20210754 Ver 3_Sassafras Phase II_Initial Credit Release Request Form_20230317

ID#* 20210754 Version* 3
Select Reviewer:
Katie Merritt
Initial Review Completed Date 03/20/2023
Mitigation Project Submittal - 3/17/2023
Is this a Prospectus, Technical Proposal or a New Site?* Yes No
Type of Mitigation Project:*
Stream Wetlands Buffer Nutrient Offset
(Select all that apply)
Project Contact Information
Contact Name: * Email Address:
Jamey McEachran [e-mail]
Project Information
ID#: * 20210754 Version:* 3
Existing ID# Existing Version
Project Type: DMS Mitigation Bank
Project Name: Sassafras Phase II
County: Wayne
Document Information
Mitigation Document Type:*
Mitigation Bank Information
File Upload: Sassafras Phase II —Initial Credit Release Request
2.76MB
Form.pdf
Please upload only one PDF of the complete file that needs to be submitted...
Signature
..................................................................................................................................................................................................................................................
Print Name:* Jamey McEachran
Signature: *
J" l#cf"'Aw'

3600 Glenwood Avenue, Suite 100
Raleigh, NC 27612
Corporate Headquarters
6575 West Loop South, Suite 300
Bellaire, TX 77401
Main: 713.520.5400
March 9, 2023
CREDIT RELEASE REQUEST FORM
To: NCDEQ-DWR Nutrient Offset Coordinator
Instrument and BPDP Approved by DWR, Conservation Easement
Recorded* and Financial Assurance Posted
From: Heath Hidlay, [e-mail] (717-543-7711)
Through: Environmental Banc and Exchange, LLC (EBX)
We formally request a credit release for the Sassafras Phase II Mitigation Site (DWR Project # 2021-
0754v3) for completion of Task #1: Instrument and BPDP Approved by DWR, Conservation
Easement Recorded* and Financial Assurance Posted per the PROPOSED credit release schedule,
which is included in the Attachments with this request. The following documents have been submitted
to DWR for Task #1:
1) BPDP, 2) Credit Release Schedule (Proposed, and Excel, once approved will be added to the as-built report and 3) Bond Pending Signature for Construction (#9420706) Penal Sum $150,000
Credits requested for release are detailed below:
Credit Type %
Release
Credit Amount
(Include Units)
Notes/Comments
Generated Nitrogen Nutrient Offset 20 5624.242
Signature: Heath Hidlay
Attachments: 1) BPDP Approval and Project Credit Table from BPDP Approval, 2) Approved Credit Release
Schedule, 3) Excel Credit Release Schedule 4) Construction Bond (Pending Signature) #9409242

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

January 4, 2023

Environmental Banc & Exchange, LLC
Attn: Jamey Mceachran
(via electronic mail: [e-mail] )

Re: BPDP Approval

Dear Ms. Mceachran,

The Division of Water Resources (DWR) received a draft Bank Parcel Development Package
(BPDP) for the Sassafras Phase II Site (Site) in 2021, for review and approval under the terms and
conditions of the RES 2022 Phase II Umbrella Mitigation Banking Instrument (DWR ID# 2021-
0306v2) which was made and entered into by Environmental Banc & Exchange, LLC acting as the
Bank Sponsor, and the DWR on April 22, 2022. DWR reviewed the BPDP and provided comments
and recommendations. DWR received a revised BPDP that addressed all comments and
recommendations. The table below summarizes the timeline of the BPDP:

Project Site
Name
DWR Project
ID #
Initial Draft
Received
Revised Draft Received
(Final Draft)
Public Notice
Date
Sassafras
Phase II BPDP
2021-0754v3 November 19, 2021 September 23, 2022 December 12, 2022

The closing date for the public notice was December 27, 2022. DWR received no comments
regarding the subject BPDP. These documents are now approved and can be found online at the
following links:

Sassafras Phase II BPDP:
https://edocs.deq.nc.gov/WaterResources/DocView.aspx?id=2514314&dbid=0&repo=WaterResources

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

Sincerely,

Katie Merritt
401 & Buffer Permitting Branch

cc: DWR File Copy (Katie Merritt)
Table 6. Sassafras Phase II Project Credits
Project Area
N Credit Conversion Ratio (ft2/pound)
P Credit Conversion Ratio (ft2/pound)
Credit Type Location
Subject? (enter
NO if
ephemeral or
ditch 1)
Feature Type Mitigation Activity Min-Max Buffer
Width (ft)Feature Name Total Area (ft2)
Total (Creditable)
Area of Buffer
Mitigation (ft2)
Initial Credit
Ratio (x:1)% Full Credit Final Credit
Ratio (x:1)
Convertible to
Riparian
Buffer?
Riparian Buffer
Credits
Convertible to
Nutrient Offset?
Delivered
Nutrient Offset:
N (lbs)
Delivered
Nutrient
Offset: P (lbs)
Nutrient Offset Rural Yes Ditch Restoration 0-100 Ditch 1 82,670 1 100%No —Yes 4,313.831 —
Nutrient Offset Rural Yes Ditch Restoration 101-200 Ditch 1 54,526 1 33%No —Yes 2,845.246 —
Nutrient Offset Rural No Ephemeral Restoration 101-200 RS2-A 21,428 1 33%No —Yes 1,118.143 —
Nutrient Offset Rural Yes I / P Restoration 101-200 RS1, RS2-B, RS2-C, RS3 380,289 1 33%No —Yes 19,843.988 —
Nutrient Offset Rural No Ditch Restoration No Credit Area (> 200 ft)13,364 1 No —No ——
———
———
———
———
———
———
———
———
———
———
———
———
———
———
Totals (ft2):552,277 0 0.000 28,121.208 0.000
Total Buffer (ft2):0 0
Total Nutrient Offset (ft2):552,277 N/A
Total Ephemeral Area (ft2) for Credit:0 0
Total Eligible Ephemeral Area (ft2):0 0.0%Ephemeral Reaches as % TABM
Enter Preservation Credits Below Total Eligible for Preservation (ft2):0 0.0%Preservation as % TABM
Credit Type Location Subject?Feature Type Mitigation Activity Min-Max Buffer
Width (ft)Feature Name Total Area (sf)
Total (Creditable)
Area for Buffer
Mitigation (ft2)
Initial Credit
Ratio (x:1)% Full Credit Final Credit
Ratio (x:1)
Riparian
Buffer Credits
Buffer —
Buffer —
Buffer —
—
—
Preservation Area Subtotals (ft2):0 0
Square Feet Credits
0 0.000
0 0.000
0 0.000
0 0.000
Square Feet Credits
Nitrogen:28,121.208
Phosphorus:0.000552,277
TOTAL AREA OF BUFFER MITIGATION (TABM)
TOTAL NUTRIENT OFFSET MITIGATION
Mitigation Totals
Nutrient Offset:
Preservation:
Total Riparian Buffer:
Neuse 03020201 - Outside Falls Lake
19.16394
N/A
Restoration:
Enhancement:
Mitigation Totals
1. Tops of banks along streams, ephemeral channels and ditches associated with the Project.
Original Mit Plan Credits 28,121.208
Nutrient Offset Credit release schedule TOTAL (as-built) Credits:
Credit Release #%Nitrogen
1 Instrument and BPDP Approved by DWR, Conservation Easement Recorded* and
Financial Assurance Posted 20%5624.242
2 Mitigation Site Earthwork, Planting and Installation of Monitoring Devices Completed 20%5624.242
3 Monitoring Financial Assurance Posted and Approval of As-Built Report 10%2812.121
4 Monitoring Report #1: Approved by the DWR** & financial assurance renewed 10%2812.121
5 Monitoring Report #2: Approved by the DWR** & financial assurance renewed 10%2812.121
6 Monitoring Report #3: Approved by the DWR** & financial assurance renewed 10%2812.121
7 Item B (1) of Section X in this Instrument has been completed and approved by DWR.5%1406.060
8 Monitoring Report #4: Approved by the DWR** & financial assurance renewed 5%1406.060
9 Monitoring Report #5: Approved by the DWR** and final site visit by DWR has been
conducted 10%2812.121
11
VIII.CREDIT RELEASE SCHEDULE
A.Upon submittal of all appropriate documentation by the Sponsor, and subsequent approval
by DWR, it is agreed that the Nutrient Offset Credits associated with the Bank Parcel will
become available for sale to a third party in accordance with Credit Release Schedule in
Table 3.0 below.
Table 3.0 - Credit Release Schedule for Nutrient Offset Credits
Task Project Milestone
% Credit
Available for
Sale
1
Instrument and BPDP Approved by DWR, Full Delivery DMS Mitigation
Plan approved by DWR, Conservation Easement Recorded*, Financial
Assurance Posted 20
2
All Riparian Site Earthwork, Planting and Installation of Monitoring
Devices Completed for both the Sassafras Full Delivery site and the Bank
Parcel, easement boundaries adequately marked, & all applicable permits
obtained. A site visit performed 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
7
Item B (1) of Section X in this Instrument has been completed and
approved by DWR. 5
No remaining credits will be released until the conservation easement has
been assigned to an approved land trust or stewardship
8
Monitoring Report #4: Approved by the DWR** & Financial Assurance
renewed 5
9
Monitoring Report #5: Approved by the DWR** and final site visit by
DWR has been conducted 10
Total 100%
* For specification, please see Section V in this Instrument
** DWR Approval provided upon a determination that the site is meeting success criteria contained within the
approved BPDP
B.DWR may modify 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.
C.Any major deviations to the Bank Parcel that were not authorized in writing by DWR prior
to implementation may affect the amount nutrient offset credits that will be generated by
the Bank Parcel.
PROPOSED CREDIT RELEASE SCHEDULE
Mitigation Bank Construction
Performance Bond
Bond No. 9420706 Penal Sum: S $150,000.00
Know All Men By These Presents,
That we, Environmental Banc & Exchange, LLC of 6575 West Loop South, Suite 300 Bellaire, TX 77401
(hereinafter called the Principal), as Principal, and Fidelity and Deposit Company of Maryland with an
office at 1299 Zurich Way, 5th Fl, Schaumburg, IL 60196, a corporation duly organized under the laws of the
State of Illinois (hereinafter called the "Surety"), as Surety, are held and firmly bound unto the North Carolina
Department of Environmental Quality - Division of Water Resources, 1617 Mail Service Center, Raleigh,
NC 27699-1617 (hereinafter called the "Obligee"), as Obligee, up to the maximum penal sum of One Hundred
Fifty Thousand and 00/100 Dollars ($150,000.00) (hereinafter called the "Maximum Penal Sum"), for the
payment of which we, the Principal and the Surety, bind ourselves, our heirs, executors, administrators,
successors and assigns, jointly and severally, firmly by these presents.
WHEREAS, the Principal has entered into the RES 2022 Phase II Umbrella Mitigation Banking Instrument
for Nutrient Offset and Buffer Mitigation Credits (hereinafter called the "UMBI") with the Obligee,
dated the 22"d day of A p r i 1, 2022, which includes the Sassafras Phase II Nutrient Offset Bank Parcel
Development Package (hereinafter called the BPDP) for the Sassafras Phase 11 Nutrient Offset Site (the
"Bank Site") where financial obligations by the Principal are explicitly written and agreed upon between the
Principal and the Obligee, the UMBI and BPDP are hereby referred to and made a part hereof as if fully set forth
herein.
WHEREAS, the Principal has received approval of their BPDP by the North Carolina Division of Water
Resources ("NCDWR") and that the NCDWR has granted the necessary approval, subject to the posting by the
Principal of this Bond (the "Bond"), to insure full compliance with all the terms and conditions of the UMBI
and BPDP; NCDWR #2021-0754 Q.
NOW, THEREFORE, THE CONDITION OF THIS OBLIGATION IS SUCH, that if the above bounden Principal
shall successfully complete construction and obtain written approval of an as- built report from the Obligee, then
this obligation shall be null and void; otherwise it shall remain in full force and effect. This Bond is subject to the
following conditions:
1) Obligee will issue a full and final release of this Bond Upon successful completion of construction and
approval of an as -built report, or ii) other security, in the amount of and covering the same obligations
stated herein, is posted with the Obligee.
2) If any payment under this Bond, as set forth in subsection 3 b) below, is made, then the outstanding
penal sum of the Bond shall be reduced by the corresponding amount of such payment.
Notwithstanding anything contained herein to the contrary, the aggregate liability of the Surety is
limited to the Maximum Penal Sum stated above regardless of the number or amount of claims brought
against this bond and regardless of the number of years this bond remains in effect. The Obligee shall
issue a full and final release of this Bond and any and all of Surety's obligations hereunder when Surety
has tendered payment in whole, or in parts equal to the aggregate sum.
3) The Surety's obligation under this Bond shall only arise after the Obligee has notified the Principal
and the Surety of the Principal's failure to abide by the terms and conditions of the UMBI and BPDP.
Upon notice of the Principal's default under the UMBI and BPDP, the Surety, in its sole discretion,
shall remedy the Principal's default either under subsection 3) a) or 3) b) below. In the event that the
Surety either fails to respond to Obligee's notice of default within thirty (30) business days of receipt
of said notice, or fails to honor Surety's commitments under this bond to the full satisfaction of the
Obligee, then Surety shall remedy such default in accordance with subsection 3) c) below.

a) Surety shall remedy Principal's default to the full satisfaction of the Obligee by a reasonable
date certain set by the Obligee; or
b) Surety shall immediately tender to a party, or parties, identified by the Obligee the entire, or a
portion thereof the, Maximum Penal Sum, that the Obligee has determined is due in an effort
to remedy the Principal's default. In no event shall any portion of the Maximum Penal Sum be
tendered to the Obligee. Any new party or parties identified by the Obligee under this section
shall immediately become a Surety or Sureties under this bond for the remaining term of the
bond. If the Obligee determines that it is unable to identify such a party, or parties, the Surety
(ies) shall remedy the default of the Principal under subsection 3) a) of this bond;
c) The Surety shall pay to a party, or parties, identified by the Obligee the remaining unexpended
portion of the Maximum Penal Sum. Said sum shall become immediately due to a party, or
parties, identified by the Obligee. In no event shall such sum be tendered to the Obligee. Any
new party or parties identified by the Obligee under this paragraph shall immediately become
a Surety or Sureties under this bond for the remaining term of the bond.
NOTWITHSTANDING ANYTHING CONTAINED IN THE AGREEMENT TO THE CONTRARY, THE
LIABILITY OF THE PRINCIPAL AND SURETY UNDER THIS BOND IS LIMITED TO THE TERM
BEGINNING THE 21st OF December, 2022, AND ENDING THE 21st DAY OF December, 2023 AND ANY
EXTENSIONS OR RENEWALS OF THE REFERENCED AGREEMENT SHALL BE COVERED UNDER TH
IS BOND ONLY WHEN CONSENTED TO IN WRITING BY THE SURETY. IT IS FURTHER AGREED
THAT THE REFUSAL BY THE SURETY TO EXTEND THE TERM OF THIS BOND SHALL NOT
CONSTITUTE A DEFAULT BY THE PRINCIPAL AND SHALL NOT GIVE RISE TO A CLAIM OR
DEMAND AGAINST THE SURETY UNDER THIS BOND.
In accordance with 33 C.F.R. § 332.3(n)(5), the Surety shall provide the Obligee notification of at least 120 days
in advance of termination, revocation, or modification of this bond.
No right of action shall accrue on this bond to or for the use of any person or corporation other than the Obligee
named herein, or their heirs, executors, administrators or successors.
The above -bounden parties have executed this instrument under their several seals, dated this 21st day of
December, 2022, the name and corporate seal of each corporate party being affixed and these presents duly signed
by its undersigned representative, pursuant to authority of its governing body.
Principal Env'ronmental Bane and Exchange, LLC
BY: l fr��sl
Surety: Fide ity and Deposit Corn y of Mar land
By: i i�Apl[
Lisa A. Ward, Attorney -in -Fact
Obligee: North Carolina Department of Enironmental Qu6iity
— Division of Water Resources

ZURICH AMERICAN INSURANCE COMPANY
COLONIAL AMERICAN CASUALTY AND SURETY COMPANY
FIDELITY AND DEPOSIT COMPANY OF MARYLAND
POWER OF ATTORNEY
KNOW ALL MEN BY THESE PRESENTS: That the ZURICH AMERICAN INSURANCE COMPANY, a corporation of the State of New York, the
COLONIAL AMERICAN CASUALTY AND SURETY COMPANY, a corporation of the State of Illinois, and the FIDELITY AND
DEPOSIT COMPANY OF MARYLAND a corporation of the State of Illinois (herein collectively called the "Companies"), by Robert D. Murray,
Vice President, in pursuance of authority granted by Article V, Section 8, of the By -Laws of said Companies, which are set forth on the reverse side
hereof and are hereby certified to be in full force and effect on the date hereof, do hereby nominate, constitute, and appoint, Melissa L.
FORTIER, Donna L. WILLIAMS, Vanessa DOMINGUEZ, Michael J. HERROD, Lupe TYLER, Lisa A.
WARD, Terri L. MORRISON, Misty WRIGHT, Erin M. DENNISON, Andrea M. PENALOZA,
Gina A. RODRIGUEZ, Amanda GEORGE, of Houston, Texas, Each, its
true and lawful agent and Attorney -in -Fact, to make, execute, seal and deliver, for, and on its behalf as surety, and as its act and deed: any and all
bonds and undertakings, and the execution of such bonds or undertakings in pursuance of these presents, shall be as binding upon said Companies,
as fully and amply, to all intents and purposes, as if they had been duly executed and acknowledged by the regularly elected officers of the
ZURICH AMERICAN INSURANCE COMPANY at its office in New York, New York., the regularly elected officers of the
COLONIAL AMERICAN CASUALTY AND SURETY COMPANY at its office in Owings Mills, Maryland., and the regularly elected officers of
the FIDELITY AND DEPOSIT COMPANY OF MARYLAND at its office in Owings Mills, Maryland., in their own proper persons. The said Vice
President does hereby certify that the extract set forth on the reverse side hereof is a true copy of Article V, Section 8, of the By -Laws of said
Companies and is now in force.
IN WITNESS WHEREOF, the said Vice -President has hereunto subscribed his/her names and affixed the Corporate Seals of the said
ZURICH AMERICAN INSURANCE COMPANY, COLONIAL AMERICAN CASUALTY AND SURETY COMPANY, and FIDELITY
AND DEPOSIT COMPANY OF MARYLAND, this 22nd day of September, A.D. 2020.
ATTEST:
ZURICH AMERICAN INSURANCE COMPANY
COLONIAL AMERICAN CASUALTY AND SURETY COMPANY
FIDELITY AND DEPOSIT COMPANY OF MARYLAND
By: Robert D. Murray
Vice President
By: Dawn E. Brown
Secretary
State of Maryland
County of Baltimore
On this 22nd day of September, A.D. 2020, before the subscriber, a Notary Public of the State of Maryland, duly commissioned and qualified, Robert D.
Murray, Vice President and Dawn E. Brown, Secretary of the Companies, to me personally known to be the individuals and officers described in and who
executed the preceding instrument, and acknowledged the execution of same, and being by me duly swom, deposeth and saith, that he/she is the said officer of
the Company aforesaid, and that the seals affixed to the preceding instrument are the Corporate Seals of said Companies, and that the said Corporate Seals and
the signature as such officer were duly affixed and subscribed to the said instrument by the authority and direction of the said Corporations.
IN TESTIMONY WHEREOF, I have hereunto set my hand and affixed my Official Seal the day and year first above written.
�.._.a1.
Constance A. Dunn, Notary Public
My Commission Expires: July 9, 2023

EXTRACT FROM BY-LAWS OF THE COMPANIES
"Article V, Section 8, Attornevs-in-Fact. The Chief Executive Officer, the President, or any Executive Vice President or Vice President
may, by written instrument under the attested corporate seal, appoint attorneys -in -fact with authority to execute bonds, policies,
recognizances, stipulations, undertakings, or other like instruments on behalf of the Company, and may authorize any officer or any such
attorney -in -fact to affix the corporate seal thereto; and may with or without cause modify of revoke any such appointment or authority at any
time."
CERTIFICATE
I, the undersigned, Vice President of the ZURICH AMERICAN INSURANCE COMPANY, the COLONIAL AMERICAN
CASUALTY AND SURETY COMPANY, and the FIDELITY AND DEPOSIT COMPANY OF MARYLAND, do hereby certify that the
foregoing Power of Attorney is still in full force and effect on the date of this certificate; and I do further certify that Article V, Section 8, of
the By -Laws of the Companies is still in force.
This Power of Attorney and Certificate may be signed by facsimile under and by authority of the following resolution of the Board of
Directors of the ZURICH AMERICAN INSURANCE COMPANY at a meeting duly called and held on the 15th day of December 1998.
RESOLVED: "That the signature of the President or a Vice President and the attesting signature of a Secretary or an Assistant Secretary
and the Seal of the Company may be affixed by facsimile on any Power of Attorney... Any such Power or any certificate thereof bearing such
facsimile signature and seal shall be valid and binding on the Company."
This Power of Attorney and Certificate may be signed by facsimile under and by authority of the following resolution of the Board of
Directors of the COLONIAL AMERICAN CASUALTY AND SURETY COMPANY at a meeting duly called and held on the 5th day of May,
1994, and the following resolution of the Board of Directors of the FIDELITY AND DEPOSIT COMPANY OF MARYLAND at a meeting
duty called and held on the IOth day of May, 1990.
RESOLVED: "That the facsimile or mechanically reproduced seal of the company and facsimile or mechanically reproduced signature
of any Vice -President, Secretary, or Assistant Secretary of the Company, whether made heretofore or hereafter, wherever appearing upon a
certified copy of any power of attorney issued by the Company, shall be valid and binding upon the Company with the same force and effect
as though manually affixed.
IN T15TIMONKWHEREOF, I have hereunto subscribed my name and affixed the corporate seals of the said Companies,
this . — day of 0�=C, �`i�o�-
�%��-�y�
Brian M. Hodges, Vice President
TO REPORT A CLAIM WITH REGARD TO A SURETY BOND, PLEASE SUBMIT A COMPLETE DESCRIPTION
JIB THE CLAIM INCLUDING THE PRINCIPAL ON THE BOND, THE BOND NUMBER, AND YOUR CONTACT
INFORMATION TO:
Zurich Surety Claims
1299 Zurich Way
Schaumburg, IL 60196-1056
www.rei)ortsfelaiius a-zurichrra.com
800-626-4577