20090858 Ver 2_Approval Letter_20130220

AF -W1VJ
Ga
NCDENR
North Carolina Department of Environment and Natural Resources
Division of Water Quality
Pat McCrory Charles Wakild, P.E.
Governor Director
February 20, 2013
Mr. Thomas Rinker
EBX -EM, LLC
909 Capability Drive, Suite 3100
Raleigh, NC 27606
Re: Financial Assurance Reduction Approval
Carl Lloyd Bank Parcel
Dear Mr. Rinker:
John E, Skvarla, III
Secretary
DWQ Project #2009 -0858 v2
Orange County
On February 11, 2013, the Division of Water Quality (DWQ) received a request for approval to reduce
the financial assurance required for the monitoring and maintenance performance obligations of EBX-
EM, LLC for the Carl Lloyd Nutrient Offset mitigation bank in Orange County, North Carolina. Since
your request aligns with the implementation of the financial assurance provisions of your Cape Fear
Riparian Buffer and Nutrient Mitigation Umbrella Banking Instrument (UBI), we will allow the
following:
DWQ approved the second annual monitoring report for the subject mitigation bank on December 18,
2012 and submitted a credit release letter documenting the approval. Therefore, your request to reduce
the financial assurance (Bond No. 105 5408) from $100,000 to $60,000.00 from Lexon Insurance
Company (Lexon) is hereby approved. This reduction is 40% of the original Performance Bond amount
of $100,000.00, which was modified with a Bond Rider from $100,000 to $80,000 on July 27, 2011 by
Lexon. Additionally, following DWQ approval of future monitoring reports, you may request an
additional 20% bond reduction as long as the site still meets DWQ success criteria. This site has at least 4
more years of monitoring and maintenance.
Please feel free to contact Katie Merritt at (919) 807 -6371 if you have any questions regarding this
correspondence.
KAH/kym
cc: File copy (Katie Merritt)
Tommy Cousins (via electronic mail)
Wetlands, Buffers, Stormwater, Compliance and Permitting Unit
1650 Mail Service Center, Raleigh, North Carolina 27699 -1650
Location: 512 N. Salisbury St., Raleigh, North Carolina 27604 (9u1 Floor)
Phone: 919 - 807 -6301 1 FAX: [phone]
Internet: http: l/ portal.ncdenr.org /weblwq /swp /ws /webscape
An Equal Opportunity \ Affirmative Action Employer
Sincerely,
t
Karen Higgins, Supervisor
Wetlands, Buffers, Stormwater, Compliance and
Permitting Unit
NorthCarolina
Naturally