20080510 Ver 0_credit sale audit_RS 1-2015_20150303

NCDENR
North Carolina Department of Environment and Natural Resources
Pat McCrory Donald R. van der Vaart
Governor Secretary
March 3, 2015
Mr. George Howard
Restoration Systems, LLC
1101 Haynes St, Ste 211
Raleigh, NC 27604
Re: Audit of Credit Sales for Nutrient Offset & Riparian Buffer Mitigation Banks owned by
Restoration Systems, LLC
Dear Mr. Howard:
On January 7, 2015, Katie Merritt with the Division of Water Resources (DWR) notified Restoration
Systems, LLC (RS) that DWR was performing an annual audit of all nutrient offset and riparian buffer
mitigation credit sales for all private nutrient offset and riparian buffer mitigation banks in North Carolina.
Along with this notification, Ms. Merritt requested all credit ledgers along with all corresponding receipts
and local government approval /verification letters for the following banks from January 1, 2014 to
December 31, 2014:
• Wellons Farm Bank ( #2008- 0510v2) —SOLD OUT
• Lane Island Bank ( #2008 - 05100) — ONLYBUFFER CREDITS REMAINING
• Pancho( #2010- 0099v3)
• Bass Mountain ( #2009 -0622)
On January 22, 2015, February 10, 2015, and February 13, 2015 DWR received all of the requested
documentation. Findings from this audit suggest that all credit sales are now compliant. Your approved
ledgers will be posted at the following link: http: / /portal.ncdenr.org /web /wq /nutrientbufferbanks.
Additionally, buffer and nutrient offset credits generated from any of the above - mentioned mitigation banks
must be purchased only from Restoration Systems, LLC. No other entity is allowed to accept payments for
buffer and nutrient offset credits from these mitigation banks other than the entity mentioned as the Bank
Sponsor in the corresponding Umbrella Mitigation Banking Instruments and Bank Parcel Development
Packages. All Mitigation Credit Transfer Certificates must explicitly show to whom payment was received
for the mitigation credit type purchased.
Division of Water Resources - 401 and Buffer Permitting Unit
1617 Mail Service Center, Raleigh, North Carolina 27699 -1617
Location: 512 N. Salisbury St. Raleigh, North Carolina 27604
Phone: 919 - 807 -6300 \ FAX: 919 - 807 -6494
Internet: www.newaterquality.org
An Equal Opportunity \ Affirmative Action Employer — Made in part by recycled paper

Thank you for your cooperation with this audit. For any questions regarding this correspondence, please
contact Katie Merritt at (919) 807 -6371.
Sincerely,
Karen Higgins, Supervisor
401 & Buffer Permitting Unit
KAH/km
cc: File Copy (Katie Merritt)
Tiffani Bylow — (RS via electronic mail)