20090125 Ver 2_Staff Comments_20101202

Bill Mullin
From: Matt Fisher [MattFisher@earthmark. us]
Sent: Thursday, December 02, 2010 4:04 PM
To: [e-mail]
Subject: Stream Mitigation
Bill:
Sorry for the delay in your receiving this information.
Per out conversation, Forrest Creek Mitigation Bank currently has immediate stream mitigation credits available to
offset impacts within Neuse 01. .
Stream Mitigation Credits are currently being sold for $335 per credit. The process for reservation and transfer of
credits are below.
There are (4) documents that are involved with the transfer of credits from an approved mitigation bank.
1. Credit Sales Agreement
2. Statement of Availability
3. Credit Transfer Certificate
4. Credit Ledger
Upon determination by applicant representative that credits from FCMB is applicable and that the bank credit will be
used to meet mitigation requirements in permit application, the following course of action is taken:
• Bank Sponsor and the Applicant will enter into a "Credit Sales Agreement" that legally transfers mitigation
liability to the banker upon full and final execution of legal documents and receipt of financial deposit. Normally
30% of total sale.
• Upon initial execution and receipt of deposit, a "Statement of Availability" from the Bank Sponsor is provided to
the applicant and the regulatory agencies confirming that the applicant has legally secured mitigation credits
and that the Bank Sponsor will be legally responsible for providing the amount of credits required upon permit
issuance. The "Statement of Availability" commonly referred to as the "Reservation Letter" references the
amount of credits reserved, type of credits reserved (if multiple types exist), applicants permit application
number, name of project, and the name of purchaser.
• The Applicant provides a copy of the "Statement of Availability" along with permit application to the regulatory
agencies as proof of that the applicant has entered into a contract to purchase the credits pending approval.
• Upon approval of permit, the applicant has 10 days to fully execute "Credit Sales Agreement" by funding
remaining balance of "Credit Sales Contract".
• Typically, the applicant has 60 days to provide proof to the regulatory agencies that the credit purchase is
funded as a condition of the permit approval.
• Upon full funding and final execution, the Bank Sponsor has 5 days to provide the applicant with a "Credit
Transfer Certificate" along with a copy of the bank "Credit Ledger" showing the debit from the bank available
credits referenced by permit application number. This document must be presented to the ACOE to allow any
ground construction to commence outlined in the permit. The Credit Transfer Document is proof to the ACOE
that this procedure is executed in full.
• A copy of the "Credit Transfer Certificate" and the "Credit Ledger" will be electronically sent to ACOE reviewer
for proof of final execution by the banker as well.
• At this time the transaction is complete.
The next step is to enter into a Credit Sales Agreement. To draft up the agreement the following information is needed.
• Client or entity that will be purchasing the credits
• Contact information
• Number of, and type of, credits required
• Permit application no if available
Bill, if any more information is needed please let me know.
Matt Fisher
EarthMark Mitigation Services
Regional V.P Director of New Business Development
1960 Derita Rd, Concord NC 28027
Mobile: [phone]
Office: 704-782-4133 Ext 100