20030191 Ver 1_MISC Documents_20030219

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ALCOA
May 14, 2004
Mr. John Dorney
NC Dept. of Environment and Natural Resources
4401 Reedy Creek Rd
Raleigh, NC 27607
Dear Mr. Dorney:

On May 7, 2004 coa wer Generating, Inc. (APGI) filed with the Federal Energy Regulatory
Commission t Tapoco ydroelectric Project Relicensing Settlement Agreement (April 2004).
Please find enc ed an ectronic copy of the filing including APGI's letter transmitting the
Relicensing Settlement Agreement, the parties' Joint Explanatory Statement and the Relicensing
Settlement Agreement with its appendices. If needed, hard copies are available upon request by
contacting Paul Shiers at [e-mail].
Thank you. If you have any questions, please feel free to call me at 704-422-5606.
Sincerely,

Gene Ellis
Environmental & Natural Resources Manager
Enclosures
Alcoa Primary Metals
Alcoa Power Generating Inc.
Tapoco Division
300 North Hall Road
Alcoa, TN 37701-2516 USA
Tel: [phone]
Fax:[phone]
WETLANDS f 401 GROUP
MAY 2 1 2004
< ?.UA€., i SECTION
W0238277.1
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ALCOA
March 23, 2004
Mr. John Dorney
NCDENR - Division of Water Quality
4401 Reedy Creek Road
Raleigh, NC 27607
Re: Tapoco Hydroelectric Project, FERC No. 2169
Relicensing Settlement Agreement, April 2004
Dear Mr. Dorney:
Alcoa Primary Metals
Alcoa Power Generating Inc.
Tapoco Division
300 North Hall Road
Alcoa, Tennessee 37701-2516
Tel: [phone]
Fax: [phone]

Enclosed are the Joint Explanatory Statement and the Relicensing Settlement Agreement for the
Tapoco Hydroelectric Project. The Relicensing Settlement Agreement consists of the following:
Section 1.0 General
Section 2.0 Settlement Provisions Not Covered By Proposed License Articles
Appendix A Proposed License Articles
Appendix B-1 State Water Quality Certifications
Appendix B-2 Outline of Proposed Legislation Related to Jurisdictional Resolution For Project
Lands Lying Within the Authorized Legislative Boundary of the Park
Appendix B-3 Real Estate Grant and Conveyance Documents Affecting Lands Inside and
Outside the Project Boundary
Appendix B-4 Funding Agreements
Appendix B-5 Maps Showing the Proposed Protection of Licensee-Owned lands in Tennessee
and North Carolina
Appendix B-6 USFWS' Biological Assessment
Appendix C Licensee's Request to Amend Project Boundary
Appendix D List of Parties and Contacts
Also enclosed in the Relicensing Settlement Agreement is the signature page for your
organization. (See binder pocket). We have sent this package to you because you are identified
in Appendix D as the contact person for your organization. We have not sent the package to the
individual who will be signing the Relicensing Settlement Agreement. As the recipient of this
package, APGI is respectfully requesting that you obtain the appropriate signature for your
Illy
organization. Please have the appropriate individual sign on the space provided and either print
or type (to the extent that the information is not already included on the signature page) both the
name and title of the individual signing.
As you know, the Relicensing Settlement Agreement is drafted such that it will become effective
on April 16, 2004. Therefore, it is necessary that APGI receive all signatures as close as possible
and preferably prior to April 16. Please return the original signature page by overnight express
service or certified first class mail return receipt requested to:
Jody Cason
Long View Associates, Inc
4900 Jacobs Glenn Road
Richmond, VA 23236
If, for some reason, you are unable to obtain your organization's signature by April 16, 2004,
please contact Ms. Cason at 804-675-3216 as soon as possible.
Once we have received the signature page from each organization, APGI will file the Joint
Explanatory Statement and Relicensing Settlement Agreement with FERC as an Offer of
Settlement pursuant to 18 C.F.R. 8385.602 on or about April 30, 2004.
Thank you for all the hard work that each of you has committed to this very significant milestone
in the Tapoco relicensing process. The Relicensing Settlement Agreement and the commitments
contained therein are an endeavor of which we all can be proud.
Sincerely,
aaxl`??
Walter F. Brockway
Operations Manager Hydroelectric Systems
Alcoa Primary Metals
Enclosure
Tapoco Hydroelectric Project
FERC No. 2169
Joint Explanatory Statement
This statement presents an overview and explanation of a comprehensive Settlement Agreement
reached between License Applicant Alcoa Power Generating Inc. and a super majority of
participants in this licensing proceeding. This Settlement Agreement is intended to replace five
Agreements in Principle that were executed in September 2003 and filed with the Commission.
The Parties respectfully request that the Commission (i) adopt the Settlement Agreement as its
preferred alternative for the purposes of the National Environmental Policy Act, (ii) incorporate
without modification the Proposed License Articles into a New License, and (iii) issue a New
License with a term of 40 years.
Background
On February 21, 2003, the Tapoco Division of Alcoa Power Generating Inc. (APGI) filed an
Application for a New License with the Federal Energy Regulatory Commission ("FERC" or "the
Commission) for its Tapoco Project, FERC Project No. 2169 (Tapoco Project or the Project).
The Project plays a central role in APGI's ability to generate economic, flexible and readily-
available hydropower.
In September of 2003, APGI and a super majority of the participants in its Applicant Prepared
Environmental Assessment (APEA) alternative licensing procedure for the Project reached a
series of Agreements In Principle (AIPs) relating to issues pending in the relicensing.
Subsequently, those participants engaged in a negotiated settlement process (using the AIPs as
a basis for further discussion) to achieve a balance of competing resource interests in the Tapoco
Project. This effort produced a consensus of nearly all interested participants on protection,
mitigation and enhancement measures (PMEs) for the Project that address ecological resources
as well as other beneficial uses of the Cheoah and Little Tennessee Rivers, including hydropower
generation, watershed protection, endangered species enhancement, fish passage and
recreational opportunities, as required by Sections 4(e), 10(a), 100) and 18 of the Federal Power
Act (FPA). The participants in'this process included APGI, state and federal resource agencies,
the Eastern Band of Cherokee Indians, local governments and homeowner associations, and
national and local non-governmental organizations (NGOs).
This Joint Explanatory Statement provides a framework for understanding the outcome of the
Tapoco Project relicensing process, which is detailed in this Settlement Agreement (SA).
Importantly, the SA should be read and evaluated by FERC as a stand-alone proposal of PMEs
that supercedes the proposals in APGI's Application for a New License.
The Settlement Agreement Process
This SA is the result of an intensive effort to relicense the Tapoco Project that was begun seven
years ago and was formally initiated by the APEA scoping of participant interests more than five
years ago. With the signing and filing of the AIPs, the settlement process gained significant
momentum. Drafting Committees comprised of AIP signatories were formed to prepare
settlement language implementing the AIPs and to provide forums for resolving any remaining
disputes. The Drafting Committees included a Legal Committee, a Technical Committee, a Lands
Committee, and a Legislative Committee, among others. Together, these Committees created
this legally binding SA to implement the agreed-upon PMEs and to govern the relationship among
the Parties over the life of the New License. The Parties to the Settlement are listed in Appendix
D of the SA.
The Settlement Agreement
The SA is comprised of three parts:
1. General Provisions that include the legal definitions and standards of the SA;
2. Settlement Provisions Not Covered by the Proposed License Articles, including interim
operations at the Santeetlah Development, various funding commitments by APGI and federal
and State agencies, certain law enforcement and management commitments on non-project
lands, and commitments regarding land transfers and land management stipulations; and
3. Appendices, including:
a) Proposed License Articles that establish the Licensee's obligations that will be enforceable by
the Commission. The Parties to the Settlement have concluded that these proposed articles,
taken together with other commitments made in the SA and with the State certifications pursuant
to Section 401 of the Clean Water Act (CWA), will ensure that the Project is and will be best
adapted to a comprehensive plan of development of the Little Tennessee River and its tributaries,
particularly the Cheoah River, and that it complies with all applicable laws. These Proposed
License Articles have been drafted to conform to the Commission's need to assure enforcement
of the entirety of a license. The articles specify operational requirements including flow schedules
and values, recreational enhancements, shoreline management provisions, cultural resource
management provisions, fish passage provisions, and PME enhancement funding; and
b) Various Orders and Agreements, including CWA certifications by the States of North Carolina
and Tennessee; the outline of proposed federal legislation that resolves any remaining
jurisdictional issues that the Commission might have in this relicensing; real estate grant and
conveyance documents that are part and parcel of the PMEs for this relicensing; funding
agreements; the United States Fish and Wildlife Service's Endangered Species Act (ESA)
biological assessment (BA); Project-area maps; a request to amend the Project boundary, and a
list of Parties and Primary Contacts.
These three parts (and related documents incorporated by reference) comprise the entire SA
among the Parties to the Settlement. In its issuance of a New License for the Tapoco Project, the
Parties to the Settlement anticipate that the Commission will incorporate into the New License the
Proposed License Articles in Appendix A without material modification. The Parties also
understand that the Commission will incorporate the conditions of the State CWA 401
certifications and any conditions by the U.S. Fish and Wildlife Service consistent with the ESA BA
in Appendix B into the New License as required or authorized by law. The remaining elements of
the SA, including the "Settlement Provisions Not Covered By Proposed License Articles" in
Section 2 of the SA and the documents attached in Appendices B-2, B-3, B-4 and B-6, are for
FERC's information only and will be implemented and enforced as provided in this SA.
FERC Adoption Without Modification
The Parties to the Settlement respectfully urge the Commission to incorporate the Proposed
License Articles into the New License as drafted. The detailed provisions of the Proposed License
Articles reflect the intent of the Parties to ensure the Commission's ability to enforce the license
while fully effectuating the delicately balanced scheme of the SA. Material changes to the
Proposed License Articles could lead to adverse consequences, including the potential for Parties
to withdraw or for the entire SA to be terminated. Therefore, the Parties to the Settlement again
respectfully urge the Commission to honor the Parties' intentions by issuing a New License to
APGI for the Tapoco Project as described herein and without modification.
2
Long-Term Protection Of Lands in the Little Tennessee River Valley
The Parties to the Settlement Agreement consider the real estate exchange, transfer, easement,
option and management agreements between them and APGI to be essential elements of the
Settlement Agreement. These agreements provide long-term or permanent protection for
thousands of acres of non-Project lands owned by APGI in the vicinity of the Project's
impoundments, thereby preserving a unique ecological landscape.
Request To Amend Project Boundary
APGI's Offer of Settlement also includes a Request for FERC approval to amend the Project
boundary to include five tracts of land. Section 2 of the SA sets forth the Parties'
acknowledgement that APGI is filing such a request with FERC and APGI's commitment to place
restrictions on the five tracts of land in the event that FERC rejects APGI's request. The Request
to Amend the Project Boundary is contained in Appendix C of the SA and APGI requests FERC
to approve its request to amend the Project boundary in conjunction with FERC's issuance of a
New License that incorporates the Proposed License Articles as drafted.
Record Support
The Parties to the Settlement concur that the record developed to date in this proceeding
supports the PMEs contained in this SA, including APGI's obligations set forth in the Proposed
License Articles. Each Proposed License Article rests on a thorough review of the technical data
available or produced as part of this relicensing process. The record prepared and filed with the
Commission to date provides a compelling basis on which to approve the SA and incorporate the
Proposed License Articles in the New License issued for the Tapoco Project.
As noted at the outset, APGI utilized an APEA process to develop that record, and all interested
participants, including the Parties to the Settlement, enjoyed a high level of involvement in the
relicensing effort, including involvement in the development of technical study scopes, the
selection of technical consultants, the leadership in technical work groups for each resource area
that reviewed draft study plans and draft study reports, and the National Environmental Policy Act
scoping effort in 1999. In addition to the technical work groups, public meetings and "all
participants meetings were utilized to keep all interested participants informed throughout the
consultation process, and a website was created to provide electronic access to all consultation
materials. In short, the consultation effort for the Tapoco Project was founded on sound science,
shared knowledge, and open communication with all stakeholders.
Term of New License
The Parties to the Settlement have unanimously agreed that the license compliance record by
APGI, and the PMEs and other commitments expressed in this SA merit a 40 year New License
from the Commission, and the Parties to the Settlement have agreed to advocate (including the
filing of requests for rehearing of license with a term less than 40 years) for such a term in any
further filings with Commission.
Non-Settlors
After the AIP process was completed and until February of this year, the Parties to the Settlement
engaged in additional discussions and negotiations with representatives of Graham County, N.C.
and certain private and commercial boating interests that were seeking to create additional
recreational opportunities in the Cheoah River. The aim of those discussions was to create
supplemental protocols that would allow further boatable high flow events beyond those
committed to in this SA in the event that certain biological terms were met and APGI was fully
compensated for its costs. Significant progress was made, and the negotiations resulted in an
agreement by Graham County to sign the North Carolina AIP and this SA. While the remaining
3
boating interests elected not to sign this SA, they have expressed general support for the
biological aspects of the protocols, which are found in Section 2.2.
implementing Legislation
Concurrent with the filing of this SA, the non-federal Parties to the Settlement will respectfully
urge Congress and the President to enact legislation that provides the Commission with
unequivocal authority to relicense the Tapoco Project. If the legislation is still pending when the
Commission is ready to make its relicensing decision based on this SA, the Parties to the
Settlement recognize that the Commission is likely to issue annual licenses to APGI for the
Tapoco Project until such time as the legislation has the force of law. Accordingly, Section 2 of
the SA sets forth APGI's commitment to certain interim measures during any annual license
terms.
4
\O?QF WAT,9,,
? r
O '<
Mr. Randall M. Overbey, President
Alcoa Power Generating Inc.
Tapoco Division
300 North Hall Road
Alcoa, TN 37701-2516
Dear Mr. Overbey:
November 8, 2004
Re: Certification Pursuant to Section 401 of the Federal Clean Water Act for the Tapoco
Hydroelectric FERC Relicensing Project
WQC Project #03-0191
FERC Number 2169
Graham and Swain Counties
Attached hereto is a copy of Certification No. 3447 - revised issued to Alcoa Power Generating,
Inc - Tapoco Division dated November 8, 2004. If we can be of further assistance, do not hesitate to
contact us.
Sincerely,
. Klimek, P.E. rector
Attachments
Cc: Norman Pierson; Property and ReWcbTfsing Manager; Alcoa Power Generating Inc., Tapoco
Division, 300 North Hall Road, Alcoa, TN 37701-2516
Larry Frost, Asheville DWQ Regional Offices
File Copy
Central Files
Darlene Kucken; DWQ Basinwide Planning Program Unit
Steve Reed, NC Division of Water Resources
Chris Goudreau NC Wildlife Resources Commission
Mark Cantrell, US Fish and Wildlife Service - Asheville
John Boaze; Fish and Wildlife Associates (rep. for EBCI)
Sueanna Sumpter, NC Attorney General's Western Office
David Poe; LeBoeuf, Lamb, Greene and MacRae; 1875 Connecticut Ave. NW
Suite 1200; Washington, DC 20009
Michael F. Easley, Governor
William G. Ross Jr., Secretary
North Carolina Department of Environment and Natural Resources
Alan W. Klimek, P.E., Director
Division of Water Quality
ri
N. C. Division of Water Quality, 401 Wetlands Certification Unit,
1650 Mail Service Center, Raleigh, NC 27699-1650 (Mailing Address)
2321 Crabtree Blvd., Raleigh, NC 27604-2260 (Location)
/0101 733-17Ar /nhnnol Q1Q-733-AA03 /fwl 1httn•//h9n am ctnta nn. tic/nrwatlanris

NORTH CAROLINA 401 WATER QUALITY CERTIFICATION
THIS CERTIFICATION is issued in conformity with the requirements of Section 401
Public Laws 92-500 and 95-217 of the United States and subject to the North Carolina Division
of Water Quality ("DWQ") Regulations in 15 NCAC 2H, Section.0500. It is issued to Alcoa
Power Generating, Inc. - Tapoco Division ("the applicant") in Graham and Swain Counties
pursuant to a revised application filed on the 19th day of February, 2003 with a revision dated
March 18, 2003 (extension to October 20, 2003) to, among other things, retain the Santeetlah and
Cheoah Dams on the Cheoah and the Little Tennessee Rivers.
The application provides adequate assurance that the retention of fill material into the
waters of the Cheoah and Little Tennessee Rivers in conjunction with retention and operation of
theses dams and other project activities will not result in a violation of applicable Water Quality
Standards, discharge guidelines and other applicable State laws. Therefore, the State of North
Carolina certifies that this activity will not violate the applicable portions of Sections 301, 302,
303, 306, 307 of PL 92-500 and PL 95-217 if conducted in accordance with the application and
conditions hereinafter set forth.
This approval is only valid for the purpose and design that you submitted in your
application, as described in the revised application. If you?hange your project, you must notify
us and may be required to send us a new application for a new Certification. If the property is
sold, the new owner must be given a copy of the Certification and approval letter and is thereby
responsible for complying with all conditions. For this approval to be valid, you must follow the
conditions listed below. The issuance of this Certification shall not exempt the applicant from
complying with any and all statutes, rules, regulations, or ordinances that may be imposed by
other government agencies (local, state and federal) which have jurisdiction, including but not
limited to applicable river buffer rules in 15A NCAC 2B .0200, erosion and sedimentation
control requirements in 15A NCAC Chapter 4 and under the Division's General Permit
NCG010000, and any requirements pertaining to wetlands under 15A NCAC 2B .0200, 15A
NCAC 2H.0500 and 15A NCAC 21-1.1300.
Conditions(s) of Certification:
1. The Applicant shall release aquatic base flows from Santeetlah Dam in the magnitude
and for the duration described in Table 1. The Applicant shall determine the aquatic base flow
for each month by calculating the average daily inflow (ADI) value for the preceding three
months. The Applicant shall calculate the ADI using its recorded measures of daily change in
reservoir elevation and total discharge (generation flows plus instream flow releases, high flow
event releases and flood discharge flows). If the ADI is greater than the historic 25th percentile
average flow for that month (Table 2), the Applicant shall release flows according to Tier A. If
the ADI is less than or equal to the historic 25th percentile average flow for that month, the
Applicant shall release flows according to Tier B.
Each Friday, the Applicant shall project inflow for the next ten days, which is the
"planning period." The water requirement for the planning period is the volumetric sum of base
flows; high flow event releases, if any; flood discharge flows, if any; Santeetlah Reservoir
Operating Curve increase, if any; and generation. The water available for the planning period is
the volumetric sum of storage above the Santeetlah Reservoir Operating Curve and the planning
period projected inflow. During normal operations, generation will be adjusted to maintain
Santeetlah reservoir elevations at or above the Santeetlah Reservoir Operation Curve. Except as
necessary to meet other requirement of this Certification, such as aquatic base flows and the
Santeetlah Reservoir Operating Curve, generation is not restricted for normal operations.
In order to allow state and federal agencies to complete the collection of three full years
of baseline data in the Cheoah River below Santeetlah Dam, subject to the determination of the
Federal Energy Regulatory Commission ("FERC") in issuing a new license for P-2169, the
Applicant shall release aquatic base flows starting September 1, 2005 or starting in the month
after the effective date of the License, whichever is later.
Table 1. Aquatic base flow releases from Santeetlah dam into the Cheoah River.
Flow Ra te cfs
Month Tier A Tier B
January 50 50
Februa 100 0
March 100 9
April 100 90
May 90 80
June 60 60
Jul 60 50
August 50 40
September 50 40
October 50 40
November 50 40
December 60 50
Table 2. Historic 25`h percentile average flow for Cheoah River
Month Threshold Flow cfs
January 256
February 446
March 484
April 615
May 617
June 526
Jul 403
August 289
September 208
October 141
November 116
December 148
2. The Applicant shall provide high flow events, which follow a repeating five-year
schedule for the term of the License according to Table 3.
-2-
In order to allow state and federal agencies to collect three full years of baseline data in
the Cheoah River below Santeetlah Dam, subject to the determination of FERC in issuing a new
license for the project, the Applicant shall provide high flow events starting September 1, 2005
or in the month after the effective date of the License, whichever is later.
Table 3. High flow releases for the Cheoah River.
High Flows Year 1 Year 2 Year 3 Year 4 Year 5 Magnitude cfs
Event
s Days Event
s Days Event
s Days Event
s Days Event
s Days Day
1 Day
2 Day
3
January
February 1 2 1 2 1 2 1 2 1 2 1000 Var
March 1 3 1 3 1 3 1 3 1 3 1000 600 300
April 2 5 3 6 2 5 2 5 3 6 1000 850 300
May 2 4 2 4 3 6 3 6 3 6 1000 850
June 1 2 1 2 1 2 1000 850
Jul 1 2 1000 850
August 1 1 1000
September 1 1 1 1 1000
October 1 1 1 1 1 1 1000
November 1 1 1 1 1 1 1 1 1 1 1000
December
Total: 10 19 10 19 10 20 10 19 10 20
600 cfs from hour 15 to hour 19, 400 cfs from hour 20 to hour 34; 200 cfs from hour 35 to hour 47; 100 cfs for
hour 48
2 600 cfs from hour 16 to hour 36; 300 cfs from hour 37 to hour 48
3 12:00 a.m. (midnight) shall be the starting point for determining the appropriate time for initiating and changing
flow releases
a. The Applicant shall release high flows via the Tainter gates at Santeetlah Dam. The
Applicant shall use the headwater elevation of Santeetlah Reservoir to determine the gate
opening necessary to make the required high flow release from Santeetlah Dam. The Applicant
shall use the downstream gage at Bearpen Gap during the initial system set up to confirm the
required gate positions to make the flow releases;
b. The Applicant shall schedule high flow events on weekend days (Saturday and Sunday);
schedule three day events on Saturday, Sunday and Monday;
C. The Applicant shall schedule the March event for the third weekend in March and the
November event for the first weekend in November;
d. The Applicant shall schedule one 3-day high flow event in April in years 1, 3, and 4 of
the repeating sequence;
e. The Applicant shall ramp high flow events at 2-inches per hour for flows between the
aquatic base flow and 100 cfs. The Applicant shall use the downstream gage at Bearpen Gap
during the initial system set up to confirm the required gate positions and gate frequencies in
order to ramp the high flow events;
-3-
f. For 2-day events in February, the release duration is 4 hours for day 1; releases are
targeted to begin at hour 11;
g. For 1-, 2-, and 3-day events in March through November, the release duration is 8 hours
for the day 1 high flow releases; releases on day 1 are targeted to begin at hour 8 in March, April,
October, and November, and at hour 9 in May through September;
h. For 2-day events in April through July, the release duration is also 8 hours for the day 2
high flow releases; releases on day 2 are scheduled to begin at hour 8 in April and at hour 9 in
May, June, and July;
i. For 2-day events in April through July, after the end of the 8 hours of high flow on day 1,
the flow will be reduced to 500 cfs until the beginning hour of high flow on day 2;
j. The Applicant shall schedule single day high flow events between September and
November with a minimum of 10 days between events.
k. The Applicant will provide 12 months prior notice to the U.S. Fish and Wildlife Service
(USFWS), the U.S. Forest Service (USFS), the North Catplina Wildlife Resources Commission
(NCWRC), the North Carolina Department of Environment and Natural Resources (NCDENR),
the Eastern Band of Cherokee Indians (EBCI), and Crraham'County of the proposed schedule of
high flow events.
3. The Applicant shall convene an annual planning meeting in early October of each year
which shall include NCDENR, NCWRC, USFS, USFWS and EBCI. If NCDENR, NCWRC,
USFS, USFWS and EBCI notify the Applicant prior to the annual meeting that they have
determined by consensus that unanticipated circumstances have arisen that indicate that
additional aquatic habitat enhancement would result from the reallocation of waste previously
committed to the aquatic base flows and/or high flow event schedule as required in Conditions 1
and 2, then the Applicant shall discuss with these entities the reallocation of water for aquatic
habitat enhancement purposes within the aquatic base flow regime and/or the high flow event
schedule for the year. The Applicant shall cooperate with NCDENR, NCWRC, USFS, USFWS,
and EBCI in implementing any requested water reallocation, with due consideration given to the
following factors.
a. Any reallocation requests shall be based on periodic (i.e. every several years) re-
evaluations of aquatic conditions in the Cheoah River by the above-listed entities;
b. Any requested reallocation shall be designed to minimize any additional lost generation
(either in lost megawatts and/or lost value) and operating costs;
C. Under no circumstances shall water allocated as part of the aquatic base flow regime be
utilized for high flow events and vice versa; nor shall water from one year be reallocated to any
other calendar year;
-4-
d. Any requested reallocation of water must be able to be accommodated with the gate
structures in existence at that time;
If agreement is reached on reallocation, the Applicant shall take all reasonable and necessary
actions to implement the agreement on reallocation. The Applicant shall make a filing with
FERC requesting the approval of the requested revised allocation of flows for that calendar year,
and upon FERC approval will implement the revised aquatic base flow regime and/or high flow
event schedule.
4. Starting in October 2010, in conjunction with the annual planning meeting required in
Condition 3 above, the Applicant will consult with USFWS, USFS, NCWRC, NCDENR, EBCI
and Graham County regarding the possibility of providing additional high flow events on a trial
basis in addition to the high flow events contemplated in the repeating five year schedule
included in Condition 2 above.
If , NCDENR notifies the Applicant that they are in full concurrence that biological
recovery in the Cheoah River has proceeded to a point that additional high flow events should be
scheduled and evaluated on a trial basis, then the Applicant will consult with USFWS, USFS,
NCWRC, NCDENR, EBCI and Graham County, to determine the specific number, magnitude
and timing of such additional trial high flow events. \
In the event that the Applicant and NCDENR agree on the provision of additional trial
high flow events, then no later than 60 days prior to the anticipated start of the additional high
flow events, the Applicant shall file for FERC approval a plan of the proposed revisions to the
repeating five year schedule of high flow events.
In conjunction with the subsequent annual planning meetings, the Applicant will consult
with the USFWS, USFS, NCWRC, NCDENR, and EBCI in order to determine whether to
terminate, continue, or modify the additional trial high flow events, or to recommend to FERC a
permanent change in the repeating five year schedule of high flow events. The determination
shall be based on USFWS, USFS, NCWRC, NCDENR, and EBCI's assessment of the effects of
the additional trial high flow events on the Cheoah River aquatic and associated riparian
biological communities, on water levels in Santeetlah Reservoir, and other water-quality related
issues.
The Applicant shall make additional filings, as appropriate, notifying FERC of any
additional requested revisions to the repeating five year schedule of high flow events, and upon
FERC approval will implement the revised high flow event schedule.
5. If inflow is not adequate to provide high flow releases and maintain required reservoir
levels while maintaining instream flows, then equitable reductions in Santeetlah Reservoir water
levels, and high flow releases to the Cheoah River will be made as follows. If the water
available for the planning period (as defined in Condition 1) is less than the water requirement
with no generation for the scheduling period the following low flow stages will be implemented.
The low flow stage will remain in effect until the next planning period when the water
requirement is compared to the water available. If the water available is less than the water
-5-
requirement, the next stage will be implemented. If the water available is greater than the water
requirement the previous stage will be implemented or normal operations if at Stage 1. If the
actual inflow is appreciably different than the projected inflow the Applicant may make
adjustments to the low flow stage during the planning period.
Stage 1: Reduce high flow duration by 25% (2 hours for each day of the high flow event).
Elevation minimum decreased by 0.25 feet below operating curve.
Stage 2: Reduce high flow duration by 50% (4 hours for each day of the high flow event).
Elevation minimum decreased by 0.50 feet below the operating curve.
Stage 3: Reduce high flow duration by 100%. Elevation minimum decreased by 0.75 feet below
the operating curve.
Stage 4: Elevation minimum decreased by 1.0 feet below operating curve. If continuous
discharge is at Tier A reduce continuous discharge from Tier A to Tier B level.
Stage 5: Continue releasing Tier B continuous discharge` through spillway gates until elevation
reaches bottom of the spillway gates (or valve).
Stage 6: Reduce continuous discharge to inflow.
Based on actual experience, the Applicant may consult with state and federal agencies to
modify the Low Inflow Protocol. If agreement is reached with NCDENR on modifying the
protocol, the Applicant shall make a filing with FERC requesting approval of the proposed
modification and upon FERC approval will implement the modified protocol
6. The Applicant shall continue funding the existing U.S. Geological Survey (USGS)
Bearpen Gap gage (Station No. 0351706800) on the Cheoah River below Santeetlah Dam.
Additionally, the Applicant shall install and maintain a calibrated staff gage, or the equivalent, at
the Joyce Kilmer Bridge to allow for the visual confirmation of Cheoah Rivers flows. The
Applicant shall also make available the calculated release to the Cheoah River at the Santeetlah
dam on an hourly basis via the Internet.
7. Prior to the completion of the gate modifications required in Condition 8 below, the
continuous base flow release shall consist of a flow of approximately 50 cfs released through an
existing Tainter gate at Santeetlah Dam. Prior to the completion of the Tainter gate automation
required in Condition 8 below, high flow events shall be made with consideration of the
following factors:
a. Releases from November 1 through March 31 will be scheduled to occur during the
regular work week (Monday through Friday) to minimize additional personnel costs associated
with releases on weekends using the existing gates and related equipment; releases from April 1
through October 31 will occur on weekends;
-6-
b. Releases will be initiated using the "Year 1" release schedule in Table 3 and subsequent
years will use "Year 2", "Year 3" etc.;
C. Ramping rates will not apply;
d. The Applicant shall make reasonable effort to provide the high flow events according to
the high flow event schedule in Table 3, however some variation in terms of actual timing of
events may occur during this interim period until the gate modifications are complete.
8. To accommodate release of the aquatic base flow and high flow events, the Applicant
shall add "piggy-back" gates to, and automate, either two or three of the existing Tainter gates on
Santeetlah Dam within 24 months of the effective date of the new license. The Applicant may
deviate from the Santeetlah Operating Curve, the aquatic base and high flow releases during the
winter drawdown period to allow for construction in the field of the modified Tainter gates.
Within 90 days of the effective date of the new license, the Applicant shall file, for approval by
FERC, a plan and schedule for modifying the Tainter gates.
9. The Applicant shall operate Santeetlah Reservoir according to the following operating
rules except when operating under the Low Inflow Protocql (Condition 5):
a. From January 1 to March 1, the elevation of Santeetlah Reservoir shall not drop below
elevation 1931 ft.
b. From March 1 to April 1 the elevation of Santeetlah Reservoir shall not drop below the
line between elevation 1931 ft. on March 1 and elevation 1936 ft. on April 1.
C. From April 1 to June 23, the elevation of Santeetlah Reservoir shall not drop below
elevation 1936 ft.
d. From June 23 to July 1 the elevation of Santeetlah Reservoir shall not drop below the line
between elevation 1936 ft. on June 23 and elevation 1937 ft. on July 1.
e. From July 1 to September 8, the elevation of Santeetlah Reservoir shall not drop below
elevation 1937 ft.
f. From September 8 to September 16 the elevation of Santeetlah Reservoir shall not drop
below the line between elevation 1937 ft. on September 8 and 1936 ft. on September 16.
g. From September 16 to November 1, the elevation of Santeetlah Reservoir shall not drop
below elevation 1936 ft.
h. From November 1 to December 1 the elevation of Santeetlah Reservoir shall not drop
below the line between elevation 1936 ft. on November 1 and elevation 1931 ft. on December 1.
i. From December 1 through December 31, the reservoir elevation shall not drop below
elevation 1931-ft.
-7-
10. The Applicant shall monitor the elevation of Santeetlah Reservoir on an hourly basis
using a water level sensor located upstream of the gatehouse, on the upstream face of the intake.
The Applicant shall electronically transmit the water level data recorded by the sensor to the
dispatcher's office in Alcoa, Tennessee. The Applicant shall make available Santeetlah
Reservoir elevation data on an hourly basis via the Internet.
Based on actual experience, the Applicant may consult with interested parties on the actual water
level results at Santeetlah from the management practices implemented. The Applicant may
implement only minor adjustments of the Santeetlah Reservoir Operating Curve, and only after
such consultation and approval by the North Carolina Division of Water Quality (DWQ).
11. During emergencies and for planned project maintenance or inspection activities, the
Applicant may vary from the reservoir operating curve, vary flows below the required aquatic
base flows or lake levels, or vary from the high flow release schedule. Under such conditions,
the Applicant shall notify the NCDENR, NCWRC, USFS and USFWS in writing and via
telephone according to the following schedule. For planned project maintenance or inspection
activities, the Applicant shall notify said agencies no less than 15 days prior to the variance. For
unforeseen circumstances required by an operating emergency, the Applicant shall notify the
same agencies in writing as soon as practical, but not more\than 7 days after the beginning of the
event. If requested by DWQ, the Applicant shall expeditioutsly consult with any concerned
agency to discuss the Applicant's emergency, maintenance and inspection activities, and the
Applicant shall give due regard to any agency's recommendations. In lieu of the aforesaid
requirements in this paragraph, the Applicant may develop and implement a protocol to manage
reservoir levels and flows during emergency, maintenance and inspection activities. If DWQ
determines that any recurring variances may have an adverse effect on water quality, DWQ may
require the Applicant to develop and implement a protocol to minimize the impacts of the
Applicant's emergency, maintenance and inspection activities on water quality. No protocol will
become effective without approval by DWQ. The Applicant shall take all reasonable and
necessary actions to implement any such protocol.
12. The Applicant shall identify and report in writing existing and proposed consumptive
uses to DWQ and the N.C. Division of Water Resources (DWR). The Applicant shall report the
existing or projected (as appropriate) average consumptive withdrawal and maximum capacity
for each withdrawal. The Applicant shall report existing consumptive uses to DWQ and DWR
within 60 days of the acceptance of the License and shall report proposed new or expanded
consumptive uses to DWQ and DWR within 30 days of receiving a request for the proposed new
or expanded withdrawal and before submitting any requests to FERC.
13. The Applicant shall conduct its activities in a manner consistent with State water quality
standards (including any requirements resulting from compliance with section 303(d) of the
Clean Water Act, 33 U.S.C. § 1313(d)) and any other appropriate requirements of State law and
federal law. If DWQ determines that such standards or laws are not being met (including the
failure to sustain a designated or achieved use or to comply with any new or amended water
quality standards or other appropriate requirements of State or federal law) or that State or
federal law is being violated, or that further conditions are necessary to assure compliance, DWQ
-8-
may reevaluate and modify this Certification to include conditions appropriate to assure
compliance with such standards and requirements in accordance with 15A NCAC 2H.0507(d).
Before modifying the Certification, DWQ will notify the Applicant and FERC, provide public
notice in accordance with 15A NCAC 2H.0503 and provide opportunity for public hearing in
accordance with 15A NCAC 2H.0504. Any new or revised conditions will be provided to the
Applicant in writing, will be provided to the U.S. Army Corps of Engineers for reference in any
permit issued pursuant to Section 404 of the Federal Water Pollution Control Act, 33 U.S.C. §
1344, for the project, and shall also become conditions of the License. The conditions of this
Certification are not modified or superseded by any condition or article of the License.
14. This Certification does not grant or affirm any property right, license or privilege in any
waters or any right of use in any waters. This Certification does not authorize any person to
interfere with the riparian rights, littoral rights or water use rights of any other person, and this
Certification does not create any prescriptive right or any right of priority regarding any usage of
water. No person shall interpose this Certification as a defense in any action respecting the
determination of riparian or littoral rights or other water use rights. No consumptive user is
deemed by virtue of this Certification to possess any prescriptive or other right of priority with
respect to any other consumptive user regardless of the quantity of the withdrawal or the date on
which the withdrawal was initiated or expanded. This Certification issues on the express
understanding of DENR that, pursuant to Federal Power Aft section 27, 16 U.S.C. § 821, the
License does not establish or determine a proprietary right t" any use of water. It establishes the
nature of the use to which a proprietary right may be put under the Federal Power Act.
Violations of any condition herein set forth may result in revocation of this Certification
and may result in criminal and/or civil penalties or other enforcement action. This Certification
shall become null and void unless the above conditions are made conditions of the FERC Permit.
This Certification shall expire upon expiration of the FERC permit.
If this Certification is unacceptable to you, you have the right to an adjudicatory hearing
upon written request within sixty (60) days following receipt of this Certification. This request
must be in the form of a written petition conforming to Chapter 150B of the North Carolina
General Statutes and filed with the Office of Administrative Hearings, P.O. Box 27447, Raleigh,
N.C. 27611-7447. If modifications are made to an original Certification, you have the right to
an adjudicatory hearing on the modifications upon written request within sixty (60) days
following receipt of the Certification. Unless such demands are made, this Certification shall be
final and binding.
This is the 8th day of November 2004
Certification Number 3447
m
e DIVISION OF WATER QUALITY
. . Direc r
-9-
Certificate of Completion
DWQ Project No.: 03-0191 modified County: Graham and Swain Counties
Applicant: Alcoa Power Generating, Inc - Tapoco Division
Project Name: Tapoco Hydroelectric FERC Relicensing Project
Date of Issuance of 401 Water Quality Certification: November 8, 2004
Upon completion of all work approved within the 401 Water Quality Certification or applicable Buffer
Rules, and any subsequent modifications, the applicant is required to return this certificate to the
401 /Wetlands Unit, North Carolina Division of Water Quality, 1621 Mail Service Center, Raleigh,
NC, 27699-1621.This form may be returned to DWQ by the applicant, the applicant's authorized
agent, or the project engineer. It is not necessary to send certificates from all of these.
Applicant's Certification
I, , hereby state that, to the best of my abilities, due care
and diligence was used in the observation of the construction such that the construction was
observed to be built within substantial compliance and intent of the 401 Water Quality Certification
and Buffer Rules, the approved plans and specifications, and other supporting materials.
Signature:
Agent's Certification
Date:
?? _
1, , hereby state that, to the best of my abilities, due care
and diligence was used in the observation of the construction such that the construction was
observed to be built within substantial compliance and intent of the 401 Water Quality Certification
and Buffer Rules, the approved plans and specifications, and other supporting materials.
Signature: Date:
If this project was designed by a Certified Professional
as a duly registered Professional (i.e.,
Engineer, Landscape Architect, Surveyor, etc) in the State of North Carolina, having been
authorized to observe (periodically, weekly, full time) the construction of the project, for the
Permittee hereby state that, to the best of my abilities, due care and diligence was used in the
observation of the construction such that the construction was observed to be built within
substantial compliance and intent of the 401 Water Quality Certification and Buffer Rules, the
approved plans and specifications, and other supporting materials.
Signature: Registration No. Date

STATE OF NORTH CAROLINA
COUNTY OF GRAHAM
Alcoa Power Generating, Inc.,
Tapoco Division,
Petitioner,
V.
NC Dept. of Environment and
Natural Resources, Division of
Water Quality,
Respondent.
)
IN THE OFFICE OF
ADMINISTRATIVE HEARINGS
04 EHR 0256
(;
1 PEI
l.d ? t
g1gN
N 0 V 0 :a. 2004
WA.,...
OJ,?,_I7Y
CONSENT AGREOFMM.AilT2s!Clt,',MWA.iER BRANCH
AND SETTLEMENT
The petitioner, Alcoa Power Generating, Inc., Tapoco Division
("Alcoa"), and the respondent, North Carolina Department of
Environment and Natural Resources, Division of Water Quality
("DWQ"), hereby enter into this Consent Agreement and Settlement
("Agreement") in order to resolve matters in controversy between
them pursuant to N.C.G.S. S 150B-31(b).
This above-captioned matter arose out of the 17 December 2003
issuance by DWQ to Alcoa of Certification No. 3447, pursuant to
Section 401 of the Clean Water Act and in conjunction with a re-
licensing project before the Federal Energy Regulatory Commission
("FERC"). DWQ's action certified that the retention of fill
material in the waters of the Cheoah and Little Tennessee Rivers in
conjunction with the retention and operation of the Santeetlah and
Cheoah Dams would not result in a violation of applicable water

quality standards, if performed in accordance with the terms of the
petitioner's application and the conditions of the certification.
Alcoa timely commenced the above-captioned contested case to
challenge the content of the 401 certification, contending that the
document should be amended to make it consistent with the terms of
the final, April 2004, settlement in the FERC re-licensing
proceeding ("the FERC settlement"). The parties subsequently
engaged in settlement negotiations in the above-styled action and
developed a draft amended 401 certification which is agreeable to
both.
Therefore, without any trial of fact or law in the above-
styled matter, THE PARTIES AGREE THAT:
1. Within ten (10) days following full execution of this
Agreement, the respondent, DWQ, will issue to the petitioner,
Alcoa, an amended 401 certification containing the same terms and
conditions as the draft certification developed and agreed to by
the parties. A copy of the draft is attached to this Agreement,
marked "Exhibit A," and incorporated by reference herein.
2. By execution of this Agreement, Alcoa accepts and agrees
not to challenge the terms and conditions of the amended
certification to be issued pursuant to Paragraph 1, above.
3. Alcoa explicitly waives its right to a contested case
hearing in this matter and additionally agrees to withdraw its
-2-
petition for contested case hearing previously filed with the
office of Administrative Hearings in the above-captioned matter.
Petitioner shall file a notice of withdrawal of request for
contested case hearing within ten (10) days following full
execution of this Agreement.
4. The intent of the parties in agreeing to amend the
subject 401 certification is to resolve any inconsistencies between
that document and the April 2004 FERC settlement relevant to
protection of water quality in those waters affected by the FERC
project. Nothing contained in this Agreement or the amended 401
certification to be issued hereunder shall be construed to effect
any amendment or alteration of any term or condition of the April
2004 FERC settlement.
(Signatures on following page.)
-3-
FOR THE PETITIONER:
LEBOEUF, LAMB, GREENE &
MACRAE, L.L.P.
Attorneys for the petitioner
By: David R. Poe
1875 Connecticut Ave. NW,
Suite 1200
Washington DC 20009
Date:
Ivor 00
FOR THE RESPONDENT:
ROY COOPER
Attorney General
Sueanna P. Sumpter
Assistant Attorney General
N.C. Department of Justice
42 N. French Broad Avenue
Asheville NC 28802
Date:
DIVISION OF WATER QUALITY
7 o R. Dorney
Su ervisor
4 Certification Program
N,? tr2'
-4-
Exhibit A
DRAFT
NORTH CAROLINA 401 WATER QUALITY CERTIFICATION
THIS CERTIFICATION is issued in conformity with the requirements of Section 401
Public Laws 92-500 and 95-217 of the United States and subject to the North Carolina Division
of Water Quality ("DWQ") Regulations in 15 NCAC 2H, Section.0500. It is issued to Alcoa
Power Generating, Inc. - Tapoco Division ("the applicant") in Graham and Swain Counties
pursuant to a revised application filed on the 19th day of February, 2003 with a revision dated
March 18, 2003 (extension to October 20, 2003) to, among other things, retain the Santeetlah and
Cheoah Dams on the Cheoah and the Little Tennessee Rivers.
The application provides adequate assurance that the retention of fill material into the
waters of the Cheoah and Little Tennessee Rivers in conjunction with retention and operation of
theses dams and other project activities will not result in a violation of applicable Water Quality
Standards, discharge guidelines and other applicable State laws. Therefore, the State of North
Carolina certifies that this activity will not violate the applicable portions of Sections 301, 302,
303, 306, 307 of PL 92-500 and PL 95-217 if conducted in accordance with the application and
conditions hereinafter set forth.
This approval is only valid for the purpose and design that you submitted in your
application, as described in the revised application. If you change your project, you must notify
us and may be required to send us a new application for a new Certification. If the property is
sold, the new owner must be given a copy of the Certification and approval letter and is thereby
responsible for complying with all conditions. For this approval to be valid, you must follow the
conditions listed below. The issuance of this Certification shall not exempt the applicant from
complying with any and all statutes, rules, regulations, or ordinances that may be imposed by
other government agencies (local, state and federal) which have jurisdiction, including but not
limited to applicable river buffer rules in 15A NCAC 2B .0200, erosion and sedimentation
control requirements in 15A NCAC Chapter 4 and under the Division's General Permit
NCGO10000, and any requirements pertaining to wetlands under 15A NCAC 2B .0200, 15A
NCAC 211.0500 and 15A NCAC 2H. 1300.
Conditions(s) of Certification:
1. The Applicant shall release aquatic base flows from Santeetlah Dam in the magnitude
and for the duration described in Table 1. The Applicant shall determine the aquatic base flow
for each month by calculating the average daily inflow (ADI) value for the preceding three
months. The Applicant shall calculate the ADI using its recorded measures of daily change in
reservoir elevation and total discharge (generation flows plus instream flow releases, high flow
event releases and flood discharge flows). If the ADI is greater than the historic 25th percentile
average flow for that month (Table 2), the Applicant shall release flows according to Tier A. If
the ADI is less than or equal to the historic 25th percentile average flow for that month, the
Applicant shall release flows according to Tier B.
Each Friday, the Applicant shall project inflow for the next ten days, which is the
"planning period." The water requirement for the planning period is the volumetric sum of base
flows; high flow event releases, if any; flood discharge flows, if any; Santeetlah Reservoir
Operating Curve increase, if any; and generation. The water available for the planning period is
the volumetric sum of storage above the Santeetlah Reservoir Operating Curve and the planning
period projected inflow. During normal operations, generation will be adjusted to maintain
Santeetlah reservoir elevations at or above the Santeetlah Reservoir Operation Curve. Except as
necessary to meet other requirement of this Certification, such as aquatic base flows and the
Santeetlah Reservoir Operating Curve, generation is not restricted for normal operations.
In order to allow state and federal agencies to complete the collection of three full years
of baseline data in the Cheoah River below Santeetlah Dam, subject to the determination of the
Federal Energy Regulatory Commission ("FERC") in issuing a new license for P-2169, the
Applicant shall release aquatic base flows starting September 1, 2005 or starting in the month
after the effective date of the License, whichever is later.
Table 1. Aquatic base flow releases from Santeetlah dam into the Cheoah River.
Flow Ra te cfs
Month Tier A Tier B
January 50 0
February 100 4
March 100 9
A ril 100 90
May 90 80
June 60 60
Jul 60 50
August 50 40
September 50 40
October 50 40
November 50 40
December 60 50
Table 2. Historic 25"' percentile average flow for Cheoah River
Month Threshold Flow cfs)
January 256
February 446
March 484
April 615
May 617
June 526
Jul 403
August 289
September 208
October 141
November 116
December 148
2. The Applicant shall provide high flow events, which follow a repeating five-year
schedule for the term of the License according to Table 3.
-2-
In order to allow state and federal agencies to collect three full years of baseline data in
the Cheoah River below Santeetlah Dam, subject to the determination of FERC in issuing a new
license for the project, the Applicant shall provide high flow events starting September 1, 2005
or in the month after the effective date of the License, whichever is later.
Table 3. High flow releases for the Cheoah River.
High Flows Year 1 Year 2 Year 3 Year 4 Year 5 Ma nitude cfs
Event
s Days Event
s Days Event
s Days Event
s Days Event
s Days Day
1 Day
2 Day
3
January
February 1 2 1 2 1 2 1 2 1 2 1000 Var
March 1 3 1 3 1 3 1 3 1 3 1000 600 300
April 2 5 3 6 2 5 2 5 3 6 1000 850 300
May 2 4 2 4 3 6 3 6 3 6 1000 850
June 1 2 1 2 1 2 1000 850
Jul 1 2 1000 850
August 1 1 1000
September 1 1 1 1 1000
October 1 1 1 1 1 1 1000
November 1 1 1 1 1 1 1 1 1 1 1000
December
Total: 10 19 10 19 10 20 10 19 10 20
' 600 cfs from hour 15 to hour 19, 400 cfs from hour 20 to hour 34; 200 cfs from hour 35 to hour 47; 100 cfs for
hour 48
z 600 cfs from hour 16 to hour 36; 300 cfs from hour 37 to hour 48
3 12:00 a.m. (midnight) shall be the starting point for determining the appropriate time for initiating and changing
flow releases
a. The Applicant shall release high flows via the Tainter gates at Santeetlah Dam. The
Applicant shall use the headwater elevation of Santeetlah Reservoir to determine the gate
opening necessary to make the required high flow release from Santeetlah Dam. The Applicant
shall use the downstream gage at Bearpen Gap during the initial system set up to confirm the
required gate positions to make the flow releases;
b. The Applicant shall schedule high flow events on weekend days (Saturday and Sunday);
schedule three day events on Saturday, Sunday and Monday;
C. The Applicant shall schedule the March event for the third weekend in March and the
November event for the first weekend in November;
d. The Applicant shall schedule one 3-day high flow event in April in years 1, 3, and 4 of
the repeating sequence;
e. The Applicant shall ramp high flow events at 2-inches per hour for flows between the
aquatic base flow and 100 cfs. The Applicant shall use the downstream gage at Bearpen Gap
during the initial system set up to confirm the required gate positions and gate frequencies in
order to ramp the high flow events;
-3-
f. For 2-day events in February, the release duration is 4 hours for day 1; releases are
targeted to begin at hour 11;
g. For 1-, 2-, and 3-day events in March through November, the release duration is 8 hours
for the day 1 high flow releases; releases on day 1 are targeted to begin at hour 8 in March, April,
October, and November, and at hour 9 in May through September;
h. For 2-day events in April through July, the release duration is also 8 hours for the day 2
high flow releases; releases on day 2 are scheduled to begin at hour 8 in April and at hour 9 in
May, June, and July;
i. For 2-day events in April through July, after the end of the 8 hours of high flow on day 1,
the flow will be reduced to 500 cfs until the beginning hour of high flow on day 2;
j. The Applicant shall schedule single day high flow events between September and
November with a minimum of 10 days between events.
k. The Applicant will provide 12 months prior notice to the U.S. Fish and Wildlife Service
(USFWS), the U.S. Forest Service (USFS), the North Carolina Wildlife Resources Commission
(NCWRC), the North Carolina Department of Environment\and Natural Resources (NCDENR),
the Eastern Band of Cherokee Indians (EBCI), and Graham County of the proposed schedule of
high flow events.
3. The Applicant shall convene an annual planning meeting in early October of each year
which shall include NCDENR, NCWRC, USFS, USFWS and EBCI. If NCDENR, NCWRC,
USFS, USFWS and EBCI notify the Applicant prior to the annual meeting that they have
determined by consensus that unanticipated circumstances have arisen that indicate that
additional aquatic habitat enhancement would result from the reallocation of waste previously
committed to the aquatic base flows and/or high flow event schedule as required in Conditions 1
and 2, then the Applicant shall discuss with these entities the reallocation of water for aquatic
habitat enhancement purposes within the aquatic base flow regime and/or the high flow event
schedule for the year. The Applicant shall cooperate with NCDENR, NCWRC, USFS, USFWS,
and EBCI in implementing any requested water reallocation, with due consideration given to the
following factors.
a. Any reallocation requests shall be based on periodic (i.e. every several years) re-
evaluations of aquatic conditions in the Cheoah River by the above-listed entities;
b. Any requested reallocation shall be designed to minimize any additional lost generation
(either in lost megawatts and/or lost value) and operating costs;
C. Under no circumstances shall water allocated as part of the aquatic base now regime be
utilized for high flow events and vice versa; nor shall water from one year be reallocated to any
other calendar year;
-4-
d. Any requested reallocation of water must be able to be accommodated with the gate
structures in existence at that time;
If agreement is reached on reallocation, the Applicant shall take all reasonable and necessary
actions to implement the agreement on reallocation. The Applicant shall make a filing with
FERC requesting the approval of the requested revised allocation of flows for that calendar year,
and upon FERC approval will implement the revised aquatic base flow regime and/or high flow
event schedule.
4. Starting in October 2010, in conjunction with the annual planning meeting required in
Condition 3 above, the Applicant will consult with USFWS, USFS, NCWRC, NCDENR, EBCI
and Graham County regarding the possibility of providing additional high flow events on a trial
basis in addition to the high flow events contemplated in the repeating five year schedule
included in Condition 2 above.
If , NCDENR notifies the Applicant that they are in full concurrence that biological
recovery in the Cheoah River has proceeded to a point that additional high flow events should be
scheduled and evaluated on a trial basis, then the Applicant will consult with USFWS, USFS,
NCWRC, NCDENR, EBCI and Graham County, to determine the specific number, magnitude
and timing of such additional trial high flow events. .
In the event that the Applicant and NCDENR agree on the provision of additional trial
high flow events, then no later than 60 days prior to the anticipated start of the additional high
flow events, the Applicant shall file for FERC approval a plan of the proposed revisions to the
repeating five year schedule of high flow events.
In conjunction with the subsequent annual planning meetings, the Applicant will consult
with the USFWS, USFS, NCWRC, NCDENR, and EBCI in order to determine whether to
terminate, continue, or modify the additional trial high flow events, or to recommend to FERC a
permanent change in the repeating five year schedule of high flow events. The determination
shall be based on USFWS, USFS, NCWRC, NCDENR, and EBCI's assessment of the effects of
the additional trial high flow events on the Cheoah River aquatic and associated riparian
biological communities, on water levels in Santeetlah Reservoir, and other water-quality related
issues.
The Applicant shall make additional filings, as appropriate, notifying FERC of any
additional requested revisions to the repeating five year schedule of high flow events, and upon
FERC approval will implement the revised high flow event schedule.
5. If inflow is not adequate to provide high flow releases and maintain required reservoir
levels while maintaining instream flows, then equitable reductions in Santeetlah Reservoir water
levels, and high flow releases to the Cheoah River will be made as follows. If the water
available for the planning period (as defined in Condition 1) is less than the water requirement
with no generation for the scheduling period the following low flow stages will be implemented.
The low flow stage will remain in effect until the next planning period when the water
requirement is compared to the water available. If the water available is less than the water
-5-
requirement, the next stage will be implemented. If the water available is greater than the water
requirement the previous stage will be implemented or normal operations if at Stage 1. If the
actual inflow is appreciably different than the projected inflow the Applicant may make
adjustments to the low flow stage during the planning period.
Stage 1: Reduce high flow duration by 25% (2 hours for each day of the high flow event).
Elevation minimum decreased by 0.25 feet below operating curve.
Stage 2: Reduce high flow duration by 50% (4 hours for each day of the high flow event).
Elevation minimum decreased by 0.50 feet below the operating curve.
Stage 3: Reduce high flow duration by 100%. Elevation minimum decreased by 0.75 feet below
the operating curve.
Stage 4: Elevation minimum decreased by 1.0 feet below operating curve. If continuous
discharge is at Tier A reduce continuous discharge from Tier A to Tier B level.
Stage 5: Continue releasing Tier B continuous discharge through spillway gates until elevation
reaches bottom of the spillway gates (or valve).
Stage 6: Reduce continuous discharge to inflow. \
Based on actual experience, the Applicant may consult with state and federal agencies to
modify the Low Inflow Protocol. If agreement is reached with NCDENR on modifying the
protocol, the Applicant shall make a filing with FERC requesting approval of the proposed
modification and upon FERC approval will implement the modified protocol
6. The Applicant shall continue funding the existing U.S. Geological Survey (USGS)
Bearpen Gap gage (Station No. 0351706800) on the Cheoah River below Santeetlah Dam.
Additionally, the Applicant shall install and maintain a calibrated staff gage, or the equivalent, at
the Joyce Kilmer Bridge to allow for the visual confirmation of Cheoah Rivers flows. The
Applicant shall also make available the calculated release to the Cheoah River at the Santeetlah
dam on an hourly basis via the Internet.
7. Prior to the completion of the gate modifications required in Condition 8 below, the
continuous base flow release shall consist of a flow of approximately 50 cfs released through an
existing Tainter gate at Santeetlah Dam. Prior to the completion of the Tainter gate automation
required in Condition 8 below, high flow events shall be made with consideration of the
following factors:
a. Releases from November 1 through March 31 will be scheduled to occur during the
regular work week (Monday through Friday) to minimize additional personnel costs associated
with releases on weekends using the existing gates and related equipment; releases from April 1
through October 31 will occur on weekends;
-6-
b. Releases will be initiated using the "Year 1" release schedule in Table 3 and subsequent
years will use "Year 2", "Year 3" etc.;
Ramping rates will not apply;
d. The Applicant shall make reasonable effort to provide the high flow events according to
the high flow event schedule in Table 3, however some variation in terms of actual timing of
events may occur during this interim period until the gate modifications are complete.
8. To accommodate release of the aquatic base flow and high flow events, the Applicant
shall add "piggy-back" gates to, and automate, either two or three of the existing Tainter gates on
Santeetlah Dam within 24 months of the effective date of the new license. The Applicant may
deviate from the Santeetlah Operating Curve, the aquatic base and high flow releases during the
winter drawdown period to allow for construction in the field of the modified Tainter gates.
Within 90 days of the effective date of the new license, the Applicant shall file, for approval by
FERC, a plan and schedule for modifying the Tainter gates.
9. The Applicant shall operate Santeetlah Reservoir according to the following operating
rules except when operating under the Low Inflow Protocol (Condition 5):
a. From January 1 to March 1, the elevation of Santeetlah Reservoir shall not drop below
elevation 1931 ft.
b. From March 1 to April 1 the elevation of Santeetlah Reservoir shall not drop below the
line between elevation 1931 ft. on March 1 and elevation 1936 ft. on April 1.
C. From April 1 to June 23, the elevation of Santeetlah Reservoir shall not drop below
elevation 1936 ft.
d. From June 23 to July 1 the elevation of Santeetlah Reservoir shall not drop below the line
between elevation 1936 ft. on June 23 and elevation 1937 ft. on July 1.
e. From July 1 to September 8, the elevation of Santeetlah Reservoir shall not drop below
elevation 1937 ft.
f. From September 8 to September 16 the elevation of Santeetlah Reservoir shall not drop
below the line between elevation 1937 ft. on September 8 and 1936 ft. on September 16.
g. From September 16 to November 1, the elevation of Santeetlah Reservoir shall not drop
below elevation 1936 ft.
h. From November 1 to December 1 the elevation of Santeetlah Reservoir shall not drop
below the line between elevation 1936 ft. on November 1 and elevation 1931 ft. on December 1.
i. From December 1 through December 31, the reservoir elevation shall not drop below
elevation 1931-ft.
-7-
10. The Applicant shall monitor the elevation of Santeetlah Reservoir on an hourly basis
using a water level sensor located upstream of the gatehouse, on the upstream face of the intake.
The Applicant shall electronically transmit the water level data recorded by the sensor to the
dispatcher's office in Alcoa, Tennessee. The Applicant shall make available Santeetlah
Reservoir elevation data on an hourly basis via the Internet.
Based on actual experience, the Applicant may consult with interested parties on the actual water
level results at Santeetlah from the management practices implemented. The Applicant may
implement only minor adjustments of the Santeetlah Reservoir Operating Curve, and only after
such consultation and approval by the North Carolina Division of Water Quality (DWQ).
11. During emergencies and for planned project maintenance or inspection activities, the
Applicant may vary from the reservoir operating curve, vary flows below the required aquatic
base flows or lake levels, or vary from the high flow release schedule. Under such conditions,
the Applicant shall notify the NCDENR, NCWRC, USFS and USFWS in writing and via
telephone according to the following schedule. For planned project maintenance or inspection
activities, the Applicant shall notify said agencies no less than 15 days prior to the variance. For
unforeseen circumstances required by an operating emerg?ncy, the Applicant shall notify the
same agencies in writing as soon as practical, but not more than 7 days after the beginning of the
event. If requested by DWQ, the Applicant shall expeditiotisly consult with any concerned
agency to discuss the Applicant's emergency, maintenance and inspection activities, and the
Applicant shall give due regard to any agency's recommendations. In lieu of the aforesaid
requirements in this paragraph, the Applicant may develop and implement a protocol to manage
reservoir levels and flows during emergency, maintenance and inspection activities. If DWQ
determines that any recurring variances may have an adverse effect on water quality, DWQ may
require the Applicant to develop and implement a protocol to minimize the impacts of the
Applicant's emergency, maintenance and inspection activities on water quality. No protocol will
become effective without approval by DWQ. The Applicant shall take all reasonable and
necessary actions to implement any such protocol.
12. The Applicant shall identify and report in writing existing and proposed consumptive
uses to DWQ and the N.C. Division of Water Resources (DWR). The Applicant shall report the
existing or projected (as appropriate) average consumptive withdrawal and maximum capacity
for each withdrawal. The Applicant shall report existing consumptive uses to DWQ and DWR
within 60 days of the acceptance of the License and shall report proposed new or expanded
consumptive uses to DWQ and DWR within 30 days of receiving a request for the proposed new
or expanded withdrawal and before submitting any requests to FERC.
13. The Applicant shall conduct its activities in a manner consistent with State water quality
standards (including any requirements resulting from compliance with section 303(d) of the
Clean Water Act, 33 U.S.C. § 1313(d)) and any other appropriate requirements of State law and
federal law. If DWQ determines that such standards or laws are not being met (including the
failure to sustain a designated or achieved use or to comply with any new or amended water
quality standards or other appropriate requirements of State or federal law) or that State or
federal law is being violated, or that further conditions are necessary to assure compliance, DWQ
-8-
may reevaluate and modify this Certification to include conditions appropriate to assure
compliance with such standards and requirements in accordance with 15A NCAC 2H.0507(d).
Before modifying the Certification, DWQ will notify the Applicant and FERC, provide public
notice in accordance with 15A NCAC 2H.0503 and provide opportunity for public hearing in
accordance with 15A NCAC 2H.0504. Any new or revised conditions will be provided to the
Applicant in writing, will be provided to the U.S. Army Corps of Engineers for reference in any
permit issued pursuant to Section 404 of the Federal Water Pollution Control Act, 33 U.S.C. §
1344, for the project, and shall also become conditions of the License. The conditions of this
Certification are not modified or superseded by any condition or article of the License.
14. This Certification does not grant or affirm any property right, license or privilege in any
waters or any right of use in any waters. This Certification does not authorize any person to
interfere with the riparian rights, littoral rights or water use rights of any other person, and this
Certification does not create any prescriptive right or any right of priority regarding any usage of
water. No person shall interpose this Certification as a defense in any action respecting the
determination of riparian or littoral rights or other water use rights. No consumptive user is
deemed by virtue of this Certification to possess any prescriptive or other right of priority with
respect to any other consumptive user regardless of the quantity of the withdrawal or the date on
which the withdrawal was initiated or expanded. This Certification issues on the express
understanding of DENR that, pursuant to Federal Power Apt section 27, 16 U.S.C. § 821, the
License does not establish or determine a proprietary right to any use of water. It establishes the
nature of the use to which a proprietary right may be put under the Federal Power Act.
Violations of any condition herein set forth may result in revocation of this Certification
and may result in criminal and/or civil penalties or other enforcement action. This Certification
shall become null and void unless the above conditions are made conditions of the FERC Permit.
This Certification shall expire upon expiration of the FERC permit.
If this Certification is unacceptable to you, you have the right to an adjudicatory hearing
upon written request within sixty (60) days following receipt of this Certification. This request
must be in the form of a written petition conforming to Chapter 150B of the North Carolina
General Statutes and filed with the Office of Administrative Hearings, P.O. Box 27447, Raleigh,
N.C. 27611-7447. If modifications are made to an original Certification, you have the right to
an adjudicatory hearing on the modifications upon written request within sixty (60) days
following receipt of the Certification. Unless such demands are made, this Certification shall be
final and binding.
-9-

DRAFT
NORTH CAROLINA 401 WATER QUALITY CERTIFICATION
THIS CERTIFICATION is issued in conformity with the requirements of Section 401
Public Laws 92-500 and 95-217 of the United States and subject to the North Carolina Division
of Water Quality ("DWQ") Regulations in 15 NCAC 2H, Section .0500. It is issued to Alcoa
Power Generating, Inc. - Tapoco Division ("the applicant") in Graham and Swain Counties
pursuant to a revised application filed on the 19th day of February, 2003 with a revision dated
March 18, 2003 (extension to October 20, 2003) to, among other things, retain the Santeetlah and
Cheoah Dams on the Cheoah and the Little Tennessee Rivers.
The application provides adequate assurance that the retention of fill material into the
waters of the Cheoah and Little Tennessee Rivers in conjunction with retention and operation of
theses dams and other project activities will not result in a violation of applicable Water Quality
Standards, discharge guidelines and other applicable State laws. Therefore, the State of North
Carolina certifies that this activity will not violate the applicable portions of Sections 301, 302,
303, 306, 307 of PL 92-500 and PL 95-217 if conducted in accordance with the application and
conditions hereinafter set forth.
This approval is only valid for the purpose and design that you submitted in your
application, as described in the revised application. If you change your project, you must notify
us and may be required to send us a new application for a new Certification. If the property is
sold, the new owner must be given a copy of the Certification and approval letter and is thereby
responsible for complying with all conditions. For this approval to be valid, you must follow the
conditions listed below. The issuance of this Certification shall not exempt the applicant from
complying with any and all statutes, rules, regulations, or ordinances that may be imposed by
other government agencies (local, state and federal) which have jurisdiction, including but not
limited to applicable river buffer rules in 15A NCAC 2B .0200, erosion and sedimentation
control requirements in 15A NCAC Chapter 4 and under the Division's General Permit
NCGO10000, and any requirements pertaining to wetlands under 15A NCAC 2B .0200, 15A
NCAC 211.0500 and 15A NCAC 2H. 1300.
Conditions(s) of Certification:
1. The Applicant shall release aquatic base flows from Santeetlah Dam in the magnitude
and for the duration described in Table 1. The Applicant shall determine the aquatic base flow
for each month by calculating the average daily inflow (ADI) value for the preceding three
months. The Applicant shall calculate the ADI using its recorded measures of daily change in
reservoir elevation and total discharge (generation flows plus instream flow releases, high flow
event releases and flood discharge flows). If the ADI is greater than the historic 25th percentile
average flow for that month (Table 2), the Applicant shall release flows according to Tier A. If
the ADI is less than or equal to the historic 25th percentile average flow for that month, the
Applicant shall release flows according to Tier B.
Each Friday, the Applicant shall project inflow for the next ten days, which is the
"planning period." The water requirement for the planning period is the volumetric sum of base
flows; high flow event releases, if any; flood discharge flows, if any; Santeetlah Reservoir
Operating Curve increase, if any; and generation. The water available for the planning period is
the volumetric sum of storage above the Santeetlah Reservoir Operating Curve and the planning
period projected inflow. During normal operations, generation will be adjusted to maintain
Santeetlah reservoir elevations at or above the Santeetlah Reservoir Operation Curve. Except as
necessary to meet other requirement of this Certification, such as aquatic base flows and the
Santeetlah Reservoir Operating Curve, generation is not restricted for normal operations.
In order to allow state and federal agencies to complete the collection of three full years
of baseline data in the Cheoah River below Santeetlah Dam, subject to the determination of the
Federal Energy Regulatory Commission ("FERC") in issuing a new license for P-2169, the
Applicant shall release aquatic base flows starting September 1, 2005 or starting in the month
after the effective date of the License, whichever is later.
Table 1. Aquatic base flow releases from Santeetlah dam into the Cheoah River.
Flow Ra te cfs
Month Tier A Tier B
January 50 50
February 100 90
March 100 90
Aril 100 90
May 90 80
June 60 60
Jul 60 50
August 50 40
September 50 40
October 50 40
November 50 40
December 60 50
Table 2. Historic 25th percentile average flow for Cheoah River
Month Threshold Flow (cfs)
January 256
February 446
March 484
April 615
May 617
June 526
Jul 403
August 289
September 208
October 141
November 116
December 148
2. The Applicant shall provide high flow events, which follow a repeating five-year
schedule for the term of the License according to Table 3.
-2-
In order to allow state and federal agencies to collect three full years of baseline data in
the Cheoah River below Santeetlah Dam, subject to the determination of FERC in issuing a new
license for the project, the Applicant shall provide high flow events starting September 1, 2005
or in the month after the effective date of the License, whichever is later.
Table 3. High flow releases for the Cheoah River.
High Flows Year 1 Year 2 Year 3 Year 4 Year 5 Magnitude( cfs
Event
s Days Event
s Days Event
s Days Event
s Days Event
s Days Day
1 Day
2 Day
3
January
February 1 2 1 2 1 2 1 2 1 2 1000 Var
March 1 3 1 3 1 3 1 3 1 3 1000 600 300
April 2 5 3 6 2 5 2 5 3 6 1000 850 300
May 2 4 2 4 3 6 3 6 3 6 1000 850
June 1 2 1 2 1 2 1000 850
Jul 1 2 1000 850
August 1 1 1000
September 1 1 1 1 1000
October 1 1 1 1 1 1 1000
November 1 1 1 1 1 I 1 1 1 1 1000
December
Total: 10 19 10 19 10 20 10 19 10 20
' 600 cfs from hour 15 to hour 19, 400 cfs from hour 20 to hour 34; 200 cfs from hour 35 to hour 47; 100 cfs for
hour 48
2 600 cfs from hour 16 to hour 36; 300 cfs from hour 37 to hour 48
3 12:00 a.m. (midnight) shall be the starting point for determining the appropriate time for initiating and changing
flow releases
a. The Applicant shall release high flows via the Tainter gates at Santeetlah Dam. The
Applicant shall use the headwater elevation of Santeetlah Reservoir to determine the gate
opening necessary to make the required high flow release from Santeetlah Dam. The Applicant
shall use the downstream gage at Bearpen Gap during the initial system set up to confirm the
required gate positions to make the flow releases;
b. The Applicant shall schedule high flow events on weekend days (Saturday and Sunday);
schedule three day events on Saturday, Sunday and Monday;
C. The Applicant shall schedule the March event for the third weekend in March and the
November event for the first weekend in November;
d. The Applicant shall schedule one 3-day high flow event in April in years 1, 3, and 4 of
the repeating sequence;
e. The Applicant shall ramp high flow events at 2-inches per hour for flows between the
aquatic base flow and 100 cfs. The Applicant shall use the downstream gage at Bearpen Gap
during the initial system set up to confirm the required gate positions and gate frequencies in
order to ramp the high flow events;
-3-
f. For 2-day events in February, the release duration is 4 hours for day 1; releases are
targeted to begin at hour 11;
g. For 1-, 2-, and 3-day events in March through November, the release duration is 8 hours
for the day 1 high flow releases; releases on day 1 are targeted to begin at hour 8 in March, April,
October, and November, and at hour 9 in May through September;
h. For 2-day events in April through July, the release duration is also 8 hours for the day 2
high flow releases; releases on day 2 are scheduled to begin at hour 8 in April and at hour 9 in
May, June, and July;
i. For 2-day events in April through July, after the end of the 8 hours of high flow on day 1,
the flow will be reduced to 500 cfs until the beginning hour of high flow on day 2;
j. The Applicant shall schedule single day high flow events between September and
November with a minimum of 10 days between events.
k. The Applicant will provide 12 months prior notice to the U.S. Fish and Wildlife Service
(USFWS), the U.S. Forest Service (USFS), the North Carolina Wildlife Resources Commission
(NCWRC), the North Carolina Department of Environment and Natural Resources (NCDENR),
the Eastern Band of Cherokee Indians (EBCI), and Graham County of the proposed schedule of
high flow events.
3. The Applicant shall convene an annual planning meeting in early October of each year
which shall include NCDENR, NCWRC, USFS, USFWS and EBCI. If NCDENR, NCWRC,
USFS, USFWS and EBCI notify the Applicant prior to the annual meeting that they have
determined by consensus that unanticipated circumstances have arisen that indicate that
additional aquatic habitat enhancement would result from the reallocation of waste previously
committed to the aquatic base flows and/or high flow event schedule as required in Conditions 1
and 2, then the Applicant shall discuss with these entities the reallocation of water for aquatic
habitat enhancement purposes within the aquatic base flow regime and/or the high flow event
schedule for the year. The Applicant shall cooperate with NCDENR, NCWRC, USFS, USFWS,
and EBCI in implementing any requested water reallocation, with due consideration given to the
following factors.
a. Any reallocation requests shall be based on periodic (i.e. every several years) re-
evaluations of aquatic conditions in the Cheoah River by the above-listed entities;
b. Any requested reallocation shall be designed to minimize any additional lost generation
(either in lost megawatts and/or lost value) and operating costs;
C. Under no circumstances shall water allocated as part of the aquatic base flow regime be
utilized for high flow events and vice versa; nor shall water from one year be reallocated to any
other calendar year;
-4-
d. Any requested reallocation of water must be able to be accommodated with the gate
structures in existence at that time;
If agreement is reached on reallocation, the Applicant shall take all reasonable and necessary
actions to implement the agreement on reallocation. The Applicant shall make a filing with
FERC requesting the approval of the requested revised allocation of flows for that calendar year,
and upon FERC approval will implement the revised aquatic base flow regime and/or high flow
event schedule.
4. Starting in October 2010, in conjunction with the annual planning meeting required in
Condition 3 above, the Applicant will consult with USFWS, USFS, NCWRC, NCDENR, EBCI
and Graham County regarding the possibility of providing additional high flow events on a trial
basis in addition to the high flow events contemplated in the repeating five year schedule
included in Condition 2 above.
If , NCDENR notifies the Applicant that they are in full concurrence that biological
recovery in the Cheoah River has proceeded to a point that additional high flow events should be
scheduled and evaluated on a trial basis, then the Applicant will consult with USFWS, USFS,
NCWRC, NCDENR, EBCI and Graham County, to determine the specific number, magnitude
and timing of such additional trial high flow events. .
In the event that the Applicant and NCDENR agree on the provision of additional trial
high flow events, then no later than 60 days prior to the anticipated start of the additional high
flow events, the Applicant shall file for FERC approval a plan of the proposed revisions to the
repeating five year schedule of high flow events.
In conjunction with the subsequent annual planning meetings, the Applicant will consult
with the USFWS, USFS, NCWRC, NCDENR, and EBCI in order to determine whether to
terminate, continue, or modify the additional trial high flow events, or to recommend to FERC a
permanent change in the repeating five year schedule of high flow events. The determination
shall be based on USFWS, USFS, NCWRC, NCDENR, and EBCI's assessment of the effects of
the additional trial high flow events on the Cheoah River aquatic and associated riparian
biological communities, on water levels in Santeetlah Reservoir, and other water-quality related
issues.
The Applicant shall make additional filings, as appropriate, notifying FERC of any
additional requested revisions to the repeating five year schedule of high flow events, and upon
FERC approval will implement the revised high flow event schedule.
5. If inflow is not adequate to provide high flow releases and maintain required reservoir
levels while maintaining instream flows, then equitable reductions in Santeetlah Reservoir water
levels, and high flow releases to the Cheoah River will be made as follows. If the water
available for the planning period (as defined in Condition 1) is less than the water requirement
with no generation for the scheduling period the following low flow stages will be implemented.
The low flow stage will remain in effect until the next planning period when the water
requirement is compared to the water available. If the water available is less than the water
-5-
requirement, the next stage will be implemented. If the water available is greater than the water
requirement the previous stage will be implemented or normal operations if at Stage 1. If the
actual inflow is appreciably different than the projected inflow the Applicant may make
adjustments to the low flow stage during the planning period.
Stage 1: Reduce high flow duration by 25% (2 hours for each day of the high flow event).
Elevation minimum decreased by 0.25 feet below operating curve.
Stage 2: Reduce high flow duration by 50% (4 hours for each day of the high flow event).
Elevation minimum decreased by 0.50 feet below the operating curve.
Stage 3: Reduce high flow duration by 100%. Elevation minimum decreased by 0.75 feet below
the operating curve.
Stage 4: Elevation minimum decreased by 1.0 feet below operating curve. If continuous
discharge is at Tier A reduce continuous discharge from Tier A to Tier B level.
Stage 5: Continue releasing Tier B continuous discharge through spillway gates until elevation
reaches bottom of the spillway gates (or valve).
Stage 6: Reduce continuous discharge to inflow.
Based on actual experience, the Applicant may consult with state and federal agencies to
modify the Low Inflow Protocol. If agreement is reached with NCDENR on modifying the
protocol, the Applicant shall make a filing with FERC requesting approval of the proposed
modification and upon FERC approval will implement the modified protocol
6. The Applicant shall continue funding the existing U.S. Geological Survey (USGS)
Bearpen Gap gage (Station No. 0351706800) on the Cheoah River below Santeetlah Dam.
Additionally, the Applicant shall install and maintain a calibrated staff gage, or the equivalent, at
the Joyce Kilmer Bridge to allow for the visual confirmation of Cheoah Rivers flows. The
Applicant shall also make available the calculated release to the Cheoah River at the Santeetlah
dam on an hourly basis via the Internet.
7. Prior to the completion of the gate modifications required in Condition 8 below, the
continuous base flow release shall consist of a flow of approximately 50 cfs released through an
existing Tainter gate at Santeetlah Dam. Prior to the completion of the Tainter gate automation
required in Condition 8 below, high flow events shall be made with consideration of the
following factors:
a. Releases from November 1 through March 31 will be scheduled to occur during the
regular work week (Monday through Friday) to minimize additional personnel costs associated
with releases on weekends using the existing gates and related equipment; releases from April 1
through October 31 will occur on weekends;
-6-
b. Releases will be initiated using the "Year 1" release schedule in Table 3 and subsequent
years will use "Year 2", "Year 3" etc.;
Ramping rates will not apply;
d. The Applicant shall make reasonable effort to provide the high flow events according to
the high flow event schedule in Table 3, however some variation in terms of actual timing of
events may occur during this interim period until the gate modifications are complete.
8. To accommodate release of the aquatic base flow and high flow events, the Applicant
shall add "piggy-back" gates to, and automate, either two or three of the existing Tainter gates on
Santeetlah Dam within 24 months of the effective date of the new license. The Applicant may
deviate from the Santeetlah Operating Curve, the aquatic base and high flow releases during the
winter drawdown period to allow for construction in the field of the modified Tainter gates.
Within 90 days of the effective date of the new license, the Applicant shall file, for approval by
FERC, a plan and schedule for modifying the Tainter gates.
9. The Applicant shall operate Santeetlah Reservoir according to the following operating
rules except when operating under the Low Inflow Protocol (Condition 5):
a. From January 1 to March 1, the elevation of Santeetlah Reservoir shall not drop below
elevation 1931 ft.
b. From March 1 to April 1 the elevation of Santeetlah Reservoir shall not drop below the
line between elevation 1931 ft. on March 1 and elevation 1936 ft. on April 1.
C. From April 1 to June 23, the elevation of Santeetlah Reservoir shall not drop below
elevation 1936 ft.
d. From June 23 to July 1 the elevation of Santeetlah Reservoir shall not drop below the line
between elevation 1936 ft. on June 23 and elevation 1937 ft. on July 1.
e. From July 1 to September 8, the elevation of Santeetlah Reservoir shall not drop below
elevation 1937 ft.
f. From September 8 to September 16 the elevation of Santeetlah Reservoir shall not drop
below the line between elevation 1937 ft. on September 8 and 1936 ft. on September 16.
g. From September 16 to November 1, the elevation of Santeetlah Reservoir shall not drop
below elevation 1936 ft.
h. From November 1 to December 1 the elevation of Santeetlah Reservoir shall not drop
below the line between elevation 1936 ft. on November 1 and elevation 1931 ft. on December 1.
i. From December 1 through December 31, the reservoir elevation shall not drop below
elevation 1931-ft.
-7-
10. The Applicant shall monitor the elevation of Santeetlah Reservoir on an hourly basis
using a water level sensor located upstream of the gatehouse, on the upstream face of the intake.
The Applicant shall electronically transmit the water level data recorded by the sensor to the
dispatcher's office in Alcoa, Tennessee. The Applicant shall make available Santeetlah
Reservoir elevation data on an hourly basis via the Internet.
Based on actual experience, the Applicant may consult with interested parties on the actual water
level results at Santeetlah from the management practices implemented. The Applicant may
implement only minor adjustments of the Santeetlah Reservoir Operating Curve, and only after
such consultation and approval by the North Carolina Division of Water Quality (DWQ).
11. During emergencies and for planned project maintenance or inspection activities, the
Applicant may vary from the reservoir operating curve, vary flows below the required aquatic
base flows or lake levels, or vary from the high flow release schedule. Under such conditions,
the Applicant shall notify the NCDENR, NCWRC, USFS and USFWS in writing and via
telephone according to the following schedule. For planned project maintenance or inspection
activities, the Applicant shall notify said agencies no less than 15 days prior to the variance. For
unforeseen circumstances required by an operating emergency, the Applicant shall notify the
same agencies in writing as soon as practical, but not more than 7 days after the beginning of the
event. If requested by DWQ, the Applicant shall expeditiously consult with any concerned
agency to discuss the Applicant's emergency, maintenance and inspection activities, and the
Applicant shall give due regard to any agency's recommendations. In lieu of the aforesaid
requirements in this paragraph, the Applicant may develop and implement a protocol to manage
reservoir levels and flows during emergency, maintenance and inspection activities. If DWQ
determines that any recurring variances may have an adverse effect on water quality, DWQ may
require the Applicant to develop and implement a protocol to minimize the impacts of the
Applicant's emergency, maintenance and inspection activities on water quality. No protocol will
become effective without approval by DWQ. The Applicant shall take all reasonable and
necessary actions to implement any such protocol.
12. The Applicant shall identify and report in writing existing and proposed consumptive
uses to DWQ and the N.C. Division of Water Resources (DWR). The Applicant shall report the
existing or projected (as appropriate) average consumptive withdrawal and maximum capacity
for each withdrawal. The Applicant shall report existing consumptive uses to DWQ and DWR
within 60 days of the acceptance of the License and shall report proposed new or expanded
consumptive uses to DWQ and DWR within 30 days of receiving a request for the proposed new
or expanded withdrawal and before submitting any requests to FERC.
13. The Applicant shall conduct its activities in a manner consistent with State water quality
standards (including any requirements resulting from compliance with section 303(d) of the
Clean Water Act, 33 U.S.C. § 1313(d)) and any other appropriate requirements of State law and
federal law. If DWQ determines that such standards or laws are not being met (including the
failure to sustain a designated or achieved use or to comply with any new or amended water
quality standards or other appropriate requirements of State or federal law) or that State or
federal law is being violated, or that further conditions are necessary to assure compliance, DWQ
-8-
may reevaluate and modify this Certification to include conditions appropriate to assure
compliance with such standards and requirements in accordance with 15A NCAC 2H.0507(d).
Before modifying the Certification, DWQ will notify the Applicant and FERC, provide public
notice in accordance with 15A NCAC 2H.0503 and provide opportunity for public hearing in
accordance with 15A NCAC 2H.0504. Any new or revised conditions will be provided to the
Applicant in writing, will be provided to the U.S. Army Corps of Engineers for reference in any
permit issued pursuant to Section 404 of the Federal Water Pollution Control Act, 33 U.S.C. §
1344, for the project, and shall also become conditions of the License. The conditions of this
Certification are not modified or superseded by any condition or article of the License.
14. This Certification does not grant or affirm any property right, license or privilege in any
waters or any right of use in any waters. This Certification does not authorize any person to
interfere with the riparian rights, littoral rights or water use rights of any other person, and this
Certification does not create any prescriptive right or any right of priority regarding any usage of
water. No person shall interpose this Certification as a defense in any action respecting the
determination of riparian or littoral rights or other water use rights. No consumptive user is
deemed by virtue of this Certification to possess any prescriptive or other right of priority with
respect to any other consumptive user regardless of the quantity of the withdrawal or the date on
which the withdrawal was initiated or expanded. This Certification issues on the express
understanding of DENR that, pursuant to Federal Power Act section 27, 16 U.S.C. § 821, the
License does not establish or determine a proprietary right to any use of water. It establishes the
nature of the use to which a proprietary right may be put under the Federal Power Act.
Violations of any condition herein set forth may result in revocation of this Certification
and may result in criminal and/or civil penalties or other enforcement action. This Certification
shall become null and void unless the above conditions are made conditions of the FERC Permit.
This Certification shall expire upon expiration of the FERC permit.
If this Certification is unacceptable to you, you have the right to an adjudicatory hearing
upon written request within sixty (60) days following receipt of this Certification. This request
must be in the form of a written petition conforming to Chapter 150B of the North Carolina
General Statutes and filed with the Office of Administrative Hearings, P.O. Box 27447, Raleigh,
N.C. 27611-7447. If modifications are made to an original Certification, you have the right to
an adjudicatory hearing on the modifications upon written request within sixty (60) days
following receipt of the Certification. Unless such demands are made, this Certification shall be
final and binding.
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Fwd: RE: Alcoa v. DWQ, OAH # 04 EHR 256
Subject: Fwd: RE: Alcoa v. DWQ, OAH # 04 EHR 256
From: "Sueanna Sumpter" <[e-mail]>
Date: Mon, 25 Oct 2004 09:00:02 -0400
To: <[e-mail]>
ATTORNEY-CLIENT COMMUNICATION
Privileged and Not Public Record
Hi John,
I am forwarding to you a message I received from David Poe. As you will note, there is a bit more urgency
to getting the new 401 out, since FERC is now more or less in charge of the schedule. Please let me know
if the draft agreement is satisfactory and please forward to me and Steve Reed a clean copy of the amended
401.
Thanks.
Sueanna
Subject: RE: Alcoa v. DWQ, OAH # 04 EHR 256
From: "Poe, David R." <[e-mail]>
Date: Fri, 22 Oct 2004 17:06:28 -0400
To: "Sueanna Sumpter" <[e-mail]>
CC: "Kenn, D. Randall" <[e-mail]>, [e-mail]
Thank you, Sueanna. I will wait to hear from you.
However, I need to make you aware that our ALJ is no longer the only one pushing our case along. On
Monday of this week, President Bush signed into law the special legislation that enables relicensing of the
project to proceed. Although I believe the land transfers are not yet complete, nonetheless I think that
FERC now has the bit in its teeth and is hot to trot to issue the new license.
Regards,
Dave
From: Sueanna Sumpter [mailto:[e-mail]]
Sent: Fri 10/22/2004 2:38 PM
To: Poe, David R.
Subject: Alcoa v. DWQ, OAH # 04 EHR 256
I wanted to give you a status report. I drafted a very brief settlement agreement which would resolve the
contested case and sent it last week to my client for review, along with a request that he generate a clean
copy of the revised 401. I will send both documents on to you as soon as he responds.
Thanks.
1 of 2 10/28/2004 11:02 AM
Fwd: RE: Alcoa v. DWQ, OAH # 04 EHR 256
- w
Sueanna
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delete this e-mail, including attachments, and notify me. The unauthorized use, dissemination, distribution
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RE: Alcoa v. DWQ, OAH # 04 EHR 256.eml Content-Type: message/rfc822
2 of 2 10/28/2004 11:02 AM
T d S0NH113M-0Ma:3WHN 268922,L6TG:_131 9T :0T nH1 b002-82-100
?A Y
,State of NPrth Carolina
Department of Yustict
42 North French Broad Avenue Western Office
Roy COOPER Asheville, NC 28801 Phone: [phone]
A"May c3eneca? Fax: [phone]
F CSI ILE TRA SM N COVER S E T
s is confidential Information intended only for the uss not the you are
Note: The information contained In this facsimile measag
of the individual or entity named below. If the reader of this messageespy is strictly prefab ed. you have
hereby notified that any dissemination, distribution or copy t
received this telecopy in error, please Immediately notify us bytelephona and return the original message to us
at the address above via United States Pastal service. Thank you. Nl pTl N
A RNEY-CLIENT
Privileged and Not Public Record
DATE: October 28, 2004
TO: John Dorney
Supervisor, Wetlands Group
Division of Water Quality
FAX NUMBER: 919-733-6893
FROM: Sueenna P. Sumpter
Assistant Attorney General
Attorney General's Western Office
SUBJECT: Alcoa V. DENR, DAQ
OAH file no. 04 EHR 0256
401 Certification No. 3447
NUMBER OF PAGES INCLUDING COVER SHEET:
OATS:
Sueanna
LO 'd
Draft settlement agreement is attached,for your review. Thanks.
80 11 POE 8Z 130 86£9-i5Z-8Z8 xE3 301330 R N39 11V
3 J SGNU113M-0M0:3WUN 268922Z6%:731 9Z:0Z nH1 t7008-82-100
i
IN VM OFFICE OF
STATE Or WORTH CAROLINA ADNINISTPATM HEARINGS
04 ZUR 0256
COUNTY OF GRARM
Alcoa power Generating, Inc., ;
Topoao Division, )
petitioner, )
ACRE-E1[ '1'
C:0 Z MT
v. ) AND SMLMXM
NC Dept. of anviroz+ent and )
,Natural Resources, DivisiOU of
Water Quality,
Respondent. )
The petitioner, Alcoa Power Generating, TnO., Tapoco Division
(*Alcoa"), and the respondent, North Carolina Department of
Environment and Natural Resources, Division of Water Quality
(%DWQ"), hereby enter into this Consent Agreement and gettlement
("Agreement") in order to resolve matters in controversy between
them pursuant to N.C.G.S. S 150H-31(b).
This above-captioned matter arose out of the 17 December 2003
issuance by DWQ to Alcoa of Certification No. 3447, pursuant to
Section 401 of the Clean Water Act and in conjunction with a re-
licensing project before the Federal Energy Regulatory Comission
(wFERC")• DWQ's action certified that the retention of fill
material in the waters of the Cheoah and Little Tennessee Rivers in
conjunction with the retention and operation of the Santeetlah and
Cheoah Dams would not result in a violation of anplic&ble water
7,0'd 9c:[[ i700Z 8Z 130 8009-15Z-8Z8 Xe3 301330 M N39 lltl
2 '3 SaNU113M-0MG:3WUN €G89M_6T6:_131 9Z c0Z nH1 tb002-82-1D0
quality standards, if perfozrad in accordance with the terms of the
petitionerle application and the conditions of the certification.
Alcoa timely commenced the above-captioned contested case to
challenge the content of the 401 certification, contending that the
document should be amended to make it consistent with the terms of
the final,- April 2004, settlement in the gERc re-licensing
proceeding ("the rMRc settlement")- The parties subsequently
engaged in settlement negotiations in the above-styled action and
developed a draft amended 401 certification which is agreeable to
both.
Therefore, without axy.trial of fact or law in the above-
styled matter, THE PARTIES AGREE TRATI
1. within tea (10) days following full execution of this.
Agreement, the respondent, DWQ, will issue to the petitioner.
Alcoa, an amended 401 certification containing the same terms and
conditions as the draft certification developed and agreed to by
the parties. A copy of the draft is attached to this Agreemneat,
marked "Exhibit A,p and incorporated by reference herein.
2. By execution of this Agreement, Alcoa accepts and agrees
not to challenge the terms and conditions of the amended
certification to be issued pursuant to Paragraph 1, above.
3. Alcoa explicitly waives its right to a contested case
hearing in this matter. and additionally agrees to withdraw its
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60'd 86 11 V00z 8Z 130 8EE9-15Z-8Z8 xe? 331330 M N39 llb
b 'd SGNH-113M-0M0:3WUN 2689ML6T6:131 Zi:OT nHl bOO2-82-1J0
petition for contested case hearing previously fixed with the
office of Administrative Bearings in the above-captioned matter.
Petitioner shall file a notice of withdrawal Of request for
contested case bearing within ten (i0) days fclloovzng full
execution of this Agreement-
4. The intent of the parties is agreeing to amend the
subject 401 certification is to resolve any inconsistencies between
that document and the April 20OQ FLRC settlement relevant to
protection of water quality in those waters affected by the FERC
project. lgothing contained in this Agreement or the amended 401
certification to be issued hereunder shall be construed to effect
any amendment or alteration of any term or condition of the April
2004 FERC settlement.
(signatures on following page-)
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b0'd K":[[ POE 87, 100 86E9-15Z-8Z8 Xe3 371330 M N35 11U
S d SONH113M-0M0:3WHN 268922L6Z6:-131 LZ:0ti nH1 t7002-82-1O0
FOR TAE PETXTSOXERe FOR TAE RggPOA1DSIf1T:
LEHOEIIF, Lam; GREMM & ROY COOPER
WACRAE. L.Ir.P. Attorney General
Attorneys for the Petitioner
By= susaana P. Sumpter
David R. Poe Assistant Attorney General
NW, N.C. Department of Justice
1975, Connecticut Ave- 42 N. French Broad "On"e
Suits 1200 Asheville NC 28802
Washington DC 20009.
Date:
Date:
DNIBION Oa WATER QUALITY
SO'd 6E:ll 7007, 8Z 1?)O
John R. nort,eY
supervisor
401 Certification program.
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8E E9-lSZ-BZS xP? 301330 M N39 lltl
NORTH CAROLINA 401 WATER QUALITY CERTIFICATION
DWO and DWR revision dated August 27, 2004 based on the David Poe draft of Jul_yl,
2004
THIS CERTIFICATION is issued in conformity with the requirements of Section 401
Public Laws 92-500 and 95-217 of the United States and subject to the North Carolina Division
of Water Quality ("DWQ") Regulations in 15 NCAC 2H, Section .0500. It is issued to Alcoa
Power Generating, Inc. - Tapoco Division ("the applicant") in Graham and Swain Counties
pursuant to a revised application filed on the 19th day of February, 2003 with a revision dated
March 18, 2003 (extension to October 20, 2003) to, among other things, retain the Santeetlah and
Cheoah Dams on the Cheoah and the Little Tennessee Rivers.
The application provides adequate assurance that the retention of fill material into the
waters of the Cheoah and Little Tennessee Rivers in conjunction with retention and operation of
theses dams and other project activities will not result in a violation of applicable Water Quality
Standards, discharge guidelines and other applicable State laws. Therefore, the State of North
Carolina certifies that this activity will not violate the applicable portions of Sections 301, 302,
303, 306, 307 of PL 92-500 and PL 95-217 if conducted in accordance with the application and
conditions hereinafter set forth.
This approval is only valid for the purpose and design that you submitted in your
application, as described in the revised application. If you change your project, you must notify
us and may be required to send us a new application for a new Certification. If the property is
sold, the new owner must be given a copy of the Certification and approval letter and is thereby
responsible for complying with all conditions. For this approval to be valid, you must follow the
conditions listed below. The issuance of this Certification shall not exempt the applicant from
complying with any and all statutes, rules, regulations, or ordinances that may be imposed by
other government agencies (local, state and federal) which have jurisdiction, including but not
limited to applicable river buffer rules in 15A NCAC 2B .0200, erosion and sedimentation
control requirements in 15A NCAC Chapter 4 and under the Division's General Permit
NCGO10000, and any requirements pertaining to wetlands under 15A NCAC 2B .0200, 15A
NCAC 2H .0500 and 15A NCAC 2H .1300.
Conditions(s) of Certification:
1. The Applicant shall release aquatic base flows from Santeetlah Dam in the magnitude
and for the duration described in Table 1. The Applicant shall determine the aquatic base flow
for each month by calculating the average daily inflow (ADI) value for the preceding three
months. The Applicant shall calculate the ADI using its recorded measures of daily change in
reservoir elevation and total discharge (generation flows plus instream flow releases, high flow
event releases and flood discharge flows). If the ADI is greater than the historic 25th percentile
average flow for that month (Table 2), the Applicant shall release flows according to Tier A. If
the ADI is less than or equal to the historic 25th percentile average flow for that month, the
Applicant shall release flows according to Tier B. 1
o\A
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Each Friday, the Applicant shall project inflow for the next ten days, which is the
"planning period." The water requirement for the planning period is the volumetric sum of base
flows; high flow event releases, if any; flood discharge flows, if any; Santeetlah Reservoir
Operating Curve increase, if any; and generation. The water available for the planning period is
the volumetric sum of storage above the Santeetlah Reservoir Operating Curve and the planning
period projected inflow. During normal operations, generation will be adjusted to maintain
Santeetlah reservoir elevations at or above the Santeetlah Reservoir Operation Curve. Except as
necessary to meet other requirement of this Certification, such as aquatic base flows and the
Santeetlah Reservoir Operating Curve, generation is not restricted for normal operations.
In order to allow state and federal agencies to complete the collection of three full years
of baseline data in the Cheoah River below Santeetlah Dam, subject to the determination of the
Federal Energy Re. u?y Commission ("FERC") in issuing a new license for P-2169, the
Applicant shall release aquatic base flows starting September 1, 2005 or starting), in the month
after the effective date of the License whichever is later.

Table 1. Aquatic base flow releases from Santeetlah dam into the Cheoah River.
Flow Ra te cfs
Month Tier A Tier B
January 50 50
February 100 90
March 100 90
Aril 100 90
May 90 80
June 60 60
Jul 60 50
August 50 40
September 50 40
October 50 40
November 50 40
December 60 50
Table 2. Historic 25th percentile average flow for Cheoah River
Month Threshold Flow (cfs)
January 256
February 446
March 484
April 615
May 617
June 526
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Jul 403
August 289
September 208
October 141
November 116
December 148
2. The Applicant shall provide high flow events, which follow a repeating five-year
schedule for the term of the License according to Table 3.
In order to allow state and federal agencies to collect three full years of baseline data in
the Cheoah River below Santeetlah Dam, subject to the determination of FERC in issuing
license for the project, the Applicant shall provide high flow events starting September 1, 2005
or in the month after the effective date of the License, whichever is later.
Lieense after September 1, 2005.i 1
Table 3. High flow releases for the Cheoah River.
High Flows Year 1 Year 2 Year 3 Year 4 Year 5 Ma nitude cfs
Event
s Days Event
s Days Event
s Days Event
s Days Event
s Days Day
1 Day
2 Day
3
January
February 1 2 1 2 1 2 1 2 1 2 1000 Var
March 1 3 1 3 1 3 1 3 1 3 1000 600 300
April 2 5 3 6 2 5 2 5 3 6 1000 850 300
May 2 4 2 4 3 6 3 6 3 6 1000 850
June 1 2 1 2 1 2 1000 850
Jul 1 2 1000 850
August 1 1 1000
September 1 1 1 1 1000
October 1 1 1 1 1 1 1000
November 1 1 1 1 1 1 1 1 1 1 1000
December
Total: 10 19 10 19 10 20 10 19 10 20
' 600 cfs from hour 15 to hour 19, 400 cfs from hour 20 to hour 34; 200 cfs from hour 35 to hour 47; 100 cfs for
hour 48
2 600 cfs from hour 16 to hour 36; 300 cfs from hour 37 to hour 48
3 12:00 a.m. (midnight) shall be the starting point for determining the appropriate time for initiating and changing
flow releases
a. The Applicant shall release high flows via the Tainter gates at Santeetlah Dam. The
Applicant shall use the headwater elevation of Santeetlah Reservoir to determine the gate
opening necessary to make the required high flow release from Santeetlah Dam. The Applicant
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shall use the downstream gage at Bearpen Gap during the initial system set up to confirm the
required gate positions to make the flow releases;
b. The Applicant shall schedule high flow events on weekend days (Saturday and Sunday);
schedule three day events on Saturday, Sunday and Monday;
C. The Applicant shall schedule the March event for the third weekend in March and the
November event for the first weekend in November;
d. The Applicant shall schedule one 3-day high flow event in April in years 1, 3, and 4 of
the repeating sequence;
C. The Applicant shall ramp high flow events at 2-inches per hour for flows between the
aquatic base flow and 100 cfs. The Applicant shall use the downstream gage at Bearpen Gap
during the initial system set up to confirm the required gate positions and gate frequencies in
order to ramp the high flow events;
f. For 2-day events in February, the release duration is 4 hours for day 1; releases are
targeted to begin at hour 11;
g. For 1-, 2-, and 3-day events in March through November, the release duration is 8 hours
for the day 1 high flow releases; releases on day 1 are targeted to begin at hour 8 in March, April,
October, and November, and at hour 9 in May through September;
h. For 2-day events in April through July, the release duration is also 8 hours for the day 2
high flow releases; releases on day 2 are scheduled to begin at hour 8 in April and at hour 9 in
May, June, and July;
i. For 2-day events in April through July, after the end of the 8 hours of high flow on day 1,
the flow will be reduced to 500 cfs until the beginning hour of high flow on day 2;
j. The Applicant shall schedule single day high flow events between September and
November with a minimum of 10 days between events.
k. The Applicant will provide 12 months prior notice to the U.S. Fish and Wildlife Service
JUSFWS), the U.S. Forest Service (USFS), the North Carolina Wildlife Resources Commission
(NCWRQ, the North Carolina Department of Environment and Natural Resources (NCDENR),
the Eastern Band of Cherokee Indians (EBCIj, and Graham County of the proposed schedule of
high flow events.
3. The Applicant shall convene an annual planning meeting in early October of each year
which shall include NCDENR3, tie
Not-th Carolina Wildlife Re ^ s r,,,,,miss;^„'NCWRC), the U.S. For-es! Ser-viee USFS3, t-14e
tic Fish an Wildt:f; Sefviee (USFWS) and the Faste ' nand ofChel-Al,oo Indians EI30). If
14e NCDENR, NCWRC, USFS, USFWS and EBCI notify the Applicant prior to the annual
meeting that they have determined by consensus that unanticipated circumstances have arisen
-4-
that indicate that additional aquatic habitat enhancement would result from the reallocation of
waste previously committed to the aquatic base flows and/or high flow event schedule as
required in Conditions 1 and 2, then the Applicant shall discuss with these entities the
reallocation of water for aquatic habitat enhancement purposes within the aquatic base flow
regime and/or the high flow event schedule for the year. The Applicant shall cooperate with-t#e
NCDENR, NCWRC, USFS, USFWS, and EBCI in implementing any requested water
reallocation, with due consideration given to the following factors.
a. Any reallocation requests shall be based on periodic (i.e. every several years) re-
evaluations of aquatic conditions in the Cheoah River by the above-listed entities;
b. Any requested reallocation shall be designed to minimize any additional lost generation
(either in lost megawatts and/or lost value) and operating costs;
C. Under no circumstances shall water allocated as part of the aquatic base flow regime be
utilized for high flow events and vice versa; nor shall water from one year be reallocated to any
other calendar year;
d. Any requested reallocation of water must be able to be accommodated with the gate
structures in existence at that time;
If agreement is reached on reallocation, the Applicant shall take all reasonable and necessary
actions to implement the agreement on reallocation. The Applicant shall make a filing with
FERCthe Commis requesting the approval of the requested revised allocation of flows for
that calendar year, and upon FERCCemn}issien approval will implement the revised aquatic base
flow regime and/or high flow event schedule.
4. Starting in October 2010, in conjunction with the annual planning meeting required in
Condition 3 above, the Applicant will consult with the U.S. Fish and Wildlife So vie 4USFWS),
the U.S. FeFest SeFN,iee (USFS), the NaAh Car-al;,,,, Wildlife Reseui-ees r,,,,,,,,;ssion (NCWRC),
the Nai4h Car-olin., nepai- meat of gn iron ent ,,,,d NAt,,,-^l Reseu,-ees iNCDENR), the
Band of Cherokee 1ndi +s4EBCI-)-, and Graham County regarding the possibility of pr-eviding
providing additional high flow events n a trial basis in addition _fbir ;.A,'h4AAA1Ater- beating par-poses to the high flow events contemplated in the repeating five year schedule included in Condition 2
above.
If the r TSFWS, USFS, `TPA , NCDENR,Ra„-1'I 1-RD notifyies the Applicant that they
are in full concurrence that biological recovery in the Cheoah River has proceeded to a point that
additional high flow events should be scheduled and evaluated on a trial basis, then the Applicant
will consult with USFWS, USFS, NCWRC, NCDENR, EBCI and Graham County, to determine
the specific number, magnitude and timing of such additional trial high flow events. q'he
Applie.ant will pr-evide the additional high flow events upen FERCConin i i - va! a-ad i
ineur+ed as a r-esult of the additional high Pew events, (ii) the requesting entity has agreed to and
cheaah River- asseeiated 1"11- 1,--- eVall-l-AtkAM. Reff-the biE)1E)giea! effeetS E)f the adEJitiE)JJa1 high flO-A'
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In the event that the Applicant and, t> WS tm>rc, NC-V W, NCDENR, >r>a-?
agree on the provision of additional trial high flow events, then no later than 60
days prior to the anticipated start of the additional high flow events, the Applicant shall file for
FERC approval a plan of the proposed revisions to the repeating five year schedule
of high flow events.
In conjunction with the subsequent annual planning meetings, the Applicant will consult
with the USFWS, USFS, NCWRC, NCDENR, and EBCI in order to determine whether to
terminate, continue, or modify the additional trial high flow events, or to recommend to FERC a
permanent change in the repeating five year schedule of high flow events. The determination
shall be based on USFWS, USFS, NCWRC, NCDENR, and EBCI's assessment of the effects of
the additional trial high flow events on the Cheoah River aquatic and associated riparian
biological communities, en ether-- rneer--eatienal uses of the Cheeah , on water levels in
Santeetlah Reservoir, and other water-Quality related issues.
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The Applicant shall make additional filings, as appropriate, notifying FER04e
won of any additional requested revisions to the repeating five year schedule of high
flow events, and upon FERCC-otuniissien approval will implement the revised high flow event
schedule.
5. If inflow is not adequate to provide high flow releases and maintain required reservoir
levels while maintaining instream flows, then equitable reductions in Santeetlah Reservoir water
levels, and high flow releases to the Cheoah River will be made as follows. If the water
available for the planning period (as defined in Condition 1) is less than the water requirement
with no generation for the scheduling period the following low flow stages will be implemented.
The low flow stage will remain in effect until the next planning period when the water
requirement is compared to the water available. If the water available is less than the water
requirement, the next stage will be implemented. If the water available is greater than the water
requirement the previous stage will be implemented or normal operations if at Stage 1. If the
actual inflow is appreciably different than the projected inflow the Applicant may make
adjustments to the low flow stage during the planning period.
Stage 1: Reduce high flow duration by 25% (2 hours for each day of the high flow event).
Elevation minimum decreased by 0.25 feet below operating curve.
Stage 2: Reduce high flow duration by 50% (4 hours for each day of the high flow event).
Elevation minimum decreased by 0.50 feet below the operating curve.
-6-
Stage 3: Reduce high flow duration by 100%. Elevation minimum decreased by 0.75 feet below
the operating curve.
Stage 4: Elevation minimum decreased by 1.0 feet below operating curve. If continuous
discharge is at Tier A reduce continuous discharge from Tier A to Tier B level.
Stage 5: Continue releasing Tier B continuous discharge through spillway gates until elevation
reaches bottom of the spillway gates (or valve).
Stage 6: Reduce continuous discharge to inflow.
Based on actual experience, the Applicant may consult with state and federal agencies to
modify the Low Inflow Protocol. If agreement is reached with NCDENR on modifying the
protocol, the Applicant shall make a filing with FERCthe Commis requesting approval of the
proposed modification and upon FERCC-emmissi will implement the modified
protocol
6. The Applicant shall continue funding the existing U.S. Geological Survey (USGS)
Bearpen Gap gage (Station No. 0351706800) on the Cheoah River below Santeetlah Dam.
Additionally, the Applicant shall install and maintain a calibrated staff gage, or the equivalent, at
the Joyce Kilmer Bridge to allow for the visual confirmation of Cheoah Rivers flows. The
Applicant shall also make available the calculated release to the Cheoah River at the Santeetlah
dam on an hourly basis via the Internet.
7. Prior to the completion of the gate modifications required in Condition 8 below, the
continuous base flow release shall consist of a flow of approximately 50 cfs released through an
existing Tainter gate at Santeetlah Dam. Prior to the completion of the Tainter gate automation
required in Condition 8 below, high flow events shall be made with consideration of the
following factors:
a. Releases from November 1 through March 31 will be scheduled to occur during the
regular work week (Monday through Friday) to minimize additional personnel costs associated
with releases on weekends using the existing gates and related equipment; releases from April
through October 31 will occur on weekends;
b. Releases will be initiated using the "Year 1" release schedule in Table 3 and subsequent
years will use "Year 2", "Year 3" etc.;
C. Ramping rates will not apply;
d. The Applicant shall make reasonable effort to provide the high flow events according to
the high flow event schedule in Table 3, however some variation in terms of actual timing of
events may occur during this interim period until the gate modifications are complete.
-7-
8. To accommodate release of the aquatic base flow and high flow events, the Applicant
shall add "piggy-back" gates to, and automate, either two or three of the existing Tainter gates on
Santeetlah Dam within 24 months of the effective date of the new 4-,- icense. The Applicant
may deviate from the Santeetlah Operating Curve, the aquatic base and high flow releases during
the winter drawdown period to allow for construction in the field of the modified Tainter gates.
Within 90 days of the effective date of the new 1 -1?icense, the Applicant shall file, for approval
by FERC , a plan and schedule for modifying the Tainter gates.
9. The Applicant shall operate Santeetlah Reservoir according to the following operating
rules except when operating under the Low Inflow Protocol (Condition 5):
a. From January 1 to March 1, the elevation of Santeetlah Reservoir shall not drop below
elevation 1931 ft.
b. From March 1 to April 1 the elevation of Santeetlah Reservoir shall not drop below the
line between elevation 1931 ft. on March 1 and elevation 1936 ft. on April 1.
C. From April 1 to June 23, the elevation of Santeetlah Reservoir shall not drop below
elevation 1936 ft.
d. From June 23 to July 1 the elevation of Santeetlah Reservoir shall not drop below the line
between elevation 1936 ft. on June 23 and elevation 1937 ft. on July 1.
e. From July 1 to September 8, the elevation of Santeetlah Reservoir shall not drop below
elevation 1937 ft.
f. From September 8 to September 16 the elevation of Santeetlah Reservoir shall not drop
below the line between elevation 1937 fl. on September 8 and 1936 ft. on September 16.
g. From September 16 to November 1, the elevation of Santeetlah Reservoir shall not drop
below elevation 1936 ft.
h. From November 1 to December 1 the elevation of Santeetlah Reservoir shall not drop
below the line between elevation 1936 ft. on November 1 and elevation 1931 ft. on December 1.
i. From December 1 through December 31, the reservoir elevation shall not drop below
elevation 1931-ft.
10. The Applicant shall monitor the elevation of Santeetlah Reservoir on an hourly basis
using a water level sensor located upstream of the gatehouse, on the upstream face of the intake.
The Applicant shall electronically transmit the water level data recorded by the sensor to the
dispatcher's office in Alcoa, Tennessee. The Applicant shall make available Santeetlah
Reservoir elevation data on an hourly basis via the Internet.
Based on actual experience, the Applicant may consult with interested parties on the actual water
level results at Santeetlah from the management practices implemented. The Applicant may
-8-
implement only minor adjustments of the Santeetlah Reservoir Operating Curve, and only after
such consultation and approval by the North Carolina Division of Water Quality (DWQ).
11. During emergencies and for planned project maintenance or inspection activities, the
Applicant may vary from the reservoir operating curve, vary flows below the required aquatic
base flows or lake levels, or vary from the high flow release schedule. Under such conditions,
the Applicant shall notify the NCDENR, NCWRC, USFS and USFWS in writing and via
telephone according to the following schedule. For planned project maintenance or inspection
activities, the Applicant shall notify said agencies no less than 15 days prior to the variance. For
unforeseen circumstances required by an operating emergency, the Applicant shall notify the
same agencies in writing as soon as practical, but not more than 7 days after the beginning of the
event. If requested by DWQ, the Applicant shall expeditiously consult with any concerned
agency to discuss the Applicant's emergency, maintenance and inspection activities, and the
Applicant shall give due regard to any agency's recommendations. In lieu of the aforesaid
requirements in this paragraph, the Applicant may develop and implement a protocol to manage
reservoir levels and flows during emergency, maintenance and inspection activities. If DWQ
determines that any recurring variances may have an adverse effect on water quality, DWQ may
require the Applicant to develop and implement a protocol to minimize the impacts of the
Applicant's emergency, maintenance and inspection activities on water quality. No protocol will
become effective without approval by DWQ. The Applicant shall take all reasonable and
necessary actions to implement any such protocol.
12. The Applicant shall identify and report in writing existing and proposed consumptive
uses to DWQ and the N.C. Division of Water Resources (DWR). The Applicant shall report the
existing or projected (as appropriate) average consumptive withdrawal and maximum capacity
for each withdrawal. The Applicant shall report existing consumptive uses to DWQ and DWR
within 60 days of the acceptance of the License and shall report proposed new or expanded
consumptive uses to DWQ and DWR within 30 days of receiving a request for the proposed new
or expanded withdrawal and before submitting any requests to FERC.
13. The Applicant shall conduct its activities in a manner consistent with State water quality
standards (including any requirements resulting from compliance with section 303(d) of the
Clean Water Act, 33 U.S.C. § 1313(d)) and any other appropriate requirements of State law and
federal law. If DWQ determines that such standards or laws are not being met (including the
failure to sustain a designated or achieved use or to comply with any new or amended water
quality standards or other appropriate requirements of State or federal law) or that State or
federal law is being violated, or that further conditions are necessary to assure compliance, DWQ
may reevaluate and modify this Certification to include conditions appropriate to assure
compliance with such standards and requirements in accordance with 15A NCAC 2H.0507(d).
Before modifying the Certification, DWQ will notify the Applicant and FERC, provide public
notice in accordance with 15A NCAC 211.0503 and provide opportunity for public hearing in
accordance with 15A NCAC 2H.0504. Any new or revised conditions will be provided to the
Applicant in writing, will be provided to the U.S. Army Corps of Engineers for reference in any
permit issued pursuant to Section 404 of the Federal Water Pollution Control Act, 33 U.S.C. §
1344, for the project, and shall also become conditions of the License. The conditions of this
Certification are not modified or superseded by any condition or article of the License.
-9-
14. This Certification does not grant or affirm any property right, license or privilege in any
waters or any right of use in any waters. This Certification does not authorize any person to
interfere with the riparian rights, littoral rights or water use rights of any other person, and this
Certification does not create any prescriptive right or any right of priority regarding any usage of
water. No person shall interpose this Certification as a defense in any action respecting the
determination of riparian or littoral rights or other water use rights. No consumptive user is
deemed by virtue of this Certification to possess any prescriptive or other right of priority with
respect to any other consumptive user regardless of the quantity of the withdrawal or the date on
which the withdrawal was initiated or expanded. This Certification issues on the express
understanding of DENR that, pursuant to Federal Power Act section 27, 16 U.S.C. § 821, the
License does not establish or determine a proprietary right to any use of water. It establishes the
nature of the use to which a proprietary right may be put under the Federal Power Act.
Violations of any condition herein set forth may result in revocation of this Certification
and may result in criminal and/or civil penalties or other enforcement action. This Certification
shall become null and void unless the above conditions are made conditions of the FERC Permit.
This Certification shall expire upon expiration of the FERC permit.
If this Certification is unacceptable to you, you have the right to an adjudicatory hearing
upon written request within sixty (60) days following receipt of this Certification. This request
must be in the form of a written petition conforming to Chapter 150B of the North Carolina
General Statutes and filed with the Office of Administrative Hearings, P.O. Box 27447, Raleigh,
N.C. 27611-7447. If modifications are made to an original Certification, you have the right to
an adjudicatory hearing on the modifications upon written request within sixty (60) days
following receipt of the Certification. Unless such demands are made, this Certification shall be
final and binding.
-10-
imap://[e-mail]:143/fe...
Subject: Fwd: Your draft Motion for Continuance
From: "Sueanna Sumpter" <[e-mail]>
Date: Thu, 01 Jul 2004 08:54:37 -0400
To: <[e-mail]>, <[e-mail]>
FYI
Sueanna:
Your draft looks fine in its present form, but perhaps it might be more persuasive to note that both DENR
and DWQ are among the signatory parties supporting settlement at FERC. In other words, by executing
the settlement documents, the agencies have agreed in principle that the certificate needs to be amended
and the only issue relates to the mechanics of bringing that about.
Regardless of whether you change your draft to make the point suggested above, by this email I authorize
you to represent that I concur in the motion for continuance.
In addition, I attach for review by you and your clients two documents indicating our suggestion as to how
the existing Section 401 certificate might be amended to be consistent with the settlement. One copy is
clean and the other version has been blacklined against the original certificate so that you can more easily
track the suggested changes. We can talk after you and your clients have had an opportunity to review.
Thanks.
Dave
David R. Poe
LeBoeuf, Lamb, Greene & MacRae
1875 Connecticut Ave NW
Washington D.C. 20009-5728
202-986-8039
[e-mail]
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C\ r
q
1 of 1 \ 7/8/04 3:?
NORTH CAROLINA 401 WATER QUALITY CERTIFICATION
THIS CERTIFICATION is issued in conformity with the requirements of Section 401
Public Laws 92-500 and 95-217 of the United States and subject to the North Carolina Division
of Water Quality ("DWQ") Regulations in 15 NCAC 2H, Section .0500. It is issued-te to Alcoa
Power Generating, Inc. - Tapoco Division ("the applicant") in Graham and Swain Counties
pursuant to a revised application filed on the 19th day of February, 2003 with a revision dated
March 18, 2003 (extension to October 20, 2003) to, among other things, retain the Santeetlah and
Cheoah Dams on the Cheoah and the Little Tennessee Rivers.
The application provides adequate assurance that the retention of fill material into the
waters of the Cheoah and Little Tennessee Rivers in conjunction with retention and operation of
theses dams and other project activities will not result in a violation of applicable Water Quality
Standards, discharge guidelines and other applicable State laws. Therefore, the State of North
Carolina certifies that this activity will not violate the applicable portions of Sections 301, 302,
303, 306, 307 of PL 92-500 and PL 95-217 if conducted in accordance with the application and
conditions hereinafter set forth.
This approval is only valid for the purpose and design that you submitted in your
application, as described in the revised application. If you change your project, you must notify
us and may be required to send us a new application for a new Certification. If the property is
sold, the new owner must be given a copy of the Certification and approval letter and is thereby
responsible for complying with all conditions. For this approval to be valid, you must follow the
conditions listed below. The issuance of this Certification shall not exempt the applicant from
complying with any and all statutes, rules, regulations, or ordinances that may be imposed by
other government agencies (local, state and federal) which have jurisdiction, including but not
limited to applicable river buffer rules in 15A NCAC 2B .0200, erosion and sedimentation
control requirements in 15A NCAC Chapter 4 and under the Division's General Permit
NCGO10000, and any requirements pertaining to wetlands under 15A NCAC 2B .0200, 15A
NCAC 21-1.0500 and 15A NCAC 21-1.1300.
Conditions(s) of Certification:
1. The Applicant shall release aquatic base flows from Santeetlah Dam in the magnitude
and for the duration described in Table 1. The Applicant shall determine the aquatic base flow
for each month by calculating the average daily inflow (ADI) value for the preceding three
months. The Applicant shall calculate the ADI using its recorded measures of daily change in
reservoir elevation and total discharge (generation flows plus instream flow releases, high flow
Of-
event releases and flood discharge flows). €tf the ADI is greater than the historic 25th percentile
average flow for that month (Table 2), the Applicant shall release flows according to Tier A. If
the ADI is less than or equal to the historic 25th percentile average flow for that month, the
Applicant shall release flows according to Tier B.
Each Friday, the Applicant shall project inflow for the next ten days, which is the
"planning period." The water requirement for the planning period is the volumetric sum of base
flows; high flow event releases, if any; flood discharge flows, if any; Santeetlah Reservoir
Operating Curve increase, if any; and generation. The water available for the planning period is
the volumetric sum of storage above the Santeetlah Reservoir Operating Curve and the planning
period projected inflow. During normal operations, generation will be adjusted to maintain
Santeetlah reservoir elevations at or above the Santeetlah Reservoir Operation Curve. Except as
necessary to meet other requirement of this Certification, such as aquatic base flows and the
Santeetlah Reservoir Operating Curve, generation is not restricted for normal operations.
In order to allow state and federal agencies to complete the collection of three full
years of baseline data in the Cheoah River below Santeetlah Dam, subiect to the
determination of the Federal Energy Regulatory Commission ("FERC") in issuing a new
license for P-2169, the Applicant shall release aquatic base flows starting September 1.
005 or starting in the month after the effective date of the License, whichever is later.
Table 1. Aquatic base flow releases from Santeetlah dam into the Cheoah River.
Flow Rate (cfs)
Month Tier A Tier B
January 50 50
February 100 90
March 100 90
Aril 100 90
May 90 80
June 60 60
Jul 60 50
August 50 40
September 50 40
October 50 40
November 50 40
December 60 50
Table 2. Historic 25th percentile average flow for Cheoah River
Month Threshold Flow (cfs)
January 256
February 446
March 484
April 615
May 617
June 526
Jul 403
August 289
September 208
October 141
November 116
December 148
2. The Applicant shall provide high flow events, which follow a repeating five-year
schedule for the term of the License according to Table 3.
-2-
In order to allow state and federal agencies to collect three full years of baseline
data in the Cheoah River below Santeetlah Dam, subject to the determination of FERC in 0-
suing a new license for the project, the Applicant shall provide high flow events startins?
September 1, 2005 or in the month after the effective date of the License, whichever is later.
Table 3. High flow releases for the Cheoah River.
High Flows Year 1 Year 2 Year 3 Year 4 Year 5 Magnitude( fs)4
Event
s Days Event
s Days Event
s Days Event
s Days Event
s Days Day
1 Day
2 Day
3
January
February 1 2 1 2 1 2 1 2 1 2 1000 Var
March 1 3 1 3 1 3 1 3 1 3 1000 600 300
April 2 5 3 6 2 5 2 5 3 6 1000 850 300
May 2 4 2 4 3 6 3 6 3 6 1000 850
June 1 2 1 2 1 2 1000 850
Jul 1 2 1000 850
August 1 1 1000
September 1 1 1 1 1000
October 1 1 1 1 1 1 1000
November 1 1 1 1 1 1 1 1 1 1 1000
December
Total: 10 19 10 19 10 20 10 19 10 20
600 cfs from hour 15 to hour 19, 400 cfs from hour 20 to hour 34; 200 cfs from hour 35 to hour 47; 100 cfs for
hour 48
2 600 cfs from hour 16 to hour 36; 300 cfs from hour 37 to hour 48
s 12*00 a.m. (m*dn*ght) shall be the starfing point or determining the appropriate time for initiating an
chang*ng flow releases
a. The Applicant shall release high flows via the Tainter gates at Santeetlah Dam. The
Applicant shall use the headwater elevation of Santeetlah Reservoir to determine the gate
opening necessary to make the required high flow release from Santeetlah Dam. The Applicant
shall use the downstream gage at Bearpen Gap during the initial system set up to confirm the
required gate positions to make the flow releases;
b. The Applicant shall schedule high flow events on weekend days (Saturday and Sunday);
schedule three day events on Saturday, Sunday and Monday;
C. The Applicant shall schedule the March event for the third weekend in March and the
November event for the first weekend in November;
d. The Applicant shall schedule one 3-day high flow event in April in years 1, 3, and 4 of
the repeating sequence;
e. The Applicant shall ramp high flow events at 2-inches per hour for flows between the
aquatic base flow and 100 cfs. The Applicant shall use the downstream gage at Bearpen Gap
during the initial system set up to confirm the required gate positions and gate frequencies in
order to ramp the high flow events;
-3-
f. For 2-day events in February, the release duration is 4 hours for day 1; releases are
targeted to begin at hour 11;
g. For 1-, 2-, and 3-day events in March through November, the release duration is 8 hours
for the day 1 high flow releases; releases on day 1 are targeted to begin at hour 8 in March, April,
October, and November, and at hour 9 in May through September;
h. For 2-day events in April through July, the release duration is also 8 hours for the day 2
high flow releases; releases on day 2 are scheduled to begin at hour 8 in April and at hour 9 in
May, June, and July;
i. For 2-day events in April through July, after the end of the 8 hours of high flow on day 1,
the flow will be reduced to 500 cfs until the beginning hour of high flow on day 2;
j. The Applicant shall schedule single day high flow events between September and
November with a minimum of 10 days between events.
k. The Applicant will provide 12 months prior notice to the U.S. Fish and Wildlife
Service (USFWS), the U.S. Forest Service (USFS), the North Carolina Wildlife Resources eke
Commission (NCWRC), the North Carolina Department of Environment and Natural
Resources (NCDENR), the Eastern Band of Cherokee Indians (EBCI), and Graham
County of the proposed schedule of high flow events.
3. The Applicant shall convene an annual planning m kng in early October of each year
which shall include , the
Nefth Carolina Wildlife Resear-ees Commission (NGWRG), the U.S. Forest Serwiee (U'Sps), th
U.S. F:st, and xxriai:fo co..,; o (rrc Wc)NCDENR, NCWRC, USFS, USFWS and the m
Band of Cherokee 1ndians 'BBC13. If the-NCDENR, NCWRC, USFS, USFWS and 9BEI notify 97
the Applicant prior to the annual meeting that they have determined by consensus that
unanticipated circumstances have arisen that indicate that additional aquatic habitat enhancement
would result from the reallocation of waste previously committed to the aquatic base flows
and/or high flow event schedule as required in Conditions 1 and 2, then the Applicant shall
discuss with these entities the reallocation of water for aquatic habitat enhancement purposes
within the aquatic base flow regime and/or the high flow event schedule for the year. The
Applicant shall cooperate with4he NCDENR, NCWRC, USFS, USFWS, and EBCI in
implementing any requested water reallocation, with due consideration given to the following
factors.
a. Any reallocation requests shall be based on periodic (i.e. every several years) re-
evaluations of aquatic conditions in the Cheoah River by the above-listed entities;
b. Any requested reallocation shall be designed to minimize any additional lost generation
(either in lost megawatts and/or lost value) and operating costs;
-4-
C. Under no circumstances shall water allocated as part of the aquatic base flow regime be
utilized for high flow events and vice versa; nor shall water from one year be reallocated to any
other calendar year;
d. Any requested reallocation of water must be able to be accommodated with the gate
structures in existence at that time;
If agreement is reached on reallocation, the Applicant shall take all reasonable and necessary
actions to implement the agreement on reallocation- The Applicant shall make a flling wit
FERC requesting the approval of the requested revised allocation of flows for that calendar
a 06`
' 4.
40 nk
UIL-
;eS 1? "
I . NCDENR. mrtZMA notifxthe Applicant that they aye
in full concurrence that biological recovery in the Cheoah River has proceeded to a point
that additional high flow events should be scheduled and evaluated on a trial basis. then the
Applicant will consult with USFWS, USFS, NCWRC, NCDENR, EBCI and Graham
In conjun ction with the subsequent annual planning meetings, the Applicant will
consult with the USFWS, USFS, NCWRC, NCDENR, and EBCI in order to determine
whether to term inate, continue, or modify the additional trial high flow events, or to
recommend to F ERC a permanent change in the repeating five Year schedule of high flow
events. The dete rmination shall be based on USFWS, USFS, NCWRC, NCDENR.nd
EBCI's assessme nt of the effects of the additional trial high flow events on the Cheoah
-5-
V? w a6 -

events.
The Applicant shall make additional filings, as appropriate, notifying FERC of any
additional requested revisions to the repeating flye a of high flow events, and
upon FERC approval will implement the revised high flow event schedule.
\?51
-6-
protocol, the Applicant shall make afiling with FERC requesting approval of the pron_ osed
modification and upon FERC approval will implement the modified protocol
6. The Applicant shall continue funding the existing U.S. Geological Survey (USGS)
Bearpen Gap gage (Station No. 0351706800) on the Cheoah River below Santeetlah Dam.
Additionally, the Applicant shall install and maintain a calibrated staff gage, or the equivalent, at
the Joyce Kilmer Bridge to allow for the visual confirmation of Cheoah Rivers flows. The
Applicant shall also make available the calculated release to the Cheoah River at the Santeetlah
dam on an hourly basis via the Internet.
Releases from November 1 through March 31 will be scheduled to occur durin_E_ the
regular work week and through Friday) to minimize additional personnel costs
associated with releases on weekends using the existing gates and related equipment:
releases from April 1 through October 31 will occur on weekends:
b. Releases will be initiated using the "Year 1" release schedule in Table 3 and
subsequent years will use "Year 2". "Year 3" etc.:
-5:2t The Applicant shall operate Santeetlah Reservoir according to the following operating
rules except when operating under the Low Inflow Protocol (Condition 75):
a. From January 1 to March 1, the elevation of Santeetlah Reservoir shall not drop below
elevation 1931 ft.
-7-
b. From March 1 to April 1 the elevation of Santeetlah Reservoir shall not drop below the
line between elevation 1931 ft. on March 1 and elevation 1936 ft= on April 1.
C. From April 1 to June 23, the elevation of Santeetlah Reservoir shall not drop below
elevation 1936 ft.
d. From June 23 to July 1 the elevation of Santeetlah Reservoir shall not drop below the line
between elevation 1936 ft. on June 23 and elevation 1937 ft. on July 1.
e. From July 1 to September 8, the elevation of Santeetlah Reservoir shall not drop below
elevation 1937 ft.
f. From September 8 to September 16 the elevation of Santeetlah Reservoir shall not drop
below the line between elevation 1937 ft. on September 8 and 1936 ft. on September 16.
g. From September 16 to November 1, the elevation of Santeetlah Reservoir shall not drop
below elevation 1936 ft.
h. From November 1 to December 1 the elevation of Santeetlah Reservoir shall not drop
below the line between elevation 1936 ft. on November 1 and elevation 1931 ft. on December 1.
From December 1 through December 31, the reservoir elevation shall not drop below
elevation 1931-ft.
64% The Applicant shall monitor the elevation of Santeetlah Reservoir on an hourly basis
using a water level sensor located upstream of the gatehouse, on the upstream face of the intake.
The Applicant shall electronically transmit the water level data recorded by the sensor to the
dispatcher's office in Alcoa, Tennessee. The Applicant shall make available Santeetlah
Reservoir elevation data on an hourly basis via the Internet.
Based on actual experience, the Applicant may consult with interested parties on the actual water
level results at Santeetlah from the management practices implemented. The Applicant may
implement only minor adjustments of the Santeetlah Reservoir Operating Curve, and only after
such consultation and approval by the North Carolina Division of Water Quality (DWQ).
7. The Appheant shall work with the PaFties to the Agreefnent in Pr-ineiple Regardiffg
Pr-ejeet Operations, Land Pr-oteetion and Funding of Reseur-ee Meastwes in N014h Car-Olin
Related to a New FERG Lieense for- the Tapeee Pr-qjeet (AIP), dated 8 September- 2003-,to
develop a Low inflew Pr-eteeel (LIP) for- approval by DWQ within 6 months of meeptanee b?,
the Appheant of the hieense. if the water- available for- any planning period (see Condition 1) is
less than the water- mquirementwith no gener-ation for- the planning period, then the Apphean
shall implement meastifes aeeer-ding to the LIP. Based on implementing the ,
the Appheant may consult with state and federal ageneies to pfepese medifieations to the LEP.,
Ne medifieation shall become effeetive without written approval by PM4Q-.
-8-
8-.11: During emergencies and for planned project maintenance or inspection activities, the
Applicant may vary from the reservoir operating curve, vary flows below the required aquatic
base flows or lake levels, or vary from the high flow release schedule. Under such conditions,
the Applicant shall notify the NCDENR, NCWRC, USFS and USFWS in writing and via
telephone according to the following schedule. For planned project maintenance or inspection
activities, the Applicant shall notify said agencies no less than 15 days prior to the variance. For
unforeseen circumstances required by an operating emergency, the Applicant shall notify the
same agencies in writing as soon as practical, but not more than 7 days after the beginning of the
event. If requested by DWQ, the Applicant shall expeditiously consult with any concerned
agency to discuss the Applicant's emergency, maintenance and inspection activities, and the
Applicant shall give due regard to any agency's recommendations. In lieu of the aforesaid
requirements in this paragraph, the Applicant may develop and implement a protocol to manage
reservoir levels and flows during emergency, maintenance and inspection activities. If DWQ
determines that any recurring variances may have an adverse effect on water quality, DWQ may
require the Applicant to develop and implement a protocol to minimize the impacts of the
Applicant's emergency, maintenance and inspection activities on water quality. No protocol will
become effective without approval by DWQ. The Applicant shall take all reasonable and
necessary actions to implement any such protocol.
9:11 The Applicant shall identify and report in writing existing and proposed consumptive
uses to DWQ and the N.C. Division of Water Resources (DWR). The Applicant shall report the
existing or projected (as appropriate) average consumptive withdrawal and maximum capacity
for each withdrawal. The appliea*tA j shall report existing consumptive uses to DWQ C?,L
and DWR within 60 days of the acceptance of the License and shall report proposed new or
expanded consumptive uses to DWQ and DWR within 30 days of receiving a request for the
proposed new or expanded withdrawal and before submitting any requests to FERC.
4.011 The Applicant shall conduct its activities in a manner consistent with State water quality
standards (including any requirements resulting from compliance with section 303(d) of the
Clean Water Act, 33 U.S.C. § 1313(d)) and any other appropriate requirements of State law and
federal law. If DWQ determines that such standards or laws are not being met (including the
failure to sustain a designated or achieved use or to comply with any new or amended water
quality standards or other appropriate requirements of State or federal law) or that State or
federal law is being violated, or that further conditions are necessary to assure compliance, DWQ
may reevaluate and modify this Certification to include conditions appropriate to assure
compliance with such standards and requirements in accordance with 15A NCAC 2H.0507(d).
Before modifying the Certification, DWQ will notify the Applicant and FERC, provide public
notice in accordance with 15A NCAC 21-1.0503 and provide opportunity for public hearing in
accordance with 15A NCAC 2H.0504. Any new or revised conditions will be provided to the
Applicant in writing, will be provided to the U.S. Army Corps of Engineers for reference in any
permit issued pursuant to Section 404 of the Federal Water Pollution Control Act, 33 U.S.C. §
1344, for the project, and shall also become conditions of the License. The conditions of this
Certification are not modified or superseded by any condition or article of the License.
44-.14= This Certification does not grant or affirm any property right, license or privilege in any
waters or any right of use in any waters. This Certification does not authorize any person to
-9-
interfere with the riparian rights, littoral rights or water use rights of any other person, and this
Certification does not create any prescriptive right or any right of priority regarding any usage of
water. No person shall interpose this Certification as a defense in any action respecting the
determination of riparian or littoral rights or other water use rights. No consumptive user is
deemed by virtue of this Certification to possess any prescriptive or other right of priority with
respect to any other consumptive user regardless of the quantity of the withdrawal or the date on
which the withdrawal was initiated or expanded. This Certification issues on the express
understanding of DENR that, pursuant to Federal Power Act section 27, 16 U.S.C. § 821, the
License does not establish or determine a proprietary right to any use of water. It establishes the
nature of the use to which a proprietary right may be put under the Federal Power Act.
Violations of any condition herein set forth may result in revocation of this Certification
and may result in criminal and/or civil penalties or other enforcement action. This Certification
shall become null and void unless the above conditions are made conditions of the FERC Permit.
This Certification shall expire upon expiration of the FERC permit.
If this Certification is unacceptable to you, you have the right to an adjudicatory hearing
upon written request within sixty (60) days following receipt of this Certification. This request
must be in the form of a written petition conforming to Chapter 150B of the North Carolina
General Statutes and filed with the Office of Administrative Hearings, P.O. Box 27447, Raleigh,
N.C. 27611-7447. If modifications are made to an original Certification, you have the right to
an adjudicatory hearing on the modifications upon written request within sixty (60) days
following receipt of the Certification. Unless such demands are made, this Certification shall be
final and binding.
-10-
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Document 2 cdocs://dc/259080/1
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Z d SONd113M-0M0:3WUN 26892U-6I6:-131 12:OZ I?iA b002-8-1D0
'r rM
Stag of North carorma
Department of gusttce
ROY COOPER 42 North e French NC 2 8Avenue Phonetls 8 8?OffiCe-6083
Attorney General Fax: [phone]
8 October 2004
David R. Poe, Esq. my facsimile si and U.S. mail
LeBoeuf, Lamb & Greene & MacRae, L.L.P. 202-986-8102
1875 Connecticut Ave,, N.W., Suite 1200
Washington DC 2009
RE: Alcoa v. DENR, Division of Water Quality (DWQ)
OAH file no. 04 EHR 0256
401 Certification No. 3447
Dear David;
This will confirm our conversation of last week. You had previously requested that I clarify DWQ's
rationale for not including in the draft amended certification certain language appearing in the settlement
agreement reached in the FERC licensing case, Specifically, you were concerned with the omission from
condition number 4 of text addressing compensation of Alcoa for costs incurred as a result of high flow
events which might be provided by Alcoa in addition to those required by the agreement.
As we discussed, in accepting or rejecting your client's proposed amendments to the certification,
it was not my client, Mr, John Domey's intent to alter, amend, or override any term of the settlement
agreement in the FERC matter. Issuance of a 401 certification is DWQ's representation to the Army Corps
of Engineers that a proposed activity will not violate water quality standards, if done in accordance with the
terms and conditions of the certification. In determining what amendments to the subject certification were
warranted, it was Mr. Dorney's intent to ensure that the document was not inconsistent with the terms of the
FERC agreement, while including only those additional terms directly relating to protection of water quality
standards in the Cheoah River. Having said that, as we discussed, Mr. Dorney was of the opinion that DWQ
would not, in fact, be responsible for the costs of any such additional high flow events which might occur,
I hope this has addressed your concerns. Please do not hesitate to call me if you would like to
discuss this matter further.
Sincerely, o-,? n
Sueaaaa P. Sumpter
Assistant Attorney General
/SPS
xc: John Dorney (by fax: [phone])
Steve Reed (by fax: [phone])
10'd 99:[[ 7002 9 130 8609-15Z-9z9:X6J 301Ad0 M N19 i1v
M gw£ u?
ROY COOPER
Attorney General
Beecher R. Gray
Administrative Law Judge
Office of Administrative Hearings
6714 Mail Service Center
Raleigh, North Carolina 27699-6714
RE: Alcoa v. DENR, DWQ
OAH File No. 04 EHR 0256
Dear Judge Gray:
Western Office
Phone: [phone]
Fax: [phone]
By facsimile transmission and first-class mail
Fax No. 919-733-3407
I am enclosing the original and 2 copies of a motion to continue the contested case hearing in the
above-referenced case.
Thank you for considering this matter.
Sincerely,
Sueanna P. Sumpter
Assistant Attorney General
/SPS
Enclosures
xc: David R. Poe, Esq.
(by first-class mail and fax, 202-986-8102)
ohn Domey
Steve Reed
Forrest Westall
WE77ANDS1401 GR
OUP
State of North Carofina
Department of Yustice
42 North French Broad Avenue
Asheville, NC 28801
9 September 2004
`?t'i/yO'tCT/Ojy
STATE OF NORTH CAROLINA
COUNTY OF GRAHAM
Alcoa Power Generating, Inc., )
Tapoco Division, )
Petitioner, )
V. )
NC Dept. of Environment and )
Natural Resources, Division of )
Water Quality, )
Respondent. )
MOTION TO CONTINUE
CONTESTED CASE HEARING
NOW COMES the respondent, North Carolina Department of
Environment and Natural Resources ("DENR"), Division of Water
Quality ("DWQ"), by and through its counsel of record, and moves
the Administrative Law Judge to continue the contested case hearing
in this matter. In support of this motion, respondent shows unto
the Court the following:
1. This case is presently scheduled for hearing in
Asheville, on Friday, 10 September 2004.
2. The parties have been engaged in good faith settlement
negotiations, and respondent believes that an agreement may have
been reached in principle regarding amendments to be made to the
petitioner's 401 Certification. However, further conversations may
be necessary to clarify certain of the proposed amendments and
IN THE OFFICE OF
ADMINISTRATIVE HEARINGS
04 EHR 0256
their effect.
r- t
This the & day of September, 2004.
ROY COOPER
Attorney Gene al,
Sueanna P. Sumpter
Assistant Attorney General
N.C. Department of Justice
42 N. French Broad Avenue
Asheville NC 28801
State Bar No. 9404
Telephone: [phone]
Fax: [phone]
E-mail: [e-mail]
CERTIFICATE OF SERVICE
I hereby certify that on this day the foregoing pleading was
served upon the parties to this action by depositing a copy of same
into an official depository of the United States Postal Service,
first-class postage prepaid, addressed as follows:
David R. Poe, Esq.
D. Randall Benne, Esq.
LeBoeuf, Lamb & Greene & MacRae, L.L.P.
1875 Connecticut Ave., N.W., Suite 1200
Washington DC 2009
and by confirmed facsimile transmission to the following number:
202-986-8102.
This the day of September, 2004.
Sueanna P. Sumpter
Assistant Attorney General
-3-
ATT GEN W OFFICE
Fax:[phone]

Aug 19
W?Ss1AM
State of North Caro(ina
Dep4.rtment Of 3ustice
ROY COOPER
Anamey General
- - MEMORANDUM - -
TO:
TO,
FROM:
L2A
MEMO:
42 North French Broad Avenue
Asheville, NC 28801
John Dorney, NC DENR
Division of Water Quality
Steve Reed, NC DENR
Regional Water Quality
Sueanna P. Sumpter
Assistant Attorney General
ALCOAv.NCDENR
OAH File No: 04 EUR 02S6
August 19, 2004
Total of 4 pages, including cover sheet
Please find attached a Notice of Hearing that we received in regards to the above referenced
case. This notice states that the hearing will be held on September 10, 2004 at 9:00 a.m. in the
Buncombe County Courthouse, Room 720,60 Courthouse Plaza, Asheville, N.C. Please make
note of this hearing on your calendar.
cc: Forrest Westa% NC DENR
Regional Water Quality
Facsimile [phone]
cc: Larry Frost, NC DENR Facsimile [phone]
AUG-19-2004 THU 15:02 TEL:[phone] NAME:DWQ-WETLANDS
Western Office
Phone: [phone]
Fax; [phone]
Facsimile [phone]
Facsimile [phone]
P. 1

ATT GEN W OFFICE
Fax:[phone] Aug 19 2004 16:20
FILED
OFFICE of
ADMINLMRATIVE HEARINGS
Aug 16 116 AM 2004
P. 02
T Q%OQI V MLi
AUG 1 8 304
STATE OF NORTH CAROLINA IN THE OFFICE OF AG WWrE R OFFtt
ADMINISTRATIVE HEARINGS
COUNTY OF GRAHAM 04 EHR 0256
Alcoa Power Generating, Inc. )
Tapoco Division }
Petitioner )
vs. ) NOTICE OF HEARING
N. C. Department of Environment and )
Natural Resources, Division of Water )
Quality )
Respondent )
NOTICE IS. HEREBY GIVEN that the above-captioned can will be brought on for
hearing before the undersigned administrative law judge on Friday, September 10, 2004 at
9:00 a.m. or as soon thereafter as possible in the Buncombe County Courthouse, Room 720,
60 Court Plaza, Asheville, North Carolina
1. This hearing will be conducted in accordance with G.S. Chapter 150E and the Rules of
Contested Case Hearings in the Office of Administrative Hearings, copies of which
may be obtained at cost from Molly Masich, Director of APA Services or by accessing
the OAH Web page at http://www.oah.state.no.us/hearings/#Chapter3,
2. Unless otherwise determined by the administrative law judge, the hearing will proceed
in the following sequence;
a. Call of the case
b. Motions and other preliminary matters
c. Stipulations, agreements, or consent orders entered into the record
d. Opening statements
e, Presentation of evidence; cross-examination
f Pinal arguments
3. All parties are hereby notified to bring to the hearing all documents, records, and
witnesses needed to present the party's case.
NOTE: IF SPECIAL EQUIPMENT IS REQUIRED FOR THE PRESENTATION
OF EVIDENCE, THE PARTIES ARE RESPONSIBLE FOR MAKING
ARRANGEMENTS FOR THE EQUIPMENT.
4. Subpoenas may be available to the parties pursuant to 26 NCAC 3 .0113 to compel the
attendance of witnesses or for the production of documents.
AUG-19-2004 THU 15:02 TEL:[phone] NAME:DWQ-WETLANDS P. 2
ATT GEN W OFFICE Fax:[phone] Aug 19 2004 16:20 P.03
A party may represent himself or be represented by an attorney. A party who is
represented by an attorney must file a Notice of Representation within 10 days of
service of this Notice containing the name, address, and telephone number of the
attorney, unless the attorney has already corresponded with this Office concerning
this case.
TAKE NOTICE THAT A FAILURE TO APPEAR AT THE HEARING MAY RESULT K
1. A finding that the allegations of or the issues set out in this Notice.mtay be taken as
true or deemed proved without further evidence;
21 Dismissal of the case or allowance of the motion or petition;
3. Suppression of a claim or defense; or
4. Exclusion of evidence.
NOTICE OF CANCELLATION OF HEARING
THE PARTIES MUST NOTIFY THE OFFICE OF ADMINISTRATIVE HEARINGS
'AT LEAST 24 HOURS PRIOR TO THE CANCELLATION OF THE CONTESTED CASE
HEARING. FAILURE TO GIVE TIMELY NOTICE OF CANCELLATION MAX RESULT
IN A CHARGE TO THE PARTIES FOR THE COST OF THE COURT REPORTER OR
HEARING ASSISTANT. SEE 26 NCAC 3,0123(f).
This Notice of Hearing is served in accordance with. G.S. 150B-23(b)and (c) and
satisfies the statutory requirement for 15-day notice prior to the hearing of a contested case.
This the 16th day of August, 2004.
r3Ro
eecher R. Gray
Administrative Law Judge
AUG-19-2004 THU 15:02 TEL:[phone] NAME:DWQ-WETLANDS P. 3
ATT GEN W OFFICE Fax:[phone]
A copy of the foregoing was mailed to: .
David R. Poe
LeBoeuf Lamb Greene & MacRae LLP
1875 Connecticut Ave NW
Suite 1200
Washington, DC 20009
ATTORNEY FOR PETITIONER
Sueanna P. Sumpter
Assistant Attorney General
NC Department of Justice
42 N. French Broad Ave.
Asheville, NC 28801
ATTORNEY FOR RESPONDENT
This the 16th day of August,.2004.
Aug 19 2004 16:20 P.04
Offiof Administrative Hearings
6714 Mail. Service Center
Raleigh, NC 27699-6714
[phone]
Fax: (9X9)733-3407
Z d S0NU113M-0M0:3WUN 268922L6T6:131 9T:2T NOW
State of Nqrth Garolina
department of 9usdze
ROY COOPER 42 North French Broad Avenue
Attorney General Asheville, NC 28801
FACSIMILE A SMISSI N COVE SHEET
t7002-6ti--1nf
Western Office
phone; [phone]
Pax: [phone]
Note: The Information contained In this foosimiie message is confidential Information intended only for the use
of the individual or entity named below. If the reader of this message is not the intended recipient, you are
hereby notified that any dissemination, distribution or copy of this telecopy is strictly prohibited. If you have
received this telecopy In error, please Immediately notify us by telephone and Mum the original message to us
at the address above via United States Postal Service. Thank you,
ATTORNEY-CLIENT OMMU ICA11 N
Privileged and Not Public Record
DATE: July 19, 2004
TO: John Dorney
Supervisor, Wetlands Group
Division of Water Quality
FAX NUMBER: 919.733-6893
TO: Steve Reed
Aquatic Ecology
Division of Water Resources
FAX NUMBER: 819-7334058
TO: Forrest R. Westall
Regional Water Quality Supervisor
FAX NUMBER: 299-7043
FROM: Sueanna P. Sumpter
Assistant Attorney General
Attorney General's Western Offioe
SUBJECT: Alcoa v. DENR, DAQ
OAH file no. 04 EHR 0256
401 Certification No. 3447
NUMBER OF PAGES INCLUDING COVER SHEET: 2
COMMENTS:
LO 'd
Please note new hearing date.
66:01 P007, 6l Inf 8009-15Z-8Z8 Xe? 1018j0 M N30 lltl
ATT GEN W OFFICE
4.'
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11
JUL-19-2004 MON 13:16 TEL:[phone]
NAME:DWQ-WETLANDS
P. 2
Fax:[phone] Jul 19 2004 14:33
T 'd S0NH-113M-0M0:3WHN 268922,L6T6 :131 9S : ZT nHl t7002- T --inf'
w •
state of xorth CaroCna.
(Department of Justice
ROY COOPER 42 North French Broad Avenue stern Office
Attormy (general Asheville, NC 28801 <PHL. (828 231-6083
Fax:
FACSIMILE TRANSMISSION COVE SHEET
Note: The information contained in this facsimile message is confidential information intended only tar the use
of the individual or entity named below. If the reader of this message is not the intended recipient, you are
hereby notified that any dissemination, distribution or copy of this telecopy is strictly prohibited. If you have
received this telecopy in error, please immediately notify us by telephone and return the original message to us
at the address above via United States Postal Service. Thank you.
ATTORNEY-CLIENT COMMUNICATION
Privileged and Not Public Record
DATE: July 1, 2004
TO: John Dorney
Supervisor, Wetlands Group
Division of Water Quality
FAX NUMBER: 919-733.6893
TO: Stave Reed
Aquatic Ecology
Division of Water Resources
FAX NUMBER: 919-733-3558
TO: Forrest R. Westall
Regional Water Quality Supervisor
FAX NUMBER: 299-7043
FROM: Susanna P. Sumpter
Assistant Attorney General
Attomey General's Western Office
SUBJECT: Alcoa v. DENR, DAQ
OAH file no. 04 EHR 0256
401 C®rtification No. 3447
NUMBER OF PAGES INCLUDING COVER SHEET: 5
COMMENTS: FYI
?Ll j L_:Cl 111111' l IrlI, `rrr?-lj'-`7.q E? 3;1???(1 31 i'13F_i ilk
d SCtth_Il3f1-0MO AWtihl ?689???6T5 _l3J_ _)S: 2T nHl toot-T- inf'
ROY COOPER
Attomey General
w s
State of orth Carolina
Vepartment of ,justice
42 North French Broad Avenue
Asheville, NC 28801
Western Office
Phone; 828) 251-6083
Fax: [phone]
1 July 2004
Ms, Kim Hausen
Chief Hearings Cleric
Office of Administrative Hearings
6714 Mail Service Center
Raleigh, North Carolina 27699-6714
RE: Alcoa v. DENR, DWQ
OAH File No. 04 EHR 0256
By csimi e_trans ion and first-class mail
Fax No. 919-733-3478
Dear Ms. Hausen:
I am enclosing the original and 2 copies of a motion for filing in the above-referenced contested
case. Please return a file-stamped copy to me in the enclosed self-addressed envelope.
Thank you for your help in this matter.
Sincerely, ?-?'
Sueanna P. Sumpter
Assistant Attorney General
1SPS
Enclosures
xc: David R. Poe, Esq.
(by first-class mail and fax, 202-986-8102)
John Dorney
Steve Reed
Forrest Wee-tall
1 Inf 8.f9-1SZ-8Z8:>:eJ
1-1 'd L' hl V006
Kilij) Y, 1439 i1N
-0M0 :3WUN 2689Z2Z6 T6 :131 LS : z T nHl vo c - T --inf,
S0Nh113M
STATE OF NORTH CAROLINA IN THE OBFxcE OF
ADMIIQISTRATIVE HEARxNGS
COUNTY OF -GRAMM ' 04 VIM 0256
Alcoa Power Generating, Inc., )
Tapoco Division, )
Petitioner, )
v ) MOTION TO CO t
CONTZSTED CASE HEARING
NC Dept. of Environmut and )
Natural Resources, Division of )
Water Quality, )
Respondent. )
t
b;OW COMES the respondent, North Carolina Department of
Environment and Natural Resources ("DFXK"), Division of Water
Quality ("DWQ"), by and through its counsel of record, and moves
the Administrative Law Judge to continue the contested case hearing
in this matter. in support of its motion, the respondent shows
unto the Court the following:
1. This matter it presently scheduled for hearing on
Thursday, 8 July 2004. This is the first time the case has been
set for hearing.
2. The parties are presently engaged in good faith
settlement negotiations which appear promising and'may amicably
conclude this litigation. The petitioner has requested the
respondent amend the subject 401 certification to reconcile
contradictions between that document and the FERC settlement
,0'd L7:P1 V007 I Irif 8?E9-15Z-8Z0 red 30IAd0 tit N35 11N
k- 'd 60NH-U3M-0M0 :3WHN 268922L6T6 :I31 LS: ?T nHl b002- T -1FIf
agreement referenced in the petitionerls petition for contested
case hearing and prehearing statement. This Will require, detailed
discussions, not only between the parties, but also between nwQ and
its sister agency, Division of Water Resources. Further, assuming
the parties reach an agreement in principle, it will be necessarY
to draft and reach consensus upon the wording of specific
amendments to be included in an amended 401 certification.
WHEREFORE, Respondent respectfully requests that this matter
be continued for a period of '45 days to allow the parties adequate
time to complete their settlement negotiations and determine if the
case can be amicably resolved.
Counsel for the petitioner has reviewed this motion and has
authorized the undersigned to represent to the Court that
petitioner joins in this motion for continuance.
This the day of July, 2004.
ROY COOPER
Attorney General
8ueanna P. Sumpter
Assistant Attorney General
N.C. Department of Justice
42 N. French Broad Avenue
Asheville NC 28901
Mate Bar No. 9404
Telephone: [phone]
Fax: [phone]
H-mail: wo s t@ncdo'.c
-2-
r0'd L7:C1 POH I Inf 27:9-157-HUXR? 371JAC? M N39 iiv
S d SONH-1I3M-OMO:3WHN 2689E2L6T6:131 LS:ST nHl b002-T--in!'
CERTIFICATE F SEM
I hereby certify that on this day the foregoing pleading was
served upon the parties to this action by depositing a copy of same
into an official depository of the United States Postal Service,
first-class postage prepaid, addressed as follows
David R. Poe, Esq.
LeBoeuf, Lamb & Greene a MacRae, L.L.P.
1875 Connecticut Ave., N.W., Suite 1200
Washington DC 2009
and by confirmed facsimile transmission to the following number:
202-986-8102.
This the day of July, 2004.
1#41.1 4g?
Susanna P. Sumpter
Assistant Attorney General
-3-
Iii 'd ,?' bl VOOZ l InI' 8?r9-15Z-8Z8:xed 3-JI330 M N39 lltl
a w F'Arf s?
ROY COOPER
Attorney General
State of North Carofina
(Department oflustice
42 North French Broad Avenue
Asheville, NC 28801
1 July 2004
Ms. Kim Hausen
Chief Hearings Clerk
Office of Administrative Hearings
6714 Mail Service Center
Raleigh, North Carolina 27699-6714
RE: Alcoa v. DENR, DWQ
OAH File No. 04 EHR 0256
Dear Ms. Hausen:
Western Office
Phone: [phone]
Fax: [phone]
By facsimile transmission and first-class mail
Fax No. 919-733-3478
I am enclosing the original and 2 copies of a motion for filing in the above-referenced contested
case. Please return a file-stamped copy to me in the enclosed self-addressed envelope.
Thank you for your help in this matter.
Sincerely,
Sueanna P. Sumpter
Assistant Attorney General
/SPS
Enclosures
xc: David R. Poe, Esq.
(by first-class mail and fax, 202-986-8102)
John Dorney
Steve Reed
Forrest Westall
WETLANDS / 401 GROUP
AIL 0 h 2004
WATER QUALITY SECTION
STATE OF NORTH CAROLINA
COUNTY OF GRAHAM
IN THE OFFICE OF
ADMINISTRATIVE HEARINGS
04 EHR 0256
Alcoa Power Generating, Inc., )
Tapoco Division, )
Petitioner, )
V. ) MOTION TO CONTINUE
CONTESTED CASE HEARING
NC Dept. of Environment and )
Natural Resources, Division of )
Water Quality, )
Respondent. )
NOW COMES the respondent, North Carolina Department of
Environment and Natural Resources ("DENR"), Division of Water
Quality ("DWQ"), by and through its counsel of record, and moves
the Administrative Law Judge to continue the contested case hearing
in this matter. In support of its motion, the respondent shows
unto the Court the following:
1. This matter is presently scheduled for hearing on
Thursday, 8 July 2004. This is the first time the case has been
set for hearing.
2. The parties are presently engaged in good faith
settlement negotiations which appear promising and may amicably
conclude this litigation. The petitioner has requested the
respondent amend the subject 401 certification to reconcile
contradictions between that document and the FERC settlement
agreement referenced in the petitioners petition for contested
case hearing and prehearing statement. This will require detailed
discussions, not only between the parties, but also between DWQ and
its sister agency, Division of Water Resources. Further, assuming
the parties reach an agreement in principle, it will be necessary
to draft and reach consensus upon the wording of specific
amendments to be included in an amended 401 certification.
WHEREFORE, Respondent respectfully requests that this matter
be continued for a period of 45 days to allow the parties adequate
time to complete their settlement negotiations and determine if the
case can be amicably resolved.
Counsel for the petitioner has reviewed this motion and has
authorized the undersigned to represent to the Court that
petitioner joins in this motion for continuance.
This the /_ day of July, 2004.
ROY COOPER
Attorney General
G
Sueanna P. Sumpter
Assistant Attorney General
N.C. Department of Justice
42 N. French Broad Avenue
Asheville NC 28801
State Bar No. 9404
Telephone: [phone]
Fax: [phone]
E-mail: [e-mail]
-2-
CERTIFICATE OF SERVICE
I hereby certify that on this day the foregoing pleading was
served upon the parties to this action by depositing a copy of same
into an official depository of the United States Postal Service,
first-class postage prepaid, addressed as follows:
David R. Poe, Esq.
LeBoeuf, Lamb & Greene & MacRae, L.L.P.
1875 Connecticut Ave., N.W., Suite 1200
Washington DC 2009
and by confirmed facsimile transmission to the following number:
202-986-8102.
This the J day of July, 2004.
Sueanna P. Sumpter
Assistant Attorney General
-3-
N NA r
611 4?
Michael F. Easley, Governor
William G. Ross Jr., Secretary
North Carolina Department of Environment and Natural Resources
Alan W. Klimek, P.E., Director
Division of Water Quality
Coleen H. Sullins, Deputy Director
Division of Water Quality
Division of Water Quality
Department of Environmental and Natural Resources
Wetlands/401 Unit
Street Address: 2321 Crabtree Boulevard, Suite 250
Raleigh, NC 27604-2260
Mailing Address: 1650 Mail Service Center
Raleigh, NC 27699-1650
Contact Information: Phone #: [phone]
Fax #: [phone]
Fax To:
Company.
Number of pages including cover sheet:
Notes or special instructions:
Fax #:
Date:
G

l 7 2?v

17

N. C. Division of Water Quality, 401 Wetlands Certification Unit,
1650 Mail Service Center, Raleigh, NC 27699-1650 (Mailing Address)
2321 Crabtree Blvd., Raleigh, NC 27604-2260 (Location)
[phone] (phone), 919-733-6893 (fax), (http://h2o.enr.state.nc.us/ncwetlands
xbF W A TFRP
?O G
f
O "r
Michael F. Easley, Governor
William G. Ross Jr., Secretary
North Carolina Department of Environment and Natural Resources
Alan W. Klimek, P. E. Director
Division of Water Quality
Coleen H. Sullins, Deputy Director
Division of Water Quality
March 23, 2004
MEMO
TO: Steve Reed, DW R
FROM: John Dome
RE: Tapoco Re 6insing
DWQ # 03-0191
Graham and Swain Counties
As you know, the Division of Water Quality issued a Certification for this project on
December 17, 2003. 1 recently received a petition for a Contested Hearing with the NC Office of
Administrative Hearings from David R. Poe (attorney for Alcoa Power Generation). The main
technical issue seems to be changes in the number of high flow releases from Santeetlah dam
to the Cheoah River that have been agreed to after the 401 was issued. I do not believe that
DWQ would have a problem modifying the 401 Certification accordingly but wanted to be sure
that DW R staff were aware of the issue and see if you have any ideas in this regard. There are
also apparently several unspecified "inconsistencies" that will need to be addressed as well. I
believe that Mr. Poe filed the OAH appeal to keep Alcoa's appeal option viable (which is certainly
understandable). Please call me at 733-9646 to discuss. Thankx
Cc: File copy
Kevin Barnett, DWQ Asheville Regional Office
N. C. Division of Water Quality 1617 Mail Service Center Raleigh, North Carolina 27699-1617 [phone]
Customer Service
1-877-623-6748
O? WATF??
G
v-? r
O '<
Michael F. Easley, Governor
William G. Ross Jr., Secretary
North Carolina Department of Environment and Natural Resources
Alan W. Klimek, P.E., Director
Division of Water Quality
December 17, 2003
Mr. Randall M. Overbey, President
Alcoa Power Generating Inc.
Tapoco Division
300 North Hall Road
Alcoa, TN 37701-2516
Dear Mr. Overbey:
Re: Certification Pursuant to Section 401 of the Federal Clean Water Act for the Tapoco
Hydroelectric FERC Relicensing Project
WQC Project #03-0191
FERC Number 2169
Graham and Swain Counties
Attached hereto is a copy of Certification No. 3447 issued to Alcoa Power Generating, Inc -
Tapoco Division dated December 17, 2003. If we can be of further assistance, do not hesitate to
contact us.
Sincerely,
Attachments
rc
.E., Di c or
Cc: Norman Pierson; Property and R'dlicensing Manager; Alcoa Power Generating Inc., Tapoco
Division, 300 North Hall Road, Alcoa, TN 37701-2516
Larry Frost, Asheville DWQ Regional Offices
File Copy
Central Files
Darlene Kucken; DWQ Basinwide Planning Program Unit
Steve Reed, NC Division of Water Resources
Marc Bernstein, NC Attorney General's Office
D. Randall Benn; LeBoeuf, Lamb, Greene and MacRae; 1875 Connecticut Ave., NW; Suite
1200; .Washington, DC 20009-5728
Chris Goudreau NC Wildlife Resources Commission
Mark Cantrell, US Fish and Wildlife Service - Asheville
John Boaze; Fish and Wildlife Associates (rep. for EBCI)
N. C. Division of Water Quality, 401 Wetlands Certification Unit,
1650 Mail Service Center, Raleigh, NC 27699-1650 (Mailing Address)
2321 Crabtree Blvd., Raleigh, NC 27604-2260 (Location)
*+;r iL
NORTH CAROLINA 401 WATER QUALITY CERTIFICATION
THIS CERTIFICATION is issued in conformity with the requirements of Section 401 Public Laws 92-
500 and 95-217 of the United States and subject to the North Carolina Division of Water Quality ("DWQ")
Regulations in 15 NCAC 2H, Section .0500. It is issued to to Alcoa Power Generating, Inc - Tapoco
Division ("the applicant") in Graham and Swain Counties pursuant to a revised application filed on the
19th day of February, 2003 with a revision dated March 18, 2003 (extension to October 20, 2003) to,
among other things, retain the Santeetlah and Cheoah Dams on the Cheoah and Little Tennessee
Rivers.
The application provides adequate assurance that the retention of fill material into the waters of the
Cheoah and Little Tennessee Rivers in conjunction with retention and operation of these dams and other
project activities will not result in a violation of applicable Water Quality Standards, discharge guidelines
and other applicable State laws. Therefore, the State of North Carolina certifies that this activity will not
violate the applicable portions of Sections 301, 302, 303, 306, 307 of PL 92-500 and PL 95-217 if
conducted in accordance with the application and conditions hereinafter set forth.
This approval is only valid for the purpose and design that you submitted in your application, as
described in the revised application. If you change your project, you must notify us and may be required
to send us a new application for a new Certification. If the property is sold, the new owner must be given
a copy of the Certification and approval letter and is thereby responsible for complying with all conditions.
For this approval to be valid, you must follow the conditions listed below. The issuance of this
Certification shall not exempt the applicant from complying with any and all statutes, rules, regulations, or
ordinances that may be imposed by other government agencies (local, state and federal) which have
jurisdiction, including but not limited to applicable river buffer rules in 15A NCAC 2B.0200, erosion and
sedimentation control requirements in 15A NCAC Chapter 4 and under the Division's General Permit
NCG010000, and any requirements pertaining to wetlands under 15A NCAC 2B .0200, 15A NCAC 2H
.0500 and 15A NCAC 2H .1300.
Condition(s) of Certification:
1. The Applicant shall release aquatic base flows from Santeetlah Dam in the magnitude and for the
duration described in Table 1. The Applicant shall determine the aquatic base flow for each month by
calculating the average daily inflow (ADI) value for the preceding three months. The Applicant shall
calculate the ADI using its recorded measures of daily change in reservoir elevation and total discharge
(generation flows plus instream flow releases, high flow event releases and flood discharge flows). f the
ADI is greater than the historic 25th percentile average flow for that month (Table 2), the Applicant shall
release flows according to Tier A. If the ADI is less than or equal to the historic 25th percentile average
flow for that month, the Applicant shall release flows according to Tier B.
Each Friday, the Applicant shall project inflow for the next ten days, which is the "planning period." The
water requirement for the planning period is the volumetric sum of base flows; high flow event releases, if
any; flood discharge flows, if any; Santeetlah Reservoir Operating Curve increase, if any; and generation.
The water available for the planning period is the volumetric sum of storage above the Santeetlah
Reservoir Operating Curve and the planning period projected inflow. During normal operations, generation
will be adjusted to maintain Santeetlah reservoir elevations at or above the Santeetlah Reservoir Operation
Curve. Except as necessary to meet other requirements of this Certification, such as aquatic base flows
and the Santeetlah Reservoir Operating Curve, generation is not restricted for normal operations.
Table 1. Aquatic base flow releases from Santeetlah dam into the Cheoah River.
Flow Rate cfs
Month Tier A Tier B
January 50 50
February 100 90
March 100 90
Aril 100 90
May 90 80
June 60 60
Jul 60 50
August 50 40
September 50 40
October 50 40
November 50 40
December 60 50
Table 2. Historic 25th percentile average flow for Cheoah River.
Month Threshold Flow cfs
January 256
February 446
March 484
April 615
May 617
June 526
Jul 403
August 289
September_ 208
October 141
November 116
December 148
2. The Applicant shall provide high flow events, which follow a repeating five-year schedule for the term of the
License according to Table 3.
Table 3. High flow releases for the Cheoah River.
High Flows Year 1 Yea r 2 Yea r 3 Yea r 4 Yea r 5 Mag nitude cfs
Event
s Days Event
s Days Event
s Days Event
s Days Event
s Days Day
1 Day
2 Day
3
January
February 1 2 1 2 1 2 1 2 1 2 1000 Var
March 1 3 1 3 1 3 1 3 1 3 1000 600 300
A ril 2 5 3 6 2 5 2 5 3 6 1000, 850 300
May 2 4 2 4 3 6 3 6 3 6 1000 850
June 1 2 1 2 1 2 1000 850
Jul 1 2 1000 850
August 1 1 1000
September 1 1 1 1 1000
October 1 1 1 1 1 1 1000
November 1 1 1 1 1 1 1 1 1 1 1000
December
Total: 10 19 10 19 10 20 10 19 10 20
600 cfs from hour 15 to hour 19, 400 cfs from hour 20 to hour 34; 200 cfs from hour 35 to hour 47; 100 cfs for
hour 48
2 600 cfs from hour 16 to hour 36; 300 cfs from hour 37 to hour 48
a. The Applicant shall release high flows via the Tainter gates at Santeetlah Dam. The Applicant shall use
the headwater elevation of Santeetlah Reservoir to determine the gate opening necessary to make the
required high flow release from Santeetlah Dam. The Applicant shall use the downstream gage at
Bearpen Gap during the initial system set up to confirm the required gate positions to make the high
flow releases;
b. The Applicant shall schedule high flow events on weekend days (Saturday and Sunday); schedule
three day events on Saturday, Sunday and Monday;
c. The Applicant shall schedule the March event for the third weekend in March and the November event
for the first weekend in November;
d. The Applicant shall schedule one 3-day high flow event in April in years 1, 3, and 4 of the repeating
sequence;
e. The Applicant shall ramp high flow events at 2-inches per hour for flows between the aquatic base flow
and 100 cfs. The Applicant shall use the downstream gage at Bearpen Gap during the initial system
set up to confirm the required gate positions and gate frequencies in order to ramp the high flow events;
f. For 2-day events in February, the release duration is 4 hours for day 1; releases are targeted to begin
at hour 11;
g. For 1-, 2-, and 3-day events in March through November, the release duration is 8 hours for the day 1
high flow releases; releases on day 1 are targeted to begin at hour 8 in March, April, October, and
November, and at hour 9 in May through September;
h. For 2-day events in April through July, the release duration is also 8 hours for the day 2 high flow
releases; releases on day 2 are scheduled to begin at hour 8 in April and at hour 9 in May, June, and
July;
i. For 2-day events in April through July, after the end of the 8 hours of high flow on day 1, the flow will be
reduced to 500 cfs until the beginning hour of high flow on day 2;
j. The Applicant shall schedule single day high flow events between September and November with a
minimum of 10 days between events.
3. The Applicant shall convene an annual planning meeting in early October of each year which shall include
the N.C. Department of Environment and Natural Resources (NCDENR), the North Carolina Wildlife
Resources Commission (NCWRC), the U.S. Forest Service (USFS), the U.S. Fish and Wildlife Service
(USFWS) and the Eastern Band of Cherokee Indians (EBCI). If the NCDENR, NCWRC, USFS, USFWS,
and EBCI notify the Applicant prior to the annual meeting that they have determined by consensus that
unanticipated circumstances have arisen that indicate that additional aquatic habitat enhancement would
result from the reallocation of water previously committed to the aquatic base flows and/or high flow event
schedule as required in Conditions 1 and 2, then the Applicant shall discuss with these entities the
reallocation of water for aquatic habitat enhancement purposes within the aquatic base flow regime and/or
the high flow event schedule for any year. The Applicant shall cooperate with the NCDENR, NCWRC,
USFS, USFWS, and EBCI in implementing any requested water reallocation, with due consideration given
to the following factors:
a. Any reallocation requests shall be based on periodic (i.e. every several years) re-evaluations of aquatic
conditions in the Cheoah River by the above-listed entities;
d
b. Any requested reallocation shall be designed to minimize any additional lost generation (either in lost
megawatts and/or lost value) and operating costs;
c. Under no circumstances shall water allocated as part of the aquatic base flow regime be utilized for
high flow events and vice versa; nor shall water from one year be reallocated to any other calendar
year;
d. Any requested reallocation of water must be able to be accommodated with the gate structures in
existence at that time;
If agreement is reached on reallocation, the Applicant shall take all reasonable and necessary actions to
implement the agreement on reallocation.
4. The Applicant shall continue funding the existing U.S. Geological Survey (USGS) Bearpen Gap gage
(Station No. 0351706800) on the Cheoah River below Santeetlah Dam. Additionally, the Applicant shall
install and maintain a calibrated staff gage, or the equivalent, at the Joyce Kilmer Bridge to allow for visual
confirmation of Cheoah River flows. The Applicant shall also make available the calculated release to the
Cheoah River at the Santeetlah dam on an hourly basis via the Internet.
5. The Applicant shall operate Santeetlah Reservoir according to the following operating rules except when
operating under the Low Inflow Protocol (Condition 7):
a. From January 1 to March 1, the elevation of Santeetlah Reservoir shall not drop below elevation 1931
ft.
b. From March 1 to April 1 the elevation of Santeetlah Reservoir shall not drop below the line between
elevation 1931 ft. on March 1 and elevation 1936 ft on April 1.
c. From April 1 to June 23, the elevation of Santeetlah Reservoir shall not drop below elevation 1936 ft.
d. From June 23 to July 1 the elevation of Santeetlah Reservoir shall not drop below the line between
elevation 1936 ft. on June 23 and elevation 1937 ft. on July 1.
e. From July 1 to September 8, the elevation of Santeetlah Reservoir shall not drop below elevation 1937
ft.
f. From September 8 to September 16 the elevation of Santeetlah Reservoir shall not drop below the line
between elevation 1937 ft. on September 8 and 1936 ft. on September 16.
g. From September 16 to November 1, the elevation of Santeetlah Reservoir shall not drop below
elevation 1936 ft.
h. From November 1 to December 1 the elevation of Santeetlah Reservoir shall not drop below the line
between elevation 1936 ft. on November 1 and elevation 1931 ft. on December 1.
i. From December 1 through December 31, the reservoir elevation shall not drop below elevation 1931-ft.
6. The Applicant shall monitor the elevation of Santeetlah Reservoir on an hourly basis using a water level
sensor located upstream of the gatehouse, on the upstream face of the intake. The Applicant shall
electronically transmit the water level data recorded by the sensor to the dispatcher's office in Alcoa,
Tennessee. The Applicant shall make available Santeetlah Reservoir elevation data on an hourly basis via
the Internet.
Based on actual experience, the Applicant may consult with interested parties on the actual water level
results at Santeetlah from the management practices implemented. The Applicant may implement only
minor adjustments of the Santeetlah Reservoir Operating Curve, and only after such consultation and
approval by the North Carolina Division of Water Quality (DWQ).
7. The Applicant shall work with the Parties to the Agreement in Principle Regarding Project Operations, Land
Protection and Funding of Resource Measures in North Carolina Related to a New FERC License for the
Tapoco Project (AIP), dated 8 September 2003, to develop a Low Inflow Protocol (LIP) for approval by
DWQ within 6 months of acceptance by the Applicant of the License. If the water available for any
planning period (see Condition 1) is less than the water requirement with no generation for the planning
period, then the Applicant shall implement measures according to the LIP. Based on experience in
implementing the LIP, the Applicant may consult with state and federal agencies to propose modifications
to the LIP. No modification shall become effective without written approval by DWQ.
8. During emergencies and for planned project maintenance or inspection activities, the Applicant
may vary from the reservoir operating curve, vary flows below the required aquatic base flows or lake
levels, or vary from the high flow release schedule. Under such conditions, the Applicant shall notify
the NCDENR, NCWRC, USFS and USFWS in writing and via telephone according to the following
schedule. For planned project maintenance or inspection activities, the Applicant shall notify said
agencies no less than 15 days prior to the variance. For unforeseen circumstances required by an
operating emergency, the Applicant shall notify the same agencies in writing as soon as practical, but
not more than 7 days after the beginning of the event. If requested by DWQ, the Applicant shall
expeditiously consult with any concerned agency to discuss the Applicant's emergency, maintenance
and inspection activities, and the Applicant shall give due regard to any agency's recommendations. In
lieu of the aforesaid requirements in this paragraph, the Applicant may develop and implement a
protocol to manage reservoir levels and flows during emergency, maintenance and inspection activities.
If DWQ determines that any recurring variances may have an adverse effect on water quality, DWQ
may require the Applicant to develop and implement a protocol to minimize the impacts of the
Applicant's emergency, maintenance and inspection activities on water quality. No protocol will
become effective without approval by DWQ. The Applicant shall take all reasonable and necessary
actions to implement any such protocol.
9. The Applicant shall identify and report in writing existing and proposed consumptive uses to DWQ and
the N.C. Division of Water Resources (DWR). The Applicant shall report the existing or projected (as
appropriate) average consumptive withdrawal and maximum capacity for each withdrawal. The
applicant shall report existing consumptive uses to DWQ and DWR within 60 days of the acceptance of
the License and shall report proposed new or expanded consumptive uses to DWQ and DWR within 30
days of receiving a request for the proposed new or expanded withdrawal and before submitting any
requests to FERC.
10. The Applicant shall conduct its activities in a manner consistent with State water quality standards
(including any requirements resulting from compliance with section 303(d) of the Clean Water Act, 33
U.S.C. § 1313(d)) and any other appropriate requirements of State law and federal law. If DWQ
determines that such standards or laws are not being met (including the failure to sustain a designated or
achieved use or to comply with any new or amended water quality standards or other appropriate
requirements of State or federal law) or that State or federal law is being violated, or that further conditions
are necessary to assure compliance, DWQ may reevaluate and modify this Certification to include
conditions appropriate to assure compliance with such standards and requirements in accordance with 15A
NCAC 21-1.0507(d). Before modifying the Certification, DWQ will notify the Applicant and FERC, provide
public notice in accordance with 15A NCAC 2H.0503 and provide opportunity for public hearing in
accordance with 15A NCAC 2H.0504. Any new or revised conditions will be provided to the Applicant in
writing, will be provided to the U.S. Army Corps of Engineers for reference in any permit issued pursuant to
Section 404 of the Federal Water Pollution Control Act, 33 U.S.C. § 1344, for the project, and shall also
become conditions of the License. The conditions of this Certification are not modified or superseded by
any condition or article of the License.
11. This Certification does not grant or affirm any property right, license or privilege in any waters or any right
of use in any waters. This Certification does not authorize any person to interfere with the riparian rights,
littoral rights or water use rights of any other person, and this Certification does not create any prescriptive
right or any right of priority regarding any usage of water. No person shall interpose this Certification as a
defense in any action respecting the determination of riparian or littoral rights or other water use rights. No

consumptive user is deemed by virtue of this Certification to possess any prescriptive or other right of
priority with respect to any other consumptive user regardless of the quantity of the withdrawal or the date
on which the withdrawal was initiated or expanded. This Certification issues on the express understanding
of DENR that, pursuant to Federal Power Act section 27, 16 U.S.C. § 821, the License does not establish
or determine a proprietary right to any use of water. It establishes the nature of the use to which a
proprietary right may be put under the Federal Power Act.
Violations of any condition herein set forth may result in revocation of this Certification and may result in
criminal and/or civil penalties or other enforcement action. This Certification shall become null and void
unless the above conditions are made conditions of the FERC Permit. This Certification shall expire upon
expiration of the FERC permit.
If this Certification is unacceptable to you, you have the right to an adjudicatory hearing upon written
request within sixty (60) days following receipt of this Certification. This request must be in the form of a
written petition conforming to Chapter 1508 of the North Carolina General Statutes and filed with the Office
of Administrative Hearings, P.O. Box 27447, Raleigh, N.C. 27611-7447. If modifications are made to an
original Certification, you have the right to an adjudicatory hearing on the modifications upon written
request within sixty (60) days following receipt of the Certification. Unless such demands are made, this
Certification shall be final and binding.
This the 17th day of December 2003
Certification Number 3447

Wetlands Tracking
Facility Name Alcoa Tapoco Hydroelectric FERC No. 2169 I
Project Number 03 0191 ? Express
Project Type purpose of I County Graham
Location Little Tennessee Cheoah River Robbinsville I County2 Swain
Received From APP COE ID # Region Asheville J
Received Date February 19, 2003 COE Susp Date Reg. Contact Larry Frost
Sent to Region Date 2/20/2003 DCM Susp Date APPLICATION `FEE J,NFO
Rcvd Region Date TIP Number Payment Date 2/19/2003
Last Action Date December 17, 2(N)3 More Info Requested 4/7/2003 Amount Paid $475.00
Last Action Issue WQC More Info Received, 8/20/2003 Payor LeBoeuf, Lamb,
Latitude (ddmmss) Mitigation ? Check # 30045375
Longitude (ddmmss) COC Received Date
Public Notice Written Public Notice" Comment Period
Date ReceivedDate Ends Date
Permit
Area
Area !Length, Length
(a
cres) (acres) (feet) i (feet)
Req.
ADDr. I Req. ADDr.

T d S0NU-113M-0M0 :3WtiN 268922Z6T6 : X31 2-t7: t-T 03M tb00 . -Nn r
State of ?rtk Carofitw
Department of 9u$tice
42 North French Broad Avenue Western Office
ROY COOPER Asheville, NC, 28801 Phone: ((82$) 251-6083
Attorney General Pax: (828) 2S 1-6"338
FACSIMILE TRANS.101raSIgN -QEMHWT
Note: The Information contained In this faCalmlle message is confidential Information intended only for the use
are
of the Individual or entity named below. tf the reader of this message is not the intended tit d1eltt, You have strictl
you hereby notified that any em?ease imm driately notify us y teleph one and return the original message to us
received this tefecopy In error, p
at the address above vie United States Postal Service. Thank you.
A 0 NEY-CL EN COMM NI AT ON
Privileged and Not Public Record
DATE: June 23, 2004
TO: John Dorney.
Supervisor, Wetlands Group
FAX NUMBER: 919-733-6893
TO: Steve Reed
Division of Water Resources
FAX NUMBER: 919-733-3558
TO: Forrest R. Westall
Regional Water Quality Super
FAX NUMBER: 299-7043
FROM,
Assist ant Atto ney General
SUBJECT: Alcoa, Tapoco Division v. DEN
OAH Flie No. 04 EHR 0256
401 Certification No. 3447
NUMBER OF PAGES: 2

COMMENTS: Attached is a Scheduling Ord( ow Lay VAH, setting this
matter for hearing on Thursday, 8 July 2004. Yesterday, I faxed to John Domey the
petitioner's list of suggested changes to the 401. Please let me know as soon as
time being settle this
possible your response to those hs. Also, hile I a for hopeful we can
matter, please note the hearing date your calendars lit'd 8151 Vp07
i; unf 8E89-15Z-M:XeA
3'1188? M1i N31 llt+

2 'd SGNU113M-0Ma 3WUN 268922Z6ti6:X31 8b:bi 03M b002-22-Nnf
omci o!
ADMININMT^^^^WE HFARIr4as .
,4,M 2M4
STATE OF NORTH CAROLINA IN THE OFFICE OF
ADMINISTRATIVE HEARINGS
04 >rHR 0256
COUNTY OF GRAHAM
Alcoa Power Generating, Inc. )
Tapoco Division )
Petitioner
NOTICE OF HEARING
vs. )
N. C. Department of Environment and )
Natural Resources, Division of Water j
Quality )
Respondent
Please take notice that the hearing in the above-captioned contested case will be held
Thursday, July 8; 2004, at 9.30 a.m. (or as soon thereafter as may be heard), in the Buncombe
County Courthouse, Room 910, 60 Court Plaza, Asheville, North Carolina,
A proposed Order on Final Pro-Trial Conference (in form prescribed by the Rules of
Superior and District Court, p. 28, Annotated Rules of North Carolina, 2004 Edition), shall be
filed at the Office of Administrative Hearings on or before July 8, 2004. Stipulations, final
witness lists, and marked exhibits shall be exchanged between the parties on or before July 8,
2004,
This the 14th day of June, 2004.
Apn
tef ann dministrative Law Judge
P
i
1

At3 WEB i &flm Vc FIClw
yy?pv7
Z0 *d 8[:q[ VOOZ CZ un f
8E.E9-15Z-8Z8 xe? 3OI330 M N39 11N
ATT GEN W riFFICE Fax:[phone] Jun 22 2004 8:16 P.Al
d« o
State of Nprtk Carolina
Department qfYustice
ROY COOPER
Attasncy (imml
L
cam'' p
C
42 North French Broad Avenue Western Office
Asheville, NC 28801 i Phone: [phone]
Fax: [phone]
FACSIMILE TRANSMISSION COVER SHEET
Note; The information contained in this facsimile message Is confidential information intended only for the use
of the Individual or entity named below. it the reader of this message Is not the intended recipient, you are
hereby notifled that any dissemination, distribution or copy of this telecopy Is strictly prohibited. If you have
received this telecopy in error, please Immediately notify us by telephone and return the original message to us
at the address above via United States Postal Service. Thank you.
ATTORNEY-CLIENT COMMUNICATION
Privileged and Not Public Record
DATE: June 22, 2004
TO, John Dorney
Supervisor, Wetland's Group
FAX NUMBER: 919.733.6893
FROM: Sueanna P. Sumpter
Assistant Attorney General
Attorney General's Western Offioe
SUBJECT: Alcoa v. DENR, DAO
OAH file no. 04 EHR 0256
401 Certification No. 3447
NUMBER OF PAGES INCLUDING COVER SHEET: 8
COMME ITT John, I have attached a memorandum prepared by Alcoa's
counsel identifying those areas where, in their opinion, the 401 and the FERC
settlement document are not consistent. After you have reviewed this, please let me
know what changes you would be willing to make to the 401. If you have any
questions or concerns, please call me at 828-251-6083. Once we have developed
appropriate language, we will confirm with Marc Bernstein that the new provisions
are, in fact, consistent with the FERC agreement and will then send It on to opposing
counsel. Thanks. Sueanna'
JUN-22-2004 TUE 07:46 TEL:[phone] NAME:DWQ-WETLANE1S F. 1
ATT GEN 'a' OFFICE Fax:[phone] Jun 22 2004 6:16 F'.02
FROM LLCM
(MON) 6. 21' 04 15:45/s7 15:4410.4863219254 F 1
1875 Connecticut Ave., N.W.
Suite 1200 FAWashington, D.C. 20009»5123
Tel: (202) 98"000
Fax: [phone] TRANSMISSION
TRANSMISSION PRORAMS; (202) 9464MM
FROM: David R. Poe Ift 0712 DATE: June 21, 2004
TEL: (202) M&8039 PAGES: 1 of 7 CLIENTIMATTER NO., 02401-00048

TO:
COMPANY:
PAX MG.? CONFIRMING
TELEPHONE NO.:
suesnm P. Sumpter BX-2514338 828-251-8083
CC:
Corelyn M, Oenhart 412-553-4180
Gene Mils 704-422-5778
Commentsimenage;
As discussed, here is a-memorandum, prepared by one of our lawyers,
which compares the existing 401 certificate with the terms of the Relicensing Settlement
Agreement. The memorandum fairly completely describes what needs to be done to the 401 to
make it conform to the RSA, but I did not want to presume to do that unless you indicate that, it
would be helpful for us to do sc.
Please let me know.
Regards,
04-
'A UW= LUMN16" MARrOICU Mtr wiOFYMM T!MP1MNNOW RT"M
Toiis sACSIM LE TRANSMI8914N CONTAINS CONFINISITIAL ANDVI LEGALLY PRIVILEM INFORMATION INTENDED ONLY rQA THE U8E OF THE INDIVIDUALISI NAMED ON THE
rR U'S SSION SHEFf. IF You ARE NOT THZ PiTOM0 RECIPIENT. YOU ARC HGANDY NOTIMBO THAT ANY pSGL06U1IE, COPYING, D18TRwrrON OR THE TAKING OF ANY
ACTION IN RELIANCE ON THE CONIEN I OF TMM FACSIMLE TRANSMISOM is $TOtOMT PROMISt W IF YOU HAVE RECEYED THIS CO~ICATION IN ERROR, PLEASE
CALL US COLLECT IM KWELY 80 THAT %K CAN ARRANGE FOR RETURN OF THE DOCLAA1109 TO US AT NO COST TO YOU, TWANK YOU
JUN-22-2004 TUE 07:46 TEL:[phone] NAME:DWQ-WETLANDS P. 2
ATT GEN w OFFICE
FROM LLCM
(MCN) 6.21'04 15:45/S715:4410-4863219254 F 2
L.EBOEUF, LAMB, GREENE & MAGRAE
L.L.P.
• LIMITED UULITV PARTNUbw INCLUDING, PNOFISSKft% 60RPOMTIONS
1875 CONNECTICUT AvE., N.W,
SUITE 1200
WASHINGTON, D.C. 20009-5728
June 18, 2004

TO; David R. Poe
FROM' Roshini Thayaparan
RE Comparison of Section 401 Certificate and Settlement Agreement for
?111,gJ'\
Tapoco Hydroelectric Project (FERC No. 2169) _
You have asked for a comparison of the Section 401 Certificate dated December 17, 2003
and Relieensing Settlement Agreement of April 2004 for the 'fapoeo Hydroelectric Project
(FERC No. 2169).
I. Provisions of the Settlement Agreement that do not appear in the Certificate
7
Certain conditions of Section 1.2 of the Settlement Agreement do not appear in the
Certificate. TheNt include provisions of Sections: 1.2.1, 1.2.2, 1,23, 1.2.4, 1.2.5, 1.2.7, and
1.2.8. These conditions are reproduced below.
SMlop 12.1 A?uat' Base Flows
The Certificate contailm for the most part, the satuc infurmation as the Settlement
Agreement. However, the Settlement Agreement provides the following:
• "In ,order to allow state and federal agencies to complete the collection of three
full years of baseline dow in the Cheoah River below Santeetlah Dam, the
Licenses shall release aquatic base flows starting September 1, 2005.
[,Drafdpg Note to Commbsion Staff The Padki request tbal the folio wing
provvion be Wladed in ike License in lien of elke preceding sentence of the
Commbsion 4nues a New Licvnse q kr September 1, 2005.1
The Licensee shall release aquatic base flows starting in the month after the
effective date of the License."
Section 1.2.2 High Fin Events
The Certificate contains, for the most pan, the same information as the Settlement
Agreement. However, the following items are not present.
IX' 2SIR459 1 02401 00831 01u1 V04 07 46an
JUN-22-2004 TUE 07:46 TEL:[phone] NAME:DWQ-WETLANDS
Fax:[phone] Jun 22 2004 8:16 P.03
P. 3
ATT GEN W oFF I CE
FROM LLGM
NON) 6.21'04 15:4 X- 15:4 AC- 4863219254 F 3
• "In order to allow state and federal agencies to complete the collection of three
full years of baseline data in the Cheoah River below Santeetlah Dam, the
Licensee shall provide high flow events starting September. 1, 2005,
(Drq ing Note to Commission Staff,, The Parties request that the foUowkg
provision be tuclxded In the License in lien of the preceding sentence of the
Commission issues a New License after September 1, 2005.1
The Licensee shall release high flow events starting in the month after the
effective date of the License,"
• "The Licensee will provide 12 months prior notice to the USFWS, USFS,
NCWRC, NCDENR, EBCI, and Graham County of the proposed schedule of high
flow eventet."
The third footnote reference found in Table OR-2,3 is not found in Table 3 of the
Certificate: "12:00 a.m. (midnight) shall be the starting point for determining tune
for initiating and changing flow releases"
Section l_A3 Reallocation of Flows
The Certificate contains, for the most part, the same information as the Settlement
Agreement. However the Certificate and Settlement Agreement set forth differing requirements
for actions to be taken upon agreement on reallocation.
• The Certificate states, mt section 3: "if agrecanem is reached on reallocation, the
Applicant shall take all reasonable and necessary actions to implement. the
agreement on reallocation." in comparison, the Settlement Agreement states: "If
agreement is reached on reallocation, the Licensee shall, make a filing with the
Commission requesting the approval of the requested revised allocation of flows
for that calendar year, and upon Commission approval will implement the revised
aquatic base flow regime and/or high flow event schedule."
Section 1 2 4 Potential Modifications to HaDCAfak, Five Year SchedUleof Hieh Flow Events
Section 1.2.4 of the Settlement Agreement does not appear in the Certificate.
• "Starting in October 2010, in conjunction with the annual planning meeting
required in Section 1.2.3 [Certifloate Condition 3] above, the Licensee will
consult with the U.S. Fish and Wildlife Service (USFWS), the U.S. Forest Servict
(USFS), the North Carolina Wildlife Resources Commission (N'CWRC), the
North Carolina Department of Environment and Natural Resources (NCDENR),
the Eastern Band of Cherokee Indians (EBCI), and Graham County regarding the
possibility of providing high flow events for whitewater boating purposes on a
trial basis in addition to the high flow events contemplated in the repeating five
year schedule included in Section 1.2.2 (Condition 21 above.
DC 138459 102401 00831.06/11104 07i4dwn
JUN-22-2004 TUE 07:46 TEL:[phone]
Fax:[phone] Jun 22 2004 8:16 P.04
.2-
NAME:DWQ-WETLANDS
•? R

F. 4
ATT GEN W OFFICE
FROM LLCM
(MON) 6 21' 04 15 :45/ST. 15:44/NO. 4863219254 P 4
If the USFWS, USFS, NCWRC, NCDENR, and EBCI notify the Licensee that
they are in full concurrence that biological recovery in the Cheoah River has
proceeded to a point that additional high flow events should be scheduled and
evaluated on a trial basis, then the Licensee will consult with USFWS, USFS,
NCWRC, NCDENR, EBCI and Graham County, to determine the specific
number, magnitude and timing of such additional trial high flow events. The
Licensee wil l provide the additional high flow events upon Commission approval
and if (i) the requesting entity has agreed, in writing to, and doe1; ccmapensale the
Licensee for its costs incurred as a result of the additional high flow events, (ii)
the requesting entity has agreed to and in fact does fully fund the expenses
incurred for additional monitoring of resoureea in the Cheoah River associated
with the evaluation of the bioln&al effects of the additional high flow events,
and (iii) the additional high flow events can be provided in a manner consistent
with other requirements of the License (including but not limited to the Santeedah
Reservoir Operating Curve, the Low Inflow Protocol, and the Maintenance and
Emergency Protocol).
In the event that the Licensee, USFWS, USFS, NCWRC, NCDENR, ESCI, and
Graham County agree on the provision of additional trial high flow events, then
no later dw 60 days prior to the anticipated start of the additional high flow
events, the Licensee shall file for Commission approval a plan of the proposed
revisions to the repeating five year schedule of high flow events.
In conjunction with the subsequent annual planning meetings, the Licensee will
consult with the USFWS, USFS, NCWRC, NCDENR, and EBCI in order to
determine whether to terminate, continue, or modify the additional trial high flow
events, or to recommend to FERC a permanent change in the repeating five year
schedule of high flow events. The determination shall be based on USl' WS.
UPS, NCWRC, NCDENR, and EBCI'a assessment of the effbcts of the
additional trial high flow events on the Cheoah River aquatic and associated
riparian biological communities, on other recreational uses of the Cheoah River,
on water levels in Santeetlah Reservoir, and of cumulative and secondary effects
on the ecological and aesthetic resources of the Cheoah River corridor. The
determination will also be based upon the Licensee's assessment of the
performance of the requesting entity in reimbursing the Licensee and the agencies
for costs associated with the additional relelmes, and any other factors assoeiatcd
wide Project operations and other relevant License requirements that may be
affected by the additional high flow events.
The Licensee shall make additional filings, as appropriate, notifying the
Commission of any additional requested revisions to the repeating five year
schedule of high flow events, and upon Commission approval will implement the
revised high flow event schedule,"
tx 256459,1 02401 00831 001 IM 07:46MI
Fax:[phone] Jun 22 2004 8:16 R.05
-3?
JUN-22-2004 TUE 07:46 TEL:[phone] NAME:DWQ-WETLANDS P. 15
ATT GEN W OFFICE
FROM LLGM
Section 2,5 Low inflow Protowl
(MON) 6-2114 15:46/ST. 15:44/N0.4863219254 P 5
Section 1.2.5 of the Settlement Agreement does not appear,in the Certificate.
"If inflow is not adequate to provide high flow releases and maintain required
reservoir levels while maintaining instream flows, then equitable reductions in
Santeetlah Reservoir water levels, and high flow releases to thr Cheosh River will
be made as follows. If the water available for the planning period (as defused in
Appendix A Section 1. 1.2) is less than the water requirement with no generation
for the scheduling period the following low flow stages will be implemented. The
low flow stage M11 remain in effacl until the next planning period when the water
requir=ent is compared to the water available. If the water available is less than
the water requirement, the next stage will be implemented. If the water available
is greater than the water requirement the previous stage will be implemented cr
normal operations if at Stage 1. If the actual inflow is appreciably different than
the projected inflow the Licensee may make adjustments to the low flow stage
during the planning period.
Stage 1: Reduce high flow duration by 25% (2 hours for each day of the high
flow event). Elevation mir imnum decreased by 0.25 feet below operating curve,
Stage 2:. Reduce high flow duration by 501/9 (4 hours for each day of the high
flow event). Elevation minimum decreased by 0.50 feet below the operating
curve.
Stage 3: Reduce high flow duration by 100%. Elevation minimum decreased by
0.75 feet below the operating curve.
Stage 4: Elevation minimum decreased by 1.0 feet below operating curve. If
continuous discharge is at Tier A reduce continuous discharge from Tier A to Tier
13 level
Stage 5. Continue rolamsins Tier B Continuous discharge through spillway gates
until elevation reaches bottom of the spillway gates (or valve).
Stage 6; Reduce continuous discharge to inflow,
Based on actual experience, the Licensee may consult with state slid Weral
agencies to modify the Low Inflow Protocol. If agrecrnent is reached on
modifying the protocol, the licensee shall make a filing with the Commission
requesting approval of the proposed modification and upon Commission approval
will implement the modified protocol."
DC 2584591 02401 0083106111104 07.4 Son
Fax:[phone] Jun 22 2004 8:17 P.06
A.
JUN-22-2004 TUE 07:47 TEL:[phone] NAr1E:DWQ-WETLANDS P. 6
ATT GEN '8 OFFICE Fax:[phone] Jun 22 2004 8:17 F1.07
FROM LLGM
(MON) 6.21'04 15:46/ST. 15:44/N0. 4663219254 P 6
Section 1 z2.7 Interim Imylementation
Section 1.2.7 of the Settlement Agreement does not appear in the Certificate.
¦ "Prior to the completion of the gate modifications required in Section 1.2.8 below,
the coutiutuous base flow release shall consist of a flow of approximately 50 efs
released through an existing Tainter gate at Santectlah Dam. Prior to the
completion of the Tainter gate automation required in Section 12.9 below, high
flow events, shall be mde with consideration of the following factors,
1. Releases from November l through Much 31 will be scN;duled to occur
during the regular work week (Monday through Friday) to minimize additional
personnel costs associated with releases on weekends using the existing gates and
related equipment; releases from April 1 through October 31 will occur on
wackends;
2. Releases will be initiated using the "Year 1 " release schedule in Table OR-23
(Table 31 and subsequent years will use "Year 2", "Year 3" etc.;
3. Ramping rates will not apply;
a. The LicerMe shall make reasonable effort to provide the high flow events
according to the high flow event schedule in Table OR-23 [Table 3], however
some variation in terms of actual timing of events may occur during this interim
period until the gate modifications are complete."
ect' 1,2.LO& M 'on muLUhadule
Section 1.2.8 of the Settlement Agreement does not appear in the Certificate.
¦ To accommodate release of the aquatic base flow and high flow events, the
Licensee shall add "piggy-back" gates to, and automate, either two or thIce of the
existing Tainter gat" on Santeedah Dam within 24 months of the effective date
of this License. The Licensee may deviate from the Santeetlarh Operating Curve,
the aquatic ben and high flow releases during the winter drawdown period to
allow for construction in the field of the modified Tainter gates. Within 90 days
of the effective date of this License, the Licensee shall file, for approval by the
Commission, a plan and schedule for modifying the Tainter gates,"
.5.
DC 25&59 102401 00831.06I1Y04 01:46ua
JUN-22-2004 TUE 07:47 TEL:[phone] NAME:DWQ-WETLANDS F. 7
ATT GEN W OFFICE Fax:[phone] Jun 22 2004 8:17 PAIR

FROM LLOM (WON) 6.21 04 15:407 15:400AW219254 P 7
111. Provisions of the Certificate that do not appear in the Settlemeut Agreement
There are particular conditions of the Certificate that do not appear in Article 1.2 of the
Settlement Agreement. These conditions include:
• Condition 1, paragraph 2 (description of project inflow) -- These rules are
available as Section 1. 1.2 of the Settlement Agreement,
• Condition 5 (operating rules) -- It appears that these rules describe Figure Olt-1.1
of Section 1.1.1 of the Settlement Agreement.
• Condition 6 (monitoring water elevation) --'These rules are available as Section
1. 1.3 of the Settlement Agreement.
• Condition 7 (development of a low inflow protocol) -- It appears that this
Condition may need to be replaced, in part, by provisions of Section 1.2.5 of the
Settlement Agreement.
• Condition 8 (variations from the reservoir operating curve)
• Condition 9 (reporting of consumptive uses)
• Condition 10 (compliance with water quality standards)
• Condition 11 (water use rights)
Since the prbuary purpose of this review was to identify provisions of the Settlement
Agreement that arc not present in the Certificate, these provisions are not reproduced here. If
you would prefer a more detailed description of these conditions please let me know.
.b,
DC 258aS9.1 QW1=310 i V04 Q7:46aa
JUN-22-2004 TUE 07:47 TEL:[phone]e93 NAME:DWQ-WETLANDS
P. S
11
0w a
r
Michael F. Easley, Governor
William G. Ross Jr., Secretary
North Carolina Department of Environment and Natural Resources
Alan W. Klimek, P.E., Director
Division of Water Quality
Coleen H. Sullins, Deputy Director
Division of Water Quality
Division of Water Quality
Department of Environmental and Natural Resources
Wetlands/401 Unit
Street Address: 2321 Crabtree Boulevard, Suite 250
Raleigh, NC 27604-2260
Mailing Address: 1650 Mail Service Center
Raleigh, NC 27699-1650
Contact Information: Phone #: [phone]
Fax #: [phone]
Fax To: Fax #: -73-3-35-5(
Company: Date: - -30 - 04
Number of pages including cover sheet:
Notes or special instructions:
f
N. C. Division of Water Quality, 401 Wetlands Certification Unit,
1650 Mail Service Center, Raleigh, NC 27699-1650 (Mailing Address)
2321 Crabtree Blvd., Raleigh, NC 27604-2260 (Location)
[phone] (phone), 919-733-6893 (fax), (http://h2o.enr.state.nc.us/ncwetlands
I

STATE OF NORTH CAROLINA
COUNTIES OF GRAHAM AND SWAIN
Alcoa Power Generating Inc..
Tapoco Division
Petitioner.

North Carolina Department of Environment and
Natural Resources, Division of Water Quality
Respondent.
1
VX111-
IN THE OFFICE OF
ADMINISTRATIVE HEARINGS
W' TLANDS / 401 GROUP
MAR 9 2004

PETITION
FOR A
CONTESTED CASE HEARING
Alcoa Power Generating Inc.. Tapoco Division ("AI'GI") hereby requests a contested
case hearing as provided for by North Carolina General Statute § 15013-23. concerning
Certification No. 3447 issued pursuant to Section 401 of the Federal Clean Water Act.. Public
Laws 92-500 and 95-217 of the United States, by the North Carolina Department of Environment
and Natural Resources. Division of NVater Quality ("NCD\VQ") on December 17. 2003. The
certification in question concerns APGI's operation of the "fapoco Hydroelectric Project, P-2169.
under a new project license currently being sought from the Federal Energy Regulatory
Commission ("FERC"). As described in more detail below. certain substantive changes and
technical clarifications must be made to Certificate No. 3447. Failure to make such changes
would substantially prejudice APGI's rights in the operation of the project for,,vhich
Certification No. 3447 was issued. Although it intends to seek a prompt settlement with
NCDWQ concerning the necessary changes to Certification No. 3447. APGI must seek a
contested hearing at this time in order to protect and preserve all of its rights in the event
settlement negotiations are unsuccessful.
All'! lb
DIV. OF WATER QUALITY
DIRECTOR'S OFFICE
_ ,,rOMIL
1
DISCUSSION
APGI currently is seeking a new license from 1=I---RC for its Tapoco hydroelectric project.
portions of which are located in Graham and Swain Counties. North Carolina. Pursuant to the
provisions of Section 401 of the federal Clean Water Act. before FERC may issue a new license
for the project the State of North Carolina must certify that the operation of the Tapoco project
during the new license term will not cause the violation of applicable state water quality
standards. See 33 U.S.C. § 1341. Accordingly. APGI filed an application for water quality
certification with NCDWQ on February 19. 2003, prior to its filing of the application for a nev,,
project license at FERC on February 21. 2003.
From the outset of the Tapoco relicensing APGI has employed an alternative licensing
process available under FERC's licensing regulations through vdhich APGI has involved
I
representatives of a wide range of entities having an interest in the continued operation of the
project. including all governmental agencies with jurisdiction over various aspects of the projcct
and related activities (e... NCDNNIQ). The ultimate goal of this alternative process is the
development of a comprehensive settlement agreement and draft license articles to be submitted
to FERC as the basis for a new license for the Tapoco Project.
In the fall of 2003. the relicensing participants with interests in North Carolina (including
NCDWQ) reached a preliminary settlement agreement in principle concerning the terms and
conditions necessary to protect. mitigate. and enhance the resources of North Carolina that would
be affected by Tapoco Project operations during the new license term. In particular. the
agreement outlined provisions for regulating the Cheoah River flow regime and operating rules
governing Santeetlah Reservoir levels.
2
Terms of the preliminary agreement relevant to water quality in North Carolina were
used to form the basis of and are reflected in the conditions ultimately placed on Certification
No. 3447 by NCDN\'Q. However. the preliminary settlement terms included as conditions to
Certification No. 3447 later evolved and changed as negotiations among the parties to the
relicensing progressed. Of particular relevance to this Petition. Condition 2 to Certification No.
3447 calls for no more than 10 high flow releases from Santeetlah dam to the Cheoah River over
19 to 20 days each year to provide for recreational boating opportunities. See Certification No.
3447 at 3-4. As a result of recently completed negotiations to develop the final comprehensive _?g
settlement
ng in APGI htheas Cheoah agreed River to ver create above an opportunity
onal terms thigho fl he ow events submitted for to F}SRCrecreati, however.
and beyond
the requirements of Condition 2. If requested. APGI has agreed to provide these additional high
ow events (after a minimum of five years of new license implementation) if certain biological
fl
criteria are met and if APGI is fully compensated for the additional releases. APGI and certain
interested parties (including NCDVJQ) have agreed to protocols that establish the biological and

compensation terms that will be utilized if a request for additional flows is made. These
protocols will be submitted to FE-RC as part of the final settlement agreement among the parties
to the relicensing.
APGI believes that creating an opportunity for these additional high flow events could
represent a significant change in the operation of the Sanieetlah development and requires
substantive changes to Condition 2. Furthermore. other progress made in negotiating the final
settlement terms also has resulted in various inconsistencies with Certification No. 3447. These 011-1
inconsistencies are more technical in nature and should require only minor modification and
clarification of various conditions to the water quality certification issued last December.
mailbox:///Cl/Documents%20and%20Settings/n 1 rp320/Application...
Subject: Tapoco 401 Comments
From: Steve Reed <[e-mail]>
Date: Wed, 10 Dec 2003 14:49:31 -0500
To: John Dorney <[e-mail]>
CC: Jim Mead <[e-mail]>, Marc Bernstein <[e-mail]>
John,
I have attached the Division of Water Resources' comments regarding APGI, Tapoco
's Application for 401 Water Quality Certification for the Tapoco Hydroelectric
Project in Graham County. We would appreciate receiving a draft version of the 401
certification before it is released for public comment, so that we can review it
and discuss any questions we might have with you and your staff. If this is
possible please provide the draft electronically to me, Jim Mead and Marc
Bernstein, as I will be out of the office froml2/11 through 12/16. Contact
information for these individuals is: Steve Reed, 919-715-5424,
[e-mail]; Jim Mead, 919-715-5428, [e-mail]; and Marc
Bernstein, 919-716-6956, [e-mail].
If you have any questions please contact me or Jim or Marc in my absence.
Thanks so much for your consideration.
Steve Reed

l

?) .1 6

WETLANDS 1401 GROUP
DEC 1 0 2003
WATER QUALITY SECTION
AIX,
t 0
A
I of 1 12/10/2003 2:49 PM
Ago.lly?
NCDENR
North Carolina Department of Environment and Natural Resources
Division of Water Resources
Michael F. Easley, Governor
December 10, 2003
Mr. John Dorney
Division of Water Quality - 401 Unit
N.C. Department of Environment & Natural Resources
1650 Mail Service Center
Raleigh, NC 27699-1650
Subject: Application for 401 Water Quality Certification
Tapoco Hydroelectric Project (FERC No. 2169)
Alcoa Power Generating Inc., Graham County
Dear Mr. Dorney:
William G. Ross Jr., Secretan
John N. Morris, Director
WETLANDS/ 401 GROUP
DEC 1 0 2003
WATER QUALITY SECTION
The Division of Water Resources (DWR) has reviewed Alcoa Power Generating Incorporated's (APGI)
application for a 401 water quality certification in conjunction with the license application submitted to the
Federal Energy Regulatory Commission (FERC) for APGI's Tapoco Hydroelectric Project. DWR has been
an active participant during the relicensing process and our involvement has included: scoping and refining
issues to be addressed; review and/or design of technical studies; participation in field studies; participation
on various technical work groups; and review and providing comments on technical studies. We have
reached consensus with other resource agencies and other interests regarding the protection, mitigation, and
enhancement measures needed for this project. DWR along with other DENR divisions, fellow resource
agencies, APGI, and the majority of stakeholders involved in the relicensing process signed an Agreement
in Principle on September 8, 2003. Components of this Agreement provide an enhanced instream flow
regime for the Cheoah River, improved reservoir levels, and funding for resource enhancement and
management.
We recommend that the following conditions be included in the 401 certification. They are based on the
Agreement in Principle Regarding Project Operations, Land Protection and Funding of Resource Measures
in North Carolina Related to a New FERC License for the Tapoco Project dated September 8, 2003.
References herein to the "License" are to the new FERC license for which DWQ is considering 401
certification, and the reference includes the new license and all annual licenses thereafter.
1. The Applicant shall release aquatic base flows from Santeetlah Dam in the magnitude and for the
duration described in Table 1. The Applicant shall determine the aquatic base flow for each month by
calculating the average daily inflow (ADI) value for the preceding three months. The Applicant shall
calculate the ADI using its recorded measures of daily change in reservoir elevation and total discharge
(generation flows plus instream flow releases, high flow event releases and flood discharge flows).
Letter from Steve Reed to John Dorney
Tapoco 401 certification, 12/10/03
If the ADI is greater than the historic 25th percentile average flow for that month (Table 2), the
Applicant shall release flows according to Tier A. If the ADI is less than or equal to the historic 25th
percentile average flow for that month, the Applicant shall release flows according to Tier B.
Each Friday the Applicant shall project inflow for the next ten days, which is the "planning period."
The water requirement for the planning period is the volumetric sum of base flows; high flow event
releases, if any; flood discharge flows, if any; Santeetlah Reservoir Operating Curve increase, if any;
and generation. The water available for the planning period is the volumetric sum of storage above the
Santeetlah Reservoir Operating Curve and the planning period projected inflow. During normal
operations, generation will be adjusted to maintain Santeetlah reservoir elevations at or above the
Santeetlah Reservoir Operation Curve. Except as necessary to meet other requirements of this
Certification, such as aquatic base flows and the Santeetlah Reservoir Operating Curve, generation is not
restricted for normal operations.
Table 1. Aquatic base flow releases from Santeetlah dam into the Cheoah River.
Flow Rate cfs
Month Tier A Tier B
January 50 50
February 100 90
March 100 90
Aril 100 90
May 90 80
June 60 60
Jul 60 50
August 50 40
September 50 40
October 50 40
November 50 40
December 60 50
2
Letter from Steve Reed to John Dorney
Tapoco 401 certification, 12/10/03
Table 2. Historic 25`h percentile average flow for Cheoah River.
Month Threshold Flow cfs
January 256
February 446
March 484
April 615
May 617
June 526
Jul 403
August 289
September 208
October 141
November 116
December 148
2. The Applicant shall provide high flow events, which follow a repeating five-year schedule for the term
of the License according to Table 3.
Table 3. High flow releases for the Cheoah River.
High Flows Year I Year 2 Year 3 Year 4 Year 5 Ma gnitude cfs
Events Days Events Days Events Days- Events Days Events Da s Da 1 Da 2 Da 3
January
-
-
February 1 2 1 2 1 2 1 2 1 2 1000 r
Var
March 1 3 1 3 1 3 1 3 1 3 1000 600 300
April 2 5 3 6 2 5 2 5 3 6 1000 850 300
May 2 4 2 4 3 6 3 6 3 6 1000 850
June 1 2 1 2 1 2 1000 850
Jul 1 2 1000 850
August 1 1 1000
September 1 1 1 1 1000
October 1 1 1 1 I 1 1000
November 1 1 I 1 1 I 1 1 1 1 1000
December
Total: 10
' 600 cA from hour 19 10
1-5 to hour 19.40 19 10
0 cfs from hour 2 20 10 19 10 20
0 to hour 34: 200 cfs from hour 35 to hour 47: 100 cfs for
hour 48
2 600 cfs from hour 16 to hour 36; 300 cfs from hour 37 to hour 48
a. The Applicant shall release high flows via the Tainter gates at Santeetlah Dam. The Applicant shall
use the headwater elevation of Santeetlah Reservoir to determine the gate opening necessary to make
the required high flow release from Santeetlah Dam. The Applicant shall use the downstream gage
at Bearpen Gap during the initial system set up to confirm the required gate positions to make the
high flow releases;
Letter from Steve Reed to John Dorney
Tapoco 401 certification, 12/10/03
b. The Applicant shall schedule high flow events on weekend days (Saturday and Sunday); schedule
three day events on Saturday, Sunday and Monday;
c. The Applicant shall schedule the March event for the third weekend in March and the November
event for the first weekend in November;
d. The Applicant shall schedule one 3-day high flow event in April in years 1, 3, and 4 of the repeating
sequence;
e. The Applicant shall ramp high flow events at 2-inches per hour for flows between the aquatic base
flow and 100 cfs. The Applicant shall use the downstream gage at Bearpen Gap during the initial
system set up to confirm the required gate positions and gate frequencies in order to ramp the high
flow events;
f. For 2-day events in February, the release duration is 4 hours for day 1; releases are targeted to begin
at hour 11;
g. For 1-, 2-, and 3-day events in March through November, the release duration is 8 hours for the day
1 high flow releases; releases on day 1 are targeted to begin at hour 8 in March, April, October, and
November, and at hour 9 in May through September;
h. For 2-day events in April through July, the release duration is also 8 hours for the day 2 high flow
releases; releases on day 2 are scheduled to begin at hour 8 in April and at hour 9 in May, June, and
July;
i. For 2-day events in April through July, after the end of the 8 hours of high flow on day 1, the flow
will be reduced to 500 cfs until the beginning hour of high flow on day 2;
j. The Applicant shall schedule single day high flow events between September and November with a
minimum of 10 days between events.
3. The Applicant shall convene an annual planning meeting in early October of each year which shall (`Q01
include the N.C. Department of Environment and Natural Resources (NCDENR), the North Carolina
Wildlife Resources Commission (NCWRC), the U.S. Forest Service (USFS), the U.S. Fish and Wildlife
Service (USFWS) and the Eastern Band of Cherokee Indians (EBCI). If the NCDENR, NCWRC,
USFS, USFWS, and EBCI notify the Applicant prior to the annual meeting that they have determined by
consensus that unanticipated circumstances have arisen that indicate that additional aquatic habitat
enhancement would result from the reallocation of water previously committed to the aquatic base flows
and/or high flow event schedule as required in Conditions 1 and 2, then the Applicant shall discuss with
these entities the reallocation of water for aquatic habitat enhancement purposes within the aquatic base
flow regime and/or the high flow event schedule for any year. The Applicant shall cooperate with the
NCDENR, NCWRC, USFS, USFWS, and EBCI in implementing any requested water reallocation, with
due consideration given to the following factors:
a. Any reallocation requests shall be based on periodic (i.e. every several years) re-evaluations of
aquatic conditions in the Cheoah River by the above-listed entities;
4
Letter from Steve Reed to John Dorney
Tapoco 401 certification, 12/10/03
b. Any requested reallocation shall be designed to minimize any additional lost generation (either in
lost megawatts and/or lost value) and operating costs;
c. Under no circumstances shall water allocated as part of the aquatic base flow regime be utilized for
high flow events and vice versa; nor shall water from one year be reallocated to any other calendar
year;
d. Any requested reallocation of water must be able to be accommodated with the gate structures in
existence at that time;
If agreement is reached on reallocation, the Applicant shall take all reasonable and necessary actions to
implement the agreement on reallocation.
4. The Applicant shall continue funding the existing U.S. Geological Survey (USGS) Bearpen Gap gage
(Station No. 0351706800) on the Cheoah River below Santeetlah Dam. Additionally, the Applicant
shall install and maintain a calibrated staff gage, or the equivalent, at the Joyce Kilmer Bridge to allow
for visual confirmation of Cheoah River flows. The Applicant shall also make available the calculated
release to the Cheoah River at the Santeetlah dam on an hourly basis via the Internet.
5. The Applicant shall operate Santeetlah Reservoir according to the following operating rules except when
operating under the Low Inflow Protocol (Condition 7):
a. From January 1 to March 1, the elevation of Santeetlah Reservoir shall not drop below elevation
1931 ft.
b. From March 1 to April 1 the elevation of Santeetlah Reservoir shall not drop below the line between
elevation 1931 ft. on March 1 and elevation 1936 ft on April 1.
c. From April 1 to June 23, the elevation of Santeetlah Reservoir shall not drop below elevation 1936
ft.
d. From June 23 to July 1 the elevation of Santeetlah Reservoir shall not drop below the line between
elevation 1936 ft. on June 23 and elevation 1937 ft. on July 1.
From July 1 to September 8, the elevation of Santeetlah Reservoir shall not drop below elevation
1937 ft.
f. From September 8 to September 16 the elevation of Santeetlah Reservoir shall not drop below the
line between elevation 1937 ft. on September 8 and 1936 ft. on September 16.
g. From September 16 to November 1, the elevation of Santeetlah Reservoir shall not drop below
elevation 1936 ft.
h. From November 1 to December 1 the elevation of Santeetlah Reservoir shall not drop below the line
between elevation 1936 ft. on November 1 and elevation 1931 ft. on December 1.
i. From December 1 through December 31, the reservoir elevation shall not drop below elevation
1931-ft.
5
Letter from Steve Reed to John Dorney
Tapoco 401 certification, 12/10/03
6. The Applicant shall monitor the elevation of Santeetlah Reservoir on an hourly basis using a water level
sensor located upstream of the gatehouse, on the upstream face of the intake. The Applicant shall
electronically transmit the water level data recorded by the sensor to the dispatcher's office in Alcoa,
Tennessee. The Applicant shall make available Santeetlah Reservoir elevation data on an hourly basis
via the Internet.
Based on actual experience, the Applicant may consult with interested parties on the actual water level
results at Santeetlah from the management practices implemented. The Applicant may implement only
minor adjustments of the Santeetlah Reservoir Operating Curve, and only after such consultation and
approval by the North Carolina Division of Water Quality (DWQ).
7. The Applicant shall work with the Parties to the Agreement in Principle Regarding Project
Operations, Land Protection and Funding of Resource Measures in North Carolina Related to a New
FERC License for the Tapoco Project (AIP), dated 8 September 2003, to develop a Low Inflow Protocol
(LIP) for approval by DWQ within 6 months of acceptance by the Applicant of the License. If the water
available for any planning period (see Condition 1) is less than the water requirement with no generation
for the planning period, then the Applicant shall implement measures according to the LIP. Based on
experience in implementing the LIP, the Applicant may consult with state and fet?.Aparc encies to
propose modifications to the LIP. No modification shall become eff ctive without v al by DWQ.
I w w(i 6,4 ?a ?f tv*-2-.
8. During emergencies and for planned projec maintenance or inspection activities, the Applicant may
vary from the reservoir operating curve, v y flows below the required aquatic base flows or lake levels,
or vary from the high flow release schedu e. Under such conditions, the Applicant shall notify the
NCDENR, NCWRC, USFS and USFWS according to the following schedule. For planned project
maintenance or inspection activities, the Applicant shall notify said agencies no less than 15 days prior
to the variance. For upfor?een circumstances required by an operating emergency, the Applicant shall
yyL WYl
notify the same =enc s s don as practical, but not more than 7 days after the be i ring of the event.
If requested by y, the Applicant shall expeditiously consult with" s a% agency to discuss the
Applicant's emergency, maintenance and inspection activities, and the Applicant shall give due regard to
any agency's recommendations. In lieu of the aforesaid requirements in this paragraph, the Applicant
may develop and implement a protocol to manage reservoir levels and flows during emergency,
maintenance and inspection activities. If DWQ determines that any recurring variances may have an
adverse effect on water quality, DWQ may require the Applicant to develop and implement a protocol to
minimize the impacts of the Applicant's emergency, maintenance and inspection activities on water
quality. No protocol will become effective without approval by DWQ. The Applicant shall take all
reasonable and necessary actions to implement any such protocol.
9. In the year in which the License is effective, the Applicant shall establish and maintain a fund, to be
known as the North Carolina Resource Management and Enhancement Fund (the Fund). The Applicant
shall contribute the amount of $100,000 in year one of the License and $25,000 annually thereafter,
adjusted annually for the Gross Domestic Product Implicit Price Deflator, for the duration of the term of
the License, except for the three years at the end of the License term (excluding any annual license(s) at
the end of the License). The purpose of this fund is to further ensure the protection of water quality
standards and compliance by the Applicant with other appropriate requirements of State law, including
by mitigating the continuing environmental impacts associated with the Project's operations, in
6
Letter from Steve Reed to John Dorney
Tapoco 401 certification, 12/10/03
particular the Santeetlah and Cheoah developments, and the portion of the Calderwood Development in
North Carolina, on the Cheoah River and Little Tennessee River during the License term.
The Licensee shall assist in the establishment of the operating on of the Fund to the extent necessary to
reasonably ensure that the Fund is operated as follows:
a) Funds are to be available to the NCDENR, NCWRC, USFS, USFWS and EBCI for: i)
monitoring of biotic and abiotic parameters, ii) addition of large woody debris, gravel and vegetation
management in the Cheoah River below Santeetlah Dam, and iii) other natural resource stewardship and
project mitigation activities, including but not limited to, A) threatened and endangered species recovery
efforts, B) control of exotic species and C) environmental outreach and education directly related to
those Cheoah River and Little Tennessee River basin resources affected by ongoing Tapoco Project
operations.
b) A Governing Board is to be comprised of representatives of NCDENR, NCWRC, USFS,
USFWS and EBCI (the North Carolina Fund Governing Board) and is to be solely responsible for
decisions on the use of the Fund, including any accrued interest. Representatives of interested non-
governmental organizations signatory to the Federal Energy Regulatory Commission (FERC)
relicensing Settlement Agreement, along with the Applicant, may serve as non-voting Advisory
Members to the Board (the North Carolina Fund Advisory Members). This fund is to be established and
administered in accordance with the North Carolina Resource Management and Enhancement Fund
Agreement if such agreement is developed by the Applicant and Parties to the AIP.
10. The Applicant shall identify and report in writing existing and proposed consumptive uses to DWQ
and the N.C. Division of Water Resources (DWR). The Applicant shall report the existing or
projected (as appropriate) average consumptive withdrawal and maximum capacity for each
withdrawal. The applicant shall report existing consumptive uses to DWQ and DWR within 60 days
of the acceptance of the License and shall report proposed new or expanded consumptive uses to
DWQ and DWR within 30 days of receiving a request for the proposed new or expanded withdrawal
and before submitting any requests to FERC.
11. The Applicant shall conduct its activities in a manner consistent with State water quality standards
(including any requirements resulting from compliance with section 303(d) of the Clean Water Act, 33
U.S.C. § 1313(d)) and any other appropriate requirements of State law and federal law. If DWQ
determines that such standards or laws are not being met (including the failure to sustain a designated or
achieved use or to comply with any new or amended water quality standards or other appropriate
requirements of State or federal law) or that State or federal law is being violated, or that further
conditions are necessary to assure compliance, DWQ may reevaluate and modify this Certification to
include conditions appropriate to assure compliance with such standards and requirements in accordance
with 15A NCAC 2H.0507(d). Before modifying the Certification, DWQ will notify the Applicant and
FERC, provide public notice in accordance with 15A NCAC 2H.0503 and provide opportunity for
public hearing in accordance with 15A NCAC 2H.0504. Any new or revised conditions will be
provided to the Applicant in writing, will be provided to the U.S. Army Corps of Engineers for reference
in any permit issued pursuant to Section 404 of the Federal Water Pollution Control Act, 33 U.S.C. §
1344, for the project, and shall also become conditions of the License. The conditions of this
Certification are not modified or superseded by any condition or article of the License.
7
Letter from Steve Reed to John Dorney
Tapoco 401 certification, 12/10/03
12. This Certification does not grant or affirm any property right, license or privilege in any waters or any
right of use in any waters. This Certification does not authorize any person to interfere with the riparian
rights, littoral rights or water use rights of any other person, and this Certification does not create any
prescriptive right or any right of priority regarding any usage of water. No person shall interpose this
Certification as a defense in any action respecting the determination of riparian or littoral rights or other
water use rights. No consumptive user is deemed by virtue of this Certification to possess any
prescriptive or other right of priority with respect to any other consumptive user regardless of the
quantity of the withdrawal or the date on which the withdrawal was initiated or expanded. This
Certification issues on the express understanding of DENR that, pursuant to Federal Power Act section
27, 16 U.S.C. § 821, the License does not establish or determine a proprietary right to any use of water.
It establishes the nature of the use to which a proprietary right may be put under the Federal Power Act.
If you have questions please contact me at 919-715-5424 or [e-mail]. We would
appreciate receiving a draft version of the 401 certification before it is released for public comment, so that
we can review it and discuss any questions we might have with you and your staff.
Sincerely,
Steve Reed
Hydropower Licensing Coordinator
cc: Jim Mead (DWR)
Larry Frost (DWQ)
Chris Goudreau (WRC)
Donley Hill (USFS)
Mark Cantrell (USFWS)
John Boaze (rep. for EBCI)
Norm Pierson (APGI)
Marc Bernstein (NC DOJ)
8
W q T Michael F. Easley, Governor
F
F
0?0 ?QG William G. Ross Jr., Secretary
North Carolina Department of Environment and Natural Resources
?
C7 r Alan W. Klimek, P. E. Director
j Division of Water Quality
Coleen H. Sullins, Deputy Director
Division of Water Quality
October 19, 2003
D. Rand,! Senn
APGI Counsel
LeBoeuf, Lamb, Greene and MacRae
1875 Connecticut Avenue, NW
Suite 1200
Washington, DC 20009-5728
Dear Mr. Benn:
RE: 401 Certification for Tapoco Hydroelectric Relicensing Project (FERC No. 2196)
DWQ # 03-0191
Graham/Swain Counties
Thank you for your letter of March 18, 2003 agreeing to an extension of time for the 401
Water Quality Certification for this project. Your letter stated that your client requested that
DWQ extended its processing for this application until October 20, 2003. 1 understand that
discussions are still proceeding well to resolve the remaining issues with respect to this project.
As requested in your letter, DWQ's 60-day processing time will begin on October 20,
2003. Therefore, DWQ must take action on this project by December 17, 2003. We urge you to
continue discussions with the relevant state and federal agencies so the 401 Certification can
reflect that agreement. I can be reached at 919-733-9646 if you have any questions.
ours,
-)AA
Steve Reid, Di ision of Water Resources
Norman Piers n, Alcoa Power Generating,
Alcoa, N 37701-2516
Tapoco Division, 300 North Hall Road,
File copy
Central files
Kevin Barnett, DWQ Asheville Regional Office
Marc Bernstein, NC Attorney General, Environmental Division
N. C. Division of Water Quality 1617 Mail Service Center Raleigh, North Carolina 27699-1617 [phone]
Customer Service
1-877-623-6748
Revisions to Tapoco SAP
Subject: Revisions to Tapoco SAP
Date: Tue, 14 Oct 2003 13:00:29 -0400
From: "Marc Bernstein" <[e-mail]>
To: <[e-mail]>, <[e-mail]>
CC: "Mary Thompson" <[e-mail]>, <[e-mail]>,
<[e-mail]>
Sarah and Randy,
At last week's meeting we discussed that the draft agreement seemed to assume that the
What I have done is create a new section 3.n that deals just with the 401s. I probabl:
Sarah, please forward this to the appropriate Tennessee personnel, as the changes affe,
Let me know if you have any questions/comments.
Marc
Name: TapocoSAP (NC Draft 2003-10-14).doc
Type: Microsoft Word Document
F-N
TapocoSAP (NC Draft 2003-10-14).doc (application/msword)
Encoding: base64
Download Status: Not downloaded with message
I of 1 10/14/03 3:24 PM
M
ALCOA
August 11, 2003
Mr. John Dorsey
NC Dept. of Environment and Natural Resources
Division of Environmental Management
4401 Reedy Creek Rd
Raleigh, NC 27607
Alcoa Primary Metals
Alcoa Power Generating Inc.
Tapoco Division
300 North Hall Road
Alcoa, TN 37701-2516 USA
lei Tel: [phone]
??I ??? Fax: [phone]
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4 UG 2 ra 1Ui? r
?ITysF
CTjp?,
RE: Tapoco Hydroelectric Project (FERC No. 2169)
Response of Alcoa Power Generating Inc. (APGI) to the Federal Energy Regulatory
Commission's (FERC's) Additional Information Request (AIR) on the Tapoco License
Application
Dear Mr. Dorsey:
On July 24, 2003, APGI responded to FERC's June 11, 2003 AIR on the License Application for
the Tapoco Hydroelectric Project. In addition to the information provided in response to the AIR,
APGI submitted clarifications and corrections to the Tapoco License Application, dated February
2003. Enclosed please find a copy of APGI's response to FERC's June 11, 2003 AIR, including
revised pages D-1 through D-3 of Exhibit D of the Tapoco License Application.
If you have any questions, please feel free to contact me at [phone].
Sincerely,
Norman L. Pierson V'
Property and Relicensing Manager '\A
Enclosure
Docket Number P-2169-020
The following paragraphs provide the information requested in Schedule A of
FERC's June 11, 2003 letter to the Tapoco Division (Tapoco) of Alcoa Power
Generating Inc. FERC's information requests are shown in italics, with Tapoco's
responses following in plain text.
1. It is our understanding that the tailrace from the Chilhowee Development extends
about 300 feet downstream from the Chilhowee Development dam and that the Tapoco
Project boundary extends about 3,250 feet downstream from the center of the dam.
Please describe the reason for the rectangular-box-like configuration in the project
boundary located near the center of the streambed below and west of Chilhowee
Development dam (Exhibit G Sheet 2 of 24 with the westernmost end of the box at N060
-05'E 160).
The Chilhowee Development tailrace includes an excavated channel that
extends approximately 3,000 feet downstream of the powerhouse as discussed
further in Additional Information Request (AIR) Response No. 2. The
rectangular-box-like configuration in the Project boundary downstream of the
Chilhowee Dam, shown on Sheet 2 of 24 in Exhibit G, encloses the end of the
Chilhowee Development's excavated tailrace.
2. We are trying to determine if there is ever a free flowing, riverine stretch of river
below the Chilhowee Development dam, and if so, the effects of the project operations on
aquatic resources that occur in this stream reach. Please describe the effects on fish and
invertebrates within the Project boundary below the Chilhowee Development dam during
those times when there is not any flow releases (which we understand usually occurs
annually between the period November I through April 30). Please describe whether the
backwater from the Tellico Reservoir reaches the Chilhowee Development dam during
these no flow periods, and if not, identify, in feet, the distances from the dam the
backwater reaches.
There is no free-flowing river reach below Chilhowee Dam and powerhouse due
to the presence of an excavated discharge channel that was made at the time of
dam construction. Because of this channel, the stretch of river, which extends
from Chilhowee Dam downstream approximately 3,000 feet, behaves more like a
pool than a free-flowing river. The discharge channel of Chilhowee Development
was excavated down from the natural riverbed to elevation 792.0 feet. The
bottom width of the discharge channel varies from 90 to 165 feet for a distance of
2,622 feet downstream of the powerhouse. The tailrace channel then slopes up
for a distance of about 500 feet downstream to intersect the natural riverbed at
an elevation of approximately 804.5 feet. Due to this configuration of the river
channel, there is no free-flowing, riverine stretch of river below the Chilhowee
Dam.
In addition, the backwater from the Tennessee Valley Authority's (TVA's) Tellico
Reservoir does reach and can affect the Chilhowee tailwater elevations. This is
particularly noticeable during periods of little or no flow from Chilhowee.
1

Normally, TVA's Tellico/Fort Loudon Reservoir fills to elevation 812.8 feet by mid-
April, holds at 812.8 feet through the end of October, drops to 808 feet by the
beginning of December, and holds at 808 feet through the end of March. Graphs
showing the tailwater elevation and total Chilhowee discharge for the time period
of 1998 through 2002 are presented in Attachment 1. These graphs illustrate
that during periods of little or no flow, the backwater from TVA's Tellico Reservoir
reaches the Chilhowee Dam. These graphs also show that in general, the
Chilhowee tailwater elevation varies from 812 feet to 814 feet from mid-April
through the end of October 31 and from 808 feet to 812 feet from the beginning
of December through March, as the discharge from Chilhowee varies from
12,000 to 0 cfs.
The combined effects of the excavated tailrace and the influence of Tellico
Reservoir elevations result in a situation where there is no free-flowing river
below Chilhowee Dam. From an aquatic habitat perspective, the excavated
tailrace remains watered under all combinations of operating conditions at both
Chilhowee and Tellico, including periods of no flow from Chilhowee. Changes in
habitat conditions within the tailwater are generally limited to changes in water
depth (primarily a function of Tellico Reservoir elevations) and changes in
velocity (primarily a function of discharge from Chilhowee).
Tapoco would note that as part of the anticipated settlement agreement with the
Department of Interior regarding Section 18 issues at the Tapoco Project,
Tapoco expects to be undertaking surveys of fish in the Chilhowee tailwater area
within a few years of license issuance. Since these surveys will be developed
and carried out in consultation and close coordination with the US Fish and
Wildlife Service (USFWS) and Tennessee Wildlife Resources Agency (TWRA), it
seems likely that any information that the resource agencies believe is needed
regarding the status of buffalo populations in and around Chilhowee Reservoir
will be collected at that time.
3. Please describe whether a free flowing river habitat occurs below the Chilhowee
Development dam as a result of TVA seasonal water level manipulation in the Tellico
Reservoir, and if so, describe the timing and duration of these changes, the approximate
depth of such habitat, and if any riffle areas are formed in this free-flowing stream
segment.
As described in AIR Response No. 2, there is no free flowing riverine stretch of
river below the Chilhowee Dam. The stretch of river extending from Chilhowee
Dam downstream approximately 3,000 feet is an excavated tailwater channel
that behaves like a pool in which the water level is most affected by TVA's Tellico
Reservoir. The water depths at the centerline of Chilhowee tailrace range from
20 to 22 feet from April through October, and 16 to 22 feet from December
through March. In both periods, the lower depth is the tailwater elevation from
the Tellico Reservoir extending to the Chilhowee tailrace and no flow from
2
Chilhowee, while the higher depth is due to turbine discharge up to about 12,000
cfs from the Chilhowee operations.
4. Staff is unable to identify the sources for some of your data used in the license
application to characterize aquatic resources reported in the Chilhowee Development
tailrace area and the specific areas where the sampling collections were made. Please
provide copies of the following documents to assist staff in determining Tapoco Project
effects on vertebrate and invertebrate resources in the Project-affected areas below the
Chilhowee Development dam and for surrounding areas:
(a) Dycus, D.L. and D.L. Meinert. 1991. Reservoir monitoring, 1990 summary
of vital signs and use impairment monitoring on Tennessee Valley Reservoirs. TVA,
Water Resources, Chattanooga, TN.
An unbound copy of this report is included (Attachment 2).
(b) Hill, D.M. 1976. Characteristics and determinants of the fisheries resources
of three cold tailwaters in Tennessee. Journal of Tenn. Academy of Sciences.
A copy of this paper is included (Attachment 3). The date on this paper was cited
wrong, and the correct citation is: Hill, D.M. 1980. Characteristics and
Determinants of the Fisheries Resources of Three Cold Tailwaters in Tennessee.
Journal of the Tennessee Academy of Science. Vol. 55, No. 4, pp. 130-136.
(c) TVA. 1998b. Aquatic ecological health determinations for TVA reservoirs-
1997: an informal summary of 1997 vital signs monitoring results and ecological health
determination methods. Tennessee Valley Authority, Water Management. Knoxville, TN.
An unbound copy of this report is included (Attachment 4).
5. Table 6.5-40 does not identify the source of the data and year(s) of sampling used
to compile the table. Please identify the data source, the year(s) the data was collected,
and the specific locations for the fish species captured in the Chilhowee Development
tailwater.
The source of Chilhowee data is Hill,1980, see reference above. Hill's paper
provides figures with sample locations, and the data used in DEA Table 6.5-40
are from Table 3, p.135 of the Hill paper. Specifically, Tapoco used the fish
ranking from "Upper" Chilhowee tailwater area in Table 3, which was collected on
October 2, 1974. Cheoah and Calderwood tailwater data are from Normandeau
Associates, Inc. (NAI) collections in June 2001. See Tables 6-2 and 6-6 in NAI's
2002 "Aquatics Study 1: Reservoir and Tailwater Fishery Assessment" for the
data source (DEA Appendix E-2.2).
3

6. On page 62 of the Aquatics Study 1: Reservoir and Tailwater Fishery, you have
identified the fish listed in Table 6-13 as those captured in the Tellico Reservoir in 1999.
Please identify the source of the data and provide copies of the source material used to
prepare Table 6-13 and 6-14 on pages 64 and 65 of the Aquatics Study 1.
The data source for the fish data provided in Table 6-13 of Aquatics Study 1 is
Dycus and Baker, TVA 2000. Aquatic Ecological Health Determinations for TVA
Reservoirs -- 1999. An Informal Summary of 1999 Vital Signs Monitoring Results
and Ecological Health Determination Methods. An unbound copy of this report is
included (Attachment 5). Table 6-13 of Aquatics Study 1 corresponds to Table
22, in Appendix E of the TVA 2000 report cited above. Table 6-14 of Aquatics
Study 1 corresponds to Table 22 in Appendix D of the TVA 2000 report.
7. Please identify the numbers of black buffalo and smallmouth buffalo captured in
fish collections from the Tellico Reservoir in 1999 that are shown in Table 6.5-41 and the
source of the data for the table. Please provide any additional information you may have
concerning capture and movement of black buffalo and smallmouth buffalo into Abrams
Creek or any other tributaries to the Chilhowee Development reservoir and for any
tributaries to the Tellico Reservoir (especially for Citico, Cochran and Mulberry Creeks
located immediately below the project boundary).
The numbers of black and smallmouth buffalo presented in DEA Table 6.5-41
were derived from Table 22 of Appendix E of TVA's 2000 report, cited above
under AIR Response No. 6, which was the source of this data.
Some additional information on buffalo populations in the vicinity of Tellico
Reservoir can be found in the Fishes of Tennessee by Etnier and Starnes, 1994,
notes on black buffalo. In addition, Mark Cantrell of the USFWS, Asheville
Office, suggests that TVA and/or TWRA may have some information on buffalo
species from sampling done at Citico Creek, a tributary to Tellico Reservoir. The
USFWS also suggests that there may be some additional information on buffalo
populations in some of the tributaries in the Great Smoky Mountains National
Park that was collected as part of the All Taxa Biodiversity Inventory program.
However, Tapoco has been unable to obtain any of this information, or to
determine what, if any data of interest may actually be available.
Tapoco would again note that as part of the anticipated settlement agreement
with the Department of Interior regarding Section 18 issues at the Tapoco
Project, Tapoco expects to be undertaking surveys of fish in the Chilhowee
tailwater area within a few years of license issuance. Since these surveys will be
developed and carried out in consultation and close coordination with the
USFWS and TWRA, any information that the resource agencies believe is
needed regarding the status of buffalo populations in and around Chilhowee
Reservoir will be collected at that time.
4
8. Santeetlah Creek, a tributary to the Santeetlah Reservoir which comprises about
17 percent of the drainage area of the Santeetlah Reservoir, was selected by you as a
template stream for calculating base flow and disturbance flow regimes to be developed,
and ultimately released into the Cheoah River bypassed stream reach under any new
license that is issued for the Project. Please provide your reasons for selecting
Santeetlah Creek as your template stream. Please provide your reasons for selecting the
low pulse threshold (average of the monthly 25th percentile flows) of Santeetlah Creek
flows (see pages 271 of Part 2: Ecological Analyses of Flow Regime and Flow
Management Alternatives and 8.1-19 of the DEA) for determining the base flow for the
Cheoah River bypassed reach. Also provide your reason for selecting Santeetlah Creek
and its high flow event magnitude and frequency for scaling and developing the proposed
disturbance flows to be released into the Cheoah River bypassed stream reach for the
Project.
The questions posed by FERC staff in AIR No. 8 do not lend themselves to
simple responses, and in fact, Tapoco believes that most of the issues raised in
this AIR are best addressed by referring FERC staff to existing material in the
two-part instream flow study report entitled "Flow Regime and Aquatic Habitat
Assessment for the Cheoah River Downstream of Santeetlah Reservoir North
Carolina, Parts 1 and 2" (Instream Flow Study Report) by NAI, published April
2002 (Appendix E-2.1 of the DEA). In addition to the specific references outlined
below, Tapoco would like to note that a "technical memo" was prepared by NAI
and informally shared with the Fish and Aquatics Workgroup and Resource
Agency Group (RAG) as part of ongoing discussions within the workgroups about
study results and appropriate flow regime options for the Cheoah River.
Section 5.2, of Part 1 of the Instream Flow Study Report and especially the
references cited therein (including Figure 5-1 A-D) provide a conceptual
framework with which NAI evaluated several flow management options
requested by Participants, including the Tapoco proposal. Cited literature found
within the body of this review is presented in a bibliography for convenience.
Figure 2-1, page 15, of Part 2 of the Instream Flow Study Report provides a
comparison matrix of hypothesized changes in channel structure and formative
agents describing potential future responses to changes in base flow magnitude
and peak flow intensity. These relationships, derived from literature cited in
Section 2.2.3, formed part of the rationale for scaling both high and low flow
components of the Tapoco proposal.
Panels in Figure 4-1 through 4-4 beginning on page 26 of Part 2 of the Instream
Flow Study Report illustrate changes in the longitudinal variation of flow
depending on fixed release rates from the dam interacting with natural flow
accruals from the lower watershed. These relationships display differences in
longitudinal flow regime variability over monthly to inter-annual time scales.
5
P
Discussions that lead to the Tapoco alternative intensify in Section 6.2 on page
81 of Part 2 of the Instream Flow Study Report. This part of the assessment
stressed the altered context for flow management in the basin, the importance of
considering original versus "apparent" stream size due to location of dam in the
watershed (serial discontinuity concept, Ward and Stanford 1983), and risk of
replacing one set of constraints on the system with another, neither of which
might satisfy the major objectives of biodiversity preservation and enhancement.
Also mentioned were the importance of identifying and replacing services once
provided by the lost natural context of the basin (Allen and Hoekstra 1992) and
using natural subsidies where possible to replace those lost services (Stanford et
al. 1996, Poff et al. 1997). Figures 6-7 and 6-8 in Part 2 of the Instream Flow
Study Report illustrate flow regime effects considering an early version of the
proposal, which would have tracked Santeetlah Creek flow closely. Modifications
to ease logistic constraints on Tapoco were then applied as discussed later in
Part 2 as mentioned in the FERC AIR No. 8.
Pages 26 and 27 of the Addendum to Appendix 2 in Part 2 of the Instream Flow
Study Report show elevations and locations of thermal loggers in Santeetlah
Creek above the reservoir.
AIR No. 8 above, cites page 271 of the Response to Comments section in Part 2
of the Instream Flow Study Report, regarding use of Santeetlah Creek as a
"template" stream for the Tapoco proposal. Discussion of the proposal actually
begins earlier on page 266 and should be followed through entirely in order to
view all the reasons used in developing the Tapoco alternative.
The 25th percentile low pulse threshold from Indicators of Hydrologic Alteration
Analysis (IHA, Richter et al. 1996) has been used elsewhere as an incipient
threshold for the onset of low flow periods in regime analysis and water resource
planning, including the Range-of-Variability analysis that is a formal extension of
IHA. It should be noted that the monthly percentile statistics were examined in
order to craft a base flow release schedule that would "switch" at appropriate
times of the year, thus providing a strong seasonal contrast that is presently
missing from the upper most portion of the bypass reach. However, the flow
rates selected are not strictly monthly 25th percentiles, rather, they were crafted
around the seasonal variability seen in those data.
With respect to the disturbance component of the Tapoco flow regime, in
response to ongoing discussions with the Fish and Aquatics Workgroup and
RAG during discussions of flow management, NAI prepared some additional
information that was shared informally with members of the Workgroup. Since at
the time this "Disturbance Flow Regime Commentary" was developed it was
considered an extension of on-going work and workgroup discussions, the
original material was distributed informally to the workgroups for further
discussion. Outcomes from those discussions then contributed to the alternative
proposed by Tapoco in the DEA. However, to help FERC better understand the
6

discussion and thinking that went into the Tapoco alternative, a copy of the
"Cheoah River Disturbance Flow Regime Commentary" prepared by NAI and
shared with the Fish and Aquatics Workgroup and Resource Agency group is
included with this letter (Attachment 6). The version enclosed herein is a slightly
edited version to help respond to questions raised in AIR No. 8. Edits were
generally cosmetic or were made to focus on the AIR. No substantive details
were omitted.
9. The DEA identifies on page 6.4-14 that the water quality of West Buffalo Creek (a
tributary to the Santeetlah Reservoir) was impaired and does not meet North Carolina
Department of Water Quality's 303(d) designated use specified in the state water quality
standards. Please provide a description of the water quality standards that were violated
and provide them in the same detail as was done for the Calderwood bypass description
given on page 9.1-3 of the DEA. Also, please identify where the water quality samples
were collected by the State for West Buffalo Creek and the date of collection.
West Buffalo Creek (280 acres beginning at State Route 1148) is listed on North
Carolina's 2002 Impaired Waters List (303(d) list) as partially supporting the
classified uses of the water - aquatic life/secondary recreation and primary
recreation (Classes B and Tr). The North Carolina Division of Water Quality
(NCDWQ) lists the cause of the impairment as nutrients and the potential source
of impairment as aquaculture. North Carolina's Impaired Waters List is divided
into seven assessment categories. West Buffalo Creek is a Category 5
impairment. Waters included in Category 5 are "impaired for one or more
designated uses by a pollutant(s) and requires a TMDU. "Pollutant" as defined
by EPA means "dredged spoil, solid waste, incinerator residue, sewage,
garbage, sewage sludge, munitions, chemical wastes, biological materials,
radioactive materials, heat, wrecked or discarded equipment, rock, sand, cellar
dirt and industrial, municipal, and agricultural waste discharged into the water". A
priority of High, Medium, or Low has been assigned to all waters in Category 5.
The NCDWQ has assigned a low priority to West Buffalo Creek. Tapoco
understands from NCDWQ that a low priority was assigned to West Buffalo
Creek because many of the trout farms that currently discharge into West Buffalo
Creek are being bought out.
Identifying where the water quality samples were collected by the state and the
date of collection is a bit more difficult to answer. Tapoco understands that the
NCDWQ uses many information sources and available data in preparing the
303(d) list - the previous 303(d) list, Basinwide Water Quality Plans and
Assessment Reports, 305(b) reports, 319 NPS Assessments, etc.
Tapoco has included several reports that FERC staff may find useful in this
regard. NCDWQ's Basinwide Assessment Report, Little Tennessee River (April
2000) pages 15-16 and 48-49 (Attachment 7), reports that in response to citizen
complaints regarding water quality, the NCDWQ conducted a special study April
through October 1993 (NCDEHNR 1994), which determined that nutrient loading
7
from upstream trout farms enhanced algal blooms observed on West Buffalo
Creek. Monitoring sites were located upstream and downstream of the trout
farms on West Buffalo Creek.
A second special study was conducted from April through October 1999
(NCDENR 2000) (Attachment 8). Monitoring was performed twice monthly at
seven stream sites and eight reservoir sites. This study determined that the
mainstem of Santeetlah Reservoir was continuing to support its designated uses.
However, the West Buffalo Creek arm was determined to be impaired and only
partially supporting its uses for swimming and biological integrity. Figure 32 in
this report shows three monitoring sites on Santeetlah.
Finally, the FERC should refer to the Little Tennessee River Basinwide Water
Quality Plan, Chapter 4 (Attachment 9) for information regarding water quality
monitoring that NCDWQ has undertaken at Santeetlah Reservoir.
10. On page 9.1-3 of the DEA, you say that TVA has undertaken measures to increase
dissolved oxygen (DO) levels in the water before it is released downstream from the
Fontana Dam. Please provide information on measures TVA has used or continues to
use to increase DO in water released from the Fontana Dam.
According to TVA's website "TVA uses turbine venting to improve the quality of
water released from Fontana Dam. This technology introduces airflow into low-
pressure zones just below the turbines to create many small air bubbles.
Oxygen from the bubbles is absorbed into the oxygen-poor water as it flows
through the turbines."
This information can be found at the following web address:
http://www.tva.com/environment/water/rri triblist.htm#fontana
The website also discusses oxygen levels in tailwater areas and the solutions to
improve low DO. The direct link to this discussion follows:
http://www.tva.com/environment/water/rri oxy.htm
8
In addition to the information provided in response to the additional information
request, Tapoco offers the following clarifications and corrections to the License
Application, dated February 2003:
Exhibit A
In Table 2.3-3 (Chilhowee Development, Proposed Unit Capacities) on page A-
25, the Generator Description in KW should be 21,420 for each unit, totaling
64,260.
Exhibit D
Section 5.2.1 (Fair Value) on page D-1 includes the statement, "Anticipated
capital investments in the Project through the expiration of the existing license,
February 28, 2005, are included in [the reproduction cost estimate]." This
statement is not correct and should be deleted. The reproduction cost estimate
is based only on original costs as of December 31, 1959. In producing this
estimate, additions and deletions since 1959 were not included.
In Table 5.1-1 (Tapoco Project, Original Cost as of 12/31/59) on page D-2, the
column 'Santeetlah to Alcoa Main Transmission' is inappropriately labeled. The
title of this column should read, 'Transmission Plant'. The costs in this column
include transmission lines and equipment at all 4 developments.
The footnote to Table 5.1-1 (Tapoco Project, Original Cost as of 12/31/59) on
page D-2 is not correct. The footnote should read, "Includes transmission lines
that were subsequently removed from the Project per FERC Order issued March
21, 2001."
For clarification, footnote (c) to Table 5.2-1 (Estimated Fair Value of the Tapoco
Project) on page D-3 should read, "Estimated depreciation is based on
expenditures as of year end 2001; does not include external or functional
obsolescence."
In Table 5.2-1 (Estimated Fair Value of the Tapoco Project) on page D-3,
Transmission Estimated Physical Depreciation should be $64,041,075;
Transmission Estimated Fair Value should be $1,387,368; Total Estimated
Physical Depreciation should be $570,513,568; and Total Estimated Fair Value
should be $105,153,631. These values were slightly off due to a transposition of
numbers in the original calculation.
In accordance with the changes to Table 5.2-1, Section 5.2-1 on page D-1 has
been modified and should read, ""Fair value" as that term is used in the FPA and
for the purpose of this application, is calculated as the present cost of project
reproduction less estimated depreciation. "Fair value" does not mean "fair
market value" but rather is a specialized calculation of a company's unrecovered
capital investment in today's dollars. The Handy-Whitman Cost Index (Index), a
standard tool used in the utility industry to estimate the reproduction costs of
9
utility assets, such as the project works, has been used to estimate the Project
reproduction costs in 2002 dollars. The reproduction cost estimate is based only
on original costs as of December 31, 1959. In producing this estimate, additions
and deletions since 1959 were not included. For the purposes of this application,
plant depreciation has been estimated for each development and transmission
system separately. This shorthand method divided the value of the accumulated
depreciation by the total plant cost as of year end 2001, and multiplied by 100.
Applying these percentages to each reproduction cost (Table 5.2-1) for Tapoco,
developed using the Index, suggests that an estimate of the fair value of the
Tapoco Project is $105,153,631. (No allowance has been made for external or
functional obsolescence.) Adding $105,153,631 to the original cost of the land
within the Project, $2,784,125, produces a total fair value estimate for the Project
of $107,937,756. It must be noted that the foregoing is a rough calculation of fair
value and that more precise calculations may be possible. 2001 numbers for
depreciation and total plant cost were used because they provide a more realistic
ratio than the 2002 numbers for depreciation and total plant cost, due to the
distorting effect of 2002 costs. The estimated fair value (within the Project
boundary) for the Project is shown in Table 5.2-1."
For clarification, footnote (a) to Table 5.2-2 (Estimated Net Investment in the
Tapoco Project) on page D-3 should read, "All dollars reflect actual cost and
accumulated depreciation as of December 31, 2002."
Revised pages D-1 through D-3 are presented in Attachment 10.
10
Tapoco Project License Application
FERC No. 2169 NC & TN
5.0 Exhibit D - Statement of Costs and Financing
5.1 Original Costs of Project Developments
The original license application for the Project was filed in October 1954. Exhibit N of the
original license application contained estimated original costs of the Project as of September 30,
1954, as well as projected costs for the proposed Chilhowee Development.
Tapoco reported project costs to the FPC as required under the Federal Power Act (FPA). In
1961, following review by the FPC, Tapoco and the FPC agreed that the original cost of the
Project, as of December 31, 1959, was $43,580,576. A breakdown of this cost is shown in Table
5.1-1.
5.2 Estimated Take Over Costs as per Section 14 of the Federal Power Act
Section 14 of the FPA reserves to the United States the right to take over a non-publicly owned
project upon expiration of its license. In the event that such takeover is ordered by the
Commission, APGI would, pursuant to Section 14, be entitled to be reimbursed for its "net
investment," not to exceed "fair value," plus any "severance damages" suffered (see 16 U.S.C. §
807). At the time of the filing of this application, there was no indication that any federal
department or agency, state or municipality has or will recommend takeover or redevelopment of
the Project. Nonetheless, APGI hereby submits the basic information required by the
Commission's regulations that would be needed to quantify the compensation to be paid to APGI
pursuant to Section 14.
5.2.1 Fair Value
"Fair value" as that term is used in the FPA and for the purpose of this application, is calculated as
the present cost of project reproduction less estimated depreciation. "Fair value" does not mean
"fair market value" but rather is a specialized calculation of a company's unrecovered capital
investment in today's dollars. The Handy-Whitman Cost Index (Index), a standard tool used in the
utility industry to estimate the reproduction costs of utility assets, such as the project works, has
been used to estimate the Project reproduction costs in 2002 dollars. The reproduction cost
estimate is based only on original costs as of December 31, 1959. In producing this estimate,
additions and deletions since 1959 were not included. For the purposes of this application, plant
depreciation has been estimated for each development and transmission system separately. This
shorthand method divided the value of the accumulated depreciation by the total plant cost as of
year end 2001, and multiplied by 100. Applying these percentages to each reproduction cost
(Table 5.2-1) for Tapoco, developed using the Index, suggests that an estimate of the fair value of
the Tapoco Project is $105,153,631. (No allowance has been made for external or functional
obsolescence.) Adding $105,153,631 to the original cost of the land within the Project,
$2,784,125, produces a total fair value estimate for the Project of $107,937,756. It must be noted
that the foregoing is a rough calculation of fair value and that more precise calculations may be
possible. 2001 numbers for depreciation and total plant cost were used because they provide a
more realistic ratio than the 2002 numbers for depreciation and total plant cost, due to the
distorting effect of 2002 costs. The estimated fair value (within the Project boundary) for the
Project is shown in Table 5.2-1.
D-1 Revised July 23, 2003
Table 5.1-1: TAPOCO PROJECT - Original Cost - as of 12/31/59
v
N
M
a
c`
N
W
N
O
O
w
FERC Account
Number Description Cheoah
Development Santeetlah
Development Calderwood
Development Transmission Plant' Chilhowee
Development Total
I ntangible Plant
303 NEscellaneous Intangible Plant $ 806,410 $ - $ 909,356 $ - $ - $ 1,715,766
Product ion Plant - Hydraulic
320 Land and Land Rights $ 69,951 $ 422,634 $ 55,273 $ - $ 2,236,267 $ 2,784,125
321 Structures & Improvements $ 1,270,642 $ 265,353 $ 1,080,850 $ - $ 429,923 $ 3,046,768
322 Reservoirs, Dams, and
Waterways $ 5,031,682 $ 7,267,577 $ 5,290,525 $ - $ 5,321,889 $ 22,911,673
323 Water Wheels, Turbines and
Generators $ 1,769,327 $ 363,232 $ 1,119,881 $ - $ 2,933,123 $ 6,185,563
324 Accessory Electric Equip. $ 209,458 $ 102,626 $ 164,824 $ - $ 509,171 $ 986,079
325 Miscellaneous Power Plant
Equipment $ 68,221 $ 36,167 $ 102,460 $ - $ 123,696 $ 330,544
26 Roads, Railroads &Bridges $ 61,651 $ 21,047 $ 45,774 $ - $ 33,007 $ 161,479
Transmission Plant
340 Land and Land Rights $ - $ - $ - $ 112,847 $ - $ 112,847
342 Structures and Im rovements $ - $ - $ - $ 64,323 $ - $ 64,323
3,43 Station Equipment $ - $ - $ - $ 2,713,732 $ - $ 2,713,732
344 Towers and Fixtures $ - $ - $ - $ 1,087,230 $ - $ 1,087,230
346 Overhead Conductors & Devices $ - $ - $ - $ 691,797 $ - $ 691,797
349 Roads and Trails' $ - $ - $ - $ 33,486 $ - $ 33,486
General Plant
371 Structures and'Improvements $ 15,559 $ 3,453 $ 67,018 $ - $ 3,338 $ 89,368
372 Office Furniture-and Equip. $ 6,248 $ 1,999 $ 52,564 $ - $ 1,360 $ 62,171
373 Transportation Equipment $ 6,342 $ 1,360 $ 58,743 $ - $ 1,200 $ 67,645
374' Stores Equipment $ - $ - $ 5,820 $ - $ - $ 5,820
375 Shop Equipment $ 5,990 $ - $ 15,006 $ - $ - $ 20,996
376 Laboratory Equipment $ - $ - $ 8,448 $ - $ 63 $ 8,511
377 Tools and Work Equipment $ 9,580 $ 37,778 $ 17,663 $ - $ 660 $ 65,681
378 Communication E ui ment $ 14,681 $ 29,458 $ 265,517 $ - $ 102,803 $ 412,459
379 Miscellaneous E ui ment $ 1,654 $ 3,719 $ 16,640 $ - $ 500 $ 22,513

Total $ 9,347,396 $ 8,556,403 $ 9,276,362 $ 4,703,415 $ 11,697,000 $ 43,580,576
a. Include transmission lines that were subsequently removed from the Project per FERC Order issued March 21, 2001.
Tapoco Project
FERC No. 2169 NC & TN
License Application
Table 5.2-1: Estimated Fair Value of the Tapoco Project'
Development Reproduction Cost Estimated Physical
Depreciation` Estimated Fair Value
Santeetlah $164,489,425 $133,317,538 $31,171,886
Cheoah $193,341,785 $168,845,638 $24,496,147
Calderwood $193,541,494 $157,777,724 $35,763,771
Chilhowee $58,866,052 $46,531,593 $12,334,458
Transmission $65,428,443 $64,041,075 $1,387,368
Total $675,667,199 $570,513,568 $105,153,631
a. No attempt has been made to determine the current fair market value of real estate within the Project.
b. Based on Handy-Whitman Cost Index, all dollars are 2002.
c. Estimated depreciation is based on expenditures as of year end 2001; does not include external or functional
obsolescence.
d. Value only includes Transmission Equipment included within the Project as defined.
5.2.2 Net Investment
The FPA generally defines a licensee's "net investment" in a project as the original cost of the
project, plus additions and betterments, minus depreciation and other amounts (See 16 U.S.C. §
796(13)). APGI's net investment in the Project, as reflected in APGI's books as of December 31,
2002, was $32,659,998 as shown in Table 5.2-2.
Table 5.2-2: Estimated Net Investment in the Tapoco Project'
Development Total Plant Cost Accumulated
Depreciation` Net Book Value
Santeetlah $30,276,767 ($16,925,532) $13,351,235
Cheoah $19,387,146 ($18,434,777) $952,369
Calderwood $33,312,395 ($18,154,220) $15,158,175
Chilhowee $17,915,091 ($14,770,982) $3,144,109
Transmission Plant $2,206,580 ($2,152,470) $54,110
TOTAL COST $103,097,979 ($70,437,981) $32,659,998
a. All dollars reflect actual cost and accumulated depreciation as of December 31, 2002.
b. For each development, the total plant cost includes: development specific (a) hydraulic plant costs, (b)
general plant costs, and (c) transmission plant costs (applicable only at Calderwood) and a prorated amount of
total Project (a) substation costs, (b) miscellaneous intangible plant costs, and (c) administrative and general
equipment costs.
c. For each development, the accumulated depreciation includes: development specific accumulated
depreciation and a prorated amount of total Project substation, miscellaneous intangible plant, and administrative
and general equipment accumulated depreciation.
D-3 Revised July 23, 2003
E
AJune 3, 2003

Mr. John Dorney
NC Division of Water Quality
401 Wetlands Certification Unit
1650 Mail Service Center
Raleigh, NC 27699-1650
Re: Payment of Published Notice of 401 Certification
Dear Mr. Dorney:
Alcoa Primary Metals
Alcoa Power Generating Inc.
Tapoco Division
300 North Hall Road
Alcoa, TN 37701-2516 USA
Tel: [phone]
Fax:[phone]
J41
/? YSECTIO i
Enclosed please find a receipt for payment of The Graham Star and Smoky Mountain Times per
your request.
If you have any questions, please call me at 865-977-3321.
Sincerely,
Sue Fugate
Property Coordinator
Enclosure

LEBOEUF, LAMB, GREENE & MACRAE
L. L. P.
A LIMITED LIABILFLY PARTNERSHIP INCLUDING PROFESSIONAL CORPORATIONS
NEWYORK 1 875 CONNECTICUT AVE., N.W
WASHINGTON. D.C. SUITE 1 200
ALBANY
BOSTON WASHINGTON, D.C. 20009-5728
DENVER
[phone]
HARRISBURG
HARTFORD FACSIMILE: [phone]
HOUSTON E-MAIL ADDRESS: DBENNQa LLGM.COM
JACKSONVILLE
WRITERS DIRECT DIAL [phone]
LOS ANGELES
NEWARK WRITERS DIRECT FACSIMILE: (202) 986-8 102
PITTSBURGH
SALT LAKE CITY
SAN FRANCISCO
March 18, 2003
4
,! lJ
LONDON
(A LONDON -BASED
MUL'rINATI ON AL PARTNERSHIP)
PARIS
BRUSSELS
JOHANNESBURG
(PTY) LTD.
MOSCOW
RIYADH
AFFILIATED OFFICE)
TASHKENT
BISHKEK
ALMATY
BEIJING
WETLANDS 1401('aROLIV
MAR 2 0 2003
Mr. John Dorney
North Carolina Division of Water Quality WATER QUALITY SECTION
Parkview Building
2321 Crabtree Blvd.
Raleigh, NC 27604
Re: Agreement to Extend Time to Process Clean Water Act Section 401
Filing to Support Relicensingof Tapoco Project (FERC Project No.2169)
Dear Mr. Dorney:
APGI Inc. filed an application for relicensing of its Tapoco hydroelectric project
with FERC on February 21, 2003. As required by FERC regulations, APGI first filed an
ti:laL tlJlt for VV'atcr qr'r,'lutl:ity V L crt::Tl:VUt r:vn rr,", thv C+nt- n f North C_=!ia v-'n February 1 Q, 711(1';
C'iN??.?. ??u?'v vi i As you know, under the applicable North Carolina regulations, the State has 60 days from the
date of filing to grant or deny the application, or in this case until April 20, 2003. By this letter
and pursuant to the authority at 15A NCAC 02H. 0507(a)(1) of the regulations, APGI
memorializes its agreement with the State of North Carolina to extend the time for processing its
application until October 20, 2003. This extension will allow extra time for the productive
settlement negotiations between APGI , the State and other relicensing participants to reach
conclusion.
Mr. John Dorney
March 18, 2003
Page 2
Please feel free to contact me if you have any questions. I can be reached at (202)
986-8047.
Y,
idall Bend
Counsel
DRB All
cc: Ron McKittrick
Norman Pierson
MEMORANDUM
TO: John Dorney Regional Contact: Larry Fr ost
Non-Discharge Branch WQ Supervisor:
Date:
SUBJECT: WETLAND STAFF REPORT AND RECOMM ENDATIONS
1
t
Facility Name Alcoa Tapoco Hydroelectric FERC No. 2169 County Graham -
i
Project Number 03 0191 County2 Swain
Recvd From APP Region Asheville
Received Date 2/19/03 Recvd By Region
Project Type
Certificates Stream Stream Impacts (ft.)
Permit Wetland Wetland Wetland Stream Class Acres Feet
Type Type Impact Score Index Prim. Supp. Basin Req. Req. ME
FT-@- N F- 2-190-(22) r _c TR 40,404. F ? ?- ?-
Mitigation Wetland
MitigationType Type Acres Feet

Is Wetland Rating Sheet Attached? Q Y 0 N Did you request more info? Q Y 0 N
Have Project Changes/Conditions Been Discussed With Applicant? Q Y Q N
Is Mitigation required? Q Y O N Recommendation: Q Issue 0 Issue/fond 0 Deny
Provided by Region: Latitude (ddmmss) Longitude (ddmmss)
Comments:
A flow regimen should be established for the section of the Cheoah Rover ,which is bypassed by the
pinstock from the Santeetlah Lake dam to the Little Tennessee River, inorder to support aquatic fife,
Procedures should be established for the release of sediment from behind impoundment dams,
these release events should coincide with storm events,
cc: Regional Office
Central Office Page Number 1
i
iage Check List
Date: 2 3
Project Name: C
DWQ#:
County: C Uf V
To: ?--
ARO Mike Parker ? WaRO Tom Steffens
? FRO Ken Averitte ? WiRO Noelle Lutheran
El MRO Mike Parker El WSRO Cyndi Karoly (Central Office)
El RRO Steve Mitchell
From:
Telephone: (919) 3 l6 v?
e file attached is being forwarded to your for your evaluation.
Please call if you need assistance.

? Stream length impacted
? Stream determination
? Wetland determination and distance to blue-line surface waters on USFW topo maps
? Minimization/avoidance issues
? Buffer Rules (Meuse, Tar-Pamlico, Catawba, Randleman)
? Pond fill
? Mitigation Ratios
? Ditching
? Are the stream and or wetland mitigation sites available and viable?
? Check drawings for accuracy
? Is the application consistent with pre-application meetings?
? Cumulative impact concern
Comments:
pr
\p?OF W A T?9pG
? r
February 19, 2003
The Graham Star
P.O. Box 68
Robbinsville, NC 28771
Attn: Legal Ad Department
Dear Sirs:
Re: Public Notices
Please publish the attached Public Notice one time in the sections set aside for Legal Advertisements in
your newspaper. The publication should run on or before February 28, 2003. Please send the invoice for the
publications and three copies of the affidavit of publication to the address given below. Payment cannot be
processed without the affidavit of publication.
N.C. Division of Water Quality
Water Quality Section
2321 Crabtree Boulevard
Raleigh, NC 27604 Attn: John Dorney
If you have any questions, please telephone John Dorney at 919-733-9646.
n
hn R. Dorney '
ater Quality Ce ifi ation Program
cc: Asheville DWQ Regional DWQ Office
Central Files
File Copy
Steve Reid, Division of Water Resources
D. Randall Benn; LeBoeuf, Lamb, Greene and MacRae
Randall Overbey, President - Alcoa Power Generating, Inc.
NORTH CAROLINA DIVISION OF WATER QUALITY
PUBLIC NOTICE is hereby given that Alcoa Power Generating, Inc. has applied to the North Carolina Division of Water
Quality for a Water Quality Certification pursuant to Section 401 of the Federal Clean Water Act and Water Quality
Commission rules in 15A NCAC 2H 1300. The activity for this Certification is sought to renew the Federal Energy
Regulatory Commission (FERC) Permit for the Tapoco Hydroelectric Project (Santeetlah and Cheoah Dams in Graham
County. The applicant proposes to modify the operation of this project in order to protect downstream water quality uses
and standards including modifying the low flow release schedule in the bypass reach (Cheoah River) as well as other
measures for fish reintroduction and recreation.
The public is invited to comment on the above mentioned application to the Division of Water duality. Comments shall be
in writing and shall be received by the Division no later than March 28, 2003. Comments should be sent to the N.C.
Division of Water Quality, Non-Discharge Branch, 2321 Crabtree Boulevard, Raleigh, NC 27604, Attn: John Dorney (919-
733-9646 Fax: [phone]). A copy of the application is on file at the Division office at 59 Woodfin Place, Asheville,
North Carolina 28801 (Asheville Regional Office fax [phone]) during normal business hours and may be inspected
by the public.
Alan Klimek, P.E., Director
N.C. Division of Water Quality
Michael F. Easley, Governor
William G. Ross Jr., Secretary
North Carolina Department of Environment and Natural Resources
Alan Klimek, P.E., Director
Division of Water Quality
N. C. Division of Water Quality, 401 Wetlands Certification Unit,
1650 Mail Service Center, Raleigh, NC 27699-1650 (Mailing Address)
2321 Crabtree Blvd., Raleigh, NC 27604-2260 (Location)
[phone] (phone), 919-733-6893 (fax), (http://h2o.enr.state.nc.us/ncwetlands
0F W A TFgPG
? r
> =i
Michael F. Easley, Governor
William G. Ross Jr., Secretary
North Carolina Department of Environment and Natural Resources
Alan Klimek, P.E., Director
Division of Water Quality
February 19, 2003
The Smokey Mountain Times
P.O. Box 730
Bryson City, NC 28713
Attn: Legal Ad Department
Dear Sirs:
Re: Public Notices
Please publish the attached Public Notice one time in the sections set aside for Legal Advertisements in
your newspaper. The publication should run on or before February 28, 2003. Please send the Invoice for the
publications and three copies of the affidavit of publication to the address given below. Payment cannot be
processed without the affidavit of publication.
N.C. Division of Water Quality
Water Quality Section
2321 Crabtree Boulevard
Raleigh, NC 27604 Attn: John Dorney
If you have any questions, please telephone John Dorney at 919-733-9646.
TJR,.Dorney
Quality Certificatio Program
cc: Asheville DWQ Regional DWO Office
Central Files
File Copy
Steve Reid, Division of Water Resources
D. Randall Benn; LeBoeuf, Lamb, Greene and MacRae
Randall Overbey, President - Alcoa Power Generating, Inc.
NORTH CAROLINA DIVISION OF WATER QUALITY
PUBLIC NOTICE is hereby given that Alcoa Power Generating, Inc. has applied to the North Carolina Division of Water
Quality for a Water Quality Certification pursuant to Section 401 of the Federal Clean Water Act and Water Quality
Commission rules in 15A NCAC 2H 1300. The activity for this Certification is sought to renew the Federal Energy
Regulatory Commission (FERC) Permit for the Tapoco Hydroelectric Project (Santeetlah and Cheoah Dams in Graham
County. The applicant proposes to modify the operation of this project in order to protect downstream water quality uses
and standards including modifying the low flow release schedule in the bypass reach (Cheoah River) as well as other
measures for fish reintroduction and recreation.
The public is invited to comment on the above mentioned application to the Division of Water buality. Comments shall be
in writing and shall be received by the Division no later than March 28, 2003. Comments should be sent to the N.C.
Division of Water Quality, Non-Discharge Branch, 2321 Crabtree Boulevard, Raleigh, NC 27604, Attn: John Dorney (919-
733-9646 Fax: [phone]). A copy of the application is on file at the Division office at 59 Woodfin Place, Asheville,
North Carolina 28801 (Asheville Regional Office fax [phone]) during normal business hours and may be inspected
by the public.
Alan Klimek, P.E., Director
N.C. Division of Water Quality
N. C. Division of Water Quality, 401 Wetlands Certification Unit,
1650 Mail Service Center, Raleigh, NC 27699-1650 (Mailing Address)
2321 Crabtree Blvd., Raleigh, NC 27604-2260 (Location)
[phone] (phone), 919-733-6893 (fax), (http://h2o.enr.state.nc.us/ncwetlands
Triage Check List
Date: Project Name:
DWQ#: 0
County: &JcQ1f A J?A_.-
To: ""Er ARO Mike Parker ? Wa.RO Tom Steffens
? FRO Ken Averitte ? WiRO Noelle Lutheran
? MRO Mike Parker ? WSRO Cyndi Karoly (Central Office)
_ ? RRO Steve Mitchell
From:
Telephone : (919) 3 l 6 l C-
file attached is being forwarded to your for your evaluation.
Please call if you need assistance.
? Stream length impacted
? Stream determination
? Wetland determination and distance to blue-line surface waters on USFW topo maps
? Minimization/avoidance issues
? Buffer Rules (Meuse, Tar-Pamlico, Catawba, Randleman)
? Pond fill
? Mitigation Ratios
? Ditching
? Are the stream and or wetland mitigation sites available and viable?
? Check drawings for accuracy
? Is the application consistent with pre-application meetings?
? Cumulative impact concern
Comments: IzC? - (0,QD ayQ_ ' ?s dnS
? CUs Cc.ISS