20120144 Ver 2_Credit Release Task 4_20161010

Water Resources
ENVIRONMENTAL OVALITY
October 10, 2016
John Hutton
312 West Millbrook Rd, Suite 225
Raleigh, NC 27609
PAT MCCRORY
Governor
DONALD R. VAN DER VAART
Secretary
S. JAY ZIMMERMAN
DWR Project #: 2012-0144v2
Director
Re: Neuse Riparian Buffer & Nutrient Umbrella Mitigation Banking Instrument (LIMBI)
Caraway Creek (Phase I) Mitigation Bank
Credit Release — Task 4
Dear Mr. Hutton:
On September 22, 2016, the Division of Water Resources (DWR) received a Year 1 Monitoring
Report from Wildlands Engineering, Inc. on behalf of Wildlands Holdings II, LLC (WEI) for the
subject site. Vegetative plot data confirms that success criteria throughout the site is greater than
the required 320 stems/acre. Additionally, no encroachment within the easement boundaries was
observed.
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.
By copy of this correspondence, DWR authorizes a reduction in the financial assurance
(performance bond #106405077) from $100,000 to $80,000 through the Travelers Casualty and
Surety Company of America. This reduction is 20% of the original Performance Bond amount
of $100,000.00 and aligns with the implementation of the financial assurance provisions of your
Neuse Riparian Buffer and Nutrient Umbrella Mitigation Banking Instrument (UMBI),
According to the LIMBI, 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
4) Monitoring Report #1: Approved by the DWR 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 ft'
= 13,869.3 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) are now available for sale.
State of North Carolina I Environmental Quality I Water Resources
1617 Mail service Center I Raleigh, North Carolina 27699-1617
919 8076300

Caraway Creek Mitigation Bank
October 10, 2016
Page 2 of 2
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 [phone] if you have any questions regarding this
correspondence.
Sincerely,
Karen Higgins, Supervisor
401 & Buffer Permitting Branch
KAH/km
cc:File Copy (Katie Merritt)
Robert Bugg — Wildlands Holdings II, LLC (via electronic mail; rbugggwildlandseng com )