20160847 Ver 3_MBI comments by DWR_20190418

Strickland, Bev
From: Merritt, Katie
Sent: Thursday, April 18, 2019 12:56 PM
To: 'Jamey McEachran'
Subject: RE: [External] RE: Cloud & Banner BPDP review
Attachments: Attachment A - Cloud-RES.pdf, RES CLOUD AND BANNER MBI_dwrEdits.docx
Hey Jamey,
I have finalized my preliminary review of the Cloud & Banner MBI. I have attached my comments/edits in track changes
mode to expedite the review. Let me know if you have any questions. I have also provided the Attachment A document
for you to insert into the final draft of the MBI. When your final draft has been approved, please get Brad to sign the
signature page (docusign is not accepted at this time) and upload the final draft. We will post the MBI & BPDP on public
notice at the same time when they are ready.
Thanks,
Katie
From: Jamey McEachran <[e-mail]>
Sent: Thursday, April 18, 2019 11:49 AM
To: Merritt, Katie <[e-mail]>
Subject: RE: [External] RE: Cloud & Banner BPDP review
External email. Do not click links or open attachments unless you verify. Send all suspicious email as an attachment to
[e-mail]
Hi Katei,
Here is the word doc. Please let me know if you need anything else.
Thank you!
Jamey
Jamey Redding McEachran
Ecology Team Lead
RES I res.us
Mobile: [phone]
From: Merritt, Katie <[e-mail]>
Sent: Thursday, April 18, 2019 11:47 AM
To: Jamey McEachran <[e-mail]>
Subject: [EXTERNAL] RE: [External] RE: Cloud & Banner BPDP review
Hey Jamey,
I just finished my review of the MBI. If you can send me the word doc of your MBI for Cloud & Banner I can just make my
edits to that in Track changes to expedite the review.
Thank you,
Katie

From: Jamey McEachran <[e-mail]>
Sent: Thursday, April 18, 2019 8:50 AM
To: Merritt, Katie <[e-mail]>
Subject: [External] RE: Cloud & Banner BPDP review
External email. Do not click links or open attachments unless you verify. Send all suspicious email as an attachment to
Hi Katie,
Thank you so much for the comments. I will probably send you an email or call you to talk through some of the
comments once I have a chance to go over them with our team, probably next week sometime.
One quick question, one of the comments mentioned the MBI and making it the same as in there. You have not sent the
MBI review or comments just yet right? Or did I miss it in my email?
Thanks,
Jamey
Jamey Redding McEachran
Ecology Team Lead
RES I res.us
Mobile: [phone]
From: Merritt, Katie <[e-mail]>
Sent: Wednesday, April 17, 2019 4:47 PM
To: Jamey McEachran <[e-mail]>
Subject: [EXTERNAL] Cloud & Banner BPDP review
Hey Jamey,
I have finalized my preliminary review of the draft Cloud & Banner BPDP received on March 6, 2019. My comments are
provided in the attached pdf. There are a few places where I'm asking questions in need of a response. Therefore, please
send me an email or give me a call to respond to those. I appreciate it.
Thanks
Katie
"please note my phone number has changed"
Katie Merritt
Nutrient Offset & Buffer Banking Coordinator
401 & Buffer Permitting Unit
North Carolina Department of Environmental Quality
Office: 919-707-3637
Work Cell: 919-500-0683
Website: http://Portal.ncdenr.org/web/wq/401bufferpermitting
512 N. Salisbury Street, Raleigh, NC 27620
1617 Mail Service Center, Raleigh, NC 27699-1617
Email correspondence to and from this address is subject to the
North Carolina Public Records Law and may be disclosed to third parties.

AGREEMENT TO ESTABLISH THE RES CLOUD AND BANNER MITIGATION
BANKING INSTRUMENT IN THE HAW RIVER SUBWATERSHED FORNUTRIENT - - - Deleted: RIPARFAN BUFFER AND
OFFSET AND RIPARIAN BUFFER MITIGATION CREDITS PURSUANT TO THE , - Commented [MK1]: we don't' refer to nutrient offsets as
-
JORDAN LAKE NUTRIENT MANAGEMENT - - STRATEGY
- - - - - - - - - - - - - - - - ` mitigation" so I changed the wording
TABLE OF CONTENTS
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 THE BANK PARCEL..................7
VII.
CALCULATION OF MITIGATION CREDITS FOR THE BANK PARCEL...................9
VIII.
CREDIT RELEASE SCHEDULE........................................................................................12
IX.
PROCEDURE FOR DEBITING AND CREDITING MITIGATION CREDITS ............13
X.
BANK PARCEL CLOSURE................................................................................................14
XI.
GENERAL PROVISIONS FOR THE BANK PARCEL....................................................15
ATTACHMENTS
A —Division of Water Resources Authority IDocumenl[ ----------------------------- Commented [MK2]: DWB will provide this documentforyou
B —Delivered Credit Yield Table for Jordan Subwatersheds dated December 20, 2012 for the final draft
C — Rule Text 15 A NCAC 02B .0240
D —Rule Text 15A NCAC 02B .0295 (Effective November 1, 2015)
E — Jordan Lake Buffer Ledger Template
F — Jordan Lake Nutrient Offset Ledger Template

I. PREAMBLE
This RES Cloud and Banner Mitigation Banking Instrument ("Instrument") regarding the
establishment, use, operation, and maintenance of one (1) Nutrient Offset and Buffer
Mitigation Bank Parcel ("Bank Parcel"), identified in Section II, is to provide Jordan Lake
Riparian Buffer mitigation credits ("Riparian Buffer Credits") and Jordan Lake Nutrient
Strategy nutrient load reduction credit ("Nutrient Offset Credits") is made and entered into by
and among Environmental Banc and Exchange ("EBX, 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 C and D). This instrument is for the bank site known as Cloud and
Banner.
The purpose of this 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 Haw River Subwatershed of the Jordan
Lake Watershed.
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 Haw River Subwatershed of the Jordan Lake 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 Haw River Subwatershed of Jordan Lake
watershed as defined in rule 15A NCAC 0213 .02621, , Deleted: in the state of North Carolina, United states
Geological Survey ("USGS') 8 -digit Hydrologic Unit Code
("AUC') 03030002
C. Sale or transfer of Riparian Buffer Credits shall be limited to Haw River Subwatershed of
the Jordan Lake watershed, as defined in rule 15A NCAC 02B .0262, unless otherwise
authorized by the DWR or delegated local government in accordance with 15A NCAC 02B
.0295.
D. Sale or transfer of delivered Nutrient Offset Credits shall also be limited to Haw River
Subwatershed of the Jordan Lake watershed, as defined in rule 15A NCAC 02B .0262 and
in accordance with 15A NCAC 02B .0240.

E. The following table provides site-specific details of the Bank Parcel proposed under this
Instrument, which is within the Haw River Subwatershed of the Jordan Lake watershed (8 -
digit HUC 03030002);
Table 1.0 — Site-specific Details
Bank Parcel
14 -Digit USGS
DWR
Project
Named
Primary Land
Name
County
HUC
Project #
Location
Receiving
Use/s
Stream
Hayfield
Cloud and
Banner
Alamance
03030002030070
J016- -
0847v
36.143777,
-_79_.2_7_15_35
-Back--reek
(agriculture,
mature _
bottomland forest
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 Jordan Lake Nutrient Sensitive Waters Management Strategy.
C. The sale of mitigation credits generated from the Bank Parcel approved under this
Instrument, shall be consistent with approved North Carolina statutes and rules for the
Jordan Lake Nutrient Sensitive Waters Management Strategy.
D. Mitigation activities proposed under this Instrument and corresponding Bank Parcel
Development Packages (BPDP) to generate Riparian Buffer Credits and Nutrient Offset
Credits shall be consistent with North Carolina statutes and rules for the Jordan Lake
Nutrient Sensitive Waters Management Strategy that are in place at the time a complete
BPDP is submitted to DWR.
IV. ESTABLISHMENT OF BANK PARCELS
Deleted: 2019-0153 V 1
- Commented [MK3]: sorry for the inconvenience, but I had to
change this number
A. In accordance with 15A NCAC 0213 .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 (Restoration or Preservation), and identifies features , - Deleted: zone
(streams, ditches, ponds, etc.) that meet general criteria to be suitable to generate mitigation
credits. Table 2.0 below outlines when a Site Viability Letter was issued by DWR for the
mitigation site proposed under this Instrument:

Table 2.0 — Site Viability Letter Details
Viability Letter
Viability Letter
Bank Parcel
NC DWR Site Visit
Received
� E iration Date
Cloud and Banner
June 21, 2016
August 17, 2016
None noted
B. A valid Site Viability Letter is required prior to submittal of t" BPDP. Site Viability_ - - Deleted: a
Letters will either expire on the dates listed in the table above or upon the submittal of an
individual As -Built Report to the DWR, whichever comes first. jf,lie Site Viability Letter_ _ - Deleted: BPDP to the DWR-
expires prior to submittal of a complete BPDP as described in Section V to DWR, then the Deleted: a
Sponsor must submit a formal request to DWR for a new Site Viability Letter for that Bank
Parcel�. f , — Commented [MK4]: Even though most of this doesn't apply to
this site since the BPDP is already in and reviewed-
C.
eviewed
C. The Bank Parcel proposed for inclusion under this Instrument shall require a Bank Parcel
Development Package ("BPDP") be submitted to, and approved by, the DWR prior to use
of the individual 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.
D. This Bank Parcel is slated to be developed in conjunction with the RES Cape Fear 02
Umbrella Mitigation Bank, Cloud and Banner United States Army Corps of Engineers
(USACE) Action ID #SAW -2016-02451 for stream and wetland mitigation. The mitigation
plan associated with this Bank Parcel has been submitted to the Interagency Review Team
(IRT) for review and approval.
E. The BPDP submitted under this instrument will be placed on public notice and made
available for public commenting for 15 calendar days.
Most of the Riparian Buffer Credits on this Bank Parcel will be generated along stream
channels that are proposed for stream mitigation. Stream Mitigation Plans will be submitted
under the RES Cape Fear 02 Umbrella Mitigation Bank referenced in "D" in this section.
Additionally, all activities conducted within riparian buffers and adjacent riparian areas for
purposes of generating Riparian Buffer Credits or Nutrient Offset Credits will be conducted
in concurrence with stream and wetland mitigation activities. Riparian Buffer Credit may
be achieved through restoration and preservation of DWR riparian buffers as they are
defined in 15A NCAC 02B .0267, and other riparian areas allowed per 15A NCAC 02B
.0295 (n) and (o) on the Bank Parcel. Riparian Buffer Credits are only attainable if the
width of the mitigated area is at least 20 feet as measured perpendicularly from top of bank.
G. The Bank Parcel is intended to provide Jordan Lake Riparian Buffer Credit as follows:
1. Planting �� a Restoration Site as defined in 15A NCAC 02B .0295(b) adjacent to, - - commented [MKS]: Planting what?
mitigated streams.
2. Maintaining a Preservation Site as defined in 15A NCAC 02B .0295(bb) byplacing__ - - Deleted: o
a conservation easement around riparian areas.
3. Diffused flow will be maintained onsite to the maximum extent practicable.

H. Nutrient Offset Credit may be achieved on this Bank Parcel through restoration of the
riparian areas, where agriculture is the predominant land use. 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.
I. The Bank Parcel is expected to provide Nutrient Offset Credits in accordance with 15A
NCAC 02B .0240 and is expected to provide Nutrient Offset Credit as follows:
1. Converting agricultural land uses within riparian areas to non-agricultural land
uses.
2. Planting hardwood trees and shrubs on a Restoration Site as defined in 15A NCAC
02B .0295(b) adjacent to streams where agriculture has been determined to be the
predominant land -use.
J. The Bank Parcel submitted for review under this Instrument isanticipated to begin stream_ , - Deleted: are
and wetland mitigation construction in Fall 2019.
V. BANK PARCEL DEVELOPMENT PACKAGE
A. "hhe BankParcelDevelopment Package` (BPDP) submitted under this Instrument shall -be— , - Deleted: Misubmitted to DWR for review and must be approved by DWR prior to any construction on Deleted: s
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
WRThe BPDP shall include detailed information consistent with the sections below
concerning; 1) site location (14 -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.
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 riparian buffers and other
riparian areas on the Bank Parcel to produce Riparian Buffer Credit or Nutrient Offset
Credit must be approved by DWR in writing prior to implementation. The failure of the
Sponsor to comply with this requirement may result in a revised or reduced credit release
schedule for�he Bank Parcel. All restoration activities must be performed in concurrence with- , - Deleted: that specific mitigation site
-------------------------------------------------
any stream and 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 the Bank Parcel
E. Prior to the release of any credits, the Sponsor shall record permanent conservation
easements at the County Register of Deeds' office in the county in which the Bank Parcel
is located 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 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.
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 the Bank Parcel
J. Following approval of the BPDP for the Bank Parcel, 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 projects prior to the first credit releases.

M. For the Bank Parcel, 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 THE 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 Jordan Lake
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 buffer and nutrient offset mitigation areas. The as -built
report will describe any deviation from the approved BPDP and will document the
following:
1. Buffer restoration and planting details, invasive species control, confirmation of
fence installation (if applicable), 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 has been completed.
3. Boundary Survey of the conservation easement area, signed and sealed by a
licensed surveyor, including an inventory 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 area showing where riparian restoration,
enhancement and preservation was performed and any deviations to the Bank
Parcel from what was approved in the BPDP.
5. As -Built map of the stream and wetland mitigation areas.

6. Aerial map of the mitigation area that was included in the approved BPDP.
Financial Assurance for the Bank Parcel
C. After completion of the restoration/construction on the Bank Parcel, 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 annual bond renewals.
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 DWR
approval, the bond may be lowered each year based on the adjusted cost to complete the
monitoring. No bond shall be less than $100,000 initially, to cover monitoring and
maintenance costs.
E. For the Bank Parcel, once DWR has released 100% of all credits for completion of all Bank
Parcel milestones described in Table �of Section VIII and in the corresponding BPDP, the , - commented [MK6]: 1 changed this table a so make sure thct
Bank Sponsor will be released from its performance obligations under the performance other table numbers are correct after this edit is made
bond required in C and D of this Section. Deleted: 3
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. Monitoring 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 the 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; and
3. A map, survey, or other figure showing locations of sampling plots, permanent
photo points, location of transects, etc.; and
4. Monitoring data, including specific vegetative counts showing that the trees or tree
and shrub species planted are meeting performance standards and updated
photographs; and
5. A copy of the most recent Bank credit/debit ledgers; and
6. Corresponding verification letters from designated local governments upon request;
and
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
BankParcel and the Bank. Depending on the degree of remedial actions required, the DWR
may modify the monitoring period.
VII. CALCULATION OF MITIGATION CREDITS FOR THE 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 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 preservation on the Bank Parcel, as described in 15A NCAC 0213 .0295 (o)
and defined in 15A NCAC 02B .0295 (b), can only be used for Riparian Buffer Credit.
D. Riparian Buffer Credit is defined as one (1) buffer credit per one square foot or 43,560
buffer credits per one acre.
E. 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
F. The acreage of Nutrient Offset Credits on the Bank Parcel submitted under this Instrument
is determined by applying the applicable ratio as provided in 15A NCAC 02B .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.
G. Nutrient Offset Credits cannot be achieved through the preservation activities performed
on this Bank Parcel.
H. Nutrient Offset Credits cannot be achieved through enhancement activities performed on
this Bank Parcel under 15A NCAC 02B .0295(0)(6). -------------------------- commented [MK7]: I don't think any enhancement credits were
proposed in the BPDP right? If no, just delete this item.
Nutrient Abatement of Restored Riparian Area/Buffers on Agricultural Lands: The
Sponsor and DWR agree to the following:
a. Pursuant to the Jordan Trading Rule Item 15A NCAC 02B .0273(2)(a), load
reductions eligible for credit are only those that exceed reduction needs calculated
by applying the strategy subwatershed percentage reduction goals as provided in
15A NCAC 02B .0262(5). For the Haw River Subwatershed, this requirement
results in a reduction of credits yielded per acre for restored riparian buffers when
compared with the credit given in other river basins. Table 3.0 below lists the
generated credit per acre of restored riparian buffer for the Haw River
Subwatershed.
Table 3.0. Generated credit yields for forest buffer restoration in Haw River Subwatershed
J. As required under Jordan Trading Item 15A NCAC 02B .0273(2)(d)(i), the party seeking
to sell credit must account for differences in instream nutrient losses between the location
of the reduction need and excess loading reduction being delivered to the affected area of
10
Credit Generated (lbs/30 yrs/ac)
Jordan Subwatershed
Nitrogen
Phosphorus
Haw River
2,249.36
143.81
J. As required under Jordan Trading Item 15A NCAC 02B .0273(2)(d)(i), the party seeking
to sell credit must account for differences in instream nutrient losses between the location
of the reduction need and excess loading reduction being delivered to the affected area of
10

Jordan Lake. Attachment B produced the delivered Jordan Lake Total Nitrogen (TN) and
Jorden Lake Total Phosphorus (TP) credit yields per acre of buffer restoration by each
Jordan Lake 14 -digit I UC subwatershed.
a. Delivered credits are calculated by applying the delivery factors in Table 4.0 below
and the acreage of riparian restoration to the generated credit yeields from Table
3.0 above. jhe delivery factors fo_r th_e Bank _Parcel _under this Instrument _en_t_for_T_ota_l , - Deleted: to the generated credit yields from Table 3 above
Nitro en (TN) and Total Phos horus (TP) are rovided in Table 4.0 below usin and are provided in attachment B.map and ces data of the
gp p g � 14 -digit HUC Subwate�heds we available online at:
Attachment B for reference. The amount of delivered credits for each Bank Parcel Deleted: http://Portal.nedenr.org4ob/iordanlake
will be detailed In the BPDP for the Bank PaTCeI. - - Commented [MKS]: Add Table 4.0 here and title it "Table 4.0 -
Delivery Factors. You can use this UMBI for a table example.
https://edoes.dog.ne.gov[W aterResources/DoeView.wl)x?dbid=0&id
b. The Bank Sponsor shall report the pounds of nitrogen and phosphorus credit per =652159&page=l&cr=1
acre of restored riparian buffer in the Bank Parcel's BPDP for both credits
generated at the site of the nutrient reduction activity and the credit delivered to
Jordan Lake.Deleted: The Bank Sponsor shall refer to Attachment B for
c determining delivered credit in the Jordan lake Watershed.
K. The Sponsor and DWR agree the methodology and calculations for determining nitrogen
and phosphorus reduction, associated with restoration and enhancement of riparian areas
as described in Section IV 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 the bank parcel unless the viability letter for that Bank Parcel
has expired.
11

VIII. 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 in Table 5.0 - Deleted: s
Table 50
- Credit Release Schedule for Riparian Buffer and Nutrient Offset Credits
Task
Project Milestone
% Credit
Available for
Sale
1
Instrument and BPDP Approved by DWR, Conservation Easement Recorded*
and Financial Assurance Posted
20
2
Mitigation Site Earthwork Planting and Installation of Monitoring Devices
Completed and all Applicable Permits Obtained
20
3
Monitoring Financial Assurance Posted and Approval of As -Built Report
10
4
Monitoring Report 91: Approved by the DWR** & financial assurance renewed
10
5
Monit ring Report #2: Approved by the DWR** & financial assurance renewed
10
6
Monitoring Report #3: Approved by the DWR** & financial assurance renewed
10
7
Item B (1) of Section X in this Instrument has been completed and approved by
DWR.
5
No remaining credits will be released until the conservation easement has been
assigned to an appraved land trust or stewardship
8
Monit ring Report #4: Approved by the DWR** & financial assurance renewed
5
9
Monitoring Report #5: Approved by the DWR** and final site visit by DWR
has been conducted
10
Total
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 the credit release schedules 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.
C. DWR may consider a Credit Release Schedule for a Bank Parcel based on the extent of
change between current onsite conditions and proposed post construction conditions.
D. The Sponsor must initiate implementation of the approved BPDP for the site under this
Instrument in concurrence with all stream mitigation activities proposed in the approved
Mitigation Plans referenced in Item D of Section IV of this Instrument.
12
Deleted: <#>A Credit Release Schedule shall be provided in
the site-specific BPDP included in this Instrument and shall
outline Bank Parcel milestones expected to be completed for the
mitigation bank Credit Release Schedules approved in the BPDP
will be based on the completion of these Bank Parcel milestones.¶
Deleted: <#>In general, Bank Parcel milestones and the
percentage of credits most often released upon completion are
described in Table 4.0 below: I
Deleted: 4

IX. PROCEDURE FOR DEBITING AND CREDITING, ---------
Deleted: NnnGAnoN CREDITS
Credit Ledgers
A.
The Bank Sponsor shall maintain a credit ledger for each mitigation type for the bank parcel
under this Instrument: Credit ledgers shall provide the accounting for jiparian Buffer - -
- Deleted: buffermitigation
Credi in square feet and acres, and Nutrient Offset Credits in pounds and acres. ,
- Deleted: credits
B.
Each credit ledger shall be submitted on a separate 8 'h inch by 11 -inch spreadsheet with
legible font style and font size. All ledgers shall be submitted using the templates provided
in Attachments E and F of this Instrument or any updated versions to these templates as
provided by DWR.
Credit Processing
C.
Riparian Buffer Credits generated on this Bank Parcel will be used to provide mitigation
for authorized buffer impacts within the Haw River Subwatershed of the Jordan Lake
Watershed according to 15A NCAC 02B .0295(g).
D.
Nutrient Offset Credits generated on this Bank Parcel will be used to offset nitrogen and
phosphorus nutrient loads within the raw River Subwatershed of the Jordan Lake. in -
- Deleted: 03030002 auC of the
accordance with 15A NCAC 02B .0240.
Deleted: watershed
E.
Available predits (credits that have been released by DWR but not sold by the Sponsor)_ -
- Deleted: mitigation
that are generated from riparian restoration, as defined in 15A NCAC 02B .0295(b) and -
- Deleted: buffer
described in 15A NCAC 02B .0295(ni on agriculture land can be converted and transferred
- Deleted: and 15A NCAC 02a .0295(oX3
from Riparian Buffer Credits to Nutrient Offset Credits and from Nutrient Offset Credits
Deleted:
back to Riparian Buffer Credits upon written approval from DWR.
F.
Riparian Buffer Preservation credits generated on this Bank Parcel is not transferrable into
nutrient offset credits.
G.
The Bank Sponsor shall obtain written verification of buffer mitigation required from the
delegated local government in the Haw River Subwatershed of the Jordan Lake Watershed
or DWR prior to debiting Riparian Buffer Credits from the individual Bank Parcel.
H.
The Bank Sponsor shall obtain verification of nutrient offset need from a designated local
government in the Haw River Subwatershed of the Jordan Lake Watershed, prior to
debiting Nutrient Offset Credits from the Bank Parcel.
I.
All credit and debit transactions for the bank parcel under this Instrument shall be
accurately depicted in the credit ledgers. The Bank Sponsor shall provide DWR up-to-date
credit ledgers for the Bank by the tenth (100i) of each month. At a minimum and upon
request ,DWR shall receive a hard copy of updated credit ledgers along with the
corresponding Mitigation Credit Transfer Certificates and all corresponding letters from
the designated or delegated local governments or DWR where applicable once -a year._- -
- Deleted:
13

Notification of all credit sales shall be provided to DWR until all credits that have been
released have been sold.
Mitigation Credit Transfer Certificates
J. 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) Bank Sponsor Name, (2) BWnk Parcel_a_s_it appears -in -this - - Deleted:
Instrument (3) DWR project number for the BPDP. Deleted: s
Deleted: b
2. Credit Details: (1) date of receipt, (2) identify if full or partial payment, (3 — when Deleted: p
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 phosphorus credits purchased in pounds and confirmation from the
designated local government of the amount required, and (5 — 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) 14 -digit HUC, (3) the subwatershed within the Jordan
Lake watershed, (4) nutrient strategy applicable to the project, (5 — when
applicable) designated local government requiring Nutrient Offset Credits, and/or
(6) DWR authorization number or delegated local government requiring Riparian
Buffer Credits for this project.
K. 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 the Sponsor is relieved of all of
its responsibilities to the Bank Parcel and there are no mitigation credits left to sell.
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.
14

3. All credits have been released and debited and updated ledgers showing zero credit
balances have been submitted and approved by DWR.
XI. GENERAL PROVISIONS FOR THE 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 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 &ction VIII and confirmation has been received by the DWR that the - - Deleted: a,e aPDP
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 of 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.
15

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.
J. 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, electronic mail, 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: Environmental Banc & Exchange, LLC _ _ _ _ _ _ _ _ _ - - Deleted: EEx, LLC
Attention: Mr. Brad Breslow
302 Jefferson Street Suite 110
Raleigh, North Carolina 27605
Brad Breslow
[e-mail]
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
16

L. Applicable Law: This Agreement shall be construed under the laws of the State of North
Carolina.
tENVIRONMENTAL-BANC & EXCHANGE, LC Commented [MK10]: The name should be spelled out in £uu £or
-------- -- --------------------- - - - - - -
the signature page.
By: (Print) Deleted: EBX, LLC
(Signature)
Title:
Date:
NORTH CAROLINA DEPARTMENT OF ENVIRONMENTAL QUALITY -DIVISION OF
WATER RESOURCES
By: (Print)
(Signature)
Title:
Date:
17

Updated
Nutrient Offset Program & Buffer Mitigation Program 09/15/2015
MBI Authorities for Environmental Banc & Exchange, LLC effective 04/18/2019
ATTACHMENT A
Authorities pertaining to the Cloud and Banner 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
Session Laws
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
Jordan Buffer and Jordan Water Sunnly Nutrient Strate
General Statutes and Session Laws:
G.S. § 143-214.5 Water Supply Watershed Protection)
S.L. 2013-395
S.L. 2012-201
S.L. 2012-200 S. L. 2012-187
S.L. 2009-216
S.L. 2009-484
S.L. 2006-259 (Section 31(a))
S.L. 2005-190
S.L. 1999-329 (part of G.S. 143B-282)
Administrative Rules:
15A NCAC 2B .0262 Purpose and Scope
15A NCAC 2B .0263 Definitions
15A NCAC 2B .0264 Agriculture
15A NCAC 2B .0265 Stormwater Management for New Development
15A NCAC 2B .0267 Jordan Water Supply Nutrient Strategy: Protection of Existing Riparian Buffers
15A NCAC 2B .0270 Wastewater Discharge Requirements
15A NCAC 2B .0271 Stormwater Requirements for State and Federal Entities
15A NCAC 2B .0272 Fertilizer Management
15A NCAC 2B .0273 Options for Offsetting Nutrient Loads