20190157 Ver 3_Draft MBI_20200515

ID#* 20190157 Version* 1
Select Reviewer:*
Katie Merritt
Initial Review Completed Date 05/18/2020
Mitigation Project Submittal - 5/15/2020
Is this a Prospectus, Technical Proposal or a New Site?* C Yes C No
Type of Mitigation Project:*
r Stream r Wetlands W Buffer W Nutrient Offset
(Select all that apply)
Project Contact Information
Company/Owner:* Wildlands Engineering, Inc.
Contact Name:*
Andrea Eckardt
Project Information
Project Type: Q DMS C Mitigation Bank
Project Name: Perry Hill II
County: Orange
Document Information
Email Address:*
[e-mail]
Mitigation Document Type:*
Mitigation Bank Instrument
File Upload: PerryHill II Draft MBI 5.15.2020.pdf 13.07MB
Rease upload only one R7Fcf the corrplete file that needs to be subrritted...
Signature
Print Name:* Andrea Eckardt
Signature: *

1

AGREEMENT TO ESTABLISH THE PERRY HILL II MITIGATION BANKING INSTRUMENT IN THE UPPER 
NEUSE RIVER BASIN NUTRIENT OFFSET AND RIPARIAN BUFFER 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 BANK PARCEL ...................................................................................... 3 
V. BANK PARCEL DEVELOPMENT PACKAGE .............................................................................. 5 
VI. POST CONSTRUCTION DOCUMENTATION ............................................................................ 6 
VII. CALCULATION OF MITIGATION CREDITS .............................................................................. 9 
VIII. CREDIT RELEASE SCHEDULE ................................................................................................ 11 
IX. PROCEDURE FOR DEBITING AND CREDITING ..................................................................... 12 
X. BANK PARCEL CLOSURE ...................................................................................................... 13 
XI. GENERAL PROVISIONS ........................................................................................................ 14 

ATTACHMENTS 
A ‐ Division of Water Resources Authority Document 
B ‐ NCDWR – Methodology and Calculations for Nutrient Reductions on the Bank Parcel 
C ‐ Rule Text 15A NCAC 02B .0295 (Effective November 1, 2015) 
D ‐ Buffer Ledger Template  
E ‐ Nutrient Offset Ledger Template 

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I. PREAMBLE 

This Mitigation Banking Instrument (“Instrument”) regarding the establishment, use, operation, and 
maintenance of the Perry Hill II Nutrient Offset and Buffer Mitigation Bank Parcel (“Bank Parcel”) to 
provide Neuse Riparian Buffer mitigation credits (“Riparian Buffer Credits”) and Falls Lake Water 
Supply Nutrient Strategy nutrient load reduction credit (“Nutrient Offset Credits”) is made and 
entered into by and among Wildlands Holdings V, 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 .0703 and the Consolidated Buffer Mitigation Rule 
15A NCAC 02B .0295, which became effective on April 1, 2020 and November 1, 2015 respectively, 
see reference. 

The purpose of the Bank is: 

A. To restore riparian vegetation adjacent to streams and/or ephemeral channels with the intent 
to improve water quality, reduce nutrient loads, enhancement flood attenuation and restore 
wildlife habitat along mitigated streams and/or ephemeral channels within the Falls Lake 
Watershed of the Neuse River Basin (8‐digit HUC 03020201). 

B. To convert agricultural land uses within riparian areas adjacent to streams and/or ephemeral 
channels into a dense and diverse hardwood vegetated state with the intent to significantly 
reduce nutrient loadings associated with agricultural practices into streams and ephemeral 
channels.   

C. To provide mitigation and sell any resulting Riparian Buffer Credits and/or Nutrient Offset Credits 
to third parties in the Falls Watershed of the Neuse River Basin for development (both existing 
and proposed), or to offset NPDES‐permitted wastewater nutrient sources, 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 GSA for this Bank Parcel is limited to the Falls Lake Watershed of the Neuse River Basin in the 
State of North Carolina, United States Geological Survey (“USGS”) 8‐digit Hydrologic Unit Code 
(“HUC”) 03020201.  

C. Sale or transfer of Riparian Buffer Credits shall be limited to the 8‐digit HUC 03020201 unless 
otherwise authorized by the DWR or delegated local government in accordance with 15A NCAC 
02B .0295.   

D. 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).  

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E. The Perry Hill II Bank Parcel is comprised of land in Orange County, NC, lying adjacent to a NC 
Division of Mitigation Services Full‐Delivery Mitigation Site (Perry Hill Full Delivery Mitigation Site, 
DMS ID# 100093) and is currently used for cattle pasture, row crops, and forest land.  The project 
is located at 36° 06' 25.81'' N 79° 07' 46.66'' W. 

F. Unnamed tributaries to the Eno River are the receiving bodies of water for stormwater runoff 
from this parcel.  The Neuse River is classified by DWR as Nutrient Sensitive Waters (NSW) and 
Class C Waters. 

III. AUTHORITIES 

A. The Bank will be used to provide Riparian Buffer Credit and/or 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 generated from the Bank Parcel approved under this Instrument, 
shall be consistent with approved 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 State statutes and rules for the Falls Lake Water Supply Nutrient Management Strategy  that 
are in place at the time a complete BPDP is submitted to DWR. 

IV. ESTABLISHMENT OF BANK PARCEL 

A. In accordance with 15A NCAC 02B .0295 and 15A NCAC 02B .0703, DWR has provided a “Site 
Viability Letter” for the Bank Parcel proposed under this Instrument.  The Site Viability Letter was 
written for the proposed DMS Full Delivery Project (Perry Hill Full Delivery Mitigation Site, DMS 
ID# 100093) and will be applied, under this instrument, to the Perry Hill II Bank Parcel with the 
understanding that the full delivery project will be constructed and a permanent conservation 
easement will be placed on the mitigation project.  The Site Viability Letteris not an approval of 
the site to generate Riparian Buffer Credits and Nutrient Offset Credits, but is a preliminary review 
of the Bank Parcel that details and confirms existing land use conditions, defines the riparian sites 
(Enhancement or Restoration), and identifies features (streams, ditches, ponds, etc.) that meet 
general criteria to be suitable to generate mitigation credits. Table 1.0 below outlines when a Site 
Viability Letter was issued by DWR for the mitigation site: 

Table 1.0 – Site Viability Letter Details 
Bank Parcel NC DWR Site 
Evaluation Viability Letter Received Viability Letter 
Expiration Date 
Perry Hill February 25, 2019 April 16, 2019 April 16, 2021 
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B. A valid Site Viability Letter is required prior to submittal of each BPDP.  Site Viability Letters will 
either expire on the dates listed in the table above or upon submittal of an individual As‐Built 
Report to the DWR, whichever comes first.  If a Site Viability Letter expires prior to submittal of a 
complete BPDP as described in Section V to DWR, then the Sponsor must submit a formal request 
to DWR for a new Site Viability Letter for that Bank Parcel. 

C. The Bank Parcels 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 
individual Bank Parcel for mitigation purposes or the sale or transfer of any associated credits. 
The contents of each BPDP are provided in Section V. 

D. The BPDP will be placed on public notice and made available for public commenting for 15 
calendar days. 

E. Some of the Riparian Buffer Credits on this Bank Parcel will be generated along restored and 
enhanced stream channels that are proposed for stream mitigation.  All activities conducted 
within riparian buffers and adjacent riparian areas for purposes of generating Riparian Buffer 
Credits and Nutrient Offset Credits will be conducted in concurrence with or after the stream 
mitigation activities proposed in the Perry Hill Full Delivery Mitigation Plan (DMS# 100093) and 
not before.  Riparian Buffer Credit may be achieved through restoration of DWR riparian buffers 
as they are defined in 15A NCAC 02B .0233, and other riparian areas as allowed per 15A NCAC 
02B .0295 (n) and (o) on the Bank Parcel.  Riparian buffer credits are only attainable if the width 
of the restoration site is within at least 20 feet from tops of banks along streams and 30 feet 
from tops of banks along viable ditches. Riparian buffer credits are attainable to a maximum 
of 200 feet from tops of banks of streams and 50 feet from the tops of banks of viable ditches. 

F. The Bank Parcel is intended to provide Neuse River Basin Buffer Mitigation as follows: 

1. Planting hardwood trees on a Restoration Site as defined in 15A NCAC 02B .0295 (b) 
adjacent to mitigated streams.  
2. Planting hardwood trees on a Restoration Site as defined in 15A NCAC 02B 0295 (b) 
adjacent to ephemeral channels as allowed in 15 A NCAC 02B .0295 (o). 
3. Enhancing riparian areas that are being grazed by cattle by installing fencing to 
permanently excluding cattle from the streams and their associated riparian areas as 
allowed in 15A NCA 02B .0295(o)(6) or removing them from the Parcel.  
4. Diffused flow will be maintained onsite to the maximum extent practicable. 

G. Nutrient Offset Credit may be achieved on the Bank Parcel through restoration of the riparian 
areas, where agriculture is the predominant land use.  The width of the restoration area begins at 
the most landward limit of the top of bank or the rooted herbaceous vegetation and extends 
landward a minimum of 50 feet and a maximum of 200 feet on all sides of the surface waters. A 
conservation easement will be secured to include the tops of all channel banks and will extend 
out a maximum of 200 feet from the surface waters. 

H. The Bank Parcel is expected to provide Nutrient Offset Credits in accordance with 15A NCAC 02B 
.0240 and are expected to provide Nutrient Offset Credit as follows:  
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1. Converting agricultural land uses within riparian areas to non‐agricultural land uses by 
placing a perpetual 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 and ephemeral channels where agriculture has been 
determined by DWR to be the predominant land us. 

V. BANK PARCEL DEVELOPMENT PACKAGE 

A. The 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 figure for each mitigation 
type. 

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 and/or enhancement activities or proposed construction within the riparian 
buffers and other riparian areas on the Bank Parcel to produce Riparian Buffer Credit and/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. 

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 record permanent conservation easements 
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. 

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G. The conservation easement for the Bank Parcel will be located adjacent to the Perry Hill Full 
Delivery Conservation Easement.  The Full Delivery’s easement will include the mitigated streams 
and will extend at minimum 20 feet from the top of bank of the project streams.  

H. 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.  

I. 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. 

J. In the event 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 

K. Following approval of the BPDP for the Bank Parcel, the Sponsor shall provide 
Performance/Maintenance Bonds from a surety company that is rated no less than an “A‐“ as 
rated by A.M. Best, to construct the sites according to the approved BPDPs.  It is the Sponsor’s 
responsibility to confirm that the surety company is rated no less than an “A‐” with each annual 
bond renewal.   

L. The amount of each Performance Bond shall be 100% of the estimated cost for implementation 
of the riparian restoration and other related activities of the Bank Parcel as described in the 
approved BPDP. No bond shall be less than $150,000.00 to cover construction costs. 

M. Alternatively, in lieu of posting a Performance Bond, the Sponsor may elect to construct the 
project prior to the first credit release. 

N. Once DWR has released all credits for completion of all the items listed below, then the Bank 
Sponsor will be released from its performance obligations under the performance bond required 
in Item J and K 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 

O. To comply with this section, DWR must be the Obligee on all performance bonds. 
VI. POST CONSTRUCTION DOCUMENTATION 
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As‐Built Report  

A. The Sponsor agrees to perform all necessary work, in accordance with the provisions of this 
Instrument and corresponding BPDP, to establish, maintain, and monitor Neuse River Basin 
Riparian Buffers or other riparian areas until Items B (1) and (2) of Section X have been satisfied. 

B. The Sponsor will submit an as‐built plan and report to the DWR for the Bank Parcel separately 
within 30 calendar days after completing the establishment of the riparian buffer mitigation and 
nutrient offset areas. Each As‐Built report will describe any deviation from the approved BPDP 
and will document all the following: 

1. Buffer restoration and enhancement planting details, confirmation of fence installation, 
invasive species control, monitoring device locations, vegetation plot locations, and photo 
point locations.  

2. Provide confirmation that the construction of all stream mitigation activities associated 
with the Perry Hill Full Delivery project have been completed. 

3. Boundary Survey of the conservation easement area, signed and sealed by a licensed 
surveyor, including an inventory of the final mitigation areas for riparian buffer mitigation 
and nutrient offset credits in both square feet and acres. 

4. As‐built map of the mitigation areas showing where riparian restoration, enhancement 
and preservation were performed and any deviations to the Bank Parcel from what was 
approved in the BPDP. 

5. Aerial map of the mitigation area that was included in the approved BPDP. 

Financial Assurance 

C. After completion of the riparian restoration and mitigation activities on the Bank Parcel, 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 and As‐Built 
Report. 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 the surety company is still rated no less 
than an “A‐“ with each annual bond renewals. 

D.  A Performance/Maintenance Bond shall be secured each year for a minimum of five years, and 
until DWR has released all Riparian Buffer Credits and Nutrient Offset Credits mitigation credits 
to the Bank Sponsor. Upon DWR approval, 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 initially. 

E. For the Bank Parcel, once DWR has released 100% of all credits for completion of all Bank Parcel 
milestones described in Table 2 of Section VIII, the Bank Sponsor can be released from its 
performance obligations under the performance bond required in C and D in this section. 

F. To comply with this section, DWR must be the Obligee on all performance bonds. 
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Monitoring and Maintenance Reports 

G. 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 

H. Performance Standards for Vegetation: Native hardwood trees or native hardwood tree and shrub 
species should be planted at a density sufficient to provide 260 stems per acre after five years. A 
minimum of four (4) native hardwood trees or four (4) native hardwood tree and shrub species 
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. 

I. A "stem" means a woody seedling, sapling, shrub or tree, no less than 10 centimeters in height. 

J. 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 diffused flow, managing 
invasive species, and pest control will be included in the BPDP. 

K. Monitoring Reports for Riparian Buffer Credit or Nutrient Offset Credit: Reporting criteria of the 
vegetation 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 with supporting photos summarizing the condition of the Bank Parcel 
along with any maintenance or remediation performed that year; and 
3. A map, survey, or other figures showing locations of sampling plots, permanent photo 
points, and location of transects, Etc.; and 
4. Monitoring data, including specific vegetation counts showing that the trees or tree and 
shrub species planted are meeting performance standards and updated photographs; and 
5. A copy of the most recent Bank credit/debit lodgers upon request; and 
6. Corresponding verification letters from designated local governments upon request; and 
7. Corresponding Mitigation Transfer Certificates upon request; and 
8. Proof of performance bond renewal to cover the next monitoring year (when applicable).  

Contingency Plans/Remedial Actions 

L. In the event the Bank Parcel fails to achieve the performance criteria described in this Instrument 
and in the approved BPDP, the Bank Sponsor shall develop necessary contingency plans in 
coordination with the DWR and implement appropriate remedial actions for the Bank Parcels and 
9

the Bank. Depending on the degree of remedial actions required, the DWR may modify the 
monitoring period and credit release schedule. 

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), 
and defined n 15A NCAC 02B .0295 (b) that is 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 enhancement on the Bank Parcel, as described in 15A NCAC 02B .0295(o)(6) can 
only be used for 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. The square footage of Nutrient Offset Credits on the Bank Parcel will be determined by applying 
the applicable ratio as provided in 15A NCAC 02B .0295(m) for a Restoration.  All riparian areas 
proposed for Nutrient Offset Credits must be a minimum of 50 feet from the top of the stream or 
ephemeral channel on land noted in a Site Viability Letter as agriculture. 

F. Nutrient Offset Credits cannot be achieved through the preservation activities performed on this 
Bank Parcel.   

G. Nutrient Offset Credits cannot be achieved through enhancement activities performed on this 
Bank Parcel under 15A NCAC 2B .0295(o)(6). 

H. Nutrient Abatement of Restored Riparian Area/Buffers on agricultural land: The Sponsor and DWR 
agree to the following: 

1. The pounds of nitrogen offset per acre of restored riparian areas/buffers on agricultural 
land shall be 2,273.02 pounds per acre. 
2. The pounds of phosphorus offset per acre of restored riparian areas/buffers on 
agricultural land shall be 146.4 pounds per acre. 

I. The Sponsor and DWR agree that the methodology and calculations for determining nitrogen 
reduction, associated with restoration and enhancement of riparian areas on this Bank Parcel 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 each Bank Parcel.  The approved method and calculations for determining nutrient 
reductions associated with the riparian restoration on this Bank Parcel is provided in further detail 
in Attachment B. 
10

This space left blank intentionally, do not add text to this space. 

11

VIII. CREDIT RELEASE SCHEDULE 
A. Upon submittal of all appropriate documentation by the Sponsor, and subsequent approval by 
DWR, it is agreed that the Riparian Buffer Credits and Nutrient Offset Credits associated with the 
Bank Parcel will become available for sale to a third party in accordance with the Credit Release 
Schedule below in Table 2.0 .   

Table 2.0 ‐ Credit Release Schedule for Riparian Buffer and Nutrient Offset Credits  
Task Project Milestone % Credit Available 
for Sale 
1 
Instrument and BPDP Approved by DWR, Full Delivery 
Mitigation Plan Approved by DWR, Conservation Easements 
Recorded* and Financial Assurance Posted 
20 
2 
Mitigation Site Earthwork, Planting and Installation of 
Monitoring Devices Completed for both the Perry Hill Full‐
Delivery site (DMS ID#100093) and the Bank Parcel. 
20 
3 Monitoring Financial Assurance Posted and Approval of As‐
Built Report 10 
4 Monitoring Report #1: Approved by the DWR** & financial 
assurance renewed 10 
5 Monitoring Report #2: Approved by the DWR** & financial 
assurance renewed 10 
6 Monitoring Report #3: Approved by the DWR** & 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 the conservation
easement has been assigned to an approved land trust or
stewardship 

8 Monitoring Report #4: Approved by the DWR** & 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 performance standards 
contained within the approved BPDP and corresponding Full Delivery Stream Mitigation Plan 

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. 

C. DWR may consider a Credit Release Schedule for a Bank Parcel based on the extent of change 
between current onsite conditions and proposed post construction conditions. 

12

IX. PROCEDURE FOR DEBITING AND CREDITING  

Credit Ledgers 

A. The Bank Sponsor shall maintain one credit ledger for each mitigation type for the Bank Parcel 
under this Instrument, unless otherwise instructed by DWR.  Credit ledgers shall provide the 
accounting for Riparian Buffer Credits in square feet and acres and Nutrient Offset Credits in 
pounds and square feet. 

B. Each credit ledger shall be submitted on a separate 8 ½ in. x 11in. spreadsheet with legible font 
style and font size. All ledgers shall be submitted using the templates provided in Attachment D 
and E 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 will be used to provide buffer mitigation for 
authorized riparian buffer impacts within the 03020201 HUC of the Neuse River Basin according 
to 15A NCAC 02B .0295 (g).   

E. Nutrient Offset Credits generated on this Bank Parcel can 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. 

D. Available Riparian Buffer Credits (credits that have been released by DWR but not sold by the 
Sponsor) that are generated from riparian restoration on agricultural land and meet criteria for 
nutrient offset credits as outlined in Section VII of this Instrument, the Site Viability Letter and the 
corresponding BPDP can be converted and transferred from Riparian Buffer Credits into Nutrient 
Offset Credits upon written approval from DWR.  Once a credit has been converted to another 
credit type, the transaction is permanent, and the credit cannot be converted again. 

E. Available Nutrient Offset Credits (credits that have been released by DWR but not sold by the 
Sponsor) that are generated from riparian restoration within 0‐100’ from top of banks and meet 
criteria for riparian buffer credits as outlined in Section VII of this Instrument, the Site Viability 
Letter, 15A NCAC 02B .0295 and the corresponding BPDP can be converted from Nutrient Offset 
Credits to Riparian Buffer Credits upon written approval from DWR.  Once a credit has been 
converted to another credit type, the transaction is permanent, and the credit cannot be 
converted again.  

F. The Bank Sponsor shall obtain written verification of nutrient offset need from a designated local 
government in the Falls Watershed, or from DWR through an approved NPDES permit for 
wastewater nutrient sources, prior to debiting Nutrient Offset Credits from the Bank Parcel.   

G. The Bank Sponsor shall obtain verification of riparian buffer mitigation required from a 
delegated/designated local government in the 03020201 Neuse River Basin or DWR prior to 
debiting Riparian Buffer Credits from the Bank Parcel.   

13

H. All credit and debit transactions for the 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 the Bank Parcel by the 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. 

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; 

1. Bank Details: (1) Sponsor Name, (2) Bank Parcel name as it appears in this Instrument and, 
(3) DWR project number for the BPDP as it appears in Table 1.0.  

2. Credit Details: (1) date of receipt, (2) identify if full or partial payment, and (3‐ when 
applicable) amount of nitrogen and/or phosphorus Nutrient Offset Credits purchased in 
pounds and confirmation from the designated local governments of the amount required, 
and (4‐when applicable) the amount of Riparian Buffer Credits purchased in square feet 
and the confirmation from DWR or the local government of the amount required. 

3. Permitted Project Details: (1) project name and project number as it appears on DWR or 
local government permits and/or certifications, (2) 8‐digit HUC, (3) river basin, (4) nutrient 
strategy applicable to the permitted project with impacts, (5 – when applicable) 
designated local government requiring Nutrient Offset Credits, and/or (6) DWR 
authorization/ID number or delegated local government requiring Riparian Butter Credits 
for this project.  

J. If the DWR determines the Bank is operating at a deficit (e.g. the Sponsor is selling 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 its 
responsibilities to the Bank Parcel and there are no Riparian Buffer Credits or Nutrient Offset 
Credits left to sell.  

B. Bank Parcel Closure shall commence only after all the following events have occurred;  

1. Transfer or assign the conservation easement and all its interests, in perpetuity, to a land 
trust or stewardship program as described in Section V of this instrument. 

2. All five years of monitoring completed and all monitoring reports submitted and approved 
by DWR. 
14

3. All credits have been released and debited and updated ledgers showing zero credit 
balances have been submitted and approved by DWR. 

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, or 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, including the USACE if it is applicable to the amendment. 

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 in accordance with 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 in accordance with 
the credit release schedule in Section VIII, 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: 
1. Site visits, 
2. Issuance of Site Viability Letters, 
3. BPDP review and approval of items listed in Section V of this Instrument,  
4. As‐Built report review and approval of items listed in Section VI of this Instrument,  
5. Monitoring Report review and approval of items listen in Section VI of this Instrument,  
6. Credit Ledger review and approval of items listen in Section IX of this Instrument,  
7. Certificate review of items listed in Section IX of this Instrument and cross analysis to 
credit ledgers and,  
8. 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.  

15

G. Validity of this Instrument: This Instrument will become valid on the date of the last party’s 
signature.  

H. Specific Language of this 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 communication 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, received via email with a delivery receipt requested, 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.  

If to Bank Sponsor: 1430 South Mint Street, Suite 104 
  Charlotte, NC  28203 
  Attn: Shawn Wilkerson 
  [e-mail] 

If to DWR: NC Division of Water Resources – 401 & Buffer Permitting Branch 
Attn:  Nutrient Offset Banking Coordinator 
  1617 Mail Service Center 
  Raleigh, NC  27699‐1617 

K. Applicable Law: This Agreement shall be construed under the laws of the State of North Carolina. 

16

Wildlands Holdings V, LLC 

By: Shawn Wilkerson (Print) 

(Signature) 
Title: 

Date: 

NORTH CAROLINA DEPARTMENT OF ENVIRONMENTAL QUALITY‐DIVISION OF WATER RESOURCES 

By:  (Print) 

(Signature) 
Title: 

Date: 

Nutrient Offset Program & Buffer Mitigation Program
Authorities for MBI
Updated
10/28/2019
ATTACHMENT A
Authorities pertaining to the Mitigation Banking Instrument All Basins
General Statutes:
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. §143-215.8B Basinwide Water Quality Management Plans
Session Laws
S.L. 2015-246
S.L. 2015-149
S.L. 2014-90
S.L. 2014-120
S.L. 2013-413
S.L. 2013-121
S.L. 2013-265
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 .0295 Mitigation Program Requirements for Protection and Maintenance of Riparian Buffers
Neuse River Basin Buffer and Neuse Nutrient Strategy
Session Laws
S.L. 2019-86
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 .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 .0703 NUTRIENT OFFSET CREDIT TRADING
(a) PURPOSE. The purpose of this Rule is to establish standards and procedures applicable to providers for
approval of nutrient reduction projects and associated nutrient offset credits that will be transferred to persons or
entities subject to nutrient rules of this Subchapter. Nutrient offset credit is distinct from nutrient accounting for
direct compliance with individual nutrient strategy rules, which is not governed by this Rule. Nutrient accounting
includes joint compliance by multiple local governments as authorized in individual nutrient strategy rules. Nutrient
offset credits represent a compliance option to the extent allo wed by nutrient rules of this Subchapter, including:
(1) the Neuse Nutrient Strategy as set forth in Rule .0710 of this Section;
(2) the Tar-Pamlico Nutrient Strategy as set forth in Rule .0730 of this Section;
(3) the Jordan Lake Nutrient Strategy as set forth in Rule .0262 of this Subchapter, including to the
extent that the requirements of this Rule related to the nutrient offset credits are incorporated by
the Jordan Lake rules; and
(4) the Falls Lake Nutrient Strategy as set forth in Rule .0275 of this Subchapter, including to the
extent that the requirements of this Rule related to the nutrient offset credits are incorporated by
the Falls Lake rules.
(b) GEOGRAPHIC RESTRICTIONS. Nutrient offset credits may be used to satisfy regulatory obligations onl y
when generated by a nutrient reduction project within an allowable geographic area identified in G.S. 143 -214.26, as
designated by the U.S. Geological Survey, with the following additional restrictions:
(1) Nutrient offset credits may be used to satisfy regulatory obligations incurred in the upper Falls
watershed only if they were generated by a nutrient reduction project located within the upper
Falls watershed, as this geographic area is described in 15A NCAC 02B .0276.
(2) Nutrient offset credits may b e used to satisfy regulatory obligations incurred in the lower Falls
watershed only if they were generated by a nutrient reduction project located within the Falls Lake
watershed, as these geographic areas are described in 15A NCAC 02B .0276.
(3) Nutrient offset credits may be used to satisfy regulatory obligations incurred in the Jordan Lake
watershed only if they were generated by a nutrient reduction project in the same subwatershed of
the Jordan Lake watershed, as these geographic areas are described in 15A NCAC 02B .0262.
(4) Nutrient offset credits may be used to satisfy regulatory obligations incurred in the Neuse 01 8 -
digit cataloguing unit, as designated by the U.S. Geological Survey, outside of the Falls Lake
watershed only if they were generated b y a nutrient reduction project located outside of the Falls
Lake watershed.
(5) Nutrient offset credits generated by nutrient reduction projects for compliance with an estuarine
nutrient strategy shall be generated in an area that is within or drains to:
(A) surface waters identified for restoration under the applicable nutrient -related TMDL or
nutrient strategy; or
(B) surface waters classified as SA, SB, or SC that fails to meet the chlorophyll -a water
quality standard in a subsequent integrated report.
(c) NUTRIENT OFFSET CREDIT APPROVAL STANDARD. Providers shall demonstrate that a nutrient
reduction project is designed, constructed, implemented, and sustained in a manner that, according to the best
available scientific evidence, studies, and principles, will generate the estimated nutrient load reduction for the
duration of time for which credits are approved. Nutrient offset credits shall be generated and transferred in
accordance with G.S. 143-214.26.
(d) QUANTIFYING NUTRIENT OFFSET CREDITS. The quantity of nutrient offset credits eligible to be
generated by a nutrient reduction project shall be determined according to the following provisions:
(1) Nutrient reduction credit sought on developed lands shall be calculated in relation to load
reductions achieved relative to the project site's current loading condition, as determined by the
provider and verified by the Division;
(2) Nutrient load reductions shall be site-specific estimates of decreases in annual mass load of
nitrogen or phosphorus to the nearest receiving surface water feature. Such estimates shall be
supported by the weight of evidence from available, current and applicable research, may involve
water quality modeling or engineering formulas and calculations, and shall reflect as closely as
possible project design specifications.
(3) Unless specifically excepted in Rule, reductions shall not include those already implemented to
satisfy other requirements under the same nutrient strategy; other local, State or federal
requirements; or those resulting from State or federal compensatory mitigation requirements.
Specifically, a nutrient reduction project shall not generate nutrient offset credits and buffer or
ATTACHMENT B
wetland mitigation credits in spatially overlapping areas. However, restored forest bu ffer areas
associated with stream mitigation projects may generate both stream and nutrient offset credits in
spatially overlapping areas within 50 feet from the top of the stream bank.
(4) Stream, buffer, or wetland mitigation credit that has not been use d to satisfy a mitigation
requirement may be converted into nutrient offset credit if the credit -generating project or portion
thereof complies with this Rule.
(5) A nutrient reduction project may generate both nitrogen and phosphorus offset credits in the same
area.
(6) A nutrient reduction project may be designed to generate permanent nutrient offset credit or term
nutrient offset credit and shall specify which, or both, in the project plan. Permanent nutrient
reduction credits and term nutrient reduction credits shall be maintained separately, even if
associated with the same nutrient offset project.
(7) Permanent nutrient offset credits may be utilized for temporary compliance purposes. If so, for
each pound of annual term compliance credit received, 1/30th of one pound of permanent nutrient
offset credit shall be utilized and retired by removal from the applicable ledger.
(8) Nutrient offset credits that were approved prior to the adoption of this Rule may make application
to be reclassified. The Division shall approve the application associated with any nutrient offset
project to reclassify credits as permanent that meet the requirements for permanent credits at the
time of the application to be reclassified. Other nutrient offset credits that were appr oved prior to
the adoption of this Rule or that were conditionally approved pursuant to a mitigation banking
instrument or other agreement with DEQ prior to the adoption of this Rule, shall be considered
term credits and may be transferred between term and permanent ledgers at a ratio of 30 years of
term nutrient offset credit to one permanent nutrient offset credit.
(9) Term nutrient offset credits shall be associated with the calendar year or years in which the
associated nutrient load reductions are generated.
(e) PROJECT APPROVAL STANDARDS. Providers shall comply with the following requirements to request
approval from the Division to implement a nutrient reduction project for the purpose of generating nutrient offset
credits.
(1) NUTRIENT OFFSET BANKING INSTRUMENT. Providers seeking approval of a nutrient offset
bank shall submit their draft nutrient offset banking instrument to the Division prior to seeking
approval of project plans. A nutrient offset banking instrument shall provide legal and financia l
assurances that a provider will implement, maintain, and sustain nutrient reduction projects as
proposed in subsequent project plans and associated nutrient reduction practice design
specifications.
(2) PROJECT PLAN REQUIREMENTS. Prior to initiating a nutrient reduction project, providers
shall submit a project plan proposal to the Division for review and approval that includes the
following elements:
(A) A site location and site boundaries of the proposed project.
(B) The geographic area eligible to be served by nutrient offset credits in accordance with
Paragraph (b) of this Rule or in compliance with in-lieu fee nutrient offset requirements
applicable at the time an in-lieu fee payment was accepted.
(C) Documentation of the conditions of the site at the time of the submittal of the project
plan.
(D) Documentation of the condition of the site during the baseline period of the applicable
nutrient strategy, unless excepted by Subparagraph (d)(1) of this Paragraph. The Division
may accept more recent documentation if it determines such documentation establishes
the probable loading condition of the site during the baseline period.
(E) A description of the proposed project that supports compliance with the standard in
Paragraph (c) of this Rule. Projects conforming to minimum design criteria for
stormwater control measures in 15A NCAC 02H .1050 through .1062 shall be deemed as
meeting this requirement. Design criteria for stormwater control measure variants and
additional nutrient reduction practices established in the Division's Catalog of Nutrient
Reduction Practices also meet this requirement.
(F) Nutrient credit calculations determined in conformance with Paragraph (d) of this Rule.
(G) Identification of the property owner and parties responsible for obtaini ng all permits and
other authorizations needed to:
ATTACHMENT B
(i) establish the proposed project;
(ii) construct and ensure initial performance of the project;
(iii) report on and successfully complete the project by completing all crediting
milestones;
(iv) hold and enforce all easement or other protection mechanisms; and
(v) ensure maintenance of the project for its credited duration.
(H) A description of how the project will be implemented, which shall include a timeline and
a commitment to provide an as-built report upon the full project construction or
installation.
(I) A description of how the project will be maintained and monitored after it has been
installed and for its duration.
(J) A description of how the project will be sustained for its credited life, inc luding a
commitment to repair and renovate it as needed to maintain its performance, to keep
records of all such operation, maintenance, monitoring, repair and renovation, and to
notify the Division of any significant performance remediation needs and plan s.
(K) Identification of federal or State grant funding contributing to project implementation.
(3) FINANCIAL ASSURANCES. Providers seeking approval of a nutrient offset bank shall provide
the financial assurance that a project plan will be constructed as proposed. The financial assurance
shall be in the form of a completion bond, credit insurance, letter of credit, escrow, or other
vehicle acceptable to the Division in accordance with this Subparagraph, payable to, or for the
benefit of, the Division, to ensure the involved property is secured in fee title or by easement and
that planting or construction, monitoring or maintenance are completed as necessary to meet the
requirements of the project plan.
(4) PROJECT PLAN APPROVAL. The Division shall approve the provider's project plan proposal
after verifying the provider's compliance with Subparagraphs (1), (2) and (3) of this Paragraph and
completing an onsite review to verify that preconstruction site conditions are suitable to generate
the credits proposed by the project plan. However, the Division may partially or fully waive these
requirements for term practices or projects if it determines that the burden of compliance is
disproportionate to the value of the credits being generated and alternative means are used to
satisfy the basic credit approval standard set forth in Paragraph (c) of this Rule.
(f) RELEASE AND ACCOUNTING FOR NUTRIENT OFFSET CREDITS. The Division shall release nutrient
offset credits from an approved project in the following manner:
(1) The Division shall release credits to providers upon confirmation that project -specific milestones
reflected in the project plan's credit release schedule have been met. Project-specific milestones
for permanent nutrient offset credits shall conform to the following requirements:
(A) Credits shall not be released until the property is secured in fee title or by easement and
financial assurance is posted for planting or construction of the project.
(B) No more than 50 percent of the credits shall be released for a project until financial
assurance is provided for monitoring and maintenance activities lasting until project
completion.
(C) No more than 80 percent of the credits shall be released for a project until the provider
complies with the requirements of Paragraph (g).
(2) Once credits are released for a nutrient offset bank and until bank closure, nutrient offset bank
providers shall provide a credit/debit ledger to the Division at intervals no less frequently than
quarterly.
(3) The Division shall not release any credits for a project if that project is financed in whole or in part
by State grant funding or federal grant funding.
(g) MAINTAINING PERMANENT NUTRIENT OFFSET CREDITS. All permanent nutrient offset projects shall
comply with the following requirements:
(1) A provider shall transfer responsibility for oversight of a completed permanent project to a
perpetual steward in accordance with this Paragraph and the approved project plan. A perpetual
steward may also transfer responsibility to another perpetual steward in accordance with the terms
of this Paragraph, subject to DWR approval. Perpetual stewards may not assume project
maintenance or restoration responsibilities.
ATTACHMENT B
(2) The provider shall create and transfer to the perpetual steward a non-wasting endowment or other
dedicated financial surety to provide for the oversight of the completed permanent project. The
endowment amount shall be proportionate to the duties accepted by the perpetual steward.
(3) For projects utilizing conservation easements, the provider shall acquire and then transfer a
conservation easement to a perpetual steward in accordance with 26 U.S.C. 170(h) and the
Conservation and Historic Preservation Agreements Act, G.S. 121, Article 4. The terms of the
conservation easement shall be consistent with a Division-approved template or be approved by
the Division as conforming to Paragraph (c) of this Rule. Non -governmental perpetual stewards
shall be accredited by the Land Trust Accreditation Commission or approved by the Division.
(4) For projects utilizing SCMs, they shall be placed in and protected by recorded drainage easements
with recorded access easements to the nearest public right -of-way for purposes of operation and
maintenance. These easements shall be granted in favor of the person or entity responsible for
operating and maintaining the structures, with a note as to the responsible person or entity.
Easements shall be of sufficient width for inspection and maintenance of the project.
The Division may temporarily or permanently invalidate permanent credits generated by an SCM
if it determines that the SCM has been impacted due to failure to comply with the terms of an
associated project plan, nutrient offset banking instrument, easement, maintenance agreement,
other protective agreement, or this Rule.
(5) Projects designed to restore a natural ecological community at the project site, which are
completed and then damaged by natural causes, may be passively restored exclusively through
natural ecological processes.
(h) RENEWING TERM NUTRIENT OFFSET CREDITS. Expiring term nutrient offset credits may be renewed by
the provider upon providing documentation to the Division that the project meets the credit approval standard
set forth in Paragraph (c) of this Rule for the duratio n of the renewal period.
(i) ADDITIONAL PROVISIONS REGARDING THE DIVISION OF MITIGATION SERVICES.
(1) DMS shall establish and revise nutrient offset rates as set out in 15A NCAC 02R .0602. Offset
payments accepted by DMS shall be placed into the Riparian Buffer Restoration Fund
administered by the Department pursuant to G.S. 143-214.21.
(2) On or before November 30 of each year, DMS shall provide an annual report to the Division
concerning the nutrient in-lieu fee program that includes a requirement ledger . The requirement
ledger shall include all nutrient offset credit requirements paid by 8-digit cataloguing unit or for
each geographic area identified in Paragraph (b) of this Rule, the date by which the requirement
shall be satisfied by a project, and the projects and credits that have been applied to all
requirements.
(3) Subject to the geographic restrictions in Paragraph (b) of this Rule, DMS may accept payments for
nutrient offset credits prior to initiating projects. After accepting payment, DMS shall construct
projects that, upon completion as described in the approved project plan, will generate nutrient
offset credits sufficient to fulfill all new requirements generated by these payments. Projects shall
be instituted before the end of the first full State fiscal year after DMS receives payment and
constructed before the end of the third full State fiscal year after DMS receives payment. DMS
may also acquire credits from another provider to apply toward its requirements.
(4) If DMS fails to meet deadlines associated with project institution or construction as specified in
Subparagraph (3) of this Paragraph, then DMS shall develop an action strategy to include in the
annual report specified in Subparagraph (2) of this Paragraph. Action strategies shall include all of
the following:
(A) a list of factors resulting in delays or deficiencies in procurement, project
implementation, or construction;
(B) specific actions and a timeline planned by DMS to satisfy outstanding credit requirements
such that a project will be instituted before the end of the first full state fiscal year after
the action strategy is submitted to the Division in the annual report and constructed
before the end of the third full state fiscal year after the action strategy is submit ted to the
Division in the annual report, unless otherwise specified in the action strategy;
(C) the anticipated date by which all outstanding nutrient offset credit requirements will be
satisfied; and
(D) an evaluation of current progress in relation to any prior action strategies.
ATTACHMENT B
(j) NUTRIENT OFFSET CREDIT TRANSACTIONS. Parties who seek to acquire nutrient offset credits under
rules of this Subchapter shall do so in compliance with those rules, the requirements of Paragraph (b) of this Rule,
G.S. 143-214.26, and the following:
(1) Offset payments made to DMS shall be contingent upon acceptance of the payment by DMS.
DMS shall consider its financial, temporal, and technical ability to satisfy the request to make its
determination.
(2) Where persons seek to satisfy regulatory obligations for more than one nutrient type, they shall
acquire nutrient reduction credits to address each type.
(3) Projects shall be approved and the associated offset credits released by the Division before they
may be utilized for NPDES wastewater permit compliance purposes.
(4) For offset credits used to meet NPDES wastewater discharge requirements, the applicant shall
provide 50 percent additional credits to address the uncertainty factor for using unmonitored
nonpoint source reductions to meet point source discharge limits. Application of this ratio is in
addition to other ratios that may be applied, including delivery or transport factors where
applicable. Exceptions to the application of this uncertainty factor are as follows:
(A) The uncertainty factor for wastewater dischargers in the Jordan Lake watershed shall
instead be determined in accordance with 15A NCAC 02B .0273(2)(d)(ii) until final
action is taken with respect to that rule's next readoption pursuant to G.S. 150B -21.3A,
S.L. 2016-94, and S.L. 2018-5.
(B) The uncertainty factor for wastewater dischargers in the Falls Lake watershed shall
instead be determined in accordance with 15A NCAC 02B .0282(2)(b)(i) until final
action is taken with respect to that rule's next readoption pursuant to G.S. 150B-21.3A,
S.L. 2016-94, and S.L. 2018-5.
(5) Delivery factors shall be applied to estimate nutrient reductions to an impaired water body subject
to a nutrient strategy if required under rules of this Subchapter for that strategy.
(6) Term credits may be utilized for compliance only during the year in which they are generated and
as described in Subparagraph (d)(2) of this Rule. They may not be cumulatively banked for future
years.
(k) DEVELOPER-RESPONSIBLE NUTRIENT OFFSET PROJECT S. A developer subject to new development
stormwater requirements of this Subchapter may satisfy its nutrient reduction obligations by generating its own
offsite credits. It may do so by establishing a nutrient offset bank and generating credits in accorda nce with this
Rule. Alternatively, the developer shall comply with all provisions of this Rule governing the generation of nutrient
offset credits by a provider with the following modifications:
(1) Instead of a credit release schedule, credit for the proj ect may be assigned upon construction of the
project and submission to the Division of the as -built report as described in the project plan;
(2) Credit shall be assigned at a 50 percent rate based on the design specifications of the fully
completed project(s); and
(3) Liability for the generation of credits as described in the project plan remains with the developer
until the completion of all milestones associated with the project.
(l) NPDES WASTEWATER PERMITTEE-RESPONSIBLE NUTRIENT OFFSET PROJECTS. A locality,
authority, utility, or sanitation district operating a permitted wastewater facility subject to wastewater rules of this
Subchapter may generate nutrient offset credits by installing projects in accordance with this Rule. Any credits
generated may then be utilized for compliance purposes as if acquired from another provider.

History Note: Authority G.S. 143-214.1; 143-214.20; 143-214.21; 143-214.26;
Eff. August 1, 1998;
Amended Eff. August 1, 2006;
Amended Eff. September 1, 2010;
Recodified from 15A NCAC 02B .0240 Eff. April 1, 2020;
Readopted Eff. April 1, 2020.
ATTACHMENT B
ATTACHMENT C
15A NCAC 02B .0295 MITIGATION PROGRAM REQUIREMENTS FOR PROTECTION AND
MAINTENANCE OF RIPARIAN BUFFERS
a) PURPOSE. The purpose of this Rule is to set forth the mitigation requirements that apply to applicants listed in
Paragraph (c) of this Rule and to set forth requirements for buffer mitigation providers.
b) DEFINITIONS. For the purpose of this Rule, these terms shall be defined as follows:
1) "Authority" means either the Division or a local government that has been delegated or designated
pursuant to Rules .0233, .0243, .0250, .0259, .0267, or .0607 of this Subchapter to implement the
riparian buffer program.
2) "Compensatory Buffer Mitigation Bank" means a buffer mitigation site created by a mitigation
provider and approved for mitigation credit by the Division through execution of a mitigation
banking instrument.
3) 'Division" means the Division of Water Resources of the North Carolina Department of
Environment and Natural Resources.
4) "Enhancement Site" means a riparian zone site characterized by conditions between that of a
restoration site and a preservation site such that the establishment of woody stems (i.e., tree or
shrub species) will maximize nutrient removal and other buffer functions.
5) "Hydrologic Area" means the Watershed Boundary Dataset (WBD), located at no cost at
http: //data. nco nemap. conVgeoportal/catalog/search/resource/details.page'?uuid= { 16A42F 31-
6DC7-4EC3-88A9-03E6B7D55653} using the eight -digit Hydrologic Unit Code (HUC) prepared
by the United States Geological Survey.
6) "Locational Ratio" means the mitigation ratio applied to the mitigation requirements based on the
location of the mitigation site relative to the impact site as set forth in Paragraph (f) of this Rule.
7) "Mitigation banking instrument" means the legal document for the establishment, operation, and
use of a mitigation bank.
8) "Monitoring period" means the length of time specified in the approved mitigation plan during
which monitoring of vegetation success and other anticipated benefits to the adjacent water as
listed in the mitigation approval is done.
9) "Non -wasting endowment" means a fund that generates enough interest to cover the cost of the
long term monitoring and maintenance.
10) "Outer Coastal Plain" means the portion of the state shown as the Middle Atlantic Coastal Plain
63) on Griffith, et al. (2002) "Ecoregions of North and South Carolina." Reston, VA, United
States Geological Survey available at no cost at
http: //www. epa. gov/wed/page s/ecoregions/ncsc_eco. htm.
11) 'Preservation Site" means riparian zone sites that, as determined by a site visit conducted by the
Authority, are characterized by a forest consisting of the forest strata and diversity of species
appropriate for the location.
12) "Restoration Site" means riparian zone sites that are characterized by an absence of trees and by a
lack of dense growth of smaller woody stems (i.e., shrubs or saplings) or sites that are
characterized by scattered individual trees such that the tree canopy is less than 25 percent of the
cover and by a lack of dense growth of smaller woody stems (i.e., shrubs or saplings).
13) "Riparian buffer mitigation unit" means a unit representing a credit of riparian buffer mitigation as
set forth in Paragraph (m) of this Rule.
14) "Riparian wetland" means a wetland that is found in one or more of the following landscape
positions:
A) in a geomorphic floodplain;
B) in a natural topographic crenulation;
C) contiguous with an open water equal to or greater than 20 acres in size; or
D) subject to tidal flow regimes excluding salt/brackish marsh wetlands.
15) "Stem" means a woody seedling, sapling, shrub, or tree, no less than 10 centimeters in height.
16) "Urban" means an area that is either designated as an urbanized area under the most recent federal
decennial census available at no cost at http://www.census.gov/ or is located within the corporate
limits of a municipality.
17) "Zonal Ratio" means the mitigation ratio applied to impact amounts in the respective zones of the
riparian buffer as set forth in Paragraph (e) of this Rule.
c) MITIGATION REQUIREMENTS. Buffer mitigation is required when one of the following applies:
1) The applicant has received an authorization certificate for impacts pursuant to Rule .0233, .0243,
0250, .0259, .0267, or .0607 of this Subchapter and is required to perform mitigation as a
condition of the authorization certificate; or
2) The applicant has received a variance pursuant to Rule .0233, .0243, .0250, .0259, .0267, or .0607
of this Subchapter and is required to perform mitigation as a condition of a variance approval.
Any applicant covered under this Paragraph shall submit to the Authority a written mitigation proposal that
calculates the required area of mitigation and describes the area and location of each type of proposed mitigation.
The applicant shall not impact buffers until the Authority approves the mitigation plan and issues written approval.
d) AREA OF IMPACT. The Authority shall determine the area of impact in square feet to each Zone as defined
by the applicable Rule .0233, .0243, .0250, .0259, .0267, or .0607 of this Subchapter of the proposed riparian buffer
by adding the following:
1) The area of the footprint of the use impacting the riparian buffer;
2) The area of the boundary of any clearing and grading activities within the riparian buffer
necessary to accommodate the use; and
3) The area of any ongoing maintenance corridors within the riparian buffer associated with the use.
The Authority shall deduct from this total the area of any wetlands that are subject to and compliant with riparian
wetland mitigation requirements under 15A NCAC 02H .0506 and are located within the proposed riparian buffer
impact area.
e) AREA OF MITIGATION REQUIRED ON ZONAL MITIGATION RATIOS. The Authority shall determine
the required area of mitigation for each Zone by applying each of the following ratios to the area of impact
calculated under Paragraph (d) of this Rule:
Basin/Watershed Zone 1 Ratio Zone 2 Ratio
Neuse River Basin (15A NCAC 02B .0233) 3:1 1.5:1
Catawba River Basin (15A NCAC 02B .0243) 2:1 1.5:1
Randleman Lake Watershed (15A NCAC 02B .0250) 3:1 1.5:1
Tar -Pamlico River Basin (15A NCAC 02B .0259) 3:1 1.5:1
Jordan Lake Watershed (15A NCAC 02B .0267) 3:1 1.5:1
Goose Creek Watershed (15A NCAC 02B .0607) 3:1A
A The Goose Creek Watershed does not have a Zone 1 and Zone 2. The mitigation ratio in the Goose
Creek Watershed is 3:1 for the entire buffer.
f) AREA OF MITIGATION REQUIRED ON LOCATIONAL MITIGATION RATIOS. The applicant or
mitigation provider shall use the following locational ratios as applicable based on location of the proposed
mitigation site relative to that of the proposed impact site. Locational ratios shall be as follows:
Location Ratio
Within the 12-di git HULA 0.75:1
Within the eight -digit HUCB 1:1
Outside of the eight -digit HUCB 2:1
A Except within the Randleman Lake Watershed. Within the Randleman Lake Watershed
the ratio is 1:1.
B Except as provided in Paragraph (g) of this Rule.
g) GEOGRAPHIC RESTRICTIONS ON LOCATION OF MITIGATION. Mitigation shall be performed in the
same river basin where the impact is located with the following additional specifications:
1) In the following cases, mitigation shall be performed in the same watershed where the impact is
located:
A) Falls Lake Watershed, as defined in Rule .0275 of this Section;
B) Goose Creek Watershed, as defined in Rule .0601 of this Subchapter;
C) Randleman Lake Water Supply Watershed, as defined in Rule .0248 of this Section;
D) Each subwatershed of the Jordan Lake watershed, as defined in Rule .0262 of this
Section; and
E) Other watersheds as specified in riparian buffer protection rules adopted by the
Commission.
2) Buffer mitigation for impacts within watersheds with riparian buffer rules that also have federally
listed threatened or endangered aquatic species may be done within other watersheds with the
same federally listed threatened or endangered aquatic species as long as the impacts are in the
same river basin as the mitigation site.
h) MITIGATION OPTIONS FOR APPLICANTS. The applicant may propose any of the following types of
mitigation:
1) Riparian buffer restoration or enhancement pursuant to Paragraph (n) of this Rule;
2) Payment of a compensatory mitigation fee to a compensatory buffer mitigation bank pursuant to
Paragraph (i) of this Rule or payment of a compensatory mitigation fee to the Riparian Buffer
Restoration Fund pursuant to Paragraph 0) of this Rule. Payment shall conform to the
requirements of G.S. 143-214.20;
3) Donation of real property or of an interest in real property pursuant to Paragraph (k) of this Rule;
4) Alternative buffer mitigation pursuant to Paragraph (o) of this Rule; or
5) Other buffer mitigation as approved by the Environmental Management Commission as a
condition of a variance approval.
i) PURCHASE OF BUFFER MITIGATION CREDITS FROM A PRIVATE OR PUBLIC COMPENSATORY
BUFFER MITIGATION BANK. Applicants who choose to satisfy some or all of their mitigation by purchasing
mitigation credits from a private or public compensatory buffer mitigation bank shall meet the following
requirements:
1) The compensatory buffer mitigation bank from which credits are purchased shall have available
riparian buffer credits approved by the Division;
2) The compensatory buffer mitigation bank from which credits are purchased shall be located as
described in Paragraphs (e), (f), and (g) of this Rule; and
3) After receiving a mitigation acceptance letter from the compensatory buffer mitigation bank, proof
of payment for the credits shall be provided to the Authority prior to any activity that results in the
removal or degradation of the protected riparian buffer.
0) PAYMENT TO THE RIPARIAN BUFFER RESTORATION FUND. Applicants who choose to satisfy some or
all of their mitigation requirement by paying a compensatory mitigation fee to the Riparian Buffer Restoration Fund
shall meet the requirements of Rule .0269 of this Section. Payment made to the NC Division of Mitigation Services
DMS) shall be contingent upon acceptance of the payment by the DMS. The DMS shall consider their financial,
temporal, and technical ability to satisfy the mitigation request to determine whether they shall accept or deny the
request.
k) DONATION OF PROPERTY. Applicants who choose to satisfy their mitigation requirement by donating real
property or an interest in real property to fully or partially offset an approved payment into the Riparian Buffer
Restoration Fund pursuant to Paragraph 0) of this Rule shall do so in accordance with 15A NCAC 02R .0403.
1) MITIGATION SITE REQUIREMENTS FOR APPLICANTS AND MITIGATION PROVIDERS. For each
mitigation site proposed by an applicant or mitigation provider under Paragraphs (n) or (o) of this Rule, the
Authority shall identify functional criteria to measure the anticipated benefits of the mitigation to the adjacent water.
The Authority shall issue a mitigation determination that specifies the area, type, and location of mitigation and the
water quality benefits to be provided by the mitigation site. All mitigation proposals shall meet the following
criteria:
1) The location of the buffer mitigation site shall comply with the requirements of Paragraphs (f) and
g) of this Rule. In the Catawba watershed, buffer mitigation may be done along the lake
shoreline as well as along intermittent and perennial stream channels throughout the watershed.
2) The mitigation proposal shall include a commitment to provide:
A) a perpetual conservation easement or similar preservation mechanism to ensure perpetual
stewardship that protects the mitigation site's nutrient removal and other water quality
functions;
B) a non -wasting endowment or other dedicated financial surety to provide for the perpetual
land management and hydrological maintenance of lands and maintenance of structures
as applicable; and
C) financial assurance in the form of a completion bond, credit insurance, letter of credit,
escrow, or other vehicle acceptable to the Authority payable to, or for the benefit of, the
Authority in an amount sufficient to ensure that the property is secured in fee title or by
easement, and that planting or construction, monitoring and maintenance are completed
as necessary to meet success criteria as specified in the approved mitigation plan. This
financial assurance obligation shall not apply to the NC DMS.
3) Diffuse flow of runoff shall be maintained in the riparian buffer. Any existing impervious cover
or stormwater conveyances such as ditches, pipes, or drain tiles shall be eliminated and the flow
converted to diffuse flow. If the applicant or mitigation provider determines that elimination of
existing stormwater conveyances is not feasible, then they shall include a justification and shall
provide a delineation of the watershed draining to the stormwater outfall and the percentage of the
total drainage by area treated by the riparian buffer with the mitigation plan specified in Paragraph
n) or (o) of this Rule for Authority approval. During mitigation plan review and approval, the
Authority may reduce credit proportionally.
4) Sewer easement within the buffer. If the proposed mitigation site contains a sewer easement in
Zone 1, that portion of the sewer easement within Zone 1 shall not be suitable for buffer
mitigation credit. If the proposed mitigation site contains a sewer easement in Zone 2, the portion
of the sewer easement in Zone 2 may be suitable for buffer mitigation credit if:
A) the applicant or mitigation provider restores or enhances the forested buffer in Zone 1
adjacent to the sewer easement;
B) the sewer easement is required to be maintained in a condition that meets the vegetative
requirements of the collection system permit; and
C) diffuse flow is provided across the entire buffer width.
5) The applicant or mitigation provider shall provide a site specific credit/debit ledger to the
Authority at regular intervals as specified in the mitigation plan approval or mitigation banking
instrument once credits are established and until they are exhausted.
6) Buffer mitigation credit, nutrient offset credit, wetland mitigation credit, and stream mitigation
credit shall be accounted for in accordance with the following:
A) Buffer mitigation used for buffer mitigation credit shall not be used for nutrient offset
credits;
B) Buffer mitigation credit shall not be generated within wetlands that provide wetland
mitigation credit required by 15A NCAC 02H .0506; and
C) Buffer mitigation credit may be generated on stream mitigation sites as long as the width
of the restored or enhanced riparian buffer meets the requirements of Subparagraph (n)(1)
of this Rule.
m) RIPARIAN BUFFER MITIGATION UNITS. Mitigation activities shall generate riparian buffer mitigation
units as follows:
Mitigation Activity
Square Feet of
Mitigation Buffer
Riparian Buffer
Mitigation Units Generated
Restoration Site 1 1
Enhancement Site 2 1
Preservation Site on Non-Subj ect Urban Streams 3 1
Preservation Site on Subject Urban Streams 3 1
Preservation Site on Non-Subj ect Rural Streams 5 1
Preservation Site on Subject Rural Streams 10 1
n) RIPARIAN BUFFER RESTORATION SITE OR ENHANCEMENT SITE. Authority staff shall make an on -
site determination as to whether a potential mitigation site qualifies as a restoration site or enhancement site as
defined in Paragraph (b) of this Rule. Riparian buffer restoration sites or enhancement sites shall meet the following
requirements:
1) Buffer restoration sites or enhancement sites may be proposed as follows:
Buffer width (ft)
Proposed
Percentage
of Full Credit
Less than 20 0 %
20-29 75 %
30-100 100 %
101-200 33%
2) The applicant or mitigation provider shall submit a restoration or enhancement mitigation plan to
the Authority for written approval. The plan shall demonstrate compliance with the requirements
of this Paragraph and Paragraphs (1) and (m) of this Rule and shall also contain the following:
A) A map of the proposed restoration or enhancement site;
B) A vegetation plan that shall detail the activities proposed to ensure a final performance
standard of 260 stems per acre at the completion of monitoring. The final performance
standard shall include a minimum of four native hardwood tree species or four native
hardwood tree and native shrub species, where no one species is greater than 50 percent
of stems. Native hardwood and native shrub volunteer species may be included to meet
the final performance standard of 260 stems per acre. The Authority may approve
alternative vegetation plans upon consideration of factors, including site wetness and
plant availability, to meet the requirements of this Part;
C) A grading plan (if applicable). The site shall be graded in a manner to ensure diffuse
flow through the entire riparian buffer;
D) A schedule for implementation, including a fertilization and herbicide plan if applicable;
and
E) A monitoring plan to document whether the site is expected to meet the final performance
standards as defined in Part (n)(2)(B) of this Rule and other anticipated benefits to the
adjacent water. The plan shall include a proposed schedule and method for monitoring
the vegetative status of the restoration or enhancement site for five years, including the
health and average stem densities of native hardwood tree or tree and shrub species that
are to be counted toward the final performance standard.
3) Within one year after Authority approval of the mitigation plan, the applicant or mitigation
provider shall present documentation to the Authority that the riparian buffer has been restored or
enhanced unless the applicant or mitigation provider requests, and the Authority agrees in writing
prior to that date, to a longer time period.
4) The applicant or mitigation provider shall submit written annual reports, unless an alternative
schedule has been approved by the Authority during the mitigation plan approval, for a period of
five years after completion of the activities identified in Part (n)(2)(B) of this Rule at the
restoration site or enhancement site showing:
A) compliance with the monitoring plan approved pursuant to Part (n)(2)(E) of this Rule;
and
B) that diffuse flow through the riparian buffer has been maintained.
If the Authority determines that the native hardwood tree or tree and shrub species at the site are not
expected to meet the final performance standards listed in Part (n)(2)(B) of this Rule, then the Authority
may require that the applicant or mitigation provider replace trees or trees and shrubs as needed during that
five-year period. If the Authority determines that diffuse flow through the buffer is not being maintained,
then the Authority may require that the applicant or mitigation provider restore diffuse flow. If the
Authority determines that the final performance standards listed in Part (n)(2)(B) of this Rule have not been
achieved at the end of the five-year monitoring period, the Authority may require additional years of
monitoring. The Authority shall make determinations referenced in this Subparagraph on a site specific
basis based on the annual reports, any supplemental information submitted by the applicant or mitigation
provider, or a site evaluation by the Authority.
o) ALTERNATIVE BUFFER MITIGATION OPTIONS. Alternative buffer mitigation options are detailed in this
Paragraph Any proposal for alternative buffer mitigation shall be provided in writing to the Division, shall meet the
content and procedural requirements for approval by the Division, shall meet the requirements set out in Paragraphs
1) and (m) of this Rule and the requirements set out in the named Subparagraph of this Paragraph addressing that
applicable alternative buffer mitigation option:
1) Retroactive Credit. Alternative buffer mitigation sites constructed and within the required
monitoring period on the effective date of this Rule shall be eligible for use as alternative buffer
mitigation sites. Alternative buffer mitigation sites that have completed monitoring and were
released by the Division on or within the past 10 years of the effective date of this Rule shall be
eligible for use as alternative buffer mitigation sites. All alternative buffer mitigation site
proposals submitted under this Subparagraph shall meet the following:
A) A map or maps of the proposed alternative buffer mitigation site;
B) Documentation of pre-existing conditions showing that the proposed alternative buffer
mitigation site met the criteria to qualify for the applicable alternative buffer mitigation
type identified in the applicable Subparagraph of this Paragraph;
C) Documentation of the activities that were conducted at the proposed alternative buffer
mitigation site to meet success criteria identified in the applicable Subparagraph of this
Paragraph; and
D) Documentation that the proposed alternative buffer mitigation site met the success
criteria identified in the applicable Subparagraph of this Paragraph.
These alternative buffer mitigation sites shall receive credit in accordance with the criteria set
forth in Paragraph (m) and Subparagraph (n)(1) of this Rule.
2) Coastal Headwater Stream Mitigation. Wooded buffers planted along Outer Coastal Plain
headwater stream mitigation sites may also be approved as riparian buffer mitigation credit if the
site meets all applicable requirements of Paragraph (n) of this Rule. In addition, all success
criteria specified in the approval of the stream mitigation site by the Division shall be met. The
area of the buffer shall be measured perpendicular to the length of the valley being restored. The
area within the proposed buffer mitigation site shall not also be used as wetland mitigation.
3) Buffer Restoration and Enhancement on Non -Subject Streams. Restoration or enhancement of
buffers may be conducted on intermittent or perennial streams that are not subject to the applicable
Rule .0233, .0243, .0250, .0259, .0267, or .0607 of this Subchapter. These streams shall be
confirmed as intermittent or perennial streams by Division staff certified per G.S. 143-214.25A
using the Division publication, "Methodology for Identification of Intermittent and Perennial
Streams and Their Origins (v.4.11, 2010)" available at no cost at
http://portal.ncdenr.org/web/wq/swp/ws/401/waterresources/streamdetenninations. The proposal
shall meet all applicable requirements of Paragraph (n) of this Rule.
4) Preservation of Buffer on Non -Subject Streams. Preservation of buffers on intermittent or
perennial streams that are not subject to the applicable Rule .0233, .0243, .0250, .0259, .0267, or
0607 of this Subchapter may be proposed in order to permanently protect the buffer from cutting,
clearing, filling, grading, and similar activities that would affect the functioning of the buffer.
These streams shall be confirmed as intermittent or perennial streams by Division staff certified
per G.S. 143-214.25A using the Division publication, "Methodology for Identification of
Intermittent and Perennial Streams and Their Origins (v4.11, 2010)." The preservation site shall
meet the requirements of Subparagraph (n)(1) of this Rule and the requirements set forth in 15A
NCAC 02R .0403(c)(7), (8), and (11). The area of preservation credit within a buffer mitigation
site shall comprise of no more than 25 percent of the total area of buffer mitigation.
5) Preservation of Buffers on Subject Streams. Buffer preservation may be proposed on streams that
are subject to the applicable Rule .0233, .0243, .0250, .0259, .0267, or .0607 of this Subchapter in
order to permanently protect the buffer from cutting, clearing, filling, grading, and similar
activities that would affect the functioning of the buffer beyond the protection afforded by the
existing buffer rules on sites that meet the definition of a preservation site. The preservation site
shall meet the requirements of Subparagraph (n)(1) and the requirements set forth in 15A NCAC
02R .0403(c)(7), (8), and (11). The area of preservation credit within a buffer mitigation site shall
comprise of no more than 25 percent of the total area of buffer mitigation.
6) Enhancement of grazing areas adjacent to streams. Buffer credit at a 2:1 ratio shall be available
for an applicant or mitigation provider who proposes permanent exclusion of grazing livestock
that otherwise degrade the stream and riparian zone through trampling, grazing, or waste
deposition by fencing the livestock out of the stream and its adjacent buffer. The applicant or
mitigation provider shall provide an enhancement plan as set forth in Paragraph (n) of this Rule.
The applicant or mitigation provider shall demonstrate that grazing was the predominant land use
since the effective date of the applicable buffer rule.
7) Mitigation on ephemeral channels. For purposes of riparian buffer mitigation as described in this
Part, an "ephemeral channel" is defined as a natural channel exhibiting discernible banks within a
topographic crenulation (V-shaped contour lines) indicative of natural drainage on the 1:24,000
scale (7.5 minute) quadrangle topographic map prepared by the U.S. Geologic Survey, or as seen
on digital elevation models with contours developed from the most recent available LiDAR data,
available at no cost at http://www.ncfloodmaps.comAidar.com. Ephemeral channels only flow for
a short period of time after precipitation in the drainage area and do not have periods of base flow
sustained by groundwater discharge. The applicant or mitigation provider shall provide a
delineation of the watershed draining to the ephemeral channel. The entire area proposed for
mitigation shall be within the contributing drainage area to the ephemeral channel. The ephemeral
channel shall be directly connected to an intermittent or perennial stream and contiguous with the
rest of the mitigation site protected under a perpetual conservation easement. The area of the
mitigation site on ephemeral channels shall comprise no more than 25 percent of the total area of
buffer mitigation. The proposal shall meet all applicable requirements of Paragraph (n) of this
Rule for restoration or enhancement. The proposal shall meet all applicable requirements of
Subparagraph (o)(4) or (o)(5) of this Rule for preservation.
8) Restoration and Enhancement on Ditches. For purposes of riparian buffer mitigation as described
in this Part, a "ditch" is defined as a man-made channel other than a modified natural stream that
was constructed for drainage purposes. To be used for mitigation, a ditch shall meet all of the
following criteria:
A) be directly connected with and draining towards an intermittent or perennial stream;
B) be contiguous with the rest of the mitigation site protected under a perpetual conservation
easement;
C) stormwater runoff from overland flow shall drain towards the ditch.,
D) be between one and three feet in depth; and
E) the entire length of the ditch shall have been in place prior to the effective date of the
applicable buffer rule.
The width of the restored or enhanced area shall not be less than 30 feet and shall not exceed 50
feet for crediting purposes. The applicant or mitigation provider shall provide a delineation of the
watershed draining to the ditch. The watershed draining to the ditch shall be at least four times
larger than the restored or enhanced area along the ditch. The perpetual conservation easement
shall include the ditch and the confluence of the ditch with the intermittent or perennial stream,
and provide language that prohibits future maintenance of the ditch The proposal shall meet all
applicable requirements of Paragraph (n) of this Rule for restoration or enhancement.
9) Stormwater Treatment Options. All stormwater treatment options shall meet the following
requirements:
A) Structural options already required by other local, state, or federal rule or permit cannot
be used as alternative buffer mitigation credit, except to the extent such measure(s)
exceed the requirements of such rule or permit. Stormwater Best Management Practices
BMPs), including bioretention facilities, constructed wetlands, infiltration devices and
sand filters are all potentially approvable BMPs by the Division for alternative buffer
mitigation credit. Other BMPs may be approved only if they meet the nutrient removal
levels outlined in Part (o)(9)(B) of this Rule. Existing or planned BMPs for a local, state,
or federal rule or permit may be retrofitted or expanded to improve their nutrient removal
if this level of treatment is not required by other local, state, or federal rules. In this case,
the predicted increase in nutrient removal may be counted toward alternative buffer
mitigation credit;
B) Minimum treatment levels: Any structural BMP shall provide at least 30 percent total
nitrogen and 35 percent total phosphorus removal as demonstrated by a scientific and
engineering literature review as approved by the Division. The mitigation proposal shall
demonstrate that the proposed alternative removes an equal or greater annual mass load
of nutrients to surface waters as the buffer impact authorized in the authorization
certificate or variance, following the calculation of impact and mitigation areas pursuant
to Paragraphs (d), (e), and (f) of this Rule. To estimate the rate of nutrient removal of the
impacted buffer, the applicant or mitigation provider may use the "NC Division of Water
Quality — Methodology and Calculation for determining nutrient reductions associated
with Riparian Buffer Establishment" available at no cost at
http://portal.ncdenr.org/c/document_ library/get_file'?uuid=55c3758f-5e27-46cf-8237-
471`8900329a&groupld=38364. The applicant or mitigation provider may propose an
alternative method of estimating the rate of nutrient removal for consideration and review
by the Division;
C) All proposed structural BMPs shall follow the Division's "2009 Stormwater Best
Management Practice Design Manual" available at no cost at
http://portal.ncdenr.org/web/Ir/bmp-manual. If a specific proposed structural BMP is not
addressed in this Manual, the applicant or mitigation provider shall follow Chapter 20 in
this Manual for approval;
D) All structural options are required to have Division approved operation and maintenance
plans;
E) All structural options are required to have continuous and perpetual maintenance and
shall follow the Division's "2009 Stormwater Best Management Practice Design
Manual";
F) Upon completion of construction, the designer for the type of BMP installed shall certify
that the system was inspected during construction and that the BMP was constructed in
conformity with plans and specifications approved by the Division;
G) Removal and replacement of structural options: If a structural option is proposed to be
removed and cannot be replaced on -site, then a structural or non-structural measure of
equal or better nutrient removal capacity, as determined by calculations submitted to and
approved by the Division, in a location as specified by Paragraphs (f) and (g) of this Rule
shall be constructed as a replacement;
H) Renovation or repair of structural options: If the applicant, mitigation provider, or the
Division determines that a structural option must be renovated or repaired, it shall be
renovated to provide equal or better nutrient removal capacity than as originally
designed; and
I) Structural options, as well as their operation and maintenance, are the responsibility of
the landowner or easement holder unless the Division gives written approval for another
responsible party to operate and maintain them. Structural options shall be located in
recorded drainage easements for the purposes of operation and maintenance and shall
have recorded access easements to the nearest public right-of-way. These easements
shall be granted in favor of the party responsible for operating and maintaining the
structure, with a note that operation and maintenance is the responsibility of the
landowner, easement holder, or other responsible party.
10) Approval for other alternative buffer mitigation options. Other alternative riparian buffer
mitigation options not specified within this Rule may be submitted to the Division for review and
recommendation to the Environmental Management Commission on a case -by -case basis. Any
proposal submitted under this Paragraph shall provide documentation or calculations to
demonstrate that the proposed alternative mitigation option removes an equal or greater annual
mass load of nutrients to surface waters as a riparian buffer. Upon completion of the Division's
review, and prior to recommendation to the Environmental Management Commission, the
Division shall issue a 30-calendar day public notice through the Division's website and the
DWRwetlands Listserve. Division staff shall present their recommendations, including comments
received during the public notice period, to the Environmental Management Commission for a
final decision. If approved by the Environmental Management Commission, the alternative buffer
mitigation option may be proposed by other applicants and mitigation providers.
History Note: Authority G.S. 143-214.1; 143-214.5; 143-214.7; 143-214.20; 143-215.3(a)(1); 143-215.6A; 143-
215.6B; 143-215.6C; 143-215.8A; 143-215.8B, 143-282(c); 143B-282(d); S.L. 1998-221; S.L.
1999-329, s. 7.1; S.L. 2001-418, s. 4.(a); S.L. 2003-340, s. 5; S.L. 2005-190; S.L. 2006-259; S.L.
2009-337; S.L. 2009-486; S.L. 2014-95;
Temporary Adoption Eff. October 24, 2014;
Eff. November 1, 2015.
Sale/
Release Date Purchaser or % Credit Release Project Name Gov't Requiring
Pounds of
Nitrogen Acres Pounds of Nitrogen Acres Pounds of
Nitrogen Acres
- - - - NCDWR
Totals - - - - - -
Task 1: Conservation Easement Recorded & Financial Assurance
Credits Released/Available to
Bank Credits Debited/Sold From Bank Nutrient Credit Balance
Perry Hill Neuse Buffer & Nutrient Offset Mitigation Banking Instrument
(HUC 03020201 Neuse River Falls Basin)
Nitrogen Credit Ledger
Date Last Updated:
DWR Project #:
DRAFT
Sale/
Release Date Purchaser or % Credit Release Project Name Gov't Requiring
Pounds of
Phosphorus Acres Pounds of
Phosphorus Acres Pounds of
Phosphorus Acres
- - - - NCDWR
Totals - - - - - -

`
Task 1: Conservation Easement Recorded & Financial Assurance
Credits Released/Available to
Bank Credits Debited/Sold From Bank Nutrient Credit Balance
Perry Hill Neuse Buffer & Nutrient Offset Mitigation Banking Instrument
(HUC 03020201 Neuse River Falls Basin)
Phosphorus Credit Ledger
Date Last Updated:
DWR Project #:
DRAFT
Sale/
Release Date Purchaser or % Credit Release Project Name Gov't Requiring
Square Feet Acres Square Feet Acres Square Feet Acres
- - - - - NCDWR
Totals - - - - - -
Task 1: Conservation Easement Recorded & Financial Assurance
Credits Released/Available to Bank Credits Debited/Sold From Bank Buffer Credit Balance
Perry Hill Neuse Buffer & Nutrient Offset Mitigation Banking Instrument
(HUC 03020201 Neuse River Falls Basin)
Buffer Restoration Credit Ledger
Date Last Updated:
DWR Project #:
DRAFT