20110720 Ver 2_Credit Release Task 4_20160106

Water Resources
ENVIRONMENTAL QUALITY
January 6, 2016
PAT MCCRORY
Governor
DONALD R. VAN DER VAART
secretary
S. JAY ZIMMERMAN
Director
DWR Project #: 2011-0720v2
Orange County
Ms. Daniel Ingram
Resource Environmental Solutions, LLC
302 Jefferson Street, Suite 110
Raleigh, NC 27605
Re: Upper Neuse River Basin Umbrella Mitigation Banking Instrument (UMBI)
Cedar Grove Bank Credit Release — Task 4
Dear Mr. Ingram:
On November 30, 2015, the Division of Water Resources (DWR) received a Year 1 Monitoring
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).
On January 4, 2016, DWR received two bond riders and a continuation certificate for
performance bond (#RLB0016052) issued to EBX to cover monitoring and maintenance at the
subject site. The term of this bond applies from January 1, 2016 to December 31, 2016.
Therefore, EBX is required to renew the performance bond prior to December 31, 2016 and is
required to renew the bond annually for at least 3 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
4) Year 1 Monitoring Report approved by DWR
Credit
10%
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 = 354.58 lb -P) are available for sale.
State of North Carolina I Environmental Oualitv I Water Regnurces
1617 Mail service Center I Raleigh, North Carolina 27699-1617
919 8076300

Cedar Grove Bank Site
January 6, 2016
Page 2 of 2
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 November 1, 2015.
Please feel free to call Katie Merritt at [phone] if you have any questions regarding this
correspondence.
Sincerely,
Karen Higgins, Supervisor
401 and Buffer Permitting Branch
KAH/km
cc:File Copy (Katie Merritt)
Cara Conder — EBX (via electronic mail)