20160847 Ver 3_Credit Release Task 3_20201112

ROY COOPER
Governor
MICHAEL S. REGAN
Secretary
S. DANIEL SMITH
Director
NORTH CAROLINA
Environmental Quality
November 12, 2020
Brad Breslow DWR Project #: 2016-08470
Environmental Banc & Exchange, LLC Alamance County
302 Jefferson Street, Suite 110
Raleigh, NC 27605
(via electronic mail: bbreslowkres.us )
Re: Cloud & Banner Mitigation Banking Instrument (UMBI)
Cloud & Banner Nutrient Offset & Buffer Mitigation Bank
Credit Release— Task 3
Dear Mr. Breslow:
On July 27, 2020, the Division of Water Resources (DWR) received an As -Built Report from
Resource Environmental Solutions, LLC on behalf of Environmental Banc & Exchange, LLC
(EBX) for the Cloud & Banner site. According to the As -Built survey submitted with the As -
Built Report, there are slight adjustments in the total amounts of buffer mitigation as compared
to the approved Bank Parcel Development Package. The subject site has generated 159,419.52
ft2 of buffer restoration credits, 6,060.90 ft2 of buffer preservation credits,137.66 lbs-delivered
Nitrogen nutrient offset credits and 4.40 lbs-delivered Phosphorus nutrient offset credits. The
credits being released have been modified to reflect any changes to the creditable acreage as
proposed in the BPDP.
DWR received a performance bond (#K4017199A) in the amount of $100,000 issued to EBX from
Federal Insurance Company to cover monitoring and maintenance at the subject site. The term of
this bond applies beginning September 4, 2020 and ends September 4, 2021. Future credit releases
will be dependent on both the renewal of this performance bond and the annual monitoring reports.
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
3) Monitoring Financial Assurance Posted & Approval of As -Built Report 10%
By copy of this correspondence, DWR confirms that you have satisfied the above requirements for
the above -referenced tract. Therefore, 10% of your Jordan Lake riparian buffer Restoration credits
(0.10 x 159,419.52 ft2 = 15,941.95 ft2) minus 1,141.35 ft2 yields 14,800.60 ft2 that are now
released. Additionally, 10% of your Jordan Lake riparian buffer Preservation credits
(0.10 x 6,060.90 ft2 = 606.09 ft2) minus 114.49 ft2 yields 491.60 ft2 that are now released.
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512 North Salisbury Street 1 1617 Mail Service Center I Raleigh, North Carolina 27699-1617
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Cloud & Banner Site
EBX
November 12, 2020
Additionally, 10% of your generated nitrogen offset credits (0.10 x 382.39 = 38.24 lb-N) and 10%
of your generated phosphorus credits (0.10 x 24.45 = 2.45 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, 10% of your
delivered nitrogen offset credits (0.10 x 137.66 lb-N =13.77 lb-N) and 10% of your delivered
phosphorus credits (0.10 x 4.40 = 0.44 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 feel free to call me at [phone] if you have any questions regarding this
correspondence.
Sincerely,
DocuSigned by:
WNW
A43C727006D543E...
Katie Merritt
401 & Buffer Permitting Branch
cc:File Copy (Katie Merritt)
Caitlan Parker — EBX/RES (via electronic mail)
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