Common use of Dillsboro Dam Removal & Powerhouse Disposition Clause in Contracts

Dillsboro Dam Removal & Powerhouse Disposition. a. File a Dillsboro Project license application with the FERC and the supporting 401 Water Quality Certification application with the North Carolina Division of Water Quality (NCDWQ) by 7/31/03. Advise both the FERC and the NCDWQ of the potential to surrender the license and request that the NCDWQ not issue a 401 Water Quality Certification and the FERC not issue an order on the license application for the Dillsboro Project until the potential license surrender is resolved. b. Work with the USFWS, NCDWR, NCDWQ and the NCWRC to complete the necessary environmental and engineering assessments. In addition to evaluating potential effects on aquatic species, the assessments will consider options for removing the powerhouse, converting the powerhouse to another use (e.g. museum), or simply leaving the powerhouse in as-is condition. DPNA will then use the results of these assessments to make a preliminary determination by 9/1/03 if it believes Dillsboro Dam removal can be done in a safe, environmentally beneficial and cost-effective manner and to determine the disposition of the powerhouse. c. Assuming the review outlined in Item F.2.b above indicates the dam can be removed safely, cost-effectively and in an environmentally beneficial manner, file a revised 401 Water Quality Certification application with the NCDWQ and file an application with the FERC to surrender the Dillsboro Project license, decommission Dillsboro Powerhouse, remove Dillsboro Dam and pursue the selected disposition path for the powerhouse as follows: 1) On the same day, file both a revised 401 Water Quality Certification application and a request to withdraw the previously filed 401 Water Quality Certification application for the Dillsboro Project with the NCDWQ. The revised application will support dam removal (also removal of the powerhouse if that disposition path is chosen). Both filings will be completed by 6/1/04. 2) File a license surrender application with the FERC by 6/1/04. 3) Assuming NCDWQ approval and FERC approval to surrender the license and remove the dam (and possibly the powerhouse) are received (could be received as early as 6/1/05) and the approvals do not add any significant costs, burdens or risks beyond those contemplated in DPNA’s license surrender and revised 401 applications, DPNA will decommission the powerhouse, complete dam removal and complete the selected powerhouse disposition path within 3 years following the final FERC approval order and the closure of all legal challenge periods. 4) Complete any DPNA portion of the post-removal stream remediation and monitoring within 2 years following completion of dam removal. 5) Continue to operate the Dillsboro Project under the terms of the existing license until powerhouse decommissioning occurs. 6) Within 1 year following completion of dam removal and powerhouse decommissioning / disposition (including any necessary stream restoration and the DPNA portion of any post-removal monitoring), DPNA will: a) Provide Local Governments the First Opportunity – Offer to convey interest in all its property associated with the Dillsboro Project, including land and any remaining structurally sound improvements, to the Town of Dillsboro. Allow a one-year window for the town to complete the conveyance. If the town doesn’t want the property or is unable to complete the conveyance within the specified timeframe, the same offer will then be extended to Jackson County. b) Free Up the Property if the Local Governments aren’t Interested - If neither the Town of Dillsboro nor Jackson County complete the property conveyance within the specified timeframes, then DPNA may do with its property as it sees fit. 7) Within 1 year following completion of dam removal and powerhouse decommissioning / disposition (including any necessary stream restoration and the DPNA portion of any post-removal monitoring), DPNA will provide the Town of Dillsboro with a written accounting of the dam removal process, including a summary of the expected benefits. 8) Sharing the Benefits of Dam Removal Partnerships - DPNA has established a cost estimate of $500,000 for the total Dillsboro Dam Removal/Powerhouse Disposition effort (including all steps from the environmental and engineering assessments planned for summer 2003, through completion of any DPNA portion of the post- removal stream remediation and monitoring). DPNA will pursue cost-share funding and in-kind service partnerships with other entities and will track DPNA’s actual costs throughout the project. Provided that the Town of Dillsboro is a party to any future settlement agreement involving dam removal, then DPNA will share the benefits of any cost savings it achieves with the town for additional investment in the town’s STEPS Initiative. DPNA will contribute an amount equal to DPNA’s actual savings (compared to its total $500,000 expected cost), up to a maximum DPNA contribution of $100,000, to the town for additional investment in DPNA-selected elements of the town’s STEPS Initiative. If the town is not a party to any future settlement agreement, then any DPNA cost savings will be added to the Riparian Habitat Enhancement initiative outlined below. Also, any DPNA cost savings above the $100,000 contribution to the town of Dillsboro will be added to the Riparian Habitat Enhancement initiative outlined below. (Note: The $100,000 potential contribution to the Town of Dillsboro is in addition to the $50,000 contribution identified in Item F.1.d above). All DPNA contributions will be made within 3 years following completion of all DPNA work activities associated with the Dillsboro Dam Removal/Powerhouse Disposition effort. d. If DPNA decides that the dam should not be removed, then: 1) The activities under Item F.2.c. above will not be required. 2) The limitations in this document concerning fish passage and Section 18 mandatory conditioning authority under the Federal Power Act would not apply and the fish passage issue would be re-evaluated by the USFWS, the NCWRC and DPNA on the DPNA hydro projects. 3) Any limitations in this document concerning minimum flows in the Nantahala River Bypass, the West Fork Bypass and in the Tanassee Creek Bypass (Bonas Defeat) would not apply. The minimum flow issue in these three locations would be re- evaluated by the NCDWQ, the NCWRC, the USFWS, the NCDWR, the USFS and DPNA and new proposals included in the 401 Water Quality Certification and FERC relicensing processes for the Nantahala Project, East Fork Project and the West Fork Project. The new proposals could include additional or modified minimum flows or other appropriate mitigation. 4) DPNA will make any necessary revisions to its 401 Water Quality Certification and FERC license applications. 5) Once any revised applications are received, the NCDWQ and the FERC will complete their reviews and issue their official decisions concerning the new licenses. 6) By 12/1/05 or within 6 months following the FERC license approval order for the Dillsboro Project, whichever comes last, DPNA will construct a canoe / kayak portage around the dam. 7) The DPNA contribution to the Unique Fishery Identification listed in Item F.3 below would not be required.

Dillsboro Dam Removal & Powerhouse Disposition. a. File a Dillsboro Project license application with the FERC and the supporting 401 Water Quality Certification application with the North Carolina Division of Water Quality (NCDWQ) by 7/31/03. Advise both the FERC and the NCDWQ of the potential to surrender the license and request that the NCDWQ not issue a 401 Water Quality Certification and the FERC not issue an order on the license application for the Dillsboro Project until the potential license surrender is resolved. b. Work with the USFWS, NCDWR, NCDWQ and the NCWRC to complete the necessary environmental and engineering assessments. In addition to evaluating potential effects on aquatic species, the assessments will consider options for removing the powerhouse, converting the powerhouse to another use (e.g. museum), or simply leaving the powerhouse in as-is condition. DPNA will then use the results of these assessments to make a preliminary determination by 9/1/03 if it believes Dillsboro Dam removal can be done in a safe, environmentally beneficial and cost-effective manner and to determine the disposition of the powerhouse. c. Assuming the review outlined in Item F.2.b above indicates the dam can be removed safely, cost-effectively and in an environmentally beneficial manner, file a revised 401 Water Quality Certification application with the NCDWQ and file an application with the FERC to surrender the Dillsboro Project license, decommission Dillsboro Powerhouse, remove Dillsboro Dam and pursue the selected disposition path for the powerhouse as follows: 1) On the same day, file both a revised 401 Water Quality Certification application and a request to withdraw the previously filed 401 Water Quality Certification application for the Dillsboro Project with the NCDWQ. The revised application will support dam removal (also removal of the powerhouse if that disposition path is chosen). Both filings will be completed by 6/1/04. 2) File a license surrender application with the FERC by 6/1/04. 3) Assuming NCDWQ approval and FERC approval to surrender the license and remove the dam (and possibly the powerhouse) are received (could be received as early as 6/1/05) and the approvals do not add any significant costs, burdens or risks beyond those contemplated in DPNA’s license surrender and revised 401 applications, DPNA will decommission the powerhouse, complete dam removal and complete the selected powerhouse disposition path within 3 years following the final FERC approval order and the closure of all legal challenge periods. 4) Complete any DPNA portion of the post-removal stream remediation and monitoring within 2 years following completion of dam removal. 5) Continue to operate the Dillsboro Project under the terms of the existing license until powerhouse decommissioning occurs. 6) Within 1 year following completion of dam removal and powerhouse decommissioning / disposition (including any necessary stream restoration and the DPNA portion of any post-post- removal monitoring), DPNA will: a) Provide Local Governments the First Opportunity – Offer to convey interest in all its property associated with the Dillsboro Project, including land and any remaining structurally sound improvements, to the Town of Dillsboro. Allow a one-year window for the town to complete the conveyance. If the town doesn’t want the property or is unable to complete the conveyance within the specified timeframe, the same offer will then be extended to Jackson County. b) Free Up the Property if the Local Governments aren’t Interested - If neither the Town of Dillsboro nor Jackson County complete the property conveyance within the specified timeframes, then DPNA may do with its property as it sees fit. 7) Within 1 year following completion of dam removal and powerhouse decommissioning / disposition (including any necessary stream restoration and the DPNA portion of any post-post- removal monitoring), DPNA will provide the Town of Dillsboro with a written accounting of the dam removal process, including a summary of the expected benefits. 8) Sharing the Benefits of Dam Removal Partnerships - DPNA has established a cost estimate of $500,000 for the total Dillsboro Dam Removal/Powerhouse Disposition effort (including all steps from the environmental and engineering assessments planned for summer 2003, through completion of any DPNA portion of the post- post-removal stream remediation and monitoring). DPNA will pursue cost-share funding and in-kind service partnerships with other entities and will track DPNA’s actual costs throughout the project. Provided that the Town of Dillsboro is a party to any future settlement agreement involving dam removal, then DPNA will share the benefits of any cost savings it achieves with the town for additional investment in the town’s STEPS Initiative. DPNA will contribute an amount equal to DPNA’s actual savings (compared to its total $500,000 expected cost), up to a maximum DPNA contribution of $100,000, to the town for additional investment in DPNA-DPNA- selected elements of the town’s STEPS Initiative. If the town is not a party to any future settlement agreement, then any DPNA cost savings will be added to the Riparian Habitat Enhancement initiative outlined below. Also, any DPNA cost savings above the $100,000 contribution to the town of Dillsboro will be added to the Riparian Habitat Enhancement initiative outlined below. (Note: The $100,000 potential contribution to the Town of Dillsboro is in addition to the $50,000 contribution identified in Item F.1.d above). All DPNA contributions will be made within 3 years following completion of all DPNA work activities associated with the Dillsboro Dam Removal/Powerhouse Disposition effort. d. If DPNA decides that the dam should not be removed, then: 1) The activities under Item F.2.c. above will not be required. 2) The limitations in this document concerning fish passage and Section 18 mandatory conditioning authority under the Federal Power Act would not apply and the fish passage issue would be re-evaluated by the USFWS, the NCWRC and DPNA on the DPNA hydro projects. 3) Any limitations in this document concerning minimum flows in the Nantahala River Bypass, the West Fork Bypass and in the Tanassee Creek Bypass (Bonas Defeat) would not apply. The minimum flow issue in these three locations would be re- re-evaluated by the NCDWQ, the NCWRC, the USFWS, the NCDWR, the USFS and DPNA and new proposals included in the 401 Water Quality Certification and FERC relicensing processes for the Nantahala Project, East Fork Project and the West Fork Project. The new proposals could include additional or modified minimum flows or other appropriate mitigation. 4) DPNA will make any necessary revisions to its 401 Water Quality Certification and FERC license applications. 5) Once any revised applications are received, the NCDWQ and the FERC will complete their reviews and issue their official decisions concerning the new licenses. 6) By 12/1/05 or within 6 months following the FERC license approval order for the Dillsboro Project, whichever comes last, DPNA will construct a canoe / kayak portage around the dam. 7) The DPNA contribution to the Unique Fishery Identification listed in Item F.3 below would not be required.

Dillsboro Dam Removal & Powerhouse Disposition. a. File a Dillsboro Project license application with the FERC and the supporting 401 Water Quality Certification application with the North Carolina Division of Water Quality (NCDWQ) by 7/31/03. Advise both the FERC and the NCDWQ of the potential to surrender the license and request that the NCDWQ not issue a 401 Water Quality Certification and the FERC not issue an order on the license application for the Dillsboro Project until the potential license surrender is resolved. b. Work with the USFWS, NCDWR, NCDWQ and the NCWRC to complete the necessary environmental and engineering assessments. In addition to evaluating potential effects on aquatic species, the assessments will consider options for removing the powerhouse, converting the powerhouse to another use (e.g. museum), or simply leaving the powerhouse in as-is condition. DPNA will then use the results of these assessments to make a preliminary determination by 9/1/03 if it believes Dillsboro Dam removal can be done in a safe, environmentally beneficial and cost-effective manner and to determine the disposition of the powerhouse. c. Assuming the review outlined in Item F.2.b above indicates the dam can be removed safely, cost-effectively and in an environmentally beneficial manner, file a revised 401 Water Quality Certification application with the NCDWQ and file an application with the FERC to surrender the Dillsboro Project license, decommission Dillsboro Powerhouse, remove Dillsboro Dam and pursue the selected disposition path for the powerhouse as follows: 1) On the same day, file both a revised 401 Water Quality Certification application and a request to withdraw the previously filed 401 Water Quality Certification application for the Dillsboro Project with the NCDWQ. The revised application will support dam removal (also removal of the powerhouse if that disposition path is chosen). Both filings will be completed by 6/1/04. 2) File a license surrender application with the FERC by 6/1/04. 3) Assuming NCDWQ approval and FERC approval to surrender the license and remove the dam (and possibly the powerhouse) are received (could be received as early as 6/1/05) and the approvals do not add any significant costs, burdens or risks beyond those contemplated in DPNA’s license surrender and revised 401 applications, DPNA will decommission the powerhouse, complete dam removal and complete the selected powerhouse disposition path within 3 years following the final FERC approval order and the closure of all legal challenge periods. 4) Complete any DPNA portion of the post-removal stream remediation and monitoring within 2 years following completion of dam removal. 5) Continue to operate the Dillsboro Project under the terms of the existing license until powerhouse decommissioning occurs. 6) Within 1 year following completion of dam removal and powerhouse decommissioning / disposition (including any necessary stream restoration and the DPNA portion of any post-post- removal monitoring), DPNA will: a) Provide Local Governments the First Opportunity – Offer to convey interest in all its property associated with the Dillsboro Project, including land and any remaining structurally sound improvements, to the Town of Dillsboro. Allow a one-year window for the town to complete the conveyance. If the town doesn’t want the property or is unable to complete the conveyance within the specified timeframe, the same offer will then be extended to Jackson Xxxxxxx County. b) Free Up the Property if the Local Governments aren’t Interested - If neither the Town of Dillsboro nor Jackson Xxxxxxx County complete the property conveyance within the specified timeframes, then DPNA may do with its property as it sees fit. 7) Within 1 year following completion of dam removal and powerhouse decommissioning / disposition (including any necessary stream restoration and the DPNA portion of any post-post- removal monitoring), DPNA will provide the Town of Dillsboro with a written accounting of the dam removal process, including a summary of the expected benefits. 8) Sharing the Benefits of Dam Removal Partnerships - DPNA has established a cost estimate of $500,000 for the total Dillsboro Dam Removal/Powerhouse Disposition effort (including all steps from the environmental and engineering assessments planned for summer 2003, through completion of any DPNA portion of the post- post-removal stream remediation and monitoring). DPNA will pursue cost-share funding and in-kind service partnerships with other entities and will track DPNA’s actual costs throughout the project. Provided that the Town of Dillsboro is a party to any future settlement agreement involving dam removal, then DPNA will share the benefits of any cost savings it achieves with the town for additional investment in the town’s STEPS Initiative. DPNA will contribute an amount equal to DPNA’s actual savings (compared to its total $500,000 expected cost), up to a maximum DPNA contribution of $100,000, to the town for additional investment in DPNA-DPNA- selected elements of the town’s STEPS Initiative. If the town is not a party to any future settlement agreement, then any DPNA cost savings will be added to the Riparian Habitat Enhancement initiative outlined below. Also, any DPNA cost savings above the $100,000 contribution to the town of Dillsboro will be added to the Riparian Habitat Enhancement initiative outlined below. (Note: The $100,000 potential contribution to the Town of Dillsboro is in addition to the $50,000 contribution identified in Item F.1.d above). All DPNA contributions will be made within 3 years following completion of all DPNA work activities associated with the Dillsboro Dam Removal/Powerhouse Disposition effort. d. If DPNA decides that the dam should not be removed, then: 1) The activities under Item F.2.c. above will not be required. 2) The limitations in this document concerning fish passage and Section 18 mandatory conditioning authority under the Federal Power Act would not apply and the fish passage issue would be re-evaluated by the USFWS, the NCWRC and DPNA on the DPNA hydro projects. 3) Any limitations in this document concerning minimum flows in the Nantahala River Bypass, the West Fork Bypass and in the Tanassee Creek Bypass (Bonas Defeat) would not apply. The minimum flow issue in these three locations would be re- re-evaluated by the NCDWQ, the NCWRC, the USFWS, the NCDWR, the USFS and DPNA and new proposals included in the 401 Water Quality Certification and FERC relicensing processes for the Nantahala Project, East Fork Project and the West Fork Project. The new proposals could include additional or modified minimum flows or other appropriate mitigation. 4) DPNA will make any necessary revisions to its 401 Water Quality Certification and FERC license applications. 5) Once any revised applications are received, the NCDWQ and the FERC will complete their reviews and issue their official decisions concerning the new licenses. 6) By 12/1/05 or within 6 months following the FERC license approval order for the Dillsboro Project, whichever comes last, DPNA will construct a canoe / kayak portage around the dam. 7) The DPNA contribution to the Unique Fishery Identification listed in Item F.3 below would not be required.