4 May 2021

To: Robert Peoples, Source Protection and Appropriation Division, MDE

From: Tony Redman, Chief, Environmental Review Program

Subject: MDE File No. CO2021S004/01, CO2021G002/01 & CO2021G003/01: AquaCon Maryland
LLC, Marshyhope Creek, Caroline County
MDE File No. 21-DP-3867, AquaCon Maryland LLC, Marshyhope Creek, Caroline County

The above referenced applications have been reviewed by the Department of Natural Resources. The applicant
proposes construct a 25-acre land-based aquaculture facility in the Frank Adams Industrial Park in Federalsburg
to raise Atlantic salmon. The facility will have the capacity to produce 15,000 metric tons (33.07 million pounds)
of salmon annually. The applicant proposes to use groundwater from two wells (CO2021G002/01 &
CO2021G003/01) to supply the rearing tanks using a Recirculating Aquaculture System (RAS) to achieve 99%
water recirculation through a “Zero Water Change” technology. However, the RAS rearing process results in the
production of an organic hydrocarbon chemical, Geosmin. Geosmin is a natural bicyclic terpene with an earthy
odor which is absorbed by the fish and produces a muddy smell and taste. The removal of Geosmin from the fish
prior to harvesting requires the salmon to be placed in purging tanks where food is withheld and a continuous
flow of water through the purging tanks is maintained. The applicant proposes to accomplish the purging by the
use of a continuous withdrawal of between 1.8 million gallons per day (MGD) and 2.3 MGD of surface water
from the Marshyhope Creek (CO2021S004/01). The maximum flow rate would be 1,597 gallons per minute with
an expected monthly maximum usage of 69 million gallons of water. The water withdrawal would be continuous
and year round. The applicant proposes to treat the purge water to a state “significantly better than the quality of
the intake” prior to the purge water being discharged back into the Marshyhope Creek (21-DP-3867).

The applicant proposes to place the surface water intake on the west side of the Marshyhope Creek on property
owned by the Town of Federalsburg located on the east side of Rosser Road at MD Route 313. The intake pipe
would parallel Maryland Route 318 from the industrial park west to its intersection with Rosser Road and then
parallel Rosser Road to the property and the intake location. Siting the intake on the west side of the Marshyhope
Creek will require the intake pipe to cross the Marshyhope Creek which is tidal at this location. The applicant
proposes to site the discharge pipe from the purging tanks on the east side of the Marshyhope Creek south of the
MD Route 313 Bridge over the Marshyhope Creek. The discharge point would also be in the tidal portion of the
Marshyhope Creek and is located upstream of the proposed intake location. The aquaculture facility will be
located between Frank Adams Industrial Way and Wright Road in Federalsburg, Caroline County, Maryland.

The proposed surface water intake permit and the discharge permit are linked and therefore the Department of
Natural Resources is reviewing the potential impacts from these two permits together rather than as separate
reviews. To ensure that impacts to natural and living resources on the project site and vicinity are first avoided

Tawes State Office Building – 580 Taylor Avenue – Annapolis, Maryland 21401
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and then, if unavoidable, minimized to the maximum extent possible, the Department requests that the following
concerns and recommendations be fully incorporated into the review of the proposed activities:

1. Marshyhope Creek from the Maryland Route 213 Bridge downstream to its confluence with the
Nanticoke River has been designated as Critical Habitat for the Federal and State endangered Atlantic
sturgeon (Acipenser oxyrinchus oxyrinchus). Adult Atlantic sturgeon utilize a sand/cobble substrate for
spawning which is the type of benthic habitat found in the Marshyhope Creek at this location. The
juvenile sturgeon then migrate to the sea and return to their natal rivers to spawn as adults. Biologists
from the Department’s Fishing and Boating Services have placed sonic tags on Atlantic sturgeon in the
Nanticoke River/Marshyhope Creek system to track their movements. Four receivers capable of detecting
the acoustic signal from the tagged fish have been deployed in the Marshyhope between the VFW boat
ramp (downstream of the proposed discharge & intake area) to above Federalsburg. Since 2016 there
have been over 27,000 adult Atlantic sturgeon detections within this reach between August and October.
The Nanticoke River sturgeon population is unique as they are considered to be fall spawners. Eighty-
nine percent of these detections were from the VFW receiver just down from the inlet. However, 11% or
2,838 detections were recorded within and above the stream reach proposed for the location of the intake
and discharge locations. Sturgeon were detected moving above the Maryland Route 313 Bridge.

2. The Department’s Wildlife and Heritage Service has records for the State-listed threatened Glassy Darter
(Etheostoma vitreum) documented upstream and downstream of the proposed intake for this project.

3. Surveys by biologist from the Department of Natural Resources’ Fishing and Boating Services have
identified Marshyhope Creek as spawning areas for anadromous and resident fish species. Surveys have
documented spawning by anadromous fish including herring (Alosa sp.), hickory shad (Alosa mediocris),
white perch (Morone americana) and yellow perch (Perca flavescens). In addition, this portion of the
Marshyhope Creek is a principal spawning location for the recreationally important largemouth bass
(Micropterus salmoides) in the Nanticoke River system. These species and other resident fish species are
late winter and spring spawning species.

4. The Marshyhope Creek is a major destination location for recreational fishing. The Town of Federalsburg
Marina and the VFW boat ramps are favorite launching locations for recreational boaters to access the
Marshyhope Creek. The proposed intake and discharge pipes are located between these two ramps and
could pose a hazard to navigation, especially at very low tides, if not sited properly and marked.

5. Details on the treatment of the intake water and the characteristics of the discharge were not in the
materials provided for our review. The Department has the following questions regarding the use and
treatment of the surface water for the purging operation:
a. Does the purge water need to be maintained at a temperature other than the ambient temperature
of the incoming water from the Marshyhope Creek? If a temperature other than ambient
temperature is required, how does that temperature compare seasonally to the temperature of the
Marshyhope and will the temperature of the discharge be treated to match the temperature of the
Marshyhope Creek waters at the site of the discharge? The discharge should not result in a
thermal impact to the Marshyhope Creek.
b. Salinities in the Marshyhope Creek at the withdrawal location vary seasonally and between years.
Will the salinity of the incoming water from the Marshyhope Creek to be used in the purge tanks
need to be changed from the ambient salinity in the Marshyhope Creek? If the salinity of the
incoming water from the Marshyhope Creek is altered will the salinity of discharge water be
treated to match the existing salinity in the Marshyhope Creek at the time of discharge to the
creek?
 c. Will there be any changes to the pH of the water from the Marshyhope Creek as it passes through
the purge tanks and before being discharged? Will the pH of the discharge water match the pH of
the Marshyhope at the point of discharge?
d. Although the salmon in the purge tanks will not be fed during the purging process, they will be
excreting. The applicant has stated that the discharge water will be “significantly better than the
quality of the intake”. Have limits for nutrients and suspended solids for the discharge been
determined? Will testing for and removal of any pharmaceuticals, disinfectant products,
hormones, pathogens and/or parasites that may be used in the rearing process or found in the
rearing stock be required before the purge water is discharged to the Marshyhope Creek?
e. The information from the applicant states that 99% of the groundwater to be used in the RAS
system for rearing the salmon will be recirculated through the use of “Zero Water Change”
technology. What is the ultimate fate of the 1% of water not recirculated? Is that water included in
the “variable amounts of stormwater” that will also be discharged under this application?
f. Will a mixing zone be established for the proposed discharge? If a mixing zone is to be
established what would be the size of the mixing zone above and below the discharge point?
What will be testing, monitoring and reporting requirements for the proposed discharge?

6. The placement of the intake on the west side of the Marshyhope Creek from the original proposal on the
east side of the creek opens up a possible alternate withdrawal and discharge location on the west side of
the creek that should be investigated. Attached are two Google Earth images, one showing the location of
the AquaCon Maryland land base, proposed intake and discharge locations and the possible alternative
intake and discharge location and a second closer image of the proposed and alternative intake and
discharge locations. The two former gravel pit ponds on the north side of Maryland Route 313 are
approximately 6 and 3.5 acres in size. Relocating the intake and discharge locations to these ponds could
potentially provide the facility with all or a significant portion of the required purge water and avoid or
significantly minimize the potential for negative impacts to the Atlantic sturgeon, Atlantic sturgeon
critical habitat, resident and anadromous fish and other aquatic life in the Marshyhope Creek.
Discharging the treated purge water back into the ponds would also allow the facility to recirculate the
purge water to compliment the applicant’s plan to recirculate 99% of the water in the rearing tanks.

7. The applicants should consult with Mr. Karl Roscher in the Department’s Aquaculture Program
regarding the establishment of an aquaculture facility. Mr. Roscher can be reached at
[email protected] or (410) 260-8313.

8. If an intake in the Marshyhope Creek is authorized, then to minimize impacts to spawning fish species,
no water withdrawal from the Marshyhope Creek should be allowed unless the intake pipe is covered
with a filter having a nominal mesh size of one millimeter and that the intake velocity does not exceed
0.50 feet/second to minimize the potential to entrain fish eggs and/or larvae. The screening and intake
velocity requirements would need to be maintain year round at this location due to the various spawning
seasons and presence of fish larval stages. An intake in the ponds would not have these requirements.

The Department looks forward to continuing to work with MDE and the applicant on this project. If you have
any questions concerning these comments or if any of the above listed recommendations cannot be
implemented, please contact Roland Limpert at [email protected].

cc: B. Michael, DNR-RAS