20190157 Ver 3_Credit Release Task 4 partial - Perry Hill II_20220705

ROY COOPER
Governor
ELIZABETH S. BISER
Secretary
RICHAM E. ROGERS, JR.
Director
NORTH CAROLINA
Environmental Quality
July 5, 2022
Shawn Wilkerson DWR Project #: 2019-01570
Wildlands Holdings V, LLC Orange County
(via electronic mail: swilkerson&wildlandseng.com )
Re: Perry Hill II Mitigation Banking Instrument (MBI)
Perry Hill II Bank Parcel Credit Release — Task 4 (partial)
Dear Mr. Wilkerson:
On December 1, 2021, the Division of Water Resources (DWR) received the Year 1 Monitoring
Report from Wildlands Holdings V, LLC (Wildlands) for the Perry Hill II site. Results of the
vegetation data showed stem densities higher than the required 260 stems/acre throughout the site.
Additionally, no concerns with invasive species within the easement boundary were noted. An
encroachment of approximately 0.17 acres was noted in the report due to the installation of
underground utilities (a water line) by a tenant farmer. The encroachment is not allowed in the
conservation easement and has impacted trees and other vegetation within the footprint where buffer
mitigation credits and nutrient offset credits are generated. On January 31, 2022, DWR provided
written comments to Wildlands regarding the Year 1 Monitoring Report review.
In April, Wildlands met with members on the Interagency Review Team (IRT), including DWR, in
April to discuss the impacts of the water line encroachments within the two conservation easements
affiliated with this site: an inner project boundary and easement for the DMS Full Delivery stream
and buffer project called Perry Hill (DMS ID# 100093 and DWR ID# 2019-0157vl); and an outer
project boundary and easement for the Perry Hill II site. IRT members agreed to allow the water
lines to remain but with a reduction in credits for the Perry Hill and Perry Hill II sites. No
adjustments to the conservation easement boundaries for the two sites were required by the IRT,
other than adding a maintenance area of twenty (20) feet to allow for future maintenance to the water
lines.
On June 10, 2022, DWR received supplemental documentation from Wildlands for the Perry Hill II
site in response to the comments from DWR on January 31, 2022 and the IRT. Wildlands concluded
that credit reductions affiliated with the water line encroachments and additional maintenance areas
resulted in the following revised credit generations for the site: 32,886 buffer restoration credits,
11,550.621 buffer enhancement credits and 586,609 ft2 (30,610.030 lbs-nitrogen and 1,971.523 lbs-
phosphorus) of nutrient offset credits. The credits being released have been modified to reflect any
changes to the creditable acreage as provided in the As -Built Report.
Lastly, DWR is issuing a partial credit release (5%) with the remaining credit release (5%) to be
issued when Wildlands has provided an updated conservation easement and corresponding Plat
addressing the maintenance area for the water line. The attached figure shows the location of the
water line encroachments within the site's conservation easement.
North Carolina Department of Environmental Quality I Division of Water Resources
512 North Salisbury Street 1 1611 Mail Service Center I Raleigh, North Carolina 27699-1611
NOR1H CAROL Na 919.707.9000

Perry Hill II Site
Wildlands
July 5, 2022
DWR received a continuation certificate for the performance bond (#107501176) issued to Wildlands
from Travelers Casualty and Surety Company of America, in the amount of $100,000, to cover
monitoring and maintenance at the subject site. The term of this bond ends with the approval of the
Year 2 Monitoring Report by the DWR. Future credit releases will be dependent on both the renewal
of this performance bond and the annual monitoring reports.
In accordance with the MBI, signed on September 14, 2020, the following Project Milestones have
been met and the corresponding credits shall be released:
Task/Milestones
Credit
4) Monitoring Report #1 Approved by the DWR & financial 5% (partial)
assurance renewed
By copy of this correspondence, DWR confirms that you have satisfied the above requirements for
the above -referenced tract and therefore the following credits are released:
• 5% of the Neuse buffer Restoration credits (0.05 x 32,886 ft2 = 1,644.300 ft2) minus 49 ft2
yields 1,595.300 ft2 now available to sell.
• 5% of the Neuse buffer Enhancement via Cattle Exclusion credits (0.05 x 11,550.621 ft2 =
577.531 ft2) minus 30.907 ft2 yields 546.624 ft2 now available to sell.
• 5% of the Nitrogen nutrient offset credits (0.05 x 30,610.030 lb-N = 1,530.502 lb-N) minus
98.675 lbs-N yields 1,431.8271bs-N now available to sell.
• 5% of the Phosphorus nutrient offset credits (0.05 x 1,971.523 lb-P = 98.576 lb-P) minus
6.353 lbs-P yields 92.223 lbs-P now available to sell.
Please note that nutrient offset credits generated at this site must be used for impacts in
HUC 03020201 of the Upper and Lower Falls Watersheds within the Neuse River Basin
pursuant to 15A NCAC 02B .0703 which became effective on April 1, 2020. Additionally, the
riparian buffer credits must be used for authorized impacts in the Neuse River Basin
according to guidelines in the Consolidated Buffer Mitigation Rule, 15A NCAC 02B .0295,
which became effective on November 1, 2015.
Please feel free to call me at [phone] if you have any questions regarding this
correspondence.
Sincerely,
�DocJu�Siignedd by:
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Paul Wojoski
Supervisor, 401 & Buffer Permitting Branch
cc:File Copy (Katie Merritt)
Ashley Yarsinske (Wildlands) — via electronic mail
Erin Davis (DWR IRT)
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Perry Hill II Site
Wildlands
July 5, 2022
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