
additional benefits to the public from the dam
removal. These activities offered by the
4
' applicant may offset any negative local public
perception associated with the dam's removal, if
' any. The provision of new recreational
opportunities may also help offset any change in
existing recreational uses such as traditional
hunting or boating.
C. Calculation of compensatory mitigation for dam
' removal.
1. Selection of projects: Not all dam removal
' projects will be suitable for compensatory
mitigation. If the dam removal does not meet any
of the four general criteria listed above (e.g.,
' water quality issues in the lake, endangered and
threatened aquatic species, reestablishment of
improved aquatic life and/or anadromous fish
' passage), then it is unlikely that the Federal
and State agencies will support removal of the
dam as compensatory mitigation.
' 2. Maximum Potential Credit:
With the exception of III, below, the maximum
' potential credit (in linear feet) that may be
generated by a single project will be the length
of stream restored to flowing condition measured
' from the dam to the upstream edge of the normal
pool as indicated by the elevation of the crest
of the dam for run-of-river dams or the outfall,
' whichever is lower in elevation. Restoration of
flow in any perennial tributaries to the
impoundment may also be counted. Any
' intermittent streams that would no longer be
flooded may be credited at one-half of their
length. Alternatively, a functional habitat-based
' calculation may be used on a case-by-case basis
when the either the MBRT or the PACG agree that
such a calculation is appropriate. Regulatory
' agencies agree that such a calculation is
appropriate.
' 3. Credit for demonstrated downstream benefits:
A length of river immediately downstream of the
dam may exhibit aquatic life and stream bank
' stability benefits due to the restoration of
natural flows. Credit may be available for this
reach on a case-by-case basis based on monitoring
5
and evaluation by the appropriate agency review.
The pool removal credit and the downstream
benefit credit combine to establish the maximum
potential credit. The amount of available credit
associated from removal of the impoundment and
the downstream benefit credit will be determined
by either the MBRT or the PACG.
4. Baseline Mitigation Credit calculations:
To establish the baseline mitigation credit, the
maximum potential credit (as calculated above)
will be adjusted based on the number of general
criteria met and the length and width of any
buffer that is protected (via conservation
easement, etc.) adjacent to the restored stream.
If one criterion is met, 50% of the maximum
credit will be available. In the event that 2 or
3 of the criteria are met, then the maximum
credit will be 70%. Should all 4 criteria be
present, then 100% of the maximum credit will be
available. Furthermore, additional credit beyond
100% for buffer establishment and/or preservation
will be determined on a case-by-case basis.
Table 1. Adjustment of Baseline Mitigation Credit based on
the extent of protected buffers
Percent of
Corridor
Protected Average Width Divide
baseline
credit by
100 to 75% 50 to 150 feet 0.75
150 to 300 feet 0.70
74 to 50% 50 to 150 feet 0.85
150 to 300 feet 0.80
49 to 25% 50 to 150 feet 0.95
150 to 300 feet 0.90
24 to 0% 50 to 150 feet 1.0
150 to 300 feet 1.0
1 A minimum width of 30 feet can be substituted for the 50-foot
threshold for projects in the mountains.
2 Note that to facilitate calculation of buffer credits, the extent of
the pre-project perimeter of the impoundment is equivalent to 100% of
the buffer.
6

Only in exceptional cases, where sufficient
documentation exists, will the baseline credit be
increased to an amount that exceeds the maximum
credit as above referenced Section C II.
It is acknowledged that it may be difficult to
obtain easements (or other protective mechanisms)
from all landowners along a channel. In
addition, the acquisition and legal protection of
buffers may take several years. Project sponsors
are encouraged to propose what is likely to be
obtained when the plan is submitted for review.
Additional credit would be made available during
the monitoring period as additional buffer is
protected.
If these categories of buffer protection are not
available, adjustments may be made on a case-by-
case basis. These adjustments could be modified
if the protection efforts target areas with
special ecological functions and/or values that
are identified by conservation groups such as the
NC Natural Heritage Program. Areas that are
already protected by conservation easements or
public purchase can be utilized toward the
protected buffer percentages. Additional credit
may be provided on a case-by-case basis, if it is
determined that the buffers need to be planted.
Similarly, in river basins where DWQ administers
riparian buffer protection rules that protect the
wooded buffer, these credit multipliers would
likely be recalculated on a buffer width after
subtracting the area of the protected buffer.
5. Case-by-case process for unique situations:
The agencies acknowledge that there may be
unusual and unique dam removal scenarios (such as
provision of a buffer substantially larger than
suggested herein or removal of an urban dam with
on-site, watershed based stormwater management),
which will require additional flexibility and
extensive inter-agency coordination. In these
cases, a special Mitigation Banking Review Team
may need to be established to address these
scenarios.

D. Other factors to consider on a case-by-case basis
in the Debit/Credit Process:
1. Wetlands: Removal of some dams will result
in a net gain of wetland acreage while others
will result in a net decrease in wetland acreage.
A careful evaluation of the effect that the
removal of a dam would have on wetlands should be
made. This would involve considering wetland
functions, values, and eco-region context, as
well as possible restoration of these functions
prior to dam removal. Protection of any drained
wetland areas through conservation easements
would be helpful. Any net increase of wetland
acreage may be counted as wetland mitigation
credit while any net decrease could result in the
need for compensatory mitigation to offset those
impacts.
2. Sediment: The dam should be removed
gradually to lessen the downstream impact of any
accumulated sediment on downstream biota.
Preferably the site should be dewatered and the
dam gradually notched over a large portion of the
monitoring period. Other methods of gradually
lowering the water level will also be considered.
Fish and other aquatic moratoria may provide
useful guidance for the timing of dam removal.
Monitoring of sediment stability in newly exposed
stream banks will be necessary to determine if
temporary planting will be needed to control
erosion. If the sediments are believed to
contain toxicants such as heavy metals and toxic
organic chemicals, then testing will be needed
prior to removal of the dam. If levels of
toxicants are problematic, then management of
these sediments (including removal and
appropriate disposal) will be needed before dam
removal. However, if it is determined that the
release of those toxicants would be detrimental
to the aquatic environment, the MBRT or PACG may
exclude the project from further consideration.
3. Monitoring: The purpose of monitoring is to
document the projected benefits of the dam
removal, identify any problems encountered and
propose solutions, as well as, justify the amount
? 8
of credit and the credit release schedule for the
project. Monitoring of the biological, chemical
and physical effects of dam removal will be
required before, during, and after dam removal.
Annual reports to the relevant agencies are also
required. Action plans should then be
developed, approved by the permitting agencies
and implemented to address any problems found
during the monitoring period. Monitoring should
be done for five (5) years after the initiation
of dam removal with one year of pre-dam removal
monitoring to document baseline conditions.
Monitoring should consider fish and macrobenthos
monitoring, limited water chemistry monitoring,
as well as stream bank stability and
reestablishment of a stable channel within the
now-drained impoundment. Finally, the monitoring
plan must document how the project has resulted
in an improvement to any of the criteria upon
which the project was based. Existing data may
be useful in this regard. If monitoring doesn't
support the expected credits based on the
criteria listed above, then the number of credits
should be adjusted, as appropriate.
4. Remedial action: If problems are identified
before, during or after dam removal, a remedial
action plan must be developed which adequately
addresses these issues. For instance, if the
newly exposed stream banks are experiencing
erosion, then a temporary seeding of a non-
invasive annual plant may be needed until the
native vegetation can stabilize these sites.
Similarly, if downcutting occurs in the
tributaries to the dam, measures to stabilize
these streams may be necessary. Monitoring
programs must be designed to identify these (and
other) potential problems so they can be
addressed adequately. If active measures are
needed, then the use of natural channel design is
recommended.
5. Long-term protection of the dam site: The
dam site will need to be protected with a
conservation easement to ensure that construction
of a new dam will not occur. The extent of long-
term protection of the remainder of the restored
9
stream corridor will determine, in part, the
mitigation credits as outlined in the buffer
protection portions of this guidance.
6. Rare, threatened and endangered species:
Dam removal in habitat known to support state or
Federally listed rare, threatened or endangered
species must be coordinated with the appropriate
state and Federal agencies to ensure that
upstream and downstream habitat is not adversely
affected.
7. Exotic species: The upstream habitat should
be thoroughly surveyed to ensure that exotic
flora and fauna are not released downstream and
that exotic fauna do not invade the area of the
drained impoundment.
8.Downstream flow alteration: Following the
removal of a dam, possible downstream flow
alterations should be examined. Possible
alterations could include changes in the
regulated floodplain, alterations in the
downstream channel morphology and low flow
implications for wastewater dischargers.
' 9. Existing physical constraints: Existing
features such as roads parallel to the channel,
utilities or structures need to be considered
' with respect to the practical amount of buffer
that can be restored or protected. If some of
these features cannot be moved, then the maximum
' of possible buffer credit should be adjusted
accordingly.
' 10. Downstream flooding: In most situations, it
is likely that dam removal will have a negligible
effect on downstream flooding. However, if this
I factor is of concern to the public or the
agencies, then a modeling effort may be needed to
evaluate this factor.
' 11. Water Supply protection: It is unlikely
that dams will be approved for removal as
' compensatory mitigation if they are being
actively used as water supplies. In any event,
project proponents should check the
10

H

0

classification of the water to be certain that it
is not being used as a water supply.
E. Credit Release Schedule:
For dam removal projects when credit release schedules
are appropriate (i.e., mitigation banks), the agencies
propose to follow the recently agreed upon, joint
federal and state credit release schedule for stream
mitigation as outlined below. This schedule has been
modified slightly to reflect the definitional
differences between more typical stream mitigation and
dam removal since some provisions for stream
mitigation do not apply to dam removal projects.
Initial crediting: 150
Execution of MBI (where appropriate)
Approval of final mitigation plan
Delivery of financial assurances
Recordation of preservation mechanism
Construction release (initiation of gradual
dewatering of the lake): 10%
Upon initiation of initial physical and
biological monitoring (25% cumulative)
After year 1: 10% if a bankfull event has not
occurred; 20% if bankfull event has
occurred, if channel is stable and other
success criteria (if any) are met
(cumulative 35% and 45%). This assumes that
the project is satisfying the criteria upon
which it was based.
After year 2: 10% if first bankfull event
occurred in previous year or a bankfull
event does not occur in this year; 20% if
bankfull event has occurred and if the
restored stream channel is stable and other
success criteria (if any) are met
(cumulative 45% and 55%). This assumes that
the project continues to satisfy the
criteria upon which it was based.
After year 3: 10% or 20% (same as year 2)
(cumulative 55% to 65%). This assumes that
the project continues to satisfy the
criteria upon which it was based.
After year 4: 10% or 20% (same as year 2 and
year 3), (cumulative 65% to 75%). This
assumes that the project continues to
satisfy the criteria upon which it was
based.
11

' After year 5: 25% if at least one bankfull event
has occurred in the previous year(s). 35%
' if the first bankfull event occurs in year 5
and the agencies make a determination of
success as defined in the mitigation plan.
' This assumes that the project continues to
satisfy the criteria upon which it was
based.
The above release schedule is to be utilized as a
guideline, but can be modified by either the MBRT in the
' event that monitoring reveals that identified success
criteria are being met prior to the outlined release
schedule.
12

C
APPENDIX D
EXECUTED OPTION FOR CARBONTON DAM
1 ? ' OPTION TO PDR(3t4SE
7uis OFUON to 41?
MICHAEL R. AAT-LE1q PDRCSCASE (-Option") is granted this 41 day of May, 2003 by
RESTORATION SYSTEMS, LLC, a North Carolina limited liabilirv ....,...,a..? the "Seller".
11
Sella intending Seller's eirs, successors and assi in co dcration of the sum of the 'Buyer'.
uyer, rccepp o which is acknowledged, grants to 1thF u uyer (the "Option Money'? paid to Seller by
on to purchase all of that certain parcel of land, together with all improvements located ?1 on ?c?u v ? elusive right and the / 18Fy • Lee and the county of Chatham State of North Carolina, and money, °Pe?")' in the
follows: particularly described as
Street
Legal Description: See Exhibit attached hereto and ineor orated herein b reference,
terms and conditions set forth below: on the
1. Option Period This Option shall exist and continue from the date hereof until
day of 0 o'clock -L --M. on the
notice hereof should be recorded; and this first page of the Option (which Period-).
ExhibittA a
P the full legal nd theere erse side Guidelines) m ybe
recorded as a legaIly binding Notice of the Option. TIME IS OF THE ESSENCE WITH RESPECT TO THE OPTI
ER
ERCISE_ ON PERIOD AND
2. Exercise: At any time during the Option Period, Buyer may =efcise this Option by giving Seller a written notice thereof signed by the
Buyer, which exercise is effective upon (a) band delivery, (b) completed facsimile transmission, or (c) prepaid deposit of the notice with
an overnight commercial delivery service or in certified mail, return receipt requested, at the following address
Seller.
Mr. Micha Seller requests, but does not require, a copy be sent to:
el R Allen
P. O_ Box 1401
Burlington,.North Carolina 27216-1403
Phone: Fax: Phone:
Fax:
Aoc?j?TneF- t?cson f?s O Ttin., the teens of purchase and sale shall be as set Earth on the couplet tint
1°??j-+?+?°+ ??OCYATTON OF REALTORS
Standard Form No W such is attached as Exhibit A and incorporated herein by reference.
4. Application of Option Money: If this Option is exercised, the Option Money shall R
Price at closing. if this Option is not exercised, the Option Money shall be retined by Seiler shall not be applied to the purchase
5. Enrry:During the Option Period, Buyer and those reasonably designated by Buyer may, with reasonable advance notice to Seller, enter
the Property to inspect, survey and appraise the Property. Buyer shall be responsible for the r
during any such entry. epair of any damage done to the Property
6. Other Conditions:
IN VVTTNESS WHEREOF, Seller has hereunto set the Seller's hand and seal, or if Seller is a corporation, has caused this
insnunicnt ib be signed in its corporate name by its duly authorized officers and its seal to be hereunto affixed by authority of its Board of
Directors, the day and year first above written.
(Corporate Name) OS,,e ftc. By: President of . A llen
ATTEST:
Secretary (SEAL)
(I1,4PRESS CORPORATE SEAL)
(SEAL)
SEAL-STAMP NORTH CAROLINA, --{•:? COUNTY
I, a Notary Public of said State and County, certify that Michael R_ Allen and mouse,
personally appear before me this day and acknowledged the execution of the fore oin
?or seal, this
day of ors 3 8 msirurnen[ WitnessiF}iand official stamp
PS '-
M ```y? r. AY y???
My Commission Exnires-371- V ?rt L- r _ ?_ U / ?, ?_ •'
- = A-- IlaOUtY w
Notary Public • •
weiic
NORTH CAROLINA, COUNTY
-1101Nat-10
I, a Notary Public of said State and County, certify that
ay and acknowledged that (s)he is ? Secretary of personally appeared before me this
dul a corporation, and that by
liththori
tY y given and as the act of the corporation, the foregoing i,+sTM•.*.,ent was signed in its name by iu• President, sealed
its corporate seal and attested by him (her) as its Secretary. Vftness my hand and official stamp or seal, this day of
14Y Commission Expires:
Notary Public
Pi-POSE RFFt c i0 TF3 FcEvrKSt StD cJui0El 7NES FOR HELP III' COMPLELrN?....
1? Rqr A>:?nc•i:rinir• Form No P. 4!<1A

E MIBIT "Art
AGREEMENT FOR PURCHASE AND SALE
OF REAL PROPERTY -

TEIS AGREEMENT made this day of .
RESTORATION SYSTEMS, LLC, a North Carolina limited liabilit eom an byFand between
MICHAEL R. ALLEN ("Buyer"), and
("SeIler").
FOR AND IN CONSIDERATION OF THE MUTUAL PROMISES SET FORTH HEREIN AND OILER GOOD AND
VALUABLE CONSIDERATION, THE RECEIPT AND SUFFICIENCY OF WHICH ARE .HEREBY ACKNOWLEDGED,
THE PARTIES HERETO AGREE AS FOLLOWS:
Section 1. Terms and Definitions: The terms listed below shall have the respective meaning given them as set forth
adjacent to each term
(a) ^ProDeEbf - (Address) N/A
(Legal Description/Description) See Exhibit A attached hereto ted
herein b reference.
91 If this box is checked, "Property" shall mean that property described on Exhibit A attached hereto and incorporated
herewith by reference as if fully set forth herein, together with all buildings and improvements thereon and alt fixtures
and appurtenances thereto and all personal property, if any, itemized on Exhibit A.
S
{b) "Purchase Price" shall mean the sum of
Dollars,
payable on the following t erntr: .
(i) "Earnest Monev" shall mean
? THE EARNEST MONEY IS TO BE DEPOSITED IN ATi INTERF,ST BEARING
ACCOUNT, TO BE APPI D AS PART PAYhg' IT OF THE PURCHASE PRICE OF
THE PROPERTY AT THE TIME SALE IS CLOSED, OR DISBURSED AS AGREED
UPON UNDER THE PROVISIONS OF SECTION 9 HEIRIKI I.
(I OF
REALTOR' NORTH C-A ROLINT_4 4SSOCL4.TION' OF RI? A-LTORSO INC_
NCARFORM X580
Copyright 01999
?M
?° -????od applied as.part payment of the purchase price of the
Property at the time sate is closed, or disbursed as agreed upon under the provisions of Section
9 berein.

a
I $ (ii) Proceeds of a new Loan in the amount of
Dollars for a term of
years, at an interest rate not to exceed % per annum with mortgage loan
discount points not to exceed % of the loan amount; Buyer shall pay all costs
associated with any such loan.
iii) Deliverv of a i3romissorv note
said promissory note in the
amount o
payable over Mann Dollars being
Zwzcths in equal installments of

$ N/A
nncipal, together' with accrued interest on the outstandin principal balance at the rate of
Wall Street Journal s Prime Raze publish on the d? or to. the
IgnTf'IV ue one ea° Per annum, wi th?i st principal
payment/,.. a date of Closing. At any
time, the promissory note may be prepaid in whole or in part without penalty and without further
interest on the amounts prepaid from the date of such prepayment A partial prepayment will be
credited against the next installment of principal due.
(v) Assamotion of that unpaid obligation of Seller secured by a deed of trust on the
Property, such obligation having an outstanding principal balance of $
at the rate of
and evidenced by a note bearing interest
percent ( %) per annum, or
$ (v) Cash at closing in the amount o
-- -- ---- - Dollars, balance of Purchase Price.
(c) "aosin-" shall occur on or before thirty (30) days afrPr ,-?; ao „f rhP nn r, n
i
(d) "Broker(s)" shall mean:
None
Acting as: ? Seller's Agent; ? Dual Agent
("listing Agency"),
. ("listing Agent")
and None . ("Selling Agency")
("Selling Agent").
Acting as: ? Buyers Agent; ? Seller's(Sub) Agent; ? Dual Agent
(e) "E=mfnation Period" shall mean the period beginning on the date hereof and extending through N/A
or
(Z OF 6)
NCAR FORM 4-580
Copyright 01999
Rc fmn ¢om?:rx; hr F77r7IIi.LfT7.r?r+, . ? „ ?.,,, ?.; ,nT
M "Intended Use" shall mean the use of the Property for the following purpose: stream and wetland
mitt ation and restoration u oses.
(g) "Seller's Notice Address" shall be as follows:
Mr. Michael R. Allen
P. 0. Box 1401
Burlin ton, North Carolina 27216-1401
except as same may be changed pursuant to Section 10.
(h) "Ruver's Notice Address" Shall be as follows:
Restoration e TT fl
1101 Haynes Street Sutie 203
Ralei h, North Carolina 27604
except as same may be changed pursuant to Section 10.
? (i) If this block is marked, additional terms of this Agreement are set forth on Exhibit B attached hereto and
incorporated herein by reference.
Section 2. Proration of Expenses and Payment of Costs: Seller and Buyer agree that all property takes, leases, rents,
mortgage payments and utilities or any other assumed liabilities as detailed on attached Exhibit B, if any, shall be prorated
as of the date of Closing. Seiler shall pay deed stamps and other conveyance fees or taxes, and Buyer shall pay recording
costs, costs of any title search, title insurance, survey and N/A
Section 3. Sale of Property- Seller agrees to sell the property for the Purchase Price set forth on page 1.
Section 4. Payment of Purchase Price: Buyer shall pay the Purchase Price in accordance with all the terms and conditions
of this contract-
Section 5. Title: Seller agrees to convey fee simple marketable title to the Property by general warranty deed, subject only
to the exceptions hereinafter described. Seller represents and warrants that Seller is the fee simple owner of the Property,
and at Closing, Seller shall deliver to Buyer good and marketable fee simple title to said Property, free and clear of all
liens, encumbrances and defects of title other than zoning ordinances affecting the Property, utility easements of'record
' serving. the- Property, taxes not yet due and payable, road rights-of-way of record and those other encumbrances,
reservations, restrictions and easements and other exceptions set forth on Exhibit C attached hereto ("Permitted
Exceptions "?
Section 6. Conditions: This Agreement and the rights and obligations of the parties under this Agreement are hereby made
expressly conditioned upon fulfillment (or waiver by Buyer) of the following conditions:
(a) New Loan: The Buyer must be able to obtain the loan, if any, referenced in Section l(bXii). Buyer must be able to
obtain a firm commitment for this loan on or before _ N/A , effective through the
date of closing. Buyer agrees to use its best efforts to secure such commitment and to advise Seiler immediately
upon receipt of lender's decision.
(3 OF 6)
?.. F- -,- .,ra...r . - . --. WT7
NCAR FORM 4580
Copyright 01999

rya! I
(c) Title Examination: After the date of c =ution of this Aarecment by Seller, Buyer shall, at Buyer's expense,
cause a title examination to be made of the Property before the end of the Examination Period, as defin d. in Section 1(e? In
the event that such title examination shall show that Sellces title is not good, marketable, fee simple and insurable, then the
Buyer shall immediately notify the Seiler in writing of all such title defects and exceptions, as of the date Buyer learns of
the title defers, and Seller shall have thirty (30) days to cure said noticed defects. If Seller does not cure the defects or
objections within thirty (30) days of notice thereof, the Buyer may teriniriate this Agreement and receive a return of
Earnest Money (notwithstanding that the Examination Period may have expired). If Buyer is to purchase title insurance, the
insuring company must be licensed to do business in the state in which the property is located. Title to the Property must
be insurable at regular rates, subject only to standard exceptions and Permitted Exceptions.
(d) Intended T]sc: Sella represents and warrants that, to the best of Seller's knowledge, use of the Property for
its intended Use will not violate any private restrictions or governmental regulations. If Buyer deteiznines, prior to the
date of Closing, that use of the Property for its Intended Use wi11 violate any such private restrictions or governmental
regulations, then Buyer may terminate the Agreement by written notice and receive a return of the Earnest Money, and
'j neither party shall then have any further obligations in connection with this Agreement -
(e) Same Condition: If the Property is not in substantially the same condition as of the date of the offer,
reasonable wear and tear excepted, then the Buyer
may terminate the Agreement and receive a return of the Earnest Money.
(f) Iicsnections: Buyer, its agents or representatives, at Buyer's expense and at reasonable times duffing normal
business hours, shall have the right to enter u on the Pi•o
=..A- ;, P Perfy.for the purpose. of inspecting, examining, performing soil
boring and other testing, condueiing timber cniis.es,'and surveying the Propcitjr. Buyer SIia1I also have a right to review
and iaspext all leases, contracts or other agieemEnts. affec'timg or related direcd y. to.the Property and shall be eatitIed to
review "such books and records of Seller as rclatedircett tome o` "? T
y operation and &atnIZditic a of the Property. Buyer assumes
all respoiisibiIity for the acts of itself its agents of rz•P t resru'atiy d f ' _
._es is ecising`its rights under this Paragraph and agrees
to indemnify and hold Seller harmless from any damages resulting therefrom. F?%pt as provided iii Section 6(c) above,
i •• .e• r r::: n1 <.
Buyer shall have from the date of ac,,-eptance through the end ofthe Examination Period to perform fbe above inspections,
examinations and testing to determine if the Pro
peity is stiitable for the Intended Use. It, prior to the expiration of the
Examination Period, Buyer determines that-the Property is pasuitable, iii Buyer's sole discretion, and provides written
notice to Seller thereof, then this Agreement shall terminateiyer shall tbdmpgKx be
entitled to retain the Earnest Money.
e t for the materi sociata1d?ztb ttheooration of &he Fcility
Section 7. FaMronmentzl:/ erprepresents and warrants fl as no ac o gc e presence or sposaf
within the buildings or on the Property of hazardous or toxic waste or stibstances; wfiich are defined as those substances,
materials, and wastes, including but not limited to, those substances; materials and wastes listed in the United States
Department of Transportation Hazardous Materials Table (49 CFR i72.101) or by the Environmental Protection Agency as
hazardous substances (40 CFR Part 302) and amendments thereto, or such substances, materials and wastes, which are or
become regulated under any applicable local, stare or federal law, including, without limitation, any material, waste or
substance which is (i) petroleum, (ii) asbestos, (iii) polychlorinated biphenyls, (v) designated as a Hazardous Substance
pursuant to Section 331 of the Clean Water Act, 33 U.S.C. Sec: 1251, et sea. (33 U.S.C_ 1321) or listed pursuant to Section 307
of the Clean Water Act (33 LLS.C. Sec. 1371) (v) defined as a hazardous waste pursuant to Section 1004 of the Resource
Conservation and Recovery Act, 42 U.S.C. Sec. 6901, et_ sev. (42 U.S.C. Sec 6903) or (vi) defined as a hazardous substance
pursuant to Section 101 of the Comprehensive Environmental Response, Compensation and liability Act, 42 U.S.C. Sec.
9601, et. sea. (42 U.S.C. 9601). Seller further states that it has no actual knowledge of any contarnination of the Property
from siach substances as may have been disposed of or stored on neighboring tracts, and it has no reason to suspect that
such use or disposal has occurred, either during or prior to it's ownership of the Property.
(4 OF 6)
lvCA1Z FORM r:580
.
C ozrtr;Q:,t rc 999
Sertdon & Risk of Lossl3)atn2ndl2epa-; Until the Closing, the risk of loss or damage to the props, ==Pt as otherwise
' provided herein, shall be borne by Seiler. In the event the property is damaged so that the Pro =V cannot be conveyed in
substantially the same condition as it was prior to Closing, $uyer may ele= to tcminatt this Agree, and the Earnest
Money shall be retnrncd to the BuyK-. Exempt u to maintaining the Property in its same condition, Sete: shall have no
' resaonsiDiIity for the repair of the Prop-ty, mcitiamg any improvements; unless the parties hereto agree in writing.
Section 3. Earnest M=ey Disbms ement: In the event this offer is not ac=ted, or in the event that any of the conditions
hereto are not satisfied, or in the went of a brew of this Aereem=t by SclIer, then the Earnest Money shall be returned
to Buyer, but such return shall not affect any other remedies available loo Buyer for such breach. In the event this osier is
ac=pied and Buyer breaches this Apr-e meat, then the Earnest Money sha11 be forfeited, but'such forfeiture shall not
atect any other remedies available to Seller for such breach. NO= In the event of a dispute between Seiler and Buyer
over the return or forfeiture of Earnest Money held in escrow by a licensed real estate broker, the broker is required b
state lawto retain said Earnest Money in its trust or escrow ac unt until it has obtained a written release from the parties
consenting to its disposition or until disbursement is ordered by a court of competent jurisdiction.
Sex'fion 10. Clos'ng: The Closing shall consist of the eu=fion and delivery by Seiler to Buyer of a General Warranty
Deed and other documents customarily executed by a seller in similar transactions, including without limitation, an owner's
affidavit, lien waiver forms and a non-foreign affidavit and the'payment by Buyer to Seller of the Purchase Price in
i accordance with the terms of the Purchase Prim At Closing, the Earnest Money shall be applied as part of the Purchase
Price or as otherwise provided in Section 1(b)(i? The Closing shall be held at the office of Buyers attorney or such other
place as the parties hereto may mutually agree. Possession shall be delivered at closing, unless otherwise agreed herein.
Section 11. Notices: Unless otherwise provided herein, all notices and other communications which may be or are required
to be given or made by any party to the other in connection herewith shall be in writing and shall be deemed to have bemi
properiygiven and received on the date delivered in person or deposited in the United States mail, registered or certified,
return receipt requested, to the addresses set out in Section 1{g) is to Seller and in Section' I(h) as to Buyer, or at such other.
' addresses as spe='ned by written notice delivered in accordance Herewith.
Section 12. Euiix-e Agreement: This agreement constitutes tic sole and entire agreement among the parties hereto and no
Modiification Of thus Agreement shall be binding unless in v ing and signed by all parties hereto.
Section 13. Adverse Iuformation and Compliance with
(a)Seticr kiiowiedae: Seiler has no knowledge of (i) c,ndemaation(s) affecting or contemplated with respect to the
Property; a actions, suits or ? .
proceedings pending or tfiresteaeii against the Property; (iii) changes contcniplated is any '
applicable laws, 'ordinances or restrictions affecting the Property; or (iv) govCruniental speciesd assessments, either
' pending or corffirmed, for sidevalk, paving, water, sewer, sir other improvements on or adjoining the Property, and no
owners' association special assessments, except as follows: None
' . {Insert
'None' or the identification of such assessments, if any). Seller shall pay all confirmed owners' association asscssn=ts
and all confi med governmental assessments, if any, and Buyer shall take title subject to all pending assessments; if any,
unless otherwise agreed as follows- N/A
"f (b) ConwH2nc=_ To the best of Seller's knowledge and belief, (ii) Seiler has complied with all applicable laws,
orainancts, regulations, statutes, rules and restrictions pertaining to or affecting the Property; (ii) performancc of the
As In -t will not result in the bread. of, constitute any default under or result in the imposition of any lien or
encumbrance upon the Property under any agreement or other instrument to which Seller is a party or by which Seller or
the Property is bound; and (iii) there are no legal actions, suits or other legal or administrative proceedings pending or
threateacd against the Property, and Seller is'not auara of any facts wiiica taight rrsalt in any such action, suit or other
proc=i:ng-
' (S OF o)
NC-ARFORM 9530
Conyr igfit C)1999
IF :MMA U Tf? cam.: ?aieY? C../. ?•.?- ?-.

Section 14. Sm vivai of Representations and Wa.=aties: All representations, warranties, covenants and
' by the parties hereto shall survive the Closing and deliv er made
and without further consideration, ?' of the deed. Seller shall, at or within six (6) months after tha
Closing, n, ==ute, acknowledge- and deliver to Buyer such other documents and
instruments, and take such other action as Buyer may reasonably request or as may be necessary to more effectively
transfer to Buyer the Property described herein in accordance with this Agreement
Section 15. AppIic2ble Law. This Agreement shall be construed under the laws of the state in which the Property is
' Located.
Section 16. Tax Deferred Exchange: In the event Buyer or Seller desires to effect a tax-deferred exchange in connection
with the conveyance of the Property, Buyer and Seller agree to cooperate in effecting such exchan
that the cxchanm ... ge; provided, however,
g g party shall be responsible for all additional costs associated with such exchange, and provided further,
that a non-exchanging party shall not assume any additional liability with respect to such tax-deferred exchange. Seller and
Buyer shall execute such additional documents, at no cost to the non-exchanging party, as shall be required to give effect
' t6 this provision.
THIS DOCUMEI\rr IS A LEGAL DOCUMENT_ EXECUTION OF THIS DOME Mr HAS LEGAL CONSEQUENCES
' THAT COULD BE ENFORCEABLE IN A COURT OF LAW_ THE NORTH CAROLINA ASSOCIATION OF REALTORS®
MAKES NO REPRESENTATIONS CONCERNING THE LEGAL SUFFICIENCY, LEGAL EFFECT OR TAX
COI\'SEQUENCES OF THIS DOCUMENT OR THE TRANSACTION TO WHICH IT RELATES. IF YOU DO NOT
' FEEL THIS DOCUMENT MEETS YOUR NEEDS, YOU MAY WISH TO CONSULT YOUR ATTORNEY.
SEE-
Ind;, Individual
Business Entity
(SEAL)
(SEAL)
(Name of Firm)
By:
Title:
Date:
(SEAL)
(SEAL)
Date:
(SEAL)
Date.
Business Entity
(Name ofFrrm)
(SEAL)
The undersigned hereby acknowledges receipt of the Earnest Money set forth herein and a; o hold said Earnest
Money in accordance with the terms hereof.
1

(Name of Firm)
(6 OF 6)
NCAR FORM =*sSo
COPyrieht ©1995
a:u. uw.?x, YT. l _+...,_..w._?.. ..6 ra•b?smcY .'.liU:.:k lUL!
EMMIT A
Attached to and made a part
of that certain Agreement for Purchase and Sale
of Real Property by and between Restoration Systems, LLC, Buyer, and
Michael R. Allen, Seller.

Lying and being in Gulf TowasEp. Ch=h-Wa.County, and Poekat Township, Lee County, North Carolina, and
being all that ectain teal tstatc couvcycd by L F. Chandler and wife to Flccuic Light do Power Connpaay E,y
Deed bearing date November 17, 1924, duly registered in the Office of the Rogiuar of p=d for Lex County,
North C=Ucx on the 15 day of March 1921 in Book 20 of Deeds, page 489; and duly re cistered in the Cffice
of the Regirter of Deeds for Chatham County, North Mina on the 22"t day of Match, 1921 is BooleFW.
Pane 411. to which reference is hereby made; tad being 1 portion of the property described RRST in a Deed
from Frank A- Reid. single, to Pigeon River Power Company (ptzdccusor in title to Carolina Power & light
Company) dated Match 29, 1926, and recorded in. Book HG, Page 509 and Book GK, Page 429, Chatham
County Registry, and In Book 28, Page 398, Lee County Registry, and being known as the "Old Carbonton
Hydroelectric Plant", and which; according to a tvennt survey of the same entitled "Property of Camiian Hydro
at Carbonton, MC", dated June 13. 1983 and prepared by Smith & Smith Surveyors is mare particularly
described as follows.
BEGRgN1NG at a large Ern ar=e above the east abutment of the Deep Rive bridge at Carboaton, running
theca North fit degrees 30 minutes West 5 far to an iron pipe; thence the same course 48.41 thei to an iron
pipe on the scuthcm bank of Deep Rivtz; thcacc the same course, caning Deep Rivcr. 184.53 fart to an iron
pipe on the northern bank of Deep Rivet; theaar North 32 degrees West 57.00 feer to-a point on or near the
eastern tight of wry line of Norfolk and Southern R:>iltiaay, tbatcr North 50 dog-roes 00 minutes 00 seconds East
107.0 fct to a ptsint under the old M=shbum stare.buikfiag; thence Notch 74 degrees 11 iainutes 48 sends
Fast 69.46 fect to an iron pipe set under the not h= cad of Deep Rives bridge, which pipe is located in the
center lino of the right of way of North Carolina.Mghway No.-42- thence North 75 degrees 01 minute 36
rccoods Fit 354.24 feat to sn iron stake in Ilia sautharr; line of the hands of Oscar WiLync 1?;:Ilr dream with
Kelly's line North 51 degr= 00 minutes 09 seconds East 131.52 feet to an iron pipes tlrea= continuing with
Kelly's lute South 68 dcLa= 14 minuttea 14 seconds Ent 107.31 fart to x eoacrcte is the line of
1-695 aces Carolina Power & Limit Company substation lot: d== with the line of said substation lot South
21 degrees 8 minutes 37 seconds West 132-0 feet to a point in the rocks below the data, the southwest comer of
said substation lot; themes South 3 degmc 40 minutes Z seconds East 323.75 feat crossing Deep River to a point
in said river near the southern bank thcrcaf; rbeace South 33 degrm- 50 ,nip Wei 42.26 feet to an hoer pipe
on the southern Bank'of Deep River in ttrc tine of Mlrs. T. B. Fuquay; thence with said Fuquay tine South 33
degrees 50 utinutes West 170.73 fctx to an iron pipe in the ors= right of way line of N.C Highway No. 42;
d== the same course 61.01 feet to a point ncsr the westeruh right of wry line of said 17.rt hway No. 42: cheerer
Northh 36 degr s 00 minutes 00 seconds Wan 391 feet to as iron pipe in said right of woy, thence South 72
dcp= 50 minutes West 46 fca to an iron pipe; thence the same course 5 feet to a large den it= the point and
plat of SEGINPIIIVti and containing 5.499 macs seardin7 to the survey -above inferred to, and being the saint
land maveyed to GRANTOR herein by Deed recorded in Book 345, Page 993. I:er County Registry and
Book 462, Page 825. Chatham County Registry.

' Attached to
May
Restoration
11_11?

and made
2003, by
Systems,
. i5K,
Option to Purchase dated
Allen, Seller, and
Lylag and being in Golf Township, Chad-u-County, and Pocket Township, Lee Cormcy. North Carolina, and
being all that certain rml estate conveyed by L F. Chandicr and wife to Electric Light & Power Company by
Deed bearing date November 17, 1920, duly mewc=d In the Office of tho Rosister of Duds for Lee Coder),.
North Carolina On the 1-1* day of March 1921 in Book 20 of Deeds, Page: 429; and duly registered in the OiFtcc
of the Register of Deeds for Qtatfmm County. North Carolina on the 22"4 day of March, 1921 in Book.FW.
Page 411, to which refereace is hereby tram and being i. poruoa of the property describe d FAST' in a Deed
from Freak A. Reid, single, to pigeon River Power Company (pt in tide co Carolina Power.& Light
Company) dated March 29; 1926, and recorded in Book HG, Page 509 and Book GIC, Page 429, Chatham
County Regisay, and In Book 28. page 398, Lx Couary Regiscy3 and being known as the "Old Carboaton
Hydroelectric Plant !% and which, according to a recent survey of the same entitled "Pmpccty of Caioliw Hydro
at Carbonion, MC.7, dated lure 13. 1983 and prepared by Smkh dr Smith Surveyors is more p=xiculady
described as follows.
BEGL NNING at a large Elm tree above the cast abutment of the Deep River bridge at Carboaton, running
thence Noah tit degrets 30 minutes West S feet to an iron piM thence the setae course 48.41 feet to an iron
pip* on the southern bank of Docp River; the= the same course, crossing Deep Raver. IS4M tax to an icon
pipe ou the northcru bank of Deep River; thence: Notth'32 degiuxs West 57.00 feet to a point on or near. die
easwn right of way line of Norfolk and Soenhern Railway; thertue* North 50 degrees •00 minim 00 wads East
107.0 feet to a point and= the old Mashburn swmbuil<fiW. thence North 74 dew 11 48 sestina,
Fast 69.46 fed to an iron pipe set uader the north= end a Deep Rims brides-=. wrkh pipe is k=tcd is the
crater lino of the right of way of North Caroiiaa.lfighvvay No. 42; d mace North 7S degrees oI minute 16
scconds East 354.84 feet to = iron stake In the Southem line of tho kinds of 0scac Wttytic Sally; tl>cmce with
Kelly's tine Nardi 51 dcgr= 00 minutes 09 ie:ands Ent 131.52 feet to an hna pipes d=cc caniimting with
Kelly's line South 68 dcgr=14 minutes 14 seconds Fast 1073 i feint to a Co=t +e nxxkmmcuf in the lice of
1.695 acres CatoPura Power & LiEbt Compaay substation lot thenew with. the line of said sobsWon lot South
21 degrees 8 minutes 37 sccoa& West 1310 fi=t to a paint in the rocks below the dam, the sottthWest corner of
and subsuition lot; thence South 3 degre.-a 40 dticums 2 second- East 323.7$ feet czaakig Deep River to a point
in said raver near the =them bank tfi cot. theme South 33 degrem 50 West 4226 f:d to an iiua pip:
on the Southern Bank of Deep River in the Um of Its. T. B. Fvquap; thence with said Faq y true South 33
deeec 50 rninutec West t70.73 flex to an ima pipe a the a2mcm Lien of way line of MC. Highway No. 42;
tl c_ = the samo.coutse- 6I.01 foot to a point r- the western right of wry line of raid F.tehway ft 42. the=
North 36 degree= 00 minrmos 00 seconds Warr 391 feat to an iron pipe in acid right of way, dbarce South 72
dep-= 50 minutes West 46 fever to an iron pipe; tficoce the same course 5 feet to a large else ate the point and
plea of BEGINPiIG and eom-airing 5.499 aces aecocdiaG to the survcy above referred ter, and being the same
land' conveyed to GRANTOR herein by Deed recorded is Book 345, Page 993. LG County Registry and
Book 462. Pine 825. Chatham County Regis",

k

H

APPENDIX E
' WRITTEN EVALUATION OF CARBONTON DAM REMOVAL FOR COMPENSATORY
MITIGATION
NCDWQ AND USFWS

11

0
' OF W ATF9 Michael F. Easley, Govemor
.0 QG William G. Ross Jr., Secretary
CO North Carolina Department of Euvironmeat and Natural Resources
-l Alan W. Klimek, P.E., Director
< Division of Water Quality
April 15, 2003
George A. Howard
Restoration Systems L.L.C.
1101 Haynes Street
Suite 203
?. Raleigh, North Carolina 27604
Dear Mr. Howard:
RE: Carbonton dam removal as compensatory stream mitigation
Moore County
Based on our field visit on March 26 and subsequent discussions with John Thomas with the Corps of
Engineers, DWQ supports the removal of the Carbonton dam and believes that this project can provide
suitable compensatory stream mitigation for a variety of projects in the area. Our position assumes that the US
Fish and Wildlife Service have no objections to the dam's removal in relation to the Cape Fear Shiner
population downstream and pending the planned visit with the Corps of Engineers and US Fish and Wildlife
Service staff at the end of this month.

We do have the following concerns that we believe can be addressed through monitoring before and
after dam removal and will be glad to work with you on a detailed monitoring plan if the project moves forward:
1. Seasonal issues with respect to the Cape Fear Shiner - We believe that removal of the dam would
be best in the fall with respect to possible downstream impacts on the species and other aquatic life
but will be glad to discuss the timing of the removal with you and other agencies.
2. Sediment - There are several issues with respect to sediment that will need to be addressed as
outlined below.
a. Sampling for contaminants - The sediment in the lake will need to be sampled for
contaminants (especially heavy metals). If levels of metals are problematic, then some
sediment removal from the lake may be needed before the dam is removed to prevent the
flushing of these metals downstream.
b. Management of sediment release on downstream aquatic life at dam removal - It will be
necessary to get some idea of the amount of sediment that will be released during dam
removal and whether it will need to be removed (perhaps with a temporary instream
structure immediately downstream of the dam with associated sediment pumping and
removal) before the dam is breached.
3. Aquatic life recovery - Monitoring of the aquatic life (fish and macrobenthos) above and below the
present dam before dam removal as well as the recovery of these organisms in the reestablished
river channel will be needed to demonstrate the effectiveness of the dam removal as well as identify
any adverse impacts that will need to be addressed.
4. Stream stability - We are concerned that some of the tributaries above the dam may experience
excessive headcutting and therefore introduce excessive sediment into the river. A proposed
monitoring plan for these tributaries and their streambank stability will be needed. Any headcutting
will likely be fairly rapid so monitoring should be designed accordingly. We are also concerned
about river bank stability once the dam is removed and before vegetation gets established to
stabilize these banks. The timing of dam removal may also influence this concern as would plans
for temporary cover on exposed banks.
1650 Mail Service Center. Raleigh. NC 27699-1650 (Mailing Address)
2321 Crabtree Blvd.. Raleigh. NC 27604-2260 (Location)
a
10
'N C6 PN A

Water Quality effects of the dam - As we discussed, please contact Ms. Dianne Reid in DWQ's
Environmental Sciences Branch for background data on the water quality of the Deep River behind
the dam. We believe that these data will provide strong support for removal of the dam.
6. Mitigation credits - As we discussed briefly, the Corps of Engineers and DWQ will need to Work
with you to develop a credit schedule. Two pertinent factors in those credits will probably be the
protection of buffers along the Deep River and whether the Cape Fear Shiner reoccupies the Deep
River once the dam is removed.
Again, DWQ supports the concept of the removal of the Carbonton dam and believes that it will
provided compensatory stream mitigation credits in accordance with our flexible stream mitigation
policy dated May 2000. We look forward to working with you on this important project. I can be reached
at 919-733-9646 if you have any questions.

Cc:

Steve Mitchell
Dave Penrose
Dianne Reid
Bryn Tracy
John Thomas, Raleigh Feld Office US Army Corps of Engineers
Mike Wicker, US Fish and Wildlife Service
File copy
Central Files
1

United States Department of the Interior
FISH AND WILDLIFE SERVICE
Raleigh Add Office
Post Office So: 93726
4cm a +a'9 Balogh, North Caroliaa 27630726
May 8, 2003
s I George A. Howard
Restoration Systems L.L.C.
1101 Haynes Street
i
Suite 203
Raleigh, North Carolina 27604
Dear Mr. Howard:
The removal of Carbonton Dam on the Deep River near Carbonton, North Carolina would
restore natural hydrology to the Deep River for approximately ten and one quarter miles and
consequently make this habitat suitable for the native flowing strearn aquatic community
including the federally-listed endangered Cape Fear shiner Notropis mekisrocholas. The removal
of the dam would also remove a barrier that prevents upstream and downstream populations of
Cape Fear shiner from being connected. The Cape Fear shiner is known from four small
' populations in the Cape Fear drainage in Randolph, Moore, Lee, Harnett and Chatham Counties.
Dam construction in the Cape Fear system has probably hadthe most serious impact on the
species by inundating the species' rocky riverine habitat. Changes in flow regulation at existing
' hydroelectric facilities could further threaten the species. The removal of Carbonton Dam will
restore a very significant amount of inundated habitat and will also remove Carbonton Dam's
role in modifying stream flow. The removal of Carbonton Dam would be very beneficial for the
' natural stream aquatic community including the Cape Fear shiner. I look forward to the removal
of this dam and would like to work closely with the dam removal effort to insure the dam is
removed in a manner that provides the greatest environmental benefit.
Sincerely,
1)7.r /C4 0." C?L
Mike Wicker

0

APPENDIX F
SELECTED PHOTOGRAPHS OF THE
DEEP RIVER MITIGATION BANK
.. 7 f +
4 - Y
.: J
Aerial Before Removal
vie, 4

Conceptual Aerial After Removal
Carbonton Dam from downstream on the south bank

?'.: _,y
'
?
? ?i.
?:`
4`*a+?ac S9,y..lt
,r ? y?+t'?'? +
"1 _

Deep River passing over the Carbonton Dam from the powerhouse deck

J, Sty 1?r . s + +???? ? } rt+ 1 ` i
ioa

`'
` '
• 7
t ?
t ?
1 ?Yu ? c c x
_ __

Dam and powerhouse
Riffles and pools upstream of impoundment
Still water in Big Governor's Creek
Still water in impoundment
51
`til 1, n 1 ^i ?a :: r _ d• - _ _
DWQ regulatory field review

.n ?-?,E e x

i +

Looking downstream at the Railroad Bridge and limit of impoundment

Mussels being collected at the foot of the dam
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t 8 e.
r. .yp~ ~ _ d
c. v~ yam. ~ y~ a
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r
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i ~ ~ ~
b . n ~ , •~r -
^ ~ •,~r r
y~` 1 i~ T ~ y • jt z.
~ .s ~ 1 1.1
+57~? ~ ~ , . v ~r~_, ~ ~ a .Y ~d` 4
i'_ - 1"
,l ~
~ ~ , Y'~:' - 1' 1 1 ~ 1
R_ i ~~11
- ~
-L , 5 F ~ 1 ~ ~
~r
1
s" - ~ ~
a .
~ _
i ~7 `a ~
`
ia,~'~t~;-i ;
' '+R ?x
Ai .~~'r' • ~Ye - :mot ~
~ 1 ~ ~ 1 i~ ~ t_.
~
1 I w , _ ~ i
.r _ ~f ~ I.Y, ~ . -M
' 1 1 ~ r r 1 1 / r
f I` ~ I r r • 1 1 1 1 1 'V,. Iii'!!! •I' `:'i` f
1 1 Z
~ _

1 0 1 2 Miles ~ ~
~ v ~ r `
a . 5 ; ~
• :f 3 ~ .y'~•.
Table 1. Linear len th of im ounded waters of the U.S. affected b Carbonton Dam. All distances are in ~ 9 p Y , F
, linear feet, while the credit ratio and buffer scale were used from the Determining Appropriate . , ' " ;FS II
5, om ensato Miti ation redit for Dam Removal Pro'ects " issued b A E on March 2 C p ry g C ~ y C 2, 2004. - m
Amount of rotected ri alien buffer was calculated to be 11960 linear feet contributin to 143,90 acres ~ ` : p p ~ 9 ~ r
of buffer along the Deep River. These results are preliminary, and are anticpated to be an underestimate
of available credit due to methods used to obtain these values• ~ ~ ~ ~ -9?' ray'
R
Stream Im ounded Reach Credit Ratio Buffer Scale Available Credit Feet ! r' p ( )I
Trik Tributa 11 r~/ ~r,9, T
Deep River 49622 70% (Multiply by 0.7) 5-24% Buffered 34735 °:,f. 'J x
McLendon's Creek 24440 70°h Multi I b 0.7 17108 .
( pY Y 1 ~ i/..~ r
Big Governor's Creek 13580 10% (Multi I b 0.7) 9506 pY Y ~ .
Little Governor's Creek 5050 ° 70 Multi I b 0.7 3535 /ol pY Y )
Lick Creek 2763 70% Multi I b 0.7 1934 1 i
( p Y Y 1 Tnl Tributa 2 ' ry r.
Tributary 1 3981 70% (Multiply by 0.7) 2786 ~ Tributa 3 ry
Tributary 2 3679 70% (Multiply by 0.1) 2575
Tributar 3 15 0 82 7 i I 0. Y 0 /o Mult b 7 1107 I - )t.
pY Y
Tributary 4 929 70% (Multiply by 0.7) 650 Tribu 4 to ry _
Tributary 5 622 70% (Multiply by 0.7) 435
~r ' Tributar 6 70% Multi I b OJ Y 1222 ( p Y Y 1 855
~ Tribute 7 7 ° 4247 Ok Multi I b 0.7 ry 2973 ( pY Y 1 - - 1
o w Tributary 8 6668 70% (Multipl by 0.7) 4fi68 Tributary 5 - -
Tributary 9 2767 70°k Multi I b 0.7 1937
Tributary 10 2276 TO°~ Multi I b 0.7 1593 y E.
Tribute 11 711 TO°~ Multi I b 0.7 498 ry _ ( p Y 1 , , ;k~.. _ . Mj ~ r:
Tribute 12 0 ` ry 1532 70 ~ Multipl by 0.7) 1072
ee aver
Tribute 13 662 0 ry lO k (Multiply b 0.7) 463 > ; , ~ ' ' I I a ion an
Tributary 14 2949 70°~ (Multiply by 0.1) 2064 ~ ` ~ ~ -
- - TOTAL 129,282 Total Distance 90 494 With BOnus 116 350 .
z. .A
I a am ee an
L oore oun yes
.H. \l N
F s o aro ina Tributary 6 I . .
;u~_ °7.~
ti" ~ ~ I
~ ~ r
j ~ Tributa 7
ry
h 71 ~K:
5 "~.a ~ • ~ f ~d M .y, n~,~ s " f
~ 'Tribute 9 L-- ry • 9 K.L~C,; l.: i ~ t~.
T f 'r
h~~ 1~ . ~..f i
5~ ~A
~ k _V.. f
.c a * . .
~ ~ , ~ C i h. ~~.~Y- ~ I I a i o n re i
;y; ~ Tributa 8 4~ a ermina Ion
s ~ Y , . ~s a r'n s a .1 ~ P
~ Y Tribute 11 }'i~ ~ ry o{~,
~ x~ r,;
Tribute 12 ~ ~~:ai ry r ,~z.; t:. Y w
Tributary 10 to ry 10 F~, =~,a r
.~r yy
~R , a
~ Tribute 14 ~ ry y
r~, 1 i ~ ~ S r ~ : '„1f ,A ~ ~ w
I ( ~I I' , t2 g
.E Lick Creek ~ - - '~'S '1 Y
~ ~
I J ~ ~ Little Governor Y, . tle Governor s Creek :x; ; ~ - - -
a.~, y, -z s~' ~ ~ raven ae
a , ; , ~ ~ ~ arc
Tribute 13 ry r j a ~ ,ira"" /
McLendon s Creek ~ r, ~~V~,, , ~ 3 X . *f . yx
r ro ec o. i l
P Bi Governor's Creek Lek
9 es . s _ ;
;f
•d', ~
Y ~
t~~ ;d ~r
i e~ x~
k. I I t~"
L•: F r 1' y;,, t. #r' ~i''~ Q dr ,{k b. k
..~...ma~yy .°F' pGy` ~ i M~ Ic - Parcel with Protected Buffer
t. F 4~ ` ~ .L,
Protected Ri arian Buffer p
~~,j:' q~ s f 200-foot Buffer
~y. i. d a.. 400-foot Buffer
I 6 t+~ ~ ~ y ;~~fi,. _ y ,
hF; , _ ~ Im ounded Tributa PRELIMINARY p rY
w~ _ Carbonton Im oundment p
w Blue-Line Stream Source.CGIA
~ i