[Federal Register Volume 76, Number 26 (Tuesday, February 8, 2011)]
[Notices]
[Pages 6820-6825]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-2675]
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DEPARTMENT OF THE INTERIOR
Bureau of Reclamation
Contract for Hydroelectric Power Development at the C-Drop, a
Feature of the Klamath Project, Klamath Falls, OR
AGENCY: Bureau of Reclamation, Interior.
ACTION: Notice of intent to accept proposals, select one lessee, and
contract for hydroelectric power development at the Klamath Project, C-
Drop.
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SUMMARY: On March 24, 2010, the Department of the Interior (DOI),
through the Bureau of Reclamation (Reclamation), U.S. Department of
Energy, and Department of the Army through the U.S. Army Corps of
Engineers, signed a Memorandum of Understanding (MOU) between the
Federal agencies to promote the development of hydropower. Pursuant to
this MOU and the current Federal policy encouraging non-Federal
development of electrical power resource potential on Federal water
resource projects, Reclamation will consider proposals for non-Federal
development of hydroelectric power at C-Drop of the Klamath Project,
Oregon. This Notice presents background information, proposal content
guidelines, and information concerning selection of one or more non-
Federal entities to develop hydroelectric power at C-Drop, and power
purchasing and/or marketing considerations. Interested entities are
invited to submit a proposal on this project.
DATES: A written proposal and seven copies must be submitted on or
before 12 p.m. (PST), on March 31, 2011.
ADDRESSES: Send written proposals and seven copies to Mr. Paul Landry,
Lease of Power Privilege Coordinator, Bureau of Reclamation, Mid-
Pacific Region, Central Valley Operations Office (CVO-600), 3310 El
Camino Ave, Suite 300, Sacramento, CA 95821. For additional information
on:
(1) Western Area Power Administration's (Western) purchasing and/or
marketing the power, contact Ms. Sonja Anderson, Power Marketing
Manager, Western Area Power Administration, Sierra Nevada Region, 114
Parkshore Drive, Folsom, CA 95630, Telephone: 916-353-4421.
(2) Operation and maintenance of Link River Dam and Upper Klamath
Lake, contact Mr. Cecil Lesley, Special Assistant to the Area Manager,
Bureau of Reclamation, Mid Pacific Region, Klamath Project Office (KO-
100), 6600 Washburn Way, Klamath Falls, OR 97603, Telephone: 541-880-
2546.
(3) Operation and maintenance of the C-Canal, contact Mr. Mark
Stuntebeck, Manager, Klamath Irrigation District, 6640 KID Lane,
Klamath Falls, OR 97603, Telephone: 541-882-6661.
FOR FURTHER INFORMATION CONTACT: Mr. Paul Landry at 916-979-0255, or
[email protected].
[[Page 6821]]
SUPPLEMENTARY INFORMATION: The Secretary of the Interior authorized
development of the Klamath Project on May 15, 1905, pursuant to the
Reclamation Act of 1902. As part of the Klamath Project, the United
States constructed A, B, and C-Canals, which carry water south from the
Link River Dam to the vicinity of Henley, OR. The Klamath Irrigation
District (District), under its contracts with the United States, has
certain operation, maintenance, replacement, and repayment
responsibilities and obligations concerning the C-Drop, which includes
such responsibility for and the supply water for the C-Canal. The C-
Drop is a transition structure between the A-Canal and the C-Canal. It
is a drop structure which produces the head needed to drive a
powerplant. There has been previous development of hydropower resources
by a Klamath Project water district at the C-Drop.
Reclamation is considering hydroelectric power development at the
Klamath Project through a lease of power privilege. A lease of power
privilege is a congressionally authorized alternative to Federal
hydroelectric power development. A lease of power privilege grants to a
non-Federal entity the right to utilize, consistent with Klamath
Project purposes, water power head or storage at and/or operationally
in conjunction with the C-Drop, for non-Federal electric power
generation and sale by the entity. Leases of power privilege have terms
not to exceed 40 years. The general authority for lease of power
privilege under Reclamation law includes, among others, the Town Sites
and Power Development Act of 1906 (43 U.S.C. 522) and the Reclamation
Project Act of 1939 (43 U.S.C. 485h(c)) (1939 Act).
Reclamation will be the lead Federal agency for ensuring compliance
with the National Environmental Policy Act (NEPA) of any lease of power
privilege considered in response to this Notice. Leases of power
privilege may be issued only when, upon completion of the NEPA process,
Reclamation determines that the affected hydroelectric power sites are
environmentally acceptable.
Any lease of power privilege at the Klamath Project must
accommodate existing contractual commitments related to operation and
maintenance of such existing facilities. Western would have the first
opportunity to purchase and/or market the power that would be generated
under any lease of power privilege. Under this process, Western would
both purchase and market the power independently by first offering it
to preference entities and secondly to non-preference entities. All
costs incurred by the United States related to development and
operation and maintenance under a lease of power privilege, including
but not limited to NEPA compliance, development of the lease of power
privilege, design reviews, construction oversight, and any other
associated documents, would be the expense of the lessee. In addition,
the lessee would be required to make annual lease payments to the
United States for the use of a Federal facility. This payment will be
equivalent to the current graduated flat rate Government Dams Charge,
charged by the Federal Energy Regulatory Commission (FERC) under
Federal Power Act Section 11.3, which states: ``Annual charges for the
use of Government dams or other structures owned by the United States
are 1 mill per kilowatt-hour for the first 40 gigawatt-hours of energy
a project produces, 1\1/2\ mills per kilowatt-hour for over 40 up to
and including 80 gigawatt-hours, and 2 mills per kilowatt-hour for any
energy the project produces over 80 gigawatt-hours.''
Additional information regarding the annual lease payment will be
made available upon formal request through the Lease of Power Privilege
Coordinator at the above address.
Proposal Content Guidelines: Interested parties should submit one
or more proposals explaining, in as precise detail as is practicable,
how the hydropower potential at each site would be developed. Proposals
should consider and address, but are not limited to, the following:
a. Provide all information relevant to the qualifications of the
proposing entity to plan and implement such a project, including, but
not limited to, information about preference status, type of
organization, length of time in business, experience in funding, design
and construction of similar projects, industry rating(s) that indicate
financial soundness and/or technical and managerial capability,
experience of key management personnel, history of any reorganizations
or mergers with other companies, safety record, and any other
information that demonstrates the interested entity's organizational,
and technical and financial ability to perform all aspects of the work.
Include a discussion of past experience in operating and maintaining
similar facilities and provide references as appropriate. The term
``preference entity,'' as applied to a lease of power privilege, means
an entity qualifying for preference under Section 9c of the 1939 Act,
as a municipality, public corporation or agency, or cooperative or
other nonprofit organization financed in whole or in part by loans made
pursuant to the Rural Electrification Act of 1936, as amended.
b. Provide geographical locations and describe principal structures
and other important features of the proposed development including
roads and transmission lines. Estimate and describe installed capacity
and the capacity of the power facilities under dry, average, and wet
hydrological conditions. Also describe seasonal or annual generation
patterns. Include estimates of the amount of electrical energy that
would be produced from each facility for each month of average, dry,
and wet water years. If capacity and energy could be delivered to
another location, either by the proposing entity or by potential
wheeling agents, specify where capacity and energy could be delivered.
Include concepts for power sales and contractual arrangements, involved
parties, and the proposed approach to wheeling, if required.
c. Indicate title arrangements and the ability to acquire title to
or the right to occupy and use lands necessary for the proposed
development, including such additional lands as may be required during
construction.
d. Identify water rights applicable to the operation of the
proposed development, the holder of such rights, and how these rights
would be acquired or perfected.
e. Discuss any studies necessary to adequately define impacts on
the Klamath Project and the surrounding environment required by the
development. Describe any significant environmental issues associated
with the development and the proposing entity's approach for gathering
relevant data and resolving such issues to protect and enhance the
quality of the environment. Explain any proposed use of the hydropower
development for conservation and utilization of the available water
resources in the public interest.
f. Describe anticipated contractual arrangements with the entity or
entities having operation and maintenance responsibility for the C-Drop
feature(s) that are proposed for utilization in the hydropower
development under consideration. Define how the hydropower development
would operate in harmony with the Klamath Project, not impact Klamath
Project operations, existing applicable contracts related to operation
and maintenance of C-Drop feature(s) that are proposed for utilization
in the hydropower development under consideration, and any other
applicable water-related contracts.
g. Identify the organizational structure planned for the long-term
operation and
[[Page 6822]]
maintenance of any proposed hydropower development.
h. Provide a management plan to accomplish such activities as
planning, NEPA compliance, lease of power privilege development,
design, construction, facility testing, and start of hydropower
production. Prepare schedules of these activities as applicable.
Describe what studies are necessary to accomplish the hydroelectric
power development and how the studies would be implemented.
i. Estimate development cost. This cost should include all
investment costs, such as feasibility studies, NEPA compliance, design,
construction, associated bonding and financing, as well as the
amortized annual cost of the investment; annual operation, maintenance,
and replacement expense for the hydropower development; lease payments
to the United States; and expenses that may be associated with the C-
Drop project. Additionally, transmission or wheeling expenses
associated with the development of the hydropower development, if any,
should be included. Identify proposed methods of financing and
hydropower development. Present an economic analysis that compares the
present worth of all benefits and costs of the hydropower development.
Selection of Lessee: Reclamation will evaluate proposals received
in response to this published notice. Reclamation will give more
favorable consideration to proposals that (1) are well-adapted to
developing, conserving, and utilizing the water and natural resources,
(2) clearly demonstrate that the offeror is qualified to develop the
hydropower facility and provide for long-term operation and
maintenance, and (3) economically develop the hydropower potential. A
proposal will be deemed unacceptable if it is inconsistent with Klamath
Project purposes, as determined by Reclamation.
Reclamation will give preference to those entities that qualify as
preference entities as defined under Proposal Content Guidelines, item
A, provided that their proposal is at least as well-adapted to
developing, conserving, and utilizing the water and natural resources
as other submitted proposals and that the preference entity is well
qualified. Preference entities would be allowed 90 days to improve
their proposals, if necessary, to be made at least equal to a proposal
that may have been submitted by a nonpreference entity.
Power Purchasing and/or Marketing Considerations: Western would
have the first opportunity to purchase and/or market the power that
would be generated by the project under a lease of power privilege.
Western will consult with Reclamation on such power purchasing and/or
marketing considerations. In the event Western elects to not purchase
and/or market the power generated by the hydropower development, or
such a decision cannot be made prior to execution of the lease of power
privilege, the lessee would be responsible for marketing the power
generated by the project with priority given to preference entities as
heretofore defined in Proposal Content Guidelines, item A.
Notice and Time Period to Enter into Lease of Power Privilege:
Reclamation will notify, in writing, all entities submitting proposals
of Reclamation's decision regarding selection of the potential lessee.
The selected potential lessee will have two (2) years from the date of
such notification to enter into a lease of power privilege for the site
or sites identified in the proposal. Such leases of power privilege
will state whether and how Western will be involved in purchasing and/
or marketing the power. Any excessive delay resulting from compliance
with the provisions of Federal environment laws or administrative
review by a Federal agency, pertaining to the project, may extend the
two (2) year time period for a period equal to that of the delay. In
the event of litigation related to the proposed project, the two (2)
year time period will be extended for a period equal to that of the
delay, provided such litigation was initiated by parties other than the
selected potential lessee or its employees, officers, agents, assigns,
shareholders, customers, or persons or groups served by or in privity
with the potential lessee.
Reclamation Up Front Expenses: The Lessee will provide, in advance
of expenditures, the necessary funding to cover all Reclamation costs
related to the development, construction, and security of the Lessee's
power facilities and any related administrative costs. Reclamation will
give the Lessee an estimate of these costs and the Lessee will pay in
advance. Any unused funds will be returned.
Specific Guidelines for Hydropower Development under a Lease of
Power Privilege: This section outlines the specific Reclamation process
for developing a lease of power privilege agreement on an existing
Region dam or canal. It is to be used as a guide for Reclamation
personnel and prospective lease of power privilege applicants during
the application, selection, and agreement phases of a lease.
The following factors will be considered when entering into a
Lease:
a. Title to the existing Federal facility remains with the United
States. Title to the proposed powerplant facilities is with the Lessee
unless contracted otherwise. Title to any modifications to the Federal
facility will remain with the United States. Leases may not be
transferred or facilities sold without written approval of Reclamation.
The Lease will include language giving the Government the first right
to purchase or take over the Lease should the Lessee need to sell the
facilities.
b. Title to existing Federal Lands under Lessee's completed
Facilities will remain with the United States. Land easements on
Federal Lands will be addressed giving particular attention to current
access, as well as identifying needed access. Land easements for non-
Federal lands will be the responsibility of the Lessee.
c. The structural and operational integrity of existing Reclamation
facilities or associated Federal projects must not be impaired by
construction, operation, or maintenance of the Lessee's powerplant
facilities. Powerplant construction and operation must not interfere
with the existing or future project operations, jeopardize existing
water rights, alter compliance with environmental requirements or
commitments, impair the efficiency of the project for irrigation
purposes, impair the efficiency of other hydroelectric facilities on
the project, impair security, or create any dam safety related
deficiency, recreation hazards, or other safety problems.
d. Access to and operation of the existing Reclamation facilities
must be sustained during construction and operation of the Lessee's
powerplant facilities.
e. Reclamation will review and approve all analyses, designs,
plans, specifications, and related material associated with the
proposed powerplant facilities. Such reviews will be to the level of
detail deemed necessary by Reclamation to ensure that the structural,
operational, safety and security of the Reclamation project is not
impaired by construction, operation, or maintenance of the proposed
powerplant facilities.
f. Reclamation will maintain the right to approve in advance any
third party contracts prior to execution by the Lessee.
g. The purpose of Reclamation's review of analyses, designs, plans,
and specifications for the proposed development and related materials
will be to ensure the continued, safe operation of the Reclamation
facilities, the integrity of Reclamation's structures, and compliance
with environmental
[[Page 6823]]
commitments. Any modifications required for construction of the
powerplant that may affect the safe operation of Reclamation
facilities, such as installation of penstocks, excavation into dam
embankments and foundations, etc., will be reviewed by, approved, and
performed under the direct oversight of Reclamation and all costs of
those modifications and related expenses will be paid by the Lessee.
Construction of such modifications may be contracted by either the
Lessee or Reclamation. If contracted by the Lessee, Reclamation will
have advance prior approval of such contract.
h. The Lessee will be responsible for the designs, construction,
operation, maintenance, safety, and security of the powerplant
facilities. Reclamation will review the designs, provide inspection
during construction and testing, and review the operation and
maintenance of the facility. Any discrepancies found during any review
will be corrected by the Lessee.
i. Reclamation will inspect powerplant and related facilities to
the extent necessary to ensure the continued safe operation and
structural integrity of Reclamation facilities and to ensure compliance
with environmental commitments. Reclamation's inspections will be in
addition to inspections performed by the Lessee. The Lease will contain
provisions requiring the developer to immediately address any
recommendations issued by Reclamation. These recommendations will be
tracked by the Lessee according to the time frames established in the
Lease Any costs incurred will be the responsibility of the Lessee.
j. All Lessee powerplant operations must be consistent with
operations of the Reclamation project for project purposes.
k. Under circumstances where a water or power user organization
that is also the project/program beneficiary is not a participant in
the power development, the Lease must include their involvement, as
appropriate.
l. Reclamation can deny the issuance of a Lease or withdraw a
previously issued Lease at any time prior to the start of construction
based on inadequate design information, unsatisfactory environmental
impacts, or detrimental impact to the Reclamation project, as
determined by Reclamation.
m. Reclamation will be reimbursed by the Lessee for all costs of
Reclamation activities related to the development, reviews of studies,
designs, plans, specifications, activities required for NEPA, National
Historic Preservation Act (NHPA), and Endangered Species Act (ESA)
compliance, construction inspections, operation, inspection, and
maintenance of the powerplant and any related administrative costs.
n. Physical security of existing facilities will be maintained by
Reclamation, or its designee, during construction, operation, and
maintenance activities. The Lessee will not interfere with Reclamation
security activities and will be subject to search, background checks,
etc., as deemed necessary by Reclamation to protect the physical and
information technology security of Reclamation facilities. The Lessee
will be responsible for any incremental security costs incurred by
Reclamation that result from the construction of the Lessee's proposed
powerplant and associated facilities. The Lessee will be required to
have security procedures and practices commensurate with Reclamation
security requirements.
Process Guidelines: The following paragraphs describe major steps
associated with the development of hydroelectric powerplants under a
Lease of Power Privilege with Reclamation. The steps are generally in
sequence but may require preparation well in advance to ensure
completion in a timely manner. Additional requirements may be
necessary, depending upon the nature and impacts of the proposed
hydroelectric project. If water user organization involvement occurs,
the following paragraphs would be modified as appropriate to
accommodate their involvement.
a. After determining jurisdiction, Reclamation will advertise a
formal notice of intent to enter into a Preliminary Permit through an
appropriate public process, such as the Federal Register and local
newspapers. Such notice will also be provided to Western and the
representatives of the current project/program beneficiaries
responsible for repayment of the project.
b. Reclamation will accept competing proposals for a period of 180
days. Reclamation will evaluate all reasonable proposals for
development, select the potential Lessee, and issue a Preliminary
Permit. Preference will be granted according to Section A in Proposal
Content Guidelines above. Where developers have an equal standing with
respect to preference, priority of the proposals submitted will be
based on the date and time that Reclamation receives the application
(the applicant that submitted the earliest dated application will be
given preference). A proposal will be considered timely only if it is
received in the office of the Lease of Power Privilege Coordinator by
or before 12 p.m. (PST) on the designated date. Interested entities are
cautioned that delayed delivery to this office due to failures or
misunderstandings of the entity and/or of mail, overnight, or courier
services will not excuse lateness and are advised to provide sufficient
time for delivery. Late proposals will not be considered. Reclamation
will be available to meet with interested entities only upon written
request to the Lease of Power Privilege Coordinator at the above
address. Reclamation reserves the right to schedule a single meeting
and/or visit to address at one time the questions of all entities that
have submitted questions or requested site visits.
c. Reclamation and the Preliminary Permit holder (Permittee) will
enter into a letter agreement, memorandum of understanding, or other
acceptable agreement to identify roles and responsibilities of the
parties, activities to be addressed prior to the execution of a formal
contract and to establish a reimbursable account to provide/cover
Reclamation's costs. The Permittee will make advances sufficient to
maintain a positive balance for ongoing and required work.
d. The Permittee must coordinate with Western to determine
Western's interest in marketing the power generated under the Lease.
Western will be given first right of refusal to purchase power from the
non-Federal Lessee. The power price charged by the Lessee will be
equivalent to the cost of production plus a reasonable rate of return.
Western will have the responsibility for negotiating power prices with
the Lessee. Western will have the responsibility for consulting with
the firm power contractors in advance of negotiations regarding such
right of first refusal and the pricing of any such power to be
purchased. If Western refuses to purchase power from the Permittee, the
Permittee must coordinate with another appropriate transmission
provider.
e. The Permittee, Reclamation, and project water beneficiary (if
not the Permittee) enter into contracts. Subject to negotiation, the
contract(s) would be structured to address two phases of development
and leasing as follows:
Phase 1 Guidelines
a. A preliminary permit would be issued to the proposed Lessee and
provide for contractor completion of investigations, studies, plans,
preliminary/conceptual designs, estimates, and for making financial
arrangements (in general this includes, but is not limited to, steps
(ii) through (x) below.)
[[Page 6824]]
b. An evaluation of environmental impacts, as required under NEPA,
National Historic Preservation Act (NHPA), and the Endangered Species
Act (ESA), would be included in this phase. Reclamation will be the
lead Federal agency for NEPA and NHPA compliance.
c. NEPA, NHPA, and ESA compliance activities will be the financial
responsibility of the Permittee and will be completed prior to
execution of the Lease. Terms and conditions resulting from these
compliance activities will be incorporated by reference in the Lease.
d. The Permittee would have a maximum of two (2) years from the
date of issuance of the permit to complete the requirements set forth
in the permit.
e. The Preliminary Permit will not be transferable, and may be
canceled by order of Reclamation upon failure of the Permittee to
comply with the conditions of the permit (per the notification
requirements, response timeframes, etc., established under the
Preliminary Permit).
f. Reclamation and Permittee, or developer, representatives will be
named.
g. The Permittee and Reclamation discuss plans for development and
identify needed studies. The Permittee (or their consultant) performs
studies; Reclamation reviews and offers comments. Alternatively, the
Permittee may elect to fund Reclamation to perform the studies. Studies
should include, but are not limited to, the following topics: Safety of
Dam Impacts/Modifications, Site Characteristics and Existing
Facilities, Land Acquisition and Easements, Hydraulics and Hydrology,
Water Rights, Project Features and Design, Power Production,
Transmission, Interconnection and Wheeling, Project Costs, Financial
Alternatives and Energy Cost, Power Value and Marketing, Benefit/Cost
Evaluation (Reclamation Benefit/Cost procedure not applicable),
Environmental Analysis Suitable for Reclamation's Use in the NEPA,
NHPA, and ESA Compliance, Safety Assessment, Project Development Plan
and Construction Schedule, and Operation and Maintenance Plan.
Proposed modifications to existing Reclamation facilities must be
described in detail. Examples include changes in penstock transient
pressures, impacts construction of the project will have on the
performance of Reclamation's facilities during normal, hydrologic
(flooding) and seismic (earthquake) loading conditions, drainage,
increased noise, vibration or heat above the Occupational Safety &
Health Administration (OSHA) standards, operator safety, effects on
discharge capacity, impacts construction and operation of the proposed
project will have on current operational and maintenance plans and
practices, etc.
Structural changes must be shown in detail. Examples include
excavation requirements, new pipe alignments, flanging details, valving
requirements, pressure ratings, thrust blocking plans, clearance
problems, dewatering plans, venting requirements, concrete removal
requirements, fill material requirements, etc.
The need for electrical and hydraulic surge protection must be
evaluated.
Any modifications required for construction of the powerplant that
may affect the safe operation of Reclamation facilities, such as
installation of penstocks, excavation into dam embankments and
foundations, etc., will be scoped, planned, and estimated at this
point. Should facility modification be necessary to address concerns
identified, such modifications will be required to be completed prior
to Reclamation authorizing the start of construction on the proposed
power project.
a. Permittee coordinates project planning with the U.S. Fish and
Wildlife Service in compliance with the Fish and Wildlife Coordination
Act.
b. Permittee submits cultural resources survey to Reclamation for
approval.
c. Permittee submits water rights documentation to Reclamation.
d. Permittee submits evidence of power sales contract/wheeling
agreement to Reclamation.
e. Permittee submits NEPA, NHPA, and ESA documentation, including
the Record of Decision or Finding of No Significant Impact to
Reclamation for approval and signature.
f. Reclamation, Permittee, and project water beneficiaries, as
appropriate, supplement Lease with Environmental Commitment Plan and
Environmental Commitment Checklist.
g. Reclamation issues the Lease. Leases may not be transferred or
facilities sold without written approval of Reclamation.
Phase 2 Guidelines
In general this includes, but is not limited to steps (i) through
(xvi) below.
Subsequent to Reclamation's review and approval of the requirements
identified in the permit, a Lease would be issued to the Lessee that
would provide for final designs, specifications, construction,
operation, and maintenance of the facility by the Lessee. Reclamation
will not be held responsible for the economic and technically
feasibility of the powerplant and associated facilities. The Lessee
must agree to indemnify the United States for any injury, loss, or
damage incurred, resulting from actions under the Lease and any
negligent act or omission of the Lessee in connection with the Lessee's
performance under the Lease. The Lessee will have no claim against the
United States for loss of generation caused by normal or extraordinary
operation or maintenance of the Reclamation project including, but not
limited to, the quantity or quality of water delivery by the
Reclamation project.
The potential Lessee would have a maximum of two (2) years from the
date of issuance of the Preliminary Permit to complete the requirements
set forth in the permit. The Lessee would have a maximum of two (2)
years from the date of the execution of the Lease to develop contract
and complete final designs, specifications, etc., and an additional
year (1) to begin construction. The Lessee would have an additional two
(2) years to complete construction. A maximum of seven (7) years is
allowed, from the date of Preliminary Permit execution to construction
completion. Such timeframes may be adjusted for just cause resulting
from actions and/or circumstances that are beyond the control of the
Lessee.
a. Lessee will prepare technical specifications and drawings
(typically 30 percent design, 60 percent design, 90 percent design, and
final stages are required). Reclamation will review the specification,
drawings and provides comments. Reclamation will have the
responsibility of approving modifications to Reclamation features.
b. Lessee will finalize technical specifications and drawings for
submittal to Reclamation. Lessee will submit construction schedule and
operations and maintenance agreement to Reclamation.
c. Reclamation is responsible for approving technical
specifications, drawings, construction schedule, and operations and
maintenance Agreement.
d. Lessee will submit certificate of liability insurance to
Reclamation. Project size will determine the need for extended
(property damage) coverage. Reclamation will determine the insurance,
bonding limits, and other related requirements.
e. Performance bond will be submitted by Lessee to Reclamation.
f. Lessee will notify Reclamation of construction start date in
advance of onsite construction and provide a copy of the construction
schedule.
[[Page 6825]]
g. Pre-construction meeting will be held with Lessee, Reclamation,
and contractor.
h. Lessee is responsible for obtaining required Federal, State, and
local permits.
i. Lessee will prepare Designers' Operating Criteria (DOC),
Standard Operating Procedure (SOP), and Emergency Action Plan (EAP) and
submit to Reclamation for review and approval, as appropriate.
j. Interim and final construction inspections will be conducted by
Reclamation and Lessee.
k. Lessee will submit Start-Up Testing Plan to Reclamation. The
plan will include new system fault study. Reclamation may require the
Lessee to perform additional testing to ensure the integrity of the
Reclamation project.
l. Lessee will conduct powerplant testing; Reclamation personnel
will witness.
m. Testing documentation and results will be submitted to
Reclamation by Lessee; Reclamation approval required on results that
are pertinent to the Reclamation project.
n. Lessee will furnish as-built drawings to Reclamation.
o. Reclamation will grant permission for commercial operation after
satisfactory testing is complete and documentation submitted to
Reclamation. Lessee will submit first annual lease payment to
Reclamation one (1) year from date of approval for commercial
operation.
p. Reclamation will coordinate with Lessee to update Reclamation
project SOPs, DOC, EAP, Continuity of Operations Plan, Security Plan,
etc.
Dated: November 10, 2010.
Barry S. Mortimeyer,
Chief, Power Operations Division, Mid-Pacific Region.
[FR Doc. 2011-2675 Filed 2-7-11; 8:45 am]
BILLING CODE 4310-MN-P