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HomeMy WebLinkAboutGrant Lake Falls Creek Joint Meeting Presentation 2009December 4, 2009 Ms. Kimberly Bose, Secretary Federal Energy Regulatory Commission 888 First Street NE Washington, DC 20426 FILED ELECTRON! CALLY Subject: Grant Lake/Falls Creek (FERC Project No. 13212/13211) Joint Meeting Transcript Dear Secretary Bose, Pursuant to 18 CFR §4.38, Kenai Hydro, LLC (KHL) held a Joint Meeting to discuss the proposed Grant Lake/Falls Creek Project with the public, agencies, and Tribes on November 12,2009. Notice of this meeting was filed with the Commission on October 27, 2009 and published in local papers on Thursday, October 29,2009. This filing contains: 1. A transcript of the November 12, 2009 meeting; 2. The PowerPoint presentation that was given at the November 12, 2009 meeting; 3. An electronic copy of the sign-in sheet from the November 12, 2009 meeting; and 4 . Proof of publication of the public notice in the Peninsula Clarion, the Anchorage Daily News, and the Homer Tribune. A public notice was also published in the Seward Public Log, and the notice was posted on Kenai Hydro's website (www.kenaihydro.com). If you have questions about this filing, please contact Brad Zubeck, Kenai Hydro (907.335.6204, bzubeck@homerelectric.com). Sincerely, ~~~~ Jenna Borovansky Long View Associates, Inc. On BehalfofKenai Hydro, LLC PO Box 3433, Coeur d'Alene, 10 83816 • (208) 765-1413 • (503) 345-3406 fax • www.longviewassociates.com HYDROELECTRIC PROJECT GRANT LAKE/FALLS CREEK HYDROELECTRIC PROJECT JOINT MEETING PRESENTATION Taken November 12, 2009 Commencing at 6:00 p.m. Volume I Pages 1 -119, inclusive Taken at AVTEC Seward Campus 519 Fourth Avenue Seward, AK 99664 Reported by: Valerie Martinez 11/12/2009 Page 1 PENINSULA REPORTING 110 Trading Bay Drive, Suite 100 907/283-4429 Kenai, Alaska 99611 18f4c299-a95c-4869-b691-84081fed9c33 HYDROELECTRIC PROJECT 11/12/2009 Page 2 1 A P P E A RAN C E S: 2 Brad Zubeck 1 Kenai Hydro, LLC 3 Jenna Borovansky 1 Long View Associates 4 Bob Butera, HDR Alaska, Inc. 5 Amanda Prevel-Ramos, HDR Alaska 1 Inc. 6 John Morsell 1 Northern Ecological Services 7 8 9 10 11 Reported by: 12 Valerie Martinez 13 14 15 16 17 18 BE IT KNOWN that the aforementioned proceedings 19 were taken at the time and place duly noted on the title 2o page before Valerie Martinez, Notary Republic within and 21 for the State of Alaska. 22 23 24 25 PENINSULA REPORTING 110 Trading Bay Drive, Suite 100 907/283-4429 Kenai/ Alaska 99611 18f4c299-a95c-4869-b691-84081fed9c33 HYDROELECTRIC PROJECT 11/12/2009 Page 3 1 P R 0 C E E D I N G S 2 BRAD ZUBECK: Thanks very much for coming out 3 tonight. I appreciate it. Thank you. My name is Brad 4 Zubeck. I'm with Kenai Hydro and Homer Electric. We'll 5 make some introductions to begin with. This is the 6 Grant Lake/Falls Creek Hydro Project. It's a joint 7 meeting to take comments tonight on issues. 8 We do have a court reporter. A FERC 9 requirement is to provide a transcript of the meeting. 10 And so if you would speak clearly. If you have a 11 comment/ please state your name 1 first and last name. 12 She may ask you to spell it. If you do remember to 13 spell it 1 that would be great. 14 With that, we'll go to our first slide. I 15 introduced myself with Kenai Hydro. We have some other 16 folks from HEA tonight. We have our general manager, 17 Mr. Brad Janorschke; our director of power production 18 and transmission, Mr. Harvey Ambrose; and our director 19 of engineering and operations, Don Smith. Thanks for 20 coming out tonight, guys. 21 Jenna Borovansky with Long View Associates is 22 our FERC licensing consultant. She'll be presenting 23 several segments tonight. With HDR, an engineering 24 consultant, we have Bob Butera and Amanda Prevel-Ramos. 25 And John Morsell with Northern Ecological Services. And PENINSULA REPORTING 110 Trading Bay Drive, Suite 100 907/283-4429 Kenai/ Alaska 99611 18f4c299·a95c4869-b691-84081fed9c33 HYDROELECTRIC PROJECT 11/12/2009 Page 4 1 we're a person down tonight. John's wife, Sally, 2 usually handles terrestrial and cultural resources, 3 recreational resources, and John and Jenna are going to 4 stand in. She's a victim of the cold and flu and 5 couldn't make it. 6 A brief update on our other projects. If 7 you've been paying attention, you may have noticed that 8 we've surrendered permits on the Ptarmigan Lake and 9 Crescent Lake projects. For environmental and economic 10 reasons, they aren't attractive to us. And we have no 11 plans right now for additional projects at this time. 12 So on the Grant Lake/Falls Creek Project, our 13 plans are to finalize our baseline studies from this 14 year. We'll be issuing a final report in December. We 15 have copies of the interim reports on the tables[ the 16 spiral bound copies of the reports. They're interim 17 because they don't have about a month and a half of 18 hydrologic data that's been quality controlled and 19 integrated. So when the report comes out in December[ 20 we'll have that finalized. It will be available on our 21 web site. 22 We have an agenda tonight. On the backside of 23 that you will find directions on how to file comments 24 with FERC and how to find our Kenai Hydro site. So if 25 you walk out of here tonight with that, you'll have the PENINSULA REPORTING 110 Trading Bay Drivel Suite 100 907/283-4429 Kenai, Alaska 99611 18f4c299-a95c-4869-b691-84081fed9c33 HYDROELECTRIC PROJECT 11/12/2009 Page 5 1 information on how to get ahold of FERC and how to get 2 ahold of us. 3 Our other task is to file comments. The 4 comments tonight will be recorded and sent to FERC. 5 FERC would prefer that you file comments directly with 6 them and also copy us. But if you do comment to us, 7 we'll gladly file those with FERC. They won't be lost. 8 We'll send those on to FERC. And if you have questions 9 on how to comment, we'll be covering that a little bit 10 later. 11 The schedule that we've discussed tonight is 12 tentative for a couple reasons. One, it's --the dates 13 that you see would get us to a license application 14 within the term of our preliminary permit. Also we've 15 taken a look at the scope of the studies that would be 16 required and we anticipate that we won't have enough 17 funds to fully implement those. So after tonight, we'll 18 suspend study activity and other activities until we can 19 secure enough funds to fully implement what we think has 20 to be done to study on the project. 21 So a brief overview of our agenda for tonight. 22 We'll talk about the FERC licensing process --the FERC 23 licensing process that we're in. We'll talk about the 24 goals for the meeting, how to file comments with FERC, 25 give you a brief project description, and then jump into PENINSULA REPORTING 110 Trading Bay Drive, Suite 100 907/283-4429 Kenai, Alaska 99611 I 18f4c299-a95c-4869·b691·84081fed9c33 HYDROELECTRIC PROJECT 11/12/2009 Page 6 1 the resource areas. 2 The way these will be presented is you'll get 3 a little bit of existing information, a summary of 4 existing information, up front and then we'll talk about 5 the resource issues that we've identified. We'll fit a 6 break in there somewhere in the middle of these 7 resources. And at the end, we'll have time for wrap-up. 8 And you can talk to us individually both at breaks or 9 after the meeting if you'd like to talk individually 10 about more detailed information. 11 So our goal and the purpose for the meeting is 12 to summarize existing information. The goal of this in 13 the licensing process is to develop a common 14 understanding of the project, the project concepts and 15 issues that might need to be studied. 16 What we present tonight should all be 17 contained in the pre-application document. Copies of 18 those are also at tables. There's a copy over here in 19 the binder and a copy behind the binder. At breaks or 20 after the meeting, take a look at that. And, again, on 21 the tables are the interim, or draft, report of the 22 baseline studies that were conducted this summer. 23 Now, the primary purpose is to identify study 24 topics, to take a look at the project. You don't have 25 to give us all your comments tonight. There's a 60-day PENINSULA REPORTING 110 Trading Bay Drive, Suite 100 907/283-4429 Kenai, Alaska 99611 18f4c299·a95c-4869·b691-84081fed9c33 HYDROELECTRIC PROJECT 11/12/2009 Page 7 1 comment period. Again, you can use the FERC web site to 2 file those comments and copy us with those. And we'll 3 go into that in more detail a little bit later. 4 The feedback, the comments that we would like 5 to have is -you see the issues that we've identified? 6 We're looking to see if we've missed anything. Is there 7 anything important out there that's important to you 8 that you think should be studied? There's some 9 guidelines from FERC on how to present that. And, 1o again, we'll go over that a little bit later. 11 So just protocol for the night, some 12 guidelines. Please hold your questions until the end of 13 each segment. We'll provide a break at the end of each 14 segment for questions. Try to be concise, if you can. 15 Be thinking about your questions and keep them brief. 16 Focus your comments on identifying or clarifying 17 potential study issues or impacts. If you do have 18 extensive additional information we ask that you please 19 submit those to us in writing. We'd really appreciate 2o that if you let us know. And, again, we'll be available 21 at the breaks and afterwards for individual questions or 22 comments or clarifying questions. 23 So with that, we'll hand it over to Jenna 24 Borovansky to talk about the FERC process and the 25 filing. PENINSULA REPORTING 110 Trading Bay Drive, Suite 100 907/283-4429 Kenai, Alaska 99611 18f4c299-a95c-4869-b691-84081 fed9c33 HYDROELECTRIC PROJECT 11/12/2009 1 Page 8 JENNA BOROVANSKY: If you haven't had the 2 pleasure of going through a FERC process before, I just 3 thought I'd run down where we're at in the process and 4 what you can expect next. 5 The Federal Energy Regulatory Commission, from 6 here on after FERC, has jurisdiction over hydroelectric 7 development. And under their jurisdiction they have 8 different processes for applicants to make a choice, 9 essentially which process they would like to use. Kenai 10 has requested to use the traditional licensing process. 11 And that was at the same time we submitted the 12 pre-application document, and FERC did approve use of 13 that process. And so I will go through kind of the main 14 components of the traditional licensing process. 15 We're in the first stage consultation now. 16 And the idea of the process overall is just to lay out 17 essentially the rules and the timeline for how Kenai 18 Hydro is going to work with the public and agencies as 19 they develop their proposal for the hydroelectric 20 project involvement. 21 We've filed a pre-application document. Right 22 now we're at our joint meeting, November 12th. You have 23 your 60-day comment. And then in the traditional 24 licensing process, there's also a dispute --kind of the 25 next step would be dispute resolution. If everybody PENINSULA REPORTING 110 Trading Bay Drive, Suite 100 907/283-4429 Kenai, Alaska 99611 .... I 18f4c299·a95c-4869·b691·84081fed9c33 HYDROELECTRIC PROJECT 11/12/2009 Page 9 1 doesn't come into agreement on the study -the topics 2 to be studied, that's what you'd kick into. 3 But with the approval of the traditional 4 licensing process, in this instance by request, FERC is 5 going to do early scoping. So what that means is 6 they'll actually come out sometime -you know, on the 7 schedule right now sometime in 2010, but it will be 8 dependent upon when the studies start. And they will 9 actually take a look at the feedback from today, the 10 list of issues that have already been submitted, and 11 they'll actually issue their own documents that says 12 these are the study issues. 13 And then they'll hold another public meeting, 14 which will also include a site visit, and we'll be able 15 to tour the project site with FERC and agencies and any 16 interested public. And then they'll hold another 60 day 17 comment period and then that would kick off studies. 18 And after all the comments are received from 19 this meeting, we'll be in kind of the study phase, which 20 is the second stage of consultation. Essentially 21 remember, as Brad said, all these dates are tentative as 22 to get us to the point of filing by the end of the 23 preliminary permit term. But it just lays out -the 24 dates lay out for you that we will issue draft study 25 plans, there will be a chance for comments, final study PENINSULA REPORTING 110 Trading Bay Drive, Suite 100 907/283-4429 Kenai, Alaska 99611 ! 18f4c299-a95c-4869-b691.S4081fed9c33 HYDROELECTRIC PROJECT 11/12/2009 Page 10 1 plans, and then the study season will move forward with 2 the next formal public comment period after that, being 3 a filing of the draft license application which will 4 then have the benefit of all the information that was 5 gained from the resource studies to inform a draft 6 proposal for development of the project. 7 And then third-stage consultation is just the 8 actual filing of the license application and then it 9 kicks to FERC processing for that. 10 And then how -kind of the nitty-gritty of 11 how you can get more information throughout the process 12 and file. Comments with FERC, they do prefer electric 13 comments. You can do that on their web site two 14 different ways. There's a quick comment, which actually 1• 15 really is pretty easy. You can just cut and paste from 16 any document and comment, but you are limited to 6,000 17 characters. If you have more information than that, you 18 just register your e-mail address with FERC. 19 And if you have any questions or problems, the 20 project manager is Joe Adamson. He'll help you with 21 getting your comments in. And they also will accept 22 written comments as well. 23 Most of you are on the e-mail list and you get 24 e-mails from me. I'm also happy to help you with your 25 first FERC filing if you need help. Usually once you PENINSULA REPORTING 110 Trading Bay Drive, Suite 100 907/283-4429 Kenai, Alaska 99611 1.' 18f4c299-a95c-4869-b691-84081fed9c33 HYDROELECTRIC PROJECT 11/12/2009 Page 11 1 get it through, then you're set up in your system and 2 you're good to go. 3 And the key thing with filing with FERC is 4 always to reference the project numbers, which are the 5 P-13211 and P-13212. And that's on the back of your 6 agenda. 7 Along with these two web sites, we'll always 8 keep updates and any filings that Kenai Hydro has made 9 on to kenaihydro.com web site, which there's also if 10 you haven't done it already, you can register your 11 e-mail with us, so then we'll actually send I'll send 12 you an e-mail whenever we post anything new to the web 13 site. So that's one way to keep track of information. 14 You can also keep track of all the official 15 filings with FERC by registering with them. Again, you 16 go to the same web site and choose the e-subscription 17 service. And you will get an e-mail notification any 18 time anyone files a comment or filing on these two 19 projects. And, again, you use those project numbers. 20 And with that, I'll turn it over to Bob to 21 start with an overview of the project. 22 BOB BUTERA: I'm Bob Butera. I'm with HDR and 23 we're doing the technical work and also some of the 24 environmental work on this project. This next step, I'm 25 just going to talk about the technical part of it and PENINSULA REPORTING 110 Trading Bay Drive, Suite 100 907/283-4429 Kenai, Alaska 99611 I' 18f4c299-a95c-4869-b691-84081fed9c33 HYDROELECTRIC PROJECT 11/12/2009 Page 12 1 what the project looks like at this time. It's still in 2 conceptual stages. It's evolving. But I'll bring you 3 up to speed on where we're at at this time. 4 First, just to get an idea of where the 5 project is, here's the Seward Highway corning from 6 Anchorage up north, corning south to Seward. Moose Pass 7 is here. Upper Trail Lake, Cook Inlet Hatchery/ and B Moose Pass here. Lower Trail Lake and then Kenai Lake. 9 Grant Lake is the dog leg shaped lake here. 10 You can't see it from the highway. It's behind this 11 morainal and bedrock feature. Grant Creek comes down 12 from this end of the lake. It's the outlet of Grant 13 Lake and then feeds into what's called the narrows at 14 Trail Lake. 15 Falls Creek, which is another component of 16 this project 1 is to the south of Grant Lake. And it's a 17 steep stream that feeds into Trail Creek and it does not 18 have any lake features on it. 19 A hydro project essentially needs two things. 20 It needs water and it needs head or fall to drop that 21 water through to generate power. This Grant Lake 22 Project has those. It gets the water from the drainage 23 basin of Grant Lake and it gets its drop from the 24 difference between Grant Lake and Trail Lake, which is 25 about 200 feet. ' · .. 907/283-4429 PENINSULA REPORTING 110 Trading Bay Drive, Suite 100 Kenai/ Alaska 99611 i.' 18f4c299-a95c4869·b691-84081fed9c33 HYDROELECTRIC PROJECT 11/12/2009 1 Page 13 The project really has a long history. It was 2 looked at first in the '50s by the USGS as a power 3 project and then it was looked at again in the 1980s by 4 the Alaska Energy Authority as a power project. And 5 both of those projects looked at a combination of a 6 tunnel or a penstock corning down from Grant Lake at this 7 point down to Trail Lake. a And the reason they basically, they 9 completely bypassed Grant Creek. And the reason they 1o did that is that's the way to get the most drop out of 11 the water so you get the most power from it. It makes 12 it the most economical project. 13 The project we're looking at today is a little 14 bit different and it actually continues to evolve as the 15 environmental studies on this project evolve because the 16 two work hand in hand. But for any hydroelectric 17 project, there's a number of components. There's access 18 to the project, there's an intake, there's a conveyance 19 system to bring the water from the intake to the 20 powerhouse, a powerhouse, and then a transmission line 21 to get the power from the powerhouse to some intertie to 22 bring it to consumers. 23 What we've laid out here --and here's Grant 24 Lake up here, so north would be to this side of this 25 picture and Seward would be this way. We're looking at PENINSULA REPORTING 110 Trading Bay Drive, Suite 100 907/283-4429 Kenai, Alaska 99611 18f4c299-a95c-4869·b691-84081 fed9c33 HYDROELECTRIC PROJECT 11/12/2009 Page 14 1 coming in off of the Seward Highway. There's an 2 existing access across the railroad tracks here and 3 there's an existing mining road that goes up along Falls 4 Creek bringing our access in from that point across the 5 contours here and branching one branch to go up to Grant 6 Lake for a construction access for the intake and the 7 other branch going down to the powerhouse. And that 8 would be for access on a continual basis. 9 The intake that we envision, the intake and 10 conveyance system, is a tunnel that would run through 11 the rock out to a point here where it drops down through 12 a pipeline to the powerhouse. Previously -some of the 13 previous versions of this project going back to the '80s 14 actually showed a penstock, which would be an 15 aboveground feature coming down, but there is actually 16 no practical way to do that because the ground is much 17 higher through this reach than it is here. So the only 18 way to get the water from the lake down to a powerhouse 19 is really through a tunnel. 2o That tunnel would be about 10 foot diameter 21 and it's about 2800 feet long. The intake to that 22 tunnel is right here. It's very much conceptual at this 23 time, but what we envision is an intake on the shore of 24 the lake and potentially a small diversion dam at the 25 outlet of the lake here. PENINSULA REPORTING 110 Trading Bay Drive, Suite 100 907/283-4429 Kenai, Alaska 99611 18f4c299·a95c-4869-b691·84081 fed9c33 HYDROELECTRIC PROJECT 11/12/2009 Page 15 1 The powerhouse would be down here at the if 2 you look at Trail -Grant Creek, it basically is a 3 fairly low gradient stream up until this point. And 4 then it hits a canyon and then it gets very steep up to 5 here. And that's where you get most of your drop. So 6 what we're looking at doing is putting the powerhouse 7 right at the base of that canyon. 8 The main purpose for that -obviously, we 9 wouldn't want to do that for power generation. It would 10 be better if we could get the water all the way to here 11 because we could get more drop out of it. But there's a 12 lot of fish in this piece of the stream and we want to 13 keep the water in it. So that's why the powerhouse 14 would be at this point because the water would come 15 through the penstock, into the powerhouse, and back into 16 the creek so this piece of the creek would not be 17 dewatered. 18 From the powerhouse there would be a 19 transmission line that connects to the existing intertie 20 that runs along the highway. 21 That's essentially the essence of the project. 22 Some of the details. The powerhouse right now we're 23 envisioning would have two turbines in it. It would be 24 about four and a half megawatt total. And the two 25 turbines are so that it can handle different flows at PENINSULA REPORTING 110 Trading Bay Drive, Suite 100 907/283-4429 Kenai, Alaska 99611 ! 18f4c299·a95c~69-b691-84081fed9c33 HYDROELECTRIC PROJECT 11/12/2009 Page 16 1 different times of the year and still be efficient. 2 The other component of this project is Falls 3 Creek over here. We still don't know if it's viable. 4 It kind of looks like it might be and we're keeping it 5 in the mix at this point, but its components are an 6 intake here, a pipeline that runs across the contours 7 here and comes into Grant Lake. Water would go into 8 Grant Lake, mix with Grant Lake, and then it would run 9 through the same system here. Its purpose would be to 10 add more water to Grant Lake and more water equals 11 greater power. That's essentially the project. 12 Any questions on the layout of the project or 13 how it works? Go ahead. 14 DAVID PEARSON: Will you be completely 15 dewatering Falls Creek downstream of the intake? 16 BOB BUTERA: That's undetermined right now. 17 BRAD ZUBECK: If you wouldn't mind, please 18 state your first and last name just for the record. 19 DAVID PEARSON: My name is David Pearson. And 20 to be fair, I live in that bottom red block next to 21 Falls Creek. 22 BOB BUTERA: Right. Undetermined at this 23 point. Actually, as the designers, we'd like to know 24 that answer, too, because that's what our next piece of 25 work is very contingent upon, is that component of it, PENINSULA REPORTING 110 Trading Bay Drive, Suite 100 907/283-4429 Kenai, Alaska 99611 18f4c299-a95c-4869-b691-84081 fed9c33 HYDROELECTRIC PROJECT 11/12/2009 Page 17 1 because it affects how we design our intake and how we 2 design our conveyance system. 3 And I think I'll leave that to John. Are you 4 going to talk more about that in the fisheries after 5 this? 6 JOHN MORSELL: Probably not at this point. 7 BOB BUTERA: Then maybe -that's as far as I 8 know at this point. We're waiting on that answer 9 ourselves. 10 MARK LUTTRELL: My name is Mark Luttrell, 11 L-u t-t-r-e-1-l, here in Seward. What sort of 12 information do you need to know to make the decision 13 about how much water you would leave in Falls Creek? 14 BOB BUTERA: Well, I think some fishery 15 studies were done through this summer and there's more 16 to come. I think it's a balancing act between the value 17 of what those fisheries are and the value of --and 18 whether it's even possible to keep water in there. 19 BRAD ZUBECK: It will show up later as an 2o issue, but that's, for instance, a comment that you 21 might ask FERC. Hopefully we'll answer it tonight 22 through the course of the evening, but it's a good 23 question. 24 RAE WICKARD: Rae Wickard (ph). What is the 25 purpose of routing water from Falls Creek over to Grant PENINSULA REPORTING 110 Trading Bay Drive, Suite 100 907/283-4429 Kenai, Alaska 99611 18f4c299-a95c-4869·b691·84081 fed9c33 HYDROELECTRIC PROJECT 11/12/2009 Page 18 1 Lake? Is there not enough water in Grant Lake? 2 BRAD ZUBECK: There is. But as Bob alluded 3 to, the more water that you can run through the 4 powerhouse, the more energy you can produce. So it's, 5 again, the balancing act of how much water do we have to 6 have to support fisheries both in Falls Creek and Grant 7 Creek and how much can we use to produce power. So the 8 studies will determine that for us. 9 Sir? 10 BOB ATKINSON: My name is Bob Atkinson. So if 11 you do this pipe thing from Falls Creek, you're going to 12 have two big clearings across the side of the mountain, 13 then, one for the road and one for the pipeline? Is 14 that right? 15 BOB BUTERA: No. That red line that's there 16 is very conceptual in nature. We don't have accurate 17 topography for that area yet. So the pipeline is 18 constrained because we want it to flow by gravity to the 19 extent possible. So it would drive where the --where 20 it would be. But it's possible that the road could 21 parallel it. So we don't know that at this point. 22 Ideally, they'd be together, from my perspective. 23 BRAD ZUBECK: Sir? 24 PAUL SHADURA: Paul Shadura. I'm just kind of 25 looking at that conceptual map there. If we look at the PENINSULA REPORTING 110 Trading Bay Drive, Suite 100 907/283-4429 Kenai, Alaska 99611 18f4c299-a95c~869-b691-84081fed9c33 HYDROELECTRIC PROJECT 11/12/2009 Page 19 1 powerhouse, are we to assume that that section from the 2 powerhouse to Grant Lake would have no water in it? 3 BOB BUTERA: This section right here? 4 PAUL SHADURA: Towards the Grant Lake side. 5 BOB BUTERA: Upstream? 6 PAUL SHADURA: Uh-huh. 7 BOB BUTERA: Our assumption right now in our 8 design and in power estimates is that there is no water 9 in that creek in that section. We're not leaving water 1 10 in it. It's a steep section. It's steep with rapids, 11 big cobbles. It's not great fish habitat. There has 12 been some fish found in the lower end. It's very 13 difficult to find out how many fish might be in there 14 because we just can't get in there. But we're --I 15 don't want to speak for John, but from what I've been 16 hearing, the habitat value of it isn't that high. 17 JOHN MORSELL: There are still some 18 significant questions as to really what the habitat 19 value is. 20 BOB BUTERA: Right. 21 JOHN MORSELL: So that would be one of the 22 goals of studies to come. 23 JON DEACON: My name is Jon Deacon. I live 24 right at the end of the road on a state mining claim 25 that's right next to Falls Creek down the Trail Lakes '' PENINSULA REPORTING 110 Trading Bay Drive, Suite 100 907/283-4429 Kenai, Alaska 99611 18f4c299-a95c-4869·b691-84081fed9c33 HYDROELECTRIC PROJECT 11/12/2009 Page 20 1 Road. 2 BOB BUTERA: Right there? 3 JON DEACON: No. All the way up past the red 4 blocks. Before you make the left the road that 5 you're going to use, the mining road, I live right where 6 the road --Trail Lakes Road, one half a mile off of the 7 Seward Highway to the west right where the creek cuts 8 across. I 9 My question basically is: There's a number of 10 us that get our drinking water from there. If you end 11 up using the water out of that stream, what will people 12 do that live there for their drinking water? 13 BOB BUTERA: Good question. And we didn't 14 know that. 15 BRAD ZUBECK: Ma'am? 16 ADRIENNE MORETTI: My name is Adrienne 17 Moretti. Is the project still considered viable without 18 the Falls Creek intake part? Without the Falls Creek 19 half of it, would the project still be worthwhile, I 20 guess? 21 BRAD ZUBECK: We think so, yes. 22 JJ KAIZER: JJ Kaizer, Crown Point. 23 BRAD ZUBECK: I didn't catch the name. 24 JJ KAIZER: JJ Kaizer, Crown Point. 25 BRAD ZUBECK: Thank you. PENINSULA REPORTING 110 Trading Bay Drive, Suite 100 907/283-4429 Kenai, Alaska 99611 18f4c299-a95c-4869-b691-84081fed9c33 HYDROELECTRIC PROJECT 11/12/2009 1 Page 21 JJ KAIZER: One of the most intrusive parts of 2 this project seems to be going from Falls to Grant. 3 Given the amount of the loss of glacial ice up Falls 4 Creek Valley, which we can calculate right now to 5 approximately eight million cubic feet in the last 12 6 years, can you tell me when Falls Creek will become 7 seasonal? 8 BOB BUTERA: I think it's already seasonal. 9 And basically the water from Falls Creek would be --a 1o standalone project on Falls Creek would not be a viable 11 project because it is too seasonal. So you'd have big 12 heaps at one time and then hardly any flow at another 13 time, and I'm sure the people that get their water from 14 it can tell you that. 15 But we look at it as a project that would take 16 the water and put it into Grant Lake so it can be stored 17 so it can be used with more seasonality. Does that make 18 sense? 19 JJ KAIZER: Of course. 20 BRAD ZUBECK: Yes, sir? 21 WILL BRENNAN: My name is Will Brennan. I 22 also live on Falls Creek Road. I'm wondering about the 23 proposed road. At what point are you planning on coming 24 off an existing road? I mean, where in relation to the 25 existing road is that? Do you have an idea of where -- PENINSULA REPORTING 110 Trading Bay Drive, Suite 100 907/283-4429 Kenai, Alaska 99611 18f4c299-a95c-4869-b691·84081fed9c33 HYDROELECTRIC PROJECT 11/12/2009 Page 22 1 do you have a survey line or a flag line up there that I 2 can go look at? 3 BOB BUTERA: It's right about the 800-foot 4 elevation, if that helps. But, no, we don't have any 5 flagging up there at all. It's all a pretty concept 6 level. We haven't surveyed. We haven't --we're just 7 working off existing maps. 8 BRAD ZUBECK: We have done some survey work on 9 the Grant Creek side, powerhouse, and intake areas. We 10 haven't done survey work on the Falls Creek Road. It's 11 a fairly well-established road and fairly visible from 12 aerial photography and mapping. And so I'm pretty 13 confident that the yellow line that you see on the map 14 there probably follows that four-wheel drive, ATV, 15 existing mining road. 16 WILL BRENNAN: Yeah, I'm wondering about where 17 the red line is. Do you know where -do you have an 18 idea where it's going to tie in on the yellow line? 19 BRAD ZUBECK: I think, as Bob indicated, the 2o intake was proposed at about 800 feet. And just roughly 21 speaking, Grant Lake is at 700 feet, so by gravity it 22 would stay within those two contours. 23 Any other questions before we move on? 24 MATT GRAY: Matt Gray. Did I hear there's two 25 kind of dam structures involved? PENINSULA REPORTING 110 Trading Bay Drive, Suite 100 907/283-4429 Kenai, Alaska 99611 I 18f4c299-a95c-4869-b691-84081 fed9c33 HYDROELECTRIC PROJECT 11/12/2009 Page 23 1 BRAD ZUBECK: There would be an intake 2 structure at Falls Creek, if that were to be the option 3 pursued, and there would also be a diversion structure 4 intake, really just a dam to allow water to be taken 5 into the intake structure, yes. 6 MATT GRAY: But I was actually referring to 7 just on Grant Lake. 8 BOB BUTERA: Just one at Grant. 9 MATT GRAY: Just the tower and the dam? 10 BRAD ZUBECK: The intake structure and the 11 dam, if you will. 12 Mr. Cooney? 13 MIKE COONEY: Mike Cooney, Moose Pass. 14 Without the Falls Creek portion of this project, what 15 would you estimate the power of production to be with 16 only the Grant Creek Project suggested? It's about four 17 and a half megawatts now. What would it be without the 18 falls? 19 BOB BUTERA: It would still remain as a four 20 and a half megawatts project, which would be its maximum 21 capacity, but the annual amount of power you got out of 22 it would be less. 23 MIKE COONEY: Can you quantify that somehow? 24 BOB BUTERA: I don't have the -- 25 BRAD ZUBECK: About 19 gigawatts more of PENINSULA REPORTING 110 Trading Bay Drive, Suite 100 907/283-4429 Kenai, Alaska 99611 18f4c299-a95c-4869-b691-84081 fed9c33 HYDROELECTRIC PROJECT 11/12/2009 Page 24 1 energy. 2 MIKE COONEY: Thank you. 3 BRAD ZUBECK: Yep. 4 With Falls Creek it's just over 23.4, and 5 those are estimates. 6 Time for one more question. Mr. Gray? 7 MATT GRAY: I just wanted to confirm, is the 8 lake elevation fluctuation still at plus 10 to minus 25? 9 BRAD ZUBECK: It's about a 30-foot lake level 10 fluctuation, yes, it is. 11 BOB BUTERA: But it's about a plus 10 and 12 minus 20 to get the 30. 13 BOB ATKINSON: Bob Atkinson again. Any 14 possibility that the power line coming out of there 15 could be buried? 16 BRAD ZUBECK: Absolutely. It's just shown as 17 a more or less straight line. And I might mention that 18 visual studies, esthetic studies, if you will, are a 19 part of what we would look at. And very straight 20 transmission line corridors like that are probably 21 objectionable. And so we would probably look to put 22 some switchbacks in that possibly so that you don't look 23 down a long sight line, a long transmission line 24 corridor. 25 The other question somebody made a comment PENINSULA REPORTING 110 Trading Bay Drive, Suite 100 907/283-4429 Kenai, Alaska 99611 18f4c299-a95c-4869-b691-84081fed9c33 HYDROELECTRIC PROJECT 11/12/2009 Page 25 1 about --and maybe it was you --about the ability to 2 see a cut on the hillside. And where it's perpendicular 3 to the road system, they're much easier to see. Where 4 you're parallel on the road system, they're much more 5 difficult to see from the road. 6 And you are probably very familiar with this 7 area. And driving down the Seward Highway, it's very/ 8 very difficult to see most of the project area from the 9 highway system. But we'll be studying esthetic impacts 10 as part of the resource studies. 11 Thank you very much, Bob. 12 AMANDA PREVEL-RAMOS: I'm Amanda Prevel-Ramos 13 with HDR, and I'm going to talk to you about existing 14 information starting with fisheries. And that's just 15 another day at the office this summer. 16 There's been a lot of work done at Grant Lake 17 and Grant Creek, including what we did this summer to 18 look at fisheries resources. What we did this year was 19 we looked at juvenile fish, resident fish, such as Dolly 20 Varden and rainbow trout and adult salmon. And then 21 also we conducted the first year of an in-stream flow 22 study to look at changes in characteristics of fish 23 habitat based on changes in the flow. And the studies 24 of fish were to add to the existing body of information 25 on fish resources. PENINSULA REPORTING 110 Trading Bay Drive, Suite 100 907/283-4429 Kenai/ Alaska 99611 18f4c299-a95c-4869·b691-84081fed9c33 HYDROELECTRIC PROJECT 11/12/2009 Page 26 1 So as I said, there is already a little bit 2 of -well, more than a little bit --quite a bit of 3 information from the '60s and the '80s conducted by 4 different resource agencies as well as by previous 5 applicants for developing a hydro project at Grant Lake. 6 All of this existing information, including what was 7 gathered this summer, is summarized in the preliminary 8 application document that you guys can find on the Kenai 9 Hydro web site. 1o So Bob kind of went over the project area with 11 you already. I'll just point out that the purple areas 12 on that map are the areas that we worked in this summer. 13 So looking here, HDR went through this summer and 14 actually we reestablished study reaches that were 15 started out by the group that studied the creek in the 16 '80s. 17 So reach one through reach four is basically 18 the part that we were talking about before that would be 19 below the powerhouse at the red triangle right there. 20 And then it's mostly that's the best fish habitat, 21 and primarily it's fast water habitat. 22 Reach five is -you get into more of that 23 cascade habitat. There's less fish present. Reach six 24 is basically an extension of the lake ecosystem. And 25 I'll just point out also that the Alaska Department of PENINSULA REPORTING 110 Trading Bay Drive, Suite 100 907/283-4429 Kenai, Alaska 99611 18f4c299-a95c-4869·b691-84081fed9c33 HYDROELECTRIC PROJECT 11/12/2009 Page 27 1 Fish & Game has placed a marker in their anadromous fish 2 catalog that says that fish do not pass above that green 3 dot. They call it anadromous fish barrier. 4 So at Grant Lake, this summer and in previous 5 investigations, we found sticklebacks and sculpin. No 6 one has found trout, Dolly Varden, or salmon in the work 7 they have done up there or in the small streams that 8 actually feed into the Upper and Lower Trail Lakes. 9 In 2009 we resampled the sites that were 10 sampled in an extensive effort in the '80s. And we also 11 sampled extra sites that we thought looked likely to -- 12 would be good spots for finding fish and did not find 13 any salmon, trout, or Dolly Varden in our traps or nets. 14 In Grant Creek there are runs of sockeye, or 15 red salmon; chinook, or king salmon; and coho, or silver 16 salmon. And ADF&G has designated the lower eighth of a 17 mile as anadromous fish habitat. 18 Estimates of the number of spawning salmon in 19 the creek vary from 400 to 2500 sockeye, 33 to 230 20 chinook, and 55 to 300 coho. And that's based on many 21 years of different kinds of data. So ADF&G has gone up 22 there and done foot surveys. We did foot surveys this 23 summer. The previous investigators in the '80s and back 24 in the '60s did other foot surveys. So it's coming from 25 a lot of different studies, those numbers, and reflects PENINSULA REPORTING 110 Trading Bay Drive, Suite 100 907/283-4429 Kenai, Alaska 99611 18f4c299·a95c-4869·b691-84081fed9c33 HYDROELECTRIC PROJECT 11/12/2009 Page 28 1 an annual variation in the fish runs. 2 So in 2009 we also, as I mentioned, looked at 3 juvenile salmon. And in the lower reaches there are 4 more scattered slow-water habitats where juvenile salmon 5 can rear. Most of these are places where small fish are !< 6 seeking refuge from very fast water currents. And the 7 kinds of --examples of these kinds of habitat include 8 undercut banks, side channels, and backwater areas. 9 And so within these areas we find the most 10 abundant are juvenile, chinook, and coho. And most of 11 the fish that we found in our traps were fry or younger 12 than a year, which indicates that fish do not move into 13 Grant Creek to rear there from other areas and also that 14 they probably do not overwinter in Grant Creek. 15 And in 2009 we also looked at resident fish, 16 such as Dolly Varden and rainbow trout. We found that 17 Dolly Varden were the most abundant fish overall and 18 that all ages were all age classes were present. 19 Adult and subadult rainbow trout were also present and 20 were pretty common. 21 And so we also did some recognizance level 22 work at Falls Creek. It has not had as much work done 23 in the past as Falls -as Grant Creek and Grant Lake. 24 But ADF&G has designated the lower one-third of a mile 25 as anadromous fish habitat. PENINSULA REPORTING 110 Trading Bay Drive, Suite 100 907/283-4429 Kenai, Alaska 99611 18f4c299-a95c-4869·b691-84081 fed9c33 HYDROELECTRIC PROJECT 11/12/2009 Page 29 1 In 2009 when we went out and did recognizance 2 minnow trapping/ we found only Dolly Varden and we found 3 no adult salmon. We actually did foot surveys of the 4 same frequency/ so every 10 days/ that we did on Grant 5 Creek. So we did both creeks in tandem on the same days I' 6 every 10 days. 7 I'll be available to answer questions more in 8 depth about fish on Grant Creek afterwards or after the 9 end of John's segment. John is going to talk a little 10 bit more about fish. 11 JOHN MORSELL: Thanks 1 Amanda. 12 I'm John Morsell. I'm helping to coordinate 13 some of the study programs and make sure that they 14 answer the questions that need to be answered for the 15 FERC process and the kinds of things you folks are most 16 interested in. 17 As Amanda has indicated/ Grant Creek 1 while 18 it's fairly short 1 has substantial fish habitat value. 19 And we suspect that there's going to be quite a bit of 20 interest and concern in the fish in Grant Creek. 21 So some of the specific issues that we've 22 identified are listed on this slide. For example, you 23 know 1 the potential effects of increased lake level 24 fluctuation on Grant Lake fish resources; potential 25 effects of the project intake structure on the Grant PENINSULA REPORTING 110 Trading Bay Drive/ Suite 100 907/283-4429 Kenai, Alaska 99611 18f4c299-a95c-4869·b691·84081 fed9c33 HYDROELECTRIC PROJECT 11/12/2009 Page 30 1 Lake fish; potential effects of changes to the seasonal 2 flow regime on the abundance and distribution of fish in 3 Grant Creek. 4 This third item is probably the big one, the 5 one that most people are going to be concerned about, 6 what's going to happen to the fish as the flow changes. 7 Also, another potential issue has to do with what the 8 effects of flow changes might be on the movement of 9 materials from upstream to downstream within Grant Creek 10 if the flow regime is changed. Salmon spawning areas 11 often depend on a replenishment of gravel within their 12 spawning areas and they can be detrimentally affected by 13 sediment deposition, so this is another issue that's 14 worth looking at. 15 Additionally, we're going to look at the 16 overall --we proposed to look at the overall 17 productivity of Grant Creek as indicated by the 18 abundance of aquatic insects and algae, sort of an index 19 of productivity. 20 Another potential issue has to do with the 21 effects of construction activities on fish habitats. 22 Most of these are sort of temporary impacts due to 23 disturbance, erosion, sedimentation, and so forth that 24 occurs during construction. 25 And moving to Falls Creek we have the same PENINSULA REPORTING 110 Trading Bay Drive, Suite 100 907/283-4429 Kenai, Alaska 99611 I 18f4c299-a95c-4869-b691-84081 fed9c33 HYDROELECTRIC PROJECT 11/12/2009 Page 31 1 sort of set of questions, what's the potential effect of 2 a reduced flow in Falls Creek on the distribution of 3 fish. 4 And then finally we have the whole question of 5 when you alter the access to an area, you can increase 6 the potential human usage and how is this increased 7 recreational fishing opportunity going to affect the 8 fish resources. 9 So currently we have a whole set of studies 1o that are currently proposed. And most of these are 11 continuations of studies that were already started in 12 2009. The studies that will be proposed will be more 13 precisely focused on issues partly resulting from the 14 feedback we get from you folks. 15 Anyway, we're going to continue to look at the 16 Grant Creek salmon spawning distribution and abundance 17 as well as the resident and rearing fish distribution. 18 We're also going to do a little better job of looking at 19 the specific aquatic habitats within Grant Creek, map 20 the habitats and try and determine what the critical 21 factors are that make fish use these particular 22 habitats. And this feeds into the in-stream flow study, 23 which is the next item. 24 We've had several technical working group 25 meetings to discuss potential approaches to in-stream PENINSULA REPORTING 110 Trading Bay Drive, Suite 100 907/283-4429 Kenai, Alaska 99611 18f4c299-a95c-4869·b691·84081 fed9c33 HYDROELECTRIC PROJECT 11/12/2009 Page 32 1 flow study on Grant Creek. At the last meeting we 2 proposed an approach, which we seemed to have a fair 3 amount of agreement on at looking at potential changes 4 and how they might affect fish habitats and how we might 5 use that to predict what might happen with altered 6 stream flows. 7 And then we have the same --basically the s same studies in Falls Creek. We can do a much more 9 thorough job of looking at the distribution and 10 abundance of fish in Falls Creek, become a little bit 11 more quantitative in trying to figure out how many fish F 12 are in the creek. 13 We plan to do baseline studies of stream 14 critters, mostly to provide sort of a baseline against 15 which future conditions can be compared. These benthic 16 invertebrates and periphyton act as indicator species. 17 They can tell us what kinds of changes that are 18 occurring in the stream. 19 And then similarly we're also proposing to do 20 studies of zooplankton and phytoplankton in Grant Lake 21 related to the productivity of Grant Lake. 22 That's the end of the aquatic resources 23 segment. So we'll be glad to take a few questions. 24 Yes? 25 PAM RUSSELL: Pam Russell. I noticed in your PENINSULA REPORTING 110 Trading Bay Drive, Suite 100 907/283-4429 Kenai, Alaska 99611 18f4c299-a95c-4869-b691-84081 fed9c33 HYDROELECTRIC PROJECT 11/12/2009 Page 33 1 studies there, has it been determined if the water 2 temperature is going to change coming out of that hydro 3 plant when -after it goes from either Falls to Grant 4 and then going through the processes? Is the water 5 temperature going to change after it comes out of the 6 power head? 7 JOHN MORSELL: It depends on the depth of the 8 intake. That's something we're going to be looking at. 9 We'll be talking a little later on about temperature 10 monitoring that we're currently doing. We should be 11 able to model that fairly accurately and pretty much 12 tell exactly what those numbers are going to be. 13 PAM RUSSELL: How long are you going to do the 14 studies that you have proposed now, the fish studies and 15 everything? 16 JOHN MORSELL: Well, I think currently the 17 studies --well, it depends on how the project schedule 18 proceeds, but I think the intent is to have one full 19 year -one more full year of studies. 20 Yeah? 21 PAUL SHADURA: Paul Shadura. I've got a 22 temperature question/ since that was identified in some 23 of the previous studies. It's not so much the change in 24 the ambient temperature but the change in the 25 temperatures in the seasonal situations that I'm curious PENINSULA REPORTING 110 Trading Bay Drive, Suite 100 907/283-4429 Kenai/ Alaska 99611 18f4c299-a95c-4869-b691-84081fed9c33 HYDROELECTRIC PROJECT 11/12/2009 Page 34 1 about. What kind of analysis or study are you designing 2 to understand what that would be? 3 JOHN MORSELL: Well, we are and we'll continue 4 to take continuous temperature measurements in both 5 Grant Lake, which includes a profile, a depth profile of 6 temperatures, as well as in Grant Creek. And after 7 the -after we have the project operating components 8 nailed down, we can just do a temperature balance 9 modeling. And we should be able to figure out pretty 10 closely what's going to happen at any time of the year 11 as far as the temperature is concerned. 12 PAUL SHADURA: If I can follow up just once. 13 So that would give you an idea of what's occurring at 14 this point. So am I too far-reaching to ask you what 15 you would do to control the temperature changes within 16 your plant? 17 JOHN MORSELL: Well, if - 18 PAUL SHADURA: Draw from the lake, forget 19 about that part. I'm interested more in what's left in. 20 JOHN MORSELL: Well, there are ways that 21 temperatures can be regulated. If the studies determine 22 that changes in temperature might be detrimental to 23 fish, then the depth of the intake structure could be 24 modified because the lake temperature varies with depth. 25 That would be the primary way that we could mitigate any PENINSULA REPORTING 110 Trading Bay Drive, Suite 100 907/283-4429 Kenai, Alaska 99611 r 18f4c299-a95c-4869-b691-84081 fed9c33 HYDROELECTRIC PROJECT 11/12/2009 Page 35 1 possible changes. 2 Yeah? 3 MIKE COONEY: Mike Cooney, Moose Pass. Could 4 you tell us what species of fish are documented in the 5 Fish & Game anadromous catalog for Falls Creek and also 6 if there is any credible information to suggest that 7 king salmon, chum salmon 1 might exist in Falls or Grant B Creek? 9 AMANDA PREVEL-RAMOS: I'm not going to try to 10 remember off the top of my head what they are. I know 11 that they do have species of both salmon and I believe 12 probably that Dollies are on there. I know that we have 13 that information in our recognizance report on Falls 14 Creek. And I believe it's also actually included in the 15 interim draft report. There's a summary of existing 16 information in the beginning of that report. So we 17 could definitely find it. 18 JOHN MORSELL: The Fish & Wildlife Service had 19 a weir in Grant Creek for a while, and they did catch a 20 couple of pink salmon and one or two chum salmon. Very 21 small numbers. 22 Anything else? 23 BRAD ZUBECK: Mr. Gray? 24 MATT GRAY: I was just wondering/ that reach 25 number five/ how long is it and could you just recap PENINSULA REPORTING 110 Trading Bay Drive/ Suite 100 907/283-4429 Kenai/ Alaska 99611 18f4c299-a95c-4869-b691-84081fed9c33 HYDROELECTRIC PROJECT 11/12/2009 Page 36 1 what the fishery resources were in that section? 2 AMANDA PREVEL-RAMOS: Well, I don't know off 3 the top of my head how long it is. I can probably find 4 that information for you after the meeting. 5 MATT GRAY: An approximate? 6 AMANDA PREVEL-RAMOS: Yeah. 7 JOHN MORSELL: It's about four-tenths of a 8 mile, I think. 9 AMANDA PREVEL-RAMOS: Yeah. 10 BRAD ZUBECK: The creek itself is about a mile 11 long and the powerhouse is about halfway down the 12 stream, so four-tenths of a mile is probably a pretty 13 good guess. 14 AMANDA PREVEL-RAMOS: What was the second part 15 of that question? 16 MATT GRAY: Just recap the fisheries, you 17 know, documentation. 18 AMANDA PREVEL-RAMOS: I think there are --I 19 know our crew, I believe, saw king salmon in the lower 20 portion, adult king salmon in the very lowest portion. 21 And then, like I said, the anadromous fish barrier is 22 above there. 23 So part of what we're doing -planning to do 24 next year is do a more in-depth study of what is the 25 spawning distribution in that reach. PENINSULA REPORTING 110 Trading Bay Drive, Suite 100 907/283-4429 Kenai, Alaska 99611 I 18f4c299-a95c-4869·b691.S4081fed9c33 HYDROELECTRIC PROJECT 11/12/2009 1 Page 37 JOHN MORSELL: One of the problems is that 2 reach five is almost totally inaccessible without 3 rock-climbing techniques, which they didn't try to get 4 at this year. But that will be part of the plans for 5 upcoming studies will be to get into that region and get 6 a better idea. 7 And there's also tentative plans to do some 8 radiotelemetry work on king salmon to try and figure out 9 what proportion of the total numbers actually end up in 10 that reach five. 11 MIKE COONEY: Mike Cooney, Moose Pass. Are 12 there any plans that study the productivity of Grant 13 Creek in terms of the wild fish that it produces 14 annually, anadromous fish particularly, and how it 15 contributes to the Kenai River water system? 16 JOHN MORSELL: Well, there are no plans 17 currently to do that. That's comments you could 18 suggest. We'll take that into consideration. 19 MARK LUTTRELL: Mark Luttrell from Seward. 2o This may be a question for you, Brad. It's kind of a 21 process question. I've got a copy of the 22 pre-application document that I think you gave to the 23 library here in town. And if I understand it, that's 24 like a collection of what is known about various 25 resources. And my concern is that you guys have created PENINSULA REPORTING 110 Trading Bay Drive, Suite 100 907/283-4429 Kenai, Alaska 99611 18f4c299-a95c-4869-b691-84081 fed9c33 HYDROELECTRIC PROJECT 11/12/2009 Page 38 1 a list of great research questions, questions anyway, 2 but they're not in the pre-application document. So how 3 will the questions that you've created and that the 4 public tonight offers, how will those questions be made 5 public? Where do they fall in the next step of the 6 process? 7 BRAD ZUBECK: Sure. Jenna should have --I 8 stepped out of the room there --the next step, but I'm 9 happy to review them with you again. The next step in 1o the process after taking comments would be to prepare 11 draft study plans that should address the issues that 12 we've identified and the issues that you would be 13 raising over the next 60 days. Those draft study plans 14 would then be issued for public review and for comments 15 and then for --take comments on those as well. 16 We also have the FERC-approved process with 17 early scoping. So FERC would also be involved with 18 identifying and kind of affirming or solidifying what 19 the issues are through their scoping documents. 20 So once these have been reviewed -there's a 21 dispute resolution process in place as well. But we 22 would then, after public comment, finalize plans; if 23 needed, go through any dispute resolution process; and 24 then we would have formal final study plans, if you 25 will, to implement it. And that's a step that at this PENINSULA REPORTING 110 Trading Bay Drive, Suite 100 907/283-4429 Kenai, Alaska 99611 18f4c299-a95c-4869·b691-84081 fed9c33 HYDROELECTRIC PROJECT 11/12/2009 Page 39 1 time we're not ready to launch into. That would be the 2 next step in the process. But we won't be entering into 3 that next step until we secure enough funding to 4 implement what those plans would be. 5 6 7 MARK LUTTRELL: Thank you. BRAD ZUBECK: You bet. DAVID PEARSON: David Pearson, Moose Pass. 8 you plan to do studies considering DO on the lower Do 9 section of the stream and how that will change with the 10 intake versus natural falls? And a second part, which 11 is a simple question. There is an acronym, AEINC. 12 JOHN MORSELL: AEIDC? 13 DAVID PEARSON: Yes. And who would that be? 14 JOHN MORSELL: Well, AEIDC is an organization 15 that's no longer in existence. Arctic Environmental 16 Information and Data Center, and they're now -- 17 JENNA BOROVANSKY: It's a part of UAA. 18 JOHN MORSELL: Anyway, they acted sort of as 19 consultants on some of those earlier studies. 20 DAVID PEARSON: And the first part was DO 21 levels. 22 JOHN MORSELL: We're currently -actually, 23 the next part is going to be water resources, but we are 24 currently measuring DOs in both the lake and the stream. 25 And that will be part of the impact analysis, will there PENINSULA REPORTING 110 Trading Bay Drive, Suite 100 907/283-4429 Kenai, Alaska 99611 18f4c299·a95c-4869-b691-84081 fed9c33 HYDROELECTRIC PROJECT 11/12/2009 Page 40 1 be potential effects. I mean, my first inclination is 2 that there won't be any affect on DO, but hopefully we 3 can get some better information on our studies. 4 JJ KAIZER: Hi. JJ Kaiser again. At one 5 point I have read that Grant Lake will have to be 6 drained in order to aid construction. 7 BRAD ZUBECK: The lake, in order to allow 8 construction of a -an intake structure possibly or a 9 dam itself, could be drained. You could also build 10 copper dams. I mean, it's certainly f - I wouldn't state 11 as a matter of fact that we'd have to drain the lake to 12 build the structure. There are other engineering 13 devices that you can use to keep from draining the lake, 14 build copper dams and that kind of thing. But that's 15 certainly within the realm of possibility. I wouldn't 16 recommend it necessarily at this time, but it's one of 17 those options that would exist. 18 Bob? 19 BOB BUTERA: I don't think I would use the 20 word "drain". I would probably use the word "lower". 21 Because you could aid the construction by lowering the 22 lake somewhat. 23 JJ KAIZER: And that effect on the fish 24 population? 25 BRAD ZUBECK: Well, if we were to propose that PENINSULA REPORTING 110 Trading Bay Drive/ Suite 100 907/283-4429 Kenai, Alaska 99611 18f4c299-a95c-4869-b691-84081fed9c33 HYDROELECTRIC PROJECT 11/12/2009 Page 41 1 as a construction method, we would have to determine 2 what the impact would be. So that's probably worthy of 3 a comment and we'll take so noted to consider impact 4 of a construction method to lower the lake level and 5 what influence that would have. 6 JOHN MORSELL: There would have to be a 7 diversion to keep water in Grant Creek. 8 BRAD ZUBECK: Well, exactly. We would have to 9 have some kind of a bypass that would allow and support 10 fish populations in Grant Creek. We wouldn't drain it, 11 cease flow. We would have to maintain flow in the 12 creek. 13 Mr. Deacon? 14 JON DEACON: How much of the water in Grant 15 Creek/Falls Creek in any of the areas that you'll be 16 getting water from is glacially fed? How much of that 17 accounts on glacial melting? 18 BRAD ZUBECK: You know, I can't answer that 19 question. 20 JON DEACON: The reason I ask, obviously with 21 a hydroelectric project you're looking at some span of 22 life for it, whether it's 30 years, 40 years, whatever. 23 With the glaciers lowering and the water being less and 24 less as we know all over the place, has that yet been 25 looked into that 10 years from now they could run out of PENINSULA REPORTING 110 Trading Bay Drive, Suite 100 907/283-4429 Kenai, Alaska 99611 18f4c299-a95c-4869-b691-84081fed9c33 HYDROELECTRIC PROJECT 11/12/2009 Page 42 1 the glacial melt and therefore the water would no longer 2 be available to run the project? 3 BRAD ZUBECK: I believe that the watershed 4 area would collect rain or snowfall naturally. We have 5 not studied whether or not these glaciers -the glacial 6 streams are receding, the glaciers are receding, so that 7 it might be a significant problem, but we'll note that 8 as a potential study topic. 9 MIKE COONEY: Mike Cooney, Moose Pass. I 10 noticed that in the previous discussion there's plans 11 that study the impacts of road construction and other 12 infrastructures constructed on fisheries. But are there 13 any plans to monitor or assess long-term fish habitat 14 impacts as a result of that road? Because it's going to 15 have to slope right into Grant Lake for about a mile or 16 so. Potentially there could be some water quality 17 issues associated with that, I would think. 18 JOHN MORSELL: That would be part of the 19 environmental assessment done by FERC. I'm not sure 20 whether that would require a separate study or not, but 21 certainly that would be taken into consideration. 22 Yeah? 23 TOM BARNETT: Tom Barnett, Moose Pass. To 24 kind of follow up on John's question a little bit real 25 quick. To kind of rephrase that, then, is the volume PENINSULA REPORTING 110 Trading Bay Drive, Suite 100 907/283-4429 Kenai, Alaska 99611 •••• 1 Bf4c299-a95c-4869-b691-84081 fed9c33 HYDROELECTRIC PROJECT 11/12/2009 Page 43 1 that you're anticipating to pull out of Falls Creek, are 2 you then just basing that on annual snow and rainfall? 3 BRAD ZUBECK: I think we'll get to the 4 hydrology data. And probably a better way to answer s that is we have quite a history of hydrology 6 information. Some from 1948 to '58, I believe it is. 7 So we do have -and the recent data we have 8 collected --some longer term data to look at that would 9 give us the sense that the watershed is reliable and the 10 flows are reliable. 11 TOM BARNETT: But that's based on --that's 12 going to be based on the longer you --the longer 13 time period that you base that data on, that skews it in 14 not a way that you really want it to skew. If you take 15 a look at -just look at the Exit Glacier and how far 16 that's dropped back every year since --you know, you 17 say decades. 18 So you're actually going to want to look at 19 the shorter term because that's going to tell you more 20 realistically what volume you have available, especially 21 when you take a look at -if you've been around there 22 long enough and have seen the recession of the glaciers 23 in that area, then you -you know, if you're going to 24 be conservative, you base it on what you know you're 25 going to get every year in terms of the snowfall and PENINSULA REPORTING 110 Trading Bay Drive, Suite 100 907/283-4429 Kenai, Alaska 99611 18f4c299-a95c-4869-b691-84081 fed9c33 HYDROELECTRIC PROJECT 11/12/2009 Page 44 1 rainfall as opposed to what's collected over centuries 2 and you're slowly melting off or now more rapidly 3 melting off. 4 I think you skew the data the wrong way if you 5 use a longer time period. 6 BRAD ZUBECK: The comment is noted and we'll 7 trust our engineers to make and use their best 8 engineering judgment to design the project. But thank 9 you for the comment. 10 JOHN MORSELL: I guess we'll move on to water 11 resources and we'll talk a little bit about some of the 12 things that these questions have brought up. 13 Looking specifically at hydrology, there's 14 substantial existing information, although as the case 15 with most Alaska projects, it's not long enough. We'd 16 sure like to have more data. 17 What we have for Grant Creek is 11 years of 18 continuous stream gauge data from 1947 to '58. And then 19 for Falls Creek, the data aren't quite so good. There's 20 only one summer's worth of continuous measurements and 21 then there are a bunch of other instantaneous discharge 22 measurements that have been made over the years. There 23 was one feasibility study that was done by EBASCO in 24 1987 that modeled a lot of this hydrological data and 25 kind of put it all together. PENINSULA REPORTING 110 Trading Bay Drive, Suite 100 907/283-4429 Kenai, Alaska 99611 I I I 18f4c299·a95c~69·b691-84081fed9c33 HYDROELECTRIC PROJECT 11/12/2009 Page 45 1 And in addition to these older studies, HDR 2 installed stream gauges in both Grant and Falls Creek in 3 the spring of 2009, so that's out there collecting 4 continuous data now. 5 As far as the general hydrologic 6 characteristics of the Grant Lake watershed --well, we 7 don't have that map. Anyway, this relates to some of 8 the quick questions that were just asked. This is a 9 hydrograph, which gives the average flow over the course 10 of the year for that 11-year continuous monitoring 11 period. 12 And you can see that during breakup, flow 13 increases very quickly due to snow melt and then 14 gradually begins to taper off but stays high for quite a 15 while during the summer because of glacial melt in the 16 latter part of the summer and then it gradually declines 17 through the fall and early winter except for some peaks 18 where summer -fall storms add large quantities or a 19 sudden influx of water. 20 And then during the winter, the flow goes way 21 down to something like 25 CFS. And most of that is what 22 the hydrologists call base flow, which is the result of 23 groundwater flowing into the stream, basically springs, 24 keeping the stream going. 25 So the project proposes to use some of the PENINSULA REPORTING 110 Trading Bay Drive, Suite 100 907/283 4429 Kenai, Alaska 99611 18f4c299·a95c-4869·b691-84081fed9c33 HYDROELECTRIC PROJECT 11/12/2009 Page 46 1 water from this upper part of the hydrograph. 2 Moving on to water quality. Some of the 3 existing information. There have been various studies 4 that have looked at water chemistry and temperature in 5 the '60s and the '80s. There's quite a variety of 6 information, both from Grant Lake and Grant Creek. And i : 7 then HDR's ongoing study program has collected seasonal 1 8 water chemistry and continuous temperatures in Grant 9 Creek and Grant Lake at several stations. 10 As far as overall water quality 11 characteristics, I mean, the water is pretty much 12 typical of a cold Alaska drainage that has some glacial 13 input. The nutrient levels are generally low indicating 14 relatively low biological productivity. Turbidity 15 varies with the season. It's moderately turbid in the 16 summer, although Grant Lake tends to settle some of that 17 turbidity out. And then in the winter and spring, the 18 lake clears up somewhat and Grant Creek consequently 19 becomes more clear. 20 And none of the studies of water chemistry 21 have suggested that there's any water pollution or any 22 other unusual conditions in these creeks. 23 As far as water resources issues, we need to 24 look at the potential effects of the project, you know, 25 on water quality and hydrology and water temperature. PENINSULA REPORTING 110 Trading Bay Drive, Suite 100 907/283-4429 Kenai, Alaska 99611 18f4c299-a95c-4869-b691-84081fed9c33 HYDROELECTRIC PROJECT 11/12/2009 Page 47 1 And a lot of this information relates also to fisheries 2 impacts as some of your questions have suggested. 3 We're also looking at the affects of the 4 project construction and operation on water quality and 5 hydrology downstream from Grant Creek, specifically on 6 Lower Trail Lake and Trail Creek. And then how will the 7 physical changes to Grant Creek or Falls creek affect s fish resources. 9 The studies that are currently proposed, the 10 hydrological studies, we're just going to continue the 11 ongoing stream gauging in Lower Grant Creek and Falls 12 Creek. The Grant Creek studies not only provide a 13 baseline record of hydrology, but they also provide 14 input to the proposed in-stream flow study, which 15 requires discharge information. 16 As far as studies that are proposed for water 17 quality, we're going to continue to collect water 18 chemistry data in Grant Creek, Falls Creek, and Grant 19 Lake, you know, to better define the baseline water 2o quality conditions, continue to collect continuous water 21 temperature data in Grant Creek and Falls Creek and 22 Grant Lake to provide input to resource assessment 23 models. 24 And that ends the water resources segment and 25 we have time for a few questions. PENINSULA REPORTING 110 Trading Bay Drive, Suite 100 907/283-4429 Kenai, Alaska 99611 18f4c299-a95c-4869·b691-84081fed9c33 HYDROELECTRIC PROJECT 11/12/2009 Page 48 1 Yes? 2 WILL BRENNAN: Will any of your studies - 3 sorry --Will Brennan. Will any of your studies look at 4 the water quality on Vagt Lake or fish resources there, 5 which at least looking at your map looks like there 6 could be some potential erosion from a new road getting ! 7 put in just above it? 8 JOHN MORSELL: We don't propose to look at 9 Vagt Lake. And I guess it would be the road routing 10 that would determine whether that would need to be done 11 in the future. 12 BRAD ZUBECK: We'll make a note of it. I 13 wouldn't expect that the road would influence Vagt Lake. 14 And you may or may not be aware that most construction 15 projects are designed to mitigate against erosion 16 effects through storm water protection plans, best 17 management practices, and such. So influences there 18 would be temporary and we would seek to have some 19 long-term stabilization graphs and that kind of thing to 20 stabilize any erosion. 21 Sir? 22 TOM BARNETT: On the private property that is 23 along that Falls Creek Road, any studies on the 24 effective --pulling the water off of Falls Creek, how 25 much that will affect the water tables in there in terms PENINSULA REPORTING 110 Trading Bay Drive, Suite 100 907/283-4429 Kenai, Alaska 99611 18f4c299-a95c-4869-b691-84081fed9c33 HYDROELECTRIC PROJECT 11/12/2009 Page 49 1 of the wells that will be affected? 2 BRAD ZUBECK: Groundwater influence, we will 3 have to make a note. Drinking water -folks getting 4 their drinking water from Falls Creek. 5 TOM BARNETT: But its effect on the water 6 table itself, because not everybody gets it directly 7 from the creek itself, but you get it from the water 8 table. 9 BRAD ZUBECK: We'll make a note of it. 10 TOM BARNETT: Because I noticed 11 BRAD ZUBECK: That wasn't in the scope of our 12 study plans right now, but we'll make a note. 13 TOM BARNETT: Will it be part of that or is it 14 just -I don't want to say it as --having been through 15 this on your end of it before, the stock answer is, we 16 will look into it, thank you for your response, we will 17 look into it. Are you saying it will be included or 18 you're not making that commitment? 19 BRAD ZUBECK: Your comment tonight is being 2o recorded. Transcriptions of this event will be supplied 21 to FERC and your comment will be addressed. If it's 22 not, we'll be remiss. 23 BOB ATKINSON: Yeah, Bob Atkinson again. This 24 is probably pretty off the wall, but for the price of a 25 pipeline running from Falls Creek to Grant Lake, what's PENINSULA REPORTING 110 Trading Bay Drive, Suite 100 907/283-4429 Kenai, Alaska 99611 18f4c299-a95c-4869·b691-84081 fed9c33 HYDROELECTRIC PROJECT 11/12/2009 Page 50 1 the drop from Grant Lake to the lower section? This 2 really steep canyon where there's no fish anyway and 3 it's almost impassible, there's no --the cost of 4 building a dam at the bottom of the section, damming up, 5 making another reservoir down at that elevation and 6 using that as a head of water, would that be just 7 totally financially out of the question to actually 8 build a dam there rather than running a pipeline across 9 the side of the mountain? 10 BRAD ZUBECK: I'm not sure I understood your 11 question correctly. As I was thinking while you were 12 speaking, I was envisioning possibly a structure at the 13 base of what we call reach five, the base of that canyon 14 section, that would basically back water up from the 15 bottom of that point basically up to the natural lake 16 level, if you will. 17 BOB ATKINSON: Yeah. It's about a 100-foot 18 deep canyon in there. 19 BRAD ZUBECK: The size and cost of that 20 structure, I'm assuming, would be greater than the size 21 and cost of the structure that we envision up by the 22 natural lake outlet. My guess is 23 BOB ATKINSON: Well, you could do both. I 24 mean, that's the point. 25 BRAD ZUBECK: Pardon? PENINSULA REPORTING 110 Trading Bay Drive, Suite 100 907/283-4429 Kenai, Alaska 99611 18f4c299-a95c~69-b691-84081fed9c33 HYDROELECTRIC PROJECT 11/12/2009 1 Page 51 BOB ATKINSON: That's the point, you'd use 2 both. You would use the natural fall from Grant Lake, 3 4 but then you'd use whatever fall you could get from the 1 reservoir that you get by damming it up. 5 BRAD ZUBECK: We'll note your comment. I'm 6 trusting my engineers who brought me the best possible 7 project. They may have considered that. I don't know 8 for sure. But thanks for the question. 9 RACHEL SCHUBERT: Rachel Schubert from Moose 10 Pass. I was just wondering if your water quality test 11 includes heavy metal testing or for things such as 12 arsenic, maybe residual stuff from mining? 13 JOHN MORSELL: I think the answer is yes. It 14 definitely includes mercury. I don't recall whether 15 arsenic was included or not. 16 AMANDA PREVEL-RAMOS: The earlier studies in 17 the '80s did a battery of water quality constituents. 18 JOHN MORSELL: Yes? 19 JJ KAIZER: JJ Kaizer. Have any studies been 20 done on the impact of the size of the road that will be 21 necessary for the construction materials for the 22 penstock to be built between Falls and Grant Creeks? 23 BRAD ZUBECK: The impact will be considered 24 for the road that would be built. 25 JJ KAIZER: For those who live there as well PENINSULA REPORTING 110 Trading Bay Drive, Suite 100 907/283-4429 Kenai, Alaska 99611 I I ! 18f4c299-a95c-4869-b691-84081fed9c33 HYDROELECTRIC PROJECT 11/12/2009 Page 52 1 as the businesses that are close to there? 2 BRAD ZUBECK: So if I could rephrase your 3 question in terms of a comment, you would like us to 4 study the impact of the road from --for the intake and s pipeline from Falls Creek to Grant Creek on the local 6 residents on 7 JJ KAIZER: I'm sorry. The impact of the road 8 that must be widened or improved to take the amount of 9 traffic and construction materials from the Seward 10 Highway up to the Falls Creek diversion. What kind of 11 studies have been done on the impact of the private 12 property owners there as well as the businesses there? 13 BRAD ZUBECK: We haven't done any studies to 14 date, but we will take your question and comment. Thank 15 you. 16 Yes? 17 TOM BARNETT: That particular road -we're 18 sort of off the water quality. Somehow we veered off of 19 that. We're on another road, so to speak. But going 20 down another path, are the power line tie-in --is the 21 power line tie-in route and at road access, are those 22 virtually etched in stone or are they open to 23 alternatives? 24 BRAD ZUBECK: They're not etched in stone. At 25 this time this is a conceptual design, if you will. And PENINSULA REPORTING 110 Trading Bay Drive, Suite 100 907/283-4429 Kenai, Alaska 99611 I 18f4c299-a95c-4869-b691-84081fed9c33 HYDROELECTRIC PROJECT 11/12/2009 Page 53 1 they will be modified based on the influence of the 2 studies. 3 TOM BARNETT: Another question on that. The 4 easements for those, for the road widening and the s easements actually --the road goes to a certain point. 6 And the easements only go to a certain point in there 7 and then the rest of the road up to the plant and then 8 over to the -up to Falls Creek and then all the way 9 over, that easement and then the easement for the power 10 line, have they already been approved? 11 BRAD ZUBECK: They have not been obtained yet. 12 TOM BARNETT: Do those have to go through a 13 separate process with the Borough? 14 BRAD ZUBECK: It's state-owned land for most 15 of the project facilities, so we would have to pursue 16 acquisition through the state. 17 TOM BARNETT: I didn't realize it was all 18 state. 19 BRAD ZUBECK: Yes? 20 PAUL SHADURA: Paul Shadura again. Being that 21 this is under a five megawatt project and it's mostly on 22 state land, when it comes to the Federal Powers Act, am 23 I hearing that the federal oversight --for instance, 24 NMFS won't be involved in this process? Or am I 25 misinformed? PENINSULA REPORTING 110 Trading Bay Drive, Suite 100 907/283-4429 Kenai, Alaska 99611 18f4c299-a95c-4869-b691-84081 fed9c33 HYDROELECTRIC PROJECT 11/12/2009 1 Page 54 BRAD ZUBECK: No. If you mean NEPA work, 2 environmental assessment? 3 PAUL SHADURA: No. National Fishery Service, 4 the way I understand, on the Federal Powers Act has the 5 oversight on hydroelectric projects and diversion 6 projects. But since there is an exemption --the way 7 I'm understanding it and I'm trying to understand 8 within 2008 that allows the State of Alaska to do that 9 because it's mostly on state lands, is the state 10 superceding the federal oversight from NMFS to do that? 11 And what agency would that be? 12 BRAD ZUBECK: Mr. Prokosch? 13 GARY PROKOSCH: I can answer that. My name is 14 Gary Prokosch. There was a federal bill and a state 15 legislative bill that allowed the state to go into 16 negotiations and come up with a plan to take over the 17 licensing of projects less than five megawatts. It went 18 through about a two-and-a-half-year process and then it 19 was --regulations done and then it went back to the 2o RCA was doing the study, the Regulatory Commission of 21 Alaska, and it was put on a shelf. There's no 22 regulations. There's nothing that's been passed. 23 FERC would in fact be in charge of this 24 project. It would be a FERC-run project. The state 25 would only do its normal permitting for habitat, water PENINSULA REPORTING 110 Trading Bay Drive, Suite 100 907/283-4429 Kenai, Alaska 99611 18f4c299-a95c-4869-b691-84081fed9c33 HYDROELECTRIC PROJECT 11/12/2009 Page 55 1 rights, and that type of thing. But there is no 2 federal -there is no federal or state law right now in I 3 place that allows the state to license the project. 4 PAUL SHADURA: I've read that on NMFS web 5 site, so I'm glad you answered that question. The other ~· 6 question carne with the five megawatt picture. We have a 7 4.5 megawatt producing facility. And as you alluded to, ic 8 under five megawatts, was this plant 9 GARY PROKOSCH: It was the plan, but it 10 never saw the light. 11 PAUL SHADURA: So there's no significance 12 about 4.5 to five rnegs -- 13 GARY PROKOSCH: No. 14 PAUL SHADURA: -in federal oversight limits? 15 GARY PROKOSCH: No. FERC has licensed 16 projects in Alaska where they run power for a hatchery 17 and for a cannery and provide full power for a small 18 village with very, very little water, one or two cubic 19 feet per second. So FERC can do that. And they -but 20 they've exempted larger projects in the State of Alaska, 21 too, but this one was not exempt. It will go through 22 the FERC process. 23 PAUL SHADURA: Thank you. 24 JOHN MORSELL: I might add that NMFS has 25 participated in the --we've had three working group PENINSULA REPORTING 110 Trading Bay Drive, Suite 100 907/283-4429 Kenai, Alaska 99611 18f4c299·a95c-4869·b691-84081fed9c33 HYDROELECTRIC PROJECT 11/12/2009 Page 56 1 meetings to discuss in-stream flow issues, and they have 2 attended all of them. So they have been very much 3 involved in the technical aspects of the project so far. 4 SPEAKER: Has FERC been involved, a 5 representative from 6 BRAD ZUBECK: N0 1 they have not. 7 SPEAKER: Do they have an Alaska office? 8 BRAD ZUBECK: N0 1 they do not. 9 SPEAKER: And they're the lead agency? 10 BRAD ZUBECK: For licensing/ yes. 11 SPEAKER: And also for NEPA scoping? 12 BRAD ZUBECK: I believe so, but I would be ... 13 Mr. Ferguson? 14 JIM FERGUSON: I'm Jim Ferguson with the 15 Alaska Department of Fish & Game. I just thought I 16 might provide another comment 1 given the gentleman's 17 question back here, that National Marine Fisheries 18 Service, Fish and Wildlife Service, and the Alaska 19 Department of Fish & Game will all be involved with this 20 process through the Federal Power Act and through our 21 abilities to comment that are provided under the Federal 22 Power Act. And all three agencies are involved. 23 Further, the U.S. Forest Service, because 24 there's forest service lands involved in the project 25 area, will have an additional authority to put mandatory PENINSULA REPORTING 110 Trading Bay Drive, Suite 100 907/283-4429 Kenai, Alaska 99611 18f4c299·a95c-4869-b691-84081fed9c33 HYDROELECTRIC PROJECT 11/12/2009 Page 57 1 conditions on the license, which is something that in 2 general --there's always exceptions, but in general the 3 other agencies cannot do. So just to let you know kind 4 of how all that works. 5 And regarding FERC's involvement, if they 6 conduct the scoping and they produce the scoping 7 documents, they will actually lead the meetings when the 8 scoping starts. 9 MIKE GLASER: My name is Mike Glaser from Mile 1 10 20. When Grant Lake is considered as a standalone 11 project, are they still anticipating using the Falls 12 Creek Road for access or is another road access being 13 considered if it's just for Grant Lake? 14 BRAD ZUBECK: I believe we would still use the 15 Falls Creek Road for access to the Grant Lake site. 16 JOHN MORSELL: I guess we probably ought to 17 move along. There will be more time for -- 18 BRAD ZUBECK: Mr. Shadura had one more 19 question. Let's get that and then we'll move on. 20 PAUL SHADURA: Just about the funding aspects. 21 There's a lot of proposals, you know, for studies 22 analysis, a lot of comments brought up here, the way the 23 money stretches nowadays, the amount that we see on the 24 table here seems kind of small for what I envision is a 25 complete analysis for the whole project. That's just my PENINSULA REPORTING 110 Trading Bay Drive, Suite 100 907/283-4429 Kenai, Alaska 99611 I 18f4c299-a95c-4869-b691-84081 fed9c33 HYDROELECTRIC PROJECT 11/12/2009 Page 58 1 opinion. Are the companies involved in HEA looking for 2 federal funding for a substantial portion of the final 3 project or some more analysis, or is this totally a 4 private enterprise or a public cooperative enterprise 5 through HEA and CIRI? 6 BRAD ZUBECK: Well 1 I think -- 7 PAUL SHADURA: I'm looking for the funding 8 aspects. Is federal funding involved in this at all? 9 BRAD ZUBECK: At this time, no, there are no 1o federal funds involved in the project. 11 Let's move on. There will be another 12 opportunity --actually, it's time for a break. 13 (Break.) 14 BRAD ZUBECK: Thanks for the questions so far. 15 Just a quick reminder/ the purpose of tonight is to try 16 to identify issues that we might have missed. So if 17 you --some great comments, some great issues. But 18 remember, just try and keep questions for the most part 19 of the meeting to issues that we would require for 2o study. Personal issues, those are all good ones, having 21 to do with where you live and how the project might 22 impact you are great questions and comments. Other 23 questions that you might want to ask us, grab us at the 24 break, grab us on the side/ or we'll have time at the 25 end. If we run out of issue type questions, we'll be .....• PENINSULA REPORTING 110 Trading Bay Drive, Suite 100 907/283-4429 Kenai, Alaska 99611 18f4c299-a95c-4869-b691-84081fed9c33 HYDROELECTRIC PROJECT 11/12/2009 Page 59 1 glad to field other ones. 2 So with that, we'll start again. And thank 3 you for your attention. 4 JOHN MORSELL: We're going to briefly talk 5 about terrestrial resources. I'm standing in for my 6 wife who is conveniently sick. So if I sound kind of 7 stupid, that's why. 8 Well, we have the same array of existing 9 information that we have had for most of the other 1o studies, except that much less attention has been paid 11 to terrestrial resources than to the fish resources. 12 Because of perception, I think that the impact to 13 terrestrial resources will probably not be as sensitive 14 as the fish issues. 15 But some of the previous studies have done 16 some real basic inventories of plants and wildlife. 17 Plus, there's the various resource agencies, especially 18 the Forest Service has been involved in classifying 19 habitats and doing vegetation studies and so forth. All 20 the existing information is summarized in the 21 preliminary application document. 22 Just a real brief rundown on plant community. 23 It's pretty much typical of what you would expect to 24 find on the Kenai Peninsula. There's a mixture of 25 coniferous, deciduous, and mixed forest, shrub lands, PENINSULA REPORTING 110 Trading Bay Drive, Suite 100 907/283-4429 Kenai, Alaska 99611 I 18f4c299-a95c-4869·b691.S4081 fed9c33 HYDROELECTRIC PROJECT 11/12/2009 Page 60 1 grasslands, and tundra and various kinds of wetland 2 habitats. 3 As you all know who live down here, the bark 4 beetle has had a significant effect on a portion of the 5 peninsula, including the Grant Lake Project area. 6 Some of the plant communities of special 7 interest include forested areas with harvestable timber, 8 some of the wetland and riparian communities, and 9 special attention to rare or sensitive plant habitats. 10 And this -actually, it might be a good idea 11 to turn off the lights. This slide kind of provides a 12 good overview of habitat or plant community types. If 13 you use your imagination a little bit, this is Grant 14 Lake up here with Grant Creek flowing down here into the 15 narrows between Upper and Lower Trail Lakes. We 16 obviously have alpine terrain on the mountain side, 17 hillside alder shrub terrain at a little slightly lower 18 elevation. 19 Most of the forest surrounding Grant Lake is 2o coniferous, spruce and hemlock. And then as you drop in 21 elevation somewhat, you get into the mixed spruce and 22 birch forest. And then in lower Grant Creek there 1 s a 23 substantial stretch of pretty much deciduous forest, 24 primarily cottonwoods and birch. And you can also see 25 that there are wetlands, little bogs and various kinds ····· .. 907/283-4429 PENINSULA REPORTING 110 Trading Bay Drive, Suite 100 Kenai, Alaska 99611 18f4c299-a95c-4869-b691-84081fed9c33 HYDROELECTRIC PROJECT 11/12/2009 Page 61 1 of wet communities scattered here and there. 2 As far as wildlife community studies, the 1980 3 study did an inventory and estimated 108 bird species 4 and 34 mammal species. Some of the habitats of 5 particular interest include this area, which is actually 6 the Grant Lake outlet. This is the beginning of Grant 7 Creek right here. This outlet area is shallow. 8 It has emergent --not emergent, but aquatic 9 vegetation and a large part of it remains unfrozen 1o during the winter. And the previous study found that 11 there were a bunch of waterfowl that actually hung out 12 here, primarily dabbling ducks, all winter. So this is 13 considered sort of a project-specific area of some 14 significance. 15 And these are just real general habitat maps. 16 This is potential raptor nesting habitat, possible bald f: 17 eagle nesting, possible cliff nesting raptors, golden 18 eagles and falcons, and rough-legged hawks in some of 19 the steeper terrain. 2o Waterbird nesting habitat is pretty much any 21 place around Grant Lake where the elevation is -the 22 elevation change isn't too steep. So any place where 23 there's a margin along the lake shore is a potential 24 waterfowl nesting. 25 But another area of particular interest is PENINSULA REPORTING 110 Trading Bay Drive, Suite 100 907/283-4429 Kenai, Alaska 99611 18f4c299·a95c~69·b691-84081fed9c33 HYDROELECTRIC PROJECT 11/12/2009 Page 62 1 this delta at the head of Grant Lake where there's a 2 substantial inlet stream, a good-sized delta. This 3 whole area is considered to be potential waterfowl 4 nesting habitat. 5 The same with brown bears. The purple areas 6 delineate potential denning habitat. And the blue areas 7 are primarily foraging habitat. And then you can see 8 that this northeast ridge along the right part of Grant :, 9 Lake is thought to be significant from both a denning 10 and a foraging standpoint for brown bears. 11 Moose range. As you all know, moose are found 12 pretty much wherever they can get to. So this outer 13 line pretty much surrounds everything except the real 14 steep terrain. But, again, we have some habitats of 15 interest in this upper delta area where there's a 16 designated high-value wintering area here and then an 17 expanded wintering and summering area up in here. I 18 Some of these terrestrial resources have 19 special status due to the state or federal regulations. 1, 20 Fish and Wildlife Service has identified two sensitive 21 plant species that might be present in the project area 22 but no sensitive, rare, threatened, or endangered plants 23 have actually been documented in the project area. No 24 threatened or endangered animals occur in the project 25 area. PENINSULA REPORTING 110 Trading Bay Drive, Suite 100 907/283-4429 Kenai, Alaska 99611 18f4c299-a95c~69·b691-84081fed9c33 HYDROELECTRIC PROJECT 11/12/2009 Page 63 1 Fish and Wildlife Service pays special 2 interest to three management indicator species, the 3 brown bear, moose, and mountain goat. And then there's 4 a bunch of other species that are of interest, but less s so. And the State also lists species of special 6 concern, primarily bird species. And these lists of 7 species can be found in the preliminary application 8 document. 9 As far as issues related to terrestrial 10 resources, we have potential effects on the wildlife 11 from overall disturbance due to various kinds of 12 construction and operation activities, such as aircraft 13 operations, heavy equipment, blasting, all the kinds of 14 things that you associate with the development of a 15 project. 16 You also have the potential effects of 17 increased water level fluctuation in Grant Lake, 18 especially in relation to a bird nesting habitat, and 19 the potential effects of changes in flow in Grant Creek 2o and Falls Creek. 21 And you have possible construction effects due 22 to new habitat elimination, effects on wildlife. If 23 fisheries are affected, then some wildlife species may 24 also be affected. 25 And then there's also the potential issue PENINSULA REPORTING 110 Trading Bay Drive, Suite 100 907/283-4429 Kenai, Alaska 99611 18f4c299-a95c-4869-b691-84081 fed9c33 HYDROELECTRIC PROJECT 11/12/2009 Page 64 1 associated with access roads and transmission lines as 2 related to fish and wildlife --to wildlife 3 specifically. 4 The proposed studies as far as plants are 5 concerned. Existing vegetation maps that are available 6 for the area will be refined. There will be a timber 7 stand survey that is suggested. Also proposed, a 8 sensitive plant survey and an invasive plant survey. 9 The Forest Service specifically requires some of these 10 specific kinds of plant studies. 11 And wetlands will also be further delineated. 12 There are existing wetland maps for the project area, 13 but they're fairly large scale and they will have to be 14 refined for the project. 15 Where wildlife is concerned, obviously we need 16 to get a better handle on the distribution and abundance 17 of the key wildlife species, you know, which involves 18 documenting species' composition for birds and mammals. 19 Also classifying and mapping wildlife habitat in the 20 project area, which will occur in conjunction with the 21 plant resources studies. 22 And another study has to do with conducting a 23 bear denning survey, and especially brown bears, which 24 have been a sensitive issue on the Kenai Peninsula in 25 recent years. PENINSULA REPORTING 110 Trading Bay Drive, Suite 100 907/283-4429 Kenai, Alaska 99611 I 18f4c299-a95c-4869·b691-84081fed9c33 HYDROELECTRIC PROJECT 11/12/2009 Page 65 1 That's the end of the terrestrial resources 2 segment. Any questions? 3 Yes? 4 DAVID PEARSON: David Pearson, Moose Pass. 5 With the fluctuation 10 feet coming up, would that 6 pretty much flood that eastern area where you do have it 7 identified as high-valued moose habitat? I guess my 8 question is: What's the change of elevation between the 9 lake and that habitat? 10 JOHN MORSELL: We don't know, but that is 11 something that we definitely need to study and we will 12 study. Obviously 1 we'll flood some of it 1 but I think 13 the study program will probably allow us to delineate 14 the boundaries of the flooded area. 15 Yes? 16 BILL DOWLEY: Bill Dowley, Crown Point. How 17 is this road that goes from Falls Creek to Grant Lake 18 going to affect public access? Is there going to be a 19 public parking area at Grant Lake? Are we going to see 20 boat access there? What type of public access is going 21 to be available on this road? 22 BRAD ZUBECK: Good questions. And that's 23 where we would rely on public input to study the process 24 to determine whether the public is interested in such a 25 facility or not. So that will be one of the things that PENINSULA REPORTING 110 Trading Bay Drivel Suite 100 907/283-4429 Kenai, Alaska 99611 18f4c299-a95c-4869-b691-84081fed9c33 HYDROELECTRIC PROJECT 11/12/2009 Page 66 1 we would like to quantify through study. 2 Is that something that you would be an 3 advocate of? Would you like to see that? 4 BILL DOWLEY: I think it could go either way. 5 It could either be a good thing or it could be a not so 6 good thing. Would I like to have access to the area? 7 Yes. Would I like everybody else to? Not necessarily. 8 BRAD ZUBECK: Sir? 9 TOM BARNETT: To follow-up on his question 10 Tom Barnett again. If you are going to do public 11 access, then the more of that you promote --by allowing 12 public access, you promote more traffic on that 13 particular road, which would definitely affect that 14 subdivision, which kind of leads back to the question 15 asked earlier: Is that road etched in stone? 16 BRAD ZUBECK: Again, a subject for a study. 17 Couldn't tell you at this time. 18 TOM BARNETT: Any thought about moving it to 19 the south side of Falls Creek, crossing Falls Creek, 20 since it has such low volume with the culvert? Avoiding 21 that particular subdivision, you allow for more public 22 traffic if you want it without affecting the quality of 23 life along that road where people do live now. 24 BRAD ZUBECK: So if I understand correctly, 25 you would like not to have that residential street now PENINSULA REPORTING 110 Trading Bay Drive, Suite 100 907/283-4429 Kenai, Alaska 99611 18f4c299-a95c-4869-b691-84081 fed9c33 HYDROELECTRIC PROJECT 11/12/2009 Page 67 1 be an arterial street, kind of a major access, you would 2 like it to be kept a side road and the main access along 3 a different route? 4 TOM BARNETT: I guess what I want is to be 5 kind of pragmatic about things to a certain degree. One 6 is, you guys really desire to have that project. And 7 I'm not going to tell you that I'm objecting to it, 8 because I really don't, but I do see some things that 9 could be detrimental to the lifestyle of the people that 10 do live in that area. So the better way to look at it 11 is a win-win. Move the road away from people that are 12 affected, but it still allows for public access, if 13 that's the goal. 14 Even for the construction side of things and 15 the widening and even the traffic that still will be 16 generated, it's still not a bad idea because it 17 remains it keeps a relatively private community 18 private with limited access. And the more public you 19 make roads --arterial, as you put it the more 20 problems you get with that in terms of break-ins and 21 those sort of things. But if you circumvent that and 22 make it less attractive, it's a win-win. 23 Then the other side of that, too, is --well, 24 I guess it doesn't matter, the power lines going across 25 that. The substation is on the south side of the creek, ... PENINSULA REPORTING 110 Trading Bay Drive, Suite 100 907/283-4429 Kenai, Alaska 99611 18f4c299-a95c-4869-b691·84081 fed9c33 HYDROELECTRIC PROJECT 11/12/2009 Page 68 1 too 1 that existing one. 2 BILL DOWLEY: Are you suggesting that the road 3 follow the power line path approximately/ the access 4 road? 5 TOM BARNETT: No. I'm thinking going up the 6 south side of Falls Creek 1 as opposed to the north side. 7 BILL DOWLEY: So the mining road? 8 TOM BARNETT: Yeah. There's a mining road on 9 that side. Well 10 BILL DOWLEY: Oh, I see. 11 TOM BARNETT: There's the mining road that's 12 farther down at the oh, come on. 13 SPEAKER: Right south of Falls Creek. 14 TOM BARNETT: Just south of Falls Creek. 15 SPEAKER: By the old dump 1 the old Moose Pass 16 dump. 17 BRAD ZUBECK: It's probably a good time for me 18 to mention something that we intended to mention to you 19 guys. As we put these study plans into place, we'll be 2o forming technical work groups --you might have heard 21 that term earlier -for different resource areas that 22 we're talking about tonight. 23 And through the use of our web site 1 we'll 24 have areas that you can select for areas of interest. 25 One of those might be recreational access, which would PENINSULA REPORTING 110 Trading Bay Drive, Suite 100 907/283-4429 Kenai, Alaska 99611 L I 18f4c299·a95c~69-b691~081fed9c33 HYDROELECTRIC PROJECT 11/12/2009 Page 69 1 cover roads and road construction, that kind of thing. 2 So you'll be able to indicate what your area of interest 3 is, sign up for a specific user group or technical work 4 group that can provide further comment and insight on 5 certain elements that interest you. 6 And so as we put together these proposed study 7 plans at some point in the future, we wouldn't seek to 8 do all of these resource-specific comment meetings in an 9 environment like this. We would like to break into 10 smaller groups where people have a particular interest 11 and share those comments. And folks that don't share 12 those same interests don't have to, if you will, suffer 13 through questions that they have no interest in. 14 So these user groups through the vehicle of 15 the web site, you can sign up for and we'll be glad in 16 the study phase to address these kind of issues. 17 And so I appreciate the questions and 18 comments. And rather than get down to the weeds of 19 actually designing the roads, which are great -that's 20 to come --let's just address we need to study road 21 alignments to make best use for public access and maybe 22 to keep residential areas private with concern to maybe 23 public access and vandalism, that kind of thing. 24 So those are all good comments. Keep those 25 up. But, again, we'll have a forum for that in the PENINSULA REPORTING 110 Trading Bay Drive, Suite 100 907/283-4429 Kenai, Alaska 99611 18f4c299-a95c-4869-b691-84081fed9c33 HYDROELECTRIC PROJECT 11/12/2009 Page 70 1 future in these study groups, the technical work groups. 2 JOHN MORSELL: As far as the access issues 3 beyond private property, the state and the Forest 4 Service are obviously going to be real interested and 5 play a big part on exactly what happens on these roads, 6 at the ends of these roads, and so forth. 7 PAUL SHADURA: Currently I don't think this is 8 within the bounds of the Kenai River Special Management 9 Area, but I think that there is some bills and some 10 efforts to include portions of this area so parks would 11 be involved when there is the public access situation. 12 Are we analyzing that situation if that comes to play 13 and what would happen if -- 14 BRAD ZUBECK: We would have to consider that. 15 PAUL SHADURA: parks would be involved in 16 this. 17 BRAD ZUBECK: Yes. 18 PAUL SHADURA: And I just noticed there was a 19 blocked black kind of area in there. Is that to signify 20 a different ownership or would that be the KRSMA area 21 there? It's on your maps. It's kind of shaded. 22 BRAD ZUBECK: I don't believe we have a map of 23 the Kenai River Special Management Area. But the maps 24 that you're probably referring to are land use or land 25 ownership. So I'm guessing that that was probably PENINSULA REPORTING 110 Trading Bay Drive, Suite 100 907/283-4429 Kenai/ Alaska 99611 18f4c299-a95c-4869-b691·84081 fed9c33 HYDROELECTRIC PROJECT 11/12/2009 Page 71 1 Forest Service and state ownership of lands 1n the area 2 as well as private ownership. 3 PAUL SHADURA: Thank you. 4 BRAD ZUBECK: Yep. 5 AMANDA PREVEL-RAMOS: As far as the Kenai 6 River Special Management Area, I think that all 7 tributaries to the Kenai River are a part of that, and 8 so it does apply. 9 PAUL SHADURA: So they already have an 10 overview of the Grant Creek situation? 11 PAM RUSSELL: We've been in -me and Jack 12 have been 1n -- 13 THE REPORTER: I can't hear. 14 BRAD ZUBECK: Pam Russell with State Parks 15 stating that she and Jack have been involved in the 16 process. 17 We'll move on. 18 JENNA BOROVANSKY: Again, this is Sally's area 19 of expertise. Although I do like to recreate, I haven't 20 studied it. 21 And this is recreational and visual resources. 22 It also covers --it's kind of a --this study area will 23 also cover land use, and so it's kind of broader than 24 just recreational and visual. It's land use and kind of 25 the whole human interaction with the area and all the PENINSULA REPORTING 110 Trading Bay Drive, Suite 100 907/283-4429 Kenai, Alaska 99611 18f4c299-a95c-4869-b691-84081fed9c33 HYDROELECTRIC PROJECT 11/12/2009 Page 72 1 parts of that. 2 And there is extensive existing information 3 just like all the other areas. Not quite as much as 4 fish and aquatics, again, but the Forest Service has 5 done some surveys and recreation information. 6 The earlier AEIDC report, which I don't know 7 that anybody has mentioned, is available on the web 8 site. All of this 1980s information is all summarized 9 in you know, if you print it out/ it's that thick. 1o If you look at it on the web, it's a lot of pages. But 11 we have both those available on the web for download if 12 you're interested in some of this historical information 13 on any of the resource areas. And then a summary of the 14 information is in the PAD. 15 So for recreational and visual, just kind of 16 an overview of land use and land use designations in the 17 area. The upper portion of the watershed around the 18 lake is Forest Service/ Forest Service ownership. It's 19 all within a fish, wildlife/ and recreation prescription 20 until you get to the east end of Grant Lake, which is a 21 backcountry prescription. 22 State lands are kind of the lower portion of 23 the project area of the map coming up. And that 24 includes the location of the majority of all the project 1 25 facilities are going to be on State lands. I PENINSULA REPORTING 110 Trading Bay Drive, Suite 100 907/283-4429 Kenai, Alaska 99611 18f4c299-a95c-4869-b691-84081fed9c33 HYDROELECTRIC PROJECT 11/12/2009 Page 73 1 The Bureau has selected some lands between 2 Grant Lake and Upper Trail Lake with use yet to be 3 designated --to be determined. And then there is some 4 private property in the Moose Pass area along the shores 5 of Upper and Lower Trail Lakes and as has been mentioned 6 kind of along that Falls Creek Road. 7 This is the land ownership map. The green is 8 Forest Service. The blue is State lands. And then this 9 is --there's our project facilities and there's Falls 10 Creek. And then the little red spots, a lot of you 11 probably know those. Those are the private lands. 12 So we're mostly dealing with state land and 13 Forest Service prescriptions and management and 14 interaction and management direction. So the studies 15 will be looking at kind of existing resources in 16 management prescription and then kind of predicting 17 changes. 18 So identified trails in the area. The 19 Iditarod Trail traverses the project area. There's 20 several other trails that are either near or within the 21 project area; the Grant Lake Trail, Falls Creek Road, 22 Vagt Lake Trail, Crown Point Mine Road and Trail have 23 all been identified already. 24 Access to the area. Generally, boat in the 25 summer; snowmachine, cross-country skiing in the winter. PENINSULA REPORTING 110 Trading Bay Drive, Suite 100 907/283-4429 Kenai, Alaska 99611 18f4c299-a95c-4869-b691-84081fed9c33 HYDROELECTRIC PROJECT 11/12/2009 Page 74 1 There's no developed trailheads or signs within the 2 project area currently. Use level based on Forest 3 Service work that's been done, it's characterized as 4 light currently in the summer and the winter. That's 5 relative to other areas in the Kenai River watershed. 6 A photo of one of the main trails in the area, 7 the Falls Creek hiking trail. 8 Other recreational uses that are documented 9 and we'll be looking at, hunting and fishing, mining. 10 There are some active mine claims, particularly around 11 Falls Lake and the lower part of --Falls Creek and the 12 lower part of Grant Lake. 13 Access on the Forest Service lands. Motorized 14 travel is permitted in the winter until you get into the 15 backcountry prescription. It is limited to helicopters 16 only. So all that will be taken into consideration when 17 we're looking at that. 18 Scenic designation by the Forest Service right 19 now is considered moderate. And then in the backcountry 20 prescription area it's high. And the scenic features 21 have two scenic features within the project area have 22 been described in Alaska DNR studies; the waterfall at 23 the outlet of Grant Lake as well as the high mountain 24 walls surrounding the lake and the east shore. 25 And then when we're looking at esthetics and PENINSULA REPORTING 110 Trading Bay Drive, Suite 100 907/283-4429 Kenai, Alaska 99611 18f4c299-a95c~69·b691~081fed9c33 HYDROELECTRIC PROJECT 11/12/2009 Page 75 1 visual, the project area actually isn't visible from the 2 Seward Highway or other easily accessible vantage points 3 and trails. That's something that when we get into the 4 study design we'll be looking at more. 5 Here's the cascade below the outlet of Grant 6 Lake, to give you an idea of the esthetics we're looking 7 at. And this is Grant Lake looking east into the 8 backcountry prescription area. 9 So the issues that we're going to be looking 10 at in regard -that we've identified so far in regards 11 to recreation and visual resources, again, we're going 12 to look at the potential effects of the water level 13 fluctuations in Grant Lake; the changes in flow in Grant 14 Creek and Falls Creek on things like recreational 15 access, perception, use; the potential effects of the 16 actual construction of the project and the expansion of 17 the roads; and then looking at the potential effects on 18 recreation if the distribution of the fish change. 19 Again, recreational land use and visual is a 20 lot of interaction between the different resource areas, 21 and so there's a lot of pull from the information you 22 get on the fish, and these things then affect recreation 23 and vice versa. 24 And then also looking at the potential effects 25 of construction and then the maintenance of those access PENINSULA REPORTING 110 Trading Bay Drive, Suite 100 907/283-4429 Kenai, Alaska 99611 I 18f4c299·a95c-4869-b691-84081 fed9c33 HYDROELECTRIC PROJECT 11/12/2009 Page 76 1 roads and transmission lines. And, again, as John 2 mentioned, on the roads, in particular on state lands 3 and Forest Service lands, their management direction and 4 prescriptions are going to have a lot to say about how 5 the roads are managed, considering that the purpose of 6 having it in there is also to allow access for Kenai 7 Hydro to the darn. 8 And then the studies that are planned will get 9 at those effects and questions. We're looking at kind 10 of taking another look at current recreational use. And 11 then they use that data from regional trends as well as 12 the potential project expansion and access and predict 13 trends into the future if the project were constructed. 14 The goal is to understand public use, perception, and 15 the recreational opportunities in the area. And we'll 16 be using U.S. Forest Service methods and designations to 17 classify the studies' results. 18 And then we'll also look at the visual quality 19 of the project area. And that usually involves kind of 20 picking -this is where the work group comes into play 21 with the agencies and the public and people are 22 interested. Usually you pick different key visual 23 observation points and predict what the project 24 what it would --well, you look at what it looks like 25 now and then you predict what it will look like, whether PENINSULA REPORTING 110 Trading Bay Drive, Suite 100 907/283-4429 Kenai, Alaska 99611 18f4c299-a95c-4869·b691-84081fed9c33 HYDROELECTRIC PROJECT 11/12/2009 Page 77 1 you'll see the project facilities. And then you look at 2 public perception of the visual esthetic qualities in 3 the area. And then you also look at land use in 4 general. s And then we're on to questions. 6 JJ KAIZER: Bradley Lake is the name of the 7 Homer Electric Project at Kachemak? 8 BRAD ZUBECK: Actually, it's a state project 9 that Homer Electric operates and maintains it for the 10 Bradley Lake facility. 11 JJ KAIZER: And if I were to be standing at 12 the Russian village that is on the other end of that 13 the other side of that bay at night, what would I be 14 looking at when I'm looking at the hydro project? Would 15 I be seeing that at night? 16 BRAD ZUBECK: You're asking about the Bradley 17 Project or are you asking about the Grant Creek 18 JJ KAIZER: The Bradley Project. 19 BRAD ZUBECK: I would simply be guessing, but 20 the powerhouse may be visible from Homer, say, or the 21 north side of the bay. 22 JJ KAIZER: So it's well lit? 23 BRAD ZUBECK: You know, I really can't speak 24 to that. I don't know. I'm sure there are some lights 25 for security and operations. I'm not sure. I haven't ······· " PENINSULA REPORTING 110 Trading Bay Drive/ Suite 100 907/283-4429 Kenai/ Alaska 99611 18f4c299-a95c~69·b691~081fed9c33 HYDROELECTRIC PROJECT 11/12/2009 Page 78 1 tried to it's not really germane tonight. I'm not 2 prepared to answer that question. 3 JJ KAIZER: And what would I be hearing at 4 that Russian village? 5 JOHN MORSELL: You wouldn't hear anything. 6 JJ KAIZER: You wouldn't hear anything? 7 JOHN MORSELL: No. 8 JJ KAIZER: Okay. All right. So when we say 9 "visual effects", are we thinking of daylight visual 10 effects or are we also looking at how it's going to 11 affect the look of that community at night? 12 BRAD ZUBECK: We can certainly take that into 13 consideration for visual and esthetic impacts to 14 consider what the project would look at night; night 15 pollution, can you see the stars, that kind of thing. 16 JJ KAIZER: It's not an off-handed question 17 because there are a number of businesses in that 18 community that are based on the pristine quality of the 19 area, period. 20 BRAD ZUBECK: Okay. 21 JJ KAIZER: And if we have not considered that 22 as a major issue of this project, we have not considered 23 the people who are going to be impacted by this project. 24 BRAD ZUBECK: I agree. And that's why visual 25 and esthetic resources is a resource that's identified PENINSULA REPORTING 110 Trading Bay Drive, Suite 100 907/283-4429 Kenai, Alaska 99611 I i 18f4c299..a95c-4869·b691·84081 fed9c33 HYDROELECTRIC PROJECT 11/12/2009 Page 79 1 for studying an impact. 2 JJ KAIZER: And how many of those businesses 3 will not exist after such a thing is built? 4 JENNA BOROVANSKY: A part of a standard 5 environmental impact statement is also a 6 socioeconomic impact. 7 JJ KAIZER: You know, I'm sorry to say, dear, 8 I haven't seen a lot of that happening right now. I 9 don't see it up there. Maybe I'm missing something. 10 JENNA BOROVANSKY: Well, we can put it here. I 11 It will be considered in the analysis. 12 BRAD ZUBECK: Valid question. And that's the 13 purpose of the meeting tonight is to take exactly those ~ 14 comments. 15 Sir? 16 TOM BARNETT: The transmission line, as you 17 have it shown there; aboveground, buried? 18 BRAD ZUBECK: Right now it would be an 19 overhead power line, yes. 20 TOM BARNETT: What's the size of the easement ~ 21 and what are the size of the poles? 22 BRAD ZUBECK: Typical easement would be maybe 23 60 feet, 100 feet on the outside, I would guess. 24 Pole heights --Mr. Don Smith? 60-foot? Do 25 you have a wild guess at what the pole height might be? PENINSULA REPORTING 110 Trading Bay Drive, Suite 100 907/283-4429 Kenai, Alaska 99611 18f4c299-a95c-4869-b691-84081fed9c33 HYDROELECTRIC PROJECT 11/12/2009 Page 80 1 DON SMITH: What voltage are we talking? 2 BRAD ZUBECK: Let's say it would be conducted 3 at -well, 69 or 115. Conducted at 115. 4 DON SMITH: Then, yeah, probably a 60-foot 5 pole height. 6 TOM BARNETT: Wood; steel? 7 BRAD ZUBECK: Most likely wood. 8 TOM BARNETT: And that's part of the project, 9 so that is a visible --that will be visible? 10 BRAD ZUBECK: Potentially visible from a boat, 11 for instance, if you were on the lake. Maybe not so 12 visible from the Seward Highway if you're in your 13 vehicle. But, again, that would be an element of the 14 visual -- 15 TOM BARNETT: Well, you're running a straight 16 line right across the Seward Highway, according to that 17 tie-in. So you'd be driving along and you'd look right 18 down it. 19 BRAD ZUBECK: Again, it's drawn that way. I'm 20 fairly certain it probably wouldn't be constructed that 21 way. The visual studies will address the alignment. 22 JENNA BOROVANSKY: I think on that one we even 23 went so far in the pre-application document to state 24 that that will be adjusted. 25 We're just in the steps of --we're PENINSULA REPORTING 110 Trading Bay Drive, Suite 100 907/283-4429 Kenai, Alaska 99611 18f4c299·a95c-4869·b691-84081fed9c33 HYDROELECTRIC PROJECT 11/12/2009 Page 81 1 identifying all the things to be studied now and then 2 the pre-application document has the existing 3 information. And then once we get the studies, then you 4 start to look at essentially tweaking the designs to 5 respond to the studies both in operation of the dam and 6 the esthetics. And then you develop and you finalize 7 the --well, you draft and finalize this application. 8 In conjunction with agencies and the public you develop 9 what are called protection, mitigation, and enhancement 10 measures. It's to protect the resources, mitigate for 11 any impacts, and enhance resources that are already 12 there. 13 And that's the thing that I'm hearing people 14 have noticed is missing from the pre-application 15 document because we're so early. You know, we're out 16 there with the existing information, we get the input, 17 and then together we develop. 18 TOM BARNETT: So you're saying this question 19 has sort of already been addressed a little bit? 20 JENNA BOROVANSKY: We're saying it's already 21 been identified to be addressed, but nobody has the 22 answer of exactly how it will look because it will be 23 figured out. 24 MARK LUTTRELL: I wanted to make one 25 clarification about -- PENINSULA REPORTING 110 Trading Bay Drive, Suite 100 907/283-4429 Kenai, Alaska 99611 I 18f4c299-a95c-4869-b691-84081fed9c33 HYDROELECTRIC PROJECT 11/12/2009 Page 82 1 BRAD ZUBECK: Mr. Luttrell. 2 MARK LUTTRELL: the visuals from the Seward 3 Highway/ for example/ at the -where the current bridge 4 is that's being repaired at the very south end of the 5 Lower Trail 1 at the Vagt trailhead 1 there's that poplar 6 shoreline there. From there you can see the whole 7 industrial nature of the road and the powerhouse and the 8 transmission line. 9 Andr also, a component that I think you would 10 be able to seer and it hasn't been discussed yetr is the 11 surge tank 1 which I understand is sort of like a 12 hydraulic safety valve. But in the pre-application 13 document it's listed as something that would be 110 feet 14 tall, which would be visible. 15 BRAD ZUBECK: That's another placeholder in 16 the document. Maybe I'll let Bob speak to that in terms 17 of options. 18 BOB BUTERA: Basically what that's there for 19 is to absorb transient pressures in the penstock. And 20 it has to be at least as tall as the lake elevation when 21 the water comes in. So we put that in as a placeholder/ 22 but there are other ways to do it. It can be done with 23 valves. It can be done by doing a vertical shaft inside 24 the tunnel. There's other ways. It's a good comment. 25 DAVID PEARSON: David Pearson, Moose Pass . ..... PENINSULA REPORTING 110 Trading Bay Drive, Suite 100 907/283-4429 Kenai, Alaska 99611 I I 18f4c299-a95c-4869·b691-84081fed9c33 HYDROELECTRIC PROJECT 11/12/2009 Page 83 1 This might be a moot point because of the amount of 2 water you 1 re moving, but you haven 1 t addressed Lower 3 Trail Lake and it 1 s effect on ice/ say, if people use 4 that as a fairway for snowmachines in the winter and 5 cross country skiing. And I assume you 1 re pulling the 6 most water in the winter because that 1 s when your demand 7 is, so you 1 re going to be putting -is that going to 8 change the safety on ice on Lower Trail Lake? 9 JENNA BOROVANSKY: That 1 S a good comment. 10 DAVID PEARSON: I mean/ the narrows are kind 11 of sketchy to begin with. Is that going to extend that 12 to Lower Trail Lake? You just had nothing about Lower 13 Trail Lake. And that 1 s probably where a lot of 14 recreation happens as well. 15 JASON AIGELDINGER: Jason Aigeldinger 1 Mile 24 16 and a half. I was looking at your map there on the -- 17 it would be the northeast corner of Lower Trail Lake 18 where there 1 s that private parcel in red there. Those 19 folks do access their property in the winter via 20 snowmachine, in the summer via boat. Can you give us an 21 answer as to how --you know/ how Dave 1 s talking about 22 how is this going to jeopardize the safety of using the 23 ice in that area in the winter months. Are those folks 24 going to be able to get access to their property via 25 your road when and where it 1 s put in? Will they have PENINSULA REPORTING 110 Trading Bay Drive/ Suite 100 907/283-4429 Kenai/ Alaska 99611 18f4c299-a95c-4869·b691·84081fed9c33 HYDROELECTRIC PROJECT 11/12/2009 Page 84 1 access to their property? 2 BRAD ZUBECK: Access for the project features 3 would be only up to the lake and to the powerhouse, for 4 instance. We're not proposing a road down to the mouth 5 of the creek. And so access would be --as you would 6 as they normally get access now, by snowmachine or by 7 boat. And a study, as this gentleman has brought here, 8 might look at ice safety or safety on that lake and how 9 increased flows in the winters might reduce ice 10 thickness or safety in the area. But aside from that, 11 I'm not sure how we could answer the question tonight on 12 how they might access their property. 13 JASON AIGELDINGER: Will they be able to 14 benefit from the power generated by the creek next to 15 their property? 16 BRAD ZUBECK: In a general sense potentially, 17 but they're not in this particular area. The customers 18 are of Homer Electric. The project might provide some 19 ancillary benefit to reducing transmission line losses 20 on the way due --from other generation facilities, say, 21 but those aren't probably things that you're going to 22 perceive or realize recognize as benefits. 23 JASON AIGELDINGER: So right now they use a 24 generator for power and they're going to have 60-foot 25 power lines in their backyard. Will they get a little PENINSULA REPORTING 110 Trading Bay Drive, Suite 100 907/283-4429 Kenai, Alaska 99611 18f4c299·a95c~69·b691-84081fed9c33 HYDROELECTRIC PROJECT 11/12/2009 Page 85 1 taste? 2 BRAD ZUBECK: At this time I couldn't possibly 3 tell you, but if they wanted to get involved in a group. 4 I don't know if there would be a way to provide service 5 to them. So a question might be, could the project 6 bring residential service to residents or cabins in the 7 area? We'll take that as a comment. 8 DAVID PEARSON: David Pearson, Moose Pass. 9 Falls Creek Road, 12 residents, two with power, you're 10 putting a road through it. We're not living there for 11 the power. You're kind of taking what we live there 12 for, so we don't see any of the benefits. That would be 13 another question. Do those residents also get the 14 kickback, say, power to their houses? 15 SPEAKER: What if those residents are fine 16 without power? 17 BRAD ZUBECK: So the question, I think, kind 18 of stands, and it falls all in the same category: Could 19 residents of the area potentially benefit from 20 residential service from the project? 21 DAVID PEARSON: Yes. 22 BRAD ZUBECK: Talk to me afterwards about 23 that. 24 ADRIENNE MORETTI: Adrienne Moretti. And also 25 continuing that out to not just the people that live on PENINSULA REPORTING 110 Trading Bay Drive, Suite 100 907/283-4429 Kenai, Alaska 99611 18f4c299-a95c-4869·b691·84081 fed9c33 HYDROELECTRIC PROJECT 11/12/2009 Page 86 1 that road but all the people of Moose Pass. The people 2 who live there, what are the benefits, I think is a good 3 question to ask here. 4 BRAD ZUBECK: So as Jenna alluded to, there's 5 a socioeconomic impact assessment, or study, as an 6 element of the study program. So we would attempt to 7 quantify what the benefit to the community might be. At 8 this time I would only be speculating at what that could 9 be. I don't know. Economic impact, increased activity, 1o bringing dollars to the community, that kind of thing. 11 TOM BARNETT: Decreased property values. 12 BRAD ZUBECK: Again, a subject for a study. 13 Pros and cons, a socioeconomic study. 14 Sir? 15 BILL DOWLEY: Bill Dowley, Crown Point. To 16 kind of expand on that, I think that what she's getting 17 at, and I'd like to know, too, if when the landslides 18 take out the power at Mile 20-odd, are we going to still 19 have power in our area? 20 BRAD ZUBECK: Good question. Obviously, if 21 you had an avalanche on one side or the other where your 22 power -do you currently get power from Chugach? 23 BILL DOWLEY: I'm at Mile 23. So if there's 24 an avalanche at Mile 20-something below me, our power 25 goes out. Since this is upstream from us and we're tied PENINSULA REPORTING 110 Trading Bay Drive, Suite 100 907/283-4429 Kenai, Alaska 99611 18f4c299-a95c-4869·b691-84081 fed9c33 HYDROELECTRIC PROJECT 11/12/2009 Page 87 1 into the grid, will this give us the ability to maintain 2 power even though it's out below us, south of us? 3 BRAD ZUBECK: If an avalanche separates you 4 from your generation source, wherever that might be, 5 you'll be out of power. If you are nearer to the 6 generation source than the avalanche obstruction, you'll 7 have power, is the best way to answer that. I 8 JJ KAIZER: Where 1s this 4.5 megawatts going? 9 It's going into the grid? I 10 BRAD ZUBECK: It will be going onto the grid. I 11 And again yes, going onto the grid. 12 JJ KAIZER: And does that go to Anchorage and 13 Homer? 14 BRAD ZUBECK: It goes to the grid. 15 JJ KAIZER: Right. 16 BRAD ZUBECK: And on paper it would be owned 17 by Homer Electric. In the electron world, the entire 18 rail belt grid benefits from the generation in that 19 location. 20 JJ KAIZER: And can you tell us at this point 21 what hydro projects are being planned for the peninsula 22 closer to those two main towns? 23 BRAD ZUBECK: The only thing I can speak to 24 are Homer Electric's plans. And I mentioned earlier in 25 the presentation, at this time, we have no other plans PENINSULA REPORTING 110 Trading Bay Drive, Suite 100 907/283-4429 Kenai, Alaska 99611 i 18f4c299·a95c-4869·b691·84081fed9c33 HYDROELECTRIC PROJECT 11/12/2009 Page 88 1 for a hydroelectric facility. This is the only project 2 at this time we're concerned with. 3 Sir? 4 WILL BRENNAN: I have a question about how you 5 go about trying to quantify visuals or esthetics. I 6 mean, personally, my favorite view in Moose Pass is when 7 you go up the trail, you take that left down to the 8 lake. I don't know if you've been up there, but it's 9 beautiful. It's a massive lake that you have to walk 10 to. And it's for us. It's for the people of Moose Pass 11 because there's no trailhead, you have to cross a lake, 12 and you have to know how to cross that lake. 13 I mean, how do you quantify my love for that 14 spot versus your need for power? I mean, yours is 15 quantifiable. Mine, it's all qualitative and I love it, 16 but how do you put that in a chart? 17 BRAD ZUBECK: I personally can't tell you how 18 that happens, but there are folks that -- 19 WILL BRENNAN: You're doing the studies. How 20 are they being conducted, is all I want to know? 21 BRAD ZUBECK: I couldn't tell you exactly how, 22 but I would encourage you to participate in the work 23 group that we'll be conducting that will be involved 24 with the visual and esthetic resource studies so that 25 you will have your influence on that study. That's the PENINSULA REPORTING 110 Trading Bay Drive, Suite 100 907/283-4429 Kenai, Alaska 99611 18f4c299·a95c-4869-b691-84081fed9c33 HYDROELECTRIC PROJECT 11/12/2009 Page 89 1 best I can do for you tonight. 2 JENNA BOROVANSKY: And, sorry, this is 3 something that Sally knows a little bit more about the 4 methods that are used in the group. I mean, that's one 5 benefit of the group, you chose areas that you're going 6 to look at that are potentially visible. 7 And in other projects what I've seen done is 8 you look at photos. You take a photo from a viewpoint 9 and then for a project that doesn't exist yet, you would 10 put renderings and show whether it was visible or not 11 and then you kind of look at it. I can't really -- 12 that's where the study plan development with somebody 13 whose expertise is in this, they work with you to try 14 and assess the potential change from what there is now 15 to what there would be with the project. 16 BRAD ZUBECK: Sir? 17 TOM BARNETT: Any 3-D modeling in the works? 18 BRAD ZUBECK: Can you identify yourself, 19 please? 20 TOM BARNETT: Tom Barnett. Any 3-D modeling 21 in the works for that? Because some of the specific 22 areas that were mentioned before, the Vagt Lake 23 trailhead, spots that Will was talking about, and then 24 the other spots/ I mean, you could truly benefit from 25 that. But what I'm kind of hearing is that it's not on PENINSULA REPORTING 110 Trading Bay Drive, Suite 100 907/283-4429 Kenai, Alaska 99611 18f4c299-a95c~69·b691~081fed9c33 HYDROELECTRIC PROJECT 11/12/2009 Page 90 1 the agenda; it's more on the rendering side of things. 2 Well, I guess you could render in 3-D. 3 JENNA BOROVANSKY: A 3-D rendering is my 4 understanding. 5 TOM BARNETT: Is that part of it? 6 BRAD ZUBECK: You know, I think that's a 7 little in more detail than I think we're going to be B able to legitimately speak to tonight. But, again, if 9 you would direct questions to comments. I think we 10 should --I think there would be a need for a 3-D model 11 when you study visual and esthetic resources. So just 12 frame it that way and we'll take and make note of that 13 comment. 14 TOM BARNETT: I think you just framed it for 15 me. Thank you. 16 BRAD ZUBECK: They're good questions we'll 17 just try and form into comments that will help us shape 18 studies. 19 Sir? 20 JASON AIGELDINGER: Jason Aigeldinger, again, 1 21 from Moose Pass. We spoke in January and I asked a 22 question about funding as well as a ballpark figure as 23 to how much it's going to cost. Now I completely 24 understand this is early, early stages of the game. Do 25 you have any numbers for us? PENINSULA REPORTING 110 Trading Bay Drive, Suite 100 907/283-4429 Kenai, Alaska 99611 i 18f4c299-a95c-4869·b691-84081fed9c33 HYDROELECTRIC PROJECT 11/12/2009 Page 91 1 BRAD ZUBECK: I don't have any numbers to 2 share with you tonight. But suffice it to say, we will 3 be looking at the economics. And as I alluded to 4 tonight 1 we're taking forecasting costs of studies. And 5 that's all rolled into the economic considerations of 6 the project. And at this time we've told you that we 7 perceive a need for additional funding to actually 8 implement these studies on the front end, but we won't 9 address economics or funding tonight. 10 JASON AIGELDINGER: May I ask one other 11 question? 12 BRAD ZUBECK: Sure. 13 JASON AIGELDINGER: I understand that CIRI is 14 no longer funding with you guys for this project. Is 15 that correct? 16 BRAD ZUBECK: CIRI has expressed a desire to 17 withdraw from the Kenai Hydro partnership and so we will 18 work with them to bring that about. 19 JASON AIGELDINGER: Now, are you currently 20 courting any other foundations~ corporations, entities 21 right now? 22 BRAD ZUBECK: I can't speak to that tonight, 23 but I appreciate the question. 24 JASON AIGELDINGER: When do you think you can 25 speak on that? PENINSULA REPORTING 110 Trading Bay Drive, Suite 100 907/283-4429 Kenai/ Alaska 99611 18f4c299-a95c-4869-b691-84081fed9c33 HYDROELECTRIC PROJECT 11/12/2009 Page 92 1 BRAD ZUBECK: When a decision is made to do 2 something and then the entity of Kenai Hydro is ready to 3 make that public. 4 JASON AIGELDINGER: And then one final 5 question, Brad. can you just well, I don't know if 6 you can answer this. So for a similar-sized facility, 7 say, somewhere else in the country, what would be a cost a for the construction, the implementation and the 9 construction? 10 BRAD ZUBECK: I'm not prepared to tell you 11 what other facilities cost in other areas of the United 12 States for a similar-type project. 13 JASON AIGELDINGER: Thank you. 14 BRAD ZUBECK: Other questions or are we ready 15 to move on? 16 JENNA BOROVANSKY: Cultural resources. For 17 cultural we have 13 previous surveys that have been done 18 in the area. The general project area, so and 19 they're on record with the State Historic Preservation 2o Office. Some of that information is summarized in the 21 PAD. 22 The Kenai Peninsula has been occupied 23 prehistorically and historically by Native groups. 24 There's a lot of historic mining, logging, and 25 settlement within the project area, and that's all of PENINSULA REPORTING 110 Trading Bay Drive, Suite 100 907/283-4429 Kenai, Alaska 99611 18f4c299-a95c-4869-b691-84081 fed9c33 HYDROELECTRIC PROJECT 11/12/2009 Page 93 1 the recorded sites. There's nine historic properties. 2 They're all of the historic era. 3 We haven't there's no prehistoric 4 archaeological sites on record within the project area. 5 And one of the historic sites has been determined 6 eligible already for the National Register of Historic 7 Places. And that's the Solars Sawmill on Grant Lake at 8 the head of Grant Creek. 9 And then right into the issue that we'll be 10 studying with the cultural resources study. 11 Essentially, it's looking at whether construction, 12 project operations, lake level fluctuation, road access, 13 maintenance, and the change in flows has any impact on 14 cultural --either already identified cultural sites or 15 cultural sites that are identified during surveys of the 16 project area, because the whole area will be resurveyed. 17 So in addition to FERC requirements, the 18 National Historic Preservation Act has specific 19 requirements that are also met through the consultation 20 process on cultural resources. And that involves making 21 sure that we consult with tribal entities as well as the 22 land management agencies, their archaeological 23 professionals. 24 And they consult in determining the full 25 survey area, which is called the Area of Potential PENINSULA REPORTING 110 Trading Bay Drive, Suite 100 907/283-4429 Kenai, Alaska 99611 18f4c299-a95c-4869-b691-84081fed9c33 HYDROELECTRIC PROJECT 11/12/2009 Page 94 1 Effect for cultural resources. And then work --they'll 2 work with the contractors as it's being developed to 3 determine the effects of any project activities on those 4 resources and go through whether any further 5 investigations to bring it --to determine whether any 6 of the identified sites are eligible for the National 7 Register of Historic Places as well. 8 And then once that determination is made 1 9 again, look to see whether any of the project activities 10 are going to impact that. 11 And part of the cultural resources study will 12 also be looking at subsistence use in the area and 13 whether any project --there will be any project effect 14 on that activity. 15 So that's it for cultural resources right now. 16 It's a little bit more detailed processed. It usually 17 takes a little bit longer/ especially in identifying 18 some of the --if there's any tribal -traditional 19 cultural properties. That's an individual consultation 20 that's kept --it's called privileged information in the 21 FERC process. And only the entities who have identified 22 it know where it is. And that kind of goes through its 23 own little process. 24 So as you're going through, occasionally, the 25 cultural people will kind of just come back in and tell PENINSULA REPORTING 110 Trading Bay Drive, Suite 100 907/283-4429 Kenai, Alaska 99611 18f4c299-a95c-4869-b691-84081fed9c33 HYDROELECTRIC PROJECT 11/12/2009 Page 95 1 you whether something was moved. But the whole idea is 2 if a prehistoric site in particular is identified, you 3 don't want the project activities and the identification 4 of that to bring about more people knowing about the 5 site and potentially damaging the site. So it's handled 6 in a little bit parallelled process along with the 7 public process. 8 BRAD ZUBECK: Question on cultural? 9 Mr. Luttrell? 10 MARK LUTTRELL: Yeah, Mark Luttrell. I 11 noticed on your slide it indicated that Solars Sawmill 12 is eligible for the register. Did you mean the Case 13 Mine? 14 JENNA BOROVANSKY: I don't know. You know, 15 again, this is not my area of expertise. I think there 16 is -there were a couple of the cultural sites that are 17 identified that I think when HDR was looking at it said 18 there might be -it might have two names, but I don't 19 know. 20 MARK LUTTRELL: The Case Mine has received a 21 lot of attention from the cultural types whereas Solars 22 Sawmill hasn't. 23 JENNA BOROVANSKY: I know that in the list of 24 the surveys that are on file I've seen Case Mine 25 mentioned as well. So I would imagine when they put the PENINSULA REPORTING 110 Trading Bay Drive, Suite 100 907/283-4429 Kenai, Alaska 99611 18f4c299-a95c-4869-b691-84081fed9c33 HYDROELECTRIC PROJECT 11/12/2009 Page 96 1 slides together, that's the one that had the 2 determination. 3 MARK LUTTRELL: And here's more of a comment 4 than a question sorry, Brad. Like you alluded to -- 5 well, I should just jump ahead. 6 Cultural resources are finite. And all the 7 cultural resources that exist and are known for historic s sites on Grant Lake are on or very near the shoreline. 9 And any se of the lake water is going to affect them. 10 Ten feet is extremely significant in terms of what it 11 would damage, because there are intact cultural deposits 12 associated with those sites. 13 And whi , you know, moose and alders and so 14 forth can be mitigated; cultural resources can't. So 15 one of the costs of this entire project that is finite 16 is the loss of irreplaceable cultural material. And you 17 can't put a price tag on it; you can't necessarily 18 mitigate it. All you can do is excavate it. And 19 there's nothing harder on an archaeological site than an 20 archaeologist. 21 JENNA BOROVANSKY: That's definitely something 22 that they look at. I think you know that, too. I mean, 23 when you look at the potential effects, then what do you 24 do to protect it or mitigate further potential impacts. 25 MARK LUTTRELL: Right. I'm just saying that PENINSULA REPORTING 110 Trading Bay Drive, Suite 100 907/283-4429 Kenai, Alaska 99611 I ! 18f4c299·a95c-4869-b691-84081fed9c33 HYDROELECTRIC PROJECT 11/12/2009 Page 97 1 there isn't anything you can do. 2 And, also, those 13 studies, those were -it 3 makes it sound like the area has been combed, but those 4 were mainly in association with some prescribed burning r 5 by the Forest Service. k 6 JENNA BOROVANSKY: They were pretty site 7 spec if The area will need to be combed, the 8 identified project area. 9 TOM BARNETT: When and who is doing that for 10 you? 11 BRAD ZUBECK: Mr. Barnett; correct? 12 TOM BARNETT: Yes. 13 JENNA BOROVANSKY: You said when -- 14 TOM BARNETT: When will those studies be 15 when will that cultural and archaeological survey be 16 performed? And then who is contracted to do that? 17 BRAD ZUBECK: Yet to be determined. The 18 proposed study plan would be advanced along with 19 other study plans in accordance with the schedule that 2o we've kind of outlined tonight. Again, it's a tentative 21 schedule. And there would be a work group associated 22 with that that would be focused on that area. But 23 that's yet to be determined. 24 Mr. Brennan? 25 WILL BRENNAN: Will Brennan. I have a PENINSULA REPORTING 110 Trading Bay Drive, Suite 100 907/283-4429 Kenai, Alaska 99611 18f4c299-a95c-4869-b691-84081 fed9c33 HYDROELECTRIC PROJECT 11/12/2009 Page 98 1 question about the - I guess the user groups. I guess 2 I'm less interested in prehistorical and historical 3 cultural resources and more interested in current 4 cultural resources, way of life issues. Which user 5 group do I want to get on for that? 6 JENNA BOROVANSKY: It is likely the 7 recreation, land use, esthetics, socioeconomics bundle 8 of groups. Those are generally all discussed kind of 9 within the same group. Because the cultural resources 1o is pretty specific to the historic or prehistoric 11 resources. 12 But we'll make sure that when we're forming 13 the groups, we're very clear about which groups are 14 handling which study topics. 15 WILL BRENNAN: Just make sure to take care of 16 that topic as well, way of life. 17 JJ KAIZER: There have been a lot of very 18 important issues and comments that have been made this 19 evening. Can you give us a heads up as to the date that 20 you will be coming to the community that will be most 21 impacted by this project; that is, Moose Pass? 22 BRAD ZUBECK: With? 23 TOM BARNETT: A meeting. 24 JJ KAIZER: This kind of a meeting, this kind 25 of informational meeting. PENINSULA REPORTING 110 Trading Bay Drive, Suite 100 907/283-4429 Kenai/ Alaska 99611 18f4c299-a95c4869-b691-84081fed9c33 HYDROELECTRIC PROJECT 11/12/2009 1 Page 99 BRAD ZUBECK: Well, the purpose of the meeting 2 tonight and the location was to try to serve the Moose 3 Pass community to provide a venue closer to that area. 4 Again, when we form specific resource groups, 5 there should be ample opportunity for individuals from 6 that area to be involved in those groups. Sites 7 JJ KAIZER: We would like to invite you to 8 Moose Pass. We have a very large gymnasium at the high 9 school. We have anything that you would require so that 10 people there who work so hard every day and can't come 11 down here as far as a 50-mile drive after a long day of 12 work but do need to be involved in this process, we 13 would like to invite you there. 14 BRAD ZUBECK: We appreciate the invitation. 15 We did look into holding the meeting at Moose Pass. We 16 looked into the community center. But based on our 17 experience there in January and the anticipated size of 18 the crowd, we thought we needed a little larger venue. 19 JJ KAIZER: That's why the gymnasium is being 20 offered to you. 21 BRAD ZUBECK: We looked into the Moose Pass 22 Community School and they turned us down for this 23 evening. They said they had a PTA meeting and that the 24 school was unavailable to us. 25 JJ KAIZER: We would be happy to change the PENINSULA REPORTING 110 Trading Bay Drive, Suite 100 907/283-4429 Kenai, Alaska 99611 18f4c299-a95c-4869-b691-84081 fed9c33 HYDROELECTRIC PROJECT 11/12/2009 Page 100 1 calendar for whatever date that you would wish. 2 BRAD ZUBECK: It didn't escape our attention 3 and we did look into Moose Pass as a first alternative. t 4 Because of other constraints for folks that would be 5 attending tonight 1 we couldn't deviate from the date, 6 today's date, but we did our best to try to serve the 7 Moose Pass community and the residents on this side of 8 the peninsula. 9 JJ KAIZER: Our only concern is the 10 dissemination of all of this important information. It 11 will be haphazard from now on. If there were a way for 12 you to come to the community to pull all of these 13 important pieces of information together, we would very 14 much agree and do anything that we can do for you to 15 help in the process. 16 BRAD ZUBECK: Thanks for the comment and the 17 invitation. And we will endeavor to hold a meeting 18 there and bring the information to the community. 19 JJ KAIZER: Thank you. 20 BRAD ZUBECK: Any other questions? 21 Mr. Shadura? 22 PAUL SHADURA: This is probably off the 23 historical deal. Is it open for any questions at this 24 point? 25 BRAD ZUBECK: We're probably ready to move on PENINSULA REPORTING 110 Trading Bay Drive, Suite 100 907/283-4429 Kenai, Alaska 99611 18f4c299-a95c4869·b691·84081fed9c33 HYDROELECTRIC PROJECT 11/12/2009 Page 101 1 to wrap up and open it up for general questions. Sure. 2 PAUL SHADURA: As the executive director of 3 Kenai Peninsula Fishermen's Association, I've looked 4 over your presentation and I see there is some studies s that are pointed towards the effects of recreation and 6 subsistence but not directly to commercial fishing. 7 In that regards, I would see that the study 8 would also incorporate what some of the other agencies 9 have overview. You know, the Sustainable Salmon 10 Fisheries Policy for the State of Alaska, the Cook Inlet 11 Salmon Management Plan. In the federal arena, the 12 Essential Fish Habitat, the Magnuson Stevens Act, 10 13 National Standards. All those things are very important 14 to us as commercial fishermen. That is why I'm here. 15 So I would appreciate if you will consider 16 doing an analysis to see what kind of effects there 17 would be on the commercial fishing in and around the 18 Moose Pass area. 19 BRAD ZUBECK: Thank you for the comment. 20 Mr. Cooney? 21 MIKE COONEY: Mike Cooney, Moose Pass. A 22 couple questions. I was just reminded in the cultural 23 discussion about the privileged information related to 24 cultural sites. I wondered if there was any chance that 25 the brown bear den sites, if they are -any identified. PENINSULA REPORTING 110 Trading Bay Drive, Suite 100 907/283-4429 Kenai, Alaska 99611 18f4c299·a95c-4869-b691~081fed9c33 HYDROELECTRIC PROJECT 11/12/2009 Page 102 1 Are those going to be privileged information or is that 2 going to be disseminated to the public? 3 JENNA BOROVANSKY: Typically I don't know 4 what has happened here. Sometimes the resource agencies 5 like the Fish and Wildlife Service or the Forest Service 6 or if ADF&G could ask that that type of information --I 7 know I've seen eagle nest sites kept as privileged 8 before in certain areas. It's on, I think, a 9 case by-case basis. 10 Do you know anything more specific about the 11 brown bear? 12 JOHN MORSELL: I think brown bear denning 13 areas generally are not released to the public. 14 MIKE COONEY: And another question --I guess 15 a comment and a question. It seems like tonight there's 16 been a lot of people talking about effects to the local 17 community and the project area residents and the social 18 standpoint from the economic standpoint. And I notice 19 that it's not here on the agenda, but there has been 20 some discussion about socioeconomic impacts being 21 assessed. Is Kenai Hydro committed to performing those 22 studies, or is that something that FERC is going to do 23 on its own? 24 BRAD ZUBECK: I think that that's a resource, 25 the socioeconomic impact, that would be part of the PENINSULA REPORTING 110 Trading Bay Drive, Suite 100 907/283-4429 Kenai, Alaska 99611 [. I 18f4c299·a95c-4869·b691·84081 fed9c33 HYDROELECTRIC PROJECT 11/12/2009 Page 103 1 studies that we're proposing. 2 MIKE COONEY: So if it's not on the agenda, it 3 doesn't mean you're not going to form a group to discuss 4 it? 5 BRAD ZUBECK: No. I think it falls within the 6 recreational esthetic resource purview. 7 MIKE COONEY: Thanks. 8 JENNA BOROVANSKY: There's some areas that 9 just end up --yeah, they don't necessarily have their 10 own study, but they're reported. If you look on if 11 you go to ferc.gov and look at all the requirements of 12 applicants and their draft -when they get to draft 13 license application and license application phases, it 14 lists the type of information they need to be providing 15 and socioeconomics is one of them. 16 MIKE COONEY: So I guess I'm still unclear. 17 There won't be a socioeconomic study group, technical 18 working group, to develop a study plan for that topic? 19 BRAD ZUBECK: The issue will be addressed, 20 Mike. There may not be a specific group focused on 21 that. 22 MIKE COONEY: That's what I wanted to know. 23 BRAD ZUBECK: Mr. Barnett? 24 TOM BARNETT: You've got -so this is just 25 the beginning of the NEPA process, the environment PENINSULA REPORTING 110 Trading Bay Drive, Suite 100 907/283-4429 Kenai, Alaska 99611 18f4c299-a95c-4869-b691-84081 fed9c33 HYDROELECTRIC PROJECT 11/12/2009 Page 104 1 impact statement will come out. What is your target 2 date on that? 3 BRAD ZUBECK: This is not the beginning of the 4 NEPA process, if I understand correctly. This is a 5 pre-license process where we seek to identify and 6 finalize what the issues are that require study that 7 would be then incorporated into a license application to 8 FERC. Once that application has been submitted to FERC, 9 FERC then initiates the NEPA process. The environmental 10 impact or environmental assessment then takes place 11 under this traditional licensing process. 12 TOM BARNETT: And then somewhere in that -- 13 and then you will develop a full-blown -a full-blown 14 environmental impact statement will come out of that, it 15 won't just be an EA; correct? 16 BRAD ZUBECK: It's one or the other. And it 17 would come out of an actual license application. 18 TOM BARNETT: Which one are you anticipating? 19 BRAD ZUBECK: I couldn't tell you at this 20 time. 21 JOHN MORSELL: That decision is made by FERC. 22 JENNA BOROVANSKY: FERC makes that decision. 23 It's the Kenai Hydro -- 24 TOM BARNETT: But having been through this 25 several times myself, you should have a fairly good idea PENINSULA REPORTING 110 Trading Bay Drive, Suite 100 907/283-4429 Kenai, Alaska 99611 18f4c299·a95c-4869-b691-84081fed9c33 HYDROELECTRIC PROJECT 11/12/2009 Page 105 1 of which one you're leaning towards even at this time. 2 BRAD ZUBECK: I cannot tell you at this time, 3 sir. 4 JIM FERGUSON: Actually, I have a comment on 5 that. Jim Ferguson with Fish & Game. FERC has a very 6 unusual approach to putting those documents together, 7 having looked at all the projects statewide and worked 8 on them. What many agencies would call an EIS, FERC 9 calls an EA. And I'm guessing --this would just be my 10 guess that FERC will call it an EA, but it will 11 probably be several hundred pages long. 12 TOM BARNETT: That's an EA. I'm thinking an 13 EIS about (indicating) . 14 JIM FERGUSON: Well, it could be like that. 15 It's hard to say. FERC is odd in that respect. It's 16 something to be worth talking to someone who's involved 17 in the FERC process about, how they look at that. I'm 18 guessing that FERC is going to call it an EA. 19 TOM BARNETT: Well, that goes --that's more 20 of a time -that becomes more of a time issue then. 21 BRAD ZUBECK: At this point, it's purely 22 speculation and it is, I think, a FERC decision as 23 pointed out. 24 Mr. Deacon? 25 JON DEACON: I have a question in general. PENINSULA REPORTING 110 Trading Bay Drive, Suite 100 907/283-4429 Kenai, Alaska 99611 18f4c299-a95c-4869~691-84081fed9c33 HYDROELECTRIC PROJECT 11/12/2009 Page 106 1 I've read a great deal about --and I'm by no means a 2 professional about this in any way. I've read a great 3 deal about hydroelectric power from wave action, from 4 tidal action, things like that, that France, Sweden, 5 even the Thames River, and some other places have been 6 doing this for about a decade. Has that been looked 7 into here? We have a tremendous coastline here in 8 Alaska and Cook Inlet. I mean, technologically, are we 9 not there yet? 10 BRAD ZUBECK: Maybe that's a topic for -- 11 after the meeting is over, I'd be glad to talk with you 12 about that a little bit or someone else from Homer 13 Electric would be. 14 Other questions? 15 MARK KROMREY: Yeah, my name is Mark Kromrey. 16 I'm a resident of Moose Pass area. I happen to be a 17 landowner in that along the Falls Creek Road. One of 18 things that I --the reason I bought the property was 19 the sound of Falls Creek. It drowns out all the sounds 20 of, you know, the highway, anything like that. 21 I guess in the --I missed whatever column 22 this should have come up in, but --there really wasn't 23 a column -but the sociological impact. The people 24 that live there, they recreate there but they recreate 25 there like every day. And the way they have the bridge PENINSULA REPORTING 110 Trading Bay Drive, Suite 100 907/283-4429 Kenai, Alaska 99611 I I i 18f4c299-a95c-4869-b691·84081fed9c33 HYDROELECTRIC PROJECT 11/12/2009 Page 107 1 right now, every time a vehicle goes over, it's like 2 three metal clangs, bam, bam, bam, every time a vehicle 3 goes over it. 4 If you drain Falls Creek, the noise that the 5 creek makes will go away; the highway noise will 6 increase dramatically. I mean, you're going to hear all 7 of that highway noise. 8 So, you know, I guess there's a lot of --to 9 the people who live there, there's a lot of negative 1o effects. If you would have had this meeting in Moose 11 Pass, you would have had four times as many people. I'm 12 from there, have to leave the kids at home, come down 13 here to Seward. You know, this sounds close to you, but 14 it really is not. Driving to Seward is 70 miles round 15 trip. By the number of people that I see from Moose 16 Pass, this is a very near and dear area to our 17 community. 18 So, you know, draining Falls Creek is not 19 just, oh, a little bit more water for a power plant. 2o It's going to be a very major effect on the people who 21 live around there. 22 BRAD ZUBECK: So we should study the effect 23 of - 24 MARK KROMREY: Noise. 25 BRAD ZUBECK: --noise from the creek, quality PENINSULA REPORTING 110 Trading Bay Drive, Suite 100 907/283-4429 Kenai, Alaska 99611 J I 18f4c299·a95c-4869·b691-84081fed9c33 HYDROELECTRIC PROJECT 11/12/2009 Page 108 1 of life issues related to that? 2 MARK KROMREY: Yes, please. i 3 BRAD ZUBECK: Again, I'll mention that tonight 4 is just the beginning of an opportunity to comment. And 1 5 it's just a meeting for us to get out and an opportunity 6 for folks to come and hear what the project is about and 7 to hear what we've identified as issues. 8 But people of Moose Pass are welcome to get 9 ahold of the PAD through our web site, contact us 10 directly for copies of the PAD to read through and ask 11 questions, and submit comments even in the form of 12 questions to FERC so that those are identified or 13 addressed through study planning. i 14 So tonight is not your only opportunity to ask 15 questions or to comment. So for those of you returning i' 16 to Moose Pass tonight, please pass that information on 17 to the residents there and have them access the web 18 site. Again/ you've got the information on the back of 19 the agenda tonight on how to file comments with FERC, on 20 how to access our web site, and to give additional 21 information. 22 Ma'am? 23 RAE WICKARD: Rae Wickard. I have a question. 24 I've lived around dams growing up. And one of the 25 things they did is when they open the gates -is this PENINSULA REPORTING 110 Trading Bay Drive, Suite 100 907/283-4429 Kenai, Alaska 99611 18f4c299·a95c-4869·b691·84081fed9c33 HYDROELECTRIC PROJECT 11/12/2009 Page 109 1 going to have gates, this type of dam you're building? 2 This huge loud whistle or siren would blow alerting 3 people downstream that there was going to be a larger 4 pool of water. Is that the type of dam this is going to s be? Are they going to have to blow this loud horn or 6 whistle? 7 BRAD ZUBECK: I don't believe so. 8 RAE WICKARD: I'm just curious because that 9 really has an impact on people. 10 BOB BUTERA: We wouldn't be releasing any more 11 water than we had to because that would just be water we 12 couldn't generate power with. 13 RAE WICKARD: I was just curious because it 14 was quite loud. It could be heard for miles. 15 BRAD ZUBECK: Other questions or comments on 16 issues to address? 17 Yes? 18 JJ KAIZER: May I check on two things that 19 have been written up in the Redoubt Reporter with you? 20 Just because this is an informational meeting, I just 21 want to make sure that the information is correct. 22 BRAD ZUBECK: It's Ms. Kaizer? 23 JJ KAIZER: Yes. 24 BRAD ZUBECK: And we'll listen to the 25 questions and see if PENINSULA REPORTING 110 Trading Bay Drive, Suite 100 907/283-4429 Kenai, Alaska 99611 18f4c299-a95c-4869-b691·84081fed9c33 HYDROELECTRIC PROJECT 11/12/2009 1 Page 110 JJ KAIZER: One statement was an outlet will 2 be built on the north abutment of the dam allowing the 3 lake to be drained to aid construction. And that is not 4 correct? 5 BRAD ZUBECK: Not sure where that information 6 came from, but 7 JJ KAIZER: The other comment was construction 8 starting with the access roads is expected to begin in 9 April of this year. 10 BRAD ZUBECK: Misinformation. Don't know 11 where they came up with that. 12 JJ KAIZER: Thank you. 13 BRAD ZUBECK: Other questions? 14 Mr. Barnett? 15 TOM BARNETT: I just --I'd kind of like to 16 reiterate what Mr. Kromrey said earlier that I think 17 in a lot of ways you're going to want to get support 18 from the community. Living there and being part of the 19 community, I sense that there's a sense of alienation or 20 being ignored by meeting here, and I think that carries 21 through. And even if we go back and tell people what we 22 heard, it's still going to be why weren't they here. 23 We'd sure appreciate it if they'd come here. 24 And if you're looking to promote your product, 25 which you are, it would really behoove you to meet with PENINSULA REPORTING 110 Trading Bay Drive, Suite 100 907/283-4429 Kenai, Alaska 99611 18f4c299-a95c-4869-b691-84081fed9c33 HYDROELECTRIC PROJECT 11/12/2009 Page 111 1 the community. And there will be a lot of negatives, 2 but to deal with them at that local level and make 3 everybody feel a part of it. Because the biggest thing 4 is being heard. I might not like your answers, but if 5 you're in the community and you're making that effort, 6 that goes a long way. 7 And I can't suggest strongly enough what JJ B said, please, make that effort and make it more than -- 9 for lack of better words more than just lip service. 10 Be there and become part of that community because you 11 will be eventually. It's better to be liked than hated 12 for the whole time. That would be my only comment. 13 BRAD ZUBECK: I appreciate the comments and I 14 appreciate the invitation. And, again, it wasn't for 15 lack of effort to try to get there on this evening. We 16 will make a point to do that in the future. 17 JJ KAIZER: Do you have a direct number I 18 could call so we could make a plan for this? 19 BRAD ZUBECK: You can see me afterwards. 20 JJ KAIZER: Okay. Terrific. 21 BRAD ZUBECK: Other questions or comments? 22 Mr. Luttrell? 23 MARK LUTTRELL: I have one last thing. I'm 24 part of the Resurrection Bay Conservation Alliance. And 25 our group and also the Alaska Center for the Environment PENINSULA REPORTING 110 Trading Bay Drive, Suite 100 907/283-4429 Kenai, Alaska 99611 18f4c299-a95c-4869-b691-84081fed9c33 HYDROELECTRIC PROJECT 11/12/2009 Page 112 1 put together a brochure I'd like to pass out to the 2 group here tonight. It just describes some of the 3 reasons why we oppose it and sources of more information 4 about the web site --about the project. 5 BRAD ZUBECK: Sir? 6 MIKE CORREA: Mike Correa, Crown Point. If 7 the whole community was against this project, would it 8 make a difference on the final outcome? 9 BRAD ZUBECK: It certainly could. 10 MIKE CORREA: Could we put a squash on it? 11 BRAD ZUBECK: I couldn't tell you. 12 MIKE CORREA: Would it go ahead as planned? 13 BRAD ZUBECK: I could not tell you. 14 MIKE CORREA: I just was curious. Thank you. 15 SPEAKER: FERC has the final say, yea or nay? 16 BRAD ZUBECK: On a license for the project. 17 SPEAKER: And you get to then decide whether 18 you want to do it or not after that point; correct? 19 BRAD ZUBECK: Correct. 20 SPEAKER: FERC is a government agency on 21 government land somewhere. I mean, there's no office 22 here of FERC, so anything --there's no representative 23 of said FERC except through these meetings. so 24 essentially there is no face of FERC besides going to 25 meetings and the letters. PENINSULA REPORTING 110 Trading Bay Drive, Suite 100 907/283-4429 Kenai, Alaska 99611 :~ 18f4c299-a95c-4869-b691-84081fed9c33 HYDROELECTRIC PROJECT 11/12/2009 1 2 3 4 5 6 7 8 9 Page 113 BRAD ZUBECK: At this time in the process. I'll remind you that if the study plans go ahead, FERC has agreed to early scoping, which means that they would be involved early, which means they would conduct scoping meetings to address and more or less finalize issues in parallel with our study plans. So we would issue draft study plans, FERC 1: would issue a scoping document, plans would be finalized based on FERC's finalizing of the issues through that 10 scoping processi the scoping document one, holding a 11 meeting here that FERC would conduct more or less along 12 the same lines where they would seek to take comments. 13 And they will, I believe, take the comments from 14 tonight. The comments that you have brought to us 15 tonight would be rolled into their scoping document one 16 as a preliminary draft of issues related to the project. 17 So, yes, FERC would be involved early on in 18 this process if we were to move forward with the study 19 plan. 20 SPEAKER: Am I correct that even though FERC 21 is involved, the ultimate needs to be --all the 22 permitting agencies still need to approve it before the 23 project would be put forth? 24 BRAD ZUBECK: Correct. 25 JENNA BOROVANSKY: All the local, state, and .. • .. / PENINSULA REPORTING 110 Trading Bay Drive, Suite 100 907/283-4429 Kenai, Alaska 99611 18f4c299-a95c-4869-b691-84081fed9c33 HYDROELECTRIC PROJECT 11/12/2009 Page 114 1 federal agency representatives are FERC relied upon, all 2 of their requirements. 3 SPEAKER: I think sometimes there's a 4 misconception that once you get a FERC permit, you get 5 to go do whatever you want. And I think a lot of times 6 people don't understand that there's also other permits 7 that are still going to be required. 8 BRAD ZUBECK: Mr. Aigeldinger? 9 JASON AIGELDINGER: You got it. Thanks, Brad. 10 Real quick. So would I be correct in saying that HEA at 11 this time is using their own money to -like all the 12 research your contractors have done through the '08 13 field season and --well, of '09 --I apologize --and 14 then gearing up for 2010, those are all private funds 15 from Homer Electric, HEA? 16 BRAD ZUBECK: Again, see me afterwards to talk 17 about funding. 18 JASON AIGELDINGER: I guess I have an interest 19 as a taxpayer. I'm wondering if you're using any 2o federal dollars. 21 BRAD ZUBECK: I think we've said, no, we do 22 not have any federal monies involved with financing the 23 project at this time. 24 Mr. Cooney? 25 MIKE COONEY: I have a question related to PENINSULA REPORTING 110 Trading Bay Drive, Suite 100 907/283-4429 Kenai, Alaska 99611 18f4c299-a95c-4869-b691-84081 fed9c33 HYDROELECTRIC PROJECT 11/12/2009 Page 115 1 that. Is it true that the Denali Commission originally 2 contributed $200,000, HEA added $4 1 000, and used that 3 for the Falls/Grant Project? 4 BRAD ZUBECK: No. Denali Commission has had 5 absolutely no involvement in funding this project. 6 Funding questions, see me afterwards. Comments on 7 issues need to be studied, we'll be glad to take them. s Mr. Deacon? 9 JON DEACON: If this project doesn't work out 10 the way you hope, where would be your next project site? 11 BRAD ZUBECK: At this time we have no other 12 plans for other hydro projects. 13 TOM BARNETT: What happened to Ptarmigan Lake 14 and the Cooper Lake ideas? 15 BRAD ZUBECK: We surrendered those permits and 16 are no longer pursuing those projects. They didn't look 17 to us to be attractive economically or environmentally. 18 Mr. Thomas? 19 DAVID THOMAS: David Thomas, Kenai, to clarify 2o a point. Cooper Lake is not an HEA facility. It is not 21 and would not be anticipated to be 22 BRAD ZUBECK: I'm sorry, did you say Cooper -- 23 DAVID THOMAS: Tom said Cooper. 24 TOM BARNETT: I'm sorry. 25 DAVID THOMAS: On Crescent Lake. That was one PENINSULA REPORTING 110 Trading Bay Drive, Suite 100 907/283-4429 Kenai, Alaska 99611 18f4c299-a95c-4869-b691-84081 fed9c33 HYDROELECTRIC PROJECT 11/12/2009 Page 116 1 of the permits that we surrendered. 2 BRAD ZUBECK: Thanks for the clarification. 3 TOM BARNETT: And what was the economic and 4 the environmental considerations on those? 5 BRAD ZUBECK: They were not attractive 6 economically and not attractive environmentally. We 7 didn't want to pay for the cost of the power to come out 8 of them and we didn't want to pay for the cost of the 9 environmental impact. 10 JON DEACON: How was the environmental impact 11 there different than here? 12 BRAD ZUBECK: I couldn't tell you at this time 13 exactly what those details are. 14 JON DEACON: Because you haven't quite studied 15 it far enough? k 16 BRAD ZUBECK: I'm not prepared to answer 17 tonight that particular question. 18 TOM BARNETT: Where can that be found? 19 BRAD ZUBECK: I couldn't tell you at this 20 time. 21 TOM BARNETT: When can you? That would be 22 interesting to see - 23 BRAD ZUBECK: See me afterwards. It's not 24 related to this particular project, the Grant Lake/Falls 25 Creek Project. So if you have questions related to PENINSULA REPORTING 110 Trading Bay Drive, Suite 100 907/283-4429 Kenai, Alaska 99611 18f4c299·a95c-4869·b691-84081 fed9c33 HYDROELECTRIC PROJECT 11/12/2009 Page 117 1 issues or study topics for this project, we'd be glad to 2 take additional comments. Otherwise, we'll close the 3 meeting and let these folks get on home. See me 4 afterwards if you want to talk some more about those s details. 6 Ma'am? 7 RACHEL SCHUBERT: Rachel Schubert, Moose Pass. 8 I feel like the questions about the Grant Lake Project 9 are directly related to the questions about the Crescent 10 Lake Project because that project came about kind of at 11 the same time this project came about and now that 12 project is no longer in question. 13 That project no longer exists, but this 14 project does. So something happened to that project, 15 but something has not happened with this project. So, I 16 mean, in order to better understand what is going on 17 with these projects, it would be pertinent information 18 to understand what happened with the other project. 19 BRAD ZUBECK: Tonight, for the purpose of 20 tonight, we'll just say that those decisions have no 21 bearing on the issues that we're going to study on the 22 Grant Lake/Falls Creek Project. 23 Mr. Shadura? 24 PAUL SHADURA: This is the last one. I'm 25 sorry to make people wait. But, you know, just as a PENINSULA REPORTING 110 Trading Bay Drive, Suite 100 907/283-4429 Kenai, Alaska 99611 i I 18f4c299-a95c-4869-b691-84081fed9c33 HYDROELECTRIC PROJECT 11/12/2009 Page 118 1 cooperative member of HEA since 1969 I'm just wondering 2 why comparison analysis hasn't been done to put another 3 turbine in the Bradley Lake facility, which it was 4 designed to do, instead of using this and going through 5 all this situation when basically the Bradley Lake 6 Project would be a no-brainer, easy. 7 I mean, have you made that comparison to other 8 projects as a representative of HEA? 9 BRAD ZUBECK: Again, that's probably -that's 10 an after the meeting type question to address with HEA 11 and not for this forum tonight. We'll be glad to answer 12 it afterwards. 13 Other questions for the night for issues 14 related to Grant Lake/Falls Creek? If not, I thank you 15 all very much for turning out tonight. I appreciate 16 your attendance. I appreciate your comments. 17 As a reminder, again, you can find information 18 on the back of your agenda, the sites to FERC and Kenai 19 Hydro. 20 (Proceedings adjourned at 9:00p.m.) 21 22 23 24 25 PENINSULA REPORTING 110 Trading Bay Drive, Suite 100 907/283-4429 Kenai, Alaska 99611 18f4c299-a95c-4869-b691-84081fed9c33 HYDROELECTRIC PROJECT 11/12/2009 Page 119 1 REPORTER'S CERTIFICATE 2 I, Valerie Martinez, Notary Public in and for 3 the State of Alaska do hereby certify: 4 That the proceedings were taken before me at the 5 time and place herein set forth; that the proceedings 6 were reported stenographically by me and later 7 transcribed under my direction by computer 8 transcription; that the foregoing is a true record of 9 the proceedings taken at that time; and that I am not a 10 party to nor have I any interest in the outcome of the 11 action herein contained. 12 IN WITNESS WHEREOF, I have hereunto subscribed 13 my hand and affixed my seal this day of 14 2009. 15 16 17 for Alaska 18 19 My Commission Expires: June 22, 2010 20 21 22 23 24 25 PENINSULA REPORTING 110 Trading Bay Drive, Suite 100 907/283-4429 Kenai, Alaska 99611 18f4c299-a95c-4869-b691-84081 fed9c33