20160977 Ver 2_signed Bucher MBI_20200217

AGREEMENT TO ESTABLISH THE BUCHER MITIGATION BANKING
INSTRUMENT IN THE UPPER NEUSE RIVER BASIN FOR RIPARIAN BUFFER
MITIGATION CREDITS PURSUANT TO THE FALLS LAKE WATER SUPPLY
NUTRIENT STRATEGY AND THE NEUSE RIVER BASIN NUTRIENT
MANAGEMENT STRATEGY
TABLE OF CONTENTS
I. PREAMBLE............................................................................................................................2
U. LOCATION AND GEOGRAPHIC SERVICE AREA ....................................................... 2
III. AUTHORITIES................................................................................................................... 3
IV. ESTABLISHMENT OF BANK PARCEL.......................................................................... 3
V. BANK PARCEL DEVELOPMENT PACKAGE............................................................... 4
VI. POST CONSTRUCTION DOCUMENTATION FOR THE BANK PARCEL ................. 6
VII. CALCULATION OF MITIGATION CREDITS FOR THE BANK PARCEL .................. 9
VIII. CREDIT RELEASE SCHEDULE................................................................................. 10
IX. PROCEDURE FOR DEBITING AND CREDITING MITIGATION CREDITS ............ 11
X. BANK PARCEL CLOSURE............................................................................................. 12
XI. GENERAL PROVISIONS FOR THE BANK PARCEL .................................................. 12
ATTACHMENTS & REFERENCES
A — Division of Water Resources Authority Document
B — Riparian Buffer Mitigation Rule'
C — Buffer Restoration & Preservation Ledger Template
1 http://reporis.oah.state.nc.us/neac/title°/a2015a%20%20environmental%20quality/chapter/`2002%20-
%20environmental%20management/subchapter%20b/ 15a°/u20ncac%2002b%20.0295.pdf
I

I. PREAMBLE
This Mitigation Banking Instrument ("Instrument") regarding the establishment, use,
operation, and maintenance of the Bucher Buffer Mitigation Bank Parcel ("Bank Parcel", to
provide Neuse Riparian Buffer mitigation credits ("Riparian Buffer Credits") is made and
entered into by and among EBX-Neuse 1, LLC acting as the Bank Sponsor ("Sponsor"), and
the North Carolina Department of Environmental Quality — Division of Water Resources
("DWR"). This Instrument is in accordance with the Consolidated Mitigation Rule 15A NCAC
02B .0295, which became effective on November 1, 2015 (Attachments B).
The purpose of this Bank is:
A. To restore and preserve riparian vegetation adjacent to mitigated streams with the intent to
improve water quality within the 8-digit Hydrologic Unit Code ("HUC") 03020201 Upper
Falls Lake Watershed of the Neuse River Basin (8-digit Hydrologic Unit Code ("HUC")
03020201).
B. To provide mitigation and sell any resulting Riparian Buffer Credits to third parties in the
Neuse River Basin, including the Falls Lake Watershed for development (both existing and
proposed) requiring such mitigation.
IL LOCATION AND GEOGRAPHIC SERVICE AREA
A. The Geographic Service Area ("GSA") is the designated area wherein a Bank can
reasonably be expected to sell Riparian Buffer Credits for impacts due to development
activities.
B. The GSA for this Instrument is limited to the 8-digit HUC 03020201 of the Neuse River
Basin in the State of North Carolina, United States Geological Survey.
C. Sale or transfer of Riparian Buffer Credits shall be limited to the 8-digit HUC 03020201
Neuse River Basin including the Falls Lake Watershed, unless otherwise authorized by the
DWR or delegated local government in accordance with 15A NCAC 02B .0295.
D. The following table provides site -specific details of the Bank Parcel proposed under this
Instrument, within the Neuse River Basin (8-digit HUC 03020201);
Table 1.0 — Site -specific Details
Bank
8-Digit USGS
DWR
Named
Parcel
County
Hydrologic
Project #
Project
Location
Receiving
Primary Land Use/s
Name
Unit Code
Stream
Mature natural forest,
Bucher
Durham
03020201
20160977v2
36.035494,
Rocky
some areas of non-
-78.786872
Branch
forested fields, and a
large in -line pond.
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III. AUTHORITIES
A. The Bank will be used to provide Riparian Buffer Credit in accordance with the
requirements in the DWR Authority document referenced herein as "Attachment A" and
attached to this Instrument.
B. Projects eligible for utilization of the credits are those requiring authorization under the
requirements of Attachment A and any new approved North Carolina ("State") statutes and
rules for the Neuse Nutrient Sensitive Waters Management Strategy and the Falls Lake
Water Supply Nutrient Strategy.
C. The selling of mitigation credits generated from the Bank Parcel approved under this
Instrument, shall be consistent with approved North Carolina ("State") statutes and rules
for the Neuse Nutrient Sensitive Waters Management Strategy and the Falls Lake Water
Supply Nutrient Strategy.
D. Mitigation activities proposed under this Instrument and corresponding Bank Parcel
Development Packages (BPDP) to generate Riparian Buffer Credits shall be consistent
with North Carolina ("State") statutes and rules for the Neuse Nutrient Sensitive Waters
Management Strategy and the Falls Lake Water Supply Nutrient Strategy that are in place
at the time a complete BPDP is submitted to DWR.
IV. ESTABLISHMENT OF BANK PARCEL
A. In accordance with 15A NCAC 02B .0295, DWR has provided a "Site Viability Letter" for
the Bank Parcel proposed under this Instrument. The site viability letter is not an approval
of the site to generate mitigation credits, but is a preliminary review of the Bank Parcel
that details and confirms existing land -use conditions, defines the riparian zone sites
(Enhancement, Preservation or Restoration), and identifies features (streams, ditches,
ponds, etc.) that meet general criteria to be suitable to generate mitigation credits. The Site
Viability Letter for this Bank Parcel was issued by NCDWR on July 31, 2018 and will
expire on July 31, 2020 or upon the submittal of an As -Built Report to DWR.
B. A valid Site Viability Letter is required prior to submittal of the BPDP. Site Viability
Letters will either expire upon the submittal of a BPDP to the DWR or on the dates listed
above, whichever comes first. If a Site Viability Letter expires prior to submittal of a
complete BPDP as described in Section V to DWR, then the Sponsor must submit a formal
request to DWR for a new Site Viability Letter for that Bank Parcel.
C. The Bank Parcel proposed for inclusion under this Instrument shall require a BPDP be
submitted to, and approved by, the DWR prior to use of the individual Bank Parcel for
mitigation purposes or for any sale or transfer of any associated credits. The contents of
the BPDP are provided in Section V.
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D. This Bank Parcel is also part of the Neu -Con Stream and Wetland Umbrella Mitigation
Bank, Bucher Mitigation Plan Army Action lD #SAW- SAW-2016-01988. This mitigation
plan has been submitted to the Interagency Review Team (IRT) for review and approval.
E. The BPDP submitted under this instrument will be placed on public notice and made
available for public commenting for 15 calendar days.
F. Most of the Riparian Buffer Credits on this Bank Parcel will be generated along newly
formed stream channels through an old pond footprint and along restored stream channels
that are proposed for stream mitigation. Stream Mitigation Plans will be submitted under
the Neu -Con Stream and Wetland Umbrella Mitigation Bank referenced in "D" in this
section. Additionally, all activities conducted within riparian buffers and adjacent riparian
areas for purposes of generating Riparian Buffer Credits will be conducted in concurrence
with stream mitigation activities. Riparian Buffer Credit on this Bank Parcel may be
achieved through restoration and preservation of DWR riparian buffers as they are defined
in 15A NCAC 02B .0233, and other riparian areas allowed per 15A NCAC 02B .0295 (n)
and (o) on the Bank Parcel. Riparian Buffer Credits are only attainable if the width of the
restoration site and preservation site is at least 20 feet from top of bank.
G. The Bank Parcel is intended to provide Neuse Riparian Buffer mitigation as follows:
1. Planting hardwood trees on a Restoration Site as defined in 15A NCAC 02B
.0295(b) adjacent to mitigated streams.
2. Maintaining a Preservation Site as defined in 15A NCAC 02B .0295 (b) by placing
a conservation easement around riparian areas along streams as allowed by 15A
NCAC 02B .0295 (o).
3. Diffused flow will be maintained onsite to the maximum extent practicable.
E. The total area of buffer mitigation on this Bank Parcel is expected to be 31.69 acres.
V. BANK PARCEL DEVELOPMENT PACKAGE
A. The Bank Parcel Development Package (BPDP) submitted under this Instrument shall be
submitted to DWR for review and must be approved by DWR prior to any construction on
the Bank Parcel. The BPDP must describe any changes that have occurred to the site
between the date of the Site Viability Letter and the date the BPDP is submitted to DWR.
The BPDP shall include detailed information consistent with the sections below
concerning; 1) site location (8-digit HUC is required); 2) existing conditions with current
photos; 3) proposed buffer mitigation activities including a detailed vegetation plan; 4)
monitoring and maintenance plans; 5) financial assurances; 6) associated buffer mitigation
calculations, which shall include credit generation, service area, and accounting as
appropriate for each regulatory authority; 7) stream buffer determination letter from DWR,
and 8) Site Viability Letter from DWR; 9) a figure depicting the proposed stream
mitigation areas; and 10) service area figure for each mitigation type
4

B. The Sponsor will obtain all applicable federal, state, and local documentation, permits, or
authorizations needed to construct and maintain the Bank Parcel. This Instrument does not
qualify as, or substitute for, such documentation, permit, or authorization.
C. Any restoration activities or proposed construction within the riparian buffers and other
riparian areas on the Bank Parcel to produce Riparian Buffer Credit must be approved by
DWR in writing prior to implementation. The failure of the Sponsor to comply with this
requirement may result in a revised or reduced credit release schedule for that specific
mitigation site. All restoration activities must be performed in concurrence with any stream
mitigation activities and not before.
D. Requests for deviation from the approved BPDP must be submitted to DWR in writing.
Written approval from the DWR must be received prior to implementing any deviation
from the approved BPDP.
Property Disposition & Long Term Management for the Bank Parcel
E. Prior to the release of any credits, the Sponsor shall record permanent conservation
easements at the Durham County Register of Deed's office that is sufficient to ensure
protection, operation and maintenance of restored riparian buffers and other riparian areas
for the duration specified in the approved BPDP.
F. The form of the conservation easement shall be consistent with the standards employed by
the State of North Carolina in the protection of restored riparian buffers and riparian areas
and shall be approved by the DWR and Army Corps of Engineers (ACOE) prior to the
release of any credits.
G. The Sponsor shall not grant additional easements, right of ways, or any other property
interest in or to the project areas, without prior approval from the DWR and the USACE.
H. The Sponsor agrees to transfer or assign the conservation easement and its interests in
perpetuity to a qualified holder under NC General Statute ("GS") 121-34 et seq. and 170(h)
of the Internal Revenue Code prior to the submittal of the Year 4 Monitoring Report. The
holder shall be a land trust or stewardship program that will hold and enforce the
conservation easement and the interests in perpetuity. The Sponsor shall choose a land trust
or stewardship program that is accredited by the Land Trust Accreditation Commission
and/or has been approved by DWR prior to the end of the fourth year monitoring period.
A land trust must be certified under 501(c)(3) of the Internal Revenue Code.
I. In the event the Sponsor is also the owner of the underlying fee interest in the property, the
conveyance of the conservation easement to a land trust or stewardship fund must be
arranged at the outset of the approved BPDP.
Financial Assurances for the Bank Parcel
J. Following approval of the BPDP for the Bank Parcel, the Sponsor shall provide
Perform ance/Maintenance Bonds from a surety company that is rated no less than an "A-"
5

as rated by A.M. Best, to construct the site according to the approved BPDPs. It is the
Sponsor's responsibility to confirm that the surety company is rated no less than an "A-"
with each annual bond renewal.
K. The amount of each Performance Bond shall be 100% of the estimated cost for
implementation of the mitigation activities of the Bank Parcel as described in the approved
BPDP. No bond shall be less than $150,000.00 to cover construction costs.
L. Alternatively, in lieu of posting Performance Bonds, the Sponsor may elect to construct
the projects prior to the first credit release.
M. For the Bank Parcel, once DWR has released all credits for completion of all the items
listed below, then the Bank Sponsor will be released from its performance obligations
under the performance bond required in Item J and K of this section:
1. Instrument and BPDP Approved by DWR, Conservation Easement Recorded,
Financial Assurance Posted;
2. Mitigation Site Earthwork and Planting and Installation of Monitoring Devices
Completed;
3. As -Built Report as described in Section VI has been received by DWR; and
4. DWR has submitted a written approval of the As -Built Report
N. To comply with this section, DWR must be the Obligee on all performance bonds.
VI. POST CONSTRUCTION DOCUMENTATION FOR THE BANK PARCEL
As -Built Report
A. The Sponsor agrees to perform all necessary work, in accordance with the provisions of
this Instrument and corresponding BPDP, to establish, maintain, and monitor Neuse
Riparian Buffers or other riparian areas until Item B (1) and (2) of Section X have been
satisfied.
B. When all stream mitigation activities have commenced, the Sponsor will submit an as -built
plan and report for the Bank Parcel within 30 calendar days after completing the
establishment of the riparian buffer mitigation areas. The as -built report will describe any
deviation from the approved BPDP and will document the following:
1. Buffer restoration and planting details, invasive species control, confirmation of
fence installation (if applicable), monitoring device locations, vegetation plot
locations, photo point locations, surface and groundwater elevations, as
appropriate.
2. Provide confirmation that the construction of all stream mitigation activities have
been completed.
0

3. Boundary Survey of the conservation easement area, signed and sealed by a
licensed surveyor, including an inventory of the final mitigation areas for riparian
buffer mitigation credits in both square feet and acres.
4. As -built map of the mitigation area showing where riparian restoration and
preservation was performed and any deviations to the Bank Parcel from what was
approved in the BPDP.
5. As -Built map of the stream mitigation areas.
6. Aerial map of the mitigation area that was included in the approved BPDP.
Financial Assurance for Bank Parcel
C. After completion of the restoration/construction on the Bank Parcel, a
Performance/Maintenance Bond will be secured for 100% of the estimated cost to
implement the monitoring and maintenance plan as described in the approved BPDP and
As -Built Report applicable for the site. The Bond must be from a surety company that is
rated no less than an "A-" as rated by A.M. Best, and it is the Sponsor's responsibility to
confirm that the surety company is rated no less than an "A-" with annual bond renewal.
D. A Performance/Maintenance Bond shall be secured each year for a minimum of five years,
and until DWR has released all mitigation credits to the Bank Sponsor. Upon receiving a
written notification from DWR approving a monitoring report with no contingencies, the
bond may be lowered by a maximum of 20% for that next year's monitoring based on the
adjusted cost to complete the monitoring. No bond shall be less than $100,000 initially, to
cover monitoring and maintenance costs.
E. Once DWR has released 100% of all credits for completion of all Bank Parcel milestones
described in Table 2 of Section VIII and in the corresponding BPDP, the Bank Sponsor
will be released from its performance obligations under the performance bond required in
"C-D" of this Section.
F. To comply with this section, DWR must be the Obligee on all performance bonds.
Monitoring and Maintenance Reports
G. The Sponsor shall monitor the Bank Parcel as described in the BPDP until such time as
DWR determines that the performance standards described below have been met. The
monitoring period shall be a minimum of five consecutive years.
H. Performance Standards for Vegetation: Native hardwood trees or native hardwood tree
and shrub species should be planted at a density sufficient to provide 260 stems per acre
after five years. A minimum of four (4) native hardwood trees or four (4) native hardwood
tree and shrub species must be planted. No one species shall be greater than 50% of the
planted stems. A list of species for planting will be detailed in the BPDP for approval.

Native hardwood tree volunteer species may be included to meet performance standards as
determined by the DWR.
A "stem" means a woody seedling, sapling, shrub or tree, no less than 10 centimeters in
height.
J. If the performance standards of the vegetation are not met, supplemental plantings may be
required. Supplemental plantings will be utilized until the required densities have been
achieved and maintained for five years. Bank Parcel maintenance, such as ensuring diffuse
flow, managing invasive species, and pest control will be included in the BPDP.
K. Monitoring Reports for Riparian Buffer Credit: Reporting criteria of the vegetation
shall be based on the Carolina Vegetation Survey (CVS) — EEP Protocol for Recording
Vegetation Level 2 Plot Sampling only version 4.0 or any updated versions of this protocol
in place on the date of acceptance of the BPDP. The Sponsor shall submit to the DWR an
annual monitoring report no later than December 31 of each year for a minimum of five
consecutive years after the first full growing season. This report will describe the
conditions of the Bank Parcel, including an evaluation of the performance standards of the
vegetation contained within the approved BPDP. Reports shall contain the following:
1. A U.S. Geological Survey map showing location of the Bank Parcel;
2. A detailed narrative with supporting photos summarizing the condition of the Bank
Parcel along with any maintenance or remediation performed that year; and
A map, survey, or other figure showing locations of sampling plots, permanent
photo points, location of transects, etc.; and
4. Monitoring data, including specific vegetative counts showing that the trees or tree
and shrub species planted are meeting performance standards and updated
photographs; and
5. A copy of the most recent Bank credit/debit ledgers; and
6. Corresponding verification letters from designated local governments upon request;
and
7. Corresponding Mitigation Transfer Certificates upon request.
8. Proof of performance bond renewal to cover the next monitoring year (if
applicable)
Continency Plans/Remedial Actions
L. In the event the Bank Parcel fails to achieve the performance criteria described in this
Instrument and the approved BPDP, the Bank Sponsor shall develop necessary contingency

plans in coordination with the DWR and implement appropriate remedial actions for the
Bank Parcel and the Bank. Depending on the degree of remedial actions required, the DWR
may modify the monitoring period.
VII. CALCULATION OF MITIGATION CREDITS FOR THE BANK PARCEL
Riparian Buffer Credits
A. All Riparian Buffer Credits shall be determined based on the ratios and percentages
provided in 15A NCAC 02B .0295 (m) and (n).
B. Riparian buffer restoration on the Bank Parcel, as described in 15A NCAC 02B .0295 (n),
and defined in 15A NCAC 02B .0295 (b) may be used for Riparian Buffer Credit.
C. Riparian buffer preservation on the Bank Parcel, as described in 15A NCAC 02B .0295 (o)
and defined in 15A NCAC 02B .0295 (b), can be used for Riparian Buffer Credit.
D. Riparian Buffer Credit is defined as one (1) buffer credit per one square foot or 43,560
buffer credits per one acre.
This space left blank intentionally, do not add text to this space.
6

VIII. CREDIT RELEASE SCHEDULE
A. Upon submittal of all appropriate documentation by the Sponsor, and subsequent approval
by DWR, it is agreed that the mitigation credits associated with the Bank Parcel will
become available for sale to a third party in accordance with the Credit Release Schedule
below in Table 2.0 below:
Table 2.0 - Credit Release Schedule for Riparian Buffer Credits
% Credit
Available for
Task
Project Milestone
Sale
Instrument and BPDP Approved by DWR, Draft Stream Mitigation Plan
Approved by the IRT, Conservation Easement Recorded*, Financial Assurance
Posted, and Item B (1) of Section X in this Instrument has been completed and
12.5***
1
approved by DWR.
All Stream and Buffer Mitigation Site Earthwork Completed, Planting and
10***
2
Installation of Monitoring Devices Completed and All Applicable
3
Monitoring Financial Assurance Posted and Approval of As -Built Report
32.5
Monitoring Report #1: Approved by the DWR** & financial assurance
4
renewed
10
Monitoring Report #2: Approved by the DWR** & financial assurance
5
renewed
10
Monitoring Report #3: Approved by the DWR** & financial assurance
6
renewed
10
Monitoring Report #4: Approved by the DWR** & financial assurance
7
renewed
5
Monitoring Report #5: Approved by the DWR** and final site visit by DWR
8
has been conducted
10
Total
100 %
* For specification, please see Section V in this Instrument
** DWR Approval provided upon a determination that the site is meeting performance standards contained
within the approved BPDP
* * * Will only receive 2:1 rate of Buffer Preservation and Restoration Credits until the completion of Task 3
due to the work occurring within the pond footprint. At the completion of Task 3, the remaining credits for
Buffer Preservation and Restoration will be released.
B. DWR may modify credit release schedules based on the information submitted or the order
in which required information is received. DWR will notify the Sponsor of any
modification to the credit release schedule.
C. DWR may consider a Credit Release Schedule for the Bank Parcel based on the extent of
change between current onsite conditions and proposed post construction conditions.
D. The Sponsor must initiate implementation of the approved BPDP for the site under this
Instrument in concurrence with all stream and/or wetland mitigation activities proposed in
the approved Mitigation Plan referenced in Item D of Section IV of this Instrument.
10

IX. PROCEDURE FOR DEBITING AND CREDITING MITIGATION CREDITS
Credit Ledgers
A. The Bank Sponsor shall maintain one credit ledger for the Bank Parcel under this
Instrument: The credit ledgers shall provide the accounting for buffer mitigation credits in
square feet and acres.
B. The credit ledger shall be submitted on a separate 8 '/zin X 11 in spreadsheet with legible
font style and font size. The ledger shall be submitted using the template provided in
Attachment C of this Instrument or any updated versions to these templates as provided by
DWR.
Credit Processing
C. Riparian Buffer Credits generated on the Bank Parcel will be used to provide mitigation
for authorized buffer impacts within the Neuse River Basin according to 15A NCAC 02B
.0295 (g).
D. The Bank Sponsor shall obtain verification of buffer mitigation required from the delegated
local government in the Neuse River Basin, including the Falls Lake Watershed or DWR
prior to debiting Riparian Buffer Credits from the individual Bank Parcel.
E. All credit and debit transactions for the Bank Parcel under this Instrument shall be
accurately depicted in the credit ledgers. The Bank Sponsor shall provide DWR up-to-date
credit ledgers for the Bank Parcel by the tenth (IOh)of each month. At a minimum and
upon request DWR shall receive a hard copy of updated credit ledgers along with the
corresponding Mitigation Credit Transfer Certificates ("Certificate") and all corresponding
letters from the designated local governments or DWR where applicable, once a year.
Notification of all credit sales shall be provided to DWR until all credits that have been
released have been sold.
Mitigation Credit Transfer Certificates
F. All credit sales will include a Mitigation Credit Transfer Certificate ("Certificate") that is
required to be provided to the buyer of Riparian Buffer credits, that will include, at a
minimum, the following information:
1. Bank Details: (1) sponsor name, (2) bank parcel name as it appears in this
Instrument, (3) DWR project number for the BPDP as it appears in Table 1.0.
2. Credit Details: (1) date of receipt, (2) identify if full or partial payment, and (3 —
when applicable) amount of Riparian Buffer Credits purchased in square feet and
the confirmation from DWR or the local government of the amount required.
11

3. Permitted Project Details: (1) project name as it appears on DWR or local
government permits and/or certifications, (2) 8-digit HUC, (3) river basin, (4)
nutrient strategy applicable to the project with the impacts, (5 — when applicable)
designated local government requiring Riparian Buffer Credits, and/or (6) DWR
authorization number or delegated local government requiring Riparian Buffer
Credits for this project.
E. If the DWR determines that the Bank is operating at a deficit (e.g. the Sponsor is closing
on sales and/or transferring credit that is not available), or the Bank is selling credits out of
compliance with statutes, rules or this Agreement, the sale/transfer of credits will
immediately cease, and the DWR, in consultation with the Sponsor, will determine what
remedial actions are necessary.
X. BANK PARCEL CLOSURE
A. Bank Parcel Closure shall be identified as the event when the Sponsor is relieved of all of
its responsibilities to the Bank Parcel and there are no Riparian Buffer Credits left to sell.
B. Bank Parcel Closure shall commence only after all of the following events have occurred:
1. Transfer or assign the conservation easement and all of its interests, in perpetuity,
to a land trust or stewardship program as described in Section V of this Instrument.
2. All five years of monitoring completed and all monitoring reports submitted and
approved by DWR.
3. All credits have been released and debited and updated ledgers showing zero credit
balances have been submitted and approved by DWR.
XI. GENERAL PROVISIONS FOR THE BANK PARCEL
A. Upon the presentation of proper credentials, and during normal business hours, the Sponsor
and the landowner shall grant permission to the Director of DWR, or an authorized
representative of the Director of DWR, to enter the property containing the Bank Parcel.
B. Amendments: This Banking Instrument may be amended or modified only with written
approval of all signatory parties, including the USACE if it is applicable to the amendment.
C. Any transfer of the Sponsor's rights or obligations outlined in this Instrument or any other
agreement referenced in this Instrument to a third party must be approved by DWR prior
to the transfer.
D. Force Majeure: After 100% of all of the credits have been released according to the credit
release schedule in Section VIII and confirmation has been received by the DWR that the
Conservation Easement has been successfully assigned in compliance with Item H of
12

Section V, then the Sponsor will not be responsible for Bank failure that is attributed to
natural catastrophes including but not limited to flood, drought, disease, regional pest
infestation, etc. that are beyond the control of the Sponsor.
E. However, if an event occurs before 100% of all of the credits have been released according to
the credit release schedule in Section VIII, then the Sponsor shall take remedial action to
restore the property to its condition prior to the event, in a manner sufficient to provide
adequate mitigation to cover credits that were sold prior to the occurrence of the event.
Such remedial action shall be taken by the Sponsor only to the extent necessary and
appropriate, as determined by DWR and the Sponsor.
DWR must concur in writing that a force majeure event has occurred for this provision to apply.
F. Oversight: Actions taken by DWR may include, but are not limited to, the following:
1. Site visits,
2. Issuance of Site Viability Letters,
3. BPDP review and approval of items listed in Section V of this Instrument,
4. As -Built Report review and approval of items listed in Section VI of this
Instrument,
5. Monitoring Report review and approval of items listed in Section VI of this
Instrument,
6. Credit Ledger review and approval of items listed in Section IX of this Instrument,
7. Certificate review of items listed in Section IX of this Instrument and cross analysis
to credit ledgers and,
8. Information requests, file reviews and audits
Reports, ledgers, files and other information shall be made available to DWR upon request, unless
otherwise specified in this or any other document.
G. Validity of the Banking Instrument: This Instrument will become valid on the date of the
last party's signature.
H. Specific Language of Banking Instrument Shall Be Controlling: To the extent that specific
language in this document changes, modifies, or deletes terms and conditions contained in
those documents that are incorporated into the Instrument by reference, and that are not
legally binding, the specific language within the Instrument shall be controlling.
I. Any disputes over decisions regarding this Instrument, shall be referred to the Director of
DWR for a decision. The Director's decision is subject to review as provided in Articles
3 and 4 of G.S. 150B.
This Agreement shall be binding upon the parties and is entered into knowingly,
intelligently, and voluntarily.
K. Notices: All notices and other communications which may be or are required to be given
or made by any party to the other shall be in writing and shall be deemed to have been
properly given and received on the date delivered in person, through email or deposited in
13

the United States mail, registered or certified, return receipt requested, to the addresses set
out below, or at such other addresses as specified by written notice delivered in accordance
herewith.
If to Bank Sponsor: EBX —Neuse I, LLC
Attention: Brad Breslow
302 Jefferson Street Suite 110
Raleigh, North Carolina 27605
[e-mail]
If to DWR: NC Division of Water Resources — 401 & Buffer Permitting Branch
Attn: Nutrient Offset and Buffer Banking Coordinator
1617 Mail Service Center
Raleigh, NC 27699-1617
L. Applicable Law: This Agreement shall be construed under the laws of the State of North
Carolina.
EBX-Neuse I, LLC
By: � � rf51 (Print)
(Signature)
Title:r-
Date: --� �Z� { /2oz0
NORTH CAROLINA DEPARTMENT OF ENVIRONMENTAL QUALITY -DIVISION OF
WATER RESOURCES I/
0
Title: l// }�;
Date: / 2:
14
(Signature)

Updated
Nutrient Offset Program & Buffer Mitigation Program 9/6/2016
Authorities for MBI
ATTACHMENT A
Authorities pertaining to the RES Bucher Mitigation Banking Instrument
All Basins
General Statutes:
G.S. §143-214.11 Ecosystem Enhancement Program
G.S. §143-214.26 Nutrient Offset Credits
G.S. § 143-214.20-24 Riparian Buffer Protection Program
G.S. § 143-214.7 Stormwater runoff rules and programs
G.S. § 143-215.8B Basinwide Water Quality Management Plans
Session Laws
S.L.2015-246
S.L.2015-149
S.L. 2014-90
S.L. 2014-120
S.L.2013-413
S.L.2013-121
S.L. 2013-265
S.L. 2012-200 (Amendment to G.S. §143-214.23 and G.S. §143-215.1)
S.L. 2011-343 (Amendment to G.S. §143-214.11)
S.L. 2009- 337 (Amendment to G.S. § 143-214.11)
Administrative Rules:
15A NCAC 02B .0202 Definitions
15A NCAC 02B .0223 Nutrient Sensitive Waters
15A NCAC 02B .0237 Best Management Practice Cost -Effectiveness Rate
15A NCAC 02B .0240 Nutrient Offset Payments
15A NCAC 02B .0295 Mitigation Program Requirements for Protection and Maintenance of Riparian Buffers
Neuse River Basin Buffer and Falls Lake Nutrient Strategy
General Statutes and Session Laws
G.S. §143-214.5 Water Supply Watershed Protection
S.L. 2012-187
S.L. 2011-394
S.L. 2009-486
S.L. 1998-221 (Part I)
Administrative Rules:
15A NCAC 02B .0232 Basin Nutrient Reduction Goal
15A NCAC 02B .0233 Protection and Maintenance of Existing Riparian Buffers
15A NCAC 02B .0241 Delegation of Authority for the Protection and Maintenance of Existing Riparian Buffers
15A NCAC 02B . 0275 Purpose and Scope
15A NCAC 02B .0276 Definitions
15A NCAC 02B .0277 Stormwater Management for New Development
15A NCAC 02B . 0278 Stonnwater Management for Existing Development
15A NCAC 02B . 0279 Wastewater Discharge Requirements
15A NCAC 02B .0280 Agriculture
15A NCAC 02B .0281 Stormwater Requirements for State and Federal Entities
15A NCAC 02B .0282 Options for Offsetting Nutrient Loads

ATTACHMENT C
*Credits shown below are only for mitigation credits approved by the UMBI, BPDP, and As -Built,
(Sponsor Name & Instrument Name)
(Parcel Name w/ HUC #) Buffer Restoration and Preservation Credit Ledger
Date Last Updated:
DWR Bank Parcel Project #:
Total Credits Released To Date:
Sale/
Release Date
Purchaser or %Credit
Release
Project w/ HUC #
Credits
Released/Available to
Bank
Credits Debited/Sold
From Bank
Buffer Credit Balance
Gov't
Requiring
Square Feet
Acres
Square Feet
Acres
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