Yadkin Hydroelectric Project FERC No. 2197 Relicensing Settlement Agreement February 2007 Table of Contents Table of Contents ...........................................................................................................................i List of Tables................................................................................................................................ iv List of Figures............................................................................................................................... v Acronyms ..................................................................................................................................... vi 1.0 General............................................................................................................................. 1-1 1.1 Purpose and Effect of Settlement Agreement ..................................................................... 1-1 1.2 Definitions ........................................................................................................................ 1-1 1.3 General Provisions ........................................................................................................... 1-3 1.3.1 Scope of Settlement Agreement ................................................................................... 1-3 1.3.2 Procedures Regarding Certain Statutory Authorities and Obligations .............................. 1-3 1.3.3 Commitments During Relicensing ................................................................................. 1-4 1.3.4 Structure of Settlement Agreement ............................................................................... 1-5 1.3.5 Effective Date and Term of Settlement Agreement ......................................................... 1-5 1.3.6 Effective Date of Settlement Obligations ....................................................................... 1-6 1.3.7 Jurisdiction.................................................................................................................. 1-6 1.3.8 Dispute Resolution ...................................................................................................... 1-6 1.3.9 Withdrawal from Settlement Agreement ........................................................................ 1-8 1.3.10 Miscellaneous ............................................................................................................. 1-9 1.3.11 Actions upon Execution of Agreement......................................................................... 1-12 1.3.12 Rights, Duties, and Obligations Regarding Section 401 Certification ............................. 1-16 1.3.13 Potential for Negotiation of Recreation Easements ...................................................... 1-17 1.3.14 Termination of Settlement Agreement ......................................................................... 1-17 2.0 Settlement Provisions Not Covered by Proposed License Articles......................... 2-1 2.1 Project Operations ............................................................................................................ 2-1 2.1.1 Flow Adjustment for Enhancement of Downstream Spawning ........................................ 2-1 2.1.2 Low Inflow Prot ocol ..................................................................................................... 2-2 2.2 Water Quality ................................................................................................................... 2-2 2.2.1 Tailwater Dissolved Oxygen Enhancement Schedule..................................................... 2-2 2.2.2 Tailwater Dissolved Oxygen Enhancement Operations .................................................. 2-4 2.2.3 Dissolved Oxygen Monitoring ....................................................................................... 2-4 2.2.4 Additional Dissolved Oxygen Enhancement Actions....................................................... 2-5 2.2.5 Total Maximum Daily Load Process .............................................................................. 2-5 2.3 Recreation ....................................................................................................................... 2-5 2.3.1 Recreation Facility Improvements................................................................................. 2-5 2.3.2 Operations and Maintenance Funding Commitments ..................................................... 2-5 2.3.3 Yadkin-Pee Dee River Trail Fund ................................................................................. 2-6 2.3.4 Railroad Lines ............................................................................................................. 2-6 2.3.5 Portage Trail Reimbursement ....................................................................................... 2-6 2.3.6 Recreation Safety and Enforcement.............................................................................. 2-7 2.3.7 Assessing Future Recreational Needs .......................................................................... 2-7 2.3.8 Compliance with the Project’s Shoreline Management Plan............................................ 2-7 2.3.9 Escalation of Funds ..................................................................................................... 2-7 Yadkin Hydroelectric Project (FERC No. 2197) i February 2007 Relicensing Settlement Agreement 2.4 Shoreline Management ..................................................................................................... 2-8 2.4.1 Modifications to the Existing Yadkin Shoreline Management Plan ................................... 2-8 2.4.2 Implementation of the Shoreline Management Plan Modifications ................................... 2-8 2.4.3 Fees ........................................................................................................................... 2-8 2.5 Wildlife, Aquatics, and Rare, Threatened and Endangered (RTE) Species............................ 2-8 2.5.1 RTE Species ............................................................................................................... 2-8 2.5.2 Invasive Exotic Species ............................................................................................... 2-9 2.6 Land Conveyances ........................................................................................................... 2-9 2.6.1 Morrow Mountain State Park Expansion Lands .............................................................. 2-9 2.6.2 Tuckertown Reservoir Lands ........................................................................................ 2-9 2.6.3 High Rock Reservoir Lands ........................................................................................ 2-10 2.6.4 Time Requirements of Land Conveyances .................................................................. 2-10 2.6.5 Interim Land Management ......................................................................................... 2-11 2.7 Land Grants ................................................................................................................... 2-11 2.7.1 Uwharrie National Forest Lands ................................................................................. 2-11 2.7.2 Eagle Point Nature Preserve and Park Lands .............................................................. 2-11 2.7.3 Town of Badin Lands ................................................................................................. 2-12 2.8 Local Community Enhancement ...................................................................................... 2-12 2.8.1 City of Albemarle Water Withdrawals .......................................................................... 2-12 3.0 Proposed License Articles ............................................................................................ 3-1 3.1 Project Operations ............................................................................................................ 3-1 3.1.1 Article PO-1 - Reservoir Operations .............................................................................. 3-1 3.1.2 Article PO-2 - Project Instream Flows............................................................................ 3-5 3.1.3 Article PO-3 - Flow and Reservoir Elevation Monitoring.................................................. 3-5 3.1.4 Article PO-4 - Low Inflow Protocol................................................................................. 3-6 3.1.5 Article PO-5 - Hydro Project Maintenance and Emergency Protocol .............................. 3-11 3.2 Water Quality ................................................................................................................. 3-11 3.2.1 Article WQ-1 - Water Quality ...................................................................................... 3-11 3.2.2 Article WQ-2 - Dissolved Oxygen Monitoring ............................................................... 3-11 3.3 Recreation ..................................................................................................................... 3-11 3.3.1 Article REC-1 - Recreational Enhancements ............................................................... 3-11 3.4 Shoreline Management ................................................................................................... 3-12 3.4.1 Article SMP-1 - Shoreline Management Plan ............................................................... 3-12 3.5 Cultural Resources ........................................................................................................