HomeMy WebLinkAbout20230748 Ver 2_2023-11-20 HobbyHill-MBI_20231120
1
AGREEMENT TO ESTABLISH THE HOBBY HILL MITIGATION BANKING INSTRUMENT IN THE
RANDLEMAN LAKE WATERSHED WITHIN THE CAPE FEAR RIVER BASIN FOR RIPARIAN BUFFER
MITIGATION CREDITS PURSUANT TO THE RANDLEMAN LAKE WATER SUPPLY NUTRIENT
STRATEGY
Table of Contents:
I. Preamble 1
II. Location and Geographic Service Area 1
III. Authorities 1
IV. Establishment of the Bank Parcel 3
V. Pre-Construction Documentation for the Bank Parcel 4
VI. Post Construction Documentation for the Bank Parcel 6
VII. Calculation of Credits 9
VIII. Credit Release Schedule 10
IX. Procedure for Debiting and Crediting Mitigation Credits 11
X. Bank Parcel Closure 12
XI. General Provisions for the Bank Parcel 12
Attachments:
A – Division of Water Resources Authority Document
B – Bank Parcel Ledger (template)
C – Bank Parcel Credit Table (template)
References:
1. Riparian Buffer Mitigation Rule:
http://reports.oah.state.nc.us/ncac/title%2015a%20-
%20environmental%20quality/chapter%2002%20-
%20environmental%20management/subchapter%20b/15a%20ncac%2002b%20.0295.pdf
2. Buffer Interpretation/ Clarification# 2008- 019 for diffuse flow:
https://deq.nc.gov/media/4742/download
3. Clarified Procedures for Calculating Buffer Mitigation Credits and Nutrient Offset Credits
(November 2019):
https://deq.nc.gov/media/15043/download
2
I. PREAMBLE
This Umbrella Mitigation Banking Instrument (“Instrument”) regarding the establishment, use,
operation, and maintenance of the Hobby Hill Buffer Mitigation Bank Parcel (“Bank Parcel”), further
identified in Section II, is to provide Randleman Lake Riparian Buffer mitigation credits (“Riparian Buffer
Credits”) is made and entered into by and among Terra 2023, LLC, a disregarded entity of Eco Terra, LLC,
a Georgia Limited Liability Company with further registration with North Carolina Secretary of State,
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 15A NCAC 02B .0295, which
became effective on November 1, 2015, and 15A NCAC 02B .0724. See references.
The purpose of the Bank Parcel is:
A. To establish, restore and preserve riparian vegetation adjacent to streams with the intent
to improve water quality within the Randleman Lake Watershed.
B. To convert agricultural land uses within riparian areas adjacent to streams into a dense and
diverse hardwood vegetated state with the intent to significantly reduce nutrient loadings
associated with agricultural practices into streams.
C. To provide mitigation and sell any resulting Riparian Buffer Credits to third parties in the
Randleman Lake Watershed for development (both existing and proposed) requiring such
mitigation.
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 for impacts requiring such mitigation.
B. The GSA for the Bank Parcel under this Instrument is limited to the Randleman Lake
Watershed of the Cape Fear River Basin.
C. Sale or transfer of Riparian Buffer from the Bank Parcel shall be limited to the Randleman
Lake Watershed, in accordance with 15A NCAC 02B .0295 and 15A NCAC 02B .0724.
D. The Bank Parcel is comprised of land on a single parcel in Randolph County, NC (Parcel ID
No: 7747448578 and is currently used for hay production, with the unnamed tributaries
draining to Randleman Lake.
E. The following table (Table 1) provides site-specific details of the Bank Parcel proposed
under this Instrument, that is within the Randleman Lake Watershed.
3
Table 1: Bank Parcel Details
Bank
Parcel
Name
DWR
Project #:
County 12-Digit
Hydrologic
Unit Code
Project
Location
Named
Receiving
Stream
Primary
Land Use
Hobby Hill 2023-0748
v1
Randolph 030300030106 35.872444, -
79.859111
UT to
Randleman
Lake
Hayfield
III. AUTHORITIES
A. The Bank Parcel will be used to provide Riparian Buffer 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 General Statutes
(NCGS) and rules for the Randleman Lake Water Supply Nutrient Management Strategy.
C. The selling of credits generated from the Bank Parcel approved under this Instrument, shall
be consistent with approved North Carolina (" State") statutes and rules for the Randleman
Lake Water Supply Nutrient Management Strategy.
D. Buffer mitigation activities proposed under this Instrument and corresponding BMPs to
generate Riparian Buffer shall be consistent with State statutes and rules for the
Randleman Lake Water Supply Nutrient Management Strategy that are in place at the time
complete BMP is submitted to DWR.
IV. ESTABLISHMENT OF THE BANK PARCEL
A. In accordance with 15A NCAC 02B .0295, 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 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 identifies features (streams and ponds,
etc.) that meet general criteria to be suitable to generate Riparian Buffer Credits. Table 2
below outlines when the Site Viability Letter was issued by DWR for the mitigation site
proposed under this Instrument:
Table 2: Site Viability Letter Details
Bank Parcel Name NCDWR Site Visit Viability Letter
Received
Viability Letter
Expiration Date
Hobby Hill August 29, 2023 October 24, 2023 October 24, 2025
B. A valid Site Viability Letter is required prior to submittal of the BMP. Site Viability Letters
will either expire on the dates listed in the letter or upon the submittal of an individual As -
Built Report to the DWR, whichever comes first. If a Site Viability Letter expires prior to
4
submittal of a complete BMP 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 BMP be
submitted to, and approved by, the DWR prior to use of the Bank Parcel for buffer
mitigation purposes or sale or transfer of any associated credits.
D. The BMP submitted under this instrument will be placed on public notice and made
available for public commenting for 15 calendar days.
E. In general, Riparian Buffer Credit on the Bank Parcel may be achieved through restoration,
enhancement, or preservation of the riparian areas as they are defined in 15A NCAC 02B
.0724, and other riparian areas allows per 15A NCAC 02B .0295 (n) and (o) where
applicable. Riparian Buffer Credits are only attainable if the width of the restored riparian
areas are at least twenty (20) feet as measured perpendicular from tops of banks along
viable streams. Riparian Buffer Credits are attainable to a maximum of 200 feet from tops
of banks. A conservation easement will be secured to include the tops of all stream channel
and will extend out a maximum of 200 feet. The viability of features to generate Riparian
Buffer Credits is provided in the Site Viability Letters for the Bank Parcel.
F. The Bank Parcel is intended to provide Randleman Riparian Buffer Credit as follows:
1. Planting hardwood trees and shrubs on a Restoration Site as defined in 15A NCAC
02B .0295 (b) adjacent to streams.
2. Planting hardwood trees and shrubs on a Restoration Site as defined in 15A NCAC
02B .0295 (b) adjacent to ephemeral channels as allowed in 15A NCAC 02B .0295
(o).
3. Planting hardwood trees and shrubs on an Enhancement Site as defined in 15A
NCAC 02B .0295 (b).
4. Maintaining a Preservation Site as defined in 15A NCAC 02B .0295 (b) along streams
as allowed in 15A NCAC 02B .0295 (o) by placing a conservation easement around
riparian areas.
V. PRE-CONSTRUCTION DOCUMENTATION FOR THE BANK PARCEL
Buffer Mitigation Plan
A. The BMP submitted under this Instrument shall be submitted to DWR for review and must
be approved by DWR prior to any construction on the corresponding Bank Parcel. The BMP
will describe any changes that have occurred to the site between the date of the Site
Viability Letter and the date the BMP is submitted to DWR. The BMP 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
activities including detailed vegetation plan; 4) monitoring and maintenance plans; 5)
financial assurances; 6) a Project Credit Table (see Attachment C) showing associated buffer
mitigation credit calculations, which shall include credit generation, service area, and
accounting as appropriate for each regulatory authority; and 7) stream determination letter
from DWR; 8) Site Viability Letter from DWR, 9) service area figure for each mitigation type
5
proposed under this Instrument; and 10) 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, enhancement, and/or preservation activities or proposed construction
within riparian buffers and other riparian areas on the Bank Parcel to produce Riparian
Buffer 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 or a denial of the Bank Parcel to generate riparian
buffer credits.
D. Requests for deviation from the approved BMNOP must be submitted to DWR in writing.
Written approval from the DWR must be received prior to implementing any deviation
from the approved BMP.
Property Disposition & Long -Term Management for the. Bank Parcel
E. Prior to the release of any credits, the Sponsor shall record permanent conservation
easements at the appropriate county Register of Deed' s office that is sufficient to ensure
protection, operation and maintenance of restored riparian and other riparian areas in
perpetuity.
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 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.
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 submittal of the Year 4 Monitoring Report. 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 end of the fourth-year
monitoring period. A land trust must be certified under 501(c)(3) of the Internal Revenue
Code.
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 BMP.
6
Financial Assurances for Bank Parcel Development
J. Following approval of the Bank Parcel’s BMP, the Sponsor shall provide a Performance/
Maintenance Bond from a surety company that is rated no less than an " A-" as rated by
A.M. Best, to construct the Bank Parcel, in its entirety, according to the approved BMP. 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/s shall be 100% of the estimated cost for
implementation of the riparian restoration activities and other related activities for the
construction of the Bank Parcel as described in the approved BMP. 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
Bank Parcel, in its entirety, prior to the first credit release.
M. Once DWR has released all credits for completion of all listed below, then the Sponsor will
be released from its performance obligations under the applicable performance bond
required in Item J and K of this section:
1. Instrument and BMP Approved by DWR, Conservation Easement Recorded,
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. As -Built Report as described in Section VI has been received by DWR; and
4. DWR has submitted a written approval of the As -Built Report
N. To comply with this section, DWR must be on all performance bonds.
VI. POST-CONSTRUCTION DOCUMENTATION FOR THE BANK PARCEL
As-Built Report
A. The Sponsor agrees to perform all necessary work to operate and maintain the Bank
Parcel(s) consistent with the operation and maintenance criteria established in the
approved BMP until Item B (1) and (2) of Section IX have been satisfied.
B. Within 30 calendar days after completing the establishment of the buffer mitigation areas,
the Sponsor will submit written notification to DWR documenting that all buffer mitigation
activities have been completed. Failure to submit written notification within 30 days may
result in a 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 BMP;
2. Figures representing all riparian restoration, riparian enhancement and riparian
preservation activities where applicable;
7
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 BMP;
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 from what was proposed in the approved BMP.
C. The Sponsor will submit an as -built plan and report for the Bank Parcel, after completing
the riparian buffer mitigation activities. The As -built Report will be submitted to DWR and
describe any deviation from the approved BMP and will document all the following:
1. Riparian restoration, enhancement, and preservation planting details, invasive
species control, confirmation of fence installation if applicable, cattle exclusions if
applicable, confirmation that all easement boundary markers are installed,
monitoring device locations, vegetation plot locations and photo point locations as
appropriate, and confirmation that all boundary markers are installed.
2. Boundary Survey of the conservation easement area, signed and sealed by a
licensed surveyor, including an inventory of the final riparian buffer mitigation areas
in both square feet and acres.
3. As -built map of the riparian buffer mitigation areas showing where riparian
restoration was performed and any deviations to the Bank Parcel from what was
approved in the BMP.
4. Aerial map of the riparian restoration activities approved in the BMP.
Financial Assurance for Bank Parcel Monitoring
D. After completion of the riparian restoration activities and construction on the Bank Parcel,
in its entirety, a separate Performance/ Maintenance Bond will be secured for 100% of the
estimated cost to implement the monitoring and maintenance plan as described in the
approved BMP and As Built Report for the site. The Bond must be from a surety company
that is rated no less than an “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 each
annual bond renewal.
E. Each Performance/ Maintenance Bond shall be secured each year for a minimum of five
years, and until DWR has released all Riparian Buffer Credits to the Sponsor. Upon DWR
approval, the bond may be lowered each year based on the adjusted cost to complete the
monitoring. No bond shall be less than $ 100,000 to cover monitoring and maintenance
costs initially.
F. Once DWR has released 100% of all credits for completion of all Bank Parcel milestones
described in Table 3 of Section VIII and in the corresponding BMNOP, the Sponsor will be
released from its performance obligations under the performance bond required in “C—D”
of this Section.
G. To comply with this section, DWR must be the Obligee on all performance bonds.
8
Monitoring and Maintenance Reports
H. The Sponsor shall monitor the Bank Parcel, in its entirety, as described in the BMP 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 for the Bank
Parcel.
I. Performance Standards for Vegetation: Native hardwood trees or native hardwood trees
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 BMP for approval. Some
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 this Bank Parcel, as 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 for an individual Bank Parcel,
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 monitoring report.
L. Monitoring Reports for Riparian Buffer 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 at
the date of acceptance of the BMP. The Sponsor shall submit an annual monitoring report
for the Bank Parcel no later than December 31st of each year for a minimum of five
consecutive years after the first full growing season for the Bank Parcel under this
Instrument. This report will describe the conditions of the Bank Parcel, including an
evaluation of the performance standards of the vegetation contained within the approved
BMP. 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 location 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 and
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
9
7. Corresponding Mitigation Transfer Certificates upon request; and
8. Proof of performance bond renewal to cover the next monitoring year (when
applicable).
Contingency Plans/Remedial Actions
M. In the event the Bank Parcel fails to achieve the success criteria described in this
Instrument and the approved BMP, 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 BCAC 02B .0295 (m)(n) following guidance provided in the Clarified
Procedures for Calculating Buffer Mitigation Credits and Nutrient Offset Credits letter issued
by DWR (see references) including the most recent Project Credit Table template provided
online (Appendix C).
B. Riparian buffer restoration on the Bank Parcel, as described in 15A NCAC 02B .0295 (n) and
(o) can be used for Riparian Buffer Credit.
C. Riparian buffer enhancement on the Bank Parcel covered under this Instrument, as
described in 15A NCAC 02B .0295 (n) and (o), can only be used for Riparian Buffer Credit.
D. Riparian buffer preservation on the Bank Parcel covered under this Instrument, as
described in 15A NCAC 02B .0295 (o) and defined in 15A NCAC 02B .0295 (b) can be used
for Riparian Buffer Credit.
E. Riparian Buffer Credit is defined as one (1) buffer credit per square foot or 43,560 buffer
credits per one (1) acre.
10
VIII. CREDIT RELEASE SCHEDULE
A. Upon submittal of all appropriate documentation by the Sponsor, and subsequent approval
by DWR, it is agreed that Riparian Buffer Credits associated with the Bank Parcel under this
Instrument will become available to sell to a third party in accordance with the Credit
Release Schedule in Table 3.0 below:
Table 3.0 – Credit Release Schedule for Riparian Buffer Credits
Task Project Milestone
% Credit
Available for
Sale
1 Instrument and BMP Approved by DWR, Conservation Easement
Recorded*, Financial Assurance Posted 20
2
Mitigation Site Earthwork, Planting and Installation of Monitoring
Devices Completed, Easement Boundaries 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
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 BMP
B. DWR may modify the credit release schedule 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 of riparian buffer credits will be generated by
the Bank Parcel.
11
IX. PROCEDURE FOR DEBITING AND CREDITING MITIGATION CREDITS
Credit Ledger
A. The Sponsor shall maintain one credit ledger for each mitigation type for the Bank Parcel
proposed under this Instrument, unless otherwise instructed by DWR in the approved BMP.
Credit ledgers shall provide the accounting for Riparian Buffer Credits in square feet and
acres.
B. Each credit ledger shall be submitted on a separate 8 ' h- in X 11- in spreadsheet with
legible font style and font size. All ledgers shall be submitted using the templates provided
in Attachment B of this Instrument or any updated versions to these templates as provided
by DWR.
Credit Processing
C. Riparian Buffer Credits must be calculated for the Bank Parcel using the most recent Project
Credit Table template (see Attachment C) which is reference in the guidance provided in
the Clarified Procedures for Calculating Buffer Mitigation Credits and Nutrient Offset Credits
Letter issued by DWR, see references.
D. Riparian Buffer Credits generated on the Bank Parcel will be used to provide mitigation for
authorized buffer impacts within the Randleman Lake Watershed in accordance with 15A
NCAC 02B .095 (f) and (g).
E. Riparian Buffer Credits generated on the Bank Parcel are not transferable into nutrient
offset credits.
F. The Sponsor shall obtain written verification of buffer mitigation need from a designated
local government within the Randleman Lake Watershed or from DWR prior to debiting
Riparian Buffer Credits from the Bank Parcel.
G. All credit and debit transactions for the Bank Parcel under this Instrument shall be
accurately depicted in the credit ledgers. The Sponsor shall submit accurate and up-to-date
credit ledgers for the Bank Parcel by the tenth (10th) of each month. At a minimum and only
upon request, DWR shall receive a hard copy of updated credit ledgers along with the
corresponding Mitigation Credit Transfer Certificates (“Certificate”) and all corresponding
letters from the designated 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
H. All credit sales will include a Mitigation Credit Transfer Certificate (“Certificate”) that is
required to be provided to the buyer of Riparian Buffer credits, that will include, at a
minimum, the following information:
12
1. Bank Details: (1) sponsor Name, (2) Bank Parcel name, (3) DWR project number for
the BMP.
2. Credit Details: (1) date of receipt, (2) identify if full or partial payment, (3) amount of
buffer credits in (sf) and confirmation from DWR or the designated 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) river basin, (4)
nutrient strategy applicable to the project with impacts, (5) DWR authorization
number or designated local government requiring Riparian Buffer Credits for this
project.
I. 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 cease, and the DWR, in consultation with the Sponsor, will determine what
remedial actions are necessary.
X. BANK PARCEL CLOSURE
A. Bank Parcel Closure for the Bank Parcel under this Instrument shall be identified as the
event when the Sponsor is relieved of all of its responsibilities to the Bank Parcel and there
are no mitigation 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 Item B of 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 a zero-
credit balance have been submitted and approved by DWR.
XI. GENERAL PROVISIONS FOR THE BANK PARCEL
A. Upon the presentation of proper credentials, and during normal business hours, the
Sponsor and the landowner shall grant permission to the Director of DWR, and/or an
authorized representative of the Director of DWR, to enter the property containing the
Bank Parcel(s).
B. Amendments: This Banking Instrument may be amended or modified only with written
approval of all signatory parties.
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.
13
D. Force Majeure: After 100% of all the credits have been released according to the credit
release schedule in Section VIII and confirmation has been received by the 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 Parcel 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 DWR has released all of the credits, 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.
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. Insurance of Site Viability Letter,
3. BMP review and approval of items listed 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.
14
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, 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 Sponsor: Terra 2023, LLC
Attn: Michael Beinenson
117 Centrewest Court
Cary, NC 27513
mitigation@ecoterra.com
If to DWR: NC Division of Water Resources – 401 & Buffer Permitting Branch
Attn: Nutrient Offset and Buffer Mitigation 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.
TERRA 2023, LLC
By: (Print)
(Signature)
Title:
Date:
NORTH CAROLINA DEPARTMENT OF ENVIRONMENT AND NATURAL RESOURCES DIVISION OF WATER
RESOURCES
By: (Print)
(Signature)
Title:
Date:
Updated
Riparian Buffer Mitigation Program September 29, 2020
Authorities for Randleman Lake Watershed
ATTACHMENT A
Authorities pertaining to the Hobby Hill Mitigation Banking Instrument
All Basins
General Statutes:
G.S. §143-214.11 Ecosystem Enhancement Program
G.S. §143-214.20-24 Riparian Buffer Protection Program
G.S. §143-214.7 Stormwater runoff rules and programs
G.S. §143-215.SB Basinwide Water Quality Management Plans
Session Laws
S.L. 2016-94
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:
lSA NCAC 02B .0202 Definitions
lSA NCAC 02B .0223 Nutrient Sensitive Waters
lSA NCAC 02B .0240 Nutrient Offset Payments
1 SA NCAC 02B .0295 Mitigation Program Requirements for Protection and Maintenance of Riparian Buffers
Randleman Lake Water Supply Watershed Buffer Nutrient Strate2y
Session Laws
S.L. 2011-394
S.L. 1999-329 (part ofG.S. 143B-282)
Administrative Rules:
ISA NCAC 02B .0610 Managing Activities within Riparian Buffers: Definitions
15A NCAC 02B .0611 Managing Activities within Riparian Buffers: Authorization Certificates
ISA NCAC 02B .0612 Managing Activities within Riparian Buffers: Forest Harvesting Requirements
lSA NCAC 02B .0724 Protection & Maintenance of Existing Riparian Buffers
*Credits shown below are only for mitigation credits approved by the MBI, BMP, and As-Built.
Sale/
Release Date
Purchaser or % Credit
Release Project w/ HUC #Gov't
Requiring
Square Feet Acres Square Feet Acres Square
Feet Acres
Credits
Released/Available to
Bank
Credits Debited/Sold
From Bank Buffer Credit Balance
Terra 2023, LLC Hobby Hill MBI
Hobby Hill HUC 03030003, Buffer Credit Ledger
Date Last Updated:
DWR Bank Parcel Project #: 2023-0748 V1
Total Credits Released To Date:
Table 1. Hobby Hill Riparian Buffer Mitigation Bank, NCDWR Project #2023-0748 V1, 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)
———
———
———
———
———
———
———
———
———
———
———
———
———
———
———
———
———
———
———
Totals (ft2):0 0 0.000 0.000 0.000
Total Buffer (ft2):0 0
Total Nutrient Offset (ft2):0 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 —
—
—
—
—
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:0.000
Phosphorus:0.000
Cape Fear - Randleman
N/A
N/A
Restoration:
Enhancement:
Mitigation Totals
0
TOTAL AREA OF BUFFER MITIGATION (TABM)
TOTAL NUTRIENT OFFSET MITIGATION
Mitigation Totals
Nutrient Offset:
Preservation:
Total Riparian Buffer:
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