20150759 Ver 2_Approval Letter_20160908

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Water Resources
ENVIRONMENTAL. QUALITY
Mr. Ray F. Ward
443 Old Watauga River Road
Sugar Grove, NC 28679
PAT MCCRORY
Governor
Secrerary
S. JAY ZIMMERMAN
•
Director
Subject: Approval of Individual 401 Water Quality Certification with Additional Conditions
Ward Mill HydroelectricProject — P-9842-006
Dear Mr. Ward:
Attached hereto is a copy of Certification No. 4067 issued to Mr. Ray F. Ward, dated September
8, 2016. Please note that you should get any other federal, state or local permits before
proceeding with the subject project, including those required by (but not limited to) Sediment
and Erosion Control, Non -Discharge, and Water Supply Watershed regulations.
This approval and its conditions are final and binding unless contested. This Certification can be
contested as provided in Articles 3 and 4 of General Statute 1508 by filing a written petition for
an administrative hearing to the Office of Administrative Hearings (hereby known as OAH) within
sixty (60) calendar days.
A petition form may be obtained from the OAH at http://www.ncoah.com/ or by calling the OAH
Clerk's Office at [phone] for information. A petition is considered filed when the original
and one (1) copy along with any applicable OAH filing fee is received in the OAH during normal
office hours (Monday through Friday between 8:00am and 5:00pm, excluding official state
holidays).
The petition may be faxed to the OAH at [phone], provided the original and one copy of
the petition along with any applicable OAH filing fee is received by the OAH within five (5)
business days following the faxed transmission.
State of North Carolina I Environmental Quality j Water Resources
1617 Mail Service Center I Raleigh, North Carolina 27699-1617
919 8076100

Mailing address for the OAH:
If sending via US Postal Service:
Office of Administrative Hearings
6714 Mail Service Center
Raleigh, NC 27699-6714
Mr. Ray F. Ward
DWR# 15-0759 v2
Individual Certification #4067
Page 2 of 6
If sending via delivery service (UPS, FedEx, etc):
Office of Administrative Hearings
1711 New Hope Church Road
Raleigh, NC 27609-6285
One (1) copy of the petition must also be served to Department of Environmental Quality:
Sam M. Hayes, General Counsel
Department of Environmental Quality
1601 Mail Service Center
Raleigh, NC 27699-1601
Unless such a petition is filed, this Certification shall be final and binding.
This certification completes the review of the Division of Water Resources under section 401 of
the Clean Water Act and 15A NCAC 02H .0500. Please contact me at 919-807-6360 or
[e-mail] or Jennifer Burdette at 919-807-6364 or
[e-mail] if you have any questions or concerns.
Sincerely,
Karen Higgins, Supervisor
401 & Buffer Permitting Branch
cc: Andrew C. Givens, Cardinal Energy Services, Inc., 620 N West St., Raleigh, NC 27603
Kimberly D. Bose, FERC, 888 First Street NE, Washington, D.C. 20426
Todd Bowers, EPA, Sam Nunn Federal Center, 61 Forsyth Street SW, Atlanta, GA 30303
Fred Tarver, DWR Basin Planning Branch (via [e-mail])
Chris Goudreau, NC Wildlife Resources Commission (via [e-mail])
Bryan Tompkins, US Fish and Wildlife Service (via [e-mail])
DWR WSRO 401 file
DWR 401 & Buffer Permitting Branch file
Filename: 150759v2WardMillHydroelectricProject(Watauga)_401_IC.docx

Mr. Ray F. Ward
DWR# 15-0759 v2
Individual Certification #4067
Page 3 of 6
CERTIFICATION #4067 is issued in conformity with the requirements of Section 401, Public Laws
92-500 and 95-217 of the United States and subject to North Carolina's Regulations in 15A NCAC
1 .0 500, to Mr. Ray F. Ward, who has authorization• •. -• below,described
within your application received by the N.C. Division of Water Resources (DWR) on July 29, 2015
and subsequent information on August 20, 2015, July 15, 2016 and July 19, 2016, and by Public
Notice -• by DWR on September0
The State of North Carolina certifies that this activity will not violate the applicable portions of
Sections 301, 302, 303, 306, 307 of the Public Laws 92-500 and PL 95-217 if conducted in
accordance with the application, the supporting documentation, and conditions hereinafter set
forth.
1. The project must be operated in run -of -river mode, such that outflow equals inflow, except
during emergency or scheduled maintenance drawdowns or refills. This will be accomplished
by maintaining the reservoir level within 1 inch of the crest of the dam and continuing to
operate a float gage that will automatically stop the turbine(s) if the reservoir level drops
below the crest of the dam so that water can spill over the dam within 1 hour of turbine
shutoff.
2. Project operating records, consisting of inflow, impoundment stage and generation, must be
maintained to ensure run -of -river operation and to document maintenance and emergency
drawdowns. Inflow to the project is available on a 15 -minute interval from the U.S.
Geological Survey (USGS) gage (#03479000) located just upstream of the reservoir.
Installation of a water level data logger or pressure transducer within the project
impoundment set to collect data at 15 -minute intervals would provide the impoundment
stage data required above. Project generation data shall also be provided in 15 -minute
intervals.
Upon request, the licensee shall provide DWR with project operating records to document
compliance with terms and conditions of the license. These will include records of inflow,
impoundment stage data and project generation data from the purchasing utility as described
above. DWR will only request these records if there is information that indicates the project
may have been out of compliance. All data should be provided electronically in spreadsheet
format.

Mr. Ray F. Ward
DWR# 15-0759 v2
Individual Certification #4067
3. A low -flow rating curve of minimum flow releases in the tailwater during drawdowns must be
established. A calibrated staff gage indicating the water elevation corresponding to the
minimum release should be installed and maintained in an easily viewed location in the
tailwater reach. Installation should follow U.S. Geological Survey procedures to assure an
accurate measurement of stage vs. discharge. This gage should be installed and calibrated
within 6 months of license issuance. Its calibration should be verified at least every two years
thereafter. All initial calibration and re -calibration measurements, including field data, should
be provided to the DWR within 30 days of data collection.
4. A sediment management plan must be developed with the DWR and other resource agencies
prior to any actions to open the sand gates or dredge sediment from the reservoir. The plan
shall include provisions for the following: (1) monitoring; (2) developing a schedule; (3)
removal of sediment from the impoundment; and (4) requiring approval of the DWR - 401
and Buffer Permitting Branch prior to dredging sediment from the reservoir or opening sand
gates.
5. The following drawdown and refill procedures for emergency and maintenance drawdowns
shall be implemented: (1) conduct maintenance drawdowns when inflow is greater than 50
cfs; (2) limit the drawdown rate to 6 feet per day; (3) release inflow to the tailrace while the
impoundment is drawn down; (4) refill only when inflow is greater than 50 cfs; (5) when
refilling, release a minimum of 50 cfs in the tailrace; (6) notify the resource agencies as soon
as possible, but no later than 10 days after each drawdown event.
6. Operation and maintenance of existing recreation facilities shall be continued. These facilities
shall also be monitored for erosion to provide abatement if found.
7. Sediment and Erosion Control for any project -related construction
During any project -related construction, erosion and sediment control practices must be in
full compliance with all specifications governing the proper design, installation and
operation and maintenance of such Best Management Practices. If applicable, the project
must comply with the specific conditions and requirements of the NPDES Construction
Stormwater Permit issued to the site and the following requirements [15A NCAC 02H
.0506(b)(3) and (c)(3)]:
a. Design, installation, operation, and maintenance of the sediment and erosion
control measures must be such that they equal or exceed the requirements specified
in the most recent version of the North Carolina Sediment and Erosion Control
Manual. The devices shall be maintained on all construction sites, borrow sites, and
waste pile (spoil) projects, including contractor -owned or leased borrow pits
associated with the project.
b. For borrow pit sites, the erosion and sediment control measures must be designed,
installed, operated, and maintained in accordance with the most recent version of
the North Carolina Surface Mining Manual.

Mr. Ray F. Ward
DWR# 15-0759 v2
Individual Certification #4067
Page 5 of 6
c. Reclamation measures and implementation must comply with the reclamation in
accordance with the requirements of the Sedimentation Pollution Control Act and
the Mining Act of 1971.
d. Sufficient materials required for stabilization and/or repair of erosion control
measures and stormwater routing and treatment shall be on site at all times.
e. The sediment and erosion control designs must comply with the requirements set
forth in 15A NCAC 04B .0124 Design Standards in Sensitive Watersheds.
8. No waste, spoil, solids, or fill of any kind shall occur in wetlands, waters, or riparian areas.
All construction activities, including the design, installation, operation, and maintenance of
sediment and erosion control Best Management Practices shall be performed so that no
violations of state water quality standards, statutes, or rules occur. [15A NCAC 02H .0501
and .0502]
9. Sediment and erosion control measures shall not be placed in wetlands or waters.
Exceptions to this condition require application submittal to and written approval by DWR.
If placement of sediment and erosion control devices in wetlands and waters is
unavoidable, then design and placement of temporary erosion control measures shall not
be conducted in a manner that may result in dis-equilibrium of wetlands, stream beds, or
banks, adjacent to or upstream and downstream of the above structures. All sediment and
erosion control devices shall be removed and the natural grade restored within two (2)
months of the date that the Division of Energy, Mineral and Land Resources (DEMLR) or
locally delegated program has released the specific area within the project. [15A NCAC 02H
.0501 and .0502]
10. This approval is for the purpose and design described in your application and as described in
the Public Notice. The plans and specifications for this project are incorporated by reference
and are an enforceable part of the Certification. If you change your project, you must notify
DWR and you may be required to submit a new application package with the appropriate
fee. If the property, project or license is sold, the new owner must be given a copy of this
Certification and is responsible for complying with all conditions. Any new owner must
notify DWR and request the Certification be issued in their name. [15A NCAC 02H .0501
and .0502]
11. This Certification grants permission to the Director, an authorized representative of the
Director, or Department of Environmental Quality (DEQ) staff, upon the presentation of
proper credentials, to enter the property during normal business hours. [15A NCAC 02H
.0502 (e)]
12. This Certification neither grants nor affirms any property right, license, or privilege in any
waters, or any right of use in any waters. This Certification does not authorize any person
to interfere with the riparian rights, littoral rights, or water use rights of any other person

Mr. Ray F. Ward
DWR# 15-0759 v2
Individual Certification #4067
Page 6 of 6
and this Certification does not create any prescriptive right or any right of priority regarding
any usage of water. This Certification shall not be interposed as a defense in any action
respecting the determination of riparian or littoral rights or other rights to water use. No
consumptive user is deemed by virtue of this Certification to possess any prescriptive or
other right of priority with respect to any other consumptive user regardless of the quantity
of the withdrawal or the date on which the withdrawal was initiated or expanded. Pursuant
to the Federal Power Act, Section 27, 16 U.S.C. § 821, the Federal Energy Regulatory
Commission License to which this Certification is directed does not establish or determine a
proprietary right to any use of water.
13. Continuing Compliance
Mr. Ray F. Ward shall conduct project operations and any construction activities in a manner
consistent with State water quality standards (including any requirements resulting from
compliance with section 303(d) of the Clean Water Act) and any other appropriate
requirements of State and Federal law. [15A NCAC 0213 .0200] If DWR determines that such
standards or laws are not being met (including the failure to sustain a designated or achieved
use) or that State or federal law is being violated, or that further conditions are necessary to
assure compliance, DWR may reevaluate and modify this Certification in accordance with 15A
NCAC 02H .0507(d). Before modifying the Certification, DWR shall notify Mr. Ray F. Ward and
the Federal Energy Regulatory Commission (FERC), provide public notice in accordance with
15A NCAC 02H .0503 and provide opportunity for public hearing in accordance with 15A
NCAC 02H .0504. Any new or revised conditions shall be provided to Mr. Ray F. Ward in
writing, shall be provided to the FERC for reference in any permit or license issued by that
agency, and shall become conditions of the FERC License for the project.
This approval to proceed with your proposed impacts or to conduct impacts to waters as
depicted in your application shall expire upon expiration of the new FERC license and any
Annual Licenses issued after the expiration of the new License.
Non-compliance with or violation of the conditions herein set forth may result in revocation of
this Certification and may also result in criminal and/or civil penalties.
This the 8th day of September 2016
v
Karen Higgins, Supervisor
401 & Buffer Permitting Branch
KAH/jab
4067