20211422 Ver 1_Dutch Farms DWR MBI for PN_20230103

AGREEMENT TO ESTABLISH THE DM DUTCH FARMS MITIGATION BANKING
INSTRUMENT IN THE HAW RIVER SUBWATERSHED FOR NUTRIENT OFFSET
AND RIPARIAN BUFFER MITIGATION CREDITS PURSUANT TO THE JORDAN
LAKE NUTRIENT MANAGEMENT STRATEGY
I. PREAMBLE 3
II. LOCATION AND GEOGRAPHIC SERVICE AREA 3
III. AUTHORITIES 4
IV. ESTABLISHMENT OF BANK PARCEL 4
V. PRE -CONSTRUCTION DOCUMENTATION 6
VI. POST CONSTRUCTION DOCUMENTATION 8
VII. CALCULATION OF CREDITS FOR THE BANK PARCEL 11
VIII.CREDIT RELEASE SCHEDULE 14
IX. PROCEDURE FOR DEBITING AND CREDITING 15
X. BANK PARCEL CLOSURE 17
XI. GENERAL PROVISIONS FOR THE BANK PARCEL 17
ATTACHMENTS
A — Division of Water Resources Authority Document
B — Delivered Credit Yield Table for Jordan Subwatersheds dated December 20, 2012
C — Ledger Templates
D — Project Credit Table Template (example)
REFERENCES
1. Nutrient Offset Credit Trading Rule:
http://reports.oah.state.nc.us/ncac/title%2015a%20-
%20env i ronm ental %20 qual i ty/chapter%2002%20-
%20environm ental%20management/subchapter%20b/ 15 a%20ncac%2002b%20.0703.pdf
2. Riparian Buffer Mitigation Rule:
http://reports.oah.state.nc.us/ncac/title%2015a%20-
%20environmental%20qual ity/chapter%2002%20-
%20environmental%20management/subchapter%20b/ 15 a%20ncac%2002b%20.0295.pdf
3. NC Session Law 2019-86 "Nutrient Offset Credits":
https://www.ncleg.gov/sessions/2019/bills/house/pdf/H812v3.pdf
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4. Clarified Procedures for Calculating Buffer Mitigation Credits and Nutrient Offset Credits
(November 2019):
https ://fi l e s. nc . gov/ncdeq/Water%20 Qual ity/Surface%20 W ater%20Protecti on/40 1/Mitigation
/Issues---Resolutions-Ver-1.0-buffer-mitigation-nutrient-offset.pdf
5. NCDWR — Methodology and Calculations for Nutrient Reduction on the Bank Parcel:
https ://files.nc.gov/nc deq/W ater%20Quality/Planning/NPU/Nutrient%20Offset%20Rule/Ag-
Buffer-Credit.pdf
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I. PREAMBLE
This DM Dutch Farms Mitigation Banking Instrument ("Instrument") regarding the
establishment, use, operation, and maintenance of the Dutch Farms Nutrient Offset and
Buffer Mitigation Bank Parcel ("Bank Parcel"), to provide Jordan Lake Watershed
Riparian Buffer mitigation credits ("Riparian Buffer Credits") and Jordan Lake Nutrient
Strategy nutrient load reduction credit ("Nutrient Offset Credits") is made and entered into
by and among Davey Resource Group, Inc. ("DRG") 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 15A NCAC 02B
.0703 and Consolidated Mitigation Rule 15A NCAC 02B .0295, which became effective
on November 1, 2015, see Attachments and References.
The purpose of this Bank is:
A. To restore, enhance, and preserve riparian vegetation adjacent to mitigated streams
with the intent to improve water quality within the Haw River Subwatershed of the
Jordan Lake Watershed.
B. To convert agricultural land uses within riparian areas adjacent to mitigated streams
and ponds, 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 nutrient reduction and sell any resulting Riparian Buffer
Credits and/or Nutrient Offset Credits to third parties in the Haw River
Subwatershed of the Jordan Lake Watershed, for development (both existing and
proposed) or to offset NPDES-permitted wastewater nutrient sources requiring
such mitigation or offsets.
II. 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 and/or Nutrient Offset Credits for
impacts due to development activities.
B. The GSA for this instrument is limited to the Haw River Subwatershed of Jordan Lake
watershed as defined in rule 15A NCAC 02B .0262.
C. Sale or transfer of Riparian Buffer Credits shall be limited to Haw River Subwatershed of
the Jordan Lake Watershed, as defined in rule 15A NCAC 02B .0262, unless otherwise
authorized by the DWR or delegated local government in accordance with 15A NCAC 02B
.0295.
D. Sale or transfer of delivered Nutrient Offset Credits shall also be limited to Haw River
Subwatershed of the Jordan Lake watershed, as defined in rule 15A NCAC 02B .0262 and
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in accordance with 15A NCAC 02B .0703, unless otherwise authorized by the DWR in
accordance with Session Law (S. L.) 2019-86.
E. The following table provides site -specific details of the Bank Parcel proposed under this
Instrument, which is within the Haw River Subwatershed of the Jordan Lake Watershed (8-
digit HUC 03030002);
Table 1. Site -specific Details
Bank
County
14-Digit USGS
DWR
Project
Named
Primary
Parcel
HUC
Project #
Location
Receiving
Land Use/s
Name
Stream
Dutch
Farms
Guilford
03030002040010
20211422
vl
35.931951,
-79.693365
Big
Alamance
Creek
Agriculture;
currently in
use as
livestock
pasture
III. AUTHORITIES
A. The Bank Parcel will be used to provide Riparian Buffer Credit and/or Nutrient Offset 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 Jordan Lake Nutrient Sensitive Waters Management Strategy.
C. The selling of credits generated from the Bank Parcel approved under this Instrument, shall be
consistent with approved State statutes and rules for the Jordan Lake Nutrient Sensitive Waters
Management Strategy.
D. Mitigation activities and nutrient load reductions proposed under this Instrument and
corresponding Buffer Mitigation & Nutrient Offset Plan (Plan) to generate Riparian Buffer
Credits and Nutrient Offset Credits shall be consistent with State statutes and rules for the
Jordan Lake Nutrient Sensitive Waters Management Strategy that are in place at the time a
complete Plan is submitted to DWR.
IV. ESTABLISHMENT OF BANK PARCEL
A. In accordance with 15A NCAC 02B .0295 and 15A NCAC 02B .0703, 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 Riparian Buffer Credits and Nutrient Offset
Credits but is a preliminary review of the Bank Parcel that details and confirms existing land -
use conditions, defines the riparian sites (Enhancement, Preservation, or Restoration), and
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identifies features (streams, ditches, ponds, etc.) that meet general criteria to be suitable to
generate Riparian Buffer Credits and Nutrient Offset 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. Site Viability Letter Details
Bank Parcel
NC DWR Site Visit
Viability Letter
Received
Viability Letter
Expiration Date
Dutch Farms
July 28, 2021
August 27, 2021
August 27, 2023
B. A valid Site Viability Letter is required prior to submittal of the Plan. 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 Plan 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 Plan 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 Plan are
provided in Section V.
D. This Bank Parcel is slated to be developed in conjunction with the DM Cape Fear Umbrella
Bank, and the Dutch Farms Mitigation Site, United States Army Corps of Engineers (USACE)
Action ID # SAW-2021-01071, for stream and wetland mitigation. The Stream and Wetland
Mitigation Plan associated with this Bank Parcel has been submitted to the Interagency Review
Team (IRT) for review and approval.
E. The Plan submitted under this instrument will be placed on public notice and made available
for public commenting for 15 calendar days.
F. Riparian Buffer Credits on this Bank Parcel will be generated along stream channels that are
proposed for stream mitigation. Stream Mitigation Plans will be submitted under the DM Cape
Fear Umbrella Bank referenced in "D" in this section. Additionally, all activities conducted
within riparian buffers and adjacent riparian areas for purposes of generating Riparian Buffer
Credits or Nutrient Offset Credits will be conducted in concurrence with stream and wetland
mitigation activities. Riparian Buffer Credit may be achieved through restoration,
enhancement and preservation of DWR riparian buffers as they are defined in 15A NCAC 02B
.0267, 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. The viability of features to generate
riparian buffer credits is provided in the Site Viability Letter for the Bank Parcel and referenced
in Table 2.0 of this Instrument.
G. The Bank Parcel is intended to provide Jordan Lake Riparian Buffer Credit as follows:
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1. Planting hardwood trees and shrubs on a Restoration Site as defined in 15A NCAC 02B
.0295(b) adjacent to mitigated streams.
2. Maintaining a Preservation Site as defined in 15A NCAC 02B .0295(b) by placing a
conservation easement around riparian areas adjacent to mitigated streams as allowed by
15A NCAC 02B .0295 (o).
3. Diffused flow will be maintained onsite to the maximum extent practicable.
4. The Buffer Interpretation/Clarification Memo #2008-019 may be applied where
maintenance of diffuse flow onsite is unattainable.
H. Nutrient Offset Credit may be achieved on this Bank Parcel through restoration of the riparian
areas, where agriculture was the predominant land use. The width of the restoration area begins
at the most landward limit of the top of bank or the rooted herbaceous vegetation and extends
landward a minimum of 50 feet and a maximum of 200 feet on all sides of the surface waters.
The viability of features to generate nutrient offset credits is provided in the Site Viability
Letter for the Bank Parcel and referenced in Table 2.0 of this Instrument.
I. The Bank Parcel is expected to provide Nutrient Offset Credits in accordance with 15A NCAC
02B .0703 as follows:
1. Converting land uses within riparian areas that have historically been maintained as
agricultural fields, to a diverse forest by placing a perpetual conservation easement around
riparian areas adjacent to mitigated streams.
2. Planting hardwood trees and shrubs on a Restoration Site as defined in 15A NCAC 02B
.0295(b) adjacent to mitigated streams where the landuse was historically an agricultural
field.
J. The Bank Parcel submitted for review under this Instrument is anticipated to begin stream
mitigation construction in November 2022.
V. PRE -CONSTRUCTION DOCUMENTATION
Buffer Mitigation Plan
A. The Plan 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 Plan must describe any
changes that have occurred to the site between the date of the Site Viability Letter and the date
the Plan is submitted to DWR. The Plan 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 and nutrient offset activities including a
detailed vegetation Plan; 4) monitoring and maintenance plans; 5) financial assurances; 6) a
Project Credit Table (see Attachment D) showing associated buffer mitigation/nutrient offset
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
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8) Site Viability Letter from DWR; 9) a figure depicting the proposed stream and wetland
mitigation areas; and 10) service area figure for each mitigation type proposed under this
Instrument and 11) all pertinent 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 Parcel.
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 the streams, riparian buffers, and
other riparian areas on the Bank Parcel to produce Riparian Buffer Credit or Nutrient Offset
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. All restoration activities must be performed in concurrence with
any stream mitigation activities and not before.
D. Requests for deviation from the approved Plan must be submitted to DWR in writing. Written
approval from the DWR must be received prior to implementing any deviation from the
approved Plan.
Property Disposition & Long -Term Management for the Bank Parcel
E. Prior to the release of any credits, the Sponsor shall record a permanent conservation easement
at the Guilford 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 Plan.
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 USA CE 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 and the USACE.
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 first credit release. 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 first
credit release. A land trust must be certified under 501(c)(3) of the Internal Revenue Code.
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I. 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 Plan.
Financial Assurances for Bank Parcel Development
J. Following approval of the Plan 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 plans. 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 Plan. 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. 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 Buffer Plan approved by DWR, Draft Stream Mitigation Plan approved by
IRT, Conservation Easement Recorded and Assigned according to Item B (1) of Section X
in this Instrument has been completed and approved by DWR, and Financial Assurance
posted;
2. All Riparian Earthwork, Planting, and Installation of Monitoring Devices Completed,
easement boundaries adequately marked, all applicable permits obtained, site visit
performed by DWR;
3. Monitoring Financial Assurance Posted and Approval of As -built Report
N. To comply with this section, DWR must be the Obligee on all performance bonds.
VI. POST CONSTRUCTION DOCUMENTATION FOR THE BANK PARCEL
As -Built Report
A. The Sponsor agrees to perform all necessary work, in accordance with the provisions of this
Instrument and corresponding Plan, to establish, maintain, and monitor Jordan Lake 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 nutrient offset areas, the
Sponsor will submit written notification to DWR documenting that all nutrient offset activities
have been completed. Failure to submit written notification within 30 days may result in a
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modified credit release schedule or a delay in the issuance of credit releases. Notification shall
include all the following:
1. Short summary of activities completed as required per the approved Plan;
2. Figures representing all riparian restoration, riparian enhancement and riparian
preservation activities where applicable;
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 Plan;
5. Description of how the conservation easement boundaries were marked;
6. Any major changes to the conservation easement boundary or to the amount of Riparian
Buffer Credits and/or Nutrient Offset Credits from what was proposed in the approved
Plan.
C. The Sponsor will submit an as -built Plan and report for the Bank Parcel after completing the
establishment of the buffer mitigation and nutrient offset areas and when all stream and
wetland mitigation activities have commenced. The as -built report will describe any deviation
from the approved Plan and will document the following:
1. Riparian restoration and planting details, invasive species control, confirmation of fence
installation (if applicable), monitoring device locations, vegetation plot locations, photo
point locations, as appropriate and confirmation that all boundary markers are installed.
2. Provide confirmation that the construction of all stream and wetland mitigation activities
has been completed.
3. Boundary Survey of the conservation easement area, signed and sealed by a licensed
surveyor, including an inventory of the final areas for riparian buffer mitigation and
nutrient offset in both square feet and acres.
4. As -built map of the buffer mitigation and nutrient offset areas showing where riparian
restoration, riparian enhancement and/or riparian preservation were performed and any
deviations to the Bank Parcel from what was approved in the Plan.
5. As -Built map of the stream and wetland mitigation areas.
6. Aerial map of the areas that were included in the approved Plan.
Financial Assurance for 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 Plan and As -Built Report
applicable for the site. The Bond must be from a surety company that is rated no less than an
9

"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 5.0 of Section VIII and in the corresponding Plan, the Bank Sponsor will
be released from its performance obligations under the performance bond required in C and D
of this Section.
G. To comply with this section, DWR must be the Obligee on all performance bonds.
Monitoring and Maintenance Reports
H. The Sponsor shall monitor the Bank Parcel as described in the Plan 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.
I. 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 Plan for approval. Native hardwood tree volunteer
species may be included to meet performance standards as determined by the DWR.
J. A "stem" means a woody seedling, sapling, shrub, or tree, no less than 10 centimeters in height
and shall apply, on the Bank Parcels, to the minimum height that a planted tree or shrub shall
be at initial planting. Volunteer stems that are less than 10 centimeters shall not be quantified
and included in the annual vegetation data included with the monitoring reports.
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 Plan.
L. Monitoring Reports for Riparian Buffer Credit or Nutrient Offset Credit: 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 Plan. 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. Vegetation data shall
not be collected prior to late August of each year. This report will describe the conditions of
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the Bank Parcel, including an evaluation of the performance standards of the vegetation
contained within the approved Plan. 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
3. 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 and height data showing that the trees
or tree and shrub species Planted are meeting performance standards with 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 Plan, 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.
VII. CALCULATION OF 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 # 4, including the most recent Project Credit Table Template (see
Appendix D) provided online.
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. Some
riparian restoration areas may also be used for Nutrient Offset Credit as indicated in the Site
Viability Letter.
C. Riparian buffer preservation on the Bank Parcel, as described in 15A NCAC 02B .0295 (o)
and defined in 15A NCAC 02B .0295 (b), can only be used for Riparian Buffer Credit.
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D. Riparian Buffer Credit is defined as one (1) buffer credit per one square foot or 43,560 buffer
credits per one acre.
Nutrient Offset Credits
E. The square footage of Nutrient Offset Credits on the Bank Parcel submitted under this
Instrument will be determined by applying the applicable ratio as provided in 15A NCAC
02B .0295(m) for a Restoration Site following the guidance provided in the Clarified
Procedures for Calculating Buffer Mitigation Credits and Nutrient Offset Credits issued by
the DWR, see reference # 4, including the most recent Project Credit Table Template (see
Appendix D) provided online by DWR. All riparian areas proposed for Nutrient Offset
Credits must be a minimum of 50 feet from the top of the banks along viable streams or
viable ditches on land noted in a Site Viability Letter as previous agricultural land.
F. Nutrient Offset Credits cannot be achieved through the preservation activities performed on
this Bank Parcel.
G. Nutrient Offset Credits cannot be achieved through the enhancement activities performed on
this Bank Parcel that are generated under 15A NCAC 02B .0295 (o)(6).
H. Nutrient Abatement of Restored Riparian Area/Buffers within landuse determined to be
agricultural land: The Sponsor and DWR agree to the following:
a. Pursuant to the Jordan Trading Rule Item 15A NCAC 02B .0273 (2)(a), load reductions
eligible for credit are only those that exceed reduction needs calculated by applying the
strategy subwatershed percentage reduction goals as provided in 15A NCAC 02B .0262
(5). For the Haw River Subwatershed, this requirement results in a reduction of credits
yielded per acre for restored riparian buffers when compared with the credit given in other
river basins. Table 3.0 below lists the generated credit per acre of restored riparian buffer
for the Haw River Subwatershed.
Table 3. Generated credit yields for forest buffer restoration in Haw River Subwatershed
Credit Generated (lbs/30 yrs/ac)
Jordan Subwatershed
Nitrogen
Phosphorus
Haw River
2,249.360
143.810
As required under Jordan Trading Item 15A NCAC 02B .0273(d)(i), the party seeking to sell
credit must account for differences in instream nutrient losses between the location of the
reduction need and excess loading reduction being delivered to the affected area of Jordan
Lake. Attachment B produced the delivered Jordan Lake Total Nitrogen (TN) and Jorden Lake
Total Phosphorus (TP) credit yields per acre of buffer restoration by each Jordan Lake 14-digit
HUC subwatershed.
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a. Delivered credits are calculated by applying the delivery factors in Table 4.0 below and the
acreage of riparian restoration to the generated credit yields from Table 3.0 above. The
delivery factors for the Bank Parcel under this Instrument for Total Nitrogen (TN) and
Total Phosphorus (TP) are provided in Table 4.0 below using Attachment B for reference.
The amount of delivered credits for each Bank Parcel will be detailed in the Plan for the
Bank Parcel.
Table 4. Delivery Factors
Delivery Factors & Credit Conversion Ratio'
Bank Parcel
TN
TP
Dutch Farms
30%
64.5517 square feet/pound
14%
2,163.569 square feet/pound
1Clarified Procedures for Calculating Buffer Mitigation Credits and Nutrient Offset Credits
letter issued by DWR in November 2019
b. The Bank Sponsor shall report the pounds of nitrogen and phosphorus credit per acre of
restored riparian buffer in the Bank Parcel's Plan for both credits generated at the site of
the nutrient reduction activity and the credit delivered to Jordan Lake.
J. The Sponsor and DWR agree the methodology and calculations for determining nitrogen and
phosphorus reduction, associated with restoration of riparian areas as described in Section IV
of this Instrument, shall be fixed as part of the approval of this Instrument, with the fixed
amount not changing during the Plan review or credit release schedule for the bank parcel. For
further details on the approved method and calculations for determining nutrient reductions
associated with the riparian restoration on this Bank Parcel refer to the NCDWR -
Methodology & Calculations for Nutrient Reductions document found in reference # 5.
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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 5.0.
Table 5. Credit Release Schedule for Riparian Buffer Credits and Nutrient Offset Credits
Task
Project Milestone
% Credit
Available
for Sale
1
Instrument and Buffer Plan Approved by DWR, Draft Stream
Mitigation Plan Approved by IRT, Conservation Easement Recorded
and Assigned according to Item B (1) of Section X in this Instrument
has been completed and approved by DWR. * and Financial Assurance
Posted
25
2
All Riparian Earthwork, Planting and Installation of Monitoring
Devices Completed, Easement Boundaries are adequately marked, and
all applicable permits obtained. A site visit by DWR is required for this
task.
20
3
Monitoring Financial Assurance Posted and Approval of As -Built
Report
10
4
Monitoring Report #1: Approved by the DWR** & financial assurance
renewed
10
5
Monitoring Report #2: Approved by the DWR** & financial assurance
renewed
10
6
Monitoring Report #3: Approved by the DWR** & financial assurance
renewed
10
Monitoring Report #4: Approved by the DWR** & financial assurance7
renewed
5
8
Monitoring Report #5: Approved by the DWR** and final site visit by
DWR 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 Plan
B. DWR may modify credit release schedules based on information submitted or the order in
which required information is received. DWR will notify Sponsor of any modification to the
credit release schedule.
C. Any major deviations to the Bank Parcel that were not authorized in writing by DWR prior to
implementation may affect the amount of nutrient offset credits that will be generated by the
Bank Parcel.
14

D. The Sponsor must initiate implementation of the approved Plan for the site under this
Instrument in concurrence with all stream and wetland mitigation activities proposed in the
approved Stream and Wetland Mitigation Plan referenced in Item D of Section IV of this
Instrument.
IX. PROCEDURE FOR DEBITING AND CREDITING
Credit Ledgers
A. The Bank Sponsor shall maintain a credit ledger for each mitigation type for the bank parcel
under this Instrument: The credit ledger shall provide the accounting for Riparian Buffer Credit
in square feet and acres and Nutrient Offset Credits in pounds and square feet.
B. Each credit ledger shall be submitted on a separate 8 1/2 inch by 11-inch spreadsheet with legible
font style and font size. The ledger shall be submitted using the templates provided in
Attachment C of this Instrument or any updated versions to these templates as provided by
DWR.
Credit Processing
C. Riparian Buffer Credits generated on this Bank Parcel will be used to provide mitigation for
authorized buffer impacts within the Haw River Subwatershed of the Jordan Lake Watershed
according to 15A NCAC 02B .0295(g).
D. Nutrient Offset Credits generated on this Bank Parcel will be used to offset nitrogen and
phosphorus nutrient loads within the Haw River Subwatershed of the Jordan Lake, in
accordance with 15A NCAC 02B .0703.
E. Available Riparian Buffer Credits (credits that have been released by DWR but not sold by the
Sponsor) that are generated from riparian restoration on land designated as agricultural land,
and that meet criteria for nutrient offset credits as outlined in Section VII of this Instrument,
the Site Viability Letter, and the corresponding Plan, can be converted from Riparian Buffer
Credits to Nutrient Offset Credits upon written approval from DWR. Once a credit has been
converted to another credit type, the transaction is permanent, and the credit cannot be
converted again.
F. Available Nutrient Offset Credits (credits that have been released by DWR but not sold by the
Sponsor) that are generated from riparian restoration within 0-100' from tops of banks and
meet criteria for riparian buffer credits as outlined in Section VII of this Instrument, the Site
Viability Letter, 15A NCAC 02B. 0295 and the corresponding Plan, can be converted from
Nutrient Offset Credits to Riparian Buffer Credits upon written approval from DWR. Once a
credit has been converted to another credit type, the transaction is permanent, and the credit
cannot be converted again.
15

G. Credit conversions must be calculated using the guidance provided in the Clarified Procedures
for Calculating Buffer Mitigation Credits and Nutrient Offset Credits letter issued by the DWR,
see reference # 5.
H. The Bank Sponsor shall obtain written verification of buffer mitigation required from the
delegated local government in the Haw River Subwatershed of the Jordan Lake Watershed or
DWR prior to debiting Riparian Buffer Credits from the individual Bank Parcel.
I. The Bank Sponsor shall obtain verification of nutrient offset need from a designated local
government in the Haw River Subwatershed of the Jordan Lake Watershed or DWR, prior to
debiting Nutrient Offset Credits from the Bank Parcel.
J. 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 (10th) 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
L. All credit sales will include a Mitigation Credit Transfer Certificate ("Certificate") that is
required to be provided to the buyer of Riparian Buffer Credits and/or Nutrient Offset Credits,
that will include, at a minimum, the following information:
1. Bank Details: (1) Bank Sponsor Name, (2) Bank Parcel name as it appears in this
Instrument, (3) DWR project number for the Plan 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 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 Jordan
Lake Watershed, (4-when applicable) nutrient strategy applicable to the project, (5-when
applicable) designated local government requiring Nutrient Offset Credits, and/or (6)
DWR or delegated local government requiring Riparian Buffer Credits for this project and
(7) credit type and amount required for project.
M. 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
16

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 or Nutrient Offset
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.
3. 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 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 credits have been released according to the credit release
schedule in Section VIII and confirmation has been received by DWR that the Conservation
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 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.
17

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. Plan 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,
5. 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
Reports, ledgers, files and other information shall be made available to DWR upon request, unless
otherwise specified in this or any other document.
G. Validity of the Banking Instrument: This Instrument will become valid on the date of the last
party's signature.
H. 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.
I. 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.
J. This Agreement shall be binding upon the parties and is entered into knowingly, intelligently,
and voluntarily.
K. 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:
Davey Resource Group, Inc.
Attention: T.J. Mascia
717 N. Courthouse Road, Suite 101
Richmond, VA 23236
[e-mail]
18

If to DWR:
NC Division of Water Resources — 401 & Buffer Permitting Branch
Atm: Nutrient Offset and Buffer Banking Coordinator
1617 Mail Service Center
Raleigh, NC 27699-1617
L. Applicable Law: This Agreement shall be construed under the laws of the State of North
Carolina.
DAVEY RESOURCE GROUP, INC.
By: T.J. Mascia (Print)
Title:
Date:
Director
January 27, 2022
(Signature)
NORTH CAROLINA DEPARTMENT OF ENVIRONMENTAL QUALITY -DIVISION OF
WATER RESOURCES
By: (Print)
Title:
Date:
(Signature)
19

Nutrient Offset Program & Buffer Mitigation Program
MBI Authorities for Davey Resource Group, LLC effective
ATTACHMENT A
Authorities pertaining to the Dutch Farms Mitigation Banking Instrument
All Basins
General Statutes:
G.S. § 143-214.11 Ecosystem Enhancement Program
G.S. § 143-214.26 Nutrient Offset Credits
G.S. § 143-214.20-24 Riparian Buffer Protection Program
G.S. § 143-214.7 Stormwater runoff rules and programs
G.S. § 143-215.8B Basinwide Water Quality Management Plans
Session Laws
S.L. 2015-246
S.L. 2015-149
S.L. 2014-90
S.L. 2014-120
S.L. 2013-413
S.L. 2013-121
S.L. 2013-265
S.L. 2012-200 (Amendment to G.S. §143-214.23 and G.S. §143-215.1)
S.L. 2011-343 (Amendment to G.S. §143-214.11)
S.L. 2009- 337 (Amendment to G.S. §143-214.11)
Administrative Rules:
15A NCAC 02B .0202 Definitions
15A NCAC 02B .0223 Nutrient Sensitive Waters
15A NCAC 02B .0701 Nutrient Strategies Definitions
15A NCAC 02B .0703 Nutrient Offset Credit Trading
15A NCAC 02B .0295 Mitigation Program Requirements for Protection and Maintenance of Riparian Buffers
Jordan Buffer and Jordan Water Supply Nutrient Strategy
General Statutes and Session Laws:
G.S. § 143-214.5 Water Supply Watershed Protection)
S.L. 2013-395
S.L. 2012-201
S.L. 2012-200 S. L. 2012-187
S.L. 2009-216
S.L. 2009-484
S.L. 2006-259 (Section 31(a))
S.L. 2005-190
S.L. 1999-329 (part of G.S. 143B-282)
Administrative Rules:
15A NCAC 2B .0262 Purpose and Scope
15A NCAC 2B .0263 Definitions
15A NCAC 2B .0264 Agriculture
15A NCAC 2B .0265 Stormwater Management for New Development
15A NCAC 2B .0267 Jordan Water Supply Nutrient Strategy: Protection of Existing Riparian Buffers
15A NCAC 2B .0270 Wastewater Discharge Requirements
15A NCAC 2B .0271 Stormwater Requirements for State and Federal Entities
15A NCAC 2B .0272 Fertilizer Management
15A NCAC 2B .0273 Options for Offsetting Nutrient Loads
Updated
4/1/2020

Jordan Water Supply Nutrient Strategy Updated
Delivered Credit Yield Table for Jordan Sub Watersheds 12/20/2012
Attachment B
Delivered credit yields for buffer acres in Jordan small watersheds.
Watershed ID
Jordan
Subwatershed
Delivery Factors
TN TP
TN Credit
(Ibs/30yrs)
TP Credit
(Ibs/30yrs)
03030002010010
Haw
25% 10%
562.34
14.38
03030002010020
Haw
37% 36%
832.26
51.77
03030002010030
Haw
44% 40%
989.72
57.52
03030002010040
Haw
49% 44%
1102.19
63.27
03030002010050
Haw
55% 48%
1237.15
69.03
03030002020010
Haw
15% 4%
337.40
5.75
03030002020020
Haw
22% 12%
494.86
17.26
03030002020030
Haw
48% 43%
1079.69
61.84
03030002020040
Haw
32% 33%
719.80
47.46
03030002020050
Haw
32% 32%
719.80
46.02
03030002020060
Haw
47% 42%
1057.20
60.40
03030002020070
Haw
54% 47%
1214.66
67.59
03030002030010
Haw
60% 56%
1349.62
80.53
03030002030020
Haw
44% 31%
989.72
44.58
03030002030030
Haw
25% 8%
562.34
11.50
03030002030040
Haw
42% 30%
944.73
43.14
03030002030050
Haw
64% 62%
1439.59
89.16
03030002030060
Haw
39% 19%
877.25
27.32
03030002030070
Haw
36% 18%
809.77
25.88
03030002030080
Haw
73% 64%
1642.04
92.04
03030002040010
Haw
30% 14%
674.81
20.13
03030002040020
Haw
28% 14%
629.82
20.13
03030002040030
Haw
71% 63%
1597.05
90.60
03030002040040
Haw
32% 15%
719.80
21.57
03030002040050
Haw
52% 50%
1169.67
71.90
03030002040060
Haw
54% 51%
1214.66
73.34
03030002040070
Haw
67% 60%
1507.07
86.28
03030002040080
Haw
53% 51%
1192.16
73.34
03030002040090
Haw
54% 51%
1214.66
73.34
03030002040100
Haw
75% 65%
1687.02
93.47
03030002040110
Haw
66% 60%
1484.58
86.28
03030002050010
Haw
74% 68%
1664.53
97.79
03030002050020
Haw
81% 74%
1821.98
106.42
03030002050030
Haw
42% 17%
944.73
24.45
03030002050040
Haw
80% 73%
1799.49
104.98
Page 1 of 2

Jordan Water Supply Nutrient Strategy Updated
Delivered Credit Yield Table for Jordan Sub Watersheds 12/20/2012
Watershed ID
Jordan
Subwatershed
Delivery Factors
TN TP
TN Credit
(Ibs/30yrs)
TP Credit
(Ibs/30yrs)
03030002050050
Haw
71% 67%
1597.05
96.35
03030002050060
Haw
79% 73%
1777.00
104.98
03030002050070
Haw
78% 72%
1754.50
103.54
03030002050080
Haw
80% 73%
1799.49
104.98
03030002050090
Haw
79% 73%
1777.00
104.98
03030002050100
Haw
81% 75%
1821.98
107.85
03030002060010
Haw
81% 74%
1821.98
106.42
03030002060020
Haw
95% 97%
2136.90
139.49
03030002060030
Haw
88% 91%
1979.44
130.86
03030002060040
Haw
97% 98%
2181.88
140.93
03030002060050
Haw
92% 95%
2069.41
136.61
03030002060062
Haw
98% 99%
2204.38
142.37
03030002060070
UNH
40% 19%
867.70
27.32
03030002060080
UNH
59% 45%
1279.86
64.71
03030002060100
UNH
69% 63%
1496.79
90.60
03030002060110
UNH
61% 58%
1323.25
83.41
03030002060120
UNH
69% 63%
1496.79
90.60
03030002060140
UNH
85% 89%
1843.87
127.99
03030002060130
UNH
69% 63%
1496.79
90.60
03030002060160
LNH
85% 90%
1932.07
131.76
03030002060090*
UNH
92% 94%
1995.71
135.18
03030002060090*
LNH
92% 94%
2091.18
137.62
03030002060060*
UNH
94% 96%
2039.10
138.05
03030002060060*
LNH
94% 96%
2136.64
140.54
03030002060150*
UNH
88% 91%
1908.94
130.86
03030002060150*
LNH
88% 91%
2000.26
133.22
*Watershed is located in both the Upper New Hope (UNH) and Lower New Hope (LNH Subwatersheds.
Page 2 of 2

Attachment C
*Credits shown below are only for mitigation credits approved by the MBI, BPDP, and As -Built.
Total Credits Released To Date:
Y
>
0
co
U
0
J
Buffer Credit Balance
U'i
L
U
Q
Square
Feet
Credits Debited/Sold
From Bank
Acres
Square Feet
Credits
Released/Available to
Bank
Acres
Square Feet
Project w/ 14 Digit HUC
Purchaser Name or % of
Credit Release
co
v)
aJ
co
0
U
fB
aJ
aJ
CC

*Credits shown below are only for mitigation credits approved by the MBI, BPDP, and
Q1
0)
Q1
^ J
E La
"-
ro
z U Yt
C C U —
a, a, -o v ro
E d4 O O O
o
L ro d '-
O
z O- aJ
C D E Q1
o6 It w U
Q1 U J
o = Q1 ro m
ro
cO a,
c E 0
o ro
o- z
rn —
Q,
ro
LL
z
0
ro
LL
i
Q1
0)
0
-;
o
co
U
0.0
c
•
0
a
Q1
Nutrient Credit Balance
Delivered
Nitrogen (Ibs)
Generated
Nitrogen (Ibs)
Credits Debited/Sold From
Bank
Delivered
Nitrogen (Ibs)
Generated
Nitrogen (Ibs)
Credits Released/Available to
Bank
Delivered
Nitrogen (Ibs)
Generated
Nitrogen (Ibs)
14-digit HUC of
Project
Q1
E
co
z
u
Q1
O
d
Purchaser Name or % of
Credit Release
Q1
N
co
Q1
Q1
\
Q1
co
l% 1
,
M
0

Attachment D
Table 1. [INSERT PROJECT NAME], [INSERT PROJECT NUMBER], Project Credits
Project Area
N Credit Conversion Ratio (fe/pound)
P Credit Conversion Ratio (W/pound)
Delivered
Nutrient
Offset: P (Ibs)
0.000
Delivered
Nutrient Offset:
N (Ibs)
0.000
Convertible to
Nutrient Offset?
Riparian Buffer
Credits
0.000
Convertible to
Riparian
Buffer?
Final Credit
Ratio (x:1)
% Full Credit
Initial Credit
Ratio (x:1)
Total (Creditable)
Area of Buffer
Mitigation (ft2)
:::
Total Area (ft2)
Feature Name
Total Buffer (ft2):
Total Nutrient Offset (ft2):
Min -Max Buffer
Width (ft)
Mitigation Activity
Neuse 03020204
a
CA
a
z
Feature Type
Subject? (enter
NO if
ephemeral or
ditch 1)
Location
Credit Type
% Full Credit
0
e
0
0
e
0
0
Total (Creditable)
Area for Buffer
Mitigation (ft2)
0
0
0
0
Total Area (sf)
0
V
a
ion Area Subtotals (ft)
a
TOTAL AREA OF BUFFER MITIGATION (TABM)
Credits
0.000
0.000
0.000
Total Riparian Buffer: I 0 I 0.000
TOTAL NUTRIENT OFFSET MITIGATION
Credits
0.000
0
0
0
0
Square Feet
0
0 0
Square Feet
0
Mitigation Totals
Restoration:
Enhancement:
Preservation:
Mitigatia
Nutrient Offset:
1. The Randleman Lake buffer rules allow some ditches to be classified as subject according to 15A NCAC 02B .0250 (5)(a).
last updated 08/03/2020