20181096 Ver 1_Mitigation Bank Instrument_20200601

Strickland, Bev
From:
Kichefski, Steven L CIV USARMY CESAW (USA) <[e-mail]>
Sent:
Monday, June 1, 2020 9:15 AM
To:
Tim Morris
Cc:
Tugwell, Todd J CIV USARMY CESAW (US); Haupt, Mac; Kim Browning; Davis, Erin B;
Bowers, Todd; Byron Hamstead ([e-mail]); Leslie, Andrea J; Wilson,
Travis W.; Gledhill-earley, Renee; Crumbley, Tyler A CIV USARMY CESAW (USA);
McLendon, C S CIV USARMY CESAW (USA); Jones, M Scott (Scott) CIV USARMY
CESAW (USA)
Subject:
[External] KCI Yadkin 01 Umbrella Mitigation Bank Instrument and Hair Sheep
(SAW-2018-00712) Mitigation Plan Approval
Attachments:
Hair Sheep -Yadkin 01 UMBI_USACEsigned.pdf, SAW-2018-00712_KCIYadkin01 UMB-
Hai rSheepSite_Approval.pdf
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Ti m,
Please see the attached signed instrument for the KCI Yadkin 01 Umbrella Mitigation Bank Instrument and the
approval letter for the Hair Sheep (SAW-2018-00712) Final Mitigation Plan. Please note that the approved
instrument, final plan, design plans submitted with the PCN, as well as all applicable general and regional
conditions (previously provided) must be strictly adhered to in order for the authorization to remain valid.
This electronic copy is your official Department of the Army authorization; no paper copy will be mailed.
Regards,
Steve Kichefski
Regulatory Project Manager
U.S. Army Corps of Engineers
Wilmington District, Asheville Field Office
151 Patton Avenue, Suite 208
Asheville, NC 28801
(828)-271-7980 Ext. 4234
The Wilmington District is committed to providing the highest level of support to the public. To help us ensure
we continue to do so, please complete the Customer Satisfaction Survey located at our website at
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hsL9nosv9nXpZre4Coe5Q30GG83E230CSS6_TgaOkfG4VpSit6OQ3PRiZKABTA$ to complete the survey online.

Version March 2020
AGREEMENT TO ESTABLISH THE KCI YADKIN 01 UMBRELLA MITIGATION
BANK IN THE YADKIN RIVER RIVER BASIN WITHIN
THE STATE OF NORTH CAROLINA
USACE approval of this Instrument constitutes the regulatory approval required for
the KCI YADKIN 01 UMBRELLA MITIGATION BANK to be used to provide
compensatory mitigation for Department of the Army permits pursuant to 33 C.F.R.
332.8(a)(1). This Instrument is not a contract between the Sponsor or Property Owner
and USACE or any other agency of the federal government. Any dispute arising under
this Instrument will not give rise to any claim by the Sponsor or Property Owner for
monetary damages. This provision is controlling notwithstanding any other provision or
statement in the Instrument to the contrary.
This Umbrella Mitigation Banking Instrument (UMBI) is made and entered into on
the day of 26thMaY2020, by KCI Technologies Inc., hereinafter Sponsor, and the
U.S. Army Corps of Engineers (Corps), and each of the following agencies, upon its
execution of this UMBI; the Environmental Protection Agency (EPA), the U.S. Fish
and Wildlife Service (FWS), the National Marine Fisheries Service (NMFS), the North
Carolina Wildlife Resources Commission (NCWRC), the State Historic Preservation
Office (SHPO) and the North Carolina Division of Water Resources (NCDWR). The
Corps, together with the State and Federal agencies that execute this UMBI, are
hereinafter collectively referred to as the Interagency Review Team (IRT).
WHEREAS the purpose of this agreement is to establish an umbrella mitigation bank
(Bank) providing compensatory mitigation for unavoidable wetland and/or stream impacts
separately authorized by Section 404 Clean Water Act permits and /or Section 10 of the
Rivers and Harbors Act permits in appropriate circumstances;
WHEREAS the agencies comprising the IRT agree that the Bank sites are suitable
mitigation bank sites, and that implementation of the Mitigation Plans are likely to result in
net gains in wetland and/or stream functions at the Bank sites, and have therefore
approved the Mitigation Plans;
THEREFORE, it is mutually agreed among the parties to this agreement that the
following provisions are adopted and will be implemented upon signature of this UMBI.
Section I: General Provisions
A. The Sponsor is responsible for assuring the success of the restoration, creation,
enhancement and preservation activities at the Bank sites, and for the overall
operation and management of the Bank. The Sponsor assumes the legal
responsibility for providing the compensatory mitigation once a permittee secures
credits from the Sponsor and the District Engineer (DE) receives documentation that
confirms the Sponsor has accepted responsibility for providing the required
compensatory mitigation.
B. The goals of the Umbrella Bank sites are to restore, enhance, create and preserve
wetland and/or stream systems and their functions to compensate in appropriate

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circumstances for unavoidable wetland and/or stream impacts authorized by Section
404 of the Clean Water Act permits and or Section 10 of the Rivers and Harbors Act
permits in circumstances deemed appropriate by the Corps after consultation,
through the permit review process, with members of the IRT.
C. Use of credits from the Bank to offset wetland and/or stream impacts authorized by
Clean Water Act permits must be in compliance with the Clean Water Act and
implementing regulations, including but not limited to the 404(b)(1) Guidelines, the
National Environmental Policy Act, and all other applicable Federal and State
legislation, rules and regulations. This agreement has been drafted in accordance
with the regulations for Compensatory Mitigation for Losses of Aquatic Resources
effective June 9, 2008 (33 CFR Parts 325 and 332) (Mitigation Rule).
D. The IRT shall be chaired by the DE of the U.S. Army Corps of Engineers, Wilmington
District (District). The IRT shall review documentation for the establishment of
mitigation bank sites. The IRT will also advise the DE in assessing monitoring reports,
recommending remedial measures, approving credit releases, and approving
modifications to this instrument. The IRT's role and responsibilities are more fully set
forth in Sections 332.8 of the Mitigation Rule. The IRT will work to reach consensus
on its actions.
E. The DE, after consultation with the appropriate Federal and State review agencies
through the permit review process, shall make final decisions concerning the amount
and type of compensatory mitigation to be required for unavoidable, permitted
wetland and/or stream impacts, and whether or not the use of credits from the Bank is
appropriate to offset those impacts. In the case of permit applications and
compensatory mitigation required solely under the Section 401 Water Quality
Certification rules of North Carolina, the NCDWR will determine the amount of credits
that can be withdrawn from the Bank. Any credits used to offset impacts solely
authorized by Section 401 cannot be used for other impacts authorized under Section
404 of the Clean Water Act or Section 10 of the Rivers and Harbors Act.
F. The parties to this agreement understand that a watershed approach to
establish compensatory mitigation must be used to the extent appropriate
and practicable. Where practicable, in -kind compensatory mitigation is
preferred.
Section II: Geographic Service Area
The Geographic Service Area (GSA) is the designated area within which the Umbrella
Bank is authorized to provide compensatory mitigation required by DA permits. The GSA
for this Bank shall include the Yadkin River Basin Hydrologic Unit 03040101 in North
Carolina. Credits are to be used in the same HUC in which they were generated, and
credits within each HUC should be tracked on separate ledgers.
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Section III: Mitigation Plan
Any Mitigation Plan submitted pursuant to this agreement must contain the
information listed in 332.4(c) (2) through (14) of the Compensatory Mitigation Rule.
A. The Sponsor will perform work described in each site -specific approved Mitigation
Plans.
B. The Sponsor shall monitor the Bank Sites as described in the approved Mitigation
Plans, until such time as the IRT determines that the performance standards
described in the Mitigation Plans have been met.
C. Mitigation Plans submitted for inclusion in this bank must meet the requirements of
any District guidance that is current at the time the new site is submitted to the
District, including any updates made to monitoring requirements, credit releases, long
term management, or any other provisions that are required and/or specifically
addressed in the Mitigation Plan. The addition of any site to this instrument shall be
considered as a modification to this instrument, and processed in accordance with the
procedures set forth in the Mitigation Rule.
D. The members of the IRT will be allowed reasonable access to the Property for
the purposes of inspection of the Property and compliance monitoring of the
Mitigation Plan.
Section IV: Resorting
A. The Sponsor shall submit to the DE, for distribution to each member of the IRT, an
annual report describing the current condition of the Bank Site(s) and the condition
of the Bank Sites in relation to the performance standards in the Mitigation Plans.
The Sponsor shall provide to the DE any monitoring reports described in the
Mitigation Plans.
B. As part of each annual monitoring report, the Sponsor shall also provide ledger
reports documenting credit transactions as described in Section VIII of this UMBI.
C. Each time an approved credit transaction occurs, the Sponsor shall provide
notification to the DE within 30 days of the transaction. This notification shall consist
of a summary of the transaction and a full ledger report reflecting the changes from
the transaction. Additionally, signed copies of the Compensatory Mitigation Transfer
of Responsibility Form shall be submitted to the Corps Project Manager for the permit
and the Corps Bank Manager for the bank site.
Section V: Remedial Action
A. The DE shall review the monitoring reports, as required in the Mitigation Plans, and
may, at any time, after consultation with the Sponsor and the IRT, direct the
Sponsor to take remedial action at the Bank sites. Remedial actions required by
the DE shall be designed to achieve the performance standards as specified in the

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Mitigation Plans. All remedial actions required under this section shall include a
work schedule and monitoring criteria that will take into account physical and
climactic conditions.
B. The Sponsor shall implement any remedial measures required pursuant to the above.
C. In the event the Sponsor determines that remedial action may be necessary to
achieve the required performance standards, it shall provide notice of such proposed
remedial action to all members of the IRT. No remedial actions shall be taken without
the concurrence of the DE, in consultation with the IRT.
Section VI: Use of Mitigation Credits
A. Description of credit classifications and provisions pertaining to the use of those
credits shall be provided in the Mitigation Plans to be included in this bank. Credit
classifications (e.g., cold water stream, cool water stream, warm water stream,
coastal wetlands, non -riparian wetlands, riparian non-riverine wetlands, and riparian
riverine wetlands) will be in accordance with current District guidance at the time the
Mitigation Plan is submitted to the District. In general, these classifications will be
used to determine if a particular credit qualifies as "In- Kind" mitigation. Exceptions
to the use of "In -Kind" mitigation may be allowed at the discretion of the permitting
agencies on a case -by -case basis.
B. Wetland and stream compensation ratios are determined by the DE on a case -by -
case basis based on considerations of functions of the wetlands and/or streams
impacted, the severity of the wetland and/or stream impacts, the relative age of the
mitigation site, whether the compensatory mitigation is in -kind, and the physical
proximity of the wetland and/or stream impacts to the Bank Site.
C. Notwithstanding the above, all decisions concerning the appropriateness of using
credits from the Bank to offset impacts to waters and wetlands, as well as all
decisions concerning the amount and type of such credits to be used to offset
wetland and stream impacts authorized by Department of the Army permits, shall be
made by the DE, pursuant to Section 404 of the Clean Water Act and implementing
regulations and guidance. These decisions may include notice to and consultation
with the members of the IRT through the permit review process if the DE determines
this to be appropriate given the scope and nature of the impact.
Section VII: Credit Release Schedule
A. All credit releases must be approved in writing by the DE, following consultation with
the IRT, based on a determination that required performance standards have been
achieved.
B. A credit release schedule shall be provided in each site -specific Mitigation Plans
that are included in this bank. The release schedule will list all of the proposed credit
releases and any performance standards associated with those releases.
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C. In general, the initial allocation of credits from any site included as part of this bank
shall be available for sale only after the completion of all of the following:
1. Execution of this UMBI by the Sponsor, the DE, and other agencies eligible for
membership in the IRT who choose to execute this agreement, to include the
approval of any modifications to this agreement when new sites are added to it;
2. Approval of a final Mitigation Plan;
3. Confirmation that the mitigation bank site has been secured;
4. Delivery of executed financial assurances as specified in the site -specific
Mitigation Plan;
5. Delivery of a copy of the recorded long-term protection mechanism as described
in as specified in the site -specific Mitigation Plan, as well as a title opinion
covering the property acceptable to the DE; and
6. Issuance of any DA permits necessary for construction of the mitigation site
(if necessary).
The Sponsor must initiate implementation of the approved Mitigation Plans no later
than the first full growing season after the date of the first credit transaction (i.e.,
construction of the initial physical and biological improvements proposed in the approved
Mitigation Plans must be started by the end of the first full growing season following the
initial sale of any credits from the Bank. This provision does not apply to preservation -
only sites that do not include any physical or biological improvements. Subject to the
Sponsor's continued satisfactory completion of all required performance standards and
monitoring, additional restoration mitigation credits will be available for sale by the
Sponsor as specified in the final Mitigation Plan.
Section VIII: Accounting Procedures
A. The Sponsor shall develop accounting procedures acceptable to the DE for
maintaining accurate records of debits made from the Bank. Such procedures shall
include the generation of a ledger by the Sponsor showing credits used at the time
they are debited from the Bank. All ledger reports shall identify credits debited and
remaining by type of credit and shall include for each reported debit the Corps ORM
ID number for the permit for which the credits were utilized and the permitted impacts
for each resource type.
B. When credits from the bank are sought by a permit applicant, the Sponsor shall
prepare a reservation letter for the applicant to include with the Corps permit
application, that documents the number and type of credits available to be debited
from the bank, and the amount of time (if any) that those credits will be held for that
applicant (with an expiration date for the letter of availability).
C. Each time an approved credit transaction occurs, the Sponsor shall notify the DE
within 30 days of the transaction with a summary of the transaction and a full ledger
report showing the changes made. Signed copies of the Transfer of Mitigation
Responsibility form shall also be submitted to the Corps permit Project Manager and
the Corps Bank Manager for that bank.

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D. The Sponsor shall prepare an annual ledger report, on each anniversary of the date of
execution of this agreement, showing all credits used, any changes in credit availability
(e.g., additional credits released, credit sales, suspended credits, etc.), and the
beginning and ending balance of remaining credits. The Sponsor shall submit the
annual report to the DE, for distribution to each member of the IRT, until such time as
all of the credits have been utilized, or this agreement is otherwise terminated.
Section IX: Financial Assurances
A. Financial assurances for the Bank sites will be detailed in the site -specific Mitigation
Plans. The Sponsor shall provide financial assurances in a form acceptable to the DE,
sufficient to assure completion of all mitigation work, required reporting and
monitoring, and any remedial work required pursuant to this UMBI. The financial
assurance value should be based on the cost of doing the mitigation work, including
costs for land acquisition, planning and engineering, legal fees, mobilization,
construction, and monitoring. For preservation only Bank Sites, no financial
assurances will generally be required unless there are specific activities necessary to
ensure the successful preservation of resources on the site, in which case appropriate
financial assurances may still be required.
B. All financial assurances shall be made payable to a standby trust or to a third -party
designee, acceptable to the Corps, who agrees to complete the project or provide
alternative mitigation. Financial assurances structured to provide funds to the Corps
in the event of default by the Bank Sponsor are not acceptable.
C. The form and amount of financial assurances must be stated in the site -specific
Mitigation Plans in order for the Mitigation Plan to be approved. This must include
the name of the specific provider of those assurances and the method by which the
financial assurances will be provided in the event that they must be utilized. Original
copies of the financial assurance documents must be provided to the DE prior to the
initial release of credits.
D. A financial assurance must be in the form that ensures that the DE receives
notification at least 120 days in advance of any termination or revocation.
Section X: Site Protection
A. The Sponsor shall grant a Conservation Easement (CE) in form acceptable to the
DE, sufficient to protect the Bank Sites in perpetuity. The CE shall be perpetual,
preserve all natural areas, and prohibit all use of the property inconsistent with its use
as mitigation property, including any activity that would materially alter the biological
integrity or functional and educational value of wetlands or streams within the Bank
Site, consistent with the Mitigation Plan. The purpose of the CE will be to assure that
future use of the Bank Site will result in the restoration, protection, maintenance and
enhancement of wetland and/or stream functions described in the Mitigation Plan.
The name and contact information for the Corps approved easement holder and a
draft copy of the CE will be provided in the site -specific Mitigation Plans.

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B. The Sponsor shall deliver a title opinion acceptable to the DE covering the mitigation
property. The property shall be free and clear of any encumbrances that would
conflict with its use as mitigation, including, but not limited to, any liens that have
priority over the recorded CE.
C. Subsequent to the recording of the CIE, the Sponsor may convey the Bank Site
property either in fee or by granting an easement to a qualified land trust, state
agency, or other appropriate nonprofit organization approved by the Corps. The
Sponsor is responsible for ensuring that the CIE is re -recorded so that it remains
within the chain of title. The terms and conditions of this conveyance shall not conflict
with the intent and provisions of the CIE nor shall such conveyance enlarge or modify
the uses specified in the easement. The CIE must contain a provision requiring 60 day
advance notification to the DE before any action is taken to void or modify the CIE,
including transfer of title to, or establishment of any other legal claims over, the
project site.
Section XI: Long-term Management
A. The Sponsor shall implement the long-term management plan as described in the
site- specific Mitigation Plans.
Stewardship Contact
Unique Places to Save
Post Office Box 1183
Chapel Hill NC 27514-1183
Contact — Michael Scisco
Email - mscisco(a)-unigueplacestosave.org
Phone — 505-603-3636
B. The long-term management plan will include a list of annual maintenance,
monitoring, and/or repair activities for each mitigation site, the associated annual cost
for each activity, and the required total amount necessary to provide all future site
management. The long-term management plan should explain how the funds will be
managed and provided to the designated long-term manager (e.g., an endowment
managed through a separate account holder). The long- term management plan
should include a contingency section that addresses how the responsibility and
funding for the long-term site management will be passed on to a new manager in
the event that the selected long-term management entity is no longer able to provide
for management of the site.
Section XII: Default and Closure
A. It is agreed to establish and maintain the Bank sites until (i) credits have been
exhausted or banking activity is voluntarily terminated with written notice by the
Sponsor provided to the DE and other members of the IRT; and (ii) it has been
determined and agreed upon by the DE and IRT that the debited Bank site has
satisfied all the conditions herein and in the Mitigation Plan. If the DE determines that
the Bank site is not meeting performance standards or complying with the terms of the

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instrument, appropriate action will be taken. Such actions may include, but are not
limited to, suspending credit sales, adaptive management, decreasing available
credits, utilizing financial assurances, and terminating the instrument.
B. As projects developed as part of this bank are specifically intended to restore streams
and/or wetland systems that are subject to periodic flooding and drought conditions,
they should be designed to withstand any such events that are anticipated to occur in
the natural environment. This is not limited to routine or minor flooding or droughts,
but also specifically includes flooding events resulting from hurricanes, or other
extreme weather events as well as extended periods of drought. Additionally, this
includes conditions resulting from sea level rise that adversely impact projects that are
part of this bank.
C. Any delay or failure of Bank Sponsor shall not constitute a default hereunder if and to
the extent that such delay or failure is primarily caused by any act, event or
conditions beyond the Sponsor's reasonable control and significantly adversely
affects its ability to perform its obligations hereunder including: (i) acts of God,
subject to the exceptions contained in Paragraph B above, lightning, earthquake, fire,
landslide, or interference by third parties; (ii) condemnation or other taking by any
governmental body; (iii) change in applicable law, regulation, rule, ordinance or
permit condition, or the interpretation or enforcement thereof; (iv) any order,
judgment, action or determination of any federal, state or local court, administrative
agency or government body; or (v) the suspension or interruption of any permit,
license, consent, authorization or approval. If the performance of the Bank Sponsor is
affected by any such event, Bank Sponsor shall give written notice thereof to the IRT
as soon as is reasonably practicable. If such event occurs before the final availability
of all credits for sale, the Sponsor shall take remedial action to restore the property to
its condition prior to such event, in a manner sufficient to provide adequate mitigation
to cover credits that were sold prior to such delay or failure to compensate for
impacts to waters, including wetlands, authorized by Department of the Army permits.
Such remedial action shall be taken by the Sponsor only to the extent necessary and
appropriate, as determined by the IRT.
D. At the end of the monitoring period, upon satisfaction of the performance standards,
the Sponsor may submit a request to the DE for site close out. The DE, in
consultation with the IRT, shall use best efforts to review and comment on the request
within 60 days of such submittal. If the DE determines the Sponsor has achieved the
performance standards in accordance with the mitigation plan and all obligations
under this MBI, the DE shall issue a close out letter to the Sponsor.
Section XIII: Miscellaneous
A. Modification of this UMBI shall be in accordance with the procedures set forth in 332.8
of the mitigation rule.
B. No third party shall be deemed a beneficiary hereof and no one except the
signatories hereof, their successors and assigns, shall be entitled to seek
enforcement hereof.

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C. This UMBI constitutes the entire agreement between the parties concerning the
subject matter hereof and supersedes all prior agreements or undertakings.
D. In the event any one or more of the provisions contained in this UMBI are held to be
invalid, illegal or unenforceable in any respect, such invalidity, illegality or
unenforceability will not affect any other provisions hereof, and this UMBI shall be
construed as if such invalid, illegal or unenforceable provision had not been contained
herein.
E. This UMBI shall be governed by and construed in accordance with the laws of
North Carolina and the United States as appropriate.
F. This UMBI may be executed by the parties in any combination, in one or
more counterparts, all of which together shall constitute but one and the
same instrument.
G. The terms and conditions of this UMBI shall be binding upon, and inure to the
benefit of the parties hereto and their respective successors.
H. All notices and required reports shall be sent by regular mail to each of the parties at
their respective addresses, provided below.
Sponsor:
Mr. Gary M. Mryncza, P.E.
Senior Vice President
KCI Technologies, Inc
4505 Falls of Neuse Road, Suite 400
Raleigh, NC 27609
Corps:
Mr. Steven Kichefski
U.S. Army Corps of Engineers
Wilmington District, Asheville Field Office
151 Patton Avenue, Suite 208
Asheville, NC 28801
828-271-7980 Ext. 4234
USEPA:
Mr. Todd Bowers
Wetlands Section - Region
IV Water Management
Division
U.S. Environmental Protection
Agency 61 Forsyth Street, SW
Atlanta, Georgia 30303
USFWS:

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Mr. Byron Hamstead
U.S. Fish and Wildlife Service
160 Zillicoa St
Asheville, NC 28801
NCWRC:
Ms. Andrea Leslie
Mountain Habitat Conservation Coordinator
North Carolina Wildlife Resources Commission
645 Fish Hatchery Road, Building B
Marion, NC 28752
NCDWR:
Ms. Erin Davis
Division of Water Resources
North Carolina Department of Environmental
Quality Post Office Box 29535
Raleigh, NC 27626-0535
NCSHPO
State Historic Preservation Office
Ms. Renee Gledhill -Earley
4617 Mail Service
Center 109 E. Jones
Street Raleigh, NC
27699-4617
NMFS:
Ms. Twyla Cheatwood
National Marine Fisheries, NOAA
219 Ft Johnson Road
Charleston, SC 29412
10

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IN WITNESS WHEREOF, the parties hereto have executed this Agreement entitled
"Agreement To Establish the KCI Yadkin 01 Umbrella Mitigation Bank in Surry County,
North Carolina":
Sponsor:
By:
U.S. Army Corps of Engineers:
Digitally signed by
MCLENDON.C.SC MCLENDON.C.SCOTT.1229682
071
OTT.1229682071 Date:2020.05.2608:20:13
By:-04'00'
Date: 05.02.2020
Date:
05/26/2020

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IN WITNESS WHEREOF, the parties hereto have executed this Agreement entitled
"Agreement to Establish the KCI Yadkin 01 Umbrella Mitigation Bank in Surry County
in the State of North Carolina":
U.S. Environmental Protection Agency:
By: Date:
U.S. Fish and Wildlife Service:
By: Date:
N.C. Division of Water Resources:
By: Date:
N.C. Wildlife Resources Commission:
By: Date:
NC State Historic Preservation Office:
By: Date:
National Marine Fisheries Service:
By: Date:
12

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List of Appendices
Appendix A: Geographic Service Area Map
Appendix B: Mitigation Plan (Each plan should include construction costs, maintenance
and monitoring costs, draft copy of financial assurance documents, draft copy of site
protection instrument, and a long term management plan as appendices to the plan.)
13

DEPARTMENT OF THE ARMY
WILMINGTON DISTRICT, CORPS OF ENGINEERS
151 PATTON AVENUE
ROOM 208
ASHEVILLE, NORTH CAROLINA 28801-5006
June 1, 2020
Regulatory Division
Re: NCIRT Review and USACE Approval of the KCI Yadkin 01 Umbrella Mitigation Banking
Instrument (UMBI) - Hair Sheep Site (SAW-2018-00712) Mitigation Sites
Mr. Timothy Morris
KCI Technologies, Inc./KCI Environmental Technologies Construction Inc.
4505 Falls of Neuse Road, Suite 400
Raleigh, North Carolina 27609
Dear Mr. Morris:
This letter is to inform you that the Wilmington District, Corps of Engineers (Corps) has
reviewed and approved the KCI Yadkin 01 Umbrella Mitigation Banking Instrument and the Hair
Sheep (SAW-2018-00712) Mitigation Plan dated May 2, 2020. The Corps has already issued a
Nationwide Permit 27 (NWP 27) verification letter authorizing work in waters of the United States
associated with the restoration, enhancement or preservation of aquatic resources for the mitigation
bank site. As bank sponsor you are required to comply with the approved Yadkin Valley UMBI
and Mitigation Plans, the terms and conditions of your NWP 27 verification letter, and the Corps'
regulations regarding compensatory mitigation (33 CFR 332).
The bank sponsor accepts all risk, liability, and responsibility for the success of all mitigation
activities associated with the approved mitigation bank site. In accordance with the Final
Mitigation Plans, the bank sponsor must prepare and submit annual monitoring reports to
document whether the stream or wetland restoration and enhancement areas for the project site
meet the necessary interim and final performance standards. When credits are debited from the
mitigation site, the bank sponsor must provide the Corps with an updated ledger form identifying
the purchaser of the credits, the project name, the permit number, and the number and type of
credits to be debited. When all stream credits have been consumed, no more credits may be sold
from this mitigation site.
From the Corps' perspective, the next phase in the establishment of the KCI Yadkin 01 UMB
and initial Mitigation Site, include recording the conservation easement to protect the mitigation
site, marking the boundary of the site with permanent signs, and executing the necessary
financial assurances. Once the conservation easements have been recorded and we receive the
required executed financial assurance documents, the Corps will be in a position to approve an
initial credit release for 15% of the total mitigation credits. We look forward to working with you
to ensure these Mitigation Sites comply with the requirements of the approved UMBI and site -
specific mitigation plan.

In all future correspondence concerning this matter, please refer to our file number for the
site Hair Sheep (SAW-2018-00712). If you have any questions regarding this letter, the mitigation
plan review process, or the requirements of the Mitigation Rule, please contact Mr. Steve Kichefski
by email at steven.l.kichefskikusace.army.mil or by phone at [phone] extension 4234.
Sincerely,
KICHEFSKI.STEVEN Digitally signed by
KICHEFSKI.STEVEN.L.1386908539
1.1386908539 Date: 2020.06.01 09:11:22 -04'00'
Steve Kichefski
Project Manager, Asheville Regulatory Field Office
Electronic Copies Furnished:
Mac Haupt (NCDWR)
Erin Davis (NCDWR)
Andrea Leslie (NCWRC)
Byron Hamstead (USFWS)
Todd Bowers (USEPA)
Renee Gledhill -Earley (NCSHPO)
Todd Tugwell (USACE)
Kim Browning (USACE)
Scott Jones (USACE)