20150636 Ver 1_Credit Release Task 6 (final)-phase I_20200720

DocuSign Envelope ID: 02F22B3E-D8FA-4lA3-A459-55DE005FCB2E
ROY COOPER
Governor
MICHAEL S. REGAN
Secretary
S. DANIEL SMITH
Director
Mike Hermann
Watershed Investments NC, LLC
1630 Weatherford Circle
Raleigh, NC 27604
NORTH CAROLINA
Environmental Quality
July 14, 2020
DWR Project #: 2015-0636
Orange County
Re: Neville Farms Mitigation Bank Instrument (MBI)
Neville Farms Phase I Bank Parcel Credit Release — Task 6 (final)
Dear Mr. Hermann:
On February 18, 2020, the Division of Water Resources (DWR) issued a partial credit release of 5%
to Watershed Investments NC, LLC (WINC) for the subject site out of concerns that the vegetation
was not meeting success criteria. In order to determine if the remaining 5% of the credit release for
Task 6 could be issued, DWR performed a site visit on July 11, 2020 to assess vegetation conditions
on Phase I and Phase IL DWR determined onsite that the plot data submitted with the Year 3
Monitoring Report accurately represented the condition of the planted vegetation on both Phase I and
Phase II and that WINC would need to submit an Adaptive Management Plan prior to receiving the
remaining credit release for Task 6. DWR received an Adaptive Management Plan on July 12, 2020.
By copy of this correspondence, DWR approves the Adaptive Management Plan, which is attached
to this letter for reference. Future credit releases will be dependent on successful implementation and
completion of the approved Adaptive Management Plan.
On January 28, 2020, DWR received a continuation certificate for performance bond
(#CE00155800021) issued to WINC to cover monitoring and maintenance at the subject site. The
term of this bond applies through February 21, 2021. Therefore, WINC is required to renew the
performance bond prior to February 21, 2021 and is required to renew the bond annually for at least 2
more years. Future credit releases will be dependent on both the renewal of this performance bond
and the approval of the annual monitoring reports.
According to the MBI signed on January 7, 2016, the following Project Milestones for Phase I have
been fully met, and the corresponding credits shall be released:
Task/Milestones
6) Monitoring Report #3: Approved by the DWR (final)
Credit
5%
By copy of this correspondence, DWR confirms that you have fully satisfied the above requirements
for the above -referenced tract. Therefore, 5% of your Jordan Lake riparian buffer Preservation
credits (0.05 x 1,742.4 ft2 = 87.12 W) are now available for sale. Additionally, 5% of your
generated nitrogen nutrient offset credits (0.05 x 8,113.03 lb-N = 405.65 lb-N) are now available to
sell. Finally, 5% of your generated phosphorus credits (0.05 x 537.85 lb-P = 26.89 lb-P) are now
D E Qbi�� North Carolina Department of Environmental Quality I Division of Water Resources
512 North Salisbury Street 1 1611 Mail Service Center I Raleigh, North Carolina 27699-1611
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DocuSign Envelope ID: 02F22B3E-D8FA-41A3-A459-55DE005FCB2E
Neville Farms
Phase I
July 14, 2020
available to sell. Generated credits are credits that have not been applied to the appropriate delivery
factor.
The delivery factors applied to this bank due to its location in the 14-digit HUC 03030002060070 are
89% for nitrogen and 79% for phosphorous. Therefore, the total amounts of nutrient offset credits
for this site after application of delivery factors are 7,220.59 lb-N delivered and 424.90 lb-P
delivered. By copy of this correspondence, 5% of your delivered nitrogen offset credits (0.05 x
7,220.59 lb-N = 361.03 lb-N) are now available to sell. Additionally, 5% of your delivered
phosphorus credits (0.05 x 424.90 lbs-P = 21.25 lbs-P) are now available to sell. Please update your
credit ledgers accordingly.
Please note that only the delivered nutrient offset credits can be sold from this bank and must
be used for authorized impacts in the Upper New Hope Sub -watershed. Additionally, the
riparian buffer credits must be used for authorized impacts in the Upper New Hope Sub -
watershed according to guidelines in the Consolidated Buffer Mitigation Rule, 15A NCAC
02B .0295, which became effective on November 1, 2015. Buffer Preservation credits cannot be
converted into nutrient offset credits.
Please feel free to call Katie Merritt at [phone] if you have any questions regarding this
correspondence.
PW/kym
Attachments: Adaptive Management Plan
cc: File Copy (Katie Merritt)
Sincerely,
DOCUSigned by:
949D91 BA53EF4E0...
Paul Wojoski, Supervisor
401 and Buffer Permitting Branch
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