20201384 Ver 3_MBI_DRAFT_20220721

Mitigation Project Information Upload
ID#* 20201384
Version* 3
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Katie Merritt
Initial Review Completed Date 07/27/2022
Mitigation Project Submittal - 7/21/2022
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Is this a Prospectus, Technical Proposal or a New Site? *
Type of Mitigation Project: *
Stream Wetlands Buffer Nutrient Offset
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Project Contact Information
Company/Owner: * Environmental Banc & Exchange, LLC
Contact Name: *
Jamey McEachran
Project Information
Project Type:
Project Name: Bobs Branch Mitigation Site
County: Randolph
Document Information
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Mitigation Document Type: *
Mitigation Bank Instrument
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RES Bobs Branch MBI_DRAFT.pdf 477.63KB
Please upload only one PDF of the complete file that needs to be submitted...
Jamey McEachran
IlCfabeitoIL

AGREEMENT TO ESTABLISH THE RES BOBS BRANCH MITIGATION BANKING
INSTRUMENT IN THE RANDLEMAN LAKE WATERSHED FOR RIPARIAN BUFFER
MITIGATION CREDITS PURSUANT TO THE CONSOLIDATED BUFFER RULES FOR
THE RANDLEMAN LAKE WATERSHED
TABLE OF CONTENTS
I.
PREAMBLE.......................................................................................................................
2
II.
LOCATION AND GEOGRAPHIC SERVICE AREA ......................................................
2
III.
AUTHORITIES..................................................................................................................
3
IV.
ESTABLISHMENT OF BANK PARCEL.........................................................................
3
V.
PRE -CONSTRUCTION DOCUMENTATION.................................................................
4
VI.
POST CONSTRUCTION DOCUMENTATION...............................................................
6
VIL
CALCULATION OF MITIGATION CREDITS...............................................................
9
VIII.
CREDIT RELEASE SCHEDULE....................................................................................
10
IX.
PROCEDURE FOR DEBITING AND CREDITING......................................................
11
X.
BANK PARCEL CLOSURE............................................................................................
12
XI.
GENERAL PROVISIONS FOR THE BANK PARCEL .................................................
12
ATTACHMENTS
A — Division of Water Resources Authority Document
B — Randleman Lake Watershed Buffer Ledger Template
C- Project Credit Table (example)
References
1. Riparian Buffer Mitigation Rule:
http://reports.oah. state.nc.us/ncac/title%2015 a%20-%20environmental%20guality/chapter%2002%20-
%20environmental%20management/subchapter%20b/ 15 a%20ncac%2002b%20.0295.pdf
2. Buffer Interpretation/ Clarification 9 2008- 019 for diffuse flow:
https:Hfiles.nc. gov/ncdeg/Water%2OQualiiy/Surface%20 W ater%2OProtection/401 Buffer%2OClarification%2OMem
o s/Diffuse-Flow-for-Buffer-Mitigation-Sites-Buffer-Clarification-Memo-20080819.pdf
3. Clarifed Procedures for Calculating Buffer Mitigation Credits and Nutrient Offset Credits (November
2019):
https:Hfiles.nc. gov/ncdeq/Water%2OQualiiy/Surface%20 Water%2OProtection/401 /Mitigation/Issues---Resolutions-
Ver-1.0-buffer-mitigation-nutrient-offset.pdf
1

I. PREAMBLE
This RES Bobs Branch Mitigation Banking Instrument ("Instrument") regarding the establishment,
use, operation, and maintenance of the Bobs Branch Buffer Mitigation Bank Parcel ("Bank Parcel"),
to provide Randleman Lake Watershed Riparian Buffer mitigation credits ("Riparian Buffer Credits")
is made and entered into by and among Environmental Banc and Exchange ("EBX, LLC") acting as
the Bank Sponsor ("Sponsor"), and the North Carolina Department of Environmental Quality —
Division of Water Resources ("DWR" ). This Instrument is in accordance with the Consolidated
Mitigation Rule 15A NCAC 02B .0295, which became effective on November 1, 2015 (Reference 1).
The purpose of this Bank is:
A. To restore riparian vegetation adjacent to streams and/or ephemeral channels with the intent to
improve water quality within the Randleman Lake Watershed.
B. To convert agricultural land uses within riparian areas adjacent to streams, ephemeral channels,
ponds, and/or agricultural ditches into a dense, hardwood vegetated state with the intent to
significantly reduce nutrient loadings associated with agricultural practices into streams.
C. To provide mitigation and sell any resulting Riparian Buffer Credits to third parties in the
Randleman Lake Watershed, for development (both existing and proposed) requiring such
mitigation.
IL LOCATION AND GEOGRAPHIC SERVICE AREA
A. The Geographic Service Area ("GSA") is the designated area wherein a Bank can reasonably be
expected to sell Riparian Buffer Credits for impacts requiring such mitigation.
B. The GSA for this instrument is limited to the Randleman Lake Watershed of the Cape Fear River
Basin.
C. Sale or transfer of Riparian Buffer Credits shall be limited to Randleman Lake Watershed, as
defined in rule 15A NCAC 02B .0243, unless otherwise authorized by the DWR or delegated local
government in accordance with 15A NCAC 02B .0295.
D. The following table provides site -specific details of the Bank Parcel proposed under this
Instrument, which is within the Randleman Lake Watershed (8-digit HUC 03030003);
Table 1.0 — Site -specific Details
Bank Parcel
County
14-Digit USGS
DWR Project #
Project
Named Receiving
Primary Land
Name
HUC
Location
Stream
Use/s
Bobs Branch
Randolph
03030003010060
2020-1384
35.84275,
Randleman Lake
Agricultural and
-79.8953
cattle pasture
2

IILAUTHORITIES
A. The Bank will be used to provide Riparian Buffer Credit in accordance with the requirements in
the DWR Authority document referenced herein as "Attachment A" and attached to this
Instrument.
B. Projects eligible for utilization of the credits are those requiring authorization under the
requirements of Attachment A and any new approved North Carolina ("State") statutes and rules
for the Consolidated Buffer Rules for The Randleman Lake Watershed.
C. The sale of mitigation credits generated from the Bank Parcel approved under this Instrument,
shall be consistent with approved State statutes and rules for the Consolidated Buffer Rules for
The Randleman Lake Watershed.
D. Buffer mitigation activities proposed under this Instrument and corresponding Bank Parcel
Development Package (BPDP) to generate Riparian Buffer Credits shall be consistent with North
Carolina statutes and rules for the Randleman Lake Watershed Riparian Buffer Rules that are in
place at the time a complete BPDP is submitted to DWR.
IV. ESTABLISHMENT OF BANK PARCEL
A. In accordance with 15A NCAC 02B .0295, DWR has provided a "Site Viability Letter" for the
Bank Parcel proposed under this Instrument. The site viability letter is not an approval of the site
to generate mitigation credits, but is a preliminary review of the Bank Parcel that details and
confirms existing land -use conditions, defines the riparian zones (Restoration or Preservation), and
identifies features (streams, ditches, ponds, etc.) that meet general criteria to be suitable to generate
mitigation credits. Table 2.0 below outlines when a Site Viability Letter was issued by DWR for
the mitigation site proposed under this Instrument:
Table 2.0 — Site Viability Letter Details
Bank Parcel
NC DWR Site Visit
Viability Letter
Received
Viability Letter
Expiration Date
Bobs Branch
December 3, 2020
February 16, 2021
February 16, 2023
B. A valid Site Viability Letter is required prior to submittal of the BPDP. Site Viability Letters will
either expire on the dates listed in the table above or upon the submittal of an individual As -Built
Report to the DWR, whichever comes first. If the Site Viability Letter expires prior to submittal
of a complete BPDP as described in Section V to DWR, then the Sponsor must submit a formal
request to DWR for a new Site Viability Letter for that Bank Parcel.
C. The Bank Parcel proposed for inclusion under this Instrument shall require a BPDP be submitted
to, and approved by, the DWR prior to use of the individual Bank Parcel for mitigation purposes
or for any sale or transfer of any associated credits. The contents of the BPDP are provided in
Section V.
3

D. The BPDP submitted under this instrument will be placed on public notice and made available for
public commenting for 15 calendar days.
E. In general, the Sponsor expects all Riparian Buffer Mitigation Credits to be generated through
riparian restoration.
F. The Riparian Buffer Credits on this Bank Parcel will be generated through restoration of riparian
areas adjacent to streams deemed viable by DWR. The width of the restoration area should begin
at the most landward limit of the top of bank or the rooted herbaceous vegetation (if present along
streams) and extends landward a minimum of 50 feet and a maximum of 200 feet on all sides of
the surface waters. Riparian Buffer Credit may be achieved through restoration of DWR riparian
buffers as they are defined in 15A NCAC 02B .0243, and other riparian areas allowed per 15A
NCAC 02B .0295 (n) and (o) on the Bank Parcel. Riparian Buffer Credits are only attainable if the
width of the mitigated area is at least 20 feet as measured perpendicularly from top of bank.
G. The Bank Parcel is intended to provide Randleman Lake Watershed Riparian Buffer Credit as
follows:
1. Converting agricultural land uses within riparian areas to non-agricultural land uses by
placing a perpetual conservation easement around riparian areas along viable streams in
accordance with 15A NCAC 02B .0703 (g).
2. Planting hardwood trees and shrubs on a Restoration Site as defined in 15A NCAC 02B
.0295(b) adjacent to viable streams.
3. Diffused flow will be maintained onsite to the maximum extent practicable. The Buffer
Interpretation/Clarification Memo 9 2008-019 may be applied where maintenance of
diffuse flow onsite is unattainable (Reference 2).
H. The Bank Parcel submitted for review under this Instrument is anticipated to begin construction of
restoration activities in Spring 2023.
V. PRE -CONSTRUCTION DOCUMENTATION
Bank Parcel Development Package
A. The Bank Parcel Development Package (BPDP) submitted under this Instrument shall be
submitted to DWR for review and must be approved by DWR prior to any construction on the
Bank Parcel. The BPDP must describe any changes that have occurred to the site between the date
of the Site Viability Letter and the date the BPDP is submitted to DWR. The BPDP shall include
detailed information consistent with the sections below concerning; 1) site location (14-digit HUC
is required); 2) existing conditions with current photos; 3) proposed buffer mitigation activities
including a detailed vegetation plan; 4) monitoring and maintenance plans; 5) financial assurances;
6) A Project Credit Table (see Attachment C) showing associated buffer mitigation/nutrient credit
calculations, which shall include credit generation, service area, and accounting as appropriate for
each regulatory authority; 7) stream buffer determination letter from DWR, and 8) Site Viability
Letter from DWR; and 9) service area figure for each mitigation type; and 10) all pertinent
E

information including but not limited to permitting, bank stabilization, culvert removal, installation
of any utilities indirectly or directly affecting the Bank Parcel, endangered or threatened species,
presence of historical sites and an Environmental Data Resources (EDR) report to evaluate
environmental risk associated with the land proposed for the Bank.
B. The Sponsor will obtain all applicable federal, state, and local documentation, permits, or
authorizations needed to construct and maintain the Bank Parcel. This Instrument does not qualify
as, or substitute for, such documentation, permit, or authorization.
C. Any restoration activities or proposed construction within riparian buffers and other riparian areas
on the Bank Parcel to produce Riparian Buffer Credit must be approved by DWR in writing prior
to implementation. The failure of the Sponsor to comply with this requirement may result in a
revised or reduced credit release schedule for the Bank Parcel.
D. Requests for deviation from the approved BPDP must be submitted to DWR in writing. Written
approval from the DWR must be received prior to implementing any deviation from the approved
BPDP.
Property Disposition & Long -Term Management for the Bank Parcel
E. Prior to the release of any credits, the Sponsor shall record permanent conservation easements at
the Randolph County Register of Deeds' office that is sufficient to ensure protection, operation
and maintenance of restored riparian buffers and other riparian areas for the duration specified in
the approved BPDP.
F. The form of the conservation easement shall be consistent with the standards employed by the
State of North Carolina in the protection of restored riparian buffers and riparian areas and shall
be approved by the DWR and USACE prior to the release of any credits.
G. The Sponsor shall not grant additional easements, right of ways, or any other property interest in
or to the project areas, without prior approval from the DWR.
H. The Sponsor agrees to transfer or assign the conservation easement and its interests in perpetuity
to a qualified holder under NC General Statute ("GS") 121-34 et seq. and 170(h) of the Internal
Revenue Code prior to the submittal of the Year 4 Monitoring Report. The holder shall be a land
trust or stewardship program that will hold and enforce the conservation easement and the interests
in perpetuity. The Sponsor shall choose a land trust or stewardship program that is accredited by
the Land Trust Accreditation Commission and/or has been approved by DWR prior to the end of
the fourth -year monitoring period. A land trust must be certified under 501(c)(3) of the Internal
Revenue Code.
In the event the Sponsor is also the owner of the underlying fee interest in the property, the
conveyance of the conservation easement to a land trust or stewardship fund must be arranged at
the outset of the approved BPDP.
5

Financial Assurances for the Bank Parcel
Following approval of the BPDP for the Bank Parcel, the Sponsor shall provide
Performance/Maintenance Bonds from a surety company that is rated no less than an "A" as rated
by A.M. Best, to construct the sites according to the approved BPDPs. It is the Sponsor's
responsibility to confirm that the surety company is rated no less than an "A-" with each annual
bond renewal.
K. The amount of the Performance Bond shall be 100% of the estimated cost for implementation of
the riparian restoration and other related activities for the construction of the Bank Parcel as
described in the approved BPDP. No bond shall be less than $150,000.00 to cover construction
costs.
L. Alternatively, in lieu of posting Performance Bonds, the Sponsor may elect to construct the
projects prior to the first credit releases.
M. For the Bank Parcel, once DWR has released all credits for completion of all the items listed below,
then the Bank Sponsor will be released from its performance obligations under the performance
bond required in Item J and K of this section:
1. Instrument and BPDP approved by DWR, Conservation Easement recorded, Financial
Assurance posted;
2. Mitigation site earthwork and planting and installation of monitoring devices completed;
As -Built Report as described in Section VI has been received by DWR; and
4. DWR has submitted a written approval of the As -Built Report.
N. To comply with this section, DWR must be the Obligee on all performance bonds.
VI. POST CONSTRUCTION DOCUMENTATION
As -Built Report
A. The Sponsor agrees to perform all necessary work, in accordance with the provisions of this
Instrument and corresponding BPDP, to establish, maintain, and monitor Randleman Lake
Watershed Riparian Buffers or other riparian areas until Item B (1) and (2) of Section X have been
satisfied.
B. Within 30 calendar days after completing the establishment of the buffer mitigation areas, the
Sponsor will submit written notification to DWR documenting that all buffer mitigation activities
have been completed. Failure to submit written notification within 30 days may result in a modified
credit release schedule or a delay in the issuance of credit releases. Notification shall include all
of the following:
1. Short summary of activities completed as required per the approved BPDP;
2. Figures representing all riparian restoration activities where applicable;
0

3. Figures representing location of all monitoring plots installed;
4. Detailed planting plan- including type of species planted, density of species planted, and any
modifications to the planting plan from what was approved in the BPDP;
5. Description of how the conservation easement boundaries were marked; and
6. Any major changes to the conservation easement boundary or to the amount of Buffer
Credits from what was proposed in the approved BPDP.
C. The Sponsor will submit an as -built plan and report for the Bank Parcel after completing the
establishment of the riparian buffer mitigation areas. The as -built report will describe any deviation
from the approved BPDP and will document the following:
1. Riparian restoration and planting details and other construction activities that were required
in the BPDP, confirmation that all boundary markers are installed, invasive species control,
confirmation of fence installation (if applicable), monitoring device locations, vegetation
plot locations, and photo point locations..
2. Boundary Survey of the conservation easement area, signed and sealed by a licensed
surveyor, including an inventory of the final mitigation areas for riparian buffer mitigation
credits in both square feet and acres.
3. As -built map of the mitigation area showing where riparian restoration was performed and
any deviations to the Bank Parcel from what was approved in the BPDP.
4. Aerial map of the mitigation area that was included in the approved BPDP.
Financial Assurance for the Bank Parcel Monitoring and Maintenance
D. After completion of the restoration/construction on the Bank Parcel, a Performance/Maintenance
Bond will be secured for 100% of the estimated cost to implement the monitoring and maintenance
plan as described in the approved BPDP and As -Built Report applicable for the site. The Bond
must be from a surety company that is rated no less than an "A" as rated by A.M. Best, and it is
the Sponsor's responsibility to confirm that the surety company is rated no less than an "A" with
annual bond renewals.
E. A Performance/Maintenance Bond shall be secured each year for a minimum of five years, and
until DWR has released all mitigation credits to the Bank Sponsor. Upon receiving a credit release
letter from DWR approving a monitoring report with no contingencies, the bond may be lowered
for that next year's monitoring based on the adjusted cost to complete the monitoring. No bond
shall be less than $100,000 initially, to cover monitoring and maintenance costs.
F. Once DWR has released 100% of all credits for completion of all Bank Parcel milestones described
in Table 3.0 of Section VIII and in the corresponding BPDP, the Bank Sponsor will be released
from its performance obligations under the performance bond required in D and E of this Section.
G. To comply with this section, DWR must be the Obligee on all performance bonds.
7

Monitoring and Maintenance Reports
H. The Sponsor shall monitor the Bank Parcel as described in the BPDP until such time as DWR
determines that the performance standards described below have been met. The monitoring period
shall be a minimum of five consecutive years.
Performance Standards for Vegetation: Native hardwood trees or native hardwood tree and shrub
species should be planted at a density sufficient to provide 260 stems per acre after five years. A
minimum of four (4) native hardwood trees or four (4) native hardwood tree and shrub species
must be planted. No one species shall be greater than 50% of the planted stems. A list of species
for planting will be detailed in the BPDP for approval. Native hardwood tree volunteer species
may be included to meet performance standards as determined by the DWR.
A "stem" means a woody seedling, sapling, shrub or tree, no less than 10 centimeters in height.
K. If the performance standards of the vegetation are not met, supplemental plantings may be
required. Supplemental plantings will be utilized until the required densities have been achieved
and maintained for five years. Bank Parcel maintenance, such as ensuring diffuse flow, managing
invasive species, and pest control will be included in the BPDP.
Monitoring Reports for Riparian Buffer Credit:
L. Reporting criteria of the vegetation shall be based on the Carolina Vegetation Survey (CVS) —
EEP Protocol for Recording Vegetation Level 2 Plot Sampling only version 4.0 or any updated
versions of this protocol in place on the date of acceptance of the BPDP. The Sponsor shall submit
to the DWR an annual monitoring report no later than December 31 of each year for a minimum
of five consecutive years after the first full growing season. This report will describe the conditions
of the Bank Parcel, including an evaluation of the performance standards of the vegetation
contained within the approved BPDP. Reports shall contain the following:
1. A U.S. Geological Survey map showing location of the Bank Parcel;
2. A detailed narrative with supporting photos summarizing the condition of the Bank Parcel
along with any maintenance or remediation performed that year; and
A map, survey, or other figure showing locations of sampling plots, permanent photo
points, location of transects, etc.; and
4. Monitoring data, including specific vegetative counts showing that the trees or tree and
shrub species planted are meeting performance standards and updated photographs; and
5. A copy of the most recent Bank credit/debit ledgers; and
6. Corresponding verification letters from designated local governments upon request; and

7. Corresponding Mitigation Transfer Certificates upon request; and
8. Proof of performance bond renewal to cover the next monitoring year (if applicable)
Contingency Plans/Remedial Actions
M. In the event the Bank Parcel fails to achieve the performance criteria described in this Instrument
and the approved BPDP, the Bank Sponsor shall develop necessary contingency plans in
coordination with the DWR and implement appropriate remedial actions for the Bank Parcel and
the Bank. Depending on the degree of remedial actions required, the DWR may modify the
monitoring period.
VIL CALCULATION OF MITIGATION CREDITS
Riparian Buffer Credits
A. All Riparian Buffer Credits shall be determined based on the ratios and percentages provided in
15A NCAC 02B .0295(m) and (n) following the guidance provided in the Clarified Procedures
for Calculating Buffer Mitigation Credits and Nutrient Offset Credits letter issued by the DWR,
see reference 95, including the most recent Project Credit Table Template provided online (see
Appendix Q.
B. Riparian buffer restoration on the Bank Parcel, as described in 15A NCAC 02B .0295(n) and (o)(3)
and defined in 15A NCAC 02B .0295(b) may be used for Riparian Buffer Credit.
C. In addition to traditional riparian restoration, the Project will also incorporate the alternative buffer
mitigation option: Mitigation on ephemeral channels, as outlined in 15A NCAC 02B .0295 (o) (7).
D. Riparian Buffer Credit is defined as one (1) buffer credit per one square foot or 43,560 buffer
credits per one acre.
9

VIII. CREDIT RELEASE SCHEDULE
A. Upon submittal of all appropriate documentation by the Sponsor, and subsequent approval by
DWR, it is agreed that the mitigation credits associated with the Bank Parcel will become available
for sale to a third party in accordance with the Credit Release Schedule below in Table 3.0.
Table 3.0 - Credit Release Schedule for Riparian Buffer Credits
% Credit
Available
Task
Project Milestone
for
Sale
Instrument and BPDP Approved by DWR, Conservation Easement
20
1
Recorded* and Financial Assurance Posted
All Riparian Earthwork & Mitigation Activities, Planting and
Installation of Monitoring Devices completed, easement boundaries
20
2
adeguately marked, all applicable permits obtained. A site visit
erf`ormed b DWR is required for this task
3
Monitoring Financial Assurance Posted and Approval of As -Built Report
10
4
Monitoring Report #I: Approved by the DWR** & Financial Assurance Posted
10
5
Monitoring Report 92: Approved by the DWR** & Financial Assurance Posted
10
6
Monitoring Report 93: Approved by the DWR** & Financial Assurance Posted
10
(1) of Section IX in this Instrument has been completed and approved by
ItWR.
5
No remaining credits will be released until Task 7 has been satisfied
8
Monitoring Report 94: Approved by the DWR** & Financial Assurance Posted
5
Monitoring Report #5: Approved by the DWR** and final site visit by DWR
9
has been conducted
10
Total
100%
* For specification, please see Section VIII in this Instrument
** DWR Approval provided upon a determination that the site is meeting performance standards contained within the
approved BPDP
B. DWR may modify the credit release schedules based on the information submitted or the order in
which required information is received. DWR will notify the Sponsor of any modification to the
credit release schedule. Any major deviations to the Bank Parcels that were not authorized in
writing by DWR prior to implementation may affect the amount of riparian buffer credits that will
be generated by the Bank Parcels.
C. DWR may consider a Credit Release Schedule for a Bank Parcel based on the extent of change
between current onsite conditions and proposed post construction conditions.
10

IX. PROCEDURE FOR DEBITING AND CREDITING
Credit Ledgers
A. The Bank Sponsor shall maintain a credit ledger for the bank parcel under this Instrument: The
credit ledger shall provide the accounting for Riparian Buffer Credit in square feet and acres.
B. The credit ledger shall be submitted on a separate 8 '/2 inch by 11-inch spreadsheet with legible
font style and font size. The ledger shall be submitted using the templates provided in Attachment
B of this Instrument or any updated versions to these templates as provided by DWR.
Credit Processing
C. Credits must be calculated for the Bank Parcel using the most recent Project Credit Table template
(see attachment C), which is referenced in the guidance provided in the Clarified Procedures for
Calculating Buffer Mitigation Credits and Nutrient Offset Credits letter issued by the DWR, see
reference 9 3.
D. Riparian Buffer Credits generated on this Bank Parcel will be used to provide mitigation for
authorized buffer impacts within the Randleman Lake Watershed according to 15A NCAC 02B
.0295(g).
E. The Bank Sponsor shall obtain written verification of buffer mitigation required from the delegated
local government in the Randleman Lake Watershed or DWR prior to debiting Riparian Buffer
Credits from the individual Bank Parcel.
F. All credit and debit transactions for the bank parcel under this Instrument shall be accurately
depicted in the credit ledgers. The Bank Sponsor shall provide DWR up-to-date credit ledgers for
the Bank by the tenth (10t') of each month. At a minimum and upon request, DWR shall receive a
hard copy of updated credit ledgers along with the corresponding Mitigation Credit Transfer
Certificates and all corresponding letters from the designated or delegated local governments or
DWR where applicable once a year. Notification of all credit sales shall be provided to DWR until
all credits that have been released have been sold.
Mitigation Credit Transfer Certificates
G. All credit sales will include a Mitigation Credit Transfer Certificate ("Certificate") that is required
to be provided to the buyer of Riparian Buffer credits, that will include, at a minimum, the
following information:
Bank Details: (1) Bank Sponsor Name, (2) Bank Parcel as it appears in this Instrument, (3)
DWR project number for the BPDP as it appears in Table 1.0.
2. Credit Details: (1) date of receipt, (2) identify if full or partial payment, (3 — when
applicable) amount of nitrogen credits purchased in pounds and confirmation from the
designated local government of the amount required, and (4 — when applicable) amount of
phosphorus credits purchased in pounds and confirmation from the designated local
11

government of the amount required, and (5 — when applicable) amount of Riparian Buffer
Credits purchased in square feet and the confirmation from DWR or the local government
of the amount required.
3. Permitted Project Details: (1) project name as it appears on DWR or local government
permits and/or certifications, (2) 14-digit HUC, (3) the subwatershed within the Randleman
Lake Watershed, (4-when applicable) nutrient strategy applicable to the project, (5 —when
applicable) designated local government requiring Riparian Buffer Credits, and/or (6)
DWR authorization number or delegated local government requiring Riparian Buffer
Credits for this project.
H. If the DWR determines that the Bank is operating at a deficit (e.g. the Sponsor is closing on sales
and/or transferring credit that is not available), or the Bank is selling credits out of compliance
with statutes, rules or this Agreement, the sale/transfer of credits will immediately cease, and the
DWR, in consultation with the Sponsor, will determine what remedial actions are necessary.
X. BANK PARCEL CLOSURE
A. Bank Parcel Closure shall be identified as the event when the Sponsor is relieved of all of its
responsibilities to the Bank Parcel and there are no Riparian Buffer Credits left to sell.
B. Bank Parcel Closure shall commence only after all of the following events have occurred:
1. Transfer or assign the conservation easement and all of its interests, in perpetuity, to a land
trust or stewardship program as described in Section V of this Instrument.
2. All five years of monitoring completed, and all monitoring reports submitted and approved
by DWR.
All credits have been released and debited and updated ledgers showing zero credit
balances have been submitted and approved by DWR.
XI. GENERAL PROVISIONS FOR THE BANK PARCEL
A. Upon the presentation of proper credentials, and during normal business hours, the Sponsor and
the landowner shall grant permission to the Director of DWR, or authorized representative of the
Director of DWR, to enter the property containing the Bank Parcel.
B. Amendments: This Banking Instrument may be amended or modified only with written approval
of all signatory parties, including the USACE if it is applicable to the amendment.
C. Any transfer of the Sponsor's rights or obligations outlined in this Instrument or any other
agreement referenced in this Instrument to a third party must be approved by DWR prior to the
transfer.
D. Force Majeure: After 100% of all of the credits have been released according to the credit release
schedule in Section VIII and confirmation has been received by the DWR that the Conservation
12

Easement has been successfully assigned in compliance with Item H of Section V, the Sponsor
will not be responsible for Bank failure that is attributed to natural catastrophes including but not
limited to flood, drought, disease, regional pest infestation, etc. that are beyond the control of the
Sponsor.
E. However, if an event occurs before 100% of all of the credits have been released according to the credit
release schedule in Section VIII, then the Sponsor shall take remedial action to restore the property
to its condition prior to the event, in a manner sufficient to provide adequate mitigation to cover
credits that were sold prior to the occurrence of the event. Such remedial action shall be taken by
the Sponsor only to the extent necessary and appropriate, as determined by DWR and the Sponsor.
DWR must concur in writing that a force majeure event has occurred for this provision to apply.
F. Oversight: Actions taken by DWR may include, but are not limited to, the following:
1. Site visits,
2. Issuance of Site Viability Letters,
3. BPDP review and approval of items listed in Section V of this Instrument,
4. As -Built Report review, and approval of items listed in Section VI of this Instrument,
Monitoring Report review, and approval of items listed in Section VI of this Instrument,
6. Credit Ledger review and approval of items listed in Section IX of this Instrument,
7. Certificate review of items listed in Section IX of this Instrument and cross analysis to
credit ledgers and,
8. Information requests, file reviews and audits
G. Reports, ledgers, files and other information shall be made available to DWR upon request, unless
otherwise specified in this or any other document.
H. Validity of the Banking Instrument: This Instrument will become valid on the date of the last
party's signature.
L Specific Language of Banking Instrument Shall Be Controlling: To the extent that specific
language in this document changes, modifies, or deletes terms and conditions contained in those
documents that are incorporated into the Instrument by reference, and that are not legally binding,
the specific language within the Instrument shall be controlling.
Any disputes over decisions regarding this Instrument, shall be referred to the Director of DWR
for a decision. The Director's decision is subject to review as provided in Articles 3 and 4 of G.S.
150B.
13

K. This Agreement shall be binding upon the parties and is entered into knowingly, intelligently, and
voluntarily.
L. Notices: All notices and other communications which may be or are required to be given or made
by any party to the other shall be in writing and shall be deemed to have been properly given and
received on the date delivered in person or deposited in the United States mail, registered or
certified, electronic mail, return receipt requested, to the addresses set out below, or at such other
addresses as specified by written notice delivered in accordance herewith.
If to Bank Sponsor: Environmental Banc & Exchange, LLC
Attention: Mr. Bradley Breslow
3600 Glenwood Avenue Suite 100
Raleigh, North Carolina 27612
BBreslow(ares.us
If to DWR: NC Division of Water Resources — 401 & Buffer Permitting Branch
Attn: Nutrient Offset and Buffer Banking Coordinator
1617 Mail Service Center
Raleigh, NC 27699-1617
14

M. Applicable Law: This Agreement shall be construed under the laws of the State of North Carolina.
ENVIRONMENTAL BANC & EXCHANGE, LLC
By:
(Print)
(Signature)
Title:
Date:
NORTH CAROLINA DEPARTMENT OF ENVIRONMENTAL QUALITY -DIVISION OF WATER
RESOURCES
By:
(Print)
(Signature)
Title:
Date:
15

Attachments
A — Division of Water Resources Authority Document
B — Randleman Lake Watershed Buffer Ledger Template
C- Project Credit Table (example)

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