November 10, 2009 Ms, Coleen H. Sullins, Director North Carolina Division of Water Quality 1617 Mail Service Center Raleigh, NC 27699-1617 Dear Ms Sullins: Tam writing to you regarding the release of nutrient offset credits to the Environmental Bane & Exchange (EBX) sponsored banks in the Neuse 01, 03, and 04 basins. As you may know, the sites used to generate the nutrient and riparian buffer credit are historic stream and wetland mitigation sites that were developed for NC DOT in 2001 and 2002. ‘These sites were restored and conservation easements were recorded on the property at that time. Thave attached maps of each of these sites showing the areas that were used for generation of wetland and stream credits as well as the maps from the EBX Bank Development Plan showing that these same areas are now being used to generate riparian buffer and nutrient offset credits. I personally worked on these sites as an employee of Buck Engineering and would be happy to discuss any details of the sites with you. We understand that DWQ is in the process of developing a policy of not allowing nutrient or riparian buffer credit to be generated from historic stream and wetland mitigation sites. We support this effort and would encourage that this policy be enacted as soon as possible, ‘Once this policy is in place, itis our position that this would restrict the ability of EBX to sell nutrient or riparian buffer credit that was generated counter to the DWQ policy. EBX could not claim any material damage from this action as they have already generated significant income ftom these sites by selling a large portion of the credits to NCEEP and some smaller portion to private entities. This income did not involve any significant expenditure of funds on their behalf as they already owned and had restored these sites ‘We have enjoyed a good working relationship with DWQ and do not intend to put the agency in a difficult position, however you should understand the position that companies like ourselves and Restoration Systems are in. We both have extended significant capital in obtaining land, designing projects and implementation. EBX however has developed significantly more credit than our two companies by simply filing some paperwork. ‘This is negative for the environment and for the health of the Nutrient Trading Program. Wildlands oginesing In. * phone) 919-851-9986 + fa 912851-9987 + 5605 Chapel Fl ie bNC 27607> WODLINDS We appreciate your prompt attention fo this matter and Took forward to a quick resolution. Sincerely, John Hutton ‘Senior Project Manager Wildlands, Ine. ‘Wildlands Enginering, Ine. + pone) 919-851-986 + fx 919-851-9987 + $605 Chapel Hi Blvd, #122 + Raleigh, NC 21607