Mitigation Purchase Agreement.pdf

MITIGATION PURCHASE AGREEMENT

BY AND BETWEEN

[INSERT BANK SPONSOR’S COMPANY NAME]

AND

THE UNITED STATES ARMY CORPS OF ENGINEERS

THIS AGREEMENT is entered this _________ day of ___________, 2021 by and between [INSERT Company name] (“Sponsor”), whose mailing address is [INSERT] and the United States Army Corps of Engineers, New Orleans District, whose mailing address is 7400 Leake Avenue, New Orleans, Louisiana 70118 (“USACE”).

WHEREAS, Sponsor owns and operates the __________Mitigation Bank (the “Bank”), which is approved by USACE to provide compensatory mitigation for authorized wetland impacts.

WHEREAS, the operation of the Bank and the obligations of the Sponsor are governed by the Mitigation Banking Instrument (“MBI”) [OR INSERT other name of instrument] signed by Sponsor and USACE, whereby the Sponsor has agreed to perform all necessary work to create, enhance, rehabilitate and/or restore wetland functions and to maintain and to monitor wetland habitats in accordance with the specific requirements of the MBI [or INSERT other].

WHEREAS, the Bank is located in _________Parish, as more particularly described in the MBI. The property occupied by the Bank is burdened with a duly-recorded perpetual conservation servitude, which protects its natural values.

WHEREAS, USACE desires to purchase mitigation bank credits in order to satisfy its obligation to compensate for unavoidable impacts to Bottomland Hardwood (BLH) habitats to compensate for unavoidable habitat losses caused by the construction of the Comite River Diversion (Comite) Project, Solicitation W912P821R0004.

THEREFORE, for and in consideration of the premises and the payment set forth herein, Sponsor and USACE agree to the following terms and conditions:

1. Sponsor agrees to satisfy the obligation incurred by USACE as a result of the construction of the above-referenced project to compensate for unavoidable impacts to ______ AAHU’s of [INSERT name of habitat type].

2. Sponsor will satisfy USACE’s compensatory mitigation obligation by mitigating _____ acres of [INSERT name of habitat type, and, if appropriate, include location] in accordance with the requirements, conditions and performance standards set forth in the MBI.

3. USACE agrees to pay Sponsor a non-refundable payment of $_____________ to purchase _______ mitigation credits from the Bank, which sum will be paid by electronic funds transfer.

4. Upon receipt of this sum, Sponsor accepts and assumes all responsibility for the mitigation of ______ acres of [INSERT] habitat in accordance with all requirements of the MBI. Sponsor specifically accepts and assumes the responsibility to achieve mitigation success for this acreage and to monitor and to report mitigation performance in accordance with the requirements of the MBI.

5. This Agreement does not grant USACE any rights to any monies generated by the Bank and it does not grant USACE any ownership interest in the Bank or any ownership interest in the immovable property occupied by the Bank.

6. This Agreement constitutes the entire agreement between Sponsor and USACE and it may not be changed, amended or modified except in writing signed by both parties.

7. This Agreement shall be governed by and construed under the laws of the United States and shall be binding upon and inure to the benefit of the successors and assigns of both parties.

IN WITNESS THEREOF, the parties hereto have caused this Agreement to be duly executed by their duly authorized officers.

AGREED AND ACCEPTED, this ________ day of _________, 2021.

For Sponsor:

[INSERT SPONSOR NAME]

By:

[INSERT REPRESENTATIVE NAME

AND TITLE]

AGREED AND ACCEPTED, this ________ day of _________, 2021.

For USACE:

Stephen Murphy Colonel, U.S. Army District Engineer & Commander