HomeMy WebLinkAbout20230245 Ver 2_Mitigation Bank Instrument_20240612DocuSign Envelope ID: 94F50236-6FFF-4EBD-9025-F64lB07D1824
ROY COOPER
Governor
ELIZABETH S. BISER
Secretary
RICHARD E. ROGERS, JR.
Director
NORTH CAROLINA
Environmental Quality
June 11, 2024
TO: Michael Pjetraj
Deputy Director - Division of Water Resources
FROM: Katie Merritt
Nutrient Offset & Buffer Banking Coordinator
THROUGH: Stephanie Goss
Supervisor — 401 & Buffer Permitting Branch
SUBJECT: Division Approval of the Georgianna Nutrient Offset Banking Instrument in the
Neuse River Basin for Nutrient Offset Credits pursuant to the Neuse River Nutrient Management
Strategy for Wildlands Holdings X, LLC
The attached final Mitigation Banking Instrument (MBI) between Wildlands Holdings X, LLC
and the Division of Water Resources was placed on public notice and made available for public
comments on May 24, 2024. The public comment period ended on June 7, 2024, and no
comments were received on the draft MBI.
DEQ Legal counsel assisted with and agrees with the final template for which all our MBI
documents are drafted. DWR staff (Katie Merritt) has reviewed the attached final MBI and it is
ready for your review. If you approve of the MBI, please sign on page 16 and return the
document to Katie Merritt for final execution.
DocuSign Envelope ID: 94F50236-6FFF-4EBD-9025-F641 B07D1 824
AGREEMENT TO ESTABLISH THE GEORGIANNA NUTRIENT OFFSET BANKING INSTRUMENT IN THE
NEUSE RIVER BASIN FOR NUTRIENT OFFSET CREDITS PURSUANT TO THE NEUSE RIVER BASIN
NUTRIENT MANAGEMENT STRATEGY
TABLE OF CONTENTS
I. PREAMBLE.......................................................................................................................... 2
II. LOCATION AND GEOGRAPHIC SERVICE AREA ......................................................... 2
I11. AUTHORITIES..................................................................................................................... 3
IV. ESTABLISHMENT OF BANK PARCEL............................................................................ 3
V. PRE -CONSTRUCTION DOCUMENTATION.................................................................... 5
VI. POST CONSTRUCTION DOCUMENTATION.................................................................. 7
VII. CALCULATION OF CREDITS........................................................................................... 9
VIII. CREDIT RELEASE SCHEDULE.......................................................................................
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IX. PROCEDURE FOR DEBITING AND CREDITING.........................................................
13
X. BANK PARCEL CLOSURE...............................................................................................
14
XI. GENERAL PROVISIONS..................................................................................................
14
ATTACHMENTS
A - Division of Water Resources Authority Document
B —Ledger Templates
C- Project Credit Table (example)
1. Nutrient Offset Credit Trading Rule:
http://reports.oah.state.nc.us/ncac/title%2015a%20-%20environmental%20guality/chapter/o2002/020-
%20environmental%20management/subchapter/o20b/15a/o20ncac/o2002b/o20.0703.pdf
2. Riparian Buffer Mitigation Rule:
http://reports.oah.state.nc.us/ncac/title%2015a%20-%20environmental%20guality/chapter/o2002%20-
%20environmental%20management/subchapter/o20b/15a%20ncac/o2002b%20.0295.pdf
3. NC Session Law 2019- 86 " Nutrient Offset Credits":
https://ncIeg.gov/EnactedLegisIation/SessionLaws/HTM L/2019-2020/SL2019-86.htm 1
4. Buffer Interpretation/ Clarification # 2008- 019 for diffuse flow:
https://files.nc.gov/ncdeq/Water%20Quality/Surface%20Water%20Protection/401/Buffer%20CIarification/`2
OMemos/Diffuse-Flow-for-Buffer-Mitigation-Sites-Buffer-Clarification-Memo-20080819.pdf
5. Clarified Procedures for Calculating Buffer Mitigation Credits and Nutrient Offset Credits (November
2019):
https://files.nc.gov/ncdeq/Water%20Quality/Surface/`20Water%20Protection/401/Mitigation/Issues---
Resolutions-Ver-1.0-buffer-mitigation-nutrient-offset.pdf
6. NCDWR — Methodology and Calculations for Nutrient Reductions on the Bank Parcel:
https://files.nc.gov/ncdeq/Water%20Quality/Planning/NPU/Nutrient%20Offset%20Rule/Ag-Buffer-Credit.pdf
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DocuSign Envelope ID: 94F50236-6FFF-4EBD-9025-F641 B07D1 824
I. PREAMBLE
This Nutrient Offset Banking Instrument ("Instrument") regarding the establishment, use, operation,
and maintenance of the Georgianna Bank ("Bank Parcel"), further identified in Section II, to provide
Neuse Nutrient Strategy nutrient load reduction credit ("Nutrient Offset Credits") is made and entered
into by and among Wildlands Holdings X, LLC 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 .0703 and 15A NCAC 02B .0295, which became
effective on April 1, 2020 and November 1, 2015 respectively (Reference Numbers 1 and 2).
The purpose of the Bank is:
A. To restore and preserve riparian vegetation adjacent to streams and agricultural ditches with the
intent to improve water quality, reduce nutrient loads, enhance flood attenuation and restore
wildlife habitat along unnamed tributaries and ditches within the Neuse River Basin.
B. To convert agricultural land uses within riparian areas adjacent to streams and/or agricultural
ditches into a dense and diverse, hardwood vegetated state with the intent to significantly
reduce nutrient loadings associated with agricultural practices into streams and ditches.
C. To provide nutrient offsets and sell any resulting Nutrient Offset Credits to third parties in specific
areas within the Neuse River Basin for development (both existing and proposed) or to offset
NPDES-permitted wastewater nutrient sources requiring such mitigation or offset.
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 Nutrient Offset Credits for impacts due to development activities requiring such
offset.
B. The GSA for this Bank Parcel is limited to the United States Geological Survey ("USGS") 8-digit
Hydrologic Unit Code ("HUC") 03020201 of the Neuse River Basin, excluding the Falls Lake
Watershed.
C. Sale or transfer of Nutrient Offset Credits shall be limited to the 8-digit HUC 03020201 in the
Neuse River Basin, excluding the Falls Lake Watershed, in accordance with 15A NCAC 02B .0703,
unless otherwise authorized by the DWR in accordance with Session Law (S.L.) 2019-86
D. The Georgianna Bank Parcel is comprised of land currently used for crop production. Table 1.0
provides site -specific details of the Bank Parcel Proposed under this Instrument.
Table 1.0 — Bank Parcel Details
Bank Parcel
8-Digit USGS
Named
Primary Land
Name/DWR
County
Hydrologic Unit
Project Location
Receiving
Use/s
Project #
Code
Stream
Georgianna/
Wayne
03020201
78.157332° W,
Horse
Agriculture
2023-0245v2
35.300949' N
Branch
2
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III. AUTHORITIES
A. The Bank Parcel will be used to provide Nutrient Offset 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 ("State") statutes and rules
for the Neuse Nutrient Sensitive Waters Management Strategy.
C. The selling of credits generated from the Bank Parcel approved under this Instrument shall be
consistent with approved State statutes and rules for the Neuse Nutrient Sensitive Waters
Management Strategy.
D. Nutrient reduction activities proposed under this Instrument and corresponding Nutrient Offset
Plan ("Plan") to generate Nutrient Offset Credits shall be consistent with State statutes and rules
for the Neuse Nutrient Sensitive Waters Management Strategy that are in place at the time a
complete Plan is submitted to DWR.
IV. ESTABLISHMENT OF BANK PARCEL
A. In accordance with 15A NCAC 02B .0295 and 15A NCAC 02B .0703, 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 and Nutrient Offset 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, ditches, ponds, etc.) that meet general criteria to be suitable to generate Riparian Buffer
Credits and Nutrient Offset Credits. Table 2.0 below outlines when a Site Viability Letter was
issued by DWR for the Bank Parcel proposed under this Instrument:
Table 2.0 — Site Viability Letter Details
Bank Parcel
NC DWR Site
Viability Letter
Viability Letter
Evaluation
Received
Expiration Date
September 11,
September 11,
Georgianna
May 31, 2023
2023
2025
B. A valid Site Viability Letter is required prior to submittal of each Plan. Site Viability Letters will
either expire on the dates listed in the table above or upon submittal of an individual As -Built
Report to the DWR, whichever comes first. If a Site Viability Letter expires prior to submittal of a
complete Plan 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 Plan be submitted
to, and approved, by the DWR prior to use of the individual Bank Parcel for nutrient offset
purposes or the sale or transfer of any associated credits. The contents of the Plan are provided
in Section V.
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D. The Plan submitted under this instrument will be placed on public notice and made available for
public commenting for 15 calendar days.
E. Nutrient Offset Credit on this Bank Parcel may be achieved through restoration of the riparian
areas adjacent to viable streams and viable ditches where agriculture was determined by DWR to
be the predominant land use. Nutrient Offset Credits are only attainable if the width of the
restored riparian areas are at least fifty (50) feet as measured perpendicular from tops of banks
along viable streams and viable ditches. The width of the restoration area shall begin at the most
landward limit of top of bank or the rooted herbaceous vegetation and extend landward a
minimum of 50 feet and a maximum of 200 feet on all sides of the surface waters. A conservation
easement will be secured to include the tops of all stream channel and ditch banks and will extend
out a maximum of 200 feet where feasible. The viability of features to generate nutrient offset
credit is provided in the Site Viability Letters for the Bank Parcel and referenced in Table 2.0
of this Instrument.
F. The Bank Parcel is expected to provide Nutrient Offset Credits in accordance with 15A NCAC 02B
.0703 as follows:
1. Converting agricultural land uses within riparian areas to non-agricultural land uses by
placing a perpetual conservation easement around riparian areas along viable
streams, ephemeral channels, and viable ditches in accordance with 15A NCAC 02B
.0703 (g).
2. Planting hardwood trees on a Restoration Site as defined in 15A NCAC 02B .0295 (b)
adjacent to viable streams, ephemeral channels, and viable ditches where agriculture has
been determined by DWR to be the predominant land use.
3. Diffused flow will be maintained onsite to the maximum extent practicable. The Buffer
Interpretation/Clarification Memo #2008-019 may be applied where maintenance of
diffuse flow onsite is unattainable.
The total area of riparian restoration activities on the Georgianna Bank Parcel is expected to be
approximately 49.7 acres.
DocuSign Envelope ID: 94F50236-6FFF-4EBD-9025-F641 B07D1 824
V. PRE -CONSTRUCTION DOCUMENTATION
Nutrient Offset Plan
A. The Plan 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. The Plan will describe any changes
that have occurred to the site between the date of the Site Viability Letter and the date the Plan
is submitted to DWR. The Plan shall include detailed information consistent with the sections
below concerning; 1) site location (8-digit HUC is required); 2) existing conditions with current
photos; 3) proposed buffer mitigation and nutrient offset activities including a detailed vegetation
plan; 4) monitoring and maintenance plans; 5) financial assurances; 6) A Project Credit Table (see
Attachment C) showing associated buffer /nutrient offset credit calculations, which shall include
credit generation, service area, and accounting as appropriate for each regulatory authority; 7)
stream buffer determination letter from DWR; 8) Site Viability Letter from DWR; 9) service area
figure for each mitigation type 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.
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 activities or proposed construction within the stream channels, riparian buffers
and other riparian areas on the Bank Parcel to produce Nutrient Offset Credit must be approved
by DWR in writing prior to implementation. The failure of the Sponsor to comply with this
requirement will result in a revised or reduced credit release schedule for the Bank Parcel or a
denial of the Bank Parcel to generate nutrient offset credits.
D. Requests for deviation from the approved Plan must be submitted to DWR in writing. Written
approval from the DWR must be received prior to implementing any deviation from the approved
Plan.
Property Disposition & Long -Term Management
E. Prior to the release of any credits, the Sponsor shall record permanent conservation easements
at the Wayne County Register of Deed's office that is sufficient to ensure protection, operation,
and maintenance of restored riparian buffers and other riparian areas for the duration specified
in the approved Plan.
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.
E
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H. The Sponsor agrees to 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 Plan.
Financial Assurances for Bank Parcel Develooment
J. Following approval of the Plan, the Sponsor shall provide Performance/Maintenance Bonds from
a surety company that is rated no less than an "A-" as rated by A.M. Best, to construct the sites
according to the approved Plan. 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 shall be 100% of the estimated cost for implementation of
the riparian restoration and other related activities for the construction of the Bank Parcel as
described in the approved Plan. No bond shall be less than $150,000.00 to cover construction
costs.
L. Alternatively, in lieu of posting a Performance Bond, the Sponsor may elect to construct the Bank
Parcel prior to the first credit release.
M. Once DWR has released all credits for completion of all items listed below, then the Sponsor will
be released from its performance obligations under the performance bond required in Item J and
K of this section:
1. Instrument and Plan Approved by DWR, Conservation Easement Recorded, Financial
Assurance Posted;
2. All riparian earthwork & mitigation activities, planting and installation of monitoring devices
completed, easement boundaries adequately marked, all applicable permits obtained, site
visit performed by DWR is required for this task;
3. Monitoring financial assurance posted and approval of As -Built report;
N. To comply with this section, DWR must be the Obligee on all performance bonds.
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VI. POST CONSTRUCTION DOCUMENTATION
As -Built Report
A. The Sponsor agrees to perform all necessary work, in accordance with the provisions of this
Instrument and corresponding Plan, to establish, maintain, and monitor Neuse Riparian Buffers
or other riparian areas until Items B (1) and (2) of Section X have been satisfied.
B. Within 30 calendar days after completing the establishment of the nutrient offset areas, the
Sponsor will submit written notification to DWR documenting that all nutrient offset activities
have been completed. This notification shall include a formal request by the Sponsor for DWR to
perform a site inspection of the completed activities. This site inspection is required for DWR to
determine completion of Task 2 on the Credit Release Schedule in Section VIII of this NOBI. 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 Plan;
2. Figures representing all riparian restoration, riparian enhancement and riparian
preservation activities where applicable;
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 Plan;
5. Description of how the conservation easement boundaries were marked; and
6. Any major changes to the conservation easement boundary or to the amount of Nutrient
Offset Credits from what was proposed in the approved Plan.
C. The Sponsor will submit an as -built plan and report to the DWR for the Bank Parcel after
completing the establishment of the nutrient offset areas. The As -Built report will describe any
deviation from the approved Plan and will document all findings found during the site inspection
by DWR noted in Item B of this section, and will document all the following:
1. Riparian restoration and enhancement planting and seeding details and other
construction activities that were required in the Plan, confirmation that all easement
boundary markers are adequately installed, invasive species control, monitoring device
locations, vegetation plot locations, and photo point locations.
2. Boundary Survey of the conservation easement area, signed and sealed by a licensed
surveyor, including an inventory of the final mitigation areas for Nutrient Offset Credits
in both square feet and acres.
3. As -built map of the nutrient offset areas showing where riparian activities were
performed and any deviations to the Bank Parcel from what was approved in the Plan.
4. Aerial map of the nutrient offset areas that was included in the approved Plan.
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DocuSign Envelope ID: 94F50236-6FFF-4EBD-9025-F641 B07D1 824
Financial Assurance for Monitoring and Maintenance
D. After completion of the riparian restoration and mitigation activities on the Bank Parcel, 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 Plan and As -Built
Report. 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 the surety company is still rated no less
than an "A-" with each annual bond renewals.
E. A Performance/Maintenance Bond shall be secured each year for a minimum of five years, and
until DWR has released all Nutrient Offset 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, the Sponsor will be released from its performance obligations under the
performance bond required in D and E in this section.
G. To comply with this section, DWR must be the Obligee on all performance bonds.
Monitoring and Maintenance Reports
H. The Sponsor shall monitor the Bank Parcel as described in the Plan 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.
Performance Standards for Vegetation: Native hardwood trees or native hardwood tree 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 Plan for approval. 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 the Bank Parcel, to 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, 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 diffused flow, managing
invasive species, and pest control will be included in the monitoring reports.
L. Monitoring Reports for Nutrient Offset 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 Plan. The Sponsor shall submit to the DWR an annual monitoring report no later
than December 31 of each year for a minimum of five consecutive years after the first full growing
DocuSign Envelope ID: 94F50236-6FFF-4EBD-9025-F641 B07D1 824
season for the Bank Parcel under this instrument. Vegetation data shall not be collected prior to
late August of each year. This report will describe the conditions of the Bank Parcel, including an
evaluation of the performance standards of the vegetation contained within the approved Plan.
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 figures showing locations of sampling plots, permanent photo
points, and location of transects, Etc.; and
4. Monitoring data, including specific vegetation counts, vigor and heights 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 lodgers; and
6. Corresponding verification letters from designated local governments upon request; and
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 performance criteria described in this Instrument
and in the approved Plan, the 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
Nutrient Offset Credits
A. The square footage of Nutrient Offset Credits on the Bank Parcel will be determined by applying
the applicable ratio as provided in 15A NCAC 02B .0295(m) for a Restoration Site following the
guidance provided in the Clarified Procedures for Calculating Buffer Mitigation Credits and
Nutrient Offset Credits issued by the DWR (see reference #5 and Attachment C respectively),
including the most recent Project Credit Table Template provided online. All riparian areas
proposed for Nutrient Offset Credits must be a minimum of 50 feet from the top of the banks
along viable streams and viable ditches on land noted in a Site Viability Letter as agriculture.
B. Nutrient Abatement of Restored Riparian Area/Buffers on agricultural land: The Sponsor and DWR
agree to the following:
1. The pounds of nitrogen offset per acre of restored riparian areas/buffers on agricultural
land shall be 2,273.02 pounds per acre or 19.16394 square feet per pound.
C. The Sponsor and DWR agree that the methodology and calculations for determining nitrogen
reductions, associated with restoration of riparian areas on this Bank Parcel as described in
Section IV of this Instrument, shall be fixed as part of the approval of this Instrument, with the
fixed amount not changing during the development of the Bank Parcel or the credit release
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schedule for the Bank Parcel unless the viability letter for that Bank Parcel has expired and there
is not an approved Plan. For further details on the approved method and calculations for
determining nutrient reductions associated with the riparian restoration on this Bank Parcel refer
to the NCDWR - Methodology & Calculations for Nutrient Reductions document found in
reference number 6.
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Vill. CREDIT RELEASE SCHEDULE
A. Upon submittal of all appropriate documentation by the Sponsor, and subsequent approval by
DWR, it is agreed that the Nutrient Offset Credits associated with the Georgianna Bank Parcel will
become available for sale to a third party in accordance with the Credit Release Schedule in Table
3.0 below:
Table 3.0 - Credit Release Schedule for Nutrient Offset Credits
Credit
Available for
Task
Project Milestone
Sale
Instrument and Plan Approved by DWR, Conservation Easement
1
Recorded*, and Financial Assurance Posted
20
All Riparian Earthwork & Mitigation Activities, Planting and
Installation of Monitoring Devices completed, easement boundaries
2
adequately marked, all applicable permits obtained, a site visit
20
performed by DWR is required for this task
Monitoring Financial Assurance Posted and Approval of As -Built
3
10
Report
Monitoring Report #1: Approved by the DWR** & financial
4
assurance renewed
10
Monitoring Report #2: Approved by the DWR** & financial
5
assurance renewed
10
Monitoring Report #3: Approved by the DWR** & financial
6
assurance renewed
10
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.
Monitoring Report #4: Approved by the DWR** & financial
8
assurance renewed
5
Monitoring Report #5: Approved by the DWR** and final site visit
9
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 performance
standards contained within the approved Plan
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 nutrient offset credits that will be generated by the
Bank Parcel.
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IX. PROCEDURE FOR DEBITING AND CREDITING
Credit Ledgers
A. The Sponsor shall maintain one credit ledger for each mitigation type for the Bank Parcel under
this Instrument unless otherwise instructed by DWR in the approved Plan: Credit ledgers shall
provide the accounting for Nutrient Offset Credits in pounds and square feet.
B. Each credit ledger shall be submitted on a separate 8 %2 in. x 11in. 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. Nutrient Offset Credits generated on this Bank Parcel will be used to offset nitrogen nutrient loads
within the 03020201 HUC of the Neuse River Basin, excluding the Falls Lake Watershed, in
accordance with 15A NCAC 02B .0703.
D. Credits must be calculated for the Bank Parcel using the most recent Project Credit Table
template, see Attachment C, which is referenced in the guidance provided in the Clarified
Procedures for Calculating Buffer Mitigation Credits and Nutrient Offset Credits letter issued by
the DWR, see reference #5.
E. The Sponsor shall obtain written verification of nutrient offset need from a designated local
government in the 03020201 HUC of the Neuse River Basin outside of the Falls Lake Watershed,
or from DWR through an approved NPDES permit for wastewater nutrient sources prior to
debiting Nutrient Offset Credits from the Bank Parcel.
F. 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 10th of each month. At a minimum and only upon request, DWR shall
receive a hard copy of updated credit ledgers along with corresponding Mitigation Credit Transfer
Certificates 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
G. All credit sales will include a Mitigation Credit Transfer Certificate ("Certificate") that is required
to be provided to the buyer of Nutrient Offset Credits, that will include, at a minimum, the
following information;
1. Bank Details: (1) Sponsor Name, (2) Bank Parcel name as it appears in Table 1.0, (3) DWR
project number for the Plan as it appears in Table 1.0.
2. Credit Details: (1) date of receipt, (2) identify if full or partial payment, and (3- when
applicable) amount of nitrogen Nutrient Offset Credits purchased in pounds and
confirmation from the designated local government or DWR of the amount required.
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DocuSign Envelope ID: 94F50236-6FFF-4EBD-9025-F641 B07D1 824
3. Permitted Project Details: (1) project name and project number as it appears on DWR or
local government permits and/or certifications, (2) 8-digit HUC, (3) river basin, (4) nutrient
strategy applicable to the project with impacts, (5 — when applicable) designated local
government requiring Nutrient Offset Credits, and (6) credit type and amount required
for project.
H. If the DWR determines the Bank is operating at a deficit (e.g. the Sponsor is selling and/or
transferring credit that is not available), or the Bank is selling or transferring 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 its responsibilities to the Bank Parcel and there are no Nutrient
Offset Credits left to sell.
B. Bank Parcel Closure shall commence only after all following events have occurred;
1. Transfer or assign the conservation easement and all its interests, in perpetuity, to a land
trust or stewardship program as described in 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 zero credit
balances have been submitted and approved by DWR.
XI. GENERAL PROVISIONS
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, 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.
D. Force Majeure: After 100% of all the credits have been released in accordance with 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 failure that is attributed to natural catastrophes
14
DocuSign Envelope ID: 94F50236-6FFF-4EBD-9025-F641 B07D1 824
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 100% of all the credits have been released in accordance with
the credit release schedule in Section VIII, 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. Issuance of Site Viability Letters,
3. Plan review and approval of items listed in 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 listen in Section VI of this Instrument,
6. Credit Ledger review and approval of items listen 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 this Instrument: This Instrument will become valid on the date of the last party's
signature.
H. Specific Language of this 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.
K. Notices: All Notices and other communication 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, received via email with a delivery receipt requested, 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.
15
DocuSign Envelope ID: 94F50236-6FFF-4EBD-9025-F641 B07D1 824
If to Sponsor: 1430 South Mint Street, Suite 104
Charlotte, NC 28203
Attn: John Hutton
jhutton@wildlandseng.com
If to DWR: NC Division of Water Resources — 401 & Buffer Permitting Branch
Attn: Nutrient Offset and Buffer 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.
Wildlands Holdings X, LLC
By: John Hutton (Print)
(Signature)
�a
Vice President of Wildlands Engineering,
Title: Member of Wildlands Holdings X, LLC
Date: 5/24/2024
NORTH CAROLINA DEPARTMENT OF ENVIRONMENTAL QUALITY -DIVISION OF WATER RESOURCES
B Michael Pjetraj Print
ocu 1gne y:
(Signature)
32BDA3BFE0074C5...
Title: Deputy Director
Date: 6/12/2024
16
DocuSign Envelope ID: 94F50236-6FFF-4EBD-9025-F641B07D1824
Nutrient Offset Program & Buffer Mitigation Program Updated
Authorities for Neuse Strategy MBI August 11, 2020
ATTACHMENT A
Authorities pertaining to the Georgianna Mitigation Banking Instrument
All Basins
General Statutes:
G.S. § 143-214.11 Ecosystem Enhancement Program
G.S. § 143-214.26 Nutrient Offset Credits
G.S. § 143-214.20-24 Riparian Buffer Protection Program
G.S. § 143-214.7 Stormwater runoff rules and programs
G.S. § 143-215.8B Basinwide Water Quality Management Plans
Session Laws
S.L. 2019-86 (Amendment to G.S. §143-214.26)
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:
15A NCAC 02B .0202 Definitions
15A NCAC 02B .0223 Nutrient Sensitive Waters
15A NCAC 02B .0701 Nutrient Strategies Definitions
15A NCAC 02B .0703 Nutrient Offset Credit Trading
15A NCAC 02B .0295 Mitigation Program Requirements for Protection and Maintenance of Riparian Buffers
Neuse River Basin Buffer and Neuse Nutrient Strate2
Session Laws
S.L. 2011-394
S.L. 1998-221 (Part I)
S.L.1995-572
Administrative Rules:
15A NCAC 02B .0610 Managing Activities within Riparian Buffers: Definitions
15A NCAC 02B .0611 Managing Activities within Riparian Buffers: Authorization Certificates
15A NCAC 02B .0612 Managing Activities within Riparian Buffers: Forest Harvesting Requirements
15A NCAC 02B .0710 Neuse Nutrient Strategy: Purpose and Scope
15A NCAC 02B .0711 Neuse Nutrient Strategy: Stormwater
15A NCAC 02B .0712 Neuse Nutrient Strategy: Agriculture
15A NCAC 02B .0713 Neuse Nutrient Strategy: Wastewater Discharge Requirements
15A NCAC 02B .0714 Protection and Maintenance of Existing Riparian Buffers
15A NCAC 02B .0715 Delegation of Authority for the Protection and Maintenance of Existing Riparian Buffers
DocuSign Envelope ID: 94F50236-6FFF-4EBD-9025-F641 B07D1 824 hment B
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