20071843 Ver 1_Mitigation Information_20131010

Strickland, Bev
From: Kulz, Eric
Sent: Thursday, October 10, 2013 2:18 PM
To: Strickland, Bev
Subject: FW: Executed Amendment of the MBI for Stone Farm Mitigation Bank (UNCLASSIFIED)
Attachments: document2013- 10- 10- 1341 11.pdf; document2013- 10- 10- 134215.pdf
17 -0843
Eric W. Kulz
Environmental Senior Specialist
401 and Buffer Permitting Unit
NCDENR - Division of Water Resources - Water Quality Programs
1650 MSC
Raleigh, NC 27699 -1650
Phone: [phone]
E -mail correspondence to and from this address may be subject to the North Carolina Public
Records Law and may be disclosed to third parties
- - - -- Original Message---- -
From: Sugg, Mickey T SAW [ mailto :Mickey.T.Sugg(@usace.army.mil]
Sent: Thursday, October 10, 2013 1:55 PM
To: Fritz Rohde - NOAA Federal; Bowers, Todd; Matthews, Kathryn; Dunn, Maria T.; Wilson,
Debra; Kulz, Eric; Coburn, Chad; Wilson, Travis W.
Cc: Christian Preziosi; Tugwell, Todd SAW; George Fletcher; Michael Satterfield; Pruitt, Carl
E SAW
Subject: Executed Amendment of the MBI for Stone Farm Mitigation Bank (UNCLASSIFIED)
Classification: UNCLASSIFIED
Caveats: NONE
Signed the MBI amendment today, and you should be receiving a letter soon. 2nd pdf is the
Exhibits for the MBI.
- mickey
Mickey Sugg, Project Manager
U.S. Army Corps of Engineers
69 Darlington Avenue
Wilmington, NC 28403
(910) 251 -4811 (direct line)
(910) 251 -4025 (fax)
Classification: UNCLASSIFIED
Caveats: NONE
1

AMENDMENT TO THE
MITIGATION BANKING INSTRUMENT
STONE FARM REGIONAL MITIGATION BANK
IN BRUNSWICK COUNTY, NC
1.0 PREAMBLE
This Amendment to the Mitigation Banking Instrument (MBI) is made and entered into
on the !o day of OC,7- 20 (3 , by Stone Farm Investment, LLC, hereinafter Sponsor,
and the U.S. Army Corps of Engineers (USACE), and each of the following agencies,
upon its execution of this Amendment to the MBI, the U.S. Environmental Protection
Agency (EPA), the U.S. Fish and Wildlife Service (USFWS), the National Marine
Fisheries (NMFS), the North Carolina Wildlife Resources Commission (NCWRC), North
Carolina Division of Water Quality (NCDWQ), and the North Carolina Division of
Coastal Management (NC DCM). The USACE, together with the State and Federal
agencies that execute this Amendment to the MBI, are hereinafter collectively referred to
as the Interagency Review Team (IRT).
WHEREAS this Amended Agreement is an amendment to the previously executed
Mitigation Banking Instrument (MBI) made and entered into on the 5th day of January
2009 by Ocean Isle Investment Co. and the IRT;
WHEREAS, as part of a division of the assets of Ocean Isle Investment Co. by its
owners, Ocean Isle Investment Co. will ultimately be dissolved. Stone Farm Investment,
LLC has been formed to be the successor bank sponsor and property owner with regards
to the property assolJlated VVIL11 Q.bove rellirell�.ed 1viBi. The purpose of Lhls A�rlended
Agreement is for Stone Farm Investment, LLC to assume the rights, obligations and
responsibilities to as it relates to the operation of the Stone Farm Regional Mitigation
Bank as a general -use bank site providing compensatory mitigation of unavoidable
wetland and stream impacts separately authorized by Section 404 Clean Water Act

(CWA) permits and /or Section 401 Water Quality Certifications in appropriate
circumstances;
WHEREAS the Sponsor shall be the record owner of fee simple title to that certain tract
of land encompassing 967.82 total acres (comprising approximately 928.7 acres of
compensatory mitigation and 39 acres of upland buffer) located in Brunswick County,
North Carolina, described in the March 20, 2008 Stone Farm Regional Mitigation Bank
Wetlands and Stream Mitigation Plan (Mitigation Plan) and the amended plans for Phase
2 and Phase 3 (see Exhibit A), and as shown on the attached recorded conservation
easement plat (Exhibit B); and
WHEREAS the agencies comprising the IRT agree that the Stone Farm Regional
Mitigation Bank site is a suitable mitigation bank site, and that the implementation of the
Mitigation Plan (with authorized amendments) is likely to result in net gains in wetland
and stream functions at the Bank site, and have therefore approved the Mitigation Plan
and amendments for Phase 2 and Phase 3;
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
Amendment to the MBI.
2.0 GENERAL PROVISIONS
1. The goal of the Stone Farm Regional Mitigation Bank is to restore, enhance,
and preserve pocosin/Carolina bay wetland, headwater swamp wetland, small stream
swamp wetland, and Coastal Plain stream systems and their functions and values to
compensate for unavoidable wetland and stream impacts authorized by Section 404 of the
CWA permits or Water Quality Certifications deemed appropriate by the USACE or
NCDWQ after consultation, through the permit review process, with members of the
IRT.
2

2. Within a reasonable time after the execution of this Amendment to the MBI,
Stone Farm Investment, LLC sllall conclude the acquisition of fee simple title to ail real
estate comprising the Mitigation Bank, and the transfer of all other mitigation bank
obligations from Ocean Isle Investment Co. Stone Farm Investment, LLC shall provide
copies of all General Warranty Deeds and /or other transfer documents to USACE and the
IRT. If USACE determines that Stone Farm Investment, LLC has not complied with the
terms of this provision, appropriate action will be taken. Such actions may include, but
are not limited to, suspending credit sales, and terminating the instrument;
3. Use of credits from the Bank to offset wetland and stream impacts authorized
by CWA permits or 401 Water Quality Certifications must be in compliance with the
CWA 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 Amendment to the MBI 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 ").
4. The IRT shall be chaired by the representative from the USACE, Wilmington
District. The IRT shall review monitoring and accounting reports more fully described in
Section 3.0 below. In addition, the IRT will review proposals for remedial actions
proposed by the Sponsor, or any of the agencies represented on the IRT. The IRT's role
and responsibilities are more fully set forth in Sections II.C, 3 & 6 of the Guidance. The
IRT will work to reach consensus on its actions.
5. The USACE, 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 stream impacts, and whether or not the use of credits from the Banks site 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, NCDWQ will determine the amount of credits that can be withdrawn
I
rom the Bank.
6. The parties to this MBI 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.
3.0 MITIGATION PLAN
7. The Stone Farm bank site is composed of approximately 928.7 acres (ac) of
former Carolina bay, headwater swamp forest, small stream swamp wetland communities
and 23,808 linear feet (If) of degraded Coastal Plain streams. An additional 25 -ft upland
buffer (totaling 39 acres) around the perimeter of the restored, enhanced, and preserved
wetlands will be restricted as part of the conservation easement. The purpose of project
is to provide riverine and non - riverine wetland restoration, enhancement and preservation
and stream restoration. A more detailed description of existing site conditions is
contained in the Mitigation Plan.
7. The Sponsor has completed all work, with the exception of Phase 4, as
described in the Mitigation Plan and authorized amendments for Phase 2 and Phase 3.
The bank site includes 399.9 acres of wetland restoration (177.5 ac of riparian (non-
riverine) wetlands and 222.4 acres of non - riparian wetlands), 178.4 acres of wetland
enhancement (all non - riparian wetlands), and 350.4 acres of wetland preservation (323.8
acres of non - riparian wetlands and 26.6 acres of riparian (non - riverine) wetlands). Site
modifications will be done in accordance with the approved Mitigation Plan and
approved amendments.
8. The Sponsor shall monitor the Bank Site as described in the monitoring section
of the Mitigation Plan and as amended in Exhibit C (Monitoring Plans for Phase 2 and
Phase 3). The Bank Site will be monitored for a five (5) year period after implementation
4

is completed or until such time as the IRT determines that the Success Criteria have been
met, whichever occurs later.
9. The Sponsor is responsible for assuring the success of the restoration,
enhancement and preservation activities at the Stone Farm site, and for the overall
operation and management of the Bank.
10. The Sponsor shall provide the reports described in the monitoring section of
the Mitigation Plan to each member of the IRT.
11. USACE shall review said reports and may, at any time, after consultation
with the Sponsor and the IRT, direct the Sponsor to take remedial action at the Bank Site.
Remedial action required by USACE shall be designed to achieve the success criteria
specified in the monitoring section of the Mitigation Plan and Exhibit C. All remedial
actions required under this paragraph shall include monitoring criteria and a work
schedule that will take into account physical and climatic conditions.
12. The Sponsor shall implement any remedial measures required pursuant to the
above paragraph.
13. In the event the Sponsor determines that remedial action may be necessary to
achieve the required monitoring and maintenance criteria, 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 USACE, in consultation with the IRT.
14. 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.

4.0 USE OF MITIGATION CREDITS
15. The Geographic Service Area (GSA) is the designated area wherein a bank
can reasonably be expected to provide appropriate compensation for impacts to wetland
and /or other stream or aquatic resources. The Stone Farm Regional Mitigation Bank is
situated on the boundary of the Coastal Carolina unit of the Lumber River Basin (USGS
Hydrologic Unit 03040207) and the Waccamaw Unit (USGS Hydrologic Unit
03040206). Since the Stone Farm site is situated on the boundary of two 8 -digit
cataloging units, the GSA of this Bank shall include a subset of 14 -digit HUCs occurring
within the vicinity of the Stone Farm site as listed in Table 1 of this document. Refer to
Figure 2 for the location and extent of the GSA. Use of a Bank Site to compensate for
impacts beyond the geographic service area may be considered by the Corps or the
permitting agency on a case -by -case basis.
16. The Mitigation Plan (with approved amendments) is intended to result in the
forms and amounts (in acres or linear feet) of wetland and stream compensatory
mitigation as depicted in Table 2(a) through Table 2(d). Successful implementation of
the Mitigation Plan (with approved amendments) will result in the establishment of
23,808 if of stream restoration, 177.5 ac of riparian (non - riverine) wetland restoration,
26.6 acres of riparian (non - riverine) wetland preservation, 222.4 acres of non - riparian
wetland restoration, 178.4 acres of non - riparian wetland enhancement, and 323.8 acres of
non - riparian wetland preservation.
Table 1. List of 14 -digit watersheds within Geographic Service Areal
14 —Digit Hydrologic Unit Code (HUC)
3040206060020
3040206060030
3040206060040
Based upon standard mitigation guidelines (including those set forth by NCDENR and the NC EEP, the
Bank may be suitable for providing compensatory mitigation for wetland impacts occurring anywhere
within the same 8 -digit hydrologic unit (03040207 — Lumber River Coastal Carolina). Therefore, use of
the Bank for compensatory mitigation will also be considered outside of the 14-digit units listed above
upon review and analysis of other mitigation alternatives at the time of permit issuance.
ti

3040206060010
3040206060060
3040206060050
3040206040010
3040206102010
3040206050010
3040206090010
3040207020060
3040206090020
3040207020090
3040207020070
3040207020110
3040207020080
3040207020100
3040207020120
Table 2a. Mitigation Type and Quantity — (Phase 1)
Mitigation Type
Area/Distance
Mitigation Credit
Credits
(acres)
Ratio
Non - Riparian Wetland
Restoration
145
1:1
145
(Pocosin/Carolina
Bay)

Table 2b. Mitigation Type and Quantity — (Phase 2)
Mitigation Type
Area/Distance
Mitigation Credit
Credits
(acres /If)
Ratio
Riparian (Non -
38.9
1:1
38.9
riverine) Wetland
100.5
1:1
100.5
Restoration (Small
Stream Swamp)
Riparian (Non -
68.0
2:1
34.0
riverine) Wetland
26.6
7:1
3.8
Preservation (Small
Stream Swamp)
Non - Riparian Wetland
85.0
7:1
12.1
Restoration (Swamp
38.5
1:1
38.5
Forest)
Non - Riparian Wetland
191.9
N/A
85
Enhancement (Swamp
62.4
2:1
31.2
Forest)
Non - Riparian Wetland
Preservation (Swamp
146.8
7:1
21
Forest)
Total Non - Riparian
247.7
N/A
90.7
Wetland Mitigation
Total Riparian
127.1
N/A
104.3
Wetland Mitigation
Stream (First Order)
15,338
1:1
15,388
Restoration
Table 2c. Mitigation Type and Quantity — (Phase 3)
Mitigation Type
Area/Distance
Mitigation Credit
Credits
(acres/If)
Ratio
Non - Riparian
38.9
1:1
38.9
Wetland Restoration
(Swamp Forest)
Non - Riparian
Wetland
68.0
2:1
34.0
Enhancement
(Swamp Forest)
,.T_ --
IN On-Riparian
Wetland
85.0
7:1
12.1
Preservation
(Swamp Forest)
Total Non - Riparian
191.9
N/A
85
Wetland Mitigation

Table 2d. Mitigation Type and Quantity — (Phase 4)
Mitigation Type
Area/Distance
Mitigation Credit
Credits
CAMA Coastal Wetland
(acres/If)
Ratio
Riverine Swamp Forest,/Non -Tidal Freshwater Marsh, Tidal
Freshwater Marsh
Riparian (Non -
Bottomland Hardwood Forest, Headwater Wetland, Flood -
Plain Pool, Mountain Bog*
Non - Riparian
Non - Riverine Swamp Forest, Seep, Small Basin Wetland,
Pocosins, Estuarine Woody, Pine Flat, Pine Savannah,
Hardwood Flat
riverine) Wetland
77.0
1:1
77
Restoration (Small
Stream Swamp)
Non- Riparian Wetland
Enhancement (Swamp
48.0
2:1
24
Forest)
Non - Riparian Wetland
Preservation (Swamp
92.0
7:1
13.1
Forest)
Total
Non - Riparian
140.0
N/A
37.1
Wetland Mitigation
Total Riparian (Non -
riverine) Wetland
77.0
N/A
77
Mitigation
Stream (First Order)
8,470
1:1
8,470
Restoration
17. Wetland community types found in a mitigation bank will be described in
accordance with the procedures found in the NC Wetland Assessment Method (NC
WAM, USACE, 2007). It is expected that impacts to the NC WAM types listed below
will be compensated by the Mitigation Types as listed in order to qualify 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.
Table 1. Wetland Communitv Tvves
Mitigation Type
NCWAM Type
CAMA Coastal Wetland
Salt /Brackish Marsh*
Riparian (Riverine)
Riverine Swamp Forest,/Non -Tidal Freshwater Marsh, Tidal
Freshwater Marsh
Riparian (Non- Riverine)
Bottomland Hardwood Forest, Headwater Wetland, Flood -
Plain Pool, Mountain Bog*
Non - Riparian
Non - Riverine Swamp Forest, Seep, Small Basin Wetland,
Pocosins, Estuarine Woody, Pine Flat, Pine Savannah,
Hardwood Flat
*Note that these wetland types only occur in select HUCs of North Carolina.
9

18. It is anticipated by the parties that in most cases in which the USACE, after
consultation with the IRT, has determined that mitigation credits from the Bank may be
used to offset wetland impacts authorized by Section 404 permits and /or Section 10
permits, that the Restoration Equivalents, constitute credits that are considered to be
equal to restoration credits for the purposes of compensatory mitigation. Therefore, the
use of Restoration credits or Restoration Equivalents credits, or any combination thereof,
is acceptable to the USACE for any permit requirement so long as the required amount
of credits are debited for a given mitigation requirements. It is also understood that in
order to satisfy mitigation requirements imposed by the NC Division of Water Quality,
restoration impact amounts must be at a minimum of 1:1 such that for every one acre of
impact, at least one acre of mitigation must be in the form of restoration. Additionally,
decisions regarding stream mitigation will be made consistent with current policy and
guidance and will be made on a case by case basis. Wetland and stream compensation
ratios are determined by the USACE 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.
19. 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 waters and
wetland impacts authorized by Department of the Army permits, shall be made by
USACE, pursuant to Section 404 of the Clean Water Act, and implementing regulations
and guidance, after notice of any proposed use of the Bank to the members of the IRT,
and consultation with the members of the IRT concerning such use. Notice to and
consultation with the members of the IRT shall be through the permit review process.
10

5.0 CREDIT RELEASE SCHEDULE
The release of credits will occur pursuant to the credit release schedule. Given the
duration of construction and the phase approach, there are variations of credit release
schedules within the phases. The first schedule, Phase I, includes the restoration credits
of non - riparian wetlands associated with the Carolina Bay (145 ac.). Phase 1
construction was completed in March 2008 and the fifth year of monitoring was
completed in December 2012. Consequently, the final credit release for Phase 1 occurred
in May 2013. For Phase 2 and Phase 3, which consist of stream and wetland (riparian,
non - riverine and non - riparian) credits, earthwork was completed in February 2012 and
Year 1 monitoring was finalized in December 2012. The final phase (Phase 4) consists of
stream and wetland (riparian, non - riverine and non - riparian) credits and construction is
anticipated to be completed in 2016. The credit release schedules for all four phases of
the Bank are depicted in Tables 3a through 3g. Credit releases will be based upon
successful completion of the following tasks:
20. Fifteen percent (15 %) of the Bank's total restoration credits shall be released
immediately upon completion of all of the following (NOTE: These tasks have been
completed for Phase 1 -3 and only apply to Phase 4):
(a) Execution of this Amendment to the MBI by the Sponsor, the USACE, and
other agencies on the IRT who choose to execute this agreement;
(b) Approval of the final Mitigation Plan;
(c) Delivery of the financial assurances as described in Section 6 of this
Amendment to the MBI;
(d) Recordation of the preservation mechanism described in Section 5 of this
Amendment to the MBI, as well as a title opinion covering the property
acceptable to the USACE;
Additionally, the Sponsor must complete the initial physical and biological improvements
to the Bank site pursuant to the Mitigation Plan no later than the first full growing season
following initial debitini2 of the Bank.

21. Completion of T ask I is a prerequisite for release of any credits from the
bank site, not withstanding completion of other tasks described below.
Task 2: Task 2 includes completion of all mitigation implementation activities at the
Bank site as specifically identified in the Mitigation Plan and approved amendments.
Such activities will include required grading and planting of the site and establishment of
monitoring stations. Documentation (including `as- built' drawings) will be submitted to
the IRT certifying completion of Task 2. Upon completion of Task 2, 15% of the
wetland and stream Bank credits will be released (30% cumulative).
Task 3: Task 3 involves implementation of the monitoring plan and submittal of annual
reports to the IRT for a five -year monitoring period, or until success criteria have been
fulfilled, whichever period is longer. Hydrology and vegetation sampling will be
completed near the end of each growing season (between September 1 and October 31).
The data will be compiled and success /failure documented within the Bank. The data
will be submitted to the IRT as an Annual Wetland Monitoring Report (AWMR). Upon
submittal of the AWMR demonstrating that success criteria are being fulfilled, wetland
and stream credits will be released. Information regarding the release schedules for the
different AWMR phases and stream restoration components of the project are provided in
Tables 3a through 3g.
Table 3a. Mitigation Credit Release Schedule: Phase I (Non- Riparian Wetlands)
(145 acres- Carolina Ba )
Task
Completion
Percentage of
Credits
Cumulative
Date
Credits
Released
Credits
Released (%
Released
cumulative)
1.0 Signing of the MBI;
2/2008
15 (15)
21.8
21.8
Recordation of
Conservation Easement
Deed; Delivery of financial
assurances
2.0 Completion of all
3/2008
15 (30)
21.8
43.6
�Restoration t1GUV16ies
1?

3.0 Monitoring Plan
- --
- --
- --
- --
i i, r
3.1 Year 1. Fulfill Success
Criteria
i in n
ii�007
1 /
10 140
1 A C
G
3.2 Year 2: Fulfill Success
Criteria
1/2010
10 (50)
14.5
72.6
3.3 Year 3: Fulfill Success
Criteria
1/2011
20 (70)
29
101.7
3.4 Year 4: Fulfill Success
Criteria
1/2012
10 (80)
14.5
116.2
3.5 Year 5: Fulfill Success
Criteria
1/2013
10 (90)
14.5
130.5
4.0 Final Approval
5/2013
10 (100)
14.5
145
TOTAL
100
145
145
*Represents 145 acres of riparian (non - riverine) wetland restoration
Table 3b. Mitigation Credit Release Schedule: Phase 2 (Riparian, non - riverine
Wetlands) (127.1 acres *)
Task
Projected
Percentage of
Credits
Cumulative
Completion
Credits
Released
Credits
Date
Released (%
Released
cumulative
1.0 Signing of the MBI;
2/2008
15 (15)
15.6
15.6
Recordation of
Conservation Easement
Deed; Delivery of financial
assurances
2.0 Completion of all
2/2012
15 (30)
15.7
31.3
Restoration Activities
3.0 Monitoring Plan
- --
- --
- --
- --
3.1 Year 1: Fulfill Success
2/2013
10 (40)
10.4
41.7
Criteria
3.2 Year 2: Fulfill Success
2/2014
10 (50)
10.4
52.1
Criteria
3.3 Year 3: Fulfill Success
2/2015
20 (70)
21.0
73.1
Criteria
3.4 Year 4: Fulfill Success
2/2016
10 (80)
10.4
83.5
Criteria
3.5 Year 5: Fulfill Success
2/2017
10 (90)
10.4
93.9
Criteria
4.0 Final Approval
5/2017
10 (100)
10.4
104.3
TOTAL
100
104.3
104.3
*Represents 100.5 acres of riparian (non - riverine) wetland restoration and 26.6 acres of
riparian (non - riverine) wetland preservation
t;

Table 3c. Mitigation Credit Release Schedule: Phase 2 (Non-Riparian Wetlands)
(247.7 acres *) v
Task
Projected
Percentage of
Credits
Cumulative
Completion
Credits
Released
Credits
Date
Released (%
Released
cumulative)
1.0 Signing of the MBI;
2/2008
15 (15)
13.6
13.6
Recordation of
Conservation Easement
Deed; Delivery of financial
assurances
2.0 Completion of all
2/2012
15 (30)
13.6
27.2
Restoration Activities
3.0 Monitoring Plan
- --
- --
- --
- --
3.1 Year 1: Fulfill Success
2/2013
10 (40)
9.1
36.3
Criteria
3.2 Year 2: Fulfill Success
2/2014
10 (50)
9.1
45.4
Criteria
3.3 Year 3: Fulfill Success
2/2015
20 (70)
18.1
63.5
Criteria
3.4 Year 4: Fulfill Success
2/2016
10 (80)
9.1
72.6
Criteria
3.5 Year 5: Fulfill Success
2/2017
10 (90)
9.1
81.7
Criteria
4.0 Final Approval
5/2017
10 (100)
9.0
90.7
TOTAL
100
90.7
90.7
*Represents 38.5 acres of non - riparian wetland restoration, 62.4 acres of non - riparian
wetland enhancement, and 146.8 acres of non - riparian wetland preservation
Table 3d. Mitigation Credit Release Schedule: Phase 2 - Stream Restoration
(15,3381f)
Task
Projected
Percentage of
Credits
Cumulative
Completion
Credits
Released
Credits
Date
Released (%
Released
cumulative)
1.0 Signing of the MBI;
2/2008
15 (15)
2,300
2,300
Recordation of
Conservation Easement
Deed; Delivery of financial
assurances
2.0 Completion of all
2/2012
15 (30)
2,301
4,601
Restoration Activities
3.0 Monitoring Plan
- --
- --
- --
- --
3.1 Year 1: Fulfill Success
2/2013
10 (40)
1,534
6,135
Criteria
r 2: Fulfill 5.: ---s
u
L Criteria
14

3.3 Year 3: Fulfill Success
Criteria
2/2015
10 (60)
1,534
9,203
3.4 Year 4: Fulfill Success
Criteria
2/2016
10 (70)
1,534
10,737
3.5 Year 5: Fulfill Success
Criteria
2/2017
15 (85)
2,300
13,037
4.0 Final Approval
5/2017
15 (100)
2,301
15,338
TOTAL
2/2016
100
15,338
11.6
Table 3e. Mitigation Credit Release Schedule: Phase 4 (Riparian, non - riverine
Wetlands) (77 acres *)
Task
Projected
Percentage of
Credits
Cumulative
Completion
Credits
Released
Credits
Date
Released (%
Released
cumulative)
1.0 Signing of the MBI;
2/2016
15 (15)
11.6
11.6
Recordation of
Conservation Easement
Deed; Delivery of financial
assurances
2.0 Completion of all
2/2016
15 (30)
11.5
23.1
Restoration Activities
3.0 Monitoring Plan
_ -_
- --
- --
- --
3.1 Year 1: Fulfill Success
2/2017
10 (40)
7.7
30.8
Criteria
3.2 Year 2: Fulfill Success
2/2018
10 (50)
7.7
38.5
Criteria
3.3 Year 3: Fulfill Success
2/2019
20 (70)
15.4
53.9
Criteria
3.4 Year 4: Fulfill Success
2/2020
10 (80)
7.7
61.6
Criteria
3.5 Year 5: Fulfill Success
2/2021
10 (90)
7.7
69.3
Criteria
4.0 Final Approval
5/2022
10 (100)
7.7
77.0
TOTAL
100
77.0
77.0
*Represents 77 acres of riparian (non - riverine) wetland restoration
1�

Table 3f. Mitigation Credit Release Schedule: Phase 4 (Non-Riparian Wetlands) (140 acres *)
Task
Projected
Percentage of
Credits
Cumulative
Completion
Credits
Released
Credits
Date
Released (%
Released
cumulative)
1.0 Signing of the MBI;
2/2016
15 (15)
5.6
5.6
Recordation of
Conservation Easement
Deed; Delivery of financial
assurances
2.0 Completion of all
2/2016
15 (30)
5.5
11.1
Restoration Activities
3.0 Monitoring Plan
- --
- --
- --
- --
3.1 Year 1: Fulfill Success
2/2017
10 (40)
3.7
14.8
Criteria
3.2 Year 2: Fulfill Success
2/2018
10 (50)
3.7
18.5
Criteria
3.3 Year 3: Fulfill Success
2/2019
20 (70)
7.4
25.9
Criteria
3.4 Year 4: Fulfill Success
2/2020
10 (80)
3.7
29.6
Criteria
- --
1
I
1
3.5 Year 5: Fulfill Success
2/2021
10 (90)
3.7
33.3
Criteria
4.0 Final Approval
5/2021
10 (100)
3.8
37.1
TOTAL
100
37.1
37.1
*Represents 48 acres of non - riparian wetland enhancement, and 92 acres of non - riparian
wetland preservation
Table 3g. Mitigation Credit Release Schedule: Phase 4 - Stream Restoration (8,4701f)
Task
Projected
Percentage of
Credits
Cumulative
Completion
Credits
Released
Credits
Date
Released (%
Released
cumulative)
1.0 Signing of the MBI;
2/2016
15 (15)
1,270.5
1,270.5
Recordation of
Conservation Easement
Deed; Delivery of financial
assurances
2.0 Completion of all
2/2016
15 (30)
1,270.5
2,541
Restoration Activities
3.0 Monitoring Plan
- --
- --
- --
- --
3.1 Year 1: Fulfill Success
2/2017
10 (40)
847
3,388
Criteria
3.2 Year 2: Fulfill Success
2/2018
10 (50)
847
4,235
Criteria
3.3 Year 3: Fulfill Success
2/2019
10 (60)
847
5,082
Criteria
3.4 Year 4: Fulfill Success
2/2020
10 (70)
847
5,929
Criteria
L - - -- - - - -L
- --
1
I
1
16

3.5 Year 5: Fulfill Success
Criteria
2/2021
15 (85)
1,270.5
7,199.5
4.0 Final Approval
5/2021
15 (100)
1,270.5
8,470
TOTAL
100
8,470
8,470
Credit releases for Task 3 will occur only if success criteria are fulfilled as stipulated in
Section V of the Mitigation Plan. The above schedule applies only to the extent the
Sponsor documents acceptable survival and growth of planted vegetation, and attainment
of acceptable wetland hydrology as described under the success criteria in the monitoring
section of the mitigation plan. The final 15% of stream credits and 10% of wetland
credits for all phases will be available for sale only upon a determination by the IRT of
functional success as defined in the mitigation plan.
Transfer of Mitigation Credits: The Sponsor intends to use the mitigation credits to be
released in accordance with paragraph 20 and 21 of this Agreement to offset impacts of
future permitted projects for which USACE authorization for utilization of such credits is
obtained. The remaining released credits, if any, will be held by Sponsor for investment
purposes. The credits held by the Sponsor for investment purposes may be transferred, in
one or more transfers, to a third party (the "Transferee "). Sponsor shall provide written
notice of such transfers to USACE, but additional USACE or IRT approvals or consents
for such transfers shall not be required. Any such future transfers to Transferee shall not
require an amendment to the MBI, it being specifically understood and agreed that the
Transferee shall assume Sponsor's obligations under the MBI, as amended, as it relates to
all transferred credits. No transfer of mitigation credits shall be deemed to create, nor be
construed to make, the Sponsor and the Transferee partners, joint venturers or agents of
each other.
22. The Sponsor shall develop accounting procedures for maintaining accurate
records of credits made to the Bank and debits made from the Bank. Such procedures
shall include the generation of a report by the Sponsor showing credits used at the time
1 1

they are debited from the Bank, which the Sponsor shall provide within 30 days of the
debit to each member of the IRT. In addition, the Sponsor shall prepare an annual report,
on each anniversary of the date of execution of this Agreement, showing all credits used,
and the balance of credits remaining, to each member of the IRT, until such time as all of
the credits have been utilized, or this Agreement is otherwise terminated. All reports
shall identify credits debited and remaining by type of credit (e.g. headwater swamp
wetland), and shall include for each reported debit the USACE Action ID Number for the
permit for which the credits were utilized.
6.0 PROPERTY DISPOSITION
23. A Conservation Easement Deed has been recorded and conveyed to Cape
Fear River Watch, Inc. (a non - profit 501 (c) (3) corporation) in accordance with this
Agreement. As the grantee of this easement, Cape Fear River Watch will be responsible
for maintaining the Bank in strict accordance with the provisions expressed therein and
will be responsible for protection of the Bank Site in perpetuity. The Conservation
Easement Deed shall be perpetual, preserve all natural areas, and prohibit all use of the
property inconsistent with its use as a mitigation property, including any activity that
would materially alter the biological integrity or functional and educational value of
wetlands within the Bank site, consistent with the Mitigation Plan. Provided, however, if,
prior to the release and use of mitigation credits in the Bank, circumstances or conditions
arise that render the property unsuitable or infeasible as a mitigation bank site, as
determined by Sponsor, in its sole discretion, this easement shall terminate. In such
event, the Sponsor and the Grantee shall join in the execution of such documentation as
may be necessary to evidence such termination. The purpose of the Conservation
Easement Deed will be to assure that future use of the Bank site will result in the
restoration, protection, maintenance, and enhancement of wetland and stream functions
as described in the Mitigation Plan. The Sponsor has delivered a title opinion for the
mitigation property. A copy of the recorded Conservation Easement Deed is attached as
Exhibit B.
�Q
1 V

7.0 FINANCIAL ASSURANCES
24. Prior to the first credit release, the Sponsor secured a $500,000 irrevocable
letter of credit (LOC) with Citigroup as a financial assurance of completing construction
of the Bank site. Subsequent to documentation of implementation and construction of
Phase 1 through Phase 3, and as approved by USACE and the IRT, this LOC was
replaced by a new LOC (issued May 30, 2013) in the amount of $174,850. The current
LOC is a financial assurance instrument for mitigation site monitoring and maintenance
(including contingency actions) in the event of Bank default or failure. This portion of
the letter of credit will be left in place for the duration of the monitoring period. A
separate LOC (or equivalent financial assurance instrument) for Phase 4 will be required
prior to the 15% credit release associated with Task 1.
8.0 LONG TERM MANAGEMENT
25. The Sponsor has provided a separate endowment to Cape Fear River Watch,
Inc. (Grantee) for the long -term management and maintenance of the site. The Grantee
will be responsible for ensuring protection of the site in a natural state consistent with the
provisions of the conservation easement deed.
9.0 DEFAULT AND CLOSURE
26. It is agreed to establish and /or maintain the Bank site 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 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.

27. Any delay or failure of 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, lightning, earthquake, fire,
landslide, drought, hurricane, storm, flood, 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
Sponsor is affected by any such event, 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.
28. At the end of the monitoring period, upon satisfaction of the performance
standards, the Sponsor may submit a request to close out the bank site to the DE. 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.
10.0 MISCELLANEOUS
29. Any agency participant may terminate its participation in the IRT with notice
in writing to all other parties to this agreement. Termination shall be effective seven (7)
days from placing said notices in the United States mail. Member withdrawal shall not
�n
�v

affect any prior sale of credits and all remaining parties shall continue to implement and
enforce the terms of this Amendment to the MBI. Except for termination as described
above, this agreement may be modified only with the written agreement of all remaining
parties to this agreement at the time of the modification.
30. 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.
31. This Amendment to the MBI embodies the entire agreement between the
parties with respect to the amendment of the MBI made and entered into on the 5th day of
January 2009. In the event of any conflict or inconsistency between the provisions of the
MBI and this Amendment to the MBI, the provisions of this Amendment shall control
and govern.
32. In the event any one or more of the provisions contained in this Amendment
to the MBI 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
Amendment to the MBI shall be construed as if such invalid, illegal or unenforceable
provision had not been contained herein.
33. This Amendment to the MBI shall be governed by and construed in
accordance with the laws of North Carolina and the United States as appropriate.
34. This Amendment to the MBI 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.
35. The terms and conditions of this Amendment to the MBI shall be binding
upon, and inure to the benefit of the parties hereto and their respective successors.
G1

36. All notices and required reports shall be sent by regular mail to each of the
parties at their respective addresses, provided below:
Ms. LaDane Williamson
Stone Farm Investment, LLC
11 Causeway Dr.
Ocean Isle Beach, NC 28469
Mr. DeCarol Williamson
Stone Farm Investment, LLC
2618 New Village Way
Wilmington, N.C. 28405
IRT MEMBERS:
CORPS: Mr. Mickey Sugg
U.S. Army Corps of Engineers
Regulatory Division
69 Darlington Avenue
Wilmington, N.C. 28403
EPA: Mr. Todd Bowers
U.S. Environmental Protection Agency
Wetlands Section- Region IV
61 Forsyth Street, S.W.
Atlanta, Ga 30303 -8960

FWS: Ms. Kathy Matthews
U.S. Fish and Wildlife Service
P.O. Box 33726
Raleigh, N.C. 27636 -3726
NMFS: Mr. Fritz Rohde
National Marine Fisheries Service
Habitat Conservation Division
101 Pivers Island Road
Beaufort, N.C. 28516
NCWRC: Ms. Maria Dunn
N.C. Wildlife Resources Commission
943 Washington Square Mall
Washington, N.C. 27889
NCDCM: Ms. Heather Coats
Division of Coastal Management
N.C. Department of Environment
and Natural Resources
127 Cardinal Drive Extension
Wilmington, N.C. 28405
NCDW : Mr. Eric Kulz
Division of Water Resources
Wetlands, Buffers, Stormwater- Compliance
and Permitting Unit
N.C. Department of Environment
and Natural Resources
1650 Mail Service Center
Raleigh, N.C. 27699 -1650
LJ

IN WITNESS WHEREOF, the parties hereto have executed this Agreement for the Amendment
to the Stone Farm Regional Mitigation Bank:
SPONSOR:
Stone F I s nt, LLC
By: Date: G � 0 /r3
DeCarol Williamson
4aDae'wliiiamson Y' Z3
r
ate: 0 �
CORPS:
U.S. A C s of E ineer
By: Date: / O ©C %/ Zo �3
Scott McLendon
Wilmington Regulatory Division, Chief
U.S. Army Corps of Engineers
24

IN WITNESS WHEREOF, the parties hereto have executed this Amendment to the Mitigation
Banking Instrument entitled "Stone Farm Regional Mitigation Bank in Brunswick County, NC ":
N.C. Division of Coastal Management:
Ms. Debbie Wilson, Manager
Wilmington Regional Office
r
By: - Date: 1,2

IN WITNESS WHEREOF, the parties hereto have executed this Amendment to the Mitigation
Banking Instrument entitled "Stone Farm Regional Mitigation Bank in Brunswick County, NC ":
N.C. Division of !Water Resources:
Mr. Thomas A. Reeder, Director
X,'
B
i
t�
Date:

IN WITNESS WHEREOF, the parties hereto have executed this Amendment to the Mitigation
Banking Instrument entitled "Stone Farm Regional Mitigation Bank in Brunswick County, NC ":
U.S. Fish and Wildlife Service:
Mr. Pete Benjamin, Field Supervisor
By:
Date:

IN WITNESS WHEREOF, the parties hereto have executed this Amendment to the Mitigation
Banking Instrument entitled "Stone Farm Regional Mitigation Bank in Brunswick County, NC":
N.C. Wildlife Resources Commission:
Mr. David Cox, Technical Guidance Supervisor
Division of Inland Fisheries
By:
Date: Y�

List of Exhibits
x l It m Amended Construction Pans for phase 3 (Revised 11115111).
Exhibit B. Recorded Conservation Easement Survey Flat (Revised July 22, 2013)
• :.

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AMENDED CONSTRUCTION PLANS FOR
PHASE

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RECORDED CONSERVATIONE T
SURVEY PLAT (REVISED JULY 22, 2013)

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(', MARCH 2012)

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