20150636 Ver 1_Credit Release (Ph I & II) Task 3_20170324

Water Resources
ENVIRONMENTAL QUALITY
March 24, 2017
Mike Hermann
Watershed Investments NC, LLC
1630 Weatherford Circle
Raleigh, NC 27604
Re: Neville Farms Mitigation Bank Instrument (MBI)
Neville Farms Phase I Bank Parcel Credit Release — Task 3
Dear Mr. Hermann:
ROY COOPER
Governor
MICHAEL S. REGAN
Sect e/mv
S. JAY ZIMMERMAN
Director
DWQ Project #: 2015-0636
Orange County
On March 10, 2017 the Division of Water Resources (DWR) received an As -Built Report from
Watershed Investments NC, LLC (WINC) for Phase I and Phase II of the Neville Farms Mitigation
Site. On March 16, 2017, Katie Merritt with DWR, requested clarifications and edits to the report.
On March 21, 2017, 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 and Phosphorus
Nutrient Offset credits as compared to the Bank Parcel Development Package. The subject site has
generated 0.40 acres (1,742.4 ft2) of buffer preservation credits, 3.74 acres (7,220.59 lbs) of Nitrogen
nutrient offset credits and 3.74 acres (424.90 lbs) of Phosphorus nutrient offset credits. The credits
being released have been modified to reflect any changes to the creditable acreage as proposed in the
BPDP.
On June 27, 2016, DWR received a performance bond (#CEO 1492400035) to cover performance
obligations for the construction of Phase 1 and Phase II of the Neville Farm Mitigation Site. This
bond expires upon approval of the As -Built Report for Phase 1 & Phase II of the Neville Farms
Mitigation Site. By copy of this letter, the performance obligations to construct the subject site have
been met and DWR is releasing WINC from its financial assurance obligations with regards to the
performance bond (#CEO 1492400035) with Philadelphia Indemnity Insurance Company.
On February 27, 2017, DWR received a performance bond (#CE00155800021) issued to WINC to
cover monitoring and maintenance for Phase I and Phase II of the Neville Farms Mitigation Site.
The term of this bond applies from February 21, 2017 until February 21, 2018. Therefore, WINC is
required to renew the performance bond prior to February 21, 2018. Future credit releases will be
dependent on both the renewal of this performance bond and the annual monitoring reports
According to the MBI signed on January 7, 2016, the following Project Milestones for Phase I have
been met, and the corresponding credits shall be released:
State of North Carolina I Environmental Quality I Water Resources
1617 Mail Service Center I Raleigh, North Carolina 27699-1617
919 807 6300

Task/Milestones
Neville Farms Phase I
Task 3 Release
March 24, 2017
Credit
3) Monitoring Financial Assurance Posted and Approval of 10%
As -Built Report
TOTAL: 10%
By copy of this correspondence, DWR confirms that you have satisfied the above requirements for
the above -referenced tract. Therefore, 10% of your Jordan Lake riparian buffer Preservation credits
(0.10 x 1,742.4 ft2 = 174.24 ft2) minus 383.32 ft2 results in 209.08 ft2 of buffer Preservation credits
that must be deducted from your available credits. No buffer credits are being released with this
letter, and you must update your credit ledger accordingly.
In addition, 10% of your generated nitrogen nutrient offset credits (0.10 x 8,113.03 lb -N = 811.30
lb -N) plus 34.71 lbs -N yields 846.01 lbs -N available for sale. Additionally, 10% of your generated
phosphorus credits (0.10 x 537.85 lb -P = 53.79 lb -P) plus 2.3 lbs -P yields 56.09 lbs -P that are now
available for sale. Generated credits are credits that have not been applied to the appropriate delivery
factor.
The delivery factors applied to this bank due to its location in the 14 -digit HUC 03030002060070 are
89% for nitrogen and 79% for phosphorous. Therefore, the total amounts of nutrient offset credits
for this site after application of delivery factors are 7,220.59 lb -N delivered and 424.901b -P
delivered. By copy of this correspondence, 10% of your delivered nitrogen offset credits (0.10 x
7,220.591b -N = 722.061b -N) plus 30.881bs-N yields 752.941bs-N available for sale. Additionally,
10% of your delivered phosphorus credits (0.10 x 424.90 lbs -P = 42.49 lbs -P) plus 1.82 lbs -P
yields 44.31 lbs -P that are now available for sale. Please update your credit ledgers accordingly.
Please note that only the delivered nutrient offset credits can be sold from this bank and must
be used for authorized impacts in the Upper New Hope Sub -watershed. Additionally, the
riparian buffer credits must be used for authorized impacts in the Upper New Hope Sub -
watershed according to guidelines in the. Consolidated Buffer Mitigation Rule, 15A NCAC 02B
.0295, which became effective on November 1, 2015. Buffer Preservation credits cannot be
converted into nutrient offset credits.
Please feel free to call Katie Merritt at [phone] if you have any questions regarding this
correspondence.
KAH/kym
cc: File Copy (Katie Merritt)
Sincerely,
4tvf� at4lt'-
Karen Higgins, Supervisor
401 and Buffer Permitting Branch
Page 212

Water Resources
ENVIRONMENTAL QUALITY
March 24, 2017
Mike Hermann
Watershed Investments NC, LLC
1630 Weatherford Circle
Raleigh, NC 27604
Re: Neville Farms Mitigation Bank Instrument (MBI)
Neville Farms Phase II Bank Parcel Credit Release — Task 3
Dear Mr. Hermann:
ROY COOPER
Governor
MICHAEL S. REGAN
Secretary
S. JAY ZIMMERMAN
Director
DWQ Project #: 2015-0636
Orange County
On March 10, 2017 the Division of Water Resources (DWR) received an As -Built Report from
Watershed Investments NC, LLC (WINC) for Phase I and Phase II of the Neville Farms Mitigation
Site. On March 16, 2017, Katie Merritt with DWR, requested clarifications and edits to the report.
On March 21, 2017, 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 and Phosphorus
Nutrient Offset credits as compared to the Bank Parcel Development Package. The subject site has
generated 1.30 acres (55,321.20 W) of buffer restoration credits and 0.54 acres (2,330.50 ft2) of
buffer preservation credits. The credits being released have been modified to reflect any changes to
the creditable acreage as proposed in the BPDP.
On June 27, 2016, DWR received a performance bond (#CEO 1492400035) to cover performance
obligations for the construction of Phase 1 and Phase II of the Neville Farm Mitigation Site. This
bond expires upon approval of the As -Built Report for Phase 1 & Phase II of the Neville Farms
Mitigation Site. By copy of this letter, the performance obligations to construct the subject site have
been met and DWR is releasing WINC from its financial assurance obligations with regards to the
performance bond (#CE01492400035) with Philadelphia Indemnity Insurance Company.
On February 27, 2017, DWR received a performance bond (#CE00155800021) issued to WINC to
cover monitoring and maintenance for Phase I and Phase II of the Neville Farms Mitigation Site.
The term of this bond applies from February 21, 2017 until February 21, 2018. Therefore, WINC is
required to renew the performance bond prior to February 21, 2018. Future credit releases will be
dependent on both the renewal of this performance bond and the annual monitoring reports
According to the MBI signed on January 7, 2016, the following Project Milestones for Phase II have
been met, and the corresponding credits shall be released:
State of North Carolina I Environmental Quality I Water Resources
1617 Mail Service Center I Raleigh, North Carolina 27699-1617
919 807 6300

Task/Milestones
Neville Farms Phase II
Task 3 Release
March 24, 2017
Credit
3) Monitoring Financial Assurance Posted and Approval of 10%
As -Built Report
TOTAL: 10%
By copy of this correspondence, DWR confirms that you have satisfied the above requirements for
the above -referenced tract. Therefore, 10% of your Jordan Lake riparian buffer Preservation credits
(0.10 x 2,330.50 ft2 = 233.05 ft2) minus 182.92 ft2 yields 50.13 ft2 are now available for sale.
Additionally, 10% of your Jordan Lake riparian buffer Restoration credits (0.10 x 55,321.20 ft2 =
5,532.12 ft2) plus 1,568.16 ft2 yields 7,100.28 ft2 are now available for sale
The riparian buffer Preservation and Restoration credits must be used for authorized impacts
in the Upper New Hope Sub -watershed 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.
KAH/kym
cc: File Copy (Katie Merritt)
Sincerely,
A n�
Karen Higgins, Supervisor
401 and Buffer Permitting Branch
Page 212