20110720 Ver 2_Credit Release Task 3_20150629

NCDENR
North Carolina Department of Environment and Natural Resources
Pat McCrory
Governor
June 29, 2015
Ms. Daniel Ingram
Resource Environmental Solutions, LLC
302 Jefferson Street, Suite 110
Raleigh, NC 27605
Donald R. van der Vaart
Secretary
DWR Project #: 2011- 0720v2
Orange County
Re: Upper Neuse River Basin Umbrella Mitigation Banking Instrument (UMBI)
Cedar Grove Bank Credit Release — Task 3
Dear Mr. Ingram:
On June 19, 2015, the Division of Water Resources (DWR), received an As -Built Report for the
Cedar Grove Riparian Buffer and Nutrient Offset Bank Parcel submitted by Environmental Banc &
Exchange, LLC (EBX), an affiliate of Resource Environmental Solutions, LLC (RES). After
receiving comments from Katie Merritt, with DWR, EBX submitted a revised As -Built Report on
June 26, 2015.
On June 29, 2015, DWR received a performance bond ( #RLB0016052) issued to EBX to cover
monitoring and maintenance at the subject site. The term of this bond applies from June 9, 2015 to
June 9, 2016. Therefore, EBX is required to renew the performance bond prior to June 9, 2016 and
is required to renew the bond annually for at least 4 more years. Future credit releases will be
dependent on both the renewal of this performance bond and the annual monitoring reports.
According to the UMBI signed on February 10, 2012, the following Project Milestones have been
met, and the corresponding credits shall be released:
Task/Milestones
Credit
3) Monitoring Financial Assurance Posted and Approval of As -Built Report 10%
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.ncwaterquality.org
An Equal Opportunity \ Affirmative Action Employer — Made in part by recycled paper

By copy of this correspondence, DWR confirms that you have satisfied the above requirements for
the above - referenced tract and 10% of your Neuse riparian buffer credits (0.1 x 640,486 ft2 =
64,048.6 ft2) are available for sale. Additionally, 10% of your nitrogen nutrient offset credits (0.1 x
55,052.54 lb -N = 5,505.25 lb -N) are available for sale. Lastly, 10% of your phosphorous nutrient
offset credits (0.1 x 3,545.81 lb -P = 3 54.5 8 lb -P) are available for sale.
Please note that nutrient offset credits generated at this site must be used for impacts in HUC
03020201 of the Neuse River Basin which includes only the Upper and Lower Falls
Watersheds as defined in 15A NCAC 02B .0276. Additionally, the riparian buffer credits
must be used for impacts in the Neuse River Basin according to guidelines in the new
Temporary Consolidated Buffer Mitigation Rule, 15A NCAC 02B.0295, which became
effective on October 24, 2014.
Please feel free to call Katie Merritt at (919) 807 -6371 if you have any questions regarding this
correspondence.
Sincerely,
Karen Higgins, Supervisor
401 and Buffer Permitting Unit
KAH/km
cc:File Copy (Katie Merritt)
Cara Conder — EBX (via electronic mail)