20160847 Ver 3_Credit Release Task 1,7_12-2019_20191211

ROY COOPER
Governor
MICHAEL S. REGAN
Secretary
LINDA CULPEPPER
Director
NORTH CAROLINA
Environmental Quality
December 11, 2019
Brad Breslow DWR Project #: 2016-08470
Environmental Banc & Exchange, LLC Alamance County
302 Jefferson Street, Suite 110
Raleigh, NC 27605
(via electronic mail: bbreslowgres.us )
Re: Cloud & Banner Mitigation Banking Instrument (UMBI)
Cloud & Banner Nutrient Offset & Buffer Mitigation Bank
Credit Release— Tasks 1 & 7
Dear Mr. Breslow:
On May 31, 2019, the Division of Water Resources (DWR) approved the Bank Parcel Development
Package (BPDP) for the Cloud & Banner Nutrient Offset and Buffer Mitigation Bank. On December
5, 2019, the DWR received a signed and recorded conservation easement and corresponding plat for
the subject site. Additionally, Environmental Banc & Exchange, LLC (EBX) provided confirmation
that the conservation easement for the subject bank has been successfully assigned to Unique Places
to Save. Unique Places to Save is a 501(c)(3) non-profit corporation and has been approved by
DWR as a long-term steward for this mitigation bank.
Lastly, DWR received a performance bond (#82522095) from EBX in the amount of $150,000 to
cover performance obligations for the construction of the subject site. This bond is with Federal
Insurance Company and ends June 21, 2020.
In accordance with the MBI, signed on May 20, 2019, the following Project Milestones have been
met and the corresponding credits shall be released:
Task/Milestones
Credit
1) MBI and BPDP Approved by DWR, Conservation Easement recorded, 20%
and Financial Assurance Posted
7) Item B (1) of Section X in the MBI (assign the easement 5%
to stewardship) has been completed and approved
TOTAL: 25%
By copy of this correspondence, DWR confirms that you have satisfied the above requirements for
the above -referenced tract. Therefore, 25% of your Jordan Lake riparian buffer Restoration credits
(0.25 x 161,955.83 ft2 = 40,488.96 ft2) and 25% of your Jordan Lake riparian buffer Preservation
credits (0.25 x 6,315.33 ft2 = 1,578.83 ft2) are now released.
North Carolina Department of Environmental Quality I Division of Water Resources
512 North Salisbury Street 1 1617 Mail Service Center I Raleigh, North Carolina 27699-1617

Cloud & Banner Site
EBX
December 11, 2019
Additionally, 25% of your generated nitrogen offset credits (0.25 x 382.39 = 95.601b-N) and 25%
of your generated phosphorus credits (0.25 x 24.45 = 6.11 lb-P) are now released. Generated credits
are credits that have not been applied to the appropriate delivery factor.
The delivery factors applied to this bank due to its location in the 14-digit HUC 03030002030070 are
36% for nitrogen and 18% for phosphorous. Therefore, the total amounts of delivered nutrient offset
credits for this site are 137.66 lb-N and 4.40 lb-P. By copy of this correspondence, 25% of your
delivered nitrogen offset credits (0.25 x 137.66 lb-N = 34.41 lb-N) and 25% of your delivered
phosphorus credits (0.25 x 4.40 = 1.10 lb-P) are now available for sale.
Please note that only the delivered nutrient offset credits can be sold from this bank and used
for impacts in the Haw River Arm of Jordan Lake within the Cape Fear River Basin.
Additionally, riparian buffer credits can only be used to offset impacts located in the Haw
River Sub Watershed of Jordan Lake according to 15A NCAC 02B .0295, which became
effective on November 1, 2015.
Please use the Jordan Lake Credit Ledger Templates provided on our website at:
http://portal.ncdenr.org/web/wq/nutrientbuffertemplates to track and report credit availability for the
Cloud & Banner Mitigation Bank. Upon receiving this correspondence, please submit our credit
ledgers to DWR reflecting the available credits released for each mitigation type as follows: Buffer
Restoration, Buffer Preservation, Nitrogen Nutrient Offset, Phosphorus Nutrient Offset.
Please feel free to call Katie Merritt at [phone] if you have any questions regarding this
correspondence.
Sincerely,
Katie Merritt
401 & Buffer Permitting Branch
cc:File Copy (Katie Merritt)
Caitlan Parker — EBX/RES (via electronic mail)
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