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Home My WebLink AboutBlackstar Prospectus 042417RES Cape Fear 04 Umbrella Mitigation Bank Blackstar Site Prospectus Cape Fear River Basin HLTC 03030004 �,- � ^ �� ' �, ,�,�-�� - �rr. a� �� . `. ' ,�w �> . � ..��`RY' : '`� � - _„�_. , . .- " . . . ..:y: r . . . . � . . iy _ : � }' s _ Y �i .� ,. � � ' ,^� �'.°��. -y� • ...i��.',��' � � ' . '�'-�F r- ` � �.� - . _ . . . ' �. . . yl „vw�: Prepared by: Resource Environmental Solutions, LLC Sank Sponsor: Environmental Banc & Exchange, LLC 302 Jefferson Street, Suite 110 Raleigh, NC 27605 919-209-1052 Apri12017 Table of Contents 1 INTRODUCTION .....................................................................................................................1 1.1 Project Description ........................................................................................................................1 1.2 Project Location ............................................................................................................................1 1.3 Service Area ..................................................................................................................................1 1.4 Identified Watershed Needs ..........................................................................................................1 1.5 Purpose and Objectives ................................................................................................................. 2 1.6 Technical Feasibility ..................................................................................................................... 2 1.7 Site Ownership .............................................................................................................................. 2 2 QUALIFICATIONS ..................................................................................................................3 2.1 Bank Sponsor ................................................................................................................................3 2.2 Bank Sponsor Qualifications ........................................................................................................ 3 3 EXISTING CONDITIONS ........................................................................................................4 3.1 Existing Jurisdictional Waters of the U.S . ....................................................................................4 3.2 Soil Survey ....................................................................................................................................5 3.2.1 General Physiographic and Geologic Characteristics ......................................................... 5 3.2.2 Site Mapped Soil Series ......................................................................................................... 5 3.3 Endangered/Threatened Species ................................................................................................... 5 3.4 Vegetation and Wildlife ................................................................................................................6 3.5 Cultural Resources ........................................................................................................................ 7 3.6 Constraints .................................................................................................................................... 7 3.7 Site Photographs ........................................................................................................................... 8 4 PROPOSED BANK CONDITIONS ..........................................................................................9 4.1 Conceptual Mitigation Plan .......................................................................................................... 9 4.1.1 Wetland Re-establishment ..................................................................................................... 9 4.1.2 Wetland Enhancement .........................................................................................................10 4.1.3 Monitoring ..........................................................................................................................10 5 BANK ESTABLISHMENT AND OPERATION .....................................................................11 5.1 Establishment and Operation of the Bank ...................................................................................11 5.2 Proposed Credit Release Schedule ..............................................................................................11 5.2.1 Initial Allocation ofReleased Credits .................................................................................12 5.2.2 Subsequent Credit Releases ................................................................................................12 5.3 Financial Assurances ..................................................................................................................13 5.4 Proposed Ownership and Long-Term Management ...................................................................13 5.5 Assurance of Water Rights .........................................................................................................13 Blackstar Mitigation Site PROPSECTUS RES Cape Fear 04 Umbrella Bank i Apri12017 List of Figures Figure l. Project Vicinity Map Figure 2. USGS Topographic Map Figure 3. Aerial Photography Map Figure 4. NWI Wetlands Map Figure 5. Soils Map Figure 6. Constraints Map Figure 7. Conceptual Design Plan Appendix A— Landowner Authorization Forms Appendix B— NC WAM Forms Blackstar Mitigation Site PROPSECTUS RES Cape Fear 04 Umbrella Bank ii Apri12017 1 INTRODUCTION 1.1 Project Description Environmental Banc & Exchange, LLC (`BBX"), a wholly owned subsidiary of Resource Environmental Solutions ("RES"), is pleased to propose the RES Cape Fear 04 Umbrella Mitigation Bank (the `Bank"). The proposed umbrella structure of the Bank is designed to initially permit one mitigation site, and establish the umbrella banking instrument for future mitigation sites. The first site is the Blackstar Wetland Mitigation Site (the "Site"), and is identiiied as having potential to help meet the compensatory mitigation requirement for riparian wetland impacts in hydrologic unit code (HiJC) 03030004 of the Cape Fear River Basin. The Site is located in Erwin, NC and contains one parcel totaling 208-acres in Harnett County, NC. One ditch flows southwesterly through the Site and another ditch is located to the east of that. The Site e�ibits diminished habitat value as a result of past and on-going agricultural activities. The Site will involve the re-establishment and enhancement of 1992 acres that have been disturbed by impacts from livestock, including erosion and down cutting along a swale. The conceptual design presents 12.47 acres of wetland re-establishment and 7.45 acres of wetland enhancement, generating 16.23 Wetland Mitigation Units (WMUs). 1.2 Project Location The Site is located approximately 5.4 miles west of Dunn in Harnett County (Figures 1 and 2). The GPS coordinates of the site are 35.2786°N and -78.7002°W. To access the site from the town of Erwin, head south on NC-217 S for approximately 1.1 miles, and then turn left into Beaver Dam Road and continue for approximately 2.5 miles. This property provides access to the Site. 1.3 Service Area The Umbrella Bank will provide mitigation credits to offset unavoidable impacts to wetland and stream resources within the Cape Fear 04 River Basin (8-digit USGS HUC 03030004). The Site is located within the 14-digit HUC 03030004110020. This proposed Site will result in significant ecological improvements including water quality improvement, habitat restoration, and a decrease in non-point source pollution from agricultural practices. The Site's watershed is primarily rural and the project parcel has been in agricultural use for several decades (Figure 3). Water quality stressors currently affecting the Site include active cattle pasture. The Site will restore and protect a catchment within the Juniper Creek Watershed, which discharges directly to the Cape Fear River. Project benefits are not limited to the immediate area, but have more far-reaching effects for the Cape Fear River. 1.4 Identified Watershed Needs The North Carolina Division of Mitigation Services (DMS) develops River Basin Restoration Priorities (RBRP) to guide its restoration activities within each of the state's 54 cataloging units. The Cape Fear is one of four river basins entirely contained within North Carolina's borders. The 2009 Cape Fear River Basin RBRP identified several restoration needs for the entire Cape Fear River Basin, as well as for HUC 03030004. Goals include promoting nutrient and sediment reduction in agricultural and urban areas by Blackstar Mitigation Site PROPSECTUS RES Cape Fear 04 Umbrella Bank 1 Apri12017 restoring and preserving streams, wetlands, and riparian buffers. The Cape Fear 03030004 HUC has some fast-growing urban areas, namely Fayetteville, Fuquay-Varina, Holly Springs, and Fort Bragg. The proposed Bank is designed to help meet these goals. The projects will address stressors identified in the watershed through nutrient removal, sediment removal, runoff filtration, and improved aquatic and terrestrial habitat. These project goals will be achieved through wetland enhancement and re-establishment. 1.5 Purpose and Objectives The purpose of the proposed Bank is to generate compensatory mitigation credits for inclusion in the RES Cape Fear 04 Umbrella Mitigation Bank in the Cape Fear River Basin. The project goals address stressors identified in the watershed, and include the following: • Nutrient removal, • Sediment reduction, • Invasive species treatment, • Filtration of runoff, and • Improved aquatic and terrestrial habitat. The project goals will be addressed through the following project objectives: • Converting active pasture to a wetland slough and bottomland wetland system, • Fill and stabilize existing ditches, • Re-establishment of bottomland hardwood and riverine swamp forest habitats, Treatment of exotic invasive species, and Enhancement of hydrology in existing wetlands. The proposed Site will provide numerous ecological and water quality benefits within the Cape Fear River Basin. These benefits are not limited to the project area, but have more far-reaching effects throughout the Cape Fear River. The Site will provide improvements to water quality, hydrologic function, and habitat. 1.6 Technical Feasibility The technical feasibility of the Site is supported by EBX's/RES' extensive experience with stream and wetland restoration and enhancement in North Carolina and throughout the Southeast. Further preliminary survey, investigations, and design has been performed to ensure the feasibility of the proposed project. The absence of fatal flaws such as hydrologic trespass, historic/cultural resources, and protected species means the project is unlikely to be impeded by resource issues, ar by objections from adjacent landowners. 1.7 Site Ownership The land required for the construction, management, and stewardship of this mitigation project includes portions of the parcel listed in Table 1. RES has obtained an easement agreement option on part of the parcel. Blackstar Mitigation Site PROPSECTUS RES Cape Fear 04 Umbrella Bank 2 Apri12017 Table 1. Site Ownership Deed Book parcel Protected Landowner Pin County and Page Number Acreage Acreage Wellons Properties 0585-94-8560 Harnett 707/534 208.49 19.92 Inc. 2 QUALIFICATIONS 2.1 Bank Sponsor The Site shall be established under the terms and conditions of the RES Cape Fear 04 Umbrella Mitigation Bank made and entered into by Environmental Banc & Exchange, LLC (EBX), acting as the Bank Sponsor. Company Name: Company Address: Contact Name: Telephone: Email: Environmental Banc & Exchange, LLC 302 Jefferson Street, Suite 110, Raleigh, NC 27605 Cara Conder (919) 209-1052 cconder@res.us 2.2 Bank Sponsor Qualitications Resource Environmental Solutions, LLC (RES) was founded in February 2007 and grew organically from its roots restoring Louisiana wetlands to deliver mitigation solutions across Louisiana, Texas, Pennsylvania, West Virginia, Maryland, Virginia, North Carolina and South Carolina. In December 2014, RE5 acquired industry pioneer Environmental Banc & Exchange, LLC (EBX) and EBX-Neuse I, LLC (a partnership), expanding the RES knowledge base and geographic and technical delivery capabilities. RES develops and supplies ecological offsets to help public and private sector clients obtain required permits for unavoidable, project-related impacts to wetlands, streams, and habitats. RES helps clients proactively manage risk from operations in environmentally sensitive areas by providing proactive impact analyses, streamlining permitting processes, and limiting liability and regulatory exposure. • RES is the premier provider of ecological offset solutions in the US � RES founded in 2007 / EBX founded in 1997 • 110 mitigation sites pernutted/in process � Conservation easements protecting roughly 400 sites � 32,000 restored wetland acres • 4,000 acres of custom mitigation solutions • 155 miles of stream restoration • Reduced over 240 tons of nutrients • Rehabilitated and preserved over 3,700 acres of endangered species habitats In North Carolina, RES and its affiliated companies have won over $70 million in mitigation contracts with North Carolina state agencies. With a regional ofiice in Raleigh staffed with full-time professionals, RES Blackstar Mitigation Site PROPSECTUS RES Cape Fear 04 Umbrella Bank 3 Apri12017 has the ability to carry out existing projects, as well as secure and carry out new projects and banks in the State. A few representative projects implemented by RES are presented below. Neu-Con Umbrella Mitigation Bank (North Carolina): One of the first approved wetland and stream banks in North Carolina. The service area of the Bank is the entire Neuse River Basin. The Bank was established in Apri12001. Initial contract: 22,9641inear feet of stream mitigation units (SMU) sold to North Carolina DOT based on credits produced from 3 stream restoration sites (initiated November 2000; sold all credits in November 2000; design initiated December 2001; construction completed on all sites Spring 2005; monitoring completed on all sites in Fa112009). Additional sites added starting in 2008. Chesapeake Wetland Mitigation Bank (Ciry of Chesapeake, Virginia): 545-acre wetland mitigation bank in the Lower James Watershed in Virginia. The service territory of the Bank includes HLTCs 02080206 and 02080208. The Bank was established in July 2009. The remainder of the 1,156-acre property will be sold to the Great Dismal Wildlife Refuge (MBI finalized Spring 2009; construction completed Spring 2011; in the monitoring phase). Conoconnara Swamp Site (Halifi� County, North Carolina): 87.0 WMU of wetland restoration and 5,050 SMU of stream restoration (initiated July 2005; construction completed Spring 2007; monitoring completed Fa112011). 3 EXISTING CONDITIONS 3.1 Ea�isting Jurisdictional Waters of the U.S. The US Fish and Wildlife Service National Wetland Inventory (NWI) Map depicts wetlands within the proj ect site (Figure 4). The ditch that drains directly to the Cape Fear River is mapped as PFO 1 C(Palustrine Forested Broad-Leaved Deciduous Seasonally Flooded) and PSS 1 C(Palustrine Scrub-Shrub Broad-Leaved Deciduous Seasonally Flooded. Detailed wetland delineation has not been performed. The Site will be delineated and approved by the USACE during the decision phase of the project. The wetland areas were assessed using the NC Wetland Assessment Method (NC WAM). NC WAM rating forms are included in Appendix B, and results are summarized in Table 2. Table 2. NC WAM Summary Assessment Area NC WAM Rating Area 1 Low Area 2 Low Area 3 Low Blackstar Mitigation Site PROPSECTUS RES Cape Fear 04 Umbrella Bank 4 Apri12017 3.2 Soil Survey 3.21 General Physiographic and Geologic Characteristics The Site is located in the Southeastern Floodplains and Low Terraces level IV ecoregion within the Southeastern Plains level III ecoregion. Dominated by sluggish rivers, backwaters with ponds, swamps, and oxbow lakes, this ecoregion is composed primarily of alluvium and terrace deposits of sand, clay, and gravel. Due to regular flooding, this region is comprised of both blackwater and brownwater floodplains that often e�ibit bottomland hardwood and swamp forests. This region contains valuable habitat and provides important wildlife corridors. 3.2.2 Site Mapped Soil Series Existing soil information from the Natural Resource Conservation Service (NRCS) shows the property is located within the Roanoke-Wickham-Altavista association (Table 3). The series in the lower concave landscape areas are mapped as a Roanoke loam and Wahee fine sandy loam (Figure 5). Most of the project soils are Roanoke loam (hydric soil) and are nearly level poorly drained soils. Wahee occurs as a fine sandy loam that is occasionally flooded. The Wahee and Wickham soils contain hydric inclusions. Mapped in the higher nearly level to convex landscapes are well drained State and Wickham iine sandy loams and moderately well drained Altavista fine sandy loam. Wickham is a fine sandy loam with 0 to 6 percent slopes, State is a fine sandy loam with 0 to 3 percent slopes, and Altavista is a fine sandy loam 0 to 3 percent slopes. Table 3. NRCS Mapped Soil Series at Site Seasonal High Drainage Farmland Taxonomic Series Class �'ater Table classification Class Hydric Roanoke loam poorly 0 to 12 Statewide importance Typic yes Endoaquults Wahee somewhat Aeric fine sandy loam poorly 6 to 18 Statewide importance Endoaquults Yes 7% Altavista iine sandy moderately 18 to 30 Prime farmland Aquic No loam well Hapludults fine sandy loam �'�'ell 48 to 72 Prime farmland H pludults No Wickham fine �,�,ell >80 Prime farmland Typic Yes sandy loam Hapludults 10% 3.3 Endangered/Threatened Species Plants and animals with a federal classiiication of endangered or threatened are protected under provisions of Sections 7 and 9 of the Endangered Species Act of 1973, as amended. The US Fish and Wildlife Service (USFWS) database (accessed 20 April 2017) lists three endangered species for Harnett County, North Carolina: Red-cockaded woodpecker (Picoides borealis), Cape Fear shiner (Notropis mekistocholas), and Blackstar Mitigation Site PROPSECTUS RES Cape Fear 04 Umbrella Bank 5 Apri12017 rough-leaved loosestrife (Lysimachia asperulaefolia) (Table 4). The Bald eagle (Haliaeetus leucocephalus) is protected under the Bald and Golden Eagle Protection Act (BGPA) and prohibits take of bald and golden eagles. No protected species or potential habitat for protected species was observed during preliminary site evaluations. In addition to the USFWS database, the most recent (January, 2017) NC Natural Heritage Program (NHP) GIS database was consulted to determine whether previously cataloged occurrences of protected species are mapped within one mile of the Site. Results from NHP indicated that there are no known occurrences within a one-mile radius of the project area. Based on initial site investigations, no impacts to federally protected species are anticipated as a result of the proposed Project. The environmental screening phase of the Project will include USFWS coordination to confirm these findings. Table 4. Federally Protected Species in Harnett County Common Name Scientific name Federal Habitat Record Status Present Status Vertebrate: Bald ea le Haliaeetus leucoce halus BGPA No Current Red-cockaded woodpecker Picoides borealis E No Current Cape Fear shiner Notropis mekistocholas E No Current Vascular Plant• Rough-leaved loosestrife Lysimachia asperulaefolia E No Current E= Endangered; BGPA = Bald and Golden Eagle Protection Act 3.4 Vegetation and Wildlife Current land use around the Site is primarily agricultural, undeveloped land, and single-family homes. Land-use immediately surrounding the project includes pasture supporting livestock. The landscape is old terrace above the Cape Fear River exhibiting linear depressions between higher shallow ridges. A small ditch flows southwesterly through the Site to the Cape Fear River (Site is located about 0.60 miles west of the Cape Fear River). The Site has several additional shallow ditches to improve surface drainage to a ditch along the eastern property boundary and impacts from livestock have increased erosion and down cutting along a swale that also increases site drainage. Soil investigations shows that much of the low-lying landscape exhibits hydric characteristics and a shallow seasonal high water table. There are two community types present within the project area: pasture and forest. The re-establishment areas are primarily pasture and the enhancement area is both Palustine forested (PFO 1 C) and Palustrine scrub-shrub (PSS 1 C) wetland. The proposed re-establishment area on the eastern ditch of the Site is a concave landscape with shallow ditching to drain surface water and has sustained surface churning from livestock. This limits infiltration and both surface and subsurface long-term storage capacity. Within this proposed re-establishment area the pasture is Bermuda (Cynodon) with buttercup (Ranunculus), and the ditched area has common rush (Juncus effusus) with no trees present. Other grasses and weeds are limited. The hydrology at the southern end of the western ditch e�ibits disturbance, but seepage is present. Within this proposed re-establishment area, the pasture is Bermuda with buttercup. The low-lying areas and ditches have common rush. The proposed enhancement area is a disturbed forested wetland that appears to currently meet jurisdictional hydrology, but has minor drainage modifications and impacts of livestock. Vegetation is stressed by these impacts. The sparse canopy consists of red maple (Acer rubrum), blackgum (Nyssa sylvatica), sweetgum Blackstar Mitigation Site PROPSECTUS RES Cape Fear 04 Umbrella Bank 6 Apri12017 (Liquidambar styraciflua), cottonwood (Populus deltoides), American elm (Ulmus americana), and swamp chestnut oak (Quercus michauxii). Herbaceous vegetation includes common rush, sedges (Carex sp.), and lizard's tail (Saururus cernuus). Some exotics were noted, including multiflora rose (Rosa multiflora) and Japanese honeysuckle (Lonicera sempervirens). 3.5 Cultural Resources A review of the North Carolina State Historic Preservation Office (SHPO) GIS Web Service (accessed Apri120, 2017) database did not reveal any listed or potentially eligible historic or archeological resources on the proposed project property. No impacts are anticipated from project activities as there are no surveyed sites listed in the area. The environmental screening phase of the project will include SHPO coordination to confirtn these fndings. 3.6 Constraints There are no majar constraints to construction of the Site. The Site is readily accessible from Beaver Dam Road. There are no existing mineral rights issues, easements, or utility corridors within the proposed Bank boundaries. One easement break is included towards the southern end of the Site to provide landowner and cattle access. The entire project area lies within a FEMA 100-year floodplain (Figure 6). No grading or earthwork will take place within FEMA- regulated floodways. Blackstar Mitigation Site PROPSECTUS RES Cape Fear 04 Umbrella Bank 7 Apri12017 3.7 Site Photographs ., ,:�,� ' ;� �` � � " ��,, � a_ H � - � '�' �� A,. - �- - � --�:-E _ �. �__,__ - .. .. � '_� 4 .. � �1ip � . .L 9�� " �� s•q � _ - . . 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Southern ei�d of ditch #1. 04/ 18/2017 04/ 18/2017 �' �:�5� "i 1 � r, _�� 1 - i r � _'. � � i � r .# �G 1 �P ��,; ' ��^ r � 4' +, � '"' s w �.� '' � �� "�;'. ,.�u, • : �; ��; �'' ,.., ". . - ` �_�_ .2�.�.� '�� ;' '.�.,,c. �a : _ �� ,.. � �` �. � : � £ - . 4r � . s,:, ac. � -�j�. ,� '. .� . .' j +�S F �. _ ➢ � � �.. a � r ,�. h, • � _.' ui�' � r i�i �`�' � �� s .. X T �� . � .�f A` ��.,. � �i ��+�'� Y ��x � ��.� .� l� � , 16.. A*, �Ff �� : • �e � ��`' � . ' . � T � W . {� ��,� � .F��F �� . -' � `i� �,� ��nV 1�' 1 v � :':��:� yr.� "' s: �`-�t' ',�'iy' i � � ; �, � , + '` 4��:��"' ��'"� ^� �y -' �� , ','�. r�"�� '��',�l 1 � � t '�.;, �, � w�7� �� . w {' �r - "+�7 � � ��'4 �, � � :.e �n��4r�,�`F� „��t V ,•� ��r:� � ,`4�1:�'S s,� "�'�,.� �..y . K .� 4,r �ii� .� �: }-,, .��Y l� .�'� °!'�}�_�.�1.�_r� -- -- �-- - -��—�_ f _ .:. — � � � � - - � Existing conditions iniddle of ditch #1 Existing conditions northern area of ditch #l. 04/ 18/2017 04/ 18/2017 _�, � 6 . F. :.,� R _ ��.: . } w R : F�'��. � �, �'�� . � �*b ' -� ��, , �. �. i: ��s � =� ,' ., �yp `j', �� I� , l.l • 1. .SI ' I' � � ' � I t _ l�. '..r� f ��17�4 ; I�`s ..iYYO� ' 1� �� I.t. ti I i�� .- - �. — •-��RT � b:.u�- � -=� � _ � ��'�,f'_' t� �. u;+ " . ....��' _ �,, 1 �: ; �� ' � _ ;;��, -� � . �-.�`�" j�.$il �f"?� �` �:�+- ,; - ��i d�.c � '��' � - 5.r� ' ' '.s ��o � ; y `-,i - 4'�� ... -` \ .�1 � ','f�i� �:``�I`u'� '�`i .. � » 4 ,-�4 �� . �� a� .� � � . .. .. !� 'f�' �� - ��t� f � d. _ � 3� ':'1 _ . ._— , _ . c� _.�': �k� Northern part of ditch #1. Existing conditions on ditch #2. 04/ 18/2017 04/ 18/2017 Blackstar Mitigation Site PROPSECTUS RES Cape Fear 04 Umbrella Bank 8 Apri12017 4 PROPOSED BANK CONDITIONS 4.1 Conceptual Mitigation Plan The Site presents the opportunity to provide 16.23 wetland mitigation units. These will be derived from Wetland Re-establishment and Wetland Enhancement. Table 5 details the mitigation types and WMUs generated. The proposed conceptual design plan is shown in Figure 7. Table 5. Proposed Mitigation Summary Mitigation Type Total Acres Ratio WMUs Re-establishment 12.47 1:1 12.4 Enhancement 7.45 2:1 3.73 19.92 - 16.23 4.1.1 Wetland Re-establishment The existing pasture areas on the Site will be treated with Wetland Re-establishment. Re- establishment activities will include the following: • The existing shallow ditches will be backfilled and stabilized; • Areas of cut and fill will be re-graded to create a continuous wetland/slough and bottomland wetland system; and • Areas will be replanted with appropriate tree species and a permanent seedmix. The Wetland Re-establishment areas will be restored to a mixture of Riverine Swamp Forest and Bottomland Hardwood Forest, as described in the NC Wetland Assessment Method (NCWAM) dichotomous key to general NC wetland types. The site is expected to support a mosaic of habitat types including wetter, lower-lying areas more typically associated with Riverine Swamp forest and areas expected to be only intermittently inundated, more typical of Bottomland Hardwood Forests. Riverine Swamp Forest, is characterized by seasonal to semi-permanent inundation. These communities occur in the wettest portions of large river floodplains. Overbank flooding is usually an important source of water, as well as groundwater and overland runoff. Vegetation is usually dominated by bald cypress (Taxodium distichum), black gum, and water tupelo (N. aquatica) in the Coastal Plain ecoregions. Herbaceous cover is typically more open than in Bottomland Hardwood Forests. Bottomland Hardwood Forest, is typically intermittently to seasonally saturated. Overbank flooding can be an important source of water, as can groundwater and surface runof£ This wetland type is characterized by ground surface relief that provides good water storage. This wetland type is dominated by hardwood tree species, including various oaks (Quercus spp.), red maple, ashes (Fraxinus spp.), sycamore (Platanus occidentalis), sweetgum, box elder (Acer negundo), hackberry (Celtis laevigata), and American elm. Blackstar Mitigation Site PROPSECTUS RES Cape Fear 04 Umbrella Bank 9 Apri12017 4.1.2 Wetland Enhancement The Wetland Enhancement areas will be treated by removing cattle, planting native vegetation, and enhancing the surface hydrology. 4.1.3 Monitoring Vegetation and hydrology will be monitored across both the re-establishment and enhancement areas of the Site to determine the success of the wetland mitigation. Vegetation survival rates will be monitored using a mixture of fixed and random vegetation plots over approximately two percent of the planted area. Automatic groundwater gauges will be installed across the Site to measure changes to hydrology. Vegetation and hydrology monitoring will be conducted in accordance with the October 2016 USACE Guidance. 4.1.3.1 Reference Ecosystems An appropriate local reference community will be identified and surveyed during the mitigation plan phase. 4.1.3.2 Visual Monitoring Visual monitoring of all mitigation areas will be conducted a minimum of twice per monitoring year by qualified individuals. The visual assessments will include vegetation density, vigor, invasive species, and easement encroachments. Digital images will be taken at fixed representative locations to record each monitoring event, as well as any noted problem areas or areas of concern. Results of visual monitoring will be presented in a plan view exhibit with a brief description of problem areas and digital images. 41.3.3 Vegetative Success Criteria Vegetation monitoring plots will be a minimum of 0.02 acres in size, and cover approximately two percent of the planted area. The following data will be recorded for all trees in the plots: species, height, planting date (or volunteer), and grid location. Monitoring will occur each year during the monitoring period. The interim measures of vegetative success for the site will be the survival of at least 320 planted three-year old trees per acre at the end of Year 3 and 260 five-year old trees per acre at the end of Year 5. The final vegetative success criteria will be the survival of 210 trees per acre with an average height of 10 feet at the end of Year 7 of the monitoring period. Invasive and noxious species will be monitored and controlled so that none become dominant or alter the desired community structure of the site. If necessary, EBX will develop a species-specific control plan. 4.1.3.4 Wetland Hydrology Wetland hydrology will be monitored to document hydric conditions in the wetland re-establishment areas. This will be accomplished with automatic recording pressure transducer gauges installed in representative locations across the re-establishment areas and reference wetland. The gauges will be downloaded quarterly and wetland hydroperiods will be calculated during the growing season. Gauge installation will follow current USACE guidance and success criteria will include specific hydrology standards (i.e. percent of growing season). Visual observations of primary and secondary wetland hydrology indicators will also be recorded during quarterly site visits. Blackstar Mitigation Site PROPSECTUS RES Cape Fear 04 Umbrella Bank 10 Apri12017 4.1.3.5 Adaptive Management The Mitigation Plan will include a detailed adaptive management plan that will address how potential problems are resolved. In the event that the site, or a specific component of the site, fails to achieve the defined success criteria, EBX will develop necessary adaptive management plans and/or implement appropriate remedial actions for the site in coordination with the IRT. Remedial actions will be designed to achieve the success criteria specified previously, and will include identification of the causes of failure, remedial design approach, work schedule, and monitoring criteria that will take into account physical and climatic conditions. If tree mortality affects 40 percent or greater of the canopy in a wetland re- establishment area, then a remedial/supplemental planting plan will be developed and implemented for the affected area(s). 5 BANK ESTABLISHMENT AND OPERATION 5.1 Establishment and Operation of the Bank This Bank Parcel shall be established under the terms and conditions of the RES Cape Fear 04 Umbrella Mitigation Banking Instrument (UMBI) made and entered into by and among Environmental Banc & Exchange, LLC, the U.S. Army Corps of Engineers (USACE), the U.S. Environmental Protection Agency (EPA), the U.S. Fish and Wildlife Service (USFWS), the National Marine Fisheries Services (NMFS), the North Carolina Department of Environmental Quality (NCDEQ), the North Carolina Division of Water Resources (NCDWR), and the North Carolina Wildlife Resources Commission (NCWRC), collectively, the Interagency Review Team. 5.2 Proposed Credit Release Schedule All credit releases will be based on the total credit generated as reported by the as-built survey of the Mitigation Site. The pre-construction credit release (15 percent) will be based on the credit total in the Final Mitigation Plan. The second credit release will be based on the As-Built survey, and will adjust the total released credits based on the actual constructed channel lengths. The District Engineer (DE), in consultation with the IRT, will determine if performance standards have been satisfied sufficiently to meet the requirements of the release schedule below. In cases where some performance standards have not been met, credits may still be released depending on the specifics of the case. At the direction of the DE, in consultation with the IRT, monitoring may be required to be extended, depending on the extent to which the site fails to meet the specified performance standard. The release of proj ect credits will be subj ect to the criteria described in Table 6. Blackstar Mitigation Site PROPSECTUS RES Cape Fear 04 Umbrella Bank 11 Apri12017 Table 6. Wetland Credit Release Schedule Monitoring Credit Release Activity Interim Total Year Release Released 1 Site Establishment (includes all required criteria 15% 15% stated above) 2 Baseline Monitoring Report and As-built Survey 15% 30% 3 First year monitoring report demonstrates 10% 40% performance standards are being met. 4 Second year monitoring report demonstrates 10% 50% performance standards are being met. 5 Third year monitoring report demonstrates 10% 60% performance standards are being met. 6* Fourth year monitoring report demonstrates 10% 70% performance standards are being met. � Fifth year monitoring report demonstrates 10% 80% performance standards are being met. g* Sixth year monitoring report demonstrates 10% 90% performance standards are being met. Seventh year monitoring report demonstrates 9 performance standards are being met, and project 10% 100% has received close-out approval. *Please note that vegetation plot data may not be required with monitoring reports submitted during these monitoring years unless otherwise stated by the Mitigation Plan or directed by the IRT. 5.2.1 Initial Allocation of Released Credits The initial allocation of released credits, as specified in the mitigation plan can be released by the IRT with written approval of the DE upon satisfactory completion of the following activities: 1. Approval of instrument modification by the DE, in consultation with the IRT; 2. Approval of a final Mitigation Plan; 3. Confirmation that the Bank site has been secured; 4. Delivery of executed financial assurances as specified in the Mitigation Plan; 5. Delivery of a copy of the recorded long-term protection mechanism as described in the Mitigation Plan, as well as a title opinion covering the property acceptable to the DE; and 6. Issuance of any DA permits necessary for construction of the Bank site (if necessary). 5.2.2 Subsequent Credit Releases The second credit release will occur after the completion of implementation of the Mitigation Plan and submittal of the Baseline Monitoring Report and As-built Survey. All subsequent credit releases must be approved by the DE, in consultation with the IRT, based on a determination that required performance standards have been achieved. As projects approach milestones associated with credit release, the Sponsor Blackstar Mitigation Site PROPSECTUS RES Cape Fear 04 Umbrella Bank 12 Apri12017 will submit a request for credit release to the DE along with documentation substantiating achievement of criteria required for release to occur. This documentation will be included with the annual monitoring report. 5.3 Financial Assurances The Sponsor shall provide financial assurances in the form of a Performance Bond to the IRT sufficient to assure completion of all mitigation work, required reporting and monitoring, and any remedial work required. Financial assurances shall be payable at the direction of the USACE to his designee or to a standby trust. Financial assurances structured to provide funds to the USACE in the event of default by the Bank Sponsor are not acceptable. A financial assurance must be in the form that ensures that the USACE receives notification at least 120 days in advance of any termination or revocation. 5.4 Proposed Ownership and Long-Term Management EBX, LLC, acting as the Bank Sponsar, will establish a Conservation Easement, and will monitor the Site for a minimum of seven years. The Mitigation Plan will provide detailed information regarding bank operation, including long term management and annual monitoring activities, for review and approval by the IRT. Upon approval of the Sites by the IRT, the site will be transferred to a long-term land steward (to be deternuned in the Mitigation Plan). The long-term steward shall be responsible for periodic inspection of the site to ensure that restrictions required in the Conservation Easement or the deed restriction document(s) are upheld. Endowment funds required to uphold easement and deed restrictions shall be negotiated prior to site transfer to the responsible party. The Bank Sponsor will ensure that the Conservation Easement will allow for the implementation of an initial monitoring phase, which will be developed during the design phase and conducted by the Bank Sponsor. The Conservation Easement will allow for yearly monitoring and, if necessary, maintenance of the Site during the initial monitoring phase. These activities will be conducted in accordance with the terms and conditions of the RES Cape Fear 04 Umbrella Mitigation Bank made and entered into by EBX, USACE, NCDWR, and other IRT agencies. 5.5 Assurance of Water Rights Sufficient water rights exist to support the long-term sustainability of the site, as there are no "severed" rights on the property. Blackstar Mitigation Site PROPSECTUS RES Cape Fear 04 Umbrella Bank 13 Apri12017 Figures " � _� ti. � d � r� � i ,� ,� r � - � t �, , , � _ v�11�. ; 0 250 500 - Feet FIGURE 3 Aerial Map Blackstar Mitigation Site Harnett County, North Carolina 1 � n f�� i '� � °� � Leqend . � Proposed Easement o�ie: a;za�zon Drawn by: BPB Checked by: xxxxxnxx WkB AtA „_ � � �, �• ' � a AtA . ' � �� We r,� ,! We r � Ro Ro � � �' : ` . � o� ��► �" � s� ��; '•- - � � � � StA StA y� � ''�a ,�•i � � `-� -�� ,. �� . WkB WkB StA .. At� "�w. , � AtA �� __ r � � Ro Ro � Y. � StA StA � "I . r1, � _ J t . ,1'. �� ; ::, �. � { � � � ,�.: ,� '� , * ��: � '* � . ��,_:� � � .�� ' ' � � � .0 �. � A a � K��- N � AtA �' StA � � �� .i ,� ; i 1 AtA ��f StA � AtA ?, � � 5J � f ; _ � �� - � AtA �� n�.� �°� �� ; � �,� We We r' � � ,.� 1,� a` s�'�� j _— r4..: � — �'r � I � � � I , I *;;, �. `� � . .... . .. r iy '� � We We � � , _ , �. � �`_ � ,*,_ , j � .h • r �.rf-, "' - � F '� jj ' .. . ' I -C�1' � i I " � ;; . �j � � � - -� - t� 1� �'*+4��, �,: F� - �� } �'� W��e r - 3 �,. WeJ1 » i� , StA StA �# �� . a_ , .�, � y � StA StA J " ' � 1 .:;�. S� ' � � . I �( � � � T r_ 11� . � . . � � � , �.. 1 ,'r � � . ' �' . . . i : ,*.h _ � � � StA ,� + �F'✓ � �M " �' _ StA `�i - � `�� Au �,.� �,_ Au _ '�#. . , '� _ � WkD WkD � StA Map Symbol Symbol Name StA - Leqend Ro Roanoke loam, oaasionally flooded ` � Proposed Easement Wk8 Wickham fine sandy loam, Oto 6 percent slopes, rarely flooded WkB AtA _ StA State fine sandy loam, Oto 3 percent slopes, rarely flooded Wkg AtA _ Soil Boundaries AtA Altavista fine sandy loam, Oto 3 percent slopes, rarely flooded Hydric Soils We Wahee fine sandy loam, occasionally flooded = WkD Wickham fine sandy loam, 6to 15 percent slopes, rarely flooded Wk6 � Wk6 - FIGURE 5 oaie: ar��zon - ,��, _ ��"�� Soils Map orawr, ey: aPa � ; 0 250 500 Blackstar Mitigation Site Checked by: xxxxxnxx = Feel Harnett County, North Carolina _ .I . � -- ,.�� , � , � _ yr ,. I � ,� I� � i�� F� - - ' ,� ��" y � �� = p � r- "_n�= — �: � . _'1 1 ��.. _. _ r } � _ L `� _.-- — Q: � ` _ r� r . _ � 1 � �� ,�l.�f � � � ` � + _ �; ,i' . . � � � r 7 . �' ,� .. �;:. ,f�f # .J1 ..� . � i� ' r••■r M F ��• i � +� � y ,'J. � • �{+� 1 L � ' a �� a�� , � y �' , � ' �•. �'' ,�� ' d. �t �' � Y�i, , 1 � �� f .' / . .�I . . � � , �f:� 1 � . � . , � > p,.� i^�,-`,�'� ` � l �� i III � {��{� s"� �' �`:�' � �'�' '. ;T r � � /; � .�',. ii ,�": %" 1� � ,j�' � : , ' , / , I r � ' � � � � � �' r � � � �: yi �� . _ � ' f,.�� 1 ,s�r•"r' ' � t ' � �� , �, r ,, `� - �- Existing , �. ' ��, y � � Farm Crossing ;�' ' , . . . � � r� �V �,, - f �/: • y; '� . ;��i � .�j:. `' f; �r - . � ��f i ' �. x y" + / ` ., '1� r _ ' ._ '■ _ � " ? f/!' /r,.1��ff ` fy:`'% .a",� f �j,. � �. : �/ � , . . � f�7 �y�•, / `]'' l �r �.`�}� . .�r. . . � . ! r �(�/ � � ; � ,i _�' � . . '' .!� . : r`� '.� � �Y - . � . .. . � � 9 i'%i� �� _ � �... � , . . � , � �• � � � � � . 4 . � . ', �� '?�j l � . -'�' { �_- ' . i .,- �. / - il J ,'� + r ' ^ I, - /.:' ' � EXIStlllg }f'� I � �f � � r� y -' � Farm Crossin . �� '� . g , j;,, , ';, l ._ _""__ ._ _ ._ _ ... � . . , f i ' � . - . � . /� : . .. . i � ' '' � , r � . �� i��` - �' ' � "r� �, ,� i `t^ � r i � = ,�. ,,' �f - , ,�� '�� ,! ; � _ � - iu - —, I I�— = �� ` L� .�'. � _ - "' +� � Proposed Easement , ;y 'f ` FEMA Zone AE �� , FIGURE 6 Date: 4/19/2017 _ v�i'�� _ sl Constraints Map Drawn by: BPB '- 0 250 500 Blackstar Mitigation Site Checked by: xxxxxnxx = Feel Harnett County, North Carolina ti y � � - �, ' "R � # �' t . �� L' � � � � � , ;� 'i �- ' � '�� ,., .+' }r f r _ TM I �' ` -_ �5 � r r i � �� - r �I;�= ��' �i x ' r�,� •f� �* � � �ta.:.� r+�`,: ,�`'' ' `. � . � �. � � . - ?,'' �rt� � � _ • 1 � ��,� � ` ' '+r f� �"` ' �''�` �� ,,,� � _ F >� �"'`' - • � �.. _ � � . P,. , 4 ■ � _ '�� -- - � �. �:�'' `�ia� l'., � ' 1 � I �-, 'I,' . � � � ; li ' � _ tl! _ ` - vl(. If - � .: o-,,_ F�� I ^ _ _ tilo ��, d _ r � fF � �a q.,r. � .. _ �r : �1 � . - �' i' � . u�: rq��.�' - y�- I - .' i+ ' � � . 7 � _ �° � � � . �e`'= , . ,,� � :. � V � } � • � � �,. rc;�,�� [' �� '� �.I �� : �'Y � � � — � I,!';, . � . , �. � � � . ='�I . . . . � ..tie. � .. � � � � � �,I � � � � � �� - _ � '� ' - r •�� ! . ., _ - '�! �q ,-�, � ` _ ,:,�: � i� � # - - �'� �t• _ : _ ' �% � �t, . +� ' i'� - d .�r' I �� . - � ' .��' - � '�� :� !+- q �''t "�;� i' , ,� � _ � , �� - � - � �r+f�,+- y�� t=' �� ; - '� j �`� � � •� �k'' � t . 3 �� • i� ,.' �9 .. � A5 � , a. - ;� �` '� _�� ` '�� ; � � � � �F , �-r:l� � �� - � . _ ��.i.�� . . - a ''r , d� � � � 5� �/ . �� { 4 � � .�� ; �..� *�� : � , ,�' �G �° _ .� ,.. 4 �e3 - I '_ ��" . '.� . �'A�• ��ih� '�y / . �� 1 V� ._,y� .. _ _ . �� yti*� �� ' � _ _ _ f .� '., �'" � • �%' ' = Mitigation Approach Acres Ratio WMUs Lepend Re-establishment 10.76 1:1 10.76 � � Proposed Easement - Re-establishment 1.71 1:1 1.74 � �a Wetland Re-establishment - = Enhancement 7.45 2:1 3J3 -. i Wetland Enhancement - TOTAL 19.92 16. 23 = FIGURE 7 o�ie: a;zvzon - ,� �T�� . = ��' Conceptual Map o�aW" ey 6PB '- 0 250 500 Blackstar Mitigation Site Checked by: xxxxxnxx = Feel Harnett County, North Carolina Appendix A— Landowner Authorization Form Landowner Authorization Form Site: Blackstar Property Legal Description Deed Book: 707 Page: 534 Counry: Harnett Pazcel ID Number: 120585 0030 Street Address: 2421 BEAVER DAM RD , ERWIN, NC, 28339 Property Owner (please print): Wellons Prouerties, Inc. Authorized Invitee (please print): Judson Smith 'I7ie undersigned, authorized invitee (pursuant to the Agreement Regarding Proposed Mitigation Project) of the above property, does hereby authorize Resowce Environmental Solutions, the NC Division of Water Resources, and the US Army Corps of Engineers, the'v employees, agents or assigns to have reasonable access to the above referenced property for the evaluation of the property as a potential stream, wetland, and or riparian buffer restoration project, including conducting stream and or wetland determinations and delineations, as well as issuance and acceptance of any required permit(s) or certification(s). Property Owner Address: P O BOX 1254 DLJNN. NC 28334-0000 (if different from above) UWe hereby certify the above information to be true and accurate to the best of my/our knowledge. (Authorized Invrtee Signature) Date Appendix B— NC WAM Forms NC WAM Wetland Rating Sheet Accompanies User Manual Version 5.0 Wetland Site Name Blackstar- Area 1 Wetland Type Riverine Swamp Forest Date Assessor Name/Organization Notes on Field Assessment Form (Y/N) Presence of regulatory considerations (Y/N) Wetland is intensively managed (Y/N) Assessment area is located within 50 feet of a natural tributary or other open water (Y/N) Assessment area is substantially altered by beaver (Y/N) Assessment area experiences overbank flooding during normal rainfall conditions (Y/N) Assessment area is on a coastal island (Y!N) 04/18/2017 RES NO NO YES NO NO NO NO Sub-function Rating Summary Function Sub-function Metrics Rating Hydrology Surface Storage and Retention Condition LOW Sub-Surface Storage and Retention Condition LOW Water Quality Pathogen Change Condition LOW Condition/Opportunity LOW Opportunity Presence? (Y!N) NO Particulate Change Condition LOW Soluble Change Physical Change Pollution Change Condition/Opportunity Opportunity Presence? (Y/N) Condition Condition/Opportunity Opportunity Presence? (Y/N) Condition Condition/Opportunity Opportunity Presence? (Y/N) Condition LOW NO LOW LOW NO LOW LOW NO NA Condition/Opportunity NA Opportunity Presence? (Y/N) NA Habitat Physical Structure Condition LOW Landscape Patch Structure Condition LOW Vegetation Composition Condition LOW Function Rating Summary Function Metrics/Notes Rating Hydrology Condition LOW Water Quality Condition LOW Condition/Opportunity LOW Opportunity Presence? (Y/N) NO Habitat Condition LOW Overall Wetland Rating LOW NC WAM Wetland Rating Sheet Accompanies User Manual Version 5.0 Wetland Site Name Blackstar- Area 2 Wetland Type Riverine Swamp Forest Date Assessor Name/Organization Notes on Field Assessment Form (Y/N) Presence of regulatory considerations (Y/N) Wetland is intensively managed (Y/N) Assessment area is located within 50 feet of a natural tributary or other open water (Y/N) Assessment area is substantially altered by beaver (Y/N) Assessment area experiences overbank flooding during normal rainfall conditions (Y/N) Assessment area is on a coastal island (Y!N) 04/18/2017 RES NO NO YES YES NO YES NO Sub-function Rating Summary Function Sub-function Metrics Rating Hydrology Surface Storage and Retention Condition LOW Sub-Surface Storage and Retention Condition LOW Water Quality Pathogen Change Condition LOW Condition/Opportunity LOW Opportunity Presence? (Y!N) NO Particulate Change Condition LOW Soluble Change Physical Change Pollution Change Condition/Opportunity Opportunity Presence? (Y/N) Condition Condition/Opportunity Opportunity Presence? (Y/N) Condition Condition/Opportunity Opportunity Presence? (Y/N) Condition LOW NO LOW LOW NO LOW LOW NO NA Condition/Opportunity NA Opportunity Presence? (Y/N) NA Habitat Physical Structure Condition MEDIUM Landscape Patch Structure Condition LOW Vegetation Composition Condition HIGH Function Rating Summary Function Metrics/Notes Rating Hydrology Condition LOW Water Quality Condition LOW Condition/Opportunity LOW Opportunity Presence? (Y/N) NO Habitat Condition MEDIUM Overall Wetland Rating LOW NC WAM Wetland Rating Sheet Accompanies User Manual Version 5.0 Wetland Site Name Blackstar- Area 3 Wetland Type Riverine Swamp Forest Date Assessor Name/Organization Notes on Field Assessment Form (Y/N) Presence of regulatory considerations (Y/N) Wetland is intensively managed (Y/N) Assessment area is located within 50 feet of a natural tributary or other open water (Y/N) Assessment area is substantially altered by beaver (Y/N) Assessment area experiences overbank flooding during normal rainfall conditions (Y/N) Assessment area is on a coastal island (Y!N) 04/18/2017 RES NO NO YES NO NO NO NO Sub-function Rating Summary Function Sub-function Metrics Rating Hydrology Surface Storage and Retention Condition LOW Sub-Surface Storage and Retention Condition LOW Water Quality Pathogen Change Condition LOW Condition/Opportunity LOW Opportunity Presence? (Y!N) NO Particulate Change Condition LOW Soluble Change Physical Change Pollution Change Condition/Opportunity Opportunity Presence? (Y/N) Condition Condition/Opportunity Opportunity Presence? (Y/N) Condition Condition/Opportunity Opportunity Presence? (Y/N) Condition LOW NO LOW LOW NO LOW LOW NO NA Condition/Opportunity NA Opportunity Presence? (Y/N) NA Habitat Physical Structure Condition LOW Landscape Patch Structure Condition LOW Vegetation Composition Condition LOW Function Rating Summary Function Metrics/Notes Rating Hydrology Condition LOW Water Quality Condition LOW Condition/Opportunity LOW Opportunity Presence? (Y/N) NO Habitat Condition LOW Overall Wetland Rating LOW