20150636 Ver 1_Buffer Credit converstion to nutrient_20161028

Strickland, Bev
From:Merritt, Katie
Sent:Friday, October 28, 2016 12:19 PM
To:'mherrmann'
Subject:RE: Neville Farms Phase 2 Credit Transfer Request
Attachments:NevillePhase2Ledgers_BufferRest_20161026.pdf

Hey Mike,
DWR has received your request below and agrees to convert 100% of the available buffer restoration credits from the
Neville Farms Phase II Buffer Bank, and transfer them into Nitrogen and Phosphorus Nutrient offset credits. Therefore,
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0.24 acres (10,280.20 ft) of the riparian buffer restoration credits from the Neville Farms Phase II Buffer Bank (DWR#
2015-0636) is authorized to be converted into 0.24 acres of nutrient offsets as follows:

218 lbs Generated Nitrogen Credits & 194.22 lbs of Delivered Nitrogen Credits;
48.6 lbs Generated Phosphorus Credits & 38.39 lbs of Delivered Phosphorus Credits

This authorization complies with the Neville Farms Mitigation Banking Instrument and Bank Parcel Development Package
(BPDP). Table 6.4 from the BPDP indicates the amount of nutrient offset credit potential for this site.

You must now create Nitrogen and Phosphorus credit ledgers in addition to the buffer credit ledgers for this Bank. The
Nitrogen Nutrient Offset Ledger will have a credit in the amount of .24 acres (218 lbs of Generated Nitrogen Credits &
194.22 lbs of Delivered Nitrogen Credits and the Phosphorous Nutrient Offset Ledger will have a credit in the amount of
.24 acres (48.6 lbs Generated Phosphorus Credits & 38.39 lbs of Delivered Phosphorus Credits ). The Buffer Restoration
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Ledger will have a debit in the amount of 0.24 acres (10,280.20 ft) with a remaining balance of zero.

DWR received the attached ledgers with your request, dated October 26, 2016. Your transfer request is
approved. Please show the transactions on the ledgers as follows:

“Purchaser” column on buffer ledger = DWR Approved Transfer to Neville Farms Phase II Nutrient Offset Ledgers

“Purchaser” column on both nutrient ledgers = DWR Approved Transfer from Neville Farms Phase II Buffer Ledger

This Bank will have 4 total credit ledgers: Buffer Preservation ledger, Buffer Restoration Ledger, Nitrogen Ledger and
Phosphorus ledger. Please submit all 4 credit ledgers via .pdf showing this transfer and today’s date, for posting onto

the DWR website for available banks.

Thank you,

Katie

From: mherrmann \[mailto:[e-mail]\]
Sent: Wednesday, October 26, 2016 10:29 PM
To: Merritt, Katie <[e-mail]>
Subject: Neville Farms Phase 2 Credit Transfer Request

Katie –

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Thanks for your voicemail this afternoon. Pursuant to that, I am officially requesting that the Task 1 buffer restoration
credit release from Neville Farms Phase 2 be transferred to nutrient offset. I’ve attached the credit ledgers from the
Phase 2 site that reflect this transfer request.

Thank you,
Mike Herrmann

From: mherrmann \[mailto:[e-mail]\]
Sent: Tuesday, October 25, 2016 8:15 PM
To: Merritt, Katie
Subject: RE: Phase II credit Release

Yay!

I have two items that I want to cover with you:

1.First, what would I need to do to utilize the credit release for nutrients. Based on both demand and price, it

makes sense to use the credits from Phase 2 available as nutrients – at least until the City of Durham ceases
their implementation of nutrient criteria in the stormwater program. Given that, I was going to notify the City
that, upon DEQ approval, I could utilize the credits in this release to supply seekers of nutrient offset
credit. Taking the 20% Task 1 release for nutrients would make available 194.22 N lbs and 38.39 P lbs. For
reference, I’ve included Table 6.4 in the approved BPDP details the credit available from the site at the bottom
of the email.

2.Second, should I maintain two separate ledgers for the credits releases? For example, if I utilize the credits as

nutrient, would I have a Phase 1 Nitrogen ledger and a Phase 2 Nitrogen ledger?

Mike Herrmann
1630 Weatherford Circle
Raleigh, NC 27604
(p) 919-559-6264
[e-mail]
www.watershedinvestmentsnc.net

This electronic mail communication may contain privileged, confidential, and/or proprietary information which is the property of Watershed Investments NC, LLC or
one of its affiliates. If you are not the intended recipient or an authorized agent of the intended recipient please delete this communication and notify the sender

that you have received it in error.
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From: Merritt, Katie \[mailto:[e-mail]\]
Sent: Monday, October 24, 2016 4:25 PM
To: mherrmann
Subject: Phase II credit Release

Hey Mike,
Please see your copy of the credit release letter for the Phase II Neville Farms Mitigation Bank.

Thank you,
Katie

Katie Merritt

Nutrient Offset & Buffer Banking Coordinator
401 & Buffer Permitting Unit

North Carolina Department of Environmental Quality

Work: 919-807-6371
http://portal.ncdenr.org/web/wq/401bufferpermitting
Website:

512 N. Salisbury Street, Raleigh, NC 27620

1617 Mail Service Center, Raleigh, NC 27699-1617

Email correspondence to and from this address is subject to the

North Carolina Public Records Law and may be disclosed to third parties.

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*Credits shown below are only for mitigation credits approved by the UMBI, BPDP,and As-Built.
Watershed Investments NC, LLC Neville Farms Buffer& Nutrient Offset Bank Phase 2 (DWR#2015-0636)
Upper New Hope Sub-watershed (14-Digit HUC#03030002060070)
Buffer Restoration Credit Ledger
Sale/ Purchaser Name or%of Credits Credits Debited/Sold
Project w/14 Digit HUC Released/Available to Buffer Credit Balance Local Gov't
Release Date Credit Release Bank From Bank
Square Feet Acres Square Feet Acres SquareAcres
Feet
10/25/2016 20%Credit Release for Task#1 Completion 10,280.20 0.24 10,280.20 0.24
10/26/2016 DWR Approved Transfer to Neville Nutrient 10,280.20 0.24 0 0
Total Balances 10,280.20 0.24 10280.2 0.24 0.00 0.00