20160130 Ver 1_Credit Release Task 2 (Partial)_20170124

Wa ter Resources
ENVIRONMENTAL QUALITY
January 24, 2017
John Hutton
312 West Millbrook Rd, Suite 225
Raleigh, NC 27609
ROY COOPER
MICHAEL S. REGAN
S. JAY ZIMMERMAN
i),; - a
DWR Project #: 2016-0130
Re: North Fork Little River Mitigation Banking Instrument (MBI)
North Fork Little River Nutrient Offset & Buffer Bank
Credit Release— Task 2 Partial
Dear Mr. Hutton:
Durham County
On May 26, 2016, the Division of Water Resources (DWR) approved a Bank Parcel
Development Package (BPDP) for the North Fork Little River Bank Parcel submitted by
Wildlands Holdings II, LLC (WHII). Additionally, DWR received a performance bond
(#106405076) from WHII on May 25, 2016, to cover performance obligations for the
construction of the subject site. This bond is with Travelers Casualty and Surety Company of
America and expires upon the approval of the As -Built Report.
On January 4, 2017, Katie Merritt with DWR received documentation from WHII that the
subject site had been constructed in its entirety and monitoring plots had been installed. On
January 18, 2017, Ms. Merritt, with assistance from Daniel Taylor and Kenton Beal with WHII,
inspected the site. Ms. Merritt's observations from the site visit are detailed below:
• Most of the site was planted in compliance with the approved Bank Parcel Development
package;
• All monitoring plots were installed with stems flagged ;
• Most of Feature A, the main stream onsite, and a few areas along Feature D and Feature
G were void of planted stems from TOB to +/- 15% and
• There were a few areas on the East side of Feature A that were void of planted stems
from TOB to +/- 50'
During the site visit, Ms. Merritt and Mr. Taylor discussed options available for WHII. The two
options discussed, were as follows:
Option 1 - Mow the areas void of planted stems, plant adequate stems and then have
DWR perform another site visit to confirm plantings have been completed.
Option 2 - Perform initial transect data to determine where stems were lacking and what
volunteers were present, mow if needed, plant stems where necessary, and then perform
additional transect data to show post -planted conditions of the areas.
State of North Carolina I Environmental Quality I Water Resources
1617 Mail Service Center I Raleigh, North Carolina 27699-1617
919 807 6300

North Fork Little River
Wildlands Holdings II, LLC
January 24, 2017
On January 19, 2017, Ms. Merritt requested follow-up information from WHII as well as a
recommendation for the submittal of transect data. On January 23, 2017, WHII provided a
response to Ms. Merritt's request with a decision to choose option 1 as discussed onsite.
Additionally, per Ms. Merritt's request, WHII enumerated the square footage of riparian buffer
that was not planted according to the BPDP and determined the total to be approximately 2.2
acres (94,986 ft2). This number is being deducted from this credit release. A map of the
unplanted areas is attached to this letter for reference. Additionally, DWR is issuing a 15%
credit release with a contingency that the remaining 5% credit release (along with the square
footage that is being deducted), will be issued when DWR has confirmed that the areas voided of
planted stems have been planted according to the approved BPDP.
According to the MBI, signed on April 19, 2016, the following Project Milestones have been
met, and the corresponding credits shall be released:
Task/Milestones Credit
2) Mitigation Site Earthwork, Planting & Installation 15%
of Monitoring Devices Partially Completed
TOTAL: 15%
By copy of this correspondence, DWR confirms that you have partially satisfied the above
requirements for the above -referenced tract. The unplanted areas (94,986 ft2) exceed the 15%
credit release (90,822.60 ft2) for riparian buffer credits. Therefore, no riparian buffer credits are
being released at this time. However, 15% of your Nitrogen nutrient offset credits (0.15 x
41,823.56 lb -N = 6,273.53 lb -N) and 15% of your Phosphorous nutrient offset credits (0.15 x
2,693.76 lb -P = 404.06 lb -P) 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 Upper and Lower Falls Watersheds as defined in 15A NCAC 02B
.0276 within the Neuse River Basin. Additionally, the riparian buffer credits must be used
for impacts in the Neuse River Basin according to guidelines in the new Temporary
Consolidated Buffer Mitigation Rule, 15A NCAC 02B .0295, which became effective on
November 1, 2015.
Page 213

North Fork Little River
Wildlands Holdings II, LLC
January 24, 2017
Please feel free to call Katie Merritt at [phone] if you have any questions regarding this
correspondence.
Sincerely,
1 `
Karen Higgins, Supervisor
401 & Buffer Permitting Branch
KAH/km
Attachments: Aerial "Areas to be Planted"
cc:File Copy (Katie Merritt)
Robert Bugg — Wildlands Holdings Il, LLC (via electronic mail; rbugggwildlandseng com )
P�r � 3 1 3

WILD LAND S
ENGINEERING
Area to be Planted
North Fork Little River Mitigation Site
0 150 300 Feet HUC 03020201
Durham County, NC
KB 112312017