20160979 Ver 2_Credit Release Task 2_20200408

April 8, 2020

Brad Breslow DWR Project #: 2016-0979v2
EBX Neuse 1, LLC Johnston County
302 Jefferson Street, Suite 110
Raleigh, NC 27605

Re: RES Poplar Creek Buffer & Nutrient Offset Umbrella Mitigation Banking Instrument
(UMBI)
Poplar Creek Bank Parcel Credit Release – Task 2

Dear Mr. Breslow:

On June 25, 2019, the Division of Water Resources (DWR) received documentation from EBX
Neuse 1, LLC (EBX) that the Poplar Creek site (Site) had been constructed in its entirety and
monitoring plots had been installed. On July 9, 2019, with assistance from Ryan Medric and others
with EBX, DWR inspected the site. It was determined that the Site would require substantial in -
stream work and repair prior to the stream restoration work being “complete” as determined by the
IRT. Riparian areas that were planted were likely to be impacted by any repair work deemed
necessary. With exception of the stream issues, DWR confirmed that all monitoring plots were
installed, conservation easement placards had been installed along the entire easement boundary and
cattle exclusion fencing was installed where required.

On March 26, 2020 and April 7, 2020, the DWR received As-Built Reports along with drone video
footage of the Site that confirmed the subject site had finished all required stream restoration work
and repairs, and that the riparian areas impacted were stabilized, reseeded and re -planted. Due to the
Governor’s issuance of the Stay-at-Home order, DWR is unable to perform a site visit to adequately
assess onsite conditions of the vegetation along YB-2a. Therefore, DWR will require EBX install
four (4) random vegetation transects along YB-2a and record the following parameters in the Year 1
Monitoring Report: stem density, species and height. The area of the transects must be comparable
to the area of the vegetation plots. Lastly, the current performance bond (#9298628) expired October
25, 2019.

In accordance with the UMBI, signed on January 16, 2019, the following Project Milestones have
been met and the corresponding credits shall be released:

Task/Milestones 1Credit

2) Mitigation Site Earthwork, Planting and Installation of 20%
Monitoring Devices Completed

1Credit release percentages exclude the areas within the pond footprints.

Poplar Creek Site
EBX
April 8, 2020

Page 2 of 2

By copy of this correspondence, DWR confirms that you have satisfied the above requirements for
the above-referenced tract and 20% of your Nitrogen nutrient offset credits
(0.20 x 1,432 lb-N = 286.40 lb-N) are now available to sell. Additionally, 20% of your Neuse buffer
Restoration credits (0.20 x 9,435.70 ft2 = 1,887.14 ft2) and 20% of your Neuse buffer Preservation
credits (0.20 x 8,148.87 ft2 = 1,629.77 ft2) are now available to sell. Lastly, 20% of your Neuse
buffer Enhancement credits from cattle exclusion (0.20 x 77,612.89 ft2 = 15,522.58 ft2) are now
available to sell. Neuse buffer Preservation and Enhancement credits should be depicted on the same
credit ledger for this Site.

Please note that nutrient offset credits generated at this site must be used for impacts in HUC
03020201 of the Neuse River Basin excluding the Falls Lake Watershed pursuant to 15A NCAC
02B .0240. Additionally, the riparian buffer credits must be used for impacts in the Neuse
River Basin in accordance with guidelines in the Consolidated Buffer Mitigation Rule, 15A
NCAC 02B .0295, which became effective on November 1, 2015.

Please feel free to call [phone] if you have any questions regarding this correspondence.

Sincerely,

Katie Merritt
401 & Buffer Permitting Branch

cc:File Copy (DWR)
Caitlan Parker (EBX) – via electronic mail