Reserving and Purchasing Mitigation Bank Credits: A Simple and Stress-Free Guide
The environmental landscape can often be complicated, but when it comes to reserving and purchasing mitigation bank credits, the process should be anything but that. With strategic planning and understanding, you can simplify this process and make it stress-free.
Reservation Process: Step-by-Step
- Sign a Mitigation Credit Agreement: Initially, you’ll need to sign a mitigation credit agreement and provide a 10% deposit of your purchase price.
- Get a Reservation Letter: Next, we will issue a reservation letter to the relevant agency from whom you’ll be obtaining your Environmental Resource Permit and/or 404 Permit. This crucial step will help expedite your permit, ensuring it gets issued promptly.
- Assurance for 90 Days: The reservation letter from the Mitigation Bank guarantees the pricing and availability of the credits for 90 days.
- Extension Option: If your permit isn’t issued within 90 days, you can provide another 10% deposit for an additional 90-day period. All deposits are eventually applied to the final purchase price.
Why Reserve Early?
Even if the amount of credits required may change during the permitting process, it’s wise to enter into a reservation agreement early on. Why?
- Lock-In Pricing: The banks increase their pricing periodically. By reserving early, you ensure that your pricing is locked in.
- Limited Availability: There’s a limited number of credits available at any given time at a bank. By reserving the credits, the bank holds those credits specifically for your project.
The process of purchasing mitigation credits doesn’t have to be complex. With a clear understanding of the reservation process and timely action, you can ensure that your project proceeds without unnecessary delays or increased costs.
Feel free to contact us if you have any questions or need assistance with your mitigation credit needs. Making environmental responsibility accessible and straightforward is our goal, and we’re here to guide you every step of the way.