20170537 Ver 2_Credit Release task 3_20191204

ROY COOPER
Governor
MICHAEL S. REGAN
Secretary
LINDA CULPEPPER
Director
NORTH CAROLINA
Environmental Quality
-DcCember
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Brad Breslow DWR Project #: 2017-0537v2
EBX Neuse 1, LLC Johnston County
302 Jefferson Street, Suite 110
Raleigh, NC 27605
Re: RES Neuse Buffer & Nutrient Offset Umbrella Mitigation Banking Instrument (UMBI)
Hannah Bridge Bank Parcel Credit Release — Task 3
Dear Mr. Breslow:
On September 23, 2019, the Division of Water Resources (DWR) received an As -Built Report from
Resource Environmental Solutions on behalf of EBX Neuse 1, LLC (EBX) for the Hannah Bridge
Mitigation site. According to the As -Built survey submitted with the As -Built Report, there are
slight adjustments in the total amounts of Buffer Mitigation credits and Nitrogen Nutrient Offset
credits as compared to the Bank Parcel Development Package. The subject site has generated 4.59
acres (199,724.56 ft2) of buffer restoration credits, 0.11 acres (4,907.04 ft2 ) of buffer enhancement
credits, 0.30 acres (7,396.49 ft2) of buffer preservation credits and 4.79 acres (10,891.71 lbs) of
Nitrogen nutrient offset credits. The credits being released have been modified to reflect any
changes to the creditable acreage as proposed in the BPDP.
Additionally, vegetation plots 3, 6 and 12 are not located entirely within the nutrient offset credited
areas, even though their locations are as proposed in the approved BPDP. Half of each plot is located
within a nutrient offset area and half is located within a wetland credit area. DWR requests that plots
be located entirely within the appropriate crediting areas. Plots should not be split between a 404
credit area and a State credit area. Therefore, DWR requires that EBX conduct 3 vegetation transects
each year, beginning in Year 2, in addition to providing individual plot data. One transect shall be
placed entirely within the nutrient offset area near plot 12, one transect shall be placed entirely within
the nutrient offset area near plot 3, and one transect shall be placed entirely within the nutrient offset
area near plot 6. Transects shall include the same vegetation data and be of the same size as each
plot.
A written commitment from EBX to provide the requested transect data each year, beginning in
Monitoring Year 2 and provided through Year 5 should be included in the Year 1 Monitoring Report.
DWR received a performance bond (#9321945) in the amount of $100,000 issued to EBX from
Fidelity & Deposit Company of Maryland, to cover monitoring and maintenance at the subject site.
The term of this bond applies from September 17, 2019 through September 17, 2020. Future credit
releases will be dependent on both the renewal of this performance bond and the annual monitoring
reports.
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

Hannah Bridge Site
EBX
December 4, 2019
In accordance with the UMBI, signed on January 31, 2018, the following Project Milestones have
been met and the corresponding credits shall be released:
Task/Milestones
Credit
3) Mitigation Site Earthwork, Planting and Installation of 10%
Monitoring Devices Completed
TOTAL: 10%
By copy of this correspondence, DWR confirms that you have satisfied the above requirements for
the above -referenced tract and 10% of your Nitrogen nutrient offset credits
(0.10 x 10,891.71 lb-N = 1,089.17 lb-N) minus 54.49 lbs-N yields 1,034.68 lbs-N that are now
available to sell. And, 10% of your Neuse buffer Restoration credits (0.10 x 199,724.56 ft2 =
19,972.46 ft2) plus 1,568.95 ft2 yields 21,541.41 ft2 that are now available to sell.
Lastly, 10% of your Neuse buffer Preservation credits (0.10 x 7,396.49 ft2 = 739.65 ft2) minus
399.38 ft2 yields 340.27 ft2 that would be available to sell. However, 10% of your Neuse buffer
Enhancement credits from cattle exclusion (0.10 x 4,907.04 ft2 490.70 ft2) minus 920.23 ft2 yields
-429.53 ft2. Since the Neuse buffer Enhancement and Preservation credits are shown on the same
credit ledger for this site, the combined available credits issued with this release is-30.15. Therefore,
EBX must deduct 30.15 ft2 from the credit ledger to account for the negative amount.
Please note that nutrient offset credits generated at this site must be used for impacts in HUC
03020201 of the Neuse River Basin excluding the Falls Lake Watershed pursuant to 15A NCAC
02B .0240. Additionally, the riparian buffer credits must be used for impacts in the Neuse
River Basin in accordance with guidelines in the Consolidated Buffer Mitigation Rule, 15A
NCAC 02B .0295, which became effective on November 1, 2015.
Please feel free to call [phone] if you have any questions regarding this correspondence.
Si cer ly,
C
at' Merritt
401 & Buffer Permitting Branch
KAH/km
cc:File Copy (Katie Merritt)
Caitlan Parker (EBX) — via electronic mail
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