20070812 Ver 1_More Info Letter_20070808

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August 8, 2007
Certified Mail -Return Receipt Requested
William Bunker, V.P. APGI Hydro Operations
Alcoa Power Generating, Inc.
300 North Hall Rd (MS-T1521)
Alcoa, Tennessee 37701-2516
Dear Mr. Bunker:
Michael F. Easley, Governor
William G. Ross Jr., Secretary
North Carolina Department of Environment and Natural Resources
Coleen H. Sullins, Director
Division of Water Quality
RE: Proposed condition in 401 Water Quality Certification for FERC Project No. 2197
Yadkin Hydroelectric Project No. 2197
Stanly County
DWQ # 2007-0812
As you know, the Division of Water Quality has been reviewing your recent application dated May 10,
2007 (received May 10, 2007) fior a 401 Water Quality Certification for the High Rock, Tuckertown, Narrows
and Falls Reservoirs. A Public Notice was done on June 12 in the Stanly News and Press for this project. In
addition, DWQ staff mailed copies of the public notice to all known interested parties including AIPGI and the
City of Salisbury, NC. The public comment period ended July 18, 2007 and we received comments from the
City of Salisbury, and the NC Division of Water Resources. We also received a draft report from the US
Geological Survey who was hired by the Department of Environment and Natural Resources to provide
scientific assistance in reviewing the flooding and sedimentation issues that the City of Salisbury alleges are
caused by the operation of High Rock Lake dam.
Comments from the City of Salisbury are attached. The City asks the Division to include as provisions
of the 401 Water Quality Certification two conditions related to amelioration of the flooding damage to the water
supply pump station and Grants Creek WWTP and sedimentation effects on the water intake for the City. The
Division of Water Resources provided comments related to provisions in the Settlement Agreement that can be
readily incorporated into the Certification.
As you know and as stated above, the Department hired Dr. Jerad Bales from the US Geological
Survey to examine various documents provided by APGI and the City of Salisbury to address the flooding and
sediment issues. DWQ does not yet have a final report from the USGS but we do have a report dated June
24, 2007 and marked as Draft. Until we receive a final report from USGS, the application will remain
incomplete since this information necessary to the Director's decision is unavailable (15A NCAC 2H
.0507(a)(5)). However since we are uncertain as to when the final report will be available from USGS, we
believe that it is most efficient to inform APGI and the City of Salisbury as to the general conclusions from the
report as well as DWQ's conclusions as to the relevancy of those conclusions to the 401 Certification Program
and provide a short amount of time for APGI or Salisbury to respond to that (still draft) report before we
prepare the 401 Water Quality Certification for this project.
None Carolina
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Wetlands and Stormwater Branch 1617 Mail Service Center Raleigh, NC 27699-1617 Phone [phone]
Internet: h2o.enr.state.nc.us 512 N. Salisbury St. Raleigh, NC 27604 FAX [phone]
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Although there are uncertainties in the models used and analysis thereof, the USGS report concludes
• that 1) the presence of the dam has likely contributed to increased water levels at the Salisbury intake but the
increase cannot be accurately quantified, and 2) sedimentation in the upper end of High Rock Lake has likely
increased as a result of High Rock dam. DWQ's 401 Certification rules (15A NCAC 2H .0500) are predicated in
part on the need to protect the existing use of the water - in this case, the water supply use by the City of
Salisbury. With respect to flooding, the data provide an insufficient basis for a certification condition.
Moreover, historical records do not indicate that flooding has ever interrupted water supply use, and the effects
of flooding in this case appear to be more in the nature of a property damage issue rather than a water quality
or supply issue. Therefore, DWQ staff have tentatively concluded that flooding is not an issue to address in
the 401 Certification for this project. With respect to sedimentation, it is clear that sediment deposition
resulting, at least in part, from the presence of the High Rock dam can remove the use of the water for water
supply since the sediment could make the intake inoperable and dredging has been necessary in the past to
maintain the operability of the intake. Therefore, DWQ has tentatively concluded that APGI must take steps to
protect this existing use from sediment deposition resulting from High Rock dam. The continuation of dredging
by APGI is one acceptable method that has proven successful in the past. DWQ welcomes thoughts from both
APGI and the City of Salisbury regarding removal of sedimentation in the area of the intake, including as to the
proper wording for a potential Certification condition.
As stated above, we believe that although the final USGS report is not available, it is good public policy
to inform both APGI and the City of Salisbury of DWQ's tentative conclusions regarding these issues in order
to provide both parties an opportunity to comment on these conclusions before we prepare the final 401
Certification for the project. As stated earlier, once we receive the final version of the USGS report, then the
Director will have all information needed for her decision. Finally, the 401 Certification rules state that the
applicant must pay the Department the cost of publishing the public notice (15A NCAC 2H .0503f)). To date,
we have not yet received the bill for the public notice. Once I receive that bill, I will forward it on to you for
payment. Therefore, until we receive payment for the public notice bill and the final report from USGS, the
application is incomplete. However, as you are aware, we are actively working to complete action on this
Certification. In order to make a timely decision once that report is final, please send any comments on the
Division's conclusions to me by August 24, 2007 so we can consider these comments in our 401 Certification.
I can be reached at 919-733-9646 if you have any questions.
Cc: Jim Mead, Division of Water Resources
Matt Bernhardt, Assistant City Manager for Utilities, Salisbury-Rowan Utilities Department,
Administrative Division, City of Salisbury, 1 Water Street, Salisbury, NC 28144
Randall Benn, LeBoeuf, Lamb, Green and MacRae, LLP, 1875 Connecticut Ave., NW, Suite
1200, Washington, DC 20009-5728,
Gene Ellis, APGI, Yadkin Division, P.O. Box 576, Badin, NC 28009
Randall Tinsley, Brooks, Pierce, McLendon, Humphrey and Leonard, P.O. Box 26000,
Greensboro, NC 27420
Marc Bernstein, NC Attorney General's Office
Darlene Kucken, DWQ
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