20220293 Ver 2_Credit Release Task 2 and 3

DocuSign Envelope ID: 147D8CAF-2F8A-4596-B7A6-B7E90C23F257
ROY COOPER
Governor
ELIZABETH S. BISER
Secretary
RICHAM E. ROGERS, JR. NORTH CAROLINA
Director Environmental Quality
May 23, 2024
Eco Terra, LLC DWR Project #: 2022-0293v2
Attn: Michael Beinenson Wayne County
(via electronic mail: [e-mail] )
Re: Britt and Hales Mitigation Banking Instrument (MBI)
Britt and Hales Bank Parcel Credit Release — Tasks 2 & 3
Dear Mr. Beinenson,
On April 25, 2023, the Division of Water Resources (DWR) received documentation from Eco Terra,
LLC (EcoTerra) that the Britt & Hales site had been planted and constructed in its entirety and
monitoring plots had been installed. On May 8, 2023, staff with DWR, with assistance from staff
with EcoTerra, inspected the site and confirmed that the subject site had been mostly adequately
planted and that all monitoring plots were installed. Additionally, the conservation easement
boundary for the site was adequately marked. DWR observed that additional easement signage was
needed in some areas and that additional stems needed to planted along the tops of banks of features.
Documentation of completed efforts noted at the site visit by DWR have been provided.
On November 1, 2023, the DWR received an As -Built Report from EcoTerra for the site. DWR
provided comments to EcoTerra that were addressed in the revised As -Built Report and
corresponding Compliance Action Plan submitted on May 10, 2024. Additional corrected figures
provided on May 23, 2024. According to the As -Built survey and corresponding project credits table
submitted with the As -Built Report, there are slight adjustments in the total amounts of Riparian
Buffer credits and Nutrient Offset credits as compared to the approved Bank Parcel Development
Package. The subject site has generated 332,487 ft2 of buffer restoration credits, 1,470.870 ft2 of
buffer preservation credits and 635,263 ft2 (33,148.872 lbs-nitrogen) of nutrient offset credits.
DWR received a performance bond (#3803011) issued to Eco Terra from Great American Insurance
Company, in the amount of $150,000, to cover both performance and monitoring obligations for the
construction implementation and monitoring of the subject site. The term of this bond will remain in
effect until DWR provides written approval of the Year 5 monitoring report. By copy of this
correspondence, DWR approves a reduction in the current bond amount of $150,000 to $100,000.
In accordance with the MBI, signed on April 21, 2023, and the Compliance Action Plan effective
April 25, 2024, the following Project Milestones have been met and the corresponding credits shall
be released:
D E Q �/ North Carolina Department of Environmental Quality I Division of Water Resources
v 512 North Salisbury Street 1 1611 Mail Service Center I Raleigh, North Carolina 27699-1611
NORTH nt of Em no 919.707.9000
Department M Envlronman�al Duali�

DocuSign Envelope ID: 147D8CAF-2F8A-4596-B7A6-B7E90C23F257 Britt and Hales Site
Eco Terra
May 23, 2024
Task/Milestones Credit
2) All mitigation activities, including riparian earthwork, planting & installation 10%
Of monitoring devices completed, easement boundaries adequately marked,
And all applicable permits obtained. A site visit by DWR has been conducted
3) Monitoring Financial Assurance posted and Approval of As -Built 5%
Report
Total 15%
By copy of this correspondence, DWR confirms that you have satisfied the above requirements for
the above -referenced tract and the following credits are released to sell:
• 15% of the Neuse buffer Restoration credits (0.15 x 332,487 ft2 = 49,873.05 ft2) minus
116.50 ft2 yields 49,756.550 ft2
• 15% of the Neuse buffer Preservation credits (0.15 x 1,470.870 ft2 = 220.631 ft2)plus
13.522 ft2 yields 234.152 ft2
• 15% of the Nitrogen nutrient offset credits (0.15 x 33,148.872 lb-N = 4,972.331 lb-N) minus
0.209 lb-N yields 4,972.122 lb-N
Please note that nutrient offset credits generated at this site must be used for impacts in HUC
03020201 of the Neuse River Basin excluding the Falls Lake Watershed 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 Buffer Mitigation Rule, 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 contact
Katie Merritt at katie.merrittkdeq.nc.gov if you have any questions regarding this correspondence.
Sincerely,
DocuSigned by:
5��� GbSS
755ABFOCD808428...
Stephanie Goss, Supervisor
401 & Buffer Permitting Branch
Attachments: Compliance Action Plan w/ modified credit release schedule
cc:File Copy (Blake Hartshorn)
Page 2 of 2

DocuSign Envelope ID: 147D8CAF-2F8A-4596-B7A6-B7E90C23F257
ROY COOPER
Governor
ELIZABETH S. BISER
Secretary
RICHAM E. ROGERS, JR.
Director
DATE: April 22, 2024
TO: Michael Beinenson
Eco Terra, LLC
[ oluMvfo%
NORTH CAROLINA
Environmental Quality
FROM: Katie Merritt
Nutrient Offset & Buffer Banking Coordinator
THROUGH: Stephanie Goss
Supervisor — 401 & Buffer Permitting Branch
SUBJECT: Compliance Action Plan Agreement between DWR and Eco Terra, LLC to address
non-compliance with the Joshua Creek Mitigation Banking Instrument and corresponding Bank
Parcel Development Package and the Britt & Hales Mitigation Banking Instrument and
corresponding Bank Parcel Development Package
COMPLIANCE ACTION PLAN FOR ECO TERRA, LLC
In 2023, Eco Terra, LLC (Eco Terra) submitted two draft Mitigation Banking Instruments (MBI) for
two proposed bank parcels known as the Britt & Hales Mitigation Bank Parcel (Britt & Hales) and
the Joshua Creek Mitigation Bank Parcel (Joshua Creek), identifying as the "Bank Sponsor" to the
Division of Water Resources (DWR) for their review and approval. Additionally, the DWR received
two separate draft Bank Parcel Development Packages (Plans) for Britt & Hales and Joshua Creek
from Eco Terra.
Prior to receiving approvals for the two MBI documents and the two Plans, the DWR discovered that
Eco Terra had implemented all mitigation activities on the two bank parcels, which included planting
trees, installing easement boundaries, performing culvert maintenance, installing monitoring plots
and applying seeding. All activities were described in detail within the draft Plans, which had yet to
be approved in writing by the DWR but had been placed on Public Notice and made available for
public commenting. The public notice, which was agreed to by Eco Terra in the two draft MBI
documents, had not concluded at the time Eco Terra had performed these activities.
On May 4, 2023, Katie Merritt with the DWR, notified Eco Terra via email, of non-compliance.
This non-compliance was primarily associated with planting and constructing two nutrient offset and
buffer mitigation projects specifically to generate nutrient offset credits and/or riparian buffer credits,
without first having approvals of a Mitigation Banking Instrument (per 15A NCAC 02B .0703 and
D E Q�� North Carolina Department of Environmental Quality{ Division of Water Resources
512 North Salisbury Street 1 1611 Mail Service Center I Raleigh, North Carolina 27699-1611
NORTH CAROLINA �/ 919.707.9000
Dep em of E Vlmnmemel Quel�

DocuSign Envelope ID: 147D8CAF-2F8A-4596-B7A6-B7E90C23F257 Compliance Action Plan
Eco Terra, LLC
April 22, 2024
15A NCAC 02B .0295) or approved Plan. Copies of that correspondence for both projects are
attached as Exhibit A.
DWR staff has developed this Compliance Action Plan to provide a course of action for Eco Terra to
resolve the non-compliance noted in the correspondence dated May 4, 2023. The CAP is provided
in two parts, Part I and Part II, as described below and is to begin on the date signed by the last party
on page 3.
Part I: Site Inspection Plan - Adjusted timelines for inspecting future bank site projects submitted
to DWR by Eco Terra for purposes of generating nutrient offset and buffer mitigation credits. The
Site Inspection Plan will expire within one (1) calendar year of the last party's signature.
Justification: Item A of Section V of the Joshua Creek MBI and Britt and Hales MBI reads as
follows, "The Bank Parcel Development Package submitted under this Instrument shall be submitted
to DWR for review and must be approved by DWR prior to any construction on the Bank Parcel".
Item C of Section V reads, `Any restoration activities or proposed construction within streams,
riparian buffers and other riparian areas on the Bank Parcel to produce Riparian Buffer Credit
and/or Nutrient Offset Credit must be approved by DWR in writing prior to implementation.
A. Extend timeframes for Site Viability Requests by 2-3 months. Completed in 2023
a. DWR staff postponed site visits for five (5) pre -scheduled site viability request
evaluations by 2-3 months in the Summer of 2023. Thus, delaying Eco Terra
from receiving a Site Viability Letter for potential banks by at least 5-8 months
from receipt of request.
B. Require two separate, self -evaluating site inspections for proposed bank sites prior to
issuing approvals.
a. Within 5 calendar days from when DWR posts a Final Draft Plan on public notice
for public commenting, Eco Terra is to submit sufficient, time -stamped photos
documenting current land -use conditions within the riparian areas adjacent to all
water conveyance features proposed in the Plan. Photos must be labeled, include
the timestamp and a description of where the photo was taken. A supporting
map/figure that shows where the Photo Point was taken must also be included.
Photos must adequately represent the width of the riparian areas being proposed
in the Final Draft Plan (0-200' where applicable).
b. Prior to issuing a Plan Approval letter, which usually occurs within 7 business
days after the public comment period has ended, Eco Terra will be required to
submit more timestamped photos at the same locations as where the photos were
taken for "Item a" above and submitted in the same format. Photos should be
documenting the existing land -use conditions and easily compared to the photos
that were taken for Item a. If DWR can confirm that no site work, planting, or
other activities related to site preparation and riparian restoration have begun,
DWR will issue a Plan Approval letter.
C. The public commenting period for Final Draft Plans and Mitigation Banking Instruments
is 15 calendar days for providers. However, Eco Terra will be held to an extended public
comment period of 20 calendar days.
Page 2 of 6

DocuSign Envelope ID: 147D8CAF-2F8A-4596-B7A6-B7E90C23F257 Compliance Action Plan
Eco Terra, LLC
April 22, 2024
Part II: Modified Credit Release Schedule - Table 3.0 within the Britt & Hales MBI and the
Joshua Creek MBI will be modified from what was originally agreed upon between DWR and Eco
Terra
Justification: Item A of Section VIII of the Joshua Creek MBI and Britt and Hales MBI reads as
follows, `DWR may modem Credit Release Schedules based on the information submitted or the order
in which required information is received. DWR will notes the Sponsor of any modification to the
credit release schedule ".
A. Extend the 9 required Tasks to 10 required Tasks.
a. No credits are released for the approval of a Year 1 Monitoring Report
b. The sites will be monitored for 6 years instead of 5, depending on compliance
status.
B. The percentage of credits being released are adjusted based on the following new credit
release schedule:
Page 3 of 6

DocuSign Envelope ID: 147D8CAF-2F8A-4596-B7A6-B7E90C23F257 Compliance Action Plan
Eco Terra, LLC
April 22, 2024
Modified Table 3.0 Credit Release Schedule for the Britt & Hales Mitigation Banking Instrument & the Joshua Creek Mitigation
Banking Instrument with Eco Terra, LLC
Credit Release Schedule for Riparian Buffer and Nutrient Offset Credits for Britt & Hales Bank Parcel & Joshua Creek Bank Parcel
% Credit
DWR Comments & Justification for
Available
changes to credit release
Task
Project Milestone
for Sale
Instrument and BPDP Approved by DWR, Conservation Easement
1
Recorded*, and Financial Assurance Posted
20
Task 2 & Task 3, which are both
All mitigation activities, including Riparian Earthwork, Planting and Installation
affiliated with planting the site
of Monitoring Devices Completed, Easement Boundaries adequately marked,
according to the approved BPDP &
and all applicable permits obtained. A site visit by DWR is required for this
MBI that were placed on public notice,
2
task.
10
are proposed at Half the credits from
what is typically released for these two
Monitoring Financial Assurance Posted and Approval of As -Built
tasks.
3
Report
5
Monitoring for credit release delayed by
Monitoring Report #1: Approved by the DWR** & financial assurance
1 year to allow DWR to oversee Eco
renewed; a site visit by DWR has been conducted
Terra's compliance status with other
Fall 2023
projects (resulting in 1 trial year)
4
0
Rewarding w/ 5% more than the
average 10% to encourage Eco Terra to
Monitoring Report #2: Approved by the DWR** & financial assurance renewed
make good faith effort on CAP through
5
Fall 2024
15
first monitoring report submittal
Rewarding w/ 10% more than the
average 10% to encourage Eco Terra to
Monitoring Report #3: Approved by the DWR** & financial assurance renewed
make good faith effort on CAP through
6
Fall 2025
20
first monitoring report submittal
Item B (1) of Section X in this Instrument has been completed and
_[
7
approved by DWR
5
No remaining credits will be released until Task 7 has been satisfied, assigning the conversation easement to an approved land trust or
long-term steward
Normal release is 10% for credit
Monitoring Report #4: Approved by the DWR** & financial assurance renewed
releases not affiliated with a CAP.
Fall 2026
EcoTerra will receive the average
8
10
release for monitoring report approval
Monitoring Report #5: Approved by the DWR** & financial assurance renewed
Adding an option for early closeout to
Fall 2027- DWR may consider an early closeout for Task 10 at Task 9 if all
be assessed by DWR if earned and if
following conditions are met: consistent successful vegetation conditions site
site meets expectations.
wide (vigor, height, density, diversity), no history of unresolved easement
encroachments, no substantial stem mortality or substantial supplemental
planting needed during years 1-5, Sponsor is not affiliated with a compliance
action plan by DWR for other bank sites (excluding Britt & Hales and Joshua
Creek) and Sponsor has managed and maintained the easement boundary and
vegetation in a responsible manner according to the expectations in the
approved BPDP during years 0-5. A site visit by DWR is required to be
9
performed for a 15% release
5 or 15
Monitoring Report #6: Approved by the DWR** and final site visit by DWR
10
has been performed. No Task 10 if DWR issued 15% for Task 9
10 or -0-
Total
100%
*For specification, please see Section V in this Instrument
* *DWR Approval provided upon a determination that the site is meeting performance standards contained within the approved BPDP
Note: This credit release schedule is defined as Part II of the Compliance Action Plan (CAP)
Page 4 of 6

DocuSign Envelope ID: 147D8CAF-2F8A-4596-B7A6-B7E90C23F257
Compliance Action Plan
Eco Terra, LLC
April 22, 2024
ECO TERRA, LLC
By: Michael Beinenson (Print)
e:6�� r_— (Signature)
Title: President
Date: 04/25/2024
NORTH CAROLINA DEPARTMENT OF ENVIRONMENTAL QUALITY - DIVISION OF WATER
RESOURCES
By: Stephanie Goss
(Print)
(Signature)
Title: 401 & Buffer Permitting Branch Supervisor
Date: 4/23/24
Page 5 of 6