20170833 Ver 2_Signed MBI

ROY 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

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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