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Home My WebLink About20180182 Ver 1_USACE MBI and Mitigation Plan Approval_20200128Strickland, Bev From: Kichefski, Steven L CIV USARMY CESAW (USA) <Steven.L.Kichefski@usace.army.mil> Sent: Tuesday, January 28, 2020 12:29 PM To: Cidney Jones Cc: Tugwell, Todd J CIV USARMY CESAW (US); Haupt, Mac; Kim Browning; Davis, Erin B; Bowers, Todd; Byron Hamstead (byron_hamstead@fws.gov); Leslie, Andrea J; Wilson, Travis W.; Gledhill-earley, Renee; Crumbley, Tyler A CIV USARMY CESAW (USA); McLendon, C S CIV USARMY CESAW (USA); Jones, M Scott (Scott) CIV USARMY CESAW (USA) Subject: [External] Red Barn Mitigation Bank Instrument and Mitigation Plan Approval (SAW-2017-01927) Attachments: Red Barn MBI-Authorized 12-18-2019.pdf, SAW-2017-01927 _Red BarnMitBank_Approval.pdf CAUTION: External email. Do not click links or open attachments unless you verify. Send all suspicious email as an attachment to report.spam@nc.gov<maiIto: report.spam@nc.gov> Cidney, Please see the attached signed instrument for the Red Barn Mitigation Bank Instrument and the approval letter for the Red Barn Final Mitigation Plan. Please note that the approved instrument, final plan, design plans submitted with the PCN, as well as all applicable general and regional conditions must be strictly adhered to in order for the authorization to remain valid. Feel free to contact me with any questions. This electronic copy is your official Department of the Army authorization; no paper copy will be mailed. Regards, Steve Kichefski Regulatory Project Manager U.S. Army Corps of Engineers Wilmington District, Asheville Field Office 151 Patton Avenue, Suite 208 Asheville, NC 28801 (828)-271-7980 Ext. 4234 The Wilmington District is committed to providing the highest level of support to the public. To help us ensure we continue to do so, please complete the Customer Satisfaction Survey located at our website at http://corpsmapu.usace.army.mil/cm_apex/f?p=136:4:0 to complete the survey online. AGREEMENT TO ESTABLISH THE RED BARN MITIGATION BANK IN THE YADKIN RIVER BASIN (HUC 03040101), SURRY COUNTY, NORTH CAROLINA July 2019 USACE approval of this Instrument constitutes the regulatory approval required for the Red Barn Mitigation Bank Site to be used to provide compensatory mitigation for Department of the Army permits pursuant to 33 C.F.R. 332.8(a)(1). This Instrument is not a contract between the Sponsor or Property Owner and USACE or any other agency of the federal government. Any dispute arising under this Instrument will not give rise to any claim by the Sponsor or Property Owner for monetary damages. This provision is controlling notwithstanding any other provision or statement in the Instrument to the contrary. This Mitigation Banking Instrument (MBI) is made and entered into on this_f&_day of Dc-e^9(2019, by Ecosystem Planning and Restoration (EPR) PLLC hereinafter Sponsor, and the U.S. Army Corps of Engineers (Corps), and each of the following agencies, upon its execution of this MBI; the Environmental Protection Agency (EPA), the U.S. Fish and Wildlife Service (FWS), the National Marine Fisheries Service (NMFS), the North Carolina Wildlife Resources Commission (NCWRC), the State Historic Preservation Office (SHPO) and the North Carolina Division of Water Resources (NCDWR). The Corps, together with the State and Federal agencies that execute this MBI, are hereinafter collectively referred to as the Interagency Review Team (IRT). WHEREAS the purpose of this agreement is to establish a mitigation bank (Bank) providing compensatory mitigation for unavoidable wetland and/or stream impacts separately authorized by Section 404 Clean Water Act permits and /or Section 10 of the Rivers and Harbors Act permits in appropriate circumstances; WHEREAS the agencies comprising the IRT agree that the Bank site is a suitable mitigation bank site, and that implementation of the Mitigation Plan is likely to result in net gains in wetland and/or stream functions at the Bank site, and have therefore approved the Mitigation Plan; THEREFORE, it is mutually agreed among the parties to this agreement that the following provisions are adopted and will be implemented upon signature of this MBI. Section I: General Provisions A The Sponsor is responsible for assuring the success of the restoration, rehabilitation, creation, and enhancement activities at the Bank site, and for the overall operation and management of the Bank. The Sponsor assumes the legal responsibility for providing the compensatory mitigation once a permittee secures credits from the Sponsor and the District Engineer (DE) receives documentation that confirms the Sponsor has accepted responsibility for providing the required compensatory mitigation. B. The goals of the Bank site are to restore, rehabilitate, enhance, and create wetland and stream systems and their functions to compensate in appropriate circumstances for unavoidable wetland and stream impacts authorized by Section 404 of the Clean Water Act permits and or Section 10 of the Rivers and Harbors Act permits in circumstances deemed appropriate by the Corps after consultation, through the permit review process, with members of the IRT. C. Use of credits from the Bank to offset wetland and stream impacts authorized by Clean Water Act permits must be in compliance with the Clean Water Act and implementing regulations, including but not limited to the 404(b)(1) Guidelines, the National Environmental Policy Act, and all other applicable Federal and State legislation, rules and regulations. This agreement has been drafted in accordance with the regulations for Compensatory Mitigation for Losses of Aquatic Resources effective June 9, 2008 (33 CFR Parts 325 and 332) (Mitigation Rule). D. The IRT shall be chaired by the DE of the U.S. Army Corps of Engineers, Wilmington District (District). The IRT shall review documentation for the establishment of mitigationbank sites. The IRT will also advise the DE in assessing monitoring reports, recommending remedial measures, approving credit releases, and approving modifications to this instrument. The IRT's role and responsibilities are more fully set forth in Sections 332.8 of the Mitigation Rule. The IRT will work to reach consensus on its actions. E The DE, after consultation with the appropriate Federal and State review agencies through the permit review process, shall make final decisions concerning the amount and type of compensatory mitigation to be required for unavoidable, permitted wetland and/or stream impacts, and whether or not the use of credits from the Bank is appropriate to offset those impacts. In the case of permit applications and compensatory mitigation required solely under the Section 401 Water Quality Certification rules of North Carolina, the NCDWR will determine the amount of credits that can be withdrawn from the Bank. Any credits used to offset impacts solely authorized by Section 401 cannot be used for other impacts authorized under Section 404 of the Clean Water Act or Section 10 of the Rivers and Harbors Act. F. The parties to this agreement understand that a watershed approach to establish compensatory mitigation must be used to the extent appropriate and practicable. Where practicable, in -kind compensatory mitigation is preferred. Section II: Geographic Service Area The Geographic Service Area (GSA) is the designated area within which the Bank is authorized to provide compensatory mitigation required by DA permits. The GSA for this Bank shall include the entire Yadkin River Basin Hydrologic Unit 03040101 within North Carolina. Credits are to be used in the same HUC in which they were generated. 2 Section III: Mitigation Plan Any Mitigation Plan submitted pursuant to this agreement must contain the information listed in 332.4(c) (2) through (14) of the Compensatory Mitigation Rule. A. The Sponsor will perform work described in the approved Mitigation Plan. B. The Sponsor shall monitor the Bank Site as described in the approved Mitigation Plan, until such time as the IRT determines that the performance standards described inthe Mitigation Plan have been met. C. Mitigation Plans submitted for inclusion in this bank must meet the requirements of any District guidance that is current at the time the new site is submitted to the District, including any updates made to monitoring requirements, credit releases, long term management, or any other provisions that are required and/or specifically addressed in the Mitigation Plan. The addition of any site to this instrument shall be considered as a modification to this instrument and processed in accordance with the procedures set forth in the Mitigation Rule. D. The members of the IRT will be allowed reasonable access to the Property for the purposes of inspection of the Property and compliance monitoring of the Mitigation Plan. Section IV: Reporting A. The Sponsor shall submit to the DE, for distribution to each member of the IRT, an annual report describing the current condition of the Bank Site and the condition of the Bank Site in relation to the performance standards in the Mitigation Plan. The Sponsor shall provide to the DE any monitoring reports described in the Mitigation Plan. B. As part of each annual monitoring report, the Sponsor shall also provide ledgerreports documenting credit transactions as described in Section VIII of this MBI. C. Each time an approved credit transaction occurs, the Sponsor shall provide notification to the DE within 30 days of the transaction. This notification shall consist of a summary of the transaction and a full ledger report reflecting the changes from the transaction. Additionally, signed copies of the Compensatory Mitigation Transfer of Responsibility Form shall be submitted to the Corps Project Manager for the permit and the Corps Bank Manager for the bank site. Section V: Remedial Action A. The DE shall review the monitoring reports, as required in the Mitigation Plan, and may, at any time, after consultation with the Sponsor and the IRT, direct the Sponsor to take remedial action at the Bank site. Remedial action required by the DE shall be designed to achieve the performance standards as specified in the Mitigation Plan. All remedial actions required under this section shall include a work schedule and monitoring criteria that will take into account physical and climactic conditions. B. The Sponsor shall implement any remedial measures required pursuant to the above. C. In the event the Sponsor determines that remedial action may be necessary to achieve the required performance standards, it shall provide notice of such proposed remedial action to all members of the IRT. No remedial actions shall be taken without the concurrence of the DE, in consultation with the IRT. Section VI: Use of Mitigation Credits A. Description of credit classifications and provisions pertaining to the use of those credits shall be provided in the Mitigation Plan to be included in this bank. Credit classifications (e.g., cold water stream, cool water stream, warm water stream, coastal wetlands, non -riparian wetlands, riparian non-riverine wetlands, and riparian riverine wetlands) will be in accordance with current District guidance at the time the Mitigation Plan is submitted to the District. In general, these classifications will be used to determine if a particular credit qualifies as "In - Kind" mitigation. Exceptions to the use of "In -Kind" mitigation may be allowed at the discretion of the permitting agencies on a case -by -case basis. B. Wetland and stream compensation ratios are determined by the DE on a case -by -case basis based on considerations of functions of the wetlands and/or streams impacted, the severity of the wetland and/or stream impacts, the relative age of the mitigation site, whether the compensatory mitigation is in -kind, and the physical proximity of the wetland and/or stream impacts to the Bank Site. C. Notwithstanding the above, all decisions concerning the appropriateness of using credits from the Bank to offset impacts to waters and wetlands, as well as all decisions concerning the amount and type of such credits to be used to offset wetland and stream impacts authorized by Department of the Army permits, shall be made by the DE, pursuant to Section 404 of the Clean Water Act and implementing regulations and guidance. These decisions may include notice to and consultation with the members of the IRT through the permit review process if the DE determines this to be appropriate given the scope and nature of the impact. Section VII: Credit Release Schedule A. All credit releases must be approved in writing by the DE, following consultation with the IRT, based on a determination that required performance standards have been achieved. B. A credit release schedule shall be provided in the Mitigation Plan that is included in this bank. The release schedule will list all of the proposed credit releases and any performance standards associated with those releases. C. In general, the initial allocation of credits shall be available for sale only after the completion of all of the following: 1. Execution of this MBI by the Sponsor, the DE, and other agencies eligible for 4 membership in the IRT who choose to execute this agreement, to include the approval of any modifications to this agreement when new sites are added to it; 2. Approval of a final Mitigation Plan; 3. Confirmation that the mitigation 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 inas specified 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 mitigation site (if necessary). The Sponsor must initiate implementation of the approved Mitigation Plan no later than the first full growing season after the date of the first credit transaction (i.e., construction of the initial physical and biological improvements proposed in the approved Mitigation Plan must be started by the end of the first full growing season following the initial sale of any credits from the Bank. This provision does not apply to preservation -only sites that do not include any physical or biological improvements. Subject to the Sponsor's continued satisfactory completion of all required performance standards and monitoring, additional restoration mitigation credits will be available for sale by the Sponsor as specified in the final Mitigation Plan. Section VIIL• Accounting Procedures A. The Sponsor shall develop accounting procedures acceptable to the DE for maintaining accurate records of debits made from the Bank. Such procedures shall include the generation of a ledger by the Sponsor showing credits used at the time they are debited from the Bank. All ledger reports shall identify credits debited and remaining by type of credit and shall include for each reported debit the Corps ORM ID number for the permit for which the credits wereutilized and the permitted impacts for each resource type. B. When credits from the bank are sought by a permit applicant, the Sponsor shall prepare reservation letter for the applicant to include with the Corps permit application, that documents the number and type of credits available to be debited from the bank, and the amount of time (if any) that those credits will be held for that applicant (with an expiration date for the letter of availability). C. Each time an approved credit transaction occurs, the Sponsor shall notify the DE within 30 days of the transaction with a summary of the transaction and a full ledger report showing the changes made. Signed copies of the Transfer of Mitigation Responsibility form shall also be submitted to the Corps permit Project Manager and the Corps Bank Manager for that bank. D. The Sponsor shall prepare an annual ledger report, on each anniversary of the date of execution of this agreement, showing all credits used, any changes in credit availability (e.g., additional credits released, credit sales, suspended credits, etc.), and the beginning and ending balance of remaining credits. The Sponsor shall submit the annual report to the DE, for distribution to each member of the IRT, until such time as all of the credits have been utilized, or this agreement is otherwise terminated. Section IX: Financial Assurances A. Financial assurances for the Bank site will be detailed in the Mitigation Plan. The Sponsor shall provide financial assurances in a form acceptable to the DE, sufficient to assure completion of all mitigation work, required reporting and monitoring, and any remedial work required pursuant to this MBI. The financial assurance value should be based on the cost of doing the mitigation work, including costs for land acquisition, planning and engineering, legal fees, mobilization, construction, and monitoring. For preservation only Bank Sites, no financial assurances will generally be required unless there are specific activities necessary to ensure the successful preservation of resources on the site, in which case appropriate financial assurances may still be required. B. All financial assurances shall be made payable to a standby trust or to a third -party designee, acceptable to the Corps, who agrees to complete the project or provide alternative mitigation. Financial assurances structured to provide funds to the Corps in the event ofdefault by the Bank Sponsor are not acceptable. C. The form and amount of financial assurances must be stated in the Mitigation Plan in order for the Mitigation Plan to be approved. This must include the name of the specific provider of those assurances and the method by which the financial assurances will be provided in the event that they must be utilized. Original copies of the financial assurance documents must be provided to the DE prior to the initial release of credits. D. A financial assurance must be in the form that ensures that the DE receives notification at least 120 days in advance of any termination or revocation. Section X: Site Protection A The Sponsor shall grant a Conservation Easement (CE) in form acceptable to the DE, sufficient to protect the Bank Site in perpetuity. The CE shall be perpetual, preserve all natural areas, and prohibit all use of the property inconsistent with its use as mitigation property, including any activity that would materially alter the biological integrity or functional and educational value of wetlands or streams within the Bank Site, consistent with the Mitigation Plan. The purpose of the CE will be to assure that future use of the Bank Site will result in the restoration, protection, maintenance and enhancement of wetland and/or stream functions described in the Mitigation Plan. The name and contact information for the Corps approved easement holder and a draft copy of the CE will be provided in the Mitigation Plans. B. The Sponsor shall deliver a title opinion acceptable to the DE covering the mitigation property. The property shall be free and clear of any encumbrances that would conflict with its use as mitigation, including, but not limited to, any liens that have priority over the recorded CE. C. Subsequent to the recording of the CE, the Sponsor may convey the Bank Site property either in fee or by granting an easement to a qualified land trust, state agency, or other appropriate nonprofit organization approved by the Corps. The Sponsor is responsible for ensuring that the CE is re -recorded so that it remains within the chain of title. The terms and conditions of this conveyance shall not conflict with the intent and provisions of the CE nor shall such conveyance enlarge or modify the uses specified in the easement. The CE must contain a provision requiring 60-day advance notification to the DE before any action is taken to void or modify the CE, including transfer of title to, or establishment of any other legal claims over, the project site. Section XI: Long-term Management A. The Sponsor shall implement the long-term management plan as described in the Mitigation Plan. The property that comprises the Bank is privately owned. The Sponsor will provide perpetual protection on the Bank through the establishment of a permanent conservation easement that will comply with the U.S. Army Corps of Engineers guidelines. B. The long-term management plan will include a list of annual maintenance, monitoring, and/or repair activities for the mitigation site, the associated annual cost for each activity, and the required total amount necessary to provide all future site management. The long-term management plan should explain how the funds will be managed and provided to the designated long-term manager (e.g., an endowment managed through a separate account holder). The long- term management plan should include a contingency section that addresses how the responsibility and funding for the long-term site management will be passed on to a new manager in the event that the selected long-term management entity is no longer able to provide for management of the site. Section XII: Default and Closure A. It is agreed to establish and maintain the Bank site until: (i) credits have been exhausted or banking activity is voluntarily terminated with written notice by the Sponsor provided to the DE and other members of the IRT; and (ii) it has been determined and agreed upon by the DE and IRT that the debited Bank site has satisfied all the conditions herein and in the Mitigation Plan. If the DE determines that the Bank site is not meeting performance standards or complying with the terms of the instrument, appropriate action will be taken. Such actions may include, but are not limited to, suspending credit sales, adaptive management, decreasing available credits, utilizing financial assurances, and terminating the instrument. B. Any delay or failure of Bank Sponsor shall not constitute a default hereunder if and to the extent that such delay or failure is primarily caused by any act, event or conditions beyond the Sponsor's reasonable control and significantly adversely affects its ability to perform its obligations hereunder including: (i) acts of God, lightning, earthquake, fire, landslide, or interference by third parties; (ii) condemnation or other taking by any governmental body; (iii) change in applicable law, regulation, rule, ordinance or permit condition, or the interpretation or enforcement thereof; (iv) any order, judgment, action or determination of any federal, state or local court, administrative agency or government body; or (v) the suspension or interruption of any permit, license, consent, authorization or approval. If the performance of the Bank Sponsor is affected by any such event, Bank Sponsor shall give written notice thereof to the IRT as soon as is reasonably practicable. If such event occurs before the final availability of all credits for sale, the Sponsor shall take remedial action to restore the property to its condition prior to such event, in a manner sufficient to provide adequate mitigation to cover credits that were sold prior to such delay or failure to compensate for impacts to waters, including wetlands, authorized by Department of the Army permits. Such remedial action shall be taken by the Sponsor only to the extent necessary and appropriate, as determined by the IRT. C. At the end of the monitoring period, upon satisfaction of the performance standards, the Sponsor may submit a request to the DE for site close out. The DE, in consultation with the IRT, shall use best efforts to review and comment on the request within 60 days of such submittal. If the DE determines the Sponsor has achieved the performance standards in accordance with the mitigation plan and all obligations under this MBI, the DE shall issue a close out letter to the Sponsor. Section XIII: Miscellaneous A. Modification of this MBI shall be in accordance with the procedures set forth in 332.8 of the mitigation rule. B. No third party shall be deemed a beneficiary hereof and no one except the signatories hereof, their successors and assigns, shall be entitled to seek enforcement hereof. C. This MBI constitutes the entire agreement between the parties concerning the subject matter hereof and supersedes all prior agreements or undertakings. D. In the event any one or more of the provisions contained in this MBI are held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability will not affect any other provisions hereof, and this MBI shall be construed as if such invalid, illegal or unenforceable provision had not been contained herein. E. This MBI shall be governed by and construed in accordance with the laws ofNorth Carolina and the United States as appropriate. F. This MBI may be executed by the parties in any combination, in one or more counterparts, all of which together shall constitute but one and the same instrument. G. The terms and conditions of this MBI shall be binding upon and inure to the benefit of the parties hereto and their respective successors. H. All notices and required reports shall be sent by regular mail to each of the parties at their respective addresses, provided below. Sponsor: Kevin Tweedy, PE Ecosystem Planning & Restoration, PLLC 559 Jones Franklin Road, Suite 150 Raleigh, NC 27606 Corps: Mr. Steve Kichefski U.S. Army Corps of Engineers Regulatory Division Wilmington District 151 Patton Avenue, Room 208 Asheville, NC 28801 USEPA: Mr. Todd Bowers Wetlands Section - Region IV Water Management Division U.S. Environmental Protection Agency 61 Forsyth Street, SW Atlanta, Georgia 30303 USFWS: Mr. Byron Hamstead U.S. Fish and Wildlife Service 160 Zillicoa Street Asheville, NC 28801 NCWRC: Ms. Andrea Leslie North Carolina Wildlife Resources Commission 20830 Great Smokey Mountain Expressway Waynesville, NC 28786 NCDWR: Mr. Mac Haupt Division of Water Resources North Carolina Department of Environmental Quality Post Office Box 29535 Raleigh, NC 27626-0535 NCSHPO State Historic Preservation Office Ms. Renee Gledhill -Earley 4617 Mail Service Center 109 E. Jones Street Raleigh, NC 27699-4617 9 IN WITNESS WHEREOF, the parties hereto have executed this Agreement entitled "Agreement To Establish The Red Barn Mitigation Bank in the Yadkin River Basin (HUC 03040101), Surry County, North Carolina": BANK SPONSOR Ecosystem Planning and Restoration, PLLC By: Date: INTERAGENCY REVIEW TEAM U.S. Army Corps of Engineers: By: Date: U.S. Environmental Protection Agency: By: Date: U.S. Fish and Wildlife Service: By: Date: N.C. Division of Water Resources: By: Date: N.C. Wildlife Resources Commission: By: Date: NC State Historic Preservation Office: By: Date: List of Appendices Appendix A: Geographic Service Area Map Appendix B: Final Mitigation Plan — Red Barn Mitigation Bank Site (This plan includes construction costs, maintenance and monitoring costs, draft copy of financial assurance documents, draft copy of site protection instrument, and a long term management plan as appendices to the plan.) 11 �. 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"a Mul6arry Elkin JarYesville Boonville \ Rural Hall _ ; l Millets Creek r 4 Cricket Wilkesboro Oak •� - YadkirrviIle Kernerrvi11e - +1.-_ - Vyin ston -S alern ^" fr-r- 1 Clamtnon: 1901 L� High .- - Lenoir Taylafaville I r' Macksvitle 7hanasrfile� Lexington Legend S esrllle - Proposed Service Area (HUC 03040101)y� PREPARED FOR: 0 5 10 RED BARN MITIGATION BANK SITE USACE Miles PROPOSED SERVICE AREA MAP WILMINGTON DISTRICT PREPARED BY: MBI APPENDIX A SURRY COUNTY, NC yyy'�ry ECOSYSTEM PLANNING & RCST01ZA'nON IN WITNESS WHEREOF, the parties hereto have executed this Agreement entitled "Agreement To Establish The Red Barn Mitigation Bank in the Yadkin River Basin (HUC 03040101), Surry County, North Carolina": BANK SPONSOR Ecosystem Planning and Restoration, PLLC INTERAGENCY REVIEW TEAM U.S. Arm Cor nof^EnnIgine By: U.S. Environmental Protection Agency: U.S. Fish and Wildlife Service: N.C. Division of Water Resources: N.C. Wildlife Resources Commission: NC State Historic Preservation Office: Date: Date: �O /�F_C ZoLq Date: Date: Date: Date: Date: 10 IN WITNESS WHEREOF, the parties hereto have executed this Agreement entitled "Agreement To Establish The Red Barn Mitigation Bank in the Yadkin River Basin (HUC 03040101), Surry County, North Carolina": BANK SPONSOR Ecosystem Planning and Restoration, PLLC By: INTERAGENCY REVIEW TEAM U.S. Army Corps of Engineers: By: U.S. Environmental Protection Agency: Date: 5 Date: By 'I f �i rak- Date: U.S. Fish and Wildli a Service: By: N.C. Division of Water Resources: By: N.C. Wildlife Resources Commission: By: NC State Historic Preservation Office: By: ID Date: Date: Date: Date: DEPARTMENT OF THE ARMY WILMINGTON DISTRICT, CORPS OF ENGINEERS 151 PATTON AVENUE ROOM 208 ASHEVILLE, NORTH CAROLINA 28801-5006 January 28, 2020 Regulatory Division Action ID No. SAW-2017-01927 Re: NCIRT Review and USACE Approval of the Red Barn Mitigation Banking Instrument (MBI) and Red Barn Final Mitigation Plan Mr. Kevin Tweedy, PE Ecosystem Planning and Restoration, PLLC 559 Jones Franklin Road, Suite 150 Raleigh, North Carolina 27606 Dear Mr. Tweedy: This letter is to inform you that the Wilmington District, Corps of Engineers (Corps) has reviewed and approved the Red Barn Mitigation Banking Instrument (MBI) and Red Barn (SAW- 2017-01927) Mitigation Plan dated November 2019. The Corps has already issued a Nationwide Permit 27 (NWP 27) verification letter authorizing work in waters of the United States associated with the restoration and enhancement of aquatic resources for this mitigation bank site. As bank sponsor you are required to comply with the approved Red Barn MBI and Final Mitigation Plan, the terms and conditions of your NWP 27 verification letter, and the Corps' regulations regarding compensatory mitigation (33 CFR 332). The bank sponsor accepts all risk, liability, and responsibility for the success of all mitigation activities associated with the approved mitigation bank site. In accordance with the Final Mitigation Plan, the bank sponsor must prepare and submit annual monitoring reports to document whether the restoration and enhancement areas for the project site meet the necessary interim and final performance standards. When credits are debited from the mitigation site, the bank sponsor must provide the Corps with an updated ledger form identifying the purchaser of the credits, the project name, the permit number, and the number and type of credits to be debited. When all stream credits have been consumed, no more credits may be sold from this mitigation site. From the Corps' perspective, the next phase in the establishment of the Red Barn MBI and mitigation site, include recording the conservation easement to protect the mitigation site, marking the boundary of the site with permanent signs, and executing the necessary financial assurances. Once the conservation easements have been recorded and we receive the required executed financial assurance documents, the Corps will be in a position to approve an initial credit release for 15% of the total mitigation credits. We look forward to working with you to ensure the mitigation site comply with the requirements of the approved MBI and site -specific mitigation plan. If you have any questions regarding this letter, the mitigation plan review process, or the requirements of the Mitigation Rule, please contact Mr. Steve Kichefski by email at steven.l.kichefskigusace.army.mil or by phone at (828) 271-7980 extension 4234. Sincerely, KICHEFSKI.STEVEN Digitally signed by KICH EFSKI.STEVEN.L.1386908539 1.1386908539 Date: 2020.01.28 11:42:18 -05'00' Steve Kichefski Project Manager, Asheville Regulatory Field Office Electronic Copies Furnished: Mac Haupt (NCDWR) Erin Davis (NCDWR) Andrea Leslie (NCWRC) Byron Hamstead (USFWS) Todd Bowers (USEPA) Renee Gledhill -Earley (NCSHPO) Todd Tugwell (USACE) Kim Browning (USACE) Scott Jones (USACE)