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Mitigation Project Submittal - 3/31/2020
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Banished Bull Buffer Mitigation and Nutrient
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/ '&'e-W"t' �''?'r,V
Bank Parcel Development Plan
Banished Bull Riparian Buffer Mitigation and Nutrient Offset
Falls Lake Watershed
Neuse River Basin HUC 03020201
NC DWR Project ID # 2020-0047
March 31st, 2020
Prepared For:
NC Department of Environmental Quality Division of Mitigation Services
1652 Mail Service Center
Raleigh, NC 27699-1652
Bank Sponsor:
Watershed Investments, NC LLC
1630 Weatherford Circle
Raleigh, NC 27604
Phone: 919-533-9195
Banished Bull Mitigation Site
DWR Project # 2020-0047 Page i Bank Parcel Development Plan
Contents
1.0 Introduction ........................................................................................................................................... 1
2.0 Existing Conditions ................................................................................................................................ 1
2.1 Watershed Setting .............................................................................................................................. 1
2.2 Hydrologic Setting .............................................................................................................................. 2
2.3 Physiography and Soils....................................................................................................................... 2
2.4 Land Use/Cover ................................................................................................................................. 3
2.5. Landscape Communities .................................................................................................................. 3
3.0 Regulatory Considerations .................................................................................................................... 4
3.1 Threatened and Endangered Species ................................................................................................ 4
3.2 Cultural Resources ............................................................................................................................. 4
3.3 FEMA Floodway / Floodplain Impacts ............................................................................................... 4
4.0 Riparian Restoration Plan ..................................................................................................................... 4
4.1 Site Preparation ................................................................................................................................. 4
4.2 Planting Plan ...................................................................................................................................... 5
4.3 Easement Boundaries ........................................................................................................................ 5
5.0 Monitoring Pan ...................................................................................................................................... 6
5.1 Monitoring Protocol and Success Criteria ........................................................................................ 6
5.2. Adaptive Management Plan and Parcel Maintenance ................................................................... 6
6.0 Long Term Management Plan ............................................................................................................... 7
7.0 Financial Assurance ............................................................................................................................... 7
8.0 Mitigation Potential ............................................................................................................................... 8
9.0 References ............................................................................................................................................. 9
Banished Bull Mitigation Site
DWR Project # 2020-0047 Page ii Bank Parcel Development Plan
LIST OF SUPPORTING FIGURES
Figure 1. Watershed Setting and Service Area
Figure 2. Project Vicinity Map
Figure 3. Project Mapped Soils
Figure 4. Historic Site Conditions
Figure 5. Existing Conditions
Figure 6. Flood Hazard Areas
Figure 7. Mitigation Credit Areas
LIST OF APPENDICES
Apendix 1. Site Protection Instrument
Appendix 2. NC Division of Water Resource Stream Identification Form
Appendix 3. Site Photos of Existing Conditions
Appendix 4. NC Natural Heritage Program Project Review
Appendix 4. NC State Historic Preservation Office Project Review
Banished Bull Mitigation Site
DWR Project # 2020-0047 Page 1 Bank Parcel Development Plan
1.0 Introduction
The Banished Bull Mitigation Site (Site) is located in Orange County approximately six miles northeast of
Hillsborough, NC (Figure 1-Site Setting). One unnamed mainstem traverses the site and is fed by one
unnamed ephemeral tributary. The project will restore riparian forest of these features totaling an
approximate area of 8.30 acres and the area will be protected by a conservation easement. The Site
Protection Instrument detailing the easement is located in Appendix 1. Table 1 provides a summary of
the site’s location and area.
1.0
Table 1: Project Attribute Table Part 1 – Banished Bull Mitigation Site
Project Information
Project Name Banished Bull Mitigation Site
County Orange
Project Coordinates (latitude and longitude) 36.1500 N, 79.0461 W
Planted Acreage (acres of woody stems planted) 8.29
2.0 Existing Conditions
2.0
2.1 Watershed Setting
Table 2. provides watershed details for the Site. The project is located within the NC Division of
Mitigation Services (DMS) Targeted Local Watershed (TLW) for the Neuse River Basin 14-digit Hydrologic
Unit (HU) 03020201020020 and NC Division of Water Resources (DWR) Subbasin 03-04-01.
Figure 1 provides an overview of the Service Area for the Site. The Site is located in the Upper Falls Lake
Watershed. Falls Lake, a Water Supply-IV classification, has been designated a nutrient Sensitive Water
by the Division of Water Resources and is the subject of Nutrient Management Strategy passed by the
Environmental Management Commission in 2011. The 2009 DWR Neuse River Basinwide Water Quality
Plan lists major stressors in Subbasin 03-04-01 to be total suspended solids (TSS), nutrients, and
chlorophyll α (NC DEQ 2009).
Table 2. Banished Bull Watershed Setting
8-Digit HUC 03020201
Falls Lake Sub-basin Upper Falls Lake
DWR Sub-basin 03-04-01
NC DMS 14-digit TLW HUC 03020201020020
12 Digit HUC / Name 030202010202 / South Fork Little River
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DWR Project # 2020-0047 Page 2 Bank Parcel Development Plan
2.2 Hydrologic Setting
Table 3 and Figure 2 provide details hydrologic features on and adjacent to the Site. NC DWR visited the
site on January 29, 2020 and completed an on-site field determination of hydrologic features (See
Appendix 2). They rated the mainstem channel (mainstem) that flows northeast across the site to the
South Fork of the Little River as perennial. NC DWR also rated as ephemeral an unnamed tributary that
flows north to the mainstem. Both features at the Site are within in the planned conservation easement.
Restoration activities on streams at the Site will directly and indirectly address stressors identified in the
Basinwide Water Quality Plan by reducing nutrient input to streams, fencing cattle from streams,
reducing hoof sheer of stream banks, and restoring a forested buffer. These activities will slow surface
runoff and provide shade to streams which, when combined, should reduce sediment and nutrient loads
that contribute to the production of chlorophyll α in downstream waters. In addition, project activities
will provide and improve instream and terrestrial (riparian) habitats while improving stream stability and
overall hydrology.
Table 3. Stream Information
Mainstem Stream Name Unnamed tributary to South Fork Little River
South Fork Little River Stream
Index @ Junction with the
site’s Mainstem
27-2-21-2
Stream Index Use Classification WS-II; HQW, NSW
2.3 Physiography and Soils
The Site is located in a portion of the Piedmont known as the Carolina Slate Belt (NCGS, 1985). The rocks
in this region are primarily volcanic and sedimentary rocks with a slaty cleavage. Coarse-grained
intrusive granites comprise the rest of the Slate Belt rocks (Rogers, 2006). The geology of this area has
important effects on Site hydrology, hydraulics, geomorphology, and sediment transport. Streams in the
Carolina Slate Belt tend to go dry during late summer and early fall as a result of geologic, topographic,
and climatic factors (Giese and Mason (1993). Several rocky outcrops along the mainstem of the channel
provide grade control to the channel preventing channel incision.
Table 4 lists soils present on the site according to the USDA Web Soils Survey for Orange County.
Figure 3 provides the mapped sols of the site. Silty loam soils are found throughout the site
predominantly with Herndon (HrB) followed by Georgeville (GeC) and Orange (Or). Soils on the
site are either well drained or mostly well drained due to soil characteristics and and slopes.
Banished Bull Mitigation Site
DWR Project # 2020-0047 Page 3 Bank Parcel Development Plan
Table 4. Mapped types and descriptions (Source: USDA 2020)
Mapped Soil Series Project
Area (%)
Hydric
Soil
Hydrologic
Soil Group
Soil Description
HrB - Herndon silt loam,
2 to 6 percent slopes 67 No B
Well drained silt and silty clay loam
soils whose parent material is
weathered phyllite.
GeC - Georgeville silt
loam 6 to 10 percent
slopes 22 No B
Well drained silt and silty clay loam.
Deep soils whose parent material is
weathered argillite, phyllite and/or
sericite schist.
Or – Orange silt loam, 0
to 3 percent slopes 11 No
D
Moderately well drained silt and silty
clay loam whose parent material is
weathered monzonite and/or igneous
and metamorphic rock.
2.4 Land Use/Cover
Land use and land cover were reviewed both on site and through review of aerial photography
dating back to 1975 (See Figure 4 – Historic imagery). Between 1975 and 1993, land uses
included hay production, pasture for cattle, and commercial chicken production using a confined
animal feeding operation. Confined animal operation structures were removed between 1993
and 1998 and the site has alternated between hay production and pasture for cattle since.
Upstream land use is a mix of forest and cattle pasture and has remained consistent since 1975.
The adjacent parcel to the west of the Site is currently owned by the County as future parkland.
Appendix 3 provides current photos of the site.
2.5. Landscape Communities
Figure 5 provides the most current aerial photography for the site. Currently, both the mainstem
and UT to mainstem lack a functioning riparian buffer. Land use within 200 feet of the stream
has functioned as cattle pasture going back to before 1975. Fescue and a mix of other
herbaceous vegetation are predominant within current buffer.
A small number of mature trees are present at the lower end of the mainstem. Tree species
include red maple (Acer rubrum), sweetgum (Liquidambar styraciflua), and Eastern Red Cedar
(Juniperus virginiana).
In spite of the long-term pasture usage and lack of adequate buffer, stream banks along the
mainstem its ephemeral UT remain stable with bedrock outcrops helping provide grade control.
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3.0 Regulatory Considerations
3.1 Threatened and Endangered Species
Plants and animals with a federal classification of endangered (E) or threatened (T) 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 for Orange County, NC (accessed 2/7/2020) lists the
following three endangered species in Orange County (USFWS 2020):
• Dwarf wedgemussel (Alasmidonta heterodon) - Endangered
• Michaux's sumac (Rhus michauxii) - Endangered
• Smooth coneflower (Echinacea laevigata) - Endangered
In addition to the USFWS database, the NC Natural Heritage Program (NHP) was contacted to
determine whether previously cataloged occurrences of protected species were mapped both on
the site and within one mile. A copy of the correspondence with the NHP is included in Appendix
4.
According to the NHP, no Element Occurrences are documented on the site. Within one mile, of
the project, the following threatened or Endangered species were noted (NCNHP 2/11/20).
• Atlantic Pigtoe - Mollusk (Fusconaia masoni) - Endangered
• Creeper - Mollusk (Strophitus undulates)- Threatened
• Notched Rainbow - Mollusk (Villosa constricta) - Threatened
Based on site investigations, no impacts to federally protected species are anticipated or state
endangered or threatened species are anticipated as a result of the proposed project.
3.2 Cultural Resources
Cultural resources include historic and archeological resources located in or near the project parcel. The
State Historic Preservation Office (SHPO) has been notified of the proposed project and confirmed that
their database contains no record of important cultural resources in the easement area. A copy of their
review and response letter is provided in Appendix 5.
3.3 FEMA Floodway / Floodplain Impacts
Banished Bull mainstem and UT1 are not FEMA mapped streams within the Site, as illustrated on
the Orange County Flood Insurance Rate Map Panel 9887 and in Figure 6.
4.0 Riparian Restoration Plan
4.1 Site Preparation
Preparation within the Site will involve spraying undesired fescue grass and exotic invasive
species. Stabilization and implementation of surface flow dispersal techniques will also be
utilized where flows have become concentrated to minimize the chances of non-diffuse flow.
Bare root plantings shall be planted according to the planting plan. Once planting is complete,
Banished Bull Mitigation Site
DWR Project # 2020-0047 Page 5 Bank Parcel Development Plan
the riparian restoration areas will be surveyed and completed planting information will be
provided in the As-Built report.
4.2 Planting Plan
The revegetation plan for the buffer restoration area will include planting bare root trees,
temporary and permanent seeding, and controlling invasive species growth. The specific species
composition to be planted is selected based on the community type, observation of occurrence
of species in riparian buffers adjacent to the Parcel, and best professional judgement on species
establishment and anticipated site conditions in the early years following project
implementation. Species chosen and number of planned for the planting are listed in Table 5.
Species availability may result in the substitution of regionally appropriate native species.
Table 5. Selected Tree Species (Note: Species availability may result in the substitution of
regionally appropriate native species.)
Species Common
Name
Spacing Stems
(#)
Stems
(%)
Liriodendron
tulipifera
Tulip Poplar 6-12ft 1000 20%
Platanus
occidentalis
Sycamore 6-12ft 1000 20%
Betula nigra River Birch 6-12ft 1000 20%
Fraxinus
pennsylvanica
Green Ash 6-12ft 1000 20%
Quercus michauxii Swamp
Chestnut Oak
6-12ft 1000 20%
The protected buffer easement will be planted up to 200 feet back from the top of the stream
bank, with appropriate native species observed in the surrounding forest and species known to
occur in similar environmental settings. Fencing will be installed to prevent access from livestock
which use the adjacent pasture land. A seed mix will also be applied to provide temporary and
permanent ground cover for soil stabilization and reduction of sediment loss during rain events
in areas without existing herbaceous cover.
Revegetation of the Site will include planting bare root trees and controlling invasive species
growth. Trees will be planted at a density sufficient to meet the performance standards outlined
in the Rule 15A NCAC 02B 0295 of 260 trees per acre at the end of five years. No one tree species
will be greater than 50% of the established stems. Planting is planned between December 2020
and March 2021.
4.3 Easement Boundaries
Banished Bull Mitigation Site
DWR Project # 2020-0047 Page 6 Bank Parcel Development Plan
Easement boundaries will be identified in the field along with access easements that may be necessary
to provide permanent access to the conservation easement areas. Easement boundaries will be
identified in the field to ensure clear distinction between the Site and adjacent properties. Boundaries
may be identified by marker, bollard, post, tree- blazing, or other means as allowed by site conditions
and/ or conservation easement. Boundary markers disturbed, damaged, or destroyed will be repaired
and/ or replaced on an as needed basis. The easement boundaries will be checked annually as part of
monitoring activities with the status of the boundaries reported in annual monitoring reports.
5.0 Monitoring Pan
5.1 Monitoring Protocol and Success Criteria
Vegetation monitoring and visual assessments will be conducted annually. The first year of monitoring
will not be conducted until at least five months have passed since the planting and seeding of the
riparian buffer was completed. Riparian buffer vegetation monitoring will be based on the " Carolina
Vegetation Survey -Ecosystem Enhancement Program Protocol for Recording Vegetation: Level 1- 2 Plot
Sampling Only Version 4.2".
Eight vegetation plots will be installed a minimum of 100 meters squared in size and will cover at least
two percent of the planted buffer mitigation area (8.29 acres). These plots will be randomly placed
throughout the planted riparian buffer mitigation area and will be representative of the riparian buffer
restoration areas. The following data will be recorded for all trees in the plots: species, height, planting
date ( or volunteer), and grid location. All stems in plots will be flagged with flagging tape.
Photos will be taken at all vegetation plot origins each monitoring year and be provided in the annual
reports.
The measures of vegetative success for the Project will be the survival of at least four native hardwood
tree species, where no one species is greater than 50 percent of the established stems, established at a
density of at least 260 planted trees per acre at the end of Year 5. Native volunteer species may be
included to meet the performance standards as determined by NC Division of Water Resources DWR).
A visual assessment of the conservation easement will also be performed each year to confirm:
• No encroachment has occurred;
• No invasive species in areas where invasive species were treated,
• Diffuse flow is being maintained in the conservation easement areas; and
• There has not been any cutting, clearing, filling, grading, or similar activities that would
negatively affect the functioning of the buffer.
WINC must monitor Site for a minimum of five years, or until NC DWR approval.
5.2. Adaptive Management Plan and Parcel Maintenance
Adaptive measures WINC will be developed, or appropriate remedial actions taken if in the event
that the site, or a specific component of the site, fails to achieve the defined success criteria.
Remedial actions will be designed to achieve the success criteria specified in this BPDP, and will
Banished Bull Mitigation Site
DWR Project # 2020-0047 Page 7 Bank Parcel Development Plan
include identification of the causes of failure, remedial design approach, work schedule, and
monitoring criteria that will take into account physical and climatic conditions.
Initial plant maintenance may include a one- time mowing, prior to initial planting to remove
undesirable species. If mowing is deemed necessary by WINC during the monitoring period,
WINC must receive approval by the DWR prior to any mowing activities to ensure that no buffer
violations have been performed. Failure to receive approval to mow within the Neuse River
buffer, as defined in 15A NCAC 02B . 0233, by the DWR could result in Neuse buffer violations
and violations of the conservation easement. If necessary, WINC will develop a species - specific
control plan.
6.0 Long Term Management Plan
Watershed Investments NC, LLC (WINC), acting as the Bank Sponsor, will record a Conservation
Easement with the Orange County Register of Deeds Office for this site. The Conservation Easement will
be assigned to the XXXX. All monitoring activities, including periodic inspections of the site to ensure
that restrictions required in the Conservation Easement are upheld, are the responsibility of WINC-
Neuse I, LLC until the Bank Parcel is transferred to the XXXX. Endowment funds required to uphold the
Banished Bull Bank Parcel conservation easement in perpetuity shall be negotiated prior to site transfer
to the XXXXX. The Bank Sponsor will ensure that the Conservation Easement has allowed 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 yearly monitoring and, if
necessary, maintenance of the Parcel during the initial monitoring phase. These activities will be
conducted in accordance with the terms and conditions of the Banished Bull Riparian Buffer Mitigation
Banking Instrument made and entered into by WINC and DWR.
7.0 Financial Assurance
The Sponsor will provide financial assurances in the form of Performance Bonds sufficient to assure one
hundred percent (100 percent) completion of all mitigation work, required reporting and monitoring,
and any remedial work required. Financial assurances will be payable at the direction of the DWR to its
designee or to a standby trust. Financial assurances structured to provide funds to the DWR in the event
of default by the Bank Sponsor are not acceptable. The initial performance bond will be in the amount of
at least $150, 000 and shall be able to cover 100 percent of the costs associated with construction of the
riparian restoration areas. The monitoring bond shall be in the amount of at least $100,000 and shall be
able to cover 100 percent of the costs associated with the monitoring and maintenance of the riparian
restoration areas for five years.
Performance bonds for monitoring shall be renewed to cover the next years monitoring period, with
confirmation of renewal provided to DWR with each annual monitoring report when applicable. DWR
reserves the right to alter the credit release schedule if monitoring reports are submitted without proof
of bond renewals when applicable.
Banished Bull Mitigation Site
DWR Project # 2020-0047 Page 8 Bank Parcel Development Plan
8.0 Mitigation Potential
Table 6 details the potential to generate riparian buffer and nutrient credit from the site. The project has
the potential to generate approximately 206,601.698 ft2 (4.74 ac) of riparian buffer restoration credits.
Further, the site has a potential 3.55 acres that are planned for nitrogen and phosphorus offsets
Table 6. Potential Riparian Buffer and Nutrient Offset Credit Summary – Banished Bull.
Riparian
Zone Credit Type Mitigation
Type
Area
(ft2)
Area
(ac) Credit Ratio Mitigation
Credits
0-50 ft Riparian Buffer Restoration 105,016 2.41 1:1 105,015.510
51-100 Riparian Buffer Restoration 101,586 2.33 1:1 101,586.188
Total Riparian Buffer Restoration Credits 206,602 4.74 206,601.698
Riparian
Zone Credit Type Mitigation
Type
Area
(ft2)
Area
(ac)
Generated
Credits per
Acre (lbs)
Mitigation
Credits
(lbs)
101-200
Nitrogen Restoration 154,666 3.55 2273.02 8,070.66
Phosphorus Restoration 154,666 3.55 146.4 519.81
Table 7 details mitigation activities per drainage feature. In accordance with the Consolidated Buffer
Rule 15A NCAC 02B .0295 (o)(7) the area of the mitigation site on ephemeral channel (i.e., 10%) is less
than 25 percent of the total area of buffer mitigation.
Table 7. Mitigation Area by Drainage Feature- Banished Bull
Feature
Name
Riparian Buffer
Restoration (ft)
0-100'
Riparian Buffer
Restoration (ft)
101-200'
Feature Total
Area (ft)
Total Area
(Ac)
Total Area
(%)
Mainstem 182,889 141,615 324,504 7.45 90%
UT to
Mainstem 23,712 13,051 36,763 0.84 10%
Total Area 206,602 154,666 361,267 8.29 100%
% of Total 57% 43% 100%
The Sponsor will maintain the following three credit ledgers:
• Buffer restoration credit ledger;
• Nitrogen nutrient offset credits; and
• Phosphorus nutrient offset credit ledger
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DWR Project # 2020-0047 Page 9 Bank Parcel Development Plan
Also, the Sponsor must request and receive approval from NCDWR prior to any credit conversions and
transfers to the credit ledgers. With each conversion and transfer request submitted to the NCDWR, the
Sponsor will provide all updated credit ledgers showing all transactions that have occurred up to the
date of the request.
9.0 References
NC DEQ. 2009. Neuse River Basinwide Water Quality Plan. Accessed online
https://deq.nc.gov/about/divisions/water-resources/planning/basin-planning/water-resource-
plans/neuse-2009. Accessed 3/12/20.
NCS State Historic Preservation Office. 2020. North Carolina Listings in the
National Register of Historic Places. http://www.hpo.ncdcr.gov/NR-PDFs.pdf, accessed January
2020
NC North Carolina Natural Heritage Program. 2020. Natural Heritage Element Occurrences. February
2020.
Giese, G.I and Robert R. Mason Jr. 1993. Low-Flow Characteristics of Streams in North Carolina. U.S.
Geological Survey Water Supply Paper 2403.
North Carolina Geological Survey (NCGS), 1985. Geologic map of North Carolina 1:500,000 scale.
Compiled by Philip M. Brown at el. Raleigh, NC, NCGS.
Rogers, John J.W., 2006. The Carolina Slate Belt. In Steponaitis, V.P., Irwin, J.D., McReynolds, T.E., and
Moore, C.R. (Ed.), Stone Quarries and Sourcing in the Carolina Slate Belt (pp. 10 – 15). Retrieved from
http://rla.unc.edu/Publications/pdf/ResRep25/Ch2.pdf
U.S. Department of Agriculture. 2015. Web Soil Survey Report. Accessed online 2/15/20
http://websoilsurvey.sc.egov.usda.gov/App/HomePage.htm
U.S. Fish and Wildlife Service. 2012. Endangered and Threatened Species and Species of Concern by
County for North Carolina. Online at http://www.fws.gov/raleigh/species/cntylist/orange.html
(Accessed 2/10/20).
SUPPORTING FIGURES
Figure 1. Watershed Setting and Service Area
Figure 2. Project Vicinity Map
Figure 3. Project Mapped Soils
Figure 4. Historic Site Conditions
Figure 5. Existing Conditions
Figure 6. Flood Hazard Areas
Figure 7. Mitigation Credit Areas
Wake
Johnston
Harnett
Nash
Franklin
Wayne
Orange
Lee
Granville
Chatham
Durham
WarrenPersonVance
Wilson
SampsonCumberland
Caswell
Moore
Halifax
DuplinHoke
Falls Lake Service Area
Lower Falls Watershed
Upper Falls Watershed
County Boundary
Neuse HUC 03020201
Watershed Investments NC010205Miles
Project Location
^_
HUC 03020201
Upper Falls
Lower Falls
Figure 1. Bank Parcel Watershed Setting Falls Lake Service Area, Neuse River, andOrange County
Attachment 1. Banished Bull Project Area. Orange County, NC.
Ro ads
USG S 24k S treams
Ban k Parcel B oundary Watershed Investments NC00.35 0.70.175 Miles
Parcel Location
Figure 2. Site Streams and Topo Vicinity
NC DWR Stream Index 27-2-21-2 at South Fork Little River
Proposed Parcel Boundar y
Soil Unit Boundaries
Watershed Inv estments NC0800400Feet
Figure 3. Site Soil Conditions ²Aerial Photography Date: 2017
Or HrB
HrB
GeC
EnB
TaE
W
W
GeB
GeB
GeB
Orange County Soil Survey, 1975.NRCS Web Soil Survey, 2020.
Propo sed Parcel Bo undar y
Watershed Investments NC0800400Feet
Figure 4. Historic Aerial Photography ²
20101975
Stream Iden tification
Peren nial
Eph em eral
Con tours
Easem ent Boundar y
Watershed Investments NC0500250Feet
Figure 5. Existing Conditions ²Aerial Photography Date: 2017
Mainstem(P erenn ial)
UT toMainstem(Ephemeral)
Attachment 1. Banished Bull Project Area. Orange County, NC.
Watershed Investments NC02,000 4,0001,000 Feet
Parcel Location
Figure 6. Flood Hazard AreasZone AE: Floodway, 1% Annual Flood Hazard
Zones AE: 1% Annual Flood Hazard
0.2% Annual Flood Hazard
RoadsProposed Parcel Bo undar y
Stream Identification
Perennial
Ephemeral
Easement Boundar y
No Credit Area
Stream Channel Area
0-50ft
51-100ft
100-200ft
Watershed Inv estments NC0360180Feet
Figure 7. Proposed Buffer and Nutrient Offest Areas.²Aerial Photography Date: 2017
Ephemeral Credit Ar ea
PerennialCredit Ar ea
LIST OF APPENDICES
Appendix 1. Site Protection Instrument
Appendix 2. NC Division of Water Resource Stream Identification Form
Appendix 3. Site Photos of Existing Conditions
Appendix 4. NC Natural Heritage Program Project Review
Appendix 5. NC State Historic Program Project Review
APPENDIX 1
Site Protection Instrument
Recommended model for nutrient offset and buffer mitigation easements -Please remove all reference
to the Army Corps of Engineers (COE) & replace with "Division of Water Resources". The COE has
no involvement with nutrient offset and buffer mitigation banks unless the site easement also includes
a stream and/or wetland mitigation bank.
MODEL CONSERVATION EASEMENT
January 18, 2001
Rev'd October 16, 2002
Rev'dAugust, 2003
Model Conservation Easement for use in preserving mitigation property. Language in
italics is instructional, and should be deleted when site -specific Conservation Easement
is prepared.
PERMANENT CONSERVATION EASEMENT Grantee and Grantor must be
different parties - read UMBI for
any specific details
THIS CONSERVATION EASEMENT ("Conservation Easement') made this
day of , 200 by and between
("Grantor") and
(Grantee).
The designation Grantor and Grantee as used herein shall include said parties,
their heirs, successors and assigns, and shall include singular, plural, masculine, feminine
or neuter as required by context.
RECITALS
WHEREAS, Grantor owns in fee simple certain real property situated, lying and
being in County, North Carolina, more particularly
described in Exhibit A attached hereto and incorporated herein ("Property");
WHEREAS, Grantee is [either apublic body of this state, an agency of the United
States, or a nonprofit corporation or trust whose purpose is the conservation of property],
and is qualified to be the Grantee of a conservation easement pursuant to N.C. Gen. Stat.
§ 121-35;
WHEREAS, Grantor and Grantee recognize the conservation, scenic, natural, or
aesthetic value of the property in its natural state, which includes the following natural
communities: [describe by wetland and/or stream type, as well as any associated buffers
or upland communities]. The purpose of this Conservation Easement is to maintain
wetland and/or riparian resources and other natural values of the Property, and prevent
the use or development of the Property for any purpose or in any manner that would
conflict with the maintenance of the Property in its natural condition.
[For use when the mitigation is offered for impacts of a single individual or
general permit use] WHEREAS, the preservation of the Property is a condition of
Department of the Army permit Action ID issued by the Wilmington
District Corps of Engineers, required to mitigate for unavoidable stream and/or wetland
impacts authorized by that permit. Grantor and Grantee agree that third -party rights of
enforcement shall be held by the U.S. Army Corps of Engineers, Wilmington District
a paragraph similar to this one describing the easement is for a mitigation bank
(include the Site BPDP name & include that it was approved by DWR, also include
the UMBI/MBI Name, who signed it and when it was signed
(Corps, to include any successor agencies), and that these rights are in addition to, and do
not limit, the rights of enforcement under said permit.
[Alternate paragraph for use when the conservation easement supports a
mitigation bank] WHEREAS, the preservation of the Property is required by a Mitigation
Banking Instrument for the [Name of Bank], Department of the Army Action ID [Action
ID number for the mitigation bank]. The Mitigation Bank is intended to be used to
compensate for unavoidable stream and/or wetland impacts authorized by permits issued
by the Department of the Army. Grantor and Grantee agree that third -party rights of
enforcement shall be held by the U.S. Army Corps of Engineers, Wilmington District
(Corps, to include any successor agencies), and that these rights are in addition to, and do
not limit, the rights of the parties to the Mitigation Banking Instrument.
NOW, THEREFORE, for and in consideration of the covenants and
representations contained herein and for other good and valuable consideration, the
receipt and legal sufficiency of which is hereby acknowledged, Grantor hereby
unconditionally and irrevocably grants and conveys unto Grantee, its heirs, successors
and assigns, forever and in perpetuity a Conservation Easement of the nature and
character and to the extent hereinafter set forth, over the Property described on Exhibit A,
together with the right to preserve and protect the conservation values thereof, as follows:
ARTICLE I.
DURATION OF EASEMENT
This Conservation Easement shall be perpetual. This conservation Easement is an
easement in gross, runs with the land and is enforceable by Grantee against Grantor,
Grantor's personal representatives, heirs, successors and assigns, lessees, agents and
licensees.
ARTICLE II.
PROHIBITED AND RESTRICTED ACTIVITIES
Any activity on, or use of, the Property inconsistent with the purpose of this
Conservation Easement is prohibited. The Property shall be preserved in its natural
condition and restricted from any development that would impair or interfere with the
conservation values of the Property.
Without limiting the generality of the foregoing, the following activities and uses
are expressly prohibited, restricted or reserved as indicated hereunder:
A. Disturbance of Natural Features. Any change disturbance, alteration or
impairment of the natural features of the Property or any introduction of non-native
plants and/or animal species is prohibited.
B. Construction. There shall be no constructing or placing of any building,
mobile home, asphalt or concrete pavement, billboard or other advertising display,
antenna, utility pole, tower, conduit, line, pier, landing, dock or any other temporary or
permanent structure or facility on or above the Property.
C. Industrial, Commercial and Residential Use. Industrial, residential and/or
commercial activities, including any right of passage for such purposes are prohibited.
D. Agricultural, Grazing and Horticultural Use. Agricultural, grazing, animal
husbandry, and horticultural use of the Property are prohibited.
E. Vegetation. There shall be no removal, burning, destruction, harming, cutting
or mowing of trees, shrubs, or other vegetation on the Property.
F. Roads and Trails. There shall be no construction of roads, trails or walkways
on the property; nor enlargement or modification to existing roads, trails or walkways.
G. Signage. No signs shall be permitted on or over the Property, except the
posting of no trespassing signs, signs identifying the conservation values of the Property,
signs giving directions or proscribing rules and regulations for the use of the Property
and/or signs identifying the Grantor as owner of the property.
H. Dumping or Storage. Dumping or storage of soil, trash, ashes, garbage, waste,
abandoned vehicles, appliances, machinery or hazardous substances, or toxic or
hazardous waste, or any placement of underground or aboveground storage tanks or other
materials on the Property is prohibited.
L Excavation, Dredging or Mineral Use. There shall be no grading, filling,
excavation, dredging, mining or drilling; no removal of topsoil, sand, gravel, rock, peat,
minerals or other materials, and no change in the topography of the land in any manner
on the Property, except to restore natural topography or drainage patterns.
J. Water Quality and Drainage Pattern. There shall be no diking, draining,
dredging, channeling, filling, leveling, pumping, impounding or related activities, or
altering or tampering with water control structures or devices, or disruption or alteration
of the restored, enhanced, or created drainage patterns. In addition, diverting or causing
or permitting the diversion of surface or underground water into, within or out of the
easement area by any means, removal of wetlands, polluting or discharging into waters,
springs, seeps, or wetlands, or use of pesticide or biocides is prohibited.
K. Development Rights. No development rights that have been encumbered or
extinguished by this Conservation Easement shall be transferred pursuant to a
transferable development rights scheme or cluster development arrangement or
otherwise.
L. Vehicles. The operation of mechanized vehicles, including, but not limited to,
motorcycles, dirt bikes, all -terrain vehicles, cars and trucks is prohibited. [The Corps
You may add this statement to (L): is prohibited "above, on or over the Conservation
Easement Property other than for temporary or occasional access for purposes of
maintaining the easement area.
M. Other Prohibitions. Any other use of, or activity on, the Property which is or
may become inconsistent with the purposes of this grant, the preservation of the Property
substantially in its natural condition, or the protection of its environmental systems, is
prohibited.
ARTICLE III
GRANTOR'S RESEVERED RIGHTS
The Grantor expressly reserves for himself, his personal representatives, heirs,
successors or assigns, the right to continue the use of the property for all purposes not
inconsistent with this Conservation Easement, including, but not limited to, the right to
quiet enjoyment of the Property, the rights of ingress and egress, the right to hunt, fish,
and hike on the Property, the right to sell, transfer, gift or otherwise convey the Property,
in whole or in part, provided such sale, transfer or gift conveyance is subject to the terms
of, and shall specifically reference, this Conservation Easement.
[For use when mitigation work (approved or required restoration, creation, or
enhancement)is to be done on the propertyJNotwithstanding the foregoing Restrictions,
Grantor reserves for Grantor, its successors and assigns, the right to construct wetland
and stream mitigation on the Property, in accordance with the [describe mitigation plan
by title, date and permit action id if a single mitigation site; if a mitigation bank, include
the language "detailed mitigation plan approved in accordance with the Mitigation
Banking Instrument for the
ARTICLE IV.
GRANTEE'S RIGHTS
paragraph
milar to this
one revised to
fit a Nutrient
Offset and/or
Buffer
Bank.] lbank
The Grantee or its authorized representatives, successors and assigns, and the
Corps, shall have the right to enter the Property at all reasonable times for the purpose of
inspecting said property to determine if the Grantor, or his personal representatives, heirs,
successors, or assigns, is complying with the terms, conditions, restrictions, and purposes
of this Conservation Easement. The Grantee shall also have the right to enter and go
upon the Property for purposes of making scientific or educational observations and
studies, and taking samples. The easement rights granted herein do not include public
access rights.
ARTICLE V
ENFORCEMENT AND REMEDIES
A. To accomplish the purposes of this Easement, Grantee is allowed to prevent
any activity on or use of the Property that is inconsistent with the purposes of this
Easement and to require the restoration of such areas or features of the Property that may
be damaged by such activity or use. Upon any breach of the terms of this Conservation
Easement by Grantor that comes to the attention of the Grantee, the Grantee shall notify
the Grantor in writing of such breach. The Grantor shall have 30 days after receipt of
such notice to correct the conditions constituting such breach. If the breach remains
uncured after 30 days, the Grantee may enforce this Conservation Easement by
appropriate legal proceedings including damages, injunctive and other relief.
Notwithstanding the foregoing, the Grantee reserves the immediate right, without notice,
to obtain atemporary restraining order, injunctive or other appropriate relief if the breach
of the term of this Conservation Easement is or would irreversibly or otherwise
materially impair the benefits to be derived from this Conservation Easement. The
Grantor and Grantee acknowledge that under such circumstances damage to the Grantee
would be irreparable and remedies at law will be inadequate. The rights and remedies of
the Grantee provided hereunder shall be in addition to, and not in lieu of, all other rights
and remedies available to Grantee in connection with this Conservation Easement. The
costs of a breach, correction or restoration, including the Grantee's expenses, court costs,
and attorneys' fees, shall be paid by Grantor, provided Grantor is determined to be
responsible for the breach. The Corps shall have the same right to enforce the terms and
conditions of this easement as the Grantee.
B. No failure on the part of the Grantee to enforce any covenant or provision
hereof shall discharge or invalidate such covenant or any other covenant, condition, or
provision hereof or affect the right to Grantee to enforce the same in the event of a
subsequent breach or default.
C. Nothing contained in this Conservation Easement shall be construed to entitle
Grantee to bring any action against Grantor for any injury or change in the Property
resulting from causes beyond the Grantor's control, including, without limitation, fire,
flood, storm, war, acts of God or third parties, except Grantor's lessees or invitees; or
from any prudent action taken in good faith by Grantor under emergency conditions to
prevent, abate, or mitigate significant injury to life, damage to property or harm to the
Property resulting from such causes.
ARTICLE VI
MISCELLANEOUS
A. Warranty. Grantor warrants, covenants and represents that it owns the
Property in fee simple, and that Grantor either owns all interests in the Property which
may be impaired by the granting of this Conservation Easement or that there are no
outstanding mortgages, tax liens, encumbrances, or other interests in the Property which
have not been expressly subordinated to this Conservation Easement. Grantor further
warrants that Grantee shall have the use of and enjoy all the benefits derived from and
arising out of this Conservation Easement, and that Grantor will warrant and defend title
to the Property against the claims of all persons.
fHow for
,WR to have
ght to
ccess and
nfo rce
B. Subsequent Transfers. The Grantor agrees to incorporate the terms of this
Conservation Easement in any deed or other legal instrument that transfers any interest in
all or a portion of the Property. The Grantor agrees to provide written notice of such
transfer at least thirty (30) days prior to the date of the transfer. The Grantor and Grantee
agree that the terms of this Conservation Easement shall survive any merger of the fee
and easement interests in the Property or any portion thereof and shall not be amendec]f
modified or terminated without the prior written consent and approval of the Corps.
DWR, not the
Corps unless
their is also
C. Assignment. The parties recognize and agree that the benefits of this
Conservation Easement are in gross and assignable provided, however that the Grantee
hereby covenants and agrees, that in the event it transfers or assigns this Conservation
Easement, the organization receiving the interest will be a qualified holder under N.C.
Gen. Stat. § 121-34 et seq. and § 170(h) of the Internal Revenue Code, and the Grantee
further covenants and agrees that the terms of the transfer or assignment will be such that
the transferee or assignee will be required to continue in perpetuity the conservation
purposes described in this document.
I IIIJ ILCIII LI 1J
D. Entire Agreement and Severabilitv. This instrument sets forth the entire � not 100%
agreement of the parties with respect to the Conservation Easement and supersedes all accurate and
prior discussions, negotiations, understandings or agreements relating to the Conservat should be
Easement. If any provision is found to be void or unenforceable by a court of compete reworded. There
jurisdiction, the remainder shall continue in full force and effect. is also a
banking
E. Obligations of Ownership. Grantor is responsible for any real estate taxes, Instrument and
assessments, fees, or charges levied upon the Property. Grantor shall keep the Property a Bank Parcel
free of any liens or other encumbrances for obligations incurred by Grantor. Grantee sl Development
not be responsible for any costs or liability of any kind related to the ownership, Package that
operation, insurance, upkeep, or maintenance of the Property, except as expressly operate as
provided herein. Nothing herein shall relieve the Grantor of the obligation to comply "agreements".
federal, state or local laws, regulations and permits that may apply to the exercise of th
Reserved Rights. This easement
may not be the
F. Extinguishment. In the event that changed conditions render impossible the Ci ILII C
continued use of the Property for the conservation purposes, this Conservation Easeme agreement" of
may only be extinguished, in whole or in part, by judicial proceeding. the parties but
lBank's attorney
G. Eminent Domain. Whenever all or part of the Property is taken in the exerc will need to
of eminent domain so as to substantially abrogate the Restrictions imposed by this determine
Conservation Easement, Grantor and Grantee shall join in appropriate actions at the tin language to use
of such taking to recover the full value of the taking, and all incidental and direct
damages due to the taking.
H. Proceeds. This Conservation Easement constitutes a real property interest
immediately vested in Grantee. In the event that all or a portion of this Property is sold,
exchanged, or involuntarily converted following an extinguishment or the exercise of
eminent domain, Grantee shall be entitled to the fair market value of this Conservation
Easement. The parties stipulate that the fair market value of this Conservation Easement
shall be determined by multiplying the fair market value of the Property unencumbered
by this Conservation Easement (minus any increase in value after the date of this grant
attributable to improvements) by the ratio of the value of this easement at the time of this
grant to the value of the Property (without deduction for the value of this Conservation
Easement) at the time of this grant. The values at the time of this grant shall be the values
used, or which would have been used, to calculate a deduction for federal income tax
purposes, pursuant to Section 170(h) of the Internal Revenue Code (whether eligible or
ineligible for such a deduction). Grantee shall use its share of the proceeds in a manner
consistent with the purposes of this Conservation Easement.
L Notification. Any notice, request for approval, or other communication
required under this Conservation Easement shall be sent by registered or certified mail,
postage prepaid, to the following addresses (or such address as may be hereafter specified
by notice pursuant to this paragraph):
To Grantor:
[Name, address and fax number]
To Grantee:
[Name, address and fax number]
To Division of Water Resources:
Division of Water Resources
Attn: Nutrient Offset Banking Coordinator
1650 Mail Service Center
Raleigh, NC 27699-1650
J. Failure of Grantee. If at any time Grantee is unable or fails to enforce this
Conservation Easement, or if Grantee ceases to be a qualified grantee, and if within a
reasonable period of time after the occurrence of one of these events Grantee fails to
make an assignment pursuant to this Conservation Easement, then the Grantee's interest
shall become vested in another qualified grantee in accordance with an appropriate
proceeding in a court of competent jurisdiction.
K. Amendment. This Conservation Easement may be amended, but only in a
writing signed by all parties hereto, and provided such amendment does not affect the
qualification of this Conservation Easement or the status of the Grantee under any
applicable laws, and is consistent with the conservation purposes of this grant.
L. [For use if there is a document describing the current condition of the
property. The language provided is applicable if there is a mitigation plan that
accurately describes the current condition and uses of the property. If there is not such a
plan, another document we agree is accurate and can be identified and is in our files can
be referenced. /Present Condition of the Property. The wetlands, scenic, resource,
environmental, and other natural characteristics of the Property, and its current use and
state of improvement, are described in Section , Appendix B of the Mitigation Plan,
dated , prepared by Grantor and acknowledged by the Grantor and
Grantee to be complete and accurate as of the date hereof. Both Grantor and Grantee
have copies of this report. It will be used by the parties to assure that any future changes
in the use of the Property will be consistent with the terms of this Conservation
Easement. However, this report is not intended to preclude the use of other evidence to
establish the present condition of the Property if there is a controversy over its use.
TO HAVE AND TO HOLD the said rights and easements perpetually unto Grantee for
the aforesaid purposes.
IN TESTIMONY WHEREOF, the Grantor has hereunto set his hand and seal, the day
and year first above written.
[Signatures of the Grantor and Grantee in appropriate form]
APPENDIX 2
NC Division of Water Resources Stream Identification Form
ROY COOPER
Governor
MICHAEL S. REGAN
Secretary
S. DANIEL SMITH
Director
Watershed Investments NC, Inc.
Attn: Michael Herrmann
1630 Weatherford Circle
Raleigh, NC 27604
NORTH CAROLINA
Environmental Quality
February 12, 2020
DWR Project # 2020-0047
Orange County
Subject: On -Site Determination for Applicability to the Neuse Buffer Rules (15A NCAC 02B .0233)
Project Name: Banished Bull
Address / Location: Adjacent to 4211 Schley Rd, Rougemont, NC
Determination Date: January 28, 2020
Dear Mr. Herrmann:
Staff: Niki Maher
On January 28, 2020, Niki Maher of the Division of Water Resources conducted an on -site review of
features located on the subject property at the request of Watershed Investments NC, LLC to
determine the applicability to the Neuse Riparian Area Protection Rules (15A NCAC 02B .0233).
The enclosed map(s) depict the feature(s) evaluated. This information is also summarized in the
table below. Streams that are considered "Subject" have been located on the most recently
published NRCS Soil Survey of Orange County and/or the most recent copy of the USGS Topographic
(at 1:24,000 scale) map(s), have been located on the ground at the site, and possess characteristics
that qualify them to be at least intermittent streams. Features that are considered "Not Subject"
have been determined to not be at least intermittent or not present on the property or not
depicted on the required maps.
This determination only addresses the applicability to the buffer rules and does not approve any
activity within buffers or within waters of the state. There may be other streams or features
located on the property that do not appear on the maps referenced above. Any of the features
on the site may be considered jurisdictional according to the US Army Corps of Engineers and
subject to the Clean Water Act.
The following table addresses the features rated during the DWR site visit:
D E Q 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
�r 919.707.9000
DWR # 2020-0047, Banished Bull
Orange County
Page 2 of 4
Feature
E/I/P/ Other
Subject
to Buffer
Start @
Stop @
Depicted
on
Depicted on
ID
Rules
Soil Survey
USGS Topo
Reach 1
Perennial
Yes
South boundary (mid-
East property
yes
Yes
property)
boundary @ Schley Rd
Reach 2
Not present
No
(Pond outfall)
(Reach 1)
yes
Yes
Reach 3
Other
No
West property boundary,
Reach 1
yes
No
(wetland)
near SW corner of parcel
(crenulation)
Reach 4
Ephemeral
No
South property boundary,
Confluence with
no
No
woods in SE quadrant
q
Reach 1
(crenulation)
This on -site determination shall expire five (5) years from the date of this letter. Landowners or
affected parties that dispute a determination made by the DWR may request a determination by
the Director. An appeal request must be made within sixty (60) calendar days of the date of this
letter to the Director in writing.
If sending via U.S. Postal Service:
DWR 401 & Buffer Permitting Branch
Supervisor
1617 Mail Service Center
Raleigh, NC 27699-1617
If sending via delivery service (UPS, FedEx, etc.)
DWR 401 & Buffer Permitting Branch
Supervisor
512 N Salisbury St.
Raleigh, NC 27604
This determination is final and binding as detailed above, unless an appeal is requested within sixty
(60) calendar days.
This letter only addresses the features on the subject property and within the proposed project
easement and does not approve any activity within buffers or within waters of the state. If you
have any additional questions or require additional information, please call Niki Maher at (919) 707-
3633. This determination is subject to review as provided in Articles 3 & 4 of G.S. 150B.
Sincerely,
e?��Maic Haupt, Acting Supervisor
401 & Buffer Permitting Branch
Enclosures: USGS Topographical Map, NRCS Soil Survey, Site Map
cc: 401 & Buffer Permitting Branch files
Filename: 20200047BanishedBullDetermination 2-7-2020.docx
DWR # 2020-0047, Banished Bull
Orange County
Page 3 of 4
USGS Topo Map- 2019 Caldwell quad
Map attributes are approximately shown
i
a
.Reah1 --
Reach 2 �r
each 3
Reach 4
/00�j
NCRS Soil Survey- 1977 Orange County Map, Sheet 11
sat +r a ::�::: �: ;:: tTJ'.;; . �. .. + + r ` ' --..,--•-• --._-
+ Map attributes are approximately shown
,ry+ T • , 1 . a + +� . 1 . F •�f1•ar•� .,+y �a�� � i i +�+ • :1-/1 • • r
...
ar,+ri.+ • ..+•::: , f F e .•r�}.'�! . +�
1.i :�:'�.: i..'+ _:4.`.•,`.•. i!. •:; 'a'k.+�,'",a✓r' .�r
r rr :{� rr :•4. f..f.: rr�t':rr•rr �}" r ' :'�:F+`�r:r; �.ti::: ,';•:':
'K, F F s,� , ar . 1 Fes. +r." F'i'r " a; F '.�',+a',+.. rr r1 • • +: "
a a r♦,! •a .� , ,�a` 4jr" +r r 1a`"r "x� !:•r,: r r�;�:.•.'a• �,';�; ` Jr
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.:: J:':•.t,�.�:'i • 'ar.'rl:'t,, , • '•,,{,.','.'. ✓ r� l;�tL': � . fa �." . rr.'�.�r
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ai . + +• , "+'i • '� "'• r •'r. 'a ::"•+F a },•Frr
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— � v
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I
APPENDIX 3
Site Photos of Existing Conditions
1
Photo 1. Mainstem Perennial Stream at Schley Road looking Upstream (Photo Date:
11/23/2019).
Photo 2. Banished Bull Mainstem West End Looking Downstream (Photo Date: 11/23/2019)
1
Photo 3. Ephemeral Unnamed Tributary to Mainstem Stream (Photo Date: 11/23/2019).
Photo 4. Banished Bull Site and Mainstem (Photo Date: 1/28/2020)
2
APPENDIX 4
NC Natural Heritage Program Project Review
NCNHDE-11261
February 11, 2020
Mike Herrmann
Watershed Investments NC
1630 Weatherford Circle
Raleigh, NC 27604
RE: Info Request ID: 18
Dear Mike Herrmann:
The North Carolina Natural Heritage Program (NCNHP) appreciates the opportunity to provide
information about natural heritage resources for the project referenced above.
A query of the NCNHP database indicates that there are records for rare species, important natural
communities, natural areas, and/or conservation/managed areas within the proposed project
boundary. These results are presented in the attached ‘Documented Occurrences’ tables and map.
The attached ‘Potential Occurrences’ table summarizes rare species and natural communities that
have been documented within a one-mile radius of the property boundary. The proximity of these
records suggests that these natural heritage elements may potentially be present in the project area
if suitable habitat exists. Tables of natural areas and conservation/managed areas within a one-mile
radius of the project area, if any, are also included in this report.
If a Federally-listed species is documented within the project area or indicated within a one-mile
radius of the project area, the NCNHP recommends contacting the US Fish and Wildlife Service
(USFWS) for guidance. Contact information for USFWS offices in North Carolina is found here:
https://www.fws.gov/offices/Directory/ListOffices.cfm?statecode=37.
Please note that natural heritage element data are maintained for the purposes of conservation
planning, project review, and scientific research, and are not intended for use as the primary criteria
for regulatory decisions. Information provided by the NCNHP database may not be published
without prior written notification to the NCNHP, and the NCNHP must be credited as an information
source in these publications. Maps of NCNHP data may not be redistributed without permission.
Also please note that the NC Natural Heritage Program may follow this letter with additional
correspondence if a Dedicated Nature Preserve, Registered Heritage Area, Clean Water
Management Trust Fund easement, or an occurrence of a Federally-listed species is documented
near the project area.
If you have questions regarding the information provided in this letter or need additional assistance,
please contact Rodney A. Butler at rodney.butler@ncdcr.gov or 919-707-8603.
Sincerely,
NC Natural Heritage Program
Natural Heritage Element Occurrences, Natural Areas, and Managed Areas Intersecting the Project Area
Info Request ID: 18
February 11, 2020
NCNHDE-11261
No Element Occurrences are Documented within the Project Area
There are no documented element occurrences (of medium to very high accuracy) that intersect with the project area. Please note, however, that although the
NCNHP database does not show records for rare species within the project area, it does not necessarily mean that they are not present; it may simply mean that
the area has not been surveyed. The use of Natural Heritage Program data should not be substituted for actual field surveys if needed, particularly if the project
area contains suitable habitat for rare species. If rare species are found, the NCNHP would appreciate receiving this information so that we may update our
database.
No Natural Areas are Documented within the Project Area
Managed Areas Documented Within Project Area*
Managed Area Name Owner Owner Type
Triangle Land Conservancy Easement Triangle Land Conservancy Private
Orange County Open Space - Northeast Park Orange County Local Government
*NOTE: If the proposed project intersects with a conservation/managed area, please contact the landowner directly for additional information. If the project intersects with a Dedicated Nature Preserve
(DNP), Registered Natural Heritage Area (RHA), or Federally-listed species, NCNHP staff may provide additional correspondence regarding the project.
Definitions and an explanation of status designations and codes can be found at https://ncnhde.natureserve.org/content/help. Data query generated on February 11, 2020; source: NCNHP, Q1 Jan 2020.
Please resubmit your information request if more than one year elapses before project initiation as new information is continually added to the NCNHP database.
Page 2 of 4
Natural Heritage Element Occurrences, Natural Areas, and Managed Areas Within a One-mile Radius of the Project Area
Info Request ID: 18
February 11, 2020
NCNHDE-11261
Element Occurrences Documented Within a One-mile Radius of the Project Area
Taxonomic
Group
EO ID Scientific Name Common Name Last
Observation
Date
Element
Occurrence
Rank
Accuracy Federal
Status
State
Status
Global
Rank
State
Rank
Butterfly 34564 Erynnis martialis Mottled Duskywing 1952-07-01 H 5-Very
Low
---Significantly
Rare
G3 S2
Dragonfly or
Damselfly
33764 Somatochlora
georgiana
Coppery Emerald 2004-Pre H?5-Very
Low
---Significantly
Rare
G3G4 S2?
Freshwater
Bivalve
17551 Fusconaia masoni Atlantic Pigtoe 2011-04-26 B 3-Medium Proposed
Threatened
Endangered G2 S3
Freshwater
Bivalve
16425 Strophitus undulatus Creeper 2010-03-23 E 3-Medium ---Threatened G5 S3
Freshwater
Bivalve
4619 Villosa constricta Notched Rainbow 2010-03-23 E 3-Medium ---Threatened G3 S3
Vascular Plant 7366 Ranunculus ambigens Water-plantain
Spearwort
1963-07 H 3-Medium ---Special
Concern
Historical
G4 SH
Natural Areas Documented Within a One-mile Radius of the Project Area
Site Name Representational Rating Collective Rating
NEU/Little River (Orange/Durham) Aquatic Habitat R4 (Moderate)C3 (High)
Managed Areas Documented Within a One-mile Radius of the Project Area
Managed Area Name Owner Owner Type
Triangle Land Conservancy Easement Triangle Land Conservancy Private
Orange County Open Space - Northeast Park Orange County Local Government
Definitions and an explanation of status designations and codes can be found at https://ncnhde.natureserve.org/content/help. Data query generated on February 11, 2020; source: NCNHP, Q1 Jan 2020.
Please resubmit your information request if more than one year elapses before project initiation as new information is continually added to the NCNHP database.
Page 3 of 4
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Page 4 of 4
APPENDIX 5
NC State Historic Preservation Office Project Review
North Carolina Department of Natural and Cultural Resources
State Historic Preservation Office
Ramona M. Bartos, Administrator
Governor Roy Cooper Office of Archives and History
Secretary Susi H. Hamilton Deputy Secretary Kevin Cherry
Location: 109 East Jones Street, Raleigh NC 27601 Mailing Address: 4617 Mail Service Center, Raleigh NC 27699-4617 Telephone/Fax: (919) 807-6570/807-6599
January 28, 2020
Mike Hermann
Watersheds Investment NC
1630 Weatherford Circle
Raleigh, NC 27604
Re: Banished Bull Nutrient and Buffer Mitigation Bank Site, 4211 Schley Road, Hillsborough,
Orange County, ER 20-0069
Dear Mr. Hermann:
Thank you for your email of December 27, 2019, concerning the above project.
We have conducted a review of the project and are aware of no historic resources which would be affected by
the project. Therefore, we have no comment on the project as proposed.
The above comments are made pursuant to Section 106 of the National Historic Preservation Act and the
Advisory Council on Historic Preservation’s Regulations for Compliance with Section 106 codified at 36 CFR
Part 800.
Thank you for your cooperation and consideration. If you have questions concerning the above comment,
contact Renee Gledhill-Earley, environmental review coordinator, at 919-814-6579 or
environmental.review@ncdcr.gov. In all future communication concerning this project, please cite the above
referenced tracking number.
Sincerely,
Ramona Bartos, Deputy
State Historic Preservation Officer
ID#* 20200047 Version* 1
Select Reviewer:*
Katie Merritt
Initial Review Completed Date 04/01/2020
Mitigation Project Submittal - 3/31/2020
Is this a Prospectus, Technical Proposal or a New Site?* r Yes r No
Type of Mitigation Project:*
r Stream r Wetlands W Buffer V Nutrient Offset
(Select all that apply)
Project Contact Information
Contact Name:*
Michael Herrmann
Project Information
...................................................................................
ID#:* 20200047
Existing IDr
Project Type:
Project Name:
County:
Email Address:*
mherrmann@watershedinvestment
snc.net
Version:
*1
Existing Version
r DMS r Mitigation Bank
Banished Bull Buffer Mitigation and Nutrient
Offset Site
Orange
Document Information
Mitigation Document Type:*
Mitigation Bank Instrument
File Upload: MBI_BanishedBull_20200331.pdf 1.28MB
Rease upload only one RDFof the corrplete file that needs to be subrritted...
Signature
Print Name:* Michael Herrmann
Signature:*
/ '&'e-W"t' �''?'r,V
1
AGREEMENT TO ESTABLISH THE BANISHED BULL BANKING INSTRUMENT IN THE UPPER
NEUSE RIVER BASIN FOR RIPARIAN BUFFER AND NUTRIENT OFFSET MITIGATION CREDITS
PURSUANT TO THE FALLS LAKE WATER SUPPLY NUTRIENT STRATEGY
TABLE OF CONTENTS
I.PREAMBLE .................................................................................................................................. 2
II.LOCATION AND GEOGRAPHIC SERVICE AREA .................................................................... 2
III.AUTHORITIES ............................................................................................................................ 3
IV.ESTABLISHMENT OF BANISHED BULL BANK PARCEL ....................................................... 3
V.BANK PARCEL DEVELOPMENT PACKAGE ........................................................................ 4
VI.POST CONSTRUCTION DOCUMENTATION FOR THE BANK PARCEL ................................ 6
VII.CALCULATION OF MITIGATION CREDITS ............................................................................... 8
VIII.CREDIT RELEASE SCHEDULE ................................................................................................ 10
IX.PROCEDURE FOR DEBITING AND CREDITING MITIGATION CREDITS ............................. 11
X.BANK PARCEL CLOSURE ....................................................................................................... 12
XI.GENERAL PROVISIONS ......................................................................................................... 13
ATTACHMENTS
A.Division of Water Resources Authority Document
B.Buffer Restoration Ledger Template
2
I. PREAMBLE
This Mitigation Banking Instrument ("Instrument") regarding the establishment, use, operation, and
maintenance of the Banished Bull Nutrient Offset and Buffer Mitigation Bank Parcel ("Bank
Parcel") to provide Neuse Riparian Buffer mitigation credit ("Riparian Buffer Credits") and Falls
Lake Water Supply nutrient load reduction credit ("Nutrient Offset Credits") is made and entered
into by and among Watershed Investments NC, LLC acting as the Bank Sponsor ("Sponsor"), and
the North Carolina Department of Environmental Quality - Division of Water Resources ("DWR").
This Instrument is in accordance with 15A NCAC 02B .0240 and the Consolidated Mitigation Rule
15A NCAC 02B .0295, which became effective on November 1, 2015 (Attachments D and E).
The purpose of the Bank is:
A. To improve water quality of the unnamed Banished Bull mainstem tributary to South Fork Little River
and its tributary through the restoration of riparian buffer habitat and adjacent riparian
areas.
B. To provide mitigation and sell any resulting Riparian Buffer Credits and/or Nutrient Offset
Credits to third parties in the Neuse River Basin and Falls Lake Watershed respectively, for
development (both existing and proposed) requiring such mitigation.
II. LOCATION AND GEOGRAPHIC SERVICE AREA
A. The Geographic Service Area ("GSA") is the designated area wherein a Bank can reasonably
be expected to sell Riparian Buffer Credits and/or Nutrient Offset Credits for impacts due to
development activities.
B. The Bank Parcel is located within the Neuse River Basin in the State of North Carolina, United
States Geological Survey ("USGS") 8-digit Hydrologic Unit Code ("HUC") 03020201 of the
Upper Falls Watersheds as defined in 15A NCAC 02B .0276.
C. The project is comprised of one parcel of land in Orange County, NC. The Bank Parcel
property, currently used for grazing cattle, and is accessed from Schley Road east of the
community of Schley, NC. The project is located at 36.1500 N, 79.0461 W.
D. The unnamed tributaries (UTs) to South Fork Little River and are the receiving bodies for
stormwater runoff from this parcel. South Fork Little River is classified by DWR as Nutrient
Sensitive Waters (NSW), High Quality Water (HQW), and a Water-Supply II (WS-II) where the
UT enters the river.
E. Sale or transfer of Riparian Buffer Credits shall be limited to the 8-digit HUC in which the Bank
Parcel is located unless otherwise authorized by the DWR or delegated local government in
accordance with 15A NCAC 02B .0295.
F. Sale or transfer of Nutrient Offset Credits shall be limited to the Falls Lake Watershed, as
defined in Rule 15A NCAC 02B .0276 and in accordance with 15A NCAC 02B .0282 (2).
3
III. AUTHORITIES
A. The Bank will be used to provide Riparian Buffer Credit and Nutrient Offset Credit in
accordance with the requirements in the DWR Authority document referenced herein as
"Attachment A" and attached to this Instrument.
B. Projects eligible for utilization of the credits are those requiring authorization under the
requirements of Attachment A and any new approved North Carolina ("State") statutes and
rules for the Neuse Nutrient Sensitive Waters Management Strategy - and- for the Falls Lake
Water Supply Nutrient Strategy.
C. The selling of mitigation credits shall be consistent with approved North Carolina ("State")
statutes and rules for the Neuse Nutrient Sensitive Waters Management Strategy -and- for the
Falls Lake Water Supply Nutrient Strategy.
D. Mitigation activities proposed under this Instrument and corresponding Bank Parcel
Development Package (BPDP) to generate Riparian Buffer Credits and Nutrient Offset Credits
shall be consistent with North Carolina statutes and rules for the Neuse Nutrient Sensitive
Waters Management Strategy that are in place at the time a complete BPDP is submitted to
DWR.
IV. ESTABLISHMENT OF BANISHED BULL BANK PARCEL
A. In accordance with 15A NCAC 02B .0295 and 15 NCAC 02B .0240, DWR has provided a "Site
Viability Letter" for the Bank Parcel proposed under this Instrument. The Site Viability Letter is
not an approval of the site to generate mitigation credits but is a preliminary review of the Bank
Parcel that details and confirms existing land use conditions, defines the riparian sites
(Enhancement, Preservation, or Restoration), and identifies features (stream, ditches, ponds,
etc.) that meet general criteria to be suitable to generate mitigation credits. The Site Viability
Letter that applies to this Bank Parcel were issued by DWR on February 12, 2020.
B. The Bank Parcel proposed for inclusion under this Instrument shall require a Bank Parcel
Development Package ("BPDP") be submitted to, and approved by, the DWR prior to use of
the Bank Parcel for mitigation purposes or sale or transfer of any associated credits. The
contents of the BPDP are provided in Section V.
C. The BPDP will be placed on public notice and made available for public commenting for 15
calendar days.
D. Riparian Buffer Credit may be achieved through restoration, enhancement and preservation of
DWR riparian buffers along mainstem and unnamed tributary on the Bank Parcel according to
15A NCAC 02B .0295 (n) and (o). Buffer credits are only attainable if the width of the
restoration, enhancement and preservation site is at least 20 feet from the top of bank.
E. The Bank Parcel is intended to provide Neuse Riparian Buffer mitigation through Planting
hardwood trees on a Restoration Site, as defined in 15A NCAC 02B .0295 (b) adjacent to the
perennial and ephemeral streams which are subject to the buffer protection rule 15A NCAC
4
.0233.
F. Nutrient Offset Credit may be achieved through restoration of the riparian areas adjacent to
the streams on this Bank Parcel where agriculture was determined by DWR to be the
predominant land use. The width of the restoration area will extend a minimum of fifty (50) feet
from the top of the stream bank and extend landward up to a maximum distance of two-
hundred (200) feet on all sides of the surface waters.
G. The Bank Parcel is expected to provide Nutrient Offsets as follows:
1. Converting agricultural land uses within riparian areas to non-agricultural land uses by
place a conservation easement around riparian areas along streams.
2. Planting hardwood trees on a Restoration Site, as defined in 15A NCAC 2B .0295 (b)
adjacent to mitigation streams where agriculture has been determined by DWR to be
the predominant land use.
3. Fencing cattle from the conservation area
H. The total area of mitigation on the Bank Parcel is expected to be 8.29 acres.
V. BANK PARCEL DEVELOPMENT PACKAGE
A. The Banished Bull Bank Parcel Development Package (BPDP) submitted under this
Instrument shall be submitted to DWR for review and must be approved by DWR prior to any
construction on the Bank Parcel. The BPDP must describe any changes that have occurred to
the site between the date of the Site Viability Letter and the date the BPDP is submitted to DWR.
The BPDP shall include detailed information consistent with the sections below concerning:
1) site location (8-digit HUC is required); 2) existing conditions with current photos; 3)
proposed buffer mitigation and nutrient offset activities including a detailed vegetation plan; 4)
monitoring and maintenance plans; 5) financial assurances; 6) associated buffer
mitigation/nutrient credit calculations, which shall include credit generation, service area, and
accounting as appropriate for each regulatory authority; 7) stream buffer determination letter
from DWR 8) site viability letter from DWR, and
9) service area.
B. The Sponsor will obtain all applicable federal, state, and local documentation, permits, or
authorizations needed to construct and maintain the Bank Parcel. This Instrument does
not qualify as, or substitute for, such documentation, permit, or authorization.
C. Any restoration activities or proposed construction within the riparian buffers and other
riparian areas on the Bank Parcel to produce Riparian Buffer Credit or Nutrient Offset
Credit must be approved by DWR in writing prior to implementation. The failure of the
Sponsor to comply with this requirement may result in a revised or reduced credit release
schedule for that specific mitigation site.
5
D. Requests for deviation from the approved BPDP must be submitted to DWR in writing. Written
approval from the DWR must be received prior to implementing any deviation from the
approved BPDP.
Property Disposition & Long-Term Management
E. Prior to the release of any credits, the Sponsor shall acquire a permanent conservation
easement at the Orange County Register of Deed's office that is sufficient to ensure protection,
operation and maintenance of restored riparian buffers and other riparian areas for the duration
specified in the approved BPDP.
F. The form of the conservation easement shall be consistent with the standards employed by
the State of North Carolina in the protection of restored riparian buffers and riparian areas and
shall be approved by the DWR prior to the release of any credits.
G. The Sponsor shall not grant additional easements, right of ways, or any other property
interest in or to the project areas, without prior approval from the DWR.
H. The Sponsor agrees to transfer or assign the conservation easement and its interests in
perpetuity to a qualified holder under NC General Statute ("GS") 121-34 et seq. and 170(h) of
the Internal Revenue Code prior to the submittal of the Year 4 Monitoring Report. The holder
shall be a land trust or stewardship program that will hold and enforce the conservation
easement and the interests in perpetuity. The Sponsor shall choose a land trust or stewardship
program that is accredited by the Land Trust Accreditation Commission and/or has been
approved by DWR prior to the end of the fourth-year monitoring period. A land trust must be
certified under 501(c)(3) of the Internal Revenue Code.
I. In the event that the Sponsor is also the owner of the underlying fee interest in the property,
the conveyance of the conservation easement to a land trust or stewardship fund must be
arranged at the outset of the approved BPDP.
Financial Assurances
J. Following approval of the BPDP, the Sponsor shall provide a Performance/Maintenance Bond
from a surety company that is rated no less than an "A-" as rated by A.M. Best, and it is the
Sponsor's responsibility to confirm that the surety company is still rated no less than an "A-"
with each annual bond renewal.
K. The Performance Bond amount shall be 100% of the estimated cost for implementation of the
mitigation activities of the Bank Parcel as described in the approved BPDP. No bond shall be
less than $150,000.00 to cover construction costs .
L. Alternatively, in lieu of posting the Performance Bond, the Sponsor may elect to construct
the project prior to the first credit release.
M. Once DWR has released all credits for completion of all the items listed below, then the Bank
6
Sponsor will be released from its performance obligations under the performance bond
required in Item J-L of this section:
1. Instrument and BPDP Approved by DWR, Conservation Easement Recorded,
Financial Assurance Posted;
2. Mitigation Site Earthwork and Planting and Installation of Monitoring Devices Completed;
3. As-Built Report as described in Section VI has been received by DWR; and
4. DWR has submitted a written approval of the As-Built Report.
N. To comply with this section, DWR must be Obligee on all performance bonds.
VI. POST CONSTRUCTION DOCUMENTATION FOR THE BANK PARCEL
As-Built Report
A. The Sponsor agrees to perform all necessary work, in accordance with the provisions of this
Instrument, to establish, maintain, and monitor Neuse Riparian Buffers or other riparian areas
until Item B (1) and (2) of Section X have been satisfied.
B. The Sponsor will submit an as-built plan and report for the Bank Parcel within 30 calendar days
after completing the establishment of the buffer area and nutrient offset area. The as-built
report will describe any deviation from the approved BPDP and will document the following:
1. Buffer restoration: planting details, invasive species control, monitoring device
locations, vegetation plot locations, photo point locations, surface and groundwater
elevations, as appropriate.
2. Boundary Survey of the conservation easement area, signed and sealed by a licensed
surveyor, including an enumeration of the final mitigation areas for riparian buffer
and/or nutrient offset mitigation credits in both square feet and acres.
3. As-built aerial map of the mitigation area showing where restoration, enhancement and
preservation were performed and any deviations to the Bank Parcel from what was
approved in the BPDP.
4. Aerial map of the mitigation that was included in the approved BPDP.
Financial Assurance
C. After completion of the restoration activities, a separate Performance/Maintenance Bond
will be secured for 100% of the estimated cost to implement the monitoring and
maintenance plan as described in the approved BPDP. The Bond must be from a surety
company that is rated no less than an "A-" as rated by A.M. Best, and it is the Sponsor's
responsibility to confirm that the surety company is still rated no less than an "A-" with each
annual bond renewal.
D. A Performance/Maintenance Bond shall be secured each year for a minimum of five years,
and until DWR has released all mitigation credits to the Bank Sponsor. Upon DWR approval,
7
the bond may be lowered each year based on the adjusted cost to complete the monitoring.
No bond shall be less than $100,000 to cover monitoring and maintenance costs.
E. Once DWR has released all credits for completion of Tasks 1-9 according to the credit release
schedule in Section VIII, the Bank Sponsor can be released from its performance obligations under
the performance bond required in "C" of this Section.
Monitoring and Maintenance Reports
F. The Sponsor shall monitor the Bank Parcel as described in the BPDP until such time as DWR
determines that the performance standards described below have been met. The monitoring
period shall be a minimum of five consecutive years.
G. Performance Standards for Vegetation: Native hardwood trees should be planted at a density
sufficient to provide 260 stems per acre after five years. A minimum of four (4) native hardwood
trees must be planted. No one species shall be greater than 50% of the planted stems. A list
of species for planting will be detailed in the BPDP for approval. Native hardwood tree
volunteer species may be included to meet performance standards as determined by the
DWR.
H. A "stem" means a woody seedling, sapling, shrub or tree, no less than 10 centimeters in height.
I. If the performance standards of the vegetation are not met, supplemental plantings may be
required. Supplemental plantings will be utilized until the required densities have been
achieved and maintained for five years. Bank Parcel maintenance, such as ensuring diffuse
flow, managing invasive species, and pest control will be included in the BPDP.
J. Monitoring Reports for Riparian Buffer Credit or Nutrient Offset Credit: Reporting criteria
of the riparian buffer restoration and enhancement shall be based on the Carolina Vegetation
Survey (CVS) - EEP Protocol for Recording Vegetation Level 2 Plot Sampling Only Version
4.0 or any updated versions of this protocol in place at the date of acceptance of the BPDP.
The Sponsor shall submit to the DWR an annual monitoring report no later than December 31
of each year for a minimum of five consecutive years after the first full growing season. This
report will describe the conditions of the Bank Parcel, including an evaluation of the
performance standards of the vegetation contained within the approved BPDP. Reports shall
contain the following:
1. A U.S. Geological Survey map showing location of the Bank Parcel;
2. A detailed narrative summarizing the condition of the Bank Parcel along with any
maintenance or remediation performed that year; and
3. A map, survey, or other figure showing locations of sampling plots, permanent photo
points, location of transects, etc.; and
4. Monitoring data, including specific vegetative counts showing that the trees or tree and
shrub species planted are meeting performance standards and updated photographs;
and
8
5. A copy of the most recent Bank credit/debit ledgers; and
6. Corresponding verification letters from designated local governments upon request; and
7. Corresponding Mitigation Transfer Certificates upon request.
8. Proof of performance bond renewal to cover the next monitoring year (if applicable).
Contingency Plans/Remedial Actions
K. In the event the Bank Parcel fails to achieve the success criteria described in this Instrument
and the approved BPDP, the Bank Sponsor shall develop necessary contingency plans in
coordination with the DWR and implement appropriate remedial actions for the Bank Parcel
and the Bank. Depending on the degree of remedial actions required, the DWR may modify
the monitoring period.
VII. CALCULATION OF MITIGATION CREDITS
Riparian Buffer Credits
A. All Riparian Buffer Credits shall be determined based on the ratios and percentages provided
in 15A NCAC 02B .0295 (m) and (n) .
B. Riparian buffer restoration on the Bank Parcel, as described in 15A NCAC 02B .0295(n) and
(o), defined in 15A NCAC 02B .0295(b) and performed on agriculture lands within the Bank
Parcel, may be used for either Riparian Buffer Credit or Nutrient Offset Credit, but not both.
C. Riparian buffer preservation on the Bank Parcel, as described in 15A NCAC 02B .0295(0) and
defined in 15A NCAC 02B .0295(b), can be used for only Riparian Buffer Credit.
D. Riparian Buffer Credit is defined as one (1) buffer credit per one square foot or 43,560 buffer
credits per one acre.
Nutrient Offset Credits
E. All Nutrient Offset Credits will be determined by including the applicable ratio as provided in
15A NCAC 02B .0295 (m) for a Restoration and Enhancement Site. All riparian areas proposed
for nutrient offset credits must be a minimum of fifty (50) feet from the top of the stream bank.
F. Nutrient Offset Credits cannot be achieved through the preservation activities performed on
this Bank Parcel.
G. Nutrient Abatement of Restored Riparian Area: The Sponsor and DWR agree:
i. The pounds of nitrogen offset per acre of restored or enhanced riparian areas shall be
2,273.02 lbs./acre.
9
ii. The pounds of phosphorus offset per acre of restored or enhanced riparian areas shall
be 146.4 lbs./acre.
H. The Sponsor and DWR agree that the methodology and calculations for determining total
nitrogen and total phosphorous reduction, associated with restoration of riparian areas as
described in Section IV of this Instrument, shall be fixed as part of the approval of this
Instrument, with the fixed amount not changing during the Bank Parcel Development or credit
release schedule for the Bank Parcel unless the viability letter for that Bank Parcel has expired.
This space left blank intentionally, do not add text to this space.
10
VIII. CREDIT RELEASE SCHEDULE
A. Credit Release: Upon submittal of all appropriate documentation by the Sponsor, and
subsequent approval by DWR, it is agreed that the mitigation credits associated with the
Bank Parcel will become available for sale to a third party in accordance with the following
schedules:
Table I - Credit Release Schedule for Riparian Buffer and Nutrient Offset Credits
Task
Project Milestone
% Credit
Available for
Sale
1
MBI and BPDP Approved by DWR, Conservation Easement
Recorded* and Financial Assurance Posted
20
2
Mitigation Site Earthwork, Planting and Installation of Monitoring
Devices Completed
20
3
Monitoring Financial Assurance Posted and Approval of As-Built
Report
10
4
Monitoring Report #1: Approved by the DWR and financial
assurance renewed**
10
5
Monitoring Report #2: Approved by the DWR and financial
assurance renewed**
10
6
Monitoring Report #3: Approved by the DWR and financial
assurance renewed**
10
7
Item B (1) of Section X in this Instrument has been completed and
approved by DWR.
5
No remaining credits will be released until Task 7 has been
satisfied
8
Monitoring Report #4: Approved by the DWR and financial
assurance renewed**
5
9
Monitoring Report #5: Approved by the DWR * * and final site visit
by DWR has been conducted
10
Total 100%
* For specification, please see Section V in this Instrument
* * DWR Approval provided upon a determination that the site is meeting success criteria
contained within the approved BPDP
B. DWR may modify the credit release schedule based on the information submitted or the
order in which required information is received. DWR will notify the Sponsor of any
modification to the credit release schedule.
11
IX. PROCEDURE FOR DEBITING AND CREDITING MITIGATION CREDITS
Credit Ledgers
A. The Bank Sponsor shall maintain four credit ledgers, if applicable, for the Bank Parcel under
this Instrument : one accounting for buffer restoration and enhancement credits in square feet
and acres, one accounting for buffer preservation credits in square feet and acres, one
accounting for nitrogen nutrient offset credits in pounds and acres, and one accounting for
phosphorus nutrient offset credits in pounds and acres.
B. Each credit ledger shall be submitted on a separate 8 ½in X 11in spreadsheet with legible font
style and font size. All ledgers shall be submitted using the templates provided in Attachments
C and D of this Instrument or any updated versions to these templates as provided by DWR.
Credit Processing
C. Riparian Buffer Credits generated on this Bank Parcel must be provided to offset impacts within
the Neuse River Basin according to 15A NCAC 02B .0295 (g).
D. Nutrient Offset Credits generated on this Bank Parcel can only be provided to offset nutrient
loadings within the Upper and Lower Falls Watersheds. Impacted areas in the Upper Falls
Watershed can only mitigate in the Upper Falls Watershed . Impacted areas in the Lower Falls
Watershed can mitigate in any portion of the Falls Watershed per 15A NCAC 02B .0282.
E. Available mitigation credits (credits that have been released by DWR but not sold by the Sponsor)
that are generated from riparian buffer restoration or enhancement , as defined in 15A NCAC 02B
.0295 (b) and described in 15A NCAC 02B .0295 (n) on agricultural lands, can be converted and
transferred from Riparian Buffer Credits to Nutrient Offset Credits and from Nutrient Offset Credits
back to Riparian Buffer Credits upon written approval from DWR.
F. The Bank Sponsor shall obtain written verification of nutrient offset need from a designated local
government in the Falls Watershed prior to debiting Nutrient Offset Credits from the Bank Parcel.
G. The Bank Sponsor shall obtain verification of buffer mitigation required from a delegated local
government in the Neuse River Basin or DWR prior to debiting Riparian Buffer Credits from
the Bank Parcel.
H. All credit and debit transactions for each Bank Parcel under this Instrument shall be accurately
depicted in the credit ledgers. The Sponsor shall submit accurate and up-to-date credit ledgers
for each Bank Parcel by the tenth (10th) of each month. At a minimum and only upon request,
DWR shall receive a hard copy of updated credit ledgers along with corresponding Mitigation
Credit Transfer Certificates and all corresponding letters from the designated local
governments or DWR where applicable once a year. Notification of all credit sales shall be
provided to DWR until all credits that have been released have been sold.
12
Mitigation Credit Transfer Certificates
I. All credit sales will include a Mitigation Credit Transfer Certificate ("Certificate") that is
required to be provided to the buyer of Riparian Buffer and/or Nutrient Offset credits,
that will include, at a minimum, the following information:
i. Bank Details: (1) sponsor Name, (2) bank parcel name as it appears in this
Instrument, (3) DWR project number for the BPDP.
ii. Credit Details: (1) date of receipt, (2) identify if full or partial payment, (3 - when
applicable) amount of nitrogen credits purchased in pounds and confirmation from
the designated local government of the amount required, (4 – when applicable)
amount of phosphorous credits purchased in pounds and confirmation from the
designated local government of the amount required, and (5 -when applicable)
amount of Riparian Buffer Credits purchased in square feet and the confirmation
from DWR or the local government of the amount required.
iii. Project Details: (1) project name as it appears on DWR or local government
permits and/or certifications, (2) 12-digit HUC, (3) river basin, (4) nutrient
strategy applicable to the project, (5 - when applicable) designated local
government requiring Nutrient Offset Credits, and/or (6) DWR authorization
number or delegated local government requiring Riparian Buffer Credits for this
project.
J. If the DWR determines that the Bank is operating at a deficit (e.g. the Sponsor is closing
on sales and/or transferring credit that is not available), or the Bank is selling credits out
of compliance with statutes, rules or this Agreement, the sale/transfer of credits will
immediately cease, and the DWR, in consultation with the Sponsor, will determine what
remedial actions are necessary.
X. BANK PARCEL CLOSURE
A. Bank Parcel Closure shall be identified as the event when the Sponsor is relieved of all
of its responsibilities to the Bank Parcel and there are no mitigation credits left to sell.
B. Bank Parcel Closure shall commence only after all of the following events have occurred:
i. Transfer or assign the conservation easement and all of its interests, in perpetuity,
to a land trust or stewardship program as described in Section V of this instrument.
ii. All five years of monitoring completed and all monitoring reports submitted and
approved by DWR.
iii. All credits have been released and debited and updated ledgers showing zero
credit balances have been submitted and approved by DWR.
13
XI. GENERAL PROVISIONS
A. Upon the presentation of proper credentials, and during normal business hours, the
Sponsor and the landowner shall grant permission to the Director of DWR, an
authorized representative of the Director of DWR, to enter the property containing
the Bank Parcel(s).
B. Amendments: This Banking Instrument may be amended or modified only with written
approval of all signatory parties.
C. Any transfer of the Sponsor's rights or obligations outlined in this Instrument or any
other agreement referenced in this Instrument to a third party must be approved by
DWR prior to the transfer.
D. Force Majeure : After 100% of all the credits have been released according to the credit
release schedule in Section VIII and confirmation has been received by the DWR that
the Conservation Easement has been successfully assigned in compliance with Item
H of Section V, the sponsor will not be responsible for Bank failure that is attributed to
natural catastrophes including but not limited to flood, drought, disease, regional pest
infestation, etc. that are beyond the control of the Sponsor.
E. However, if an event occurs before 100% of all the credits have been released
according to the credit release schedule in Section VIII, then the Sponsor shall take
remedial action to restore the property to its condition prior to the event, in a manner
sufficient to provide adequate mitigation to cover credits that were sold prior to the
occurrence of the event . Such remedial action shall be taken by the Sponsor only
to the extent necessary and appropriate, as determined by DWR and the Sponsor.
DWR must concur in writing that a force majeure event has occurred for this provision to apply.
F. Oversight: Actions taken by DWR may include, but are not limited to, the following:
iv. Site visits.
v. Issuance of Site Viability Letters.
vi. BPDP review and approval of items listed in Section V of this instrument.
vii. As-Built Report review and approval of items listed in Section VI of this
instrument .
viii. Monitoring Report review and approval of items listed in Section VI of
this instrument.
ix. Credit Ledger review and approval of items listed in Section IX of this
instrument .
x. Certificate review of items listed in Section IX of this instrument and
cross analysis to credit ledgers.
xi. Information requests, file reviews and audits
Reports, ledgers, files and other information shall be made available to DWR upon request,
unless otherwise specified in this or any other document.
14
G. Validity of the Banking Instrument: This Instrument will become valid on the date of the last
party's signature.
H. Specific Language of this Banking Instrument Shall Be Controlling: To the extent that specific
language in this document changes, modifies, or deletes terms and conditions contained in
those documents that are incorporated into the Instrument by reference, and that are not
legally binding, the specific language within the Instrument shall be controlling.
I. Any disputes over decisions regarding this Instrument, shall be referred to the Director of DWR
for a decision. The Director's decision is subject to review as provided in Articles 3 and 4 of G.S.
150B.
J. This Agreement shall be binding upon the parties and is entered into knowingly, intelligently,
and voluntarily.
K. Notices: All notices and other communications which may be or are required to be given or
made by any party to the other shall be in writing and shall be deemed to have been properly
given and received on the date delivered in person or deposited in the United States mail,
registered or certified, return receipt requested, to the addresses set out below, or at such
other addresses as specified by written notice delivered in accordance herewith.
Bank Sponsor: Watershed Investments NC, LLC
Attn: Mike Herrmann
1630 Weatherford Circle
Raleigh, NC 27604
DWR: NC Division of Water Resources - 401 & Buffer Permitting
Branch Attn: Nutrient Offset Banking Coordinator
1617 Mail Service
Center Raleigh, NC
27699-1617
L. Applicable Law: This Agreement shall be construed under the laws of the State of North Carolina.
15
Watershed Investments NC, LLC
By: Michael Herrmann (Print)
(Signature)
Title: Manager
Date:
NORTH CAROLINA DEPARTMENT OF ENVIRONMENTAL QUALITY-DIVISION OF
WATER RESOURCES
By: (Print)
(Signature)
Title:
Date:
Nutrient Offset Program & Buffer Mitigation Program
Authorities for UMBI/MBI
Updated
03/26/2013
Attachment A
All Basins
General Statutes:
G.S. §143-214.1 Water; water quality standards and classifications; duties of Commission
G.S. §143-214.11 Ecosystem Enhancement Program
G.S. §143-214.26 Nutrient Offset Credits
G.S. §143-214.20-24 Riparian Buffer Protection Program
G.S. §143-214.7 Stormwater runoff rules and programs
G.S. §143-215.3(a)(1) General powers of Commission and Department; auxiliary powers
G.S. §143-215.6A Enforcement Procedures: Civil Penalties
G.S. §143-215.6B Enforcement Procedures: Criminal Penalties
G.S. §143-215.6C Enforcement Procedures: Injunctive Relief
G.S. §143-215.8B Basinwide Water Quality Management Plans
G.S. §143B-282 Environmental Management Commission – creation; powers and duties
Session Laws
S.L. 2012-200 (Amendment to G.S. §143-214.23 and G.S. §143-215.1)
S.L. 2011-343 (Amendment to G.S. §143-214.11)
S.L. 2009- 337 (Amendment to G.S. §143-214.11)
Administrative Rules:
15A NCAC 02B .0202 Definitions
15A NCAC 02B .0223 Nutrient Sensitive Waters
15A NCAC 02B .0237 Best Management Practice Cost-Effectiveness Rate
15A NCAC 02B .0240 Nutrient Offset Payments
15A NCAC 02B .0269 Riparian Buffer Mitigation Fees to the NC Ecosystem Enhancement Program
15A NCAC 02B .0274 Nutrient Offset Payment Rates for the NC Ecosystem Enhancement Program
15A NCAC 02B .0301 Stream Classifications
Neuse River Basin Buffer and Neuse Nutrient Strategy
Session Laws
S.L. 2011-394
S.L. 1998-221 (Part I)
S.L. 1995-572
Administrative Rules:
15A NCAC 02B .0232 Basin Nutrient Reduction Goal
15A NCAC 02B .0233 Protection and Maintenance of Existing Riparian Buffers
15A NCAC 02B .0234 NPDES Wastewater Discharge Requirements
15A NCAC 02B .0235 Basinwide Stormwater Requirements
15A NCAC 02B .0236 Agricultural Nitrogen Loading Reduction
15A NCAC 02B .0238 Agricultural Nitrogen Reduction Strategy
15A NCAC 02B .0239 Nutrient Management
15A NCAC 02B .0241 Delegation of Authority for the Protection and Maintenance of Existing Riparian Buffers
15A NCAC 02B .0242 Mitigation Program for Protection and Maintenance of Riparian Buffers
Neuse River Basin Buffer and Falls Lake Nutrient Strategy
General Statutes and Session Laws:
G.S. §143-214.5 Water Supply Watershed Protection
S.L. 2012-187
S.L. 2011-394
S.L. 2009-486
S.L. 1998-221 (Part I)
Administrative Rules:
15A NCAC 02B .0233 Protection and Maintenance of Existing Riparian Buffers
15A NCAC 02B .0241 Delegation of Authority for the Protection and Maintenance of Existing Riparian Buffers
15A NCAC 02B .0242 Mitigation Program for Protection and Maintenance of Riparian Buffers
15A NCAC 02B .0275 Purpose and Scope
15A NCAC 02B .0276 Definitions
15A NCAC 02B .0277 Stormwater Management for New Development
15A NCAC 02B .0278 Stormwater Management for Existing Development
15A NCAC 02B .0279 Wastewater Discharge Requirements
15A NCAC 02B .0280 Agriculture
15A NCAC 02B .0281 Stormwater Requirements for State and Federal Entities
15A NCAC 02B .0282 Options for Offsetting Nutrient Loads
Jordan Buffer and Jordan Water Supply Nutrient Strategy
General Statutes and Session Laws:
G.S. §143-214.5 Water Supply Watershed Protection)
S.L. 2012-201
S.L. 2012-187
S.L. 2009-216
S.L. 2009-484
S.L. 2006-259 (Section 31(a))
S.L. 2005-190
S.L. 1999-329 (part of G.S. 143B-282)
Administrative Rules:
15A NCAC 2B .0262 Purpose and Scope
15A NCAC 2B .0263 Definitions
15A NCAC 2B .0264 Agriculture
15A NCAC 2B .0265 Stormwater Management for New Development
15A NCAC 2B .0267 Jordan Water Supply Nutrient Strategy
15A NCAC 2B .0268 Mitigation for Riparian Buffers
15A NCAC 2B .0270 Wastewater Discharge Requirements
15A NCAC 2B .0271 Stormwater Requirements for State and Federal Entities
15A NCAC 2B .0272 Fertilizer Management
15A NCAC 2B .0273 Options for Offsetting Nutrient Loads
Nutrient Offset Program & Buffer Mitigation Program
Authorities for UMBI/MBI
Updated
03/26/2013
Tar-Pamlico River Basin Buffer and Tar-Pamlico Nutrient Strategy
Session Laws:
S.L. 2011-394
S.L. 1999-329 (part of G.S. 143B-282)
Administrative Rules:
15A NCAC 2B .0229 Nutrient Offset Payments for Non-Tar-Pamlico Basin Association Members
15A NCAC 2B .0255 Agricultural Nutrient Loading Goals
15A NCAC 2B .0256 Agricultural Nutrient Control Strategy
15A NCAC 2B .0257 Nutrient Management
15A NCAC 2B .0258 Basinwide Stormwater Requirements
15A NCAC 2B .0259 Protection and Maintenance of Existing Riparian Buffers
15A NCAC 2B .0260 Mitigation Program for Protection and Maintenance of Existing Riparian Buffers
15A NCAC 2B .0261 Delegation of Authority for the Protection and Maintenance of Existing Riparian Buffers
Gov't
Authorization
Square Feet Acres Sq. Ft Acres Sq. Ft Acres
Totals
Banished Bull Buffer and Nutrient Offset Bank (HUC 03020201)
Buffer Restoration Credit Ledger
DWR Project #2020-047
Date Last Updated
Credits Released / Available to
Bank
Credits Debited/ Sold From
Bank Buffer Credit BalanceSale/Release
Date
Purchase or Credit
Release Project Name
Attachment B. Sample of Buffer and Nutrient Offset Ledgers
Gov't
Authorization
lbs of Nitrogen Acres lbs of Nitrogen Acres lbs of Nitrogen Acres
Totals
Sale/Release
Date
Purchase or Credit
Release Project Name
Credits Released / Available to
Bank
Credits Debited/ Sold From
Bank Buffer Credit Balance
Banished Bull Buffer and Nutrient Offset Bank (HUC 03020201)
Nitrogen Credit Ledger
DWR Project #2020-047
Date Last Updated