20040325 Ver 1_Mitigation Information_19990217

ECOBANK
RECEIVED
FEB 1 6 1999
February 15, 1999
Mr. G. Wayne Wright
Chief, Regulatory Division
Department of the Army
Wilmington District Corps of Engineers
Post Office Box 1890
Wilmington, North Carolina 28402-1890
Re: Barra Farms Mitigation Banking Instrument (EBB)
Dear Mr. Wright:
REGI ATORY
WILIMINGTON1 FIELD OFFICE
Enclosed are two executed copies of the Barra Farms Mitigation Banking Instrument. We
have added a signatory page for each individual agency signatory and have referenced
those pages on the original signature page.
Thank you for your attention to this matter, and if any other changes are necessary, please
advise us.
Sincerely,
William G. Gerber
ECOBANK
5999,
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Enclosures
1555 HOWELL BRANCH ROAD, WINTER PARK. FLORIDA 32789
[phone] , FAX [phone]
DEPARTMENT OF THE ARMY
WILMINGTON DISTRICT, CORPS OF ENGINEERS
P.O. BOX 1890
WILMINGTON, NORTH CAROLINA 28402-1890
IN REPLY REFER TO February 12, 1999
Regulatory Division
Mr. Bill Gerber
ECOBANK
1555 Howell Branch Road
Winter Park, Florida 32789
Dear Mr. Gerber:
Enclosed is a copy of the Barra Farms Mitigation Banking Instrument which has been
approved by the South Atlantic Division Commander, U.S. Army Corps of Engineers. As
discussed with Ms. Brooke Lamson of our Office of Counsel, you should change the signature
page of the document to reflect the signature of the ECOBANK representative, Alan G. Fickett,
and our commander, Col. Terry R. Youngbluth., on page 14 of 14. Each of the other signatories
should be on a subsequent separate page. If ECOBANK will produce two copies of the MBI and
sign each in the appropriate place and return both copies to us, we will proceed to obtain the
signatures of the other parties. We will return a fully signed copy to you.
Thank you for your attention to this and if there are any questions, please contact me,
telephone [phone].
Sincerely,
G. Wayne Wright
Chief, Regulatory Division
Enclosure

L T ?? %(
.,
DEPARTMENT OF THE ARMY
WILMINGTON DISTRICT, CORPS OF ENGINEERS
P.O. BOX 1890
WILMINGTON, NORTH CAROLINA 28402-1890
IN REPLY REFER TO
CESAW-RG (1145b)
13 January 1999
MEMORANDUM FOR COMMANDER, SOUTH ATLANTIC DIVISION

SUBJECT: Review of Mitigation Banking Instrument (MBI), Barra Farms Mitigation Bank,
Cumberland County, North Carolina.
1. Reference Federal Guidance for the Establishment, Use, and Operation of Mitigation
Banks, 60 FR 228, pp. 58605-58614.
2. Attached is a copy of an "Agreement to Establish the Barra Farms Cape Fear Regional
Mitigation Bank in Cumberland County, North Carolina". This'is a proposed mitigation banking
instrument for a proposed mitigation bank which would be located near the community of Cedar
Creek and the Cape Fear River, in Cumberland County, North Carolina. This instrument has
been coordinated with the U.S. Environmental Protection Agency, U.S. Fish and Wildlife
Service, the North Carolina Division Water Quality, and the North Carolina Wildlife Resources
Commission.
3. The MBI has been reviewed and approved by my staff, including Counsel. Request your
review and appropriate action in accordance with the referenced guidance.
4. POC with my staff is Dr. G. Wayne Wright, Chief, Regulatory Division, telephone (9-10)
251-4630, or Ms. Brooke Lamson, Office of Counsel, telephone [phone].
Encl
C?SAD-ET-CO-R (CESAW-RG/13 Jan 99) (1145b) 1st End Ms. Bevel/[phone]
SUBJECT: Review of Mitigation Banldng Instrument (MBI), Barra Farms Mitigation Bank,
Cumberland, County, North Carolina
Commander, South Atlantic Division, U.S. Army Corps of Engineers,
60 Forsyth Street, SW, Room 9M15, Atlanta, Georgia 30303-8801 5 F F3 1999
FOR COMMANDER, WILMINGTON DISTRICT
1. We have reviewed your proposed Mitigation Banking Instrument for the creation and
management of the Barra Farms Mitigation Bank in Cumberland County, North Carolina.
2. In accordance with CECW-OR memorandum dated 23 December 1993, subject: Approval
of Regulatory Memoranda of Agreement/Understanding, implementation of this mitigation
banldng agreement is approved. A copy of the final signed banking agreement should be
furnished to CESAD-ET-CO-R. Any future changes to the agreement should be provided to
this office for review prior to implementation.

Encl J. RICHARD CAPKA
nc Brigadier General, USA
Commanding
2
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a ; R E C E: IV F
iam D
DEC 16 1998
REGULATORY
WILMINGTON FIELD OFFICE
MITIGATION BANKING INSTRUMENT
AGREEMENT TO ESTABLISH THE
BARRA FARMS CAPE FEAR REGIONAL MITIGATION BANK
IN CUMBERLAND COUNTY, NORTH CAROLINA
Prepared for:
Ecosystems Land Mitigation Bank Corporation
6200 Falls of Neuse Rd.
Raleigh, NC 27609
1555 Howell Branch Road
Winter Park, Florida 32789
Prepared by:
EcoScience Corporation
612 Wade Avenue, Suite 200
Raleigh, North Carolina 27605

EcoScience
December 1998

MITIGATION BANKING INSTRUMENT"
AGREEMENT TO ESTABLISH THE
BARRA FARMS CAPE FEAR REGIONAL MITIGATION BANK
IN CUMBERLAND COUNTY, NORTH CAROLINA
1.0 PREAMBLE
This agreement made and entered into on the day of_, 199 , by Ecosystems
Land Mitigation Bank Corporation, hereinafter Sponsor, and the U.S. Army Corps of Engineers
(USACE), the U.S. Environmental Protection Agency (USEPA), the U. S. Fish and Wildlife
Service (USFWS), the North Carolina Wildlife Resources Commission (NCWRC), and the North
Carolina Division of Water Quality (NCDWQ), hereina.'Ler collectively referred to as the
Mitigation Bank Review Team (MBRT).
The purpose of this Agreement is to establish a mitigation bank designed to provide
compensatory mitigation for unavoidable wetland and stream impacts authorized by Section
404 Clean Water Act permits or Section 401 Water Quality Certifications in appropriate
circumstances.
The Sponsor is the record owner of that certain parcel of land containing approximately 623
acres located in Cumberland County, North Carolina described in the Barra Farms Cape Fear
Regional Mitigation Bank Stream and Wetland Mitigation Plan (Mitigation Plan). The
Mitigation Plan is attached hereto. The Mitigation Plan is hereto revised as described in
Exhibit A of this Banking Instrument (Supplemental Appendix to the Mitigation Plan, Response
to MBRT Comments and Revisions to the Mitigation Plan).
The agencies comprising the MBRT agree that the Bank Site is a suitable mitigation bank-site,
and that implementation of the Mitigation Plan is likely to result in net gains in wetland and
stream functions at the Bank Site.
Therefore, it is mutually agreed among the parties to this agreement that the following
provisions are adopted and will be implemented upon signature of this agreement.
Page 1 of 14
? 1
2.0 GENERAL PROVISIONS
2.1 Goals: The goal of the mitigation bank is to restore and enhance streams, riverine
wetlands, nonriverine wetlands, and their functions and values. Restoration and enhancement
activities are designed to compensate in appropriate circumstances for unavoidable wetland
and stream impacts authorized by Clean Water Act permits or Water Quality Certifications in
circumstances deemed appropriate by USACE or NCDWQ after consultation with members
of the MBRT.
2.2 Additions to the Bank Site: The Sponsor may request the addition of adjacent lands to
the Bank Sit Such a request shall be accompanied by a Site-Specific Qestoration Plan which
follows the general format of the Mitigation Plan and depicts the location and describes the
hydraulic interaction between the addition and the existing Bank Site. In addition, the Site-
Specific Restoration Plan shall include specific provisions concerning credit ratios, a schedule
for release of credits, financial assurances, and property disposition. The MBRT shall review
the Site-Specific Restoration Plan, request additional information if needed, and
approve/disapprove the request for addition within 90 days of submittal. In the event the
request for addition is not approved, specific modification suggestions may be provided by
the MBRT to the Sponsor. In the event of approval,-the additional area shall be deemed a
portion of the Bank Site and the contents of this agreement not inconsistent with the
approved Site-Specific Restoration Plan shall apply to that area. An updated mitigation credit
determination will subsequently be submitted which depicts the amount of credit, type of
credit, and credit release schedule generated by approved additions to the Bank Site.
2.3 Use of Credits: Use of credits from the Bank to offset wetland and stream impacts
authorized by Clean Water Act permits or Water Quality Certifications must be in compliance
with the Clean Water Act and implementing regulations, including but not limited to the
404(b)(1) Guidelines, and the National Environmental Policy Act, and all other applicable
Federal and State legislation, rules, regulations, and policies. This agreement has been
drafted following the guidelines set forth in the "Federal Guidance for the Establishment, Use,
and Operation of Mitigation Banks," 60 Fed. Rea. 58605, November 28, 1995 (Guidance).
Page 2 of 14

? i
2.4 Role of the MBRT: The MBRT shall be chaired by the representative from USACE,
Wilmin.gton District. The MBRT shall review monitoring and accounting reports more fully
described in Sections 3.3 and 4.4 below. In addition, the MBRT will review requests for
additions to the Bank (Section 2.2), or proposals for remedial actions proposed by the
Sponsor, or any of the agencies represented on the MBRT. The MBRT's role and
responsibilities are more fully set forth in Sections II.C. 3 & 6 of the Guidance. The MBRT will
work to reach consensus on its actions.
USACE, after any required notice and comment process, shall make all decisions concerning
the amount and type of compensatory mitigation to be required for unavoidable, permitted
wetly-.d and stream impacts, and whether or not the use cf credits from the Bank is
appropriate to offset those impacts.
The parties to this agreement understand that, where practicable, on-site, in-kind
compensatory mitigation is preferred, unless use of the Bank is determined by USACE to be
environmentally preferable or it is determined by USACE that practicable on-site and/or in-kind
mitigation opportunities are not available.
3.0 MITIGATION PLAN
3.1 General Description: The Bank Site is composed of approximately 623 acres (ac) of
interstream flats, former Carolina Bays, and historic stream origins which have been ditched
and drained to support agricultural and silvicultural activities. This site offers opportunities
for nonriverine wetland, riverine (riparian) wetland, and stream restoration and enhancement.
In addition, surrounding areas within the former wetland complex are available for expansion
of the Bank Site which can be phased over a period of time. A more detailed description of
the baseline conditions on the site is contained in Sections 1.0 through 4.0 of the Mitigation
Plan.
3.2 Site Modifications: The Sponsor has completed all work described in Section 5.0 of the
Mitigation Plan. Stream repair and ephemeral pool construction has been completed and ditch
flows diverted into the restored floodplain where planned. Ditches have been backfilled and
Page 3 of 14

spoil/roadway fill recontoured within the ditch corridors. Soil preparation and planting of
characteristic wetland trees has been completed. The purpose of the modifications, and the
objective of the Bank, is to re-direct the watershed into 2400 linear feet of historic stream
channel; to restore 451 acres of drained former wetlands to riverine and nonriverine wetlands,
and to enhance 172 acres of disturbed wetlands (Table 1, copied from Table 10 in the
Mitigation Plan).
3.3 Site Monitoring: The Sponsor shall monitor the Bank Site as described in Section 7.0
of the Mitigation Plan- (Monitoring Plan ) and as amended in Exhibit A (Revisions to the
Mitigation Plan). The Bank Site will be monitored for a five year period after implementation
is completed or u!-';l such time as the MBRT determines that the Success C-iteria have been
met, whichever occurs later.
The Sponsor is responsible for assuring the success of the restoration and enhancement
activities at the Bank Site, and for the overall operation and management of the Bank.
The Sponsor shall provide the reports described in Section 7.0 of the Mitigation Plan to each
member of the MBRT.
3.4 Contingency: USACE shall review said reports, and may, at any time, after consultation
with the Sponsor and the MBRT, direct the Sponsor to take remedial action at the Bank Site.
Remedial action required by USACE shall be designed to achieve the success criteria specified
in Section 7.0 of the Mitigation Plan and Exhibit A. All remedial actions required under this
paragraph shall include a schedule, which shall take into account physical and climatic
conditions.
The Sponsor shall implement any remedial measures required pursuant to the above
paragraph.
In the event the Sponsor determines that remedial action may be necessary to achieve the
required monitoring and maintenance criteria, it shall provide notice of such proposed remedial
action to all members of the MBRT. No remedial actions shall be taken without the
concurrence of USACE, in consultation with the MBRT.
Page 4 of 14
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4.0 USE OF MITIGATION CREDITS
4.1 Geographic Service Area: The Geographic Service Area (GSA) is the designated area
wherein a bank can reasonably be expected to provide appropriate compensation for impacts
to similar wetland and/or other stream or aquatic resources. The geomorphic setting of the
Bank includes nonriverine flats, nonriverine depressions, and riverine, first order blackwater
streams within the Coastal Plain region of the Cape Fear River Basin. The Bank is located in
proximity to, or on the boundary between three hydrophysiographic cataloging units depicted
on the "Hydrologic Unit Map - 1974 State of North Carolina", prepared by the U.S. Geological
Survey. Cataloging units, located within the inner Coastal Plan region of the river basin,
include 03030004, 030:1005, and 03030006 as depicted in Figure 15 of the ".litigation
Plan. These Cataloging Units support similar Coastal Plain natural communities, wetlands,
and drain into the lower Cape Fear River. Therefore, the eastern and western limits of the
service area are defined by the outer boundaries of the Cape Fear River Basin contained within
the above-listed Cataloging Units.
The southern and northern boundaries of these river sub-basins have been modified based
primarily upon 11 digit watersheds in the region. To the south, watersheds in the Wilmington
Area have been excluded due to Karst geomorphology and regional aquifer issues identified
by the MBRT. The MBRT has further restricted the service area north of Wilmington .due to
expected development patterns in the region and the potential for wetland compensatory
mitigation in proximity to these developments. To the north, the service area has been
reduced along 11 digit watershed boundaries to exclude Raleigh Belt portions of the Cape
Fear basin (Figure 15 of the Mitigation Plan). The service area is inclusive of the 11 digit
watersheds listed in Table 2.
Use of the Bank for compensatory mitigation may also be considered outside of the
designated Geographic Service Area if this option is preferable to other mitigation alternatives.
It is understood that Geographic Service Area expansion will be considered if the area of the
Bank is expanded.
Page 6 of 14
TABLE 2
ELEVEN DIGIT HYDROLOGICAL UNITS IN BARRA FARMS CAPE FEAR
REGIONAL BANK SERVICE AREA
03030006010
03030004060
03030006020
03030006090
03030004110
03030004090
03030004070
03030004080
03030004120
03030004100
03030004130
03030004140
03030006030
03030006080
03030006060
03030006040
03030006110
03030006100
03030006050
03030005020
03030006120
03030006130
03030005030
03030006140
03030004150
03030005010
4.2 Amount and Tyne of Credit: The Mitigation Plan is intended to result in the forms and
amounts, in acres, of wetland compensatory mitigation depicted in Table 1 (copied from Table
10 of the Mitigation Plan). Successful implementation of the Mitigation Plan will result in the
creation of 240 riparian (riverine) and nonriverine wetland mitigation credits. In addition,
2400 linear feet of first order, stream channel credit will be generated (Table 1).
It is anticipated by the parties to this Agreement that use of mitigation credits shall be "in-
kind"; riparian (riverine) wetland, nonriverine wetland, and first order, stream channel credits
will be used to offset riverine wetland, nonriverine wetland, and first order, stream channel
impacts.
It is anticipated by the parties to this agreement that in most cases in which USACE, after
consultation with members of the MBRT, has determined that mitigation credits from the bank
may be used to offset wetland and stream impacts authorized by Department of the Army
permits, for every acre of impact, one credit will be debited from the Bank. Deviations from
the one to one compensation ratio will be based on considerations of value of the wetlands
impacted, the severity of the impacts to wetlands, whether this compensatory mitigation is
in-kind, and physical proximity of the wetland impacts to the Bank Site.
All decisions concerning the appropriateness of using credits from the Bank to offset impacts
to waters and wetlands, as well as all decisions concerning the amount and type of such
credits to be used to offset wetland and water impacts authorized by Department of the Army
permits, shall be made by USACE, pursuant to the Clean Water Act, and implementing
regulations and guidance, after notice of any proposed use of the Bank to the members of the
MBRT, and consultation with the members of the MBRT concerning such use.
4.3 Credit Release Schedule: The credit release schedule for the Bank, as depicted in Table
3, will be based upon successful completion of the following tasks:
Page 8 of 14
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Task 1:- Task 1 entails acquisition and protection of the Bank site, completion of detailed
mitigation planning, review of plan parameters by the MBRT, and signing of the MBI.
Protective covenants, easements, and bonds on the property acceptable to the MBRT will also
be obtained. Upon completion of Task I, 15% of the wetland Bank credits will be released.
Completion of Task 1 is a prerequisite for release of any credits from the Bank, not
withstanding completion of other tasks described below.
Task 2: Task 2 includes completion of all mitigation implementation activities at the Bank.
Stream repair and ephemeral pool construction will be completed and ditch flows diverted into
the restored floodplain where plannc?. Ditches will be backfilled and spoil/roadway fill will
be recontoured within the ditch corridors. Subsequently, soil preparation and planting of
characteristic wetland trees will be completed. Documentation will be submitted to the MBRT
certifying completion of Task 2. Upon completion of Task 2, 15% of the wetland Bank
credits will be released (30% cumulative), but no stream credits.
Task 3: Task 3 involves implementation of the monitoring plan and submittal of annual
reports to the MBRT for a five year monitoring period, or until success criteria have been
fulfilled, whichever period is longer. Stream, hydrology, and vegetation sampling will be
completed towards the end of each growing season (between September 1 and October 31).
The data will be compiled and success/failure documented within the Bank. The data will be
submitted to the MBRT as an Annual Wetland Monitoring Report (AWMR). Upon submittal
of the AWMR showing that success criteria are being fulfilled, wetland credits will be released
as follows.
First AWMR (November 1998): 10% (40% cumulative)
Second AWMR (November 1999): 15% (55% cumulative)
Third AWMR (November 2000): 15% (70% cumulative)
Fourth AWMR (November 2001): 10% (80% cumulative)
Fifth AWMR (November 2002): 20% (100% cumulative)
Page 10 of 14

Credit releases for Task 3 will only occur if success criteria are fulfilled as stipulated in the
Mitigation Plan and Exhibit A. Stream credit release will begin at the end of the second year
of monitoring, assuming all success criteria are met. The released credits will be cumulative
to total 40% of the available stream credit at the end of the Second AWMR and
corresponding to the percent of wetland credit released in years 3,4, and 5 (Table 3). If
wetland or stream recovery for the applicable year is delayed (i.e. lacking wetland plants, in-
stream aquatic fauna, or hydrology), the credit will be reserved for release upon submittal of
a subsequent report which verifies restoration success.
The final credit allotment will be released upon completion of the fifth AWMR, fulfillment of
success criteria, and provisiz-.,s for dispensation/long term management of the prc. erty
acceptable to the MBRT. ECOBANK reserves the right to request an expedited release of
credits if wetland restoration success is apparent over a period of time, and success criteria
are met and exceeded.
4.4 Accounting Procedures: The Sponsor shall develop accounting procedures for
maintaining accurate records of debits made from the Bank, acceptable to the MBRT. Such
procedures shall include the generation of a report by the Sponsor showing credits used at
the time they are debited from the Bank, which the Sponsor shall provide within 30 days of
the debit to each member of the MBRT. In addition, the Sponsor shall prepare an annual
report on each anniversary of the date of execution of this agreement, showing all credits
used, and the balance of credits remaining, to each member of the MBRT, until such time as
all of the credits have been utilized, or this agreement is otherwise terminated. All reports
will identify credits debited and remaining by type of credit (e.g., nonriverine forested
wetland), and shall include for each reported debit the USACE. Action ID number for the
permit for which the credits were used. • Exhibit B comprises a sample master credit ledger
which will be used to track and report Bank debits.
5.0 PROPERTY DISPOSITION
Ownership of the Bank will reside with the Sponsor who intends to provide fee simple
transfer of the property to the appropriate land management organization as determined by
the MBRT. Fee simple transfer will occur upon completion of debiting of the Bank or the end
Page 11 of 14
t
of the monitoring period, whichever is longer. The transferee will be responsible for
maintaining the Bank in accordance with a Conservation Easement placed on the Bank Site
for perpetual protection as described in Section 8.0 of the Mitigation Plan.
6.0 FINANCIAL ASSURANCES
6.1 Monitoring and Maintenance Bonds: The Sponsor is responsible for securing adequate
construction, monitoring, and maintenance bonds as a form of financial assurance to cover
contingency actions in-the event of Bank default or failure. Construction and implementation
activities at the Bank Site were completed in January 1998; therefore, construction bonds
are no longer necessary. However, monitc ng and maintenance bonds have been obtained _
to ensure monitoring for a five year period and to ensure that contingency actions are
implemented in the event of wetland or stream restoration failure. Financial Assurance
Documents in the form of Monitoring and Maintenance Bonds are included as Exhibit C.
6.2 Management Trust Fund
A separate, long-term trust fund will be provided by the Sponsor for long-term maintenance,
management, and remedial actions acceptable to the MBRT. The trust fund will be
established upon completion of debiting of the Bank or at the end of the monitoring period,
which ever is longer.
7.0 MISCELLANEOUS
This agreement may be amended with the written consent of all the parties.
Notices, requests, and required reports shall be sent by regular mail to each of the parties at
their respective addresses provided below:
Sponsor:
Alan G. Fickett, Ph.D.
Ecosystems Land Mitigation Bank Corporation
1555 Howell Branch Road
Winter Park, Florida 32789
Page 12 of 14
USACE:
Scott McLendon
U. S. Army Corps of Engineers
Post Office Box 1890
Wilmington, NC 27889-1000
USEPA:
Kathy Matthews
Environmental Protection Agency
Atlanta Federal Center
61 Forsythe St.
Atlanta, GA 30303
USFWS:
Kevin Moody
U. S. Fish and Wildlife Service
P.O. Box 3326
Raleigh, NC 27636
NCWRC:
Bennett Wynne
North Carolina Wildlife Resources Commission
901 Laroque Ave.
Kinston, NC 28501
NCDWQ:
Mac Haupt
North Carolina Division of Water Quality
P.O. Box 29535
Raleigh, NC 27626-0535
Page 13 of 14
IN WITNESS WHEREOF, the parties hereto have executed this Agreement for
the Barra Farms Cape Fear Regional Mitigation Bank.
" (See Attached Page 14c)
Col. ng uth William L. Cox
Wilmi gton i rict Engineer Chief, Wetland Section, Wetlands
U. S. Army ps of Engineers Coastal, and Water Quality Grants
Branch, Water Management Division
U.S. Environmental Protection Agency
(See AttachedPage 14a)
John M. Hefner
Ecological Services Supervisor
U.S. Fish and Wildlife Service
(See Attached Page 14d)
Preston Howard, Jr., P.E.
Director
North Carolina Division of Water Quality
(See Attached Page 14b) ala4z-" /r:?
Frank McBride Alan G. Fickett
Director Ecosystems Land Mitigation Bank Corp.
North Carolina Wildlife Resource
Commission
Page 14 of 14
IN WITNESS WHEREOF, the parties hereto have executed this Agreement for
the Barra Farms Cape Fear Regional Mitigation Bank.
John M. Hefner
Ecological Services Supervisor
U.S. Fish and Wildlife Service
Page 14a
IN WITNESS WHEREOF, the parties hereto have executed this Agreement for
the Barra Farms Cape Fear Regional Mitigation Bank.
Frank McBride
Director
North Carolina Wildlife Resources Commission
Page 14b
IN WITNESS WHEREOF, the parties hereto have executed this Agreement for
the Barra Farms Cape Fear Regional Mitigation Bank.
William L. Cox
Chief, Wetlands Section, Wetlands,
Coastal, and Water Quality Grants
Branch, Water Management Division
U. S. Environmental Protection Agency
Page 14c
IN WITNESS WHEREOF, the parties hereto have executed this Agreement for
the Barra Farms Cape Fear Regional Mitigation Bank.
Preston Howard, Jr. P.E.
Director
North Caroline Division of Water Quality
21--1- ??
Page 14d

EXHIBIT A
SUPPLEMENTAL APPENDIX TO THE MITIGATION PLAN
RESPONSE TO MBRT COMMENTS, REVISIONS
TO THE MITIGATION PLAN, AND THE FINAL,
REVISED MONITORING PLAN _
SUPPLEMENTAL APPENDIX TO THE MITIGATION PLAN
RESPONSE TO MBRT COMMENTS AND REVISIONS TO THE MITIGATION PLAN
Barra Farms Cape Fear Regional Mitigation Bank
Cumberland County, North Carolina
Introduction
The following discussion provides responses to MBRT comments concerning the mitigation plan
for the Barra Farms Cape Fear Regional Mitigation Bank. The comment letters forwarded by the
MBRT members are attached to this document. This supplemental appendix will serve as an
addendum to the Mitigation Banking Instrument (MBI) and the Mitigation Plan. Plan parameters
enumerated in this addendum replace earlier provisions described in the Mitigation Plan.
U.S. Armv Corps of Engineers
Paragraph #2: Comment on the 18-acre, Downstream Addition to the Mitigation Bank
ECOBANK is in the process of negotiating with land owners to protect (through a conservation
easement) approximately 18 acres downstream of the Harrison Creek headwater restoration area.
This wetland area will be included as an "Addition to the Bank" as outlined in Section 2.2 of the
Mitigation Banking Instrument (MB1). The Bank Sponsor will prepare a Site-Specific Restoration
Plan for the Addition for review and approval by the MBRT. The U.S. Army Corp of Engineers,
ECOBANK and its consultants feel that this is a valuable downstream addition to the Bank and
concur that this area will likely provide 9 acres of wetland restoration credit. This addition will also
provide approximately 1900 linear feet of enhanced stream for a total of 4300 linear feet of enhanced
stream for the entire Bank. Stream enhancement credit and monitoring plans for the stream are
described in item "e" below.
a. Page 1, Section 1.0, Introduction. Reference to the 2,247-acre tract should be deleted.
Reference to the entire 2,247-acre tract is removed herein from Page 1 of the Mitigation Plan.
b. Page 19, Section 4.1.2 (Reference Groundwater Model Application and Results). This
section indicates that evapotranspiration rates decrease as the site develops into a
forested system. This statement should be revised to reflect that evapotranspiration
rates actually increase as the site develops.
This reference intends to indicate that evapotranspiration (E/T) rates decrease during successional
phases of forest development. Research indicates that E/T rates decrease from early-mid
successional stages (pocosin vegetation, 5-50 years) to late successional forested conditions.
Although E/T rates do increase in early years from cleared to early successional conditions, the
reference model compared pocosin vegetation to late successional forested conditions to predict an
average hydroperiod through successional phases relative to the reference site (late successional
forest). Hydroperiods increased significantly (22% to 40% of the growing season) as the forest
Page 1 of 7
canopy developed, in part, due to projected decreases in evapotranspiration. This would suggest that
the steady state forested sites generally remain inundated/saturated longer than pocosin sites in
Croatan soils.
C. Figure 9, Drainage Estimates. It is unclear what the central unshaded (white) portion
of the Figure signifies, would this be considered existing wetlands.
The central, unshaded area in Figure 9 (pre-restoration groundwater model) is an area which is not
sustaining accelerated groundwater withdrawal due to ditching (based on the groundwater model).
When considering only precipitation and groundwater inputs, the area may be considered existing
wetlands. However, surface water influences (stream inflows) on wetlands in this area have been lost
due to watershed diversion away from this headwater storage area and stream origin. The unshaded
area in Figure 10 (post restoration) depicts a similar situation concerning groundwater; but stream
flows will also be restored in the unshaded area.
d. Page 29, Section 5.1.3, Off-Site Drihiage Redirection. Will the shallow ditch that
prevents flooding on adjacent property owners be a maintenance concern as the ditch
fills in or becomes blocked.
The Off-Site Drainage Redirection is planned to discharge onto the mitigation site (Site) at an
elevation of 114.5 feet above MSL. Because elevations on portions of the Site are generally lower
'than 114.5 feet, the discharge path would be expected to eventually develop characteristics of an
alluvial fan at outfall(s). On the mitigation site, the shallow ditch is not expected to persist over a
relatively long period of time (5+ years). Therefore, periodic ditch maintenance within the
mitigation site is not required
Above the mitigation site, the ditch may require cleaning, as has been the case prior to mitigation
activities. If the plan is implemented at the assigned elevations, off-site ditch flows should continue
to discharge onto the Site even if the on-site, shallow ditch segment develops into an alluvial fan.
This area will be regularly evaluated during the 5-year monitoring period to assess these predictions.
e. Page 36, Section 7.2, Hydrology Success Criteria. This section should also contain
specific success criteria for the stream restoration area.
Hydrology Success Criteria for the Stream Restoration Area is incorporated into the Mitigation Plan
as described below. The revised, final monitoring plan is also attached to the end of this document
(Response to Agency Comments).
Stream Monitoring
Stream monitoring and success criteria will be established through measurement of in-stream flows,
measurement of stream geometry, and measurement of biological stream attributes.
In-stream flows will be measured through placement of two continuos monitoring stream flow
gauges. The gauges will be capable of recording velocity (ft/second) and discharge (cubic feet per
second, CFS). Discharge is typically calculated by measuring height (or depth) of the water column
and inputting the resulting cross-section. One gauge will be placed at a culvert located
approximately 300 feet below stream outfall from the Bank (Drainage Area: 2.5 mi'`). The second
Page 2 of 7
gauge will be placed within the culvert and State road crossing at the riverine wetland reference site
in Bladen Lakes State Forest (Drainage Area: 6.7 mi). The data will be reported as mean daily
flows for velocity (ft/second) and discharge (CFS) in tabular and graphic format.
Stream geometry will be measured along a fixed stream reach located in central portions of the
mitigation stream reach. The stream reach will extend for a minimum of 200 feet along the restored
channel. Annual fall monitoring will include development of a channel plan view, three channel
cross-sections, pebble counts, and a water surface profile of the channel. The data will be presented
in graphic and tabular format as summarized in the attached table. Data to be presented will include:
1) cross-sectional area; 2) bankfull width; 3) average depth; 4) average width; 5) width/depth ratio;
6) meander wavelength; 7) beltwidth; 8) water surface slope; 9) sinuosity; and 10) stream substrate
composition. The stream will subsequently be classified according to stream geometry and substrate
(Rosgen 1996). Significant changes in channel morphology will be tracked and reported by
comparing data between the reference stream and mitigation stream and by comparing data in each
successive monitoring year.
Biological stream attributes will be measured annually at the mitigation site and in the reference
wetland site between April 15 and May 15 of each year. Aquatic surveys will record
presence/absence of macro-invertebrate, reptile, amphibian, and fish species populations.
Presence/absence of species populations identified will be reported along with observations of
changes to in-stream aquatic habitat or species presence/absence over time.
Stream Success Criteria
Success criteria for stream restoration will include: 1) stream classification; 2) target mean daily
stream flows; and 3) increased stream faunal recruitment and diversity.
Stream geometry measurements will be incorporated into the Rosgen stream classification system.
The channel and flood prone area must support characteristics supporting an E, C, or DA stream type
to fulfill the success criteria.
In-stream flow measurements must indicate that the mitigation stream reach supports average annual,
mean daily flows per unit of drainage area equal to, or exceeding the average annual, mean daily
flows per unit of drainage area within the reference stream reach. Due to potential rainfall
differences within each watershed, a five percent deviation in average annual, mean daily flows
between the reference and mitigation stream reaches will be allowed by the MBRT. The reference
stream reach supports an approximate 6.7 mil drainage area while the mitigation stream reach
supports an approximate 2.5 mil drainage area (37% of reference). Therefore, average annual, mean
daily flows in the mitigation reach must equal to or exceed 32% of the average annual, mean daily
flows in reference. If the mitigation reach and/or reference reach support no measurable flow during
a drought period, fulfillment of success criteria will be based upon mean daily flows prior to, and
following the no flow condition.
Biological monitoring will indicate similar species diversity as compared to reference conditions or
an increase in species diversity towards reference conditions over time. Specifically, the type and
Page 3 of 7
number of species populations identified in the mitigation reach must be equal to, or increasing
towards, the type and number of species identified in the reference reach in each successive
monitoring year. However, because the Bank supports a developing stream reach, allowances may
be given and justified when evaluating future data.
f. Page 36, Section 7.1, Hydrology Monitoring. The plan seems to indicate that a single
hydrology success criteria will be used for all nonriverine portions of the site, however, this
section states that monitoring will be performed at intervals necessary to satisfy the hydrology
success criteria within each designated physiographic area. Please clarify this section of the
plan.
Hydrology monitoring will be performed at intervals necessary to satisfy the hydrology success
criteria within each designated physiographic area: 1) groundwater flats; 2) headwater slope; and
3) riverine floodplain. The groundwater flat and riverine floodplain will be compared directly to the
corresponding reference site.
The headwater slope area presents a more complex situation. Based on general evaluations of
Coastal Plain wetlands, these headwater slopes appear sometimes wetter than the surrounding flat
and sometimes dryer than the surrounding flat. This may be due to a number of factors; however,
slope of the groundwater table and discharge rates into ephemeral stream channels most likely play
an important role. It is our opinion that this headwater storage area may remain significantly wetter
than the adjacent groundwater flat for the first few years until ephemeral drainageways begin to
reform towards the historic stream. Subsequently, the headwater slope will begin to exhibit shorter
hydroperiods than the groundwater flat over time.
As stated in the monitoring plan, the hydrology success criteria for the headwater slope
physiographic area will be interpolated between the two adjacent systems (groundwater flats and
riverine floodplains). The success criteria for the headwater slope is expected to comprise the
average hydroperiod exhibited by reference sites for both adjacent systems (riverine floodplain and
groundwater flat).
g. Relative to comment (f.), above, what preliminary data is available relative to
groundwater fluctuation in the reference area. Please include this information in the
final plan.
Periodic sampling data for groundwater fluctuation in the groundwater flat reference area is included
as PZ 13 in Table 1 (Page 12) of the Mitigation Plan.
h. Page 37, Section 7.2, Reference Wetland Sites. Does ECOBANK have legal assurances
that the reference site located in Harrison Creek Bay will not be clear-cut or otherwise
manipulated. Unless these assurances are made we question ECOBANK's ability to
guarantee that the methods to determine hydrologic success can be carried out over the
life of the monitoring program.
Reference Wetland Sites for this project include nonriverine swamp forests in the northwestern
portion of Harrison Creek Bay and riverine swamp forests located in Bladen Lakes State Forest.
Page 4 of 7
ECOBANK has obtained verbal assurances from land owners that the reference sites will not be
clear-cut during the 5-year monitoring period. Legal assurances have not been obtained and are not
considered necessary. ECOBANK will maintain responsibility for providing reference site and
mitigation site data sufficient to defend achievement of hydrology success criteria, as outlined in the
Mitigation Plan.
i. All materials in the plan and NMI must be no larger than 81/7 ' x 14" (legal) size paper.
Graphics in the mitigation plan which are larger than 8 1/2" x 14' (legal) size will be reduced and
forwarded to the U.S. Army Corps of Engineers.
North Carolina Wildlife Resources Commission
1. Definition of up-front mitigation.
Up front mitigation has been defined in the plan as completion of all mitigation activities and
initiati. -i of the monitoring plan prior to permitted impacts.
5. Potential property dispensation to WRC.
The MBRT and WRC have considered Barra Farms for inclusion into the WRC Game Lands
Program. Public access is a critical factor in determining the tract's suitability for inclusion. The
623-acre mitigation site maintains vehicular access points along the northern and southern
boundaries of the project. Public access opportunities at these vehicular access points is currently
unknown. If areas adjacent to the current bank site are incorporated into the Bank at a later time,
additional opportunities for public access will occur. The NCWRP has agreed to hold the
conservation easement until a final determination is made for ultimate dispensation of the property.
September 11, 1998 letter
1. First order stream restoration and mitigation use.
"First order" stream designation has replaced "low order" stream references in paragraphs 1 and 2
on page 7 of the MBI. We agree that first order stream restoration at Barra Farms should be used
to mitigate for first order streams on approved projects - not for second order or larger systems. This
is a decision that will be addressed at the time of permitting between applicant and permit agencies.
2. Stream mitigation credit.
One foot of stream restoration equates to one mitigation credit. This credit request is addressed in
Table I of the MBI.
North Carolina Division of Water Ouality / North Carolina Wetland Restoration Program
1. Derivation of Credit for Stream Restoration/Enhancement.
Stream restoration credit is requested within 2400 linear feet of relict channel located at the southern
margins of the property. This system has maintained a drainage area of approximately 0.5 square
miles for several decades. The approximately 9.8 square mile watershed which historically flowed
through the stream was channelized off the property through an extensive canal network. The canal
Page 5 of 7
network reconnects into the stream system several miles below the mitigation site. This watershed
redirection routed waters to the north and west, depriving the former stream system of its source.
Since this time, sediment buildup and debris deposition has obliterated evidence of a defined stream
channel, although relic features do remain to convey intermittent flow during peak storms.
These relict features do not meet DWQ guidelines for stream designation under existing conditions.
Steve Kroger of DWQ visited the former stream in April 1997 and questioned whether this system
represents an actual stream valley. There is no distinct bed and bank; there are no pool/riffle
formations; there is no evidence of aquatic life or fisheries; there are no substrate features to suggest
perennial flow. In summary, a 0.5 square mile watershed in this region of the Coastal Plain is not
considered adequate to support a viable stream channel. This fact is depicted in the hydraulic
analysis in the Mitigation Plan.
Three options of stream mitigation are generally recognized in the region; 1) in-place modifications
Jac-at to an existing channel; and 3)
to -..-i existing stream; 2) construction of a new stream ad*
establishment of a stream where one does not currently exist. Option 3, commonly referred to as a
watershed diversion, represents the method for stream mitigation applied at Barra Farms. The
watershed for this relict floodplain is being increased from less than 0.5 square miles under existing
conditions to more than 2.5 square miles under post-mitigation conditions (a five-fold increase).
Therefore, stream restoration credit for 2400 linear feet of channel is proposed.
2. Stream Monitoring Plan
The stream monitoring plan and success criteria are described above.
3. Credit Release Schedule for Stream Credits
The credit release schedule for stream credits will follow the procedures developed by the MBRT
for wetland credit release. The revised credit release schedule for wetland and stream credit is
included in Table 3.
Page 6 of 7
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11.0 REVISED, FINAL MONITORING PLAN
The Monitoring Plan will consist of a comparison between hydrology model predictions, reference
streams and wetlands, and restoration areas on the Site. Stream restoration monitoring will be
performed through analysis of in-stream flows, stream geometry, and biological stream attributes.
Wetland monitoring will entail analysis of two primary parameters: vegetation and hydrology.
Monitoring of restoration and enhancement efforts will be performed until success criteria are
fulfilled.
1.1 HYDROLOGY MONITORING
After hydrological modifications are being performed on the site, su?cial monitoring wells will be
designed and placed in accordance with specifications in U.S. Corps of Engineers', Installing
Monitoring Wells/Piezometers in Wetlands (WRP Technical Note HY-IA-3.1, August 1993).
Monitoring wells will be set to a depth of approximately 24 inches below the soil surface.
Twenty three surficial monitoring wells (manual recording) will be installed at the Site to provide
representative coverage and flow gradients extending through each of the three physiographic
landscape areas (Figure 2). Four monitoring wells will also be placed within the reference wetland
site in similar landscape positions, where available. Three continuous recording (RDS24) wells will
also be installed on-site to provide continuous data that can be extrapolated to manual recording
devices.
Hydrological sampling will be performed on-site and within reference during the growing season (17
March to 12 November) at intervals necessary to satisfy the hydrology success criteria within the
designated physiographic area (EPA 1990). In general, the wells will be sampled weekly through
the Spring and early Summer and intermittently through the remainder of the growing season, if
needed to verify success.
1.2 HYDROLOGY SUCCESS CRITERIA
Target hydrological characteristics have been evaluated using a potential combination of three
different methods: 1) regulatory wetland hydrology criteria; 2) reference groundwater modeling; and
3) reference wetland sites.
Regulatory Wetland Hydrology Criteria
The regulatory wetland hydrology criterion requires saturation (free water) within one foot of the soil
surface for 12.5 percent of the growing season under normal climatic conditions. In some instances,
the regulatory wetland hydroperiod may extend for between 5 and 12.5% of the growing season.
Reference Groundwater Model
The reference groundwater model forecasts that the wetland hydroperiod in interior areas of the Site
will average 22% of the growing season in early successional phases. As steady state forest
conditions develop, the average wetland hydroperiod is forecast to encompass 40% of the growing
season. Over the 31 year modeling period, the annual hydroperiod fluctuated from less than 12.5%
to over 44% dependent upon rainfall patterns and successional phase. In addition, the on-site
Page 1 of 5
landscape includes diverse wetland geomorphology, especially near uplands and the stream channel,
which are not characterized by the model.
Due to wide fluctuations in modeled annual hydroperiod (<12-44+%), the groundwater model cannot
provide a specific hydrology success criteria above the regulatory criterion (12.5%) on an annual
basis. A specific success criteria such as a 22% target hydroperiod will fail in 50% of the years
sampled. A success criteria of 12.5% (the regulatory criteria) will also fail in 10% of the years
sampled in reference wetlands.
Reference Wetland Sites
Four monitoring wells will be placed in the groundwater flats reference wetland located in the
northwestern periphery of Barra Farms. Wells will be also be placed in a riverine reference wetland
in the Bushy Lake/Horse shoe Lake natural area dependent upon contact with the North Carolina
Park and Recreation Service. These wells will provide annual hydroperiods on the organic soil flat,
and riverine floodpiz?'.; physiographic areas of the Site. The headwater slope physio7aphic area may
be interpolated between the two systems. Transition zones from uplands towards the wetland interior
will not be represented. Therefore, these wells will provide comparative information on interior
wetlands only.
The hydrology success criteria for this Site will require saturation (free water) within one foot of the
soil surface for at least 50% of the hydroperiod exhibited by the reference wetland.
Based on groundwater models, average wetland hydroperiods in groundwater flats will exhibit a
steady, non-linear increase from 22% to 40% of the growing season during forest (post-farmland)
development. This trend includes a hypothetical reduction in hydraulic conductivities and a 50%
increase in surface water storage through the first 15 years of wetland development. Therefore, a
goal of 50 +/-% hydroperiods relative to reference wetlands is warranted for the five year monitoring
period. This 50% goal may not apply in non-organic soils as evapotranspiration may play a greater
role in early successional hydroperiods than surface water storage.
1.3 VEGETATION
Restoration monitoring procedures for vegetation are designed in accordance with EPA guidelines
presented in Mitigation Site Type (MiST) documentation (EPA 1990) and COE Compensatory
Hardwood Mitigation Guidelines (DOA 1993). The following presents a general discussion of the
monitoring program.
After planting has been completed in winter or early spring, an initial evaluation will be performed
to verify planting methods and to determine initial species composition and density. Supplemental
planting and additional site modifications will be implemented, if necessary.
During the first year, vegetation will receive cursory, visual evaluation on a periodic basis to
ascertain the degree of overtopping of planted elements by weeds. Subsequently, quantitative
sampling of vegetation will be performed between September 1 and October 31 after each growing
season until the vegetation success criteria is achieved.
Page 2 of 5
After planting plan implementation, 0.05 acre plots will be within each restored ecosystem type.
approximately twenty three plots will be correlated with hydrological monitoring locations to
provide point-related data on hydrological and vegetation parameters.
1.4 VEGETATION SUCCESS CRITERIA
Success criteria have been established to verify that the wetland vegetation component supports a
species composition sufficient for a jurisdictional determination. Additional success criteria are
dependent upon the density and growth of characteristic forest species. Specifically, a minimum
mean density of 320 characteristic trees/ac must be present for the five year monitoring period.
Characteristic tree species are those within the reference ecosystems, elements enumerated in the
planting plan, along with natural recruitment of sweet gum, red maple, loblolly bay, loblolly pine,
black willow, and pond pine. Softwood species) cannot comprise more than 10 percent of the 320
stem/acre requirement. In addition, at least five character tree species must be present, and no
species can comprise more than 20 percent of the 320 stem/acre total. Supplemental plantings will
be performed needed to achieve the vegetation success criteria. - -
No quantitative sampling requirements are proposed for herb and shrub assemblages as part of the
vegetation success criteria. Development of a forest canopy over several decades and restoration of
wetland hydrology will dictate the success in migration and establishment of desired wetland
understory and groundcover populations. Visual estimates of the percent cover/composition of shrub
and herbaceous species and photographic evidence will be reported for information purposes.
1.5 STREAM
Stream monitoring and success criteria will be established through measurement of in-stream flows,
measurement of stream geometry, and measurement of biological stream attributes.
In-stream flows will be measured through placement of two continuos monitoring stream flow
gauges. The gauges will be capable of recording velocity (ft/second) and discharge (cubic feet per
second, CFS). Discharge is typically calculated by measuring height (or depth) of the water column
and inputting the resulting cross-section. One gauge will be placed at a culvert located
approximately 300 feet below stream outfall from the Bank (Drainage Area: 2.5 mi2). The second
gauge will be placed within the culvert and State road crossing at the riverine wetland reference site
in Bladen Lakes State Forest (Drainage Area: 6.7 mi2). The data will be reported as mean daily
flows for velocity (ft/second) and discharge (CFS) in tabular and graphic format.
Stream geometry will be measured along a fixed stream reach located in central portions of the
mitigation stream reach. The stream reach will extend for a minimum of 200 feet along the restored
channel. Annual fall monitoring will include development of a channel plan view, three -channel
cross-sections, pebble counts, and a water surface profile of the channel. The data will be presented
in graphic and tabular format as summarized in the attached table. Data to be presented will include:
1) cross-sectional area; 2) bankfull width; 3) average depth; 4) average width; 5) width/depth ratio;
6) meander wavelength; 7) beltwidth; 8) water surface slope; 9) sinuosity; and 10) stream substrate
composition. The stream will subsequently be classified according to stream geometry and substrate
(Rosgen 1996). Significant changes in channel morphology will be tracked and reported by
Page 3 of 5
comparing data between the reference stream and mitigation stream and by comparing data in each
successive monitoring year.
Biological stream attributes will be measured annually at the mitigation site and in the reference
wetland site between April 15 and May 15 of each year. Aquatic surveys will record
presence/absence of macro-invertebrate, reptile, amphibian, and fish species populations.
Presence/absence of species populations identified will be reported along with observations of
changes to in-stream aquatic habitat or species presence/absence over time.
1.6 STREAM SUCCESS CRITERIA
Success criteria for stream restoration will include: 1) stream classification; 2) target mean daily
stream flows; and 3) increased stream faunal recruitment and diversity.
Stream geometry measurements will be incorporated into the Rosgen stream classification system.
The channel and flood prone --a must support characteristics supporting an E, C, or DA str--m type
to fulfill the success criteria.
In-stream flow measurements must indicate that the mitigation stream reach supports average annual,
mean daily flows per unit of drainage area equal to, or exceeding the average annual, mean daily
flows per unit of drainage area within the reference stream reach. Due to potential rainfall
differences within each watershed, a five percent deviation in average annual, mean daily flows
between the reference and mitigation stream reaches will be allowed by the MBRT. The reference
stream reach supports an approximate 6.7 mil drainage area while the mitigation stream reach
supports an approximate 2.5 mil drainage area (37% of reference). Therefore, average annual, mean
daily flows in the mitigation reach must equal to or exceed 32% of the average annual, mean daily
flows in reference. If the mitigation reach and/or reference reach support no measurable flow during
a drought period, fulfillment of success criteria will be based upon mean daily flows prior to, and
following the no flow condition.
Biological monitoring will indicate similar species diversity as compared to reference conditions or
an increase in species diversity towards reference conditions over time. Specifically, the type and
number of species populations identified in the mitigation reach must be equal to, or increasing
towards, the type and number of species identified in the reference reach in each successive
monitoring year. However, because the Bank supports a developing stream reach, allowances may
be given and justified when evaluating future data.
1.7 REPORT SUBMITTAL
Documentation will be submitted to the MBRT certifying completion of implementation activities.
Any changes to this mitigation plan will be described in this documentation. The document will be
provided within 60 days of completion of all work at the Site.
Subsequently, reports will be submitted yearly to the MBRT following each assessment. Reports
will document the sample transect locations, along with photographs which illustrate site conditions.
Page 4 of 5
Surficial well data will be presented in tabular/graphic format. The duration of wetland hydrology
during the growing season will be calculated at each well, within each on-site physiographic area,
and within the reference wetland site.
The survival and density of planted tree stock will be reported. In addition, characteristic tree
species mean density and average height as formatted in the Vegetation Success Criteria will be
calculated. Estimates and photographic evidence of the relative percent cover of understory and
groundcover species will be generated.
1.8 CONTINGENCY
In the event that vegetation or hydrology success criteria are not fulfilled, a mechanism for
contingency will be implemented. For vegetation contingency, replanting and extended monitoring
periods will be implemented if community restoration does not fulfill minimum species density and
distribution requirements.
Hydrological contingency will require consultation with hydrologists and regulatory agencies if
wetland hydrology restoration is not achieved during the monitoring period. Recommendations for
contingency to establish wetland hydrology will be implemented and monitored until the Hydrology
Success Criteria are achieved. Performance bonds have been established to guarantee fiscal
resources for remediation.
Page 5 of 5
EXHIBIT B
SAMPLE MASTER CREDIT LEDGER

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EXHIBIT C
MONITORING AND MAINTENANCE BOND
DOCUMENTATION
MITIGATION MONITORING/MAINTENANCE
PERFORMANCE BOND
Date bond executed:
Effective date:
Principal: Ecosystems Land Mitigation Bank Corporation
1555 Howell Branch Road. Winter Park Florida 32789
Type of Organization: Individual
Joint Venture
Partnership
X Corporation
State of Incorporation: Florida
Surety(ies): Cumberland Casual & Surety Co=anv
4311 West Waters Avenue. Suite 401
Tampa. Florida 33614
Scope of Coverage: Task 3 of the Cape Fear Mitigation Banking Instrument ("MBI") for the Barra
Farms property in Cumberland County, North Carolina ("Mitigation Project").
Total penal sum of bond: $100,000.00
Surety's Bond Number: XXXXXO
KNOW ALL PERSONS BY THESE PRESENTS, That we, the Principal and Surety(ies)
hereto are firmly bound to the United States Army Corps of Engineers ("USACE")/State of North
Carolina Department of Environment and Natural Resources - Wet Lands Restoration Program,
Division of Water Quality ("DENR") in the above penal sum for the payment of which we bind
ourselves, our heirs, executors, administrators, successors, and assigns jointly and severally;
provided that, where the Sureties are corporations acting as co-sureties, we, the Sureties, bind
ourselves in such sum "jointly and severally" only for the purpose of allowing a joint action or
actions against any or all of us, and for all other purposes each Surety binds itself, jointly and
severally with the Principal, for the payment of such sum only as is set forth opposite the name
of such Surety, but if no limit of liability is indicated, the limit of liability shall be full amount of
the penal sum.
Rev. 1.8 (9/22/98)
WHEREAS, said Principal is required to provide financial assurance for Task 3 of the
MBI or the Mitigation Project as farther described in the scope of coverage above, and
WHEREAS, said Principal shall establish a standby trust fund as is required when a surety
bond is used to provide such financial assurance;
NOW, THEREFORE, the conditions of the obligation are such that if the Principal shall
faithfully perform completion of Task 3 of the Mitigation Project as further described in the scope
of coverage herein, for which this bond guarantees completion, in accordance with the MBI as
such may be amended, pursuant to all applicable laws, statutes, rules, and regulations, as such
laws, statutes, rules and regulations may be amended;
Or, if the Principal shall provide alternate financial assurance and obtain the
USACE/DENR's written approval of such assurance within 90 days after the date notice of
cancellation is received by both the Principal and the USACE/DENR from the Surety(ies), then
this obligation shall be null and void, otherwise it is to remain in full force and effect.
Such obligation does not apply to any of the following:
(a) Any obligation of Ecosystems Land Mitigation Bank Corporation under a
workers' compensation, disability benefits, or employment compensation
law or other similar law;
(b) Bodily injury to an employee of Ecosystems Land Mitigation Bank
Corporation arising from, and in the course of, employment by Ecosystems
Land Mitigation Bank Corporation;
(c) Bodily injury or property damage arising from the ownership, maintenance,
use of, or entrustment to others of any aircraft, motor vehicle, or
watercraft;
(d) Property damage to any property owned, rented, loan to, in the care,
custody, or control of, occupied by Ecosystems Land Mitigation Bank
Corporation that is not the direct result of a construction or implementation
activity for the MBL
(e) Bodily injury or property damage for which Ecosystems Land Mitigation
Bank Corporation is obligated to pay damages by reason of the assumption
of liability in a contract or agreement other than a contract or agreement
entered into to meet the requirements of the NMI.
The Surety(ies) shall become liable on this bond obligation only when the Principal has
failed to fulfill the conditions described above.
Rev. 1.8 (9/22/98) 2
Upon notification by the USACE/DENR that the Principal has been found in violation of
the requirements of MBI for completion of Task 3 of the Mitigation Project for which this bond
guarantees performance, the Surety(ies) shall within sixty (60) days of receiving such notice either
perform completion in accordance with the NMI and pursuant to the written directions of the
USACE/DENR or place the bond amount guaranteed for Task 3 of the Mitigation Project into the
standby trust fiend as directed by the DENR.
Upon notification by the USACE/DENR that the Principal has failed to provide alternate
financial assurance and obtain written approval of such assurance from the USACE/DENR during
the 90 days following receipt, by both the Principal and the USACE/DENR, of a notice of
cancellation of the bond, the Surety(ies) shall place funds in the total penal sum of this bond
guaranteed for the completion of Task 3 of the Mitigation Project in accordance with the MBI into
the standby trust fund as directed by the DENR.
The Surety(ies) hereby waive(s) notification of amendments to the MBI permits, applicable
laws, statutes, rules and regulation and agrees that no such amendment shall in any way alleviate
its (their) obligation on this bond.
The Liability of the Surety(ies) shall not be discharged by any payment or succession of
payments hereunder, unless and until such payment or payments shall amount in the aggregate to
the penal sum of the bond, but in no event shall the obligation of the Surety(ies) hereunder exceed
the amount of said penal sum.
The Surety(ies) may cancel the bond by sending notice of cancellation by certified mail to
the Principal and the USACE/DENR; provided, however that cancellation shall not occur during
the 120 days beginning on the date of receipt of the notice of cancellation by both the Principal
and the USACE/DENR, as evidence by the return receipts.
The Principal may terminate this bond by sending written notice to the Surety(ies);
provided, however, that no such notice shall become effective until the Surety(ies) receive(s)
written authorization for termination of the bond by the USACE/DENR.
Principal and Surety(ies) hereby agree to adjust the penal sum of the bond yearly so that
it guarantees increased or decreased completion costs provided that no decrease in the penal sum
takes place without the written permission of the USACE/DENR.
Rev. 1.8 (9/22/98) 3

-IN WITNESS WHEREOF, the Principal and Surety(ies) have executed this Performance
Bond and have affixed their seals on the date set forth above.
The persons whose signatures appear below hereby certify that they are authorized to
execute this surety bond on behalf of the Principal and Surety(ies).
PRINCIPAL
ECOSYSTEMS LAND MITIGATION
BANK CORPORATION
Bv:
D. Miller McCarthy, President
CORPORATE SURETY(IES)
CUMBERLAND CASUALTY & SURETY
COMPANY
By:
Edward J. Edenfield IV, President
4311 West Waters Avenue, Suite 401
Tampa, Florida 33614
Florida
(Corporate Seal)
Rev. 1.8 (9/22/98)
State of Incorporation
Liability Limit: $100.000.00
4
(Corporate Seal)

MITIGATION BANK STANDBY TRUST FUND AGREEMENT
TO DEMONSTRATE MONITORING /MAINTENANCE
FINANCIAL ASSURANCE
TRUST AGREEMENT, the "Agreement," entered into as of
by and
Date
between Ecosystems Land Mitigation Bak Corporation
Name of the Owner or Operator
a Florida Corporation (the Grantor,)
Name of State Insert "corporation, partnership association, orproprietorship ",
and SouthTrust Asset Management Co=any-of Florida N.A.
Name and Address of Corporate Trustee
a National Bak (the Trustee.)
Insert "incorporated in the state of "or" a national bank"
WHEREAS, Grantor is the owner of certain real property in Cumberland County, North
Carolina, and has received from the United States Army Corps of Engineers ("USACE")/State of
North Carolina Department of Environment and Natural Resources - Wet Lands Restoration
Program, Division of Water Quality ("DENR") that Mitigation Banking Instrument ("MBI")
Number ("Permit") which authorizes the construction, operation and
implementation of a wetland mitigation bank known as Cape Fear Mitigation Bank.
WHEREAS, the USACE/DENR, have established certain regulations applicable to the
Grantor, requiring that an owner of a wetland mitigation bank provide assurance that fiends will
be available when needed for the monitoring and maintenance of this mitigation bank if Grantor
fails to monitor and maintain this mitigation bank pursuant to the terms of the above referenced
permit.
WHEREAS, the Grantor has elected to establish a performance bond to provide such financial
assurance for the monitoring and maintenance of the mitigation bank identified herein and is
requested to establish a standby trust fund able to accept payments from the performance bond.
WHEREAS, the Grantor, acting through its duly authorized officers, has selected the Trustee
to be the trustee under this agreement, and the Trustee is willing to act as trustee,
NOW, THEREFORE, the Grantor and the Trustee agree as follows:
Section-1. e i ' i . As used in this Agreement:
(a) The term "Grantor" means Ecosystems Land Mitigation Bank Corporation who enters into
this Agreement and any successors or assigns of the Grantor.
(b) The term "Trustee" means SouthTrust Asset Management Company of Florida, N.A., the
Trustee who enters into this Agreement and any successor Trustee.
Rev. 1.4 (9/22/98)
(c) , 's'he term "USACE/DENR" means the United States Army Corps of Engineers and the
North Carolina Department of Environment and Natural Resources - Wet Lands
Restoration Program, Division of Water Quality or any successor thereof.
Section 2. Identification of Facilities and Cost Estimates. This Agreement pertains to the
Facilities and cost estimates identified on attached Schedule A.
Section . Standby Trust. This Trust shall remain dormant until funded with the proceeds
from the Surety Bond as listed on
Insert "Letter of Credit" or "Surety Bond"
Schedule B. The Trustee shall have no duties or responsibilities beyond safekeeping this
Document. Upon funding this Trust shall become active and be administered pursuant to the terms
of this instrument.
Section 4. Establishment of Fund. The Grantor and the Trustee hereby establish a trust fund
(the Fund), for the benefit of the DENR. The Grantor and the Trustee intend that no third party
have access to the Fund except as herein provided. The Fund is established initially as a standby
to receive payments and shall not consist of any property. Payments made by the provider of the
Surety Bond listed on Schedule B pursuant to the DENR's instructions are transferred to the
Trustee and are referred to as the Fund, together with all earnings and profits thereon, less any
payments or distributions made by the Trustee pursuant to this Agreement. The Fund shall be held
by the Trustee, IN TRUST, as hereinafter provided. The Trustee shall not be responsible nor shall
it undertake any responsibility for the amount or adequacy of, nor any duty to collect from the
Grantor, any payments necessary to discharge any liabilities of the Grantor established by the
DENR.
Section 5. Payment for Completing Monitoring and Maintenance. The Trustee shall make
payments from the Fund as the Director of the DENR's Division of Water Quality shall direct,
in writing, to provide for the payment of the costs of completing monitoring and maintenance of
Task 3 - Cape Fear Mitigation Banking Instrument including any modifications or amendments
to that Banking Instrument. The Trustee shall reimburse such persons as specified by the DENR
from the Fund for monitoring and maintenance expenditures in such amounts as the DENR shall
direct in writing. In addition, the Trustee shall refund to the Grantor such amounts as the DENR
specifies in writing. Upon refund, such funds shall no longer constitute part of the Fund as defined
herein.
The Fund may not be drawn upon to cover any of the following:
(a) Any obligation of Ecosystems Land Mitigation Bank Corporation under a workers'
compensation, disability benefits, or unemployment compensation law or other similar
law;
(b) Bodily injury to an employee of Ecosystems Land Mitigation Bank Corporation arising
from, and in the course of employment by Ecosystems Land Mitigation Bank Corporation;
2
(c) Bodily injury or property damage arising from the ownership, maintenance, use, or
entrustment to others of any aircraft, motor vehicle, or watercraft;
(d) Property damage to any property owned, rented, loaned to, in the care, custody, or control
of, or occupied by Ecosystems Land Mitigation Bank Corporation that is not the direct
result of the monitoring and maintenance of the mitigation bank;
(e) Bodily injury or property damage for which Ecosystems Land Mitigation Bank Corporation
is obligated to pay damages by reason of the assumption of liability in a contract or
agreement other than a contract or agreement entered into to meet the requirements of
USACE Mitigation Banking Instrument.
Section . Payments Comprising the Fund. Payments made to the Trustee for the Fund shall
consist of cash or securities acceptable to the Trustee and shall consist solely of proceeds from the
Surety Bond
Insert "Letter of Credit" or "Surety Bond".
Section 7. Trustee Management. The Trustee shall invest and reinvest the principal and
income of the Fund and keep the Fund invested as a single fund, without distinction between
principal and income, in accordance with general investment policies and guidelines which the
Grantor may communicate in writing to the Trustee from time to time, subject, however, to the
provisions of this Section. In investing, reinvesting, exchanging, selling, and managing the Fund,
the Trustee shall discharge his duties with respect to the trust fund solely in the interest of the
beneficiary and with the care, skill, prudence, and diligence under the circumstances then
prevailing which persons of prudence, acting in a like capacity and familiar with such matters,
would use in the conduct of an enterprise of a like character and with like aims; except that:
(a) Securities or other obligations of the Grantor, or any other owner or operator of the
mitigation bank, or any of their affiliates as defined in the Investment Company Act of
1940, as amended, 15 U.S.C. 80a-2.(a), shall not be acquired or held, unless they are
securities or other obligations of the Federal or a State government;
(b) The Trustee is authorized to invest the Fund in time or demand deposits of the Trustee, to
the extent insured by an agency of the Federal or a State government; and
(c) The Trustee is authorized to hold cash awaiting investment or distribution uninvested for
a reasonable time and without liability for the payment of interest thereon.
e ti . Commin Ding and Investment. The Trustee is expressly authorized in its discretion:
(a) To transfer from time to time any or all of the assets of the Fund to any common,
commingled, or collective trust fund created by the Trustee in which the Fund is eligible
to participate, subject to all of the provisions thereof, to be commingled with the assets of
other trusts participating therein; and
Rev. 1.4 (9122/98) 3
('b) To purchase shares in any investment company registered under the Investment Company
Act of 1940,15 U.S.C. 80a-1 et seq., including one which may be created, managed,
underwritten, or to which investment advice is rendered or the shares of which are sold by
the Trustee. The Trustee may vote such shares in its discretion.
Section . apress Power of Trustee. Without in any way limiting the powers and discretion
conferred upon the Trustee by the other provisions of this Agreement or by law, the Trustee is
expressly authorized and empowered:
(a) To sell, exchange, convey, transfer, or otherwise dispose of any property held by it, by
public or private sale. No person dealing with the Trustee shall be bound to see to the
application of the-purchase money or to inquire into the validity or expediency of any such
sale or other disposition;
(b; To make, execute, acknowledge, and deliver any and Lid documents of transfer and
conveyance and any and all other instruments that may be necessary or appropriate to carry
out the powers herein granted;
(c) To register any securities held in the Fund in its own name or in the name of a nominee
and to hold any security in bearer form or in book entry, or to combine certificates
representing such securities with certificates of the same issue held by the Trustee in other
fiduciary capacities, or to deposit or arrange for the deposit of such securities in a qualified
central depository even though, when so deposited, such securities may be merged and
held in bulk in the name of the nominee of such depository with other securities deposited
therein by another person, or to deposit or arrange for the deposit of any securities issued
by the United States Government, or any agency or instrumentality thereof, with a Federal
Reserve bank, but the books and records of the Trustee shall at all times show that all such
securities are part of the Fund;
(d) To deposit any cash in the Fund in interest-bearing accounts maintained or savings
certificates issued by the Trustee, in its separate corporate capacity, or in any other
banking institution affiliated with the Trustee, to the extent insured by an agency of the
Federal or a State government; and
(e) To compromise or otherwise adjust all claims in favor of or against the Fund.
Section 10. Taxes and =erases. All taxes of any kind that may be assessed or levied against
or in respect of the Fund and all brokerage commissions incurred by the Fund shall be paid from
the Fund. All other expenses incurred by the Trustee in connection with the administration of this
Trust, including fees for legal services rendered to the Trustee, the compensation of the Trustee
to the extent not paid directly by the Grantor, and all other proper charges and disbursements of
the Trustee shall be paid from the Fund.
Section 11. Annual Valuation. The Trust shall annually, at least 30 days prior to the
anniversary date of establishment of the Fund, furnish to the Grantor and to the USACE/DENR
Rev. 1.4 (9/22/98)
4
a staternent confirming the value of the Trust. Any securities in the Fund shall be valued at market
value as of no more than 60 days prior to the anniversary date of establishment of the fund. The
failure of the Grantor to object in writing to the Trustee within 90 days after the statement has
been furnished to the Grantor and the USACE/DENR shall constitute a conclusively binding assent
by the Grantor, barring the Grantor from asserting any claim or liability against the Trustee with
respect to matters disclosed in the statement.
Section 2. Advice of Counsel. The Trustee may from time to time consult with counsel, who
may be counsel to the Grantor, with respect to any question arising as to the monitoring of this
Agreement or any action to be taken hereunder. The Trustee shall be fully protected, to the extent
permitted by law, in acting upon the advice of counsel.
Section-12. Trustee Compensation. The Trustee is authorized to charge against the principal
of the Trust its published Trust fee schedule in effect at the time services are rendered.
Section 14. Successor Trustee. The Trustee may resign or the Grantor may replace the
Trustee, but such resignation or replacement shall not be effective until the Grantor has appointed
a successor Trustee, the successor Trustee is approved by the USACE/DENR, and this successor
accepts the appointment. The successor trustee shall have the same powers and duties as those
conferred upon the Trustee hereunder. Upon the successor trustee's acceptance of the appointment,
the Trustee shall assign, transfer, and pay over to the successor trustee the funds and properties
then constituting the Fund. If for any reason the Grantor cannot or does not act in the event of the
resignation of the Trustee, the Trustee may apply to a court of competent jurisdiction for the
appointment of a successor trustee or for instructions. The Trustee shall notify the USACE/DENR
in writing of such event. The successor trustee shall specify the date on which it assumes
administration of the trust in a writing sent to the Grantor, USACE/DENR, and the present
Trustee by certified mail 10 days before such change becomes effective. Any expenses incurred
by the Trustee as a result of any of the acts contemplated by this Section shall be paid as provided
in Section 10.
ecti n . Instructions to the Trustee. All orders, requests, and instructions by the Grantor
to the Trustee shall be in writing, signed by such persons as are designated in the attached Exhibit
A or such other designees as the Grantor may designate by amendment to Exhibit A The Trustee
shall be fully protected in acting without inquiry in accordance with the Grantor's orders, requests, .
and instructions. All orders, requests, and instructions by the DENR to the Trustee shall be in
writing, signed by the DENR's Division Director of Water Quality, or the designee, and the
Trustee shall act and shall be fully protected in acting in accordance with such orders, requests,
and instructions. The Trustee shall have the right to assume, in the absence of written notice to
the contrary, that no event constituting a change or a termination of the authority of any person
to act on behalf of the Grantor or the DENR hereunder has occurred. The Trustee shall have no
duty to act in the absence of such orders, requests, and instructions from the Grantor and/or the
DENR, except as provided for herein.
Rev. 1.4 (9/22198) 5
, ec jon 16. Amendment of Agreement. This Agreement may be amended by aL1 instrument in
writing executed by the Grantor, the Trustee, and the USACE/DENR, or by the Trustee and the
USACE/DENR if the Grantor ceases to exist.
Section 17. Irrevocability and Termination. Subject to the right of the parties to amend this
Agreement as provided in Section 16, this Trust shall be irrevocable and shall continue until
terminated at the written agreement of the Grantor, the Trustee, and the USACE/DENR, or by
the Trustee and the USACE/DENR, if the Grantor ceases to exist. Upon termination of the Trust,
all remaining trust property, less final trust administration expenses, shall be delivered pursuant
to the written agreement terminating the Trust
Section 1L. Immunity and Indemnification. The Trustee shall not incur personal liability of any
nature in connection with any act or omission, made in good faith, in the administration of this
Trust, or in carrying out any directions by the Grantor or the USACE/DENR issued in accordance
with this Agimcment. The Trustee shall be indemnified and saved harmless ay the Grantor or from
the Trust Fund, or both, from and against any personal liability to which the Trustee may be
subjected by reason of any act or conduct in its official capacity, including all expenses reasonably
incurred in its defense in the event the Grantor fails to provide such defense.
Section . Choice of Law. This Agreement shall be administered, construed, and enforced
according to the laws of the State of Florida.
Section . Interpretation. As used in this Agreement, words in the singular include the plural
and words in the plural include the singular. The descriptive headings for each Section of this
Agreement shall not affect the interpretation or the legal efficacy of this Agreement.
Rev. 1.4 (9/22/98) 6
. IN WITNESS WHEREOF the parties have caused this Agreement to be executed by their
respective officers duly authorized and their corporate seals to be hereunto affixed and attested as
of the date first above written.
ATTEST GRANTOR
ECOSYSTEMS LAND MITIGATION
BANK CORPORATION
Bv:
Signature D. Miller McCarthy, President
(CORPORATE SEAL)
ATTEST TRUSTEE
SOUTIMUST ASSET MANAGEMENT
COMPANY OF FLORIDA, N.A.
By:
Signature
(CORPORATE SEAL)
Rev. 1.4 (9/22/98) 7
l
: NOTARY ACKNOWLEDGMENT OF GRANTOR'S SIGNATURE
STATE OF FLORIDA
COUNTY OF ORANGE
On this _ day of 1998, personally appeared D. Miller McCarthy, who being
by me duly sworn, acknowledged said instrument to be his free act and deed. Mr. McCarthy is
personally known to me, or has produced her (state) driver's license
bearing number
IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal.
Signature
Printed Name
(NOTARIAL SEAL) NOTARY PUBLIC, STATE OF
Commission expiration date
Serial Number, If any
NOTARY ACKNOWLEDGMENT OF TRUSTEE'S SIGNATURE
STATE OF FLORIDA
COUNTY OF PINELLAS
. On this _ day of 1998, personally appeared ,
who being by me duly sworn, acknowledged said instrument to be his/her free act and deed.
is personally known to me, or has produced his/her
(state) driver's license bearing number
IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal.
Signature
Printed Name
(NOTARIAL SEAL) NOTARY PUBLIC, STATE OF
Commission expiration date
Serial Number, If any
Rev. 1.4 (9/22/98) 8
I `
SCHEDULE A
MBI Permit Number: 199506135 (IP-ME)
Name: Task -Cape Fear Mitigation Banking Instrument
Address: Cumberland County
North Carolina
Task 3
Monitoring and Maintenance
Care Cost Estimates:

Rev. 1.4 (9/22/98)
9
r SCHEDULE B
Descril2tion Bond Number
Mitigation Bank Monitoring/
Maintenance Performance Bond
Rev. 1.4 (9122/98) 10
.. p

IT A
Designated Person: D. Miller McCarthy
Ecosystems Land Mitigation Bank Corporation
1555 Howell Branch Road
Suite C-200
Winter Park, Florida 32789
Rev. 1.4 (9/22/98).
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MITIGATION BANKING INSTRUMENT
AGREEMENT TO ESTABLISH THE
BARRA FARMS CAPE FEAR REGIONAL MITIGATION BANK
IN CUMBERLAND COUNTY, NORTH CAROLINA
Prepared for:
Ecosystems Land Mitigation Bank Corporation
6200 Falls of Neuse Rd.
Raleigh, NC 27609
1555 Howell Branch Road
Winter Park, Florida 32789
Prepared by:
EcoScience Corporation
612 Wade Avenue, Suite 200
Raleigh, North Carolina 27605
EcoScience
December 1998

MITIGATION BANKING INSTRUMENT
' AGREEMENT TO ESTABLISH THE
BARRA FARMS CAPE FEAR REGIONAL MITIGATION BANK
IN CUMBERLAND COUNTY, NORTH CAROLINA
' 1.0 PREAMBLE
This agreement made and entered into on the day of , 199_, by Ecosystems
' Land Mitigation Bank Corporation, hereinafter Sponsor, and the U.S. Army Corps of Engineers
(USACE), the U.S. Environmental Protection Agency (USEPA), the U. S. Fish and Wildlife
' Service (USFWS), the North Carolina Wildlife Resources Commission (NCWRC), and the North
Carolina Division of Water Quality (NCG - Q), hereinafter collectively referred to as the
' Mitigation Bank Review Team (MBRT).
The purpose of this Agreement is to establish a mitigation bank designed to provide
' compensatory mitigation for unavoidable wetland and stream impacts authorized by Section
404 Clean Water Act permits or Section 401 Water Quality Certifications in appropriate
' circumstances.
' The Sponsor is the record owner of that certain parcel of land containing approximately 623
acres located in Cumberland County, North Carolina described in the Barra Farms Cape Fear
' Regional Mitigation Bank Stream and Wetland Mitigation Plan (Mitigation Plan). The
Mitigation Plan is attached hereto. The Mitigation Plan is hereto revised as described in
' Exhibit A of this Banking Instrument (Supplemental Appendix to the Mitigation Plan, Response
to MBRT Comments and Revisions to the Mitigation Plan).
The agencies comprising the MBRT agree that the Bank Site is a suitable mitigation bank site,
' and that implementation of the Mitigation Plan is likely to result in net gains in wetland and
stream functions at the Bank Site.
Therefore, it is mutually agreed among the parties to this agreement that the following
provisions are adopted and will be implemented upon signature of this agreement.
' Page 1 of 14

F

11
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2.0 GENERAL PROVISIONS
' 2.1 Goals: The goal of the mitigation bank is to restore and enhance streams, riverine
wetlands, nonriverine wetlands, and their functions and values. Restoration and enhancement
' activities are designed to compensate in appropriate circumstances for unavoidable wetland
and stream impacts authorized by Clean Water Act permits or Water Quality Certifications in
' circumstances deemed appropriate by USACE or NCDWQ after consultation with members
of the MBRT.
2.2 Additions to the Bank Site: The Sponsor may request the addition of adjacent lands to
' the Bank Site. Such a re7,uest shall be accompanied by a Site-Specific Restoratior. °lan which
follows the general format of the Mitigation Plan and depicts the location and describes the
' hydraulic interaction between the addition and the existing Bank Site. In addition, the Site-
Specific Restoration Plan shall include specific provisions concerning credit ratios, a schedule
for release of credits, financial assurances, and property disposition. The MBRT shall review
the Site-Specific Restoration Plan, request additional information if needed, and
' approve/disapprove the request for addition within 90 days of submittal. In the event the
request for addition is not approved, specific modification suggestions may be provided by
' the MBRT to the Sponsor. In the event of approval, the additional area shall be deemed a
portion of the Bank Site and the contents of this agreement not inconsistent with the
' approved Site-Specific Restoration Plan shall apply to that area. An updated mitigation credit
determination will subsequently be submitted which depicts the amount of credit, type of
' credit, and credit release schedule generated by approved additions to the Bank Site.
' 2.3 Use of Credits: Use of credits from the Bank to offset wetland and stream impacts
authorized by Clean Water Act permits or Water Quality Certifications must be in compliance
' with the Clean Water Act and implementing regulations, including but not limited to the
404(b)(1) Guidelines, and the National Environmental Policy Act, and all other applicable
' Federal and State legislation, rules, regulations, and policies. This agreement has been
drafted following the guidelines set forth in the "Federal Guidance for the Establishment, Use,
' and Operation of Mitigation Banks," 60 Fed. Rea. 58605, November 28, 1995 (Guidance).
Page 2 of 14
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2.4 Role of the MBRT: The MBRT shall be chaired by the representative from USACE,
' Wilmington District. The MBRT shall review monitoring and accounting reports more fully
described in Sections 3.3 and 4.4 below. In addition, the MBRT will review requests for
' additions to the Bank (Section 2.2), or proposals for remedial actions proposed by the
Sponsor, or any of the agencies represented on the MBRT. The MBRT's role and
' responsibilities are more fully set forth in Sections II.C. 3 & 6 of the Guidance. The MBRT will
work to reach consensus on its actions.
' USACE, after any required notice and comment process, shall make all decisions concerning
the amount and type of compensatory mitigation to be required for unavoidable, permitted
' wetland and stream impacts, and whether or, of the use of credits from the Bank is
appropriate to offset those impacts.
The parties to this agreement understand that, where practicable, on-site, in-kind
compensatory mitigation is preferred, unless use of the Bank is determined by USACE to be
environmentally preferable or it is determined by USACE that practicable on-site and/or in-kind
' mitigation opportunities are not available.
3.0 MITIGATION PLAN
3.1 General Description: The Bank Site is composed of approximately 623 acres (ac) of
interstream flats, former Carolina Bays, and historic stream origins which have been ditched
' and drained to support agricultural and silvicultural activities. This site offers opportunities
for nonriverine wetland, riverine (riparian) wetland, and stream restoration and enhancement.
' In addition, surrounding areas within the former wetland complex are available for expansion
of the Bank Site which can be phased over a period of time. A more detailed description of
' the baseline conditions on the site is contained in Sections 1.0 through 4.0 of the Mitigation
Plan.
3.2 Site Modifications: The Sponsor has completed all work described in Section 5.0 of the
' Mitigation Plan. Stream repair and ephemeral pool construction has been completed and ditch
flows diverted into the restored floodplain where planned. Ditches have been backfilled and
Page 3 of 14
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spoil/roadway fill recontoured within the ditch corridors. Soil preparation and planting of
characteristic wetland trees has been completed. The purpose of the modifications, and the
objective of the Bank, is to re-direct the watershed into 2400 linear feet of historic stream
channel; to restore 451 acres of drained former wetlands to riverine and nonriverine wetlands,
and to enhance 172 acres of disturbed wetlands (Table 1, copied from Table 10 in the
Mitigation Plan).
3.3 Site Monitoring: The Sponsor shall monitor the Bank Site as described in Section 7.0
of the Mitigation Plan. (Monitoring Plan ) and as amended in Exhibit A (Revisions to the
Mitigation Plan). The Bank Site will be monitored for a five year period after implementation
is completed or until such time ?-s the MBRT determines that the Success Criteria have !,-en
met, whichever occurs later.
The Sponsor is responsible for assuring the success of the restoration and enhancement
activities at the Bank Site, and for the overall operation and management of the Bank.
The Sponsor shall provide the reports described in Section 7.0 of the Mitigation Plan to each
member of the MBRT.
3.4 Contingency: USACE shall review said reports, and may, at any time, after consultation
with the Sponsor and the MBRT, direct the Sponsor to take remedial action at the Bank Site.
Remedial action required by USACE shall be designed to achieve the success criteria specified
in Section 7.0 of the Mitigation Plan and Exhibit A. All remedial actions required under this
paragraph shall include a schedule, which shall take into account physical and climatic
conditions.
The Sponsor shall implement any remedial measures required pursuant to the above
paragraph.

In the event the Sponsor determines that remedial action may be necessary to achieve the
required monitoring and maintenance criteria, it shall provide notice of such proposed remedial
action to all members of the MBRT. No remedial actions shall be taken without the
concurrence of USACE, in consultation with the MBRT.
Page 4 of 14

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4.0 USE OF MITIGATION CREDITS
4.1 Geographic Service Area: The Geographic Service Area (GSA) is the designated area
wherein a bank can reasonably be expected to provide appropriate compensation for impacts
to similar wetland and/or other stream or aquatic resources. The geomorphic setting of the
Bank includes nonriverine flats, nonriverine depressions, and riverine, first order blackwater
streams within the Coastal Plain region of the Cape Fear River Basin. The Bank is located in
proximity to, or on the boundary between three hydrophysiographic cataloging units depicted
on the "Hydrologic Unit Map - 1974 State of North Carolina", prepared by the U.S. Geological
Survey. Cataloging units, located within the inner Coastal Plan region of the river basin,
include 03030004, 03030005, and-3030006 as depicted in Figure 15 of the Mitigation-
Plan. These Cataloging Units support similar Coastal Plain natural communities, wetlands,
and drain into the lower Cape Fear River. Therefore, the eastern and western limits of the
service area are defined by the outer boundaries of the Cape Fear River Basin contained within
the above-listed Cataloging Units.
The southern and northern boundaries of these river sub-basins have been modified based
primarily upon 11 digit watersheds in the region. To the south, watersheds in the Wilmington
Area have been excluded due to Karst geomorphology and regional aquifer issues identified
by the MBRT. The MBRT has further restricted the service area north of Wilmington due to
expected development patterns in the region and the potential for wetland compensatory
mitigation in proximity to these developments. To the north, the service area has been
reduced along 11 digit watershed boundaries to exclude Raleigh Belt portions of the Cape
Fear basin (Figure 15 of the Mitigation Plan). The service area is inclusive of the 11 digit
watersheds listed in Table 2.
Use of the Bank for compensatory mitigation may also be considered outside of the
designated Geographic Service Area if this option is preferable to other mitigation alternatives.
It is understood that Geographic Service Area expansion will be considered if the area of the
Bank is expanded.
Page 6 of 14

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' TABLE 2
ELEVEN DIGIT HYDROLOGICAL UNITS IN BARRA FARMS CAPE FEAR
' REGIONAL BANK SERVICE AREA
' 03030006010
03030004060
03030006020
03030006090
03030004110
03030004090
' 03030004070
03030004080
03030004120
' 03030004100
03030004130
' 03030004140
03030006030
03030006080
03030006060
' 03030006040
03030006110
03030006100
' 03030006050
03030005020
' 03030006120
03030006130
03030005030
' 03030006140
03030004150
03030005010

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' 4.2 Amount and Tyae of Credit: The Mitigation Plan is intended to result in the forms and
amounts, in acres, of wetland compensatory mitigation depicted in Table 1 (copied from Table
' 10 of the Mitigation Plan). Successful implementation of the Mitigation Plan will result in the
creation of 240 riparian (riverine) and nonriverine wetland mitigation credits. In addition,
' 2400 linear feet of first order, stream channel credit will be generated (Table 1).
' It is anticipated by the parties to this Agreement that use of mitigation credits shall be "in-
kind"; riparian (riverine) wetland, nonriverine wetland, and first order, stream channel credits
' will be used to offset riverine wetland, nonriverine wetland, and first order, stream channel
impacts.
It is anticipated by the parties to this agreement that in most cases in which USACE, after
' consultation with members of the MBRT, has determined that mitigation credits from the bank
may be used to offset wetland and stream impacts authorized by Department of the Army
' permits, for every acre of impact, one credit will be debited from the Bank. Deviations from
the one to one compensation ratio will be based on considerations of value of the wetlands
' impacted, the severity of the impacts to wetlands, whether this compensatory mitigation is
in-kind, and physical proximity of the wetland impacts to the Bank Site.
All decisions concerning the appropriateness of using credits from the Bank to offset impacts
' to waters and wetlands, as well as all decisions concerning the amount and type of such
credits to be used to offset wetland and water impacts authorized by Department of the Army
' permits, shall be made by USACE, pursuant to the Clean Water Act, and implementing
regulations and guidance, after notice of any proposed use of the Bank to the members of the
' MBRT, and consultation with the members of the MBRT concerning such use.
' 4.3 Credit Release Schedule: The credit release schedule for the Bank, as depicted in Table
3, will be based upon successful completion of the following tasks:

Page 8 of 14

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' Task 1: Task 1 entails acquisition and protection of the bank site, completion of detailed
' mitigation planning, review of plan parameters by the MBRT, and signing of the MBI.
Protective covenants, easements, and bonds on the property acceptable to the MBRT will also
be obtained. Upon completion of Task I, 15% of the wetland Bank credits will be released.
Completion of Task 1 is a prerequisite for release of any credits from the Bank, not
' withstanding completion of other tasks described below.
' Task 2: Task 2 includes completion of all mitigation implementation activities at the Bank.
Stream repair and ephemeral pool construction will be completed and ditch flows diverted into
' the restored floodplain where planned. Ditches w:1:' -IDe backfilled and spoil/roadway fill will
be recontoured within the ditch corridors. Subsequently, soil preparation and planting of
' characteristic wetland trees will be completed. Documentation will be submitted to the MBRT
certifying completion of Task 2. Upon completion of Task 2, 15% of the wetland Bank
' credits will be released (30% cumulative), but no stream credits.
' Task 3: Task 3 involves implementation of the monitoring plan and submittal of annual
reports to the MBRT for a five year monitoring period, or until success criteria have been
' fulfilled, whichever period is longer. Stream, hydrology, and vegetation sampling will be
completed towards the end of each growing season (between September 1 and October 31).
' The data will be compiled and success/failure documented within the Bank. The data will be
submitted to the MBRT as an Annual Wetland Monitoring Report (AWMR). Upon submittal
' of the AWMR showing that success criteria are being fulfilled, wetland credits will be released
as follows.
First AWMR (November 1998): 10% (40% cumulative)
' Second AWMR (November 1999): 15% (55% cumulative)
Third AWMR (November 2000): 15% (70% cumulative)
' Fourth AWMR (November 2001): 10% (80% cumulative)
Fifth AWMR (November 2002): 20%0 (100% cumulative)
' Page 10 of 14
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Credit releases for Task ?j will only occur if success criteria are fulfilled as stipulated in the
' Mitigation Plan and Exhibit A. Stream credit release will begin at the end of the second year
of monitoring, assuming all success criteria are met. The released credits will be cumulative
to total 40% of the available stream credit at the end of the Second AWMR and
' corresponding to the percent of wetland credit released in years 3,4, and 5 (Table 3). If
wetland or stream recovery for the applicable year is delayed (i.e. lacking wetland plants, in-
stream aquatic fauna, or hydrology), the credit will be reserved for release upon submittal of
a subsequent report which verifies restoration success.
The final credit allotment will be released upon completion of the fifth AWMR, fulfillment of
' success criteria, - nd provisions for dispensation/long term managemer` of the property
acceptable to the MBRT. ECOBANK reserves the right to request an expedited release of
credits if wetland restoration success is apparent over a period of time, and success criteria
are met and exceeded.
4.4 Accounting Procedures: The Sponsor shall develop accounting procedures for
' maintaining accurate records of debits made from the Bank, acceptable to the MBRT. Such
procedures shall include the generation of a report by the Sponsor showing credits used at
the time they are debited from the Bank, which the Sponsor shall provide within 30 days of
the debit to each member of the MBRT. In addition, the Sponsor shall prepare an annual
report on each anniversary of the date of execution of this agreement, showing all credits
used, and the balance of credits remaining, to each member of the MBRT, until such time as
' all of the credits have been utilized, or this agreement is otherwise terminated. All reports
will identify credits debited and remaining by type of credit (e.g., nonriverine forested
' wetland), and shall include for each reported debit the USACE Action ID number for the
permit for which the credits were used. Exhibit B comprises a sample master credit ledger
which will be used to track and report Bank debits.
5.0 PROPERTY DISPOSITION
Ownership of the Bank will reside with the Sponsor who intends to provide fee simple
' transfer of the property to the appropriate land management organization as determined by
the MBRT. Fee simple transfer will occur upon completion of debiting of the Bank or the end
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of the monitoring period, whichever is longer. The transferee will be responsible for
maintaining the Bank in accordance with a Conservation Easement placed on the Bank Site
for perpetual protection as described in Section 8.0 of the Mitigation Plan.
6.0 FINANCIAL ASSURANCES
6.1 Monitoring and Maintenance Bonds: The Sponsor is responsible for securing adequate
construction, monitoring, and maintenance bonds as a form of financial assurance to cover
contingency actions in-the event of Bank default or failure. Construction and implementation
activities at the Bank Site were completed in January 1998; therefore, construction bonds
are no longer necessary. However, monitoring and mc:7tenance bonds have been obtained
to ensure monitoring for a five year period and to ensure that contingency actions are
implemented in the event of wetland or stream restoration failure. Financial Assurance
Documents in the form of Monitoring and Maintenance Bonds are included as Exhibit C.
6.2 Management Trust Fund
A separate, long-term trust fund will be provided by the Sponsor for long-term maintenance,
management, and remedial actions acceptable to the MBRT. The trust fund will be
established upon completion of debiting of the Bank or at the end of the monitoring period,
which ever is longer.
7.0 MISCELLANEOUS
This agreement may be amended with the written consent of all the parties.
Notices, requests, and required reports shall be sent by regular mail to each of the parties at
their respective addresses provided below:
' Sponsor:
Alan G. Fickett, Ph.D.
Ecosystems Land Mitigation Bank Corporation
' 1555 Howell Branch Road
Winter Park, Florida 32789

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USACE:
Scott McLendon
U. S. Army Corps of Engineers
Post Office Box 1890
Wilmington, NC 27889-1000
USEPA:
Kathy Matthews
Environmental Protection Agency
Atlanta Federal Center
61 Forsythe St.
Atlanta, GA 30303
USFWS:
Kevin Moody
U. S. Fish and Wildlife Service
P.O. Box 3326
Raleigh, NC 27636
NCWRC:
Bennett Wynne
North Carolina Wildlife Resources Commission
901 Laroque Ave.
Kinston, NC 28501
NCDWQ:
Mac Haupt
North Carolina Division of Water Quality
P.O. Box 29535
Raleigh, NC 27626-0535
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ICJ WITNESS WHEREOF, the parties hereto have executed this Agreement for the Barra Farms
Cape Fear Regional Mitigation Bank.
Col. Terry R. Youngbluth
Wilmington District Engineer
U.S. Army Corps of Engineers
John M. Hefner
Ecological Services Supervisor
U. S. Fish and Wildlife Service
Frank McBride
Director
North Carolina Wildlife Resources Commission
Page 14 of 14
William L. Cox
Chief, Wetlands Section, Wetlands,
Coastal, and Water Quality Grants
Branch, Water Management Division
U.S. Environmental Protection Agency
Preston Howard, Jr., P.E.
Director
North Carolina Division of Water Quality
Alan G. Fickett
Ecosystems Land Mitigation Bank Corp.

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EXHIBIT A
I SUPPLEMENTAL APPENDIX TO THE MITIGATION PLAN
' RESPONSE TO MBRT COMMENTS, REVISIONS
TO THE MITIGATION PLAN, AND THE FINAL,
' REVISED MONITORING PLAN

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SUPPLEMENTAL APPENDIX TO THE MITIGATION PLAN
RESPONSE TO MBRT COMMENTS AND REVISIONS TO THE MITIGATION PLAN
Barra Farms Cape Fear Regional Mitigation Bank
Cumberland County, North Carolina
Introduction
The following discussion provides responses to MBRT comments concerning the mitigation plan
for the Barra Farms Cape Fear Regional Mitigation Bank. The comment letters forwarded by the
MBRT members are attached to this document. This supplemental appendix will serve as an
addendum to the Mitigation Banking Instrument (MBI) and the Mitigation Plan. Plan parameters
enumerated in this addendum replace earlier provisions described in the Mitigation Plan.
U.S. AM Corps of Engineers
Paragraph #2: Comment on the 18-acre, Downstream Addition to the Mitigation Bank
ECOBANK is in the process of negotiating with land owners to protect (through a conservation
easement) approximately 18 acres downstream of the Harrison Creek headwater restoration area.
This wetland area will be included as an "Addition to the Bank" as outlined in Section 2.2 of the
Mitigation Banking Instrument (MBI). The Bank Sponsor will prepare a Site-Specific Restoration
Plan for the Addition for review and approval by the MBRT. The U.S. Army Corp of Engineers,
ECOBANK and its consultants feel that this is a valuable downstream addition to the Bank and
concur that this area will likely provide 9 acres of wetland restoration credit. This addition will also
provide approximately 1900 linear feet of enhanced stream for a total of 4300 linear feet of enhanced
stream for the entire Bank. Stream enhancement credit and monitoring plans for the stream are
described in item "e" below.
a. Page 1, Section 1.0, Introduction. Reference to the 2,247-acre tract should be deleted.
Reference to the entire 2,247-acre tract is removed herein from Page 1 of the Mitigation Plan.
b. Page 19, Section 4.1.2 (Reference Groundwater Model Application and Results). This
section indicates that evapotranspiration rates decrease as the site develops into a
forested system. This statement should be revised to reflect that evapotranspiration
rates actually increase as the site develops.
This reference intends to indicate that evapotranspiration (E/T) rates decrease during successional
phases of forest development. Research indicates that E/T rates decrease from early-mid
successional stages (pocosin vegetation, 5-50 years) to late successional forested conditions.
Although E/T rates do increase in early years from cleared to early successional conditions, the
reference model compared pocosin vegetation to late successional forested conditions to predict an
average hydroperiod through successional phases relative to the reference site (late successional
forest). Hydroperiods increased significantly (22% to 40% of the growing season) as the forest
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canopy developed, in part, due to projected decreases in evapotranspiration. This would suggest that
the steady state forested sites generally remain inundated/saturated longer than pocosin sites in
' Croatan soils.
C. Figure 9, Drainage Estimates. It is unclear what the central unshaded (white) portion
' of the Figure signifies, would this be considered existing wetlands.
The central, unshaded area in Figure 9 (pre-restoration groundwater model) is an area which is not
sustaining accelerated groundwater withdrawal due to ditching (based on the groundwater model).
When considering only precipitation and groundwater inputs, the area may be considered existing
wetlands. However, surface water influences (stream inflows) on wetlands in this area have been lost
' due to watershed diversion away from this headwater storage area and stream origin. The unshaded
area in Figure 10 (post-restoration) depicts a similar situation concerning groundwater; but stream
flows will also be restored in the unshaded area.
' d. Page 29, Section 5.1.3, OIT Site Drainage Redirection. Will the shallow ditch *'_'at
prevents flooding on adjacent property owners be a maintenance concern as the ditch
l' fills in or becomes blocked.
The Off-Site Drainage Redirection is planned to discharge onto the mitigation site (Site) at an
elevation of 114.5 feet above MSL. Because elevations on portions of the Site are generally lower
' than 114.5 feet, the discharge path would be expected to eventually develop characteristics of an
alluvial fan at outfall(s). On the mitigation site, the shallow ditch is not expected to persist over a
relatively long period of time (5+ years). Therefore, periodic ditch maintenance within the
' mitigation site is not required
Above the mitigation site, the ditch may require cleaning, as has been the case prior to mitigation
' activities. If the plan is implemented at the assigned elevations, off-site ditch flows should continue
to discharge onto the Site even if the on-site, shallow ditch segment develops into an alluvial fan.
This area will be regularly evaluated during the 5-year monitoring period to assess these predictions.
e. Page 36, Section 7.2, Hydrology Success Criteria. This section should also contain
' specific success criteria for the stream restoration area.
Hydrology Success Criteria for the Stream Restoration Area is incorporated into the Mitigation Plan
as described below. The revised, final monitoring plan is also attached to the end of this document
' (Response to Agency Comments).
Stream Monitoring
' Stream monitoring and success criteria will be established through measurement of in-stream flows,
measurement of stream geometry, and measurement of biological stream attributes.
' In-stream flows will be measured through placement of two continuos monitoring stream flow
gauges. The gauges will be capable of recording velocity (ft/second) and discharge (cubic feet per
second, CFS). Discharge is typically calculated by measuring height (or depth) of the water column
' and inputting the resulting cross-section. One gauge will be placed at a culvert located
approximately 300 feet below stream outfall from the Bank (Drainage Area: 2.5 mi2). The second
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gauge will be placed within the culvert and State road crossing at the riverine wetland reference site
in Bladen Lakes State Forest (Drainage Area: 6.7 mi2). The data will be reported as mean daily
' flows for velocity (ft/second) and discharge (CFS) in tabular and graphic format.
Stream geometry will be measured along axed stream reac located in central portions of the
mitigation stream reach. The stream reach will ex minimum of 200 feet along the restored
channel. Annual fall monitoring will include development of a channel plan view, three channel
cross-sections, pebble counts, and a water surface profile of the channel. The data will be presented
in graphic and tabular format as summarized in the attached table. Data to be presented will include:
1) cross-sectional area; 2) bankfull width; 3) average depth; 4) average width; 5) width/depth ratio;
6) meander wavelength; 7) beltwidth; 8) water surface slope; 9) sinuosity; and 10) stream substrate
composition. The stream will subsequently be classified according to stream geometry and substrate
(Rosgen 1996). Significant changes in channel morphology will be tracked and reported by
' comparing data between the reference stream and mitigation stream and by comparing data in each
successive mcnitoring year.
' Biological stream attributes will be measured annually at the mitigation site and in the reference
wetland site between April 15 and May 15 of each year. Aquatic surveys will record
presence/absence of macro-invertebrate, reptile, amphibian, and fish species populations.
Presence/absence of species populations identified will be reported along with observations of
changes to in-stream aquatic habitat or species presence/absence over time.
' Stream Success Criteria
Success criteria for stream restoration will include: 1) stream classification; 2) target mean daily
stream flows; and 3) increased stream faunal recruitment and diversity.
Stream geometry measurements will be incorporated into the Rosgen stream classification system.
The channel and flood prone area must support characteristics supporting an E, C, or DA stream type
' to fulfill the success criteria.
' In-stream flow measurements must indicate that the mitigation stream reach supports average annual,
mean daily flows per unit of drainage area equal to, or exceeding the average annual, mean daily
flows per unit of drainage area within the reference stream reach. Due to potential rainfall
' differences within each watershed, a five percent deviation in average annual, mean daily flows
between the reference and mitigation stream reaches will be allowed by the MBRT. The reference
stream reach supports an approximate 6.7 mil drainage area while the mitigation stream reach
' supports an approximate 2.5 mil drainage area (37% of reference). Therefore, average annual, mean
daily flows in the mitigation reach must a ual to or exceed 32% of the average annual, mean daily
flows in reference. If the mitigation reac nd/ reference reach support no measurable flow during
' a drought period, fulfill uccess criteria will be based upon mean daily flows prior to, and
follow* no ow condition.
' v Biological monitoring will indicate similar species diversity as compared to reference conditions or
an increase in species diversity towards reference conditions over time. Specifically, the type and
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' number of species populations identified in the mitigation reach must be equal to, or increasing
towards, the type and number of species identified in the reference reach in each successive
monitoring year. However, because the Bank supports a developing stream reach, allowances may
be given and justified when evaluating future data.
' f. Page 36, Section 7.1, Hydrology Monitoring. The plan seems to indicate that a single
hydrology success criteria will be used for all nonriverine portions of the site, however, this
section states that monitoring will be performed at intervals necessary to satisfy the hydrology
success criteria within each designated physiographic area. Please clarify this section of the
plan.
Hydrology monitoring will be performed at intervals necessary to satisfy the hydrology success
criteria within each designated physiographic area: 1) groundwater flats; 2) headwater slope; and
3) riverine floodplain. The groundwater flat and riverine floodplain will be compared directly to the
corresponding reference site.
The headwater slope area presents a more complex situation. Based on general evaluations of
Coastal Plain wetlands, these headwater slopes appear sometimes wetter than the surrounding flat
and sometimes dryer than the surrounding flat. This may be due to a number of factors; however,
slope of the groundwater table and discharge rates into ephemeral stream channels most likely play
an important role. It is our opinion that this headwater storage area may remain significantly wetter
than the adjacent groundwater flat for the first few years until ephemeral drainageways begin to
' reform towards the historic stream. Subsequently, the headwater slope will begin to exhibit shorter
hydroperiods than the groundwater flat over time.
' As stated in the monitoring plan, the hydrology success criteria for the headwater slope
physiographic area will be interpolated between the two adjacent systems (groundwater flats and
riverine floodplains). The success criteria for the headwater slope is expected to comprise the
' average hydroperiod exhibited by reference sites for both adjacent systems (riverine floodplain and
groundwater flat).
g. Relative to comment (f.), above, what preliminary data is available relative to
groundwater fluctuation in the reference area. Please include this information in the
' final plan.
Periodic sampling data for groundwater fluctuation in the groundwater flat reference area is included
as PZ 13 in Table 1 (Page 12) of the Mitigation Plan.
' h. Page 37, Section 7.2, Reference Wetland Sites. Does ECOBANK have legal assurances
that the reference site located in Harrison Creek Bay will not be clear-cut or otherwise
' manipulated. Unless these assurances are made we question ECOBANK's ability to
guarantee that the methods to determine hydrologic success can be carried out over the
life of the monitoring program.
' Reference Wetland Sites for this project include nonriverine swamp forests in the northwestern
portion of Harrison Creek Bay and riverine swamp forests located in Bladen Lakes State Forest.
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' ECOBANK has obtained verbal assurances from land owners that the reference sites will not be
clear-cut during the 5-year monitoring period. Legal assurances have not been obtained and are not
' considered necessary. ECOBANK will maintain responsibility for providing reference site and
mitigation site data sufficient to defend achievement of hydrology success criteria, as outlined in the
Mitigation Plan.
i. All materials in the plan and NMI must be no larger than 81/2" x 14" (legal) size paper.
Graphics in the mitigation plan which are larger than 8 1/i' x 14' (legal) size will be reduced and
' forwarded to the U.S. Army Corps of Engineers.
' North Carolina Wildlife Resources Commission
1. Definition of up-front mitigation.
' Up front mitigation has been defined in the plan as completion of all mitigation activities and
initiation of the moni..:.ring plan prior to permitted impacts.
5. Potential property dispensation to WRC.
I' The MBRT and WRC have considered Barra Farms for inclusion into the WRC Game Lands
Program. Public access is a critical factor in determining the tract's suitability for inclusion. The
623-acre mitigation site maintains vehicular access points along the northern and southern
boundaries of the project. Public access opportunities at these vehicular access points is currently
unknown. If areas adjacent to the current bank site are incorporated into the Bank at a later time,
' additional opportunities for public access will occur. The NCWRP has agreed to hold the
conservation easement until a final determination is made for ultimate dispensation of the property.
September 11, 1998 letter
1. First order stream restoration and mitigation use.
' "First order" stream designation has replaced "low order" stream references in paragraphs 1 and 2
on page 7 of the MBI. We agree that first order stream restoration at Barra Farms should be used
to mitigate for first order streams on approved projects - not for second order or larger systems. This
' is a decision that will be addressed at the time of permitting between applicant and permit agencies.
' 2. Stream mitigation credit.
One foot of stream restoration equates to one mitigation credit. This credit request is addressed in
Table 1 of the MBI.
' North Carolina Division of Water Quality / North Carolina Wetland Restoration Program
' 1. Derivation of Credit for Stream Restoration/Enhancement.
Stream restoration credit is requested within 2400 linear feet of relict channel located at the southern
margins of the property. This system has maintained a drainage area of approximately 0.5 square
' miles for several decades. The approximately 9.8 square mile watershed which historically flowed
through the stream was channelized off the property through an extensive canal network. The canal
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' network reconnects into the stream system several miles below the mitigation site. This watershed
redirection routed waters to the north and west, depriving the former stream system of its source.
' Since this time, sediment buildup and debris deposition has obliterated evidence of a defined stream
channel, although relic features do remain to convey intermittent flow during peak storms.
' These relict features do not meet DWQ guidelines for stream designation under existing conditions.
Steve Kroger of DWQ visited the former stream in April 1997 and questioned whether this system
represents an actual stream valley. There is no distinct bed and bank; there are no pool/riffle
' formations; there is no evidence of aquatic life or fisheries; there are no substrate features to suggest
perennial flow. In summary, a 0.5 square mile watershed in this region of the Coastal Plain is not
' considered adequate to support a viable stream channel. This fact is depicted in the hydraulic
analysis in the Mitigation Plan.
' Three options of stream mitigation are generally recognized in the region; 1) in-place modifications
to an existing stream; 2) construction of a ne: - stream adjacent to an existing channel; and 3)
establishment of a stream where one does not currently exist. Option 3, commonly referred to as a
watershed diversion, represents the method for stream mitigation applied at Barra Farms. The
watershed for this relict floodplain is being increased from less than 0.5 square miles under existing
conditions to more than 2.5 square miles under post-mitigation conditions (a five-fold increase).
Therefore, stream restoration credit for 2400 linear feet of channel is proposed.
2. Stream Monitoring Plan
The stream monitoring plan and success criteria are described above.
3. Credit Release Schedule for Stream Credits
The credit release schedule for stream credits will follow the procedures developed by the MBRT
for wetland credit release. The revised credit release schedule for wetland and stream credit is
' included in Table 3.

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1.0 REVISED. FINAL MONITORING PLAN
The Monitoring Plan will consist of a comparison between hydrology model predictions, reference
streams and wetlands, and restoration areas on the Site. Stream restoration monitoring will be
performed through analysis of in-stream flows, stream geometry, and biological stream attributes.
Wetland monitoring will entail analysis of two primary parameters: vegetation and hydrology.
Monitoring of restoration and enhancement efforts will be performed until success criteria are
fulfilled.
1.1 HYDROLOGY MONITORING
After hydrological modifications are being performed on the site, surficial monitoring wells will be
designed and placed in accordance with specifications in U.S. Corps of Engineers', Installing
Monitoring_Wells/Piezometers in Wetlands (WRP Technical Note HY-IA-3.1, August 1993).
Monitoring wells will be set to a depth of approximately 24 inches below the soil surface.
Twenty three surficial monitoring wells (manual recording) will be installed at the Site to provide
' representative coverage and flow gradients extending through each of the three physiographic
landscape areas (Figure 2). Four monitoring wells will also be placed within the reference wetland
site in similar landscape positions, where available. Three continuous recording (RDS24) wells will
also be installed on-site to provide continuous data that can be extrapolated to manual recording
devices.

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Hydrological sampling will be performed on-site and within reference during the growing season (17
March to 12 November) at intervals necessary to satisfy the hydrology success criteria within the
designated physiographic area (EPA 1990). In general, the wells will be sampled weekly through
the Spring and early Summer and intermittently through the remainder of the growing season, if
needed to verify success. Z
1.2 HYDROLOGY SUCCESS CRITERIA
Target hydrological characteristics have been evaluated using a potential combination of three
different methods: 1) regulatory wetland hydrology criteria; 2) reference groundwater modeling; and
3) reference wetland sites.
Regulatory Wetland Hydrology Criteria
The regulatory wetland hydrology criterion requires saturation (free water) within one foot of the soil
surface for 12.5 percent of the growing season under normal climatic conditions. In some instances,
the regulatory wetland hydroperiod may extend for between 5 and 12.5% of the growing season.
Reference Groundwater Model
The reference groundwater model forecasts that the wetland hydroperiod in interior areas of the Site
will average 22% of the growing season in early successional phases. As steady state forest
conditions develop, the average wetland hydroperiod is forecast to encompass 40% of the growing
season. Over the 31 year modeling period, the annual hydroperiod fluctuated from less than 12.5%
to over 44% dependent upon rainfall patterns and successional phase. In addition, the on-site
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landscape includes diverse wetland geomorphology, especially near uplands and the stream channel,
which are not characterized by the model.
Due to wide fluctuations in modeled annual hydroperiod (<12-44+%), the groundwater model cannot
provide a specific hydrology success criteria above the regulatory criterion (12.5%) on an annual
basis. A specific success criteria such as a 22% target hydroperiod will fail in 50% of the years
sampled. A success criteria of 12.5% (the regulatory criteria) will also fail in 10% of the years
sampled in reference wetlands.
Reference Wetland Sites
Four monitoring wells will be placed in the groundwater flats reference wetland located in the
northwestern periphery of Barra Farms. Wells will be also be placed in a riverine reference wetland
in the Bushy Lake/Horse shoe Lake natural area dependent upon contact with the North Carolina
Park and Recreation Service. These wells will provide annual hydroperiods on the organic soil flat,
and riverine floodplain physiograp. c areas of the Site. The headwater slope physiographic areaxn?y
be interpolated between the two systems. Transition zones from uplands towards the wetland interior
will not be represented. Therefore, these wells will provide comparative information on interior
wetlands only. D t Q 1. - \b 7 7,
is Site will require saturation (free water) within one foot of the
or th
The hydrology succesT
soil surface for at 1 of t e hydroperiod exhibited by the reference wetland.
Based on groundwater models, average wetland hydroperiods in groundwater flats will exhibit a
steady, non-linear increase from 22% to 40% of the growing season during forest (post-farmland)
development. This trend includes a hypothetical reduction in hydraulic conductivities and a 50%
' increase in surface water storage through the first 15 years of wetland development. Therefore, a
goal of 50 +/-% hydroperiods relative to reference wetlands is warranted for the five year monitoring
period. This 50% goal may not apply in non-organic soils as evapotranspiration may play a greater
' role in early successional hydroperiods than surface water storage.

1.3 VEGETATION
Restoration monitoring procedures for vegetation are designed in accordance with EPA guidelines
presented in Mitigation Site Type (MiST) documentation (EPA 1990) and COE Compensatory
Hardwood Mitigation Guidelines (DOA 1993). The following presents a general discussion of the
monitoring program.
After planting has been completed in winter or early spring, an initial evaluation will be performed
to verify planting methods and to determine initial species composition and density. Supplemental
planting and additional site modifications will be implemented, if necessary.
During the first year, vegetation will receive cursory, visual evaluation on a periodic basis to
ascertain the degree of overtopping of planted elements by weeds. Subsequently, quantitative
sampling of vegetation will be performed between September 1 and October 31 after each growing
season until the vegetation success criteria is achieved.
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After planting plan implementation, 0.05 acre plots will be within each restored ecosystem type.
approximately twenty three plots will be correlated with hydrological monitoring locations to
' provide point-related data on hydrological and vegetation parameters.
' 1.4 VEGETATION SUCCESS CRITERIA
Success criteria have been established to verify that the wetland vegetation component supports a
species composition sufficient for a jurisdictional determination. Additional success criteria are
dependent upon the density and growth of characteristic forest species. Specifically, a minimum
mean density of 320 characteristic trees/ac must be present for the five year monitoring period.
Characteristic tree species are those within the reference ecosystems, elements enumerated in the
' planting plan, along with natural recruitment of sweet gum, red maple, loblolly bay, loblolly pine,
black willow, and pond pine. Softwood species) cannot comprise more than 10 percent of the 320
stem/acre requirement. In addition, at least five character tree species must be present, and no
species can comprise more than 20 percent of the 320 stem/acre total. Supplemental plantings will
--bt performed as needed to achieve the vegetation success critc-.-a.
' No quantitative sampling requirements are proposed for herb and shrub assemblages as part of the
vegetation success criteria. Development of a forest canopy over several decades and restoration of
wetland hydrology will dictate the success in migration and establishment of desired wetland
' understory and groundcover populations. Visual estimates of the percent cover/composition of shrub
and herbaceous species and photographic evidence will be reported for information purposes.
1.5 STREAM
Stream monitoring and success criteria will be established through measurement of in-stream flows,
measurement of stream geometry, and measurement of biological stream attributes.
In-stream flows will be measured through placement of two continuos monitoring stream flow
' gauges. The gauges will be capable of recording velocity (ft/second) and discharge (cubic feet per
second, CFS). Discharge is typically calculated by measuring height (or depth) of the water column
and inputting the resulting cross-section. One gauge will be placed at a culvert located
' approximately 300 feet below stream outfall from the Bank (Drainage Area: 2.5 mi) . The second
gauge will be placed within the culvert and State road crossing at the riverine wetland reference site
in Bladen Lakes State Forest (Drainage Area: 6.7 mi) . The data will be reported as mean daily
' flows for velocity (ft/second) and discharge (CFS) in tabular and graphic format.
Stream geometry will be measured along a fixed stream reach located in central portions of the
' mitigation stream reach. The stream reach will extend for a minimum of 200 feet along the restored
channel. Annual fall monitoring will include development of a channel plan view, three channel
cross-sections, pebble counts, and a water surface profile of the channel. The data will be presented
' in graphic and tabular format as summarized in the attached table. Data to be presented will include:
1) cross-sectional area; 2) bankfull width; 3) average depth; 4) average width; 5) width/depth ratio;
6) meander wavelength; 7) beltwidth; 8) water surface slope; 9) sinuosity; and 10) stream substrate
' composition. The stream will subsequently be classified according to stream geometry and substrate
(Rosgen 1996). Significant changes in channel morphology will be tracked and reported by
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comparing data between the reference stream and mitigation stream and by comparing data in each
successive monitoring year.
Biological stream attributes will be measured annually at the mitigation site and in the reference
wetland site between April 15 and May 15 of each year. Aquatic surveys will record
presence/absence of macro-invertebrate, reptile, amphibian, and fish species populations.
Presence/absence of species populations identified will be reported along with observations of
changes to in-stream aquatic habitat or species presence/absence over time.
1.6 STREAM SUCCESS CRITERIA
Success criteria for stream restoration will include: 1) stream classification; 2) target mean daily
stream flows; and 3) increased stream faunal recruitment and diversity.
Stream geometry measurements will be incorporated into the Rosgen stream classification system.
The channel and flood prone area must sup~ort characteristics supporting an E, C, or DA stream type
to fulfill the success criteria.
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In-stream flow measurements must indicate that the mitigation stream reach supports average annual,
mean daily flows per unit of drainage area equal to, or exceeding the average annual, mean daily
flows per unit of drainage area within the reference stream reach. Due to potential rainfall
differences within each watershed, a five percent deviation in average annual, mean daily flows
between the reference and mitigation stream reaches will be allowed by the MBRT. The reference
stream reach supports an approximate 6.7 mil drainage area while the mitigation stream reach
supports an approximate 2.5 mil drainage area (37% of reference). Therefore, average annual, mean
daily flows in the mitigation reach must equ to or exceed 32% of the average annual, mean daily
flows in reference. JfJbanuugadan=acb and/ eference reach support no measurable flow during
a dro eriod, fulfillment of success criteria will be based upon mean daily flows prior to, and
lowing the no flow condition.
Biological monitoring will indicate similar species diversity as compared to reference conditions or
an increase in species diversity towards reference conditions over time. Specifically, the type and
number of species populations identified in the mitigation reach must be equal to, or increasing
towards, the type and number of species identified in the reference reach in each successive
monitoring year. However, because the Bank supports a developing stream reach, allowances may
be given and justified when evaluating future data.
1.7 REPORT SUBMITTAL
Documentation will be submitted to the MBRT certifying completion of implementation activities.
Any changes to this mitigation plan will be described in this documentation. The document will be
provided within 60 days of completion of all work at the Site.
Subsequently, reports will be submitted yearly to the MBRT following each assessment. Reports
will document the sample transect locations, along with photographs which illustrate site conditions.
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' Surficial well data will be presented in tabular/graphic format. The duration of wetland hydrology
during the growing season will be calculated at each well, within each on-site physiographic area,
and within the reference wetland site.
The survival and density of planted tree stock will be reported. In addition, characteristic tree
' species mean density and average height as formatted in the Vegetation Success Criteria will be
calculated. Estimates and photographic evidence of the relative percent cover of understory and
' groundcover species will be generated.
1.8 CONTINGENCY
In the event that vegetation or hydrology success criteria are not fulfilled, a mechanism for
contingency will be implemented. For vegetation contingency, replanting and extended monitoring
periods will be implemented if community restoration does not fulfill minimum species density and
' distribution requirements.
Hydrological contingency will require consultation with hydrologists and regulatory agencies if
' wetland hydrology restoration is not achieved during the monitoring period. Recommendations for
contingency to establish wetland hydrology will be implemented and monitored until the Hydrology
Success Criteria are achieved. Performance bonds have been established to guarantee fiscal
resources for remediation.
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EXHIBIT B
SAMPLE MASTER CREDIT LEDGER

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EXHIBIT C
MONITORING AND MAINTENANCE BOND
DOCUMENTATION
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MITIGATION MONITORING/MAINTENANCE
PERFORMANCE BOND
Date bond executed:
Effective date:
Principal: Ecosystems Land Mitigation Bank Corporation
1555 Howell Branch Road Winter Park Florida 32789
Type of Organization: Individual
Joint Venture
Partnership
X Corporation
State of Incorporation: Florida
Surety(ies): Cumberland Casualty & Surety Company
4311 West Waters Avenue. Suite 401
Tampa. Florida 33614
Scope of Coverage: Task 3 of the Cape Fear Mitigation Banking Instrument ("MBI") for the Barra
Farms property in Cumberland County, North Carolina ("Mitigation Project").
Total penal sum of bond: $100,000.00
Surety's Bond Number: XXXXXXXX
KNOW ALL PERSONS BY THESE PRESENTS, That we, the Principal and Surety(ies)
hereto are firmly bound to the United States Army Corps of Engineers ("USACE")/State of North
Carolina Department of Environment and Natural Resources - Wet Lands Restoration Program,
Division of Water Quality ("DENR') in the above penal sum for the payment of which we bind
ourselves, our heirs, executors, administrators, successors, and assigns jointly and severally;
provided that, where the Sureties are corporations acting as co-sureties, we, the Sureties, bind
ourselves in such sum "jointly and severally" only for the purpose of allowing a joint action or
actions against any or all of us, and for all other purposes each Surety binds itself, jointly and
severally with the Principal, for the payment of such sum only as is set forth opposite the name
of such Surety, but if no limit of liability is indicated, the limit of liability shall be full amount of
the penal sum.
Rev. 1.8 (9/22198)

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WHEREAS, said Principal is required to provide financial assurance for Task 3 of the
MBI or the Mitigation Project as further described in the scope of coverage above, and
WHEREAS, said Principal shall establish a standby trust fund as is required when a surety
bond is used to provide such financial assurance;
NOW, THEREFORE, the conditions of the obligation are such that if the Principal shall
faithfully perform completion of Task 3 of the Mitigation Project as further described in the scope
of coverage herein, for which this bond guarantees completion, in accordance with the MBI as
such may be amended, pursuant to all applicable laws, statutes, rules, and regulations, as such
laws, statutes, rules and regulations may be amended;
Or, if the Principal shall provide alternate financial assurance and obtain the
USACE/DENR's written approval of such assurance within 90 days after the date notice of
cancellation is received by both the Principal and the USACE/DENR from the Surety(ies), then
this obligation shall be null and void, otherwise it is to remain in full force and effect. .
Such obligation does not apply to any of the following:
(a) Any obligation of Ecosystems Land Mitigation Bank Corporation under a
workers' compensation, disability benefits, or employment compensation
law or other similar law;
(b) Bodily injury to an employee of Ecosystems Land Mitigation Bank
Corporation arising from, and in the course of, employment by Ecosystems
Land Mitigation Bank Corporation;
(c) Bodily injury or property damage arising from the ownership, maintenance,
use of, or entrustment to others of any aircraft, motor vehicle, or
watercraft;
(d) Property damage to any property owned, rented, loan to, in the care,
custody, or control of, occupied by Ecosystems Land Mitigation Bank
Corporation that is not the direct result of a construction or implementation
activity for the MBI.
(e) Bodily injury or property damage for which Ecosystems Land Mitigation
Bank Corporation is obligated to pay damages by reason of the assumption
of liability in a contract or agreement other than a contract or agreement
entered into to meet the requirements of the MBI.
The Surety(ies) shall become liable on this bond obligation only when the Principal has
failed to fulfill the conditions described above.
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Upon notification by the USACE/DENR that the Principal has been found in violation of
the requirements of MBI for completion of Task 3 of the Mitigation Project for which this bond
guarantees performance, the Surety(ies) shall within sixty (60) days of receiving such notice either
perform completion in accordance with the MBI and pursuant to the written directions of the
USACE/DENR or place the bond amount guaranteed for Task 3 of the Mitigation Project into the
standby trust fund as directed by the DENR.
Upon notification by the USACE/DENR that the Principal has failed to provide alternate
financial assurance and obtain written approval of such assurance from the USACE/DENR during
the 90 days following receipt, by both the Principal and the USACE/DENR, of a notice of
cancellation of the bond, the Surety(ies) shall place funds in the total penal sum of this bond
guaranteed for the completion of Task 3 of the Mitigation Project in accordance with the MBI into
the standby trust fund as directed by the DENR.
The Surety(ies) hereby waive(s) notification of amendments to the NMI permits, applicable
laws, statutes, rules and regulation and agrees that no such amendment shall in any way alleviate
its (their) obligation on this bond.
The Liability of the Surety(ies) shall not be discharged by any payment or succession of
payments hereunder, unless and until such payment or payments shall amount in the aggregate to
the penal sum of the bond, but in no event shall the obligation of the Surety(ies) hereunder exceed
the amount of said penal sum.
The Surety(ies) may cancel the bond by sending notice of cancellation by certified mail to
the Principal and the USACE/DENR; provided, however that cancellation shall not occur during
the 120 days beginning on the date of receipt of the notice of cancellation by both the Principal
and the USACE/DENR, as evidence by the return receipts.
The Principal may terminate this bond by sending written notice to the Surety(ies);
provided, however, that no such notice shall become effective until the Surety(ies) receive(s)
written authorization for termination of the bond by the USACE/DENR.
Principal and Surety(ies) hereby agree to adjust the penal sum of the bond yearly so that
it guarantees increased or decreased completion costs provided that no decrease in the penal sum
takes place without the written permission of the USACE/DENR.
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IN WITNESS WHEREOF, the Principal and Surety(ies) have executed this Performance
Bond and have affixed their seals on the date set forth above.
The persons whose signatures appear below hereby certify that they are authorized to
execute this surety bond on behalf of the Principal and Surety(ies).
PRINCIPAL
ECOSYSTEMS LAND MITIGATION
BANK CORPORATION
Y:
D. Miller McCarthy, President
(Corporate Seal)
Rev. 1.8 (9/22/98)
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CORPORATE SURETY(IES)
CUMBERLAND CASUALTY & SURETY
COMPANY
By:
Edward J. Edenfield IV, President
4311 West Waters Avenue, Suite 401
Tampa, Florida 33614
Florida
State of Incorporation
Liability Limit: $100.000.00
(Corporate Seal)

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MITIGATION BANK STANDBY TRUST FUND AGREEMENT
TO DEMONSTRATE MONITORING/MAINTENANCE
FINANCIAL ASSURANCE
TRUST AGREEMENT, the "Agreement," entered into as of
Date
by and
between Ecosystems Land Mitigation Bank Corporation
Name of the Owner or Operator
a Florida Corporation (the Grantor,)
Name of State Insert "corporation, partnership association, or proprietorship ",
and SouthTrust Asset Management Company of Florida. N.A.
Name and Address of Corporate Trustee
aNational Bank (the Trustee.)
Insert "incorporated in the state of ."or" a national bank"
WHEREAS, Grantor is the owner of certain real property in Cumberland County, North
Carolina, and has received from the United States Army Corps of Engineers ("USACE")/State of
North Carolina Department of Environment and Natural Resources - Wet Lands Restoration
Program, Division of Water Quality ("DENR") that Mitigation Banking Instrument ("MBI")
Number ("Permit") which authorizes the construction, operation and
implementation of a wetland mitigation bank known as Cape Fear Mitigation Bank.
WHEREAS, the USACE/DENR, have established certain regulations applicable to the
Grantor, requiring that an owner of a wetland mitigation bank provide assurance that funds will
be available when needed for the monitoring and maintenance of this mitigation bank if Grantor
fails to monitor and maintain this mitigation bank pursuant to the terms of the above referenced
permit.
WHEREAS, the Grantor has elected to establish a performance bond to provide such financial
assurance for the monitoring and maintenance of the mitigation bank identified herein and is
requested to establish a standby trust fund able to accept payments from the performance bond.
WHEREAS, the Grantor, acting through its duly authorized officers, has selected the Trustee ,
to be the trustee under this agreement, and the Trustee is willing to act as trustee,
NOW, THEREFORE, the Grantor and the Trustee agree as follows:
Section 1. Definitions. As used in this Agreement:
(a) The term "Grantor" means Ecosystems Land Mitigation Bank Corporation who enters into
this Agreement and any successors or assigns of the Grantor.
(b) The term "Trustee" means SouthTrust Asset Management Company of Florida, N.A., the
Trustee who enters into this Agreement and any successor Trustee.
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(c) The term "USACE/DENR" means the United States Army Corps of Engineers and the
North Carolina Department of Environment and Natural Resources - Wet Lands
Restoration Program, Division of Water Quality or any successor thereof.
Section 2. Identification of Facilities and Cost Estimates. This Agreement pertains to the
Facilities and cost estimates identified on attached Schedule A.
Section . Standby Trust. This Trust shall remain dormant until funded with the proceeds
from the Surety Bond as listed on
Insert "Letter of Credit" or "Surety Bond"
Schedule B. The Trustee shall have no duties or responsibilities beyond safekeeping this
Document. Upon funding this Trust shall become active and be administered pursuant to the terms
of this instrument.
Section 4. Establishment of Fund. The Grantor and the Trustee hereby establish a trust fund
(the Fund), for the benefit of the DENR. The Grantor and the Trustee intend that no third parry
have access to the Fund except as herein provided. The Fund is established initially as a standby
to receive payments and shall not consist of any property. Payments made by the provider of the
Surety Bond listed on Schedule B pursuant to the DENR's instructions are transferred to the
Trustee and are referred to as the Fund, together with all earnings and profits thereon, less any
payments or distributions made by the Trustee pursuant to this Agreement. The Fund shall be held
by the Trustee,.IN TRUST, as hereinafter provided. The Trustee shall not be responsible nor shall
it undertake any responsibility for the amount or adequacy of, nor any duty to collect from the
Grantor, any payments necessary to discharge any liabilities of the Grantor established by the
DENR.
Section 5. Payment for Completing Monitoring and Maintenance. The Trustee shall make
payments from the Fund as the Director of the DENR's Division of Water Quality shall direct,
in writing, to provide for the payment of the costs of completing monitoring and maintenance of
Task 3 - Cape Fear Mitigation Banking Instrument including any modifications or amendments
to that Banking Instrument. The Trustee shall reimburse such persons as specified by the DENR
from the Fund for monitoring and maintenance expenditures in such amounts as the DENR shall
direct in writing. In addition, the Trustee shall refund to the Grantor such amounts as the DENR
specifies in writing. Upon refund, such funds shall no longer constitute part of the Fund as defined
herein.
The Fund may not be drawn upon to cover any of the following:
(a) Any obligation of Ecosystems Land Mitigation Bank Corporation under a workers'
compensation, disability benefits, or unemployment compensation law or other similar
law;
(b) Bodily injury to an employee of Ecosystems Land Mitigation Bank Corporation arising
from, and in the course of employment by Ecosystems Land Mitigation Bank Corporation;
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(c) Bodily injury or property damage arising from the ownership, maintenance, use, or
entrustment to others of any aircraft, motor vehicle, or watercraft;
(d) Property damage to any property owned, rented, loaned to, in the care, custody, or control
of, or occupied by Ecosystems Land Mitigation Bank Corporation that is not the direct
result of the monitoring and maintenance of the mitigation bank;
(e) Bodily injury or property damage for which Ecosystems Land Mitigation Bank Corporation
is obligated to pay damages by reason of the assumption of liability in a contract or
agreement other than a contract or agreement entered into to meet the requirements of
USACE Mitigation Banking Instrument.
Section 6. Payments Comprising the Fund. Payments made to the Trustee for the Fund shall
consist of cash or securities acceptable to the Trustee and shall consist solely of proceeds from the
Surety Bond
Insert "Letter of Credit" or "Surety Bond".
Section 7. Trustee Management. The Trustee shall invest and reinvest the principal and
income of the Fund and keep the Fund invested as a single fund, without distinction between
principal and income, in accordance with general investment policies and guidelines which the
Grantor may communicate in writing to the Trustee from time to time, subject, however, to the
provisions of this Section. In investing, reinvesting, exchanging, selling, and managing the Fund,
the Trustee shall discharge his duties with respect to the trust fund solely in the interest of the
beneficiary and with the care, skill, prudence, and diligence under the circumstances then
prevailing which persons of prudence, acting in a like capacity and familiar with such matters,
would use in the conduct of an enterprise of a like character and with like aims; except that:
(a) Securities or other obligations of the Grantor, or any other owner or operator of the
mitigation bank, or any of their affiliates as defined in the Investment Company Act of
1940, as amended, 15 U.S.C. 80a-2.(a), shall not be acquired or held, unless they are
securities or other obligations of the Federal or a State government;
(b) The Trustee is authorized to invest the Fund in time or demand deposits of the Trustee, to
the extent insured by an agency of the Federal or a State government; and
(c) The Trustee is authorized to hold cash awaiting investment or distribution uninvested for
a reasonable time and without liability for the payment of interest thereon.
Section . Commingling and Investment. The Trustee is expressly authorized in its discretion:
(a) To transfer from time to time any or all of the assets of the Fund to any common,
commingled, or collective trust fund created by the Trustee in which the Fund is eligible
to participate, subject to all of the provisions thereof, to be commingled with the assets of
other trusts participating therein; and
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(b) To purchase shares in any investment company registered under the Investment Company
Act of 1940,15 U.S.C. 80a-1 et seq., including one which may be created, managed,
underwritten, or to which investment advice is rendered or the shares of which are sold by
the Trustee. The Trustee may vote such shares in its discretion.
Section . Express Power of Trustee. Without in any way limiting the powers and discretion
conferred upon the Trustee by the other provisions of this Agreement or by law, the Trustee is
expressly authorized and empowered:
(a) To sell, exchange, convey, transfer, or otherwise dispose of any property held by it, by
public or private sale. No person dealing with the Trustee shall be bound to see to the
application of the-purchase money or to inquire into the validity or expediency of any such
sale or other disposition;
(b) To make, exf-cute, acknowledge, and deliver any and all documents z-t transfer and
conveyance and any and all other instruments that may be necessary or appropriate to carry
out the powers herein granted;
(c) To register any securities held in the Fund in its own name or in the name of a nominee
and to hold any security in bearer form or in book entry, or to combine certificates
representing such securities with certificates of the same issue held by the Trustee in other
fiduciary capacities, or to deposit or arrange for the deposit of such securities in a qualified
central depository even though, when so deposited, such securities may be merged and
held in bulk in the name of the nominee of such depository with other securities deposited
therein by another person, or to deposit or arrange for the deposit of any securities issued
by the United States Government, or any agency or instrumentality thereof, with a Federal
Reserve bank, but the books and records of the Trustee shall at all times show that all such
securities are part of the Fund;
(d) To deposit any cash in the Fund in interest-bearing accounts maintained or savings
certificates issued by the Trustee, in its separate corporate capacity, or in any other
banking institution affiliated with the Trustee, to the extent insured by an agency of the
Federal or a State government; and
(e) To compromise or otherwise adjust all claims in favor of or against the Fund.
Section 1 . Taxes and Expenses. All taxes of any kind that may be assessed or levied against
or in respect of the Fund and all brokerage commissions incurred by the Fund shall be paid from
the Fund. All other expenses incurred by the Trustee in connection with the administration of this
Trust, including fees for legal services rendered to the Trustee, the compensation of the Trustee
to the extent not paid directly by the Grantor, and all other proper charges and disbursements of
the Trustee shall be paid from the Fund.
Section 11. Annual Valuation. The Trust shall annually, at least 30 days prior to the
anniversary date of establishment of the Fund, furnish to the Grantor and to the USACE/DENR
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a statement confirming the value of the Trust. Any securities in the Fund shall be valued at market
value as of no more than 60 days prior to the anniversary date of establishment of the fund. The
failure of the Grantor to object in writing to the Trustee within 90 days after the statement has
been furnished to the Grantor and the USACE/DENR shall constitute a conclusively binding assent
by the Grantor, barring the Grantor from asserting any claim or liability against the Trustee with
respect to matters disclosed in the statement.
Section 2. Advice of Counsel. The Trustee may from time to time consult with counsel, who
may be counsel to the Grantor, with respect to any question arising as to the monitoring of this
Agreement or any action to be taken hereunder. The Trustee shall be fully protected, to the extent
permitted by law, in acting upon the advice of counsel.
Section 13. Trustee Compensation. The Trustee is authorized to charge against the principal
of the Trust its published Trust fee schedule in effect at the time services are rendered.
Section 14. Successor Trustee. The Trustee may resign or the Grantor may replace the
Trustee, but such resignation or replacement shall not be effective until the Grantor has appointed
a successor Trustee, the successor Trustee is approved by the USACE/DENR, and this successor
accepts the appointment. The successor trustee shall have the same powers and duties as those
conferred upon the Trustee hereunder. Upon the successor trustee's acceptance of the appointment,
the Trustee shall assign, transfer, and pay over to the successor trustee the funds and properties
then constituting the Fund. If for any reason the Grantor cannot or does not act in the event of the
resignation of the Trustee, the Trustee may apply to a court of competent jurisdiction for the
appointment of a successor trustee or for instructions. The Trustee shall notify the USACE/DENR
in writing of such event. The successor trustee shall specify the date on which it assumes
administration of the trust in a writing sent to the Grantor, USACE/DENR, and the present
Trustee by certified mail 10 days before such change becomes effective. Any expenses incurred
by the Trustee as a result of any of the acts contemplated by this Section shall be paid as provided
in Section 10.
Section 15. Instructions to the Trustee. All orders, requests, and instructions by the Grantor
to the Trustee shall be in writing, signed by such persons as are designated in the attached Exhibit
A or such other designees as the Grantor may designate by amendment to Exhibit A The Trustee
shall be fully protected in acting without inquiry in accordance with the Grantor's orders, requests, .
and instructions. All orders, requests, and instructions by the DENR to the Trustee shall be in
writing, signed by the DENR's Division Director of Water Quality, or the designee, and the
Trustee shall act and shall be fully protected in acting in accordance with such orders, requests,
and instructions. The Trustee shall have the right to assume, in the absence of written notice to
the contrary, that no event constituting a change or a termination of the authority of any person
to act on behalf of the Grantor or the DENR hereunder has occurred. The Trustee shall have no
duty to act in the absence of such orders, requests, and instructions from the Grantor and/or the
DENR, except as provided for herein.
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Section 16. Amendment of A cement. This Agreement may be amended by an instrument hi
writing executed by the Grantor, the Trustee, and the USACE/DENR, or by the Trustee and the
USACE/DENR if the Grantor ceases to exist.
Section 17. Irrevocability and Termination. Subject to the right of the parties to amend this
Agreement as provided in Section 16, this Trust shall be irrevocable and shall continue until
terminated at the written agreement of the Grantor, the Trustee, and the USACE/DENR, or by
the Trustee and the USACE/DENR, if the Grantor ceases to exist. Upon termination of the Trust,
all remaining trust property, less final trust administration expenses, shall be delivered pursuant
to the written agreement terminating the Trust
Section 18. Immunity and Indemnification. The Trustee shall not incur personal liability of any
nature in connection with any act or omission, made in good faith, in the administration of this
Trust, or in carrying out any directions by the Grantor or the USACE/DENR issued in accordance
with this Agreement. The T7astee shall be indemnified and saved harmless by the Grant or from
the Trust Fund, or both, from and against any personal liability to which the Trustee may be
subjected by reason of any act or conduct in its official capacity, including all expenses reasonably
incurred in its defense in the event the Grantor fails to provide such defense.
Section 1 . Choice of Law. This Agreement shall be administered, construed, and enforced
according to the laws of the State of Florida.
Section 20. Interpretation. As used in this Agreement, words in the singular include the plural
and words in the plural include the singular. The descriptive headings for each Section of this
Agreement shall not affect the interpretation or the legal efficacy of this Agreement.
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IN WITNESS WHEREOF the parties have caused this Agreement to be executed by their
respective officers duly authorized and their corporate seals to be hereunto affixed and attested as
of the date first above written.
ATTEST GRANTOR
ECOSYSTEMS LAND MITIGATION
BANK CORPORATION
By:
Signature D. Miller McCarthy, President
(CORPORATE SEAL)
ATTEST TRUSTEE
SOUTHTRUST ASSET MANAGEMENT
COMPANY OF FLORIDA, N.A.
By:
Signature
(CORPORATE SEAL)
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NOTARY ACKNOWLEDGMENT OF GRANTOR'S SIGNATURE
STATE OF FLORIDA
COUNTY OF ORANGE
On this _ day of 1998, personally appeared D. Miller McCarthy, who being
by me duly sworn, acknowledged said instrument to be his free act and deed. Mr. McCarthy is
personally known to me, or has produced her (state) driver's license
bearing number
IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal.
Signature
Printed Name
(NOTARIAL SEAL) NOTARY PUBLIC, STATE OF
Commission expiration date
Serial Number, If any
NOTARY ACKNOWLEDGMENT OF TRUSTEE'S SIGNATURE
STATE OF FLORIDA
COUNTY OF PINELLAS
On this _ day of 1998, personally appeared ,
who being by me duly sworn, acknowledged said instrument to be his/her free act and deed.
is personally known to me, or has produced his/her
(state) driver's license bearing number
IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal.
Signature
Printed Name
(NOTARIAL SEAL) NOTARY PUBLIC, STATE OF
Commission expiration date
Serial Number, If any
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SCHEDULE A
MBI Permit Number: 199506135 (JP-ME)
Name: Task 3-Cape Fear Mitigation Banking Instrument
Address: Cumberland County
North Carolina
Task 3
Monitoring and Maintenance
Care Cost Estimates: $100.000.00

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SCHEDULE B
Description Bond Number
Mitigation Bank Monitoring/
Maintenance Performance Bond
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EDIT A
Designated Person: D. Miller McCarthy
Ecosystems Land Mitigation Bank Corporation
1555 Howell Branch Road
Suite C-200
Winter Park, Florida 32789

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MITIGATION BANKING INSTRUMENT
AGREEMENT TO ESTABLISH THE
BARRA FARMS CAPE FEAR REGIONAL MITIGATION BANK
IN CUMBERLAND COUNTY, NORTH CAROLINA
Prepared for:
Ecosystems Land Mitigation Bank Corporation
6200 Falls of Neuse Rd.
Raleigh, NC 27609
1555 Howell Branch Road
Winter Park, Florida 32789
Prepared by:
EcoScience Corporation
612 Wade Avenue, Suite 200
Raleigh, North Carolina 27605
EcoScience
August 1998
MITIGATION BANKING INSTRUMENT
AGREEMENT TO ESTABLISH THE
BARRA FARMS CAPE FEAR REGIONAL MITIGATION BANK
IN CUMBERLAND COUNTY, NORTH CAROLINA
1.0 PREAMBLE
This agreement made and entered into on the day of , 199_, by Ecosystems
Land Mitigation Bank Corporation, hereinafter Sponsor, and the U.S. Army Corps of Engineers
(USACE), the U.S. Environmental Protection Agency (USEPA), the U. S. Fish and Wildlife
Service (USFWS), the North Carolina Wildlife Resources Commission (NCWRC), and the North
Carolina Division of Water Quality (NCDWQ), hereinafter collectively referred to as the
Mitigation Bank Review Team (MBRT).
The purpose of this Agreement is to establish a mitigation bank designed to provide
compensatory mitigation for unavoidable wetland and stream impacts authorized by Section
404 Clean Water Act permits or Section 401 Water Quality Certifications in appropriate
circumstances.
The Sponsor is the record owner of that certain parcel of land containing approximately 623
acres located in Cumberland County, North Carolina described in the Barra Farms Cape Fear
Regional Mitigation Bank Stream and Wetland Mitigation Plan (Mitigation Plan). The
Mitigation Plan is attached hereto and incorporated herein by reference. The Mitigation Plan
is hereto revised as described in Exhibit A of this Banking Instrument (Supplemental Appendix
to the Mitigation Plan, Response to MBRT Comments and Revisions to the Mitigation Plan).
The agencies comprising the MBRT agree that the Bank Site is a suitable mitigation bank site,
and that implementation of the Mitigation Plan is likely to result in net gains in wetland and
` stream functions at the Bank Site.
Therefore, it is mutually agreed among the parties to this agreement that the following
provisions are adopted and will be implemented upon signature of this agreement.
Page 1 of 13
State of North Carolina
Department of Environment
and Natural Resources
Division of Water Quality
James B. Hunt, Jr., Governor
Wayne McDevitt, Secretary
A. Preston Howard, Jr., P.E., Director
Dr. Jerry McCrain
EcoScience
612 Wade Avenue
Suite 200
Raleigh, NC 27605
Dear Dr. McCrain,
A ??
D E N R
July 27, 1998
The Division of Water Quality submits the following comments in response to your letter
dated July 6th requesting comments on the Mitigation Banking Instrument for the Barra
Farms Cape Fear Regional Mitigation Bank (BFCFRMB). In addition, by copy of this
letter, the Division is requesting that the COE schedule a meeting of the MBRT to
discuss the remaining issues concerning the MBI.
1. Page 1 - V paragraph, just include NCDWQ and eliminate the reference to
the North Carolina Wetland Restoration Program.
2. Page 2 - 2°d paragraph, 2nd sentence, add " or request additional information"
after "MBRT shall review..."
3. Page 6 - 3`d paragraph, should read "...that Bank Service Area expansion will
be considered if: 1) the area of the Bank is expanded; and 2) project specific
needs are justified and approved by the MBRT.
4. Page 7 - 2nd paragraph, change " low order" in both cases to " first order".
5. Page 7 - Credit Release Schedule, general note: credits cannot be released
each year until the MBRT has reviewed the monitoring data and determined
that the success criteria have been met.
6. Page 12 - please refer to Mac Haupt as the contact for NCDWQ regarding
BFCFRMB, he will coordinate the comments for DWQ.
7. Page 13 - the signatory for NCDWQ will be A. Preston Howard, Jr., P.E.,
Director.
Appendix A comments:
Section E. Stream Monitoring, BFCFRMB must measure velocity in order to
determine discharge. In addition, biological monitoring must be undertaken each
year to compare to the reference reach and each previous year. Stream channel
cross-sections should be reported each year as well on MBRT agreed upon stream
reaches.
P.O. Box 29535, Raleigh, North Carolina 27626-0535 Telephone [phone] FAX [phone]
An Equal Opportunity Affirmative Action Employer 50% recycled/ 10% post-consumer paper
A
Stream Success Criteria
The stream success criteria needs to contain three fundamental components:
1. A target stream classification;
2. Target base and peak flow numbers with an MBRT agreed upon error
bar (DWQ suggests 25%); and
3. Statistical analyses of increased stream faunal recruitment and
diversity.
During the July 20"' site visit with representatives of EcoScience, the placement
of the stream gauges was noted. Based on this examination, DWQ recommends
that both gauges be relocated for the following reasons: 1) the gauge in the
middle reach was placed in a cut path where no real channel existed, and 2) the
gauge placed towards the end of the reach was located directly in front of the
culvert leading out of the site. Because of the damming effect of this location, we
believe this location would give a faulty reading. DWQ feels that the stream
gauges should be placed in a portion of the relict channel in the middle and
towards the end of the current reach. DWQ would be glad to assist in the
recommended placement if ECOBANK would like some guidance.
In addition, DWQ felt that the quality of stream gauges were inferior and unlikely
to provide accurate readings for the duration of the required 5-year monitoring
period. Stream gauges can be purchased from a number of suppliers such as
Forestry Suppliers or Ben Meadows for approximately $25 each.
Thank you for the opportunity to provide comments on the BFCFRMB. We also
appreciate your cooperation in arranging the site visit. I can be reached at (919)
733-5083, extension 251 if you have questions concerning these comments.
Sincerely,
Mac Haupt
NCDWQ-WRP
Cc: Kevin Moody, USFWS
Scott McClendon, USACE
Bennett Wynne, NCWRC
Alan Fickett, ECOBANK
John Dorney/Cyndi Bell, NCDWQ
Ken Averitte, NCDWQ-FRO
Kathy Matthews, USEPA

S'
KN North Carolina Wildlife Resources Commission®
312 N. Salisbury Street, Raleigh, North Carolina 27604-1188, 919-733-3391
Charles R. Fullwood, Executive Director
MEMORANDUM
TO: Scott McClendon
Army Corps of Engineers
Jerry McCrain
EcoScience
FROM: Bennett Wynne /1,,?"
Habitat Conservation Section
DATE: September 11, 1998
SUBJECT: Mitigation Banking Instrument (MBI) for the Barra Farms Cape Fear Regional
Mitigation Bank, off NC 210 southeast of Fayetteville, Cumberland County, North
Carolina.
I understand there may be a MBRT meeting to discuss the Barra Farms NMI on
September 23 or 29. Unfortunately, I have prior commitments and will be unable to attend on
either date. However, I hope you will accept the following few comments.
1. Regarding stream mitigation, I have a concern that first order stream restoration (or
enhancement) at Barra Farms will be used to mitigate adverse impacts to second, third, or
larger order streams in the service area. Second, third, and larger order streams provide
more aquatic habitat than first order streams and, if impacted, should be mitigated for on a
stream of the same order. I agree with NCWRP's recommendation that "low order" be
replaced with "first order" in paragraphs 1 and 2 on page 7 of the MBI.
2. A wetland mitigation credit is defined in paragraph 3 on page 7 of the MBI. Including
a stream mitigation credit definition here (1 linear foot of stream = 1 credit?) would
promote a clearer understanding of the 2 types of mitigation credits.
RECEIVED
SEP 18 1998
NC WETLANDS
RESTORATION
~ w
Barra Farms MBI 2 9/16/98
3. Regarding whether stream mitigation in the Harris Creek headwaters constitutes
restoration or enhancement, based on my pre-treatment and post-treatment observations, I
lean toward considering the work restoration. I saw no stream flow or evidence of stream
flow (scouring or accumulated sediments) during our pre-treatment site visit. Granted, I
was unable to observe the treated stream reach in its entirety during our April 21, 1998
site visit. I would gladly revisit the site, however, to make a more complete observation if
it would be of benefit to the MBRT.
Thank you for the opportunity to further comment. Please call me if you have questions
at [phone].
cc: Kevin Moody, USFWS
Cyndi Bell, NCDWQ
Mac Haupt, NCDWQ-Wetland Restoration Program
2.0 GENERAL PROVISIONS
2.1 Goals: The goal of the mitigation bank is to restore and enhance streams, riverine
wetlands, nonriverine wetlands, and their functions and values. Restoration and enhancement
activities are designed to compensate in appropriate circumstances for unavoidable wetland
and stream impacts authorized by Clean Water Act permits or Water Quality Certifications in
circumstances deemed appropriate by USACE or NCDWQ after consultation with members
of the MBRT.
2.2 Additions to the Bank Site: _ The Sponsor may request the addition of adjacent lands to
the Bank Site. Such a request shall be accompanied by a Site-Specific Restoration Plan which
follows the general format of the Mitigation Plan and depicts the location and describes t
J hydraulic interaction between the addition and the existing Bank Site. In addition, the Site-
Specific Restoration Plan shall include specific provisions concerning credit ratios, a schedule
for release of credits, financial assurances, and property disposition. The MBRT shall review
the Site-Specific Restoration Plan, request additional information if needed, and
approve/disapprove the request for addition within 90 days of submittal. In the event the
request for addition is not approved, specific modification suggestions may be provided by
the MBRT to the Sponsor. In the event of approval, the additional area shall be deemed a
portion of the Bank Site and the contents of this agreement not inconsistent with the
approved Site-Specific Restoration Plan shall apply to that area. An updated mitigation credit
determination will subsequently be submitted which depicts the amount of credit, type of
credit, and credit release schedule generated by approved additions to the Bank Site.
2.3 Use of Credits: Use of credits from the Bank to offset wetland and stream impacts
authorized by Clean Water Act permits or Water Quality Certifications must be in compliance
with the Clean Water Act and implementing regulations, including but not limited to the
404(b)(1) Guidelines, and the National Environmental Policy Act, and all other applicable
Federal and State legislation, rules, regulations, and policies. This agreement has been
drafted following the guidelines set forth in the "Federal Guidance for the Establishment, Use,
and Operation of Mitigation Banks," 60 Fed. Reg. 58605, November 28, 1995 (Guidance).
Page 2 of 13
2.4 Role of the MBRT: The MBRT shall be chaired by the representative from USACE,
Wilmington District. The MBRT shall review monitoring and accounting reports more fully
described in Sections 3.3 and 4.4 below. In addition, the MBRT will review requests for
additions to the Bank (Section 2.2), or proposals for remedial actions proposed by the
Sponsor, or any of the agencies represented on the MBRT. The MBRT's role and
responsibilities are more fully set forth in Sections II.C. 3 & 6 of the Guidance. The MBRT will
work to reach consensus on its actions.
USACE, after any required notice and comment process, shall make all decisions concerning
the amount and type of compensatory mitigation to be required for unavoidable, permitted
wetland and stream impacts, and whether or not the use of credits from the Bank is
appropriate to offset those impacts.
The parties to this agreement understand that, where practicable, on-site, in-kind
compensatory mitigation is preferred, unless use of the Bank is determined by USACE to be
environmentally preferable or it is determined by USACE that practicable on-site and/or in-kind
mitigation opportunities are not available.
3.0 MITIGATION PLAN
3.1 General Description: The Bank Site is composed of approximately 623 acres (ac) of
interstream flats, former Carolina Bays, and historic stream origins which have been
ditched and drained to support agricultural and silvicultural activities. This site offers
opportunities for non riven ne_wetland, riverine wetland, and stream restoration and
enhancement. In addition, surrounding areas within the former wetland complex are
available for expansion of the Bank Site which can be phased over a period of time. A
more detailed description of the baseline conditions on the site is contained in Sections
1.0 through 4.0 of the Mitigation Plan.
3.2 Site Modifications: The Sponsor has completed all work described in Section 5.0 of the
Mitigation Plan. Stream repair and ephemeral pool construction has been completed and ditch
flows diverted into th restored floodplain where planned. Ditches have been backfilled and
Page 3 of 13

spoil/roadway fill recontoured within the ditch corridors. Soil preparation and planting of
characteristic wetland trees has been completed. The purpose of the modifications, and the
objective of the Bank, is to re-direct the watershed into 2400 linear feet of historic
channel; to restore 451 acres of drained former wetlands to riverine and nonriverine wetlands,
and to enhance 172 acres of disturbed wetlands (Table 1, copied from Table 10 in the
Mitigation Plan).
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3.3 Site Monitoring: The Sponsor shall monitor the Bank Site as described in Section 7.0
of the Mitigation Plan (Monitoring Plan ) and as amended in Exhibit A (Revisions to the
Mitigation Plan). The Bank Site will be monitored for a five year period after implementation
is completed or until such time as the MBRT determines that the Success Criteria have been
met, whichever occurs later.
The Sponsor is responsible for assuring the success of the restoration and enhancement
activities at the Bank Site, and for the overall operation and management of the Bank.
The Sponsor shall provide the reports described in Section 7.0 of the Mitigation Plan to each
member of the MBRT.
3.4 Contingency: USACE shall review said reports, and may, at any time, after consultation
with the Sponsor and the MBRT, direct the Sponsor to take remedial action at the Bank Site.
Remedial action required by USACE shall be designed to achieve the success criteria specified
in Section 7.0 of the Mitigation Plan and Exhibit A. All remedial actions required under this
paragraph shall include a schedule, which shall take into account physical and climatic
conditions.
The Sponsor shall implement any remedial measures required pursuant to the above
paragraph.
In the event the Sponsor determines that remedial action may be necessary to achieve the
required monitoring and maintenance criteria, it shall provide notice of such proposed remedial
action to all members of the MBRT. No remedial actions shall be taken without the
concurrence of USACE, in consultation with the MBRT.
Page 4 of 13
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4.0 USE OF MITIGATION CREDITS
4.1 Geographic Service Area: The Geographic Service Area (GSA) is the designated area
wherein a bank can reasonably be expected to provide appropriate compensation for impacts
to similar wetland and/or other stream or aquatic resources. The geomorphic setting of the
Bank includes nonriverine flats, nonriverine depressions, and riverine, first order blackwater
L streams within the Coastal Plain region of the Cape Fear River Basin. The Bank is located in
proximity to, or on the boundary between three hydrophysiographic cataloging units depicted
on the "Hydrologic Unit Map - 1974 State of North Carolina", prepared by the U.S. Geological
Survey. Cataloging units, located within the inner Coastal Plan region of the river basin,
\ include 03030004, 03030005, and 03030006 as depicted in Figure 15 of the Mitigation
Plan. These Cataloging Units support similar Coastal Plain natural communities, wetlands,
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and drain into the lower Cape Fear River. Therefore, the eastern and western limits of the
service area are defined by the outer boundaries of the Cape Fear River Basin contained within
the above-listed Cataloging Units.
The southern and northern boundaries of these river sub-basins have been modified based
primarily upon 11 digit watersheds in the region. To the south, watersheds in the Wilmington /
Area have been excluded due to Karst geomorphology and regional aquifer issues identified
by the MBRT. The MBRT has further restricted the service area north of Wilmington due to
expected development patterns in the region and the potential for wetland compensatory
mitigation in proximity to these developments. To the north, the service area has been
reduced along 11 digit watershed boundaries to exclude Raleigh Belt portions of the Cape
Fear basin (Figure 15 of the Mitigation Plan).
Use of the Bank for compensatory mitigation may also be considered outside of the
designated Geographic Service Area if this option is preferable to other mitigation alternatives.
It is understood that Geographic Service Area expansion will be considered if the area of the
Bank is expanded.
Page 6 of 13
4.2 Amount and Type of Credit: The Mitigation Plan is intended to result in the forms and
amounts, in acres, of wetland compensatory mitigation depicted in Table 1 (copied from Table
10 of the Mitigation Plan). Successful implementation of the Mitigation Plan will result in the
creation of 240 riverine and nonriverine wetland mitigation credits. In addition, 2400 linear
feet of first order, stream channel credit will be generated (Table 1).
It is anticipated by the parties to this Agreement that use of mitigation credits shall be "in-
kind"; riverine wetland, nonriverine wetland, and first order, stream channel credits will be
used to offset riverine wetland, nonriverine wetland, and first order, stream channel impacts.
It is anticipated by the parties to this agreement that in most cases in which USACE, after
consultation with members of the MBRT, has determined that mitigation credits from the bank
may be used to offset wetland and stream impacts authorized by Department of the Army
permits, for every acre of impact, one credit will be debited from the Bank. Deviations from
the one to one compensation ratio will be based on considerations of value of the wetlands
impacted, the severity of the impacts to wetlands, whether this compensatory mitigation is
in-kind, and physical proximity of the wetland impacts to the Bank Site.
All decisions concerning the appropriateness of using credits from the Bank to offset impacts
to waters and wetlands, as well as all decisions concerning the amount and type of such
credits to be used to offset wetland and water impacts authorized by Department of the Army
permits, shall be made by USACE, pursuant to the Clean Water Act, and implementing
regulations and guidance, after notice of any proposed use of the Bank to the members of the
MBRT, and consultation with the members of the MBRT concerning such use.
4.3 Credit Release Schedule: The credit release schedule for the Bank will be based upon
successful completion of the following tasks:
Task 1: Task 1 entails acquisition and protection of the Bank site, completion of detailed
mitigation planning, review of plan parameters by the MBRT, and signing of the MBI.
Protective covenants, easements, and bonds on the property will also be obtained. Upon
completion of Task I, 15% of the total Bank credits will be released.
Page 7 of 13
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Task 2: Task 2 includes completion of all mitigation implementation activities at the Bank.
Stream repair and ephemeral pool construction will be completed and ditch flows diverted into
the restored floodplain where planned. Ditches will be backfilled and spoil/roadway fill will
be recontoured within the ditch corridors. Subsequently, soil preparation and planting of
characteristic wetland trees will be completed. Documentation will be submitted to the MBRT
certifying completion of Task 2. Upon completion of Task 2, 15% of the total Bank credits
will be released (30% cumulative).
Task 3: Task 3 involves implementation of the monitoring plan and submittal of annual
reports to the MBRT for a five year monitoring period, or until success criteria have been
fulfilled. Hydrology and vegetation sampling will be completed towards the end of each
growing season (between September 1 and October 31). The vegetation and hydrology data
will be compiled and success/failure documented within each Mitigation Design Map Unit (as
depicted in the Mitigation Plan). The data will be submitted to the MBRT as an Annual
Wetland Monitoring Report (AWMR). Upon submittal of the AWMR showing that success
criteria are being fulfilled, wetland credits will be released as follows.
First AWMR (November 1998): 10% (40% cumulative)
Second AWMR (November 1999): 15% (55% cumulative)
Third AWMR (November 2000): 15% (70% cumulative)
Fourth AWMR (November 2001): 10% (80% cumulative)
Fifth AWMR (November 2002): 20% (100% cumulative)
Credit releases for Task 3 will only occur if success criteria are fulfilled as stipulated in the
Mitigation Plan and Exhibit A. If wetland or stream recovery is delayed (i.e. lacking wetland
plants or hydrology), the credit will be reserved for release upon submittal of a subsequent
report which verifies restoration success.
The final credit allotment will be released upon completion of the fifth AWMR, fulfillment of
success criteria, and provisions for dispensation/long term management of the property.
ECOBANK reserves the right to request an expedited release of credits if wetland restoration
success is apparent over a period of time, and success criteria are met and exceeded.
Page 9 of 13
4.4 Accounting Procedures: The Sponsor shall develop accounting procedures for
maintaining accurate records of debits made from the bank, acceptable to the MBRT. Such
procedures shall include the generation of a report by the Sponsor showing credits used at
the time they are debited from the bank, which the Sponsor shall provide within 30 days of
the debit to each member of the MBRT. In addition, the Sponsor shall prepare an annual
report on each anniversary of the date of execution of this agreement, showing all credits
used, and the balance of credits remaining, to each member of the MBRT, until such time as
all of the credits have been utilized, or this agreement is otherwise terminated. All reports
will identify credits debited and remaining by type of credit (e.g., nonriverine forested
wetland), and shall include for each reported debit the USACE Action ID number for the
permit for which the credits were used. Exhibit B comprises a sample master credit ledger
which will be used to track and report Bank debits.
5.0 PROPERTY DISPOSITION
Ownership of the Bank will reside with the Sponsor who intends to provide fee simple
transfer of the property to the appropriate land management organization as determined by
the MBRT. Fee simple transfer will occur upon completion of debiting of the Bank or the end
of the monitoring period, which ever is longer. The transferee will be responsible for
maintaining the Bank in accordance with a Conservation Easement placed on the Bank Site
for perpetual protection as described in Section 8.0 of the Mitigation Plan.
6.0 FINANCIAL ASSURANCES
6.1 Monitoring and Maintenance Bonds: The Sponsor is responsible for securing adequate
construction, monitoring, and maintenance bonds as a form of financial assurance to cover
contingency actions in the event of Bank default or failure. Construction and implementation
activities at the Bank Site were completed in January 1998; therefore, construction bonds
are no longer necessary. However, monitoring and maintenance bonds have been obtained
to ensure monitoring for a five year period and to ensure that contingency actions are
implemented in the event of wetland or stream restoration failure. Financial Assurance
Documents in the form of Monitoring and Maintenance Bonds are included as Exhibit C.
Page 10 of 13
6.2 Management Trust Fund
A separate, long-term trust fund will be provided by the Sponsor for long-term maintenance,
management, and remedial actions. The trust fund will be established upon completion of
debiting of the Bank or at the end of the monitoring period, which ever is longer. The trust
fund, included as Exhibit D, will provide financial support to the land management
organization designated for fee simple transfer of the land by the MBRT.
7.0 MISCELLANEOUS
This agreement may be amended with the written consent of all the parties.
Notices, requests, and required reports shall be sent by regular mail to each of the parties at
their respective addresses provided below:
Sponsor:
Alan G. Fickett, Ph.D.
Ecosystems Land Mitigation Bank Corporation
1555 Howell Branch Road
Winter Park, Florida 32789
USACE:
Scott McLendon
U. S. Army Corps of Engineers
Post Office Box 1890
Wilmington, NC 27889-1000
USEPA:
Kathy Matthews
Environmental Protection Agency
Atlanta Federal Center
61 Forsythe St.
Atlanta, GA 30303
USFWS:
Kevin Moody
U. S. Fish and Wildlife Service
P.O. Box 3326
Raleigh, NC 27636
Page 11 of 13
NCWRC:
Bennett Wynne
North Carolina Wildlife Resources Commission
901 Laroque Ave.
Kinston, NC 28501
NCDWQ:
Mac Haupt
North Carolina Division of Water Quality
P.O. Box 29535
Raleigh, NC 27626-0535
Page 12 of 13
IN WITNESS WHEREOF, the parties hereto have executed this Agreement for the Barra Farms
Cape Fear Regional Mitigation Bank.
Col. Terry R. Youngbluth
Wilmington District Engineer
U.S. Army Corps of Engineers
John M. Hefner
Ecological Services Supervisor
U. S. Fish and Wildlife Service
Frank McBride
Director
North Carolina Wildlife Resources Commission
William L. Cox
Chief, Wetlands Section, Wetlands,
Coastal, and Water Quality Grants
Branch, Water Management Division
U.S. Environmental Protection Agency
Preston Howard, Jr., P.E.
Director
North Carolina Division of Water Quality
Alan G. Fickett
Ecosystems Land Mitigation Bank Corp.
Page 13 of 13
EXHIBIT A
SUPPLEMENTAL APPENDIX TO THE MITIGATION PLAN
RESPONSE TO MBRT COMMENTS AND REVISIONS
TO THE MITIGATION PLAN
EXHIBIT B
SAMPLE MASTER CREDIT LEDGER
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MONITORING AND MAINTENANCE BOND
DOCUMENTATION
EXHIBIT D
MANAGEMENT TRUST FUND DOCUMENTATION
Stream Monitoring
Stream monitoring and success criteria will be established through measurement of in-stream flows,
measurement of stream geometry, and measurement of biological stream attributes.
In-stream flows will be measured through placement of two continuos monitoring stream flow
gauges. The gauges will be capable of recording velocity (ft/second) and discharge (cubic feet per
second, CFS). Discharge is typically calculated by measuring height (or depth) of the water column
and inputting the resulting cross-section. One gauge will be placed within the central reach of the
restored stream channel on the mitigation site. The gauge will be located approximately 100 feet
downstream of a former dirt road crossing in central portions of the site (Drainage Area: 2.5 mi2).
The second gauge will be placed within the riverine wetland reference site in Bladen Lakes State
Forest. The reference gauge will be located a minimum of 100 feet upstream of the State road
crossing (Drainage Area: 6.7 mi2). The data -will be reported as mean daily flows for velocity
(ft/second) and discharge (CFS) in tabular and graphic format.
Stream geometry will be measured along a fixed stream reach located immediately upstream and/or
downstream of the stream gauge located on the mitigation site. The stream reach will extend for a
minimum of 200 feet along the restored channel. Annual fall monitoring will include development
of a channel plan view, three channel cross-sections, pebble counts, and a water surface profile of
the channel. The data will be presented in graphic and tabular format as summarized in the attached
table. Data to be presented will include: 1) cross-sectional area; 2) bankfull width; 3) average depth;
4) average width; 5) width/depth ratio; 6) meander wavelength; 7) beltwidth; 8) water surface slope;
9) sinuosity; and 10) stream substrate composition (D15, D35, D50, D84, D95). The stream will
subsequently be classified according to stream geometry and substrate (Rosgen 1996). Significant
changes in channel morphology will be tracked and reported by comparing data between the
reference stream and mitigation stream and by comparing data in each successive monitoring year.
Biological stream attributes will be measured annually at the mitigation site and in the reference
wetland site between April 15 and May 15 of each year. Aquatic surveys will record
presence/absence of macro-invertebrate, reptile, amphibian, and fish species populations.
Presence/absence of species populations identified will be reported along with observations of
changes to in-stream aquatic habitat or species presence/absence over time.
Stream Success Criteria
Success criteria for stream restoration will include: 1) stream classification; 2) target mean daily
stream flows; and 3) increased stream faunal recruitment and diversity.
Stream geometry measurements will be incorporated into the Rosgen stream classification system.
The channel and flood prone area must support characteristics supporting an E, C, or DA stream type
to fulfill the success criteria.
In-stream flow measurements must indicate that the mitigation stream reach supports mean daily
flows per unit of drainage area equal to, or exceeding the mean daily flows per unit of drainage area
within the riverine reference reach. The reference stream reach supports an approximate 6.7 mil
drainage area while the mitigation stream reach supports an approximate 2.5 mil drainage area (37%

of reference). Therefore, mean daily flows in the mitigation reach must equal to, or exceed 30% of
the mean daily flows in reference. If the mitigation reach and/or reference reach support no
measurable flow during a drought period, fulfillment of success criteria will be based upon mean
daily flows prior to, and following the no flow condition.
Biological monitoring will indicate similar species diversity as compared to reference conditions or
an increase in species diversity towards reference conditions over time. Specifically, the type and
number of species populations identified in the mitigation reach must be equal to, or increasing
towards, the type and number of species identified in the reference reach in each successive
monitoring year.
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Stream Restoration Notes
Stream Restoration: restoring natural function, stability, and biological condition (Rosgen, 1997).
Morphological Definition: The practice of rehabilitation or restoration of a stream's channel to its
natural, stable, dimension, profile, and pattern.
Natural Stability refers to the ability of a stream, over time, to transport the flows and sediment of
its watershed in such a manner that the stream maintains its dimension, pattern, and profile without either
aggrading or degrading (Rosgen, 1996).
Dimension
Bankfull Cross-Section
Flood Prone Area
Entrenchment Ratio
Velocity
Discharge
Pattern
Sinuosity
Meander Geometry (length, belt width, radius of curvature)
Profile
Water surface slope
Valley Slope
Riffle/Pool sequence
Stream restoration would be returning unstable stream back to its historic (or reference) dimension, pattern,
and profile.
Imperative in stream restoration is the consideration of upstream and downstream reaches in addition to
current and future plans of the contributing watershed relating to volume and duration of discharge.
Stream Stabilization
1) Natural (root wads)/fiber rolls
2) Bioengineered materials
3) Hardened engineering materils (rip rap)
Stream Mitigation
-return of lost function, not delineation
-reference reach
-monitoring (success criteria? Physical,biological)
Success criteria should be measurable, replace lost functions, model reference reach or
regional curve, take into account watershed needs.
-Ratios (Restoration, enhancement, preservation)
?,W AjFRQG Michael F. Easley, Governor
William G. Ross Jr., Secretary
North Carolina Department of Environment and Natural Resources
j Gregory J. Thorpe, Ph.D.
-? Acting Director
Division of Water Quality
August 28, 2001
EcoBank, LLC
1555 Howell Branch Rd.
Winter Park, FL 32789
Re: Barra Farms Cape Fear Regional Mitigation Bank
Dear Sirs,
Enclosed is a copy of a survey to gather information on Private Mitigation Banks in
North Carolina that have a signed MBI and are in operation. We ask that you provide us with the
requested information on the bank as accurately as possible.
As the survey indicates, we are required to report the status of Private Mitigation Banks
in North Carolina by statute. Thank you for your time. If you have any questions, please contact
Mac Haupt at 919-733-5314.
Sincerely,
d,? ??-?eareklL
Ronald E. Ferrell
Program Manager
Attachment: NC Private Mitigation Bank Survey
14CDENR
Wetlands Restoration Program 1619 Mail Service Center Raleigh, NC 27699-1619 [phone] Customer Service
320 West Jones Street Raleigh, NC 27603 Fax: [phone] 623-7748

NORTH CAROLINA PRIVATE MITIGATION BANK SURVEY
The North Carolina Wetlands Restoration Program (NCWRP) is requesting restoration
cost and credit inventory information for private mitigation banks in North Carolina. This
information will allow us to analyze our costs and accurately determine our future fee
structure. General Statute 143-214.13 refers to the Wetlands Restoration Program's
reporting requirement regarding our own costs and a cost comparison with private
mitigation banks operating in North Carolina. The statue is listed below:
.9 143-214.13. Wetlands Restoration Program: reporting requirement
The Department of Environment, Health, and Natural Resources shall report each year
by November 1 to the Environmental Review Commission regarding its progress in
implementing the Wetlands Restoration Program and its use of the funds in the Wetlands
Restoration Fund. The report shall document statewide wetlands losses and gains and
compensatory mitigation performed under G.S. 143-214.8 through G.S. 143-214.12. The
report shall also provide an accounting of receipts and disbursements of -the Wetlands
Restoration Fund, an analysis of the per-acre cost of wetlands restoration, and a cost
comparison on a per-acre basis between the State's Wetland Restoration Program and
private mitigation banks. The Department shall also send a copy of its report to the
Fiscal Research Division of the General Assembly.
Added by Laws 1996, 2 Ex.Sess., c. 18, s 27.4(a), eff. July 1, 1996.
If you are a bank sponsor that has more than one bank operating in North Carolina, we
request that you fill a sheet for each bank.
We ask that you provide us the restoration cost data by September 14, 2001. Thank you
very much.
Mail to: NC Wetlands Restoration Program
Attention: Mac Haupt
1619 Mail Service Center
Raleigh, NC 27699-1619
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Private Mitigation Bank Survey
What is the cost of wetland restoration (cost/acre) for the following categories:
Land purchase
Pre-Monitoring
Design
Construction
a. Hydrological Modifications (include cost. of
structures)
b. Planting (include cost of vegetation)
Post-Monitoring
Long-term management
2. What is the cost of stream restoration (cost/linear foot) for the following categories:
Land purchase
Pre-Monitoring
Design
Construction
c. Hydrological Modifications (include cost of
structures)
d. Planting (include cost of vegetation)
Post-Monitoring
Long-term management
3. Inventory of Bank Credits
Total Credits of Bank (the number bank started with, e.g. 20 non-riparian
restoration credits, 10 non-riparian enhancement credits)
Credits Sold
•.
Remaining Credits
4. What is the Cost of a Credit in your Bank (What you charge to sell 1 credit)
Salt-water wetland
Riparian wetland
Non-Riparian wetland
Stream
NORTH CAROLINA DEPARTMENT OF
ENVIRONMENT AND NATURAL RESOURCES
NCDENR DIVISION OF WATER QUALITY
JAMES B.. HUNT JR.
GOVERNOR
BILL HOLMAN
SECRETARY - June 2, 2000
Mr.,Scott McLendon
Wilmington District, Corps of Engineers
KERR'T. STEVENS' P .O. Box 1890
DIRECTOR Wilmington, NC 28402-1890
RE: Barra Farms Cape Fear Regional Mitigation Bank
Barra Farms Wetland Monitoring Report (Year 2)
COE Action Item No. 199704890
Dear Mr. McLendon,
The Division of Water Quality (hereafter referred to as the Division) has
reviewed the Wetland Monitoring Report: Year 2 from Barra Farms Cape Fear
Regional Bank. The comments which follow also include observations from the
site visit conducted May 11, 2000.
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Based on evaluation of the presented data and several field inspections, the
Division feels that Barra Farms has met hydrologic success criteria as required
for Year 2 monitoring. The Division appreciates the presentation of the RDS
well data in graphical format as requested in our June 22, 1999 letter for
Monitoring Report Year 1. However, as we pointed out on the May 11, 2000 site
visit we need to know the location of these wells. Evidently, the labeling of the
RDS wells in the graphical format were the well serial numbers, and there was no
way to identify the wells with the map. In addition, in our June 22, 1999 letter
we requested that a correlation be performed between the manual wells and the
RDS wells. Upon inspection of the drainage pipes which were installed, the
Division does not believe that these pipes are affecting drainage of the
groundwater on site.
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WETLANDS RESTORATION PROGRAM
1619 MAIL SERVICE CENTER, RALEIGH, NC 27699-1619
website: h2o.enr.state.ne.us PHONE [phone] FAX [phone]
AN EQUAL OPPORTUNITY / AFFIRMATIVE ACTION EMPLOYER - 50% RECYCLED/10% POST-CONSUMER PAPER

Vegetation
The vegetation success criteria is the central issue in the decision to release the next
phase (Year 2) of credits (15%). The success criteria is as follows: "...a minimum mean
densit? Qf 320 characteristic trees/acre. At least five character tree species must be
present. and no species can comprise more than 20,2ercentt Qfthe 320 stem/acre total.
Softwood s en ties (ex: loblolly 12ine. pond pine. and black willow) cannot comprise more
than 10 percent Qfthe 320 stem/acre requirement. "
EcoBank representatives replanted areas of deficiency (noted in our June 22, 1999 letter
concerning Monitoring Year 1 vegetation deficiencies) on February 8-11, 2000 with
43,000 seedlings. In addition, the Division approves of the new monitoring plan with
increased number of plots and size resulting in a larger portion of the site being sampled.
Land Management, Inc. monitored the new plantings in April to test for survivability at
leaf out. Based on the data in the supplemental report, they show Barra Farms currently
meeting the vegetation success criteria. However, the Division believes that in order to
release credits for Monitoring Year 2, monitoring of the newly planted seedlings must be
toward the end of the respective growing season.
The Division approves of the actions taken to reduce the 50-60 acre ponding. In addition,
the Division appreciates the reporting of the vegetation data in a plot format in the
Supplemental Actions Report.
Stream
The Division realizes that the Stream Restoration Monitoring Year 1 report is not
finalized as yet, however, we would like to relate several concerns noted on the May 11;
2000 site visit. First of all, in our June 22, 1999 letter we recommended that the
flowmeter at the outlet of the site be moved to the rear of the pipe. It appeared from the
site visit that the flowmeter had not been moved. The new placement of the flowmeter
would reduce the amount of misreadings caused by turbulence at the entrance of the
culvert.
Secondly, and the main concern for the Division, is the reference stream and the
placement of the flowmeter in one of three open culverts. As you may recall, the credit
release schedule for the stream restoration component of the bank is based on success
criteria related to the flow of the site as compared to the reference site. Due to the
location of the flowmeters in both the "restored" stream and the reference stream, the
Division does not believe an accurate comparison can be made between the restoration
and reference stream.

Recommendations
At the May 11, 2000 site visit, EcoBank Sponsors requested the immediate release of
Monitoring Year 2 (wetland) credits and after a fall monitoring, the release of Monitoring
Year (3) (wetland) credits.
The Division feels that it is inappropriate to release Year 2 credits based upon an April
monitoring report of recently planted seedlings. However, given the recent
improvements to the site, the Division would approve of an immediate partial release
(5%) of the credits. The Division recommends that to acquire the remainder of Year 2
credits (10%), another monitoring of the site be performed no earlier than the last week of
August. Once this report is submitted and the success criteria have been met, then the
remainder of Year 2 credits may be released. However, the Division believes that Year 3
credits would not be available until after the growing season in 2001. The Division feels
releasing Year 3 wetland credits for many trees that had only been planted for one
growing season is inconsistent with the purpose and intent of meeting success criteria for
each year in the credit release schedule.
Regarding the stream restoration component of the bank, the Division feels that the
stream monitoring would not initiate until both flowmeters are correctly installed and
functioning and the reference stream conditions are appropriate.
If you have any questions concerning these comments, I can be reached at 919-733-5314.
Respectfully,
?4c--
Mac Haupt
Implementation Coordinator
DWQ-Wetland Restoration Program
CC: John Dorney, DWQ-Wetlands/401 Unit
Ken Averitte, DWQ-FRO
Kathy Matthews, EPA
Bennett Wynne, NCWRC

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