20181096 Ver 1_HairSheepMitPlanFinal_20200502

KCI Yadkin 01 Umbrella Mitigation Bank
FINAL MITIGATION PLAN
JANUARY 23, 2020
REVISED MARCH 11, 2020
REVISED MAY 2, 2020
Hair Sheep Stream Mitigation Bank
Surry County, North Carolina
Action ID # SAW-2018-00712
Yadkin River Basin
Cataloging Unit 03040101
Prepared for:
USACE, Wilmington District
Asheville Regulatory Field Office
Asheville Field Office
151 Patton Avenue, Room 208
Asheville, North Carolina 28801-5006
Prepared by:
KCI
ASSOCIATES OF NC.
KCI Associates of North Carolina, PC
4505 Falls of Neuse Rd, Suite 400
Raleigh, NC 27609
[phone]

TABLE OF CONTENTS
1.0
PROJECT INTRODUCTION............................................................................................................1
2.0
WATERSHED APPROACH AND SITE SELECTION..........................................................................3
3.0
BASELINE AND EXISTING CONDITIONS.......................................................................................6
3.1
Watershed Processes and Resource Conditions........................................................................6
3.1.1
Landscape Characteristics.....................................................................................................
6
3.1.2
Land Use/Land Cover and Chronology ofImpacts ................................................................
8
3.1.3
Watershed Disturbance and Response...............................................................................12
3.1.4
Site Photographs.................................................................................................................17
4.0
FUNCTIONAL UPLIFT POTENTIAL..............................................................................................20
5.0
MITIGATION PROJECT GOALS AND OBJECTIVES.......................................................................
21
6.0
DESIGN APPROACH AND MITIGATION WORK PLAN.................................................................22
6.1
Cooks Creek..............................................................................................................................
22
6.2
T1-1 and T1...............................................................................................................................22
6.3
T2-1 and T2-2............................................................................................................................23
6.4
T2..............................................................................................................................................
23
6.5
Ancillary Riparian Wetland Uplift.............................................................................................
23
6.6
Crossings...................................................................................................................................24
6.7
Design Discharge Determination..............................................................................................25
6.8
Sediment...................................................................................................................................26
6.9
Planting.....................................................................................................................................28
6.10
Project Assets...........................................................................................................................
28
7.0
PERFORMANCE STANDARDS....................................................................................................32
8.0
MONITORING PLAN..................................................................................................................32
9.0
ADAPTIVE MANAGEMENT PLAN...............................................................................................36
10.0
LONG-TERM MANAGEMENT PLAN...........................................................................................36
11.0
FINANCIAL ASSURANCES..........................................................................................................
36
12.0
REFERENCES..............................................................................................................................37
13.0
APPENDICES..............................................................................................................................39
13.1
Plan Sheets
13.2
Data Analysis/Supplemental Information and Maps
13.3
Site Protection Instrument
13.4
Credit Release Schedule
13.5
Financial Assurance
13.6
DWR Stream Identification Forms and USACE Wetland Data Sheets
13.7
Approved Jurisdictional Determination
13.8
Invasive Species
13.9
NEPA Documentation
13.10
Agency Correspondence
Mitigation Plan-112312020 Hair Sheep Stream Mitigation Bank
i

FIGURES
Figure 1. Project Site Vicinity Map................................................................................................................2
Figure2. USGS Topographic Map.................................................................................................................4
Figure 3. Project Site / Watershed Map.......................................................................................................
5
Figure4. Soil Survey Map..............................................................................................................................7
Figure 5. Land Use/Land Cover Map.............................................................................................................9
Figure6A. Historic Aerials...........................................................................................................................10
Figure6B. Historic Aerials...........................................................................................................................11
Figure 7. Current Conditions Plan View Map..............................................................................................16
Figure 8. Local Regional Curve Comparison................................................................................................
25
Figure9. Project Asset Map........................................................................................................................31
Figure 10. Proposed Monitoring Plan.........................................................................................................35
TABLES
Table1. Credit Summary...............................................................................................................................1
Table 2. Existing Stream Bank Height and Entrenchment Ratios...............................................................12
Table 3. Project Attribute Table..................................................................................................................14
Table 4. Project Goals, Objectives, and Functional Outcomes...................................................................
21
Table 5. Local Regional Curve Data.............................................................................................................25
Table 6. Local XS Flow Compared to USGS Regression for North Carolina .................................................
26
Table 7. Sediment Summary for Project Reaches.......................................................................................
27
Table8. Project Asset Table........................................................................................................................
29
Table 9. Length and Summations by Mitigation Category..........................................................................30
Table 10. Overall Assets Summary..............................................................................................................30
Mitigation Plan—112312020 Hair Sheep Stream Mitigation Bank

1.0 PROJECT INTRODUCTION
The Hair Sheep Stream Mitigation Bank (HSSMB) is a stream mitigation project being developed as part
of the KCI Yadkin 01 Umbrella Mitigation Bank in the Yadkin River Basin (03040101 8-digit cataloging unit)
in Surry County, North Carolina. The site's natural hydrologic regime has been substantially modified
through the relocation and straightening of the existing stream channels, an inline impoundment that has
been breached, livestock impacts, and clearing of riparian buffer. This site offers the chance to restore
impacted pasture and agricultural lands to a stable stream ecosystem with a functional riparian buffer
and floodplain access. Existing riparian wetlands, while not included as part of the mitigation credits, will
be rehabilitated as part of the project. A North Carolina Interagency Review Team (NCIRT) field visit took
place on May 29, 2018, and a final prospectus for the site was submitted in August 2018.
The HSSMB is situated in north -central Surry County. The site is located approximately 4.5 miles west of
Mount Airy, North Carolina. Specifically, the site is located off Haystack Road (SR 1480) with the project
parcels split by 1-74. The center of the site is at approximately 36.4782,-80.7039 in the Dobson USGS
Quadrangle. The site location is shown in Figure 1.
The HSSMB will restore a stable stream ecosystem along Cooks Creek and five of its tributaries (T1, T1-1,
T2-1, T2-2, and T2) using a combination of stream restoration and enhancement techniques. Except in
transition areas, the design will dictate a Priority 1 approach to reconnect the streams with a relic
floodplain. Once site grading is complete, the riparian buffer will be planted with native tree species and
livestock will be excluded permanently. The site will be monitored for seven years or until the success
criteria are met. Table 1 indicates the proposed credit yield for the site assuming successful
implementation of the design, maintenance, and monitoring components of the project.
Table 1. Credit Summary
Hair Sheep Stream Mitigation Bank, Surry County
Mitigation Credits
Non-
Nitrogen
Phosphorous
Stream
Riparian
Wetland
riparian
Buffer
Nutrient
Nutrient
Wetland
Offset
Offset
Type
R
RE
R
RE
R
RE
R
RE
Linear
2,2501f
1,8401f
Feet/Acres
Credits
2,250
989
TOTAL CREDITS
3,539*
R=Restoration RE=Restoration Equivalent *includes an additional 300 credits from stream buffer width analysis.
Mitigation Plan—112312020
Hair Sheep Stream Mitigation Bank
1

Project Location:
Surry County, NC
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Proposed Easement (12.4 ac) NGCC, © OpenStreetMap contributors, and the GIS User Community
FIGURE 1. PROJECT SITE VICINITY MAP N
0 0.25 0.5 HAIR SHEEP STREAM MITIGATION BANK n
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2

2.0 WATERSHED APPROACH AND SITE SELECTION
The HSSMB is located within the Upper Yadkin River Basin (03040101), which contains the Yadkin River
and its tributaries. The primary stressors noted in the watershed for causing degradation include naturally
erodible soils; sediment and erosion from road construction and other land -disturbing activities; and
excessive stormwater flow off impervious surfaces in urban and suburban areas. Turbidity and fecal
coliform violations have been documented at sites across the basin. Nonexistent or degraded riparian
buffers along stream channels are a significant contributing factor to the habitat degradation and water
quality impairment (NCEEP 2009).
The bank will provide mitigation credits to offset unavoidable impacts to wetland and stream resources
within the Yadkin 01 River Basin where increasing development pressure has produced a significant need
for restoration projects.
Restoration priorities identified for the Upper Yadkin River Basin include restoring or protecting wetland
and stream functions, including water quality, hydrologic regime, and fish and wildlife habitat (NCEEP,
2009). The project will support the following basin priorities:
-Restoration of water quality and aquatic habitat in impaired stream segments.
-Implementation of agricultural BMPs in order to limit inputs of sediment, nutrients and fecal
coliform to streams from active farming operations.
The project watershed for the HSSMB is comprised of 0.22 square mile (139 acres). The project aims to
uphold the goals consistent with several CU-wide watershed improvement objectives by relocating a
channelized stream to its historic landscape position; installing cross -sections sized to the bankfull
discharge; creating bedform diversity with pools, riffles, and habitat structures; and fencing out livestock
to reduce sediment impacts from active grazing areas as well as from adjacent grazing and farming
practices. Cooks Creek (12-63-11-1) has been rated by Division of Water Resources (DWR) as Class C, and
is not on the 2018 303(d) list. The project watershed is shown in Figure 2 and another map illustrating the
project's watershed location in relation to the Middle Fisher River (03040101090030) watershed is
included in Figure 3.
There are no conservation or protected areas located adjacent to the project site, but the project will
increase the amount of forested buffer along these headwater streams. There are no Natural Heritage
Areas located near the site.
Mitigation Plan—112312020 Hair Sheep Stream Mitigation Bank

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Feet SURRY COUNTY, NC A Dobson Quadrangle
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3.0 BASELINE AND EXISTING CONDITIONS
3.1 Watershed Processes and Resource Conditions
3.1.1 Landscape Characteristics
The site lies within the Northern Inner Piedmont (Level IV 45e) ecoregion of the Piedmont physiographic
province. The Northern Inner Piedmont has higher elevations and more rugged topography than other
areas of the Piedmont and mostly consists of a mosaic of cropland, pasture, and forest. The natural
vegetation typically contains Virginia pine, chestnut oak, and many mountain disjunct plant species
(Griffith and Omernik 2002).
The site is located within the Alligator Back Formation and the geology of the site is mapped as having
gneiss (Zabg), a metamorphic rock, as the major constituent. The rocks are described in this setting as
being finely laminated to thin layered, and locally containing massive gneiss and micaceous granule
conglomerate, including minor portions of schist, phyllite, and amphibolite (USGS 2018). The project
streams contain a mixture of medium to very coarse gravel with inclusions of small cobble. Bedrock is
present in isolated sections on the lower end of T2. Layers of gravel and cobble are evident within the cut
banks along the lower portions of T1, T2, and Cooks Creek. The valley types are confined in the upper
reaches until they become partly confined along the lower reaches of Cooks Creek and T2.
The project streams are all mapped as the Fairview sandy clay loam soil series (Fe) (USDA 2018). This series
is described as well -drained and occurring at an interfluve or head slope interfluvial position transitioning
into floodplain soils. Just downstream of the end of T2 at the bottom of the project, the soils are mapped
as Arkaqua loam soils (ArA) along Cooks Creek. This frequently flooded soil series, which is typically found
on drainageways and floodplains, is more representative of the soils along the lower reaches of the
project. Arkaqua soils develop from loamy alluvial sediments washed from soils formed in residuum from
gneiss, schist, phyllite, and other similar rocks (USDA 2018).
Mitigation Plan—112312020 Hair Sheep Stream Mitigation Bank

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ArA - Arkaqua loam
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W - Water
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FIGURE 4. NRCS SOIL SURVEY
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0 200 400 HAIR SHEEP STREAM MITIGATION BANK SurryCounty;
Feet SURRY COUNTY, NC NC Statewide
7

3.1.2 Land Use/Land Cover and Chronology of Impacts
The project watershed for the site is comprised of 0.22 square mile (139 acres). Current land use in the
project watershed was derived from the 2014 orthoimagery and consists of pasture/farmland (60% / 84
ac), scrub/shrub vegetation (17%/ 24 ac), low -density development (16%/ 23 ac), forest (3%/ 4 ac), and
highway/roads (4% / 5 ac). The drainage areas for the northern and southern portions of the project are
split by Interstate 74. The current adjacent land use has a negative impact on water quality of the project
streams. This is evidenced by direct runoff from agricultural open space along parts of the stream where
there is no riparian buffer and that livestock have direct access to all of the project reaches. KCI's
measurement of the total impervious area for the watershed is approximately 5%, which is based on the
land use delineated from the 2014 orthoimagery and based on published average impervious values for
land use categories (Center for Watershed Protection 2003).
The HSSMB has undergone significant modifications that have altered the site hydrology and vegetation.
Historic aerials were examined for any information about how the site has changed over recent history.
The reviewed aerials are included in Figures 6A and 6B. Historic aerials were obtained from the USGS
Earth Explorer and NCOneMap for 1950, 1966, 1976, 1993, 1998, 2005, 2010, and 2014.
The site has been systematically impacted by land clearing, grazing, and road development over the past
67 years. In the earliest aerial photo from 1950, the portions of the buffer along the northern and southern
streams have been cleared, with about half of the buffer remaining. It appears that most of the land that
has been cleared has not become utilized for agriculture yet, and there is no road along the current
interstate route.
By 1966 more complete clearing has occurred to convert the site to agriculture. Also, a pond has been
constructed at the downstream limits of the southern project streams. A farm path or road is evident
upslope and south of T1 and Cooks Creek along the ridgeline on the northern part of the project.
By 1976 there has been more clearing in the project area, but generally the site looks similar to the
previous aerial. Two ponds, one large and then one small, have been constructed upslope of the lower
end of T2 to capture incoming hillside flow. Seventeen years later, in 1993, the vegetation around portions
of the northern tributaries has grown back and the upslope drainage paths are visible. The farm road is
more prominent along the ridgeline. Also, in the southern portion of the project, there appear to be
multiple flowpaths in portions of lower T2 floodplain, potentially indicating wetlands, which there is
evidence of today. The pond below the downstream end of T2 has been drained.
By 1998, Interstate 74 or its precursor has been built, modifying the drainage areas for both portions of
the project, but particularly for T2. The middle portion of the original watershed now drains the interstate
and flows further to the east outside of the project. All riparian areas in the easement have been cleared
except for the upper reaches of T2-1 and T2-2. Also visible is the former ponded section on T2, which
resulted in highly sinuous channel. The pond is not seen in earlier aerial photographs, but evidence of the
pond has been found on -site and the aerial indicates it must have breached at some point prior to 1998.
Between 1998 and 2014, portions of the proposed project easement have been allowed to grow up to
early successional vegetative communities, while other areas have been kept clear for livestock grazing.
Over the 67 years of available record, both physical and functional impacts to the project streams have
been documented. These impacts included: channel modification and dam construction, land use and
drainage impacts from adjacent timber harvesting and road construction, unrestricted livestock access,
and general riparian vegetation removal.
Mitigation Plan—112312020 Hair Sheep Stream Mitigation Bank
8

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HAIR SHEEP STREAM MITIGATION BANK Image Source: Statewide
Orthoimagery, 201014.
Feet SURRY COUNTY, NC Land Cover from Imagery.
9

3.1.3 Watershed Disturbance and Response
The project has experienced landscape and vegetative modifications to allow for agriculture and livestock
management along the six project streams as seen in Figure 7. There are two primary drainages associated
with this project. The first, in the northern portion of the site, includes the named stream, Cooks Creek,
and two unnamed tributaries, T1 and T1-1. The second, in the southern portion of the site, includes three
additional unnamed tributaries: T2, T2-1, and T2-2. The confluence of Cooks Creek and T2 is approximately
330 linear feet (If) downstream of the southern project boundary. All of the streams have small drainage
areas in relation to theirflow, butthe base hydrologic source is primarily groundwater -driven from springs
and hillside seepage flow with minor additions from surface water. However, surface runoff from storm
events shaped the channels and induced the active channel evolution evident today.
As a result of the historical modifications to the watershed as documented in the previous section, the
project streams have been subject to a changing storm hydrograph, vegetation removal, and hoof shear
that have all impacted the existing conditions. Approximately 36% of the project streams have bank height
ratios greater than 1.5. Livestock have historically had an impact on the site and they still have full access
to all of the project streams.
Table 2. Existine Stream Bank Heieht and Entrenchment Ratios
Stream
Existing Bank Height Ratio
Existing Entrenchment Ratio
Cooks Creek
1.0-5.0
1.3-2.5
T1
1.6-2.2
1.4-3.1
T2-1
8.0
1.1
T2-2
6.1
1.3
T2
1.3-2.1
1.4-3.1
Cooks Creek comes onto the project at the northeastern easement boundary, where the stream flows
along the wooded backyards of residential parcels. Once onto the project, the stream flows for
approximately 725 If, and varies between being confined to partly confined. Along the left bank, there is
a floodprone area of varying width with several incoming seeps; the bank condition varies dependent on
the amount of vegetation. The right bank is against a steeper, cleared slope accessible to livestock, and
there is severe erosion with shear bank heights of 5-6 feet along the outer right meander bends and in
other confined sections. The upper half of Cooks Creek is incised with bank height ratios over 1.5; the
lower portion of Cooks Creek is less confined as it nears the confluence with T1, but there are still areas
of bank erosion and livestock impacts. The bed of Cooks Creek is comprised of medium to very coarse
gravel intermixed with small cobble, but it lacks well -developed pool morphology. The riparian buffer of
Cooks Creek has early successional vegetation along the eastern side of the stream, primarily in the form
of tag alder (Alnus serrulata), and the western side alternates between no vegetation and a narrow mix
of brush.
T1 and T1-1 both begin on a hillslope below Interstate 74 and are spring -fed channels that flow southeast
toward Cooks Creek. They have been channelized and flow parallel to each other, with spoil between
them. The drainage area and routing of T1 was likely affected bythe interstate construction. Each tributary
has its own separate hydrologic source. T1-1 begins at a headcut below a spring at the end of a series of
headcuts, where agricultural runoff flows down the valley. The headcuts have been filled with trash and
debris in an attempt to stabilize the bed. This channel is deeper than the neighboring T1 and is littered
with tires and other trash. T1-1 has isolated areas of bank erosion and most of the channelized stream is
narrow and confined with minimal access to a floodprone bench. The bed does have coarse material that
protects it from further incision, but there is minimal variation in the bed features themselves.
Mitigation Plan—112312020 Hair Sheep Stream Mitigation Bank
12

T1 begins at a spring/seep on a hillside. The spring was stabilized with rock at some point in its history, so
there is no significant erosion at the spring, but the channel has poorly -defined bed and bank features
because of livestock impacts. The first 100 If flow through an existing riparian wetland. As T1 continues
downstream, some bed variability has formed, but the channel has low functional value due to the
degraded riparian buffer and damage from livestock. As T1 and T1-1 come together, the condition of T1
is mixed, with tires and other trash still present in the channel and the banks varying between areas of
low and moderate bank erosion and incision. The flow of T1 becomes perennial approximately 150 If after
the T1 and T1-1 confluence. There is a headcut on T1 as it gets closer to Cooks Creek, after which the
stream continues to flow southeast until the confluence. The vegetation along T1-1 and T1 is mostly in an
early successional state.
The southern portion of the site has three project streams; T2-1 and T2-2 make up the headwaters of T2,
which begins after the confluence of the two upper streams. T2-1 is an intermittent stream that starts at
a headcut and flows about 300 If south where it transitions to a perennial stream at a headcut. T2-1
continues to flow for another 80 If where it joins T2-2. T2-2 is a perennial stream that begins at a headcut
and flows approximately 290 If to its confluence with T2-1. T2 starts at a fence line at the confluence of
T2-1 and T2-2 and flows generally southeast. At the start of T2, the landscape transitions to a wide valley
bottom that used to function as an integrated stream/wetland bottomland. There are still wetland
pockets and seeps on the southwestern side of the stream. Based on the historic aerials that show multiple
flow paths in this part of the valley, it is likely that the stream was channelized to drain the wetland area
and encourage flow to T2.
The majority of T2 has banks that are vertical and eroding. Livestock have damaged much of the channel.
The stream has headcuts, and the upper section has a highly sinuous, unstable planform. Approximately
350 If downstream of the start of T2, the stream flows through an existing dilapidated culvert, and then a
headcut occurs 275 If after that.
Following that, there is a breached pond berm about halfway down the project reach. The pond is not
evident in any of the historic aerials, but it likely caused the unstable planform in that part of the channel.
The abandoned pond riser can be seen adjacent to the channel below the old pond berm. The valley
bottom is generally flat with a low gradient towards the bottom of the project reach, but then the slope
increases and the channel straightens as it flows off the project parcel. The northern side of the channel
has been generally kept clear of vegetation, but the southern side of the channel has been allowed to fill
with scrubby, early successional vegetation, including invasive species such as multiflora rose, Callery
pear, tree of heaven, Japanese honeysuckle, and Chinese privet.
The descriptions above detail how the modifications to this landscape from livestock and vegetation
removal have resulted in the present day condition of the project streams. These streams represent a
variety of drainage sizes, hydrologic sources, and functional impairments. For more information on the
stream conditions, see the stream forms in Section 13.6.
A jurisdictional determination was submitted to the US Army Corps of Engineers on June 11, 2018 and a
USACE field visit was conducted on June 25, 2018. The JD was received on November 20, 2018 and is
included in the appendix.
Mitigation Plan—112312020
Hair Sheep Stream Mitigation Bank
13

Table 3. Project Attribute Table
Project Name
Hair Sheep Stream Mitigation Bank
County
Surry County
Project Area (acres)
12.4
Project Coordinates (lat. and
long.)
36.4782 N, 80.7039 W
Planted Acreage (Acres of
Woody Stems Planted)
12.0
Project Watershed Summary Information
Physiographic Province
Piedmont
River Basin
Yadkin
USGS Hydrologic Unit 8-digit
03040101
USGS Hydrologic Unit 14-digit
03040101090030
DWR Sub -basin
03-07-02
Project Drainage Area (acres)
139 acres
Project Drainage Area
Percentage of Impervious Area
o
5/
CGIA Land Use Classification
Pasture/Farmland (60% / 84 ac), Scrub/Shrub vegetation (17% / 24 ac), Low -Density
Development (16% / 23 ac), Forest (3% / 4 ac), and Highway/Roads (4% / 5 ac)
Existing Reach Summary Information
Parameters
Cooks Creek
T1 and T1-1
T2-1 and T2-2
T2
Length of reach (linear feet)
725
986
658
2,025
Valley Confinement
Confined
Confined
Confined
Confined
Drainage area (acres)
58 acres
24 acres
21 acres
75 acres
Perennial, Intermittent,
Ephemeral
Perennial
Intermittent/
Perennial
Intermittent/
Perennial
Perennial
NCDWQ Water Quality
Classification
C
C
C
C
Rosgen Classification
(Existing/Proposed)
G4/C4b
G4/E4b
G4/F4b
F4/G4
Evolutionary trend (Simon)
Stage III
Stage III
Stage III
Stage III
FEMA classification
None
None
None
None
Existing Wetland Summary Information
Parameters
Size of Wetland (acres)
0.34 (WA)
0.34 (WB and WC)
0.03 (WD)
Wetland Type
Headwater Forest
Headwater Forest
Headwater Forest
Mapped Soil Series
Fairview sandy clay loam
Fairview sandy clay loam
Fairview sandy clay loam
Drainage class
Well Drained
Well Drained
Well Drained
Soil Hydric Status
Non-Hydric
Non-Hydric
Non-Hydric
Source of Hydrology
Flood plain/Groundwater
Floodplain/Groundwater
Floodplain/Groundwater
Restoration or Enhancement
Method
N/A
N/A
N/A
"Items addressed in the Categorical Exclusion in Appendix.
Mitigation Plan—112312020
Hair Sheep Stream Mitigation Bank
14

Table 3, continued
Regulatory Considerations
Regulation
Applicable?
Resolved?
Supporting
Documentation
Waters of the United States —
Applying for
JD has been received and will submit for
Yes
Section 404
NWP 27
permit.
Waters of the United States —
Applying for
JD has been received and will submit for
Yes
Section 401
NWP 27
permit.
Endangered Species Act**
Yes
Yes
USFWS
Historic Preservation Act**
No
Yes
NCSHPO
Coastal Zone Management Act **
(CZMA)/ Coastal Area
No
N/A
N/A
Management Act (CAMA)
FEMA Floodplain Compliance
No
Yes
N/A
Essential Fisheries Habitat**
No
N/A
N/A
**Items addressed in the Categorical Exclusion in Appendix.
Mitigation Plan—112312020
Hair Sheep Stream Mitigation Bank
15

` d
Project Easement (12.4 ac)
Intermittent Streams
Perennial Streams
Headcuts
Cattle Wallows
Ditch
Breached Crossing Pipe �.
Former Dam
Existing Wetlands
Off -Site Streams
FIGURE 7. CURRENT CONDITION PLAN VIEW N
0 125 250 HAIR SHEEP STREAM MITIGATION BANK Source: NCOneMap
Feet SURRY COUNTY, NC Orthotmagery, 2014.
16

3.1.4 Site Photographs
Mitigation Plan—112312020 Hair Sheep Stream Mitigation Bank
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Mitigation Plan—112312020 Hair Sheep Stream Mitigation Bank
18

Mitigation Plan—112312020 Hair Sheep Stream Mitigation Bank
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4.0 FUNCTIONAL UPLIFT POTENTIAL
Based on the current stream and watershed conditions at the HSSMB, there is a high potential for
functional improvements at this site. A suite of stream functions have been compromised across this
system. Hydraulic functions have been affected by the direct modifications to the channel such as
relocation and livestock and by watershed processes from anthropogenic disturbances and land use
changes that have caused incision, bank erosion, and disconnection from the floodplain. These alterations
have compromised the geomorphologic functions of the channel. This condition is exacerbated by the
poor riparian buffer and other sources of direct agricultural runoff. All of the stream channels have low
functional values. This project offers a chance to restore these degraded streams and bring functional
uplift to this entire system.
The primary uplift for the HSSMB will be achieved at the hydraulic and geomorphological functional levels.
Reestablishing floodplain connectivity with a Priority 1 Restoration will allow stream flows to access the
floodplain area more frequently, providing uplift of hydraulic functions within this system that will
distribute flood flows through a wider area instead of within a confined channel. Geomorphological
functional uplift will be achieved by sizing channels to the bankfull flow, by creating a planform and profile
design that emphasizes bedform variation, and by establishing a native riparian corridor through the
removal of invasive species. As a result, bank migration and lateral stability will be restored to a
sustainable level and the banks and bed will accommodate design flows in a stable manner. Sediment
inputs will decrease due to reduced bank erosion and sediment transport can return to a stable level that
will accommodate watershed inputs. Riparian plantings will further support geomorphological
functionality by increasing bank stability.
Consideration of future impacts to the area that could limit functional uplift opportunities is important
when assessing project potential. Aside from the development of the Interstate 74 corridor in between
the two halves of the project site, there has been little change in the land use over the past fifty years and
future development pressures are considered to be low. All of the project streams except Cooks Creek
have their origins on the site, and these reaches present an opportunity to protect and improve valuable
headwater systems. The existing 0.71 acre of riparian wetlands is also being protected as part of the
project easement and will be integrated into the restored stream systems. The table below summarizes
the project goals and objectives that will lead to functional improvements and the monitoring tools that
will be used to track these changes to the site.
Mitigation Plan—112312020 Hair Sheep Stream Mitigation Bank
20

5.0 MITIGATION PROJECT GOALS AND OBJECTIVES
Table 4. Project Goals, Objectives, and Functional Outcomes
Goals
Objective
Functional Level
Function -Based
Monitoring Measurement
Parameter Effects
Relocate or stabilize
channelized and/or
Flood Frequency
incised streams to
Hydraulics
Floodplain
Restore
connect to a floodplain
Connectivity
Bank Height Ratio and
channelized and
or floodprone area
Entrenchment Ratio
livestock -
impacted
Install a cross-section
Bank
Cross -Sectional Survey
streams to
sized to the bankfull
Geomorphology
Migration/Lateral
stable C4 and
discharge
Stability
Visual Inspection of Bank Stability
C4b type
channels
Create bedform
Percent Riffle and Pool, Facet
diversity with pools,
Slopes, Visual Inspection
riffles, and habitat
Geomorphology
Bed Form Diversity
Visual Inspection of Feature
structures
Maintenance
Fence out livestock to
reduce sediment
Restore a
impacts from adjacent
Geomorphology
Bed Material
Pebble Count
forested riparian
grazing and farming
Characterization
buffer to provide
practices to the project
bank stability,
tributaries.
filtration, and
Plant the site with
Geomorphology/
Density
Y
shading
native trees and shrubs
and an herbaceous
Species
Vegetation
seed mix.
Composition
Species Composition/Diversity
Mitigation Plan—112312020
Hair Sheep Stream Mitigation Bank
21

6.0 DESIGN APPROACH AND MITIGATION WORK PLAN
The project streams were designed using a modified reference reach approach using a local regional curve
developed from stable reference cross -sections. In addition to the data from the on -site references,
common reference values from Harmon et al. 2011 were also used to aid the development of the design
criteria. The proposed channel design values have been adjusted as necessary to fit the existing site
conditions based on these sources.
6.1 Cooks Creek
This is the primary drainage on the northern portion of the site and involves improving the upper 460 If
(Stations 10+00 to 14+60) with Enhancement I and the remaining 258 If (Stations 14+60 to 17+18) with
Enhancement 11 techniques, generating 410 SMCs for this stream. The design challenges for the
Enhancement I reach include severe bank erosion on outer right bends, bank instability on the left banks,
and a lack of established riffle -pool bed morphology. In -stream work will focus on bank stabilization,
benching, and bedform stabilization. This reach does have intact gravel/cobble riffles; profile work will
preserve these areas while enhancing or adding pool features. The lower Enhancement 11 reach of Cooks
Creek moves away from the steep slopes to the west and has a broader floodprone area. The stream is
beginning to adjust to prior impacts, and the mitigation work will complement the existing stable features
with bank stabilization and benching in areas as needed. Although Cooks Creek was previously cleared of
riparian vegetation in the past, alders have established themselves along the banks. These existing shrubs
will be preserved and protected wherever possible, and transplanting will be attempted if removal is
needed. In addition to the channel work, livestock exclusion fencing will be installed to keep all livestock
out of the channel and the easement will be treated for invasive species.
6.2 T1-1 and T1
These two channels are in close proximity to each other and will share a mitigation approach. T1-1
(Stations 30+00 to 31+41) will be improved with Enhancement I for approximately 141 If; T1 will have
three different reaches: Enhancement II for 176 If (Stations 20+00 to 21+76), Enhancement I for 349 If
(STA 21+76 to 25+25), and 320 If of Enhancement II (STA 25+25 to 28+45) before reaching the confluence
with Cooks Creek. Together these four enhancement reaches will generate 525 SMCs. Work on T1-1 will
begin first by repairing active gullies and sediment sources upstream of the start of the channel. Direct
livestock impacts and upstream agricultural runoff have caused a severe headcut upstream of the start of
intermittent flow. This area will be stabilized with an approximately 15' x 30' BMP, which will arrest the
headcut with a boulder step and then maintain pool storage below to allow settling. The surrounding
hillside erosion will be graded, matted, and planted. Downstream of this repair, T1-1 will be enhanced by
raising the channel in the locations where it has incised. Benching and a cascade structure, with
alternating riffle and pool bed morphology, will be used for the intermittent portion of T1-1. Existing trash
will be removed from the stream as well.
The upper Enhancement II reach of T1 will largely maintain the existing form through the riparian wetland
for the first 100 If of the stream; exclusion of livestock and removal of invasive vegetation will allow this
area to improve through more passive means. As T1 nears the confluence with T1-1, the channel becomes
more incised, and bank grading will be used to remove a large spoil berm and develop a connected
floodprone feature between the two streams. Following the confluence, T1 will be improved with
Enhancement I, which will develop a new cross-section with a bankfull bench. Profile work will focus on
arresting headcuts and defining bed features with rock and wood structures in the channel. The lower
Enhancement II reach of T1 begins as the banks become consistently lower and headcuts are less frequent
Mitigation Plan—112312020 Hair Sheep Stream Mitigation Bank
22

approximately 300 If upstream of the confluence with Cooks Creek. The in -channel work forth is reach will
focus on stabilizing isolated eroding banks and one large headcut. Excluding livestock, treating invasive
vegetation, and removing a substantial amount of trash, tires, and debris from the stream will also
improve T1.
6.3 T2-1 and T2-2
The southern portion of the site contains T2-1 and T2-2, which then join to form T2. T2-1 will be improved
with Enhancement II at the top of the stream (Stations 200+00 to 201+36) and then restored for the
remainder (Stations 201+36 to 203+50) for a total of 268 SMCs. T2-1 starts as it forms from upslope
drainage paths joining together at the base of the slope. A 2-foot headcut just upstream of the start of
the channel will be stabilized with Class A/B stone, and the incoming swale will be graded and matted to
create a stable entry point further downstream into T2-1 to reduce a source of slope and bank erosion. A
1-foot headcut will be arrested using a riffle grade control structure. The restoration reach of T2-1 will
focus on repairing two 3-foot headcuts currently impacting the stream; these areas will be restored using
cascade structures that will allow for a gradual drop in elevation with alternating riffle -pool bed
morphology over a longer section of stream. The cascade structures will also allow for more existing bank
features (most importantly mature trees) to be maintained within the reach. The mitigation along T2-1
will also include riparian vegetation plantings and livestock exclusion.
T2-2 also forms from a convergence of hillside drainage swales and will be restored for 287 SMCs (Stations
250+00 to 252+87). Upslope of the start of the project channel, the incoming swales will be stabilized
through grading to reroute flow into T2-2, which will reduce the sediment entering the stream and bank
erosion in that location. A cascade structure will be installed at the existing headcut at the start, and then
the channel will be realigned to the north of the existing alignment. Additional cascade and step pool
structures will be installed along the rest of the reach. T2-2 will come back along the existing planform as
it nears the confluence with T2-1. Livestock exclusion will also benefit this stream.
6.4 T2
T2 begins after the confluence of T2-1 and T2-2 and will produce 1,749 SMCs from restoration (Stations
203+50 to 220+99). The valley type changes at the start of T2 to a partly confined to unconfined system
in a broader stream valley. Pocket wetlands (WA, WB, and WC) are found along the upper and middle
sections of T2. Three wetland gauges will be installed in these wetlands (Figure 9). The proposed stream
has been realigned throughout the valley using Priority 1 approach, which will increase the hydroperiod
of the existing wetlands. Three separate design cross -sectional dimensions are proposed for this reach to
accommodate changes in drainage area as the stream progresses down the valley (cross -sections A, B,
and C as shown in Section 13.1). Cascade and step pool structures will be used throughout T2 to manage
grade changes and to create habitat variability that is currently missing from the current system. The
breached crossing will be eliminated, and the old pond berm that runs across the channel approximately
halfway down T2 will be removed, so that the floodplain will be connected across the entire valley. In
addition, incoming swale drainage will be connected to T2 with stabilized rock outlets to effectively
manage upslope runoff. Invasive trees and shrubs will be treated, and the riparian zone will be replanted
with native species.
6.5 Ancillary Riparian Wetland Uplift
There are existing riparian wetlands (0.71 ac) within the project easement. While no mitigation credit is
being sought for the wetlands, they will still be an integral part of the site restoration. For the three
wetlands on the southern portion of the site (Wetlands A, B, and C, totaling 0.68 ac), they will benefit
Mitigation Plan—112312020 Hair Sheep Stream Mitigation Bank
23

from an increased groundwater hydroperiod and replanted vegetative community. T2 will be the main
hydrologic source to the riparian components of the wetland system, augmented by hillside seepage from
the adjacent uplands. The remaining wetland on the northern side of the project (Wetland D, 0.03 ac),
will also benefit from replanting and exclusion of livestock.
6.6 Crossings
There are no crossings or easements exceptions within this project.
Mitigation Plan—112312020
Hair Sheep Stream Mitigation Bank
24

6.7 Design Discharge Determination
KCI developed the design discharge values for the proposed streams by using three stable reference cross -
sections located on -site (Cooks Creek Reference XS A, T2 Reference XS A and XS B) (see Section 13.2 for
locations and cross -sectional data). In comparison to other impaired portions of the site, these three
reference cross -sections had stable bankfull features that allowed for the cross -sectional area and
discharge to be linked to the drainage area. Based on these values, we developed a local regional curve
using these cross -sections. The rural Mountain regional curves and equations were used as a comparison
for the on -site relationships (Harman et al 2000) (although the site is in the Piedmont, the Mountain curve
was deemed more suitable based on the site's characteristics). The local curve showed a linear power
relationship similar to that for the Mountain curve, but for smaller drainage area sizes.
1000
Regional Curve
• y = 100.640.76
to
L
M
u 100
KCI Curve
y = 118.32X0.793
RZ = 0.8559
10
1
0.01 1.00 10.00 100.00
Drainage Area (Square Miles)
Figure 8. Local Regional Curve Comparison
Table S. Local Regional Curve Data
Drainage
Reference
XS Area Estimate (sf)
Q (cfs) from
Q (cfs)
Cross -Section Location
Area (Sq.
XS Area
from Mountain Rural
Mountain Rural
from Ref XS
Miles)
(sf)
Regional Curve
Regional Curve
Cooks Creek Reference XS A
0.051
2.90
2.86
12.8
10.5
T2 Reference XS A
0.034
2.00
2.18
7.7
7.8
T2 Reference XS B
0.070
2.90
3.54
13.3
13.3
Mitigation Plan—112312020
Hair Sheep Stream Mitigation Bank
25

To further evaluate the field measurements taken within the project, we compared the flow results for
the three reference cross -sections to two different hydrologic methods. First, we compared our results to
the 2-year recurrence interval flow calculations using the USGS Rural Peak -Flow Regression Equations for
North Carolina in the USGS National Streamflow Statistics Program. Bankfull values in the North Carolina
Rural Mountain area have a mean recurrence interval of 1.3 years (Harman et al. 2000), and as such should
be lower than the 2-year recurrence interval USGS values. Our field results are lower than the USGS values
as expected. The effective discharge equation for a 1.5-year recurrence interval for the Blue Ridge
Ecoregion (Simon et al. 2004) was also used as a comparison tool. This comparison shows that our field
calculations are within the range of other established discharge estimates. In addition to the field -acquired
reference data, we also used common reference values from Harman et al. 2011 as mentioned previously.
Table 6. Local XS Flow Compared to USGS Regression for North Carolina
Drainage
USGS
Field Q
1.5 Recurrence
Cross -Section Location
Area (Sq.
(cfs)i
Regression 2-
Interval Q (cfs)3
Miles)
year Q (cfs)z
Cooks Creek Reference
0.051
12.8
23.1
15.9
XS A
T2 Reference XS A
0.034
7.7
1 17.4
12.0
T2 Reference XS B
0.070
13.3
1 28.8
19.9
1. Calculated using field bankfull dimensions and Manning's formula.
2. Calculated using USGS NSS, North Carolina Region 1 Equations assuming impervious percentage of 5%; recommended minimum range
for equation is 0.1 square mile — results shown for approximate range only.
3. Simon et al. 2004 equation for Blue Ridge (Ecoregion 66) for 1.5 Recurrence Interval.
6.8 Sediment
The on -site streams are predominantly gravel with inclusions of small cobble. Gravel and cobble layers
are evident in exposed banks and are one route that material is entering the system. Silt and sand are
present in areas where livestock impacts and bank erosion are occurring more frequently. The sediment
quantity contributed from the small project drainage areas is estimated to be supply -limited, except in
areas of active slope erosion. Once the site is restored, the upper reaches of T1, T1-1, T2-1, and T2-2 are
expected to function as threshold channels whereas T2 is anticipated to be an active gravel bed fluvial
system. Cooks Creek will have an active bed, but with a lower supply than T2. Native sediment harvested
from the site will be replaced in the restored streams as much as possible.
In order to analyze the existing sediment conditions within the project streams, two pavement samples
and thirteen pebble counts were performed for trend analysis. These data are provided in Section 13.2.
Based on the existing conditions data, the median sediment size (D50) found in the project streams ranges
from medium to very coarse gravel. T2-2 and one cross-section along T2 did have D50 values in the sand
range due to localized bank erosion. Eight of the thirteen pebble counts had D84 values in the small cobble
range or larger.
Based on the collected sediment and cross-section data, shear stress values were calculated using both
average channel boundary shear stress and a modified critical shear stress (USDA, Forest Service 2008).
The modified shear stress was calculated using the D84 values from field samples and compared to the
average channel boundary shear stress based on the existing and proposed channel dimensions and
slopes. The results are shown in the table below.
Mitigation Plan—112312020 Hair Sheep Stream Mitigation Bank
26

Table 7. Sediment Summary for Project Reaches
Mod if.
Critical
Predicted Grain
Avg Shear
D50
D84
Sample
Type
XS
Reach
Shear
Size Movement
Stress (Ib/sf)
(mm)
(mm)
Type
Stress
(mm)
(lb/sf)
Cooks Creek
Cooks
Existing
0.92
40
130
PC
0.96
Ref XSA
Creek
Cooks Creek
Cooks
Existing
0.63
27
94
PC
0.62
XSA
Creek
Cooks Creek
Cooks
Existing
0.77
22
72
PC
0.50
XSB
Creek
Cooks Creek
Cooks
Existing
0.77
8.4
23.6
Pavement
0.17
(Pavement)
Creek
Existing
T1 XSA
T1
1.03
8.6
28
PC
0.18
Existing
T1 XSB
T1
1.31
25
80
PC
0.56
Existing
T2-1 XSA
T2-1
1.02
59
130
PC
1.26
Existing
T2-2 XSA
T2-2
0.88
0.2
0.5
PC
0.0004
Existing
T2 Ref XSA
T2
0.77
8.4
25
PC
0.17
Existing
T2 XSA
T2
0.88
20
93
PC
0.50
Existing
T2 Ref XSB
T2
0.96
12
57
PC
0.28
Existing
T2 XSB
T2
0.79
0.6
9.3
PC
0.02
Existing
T2 XSC
T2
1.04
21
120
PC
0.56
Existing
T2
1.04
17
45
Pavement
0.35
(pavement)
Existing
T2 XSD
T2
0.96
27
77
PC
0.58
Cooks Creek
Cooks
Proposed
Start to Confl
0.81
40
130
PC
0.96
63
Creek
T1
Cooks Creek
Cooks
Proposed
0.87
22
72
PC
0.50
67
Confl T1 to End
Creek
Proposed
T1
T1
0.97
8.6
28
PC
0.18
75
Proposed
T1-1
T1-1
1.19
N/A
N/A
N/A
N/A
94
Proposed
T2-1
T2-1
0.96
59
130
PC
1.26
75
Proposed
T2-2
T2-2
0.66
0.21
0.54
PC
0.004
50
Proposed
T2 Upper
T2
0.65
8.4
25
PC
0.17
49
Proposed
T2 Middle
T2
0.83
12
57
PC
0.28
65
Proposed
T2 Lower
T2
1.15
27
77
PC
0.59
90
The calculations shows that Cooks Creek and T2 will both have adequate stream power to transport the
existing D84 material as shown by the critical shear stress values. T1 and T1-1 will experience a higher
average shear stress than the existing material in place. Stone reinforcement will be used to protect the
newly constructed riffles in T1 and T1-1 from excessive scour. Proposed riffle and cascade structures have
been designed with a mix of Class A, B, and natural stone; Class A (the smallest among Classes A and B)
has a modified critical shear stress that is large enough to withstand all of the predicted average channel
boundary stresses. The last column in the table above provides a predicted grain size that will move at the
calculated modified critical shear stress for the proposed channel. Given the mix of the constructed riffle,
106 mm equates to the midrange of the Class A Stone (approximately 4 in.). It can be expected that
approximately 85% of the constructed riffle stone will be greater than this diameter. Additionally, our
experience has revealed minimal movement of constructed riffle material when it is well mixed and placed
in the stream bed in similar design conditions.
Mitigation Plan-112312020 Hair Sheep Stream Mitigation Bank
27

6.9 Planting
All unforested portions of the project easement will be planted to establish a forested riparian buffer. An
estimated 12.0 acres will be reforested, but additional plantings may take place beyond this area to ensure
an adequate density across the site. The planting plan is shown in the attached project plan sheets (Section
13.1). Trees and shrubs will be planted at a density of 968 stems per acre (9 feet x 5 feet spacing) to
achieve a mature survivability of 210 stems per acre after seven years. Woody vegetation planting will be
conducted during dormancy. Species to be planted may consist of the following and any substitutions
from the planting plan will be taken from this list:
Zone 1
Wetland Status (Eastern
Common Name
Scientific Name
Mts & Piedmont)
Tag Alder
Alnus serrulata
OBL
River Birch
Betula nigra
FACW
Black Gum
Nyssa sylvatica
FAC
American Sycamore
Platanus occidentalis
FACW
Swamp Chestnut Oak
Quercus michauxii
FACW
Willow Oak
Quercus phellos
FAC
Zone 2
Wetland Status (Eastern
Common Name
Scientific Name
Mts & Piedmont)
Sugarberry
Celtis laevigata
FACW
American Persimmon
Diospyros virginiana
FAC
American Sycamore
Platanus occidentalis
FACW
White Oak
Quercus alba
FACU
Pin Oak
Quercus palustris
FACW
Willow Oak
Quercus phellos
FAC
On the restored stream banks, live stakes will be used to provide natural stabilization. Species identified
for live staking include:
Common Name
Scientific Name
Silky Dogwood
Corpus amomum
Black Willow
Salix nigra
Silky Willow
Salixsericea
A custom herbaceous seed mix composed of native species will also be developed and used to further
stabilize the easement area as needed.
6.10 Project Assets
The tables below outline the anticipated project assets that will be produced from the HSSMB project and
the stream mitigation types are shown in Figure 9. The final Stream Mitigation Credit (SMC) total includes
additional credits generated from USACE Wilmington District's Stream Buffer Credit Calculator (January
2018), an addition of 300 SMCs. The detailed results from the buffer analysis are included in Section 13.2.
Mitigation Plan—112312020 Hair Sheep Stream Mitigation Bank
28

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Table 9. Length and Summations by Mitigation Category
Non -riparian
Stream
Riparian Wetland
Restoration Level
Wetland
Buffer (square feet)
(linear feet)
(acres)
(acres)
Non-
Riverine
Riverine
Restoration
2,250
Enhancement
Enhancement 1
950
Enhancement 11
890
Creation
Preservation
High Quality Preservation
Table 10. Overall Assets Summary
Hair Sheep Stream Mitigation Bank
Overall Assets Summary
Asset Category
Overall Credits
Stream
3,539
(includes additional 300 SMCs from Stream Buffer Credit
Calculator)
RP Wetland
NR Wetland
Buffer
Mitigation Plan—112312020
Hair Sheep Stream Mitigation Bank
30

Extent of Project Parcels —2.
Proposed Easement (12.4 ac)
Off -Site Streams
Proposed Mitigation - 3,539 SMC*
Restoration (2,2501f / 2,250 SMC)
Enhancement 1 (950 If/ 633 SMC)
Enhancement 2 (890 If/ 356 SMC)
* Includes an additional 300 SMCs
based on buffer analysis tool r
} "
k � "
0 150 300
Feet
................ .............. ...........
FIGURE 9. PROJECT ASSET MAP
HAIR SHEEP STREAM MITIGATION BANK
SURRY COUNTY, NC
31
N
A Source NC Statewide
Orthotmagery, 2014.

7.0 PERFORMANCE STANDARDS
Monitoring of the site shall occur for a minimum of seven years following construction. The following
performance standards for stream mitigation will follow the Wilmington District Stream and Wetland
Compensatory Mitigation Update (NCIRT 2016) and will be used to judge site success.
Vegetation Performance
The site must achieve a woody stem density of 260 stems/acre after five years and 210 stems/acre after
seven years to be considered successful. Trees in each plot must average 6 feet in height at Year 5 and 8
feet at Year 7. A single species may not account for more than 50% of the required number of stems within
any plot. Volunteers must be present for a minimum of two growing seasons before being included in
performance standards in Year 5 and Year 7. If monitoring indicates that any of these standards are not
being met, corrective actions will take place.
Stream Hydrologic Performance
During the monitoring period, a minimum of four bankfull events must be recorded. These bankfull events
must occur in separate monitoring years. Bankfull events will be verified using a minimum of one
automatic stream monitoring gauge on Tributary 2 to record daily stream depth readings. The project's
intermittent streams must also show a minimum of 30 continuous flow days within a calendar year
(assuming normal precipitation). A "normal" year will be based on NRCS climatological data for Surry
County with the 30th to 70th percentile thresholds as the range of normal, as documented in the USACE
Technical Report "Accessing and Using Meteorological Data to Evaluate Wetland Hydrology, April 2000."
Stream Geomorphology Performance
The site's geomorphology for all reaches will be monitored per the NCIRT 2016 monitoring guidelines. The
bank height ratio (BHR) should not exceed 1.2 and the entrenchment ratio (ER) must not fall below 2.2 for
C and E channels. BHR and ER at any measured riffle cross-section should not change by more than 10%
from the baseline condition during any given monitoring interval (e.g., no more than 10% between years
1 and 2, 2 and 3, 3 and 5, or 5 and 7). There will be an overall assessment for each reach to distinguish
localized versus systemic concerns for that stream. Adjustment and lateral movement following
construction and as the channel settles over the monitoring period are to be expected. Geomorphological
measurements of cross -sections will be used to determine if any adjustments that occur are out of the
range typically expected for this type of stream.
8.0 MONITORING PLAN
Monitoring of the HSSMB shall consist of the collection and analysis of stream hydrology, stability, and
vegetation survivability data to support the evaluation of the project in meeting established performance
standards described above. The Proposed Monitoring Plan in Figure 10 shows the proposed locations of
monitoring features described below.
Vegetation Monitoring
Vegetation monitoring will take place between July 1st and leaf drop. The success of the riparian buffer
plantings will be evaluated using thirteen 0.02-acre square or rectangular plots within the planted stream
buffer. Seven plots will be permanently installed, while the remainder will be randomly placed at the time
of each monitoring visit. Vegetation must be planted and plots established at least 180 days prior to the
start of the first year of monitoring.
Mitigation Plan—112312020 Hair Sheep Stream Mitigation Bank
32

In the permanent plots, the plant's height, species, location, and origin (planted versus volunteer) will be
noted. In the random plots, species and height will be recorded. In all plots, invasive stems will also be
recorded to determine the percentage of invasive stems present. Additionally, a photograph will be taken
of each plot. Beginning at the end of the first growing season, the site's vegetation will be monitored in
years 1, 2, 3, 5, and 7.
Stream Hydrologic Monitoring
Bankfull events on -site will be verified using one automatic stream monitoring gauge on T2. Additional
gauges and/or recording devices such as cameras (set to record a photo or video a minimum of once per
day) will be installed on the intermittent reaches of T1, T1-1, and T2-1 to document the presence of flow.
Stream Geomorphology Monitoring
For stream monitoring, the purpose of monitoring is to evaluate the stability of the restored stream.
Following the procedures established in the USDA Forest Service Manual, Stream Channel Reference Sites
(Harrelson et al. 1994) and the methodologies utilized in the Rosgen stream assessment and classification
system (1994 and 1996), data collected will consist of detailed dimension measurements, longitudinal
profiles, and bed materials sampling.
Dimension
Ten permanent cross -sections will be established at the HSSMB, one set of a riffle and pool each on Cooks
Creek and T1, and three sets on T2, the longest of the project reaches. The extents of each cross-section
will be recorded by either conventional survey or GPS. The cross -sectional surveys shall provide a detailed
measurement of the stream and banks and will include points on the adjacent floodplain or valley, at the
top of bank, bankfull, at all breaks in slope, the edge of water, and thalweg. Width/depth, bank height
and entrenchment ratios, as well as bankfull cross -sectional area, width, max depth and mean depth will
be calculated for each riffle cross-section based on the survey data. The BHR will be measured by using a
constant bankfull area over the monitoring period and adjusting the bankfull elevation each monitoring
event based on how this area fits in the cross -sectional data. The revised bankfull elevation will then be
used to calculate BHR along with the current low bank height. Width/depth ratios, bankfull cross -sectional
area, width, max depth and mean depth will be calculated for each pool cross-section. Cross-section
measurements will take place in Years 1, 2, 3, 5, and 7.
Profile
A detailed longitudinal profile will be conducted along the Restoration and Enhancement I portions of the
project streams during the as -built survey. Measurements will include slopes (average, pool, and riffle) as
well as calculations of pool -to -pool spacing. No additional profile measurements will be taken during the
monitoring period unless deemed necessary due to concerns about bed elevation adjustments.
Visual Assessment
An annual site walk will be conducted at the end of each monitoring period to document any problem
areas. Specific problem areas that could arise include excessive bank erosion, bed deposition or
aggradation, problems with the installed structures, or sparse vegetative cover. The findings of the visual
assessment as well as any recommended corrective actions for problem areas will be summarized in the
monitoring reports by way of a Current Conditions Plan View (CCPV) figure.
Photograph reference points (PRPs) will be established to assist in characterizing the site and to allow
qualitative evaluation of the site conditions. The location of each photo point will be marked in the
Mitigation Plan—112312020 Hair Sheep Stream Mitigation Bank
33

monitoring plan and the bearing/orientation of the photograph will be documented to allow for repeated
use.
Wetland Hydrologic Monitoring
As supplementary information to track the wetland hydrology of the existing riparian wetlands, daily
groundwater data will be collected from 3 automatic wells in wetlands WA, WB, and WC, respectively,
over the 7-year monitoring period following implementation.
Reporting
The monitoring report shall provide a project data chronology that will facilitate an understanding of
project status and trends and assist in decision making regarding project close-out. The report will
document the monitored components and include all collected data, analyses, and photographs. The first
scheduled monitoring will be conducted during the first full growing season following project completion.
The site will be monitored for performance standards for seven years as needed after completion of
construction. Full monitoring reports will be completed in Years 1, 2, 3, 5, and 7. Limited monitoring
reports will be submitted in Years 4 and 6 (CCPV, photos, stream gauge data, and site narrative).
Table 11. Monitoring Requirements
Hair Sheep Stream Restoration Site
Required
Parameter
Quantity
Frequency
Notes
Pattern and
Restoration and
Once, during as-
Additional measurements in later years
Yes
Profile
Enhancement I reaches
built survey
may be taken as necessary.
Yes
Stream
10 cross -sections
Monitoring Years
Dimension
(5 riffles, 5 pools)
1, 2, 3, 5, and 7
1 pressure transducer gauge
Yes
Stream
on T2, plus 3 other gauges
Annual
Hydrology
or cameras on T1, T1-1, and
T2-1.
Yes
Wetland
3 pressure transducer
Annual —
One each in wetlands WA, WB, and WC.
Hydrology
gauges
throughout year
Yes
Vegetation
7 permanent and 6 random
Monitoring Years
Minimum size of 0.02 acre
vegetation monitoring plots
1, 2, 3, 5, and 7
Yes
Visual
Annual
Assessment
Exotic and
Locations of exotic and nuisance
Yes
nuisance
Annual
vegetation will be mapped
vegetation
Yes
Project
Semi-annual
Locations of vegetation damage, boundary
boundary
encroachments, etc. will be mapped
Mitigation Plan—112312020
Hair Sheep Stream Mitigation Bank
34

9.0 ADAPTIVE MANAGEMENT PLAN
In the event the mitigation site or a specific component of the mitigation site fails to achieve the necessary
performance standards as specified in the mitigation plan, KCI shall notify the members of the IRT and
work with the IRT to develop contingency plans and remedial actions.
10.0 LONG-TERM MANAGEMENT PLAN
KCI will institute a long-term management plan to assess the on -going condition and implement any
maintenance provisions to maintain performance of the site. The conservation easements will ensure that
only IRT-allowable activities take place.
To monitor the project's continued success, the long-term management plan will be implemented
following the completed monitoring period. All components of the mitigation bank will be inspected
annually or less frequently as needed to ensure that the terms of the easement are met in perpetuity. All
reporting will be documented and kept on file for future reference.
This easement will be held by the Unique Places to Save (UP2S). UP2S shall be responsible for periodic
inspection of the site to ensure that restrictions required in the conservation easement are upheld.
Appropriate endowment funds required to uphold easement terms will be determined prior to easement
execution. Additional information on the Long Term Management Fund can be found in Appendix 13.5.
11.0 FINANCIAL ASSURANCES
KCI has significant experience procuring and managing Financial Assurances for mitigation projects. This
project will involve securing a series of casualty insurance policies that will serve as the financial
assurances for the various phases of this project, including construction, monitoring, and adaptive
management. This insurance will be secured at two-year increments. USACE shall receive written
notification at least 120 days in advance of any termination or revocation of insurance secured for
financial assurance during the Construction Stage or the Monitoring and Adaptive Management Stage.
The Bank Sponsor is responsible for providing Financial Assurances for the performance and completion
of Bank construction, management, monitoring, and Remedial Action in accordance with this MBI, as
set forth in this Section. KCI shall provide written confirmation from the agency or Conservation
Easement Holder, as applicable, that the requirement was completed to each member of the IRT in
accordance with this Section upon furnishing each of the following Financial Assurances.
See Section 13.5 in the appendices for detailed information on the financial assurances.
Mitigation Plan — 112312020
Hair Sheep Stream Mitigation Bank
W.

12.0 REFERENCES
Center for Watershed Protection. 2003. Impacts of Impervious Cover on Aquatic Systems: Watershed
Protection Research Monograph. Center for Watershed Protection, Ellicott City, MD. Pages 1-158
Environmental Laboratory. 1987. Corps of Engineers Wetlands Delineation Manual, Technical Report
Y-87-1. Vicksburg, MS: U.S. Army Engineer Waterways Experiment Station.
Griffith, G., J. Omernik, and J. Comstock. 2002. Ecoregions of North Carolina, Regional Descriptions. US
E.P.A. Last accessed 8/2017 at:
https://archive.epa.gov/wed/ecoregions/web/html/ncsc—eco.html
Harman, W.H. et al. 2000. Bankfull Regional Curves for North Carolina Mountain Streams. In: Kane, D.L.
(Ed.). Proc. AWRA Conf. Water Resources in Extreme Environments, Anchorage, AK. Pp. 185-190.
Harman, W. and R. Starr. 2011. Natural Channel Design Review Checklist. US Fish and Wildlife Service,
Chesapeake Bay Field Office, Annapolis, MD and US Environmental Protection Agency, Office of
Wetlands, Oceans, and Watersheds, Wetlands Division. Washington, D.C. EPA 843-B-12-005
Harman, W., R. Starr, M. Carter, K. Tweedy, M. Clemmons, K. Suggs, C. Miller. 2012. A Function -Based
Framework for Stream Assessment and Restoration Projects. US Environmental Protection
Agency, Office of Wetlands, Oceans, and Watersheds, Washington, DC EPA 843-K-12-006.
NCDEQ, Division of Water Resources. Draft 2018 303(d) list. Raleigh, NC. Last accessed at:
https://files.nc.gov/ncdeq/Water%20Quality/Planning/TMDL/303d/2018/2018-DRAFT-NC-303-
d--ListwCover.pdf
North Carolina Interagency Review Team. 2016. Wilmington District Stream and Wetland Compensatory
Mitigation Update. Last accessed at: http://saw-reg.usace.army.mil/PN/2016/Wilmington-District-
Mitigation-Update.pdf
Shields, Ing. A., W. P. Ott, and J. C. Van Uchelen. 1936. Application of Similarity Principles and Turbulence
Research to Bed -load Movement. Pasadena, CA: Soil Conservation Service, California Institute of
Technology
Simon, A., W. Dickerson, and A. Heins. 2004. Suspended -sediment transport rates at the 1.5-year
recurrence interval for ecoregions of the United States: transport conditions at the bankfull and
effective discharge? Geomorphology 58: 243-262.
Simon, A. and M. Rinaldi. 2006. Disturbance, stream incision, and channel evolution: The roles of excess
transport capacity and boundary materials in controlling channel response. Geomorphology 79:
361-383.
Stream Mitigation Guidelines, April 2003, US Army Corps of Engineers Wilmington District.
Mitigation Plan—112312020
Hair Sheep Stream Mitigation Bank
37

USDA, Forest Service, National Technology and Development Program. 2008. Stream Simulation: An
Ecological Approach to Providing Passage for Aquatic Organisms at Road -Stream Crossings.
Appendix E: Methods for Streambed Mobility/Stability Analysis. Last accessed 9/2016 at:
http://www.fs.fed.us/eng/pubs/pdf/StreamSimulation/
USDA, Natural Resources Conservation Service. 2018. Web Soil Survey. Last accessed at:
http://websoilsurvey.sc.egov.usda.gov/App/WebSoilSurvey.aspx
USGS. 2018. Alligator Back Formation; Gneiss. Last accessed at:
htt p s://m rd ata . u sgs. go v/g eo I ogy/state/sg m e-u n it. p h p?unit= N CZa bg%3 B 2
Mitigation Plan—112312020
Hair Sheep Stream Mitigation Bank
38

13.0 APPENDICES
Mitigation Plan—112312020 Hair Sheep Stream Mitigation Bank

Mitigation Plan—112312020 Hair Sheep Stream Mitigation Bank

13.1 Plan Sheets
Mitigation Plan—112312020 Hair Sheep Stream Mitigation Bank

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13.2 Data Analysis/Supplemental Information and Maps
Existing Conditions Cross -Sections and Map
Sediment Sampling (Pebble Counts and Pavement Samples)
Stream Morphological Tables
Buffer Analysis Maps and Table
Mitigation Plan—112312020 Hair Sheep Stream Mitigation Bank

Mitigation Plan—112312020 Hair Sheep Stream Mitigation Bank

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0 150 300 HAIR SHEEP STREAM MITIGATION BANK source: NCOneMap
Feet SURRY COUNTY, NC A
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QProject Easement
QSheet Boundaries
Buffer Distance From TOB
- 0-15'
- 15-20'
- 20-25'
25-30'
30-50'
50-75'
- 75-100'
- 100-125'
- 125-150'
Proposed Mitigation - 3,539 SMC*
Restoration (2,250 If / 2,250 SMC)
Enhancement 1 (950 If / 633 SMC)
En hancem ent 2 (890 If / 356 SMC)
Includes an additional 300
Credit for additional Buffer Widths
0 50 100 N
Feet n
So— NC Stat—di N
Odh..W.ry, 2014.
k
1I
NC CneMap. Nm f tip_. w, pnio li„f m
EASEMENT WIDTH EXHIBIT
HAIR SHEEP STREAM MITIGATION BANK
SURRY COUNTY, NC
SHEET 1 of 3

QProject Easement
QSheet Boundaries
_
k.
Buffer Distance From TOB
IN,
0-15.
:
- 15-20'
- 20-25'
25-30'
30-50'
ILK
50-75'
ii
- 75-100'
- 100-125'
r
- 125-150'
Proposed Mitigation - 3,539 SMC*
'
Restoration (2,250 If / 2,250 SMC)
Enhancem ent 1(950 If/633 SMC)
Enhancement 2 (890 If / 356 SMC)
Includes an additional 300
x
Credit for additional Buffer Widths
r3— NC CneM ap. NC Cep' f graphic lnf
0 50 100 N
gFeet
EASEMENT WIDTH EXHIBIT
n
HAIR SHEEP STREAM MITIGATION BANK
SHEET 2 of 3
Sourm: NC Statewide N
Odh..W.ry, 2014.
SURRY COUNTY, NC

13.3 Site Protection Instrument
Mitigation Plan—112312020 Hair Sheep Stream Mitigation Bank

Mitigation Plan—112312020 Hair Sheep Stream Mitigation Bank

Changes to the Template appear in RED.
RECORDING REQUESTED BY
AND WHEN RECORDED MAIL TO:
SPACE ABOVE THIS LINE FOR RECORDER'S USE
PERMANENT CONSERVATION EASEMENT
THIS CONSERVATION EASEMENT ("Conservation Easement") made this_day of
20_ by and between Robert EdgarSmith, Jr. and Treva Nichols Smith,
("Grantor") and Unique Places to Save ("Grantee").
The designation Grantor and Grantee as used herein shall include said parties, their
heirs, successors and assigns, and shall include singular, plural, masculine, feminine or neuter
as required by context.
RECITALS
WHEREAS, Grantor owns in fee simple certain real property situated, lying and being in
Surry County, North Carolina, more particularly described in Exhibit A attached hereto and
incorporated herein (the "Property");
WHEREAS, Grantee is a charitable, not -for -profit or educational corporation,
association, or trust qualified under § 501 (c)(3) and § 170 (h) of the Internal Revenue Code,

the purposes or powers of which include one or more of the purposes (a) — (d) listed below;
(a) retaining or protecting natural, scenic, or open -space aspects of
real property;
(b) ensuring the availability of real property for recreational, educational, or
open -space use;
(c) protecting natural resources;
(d) maintaining or enhancing air or water quality.
WHEREAS, Grantor and Grantee recognize the conservation, scenic, natural, or
aesthetic value of the property in its natural state, which includes the following natural
communities: wetlands, streams and riparian buffers. The purpose of this Conservation
Easement is to maintain streams, wetlands and riparian resources and other natural values of
approximately 12.42 acres, more or less, and being more particularly described in Exhibit B
attached hereto and incorporated fully herein by reference (the "Conservation Easement
Area"), and prevent the use or development of the Conservation Easement Area for any
purpose or in any manner that would conflict with the maintenance of its natural condition.
WHEREAS, the restoration, enhancement and preservation of the Conservation
Easement Area is a condition of the approval of the Mitigation Banking Instrument (MBI) and
Mitigation Plan for the Hair Sheep Stream Mitigation Bank, Department of the Army (DA)
Action ID Number SAW-2018-00712, entitled "Agreement to Establish the KCI Yadkin 01
Umbrella Mitigation Bank in the Yadkin River Basin within the State of North Carolina",
entered into by and between KCI Technologies, Inc. acting as the Bank Sponsor and the
Wilmington District Corps of Engineers (Corps), in consultation with the North Carolina
Interagency Review Team (IRT). The Hair Sheep Stream Mitigation Site has been approved
by the Corps for use as a mitigation bank to compensate for unavoidable stream and wetland
impacts authorized by DA permits.
WHEREAS, Grantor and Grantee agree that third -party rights of enforcement shall be
held by the U.S. Army Corps of Engineers, Wilmington District ('Third -Party," to include any
successor agencies), and may be exercised through the appropriate enforcement agencies of
the United States, and that these rights are in addition to, and do not limit, the rights of
enforcement under the Department of the Army instrument number SAW- _("Mitigation
Banking Instrument"), or any permit or certification issued by the Third -Party.
NOW, THEREFORE, for and in consideration of the covenants and representations
contained herein and for other good and valuable consideration, the receipt and legal
sufficiency of which is hereby acknowledged, Grantor hereby unconditionally and irrevocably
grants and conveys unto Grantee, its heirs, successors and assigns, forever and in perpetuity
a Conservation Easement of the nature and character and to the extent hereinafter set forth,
over the Conservation Easement Area described on Exhibit B, together with the right to
preserve and protect the conservation values thereof, as follows:

DURATIONOF EASEMENT
This Conservation Easement shall be perpetual. This Conservation Easement is an easement in
gross, runs with the land and is enforceable by Grantee against Grantor, Grantor's personal
representatives, heirs, successors and assigns, lessees, agents and licensees.
ARTICLE II.
PROHIBITED AND RESTRICTED ACTIVITIES
Any activity on, or use of, the Conservation Easement Area inconsistent with the
purpose of this Conservation Easement is prohibited. The Conservation Easement Area shall be
preserved in its natural condition and restricted from any development that would impair or
interfere with the conservation values of the Conservation Easement Area.
Without limiting the generality of the foregoing, the following activities and uses are
expressly prohibited, restricted or reserved as indicated hereunder:
A. Disturbance of Natural Features. Any change disturbance, alteration or
impairment of the natural features of the Conservation Easement Area or any introduction of
non-native plants and/or animal species is prohibited.
B. Construction. There shall be no constructing or placing of any building, mobile
home, asphalt or concrete pavement, billboard or other advertising display, antenna, utility
pole, tower, conduit, line, pier, landing, dock or any other temporary or permanent structure
or facility on or above the Conservation Easement Area.
C. Industrial, Commercial and Residential Use. Industrial, residential and/or
commercial activities, including any rights of passage for such purposes are prohibited.
D. Agricultural, Grazing and Horticultural Use. Agricultural, grazing, animal
husbandry, and horticultural use of the Conservation Easement Area are prohibited.
E. Vegetation. There shall be no removal, burning, destruction, harming, cutting or
mowing of trees, shrubs, or other vegetation in the Conservation Easement Area except as
provided in the Mitigation Plan. Mowing of invasive and herbaceous vegetation for purposes
of enhancing planted or volunteer trees and shrubs approved in the Mitigation Plan is allowable
once a year for no more than five consecutive years from the date on page 1 of this
Conservation Easement, except where mowing will negatively impact vegetation or disturb
soils. Mowing activities shall only be performed by KCI Technologies Inc. and shall not violate
any part of Item L of Article II.
F. Roads and Trails. There shall be no construction of roads, trails or walkways on the
Conservation Easement Area; nor enlargement or modification to existing roads, trails or

walkways.
G. Signage. No signs shall be permitted on or over the Conservation Easement Area,
except the posting of no trespassing signs, signs identifying the conservation values of the
Conservation Easement Area, signs giving directions or proscribing rules and regulations for the
use of the Conservation Easement Area and/or signs identifying the Grantor as owner of the
Conservation Easement Area.
H. Dumping or Storage. Dumping or storage of soil, trash, ashes, garbage, waste,
abandoned vehicles, appliances, machinery or hazardous substances, or toxic or hazardous
waste, or any placement of underground or aboveground storage tanks or other materials on
the Conservation Easement Area is prohibited.
I. Excavation, Dredging or Mineral Use. There shall be no grading, filling, excavation,
dredging, mining or drilling; no removal of topsoil, sand, gravel, rock, peat, minerals or other
materials, and no change in the topography of the land in any manner on the Conservation
Easement Area, except to restore natural topography or drainage patterns. For purposes of
restoring and enhancing streams and wetlands within the Conservation Easement Area, KCI
Technologies, Inc. is allowed to perform grading, filling, and excavation associated with stream
and wetland restoration and enhancement activities as described in the Mitigation Plan and
authorized by Department of the Army Nationwide Permit 27.
J. Water Quality and Drainage Pattern. There shall be no diking, draining, dredging,
channeling, filling, leveling, pumping, impounding or related activities, or altering or tampering
with water control structures or devices, or disruption or alteration of the restored, enhanced,
or created drainage patterns. In addition, diverting or causing or permitting the diversion of
surface or underground water into, within or out of the easement area by any means, removal
of wetlands, polluting or discharging into waters, springs, seeps, or wetlands, or use of pesticide
or biocides is prohibited.
K. Development Rights. No development rights that have been encumbered or
extinguished by this Conservation Easement shall be transferred pursuant to a transferable
development rights scheme or cluster development arrangement or otherwise.
L. Vehicles. The operation of mechanized vehicles, including, but not limited to,
motorcycles, dirt bikes, all -terrain vehicles, cars and trucks is prohibited other than for
temporary or occasional access by KCI Technologies Inc., the Grantee, its employees and
agents, successors, assigns, and the Corps for purposes of constructing, maintaining and
monitoring the restoration, enhancement and preservation of streams, wetlands and
riparian areas within the Conservation Easement Area.
M. Other Prohibitions. Any other use of, or activity on, the Conservation Easement
Area which is or may become inconsistent with the purposes of this grant, the preservation of
the Conservation Easement Area substantially in its natural condition, or the protection of its

environmental systems, is prohibited.
ARTICLE III
GRANTOR'S RESEVERED RIGHTS
The Grantor expressly reserves for himself, his personal representatives, heirs,
successors or assigns, the right to continue the use of the Conservation Easement Area for all
purposes not inconsistent with this Conservation Easement, including, but not limited to, the
right to quiet enjoyment of the Conservation Easement Area, the rights of ingress and egress,
the right to hunt, fish, and hike on the Conservation Easement Area, the right to sell, transfer,
gift or otherwise convey the Conservation Easement Area, in whole or in part, provided such
sale, transfer or gift conveyance is subject to the terms of, and shall specifically reference, this
Conservation Easement.
Notwithstanding the foregoing Restrictions, Grantor reserves for Grantor, its
successors and assigns, including KCI Technologies, Inc. acting as the Bank Sponsor, the right
to construct and perform activities related to the restoration, enhancement, and preservation
of streams, wetlands and riparian areas within the Conservation Easement Area in accordance
with the approved Hair Sheep Stream Mitigation Plan, and the Mitigation Banking Instrument
described in the Recitals of this Conservation Easement.
ARTICLE IV.
GRANTEE'S RIGHTS
The Grantee or its authorized representatives, successors and assigns, and the Corps,
shall have the right to enter the Property and Conservation Easement Area at all reasonable
times for the purpose of inspecting the Conservation Easement Area to determine if the
Grantor, or his personal representatives, heirs, successors, or assigns, is complying with the
terms, conditions, restrictions, and purposes of this Conservation Easement. The Grantee, KCI
Technologies Inc., and its authorized representatives, successors and assigns, and the Corps
shall also have the right to enter and go upon the Conservation Easement Area for purposes
of making scientific or educational observations and studies, and taking samples. The
easement rights granted herein do not include public access rights.

ARTICLE V
ENFORCEMENTAND REMEDIES
A. To accomplish the purposes of this Easement, Grantee, and the Corps are allowed
to prevent any activity on or use of the Conservation Easement Area that is inconsistent with
the purposes of this Easement and to require the restoration of such areas or features of the
Conservation Easement Area that may be damaged by such activity or use. Upon any breach
of the terms of this Conservation Easement by Grantor that comes to the attention of the
Grantee, the Grantee shall notifythe Grantor in writing of such breach. The Grantor shall have
30 days after receipt of such notice to correct the conditions constituting such breach. If the
breach remains uncured after 30 days, the Grantee may enforce this Conservation Easement
by appropriate legal proceedings including damages, injunctive and other relief.
Notwithstanding the foregoing, the Grantee reserves the immediate right, without notice, to
obtain a temporary restraining order, injunctive or other appropriate relief if the breach of
the terms of this Conservation Easement is or would irreversibly or otherwise materially
impair the benefits to be derived from this Conservation Easement. The Grantor and Grantee
acknowledge that under such circumstances damage to the Grantee would be irreparable and
remedies at law will be inadequate. The rights and remedies of the Grantee provided
hereunder shall be in addition to, and not in lieu of, all other rights and remedies available to
Grantee in connection with this Conservation Easement. The costs of a breach, correction or
restoration, including the Grantee's expenses, court costs, and attorneys' fees, shall be paid
by Grantor, provided Grantor is determined to be responsible for the breach. The Corps shall
have the same rights and privileges as the said Grantee to enforce the terms and conditions
of this Conservation easement.
B. No failure on the part of the Grantee to enforce any covenant or provision hereof
shall discharge or invalidate such covenant or any other covenant, condition, or provision
hereof or affect the right to Grantee to enforce the same in the event of a subsequent breach
or default.
C. Nothing contained in this Conservation Easement shall be construed to entitle
Grantee to bring any action against Grantor for any injury or change in the Conservation
Easement Area resulting from causes beyond the Grantor's control, including, without
limitation, fire, flood, storm, war, acts of God or third parties, except Grantor's lessees or
invitees; or from any prudent action taken in good faith by Grantor under emergency
conditions to prevent, abate, or mitigate significant injury to life, damage to property or harm
to the Conservation Easement Area resulting from such causes.

ARTICLE VI
MISCELLANEOUS
A. Warranty. Grantor warrants, covenants and represents that it owns the Property
in fee simple, and that Grantor either owns all interests in the Propertywhich may be impaired
by the granting of this Conservation Easement or that there are no outstanding mortgages,
tax liens, encumbrances, or other interests in the Property which have not been expressly
subordinated to this Conservation Easement. Grantor further warrants that Grantee shall
have the use of and enjoy all the benefits derived from and arising out of this Conservation
Easement, and that Grantor will warrant and defend title to the Property against the claims of
all persons. _
B. Subsequent Transfers. The Grantor agrees to incorporate the terms of this
Conservation Easement in any deed or other legal instrument that transfers any interest in all
or a portion of the Conservation Easement Area. The Grantor agrees to provide written notice
of such transfer at least sixty (60) days prior to the date of the transfer. The Grantor and
Grantee agree that the terms of this Conservation Easement shall survive any merger of the
fee and easement interests in the Conservation Easement Area or any portion thereof and
shall not be amended, modified or terminated without the prior written consent and approval
of the Corps.
C. Assignment. The parties recognize and agree that the benefits of this Conservation
Easement are in gross and assignable provided, however that the Grantee hereby covenants
and agrees, that in the event it transfers or assigns this Conservation Easement, the
organization receiving the interest will be a qualified holder pursuant to 33 CFR 332.7 (a)(1),
N.C. Gen. Stat. § 121-34 et seq. and § 501 (c)(3) and § 170 (h) of the Internal Revenue Code,
and the Grantee further covenants and agrees that the terms of the transfer or assignment
will be such that the transferee or assignee will be required to continue in perpetuity the
conservation purposes described in this document.
D. Entire Agreement and Severability. The Mitigation Banking Instrument: MBI with
corresponding Mitigation Plan, and this Conservation Easement sets forth the entire
agreement of the parties with respect to the Conservation Easement and supersedes all prior
discussions, negotiations, understandings or agreements relating to the Conservation
Easement. If any provision is found to be void or unenforceable by a court of competent
jurisdiction, the remainder shall continue in full force and effect.
E. Obligations of Ownership. Grantor is responsible for any real estate taxes,
assessments, fees, or charges levied upon the Property. Grantor shall keep the Property free
of any liens or other encumbrances for obligations incurred by Grantor, except those incurred
after the date hereof, which are expressly subject and subordinate to the Conservation
Easement. Grantee shall not be responsible for any costs or liability of any kind related to the
ownership, operation, insurance, upkeep, or maintenance of the Property, except as
expressly provided herein. Nothing herein shall relieve the Grantor of the obligation to

comply with federal, state or local laws, regulations and permits that may apply to the
exercise of the Reserved Rights.
F. Long -Term Management. If livestock operations will be maintained on the
property, Grantor is responsible for all long-term management activities associated with
fencing to ensure livestock do not have access to the Protected Property. These activities
include the maintenance and/or replacement offence structures, as deemed necessary by the
Grantee, to ensure the aquatic resource functions within the boundaries of the Protected
Property are sustained.
G. Extinguishment. In the event that changed conditions render impossible the
continued use of the Conservation Easement Area for the conservation purposes, this
Conservation Easement may only be extinguished, in whole or in part, byjudicial proceeding.
H. Eminent Domain. Whenever all or part of the Conservation Easement Area is taken
in the exercise of eminent domain so as to substantially abrogate the Restrictions imposed by
this Conservation Easement, Grantor and Grantee shall join in appropriate actions at the time
of such taking to recover the full value of the taking, and all incidental and direct damages
due to the taking.
I. Proceeds. This Conservation Easement constitutes a real property interest
immediately vested in Grantee. In the event that all or a portion of the Conservation Easement
Area is sold, exchanged, or involuntarily converted following an extinguishment or the exercise
of eminent domain, Grantee shall be entitled to the fair market value of this Conservation
Easement as determined at the time of the extinguishment or condemnation.
J. Notification. Any notice, request for approval, or other communication required
under this Conservation Easement shall be sent by registered or certified mail, postage
prepaid, to the following addresses (or such address as may be hereafter specified by notice
pursuant to this paragraph):
To Grantor:
Robert Edgar Smith. Jr.
Treva Nichols Smith
2240 Maple Grove Church Road
Lowgap, North Carolina 27024
336-401-1149 (mobile)

To Grantee:
Unique Places to Save (UP2S)
Post Office Box 1183
Chapel Hill, NC 27514-1183
Attn: Jeff Fisher
919-428-2040
To Sponsor:
KCI Technologies, Inc.
4505 Falls of the Neuse Road, Suite 400
Raleigh, North Carolina 27609
Attn: Gary M. Mryncza, PE
919-783-9214
To the Corps:
US Army Corps of Engineers
Wilmington District Regulatory Division
69 Darlington Avenue
Wilmington, NC 28403
K. Failure of Grantee. If at any time Grantee is unable or fails to enforce this
Conservation Easement, or if Grantee ceases to be a qualified grantee, and if within a
reasonable period of time after the occurrence of one of these events Grantee fails to make
an assignment pursuant to this Conservation Easement, then the Grantee's interest shall
become vested in another qualified grantee in accordance with an appropriate proceeding in
a court of competent jurisdiction.
L. Amendment. This Conservation Easement maybe amended, but only in a writing
signed by all parties hereto, and provided such amendment does not affect the qualification
of this Conservation Easement or the status of the Grantee under any applicable laws, and is
consistent with the conservation purposes of this grant.
M. Present Condition of the Conservation Easement Area. The wetlands, scenic,
resource, environmental, and other natural characteristics of the Conservation Easement
Area, and its current use and state of improvement, are described in Section 3.0 of the
Mitigation Plan, prepared by Grantor and acknowledged by the Grantor and Grantee to be
complete and accurate as of the date hereof. Both Grantor and Grantee have copies of this
report. It will be used by the parties to assure that any future changes in the use of the
Conservation Easement Area will be consistent with the terms of this Conservation Easement.
However, this report is not intended to preclude the use of other evidence to establish the
present condition of the Conservation Easement Area if there is a controversy over its use.

TO HAVE AND TO HOLD the said rights and easements perpetually unto Grantee for the
aforesaid purposes.
IN TESTIMONY WHEREOF, the Grantor has hereunto set his hand and seal, the day and
year first above written.
Robert Edgar Smith, Jr.
Treva Nichols Smith
NORTH CAROLINA
COUNTY OF
I, , a Notary Public in and for the County and State aforesaid,
do hereby certify that , Grantor, personally appeared before me
this day and acknowledged the execution of the foregoing instrument.
IN WITNESS WHEREOF, I have hereunto set my hand and Notary Seal this the day
of , 20_.
Notary Public
My commission expires:

Exhibit A
Robert E. Smith Property
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Exhibit B
The following conservation easement parcels, all as shown on that certain plat entitled "Final Plat Conservation
Easement for Unique Places to Save: "Hair Sheep" recorded in Plat Book , Page , Surry County
Registry.
CONSERVATION EASEMENT #1
A PARCEL OF LAND TO BE USED FOR CONSERVATION EASEMENT PURPOSES LOCATED ON LANDS NOW OR
FORMERLY OWNED BY ROBERT EDGAR SMITH JR AND TREVA SMITH (TAX PIN 499900887042) AS RECORDED IN
BOOK 1362, PAGE 309, LOCATED IN STEWARTS CREEK TOWNSHIP, SURRY COUNTY, NORTH CAROLINA AND BEING
MORE PARTICULARLY DESCRIBED AS FOLLOWS:
COMMENCING AT A FOUND IRON PIPE 5/8" AT THE SOUTHEAST CORNER OF SAID SMITH LANDS; POINT ALSO
BEING ON THE NORTH LINE OF IINTERSTATE 74 AND HAVING NORTH CAROLINA STATE PLANE COORDINATES OF
N:996,958.54, E:1,499,273.15. THENCE N 01°39'56" W, ON THE EAST LINE OF SAID SMITH LANDS, A DISTANCE OF
144.09 FEETTO THE POINT OF BEGINNING; BEING A 5/8" REBAR SET WITH ALUMINUM CAP NO.1.
THENCE, N 65° 29' 32" W A DISTANCE OF 270.97 FEETTO A 5/8" REBAR SET WITH ALUMINUM CAP NO. 2;
THENCE, N 49° 13' 01" W A DISTANCE OF 436.87 FEETTO A 5/8" REBAR SET WITH ALUMINUM CAP NO. 3;
THENCE, N 45° 16' 47" W A DISTANCE OF 262.58 FEETTO A 5/8" REBAR SET WITH ALUMINUM CAP NO. 4;
THENCE, N 44° 39' 40" E A DISTANCE OF 187.49 FEET TO A 5/8" REBAR SET WITH ALUMINUM CAP NO. 5;
THENCE, N 90° 00' 00" E A DISTANCE OF 64.58 FEET TO A 5/8" REBAR SET WITH ALUMINUM CAP NO. 6;
THENCE, S 09° 33' 44" W A DISTANCE OF 123.09 FEET TO A 5/8" REBAR SET WITH ALUMINUM CAP NO. 7;
THENCE, S 47° 48' 14" E A DISTANCE OF 563.08 FEET TO A 5/8" REBAR SET WITH ALUMINUM CAP NO. 8;
THENCE, N 00° 35' 50" W A DISTANCE OF 327.86 FEET TO A 5/8" REBAR SET WITH ALUMINUM CAP NO. 9;
THENCE, N 49° 03' 36" E A DISTANCE OF 204.59 FEET TO A 5/8" REBAR SET WITH ALUMINUM CAP NO. 10;
THENCE, S 01° 39' 56" E A DISTANCE OF 678.50 FEET TO THE POINT OF BEGINNING.
CONSERVATION EASEMENT CONTAINING 197,667 SQUARE FEET OR 4.54 ACRES MORE OR LESS

CONSERVATION EASEMENT #3
A PARCEL OF LAND TO BE USED FOR CONSERVATION EASEMENT PURPOSES LOCATED ON LANDS NOW OR
FORMERLY OWNED BYTREVA NICHOLS SMITH (TAX PIN 499902865621) AS RECORDED IN BOOK 1362, PAGE 329,
LOCATED IN STEWARTS CREEK TOWNSHIP, SURRY COUNTY, NORTH CAROLINA AND BEING MORE PARTICULARLY
DESCRIBED AS FOLLOWS:
BEGINNING AT A FOUND IRON PIPE 5/8" AT THE SOUTHEAST CORNER OF LANDS NOW OR OWNED BY GLENN J
NICHOLS (BK 4445, PG 1512); SAID IRON HAVING NORTH CAROLINA STATE PLANE COORDINATES OF N:996,528.15,
E:1,497,936.12.
THENCE, N 09° 40' 58" E A DISTANCE OF 402.50 FEET TO A 5/8" REBAR SET WITH ALUMINUM CAP NO. 23;
THENCE, N 37° 29' 49" W A DISTANCE OF 271.04 FEET TO A 5/8" REBAR SET WITH ALUMINUM CAP NO. 22;
THENCE, S 62° 28' 04" E A DISTANCE OF 73.94 FEET TO A 5/8" REBAR SET WITH ALUMINUM CAP NO. 25;
THENCE, S 39° 40' 16" E A DISTANCE OF 195.72 FEET TO A 5/8" REBAR SET WITH ALUMINUM CAP NO. 26;
THENCE, S 29° 03' 25" E A DISTANCE OF 649.17 FEET TO A 5/8" REBAR SET WITH ALUMINUM CAP NO. 27;
THENCE, S 61° 53' 57" E A DISTANCE OF 302.88 FEET TO A 5/8" REBAR SET WITH ALUMINUM CAP NO. 28;
THENCE, S 52° 58' 58" E A DISTANCE OF 315.93 FEET TO A 5/8" REBAR SET WITH ALUMINUM CAP NO. 29;
THENCE, S 36° 57' 34" E A DISTANCE OF 387.01 FEET TO A 5/8" REBAR SET WITH ALUMINUM CAP NO. 30;
THENCE, N 87° 23' 50" W A DISTANCE OF 264.36 FEET TO A 5/8" REBAR SET WITH ALUMINUM CAP NO. 31;
THENCE, N 16° 52' 14" W A DISTANCE OF 92.29 FEET TO A 5/8" REBAR SET WITH ALUMINUM CAP NO. 32;
THENCE, N 51° 42' 47" W A DISTANCE OF 649.40 FEET TO A 5/8" REBAR SET WITH ALUMINUM CAP NO. 33;
THENCE, N 52° 08' 13" W A DISTANCE OF 456.05 FEET TO THE POINT OF BEGINNING.
CONSERVATION EASEMENT CONTAINING 299,176 SQUARE FEET OR 6.87 ACRES MORE OR LESS

All Changes to Template are displayed in RED
RECORDING REQUESTED BY
AND WHEN RECORDED MAIL TO:
SPACE ABOVE THIS LINE FOR RECORDER'S USE
PERMANENT CONSERVATION EASEMENT
THIS CONSERVATION EASEMENT ("Conservation Easement") made this_day of
20_ by and between J. Glenn Nichols and wife, Glenda Nichols, ("Grantor") and
Unique Places to Save ("Grantee").
The designation Grantor and Grantee as used herein shall include said parties, their
heirs, successors and assigns, and shall include singular, plural, masculine, feminine or neuter
as required by context.
RECITALS
WHEREAS, Grantor owns in fee simple certain real property situated, lying and being in
Surry County, North Carolina, more particularly described in Exhibit A attached hereto and
incorporated herein (the "Property");
WHEREAS, Grantee is a charitable, not -for -profit or educational corporation,
association, or trust qualified under § 501 (c)(3) and § 170 (h) of the Internal Revenue Code,

the purposes or powers of which include one or more of the purposes (a) — (d) listed below;
(a) retaining or protecting natural, scenic, or open -space aspects of
real property;
(b) ensuring the availability of real property for recreational, educational, or
open -space use;
(c) protecting natural resources;
(d) maintaining or enhancing air or water quality.
WHEREAS, Grantor and Grantee recognize the conservation, scenic, natural, or
aesthetic value of the property in its natural state, which includes the following natural
communities: wetlands, streams and riparian buffers. The purpose of this Conservation
Easement is to maintain streams, wetlands and riparian resources and other natural values of
approximately 12.42 acres, more or less, and being more particularly described in Exhibit B
attached hereto and incorporated fully herein by reference (the "Conservation Easement
Area"), and prevent the use or development of the Conservation Easement Area for any
purpose or in any manner that would conflict with the maintenance of its natural condition.
WHEREAS, the restoration, enhancement and preservation of the Conservation
Easement Area is a condition of the approval of the Mitigation Banking Instrument (MBI) and
Mitigation Plan for the Hair Sheep Stream Mitigation Bank, Department of the Army (DA)
Action ID Number SAW-2018-00712, entitled "Agreement to Establish the KCI Yadkin 01
Umbrella Mitigation Bank in the Yadkin River Basin within the State of North Carolina",
entered into by and between KCI Technologies, Inc. acting as the Bank Sponsor and the
Wilmington District Corps of Engineers (Corps), in consultation with the North Carolina
Interagency Review Team (IRT). The Hair Sheep Stream Mitigation Site has been approved
by the Corps for use as a mitigation bank to compensate for unavoidable stream and wetland
impacts authorized by DA permits.
WHEREAS, Grantor and Grantee agree that third -party rights of enforcement shall be
held by the U.S. Army Corps of Engineers, Wilmington District ('Third -Party," to include any
successor agencies), and may be exercised through the appropriate enforcement agencies of
the United States, and that these rights are in addition to, and do not limit, the rights of
enforcement under the Department of the Army instrument number SAW-2018-00712
("Mitigation Banking Instrument"), or any permit or certification issued by the Third -Party.
NOW, THEREFORE, for and in consideration of the covenants and representations
contained herein and for other good and valuable consideration, the receipt and legal
sufficiency of which is hereby acknowledged, Grantor hereby unconditionally and irrevocably
grants and conveys unto Grantee, its heirs, successors and assigns, forever and in perpetuity
a Conservation Easement of the nature and character and to the extent hereinafter set forth,
over the Conservation Easement Area described on Exhibit B, together with the right to
preserve and protect the conservation values thereof, as follows:

DURATIONOF EASEMENT
This Conservation Easement shall be perpetual. This Conservation Easement is an easement in
gross, runs with the land and is enforceable by Grantee against Grantor, Grantor's personal
representatives, heirs, successors and assigns, lessees, agents and licensees.
ARTICLE II.
PROHIBITED AND RESTRICTED ACTIVITIES
Any activity on, or use of, the Conservation Easement Area inconsistent with the
purpose of this Conservation Easement is prohibited. The Conservation Easement Area shall be
preserved in its natural condition and restricted from any development that would impair or
interfere with the conservation values of the Conservation Easement Area.
Without limiting the generality of the foregoing, the following activities and uses are
expressly prohibited, restricted or reserved as indicated hereunder:
A. Disturbance of Natural Features. Any change disturbance, alteration or
impairment of the natural features of the Conservation Easement Area or any introduction of
non-native plants and/or animal species is prohibited.
B. Construction. There shall be no constructing or placing of any building, mobile
home, asphalt or concrete pavement, billboard or other advertising display, antenna, utility
pole, tower, conduit, line, pier, landing, dock or any other temporary or permanent structure
or facility on or above the Conservation Easement Area.
C. Industrial, Commercial and Residential Use. Industrial, residential and/or
commercial activities, including any rights of passage for such purposes are prohibited.
D. Agricultural, Grazing and Horticultural Use. Agricultural, grazing, animal
husbandry, and horticultural use of the Conservation Easement Area are prohibited.
E. Vegetation. There shall be no removal, burning, destruction, harming, cutting or
mowing of trees, shrubs, or other vegetation in the Conservation Easement Area except as
provided in the Mitigation Plan. Mowing of invasive and herbaceous vegetation for purposes
of enhancing planted or volunteer trees and shrubs approved in the Mitigation Plan is allowable
once a year for no more than five consecutive years from the date on page 1 of this
Conservation Easement, except where mowing will negatively impact vegetation or disturb
soils. Mowing activities shall only be performed by KCI Technologies Inc. and shall not violate
any part of Item L of Article II.
F. Roads and Trails. There shall be no construction of roads, trails or walkways on the
Conservation Easement Area; nor enlargement or modification to existing roads, trails or

walkways.
G. Signage. No signs shall be permitted on or over the Conservation Easement Area,
except the posting of no trespassing signs, signs identifying the conservation values of the
Conservation Easement Area, signs giving directions or proscribing rules and regulations for the
use of the Conservation Easement Area and/or signs identifying the Grantor as owner of the
Conservation Easement Area.
H. Dumping or Storage. Dumping or storage of soil, trash, ashes, garbage, waste,
abandoned vehicles, appliances, machinery or hazardous substances, or toxic or hazardous
waste, or any placement of underground or aboveground storage tanks or other materials on
the Conservation Easement Area is prohibited.
I. Excavation, Dredging or Mineral Use. There shall be no grading, filling, excavation,
dredging, mining or drilling; no removal of topsoil, sand, gravel, rock, peat, minerals or other
materials, and no change in the topography of the land in any manner on the Conservation
Easement Area, except to restore natural topography or drainage patterns. For purposes of
restoring and enhancing streams and wetlands within the Conservation Easement Area, KCI
Technologies, Inc. is allowed to perform grading, filling, and excavation associated with stream
and wetland restoration and enhancement activities as described in the Mitigation Plan and
authorized by Department of the Army Nationwide Permit 27.
J. Water Quality and Drainage Pattern. There shall be no diking, draining, dredging,
channeling, filling, leveling, pumping, impounding or related activities, or altering or tampering
with water control structures or devices, or disruption or alteration of the restored, enhanced,
or created drainage patterns. In addition, diverting or causing or permitting the diversion of
surface or underground water into, within or out of the easement area by any means, removal
of wetlands, polluting or discharging into waters, springs, seeps, or wetlands, or use of pesticide
or biocides is prohibited.
K. Development Rights. No development rights that have been encumbered or
extinguished by this Conservation Easement shall be transferred pursuant to a transferable
development rights scheme or cluster development arrangement or otherwise.
L. Vehicles. The operation of mechanized vehicles, including, but not limited to,
motorcycles, dirt bikes, all -terrain vehicles, cars and trucks is prohibited other than for
temporary or occasional access by KCI Technologies Inc., the Grantee, its employees and
agents, successors, assigns, and the Corps for purposes of constructing, maintaining and
monitoring the restoration, enhancement and preservation of streams, wetlands and
riparian areas within the Conservation Easement Area.
M. Other Prohibitions. Any other use of, or activity on, the Conservation Easement
Area which is or may become inconsistent with the purposes of this grant, the preservation of
the Conservation Easement Area substantially in its natural condition, or the protection of its

environmental systems, is prohibited.
ARTICLE III
GRANTOR'S RESEVERED RIGHTS
The Grantor expressly reserves for himself, his personal representatives, heirs,
successors or assigns, the right to continue the use of the Conservation Easement Area for all
purposes not inconsistent with this Conservation Easement, including, but not limited to, the
right to quiet enjoyment of the Conservation Easement Area, the rights of ingress and egress,
the right to hunt, fish, and hike on the Conservation Easement Area, the right to sell, transfer,
gift or otherwise convey the Conservation Easement Area, in whole or in part, provided such
sale, transfer or gift conveyance is subject to the terms of, and shall specifically reference, this
Conservation Easement.
Notwithstanding the foregoing Restrictions, Grantor reserves for Grantor, its
successors and assigns, including KCI Technologies, Inc. acting as the Bank Sponsor, the right
to construct and perform activities related to the restoration, enhancement, and preservation
of streams, wetlands and riparian areas within the Conservation Easement Area in accordance
with the approved Hair Sheep Stream Mitigation Plan, and the Mitigation Banking Instrument
described in the Recitals of this Conservation Easement.
ARTICLE IV.
GRANTEE'S RIGHTS
The Grantee or its authorized representatives, successors and assigns, and the Corps,
shall have the right to enter the Property and Conservation Easement Area at all reasonable
times for the purpose of inspecting the Conservation Easement Area to determine if the
Grantor, or his personal representatives, heirs, successors, or assigns, is complying with the
terms, conditions, restrictions, and purposes of this Conservation Easement. The Grantee, KCI
Technologies Inc., and its authorized representatives, successors and assigns, and the Corps
shall also have the right to enter and go upon the Conservation Easement Area for purposes
of making scientific or educational observations and studies, and taking samples. The
easement rights granted herein do not include public access rights.

ARTICLE V
ENFORCEMENTAND REMEDIES
A. To accomplish the purposes of this Easement, Grantee, and the Corps are allowed
to prevent any activity on or use of the Conservation Easement Area that is inconsistent with
the purposes of this Easement and to require the restoration of such areas or features of the
Conservation Easement Area that may be damaged by such activity or use. Upon any breach
of the terms of this Conservation Easement by Grantor that comes to the attention of the
Grantee, the Grantee shall notifythe Grantor in writing of such breach. The Grantor shall have
30 days after receipt of such notice to correct the conditions constituting such breach. If the
breach remains uncured after 30 days, the Grantee may enforce this Conservation Easement
by appropriate legal proceedings including damages, injunctive and other relief.
Notwithstanding the foregoing, the Grantee reserves the immediate right, without notice, to
obtain a temporary restraining order, injunctive or other appropriate relief if the breach of
the terms of this Conservation Easement is or would irreversibly or otherwise materially
impair the benefits to be derived from this Conservation Easement. The Grantor and Grantee
acknowledge that under such circumstances damage to the Grantee would be irreparable and
remedies at law will be inadequate. The rights and remedies of the Grantee provided
hereunder shall be in addition to, and not in lieu of, all other rights and remedies available to
Grantee in connection with this Conservation Easement. The costs of a breach, correction or
restoration, including the Grantee's expenses, court costs, and attorneys' fees, shall be paid
by Grantor, provided Grantor is determined to be responsible for the breach. The Corps shall
have the same rights and privileges as the said Grantee to enforce the terms and conditions
of this Conservation easement.
B. No failure on the part of the Grantee to enforce any covenant or provision hereof
shall discharge or invalidate such covenant or any other covenant, condition, or provision
hereof or affect the right to Grantee to enforce the same in the event of a subsequent breach
or default.
C. Nothing contained in this Conservation Easement shall be construed to entitle
Grantee to bring any action against Grantor for any injury or change in the Conservation
Easement Area resulting from causes beyond the Grantor's control, including, without
limitation, fire, flood, storm, war, acts of God or third parties, except Grantor's lessees or
invitees; or from any prudent action taken in good faith by Grantor under emergency
conditions to prevent, abate, or mitigate significant injury to life, damage to property or harm
to the Conservation Easement Area resulting from such causes.

ARTICLE VI
MISCELLANEOUS
A. Warranty. Grantor warrants, covenants and represents that it owns the Property
in fee simple, and that Grantor either owns all interests in the Propertywhich may be impaired
by the granting of this Conservation Easement or that there are no outstanding mortgages,
tax liens, encumbrances, or other interests in the Property which have not been expressly
subordinated to this Conservation Easement. Grantor further warrants that Grantee shall
have the use of and enjoy all the benefits derived from and arising out of this Conservation
Easement, and that Grantor will warrant and defend title to the Property against the claims of
all persons. _
B. Subsequent Transfers. The Grantor agrees to incorporate the terms of this
Conservation Easement in any deed or other legal instrument that transfers any interest in all
or a portion of the Conservation Easement Area. The Grantor agrees to provide written notice
of such transfer at least sixty (60) days prior to the date of the transfer. The Grantor and
Grantee agree that the terms of this Conservation Easement shall survive any merger of the
fee and easement interests in the Conservation Easement Area or any portion thereof and
shall not be amended, modified or terminated without the prior written consent and approval
of the Corps.
C. Assignment. The parties recognize and agree that the benefits of this Conservation
Easement are in gross and assignable provided, however that the Grantee hereby covenants
and agrees, that in the event it transfers or assigns this Conservation Easement, the
organization receiving the interest will be a qualified holder pursuant to 33 CFR 332.7 (a)(1),
N.C. Gen. Stat. § 121-34 et seq. and § 501 (c)(3) and § 170 (h) of the Internal Revenue Code,
and the Grantee further covenants and agrees that the terms of the transfer or assignment
will be such that the transferee or assignee will be required to continue in perpetuity the
conservation purposes described in this document.
D. Entire Agreement and Severability. The Mitigation Banking Instrument: MBI with
corresponding Mitigation Plan, and this Conservation Easement sets forth the entire
agreement of the parties with respect to the Conservation Easement and supersedes all prior
discussions, negotiations, understandings or agreements relating to the Conservation
Easement. If any provision is found to be void or unenforceable by a court of competent
jurisdiction, the remainder shall continue in full force and effect.
E. Obligations of Ownership. Grantor is responsible for any real estate taxes,
assessments, fees, or charges levied upon the Property. Grantor shall keep the Property free
of any liens or other encumbrances for obligations incurred by Grantor, except those incurred
after the date hereof, which are expressly subject and subordinate to the Conservation
Easement. Grantee shall not be responsible for any costs or liability of any kind related to the
ownership, operation, insurance, upkeep, or maintenance of the Property, except as
expressly provided herein. Nothing herein shall relieve the Grantor of the obligation to

comply with federal, state or local laws, regulations and permits that may apply to the
exercise of the Reserved Rights.
F. Long -Term Management. If livestock operations will be maintained on the
property, Grantor is responsible for all long-term management activities associated with
fencing to ensure livestock do not have access to the Protected Property. These activities
include the maintenance and/or replacement offence structures, as deemed necessary by the
Grantee, to ensure the aquatic resource functions within the boundaries of the Protected
Property are sustained.
G. Extinguishment. In the event that changed conditions render impossible the
continued use of the Conservation Easement Area for the conservation purposes, this
Conservation Easement may only be extinguished, in whole or in part, byjudicial proceeding.
H. Eminent Domain. Whenever all or part of the Conservation Easement Area is taken
in the exercise of eminent domain so as to substantially abrogate the Restrictions imposed by
this Conservation Easement, Grantor and Grantee shall join in appropriate actions at the time
of such taking to recover the full value of the taking, and all incidental and direct damages
due to the taking.
I. Proceeds. This Conservation Easement constitutes a real property interest
immediately vested in Grantee. In the event that all or a portion of the Conservation Easement
Area is sold, exchanged, or involuntarily converted following an extinguishment or the exercise
of eminent domain, Grantee shall be entitled to the fair market value of this Conservation
Easement as determined at the time of the extinguishment or condemnation.
J. Notification. Any notice, request for approval, or other communication required
under this Conservation Easement shall be sent by registered or certified mail, postage
prepaid, to the following addresses (or such address as may be hereafter specified by notice
pursuant to this paragraph):
To Grantor:
J. Glenn Nichols
Glenda Nichols
807 Cadle Ford Road
Mount Airy NC 27030
336-320-2430 (mobile)

To Grantee:
Unique Places to Save (UP2S)
Post Office Box 1183
Chapel Hill, NC 27514-1183
Attn: Jeff Fisher
919-428-2040
To Sponsor:
KCI Technologies, Inc.
4505 Folls of the Neuse Rood, Suite 400
Raleigh, North Carolina 27609
Attn: Gory M. Mrynczo, PE
919-783-9214
To the Corps:
US Army Corps of Engineers
Wilmington District Regulatory Division
69 Darlington Avenue
Wilmington, NC 28403
K. Failure of Grantee. If at any time Grantee is unable or fails to enforce this
Conservation Easement, or if Grantee ceases to be a qualified grantee, and if within a
reasonable period of time after the occurrence of one of these events Grantee fails to make
an assignment pursuant to this Conservation Easement, then the Grantee's interest shall
become vested in another qualified grantee in accordance with an appropriate proceeding in
a court of competent jurisdiction.
L. Amendment. This Conservation Easement maybe amended, but only in a writing
signed by all parties hereto, and provided such amendment does not affect the qualification
of this Conservation Easement or the status of the Grantee under any applicable laws, and is
consistent with the conservation purposes of this grant.
M. Present Condition of the Conservation Easement Area. The wetlands, scenic,
resource, environmental, and other natural characteristics of the Conservation Easement
Area, and its current use and state of improvement, are described in Section 3.0 of the
Mitigation Plan, prepared by Grantor and acknowledged by the Grantor and Grantee to be
complete and accurate as of the date hereof. Both Grantor and Grantee have copies of this
report. It will be used by the parties to assure that any future changes in the use of the
Conservation Easement Area will be consistent with the terms of this Conservation Easement.
However, this report is not intended to preclude the use of other evidence to establish the
present condition of the Conservation Easement Area if there is a controversy over its use.

TO HAVE AND TO HOLD the said rights and easements perpetually unto Grantee for the
aforesaid purposes.
IN TESTIMONY WHEREOF, the Grantor has hereunto set his hand and seal, the day and
year first above written.
J. Glenn Nichols
Glenda Nichols
NORTH CAROLINA
COUNTY OF
I, , a Notary Public in and for the County and State aforesaid,
do hereby certify that , Grantor, personally appeared before me
this day and acknowledged the execution of the foregoing instrument.
IN WITNESS WHEREOF, I have hereunto set my hand and Notary Seal this the day
of , 20_.
Notary Public
My commission expires:

Exhibit A

Exhibit B
The following conservation easement parcels, all as shown on that certain plat entitled "Final Plat Conservation
Easement for Unique Places to Save, Project Name: "Hair Sheep" recorded in Plat Book , Page
Surry County Registry.
CONSERVATION EASEMENT #2
A PARCEL OF LAND TO BE USED FOR CONSERVATION EASEMENT PURPOSES LOCATED ON LANDS NOW OR
FORMERLY OWNED BY GLENN J NICHOLS (TAX PIN 499900764767) AS RECORDED IN BOOK 445, PAGE 1512,
LOCATED IN STEWARTS CREEK TOWNSHIP, SURRY COUNTY, NORTH CAROLINA AND BEING MORE PARTICULARLY
DESCRIBED AS FOLLOWS:
COMMENCING AT FOUND IRON PIPE 5/8" ATTHE SOUTHEAST CORNER OF SAID NICHOLS LANDS; SAID IRON
HAVING NORTH CAROLINA STATE PLANE COORDINATES OF N:996,528.15, E:1,497,936.12. THENCE N 09°40'58" E,
ON THE EAST LINE OF SAID NICHOLS LANDS, A DISTANCE OF 198.24 FEET TO THE POINT OF BEGINNING; BEING A
5/8" REBAR SET WITH ALUMINUM CAP NO.11.
THENCE, S 64° 17' 05" W A DISTANCE OF 113.32 FEETTO A 5/8" REBAR SET WITH ALUMINUM CAP NO. 12;
THENCE, S 84° 21' 25" W A DISTANCE OF 55.55 FEET TO A 5/8" REBAR SET WITH ALUMINUM CAP NO. 13;
THENCE, N 75° 16' 20" W A DISTANCE OF 74.00 FEET TO A 5/8" REBAR SET WITH ALUMINUM CAP NO. 14;
THENCE, N 00° 00' 00" E A DISTANCE OF 75.17 FEET TO A 5/8" REBAR SET WITH ALUMINUM CAP NO. 15;
THENCE, N 84° 26' 47" E A DISTANCE OF 154.29 FEET TO A 5/8" REBAR SET WITH ALUMINUM CAP NO. 16;
THENCE, N 43° 13' 24" E A DISTANCE OF 53.54 FEET TO A 5/8" REBAR SET WITH ALUMINUM CAP NO. 17;
THENCE, N 03° 07' 19" E A DISTANCE OF 112.88 FEET TO A 5/8" REBAR SET WITH ALUMINUM CAP NO. 18;
THENCE, N 39° 11' 59" W A DISTANCE OF 154.02 FEETTO A 5/8" REBAR SET WITH ALUMINUM CAP NO. 19;
THENCE, N 71° 15' 11" W A DISTANCE OF 54.68 FEET TO A 5/8" REBAR SET WITH ALUMINUM CAP NO. 20;
THENCE, N 20° 14' 51" E A DISTANCE OF 89.43 FEETTO A 5/8" REBAR SET WITH ALUMINUM CAP NO. 21;
THENCE, S 62° 28' 04" E A DISTANCE OF 22.67 FEETTO A 5/8" REBAR SET WITH ALUMINUM CAP NO. 22;
THENCE, S 37° 29' 49" E A DISTANCE OF 271.04 FEET TO A 5/8" REBAR SET WITH ALUMINUM CAP NO. 23;
THENCE, S 09° 40' 58" W A DISTANCE OF 204.24 FEETTO THE POINT OF BEGINNING.
CONSERVATION EASEMENT CONTAINING 44,149 SQUARE FEET OR 1.01 ACRES MORE OR LESS

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Unique Places
To Save
March 6, 2020
Tim Morris
KCI Technologies, Inc.
4505 Falls of Neuse Road, Suite 400
Raleigh, NC 27609
Dear Mr. Morris,
This letter confirms that Unique Places to Save ("UP2SI, a 501(c)3 not-for-proflt organization located in the
State of North Carolina, has preliminarily agreed to act as the conservation easement grantee and long-term
steward for the Hair Sheep Creek Mitigation Project ('Sitel located in Surry County, North Carolina. The Site
consists of an approximate 12.42-acre conservation easement area. As the conservation easement grantee
and long-term steward, UP2S has agreed to and shall be responsible for periodic inspection of the Site to
ensure that restrictions required In the conservation easement are enforced and maintained into perpetuity.
Specific responsibilities Include:
A Monitoring of Site is conducted on an annual basis.
Visits to Site are coordinated with landowner when possible.
Annual monitoring reports are sent to the landowner when possible.
11jo Signage and fencing (if applicable) for the easement boundary is maintained.
Violations and potential violations of the conservation easement deed are addressed following
protocols contained In the UP2S Conservation Easement Violations Policy.
UP2S shall receive a stewardship endowment from KCI Technologies, Inc. ("KCI"), the Site sponsor, in the
amount of $42,754.00 to ensure annual Site inspections occur and the terms of the conservation easement are
legally defended into perpetuity. UP2S shall also require an administrative fee of $3,000.00 upon execution of a
Stewardship Agreement between UP2S and KCI.
dotloop verified
k(MWIltey
o3/iV2o 2:-ZPM EDT 03/11/ 02:11 PM EDT K
Jeff Fisher, Board Member
Unique Places To Save
Representative Signature
KCI Technologies, Inc.
Lau-n:c Ei-re,n sdcr�
Printed Name
all I l9-D .20
Date
PQ Box 1183 Chapel Hill, NC 27514 919-428-2040 jp uniqueplacestosave.org

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STEWARDSHIP AGREEMENT
THIS STEWARDSHIP AGREEMENT (hereinafter'Agreement) made as of the Effective Date set
forth below, between KCI Technologies, Inc. ('KCI"), and Unique Places to Save ('UP231, a
501(c)3 North Carolina Non -Profit Corporation.
WITNESSETH
A. KCI is the mitigation bank site sponsor ('Bank Sponsor') of a certain proposed
conservation easement property as shown on the attached map as Exhibit A and the
attached survey as Exhibit B (the 'Property"'). KCI intends to work with the owners of the
Property and UP2S to place a conservation easement over the Property pursuant to the
development of a mitigation bank ("Mitigation Banle) as described in the'KCl Yadkin 01
Umbrella Mitigation Bank: Final Mitigation Plan for Nair Sheep Creek Stream Mitigation
Bank."
B. The legal owners of the Property, J. Glenn Nichols and wife, Glenda Nichols, intend to
grant a conservation easement over the Property to UP2S, which will protect, in
perpetuity, certain mitigation and conservation values on the Property (the "Conservation
Easement).
C. KCl shall afford UP2S the opportunity to review and suggest potential changes to the
draft of the Conservation Easement deed as negotiated by all parties. KCI shall provide a
final, negotiated draft of the Conservation Easement deed to UP2S at least fourteen (14)
calendar days prior to recordation of the Conservation Easement deed in Surry County,
North Carolina.
D. KCI, as Bank Sponsor of the Mitigation Bank, intends to sell compensatory restoration
mitigation credits generated by the Mitigation Bank.
E. The Mitigation Bank is authorized by the United States Army Corps of Engineers
("USACE") in consultation with the North Carolina Interagency Review Team.
F. USACE requires the Conservation Easement to be held by a party other than the Bank
Sponsor of the Mitigation Bank.
G. UP2S agrees to hold the Conservation Easement and serve as the long-term manager
and perpetual steward of the Conservation Easement and KCI agrees to financially
endow UP2S to act as grantee of the Conservation Easement.
NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency is hereby
acknowledged, the parties hereto agree as follows:

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1. AgreementSubject to the
terms and conditions set forth herein, UP2S agrees to accept title to the Conservation
Easement interest in the Property as referenced herein and assumes the obligations of
grantee thereunder, including exclusively serving as the long-term manager and
perpetual steward of the Conservation Easement in accordance with the provisions of
this Agreement and the Conservation Easement deed.
2. Administrative Fee. To help cover administrative costs associated with this Agreement
and as a condition of this Agreement, KCI shall pay to U132S an initial administrative fee
payment ("Initial Payment"} in the amount of $3,000.00 within ten (10) business days of
the Effective Date, as defined in Paragraph 21 of this Agreement.
3. Endowment_ Payment. In addition to the Initial Payment set forth above, KCI shall pay to
UP2S a financial endowment to cover UP2S's costs and expenses for its responsibilities
as the perpetual steward and long-term manager of the Conservation Easement (the
'Endowment Payment'). The total sum of the Endowment Payment shall be Forty Two
Thouiiand Seven Hundred and Fifty Four and 00/100ths Dollars ($42,754.00) to be held
and managed by UP2S in a non -wasting endowment fund for said responsibilities. The
Endowment Payment is due from KCI to UP2S within 30 days of recording the
Conservation Easement deed In Surry County, North Carolina. UP2S shall be responsible
for establishing and managing the non -wasting endowment fund set forth herein.
4. Monitoring Period and Closeout Notice. It is acknowledged by the parties that KCI shall
be responsible for all long-term management activities for approximately seven years
following the completion of the Restoration Activities (the "Monitoring Period'. The
Monitoring Period will end upon KCI's receipt of notice from USACE that the Mitigation
Site has met success criteria (the 'Closeout Notice'). KCI will provide a copy of the
Closeout Notice to UP2S within seven (7) business days after KCI's receipt of the
Closeout Notice.
5. Annual Mon'tgringRgRort. During the Monitoring Period, KCI shall deliver to UP2S an
annual monitoring report on or before December 31" of each calendar year (the 'Annual
Report"). The Annual Report shall include documentation of KCI's annual inspection of
the Property, which inspection will set forth any encroachments or violations of the
Conservation Easement. KCI shall use UP2Save's pre -closeout annual monitoring form
template for annual monitoring report purposes.
6. Enforcement of Conservation Easement. At all times during the Monitoring Period, KCI
shall be responsible for and shall have the right, on behalf of UP2S, to enforce the terms
of the Conservation Easement in close coordination with UP2S. Upon transfer of the
long-term management obligations under Paragraph 7 below, UP2S, as the grantee of
the Conservation Easement, shall assume the responsibilities of the grantee thereunder
and shall have the right to enforce the terms of the Conservation Easement. UP2S shall

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at all times be entitled to act to maintain and verify compliance with the Conservation
Easement.
7. Transfer of Long -Term Management Obligations. Upon full payment of the Initial
Payment, completion of the Monitoring Period, full payment of the amount of the
Endowment Payment and receipt of the Closeout Notice; UP2S shall assume full
responsibility and liability for the long-term management and perpetual stewardship
activities of the Mitigation Bank. Upon UP2S's receipt of the Closeout Notice, KCI shall
have no other obligations for the required long-term management of the Conservation
Easement or under this Agreement.
8. Representations and Warranties of UP2S. U132S represents and warrants that it is a
tax-exempt organization qualified under Section 501 (c) (3) of the Internal Revenue Code
and is qualified to be the grantee of a conservation easement pursuant to N.C. Gen. Stat.
§ 121-34, at sn. and Internal Revenue Code Section 170 (h), and that USACE has
deemed UP2S qualified to hold the Conservation Easement.
9. Indemn4fication of UP2S. KCI agrees to defend, indemnify, protect and hold harmless
UP2S and its members, managers, partners, officers, directors, shareholders and
employees, and each of them and their respective successors and permitted assigns
from and against any and all Claim occurring incident to or resulting in whole or in part
from, the activities or omissions of KCI or any of KCI's members, managers, partners,
officers, directors, shareholders or employees in connection with this Agreement, to the
extent that the Claims are caused by the negligence or willful misconduct of KCI or KCI's
members, managers, partners, officers, directors, shareholders or employees during the
Monitoring Period. This indemnity shall survive the expiration or termination of this
Agreement.
10. Indemnification of KCI. UP2S agrees to defend, indemnify, protect and hold harmless
KCI and Its respective members, managers, partners, officers, directors, shareholders
and employees, and each of them and their respective successors and permitted
assigns from and against any and all Claim occurring incident to or resulting in whole or
in part from, the activities or omissions of UP2S or any of UP2S's members, managers,
partners, officers, directors, shareholders or employees in connection with this
Agreement, to the extent that the Claims are caused by the negligence or willful
misconduct of UP2S or UP2S's members, managers, partners, officers, directors,
shareholders or employees subsequent to the Monitoring Period. This indemnity shall
survive the expiration or termination of this Agreement.
11. Notices. All notices required by this Agreement shall be in writing, shall be given only In
accordance with the provisions of this Section, shall be addressed to the Parties in the
manner stated below, and shall be conclusively deemed properly delivered: (a) upon
receipt when hand delivered during normal business hours; (b) upon the day of delivery if
the notice has been deposited in an authorized receptacle of the United States Postal

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Service as first-class, registered or certified mail, postage prepaid, with a return receipt
requested; (c) one business day after the notice has been deposited with either FedEx or
United Parcel Service to be delivered by overnight delivery; or (d) if sent by email, upon
receipt of an acknowledgement email sent to the sender's email address In which the
party receiving the email notice acknowledges having received that email. An automatic
"read receipt' is not acknowledgement for purposes of this section. The addresses of
the parties to receive notices are as follows:
UP2S: Unique Places to Save
PO Box 1183
Chapel Hill, NC 27514
KCI: KCI Technologies, Inc.
4505 Falls of the Neuse Road, Sutie 400
Raleigh, NC 27609
12. pisnute Resolution. In the event of any dispute, claim, question or disagreement arising
out of or relating to this Agreement, KCI or UP2S may invoke the Dispute Resolution
provisions of this section by notifying the other party in writing of the matter in dispute
and of the party's intention to resolve the dispute under this section. The parties shall
then attempt to resolve the dispute informally for a period of 15 calendar days from the
date of the notice. The period of informal negotiations may be extended 15 calendar
days by written agreement of the parties to the dispute.
13. Mediatoon,. If the parties are unable to resolve the dispute through informal negotiation,
any party may invoke formal dispute resolution through mediation. The parties will
agree to mediate all disputes in good faith and shall agree on a North Carolina Superior
Court Certified Mediator to mediate the dispute. The mediation process shall
commence within 60 days of the selection of a mediator and the costs of mediation
shall be borne equally by both parties. In the event mediation fails to resolve the dispute
between the parties, either party may seek judicial resolution of the dispute in a Court of
the State of North Carolina sitting in Wake County, North Carolina having jurisdiction.
14. Attorneys' Fees. If any party institutes any action or proceeding against another arising
out of this Agreement, each party shall bear its own attorneys' fees and costs, including
any appeal from an action or proceeding.
15. Assignment. vent. This Agreement may not be assigned by UP2S without KCI's prior written
consent, which may be withheld In either party's sole discretion. Any such assignment
will require the assignee to assume and agree to perform and be bound by all the terms,
covenants, conditions and obligations of this Agreement and the obligations of the
Grantee under the Conservation Easements.

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16. Modification: Waiver. No amendment of this Agreement will be effective unless it is in
writing and signed by the parties. No waiver of satisfaction of a condition or failure to
comply with an obligation under this Agreement will be effective unless it is in writing
and signed by the party granting the waiver, and no such waiver will constitute a waiver
of satisfaction of any other condition or failure to comply with any other obligation.
17. Mutual Agreement. This is a mutually negotiated agreement and regardless of which
party was more responsible for its preparation, this Agreement shall be construed
neutrally between the parties.
18. Governing Law. The laws of the State of North Carolina, without giving effect to its
principles of conflicts of law, govern all matters arising out of this Agreement.
19. Counterparts, This Agreement may be signed in counterparts, each of which shall be
deemed an original, but all of which, together, constitute one and the same instrument.
A signed copy of this Agreement delivered by electronic mail in portable document
format (".pdf" format) shall have the same legal effect as delivery of an original signed
copy of this Agreement. This Agreement may also be signed by electronic means.
Subject to applicable law, electronic signatures shall have the same legal validity and
effect as original hand-written signatures.
20. Entire Agreement. Each party acknowledges they are not relying on any statements
made by the other party, other than in this Agreement, regarding the subject matter of
this Agreement. Neither party will have a basis for bringing any claim for fraud in
connection with any such statements.
21. Effective Date, This Agreement will become effective on the date the last party executes
this Agreement.
KCI TECHNOLOGIES, INC.
By: I ��a �.�. ..
U
Title: U+,ce— Pre --s 1 olew%4-
Date:. 311cti?�

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UNIQUE PLACES TO SAVE
a North Carolina Non -Profit corporation
do0r1fiePd
Mo
031/2EDT
By: iPhi Q9JI-MU5Z-UOFY-SWZO
Board Member, Unique
Title: Places to Save
Date: 03/11 /2020

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EXHIBIT A: MAP OF PROPERTY
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0- Mee HAIR SHEEP STREAM MITIGATION HANK ABURRY COUNTY, NC
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EXHIBIT B: SURVEY OF PROPERTY
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Unique Places to Save as Easement Holder for Mitigation Projects
UP2S Mission
Unique Places To Save (UP2S) was founded to move beyond barriers to address unmet needs in the fields of community
and ecological resilience; socially responsible economic ventures; and the advancement integrating nature and technology.
To meet these challenges, we take an entrepreneurial approach uncommon in the nonprofit world, developing creative
solutions that also meet the speed of marketplace demands and opportunities. Our programs include:
• Social Venture Partnerships
• Community Resilience
• Ecological Resilience
• Technology and Nature
In 2019, UP2S formally created "Unique Places Mitigation" ( ), which is a specific effort
under the Ecological Resilience Program noted above. Unique Places Mitigation was created to ensure UP2S had the
resources and support to focus on mitigation projects including funds, staff and expertise as we move forward through our
organizational development efforts.
UP2S receives its support through direct and in -kind contributions from individuals, volunteers, businesses, and partner
organizations. The organization also works to receive grant funding from private foundations, government programs,
businesses and other organizations.
UP2S Board of Directors
Mason Williams —Raleigh, NC
Realtor, Williams Property Group
Benjamin Quinn — Durham, NC
CEO of Farm Blue Ventures
Leigh -Kathryn Bonner - Durham, NC
CEO of Bee Downtown
UP2S Not -for -Profit Status
Clark Harris — Durham, NC
Co-founder of LoLo
Tom Meyer - Durham, NC
Owner of Southern Harvest Catering Co. & Sprout Cafe
Jeffrey Fisher - Durham, NC
CEO of Unique Places, LLC
Adriel Lubarsky - New York, NY
ForeFront Venture Partners
UP2S is a 501(c)3 not -for -profit, see attached determination letter.
Unique Places to Save I PO Box 1183 1 Chapel Hill, NC 27514
www. uniqueplacestosave. org

UP2S as Conservation Easement Grantee
UP2S has the ability to hold conservation easements associated with mitigation banks and other types of conservation
projects. The organization has the capacity, both logistically and financially, to monitor and enforce the provisions of
conservation easements and long-term management plans associated with a mitigation banks. The organization has been
and will continue to be operated in a sustainable way and has been organized with the intent to continue its operations
well into the future. In addition to holding conservation easements, UP2Save engages in a variety of other conservation -
driven projects and activities (see examples at our website www.uniqueplacestosave.org).
Stewardship Endowments
UP2S invests stewardship endowments into non -wasting endowment investment vehicles to (1) cover the costs of annual
monitoring of the conservation easement; (2) legally defend the easement from any challenges and; (3) resolve any
potential violations of the easement. UP2S uses a 3.5% capitalization rate to calculate endowment amount required to
cover annual monitoring costs. We then add other legal defense costs to our annual monitoring costs. UP2S has multiple
considerations when calculating our stewardship endowments:
• Annual Monitoring Costs — These funds will be invested to cover annual monitoring costs using annual interest
earned. As noted above, a 3.5% capitalization rate is used to calculate endowment needed to cover the annual
monitoring costs. Annual monitoring costs include travel time, mileage, pre and post monitoring due diligence,
time at property, handling minor violations, lodging, meals, sign replacement and insurance (see below).
• Cost to Defend Easement — These funds are specifically for use if the easement is challenged or a violation
occurs. Funds include 80 hours of staff time, funds for attorney fees and miscellaneous funds for unforeseen
expenses.
• Stewardship Complexities — These funds are only required if UP2S staff determines the conservation easement
has additional stewardship complexities that would potentially increase the likelihood of violations of the
conservation easement (e.g. abnormal number of adjacent landowners, multiple landowners/conservation
easement deeds for project, reserved rights by landowner, etc).
• Insurance - UP2S will be obtaining conservation easement insurance from Terra Firma insurance group.
Therefore, we add annual insurance premium costs to our endowment calculations.
For more information, please contact:
Michael Scisco
Conservation & Mitigation Specialist
Unique Places to Save / Unique Places Mitigation
505-603-3636
mscisco@uniqu
Unique Places to Save I PO Box 1183 1 Chapel Hill, NC 27514
www. uniqueplacestosave. org

INTERNAL REVENUE SERVICE
P. 0. BOX 2508
CINCINNATI, OH 45201
DEPARTMENT OF THE TREASURY
Date: J U 2 9
2014
Employer Identification Number:
L
46-2076094
DLN:
17053118337004
UNIQUE PLACES TO
SAVE
Contact Person:
C/O THOMAS PRESLEY
ROGER W VANCE ID# 31173
3309 POMEGRANATE
DR
Contact Telephone Number:
RALEIGH, NC 27616
[phone]
Accounting Period Ending:
December 31
Public Charity Status:
170 (b) (1) (A) (vi)
F�9l�equiY - - - -
Yes
Effective Date of Exemption:
December 31 2012
—
Contribution Deductibility:
Yes
Addendum Applies:
No
Dear Applicant:
We are pleased to inform you that upon review of your application for tax
exempt status we have determined that you are exempt from Federal income tax
under section 501(c)(3) of the Internal Revenue Code. Contributions to you are
deductible under section 170 of the Code. You are also qualified to receive
tax deductible bequests, devises, transfers or gifts under section 2055, 2106
or 2522 of the Code. Because this letter could help resolve any questions
regarding your exempt status, you should keep it in your permanent -records.
Organizations exempt under section 501(c)(3) of the Code are further classified
as either public charities or private foundations. We determined that you are
a public charity under the Code section(s) listed in the heading of this
For important information about your responsibilities as a tax-exempt
organization, go to www.irs.gov/charities. Enter 114221-PC1I in the search bar
to view Publication 4221-PC, Compliance Guide for 501(c)(3) Public Charities,
which describes your recordkeeping, reporting, and disclosure requirements.
Sincerely,
I
-/ F_e7��
Director, Exempt Organizations
Letter 947

V
10410
Unique Places
To Save
Year End Mitigation Program Report
December 2019
CURRENT STATUS OF MITIGATION PROGRAM AND ENDOWMENT FUND
The Unique Places to Save("UP2S") Mitigation Program continues to grow. As of the end of
2019, UP2S has a total of 30 mitigation easements across 16 counties in North Carolina. In
2019 alone UP2S added 14 easements to our portfolio. Total acreage of wetlands, forests
and riparian areas protected is approximately 2,150 acres.
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_.. _... Roanoke
_..-__..__ _ _......--. Danville
Johnson City
Fr Greensboro
Knoxville ._ - -, _� _
eville
�. e_ Fayetceoine
Florence
Columbia
Sumter
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Unique Places Charleston
7o Save -
. g nia Beach
Completed Mitigation Easements
# of completed miti9ati on easements
within county lac of December 2019)
MILES ®M�„Qeev
The UP2S conservation easement endowment fund is projected to be $1,356,235 by end of
2019 (see following page). The numbers are broken out as follows:
• Paid - $792,170
o This amount is invested in non -wasting endowment funds and investments.
• Outstanding- $523,511

o A few of our mitigation partners prefer to make annual payments instead of
paying the entire endowment up front. This number reflects payments due
to UP2S over the next 6-7 years.
• Scheduled Payments Made - $40,554
o In 2018 and 2019, our mitigation partners made payments totaling this
amount.
Mitigation Conservation Easement Endowment for
$1,500,000
$1,200,000
$900,000
$600,000
$300,000
$0
Monitoring & Legal Defense
Updated December 2019
(totals are additive)
2017 2018 2019
- Paid to Date Outstanding Amount Scheduled Payments Made
(payments scheduled to be made (total scheduled payments made
prior to project close-out) Of outstanding payments due)

In addition to the work and effort involved with accepting mitigation conservation
easements and building a non -wasting endowment fund, UP2S has also been working on
the following items that are an important part of building a robust, efficient and effective
mitigation program:
• Work with USACE, NCDMS, mitigation partners and landowners to continually refine
the endowment and conservation easement monitoring processes.
• Create a "Mitigation Advisory Board" for UP2S made up of industry experts,
conservation professionals and landowners.
• Provide partners with a year-end report on the UP2S mitigation program (this
report) to ensure transparency and accountability.
• With our mitigation partners, develop guidelines for a monitoring and closeout
schedule for conservation easements that are in the construction and monitoring
phase (see attached). This ensures UP2S and mitigation partners agree on the
process of monitoring conservation easements during the monitoring phase prior to
closeout of projects.
• Developed and received board approval for UP2S Stewardship and Monitoring
Procedures and Guidelines (see attached).
• Developed and received board approval for UP2S Conservation Easement Violation
and Enforcement Policy (see attached).
• Develop Stewardship Agreement template for all mitigation partners.
• Provide input to partners, attorneys, NCDMS and USACE on potential changes to
conservation easement deed templates.
• Develop a UP2S Baseline Documentation Report template specific to mitigation
easements.
• Design a GIS properties database and field collection system for UP2S baseline and
stewardship activities. Fully complete by February of 2020.
• Communicating with mitigation partners, agencies, regulators to better understand
how UP2S can service all entities, find creative solutions, and expand our program to
other service providers and states.
• Ensure our public -facing information is accurate, consumable and advocates for
more preservation of sensitive wetland, forest and riparian areas.

Monitoring & Closeout Schedule for Mitigation
Conservation Easements
The purpose of this document and associated schedule is to ensure there is a consistent
process for monitoring and legally defending mitigation conservation easements
("Easement or Easements") during the construction and monitoring phases of United States
Army Corps of Engineers ("USACE") restoration mitigation projects ("USACE Projects");
monitoring phase of North Carolina Division of Water Resources ("NCDWR")
buffer/nutrient mitigation projects ("Buffer Projects"); and upon recordation of
conservation easement on preservation mitigation projects ("Preservation Project").
Projects regulated by both USACE and NCDWR will follow USACE Projects schedule.
The schedule begins upon recordation of the Easement between Grantor and Unique Places
to Save ("UP2S") and ends upon "close-out" notice approval from the USACE or other
regulatory agency as appropriate.
Also note that it is preferable to have UP2S as the ORIGINAL Grantee of all Easements it
holds. With transferred Easements, UP2S was not involved with the drafting of the
Easement and there is a risk that the Board of UP2S may decide to not accept a transferred
Easement if there are any provisions in the Easement that UP2S does not agree with or will
not accept as Grantee. This is a risk that is easily avoidable by involving UP2S on all projects
that require a conservation easement Grantee as early as in the process as possible.
PRESERVATION PROJECTS
• Easement recorded between Grantor and UP2S.
• Mitigation company partner ("Mitigation Partner") responsible for initial easement
markings and signage, if applicable. UP2S provides signs, unless otherwise noted in
Stewardship Agreement.
• UP2S responsible for legal defense and monitoring the terms of the Easement upon
recordation.
• Mitigation Partner sends UP2S all Grantor contact information if not already sent.
• Mitigation Partner ensures total Easement endowment is paid within 30 days of
Easement recordation.
• UP2S visits property to conduct baseline documentation report ("Baseline") data
collection. The Baseline is developed at year one after Easement recordation. UP2S
develops Baseline for approval by Grantor.
• UP2S conducts ongoing annual Easement monitoring and legal defense activities
into perpetuity.
NCDWR BUFFER PROJECTS
• Easement recorded between Grantor and UP2S.

• UP2S and Mitigation Partner enter into a Stewardship Agreement.
• UP2S responsible for legal defense and monitoring the terms of the Easement upon
recordation.
• Mitigation Partner implements design, conducts plantings and other work
associated with the Buffer Project within 2 years.
• Mitigation Partner monitors site for S years post -construction to ensure design is
intact and functioning at the end of monitoring period.
• Mitigation Partner supplies UP2S copies of official UP2S pre -close-out monitoring
reports on an annual basis.
• Mitigation Partner submits close-out request to NCDWR at appropriate time and
notifies UP2S of submittal.
• NCDWR, Mitigation Partner and UP2S make site visit to property (if possible).
• Mitigation Partner responsible for Easement markings and signage prior to
close-out. UP2S provides signs, unless otherwise noted in Stewardship Agreement.
• Mitigation Partner ensures entire Easement endowment is paid to UP2S prior to
official close-out date.
• NCDWR grants close-out status of the Buffer Project and Mitigation Partner notifies
UP2S of close-out status.
• Mitigation Partner sends UP2S all Grantor contact information if not already sent.
• Mitigation Partner no longer responsible for pre -close-out monitoring activities.
• UP2S visits property to conduct Baseline data collection. The Baseline is developed
at year one after close-out and reflects as -built conditions. UP2S develops Baseline
for approval by Grantor.
• UP2S conducts ongoing annual Easement monitoring and legal defense activities
into perpetuity.
USACE RESTORATION PROJECTS
• Easement recorded between Grantor and UP2S.
• UP2S and Mitigation Partner enter into a Stewardship Agreement.
• UP2S responsible for legal defense and monitoring the terms of the Easement upon
recordation.
• Mitigation Partner implements design, completes construction and other work
associated with the Restoration Project within the first 2 years.
• Mitigation Partner monitors site for 7 years post -construction to ensure design is
intact and functioning at the end of monitoring period.
• Mitigation Partner supplies UP2S copies of official UP2S pre -close-out monitoring
reports on an annual basis.
• Mitigation Partner submits close-out notice to USACE at appropriate time and
notifies UP2S of submittal.
• USACE, Mitigation Partner and UP2S make site visit to property (if possible).
• Mitigation Partner responsible for Easement markings and signage prior to
close-out. UP2S provides signs, unless otherwise noted in Stewardship Agreement.

• Mitigation Partner ensures entire Easement endowment is paid to UP2S prior to
official close-out date.
• USACE grants close-out status of the project and Mitigation Partner notifies UP2S of
close-out status.
• Mitigation Partner sends UP2S all Grantor contact information if not already sent.
• Mitigation Partner no longer responsible for pre -close-out monitoring activities.
• UP2S visits property to conduct Baseline data collection. The Baseline is developed
at year one after close-out and reflects as -built conditions. UP2S develops Baseline
for approval by Grantor.
• UP2S conducts ongoing annual Easement monitoring and legal defense activities
into perpetuity
Unique Places to Save
Stewardship Monitoring Procedures and Guidelines
Unique Places To Save (UP2S) is dedicated to upholding and defending the conservation,
mitigation and restoration values of the conservation easements it has been granted. An
important aspect of achieving this is to conduct our stewardship monitoring practices in a
professional, accurate, and efficient manner. The following procedures and guidelines will
help ensure that UP2S staff has the guidance and expertise to properly monitor UP2S
conservation easements.
UP2S stewardship monitoring procedures and guidelines are separated into three stages:
(1) pre -monitoring due diligence; (2) monitoring of the easement property; and (3)
post -monitoring due diligence. Each stage in the monitoring process is crucial in
employing sound monitoring practices and creating accurate and reliable documentation.
Pre -monitoring Due Diligence:
Pre -monitoring due diligence includes components that prepare the easement monitor for
the impending field work and documentation of their stewardship activities. The following
procedures shall be followed prior to all conservation easement monitoring visits:
1. Contact the landowner to schedule a monitoring visit at least one to two weeks
prior to the scheduled visit either by phone, email, or letter (make an effort to group
monitoring visits to multiple easements in the same general area in one trip).
2. Make an effort to invite the landowner to be involved in the monitoring process.
Usually having the landowner available for questions or discussion of issues before
and after monitoring is fine. It is not necessary that the landowner accompany the
monitor around the property unless the landowner prefers to do so.
3. If unknown, acquire any information needed to access the property (e.g. lock
combinations, gate locations, road/trail locations, contact information for land
managers and neighboring landowners).
4. A few days prior to the monitoring visit, make an effort to contact the landowner to
confirm the monitoring date.

S. Prior to the monitoring date, review the conservation easement deed, baseline
documentation report, most recent monitoring report, and any other pertinent
information (e.g. landowner correspondence, older monitoring reports).
6. Create or replicate an existing monitoring map of the property using aerial imagery
or a topo map as the base layer. Ensure the property boundary is clearly depicted
on the map as well as any building envelopes or other important boundaries or
landscape features (e.g. stream buffers, forest management plots, property points of
access).
7. Enter the property boundary and baseline documentation report (BDR) photopoint
locations (if available) into a GPS unit for field reference.
8. Inform at least two staff members of your schedule and destination(s). Have an
emergency contact phone number available at the office.
9. Monitoring material that is needed on the monitoring visit includes:
o Monitoring map
o GPS unit (with extra batteries)
o Compass
o Camera (with extra batteries)
o Notepad
o Copy of conservation easement deed
10. Prepare for your field work. Bring necessary field equipment to conduct a safe and
effective monitoring visit. Field equipment should include:
Required
o Sunscreen
o Extra water
o Extra clothing
o Extra food
o Extra cash
o Topo map of greater
area
o First Aid/Survival Kit
o Blanket(s)
o Shovel
o Spare tire(s)
o Field jack
o Cell phone
o Flares
o Bolt cutters
o Crowbar
Optional
•
Tent
•
Sleeping bag
•
Firearm(s)
•
Stove
•
Laptop computer
•
Bear spray
Approximate pre -monitoring due diligence completion time: 1-2 hours
Monitoring of the Easement Property:
The field portion of the monitoring effort should be interpreted as (1) an opportunity to
maintain and improve relations with landowners and/or landowner representatives; (2) a

small-scale duplication effort of the baseline documentation report; (3) an opportunity to
enhance, alter, or correct any deficiencies or errors in past monitoring efforts; and (4) a
check on the activities within and conditions of the property under easement.
The following procedures and guidelines will help ensure the efficiency, accuracy, and
safety of a monitoring visit:
1. The monitor should have a clear strategy of how the property will be monitored
prior to the site visit.
2. Meet with the landowner if possible prior to engaging in field work. Ask about land
management activities (past, present or future), activities on adjacent lands, and any
other issues related to the terms of the conservation easement.
3. Invite the landowner to accompany the monitor in the field. This is not necessary,
but it is polite to ask.
4. Enact the monitoring strategy laid out prior to the visit using all tools available (e.g.
GPS, compass, maps, photos).
S. Use GPS to track the monitoring route and take coordinates of photopoint locations.
Use the compass to take azimuth readings at the photopoint locations (direction
photo was taken). All photopoint coordinates must be taken in UTM coordinates,
Zone 13. All azimuth reading must be taken using the 3-digit method (0 to 360°) to
decrease ambiguity as opposed to using quadrants. For example, recording a bearing
of 192' is much clearer than 12' W of S, or S12°W.
6. Walk or drive as much of the property as possible making an effort to visit all access
points and reserved rights areas. Pay special attention to building envelope areas
and other areas that may have more restrictive covenants (e.g. stream corridors,
no -timbering zones, high quality habitat areas).
7. Duplicate the photopoint locations that are depicted in the BDR. If new photopoint
locations are required; develop the new photopoint locations based upon current
landscape conditions and activities. Document these new locations in the
monitoring report and make notes that future monitoring efforts should follow the
new photopoint format. Note: the original photopoints portrayed in the BDR must
always be replicated unless the BDR is amended to not include certain photopoint
locations.
8. TAKE FIELD NOTES! Do not rely on memory to complete the monitoring report.
9. Make an effort to meet with the landowner after the field visit to discuss any minor,
non -violation issues or other observations made while conducting the field visit. Do
not, under any circumstances, discuss potential minor or major violations of
the conservation easement with the landowner. UP2S has specific procedures to
follow when addressing potential violations
Approximate monitoring completion time: 4-16 hours depending upon driving time and
size/complexity of property.
Post -monitoring Due Diligence:
Post -monitoring due diligence primarily consists of developing documentation of the
monitoring visit. This documentation consists of:
1. Filling out the UP2S monitoring report.
2. Creating a monitoring map including the photopoints, access points, monitoring
track, and any other points of interest.

3. Writing a letter to the landowner that summarizes the monitoring visit and also
states that the landowner is in compliance with the terms of the conservation
easement. If the landowner is not in compliance with the terms of the conservation
easement, then UP2S shall follow their Conservation Easement Violations Policy.
4. Properly duplicate the monitoring report and file all copies according to the UP2S
Stewardship Records Management Policy.
S. Mail the signed monitoring report and compliance letter to the landowner and any
representatives listed in the baseline or that have received monitoring reports in the
past.
6. Schedule the next monitoring visit based upon observations in the field and seasonal
access to the property.
Approximate completion time: 1-2 hours
Unique Places to Save
Conservation Easement Violation & Enforcement Policy
It is the policy of Unique Places to Save ("UP2S") to meet the requirements of U.S. Treasury
Regulations §1.170A-14(c) and other regulatory requirements for qualified conservation
easement holders. Specifically, UP2S has a commitment to protect the conservation and
mitigation values ("Conservation Values") of the conservation easements it holds and to
have the resources and expertise to enforce the restrictions of the conservation easements.
UP2S promptly addresses any potential violations to minimize negative impacts to the
Conservation Values of the property and to uphold the terms of the conservation easement.
If a potential violation occurs, UP2S prefers to work with the landowner to correct the
potential violation. However, UP2S's primary obligation is to uphold the terms of the
conservation easement and protect the Conservation Values of the property.
Purpose of Conservation Easement Violation & Enforcement Policy
• To serve as a guide for UP2S staff and Board in resolving violations and
potential violations of conservation easements held by UP2S.
• To carry out the purposes of the conservation easement and the intent of the
parties by protecting the Conservation Values and preserving the public
benefits (if any) provided by the conservation easement.
• To maintain UP2S's legal authority to enforce the restrictions of the
conservation easement.
• To maintain and build upon the public's confidence in UP2S to effectively
defend and protect conservation easements.
• To comply with written conditions related to conservation easement
enforcement as required by funding and regulatory agencies.

Violation Prevention Measures
• Develop well -drafted conservation easement deeds.
• Ensure that current and specifically next -generation landowners are well
educated of conservation easement deed terms and restrictions.
• Continually maintain and improve landowner relations.
• Involve landowners in site visits and general stewardship activities.
• Monitor properties at least once per year.
• Send monitoring documentation and compliance letters to landowners.
• Act as a technical resource for landowners to the extent that UP2S has the
resources, capacity, and expertise.
• Work to ensure that UP2S is informed when property ownership changes.
• Provide information and resources for new landowners to familiarize them
with the terms and conditions of the conservation easement.
Violation & Enforcement Procedures
Most violations and potential violations of the terms of the conservation easement deed are
discovered during monitoring visits by staff, Board members or volunteers of the
organization. It is imperative that the monitor not discuss any potential violations with the
landowner while conducting the monitoring visit. The procedures outlined below should
be followed at all times whether the potential violation is perceived by the monitor as
major or minor in scope.
All conversations and correspondences with the landowner should be recorded in writing
and files should be maintained that include documentation of any and all actions involved
in addressing the violation.
1. The monitor must make an effort to document the potential violation while in the
field using all or some of the following methods:
o Take photographs of all aspects of the potential violation.
o Record a GPS location of the potential violation. If GPS is not available, make
certain that at least one of your photos includes a permanent landmark that
can be easily identified in the field. Also, note location on the annual
monitoring map.
o Write a summary on the monitoring report form that includes a detailed
description of the potential violation as soon after the site visit as possible.
Sign and date the monitoring report.
2. Report the potential violation to the appropriate senior staff or Board Member. Do
not by any means speak with the landowner prior to discussing the potential
violation with senior staff or Board Member.

3. Review the conservation easement deed to:
o Determine the conservation easement terms and restrictions;
o Determine specified enforcement procedures;
o Determine what parties need to be notified of the potential violation; and
o Ensure that UP2S's response complies with the easement terms.
4. Review the baseline documentation report and previous monitoring reports,
focusing specifically on the most recent monitoring report. Review any additional
relevant material.
S. Determine if the violation is a procedural violation that does not specifically affect
the conservation values of the property. Examples of procedural violations include
missing a notification deadline or not seeking approval for actions in a timely
manner.
6. If the violation is deemed to be a procedural violation, UP2S staff will address the
procedural violation by contacting the landowner to hopefully clarify and resolve
the issue. All correspondence shall be documented.
7. If the potential violation is not considered to be a procedural violation, UP2S will
pursue one or more of the following options to determine the nature and extent of
the potential violation:
o Conduct a site visit.
o Consultation with the landowner to discuss the possible violation and
document his/her input and point of view.
o Consultation with third parties such as resource specialists, attorneys,
regulators, and funding entities.
o Discussion among staff to determine the appropriate action after all
information has been gathered.
8. If after staff discussion and evaluation of the information presented it is deemed that
a violation has occurred, UP2S will refer to the conservation easement enforcement
provisions to guide development of an enforcement strategy. Mitigation and
enforcement alternatives will be discussed with Board of Directors, appropriate staff
members, and outside council as appropriate.
9. UP2S staff and Board of Directors with advice from legal counsel will decide the best
course of action. Possible enforcement solutions include:
a. A voluntary, negotiated resolution to a violation. UP2S gives the violator
a reasonable time frame to cure the violation or restore the portion of the
property to its prior condition with approval by UP2S.

b. Use mediation when the violator and UP2S cannot agree on reparation
but are willing to work with a third party.
c. If the violator fails to cure the violation within the timeframe specified by
UP2S of receipt of the violation notice, or fails to begin curing such violation,
or fails to continue diligently to cure such violation until finally cured; UP2S
may bring an action at law or in equity in a court of competent jurisdiction to
enforce the terms of the conservation easement, to enjoin the violation, ex
parte as necessary, by temporary or permanent injunction, and to require the
restoration of the property to the condition that existed prior to any such
injury.
d. Litigation is the last choice but may be necessary to resolve the violation.
In some cases, state law may require the courts be involved when
conservation easement violations occur.

13.4 Credit Release Schedule
Mitigation Plan—112312020 Hair Sheep Stream Mitigation Bank

Mitigation Plan—112312020 Hair Sheep Stream Mitigation Bank

All credit releases will be based on the total credit generated as reported in the final design plans unless
otherwise documented and provided to the Interagency Review Team following construction. Under no
circumstances shall any mitigation project be debited until the necessary DA authorization has been
received for its construction or the District Engineer (DE) has otherwise provided written approval for the
project in the case where no DA authorization is required for construction of the mitigation project. The
DE, in consultation with the Interagency Review Team (IRT), will determine if performance standards have
been satisfied sufficiently to meet the requirements of the release schedules below. In cases where some
performance standards have not been met, credits may still be released depending on the specifics of the
case. Monitoring may be required to restart or be extended, depending on the extent to which the site
fails to meet the specified performance standard. The release of project credits will be subject to the
criteria described as follows:
Stream Credit Release Schedule
Credit
Monitoring
Credit Release Activity
Interim
Total
Milestone
Year
Release
Released
1
0
Site Establishment
15%
15%
2
0
Completion of all improvements per mitigation plan
15%
30%
3
1
First year monitoring report demonstrates performance
10%
40%
standards are being met
4
2
Second year monitoring report demonstrates performance
10%
50%
standards are being met
5
3
Third year monitoring report demonstrates performance
10%
60%
standards are being met
6
4
Fourth year monitoring report demonstrates performance
5%
65% (75%*)
standards are being met
7
5
Fifth year monitoring report demonstrates performance
10%
75% (85%*)
standards are being met
8
6
Sixth year monitoring report demonstrates performance
5%
80% (90%*)
standards are being met
9
7
Seventh year monitoring report demonstrates performance
10%
90% (100%*)
standards are being met, and project has received close-out
approval from IRT
*See Subsequent Credit Releases description below
Initial Allocation of Released Credits
The initial allocation of released credits, as specified in the mitigation plan, can be released without prior
written approval of the DE upon satisfactory completion of the following activities:
a. Approval of the final Mitigation Plan
b. Recordation of the preservation mechanism, as well as a title opinion acceptable to the USACE
covering the property
c. Completion of project construction (the initial physical and biological improvements to the
mitigation site) pursuant to the mitigation plan; construction means that a mitigation site has
been constructed in its entirety, to include planting, and an as -built report has been produced.
As -built reports must be sealed by an engineer prior to project closeout, if appropriate but not
prior to the initial allocation of released credits.
d. Receipt of necessary DA permit authorization or written DA approval for projects where DA permit
issuance is not required.
Mitigation Plan—112312020 Hair Sheep Stream Mitigation Bank

Subsequent Credit Releases
All subsequent credit releases must be approved by the DE, in consultation with the IRT, based on a
determination that required performance standards have been achieved. For stream project with a 7-year
monitoring period, a reserve of 10% of a site's total stream credits shall be released after four bankfull
events have occurred, in separate years, provided the channel is stable and all other performance
standards are met. In the event that less than four bankfull events occur during the monitoring period,
release of these reserve credits shall be at the discretion of the IRT. As projects approach milestones
associated with credit release, KCI will submit a request for credit release to the DE along with
documentation substantiating achievement of criteria required for release to occur. This documentation
will be included with the annual monitoring report.
Mitigation Plan—112312020 Hair Sheep Stream Mitigation Bank

13.5 Financial Assurance
Mitigation Plan—112312020 Hair Sheep Stream Mitigation Bank

Mitigation Plan—112312020 Hair Sheep Stream Mitigation Bank

Construction Financial Assurances
Prior to the first Credit Release, the Bank Sponsor shall furnish to USACE a Construction Financial
Assurance (CFA) in the amount of 100% of the reasonable estimate to establish, restore, or enhance
Waters of the U.S. and/or Waters of the State in accordance with the Mitigation Plan. The Construction
Financial Assurance shall be in the form of casualty insurance. The Bank Sponsor shall ensure the
Construction Financial Assurance shall remain in effect in the full amount required bythis MBI throughout
the performance of construction and planting to establish, restore, or enhance Waters of the U.S. and/or
Waters of the State on the Bank Property in accordance with the Mitigation Plan. The fully funded amount
will be $491,000. This value is based on the detailed construction budget breakdown derived for the
project.
a. Construction Financial Assurance Contingency Plan
1. Should the USACE determine that a claim on the Construction Financial Assurance has
become necessary, the insurance carrier shall allocate funds to a standby trust fund
for distribution to a qualified contractor.
2. In the event of a claim, it would be the responsibility of the entity receiving the funds
to develop a proposal for accomplishing the mitigation project goals. USACE in
coordination with the IRT will have the ability to review and approve the plan prior to
implementation.
3. The Construction Financial Assurance shall be phased out by USACE, after
coordination with the IRT, only after the Bank Sponsor completes the construction
and planting activities in accordance with the Mitigation Plan, as demonstrated by:
• Bank Sponsor's submission of As -Built drawings in accordance with Section
II.E.iii. and Section 11.1;
• an on -site inspection by the IRT; and
• written approval from the IRT.
Mitigation Plan—112312020 Hair Sheep Stream Mitigation Bank

Monitoring & Adaptive Management Financial Assurances
Before the first Credit Release in the Monitoring and Adaptive Management Period, the Bank Sponsor
shall furnish to USACE Monitoring & Adaptive Management Financial Assurances (AMFA) in the amount
of $871,000. This will cover construction and the first two years of the monitoring period.
The Monitoring & Adaptive Management Financial Assurances shall be in the form of casualty insurance.
The Bank Sponsor shall ensure the Monitoring & Adaptive Management Financial Assurances shall remain
available in the full amount required by this MBI until the end of the Adaptive Management Period. The
fully funded amount will be $181,000 based upon information furnished in Table 1 below. This will include
Year 3 through Year 7 of the Monitoring and Adaptive Management timeline.
a. Adaptive Management Financial Assurance Contingency Plan
1. Should USACE determine a claim on the AMFA is necessary, the insurance carrier shall
allocate funds to a standby trust fund for distribution to a qualified contractor. It
would be the responsibility of the entity receiving the funds to develop a proposal for
accomplishing the mitigation project goals. USACE in coordination with the IRT would
have the ability to review and approve the plan prior to implementation.
2. If any portion of the AMFA is drawn upon pursuant to this Section then the Bank
Sponsor shall replenish the AMFA to the amount specified in Table 1 within 90
calendar days after written notice from USACE.
3. The insurance that constitutes the AMFA will be renewed every two years over the
course of the monitoring period. At each renewal the amount covered by this
insurance will reflect the remaining budget left for monitoring and adaptive
management as specified in Table 1. The final AMFA shall be released after all
Performance Standards have been met and all adaptive management, if any, has been
completed, as evidenced by:
• timely submission of all required annual reports:
• the third anniversary of the completion of all Remedial Action, if any, in
accordance with the Adaptive Management Plan(s);
• an on -site inspection by the IRT; and
• written approval from the IRT.
Lone -Term Management Fund
The Bank Sponsor will fully fund the Long -Term Management Fund at the time of closing of the
Conservation Easement. The Long -Term Management Fund amount has been determined by the
Conservation Easement Holder to be $30,375 and has been contractually agreed upon by the Bank
Sponsor. This budget will fully provide for the tasks and responsibilities of long-term stewardship for the
site as described in the Mitigation Plan.
Mitigation Plan — 112312020 Hair Sheep Stream Mitigation Bank

Table 1. Cost Summary for Hair Sheep Stream Restoration Site
A. Land Component
Cost
Financial Assurance
Easement Cost
$186,000
NA
Settlement Costs
$3,000
NA
Land Survey
$10,000
NA
Legal Costs
$12,500
NA
Sub Total Land
$211,500
B. Assessment Component
Cost
Restoration Assessment
$19,000
NA
Reference Characterization
$3000
NA
Prospectus
$10,000
NA
NEPA Clearance
$7,500
NA
Archeology
$5,000
NA
Sub Total Assessment
$44,500
C. Design Component
Cost
Topo Survey — Base Mapping
$9,000
NA
Design Criteria — Mitigation Plan
$26,000
NA
Final Design Plans
$29,000
NA
M BI
$30,000
NA
Supplemental Design
$9,000
NA
Permitting
$12,000
NA
Sub Total Design
$115,000
Mitigation Plan—112312020 Hair Sheep Stream Mitigation Bank

D. Construction Cost
Land Improvements (fence, wells, etc.)
107,000
CFA-100%
Grading
342,000
CFA-100%
Sediment and Erosion Control
22,000
CFA-100%
Planting
10,000
CFA-100%
Construction Survey and As -Built Plans
10,000
CFA-100%
Sub Total Construction
$491,000
E. Monitoring Cost*
Baseline/As-Built Report
$24,000
Year 1-2 AMFA ($134,000)
Year 1 Report
$13,000
Year 2 Report
$14,500
Year 3 Report
$14,500
Year 3-4 AMFA ($82,500)
Year 4 Report
$8,500
Year 5 Report
$16,000
Year 5-6 AMFA ($59,500)
Year 6 Report
$10,500
Year 7 Report
$19,000
Year 7-8 AMFA ($33,000)
Closeout Report
$14,000
Subtotal Monitoring
$134,000
F. Maintenance*
Year 1
$15,000
Year 1-2 AMFA ($56,000)
Year 2
$10,000
Year 3
$10,000
Year 3-4 AMFA ($31,000)
Year 4
$5,000
Year 5
$5,000
Year 5-6 AMFA ($16,000)
Year 6
$5,000
Year 7
$3,000
Year 7-8 AMFA ($6,000)
Closeout
$3,000
Subtotal Maintenance
$56,000
Total Project
$1,052,000
*Monitoring and Maintenance Tasks combined create the total AMFA value.
Draft Insurance Binder is included below
Mitigation Plan—112312020 Hair Sheep Stream Mitigation Bank

4
CONSERVATION
U N I T E D
Cover Letter to Draft Binder
Compensatory Mitigation
Insurance Policy
Hair Sheep Stream Mitigation Bank
Wilmington District of the Army
Corps of Engineers
74
Presented by:
Chris Baker,
Insurance United dba Conservation United
P.O. Box 759
Higley, AZ 85236
Phone: [phone]
Fax: [phone]
24-Hour Service: [phone]
Email: [e-mail]
Insurance United License: #1000428224
J

April 14, 2020
Mr. Steven Kichefski
Project Manager
U.S. Army Corps of Engineers, Wilmington District, Asheville Field Office
151 Patton Avenue, Suite 208
Asheville, NC 28801
828-271-7980 Ext. 4234
Dear Mr. Kichefski,
Thank you for reviewing the casualty insurance policy satisfying financial assurance
requirements for the Construction Period and Monitoring Years 1 and 2 on the Hair
Sheep Stream Mitigation Bank under the KCI Yadkin 01 Umbrella Mitigation Banking
Instrument. The draft binder materially represents the policy jacket as it will appear
upon binding and includes the declaration pages, policy body, and all endorsements.
Please note that the attached Draft Binder reflects changes recommended by Todd
Tugwell and Corps Counsel, which are addressed in the "Wilmington District
Amendatory Endorsement" on page 25/25. While these changes were communicated
with reference to a different pending mitigation bank in the Wilmington District, I
surmise that they will apply broadly.
The Policy will be bound for three years, and can be extended through modification
and in consideration of additional premium . The specific policy period dates will be
adjusted to reflect the date of final approval and binding, at which point signatures and
a policy number will also be added and the watermarks designating ""specimen" or
"draft" will be removed.
Please do not hesitate to call me at [phone] with any questions.
Best regards,
6&--
Chris Baker
Principal, Insurance United, Inc., dba Conservation United

SCHEDULE OF FORMS AND ENDORSEMENTS
Policy Number: To be Assigned at Binding
Named Insured: KCI Technologies, Inc.
FORMS ATTACHED TO AND MADE A PART OF THIS POLICY AT INCEPTION:
FORM NUMBER FORM TITLE
ENV FORM 02 14 Schedule of Forms and Endorsements
E001 J (03/17) Nautilus Policy Jacket
ENV DIR CLAIMS 06 16 Policyholder Notice — Claim Reporting Information
CMI DEC 05 19 Compensatory Mitigation Insurance Declarations
CMI 6602 02 19
S020 (04-05)
IL 12 02 01 16
ENV 2225 01 15 BSUM
CMI 6601 12 16
CMI 6602 02 19
CMI 6602 02 19
Form #: TBA
Compensatory Mitigation Insurance Insuring Agreement
Service of Suit
Office of Foreign Asset Control Exclusion
Exclusion of Certified Acts of Terrorism
Covered Location Endorsement
Indemnification Endorsement, KCI Technologies, Inc.
Indemnification Endorsement, KCI Holdings, Inc.
Wilmington District Amendatory Endorsement
ENV FORM 02 14 Includes copyrighted material of Insurance Services Office, Inc., used with permission. Page 1 of 1

Nautilus Insurance Company-,
An Arizona Corporation V a W. R. B,.*I y C..paxy
COMMERCIAL LINES POLICY JACKET
THIS POLICY IS NOT OBTAINED PRIMARILY FOR PERSONAL, FAMILY OR HOUSEHOLD
PURPOSES.
THIS POLICY CONSISTS OF:
- Declarations;
- Common Policy Conditions; and
- One or more Coverage Parts. A Coverage Part consists of:
- One or more Coverage Forms; and
- Applicable Forms and Endorsements.
In Witness Whereof, we have caused this policy to be executed and attested, and, if required by state law, this policy shall
not be valid unless countersigned by our authorized representative.
Secretary President and CEO
Administrative Office:
7233 East Butherus Drive, Scottsdale, Arizona 85260
Service Office:
101 Hudson Street, Suite 2550, Jersey City, NJ 07302 Telephone [phone] Facsimile [phone]
E001 J 03 17 Page 1 of 1

Oft Berkley
WE=. Environmental
a Berkley CUMPNny
Claim
Services
By knowing your industry
and speaking your language,
our claim professionals can
focus on meeting your
unique business needs and
offer you the superior claim
service you deserve through
responsible claim
management and aggressive
mitigation.
We are confident our
dedicated teams of claim
professionals will add value
to your organization and help
you succeed in
accomplishing your risk
management objectives.
Reporting a Claim
It is vitally important that you contact us as soon as possible when an accident happens.
Under all circumstances, you must follow the claim reporting requirements of your policy
including, but not limited to, providing us written notice of the claim.
Automopiie L,laims
Submit online through First Notice of
Loss Portal:
http://berklevenvi ron mental.com/reguest-
access/
**Registration Required
Phone: [phone]
Fax: [phone]
Email:
Environmental.auto.claims(a�berkleyenviro
nmental.com
Mailing Address:
101 Hudson Street
25`h Floor, Suite 2550
Jersey City, NJ 07302
Workers Lompensation
Claims
Submit online through First Notice of Loss
Portal:
http://berklevenvi ron mental.conVreguest-access/
**Registration Required
Fax: [phone]
Email:
Environmental.wc.claims(a.berkleyenvironmenta
I. com
Mailing Address:
PO Box 141299
Irving, TX 75014-1233
Street Address:
600 E. Las Colinas Blvd,
Suite 1400
Irving, TX 75039
**Please contact Lisa M. Schorfheide I Claims Services Director at 469.802.4289 or
Ischorfheide(aDberkleyenvironmental.com with FNOL registration questions or assistance.
General Liability,
Environmental Liability and
Professional Liability Claims
Submit online through the Berkley
Environmental Claim Document Upload
Center:
http://berklevenvironmental.con/environm
ental/claims/
Phone: [phone]
Fax: [phone]
Email:
Environmental. Iiability.claims(a.berkleyenv
ironmental.com
Mailing Address:
101 Hudson Street
25`h Floor, Suite 2550
Jersey City, NJ 07302
Berkley Environmental (a Berkley Company)
Innovative Solut;
www.berklevenvironmental.com
Berkley Environmental Support
Team (BEST)
We understand environmental spills and
releases can be extremely stressful events.
That's why we're proud to offer you a free fully
staffed 24 hour — 7 day a week emergency
response call center staffed with experienced
professionals with a national network or
emergency response providers able to file
agency spill notifications.
Call [phone]* to report your
environmental spill or release.
*Available In Case of Emergencies,
Weekends or Holidays
THE MATERIAL IN THIS PUBLICATION IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND IS NOT INTENDED TO BE A REPRESENTATION OF COVERAGE THAT MAY EXIST IN ANY
PARTICULAR SITUATION UNDER A POLICY ISSUED BY A MEMBER COMPANY OF BERKLEY SPECIALTY UNDERWRITING MANAGERS OR ITS AFFILIATES. ALL CONDITIONS OF COVERAGE,
TERMS AND LIMITATIONS ARE DEFINED AND PROVIDED FOR IN THE POLICY. PROGRAMS OR PRODUCTS MAY NOT BE AVAILABLE IN ALL STATES AND POLICY FEATURES MAY VARY BY
STATE
ENV DI CLAIMS 11 18 Page 1 of 1

NAUTILUS INSURANCE COMPANY
Scottsdale, AZ
COMPENSATORY MITIGATION INSURANCE DECLARATIONS
Policy Number: Assigned at Binding
INSURED'S NAME AND ADDRESS:
Sponsor Name: KCI Technologies, Inc
Sponsor Address: 936 Ridgebrook Rd.
City, State, Zip: Sparta, NC 21152
Renewal of: N/A
PRODUCER'S NAME AND ADDRESS:
American Risk Management Resources Network, LLC
7780 Elmwood Ave., Suite 130
Middleton, WI 53562-3135
POLICY PERIOD: TBD to TBD at 12:01 a.m. Standard Time at your mailing address shown above.
IN RETURN FOR THE PAYMENT OF PREMIUM, AND SUBJECT TO ALL THE TERMS OF THIS POLICY, WE AGREE
WITH YOU TO PROVIDE THE INSURANCE AS STATED IN THIS POLICY.
FORM OF BUSINESS:
Corporation
COMPENSATORY MITIGATION PROJECT(S):
Hair Sheep Stream Mitigation Bank, in Surry County, NC
MITIGATION INSTRUMENT:
KCI Yadkin 01 UMBI
CABLE STATE REGULATION:
N/A
Limits of Insurance:
Ed
■
Effective Coverage Period
Per Claim:
Total All Claims
Const: XX/XX/2020 - XX/XX/2021
$491,000
$491,000
MY 1: XX/XX/2021 - XX/XX/2022
$190,000
$190,000
MY 2: XX/XX/2022 - XX/XX/2023
$190,000
$190,000
Policy Aggregate Limit: $871,000
Upon policy renewal the limit of insurance shall expire and will be replaced by the limits in the subsequent
Effective Coverage Period.
CMI DEC 05 19
Page 1 of 2

AT THE END OF EACH EFFECTIVE COVERAGE PERIOD, THE LIMIT OF INSURANCE SHALL EXPIRE AND WILL
BE REPLACED BY THE LIMITS IN THE SUBSEQUENT EFFECTIVE COVERAGE PERIOD UNTIL POLICY
EXPIRATION.
NOTICE TO THE INSURED:
THe INSURANCE COMPANY WITH WHICH THIS COVERAGE HAS BEEN PLACED IS NOT
LICENSED BY THE STATE OF NORTH CAROLINA AND IS NOT SUBJECT TO ITS
SUPERVISION. IN THE EVENT OF THE INSOLVENCY OF THE INSURANCE COMPANY,
LOSSES UNDER THIS POLICY WILL NOT BE PAID BY ANY STATE INSURANCE
GUARANTY OR SOLVENCY FUND
PREMIUM:
COMPENSATORY MITIGATION INSURANCE: $13,065
TERRORISM INSURANCE ACT: Rejected
TOTAL POLICY PREMIUM: $13,065
MINIMUM EARNED PREMIUM: 100 %
FORMS AND ENDORSEMENTS (Other than applicable forms and endorsements shown elsewhere in the policy):
Forms and Endorsements applying to this policy and made part of this policy at the time of issue:
SEE SCHEDULE OF FORMS AND ENDORSEMENTS
NAME AND ADDRESS OF ADMINISTRATIVE OFFICE:
Berkley Environmental (A Berkley Company)
Two Ravinia Drive, Suite 1100, Atlanta, GA 30346
Phone No.: [phone], See CLAIMS NOTICE for claims contact information.
THIS POLICY DECLARATIONS TOGETHER WITH THE COMMON POLICY CONDITIONS, COVERAGE PART
COVERAGE FORM(S) AND FORMS AND ENDORSEMENTS, IF ANY, ISSUED TO FORM A PART THEREOF,
COMPLETE THE ABOVE NUMBERED POLICY.
CMI DEC 05 19 Page 2 of 2

COMPENSATORY MITIGATION INSURANCE
THIS FORM PROVIDES CLAIMS MADE AND REPORTED COVERAGE. PLEASE READ THE ENTIRE FORM
CAREFULLY.
Various provisions in this policy restrict coverage. Read the entire policy carefully to determine rights, duties, and what is
and is not covered.
Throughout this policy the words "you" and "your" refer to the Named Insured shown in the Declarations, and any other
person or organization qualifying as an Insured under this policy. The words "we", "us", and "our" refer to the Company
providing this insurance. "You" and "your" do not refer to the Authorizing Agency. Other than headings, words and
phrases that appear in bold have special meaning. Refer to SECTION II - DEFINITIONS.
This policy provides Claims Made and Reported Coverage and has Claim reporting requirements. Coverage provided
herein only applies to a Claim first made against the Named Insured during the Policy Period, and reported to us in
writing during the Effective Coverage Period in which the Claim is made. This policy does not include a duty to defend
or to pay defense costs. Notice of a Default or Deficiency Notice is not a Claim and does not trigger coverage under the
policy.
The application, filed and approved Mitigation Plan, Mitigation Instrument, supplemental materials, and information
submitted therewith, are the basis of this policy and are incorporated into and constitute a part of this policy. Any
materials and information received in application for the policy will be maintained on file with the Company and shall be
deemed to be attached to the policy as if physically attached. As a condition precedent to coverage, it is agreed by all
Insureds that the statements made in the application and supplemental materials are representations made on behalf of
all Insureds, that they are material, and that this policy is issued by the Company in reliance upon the truth of such
representations.
In consideration of the payment of the premium and the undertaking of the Insured(s) to pay the Indemnification
Obligation in the Indemnification Endorsement attached to this policy, and subject to the Limits of Insurance set out in
SECTION IV — LIMITS OF INSURANCE and the Declarations, and the exclusions, conditions, and other terms of this
policy, the Company agrees with the Insured(s) as follows:
SECTION I — INSURING AGREEMENT
To pay on behalf of the Named Insured the amount of Financial Assurances for which the Named Insured becomes
legally obligated to pay as a result of a Claim first made against it during the Policy Period, by reason of a Default under
a Mitigation Instrument, to which this insurance applies, provided that, as a condition precedent to coverage, the Claim
is reported, in writing, to the Company by the Named Insured or by the Authorizing Agency on the Named Insured's
behalf during the Effective Coverage Period in which the Claim is first made against the Named Insured.
We will have the right to adjust, pay or settle any Claim seeking Financial Assurances as described in SECTION V —
REPORTING, ADJUSTMENT & SETTLEMENT; and
We may at our discretion investigate any Default and settle any Claim that may result. But:
1. The amount we will pay for Financial Assurances under this policy is limited as described in SECTION IV — LIMITS
OF INSURANCE; and
2. Our obligation to adjust, pay or settle any Claim under an Effective Coverage Period ends when we have paid the
limit of insurance applicable to that Effective Coverage Period, in the payment or settlement of Financial
Assurances.
SECTION II - DEFINITIONS
1. Adaptive Management Plan means the development of a management strategy that results in a written plan as
defined in 33 CFR 332.4(c)(12) or Applicable State Regulation scheduled in the Declarations to the policy, that
anticipates likely challenges associated with Compensatory Mitigation Projects and provides for the implementation
of actions to address those challenges, as well as unforeseen changes to those projects.
2. Authorizing Agency means the Department of the Army, the U.S. Army Corps of Engineers, the District Engineer, or
other person, entity or agency designated by the Department of the Army, that retains the sole and final authority
under 33 CFR 332 or any state agency that retains sole and final authority under Applicable State Regulations
CMI 6600 05 19 Page 1 of 7

scheduled in the Declarations to the policy, to negotiate, determine, approve and enforce the terms of the Mitigation
Instrument, and any other documents established thereunder.
3. Claim means a written demand received by the Named Insured from the Authorizing Agency, or from the
Authorizing Agency on the Named Insured's behalf seeking payment of Financial Assurances as a result of a
Default under the Mitigation Instrument.
4. Compensatory Mitigation as defined in 33 CFR 332.2 or Applicable State Regulation scheduled in the Declarations
to the policy, means the restoration (re-establishment or rehabilitation), establishment (creation), enhancement,
and/or in certain circumstances preservation of aquatic resources for the purposes of offsetting unavoidable adverse
impacts which remain after all appropriate and practicable avoidance and minimization has been achieved.
5. Compensatory Mitigation Project means the site or sites scheduled in the Declarations to the policy at which the
Named Insured is implementing a Mitigation Plan approved by the Authorizing Agency under 33 CFR 332 or
Applicable State Regulation scheduled in the Declarations to the policy.
6. Default means a written and final determination made by the Authorizing Agency that the Named Insured has
failed to successfully complete construction activities and/or has failed to achieve the Performance Standards, as
applicable, in accordance with the Mitigation Plan, at a Compensatory Mitigation Project site scheduled in the
Declarations to the policy, but only if such determination is made following:
(1) a period of time as determined by the Authorizing Agency in accordance with applicable Compensatory
Mitigation regulations after the Authorizing Agency has issued a Deficiency Notice for that Mitigation Plan or
Compensatory Mitigation Project site, and
(2) the Named Insured's best efforts to mitigate any deficiencies identified by the Authorizing Agency in any prior
Deficiency Notice for that Mitigation Plan or Compensatory Mitigation Project site for the purpose of
preventing the Default.
Default shall not include any determination by the Authorizing Agency that the Named Insured has failed to comply
with, or breached, any other term or condition of the Mitigation Instrument or other document thereunder, other than
the construction activities and/or Performance Standards, as applicable, in a Mitigation Plan for a Compensatory
Mitigation Project site scheduled in the Declarations to the policy, or any resultant suspension or termination of the
Mitigation Instrument as a result of such non-compliance or breach.
7. Deficiency Notice means a written notice issued by the Authorizing Agency to the Named Insured:
(1) advising that it is not progressing towards, or on track to, successfully complete construction and/or meeting the
Performance Standards in accordance with the Mitigation Plan for a Compensatory Mitigation Project site;
and
(2) requesting that the Named Insured implement measures to correct the deficiencies, including but not limited to
implementation of an Adaptive Management Plan, or modifications to the existing Mitigation Plan, and/or
(3) modifying, decreasing or suspending credit sales of the Mitigation Site until the Named Insured successfully
completes measures to correct deficiencies in the implementation of a Mitigation Plan for a Compensatory
Mitigation Project site.
8. Effective Coverage Period means the term set forth in the Declarations to the policy.
9. Financial Assurances means the amount of reasonable and necessary costs to remedy a Default determination and
Claim made by the Authorizing Agency, which amount shall be determined by the lesser of the following:
(1) Mitigation Expenses required to successfully complete the Compensatory Mitigation at the Compensatory
Mitigation Project site from which the Default has been determined; or
(2) Mitigation Expenses required to provide replacement Compensatory Mitigation at another site; or
(3) the actual costs to purchase replacement mitigation credits from another mitigation site and any legal fees
associated with the purchase.
All subject to the Limit of Liability shown on the Declarations to the policy, associated with the Effective Coverage
Period in effect at the time of the issuance of a Deficiency Notice which, despite the Named Insured's best efforts,
ultimately results in a Default determination and Claim made by the Authorizing Agency.
Mitigation Expenses under (1) and (2) above means the direct costs of engineers, contractors and subcontractors, to
design, plan, engineer, construct, and implement the Compensatory Mitigation work at the site, exclusive of profit or
markup of any kind by, or in favor of, the Named Insured. Direct costs may include reasonable administrative and
management costs incurred by such engineers, contractors, and subcontractors, but only to the extent such costs are
directly and exclusively allocable to the actual Compensatory Mitigation work being performed at the site,
Mitigation Expenses under (2) above includes the cost to acquire a replacement property and includes legal fees
associated with the acquisition.
CMI 6600 05 19 Page 2 of 7

Mitigation Expenses under (1) and (2) above shall not include: (i) any costs for insurance or bonds, including those
costs attendant to securing and reporting in connection with such insurance and bonds; (ii) legal fees of any kind,
except those noted in (2) and (3) above; (iii) costs related to reporting and other obligations under this policy, and (iv)
any costs, charges or expenses (including salaries, benefits, or fringes) of the Named Insured, unless such costs are
directly attributable to the implementation of the tasks and activities for the Compensatory Mitigation and the
Company has approved and consented to the work and costs prior to them being incurred.
10. Insured means:
(1) The Named Insured but only with respect to liability incurred from the Default of a Mitigation Instrument to
which this insurance applies;
(2) The Named Insured's current or former members and partners, and their spouses, but only with respect to
liability incurred from the Named Insured's Default of a Mitigation Instrument, to which this insurance applies;
(3) The Named Insured's current or former directors, executive officers, and stockholders, and their spouses, but
only with respect to liability incurred from the Named Insured's Default of a Mitigation Instrument, to which this
insurance applies.
11. Mitigation Site means the site, or suite of sites, where aquatic resources are being restored, reestablished,
established, created, enhanced, and/or preserved as part of the Compensatory Mitigation Project governed by the
Mitigation Instrument, as scheduled in the Declarations to the policy.
12. Mitigation Instrument means the legal document scheduled in the Declarations to the policy, provided that such
document is prepared, approved, filed, and documented in compliance with applicable law.
13. Mitigation Plan means the plan prepared by the Named Insured per 33 CFR 332.4 c(2) through c(14), or Applicable
State Regulation scheduled in the Declarations to the policy, and approved by the Authorizing Agency, for
Compensatory Mitigation to be performed at each Compensatory Mitigation Project site as scheduled in the
Declarations to the policy.
14. Named Insured means the entity listed in the Declarations to the policy that has executed the approved Mitigation
Instrument.
15. Policy Period means the period set forth in the Declarations to the policy, or any shorter period arising as a result of
cancellation or termination of the policy.
16. Performance Standards as defined in 33 CFR 332.2 or Applicable State Regulation scheduled in the Declarations to
the policy, means observable or measurable physical (including hydrological), chemical and/or biological attributes
that are used to determine if a Compensatory Mitigation Project meets its objectives. Performance Standards also
mean the completion of initial construction and planting in accordance with the Mitigation Plan.
SECTION III — EXCLUSIONS
This insurance does not apply to Claims, Defaults, or Financial Assurances based upon, arising out of, or relating to:
1. Force Majeure, or any natural catastrophe or disaster, as defined in the Mitigation Instrument;
2. Liability assumed by the Named Insured under any contract or agreement, including but not limited to liability for
payment of attorney's fees, termination fees, consequential or liquidated damages, or liabilities of another pursuant to
any indemnification agreement, except for liability to pay Financial Assurances as a result of a Default under a
Mitigation Instrument.
3. Any legal fees, costs, or expenses (including expert or consultant fees) incurred in the defense of any liability or
obligation of the Named Insured for any reason.
4. Fluctuation in, short fall of, or devaluation of, the monetary value of, or marketability of, mitigation credits (or other
equivalent credits), or of any real property, including a site at which Compensatory Mitigation is being performed, or
is planned to be performed, under the Mitigation Instrument.
CMI 6600 05 19 Page 3 of 7

SECTION IV — LIMITS OF INSURANCE
1. The "Policy Aggregate" Limit of Insurance shown in the Declarations and the rules below fix the most we will pay on
behalf of the Named Insured for the Compensatory Mitigation Site shown in the Declarations and described by the
Mitigation Plan regardless of the number of Defaults, Claims, Financial Assurances, Mitigation Plans, or
Compensatory Mitigation Project sites.
2. The "Total All Claims" Limit set forth in the Declarations for each Effective Coverage Period is the most we will pay
on behalf of the Named Insured for Financial Assurances as a result of all Claims first made against the Named
Insured during the Policy Period, where a Deficiency Notice that results in the Default and Claim, is first issued by
the Authorizing Agency during the scheduled Effective Coverage Period, and is first reported in writing to us,
during that same scheduled Effective Coverage Period.
3. Subject to item 2 above, the "Per Claim" Limit set forth in the Declarations is the most we will pay on behalf of the
Named Insured for Financial Assurances as a result of any one Claim first made against the Named Insured
during the Policy Period, where a Deficiency Notice that results in the Default and Claim, is first issued by the
Authorizing Agency during the scheduled Effective Coverage Period, and is first reported in writing to us, during
that same scheduled Effective Coverage Period.
4. Subject to items 2 and 3 above, the maximum Limits of Insurance we will pay for any Claim made during the Policy
Period shall be the limits corresponding to the scheduled Effective Coverage Period stated in the Declarations, in
which the Deficiency Notice that results in the Default and Claim is first made against the Named Insured and
reported to us in writing during that same scheduled Effective Coverage Period.
At the end of each Effective Coverage Period, the Limit of Insurance shall expire and will no longer be available for
payment of any new or additional Claim resulting from a Deficiency Notice not already issued by the Authorizing
Agency against the Named Insured and reported to us in writing before expiration of the Effective Coverage
Period. If the Named Insured resolves the Deficiency Notice issued during the Effective Coverage Period to the
satisfaction of the Authorizing Agency in writing, and the Effective Coverage Period has expired, the limit of
insurance for that Effective Coverage Period shall no longer be available for future Claims.
At the end of each Effective Coverage Period, the limit of available insurance shall also be replaced by the "Per
Claim" Limit and "Total All Claims" Limit scheduled in the subsequent Effective Coverage Period.
One or more Claims made against the Named Insured, and reported in writing to the Company, that arise out of the
same, interrelated, repeated, or associated Defaults in a single Mitigation Plan, or at a single Compensatory
Mitigation Project site, shall be considered a single Claim, and the Company's total liability for Financial Assurance
from that Claim shall be subject to the Limits of Insurance corresponding to the "Per Claim" Limit for the Effective
Coverage Period set forth in the Declarations (or any reduced or modified Limit established by endorsement to this
policy) and effective at the time the initial Deficiency Notice that results in the Claim was first issued by the
Authorizing Agency against the Named Insured and first reported in writing to the Company during that same
Effective Coverage Period.
SECTION V — REPORTING, ADJUSTMENT & SETTLEMENT
1. NOTICE OF A DEFICIENCY
The Named Insured shall provide written notice to the Company as soon as possible of any Deficiency Notice
received by the Named Insured from the Authorizing Agency. The Named Insured shall forward to the Company
a copy of the Deficiency Notice and any other communication or information related thereto, including the following:
(1) Details of the Compensatory Mitigation Project site and Mitigation Plan for which the Deficiency Notice was
received;
(2) The Named Insured's plan to remedy the deficiencies noted by the Authorizing Agency, including any planned
modifications to the Mitigation Plan and/or its Adaptive Management Plan in order to prevent a Default under
the Mitigation Instrument;
(3) Any other information necessary for the Company to understand the circumstances surrounding the Deficiency
Notice and/or the Named Insured's plan to meet the applicable Performance Standards and prevent a Default
under the Mitigation Instrument.
The Named Insured shall have the duty to use its best efforts to mitigate a Deficiency Notice in order to prevent a
Default under the Mitigation Instrument. The Company shall have the right to investigate any Deficiency Notice.
The Named Insured shall cooperate with the Company's investigation, and make available upon the Company's
request, documents for review and personnel for interview, all without charge to the Company. A Deficiency Notice
is not a Claim and shall not trigger coverage under the policy.
CMI 6600 05 19 Page 4 of 7

2. NOTICE OF A DEFAULT or CLAIM
The Named Insured shall provide immediate written notice to the Company of any Claim made against the Named
Insured, or of any determination by the Authorizing Agency that the Named Insured is in Default of the Mitigation
Instrument. The Named Insured shall immediately forward to the Company every demand, notice, or other
communication related to the Claim or the determination of Default as well as the following information:
(1) Details of the Compensatory Mitigation Project site and Mitigation Plan determined to be in Default and for
which the Claim is being made;
(2) An explanation of the events and circumstances leading to the Default, including the specific basis and reasons
upon which the Default has been determined;
(3) A description of the mitigation efforts undertaken to prevent or cure the Default (and the deficiencies leading
thereto), including a detailed description of the amount of funds expended and the type of activity conducted;
(4) An estimate of the costs necessary to cure the Default;
(5) Any other information necessary for the Company to understand the circumstances surrounding the Default or
Claim.
The Company shall have the right to investigate any Default or Claim noticed under the policy. The Named Insured
shall cooperate with the Company's investigation and, upon the Company's request, shall assist in the investigation
and settlement of the Claim, and make available to the Company, documents for review and personnel for interview,
all without charge to the Company. Notice of a Default is not a Claim and shall not trigger coverage under the policy.
In the event that the Authorizing Agency first provides notice of a Claim to the Company, the Company may
investigate and pay or adjust such claim as provided herein in its sole discretion without any duty to make inquiry of
the Insured with respect to the Claim, and such payment or adjustment shall reduce the Limits of Liability remaining
under the policy. The Insured shall not be released from any of its obligations to the Company under this policy by
virtue of any such payment or adjustment, including its duties to indemnify the Company pursuant to the
Indemnification Endorsement attached to this policy.
3. CLAIM ADJUSTMENT AND SETTLEMENT
The Insured(s) agree that the Company shall have the right to adjust, pay or settle any Claim, to which this insurance
applies, at its sole discretion, without the Insured(s) consent, subject to the available and remaining Limits of
Insurance for the applicable Effective Coverage Period, and that such adjustment, payment, or settlement may
include, but not be limited to, the following actions:
(1) Payment of reasonable and necessary Financial Assurances to a designee or standby trust, as approved by the
Authorizing Agency, for distribution by such designee or trustee to complete the Compensatory Mitigation in
accordance with the Insured's legal responsibility under the Mitigation Instrument, pursuant to the Authorizing
Agency's authority under the Mitigation Instrument and/or 33 CFR 332 or Applicable State Regulation
scheduled in the Declarations to the policy; or
(2) Payment of reasonable and necessary Financial Assurances to a replacement contractor, as approved by the
Authorizing Agency or its designee, and subject to the Company's written consent and approval, to either
perform replacement Compensatory Mitigation at another site or to complete the Compensatory Mitigation at
the Compensatory Mitigation Project site from which the Default has been determined, whichever is less.
The Company may make such inquiries and investigations of the Claim as it deems expedient, including inquiries to
the Named Insured or the Authorizing Agency regarding the Claim, and payment of Financial Assurances. The
Insured(s) agree that no Claim or Financial Assurances will be paid without the prior written consent and approval
of the Authorizing Agency, and that the Company shall incur no liability to the Insured(s) resulting from such
inquiries and/or resulting from the non-payment of any Claim or Financial Assurances for which the Authorizing
Agency has not consented and/or approved. The Insured(s) shall not admit liability or settle any Claim without the
Company's consent. The Insured(s) shall not be released from any of their duties or obligations to the Company
under this policy by virtue of any payment or adjustment of a Claim by the Company, including the Insured(s) duties
to indemnify the Company, according to the Indemnification Endorsement attached to this policy.
SECTION VI — CONDITIONS
1. LEGAL ACTION AGAINST THE COMPANY
No action shall lie against the Company unless, as a condition precedent thereto, there shall have been full
compliance with all of terms of this policy, nor until the amount of the Named Insured's obligation to pay shall have
been finally determined either by judgment against the Named Insured after actual trial or by written agreement of the
Named Insured, the Authorizing Agency and the Company. No person or organization shall have any right under
CMI 6600 05 19 Page 5 of 7

this policy to join the Company as a party to any action against any Insured to determine the Insured's liability, nor
shall the Company be impleaded by any Insured or its legal representative.
2. TRANSFER OF POLICY
Your rights and duties under this policy may not be assigned or transferred without our written consent.
3. BANKRUPTCY
Bankruptcy or insolvency of the Named Insured will not relieve the Company of its obligations under this policy, nor
shall it relieve the Insured(s) of their indemnification obligations to the Company.
4. RENEWAL, CANCELLATION AND TERMINATION
(1) The Company may renew this policy at its sole discretion, pursuant to the Company's rates, rules, underwriting
guidelines and underwriting decisions in effect as of the expiration date of the Policy Period. Renewal of this
policy will not be in effect unless the Company issues a written quote and binder outlining the terms of coverage
and the Named Insured accepts such terms in writing.
(2) The Company may cancel the policy by mailing to the Named Insured at the last known address, and the
Authorizing Agency, written notice of not less than One Hundred and Twenty days (120) before such
cancellation shall be effective. The notice shall include the reason for cancellation which may include:
a. The policy is no longer needed;
b. Non-payment of premium;
c. Fraud, material misrepresentation or intentional concealment of information which increases the risk originally
insured; or
d. The Insured's failure to comply with the terms and conditions of this policy including the failure to pay any
premium when due.
(3) Upon release by the Authorizing Agency pursuant to applicable law, the Insured may cancel the policy by
mailing or delivering written notice to us stating when the cancellation shall be effective.
(4) Termination by other than cancellation:
The policy may terminate without the approval of the Authorizing Agency at the earlier of:
a. The expiration date of the policy as shown in the Declarations to the policy;
b. A written acknowledgement, certification or other legally equivalent determination by the Authorizing Agency
that the Mitigation Site has closed after having met the Performance Standards set forth in the Mitigation
Instrument.
(5) The minimum earned premiums due for this policy shall be calculated in accordance with the following:
a. The minimum earned premium due for this policy is the percentage shown on the Declarations to the policy
b. In the event of cancellation of this policy by the Company for reasons other than nonpayment of premium, the
earned premium for this policy shall be computed on a pro-rata basis.
c. Premiums applicable to any subsequent endorsements will be in addition to the minimum premium shown in
the Declarations to the policy.
Cancellation or termination of the policy shall be subject to release of the Company by the Authorizing Agency.
Upon the effective date of such release, all obligations on the part of the Company hereunder shall automatically
cease and neither the Authorizing Agency nor the Insured shall have further recourse against the Company with
respect to unpaid Financial Assurances, including existing or future liabilities or obligations arising from Claim(s)
previously reported or pending under the policy.
5. CHANGES
Notice to any agent or knowledge possessed by any agent or by any other person shall not effect a waiver or change
in any part of this policy or estop the Company from asserting any right under the terms of this policy; nor shall the
terms of this policy be waived or changed, except by endorsement issued by the Company to form a part of this policy
with the prior approval of the Authorizing Agency.
6. COOPERATION
The Named Insured shall cooperate with the Company, and offer all reasonable assistance in the Company's
investigations. The Company may require that the Named Insured submit to examination under oath, and attend
hearings, depositions and trials. In the course of investigation, the Company may require written statements or the
Named Insured's attendance at meetings with the Company. The Insured must assist the Company in effecting
settlement, securing and providing evidence and obtaining the attendance of witnesses.
CMI 6600 05 19 Page 6 of 7

7. COVERAGE TERRITORY
The coverage provided under this policy shall only apply to Mitigation Sites located within the United States of
America.
8. AUDIT AND INSPECTION
(1) We may examine and audit your books and records as they relate to this policy at any time during the policy
period and up to three (3) years after the end of the policy period;
(2) We may be permitted but not obligated to, interview persons employed by you; or
(3) We shall be permitted but not obligated to inspect, sample and monitor the Named Insured's Mitigation Site
during the Policy Period or any time thereafter. Neither our right to make inspections, sample and monitor nor
the actual undertaking thereof nor any report thereon shall constitute an undertaking, on behalf of the Named
Insured or others, to determine or warrant that the Mitigation Site or operations are safe, healthful, or conform to
acceptable engineering practice or are in compliance with any law, rule or regulation. The Named Insured
agrees to provide appropriate personnel to assist our representatives during any inspection.
9. OTHER INSURANCE
(1) This insurance is primary, except when (2) below applies.
(2) This insurance is excess:
a. When stated in the Declarations to apply in excess of, or contingent upon the absence of, other appropriate
instruments; or
b. Over any other bonds, reserves, escrows, trust funds, credits, or valid and collectible insurance available to
the Named Insured to cover Claims for Financial Assurances under the Mitigation Instrument; or
c. Over any other appropriate instruments applicable to cover Claims for Financial Assurances under the
Mitigation Instrument.
When this insurance is excess over other valid and collectible appropriate instruments, the Company shall be
obligated to pay only its share of the applicable amount and shall not contribute with such instruments.
The Insured shall promptly, upon the request of the Company, provide the Company with copies of all such
instruments or documentation.
10. MATERIAL CHANGE IN RISK
In consideration of the Company's acceptance of this insurance, the Named Insured hereby agrees the Named
Insured must notify the Company, in writing, of any changes in the Mitigation Instrument, including changes in the
credits release schedule, or any other information that materially changes the risk from that originally assumed by the
Company at policy inception.
11. SOLE AGENT
The Named Insured shown in the Declarations shall act on behalf of, and serve as the sole agent for, all Insureds
with respect to the return or payment of any premiums, the issuance by the Company of the policy, the receipt or
acceptance of any endorsements issued to form a part of the policy, or the receiving of any notices from the Company
required by this policy.
12. SUBROGATION
In the event of any payment under this policy by the Company, the Company shall be subrogated to all of the rights of
recovery that the Insured(s) may have against any person or organization and the Insured(s) shall execute and
deliver instruments and papers and do whatever else is necessary to secure such rights. The Insured(s) shall do
nothing to prejudice such rights.
CMI 6600 05 19 Page 7 of 7

ENDORSEMENT
This endorsement forms a part of the policy to which it is attached. Please read it carefully.
SERVICE OF SUIT
Pursuant to any statute of any state, territory or district of the United States which makes provision therefore, we hereby
designate the Superintendent, Commissioner or Director of Insurance or other officer specified for that purpose in the
Statute, or his successor or successors in office, as our true and lawful attorney upon whom may be served any lawful
process in any action, "suit" or proceeding instituted by or on behalf of you or any beneficiary hereunder arising out of this
contract of insurance, and hereby designate the above named as the person to whom the said officer is authorized to mail
such process or a true copy thereof.
It is further agreed that service of process in such "suit" may be made upon Michael Kilgas, or his nominee of the
Company at 7233 East Butherus Drive, Scottsdale, Arizona 85260 and that in any "suit" instituted against any one of them
upon this policy, we will abide by the final decision of such Court or of any Appellate Court in the event of an appeal.
It is agreed that in any state requiring a standard form of policy, insurance hereunder on values or properties in such state
shall attach and cover in accordance with the terms and conditions of such standard form.
S020 (04-05) Page 1 of 1

INTERLINE
IL12020116
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ CAREFULLY
OFFICE OF FOREIGN ASSET CONTROL (OFAC)
EXCLUSION ENDORSEMENT
No insurer shall be deemed to provide cover and no insurer shall be liable to pay any claim or provide any benefit
hereunder to the extent that the provision of such cover, payment of such claim or provision of such benefit would
expose that insurer to any sanction, prohibition or restriction under United Nations resolutions or the trade or
economic sanctions laws or regulations of the European Union, United Kingdom or the United States.
IL 12 02 01 16 Page 1 of 1

ENDORSEMENT
This endorsement forms a part of the policy to which it is attached. Please read it carefully.
EXCLUSION OF CERTIFIED ACTS OF TERRORISM
This endorsement modifies insurance provided under the following:
ENVIRONMENTAL COMBINED POLICY
COMMERCIAL GENERAL LIABILITY COVERAGE PART
CONTRACTORS POLLUTION LIABILITY
CONTRACTORS AND CONSULTANTS POLICY
SITE SPECIFIC POLLUTION LIABILITY
PRODUCTS/COMPLETED OPERATIONS LIABILITY COVERAGE PART
OWNERS AND CONTRACTORS PROTECTIVE LIABILITY COVERAGE PART
RAILROAD PROTECTIVE LIABILITY COVERAGE PART
FOLLOW FORM EXCESS LIABILITY
CONTRACTORS POLLUTION AND PROFESSIONAL LIABILITY POLICY
A. The following exclusion is added:
This insurance does not apply to:
TERRORISM
Any injury or damage arising, directly or indirectly, out of a certified act of terrorism.
B. The following definitions are added:
1. For the purposes of this endorsement, any injury or damage means any injury or damage covered under any
Coverage Part to which this endorsement is applicable, and includes but is not limited to bodily injury, property
damage, personal and advertising injury, injury or cleanup costs as may be defined in any applicable Coverage
Part.
2. Certified act of terrorism means an act that is certified by the Secretary of the Treasury, in accordance with the
provisions of the federal Terrorism Risk Insurance Act, to be an act of terrorism pursuant to such Act. The criteria
contained in the Terrorism Risk Insurance Act for a certified act of terrorism include the following:
a. The act resulted in insured losses in excess of $5 million in the aggregate, attributable to all types of
insurance subject to the Terrorism Risk Insurance Act; and
b. The act is a violent act or an act that is dangerous to human life, property or infrastructure and is committed
by an individual or individuals as part of an effort to coerce the civilian population of the United States or to
influence the policy or affect the conduct of the United States Government by coercion.
C. The terms and limitations of any terrorism exclusion, or the inapplicability or omission of a terrorism exclusion, do not
serve to create coverage for injury or damage that is otherwise excluded under this Coverage Part.
ALL OTHER TERMS AND CONDITIONS OF THE POLICY APPLY AND REMAIN UNCHANGED.
ENV 2225 10 18 Page 1 of 1

ENDORSEMENT
This endorsement forms a part of the policy to which it is attached. Please read it carefully.
COVERED LOCATION ENDORSEMENT
COMPENSATORY MITIGATION INSURANCE
In consideration of the premium charged, and notwithstanding anything contained in this Policy to the contrary, it is hereby
understood and agreed that the following is a Covered Location:
COVERED LOCATION
The Compensatory Mitigation Bank Project scheduled on the Declarations page as the Hair Sheep Stream
Mitigation Bank, in Surry County, NC, as better described in the Hair Sheep Stream Mitigation Plan,
Section I Introduction, and as better shown in Figure 1 of the Hair Sheep Stream Mitigation Plan.
ALL OTHER TERMS AND CONDITIONS OF THE POLICY SHALL APPLY AND REMAIN UNCHANGED.
CMI 6601 12 16 Page 1 of 1

ENDORSEMENT
This endorsement forms a part of the policy to which it is attached. Please read it carefully.
INDEMNIFICATION ENDORSEMENT
COMPENSATORY MITIGATION INSURANCE
In consideration of the premium charged, and notwithstanding anything contained in this Policy to the contrary, it is hereby
understood and agreed that SECTION VI — CONDITIONS is modified by the addition of the following:
INDEMNIFICATION AGREEMENT
The undersigned Indemnitors, and their successors and assigns, jointly and severally, hereby agree to indemnify, release
and hold the Company, Nautilus Insurance Company, harmless for any payments the Company makes under Nautilus
Insurance Company Policy Number TBD, the policy, and for the costs, fees, and expenses the Company incurs related to
the administration of, or disputes over, any such payments. The indemnified amounts shall include:
1. Financial Assurances paid by the Company; and/or
2. Deductible amounts, if any, advanced by the Company; and/or
3. The costs of obligations that the Company may incur by reason of having issued the policy; and/or
4. Costs, fees and expenses (including fees of experts, or consultants) resulting from the investigation arising out of or related
to payments demanded or made under the policy, or out of any dispute between the Insured(s) and the Authorizing
Agency regarding any payment demanded or made, or out of any legal action by the Company to secure or attempt to
secure any Claim or policy release resulting therefrom; and/or
5. Claim handling expenses, which in the event of a Claim shall be calculated at a minimum of 12% of the sum of payments
for Financial Assurances made pursuant to the policy; and/or
6. Any legal fees to effectuate this Indemnification Agreement.
In the event a Deficiency Notice is issued to the insured by the Authorizing Agency on a Compensatory Mitigation
Project covered under this insurance policy, the Indemnitor's agree to post collateral in the form of an evergreen letter of
credit immediately upon demand by Nautilus Insurance Company in an amount equaling the aggregate limit of the Nautilus
Insurance Company policy.
In the event a claim is made under this insurance policy, the Indemnitors agree to deposit cash collateral immediately upon
demand by Nautilus Insurance Company an amount equaling all of the following: (a) the face amount of any claim or
demand that is asserted against Nautilus Insurance Company under this insurance policy plus the Company's estimate of
the costs and expenses Company may sustain and incur while paying, compromising, resisting, or appealing the claim or
demand at Company's sole discretion; (b) sums posted by Company as a reserve for the payment of potential claims and/or
expenses; (c) all costs and expenses incurred in connection with investigating, paying or managing any claim, and/or
enforcing this Agreement, including but not limited to legal fees and expenses, professional and consulting fees, technical
and expert witness fees and expenses; (d) all accrued and unpaid premiums owing to Company for the issuance,
continuation or renewal of any insurance policy for the Indemnitors; (e) funds loaned or advanced by Company at the
Company's sole discretion to the indemnitor; and (f) all other amounts payable to Company according to the terms and
conditions of this Agreement or any other agreement between Company and Indemnitors. Company may, in its sole
discretion, either retain or use any part or all of the collateral in settlement or payment of any claim made under any
insurance policy, as collateral or reimbursement for any actual Liability and Loss already incurred, as reserve to cover the
amount of any potential Liability and Loss, or for any other purpose related to any Liability and Loss for which the Indemnitors
would be required to collateralize, exonerate, or indemnify Company under the terms of this Agreement. The Indemnitors
shall be obligated to deposit the amount of collateral demanded by the Company regardless of whether they dispute their
liability for any Deficiency Notice or claim or assert any defenses to the validity or enforcement of this Agreement. In the
event that the Company demands collateral from more than one Indemnitor, the Company shall be entitled, in its sole
discretion, to apportion the amount of collateral required to be deposited by each Indemnitor. If the Company permits the
CMI 6602 02 19 Page 1 of 4

Indemnitors to deposit less than the full amount of either (a) through (f) herein, the Company may, from time to time, require
the Indemnitors to increase the amount of the collateral by any amount the Company deems appropriate, in its sole
discretion, up to an amount equal to (a) through (f) herein. In the event that the Indemnitors fail to deposit the amount of
cash collateral required under this provision, the Company may, in its sole discretion, direct the Indemnitors to deposit
alternate forms of collateral security acceptable to the Company. Indemnitors acknowledge that their duty to deposit
collateral under this Paragraph is specifically enforceable because the Company lacks an adequate remedy at law and their
failure to deposit collateral with the Company as required by this Paragraph will cause irreparable harm to as to justify
injunctive relief compelling the deposit of collateral. The Company agrees to refund any unused portion of the deposit,
without any interest or other damages for loss of use of such funds, upon the termination of all liability of the Company on
all insurance policies and the full performance of all of the Indemnitors of all obligations under this Agreement.
When the Indemnitor's obligation to pay for indemnified amounts pursuant to the policy become due, the Company shall
make a demand in the form of a written invoice for the indemnification amount to the Indemnitor's address as stated below
or will draw the funds from the collateral amount posted above. If the Indemnitor agrees to pay the invoice rather than have
the Company draw upon the collateral posted above, the Indemnitor agrees to pay the full amount of the invoice within thirty
(30) days of its issuance. If the Company has not received full payment from the Indemnitor within thirty (30) days of issuance
of the Company's written invoice, the Company will draw the funds from the collateral posted above. If the indemnitor fails
to post the required collateral and fails to pay the full amount of the invoice when due, interest shall accrue at the annual
rate equal to the current prevailing prime interest rate as published in the Wall Street Journal plus 200 basis points until full
payment is received by the Company. If partial payment is received by the Company the aforementioned interest rate shall
apply to that portion which remains outstanding until the full payment is received by the Company.
In the event of a claim, the Company, at its sole discretion, may request that the insured assign, transfer and set over to
the Company, all of their rights under all wetlands mitigation contract(s) insured by this policy. In the event that the Company
receives any monies in excess of the total amount of its Liability and Loss or potential Loss on any individual insurance
policy, Company shall be entitled to apply any such excess amounts toward the Company's Liability and Loss or potential
Liability and Loss for claims on any other insurance policy issued by the Company to the same insured on other wetlands
mitigation projects until the Company has been fully reimbursed and/or collateralized as provided by the terms of this
Agreement. In the event of a claim, Indemnitors further hereby agree to appoint and designate the Company and its
authorized representatives as their respective Attorneys -in -Fact with power to (i) endorse and sign in the name of
Indemnitor, as payee or otherwise, all documents and all checks, drafts, warrants or other instruments made or issued in
connection with the insurance policy(s); and (ii) execute any and all documents in connection with the insurance policy(s)
consistent with the Company's rights as assignee per the terms of this paragraph.
Each Principal and Indemnitor, who signs below, agrees not to change or convert its respective individual, corporate or
partnership status to the extent such change has the effect of limiting, reducing or shielding the liability of either the entity
or its partners and/or officers hereunder, without the prior, express, written consent of Company. Should any Indemnitor so
change its respective corporate or partnership status without the prior, express, written consent of the Company, Indemnitor
agrees that such change in its status shall not limit, reduce or otherwise shield its obligations, its partners' and/or officers'
obligations, to the Company which arise from this Agreement. The Indemnitors hereby expressly waive as against Company
any and all defenses which may arise from such a conversion to an LLC, LLP or similar status. Indemnitors acknowledge
that the Company relies upon the assets reflected in their financial statements in the issuance of insurance policies, and
agree not to dispose of or transfer said assets, except in the ordinary course of business, without the prior, express, written
consent of the Company.
Each Indemnitor who is an individual agrees to give the Company written notice of any change in his/her principal residence
within 30 days of the change of address. Each Indemnitor, that is not an individual, agrees not to change its principal place
of business or the state of jurisdiction in which it is incorporated or otherwise organized without also giving the Company
thirty (30) days prior written notice of the proposed change. If the Company has previously filed a Uniform Commercial Code
Financing Statement with respect to such Indemnitor, Indemnitor agrees that the Company may file a Financing Statement
in the new state or jurisdiction.
Indemnitors agree that, at any time, the Company may release any Indemnitor or Indemnitors from this Agreement, without
affecting, reducing or otherwise limiting the obligations of any remaining Indemnitor, and Indemnitors hereby expressly
waive both (a) notice from the Company of any such release, and (b) any defense that may be created in favor of any
remaining Indemnitor as a result of the Company's release of another Indemnitor.
This endorsement shall not increase the applicable Limits of Insurance shown in the Declarations, nor shall the
indemnification reinstate any limit of insurance.
CMI 6602 02 19 Page 2 of 4

Indemnitors acknowledge and agree that each has a material and beneficial interest in all insurance issued hereunder by
the Company and that each is authorized and empowered by their respective bylaws, charters, membership agreements,
or other organizational documents to execute, deliver and perform their obligations under this Agreement with respect to all
such insurance policies. Indemnitors further represent and warrant that they have obtained all internal corporate and/or
organizational approvals, consents and authorizations necessary to facilitate the execution, delivery and performance of
this Agreement, any amendments hereto, and any other agreement executed.
IN WITNESS WHEREOF, the Indemnitors, intending to be legally bound hereby, represent that they have read and
understood the foregoing provisions, that they freely and voluntarily enter into this Agreement, and they have below set their
hands and affixed their seals, as appropriate, this day of , 20
By signing below each individual executing this Agreement on behalf of a business, and each business entity
executing this Agreement on behalf of another business entity, represents and warrants that he, she or it is duly
authorized by Indemnitor to all of the terms and conditions of this Agreement.
Indemnitor: KCI Technologies, Inc. WITNESS / NOTARY PUBLIC
Address: 936 Ridgebrook Rd., Sparks, NC 21152 (Seal)
Tax ID No:
Authorized Representative:
Title:
Email:
(Signature)
Print Name:
My commissions expires:
CMI 6602 02 19 Page 3 of 4

ACKNOWLEDGMENT
Corporate Acknowledgment
STATE OF _
COUNTY OF
On this day of , 20 , before me, the undersigned, a Notary Public in and for the said State, personally
appeared (Print Name of Authorized Representative), known by me (or proved to me on the basis of satisfactory evidence)
to be the person who is identified in and who executed the foregoing Indemnification Agreement, and who being by me duly
sworn, deposes and says that (s)he is the (Insert Title), of (Indemnitor), and that (s)he is duly authorized to execute said
Indemnification Agreement as the act and deed of said Corporation, and acknowledged to me that such Corporation
executed the within instrument pursuant to its by-laws or a resolution of its board of directors.
NOTARY PUBLIC
(Seal)
Print Name:
My commissions expires:
ALL OTHER TERMS AND CONDITIONS OF THE POLICY SHALL APPLY AND REMAIN UNCHANGED.
CMI 6602 02 19 Page 4 of 4

ENDORSEMENT
This endorsement forms a part of the policy to which it is attached. Please read it carefully.
INDEMNIFICATION ENDORSEMENT
COMPENSATORY MITIGATION INSURANCE
In consideration of the premium charged, and notwithstanding anything contained in this Policy to the contrary, it is hereby
understood and agreed that SECTION VI — CONDITIONS is modified by the addition of the following:
INDEMNIFICATION AGREEMENT
The undersigned Indemnitors, and their successors and assigns, jointly and severally, hereby agree to indemnify, release
and hold the Company, Nautilus Insurance Company, harmless for any payments the Company makes under Nautilus
Insurance Company Policy Number To be Assigned, the policy, and for the costs, fees, and expenses the Company incurs
related to the administration of, or disputes over, any such payments. The indemnified amounts shall include:
1. Financial Assurances paid by the Company; and/or
2. Deductible amounts, if any, advanced by the Company; and/or
3. The costs of obligations that the Company may incur by reason of having issued the policy; and/or
4. Costs, fees and expenses (including fees of experts, or consultants) resulting from the investigation arising out of or related
to payments demanded or made under the policy, or out of any dispute between the Insured(s) and the Authorizing
Agency regarding any payment demanded or made, or out of any legal action by the Company to secure or attempt to
secure any Claim or policy release resulting therefrom; and/or
5. Claim handling expenses, which in the event of a Claim shall be calculated at a minimum of 12% of the sum of payments
for Financial Assurances made pursuant to the policy; and/or
6. Any legal fees to effectuate this Indemnification Agreement.
In the event a Deficiency Notice is issued to the insured by the Authorizing Agency on a Compensatory Mitigation
Project covered under this insurance policy, the Indemnitor's agree to post collateral in the form of an evergreen letter of
credit immediately upon demand by Nautilus Insurance Company in an amount equaling the aggregate limit of the Nautilus
Insurance Company policy.
In the event a claim is made under this insurance policy, the Indemnitors agree to deposit cash collateral immediately upon
demand by Nautilus Insurance Company an amount equaling all of the following: (a) the face amount of any claim or
demand that is asserted against Nautilus Insurance Company under this insurance policy plus the Company's estimate of
the costs and expenses Company may sustain and incur while paying, compromising, resisting, or appealing the claim or
demand at Company's sole discretion; (b) sums posted by Company as a reserve for the payment of potential claims and/or
expenses; (c) all costs and expenses incurred in connection with investigating, paying or managing any claim, and/or
enforcing this Agreement, including but not limited to legal fees and expenses, professional and consulting fees, technical
and expert witness fees and expenses; (d) all accrued and unpaid premiums owing to Company for the issuance,
continuation or renewal of any insurance policy for the Indemnitors; (e) funds loaned or advanced by Company at the
Company's sole discretion to the indemnitor; and (f) all other amounts payable to Company according to the terms and
conditions of this Agreement or any other agreement between Company and Indemnitors. Company may, in its sole
discretion, either retain or use any part or all of the collateral in settlement or payment of any claim made under any
insurance policy, as collateral or reimbursement for any actual Liability and Loss already incurred, as reserve to cover the
amount of any potential Liability and Loss, or for any other purpose related to any Liability and Loss for which the Indemnitors
would be required to collateralize, exonerate, or indemnify Company under the terms of this Agreement. The Indemnitors
shall be obligated to deposit the amount of collateral demanded by the Company regardless of whether they dispute their
liability for any Deficiency Notice or claim or assert any defenses to the validity or enforcement of this Agreement. In the
event that the Company demands collateral from more than one Indemnitor, the Company shall be entitled, in its sole
discretion, to apportion the amount of collateral required to be deposited by each Indemnitor. If the Company permits the
CMI 6602 02 19 Page 1 of 4

Indemnitors to deposit less than the full amount of either (a) through (f) herein, the Company may, from time to time, require
the Indemnitors to increase the amount of the collateral by any amount the Company deems appropriate, in its sole
discretion, up to an amount equal to (a) through (f) herein. In the event that the Indemnitors fail to deposit the amount of
cash collateral required under this provision, the Company may, in its sole discretion, direct the Indemnitors to deposit
alternate forms of collateral security acceptable to the Company. Indemnitors acknowledge that their duty to deposit
collateral under this Paragraph is specifically enforceable because the Company lacks an adequate remedy at law and their
failure to deposit collateral with the Company as required by this Paragraph will cause irreparable harm to as to justify
injunctive relief compelling the deposit of collateral. The Company agrees to refund any unused portion of the deposit,
without any interest or other damages for loss of use of such funds, upon the termination of all liability of the Company on
all insurance policies and the full performance of all of the Indemnitors of all obligations under this Agreement.
When the Indemnitor's obligation to pay for indemnified amounts pursuant to the policy become due, the Company shall
make a demand in the form of a written invoice for the indemnification amount to the Indemnitor's address as stated below
or will draw the funds from the collateral amount posted above. If the Indemnitor agrees to pay the invoice rather than have
the Company draw upon the collateral posted above, the Indemnitor agrees to pay the full amount of the invoice within thirty
(30) days of its issuance. If the Company has not received full payment from the Indemnitor within thirty (30) days of issuance
of the Company's written invoice, the Company will draw the funds from the collateral posted above. If the indemnitor fails
to post the required collateral and fails to pay the full amount of the invoice when due, interest shall accrue at the annual
rate equal to the current prevailing prime interest rate as published in the Wall Street Journal plus 200 basis points until full
payment is received by the Company. If partial payment is received by the Company the aforementioned interest rate shall
apply to that portion which remains outstanding until the full payment is received by the Company.
In the event of a claim, the Company, at its sole discretion, may request that the insured assign, transfer and set over to
the Company, all of their rights under all wetlands mitigation contract(s) insured by this policy. In the event that the Company
receives any monies in excess of the total amount of its Liability and Loss or potential Loss on any individual insurance
policy, Company shall be entitled to apply any such excess amounts toward the Company's Liability and Loss or potential
Liability and Loss for claims on any other insurance policy issued by the Company to the same insured on other wetlands
mitigation projects until the Company has been fully reimbursed and/or collateralized as provided by the terms of this
Agreement. In the event of a claim, Indemnitors further hereby agree to appoint and designate the Company and its
authorized representatives as their respective Attorneys -in -Fact with power to (i) endorse and sign in the name of
Indemnitor, as payee or otherwise, all documents and all checks, drafts, warrants or other instruments made or issued in
connection with the insurance policy(s); and (ii) execute any and all documents in connection with the insurance policy(s)
consistent with the Company's rights as assignee per the terms of this paragraph.
Each Principal and Indemnitor, who signs below, agrees not to change or convert its respective individual, corporate or
partnership status to the extent such change has the effect of limiting, reducing or shielding the liability of either the entity
or its partners and/or officers hereunder, without the prior, express, written consent of Company. Should any Indemnitor so
change its respective corporate or partnership status without the prior, express, written consent of the Company, Indemnitor
agrees that such change in its status shall not limit, reduce or otherwise shield its obligations, its partners' and/or officers'
obligations, to the Company which arise from this Agreement. The Indemnitors hereby expressly waive as against Company
any and all defenses which may arise from such a conversion to an LLC, LLP or similar status. Indemnitors acknowledge
that the Company relies upon the assets reflected in their financial statements in the issuance of insurance policies, and
agree not to dispose of or transfer said assets, except in the ordinary course of business, without the prior, express, written
consent of the Company.
Each Indemnitor who is an individual agrees to give the Company written notice of any change in his/her principal residence
within 30 days of the change of address. Each Indemnitor, that is not an individual, agrees not to change its principal place
of business or the state of jurisdiction in which it is incorporated or otherwise organized without also giving the Company
thirty (30) days prior written notice of the proposed change. If the Company has previously filed a Uniform Commercial Code
Financing Statement with respect to such Indemnitor, Indemnitor agrees that the Company may file a Financing Statement
in the new state or jurisdiction.
Indemnitors agree that, at any time, the Company may release any Indemnitor or Indemnitors from this Agreement, without
affecting, reducing or otherwise limiting the obligations of any remaining Indemnitor, and Indemnitors hereby expressly
waive both (a) notice from the Company of any such release, and (b) any defense that may be created in favor of any
remaining Indemnitor as a result of the Company's release of another Indemnitor.
This endorsement shall not increase the applicable Limits of Insurance shown in the Declarations, nor shall the
indemnification reinstate any limit of insurance.
CMI 6602 02 19 Page 2 of 4

Indemnitors acknowledge and agree that each has a material and beneficial interest in all insurance issued hereunder by
the Company and that each is authorized and empowered by their respective bylaws, charters, membership agreements,
or other organizational documents to execute, deliver and perform their obligations under this Agreement with respect to all
such insurance policies. Indemnitors further represent and warrant that they have obtained all internal corporate and/or
organizational approvals, consents and authorizations necessary to facilitate the execution, delivery and performance of
this Agreement, any amendments hereto, and any other agreement executed.
IN WITNESS WHEREOF, the Indemnitors, intending to be legally bound hereby, represent that they have read and
understood the foregoing provisions, that they freely and voluntarily enter into this Agreement, and they have below set their
hands and affixed their seals, as appropriate, this day of , 20
By signing below each individual executing this Agreement on behalf of a business, and each business entity
executing this Agreement on behalf of another business entity, represents and warrants that he, she or it is duly
authorized by Indemnitor to all of the terms and conditions of this Agreement.
Indemnitor: KCI Holdings, Inc
Address: 936 Ridgebrook Rd., Sparks, MD 21152
SSN/Tax ID No:
Authorized Representative:
Title:
e-mail:
(Signature)
WITNESS / NOTARY PUBLIC
(Seal)
(Signature)
Print Name:
My commissions expires:
CMI 6602 02 19 Page 3 of 4

ACKNOWLEDGMENT
Corporate Acknowledgment
STATE OF _
COUNTY OF
On this day of , 20 , before me, the undersigned, a Notary Public in and for the said State, personally
appeared (Name ), known by me (or proved to me on the basis of satisfactory evidence)
to be the person who is identified in and who executed the foregoing Indemnification Agreement, and who being by me duly
sworn, deposes and says that (s)he is the (Title), of (KCI Holdings, Inc), and that (s)he is duly authorized to
execute said Indemnification Agreement as the act and deed of said Corporation, and acknowledged to me that such
Corporation executed the within instrument pursuant to its by-laws or a resolution of its board of directors.
NOTARY PUBLIC
(Seal)
(Signature)
Print Name: _
My commissions
ALL OTHER TERMS AND CONDITIONS OF THE POLICY SHALL APPLY AND REMAIN UNCHANGED.
CMI 6602 02 19 Page 4 of 4

ENDORSEMENT
This endorsement forms a part of the policy to which it is attached. Please read it carefully.
WILMINGTON DISTRICT AMENDATORY ENDORSEMENT
COMPENSATORY MITIGATION INSURANCE POLICY
In consideration of the premium charged, and notwithstanding anything contained in this policy to the contrary, it is hereby
understood and agreed that the following changes apply:
Section II — DEFINITIONS, the following definition is added:
Umbrella Mitigation Banking Instrument means the legal document prepared, approved, filed, and documented in
compliance with applicable law for the Compensatory Mitigation Project(s) scheduled in the Declarations to the policy.
II. Section III — EXCLUSIONS, Item 1. is hereby deleted and replaced with the following:
1. Any act, event or conditions beyond the Sponsor's reasonable control and significantly adversely affects its abilityto
perform its obligations hereunder including: (i) acts of God, subject to the exceptions contained in Section XII.
Default and Closure, item B. of the Umbrella Mitigation Banking Instrument; lightning, earthquake, fire, landslide,
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.
Section VI — CONDITIONS, Item 4. RENEWAL, CANCELLATION AND TERMINATION, item (2) is hereby deleted and
replaced with the following:
(2) The Company may cancel the policy by mailing to the Named Insured at the last known address, and the
Authorizing Agency, written notice of not less than One Hundred and Twenty days (120) before such cancellation
shall be effective.
ALL OTHER TERMS AND CONDITIONS OF THE POLICY SHALL APPLY AND REMAIN UNCHANGED.
© 2020 by Berkley Environmental, an affiliate of Nautilus Insurance Company and Great Divide Insurance Company.
All rights reserved.
Page 1 of 1

13.6 DWR Stream Identification Forms and USACE Wetland Data Sheets
Mitigation Plan—112312020 Hair Sheep Stream Mitigation Bank

Mitigation Plan—112312020 Hair Sheep Stream Mitigation Bank

T1 top
NC DWQ Stream Identification Form Version 4.11
Date: 6/6/2018
Project/Site: Hair Sheep Creek
Latitude: 36.4892
Evaluator: J. Sullivan
County: Surry
Longitude: _80.7052
Total Points:
Stream Deter ' circle one)
Other
Stream is at least intermittent 21.25
Ephemeral ntermittent erennial
e.g. Quad Name:
if >_ 19 or perennial if >_ 30`
I
A. Geomorphology (Subtotal = 6 )
Absent
Weak
Moderate
Strong
1a. Continuity of channel bed and bank
0
1
2
3
2. Sinuosity of channel along thalweg
0
10
2
3
3. In -channel structure: ex. riffle -pool, step -pool,
ripple -pool sequence
0
1
2
3
4. Particle size of stream substrate
0
1
2
3
5. Active/relict floodplain
0
1
2
3
6. Depositional bars or benches
0
1
2
3
7. Recent alluvial deposits
0
1
2
3
8. Headcuts
0
1
2
3
9. Grade control
0
0.
1
1.5
10. Natural valley
0
0.5
1
1.5
11. Second or greater order channel
No = 0
Yes = 3
a artificial ditches are not rated; see discussions in manual
B. Hydrology (Subtotal = 10.5 )
12. Presence of Baseflow
0
1
02
3
13. Iron oxidizing bacteria
0
1
2
30
14. Leaf litter
0
1
0.5
0
15. Sediment on plants or debris
0
.5
1
1.5
16. Organic debris lines or piles
0
.5
1
1.5
17. Soil -based evidence of high water table?
No = 0
1,Y, es = 3
C. Biology (Subtotal = 4.75 )
18. Fibrous roots in streambed
3
2
01
0
19. Rooted upland plants in streambed
3
2
1
0
20. Macrobenthos (note diversity and abundance)
0
1
2
3
21. Aquatic Mollusks
0
1
2
3
22. Fish
0
0.5
1
1.5
23. Crayfish
0
0.5
1
1.5
24. Amphibians
0
0.5
1
1.5
25. Algae
0
0.51
1
1.5
26. Wetland plants in streambed
FAC = 0.75; OBL
= 1.5 Other = 0
'perennial streams may also be identified using other methods. See p. 35 of manual.
Notes:
Sketch:

T1 downstream
NC DWQ Stream Identification Form Version 4.11
Date: 6/6/2018
Project/Site: Hair Sheep Creek
Latitude: 36.4782
Evaluator: J. Sullivan
County: Surry
Longitude: _80.7037
Total Points:
Stream Determination (circle one)
Other
Stream is at least intermittent 31.5
Ephemeral Intermitten erennia
e.g. Quad Name:
if >_ 19 or perennial if >_ 30`
A. Geomorphology (Subtotal = 16.5 )
Absent
Weak
Moderate
Strong
1a. Continuity of channel bed and bank
0
1
2
C
2. Sinuosity of channel along thalweg
0
1
02
3
3. In -channel structure: ex. riffle -pool, step -pool,
ripple -pool sequence
0
1
2
3
4. Particle size of stream substrate
0
1
2
3
5. Active/relict floodplain
0
1
2
3
6. Depositional bars or benches
0
1
2
3
7. Recent alluvial deposits
0
1
2Q
3
8. Headcuts
0
1
2
3
9. Grade control
0
.5
1
1.5
10. Natural valley
0
0.5
CD
1.5
11. Second or greater order channel
No = 0
Yes = 3
a artificial ditches are not rated; see discussions in manual
B. Hydrology (Subtotal = 9 )
12. Presence of Baseflow
0
1
2
3
13. Iron oxidizing bacteria
0
1
2
0.5
3
0
14. Leaf litter
Q-0
1
15. Sediment on plants or debris
0
0.5
1
1.5
1.5
16. Organic debris lines or piles
0
0.5
1
17. Soil -based evidence of high water table?
QNo = 0
Yes = 3
C. Biology (Subtotal = 6
18. Fibrous roots in streambed
3
2
1
0
19. Rooted upland plants in streambed
3
2
1
0
20. Macrobenthos (note diversity and abundance)
0
1
2
3
21. Aquatic Mollusks
0
1
2
3
22. Fish
0
0.5
1
1.5
23. Crayfish
0
1 0.5
1
1 1.5
24. Amphibians
0
0.5
1
1.5
25. Algae
0
1 0.5
FACW = 0.75; OBL
1 1.5
= 1.5 they =�
26. Wetland plants in streambed
'perennial streams may also be identified using other methods. See p. 35 of manual.
Notes: Nothing found in net
Sketch:

T1-1
NC DWQ Stream Identification Form Version 4.11
Date: 6/6/2018
Project/Site: Hair Sheep Creek
Latitude: 36.4791
Evaluator: J. Sullivan
County: Surry
Longitude:-80.7050
Total Points:
Stream Deter ' circle one)
Other
Stream is at least intermittent 22 5
Ephemeral ntermittent Perennial
e.g. Quad Name:
if >_ 19 or perennial if >_ 30`
A. Geomorphology (Subtotal = 8 )
Absent
Weak
Moderate
Strong
1a. Continuity of channel bed and bank
0
1
2
3
2. Sinuosity of channel along thalweg
0
1
2
3
3. In -channel structure: ex. riffle -pool, step -pool,
ripple -pool sequence
O
1
2
3
4. Particle size of stream substrate
0
1
2
3
5. Active/relict floodplain
0
1
2
3
6. Depositional bars or benches
0
1
2
3
7. Recent alluvial deposits
0
1
2
3
8. Headcuts
0
1
2
3
9. Grade control
0
0.5
1
1.5
10. Natural valley
0
0.5
1
1.5
11. Second or greater order channel
No = 0
Yes = 3
a artificial ditches are not rated; see discussions in manual
B. Hydrology (Subtotal = 9.5 )
12. Presence of Baseflow
0
1
2
3
13. Iron oxidizing bacteria
0
1
2
3
14. Leaf litter
(1-55
1
0.5
0
15. Sediment on plants or debris
0
0.5
1
1.5
16. Organic debris lines or piles
0
0.5
1
1.5
17. Soil -based evidence of high water table?
No = 0
Yes = 3
C. Biology (Subtotal = 5
18. Fibrous roots in streambed
3
C_?p
1
0
19. Rooted upland plants in streambed
3
2
1
0
20. Macrobenthos (note diversity and abundance)
0
1
2
3
21. Aquatic Mollusks
0
1
2
3
22. Fish
0
0.5
1
1.5
23. Crayfish
0
0.5
1
1.5
24. Amphibians
0
0.5
1
1.5
25. Algae
0
0.5
1
1.5
26. Wetland plants in streambed
FACW = 0.75; OBL
= 1.5 Other = 0
'perennial streams may also be identified using other methods. See p. 35 of manual.
Notes: Nothin found in net
Sketch:

T2-1 Top
NC DWQ Stream Identification Form Version 4.11
Date: 11/16/18
Project/Site: Hair Sheep Creek
Latitude: 36.4775
Evaluator: Alex French
County: Surry
Longitude:-80.7077
Total Points:
circle one)
Stream Detertermi
Other
Stream is at least intermittent 24.5
Ephemeral ttent erennial
e.g. Quad Name:
if >_ 19 or perennial if >_ 30`
A. Geomorphology (Subtotal = 11 )
Absent
Weak
Moderate
Strong
1a. Continuity of channel bed and bank
0
1
2
3
2. Sinuosity of channel along thalweg
0
1
2
3
3. In -channel structure: ex. riffle -pool, step -pool,
ripple -pool sequence
0
1
2
3
4. Particle size of stream substrate
0
1
<=2
3
5. Active/relict floodplain
0
1
2
3
6. Depositional bars or benches
0
1
2
3
7. Recent alluvial deposits
C 0
1
2
3
8. Headcuts
0
1
2
3
9. Grade control
0
0.5
1
1.5
10. Natural valley
0
0.5
1
1.5
11. Second or greater order channel
( No = 0
Yes = 3
a artificial ditches are not rated; see discussions in manual
B. Hydrology (Subtotal = 7.5 )
12. Presence of Baseflow
0
1
2
3
13. Iron oxidizing bacteria
0
1
2
3
14. Leaf litter
1.5
1
0.5
0
15. Sediment on plants or debris
0
0.5
1
1.5
16. Organic debris lines or piles
0
1 0.5
1
1 1.5
17. Soil -based evidence of high water table?
No = 0
C-Yes = 3
C. Biology (Subtotal =
18. Fibrous roots in streambed
3
2
1
0
19. Rooted upland plants in streambed
C_3D
2
1
0
20. Macrobenthos (note diversity and abundance)
C
1
2
3
21. Aquatic Mollusks
0
1
2
3
22. Fish
0.5
1
1.5
23. Crayfish
0
0.5
1
1.5
24. Amphibians
0
0.5
1
1.5
25. Algae
0
0.5
1
1 1.5
26. Wetland plants in streambed
FACW = 0.75; OBL = 1.5 Other = 0
'perennial streams may also be identified using other methods. See p. 35 of manual.
Notes: Flowing but recent heavy rain. Previous visits had water but less flow. Many
leaves in channel
Sketch:

T2-1 Middle
NC DWQ Stream Identification Form Version 4.11
Date: 6/6/2018
Project/Site: Hair Sheep Creek
Latitude: 36.4774
Evaluator: J. Sullivan
County: Surry
Longitude:-80.7076
Total Points:
Stream Deter circle one)
Other
Stream is at least intermittent 21
Ephemeral ntermittent erennial
e.g. Quad Name:
if >_ 19 or perennial if >_ 30`
A. Geomorphology (Subtotal = 8.5 )
Absent
Weak
Moderate
Strong
1a. Continuity of channel bed and bank
0
1
2
3
2. Sinuosity of channel along thalweg
0
1
2
3
3. In -channel structure: ex. riffle -pool, step -pool,
ripple -pool sequence
0
1O
2
3
4. Particle size of stream substrate
0
2
3
5. Active/relict floodplain
0
1
2
3
6. Depositional bars or benches
CD
1
2
3
7. Recent alluvial deposits
0
1
2
3
8. Headcuts
0
2
3
9. Grade control
0
QL5
1
1.5
10. Natural valley
0
0.5
1
1.5
11. Second or greater order channel
No = 0
Yes = 3
a artificial ditches are not rated; see discussions in manual
B. Hydrology (Subtotal = 6.5 )
12. Presence of Baseflow
0
1
2
3
13. Iron oxidizing bacteria
0 j
1
2
3
14. Leaf litter
1
0.5
0
15. Sediment on plants or debris
0
.5
1
1.5
16. Organic debris lines or piles
0
0.5
1
1.5
17. Soil -based evidence of high water table?
No = 0
Yes = 3
C. Biology (Subtotal = 6
18. Fibrous roots in streambed
3)
2
1
0
19. Rooted upland plants in streambed
3
2
1
0
20. Macrobenthos (note diversity and abundance)
0
1
2
3
21. Aquatic Mollusks
1
2
3
22. Fish
0.5
1
1.5
23. Crayfish
0
0.5
1
1.5
24. Amphibians
0.5
1
1
1.5
25. Algae
0
0.5
1
1
1.5
26. Wetland plants in streambed
FACW = 0.75; OBL =
1C Other = 0
'perennial streams may also be identified using other methods. See p. 35 of manual.
Notes: No Biolo
Sketch:

T2-1
NC DWQ Stream Identification Form Version 4.11
Date: 6/6/2018
Project/Site: Hair Sheep Creek
Latitude: 36.4766
Evaluator: J. Sullivan
County: Surry
Longitude:-80.7077
Total Points:
Stream Determination (circ a
Other
Stream is at least intermittent 31
Ephemeral Intermittent erennia
e.g. Quad Name:
if >_ 19 or perennial if >_ 30`
I
A. Geomorphology (Subtotal = 14.5 )
Absent
Weak
Moderate
Strong
1a. Continuity of channel bed and bank
0
1
2
3
2. Sinuosity of channel along thalweg
0
1
2
3
3. In -channel structure: ex. riffle -pool, step -pool,
ripple -pool sequence
0
1
O
3
4. Particle size of stream substrate
0
1
CD
3
5. Active/relict floodplain
0
1
2
3
6. Depositional bars or benches
0
1
2
3
7. Recent alluvial deposits
0
1
2
3
8. Headcuts
0
1
2
3
9. Grade control
0
0.5
1
1.5
10. Natural valley
0
0.5
1
1.5
11. Second or greater order channel
No = 03
Yes = 3
a artificial ditches are not rated; see discussions in manual
B. Hydrology (Subtotal = 10.5 )
12. Presence of Baseflow
0
1
2
3
13. Iron oxidizing bacteria
0
1
2
3
14. Leaf litter
1.5
1
0.5
0
15. Sediment on plants or debris
0
0.5
1
1.5
16. Organic debris lines or piles
0
QL5
1
1.5
17. Soil -based evidence of high water table?
No = 0
1 Yes = 3
C. Biology (Subtotal = 6
18. Fibrous roots in streambed
3
2
1
0
19. Rooted upland plants in streambed
3
2
1
0
20. Macrobenthos (note diversity and abundance)
0
1
2
3
21. Aquatic Mollusks
0
1
2
3
22. Fish
0
0.5
1
1.5
23. Crayfish
0
0.5
1
1.5
24. Amphibians
0
0.5
1
1.5
25. Algae
0
0.5
1
1.5
26. Wetland plants in streambed
FACW = 0.75; OBL
= 1.5 Other = 0
'perennial streams may also be identified using other methods. See p. 35 of manual.
Notes: No Bioloay
Sketch:

T2-2
NC DWQ Stream Identification Form Version 4.11
Date: 6/6/2018
Project/Site: Hair Sheep Creek
Latitude: 36.4770
Evaluator: J. Sullivan
County: Surry
Longitude:-80.7074
Total Points:
Stream Deter ' n (circle one)
Other
Stream is at least intermittent 27.5
Ephemera Intermitten Perennial
e.g. Quad Name:
if >_ 19 or perennial if >_ 30`
A. Geomorphology (Subtotal = 13.5 )
Absent
Weak
Moderate
Strong
1a. Continuity of channel bed and bank
0
1
2
3
2. Sinuosity of channel along thalweg
0
1
2
3
3. In -channel structure: ex. riffle -pool, step -pool,
ripple -pool sequence
0
1
2
3
4. Particle size of stream substrate
0
1
2
2
3
3
5. Active/relict floodplain
0
1
6. Depositional bars or benches
0
1
2
3
7. Recent alluvial deposits
0
1
2
3
8. Headcuts
0
1
2
3
9. Grade control
0
0.5
1
1.5
10. Natural valley
0
0.5
1
1.5
11. Second or greater order channel
No = 03
Yes = 3
a artificial ditches are not rated; see discussions in manual
B. Hvdroloav (Subtotal = 8 )
12. Presence of Baseflow
0
1
2
3
13. Iron oxidizing bacteria
0
1
2
3
14. Leaf litter
1.5)
1
0.5
0
15. Sediment on plants or debris
0
0.5
1
1.5
16. Organic debris lines or piles
0
0.5
1
1.5
17. Soil -based evidence of high water table?
No = 0
Yes = 3
C. Biology (Subtotal =
18. Fibrous roots in streambed
3
2
1
0
19. Rooted upland plants in streambed
3
2
1
0
20. Macrobenthos (note diversity and abundance)
0
1
2
3
21. Aquatic Mollusks
0
1
2
3
22. Fish
0
0.5
1
1.5
23. Crayfish
0
0.5
1
1.5
24. Amphibians
0
0.5
1
1.5
25. Algae
0
0.5
1
1.5
26. Wetland plants in streambed
FACW = 0.75; OBL
= 1.5 Other = 0
'perennial streams may also be identified using other methods. See p. 35 of manual.
Notes: No Bioloay
Sketch:

T2
NC DWQ Stream Identification Form Version 4.11
Date: 6/6/2018
Project/Site: Hair Sheep Creek
Latitude: 36.4732
Evaluator: J. Sullivan
county: Surry
Longitude: _80.7067
Total Points:
Stream Determination (cirwamaw
Other
Stream is at least intermittent 36
Ephemeral Intermitten Perennial
e.g. Quad Name:
if >_ 19 or perennial if >_ 30`
A. Geomorphology (Subtotal = 17.5 )
Absent
Weak
Moderate
Strong
1a. Continuity of channel bed and bank
0
1
2
3
2. Sinuosity of channel along thalweg
0
1
2
3
3. In -channel structure: ex. riffle -pool, step -pool,
ripple -pool sequence
0
1
O
3
4. Particle size of stream substrate
0
1
2
C
5. Active/relict floodplain
0
1
2
3
6. Depositional bars or benches
0
1
20
3
7. Recent alluvial deposits
0
1
1
20
2
3
3
8. Headcuts
0
9. Grade control
0
0.5
1
1.5
10. Natural valley
0 0.5
No = 0 >
1
1.5
11. Second or greater order channel
Yes = 3
a artificial ditches are not rated; see discussions in manual
B. Hydrology (Subtotal = 11 )
12. Presence of Baseflow
0
1
2
3
13. Iron oxidizing bacteria
0
1
2
3
14. Leaf litter
1.5
1
0.5
0
15. Sediment on plants or debris
0
0.5
1
1.5
16. Organic debris lines or piles
0
0.5
U
1.5
17. Soil -based evidence of high water table?
No = 0
es = 3
C. Biology (Subtotal = 7.5 )
18. Fibrous roots in streambed
3
2
1
0
19. Rooted upland plants in streambed
3
2
1
0
20. Macrobenthos (note diversity and abundance)
0
1
2
3
21. Aquatic Mollusks
QO
1
2
3
22. Fish
0
CO.5D
1
1.5
23. Crayfish
0
0.5
1
1.5
24. Amphibians
CD
0.5
1
1.5
25. Algae
0
0.5
1
1 1.5
26. Wetland plants in streambed
FACW = 0.75; OBL
= 1.5 ther = 0
'perennial streams may also be identified using other methods. See p. 35 of manual.
Notes: Many Gambusia 3 damselflies
Sketch:

WB wet
WETLAND DETERMINATION DATA FORM — Eastern Mountains and Piedmont Region
Project/Site: Hair Sheep Creek City/County: Surry Sampling Date: 6/6/18
Applicant/Owner: KCI State: NC Sampling Point: WB wet
Investigator(s): J. Sullivan Section, Township, Range:
Landform (hillslope, terrace, etc.): Floodplaln Local relief (concave, convex, none): Concave Slope (%): 1 %
Subregion (LRR or MLRA): P-136 Lat: 36.4754 Long:-80.7059 Datum: NAD83
Soil Map Unit Name: Fairview Sandy Clay loam NWI classification: PEM
Are climatic / hydrologic conditions on the site typical for this time of year? Yes X No (If no, explain in Remarks.)
Are Vegetation x , Soil or Hydrology significantly disturbed? Are "Normal Circumstances" present? Yes X No
Are Vegetation , Soil or Hydrology naturally problematic? (If needed, explain any answers in Remarks.)
SUMMARY OF FINDINGS — Attach site map showing sampling point locations, transects, important features, etc.
Hydrophytic Vegetation Present? Yes x No
Is the Sampled Area
Hydric Soil Present? Yes x No within a Wetland? Yes X No
Wetland Hydrology Present? Yes X No
Remarks
HYDROLOGY
Wetland Hydrology Indicators:
Secondary Indicators (minimum of two required)
Primary Indicators (minimum of one is required: check all that apply)
_ Surface Soil Cracks (136)
Surface Water (Al) _
True Aquatic Plants (B14)
_ Sparsely Vegetated Concave Surface (138)
High Water Table (A2) _
Hydrogen Sulfide Odor (Cl)
_ Drainage Patterns (1310)
_ Saturation (A3) x
Oxidized Rhizospheres on Living Roots (C3)
_ Moss Trim Lines (B16)
_ Water Marks (131) _
Presence of Reduced Iron (C4)
_ Dry -Season Water Table (C2)
_ Sediment Deposits (132) _
Recent Iron Reduction in Tilled Soils (C6)
_ Crayfish Burrows (C8)
Drift Deposits (133) _
Thin Muck Surface (C7)
_ Saturation Visible on Aerial Imagery (C9)
Algal Mat or Crust (134) _
Other (Explain in Remarks)
_ Stunted or Stressed Plants (D1)
Iron Deposits (135)
x Geomorphic Position (D2)
_ Inundation Visible on Aerial Imagery (137)
_ Shallow Aquitard (D3)
_ Water -Stained Leaves (139)
_ Microtopographic Relief (D4)
Aquatic Fauna (1313)
FAC-Neutral Test (D5)
Field Observations:
Surface Water Present? Yes No x
Depth (inches): -
Water Table Present? Yes No x
Depth (inches): -
Saturation Present? Yes No x
Depth (inches): -
Wetland Hydrology Present? Yes X No
(includes capillary fringe)
Describe Recorded Data (stream gauge, monitoring well, aerial photos, previous inspections), if available:
Remarks:
US Army Corps of Engineers Eastern Mountains and Piedmont — Version 2.0

VEGETATION (Four Strata) - Use scientific names of plants.
Sampling Point: WB wet
Absolute Dominant Indicator
Dominance Test worksheet:
Tree Stratum (Plot size: 30' )
% Cover Species? Status
Number of Dominant Species
1. none
That Are OBL, FACW, or FAC: 3 (A)
2.
Total Number of Dominant
3.
Species Across All Strata: 4 (B)
4.
5
Percent of Dominant Species
75%
That Are OBL, FACW, or FAC: (A/B)
6.
Prevalence Index worksheet:
7
= Total Cover
Total % Cover of: Multiply by:
50% of total cover:
20% of total cover:
OBL species x 1 =
Sapling/Shrub Stratum (Plot size: 15'
)
FACW species x 2 =
1. Rosa multiflora
5 X FACU
FAC species x 3 =
2
FACU species x 4 =
3
UPL species x 5 =
4
Column Totals: (A) (B)
5.
Prevalence Index = B/A =
6.
Hydrophytic Vegetation Indicators:
7.
- 1 - Rapid Test for Hydrophytic Vegetation
8.
X 2 -Dominance Test is >50%
9.
5
_ 3 - Prevalence Index is <-3.0'
= Total Cover
1
- 4 - Morphological Adaptations' (Provide supporting
50% of total cover:
2.5 20% of total cover:
Herb Stratum 5�
data in Remarks or on a separate sheet)
(Plot size: )
Problematic Hydrophytic Vegetation' (Explain)
1. Juncus effusus
50 X FACW
-
2. Carex sp.
30 X FACW
3. POI gonum sag gittatum
�/- g-
15 OBL
Indicators of hydric soil and wetland hydrology must
be present, unless disturbed or problematic.
4. Cocula maculata
5 OBL
Definitions of Four Vegetation Strata:
5.
6
Tree - Woody plants, excluding vines, 3 in. (7.6 cm) or
more in diameter at breast height (DBH), regardless of
7.
height.
8.
Sapling/Shrub - Woody plants, excluding vines, less
9.
than 3 in. DBH and greater than or equal to 3.28 ft (1
10.
m) tall.
11.
Herb - All herbaceous (non -woody) plants, regardless
100 = Total Cover
of size, and woody plants less than 3.28 ft tall.
50% of total cover:
50 20% of total cover: 20
30'
Woody vine - All woody vines greater than 3.28 ft in
Woody Vine Stratum (Plot size: )
height.
1. Lonicera japonica
5 X FAC
2.
3.
4.
Hydrophytic
5.
Vegetation
5 = Total Cover
Present? Yes X No
50% of total cover:
2.5 20% of total cover: 1
Remarks: (Include photo numbers here or on a separate sheet.)
US Army Corps of Engineers Eastern Mountains and Piedmont - Version 2.0

SOIL Sampling Point: WB wet
Profile Description: (Describe to the depth needed to document the indicator or confirm the absence of indicators.)
Depth Matrix
Redox Features
(inches) Color (moist) %
Color (moist) % Type Loc
Texture Remarks
0-2 10YR 4/2 100
L
2-6 10YR 5/2 90
7.5YR 4/6 10 C PL
SCL gravel
6-12 10YR 5/2 80
7.5YR 4/6 20 C PL—
SCL aravel
12-18+ 10YR 4/1 70
SCL mica
10YR 5/4 30
mica
'Type: C=Concentration, D=Depletion, RM=Reduced Matrix, MS=Masked Sand Grains.
2Location: PL=Pore Lining, M=Matrix.
Hydric Soil Indicators:
Indicators for Problematic Hydric Soils3:
Histosol (Al)
_ Dark Surface (S7)
_ 2 cm Muck (A10) (MLRA 147)
_ Histic Epipedon (A2)
_ Polyvalue Below Surface (S8) (MLRA 147, 148) _ Coast Prairie Redox (A16)
_ Black Histic (A3)
_ Thin Dark Surface (S9) (MLRA 147, 148)
(MLRA 147, 148)
Hydrogen Sulfide (A4)
_ Loamy Gleyed Matrix (F2)
_ Piedmont Floodplain Soils (F19)
_ Stratified Layers (A5)
X Depleted Matrix (F3)
(MLRA 136, 147)
_ 2 cm Muck (A10) (LRR N)
_ Redox Dark Surface (F6)
_ Very Shallow Dark Surface (TF12)
Depleted Below Dark Surface (A11)
_ Depleted Dark Surface (F7)
_ Other (Explain in Remarks)
_ Thick Dark Surface (Al2)
_ Redox Depressions (F8)
_ Sandy Mucky Mineral (S1) (LRR N,
_ Iron -Manganese Masses (F12) (LRR N,
MLRA 147, 148)
MLRA 136)
_ Sandy Gleyed Matrix (S4)
_ Umbric Surface (F13) (MLRA 136, 122)
3Indicators of hydrophytic vegetation and
_ Sandy Redox (S5)
_ Piedmont Floodplain Soils (F19) (MLRA 148) wetland hydrology must be present,
_ Stripped Matrix (S6)
_ Red Parent Material (F21) (MLRA 127, 147)
unless disturbed or problematic.
Restrictive Layer (if observed):
Type:
Depth (inches):
Hydric Soil Present? Yes x No
Remarks
US Army Corps of Engineers Eastern Mountains and Piedmont — Version 2.0

WETLAND DETERMINATION DATA FORM — Eastern Mountains and Piedmont Region
Project/Site: Hair Sheep Creek City/County: SUrry Sampling Date: 6/6/18
Applicant/Owner: KCI State: NC Sampling Point: WB Up
Investigator(s): J. Sullivan Section, Township, Range:
Landform (hillslope, terrace, etc.): hlllslope Local relief (concave, convex, none): none Slope (%): 5%
Subregion (LRR or MLRA): P-136 Lat: 36.4757 Long:-80.7058 Datum: NAD 83
Soil Map Unit Name: Fairview sandy Clay loam NWI classification: -
Are climatic / hydrologic conditions on the site typical for this time of year? Yes X No (If no, explain in Remarks.)
Are Vegetation X , Soil or Hydrology significantly disturbed? Are "Normal Circumstances" present? Yes X No
Are Vegetation , Soil or Hydrology naturally problematic? (If needed, explain any answers in Remarks.)
SUMMARY OF FINDINGS — Attach site map showing sampling point locations, transects, important features, etc.
Hydrophytic Vegetation Present? Yes No X
Is the Sampled Area
Hydric Soil Present? Yes No X within a Wetland? Yes No X
Wetland Hydrology Present? Yes No X
Remarks:
Cattle Pasture
HYDROLOGY
Wetland Hydrology Indicators:
Secondary Indicators (minimum of two required)
Primary Indicators (minimum of one is required: check all that apply)
_ Surface Soil Cracks (136)
Surface Water (Al) _
True Aquatic Plants (B14)
_ Sparsely Vegetated Concave Surface (138)
High Water Table (A2) _
Hydrogen Sulfide Odor (Cl)
_ Drainage Patterns (1310)
_ Saturation (A3) _
Oxidized Rhizospheres on Living Roots (C3)
_ Moss Trim Lines (B16)
_ Water Marks (131) _
Presence of Reduced Iron (C4)
_ Dry -Season Water Table (C2)
_ Sediment Deposits (132) _
Recent Iron Reduction in Tilled Soils (C6)
_ Crayfish Burrows (C8)
Drift Deposits (133) _
Thin Muck Surface (C7)
_ Saturation Visible on Aerial Imagery (C9)
Algal Mat or Crust (134) _
Other (Explain in Remarks)
_ Stunted or Stressed Plants (D1)
Iron Deposits (135)
_ Geomorphic Position (D2)
_ Inundation Visible on Aerial Imagery (137)
_ Shallow Aquitard (D3)
_ Water -Stained Leaves (139)
_ Microtopographic Relief (D4)
Aquatic Fauna (1313)
_ FAC-Neutral Test (D5)
Field Observations:
Surface Water Present? Yes No X
Depth (inches): -
Water Table Present? Yes No X
Depth (inches): -
Saturation Present? Yes No X
Depth (inches): -
Wetland Hydrology Present? Yes No X
(includes capillary fringe)
Describe Recorded Data (stream gauge, monitoring well, aerial photos, previous inspections), if available:
Remarks:
US Army Corps of Engineers Eastern Mountains and Piedmont — Version 2.0

VEGETATION (Four Strata) - Use scientific names of plants. Sampling Point: WB up
Absolute Dominant Indicator
Dominance Test worksheet:
Tree Stratum (Plot size: 30' )
% Cover Species? Status
Number of Dominant Species
1. none
That Are OBL, FACW, or FAC: 0 (A)
2.
Total Number of Dominant
3.
Species Across All Strata: 1 (B)
4.
Percent of Dominant Species
5.
That Are OBL, FACW, or FAC: 0% (A/B)
6.
Prevalence Index worksheet:
7
= Total Cover
Total % Cover of: Multiply by:
50% of total cover:
20% of total cover:
OBL species x 1 =
Sapling/Shrub Stratum (Plot size: 1 5' )
FACW species x 2 =
1. none
FAC species x 3 =
2
FACU species x 4 =
3
UPL species x 5 =
4
Column Totals: (A) (B)
5.
Prevalence Index = B/A =
6.
Hydrophytic Vegetation Indicators:
7.
1 - Rapid Test for Hydrophytic Vegetation
8.
_ 2 -Dominance Test is >50%
9.
_ 3 - Prevalence Index is <-3.0'
= Total Cover
4 - Morphological Adaptations' (Provide supporting
50% of total cover:
20% of total cover:
5'
data in Remarks or on a separate sheet)
Herb Stratum (Plot size: )
FACU
Problematic Hydrophytic Vegetation' (Explain)
1. Schedonorous arindinaceus
95 X
-
2. Trifolium sp.
5 FACU
'Indicators of hydric soil and wetland hydrology must
3.
be present, unless disturbed or problematic.
4.
Definitions of Four Vegetation Strata:
5.
6
Tree - Woody plants, excluding vines, 3 in. (7.6 cm) or
more in diameter at breast height (DBH), regardless of
7.
height.
8.
Sapling/Shrub - Woody plants, excluding vines, less
9.
than 3 in. DBH and greater than or equal to 3.28 ft (1
10.
m) tall.
11.
Herb - All herbaceous (non -woody) plants, regardless
100 = Total Cover
of size, and woody plants less than 3.28 ft tall.
50% of total cover: 50
20% of total cover: 20
30'
Woody vine - All woody vines greater than 3.28 ft in
Woody Vine Stratum (Plot size: )
hei ht.
1. none
2.
3.
4.
Hydrophytic
5.
Vegetation
= Total Cover
Present? Yes No X
50% of total cover:
20% of total cover:
Remarks: (Include photo numbers here or on a separate sheet.)
US Army Corps of Engineers Eastern Mountains and Piedmont - Version 2.0

SOIL Sampling Point: WB up
Profile Description: (Describe to the depth needed to document the indicator or confirm the absence of indicators.)
Depth Matrix
Redox Features
(inches) Color (moist) %
Color (moist) % Type Loc
Texture Remarks
0.2 10YR 4/3 100
SL
2-5 10YR 5/3 100
SL
5-18+ 7.5YR 5/8 100
SCL
'Type: C=Concentration, D=Depletion, RM=Reduced Matrix, MS=Masked Sand Grains.
2Location: PL=Pore Lining, M=Matrix.
Hydric Soil Indicators:
Indicators for Problematic Hydric Soils3:
Histosol (Al)
_ Dark Surface (S7)
_ 2 cm Muck (A10) (MLRA 147)
_ Histic Epipedon (A2)
_ Polyvalue Below Surface (S8) (MLRA 147, 148) _ Coast Prairie Redox (A16)
_ Black Histic (A3)
_ Thin Dark Surface (S9) (MLRA 147, 148)
(MLRA 147, 148)
Hydrogen Sulfide (A4)
_ Loamy Gleyed Matrix (F2)
_ Piedmont Floodplain Soils (F19)
_ Stratified Layers (A5)
_ Depleted Matrix (F3)
(MLRA 136, 147)
_ 2 cm Muck (A10) (LRR N)
_ Redox Dark Surface (F6)
_ Very Shallow Dark Surface (TF12)
Depleted Below Dark Surface (A11)
_ Depleted Dark Surface (F7)
_ Other (Explain in Remarks)
_ Thick Dark Surface (Al2)
_ Redox Depressions (F8)
_ Sandy Mucky Mineral (S1) (LRR N,
_ Iron -Manganese Masses (F12) (LRR N,
MLRA 147, 148)
MLRA 136)
_ Sandy Gleyed Matrix (S4)
_ Umbric Surface (F13) (MLRA 136, 122)
3Indicators of hydrophytic vegetation and
_ Sandy Redox (S5)
_ Piedmont Floodplain Soils (F19) (MLRA 148) wetland hydrology must be present,
_ Stripped Matrix (S6)
_ Red Parent Material (F21) (MLRA 127, 147)
unless disturbed or problematic.
Restrictive Layer (if observed):
Type:
Depth (inches):
Hydric Soil Present? Yes No X
Remarks
US Army Corps of Engineers Eastern Mountains and Piedmont — Version 2.0

13.7 Approved Jurisdictional Determination
Mitigation Plan—112312020 Hair Sheep Stream Mitigation Bank

Mitigation Plan—112312020 Hair Sheep Stream Mitigation Bank

U.S. ARMY CORPS OF ENGINEERS
WILMINGTON DISTRICT
Action ID: SAW-2018-00712 County: 5. RM U.S.G.S. Quad: Dobson
NOTIFICATION OF JURISDICTIONAL DETERMINATION
Property Owner: Joe Sullivan KCI Technologies Inc.
Address: 4505 Falls of Neuse Rd. Suite 400
Raleigh, NC 27609
Telephone Number: 919-278-2533
Size (acres): 11.4 acres Nearest Town: Mt Airy
Nearest Waterway: Cooks Creek Coordinates: 36.4782,-80.7039
River Basin/ HUC: Upper Yadldn
Location description: The project is located at Haystack Road north and south of US 74 near Mt Airy, NC
Indicate Which of the Following Apply:
A. Preliminary Determination
X There are waters, including wetlands, on the above described project area, that may be subject to Section 404 of the
CIean Water Act (CWA)(33 USC § 1344) and/or Section 10 of the Rivers and Harbors Act (RHA) (33 USC § 403). The
waters, including wetlands, have been delineated, and the delineation has been verified by the Corps to be sufficiently
accurate and reliable. Therefore this preliminary jurisdiction determination may be used in the permit evaluation process,
including determining compensatory mitigation. For purposes of computation of impacts, compensatory mitigation
requirements, and other resource protection measures, a permit decision made on the basis of a preliminary JD will treat
all waters and wetlands that would be affected in any way by the permitted activity on the site as if they are jurisdictional
waters of the U.S. This preliminary determination is not an appealable action under the Regulatory Program
Administrative Appeal Process (Reference 33 CFR Part 331). However, you may request an approved JD, which is an
appealable action, by contacting the Corps district for further instruction.
There are wetlands on the above described property, that may be subject to Section 404 of the Clean Water Act
(CWA)(33 USC § 1344) and/or Section 10 of the Rivers and Harbors Act (RHA) (33 USC § 403). However, since the
waters, including wetlands, have not been properly delineated, this preliminary jurisdiction determination may not be
used in the permit evaluation process. Without a verified wetland delineation, this preliminary determination is merely
an effective presumption of CWATRHA jurisdiction overall of the waters, including wetlands, at the project area,
which is not sufficiently accurate and reliable to support an enforceable permit decision. We recommend that you have
the waters of the U.S. on your property delineated. As the Corps may not be able to accomplish this wetland
delineation in a timely manner, you may wish to obtain a consultant to conduct a delineation that can be verified by the
Corps.
B. Approved Determination
There are Navigable Waters of the United States within the above described property subject to the permit requirements
of Section 10 of the Rivers and Harbors Act (RHA) (33 USG § 403) and Section 404 of the Clean Water Act (CWA)(33
USC § 1344). Unless there is a change in the law or our published regulations, this determination may be relied upon for
a period not to exceed five years from the date of this notification.
_ There are waters of the U.S. including wetlands on the above described property subject to the permit requirements of
Section 404 of the Clean Water Act (CWA)(33 USC § 1344). Unless there is a change in the law or our published
regulations, this determination may be relied upon for a period not to exceed five years fiom the date of this notification.
We recommend you have the waters of the U.S. on your property delineated. As the Corps may not be able to
accomplish this wetland delineation in a timely manner, you may wish to obtain a consultant to conduct a delineation
that can be verified by the Corps.
_ The waters of the U,S. including wetlands on your project area have been delineated and the delineation has been
verified by the Corps. If you wish to have the delineation surveyed, the Corps can review and verify the survey upon
completion. Once verified, this survey will provide an accurate depiction of all areas subject to CWA and/or RHA.
jurisdiction on your property which, provided there is no change in the law or our published regulations, may be relied
upon for a period not to exceed five years.

_ The waters of the U.S. including wetlands have been delineated and surveyed and are accurately depicted on the plat
signed by the Corps Regulatory Official identified below on . Unless there is a change in the law or our published
regulations, this determination may be relied upon for a period not to exceed five years from the date of this notification.
There are no waters of the U.S., to include wetlands, present on the above described project area which are subject to the
permit requirements of Section 404 of the Clean Water Act (33 USC 1344). Unless there is a change in the law or our
published regulations, this determination may be relied upon for a period not to exceed five years from the date of this
notification.
The property is located in one of the 20 Coastal Counties subject to regulation under the Coastal Area Management Act
(CAMA). You should contact the Division of Coastal Management to determine their requirements.
PIacement of dredged or fill material within waters of the US and/or wetlands without a Department of the Army permit may
constitute a violation of Section 301 of the Clean Water Act (33 USC § 1311). Placement of dredged or fill material,
construction or placement of structures, or work within navigable waters of the United States without a Department of the
Army permit may constitute a violation of Sections 9 and/or 10 of the Rivers and Harbors Act (33 USC § 401 and/or 403), If
you have any questions regarding.this determination and/or the Corps regulatory program, please contact William Elliott at
828-271-7980, ext. 4225 or [e-mail].
C. Basis for Determination:
See attached preliminary jurisdictional determination form.
The site contains wetlands as determined by the 1987 Corps of Engineers Wetland Delineation Manual and the
Regional Supplement to the Corps of Engineers Wetlands Delineation Manual: Eastern Mountain and Piedmont
Region (version 2.0). These wetlands are adjacent to stream channels located on the property that exhibit indicators
of ordinary high water marks. The stream channel on the property "is known as" Cooks Creek and there are
unnamed tributaries (UT) to" Cooks Creek.
D. Remarks:
The potential waters of the U.S., at this site, were verified on -site by the Corps on July 25, 2018 and are as
approximately depicted on the attached Potential Wetland/Waters Map (figure 3).
E. Attention USDA Program Participants
This delineation/determination has been conducted to identify the limits of Corps' Clean Water Act jurisdiction for the
particular site identified in this request. The delineation/determination may not be valid for the wetland conservation
provisions of the Food Security Act of 1985. If you or your tenant are USDA Program participants, or anticipate
participation in USDA programs, you should request a certified wetland determination from the local office of the
Natural Resources Conservation Service, prior to starting work.
F. Appeals Information (This information applies only to approved jurisdictional determinations as indicated in
B. above)
This correspondence constitutes an approved jurisdictional determination for the above described site. If you object to
this determination, you may request an administrative appeal under Corps regulations at 33 CFR Part 331. Enclosed you
will find a Notification of Appeal Process (NAP) fact sheet and request for appeal (RFA) form. If you request to appeal
this determination you must submit a completed RFA form to the following address:
US Army Corps of Engineers
South Atlantic Division
Attn: Jason Steele, Review Officer
60 Forsyth Street SW, Room 10M15
Atlanta, Georgia 30303-8801
In order for an RFA to be accepted by the Corps, the Corps must determine that it is complete, that it meets the criteria
for appeal under 33 CFR part 331.5, and that it has been received by the Division Office within 60 days of the date of the
NAP. Should you decide to submit an RFA form, it must be received at the above address by NIA (Preliminary -JD).

**It is not necessary to submit an RFA form to the Division O e ify a do not object to the detenmination in this
correspondence.*
Corps Regulatory Official: 240z"t
William Elliott
Issue Date of JD: Nov 20, 2018 Expiration Date: NIA Preliminary JD
The Wilmington District is committed to providing the highest level of support to the public. To help us ensure
we continue to do so, please complete our Customer Satisfaction Survey, located online at
http://corpsmapu.usace.army.mil/em a ex/f`?=136:4:0.
Copy furnished:
Robert and Treva Smith Jr., 2240 Maple Grove Church Road, Lowgap, NC 27024

NOTIFICATION OF ADMINISTRATIVE APPEAL OPTIONS AND PROCESS AND
REQUEST FOR APPEAL
Applicant: Joe Sullivan, KCI Technologies Inc. File Number: SAW-SAW-2018-00712
I Date: Nov 20, 2018
Attached is:
See Section below
❑
INITIAL PROFFERED PERMIT (Standard Permit or Letter of permission)
A
❑
PROFFERED PERMIT (Standard Permit or Letter of permission)
B
❑
PERMIT DENIAL
C
❑
APPROVED JURISDICTIONAL DETERMINATION
D
®
PRELIMINARY JURISDICTIONAL DETERMINATION
E
SECTION I - The following identifies your rights and options regarding an administrative appeal of the above decision.
Additional information may be found at http://www.usace.army.nil/Missions/CivilWorks/RegulatoryProgramandPennits.aspx or
Corps regulations at 33 CFR Part 331.
A: INITIAL PROFFERED PERMIT: You may accept or object to the permit.
• ACCEPT: If you received a Standard Permit, you may sign the permit document and return it to the district engineer for final
authorization. If you received a Letter of Permission (LOP), you may accept the LOP and your work is authorized. Your signature
on the Standard Permit or acceptance of the LOP means that you accept the permit in its entirety, and waive all rights to appeal the
permit, including its terms and conditions, and approved jurisdictional determinations associated with the permit.
• OBJECT: If you object to the permit (Standard or LOP) because of certain terms and conditions therein, you may request that the
permit be modified accordingly. You must complete Section lI of this form and return the form to the district engineer. Your
obi ections must be received by the district engineer within 60 days of the date of this notice, or you will forfeit your right to appeal
the permit in the fixture. Upon receipt of your letter, the district engineer will evaluate your objections and may: (a) modify the
permit to address all of your concerns, (b) modify the permit to address some of your objections, or (c) not modify the permit
having determined that the permit should be issued as previously written. After evaluating your objections, the district engineer
will send you a proffered permit for your reconsideration, as indicated in Section B below.
B: PROFFERED PERMIT: You may accept or appeal the permit
• ACCEPT: If you received a Standard Permit, you may sign the permit document and return it to the district engineer for final
authorization. If you received a Letter of Permission (LOP), you may accept the LOP and your work is authorized. Your signature
on the Standard Permit or acceptance of the LOP means that you accept the permit in its entirety, and waive all rights to appeal the
permit, including its terms and conditions, and approved jurisdictional determinations associated with the pei Init.
• APPEAL: If you choose to decline the proffered permit (Standard or LOP) because of certain terms and conditions therein, you
may appeal the declined permit under the Corps of Engineers Administrative Appeal Process by completing Section II of this form
and sending the form to the division engineer. This form must be received by the division engineer within 60 days of the date of
this notice.
C.: PERMIT DENIAL: You may appeal the denial of a permit under the Corps of Engineers Administrative Appeal Process by
completing Section II of this form and sending the form to the division engineer. This form must be received by the division engineer
within 60 days of the date of this notice.
D: APPROVED JURISDICTIONAL DETERMINATION: You may accept or appeal the approved JD or provide new information.
• ACCEPT: You do not need to notify the Corps to accept an approved JD. Failure to notify the Corps within 60 days of the date of
this notice, means that you accept the approved JD in its entirety, and waive all rights to appeal the approved JD.
• APPEAL: If you disagree with the approved JD, you may appeal the approved JD under the Corps of Engineers Administrative
Appeal Process by completing Section II of this form and sending the form to the district engineer. This form must be received by
the division engineer within 60 days of the date of this notice.
E: PRELIMINARY JURISDICTIONAL DETERMINATION: You do not need to respond to the Corps regarding the preliminary JD.
The Preliminary JD is not appealable. If you wish, you may request an approved JD (which may be appealed), by contacting the Corps
district for further instruction. Also you may provide new information for further consideration by the Corps to reevaluate the JD.

SECTION II - REQUEST FOR APPEAL or OBJECTIONS TO AN INITIAL, PROFFERED PERMIT
REASONS FOR APPEAL OR OBJECTIONS: (Describe your reasons for appealing the decision or your objections to an initial
proffered permit in clear concise statements. You may attach additional information to this form to clarify where your reasons or
objections are addressed in the administrative record.)
ADDITIONAL INFORMATION: The appeal is limited to a review of the administrative record, the Corps memorandum for the record
of the appeal conference or meeting, and any supplemental information that the review officer has determined is needed to clarify the
administrative record. Neither the appellant nor the Corps may add new information or analyses to the record. However, you may
provide additional information to clarify the location of information that is already in the administrative record.
POINT OF CONTACT FOR QUESTIONS OR. INFORMATION:
If you have questions regarding this decision and/or the
If you only have questions regarding the appeal process you may
appeal process you may contact:
also contact:
District Engineer, Wilmington Regulatory Division,
Mr. Jason Steele, Administrative Appeal Review Officer
Attn: William Elliott
CESAD-PDO
151 Patton Avenue, Room 208
U.S. Army Corps of Engineers, South Atlantic Division
Asheville, North Carolina 28801-5006
60 Forsyth Street, Room 10MIS
828-271-7980, ext. 4232
Atlanta, Georgia 30303-8801
Phone: [phone]
RIGHT OF ENTRY: Your signature below grants the right of entry to Corps of Engineers personnel, and any government
consultants, to conduct investigations of the project site during the course of the appeal process. You will be provided a 15 day
notice of any site investigation, and will have the opportunity to participate in all site investigations.
Date:
Telephone number:
Signature of appellant or agent.
For appeals on Initial Proffered Permits send this form to:
District Engineer, Wilmington Regulatory Division, Attn.: William Elliott, 69 Darlington Avenue, Wilmington,
North Carolina 28403
For Permit denials, Proffered Permits and approved Jurisdictional Determinations send this form to:
Division Engineer, Commander, U.S. Army Engineer Division, South Atlantic, Attn: Mr. Jason Steele,
Administrative Appeal Officer, CESAD-PDO, 60 Forsyth Street, Room 10M1.5, Atlanta, Georgia 30303-8801
Phone: [phone]

PRELIMINARY JURISDICTIONAL DETERMINATION (JD) FORM
U.S. Army Corps of Engineers
BACKGROUND INFORMATION
A. REPORT COMPLETION DATE FOR PRELIMINARY JD: Nov 20, 2018
B. NAME AND ADDRESS OF PERSON REQUESTING PRELIMINARY JD:
Joe Sullivan, KCI Technologies Inc.
4505 Falls of Neuse Rd. Suite 400
Raleigh, NC 27609
C. DISTRICT OFFICE, FILE NAME, AND NUMBER:
CESAW-RG-A, SAW-2018-00712,
D. PROJECT LOCATION(S) AND BACKGROUND INFORMATION:
The project is located at Haystack Road north and south of US 74 near Mt Airy, NC
State: NC County/parish borough: Surry City: Raleigh
Center coordinates of site (lat/long in degree decimal format): 36.4782,-80.7039
Universal Transverse Mercator: NIA
Name ofnearest waterbody: Cooks Creep
E. REVIEW PERFORMED FOR SITE EVALUATION (CHECK ALL THAT APPLY):
Office (Desk) Determination. Date: Nov 20, 2018
❑ Field Determination. Date(s):
Use the table below to document aquatic resources and/or aquatic resources at different sites
TABLE OF AQUATIC RESOURCES INREVIEWAREA WHICH "MAY BV SUBJECT TO REGULATORY
JURISDICTION
Site
Centered Coordinates
Estimated Amount
Type of Aquatic
Geographic
Number
(decimal degrees)
of Aquatic Resource
Resources
Authority to Which
in Review Area
Aquatic Resource
Latitude Longitude
(linear feet or acre)
"May Be" Subject
See attached
❑ Wetland
❑ Section 404
table
❑ Non -wetland Waters
❑ Section 10/404
❑ Wetland
❑ Section 404
❑ Non -wetland Waters
❑ Section 10/404
❑ Wetland
❑ Section 404
❑ Non -wetland Waters
❑ Section 10/404
E1 Wetland
❑ Section 404
❑ Non -wetland Waters
❑ Section 10/404
❑ Wetland
❑ Section 404
El Non -wetland Waters
❑ Section 10/404
❑ Wetland
❑ Section 404
❑ Non -wetland Waters
❑ Section 10/404
❑ Wetland
❑ Section 404
Non -wetland Waters
❑ Section 10/404
Wetland
❑ Section 404
�] Non -wetland Waters
❑ Section 10/404

1. The Corps of Engineers believes that there may be jurisdictional aquatic resources in the review
area, and the requester of this PJD is hereby advised of his or her option to request and obtain an
approved JD (AJD) for that review area based on an informed decision after having discussed the
various types of JDs and their characteristics and circumstances when they may be appropriate,
In any circumstance where a permit applicant obtains an individual permit, or a Nationwide General
Permit (NWP) or other general permit verification requiring "pre- construction notification" (PCN),
or requests verification for a non -reporting NWP or other general permit, and the permit applicant
has not requested an AJD for the activity, the permit applicant is hereby made aware that: (1) the
permit applicant has elected to seek a permit authorization based on a PJD, which does not make
an official determination of jurisdictional aquatic resources; (2) the applicant has the option to
request an AJD before accepting the terms and conditions of the permit authorization, and that
basing a permit authorization on an .AJD could possibly result in less compensatory mitigation
being required or different special conditions; (3) the applicant has the right to request an individual
permit rather than accepting the terms and conditions of the NWP or other general permit
authorization; (4) the applicant can accept a permit authorization and thereby agree to comply with
all the terms and conditions of that permit, including whatever mitigation requirements the Corps
has determined to be necessary; (S) undertaking any activity in reliance upon the subject permit
authorization without requesting an AJD constitutes the applicant's acceptance of the use of the
PJD; (6) accepting a permit authorization (e.g., signing a proffered individual permit) or
undertaking any activity in reliance on any form of Corps permit authorization based on a PJD
constitutes agreement that all aquatic resources in the review area affected in any way by that
activity will be treated as jurisdictional, and waives any challenge to such jurisdiction in any
administrative or judicial compliance or enforcement action, or in any administrative appeal or in
any Federal court; and (7) whether the applicant elects to use either an AJD or a PJD, the JD will
be processed as soon as practicable. Further, an AJD, a proffered individual permit (and all terms
and conditions contained therein), or individual permit denial can be administratively appealed
pursuant to 33 C.F.R. Part 331. If, during an administrative appeal, it becomes appropriate to
make an official determination whether geographic jurisdiction exists over aquatic resources in the
review area, or to provide an official delineation of jurisdictional aquatic resources in the review
area, the Corps will provide an AJD to accomplish that result, as soon as is practicable. This PJD
finds that there "may be" waters of the U.S. and/or that there "may be" navigable waters of the U.S.
on the subject review area, and identifies all aquatic features in the review area that could be
affected by the proposed activity, based on the following information:

SUPPORTING DATA. Data reviewed for PJD (check all that apply)
Checked items should be included in subject file. Appropriately reference sources
below where indicated for all checked items:
❑� Maps, plans, plots or plat submitted by or on behalf of the PJD requestor:
Map:Vicinity Map
❑ Data sheets prepared/submitted by or on behalf of the PJD requestor.
❑ Office concurs with data sheets/delineation report.
❑ Office does not concur with data sheets/delineation report. Rationale:
❑ Data sheets prepared by the Corps:
❑ Corps navigable waters' study:
❑ U.S. Geological Survey Hydrologic Atlas:
❑ USGS NHD data.
❑ USGS 8 and 12 digit HUC maps.
■❑ U.S. Geological Survey map(s). Cite scale & quad name:
Dobson 1:24K
❑ Natural Resources Conservation Service Soil Survey. Citation:
❑ National wetlands inventory map(s). Cite name:
❑ State/local wetland inventory map(s):
❑ FEMA/FIRM maps:
❑ 100-year Floodplain Elevation is: .(National Geodetic Vertical Datum of 1929)
0 Photographs:❑ Aerial (Name & Date): 2014 Statewide Aerial Photographs
or ❑ Other (Name & Date):
❑ Previous determination(s). File no. and date of response letter:
❑ Other information (please specify):
IMPORTANT NOTE: The information recorded on this form has not necessarily
been verified by the Corps and should not be relied upon for later] u risdict ion al
determinations.
Reguturelatory
staff
date m �'/
Re ulato staff member
completing PJD
b�
�Slgnatre and date of
person requesting PJD
(REQUIRED, unless obtaining
the signature is impracticable)'
1 Districts may establish timeframes for requestor to return signed PJD forms. if the requestor does not respond
within the established time frame, the district may presume concurrence and no additional follow up is
necessary prior to finalizing an action.

Hair Sheep Creek Restoration Site Stream and Wetland Tables July 2018
Table 1.
Stream Name
Stream Status
Bankfull
Height
(Feet)
Bankfull
Width
(Feet)
Length
(Feet)
DWQ
Score
Lat
Long
Cook's Creek
Perennial
4
8
680
-
36.4789
-80.7034
T1
Intermittent
0.5
3
357
21.25
36.4792
-80.7052
T1
Perennial
2
4
477
31.5
36.4782
-80.7037
T1-1
Intermittent
0.5
3
172
22.5
36.4791
-80.7050
T2
Perennial
3
6
1,966
36
36.4762
-80.7067
T2-1
Intermittent
2
3
254
-
36.4774
-80.7076
T2-1
Perennial
3
4
84
31
36.4766
-80.7077
T2-2
Perennial
4
5
284
1 27.5
1 36.4770
-80.7074
Table 2.
Wetland ID
NCWAM
Class
Hydrologic Cowardin
Isolated
Yes/No
Size
(Acres)
USACE Forms
WET UP
Lat
Long
WA
Headwater Forest
Riparian
PEM*
No
0.34
WB
WB
36.4767
-80.7071
WB
Headwater Forest
Riparian
PEM*
No
0.16
X
X
36.4754
-80.7059
WC
Headwater Forest
Riparian
PEM*
No
0.18
WB
WB
36.4752
-80.7057
WD
Headwater Forest
Riparian
PEM*
No
0.03
WB
WB
36.4791
-80.7052
PEM = Palustrine Emergent
* = Vegetatiion is disturbed by cattle grazing
X = Data form completed
Page 1 of 1

Potential WOTUS -`
Intermittent Streams
�xy '
Perennial Streams
N,G OneM'ap ING,Ce1AWfomGeographic Inforrraflon and gnalys s,
- Wetlands Board;
0 125 250 FIGURE 3. POTENTIAL WOTUS A
N
HAIR SHEEP CREEK RESTORATION SITE SourcmNOOneMap
Feet SURRY COUNTY, NC Orthoimagery, 2014.

13.8 Invasive Species
Mitigation Plan—112312020 Hair Sheep Stream Mitigation Bank

Mitigation Plan—112312020 Hair Sheep Stream Mitigation Bank

Existing Invasive Populations and Proposed Treatment
In the revegetated portions of the site, invasive species are present in varying densities. The riparian zones
of T1, T1-1, and Cooks Creek have scattered individuals of Callery pear (Pyrus calleryana), Chinese privet
(Ligustrum sinense), Japanese honeysuckle (Lonicera japonica), and multiflora rose (Rosa multiflora). T2
has all of the above species along with tree of heaven (Ailanthus altissima).
During construction, mechanical removal (including grubbing) will be the preferred treatment method
since equipment will be mobilized on -site. KCI equipment operators and contractors are experienced in
identifying common invasive species and understand the methodology for mechanical removal of these
as plants as they implement the designed stream improvements. The staff is also experienced in
minimizing damage to desirable canopy trees and will avoid critical root zones when possible to minimize
damage to trees that will remain.
In addition, topical chemical treatment using a tank mix of active ingredients triclopyr and glyphosate will
be used as needed on larger -stemmed woody species throughout targeted areas identified above using
backpack sprayers. Stumps will also be treated using a 40% active ingredient glyphosate solution. Invasive
shrubs and vines such as Japanese honeysuckle and multiflora rose will be treated topically with
glyphosate.
Monitoring Phase
Following construction, the site will be monitored for the presence of invasive species during both the
visual assessments and vegetation plot monitoring events and will follow the guidance in the Wilmington
District Stream and Wetland Compensatory Mitigation Update (NCIRT 2016) regarding invasive species. A
list of non-native invasive species for North Carolina is found in the NC SAM User Manual Appendix I.
Per the NCIRT 2016 guidance, invasive species management should occur when the functional integrity of
the vegetative community is impacted. One or more invasive species may present a threat to the site, but
the desirable species may have the ability to survive or outcompete despite the competition. Once an
invasive species is identified as impairing the site, physical and/or chemical removal and treatment should
occur. Any control measures will be noted in the annual monitoring reports. It is anticipated that
additional post -construction treatments will be required to control the growth and re -propagation of the
invasive populations at the HSSMB. Chemical treatment is expected to be the standard process for post -
construction services.
North Carolina Interagency Review Team. 2016. Wilmington District Stream and Wetland Compensatory
Mitigation Update. Last accessed at: http://saw-reg.usace.army.mil/PN/2016/Wilmington-District-
Mitigation-Update.pdf
N.C. Stream Functional Assessment Team. 2016. N.C. Stream Assessment Method (NC SAM) User Manual.
(https://ribits.usace.army.mil/ribits apex/f?p=107:150:16800695257725::NO::P150 DOCUMEN
T ID:36298 )
Mitigation Plan—112312020 Hair Sheep Stream Mitigation Bank

Mitigation Plan—112312020 Hair Sheep Stream Mitigation Bank

13.9 NEPA Documentation
Mitigation Plan—112312020 Hair Sheep Stream Mitigation Bank

Mitigation Plan—112312020 Hair Sheep Stream Mitigation Bank

SERVICE
FE
N United States Department of the Interior
O
a �
FISH AND WILDLIFE SERVICE
�9RCH & 1$b9 Asheville Field Office
160 Zillicoa Street Suite #B
Asheville, North Carolina 28801
November 19, 2018
Mr. Timothy J. Morris
KCI Technologies
4505 Falls of Neuse Road, Ste. 400
Raleigh, NC 23113
Dear Mr. Morris:
Subject: Hair Sheep Creek Restoration Site, Haystack Road, Mount Airy, Surry County, North
Carolina (KCI Job 9161706170)
We received your letter of October 25, 2018 (received via email on October 30, 2018),
requesting our comments on the subject project. The following comments are provided in
accordance with the provisions of the National Environmental Policy Act (42 U.S.C.§4321 et
seq.) and section 7 of the Endangered Species Act of 1973, as amended (16 U.S.C. 1531-1543)
(Act).
According to our records and a review of the information you provided, no federally listed
species or their habitats occur in the project area. Therefore, we believe the requirements under
section 7 of the Endangered Species Act are fulfilled. However, obligations under section 7 of
the Endangered Species Act must be reconsidered if: (1) new information reveals impacts of
this identified action that may affect listed species or critical habitat in a manner not previously
considered, (2) this action is subsequently modified in a manner that was not considered in this
review, or (3) a new species is listed or critical habitat is determined that may be affected by the
identified action.
We appreciate the opportunity to provide these comments and request that you continue to keep
us informed as to the progress of this proposed project. If we can be of assistance or if you have
any questions, please contact Mr. Allen Ratzlaff of our staff at 828/258-3939, Ext. 229. In any
future correspondence concerning this project, please reference our Log Number 4-2-19-044.
E-Copy:
Olivia Munzer, North Carolina Wildlife Resources Commission, olivia.munzergncwildlifLM

North Carolina Department of Natural and Cultural Resources
State Historic Preservation Office
Ramona M. Bartos, Administrator
Governor Roy Cooper
Secretary Susi H. I Ia nilton
October 8, 2018
Steve Kechefski
Asheville Regulatory Field Office
151 Patton Avenue, Room 208
Asheville, NC 28801-5006
Office of Archives and History
Deputy Secretary Kevin Cherry
Re: KCI Yadkin 01 Umbrella Mitigation Bank, Haystack Road, Mount Airy, SAW 2018-00712,
Surry County, ER 18-2277
Dear Mr. Kechefski:
We have received a public notice concerning the above project.
We have conducted a review of the project and are aware of no historic resources which would be affected by
the project. Therefore, we have no comment on the project as proposed.
The above comments are made pursuant to Section 106 of the National Historic Preservation Act and the
Advisory Council on Historic Preservation's Regulations for Compliance with Section 106 codified at 36 CFR
Part 800.
Thank you for your cooperation and consideration. If you have questions concerning the above comment,
contact Renee Gledhill -Earley, environmental review coordinator, at 919-807-6579 or
environmental.review&ncdcr.gov. In all future communication concerning this project, please cite the above
referenced tracking number.
Sincerely,
67,Ramona M. Bartos
Location: 109 East Jones Street, Raleigh NC 27601 Mailing Address: 4617 Mail Service Center, Raleigh NC 27699-4617 Telephone/Fax: [phone]-6599

13.10 Agency Correspondence
Mitigation Plan—112312020 Hair Sheep Stream Mitigation Bank

Mitigation Plan—112312020 Hair Sheep Stream Mitigation Bank

Memoranda
ENGINEERS ♦ SURVEYORS ♦ SCIENTISTS ♦ CONSTRUCTION MANAGERS
KCI LANDMARK CENTER II, SUITE 220 ♦ 4601 SIX FORKS ROAD ♦ RALEIGH, NC 27609 ♦ 919-783-9214 ♦ (FAX) 919-783-9266
TO: Mr. Steve Kichefski, ACOE
Ms. Kimberly Browning, ACOE
FROM: Tim Morris, KCI
DATE: May 30,2018
SUBJECT: KCI Yadkin Umbrella Bank Prospectus — Hair Sheep Site Visit
IRT On -Site Prospectus Review Meeting
KCI Project Number: 161706170
Attendees:
Kimberly Browning, ACOE
Steve Kichefski, ACOE
Mac Haupt, DWR
Andrea Leslie, NC WRC
Tim Morris, KCI
Adam Spiller, KCI
An IRT field review was conducted for the above referenced project on May 29, 2018 starting at
approximately 10:30 am. Weather was overcast with brief periods of rain. Approximately 1.6"
of rainfall had fallen during the previous week leading up to the site visit. All project streams
(Cooks Creek and Tributaries 1, 1-1, 2 and 2-1) were flowing at the time of the site visit. Tim
Morris and Adam Spiller from KCI presented the project to the attendees. The following issues
and concerns were documented at the meeting and will be addressed in the Final Prospectus and
future development of the site.
The IRT questioned the status of the stream/wetland calls at the top of T2-1 and T1,
indicating that the Corps reviewer (likely William Elliot) may call these wetlands rather
than streams which could impact crediting. Although partially vegetated, the areas
maintain perennial flow and could probably be considered headwater streams or wetlands.
The group agreed that the crediting would hinge on the JD calls and the final mitigation
plan would reflect the final decision in these areas.
Response: KCI indicated that if these areas were not considered streams, KCI would
likely attempt to offset the stream credit losses with wetland rehabilitation or re-

Memorandum
Page 2 of 3
May 30, 2018
establishment credits along T2 where existing and restorable wetland functions will be
replaced as a result of the project. KCI intends to do a formal delineation the week of 6-
4-18. The Final Prospectus will reflect this delineation as well as the JD if it occurs
prior to the completion of the Final Prospectus. If KCI restructures the prospectus to
request wetland credits for the project, pressure transducer gauges will be installed
ASAP to document the baseline hydrology of the existing and restorable wetlands. These
gauges will also be used to document whether the restored stream will have any impact
on existing emergent and scrub -shrub wetland features.
2. A general comment was made that the IRT did not like the fact that the project was
bisected by I-74 and that the project was generally small when compared to most
mitigation banks. The IRT also expressed concern that cattle had access upstream of the
T2.
Response: KCI will attempt to re -initiate contact with the upstream landowner to see if
the headwaters of T2 can be protected with a conservation easement. Since these areas
were not fully walked during the site visit, it is possible that an additional site visit would
be required to determine the credit status of these tributaries. The IRT indicated that
since these areas were small that it may be possible to make a determination based on
video or photo documentation.
3. The IRT expressed concern regarding the heavy infestation of invasive species
(honeysuckle, tree of heaven, multiflora rose, etc.) along Tributary 2.
Response: KCI will include an invasive species management plan in the mitigation plan
that identifies the control strategies for each invasive species identified during
assessment.
4. The IRT indicated that the expanded buffers that are proposed for the project should be
run through the new buffer guidance on a reach by reach basis to determine if extra
crediting is feasible.
5. The IRT mentioned that the proposed RSC structure proposed at the top of T1 could take
on a variety of different forms, depending on the goals of the feature. The IRT stressed
that the feature should not require future maintenance if it was to be sited within the
Conservation Easement.
Response: KCI will stabilize the eroded ephemeral drainage feature and also provide
storage and retention capabilities for the downstream resource. While the feature may
be similar in character to an RSC, it may be modified to utilize on -site materials if

Memorandum
Page 3 of 3
May 30, 2018
drainage characteristics are determined to be appropriate.
6. DWR questioned the need for the crossing on T-1.
Response: KCI called the landowner and as a result of the conversation we will
eliminate the crossing on T-1. We will need to improve a farm road above the headwater
seep (outside the easement) in order to allow access to his property along I-74.

====W4111ME
MMMEV4�
MMMFIIIIW�
KCI
ASSOCIATES OF NC
ISO 9001.2008 CERTIFIED
ENGINEERS • PLANNERS • SCIENTISTS • CONSTRUCTION MANAGERS
4505 Falls of Neuse Rd., Suite 400 • Raleigh, NC 27609 • Phone [phone] • Fax [phone]
January 23, 2020
Steve Kichefski, Project Manager
Wilmington District, US Army Corps of Engineers
Asheville Field Office
151 Patton Avenue, Room 208
Asheville, North Carolina 28801-5006
KCI Yadkin 01 Umbrella Mitigation Bank -Hair Sheep Stream Mitigation Bank, Surry County, NC
USACE AID#: SAW-2018-00712
Dear Mr. Kichefski,
Following the comments received by KCI on November 22, 2019, we have prepared the following
responses to the draft mitigation plan review for the Hair Sheep Stream Mitigation Bank. In reference to
comments below, please note the appendices in the final report are now found in Section 13 instead of
12.
Mac Haupt, NCDWR
1. Section 6.4- Reach T2- DWR will require a couple of gauges be installed in the areas where the stream
channel is being constructed through the wetlands. Once the Design Sheets are reviewed there will
be a recommendation for their placement.
Per DWR request, we are proposing three wetland gauges to be installed as shown on Figure 10 in
Wetlands A, e, and C.
2. DWR likes that there are no crossings on this mitigation site.
3. Section 7.0 Performance Standards- the stream 30-day flow requirement pertains to intermittent
streams only
This has been changed in the mitigation plan to "The project's intermittent streams must also show a
minimum of 30 continuous flow days within a calendar year (assuming normal precipitation)."
4. Table 11- please be sure to add the wetland hydrologic monitoring to this table.
We have added a row for wetland hydrologic monitoring to the table.
5. Design Sheets- sheet 6, in the future please set up your design sheets with the plan view on top
of the profile view so we can compare the bed form changes with the stationing. On the current
THE MOST INCREDIBLE THING WE'VE ENGINEERED IS OUR TEAM
► VAMA:'A 41M41i]hSl

design sheets, for example sheet 7, we cannot tell exactly where station 26+00 starts, and where
is the midpoint or 26+50 defined on the sheet? DWR will need to see some revised or clarified
stationing in order to recommend placement of wetland monitoring gauges.
We have adjusted some of the stationing labels for better visibility. We have added three wetland
gauges within Wetlands A, B, and C.
6. Design sheet 7- DWR recommends a minimum of 10 feet of floodplain bench behind the meander
bends for Reach T2.
We have adjusted the bench to be a minimum of 10 feet.
DWR would like to emphasize that in the future, this type of project may not be approved given the
total reach lengths and project fragmentation.
Noted.
Andrea Leslie, NCWRC:
1. A trout moratorium is not applicable at this site.
Noted.
2. We are very glad that the headwaters of T2 were captured and that the crossing was eliminated.
Kim Browning and Steve Kichefski, USACE:
1. Section 7.0: the stream hydrologic performance of 30-days continuous flow is only applicable to
intermittent streams.
This has been changed in the mitigation plan to "The project's intermittent streams must also show a
minimum of 30 continuous flow days within a calendar year (assuming normal precipitation)."
2. Section 12A the credit release schedule is based on the DMS schedule. This site should use the
Bank Credit Release Template.
This has been corrected to the bank credit release template.
3. A step pool and BMP (RSC) is planned on Trib 1. Please ensure that the BMP is not in jurisdictional
waters, and that since it's within the easement boundary that any necessary maintenance is
discussed in the plan, if any is required.
The planned BMP is not within jurisdictional waters — it is upstream of the JD call for the stream. This
structure should not require regular maintenance once properly installed, it will function similar to
other in -stream structures in providing grade control.
4. Please address how existing pasture grasses will be treated within the buffer for vegetation
establishment.
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Existing undesirable pasture grasses will be sprayed with herbicide and left fallow until full mortality
is achieved. The riparian area will then be scarified or disked to break up any existing compaction
prior to seeding and stabilizing with temporary and permanent seed mixes as prescribed in the project
plans.
5. Please ensure that wetland monitoring gauges are installed in existing wetlands (WA, WB, WC) where
stream restoration will bisect these wetlands to ensure that functional loss does not occur. At least
one veg plot should be placed in this area. If any wetland credit is to be sought from this project you
should propose it before plan/bank approval and construction.
We are proposing three wetland gauges to be installed as shown on Figure 10 in Wetlands A, B, and
C. Currently there is one vegetation plot in Wetland WA and another at the bottom of Wetland WC
(the jurisdictional wetland shapes have been added to Figure 10).
6. Some concern about Trib 2-1 being more wetland like. I'd like to see a statement in the performance
standards regarding maintaining jurisdictional stream features.
Tributary 2-1 is an entrenched channel based on its landscape position and will be maintained as such
per the proposed design. There are large existing trees along the tops of the banks that will remain in
place as much as possible, and as a result, the width of the floodplain will remain limited to current
channel limits. The proposed improvements to the channel will be to stabilize bank and bed
degradation. Based on these factors, we do not anticipate this reach functioning as a wetland. In
addition, we have flow monitoring stations at the heads of all project reaches as shown on Figure 10
to document stream flow for at least 30 days.
7. Section 7.0 (page 32) —Change the language in the first paragraph to "will follow' instead of "are
based" on the 2016 District Guidance unless there are specific areas that differ in your plan. If there
are specific areas that differ please call them out.
This has been corrected.
8. The vegetation planting plan shows planting for the entire CE project area, however the aerial shows
some existing vegetation coverage. Are there any reaches or significant areas where vegetation will
be maintained and planting will not occur or be minimal?
Although the aerial appears to show forested coverage at the site, these areas are really sparsely
vegetated below the canopy trees. Planting will occur across the site.
9. Add a financial assurance section to the body of the mitigation plan with at least some basic
information even if deferring some specific or proprietary information to the appendices.
We have changed Section 11 to have a summary of the financial assurances.
10. It would be beneficial to have fixed photo points to assist with monitoring. Please include the
location of these points on the Monitoring Components Map.
These have been added to Figure 10.
11. Please update the following names in the Banking Instrument: Byron Hamstead, not Hampstead,
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and the NMFS representative is Twyla Cheatwood, not Dr. Ken Riley (though this is not likely
applicable in Surry County). Also, please correct the typo in the first sentence of page 1 to "33 CFR
332.8(a)(1)" instead of "33 CPR 332.8(a)(1)".
These comments have been corrected.
12. Please provide an acceptance letter from the proposed long term steward. Also, additional
information is needed to evaluate their qualifications and document the specifics for long term
management:
The acceptance letter is included in
Questions for determining suitability of a LTM/CE holder:
A detailed response to the questions below have been provided under separate cover to Steve Kichefski
on 12-5-20. A copy of that detailed response is attached.
a. How long have they been around?
How big is their staff?
How do they monitor these sites (frequency, staffing, on -site or remote)? Provide a site
inspection SOP or report template if available.
Do they contact neighboring land owners?
How do they handle violations?
Provide more information regarding the Conservation Defense Fund coverage for this project.
Would it cover all legal fees for all site encroachments or are separate funds set aside for legal
defense if necessary?
g. Do they hold the easement themselves, or are they just the land steward? If so, how many
easements and the total acreage?
Do they currently hold mitigation bank easements in other districts? If so, please provide the
name of the district and a contact person.
Are any employees of the company affiliated with mitigation banks or their sponsors?
For endowments:
Do they manage the endowments, or are they funded through a financial mechanism for these
sites?
k. How will the endowments be funded (up front in a lump sum or throughout the monitoring
period)?
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If they do manage the endowment, how is the endowment managed (type of account, cap
rate, etc.)?
M. Is the endowment put into a combined fund or kept separate for each site?
Are the funds used for anything other than stewardship of the site?
o. What is the name and location of the financial institution that holds their accounts?
Sincerely,
Tim Morris
Project Manager
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ATLANTIC COAST
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Atlantic Coast Conservancy's Mission
The mission of the Atlantic Coast Conservancy is to provide 21s' Century solutions and
sound scientific applications for conservation of critical natural resources in the face of a
changing climate focusing on the Southeastern United States with specific utilization of
geographic information systems applications in land conservation, carbon sequestration
and conservation biology.
POLICY FOR THE CREATION OF STEWARDSHIP FEES
Scope of Stewardship Policy
This policy establishes the principles governing stewardship fees for conservation
easement donations to the Atlantic Coast Conservancy, the methods for determining
stewardship principal required, and the procedures to be followed in establishing
stewardship amounts for conservation easement projects.
Purpose
The Atlantic Coast Conservancy, Inc. recognizes that the costs of monitoring and
enforcing easements are growing each year, not only as a result of new easement
donations but as a result of changes in ownership of donated easement properties, land
usage, and the pressures of urbanization. While every attempt is made to secure
stewardship fees from the original easement donors, it is essential that those who wish to
have an easement project provide for perpetual funds to insure their preservation. The
potential for each easement area to be subdivided for multiple ownerships requires that
this policy also address subdivision.
Basic Operating Principles
A. The Atlantic Coast Conservancy, Inc. prefers to accept easement donation with
accompanying stewardship fess, either by the donor or other interested parties, unless
agreed upon by the Board of Directors.
B. Full stewardship contributions should be provided at the time of easement donation
if possible.

An easement donor may provide for stewardship principal in one of the following
ways:
I. A contribution in full at the time of the easement donation.
2. A partial contribution at the time of easement with additional guaranteed
contributions over a period of years.
3. At the Conservancy's discretion, contributions may be deferred in
exceptional circumstances.
C. The stewardship fees for an individual easement donation shall be based upon the
projected costs of monitoring and enforcement, plan approval and review, and a
minimum amount based on staff time and consultant fees for easement protection
during Internal Revenue Service audits and legal issues as hereinafter described.
D. Contribution of stewardship funds shall be recorded by donor and project area but
shall not be maintained as funds restricted to the particular property unless
associated with compensatory mitigation sites. The differing procedures between
basic conservation easements and compensatory mitigation conservation easements
are addressed in the following sections.
Method for Determination of Stewardship Principal for Basic Conservation Easements
Factors to be considered in establishing the amount of stewardship required include:
A. The size and nature of the easement area to determine time necessary for
inspection.
B. Location in relationship to Jasper, Georgia (or the home office of record) and other
(existing or pending) easements to determine travel time and costs to the easement area.
C. The complexity of the easement and the extent to which easement provisions will
impose significant administrative burdens (e.g., approval of improvement location and
design, approval of woodlot management plans).
D. General administrative costs (e.g., inspection notices, signs, etc.).
E. Base stewardship fees required to cover increased administrative costs of a
subdivision approved by the Board of Directors.
F. A set minimum stewardship to cover any costs associated with the Atlantic Coast
Conservancy's support of potential donor audits or other legal issues which might arise
in the future. Up to 50% of the easement endowment revenue raised in any individual
calendar year can be diverted towards operational expenses with no less than 50%
remaining in an interest bearing account.
2

G. Stewardship principal required based upon the amount of yield to cover the above
costs using a formula reviewed each year by the Board of Directors.
Procedures
A. During the process of delineating easement areas and preparing easement terms,
the Atlantic Coast Conservancy director will discuss with the donor factors affecting
stewardship needs and the provisions of this policy.
B. Atlantic Coast Conservancy director will prepare a Stewardship Fees Calculation
Sheet for review with the donor(s) and the Board of Directors.
C. Stewardship funds received from the donor(s) shall be acknowledged by the
Atlantic Coast Conservancy with a signed gift letter.
D. If stewardship fee are deferred, the estimated stewardship needs will be
acknowledged in writing by the donor(s) in a notarized statement. A copy of the
statement shall be maintained in the permanent files of the Atlantic Coast Conservancy
and in the respective easement file for the property.
Method for Determination of Easement Endowment Principal for Compensatory
Mitigation Conservation Easements
Factors to be considered in establishing the amount of endowment required for
compensatory mitigation conservation easements include:
A. The size and nature of the easement area to determine time necessary for
inspection.
B. Location in relationship to Jasper, Georgia and other (existing or pending)
easements to determine travel time and costs to the easement area.
E. Monitoring and reporting requirements.
F. Public vs. private ownership
G. Public trails and/or access
H. Presence of threatened and endangered species, or other critical or unique natural
features
I. Surface water buffer zones
Whether there is a co -holder of the easement

L General administrative costs (e.g., inspection notices, signs, etc.).
J. A set minimum endowment fund to cover any costs associated with the Atlantic
Coast Conservancy's support other legal issues which might arise in the future. Easement
endowment revenues associated with compensatory mitigation conservation easements
shall be treated as non -wasting (i.e. funds that generate enough interest each year to
cover the costs of annual management), shall be tracked separately, and the principal
endowment funds will be permanently restricted from usage unless for direct costs
associated with easement enforcement.
K. Endowment principal required will be based upon the amount of yield to cover the
above costs using a case -by -case calculated projection of annual cost formula, reviewed
each year by the Board of Directors, or by determination through application of the
Property Analysis Record (PAR) software developed by the Center for Natural Lands
Management.
Procedures for Compensatory Mitigation Conservation Easements
A. During the process of delineating easement areas and preparing easement terms,
the Atlantic Coast Conservancy director will discuss with the donor factors affecting
endowment needs and the provisions of this policy.
B. Atlantic Coast Conservancy Chief Executive Officer will prepare the appropriate
endowment principal calculation for review with the donor(s) and the Board of Directors.
C. Endowment funds received from the donor(s) shall be acknowledged by the
Atlantic Coast Conservancy with a signed acknowledgement letter and placed in a
separate and unique easement endowment account that carries permanent restrictions.
D. If an endowment contribution is deferred and/or the payments are associated with
mitigation credit sales, the endowment needs as well as the payment provisions will be
acknowledged in writing by the donor(s). A copy of the statement shall be maintained in
the permanent files of the Atlantic Coast Conservancy and in the respective easement file
for the property.
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