19991055 Ver 1_COMPLETE FILE_20000114

i
k MAY 1 5 2000

Employee Owned
May 11, 2000
Linwood A. Watson, Jr., Acting Secretary
Federal Energy Regulatory Commission
888 First Street, N.E., Room 1 A
Washington, D.C. 20426

RE: Nantahala Power and Light
Queens Creek Hydroelectric Project (FERC No. 2964-002)
Dear Secretary Watson:
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As a member of the public of the State of North Carolina, representing both my
own interests and that of the Nantahala Outdoor Center, I request the Federal Energy
Regulatory Commission include the following comments in the official file of the
aforementioned project and to give them full consideration when determining the
operational constraints under which Nantahala Power and Light will be ordered to
operate this project during the term of its new license.
I am the president of Nantahala Outdoor Center (NOC), which is an outdoor
education and recreation business located in Swain County, NC. I serve the county and
my community on the Economic Development Commission for Swain County, on the
Work Force Development Board of the Western Region of NC (Region A), and as a
member of the Nantahala Gorge Association, a group of outfitters and related businesses
that operate in and around the Nantahala River area. I have a PhD in Plant Physiology
and, before joining NOC, I taught and did research at North Carolina State University.
Here are my comments at the present time:
1. I am concerned about the possible loss of recreational opportunity through the
release of "minimum flows" into the by-pass area below the dam. First, these
"minimum flows" could cause the lake to drop too low to be effective for
recreation on Queens Lake. We utilize the lake for canoe and kayak instruction
and it is a popular place for local residents as well. Also, any changes in the point
of release or in the amount of flow released could eliminate or reduce the boost in
river flow in the Nantahala River that occurs in the afternoon when NP&L is
using this water for peaking power. While it is small, it does enhance the
recreational experience of the river user at that time.
2. I am concerned about the expense of relicensing and would like to urge that
mitigation projects for the lake itself and the county and region be considered and
prioritized before a lot of possibly superfluous studies and payments of huge sums
of money in litigation over these studies. There is no end to the number and
13077 Highway 19 West, Bryson City, N.C. 28713-9114 • [phone] • FAX [phone]
www.noe.com
extent of studies that could be done and each one of them will have a cost.
Western North Carolina in general, and Swain County in particular, is considered
economically depressed. Money could be used far more effectively for mitigation
in this area such as enhancements for local communities.
3. I believe that habitat has been a concern for some folks. According to NP&L, the
fish population in this creek from the road to the Nantahala River is equal to or
better than numerous unregulated streams inside and outside the National Park_
4. I ask that as much time and energy be spent working cooperatively among the
stakeholders to resolve issues in a productive and efficient way so that money is
spent on projects of use to the region and not on a myriad of studies and litigation.
5. I am also enclosing a paper on the `Economic Impacts of Rafting on the
Nantahala River" which will provide some information on the economic
implications of this tourism attraction to this area of western North Carolina.
Thank you for this opportunity to comment on this project.
Sincerely,

Elizabeth B. Johns
President
Service Distribution Mailing List
Nantahala Power and Light -
Queens Creek Project No. 2694
Area Director, MS260-ARLSQ
US Bureau of Indian Affairs
Eastern Area Office
M.S. 260-VASQ
Arlington, VA 22201
Regional Engineer
Federal Energy Regulatory Comm.
Atlanta Regional Office
3125 Presidential Parkway, Suite 30
Atlanta, GA 30340-3700
Attorney General
North Carolin Office of Attorney
Dept. of Justice
PO Box 629
Raleigh, NC 27602
Mr. Bill Anderson
NC DWQ
59 Woodfin Place
Asheville, NC 28801
Mr. Jim Blose
NC Division of Water Quality
512 N. Salisbury Street
Raleigh, NC 27604
Ms. Sally Browning
US Forest Service
90 Sloan Road
Franklin, NC 28734
Director
North Carolina Recreation Division
Dept. of Natural Resources and Comm.
P.O. Box 27687
Raleigh, NC 27611
Director
North Carolina Forest Resources
Dept. of Natural Resouces & Comm.
PO Box 27687
Raleigh, NC 27611
Mr. Harry Abercrombie
160 Gold Creek
Topton, NC 28781
Mr. Ted Blisterfield USEPA, Region 4
Office of Environmental Assessment
Atlanta Federal Center
100 Alabama Street
Atlanta, GA 30303-3104
Ms. Cynthia Brown
US Fish and Wildlife Service
Ecological Services
1875 Century Boulevard, Suite 200
Atlanta, GA 30345
Mr. Brian Cole Supervisor
US Fish and Wildlife Service
160 Zillicoa Street
Asheville, NC 22801
Mr. Mark Davis Habitat Conservation Program
NC Wildlife Resources Commission
20830 Great Smoky Mtn. Expressway
Waynesville, NC 28786
Mr. John Dorney
NC DENR
4401 Reedy Creek Road
Raleigh, NC 27607
Mr. John Ellis
US Fish and Wildlife Service
Raleigh Field Office
P.O. Box 33726
Raleigh, NC 27636-3726
Mr. Edwin L. Gavin, 11 Esquire
NC Dept. of Justice
P.O. Box 629
Raleigh, NC 27602-0629
Mr. Chris Goudreau Coordinator
NC Wildlife Resources Commission
Route 6, Box 685
Marion, NC 28752
Mr. George Hemingway Coordinator
US Forest Service
Southern Region
1720 Peachtree Road, N.W.
Atlanta, GA 30367
Dr. Elizabeth Johns President
Nantahala Outdoor Center
13077 Hwy 19 West
Bryson City, NC 28713
Ms. Molly Diggins
Sierra Club, NC Chapter
1024 Washington Street
Raleigh, NC 27605
Dr. Gary Duven Director
Wesser Institute of Ecology
P.O. Box 177
Almond, NC 28708
Mr. John Flaig
102 Sunset Drive
Topton, NC 28781
Ms. Renee Gledhill-Earley
NC Dept. of Cultural Resources
109 East Jones Street
Raleigh, NC 27611
Mr. John H. Harrington Regional Solicitor
US Dept. of the Interior
75 Spring Street S. W.
Suite 1328
Atlanta, GA 30303
Dr. Donley Hill
US Forest Service
P.O. Box 2750
Asheville, NC 28802
Mr. Ray Johns Hydroelectric Coordinator
US Forest Service
160A Zillicia Street
Asheville, NC 28802
Mr. Scott Loftis
NC Wildlife Resources Commission
20830 Great Smoky Mtn Expressway
Waynesville, NC 28786
Mr. Chuck McGrady
Sierra Club, NC Chapter
104 Sunningdale Drive
Flat Rock, NC 28731-9567
Mr. Jim Mead
Dept. of Environmental and Natural Resources
P.O. Box 27687
Raleigh, NC 27611
Mr. Steve Reed
Division of Water Resources
1611 Mail Service Center
Raleigh, NC 27699-1611
Mr. John Wagner
3494 Winding Stairs Road
Topton, NC 28781
Mr. John Wishon Nantahala Relicensing Project Manager
Nantahal Power & Light
301 NP&L Loop
Franklin, NC 28734
Mr. Franklin T. McBride Manager
NC Widlife Resources Commission
Habitat Conservation Program
512 N. Salisbury Street
Raleigh, NC 27604-1188
Mr. Daniel McLawhorn General Counsel
NC Dept. of Environment
1601 Mail Service Center
Raleigh, NC 27699-1601
Mr. Bobby Queen
P.O. Box 1042
Andrews, NC 28901
Mr. Fred Traver Aquatic Ecology Branch
NC Division of Water Resources
1611 Mail Service Center
Raleigh, NC 27699-1611
Mr. Michael L. Wilkins District Ranger, USFS
Wayah Ranger District
90 Sloan Road
Franklin, NC 28734
Economic Impacts of Raft;.ng on the Nantahai.,i River-
Donald S.K. English, Ph.D.
Southern Research Station
Athens, GA
14 -Decentber 1995
This report presents preliminary findings of the e-c.,otlor'nic
impacts of guided and nonguided rafting on the N'antaha la River to
tile combined eeonorly of Macon, Cherokee, and Swain Counties,
North Carolina. Results at-e derived from expenditure surveys
returned from 590 nonlocal (nonresidents of the two counties)
visitors who ran the Nantahala River during 1994. he-pondents
were divided into four groups: those in rented rafts with guide,
in the boats (N=103), those in rented rafts or inflar3ble kayaks
without guides in them (N=288), those in privately owned
hardboats (canoes or ayaks) (N=108), and a residual other
category 'N=-91). ;Separate analyses were conducted for the
guided, unguided, and private groups. No analysis was performed
for the residual group.
Survey respondents were asked to report the amount of money
they spent. in Macon County during their trip. Since the region
of interest, included Swain County 3s well, reoults presented here.
should be conservative estimates of the total impact t?f
visitation to the Nantahala to the combined economy. Total
expenditures were divided by the number of people for whom the
respondent paid expenses, yielding expenditures per person per
trip.
Ot, average, people on guided trips spent $46,04 pcr person
in Macon County (Table 1) People on nangui.ded triFs :;pent
$47.33 pff ..- person, and pri.vat.(_ haidboaters spent $5`! .15 per.
I-)ersorf in Macon County. These on guided tries spent. -.tle most- o:
hot".NIs ?',+?i:?Urdllt ZIIK! C-)Ut'f).?tel fees. `jlw.-,!z,! on ;.I "jlllc?r?{7 i,.t:'1L
::pent the r;c?st on equipment rentals alld souve'lli.rs, a.-i thr-
on hotels. People using their own canoes and kayaks :-;pent the
most on campground fees, on all locging expenditures, and on
clothing, but comparatively little on outfitters or r<rlipme.lt
rentals.
The IMPLAN system was used to estimate economic impacts.
Per person expenditures were allocated to IMPLAN secl.ors
following the algorithm outlined in English, et al., (:1995)
This analysis used 1992 base year data and commodity prices.
Table 2 shows the economic impacts per 1000 visitors.
$ecause IMPLAN is linear system, multiplying these impa<:ts by
current nonlocal ute figures yield:; estimates of the c:ontributinn
of current visitait.on to the economy of the two counties.
Similarly, if a po'.icy change under consideration is F-!xpected Co
result in Z thousand increase (decrease) in nonlocal visitation ,
then multiplying the values in Table 2 by Z yields t..he economic
increase (decrease) of the policy change as it affects use of the
Nantahala River.
Dirrc_t impacts are the value of inputs used by the
businesses frequented by the visitors to produce the final goods
and services purchased by those visitors. Indirect impacts are
the v,31ue of the production used in serving t.-.he businesses
directly affected by recreational spending. Induce(? impacts are
caused by workers and proprietors speriding the incom- they g i s
a result of the visitor :,pending guides -spending thQ wag's:,
they recii.-ved from taking people ,!own the river) . 'n)t.al impacts
.ire simply the surf of these three type,, (_;f impactti.
Fotlr types of economic indicators are used. `oUa1
industrial output (TIO) measures the value of produced goods and
services. Total income (TI) is the sum of income accruing to
business, proprietors and wages paid to employees. Value added
(VA) mca sores the difference between the value of inputs
purchased and the value of products sold. Employment is the
number of full-time equivalent jobs.
For all economic indicators, differences in impacts per
1000 visitors are nearly identical. For guided visitors, impacts
per 1000 visitors on TIO and TI are $61,900 and $36,400
respectively. For 100o unguided visitors, the impacts to TIO and
TI are $63,500 and $36,700. The impacts of 1000 private
hardboaters is slightly higher for both TIO {$67,E300) and TI
($40.0). Moneys spent by 1000 visitors produce between 1.7 and
1.8 full.-time jobs in the three counties. The relatively low
indirect: impacts indicates that many businesses in these counti.e."',
purchase, a good deal of their inputs from outside this small
economy (perhaps from businesses; located in Asheville,
Greenville, or Knoxville).
'table 3 shows the six economic sectors that are primarily
affected by visitor spending, for industrial output. and
empl oym??rit . About seventy percent of all employment impacts
caused ?)y recreation visitation occur in these sip: 13ec t<_?r;:;. Irl
addit. i ()n, these six :,ectors account for about 50 percent. of al.t
`i'IO. Impacts from guided visit;->x'5 are most.. concent.rat..ed in
sector-:;, and impacts from private hardboaters, arf: l.east
c_onc(=r,trat.ed in there sectors.
fable 1-- Spending pat tE rns, by boater t fT'•_
Item
Hotel
Camping
Food at SC(--,res
Restaurants
Car rental
Gasoline
Car repaid.;
Fishing Permits
Fishing Bait
Outfitter Fees
Equipment rental
Film purchase
Film development
Footwear
Clothing
Souvenirs
Other
GUIDED UNG_ 'U_IDEp PP
TvATE
r
- *- - ?- - - pet person per _
trip)
--?_.
14.61 8.00 _
11 1,
0.85 2,19 7
05
3.71 4.64 .
5
39
7.89 5.91 .
"1.34
0.10 0.01
0.x,0
2.19 2.91 3.06
0.00 0.04 0.43
0.00 0.19 0.23
0.00 0.05 0.00
6,95 i.?:. 2.56

0.50 0.44 0..34
0.25 0.05
0.00
0.03 0.42 0.75
1.34 2.39 7.15
1.91 3.99 0.95
1.43 2.40
3 .111
Total
I'able 2-- Industrial output and employment
per 1000 vioitors, for selected economic: sector;;
SECTOR DESCRIPTION
Guided Unguided Private
INDUSTRIAL, OUTPUT
Hotels and other lodging
Amusement/recreation services
Eating and drinking places
Service stations
Miscellaneous retail stores
Food Stores
°s of total impacts
EMPLOYMENT
Hotels and other lodging
Amusement/recreation services
Eating and drinking places
Service stations
Food stores
Misc ellaneouo retail stores
°s of total impacts
(thousands of 1992 dollars)
12.1 8.2 14.3
7.6 10.8 3.7
9.2 7.4 8.7
1.7 2.1 2.6
1.9 2.3 2.4
1.5 1.7 1.8
53.7 50-5 48.5
(# of Full-time equivalents)
.50 .34 .59
.32 .45 .16
.34 .28 .33
.04 .05 .05
06 .07 .08
.06 .07 .019
72.9 69.6 68.3
Tabl 2 -- Economic impacts to Macon, Swain, and Cherokee
counties per 1000 visitors eo the Nantahala River.
Total
Industrial Total Value
Output Income Added Jobs
(-- Thousands of 1992 dollars (4pTE)
GUIDED:
Direct. _10.6 18.1 20.6 1.14
Indirec:!t 4.1 2.3 2.4 0.07
Induced 27.3 16.1 18,1 0.52
TOTAL 61.9 36.4 4111 1.72
UNGUIDED:
Direct_ 31.4 18.0 20.2 1.13
1ndirec:c 4.7 2.6 2.8 0.08
Induc(2d 27.3 16.1 18.1 0.52
TOTAL 63.5 36.7 41.1 1.73
PRIVATE
Direct_ 34.6 20.6 23.7 .1.20
1ndir.-,_ct; 7.07

TO't'A;J 0 ?.o yv..a
State -of North Carolina
Department of Environment
and Natural Resources
Division of Water Quality
James B. Hunt, Jr., Governor
Bill Holman, Secretary Kerr T. Stevens, Director
1••
1
NC ENR
NORTH CAROLINA DEPARTMENT OF
E.NvIRONMENT AND NATURAL RESOURCES
November 30. 2000
Mr. John Wishon
Nantahala Relicensing Project Manager
Nantahala Power & Light
301 NP&L Loop Road
Franklin, NC 28734
Dear Mr. Wishon:
Re: Certification Pursuant to Section 401 of the Federal Clean Water Act,
Proposed Queens Creek Hydroelectric Plant-FERC License Renewal
WQC Project # 991055; FERC# 2694
Macon County
Attached hereto is a copy of Certification No.3244 (revised) issued to the Nantahala Power
& Light, a Division of Duke Energy Corporation dated November 30, 2000.
If we can be of further assistance, do not hesitate to contact us.
Attachments
cc: Asheville DWQ Regional Office
File Copy
Central Files
Fred Tarver; NC Division of Water Resources
Chris Goudreau, NC Wildlife Resources Commission
Federal Energy Regulatory Commission, Washington, D.C.
Division of Water Quality • Wetlands/401 Unit
1621 Mail Service Center • Raleigh NC 27669-1621 • Telephone [phone] • FAX # [phone]
An Equal Opportunity Affirmative Action Employer
50% recycled/10% post consumer paper
'• . # 2
NORTH CAROLINA 401 WATER QUALITY CERTIFICATION
THIS CERTIFICATION is issued in conformity with the requirements of Section 401
Public Laws 92-500 and 95-217 of the United States and subject to the North Carolina Division
of Water Quality (DWQ) Regulations in 15 NCAC 2H, Section .0500. It is issued to Nantahala
Power and Light Company, a Division of Duke Energy Corporation in Macon County pursuant
to an application filed on the ls` day of October, 1999 to relicense the Queens Creek
hydroelectric project and a Settlement Agreement dated October 26, 2000 (received November 6,
2000).
The application provides adequate assurance that the. discharge of fill material into the
waters of Queens Creek in conjunction with the proposed development will not result in a
violation of applicable Water Quality Standards and discharge guidelines. Therefore, the State
of North Carolina certifies that this activity will not violate the applicable portions of Sections
301, 302. 303, 306, 307 of PL 92-500 and PL 95-217 if conducted in accordance with the
application and conditions hereinafter set forth.
This approval is only valid for the purpose and design that you submitted in your
application. as described in the Public Notice. If you change your project, you must notify us
and send us a new application for a new certification. If the property is sold. the new owner must
be given a copy of the Certification and approval letter and is thereby responsible for complying
with all conditions. If total wetland fills for this project (now or in the future) exceed one acre
or total perennial stream impact exceeds 150 feet, compensatory mitigation may be required as
described in'15A NCAC 2H .0506 (h) (6) and (7). For this approval to be valid, you must follow
the conditions listed below. In addition, you should get any other federal, state or local permits
before 'vou Qo ahead with your project including. (but not limited to) Sediment and Erosion
control, Coastal Stormwater, Non-discharge and Water Supply watershed regulations.
Condition(s) of Certification:
1) 'Appropriate sediment and erosion control practices. which equal or exceed those
outlined in the most recent version of two manuals, either the "North Carolina Sediment
and Erosion Control Planning and Design Manual" or the "North Carolina Surface
Mining Manual" (available from the Division of. Land Resources in the DEIL\TR
Regional or Central Offices). The control practices shall be utilized to prevent
exceedances of the appropriate turbidity water quality standard (50 NTUs in all fresh
water streams and rivers not designated-as trout waters; 25 N-'Us in all lakes and
reservoirs, and all saltwater classes; and. 10 NTUs in trout waters);
2) All sediment and erosion control measures placed in wetlands or waters shall be
removed and the natural grade restored after the Division of Land Resources has
released the project;
3) Measures shall be taken to prevent live or fresh concrete from coming into contact with
waters of the state until the concrete has hardened;
4) Reservoir Level Limitations-The Licensee shall maintain the elevation of the project
reservoir within one foot above and two feet below the reservoir's normal full operating
pool level of 2,895.0 feet Mean Sea Level (MSL) (i.e., in the range of 2,896.0 feet MSL
and 2,893.0 feet MSL) for the period May 1 through October 31 and within one foot
above and seven feet below the reservoir's normal full operating pool level (i.e., in the
range of 2,896.0 feet MSL and 2,888.0 feet MSL) for the winter drawdown period of
November 1 through April 30. In.order to facilitate gradual raising and lowering of the
reservoir during the winter drawdown period, the Licensee shall operate the project so
as to attempt to have the reservoir elevation at 2,891.0 feet MSL on April 1 and
1
December 1. The Licensee shall use the existing float-operated gage on the reservoir to
determine reservoir elevation.
The reservoir elevation limits specified herein may be temporarily modified if
required by operating emergencies beyond the control of the Licensee, during periods
of excessive inflow, for planned drawdowns for maintenance or inspection purposes,
for short periods upon mutual agreement of the Licensee, the North Carolina
Department of Environment and Natural Resources (DENR) and the North Carolina
Wildlife Resources Commission (WRC), and during low inflow periods as specified in
Condition 5 of this Certification.
The licensee shall notify in writing DENR, DWQ-Central Office, Division of
Water Resources (DWR) and the WRC at least 15 days prior to commencing planned
drawdowns for maintenance or inspection purposes that will require a temporary
modification of the reservoir elevation limits. The Licensee shall notify in writing the
DE\R; DWQ-Central Office, DWR and the WRC of any temporary modification of
the reservoir elevation limits required by an operating emergency beyond the control of
the Licensee as soon as practical, either before, during, or immediately following such
emergency, but no later than ten days after each such incident.
5) Minimum Flow In Queens Creek Bypass-The Licensee, except during low inflow
periods as defined herein, shall release from a minimum flow release valve required to
be installed at the base of the project's dam, as calibrated and metered at the valve, a
continuous minimum flow of 2.0 cubic-feet per second (cfs) during the period
December 1 through May 31 and 1.0 cfs during the period June 1 through November 30
for the protection of fishery and other aquatic resources in the reach of Queens Creek
bypassed by the project.
During low inflow periods as defined herein, the Licensee shall follow in
sequential fashion the protocol set forth below regarding adjustments to minimum flow
releases, reservoir elevations, and generation levels and shall make the adjustments set
forth below on a weekly basis so as to equitably allocate the impacts of reduced water
availability:
a. The Licensee shall reduce the normal minimum generation volume by
20% to 29.2 acre-feet per calendar week; .
b. Upon a determination by the Licensee that the reservoir elevation
cannot be maintained within the limits specified for the relevant time
period in Condition 4. of this Certification hereof even with
implementation of the measure specified in a) hereof, the Licensee shall
reduce the continuous minimum flow releases specified above for the
relevant time period by 20% (i.e., down to 1.6 cfs for the period
December 1 through May 31 and 0.8 cfs for the period June 1 through
November 30);
c. Upon a determination by the Licensee that the reservoir elevation
cannot be maintained within the limits specified for the relevant time
period in Condition 4 of this Certification hereof even with
implementation of the measures specified in a) and b) hereof, the
Licensee may reduce the reservoir's elevation one additional foot
below the lower reservoir elevation limit specified for the relevant time
period in Condition 4 of this Certification hereof for the duration of the
low inflow period (herein after the "first modified reservoir level
band„);

4
d. Upon a determination by the Licensee that the reservoir elevation
cannot be maintained within the first modified reservoir level band, the
Licensee shall reduce the minimum generation volume by an additional
15% (down to approximately 23.7 acre-feet per calendar week);
e. Upon a determination by the Licensee that the reservoir elevation
cannot be maintained within the first. modified reservoir level band
even with implementation of the measure specified in d) hereof; the
Licensee shall reduce the continuous minimum flow release specified
herein for the relevant time period by an additional 15% (i.e., down to
1.3 cfs for the period December 1 through May 31 and 0.65 cfs for the
period June 1 through November 30);
f. Upon a determination by the Licensee that the reservoir elevation
cannot be maintained within the first modified reservoir level band
even with implementation of the measures specified in d) and e) hereof,
the Licensee may reduce the reservoir's elevation one additional foot
below the lower limit of the first modified reservoir level band for the
duration of the low inflow period (hereinafter the "second modified
reservoir level band");
g. Upon a determination by the Licensee that the reservoir elevation
cannot be maintained within the second modified reservoir level band,
the protocol preceding establishment of the first and second modified
reservoir level bands as specified above shall be repeated, with the
Licensee first reducing minimum generation volumes in increments of
10%, and subsequently reducing continuous minimum flow releases in
increments of 10%, followed by one foot incremental reductions in. the
lower limit of the second modified reservoir level band, until inflow
has increased to a point where the reservoir level has been restored to
within the reservoir elevation limits for the relevant time period
specified in Condition 4 of this Certification hereof.
For purposes of this Article: the term "normal minimum generation volume" means 36.5
acre-feet of water used per calendar week to generate electricity at the project; the term "low
inflow period" means any period when weekly inflow to the reservoir cannot maintain the
reservoir's elevation above elevation 2,893.0 feet MSL for the period May 1 through October 31
or elevation 2;888.0 feet MSL for the period November 1 through April 30 if the Licensee
provides the continuous minimum flow release for the relevant time period specified herein and
uses the normal minimum generation volume.
Whenever the Licensee at any time during the period May 1 through October 31 reduces the
elevation of the reservoir to below elevation 2,888.0 feet MSL after following the above
specified protocol and not because of planned drawdowns for maintenance or inspection
purposes or operating emergencies beyond the control of Licensee, it shall notify (in writing) the
North Carolina Department of Environmental and Natural Resources , DWQ - Central Office and
DWR and the North Carolina Wildlife Resources Commission (WRC) as soon as possible, but
no later than ten days after each such incident, and shall attend any meeting convened thereafter
to discuss reasonable and desirable options for addressing the low inflow conditions that caused
the reservoir elevation to be reduced below elevation 2,888.0 feet MSL; provided, however, that
no changes in the low inflow protocol provided for herein may be made without the prior
approval of the Federal Energy Regulatory Commission (FERC).
6) Reporting Requirements-No later than March 31 of each calendar year beginning the
first calendar year after the calendar year in which the FERC license is issued, the
Licensee shall provide the North Carolina Department of Environment and Natural
5
Resources, Division of Water Resources and the North Carolina Wildlife Resources
Commission and file with the Federal Energy Regulatory Commission, a report
containing a table of the elevation of the reservoir on a daily basis during the previous.
calendar year, a certification by the Licensee that the minimum flow release
requirements of Condition 5 of this Certification were met during the previous calendar
year and a discussion of each incident during the previous calendar year where the
elevation of the reservoir was above or below the level specified in Condition 4 of this
Certification, together with information sufficient to demonstrate that for each incident
where the elevation of the reservoir was below the levels specified in Condition 4 of
this Certification the requirements of the low inflow protocol of Condition 5 of this
Certification were met.
7) The above-described low inflow protocol and reporting requirements shall be
implemented during the Spring of 2001, but not later than May 31, 2001. NP&L will
install a minimum flow release valve and associated flow meter required to provide and
measure the minimum flow as soon as practicjily achievable following receipt of any
necessary approvals by the FERC under the procedures of the existing license. The
minimum flow release valve will be calibrated to provide the range of minimum flows
under the range of reservoir levels identified in this Certification. Since NP&L cannot
begin construction until any necessary approvals for installation of the minimum flow
release valve and flow meter are received from the FERC, the Division of Water
Quality hereby agrees that failure to implement the subject minimum flows by May 31,
2001 due to delays in receiving any required FERC approvals does not constitute a
default under this Certification. y
8) After five years of operations under the provisions of this Certification, NP&L will
confer with the North Carolina Department of Environment and Natural Resources (DWQ-
Central Office and DWR) and the North Carolina Wildlife Resources Commission to
consider holding an informational meeting, to review the operational history of the
Certification to determine if any operational changes are needed an d agreeable to all the
Parties. Any such meeting shall be scheduled and held no later than September 30 of the
appropriate year.
Violations of any condition herein set forth shall result in revocation of this Certification
and may result in criminal and/or civil penalties. This Certification shall become null and void
finless the above conditions are made conditions of the Federal 404 and/or coastal Area
Management Act Permit. This Certification shall expire upon expiration of the 404 or CAMA
permit.
If this Certification is unacceptable, you have the right to an adjudicatory hearing upon
written request within sixty (60) days following receipt of this Certification. This request must
be in the form of a written petition conforming to Chapter 150B of the North Carolina General
Statutes and filed with the Office of Administrative Hearings, P.O. Box 27447, Raleigh, N.C.
27611-7447. If modifications are made to an original Certification, you have the right to an
adjudicatory hearing on the modifications upon written request within sixty (60) days following
receipt of the Certification. Unless such demands are made, this Certification shall be final and
binding.
This the 30th of November 2000
LITY
DIVISI Fteve
WQC# 3244 (revised)
DWQ Project No.:
County:
Applicant:
Project Name:
Certificate of Completion
6
Upon completion of all work approved within the 401 Water Quality Certification, and any
subsequent modifications, the applicant is required to return this certificate to the 401/Wetlands
Unit, North Carolina Division of Water Quality, 1621 Mail Service Center, Raleigh, NC, 27699-
1621.This form may be returned to DWQ by the applicant, the applicant's authorized agent, or
the project engineer. It is not necessary to send certificates from all of these. y
Applicant's Certification
I, , hereby state that, to the best of my abilities, due
care and diligence was used in the observation of the construction such that the construction was
observed to be built within substantial compliance and intent of the 401 Water Quality.
Certification, the approved plans and specifications, and other supporting materials. -
Signature: Date:
Agent's Certification
I, , hereby state that, to the best of my abilities, due
care and diligence was used in the observation of the construction such that the construction was
observed to be built within substantial compliance and intent of the 401 Water Quality
Certification, the approved plans and specifications, and other supporting materials.
Signature: Date:
If this project was designed by a Certified Professional
I, , as _ a duly registered Professional (i.e.,
Engineer, Landscape Architect, Surveyor, etc.) in the State of North Carolina, having been authorized to
observe (periodicallv, weekly, full time) the construction of the project, for the Permittee hereby state that,
to the best of my abilities, due care and diligence was used in the observation of the construction such that
the construction was observed to be built within substantial compliance and intent of the 401 Water Quality
Certification, the approved plans and specifications, and other supporting materials.
Signature Registration No.
Date

K2 North Carolina Wildlife Resources Commission®
312 N. Salisbury Street, Raleigh, North Carolina 27604-1188, 919-733-3391
Charles R. Fullwood, Executive Director
645 Fish Hatchery Road
Marion, NC 28752-9229 --
October 27, 2000 IN
?i
The Secretary
I n
Federal Energy Regulatory Commission OCT ' 0 2000
888 First Strcct, N.E.
Washington, DC 20426
Subject: RECOMMENDATIONS - New Minor License Application
Nantahala Power and Light
Queens Creek Hydropower Project, FERC No. 2694-002
Dear Secretary:
Submitted are an original and eight copies in response to the August 31, 2000 Federal Energy Regulatory
Commission notice of Application Ready for Environmental Analysis for the referenced project. The North
Carolina Wildlife Resources Commission provides the following comments regarding wildlife and fisheries
resources in accordance with provisions of the Federal Power Act (16 U.S.C. 791a et seq.) and the Fish and
Wildlife Coordination Act (48 Stat. 401, as amended; 16 U.S.C. 661 et seq.).
We signed a settlement agreement (copy enclosed) with Nantahala Power and Light and the N.C. Department of
Environment and Natural Resources that addresses our concerns and issues for this project. We recommend that
the FERC adopt the proposed license articles as written in the settlement agreement.
Thank you for the opportunity to review and comment on this project. If you have any questions concerning these
comments, please contact me at 828-652-4360.
Sincerely,
Christopher Goudreau
Hydropower Relicensing Coordinator
Attachment
c:\mydata\word\hydro\npl\queens\ferc application.doc

QUEENS CREEK PROJECT SETTLEMENT AGREEMENT
STATE OF NORTH CAROLINA
COUNTY OF MECKLENBURG
IN THE OFFICE OF
ADMINISTRATIVE HEARINGS
00 EHR 0043
DUKE ENERGY CORPORATION
Petitioner,
V.
NORTH CAROLINA ENVIRONMENTAL
MANAGEMENT COMMISSION, and its Delegate
The DIVISION OF WATER QUALITY OF THE
DEPARTMENT OF ENVIRONMENT AND
NATURAL RESOURCES,
Respondent
SETTLEMENT AGREEMENT
THIS SETTLEMENT AGREEMENT ("Agreement"), made and entered into as of the
25th day of October, 2000, by and between DUKE ENERGY CORPORATION, a corporation
organized and existing pursuant to the laws of the State of North Carolina, with a place of
business in Mecklenburg County, North Carolina ("Duke"), on behalf of NANTAHALA
POWER & LIGHT ("NP&L"), a division of Duke, the NORTH CAROLINA DEPARTMENT
OF ENVIRONMENT AND NATURAL RESOURCES ("DENR"), and the NORTH
CAROLINA WILDLIFE RESOURCES COMMISSION ("WRC") (collectively "State
Agencies"), (all referenced agencies and Duke collectively "Parties"), provides as follows:
WITNESSETH
WHEREAS, NP&L operates a hydroelectric power project on Queens Creek in Macon
County, NC known as the Queens Creek Project (the "Project") pursuant to a license issued by
the Federal Energy Regulatory Commission ("FERC") (FERC Project No. 2694) and consisting
primarily of:
a) A 37-acre reservoir (the "Reservoir") located approximately 1.5 miles upstream of
Queens Creek's confluence with the Nantahala River; and
b) An earth and rock fill dam (the "Dam") impounding the water in Queens Creek
and including a spill valve; and
1
QUEENS CREEK PROJECT SETTLEMENT AGREEMENT
c) A powerhouse (the "Station") located approximately 3 miles upstream from
Queens Creek's confluence with the Nantahala River and being supplied with
water from the Reservoir by a steel penstock extending from the Dam;
WHEREAS, construction of the Dam and creation of the Reservoir have created reduced
stream flow in the approximately 1.5 - mile long section of Queens Creek between the Dam and
Queens Creek's confluence with the Nantahala River (the "Bypass");
WHEREAS, on September 27, 1999, NP&L filed an application with FERC for renewal
of its license for the Project (the "New License");
WHEREAS, on October 1, 1999, NP&L filed an application with the DENR for Water
Quality Certification pertaining to the New License pursuant to §401 of the Clean Water Act, as
amended;
WHEREAS, on November 16, 1999, the DENR issued Water Quality Certification
Number 3244 (the "401 Certification") for continued operation of the Project under the New
License;
WHEREAS, the 401 Certification contains conditions and limitations on the operation of
the Project that the DENR had determined necessary pursuant to its statutory responsibilities to
support the protection and maintenance of water quality;
WHEREAS, issuance or waiver of 401 Certification is a prerequisite to the issuance of
the New License;
WHEREAS, NP&L's application for the New License includes proposed facilities to
enhance day-use recreational opportunities at the Project's reservoir, including (a) picnic tables,
(b) a fishing pier for disabled users, and (c) a "tote and float" launch area;
WHEREAS, the Parties agree that generating power at the Station, as well as providing
for minimum stream flows in the Bypass and managing the Reservoir's levels for fish habitat
enhancements are all important uses of the limited waters of Queens Creek. Under low inflow
conditions to the Reservoir above the Station, the Modified 401 Certification as identified within
this Agreement provides for expansion of targeted Reservoir level bands, reductions in
generation volumes and reductions in minimum flow releases at the Dam into the Bypass;
WHEREAS, on January 13, 2000, Duke, on behalf of NP&L, filed with the Office of
Administrative Hearings ("OAH") a Petition For A Contested Case Hearing challenging the
limitations and conditions contained in the 401 Certification, with said case assigned OAH Case
Number 00 EHR 0043;
WHEREAS, the State Agencies are interested in environmental impacts by operation of
2
QUEENS CREEK PROJECT SETTLEMENT AGREEMENT
the Project under the New License;
WHEREAS, the Parties have participated in informal discussions to explore potential
settlement of all matters at issue in the 401 Certification and the New License;
WHEREAS, the Parties have now reached full agreement on the resolution of all of the
resource matters at issue in the 401 Certification and the New License, specifically including
reservoir level limitations, public recreational facilities, minimum flow requirements, and
reporting requirements;
WHEREAS, the United States Fish and Wildlife Service of the U.S. Department of the
Interior (the "USFWS") and the United States Forest Service of the U.S. Department of
Agriculture (the "USFS") fully participated in the informal discussions leading to this
Agreement, but the two federal agencies opted not to sign the Agreement. The USFS and
USFWS therefore are not Parties to this Agreement.
NOW, THEREFORE, IN CONSIDERATION of all other actions and undertakings as set
forth hereinbelow, the Parties contract, settle and agree as follows:
Reservoir Level Limitations
1. The Parties agree to the following reservoir level limitations, written in the form
of an Article 401 that the FERC should place in the New License for the Project:
The Licensee shall maintain the elevation of the project reservoir within one foot above
and two feet below the reservoir's normal full operating pool level of 2,895.0 feet Mean Sea
Level (MSL) (i.e., in the range of 2,896.0 feet MSL and 2,893.0 feet MSL) for the period May 1
through October 31 and within one foot above and seven feet below the reservoir's normal full
operating pool level (i.e., in the range of 2,896.0 feet MSL and 2,888.0 feet MSL) for the winter
drawdown period of November 1 through April 30. In order to facilitate gradual raising and
lowering of the reservoir during the winter drawdown period, the Licensee shall operate the
project so as to attempt to have the reservoir elevation at 2,891.0 feet MSL on April 1 and
December 1. The Licensee shall use the existing float-operated gage on the reservoir to
determine reservoir elevation.
The reservoir elevation limits specified herein may be temporarily modified if required by
operating emergencies beyond the control of the Licensee, during periods of excessive inflow,
for planned drawdowns for maintenance or inspection purposes, for short periods Upon mutual
agreement of the Licensee, the North Carolina Department of Environment and Natural
Resources (DENR) and the North Carolina Wildlife Resources Commission (WRC), and during
low inflow periods as specified in License Article 402 hereof [Paragraph 5 of this Agreement].
3
QUEENS CREEK PROJECT SETTLEMENT AGREEMENT
The Licensee shall notify the DENR and the WRC at least 15 days prior to commencing planned
drawdowns for maintenance or inspection purposes that will require a temporary modification of
the reservoir elevation limits. The Licensee shall notify the DENR and the WRC of any
temporary modification of the reservoir elevation limits required by an operating emergency
beyond the control of the Licensee as soon as practical, either before, during, or immediately
following such emergency, but no later than ten days after each such incident.
2. The Parties agree that the foregoing agreements on reservoir level limitations
("Reservoir Level Agreements") will be incorporated into the amendment of application for the
New License that NP&L will file with the FERC as provided in Paragraph 10 hereof, and that the
Reservoir Level Agreements shall be incorporated in the terms of the Modified 401 Certification.
Public Recreation Facility Improvements
3. The Parties agree that the day-use recreational facilities proposed by NP&L in its
September 27, 1999 application for the New License will be consolidated at a single location
within the existing FERC project boundary and thereafter maintained by the WRC. The
construction of the consolidated facilities will be completed in 2001 or as soon as practically
achievable following receipt of any necessary approvals by the FERC under the procedures of
the existing license. The recreational facilities in the FERC application include (a) picnic tables,
(b) disabled-persons fishing pier, and (c) "tote and float" launch area.
4. The Parties agree that the foregoing agreements on Public Recreation Facility
Improvements ("Recreation Facility Agreements") will be incorporated into the amendment of
application for the New License that NP&L will file with the FERC as provided in Paragraph 10
hereof, and that the Recreation Facility Agreements shall not be incorporated in the terms of the
Modified 401 Certification.
Minimum Flow in Queens Creek Bypass
5. The Parties agree to the following minimum flow requirements, written in the
form of an Article 402 that the FERC should place in the New License for the Project:
The Licensee, except during low inflow periods as defined herein, shall release from a
minimum flow release valve required to be installed at the base of the project's dam, as calibrated
and metered at the valve, a continuous minimum flow of 2.0 cubic-feet-per-second (cfs) during
the period December 1 through May 31 and 1.0 cfs during the period June 1 through November
30 for the protection of fishery and other aquatic resources in the reach of Queens Creek
bypassed by the project.
During low inflow periods as defined herein, the Licensee shall follow in sequential
fashion the protocol set forth below regarding adjustments to minimum flow releases, reservoir
4
QUEENS CREEK PROJECT SETTLEMENT AGREEMENT
elevations, and generation levels and shall make the adjustments set forth below on a weekly
basis so as to equitably allocate the impacts of reduced water availability:
a) The Licensee shall reduce the normal minimum generation volume by 20% to 29.2
acre-feet per calendar week;
b) Upon a determination by the Licensee that the reservoir elevation cannot be
maintained within the limits specified for the relevant time period in Article 401
[Paragraph 1 of this Agreement] hereof even with implementation of the measure
specified in a) hereof, the Licensee shall reduce the continuous minimum flow releases
specified above for the relevant time period by 20% (i.e., down to 1.6 cfs for the period
December 1 through May 31 and 0.8 cfs for the period June 1 through November 30);
c) Upon a determination by the Licensee that the reservoir elevation cannot be
maintained within the limits specified for the relevant time period in Article 401
[Paragraph 1 of this Agreement] hereof even with implementation of the measures
specified in a) and b) hereof, the Licensee may reduce the reservoir's elevation one
additional foot below the lower reservoir elevation limit specified for the relevant time
period in Article 401 [Paragraph 1 of this Agreement] hereof for the duration of the low
inflow period (hereinafter the "first modified reservoir level band");
d) Upon a determination by the Licensee that the reservoir elevation cannot be
maintained within the first modified reservoir level band, the Licensee shall reduce the
minimum generation volume by an additional 15% (down to approximately 23.7 acre-feet
per calendar week);
c) Upon a determination by the Licensee that the reservoir elevation cannot be
maintained within the first modified reservoir level band even with implementation of the
measure specified in d) hereof, the Licensee shall reduce the continuous minimum flow
release specified herein for the relevant time period by an additional 15% (i.e., down to
1.3 cfs for the period December 1 through May 31 and 0.65 cfs for the period June 1
through November 30);
f) Upon a determination by the Licensee that the reservoir elevation cannot be
maintained within the first modified reservoir level band even with implementation of the
measures specified in d) and e) hereof, the Licensee may reduce the reservoir's elevation
one additional foot below the lower limit of the first modified reservoir level band for the
duration of the low inflow period (hereinafter the "second modified reservoir level
band");
g) Upon determination by the Licensee that the reservoir elevation cannot be maintained
within the second modified reservoir level band, the protocol preceding establishment of
the first and second modified reservoir level bands as specified above shall be repeated,
with the Licensee first reducing minimum generation volumes in increments of 10% and
subsequently reducing continuous minimum flow releases in increments of 10%,
5
QUEENS CREEK PROJECT SETTLEMENT AGREEMENT
followed by one foot incremental reductions in the lower limit of the second modified
reservoir level band, until inflow has increased to a point where the reservoir level has
been restored to within the reservoir elevation limits for the relevant time period specified
in Article 401 [Paragraph 1 of this Agreement] hereof.
For purposes of this Article: the term "normal minimum generation volume" means 36.5
acre-feet of water used per calendar week to generate electricity at the project; the term "low
inflow period" means any period when weekly inflow to the reservoir cannot maintain the
reservoir's elevation above elevation 2,893.0 feet MSL for the period May 1 through October 31
or elevation 2,888.0 feet MSL for the period November 1 through April 30 if the Licensee
provides the continuous minimum flow release for the relevant time period specified herein and
uses the normal minimum generation volume.
Whenever the Licensee at any time during the period May 1 through October 31 reduces
the elevation of the reservoir to below elevation 2,888.0 feet MSL after following the above-
specified protocol and not because of planned drawdowns for maintenance or inspection
purposes or operating emergencies beyond the control of the Licensee, it shall notify the North
Carolina Department of Environment and Natural Resources (DENR) and the North Carolina
Wildlife Resources Commission (WRC) as soon as possible, but no later than ten days after each
such incident, and shall attend any meeting convened thereafter to discuss reasonable and
desirable options for addressing the low inflow conditions that caused the reservoir elevation to
be reduced below elevation 2,888.0 feet MSL; provided, however, that no changes in the low
inflow protocol provided for herein may be made without the prior approval of the Commission.
Reporting Requirements
6. The Parties agree to the following reporting requirements, written in the form of
an Article 403 that the FERC should place in the New License for the Project:
No later than March 31 of each calendar year beginning the first calendar year after the
calendar year in which this license is issued, the Licensee shall provide to the North Carolina
Department of Environment and Natural Resources and the North Carolina Wildlife Resources
Commission and file with the Commission a report containing a table of the elevation of the
reservoir on a daily basis during the previous calendar year, a certification by the Licensee that
the minimum flow release requirements of Article 402 [Paragraph 5 of this Agreement] were met
during the previous calendar year, and a discussion of each incident during the previous calendar
year where the elevation of the reservoir was above or below the levels specified in Article 401
[Paragraph 1 of this Agreement], together with information sufficient to demonstrate that for
each incident where the elevation of the reservoir was below the levels specified in Article 401
[Paragraph 1 of this Agreement] the requirements of the low inflow protocol of Article 402
[Paragraph 5 of this Agreement] were met.
7. The Partics agree that the above-described low inflow protocol and reporting
requirements shall be implemented during the Spring of 2001, but not later than May 31, 2001.
NP&L will install a minimum flow release valve and associated flow meter required to provide
6
QUEENS CREEK PROJECT SETTLEMENT AGREEMENT
and measure the minimum flow as soon as practically achievable following receipt of any
necessary approvals by the FERC under the procedures of the existing license. The minimum
flow release valve will be calibrated to provide the range of minimum flows under the range of
reservoir levels identified in this Agreement. Since NP&L cannot begin construction until any
necessary approvals for installation of the minimum flow release valve and flow meter are
received from the FERC, the Parties agree that failure to implement the subject minimum flows
by May 31, 2001 due to delays in receiving any required FERC approvals does not constitute a
default under this Agreement.
8. After five years of operations under the provisions of this Agreement, NP&L will
confer with the Parties to consider holding an informational meeting, to review the operational
history of the Agreement to determine if any operational changes are needed and agreeable to all
the Parties. Any such meeting shall be scheduled and held no later than September 30 of the
appropriate year.
9. The Parties agree that the foregoing provisions pertaining to minimum flow
rclcascs, normal minimum generation volume, low inllow protocol and reporting requirements
will be incorporated into the amendment of application for the New License that NP&L will file
with FERC as provided in Paragraph 10 hereof, and shall be incorporated in the terms of the
Modified 401 Certification.
Amendment to FERC Application
10. NP&L shall file with the FERC an amendment to its September 27, 1999
application for the New License for the Project incorporating the agreements described in
Paragraphs 1, 3, 5, and 6 no later than 60 days following issuance by DENR of the final
Modified 401 Certification.
Miscellaneous
11. Within 30 days following the date of the last signature affixed to this Agreement,
DENR will issue a draft Modified 401 Certification with terms as required by the terms of this
Agreement, to be followed by a final Modified 401 Certification within the timelines specified
by the DENR for such issuance.
12. Duke shall file a notice of withdrawal, with prejudice, of its contested case
petition with OAH Case No. 00 EHR 0043. The notice of withdrawal shall be filed in OAH
within 5 days of receipt by NP&L of the final Modified 401 Certification as specified in
Paragraph 11 of this Agreement. Each Party shall bear its own costs and, contingent upon
execution of all the terms of this Agreement, each Party expressly waives any right to collect
attorney fees from any other Party to this Agreement.
13. The State Agencies agree that the terms of this Agreement resolve their concerns
regarding continued operation of the Project under the New License and therefore that they (a)
will support issuance of the New License that is consistent with the terms of this Agreement and
7
QUEENS CREEK PROJECT SETTLEMENT AGREEMENT
(b) will not during the current license renewal proceedings communicate to the FERC or to any
other federal or state resource agency any comments, conditions, recommendations or
prescriptions that are inconsistent with the terms of this Agreement or that if followed or adopted
by the FERC as part of the New License would reduce the economic value of the Project to
NP&L.
14. In the event that the New License does not incorporate, approve, or allow
implementation of the provisions referenced in Paragraphs 1, 3, 5 and 6 hereof, the Parties agree
to promptly confer to determine what, if any, modifications to this Agreement should be made to
address the failure of the New License to incorporate or approve such agreements.
15. This Agreement is a compromise of disputed claims. The actions taken hereunder
are not to be construed as any admission of liability on the part of any settling party, including its
agents, representatives, attorneys or employees, as to all of whom liability is expressly denied.
16. This Agreement contains the entire agreement between the Parties. The terms of
this Agreement are contractual and not mere recitals.
17. This Agreement shall not be modified or amended except by an instrument in
writing signed by all of the Parties or their successors in interest.
18. This Agreement may be executed in separate counterparts, with each counterpart
deemed to be an original having the full force and effect thereof.
8
QUEENS CREEK PROJECT SETTLEMENT AGREEMENT
NANTAHALA POWER & LIGHT, a
Division of DUKE ENERGY
CORPORATION
N.C. DEPARTMENT OF
ENVIRONMENT AND NATURAL
RESOURCES
By: w-
N.E. X ck , Jr.
President
Date: u?p
By:
William . Holman
Secretary
Date: L Z 5 b a
N.C. WILDLIFE RESOURCES
COMMISSION
By: a4wK /!
Charles R. Fullwood
Executive Director
Date: /0, 2-jr- 00
9
CERTIFICATE OF SERVICE
I certify that I served the foregoing document on each person on FERC's official service list for this proceeding and
the following persons by prepaid first class mail.
John Ellis
U.S. Fish & Wildlife Service
P.O. Box 33726
Raleigh, NC 27636-3726
Mr. John Dorney
DENR-DWQ, Wetlands/401Unit
1621 Mail Service Center
Raleigh, NC 27699-1621
6411- 1U d?[r
Christopher . Go eau
Hydropower Relicensing Coordinator
North Carolina Wildlife Resources Commission
645 Fish Hatchery Road
Marion, NC 28752-9229
42 71-16-0
Date
401 = f?u?7ce'C o;m nents
Subject: 401- Duke Comments
Date: Wed, 22 Nov 2000 15:36:36 -0500
From: Fred Tarver <Fred. Tarver @ncmail.net>
To: "goudrecj @wnclink.com" <goudrecj @wnclink.com;? Jim Mead <Jim.Mead @ncmail.net>
[e-mail]
I am forwarding Duke's comments. Good luck! - Fred
Subject: Re: Queens Creek Draft 401
Date: Wed, 22 Nov 2000 15:29:14 -0500
From: [e-mail]
To: Fred Tarver <[e-mail]>
CC: [e-mail] [e-mail], [e-mail],
[e-mail]
Fred, I did a quick review and the document looks pretty good. I think it's
fine to send this out as the draft Modified 401. Comments:
on the 1st page, change "Nantahala Power and Light Company" to
"Nantahala Power and Light, a Division of Duke Energy Corporation". L/
Delete the apostrophe from "Queen's" in the subject line and lead ?
paragraph. Also, the correct date for the Settlement Agreement is 10/26,
since per the agreement, it becomes effective with the date of the last
signature (Ed Tucker signed last on 10/26).
P. 2, Condition 4, last paragraph - 2 places here it appears to require
notification of 3 different entities at DENR. Would really appreciate
having a single point of contact within DENR, rather than having to
ensure 3 different areas get notified. Can't DWR serve as the contact
for DENR? This is also a problem on P. 4, last paragraph of Condition 5
and Condition 8. ?
P. 3, Condition 5 - Subparagraph #'s need to end with parentheses
instead of periods to match way they're referenced.
Blank line needs to be added before Conditions 6, 7 and 8 to make it an
easier read.
P. 5, 1st sentence of last paragraph - Put comma after unacceptable and
delete "to".
Fred Tarver
<Fred.Tarver@n
cmail.net>
11/22/00 02:25
PM
To: [e-mail]
CC:
bcc:
Subject: Queens Creek Draft 401
Jeff,
Sorry, here it is as an attachment.
Fred
(See attached file: 991055-Queens Creeknew.doc)
(See attached file: Fred.Tarver.vcf)
1 of 2 11/25/00 10:31 AM
401 -'15u'ce ?-Ilmments
Name: 991055-Queens Creeknew.doc
Type: Microsoft Word Document (application/msN
t
MIN- 991055?Qucei7s Creekuew---- Encoding: base64
Description: Microsoft Word 4
Download Status: Not downloaded with message
Fred R. Tarver, III <[e-mail]
Environmental Specialist I
Division of Water Resources
N.C. Department of Environment and Natural Resources
2 of 2 11/25/00 10:31 AN
401 comments from Jim Mead
Subject:' 401 comments from Jim Mead
Date: Wed, 22 Nov 2000 14:12:08 -0500
From: Fred Tarver <Fred. Tarver @ ncmail.net>
To: [e-mail]
Subject: Re: Urgent! [Fwd: revised draft of Queen Creek Certification]
Date: Wed, 22 Nov 2000 14:04:04 -0500
From: Jim Mead <[e-mail]>
To: Fred Tarver <Fred. Tarver@ncmail. net>
Fred, 2 comments:
1. page 3, line 5 - should be "metered at the valve" instead of "metered at the value"
2. page 4, line 19 - drop "(DENR)" and put parentheses around "DWQ - Central Office an
DWR"
Fred Tarver wrote:
> Please review and send your comments ASAP to John Dorney via e-mail at:
> [e-mail]
> so that we can get the draft 401 out today. Thanks.
> Please e-mail if you have questions or trouble receiving.
> Fred Tarver
> ------------------------------------------------------------------------
> Subject: revised draft of Queen Creek Certification
> Date: Wed, 22 Nov 2000 12:59:32 -0500
> From: John Dorney <[e-mail]>
> To: [e-mail]
> fred - please see attachment. i have made your suggested changes.
> Please forward to NP&L and get their edits so i can finalize this
> thing! thankx
> ------------------------------------------------------------------------
> Name: 991055-Queens Creek.doc
> 991055-Queens Creek.doc Type: Microsoft Word Document (applicationlmswor
> Encoding: base64
> Download Status: Not downloaded with message
> ------------------------------------------------------------------------
>
> Fred R. Tarver, III <[e-mail]>
> Environmental Specialist I
> Division of Water Resources
> N.C. Department of Environment and Natural Resources
> Fred R. Tarver, III
> Environmental Specialist I <[e-mail]>
> Division of Water Resources
> N.C. Department of Environment and Natural Resources
1 of 2 11/22/00 2:27 PM
401 comments from Jinn Mead
> 1611 Mail Service Center
> ' Raleigh
> NC
> 27699-1611
> USA
> Additional Information:
> Last Name Tarver, III
> First Name Fred
> Version 2.1
.................................................................. ..........................................
...............................................................................................................
Fred R. Tarver, III <[e-mail]
Environmental Specialist I
Division of Water Resources
N.C. Department of Environment and Natural Resources
>.... . _ _ ...<
2of2
Fax: [phone] or -3.555
Work: 919-715-5442
11/22/00 2:27 PM
r
State of North Carolina
Department of Environment
and Natural Resources
Division of Water Quality
James B. Hunt, Jr., Governor
Bill Holman, Secretary
Kerr T. Stevens, Director
Mr. John Wilson (Wilhon)
Nantahala Relicensing Project Manager
Natahala Power & Light
301 NP&L Loop Road
Franklin, NC 28734
Dear Mr. Wilson (Wilhon):
IT 1 11kT?W,J •
NC ENR
NORTH CAROLINA DEPARTMENT OF
ENVIRONMENT AND NATURAL RESOURCES
November 16, 2000
DRAFT
Re: Certification Pursuant to Section 401 of the Federal Clean Water Act,
Proposed Queen's Creek Hydroelectric Plant-FERC License Renewal
WQC Project # 991055 FERC# 2694
Macon County
Attached hereto is a copy of Certification No.3244 (revised) issued to the Nantahala Power
& Light dated November 14, 2000.
If we can be of further assistance, do not hesitate to contact us.
Attachments
Sincerely,
Kerr T. Stevens
cc: Asheville DWQ Regional Office
File Copy
Central Files
Fred Tarver; FERC NC Division of Water Resources
Division of Water Quality • Wetlands/401 Unit
1621 Mail Service Center • Raleigh NC 27669-1621 • Telephone [phone] • FAX # [phone]
An Equal Opportunity Affirmative Action Employer
50% recycled/10% post consumer paper
2
NORTH CAROLINA 401 WATER QUALITY CERTIFICATION
THIS CERTIFICATION is issued in conformity with the requirements of Section 401
Public Laws 92-500 and 95-217 of the United States and subject to the North Carolina Division
of Water Quality (DWQ) Regulations in 15 NCAC 2H, Section .0500. It is issued to Na.tahal.a
Power and Light Company in Macon County pursuant to an application filed on the 1ST day of
October, 1999 to relicense the Queen's Creek hydroelectric project and a Settlement Agreement
dated October 25, 2000 (received November 6, 2000).
The application provides adequate assurance that the discharge of fill material into the
waters of Queens Creek in conjunction with the proposed development will not result in a
violation of applicable Water Quality Standards and discharge guidelines. Therefore, the State
of North Carolina certifies that this activity will not violate the applicable portions of Sections
301, 302, 303, 306, 307 of PL 92-500 and PL 95-217 if conducted in accordance with the
application and conditions hereinafter set forth.
This approval is only valid for the purpose and design that you submitted in your
application, as described in the Public Notice. If you change your project, you must notify us
and send us a new application for a new certification. If the property is sold, the new owner must
be given a copy of the Certification and approval letter and is thereby responsible for complying
with all conditions. If total wetland fills for this project (now or in the future) exceed one acre
or total perennial stream impact exceeds 150 feet, compensatory mitigation may be required as
described in 15A NCAC 2H .0506 (h) (6) and (7). For this approval to be valid, you must follow
the conditions listed below. In addition, you should get any other federal, state or local permits
before you go ahead with your project including (but not limited to) Sediment and Erosion
control, Coastal Stormwater, Non-discharge and Water Supply watershed regulations.
Condition(s) of Certification:
Appropriate sediment and erosion control practices which equal or exceed those
outlined in the most recent version of two manuals, either the "North Carolina Sediment
and Erosion Control Planning and Design Manual" or the "North Carolina Surface
Mining Manual" (available from the Division of Land Resources in the DEH.NR
Regional or Central Offices). The control practices shall be utilized to prevent
exceedances of the appropriate turbidity water quality standard (50 NTUs in all fresh
water streams and rivers not designated as trout waters; 25 NTUs in all lakes and
reservoirs, and all saltwater classes; and 10 NTUs in trout waters);
2. All sediment and erosion control measures placed in wetlands or waters shall be
removed and the natural grade restored after the Division of Land Resources has
released the project;
3. Measures shall be taken to prevent live or fresh concrete from coming into contact with
waters of the state until the concrete has hardened;
4. Reservoir Level Limitations-The Licensee shall maintain the elevation of the project
reservoir within one feet-foot above and two feet below the reservoir's normal €i-full
operating pool level of 2,895.0 feet Mean Sea Level (MSL) (i.e., in the range of 2,896.0
feet MSL and 2,893.0 feet MSL) for the period May 1 through October 31 and within
one feet-foot above and seven feet below the reservoir's normal full operating pool level
(i.e., in the range of 2,896.0 feet MSL and 2,888.0 feet MSL) for the winter drawdown
period of November 1 through April 30. In order to facilitate gradual raising and
lowering of the reservoir during the winter drawdown period, the Licensee shall operate
the project so as to attempt to have the reservoir elevation at 2,891.0 feet MSL on April
3
I and December 1. The Licensee shall use the existing float-operated gage' on the
reservoir to determine reservoir elevation.
The reservoir elevation limits specified herein may be temporarily modified if
required by operating emergencies beyond the control of the Licensee, during periods
of excessive inflow, for planned drawdowns for maintenance or inspection purposes,
for short periods upon mutual agreement of the Licensee, the North Carolina
Department of Environmental and Natural Resources (DENR) and the North Carolina
Wildlife Resources Commission (WRC), and during low inflow periods as specified in
Condition 5 of this Certification.
The licensee shall notify in writing DENR, DWQ-Central Office, Division of
Water Resources (DWR) and the WRC at least 15 days prior to commencing planned
drawdowns for maintenance or inspection purposes that will require a temporary
modification of the reservoir elevation limits. The Licensee shall notify in writing the
DENR, DWQ-Central Offices aid-DWR and the WRC of any temporary modification
of the reservoir elevation limits required by an operating emergency beyond the control
of the Licensee as soon as practical, either before, during, or immediately following
such emergency, but no later tht-,than ten days after each such incident.
Minimum Flow In Queens Creek Bypass-The Licensee, except during low inflow
periods as defined herein, shall release from a minimum flow release.valve required to
be installed at the base of the project's dam, as calibrated and metered at the value, a
continuous minimum flow of 2.0 cubic-feet per second (cfs) during the period
December 1 through May 31 and 1.0 cfs during the period June 1 through November 30
for the protection of fishery and other aquatic resources in the reach of Queens Creek
bypassed by the project.
During low inflow periods as defined herein, the Licensee shall follow in
sequential fashion the protocol set forth below regarding adjustments to minimum flow
releases, reservoir elevations, and generation levels and shall make the adjustments set
forth below on a weekly basis so as to equitably allocate the impacts of reduced water
availability:
a. The Licensee shall reduce the normal minimum generation volume by
20% to 29.2 acre-feet per calendar week;
b. Upon a determination by the Licensee that the reservoir elevation
cannot be maintained within the limits specified for the relevant time
period in Condition 4 of this Certification hereof even with
implementation of the measure specified in a) hereof, the Licensee shall
reduce the continuous minimum flow releases specified above for the
relevant time period by 20% (i.e., down to 1.6 cfs for the period
December 1 through May 31 and 0.8 cfs for the period June 1 through
November 3.30);
c. Upon a determination by the Licensee that the reservoir elevation
cannot be maintained within the limits specified for the relevant time
period in Condition 4 of this Certification hereof even with
implementation of the measures specified in a) and b) hereof, the
Licensee may reduce the reservoir's evolutionrelevation one additional
foot below the lower reservoir elevation limit specified for the relevant
time period in Condition 4 of this Certification hereof for the duration
of the low inflow period (herein after the "first modified reservoir level
band");
4
d. Upon a determination by the Licensee that the reservoir elevation
cannot be maintained within the first modified reservoir level band, the
Licensee shall reduce the minimum generation volume by an additional
15% (down to approximately 23.7 acre-feet per calendar week);
e. Upon a determination by the Licensee that the reservoir elevation
cannot be maintained within the first modified reservoir level band
even with implementation of the measure specified in d) hereof, the
Licensee shall reduce the continuous minimum flow release specified
herein for the relevant time period by an additional 15% (i.e., down to
1.3 cfs for the period December 1 through May 31 and 0.65 cfs for the
period June 1 through November 30);
f. Upon a determination by the Licensee that the reservoir elevation
cannot be maintained within the first modified reservoir level band
even with implementation of the measures specified in d) and e) hereof,
the Licensee may reduce the reservoir's elevation one additional foot
below the lower limit of the first modified reservoir level band for the
duration of the low inflow period (hereinafter the "second modified
reservoir level band");
g. Upon a determination by the Licensee that the reservoir elevation
cannot be maintained within the second modified reservoir level band,
the protocol preceding establishment of the first and second modified
reservoir level bands as specified above shall be repeated, with the
Licensee first reducing minimum generation volumes in increments of
10%, and subsequently reducing continuous minimum flow releases in
increments of 10%, followed by one foot incremental reductions in the
lower limit of the second modified reservoir level band, until inflow
has increased to a point where the reservoir level has been restored to
within the reservoir elevation limits for the relevant time period
specified in Condition 4 of this Certification hereof.
(Check margins and indentation for next 2 para rag hphs)For purposes of this Article: the
term "normal minimum generation volume" means 36.5 acre-feet of water used per calendar
week to generate electricity at the project; the term "low inflow period" means any period when
weekly inflow to the reservoir cannot maintain the reservoir's elevation above elevation 2,893.0
feet MSL for the period May 1 through October 31 or elevation 2,888.0 feet MSL for the period
November 1 through April 30 if the Licensee provides the continuous minimum flow release for
the relevant time period specified herein and uses the normal minimum generation volume.
Whenever the Licensee at any time during the period May 1 through October 31 reduces the
elevation of the reservoir to below elevation 2,888.0 feet MSL after following the above
specified protocol and not because of planned drawdowns for maintenance or inspection
purposes or operating emergencies beyond the control of Licensee, it shall notify (in writing) the
North Carolina Department of Environmental and Natural Resources (DENR) DWQ - Central
Office and DWR and the North Carolina Wildlife Resources Commission (WRC) as soon as
possible, but no later than ten days after each such incident, and shall attend any meeting
emceed convened thereafter to discuss reasonable and desirable options for addressing the low
inflow conditions that caused the reservoir elevation to be reduced below elevation 2,888.0 feet
MSL; provided, however, that no changes in the low inflow protocol provided for herein may be
made without the prior approval of the Federal Energy Regulatory Commission_(URC).
6. Reporting Requirements-No later than March 31 of each calendar year beginning the
first calendar year after the calendar year in which the FERC license is issued, the
Licensee shall provide the (you changed font size from 11 to 12) North Carolina
5
Department of Environmental and Natural Resources, Division of Water
Resources and the North Carolina Wildlife Resources Commission and file with
the Federal Energy Re ug latory Commission, a report containing a table of the
elevation of the reservoir on a daily basis during the previous calendar year, a
certification by the Licensee that the minimum flow release requirements of
Condition 5 of this Certification were met during the previous calendar year, and
a discussion of each incident during the previous calendar year where the
elevation of the reservoir was above or below the level specified in Condition 4
of this Certification, together with information sufficient to demonstrate that for
each incident where the elevation of the reservoir was below the levels specified
in Condition 4 of this Certification the requirements of the low inflow protocol of
Condition 5 of this Certification were met.
7. (again, check margins) The Pafties agree that the above-described low inflow
protocol and reporting requirements shall be implemented during the Spring of 2001, but
not later than May 31, 2001. NP&L will install a minimum flow inerease-release valve
and associated flow meter required to provide and measure the minimum flow as soon as
practically achievable following receipt of any necessary approvals by the FERC under
the procedures of the existing license. The minimum flow release valve will be calibrated
to provide the range of minimum flows under the range of reservoir levels identified in
this Certification. Since NP&L eati no cannot begin construction until any necessary
approvals for installation of the minimum flow release valve and flow meter are received
from the FERC, the Division of Water Quality hereby agrees that failure to implement the
subject minimum flows by May 31, 2001 due to delays in receiving any required FERC
approvals does not constitute a default under this Agreetnen Certification.
8. After five years of operations under the provisions of this
Agreetten Certification, NP&L will confer with the lies North Carolina Department
of Environment and Natural Resources (DWQ - Central Office and DWR) and the North
Carolina Wildlife Resources Commission to consider holding an informational meeting,
to review the operational history of the Certification to determine if any operational
changes are needed and agreeable to all the Parties. Any such meeting shall be scheduled
and held no later than September 3C of the appropriate year.
Violations of any condition herein set forth shall result in revocation of this
Certification and may result in criminal and/or civil penalties. This Certification shall
become null and void unless the above conditions are made conditions of the Federal 404
and/or coastal Area Management . Act Permit. This Certification shall expire upon
expiration of the 404 or CAMA permit.
If this Certification is unacceptable to you have the right to an adjudicatory hearing upon
written request within sixty (60) days following receipt of this Certification. This request must
be in. the form of a written petition conforming to Chapter 150B of the North Carolina General
Statutes and filed with the Office of Administrative Hearings, P.O. Box 27447, Raleigh, N.C.
27611-7447. If modifications are made to an original Certification, you have the right to an
adjudicatory hearing on the modifications upon written request within sixty (60) days following
receipt of the Certification. Unless such demands are made, this Certification shall be final and
binding.
This the 16 day of November 2000
DIVISION OF WATER QUALITY
6
Kerr T. Stevens
WQC# 3244 (revised)
DWQ Project No.:
Applicant:
Project Name:
Date of Issuance of 401 Water Quality Certification:
Certificate of Completion
County:
Upon completion of all work approved within the 401 Water Quality Certification, and any subsequent
modifications, the applicant is required to return this certificate to the 401/Wetlands Unit, North Carolina
Division of Water Quality, 1621 Mail Service Center, Raleigh, NC, 27699-1621.This form may be returned
to DWQ by the applicant, the applicant's authorized agent, or the project engineer. It is not necessary to
send certificates from all of these.
Applicant's Certification
I, , hereby state that, to the best of my abilities, due care and
diligence was used in the observation of the construction such that the construction was observed to be built
within substantial compliance and intent of the 401 Water Quality Certification, the approved plans and
specifications, and other supporting materials.
Signature: Date:
Agent's Certification
I, , hereby state that, to the best of my abilities, due care and
diligence was used in the observation of the construction such that the construction was observed to be built
within substantial compliance and intent of the 401 Water Quality Certification, the approved plans and
specifications, and other supporting materials.
Signature: Date:
If this project was designed by a Certified Professional
I, , as a duly registered Professional (i.e.,
Engineer, Landscape Architect, Surveyor, ect.) in the State of North Carolina, having been authorized to
observe (periodically, weekly, full time) the construction of the project, for the Permittee hereby state that,
to the best of my abilities, due care and diligence was used in the observation of the construction such that
the construction was observed to be built within substantial compliance and intent of the 401 Water Quality
Certification, the approved plans and specifications, and other supporting materials.
Signature Registration No.
Date
State of North Carolina
Department of Environment
and Natural Resources
Division of Water Quality
James B. Hunt, Jr., Governor
Bill Holman, Secretary
Kerr T. Stevens, Director
Mr. John Wilson
Nantahala Relicensing Project Manager
Natahala Power & Light
301 NP&L Loop Road
Franklin, NC 28734
Dear Mr. Wilson:
609MR?
1
•
T
NCDENR
NORTH CAROLINA DEPARTMENT OF
ENVIRONMENT AND NATURAL RESOURCES
November 16, 2000
DRAFT
Re: Certification Pursuant to Section 401 of the Federal Clean Water Act,
Proposed Queen's Creek Hydroelectric Plant-FERC License Renewal
WQC Project # 991055 FERC# 2694
Macon County
Attached hereto is a copy of Certification No.3244 (revised) issued to the Nantahala Power
& Light dated November 14, 2000.
If we can be of further assistance, do not hesitate to contact us.
Sincerely,
Attachments
Kerr T. Stevens
cc: Asheville DWQ Regional Office
File Copy
Central Files
Fred Tarver; FERC NC Division of Water Resources
Division of Water Quality • Wetlands/401 Unit
1621 Mail Service Center • Raleigh NC 27669-1621 • Telephone [phone] • FAX # [phone]
An Equal Opportunity Affirmative Action Employer
50% recycled/10% post consumer paper
2
NORTH CAROLINA 401 WATER QUALITY CERTIFICATION
THIS CERTIFICATION is issued in conformity with the requirements of Section 401
Public Laws 92-500 and 95-217 of the United States and subject to the North Carolina Division
of Water Quality (DWQ) Regulations in 15 NCAC 2H, Section .0500. It is issued to Natahala
Power and Light Company in Macon County pursuant to an application filed on the 1ST day of
October, 1999 to relicense the Queen's Creek hydroelectric project and a Settlement Agreement
dated October 25, 2000 (received November 6, 2000).
The application provides adequate assurance that the discharge of fill material into the
waters of Queens Creek in conjunction with the proposed development will not result in a
violation of applicable Water Quality Standards and discharge guidelines. Therefore, the State
of North Carolina certifies that this activity will not violate the applicable portions of Sections
301, 302, 303, 306, 307 of PL 92-500 and PL 95-217 if conducted in accordance with the
application and conditions hereinafter set forth.
This approval is only valid for the purpose and design that you submitted in your
application, as described in the Public Notice. If you change your project, you must notify us
and send us a new application for a new certification. If the property is sold, the new owner must
be given a copy of the Certification and approval letter and is thereby responsible for complying
with all conditions. If total wetland fills for this project (now or in the future) exceed one acre
or total perennial stream impact exceeds 150 feet, compensatory mitigation may be required as
described in 15A NCAC 2H .0506 (h) (6) and (7). For this approval to be valid, you must follow
the conditions listed below. In addition, you should get any other federal, state or local permits
before you go ahead with your project including (but not limited to) Sediment and Erosion
control, Coastal Stormwater, Non-discharge and Water Supply watershed regulations.
Condition(s) of Certification:
1. Appropriate sediment and erosion control practices which equal or exceed those
outlined in the most recent version of two manuals, either the "North Carolina Sediment
and Erosion Control Planning and Design Manual" or the "North Carolina Surface
Mining Manual" (available from the Division of Land Resources in the DEHNR
Regional or Central Offices). The control practices shall be utilized to prevent
exceedances of the appropriate turbidity water quality standard (50 NTUs in all fresh
water streams and rivers not designated as trout waters; 25 NTUs in all lakes and
reservoirs, and all saltwater classes; and 10 NTUs in trout waters);
2. All sediment and erosion control measures placed in wetlands or waters shall be
removed and the natural grade restored after the Division of Land Resources has
released the project;
3. Measures shall be taken to prevent live or fresh concrete from coming into contact with
waters of the state until the concrete has hardened;
4. Reservoir Level Limitations-The Licensee shall maintain the elevation of the project
reservoir within one feet above and two feet below the reservoir's normal fill operating
pool level of 2,895.0 feet Mean Sea Level (MSL) (i.e., in the range of 2,896.0 feet MSL
and 2,893.0 feet MSL) for the period May 1 through October 31 and within one feet
above and seven feet below the reservoir's normal full operating pool level (i.e., in the
range of 2,896.0 feet MSL and 2,888.0 feet MSL) for the winter drawdown period of
November 1 through April 30. In order to facilitate gradual raising and lowering of the
reservoir during the winter drawdown period, the Licensee shall operate the project so
as to attempt to have the reservoir elevation at 2,891 feet MSL on April 1 and
3
December 1. The Licensee shall use the existing float-operated gage on the reservoir to
determine reservoir elevation.
The reservoir elevation limits specified herein may be temporarily modified if
required by operating emergencies beyond the control of the Licensee, during periods
of excessive inflow, for planned drawdowns for maintenance or inspection purposes,
for short periods upon mutual agreement of the Licensee, the North Carolina
Department of Environmental and Natural Resources (DENR) and the North Carolina
Wildlife Resources Commission (WRC), and during low inflow periods as in Condition
5 of this Certification.
The licensee shall notify in writing DENR, DWQ-Central Office, Division of
Water Resources (DWR) and the WRC at least 15 days prior to commencing planned
drawdowns for maintenance or inspection purposes that will require a temporary
modification of the reservoir elevation limits. The Licensee shall notify in writing the
DENR, DWQ-Central Office and DWR and the WRC of any temporary modification of
the reservoir elevation limits required by a operating emergency beyond the control of
the Licensee as soon as practical, either before, during, or immediately following such
emergency, but no later the ten days after each such incident.
5. Minimum Flow In Queens Creek Bypass-The Licensee, except during low inflow
periods as defined herein, shall release from a minimum flow release valve required to
be installed at the base of the project's dam, as calibrated and metered at the value, a
continuous minimum flow of 2.0 cubic-feet per second (cfs) during the period
December 1 through May 31 and 1.0 cfs during the period June 1 through November 30
for the protection of fishery and other aquatic resources in the reach of Queens Creek
bypassed by the project.
During low inflow periods as defined herein, the Licensee shall follow in
sequential fashion the protocol set forth below regarding adjustments to minimum flow
releases, reservoir elevations, and generation levels and shall make the adjustments set
forth below on a weekly basis so as to equitably allocate the impacts of reduced water
availability:
a. The Licensee shall reduce the normal minimum generation volume by
20% to 29.2 acre-feet per calendar week;
b. Upon a determination by the Licensee that the reservoir elevation
cannot be maintained within the limits specified for the relevant time
period in Condition 4 of this Certification hereof even with
implementation of the measure specified in a) hereof, the Licensee shall
reduce the continuous minimum flow releases specified above for the
relevant time period by 20% (i.e., down to 1.6 cfs for the period
December 1 through May 31 and 0.8 cfs for the period June 1 through
November 31);
c. Upon a determination by the Licensee that the reservoir elevation
cannot be maintained within the limits specified for the relevant time
period in Condition 4 of this Certification hereof even with
implementation of the measures specified in a) and b) hereof, the
Licensee may reduce the reservoir evolution one additional foot below
the lower reservoir elevation limit specified for the relevant time period
in Condition 4 of this Certification hereof for the duration of the low
inflow period (herein after the "first modified reservoir level band");
d. Upon a determination by the Licensee that the reservoir elevation
cannot be maintained within the first modified reservoir level band, the
4
Licensee shall reduce the minimum generation volume by an additional
15% (down to approximately 23.7 acre-feet per calendar week);
e. Upon a determination by the Licensee that the reservoir elevation
cannot be maintained within the first modified reservoir level band
even with implementation of the measure specified in d) hereof, the
Licensee shall reduce the continuous minimum flow release specified
herein for the relevant time period by an additional 15% (i.e., down to
1.3 cfs for the period December 1 through May 31 and 0.65 cfs for the
period June 1 through November 30);
f. Upon a determination by the Licensee that the reservoir elevation
cannot be maintained within the first modified reservoir level band
even with implementation of the measures specified in d) and e) hereof,
the Licensee may reduce the reservoir's elevation one additional foot
below the lower limit of the first modified reservoir level band for the
duration of the low inflow period (hereinafter the "second modified
reservoir level band");
g. Upon a determination by the Licensee that the reservoir elevation
cannot be maintained within the second modified reservoir level band,
the protocol preceding establishment of the first and second modified
reservoir level bands as specified above shall be repeated, with the
Licensee first reducing minimum generation volumes in increments of
10%, and subsequently reducing continuous minimum flow releases in
increments of 10%, followed by one foot incremental reductions in the
lower limit of the second modified reservoir level band, until inflow
has increased to a point where the reservoir level has been restored to
within the reservoir elevation limits for the relevant time period
specified in Condition 4 of this Certification hereof.
For purposes of this Article: the term "normal minimum generation volume" means 36.5
acre-feet of water used per calendar week to generate electricity at the project; the term "low
inflow period" means any period when weekly inflow to the reservoir cannot maintain the
reservoir's elevation above elevation 2,893.0 feet MSL for the period May 1 through October 31
or elevation 2,888.0 feet MSL for the period November 1 through April 30 if the Licensee
provides the continuous minimum flow release for the relevant time period specified herein and
uses the normal minimum generation volume.
Whenever the Licensee at any time during the period May 1 through October 31 reduces the
elevation of the reservoir to below elevation 2,888.0 feet MSL after following the above
specified protocol and not because of planned drawdowns for maintenance or inspection
purposes or operating emergencies beyond the control of Licensee, it shall notify (in writing) the
North Carolina Department of Environmental and Natural Resources (DENR) DWQ - Central
Office and DWR and the North Carolina Wildlife Resources Commission (WRC) as soon as
possible, but no later than ten days after each such incident, and shall attend any meeting
convinced thereafter to discuss reasonable and desirable options for addressing the low inflow
conditions that caused the reservoir elevation to be reduced below elevation 2,888.0 feet MSL;
provided, however, that no changes in the low inflow protocol provided for herein may be made
without the prior approval of the Commission.
6. Reporting Requirements-No later than March 31 of each calendar year beginning the
first calendar year after the calendar year in which the license is issued, the Licensee
shall provide the North Carolina Department of Environmental and Natural
Resources, Division of Water Resources and the North Carolina Wildlife
5
Resources Commission and file with the Commission, a report containing a table
of the elevation of the reservoir on a daily basis during the previous calendar
year, a certification by the Licensee that the minimum flow release requirements
of Condition 5 of this Certification were met during the previous calendar year
where the elevation of the reservoir was above or below the level specified in
Condition 4 of this Certification, together with information sufficient to
demonstrate that for each incident where the elevation of the reservoir was below
the levels specified in Condition 4 of this Certification the requirements of the
low inflow protocol of Condition 5 of this Certification were met.
The Parties agree that the above-described low inflow protocol and reporting
requirements shall be implemented during the Spring of 2001, but not later than May 31,
2001. NP&L will install a minimum flow increase valve and associated flow meter
required to provide and measure the minimum flow as soon as practically achievable
following receipt of any necessary approvals by the FERC under the procedures of the
existing license. The minimum flow release valve will be calibrated to provide the range
of minimum flows under the range of reservoir levels identified in this Certification.
Since NP&L can not begin construction until any necessary approvals for installation of
the minimum flow release valve and flow meter are received from the FERC, the
Division of Water Quality hereby agrees that failure to implement the subject minimum
flows by May 31, 2001 due to delays in receiving any required FERC approvals does not
constitute a default under this Agreement.
After five years of operations under the provisions of this Agreement, NP&L will
confer with the Parties to consider holding an informational meeting, to review the
operational history of the Certification to determine if any operational changes are needed
and agreeable to all the Parties. Any such meeting shall be scheduled and held no later
than September 30 H of the appropriate year.
Violations of any condition herein set forth shall result in revocation of this
Certification and may result in criminal and/or civil penalties. This Certification shall
become null and void unless the above conditions are made conditions of the Federal 404
and/or coastal Area Management Act Permit. This Certification shall expire upon
expiration of the 404 or CAMA permit.
If this Certification is unacceptable to you have the right to an adjudicatory hearing upon
written request within sixty (60) days following receipt of this Certification. This request must
be in the form of a written petition conforming to Chapter 150B of the North Carolina General
Statutes and filed with the Office of Administrative Hearings, P.O. Box 27447, Raleigh, N.C.
276 1 1-7447. If modifications are made to an original Certification, you have the right to an
adjudicatory hearing on the modifications upon written request within sixty (60) days following
receipt of the Certification. Unless such demands are made, this Certification shall be final and
binding.
This the 16 day of November 2000
DIVISION OF WATER QUALITY
Kerr T. Stevens
6
WQC# 3244 (revised)
DWQ Project No.:
Applicant:
Project Name:
Date of Issuance of 401 Water Quality Certification:
Certificate of Completion
County:
Upon completion of all work approved within the 401 Water Quality Certification, and any subsequent
modifications, the applicant is required to return this certificate to the 401/Wetlands Unit, North Carolina
Division of Water Quality, 1621 Mail Service Center, Raleigh, NC, 27699-1621.This form may be returned
to DWQ by the applicant, the applicant's authorized agent, or the project engineer. It is not necessary to
send certificates from all of these.
Applicant's Certification
I, , hereby state that, to the best of my abilities, due care and
diligence was used in the observation of the construction such that the construction was observed to be built
within substantial compliance and intent of the 401 Water Quality Certification, the approved plans and
specifications, and other supporting materials.
Signature: Date:
Agent's Certification
I, , hereby state that, to the best of my abilities, due care and
diligence was used in the observation of the construction such that the construction was observed to be built
within substantial compliance and intent of the 401 Water Quality Certification, the approved plans and
specifications, and other supporting materials.
Signature: Date:
If this project was designed by a Certified Professional
I, , as a duly registered Professional (i.e.,
Engineer, Landscape Architect, Surveyor, ect.) in the State of North Carolina, having been authorized to
observe (periodically, weekly, full time) the construction of the project, for the Permittee hereby state that,
to the best of my abilities, due care and diligence was used in the observation of the construction such that
the construction was observed to be built within substantial compliance and intent of the 401 Water Quality
Certification, the approved plans and specifications, and other supporting materials.
Signature Registration No.
Date
sue'
State of North Carolina
Department of Environment
and Natural Resources •
Division of Water Quality
James B. Hunt, Jr., Governor NCDENR
Bill Holman, Secretary NORTH CAROLINA DEPARTMENT OF
Kerr T. Stevens, Director ENVIRONMENT AND NATURAL RESOURCES
PrW4", w ka VJ'Vr L_N?-
11"Jor A C?
?t?c? ?? G n??'13 ,,,c p P laJ -
Dea rpp C ?FC
Re: Certification Pur ant to Section 401 of the Federal Clean Water Act,
Proposed
W C Project # 9 0 Fzi2C -4-- a6,71
QC&` County
Attached hereto is a copy of Certification No. ?ja"' -l issued to the dated
?? Qy49-.,`___1_q_, 2000.
If we can be of further assistance, do not hesitate to contact us.
Sincerely,
Kerr T. Stevens
Q-?
U
Attachments
/. t r llict r f"r? ?f
. 1 llllll?i Cvi TISI In0
CC
DWQ Regional Office
File Copy
b , t
Central Files
S R4e U
Division of Water Quality • Non-Discharge Branch .
1621 Mail Service Center Raleigh NC 27669-1621 Telephone [phone] FAX # [phone]
An Equal Opportunity Affirmative Action Employer • 50% recycled/10% post consumer paper

P
,a
?i
NORTH CAROLINA 401 WATER QUALITY CERTIFICATION
THIS CERTIFICATION is issued in conformity with the requirements of S
Public Laws 92-500 and 95-217 of the United States and subject to the North Caro
of Water Quality (DWQ) Regulations in 15 NCAC 2H, Section .0500. It is issued
o?
ion 401
t Division 2?1 12071
}-react in n 'r?'t?
County pursuant to an a%*-e'an's ation filed on the ?day of d dblt?.. 24980 oa
IV rely r? ` 6 QAk cQ ,el dyjcr^e--- M1
The applic tion provides adequate assurance that the discharge of fill material into the
waters of Creek in conjunction with the proposed development will not result
in a violation of applicable Water Quality Standards and discharge guidelines. Therefore, the
State of North Carolina certifies that this activity will not violate the applicable portions of
Sections 301, 302, 303, 306, 307 of PL 92-500 and PL 95-217 if conducted in accordance with
the application and conditions hereinafter set forth.
This approval is only valid for the purpose and design that you submitted in your
application, as described in the Public Notice. If you change your project, you must notify us
and send us a new application for a new certification. If the property is sold, the new owner must
be given a copy of the Certification and approval letter and is thereby responsible for complying
with all conditions. If total wetland fills for this project (now or in the future) exceed one acre
or total perennial stream impact exceeds 150 feet, compensatory mitigation may be required as
described in 15A NCAC 2H .0506 (h) (6) and (7). For this approval to be valid, you must follow
the conditions listed below. In addition, you should get any other federal, state or local permits
before you go ahead with your project including (but not limited to) Sediment and Erosion
control, Coastal Stormwater, Non-discharge and Water Supply watershed regulations.
Condition(s) of Certification:
Appropriate sediment and erosion control practices which equal or exceed those
outlined in the most recent version of two manuals, either the "North Carolina Sediment
and Erosion Control Planning and Design Manual" or the "North Carolina Surface
Mining Manual" (available from the Division of Land Resources in the DEHNR
Regional or Central Offices). The control practices shall be utilized to prevent
exceedances of the appropriate turbidity water quality standard (50 NTUs in all fresh
water streams and rivers not designated as trout waters; 25 NTUs in all lakes and
reservoirs, and all saltwater classes; and 10 NTUs in trout waters);
2. All sediment and erosion control measures placed in wetlands or waters shall be
removed and the natural grade restored after the Division of Land Resources has
released the project;
3. Measures shall be taken to prevent live or fresh concrete from coming into contact with
waters of the state until the concrete has hardened;
/T4_ Should waste or borrow sites be located in wetlands or other waters, compensatory
mitigation will be required since it is a direct impact from road construction activities;
Compensatory mitigation shall be done.
C
6Y-,
N6O
(a) zvva ,
,iwwwl
QUEENS CREEK PROJECT SETTLEMENT AGREEMENT
the Project under the New License;
WHEREAS, the Parties have participated in informal discussions to explore potential
settlement of all matters at issue in the 401 Certification and the New License;
WHEREAS, the Parties have now reached full agreement on the resolution of all of the
resource matters at issue in the 401 Certification and the New License, specifically including
reservoir level limitations, public recreational facilities, minimum flow requirements, and
reporting requirements;
WHEREAS, the United States Fish and Wildlife Service of the U.S. Department of the
Interior (the "USFWS") and the United States Forest Service of the U.S. Department of
Agriculture (the "US>~S") fully participated in the informal discussions leading to this
Agreement, but the two federal agencies opted not to sign the Agreement. The USFS and
USFWS therefore are not Parties to this Agreement.
NOW, THEREFORE, N CONSIDERATION of all other actions and undertakings as set
forth hereinbelow, the Parties contract, settle and agree as follows:
servos ns
51*N el at t??C rshodl??a?c the i6IeGLicenthe projel'C.r"
The Licensee shall maintain the elevation of the project reservoir within one foot above
and two feet below the reservoir's normal full operating pool level of 2,895.0 feet Mean Sea
Level (MSL) i.e., in the range of 2,896.0 feet MSL and 2,893.0 feet MSL) for the period May 1
through October 31 and within one foot above and seven feet below the reservoir's normal full
operating pool level i.e., in the range of 2,896.0 feet MSL and 2,888.0 feet MSL) for the winter
drawdown period of November 1 through April 30. In order to facilitate gradual raising and
lowering of the reservoir during the winter drawdown period, the Licensee shall operate the
project so as to attempt to have the reservoir elevation at 2,891.0 feet MSL on April I and
December 1. The Licensee shall use the existing float-operated gage on the reservoir to
determine reservoir elevation.
The reservoir elevation limits specified herein may be temporarily modified if required by
operating emergencies beyond the control of the Licensee, during periods of excessive inflow,
for planned drawdowns for maintenance or inspection purposes, for short periods upon mutual
agreement of the Licensee, the North Carolina Department of Environment and Natural
Resources (DENR and the North Carolina Wildlife Resources Commission (WRC), and during
low inflow periods specified in License Article 402 hereof (Paragraph 5 of this Agreement].

QUEENS CREEK PROJEC SE LEMENT AGREEMENT
ior to coCencing planned
s pr
The Licensee shall notify` 1e DENR;and the Cat least 15 /d,
drawdowns for maintenance or inspection purposes that will ire a tempgrary modification of
the reservoir elevation limits. The Licensee shall notify the DENR) and the WRC of any
temporary modification of the reservoir elevation limits required by an operating emergency
beyond the control of the Licensee as soon as practical, either before, during, or immediately
following such emergency, but no later than ten days after each such incident.
2. that t he - re ing agra Its on re oir level limitations
it will tz?co rated ' o th ;;7igrh ent of appli on r the
se wit he PER as ovided 1 ap0 h of, and a the
La incorporated in the terms of the Modified 401 Cer
tification.
.
Public Recreation Facility Improvements
3. The Parties agree that the day-use recreations cilities proposed by NP&L in its
Septe er 27, 1999 application for the ZLe be consolidated at a single location
within existing FERC project boufter maintained by the WRC. The
construction f the consolidated facilitieed in 2001 or as soon as practically
achievable fol ving receipt of any necey the FERC under the procedures of
the existing license. Th e recreational faci application include (a) picnic tables,
(b) disabled-persons f! ' g pier, and "tote and float" launch area.
4. The Parties agre that the foregoing agreements on Public Recreation Facility
Improvements ("Recreation acili greements") will be incorporated into the amendment of
application for the New ' ense that N L 711
file with the FERC as provided in Paragraph 10
s shall not be incorporated in the terms'of the
hereof, and that the creation Facility Ag ment
Modified 401 Certification,
rJ , The Licensee, except during low inflow periods as defined herein, shall release from a
minimum flow release valve required to be installed at the base of the project's dam, as calibrated
and metered at the valve, a continuous minimum flow of 2.0 cubic-feet-per-second (cfs) during
the period December 1 through May 31 and 1.0 cfs during the period June 1 through November
30 for the protection of fishery and other aquatic resources in the reach of Queens Creek
bypassed by the project.
During low inflow periods as defined herein, the Licensee shall follow in sequential
fashion the protocol set forth below regarding adjustments to minimum flow releases, reservoir
4
QUEENS CREEK PROJECT SETTLEMENT AGREEMEN'T'
elevations, and generation levels and shall make the adjustments set forth below on a weekly
basis so as to equitably allocate the impacts of reduced water availability:
a) The Licensee shall reduce the normal minimum generation volume by 20% to 29.2
acre-feet per calendar week;
b) Upon a determination by the Licensee that the reservoir elevation cannot be
maintained within the limits specified for the relevant time period in Article 401
[Paragraph 1 of this Agreement] hereof even with implementation of the measure
specified in a) hereof, the Licensee shall reduce the continuous minimum flow releases
specified above for the relevant time period by 20% (i.e., down to 1.6 efs for the period
December 1 through May 31 and 0.8 cfs for the period June 1 through November 30);
c) Upon a determination by the Licensee. that the reservoir elevation cannot be
maintained within the limits specified for the relevant time period in Article 401
[Paragraph 1 of this Agreement] hereof even with implementation of the measures
specified in a) and b) hereof, the Licensee may reduce the reservoir's elevation one
additional foot below the lower reservoir elevation limit specified for the relevant time
period in Article 401 (Paragraph I of this Agreement) hereof for the duration of the low
inflow period (hereinafter the "first modified reservoir level band");
d) Upon a determination by the Licensee that the reservoir elevation cannot be
maintained within the first modified reservoir level band, the Licensee shall reduce the
minimum generation volume by an additional 15% (down to approximately 23.7 acre-feet
per calendar week);
e) Upon a determination by the Licensee that the reservoir elevatibn cannot be
maintained within the first modified reservoir level band even with implementation of the
measure specified in d) hereof, the Licensee shall reduce the continuous minimum flow
release specified herein for the relevant time period by an additional 15% (i.e., down to
1.3 cfs for the period December 1 through May 31 and 0.65 cfs for the period June 1
through November 30); _
f) Upon a determination by the Licensee that the reservoir elevation cannot be
maintained within the first modified reservoir level band even with implementation of the
measures specified in d) and e) hereof, the Licensee may reduce the reservoir's elevation
one additional foot below the lower limit of the first modified reservoir level band for the
duration of the low inflow period (hereinafter the "second modified reservoir level
band");
g) Upon determination by the Licensee that the reservoir elevation cannot be maintained
within the second modified reservoir level band, the protocol preceding establishment of
the first and second modified reservoir level bands as specified above shall be repeated,
with the Licensee first reducing minimum generation volumes in iaicrGiiiuatti of 10% and
subsequently reducing continuous minimum flow releases in increments of 10%,
5
F•
k QUEENS CREEK PROJECT SETTLEMENT AGREEMENT
followed by one foot incremental reductions in the lower limit of the second modified
reservoir level band, until inflow has increased to a point where the reservoir level has
been restored to within the reservoir elevation limits for the relevant time period specified
in Article 401 [Paragraph 1 of this Agreement] hereof
For purposes of this Article; the term "normal minimum generation volume" means 36,5
acre-feet of water used per calendar week to generate electricity at the project; the term "low
inflow period" means any period when weekly inflow to the reservoir cannot maintain the
reservoir's elevation above elevation 2,893.0 feet MSL for the period May 1 through October 31
or elevation 2,888.0 feet MSL for the period November 1 through April 30 if the Licensee
provides the continuous minimum flow release for the relevant time period specified herein and
uses the normal minimum generation volume.
Whenever the Licensee at any time during the period May 1 through October 31 educes
the elevation of the reservoir to below elevation 2,888.0 feet MSL after following above-
specified protocol and not because of planned drawdowns for maintenance or ' spection
purposes or operating emergencies beyond the control of the Licensee, it shall notify-the North
Carolina Department of Environment and Natural Resources (DENR) and the North Carolina
Wildlife Resources Commission (WRC) as soon as possible, but no late than ten days after each
such incident, and shall attend any meeting convened thereafter to iscuss reasonable and
desirable options for addressing the low inflow conditions that caused the reservoir elevation to
be reduced below elevation 2,888.0 feet MSL; provided, however, that no changes in the love
inflow protocol provided for herein may be made without the prior appro al of the Commission.
Re
-N
Partid agredo the low4 reportiyrltequipdhents,,,,writt!;Rin term of
anc a tat t R t uld a e Ne i ns o th r?j< `?
0 1 ter than Mar31 of each calendar year beginning the first calendar year after the
calendar year in which this license is issued, the Licensee shall provide to the North Carolina
Department of Environment and Natural Resourcesf and the North Carolina Wildlife Resources
Commission and file with the Commission a report containing a table of the elevation of the
reservoir on a daily basis during the previous caleIr year, a certification by the Licensee that
the minimum flow release requirements of Article 4 2 [Paragraph 5 of this Agreement] were met
during the previous calendar year, and a discussio of each incident during the previous calendar
year where the elevation of the reservoir was abo a or below the levels specified in Article 401
[Paragraph 1 of this Agreement], together with nformation sufficient to demonstrate that for
each incident where the elevation of the reservoir was below the levels specified in Article 401
[Paragraph 1 of this Agreement] the requirements of the low inflow protocol of Article 402
[Paragraph 5 of this Agreement] were met.
Of, The Parties agree that the ab eve-described low inflow protocol and reporting
requirements shall be implemented during th Spring of 2001, but not later than May 31, 2001,
NP&L will install a minimum flow release v lve and associated :flow meter required to provide
S
T y,e-' QUEENS CREEK PROJECT SETTLEMENT AGREEMENT
and measure the minimutti flow as soon as practically achievable following receipt of any
necessary approvals by the FERC under the procedures of the existing license. The minimum
flow release valve will be calibrated to provide the range of minimum flows under the range of
reservoir levels identified in this Agreement. Since NP&L cannot begin construction until any
necessary approvals for installation of the minimum flow release valve and flow meter are
received from the FERC, the Parties agree that failure to implement the subject minimum flows
by May 31, 2001 due to delays in receiving any required FERC approvals does not constitute a.
default under this Agreement.
After five years of operations under the provisions of this Agreement, NP&L will
confer with the Parties to consider holding an informational meeting, to review the operational
history of the Agreement to determine if any operational changes are needed and agreeable to all
the parties. Any such meeting shall be scheduled and held no later than September 30 of the
appropriate year.
9. a Parties agree that the foregoin rovisions pertaining to minimum flow
rel ases, n al minimum ene ation volum , ow 'nflow protoc reporting require is
wi 1 be i orpo ed into , e anie drae. a1 pIieati n for the ew Lice se that NP will le
wi h F C as p ovid in Para aph hereof, an sha a incorpora d in t terms of the
Mo ified 401 Ce i ation.
d
10. I?iP shall file Ai the FERC an amendment to its September 27, 1999
application for the Ne ice or the Project incorporating the agreements described in
Paragraphs 1, 3, 5, an d 6 r than 60 days following issuance by DENR of the final
Modified 401 Certificatio ?
Miscellaneous
11. Wi in 30 days following the date of the las ignature affixed to this Agreement,
DENR will issue a ft Modified 401 Certification -witl terms as required by the terms of this
Agreement, to be follo MI, by a final Modified 401`C (cation within the timelines specified
by the DENR for such ce.
12. Duke shall file a ctice of
petition with OAH Case No. 00 ET 0
N 043.
within 5 days of receipt by NP&L o he
Paragraph 11 of this Agreement. Each P
execution of all the terms of this Agreez ni
attorney fees from any other Party to this Am
13. The State Agencies
regarding continued operation of t
will support issuance of the New I
?drawal, with prejudice, of its contested case
'he notice of withdrawal shall be filed in OAK
tal Modified 401 Certification as specified in
shall bear its own costs and, contingent upon
;?h Party expressly waives any right to collect
that the terms o his Agreement resolve their concerns
ject }under the Ne icense and therefore that they (a)
that is consistent with the terms of this Agreement and
7
6. Deed notifications or similar mechanisms shall be placed on all remaining
jurisdictional wetlands and waters or areas within 50 feet of all streams and
ponds to notify the state in order to assure compliance for future wetland and/or
water impact. These mechanisms shall be put in place within 30 days of the date
of this letter or the issuance of the 404 Permit (whichever is later).
Violations of any condition herein set forth shall result in revocation of this Certification
and may result in criminal and/or civil penalties. This Certification shall become null and void
unless the above conditions are made conditions of the Federal 404 and/or coastal Area
Management Act Permit. This Certification shall expire upon expiration of the 404 or CAMA
permit.
If this Certification is unacceptable to you have the right to an adjudicatory hearing upon
written request within sixty (60) days following receipt of this Certification. This request must
be in the form of a written petition conforming to Chapter 150B of the North Carolina General
Statutes and filed with the Office of Administrative Hearings, P.O. Box 27447, Raleigh, N.C.
27611-7447. If modifications are made to an original Certification, you have the right to an
adjudicatory hearing on the modifications upon written request within sixty (60) days following
receipt of the Certification. Unless such demands are made, this Certification shall be final and
binding. t ????J'__'"
This the 4day of 2000
DIVISION OF WATER QUALITY
Kerr T. Stevens
WQc # tJ?-! 1 wld?`^1

NANTAHALA
POWER AND LIGHT
ar :.
November 1, 2000
Mr. John Dorney
NC Dept. of Environment and Natural Resources
4401 Reedy Creek Rd
Raleigh, NC 27607
6M
tt t`??? J?V.?
i
RE: The Settlement Agreement for the Queens Creek Hydroelectric Project (FERC
Project No. 2694-NC)
Dear Mr. Dorney:
Please find enclosed a copy of the Queens Creek Project Settlement Agreement entered
on October 25, 2000 by and between Duke Energy Corporation on behalf of Nantahala
Power and Light (NP&L), the North Carolina Department of Environment and Natural
Resources, and the North Carolina Wildlife Resources Commission.
NP&L will file an amendment to its September 27, 1999 Queens Creek license renewal
application as agreed upon in the Queens Creek Settlement Agreement.
If there are any questions, please contact me at [phone].
Sincerely,

John C. Wishon
Nantahala Relicensing Project Manager
cc: See attached list

Mr. Bill Anderson Ms. Sally Browning
NC DWQ USDA Forest Service
59 Woodfin Place 90 Sloan Road
Asheville, NC 28801 Franklin, NC 28734
Mr. Mark Cantrell Mr. Dannie Childers
US Fish and Wildlife Service Eastern Band of Cherokee Indians
160 Zillicoa St. P.O. Box 455
Asheville, NC 28801 Cherokee, NC 28719
Mr. John Dorney Mr. John Ellis
NC Dept. of Environment and Natural Resources US Fish and Wildlife Service
4401 Reedy Creek Rd P.O. Box 33726
Raleigh, NC 27607 Raleigh, NC 27636-3726
Ms. Renee Gledhill-Earley Mr. Christopher Goudreau Hydropower
NC Dept. of Cultural Resources Relicensing Coordinator
109 East Jones Street NC Wildlife Resources Commission
Raleigh, NC 27601-2807 645 Fish Hatchery Road
Marion, NC 28752-9229
Mr. Clay Griffith Ms. Nam Guthrie Senior Field Officer
NC SHPO DEHNR
1 Village Lane, Suite 3 59 Woodfin Place
Asheville, NC 28801 Asheville, NC 28801
Mr. John Hefner Dr. Donley Hill
U.S. Fish and Wildlife Service U.S. Dept. of Agriculture Forest Service
P.O. Box 33726 160 Zillicoa Street
Raleigh, NC 27636-3726 Asheville, NC 28802
Mr. Chris Hoberg Mr. Bob Johnson
U.S. Environmental Protection Agency - Region 4 U.S. Army Corps of Engineers
61 Forsyth St., SW Atlanta Federal Center - 13th 151 Patton Avenue Room 143
Floor Asheville, NC 28801-5006
Atlanta, GA 30303
f*
Mr. Steve Kartalia
FERC
HL 11.1 888 1st St. NE
Washington, DC 20426
Mr. Jim Mead
DENR
1611 Mail Service Center
Raleigh, NC 27699-1611
Ms. Malka Pattison
US Dept. of Interior, BIA
1849 C Street, NW Mail Stop 4513 - MIB
Washington, DC 20240
Ms. Gloria Putnam
Division of Water Quality
1617 Mail Service Center
Raleigh, NC 27699-1617
Ms. Mary Roundtree Hydropower Compliance
National Park Service
100 Alabama Street, SW
Atlanta, GA 30303
Ms. Amy Wales
Tennessee Valley Authority
1101 Market Street CST 17D
Chattanooga, TN 37402
Mr. Scott Loftis
NC Wildlife Resources Commission
20830 Great Smoky Mtn. Exp.
Waynesville, NC 28786
Mr. David Moore
NC SHPO
1 Village Lane Suite 3
Asheville, NC 28803-2677
Ms. Martha Peterson
Office of Rep. Charles H. Tayler
22 South Pack Square Suite 330
Asheville, NC 28801
Mr. Steven Reed
NC Dept. of Environment and Natural Resources
1611 Mail Service Center
Raleigh, NC 27611
Mr. Dwayne Stuztman
NC Division of Parks & Recreation
59 Woodfin Place
Asheville, NC 28801
Mr. J. Curtis Weaver
USGS WRD
3916 Sunset Ridge Road
Raleigh, NC 27607
QUEENS CREEK PROJECT SETTLEMENT AGREEMENT
STATE OF NORTH CAROLINA
COUNTY OF MECKLENBURG
IN THE OFFICE OF
ADMINISTRATIVE HEARINGS
00 EHR 0043
DUKE ENERGY CORPORATION
Petitioner,
V.
NORTH CAROLINA ENVIRONMENTAL
MANAGEMENT COMMISSION, and its Delegate
The DIVISION OF WATER QUALITY OF THE
DEPARTMENT OF ENVIRONMENT AND
NATURAL RESOURCES,
Respondent
SETTLEMENT AGREEMENT
THIS SETTLEMENT AGREEMENT ("Agreement"), made and entered into as of the
25th day of October, 2000, by and between DUKE ENERGY CORPORATION, a corporation
organized and existing pursuant to the laws of the State of North Carolina, with a place of
business in Mecklenburg County, North Carolina ("Duke"), on behalf of NANTAFIAL,A
POWER & LIGHT ("NP&L"), a division of Duke, the NORTH CAROLINA DEPARTMENT
OF ENVIRONMENT AND NATURAL RESOURCES ("DENR"), and the NORTH
CAROLINA WILDLIFE RESOURCES COMMISSION ("WRC") (collectively "State
Agencies"), (all referenced agencies and DLA e collectively "Parties"), provides as follows;
WITNESSETH
WHEREAS, NP&L operates a hydroelectric power project on Queens Cheek in Macon
County, NC known as the Queens Creek Project (the "Project") pursuant to a license issued by
the Federal Energy Regulatory Commission ("FERC") (FERC Project No. 2694) and consisting
primarily of
a) A 37-acre reservoir (the "Reservoir'") located approximately 1.5 miles upstream of
Queens Creek's confluence with the Nantahala River; and
b) An earth and rock fill dam (tbi?e "Dam") impounding the water in Queens Creek
and including a spill valve; and
QUEENS CREEK PROJECT SETTLEMENT AGREEMENT
c) A powerhouse (the "Station") located approximately 3 miles upstream front
Queens Creek's confluence with the Nantahala River and being supplied with
water from the Reservoir by a steel penstock extending from the Dana;
WHEREAS, construction of the Dam and creation of the Reservoir have created reduced
stream flow in the approximately 1.5 - mile long section of Queens Creek between the Dam and
Queens Creek's confluence with the Nantahala River (the "Bypass");
WHEREAS, on September 27, 1999, NP&L filed an application with FERC for renewal
of its license for the Project (the "New License");
WHEREAS, on October 1, 1999, NP&L filed an application with the DE NR for Water
Quality Certification pertaining to the New License pursuant to §401 of the Clean Water Act, as
amended;
WHEREAS, on November 16, 1999, the DENR issued Water Quality Certification
Number 3244 (the "401 Certification") for continued operation of the Project under the New
License;
WHEREAS, the 401 Certification contains conditions and limitations on the operation of
the Project that the DENR had determined necessary pursuant to its statutory responsibilities to
support the protection and maintenance of water quality;
WHEREAS, issuance or waiver of 401 Certification is a prerequisite to the issuance of
the New License;
WHEREAS, NP&L's application for the New License includes proposed facilities to
enhance day-use recreational opportunities at the Project's reservoir, including (a) picnic tables,
(b) a fishing pier for disabled users, and (c) a "tote and float" launch area;
WHEREAS, the Parties agree that generating power at the Station, as well as providing
for minimum stream flows in the Bypass and managing the Reservoir's levels for fish habitat
enhancements are all important uses of the limited waters of Queens Creek. Under low inflow
conditions to the Reservoir above the Station, the Modified 401 Certification as identified within
this Agreement provides for expansion of targeted Reservoir level bands, reductions in
generation volumes and reductions in minimum flow releases at the Dam into the Bypass;
WHEREAS, on January 13, 2000, Duke, on behalf of. NP&L, filed with the Office of
Administrative Hearings ("OAH'') a Petition For A Contested Case Hearing challenging the
limitations and conditions contained in the 401 Certification, with said case assigned OAH Case
Number 00 EHR 0043;
WHEREAS, the State Agencies are interested in environmental impacts by operation of
2
QUEENS CREEK PROJECT SETTLEMENT AGREEMENT
the Project under the New License;
WHEREAS, the Parties have participated in informal discussions to explore potential
settlement of all matters at issue in the 401 Certification and the New License;
WHEREAS, the Parties have now reached full agreement on the resolution of all of the
resource matters at issue in the 401 Certification and the New License, specifically including
reservoir level limitations, public recreational facilities, minimum flow requirements, and
reporting requirements;
WHEREAS, the United States Fish and Wildlife Service of the U.S. Department of the
Interior (the "USFWS") and the United States Forest Service of the U.S. Department of
Agriculture (the "US>~S") fully participated in the informal discussions leading to this
Agreement, but the two federal agencies opted not to sign the Agreement. The USFS and
USIw WS therefore are not Parties to this Agreement.
NOW, THEREFORE, IN CONSIDERATION of all other actions and undertakings as set
forth hereinbelow, the Parkes contract, settle and agree as follows:
Reservoir Level Limitations
1. The Parties agree to the following reservoir level limitations, written in the form
of an Article 401 that the FERC should place in the New License for the Project:
The Licensee shall maintain the elevation of the project reservoir within one foot above
and two feet below the reservoir's normal full operating pool level of 2,895.0 feet Mean Sea
Level (MSL) (i.e., in the range of 2,896.0 feet MSL and 2,893.0 feet MSL) for the period May 1
through October 31 and within one foot above and seven feet below the reservoir's normal full
operating pool level i.e., in the range of 2,896.0 feet MSL, and 2,888.0 feet MSL) for the winter
drawdown period of November 1 through April 30. In order to facilitate gradual raising and
lowering of the reservoir during the winter drawdown period, the Licensee shall operate the
project so as to attempt to have the reservoir elevation at 2,891,0 feet MSL on April 1 and
December 1. The Licensee shall use the existing float-operated gage on the. reservoir to
determine reservoir elevation.
The reservoir elevation limits specified herein may be temporarily modified if required by
operating emergencies beyond the control of the Licensee, during periods of excessive inflow,
for planned drawdowns for maintenance or inspection purposes, for short periods upon mutual
agreement of the Licensee, the North Carolina Department of Environment and Natural
Resources (DENR) and the North Carolina VJt ildlife Resources Commission (WRC), and during;
low inflow periods s specified in License Article 402 hereof (Paragraph 5 of this Agreement].
3
6k
QUEENS CREEK PROJEC SE?LEMENT AGREEMENT
The Licensee shall notify` he DENRkand the Cat least 15 d ys prior tjp encing planned
drawdowns for maintenance or inspection purposes that will r quire a temary modification of
the reservoir elevation limits. The Licensee shall notify the DENR) and the WRC of any
temporary modification of the reservoir elevation limits required by an operating emergency
beyond the control of the Licensee as soon as practical, either before, during, or immediately
following such emergency, but no later than ten days after each such incident.
2. The Parties agree that the foregoing agreements on reservoir level limitations
("Reservoir Level Agreements") will be incorporated into the amendment of application for the
New License that NP&L will file with the Fri.RC as provided in Paragraph 10 hereof, and that the
Reservoir Level Agreements shall be incorporated in the terms of the Modified 401 Certification.
Public Recreation Facility improvements
3. The Parties agree that the day-use recreational facilities proposed by NP&L in its
September 27, 1999 application for the New License will be consolidated at a single location
within the existing FERC project boundary and thereafter maintained by the 1irRC. The
construction of the consolidated facilities will be completed in 2001 or as soon as practically
achievable following receipt of any necessary approvals by the FERC under the procedures of
the existing license. The recreational facilities in the FERC application include (a) picnic tables,
(b) disabled-persons fishing pier, and (c) "tote and float" launch area.
4. The Parties agree that the foregoing agreements on Public Recreation Facility
Improvements ("Recreation Facility Agreements") will be incorporated into the amendment of
application for the New License that NP&L will file with the FERC as provided in Paragraph 10
hereof, and that the Recreation Facility Agreements shall not be incorporated in the terms'of the
Modified 401 Certification.
Minimum Flow in Queens Creek &Xpass
5. The Parties agree to the following minimum flow requirements, written in the
form of an Article 402 that the FERC should place in the New License for the Project:
The Licensee, except during low inflow periods as defined herein, shall release from a
mininnum flow release valve required to be installed at the base of the project's dam, as calibrated
and metered at the valve, a continuous minimum flow of 2.0 cubic-feet-per-second (cfs) during
the period December 1 through May 31 and 1.0 cfs during the period June I through November
30 for the protection of fishery and other aquatic resources in the reach of Queens Creek
bypassed by the project.
During low inflow periods as defined herein, the Licensee shall follow in sequential
fashion the protocol set forth below regarding adjustments to minimum flow releases, reservoir
4
QUEENS CREEK PROJECT SETTLEMENT AGREEMENT
elevations, and generation levels and shall make the adjustments set forth below on a weekly
basis so as to equitably allocate the impacts of reduced water availability:
a) The Licensee shall reduce the normal minimrun generation volume by 20% to 29.2
acre-feet per calendar week;
b) Upon a determination by the Licensee that the reservoir elevation cannot be
maintained within the limits specified for the relevant time period in Article 401
[Paragraph 1 of this Agreement] hereof even with implementation of the measure
specified in a) hereof, the Licensee shall reduce the continuous minimum flow releases
specified above for the relevant time period by 20% (i.e., down to 1.6 cfs for the period
December 1 through May 31 and 0.8 cfs for the period June 1 through November 30);
c) Upon a determination by the Licensee, that the reservoir elevation cannot be
maintained within the limits specified for the relevant time period is Article 401
[Paragraph 1 of this Agreement] hereof even with implementation of the measures
specified in a) and b) hereof, the Licensee may reduce the reservoir's elevation one
additional foot below the lower reservoir elevation limit specified for the relevant time
period in Article 401 [Paragraph 1 of this Agreement] hereof for the duration of the low
inflow period (hereinafter the "first modified reservoir level band");
d) Upon a determination by the Licensee that the reservoir elevation cannot be
maintained within the first modified reservoir level band, the Licensee shall reduce the
minimum generation volume by an additional 15% (down to approximately 23.7 acre-feet
per calendar week);
e) Upon a determination by the Licensee that the reservoir elevatibn canfiot be
maintained within the first modified reservoir level band even with implementation of the
measure specified in d) hereof, the Licensee shall reduce the continuous minimum flow
release specified herein for the relevant time period by an additional 15% (i.e., down to
1.3 cfs for the period December 1 through May 31 and 0.65 cfs for the period June 1
through November 30);
f) Upon a determination by the Licensee that the reservoir elevation cannot be
maintained within the first modified reservoir level band even with, implementation of the
measures specified in d) and e) hereof, the Licensee may reduce the reservoir's elevation
one additional foot below the lower limit of the first modified reservoir level band for the
duration of the low inflow period (hereinafter the "second modified reservoir level
band");
g) Upon determination by the Licensee that the reservoir elevation cannot be maintained
within the second modified reservoir level band, the protocol preceding establishment of
the first and second modified reservoir level bands as specified above shall be repeated,
with the Licensee trot reducing ininiipum generation volumes in iiwsr i cnb of 10% and
subsequently reducing continuous minimum flow releases in increments of 10%,
5
QUEENS CREEK PROJECT SETTLEMENT AGREEMENT
followed by one foot incremental reductions in the lower limit of the second modified
reservoir level band, until inflow has increased to a point where the reservoir level has
been restored to within the reservoir elevation limits for the relevant time period specified
in Article 401 [Paragraph I of this Agreement] hereof.
For purposes of this Article; the term "normal minimum generation volume" means 36,5
acre-feet of water used per calendar week to generate electricity at the project; the term "low
inflow period" means any period when weekly inflow to the reservoir cannot maintain the
reservoir's elevation above elevation 2,893.0 feet MSL for the period May 1 through October 31
or elevation 2,888.0 feet MSL for the period November 1 through April 30 if the Licensee
provides the continuous minimum flow release for the relevant time period specified herein and
uses the normal minimum generation volume. (ice w-t'A? vl?
Whenever the Licensee at any time during the period May 1 through October 31 educes
the elevation of the reservoir to below elevation 2,888.0 feet MSL after following tl above-
specified protocol and not because of planned drawdowns for maintenance or ' spection
purposes or operating emergencies beyond the control of the Licensee, it shall notify the North
Carolina Department of Environment and Natural Resources (DENR) and the North Carolina
Wildlife Resources Commission (WRC) as soon as possible, but no late than ten days after each
such incident, and shall attend any meeting convened thereafter to iscuss reasonable and
desirable options for addressing the low inflow conditions that caused t e reservoir elevation to
be reduced below elevation 2,888.0 feet MSL; provided, however, that no changes in the low
inflow protocol provided for herein may be made without the prior appro al of the Commission.
Reporting Requirements \? U? 40?1
Vy
6. The parties agree to the following reporting requirements, written in the form of
an Article 403 that the FERC should place in the New License for the Project;
No later than March, 31 of each calendar year beginning the first calendar year after the
calendar year in which this license is issued, the Licensee shall provide to the North Carolina
Department of Environment and Natural Resources and the North Carolina Wildlife Resources
Commission and file with the Commission a repo containing a table of the elevation of the
reservoir on a daily basis during the previous Galen ar year, a certification by the Licensee that
the minimum flow release requirements of Article 4 2 [Paragraph 5 of this Agreement] were met
during the previous calendar year, and a diseussio of each incident during the previous calendar
year where the elevation of the reservoir was abo a or below the levels specified in Article 401
(Paragraph 1 of this Agreement], together with nformation sufficient to demonstrate that for
each incident where the elevation of the reservoi was below the levels specified in Article 401
[Paragraph 1 of this Agreement] the requirem nts of the low inflow protocol of Article 402
[Paragraph 5 of this Agreement] were met.
7. The Parties agree that the ab e-described low inflow protocol and reporting
requirements shall be implemented during th Spring of 2001, but not later than May 31, 2001,
NP&L will install a minimurn flow release v lve and associated flow meter required to provide
S
QUEENS CREEK PROJECT SETTLEMENT AGREEMENT
and measure the rninimum flow as soon as practically achievable following receipt of any
necessary approvals by the FERC under the procedures of the existing license. The minimum
flow release valve will be calibrated to provide the range of minimum flows under the range of
reservoir levels identified in this Agreement. Since NP&L cannot begin construction until any
necessary approvals for installation of the minimum flow release valve and flow ineter are
received from the FERC, the Parties agree that failure to implement the subject minimum flows
by May 31, 2001 due to delays in receiving any required FERC approvals does not constitute a
default under this Agreement.
8. After five years of operations under the provisions of this Agreement, NP&L will
confer with the Parties to consider holding an informational meeting, to review the operational
history of the Agreement to determine if any operational changes are needed and agreeable to all
the Parties. Any such meeting shall be scheduled and held no later than September 30 of the
appropriate year.
9. The Parties agree that the foregoing provisions pertaining to minimum flow
releases, normal minimum generation volume, low inflow protocol and reporting requirements
will be incorporated into the amendment of application for the New License that NP&L will file
with FERC as provided in Paragraph 10 hereof, mid shall be incorporated in the terms of the
Modified 401 Certification.
Amendment to FERC Application
10, NP&L shall file with the FERC an amendment to its September 27, 1999
application for the New License for the Project incorporating the agreements described in
Paragraphs 1, 3, 5, and 6 no later than 60 days following issuance by DENR of the final
Modified 401 Certification. P
Miscellaneous
11. Within 30 days following the date of the last signature affixed to this Agreement,
DENR will issue a draft Modified 401 Certification with terms as required by the terms of this
Agreement, to be followed by a final Modified 401 Certification within the timelines specified
by the DENR for such issuance.
12. Duke shall file a notice of withdrawal, with prejudice, of its contested case
petition with OAH Case No. 00 EHR 0043. The notice of withdrawal shall be filed in OAF T
within 5 days of receipt by NP&L of the final Modified 401 Certification as specified in
Paragraph 11 of this Agreement. Each Party shall bear its own costs and, contingent upon
execution of all the terms of this Agreement, each Party expressly waives any right to collect
attorney fees froze any other Party to this Agreement.
13, The State Agencies agree that the terms of this Agreement resolve their concerns
regarding continued operation of the Project under the New License and therefore that they (a)
will support issuance of the New License that is consistent with the terms of this Agreement and
7
QUEENS CREEK PROJECT SETTLEMENT AGREtMENT
(b) will not during the cuixent license renewal proceedings communicate to the FERC or to any
other federal or state resource agency any comments, conditions, recommendations or
prescriptions that are inconsistent with the terms of this Agreement or that if followed or adopted
by the FERC as part of the New License would reduce the economic value of the Project to
NP&L.
14. In the event that the New License does not incorporate, approve, or allow
implementation of the provisions referenced in Paragraphs 1, 3, 5 and 6 hereof, the Parties agree
to promptly confer to determine what, if any, modifications to this Agreement should be made to
address the failure of the New License to incorporate or approve such agreements.
15. This Agreement is a compromise of disputed claims. The actions taken hereunder
are not to be construed as any admission of liability on the part of any settling party, including its
agents, representatives, attorneys or employees, as to all of whom liability is expressly denied.
16. This Agreement contains the entire agreement between the Parties. The terms of
this Agreement are contractual and not mere recitals.
17. This Agreement shall not be modified or amended except by an instrument in
writing signed by all of the Parties or their successors in interest.
18. This Agreement may be executed in separate counterparts, with each counterpart
deemed to be an original having the full force and effect thereof.
8
QUEENS CREEK PROJECT SETTLEMENT AGREEMENT
NANTAHALA POWER & LIGHT, a
Division of DUKE ENERGY
CORPORATION
By; t?'r
N.E. cl: -, Jr,
President
Date: /pz"-
N.C. DEPARTMENT OF
ENVIRONMENT AND NATURAL
RESOURCES
By: -L4 0
William E. Holman
Secretary
Date: L 0 2 5 v o
N.C. WILDLIFE RESOURCES
COMMISSION
By:4&v4x '
Charles R. Fullwood
Executive Director
Date: /0, 2.S. cso

9
a
0°
NANTAHALAPOWER AND LIGHT E iLT"AAY
0 r?r?
i May 8, 2000
WETLANDS ;
!ALTER C3(lA I ?IJ FT,
Secretary
Federal Energy Regulatory Commission
Dockets-Room A
888 First St., NE
Washington, DC 20426
RE: Nantahala Power and Light
Project No. 2694 - NC (Queens Creek)
Dear Secretary:
As a result of a question that arose in the Queens Creek Scoping meeting, the
following information is to clarify the definition of full pool elevation and full
pool operating elevation.
The elevation of 2895.00 is considered full pool operating elevation. The
elevation of 2903.00 is full pool elevation for the reservoir, at this elevation water
would go through the open spillway. All elevations given based on Nantahala
datum; correction to get USGS datum: add 122.00 feet.
Enclosed please find an original and eight (8) copies of the above document. If
you have any questions, please contact me at [phone].
Sincerely,
o c• - v`) 'J--".
John C. Wishon
Hydro-relicensing Project Manager
cc: See attached list
Service List for P-2694, Queens Creek Project
Nantahala Power and Light
Area Director, MS260-ARLSQ Director
US Bureau of Indian Affairs North Carolina Recreation Division
Eastern Area Office Dept. of Natural Resources and Comm.
M. S. 260-VASQ P.O. Box 27687
Arlington, VA 22201 Raleigh, NC 27611
Regional Engineer Director
Federal Energy Regulatory Comm. North Carolina Forest Resources
Atlanta Regional Office Dept. of Natural Resouces & Comm.
3125 Presidential Parkway, Suite 30 PO Box 27687
Atlanta, GA 30340-3700 Raleigh, NC 27611
Attorney General Mr. Harry Abercrombie
North Carolin Office of Attorney 160 Gold Creek
Dept. of Justice Topton, NC 28781
PO Box 629
Raleigh, NC 27602
Mr. Bill Anderson Mr. Ted Blisterfield USEPA, Region 4
NC DWQ Office of Environmental Assessment
59 Woodfin Place Atlanta Federal Center
Asheville, NC 28801 100 Alabama Street
Atlanta, GA 30303-3104
Mr. Jim Blose Ms. Cynthia Brown
NC Division of Water Quality US Fish and Wildlife Service
512 N. Salisbury Street Ecological Services
Raleigh, NC 27604 1875 Century Boulevard, Suite 200
Atlanta, GA 30345
Ms. Sally Browning Mr. Brian Cole Supervisor
US Forest Service US Fish and Wildlife Service
90 Sloan Road 160 Zillicoa Street
Franklin, NC 28734 Asheville, NC 22801
Mr. Mark Davis Habitat Conservation Program
NC Wildlife Resources Commission
20830 Great Smoky Mtn. Expressway
Waynesville, NC 28786
Mr. John Dorney
NC DENR
4401 Reedy Creek Road
Raleigh, NC 27607
Mr. John Ellis
US Fish and Wildlife Service
Raleigh Field Office
P.O. Box 33726
Raleigh, NC 27636-3726
Mr. Edwin L. Gavin, H Esquire
NC Dept. of Justice
P.O. Box 629
Raleigh, NC 27602-0629
Mr. Chris Goudreau Coordinator
NC Wildlife Resources Commission
Route 6, Box 685
Marion, NC 28752
Mr. George Hemingway Coordinator
US Forest Service
Southern Region
1720 Peachtree Road, N.W.
Atlanta, GA 30367
Dr. Elizabeth Johns President
Nantahala Outdoor Center
13077 Hwy 19 West
Bryson City, NC 28713
Ms. Molly Diggins
Sierra Club, NC Chapter
1024 Washington Street
Raleigh, NC 27605
Dr. Gary Duven Director
Wesser Institute of Ecology
P.O. Box 177
Almond, NC 28708
Mr. John Flaig
102 Sunset Drive
Topton, NC 28781
Ms. Renee Gledhill-Earley
NC Dept. of Cultural Resources
109 East Jones Street
Raleigh, NC 27611
Mr. John H. Harrington Regional Solicitor
US Dept. of the Interior
75 Spring Street S.W.
Suite 1328
Atlanta, GA 30303
Dr. Donley Hill
US Forest Service
P.O. Box 2750
Asheville, NC 28802
Mr. Ray Johns Hydroelectric Coordinator
US Forest Service
160A Zillicia Street
Asheville, NC 28802
Mr. Scott Loftis
NC Wildlife Resources Commission
20830 Great Smoky Mtn Expressway
Waynesville, NC 28786
Mr. Chuck McGrady
Sierra Club, NC Chapter
104 Sunningdale Drive
Flat Rock, NC 28731-9567
Mr. Jim Mead
Dept. of Environmental and Natural Resources
P.O. Box 27687
Raleigh, NC 27611
Mr. Steve Reed
Division of Water Resources
1611 Mail Service Center
Raleigh, NC 27699-1611
Mr. John Wagner
3494 Winding Stairs Road
Topton, NC 28781
Mr. John Wishon Nantahala Relicensing Project Manager
Nantahal Power & Light
301 NP&L Loop
Franklin, NC 28734
Mr. Franklin T. McBride Manager
NC Widlife Resources Commission
Habitat Conservation Program
512 N. Salisbury Street
Raleigh, NC 27604-1188
Mr. Daniel McLawhorn General Counsel
NC Dept. of Environment
1601 Mail Service Center
Raleigh, NC 27699-1601
Mr. Bobby Queen
P.O. Box 1042
Andrews, NC 28901
Mr. Fred Traver Aquatic Ecology Branch
NC Division of Water Resources
1611 Mail Service Center
Raleigh, NC 27699-1611
Mr. Michael L. Wilkins District Ranger, USFS
Wayah Ranger District
90 Sloan Road
Franklin, NC 28734
.'?t " '-*
.. .
.
er?.
® North Carolina Wildlife Resources Commission®
312 N. Salisbury Street, Raleigh, North Carolina 27604-1188, 919-733-3391
Charles R. Fullwood, Executive Director
The Secretary
Federal Energy Regulatory Commission
888 First Street, N.E.
Washington, DC 20426
Route 6. Box 685
Marion. NC 28752-9229
May 9, 2000 k)
Subject: COMMENTS - Scoping Document 1
Nantahala Power and Light
Queens Creek Hydropower Project, FERC No. 2694-002
Dear Secretary:
Submitted are an original and eight copies in response to the March 9, 2000 Federal Energy Regulatory
Commission notice of Scoping Document 1 for the referenced project. The North Carolina Wildlife Resources
Commission (NCWRC) provides the following comments regarding wildlife and fisheries resources in accordance
with provisions of the Federal Power Act (16 U.S.C. 79 la et seq.) and the Fish and Wildlife Coordination Act (48
Stat. 401, as amended; 16 U.S.C. 661 et seq.).
Queens Creek Reservoir contains a warmwater fish assemblage. The NCWRC also stocks catchable trout during
the spring and early summer when temperature conditions are favorable. Therefore, the reservoir is designated as
a Public Mountain Trout Water according to our Trout Management Plan (attached) and managed under Hatchery
Supported regulations. We have no specific management plan for the reservoir at this time, but have indicated our
preferences to manage the lake as a multi-species fishery in a March 21, 2000 letter and report submitted to
Nantahala Power and Light (contained in Section 3 of NP&L's April 21, 2000 Additional Information Package).
Portions of Queens Creek on U.S. Forest Service property upstream and downstream of the reservoir also are
designated by the NCWRC as Public Mountain Trout Water and managed under Wild regulations. However, the
remaining, undesignated sections of stream on private property also contain wild trout populations.
At this time we have no specific wildlife management plans for the project vicinity other than to work with the
U. S. Forest Service to meet their Forest Management Plan goals.
During the consultation process with NP&L, the NCWRC raised the following specific environmental and
recreational issues: adequate flows in the bypass reach for aquatic organisms, providing boat and bank recreational
access to the lake, lake level management to benefit aquatic organisms, determining the potential for impingement
and entrainment of reservoir fish, determining temperature and dissolved oxygen conditions in the reservoir, and
protecting riparian and terrestrial habitat around the lake. We are continuing to negotiate with NP&L regarding
bypass flows.

Comments Page 2 May 9, 2000
FERC No. 2694-002
Many of these issues are listed in the FERC scoping notice and are discussed in NP&L's September 1999 License
Application. However, as we have gained insight into the environmental resources and operations of the project
during the course of the application process, we believe that certain resource issues require additional data to fully
analyze the impacts of project.
Reservoir Resources
The rule curve for Queens Creek Reservoir calls for a 15-foot annual fluctuation in lake levels. Also, peaking
operations have resulted in daily fluctuations of up to 4 feet. The upper portions of the lake are quite shallow and
contain the majority of the aquatic vegetation found in the lake and along the shoreline. Our March 21, 2000
report (cited above) suggests that these fluctuations may be having an impact on the limited fishery resources of the
lake.
Information contained in the License Application (summarized below) makes it difficult to determine how the rule
curve elevations (and others) actually relate to environmental conditions in the lake.
Description Elevation (NPL datum) Source
Dam Crest 2915' Exhibit F, sheet 2
Spillway 2911' Exhibit F, sheet 2
Maximum Normal 2903' Exhibit F, sheet 2; Table A-1 (pg. 4)
Upper Rule Curve 2895' Figure A-1 (pg. 5)
Lower Rule Curve 2880' Figure A-1 (pg. 5)
Intake 2844.5' Exhibit F, sheet 3
NP&L uses the term "full pool" to refer to both the Maximum Normal and Upper Rule Curve elevations in various
places in the application and other documents. Based on reports from landowners who live near the lake, it is not
clear whether the Upper Rule Curve elevation actually inundates the shallow habitat in the upper sections of the
lake that would be beneficial to fish and aquatic species. This may amount to several acres of habitat.
We support NP&L's proposal to reduce the annual fluctuation and maintain higher lake levels during the summer.
However, due to the uncertainty just mentioned, we recommend analyzing the relationship between lake level
elevation and habitat availability in Queens Creek Reservoir in order to determine the effects of existing and
proposed project operations on lake resources.
Bvaass Resources
There appear to be vernal pools near the base of the dam that may be altered by providing a minimum flow.
Analysis of a bypass flow regime should also consider the location and type of release structure.
Terrestrial Resources
The confusion of lake level elevation terminology also has implications on the 10-foot (vertical) buffer zone. If it is
from the Maximum Normal elevation (John Wishon, personal communication, 11/19/99), it is still 2 feet lower
than the dam crest. The 10-foot buffer zone should be defined in relation to a fixed elevation, such as the spillway
or dam crest. Protection of the terrestrial resources and preventing private access to the lake may not be insured if
the buffer is set too low.
Recreational Resources
Public access facilities at Queens Creek Reservoir should be useable over the range of lake levels agreed to in the
new license. More information is needed to determine if the proposed locations are suitable for small boat access
and bank fishing facilities.
$ w , OR
Comments Page 3 May 9, 2000
FERC No. 2694-002
Thank you for the opportunity to review and comment on this project. If you have any questions concerning these
comments, please contact me at 828-652-4360.
Sincerely,
Christopher Goudreau
Hydropower Relicensing Coordinator
Enclosure
cc: John Wishon (NP&L)
Frank McBride (NCWRC)
Steve Reed (NCDWR)
John Dorney (NCDWQ)
Dwayne Stutzman (NCDPR)
John Ellis (USFWS)
Ray Johns (USFS)
c:\mydata\word\hydro\npl\queens\ferc scoping.doc
A % REVIEW DRAFT for August 16, 2000 Meeting
STATE OF NORTH CAROLINA IN THE OFFICE OF
ADMINISTRATIVE HEARINGS
COUNTY OF MECKLENBURG 00 EHR 0043
DUKE ENERGY CORPORATION
Petitioner,
V.
NORTH CAROLINA ENVIRONMENTAL
MANAGEMENT COMMISSION, and its Delegate
The DIVISION OF WATER QUALITY OF THE
DEPARTMENT OF ENVIRONMENT AND
NATURAL RESOURCES,
Respondent

SETTLEMENT AGREEMENT
THIS SETTLEMENT AGREEMENT ("Agreement"), made and entered into as of the
day of August, 2000, by and between DUKE ENERGY CORPORATION, a corporation
organized and existing pursuant to the laws of the State of North Carolina, with a place of
business in Mecklenburg County, North Carolina ("Duke"), on behalf of NANTAHALA
POWER & LIGHT ("NP&L"), a division of Duke, the NORTH CAROLINA DEPARTMENT
OF ENVIRONMENT AND NATURAL RESOURCES, DIVISION OF WATER QUALITY
("DWQ"), the NORTH CAROLINA DEPARTMENT OF ENVIRONMENT AND NATURAL
RESOURCES, DIVISION OF WATER RESOURCES ("DWR"), the NORTH CAROLINA
ENVIRONMENTAL MANAGEMENT COMMISSION ("EMC"), and the NORTH
CAROLINA WILDLIFE RESOURCES COMMISSION ("WRC") (collectively "State
Agencies"), the UNITED STATES FOREST SERVICE of the U.S. Department of Agriculture
("USFS") and the UNITED STATES FISH AND WILDLIFE SERVICE of the U.S. Department
of the Interior ("USFWS") (collectively "Federal Agencies"), provides as follows:
WITNESSETH
WHEREAS, NP&L operates a hydroelectric power project on Queens Creek in Macon
County, NC known as the Queens Creek Project (the "Project") pursuant to a license issued by
the Federal Energy Regulatory Commission ("FERC") and consisting primarily of:
a) A 37-acre reservoir (the "Lake") located approximately 1 mile upstream of
Queens Creek's confluence with the Nantahala River;
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REVIEW DRAFT for August 16, 2000 Meeting
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REVIEW DRAFT for August 16, 2000 Meeting
b) An earth and rock fill dam (the "Dam") impounding the water in Queens Creek
and including a spill valve; and
c) A powerhouse (the "Station") located near Queens Creek's confluence with the
Nantahala River and being supplied with water from the Lake by a steel penstock
extending from the Dam;
WHEREAS, construction of the Dam and creation of the Lake have created reduced
stream flow in the approximately 1.5 - mile- long section of Queens Creek between the Dam and
Queens Creek's confluence with the Nantahala River ("the Bypass");
WHEREAS, on September 27, 1999, NP&L filed an application with FERC for renewal
of its license for the Project (the "New FERC License");
WHEREAS, on October 1, 1999, NP&L filed an application with DWQ for Water
Quality Certification pertaining to the New FERC License pursuant to §401 of the Clean Water
Act, as amended;
WHEREAS, on November 16, 1999, the DWQ issued Water Quality Certification
Number 3244 (the "401 Certification") for continued operation of the Station under the New
FERC License;
WHEREAS, the 401 Certification contains conditions and limitations on the operation of
the Project that DWQ believes necessary to support the protection and maintenance of water
quality standards during operation of the Project under the New FERC License, including
requirements for minimum stream flows in the Bypass;
WHEREAS, issuance or waiver of 401 Certification is a prerequisite to the issuance of
the New FERC License;
WHEREAS, NP&L's application for the New FERC License includes proposed facilities
to enhance day-use recreational opportunities at the Project's reservoir, including (a) picnic
tables, (b) a fishing pier for disabled users, and (c) a "tote and float" launch area;
WHEREAS, the Parties agree that generating power at the Station, as well as providing
for minimum stream flows in the Bypass and managing the Lake's levels for fish habitat
enhancements are all important uses of the limited waters of Queens Creek, such that, under low
inflow conditions to the Lake above the Station, the 401 Certification may provide for reductions
in minimum flow releases at the Dam into the Bypass, in conjunction with reductions in
generation volumes and expansion of targeted lake level bands;
WHEREAS, on January 13, 2000, Duke, on behalf of NP&L, filed with the Office of
Administrative Hearings ("OAH") a Petition For A Contested Case Hearing challenging the
limitations and conditions contained in the 401 Certification, with said case assigned OAH Case
Number 00 EHR 0043;
WHEREAS, the State Agencies and Federal Agencies are interested in how
-3-
REVIEW DRAFT for August 16, 2000 Meeting
environmental resources will be affected by operation of the Project under the New FERC
License;
WHEREAS, representatives of Duke/NP&L, the State Agencies, and the Federal
Agencies have participated in informal discussions to explore potential settlement of all matters
at issue in the 401 Certification and the New FERC License;
WHEREAS, Duke/NP&L, the State Agencies, and the Federal Agencies now have
reached full agreement on the resolution of all of the matters at issue in the 401 Certification and
the New FERC License.
NOW, THEREFORE, IN CONSIDERATION of all other actions and undertakings as set
forth hereinbelow, Duke on behalf of NP&L, the State Agencies, and the Federal Agencies
(collectively, hereinafter, the "Parties") contract, settle and agree as follows:
Lake Level Limitations
1. The Parties agree that the level of the Project Lake (hereinafter "lake level") at full
pool is elev. 2895.0 ft. above MSL and that, except in the case of drawdowns for emergencies
and maintenance, periods of excessive inflow or low inflow periods as described in Paragraph 11
hereof, the lake level will be maintained within one foot (plus or minus) of the full pool level for
the period May 1 through July 31 and within two feet (plus or minus) of the full pool level for the
period August 1 through October 31.
2. Except in the case of drawdowns for emergencies and maintenance, the Parties
agree that the winter drawdown of the lake level (November 1 through April 30) will be no more
than 7 ft. below full pool (i.e., no lower than elev. 2888.0 above MSL).
3. The Parties agree that the lake levels specified in Paragraphs 1 and 2 hereof will
be implemented as the normal target lake level band effective November 1, 2000.
4. NP&L agrees to advise the North Carolina Department of Environment and
Natural Resources ("DENR") and the WRC at least 15 days prior to commencing planned
maintenance drawdowns i. e., the deliberate scheduled lowering of lake level outside of the
normal target lake level band to support Lake or Dam maintenance or inspections).
5. NP&L agrees to advise DENR and WRC of any emergency drawdowns (e.g.,
drawdowns necessitated by concerns of dam safety, preparation for tropical storms, etc.), as soon
as practical immediately following, the emergency event.
6. The Parties agree that the foregoing agreements on Lake Level Limitations
("Lake Level Agreements") will be incorporated into the amendment of application for the
New FERC License NP&L will file with FERC as provided in Paragraph 17 hereof, and
that the Lake Level Agreements shall not be incorporated in the terms of the Modified 401
Certification.
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REVIEW DRAFT for August 16, 2000 Meeting
Public Recreation Facility improvements
7. The Parties agree that the day-use recreational facilities proposed to be
constructed by NP&L in its September 27, 1999 application for the New FERC License will be
consolidated at a single location within the existing FERC project boundary and thereafter
maintained by the WRC, provided that construction of the consolidated facilities is completed in
2001. The recreational facilities in the FERC application include (a) picnic tables; (b) disabled-
persons fishing pier, and (c) "tote and float" launch area.
8. The Parties agree that the foregoing agreements on Public Recreation
Facility Improvements ("Recreation Facility Agreements") will be incorporated into the
amendment of application for the New FERC License NP&L will file with FERC as
provided in Paragraph 17 hereof, and that the Recreation Facility Agreements shall not be
incorporated in the terms of the Modified 401 Certification.
Minimum Flow in Queens Creek Bypass
9. The Parties agree that the term normal minimum required generation volume shall
be defined to be 36.5 ac-ft per calendar week.
10. The Parties agree that the term low inflow period shall be defined as any period
when weekly inflow to the reservoir is at a level that cannot maintain lake level within the
normal target lake level band, while maintaining the agreed-upon minimum flow release in the
Bypass plus providing the normal minimum required generation volume.
11. Except during low inflow periods as provided below, NP&L agrees to release
water from the spill valve at the Dam at a continuous minimum rate of 2.0 cfs for the period
December 1 through May 31 and 1.0 cfs for the period June 1 through November 30.
12. The Parties agree that during low inflow periods, the following protocol will be
used in sequential fashion, with allowable adjustments made weekly to equitably allocate the
impacts of reduced water availability:
a. The minimum required generation volume will be reduced by 20% to 29.2 ac-ft
per calendar week;
b. Upon a determination by NP&L that lake level cannot be maintained within the
normal target lake level band even with implementation of the measure in a., NP&L shall reduce
minimum flow releases by 20% i.e., down to 1.6 cfs for the period December 1 through May 31
and 0.8 cfs for the period June 1 through November 30);
C. Upon a determination by NP&L that lake level cannot be maintained within the
normal target lake level band even with implementation of the measures in a. and b., the lower
limit of the normal target lake level band may be lowered by NP&L one additional foot for the
duration of the low inflow period (the "first modified lake level band");
d. Upon a determination by NP&L that lake level cannot be maintained within the
-5-
REVIEW DRAFT for August 16, 2000 Meeting
first modified lake level band, NP&L shall reduce by an additional 15% the minimum required
generation volume (down to approximately 23.7 ac-ft per calendar week);
e. Upon a determination by NP&L that lake level cannot be maintained within the
first modified lake level band even with implementation of the measure in d., NP&L shall reduce
minimum flow releases by an additional 15% i.e., down to 1.3 cfs for the period December 1
through May 31 and 0.65 cfs for the period June 1 through November 30);
f. Upon a determination by NP&L that lake level cannot be maintained within the
first modified lake level band even with implementation of the measure in d. and e., the lower
limit of the first modified lake level band may be lowered by NP&L one additional foot for the
duration of the low inflow period (the "second modified lake level band");
g. Upon a determination by NP&L that lake level cannot be maintained within the
second modified lake level band, the protocol preceding establishment of the first and second
modified lake level bands as specified above shall be repeated, with NP&L first reducing
minimum required generation volumes in increments of 10% and subsequently reducing
minimum flow releases in increments of 10%, followed by one foot incremental reductions in the
lower limit of the second modified lake level band, until inflow has increased to a point at which
lake level has been restored to the normal target lake level band.
13. NP&L agrees that upon its determination that lake level has, during the period
May 1 through October 31, fallen below elev. 2888.0 ft. above MSL for reasons other than a
maintenance or emergency drawdown, NP&L shall promptly report that determination to DWR.
DWR may then choose to convene a meeting with the WRC and NP&L to discuss any reasonable
and desirable options to avoid further reduction of lake level.
14. NP&L agrees, by no later than of every calendar year during the life of
the FERC License, beginning on , 2002, to provide to DWR an annual report of
measured lake levels during the previous calendar year, including a certification by NP&L that
required minimum flow releases were met and explanation of any deviations from normal target
lake level band with detail adequate to demonstrate compliance with the terms of this
Agreement.
15. The Parties agree that the above-described low inflow protocol and reporting
requirements shall be implemented during the Spring of 2001, but not later than May 31, 2001.
16. The Parties agree that the foregoing provisions pertaining to minimum flow
releases, normal minimum required generation volume, and low inflow protocol shall be
incorporated as terms of a Modified 401 Certification.
Amendment To FERC Application
17. NP&L will file with FERC an amendment to its September 27, 1999 application
for the New FERC License for the Project incorporating the agreements described in Paragraphs
6 and 8 hereof no later than
-6-
REVIEW DRAFT for August 16, 2000 Meeting
Miscellaneous
18. Within 30 days of the date of this Agreement, DENR will issue a Modified 401
Certification with terms as required by the terms of this Agreement.
19. Duke shall withdraw, with prejudice, its contested case petition in OAH Case No.
00 EHR 0043. The notice of withdrawal shall be filed in OAH within 5 days of receipt by NP&L
of the Modified 401 Certification as specified in Paragraph 18 of this Agreement. Each party
shall bear its own costs and, contingent upon execution of all the terms of this Agreement, each
party expressly waives any right to collect attorney fees from any other party to this Agreement.
20. Nothing in this Agreement shall prevent, or be construed to prevent, NP&L from
making any future application(s) for modification of any license or permit related to operation of
the Project, and the State Agencies and Federal Agencies expressly agree and represent that they
will not use any of the terms of this Agreement as a basis for denying any future application(s).
21. The State Agencies and Federal Agencies agree that the terms of this Agreement
resolve their concerns regarding continued operation of the Project under the New FERC License
and therefore that they (1) will support issuance of the New FERC License that is consistent with
the terms of this Agreement and (2) will not propose or otherwise communicate to FERC or to
any other federal or state resource agency any comments, conditions, recommendations or
prescriptions that are inconsistent with the terms of this Agreement or that if followed or adopted
by FERC as part of the New FERC License would reduce the economic value of the Project to
NP&L.
22. In the event that the New FERC License does not incorporate, approve, or allow
implementation of the Lake Level Agreements and Recreation Facility Agreements referenced in
Paragraphs 6 and 8 hereof, the Parties agree to promptly confer to determine what, if any,
modifications to this Agreement should be made to address the failure of the New FERC License
to incorporate or approve such agreements.
23. This settlement is a compromise of disputed claims. The actions taken hereunder
are not to be construed as any admission of liability on the part of any settling party, including its
agents, representatives, attorneys or employees, as to all of whom liability is expressly denied.
24. This Agreement shall be governed by and construed in accordance with the laws
of the State of North Carolina. This Agreement contains the entire agreement between the
parties. The terms of this Agreement are contractual and not mere recitals.
25. This Agreement shall not be modified or amended except by an instrument
in writing signed by all of the Parties or their successors in interest. However, no amendment of
this Agreement is needed in order for NP&L to apply for or obtain future amendments to the
New FERC License on or after the date of issuance of the Modified 401 Certification.
26. This Agreement may be executed in separate counterparts, with each
counterpart deemed to be an original having the full force and effect thereof.
-7-
` REVIEW DRAFT for August 16, 2000 Meeting
Read, reviewed and agreed to this the day of August, 2000.
NANTAHALA POWER & LIGHT, a
Division of DUKE ENERGY
CORPORATION
Bv:
N.E. Tucker, Jr.
President
N.C. DEPARTMENT OF
ENVIRONMENT AND NATURAL
RESOURCES
By:
William E. Holman
Secretary
N.C. WILDLIFE RESOURCES
COMMISSION
By:
Charles R. Fullwood
Executive Director
U.S. FOREST SERVICE
U.S. DEPARTMENT OF AGRICULTURE
By:
John F. Ramey
Forest Supervisor
National Forest in NC
U.S. FISH AND WILDLIFE SERVICE
U.S. DEPARTMENT OF INTERIOR
By:
-8-
Garland B. Pardue, Ph.D.
Field Supervisor
. ? . ? REVIEW DRAFT for August 16, 2000 Meeting
CERTIFICATE OF SERVICE
I hereby certify that a copy of the foregoing SETTLEMENT AGREEMENT has been
delivered by hand to the Office of Administrative Hearings and by first class mail to opposing
counsel addressed as follows:
The Honorable Julian Mann, III
Chief Administrative Law Judge
Office of Administrative Hearings
Capehart-Crocker House
424 North Blount Street
P. O. Drawer 27447
Raleigh, North Carolina 27611-7447
Assistant Attorney General
N.C. Department of Justice
114 West Edenton Street
Education Building
P.O. Box 629
Raleigh, North Carolina 27602-0629
Attorney for Respondent
This the day of August, 2000.
183938.2
State of North Carolina
Department of Environment
and Natural Resources
Division of Water Quality
James B. Hunt, Jr., Governor
Bill Holman, Secretary
Kerr T. Stevens, Director
Mr. John Wishon
Nantahala Power and Light
301 NP&L Loop Road
Franklin, NC 28734
Dear Mr. Wishon:
41
,& 1*
A-% 0Vft% 00111.
NCDENR
Division of Water Quality
April 10, 2000
Subject: Queens Creek Hydroelectric Plant
DWQ Project No. 991055
FERC No. 2694
Macon County
In response to your letter Dated April 3, 2000, we are willing to meet to discuss the subject 401 Water
Quality Certification No. 3244 issued November 16, 1999. However, no one from this Office who is
familiar with this project will be able to attend the meeting scheduled for April 24, 2000.
Please call me at [phone] or Mr. Todd St. John of this Office at [phone] to schedule a
meeting.
Attachments
cc: ,_W6 St. John, Wetlands/401. Unit
Asheville Regional Office
Fred Tarver, DWR
Mary Penny Thompson, Attorney General's Office
File
4401 Reedy Creek Road, Raleigh, NC 27607 Telephone [phone] FAX [phone]
An Equal Opportunity Affirmative Action Employer 50% recycled/ 10% post-consumer paper
State of North Carolina
Department of Environment
and Natural Resources
Division of Water Quality
James B. Hunt, Jr., Governor
Bill Holman, Secretary
Kerr T. Stevens, Director
Mr. John Wishon
Nantahala Power and Light
301 NP&L Loop Road
Franklin, NC 28734
bear Mr. Wishon:
e??
NCDENR
Division of Water Quality
April 10, 2000
Subject: Queens Creek Hydroelectric Plant
DWQ Project No. 991055
FERC No. 2694
Macon County
In response to your letter Dated April 3, 2000, we are willing to meet to discuss the subject 401 Water
Quality Certification No. 3244 issued November 16, 1999. However, no one from this Office who is
familiar with this project will be able to attend the meeting scheduled for April 24, 2000.
Please call me at [phone] or Mr. Todd St. John of this Office at [phone] to schedule a
meeting.
Joh . Dorney
W lands/401 Unit
Attachments
cc: .Todd St. John, Wetlands/401 Unit
Asheville Regional Office
Fred Tarver, DWR
Mary Penny Thompson, Attorney General's Office
File
4401 Reedy Creek Road, Raleigh, NC 27607 Telephone [phone] FAX [phone]
An Equal Opportunity Affirmative Action Empiover 50% recycled/ 10% post-consumer paper
NANTAHALA
POWER AND LIGHT
/ 1j"
May 1, 2000

RE: Additional Information Package for the Queens Creek Hydroelectric Project (Project No.
2694-NC)
Dear (See attached list):
Please find attached comments from the United States Geological Survey that were received
after the Additional Information Package was submitted. Please add them to our additional
information package. If you have any questions, please contract me at [phone].
Sincerely,
John C. Wishon,
Nantahala Relicensing Project Manager
iu
-a?
DS GRUQ
UALl?t.`,q„?s .,
Mailing List for Queens Creek
Additional Information
W. E. Anderson
NC DWQ
59 Woodfin Place
Asheville, NC 28801
Mr. Joffrey Brooks
NC WRC
P.O. Box 972
Waynesville, NC 28786
Mr. Mark Cantrell
US Fish and Wildlife Service
160 Zillicoa St.
Asheville, NC 28801
Mr. Mark Davis
NC WRC
20830 Great Smoky Mountain Expressway
Waynesville, NC 28786
Mr. John Ellis
US Fish and Wildlife Service
P.O. Box 33726
Raleigh, NC 27636-3726
Mr. Christopher Goudreau
NC Wildlife Resources Commission
Rt. 6, Box 685
Marion, NC 28752-9229
Mr. Jim Borawa
NC Wildlife Resources Commission
37 Newcross North
Asheville, NC 28805
Ms. Sally Browning
Nantahala National Forest Service
90 Sloan Road
Franklin, NC 28734
'Mr. Dannie Childers
Eastern Band of Cherokee Indians
P.O. Box 455
Cherokee, NC 28719
Mr. John Dorney
NC Dept. of Environment and Natural Resources
4401 Reedy Creek Rd
Raleigh, NC 27607
Ms. Renee Gledhill-Earley
NC Dept. of Cultural Resources
109 East Jones Street
Raleigh, NC 27601-2807
Mr. Clay Griffith
NC SHPO
Archieves and History Western Office 1 Village
Asheville, NC 28801
Ms. Nann Guthrie
DEHNR
59 Woodfin Place
Asheville, NC 28801
Dr. Donley Hill
U. S. Dept, of Agriculture Forest Service
190 Zillicoa Street
Asheville, NC 28802
Mr. Bob Johnson
U. S. Army Corps of Engineers
151 Patton Avenue Room 143
Asheville, NC 28801-5006
Mr. Scott Loftis
NC Wildlife Resources Commission
20830 Great Smoky Mtn. Exp.
Waynesville, NC 28786
Mr. Jim Mead
DENR
1611 Mail Service Center
Raleigh, NC 27699-1611
Ms. Malka Pattison
US Dept. of Interior, BIA
1849 C Street, NW Mail Stop 4513 - MIB
Washington, DC 20240
Ms. Gloria Putnam
Division of Water Quality
1617 Mail Service Center
Raleigh, NC 27699-1617
Mr. John Hefner
U. S. Fish and Wildlife Service
P.O. Box 33726
Raleigh, NC 27636-3726
Mr. Chris Hoberg
U.S. Environmental Protection Agency - Region 4
61 Forsyth St., SW Atlanta Federal Center - 13th
Atlanta, GA 30303
Mr. Steve Kartalia
FERC
HL 11.1 888 1 st St. NE
Washington, DC 20426
Mr. Frank McBride
NC Wildlife Resources Commission
512 N. Salisbury St. Archdale Bldg.
Raleigh, NC 27604
Mr. David Moore
NC SHPO
1 Village Lane Suite 3
Asheville, NC 28803-2677
Ms. Martha Peterson
Office of Rep. Charles H. Tayler
22 South Pack Square Suite 330
Asheville, NC 28801
Mr. Steven Reed
NC Dept. of Environment and Natural Resources
1611 Mail Service Center
Raleigh, NC 27611
Ms. Jeanne Riley
U. S. Dept. of Agriculture Forest Service
Rt. 1, Box 16A
Robbinsville, NC 28771
Mr. Dwayne Stuzzman
NC Division of Parks & Recreation
59 Woodfin Place
Asheville, NC 28801
Mr. J. Curtis Weaver
USGS WRD
3916 Sunset Ridge Road
Raleigh, NC 27607
Ms. Mary Roundtree
National Park Service
100 Alabama Street, SW
Atlanta, GA 30303
Ms. Amy Wales
Tennessee Valley Authority
1101 Market Street CST 17D
Chattanooga, TN 37402
Mr. David Yow
NC Wildlife Resources Commission
57 Hilltop Road
Asheville, NC 28803-3122

United States Department of the Interi(
U.S. GEOLOGICAL SURVEY
3916 Sunset Ridge Road
Raleigh, North Carolina 27607
April 18, 2000
Mr. John Boaze, Senior Biologist
Fish and Wildlife Associates, Inc.
P.O. Box 241
Whittier, North Carolina 28789
Dear Mr. Boaze:
The purpose of this letter is to respond to your letter dated March 9, 2000, in which you sought comments concerning
the determination of a 7-day, 10-year (7Q10) low-flow discharge for a site on Queens Creek in Macon County, North
Carolina. Your letter was received by this office on March 20, 2000. Based on the procedures you utilized to determine
an estimate for the 7Q10 discharge, the USGS offers the following comments:
(1) The methods that you used to determine the 7Q10 discharge are not consistent with the methods used by the
USGS to determine 7Q10 discharges. The values listed as 7Q10 discharges in your letter are not 7Q10 dis-
charges, rather these values are the lowest average flows for a 7-day period occurring in the 10-year segments
of your records (1950-59, 1960-69, etc.). Such values are minimums based on descriptive statistics, similar
to the lowest 7-day averages reported for various periods in the U.S. Geological Survey's (USGS) annual
water data reports. By correct definition, the 7Q10 discharge is a predictive statistic that represents the lowest
flow for a 7-day period that would be expected to occur, on average, one time in 10 years, two times in 20
years, etc. In any given year, the probability of occurrence is the reciprocal of the recurrence interval. Thus,
for a 10-year recurrence interval, the annual probability of occurrence is 10 percent. The USGS's determina-
tion of a 7Q10 discharge is dependent on the type of discharge records available at a particular stream location.
Sites are generally one of three types: continuous-record gaging station (daily discharges), partial-record sta-
tion (miscellaneous measurements), or ungaged site (no data). Detailed information concerning the methods
of low-flow analyses used by the USGS is available in USGS Techniques of Water-Resources Investigations
report (Book 4, Chapter B1) titled Low flow Investigations (Riggs, 1972).
(2) The record of streamflow you used to determine a 7Q10 discharge is based on flows released through the tur-
bines during power generation. While flows released through turbines can be measured to determine the
amount of water used in such operations, these flows cannot be regarded as representative of "natural" and/
or total flows that could be properly analyzed for determination of streamflow statistics. By way of the exam-
ple you provided in your letter, you acknowledge the operation of the turbines during the week with no power
generation occurring on some weekends. To designate those days in which the turbines did not operate as
"zero-flow" days does not represent the actual flows that may have occurred over a spillway or via seepage
around and below the dam. Such designations would bias your estimates on the low side. Even if the turbines
were operated each day, the data would have to be considered suspect due to the recognition that such flow
patterns are reflective of the power generation requirements and not naturally occurring streamflows.
(3) Information that describes how the USGS determined 7Q10 discharge for Queens Creek at the dam has been
provided to Mr. John Wishon of the Nantahala Power and Light Company. Because no site-specific stream-
flow data is available for Queens Creek at the dam (drainage area 3.6 miz), the 7Q 10 discharge has been deter-
mined using several techniques:
(a) The 7Q10 yield (flow per square mile drainage basin, ft3/s/mi2 ) determined at an upstream partial-record
measuring station on Queens Creek near Nantahala (station id 03505266, drainage area 2.79 mil) was
applied to the drainage area at the dam. The 7Q10 discharge at the partial-record station is 1.3 ft3/s, or
0.47 ft3/s/mil expressed as a yield. At the dam, the 7Q10 discharge is thus estimated as 1.7 ft3/s. Because
only three discharge measurements were used in the low-flow analysis at the partial-record station, other
means of assessing the low-flow characteristics are necessary to confirm or clarify the estimates
(described below sub-sections b and c).
(b) A statistical relation is available for determining 7Q10 discharges in the mountains region of North Carolina.
The relation was developed by the USGS as part of statewide investigation of low-flow characteristics
[phone] • FAX [phone]
Mr. John Boaze
April 18, 2000
Page 2
conducted in the late 80's/early 90's and published in USGS Water-Supply Paper 2403, Low-flow char-
acteristics of streams in North Carolina (Giese and Mason, 1993). The relation for determining 7Q10
discharges at sites in the mountains and western Piedmont (Hydrologic Area 10) is as follows:
7Q10 = 0.155 • (DA x MAR)"01
where 7Q10 = 7Q10 discharge, in ft3/s,
DA = drainage area, in mil
MAR = mean annual runoff (or average discharge yield), in ft3/s/mil
In the Macon County area, the mean annual runoff is typically between 3 and 3.5 ft3/s/mil for streams in
the higher elevations. The mean annual runoff was determined by examining the average annual dis-
charges at nearby streamflow stations where the USGS has continuous records of discharge.
Applying the relation to the location at the dam on Queens Creek, the 7Q10 discharge is estimated as:
7Q10 = 0.155 • (3.6 x 3.0) 1.01
7Q10 = 0.155 • (10.8)1.01
7Q10 = 0.155. 11.1
7Q10 = 1.71 ft3/s, or 0.48 ft3/s/mil
The 7Q10 yield of 0.48 ft3/s/mil is consistent with that determined at the upstream partial-record station.
At one point in your letter, you made use of the statistical relation to compute an estimate of the 7Q10
discharge. However, the drainage area used is 4.24 mil which is the drainage area of Queens Creek at its
mouth. Given the explanations which refer to flow determinations at the dam, it is unclear why the drain-
age area at the mouth was being used in the computations.
(c) An additional method for determining low-flow characteristics for ungaged locations is to examine the
known low-flow discharges at nearby continuous-record gaging stations in order to identify a range of
7Q10 discharge yields that can be averaged to determine a representative 7Q10 yield at the ungaged loca-
tion. An enclosed table of 7Q10 and average discharges at selected stations in vicinity of Queens Creek
provides a basis for determining 7Q10 yield and average discharge, expressed in ft3/s/mil, that can be
applied to locations on Queens Creek. While statistics are listed in the table for 12 sites, use of the 7Q10
yields at four closest sites (Prentiss, Franklin, Cullasaja, Rainbow Springs) results in an average 7Q10
yield of about 0.5 ft3/s/mil, comparable to the yields (0.47, 0.48) determined from use of the upstream
partial-record station or statistical relation.
Based on the above methods that have been utilized to determine 7Q10 discharges, the USGS estimates the
7Q10 discharge for Queens Creek at the dam (drainage area 3.6 mil) to be 1.7 ft3/s (or 0.48 ft3/s/mi2). This
value was provided to Mr. John Wishon of the Nantahala Power and Light Company. Be aware that this esti-
mate is considered reflective of "natural" flow conditions and does not account for any adjustments to the flow
characteristics caused by the operation of the dam. Given the lack of streamflow information for Queens
Creek downstream of the dam, the only effective means of determining the low-flow characteristics would be
to establish a stream gage to collect streamflow records.
(4) As stated above (3b), the mean annual runoff (or, average discharge yield) estimated for Queens Creek is
3.0 ft3/s/miz. Your letter indicates that an average discharge of 8.3 ft3/s (or, 2.3 ft3/s/mil) was computed from
historical streamflow records collected at the dam. You did not specifically state how your estimate of the
average annual discharge was determined. The information in your letter has been interpreted to mean that
your estimate was computed from the flows recorded during the power generation. Consistent with the com-
ment made in section 2, this estimate of average annual discharge cannot be considered representative of the
total flow that may have occurred during the weekly periods during which the turbines did not operate each
day. Based on the computation algorithm you used in which days of no power generation are considered
"zero-flow" days, the estimate of average discharge would thus be biased on the low side.
Mr. John Boaze
April 18, 2000
Page 3
The enclosed table indicates a variable range in average discharges at the nearby stations. While the table
indicates a variable range, the higher average discharges tend to occur on streams in the higher elevations
(Rosman, Rainbow Springs, Bryson City) where more rainfall typically occurs. The average annual discharge
determined at a discontinued gaging station Nantahala River at Nantahala (station id 03505500, drainage area
144 mil, period of record 1942-81) is 3.5 ft3/s/mil. Thus for Queens Creek, an estimate of 3.0 ft3/s/miz (for
use in the statistical relation) is considered more representative of the average discharge in this basin.
If you have any questions regarding this information, please contact us at [phone].
Enclosure
Sincerely, 1
J. Curtis Weaver
Hydrologist
Table 1: -Low-flow 7Q10 discharges and average discharges at selected long-term gaging stations in vicinity of Queens Creek, Macon
County, North Carolina
USGS Station name Period of Drainage 7Q10 discharge Average discharge
Station analyses" area, mil
ft3/s ft3/s/mi2 ft3/s ft3/s/mi2
03439000 French Broad River at Rosman 1908,1936-94 67.9
03440000 Catheys Creek near Brevard 1945-54, 11.7
1987-94
03446000 Mills River near Mills River 1925-94 66.7
03500000 Little Tennessee River near Prentiss 1944-97 140
03500240, Cartoogechaye Creek near Franklin 1962-93 57.1
03500500 Cullasaja River at Cullasaja 1932-70 86.5
03504000 Nantahala River near Rainbow Springs 1941-96 51.9
03509000 Scott Creek above Sylva 1943-75 51.0
03510500 Tuckasegee River at Dillsboro 1935-81 347
03512000 Oconaluftee River at Birdtown 1949-95 184
03513500 Noland Creek near Bryson Creek 1937-71 13.8
03550000 Valley River at Tomotla 1905-08, 104
1914-16,
1919-95
55 0.81 243 3.6
7.7 0.66 37.2 3.2
31 0.46 170 2.5
83 0.45 393 2.8
28 0.49 144 2.5
40 0.46 223 2.6
41 0.79 207 4.0
28 0.55 117 2.3
198 0.57 796 2.3
103 0.56 522 2.8
6.4 0.46 44 3.2
30 0.29 257 2.5
Averages 0.55 2.9
a. Period of analysis is expressed in climatic years which are defined as annual periods April 1 through March 31 and designated by the
year in which the period begins. Climatic years are used in low-flow analyses and, for most of the sites listed in the table, are equiva-
lent to the period of records available at these sites.
State of North Carolina
-Department of Environment
and Natural Resources
Division of Water Quality
James B. Hunt, Jr., Governor
Bill Holman, Secretary
Kerr T. Stevens, Director
Mr. John Wishon
Nantahala Power and Light
301 NP&L Loop Road
Franklin, NC 28734
bear Mr. Wishon:
ffl?.?VA
IT 0
A&?j 0
NCDENR
Division of Water Quality
April 10, 2000
Subject: Queens Creek Hydroelectric Plant
DWQ Project No. 991055
FERC No. 2694
Macon County
In response to your letter Dated April 3, 2000, we are willing to meet to discuss the subject 401 Water
Quality Certification No. 3244 issued November 16, 1999. However, no one from this Office who is
familiar with this project will be able to attend the meeting scheduled for April 24, 2000.
Please call me at [phone] or Mr. Todd St. John of this Office at [phone] to schedule a
meeting.
Y,
Attachments
Joh . Dorney
W lands/401 Unit
cc: Todd St. John, Wetlands/401 Unit
Asheville Regional Office
Fred Tarver, DWR
.J ry Penny Thompson, Attorney General's Office
,File
4401 Reedy Creek Road, Raleigh, NC 27607 Telephone [phone] FAX [phone]
An Equal Opportunity Affirmative Action Employer 50% recycled/ i 0% post-consumer paper
NANTAHALA
POWER AND LIGHT
April 3, 2000
Mr. John Dorney
NC DENR
4401 Reedy Creek Road
Raleigh, NC 27607
Re: Queens Creek Hydroelectric Project
Nantahala Power and Light
FERC # 2694-NC
Dear Mr. Dorney:
nttl:ITV' ?C:c
In an effort to reach a settlement agreement on the conditions of the 401 Certification relating to
the relicensing of the Queens Creek Hydroelectric Project, Nantahala Power and Light officials
would like to meet with all interested parties on April 24, 2000 at 1:00 PM in the conference
room at NP&L's office, 301 NP&L Loop, Franklin, NC. The purpose of the meeting is to review
the basis for the instream flow conditions that were placed on the 401 Certification by the
Division of Water Quality and try to resolve any differences between the parties.
A copy of the 401 Certification is attached for your review.
If you have any questions, please contract me at [phone],
Sincerely,
John Wishon,
Nantahala Relicensing Project Manager
60"
soro
.0V
NNn
N?
av^'J
Mailing List for Queens Creek 401 Certificat
Mr. John Ellis Mr. Franklin T. McBride, Manager
U.S. Fish and Wildlife Service Habitat Conservation Program
Raleigh Field Office NC Wildlife Resources Commission
P.O. Box 33726 512 N. Salisbury Street
Raleigh, NC 27636-3726 Raleigh, NC 27604-1188
Mr. Mark Davis Mr. Fred Tarver
Habitat Conservation Program Aquatic Ecology Branch
NC Wildlife Resources Commission NC Division of Water Resources
20830 Great Smoky Mtn. Expressway 1611 Mail Service Center
Waynesville, NC 28786 Raleigh, NC 27699-1611
Mr. Michael L. Wilkins
District Ranger, USFS
Wayah Ranger District
90 Sloan Road
Franklin, NC 28734
Mr. Jim Blose
NC DENR
Division of Water Quality
512 N. Salisbury Street
Raleigh, NC 27604
Dr. Gary Duven, Director
Wesser Institute of Ecology
P.O. Box 177
Almond, NC 28708
Mr. Jim Mead
Dept. of Environmental and Natural
Resources
P.O. Box 27687
Raleigh, NC 27611
Karen McKay
3801 Winding Stairs Road
Andrews, NC 28901
John Flaig
102 Sunset Dr.
Topton, NC 28781
Mr. John Dorney
NC DENR
4401 Reedy Creek Road
Raleigh, NC 27607
Donley Hill
US Forest Service
P.O. Box 2750
Asheville, NC 28802
Mr. Scott Loftis
NC Wildlife Resource Commission
20830 Great Smoky Mountain Expy
Waynesville, NC 28786
John Wagner
3494 Winding Stairs Rd.
Topton, NC 28781
Sally Browning
US Forest Service
90 Sloan Road
Franklin, NC 28734
Mr. Bill Anderson
NC DWQ
59 Woodfin Place
Asheville, NC 28801
ion Negotiations
Mr. Chris Goudreau
NC Wildlife Resources Commission
Route 6, Box 685
Marion, NC 28752
Mr. Ted Blisterfield
USEPA, Region 4
Office of Environmental Assessment
Atlanta Federal Center
100 Alabama Street, S.W.
Atlanta, GA 30303-3104
Dr. Bunny Johns
Nantahala Outdoor Center
13077 Hwy 19 West
Bryson City, NC 28713
Mr. Steve Reed
Division of Water Resources
1611 Mail Service Center
Raleigh, NC 27699-1611
Bobby Queen
P.O. Box 1042
Andrews, NC 28901
Harry Abercrombie
160 Gold Creek
Topton, NC 28781
Ray Johns
US Forest Service
160A Zillicia St.
Asheville, NC 28802

''NET[ANU GR0U
i Er' OUALETY SEGTi' .
0C - w:51W?i
State of North Carolina
Department of Environment
and Natural Resources
Division of Water Quality
James B. Hunt, Jr., Governor
Bill Holman, Secretary
Kerr T. Stevens, Director
` 0 •
A;12
woo
NCDENR
NORTH CAROLINA DEPARTMENT OF
ENVIRONMENT AND NATURAL RESOURCES
November 16, 1999
Mr. Tom Smitherman
Nantahula Power and Light Company
301 NP&L Loop Road
Franklin, North Carolina 28734
Re: Certification Pursuant to Section 401 of the Federal Clean Water Act
Proposed Relicensing of Queen's Creek Hydroelectric Plant
DWQ Project #: 991055
FERC Project #: 2694
Macon County
Attached hereto is a copy of Certification No. 3244 issued to the Nantahula Power and Light Company
dated November 16, 1999.
If we can be of further assistance, do not hesitate to contact us.
S' rel
T. tevens
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cc: Asheville DWQ Reg=onal Office
Mr. John Dorney
Fred Tarter, DWR
Frank McBride, WRC
John Boa, Fish and Wildlife Associates
Ted Bisterfield, US EPA
Secretary, FERC
Central Files

sN-ULAICS uRUt1r
Wetlands/401 Unit 4401 Reedy Creek Road Raleigh, North Carolina 27607
Telephone [phone] FAX # [phone]
An Equal Opportunity Affirmative Action Employer 50% recycled/ 10% post consumer paper

NORTH CAROLINA 401 WATER QUALITY CERTIFICATION
THIS CERTIFICATION is issued in conformity with the requirements of Section 401
Public Laws 92-500 and 95-217 of the United States and subject to the North Carolina Division
of Water Quality (DWQ) Regulations in 15 NCAC 2H, Section .0500. It is issued to Nantahula
Power and light Company in Macon County pursuant to an application filed on the 151 day of
October 1999 to relicense the Queens Creek hydroelectric project.
The application provides adequate assurance that the discharge of fill material into the
waters of Queens Creek in conjunction with the proposed development will not result in a
violation of applicable Water Quality Standards and discharge guidelines. Therefore, the State
of North Carolina certifies that this activity will not violate the applicable portions of Sections
301, 302, 303, 306, 307 of PL 92-500 and PL 95-217 if conducted in accordance with the
application and conditions hereinafter set forth.
This approval is only valid for the purpose and design that you submitted in your
application, as described in the Public Notice. If you change your project, you must notify us
and send us a new application for a new certification. If the property is sold, the new owner must
be given a copy of the Certification and approval letter and is thereby responsible for complying
with all conditions. If total wetland fills for this project (now or in the future exceed one acre,
compensatory mitigation may be required as described in 15A NCAC 2H .0506 (h) (6) and (7).
For this approval to be valid, you must follow the conditions listed below. In addition, you
should get any other federal, state or local permits before you go ahead with your project
including (but not limited to) Sediment and Erosion control, Coastal Stormwater, Non-discharge
and Water Supply watershed regulations.
Condition(s) of Certification:
Appropriate sediment and erosion control practices which equal or exceed those
outlined in the most recent version of two manuals. Either the "North Carolina
Sediment and Erosion Control Planning and Design Manual" or the "North Carolina
Surface Mining Manual" (available from the Division of Land Resources in the
DEHNR Regional or Central Offices). The control practices shall be utilized to prevent
exceedances of the appropriate turbidity water quality standard (50 NTUs in all fresh
water streams and rivers not designated as trout waters; 25 NTUs in all lakes and
reservoirs, and all saltwater classes; and 10 NTT Ts in trout waters);
2. All sediment and erosion control measures placed in wetlands or waters shall be
removed and the natural grade restored after the Division of Land Resources has
released the project;
3. Measures shall be taken to prevent live or fresh concrete from coming into contact with
waters of the state until the concrete has hardened;
4. Minimal flows shall be released from the dam as follows in order to protect downstream
aquatic life: January-3.5 cfs; February to May-4.0 cfs; June-3.5 cfs; July-3.0 cfs;
August-2.5 cfs; September and October-2.0 cfs; November-2.5 cfs and December -3.5
cfs.
y?4 • •
Violations of any condition herein set forth shall result in revocation of this Certification
and may result in criminal and/or civil penalties. This Certification shall become null and void
unless the above conditions are made conditions of the Federal 404 and/or coastal Area
Management Act Permit. This Certification shall expire upon expiration of the 404 or CAMA
permit.
If this Certification is unacceptable to you have the right to an adjudicatory hearing upon
written request within sixty (60) days following receipt of this Certification. This request must
be in the form of a written petition conforming to Chapter 150B of the North Carolina General
Statutes and filed with the Office of Administrative Hearings, P.O. Box 27447, Raleigh, N.C.
27611-7447. If modifications are made to an original Certification, you have the right to an
adjudicatory hearing on the modifications upon written request within sixty (60) days following
receipt of the Certification. Unless such demands are made, this Certification shall be final and
binding.
This the 16'' day of November 1999
DIVISION OF WATER QUALITY
Steve
WQC#: 3244
Fish and Wildlife Associates, Inc.
P.O.Box241
Whittier, NC 28789
[phone]
January 5, 2000
Mr. John Dorney
NC Dept. of Environment and Natural Resources
Division of Environmental Management
4401 Reedy Creek Rd
Raleigh, NC 27607
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Re: Queens Creek Hydroelectric Project (FERC No. 2694-002-NC) license application
deficiencies and request for additional information.
Dear Mr. Dorney:
Enclosed is a copy of the letter and attached schedules indicating deficiencies and
additional information being requested by the Federal Energy Regulatory Commission
regarding the application for re-license of the Queens Creek Hydroelectric Project (FERC
No. 2694-002-NC).
In accordance with the FERC, we will soon be consulting with your agency to
rectify these deficiencies and discrepancies. If there are any questions concerning this
matter, please contact me at [phone].
Sincerely,
John L. Boaze
Senior Biologist

Cc: Mr. J. Curtis Weaver, USGS WRD
Mr. David Brook, Historic Preservation Office
Mr. Steven Reed, NC Dept. of Environment and Natural Resources
Ms. Linda B. Oxendine, Tennessee Valley Authority
Mr. Christopher Goudreau, NC Wildlife Resources Commission
Mr. Jim Mead, DENR
FEDERAL ENERGY REGULATORY COMMISSION
WASHINGTON, D. C. 24426
Project No. 2694-002-North Carolina
Queens Creek Hydroelectric Project
OFFICE OF HYDROPOWER LICENSING Nantahala Power and Light Company
Mr. Thomas D'. Smitherman
Vice President
Production, Transmission, and Distribution
301 NP&L Loop Road
Franklin, NC 28743

Dear Mr. Smitherman:
Your license application filed on September 27, 1999, fails to conform to the
requirements of the Commission's regulations. A list of deficiencies is enclosed as
Schedule A.
Under section 16.9(b)(2), and 4.32(e)(1) of the regulations you have 90 days from
the date of this letter to correct the deficiencies in your application. Further, under
Section 4.32(g), you have 120 days from the date of this letter to provide additional
information needed by the staff to complete its evaluation of your application (see
Schedule B). If the correction of any deficiency or the submission of additional
information causes any other part of the application to be inaccurate, that part must also
be revised and refiled by the due date. Also, please be aware that further requests for
additional information may be sent to you at any time before final action on your
application.
No resource agency, Indian Tribe, or interested person requested additional
scientific studies during public notice of the tendering of your application, which ended
November 26, 1999.
Within 5 days of receipt, provide a copy of this letter and the attached schedules to
all agencies you will consult in response to this deficiency and additional information
request. Then, when you file the requested information with the Commission, you must
provide a complete copy of the information to each agency consulted under section 16.8
of the regulations, and all parties on the service list. In accordance with section 4.32(b)
of the regulations, please file the original and 8 copies of the information requested with
the Secretary of the Commission.
2
Please call Kevin Whalen at [phone] if you have any questions.
Sincerely,
Thomas E. DeWitt
Chief
Licensing East Branch
Enclosures:
Schedule A
Schedule B
Schedule A
Project No.2694
NEW LICENSE
MINOR OR MAJOR, LESS THAN 5 MW, CONSTRUCTED HYDRO EXHIBITS A,F-H REGULATIONS (4.61)
SUBJECT
DEFICIENT
COMMENTS
I. Initial Statement §4.61(b)
Project Name
Project Location
Address
Federal, state, local political entities
and facilities identified §4.32(a)(2)
U.S. Lands Occupied
II. Exhibit,A - Proj. Desc.
No. generating units, capacity, future?
Turbine type
Describe prof. operation
Annual generation
Reservoir surface area
Head
Hydraulic capacity
Flow duration curve
Drainage area
Sizes, capacities, & constr. materials of
structures
Project cost
Proiect Duroose
III. Exhibit F-Drawings of Project Works
§4.61(e)
Elevation, profile, section of dam and
powerhouse
Drawings of other structures
North Arrow
IV. Exhibit G - Map §4.61(f)
Shows location of all facilities and
relationship to stream and nearest town
Correct scale
Project boundary
See III below.
Exhibit F contains illegible drawings. Please provide
legible copies of the exhibit.
Drawing F-1 shows a cofferdam at the upstream heel of
the dam, that is not described anywhere and isn't shown
on any other drawing. Please amend Exhibit A to
describe the cofferdam and revise Drawing F-2, Cross
Sections of the Dam, to show the cofferdam.
Exhibit G contains illegible maps. Please provide
legible copies of the exhibit.
Schedule A
SUBJECT DEFICIENT
Project No.2694
COMMENTS
Lists owners of property on which project
is located
VIII. Exhibit H, §16.10 (all applicants)
Plans, abilities to operate and maintain
reliable service i.e.
Increase capacity
Coordinate w/ upstream & downstream
projects
Coordinate w/ electrical systems to min.
costs
Short & long term need by the applic. for
proj. power, i.e.
reasonable costs & avail. of alternative
sources of power if license denied
Cost increases incurred for alternate
power, if license denied
The effect of each alternate source of
power on applicant's customers, load
operating characteristics, & communities
served
Data showing need, cost & avail. of
alternate power sources, i.e.
Annual cost of proj. power, including basis
for calculation
Resources req. by applicant to meet
applicant's capacity & energy needs over
short/tong term; including energy and
capacity resources, a resource analysis, &
Load management measures
For alternate sources of power incl. new
cap. at exist. units, new construction,
off-system power purchases, & load mgmt.
measures - show annual cost of alternative,
basis of cost, discussion of relative merit
of each alternative, effect on direct
provider
Effect of losing power on applicant's own
industrial facilities
If Indian tribe, statement tribe's need for
power
2
Schedule A
SUBJECT
DEFI
Project No.2694
COMMENTS
Impact on applicant's transmission system
of receiving/not receiving license, i.e.
Analysis of effects of redistributing
flows, line losses, new lines, w/costs
Analysis of advantages of applicant's
transmission system in dist. power
Detailed single-Line diagrams
If there are plans to modify, statement of
need to modify prof. & conformance:w/ comp.
plans
If no modify plans, statement of conform-
ity w/ comet. plans
Applicant's financial & personnel resources
to meet obligations under new license
Notification by cert. of land owners, if
expansion
Applicant's electricity consumption
efficiency improvement program w/record of
assisting customers to conserve power &
does program comply w/ regulations
Names/addresses of Indian tribes if prof.
Information to be Drovided applicant who is an existing Licensee
statement of measures by licensee to ensure
safe mgmt, operation, & maintenance of
proj.
w/ descriptions of proj. operation during
flood, any warning devices to ensure
downstream safety, discussion of any
changes that may aff. EAP under Part 12,
exist. or planned structural monitoring
devices, & employee & public safety record
Current operation of proj. and constraints
History of proj. oiler. & maintenance
Discussion of power losses over last 5
years
Licensee's compliance record
Expenses that would be reduced if project
is transferred
Annual fees paid under the FPA
Information to be provided by an applicant who is not an existing licensee
Applicant's plans to manage, operate, and
maintain the project safely w/;
Differences between applicant's plans &
the existing licensee's plans
Measures to implement the exist. EAP
3
Schedule A
SUBJECT DEFICIENT
Applicant's plans to continue safety
monitoring
Applicant's request to licensee to provide
transmission services
Project No.2694
COMMENTS
ADDITIONAL COMMENTS:
SCHEDULE B
Project No. 2694-002
ADDITIONAL INFORMATION
You have 120 days from the date of this letter to provide the following additional
information. When you file this additional information with the Commission, you should
at the same time, serve exact copies of the filings on the agencies that you consulted
during the preparation of the Exhibit E.
In some of the items below, you are asked to provide agency comments. You
should make written requests for the comments, and must allow a minimum of 30 days,
or as otherwise stated, for agency response before filing the information. If the agencies
do not reply, you should provide the Commission with dated copies of the letters of
request.
1. On page 64 of your license application, you note the rule curve for the Queens
Creek reservoir was set by the Tennessee Valley Authority (TVA) in the early 1950s.
Your application includes a proposal to change the reservoir rule curve, by reducing the
extent of winter drawdown. However, you have not documented any consultation with
TVA specific to how your proposed impoundment elevation rule curve would be rectified
with the rule curve set by TVA, primarily for flood control. Therefore, please consult
with TVA and provide documentation of that consultation to include:
(a) a discussion of the effects of your proposed changes in the rule curve on flood
control and other reservoir purposes (e.g., water supply);
(b) TVA's comments on your proposed rule curve elevation for the Queens Creek
impoundment, including potential effects on dam safety; and
(c) if possible, a letter of comment from TVA regarding bounds within which you
may operate or alter the existing Queens Creek reservoir rule curve without further
consulting TVA.
2. On page 78 of your license application you note that flows for the instream
flow study were released through the existing "wye valve" at the base of Queens Creek
dam. Please:
(a) confirm that proposed minimum flows ranging from 0.7 to 4 cfs could be
released through this valve or, if not, provide capital and installation costs for a
new valve capable of handling 0.7 to 4 cfs releases; and
(b) describe how you propose to gage minimum flows from the outlet valve.
3. On pages 54 and 55 of your license application you note that water temperature
and dissolved oxygen studies as well as surveys of fish populations in Queens Creek
reservoir are ongoing through October, 1999. After consultation with the North Carolina
Wildlife Resources Commission (NCWRC) and other agencies consulted in the
preparation of these studies, please:
(a) file a summary of the results of these studies; and
(b) provide comments from the above-stated agencies on your results and how
their comments are addressed.
4. On page 6 of your application, a discrepancy is noted between your calculated
mean annual flow for Queens Creek versus the mean annual flow reported by the
agencies through consultation with the U.S. Geological Survey (USGS). With the project
operating intermittently in a peaking mode, it is unclear how you quantified flow using
operations data and reservoir elevation and storage information. Further, on page 225 of
your application a discrepancy is noted between your calculated 7Q10 flow for Queens
Creek and that provided by the resource agencies through consultation with the USGS. It
is unclear how you calculated a 7Q10 flow for Queens Creek when, as indicated on page
23 of your application, you calculated streamflow only once per week. Therefore, after
consulting with the USGS, NCWRC, North Carolina Divisions of Water Resources and
Water Quality, U.S. Fish and Wildlife Service (FWS), and the U.S. Forest Service,
please:
(a) provide a brief summary of how you quantified Queens Creek flow and provide
comments from the above-stated agencies on your approach; and
(b) summarize your calculations for the 7Q 10 flow for Queens Creek and provide
comments from the above-stated agencies on your input data and calculations and,
if possible, provide the USGS's derivation of the 7Q10 flow for Queens Creek.
5. On page 46 and 47, you provide a summary of lost generation for the Queens
Creek Project based on your proposed minimum flows and those proposed by the
resource agencies. Please provide an overview of your assumptions, calculations, and
values used to determine:
(a) the loss in yearly generation and revenue provided in Table E-6 on page 46 of
your application; and
2
(b) the percentage of weeks with insufficient water to operate, spill, and maintain
the lake elevation provided in Table E-7 on page 47 of your application.
6. In Appendix VII of your license application, you list six federally listed
threatened and endangered (T&E) species known to occur in Macon County, including
the bog turtle (Clemmvs muhlenberp-ii), the spotfin chub (Cyprinella monacha), the
Appalachian elktoe (Alasmidonta raveneliana), Virginia spiraea (SSpiraea `: ? iniana), the
small whorled pogonia (Isotria medeoloides), and the rock gnome lichen (Gymnoderma
lineare). However, you do not provide sufficient evidence, or a supporting statement
from the FWS, to conclude that these or other listed species do not occur in the project
area or would not be adversely affected by project operations. We must evaluate the
potential effects of the project on T&E species prior to a license decisio-..
Therefore, you must consult with the FWS and determine whether the project may
affect any T&E species. If so, please engage a biologist(s) who is knowledgeable in the
identification and biology of these species to survey all areas of potentially suitable
habitat within the project area and adjacent or downstream areas affected by project
operations. You must file the following information:
(a) documentation of consultation with the FWS;
(b) a description of the methods and results of any surveys deemed necessary;
(c) a description of the effects of project operations on T&E species found in the
surveyed areas;
(d) detailed plans to protect T&E species found in the surveyed areas; and
(e) the comments of the FWS regarding your response to this request.
7. In section E.7.3 of your license application, you write that the Queens Creek
Hydroelectric Project i? consistent with the U.S. Forest Service's Nantahala and Pisgah
National Forest Land and Resource Management Plan (1994) and the North Carolina
Statewide Comprehensive Outdoor Recreation Plan (1995); however, no information is
provided on how the project is consistent with the two plans. You also do not address the
project's consistency with the FWS's "Fisheries USA: the recreational fisheries policy of
the U.S. Fish and Wildlife Service," undated, Washington, DC. Please describe how the
Queens Creek Hydroelectric Project is consistent with the three plans.
8. It is not clear which of the recreation facilities identified in section E.7.1,
including a car-top boat launch with parking, day-use area with picnic tables and
3
handicapped-accessible pier(s), will be provided at the two areas listed as impoundment-
access points for boats in Figure E-7 on page 33 of your license application. In section
E.7.1 there is no mention of restroom facilities at impoundment access points, including
toilet facilities accessible -to persons with disabilities. Please provide the following:
(a) the type of recreational and restroom facilities to be provided at each access
area, or for restrooms, reasons why they are not planned; and
(b) a budget, including capital, operating, and maintenance costs, and a
construction schedule for both the existing and proposed recreational facilities,
including restroom facilities.
9. At section E.5.; Cultural Resources, the application states in part, "since no
changes are proposed to the facilities, relicensing will not affect the historic property
located off site at the Nantahala Substation Complex." An historic property that is a
hydropower project, or part of one, can be affected in many different ways during the
term of a 30-year license, including through neglect of the historic property. Therefore,
please consult with the North Carolina Department of Cultural Resources and provide us
descriptions, including appropri ate maps, drawings, photographs, and narrative of:
(a) the characteristics of the historic property located off-site at the Nantahala
Substation Complex that make this historic property eligible for inclusion in the
National Register of Historic Places;
(b) the historic property's location with respect to other project features (e.g.,
project reservoir, dam, powerhouse, and boundary); and
(c) the historic property's project-specific function.
10. To address the potential effects of license denial, please provide:
(a) the probable source or sources of replacement capacity and energy to
Nantahala Power & Light; and
(b) the financial impact to it's customers if replacement power must be obtained
from alternative sources.
11. Please provide a one-line diagram of the project's electrical system, including
a written description of the following:
4
(a) identification of the point at which the primary line begins and terminates and
the type of termination - such as breaker station, substation, and other appurtenant
facilities;
(b) length, voltage, and types (overhead, underground, wood-pole, number of
circuit, etc.) of the primary line; and
(c) transformers - type (bank of 3 single-phased or three-phase), rating in kilovolt-
ampere (WA), and primary and secondary voltages.
12. Safe and efficient project operation throughout an entire license period may
require rehabilitation or replacement of project structures an generation. facilities that
would not be considered routine operation and maintenance activities. In our economic
analysis, we consider the capital costs of known rehabilitation or replacement of project
facilities; therefore please provide the following:
(a) a schedule of known rehabilitation or replacement of project facilities;
(b) a cost estimate of each activity, when the activity is projected to occur (for
example, if your schedule shows that an activity will occur in 2000, provide the
cost estimate in 2000 dollars); and
(c) the present worth (and costs) of the known rehabilitation or replacement of
project facilities in 1999 dollars.
13. For our economic analysis we need to know the remaining undepreciated
and/or unamortized net investment, or book value, for the project as of December 31,
1999. Please provide this information with a concise derivation. The derivation of the
present net investment should show the original cost of the project facilities, plus any
similar cost of additions to and improvements of the project facilities, minus any
accumulated depreciation and amortization. If this information is not available, provide
supplementary information that would reasonably represent the remaining net inves-anent
of the project, or the future carrying charges related to the project investment cost.
14. Also, we need to know the total cost of licensing because, according to the
Commission's Office of the Chief Accountant, the licensing costs are legitimate project
expenses which are capitalized and amortized over the license period. For cost
accounting purposes in licensing existing projects, such costs are equivalent to capital
construction costs for unobstructed projects or expansions of existing projects. The
capitalized licensing costs are part of the costs of generating power.
5

@ A It NANTAHALA
POWER AND LIGHT
a division of Duke Power
January 3, 2001
To: Individuals and organizations interested in Duke Power relicensing
I
JAN 1 9 2001
From: John Wishon, Duke Power-Nantahala Area Relicensing Project Manager, 301 NP&L Loop,
Franklin, NC 28734, 828-369-4604, FAX [phone], [e-mail]
RE: DUKE POWER NANTAHALA AREA HYDRO RELICENSING UPDATE #2: study plan
development
1. Background. Duke Power has finished its internal review of the comments on the First Stage
Consultation Packages for Duke Power's Bryson, Dillsboro, Franklin, Mission, West Fork
Tuckasegee River, East Fork Tuckasegee River and Nantahala hydroelectric projects. The next step
in the relicensing process is to develop detailed study/action plans for the items listed on the attached
Duke Power I' Stage Study-Action List.
Duke Power intends to go beyond existing regulatory requirements to make the studies as
participatory as desired by stakeholders. Realities of completing the studies and incorporating
conclusions within the defined, regulatory schedules mandate some practical limitations however. It's
very important that we finalize the detailed study plans early this Spring (by April 2, 2001) to allow
completion of all the studies in time to incorporate results in the license applications. Please continue
working with us as we complete the necessary studies and incorporate results between now and the
end of 2002.
In December 2000 Nantahala Power & Light transitioned from a division of Duke Energy to
a part of Duke Power identified as Duke Power -.Nantahala Area. This organization change was
made to further prepare the Nantahala Area for electric deregulation, which is now being studied by.
state officials. Therefore, all further references to NP&L hydro projects will reflect this new Duke
identity.
2. Reficensing Open House. On January 12, 2001, Duke Power will host a Relicensing Open House
from 10 am until 2 pm at our office in Franklin. This is a time for stakeholders (Agencies, NGO's,
general public, etc.) to meet with Duke Power Leads to discuss Study Plan development.
A. Role of Duke Power Leads. In plain English, the Duke Power Lead is the assigned
foreman for each study. Duke Power Leads will ensure the study plans are developed and the studies
are conducted as outlined in the Final Study Plans. Duke Power Leads will also ensure that
stakeholder input is considered during drafting of the study plans and following release of any interim
or final study reports. Once the studies are completed, the Duke Power Leads will also ensure that
study conclusions are addressed in the applicable license applications.
B. Come Talk to us at the Open House. The 8 Duke Power Leads will be positioned
around the conference room with supporting materials for their studies. Stakeholders are encouraged
to drop by and get to know the Duke Power Leads, share your ideas for their particular studies and
ask them questions. Comment forms will also be available for stakeholders to submit written
suggestions, and light refreshments will be provided.
-i
C. Additional Input Opportunities. For those that cannot attend the Relicensing Open
House, a comment form will be placed under a hydro relicensing tab on Duke Power's Nantahala
Area website (http:\\www.nantahalapower.com) as a "Virtual Open House". If you do not have
access to the Internet and cannot attend the Open House on the 126i, a notebook with study plan
outlines and drafts and comment forms will be located at the receptionist's desk at our Franklin office
(301 NP&L Loop). Comments received at our office or via the web will be forwarded to the
appropriate Duke Power Lead for his/her consideration.
3. Technical Leadership Teams. Small Technical Leadership Teams (TLTs) will be formed for
most of the studies and will be coordinated by the applicable Duke Power Lead. Members of a TLT
will work closely together as the study plan drafts, interim reports and final reports are completed and
some TLT members may also physically participate in data collection activities. TLT participation
will require a substantial time commitment for each team member and most TLTs will exist for the
duration of the study. Any stakeholder that completes a TLT membership request form and returns it
to the Duke Power Office in Franklin by January 13, 2001 will be considered for TLT participation.
Duke Power Leads will review the request forms and the requesters will be contacted by the end of
the week of January 15, 2001. Since the Duke Power Leads are tagged with the responsibility to
deliver their study plans as noted on the attached Duke Power Study Plan Development Schedule,
they are also given the latitude to determine the make-up of their TLTs. If large numbers of requests
are received for membership on a particular TLT, the Duke Power Lead will select members based on
factors such as statutory authority, directly related technical expertise and ability to help conduct
studies. Stakeholders are asked to limit their requests for TLT membership to studies of the highest
importance to them.
4. Study. Plan Format. The attached Generic Duke Power Study Plan Format will be used for study
plan development and it also describes the levels of stakeholder participation.
We are looking forward to seeing you on January 12, 2001.
2
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Action #: NPL Prerequisite Action #'s: NPL
Action Description:
(From Duke Power lgt Stage Study-Action List)
Applicable Hydro Projects/Developments:
1. Obiective
The study objective should be clearly and concisely defined and tied to specified requirements of license
application and resource management goals.
H. Basis
The basis for a study should be tied to the objective and potential hydro project effects. The basis is the
justification statement for why it's necessary to conduct the study in the hydro licensing process. If the
study is being done to gather basic information required by the Code of Federal Regulations (CFR) to be
included in a hydro licensing application, then the specific CFR sub-sections should be identified. (Note:
18CFR4.61 provides the requirements for completing a license application for hydro projects less than 5
MW ---- Bryson, Dillsboro, Franklin and Mission. 18CFR4.51 provides the applicable requirements for
all other Duke Power-Nantahala Area hydro projects). If the study is being done to address a problem that
is related to the hydro project or its operation, then enough information should be included to clearly
show that a problem does exist and to show how that problem relates to the hydro project or its operation.
M. Geographic and Temporal Scope
The study area should be delineated and should be the potential area of effect. It should be focused on the
area primarily affected but not necessarily limited to the project boundary. The temporal scope should
consider the period for which the new license will apply.
IV. Approach and Analysis
The study plan should describe the approach in sufficient detail to enable the participants to understand
the methodology, equipment to be used, sampling locations, sampling frequency, etc. Sampling protocols
should be included as appropriate along with accuracy requirements. The study plan detail should be
commensurate with the importance of the issue and level of impact. Impacts may be direct, indirect, and
cumulative. The level of analysis should be dependent upon the degree of effect. Qualitative or
quantitative studies should be identified.
V. Schedules and Required Conditions
Schedules and necessary operational, environmental or other preparatory conditions for conducting the
study should be identified. Time lines for field measurements, report preparations, and participant review
should also be identified. Particular consideration needs to be given for completion of any prerequisite
studies and also ensuring that the study results can be finalized in sufficient time to include the results in
Duke Power Draft Study Plan Fozmat.doc Page 1 of 3 Rev Date: 01102101
the FERC license application. The suggested Years of Activity from Duke Power's Study Plan List
should be used as the starting point for determining study scheduling.
VI. Results
It is important to forecast how the results are expected to be used to make management decisions
regarding protection, mitigation and enhancement measures, NEPA alternatives development or
mandatory conditions.
VII. Participants
Organization Name Phone # E-Mail
Duke Power Lead
Agency Contacts
Duke Power
Supporting Consultant
Other Participants

The Duke Power Lead is the individual primarily responsible to ensure the study plan is developed and
conducted as agreed upon and that study conclusions are addressed in the applicable license applications.
The Duke Power Lead is also primarily responsible for ensuring input from the Agency Lead and Other
Participants, for giving direction to the Supporting Consultant and for resolving any disputes (with help as
needed from the Duke Power-Nantahala Area Licensing Project Manager). The Duke Power Lead is also
responsible to ensure the study plan, interim progress reports and draft results/conclusions are made
available to all licensing stakeholders through mechanisms that will be established by the Duke Power
Licensing Project Team.
The Agency Contacts are the individuals responsible for coordinating input and participation from their
federaUstate/local resource agency that has statutory authority relative to the specific issues being studied
at the specified hydro projects/developments.
The Supporting Consultant is the individual representing any consulting or contracting company that
Duke Power may need to hire to help with the study. Duke Power welcomes input from agencies and
other participants concerning consultant qualifications and previous experiences. However, Duke Power
reserves final decision-making authority on all aspects of consultant selection, contracting, etc. whenever
Duke Power is absorbing the cost of the services.
Other Participants may include any other licensing stakeholder that has a particular and defined interest in
the subject study at the specified hydro projects/developments and can add substantially to the study plan
development process or to achieving buy-in for study results.
Duke Power intends to make the studies as participatory as desired by stakeholders. Realities of
completing the studies and incorporating conclusions within the defined, regulatory schedules mandate
some practical limitations however. A small Technical Leadership Team (TLT) will be formed for each
study with the Duke Power Lead as its chairperson. TLT participation requires a substantial time
commitment from each team member and most TLTs will stay in place for the duration of the study.
Stakeholders (both public and private, agency and non-agency) are asked to limit their participation on
Technical Leadership Teams to those studies that are of highest importance to them. The Duke Power
Licensing Project Team will develop a mechanism to ensure study plans, interim progress reports and
draft study conclusions are made available to all interested stakeholders to afford meaningful input
opportunities prior to incorporation into the license application.
Duke Power Draft Study Plan Format. doc Page 2 of 3 Rev Date: 01102101
VIII. Expected Study Cost
Year Duke Power Labor Duke Power Other Duke Power Total Duke Power
Cost $ Consultant Cost $ Non-Labor Cost $ Cost $
2001
2002
IX. Expected Benefits
The study plan should describe the benefits that are expected from conducting the study. Benefits will
typically include protection, mitigation or enhancement of the hydro project's environmental, public
recreational, cultural or electric generation resource values.
X. List of Attachments
XL List of References
Duke Power Draft Study Plan Format. doc Page 3 of 3 Rev Date: 01102101
Duke Power-Nantahala Area 1 st Stage Study-Action List
PROJECT YEARS O F ACTIVITY'
Thorpe` Tuckaseegee Cedar Bear Wolf
ACTION Duke Power Lead Nantahala (Glenville- (L. Glenville- Cliff Creek Tennessee Creek Bryson Dlllsboro Franklin Mission
NUMBER ACTION DESCRIPTION Duke Power Lggd Phpne No. (2682) 2686) 2686) (2698) (2698) Creek, 2668) (2688) (2601) (2602) (2603( (2619) 2001 2002

Assess the current visual conditions of the project
NPLAES1 facilities and their operations. Jennifer Huff 704378.4392 + + + + + X
Conduct a Phase I archeological survey of the lake's
shoreline, including assessing impacts of shoreline
erosion and assessing potential for sites in flood
pool and plans for future surveys during
NPLCULT1 drawdowns. Jennifer Huff 704373.4392 + + + + + X
Evaluate National Historic Register eligibility for
NPLCULT2 project structures. Jennifer Huff 704373.4392 + + + + + + + + + + + X
Develop a cultural resources management plan for
projects with significant archeological and National
NPLCULT3 Historic Register Sites. Jennifer Huff 704373.4392 + + + X
Fish passage feasibility study - Phase 1:
determination of need for fish passage, Phase 2:
determination of feasibility of fish passage relative to
cost/benefit, at any stations with a substantiated
NPLFPASS1 need from Phase 1. Duane Harrell 7048755453 + + + + + + + + + + + X
Inventory, classify and map riparian habitat in the
NPLGWB1 project boundary. Duane Harrell 7048755453 + + + + + + + + + + + X
Characterize fishery and aquatic invertebrate
community upstream and downstream of dam, in
NPLGWB2 the reservoir and in applicable bypasses. Duane Harrell 7048755453 + + + + + + + + + + + X
Determine if any shoreline management policy
changes are needed to adequately protect riparian
wildlife corridors, focusing on undeveloped
NPLGWB3 shoreline only. Joe Hall 704382-8576 + + + + + X
Rerun IFIM analysis using existing physical habitat
models and additional preference curves (i.e.,
NPLFLOWF1 mottled scut in and macroinvertebrates). Duane Harrell 7048755453 + + + + + + + X
Conduct new streamflow studies in three specific
reaches (Tennessee Creek bypass, downstream of
Nantahala Powerhouse, and West Fork
NPLFLOWF2 Tuckas ee River below Little Glenville Dam). Duane Harrell 704.8755453 + + + + + + + X X
Conduct a mussel survey upstream and
NPLFLOWF3 downstream of the pro ect dam. Duane Harrell 7048755453 + + + X X
Conduct recreational nstream flow study at the
Nantahala River bypass between White Oak Creek
confluence and powerhouse, in East Fork
Tuckasegee River below Cedar Cliff Powerhouse, in
West Fork Tuckasegee River below Tuckasegee
Powerhouse, and the Tuckasegee River below
NPLFLOWR1 Dillsboro. Chuck Borawa 704382-8587 + + X
Conduct survey of shoreline habitat to determine
NPLLLM1 impacts, if any, of drawdowns on aquatic habitats. Duane Harrell 7048755453 + + + + + + X
Determine method to inform public/lake
homeowners of changing lake levels at Lake
NPLLLM2 Glenville. Fred Alexander 828369.4543 + X
Propose revised rule curves for Nantahala and
Glenville Reservoirs and maintain current minimal
NPLLLM3 fluctuations on East Fork Projects. John WLchon 828-369.4604 + + + + + + + X
Conduct a study to determine zone of peaking
NPLOOP1 influence. Ed Bruce 704382.5239 + + + X
Determine current flow regime in bypass, including
NPLOOP2 high, low, 7010, mean and median flows. John Wishon 828369-4604 + + + + + X
Determine any changes needed to maintain and
comply with run-of-river operation, especially during
NPLOOP3 low flow conditions. Gary Morgan 828.369.4561 + + + + X
Revised 113101
Duke Power-Nantahala Area 1st Stage Study-Action List
Pi2OJECT' - YEAR(S) O F ACTIVITY'
Thorpe Tuckaseee Cedar Bear Wolf
ACTION Duke Power Lead `Nardahala (Glenville, '(L. Qlenv1lie• Cliff . Creek Tennessee Creek Bryson Dlilaboro Franklin Mission
NUMBER..: ACTION` DESCRIPTION D,U,IceP4w@rLo
_ad
PJ?o,
(2( 1
$?) `
2)
(?I)
(1
Creek,! e)
(2698)

)
I2.01

0602)

(

(2618)

2001

24p2

Develop a system to provide information to the
public disclosing instream flows and generation
NPL00P4 schedules for Tucka ee sub-basin. Fred Alexander 828369.4543 + + + + + + + X
Provide basic project and resource information per
attachments A (Project Information Form) and B
(Resource Information Checklist) of NCWRC's
letter requesting generic information for all Duke
NPLOTHI Power projects, Nantahala Area. John Wishon 828-3694604 + + + + + + + + + + + X
Develop Trash Removal Plan for general litter and
NPL0TH2 trashrack debris. Gary Morgan 828365.4561 + + + + X
Establish Internet site to provide public with
NPL0TH3 relioensin information. Fred Alexander 828.369.4543 + + + + + + + + + + + X
Review present record of energy conservation
measures and alternatives for new conservation
NPL0TH4 programs. Fred Alexander 828.369.4543 + + + + + + + + + + + X
Rename Lake Thorpe: Change all references to
NPL0TH6 reservoir to lake Glenville. Fred Alexander 828369.4543 + X
Develop economic information to describe relative
revenue impacts to the generating assets of various
NPL0TH6 operating schemes. Ed Bruce 7043825239 + + + + + + X
Develop a GIB-based mapping system to support
cataloging and data presentation and analysis for
NPL0TH7 several other studies. Jennifer Huff 704373.4392 + + + + + + + + + + + X
Conduct fish and wildlife PETS surveys upstream,
in reservoir, downstream, and on project lands and
NPLPETSI determine project effects, if any, on those species. Duane Harrell 704.875.5453 + + + + + + + + + + + X X
Conduct inventories of all PETS and FS Concern
plant species that could be affected by the project.
Have specialist identify and evaluate rare
NPLPETS2 bryophytes. Duane Harrell 704375.5453 + + + + + X X
Evaluate wetlands and floodplains as potential
habitat for bog turtles, blue-winged warblers, longtail
salamanders and other species of concern.
Inventory wetlands and floodplains as appropriate to
NPLPETS3 determine the current status of thesespecies. Duane Harrell 704.875.5453 + + + + + + + + + + + X X
Conduct a recreation needs study to determine
present and projected future recreational demand
NPLREC1 and an additional public access needs. Chuck Borawa 704382.8587 + + + + + + + + + + + X X
Evaluate the effect of varying water release levels
and schedules on recreational uses both on the
NPLREC2 reservoirs and downstream of the reservoirs. Chuck Borawa 704382.8587 + + + + + + X X
Determine Impact of peaking flow on Angling
NPLREC3 Opportunities. Duane Harrell 704.8755453 + + + + X
Provide project-related data for recreational
NPLREC4 opportunity determination. Chuck Borawa 704-382.8587 + + + + + + + + + + + X
Evaluate ability to provide weekend recreational flow
NPLREC6 releases during higher flow periods. Chuck Borawa 704382.8587 + + + X
Development a sediment management plan to
include rate of sediment accumulation in reservoir,
project effects on bed-load transport and
NPLSEDI determination of downstream bank stability. Duane Harrell 704-875.5453 + + + + + + + + + + + X
Monitor and characterize Water Temperature and
Dissolved Oxygen above and within reservoir,
NPLWQI tailrace, and downstream. Duane Harrell 7048755453 + + + + + + + + + + + X
Inventory point source discharges upstream,
NPLWQ2 downstream and within project waters. Duane Harrell 704-8755453 + + + + + + + + + + + X
Revised 113101
State of North Carolina
Department of Environment
and Natural Resources
Division of Water Quality
James B. Hunt, Jr., Governor
Bill Holman, Secretary
Kerr T. Stevens, Director
T mm'MMA •
mom
NCDENR
NORTH CAROLINA DEPARTMENT. OF
ENVIRONMENT AND NATURAL RESOURCES
December 17, 1999
Mr. John L. Boaze, Senior Biologist
Fish and Wildlife Associates, Inc.
Post Office box 241
Whittier, North Carolina 28789
Re: Queen's Order Hydroelectric Plant relicensing
DWQ #: 991055
FERC Project #: 2694
Macon County
Thank you for your 13 December 1999 letter concerning information in our 401 Water Quality Certification
files for this project. You asked three questions in your letter and these are addressed below.
1) Environmental Assessment Requirement: Based on recent discussions with the North Carolina Attorney
General's staff mainly revolving around a contested case for the Randleman Project, our understanding of
this requirement has changed. It is clear that environmental documents prepared under the State
Environmental Policy Act (SEPA) preclude the issuance of 401 Water Quality Certifications until final
approval of the document. However it appears that documents prepared for the National Environmental
Policy Act (NEPA) do not trigger this rule and thereby do not necessarily preclude issuance of a 401
Water Quality Certification. Therefore we now believe that we can issue a 401 water Quality
Certification when a NEPA document is required. I apologize for the confusion this issue raised last fall.
This recent legal interpretation occurred after that time.
2) Public Hearin: Indeed you did request a hearing in your 24 September 1999 letter. However no water
quality related reasons were expressed in this letter and therefore DWQ staff do not believe a hearing for
the 401 Certification is warranted.
However if you submit specific water quality related reasons in support of a hearing, I will be glad to
discuss the matter of a hearing with DWQ decision makers. If a decision is made (based on this new
information) to have a hearing, we would then withdraw Certification 3244 until the hearing is held.
3) Minutes for Meeting of 18 August 1999: We are not aware that DWQ staff attended that meeting.
Perhaps Mr. Fred Tarver, DWR could provide meeting minutes and a list of attendees.
Please call me at 919-733-9646 if you have any questions.
Si ce
Joh R. Domey
Cc: Fred Tarver, DWR
Mike Parker, Asheville DWQ Regional Office
Frank McBride, WRC
Central Files
File copy
Secretary, FERC
Wetlands/401 Unit 4401 Reedy Creek Road Raleigh, North Carolina 27607
Telephone [phone] FAX # [phone]
An Equal Opportunity Affirmative Action Employer 50% recycled/10% post consumer paper
Fish and Wildlife Associates, Inc.
P.O. Box 241
Whittier, NC 28789
[phone]
December 13, 1999
. 0FC
Mr. John Dorney 6
N.C. Department of Environment, Health, and Natural Resources
Division of Environmental Management
4401 Reedy Creek Road
Raleigh, NC 27607
Re: Section 401 Certification
Proposed Relicensing of Queens Creek Hydroelectric Plant
DWQ Project #991055
FERC Project # 2694
Macon County
Dear Mr. Dorney:
Thank you for the copies of the above referenced file that your staff provided to me. However, I
reviewing the file, I was unable to locate the Environmental Assessment that was needed before
the 401 certification of November 16, 1999 (No. 3244) was issued. As you recall, we had to
withdraw our application of October 1, 1998 for this certification because you had notified us that
unless we withdrew the application by October 1, 1999, the certification would be denied.
There was a reference to a meeting (see the attached letter of 9-24-99) between Mr. Todd St.
John and yourself with regard to the Nantahala Power and Light request for a public hearing to
solicit public input on this permit. However, I could not locate neither a written record of this
meeting nor any explanation as to why this request for a public meeting was not addressed by
your office.
Also, a copy of a FAX dated 8-5-99 to your staff from Fred Tarver indicated that a meeting on
this subject was to be held on 8-19-99. However, there was no record of neither this meeting,
persons in attendance, nor the content of the meeting.
I would appreciate clarification of these points. If you have any questions, please contact me.
Sincerely,
la e, 'Y J'
John L. Boaze,
Sr. Biologist
cc: Richard Conley, Coordinator, NP&L Hydro Regulatory Affairs
.:. NANTAHALA 5
?-?
POWER AND LIGHT
1 6'L
September 24, 1999
Mr. John Dorney
N. C. Division of Water Quality
Non-Discharge Branch
1621 Mail Service Center
Raleigh, North Carolina 27669-1621
RE: Public Notice for Water Quality Certification of Queens Creek Hydroelectric Project
Dear Mr. Dorney:
Nantahala Power and Light has reviewed the draft 401 water quality certification for
Queens Creek reservoir and would like to go on record as being opposed to the releases
requested in Condition 4. During the negotiation process between Nantahala Power and
Light and the resource agencies, NP&L performed an analysis of the impacts resulting
from the proposed release. This release represents a 39% loss of generation annually and
could ultimately result in shutting down the Queens Creek project. The loss of
generation will, necessitate the purchasing of replacement power which will probably be
generated from a non renewable source of energy. Purchase of power from an external
service source will result in an increase in rates to Nantahala's customers.
Due to the potential adverse impacts to area recreation and in the interest of Nantahala's
59,000 rate payers, we would like to request that a public hearing be held to solicit
comments from all interested parties in the Nantahala service area.
Enclosed you will find a summary of the negotiations amongst Nantahala Power and
Light, the resource aaenc:es, --nd other interested parties.
Sincerely,
Thomas D. Smitherman
Vice President - Production,
Transmission and Distribution
TDS/ckb
Enclosure
State of North Carolina
Department of Environment
and Natural Resources
Division of Water Resources
James B. Hunt, Jr., Govemor
Wayne McDevitt, Secretary
John N Morris, Director
l
ACDENR
Nonni CAROLINA DMARTM[NY or
\ ENmRONMENT Aso N,c URAL RESOURCES
FAX TRANSMISSION
TO:
FAX NUMBER:
FROM:
- 7ilol? ?. ,
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FAX NUMBERS: [phone] or [phone]
Total Number of Pages Seat Including This Cover Sheet: :2.
If you do not receive all pages or if the transmission is not legible, please call [phone].
MESSAGE:
\ L Cam;?E? S CV-ZE U c { I CFL-T-t
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12/13/1999 15:50 8284976213 FISH & WILDLIFE PAGE 01
Fish and Wildlife Associates, Inc.
P.O. Box 241
Whittier, NC 28789
[phone]
December 13,1999
Mr. John Domey
N.C. Department of Environment, Health, and Natural Resources
Division of Environmental Management
4401 Reedy Creek Road 1
Raleigh, NC 27607
Re: Section 401 Certification
Proposed Relicensing of Queens Creek Hydroelectric Plant
DWQ project #991055
FERC Project # 2694
Macon County
Dear Mr. Dorney:

"lb„ `
Co4
Thank you for the copies of the above referenced file that your staff provided to me. However, I
reviewing the file, I was unable to locate the Environmental Assessment that was needed before
the 401 certification ofNovember 16, 1999 (No. 3244) was issued. As you recall, we had to
withdraw our application of October 1, 1998 for this certification because you had notified us that
unless we withdrew the application by October 1, 1999, the certification would be denied.
There was a reference to a meeting (see the attached Letter of 9-24-99) between Mr. Todd St.
Johns and yourself with regard to the Nantahala Power and bight request for a public hearing to
solicit public input on this permit. However, I could not locate neither a written record of this
meeting nor any explanation as to why this request for a public meeting was not addressed by
your office.
Also, a copy of a FAX dated 8-5-99 to your staff fron
this subject was to be held on 8-19-99. However, the
persons in attendance, nor the content of the meeting.
ever indicated that a meeting on
record of neither this meeting,
I would appreciate clarification, of these points. If you have any
SJohn L. Boaze,
Sr. Biologist
91,
please contact me.
tp
y?
e ?
cc: Richard Conley, Coordinator, Np&L Hydro Regulatory Affairs
12/13/1999 15:50 8284976213
State of North Carolina
Department of Environment
and Natural Resources
Division of Water Resources
James S. Hunt, Jr., Governor
Wayne McDevitt, Secretary
John N Morris, Director
FISH & WILDLIFE
j?
FAX TRANSMISSION
PAGE 02
TO:a? o lazAel
l.?rJ?S C'?
FAX NUMBER:
.rr?rr?r r
FROM:
FAX NUMBERS: [phone] or [phone]
Total Number of Pales Scent Wadi ft Tbb Cover Sheet: -2.-
If you do not roodve all pages or if the Ui=Wssion is not legNe, plow calf [phone].
MESSAGE: .
OJ L , fe-?)GZAS Cl?zc v-- M'Pzo '1- . 44D l C ..fi`r'
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. 12/13/1999 15:50 8284976213 FISH & WILDLIFE PAGE 03
0 NANTAHALA
POWER AND LIGHT
September 24, 1999
Mr. John Dorney
N. C. Division of Water Quality
Non-Discharge Branch
1621 Mail Service Center
Raleigh, North Carolina 27669-1621
RE: Public Notice for Water Quality Certification of Queens Creek Hydroelectric Project
Dear Mr. Dorney:
Nantahala Power and Light has reviewed the draft 401 water quality certification for
Queens Creek reservoir and would like to go on record as being opposed to the releases
requested in Condition 4. During the negotiation process between Nantahala Power and
Light and the resource agencies, NP&L performed an analysis of the impacts resulting
from the proposed release. This release represents a 39% loss of generation annually and
could ultimately result in shutting down the Queens Creek project. The loss of
generation will, necessitate the purchasing of replacement power which will probably be
generated from a non renewable source of energy. Purchase of power from an external
service source will result in an increase in rates to Nantahala's customers.
Due to the potential adverse impacts to area recreation and in the interest of Nantahala's !
59,000 rate payers, we would like to request that a public hearing be held to solicit
comments from all interested parties in the Nazttahala service area.
Enclosed you will find a summary of the negotiations amongst Nantahala Power and
Light, the resource agencies, and other interested parties.
Sincerely,

Thomas D. Smitherman
Vice President - Production,
Transmission and Distribution
TDS/ckb
Enclosure
'/24/1999 15:57 8284976213
FISH & WILDLIFE PAGE 01
Fish and Wildlife Associates, Inc.
P.O. Box 241
Whittier, NC 28789
[phone]
November 24, 1999
Mr. John T. Dorney, Director
Water Quality Certification Program
NC DENR
4401 Reedy Creek Rd.
Raleigh, NC 27607
Re: Section 401 Certification
Proposed Relicensing of Queens Creek Hydroelectric Plant
DWQ Project #991055
FERC Project # 2694
Macon County
Dear Mr. Dorney:

On behalf of Nantahala Power and Light, please provide me with copies of all correspondence,
including reports, memos, letters, etc. relating to the above referenced Section 401 Certification.
If there is a charge for this service, please bill me.
Sincerely,
A-1W
John L. Boaze,
Sr. Biologist
cc: Richard Conley, Coordinator, Hydro Regulatory Affairs
P. 01
TRANSACTION REPORT
NOV-24-1999 WED 02:50 PM ?K
?K RECEIVE
DATE START SENDER RX TIME PAGES TYPE NOTE M# DP
NOV-24 02:49 PM 8284976213 59" 1 RECEIVE COME-5
Fish and Wildlife Associates, Inc.
P.O.Box241
Whittier, NC 28789
[phone]-
November 24, 1999
Mr. John T. Dorney, Director
Water Quality Certification Program
NC DENR
4401 Reedy Creek Rd.
Raleigh, NC 27607
Re: Section 401 Certification
Proposed Relicensing of Queens Creek Hydroelectric Plant
DWQ Project #991055
FERC Project # 2694
Macon County
Dear Mr. Dorney:
3
lI. 1

On behalf of Nantahala Power and Light, please provide me with copies of all correspondence,
including reports, memos, letters, etc. relating to the above referenced Section 401 Certification.
If there is a charge for this service, please bill me.
Sincerely,
4?//? e" eov,
John L. Boaze,
Sr. Biologist

cc: Richard Conley, Coordinator, Hydro Regulatory Affairs
State of North Carolina
Department of Environment
and Natural Resources
Division of Water Quality
James B. Hunt, Jr., Governor
Bill Holman, Secretary
Kerr T. Stevens, Director
1 ? •
NCDENR
NORTH CAROLINA DEPARTMENT OF
ENVIRONMENT AND NATURAL RESOURCES
r
November 16, 1999
Mr. Tom Smitherman
Nantahula Power and Light Company
301 NP&L Loop Road
Franklin, North Carolina 28734
Re: Certification Pursuant to Section 401 of the Federal Clean Water Act
Proposed Relicensing of Queen's Creek Hydroelectric Plant
DWQ Project #: 991055
FERC Project #: 2694
Macon County
Attached hereto is a copy of Certification No. 3244 issued to the Nantahula Power and Light Company
dated November 16, 1999.
If we can be of further assistance, do not hesitate to contact us.
Rrell
.. " r
scc: Asheville DWQ Regional Office
Mr. John Dorney
Fred Tarter, DWR
Frank McBride, WRC
John Boa, Fish and Wildlife Associates
Ted Bisterfield, US EPA
Secretary, FERC
Central Files
Wetlands/401 Unit 4401 Reedy Creek Road Raleigh, North Carolina 27607
Telephone [phone] FAX # [phone]
An Equal Opportunity Affirmative Action Employer 50% recycled/10% post consumer paper
r
NORTH CAROLINA 401 WATER QUALITY CERTIFICATION
THIS CERTIFICATION is issued in conformity with the requirements of Section 401
Public Laws 92-500 and 95-217 of the United States and subject to the North Carolina Division
of Water Quality (DWQ) Regulations in 15 NCAC 2H, Section .0500. It is issued to Nantahula
Power and light Company in Macon County pursuant to an application filed on the In day of
October 1999 to relicense the Queens Creek hydroelectric project.
The application provides adequate assurance thatxhe discharge of fill material into the
waters of Queens Creek in conjunction with the proposed development will not result in a
violation of applicable Water Quality Standards and discharge guidelines. Therefore, the State
of North Carolina certifies that this activity will not violate the applicable portions of Sections
301, 302, 303, 306, 307 of PL 92-500 and PL 95-217 if conducted in accordance with the
application and conditions hereinafter set forth.
This approval is only valid for the purpose and design that you submitted in your
application, as described in the Public Notice. If you change your project, you must notify us
and send us a new application for a new certification. If the property is sold, the new owner must
be given a copy of the Certification and approval letter and is thereby responsible for complying
with all conditions. If total wetland fills for this project (now or in the future exceed one acre,
compensatory mitigation may be required as described in 15A NCAC 2H.0506 (h) (6) and (7).
For this approval to be valid, you must follow the conditions listed below. In addition, you
should get any other federal, state or local permits before you go ahead with your project
including (but not limited to) Sediment and Erosion control, Coastal Stormwater, Non-discharge
and Water Supply watershed regulations.
Condition(s) of Certification:
1. Appropriate sediment and erosion control practices which equal or exceed those
outlined in the most recent version of two manuals. Either the "North Carolina
Sediment and Erosion Control Planning and Design Manual" or the "North Carolina
Surface Mining Manual" (available from the Division of Land Resources in the
DEHNR Regional or Central Offices). The control practices shall be utilized to prevent
exceedances of the appropriate turbidity water quality standard (50 NTUs in all fresh
water streams and rivers not designated as trout waters; 25 NTUs in all lakes and
reservoirs, and all saltwater classes; and 10 NTUs in trout waters);
2. All sediment and erosion control measures placed in wetlands or waters shall be
removed and the natural grade restored after the Division of Land Resources has
released the project;
3. Measures shall be taken to prevent live or fresh concrete from coming into contact with
waters of the state until the concrete has hardened;
4. Minimal flows shall be released from the dam as follows in order to protect downstream
aquatic life: January-3.5 cfs; February to May-4.0 cfs; June-3.5 cfs; July-3.0 cfs;
August-2.5 cfs; September and October-2.0 cfs; November-2.5 cfs and December -3.5
cfs.
r
Violations of any condition herein set forth shall result in revocation of this Certification
and may result in criminal and/or civil penalties.. This Certification shall become null and void
unless the above conditions are made conditions of the Federal 404 and/or coastal Area
Management Act Permit. This Certification shall expire upon expiration of the 404 or CAMA
permit.
If this Certification is unacceptable to you have the right to an adjudicatory hearing upon
written request within sixty (60) days following receipt of this Certification. This request must
be in the form of a written petition conforming to Chapter 150B of the North Carolina General
Statutes and filed with the Office of Administrative Hearings, P.O. Box 27447, Raleigh, N.C.
27611-7447. If modifications are made to an origin4 Certification, you have the right to an
adjudicatory hearing on the modifications upon written request within sixty (60) days following
receipt of the Certification. Unless such demands are made, this Certification shall be final and
binding.
This the 16`h day of November 1999
DIVISION OF WATER QUALITY
Steve
WQC#: 3244
ing List - NP&L Queens Creek Meeting
Mr. John Ellis
U.S. Fish and Wildlife Service
Raleigh Field Office
P.O. Box 33726
Raleigh, NC 27636-3726
Mr. Franklin T. McBride, Manager
Program.
,Habitat Conservation Wildlife Resources
NC, Commission
NC
512 N. Salisbury Street
Raleigh., NC 27604-1188
Mr. Chris Goudreau
NC Wildlife Resources Commission
320 South Garden Street
Marion, NC 28752
Mr. Mark Davis
Habitat Conservation Program
NC Wildlife Resources Commission
20830 Great Smoky Mtn. Expressway
Waynesville, NC 28786
Mr. Fred Tarver Branch
Aquatic Ecology
NC Division of Water Resources
P.O. Box 27687
Raleigh, `-C / 611-7687
Mr. Ted Blisterfield
USED A, Region 4
office of Environmental
Center Assessment
AtlantaFederal S.W.
100 Alabama Street,
Atlanta, GA 3 03 03 104
Mr. Michael L. Wilkins
District Ranger, USFS
Wayah Ranger District
sioan Road
'Franklin, NC 29734
Federal Energy Regulatory commission
office of the Secretary
Dockets - Room lA
888 First StreDC 20426
Washington,
Dr. Gary Duven, Director
Wesser Institute of Ecology
P,O. BoxN177
C 28708
Almond,
Donley Dill
US Forest Service
P.O. Box 2750
Asheville, NC 28802
Mr. Steve Reed
Dept. Of Environmental and Natural
Resources
P.O. BoxNC 27687
27611
Raleigh,
Mr. Jim Mead
Dept. of Environmental and Natural
Resources
P.O. BOX NC 27611
Raleigh,
Mr. Scott Lois commission
NC Wildlife Resource at'ns Expressway
208;0 Great Smoky
Waynesville, NC 28786
Bobby Queen
p .O. Box 1042 2g901
Andrews, NC
Karen McKay Stairs Road
3801 winding
Andrews, NC 28901
Mr. Tim Blose 223
NC DENR
Division of Water Street
512 N. Salisbury
NC 27604
Fish and Wildlife Associates, Inc.
P.O. Box 241
Whittier, NC 28789
[phone]
September 30, 1999
Mr. John Dorney
N.C. Department of Environment, Health, and Natural Resources
Division of Environmental Management
4401 Reedy Creek Road
Raleigh, NC 27607
Dear Mr. Dorney:

rn it

I have enclosed a completed Pre-construction Notification Form (PCN) as part of the Federal
Energy Regulatory Commission's (FERC) relicensing process for the Queens Creek Project
operated by Nantahala Power & Light.
The effective date of the original (minor) license was May 1, 1965 and the expiration of this
license is effective October 20, 2001. On February 28, 1997, a First Stage Consultation package
was completed and distributed for review from the pertinent agencies. In July 1998, a Draft
License Application was distributed for review. On September 27, 1999, the License Application
was submitted to FERC and distributed to all interested parties. The original application for the
401 Certification was filed on October 1, 1998. However, as advised by your office, it has been
withdrawn as of September 30, 1999 due to the need for an Environmental Assessment (EA).
This document will be prepared by the FERC at a later date.
I have enclosed seven (7) copies of the PCN which you said you would distribute to the
appropriate departments within the state. Also enclosed is the $475 application fee.
If you should need any further information, please contact me at your convenience.
Sincerely,
is c?
11 , PLC, r " ,
John L. Boaze
Senior Biologist
cc: Attached List
Mr. John Hefner
U.S. Fish and Wildlife Service
Raleigh Field Office
P.O. Box 33726
Raleigh, NC 27636-3726
Asheville Regulatory Field Office
U.S. Army Corps of Engineers
151 Patton Avenue
Room 143
Asheville, NC 28801-5006
Mr. Brian Cole
U.S. Fish and Wildlife Service
Asheville Field Office
160 Zillicoa Street
Asheville, NC 28801
Mr. John Dorney
NC DENR
Division of Environmental Management
4401 Reedy Creek Road
Raleigh, NC 27607
NANTAHALA
POWER AND LIGHT
October 11, 1999

Mr. David P. Boegers, Secretary
FEDERAL ENERGY REGULATORY COMMISSION
Dockets Room A
888 First Street, NE
Washington, D.C. 20426
RE: 401 Certification for Licensing of the Queens Creek Project No.2694 (NATDAM
No. NC00333)
Dear Secretary Boegers,
On September 27, 1999, Nantahala Power and Light filed with the commission an
application for the licensing of the Queens Creek Project No. 2694. As part of the
licensing application, Nantahala included their application to the State of North Carolina
for the required 401 Water Quality Certification.
Also, on September 27, 1999, Fish and Wildlife Associates (Nantahala's licensing
consultant) received a call from the North Carolina Department of Environment and
Natural Resources, Water Quality Section, stating that an environmental assessment
would be necessary before they could issue the 401 Certification. Since some action had
to be taken no later than October 01,1999, it was suggested that Nantahala withdraw their
application, otherwise the State would have no choice but to deny the 401 Certification.
This occurred three days after Nantahala filed their comments on a Draft Certification as
issued by the NCDENR on September 3, 1999. A copy of the Draft Certification and
Nantahala's comments are attached.
Although it appears that requiring an environmental assessment prior to issuing a 401
Certification is unusual, the State chose to do so in this case. However, through
conversations with NCDENR personnel, it is not clear if the State is responsible for
compiling an EA, or if it will be necessary to wait for the FERC to complete theirs before
the 401 Certification can be issued.
In order not to be in default on our licensing application to the FERC, we felt that the
only reasonable solution to the problem would be to withdraw the 401 application and
immediately refile. By letter dated September 30, 1999 Nantahala formally withdrew
the 401 application, which was part of the FERC licensing application. In addition on
September 30, Nantahala formally applied for a new 401 Certification for the

October 11, 1999
Mr. David P Boegers
Page 2
Queens Creek project. Copies of both the withdrawal and the new application letters are
attached.
Nantahala respectfully requests that the license application for the Queens Creek Project
No 2694 (NC003333), filed with the Commission on September 27, 1999, be amended to
show the current status of the 401 Certification for that project.
If you have any questions regarding this matter or if I can be of further assistance, please
feel free to contact me at any time.
Sincerely,

Thomas D. Smitherman
Vice President,
Production, Transmission and Distribution
Attachments
cc: Mr. Richard Conley
Mr. John Boaze
Mr. John Dorney
Fish and Wildlife Associates, Inc.
Mr. John Dorney
P.O. Box 241
Whittier, NC 28789
[phone]
September 30, 1999
N.C. Department of Environment, Health, and Natural Res
Division of Environmental Management
4401 Reedy Creek Road.
Raleigh, NC 27607f,`
Dear Mr. Dorney:

66r
-1190
I have enclosed a completed Pre-construction Notification Form (PC" ar & the Federal
Energy Regulatory Commission's (FERC) relicensing process for the Quee reek Project
operated by Nantahala Power & Light.
The effective date of the original (minor) license was May 1, 1965 and the expiration of this
license is effective October 20, 2001. On February 28, 1997, a First Stage Consultation package
was completed and distributed for review from the pertinent agencies. In July 1998, a Draft
License Application was distributed for review. On September 27, 1999, the License Application
was submitted to FERC and distributed to all interested parties. The original application for the
401 Certification was filed on October 1, 1998. However, as advised by your office, it has been
withdrawn as of September 30, 1999 due to the need for an Environmental Assessment (EA).
This document will be prepared by the FERC at a later date.
I have enclosed seven (7) copies of the PCN which you said you would distribute to the
appropriate departments within the state. Also enclosed is the $475 application fee.
If you should need any further information, please contact me at your convenience.
Sincerely,
"?' -4 e • J v
John L. Boaze
?l
Senior Biologist
cc: Attached List

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ATTACHMENT A:
Nantahala Power and Light Company is in the process of relicensing its Queens Creek
hydroelectric project with the Federal Energy Regulatory Commission (FERC Project Number
2964). Queens Creek is a small project located in Macon County; 17 miles WNW of Franklin,
North Carolina. Dam construction was completed in 1948 and power generation began in 1949;
continuing to the present. The project consists of an earth and rock-fill dam, a 37-acre reservoir,
a side-channel spillway, a penstock and reservoir drain, a powerhouse containing one 1440AW
generator, and associated facilities. The power generated at this project is used by the power
company for public utility purposes.
The reservoir created by the dam inundated approximately 4000 feet of stream channel. The
reservoir and stream currently have trout populations supported by state hatchery operations.
During initial construction, no wetland areas were affected and the continued operation of this
facility will not impact any wetlands.
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