20080915 Ver 1_Public Notice_20080704

CRA AND RECORD
An update on Catawba-Wateree Relicensing Activities
Provided by the Catawbo-Wateree Final Agreement Committee (FAC) It's about balance!
A Lot to Cover
Mark Oakley, Duke Enemy
My dad used to say to me: "Boy, I'm going to have
to drive a stake in the ground beside you to see if
you're moving or not!" That's the way we've felt
about the Catawba-Wateree relicensing process
from time to time. While I have not gotten much
faster, relicensing activities have really accelerated
recently and for the rest of the year are expected to
continue to move at a faster pace than we've seen
so far.
July 4, 2008
Issue 7
On February 28, 2008 FERC issued its Final Scoping
Document. On April 3, 2008, FERC sent Duke a 32-
item additional information request on the license
application. On April 7, 2008, FERC announced that
the Catawba-Wateree application was Ready for
Environmental Analysis. This last FERC action
created a flurry of activity to meet a June 6, 2008
deadline for CRA Parties and others to file
recommended terms and conditions with the FERC,
for Duke to file its 401 Water Quality Certification
Applications in NC and SC, and for the US Fish and
Wildlife Service and National Marine Fisheries
Service to file preliminary fish passage prescriptions
with the FERC. During the remainder of 2008 there
will be comment periods on the 401 Water Quality
Certification applications and also on the Draft
Environmental Impact Statement expected from
FERC late this year.
During the same period of time, CRA Parties and
others were making spectacular things happen. This
issue of the CRA News and Record highlights these
achievements, which include the completion of an
Upper Catawba Public Access Agreement,
INSIDE THIS ISSUE
A Lot to Cover ............. .....................1
2008 CRA Commitments..... .......2
Upper CatawbaPublic Access Open' Space and Traits .... 2
Fish Passage Accord is Signed! ........................... 3
Drought Update ............. .........................,...5
Water Management Group Update ........................ 6
Keep Talking ....................... ......................6
Is your Designated Representative Up to Date? ......... 8
CWadmin. com .............................................. 8
What does "401" mean? ....................................8
Catawba-Wateree Relicensing Process Schedule .......9
completion of a Fish Passage Agreement (Accord),
continued development of Water Management Group
plans, and continued drought management
stewardship by the C-W Drought Management
Advisory Group.
You will notice a slightly different format in this
newsletter. CRA Parties and others who contributed
articles are recognized with a by-line in the title of
their article. Thanks to these folks for taking the time
to share their stories with all Parties. If you want to
contribute an article or just want a question answered,
contact Mark Oakley (704-382-5778;
[e-mail]).
Your current FAC members are:
Mike Bailes ............ ........ [e-mail]
Barry Beasley ......... .............. [e-mail]
Tony Bebber .......... ................ [e-mail]
Maurice Blackburn. mblackburnl @carolina.rr.com
Marc Collins ........... ........ [e-mail]
Gary Faulkenberry . ... [e-mail]
Chris Goudreau ..... [e-mail]
Barry Gullet ............ ...... [e-mail]
Jeff Lineberger....... ... [e-mail]
Steve Reed ............. ......... [e-mail]
Al Sharp ................. .......... [e-mail]
Vicki Taylor ........... ....... [e-mail]
Page 2
CRA News and Record
2008 CM Commitments
Mark Oakley, Duke Energy
• CRA Section 4.5.2: By March 1, 2008 - Associated Public Access. Open Space and Trails Planning
- The date for this commitment was extended by mutual agreement of the affected Parties and
the Final Agreement Committee to May 1, 2008. On April 30, 2008 Duke Energy Carolinas, LLC,
Duke Ventures, LLC, Crescent Resources, LLC, and the NC Department of Environment and
Natural Resources (NCDENR) signed an agreement that provided a larger benefit than any party
envisioned at the outset of the negotiations. Refer to Steve Reed's article in this newsletter.
• CRA Section 9.3.2.5: By the end of 2008 - Vegetation Management - Duke has provided $20,000
to the SC Department of Parks Recreation and Tourism for clearing vegetation that threatens the
stability of the Dearborn Armory site.
• CRA Section 10.4: By August 31, 2008 - Maintenance Agreement with NCWRC - Duke and the NC
Wildlife Resources Commission (NCWRC) have signed a new agreement for maintenance of boat
launches, public fishing areas, and parking facilities at the Licensee's access areas in North
Carolina for the term of the New License. The new agreement took effect on July 1, 2008.
• CRA Section 14.1: By August 31, 2008 - Facility Exclusion Zones - The proper statutes and
regulations are now in place in both NC and SC to enable NCWRC and the SC Department of
Natural Resources to enforce areas upstream and downstream of Catawba-Wateree dams that are
now more appropriately called "safety zones" rather than exclusion zones. Duke is working with
both agencies to properly word the signs that will delineate these new safety zones. Duke will
then have the signs made and installed.
• CRA Appendix K: By the end of 2008 - Template for a Memorandum of Understanding between
the Licensee and States, Counties, and Municipalities - Parties will review the effectiveness of the
MOU to evaluate potential modifications that more adequately address the purpose of the MOU,
which is to promote coordination of land and/or water management responsibilities among Duke
and local governments.
Public Access, Open Space and Trails Agreement to Result in 2600 Acres
of Conservation Lands along the Johns River in North Carolina
Steve Reed, NC Department of Environment and Natural Resources
The North Carolina Department of Environment
and Natural Resources (NCDENR), Duke Energy
Carolinas, LLC (Duke Energy), and Crescent
Resources, LLC (Crescent) negotiated for almost
two years on where public access would be
provided on the conservation easements along the
Johns River and Bridgewater Regulated River Reach
of the Catawba River. NCDENR convened and
worked closely with the Catawba-Johns Advisory
Committee throughout the planning process. On
April 30, 2008, NCDENR, Duke Energy, Crescent
and Duke Ventures signed an Agreement that will
provide significantly more public access, open
space and trail opportunities than any of the
negotiators could have imagined only a few months
earlier. On May It, Sec. Bill Ross of
(continued on next page)
Page 3
NCDENR sent a letter, as called for in Section 4.5.2
of the CRA, to the Signature Parties stating that the
planning process resulted in an Agreement that
NCDENR finds results in a level of public access,
open space and trail opportunities that is
acceptable. According to Section 4.5.3, since this
process resulted in an acceptable level of public
access to NCDENR, no Party to the CRA shall make
or support requests to FERC to require the Licensee
to provide additional public access, open space or
trails beyond those identified in Section 10.27 of
the CRA and the above Agreement.
The Agreement provides new trail easements
through some of the conservation easements along
the Catawba River and Warrior Fork in Burke County
and the Johns River in Caldwell County. The key
component of the Agreement provides NCDENR or
its designee the opportunity to purchase almost
2,600 acres of lands predominately along the
scenic Johns River in Burke County with some
parcels along the Johns River and Wilson Creek in
Caldwell County. Duke Ventures, a wholly owned
subsidiary of Duke Energy, has acquired the
properties from Crescent and will provide roughly
3-4 years for NCDENR to obtain funds from grants
and other sources to purchase the lands. Land
CRA News and Record
Purchase Options between The State of North
Carolina and Duke Ventures will be finalized by
March 1, 2009. Duke Ventures will reduce the
purchase price by $1,350 per acre, up to a total of
$3.5 million if all tracts are purchased. The
acquisition of these 2,600 acres of riverine
floodplains and uplands will help preserve a
functional ecological corridor between the Johns
River Gamelands at the confluence of the Johns and
Catawba rivers upstream to Wilson Creek Gorge
and the Appalachian Mountains. NCDENR and the
Catawba-Johns Advisory Committee plan to have a
celebratory float trip down the Johns River through
these beautiful lands later this summer or during
the fall.
The entire Agreement is available at the Catawba-
Wateree Relicensing Facilitation website at
www.cwadmin.com in the Party Information folder
or at our Division of Water Resources' website at
www.ncwater.org under the Special Topics header.
If you have any questions or would like additional
information regarding the Agreement, please
contact Steve Reed, Hydropower Licensing
Coordinator, at [e-mail] or 919-
715-5424.
Fish Passage Accord is Signed!
Mark Cantrell and Amanda Hill, US Fish and Wildlife Service
Well, when all the dust settled after the
Comprehensive Relicensing Agreement was
signed, many of you may have noticed that there
were still some unresolved issues, and you may
have noticed that the U.S. Fish and Wildlife Service
(USFWS) did not sign the CRA.
One of the reasons that the USFWS was reluctant
to enter into the CRA was that a chief concern of
the agency was not addressed - namely that of
diadromous fishes. The reason that diadromous
fish were not addressed in the CRA was that this
issue involved much more than just the
Catawba-Wateree Hydroelectric Project, fish
passage, flows, or even Duke Energy.
Diadromous fish restoration is an inter-
jurisdictional issue that involves many interested
parties and objectives that are broader than
those typically resolved in a relicensing
settlement agreement, even for a large
hydroelectric project like the Catawba-Wateree.
(continued on next page)
Page 4
CRA News and Record
So, quietly, over the past couple of years since the
CRA was signed, the USFWS, the South Carolina
Department of Natural Resources, the North
Carolina Wildlife Resources Commission, South
Carolina Electric and Gas and Duke have been
working out the details of an agreement to restore
diadromous fish in the Santee River Basin which
includes the Catawba-Wateree River Basin. With
participation from the National Marine Fisheries
Service, the South Carolina Department of Health
and Environmental Control, and Santee Cooper, the
group has developed a vision for restoration that
includes an initial 10-year action plan, a list of
restoration goals and actions, and provisions for
fish passage that extend for the life of the next C-W
FERC license known as the Santee Basin Fish
Passage Accord.
The group has embarked on an aggressive but
careful program of fish stocking, habitat research,
and monitoring that will extend through the next
license period.
Remember, diadromous fish were explicitly not
dealt with in the CRA, because of the complexity of
the issues, and a timeline that just did not allow
adequate resolution. Besides, diadromous fish
restoration is much larger than just the Catawba-
Wateree, and required a broader perspective - the
entire Santee Basin. The solution had to include
other parties and other sub-basins.
So, Duke, the USFWS, and the other parties were
careful to craft an agreement that would restore
diadromous fish in the most logical and efficient
manner, but in a way that did not "unravel" the hard
work of the CRA (and other agreements within the
Santee Basin), but achieved important objectives for
the C-W Project area, and contributed to the
restoration goals for the Santee Basin.
Important provisions of the Santee Accord include:
1. Funding for American shad fry stocking,
important to "jump-start" returning shad
populations.
2. Construction of a trap/sort/haul facility
at Wateree Dam to serve the upstream
spawning habitat for American shad and
blueback herring. This facility will be
constructed by 2018, and will provide
upstream passage to priority reaches of
the Catawba and Wateree rivers and
some of the larger tributaries.
3. Construction of American eel fishways at
each of the C-W Project developments in
a sequential order as eels progress
upstream. Plans are to construct
temporary/ portable manual ramp traps
in an orderly sequence beginning at
Wateree Dam, and proceeding upstream
through the Catawba-Wateree Project
developments to provide passage for
these fish.
4. Monitoring and research of diadromous
fish movement patterns in the basin.
There is much that we still need to know
and understand about how diadromous
fishes utilize the C-W and other parts of
the Santee Basin in its current and future
conditions.
The Santee Accord promises to be the most
efficient and cooperative means of restoring
migratory American shad, blueback herring, and
American eels to the Santee Basin. These
specific measures to provide access to habitat
that is currently inaccessible above dams will
increase diadromous fish in the Santee Basin,
while the monitoring and studies will provide
information needed to refine and guide our
conservation and enhancement efforts for these
important resources.
For more details about the Santee Accord, and
what it will mean for the C-W, contact Mark
Cantrell at 828/258-3939 (extension 227) or
Amanda Hill at 843/727-4707 (extension 303).
Page 5
Drought Update
Ed Bruce, Duke Energy
CRA News and Record
The drought in the Catawba-Wateree Basin has continued into the summer of 2008, with significantly
below average rainfall this year. The remaining storage in the reservoirs recovered to just above Target
levels earlier this spring from last fall's lowest points. However, low tributary streamflows and increased
natural evaporation have begun to impact reservoir storage again in 2008. The Catawba-Wateree
Drought Management Advisory Group (CW-DMAG) monitors remaining storage in the reservoirs, tributary
inflows, the US Drought Monitor and groundwater levels as part of the Low Inflow Protocol (LIP)
procedures that are contained in the CRA. The latest drought indicators used to monitor the drought are
shown graphically in the diagram below.
Catawba-Wateree Low Inflow Protocol (LIP) Trigger Status
Here
6/27/08
Reservoir Storage as a % of 6-Month Long 3-Month Avg of U.S.
% of Target Term Avg Streamflow Drought Monitor Groundwater Level

0
z 100% 85% 0
c 97.7
(down 6
3%)
{ 4
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CL . c
w 90% 786X- ,.t? s { ;a1YF ts`?-q^y"?

CL 4angtree

75°%u ..
x 65% 2... I
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CL d
_ IM
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57% 55% 3
; 46.0 ° 13.3 7
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down 0 V
Ll?v)14? a n xr
a
_ iup 0.1 /o) . I:.

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r r
42% 40% 4
.? 1 1 Glen Alpine
a ? (down 1)
J 1'.
N :
f
0/25/07
- Trigger data point
on 6/27/08(30-day change)
= Lowest trigger data
point reached since
LIP implemented in
August 2006
The Catawba-Wateree Basin entered LIP Stage 3 last October. Since that time, the drought
indicators did not moved up to LIP Stage 2. The basin remains in Stage 3 and the longer-term
predictions indicate that lower than average rainfall may continue throughout the summer
months. The CW-DMAG has been meeting continuously throughout the last year as part of the
efforts to manage the Catawba-Wateree Basin water resources.
Page 6 CRA News and Record
Water Management Group Update
Barry Gullet, Charlotte-Mecklenburg 'Utilities
The recommendation to create the Catawba-
Wateree Management Group (WMG) was a
major component of the CRA and has been
accomplished on-schedule. The purpose of
the WMG as stated in the CRA is "to pursue
initiatives that improve water and energy
conservation, drought management, and
water quality in the Catawba-Wateree River
Basin." Chartered in late 2007 with sixteen
member organizations, the WMG adopted a
5-Year Strategic Plan and has entered into
contracts to begin implementing that plan.
Through these contracts, Centralina Council
of Governments is compiling regional water
system maps that are needed to complete
regional water planning work and the WMG
was able to receive more than $180,000 in
outside funding over the next four years
through the United States Geological Survey
to complete a project to add ground water
monitoring wells. In May, the WMG was
pleased to receive IRS certification as a
501(c)(3) non-profit organization, opening
additional possibilities for receiving tax deductible
contributions to leverage member's dues.
Looking ahead, the WMG is poised to continue water
resources planning and coordination on a basin-wide
scale. Work is on-going on three fronts to better
understand, plan, and manage:
• Water demands;
• Water supply; and,
• Drought preparation and management.
Meetings of the WMG are open to the public and are
held at 10:00 a.m. on the second Tuesday of even
numbered months at the Lee S. Dukes Water
Treatment Plant in Huntersville, N.C. For more
information about the WMG, you can contact the
WMG Officers or any WMG member. Officers for
2008 are:
Chair Barry Gullet, Charlotte-Mecklenburg Utilities
Vice Chair Jeff Morse, Town of Valdese
Secretary/Treasurer Jeff Lineberger, Duke Energy
N.C. Director at Large Kevin Greer, City of Hickory
Keep Talking
Vicki Taylor
Knowing who to talk to, where to ask questions
and how to register concerns saves time, money
and aggravation. When stakeholders were meeting
regularly it was relatively easy to land our
requests, suggestions and complaints where they
needed to be. But since the license application
has been filed, some stakeholders - both Parties
and non-Parties - have been uncertain or unable
to get or give important information. Examples
include situations where filings were made to the
FERC where the underlying issue could have been
resolved by making a phone call or coming to the
Final Agreement Committee (FAC). The FAC has
learned we need to do a better job of reaching out
so that stakeholders know the best and most
effective ways of dealing with issues as they come
u p. (continued on next page)
Page 7
At our stakeholder meeting in January, 2008 we
started to do this but it is time to do more. At that
meeting I talked about the importance of vigilant
communication practices during this crucial time
when the FERC is assessing both the agreement we
signed and the license application. I asked for input
on how best to establish clear communication
channels, clear methodologies and timely updates.
Here is a summary of what you said with current
status on the suggestions in red:
-Continue to update us with timetables and
ongoing implementations
Being done by email and newsletter
• Continue the newsletter
Ongoing
• Provide access to FAC meeting notes
These are posted on the Kearns & West Web
site accessible to all Parties
-Advise Parties if they are about to miss a deadline
Recently a deadline was extended by mutual
agreement after affected Parties notified the
FAC of the need for more time. All Parties
were advised that the deadline was
extended. We will continue to work with
Parties so that deadlines are not missed or
are appropriately re-set if warranted.
CRA News and Record
• Notify Parties of opportunities for public
comment/public meetings, etc
Being done via newsletter and email
• Be more proactive in communicating
We are sending more frequent updates
The FAC needs your input to respond to your needs
for:
• Improving the Web site
• Helping Parties respond to rumors among
constituencies
-Training new representatives for Party
organizations as they come in
In addition, stakeholders said they would:
• Do a better job of passing along
communications to constituents in a timely
manner
• Ensure organizations are aware of the
contract and commitments - especially
when personnel changes
• Proactively notify Duke when designated
representatives change
Finally, the following table has a list of contacts
that you can refer to for various topics:
Topic Contact
CRA Compliance and Implementation Any Final Agreement Committee Member
CRA Implementation Mark Oakley: emoakleyCduke enery.com; 704-382-5778
CRA Designated Representative and Contact Information
Updates Tami Styer: tsstyerCduke-energy.com; 704-382-0293
FERC Relicensing Process Tami Styer: tsstyerCduke-enerpy_ com; 704-382-0293
Drought Management Advisory Group and Low Inflow
Protocol Ed Bruce: edbruce@duke-ener y.com; 704-382-5239
Water Management Group Barry Gullet: bgulletCci.charlotte. nc.us; 704-391-5098
Diadromous Fish Passage, Habitat Enhancement Program Hugh Barwick: [e-mail]; 704-382-0805
NC and SC Water Quality Certifications Mark Oakley: [e-mail]; 704-382-5778
Page 8
CRA News and Record
Is your Designated Representative Up to Date?
Ken Kearns, Kearns Er West
Remember the Comprehensive Relicensing
Agreement's Appendix B? It's the one that lists
each Party's designated representative for
receiving official notices. If it's not up to date for
your organization or you're just not sure, here's
what you should do; Check out the latest
Appendix B version (January 2008) on Duke's Web
site - go to "www.Duke-Energy.com/lakes", click
on "Catawba Lakes", then click on "Catawba-
Wateree Relicensing" then click on "Final
Agreement & Lake Summaries" and finally click on
"List of Parties to the Comprehensive Relicensing
Agreement." Whew!! Look over every part of it
(name, addresses, etc.) for your organization. If it's
not perfect, then send the correct information to Mark
Oakley ([e-mail]). If it is perfect,
let Mark know that too. According the CRA, "Each
Party shall be responsible for providing the Licensee
with their updated contact information in a timely and
accurate manner."
CWAdmin.com - the Parties' Information Web site
Ken Kearns, Kearns Et West
Even if there's not 8-10 stakeholder meetings
every month, there's still a lot going on that's of
interest to the CRA Parties, and most of it can be
found on the CWAdmin Web site.
Sure, many of its folders don't see much action
these days, but the folders near the bottom have
info to keep you up to date on Party Information,
the Final Agreement Committee, the Water
Management Group, and the Drought Management
Advisory Group. Checking previous newsletters (CRA
News & Record) on the site is always a good way to
review what's been going on.
If you're not getting an occasional notice of a Web site
posting, please contact Amanda Piasecki (202-535-
7800, [e-mail]) to get signed up.
Also let her know if there are others in your
organization (Parties only) that should have access to
the site.
What does "401" mean?
Mark Oakley, Duke Energy
On Thursday June 5, Duke delivered water quality certification applications to the NC Division of Water
Quality (NCDWQ) and to the SC Department of Health and Environmental Control (SCDHEC), thereby
initiating the Catawba-Wateree Section 401 Water Quality Certification processes. All CRA Parties should
consider sending comments to NCDWQ and SCDHEC that: 1) recommend the Flow and Water Quality
Implementation Plan (CRA Appendix L) and the Water Quality Monitoring Plan (CRA Appendix F) as
conditions of the 401 Water Quality Certifications, 2) support the value of the mitigation packages (CRA
Sections 4.5 and 4.6), 3) promote the long-term sustainable balance of water uses represented in the CRA,
and 4) describe how your particular water use interests (drinking water, recreation flow, aquatic habitat,
industrial water use, etc...) are met via the CRA.
NORTH CAROLINA: Comments must be received no later than July 31, 2008 at the following address:
NC Division of Water Quality; Attn: John Dorney; Water Quality Section; 2321 Crabtree Boulevard, Suite 250;
Raleigh, NC 27604
SOUTH CAROLINA: The SCDHEC process works a little differently. SCDHEC will soon issue instructions to
Duke for publishing public notices in SC newspapers, which will include public comment instructions. I will
send an e-mail to all Parties providing this information as soon as I receive it.
Page 9 CRA News and Record
Catawba-Wateree Relicensing Process Schedule
Agencies, hbes and public
filedmcomandedlens
` and conditions, including
10 ` ` pmliminary 6sh passage
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J F M A M J J A S 0 D J F M'
2008 2009
J F M A M JI JI R S 0 N D J f M
DEIS public
notice period
FERC conducts pubic
meetings Iocolled
comments on the DEIS.
January IM
NOTE RII dates aye estmated based op the Ocal6mehme assodated with the PERC Tiadifiomal U mOg Process,
Dates aye subject to chamge based on FERC comoetioms.