20201940 Ver_2 Credit Release Task 17-Rosewood_20220819

North Carolina Department of Environmental Quality Division of Water Resources
512 North Salisbury Street 1611 Mail Service Center Raleigh, North Carolina 27699-1611
919.707.9000

August 19, 2022

Wildlands Holdings III, LLC DWR Project #: 2020-1940v2
Attn: John Hutton Wayne County
(via electronic mail: [e-mail] )

Re: Black Dirt & Rosewood Umbrella Mitigation Banking Instrument (UMBI)
Rosewood Bank Parcel Credit Release – Tasks 1 & 7

Dear Mr. Hutton,

On July 7, 2022, the Division of Water Resources (DWR) approved a Bank Parcel Development
Package (BPDP) for the above-referenced site under the terms and conditions of the Wildlands
Holdings III, LLC (Wildlands) Black Dirt & Rosewood Umbrella Mitigation Banking Instrument
(UMBI) to establish a nutrient offset and buffer mitigation bank. DWR received a performance bond
(#107652731) issued to Wildlands from Travelers Casualty and Surety Company of America, in the
amount of $150,000, to cover performance obligations for the construction of the subject site. The
term of this bond will remain in effect until DWR has provided a written approval of the As-Built
Report.

On July 27, 2022, the DWR received recorded conservation easements and corresponding plats for
the subject site. Additionally, Wildlands provided confirmation that the conservation easement s for
the subject site have been successfully assigned to Unique Places To Save (UPS). UPS is a 501(c)(3)
non-profit corporation and has been approved by DWR as a long-term steward for this mitigation
bank.

In accordance with the UMBI, signed on February 15, 2022, the following Project Milestones have
been met and the corresponding credits shall be released:

Task/Milestones Credit

1) Instrument and BPDP Approved by DWR, Conservation Easement Recorded, 20%
& Financial Assurance Posted

7) Item B (1) of Section X in the Instrument (assign the easement to stewardship) 5%
has been completed and approved by DWR

TOTAL: 25%

Rosewood Site
Wildlands
August 19, 2022

Page 2 of 2

By copy of this correspondence, DWR confirms that you have satisfied the above requirements for
the above-referenced tract and the following credits are released:

 25% of the Neuse buffer Restoration credits (0.25 x 717,568.750 ft2 = 179,392.188 ft2) are
now available to sell.
 25% of the Nitrogen nutrient offset credits (0.25 x 57,914.395 lb-N = 14,478.599 lb-N) are
now available to sell.

Please note that nutrient offset credits generated at this site must be used for impacts in HUC
03020201 of the Neuse River Basin excluding the Falls Lake Watershed pursuant to 15A NCAC
02B .0703, which became effective on April 1, 2020. Additionally, the riparian buffer credits
must be used for impacts in the Neuse River Basin in accordance with guidelines in the
Consolidated Buffer Mitigation Rule, 15A NCAC 02B .0295, which became effective on
November 1, 2015.

Please use the Credit Ledger Templates provided in the approved UMBI to track and report credit
availability for the Rosewood Mitigation Bank. Upon receiving this correspondence, please submit
two (2) credit ledgers to DWR reflecting the available credits released for each mitigation type
(Buffer Restoration, Nitrogen Nutrient Offset).

Please feel free to call me at [phone] if you have any questions regarding this
correspondence.

Sincerely,

Katie Merritt
401 & Buffer Permitting Branch

cc:File Copy (Katie Merritt)
Ashley Yarsinske (Wildlands) – via electronic mail