20170537 Ver 2_Credit Release Task 4_20200127

ROY COOPER
Governor
MICHAEL S. REGAN
Secretary
LINDA CULPEPPER
Director
NORTH CAROLINA
Environmental Quality
January 27, 2020
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 4
Dear Mr. Breslow:
On December 9, 2019, the Division of Water Resources (DWR) received a Year 1 Monitoring Report
from Resource Environmental Solutions, LLC on behalf of EBX Neuse 1, LLC (EBX) for the
Hannah Bridge site. Vegetative plot data confirms that success criteria throughout most the site is
greater than the required 260 stems/acre. However, plots #11 and #16 did not meet performance
standards. Lastly, no encroachment within the easement boundaries was observed. EBX proposes to
replant the areas lacking in stem density in Spring 2020, and DWR supports this action.
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.
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
4) Monitoring Report #l: Approved by the DWR 10%
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) and 10% of your Neuse buffer Restoration credits (0.10 x
199,724.56 ft2 = 19,972.46 ft2) are now available to sell.
Lastly, 10% of your Neuse buffer Preservation credits (0.10 x 7,396.49 ft2 = 739.65 ft2) and 10% of
your Neuse buffer Enhancement credits from cattle exclusion (0.10 x 4,907.04 ft2 = 490.70 ft2) 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

Hannah Bridge Site
EBX
January 27, 2020
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.
Sincerely,
'�)' " ""6t�
Katie Merritt
401 & Buffer Permitting Branch
cc:File Copy (Katie Merritt)
Caitlan Parker (EBX) — via electronic mail
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