20150636 Ver 1_Credit Release (Ph I & II) Task 4_20171214

Water Resources
ENVIRONMENTAL QUALITY
December 14, 2017
Mike Hermann
Watershed Investments NC, LLC
1630 Weatherford Circle
Raleigh, NC 27604
ROY COOPER
Gon,nior
MICHAEL S. REGAN
seen° orll
LINDA CULPEPPER
Interim Director
DWQ Project #: 2015-0636
Orange County
Re: Neville Farms Mitigation Bank Instrument (MBI)
Neville Farms Phase II Bank Parcel Credit Release — Task 4 (partial)
Dear Mr. Hermann:
On November 2, 2017, the Division of Water Resources (DWR) received a Year 1 Monitoring
Report from Watershed Investments NC, LLC (WINC) for Phase I and Phase II of the Neville Farms
Mitigation Site. Vegetative plot data confirms that success criteria throughout both Phase 1 and
Phase II is greater than the required 260 stems/acre. Additionally, no encroachment within the
easement boundaries was observed.
On February 27, 2017, DWR received a performance bond (#CE00155800021) from Philadelphia
Indemnity Insurance Company in the amount of $44,000 and 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 bond to cover the monitoring and maintenance requirements for Fall 2018. When DWR has
received confirmation of renewal of the subject bond, the remainder 5% of this credit release will be
issued.
According to the MBI signed on January 7, 2016, the following Project Milestones for Phase I have
been partially met, and the corresponding credits shall be released:
Task/Milestones
Credit
4) Monitoring Report #1 Approved by the DWR (partial) 5%
By copy of this correspondence, DWR confirms that you have satisfied the above requirements for
the above -referenced tract. Therefore, 5% of your Jordan Lake riparian buffer Preservation credits
(0.05 x 2,330.50 ft2 = 116.53 fe) are now available for sale. Additionally, 5% of your Jordan Lake
riparian buffer Restoration credits (0.05 x 55,321.20 ft2 = 2,766.06 ft') are now available for sale
State of North Carolina I Environmental Quality I Water Resources
1617 Mail Service Center I Raleigh, North Carolina 27699-1617
919 807 6300

Neville Farms Phase II
WINC
December 14, 2017
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,
Karen Higgins, Sup isor
401 and Buffer Permitting Branch
P«(;c 2 1 2

Water Resources
ENVIRONMENTAL QUALITY
December 14, 2017
Mike Hermann
Watershed Investments NC, LLC
1630 Weatherford Circle
Raleigh, NC 27604
ROY COOPER
Governor
MICHAEL S. REGAN
secretary
LINDA CULPEPPER
Interim Director
DWQ Project #: 2015-0636
Orange County
Re: Neville Farms Mitigation Bank Instrument (MBI)
Neville Farms Phase I Bank Parcel Credit Release — Task 4 (partial)
Dear Mr. Hermann:
On November 2, 2017, the Division of Water Resources (DWR) received a Year 1 Monitoring
Report from Watershed Investments NC, LLC (WINC) for Phase I and Phase 11 of the Neville Farms
Mitigation Site. Vegetative plot data confirms that success criteria throughout both Phase 1 and
Phase II is greater than the required 260 stems/acre. Additionally, no encroachment within the
easement boundaries was observed.
On February 27, 2017, DWR received a performance bond (#CE00155800021) from Philadelphia
Indemnity Insurance Company in the amount of $44,000 and 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 bond to cover the monitoring and maintenance requirements for Fall 2018. When DWR has
received confirmation of renewal of the subject bond, the remainder 5% of this credit release will be
issued.
According to the MBI signed on January 7, 2016, the following Project Milestones for Phase I have
been partially met, and the corresponding credits shall be released:
Task/Milestones
Credit
4) Monitoring Report#1 Approved by the DWR (partial) 5%
By copy of this correspondence, DWR confirms that you have satisfied the above requirements for
the above -referenced tract. Therefore, 5% of your Jordan Lake riparian buffer Preservation credits
(0.05 x 1,742.4 ftZ = 87.12 ft) are now available for sale. Additionally, 5% of your generated
nitrogen nutrient offset credits (0.05 x 8,113.03 lb -N = 405.65 lb -N) are now available for sale.
Finally, 5% of your generated phosphorus credits (0.05 x 537.85 lb -P = 26.89 lb -P) are now
available for sale. Generated credits are credits that have not been applied to the appropriate delivery
factor.
State of North Carolina I Environmental Quality I Water Resources
1617 Mail Service Center I Raleigh, North Carolina 27699-1617
919 807 6300

Neville Farms Phase I
WINC
December 14, 2017
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 424.90 lb -P
delivered. By copy of this correspondence, 5% of your delivered nitrogen offset credits (0.05 x
7,220.59 lb -N = 361.03 lb -N) are now available for sale. Additionally, 5% of your delivered
phosphorus credits (0.05 x 424.90 lbs -P = 21.25 lbs -P) 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,
kojiv-1
Karen Higgins, Supe 's
401 and Buffer Permitting Branch
P a Y e 2 1 2