Signed MBI_Hollowell

AGREEMENT TO ESTABLISH THE HOLLOWELL MITIGATION BANKING
INSTRUMENT IN THE NEUSE RIVER BASIN FOR NUTRIENT OFFSET AND
RIPARIAN BUFFER MITIGATION CREDITS PURSUANT TO THE NEUSE
NUTRIENT MANAGEMENT STRATEGY
TABLE OF CONTENTS
I. PREAMBLE.........................................................................................................................2
II. LOCATION AND GEOGRAPHIC SERVICE AREA ....................................................... 2
III. AUTHORITIES................................................................................................................... 3
IV. ESTABLISHMENT OF BANK PARCELS........................................................................ 3
V. BANK PARCEL DEVELOPMENT PACKAGE............................................................... 5
VI. POST CONSTRUCTION DOCUMENTATION FOR EACH BANK PARCEL .............. 7
VII. CALCULATION OF MITIGATION CREDITS FOR EACH BANK PARCEL ............... 9
VIII. CREDIT RELEASE SCHEDULE.................................................................................... 11
IX. PROCEDURE FOR DEBITING AND CREDITING MITIGATION CREDITS ............ 11
X. BANK PARCEL CLOSURE............................................................................................. 13
XI. GENERAL PROVISIONS FOR EACH BANK PARCEL ............................................... 14
ATTACHMENTS
A — Division of Water Resources Authority Document
B — Rule Text 15A NCAC 02B .0240
C — Rule Text 15A NCAC 02B .0295 (Effective November 1, 2015)
D — Buffer Ledger Template
E — Nutrient Offset Ledger Template
HI

I. PREAMBLE
This Mitigation Banking Instrument ("Instrument") regarding the establishment, use,
operation, and maintenance of the Hollowell Nutrient Offset and Buffer Mitigation Bank
Parcel (`Bank Parcel") to provide Neuse Riparian Buffer mitigation credits ("Riparian Buffer
Credits") and Neuse Nutrient Strategy nutrient load reduction credits ("Nutrient Offset
Credits") is made and entered into by and among Water & Land Solutions, LLC acting as the
Bank Sponsor ("Sponsor"), and the North Carolina Department of Environmental Quality —
Division of Water Resources ("DWR"). This Instrument is in accordance with 15A NCAC
02B .0240 and the Consolidated Mitigation Rule 15A NCAC 02B .0295, which became
effective on November 1, 2015 (Attachments B and C).
The purpose of the Bank is:
A. To restore and preserve riparian vegetation adjacent to streams and/or agricultural ditches
with the intent to improve water quality within the Neuse River Basin (8 -digit HUC
03020201).
B. To convert agricultural land uses within riparian areas adjacent to streams and/or
agricultural ditches into a dense, hardwood vegetated state with the intent to significantly
reduce nutrient loadings associated with agricultural practices into streams and ditches.
C. To provide mitigation and sell any resulting Riparian Buffer Credits and/or Nutrient Offset
Credits to third parties in the Neuse River Basin (excluding the Falls Watershed), for
development (both existing and proposed) requiring such mitigation.
II. LOCATION AND GEOGRAPHIC SERVICE AREA
A. The Geographic Service Area ("GSA") is the designated area wherein a Bank can
reasonably be expected to sell Riparian Buffer Credits and/or Nutrient Offset Credits for
impacts due to development activities.
B. The GSA for this instrument is limited to the Neuse River Basin in the State of North
Carolina, United States Geological Survey ("USGS") 8 -digit Hydrologic Unit Code
("HUC") 03020201, excluding the Falls Lake Watershed.
C. Sale or transfer of Riparian Buffer Credits shall be limited to the Neuse River Basin (8 -
digit HUC 03020201), excluding the Falls Lake Watershed, unless otherwise authorized
by the DWR or delegated local government in accordance with 15A NCAC 02B .0295.
D. Sale or transfer of Nutrient Offset Credits shall be limited to Neuse River Basin (8 -digit
HUC 03020201) excluding the Falls Lake Watershed in accordance with 15A NCAC 02B
.0240.
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E. The project is comprised of four parcels of land in Wayne County, NC and is currently
used for corn and soybean production. The land use is a combination of forested and non -
forested cropland and is accessed from Stevens Mill Road in Goldsboro, NC. The project
is located at 35.35814 N and 78.11642 W.
F. Unnamed tributaries to the Neuse River are the receiving bodies of water for stormwater
runoff from this parcel. The Neuse River is classified by DWR as Nutrient Sensitive Waters
(NSW) and Water Supply IV Waters (WS -IV).
III. AUTHORITIES
A. The Bank will be used to provide Riparian Buffer Credit and Nutrient Offset Credit in
accordance with the requirements in the DWR Authority document referenced herein as
"Attachment A" and attached to this Instrument.
B. Projects eligible for utilization of the credits are those requiring authorization under the
requirements of Attachment A and any new approved North Carolina ("State") statutes and
rules for the Neuse Nutrient Sensitive Waters Management Strategy.
C. The selling of mitigation credits shall be consistent with approved North Carolina ("State")
statutes and rules for the Neuse Nutrient Sensitive Waters Management Strategy.
D. Mitigation activities proposed under this Instrument and the corresponding Bank Parcel
Development Package ("BPDP") to generate Riparian Buffer Credits and Nutrient Offset
Credits shall be consistent with State statutes and rules for the Neuse Nutrient Sensitive
Waters Management Strategy that are in place at the time a complete BPDP is submitted
to DWR.
IV. ESTABLISHMENT OF BANK PARCELS
A. In accordance with 15A NCAC 02B .0295 and 15A NCAC 02B .0240, DWR has provided
a "Site Viability Letter" for the Bank Parcel proposed under this Instrument. The Site
Viability Letter is not an approval of the site to generate mitigation credits, but is a
preliminary review of the Bank Parcel that details and confirms existing land -use
conditions, defines the riparian sites (Enhancement, Preservation, or Restoration), and
identifies features (streams, ditches, ponds, etc.) that meet general criteria to be suitable to
generate mitigation credits. A Site Viability Letter that applies to this Bank Parcel was
issued by DWR on February 5, 2019.
B. The Bank Parcel proposed for inclusion under this Instrument shall require a BPDP be
submitted to, and approved by, the DWR prior to use of the Bank Parcel for mitigation
purposes or for any sale or transfer of any associated credits. The contents of the BPDP are
provided in Section V.
C. This Bank Parcel is also part of the WLS Neuse 01 Umbrella Mitigation Bank, Hollowell
Mitigation Site, USACE Action ID #SAW -2017-00159 for stream and wetland mitigation.

This mitigation plan will be submitted to the Interagency Review Team (IRT) for review
and approval.
D. The BPDP will be placed on public notice and made available for public commenting for
15 calendar days.
E. Most of the Riparian Buffer Credits on this Bank Parcel will be generated along restored
stream channels that are proposed for stream mitigation and will be a minimum of 50 feet.
Stream Mitigation Plans will be submitted to the IRT under the WLS Neuse 01 Umbrella
Mitigation Bank, Hollowell Mitigation Site referenced in "C" in this section. Additionally,
all activities conducted within riparian buffers and adjacent riparian areas for purposes of
generating Riparian Buffer Credits and Nutrient Offset Credits will be conducted in
concurrence with stream mitigation activities. Riparian Buffer Credit may be achieved
through restoration and preservation of DWR riparian buffers as they are defined in 15A
NCAC 02B .0233, and other riparian areas as allowed per 15A NCAC 02B .0295 (n) and
(o) on the Bank Parcel. Riparian Buffer Credits are only attainable if the width of the
restoration site, enhancement site, and preservation site is at least 20 feet from top of bank.
F. The Bank Parcel is intended to provide Neuse Riparian Buffer mitigation as follows:
1. Planting hardwood trees on a Restoration Site as defined in 15A NCAC 02B
.0295(b).
2. Planting hardwood trees on a Restoration Site as defined in 15A NCAC 02B
.0295(0) adjacent to coastal headwater streams.
3. Planting hardwood trees on a Restoration Site, as defined in 15A NCAC 02B
.0295(0) adjacent to ditches.
4. Maintaining a Preservation Site as defined in 15A NCAC 02B .0295 (b) by placing
a conservation easement around riparian areas along streams and ditches as allowed
per 15A NCAC 02B .0295(0).
5. Diffuse flow will be maintained onsite to the maximum extent practicable.
G. Nutrient Offset Credit may be achieved through restoration of the riparian areas adjacent
to streams and ditches on the Bank Parcel where agriculture is the predominant land use.
The streams and ditches onsite drain directly to the Neuse River. The width of the
restoration area begins at the most landward limit of the top of bank or the rooted
herbaceous vegetation and extends landward a minimum of 50 feet and a maximum of 200
feet on all sides of the surface waters.
H. The Bank Parcel is intended to provide Nutrient Offset Credits as follows:
1. Converting agricultural land uses within riparian areas to non-agricultural land uses
by placing a conservation easement around riparian areas along streams and diches.
2. Planting hardwood trees and shrubs on a Restoration Site as defined in 15A NCAC
02B .0295 (b) adjacent to streams and ditches where agriculture has been
determined to be the predominant land -use.
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I. The total area of riparian buffer and/or nutrient offset mitigation on the Bank Parcel is
expected to be 52.86 acres.
V. BANK PARCEL DEVELOPMENT PACKAGE
A. The Hollowell Bank Parcel Development Package (BPDP) submitted under this Instrument
shall be submitted to DWR for review and must be approved by DWR prior to any
construction on the Bank Parcel. The BPDP must describe any changes that have occurred
to the site between the date of the Site Viability Letter and the date the BPDP is submitted
to DWR. The BPDP shall include detailed information consistent with the sections below
concerning; 1) site location (8 -digit HUC is required); 2) existing conditions with current
photos; 3) proposed buffer mitigation and nutrient offset activities including a detailed
vegetation plan; 4) monitoring and maintenance plans; 5) financial assurances; 6)
associated buffer mitigation/nutrient credit calculations, which shall include credit
generation, service area, and accounting as appropriate for each regulatory authority; 7)
stream buffer determination letter from DWR, and 8) Site Viability Letter from DWR; 9)
a figure depicting the proposed stream and wetland mitigation areas; and 10) service area
figure for each mitigation type proposed under this Instrument.
B. The Sponsor will obtain all applicable federal, state, and local documentation, permits, or
authorizations needed to construct and maintain the Bank Parcel. This Instrument does not
qualify as, or substitute for, such documentation, permit, or authorization.
C. Any restoration activities or proposed construction within the riparian buffers and other
riparian areas on the Bank Parcel to produce Riparian Buffer Credit or Nutrient Offset
Credit must be approved by DWR by way of a written approval of the BPDP prior to
implementation. The failure of the Sponsor to comply with this requirement may result in
a revised or reduced credit release schedule for that specific mitigation site. All restoration
and enhancement activities must be performed in concurrence with any stream or wetland
mitigation activities and not before.
D. Requests for deviation from the approved BPDP must be submitted to DWR in writing.
Written approval from the DWR must be received prior to implementing any deviation
from the approved BPDP.
Property Disposition & Long -Term Management for Each Bank Parcel
E. Prior to the release of any credits, the Sponsor shall acquire a permanent conservation
easement at the Wayne County Register of Deed's office that is sufficient to ensure
protection, operation and maintenance of restored riparian buffers and other riparian areas
for the duration specified in the approved BPDP.
F. The form of the conservation easement shall be consistent with the standards employed by
the State of North Carolina in the protection of restored riparian buffers and riparian areas
and shall be approved by the DWR and United States Army Corps of Engineers (USACE)
prior to the release of any credits.

G. The Sponsor shall not grant additional easements, right of ways, or any other property
interest in or to the project areas, without prior approval from the DWR and the USACE.
H. The Sponsor agrees to transfer or assign the conservation easement and its interests in
perpetuity to a qualified holder under NC General Statute ("GS") 121-34 et seq. and 170(h)
of the Internal Revenue Code prior to the submittal of the Year 4 Monitoring Report. The
holder shall be a land trust or stewardship program that will hold and enforce the
conservation easement and the interests in perpetuity. The Sponsor shall choose a land trust
or stewardship program that is accredited by the Land Trust Accreditation Commission
and/or has been approved by DWR prior to the end of the fourth year monitoring period.
A land trust must be certified under 501(c)(3) of the Internal Revenue Code.
I. In the event the Sponsor is also the owner of the underlying fee interest in the property, the
conveyance of the conservation easement to a land trust or stewardship fund must be
arranged at the outset of the approved BPDP.
Financial Assurances for Each Bank Parcel
J. Following approval of the BPDP, the Sponsor shall provide Performance/Maintenance
Bonds from a surety company that is rated no less than an "A" as rated by A.M. Best, to
construct the sites according to the approved BPDPs. It is the Sponsor's responsibility to
confirm that the surety company is rated no less than an "A-" with each annual bond
renewal.
K. The amount of each Performance Bond shall be 100% of the estimated cost for
implementation of the mitigation activities of the Bank Parcel as described in the approved
BPDP. No bond shall be less than $150,000.00 to cover construction costs.
L. Alternatively, in lieu of posting Performance Bonds, the Sponsor may elect to construct
the project prior to the first credit release.
M. Once DWR has released all credits for completion of all the items listed below, then the
Bank Sponsor will be released from its performance obligations under the performance
bond required in Item J and K of this section:
1. Instrument and BPDP approved by DWR, Conservation Easement recorded,
Financial Assurance posted;
2. Mitigation Site Earthwork and Planting and Installation of Monitoring Devices
Completed;
3. As -Built Report as described in Section VI has been received by DWR; and
4. DWR has submitted a written approval of the As -Built Report
N. To comply with this section, DWR must be the Obligee on all performance bonds.

VI. POST CONSTRUCTION DOCUMENTATION FOR EACH BANK PARCEL
As -Built Report
A. The Sponsor agrees to perform all necessary work, in accordance with the provisions of
this Instrument and corresponding BPDP, to establish, maintain, and monitor Neuse
Riparian Buffers or other riparian areas until Item B (1) and (2) of Section X have been
satisfied.
B. When all stream and wetland mitigation activities have commenced, the Sponsor will
submit an as -built plan and report for the Bank Parcel within 30 calendar days after
completing the establishment of the riparian buffer mitigation and nutrient offset areas. The
as -built report will describe any deviation from the approved BPDP and will document all
the following:
1. Buffer restoration and planting details, invasive species control, monitoring device
locations, vegetation plot locations, photo point locations, surface and groundwater
elevations, as appropriate.
2. Provide confirmation that the construction of all stream and wetland mitigation
activities have been completed and all applicable permits have been obtained by the
Sponsor.
3. Boundary Survey of the conservation easement area, signed and sealed by a
licensed surveyor, including an enumeration of the final mitigation areas for
riparian buffer and/or nutrient offset mitigation credits in both square feet and acres.
4. As -built map of the mitigation areas showing where riparian restoration and
preservation were performed and any deviations to the Bank Parcel from what was
approved in the BPDP.
5. As -Built map of the stream and/or wetland mitigation areas.
6. Aerial map of the mitigation area that was included in the approved BPDP.
Financial Assurance for each Bank Parcel
C. After completion of the restoration/construction a separate Performance/Maintenance
Bond will be secured for 100% of the estimated cost to implement the monitoring and
maintenance plan as described in the approved BPDP and As -Built Report applicable for
the site. The Bond must be from a surety company that is rated no less than an "A-" as
rated by A.M. Best, and it is the Sponsor's responsibility to confirm that the surety
company is rated no less than an "A-" with each annual bond renewal.
D. A Performance/Maintenance Bond shall be secured each year for a minimum of five years,
and until DWR has released all mitigation credits to the Bank Sponsor. Upon written
approval by DWR, the bond may be lowered each year based on the adjusted cost to
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complete the monitoring. No bond shall be less than $100,000 initially, to cover monitoring
and maintenance costs.
E. Once DWR has released all credits for completion of Tasks 1-9 according to the credit
release schedule in Section VIII, the Bank Sponsor can be released from its performance
obligations under the performance bond required in "C -D" of this Section.
F. To comply with this section, DWR must be the Obligee on all performance bonds.
Monitoring and Maintenance Reports
G. The Sponsor shall monitor the Bank Parcel as described in the BPDP until such time as
DWR determines that the performance standards described below have been met. The
monitoring period shall be a minimum of five consecutive years.
H. Performance Standards for Vegetation: Native hardwood trees or native hardwood tree
and shrub species should be planted at a density sufficient to provide 260 stems per acre
after five years. A minimum of four (4) native hardwood trees or four (4) native hardwood
tree and shrub species must be planted. No one species shall be greater than 50% of the
planted stems. A list of species for planting will be detailed in the BPDP for approval.
Native hardwood tree volunteer species may be included to meet performance standards as
determined by the DWR.
I. A "stem" means a woody seedling, sapling, shrub or tree, no less than 10 centimeters in
height.
J. If the performance standards of the vegetation are not met, supplemental plantings may be
required. Supplemental plantings will be utilized until the required densities have been
achieved and maintained for five years. Bank Parcel maintenance, such as ensuring diffuse
flow, managing invasive species, and pest control will be included in the BPDP.
K. Monitorin! Reports for Riparian Buffer Credit or Nutrient Offset Credit: Reporting
criteria of the vegetation shall be based on the Carolina Vegetation Survey (CVS) — EEP
Protocol for Recording Vegetation Level 2 Plot Sampling only version 4.0 or any updated
versions of this protocol in place on the date of acceptance of the BPDP. The Sponsor shall
submit to the DWR an annual monitoring report no later than December 31 of each year
for a minimum of five consecutive years after the first full growing season. This report will
describe the conditions of each Bank Parcel, including an evaluation of the performance
standards of the vegetation contained within the approved BPDP. Reports shall contain the
following:
1. A U.S. Geological Survey map showing location of the Bank Parcel;
2. A detailed narrative with supporting photos summarizing the condition of the Bank
Parcel along with any maintenance or remediation performed that year;
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3. A map, survey, or other figure showing locations of sampling plots, permanent
photo points, location of transects, etc.;
4. Monitoring data, including specific vegetative counts showing that the trees or tree
and shrub species planted are meeting performance standards and updated
photographs;
5. A copy of the most recent Bank credit/debit ledgers;
6. Corresponding verification letters from designated local governments upon request;
7. Corresponding Mitigation Transfer Certificates upon request; and
8. Proof of performance bond renewal to cover the next monitoring year (if
applicable).
Contingency Plans/Remedial Actions
L. In the event the Bank Parcel fails to achieve the performance criteria described in this
Instrument and the approved BPDP, the Bank Sponsor shall develop necessary contingency
plans in coordination with the DWR and implement appropriate remedial actions for the
Bank Parcel and the Bank. Depending on the degree of remedial actions required, the DWR
may modify the monitoring period.
VII. CALCULATION OF MITIGATION CREDITS FOR EACH BANK PARCEL
Riparian Buffer Credits
A. All Riparian Buffer Credits shall be determined based on the ratios and percentages
provided in 15A NCAC 02B .0295 (m) and (n).
B. Riparian buffer restoration on the Bank Parcel, as described in 15A NCAC 02B .0295 (n)
and (o) and defined in 15A NCAC 02B .0295 (b) that is performed on agriculture lands
within the Bank Parcel, may be used for either Riparian Buffer Credit or Nutrient Offset
Credit, but not both.
C. Riparian buffer restoration on the Bank Parcel, as described in 15A NCAC 02B .0295 (o)
(2) that is performed on agriculture lands within the Bank Parcel, may only be used for
Riparian Buffer Credit.
D. Riparian buffer preservation on the Bank Parcel, as described in 15A NCAC 02B .0295 (o)
and defined in 15A NCAC 02B .0295 (b), can only be used for Riparian Buffer Credit.
E. Riparian Buffer Credit is defined as one (1) buffer credit per one square foot or 43,560
buffer credits per one acre.
10,

F. Pursuant to 15A NCAC 02B .0295 (1)(6)(B), "Buffer mitigation credit shall not be
generated within wetlands that provide mitigation credit required by 15A NCAC 02H
.0506".
Nutrient Offset Credits
G. All Nutrient Offset Credits will be determined by applying the applicable ratio as provided
in 15A NCAC O2B .0295 (m) for a Restoration Site. All riparian areas proposed for
Nutrient Offset Credits must be a minimum of fifty (50) feet from the top of the stream or
ditch banks on land noted in a Site Viability Letter as agriculture.
H. Nutrient Offset Credits cannot be achieved through the preservation activities performed
on this Bank Parcel.
I. Nutrient Abatement of Restored Riparian Area/Buffers: The Sponsor and DWR agree to
the following:
1. The pounds of nitrogen offset per acre of restored riparian areas/buffers shall be
2,273.02 pounds per acre.
J. The Sponsor and DWR agree the methodology and calculations for determining nitrogen
reduction, associated with restoration of riparian areas as described in Section IN of this
Instrument, shall be fixed as part of the approval of this Instrument, with the fixed amount
not changing during the Bank Parcel Development or credit release schedule for each Bank
Parcel unless the viability letter for that Bank Parcel has expired.
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VIIL CREDIT RELEASE SCHEDULE
A. Upon submittal of all appropriate documentation by the Sponsor, and subsequent approval
by DWR, it is agreed that the mitigation credits associated with the Bank Parcel will
become available for sale to a third party in accordance with the Credit Release Schedule
below.
Table 1 - Credit Release Schedule for Riparian Buffer and Nutrient Offset Credits
% Credit
Release
within
% Credit
Coastal
Available for
Headwater
Task
Project Milestone
Sale
Areas
Instrument and BPDP Approved by DWR, Conservation Easement
Recorded* and Financial Assurance Posted, Stream & Wetland
1
Mitigation Plan Submitted to the IRT i a licable
20
None
Mitigation Site Earthwork, Planting and Installation of Monitoring
2
Devices Completed and all Applicable Permits Obtained
20
None
Monitoring Financial Assurance Posted and Approval of As -Built
3
Report
10
50
Monitoring Report #1 Approved by the DWR** & financial
4
assurance renewed
10
10
Monitoring Report #2 Approved by the DWR** & financial
5
assurance renewed
10
10
Monitoring Report #3 Approved by the DWR** & financial
6
assurance renewed
10
10
Item B (1) of Section X in this Instrument has been completed and
7
approved by DWR.
5
5
No remaining credits will be released until the conservation easement has been assigned to an approved
land trust or stewardship
Monitoring Report #4 Approved by the DWR** & financial
8
assurance renewed
5
5
Monitoring Report #5 Approved by the DWR** and final site visit
9
by DWR has been conducted
10
10
Total
100%
100%
* For specification, please see Section V in this Instrument
* * DWR Approval provided upon a determination that the site is meeting success criteria contained within the
approved BPDP
B. DWR may modify credit release schedule based on the information submitted or the order
in which required information is received. DWR will notify the Sponsor of any
modification to the credit release schedule.
IX. PROCEDURE FOR DEBITING AND CREDITING MITIGATION CREDITS
Credit Ledizers
A. The Bank Sponsor shall maintain a credit ledger for each mitigation type for the Bank
Parcel under this Instrument (Riparian Buffer Restoration Credits, Riparian Buffer
Preservation Credits & Coastal Headwater Restoration Riparian Buffer Credits, and
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Nitrogen Nutrient Offset Credits). Credit ledgers shall provide the accounting for buffer
mitigation credits in square feet and acres, and Nutrient Offset Credits in pounds and acres.
B. Each credit ledger shall be submitted on a separate 8 t/2 in X l 1 in spreadsheet with legible
font style and font size. All ledgers shall be submitted using the templates provided in
Attachments D and E of this Instrument or any updated versions to these templates as
provided by DWR.
Credit Processinlz
C. Riparian Buffer Credits generated on this Bank Parcel will be used to provide mitigation
for authorized riparian buffer impacts within the Neuse River Basin, excluding the Falls
Watershed, according to 15A NCAC 02B .0295 (g).
D. Nutrient Offset Credits generated on the Bank Parcel will be used to offset nitrogen nutrient
loads within the 03020201 HUC of the Neuse River Basin, excluding Falls Lake
Watershed, in accordance with 15A NCAC 02B .0240.
E. Available mitigation credits (credits that have been released by DWR but not sold by the
Sponsor) that are generated from riparian buffer restoration, as defined in 15A NCAC 02B
.0295 (b) and described in 15A NCAC 02B .0295 (n) and 15A NCAC 02B .0295 (o) on
agriculture land can be converted and transferred from Riparian Buffer Credits to Nutrient
Offset Credits and from Nutrient Offset Credits back to Riparian Buffer Credits upon
written approval from DWR.
F. Riparian Restoration credits generated along outer Coastal Plain Headwater stream
mitigation sites are not transferrable into nutrient offset credits.
G. Riparian Preservation credits generated on this Bank Parcel are not transferrable into
nutrient offset credits.
H. The Bank Sponsor shall obtain verification of nutrient offset need from a designated local
government in the Neuse River Basin outside of the Falls Watershed, prior to debiting
Nutrient Offset Credits from the Bank Parcel.
I. The Bank Sponsor shall obtain verification of riparian buffer mitigation required from a
delegated local government in the Neuse River Basin outside of the Falls Watershed or
DWR prior to debiting Riparian Buffer Credits from the Bank Parcel.
All credit and debit transactions under this Instrument shall be accurately depicted in the
credit ledgers. The Bank Sponsor shall provide DWR up-to-date credit ledgers
electronically for each Bank Parcel by the tenth (10th) of each month. At a minimum and
only upon request, DWR shall receive a hard copy of up-to-date credit ledgers along with
the corresponding Mitigation Credit Transfer Certificates ("Certificate") and all
corresponding letters from the designated local governments or DWR where applicable,
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once a year. Notification of all credit sales shall be provided to DWR until all credits that
have been released have been sold.
Mitigation Credit Transfer Certificates
K. All credit sales will include a Mitigation Credit Transfer Certificate ("Certificate") that is
required to be provided to the buyer of Riparian Buffer and/or Nutrient Offset credits, that
will include, at a minimum, the following information:
1. Bank Details: (1) sponsor, (2) bank parcel name as it appears in this Instrument, (3)
DWR project number for the BPDP.
2. Credit Details: (1) date of receipt, (2) identify if full or partial payment, (3 — when
applicable) amount of nitrogen credits purchased in pounds and confirmation from
the designated local government of the amount required, and (4 — when applicable)
amount of Riparian Buffer Credits purchased in square feet and the confirmation
from DWR or the local government of the amount required.
3. Project Details: (1) project name as it appears on DWR or local government permits
and/or certifications, (2) 8 -digit HUC, (3) river basin, (4) nutrient strategy
applicable to the project, (5 — when applicable) designated local government
requiring Nutrient Offset Credits, and/or (6) DWR project authorization/ID number
or delegated local government requiring Riparian Buffer Credits for this project.
L. If the DWR determines that the Bank is operating at a deficit (e.g. the Sponsor is closing
on sales and/or transferring credit that is not available), or the Bank is selling credits out of
compliance with statutes, rules or this Agreement, the sale/transfer of credits will
immediately cease, and the DWR, in consultation with the Sponsor, will determine what
remedial actions are necessary.
X. BANK PARCEL CLOSURE
A. Bank Parcel Closure shall be identified as the event when DWR relieves the Sponsor of all
of its responsibilities to the Bank Parcel and there are no mitigation credits left to sell.
DWR must acknowledge Bank Parcel Closure in writing directly to the Sponsor.
B. Bank Parcel Closure shall commence only after all of the following events have occurred:
1. Transfer or assign the conservation easement and all of its interests, in perpetuity,
to a land trust or stewardship program as described in Section V of this Instrument.
2. All five years of monitoring completed and all monitoring reports submitted and
approved by DWR.
3. All credits have been released and debited and updated ledgers showing zero credit
balances have been submitted and approved by DWR.
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XI. GENERAL PROVISIONS FOR EACH BANK PARCEL
A. Upon the presentation of proper credentials, and during normal business hours, the Sponsor
and the landowner shall grant permission to the Director of DWR, or an authorized
representative of the Director of DWR, to enter the property containing the Bank Parcel.
B. Amendments: This Banking Instrument may be amended or modified only with written
approval of all signatory parties, including the USACE if it is applicable to the amendment.
C. Any transfer of the Sponsor's rights or obligations outlined in this Instrument or any other
agreement referenced in this Instrument to a third party must be approved by DWR prior
to the transfer.
D. Force Majeure: After 100% of all of the credits have been released according to the credit
release schedule in Section VIII and confirmation has been received by the DWR that the
Conservation Easement has been successfully assigned in compliance with Item H of
Section V, the Sponsor will not be responsible for Bank failure that is attributed to natural
catastrophes including but not limited to flood, drought, disease, regional pest infestation,
etc. that are beyond the control of the Sponsor.
E. However, if an event occurs before 100% of all the credits have been released according to the
credit release schedule in Section VIII, the Sponsor shall take remedial action to restore the
property to its condition prior to the event, in a manner sufficient to provide adequate
mitigation to cover credits that were sold prior to the occurrence of the event. Such remedial
action shall be taken by the Sponsor only to the extent necessary and appropriate, as
determined by DWR and the Sponsor.
DWR must concur in writing that a force majeure event has occurred for this provision to apply.
F. Oversight: Actions taken by DWR may include, but are not limited to, the following:
1. Site visits,
2. Issuance of Site Viability Letters,
3. BPDP review and approval of items listed in Section V of this Instrument,
4. As -Built Report review and approval of items listed in Section VI of this
Instrument,
5. Monitoring Report review and approval of items listed in Section VI of this
Instrument,
6. Credit Ledger review and approval of items listed in Section IX of this Instrument,
7. Certificate review of items listed in Section IX of this Instrument and cross analysis
to credit ledgers and,
8. Information requests, file reviews and audits
Reports, ledgers, files and other information shall be made available to DWR upon request, unless
otherwise specified in this or any other document.
14

G. Validity of the Banking Instrument: This Instrument will become valid on the date of the
last party's signature.
H. Specific Language of Banking Instrument Shall Be Controlling: To the extent that specific
language in this document changes, modifies, or deletes terms and conditions contained in
those documents that are incorporated into the Instrument by reference, and that are not
legally binding, the specific language within the Instrument shall be controlling.
I. Any disputes over decisions regarding this Instrument, shall be referred to the Director of
DWR for a decision. The Director's decision is subject to review as provided in Articles 3
and 4 of G.S. 150B.
This Agreement shall be binding upon the parties and is entered into knowingly,
intelligently, and voluntarily.
K. Notices: All notices and other communications which may be or are required to be given
or made by any party to the other shall be in writing and shall be deemed to have been
properly given and received on the date delivered in person or deposited in the United
States mail, registered or certified, return receipt requested, to the addresses set out below,
or at such other addresses as specified by written notice delivered in accordance herewith.
If to Bank Sponsor: Water & Land Solutions, LLC
Attention: Mr. Adam McIntyre
7721 Six Forks Road, Suite 130
Raleigh, North Carolina 27615
If to DWR: NC Division of Water Resources — 401 & Buffer Permitting Branch
Attn: Nutrient Offset Banking Coordinator
1617 Mail Service Center
Raleigh, NC 27699-1617
L. Applicable Law: This Agreement shall be construed under the laws of the State of North
Carolina.
15

WATER & LAND SOLUTIONS, LLC
By: Adam McIntyre (Print)
(Signature)
Title:
Date: 3- t S' / 7
NORTH CAROLINA DEPARTMENT OF ENVIRONMENTAL QUALITY -DIVISION OF
WATER RESOURCES
By: pe n ner- (Print)
l/�-- (Signature)
Title: �V e� �o ✓
Date: Li
16

Attachment A — Division of Water Resources
Authority Document

Updated
Nutrient Offset Program & Buffer Mitigation 1/24/17
Program Authorities for MBI
ATTACHMENT A
Authorities pertaining to the Hollowell Mitigation Banking Instrument
All Basins
General Statutes:
G.S. §143-214.11 Ecosystem Enhancement Program
G.S. §143-214.26 Nutrient Offset Credits
G.S. §143-214.20-24 Riparian Buffer Protection Program
G.S. § 143-214.7 Stormwater runoff rules and programs
G.S. § 143-215.8B Basinwide Water Quality Management Plans
Secsion Law-,
S.L. 2015-246
S.L. 2015-149
S.L. 2014-90
S.L. 2014-120
S.L. 2013-413
S.L. 2013-121
S.L. 2013-265
S.L. 2012-200 (Amendment to G.S. §143-214.23 and G.S. §143-215.1)
S.L. 2011-343 (Amendment to G.S. §143-214.11)
S.L. 2009- 337 (Amendment to G.S. §143-214.11)
Administrative Rules:
15A NCAC 02B .0202 Definitions
15A NCAC 02B.0223 Nutrient Sensitive Waters
15A NCAC 02B .0237 Best Management Practice Cost -Effectiveness Rate
15A NCAC 02B .0240 Nutrient Offset Payments
15A NCAC 02B .0295 Mitigation Program Requirements for Protection and Maintenance of Riparian Buffers
Neuse River Basin Buffer and Neuse Nutrient Strategy
Session Laws
S.L. 2011-394
S.L. 1998-221 (Part I)
S.L. 1995-572
Administrative Rules:
15A NCAC 02B .0232 Basin Nutrient Reduction Goal
15A NCAC 02B .0233 Protection and Maintenance of Existing Riparian Buffers
15A NCAC 02B .0235 Basinwide Stormwater Requirements
15A NCAC 02B .0236 Agricultural Nitrogen Loading Reduction
15A NCAC 02B .0238 Agricultural Nitrogen Reduction Strategy
15A NCAC 02B .0239 Nutrient Management
15A NCAC 02B .0241 Delegation of Authority for the Protection and Maintenance of Existing Riparian Buffers