HomeMy WebLinkAboutSigned MBIDocuSign Envelope ID: 58C8B5B9-83E9-4CD9-BAAO-El98lD29D7B3
ROY COOPER
Governor
ELIZABETH S. BISER
Secretary
RICHARD E. ROGERS, JR.
Director
NORTH CAROLINA
Environmental Quality
September 29, 2022
TO: Michael Pjetraj
Section Chief — Water Quality Permitting Section
FROM: Katie Merritt kyM
Nutrient Offset & Buffer Banking Coordinator
THROUGH: Paul Wojoski
Supervisor - 401 & Buffer Permitting Branch
SUBJECT: Division Approval of the Wall It Mitigation Banking Instrument in the
Randleman Lake Watershed for Riparian Buffer Mitigation Credits for EcoMAA Holdings,
LLC.
The attached final Mitigation Banking Instrument (MBI) between EcoMAA Holdings, LLC and
the Division of Water Resources was placed on public notice and made available for public
comments on September 12, 2022. The public comment period ended on September 27, 2022
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. DWR staff (Katie Merritt) have reviewed the attached final MBI
and it is ready for your review. If you approve of the MBI, please sign on page 13 and return the
document to Katie Merritt for final execution.
DocuSign Envelope ID: 58C8B5B9-83E9-4CD9-BAAO-E198lD29D7B3
AGREEMENT TO ESTABLISH THE WALL II BUFFER MITIGATION BANKING INSTRUMENT IN THE
RANDLEMAN LAKE WATERSHED WITHIN THE CAPE FEAR RIVER BASIN FOR RIPARIAN BUFFER
MITIGATION CREDITS PURSUANT TO THE RANDLEMAN LAKE WATER SUPPLY NUTRIENT
MANAGEMENT STRATEGY
Table of Contents
I. Preamble...........................................................................................................................................1
II. Location & Geographic Service Area.................................................................................................1
III. Authorities........................................................................................................................................2
IV. Establishment of Bank Parcel............................................................................................................2
V. Pre -Construction Documentation.....................................................................................................3
VI. Post Construction Documentation for Bank Parcel..........................................................................5
VII. Calculation of Mitigation Credits......................................................................................................8
VIII. Credit Release Schedule....................................................................................................................9
IX. Procedure for Debiting & Crediting Mitigation Credits..................................................................10
X. Bank Closure...................................................................................................................................11
XI. General Provisions for the Bank.....................................................................................................11
Attachments:
A: Division of Water Resources Authority Document
B: Bank Parcel Ledger (template)
C: Bank Parcel Credit Table (template)
D: Performance Bond Amounts Memorandum (4/2/2014)
References:
1. Riparian Buffer Mitigation Rule:
http://reports.oa h.state. nc. us/ncac/title%2015a%20-%20envi ronmenta I%20g ua lity/chapter%2002%20-
%20environmental%20management/subchapter%20b/15a%20ncac%2002b%20.0295.pdf
2. Clarified Procedures for Calculating Buffer Mitigation Credits and Nutrient Offset Credits (November
2019):
https://files. nc.gov/ncdeg/Water%20Qual ity/Surface%2OWater%20Protection/401/Mitigation/Issues---
Resolutions-Ver-1.0-buffer-m itigation-nutrient-offset.pdf
DocuSign Envelope ID: 58C8B5B9-83E9-4CD9-BAAO-E1981 D291D7133
I. Preamble
This Mitigation Banking Instrument ("Instrument") regarding the establishment, use, operation, and
maintenance of the Wall II Buffer Mitigation Bank ('Bank Parcel"), identified in Section II, to provide
Randleman Lake Riparian Buffer mitigation credits ("Riparian Buffer Credits") is made and entered into by
and among EcoMAA Holdings I, 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 (see ref. #1).
The purpose of the Bank is:
A. To restore, enhancement and preserve riparian vegetation adjacent to streams and/or
agricultural ditches with the intent to improve water quality within the Randleman Lake
Watershed.
B. To convert agricultural land uses within riparian areas adjacent to streams and/or agricultural
ditches into a dense, hardwood vegetated state with the intent to significantly reduce nutrient
loadings associated with agricultural practices into streams and ditches.
C. To provide mitigation and sell any resulting Riparian Buffer Credits to third parties in the
Randleman Lake Watershed for development (both existing and proposed) requiring such
mitigation.
II. Location & 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 buffer impacts due to development activities.
B. The GSA for the Bank Parcel proposed under this instrument is limited to the Randleman Lake
Watershed of the Cape Fear River Basin.
C. The selling of Riparian Buffer Credits shall be limited to the Randleman Lake watershed, as defined
in accordance with Rule 15A NCAC 02B .0295.
D. The Bank Parcel is comprised of land in Randolph County, NC, lying adjacent to an existing
conservation easement for the NC Division of Mitigation Services Full -Delivery Mitigation Site
(Wall Buffer Mitigation Site, DMS ID# 2012-0949) and is currently used for row crops.
E. The following table (Table 1) provides site -specific details of the Bank Parcel proposed under this
Instrument, that is within the Randleman Lake Watershed.
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DocuSign Envelope ID: 58C8B5B9-83E9-4CD9-BAA0-E1981 D291D7133
Table 1: Bank Parcel Details
Bank
DWR
14 Digit USGS
Named
Project
Primary
Parcel
Project
County
Hydrologic Unit
Receiving
Location
Land Use
Name
#
Code
Stream
Wallll
2018-
35.825348,
Unnamed
Crop
1428
Randolph
03030003010070
Buffer Site
-79 850901
Tributary
Production
/
III. Authorities
A. The Bank Parcel 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 subsequently approved North Carolina statutes and rules
for the Randleman Lake Water Supply Nutrient Management Strategy.
C. The selling of mitigation credits generated from the Bank Parcel approved under this Instrument
shall be consistent with approved North Carolina statutes and rules forthe Randleman Lake Water
Supply Nutrient Management 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
statutes and rules for the Randleman Lake Water Supply Nutrient Management 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 a site to
generate Riparian Buffer Credits and Nutrient Offset Credits, but is a preliminary review of the
Bank Parcel that details and confirms existing land use conditions, defines the riparian sites
(Enhancement, Preservation, or Restoration), and identifies features (streams, ditches, ponds,
etc.) that meet general criteria to be suitable to generate Riparian Buffer Credits and Nutrient
Offset Credits. Table 2 below outlines when the Site Viability Letter was issued by DWR for the
mitigation site proposed under this Instrument:
Table 2: Site Viabilitv Letter Details
Bank Parcel Name
NC DWR Site Visit
Viability Letter
Received
Viability Letter
Expiration Date
Wall II Buffer Site
12/2/2018
2/22/2022
3/29/2024
B. A valid Site Viability Letter is required prior to submittal of each BPDP. The Site Viability Letter will
either expire on the date listed in the table above or upon submittal of the As -Built Report to the
DWR, whichever comes first. If the Site Viability Letter expires prior to submittal of a complete
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DocuSign Envelope ID: 58C8B5B9-83E9-4CD9-BAAO-E1981 D291D7133
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 the Bank Parcel.
C. The Bank Parcel proposed for inclusion under this Instrument shall require a Bank Parcel
Development Package ("BPDP") be submitted to, and approved, by the DWR prior to use of the
Bank Parcel for mitigation purposes or the sale or transfer of any associated credits. The contents
of the BPDP are provided in Section V.
D. The BPDP submitted under this instrument will be placed on public notice and made available
for public commenting for 15 calendar days.
E. In general Riparian Buffer Credit on the Bank Parcel may be achieved through restoration and
preservation of DWR riparian buffers as they are defined in 15A NCAC 02B .0724, and other
riparian areas allowed per 15A NCAC 02B .0295 (n) and (o) where applicable. Riparian Buffer
Credits are only attainable if the width of the riparian areas are at least 20 feet from tops of banks
along streams and ephemeral channels when measuring perpendicular and landward from
features. Riparian Buffer Credits are attainable to a maximum of 200 feet from tops of banks. The
viability of features to generate Riparian Buffer Credits is provided in the Site Viability Letter for
the Bank Parcel and referenced in Table 2.0 of this instrument
The Bank Parcel is intended to provide Randleman Riparian Buffer Credit as follows:
1. Planting hardwood trees and shrubs on a Restoration Site as defined in 15A NCAC 02B .0295
(b) adjacent to streams.
2. Planting hardwood trees and shrubs on a Restoration Site as defined in 15A NCAC 02B 0295
(b) adjacent to ephemeral channels as allowed in 15 A NCAC 02B .0295 (o).
3. Planting hardwood trees and shrubs on an Enhancement Site as defined in 15A NCAC 02B
0295(b).
4. Maintaining a Preservation Site as defined in 15A NCAC 02B .0295 (b) along streams as
allowed in 15A NCAC 02B .0295 (o) by placing a conservation easement around riparian
areas.
V. Pre -Construction Documentation
Bank Parcel Development Package
A. The BPDP submitted under this Instrument shall be submitted to DWR for review and must be
approved by DWR prior to any construction at 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 (14-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) A Project Credit Table (see
Attachment C) showing associated buffer mitigation 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, and 10) all pertinent information including but not limited to permitting,
bank stabilization, culvert removal, installation of any utilities indirectly or directly affecting the
Bank Parcel, endangered or threatened species, presence of historical sites and an Environmental
DocuSign Envelope ID: 58C8B5B9-83E9-4CD9-BAAO-E1981 D291D7133
Data Resources (EDR) report to evaluate environmental risk associated with the land proposed
for the Bank Parcel.
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 and/or enhancement 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 Bank
Parcel.
D. Requests for deviation from the approved BPDP must be submitted to DWR in writing. Written
approval from the DWR must be received prior to implementing any deviation from the approved
BPDP.
Property Disposition & Long -Term Management for Bank Parcel
E. Prior to the release of any credits, the Sponsor shall record a permanent conservation easement
at the Randolph County Register of Deed's office in the county in which the Bank Parcel is located
that is sufficient to ensure protection, operation, and maintenance of restored riparian buffers
and other riparian areas for the duration specified in the approved BPDP.
F. The form of the conservation easement shall be consistent with the standards employed by the
State of North Carolina in the protection of restored riparian buffers and riparian areas and shall
be approved by the DWR prior to the release of any credits.
G. The conservation easement for the Bank Parcel will be located adjacent to the Wall Brother's Full
Delivery Conservation Easement. The Full Delivery's easement includes the riparian areas and
tops of banks of mitigated streams and ephemeral channels and extends at a minimum 50 feet
from the top of bank of the project features. The Bank Parcel's conservation easement will
protect the outermost riparian areas adjacent to the same features beyond the 50 feet and out
to a maximum of 200 feet where possible.
H. The Sponsor shall not grant additional easements, right of ways, or any other property interest in
or to the project area, without prior approval from the DWR.
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.
J. In the event the Sponsor is also the owner of the underlying fee interest in the property the
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DocuSign Envelope ID: 58C8B5B9-83E9-4CD9-BAA0-E1981 D291D7133
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 Bank Parcel Development
K. Following approval of the BPDP for the Bank Parcel, the Sponsor shall provide Performance 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 confirm that the surety
company is rated no less than an "A-" with each annual bond renewal.
L. The Sponsor must provide a cost analyses to DWR as part of the review and acceptance of the
amount of the performance bond, and must include all reasonable potential contingency costs
associated with the establishment of the Bank.
M. If the Bank Parcel does not meet all of the criteria set out in items 1 through 4 below, then the
Sponsor must provide a minimum performance/maintenance bond of $150,000 to cover
construction cost.
1. Bank Parcel is primarily a buffer/nutrient offset riparian restoration project with only a small
area of buffer preservation;
2. The area proposed for mitigation with the Bank Parcel is 10 acres or less, as will be shown in
a survey performed and sealed by a professional surveyor registered in the North Carolina;
3. The area proposed for mitigation within the Bank Parcel does not require fencing as part of
the approval; and
4. The area proposed for mitigation with the Bank Parcel is not part of larger mitigation area
that included stream or wetland mitigation.
N. Alternatively, in lieu of posting a Performance Bond, the Sponsor may elect to construct the
project prior to the first credit release.
O. Once DWR has released all credits for completion of all the items listed below, then the 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
P. To comply with this section, DWR must be the Obligee on all performance bonds.
VI. Post Construction Documentation for Bank Parcel
As -Built Report
A. The Sponsor agrees to perform all necessary work, in accordance with the provisions of this
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DocuSign Envelope ID: 58C8B5B9-83E9-4CD9-BAAO-E1981 D291D7133
Instrument and corresponding BPDP, to establish, maintain, and monitor Randleman Lake
Riparian Buffers or other riparian areas until items B(1) and B(2) of Section X have been satisfied.
B. Within 30 calendar days after completing the establishment of the buffer mitigation areas, the
Sponsor will submit written notification to DWR documenting that all buffer mitigation activities
have been completed. Failure to submit written notification within 30 days may result in a
modified credit release schedule or a delay in the issuance of credit releases. Notification shall
include all the following:
1. Short summary of activities completed as required per the approved BPDP;
2. Figures representing all riparian restoration, riparian enhancement and riparian
preservation activities where applicable;
3. Figures representing location of all monitoring plots installed;
4. Detailed planting plan- including type of species planted, density of species planted, and any
modifications to the planting plan from what was approved in the BPDP;
5. Description of how the conservation easement boundaries were marked; and
6. Any major changes to the conservation easement boundary or to the amount of Riparian
Buffer Credits from what was proposed in the approved BPDP.
C. The Sponsor will submit an as -built plan and report for the Bank Parcel after completing the
riparian buffer mitigation activities. The As -Built report will describe any deviation from the
approved BPDP and will document the following:
1. Riparian restoration, preservation and enhancement planting details and other construction
activities that were noted in the BPDP, confirmation of fence installation (if required),
invasive species control, monitoring device locations, vegetation plot locations, and photo
point locations.
2. 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 Credits in
both square feet and acres.
3. As -built map of the mitigation area showing where riparian restoration, enhancement and
preservation were performed and any deviations to the Bank Parcel from what was
approved in the BPDP.
4. Aerial map of the mitigation that was included in the approved BPDP.
Financial Assurances for Monitoring and Maintenance
D. After completion of the restoration/construction at the Bank Parcel, a separate Performance/
Maintenance Bond will be secured for 100% of the estimated cost to implement the monitoring
and maintenance plan as described in the approved BPDP and As -Built Report. 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 the surety company is still rated no less than an "A-" with each
annual bond renewals. Upon DWR approval, the bond may be lowered each year based on the
adjusted cost to complete the monitoring.
E. The Sponsor must provide a cost analysis to DWR for monitoring and maintenance, as part of the
review and acceptance of the amount of the performance bonds, and must include all reasonable
potential contingency costs associated with the establishment of the Bank Parcel.
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DocuSign Envelope ID: 58C8B5B9-83E9-4CD9-BAA0-E1981 D291D7133
F. If the Bank Parcel does not meet all of the criteria set out in items 1 through 4 below, then the
Banks Sponsor must provide a minimum performance/maintenance bond of $100,000 to cover
construction cost.
1. Bank Parcel is primarily a buffer/nutrient offset riparian restoration project with only a small
area of buffer preservation;
2. The area proposed for mitigation with the Bank Parcel is 10 acres or less, as will be shown in
a survey performed and sealed by a professional surveyor registered in the North Carolina;
3. The area proposed for mitigation within the Bank Parcel does not require fencing as part of
the approval; and
4. The area proposed for mitigation with the Bank Parcel is not part of larger mitigation area
that included stream or wetland mitigation.
G. Once DWR has released 100% of all credits for completion of all Bank Parcel milestones described
in Table 5 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 and D in this section.
H. To comply with this section, DWR must be the Obligee on all performance bonds.
Monitoring & Maintenance Reports
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.
Performance Standards for Vegetation: Native hardwood trees or native hardwood tree and shrub
species should be planted at a density sufficient to provide 260 hardwood 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.
K. A "stem" means a woody seedling, sapling, shrub or tree, no less than 10 centimeters in height
and shall apply, on the Bank Parcel, to the minimum height that a planted tree or shrub shall be
at initial planting. Volunteer stems that are less than 10 centimeters shall not be quantified and
included in the annual vegetation data included with the monitoring reports.
L. 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 diffused flow, managing
invasive species, and pest control will be included in the BPDP.
M. 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 at the date of
acceptance of the BPDP. The Sponsor shall submit to the DWR an annual monitoring report no
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DocuSign Envelope ID: 58C8B5B9-83E9-4CD9-BAA0-E1981 D291D7133
later than December 31" of each year for a minimum of five consecutive years after the first full
growing season. This report will describe the conditions of the Bank Parcel, including an
evaluation of the performance standards of the vegetation contained within the approved BPDP.
Reports shall contain the following:
1. A U.S. Geological Survey map showing location of the Bank Parcel;
2. A detailed narrative with supporting photos summarizing the condition of the Bank Parcel
along with any maintenance or remediation performed that year; and
3. A map, survey, or other figures showing locations of sampling plots, permanent photo
points, and location of transects, etc.; and
4. Monitoring data, including specific vegetation counts and height data 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 Parcel credit/debit ledger; and
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 (when applicable).
Contingency Plans/Remedial Actions
N. 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.
Depending on the degree of remedial actions required, the DWR may modify the monitoring
period.
VI 1. Calculation of Mitigation Credits
Riparian Buffer Credits
A. All Riparian Buffer Credits shall be determined based on the ratios and percentages provided in
15A NCAC 028 .0295(m)(n) following the guidance provided in the Clarified Procedures for
Calculating Buffer Mitigation Credits and Nutrient Offset Credits letter issued by DWR (see ref. #2)
including the most recent Project Credit Table template provided online (Appendix C).
B. Riparian buffer restoration on the Bank Parcel, as described in 15A NCAC 028 .0295 (n) and (o)
can be used for Riparian Buffer Credit.
C. Riparian buffer enhancement on the Bank Parcel covered under this Instrument, as described in
15A NCAC 028 .0295 (n) and (o), can only be used for Riparian Buffer Credit.
D. Riparian buffer preservation on the Bank Parcel covered under this Instrument, as described in
15A NCAC 028 .0295 (o) and defined in 15A NCAC 028 .0295 (b) can be used for Riparian Buffer
Credit.
E. Riparian Buffer Credit is defined as one (1) buffer credit per one square foot or 43,560 buffer
credits per one (1) acre.
N
DocuSign Envelope ID: 58C8B5B9-83E9-4CD9-BAAO-E1981D29D7B3
Vill. 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 associated with the Bank Parcel will become
available for sale to a third party in accordance with the Credit Release Schedule in Table 3 below:
Table 3: Credit Release Schedule for Riparian Buffer Credits
Task
Milestone
Credit Release (%)
Instrument & BPDP approved by DWR, Conservation Easement
1
Recorded*, & Financial Assurances Posted
o
20/
All Riparian Earthwork & Mitigation Activities, Planting and Installation of
2
Monitoring Devices completed, easement boundaries adequately
20%
marked, all applicable permits obtained, site visit performed by DWR
3
Monitoring Financial Assurance Posted & Approval of As -Built Report
10%
Monitoring Report #1: Approved by DWR** & Financial Assurance
4
Renewed
10%
Monitoring Report #2: Approved by DWR** & Financial Assurance
5
Renewed
10%
Monitoring Report #3: Approved by DWR** & Financial Assurance
6
Renewed
10%
Item B(1) of Section X in this Instrument has been complete & approved
7
by DWR
5%
No remaining credits will be released until the conservation easement has been assigned to an
approved land trust or stewardship
Monitoring Report #4: Approved by DWR** & Financial Assurance
8
Renewed
5%
Monitoring Report #5: Approved by DWR** & Project Closeout approved
9
by DWR
10%
Total
100%
* For specification, see Section V in this Instrument
** DWR approval provided upon a determination that the site is meeting success criteria contained with
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.
C. Any major deviations to the Bank Parcel that were not authorized in writing by DWR prior to
implementation may affect the amount of riparian buffer credits that will be generated by the
Bank Parcel.
DocuSign Envelope ID: 58C8B5B9-83E9-4CD9-BAA0-E1981 D291D7133
IX. Procedure for Debiting & Crediting Mitigation Credits
Credit Ledger
A. The Bank Sponsor shall maintain one credit ledger providing accounting for Riparian Buffer Credits
in square feet and acres.
B. The credit ledger shall be submitted on a separate 8 % in. x 11 in. spreadsheet with legible font
style and font size. The ledger shall be submitted using the templates provided in Attachment B
of this Instrument or any updated versions to these templates as provided by DWR.
Credit Processing
C. Riparian Buffer Credits must be calculated for the Bank Parcel using the most recent Project Credit
Table template (see attachment C) which is referenced in the guidance provided in the Clarified
Procedures for Calculating buffer Mitigation Credits and Nutrient Offset Credits letter issued by
the DWR, see reference #2.
D. Riparian Buffer Credits generated at the Bank Parcel will be used to provide mitigation for
authorized buffer impacts within the Randleman Lake Watershed in accordance with ISA NCAC
02B .0295 (f) and (g).
E. Riparian Buffer Credits generated on the Bank Parcel are not transferrable into nutrient offset
credits.
F. The Bank Sponsor shall obtain written verification of buffer mitigation required from the
delegated local government in the Randleman Lake Watershed or DWR prior to debiting Riparian
Buffer Credit from the Bank Parcel.
G. All credit and debit transactions for the 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 the 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.
Mitigation Credit Transfer Certificates
H. 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 Parcel Details: (1) Sponsor Name, (2) Bank Parcel name as it appears in this Instrument
and, (3) DWR project number for the BPDP as it appears in Table 1.
2. Credit Details: (1) date of receipt, (2) identify if full or partial payment, and (3) amount of
Riparian Buffer Credits purchased in square feet and the confirmation from DWR or the local
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DocuSign Envelope ID: 58C8B5B9-83E9-4CD9-BAAO-E1981 D29D7133
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) 14-digit HUC, (3) river basin, (4) nutrient strategy
applicable to the project with impacts, and (5) DWR authorization number or delegated local
government requiring Riparian Butter Credits for this project.
I. If the DWR determines the Bank Parcel is operating at a deficit (e.g. the Sponsor is closing on sales
and/or transferring credit that is not available), or the Bank Parcel 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 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 the following events have occurred.
1. 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 ledger showing zero credit balances
has 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.
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 in accordance with the credit
release schedule in the BPDP and confirmation has been received by the DWR that the
Conservation Easement has been successfully assigned in compliance with Item H of Section V,
the Sponsor will not be responsible for Bank Parcel 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 the credits have been released in accordance with
the credit release schedule in Section Vill, the Sponsor shall take remedial action to restore the
11
DocuSign Envelope ID: 58C8B5B9-83E9-4CD9-BAA0-E1981 D291D7133
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 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 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 this Instrument: This Instrument will become valid on the date of the last party'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.
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.
J. This Agreement shall be binding upon the parties and is entered into knowingly, intelligently and
voluntarily.
K. Notices: All Notices and other communication 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, 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.
12
DocuSign Envelope ID: 58C8B5B9-83E9-4CD9-BAA0-E1981 D291D7133
If to Sponsor: EcoMAA Holdings I, LLC
Attn: Travis Hamrick
605 Kirby St.
Raleigh, NC 27606
thamrick@ecomitigation.com
If to DWR: NC Division of Water Resources — 401 & Buffer Permitting Branch
Attn: Nutrient Offset & 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.
EcoMAA Holdings I, LLC
By: Travis Hamrick (Print)
(Sign)
Title: President
Date: 9/9/22
North Carolina Department of Environmental Quality — Division of Water Resources
By: Michael Pjetraj (Print)
DocuSigned by:
M;C" p' (Sign)
32BDAMFE0074C5...
Title: Deputy Director
Date: 9/29/2022
13
DocuSign Envelope ID: 58C8B5B9-83E9-4CD9-BAAO-E1981D29D7B3
Updated
Riparian Buffer Mitigation Program September 29, 2020
Authorities for Randleman Lake Watershed
ATTACHMENT A
Authorities pertaining to the Wall II Mitigation Banking Instrument
All Basins
General Statutes:
G.S. § 143-214.11 Ecosystem Enhancement Program
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. 2016-94
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 .0240 Nutrient Offset Payments
15A NCAC 02B .0295 Mitigation Program Requirements for Protection and Maintenance of Riparian Buffers
Randleman Lake Water Supply Watershed Buffer Nutrient Strategy
Session Laws
S.L. 2011-394
S.L. 1999-329 (part of G.S. 143B-282)
Administrative Rules.
15A NCAC 02B .0610 Managing Activities within Riparian Buffers: Definitions
15A NCAC 02B .0611 Managing Activities within Riparian Buffers: Authorization Certificates
15A NCAC 02B .0612 Managing Activities within Riparian Buffers: Forest Harvesting Requirements
15A NCAC 02B .0724 Protection & Maintenance of Existing Riparian Buffers
DocuSign Envelope ID: 58C8B5B9-83E9-4CD9-BAAO-E1981 D291D7133
Attachment B: Buffer Credit Ledger Template
EcoMAA Holdings I, LLC I Wall II Buffer Mitigation Banking Instrument
Wall II Buffer Bank Parcel I Cape Fear 03030003 1 Buffer Credit Ledger
Date Last Updated:
DWR Bank Parcel Project #: 2018-1428
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
Square
Feet
Acres
Totals
*Credits shown below are only for mitigation credits approved by the UMBI,
BPDP, and As -Built.
DocuSign Envelope ID: 58C8B5B9-83E9-4CD9-BAAO-E198lD29D7B3
Attachment C: Project Credit Table (template)
Table 1. [INSERT PROJECT NAME], [INSERT PROJECT NUMBER], Project Credits
Neuse 03020204
Project Area
N Credit Conversion Ratio (ft2/pound)
P Credit Conversion Ratio (ft2/pound)
19.16394
N/A
Credit Type
Location
Subject? (enter
NO if
ephemeral or
ditch')
Feature Type
Mitigation Activity
Min -Max Buffer
Width (ft)
Feature Name
2
Total Area (ft)
Total (Creditable)
Area of Buffer
2
Mitigation (ft)
Initial Credit
Ratio (x:l)
%Full Credit
Final Credit
Ratio (x:1)
Convertible to
Riparian
Buffer?
Riparian Buffer
Credits
Convertible to
Nutrient Offset?
Delivered
Nutrient Offset:
N (Ibs)
Delivered
Nutrient Offset:
P (Ibs)
Totals (ft2):
Total Buffer (ft2):
Total Nutrient Offset (ft2):
0
0
0.000 0.000 0.000
0
0
0
N/A
Total Ephemeral Area (ft) for Credit:
Total Eligible Ephemeral Area (ft):
Enter Preservation Credits Below
Credit Type Location Subject? Feature Type Mitigation Activity I
Min -Max BufferWidth (ft) Feature Name
Preservation Area Subtotals
TOTAL AREA OF BUFFER MITIGATION (TABM)
Mitigation Totals
Square Feet
Credits
Restoration:
0
0.000
Enhancement:
0
0.000
Preservation:
0
0.000
Total Riparian Buffer:
0
0.000
TOTAL NUTRIENT OFFSET MITIGATION
Mitigation Totals
Square Feet
Credits
Nutrient Offset:
Nitrogen:
0
0.000
Phosphorus:
0.000
1. The Randleman Lake buffer rules allow some ditches to be classified as subject according to 15A NCAC 02B .0250 (5)(a).
0
0
0
0.0%
0
0.0%
Total Area (sf)
Total (Creditable)
Area for Buffer
Mitigation (ft2)
0
0
Ephemeral Reaches as %TABM
Preservation as %TABM
Initial Credit Final Credit Riparian Buffer
% Full Credit
Ratio (x:1) Ratio (x:1) Credits
last updated 08/03/2020
DocuSign Envelope ID: 58C8B5B9-83E9-4CD9-BAA0-E1981D29D7B3 �...1dUm
NCDENR
North Carolina Department of Environment and Natural Resources
Pat McCrory
Governor
April 2, 2014
MEMORANDUM
TO: Approved Nutrient Offset & Riparian Buffer Mitigation Banks in NC
FROM: Katie Merritt M
Nutrient Offset & Buffer Banking Coordinator — Division of Water Resources
THROUGH: Karen Higgins JN
401 and Buffer Permitting Unit — Division of Water Resources
Supervisor
John E, Skvarla, III
Secretary
SUBJECT: Notification of potential changes to performance bond requirements for construction
and monitoring costs of nutrient offset and riparian buffer mitigation banks in NC
On February 19, 2014, Assistant Secretary of the North Carolina (NC) Department of Environment & Natural
Resources, Mitch Gillespie, responded to a concerned citizen's letter requesting staff within the Division of Water
Resources (DWR) re-evaluate the minimum requirements of performance bonds for nutrient offset and riparian
buffer mitigation banks in NC. Currently, the requirements are a minimum of $150,000 and $100,000 for
construction and monitoring costs respectively. Staff within the 401 & Buffer Permitting Unit of the DWR,
conducted a thorough review of information received from mitigation providers and consultants and determined
that performance bonds less than the current minimum bond requirements may be accepted on a case by case
basis. Restrictions to the changes in bonding amounts are as follows:
• Applicable for riparian restoration projects conducted by approved private mitigation banks only;
• Applicable for projects 10 acres or less in size as shown on a survey;
• Applicable for projects that do not include fencing as part of the approval for mitigation;
• Not applicable for projects that include stream and/or wetland mitigation; and
• No bond shall be less than $50,000 and $25,000 for construction and monitoring costs respectively.
In accordance with the statement provided in Mr. Gillespie's response letter, the following applies:
• "Operational procedures that are not in direct compliance with existing Umbrella Mitigation Banking
Instruments (UMBI) will need to be approved prior to implementation ".
Therefore, mitigation bank sponsors who would like to modify the performance bond requirements on
buffer/nutrient offset riparian restoration projects may submit a modification of their existing UMBI for review
and approval by the Director of the Division of Water Resources (DWR), prior to implementation.
Please contact Katie Merritt at 919-807-6371 or katie.merritt@ncdenr.gov for UMBI modification requests or
questions regarding this correspondence.
Division of Water Resources — 401 & Buffer Permitting Unit
1650 Mail Service Center, Raleigh, North Carolina 27699-1650
Location: 512 N. Salisbury St. Raleigh, North Carolina 27604
Phone: 919-807-63001 FAX: 919-807-6494
Internet: www.ncwaterquality.org
An Equal opportunity 1 Affirmative Action Employer — Made in part by recycled paper