20160255 Ver 2_Partial task 9 release_20240116

DocuSign Envelope ID: E25A49A9-CC9F-4993-BD11-17El l2099351
ROY COOPER
Governor
ELIZABETH S. BISERr,z.� a2
Secretary
RICHAM E. ROGERS, JR. NORTH CAROLINA
Director Environmental Quality
January 16, 2024
John Hutton
Wildlands Holdings IV, LLC
312 West Millbrook Rd, Suite 225
Raleigh, NC 27609
(via electronic mail: jhuttonkwildlandseng com )
DWR Project #: 2016-0225v2
Re: Cane Creek Umbrella Mitigation Banking Instrument (UMBI)
South Fork Nutrient Offset & Buffer Mitigation Bank
Credit Release— Task 9 (partial)
Dear Mr. Hutton:
Alamance County
On September 18, 2023, the Division of Water Resources (DWR) received a Year 5 Monitoring
Report from Wildlands Engineering, Inc. on behalf of Wildlands Holdings IV, LLC (Wildlands) for
the South Fork site. On November 7, 2023, Andrew Friedman -Herring and Katie Merritt with the
DWR, visited the Site to compare vegetation data submitted in the report with onsite conditions and
to evaluate the Site for closeout of the monitoring requirements for the buffer mitigation and nutrient
offset bank. While evaluating the site, DWR observed the need for sweet gum thinning as well as
supplemental planting in areas void of stems where stem densities were not meeting performance
criteria.
As a result of the site visit evaluation, Ms. Merritt does not support closing out the Site at this time.
A partial credit release of 5% is being issued with the remainder 5% to be issued upon confirmation
that all supplemental planting and thinning efforts have been fully implemented as indicated in the
attached site notes provided by Wildlands.
In February of 2023, DWR received a continuation certificate and bond rider for the performance
bond (#107063164) in the amount of $20,000 issued to Wildlands from Travelers Casualty and
Surety Company of America, to cover monitoring and maintenance at the subject site. The term of
this bond ends with DWR approval of the Year 5 Monitoring Report. Until DWR has approved the
Year 5 Monitoring report, this bond shall remain active.
In accordance with the UMBI, signed on March 6, 2018, the following Project Milestones have been
partially met and the corresponding credits shall be released:
Task/Milestones Credit
9) Monitoring Report #5: Approved by the DWR & final site visit by DWR 5%
has been conducted (partial)
D E Q ,fJ North Carolina Department of Environmental Quality I Division of Water Resources
512 North Salisbury Street 1 1611 Mail Service Center I Raleigh, North Carolina 27699-1611
NORTH CAROLINA (J1(�.'�O'�.(�OQO
Department of Emlmnmenfal Duali�

DocuSign Envelope ID: E25A49A9-CC9F-4993-BD11-17E112099351
South Fork Site
Wildlands
January 16, 2024
By copy of this correspondence, DWR confirms that you have partially satisfied the above
requirements for the above -referenced tract. Therefore, 5% of your Jordan Lake riparian buffer
Restoration and Enhancement credits (0.05 x 30,955 ft2=1,547.75 ft2) as well as 5% of your Jordan
Lake riparian buffer Enhancement (via cattle exclusion) and Preservation credits (0.05 x 187,561 ft2
= 9,378.05 ft2) are being released and are now available to sell.
Additionally, 5% of your generated nitrogen offset credits (0.05 x 11,066.85 = 553.34 lb-N) and
5% of your generated phosphorus credits (0.05 x 707.55 = 35.38 lb-P) are now released.
Generated credits are credits that have not been applied to the appropriate delivery factor.
The delivery factors applied to this bank due to its location in the 14-digit HUC 03030002050050 are
71 % for nitrogen and 67% for phosphorous. Therefore, the total amounts of delivered nutrient offset
credits for this site are 7,857.46 lb-N and 474.06 lb-P. By copy of this correspondence, 5% of your
delivered nitrogen offset credits (0.05 x 7,857.46 lb-N = 392.87 lb-N) and 5% of our delivered
phosphorus credits (0.05 x 474.06 = 23.70 lb-P) are being released and are now available to sell.
Please note that of the nutrient offsets, only the delivered nutrient offset credits can be sold
from this bank and used for impacts in the Haw River Arm of Jordan Lake within the Cape
Fear River Basin in accordance with 15A NCAC 02B .0703, which became effective on April 1,
2020. Additionally, riparian buffer credits can only be used to offset impacts located in the
Haw River Sub Watershed of Jordan Lake according to 15A NCAC 02B .0295, which became
effective on November 1, 2015.
Upon receipt of this correspondence, update all credit ledgers accordingly. Please feel free to call
Katie Merritt at [phone] if you have any questions regarding this correspondence.
Sincerely,
EsDocuS,igwned ,by: �A
fl�(' CIfJSS
755ABFOCD8OB428...
Stephanie Goss, Supervisor
401 & Buffer Permitting Branch
Attachments: Meeting Notes (November 7, 2023)
cc:File Copy (Blake Hartshorn)
Camden Brunick — Wildlands (via electronic mail)
Page 2 of 2

DocuSign Envelope ID: E25A49A9-CC9F-4993-BD1 1-1 7E1 12099351
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WILDLANDS
ENGINEERING
MEETING NOTES
MEETING: DWR Monitoring Year 5 On -Site Closeout Visit
South Fork Nutrient Offset and Buffer Mitigation Bank Parcel
Cape Fear River Basin (Haw River Sub -Watershed of the Jordan Lake Watershed)
DWR# 2016-0225v2
DATE: November 7, 2023
LOCATION: Johnny Lindley Road
Siler City, NC
Attendees
Katie Merritt, DWR
Andrew Friedman -Herring, DWR
Meeting Notes
Katilyn Hogarth, Wildlands
Andrew Radecki, Wildlands
Representatives of Wildlands Engineering, Inc (Wildlands) met with representatives of the North Carolina
Department of Environmental Quality Division of Water Resources (DWR) to perform a Monitoring Year 5 on -
site closeout visit. During the visit DWR determined the suitability of the project for completion of Task 9, which
is outlined within the DWR approved Cane Creek Umbrella Mitigation Banking Instrument. The following notes
provide a summary of on -site discussions.
• Wildlands is to plant approximately 30-50 containerized stems spread out between portions of SF4A and
UT1. These are within Riparian Restoration for Buffer Credit areas which did not have high enough stem
density to meet the final criterion of 260 stems per acre (Figure 1).
o Within the planting area along SF4a, Wildlands will perform ring sprays to control competing
Fescue (Festuca sp.) within the easement.
o Prior to planting within the area at the top of UT1, Wildlands will brush cut blackberry shrubs
(Rubus sp.).
o Persimmon (Diospyros virginiana) is proposed as an alternative species to be included in the
planting. Other species planted will be those which were included in the DWR approved Bank
Parcel Development Package.
• Sweetgum (Liquidambar styraciflua) was denser than desirable along a portion of UT2 near vegetation
plot 4. No corrective action was required by DWR; however, Wildlands will thin Sweetgum stems within
this area.
W Wildlands Engineering, Inc. page 1
South Fork Nutrient Offset and Buffer Mitigation Bank Parcel
November 7, 2023 DWR Monitoring Year 5 On -Site Closeout Visit

DocuSign Envelope ID: E25A49A9-CC9F-4993-BD1 1-1 7E1 12099351
• The supplemental planting which took place in February 2023 along UT2 and a small portion of UT1 was
sufficient in boosting stem density and diversity. Supplemental stems showed high rates of survival.
• A gate located at the top of UT1 which had been found closed during previous boundary inspections by
Wildlands staff was found open during the visit. The gate is located outside the easement; however, the
easement can be accessed through this gate from an adjacent field. Cattle were not in the field at the
time of the visit, and therefore did not access the easement through the open gate. Furthermore, there
was no evidence cattle had accessed the easement prior to the site visit. The gate was closed.
Next steps
• Wildlands notifies DWR upon completion of supplemental planting and associated brush cutting and
ring sprays.
W Wildlands Engineering, Inc. page 2
South Fork Nutrient Offset and Buffer Mitigation Bank Parcel
November 7, 2023 DWR Monitoring Year 5 On -Site Closeout Visit

DocuSign Envelope ID: E25A49A9-CC9F-4993-BD1 1-1 7E1 12099351
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Conservation Easement (18.13 ac)
- Project Streams and Vernal Pools (2.42 ac)
Internal Crossing
South Fork Credit Zones
Restoration 0-100' (4.92 ac)
= Restoration 0<50' (0.48 ac)
Enhancement 0-100' (0.47 ac)
Cattle Exclusion 0-100' (8.52 ac)
Preservation 0-100' (0.44 ac )
No Credit ( 0.88 ac)
Supplemental Planting
❑ Vegetation Plot
K — Project Fencing
V
Figure 1. Closeout Visit Map
W I L D L A N D S South Fork Nutrient Offset and Buffer Mitigation Bank Parcel
E N G I N E E R I N G
Monitoring Year 5
Cape Fear River Basin 03030002
Q 250 500 Feet
A