20160225 Ver 2_Credit Release Task 4_1-2020_20200109

ROY COOPER
Governor
MICHAEL S. REGAN
Secretary
LINDA CULPEPPER
Director
NORTH CAROLINA
Environmental Quality
January 9, 2020
John Hutton DWR Project #: 2016-0225v2
Wildlands Holdings IV, LLC Alamance County
312 West Millbrook Rd, Suite 225
Raleigh, NC 27609
Re: Cane Creek Umbrella Mitigation Banking Instrument (UMBI)
South Fork Nutrient Offset & Buffer Mitigation Bank
Credit Release— Task 4
Dear Mr. Hutton:
On October 4, 2019, the Division of Water Resources (DWR) received a Year 1 Monitoring Report
from Wildlands Engineering, Inc. on behalf of Wildlands Holdings IV, LLC (Wildlands) for the
South Fork site. Vegetative plot data confirms that success criteria throughout the site is greater than
the required 260 stems/acre. Additionally, no encroachment within the easement boundaries was
observed.
DWR received a continuation certificate and bond rider for the performance bond (#107063164) in
the amount of $80,000 issued to Wildlands from Travelers Casualty and Surety Company of
America, to cover monitoring and maintenance at the subject site. The term of this bond applies
beginning January 6, 2020 and ends with DWR approval of the Year 2 Monitoring Report. Future
credit releases will be dependent on both the renewal of this performance bond and the annual
monitoring reports.
In accordance with the UMBI, signed on March 6, 2018, 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%
TOTAL: 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 and
Enhancement credits (0.10 x 3 0,95 5 ft2 = 3,095.50 ftZ) as well as 10% of your Jordan Lake riparian
buffer Enhancement (via cattle exclusion) and Preservation credits (0.10 x 187,561 ft2 = 18,756.10
ftZ) are being released and are now available to sell.
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

South Fork Site
Wildlands
January 9, 2020
Additionally, 10% of your generated nitrogen offset credits (0.10 x 11,066.85 = 1,106.69 lb-N) and
10% of your generated phosphorus credits (0.10 x 707.55 = 70.76 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 03030002050050 are
71 % for nitrogen and 67% for phosphorous. Therefore, the total amounts of delivered nutrient offset
credits for this site are 7,857.46 lb-N and 474.061b-P. By copy of this correspondence, 10% of your
delivered nitrogen offset credits (0.10 x 7,857.46 lb-N = 785.75 lb-N) and 10% of our delivered
phosphorus credits (0.10 x 474.06 = 47.41 lb-P) are being released and are now available to sell.
Please note that of the nutrient offsets, 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 Katie Merritt at [phone] if you have any questions regarding this
correspondence.
Sincerely,
Katie Merritt
401 & Buffer Permitting Branch
cc:File Copy (Katie Merritt)
Robert Bugg/Ian Hazelhoff — Wildlands (via electronic mail)
1` i 2 12