20070747 Ver 1_Change in LLC to RS Flat Swamp_20191202

Strickland, Bev
From: Barrett Jenkins <[e-mail]>
Sent: Monday, December 2, 2019 8:55 AM
To: [e-mail]; Merritt, Katie
Cc: Haupt, Mac
Subject: RE: [External] 2019 Credit Sale Audit Results -Non Compliant
Attachments: NC SOS screenshot reflecting amended Annual Report (Change Managing
Member).pdf, Articles of Amendment (Craven County Filing).pdf
External email. Do not click links or open attachments unless you verify. Send all suspicious email as an attachment to
[e-mail]
Katie,
Hope you had a good Thanksgiving.
RS is now the managing member of Greenvest/Flat Swamp LLC and has changed the name to RS Flat Swamp LLC as
reflected in the attached screenshot from the NC Secretary of State website, the Articles of Amendment filed with the
Secretary of State and Craven County, and the link below.
https://www.sosnc.gov/online services/search/Business Registration Results
Bob is working with RS through this transition.
Thanks,
Barrett
From: [e-mail] <[e-mail]>
Sent: Wednesday, November 27, 2019 10:22 AM
To: Merritt, Katie <[e-mail]>
Cc: Haupt, Mac <[e-mail]>; Barrett Jenkins <[e-mail]>
Subject: Re: [External] 2019 Credit Sale Audit Results -Non Compliant
Thank you Katie.
Bob
Sent from my Verizon Wireless BlackBerry
From: "Merritt, Katie" <[e-mail]>
Date: Wed, 27 Nov 2019 14:59:29 +0000
To: EHI<ehi [e-mail]>
Cc: Haupt, Mac<[e-mail]>; Barrett Jenkins<[e-mail]>
Subject: Re: [External] 2019 Credit Sale Audit Results -Non Compliant
Hi Bob,

Thank you for your quick response regarding the non-compliance of the Nitrogen credit ledger, and I appreciate your
explanation of how the non-compliance occurred. Considering your prompt response to the concerns raised, I will
review the final version today and get back to you and Barrett on the results.
Thank you,
Katie
Get Outlook for iOS
From: EHI <ehi [e-mail]>
Sent: Wednesday, November 27, 2019 7:22:08 AM
To: Merritt, Katie <[e-mail]>
Cc: Haupt, Mac <[e-mail]>; Barrett Jenkins<[e-mail]>
Subject: [External] 2019 Credit Sale Audit Results -Non Compliant
External email. Do not click links or open attachments unless you verify. Send all suspicious email as an attachment to
[e-mail]
Hi Katie,
Thank you for taking the time to review the Banks Ledgers.
In response to you correspondence below. From 2010 to 2016 the banks Ledgers did not reflect sales or credit releases
from 2010 to their current date of sales (see 6/30/2016 Ledger). In 2017 NCDENR required all banks to have the same
Ledger format which was developed by NCDENR. The new format required banks to record credit releases and credits
sales from the 1st release of credits to the current sale.
When populating the information into the new Ledger format, that is when our Ledger reflected the two credit releases
in 2013 of 76,345.52 and 76,346.20, respectfully show as 2/25/2013 and 3/11/2013 entry in 2017. Attached are two
letter of release from NCDENR. In reviewing the two (2) letters, I agree their should have been only one credit release
entry. Additionally, when the new Ledgers were sent to the NCDENR for review and completeness, should that double
entry not have been recognized by NCDENR and corrected at that time, as that was the first time all of that information
was recorded on one Ledger.
Attached is the revised November 12, 2019 nutrient Ledger reflecting the February 25, 2019 entry adjustment of
76,345.52 credits for 33.59 acres adjustment as a result of the audit.
The GVFS, LLC and the bank credits have been purchased by Restoration Systems, LLC (RS) on November 13,
2019. Although IRS is not responsible for compliance of the MBI, they are the owners of the banks credits and by
extension the bank site.
Bob
Robert N. Kessler
Managing Member
Environmental Heritage Investors, LLC
523 Turnberry Lane
St. Augustine, Florida 32080
C: 904.599.6600

-------- Forwarded Message--------
Subject:2019 Credit Sale Audit Results -Non Compliant
Date:Tue, 26 Nov 2019 19:33:05 +0000
From:Merritt, Katie <[e-mail]>
To:EHI <ehi [e-mail]>
CC:Haupt, Mac <[e-mail]>
Hey Bob,
I have finalized the Fall 2019 audit for the Flat Swamp Bank for credit sales from July 1, 2018-November 11, 2019. As a
result of this audit, DWR has determined that the Nitrogen Credit Ledger is in non-compliance.
According to the memo from you (attached to this email) dated November 12, 2019, the Flat Swamp Mitigation Bank is
noted to be in the final stages of being purchased; therefore, I chose to do a quick look of all the Flat Swamp Bank's
ledgers from 11/30/2009 to 11/11/2019 just to make sure everything appeared in compliance on surface. In doing so, I
discovered a major error on your Nitrogen Nutrient ledger submitted with this fall 2019 audit. On February 25, 2013,
you back dated a Credit in the amount of 76,345.52 lbs. It appears to have been backdated after the 2017 credit sale
audit, which concluded in Then, you credited a second release on 3/11/13 in the amount of 76,346.20 lbs. The credit
release letter for 3/11/13 is attached to this email, and clarifies that this letter REPLACES the release letter on
2/25/13. Therefore, there should not have been a credit of 76,345.52 lbs on 2/25/13.
I looked back at the 2013, 2014, 2015 & 2016 audits and documented my findings of each audit below:
• 2013 Audit — 2013 compliant audit letter and approved ledger is attached. Email correspondence from you
dated July 12, 2013 with the ledger approved in the audit is attached to this email. The credit release on
2/25/13 was not shown on the approved 2013 ledger and was deemed compliant. That ledger balance was
approved at 666,432.49 lbs
• 2014 Audit - January 23, 2014 compliant audit letter and the approved Nitrogen ledger from that audit are
attached. The credit release on 2/25/13 was not shown on the approved 2014 ledger and therefore your 2014
credit sale audit was deemed compliant. The ledger balance was approved at 664,557.41 lbs.
• 2015 Audit —The Nitrogen ledger approved with the 2015 audit is attached to this email. The credit release on
2/25/13 was not shown on the approved 2015 ledger and therefore your 2015 credit sale audit was deemed
compliant. That ledger balance was approved at 737,041.51 lbs.
• 2016 Audit — The September 27, 2016 compliant email along with ledgers approved with the 2016 audit is
attached to this email. The credit release on 2/25/13 was not shown on the approved 2016 ledger, the
balances add up as if the Credit was not part of the balance, and therefore your 2016 credit sale audit was
deemed compliant. That ledger balance was approved at 729,029.45 lbs for June 22, 2016.
• 2017-2018 Audit (This audit recently concluded in March 2019). The Nitrogen ledger submitted with this audit
is attached. The credit release transaction from 2/25/13 was shown on this ledger submitted with the
audit. However, the discrepancy did not fall within the 2017 -2018 audit review time period, which is described
in the attached document and shown as being ONLY from July 1, 2017-June 30, 2018. Neither was it noted as a
discrepancy in the 2013, 2014, 2015 or 2016 audits to be an issue. Therefore, this transaction of 76,345.52 lbs-
Nitrogen is confirmed to have been added to the ledger after the 2016 audit was completed, resulting in a credit
balance of 76,345.52 pounds of Nitrogen more than it should be. Backdating sales or transactions after an audit
has been performed and completed, is unacceptable.
RESPONSE REQUIRED: Since it is confirmed that Flat Swamp, LLC backdated a Credit of 76,345.52lbs of Nitrogen Credits
on February 25, 2013, after having already concluded 4 credit sale audits where the Credit was not shown, FlatSwamp,
LLC is in non-compliance with Item G and 1 of Section V of the Mitigation Banking Instrument. Flat Swamp, LLC must
correct the Nitrogen ledger submitted with this audit to comply with the balances and transactions approved in the

previous 2013-2016 credit sale audits. It is Flat Swamp, LLC's responsibility to ensure that the final ledger submitted
with this audit is compliant with all sales and all credit releases.
All sales from the Flat Swamp Mitigation Bank must immediately cease, until DWR confirms that the Nitrogen credit
ledger is in full compliance.
Thank you,
Katie
Katie Merritt
Nutrient Offset & Buffer Banking Coordinator
401 & Buffer Permitting Unit
North Carolina Department of Environmental Quality
Office: 919-707-3637
Work Cell: 919-500-0683
Website: http://portal.ncdenr.org/web/wq/401bufferpermitting
512 N. Salisbury Street, Raleigh, NC 27620
1617 Mail Service Center, Raleigh, NC 27699-1617
Email correspondence to and from this address is subject to the
North Carolina Public Records Law and may be disclosed to third parties.

BK 3592 PG 737 - 738 (2)
This Document eRecorded:
Fee: $26.00 DocType: ADMT
Craven County, North Carolina
Sherri B. Richard, Register of Deeds
DOC# 10046543
11/18/2019 01.02.46 PM
Tax: $0.00
NORTH CAROLINA
Department of the Secretary of State
To all whom these presents shall come, Greetings:
1, Elaine F. Marshall, Secretary of State of the State of North Carolina, do hereby certify
the following and hereto attached to be a true copy of
ARTICLES OF AMENDMENT
OF
GREENVEST/FLAT SWAMP LLC
WHICH CHANGED ITS NAME TO
RS FLAT SWAMP, LLC
the original of which was filed in this office on the 18th day of November, 2019.
Scan to verify online.
Document Id= C201932200185
Verify this certificate online at http://wwvw.sosne.gov/verification
1_N WITNESS WHEREOF, f have hereunto set
my hand and affixed my official seal at the City
of Raleigh, this 18th day of November, 2019.
Secretary of State
submitted electronically by "Manning Fulton & skinner, P.A."
in compliance with North Carolina statutes governing recordable documents
and the terms of the submitter agreement with the Craven county Register of Deeds.

BK 3592 PG 738 DOC# 10046543
SOSID: 1038044
Date Filed: 11/18/2019 10:48: 00 AM
State of North Carolina Elaine F. Marshall
Department of the Secretary of State North Carolina Secretary of State
C2019 322 00185
Limited Liability Company
AMENDMENT OF ARTICLES OF ORGANIZATION
GREENVEST/FLAT SWAMP LLC
Pursuant to §57D-2-22 of the General Statutes of North Carolina, the undersigned limited liability
company hereby submits the following Articles of Amendment for the purpose of amending its Articles
of Organization.
1. The name of the limited liability company is:
GREENVEST/FLAT SWAMP LLC
2. The text of each amendment adopted is as follows:
(a) Paragraph 1 is hereby amended as follows:
"The name of the limited liability company is: RS FLAT SWAMP, LLC"
(b) Paragraph 4 is hereby amended as follows:
"The street address and county of the initial registered office of the limited
liability company is: 1101 Haynes Street, Suite 211, Raleigh, Wake County, NC
27604."
(c) Paragraph 6 is hereby amended as follows:
"The name of the initial registered agent is: Glenn Floyd"
(d) Paragraph 7 is hereby amended as follows:
"The street address and county of the principal office of the limited liability
company is: 1 101 Haynes Street, Suite 211, Raleigh, Wake County, NC 27604."
3. The amendment was duly adopted by the unanimous vote of the members of the limited liability
company.
4. These articles will be effective upon filing.
This the 13th day of November, 2019.
GREENVEST/FLAT SWAMP, LLC
(which is changing its name to RS Flat Swamp, LLC)
RESTORATION SYSTEMS, LLC, Manager
By:
o n Preyer, Presid

11 /21 /2019
North Carolina Secretary of State Search Results
• File an Annual Report/Amend an Annual Report • Upload a PDF Filing • Order a Document Online -
Add Entity to My Email Notification List • View Filings • Print a Pre -Populated Annual Report form • Print
an Amended a Annual Report form
Limited Liability Company
Legal Name
RS Flat Swamp, LLC
Prev Legal Name
Greenvest/Flat Swamp LLC
Information
Sosldt 1038044
Status, Current -Active
Annual Report Status, Current
Citizenships Domestic
Date Formed, 4/11 /2008
Registered Agents Floyd, Glenn
Addresses
Mailing
1101 Haynes St Ste 211
Raleigh, NC 27604
Reg Mailing
1101 Haynes St Ste 211
Raleigh, NC 27604
Company Officials
Principal Office
1101 Haynes St Ste 211
Raleigh, NC 27604
Reg Office
1101 Haynes St Ste 211
Raleigh, NC 27604
All LLCs are managed by their managers pursuant to N.C.G.S. 57D-3-20.
Manager
Restoration Systems, LLC
1101 Haynes St Ste 211
Raleigh NC 27604
https://www.sosnc.gov/onIine_services/search/Business_Registration_ResuIts 1 /2

11/21/2019
North Carolina Secretary of State Search Results
https://www.sosnc.gov/onIine_services/search/Business_Registration_ResuIts 2/2