20140704 Ver 2_Credit Release Task 3_20160809

PAT MCCRORY
Governor
DONALD R. VAN DER VAART
Secretary
Water Resources S. JAY ZIMMERMAN
ENVIRONMENTAL QUALITY
Director
August 9, 2016
DWQ Project#: 2014-0704v2
Johnston County
Daniel Ingram
EBX Neuse 1, LLC
302 Jefferson Street, Suite 110
Raleigh, NC 27605
Re: EBX Neuse Riparian Buffer Umbrella Mitigation Bank Instrument (UMBI)
Buffalo Branch Buffer&Nutrient Offset Bank Parcel Credit Release—Task 3
Dear Mr. Ingram:
On May 31, 2016,the Division of Water Resources (DWR) received an As-Built Report from
EBX Neuse I, LLC (EBX), an affiliate of Resource Environmental Solutions, LLC (RES), for the
subject site. On June 9, 2016, Katie Merritt with DWR,requested clarifications to the report.
On June 9 2016, Brian Hockett w/EBX provided a satisfactory response to the clarification
request. According to the As-Built survey submitted with the As-Built Report, there are slight
adjustments in the total amounts of Buffer Mitigation credits and Nitrogen Nutrient Offset
credits as compared to the Bank Parcel Development Package. The subject site has generated
14.2 acres (618,552 ft2) of buffer restoration credits, 0.68 acres (29,621 ft2) of buffer
preservation credits (unchanged) and 6.97 acres (15,843 lbs-N) of Nitrogen nutrient offset
credits. The credits being released have been modified to reflect any changes to the creditable
acreage as proposed in the BPDP.
On April 13, 2015, DWR received a performance bond (#RLB0015986) to cover performance
obligations for the construction of the subject site. This bond expired on March 18, 2016. By
copy of this letter, the performance obligations to construct the subject site have been met and
DWR is releasing EBX from its financial assurance obligations with regards to the performance
bond (#RLB0015986)with RLI Surety, a division of RLI Insurance Company.
On August 9, 2016, DWR received a performance bond (#RLB0016536) issued to EBX to cover
monitoring and maintenance at the subject site. The term of this bond applies from July 19, 2016
to July 19, 2017. Therefore, EBX is required to renew the performance bond prior to July 19,
2017 and is required to renew the bond annually for at least 4 more years. Future credit releases
will be dependent on both the renewal of this performance bond and the annual monitoring
reports.
State of North Carolina I Environmental Quality I Water Resources
1617 Mail service Center Raleigh,North Carolina 27699-1617
919 807 6300

Buffalo Branch (EBX)
August 9, 2016
Page 2 of 2
According to the UMBI signed on November 10, 2008, the following Project Milestones have
been met, and the corresponding credits shall be released:
Task/Milestones Credit
3) Approval of As-Built Report 10%
By copy of this correspondence, DWR confirms that you have satisfied the above requirements
for the above-referenced tract and 10% of your Neuse riparian buffer credits (0.10 x 618,552 ft2
=61,855.2 ft2) excluding Preservation minus 266.4 ft2 yields 61,588.8 ft2 are now available for
sale. Additionally, 10% of your Neuse riparian buffer Preservation credits (0.10 x 29,621 ft2=-
2,962.1
2,962.1 ft2) are now available for sale. Lastly, 10% of your nitrogen nutrient offset credits (0.10
x 15,843 lb-N= 1,584.3 lb-N)plus 21.6 lb-N yields 1,605.9 lbs-N are now available for sale.
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 Watershed. Additionally, 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. Additionally, buffer Preservation credits cannot be
converted into nutrient offset credits.
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)
Cara Conder—EBX (via electronic mail)