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Legislature, and includes a policv which stales, in part, "the legislative assembly therefore concludes 

 that wetlands should be protected and preserved". 



More recemlv, trie law has been closely scrutinized and criticized for being a "wetland 

 mitigation bank" wiin serious flaws by some conservation interests, yet attempts have been repeatedly 

 made to repeal the law by pro-drainage interests saying the law is loo restrictive. The original intent 

 of the North Dakota law was to restrict and restrain wetland destruction. The law, as most true 

 compromises, has areas which can be improved. 



To accomplish NNLW, North Dakota law requires acre-for-acre replacement of all wetlands 

 drained under permits authorized bv the state. A state permit is required for all wetlands with a 

 drainage area of 80 acres or more (note that is drainage area, not wetland acres). A statewide wetland 

 banking sy.stem is used to track wetland losses and replacements within four biogeoeraphical units 

 (hiotic areas) and individual counties. Only the acreage of restored and created wetland with "material 

 wildlife values" as determined by the North Dakota Cwne and Fish Department are credited to the 

 bank as replacement wetland. Tnis system is used to target replacements so that at least 50 percent of 

 the lost acreage is replacaJ in the same bioiic area. The law ensures that statewide wetland losses do 

 not exceed replacements by more than 2500 acres at any one time, and the banking system is divided 

 into temporary and permanent replacements. Only permanent replacements are allowed to be credited 

 against drainage acres in the bant:. 



A party draining a wetland under a state drainage permit may replace an equal wetland acreage 

 at entirely their own expense or bv using replacement credits in the wetland bank with payment of 10 

 percent of the replacement cost. Replacement costs are calculated by adding the average land value in 

 the biotic area and the estimated construction costs to replace that acreage. The wetland bank cannot 

 be used if replacements are not available. There is no direct requirement to replace wetlands which do 

 not require a state drainage permit (less than 80 acre watershed), but those acres are registered as 

 losses (debits) in the bank and reduce the available replacement acres (credits) in the area of drainage. 



North Dakota enacted the nation's first no net loss of wetlands legislation in 1987. The 

 aincept embodied in this legislation, and the actual nuts and bolts of the system, may do more to 

 protect wetlands, and guarantee the existence of a non- decreasing wetland base, than any other 

 regulatory approach could possibly hope to achieve. In faci, the widely accepted Fish and Wildlife 

 estimate of Z(J,()00 acres of wetland lost per year has been eliminated, and the wetland bank currently 

 shows a net increase of approximately 5(X) acres. Swampbuster is probably the main reason for halting 

 the wetland drainage, but over the long-term, it is the no net loss program which will maintain the 

 existing wetland base. 



Unlike other regulatory programs. North Dakota's no net lo.<is incorporates flexibility, 

 management and balance. The keypoinis of the program include: 



1. Wetlaiid Policy . This is essential, as it is opinions and attitudes which determine the 

 support and actions of landowners. 



2. Drain Permit . Only those wetlands with a watershed area of 80 acres or more require 

 a state permit. 



i. Wetlands Bank . All wetlands, regardless of size, are counted as debits in the bank if 



drained, and credits in the bank if restored or created (created wetland must have material wildlife 

 values). 



4. Replacement Requirements . All wetlands drained must be replaced with an equal 

 acreage of replacement wetland. If a wetland has a watershed area of more than 80 acres, it must be 

 replaced by trie sponsor or landowner, using one of three options: 



a. Replacement on-farm 



b. Replacement off-farm arranged by the project sponsor 



c. Replacement oft-farm through application to the wetland bank. 



5. Replacement Costs . The project spon.sor, whether individual landowners or other 

 wise, is required to pay only 109t of tlie replacement costs if replacement is satisfied through wetland 

 bank. 



6. Debit Limits . The wetland bank cannot carry any more than 2500 acres as debit. 



7. Wetland Replacement Acquisition . This must come from willing sellers, and cannot 

 interfere with natural waterways or dPtitlcial channels. 



8. ReplaceineiU Tax ravmcnts . This law requires that land placed into federal 

 ownership to meet replacement requirements must not diminish tax payments to local governments. 

 Full replacement tax payments must he made. 



9. Wetlands Bank . The wetland bank, for record purposes, is divided into four 

 accounts: 



a. Government agency account 



b. Surface coal mining account 



