20210536 Ver 1_Initial Credial Credit Release Letter

August 11, 2023

Regulatory Division/Isenhour

Action ID No. SAW-2021-00489

Re: Initial Credit Release associated with the RES Cape Fear 02 Umbrella Mitigation
Bank—Tobacco Road Mitigation Site

Mr. Ben Carroll
Resource Environmental Solutions
3600 Glenwood Avenue, Suite 100
Raleigh, North Carolina 27612

Dear Mr. Carroll:

This correspondence is in reference to RES Cape Fear 02 Umbrella Mitigation
Bank—Tobacco Road Mitigation Site located at 5429 Thom Road in Mebane, Alamance
County, NC, within the Cape Fear River Basin Cataloging Unit (03030002). The purpose
of this letter is to confirm the initial release of credits for this mitigation site.
(35.973063°N, -79.282234°W)

Pursuant to the Mitigation Banking Instrument (UMBI) entitled, Agreement to Establish
the RES Cape Fear 02 Umbrella Mitigation Banking Instrument Within the State of North
Carolina, approved February 9, 2018, 15 percent of the mitigation site’s restoration
credits and 100 percent of the site’s preservation credits shall be available for sale
immediately upon completion of all the following:

a. Approval of the final mitigation plan (May 17, 2023);

b. Issuance of the 404-permit authorization for construction of the site (June 20,
2023);

c. Delivery of the executed financial assurance documents as described in the
UMBI (August 4, 2023);

d. Recordation of the Corps-approved site protection mechanism described in the
UMBI including a title opinion covering the property. (April 2023)

e. Execution of the UMBI by the sponsor and USACE (February 9, 2018); and

REPLY TO
ATTENTION OF:
DEPARTMENT OF THE ARMY
WILMINGTON DISTRICT, CORPS OF ENGINEERS
69 DARLINGTON AVENUE
WILMINGTON, NORTH CAROLINA 28403-1343
f. Documentation of the establishment of the long-term endowment/escrow
account (August 3, 2023).

By copy of this correspondence, we confirm that you have satisfied the above
requirements for the initial credit release; and 976.953 warm stream mitigation units
(SMUs), constituting 15 percent of the mitigation site’s total restoration and enhancement
credits and 100 percent of the stream preservation credits, plus 0.314 riparian wetland
credits are now available. The total potential riparian wetland credits for the site are 2.096
WMUs. 1,874.334 SMUs are being held until the Layered Riffle Standard has been met
successfully.

Credit Type Site Total Release % Release
SMUs: Restoration & 6423.200 15% 963.480
Enhancement I
Preservation
Layered Riffle Credits

13.472
1874.334

100%

13.472
Stream TOTAL 8311.010 976.953

Riparian Wetland 2.096 15% 0.314

Wetland TOTAL 2.096 0.314

Thank you for your interest in restoring and protecting waters of the United States. If
you have questions regarding this letter, please contact me at [phone] or
[e-mail].

Sincerely,

Kimberly Isenhour
for Todd Tugwell
Mitigation Branch Chief
Wilmington District Regulatory Division

Electronic Copies Furnished:

NCIRT Distribution List