20160225 Ver 2_Signed UMBI_20180307

AGREEMENT TO ESTABLISH THE CANE CREEK UMBRELLA MITIGATION BANKING INSTRUMENT IN THE
HAW- RIVER SUBWATERSHED FOR RIPARIAN BUFFER AND NUTRIENT OFFSET MITIGATION CREDITS
PURSUANT TO THE JORDAN LAKE NUTRIENT MANAGEMENT STRATEGY
TABLE OF CONTENTS
I.
PREAMBLE.........................................................................................................................................2
II.
LOCATION AND GEOGRAPHIC SERVICE AREA..................................................................................
2
III.
AUTHORITIES.....................................................................................................................................3
IV.
ESTABLISHMENT OF THE BANK PARCELS.........................................................................................
3
V.
BANK PARCEL DEVELOPMENT PACKAGE.........................................................................................5
Property Disposition & Long Term Management for Each Bank Parcel..........................................6
Financial Assurances for Each Bank Parcel......................................................................................6
VI.
POST CONSTRUCTION DOCUMENTATION FOR EACH BANK PARCEL..............................................7
As -Built Report.................................................................................................................................7
Financial Assurances for each Bank Parcel...................................................................................... 7
Monitoring and Maintenance..........................................................................................................8
Contingency Plans/Remedial Actions..............................................................................................9
VII.
CALCULATION OF MITIGATION CREDITS FOR EACH BANK PARCEL ................................................
9
RiparianBuffer Credits.....................................................................................................................9
NutrientOffset Credits.....................................................................................................................9
VIII.
CREDIT RELEASE SCHEDULE............................................................................................................11
IX.
PROCEDURE FOR DEBITING AND CREDITING.................................................................................12
CreditLedger..................................................................................................................................12
CreditProcessing...........................................................................................................................12
Mitigation Credit Transfer Certificates..........................................................................................13
X.
BANK PARCEL CLOSURE..................................................................................................................13
XI.
GENERAL PROVISIONS FOR EACH BANK PARCEL...........................................................................14
ATTACHMENTS
A — Division of Water Resources Authority Document
B — Delivered Credit Yield Table for Jordan Sub Watersheds dated December 20, 2012
C — Rule Text 15A NCAC 02B .0240
D — Rule Text 15A NCAC 02B.0295 (Effective November 1, 2015)
E — Jordan Lake Buffer Ledger Template
F —Jordan Lake Nutrient Offset Ledger Template
Page 1 of 15

I. PREAMBLE
This Cane Creek Umbrella Mitigation Banking Instrument ("Instrument") regarding the establishment,
use, operation, and maintenance of three (3) Nutrient Offset and Buffer Mitigation Bank Parcels,
identified in Section II, to provide Jordan Lake Riparian Buffer mitigation credits ("Riparian Buffer
Credits") and Jordan Lake Nutrient Strategy nutrient load reduction credits ("Nutrient Offset Credits")
is made and entered into by and among Wildlands Holdings IV, LLC acting as the Bank Sponsor
("Sponsor"), and the North Carolina Department of Environmental Quality - Division of Water
Resources ("DWR"). This Instrument is in accordance with 15A NCAC 02B.0240 and the Consolidated
Mitigation Rule 15A NCAC 02B .0295, which became effective on November 1, 2015 (Attachments C
and D).
The purpose of these Bank Parcels is:
A. To restore, enhancement and preserve riparian vegetation adjacent to streams and/or
agricultural ditches with the intent to improve water quality within the Haw River Sub -watershed
of the Jordan Lake Watershed.
B. To convert agricultural land uses within riparian areas adjacent to streams and/or agricultural
ditches into a dense, hardwood vegetated state with the intent to significantly reduce nutrient
loadings associated with agricultural practices into streams and ditches.
C. To provide mitigation and sell any resulting Riparian Buffer Credits and/or Nutrient Offset Credits
to third parties in the Haw River Sub -watershed for development (both existing and proposed)
requiring such mitigation.
II. LOCATION AND GEOGRAPHIC SERVICE AREA
A. The Geographic Service Area ("GSA") is the designated area wherein a Bank can reasonably be
expected to sell Riparian Buffer Credits and/or Nutrient Offset Credit for impacts due to
development activities.
B. The GSA for this instrument is limited to the Haw River Sub -watershed of Jordan Lake as defined
in rule 15A NCAC 02B.0262.
C. Sale or transfer of Riparian Buffer Credits shall be limited to the Haw River sub -watershed of the
Jordan Lake watershed, as defined in Rule 15A NCAC 02B .0262, unless otherwise authorized by
the DWR or delegated local government in accordance with 15A NCAC 026 .0295.
D. Sale or transfer of delivered Nutrient Offset Credits shall also be limited to the Haw River sub -
watershed of the Jordan Lake watershed, as defined in Rule 15A NCAC 02B .0262 and in
accordance with 15A NCAC 02B.0240.
Page 2 of 15

E. The following table provides site-specific details of each of the three Bank Parcels proposed under
this Instrument, all are within the Haw River Sub -watershed of Jordan Lake;
Table 1.0—Site-specific Details
Bank Parcel
14 -Digit USGS
Project
Named Receiving
Name
County
Hydrologic Unit Code
Location
Stream
Primary Land Use/s
South Fork
Chatham
03030002050050
35.82258
South Fork Cane
Cattle Pasture
-79.38184
Creek
Bethel Branch
Chatham
03030002050050
35.83092
South Fork Cane
Cattle Pasture
-79.36687
Creek
Chatham
Pine Hill
and
03030002050050
35.84711
Pine Hill Branch
Soybean fields and
Branch
Alamance
-79.38704
Pasture
III. AUTHORITIES
A. The Bank Parcels will be used to provide Riparian Buffer Credit and Nutrient Offset Credit in
accordance with the requirements in the DWR Authority document referenced herein as
"Attachment A" and attached to this Instrument.
B. Projects eligible for utilization of the credits are those requiring authorization under the
requirements of Attachment A and any subsequently approved North Carolina statutes and rules
for the Jordan Lake Nutrient Sensitive Water Management Strategy.
C. The selling of mitigation credits generated from the Bank Parcels approved under this Instrument
shall be consistent with approved North Carolina statutes and rules for the Jordan Lake Nutrient
Sensitive Waters Management Strategy.
D. Mitigation activities proposed under this Instrument and corresponding Bank Parcel Development
Packages (BPDP) to generate Riparian Buffer Credits and Nutrient Offset Credits shall be
consistent with North Carolina statutes and rules for the Jordan Lake Nutrient Sensitive Waters
Management Strategy that are in place at the time a complete BPDP is submitted to DWR.
IV. ESTABLISHMENT OF THE BANK PARCELS
A. In accordance with 15A NCAC 02B .0295 and 15A NCAC 02B .0240, DWR has provided a "Site
Viability Letter" for each of the Bank Parcels proposed under this Instrument. The Site Viability
Letter is not an approval of the site to generate mitigation credits, but is a preliminary review of
the Bank Parcel that details and confirms existing land use conditions, defines the riparian sites
(Enhancement Preservation, or Restoration), and identifies features (streams, ditches, ponds,
etc.) that meet general criteria to be suitable to generate mitigation credits. Table 2.0 below
outlines when a Site Viability Letter was issued by NCDWR for the mitigation sites proposed under
this Instrument:
Page 3 of 15

Table 2.0 — Site Viability Letter Details
Bank Parcel
NC DWR Site Visit
Viability Letter
Viability Letter
Received
Expiration Date
South Fork
August 9, 2017
August 16,
August 16, 2019
2017
Bethel Branch
August 9, 2017
August 23,
August 23, 2019
2017
Pine Hill Branch
September 20,
October 26,
October 26, 2019
2017
2017
B. A valid Site Viability Letter is required prior to submittal of each BPDP. Site Viability Letters will
either expire on the dates listed in the table above or upon submittal of an individual As -Built
Report to the DWR, whichever comes first. If a Site Viability Letter expires prior to submittal of a
complete BPDP as described in Section V to DWR, then the Sponsor must submit a formal request
to DWR for a new Site Viability Letter for that Bank Parcel.
C. The Bank Parcels proposed for inclusion under this Instrument shall require a Bank Parcel
Development Package ("BPDP") be submitted to, and approved, by the DWR prior to use of the
individual Bank Parcel for mitigation purposes or the sale or transfer of any associated credits.
The contents of each BPDP are provided in Section V.
D. These three (3) Bank Parcels are also proposed under the Cane Creek Umbrella Mitigation Banking
Instrument (Cane Creek UMBI), United States Army Corps of Engineers (USACE) Action ID #SAW -
2016 -00219 for stream and wetland mitigation. The Cane Creek UMBI for all three (3) sites and
the site-specific Mitigation Plan for the South Fork Site, were submitted to the IRT for review and
approval.
E. Each BPDP submitted under this instrument will be placed on public notice and made available
for public commenting for 15 calendar days.
F. Most of the Riparian Buffer Credits on these Bank Parcels will be generated along restored stream
channels that are proposed for stream mitigation. Stream Mitigation Plans will be submitted
under the Cape Fear 02 UMBI referenced in "D" in this section. Additionally, all activities
conducted within riparian buffers and adjacent riparian areas for purposes of generating Riparian
Buffer Credits will be conducted in concurrence with stream mitigation activities. In general, the
Bank Sponsor expects all buffer mitigation credits to be generated through restoration,
enhancement and/or preservation of DWR riparian buffers as they are defined in 15A NCAC 02B
.0267, and other riparian areas as allowed per 15A NCAC 02B .0295 (n) and (o). Riparian Buffer
Credits are only attainable if the width of the mitigated area is at least 20 feet as measured
perpendicular from top of banks.
G. The Bank Parcels are intended to provide Jordan Lake Riparian Buffer Credit as follows:
1. Planting hardwood trees and shrubs on a Restoration Site as defined in 15A NCAC 02B
.0295 (b) adjacent to streams.
2. Maintaining a Preservation Site as defined in 15A NCAC 02B .0295 (b) along streams as
allowed in 15A NCAC 02B .0295 (o) by placing a conservation easement around riparian
areas.
Page 4 of 15

3. Enhancing riparian areas that are being grazed by cattle by installing fencing to
permanently exclude cattle from the streams and their associated riparian areas as
allowed in 15A NCAC 02B.0295 (o)(6).
4. Diffused flow will be maintained onsite to the maximum extent practicable.
H. Nutrient Offset Credit may be achieved on these Bank Parcels through restoration of riparian
areas, where agriculture is the predominant land use. The width of the restoration area begins at
the most landward limit top of the bank or the rooted herbaceous vegetation and extends
landward a minimum of 50' and a maximum of 200 feet on all sides of the surface waters.
I. The Bank Parcels will provide Nutrient Offset Credit in accordance with 15A NCAC 02B .0240 and
are expected to provide Nutrient Offset Credit as follows:
1. Converting agricultural land uses within riparian areas to non-agricultural land uses.
2. Installing fencing to permanently remove livestock from the riparian areas and streams.
3. Planting hardwood trees and shrubs on a Restoration Site as defined in 15A NCAC 02B
.0295 (b) adjacent to streams where agriculture has been determined to be the
predominant land -use.
J. All three of the Bank Parcels submitted for review under this Instrument are anticipated to begin
construction of stream and wetland mitigation activities in Fall 2018.
V. BANK PARCEL DEVELOPMENT PACKAGE
A. All Bank Parcel Development Packages (BPDP) submitted under this Instrument shall be submitted
to DWR for review and must be approved by DWR prior to any construction on the Bank Parcel.
The BPDP must describe any changes that have occurred to the site between the date of the Site
Viability Letter and the date the BPDP is submitted to DWR. The BPDP shall include detailed
information consistent with the sections below concerning; 1) site location (14 -digit HUC is
required); 2) existing conditions with current photos; 3) proposed buffer mitigation and nutrient
offset activities including a detailed vegetation plan; 4) monitoring and maintenance plans; 5)
financial assurances; 6) associated buffer mitigation/nutrient credit calculations, which shall
include credit generation, service area, and accounting as appropriate for each regulatory
authority; 7) stream buffer determination letter from DWR; 8) Site Viability Letter from DWR; 9)
a figure depicting the proposed stream and wetland mitigation areas; and 10) service area figure
for each mitigation type.
B. The Sponsor will obtain all applicable federal, state and local documentation, permits, or
authorizations needed to construct and maintain the Bank Parcel. This Instrument does not
qualify as, or substitute for, such documentation, permit, or authorization.
C. Any restoration and/or enhancement activities or proposed construction within the riparian
buffers and other riparian areas on the Bank Parcel to produce Riparian Buffer Credit or Nutrient
Offset Credit must be approved by DWR in writing prior to implementation. The failure of the
Sponsor to comply with this requirement may result in a revised or reduced credit release
schedule for that specific Bank Parcels. All restoration and enhancement activities must be
performed in concurrence with any stream or wetland mitigation activities and not before.
Page 5 of 15

D. Requests for deviation from the approved BPDP must be submitted to DWR in writing. Written
approval from the DWR must be received prior to implementing any deviation from the approved
BPDP.
Property Disposition & Lone Term Management for Each Bank Parcel
E. Prior to the release of any credits, the Sponsor shall record permanent conservation easements
at the County Register of Deed's office in the county in which the Bank Parcel is located that is
sufficient to ensure protection, operation, and maintenance of restored riparian buffers and other
riparian areas for the duration specified in the approved BPDP.
F. The form of the conservation easement shall be consistent with the standards employed by the
State of North Carolina in the protection of restored riparian buffers and riparian areas and shall
be approved by the DWR and Army Corps of Engineers (ACOE) prior to the release of any credits.
G. The Sponsor shall not grant additional easements, right of ways, or any other property interest in
or to the project areas, without prior approval from the DWR.
H. The Sponsor agrees to transfer or assign the conservation easement and its interests in perpetuity
to a qualified holder under NC General Statute ("GS") 121-34 et seq. and 170(h) of the Internal
Revenue Code prior to the submittal of the Year 4 Monitoring Report. The holder shall be a land
trust or stewardship program that will hold and enforce the conservation easement and the
interests in perpetuity. The Sponsor shall choose a land trust or stewardship program that is
accredited by the Land Trust Accreditation Commission and/or has been approved by DWR prior
to the end of the fourth year monitoring period. A land trust must be certified under 501(c)(3) of
the Internal Revenue Code.
In the event the Sponsor is also the owner of the underlying fee interest in the property the
conveyance of the conservation easement to a land trust or stewardship fund must be arranged
at the outset of the approved BPDP.
Financial Assurances for Each Bank Parcel
J. Following approval of the BPDP for each Bank Parcel, the Sponsor shall provide
Performance/Maintenance Bonds from a surety company that is rated no less than an "A-" as
rated by A.M. Best, to construct the sites according to the approved BPDPs. It is the Sponsor's
responsibility to confirm that the surety company is rated no less than an "A-" with each annual
bond renewal.
K. The amount of each Performance Bond shall be 100% of the estimated cost for implementation
of the mitigation activities of the Bank Parcel as described in the approved BPDP. No bond shall
be less than $150,000.00 to cover construction costs.
L. Alternatively, in lieu of posting a Performance Bond, the Sponsor may elect to construct the
project prior to the first credit release.
M. For each Bank Parcel, once DWR has released all credits for completion of all the items listed
below, then the Bank Sponsor will be released from its performance obligations under the
performance bond required in Item J and K of this section:
Page 6 of 15

1. Instrument and BPDP Approved by DWR, Conservation Easement Recorded, Financial
Assurance Posted;
2. Mitigation Site Earthwork and Planting and Installation of Monitoring Devices Completed;
3. As -Built Report as described in Section VI has been received by DWR; and
4. DWR has submitted a written approval of the As -Built Report
N. To comply with this section, DWR must be the Obligee on all performance bonds.
VI. POST CONSTRUCTION DOCUMENTATION FOR EACH BANK PARCEL
As -Built Report
A. The Sponsor agrees to perform all necessary work, in accordance with the provisions of this
Instrument and corresponding BPDPs, to establish, maintain, and monitor Jordan Lake Riparian
Buffers or other riparian areas until Items B (1) and (2) of Section X have been satisfied.
B. When all stream and wetland mitigation activities have commenced, the Sponsor will submit an
as -built plan and report for each Bank Parcel separately within 30 calendar days after completing
the riparian buffer and nutrient offset mitigation activities. Each As -Built report will describe any
deviation from the approved BPDP and will document the following:
1. Buffer restoration and enhancement planting details, confirmation of fence installation,
invasive species control, monitoring device locations, vegetation plot locations, and photo
point locations.
2. Provide confirmation that the construction of all stream and wetland mitigation activities
have been completed.
3. Boundary Survey of the conservation easement area, signed and sealed by a licensed
surveyor, including an inventory of the final mitigation areas for riparian buffer and/or
nutrient offset mitigation credits in both square feet and acres.
4. As -built map of the mitigation area showing where riparian restoration, enhancement
and preservation were performed and any deviations to the Bank Parcel from what was
approved in the BPDP.
5. Aerial map of the mitigation that was included in the approved BPDP.
6. As -built map of the stream and/or wetland mitigation areas.
Financial Assurances for each Bank Parcel
C. After completion of the restoration/construction on each Bank Parcel, a separate Performance/
Maintenance Bond will be secured for 100% of the estimated cost to implement the monitoring
and maintenance plan as described in the approved BPDP and As -Built Report. The Bond must be
from a surety company that is rated no less than an "A-' as rated by A.M. Best, and it is the
Page 7 of 15

Sponsor's responsibility to confirm the surety company is still rated no less than an "A-" with each
annual bond renewals.
D. A Performance/Maintenance Bond shall be secured each year for a minimum of five years, and
until DWR has released all mitigation credits to the Bank Sponsor. Upon DWR approval, the bond
may be lowered each year based on the adjusted cost to complete the monitoring. No bond shall
be less than $100,000 to cover monitoring and maintenance costs.
For each Bank Parcel, once DWR has released 100% of all credits for completion of all Bank Parcel
milestones described in Table 5 of Section VIII and in the corresponding BPDP, the Bank Sponsor
will be released from its performance obligations under the performance bond required in C and
D in this section.
F. To comply with this section, DWR must be the Obligee on all performance bonds.
Monitoring and Maintenance
G. The Sponsor shall monitor the Bank Parcel as described in the BPDP until such time as DWR
determines that the performance standards described below have been met. The monitoring
period shall be a minimum of five consecutive years.
H. Performance Standards for Vegetation: Native hardwood trees or native hardwood tree and shrub
species should be planted at a density sufficient to provide 260 stems per acre after five years. A
minimum of four (4) native hardwood trees or four (4) native hardwood tree and shrub species
must be planted. No one species shall be greater than 50% of the planted stems. A list of species
for planting will be detailed in the BPDP for approval. Native hardwood tree volunteer species
may be included to meet performance standards as determined by the DWR.
I. A "stem" means a woody seedling, sapling, shrub or tree, no less than 10 centimeters in height.
J. If the performance standards of the vegetation are not met, supplemental plantings may be
required. Supplemental plantings will be utilized until the required densities rave been achieved
and maintained for five years. Bank Parcel maintenance, such as ensuring diffused flow, managing
invasive species, and pest control will be included in the BPDP.
K. Monitoring Reports for Riparian Buffer Credit and Nutrient Offset Credit: Reporting criteria of
the vegetation shall be based on the Carolina Vegetation Survey (CVS) - EEP Protocol for Recording
Vegetation Level 2 Plot Sampling only version 4.0 or any updated versions of this protocol in place
at the date of acceptance of the BPDP. The Sponsor shall submit to the DWR an annual monitoring
report no later than December 31 of each year for a minimum of five consecutive years after the
first full growing season. This report will describe the conditions of each Bank Parcel, including an
evaluation of the performance standards of the vegetation contained within the approved BPDP.
Reports shall contain the following:
1. A U.S. Geological Survey map showing location of the Bank Parcel;
2. A detailed narrative with supporting photos summarizing the condition of the Bank Parcel
along with any maintenance or remediation performed that year; and
Page 8 of 15

3. A map, survey, or other figures showing locations of sampling plots, permanent photo
points, and location of transects, Etc.; and
4. Monitoring data, including specific vegetation counts showing that the trees or tree and
shrub species planted are meeting performance standards and updated photographs; and
5. A copy of the most recent Bank credit/debit lodgers; and
6. Corresponding verification letters from designated local governments upon request; and
7. Corresponding Mitigation Transfer Certificates upon request; and
8. Proof of performance bond renewal to cover the next monitoring year (when applicable).
Contingency Plans/Remedial Actions
L. In the event a Bank Parcel fails to achieve the performance criteria described in this Instrument
and in the approved BPDP, the Bank Sponsor shall develop necessary contingency plans in
coordination with the DWR and implement appropriate remedial actions for the Bank Parcels and
the Bank. Depending on the degree remedial actions required, the DWR may modify the
monitoring period.
VII. CALCULATION OF MITIGATION CREDITS FOR EACH BANK PARCEL
Riparian Buffer Credits
A. All Riparian Buffer Credits shall be determined based on the ratios and percentages provided in
15A NCAC 026 .0295 (m) and (n).
B. Riparian buffer restoration as defined in 15A NCAC 026 .0295 and performed on agriculture lands
within the Bank Parcels, may be used for either Riparian Buffer Credit or Nutrient Offset Credit
but not both. Riparian restoration on non -agriculture lands can only be used for Riparian Buffer
Credit.
C. Riparian buffer enhancement on these Bank Parcels, as described in 15A NCAC 02B .0295 (o)(6),
can only be used for Riparian Buffer Credit,
D. Riparian buffer preservation on the Bank Parcel, as described in 15A NCAC 02B .0295 (o)(5) and
defined in 15A NCAC 02B .0295 (b), can only be used for Riparian Buffer Credit.
E. Riparian Buffer Credit is defined as one (1) buffer credit per one square foot or 43,560 buffer
credits per one acre.
F. Pursuant to 15A NCAC 02B .0295 (1)(6)(B), 'Buffer mitigation credit shall not be generated within
wetlands that provide mitigation credit required by 15A NCAC 02H .0506".
Nutrient Offset Credits
G. The acreage of Nutrient Offset Credits on all three (3) Bank Parcels submitted under this
Instrument is determined by applying the applicable ratio as provided in 15A NCAC 02B .0295 (m)
for a Restoration Site. All riparian areas proposed for Nutrient Offset Credits must be a minimum
of fifty (50) feet from the top of the stream banks.
Page 9 of 15

H. Nutrient Offset Credits cannot be achieved on the Bank Parcels in areas where preservation
activities are performed or where enhancement is proposed under 15A NCAC 0213 .0295 (0)(6).
I. Nutrient Abatement of Restored Riparian Areas on Agricultural Lands: The Sponsor and DWR
agree to the following:
1. Pursuant to the Jordan Trading Rule Item 15A NCAC 028 .0273 (2)(a), load reductions
eligible for credit are only those that exceed reduction needs calculated by applying the
strategy sub -watershed percentage reduction goals as provided in 15A NCAC 02B .0262
(5). For the Haw River Sub -watershed, this requirement results in a reduction of credits
yielded per acre for restored riparian buffers when compared with the credit given in
other river basins. Table 3.0 below lists the generated credit per acre of restored riparian
buffer for the Haw -River Sub -watershed.
Table 3.0 - Generated credit yield for forest buffer restoration in the Haw Sub -watershed
Credit Generated (lbs. / 30 yrs. / ac.)
Jordan Lake Sub -watershed Nitrogen Phosphorus
Haw River 2,249.36 143.81
J. As required under Jordan Trading Item 15A NCAC 02B .0273 (2)(d)(i), the party seeking to sell
credits must account for differences in instream nutrient losses between the location of the
reduction need and excess loading reduction being delivered to the affected area of Jordan Lake.
Attachment B produced the delivered Jordan Lake Total Nitrogen (TN) and Jordan lake Total
Phosphorous (TP) credit yields per acre of buffer restoration by each Jordan Lake 14 -Digit HUC
sub -watershed.
1. Delivered credits are calculated by applying the delivery factors in Table 4.0 below and
the acreage of riparian restoration to the generated credit yields from Table 3.0 above.
The delivery factors for each of the three (3) Bank Parcels under this Instrument for Total
Nitrogen (TN) and Total Phosphorus (TP) are provided in Table 4.0 below using
Attachment B for reference. The amount of delivered credits for each Bank Parcel will be
detailed in the BPDP for each Bank Parcel.
Table 4.0 - Delivery Factors
--- -Delivery---'
Factors
Bank Parcel
TN TP
South Fork
- - --
71% 67%
_ - --
-- --
�-
BehBran
t el ch
— _
71% I 67%
--- --
Pine Hill Branch
---
71% 67%
The Bank Sponsor shall report the pounds of nitrogen and phosphorus credit per acre of
restored riparian buffer in each Bank Parcel's BPDP for both credits generated at the site of
the nutrient reduction activity and the credits delivered to Jordan Lake.
Page 10 of 15

K. The Sponsor and DWR agree the methodology and calculations for determining nitrogen and total
phosphorous reduction, associated with restoration of riparian areas as described in Section IV of
this Instrument, shall be fixed as part of the approval of this Instrument, with the fixed amount
not changing during the Bank Parcel Development or credit release schedule for each Bank Parcel
unless the viability letter for that Bank Parcel has expired.
VIII. CREDIT RELEASE SCHEDULE
A. Upon submittal of all appropriate documentation by the Sponsor, and subsequent approval by
DWR, it is agreed that the mitigation credits associated with each individual Bank Parcel will
become available for sale to a third party in accordance with Credit Release Schedules.
B. A Credit Release Schedule shall be provided in each site-specific BPDP included in this Instrument
and shall outline Bank Parcel milestones expected to be completed for each mitigation bank.
Credit Release Schedules approved in the BPDP will be based on the completion of these Bank
Parcel milestones.
C. In general, Bank Parcel milestones and the percentage of credits most often released upon
completion are described in Table 5.0 below:
Table 5.0 - Credit Release Schedule for Nutrient Offset Credits at Tiger Swamp Mitigation Bank
Task
Project Milestone
% Credit Available
for Sale
1
Instrument and BPDP Approved by DWR, Conservation Easement
Recorded* and Financial Assurance Posted
20
Mitigation Site Earthwork, Planting and Installation of Monitoring Devices
-
2
Completed
20
3
Monitoring Financial Assurance Posted and Approval of As -Built Report
i
10
Monitoring Report #1: Approved by the DWR** & financial assurance
4
renewed
10
Monitoring Report #2: Approved by the DWR** & financial assurance
5
renewed
10
6
Monitoring Report #3: Approved by the DWR** & financial assurance
renewed
10
Item
tDWR1) of Section X in this Instrument has been completed and approved
2
by
S
No remaining
credits will be released until the conservation easement has been assigned
to an approved
land trust or stewardship
Monitoring Report #4: Approved by the DWR** & financial assurance
y
renewed
5
Monitoring Report #S: Approved by the DWR** and final site visit by DWR
9
has been conducted
10
- Total
100%
* For specification, please see Section V in this Instrument
** DWR approval provided upon a determination that the site is meeting success criteria contained within the approved
BPDP
D. DWR may modify Credit Release Schedules based on the information submitted or the order in
which required information is received. DWR will notify the Sponsor of any modification to the
credit release schedule.
Page 11 of 15

E. DWR may consider a Credit Release Schedule for a Bank Parcel based on the extent of change
between current onsite conditions and proposed post construction conditions.
The Sponsor must initiate implementation of the approved BPDP for each site under this
Instrument in concurrence with all stream and/or wetland mitigation activities proposed in the
approved Mitigation Plans referenced in Item D of Section IV of this Instrument.
IX. PROCEDURE FOR DEBITING AND CREDITING
Credit Ledger
A. The Bank Sponsor shall maintain a credit ledger for each mitigation type for each Bank Parcel
under this Instrument: Credit ledgers shall provide the accounting for Riparian Buffer Credits in
square feet and acres, and Nutrient Offset Credits in pounds and acres.
B. Each credit ledger shall be submitted on a separate 8 % in. x 11in. spreadsheet with legible font
style and font size. All ledgers shall be submitted using the templates provided in Attachments E
and F of this Instrument or any updated versions to these templates as provided by DWR.
Credit Processine
C. Riparian Buffer Credits generated on these Bank Parcels will be used to provide mitigation for
authorized buffer impacts within the Haw River Sub -watershed of Jordan Lake in accordance with
15A NCAC 026 .0295 (g).
D. Nutrient Offset Credits generated on these Bank Parcels will be used to offset nitrogen and
phosphorus nutrient loads within the Haw River Sub -watershed of Jordan Lake in accordance with
15A NCAC 0213 .0240.
E. Available mitigation credits (credits that have been released by DWR but not sold by the Sponsor)
that are generated from riparian buffer restoration as defined in 1SA NCAC 02B .0295 (b) and
described in 15A NCAC 02B .0295 (n) on agricultural land, can be converted and transferred from
Riparian Buffer Credits to Nutrient Offset Credits and from Nutrient Offset Credit to Riparian
Buffer Credits upon written approval from DWR.
F. Riparian Buffer Enhancement and Preservation credits generated on these three (3) Bank Parcels
are not transferrable into nutrient offset credits.
G. The Bank Sponsor shall obtain written verification of buffer mitigation required from the
delegated local government in the Haw River Sub -watershed or DWR prior to debiting Riparian
Buffer Credit from the individual Bank Parcel.
H. The Bank Sponsor shall obtain written verification of nutrient offset need from a designated local
government in the Haw River Sub -watershed prior to debiting Nutrient Offset Credits from the
individual Bank Parcel.
All credit and debit transactions for each Bank Parcel under this Instrument shall be accurately
depicted in the credit ledgers. The Sponsor shall submit accurate and up-to-date credit ledgers
Page 12 of 15

for each Bank Parcel by the tenth (10t1) of each month. At a minimum and only upon request,
DWR shall receive a hard copy of updated credit ledgers along with corresponding Mitigation
Credit Transfer Certificates and all corresponding letters from the designated local governments
or DWR where applicable once a year. Notification of all credit sales shall be provided to DWR
until all credits that have been released have been sold.
Mitigation Credit Transfer Certificates
All credit sales will include a Mitigation Credit Transfer Certificate ("Certificate") that is required
to be provided to the buyer of Riparian Buffer and/or Nutrient Offset credits, that will include, at
a minimum, the following information;
Bank Details: (1) Sponsor Name, (2) Bank Parcel name as it appears in this Instrument and,
(3) DWR project number for the BPDP.
2. Credit Details: (1) date of receipt, (2) identify if full or partial payment, (3 – when
applicable) amount of nitrogen credits purchased in pounds and confirmation from the
designated local government of the amount required, (4 — when applicable) amount of
phosphorous credits purchased in pounds and confirmation from the designated local
government of the amount required, and (5 - when applicable) amount of Riparian Buffer
Credits purchased in square feet and the confirmation from DWR orthe local government
of the amount required.
3. Project Details: (1) project name as it appears on DWR or local government permits
and/or certifications, (2) 14 -digit HLIC, (3) the sub -watershed within the Jordan Lake, (4)
the nutrient strategy applicable to the project, (5) - when applicable) designated local
government requiring Nutrient Offset Credits, and/or (6) DWR authorization number or
delegated local government requiring Riparian Butter Credits for this project.
K. If the DWR determines the Bank is operating at a deficit (e.g. the Sponsor is closing on sales and/or
transferring credit that is not available), or the Bank is selling credits out of compliance with
statutes, rules or this Agreement, the sale/transfer of credits will immediately cease, and the
DWR, in consultation with the Sponsor, will determine what remedial actions are necessary.
X. BANK PARCEL CLOSURE
A. Bank Parcel Closure shall be identified as the event when the Sponsor is relieved of all its
responsibilities to the Bank Parcel and there are no mitigation credits left to sell.
B. Bank Parcel Closure shall commence only after all the following events have occurred,-
1.
ccurred;
1. Transfer or assign the conservation easement and all its interests, in perpetuity, to a land
trust or stewardship program as described in Section V of this instrument.
2. All five years of monitoring completed and all monitoring reports submitted and approved
by DWR.
3. All credits have been released and debited and updated ledgers showing zero credit
balances have been submitted and approved by DWR.
Page 13 of 15

XI. GENERAL PROVISIONS FOR EACH BANK PARCEL
A. Upon the presentation of proper credentials, and during normal business hours, the Sponsor and
the landowner shall grant permission to the Director of DWR, or an authorized representative of
the Director of DWR to enter the property containing the Bank Parcel(s).
B. Amendments: This Banking Instrument maybe amended or modified only with written approval
of all signatory parties, including the USACE if it is applicable to the amendment.
C. Any transfer of the Sponsor's rights or obligations outlined in this Instrument or any other
agreement referenced in this Instrument to a third party must be approved by DWR prior to the
transfer.
D. Force Majeure: After 100% of all the credits have been released in accordance with the credit
release schedule in the BPDP and confirmation has been received by the DWR that the
Conservation Easement has been successfully assigned in compliance with Item H of Section V,
the Sponsor will not be responsible for Bank failure that is attributed to natural catastrophes
including but not limited to flood, drought, disease, regional pest infestation, etc. that are beyond
the control of the Sponsor.
E. However, if an event occurs before 100% of all the credits have been released in accordance with
the credit release schedule in Section VIII, the Sponsor shall take remedial action to restore the
property to its condition prior to the event, in a manner sufficient to provide adequate mitigation
to cover credits that were sold prior to the occurrence of the event. Such remedial action shall be
taken by the Sponsor only to the extent necessary and appropriate, as determined by DWR and
the Sponsor.
DWR must concur in writing that a force majeure event has occurred for this provision to apply.
F. Oversight: Actions taken by DWR may include, but are not limited to, the following:
1. Site visits,
2. Issuance of Site Viability Letters,
3. BPDP review and approval of items listed in Section V of this Instrument,
4. As -Built report review and approval of items listed in Section VI of this Instrument,
5. Monitoring Report review and approval of items listen in Section VI of this Instrument,
6. Credit Ledger review and approval of items listen in Section IX of this Instrument,
7. Certificate review of items listed in Section IX of this Instrument and cross analysis to
credit ledgers and,
8. Information requests, file reviews and audits.
Reports, ledgers, files and other information shall be made available to DWR upon request, unless
otherwise specified in this or any other document.
G. Validity of this Instrument: This Instrument will become valid on the date of the last party's
signature.
Page 14 of 15

H. Specific language of this Instrument Shall Be Controlling: To the extent that specific language in
this document changes, modifies, or deletes terms and conditions contained in those documents
that are incorporated into the Instrument by reference, and that are not legally binding, the
specific language within the Instrument shall be controlling.
I. Any disputes over decisions regarding this Instrument, shall be referred to the Director of DWR
for a decision. The Director's decision is subject to review as provided in Articles 3 and 4 of G.S.
150B.
J. This Agreement shall be binding upon the parties and is entered into knowingly, intelligently and
voluntarily.
K. Notices: All Notices and other communication which may be or are required to be given or made
by any party to the other shall be in writing and shall be deemed to have been properly given 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 below or at such other addresses as
specified by written notice delivered in accordance herewith.
If to Bank Sponsor: Wildlands Holdings IV, LLC
1430 South Mint Street, Suite 104
Charlotte, NC 28203
If to DWR: NC Division of Water Resources
Attn: 401 & Buffer Permitting Branch
1617 Mail Service Center
Raleigh, NC 27699-1617
L. Applicable Law: This Agreement shall be construed under the laws of the State of North Carolina.
WILDLANDS HOLDINGS IV, LLC
By: S 0.Wrj b- N 1' 1 Kers0a (Print)
(Signature)
Title: GIVtiACt (iY"
Date: 2' .10
*_O l 7l1 g
NORTH CAROLINA DEPARTMENT OF ENVIRONMENTAL QUALITY – DIVISION OF WATER RESOURCES
By: 1 , r�� 1P00C-f" (Print)
L! ........................... (Signature)
Title: �ti�e ��/i roc Flu. -JW'C L J—
Date:' !) t -
Page 15 of 15

Updated
Nutrient Offset Program & Buffer Mitigation Program 09/15/2015
UMBI Authorities for Wildlands Holdings IV, LLC effective 02/09/2018
ATTACHMENT A
Authorities pertaining to the Cane Creek Umbrella Mitigation Banking Instrument
All Basins
General Statutes:
G.S. § 143-214.11 Ecosystem Enhancement Program
G.S. § 143-214.26 Nutrient Offset Credits
G.S. § 143-214.20-24 Riparian Buffer Protection Program
G.S. § 143-214.7 Stormwater runoff rules and programs
G.S. § 143-215.8B Basinwide Water Quality Management Plans
Session Laws
S.L. 2015-246
S.L. 2015-149
S.L. 2014-90
S.L. 2014-120
S.L. 2013-413
S.L. 2013-121
S.L. 2013-265
S.L. 2012-200 (Amendment to G.S. §143-214.23 and G.S. §143-215.1)
S.L. 2011-343 (Amendment to G.S. §143-214.11)
S.L. 2009- 337 (Amendment to G.S. §143-214.11)
Administrative Rules:
15A NCAC 02B .0202 Definitions
15A NCAC 02B .0223 Nutrient Sensitive Waters
15A NCAC 02B .0237 Best Management Practice Cost -Effectiveness Rate
15A NCAC 02B .0240 Nutrient Offset Payments
15A NCAC 02B .0295 Mitigation Program Requirements for Protection and Maintenance of Riparian Buffers
Jordan Buffer and Jordan Water Supoly Nutrient Strate
General Statutes and Session Laws:
G.S. §143-214.5 Water Supply Watershed Protection)
S.L. 2013-395
S.L. 2012-201
S.L. 2012-200 S.L. 2012-187
S.L. 2009-216
S.L. 2009484
S.L. 2006-259 (Section 31(a))
S.L. 2005-190
S.L. 1999-329 (part of G.S. 143B-282)
Administrative Rules:
15A NCAC 2B .0262 Purpose and Scope
15A NCAC 2B .0263 Definitions
15A NCAC 2B .0264 Agriculture
15A NCAC 2B .0265 Stormwater Management for New Development
15A NCAC 2B .0267 Jordan Water Supply Nutrient Strategy: Protection of Existing Riparian Buffers
15A NCAC 2B .0270 Wastewater Discharge Requirements
15A NCAC 213 .0271 Stormwater Requirements for State and Federal Entities
15A NCAC 2B .0272 Fertilizer Management
15A NCAC 2B .0273 Options for Offsetting Nutrient Loads

Jordan Water Supply Nutrient Strategy Updated
Delivered Credit Yield Table for Jordan Sub Watersheds 1 12/20/2012
Attachment B
Delivered credit yields for buffer acres in Jordan small watersheds.
Watershed ID
Jordan
Subwatershed
Delivery Factors
TN TP
TN Credit
(lbs/30yrs)
TP Credit
(lbs/30yrs)
03030002010010
Haw
25% 10%
562.34
14.38
03030002010020
Haw
37% 36%
832.26
51.77
03030002010030
Haw
44% 40%
989.72
57.52
03030002010040
Haw
49% 44%
1102.19
63.27
03030002010050
Haw
55% 48%
1237.15
69.03
03030002020010
Haw
15% 4%
337.40
5.75
03030002020020
Haw
22% 12%
494.86
17.26
03030002020030
Haw
48% 43%
1079.69
61.84
03030002020040
Haw
32% 33%
719.80
47.46
03030002020050
Haw
32% 32%
719.80
46.02
03030002020060
Haw
47% 42%
1057.20
60.40
03030002020070
Haw
54% 47%
1214.66
67.59
03030002030010
Haw
60% 56%
1349.62
80.53
03030002030020
Haw
44% 31%
989.72
44.58
03030002030030
Haw
25% 8%
562.34
11.50
03030002030040
Haw
42% 30%
944.73
43.14
03030002030050
Haw
64% 62%
1439.59
89.16
03030002030060
Haw
39% 19%
877.25
27.32
03030002030070
Haw
36% 18%
809.77
25.88
03030002030080
Haw
73% 64%
1642.04
92.04
03030002040010
Haw
30% 14%
674.81
20.13
03030002040020
Haw
28% 14%
629.82
20.13
03030002040030
Haw
71% 63%
1597.05
90.60
03030002040040
Haw
32% 15%
719.80
21.57
03030002040050
Haw
52% 50%
1169.67
71.90
03030002040060
Haw
54% 51%
1214.66
73.34
03030002040070
Haw
67% 60%
1507.07
86.28
03030002040080
Haw
53% 51%
1192.16
73.34
03030002040090
Haw
54% 51%
1214.66
73.34
03030002040100
Haw
75% 65%
1687.02
93.47
03030002040110
Haw
66% 60%
1484.58
86.28
03030002050010
Haw
74% 68%
1664.53
97.79
03030002050020
Haw
81% 74%
1821.98
106.42
03030002050030
Haw
42% 17%
944.73
24.45
03030002050040
Haw
80% 73%
1799.49
104.98
Page 1 of 2

Jordan Water Supply Nutrient StrategyI Updated
Delivered Credit Yield Table for Jordan Sub Watersheds 12/20/2012
Watershed ID
Jordan
Delivery Factors
TN Credit
TP Credit
Subwatershed
TN TP
(lbs/30yrs)
(lbs/30yrs)
03030002050050
Haw
71% 67%
1597.05
96.35
03030002050060
Haw
79% 73%
1777.00
104.98
03030002050070
Haw
78% 72%
1754.50
103.54
03030002050080
Haw
80% 73%
1799.49
104.98
03030002050090
Haw
79% 73%
1777.00
104.98
03030002050100
Haw
81% 75%
1821.98
107.85
03030002060010
Haw
81% 74%
1821.98
106.42
03030002060020
Haw
95% 97%
2136.90
139.49
03030002060030
Haw
88% 91%
1979.44
130.86
03030002060040
Haw
97% 98%
2181.88
140.93
03030002060050
Haw
92% 95%
2069.41
136.61
03030002060062
Haw
98% 99%
2204.38
142.37
03030002060070
UNH
40% 19%
867.70
27.32
03030002060080
UNH
59% 45%
1279.86
64.71
03030002060100
UNH
69% 63%
1496.79
90.60
03030002060110
UNH
61% 58%
1323.25
83.41
03030002060120
UNH
69% 63%
1496.79
90.60
03030002060140
UNH
85% 89%
1843.87
127.99
03030002060130
UNH
69% 63%
1496.79
90.60
03030002060160
LNH
85% 90%
1932.07
131.76
03030002060090*
UNH
92% 94%
1995.71
135.18
03030002060090*
LNH
92% 94%
2091.18
137.62
03030002060060*
UNH
94% 96%
2039.10
138.05
03030002060060*
LNH
94% 96%
2136.64
140.54
03030002060150*
UNH
88% 91%
1908.94
130.86
03030002060150*
LNH
88% 91%
2000.26
133.22
*Watershed is located in both the Upper New Hope (UNH) and Lower New Hope (LNH) Subwatersheds.
Page 2 of 2