20171122 Ver 2_DRAFT RS GUC MBI_20190913

ID#* 20171122
Select Reviewer:*
Katie Merritt
Initial Review
Completed Date
09/13/2019
Mitigation Project Submittal - 9/13/2019
Version* 2
Is this a Prospectus, Technical Proposal or a New Site? *
Type of Mitigation Project:*
r Stream r Wetlands W Buffer V Nutrient Offset
(Select all that apply)
Project Contact Information
Contact Name:*
Raymond Holz
Project Information
Existing 20171122
(DWR) (nunbersonly ...nodash)
ID#:*
Project Type: r DMS r Mitigation Bank
Project Name: GUC Bank Parcel
County: Pitt
Document Information
C' c-'
Email Address:*
[e-mail]
Existing 2
Version: (nunbersonly)
Mitigation Document Type:*
Mitigation Plans
File Upload: Rev. Draft Submital GUC BPDP NCDWR 2017-
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1122v2_09-06-2019. pdf
DRAFT RS GUC MBI_09-06-2019_.pdf 417.33KB
Rease upload only one RDF of the conplete file that needs to be subnitted...
Signature
Print Name:* Raymond Holz

Signature:*

AGREEMENT TO ESTABLISH RESTORATION SYSTEMS' TARPAM MITIGATION
BANKING INSTRUMENT IN THE TAR-PAMLICO RIVER BASIN FOR RIPARIAN
BUFFER AND NUTRIENT OFFSET CREDITS PURSUANT TO THE TARPAM
NUTRIENT MANAGEMENT STRATEGY
TABLE OF CONTENTS
I.
PREAMBLE.......................................................................................................................................1
II.
LOCATION AND GEOGRAPHIC SERVICE AREA......................................................................1
III.
AUTHORITIES..................................................................................................................................2
IV.
ESTABLISHMENT OF BANK A PARCEL.....................................................................................2
V.
BANK PARCEL DEVELOPMENT PACKAGE..............................................................................4
VI.
POST CONSTRUCTION DOCUMENTATION FOR THE BANK PARCEL................................5
VII.
CALCULATION OF CREDITS FOR THE BANK PARCEL..........................................................8
VIII.
CREDIT RELEASE SCHEDULE....................................................................................................10
IX.
PROCEDURE FOR DEBITING AND CREDITING NUTRIENT OFFSET CREDITS................I I
X.
BANK PARCEL CLOSURE............................................................................................................12
XI.
GENERAL PROVISIONS FOR THE BANK PARCEL.................................................................13
/r0rMa851a0lf.`.'
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 — Ledger Templates

L PREAMBLE
This Restoration Systems (RS) TarPam GUC Riparian Buffer and Nutrient Offset Banking
Instrument ("Instrument") regarding the establishment, use, operation, and maintenance of
GUC Nutrient Offset Bank Parcel, Phase 1 and 2, further identified in Section II, is to provide
TarPam Riparian Buffer credit and Nutrient Strategy nutrient load reduction credit ("Nutrient
Offset Credits"), is made and entered into by and among Restoration Systems 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
(Attachment B) and 15A NCAC 02B .0295 (Attachment C). This instrument is for the RS'
sponsored GUC Bank Parcel (Bank Parcel).
The purpose of the Bank Parcel is:
A. To restore and preserve riparian vegetation adjacent to streams and/or agricultural ditches
with the intent to improve water quality within the Tar -Pamlico River Basin. The Bank
Parcel is located in the USGS 8 -digit HUC 03020103 of the Tar River Basin.
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 Tar -Pamlico -River Basin, for developments and or permit
obligations requiring such mitigation.
IL LOCATION AND GEOGRAPHIC SERVICE AREA
A. The Geographic Service Area ("GSA") is the designated area wherein a Bank can
reasonably be expected to utilize and sell Riparian Buffer Credits and/or Nutrient Offset
Credits for impacts requiring such mitigation.
B. The GSA for this instrument is limited to the Tar -Pamlico -River Basin in the State of North
Carolina, United States Geological Survey ("USGS") 8 -digit Hydrologic Unit Code
(`HUC") 03020103, unless otherwise authorized by the DWR.
C. Sale or transfer of Riparian Buffer Credits shall be limited to the Tar -Pamlico -River Basin
(8 -digit HUC 03020103), 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 the Tar -Pamlico River Basin
(8 -digit HUC 03020103), unless otherwise authorized by the DWR or delegated local
government in accordance with 15A NCAC 02B .0240.
E. Table 1 provides site-specific details of the Bank Parcel proposed under this Instrument.

Table 1.0 — Site-specific Details
IILAUTHORITIES
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 *ew-additionally approved North Carolina ("State")
statutes and rules for the Tar -Pamlico Nutrient Strategy.
C. The selling of mitigation credits generated from the Bank Parcel approved under this
Instrument, shall be consistent with approved North Carolina ("State") statutes and rules
for the Tar -Pamlico Nutrient Strategy.
D. Mitigation activities proposed under this Instrument and corresponding Bank Parcel
Development Package (BPDP) to generate Riparian Buffer Credits and Nutrient Offset
Credits shall be consistent with North Carolina ("State") statutes and rules for the TarParn
Management Strategy that are in place at the time a complete BPDP is submitted to DWR.
IV. ESTABLISHMENT OF BANK A PARCEL
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 Riparian Buffer Credits and Nutrient
Offset Credits, but is a preliminary review of the Bank Parcel that details and confirms
existing land -use conditions, defines the riparian zone sites (Enhancement, Preservation,
or Restoration), and identifies features (streams, ditches, ponds, etc.) that meet general
criteria to be suitable to generate riparian Buffer Credits and Nutrient Offset Credits. Table
2.0 below outlines when a Site Viability Letter was issued by NCDWR:
Table 2.0 — Site Viability Letter Details
Bank Parcel
NC DWR Site Visit
14 -Digit USGS
Viability Letter
Named
Bank Parcel
Expiration Date
GUC
Project
May 29, 2019
Primary Land
County
Hydrologic Unit
Receiving
Name
Code
Location
Stream
Use/s
GUC
Pitt
03020103070030
Greenville
Tar River
Biosolid Application
IILAUTHORITIES
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 *ew-additionally approved North Carolina ("State")
statutes and rules for the Tar -Pamlico Nutrient Strategy.
C. The selling of mitigation credits generated from the Bank Parcel approved under this
Instrument, shall be consistent with approved North Carolina ("State") statutes and rules
for the Tar -Pamlico Nutrient Strategy.
D. Mitigation activities proposed under this Instrument and corresponding Bank Parcel
Development Package (BPDP) to generate Riparian Buffer Credits and Nutrient Offset
Credits shall be consistent with North Carolina ("State") statutes and rules for the TarParn
Management Strategy that are in place at the time a complete BPDP is submitted to DWR.
IV. ESTABLISHMENT OF BANK A PARCEL
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 Riparian Buffer Credits and Nutrient
Offset Credits, but is a preliminary review of the Bank Parcel that details and confirms
existing land -use conditions, defines the riparian zone sites (Enhancement, Preservation,
or Restoration), and identifies features (streams, ditches, ponds, etc.) that meet general
criteria to be suitable to generate riparian Buffer Credits and Nutrient Offset Credits. Table
2.0 below outlines when a Site Viability Letter was issued by NCDWR:
Table 2.0 — Site Viability Letter Details
Bank Parcel
NC DWR Site Visit
Viability Letter
Viability Letter
Received
Expiration Date
GUC
November 14, 2017
May 29, 2019
March 25, 2021

B. A valid Site Viability Letter is required prior to submittal of the BPDP. Site Viability
Letters will either expire on the dates listed above or upon the submittal of an individual
As -Built Report to the DWR, whichever comes first. If a Site Viability Letter expires prior
to submittal of a complete BPDP as described in Section V to DWR, then the Sponsor must
submit a formal request to DWR for a new Site Viability Letter for that Bank Parcel.
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 Riparian Buffer Credits and Nutrient Offset Credits
purposes or for any sale, lease or transfer of any associated credits. The contents of the
BPDP are provided in Section V.
D. The BPDP submitted under this instrument will be placed on public notice and made
available for public commenting for 15 calendar days.
E. In general, the Bank Sponsor expects all Riparian Buffer Credits and Nutrient Offset
Credits to be generated through either restoration or preservation of riparian areas. Riparian
"Restoration" and "Preservation" as defined in 15A NCAC 02B .0295 (b) and (n) will be
used to describe Restoration and Preservation of riparian areas used to generate Riparian
Buffer Credits and Nutrient Offset Credits on the Bank Parcel under this Instrument.
Riparian Buffer Credits are only attainable if the width of the restoration site and
preservation site is at least 20 feet from top of bank.
F. The Bank Parcel is intended to provide Riparian Buffer Credit as follows:
1. Planting on a Restoration Site as defined in 15A NCAC 02B .0295(b).
2. Diffused flow will be maintained onsite to the maximum extent practicable.
3. Preservation of existing Riparian Buffers as defined in 15A NCAC 02B .0295(0)
G. Nutrient Offset Credit may be achieved on the Bank Parcel through restoration of the
riparian areas where agriculture is the predominant land use. Nutrient Offset Credits are
only attainable if the width of the restored or enhanced areas are at least fifty (50) feet as
measured perpendicular from tops of banks. The width of the restoration and enhancement
area begins at the most landward limit of the top of bank or the rooted herbaceous
vegetation and extends landward a minimum of 50' and a maximum of 200 feet on all sides
of the surface waters.
H. 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 or trees and shrubs on a Restoration Site as defined in 15A
NCAC 02B .0295 (b) adjacent to streams and primary ditches where agriculture
has been determined to be the predominant land -use.
F. The GUC Bank Parcel submitted for review under this Instrument aafe-is anticipated to
begin construction of proposed riparian area restoration activities after approval of this

Banking Instrument and the related Bank Parcel Development Package and as early as4n
December 2019.
V. BANK PARCEL DEVELOPMENT PACKAGE
A. The 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 nutrient offset
activities including a detailed vegetation plan; 4) monitoring and maintenance plans; 5)
financial assurances; 6) associated buffer/nutrient credit calculations, which shall include
credit generation, service area, and accounting as appropriate; 7) stream determination
letter from DWR, and 8) Site Viability Letter from DWR, and 9) 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 or enhancement activities or proposed construction within the riparian
buffers and other riparian areas on the Bank Parcel to produce Riparian Buffer Credit
and/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 the Bank Parcel.
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 Deed's 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 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, 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 the Performance Bond shall be 100% of the estimated cost for
implementation of the Nutrient Offset 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. 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:
Instrument and BPDP Approved by DWR, Conservation Easement Recorded,
Financial Assurance Posted;
Site Earthwork and Planting and Installation of Monitoring Devices Completed;
As -Built Report as described in Section VI has been received by DWR; and
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 Formatted: Indent: Left: 0"

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 Riparian
Buffers or other riparian areas until Item B (1) and (2) of Section X have been satisfied.
B. When all restoration and enhancement activities have been completed, the Sponsor will
submit an as -built plan and report for each phase of the Bank Parcel within 30 calendar
days after completing the establishment of the buffer and nutrient offset areas. The As -built
Report will be submitted to DWR and describe any deviation from the approved BPDP and
will document the following:
1. Riparian restoration and planting details, invasive species control, confirmation of
fence installation if applicable, cattle exclusions if applicable, monitoring device
locations, vegetation plot locations, and photo point locations, as appropriate.
2. Boundary Survey of the conservation easement area, signed and sealed by a
licensed surveyor, including an inventory of the final riparian buffer and/or nutrient
offset areas for nutrient offset credits in both square feet and acres.
3. As -built map of the Buffer and Nutrient Offset areas showing where riparian
restoration and enhancement were performed and any deviations to the Bank Parcel
from what was approved in the BPDP.
4. Aerial map of the areas included in the approved BPDP.
Financial Assurance for the Bank Parcel
C. After completion of the restoration/construction on each phase of 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 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 renewal.
D. A Performance/Maintenance Bond shall be secured each year for a minimum of five years,
and until DWR has released all Riparian Buffer and Nutrient Offset 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 to cover monitoring
and maintenance costs.
E. Once DWR has released 100% of all credits for completion of all Bank Parcel milestones
described in Table 3 of Section VIII and in the corresponding BPDP, the Bank Sponsor
will 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 maybe
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 and/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 at the date of acceptance of the BPDP.
The Sponsor shall submit 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.
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 RIPARIAN BUFFER CREDITS AND NUTRIENT OFFSET
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 02B .0295 (n),
15A NCAC 02b .0295 (o)(4) 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.
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 NCAC 02H .0506"
Nutrient Offset Credits
A. 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 bank.

B. Nutrient Offset Credits cannot be achieved through the preservation activities performed
on Bank Parcel.
C. Nutrient Abatement of Restored Riparian Area/Buffers: The Sponsor and DWR agree to
the following:
The pounds of nitrogen offset per acre of restored riparian areas/buffers shall be
2,273.02 pounds per acre,
Or, 75.77 pounds per acre per year in perpetuity, upon subsequent approval by
DWR.
The pounds of phosphorus offset per acre of restored riparian areas/buffers shall be
146.40 pounds per acre,
Or, 4.88 pounds per acre per year in perpetuity, upon subsequent approval by DWR
D. 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 fined as part of the approval of this
Instrument, with the fined 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.
This space left blank intentionally, do not add text to this space.

VIII. CREDIT RELEASE SCHEDULE
A. Upon submittal of all appropriate documentation by the Sponsor, and subsequent approval
by DWR, it is agreed that Riparian Buffer and Nutrient Offset credits associated with each
phase of the Bank Parcel will become available for use, sale, lease or transfer by the
Sponsor in accordance with the following Credit Release Schedule:.
Table 3.0 - Credit Release Schedule for Riparian Buffer and Nutrient Offset Credits
% Credit
Task
Project Milestone
Available for
Sale
1
Instrument and BPDP Approved by DWR, Conservation Easement
20
Recorded* and Financial Assurance Posted
2
Restoration & Enhancement Site Earthwork Planting and Installation of
20
Monitoring Devices Completed and applicable permits obtained
3
Monitoring Financial Assurance Posted and Approval of As -Built Report
10
4
Monitoring Report 91: Approved by the DWR** & financial assurances
10
renewed
5
Monitoring Report 92: Approved by the DWR** & financial assurances
10
renewed
6
Monitoring Report 93: Approved by the DWR** & financial assurances
10
renewed
7
Item B (1) of Section X in this Instrument has been completed and
5
approved by DWR.
No remaining credits will be released until the conservation easement has
been assigned to an approved land trust or stewardship
8
Monitoring Report 94: Approved by the DWR** & financial assurances
5
renewed
9
Monitoring Report 95: Approved by the DWR** and final site visit by
10
DWR has been conducted
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
1}B. DWR may modify the 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.
10

IX. PROCEDURE FOR DEBITING AND CREDITING NUTRIENT OFFSET CREDITS
Credit Ledgers
A. The Bank Sponsor shall maintain a credit ledger for each mitigation type for each phase of
the Bank Parcel under this Instrument: Credit ledgers shall provide the accounting for
Riparian Buffer 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 `/,in X 11 -in spreadsheet with legible
font style and font size. All ledgers shall be submitted using the templates provided in
(Attachments D and E , f this Instrument or any updated versions to these templates as Commented [MK1]: Make sere these references are accurate on
provided by DWR. final drab
Credit Processing
C. Riparian Buffer Credits generated on this Bank Parcel will be used to provide mitigation
for authorized buffer impacts within the Tar -Pamlico -River Basin 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 03020103 of the Tar River Basin 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 or enhancement, as defined in
15A NCAC 02B .0295 (b) and described in 15A NCAC 02B .0295(n) and 15A NCAC 02b
.0295 (o)(3) and (o)(7) respectively, 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. The Bank Sponsor shall obtain verification of nutrient offset need from a designated local
government or authority in the Tar River Basin, prior to debiting Nutrient Offset Credits
from the Bank Parcel.
G. The Bank Sponsor shall obtain verification of buffer mitigation required from the delegated
local government in the Tar River Basin or DWR prior to debiting Riparian Buffer Credits
from the Bank Parcel.
H. 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 Parcel by the tenth (10") 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 ("Certificate") and all corresponding
HE

letters from the designated local governments or DWR where applicable, once a year.
Notification of all credit sales shall be provided to DWR until all credits that have been
released have been sold.
Riparian Buffer Credit and/or Nutrient Offset Credit Sale, Lease or Transfer Certificates
I. All credit sales, leases or transfers 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 as it appears in this Instrument, (3) DWR
project number for the BPDP as it appears in Table 1.0
2. Credit Details: (1) date of receipt, (2) identify if full or partial payment, (3) amount
of nitrogen and/or phosphorus credits purchased, leased or transferred in pounds,
(4) 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 — when applicable) DWR authorization
number or delegated local government requiring Riparian Buffer Credits for this
project
J. If the DWR determines that the Bank is operating at a deficit (e.g. the Sponsor is utilizing,
selling, leasing or transferring credits that are not available), or the Bank is out of
compliance with statutes, rules or this Agreement, the use 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 Nutrient Offset 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.
All credits have been released and debited and updated ledgers showing zero credit
balances have been submitted and approved by DWR.
12

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, and/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.
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 the BPDP 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 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
Nutrient Offset 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,
13

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.
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: Restoration Systems
Attn: Barrett Jenkins
1101 Haynes Street, Suite 211
Raleigh, NC 27605
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.
14

RESTORATION SYSTEMS, LLC
By: (Print)
(Signature)
Title:
Date:
NORTH CAROLINA DEPARTMENT OF ENVIRONMENTAL QUALITY -DIVISION OF
WATER RESOURCES
By: (Print)
(Signature)
Title:
Date:
15

ATTACHMENT
A — Division of Water Resources Authority Document

ATTACHMENT
B — Rule Text 15A NCAC 02B .0240

ATTACHMENT
C — Rule Text 15A NCAC 02B .0295 (Effective November 1, 2015)

ATTACHMENT
D — Ledger Templates