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HomeMy WebLinkAbout20031110 Ver 3_401 Application_20091208 (2)I P Duke Energye Carolinas December 7, 2009 5ll 9MR D-L - a 2009 DENR - VVA i E+2 OUAUTY NETLANDS AND STORMWATER BRANCH Mr. John Dorney North Carolina Division of Water Quality (NCDWQ) 2321 Crabtree Boulevard Raleigh, NC 27604 HYDRO LICENSING AND LAKE SERVICES Duke Energy Carolinas, LLC 526 South Church St. Charlotte. NC 28202 Mailing Address: EC12K / P'0 Box 1006 Charlotte. NC 28201-1006 Re: Withdrawal and Re-submittal of Application for 401 Water Quality Certification Nantahala Hydroelectric Project, FERC No. 2692 DWQ # 2003-1110 V (p Dear Mr. Dorney: By a letter dated December 8, 2008, Duke Energy Carolinas, LLC ("Duke") filed a 401 Water Quality Certification (401 WQC) application with the NCDWQ for relicensing of the Nantahala Project. Since the one-year timeframe that FERC allows states to process 401 WQC applications expires on December 10, 2009 (i.e., one year following the date that Duke's WQC application was stamped accepted by NCDWQ) for the Nantahala Project, Duke hereby Withdraws the previous 401 WQC application that was stamped received by NCDWQ on December 10, 2008 and is simultaneously submitting a new 401 WQC application to NCDWQ for the Nantahala Project. Enclosed is the application fee of $570 for the Nantahala Project. At this time, Duke is also requesting that the NCDWQ place a hold on the processing of the Nantahala Project 401 WQC application. Duke is requesting this hold because final disposition of the Dillsboro Project is an important consideration in the Nantahala Cooperative Stakeholder Team Settlement Agreement (which also addresses the Nantahala Project) and regulatory approvals related to the Dillsboro Project are not fully resolved. We request that you provide public notice of this application within 20 days of the day of receipt. We will be glad to work with you to identify local newspapers as well as place and pay for the appropriate notices. The demolition and removal of the Dillsboro Dam and Powerhouse is anticipated to be completed by March, 2010, at which time Duke will request that NCDWQ begin processing the Nantahala 401 WQC application. If there are any questions, please call Steve Johnson at 704-382-4240 or Phil Fragapane at 704-382-4138. Sincerely, Steven D. Jester, Vice President Hydro Strategy, Licensing and Lake Services Duke Energy Carolinas, LLC SDJ/sj www. duke-energy. com c: Mr. Kevin Barnett, Asheville NCDWQ Regional Office Mr. Jim Mead, NC Division of Water Resources Secretary, FERC Jeff Lineberger, Duke Energy Carolinas, LLC Steve Johnson, Duke Energy Carolinas, LLC Phil Fragapane, Duke Energy Carolinas, LLC Garry Rice, Duke Energy 2 DWQ ID: 03-1110 FERC 401 WATER QUALITY CERTIFICATION APPLICATION For existing Federal Energy Regulatory Commission (FERC) Permits * SEND SEVEN (7) COPIES AND THE APPROPRIATE FEE (SEE ITEM # 16)* OF THIS APPLICATION TO: THE NC DIVISION OF WATER QUALITY ATTN: JOHN DORNEY 2321 CRABTREE BLVD., SUITE 250 RALEIGH, NC 27604 (PLEASE PRINT OR TYPE) 1. OWNER'S NAME: Duke Energy Carolinas, LLC ("Duke") Note: Duke is the both the applicant for the 401 Water Quality Certificate, and the Owner and Licensee of the West Fork Tuckasegee River Hydroelectric Proiect. 2. MAILING ADDRESS: 526 South Church Street CITY: Charlotte STATE: North Carolina ZIP CODE: 28202 PROJECT NAME: Nantahala Hydroelectric Proiect, FERC No. 2692 ("Proiect") PROJECT LOCATION ADDRESS (IF DIFFERENT FROM MAILING ADDRESS ABOVE): Nantahala Hydroelectric Plant 27656 Wayah Road Topton, NC 28781 3. TELEPHONE NUMBER: (WORK) 704 382-5942 4. IF APPLICABLE: AGENT'S NAME OR RESPONSIBLE CORPORATE OFFICIAL, ADDRESS, PHONE NUMBER: Version 1.0 January, 1999 Mr. Jeffrey G. Lineberger, Director, Hydro Licensing, Duke Energy Carolinas, LLC 526 South Church Street, Charlotte, NC 28202 5. LOCATION PROJECT (PROVIDE A MAP, INCLUDING A COPY OF USGS TOPOGRAPHIC MAP OR AERIAL PHOTOGRAPHY WITH SCALE): COUNTY: Macon and Clay NEAREST TOWN: A uone SPECIFIC LOCATION (INCLUDE ROAD NUMBERS, LANDMARKS, ECT.) See attached map 6. IMPACTED STREAM/RIVER: Nantahala River RIVER BASIN: Little Tennessee River Basin CURRENT DIVISION OF WATER QUALITY (DWQ) CLASSIFICATION: Nantahala River and all regulated tributaries: Class B, Class C, TR 7. (a) IS THE PROJECT LOCATED WITHIN A NORTH CAROLINA DIVISION OF COASTAL MANAGEMENT AREA OF ENVIRONMENTAL CONCERN (AEC)? YES 1 NO H (b) IF THE PROJECT IS LOCATED WITHIN A COASTAL COUNTY (SEE PAGE 7 FOR LIST OF COASTAL COUNTIES), WHAT IS THE LAND USE PLAN (LUP) DESIGNATION? 8. (a) ARE ADDITIONAL PERMIT REQUESTS EXPECTED FOR THIS PROPERTY IN THE FUTURE? YES ? NO © IF YES, DESCRIBE ANTICIPATED WORK: 9. (a) ESTIMATED TOTAL NUMBERS OF ACRES IN PROJECT: Nantahala Lake consists of 1,605 acres (surface area at full pond) and approximately 404 acres of land. The Nantahala Project also includes the Dicks Creek Pond (0.2 acre reservoir) and Whiteoak Creek Pond (1.1 acre reservoir). 10. PROVIDE AN APPROPRIATE ENVIRONMENTAL DOCUMENT. THE DOCUMENT SHOULD ADDRESS: (a) DATA SHOWING THAT A 7Q10 MINIMUM FLOW WILL BE PROVIDED Version 1.0 2 January, 1999 The Nantahala Project is operated as a peaking station under normal flow and water conditions. During periods of high stream flow and high reservoir elevation, the station is operated at maximum load, 24 hours a day, as needed, to minimize spilling. In accordance with the Nantahala Cooperative Stakeholder Team (NCST) Settlement Agreement, several flow-related Protection, Mitigation, and Enhancement Measures (PM&E) were agreed upon by twenty-one signatories including the NCDWQ (see the attached Settlement Agreement- Section 4.0 for details). These minimum flow related measures are as follows: Duke will provide the following minimum flows in bypassed reaches: (1) From the Whiteoak Creek Penstock: a total of 8 cfs into Dicks Creek from November 1 through May 31 and, after installation of the second valve, a total of 16 cfs into Dicks Creek from June 1 through October 31; and (2) From the Whiteoak Creek Diversion Dam after installation of the minimum flow device, 8 cfs or the inflow into Whiteoak Creek Pond, whichever is less, into Whiteoak Creek at the base of the dam from January 1 through December 31. Duke will continue to maintain Dicks Creek as free flowing with outflow from the base of Dicks Creek Pond Dam being equal to inflow into Dicks Creek Pond. Duke may temporarily vary from the minimum flows as identified above if required by conditions beyond its control or by operating emergencies or maintenance needs as defined in Attachments B and C of the attached Settlement Agreement. Such temporary variances shall be in accordance with the Low Inflow Protocol or the Hydro Project Maintenance & Emergency Protocol, incorporated as Attachments B and C, respectively to the attached Settlement Agreement. Duke will calibrate the meters used to monitor minimum flows within 60 days following installation of the additional minimum flow valve and device identified below and at least once every two years thereafter. Duke will within six months following its acceptance of the new license, consult with the NCWRC, NCDWR, NCDWQ, USFWS, and the USFS and file a plan ("Minimum Flow Plan") for FERC approval to modify project facilities to: (1) Maintain the existing minimum flow valve capable of releasing up to 8 cfs, as calibrated and metered at the valve, from Whiteoak Creek Penstock into Dicks Creek; (2) Install an additional minimum flow valve capable of releasing up to 8 cfs, as Version 1.0 January, 1999 calibrated and metered at the valve, from the Whiteoak Creek Penstock into Dicks Creek; and (3) Install a minimum flow device capable of releasing up to 8 cfs, as calibrated and metered at the device, from Whiteoak Creek Diversion Dam into Whiteoak Creek. By February 28, 2006 or within one year following FERC approval of the such plan, whichever comes later, the Licensee will complete the modifications of the proiect facilities identified in the plan and begin providing the minimum flows as specified above. (b) A COST BENEFIT ANALYSIS OF THE PROJECT SHOWING WHY THE PROJECT IS STILL NECESSARY Please see Exhibit H (Supplemental Information), Section H2.0 of the Nantahala Draft License Application for pertinent cost benefit information. A summary is as follows: The benefits of the Nantahala Hydroelectric Station as a resource for both capacity and energy can be expressed in terms of avoided costs. For the purposes of this evaluation, avoided costs are energy and capacity costs, which would be incurred by Duke if this particular hydro station were not available. These costs can be estimated to evaluate alternative resources, which have a similar impact on system energy and capacity costs. Duke can connect to the main Duke Energy system at the Tuckasegee Substation in Jackson County. Duke can also acquire additional power from the Tennessee Valley Authority (TVA) thru an interconnection at the Santeetlah Substation in Graham County. Under normal conditions either of these two suppliers is capable of providing the necessary replacement energy although at a higher system price. The average annual generation for the Nantahala Hydro Proiect for the period 1943-2002 was approximately 227,361 MWh. If the license were not granted, Duke would incur an additional expenditure. Using the average annual generation and the SCHEDULE PP-H (NC) 15-year fixed rates for a small hydro proiect with storage capability as the proxy alternative, the annual cost of replacement would be approximately $7,794,000. The Nantahala Hydroelectric Project and Duke's other hydro facilities produce the lowest cost energy available for Duke and its Nantahala Area customers. By keeping its costs low, Duke can in turn keep its electric rates low for its retail and wholesale customers. If the license were not ranted for the Nantahala Hydroelectric Project, Duke would incur an additional expenditure. The increase in energy costs to customers if a license is not granted is computed as the difference in the cost of replacement power and the cost of power produced by the Proiect. If the license is not granted the Version 1.0 January, 1999 subsequent increase in energy costs from purchased replacement power (estimated currently at $7,794,000 annually as described above) may result in higher electric rates for Duke's retail and wholesale customers. When water is available to run Duke's conventional hydro units in the Nantahala Area, this is the least cost option for Duke and its Nantahala area customers. However, Duke has a shortage of generation capacity relative to its current Nantahala Area demand during all times of the year. Because of this, Duke must acquire additional power from either the Tennessee Valley Authority (TVA) or the rest of Duke's system to satisfy the demand in the Nantahala Area. Loss of the Nantahala Hydroelectric Station would therefore increase the generation shortfall and increase dependence on external power supplies. (c) DESCRIPTION OF LENGTH OF BYPASS REACH (IF ANY) AND MEASURES TO PROVIDE FLOW TO THE REACH IN LOW FLOW CONDITIONS. The Nantahala River Bypassed Reach from the Nantahala Dam to the Nantahala Powerhouse is 9.3 miles in length. The Whiteoak Creek Bypassed Reach from Whiteoak Creek Diversion Dam to the confluence with Whiteoak Creek is 4 miles in length. Bypassed reaches, combined for the entire Proiect total 13.3 miles. The current license for the Nantahala Proiect has Protection, Mitigation, and Enhancement Measures (PM&E) in place to protect water quality within the Proiect including Dicks and Whiteoak Creeks and the Nantahala River. Duke agreed to the following PM&E measures on May 5, 1999 under the current FERC license: The 1999 Settlement Agreement provides for Duke to no longer divert flow from Dicks Creek. Duke will also release 8 cfs from the Whiteoak Creek Penstock into Dicks Creek from July 1 to November 15. No stream flow monitoring is required. The 2003 NCST Settlement Agreement provides for several minimum flow measures, as well as related PM&E measures, as described in 10(a) of this application and found in Section 4.0 of the Settlement Agreement. These flows are summarized as follows: Minimum Flows in Bypassed Stream Reaches - Assuming the new license for this Proiect will include the following requirements for minimum releases from hydro Proiect works into bypassed stream reaches to enhance water quality and/or aquatic species habitat (except during periods of low inflow covered by a low inflow protocol): Version 1.0 January, 1999 Duke will provide the following minimum flows in bypassed reaches: (1) From the Whiteoak Creek Penstock: a total of 8 cfs into Dicks Creek from November 1 through May 31 and, after installation of the second valve, a total of 16 cfs into Dicks Creek from June 1 through October 31; and (2) From the Whiteoak Creek Diversion Dam after installation of the minimum flow device, 8 cfs or the inflow into Whiteoak Creek Pond, whichever is less, into Whiteoak Creek at the base of the dam from January 1 through December 31. Duke will continue to maintain Dicks Creek as free flowing with outflow from the base of Dicks Creek Diversion Dam being equal to inflow into Dicks Creek Pond. Duke may temporarily vary from the minimum flows as identified above if required by conditions beyond its control or by operating emergencies or maintenance needs as defined in Attachments B and C of the attached Settlement Agreement. Such temporary variances shall be in accordance with the Low Inflow Protocol or the Hydro Proiect Maintenance & Emergency Protocol, incorporated as Attachments B and C, respectively to the attached Settlement Agreement. Duke will calibrate the meters used to monitor minimum flows within 60 days following installation of the additional minimum flow valve and device identified below and at least once every two years thereafter. Duke will within six months following its acceptance of the new license, consult with the NCWRC, NCDWR, NCDWQ, USFWS, and the USFS and file a plan ("Minimum Flow Plan") for FERC approval to modify proiect facilities to: (1) Maintain the existing minimum flow valve capable of releasing up to 8 cfs, as calibrated and metered at the valve, from Whiteoak Creek Penstock into Dicks Creek; (2) Install an additional minimum flow valve capable of releasing up to 8 cfs, as calibrated and metered at the valve, from the Whiteoak Creek Penstock into Dicks Creek; and (3) Install a minimum flow device capable of releasing up to 8 cfs, as calibrated and metered at the device, from Whiteoak Creek Diversion Dam into Whiteoak Creek. By February 28, 2006 or within one year following FERC approval of the such plan, whichever comes later, Duke will complete the modifications of the proiect facilities identified in the plan and begin providing the minimum flows as specified above. Version 1.0 January, 1999 Duke will continue providing each minimum flow for each release point as specified by the current license, even after expiration of the current license, until the new minimum flow, pursuant to the new license, for any specific release point is required to be implemented under the terms of the New License. ¦ The following NCST Settlement Agreement Protection, Mitigation and Enhancement measures also are associated with the relicensing of the Nantahala Proiect (see Section 6.0 of the NCST Settlement Agreement): 1. Duke will provide a one-time funding contribution, in-kind services or a combination of the two, at Duke's option, not to exceed a total cost of $40,000* to support a project by the USFWS, NCWRC and the USFS to restore the native strain of brook trout to a selected stream in the vicinity of the Tennessee Creek Hydro Station (East Fork Proiect- FERC Project No. 2698). 2. Within 1 to 15 years following its acceptance of the new licenses for the Duke Nantahala Hydro Projects, Duke will provide Cherokee, Clay, Jackson, Macon and Swain counties $40,000* each to implement the Duke-selected initiatives from a prioritized list identified by each county's Soil and Water Conservation District board as of July 1, 2005 that (1) make physical improvements that protect soil or water resources, (2) educate landowners or school children on proper soil or water conservation practices, and/or (3) improve soil or water conservation programs that affect lands that drain to anv of the DPNA Hydro Proiects or the river sections between the Duke Hydro Proiects and reservoirs belonging to the TVA. 3. Within 1 to 15 years following its acceptance of the new licenses for the Duke Hydro Proiects, Duke will provide a total of $200,000* for the purpose of supporting Duke-selected riparian habitat enhancement projects on lands that drain to any of the Duke Hydro Projects or the river sections between the Duke Hydro Projects and reservoirs belonging to the TVA)where such proiects (1) protect or enhance fish or wildlife habitat directly or (2) educate landowners or school children about the importance of healthy riparian areas for fish and wildlife habitat. (Attachment I to the NCST Settlement Agreement provides additional information). 4. By January 1, 2006 or within one vear following its acceptance of the new licenses for the East Fork Proiect, West Fork Project (FERC Project No. 2686) and the Nantahala Project, Duke will purchase and convey the approximately 150-ac tract of land identified in Attachment J of the NCST Settlement Agreement to the USFS 5. Duke worked with the USFWS, NCDWR, NCDWO, NCWRC, the North Carolina State Historic Preservation Officer (NCSHPO) and Version 1.0 January, 1999 the Eastern Band of Cherokee Indians (EBCI) and completed the necessary environmental, cultural resource, and engineering assessments regarding removal of Dillsboro Dam (FERC Proiect No. 2602) and potentially the Dillsboro Powerhouse (see Attachment F of the NCST Settlement Agreement for a summary). These assessments evaluated the potential effects of dam removal on aquatic species; determined the extent of any cultural resources impacts, and considered the options for removing the powerhouse (i.e. removal, closure, or leave as-is). (Note - the final assessment report will be included in the Dillsboro Proiect License Surrender Application that will be filed with the FERC by June 1, 2004 as noted below). The FERC issued a License Surrender Order for Dillsboro Dam on July 19, 2007. This Order required the Dillsboro Dam and Powerhouse to be removed by July 19, 2010. After the License Surrender Order was issued by the FERC, Duke received a 401 Water Quality Certification from NCDWO which requires the removal of 70,000 yd3 of sediment prior to the demolition and removal of the dam and powerhouse. Duke has also had many legal challenges associated with the Dillsboro Dam Removal. At the time of this annlication Duke has successfully removed 34,336 vd' of sediment and is planning to remove the remaining available sediment by December 31, 2009 with Dam Removal scheduled to begin on 1/4/2010, assuming all appropriate approvals have been received. * Amount increases annually subject to escalation clause in the Tuckasegee Cooperative Stakeholder Team Settlement Agreement. (d) MEASURES PLANNED OR TAKEN TO MAINTAIN DOWNSTREAM WATER QUALITY SUCH AS ADEQUATE DISSOLVED OXYGEN. The dissolved oxygen concentrations measured at 5-minute intervals in Dicks Creek and Whiteoak Creek were saturated with oxygen, the diel changes of oxygen were consistent with water in equilibrium with the atmosphere and responded to temperature changes. The dissolved oxygen concentrations in the Nantahala River Bypassed Reach downstream of the confluence with Dicks Creek were approximately 90% saturated with oxygen The variability of oxygen was less defined than DO in the tributaries Although temperature, flow, and resuspension probably contributed to the dissolved oxygen patterns, concentrations were consistently above 8 mg/1 The lower dissolved oxygen concentrations in the Nantahala River Bypassed Reach upstream of Dicks Creek were the result of inadequate instrument deployment. Dissolved oxygen concentrations were well within state water quality standards. Version 1.0 January, 1999 The sixteen years of monthly `grab' dissolved oxygen data collected by the NCDENR-DWO at the old USGS gage on the Nantahala River revealed dissolved oxygen concentrations that were consistently greater than the state water quality standard of 6 mg/1 for trout waters. Given the consistency of the dissolved oxygen concentrations in the source water (hypolimnions of Nantahala Lake), the monthly `grab' samples illustrated a remarkable similarity between the various years in the Nantahala River. The dissolved oxvaen concentrations were at or near saturation with the atmosphere throughout the seasons. Oxygen concentrations released from Nantahala Dam were similar to ambient concentrations in the Nantahala River. There will be no change in Proiect operations, thus no change in the DO levels. For a full data set and discussion, please refer to Exhibit E, Section E2.0 of the Nantahala Proiect License Application. 11. WHAT IS THE SIZE OF THE WATERSHED 108.3 square mile drainage area WHAT IS THE FULL-POND SURFACE AREA? 1,605 acres at elevation 3,012 ft. msl. 12. YOU ARE REQUIRED TO CONTACT THE US FISH AND WILDLIFE SERVICE AND/OR NATIONAL MARINE FISHERIES SERVICE REGARDING THE PRESENCE OF ANY FEDERALLY LISTED OR PROPOSED FOR LISTING ENDANGERED OR THREATENED SPECIES OR CRITICAL HABITAT IN THE PERMIT AREA THAT MAY BE AFFECTED BY THE PROPOSED PROJECT. DATE CONTACTED: Letter from Brian Cole (USFWS-Asheville) on March 8, 2000 in association with Proiect Section 7 consultation and subsequent letters/discussions with the USFWS during the relicensing process. 13. YOU ARE REQUIRED TO CONTACT THE STATE HISTORIC PRESERVATION OFFICER (SHPO) REGARDING THE PRESENCE OF HISTORIC PROPERTIES IN THE PERMIT AREA WHICH MAY BE AFFECTED BY THE PROPOSED PROJECT. DATE CONTACTED: Letter from Renee Gledhill-Earley (NC Dept. of Cultural Resources) on December 16, 1999 in association with cultural resource consultation and subsequent letters/discussions with the NCDCR during the relicensing process. Version 1.0 9 January, 1999 14. DOES THE PROJECT INVOLVE AN EXPENDITURE OF PUBLIC FUNDS OR THE USE OF PUBLIC (STATE) LAND? YES ? NO ? (IF NO, GO TO 15) (a) IF YES, DOES THE PROJECT REQUIRE PREPARATION OF AN ENVIRONMENTAL DOCUMENT PURSUANT TO THE REQUIREMENTS OF THE NORTH CAROLINA ENVIRONMENTAL POLICY ACT? YES NO (b) IF YES, HAS THE DOCUMENT BEEN REVIEWED THROUGH THE NORTH CAROLINA DEPARTMENT OF ADMINISTRATION STATE CLEARINGHOUSE YES NO IF ANSWER 17b IS YES, THEN SUBMIT APPROPRIATE DOCUMENTATION FROM THE STATE CLEARINGHOUSE WITH THE NORTH CAROLINA ENVIRONMENTAL POLICY ACT. QUESTIONS REGARDING THE STATE CLEARINGHOUSE REVIEW PROCESS SHOULD BE DIRECTED TO MS. CHRYS BAGGETT, DIRECTOR STATE CLEARINGHOUSE, NORTH CAROLINA DEPARTMENT OF ADMINISTRATION, 116 WEST JONES STREET, RALEIGH, NORTH CAROLINA 27603-8003, TELEPHONE (919) 733-6369. 15. THE FOLLOWING ITEMS SHOULD BE INCLUDED WITH THIS APPLICATION IF PROPOSED ACTIVITY INVOLVES THE DISCHARGE OF EXCAVATED OF FILL MATERIAL INTO WETLANDS: N/A (a) WETLAND DELINEATION MAP SHOWING ALL WETLANDS, STREAMS, LAKES, AND PONDS ON THE PROPERTY (FOR NATIONWIDE PERMIT NUMBERS 14, 18, 21,26, 29, AND 38). ALL STREAM (INTERMITTENT AND PERMANENT) ON THE PROPERTY MUST BE SHOWN ON THE MAP. MAP SCALES SHOULD BE 1 INCH EQUALS 50 FEET OF 1 INCH EQUALS 100 FEET OF THEIR EQUIVALENT. (b) IF AVAILABLE, REPRESENTATIVE PHOTOGRAPH OF WETLANDS TO BE IMPACTED BY PROJECT. (c) IF DELINEATION WAS PERFORMED BY A CONSULTANT, INCLUDE ALL DATA SHEETS RELEVANT TO THE PLACEMENT OF THE DELINEATION LINE. Version 1.0 10 January, 1999 (d) ATTACH A COPY OF THE STORMWATER MANAGEMENT PLAN IF REQUIRED. (e) WHAT IS LAND USE OF SURROUNDING PROPERTY? (f) IF APPLICABLE, WHAT IS PROPOSED METHOD OF SEWAGE DISPOSAL? 16. CERTIFICATION FEE (a) IF THE IMPACT IS LESS THAN 1 ACRE OF WETLAND OR WATER AND LESS THAN 150 FEET OF STREAM, PLEASE ENCLOSE A CHECK FOR $240.00 MADE OUT TO THE NORTH CAROLINA DIVISION OF WATER QUALITY. (b) IF THE IMPACT EXCEEDS EITHER OR BOTH OF THE LEVELS IN (a), PLEASE ENCLOSE A CHECK FOR $570.00 MADE OUT TO THE NORTH CAROLINA DIVISION OF WATER QUALITY. 17. PUBLIC NOTICE IS REQUIRED FOR ALL FERC PROJECTS. PLEASE NOTE THAT THE APPLICANT IS REQUIRED TO REIMBURSE THE DIVISION OF WATER QUALITY FOR THE COSTS ASSOCIATED WITH THE PLACEMENT OF THE PUBLIC NOTICE. REFERENCE 15A NCAC 2H .0503 (f). SIGNED AND DATED AGENT AUTHORIZATION LETTER, IF APPLICABLE. NOTE: WETLANDS OR WATERS OF THE US MAY NOT BE IMPACTED PRIOR TO: 1. ISSUANCE OF A SECTION 404 CORPS OF ENGINEERS PERMIT, 2. EITHER THE ISSUANCE OR WAIVER OF A 401 DIVISION OF WATER QUALITY CERTIFICATION, AND 3. (IN THE TWENTY COASTAL COUNTIES ONLY), A LETTER FROM THE NORTH CAROLINA DIVISION OF COASTAL MANAGEMENT STATING THE PROPOSED ACTIVITY IS CONSISTENT WITH THE NORTH CAROLINA COASTAL MANAGEMENT PROGRAM, Version 1.0 11 January, 1999 OWNER'S/AGENT'S SIGNATURE Steven D. Jester, Vice President Hydro Strategy, Licensing and Lake Services Duke Energy Carolinas, LLC DATE (AGENT'S SIGNATURE VALID ONLY IF AUTHORIZATION LETTER FROM THE OWNER IS PROVIDED). Version 1.0 12 January, 1999 NANTAHALA HYDROELECTRIC PROJECT FERC No. 2692 SECTION 401 WATER QUALITY CERTIFICATION APPLICATION TO THE NORTH CAROLINA DIVISION OF WATER QUALITY • P swmca CLAY CO. NORTH CAROLINA GEORGIA Prepared by: DUKE ENERGY CAROLINAS, LLC Charlotte, North Carolina DECEMBER 2009 I Duke r r? 4 4 fir- \i Po?A _ L i /r q c ° 2 9 z' W 0 \ _, J ? q O C D . S_? Y Q? Z N g'Eo To 00 10 a o, N o C O r Z .. U O m W CO c e0 U. d ZU „ ; . 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