20091236 Ver 4_Mitigation Bank Prospectus_20170515

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Andrea Hughes, Kim Browning, Kathy Matthews
MAY 1 5 2017
Todd Tugwell Emily Wells Gabriella GarrisonDENR • WATER RESOURCES
U.S. Army Corps of Engineers U.S. Fish & Wildlife Services NC Wildlife Res0UT9A%WMRM%Vb%lPERMITTING UNIT
3331 Heritage Trade Drive, Ste 105 PO Box 33726 PO Box 28347
Wake Forest, NC 27587 Raleigh, NC 27636-3726 Hoffman, NC 28347
Emily Greer Todd Bowers C
U.S. Army Corps of Engineers USEPA, Region 4 RC !�!VED
69 Darlington Avenue 61 Forsyth Street, SW
Wilmington, NC 28403 Atlanta, GA 30303 A,
Mac Haupt
Riley�WVirginia Baker Ken Rile Sr ft LANATERPO QUAL17y
NCDEQ, Division of Water Resources National Marine Fisheries Service ERMITTING
512 N. Salisbury Street, 9' Floor 101 Pivers Island Road
Raleigh, NC 27604 Beaufort, NC 28516 r
Re: RES Cape Fear 04 Umbrella Mitigation Bank, Blackstar Site — Prospectus RE�E��E.O
�,���APR 28 11
Dear Sir/Madam, ytj"AI DQUALIr/y
On behalf of Resource Environmental Solutions & Environmental Banc & Exchange, LLC, I am pleased to p b�mit �theQ
Prospectus for the Blackstar Mitigation Site ("Site").
Location
The 19.92-acre proposed mitigation site is located approximately five miles west of Dunn in Harnett County, North
Carolina (35.2786°N,-78.70021W). The Site is located in the 14digit HUC 03030004110020 and will restore and protect
a catchment which eventually discharges directly to the Cape Fear River.
Existing Site Conditions
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 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 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 (PF0IQ and Palustrine scrub -shrub (PSS1C) 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 exhibits 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 irhpacts. The sparse canopy
consists of red maple (Acer rubrum), blackgum (Nyssa sylvatica), sweetgum (Liquidambar styraciva), cottonwood
412 N. 4th St. #300 701 E. Bay St. #306 5020 Montrose Blvd. #650 1200 Camellia Blvd. #220
Baton Rouge, LA 70802 Charleston, SC 27904 Houston, TX 77006 Lafayette, LA 70508
1371h East Main St. A210 10055 Red Rw'BIW.#130 33 Tem final Way #431 302 Jefferson St. #110 1521 W. Main 2- Floor
Oak Hill, WV 25901 Owings Mills, MD 21117 Pittsburgh, PA 15219 Raleigh, NC 27605 Richmond, VA 232.20

RES Cape Fear 04 Umbrella Mitigation Bank
Blackstar Site
Prospectus
Cape Fear River Basin
HUC 03030004
Prepared by: Resource Environmental Solutions, LLC
Bank Sponsor: Environmental Banc & Exchange, LLC
302 Jefferson Street, Suite 110
Raleigh, NC 27605
919-209-1052
fires
April 2017

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.i .....................................................................................................5
�..
3.3 Endangered/Threatened Species................................................................................................... 5
3.4 Vegetation and Wildlife................................................................................................................ 6
3.5 Cultural Resources ....................................................................................................................... 7
I
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 of Released 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
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List of Figures
Figure 1. 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
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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 identified as having potential to help meet the compensatory mitigation
requirement for riparian wetland impacts in hydrologic unit code (HUC) 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 exhibits
diminished habitat value as a result of past and on -going agricultural activities. The Site will involve the
re-establishment and enhancement of 19.92 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
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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, or 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.
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Table 1. Site Ownership
Deed Book
Parcel
Protected
Landowner
Pin
County
and Page
Acreage
Acreage
Number
Wellons Properties
0585-94-8560
Harnett
707/534
208.49
19.92
Inc.
2 QUALIFICATIONS
2.1 Bank Sponsor
The Site shall be establish under the terms and conditions of the RES Cape Fear 04 Umbrella Mitigation
Bank made and entered i o by Environmental Banc & Exchange, LLC (EBX), acting as the Bank Sponsor.
Company Name`. Environmental Banc & Exchange, LLC
Company Address 302 Jefferson Street, Suite 110, Raleigh, NC 27605
Contact Name: Cara Conder
Telephone: [phone]
Email: [e-mail]
2.2 Bank Sponsor Qualifications
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, RES 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 permitted/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 office in Raleigh staffed with full-time professionals, RES
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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 April 2001. Initial contract: 22,964 linear 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 Fall 2009). Additional sites added starting in
2008.
Chesapeake Wetland Mitigation Bank (City of Chesapeake, Virginia): 545-acre wetland mitigation
bank in the Lower James Watershed in Virginia. The service territory of the Bank includes HUCs
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 (Halifax 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 Fall 2011).
3 EXISTING CONDITIONS
3.1 Existing Jurisdictional Waters of the U.S.
The US Fish and Wildlife Service National Wetland Inventory (NWI) Map depicts wetlands within the
project site (Figure 4). The ditch that drains directly to the Cape Fear River is mapped as PFOIC (Palustrine
Forested Broad -Leaved Deciduous Seasonally Flooded) and PSS 1C (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
JEL
NC WAM Rating
Area 1
Low
Area
Low
Area 3
Low.
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3.2 Soil Survey
3.2.1 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 exhibit 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 fine 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
Drainage
Seasonal High
Farmland
Taxonomic
Series
Class
Water Table
classification
Class
Hydric
Roanoke loam
poorly
0 to 12
Statewide importance
Typic
Endoaquults
Yes
Wahee
somewhat
6 to 18
Statewide importance
Aeric
Yes 7%
fine sandy loam
poorly
Endoaquults
Altavista fine sandy
moderately
18 to 30
Prime farmland
Aquic
No
loam
well
Hapludults
State
well
48 to 72
Prime farmland
ic
No
fine sandy loam
H pludults
Wickham fine
well
>80
Prime farmland
Typic
Yes
sandy loam
Hapludults
10%
3.3 Endangered/Threatened Species
Plants and animals with a federal classification 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
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rough -leaved loosestrife (Lysimachia asperulaejolia) (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
Status
Babitat
Present
Record
I Status
Vertebrate:
Bald eagle
Haliaeetus leucoce ha/us
BGPA
No
Current
Red -cockaded woodpecker
Picoides borealis
E
No
Current
Cape Fear shiner
I Notro is mekistocholas
E
No
Current
Vascular Plante
Rough -leaved loosestrife L simachia as erulae olio 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 (PFOIC) and Palustrine scrub -shrub (PSSIC) 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 (Juncos
e, jjusus) with no trees present. Other grasses and weeds are limited. The hydrology at the southern end of
the western ditch exhibits 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
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(Liquidambarstyraciflua), 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
April 20, 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 confirm these findings.
3.6 Constraints
There are no major 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.
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3.7 Site Photographs
Looking upstream ditch #1.
04/18/2017
Southern end of ditch #1.
04/18/2017
Existing conditions middle of ditch #1
Existing conditions northern area of ditch #1.
04/18/2017
04/18/2017
�r
Northern part of ditch #1.
Existing conditions on ditch #2.
04/18/2017
04/18/2017
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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 runoff. 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.
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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.
4.1.3.3 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.
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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
definedsuccess: criteria, :EBX.- will developnecessary. 11adaptive management plans and/or implement
appropriate remedial actions for the.site incoordination with'the IRT; Remedial actions will. be designed to
achieve the success criteria specified previously, arid'will-inelude.identifcation, 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.p ercent, or . greater' of. the.canopy. in . a wetland rem
establishment area, then a:remedial/supplementalplantingplan will be-developed'and implemented for the
affected area(s)..: ... .
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),4he U,S. Environmental Protection Agency
(EPA), the U.S. Fish and Wildlife Service (USFWS), the.National Marine Fisheries Services (NMFS); the
North Carolina De'
artrrient; 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.perce'nt) will be based on the credit total in the Final
Mitigation Plari.: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. Incases. 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; .iri
consultation with the.IR-T;.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 project credits will be subj ectto the
criteria described in Table 6.
Blackstar Mitigation Site PROPSECTUS
RES Cape Fear.04 Umbrella Bank 11 . April 2017

Table 6. Wetland Credit Release Schedule
Monitoring
Credit Release Activity
Interim
Total
Year
Release
Released
I
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
] 0%
70%
performance standards are being met.
7
Fifth year monitoring report demonstrates
10%
80%
performance standards are being met.
8*
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 April 2017

will, submit:arequest 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 inahe form.of a Perforniance.Bond to the IRT sufficient to
assure completion. of all mitigation work;. -required reporting and. monitoring; and any remedial work
required: Financial assurances shall hepayable 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 ate not.acceptable.�A.financial.assu'rance must be iiilhei forni that ensures that the USAGE receives
notification: at.'least -120 days in advance of any termination or revocation:: -
5A .Proposed Ownership and:Longjerm Management. :.
EBX; LLC,; acting .as. the Bank Sponsor, will establish a Conservation. Easement, and will moriitor the Site
for a minimum of seven years: The: Mitigation Plan :wiil'provide detailed .information regarding bank
operation; including long term management and annual monitoring activities, for review.and approval by
the 1RT. Upon approval of the Sites b the IRT; the site will be transferred to along=term land steward (to
be. determined. in the Mitigation Plan): The long-term steward' shall, be responsible for periodic inspection
ofthe 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.yearlymonitoring 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 1RT 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 April 2017

Figures

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FIGURE 2 oam. do Brzon
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Ah

Landowner Authorization Form
Site: Blackstar
Property Legal Description
Deed Book: 707 Page: 534 County: Harnett
Parcel ID Number: 120585 0030
Street Address: 2421 BEAVER DAM RD, ERWIN, NC, 28339
Property Owner (please print): Wellons Properties, Inc.
Authorized Invitee (please print): Judson Smith
The undersigned, authorized invitee (pursuant to the Agreement Regarding Proposed Mitigation Project) of the
above property, does hereby authorize
Resource Environmental Solutions, the NC Division of Water Resources, and the US Army Corps of Engineers,
their 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 DUNN, NC 28334-0000
(if different from above)
1/We hereby certify the above information to be true and accurate to the best of my/our knowledge.
-1 i/-LAP /7
(Authorized Invitee Signature) Date

NC WAM Wetland Rating Sheet
Accompanies'User Manual Version.5.0
Wetland Site Name'. Blackstar- Area 1
Date
04/1.8/2017.
Wetland type' • ' Riverine' Swamp.Forest..
Assessor Name/Organization
RES
Notes on Field Assessment Form (Y/N)
NO .
Presence of regulatory considerations (Y/N).
NO
Wetland is intensively managed (Y/N)
YES
Assessment area is located within 50 feet of a natural tributary or other.open water '(Y/N) .
NO
Assessment area is substantially altered by beaver (Y/N) .
NO.
Assessment area experiences overbank flooding during normal rainfall
conditions, (Y/N)
NO
Assessment area is on a coastal island .(Y/N)
NO
Sub -function Ratirig-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
Condition/Opportunity.
LOW.,
Opportunity Presence? (Y/N)
NO
Soluble Change
Condition ..
LOW
Condition/Opportunity
LOW
Opportunity Presence? (Y/N)
NO
Physical Change
Condition
LOW
Condition/Opportunity
LOW ..
Opportunity Presence? (Y/N)
NO
Pollution Change
Condition
NA
Condition/Opportunity .
NA
Opportunity Presence?.(Y/N)-
NA
Habitat. Physical Structure.
-Condition
LAW:
= 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
Date
04/18/2017
..Wetland Type Riverine Swamp.Forest
Assessor Name/Organization
RES
Notes on Field Assessment Form (Y/N)
NO,
Presence of regulatory considerations (Y/N)
NO
Wetland is intensively managed (Y/N)
YES
Assessment area is located within 50 feet of a natural tributary or.other:open water (Y/N)
YES:
Assessment area is substantially altered by beaver.(Y/N)
NO.
Assessment area experiences oveibank flooding:during normal rainfall conditions. (Y/N).
YES
Assessment area is on a coastal" island..(Y/N)
' 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
Condition/Opportunity
LOW
Opportunity Presence? (Y/N)
NO
Soluble Change
Condition
LOW
Condition/Opportunity
LOW.
Opportunity Presence? (Y/N)
NO.
Physical Change
Condition
LOW
Condition/Opportunity
LOW ..
Opportunity Presence? .(Y/N)
NO' .
Pollution Change
Condition
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 UserManual Version .5.0 .
1Netland Site Name.. Blackstar- Area 3 . - ' •
Date
04/18/2017
Wetland Type,. Riverine Swamp.Forest" . :• '..
Assessor Name/Organization
-RES...
Notes`on Field Assessment For (Y/N)
NO .. "
Presence:of regulatory considerations (Y/N)- . ..
NO
"
Wetland is intensively managed (Y/N).
:. -
.• . .'YES'
Assessment• area is located within 50 feet of a "natural tributary or other::open water (Y/N)
NO
Assessment area is substantially altered by beaver.(Y/N) .
NO.
Assessment area experiences overbank flooding during normal rainfallconditions (Y/N).
NO
Assessment area is on a coastal "island.-(Y/N)-
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 .
Co ndition/Opportunity
.LOW. .
.:.Opportunity
Presence? (Y/ N)
NO- '
Soluble Change .:
Condition.
;. LOW
Condition/Opportunity..
LOW:
..
"Opportunity Presence? (Y/N)
.. NO.
Physical Change
Condition ":
LOW "
Condition/Opportunity
LOW .. .
.
Op portunity Presence? (Y/N)
NO .. :
Pollution Change.
'Condition
NA ..
'Condition/Opportunity .
NA
_.
O pportunitq Presence?•(Y/N): -
:NA
Habitat.'. Physical Structure '
:Condition
LOW:
andscape Patch Structure."
Condition '
LOW
Vegetation Composition
Condition
LOW
Function. Rating Summary
Function.: Metrics/Notes
Raying' .
:.
Condition Hydrology"
LOW ..
Water Quality. Condition •
LOW .
Condition/opportunity ;' ..
LOW.' .
Opportunity Presence? (Y/N)
NO .
Habitat.. Condition
LOW..
Overall Wetland Rating LOW