20080229 Ver 2_Final Release & Monitoring Closeout_20160205

Water Resources
ENVIRONMENTAL QUALITY
February 5, 2016
PAT MCCRORY
Governor
DONALD R. VAN DER VAART
Secretary
S. JAY ZIMMERMAN
Director
DWR Project #: 2008-0229
Orange County
Daniel Ingram
Environmental Banc & Exchange, LLC
302 Jefferson Street, Suite 110
Raleigh, NC 27605
Re: Forrest Creek Buffer Mitigation Bank (MBI)
Forrest Creek Riparian Buffer Bank Credit Release — Task 8 & Monitoring Closeout
Dear Mr. Ingram:
On December 17, 2015, the Division of Water Resources (DWR) received the Year Eight Monitoring
Report, dated November 2015, for the Forrest Creek Buffer Mitigation Bank Parcel in Orange
County, North Carolina from Environmental Banc & Exchange, LLC (EBX). The Forrest Creek
Buffer Mitigation Bank parcel is a private buffer mitigation bank that provides riparian buffer
mitigation credits to compensate for Neuse Riparian Buffer impacts in the 8 -digit Hydrologic Unit
Code 03020201of the Neuse River Basin. In addition, the subject bank parcel is part of the Forrest
Creek Stream Mitigation Bank (DWR# 2008-0229 & USACE Action ID 200521199). This release
does not imply compliance with or approval of the Forrest Creek Stream Mitigation Bank.
According to the DWR report, the average stem density was above 320 planted stems/acre. In
addition, damage to the wire fencing and the presence of cattle were noted to have been observed in
the buffer.
On January 15, 2016, Katie Merritt with DWR met with Brian Hockett of EBX on the subject site.
The site visit was performed to provide an overall assessment of the vegetation success criteria, to
inspect the fence installed around the perimeter of the conservation easement and to assess any
damage from the encroachment of cattle in October 2015. All plots exceeded the success criteria of
320 stems/acre when volunteers were considered. All vegetation looked healthy and stable. Fencing
was in excellent condition and no encroachment was observed. Areas where cattle had been in the
buffer were stable and no damage to the vegetation was noted. However, there were three beaver
dams seen during the site visit and significant ponding had occurred. On January 29, 2016, DWR
received correspondence from Mr. Hockett that beaver dams had been removed and water had
receded back into the stream.
On May 15, 2014, the conservation easement for the subject bank parcel was placed under the long
term steward, Land Trust of America. By copy of this letter, the monitoring requirements at the
subject site have been met and DWR is releasing EBX from its financial assurance obligations with
regards to the performance bond (#1000899309) with the United States Surety Company.
State of North Carolina I Environmental Quality I Water Resources
1617 Mail service Center I Raleigh, North Carolina 27699-1617
919 807 6300

Forrest Creek Riparian Buffer Mitigation Bank
February 5, 2016
Page 2 of 2
On February 4, 2016, DWR received the riparian buffer credit ledger for the subject site dated
December 31, 2015. All credit sales as of December 31, 2015 have been reviewed and are
compliant.
According to the MBI signed on April 2, 2008, the following Project Milestones have been met, and
the corresponding credits shall be released:
Task/Milestones
Credit
9) Submittal & Approval of Monitoring Report Year 5 10%
(and additional reports for Year 6, Year 7 and Year 8 as
required by DWR per the letter dated May 3, 2013)
By copy of this correspondence, DWR confirms that you have satisfied the above requirements for
the above -referenced tract and 10% of your nitrogen nutrient offset credits (0.10 x 658,000 lbs -N =
65,800 ft) are now available for sale. A total of 100% of the Neuse riparian buffer credits have been
released for this bank.
The riparian buffer credits must be used for impacts in the Neuse River Basin according to
guidelines in the Consolidated Buffer Mitigation Rule, 15A NCAC 02B.0295, which became
effective on November 1, 2015.
All credit sales' transactions must be provided to the DWR for review and approval until all credits
that have been released, have been sold. At the time all credits have been sold, DWR will issue a
"Bank Closure" letter.
As always, please copy DWR on all correspondences related to credit sales.
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
cc: File Copy (Katie Merritt)
Brian Hockett - Environmental Banc & Exchange, LLC (via electronic mail)
Andrea Hughes — USACE (Via electronic mail)