20160225 Ver 2_Credit Release Task 2_20190530

ROY COOPER
Governor
MICHAEL S. REGAN
Secretary
LINDA CULPEPPER
Director
NORTH CAROLINA
Environmental Quality
May 30, 2019
John Hutton DWR Project #: 2016-0225v2
Wildlands Holdings IV, LLC Alamance County
312 West Millbrook Rd, Suite 225
Raleigh, NC 27609
Re: Cane Creek Umbrella Mitigation Banking Instrument (UMBI)
South Fork Nutrient Offset & Buffer Mitigation Bank
Credit Release— Task 3
Dear Mr. Hutton:
On March 12, 2019, the Division of Water Resources (DWR) received an As -Built Report from
Wildlands Holdings IV, LLC (Wildlands) for the subject site. On May 2, 2019, clarifications
and edits to the report were requested. On May 7, 2019, DWR received a revised As -Built report
and supporting materials respectively with all the recommended clarifications and edits.
According to the As -Built survey submitted with the As -Built Report, there are slight
adjustments in the total amounts of Buffer Mitigation credits and Nitrogen Nutrient Offset
credits as compared to the Bank Parcel Development Package. The subject site has generated
0.95 acres (30,955 ft2) of buffer restoration & enhancement credits, 8.96 acres (187,561 ft2) of
buffer preservation and enhancement credits from cattle exclusion, and 4.92 acres (7,857.46 lbs -
N, 474.06 lbs -P) of nutrient offset credits. The credits being released have been modified to
reflect any changes to the creditable acreage as proposed in the BPDP.
DWR received a performance bond (#107063164) in the amount of $100,000 issued to Wildlands
from Travelers Casualty and Surety Company of America, to cover monitoring and
maintenance at the subject site. The term of this bond applies beginning May 3, 2019 and ends
with the approval of the Year 1 Monitoring Report. Future credit releases will be dependent on
both the renewal of this performance bond and the annual monitoring reports.
In accordance with the UMBI, signed on March 6, 2018, the following Project Milestones have
been met and the corresponding credits shall be released:
Task/Milestones
Credit
3) Monitoring Financial Assurance Posted and Approval of As -Built Report 10%
TOTAL: 10%
North Carolina Department of Environmental Quality I Division of Water Resources
512 North Salisbury Street 1 1617 Mail Service Center I Raleigh, North Carolina 27699-1617

South Fork Site
Wildlands
May 30, 2019
By copy of this correspondence, DWR confirms that you have satisfied the above requirements for
the above -referenced tract. Therefore, 10% of your Jordan Lake riparian buffer Restoration and
Enhancement credits (0.10 x 30,955 ft2 = 3,095.50 ft2) plus 3,540.49 yields 6,635.99 ft2 now
released. Additionally, 10% of your Jordan Lake riparian buffer Enhancement (via cattle exclusion)
and Preservation credits (0.10 x 18 7,5 61 ft2 = 18,756.10 ft2) minus 3,218.49 yields 15,537.61 ft2 now
released.
Additionally, 10% of your generated nitrogen offset credits (0.10 x 11,066.85 = 1,106.69 lb -N)
minus 293.54 lbs -N yields 813.15 lbs -N now released. Additionally, 10% of your generated
phosphorus credits (0.10 x 707.55 = 70.76 lb -P) minus 18.76 yields 52 lbs -P now released.
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 03030002050050 are
71 % for nitrogen and 67% for phosphorous. Therefore, the total amounts of delivered nutrient offset
credits for this site are 8,320.60 lb -N and 502 lb -P. By copy of this correspondence, 10% of your
delivered nitrogen offset credits (0.10 x 7,857.46 lb -N = 785.75 lb -N) minus 208.41 lbs -P yields
577.34 lbs -N. Additionally, 10% of our delivered phosphorus credits (0.10 x 474.06 = 47.41 lb -P)
minus 12.57 yields 34.84 lbs -P now available for sale.
Please note that of the nutrient offsets, only the delivered nutrient offset credits can be sold
from this bank and used for impacts in the Haw River Arm of Jordan Lake within the Cape
Fear River Basin. Additionally, riparian buffer credits can only be used to offset impacts
located in the Haw River Sub Watershed of Jordan Lake according to 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.
Nmcemy,
e Merritt
401 & Buffer Permitting Branch
cc:File Copy (Katie Merritt)
Robert Bugg/Ian Hazelhoff — Wildlands (via electronic mail)
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