in order to start. Mr. Saphire asked who the buyers are. It was discussed that someone who needs offsets. Mr. Van Voorhis said Shell is buying massive amounts of carbon and they have also contracted with the Duke Energy, etc. They are busing the credits to reduce their footprint in the operations. He said they will try to go the extra mile to procure offsets to determine what they can do. He discussed some of the companies and what they are doing to procure products and reduce their footprint. He said it is important to step back and see that offsets are not masking the climate problem and efficacy is only helping us move forward. He said he is also dealing with other possibilities of how to repair what has already been done. What is motivating them is they have to develop holistic strategies to do this.

Mr. David said there is supply and demand and one very important point is it does not have to be one locality. There is a higher value for these credits for the higher acreage being bought that have to aggregate. Mr. Bellows asked if this could be managed through a planning district. He sid it is a great idea and a good fit so they can do the GIS. Mr. James announced the EDA has the broad authorities already imbedded in their code that the PDCs do not have and local IDA EDA are empowered to work multiple jurisdictions now. They are fully empowered to come together to create agency relationships. Mr. Van Voorhiss discussed an illustration of a 1,400 acre property. He said the lowest contract was with Duke Energy on a 40 year project. It is very important with land owners that they are going in and fulfilling an existing contract and having larger companies get landowner’s interested in signing a contract with the EDA will fulfill the contract. Will leave some headroom to play the market. It relates to policy changes and growth rate. He said it gives you an idea of what an issuance under a reasonable scenario is and what the price and amount of carbon for area eases down to dollars. Every existing forest is different in species and how to model down to a baseline. Sometimes you see a 5,000 house project that does not have anything beyond the baseline, just an average growth. He said when you are dealing with reforestation you can get a better pattern because you know what you are planting, what the soil is and what the baseline will be. There is a lot of work in detailing what that is and what the growth will be in dealing with IFM.

Mr. David said it is about water quality for the Rappahannock River and he is convinced this process and configuration will allow nutrient bank and mitigators to complete transactions. Mr. Van Voorhis said we are putting the natural capital assets on the balance sheet and someone from the northlands can buy credits without requiring some type of new built infrastructure to service the county. He said this is important for counties as they try to deal with schools, roads and fire and rescue. With carbon rooted in real property it is a natural fit. This helps the county and localities and the fundamentally radically different ways on how to deal with their budget and infrastructure down the road. Mr. David said he is experienced and as experience builds upon experience it will ramp up. Ms. Connor said we are talking about ag that is largely rented farms within the counties what is going to stop them from putting the farmers out of business because they no longer have the land base to farm. He said this is fantastic in managing existing forestland and giving them funding to maintain the land they have. Mr. VanVoorhis said his company operates in the Mississippi Delta where every farm has wet and low spots and every time the farmer has to zig and zag those are the areas where reforestation are the highest. It is just giving the farmer and land owner another tool in their tool box. Ms. Conner said you are