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20170833 Ver 2_Signed MBIROY COOPER Governor MICHAELS.REGAN Secretary S. DANIEL SMITH Director March 11, 2020 TO: Danny Smi Director FROM: Katie Merfitt NORTH CAROLINA Environmental Quality Nutrient Offset & Buffer Banking Coordinator THROUGH: Paul Wojoski� Supervisor - 401 & Buffer Permitting Branch SUBJECT: Division Approval of the Baldwin Swamp Mitigation Banking Instrument for Riparian Buffer Mitigation & Nutrient Offset Credits Pursuant to the Tar -Pamlico River Basin Nutrient Management Strategy for Greene Environmental Services, LLC The attached final Mitigation Banking Instrument (MBI) between Greene Environmental Services, LLC and the Division of Water Resources was placed on public notice and made available for public comments on February 24, 2020. The public comment period ended on March 10, 2020 and no comments were received on the draft MBI. DEQ Legal counsel assisted with and agrees with the final template for which all our MBI documents are drafted from. I have reviewed the attached MBI and it is ready for your approval. Please sign on page 15 and return the document to me for final execution. North Carolina Department of Environmental Quality I Division of Water Resources 512 North Salisbury Street 1 1611 Mail Service Center I Raleigh, North Carolina 27699-1611 "*•�•�^^�� / 919.707.9000 AGREEMENT TO ESTABLISH THE BALDWIN SWAMP MITIGATION BANNING INSTRUMENT IN THE TAR-PAMLICO RIVER BASIN FOR RIPARIAN BUFFER MITIGATION AND NUTRIENT OFFSET CREDITS PURSUANT TO THE TAR- PAMLICO RIVER BASIN NUTRIENT MANAGEMENT STRATEGY TABLE OF CONTENTS I. PREAMBLE.....................................................................................................................2 II. LOCATION AND GEOGRAPHIC SERVICE AREA ................................................... 2 III. AUTHORITIES............................................................................................................... 3 IV. ESTABLISHMENT OF BALDWIN SWAMP BANK PARCEL ................................... 3 V. BANK PARCEL DEVELOPMENT PACKAGE............................................................ 5 VI. POST CONSTRUCTION DOCUMENTATION............................................................ 7 VII. CALCULATION OF MITIGATION CREDITS............................................................. 9 VIII. CREDIT RELEASE SCHEDULE................................................................................. 10 IX. PROCEDURE FOR DEBITING AND CREDITING MITIGATION CREDITS......... I I X. BANK PARCEL CLOSURE......................................................................................... 13 XI. GENERAL PROVISIONS............................................................................................. 13 ATTACHMENTS & REFERENCES A — Division of Water Resources Authorities for MBI B — NCDWR Methodology & Calculations for Nutrient Reduction on the Bank Parcel C — Credit Ledger Templates 1. Nutrient Offset Payment Rule: 2. Riparian Buffer Mitigation Rule: httg://i,gMrts.oah.state.ne.us/neat/title%2015ao/20 °/20envimnmental%20quality/chapter°/20020/20- %20environmental%20manaeement/subehapter%20b/15a%20ncac0/2002b0/20 0295 vdf 3. NC Session Law 2019-86 "Nutrient Offset Credits": knps://ncleg.gov/EnactcdLeiislation/SessionLaw&UTML/2019-2020/SL2019-86 html 4. Buffer Interpretation/Clarification 92008-019 for diffuse flow https://files.ne.gov/nc ft/Water%2OOuality/Surface°/ 2OWater%2OProtection/401BufferO/ 2OClarification0/ 2OMemo s/Diffuse-Flow-for-Buffer-Mitieation-Sites-Buffer-Clarification-Memo-20080819 pdf Page 1114 I. PREAMBLE This Mitigation Banking Instrument ("Instrument") regarding the establishment, use, operation, and maintenance of the Baldwin Swamp Nutrient Offset and Buffer Mitigation Bank Parcel (`Bank Parcel") to provide Tar -Pamlico Riparian Buffer mitigation credits ("Riparian Buffer Credits") and Tar -Pamlico Nutrient Strategy nutrient load reduction credits ("Nutrient Offset Credits") is made and entered into by and among Greene Environmental Services, LLC acting as the Bank Sponsor ("Sponsor"), and the North Carolina Department of Environmental Quality — Division of Water Resources ("DWR"). This Instrument is in accordance with 15A NCAC 02B .0240 and the Consolidated Buffer Mitigation Rule 15A NCAC 02B .0295, which became effective on November 1, 2015, see ref erences. The purpose of the Bank is A. To improve water quality within the Tar -Pamlico River Basin, through the restoration of riparian vegetation adjacent to streams and ditches B. To convert agricultural land uses adjacent to streams and ditches into a dense, hardwood vegetated state with the intent to significantly reduce nutrient loads, enhance flood attenuation and restore wildlife habitat along tributaries to Baldwin Swamp. C. To provide mitigation and sell any resulting Riparian Buffer Credits and/or Nutrient Offset Credits to third parties in the Tar -Pamlico River Basin, for development (both existing and proposed), or to offset NPDES-permitted wastewater nutrient sources requiring such mitigation or nutrient offset II. LOCATION AND GEOGRAPHIC SERVICE AREA A. The Geographic Service Area ("GSA") is the designated area wherein a Bank can reasonably be expected to sell Riparian Buffer Credits and/or Nutrient Offset Credits for impacts due to development activities. B. The GSA for this Instrument is limited to the 8-digit Hydrologic Unit Code ("HUC") 03020103 of the Tar -Pamlico River Basin, unless otherwise authorized by the DWR or delegated local government in accordance with 15A NCAC 02B .0295. C. The project is comprised of one parcel of land in Beaufort County, NC. Land use within the Bank parcel has historically been row crop agriculture and is accessed from US 264 and Sunnyside Rd in Pactolus, NC. The project is located at approximately 35°62'45.96" N and 77029'05.94" W. D. Unnamed tributaries of Baldwin Swamp are the receiving bodies of stormwater runoff from this parcel. Baldwin Swamp is classified by DWR as Nutrient Sensitive Waters (NSW). Page 2114 E. Sale or transfer of Riparian Buffer Credits shall be limited to the 8-digit HUC 03020103 in the Tar -Pamlico River Basin, unless otherwise authorized by the DWR or delegated local government in accordance with 15A NCAC 02B .0295. F. Sale or transfer of Nutrient Offset Credits shall be limited to the 8-digit HUC 03020103 in the Tar -Pamlico River Basin, in accordance with 15A NCAC 02B .0240, unless otherwise authorized by the DWR in accordance with Session Law 2019-86. HI.AUTHORITIES A. The Bank will be used to provide Riparian Buffer Credit and Nutrient Offset Credit in accordance with the requirements in the DWR Authority document referenced herein as "Attachment A" and attached to this Instrument. B. Projects eligible for utilization of the credits are those requiring authorization under the requirements of Attachment A and any new approved North Carolina (State) statutes and rules for the Tar -Pamlico Nutrient Sensitive Waters Management Strategy. C. All activities, including the selling of mitigation credits shall be consistent with approved State statutes and rules for the Tar -Pamlico Nutrient Sensitive Waters Management Strategy. D. Mitigation activities proposed under this Instrument and corresponding Bank Parcel Development Package (BPDP) to generate Riparian Buffer Credits and Nutrient Offset Credits shall be consistent with State statutes and rules for the Tar -Pamlico Nutrient Sensitive Waters Management Strategy that are in place at the time a complete BPDP` is submitted to DWR. IV. ESTABLISHMENT OF BALDWIN SWAMP BANK PARCEL A. In accordance with 15A NCAC 02B .0295 and 15A NCAC 02B .0240, DWR has provided a "Site Viability Letter" for the Bank Parcel proposed under this Instrument. The Site Viability Letter is not an approval of the site to generate mitigation credits, but is a preliminary review of the Bank Parcel that details and confirms existing land use conditions, defines the riparian sites (Enhancement Preservation, or Restoration), and identifies features (streams, ditches, ponds, etc.) that meet general criteria to be suitable to generate mitigation credits. The DWR Site Viability Letter that applies to this Bank Parcel was issued on November 27, 2017 and expires November 27, 2019. B. A valid Site Viability Letter is required prior to submittal of each BPDP. The Site Viability Letter for this Bank Parcel will either expire on November 27, 2019 above or upon submittal of an individual As -Built Report to the DWR, whichever comes fast. 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. Page 3114 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 Bank Parcel for mitigation purposes or sale or transfer of any associated credits. The contents of the BPDP are provided in Section V. D. The BPDP will be placed on public notice and made available for public commenting for 15 calendar days. E. Riparian Buffer Credit may be achieved through restoration of DWR riparian buffers as they are defined in 15A NCAC 02B .0259, and other riparian areas as allowed per 15A NCAC 02B .0295 (n) and (o). Riparian Buffer Credits are only attainable if the width of the restoration site is at least 20 feet from tops of banks along streams and 30 feet from tops of banks along ditches. Riparian Buffer Credit along ditches can only be attainable within the first 50 feet from tops of banks. F. The Bank Parcel is intended to provide Tar -Pamlico Riparian Buffer mitigation for Riparian Buffer Credits as follows: 1. Planting hardwood trees on a Restoration Site, as defined in 15A NCAC 02B .0295 (b) adjacent to two perennial streams. 2. Planting hardwood trees on a Restoration Site, as defined in 15A NCAC 02B .0295 (b) adjacent to ditches. 3. Diffused flow will be maintained onsite. The Buffer Interpretation /Clarification Memo #2008-019 applies where maintenance of diffuse flow onsite is unattainable. G. Nutrient Offset Credit on this Bank Parcel may be achieved through restoration of the riparian areas adjacent to streams and viable agricultural ditches where agriculture is the predominant land use. Ditches onsite drain to intermittent streams which then drain offsite to Baldwin Swamp. The width of the restoration area begins at the most landward limit of the top of bank or the rooted herbaceous vegetation and extends landward a minimum of 50 feet and a maximum of 200 feet on all sides of the surface waters. H. The Bank Parcel is expected to provide Nutrient Offsets as follows: 1. Converting agricultural land uses within riparian areas to non-agricultural land uses by placing a conservation easement around riparian areas along streams and ditches. 2. Planting hardwood trees on a Restoration Site, as defined in 15A NCAC 213 .0295 (b) adjacent to ditches and intermittent streams where agriculture has been determined by DWR to be the predominant land use. I. The total area of riparian buffer restoration and nutrient offset restoration on the Bank Parcel is expected to be approximately 20.0 acres. Page 4114 V. BANK PARCEL DEVELOPMENT PACKAGE A. The Baldwin Swamp 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 and nutrient offset activities including a detailed vegetation plan; 4) monitoring and maintenance plans; 5) financial assurances; 6) associated buffer mitigation/nutrient credit calculations, which shall include credit generation, service area, and accounting as appropriate for each regulatory authority; 7) stream buffer determination letter from DWR; 8) Site Viability Letter from DWR; 9) service area figure for each mitigation type proposed under this Instrument. 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 construction within the stream, riparian buffers and other riparian areas on the Bank Parcel to produce Riparian Buffer Credit or Nutrient Offset Credit must be approved by DWR in writing prior to implementation. The failure of theSponsorto comply with this requirement may result in a revised or reduced credit release schedule. 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 E. Prior to the release of any credits, the Sponsor shall record a permanent conservation easement at the Beaufort 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 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. Page51l4 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 that 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 J. Following approval of the BPDP, the Sponsor shall provide a Performance/Maintenance Bond from a surety company that is rated no less than an "A-" as rated by A.M. Best to construct the site according to the approved BPDP. It is the Sponsor's responsibility to confine that the surety company is rated at least "A-" with each annual bond renewal. K. The Performance Bond amount 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 the Performance Bond, the Sponsor may elect to construct the project prior to the first credit release. M. Once DWR has released all credits for completion of all the items listed below, then the Bank Sponsor will be released from its performance obligations under the performance bond required in Item J and K of this section: 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. Page 6114 VI. POST CONSTRUCTION DOCUMENTATION A. The Sponsor agrees to perform all necessary work, in accordance with the provisions of this Instrument, to establish, maintain, and monitor Tar -Pamlico Riparian Buffers or other riparian areas until Item B (1) and (2) of Section X have been satisfied. B. The Sponsor will submit an as -built plan and report for the Bank Parcel within 30 calendar days after completing the riparian buffer mitigation and nutrient offset areas. The as- built report will describe any deviation from the approved BPDP and will document all the following: 1.Buffer restoration: planting details and other construction activities that are described in the BPDP, invasive species control, monitoring device locations, vegetation plot locations, photo point locations, surface and groundwater elevations, as appropriate. 2.13oundary Survey of the conservation easement area, signed and sealed by a licensed surveyor, including an enumeration of the final areas for riparian buffer mitigation and nutrient offset (in both square feet and acres). 3.An as -built aerial map of the mitigation area showing where restoration was performed and any deviations to the Bank Parcel from what was approved in the BPDP. 4.Aeria1 map of the mitigation area that was included in the approved BPDP. Financial Assurance C. After completion of the restoration/construction, a separate Performance/Maintenance Bond will be secured for 100% of the estimated cost to implement the monitoring and maintenance plan as described in the approved BPDP. 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 still rated no less than an "A-" with each 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 DWR approval, the bond may be lowered each year based on the adjusted cost to complete the monitoring. No bond shall be less than $100,000 to cover monitoring and maintenance costs. E. Once DWR has released all credits for completion of Tasks 1-9 in accordance with the credit release schedule in Section VIII, the Bank Sponsor can 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. Page 7114 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 at the end of five years. A minimum of four (4) native hardwood trees or four (4) native hardwood tree and shrub species must be planted. No one species shall be greater than 50% of the planted stems. A list of species for planting will be detailed in the BPDP for approval. Native hardwood tree volunteer species may be included to meet performance standards as determined by the DWR. I. A "stem" means a woody seedling, sapling, shrub or tree, no less than 10 centimeters in height. J. If the performance standards of the vegetation are not met, supplemental plantings may he required. Supplemental plantings will be utilized until the required densities have been achieved and maintained for five years. Bank Parcel maintenance, such as ensuring diffuse flow, managing invasive species, and pest control will be included in the BPDP. K. Monitoring Reports for Riparian Buffer Credit or Nutrient Offset Credit: Reporting criteria of the vegetation within riparian restoration areas shall be based on the Carolina Vegetation Survey (CVS) — EEP Protocol for Recording Vegetation Level 2 Plot Sampling Only Version 4.0 or any updated versions of this protocol in place at the date of acceptance of the BPDP. The Sponsor shall submit 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 each 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; and 2. A detailed narrative summarizing the condition of the Bank Parcel along with any maintenance or remediation performed that year; and 3. A map, survey, or other figure showing locations of sampling plots, permanent photo points, location of transects, etc.; and 4. Monitoring data, including specific vegetative counts showing that the trees or tree and shrub species planted are meeting performance standards and updated photographs; and 5. A copy of the most recent Bank credit/debit ledgers; and Page 8114 6. Corresponding verification letters from designated local governments upon request; and 7. Corresponding Mitigation Transfer Certificates upon request; and 8. Proof of performance bond renewal to cover the next monitoring year (if applicable). L. In the event the Bank Parcel fails to achieve the performance criteria described in this Instrument and in 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 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 (o), defined in 15A NCAC 02B .0295 (b) that is performed on agricultural lands within the Bank Parcel, may be used for either Riparian Buffer Credit or Nutrient Offset Credit, but not both. C. Riparian Buffer Credit is defined as one (1) buffer credit per one square foot or 43,560 buffer credits per one acre. D. All Nutrient Offset Credits will be determined by including the applicable ratio as provided in 15A NCAC 02B .0295 (m) for a Restoration Site. All riparian areas proposed for Nutrient Offset Credit must be a minimum of 50 feet from the top of stream and ditch banks. E. Nutrient Abatement of Restored Riparian Area/Buffers on agricultural land: The Sponsor and DWR agree: 1. The pounds of nitrogen offset per acre of restored riparian areas/buffers shall be 2,273.02 pounds per acre. 2. The pounds of phosphorus offset per acre of restored riparian buffers shall be 146.40 pounds per acre. Page 9114 F. The Sponsor and DWR agree that the methodology and calculations for determining nitrogen and total phosphorous reduction, associated with restoration of riparian areas as described in Section IV of this Instrument, shall be fixed as part of the approval of this Instrument, with the fixed amount not changing during the Bank Parcel Development or credit release schedule for the Bank Parcel. The approved method and calculations for determining nutrient reductions associated with the riparian restoration on the Baldwin Swamp Bank Parcel is further detailed in Attachment B VIII. CREDIT RELEASE SCHEDULE A. Upon submittal of all appropriate documentation by the Sponsor, and subsequent approval by DWR, it is agreed that the Riparian Buffer Credits and Nutrient Offset Credits associated with the Bank Parcel will become available for sale to a third party in accordance with the Credit Release Schedule below: Table I - Credit Release Schedule for Riparian Buffer and Nutrient Offset Credits Task Project Milestone % Credit Available for Sale I Instrument and BPDP Approved by DWR, Conservation Easement Recorded* and Financial Assurance Posted 20 2 Mitigation Site Earthwork, Planting and Installation of Monitoring Devices Com idw 20 3 Monitoring Financial Assurance Posted and Approval of As -Built Report 10 4 Monitoring Report #1: Approved by the DWR** & financial assurance renewed 10 5 Monitoring Report #2: Approved by the DWR** & financial assurance renewed 10 6 Monitoring Report #3: Approved by the DWR** & financial assurance renewed 10 7 Item B (1) of Section X in this Instrument has been completed and approved by DWR. 5 No remaining eredib wilt be rekased and! Task 7 kas been sadsjw 8 Monitoring Report #4: Approved by the DWR** & financial assurance renewed 5 9 Monitoring Report #5: Approved by the DWR** and final site visit by DWR has been conducted 10 Total 100% • For specification, please see Section V in this Instrument '• DWR Approval provided upon a determination that the site is meeting performance criteria contained within the approved BPDP B. DWR may modify the credit release schedule based on the information submitted or the order in which required information is received. DWR will notify the Sponsor of any modification to the credit release schedule. Page 10114 IX. PROCEDURE FOR DEBITING AND CREDITING MITIGATION CREDITS A. The Bank Sponsor shall maintain one credit ledger for each mitigation type for the bank Parcel under this Instrument, unless otherwise instructed by DWR (Riparian Buffer Restoration Credits, Nitrogen Nutrient Offset Credits and Phosphorus Nutrient Offset Credits) in pounds and acres. B. Each credit ledger shall be submitted on a separate 8'/sin X 11in spreadsheet with legible font style and font size. All ledgers shall be submitted using the templates provided in Attachment C of this Instrument or any updated versions to these templates as provided by DWR. C. Riparian Buffer Credits generated on this Bank Parcel will be used to mitigated for authorized riparian buffer impacts within the 03020103 HUC of the Tar -Pamlico River Basin in accordance with 15A NCAC 02B .0295 (f) and (g). D. Nutrient Offset Credits generated on this Bank Parcel can only be provided to offset nutrient loadings within the 03020103 HUC of the Tar -Pamlico River basin in accordance with 15A NCAC 02B .0240. E. Available Nutrient Offset Credits (credits that have been released by DWR but not sold by the Sponsor) that are generated within 0-100' from top of banks and meet criteria for riparian buffer credits as outlined in Section VII of this Instrument, the Site Viability Letter, 15A NCAC 02B .0295 and the corresponding BPDP can be converted from Nutrient Offset Credits to Riparian Buffer Credits upon written approval from DWR. Once a credit has been converted to another credit type, the transaction is permanent and the credit cannot be converted again. F. Available Riparian Buffer Credits (credits that have been released by DWR but not sold by the Sponsor) that meet criteria for nutrient offset credits as outlined in Section VII of this Instrument, the Site Viability Letter and the corresponding BPDP can be converted and transferred from Riparian Buffer Credits to Nutrient Offset Credits upon written approval from DWR. Once a credit has been converted to another credit type, the transaction is permanent and the credit cannot be converted again G. All ratios and percentages of full credit will be applied to Riparian Buffer Credits in accordance with 15A NCAC 02B .0295 (m) and (n) and ratios will be applied to Nutrient Offset Credits according to 15A NCAC 02B .0295 (m). Page 11114 H. The Bank Sponsor shall obtain verification of nutrient offset need from a designated local government in the 03020103 of the Tar -Pamlico River Basin or from DWR through an approved NPDES permit for wastewater nutrient sources prior to debiting Nutrient Offset Credits from the Bank Parcel. L The Bank Sponsor shall obtain verification of buffer mitigation required from the delegated local government in the 03020103 of the Tar -Pamlico River Basin or DWR prior to debiting Riparian Buffer Credits from the Bank Parcel. All credit and debit transactions for each Bank Parcel under this Instrument shall be accurately depicted in the credit ledgers. The Sponsor shall submit accurate and up-to-date credit ledgers for each Bank Parcel by the tenth (101h) of each month. At a minimum and only upon request, DWR shall receive a hard copy of updated credit ledgers along with corresponding Mitigation Credit Transfer Certificates 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. K. All credit sales will include a Mitigation Credit Transfer Certificate ("Certificate') that is required to be provided to the buyer of Riparian Buffer and/or Nutrient Offset credits that will include, at a minimum, the following information: 1. Bank Details: (1) sponsor name, (2) Bank Parcel name as it appears in this Instrument, (3) DWR project number for the BPDP. 2. Credit Details: (1) date of receipt, (2) identify if fall or partial payment, (3- when applicable) amount of nitrogen credits purchased in pounds and confirmation from the designated local government of the amount required, (4- when applicable) amount of phosphorous credits purchased in pounds and confirmation from the designated local government of the amount required, and (5- when applicable) amount of Riparian Buffer Credits purchased in square feet and the confirmation from DWR or the local government of the amount required. 3. 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 impacts, (5-when applicable) designated local government requiring Nutrient Offset Credits, and/or (6) DWR authorization number or delegated local government requiring Riparian Buffer Credits for this project. Page 12114 L If the DWR determines that the Bank is operating at a deficit (e.g. the Sponsor is closing on sales and/or transferring credits that are 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 or Nutrient Offset Credits left to sell. B. Bank Parcel Closure shall commence only after all the following events have occurred: ].Transfer or assign the conservation easement and all 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 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, an authorized representative of the Director of DWR, to enter the property containing the Bank Parcel(s). B. Amendments: This Banking Instrument may be amended or modified only with written approval of all signatory parries. 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 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 Section V, the Sponsor will not be responsible for Bank failure that is attributed to natural catastrophes including but not limited to flood, drought, disease, regional pest infestation, etc. that are beyond the control of the Sponsor. Page 13114 E. However, if an event occurs before 100% of all the credits have been released according to the credit release schedule in Section VIII, the Sponsor shall take remedial action to restore the property to its condition prior to the event, in a manner sufficient to provide adequate mitigation to cover credits that were sold prior to the occurrence of the event. Such remedial action shall be taken by the Sponsor only to the extent necessary and appropriate, as determined by DWR and the Sponsor. DWR must concur in writing that a force majeure event has occurred for this provision to apply. F. Oversight: Actions taken by DWR may include, but are not limited to, the following: I. 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 listen in Section VI of this Instrument, 6. Credit Ledger review and approval of items listen in Section IX of this Instrument, 7. Certificate review of items listed in Section DC 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 this Instrument: This Instrument will become valid on the date of the last parry's signature. H. Specific Language of this 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. 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. Page 14114 K Notices: All Notices and other communication which may be or are required to be given or made by any parry to the other shall be in writing and shall be deemed to have been properly given and received on the date delivered in person, received via email with a delivery receipt requested, or deposited in the United States mail, registered or certified, return receipt requested, to the addresses set out below or at such other addresses as specified by written notice delivered in accordance herewith. If to Bank Sponsor: Greene Environmental Services, LLC Attn: Jeffrey R. Becker Ham Farms 963 Hwy 258 S, Snow Hill, NC 28580 If to DWR: NC Division of Water Resources 401 & Buffer Permitting Branch Attn: Nutrient Offset Banking Coordinator 1617 Mail Service Center Raleigh, NC 27699-1617 L. Applicable Law: This Agreement shall be construed under the laws of the State of North Carolina. Greene Environmental Services, LLC By: Bobby Hain _ (Print) /C (Signature) Title: Owner Date: // - t ? - a o � �q NORTH CAROLINA DEPARTMENT OF ENVIRONMENTAL QUALITY DIVISION OF WAT RESO C By: i` (Print) ( / (Signature) Title: Date: Page 15115 Updated Nutrient Offset Program & Buffer Mitigation Program SO/28/2019 Authorities for MBI ATTACHMENT A Authorities pertaining to the Baldwin Swamp 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 Buffets Tar -Pamlico River Basin Buffer and Tar -Pamlico Nutrient Strategv Session Laws S.L. 2019-86 (Amendment to G.S. §143-214.26) S.L.2011-394 S.L. 1999-329 (part of G.S. § 143B-282) Administrative Rules: 15A NCAC 2B .0229 Nutrient Offset Payments for Non -Tar -Pamlico Basin Association Members 15A NCAC 2B .0255 Agricultural Nutrient Loading Goals 15A NCAC 21B .0256 Agricultural Nutrient Control Strategy 15A NCAC 2B .0257 Nutrient Management 15A NCAC 2B .0258 Basinwide Stormwater Requirements 15A NCAC 2B .0259 Protection and Maintenance of Existing Riparian Buffers 15A NCAC 2B .0261 Delegation of Authority for the Protection and Maintenance of Existing Riparian Buffers ATTACHMENT B — NCDWR - Methodology & Calculations for Nutrient Reductions on the Bank Parcel m m m N M o T (m(pp�a O r N m M � � N C did v� 7 d W d W M n cNp L r � d � W $ d J e 0 M 0 N � n M C u � r t _cc W Y N C C o d m � G C 21 iwlilw W m m I° C A 0 3 d d d' R C y L J Z C C N W U d J U d O � tdJ O O `pl p pJ O d m 0 c (n m x C d « O > E d J w L n aa0+ y a_ H m E f0 ap c o x d « G � w m W d C T W w x O92 O !F U O O d 9 ~C LL E y o ' x u T om' x° .a=m o12 m o a T T oC dE c U 0UZ d - d 2U Zow x _a o Y' 10�rmmm3a0ac to om C C H O a N d O W d p m C a E w O Ip 6 Ln U a c d$ II �O�pp O d N a 0 'N d E d C d w y 3� 0 m O w O O� w O C y� m J aw a N N o« TN a � N u C w y J « C d a" wW O O E w w O� N C d d x W U w N j p jr C w« of J'V gOI>jL «O�Nam �i Z MC- I- C C 0=¢i $ C C rO J m m 10 d E a v E O C d.m 0 Mm>.c 01nmmdpo ie w E m N y N >i 'S N C« N L U 'C M N R U Cy 0 y CCf 'C O O s C C D w w d p C 3 w L G� w d w o `� C Q ma�rmZJsS19--e22Wz E o � N i7 LL � k ` { ! & ] / ) CIL f Co £ } \ MI i )MI z 0 ix / atIM _ ■ \ £ @ E q { { \ \IL M ; 2 $(( § - Ir �0° ){ (�k k ) ® ! = {6!§/ ;E a, ;«■q! £®§ § �2J0E )* J ; GO }\ \\ } \ _\}\�\ §!tLƒ{ ! |)) $ f o ■ ` !_ /gE am° £ D \�� /\ {f § 7 \.3 ))§2*CD !� ; @k { 0 } \ tata 0 0 .1 0XX {I/ - W`/� {3k-� E .,' % { /\ $ƒ§ �// / / ATTACHMENT C — Ledger Templates `Credits shown below are only for mitigation credits approved by the MBI, BPDP, and As -Built. (Sponsor Name & Instrument Name) (Parcel Name W/ HUC N) Buffer Credit Ledger Date Last Updated: DWR Bank Parcel Project p: Total Credits Released To Date: - Sale/ Credits Purchaser or %Credit Credits Debited/Sold Release Release Project w/ HUC p Released/Available to From Bank Date Bank Square Acres Square Acres Feet Buffer Credit Gov t Balance Requiring Square AcresFeet Feet 'Credits shown below are only for mitigation credits approved by the MBI, BPDP, and As -Built. (Sponsor Name & Instrument Name) (Parcel Name w/ HUC #) Nitrogen Credit Ledger Date Last Updated: DWR Bank Parcel Project M Total Credits Released To Date: Sale/ Credits Purchaser or % Credits Debited/Sold From Gov't Release Credit Release Project w/ HUC>f Released/Available to Bank Nutrient Credit Balance Requiring Date Bank Pounds of fN Poundsof fl Poundsof ft' Nitrogen Nitrogen Nitrogen "Credits shown below are only for mitigation credits approved by the MBI, BPDP, and As -Built. (Sponsor Name & Instrument Name) (Parcel Name w/ HUC p) Phophorus Credit Ledger Date Last Updated: DWR Bank Parcel Project p: Total Credits Released To Date: Sale/ Credits Purchaser or % Credits Debited/Sold From Release Credit Release Project w/ NUC p Released/Available to Bank Date Bank Pounds of ft' Pounds of ft' Phosphorus Phosphorus Gov't Nutrient Credit Balance Requiring Pounds of ft' Phosphorus