20190661 Ver 1_Credit Release Task 1_20200519

May 19, 2020

Wildlands Holdings III, LLC DWR Project #: 2019-0661
Attn: Shawn Wilkerson Johnston County
5605 Chapel Hill Rd, Suite 122
Raleigh, NC 27607

Re: Sassarixa Swamp II Nutrient Offset & Buffer Mitigation Banking Instrument
Sassarixa Swamp II Bank Parcel Credit Release – Task 1

Dear Mr. Wilkerson:

On May 4, 2020, DWR approved the Mitigation Banking Instrument (MBI) and the corresponding
Bank Parcel Development Package for the Sassarixa Swamp II Nutrient Offset and Buffer Mitigation
Bank for Wildlands Holdings III, LLC (WHIII). Additionally, the Sassarixa Swamp DMS Full
Delivery Mitigation Plan has been approved by DWR.

On April 29, 2020, DWR received a performance bond (#107182452) from WHIII in the amount of
$150,000 to cover performance obligations for the construction of the subject site. This bond is with
Travelers Casualty and Surety Company of America and expires upon the approval of the As -Built
Report.

On April 28, 2020, the DWR received a signed and recorded conservation easement and
corresponding plat for the subject site.

In accordance with the MBI, signed on May 4, 2020 the following Project Milestones have been met
and the corresponding credits shall be released:

Task/Milestones 1Credit

1) MBI and BPDP Approved by DWR, Full Delivery Mitigation Plan Approved 20%
By DWR, Conservation Easement recorded, and Financial Assurance Posted

TOTAL: 20%

1Credit release percentages exclude the buffer restoration credits within coastal headwater mitigation.

Sassarixa Swamp II
Wildlands
May 19, 2020

Page 2 of 2

By copy of this correspondence, DWR confirms that you have satisfied the above requirements for
the above-referenced tract and 20% of your Nitrogen nutrient offset credits
(0.20 x 32,486.270 lb-N = 6,497.254 lb-N) are now available to sell. Additionally, 20% of your
Neuse buffer Restoration credits (0.20 x 263,602 ft2 = 52,720.400 ft2) and 20% of your Neuse buffer
Enhancement credits from cattle exclusion (0.20 x 33,417.28 ft2 = 6,683.456 ft2) are now available to
sell.

Please note that nutrient offset credits generated at this site must be used for impacts in HUC
03020201 of the Neuse River Basin excluding the Falls Lake Watershed pursuant to 15A NCAC
02B .0703. Additionally, the riparian buffer credits must be used for impacts in the Neuse
River Basin in accordance with guidelines in the Consolidated Buffer Mitigation Rule, 15A
NCAC 02B .0295, which became effective on November 1, 2015.

Please use the Credit Ledger Templates provided on our website at:
http://portal.ncdenr.org/web/wq/nutrientbuffertemplates to track and report credit availability for the
Sasssarixa Swamp II Mitigation Bank. Upon receiving this correspondence, please submit three (3)
credit ledgers to DWR reflecting the available credits released for each mitigation type (Nitrogen,
Buffer Restoration, Buffer Enhancement). Nitrogen credits should be shown in both pounds and
square feet.

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

Sincerely,

Katie Merritt
401 & Buffer Permitting Branch

cc:File Copy (Katie Merritt)
Robert Bugg - Wildlands (via electronic mail)