20160130 Ver 1_Credit Release Task 3_20170601

Water Resources
ENVIRONMENTAL QUALITY
June 1, 2017
John Hutton
Wildlands Holdings II, LLC
312 West Millbrook Rd, Suite 225
Raleigh, NC 27609
ROY COOPER
cafe..,
MICHAEL S. REGAN
Searetap
S. JAY ZIMMERMAN
Director
DWR Project #: 2016-0130
Re: North Fork Little River Mitigation Banking Instrument (MBI)
North Fork Little River Nutrient Offset & Buffer Bank
Credit Release— Task 3
Dear Mr. Hutton:
Durham County
On April 24, 2017, the Division of Water Resources (DWR) received an As -Built Report from
Wildlands Engineering, Inc. on behalf of Wildlands Holdings II, LLC (WEI) for the subject site. On
May 24, 2017, DWR notified WEI that the As -Built report was approved. According to the As -Built
survey submitted with the As -Built Report, there are slight adjustments in the total amounts of
Nitrogen and Phosphorus Nutrient Offset credits as compared to the Bank Parcel Development
Package. The subject site has generated 13.9 acres (6051484 ftz) of buffer restoration credits, and
18.31 acres (41,619 lbs-Nitrogeh and 2,680.58 lbs -Phosphorus) of nutrient offset credits. The credits
being released have been modified to reflect, any changes to the creditable acreage as proposed in the
BPDP.
On May 25, 2016, DWR received a performance bond (#106405076) to cover performance
obligations for the construction of the subject site. This bond expires upon approval of the As -Built
Report for the subject site. As of May 24, 2017, the performance obligations to construct the subject
site have been met and DWR released WEI from its financial assurance obligations with regards to
the performance bond (#106405076) with Travelers Casualty and Surety Company of America.
On May 30, 2017, DWR received a performance bond (#106608502) issued to WEI to cover
monitoring and maintenance at the subject site. The term of this bond applies from May 24, 2017
until approval by DWR of the Year 1 Monitoring Report. Therefore, WEI is required to renew the
performance bond upon notification of approval of the Year 1 Monitoring Report. 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 April 19, 2016, the following Project Milestones 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, Noah Carolina 27699-1617
919 807 6300

Task/Milestones
North Fork Little River
Wildlands Holdings II, LLC
June 1, 2017
Credit
3) Monitoring Financial Assurance Posted & Approval of As -Built Report 10%
By copy of this correspondence, DWR confirms that you have fully satisfied the above requirements
for the above -referenced tract and 10% of your Neuse riparian buffer credits (0.10 x 605,484 fe =
60,548.4 fe) are now available for sale. Additionally, 10% of your Nitrogen nutrient offset credits
(0.10 x 41,619 lb -N = 4,161.9 lb -N) minus 81.82 lbs -N results in 4,080.08 lbs -N that are now
available for sale. Additionally, 10% of your Phosphorous nutrient offset credits (0.10 x 2,680.58
lb -P = 268.061b -P) minus 5.171bs-P results in 262.89 lbs -P that 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.
Please feel free to call Katie Merritt at [phone] if you have any questions regarding this
correspondence.
Sincerely,
J4� ,
Karen Higgins, Supervisor
401 & Buffer Permitting Branch
cc:File Copy (Katie Merritt)
Robert Bugg — Wildlands Holdings II, LLC (via electronic mail; rbugg_Awildlandseng com )
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