20180196 Ver 2_Final MBI for PN_20200817

AGREEMENT TO ESTABLISH THE CATFISH POND II MITIGATION BANKING INSTRUMENT IN THE UPPER
NEUSE RIVER BASIN FOR RIPARIAN BUFFER MITIGATION AND NUTRIENT OFFSET 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............................................................................7
VII.
CALCULATION OF MITIGATION CREDITS..............................................................................9
VIII.
CREDIT RELEASE SCHEDULE................................................................................................11
IX.
PROCEDURE FOR DEBITING AND CREDITING MITIGATION CREDITS..................................12
X.
BANK PARCEL CLOSURE......................................................................................................13
XI.
GENERAL PROVISIONS........................................................................................................14
ATTACHMENTS & REFERENCES
A - Division of Water Resources Authority Document
B — Ledger Templates
1. Nutrient Offset Payment Rule:
httr)://rer)orts.oa h. state. nc. us/ncac/title%2015a%20-%20environ menta 1%20a ua I itv/chapter%2002%20
%20environmenta1%20management/subchapter%20b/15a%20ncac%2002b%20.0703.pdf
2. Riparian Buffer Mitigation Rule:
http://reports.oa h. state. nc. us/ncac/title%2015a%20-%20environ menta 1%20q ua I ity/chapter%2002%20-
%20environmental%20management/subchapter%20b/15a%20ncac%2002b%20.0295.pdf
3. NC Session Law 2019- 86 " Nutrient Offset Credits":
https://ncleg.gov/EnactedLegislation/Session Laws/HTML/2019-2020/SL2019-86.htmi
4. Buffer Interpretation/ Clarification # 2008- 019 for diffuse flow:
https://files. nc.gov/ncdeq/Water%20Quality/Surface%20Water%20Protection/401/Buffer%20CIarification%2
OMemos/Diffuse-Flow-for- Buffer- Mitigation-Sites-Buffer-Clarification-Memo-20080819.pdf
5. Clarified Procedures for Calculating Buffer Mitigation Credits and Nutrient Offset Credits (November
2019):
https://files. nc.gov/ncdeq/Water%20QualitV/Surface%20Water%20Protection/401/Mitigation/Issues---
Resolutions-Ver-1.0-buffer-mitigation-nutrient-offset.pdf
6. NCDWR — Methodology and Calculations for Nutrient Reductions on the Bank Parcel:
https://files.nc.gov/ncdeq/Water%20Quality/Planning/NPU/Nutrient%20Offset%20Rule/Ag-Buffer-Credit.pdf
1

I. PREAMBLE
This Mitigation Banking Instrument ("Instrument") regarding the establishment, use, operation, and
maintenance of the Catfish Pond 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 November 1, 2015 (Reference Numbers 1 and 2).
The purpose of the Bank is:
A. To restore, enhance and preserve riparian vegetation adjacent to mitigated streams and/or
agricultural ditches with the intent to improve water quality 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 agricultural
ditches into a dense, hardwood vegetated state with the intent to significantly reduce nutrient
loadings associated with agricultural practices into streams and ditches.
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 Catfish Pond II Bank Parcel is comprised of land in Durham County, NC, lying adjacent to an
existing conservation easement for the NC Division of Mitigation Services Full -Delivery Mitigation
Site (Catfish Pond Full Delivery Mitigation Site, DMS ID# 100039) and is currently used for cattle
pasture, row crops, and forest land. The project is located at 36.16334167 N and 78.91027778
W. The Bank Parcel is located in the Upper Falls Lake Watershed of the Neuse River Basin.
C. 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.
D. Sale or transfer of Riparian Buffer Credits shall be limited to the 8-digit HUC 03020201 of the
Neuse River Basin unless otherwise authorized by the DWR or delegated local government in
accordance with 15A NCAC 02B .0295.
2

E. 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 .0703 unless otherwise
authorized by the DWR in accordance with Session Law 2019-86.
F. Unnamed tributaries to Catfish Creek 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, 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 (Catfish Creek Full Delivery Mitigation Site, DMS ID# 100039) and will
be applied, under this instrument, to the Catfish Creek 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 Letter is not an approval of the site to generate
Riparian Buffer Credits or 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,
Preservation, 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:
3

Table 1.0 — Site Viability Letter Details
Viability LetterExpiration
Bank Parcel
NC DWR Site Evaluation
Viability Letter Received
Date
February 23, 2018
March 13, 2018
March 13, 2020
Catfish Creek
February 18, 2020 (site
February 19, 2020
photos provided, no site
(extension of initial
September 13, 2020
visit)
viability letter)
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. Riparian Buffer Credits on this Bank Parcel will be generated along restored and enhanced stream
channels that are proposed for stream mitigation as well as one agricultural ditch that is directly
hydrologically connected to a mitigated stream. 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 Catfish Pond Full Delivery Mitigation Plan (DMS# 100039) and not before. Riparian Buffer
Credit may be achieved through restoration of DWR riparian buffers as they are defined in 15A
NCAC 02B .0714, 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 riparian restoration
site, enhancement site and preservation site is at least 20 feet from top of bank of streams and a
minimum of 50' from top of bank along ditches.
F. The Bank Parcel is intended to provide Neuse River Basin Buffer Mitigation as follows:
1. Planting hardwood trees and shrubs on a Restoration Site as defined in 15A NCAC 02B
.0295 (b) adjacent to mitigated streams.
2. Planting hardwood trees and shrubs on a Restoration Site as defined in 15A NCAC 02B
0295 (b) adjacent to a ditch as allowed in 15 A NCAC 02B .0295 (o).
3. Diffused flow will be maintained onsite to the maximum extent practicable.
4. Enhancing riparian areas adjacent to mitigated streams that are being grazed by cattle
as allowed in 15A NCAC 02B .0295 (o)(6), by installing fencing around the perimeter of
the mitigation site to permanently remove cattle out of the riparian areas and streams
where they currently have access.
M

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.
H. The Bank Parcel is expected to provide Nutrient Offset Credits in accordance with 15A NCAC 02B
.0703 and are expected to provide Nutrient Offset Credit as follows:
1. Converting agricultural land uses within riparian areas to non-agricultural land uses.
2. Planting hardwood trees on a Restoration Site, as defined in 15A NCAC 2B .0295(b)
adjacent to mitigated streams and a ditch where agriculture has been determined by
DWR to be the predominant land use.
3. Placing a conservation easement around restored riparian areas along streams and a ditch
in accordance with 15A NCAC 02B .0703 (g).
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 for that specific Bank Parcels.
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 Durham County Register of Deed's office that is sufficient to ensure protection, operation,
E

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.
G. The conservation easement for the Bank Parcel will be located adjacent to the Catfish Pond Full
Delivery Conservation Easement. The Full Delivery's easement will include the mitigated streams
and will extend at minimum 50 feet from the top of bank of the project streams. The Bank Parcel's
conservation easement will protect the riparian areas adjacent to mitigated streams and one ditch
beyond the 50' out to a maximum of 200'.
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.
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 BPDP. 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 mitigation 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 K and L of this section:
0

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
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 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 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 Catfish Pond 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 that was included in the approved BPDP.
Financial Assurance
C. After completion of the restoration/construction 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.
7

D. A Performance/Maintenance Bond shall be secured each year for a minimum of five years, and
until DWR has released all 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.
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 Vill, 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.
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.
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 Parcel and
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) following the guidance provided in the Clarified Procedures for
Calculating Buffer Mitigation Credits and Nutrient Offset Credits letter issued by the DWR
including the most recent Project Credit Table Template.
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) and
defined in 15A NCAC 02B .0295(b) 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 Site following the
guidance provided in the Clarified Procedures for Calculating Buffer Mitigation Credits and
Nutrient Offset Credits issued by the DWR including the most recent Project Credit Table
Template. All riparian areas proposed for Nutrient Offset Credits must be a minimum of 50 feet
from the top of the stream or ditch banks on land noted in a Site Viability Letter as agriculture.
F. Nutrient Offset Credits cannot be achieved through enhancement activities performed on this
Bank Parcel under 15A NCAC 2B .0295(o)(6).
G. Nutrient Abatement of Restored Riparian Area/Buffers on agricultural lands: The Sponsor and
DWR agree to the following:
0

1. The pounds of nitrogen offset per acre of restored riparian areas/buffers on agricultural
land shall be 2,273.02 pounds per acre or 19.16394 square feet per pound.
2. The pounds of phosphorus offset per acre of restored riparian areas/buffers on
agricultural land shall be 146.4 pounds per acre or 297.54099 square feet per pound.
H. The Sponsor and DWR agree that the methodology and calculations for determining nitrogen and
total phosphorus reductions, associated with restoration 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 the Bank Parcel. For further details on the approved method and calculations for
determining nutrient reductions associated with the riparian restoration on this Bank Parcel refer
to the NCDWR - Methodology & Calculations for Nutrient Reductions document found in
reference number 6.
This space left blank intentionally, do not add text to this space.
10

Vill. 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 selling 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
Instrument and BPDP Approved by DWR, Full Delivery Mitigation
1
Plan Approved by DWR, Conservation Easements Recorded* and
20
Financial Assurance Posted
Mitigation Site Earthwork, Planting and Installation of Monitoring
2
Devices Completed for both the Catfish Pond Full -Delivery site
20
(DMS ID#100039) and the Bank Parcel.
Monitoring Financial Assurance Posted and Approval of As -Built
3
10
Report
Monitoring Report #1: Approved by the DWR** & financial
4
assurance renewed
10
Monitoring Report #2: Approved by the DWR** & financial
5
assurance renewed
10
Monitoring Report #3: Approved by the DWR** & financial
6
assurance renewed
10
Item B(1) of Section X in this Instrument has been completed and
7
approved by DWR
5
No remaining credits will be released until the conservation easement has been assigned to
an approved land trust or stewardship
Monitoring Report #4: Approved by the DWR** & financial
8
assurance renewed
5
Monitoring Report #5: Approved by the DWR** and final site visit
9
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 success criteria
contained within the approved BPDP
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.
11

IX. PROCEDURE FOR DEBITING AND CREDITING MITIGATION CREDITS
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 Nutrient Offset Credits in pounds and
square feet.
B. Each credit ledger shall be submitted on a separate 8 % in. x 11in. spreadsheet with legible font
style and font size. All ledgers shall be submitted using the templates provided in Attachment B
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).
D. Nutrient Offset Credits generated on this Bank Parcel can be provided to offset nutrient loadings
within the Upper and Lower Falls Lake 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
Available Riparian Buffer Credits (credits that have been released by DWR but not sold by the
Sponsor) that 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 to 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.
Available Nutrient Offset Credits (credits that have been released by DWR but not sold by the
Sponsor) that are generated 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.
G. Riparian Buffer Credits generated under 15A NCAC 02B .0295 (o)(6) on this Bank Parcel are not
transferrable to Nutrient Offset Credits.
H. Credit conversions must be calculated using the guidance provided in the Clarified Procedures for
Calculating Buffer Mitigation Credits and Nutrient Offset Credits letter issued by the DWR.
12

I. The Bank Sponsor shall obtain verification of nutrient offset need from a designated local
government in the Falls Lake Watershed, or from DWR through an approved NPDES permit for
wastewater nutrient sources, prior to debiting Nutrient Offset Credits from the Bank Parcel.
J. 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.
K. 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 10" 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
L. 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.
2. Credit Details: (1) date of receipt, (2) identify if full or partial payment, and (3- when
applicable) amount of nitrogen and/or phosphorus 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 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.
M. If the DWR determines the Bank is operating at a deficit (e.g. the Sponsor is closing on sales 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.
13

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.
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,
14

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.
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.
150 B.
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
If to DWR: NC Division of Water Resources — 401 & Buffer Permitting Branch
Attn: Nutrient Offset & Buffer Mitigation Banking Coordinator
1617 Mail Service Center
Raleigh, NC 27699-1617
15

L. Applicable Law: This Agreement shall be construed under the laws of the State of North Carolina.
Wildlands Holdings V, LLC
By: Shawn Wilkerson (Print)
ot. (Signature)
k�
President of Wildlands Engineering,
Title: Manager of Wildlands Holdings V, LLC
Date: 8/14/2020
NORTH CAROLINA DEPARTMENT OF ENVIRONMENTAL QUALITY -DIVISION OF WATER RESOURCES
By:
Title:
Date:
16
(Print)
(Signature)

Updated August
Nutrient Offset Program & Buffer Mitigation Program 12, 2020
Authorities for Falls Lake WS MBI
ATTACHMENT A
Authorities pertaining to the Catfish Pond II 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. 2019-86 (Amendment to G.S. § 143-214.26)
S.L. 2016-94
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 .0701 Nutrient Strategies Definitions
15A NCAC 02B .0703 Nutrient Offset Credit Trading
15A NCAC 02B .0295 Mitigation Program Requirements for Protection and Maintenance of Riparian Buffers
Neuse River Basin Buffer and Falls Lake Nutrient Strategy
General Statutes and Session Laws:
G.S. § 143-214.5 Water Supply Watershed Protection
S.L.2012-187
S.L. 2011-394
S.L. 2009-486
S.L. 1998-221 (Part I)
Administrative Rules.
15A NCAC 02B .0610 Managing Activities within Riparian Buffers: Definitions
15A NCAC 02B .0611 Managing Activities within Riparian Buffers: Authorization Certificates
15A NCAC 02B .0612 Managing Activities within Riparian Buffers: Forest Harvesting Requirements
15A NCAC 02B .0714 Protection and Maintenance of Existing Riparian Buffers
15A NCAC 02B .0715 Delegation of Authority for the Protection and Maintenance of Existing Riparian Buffers
15A NCAC 02B .0275 Purpose and Scope
15A NCAC 02B .0276 Definitions
15A NCAC 02B .0277 Stormwater Management for New Development

15A NCAC 02B .0278 Stormwater Management for Existing Development
15A NCAC 02B .0279 Wastewater Discharge Requirements
15A NCAC 02B .0280 Agriculture
15A NCAC 02B .0281 Stormwater Requirements for State and Federal Entities
15A NCAC 02B .0282 Options for Offsetting Nutrient Loads

Aft-k
ao
c
a
w
m
m
�
y
>
O
Q
V
z
V
w
f6
�
a
m
v
V
y
O O
O
W
W
C O
z
ao
©
Y
f6
m
w
O
a
LL
O
\
v
W
O
�
z
O
++
VI
V
7
O
a
c
v
E
w
w
c
•�
a
bn m
\ Y
>
C �
N f6
v
p N
O O
z
j
cn v io
N
+
"a
7 z
a°
V
y
t y O 0
N
O W ESL
v v
� � 0
Z p fu
z
QCL
E
V
m D
z
C
�c
� O
y
V
7
z ON
W
Q
O
- m
a
O O
V
c V
O
O D
LL =
O
LL
L
06
N
V
N
'6
O
K
71
f6
w
71
�
E
�
++
i
f0
w
O
V
�
i
O
N
71
O
O
y�
N
s
V
7
a
Y
�
w
m
w w
�
m m
� O
71
O
F
71
ATTACHMENT B

Aft-k
ao
c
a
w
m
m
�
++
>
O
p
V
z
V
w
(6
�
a
m
v
C
o O
w
v s
c a
J�
�
0
o 0
Z
a a
©
Y
f6
m
w
O
a
LL
O
Ln
v
2
y
N O
p
C O.
v
O
° O
�
y
aa
V
c
�
N
�
W
w
�
GO m
Q
Y >
w �
co
�
3
co N
O
O
O =
_
W
N O
N
C Q
m Z
a
0
O
0
N
GO U/ l0
to m
-O
i
0
a a
N p
V
o
Y
Y
a,
0 N Q O
V
J
O in O
Z m t a 0
LL O_ f0
O
Q L
Q
E
7 Q
V
co
c-I
V O
V
�
O O
W
Z N
O
Q
= m
a
—
m
6 O
V
c V
c
O D
a- =
C
06
N
V
�
O
N
�
71
(6
71
�
71
�
++
i
N
w
O
V
�
i
O
N
71
O
O
yf
(6
s
V
7
a
Y
�
w
m
� p
�
w w
�
m m
O
O
�
71
F
71
ATTACHMENT B

ao
3
0
z
c
3
O'
W
K
O
H
aQ
m
�LL
J 1.4
m
s
m
o
0
i
�
d
d
c
d
u`
d
�
d
3
c
d
d
a"
a
� s
d
d
d
z
LL
d
v
Y C
V
3
C
OD m
C �
C �
l0 �
m U1
C �
O N
OD
zw O
O
U1 -O v a0+ �'
w U Q
W
m
N
'p
a`
v 3
m � m
v o
� N
N O
Z �
- m
-O O
CJ
C
O �
2 =
L
_
N
C
U
W
J
Q
C
�
W
�
C
N
W
u
O
�
O
N
W
m
t
o.
�
N
N
w
o
v
C
O
U
F
W
N
Ol
W W
O
W
W
K
N
N
O
F
ATTACHMENT B

ao
3
0
z
c
3
O'
W
K
O
H
aQ
m
�LL
J 1.4
m
s
m
o
0
i
�
d
d
c
d
u`
d
�
d
3
c
d
d
a"
a
� s
d
d
d
z
LL
d
v
Y C
V
3
C
OD m
C �
C �
l0 �
CO U1
C � `
O N N
OD U1 v >
U O N 0
�
W
w L U -O
7
v
Cit
v
N
V
�O
LL C
N �
Q w 0
� � J
m
ri m
N O
� N
N O
Z �
- m
-O O
C
O D
2 =
L
_
N
C
U
W
J
Q
C
�
W
�
C
N
W
u
O
�
O
N
W
m
t
d
N
N
w
o
v
C
O
U
F
W
N
Ol
W W
O
W
W
K
N
N
O
F
ATTACHMENT B