Liquid Capital. Cochran s Creek: A Case Study in Stream Mitigation Banking in Georgia
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1 Liquid Capital Cochran s Creek: A Case Study in Stream Mitigation Banking in Georgia
2 Basic Bank Permitting Process Submit Prospectus to IRT. If approved then: Conduct site visit with IRT. If approved then: Develop and submit a Banking Instrument and Restoration Plan to the IRT. If approved then: Record deed restrictions on property. Construct mitigation site. Monitor for 7 years.
3 Monitoring Requirements for Mitigation Sites 7 years of monitoring not all parameters measured yearly Vegetation Hydraulic Stream surveys Photo documentation Baseline conditions (water quality, fish, bugs) Annual reporting Restrictive covenants required
4 Standard Credit Release Schedule Action Percent Release Approval of Banking Instrument 15 Initial In-Stream Modifications 15 Initial Vegetation Restoration/Tree Planting 10 Success Criteria Met Year 1 5 Success Criteria Met Year 2 5 Success Criteria Met Year 3 10 Success Criteria Met Year 4 10 Success Criteria Met Year 5 5 Success Criteria Met Year 6 5 Final Success Criteria Met Year 7 20 TOTAL 100
5 Project Location
6 Bank Summary Bank is located in Dawson County, GA Bank sponsor is Cochrans Creek Partners, LLC Banking instrument approved in April 2008 Restored stream length = 16,000 LF Restored wetland acreage = 12 Acres Stream credits generated ~ 240,000 Current market price ~ $70-$90 per credit
7 Landowner Segments
8 LLC Structure LLC is comprised of four separate landowners. Wildlands negotiated profit sharing of LLC based on estimated pro-rata share of stream credits. Credit totals were estimated per landowner segment based on USACE Savannah District SOP. Process was more about lawyers than about bank height ratios. Business of Banking.
9 Site Overview
10 Riparian Buffer and Bank Erosion
11 Restoration Plan
12 Bank Erosion
13 Service Area
14 Service Areas Based on 8-digit HUC codes. Primary Service Area 8-digit HUC where bank is located. Secondary Service Area 8-digit HUCs adjacent to primary and within the same major river basin. Individual permit applicants must purchase credits within a bank s primary service area. Nationwide permit applicants can purchase credits from a bank s primary or secondary service area.
15 Site Specific Wetland Mitigation
16 Site Specific Wetland Mitigation Restoration 12 acres of ditched and drained wetlands. Wetland mitigation was sold separately for an Individual Permit. Deed recorded as separate parcel from the mitigation bank.
17 Standard Operating Procedures (SOPs) Establish a method for calculating mitigation credits (proposed mitigation) and debits (impacts) Provides predictability and consistency for the development, review and approval of plans.
18 Standard Operating Procedures Calculated using a variety of factors which include: Streams Stream type Priority area Existing condition Duration Dominant impact scaling factor Linear feet of impact Wetlands Dominant effect Duration of effect Existing condition Lost kind Preventability Rarity ranking Impacted area
19 Mitigation Costs Wetlands Purchased From Mitigation Bank Type Of Impact Credits/Acre* Mitigation Cost ** Wetland Fill 9.1 $68,200 Road Crossing 9.1 $68,200 Clearing 7.1 $53,250 *Assumes a riverine pristine wetland ** Assumes $7,500 per wetland credit
20 Mitigation Costs Streams Purchased from Mitigation Bank Type Of Impact Credits/Foot* Mitigation Cost/Foot** Pipe 5.0 $375 Road Crossing 5.0 $375 Clearing 2.0 $150 *Assumes a perennial stream ** Assumes $75 per stream credit
21 Stream Mitigation Credit Comparison Type Of Impact Credits/Foot Mitigation Approach Credits/Foot Pipe 5.0 Road Crossing 5.0 Clearing 2.0 Restoration 15.0 Enhancement 10.0 Preservation 2.0 Average mitigation ratio is approximately 1:3
22 New Mitigation Rule Guidelines If Compensation is Required 1. Mitigation Bank 2. In Lieu-Fees 3. Permittee Responsible Mitigation using a watershed approach 4. Permittee Responsible Mitigation on-site 5. Permittee Responsible Mitigation off-site
23 New Mitigation Rule Requirements 1. Long term maintenance 2. Financial assurances 3. Watershed approach
24 Questions?
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