20030179 Ver 6_More Info Received_20070628

Duke
Energy®
Carolinas
June 27, 2007
VIA OVERNIGHT MAIL
O 3- o ~ '- q Y (~
Mr. John Dorney
401 Oversight/Express Permitting Unit
DENR/Division of Water Quality
2321 Crabtree Blvd, Suite 250
Raleigh, NC 27604
HYDRO LICENSING
Duke Energy Carolinas, LLC
EC12Yl 526 South Church Street
Charlotte, NC 28202-1802
Mailing Address:
~~~~ ~ YIP.O.Box1006
D t ~, ~ ~ ~ ~,h tte, NC 28201-1006
JUN 2 ~ 2007
DEi~R - ~tiA7ER QUF;UTY
W~I~'OS A~~Q ST~fi~AT~R BRAieCH
Subject: Dillsboro Dam Removal and Sand Mining
401 Water Quality Certification Application, Additional Information Request
(DWQ Project # 2003-0179, Ver. 6)
Dear Mr. Dorney:
The following letter is in response to your additional information request letter received May 24,
2007 regarding the joint 404/401 application for activities associated with the removal of the
Dillsboro Dam (DWQ Project # 2003-0179, Ver. 6).
Duke Energy Carolinas, LLC (Duke) has proposed removal of the Dillsboro Dam and
Powerhouse to the Federal Energy Regulatory Commission (FERC) in accordance with both the
Nantahala and Tuckasegee Settlement Agreements that the North Carolina Department of
Environment and Natural Resources (NCDENR) is a Party to. Duke appreciates the Division of
Water Quality's (DWQ) issuance on May 15, 2005, of a 401 water quality certification for the
surrender of the Dillsboro License and removal of the powerhouse and dam. As was
contemplated in the 401 issued by DWQ, the removal of the Dillsboro Dam and Powerhouse is a
complex effort requiring many local, state, and federal authorizations for associated activities.
Duke understands that it must submit a detailed dam removal and monitoring plan for DWQ
approval as stipulated in Condition 6 of the 401 for dam removal. However, Duke would like to
clarify that the inclusion of a summary of the proposed dam removal and monitoring plan in the
404/401 and sand mining permit applications was not a request for approval of said dam removal
and monitoring plan. Rather, Duke's intentions were and are to proceed with acquiring the
necessary associated approvals for activities associated with and supportive of the dam removal
effort. The proposed dam removal and monitoring plan summarized in the 404/401 and sand
mining permit applications was developed in consultation with the NCDENR, North Carolina
Wildlife Resources Commission (NCWRC), and United States Fish and Wildlife Service
(USFWS) and represents Duke's plans at this time. However, as Duke has discussed with
NCDENR, NCWRC, and the USFWS, Duke intends to revise the plan when the sand mining
operation is permitted and begins removing the accumulated sand deposits in the reservoir. This
revised dam removal and monitoring plan will also incorporate any applicable requirements of
the 404/401 s and sand mining permit. Upon revision, Duke will then submit the complete dam
removal and monitoring plan to DWQ for approval.

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June 27, 2007
Each comment/information request made by the DWQ is reprinted for clarity followed by
Duke's response.
Comment: Water Quality Certification
You have proposed impacts to streams and have stated that the use of Nationwide Permits 33 and
39 has been "verified." In order for us to properly process this application, please advise who in
the Corps of Engineers (presumably) agreed that these Nationwide Permits were appropriate for
this project. If your consultants have not done so, they should contact the U.S. Army Corps of
Engineers (USAGE) to determine which permit they will allow you to use.
Response: A site visit to the Dillsboro Reservoir and Dam was made on January 25, 2007.
The purpose of the site visit was to obtain agency guidance for the sections 404/401 permits
and certifications necessary to conduct work within jurisdictional waters of the U.S. and
North Carolina, including dam removal, temporary work pad construction and sand mining.
Attending the site visit were Ms. Loretta Beckwith and Mr. Tom Walker of the United States
Army Corps of Engineers (USAGE), Asheville Regional Office, Mr. Kevin Barnett of the
North Carolina Division of Water Quality (DWQ), Asheville Regional Office, and Mr. David
McHenry of the NCWRC, as well as representatives from Duke and Devine Tarbell &
Associates, Inc. (DTA).
After consultation, both Ms. Beckwith and Mr. Walker agreed. that Nationwide Permits.
(NWP) 33 (GC 3634) and 39 (GC 3631) were the appropriate NWPs to use in this instance.
Upon further review of the application package, they have also identified NWP 16 (GC
3629) as applicable; Ms. Beckwith has stated that the USAGE will not require a resubmittal
of the permit application to include this additional NWP.
• NWP 33 covers temporary construction, access, and dewatering within jurisdictional
waters. In this case NWP 33 covers the construction of the temporary dam access
roads and work pads.
• NWP 39 covers commercial and institutional developments. This permit is used
because the USAGE views the hydroelectric dam as an institution. The
recommendation to use this permit was verified through repeated consultation with
Ms. Beckwith.
NWP 16 covers return water from upland contained disposal areas. The return water
from a contained disposal area is administratively defined as a discharge of dredged
material by 33 CFR 323.2(d), even though the disposal itself occurs on the upland and
does not require a section 404 permit. This NWP satisfies the technical requirement
for a section 404 permit for the return water where the quality of the return water is
controlled by the state through the section 401 certification procedures.
The USAGE does not require a permit for removal of the dam itself.
Copies of the joint 404/401 application for the Dillsboro Dam and Reservoir Project were
sent to the USAGE on the same date as the submittal to the DWQ.

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June 27, 2007
Comment:
The proposed water chemistry monitoring will have to be done by a laboratory certified by DWQ
for this purpose. Please provide written assurance that this requirement will be met.
Response: Duke will utilize a laboratory certified by DWQ for water chemistry monitoring
required by DWQ.
Comment: Water Quality Monitoring
The proposed post removal aquatic resource monitoring (page 50 in the application) is not clear.
Please address what methods will be used for this monitoring as well as the approximate
monitoring schedule.
The proposed aquatic monitoring apparently does not include monitoring of aquatic
macrobenthos. This monitoring will be required pre and post dam removal in order to
demonstrate the restoration of a typical biological community for a river in order to obtain the
planned stream mitigation credit for this project. Please provide a proposed macrobenthos
monitoring plan to supplement the proposed fish monitoring plan.
It is not clear when the TSS and turbidity monitoring will occur during the dredging and dam
removal process. Regular monitoring probably at least on a weekly basis will be required during
the dredging and dam removal process to ensure protection of water quality standards. We
suggest that upstream and downstream monitoring be proposed in order to assure compliance
with these standards. Please provide more details on this monitoring in your response.
Response: As described above, the Project Narrative included in the 404/401 package
includes a summary of Duke's proposed schedule and associated monitoring methods for
monitoring during dam and powerhouse removal. This proposed plan was developed in
consultation with representatives from NCDENR, the NCWRC, and the USFWS. Duke
understands that DWQ will need to approve the final dam removal and monitoring plan.
Duke intends to modify its dam removal and monitoring plan, in consultation with the
NCDENR, NCWRC, and USFWS, to reflect the effects of the sand mining operation after
the sand mining operation has been appropriately pemitted and is underway. Please note that
the plan and schedule may also be revised according to any requirements of the FERC.
Regardless, the state and federal agencies, including NCDENR, will be invited to review and
comment on the dam removal and monitoring plan prior to its submittal to both DWQ and
the FERC for approval.
The current proposed dam removal and monitoring plan includes monitoring for both
macrobenthic invertebrates (specifically EPT taxa) and fish. Duke will provide additional
details about its proposed monitoring methodology and schedule for these aquatic resources
when it submits its dam removal and monitoring plan to DWQ for approval.
Please refer to table 8.3-1 (page 48 of the 404/401 application project narrative) for the water
quality sampling schedule that is to be followed during the dam removal. The TSS, turbidity,
and sediment deposition sampling will take place daily during dam removal at the 14 noted
locations (RM 14-32.7 [Tl-T14]). Likewise, TSS and turbidity monitoring will take place

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June 27, 2007
weekly during the mining process. It is our understanding that the specifics of the
monitoring will be included in the terms and conditions of the 401 Water Quality
Certification. In the Nantahala and Tuckasegee Settlement Agreements, Duke agreed to
complete any Duke portion of the post-removal remediation and monitoring within 2 years
following completion of dam removal.
Comment: Sand Mining Staging Area Revegetation
Please provide a plan to replant the entire dredging staging area (or at least that portion presently
in woody vegetation). It is not clear whether the proposed replanting will address this entire
area.
Response: Please see page 14 of Appendix G of the 404/401 application for the sand mining
staging area reclamation plan (entire disturbed terrestrial/riparian area). This plan includes
the use of year-round plantings, the use of cover crops, and planting of herbaceous and
woody native species.
Comment: Streambank Stability
Please provide a plan to visually monitor the exposed streambanks during dam removal to ensure
that any eroding streambanks are promptly planted with temporary vegetative cover.
Response: Reservoir banks exposed during the dam removal and subsequent reservoir
drawdown will be monitored on a daily basis during the removal. Both banks along the
length of the reservoir will be visually inspected and any erosion will be documented
photographically. Any eroding areas will be promptly seeded to secure them against further
erosion. The seed mix to be used is described in the reclamation plan of the mining permit
application (see page 14) and represents a mix of native species commercially used in stream
restoration projects.
Comment: Public Notice
Since the US Army Corps of Engineers is apparently not going to do a Public Notice for this
project, DWQ will need to do so for the Individual Certification for the FERC permit.
According to our rules (15A NCAC 2H .0503), the notice can be made only after receipt of a
complete application and must be published one time in a local paper as well as sent to our 401
Certification mailing list. Once the above issues are addressed, DWQ will prepare the Public
Notice for this project. You should be aware (as discussed earlier) that given the high level of
past public interest in this project, that the Director of DWQ may decide to hold a public hearing
for this project after the public comment period. If that decision is made, we will coordinate that
effort with you and your consultants.
Response: Duke is aware of the necessity for a Public Notice. If DWQ elects to hold a
public hearing for the issuance of the 401 s associated with the USACE 404 permits or the
sand mining, Duke encourages DWQ to clearly define the scope of the issues to be discussed.
Given the depth of Duke's evaluation and the number of public meetings regarding removal
of the Dillsboro Dam and Powerhouse during the FERC process, Duke doubts that there are
any significant additional issues that could be raised during such a hearing for the removal of
the Dillsboro Dam and Powerhouse.

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June 27, 2007
We appreciate your involvement in this effort and are eager to move ahead to continue
implementing the activities set forth in the Nantahala and Tuckasegee Settlement Agreements.
Sincerely:
Jeffrey G. Lineberger, PE
Manager, Hydro Licensing
cc: Steve Reed, NCDENR
Chris Goudreau, NCWRC
Mark Cantrell, USFWS
Loretta Beckwith, USACE
Scott Fletcher, DTA
John Wishon