20150636 Ver 1_Credit Release Task 9 (partial)-Neville Phase I_20220323

!

March 23, 2022
DWQ Project #: 2015-0636
Orange County
Mike Hermann
Watershed Investments NC, LLC
1630 Weatherford Circle
Raleigh, NC 27604

Re: Neville Farms Mitigation Bank Instrument (MBI)
Neville Farms Phase I Bank Parcel Credit Release Task 9 (partial)

Dear Mr. Hermann:

On November 8, 2021, the Division of Water Resources (DWR) received a Year 5 Monitoring
Report from Watershed Investments NC, LLC (WINC) for Phase I and Phase II (sites) of the Neville
Farms Mitigation Site. Vegetation data submitted with the report indicate that Plot 7 and the area
around it, may need supplemental plantings and allowed to recover from adaptive management
efforts in 2020 that killed planted trees. Of the seven plots, vegetation data suggests that planted
stems in three plots (3, 4, and 5) need additional time to grow. Most of the stems in plots 3, 4 and 5
are still below reasonable heights at year 5. Most of the stems in these three plots are less than 5 feet
with many less than 3 feet, and is indicative of either being recently planted, having poor growth or
affected by stressors. Substantial adaptive management efforts were performed by WINC in 2020
and were satisfactory; therefore, DWR will issue a 5% credit release with the remaining 5% issued if
an onsite visit by DWR to reassess vegetation shows better performance in Plots 3, 4, 5 and 7. DWR
will reassess onsite conditions in early Fall 2022 to determine whether to closeout out the site for any
further monitoring.

DWR received a continuation certificate for performance bond (#CE00155800021) issued to WINC
by Philadelphia Indemnity Insurance Company in the amount of $34,500 to cover monitoring and
maintenance at the subject site. The term of this bond applies through February 21, 2023.

According to the MBI signed on January 7, 2016, the following Project Milestones for Phase I have
been partially met, and the corresponding credits shall be released:

Task/Milestones Credit

9) Monitoring Report #5: Approved by the DWR and final site visit by DWR 5%
has been conducted (partial)

By copy of this correspondence, DWR confirms that you have partially satisfied the above
requirements for the above-referenced tract. Therefore, 5% of your Jordan Lake riparian buffer
2
2
Preservation credits (0.05 x 1,742.4 ft = 87.12 ft) 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

!!!
!!Ofwjmmf!Gbsnt!Qibtf!J!
!!Nbsdi!34-!3133!
available to sell. Finally, 5% of your generated phosphorus credits (0.05 x 537.85 lb-P = 26.89 lb-
P) are now 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 in accordance with 15A
NCAC 02B .0703. 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.

Sincerely,

Paul Wojoski, Supervisor
401 and Buffer Permitting Branch
PW/km

cc: File Copy (Katie Merritt)

Qbhf!3!pg!3!