20160847 Ver 3_Credit Release Task 4_20210211

ROY COOPER
Governor
MICHAEL S. REGAN
Secretary
S. DANI£L SMITH
Director
Brad Breslow
Environmental Banc & Exchange, LLC
3600 Glenwood Avenue, Suite 100
Raleigh, North Carolina 27612
(via electronic mail: bbreslowkres.us )
NORTH CAROLINA
Environmental Quality
February 11, 2021
DWR Project #: 2016-0847v3
Re: Cloud & Banner Mitigation Banking Instrument (UMBI)
Cloud & Banner Nutrient Offset & Buffer Mitigation Bank
Credit Release— Task 4
Dear Mr. Breslow:
Alamance County
On November 17, 2020, the Division of Water Resources (DWR) received a Year 1 Monitoring
Report from Resource Environmental Solutions, LLC on behalf of Environmental Banc &
Exchange, LLC (EBX) for the Cloud & Banner site. Overall, site conditions appear to look good
with the vegetation exceeding performance criterion and no encroachment within the conservation
easement areas was observed.
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 NMI, signed on May 20, 2019, the following Project Milestones have been
met and the corresponding credits shall be released:
Task/Milestones Credit
4) Monitoring Report #1: Approved by the DWR & financial assurance renewed 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) and 10% of your Jordan Lake riparian buffer Preservation
credits (0.10 x 6,060.90 ft2 = 606.09 ft2) are now released.
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.
N11H fH (:A�i(1!.INA �
D E Q 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
0­O'torenwm­talQ"I 919,707.9000

Cloud & Banner Site
EBX
February 11, 2021
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,
E
DoocuuSiignedby- �A- _
OOBD54'3E
Katie Merritt
401 & Buffer Permitting Branch
cc:File Copy (Katie Merritt)
Caitlan Parker — EBX/RES (via electronic mail)
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