20120144 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 10, 2016
John Hutton DWR Project #: 2012-0144v2
312 West Millbrook Rd, Suite 225
Raleigh, NC 27609
Re: WEI-Buck Swamp Neuse 01 Umbrella Mitigation Banking Instrument(UMBI)
Caraway Creek (Phase I)Nutrient Offset & Riparian Buffer Bank
Credit Release—Task 3
Dear Mr. Hutton:
On May 31, 2016, the Division of Water Resources (DWR)received an As-Built Report from
Wildlands Engineering, Inc. on behalf of Wildlands Holdings II, LLC (WEI) for the subject site.
On June 28, 2016 and July 6, 2016, Katie Merritt with DWR, requested clarifications and edits to
the report. On August 9, 2016, DWR received a revised As-Built report with all of the
recommended clarifications and edits. 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 3.18 acres (138,693 ft2) of buffer restoration credits, and 23.36 acres
(53,097.75 lbs) 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 August 5, 2015, DWR received a performance bond (#106287502)to cover performance
obligations for the construction of the subject site. This bond expires upon approval of the As-
Built Report for Phase 1 of the subject site. By copy of this letter, the performance obligations to
construct the subject site have been met and DWR is releasing WEI from its financial assurance
obligations with regards to the performance bond (#106287502)with Travelers Casualty and
Surety Company of America.
On May 24, 2016, DWR received a performance bond(#106405077) issued to WEI to cover
monitoring and maintenance at the subject site. The term of this bond applies from May 13,
2016 until November 30, 2017. Therefore, WEI is required to renew the performance bond prior
to November 30, 2017. 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 I Raleigh,North Carolina 27699-1617
919 807 6300

Wildlands Holdings II, LLC
Caraway Creek(Phase I)
Page 2 of 2
August 10, 2016
According to the UMBI, signed on June 10, 2014 and modified on April 2, 2015, the following
Project Milestones have been met, and the corresponding credits shall be released:
Task/Milestones Credit
3) Monitoring Financial Assurance Posted and 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 138,693 ft2
= 13,869.3 112) minus 8,775.2 ft2 yields 5,094.1 ft2 are now available for sale. Additionally, 10%
of your nitrogen nutrient offset credits (0.10 x 53,097.75 lb-N= 5,309.78 lb-N)minus 1,890.9
lb-N yields 3,418.88 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 Lake Watershed pursuant to
15A NCAC 02B .0240. 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.
Please feel free to call Katie Merritt at(919) 807-6371 if you have any questions regarding this
correspondence.
Sincerely,
I 4, .4
Karen Higgins, Supervisor
401 & Buffer Permitting Branch
KAH/km
cc:File Copy(Katie Merritt)
Robert Bugg—Wildlands Holdings II, LLC (via electronic mail; [e-mail])