20150636 Ver 1_Credit Release (Ph I & II) Task 5 final_20181205

ROY COOPER
Governor
MICHAEL S. REGAN
Secretary
LINDA CULPEPPER
Interim Director
Mike Hermann
Watershed Investments NC, LLC
1630 Weatherford Circle
Raleigh, NC 27604
NORTH CAROLINA
Environmental Quality
December 5, 2018
DWQ Project #: 2015-0636
Orange County
Re: Neville Farms Mitigation Bank Instrument (MBI)
Neville Farms Phase II Bank Parcel Credit Release — Task 5 (final)
Dear Mr. Hermann:
On November 19, 2018, the Division of Water Resources (DWR) issued a 5% credit release for
partial completion of Task 5. The release was issued for approval of the Year 2 Monitoring Report
submitted by Watershed Investments NC, LLC (WINC) for the Neville Farms Phase II Mitigation
Bank. It was noted in the credit release letter that the remaining 5% of the credit release would be
issued upon receipt of bond renewal.
On December 4, 2018, DWR received a continuation certificate for performance bond
(#CE00155800021) issued to WINC to cover monitoring and maintenance at the subject site. The
term of this bond applies through February 21, 2020. Therefore, WINC is required to renew the
performance bond prior to February 21, 2020 and is required to renew the bond annually for at least 3
more years. Future credit releases will be dependent on both the renewal of this performance bond
and the approval of the annual monitoring reports.
According to the MBI signed on January 7, 2016, the following Project Milestones for Phase II have
been fully met, and the corresponding credits shall be released:
Task/Milestones
5) Monitoring Report #2: Approved by the DWR (final)
Credit
5%
By copy of this correspondence, DWR confirms that you have fully 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 ft2) are now available to sell. Additionally, 5% of your Jordan
Lake riparian buffer Restoration credits (0.05 x 55,321.20 ft2 = 2,766.06 ft2) are now available to
sell.
T� � E
&E.W�
North Carolina Department of Environmental Quality I Division of Water Resources
512 North Salisbury Street 1 1611 Mail Service Center I Raleigh, North Carolina 27699-1611
919.707.9000

Neville Farms Phase II
Watershed Investments NC
December 5, 2018
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, Supervise
401 and Buffer Permitting Branch
Page 212

ROY COOPER
Governor
MICHAEL S. REGAN
Secretary
LINDA CULPEPPER
Interim Director
NORTH CAROLINA
Environmental Quality
December 5, 2018
DWQ Project #: 2015-0636
Orange County
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 5 (final)
Dear Mr. Hermann:
On November 19, 2018, the Division of Water Resources (DWR) issued a 5% credit release for
partial completion of Task 5. The release was issued for approval of the Year 2 Monitoring Report
submitted by Watershed Investments NC, LLC (WINC) for the Neville Farms Phase 1 Mitigation
Bank. It was noted in the credit release letter that the remaining 5% of the credit release would be
issued upon receipt of bond renewal.
On December 4, 2018, DWR received a continuation certificate for performance bond
(#CE00155800021) issued to WINC to cover monitoring and maintenance at the subject site. The
term of this bond applies through February 21, 2020. Therefore, WINC is required to renew the
performance bond prior to February 21, 2020 and is required to renew the bond annually for at least 3
more years. Future credit releases will be dependent on both the renewal of this performance bond
and the approval of the annual monitoring reports.
According to the MBI signed on January 7, 2016, the following Project Milestones for Phase I have
been fully met, and the corresponding credits shall be released:
Task/Milestones
5) Monitoring Report #2: Approved by the DWR (final)
Credit
5%
By copy of this correspondence, DWR confirms that you have fully 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 ft2 = 87.12 ft2) 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 to
sell. Finally, 5% of your generated phosphorus credits (0.05 x 537.85 Ib -P = 26.89 lb -P) are now
aogrri caaa� D E
oquroront oi6MranmanW OuNry�
North Carolina Department of Environmental Quality I Division of Water Resources
512 North Salisbury Street 1 1611 Mail Service Center I Raleigh, North Carolina 27699-1611
919.707.9000

Neville Farms Phase I
Watershed Investments NC
December 5, 2018
available to sell. 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 424.90 lb -P
delivered. By copy of this correspondence, 5% of your delivered nitrogen offset credits (0.05 x
7,220.591b -N = 361.03 lb -N) are now available to sell. Additionally, 5% of your delivered
phosphorus credits (0.05 x 424.90 lbs -P = 21.25 lbs -P) are now available to sell. 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,
Karen Higgins, Supervis
401 and Buffer Permitting Branch
F'e`e 212