20150636 Ver 1_Credit Release (Ph I) Task 1_20160630

Water Resources
ENVIRONMENTAL QUALITY
June 30, 2016
Mike Hermann
Watershed Investments NC, LLC
1630 Weatherford Circle
Raleigh, NC 27604
Re: Neville Farms Mitigation Bank Instrument (MBI)
Neville Farms Phase I Bank Parcel Credit Release — Task 1
Dear Mr. Hermann:
PAT MCCRORY
Govemor
DONALD R. VAN DER VAART
Secretary
S. JAY ZIMMERMAN
Director
DWQ Project #: 2015-0636
Orange County
On June 9, 2016, the Division of Water Resources (DWR) approved a Bank Parcel Development
Package (BPDP) for the Neville Farms Buffer and Nutrient Offset Bank submitted by Watershed
Investments NC, LLC (WINC) on May 10, 2016. On March 3, 2016, the DWR received a signed
and recorded conservation easement for the subject site. Additionally, on June 27, 2016, DWR
received a performance bond (#CEO 1492400035) for WINC with Philadelphia Indemnity Insurance
Company, to cover performance obligations for the construction of the subject site. The term of the
bond is until June 23, 2017 and will terminate upon DWR approval of the As -Built Report/s for both
Phase I and Phase II.
According to the MBI signed on January 7, 2016, the following Project Milestones for Phase I have
been met, and the corresponding credits shall be released:
Task/Milestones
Credit
1) MBI and BPDP Approved by DWR, Conservation Easement Recorded 20%
And Financial Assurance Posted
TOTAL: 20%
By copy of this correspondence, DWR confirms that you have satisfied the above requirements for
the above -referenced tract. Therefore, 20% of your Jordan Lake riparian buffer Preservation credits
(0.20 x 2,700.7 ft' = 540.14 ft2) are now available for sale.
In addition, 20% of your generated nitrogen nutrient offset credits (0.20 x 8,026.27 lb -N = 1,605.25
lb -N) and 20% of your generated phosphorus credits (0.20 x 532.09 lb -P = 106.421b -P) are now
available for sale. Generated credits are credits that have not been applied to the appropriate delivery
factor.
The delivery factors applied to this bank due to its location in the 14 -digit HUC 03030002060070 are
89% for nitrogen and 79% for phosphorous. Therefore, the total amounts of nutrient offset credits
for this site after application of delivery factors are 7,143.38 lb -N delivered and 420.34 lb -P
delivered. By copy of this correspondence, 20% of your delivered nitrogen offset credits (0.20 x
State of North Carolina I Environmental Quality I Water Resources
1617 Mail service Center I Raleigh, North Carolina 27699-1617
919 807 6300

Neville Farms Phase I
June 29, 2016
Page 2 of 2
7,143.38 lb -N = 1,428.68 lb -N) and 20% of your delivered phosphorus credits (0.20 x 420.34 lb -P =
84.07 lb -P) are now available for sale. Please update your credit ledgers accordingly.
Please note that only the delivered nutrient offset credits can be sold from this bank and must
be used for authorized impacts in the Upper New Hope Sub -watershed. Additionally, the
riparian buffer credits must be used for authorized impacts in the Upper New Hope Sub -
watershed according to guidelines in the Consolidated Buffer Mitigation Rule, 15A NCAC 02B
.0295, which became effective on November 1, 2015. Buffer Preservation credits cannot be
converted into nutrient offset credits.
Please use the Credit Ledger Templates submitted with the MBI to track and report credit availability
for the Neville Farms Phase I Bank Parcel. Upon receiving this correspondence, please submit three
credit ledgers to DWR reflecting the availability of credits released for each mitigation type.
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/kym
cc: File Copy (Katie Merritt)