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HomeMy WebLinkAbout20140957 Ver 2_20170913 USACE SAW Draft Mitigation Plan_20170913Strickland, Bev From: Stephanie Collins <scollins@res.us> Sent: Wednesday, September 13, 2017 10:31 AM To: Samantha.J.Dailey@usace.army.mil; Emily.C.Greer@usace.army.mil Cc: Higgins, Karen; Spencer Trichell; richard.b.gangle@dominionenergy.com; T.J. Mascia; Daniel Ingram Subject: Draft Compensatory Mitigation Plan - ACP in NC Attachments: 20170913 USACE SAW Draft Mitigation Plan.pdf Good Morning, On behalf of Atlantic Coast Pipeline, LLC (Atlantic), RES is submitting the attached Draft Compensatory Mitigation Plan for unavoidable wetland and stream impacts associated with the construction of the proposed Atlantic Coast Pipeline (ACP) in North Carolina. Upon review of the attached, please contact Spencer Trichell at (804) 273-3472 or Spencer.Trichell@dominionenergy.com if there are any questions or comments. Thank you, Stephanie Stephanie Collins Regulatory Specialist RES I res.us Direct: 804.729.8994 1 Mobile: 804.337.9943 CONFIDENTIALITY NOTICE: This e-mail message, including any attachments, is for the sole use of the intended recipient(s) and may contain confidential and privileged information or otherwise protected by law. Any unauthorized review, use, disclosure or distribution is prohibited. If you are not the intended recipient, please contact the sender by reply e-mail and destroy all copies of the original message. Dominion Energy services, Inc. 5000 Dominion Boulevard, Glen Allen, VA 23060 September 12, 2017 Ms. Samantha Dailey U.S. Army Corps of Engineers — Wilmington District Regulatory Division 3331 Heritage Trade Drive, Suite 105 Wake Forest, North Carolina 27587 Samantha.J.Dai leyy�a,usace.army.mil Ms. Emily (Pearl) Greer U.S. Army Corps of Engineers — Wilmington District Regulatory Division 69 Darlington Avenue Wilmington, NC 28403 Emily. C.GreerQusace, army. mil OWM Dominion WEnergy. Re: Atlantic Coast Pipeline Submittal of Compensatory Mitigation Plan for the Proposed Atlantic Coast Pipeline Project in North Carolina Dear Ms. Dailey and Ms. Greer: Atlantic Coast Pipeline, LLC, (Atlantic) is pleased to present this Compensatory Mitigation Plan (Plan) for unavoidable wetland and stream impacts associated with the construction of the proposed Atlantic Coast Pipeline (ACP) in ten (10) Hydrologic Unit Codes (HUCs) in North Carolina. The goal of this Plan is to fulfill the requirements and conditions of the Nationwide Permit (NWP) 12, in accordance with Sections 404 and 401 of the Clean Water Act. This Plan describes how Atlantic will compensate for the unavoidable wetland and stream impacts in the subject HUCs through a combination of mitigation bank credit purchase, ILF credit purchase (where applicable), and watershed -based off-site permittee responsible mitigation (PRM). In the HUCs where PRM is proposed, Atlantic has contracted with Resource Environmental Solutions, LLC, and Clearwater Mitigation Solutions to implement PRM plans, monitor and ensure performance standards are met, and long-term management of the PRM sites as described in 33 CFR 3323 (1) (Federal Register 2008). U.S Army Corps of Engineers —Raleigh and Wilmington Districts Atlantic Coast Pipeline — Compensatory Mitigation Plan September 12, 2017 Page 2 of 2 Atlantic requests your review and approval of this Plan. Atlantic appreciates the coordination to date and looks forward to continuing to work with you on this project. Please contact Spencer Trichell at (804) 273-3472 or Soencer.Trichellna dominionener¢y com• if there are questions regarding this submittal. Please direct written responses to: Richard Gangle Dominion Energy Resources, Inc. 5000 Dominion Boulevard Glen Allen, Virginia 23060 Sincerely, Richard Gangle Environmental Manager, Atlantic Coast Pipeline cc: ISpencer Trichell, Dominion Karen Higgins, NC Department of Water Resources Attachments Compensatory Mitigation Plan for the Proposed Atlantic Coast Pipeline in North Carolina Atlantic Coast Pipeline . Prepared for: Mr. Richard Gangle Dominion Energy Services, Inc. 5000 Dominion Boulevard Glen Allen, Virginia 23060 Submitted to: Ms. Samantha Dailey .S. Army Corps of Engineers — Wilmington District Regulatory Division k,; 3331 Heritage Trade Drive, Suite 105 Wake Forest, North Carolina 27587 Ms. Emily (Pearl) Greer S. Army Corps of Engineers — Wilmington District Regulatory Division 69 Darlington Avenue Wilmington, NC 28403 Prepared by: pres Resource Environmental Solutions Table of Contents 1.0 Introduction......................................................................................................................... 1.1 Mitigation Banks............................................................................................................. 1.2 In -Lieu Fee Fund............................................................................................................. 1.3 Permittee Responsible Mitigation................................................................................... Attachment A Attachment B Table: Cumulative Impacts in North Carolina Letters of Availability from Mitigation Banks 2 3 3 4 1.0 Introduction Atlantic Coast Pipeline, LLC, (Atlantic)/(Permittee) presents this Compensatory Mitigation Plan for compensatory mitigation for unavoidable wetland impacts associated with the construction of the proposed Atlantic Coast Pipeline (ACP) in the following Hydrologic Unit Codes (HUCs): 03010107, 03010204, 03020101, 03020102, 03020201, 03020203, 03030004, 03030005, 03030006, and 03040203. This Plan is prepared in accordance with the Compensatory Mitigation for Losses of Aquatic Resources; Final Rule issued on April 10, 2008 as detailed in §332.4 (c) of the Federal Register (Volume 73 Number 70). Atlantic has completed field surveys on all accessible parcels, analyzed and confirmed impacts, and secured appropriate compensatory mitigation in accordance with the approach outlined below. Atlantic has prepared this Compensatory Mitigation Plan with precise details on compensatory mitigation by HUC for all affected HUCs, in accordance with the requirements of Nationwide Permit 12 (NWP 12) for the proposed Atlantic Coast Pipeline (ACP) within the Wilmington District. Compensation for temporary wetlands impacts occurring outside of the maintenance corridor of 15 feet on each side of the pipeline will be achieved via onsite restoration activities to be implemented in accordance with the Federal Energy Regulatory Commission (FERC) Right -of -Way (ROW) restoration guidelines for wetlands and waterbodies. Permanent loss of wetlands or streams is not anticipated to occur as a result of the ACP mainline pipeline construction or associated facilities in North Carolina. However, loss of waters of the U.S will occur as a result of access road improvements. Existing access roads will be utilized as much as possible where feasible. Where access road improvements are necessary for use, impacts will be minimized to the maximum extent practicable, and, in conjunction with other impacts will not result in more than 0.5 acre or 150 linear feet loss of waters of the U.S. at any single and complete project. Atlantic will compensate for the permanent conversion of palustrine forested (PFO) wetlands to scrub - shrub (PSS) and emergent (PEM) wetlands, due to proposed ongoing maintenance along the centerline of the ACP ROW, and for permanent losses of wetlands and streams at access roads through the use of the most environmentally preferable options consistent with the 2008 Mitigation Rule (33 CFR 332.1 et. seq.). Permanent losses of wetlands, streams, and other waters as a result of access roads are proposed to be mitigated at the following ratios: Y 2:1 ratio for riparian wetland Y 1.5:1 ratio for non -riparian wetland Y 2:1 for stream impacts A table detailing the cumulative permanent impacts associated with the North Carolina portion of the ACP, the ratio utilized, and compensation requirements is provided in Attachment A. 2 1.1 Mitigation Banks Atlantic will purchase commercially available mitigation credits from an Interagency Review Team (IRT) - approved mitigation bank as a first option. Where available in sufficient quantity to satisfy the respective mitigation need, in-kind mitigation bank credits will be purchased from mitigation banks with released credits servicing the affected areas where the permanent conversion of non -inundated deciduous hardwood wetlands or loss of wetlands, streams, and other waters would occur. Atlantic has completed research to identify wetland and stream mitigation banks with available credits that are able to service the permanent loss and conversion impacts associated with the ACP. Available credits will be purchased to mitigate for permanent loss and conversion impacts in the following HUCs: Y 03030004 (non -riparian wetland credits only) Y 03030005 (non -riparian and riparian wetland credits and stream credits) Y 03030006 (stream credits only) Letters of availability from the mitigation banks that are able to service impacts in the above -referenced HUCs are provided in Attachment B. 1.2 In -Lieu Fee (ILF) Fund The North Carolina Department of Environmental Quality (NCDEQ) Division of Mitigation Services (DMS) ILF program will be utilized in HUCs where bank credits are not available and the required mitigation is low enough that permittee responsible mitigation (PRM) is not ecologically preferable. As part of their due diligence in the planning and pre -application phases of the ACP project, Atlantic sought DMS acceptance of all potential required mitigation, including riparian buffer impacts for the purposes of the NCDEQ Section 401 Water Quality Certification; while simultaneously brokering available bank credit purchases and engaging a PRM approach in select HUCs. Atlantic received correspondence from DMS on August 31, 2017, indicating that DMS is willing to accept payment for compensatory mitigation for impacts associated with construction of the proposed ACP. DMS is willing to accept payment for the mitigation required under the conditions indicated below based on credit availability: Y DMS proposes to use in-kind closed -out surplus credits from Pasquotank 03010205 for the Chowan 04 non -riparian wetland impacts; Y DMS proposes to use closed -out surplus riparian credits from Tar -Pamlico 03020102 for the riparian wetland impacts in Tar -Pam 01; Y In accordance with the directive from the February 8, 2011 IRT meeting, non -riparian wetland impacts located in the mountains and piedmont areas of North Carolina (Neuse 01) can be accepted as requested, but mitigated utilizing riparian wetland mitigation credits and invoiced using the riparian wetland fee schedule; and Y DMS proposes to use in-kind closed -out surplus credits from Cape Fear 03030005 for the Cape Fear 03030006 riparian wetland impacts. In accordance with NCDEQ guidance, Atlantic will provide compensatory mitigation for impacts to riparian buffers where other wetland mitigation will not occur through the purchase of DMS riparian buffer credits. The acceptance letter, including the above -referenced conditions, from DMS is provided in Attachment B. 1.3 Permittee Responsible Mitigation In the event that a permanent conversion or loss of jurisdictional wetlands or streams occurs in a sub - watershed where sufficient released mitigation bank credits are not available, Atlantic is securing appropriate mitigation via implementation of PRM in accordance with the approved Permittee Responsible Mitigation Plan (PRMP). Consistent with the 2008 Mitigation Rule, utilization of these alternatives is based on ecological and other relevant factors in light of the specific nature of the impacts. Atlantic is implementing PRM projects within several of the affected subbasins in North Carolina as a primary means of compensating for wetland impacts. These include the following: Tar -Pamlico (HUCs 03020101 and 03020102), Neuse (HUCs 03020201 and 03020203), Cape Fear (HUC 0303006) and Lumber (03040203). A PRMP for Tar -Pamlico (HUCs 03020] 01 and 03020102), Neuse (HUC 03020203), Cape Fear (HUC 0303006) and Lumber (03040203) was submitted to the USACE Raleigh and Wilmington Field Offices on August 4, 2017. In the Neuse River Basin, HUC 03020201, Atlantic is proposing PRM at the Lowlands Wetland Mitigation site in Johnston County. The Lowlands mitigation site is approximately 71.3 acres. Clearwater Mitigation Solutions will provide wetland mitigation units generated from the Lowlands Wetland Mitigation Site to offset unavoidable impacts to wetlands associated with the ACP. The ACP and its permanent 50 -ft ROW are proposed to bisect the Site with pipeline construction scheduled for 2019. Appropriate measures and considerations will be made to allow for the integration and construction of the ACP within the Site. A PRMP for the Lowlands Wetland Mitigation site was originally submitted to the USACE Raleigh and Will correction was submitted on August 23, 2017. 4 Attachment A Table: Cumulative Impacts in North Carolina Table: Cumulative Impacts in North Carolina Compensation Worland Convereiov Permavevl WUlnnd CompenaaBov Cnmp¢vannon Riparinn Hutto Cumpcnmtion Projec[Torel (North Gro(ina) Impacts [sere) Requ'r"e°t Was (acre) Requirement lE:IJ WalerblvLdy Permanent lmpaet Regvirement(2:1) Impaet(SQFI) Requirement 154.81 154.81 O.RS 1.20 1 13.00 1 1,471.00 1 589,471.33 1,351,991.00 Cawartlin Claeeifieationl Wetland Conversion Campensaaon Pe manent Compensation Permanent Waterbotly Compensation Riparian Huffer CampensaRon HOGS Waferehetl Waterbod y Type RiparianMon-Riparian Ira pulls lucre) Re 9uiremevt(1:1) Wetland Loss Requirement 11:17 ImpeU (LF) Requirement (2:1) Impact (SQ FT) Ratio Requirement PEM N/A 0.00 0.00 0.00 p.11 N/A N/A N/A N/A N/A PFO N -Rim- Riparian 113 1.]5 1.13 1.]5 0.00 0,00 000 q.pq N/A N/A WA N/A WA N/A WA N/A WA N/A 3010107 PSS NortRipmdm Ripunan 002 0.01 0.02 001 0.00 0.00 0.00 0.00 N/A N/A N/A N/A N/A N/A N/A Ephemeral N/A N/A N/A N/A N/A 000 1)00 N/A In[vmlidmt NIA N/A N/A N/A N/A 0.00 - N/A N/A N/A Pere�mial N/A N/A N/A N/A N/A 0.00 1)00 N/A WA N. 1.-1 Snurceo Mid' anon 3.91 2.91 DMS 0.00 0.00 0.00 0.00 0.00 0.00 PEM 0.00 000 0.00 N N/A N/A N/A N/A N/A PFO N-.,- Ripmian 145 654 1.45 6 0.00 0.01 0.00 0.02 N/A N/A N/A N/A N/A N/A N. N/A 3010204 P63 Nvo-R Pm- Riparian 0.04 0.01 0.04 001 0.00 000 000 0.1 NIA NIA WA N/A NIA N/A WA N/A N/A MA Epheneral N/A NIA N/A N/A MA o..00 0.00 N/A WA N/A fntumident N/A N/A N/A N/A N/A 0.00 0.00 N/A N/A N/A Peremdal NIA NIA N/A N/A N/A 0.00 0.00 N/A N/A N/A Submml B.Od 804 O.OI O.OI 0.00 0.00 0.00 0.00 Smrrcen Miri vn'nn DMS DMS PEM 0.00 0.00 0.00 0.00 N/A MA N/A N/A N/A PFO N -.R nm ltipan 6.21 10.11 6.219.Oo 10.11 000 0.00 0.00 N/A N/A N/A N/A N/A MA N/A N/A N/A N/A X0_0101 PSS N -Ripon Riparian p.1 0.03 0.00 0.03 000 0.00 0.00 0.00 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A Ephmrcrai N/A N/A NIA N/A 0.00 000 N/A N. N/A Insamlitlenl Perennial NIA NIA N/A NIA N/A N/A N/A N/A 0.00 0.00 0.00 0.00 N/A N/A N/A WA N/A N. Ripanan Bullar Zone l NIA N/A WA N/A NIA N/A ]1,494.33 3:1 214,483.00 Riparian Buffer Zone 2 N/A N/A N/A N/A NIA N/A 69.590.00 15:1 104,3R51 Submml 16.35 1.35 0.00 0.00 0.00 0.00 141,08433 318,86&00 Sources Mid'vd'on PRM DMS PEM 100000 0.00 0.00 N/A N/A N/A N/A N/A PFO NortRipenm Ripen 4.13 930 4.130,00 930 0.13 0.00 0.26 NIA N/A N/A N/A N/A MA N/A N/A N/A N/A 3020102 PSS N-Ri-a Riparian 0.81 0.00 0.81 0.00 0.00 000 0.00 0.00 N/A NIA N/A N/A N/A N/A N/A N/A N/A MA Ephemeral N/A N/A N. N/A 0.00 0.00 N/A N/A N/A Intembdant N/A N/A N/A N/A 000 0.00 NIA N/A N/A Peres W N/A N/A N. N/A 0.00 0.00 N/A N/A N/A Riparian Buller Zalw l N/A N/A WA N/A N/A N/A 73,084.33 3:1 219,253.00 Riparian Buffer Zmw2 N/A N/A N/A N/A N/A WA 54,610.00 15:1 RI9151 Submml 14.14 1.24 0.13 0.26 0.00 0.00 12],69433 301,16&00 Sources Mid' ad'on PRM PRM DMS PEM 0.00 0.00 0.00 0.1 N/A N/A N/A N/A N/A PFO N.-,nan Riparian 20,40 9.]9 20.40 9.]9 0.06 O.11 0.12 0.22 N/A N/A N/A N/A N/A N/A N/A N/A 3020201 PSS NoraRlpan Riparian 043 0.11 043 0.11 O,00 0.00 0.00 0.00 NIA N/A N/A N/A N/A N/A N/A N/A N/A N/A Ephemeral N/A N/A NIA WA 0.00 N/A N/A N/A N/A Intarmidant NIA N/A NIA N/A 31.00 62.00 N/A N/A N/A Pere , Ripmian B -Zane l N/A N/A N/A N/A N/A NIA N/A N/A 32,00 N/A 64.00 N/A N/A 114,544.33 N/A 3:1 N/A 343.633.1 Riparian Buffer Zone2 N/A N/A N. N/A N/A N/A 95,140.6] 15:17 IRI S,-, 30.13 30.13 0.17 0.24 63.00 11.00 109,68500 486,344.00 Sourren Midmien PRM PRM DMS DMS PEM 0.00 0.00 0.00 0.1 N/A N/A N/A N/A N/A PFO NO-,- Riparian '0.45 6.70 10.45 6700.00 0.00 0.1 0.1 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A 3020203 PSS N. -,non Riparian 0.08 0.00 0.08 0.00 0.00 0.00 0.1 0.1 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A Ephemeral NIA N/A N/A N/A 000 0.1 N/A N/A MA Insemlivent N/A N/A MA N/A 0.00 0.1 N/A N/A N/A Peremdal NIA NIA N/A N/A 0.o0 0.1 N/A N/A N/A Riparian Buffer Zone l NIA N/A N/A N/A N/A N/A 52,733.6/ 3:1 150,201.1 Riparian Buffer..2 N/A N/A N/A N/A N/A N/A 51,2141 1.5:1 81,41100 Sumnlvl Snurceo Min'vd'nn 17.23 1].13 PRM 0.00 0.00 0.00 0.00 111,007.67 145,611.00 DMS PEM 0.00 0.00 0.00 0.1 NIA N/A N/A N/A N/A PFO No-ipsnan Riparian 251 1.05 2.51 1.05 0.00 0.00 01 0.1 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A 3030004 PSS N. -Ripa- Riparian 000 006 0.00 006 0.00 0.00 0.1 0.1 N/A NIA N/A N/A N/A MA N/A N/A N/A N/A Eph ,a N/A N. N. N/A 0.00 0.1 N/A N/A N/A Intemlidant N/A NIA N/A N/A 30.00 60.1 N/A N/A N/A Permmim N/A N/A N/A N/A 31.00 61.1 N/A WA N/A Submml 3.63 3.61 0.00 0.00 61.00 121. Source ofM:d'8vd'on BaM (NR IYMf/'� DMS DMS (R IYMII PEM 0.00 0.00 0.00 0.1 N/A N/A N/A I\.A M1 /.A PFO NonlOparian Ripon 1053 1.49 1053 149 000 0.1 0.1 0.1 NIA NIA N/A N/A N/A N/A N'A N/.A NSA N/.A 3030005 PSS Nan -Ripen Riparian 0.06 0:16 0.06 0:16 0,00 0.00 O.IXI 0.1 N/A N/A N/A N/A N/A N/A N/A N/A N'/A N/A Ephemeral NIA N/A N/A N/A 0.00 0.1 N/A N/A N/A Incemndent N/A N/A N/A N/A 0.00 01 N/A N/A N/A Perennial N/A N/A N/A N/A 000 0.1 NIA N/A N/A 1.-1 11.24 1214 0.00 0.00 0.00 0.00 Source ofM;liBa(ion avM PEM 0.00 000 O.00 01 N/A N/A MA N/A N/A PFO N. -,H.16.56 Riparim 6.&4 16.56 6.84 0.00 0.00 0.1 0.1 N/A N. N/A N/A N/A N/A N/A N/A N/A NFA 3030006 PSS Non -Ripen Ripen 00] 2.30 00] 2.30 0.00 0,34 0.1 0.68 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A Ephemeral NIA NIA MA N/A 0.00 0.1 N/A N/A N/A Intermidem NIA N/A N/A N/A 545.00 1,090.1 N/A N/A N/A Peremdal N/A N/A N/A N/A 67.00 134.1 N/A N/A N/A Submml 15.77 25.77 0.34 0.68 611.00 1,220.00 Soureeof8Rli8vlion PRM PRM Bunk PEM 0.00 0.00 0.00 0.1 N/A N/A N/A N/A N/A PFO Non-Ripmian Zpunan 11.82 944 11.82 944 0.00 11.00 0.1 0.1 NIA N/A N/A N/A N/A N/A N/A N/A N/A N. 3040203 PSS Non-Ripazian Riparian 150 0.93 150 0.93 0.00 O.00 d1 0,1 NIA NIA N/A N/A N/A N N/A WA Ephemeral N/A N/A N/A N/A 0.00 0.1 N/A N/A N/A Inmrminem N/A N/A N/A N/A 0.00 0.1 N/A N/A N/A Perennial NIA N/A WA N/A 0.00 0.1 N/A Submml 23.69 23.69 am 0.00 0..00 0.00 Source OfMlllrnl%On PRM Compensation Worland Convereiov Permavevl WUlnnd CompenaaBov Cnmp¢vannon Riparinn Hutto Cumpcnmtion Projec[Torel (North Gro(ina) Impacts [sere) Requ'r"e°t Was (acre) Requirement lE:IJ WalerblvLdy Permanent lmpaet Regvirement(2:1) Impaet(SQFI) Requirement 154.81 154.81 O.RS 1.20 1 13.00 1 1,471.00 1 589,471.33 1,351,991.00 Attach Letters of Availability from Mitigation Banks Acceptance Letter from DMS This CREDIT entered into this _ Carolina limited 1. 2 3 4. CREDIT SALES AGREEMENT SALES AGREEMENT (hereinafter referred to as "Agreement") is made and day of , 2017 by and between Restoration Systems, LLC, a North liability company (hereinafter referred to as "Seller"), and (hereinafter referred to as "Purchaser"). PROJECT NAME: USACE PERMIT NUMBER: Atlantic Coast Pipeline (hereinafter the "Project") PURCHASER: Leslie Hartz c/o Atlantic Coast Pipeline, LLC 707 East Main Street, 191h Floor Richmond, Virginia 23219 PRICING: Number of credits Credit type Credit price Total purchase purchased (per unit) price 2.51 acres NON -Rip Wetland Mitigation $55,000 $165,0000 TOTAL $ 165,000.00 *Non Rip Wetland Credits are sold in tenth acre increments PAYMENT: 3.1 Payment: Seller agrees to accept from Purchaser payment in the amount of thirty- three thousand and 00/100 ($33,000), representing a twenty percent (20%) deposit for a four (4) month credit reservation starting from the execution of this Agreement. 3.2 Sale and Transfer: Seller's receipt of the remaining purchase price of one hundred thirty-two thousand and 00/100 ($132,000) shall result in Credits made available for immediate transfer to Purchaser by Seller. No credits shall be transferred, sold, or otherwise conveyed by Seller to Purchaser pursuant to this Agreement prior to Seller's receipt of the Total Purchase Price. CLOSING ON SALE OF CREDITS: 4.1 Once Agreement has been executed by Seller and Purchaser, Seller shall issue an invoice for the deposit amount ($33,000). Receipt of deposit amount shall be paid by Purchase to Seller by check or wire transfer within ten (10) days from date of this Agreement. 1101 Haynes St., Suite 211 • Raleigh, NC 27604 • www.restorationsystems.com • Ph 919.755.9490 • Fx 919.755.9492 4.2 Receipt of the remaining purchase price ($132,000) of the Credits shall be paid by Purchaser to Seller by check or wire transfer within four (4) months from date of this Agreement or Seller's obligation to sell the Credits to the Purchaser shall automatically terminate (provided, however, such four month period may be extended by the mutual written agreement of the Purchaser and Seller and additional deposit paid by Purchaser). S. DELIVERABLES: Compensatory Mitigation Responsibility Transfer Form provided by the U.S. Army Corps of Engineers at permit issuance. 6. LIABILITY FOR COMPENSATORY MITIGATION: In consideration for receiving the Payment from Purchaser, Seller shall assume liability for providing compensatory mitigation under the terms of this Agreement and in accordance with U.S. Army Corps of Engineers Section 404 permit and NC Department of Environmental Quality - Division of Water Resources Section 401 certification requirements. 7. COMPLETE AGREEMENT: This Agreement constitutes the full and complete agreement by and between Seller and Purchaser for the sale of compensatory mitigation credits for the Project. 8. GOVERNING LAW: This Agreement shall be construed, interpreted, and enforced solely under the laws of the State of North Carolina. 9. NONASSIGNABILITY: This Agreement may not be assigned without the consent, in writing, of the other Party. 10. AGREEMENT BINDING ON SUCCESSORS: This Agreement shall be binding upon the Parties, their legal representatives, heirs, successors, and assigns to the full extent of prevailing law. (By) (By) Leslie Hartz John Preyer Atlantic Coast Pipeline, LLC President Restoration Systems, LLC Date: Date: 1101 Haynes St., Suite 211 • Raleigh, NC 27604 • www.restorationsystems.com • Ph 919.755.9490 • Fx 919.755.9492 WETLAND AND STREAM MITIGATION CREDIT PURCHASE AGREEMENT Lower Cape Fear Umbrella Mitigation Bank This Agreement made and entered into this the 23"d of August , 2017 ("Effective Date") by and between LCFUMB, LLC ("Sponsor") and ("Purchaser") is an agreement for Sponsor to convey to Purchaser mitigation credits from Lower Cape Fear Umbrella Mitigation Bank (hereinafter defined) ("Bank") pursuant to Section 404 of the Clean Water Act, 33 U.S.C. § 1344 and for Purchaser to pay for same. In this Agreement, Sponsor agrees to convey and Purchaser agrees to purchase and pay the cost of the mitigation credits hereinafter identified ("Credits"). 1. Obligations of Sponsor. Sponsor has applied to, and received approval from, the United States Army Corps of Engineers ("Corps") and the Interagency Review Team ("IRT") to preserve, restore and enhance stream and wetland ecosystems at the mitigation sites located in Brunswick County, North Carolina and identified in the Mitigation Banking Instrument hereinafter defined ("MBI"). Sponsor, at its cost, has or will design, build and maintain stream and wetland habitat in accordance with the Final Mitigation Plan set forth in the MBI and create Credits as approved by the Corps and IRT. All risks, financial, regulatory and otherwise associated with the Bank are the responsibility of the Sponsor. Sponsor will supply the Corps with the annual monitoring reports for seven (7) years from the date of the MBI and provide confirmation that the stream and wetland restoration, enhancement and/or preservation has been completed at the end of that term. The terms "Credits", "Interagency Review Team", "Mitigation Banking Instrument", "Final Mitigation Plan" and "Lower Cape Fear Umbrella Mitigation Bank" each are defined in the MBI. 2. Obligations of Purchaser. Purchaser is required under Section 404 of the Clean Water Act to mitigate stream or wetland impacts for its project described as the Atlantic Coast Pipeline Project ("Purchaser's Project"). Purchaser will provide copies of the granted Section 404 permit from the Corps and the granted Section 401 Water Quality Certification from North Carolina Division of Water Resources ("DWR") (if applicable) ("Applicable Permits") for the Purchaser's Project to Sponsor or its designated agent as identified in Paragraph 14 hereof ("Agent") upon receipt of such Applicable Permits so that the Sponsor can execute the associated Mitigation Responsibility Transfer Form ("Credit Transfer Form") and obtain information necessary for the Sponsor's requirements for credit ledger accounting. 3. Conveyance of Credits. Provided Purchaser complies with its obligations as set forth in this Agreement, Sponsor will convey to Purchaser Credits for wetland mitigation (riparian and non -riparian) and stream mitigation to apply toward the satisfaction of the mitigation requirements of Purchaser's Section 404/401 authorizations with respect to Purchaser's Project. Upon payment in full, Sponsor will supply an executed Credit Transfer Form from Sponsor to Purchaser, to the Corps, and to DWR. This Credit Transfer Form will transfer mitigation responsibilities and liability for Purchaser's Project from the Purchaser to the Sponsor to the extent set forth in the MBI and the Applicable Permits. 1 Lower Cape Fear Umbrella Mitigation Bank Credit Purchase Agreement August 22, 2017 4. Credits Purchase Table. The wetland Credits must be purchased in one-tenth (1/10th) of an acre increments for wetland credits. The cost of the Credits purchased shall be determined according to the following Credit Purchase Table (Table 1). The payments shall be made by Purchaser to Sponsor in the amounts set forth in Table 1 below. 5. Purchase Price and Payment. The purchase price to be paid by Purchaser to Sponsor for the Credits, including the cost and the deposit, shall be in the amount as set forth in Table 1 below. The payments shall be made by Purchaser to Sponsor on the dates and in the amounts set forth in Table 1 below. A non-refundable deposit in the amount of $200,000 shall be made at the time of the execution of this agreement and no later than 14 days from the Effective Date (i.e. the deposit must be received by September 6, 2017). The deposit will be applied to the total balance due upon closing. 6. Closing. Purchaser agrees to close the purchase of the Credits and to pay the purchase price of the Credits to Sponsor within six (6) months from the Effective Date (i.e. closing required by February 23, 2018). Payment shall be made with certified funds made payable to "LCFUMB Escrow Account" and transmitted to Land Management Group, Inc. (Agent) at 3805 Wrightsville Avenue, Suite 15, Wilmington, North Carolina, 28403. Table 1: Credit Cost Table Mitigation Category Mitigation Units Requested 0.10 increment for wetlands(per Credit Price unit Total Non -Riparian Wetland 10.8 $35,995.00 $388,746.00 Riparian Wetland 1.5 $65,571.00 $98,356.50 Stream 1,284 $351.00 $450,684.00 Total $937,786.50 Non-refundable deposit due within 14 days of Effective Date $200,000.00 Balance due within 6 months from Effective Date $737,786.50 Certified funds should be made payable to "LCFUMB Escrow Account" and transmitted to Land Management Group, Inc. (Agent). 7. Entire Agreement. This Agreement constitutes the entire agreement between the parties hereto and no modification of this Agreement shall be binding unless in writing and signed by all parties hereto. The invalidity of one or more provisions of this Agreement shall not affect the validity of any other provisions hereof and this Agreement shall be construed and enforced as if such invalid provisions were not included. 8. Electronic Signature. This Agreement may be executed by one or both of the parties using an electronic signature, which the parties agree shall be binding for all purposes and shall constitute an original signature. 2 q. Paragraph Headings. Thci Paiiagrapf headings uscic in this Agraeiment are far the convaniance cif refereneci oHy and nhal:i not Ni consideireid tcumns of this Agreement. Cl. Desi�znat:ian of A cg_iw. 5Iponsor hcirabN dasignatesi as ils Agent, Land Mannement Group, Inc., 3805 Wrightsville Avenue, Suite 15, Wilmington, NC 28403. In testimonywhereof, the parties haves caused J is AgreemenNil to executad in a farm sio as to be binding onthe Effective Date. SPONSOR: PURC HASB14: BY: Prinil : Date I � i 27-- / I I Dada: K Mitigation Service ENVIRONMENTAL QUALITY August 31, 2017 Leslie Hartz Atlantic Coast Pipeline, LLC 707 E. Main St., 191h Floor Richmond, VA 23219 ROY COOPER Governor MICHAEL S. REGAN S'e.relarr Project: Atlantic Coast Pipeline Expiration of Acceptance: March 31, 2018 Counties: Northampton, Halifax, Nash, Wilson, Johnston, Sampson, Cumberland, Robeson The purpose of this letter is to notify you that the NCDEQ Division of Mitigation Services (DMS) is willing to accept payment for compensatory mitigation for impacts associated with the above -referenced project as indicated in the table below. Please note that this decision does not assure that participation in the DMS in -lieu fee mitigation program or the acceptance conditions will be approved by the permitting agencies as mitigation for project impacts. It is the responsibility of the applicant to contact permitting agencies to determine if payment to the DMS under the conditions stated below will be approved. You must also comply with all other state, federal or local government regulations or authorizations associated with the proposed activity including G.S. § 143-214.11. This acceptance is valid for six months from the date of this letter and is not transferable. If we have not received a copy of the issued 404 Permit/401 Certification within this time frame, this acceptance will expire. It is the applicant's responsibility to send copies of the permits to DMS. Once DMS receives a copy of the permit(s) an invoice will be issued based on the required mitigation in that permit and payment must be made prior to conducting the authorized work. The amount of the in -lieu fee to be paid by an applicant is calculated based upon the Fee Schedule and policies listed on the DMS website. Based on the information supplied by you in your request to use the DMS, the impacts for which you are requesting compensatory mitigation credit are summarized in the following table. The amount of mitigation required and assigned to DMS for this impact is determined by permitting agencies and may exceed the impact amounts shown below. *DMS is willing to accept payment for the mitigation required under the conditions indicated below based on credit availability. State of North Carolina I Environmental Quality I Mitigation Services 1652 Mail Service Center I Raleigh, NC 27699-1652 � 217 W. Jones Street, Suite 3000 919 707 8976 T Stream Impact Wetland Impact Buffer Buffer River Basin CU Location (feet) (acres) Impact (ft2) Impact (ft2) (8 -digit HUC) Warm Riparian Non -Riparian Zone 1 Zone 2 _ Chowan 03010204* 0 6.57 1.49* 0 0 *DMS proposes to use in-kind closed -out surplus credits from Pasquotank 03010205 for the Chowan 04 non -riparian wetland impacts. Roanoke 03010107 0 1.76 1.15 0 0 Tar -Pamlico 03020102 0 9.43 4.94 73,084 _54—,61 _0 03020101* 0 10.14* 6.21 71,494 69,590 *DMS proposes to use closed -out surplus riparian credits from Tar -Pamlico 03020102 for the riparian wetland impacts. Neuse 03020203 0 6.7 10.53 52,734 58,274 03 020201* 63 10.01 20.89* 114,544 95,141 *In accordance with the directive from the February 8, 2011 IRT meeting, non -riparian wetland impacts located in the mountains andpiedmont areas of North Carolina can be accepted as requested, but mitigated utilizing riparian wetland mitigation credits and invoiced using the riparian wetland fee schedule. _ Cape Fear 03030004 61 1.11 0 0 0 0 0 03030006* 0 9.48* 16.63 *DMS proposes to use in-kind closed -out surplus credits from Cape Fear 03030005 for the Cape Fear 03030006 riparian impacts. Lumber 03040203 0 10.37 13.32 0 0 State of North Carolina I Environmental Quality I Mitigation Services 1652 Mail Service Center I Raleigh, NC 27699-1652 � 217 W. Jones Street, Suite 3000 919 707 8976 T Upon receipt of payment, DMS will take responsibility for providing the compensatory mitigation assigned to DMS. The mitigation will be performed in accordance with the In -Lieu Fee Program instrument dated July 28, 2010 and 15A NCAC 0213 .0295 as applicable. Thank you for your interest in the DMS in -lieu fee mitigation program. If you have any questions or need additional information, please contact Kelly Williams at (919) 707-8915. Sincerely, am s. B Stanfill s t Management Supervisor cc: Stephanie Collins, agent