20180181 Ver 3_Credit Release_Task 6

DocuSign Envelope ID: A93CC272-E255-4BO8-A936-AE779950036C
ROY COOPER
Governor
ELIZABETH S. BISER
Secretary
RICHARD E. ROGERS, JR.
Director
NORTH CAROLINA
Environmental Quality
April 12, 2024
DWR Project#: 2018-01810
Water & Land Solutions, LLC Wayne County
Attn:Tommy Cousins
(via electronic mail: toMM&waterlandsolutions.com
Re: Scarborough Mitigation Banking Instrument (MBI)
Scarborough Bank Parcel Credit Release — Task 6
Dear Mr. Cousins:
On November 28, 2023, the Division of Water Resources (DVv'R) received a Year 3 Monitoring
Report from Water & Land Solutions, LLC (WLS) for the Scarborough site. Overall, site conditions
were satisfactory with performance standards for vegetation met across most of the site. No
encroachment within the conservation easement areas was observed. WLS performed supplemental
planting efforts in areas of low vigor and low density and submitted documentation to DWR that all
plantings had been completed. Lastly, according to information provided in the report, "all coastal
headwater reaches are meeting the requirementsfor coastal headwater channelformation ". On
April 12, 2024, the United States Army Corps of Engineers (USACE) issued a credit release
approving the Year 3 monitoring report for the stream and wetland bank.
DWR received a continuation certificate and rider for performance bond (#SUR2003575) issued to
WLS from Frankeninuth Mutual Insurance Company, in the amount of $40,000, to cover monitoring
and maintenance at the subject site. WLS will be unable to reduce the performance bond any further
until approval of the Year 7 monitoring reports. The term of the current bond ends with the approval
of the Year 4 Monitoring Report by the DWR. Future credit releases will be dependent on both the
renewal of this performance bond and the annual monitoring reports.
In accordance with the MBI, signed on November 18, 2019, the following Project Milestones have
been met and the corresponding credits shall be released:
Task/Milestones
6) Monitoring Report #3 Approved by the DVvR & financial
assurance renewed
credifiq
Nitrogen
Riparian
Credits
Buffer
Credits
10%
5%
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
919.707.9000
4NORT�HCA�RCLINA�

DocuSign Envelope ID: A93CC272-E255-4BO8-A936-AE779950036C Scarborough Site
Water & Land Solutions, LLC
April 12,2024
By copy of this correspondence, DWR confirms that you have satisfied the above requirements for
the above -referenced tract and the following credits are being released and made available to sell:
* 10% of your Nitrogen nutrient offset credits (0. 10 x 35,390.92 lb-N = 3,539.09 lb-N)
* 5% of your Neuse riparian buffer restoration credits (0.05 x 694,782 ft2 = 34,739.10 ft')
Please note that nutrient offset credits generated at this site must be used for impacts in HUC
03020202 of the Neuse River Basin pursuant to 15A NCAC 02B .0703, which became effective
on April 1, 2020. Additionally, the riparian buffer credits must be used for impacts in the
Neuse River Basin, excluding the Falls Lake Watershed, in accordance with guidelines in the
Consolidated Buffer Mitigation Rule, 15A NCAC 02B .0295, which became effective on
November 1, 2015.
Upon receiving this correspondence update credit ledgers accordingly. Please feel free to contact
Katie Merritt at katie.merrittkdeq.nc.gov if you have any questions regarding this correspondence.
Cc: DWR File Copy (Blake Hartshorn)
Riane Welborn (WLS via electronic mail)
Sincerely,
DocuSigned by:
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Michael Pjetraj, Deputy Director
Division of Water Resources
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