20041101 Ver 6_NOV-2021-SS-0018_20211008

DocuSign Envelope ID: 79246EE4-221 5-427D-AEBF-17B06471 F258
ROY COOPER
Governor
ELIZABETH S. BISER
Secretary
S. DANIEL SMITH
Director
October 8, 2021
CERTIFIED MAIL
RETURN RECEIPT REQUESTED
Northbrook Carolina Hydro II, LLC
Attn: Chuck Ahlrichs
14550 N F Lloyd Wright, Suite 210
Scottsdale, AZ 85260
7020 1290 0001 1766 9757
NORTH CAROLINA
Environmental Quality
Northbrook Carolina Hydro II, LLC
Corporation Service Company
2626 Glenwood Avenue, Suite 550
Raleigh, NC 27608
7020 1290 0001 1766 9795
Subject: NOTICE OF VIOLATION
and RECOMMENDATION FOR ENFORCEMENT
NOV-2021-SS-0018
Bryson Hydroelectric Project, FERC No. 2601
DWR Project No. 20041101 V6
Stream Standard Violation — Other Waste (In -Stream Sediment)
Stream Standard Violation — Removal of Best Usage
Swain County
Dear Mr. Ahlrichs:
On October 4, 2021, the Asheville Regional Office (ARO) of the Division of Water Resources
(DWR) received a complaint regarding a sediment release from the Bryson Dam to the
Oconaluftee River (Classified C; Trout; High Quality Waters) in Ela, Swain County, North
Carolina. Andrew Moore from the ARO discussed this notification with you the afternoon of
October 4, 2021, at which time you indicated the Bryson reservoir had been lowered to allow for
the assessment of an apparent failure of the stoplogs. DWR is aware that you provided email
notification of the drawdown after we spoke on the afternoon of October 4, 2021, to the North
Carolina Wildlife Resources Commission, the US Fish and Wildlife Service, and the DWR
Central Office staff.
On October 5, 2021, Andrew Moore and Kevin Mitchell from the ARO conducted a site
inspection of the Oconaluftee River below the Bryson Dam. No one was present at the facility at
the time of the site inspection. During the site inspection, a reach of approximately 700 feet of
the Oconaluftee River was observed to have been impacted by sediment deposition measured
between 18 and 24 inches across the entire width of the river. Sediment was observed in the
thalweg and isolated pockets of the Oconaluftee River from the Highway 19A bridge,
approximately 0.3 miles below the Bryson Dam, and extending downstream toward the
Tuckasegee River. Additional observations from the US Fish and Wildlife Service indicate
NO
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North Carolina Department of Environmental Quality I Division of Water Resources
Asheville Regional Office 12090 U.S. Highway 70 I Swannanoa, North Carolina 28778
828.296.4500

DocuSign Envelope ID: 79246EE4-2215-427D-AEBF-17B06471 F258
Northbrook Carolina Hydro II, LLC
October 8, 2021
Page 2 of 4
visible sediment deposition within the Oconaluftee River to its confluence with the Tuckasegee
River. DWR noted that the reservoir appeared to be at, or near, full pool level the morning of
October 5, 2021.
The Oconaluftee River below the Bryson Dam supports a number of state and federally -listed
species including the Eastern Hellbender (NC Special Concern), Smoky Dace (NC Special
Concern), Sicklefin Redhorse (NC Threatened), Olive Darter (NC Special Concern), Wounded
Darter (NC Special Concern), Little Tennessee Crayfish (NC Special Concern), Highlander
Shiner (NC Significantly Rare), Smallmouth Redhorse (NC Significantly Rare), and the
Tuckasegee Stream Crayfish (Significantly Rare). The Tuckasegee River, located approximately
one-half mile below the Bryson Dam, is critical habitat for the Appalachian Elktoe mussel (US
Endangered, NC Endangered).
As a result of the site inspection, the following violations were identified:
VIOLATIONS
I. Other Water (In -Stream Sediment) — 15A NCAC 02B .0211 (12) — Title 15A NCAC 02B
.0211 (12) requires that "Oils, deleterious substances, colored, or other wastes: only such
amounts as shall not render the waters injurious to public health, secondary recreation, or
to aquatic life and wildlife: or adversely affect the palatability of fish, aesthetic quality, or
impair the waters for any designated uses." More than 2,000 feet of the Oconaluftee
River was impacted by sediment deposition.
II. Removal of Best Usage — 15A NCAC 02B .0211 (2) — Title 15A NCAC 02B .0211 (2)
requires that the waters shall be suitable for aquatic propagation and maintenance of
biological integrity, wildlife, secondary recreation, and agriculture. The sediment
deposition within the Oconaluftee River represents a removal of best usage.
REQUIRED RESPONSE
Accordingly, you are directed to provide an initial response to this letter within ten (10) days of
receipt. Your response should be sent to the attention of Andrew Moore at the footer address or
[e-mail] and should address the following:
1. Provide a detailed accounting and chronology of the events leading up to, and following,
the Bryson reservoir drawdown and reservoir refill. The accounting should include, but
not be limited to, reservoir level data; precipitation data; whether the units were operating
at the time of the drawdown, and if so, at what capacity; how the reservoir was drawn
down; conditions observed or indicators that supported the need for the evaluation; and
the results of the evaluation of the Bay 3 conduit stoplogs, including pictures and other
documentation of the evaluation. Please describe any evaluation of sediment conditions
prior to the release referencing any procedures or processes that include sediment
management and evaluation.

DocuSign Envelope ID: 79246EE4-2215-427D-AEBF-17B06471 F258
Northbrook Carolina Hydro II, LLC
October 8, 2021
Page 3 of 4
2. The DWR is in receipt of the October 5, 2021 Drawdown for Evaluation of Conduit
Stoplog Failure letter from Northbrook Power Management to the Federal Energy
Regulatory Commission. Provide a detailed description of why the drawdown and
evaluation was an emergency situation, describe the decision -making process referencing
any existing procedures if they exist, and why consultation could not be initiated prior to
drawdown. Please provide a description of potential outcomes had the drawdown been
delayed.
Within thirty (30) days of receipt of this Notice, provide a Sediment Removal Plan. Sediment
impacts to the river must be removed and aquatic habitat restored. As part of this plan, you
should provide an evaluation of the amount of material that has been deposited in the river. The
sediment should be removed from the river, taken to high ground away from the river and
stabilized. The plan shall describe the means and methods of sediment removal as well as the
disposal location and any measures necessary for protecting downstream areas during removal.
The plan shall be approved by DWR and resource agencies before being implemented.
Thank you for your attention to this matter. This office requires that the violations, as detailed
above, be abated immediately and properly resolved. Environmental damage and/or failure to
secure proper authorizations have been documented on the subject tract as stated above. Your
efforts to undertake actions to bring the subject site back into compliance is not an admission,
rather it is an action that must be taken in order to begin to resolve ongoing environmental issues.
Pursuant to G.S. 143-215.6A, these violations and any future violations are subject to a civil
penalty assessment of up to a maximum $25,000.00 per day for each violation. Your above -
mentioned response to this correspondence, the degree and extent of harm to the environment,
and the duration and gravity of the violation(s) will be considered in any civil penalty assessment
process that may occur.
Should you have any questions regarding these matters, please contact Andrew Moore at (828)
296-4684 or [e-mail].
Sincerely,
DocuSigned by:
LLM(
7E617A38285848C...
G. Landon Davidson, P.G, Regional Supervisor
Water Quality Regional Operations
Asheville Regional Office
ec: CarLisa Linton -Peters — Federal Energy Regulatory Commission
David Capka — Federal Energy Regulatory Commission
David Brown — US Army Corps of Engineers
Bryan Tompkins — US Fish and Wildlife Service
Chris Goodreau — North Carolina Wildlife Resources Commission

DocuSign Envelope ID: 79246EE4-2215-427D-AEBF-17B06471 F258
Northbrook Carolina Hydro II, LLC
October 8, 2021
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Fred Tarver — Division of Water Resources
Stan Aiken — Division of Energy, Mineral and Land Resources
Cory Lagerstrom — HydroLand Carolinas I, LLC
DWR 401 & Buffer Permitting Unit file