20110720 Ver 2_Credit Release Task 5_20161020

PAT MCCRORY
Governor
DONALD R. VAN DER VAART
Secretaiv
Water Resources S. JAY ZIMMERMAN
ENVIRONMENTAL QUALITY
Director
October 20, 2016
DWR Project#: 2011-0720v2
Orange County
Ms. Daniel Ingram
Resource Environmental Solutions, LLC
302 Jefferson Street, Suite 110
Raleigh,NC 27605
Re: Upper Neuse River Basin Umbrella Mitigation Banking Instrument (LIMBI)
Cedar Grove Bank Credit Release—Task 5
Dear Mr. Ingram:
On September 8, 2016, the Division of Water Resources (DWR) received a Year 2 Monitoring
Report from Resource Environmental Solutions, LLC (RES) on behalf of Environmental Banc &
Exchange, LLC (EBX), for the subject site. On October 6, 2016, Katie Merritt with DWR,
submitted comments in an email to Mr. Hockett as part of her review. Overall, site conditions
appear to look good and vegetation data results show stem densities higher than the required 320
stems/acre throughout most of the site. DWR supports EBX's decision to provide supplemental
plantings around plots 6, 8 and 12 this Fall/Winter. Additionally, no encroachment within the
easement boundaries was observed.
On October 17, 2016, DWR received two bond riders and a continuation certificate for
performance bond (#RLB0016052) issued to EBX in the amount of$60,000 to cover monitoring
and maintenance at the subject site. The term of this bond now applies from December 31, 2016
to December 31, 2017. Therefore, EBX is required to renew the performance bond prior to
December 31, 2017 and is required to renew the bond annually for at least 3 more years. Future
credit releases will be dependent on both the renewal of this performance bond and the approval
of annual monitoring reports.
According to the UMBI signed on February 10, 2012, the following Project Milestones have
been met, and the corresponding credits shall be released:
Task/Milestones Credit
5) Year 2 Monitoring Report approved by 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 (0.1 x 640,486 ftZ =
64,048.6 ft') are available for sale. Additionally, 10% of your nitrogen nutrient offset credits
State of North Carolina I Environmental Quality I Water Resources
1617 Mail service Center I Raleigh,North Carolina 27699-1617
919 807 6300

Cedar Grove Bank Site
October 20, 2016
Page 2 of 2
(0.1 x 55,052.54 lb-N=5,505.25 lb-N) are available for sale. Lastly, 10% of your phosphorous
nutrient offset credits (0.1 x 3,545.81 lb-P =354.58 lb-P) are 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 which includes only the Upper and Lower Falls
Watersheds as defined in 15A NCAC 02B .0276. 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,
Karen Higgins, Supervisor
401 and Buffer Permitting Branch
KAH/km
cc:File Copy(Katie Merritt)
Cara Conder—EBX (via electronic mail)