20031242 Ver 2_More Info Received_20070713

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`~ Progress Energy
File# 13550A2
Ms. Tracey Wheeler
Washington Regulatory Field Office
US Army Coips of Engineers
Post Office Box 1000
Washington, NC 27889-1000
03 - 1 ~L.~-l a.. v 2
July 11, 2007
Subject: Requested Approval for Temporary Placement of Intake Pipe into Neuse River
ADDENDUM
Lee Steam Electric Plant
Carolina Power & Light Company d/b/a Progress Energy Carolinas
Dear Ms. Wheeler:
Carolina Power & Light Company d/b/a Progress Energy Carolinas submitted the subject
request for Section 10 authorization under NWP #12 to temporarily install an intake pipe into
the Neuse River on June 11, 2007. Within the Pre-Construction Notification Application
Fonn, Section VII. Impact Justification, reference was made to the Memorandum of
Understanding between DENR and USF&WS to support such temporary water
diversion/makeup in this cooperative document addressing the Quaker Neck Dam removal in
1996. By your request, enclosed is a copy of this agreement for your review and
consideration.
If you have any question or need any further information please contact Ms. Robin Bryson of
our Environmental Services Section at [phone].
Sincerely,
Tim Hill,
Plant Manager
Lee Steam Electric Plant
Enclosures
c: Ms. Cyndi Karoly (NCDWQ - 401 Unit)
~ L~ ~ t_5 U 1'J LS
JUL 1 3 2007
Progress Energy Carolinas, Inc.
Lee Steam Plant
1G77 Old Smithfield Road
Goldsborc, NC 27530
DENH ~ 'vVA7rrR 4UALITY
W~TL~~I^f At~j STC??!~".'.°.TE? ~RINCN

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~tICHAGL F. ~A-+L~Y
:~7TraRNBY GENERA.
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State of North Carolina
Deparrmenr of 3uGjice
i'. O, aOX E~9 Reply ta:
R.'~LE1GH
27Ci0.~-D~~I
TO: Joe Rippazd
Richard Whisnant
Guy Ste~anski
Mike Wicker
Kathryn Cooper
Boyd DeVann
John Moms
FltOivl: Anita LeVeaux Quigless
Assistant Attorney General
DATE: March 19, 1996
ItE: Quaker Neck Dam-Agreement
~i002
FVLE COPtl
Ani[e L. Quigless
Environmcn~al Division
Telephone: [phone]
FAX: [phone]
Please review the attached agreement. This draft includes proposed changes that were
submitted to my attention. I suggest that we set up a meeting to go over the Memorandum of
Agreement to be sure that this document addresses all of our concerns. We can then propose a
date and time to meet with Cl'&L in this regard. To that end my secretary will be calling all of
you to schedule a mutually convenient time and place to meet. Of course if you have any
questions please feel free to call.
~ 2 ~ X996

_ _ _~ ,._,.,...,,.,~~., ~ .Affirmarive Action Employer

07!16%02 TIIE 15:0 F~1?C 1 919 856 1556_ L'SF~VS-RALEIGH,~C i~j00~
MEMORANDUM OF AGREEMENT
BETWEEN
CAROLINA POWER & LIGHT COMPANY'
AND
NORTH CAROLINA DEPARTMENT OF ENVIRONMENT,
HEALTH AND NATURAL RESOURCES,
DIVISION OF ENVIRONMENTAL MANAGEMENT,
AND
UNITED STATES FISH and WILDLIFE SERVICE
Pream>?l~
The Parties hereinabove referenced have agreed to cooperate in a pzoject in conjunction
with the Coastal America Project (the "Project") to remove the Quaker Neck Dam, a dam owned
by the Carolina Power & Light Companm rica Brant frorn~ rthe USEPA and a $194,000t grant~from
at the expense of a $100,000 Coastal A g
the National Fish and Wildlife Foundation and the NC Marine Fisheries Commission (the
"Grant"). The Quaker Neck Dam is located in the Neuse River adjacent to CP&L's H.F. Lee
Steam Electric Plant (the Lee Plant ), for the purpose of provding~a reliable source of water for
cooling, fire safety and other service needs to the Lee Plant. According to the North Carolina
Department of Environment, Health and Natural Resources ("DEHNR"), and the United States
Fish and Wildlife Service's (USFWS) removal of the Quaker Neck Dam and construction of the
Weir (the Weir ), will increase by some l40 stream miles, more or less, the reach of the Neuse
River accessible to anadromous fish andveate ~ totthe Lee 1Plant forecotoling, fire safety and othler
providing that sarne reliable source o
service needs.
~~~>;y of the Proiect
The Project will have the following components:
(1) Work on the Project shall be by private contractors, retained and hired by CP&L
(Contractor), contractors including any subcontractors, will be hired to perform the
demolition and construction of the Weir. Funding is available and shall be provided to
CP&L for work on the Project by the Grant. Up to $35,000 shall be earmarked ao able
construction of the Weir and up to $192,000 for the demolition of the dam, p y
through a $100,000 Coastal America grant from the United States Environmental
Protection Agency (EPA) and a $194,000 grant from the National Fish and Wildlife
Foundation and the North Cazolina Marine Fisheries Commission. It is anticipated that
this level of funding is adequate. CP&L will designate a Project Representative for the
purposes of coordinating day-to-day activities such as review of submittals and
monitoring on-site activities. During the course of the Project, CP&L shall have ;Full
rights of access to monitor activities but shall have no obligation to do so-

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(2) All federal, state and local permits necessary to, and requited for, the lawful
conduct of the Project have been acquired by pEHNR at DEHNR's expense. The Federal
404 permit and State 401 water quality certification required to accomplish this project
have been obtained by DEHNR. As of September 1995, these permits are being modified
to address the dredging activity required in the Lee Plant's bypass canal (Bypass Canal).
This would be determined upon submittal of a work plan from the Demolition Team.
~p~y iollowiug rhP commotion of the Pr~jec ran fer to CP&L ~Y
permits ne ess _ __ continue- int nance of sh reline ili tion structures-- ~_r
w 1 've ure 'nt d t lac u to e
p~e~ent ction_of.the ,uake Neck Dam with respP~t to the T,ee lant, This provision
includes, without limitation, any permits fxom the United States Army Corps of Engineer
("GOE") which allow for maintenance dredging of the (Bypass Canal).
(3) Prior to the removal of the Quaker Neck Dam, the COE will design and the
Contractor will construct the Weir extending across the Bypass Canal for the purpose of
impounding water for the operational needs of the Lee Plant. The design specifications
have been prepared in consultation with CP&L, and have been approved by CP&L.
(4) The Contractor shall dredge the Bypass Canal in connection with the construction
of the Weir. 1 ~- ec ' a a e t t va
P& R,I'ior t cOrnmPT1CP. e t of dredQlll~• DEHNR is working with the COE to
modify the 404 permit to include the dredging activity.
(5) The Contractor shall deposit and dispose of the sediment, soil and other material
removed from the Bypass Canal ("dredged spoil") as part of the dredging project at a
suitable non-CP&L disposal site ("Disposal Site") or as erosion protection for the Weir
which shall be limited to the placement of 125 cubic yards of dredged spoil being placed
downstream from the Weir, in accordance with the federa1404 permit. The dredged spoil
must be appropriately drained prior to transportation to the Disposal Site.
(6) Construction of the Weir, shall be completed no later than four months upon
selection of a Contractor. Completion of construction of the Weir, shall be a condition
precedent to the commencement of demolition or removal of Quaker Neck Dam.
(7) Following construction of the Weir, CP&L shall inspect said Weir and notify
DEHNR that it meets its design specifications.
(8) Once item seven (7) above has been approved by CP&L, the Contractor shall perform
the following tasks as a part of the Project:
(a) demolition and removal of the Quaker Neck Dam down to the stream
bottom (the footing of the dam),
'004
(b) removal of the fish ladder connected with the Quaker Neck Dam (the
"Fish ladder"); and

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(c) removal of rip rap material currently located on the dam's apron to be later
used as erosion control on the stream banks.
(9) The Contractor shall remove all waste material resulting from the completion of
the foregoing tasks, including, but not limited to, debris generated by the destruction of
tl~e Quaker Neck Dam and the fish ladder ("demolition debris"), and the rip rap (with the
exception of rip rap needed for bank stabilization), or uniformly sized rocks, removed
from the downstream side of the Quaker Neck Dam.
(10) According to the federal 404 permit obtained by DEHNR for the Project, the
Contractor shall stabilise embankments and shorelines at the Project site immediately
following demolition of the Quaker Neck Dam. Subject to approval by CP&L, said
stabilization will be accomplished with rip rap (currently located on the dam's
downstream apron), by grading the slope adjacent to the fish ladder to a slope of 3:1 or
less, and by sowing the disturbed soil not covered with rip rap with fescue. Approval of a
sedimentation and erosion control plan by the Division of Land Resources would be
needed if activities of the Contractor to disturb one acre or more, of land on the project
site.
(11) The Contractor shall deposit and dispose of demolition debris and any other
excavated materials from the Project, in accordance with the federal 404 permit that has
been issued for the Project, except that used for shoreline stabilization, at the Disposal
Site. The demolition debris must be prepared such that it is acceptable to the Disposal
Site.
(12) CPBzL shall provide access to the bank of the Neuse River to the Contractor
adjoining the Lee Plant and shall use its best efforts to secure access to the other bank of
the Neuse River using existing agreements for access or existing easements held by
CP&L.
(13) The Contractor shall provide reinforcement to access roads or corridors to the
Quaker Neck Dam as necessary for heavy equipment.
(14) The Contractor shall provide crowd control and security, and shall establish and
enforce minimum safe distances for spectators. A security perimeter shall be established
to ensure the safety of spectators. The Contractor, in cooperation with local law
enforcement agencies, shall also develop and implement a crowd control and safety plan
prior to the commencement of demolition activity for CPBcL's approval prior to the
initiation of any demolition activities. if needed it is anticipated that assistance will be
provided by the North Carolina Wildlife Resources Commission, and the United States
Pish and Wildlife Service law enforcement personnel.
In addition to the foregoing eompoz~ents of the Project, CP&L, USFWS and DEHNR
acknowledge that it may be necessary for CP&L to place, fxom time to time, in the Neuse River
'1005

_ 07116. 0? TL~E 15:06 FAY 1 919 8561556 USFWS-R:ILEIGII,\C
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or the Bypass Canal, at or near the site of the Quaker Neck Dam, a temporary dam (the
"Temporary Dam") for the purpose of impounding water in a volume such that the intake pumps
at the Lee Plant will have available a supply of water sufficient to safaly and efficiently operate
the steam electric generators, with an adequate supply of water for other service needs, including
fire safety.
Terms and Con itions
USFWS and DEI-IN-R desire to remove the Quaker Neck Dam in order to enhance and
expand the habitat for anadromous fish in the Neuse River. CP&L would benefit by this removal
since it will decrease its maintenance liability while providing the same or greater utility as
previously provided by the dam at diminished costs and from the good public relations that will
accrue to CP&L for participating in a project focusing on enhancing environmental goals in the
Neuse River Basin. D)/HNR and USFWS recognize the contribution CP&L is making for the
public good and will work with CP&L to insure that CP&L receives public recognition for its
participation in the Project. The Contractor must agree to perform the work necessary to
complete the Project. CP&L has agreed to the demolition of the Quaker Neck Dam and agreed
to convey to the USFW5 atx~fe~~-all rights it has in waste material resulting from work
on the Project, including but not limited to dredged spoil and demolition debris, in exchange for
the construction by the Contractor not at CP&L's expense of a Weir in the Bypass Canal and the
cooperation of DEHNR and USFWS in obtaining proper permits for placement of a Temporary
Dam. The Temporary Dam would be necessary in the event of extreme low flow conditions in
the Neuse River following removal of the Quaker Neck Dam which could, albeit unlikely,
compromise the safe and efficient operation of the Lee Plant.
Therefore, the Parties have agreed to the following terms and conditions governing the
conduct and completion of the Project:
I, Authority
A. DEPINR represents that it has the statutory authority necessary and appropriate to
conduct the Project, including the authority to enter contracts, to sue and to be sued, and that it
has satisfied applicable provisions of Chapter 143 of the General Statutes and the Department of
Administration regarding its ability to enter into this Memorandum of Agreement.
B. DEHNR represents that it has satisfied all requirements for the Project imposed
by the North Carolina Environmental Policy Act, N.C. Gen_ Stat. §§113A-1, ~ ~e$„ and the
National Environmental Policy Act of 1969, 42 U.S.C. §§4321, gt s~
C. CP&L agrees to let contracts to build the Weir and demolish the dam ai the
expense of the Grant.
D. USFWS represents that it has the statutory authority necessary and appropriate to
accept all rights in demolition debris, dredged spoil, and all other residual or waste materials of
any type whatsoever resulting from the demolition of Quaker Neck Dam.
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II. Conditions Precedent
A USPWS and DEHNR agree that the Weir shall be sized and designed, and the
maintenance dredging in the Bypass Canal designed, to maintain water levels at the izttake pumps
of the Lee Plant sufficient to allow safe and efficient operation of the steam electric generators,
and also provide sufficient water for fire safety and other operational needs of the Lee Plant.
B. The Contractor agrees that as a condition precedent to demolition of the Quaker
Neck Dann it will submit in writing to CP&L for its approval detailed plans and specifications
(the "work plans") prepared by the Contractor for the demolition of the Quaker Neck Dam,
specifically:
a plan for the demolition which indicates how the dam will be removed,
ii. a detailed schedule specifying dates for each phase of demolition, removal
of debris, stabilization, etc. related to removal of the Quaker Neck Dam.
iii. a plan detailing safety measures that will be taken in connection with the
demolition, including any plans, training or actions required by federal or state
occupational safety or health laws or by the local or state fire marshal,
iv, a plan for the collection, recovery and disposal of demolition debris,
including without limitation the facility at which said debris will be disposed,
v. a plan specifying and locating logistical and support facilities which will
be required for the demolition, including vehicular access, security arrangements,
staging areas, and camping and sanitary facilities; and
C U5FWS and DEHNR have been responsible for applying for and obtaining all
federal, state, and local permits, licenses and other such documents necessary to conduct the
Project. These.permits include, a permit from COE pursuant to Section 404 of the Clean Water
Act, 33 U.S.C. § 1344, and certification from the State of North Carolina under Section 401 of
the Clean Water Act, 33 U.S.C. § 1341. All necessary federal, state, and local permits, licenses
or other such docuuments have been obtained in the name of DEIdNR as applicant, and proof of
issuance presented to CP&L, as a condition precedent of commencement of the Project.
X007

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III. Conveyance of Rights
CP&L at the time of generation of the waste conveys to USFWS all rights it has in
demolition debris, dredged spoil, and all other residual or waste materials of any type whatsoever
resultinc from the demolition of the Quaker Neck Dam.
IV, Obligations
A. CP&L shall enter into an agreement with a qualified contractor to dredge the
Bypass Canal, construct the Weir, and to demolish the Quaker Neck Dam. This work will be
financed through previously identified funding i.e. the Grant.
B. The Contractor as specified in the approved work plans, shall collect, remove and
properly dispose of all dredged spoil, demolition debris and all other solid waste generated as a
pari of or in connection with the Project, at an upland Disposal Site in compliance with the
federal 404 permit.
C. The Contractor shall restore and stabilize, to the extent required in the said work
plans, the banks of the Neuse River in the vicinity of the Quaker Neck Dam.
D. CP&L recognizes that maintenance of a certain minimum volume of water to the
intake pumps of the Lee Plant is essential to ensure safe and efficient operation as well as
provide sufficient water for fixe protection and other service needs. DEHNR and USFWS further
recognize that installation by CP&L of a Temporary Dam in the Neuse River to divert water to
the Lee Plant intake during low flow periods is an effective and economically efficient means of
ensuring an adequate water supply with minimal adverse environmental impacts. DEI~NR
agrees to fi ~ to CP&L written c ncurrence by rS WS th t install f a lam- m
by CP&L under e rg_e~~cond'tions is a~rKgpta DEITNR and USFWS have reviewed
CP&L's letter of October 21, 1993, to the COE regarding permitting installation of such a
Temporary Dam, and the COE's letter of November 22, 1993, to CP&L in response, copies of
which are attached hereto and incorporated herein. USFWS and DEHNR support the installation
of the Temporary Dam in the Neuse River and will work with the COE to make it immediately
available. USFWS and DEHNR further agree they will use their best efforts to expeditiously
provide any permits, licenses, approval, certifications, authorizations or other documents
required for the placement and use of the Temporary Dam when necessary, under low flow
conditions, to ensure sufficient water for the safe and efficient operation of the Lee Plant, fire
protection and other service needs.
E. D1;PINR and USFWS recognize that CP&L must withdraw water from the Neuse
River to ensure the safe and efficient operations of the Lee Plant. DEHNR and USFWS further
recognize that a study conducted by the COE entitled Coastal America Initiative -Investigation
of I~am Removal, revised in August 1993, describes the water elevations and volumes which
must be maintained to ensure reliable operation of the Lee Plant intake pumps. DEHNR and
USFWS further recognize that although not now foreseen, at some future time maintenance of
flows sufficient to assure safe and efficient operation of the Lee Plant could conceivably be
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jeopardized by competing water uses. DI/HNR and USPWS recognize that should such
competing uses arise, and consistent with each agency's statutory authority and rules, they will
use their best efforts to properly inform CP&L of such potential conflicts, will provide CP&L an
opportunity to submit comments on such competing uses, and will use their best efforts,
consistent with their statutory authority and rules, to ensure that the operations of the Lee Plant
are not impaired.
F. CP&L shall provide to the Contractor access to the Project site as necessary to
conduct the Project, provided that CP&L may impose reasonable security restrictions as are
required to ensure security of the Lee Plant and premises.
Cr. Upon completion of the Project, CP&L shall obtain all necessar<' permits,
authorizations or approvals for the performance of dredging in the Bypass Canal and Intake canal
("Intake Canal") as in its sole judgment is necessary to maintain the necessary capacity in the
Canals.
V .Insurance
The work under this MOA shall not commence until the Contractor has obtained all
required insurance and verifying certificates of insurance have been approved in writing by
CP&L. The Contractor shall purchase and maintain nr~~ insurans~ during the life of this
contract, upon the entire work at the site to the full insurable value thereof. This insurance shall
include the interests of CP&L, the Contractor, the subcontractors and subcontractors in the work
and shall insure against the perils of fire, extended coverage, and vandalism and malicious
mischief. Any deductible, if applicable to loss covered by insurance provided, is to be borne by
the Contractor. The Contractor shall obtain such additional insurance as may be required by
CF&L.
A. The Contractor shall provide or maintain in full force and effect at no cost to
CP&L for the duration of the Project the following minimum amounts of insurance, or shall
demonstrate to the satisfaction of CP&L in its sole discretion and judgment, financial assurance
providing protection equivalent to the following insurance:
Worker's Compensation insurance.
ii. Employers' Liability insurance in the minimum amount of $500,000 each accident
and $500,000 per employee for bodily injury by disease with a disease policy aggregate of
$1,000,000, or employer's liability insurance plus additional excess umbrella liability insurance
to meet these limits.
iii Commercial General Liability insurance with a minimum combined single limit
of $2,000,000 per occurrence for bodily injury and damage to property including contractual
liability, premise/operations, explosion hazard "~", collapse "C", underground property damage
hazard "U", products/completed operations, independent contractors, broad form property
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damage, and personal injury, and a minimum general aggregate amount of $4,000,000, or
commercial general liability insurance plus additional excess umbrella liability insurance to meet
these limits.
iv. Comprehensive automobile liability insurance covering bodily injuries or death in
a sum not less than $500,000 per person and $1,000,000 per occurrence and covering damages to
property in a sum of at least $250,000 per occurrence or a minimum combined single limit of
$1,000,000 per occurrence for bodily injury and damage to property, or comprehensive
automobile liability insurance plus additional excess umbrella liability insurance to meet these
limits. This insurance shall apply to any auto, whether owned or non-owned.
CP&L shall be added to the foregoing policies of insurance as additional insureds, The
Contractor shall cause its carrier or agent to certify that this requirement has been satisfied on all
insurance required by this Section.
VI. Effective and Termination Dates
This MOA shall become effective upon the latest of the dates of execution by the parties to the
Agreement. USFWS's and DEHNR's obligations under the section entitled Summary of Project
herein will terminate upon CP&L's confirmation by written notice that items (1) - (15) have been
satisfactorily completed. USFWS's and DEHNR's obligations under Sections III, and VI shall
terminate upon expiration of the statute of limitations period for any claim asserted related to the
project. USFWS's and DEHNR's representations in section IV (D) and (E) shall not terminate,
~~,olu

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VII. Contact Persons
For the duration of this MOA, the following persons will serve as contact persons for DEHNR,
USFWS and CP&L:
Contact person for USFWS is
Michael Wicker
United States Fish and Wildlife Service .
Phone: [phone], ext. 22
Contact person for DEHNR is:
Guy Stefanski, Program Coordinator
Division of Environmental Management.
Water Quality Section
Phone: [phone], ext 585
Contact person for CP&L is:
George J. Oliver, Manager
Environmental Services Section
Phone: [phone]
X. Notices
All notices or communications required or permitted under this Memorandum of Agreement
shall be deemed to have been given if in writing and placed in first-class mail postage prepaid, as
follows:
As to USFWS:
Michael Wicker
P.O. Box 33726
United States Fish and Wildlife Service
Raleigh, NC 27636-3726
Phone: [phone], ext. 22
As to DEI-INR:
Richard B. Whisnant, General Counsel
P.O. Box 27687
Raleigh, NC 27611-7687
rn I~ 1 1
As to CP&L: