Sample filing #2

Ward Mill Dam
FERC Project # 9842

APPLICATION FOR SURRENDER OF A HYDRO LICENSE

FEDERAL ENERGY REGULATORY COMMISSION
APPLICATION FOR SURRENDER OF A LICENSE
FOR A MINOR WATER POWER PROJECT
Ward Mill Dam – Project #9842
Initial Statement
1. This is the application of Mr. Ray F. Ward to the Federal Energy Regulatory
Commission for the surrender of a license for the Ward Mill Dam Project # 9842-000, as
described herein.
2. The location of the project is:
State:
County:
Nearby Town:
Stream:

North Carolina
Watauga
Boone NC
Watauga River

3. The exact name, address, and telephone number of the applicant is:
Mr. Ray F. Ward
443 Old Watauga River Road
Sugar Grove, North Carolina, 28679
(828) 297-3213
4. The exact name, address, and telephone number of each person authorized to act as
agent for the applicant:
Andrew C. Givens
2308 Wheeler Rd.
Raleigh, North Carolina 27612
919-605-6125
[email protected]
5.
The applicant is a citizen of the United States and is not claiming preference under
section 7(a) of the Federal Power Act.
6.
CONSULTATION WITH AGENCIES – The applicant consulted with the federal
state, and local agencies as well as other interested parties throughout the licensing application
process 2011 through 2016. Early in 2017 the licensee informally discussed the possibility of
surrendering the license and decommissioning the plant with the primary state agencies that
participated in the licensing process. On or about March 30, the licensee distributed a draft of this
application to these agencies as well as other parties listed on Page 7.

May 19, 2017

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Recommendations regarding the content of this application were received directly from two
agencies; the Hydropower & Special Projects Coordinator for the NC Wildlife Resources
Commission; and the Basin Planning Branch of the Water Resources Division of the NC
Department of Environmental Quality (DEQ). The recommendations have been incorporated in
this application.
Written comments were received from the Basin Planning Branch of DEQ, (pages A.2 – A.3);
and from the NC State Environmental Review Clearinghouse, (pages A.4 – A.16). The comments
of the Natural Heritage Program of the Department of Natural and Cultural Resources (pages A.9
– A.13) submitted through the clearinghouse lists the Species of Concern that may be in the
project area or within 1 mile. These species were studied in the license process and the
Environmental Assessment conducted by the FERC staff, and none were found to be in the
project area.
The response of May 1, 2017 the State Historic Preservation Office on page A.14 indicates that
they have no comment regarding this application. This is consistent with the comments to the
license application dated October 3, 2011, from that office indicating; “We have conducted a
review of the project and are aware of no historic resources which would be affected by the
project.” On this basis, and on reflection of the rather common nature of the equipment involved,
the licensee believes that the plant does not meet the criteria for historic preservation.
We have had other verbal consultation with agencies and interested parties. One party provided
written comments regarding the request, and subsequently requested, in writing, that the comment
be withdrawn from the filing. Those comments are not included here.
7. BRIEF DESCRIPTION OF THE PROJECT - The Ward Mill Dam is located on the
Watauga River in the western portion of Watauga County, North Carolina. The Ward Mill dam
was rebuilt in 1963 with a new rock and concrete dam. The dam is 130 feet long; it is 20 feet high
from the bedrock base to the top of the dam, and 16 feet from the river bed to the top of the dam.
The base of the dam is 21 feet thick. FERC has determined that the Ward Mill Dam is a low
hazard dam. There are two turbine/generator units at the facility. One unit has a capacity of 75
kW and one unit has a capacity of 93 kW for a total installed capacity is 168 kW. The turbines are
connected to the generators via shafts and a belt drive. The powerhouse is integrated into the
south end of the dam and the flow through the turbines returns to the riverbed at the toe of the
dam. The generation at Ward Mill Dam is manually operated with manual starting and operation,
and automatic shutdown. The plant is operated in a run-of-river mode at all times, and is not used
for peaking.
8. RECENT RELICENSING: In 1986 the licensee received a 30 years license to operate
through August 31, 2016. The licensee prepared and filed the license application in August 2014.
The 1986 license expired on August 31, 2016 without a new license, and on September 7, 2016
FERC issued an annual licensee to continue operating until the new license was issued. The
ORDER ISSUING THE SUBSEQUENT LICENSE was issued on February 2, 2017. By letter of
March 4, 2017, the licensee declined the new license and is now filing to surrender the license
entirely. The declining of the new license was acknowledged by a letter dated March 31, 2017,
from Mr. Steve Hocking, Chief of the Environmental and Project Review Branch.
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During the five year long relicensing process, the licensee conducted the required consultations
with the governmental agencies and other interested parties, and conducted biological and
environmental studies to identify the impact of the current run-of-river operation of the project.
The filed information provides a complete record of the current facilities and the environmental
impact of the project.
On Sept 8, 2016, the licensee received a 401 Water Quality Certificate from the NC Water
Resources Division. The licensee recognizes the need for responsible compliance with the
environmental requirements of the 401 certificate. To a significant extent, the provisions for the
401 certificate relates to the maintenance of the run-of-river status of the dam. With the
decommissioning of the plant, the river will not be controlled, and the flow at the dam will be
run-of-river, as proposed by the agencies.
9. INITIAL STATEMENT REGARDING THE SURRENDER OF THE LICENSE:
The licensee has operated this project for the generation of electricity for over 30 years. In filing
the license application, the licensee had hoped that it would be possible for the operation to be
turned over to a family member who could operate the plant. This has not been the case. Further,
it would not be acceptable to the licensee for the license to be transferred to an unknown operator
because of the close proximity of the project to the licensee’s home, and the fact that the
generating facility is integrated with the machine shop and other facilities owned and operated by
the licensee.
In addition, the extra record keeping requirements as well as the additional capital expenses
required by the new license make the continued long term operation economically infeasible. For
these reasons the licensee desires to surrender the existing license, and intends to end the
operation of the project no later than August 31, 2017.
PROJECT DESCRIPTION
1) PROJECT FACILITIES: The August 2014 Application for a Subsequent License includes
comprehensive information regarding the project. The information below may be supplemented
with the information previously provided.
l.1) NUMBER OF GENERATING UNITS: There are two generator units at the facility.
One unit has a capacity of 75 kW and one unit has a capacity of 93 kW for a total installed
capacity of 168 kW. The generators are AC motors that have been converted to serve as induction
generators. The Francis type turbines with 30 inch reaction runners and vertical draft tubes are
connected to the generators via shafts and a belt drive. The turbines were installed in the 1940s to
power the sawmill. The generators and electrical equipment were installed between 1983 and
1986.
1.2) POWERHOUSE: The electric generation is integrated into the licensee’s farm
workshop and lumber mill facility. The building is along the south bank of the river and atop the
south end of the dam. The decommissioning of the project would not require any changes to the
workshop building. The power is sold to Blue Ridge EMC. The utility interconnection point and
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APPLICATION FOR SURRENDER OF A HYDRO LICENSE

the retail point of service to the shop and home are located on the southern wall of the shop
building. It will be necessary for Blue Ridge EMC to make changes to the meter installation, but
the existing distribution system is expected to remain.
1.3) OPERATION: The Ward Mill Dam is a manually operated project which was designed for
manual starting and operating, and automatic shutdown. The plant is operated in a run-of-river mode at all
times, and is not used for peaking. This plant has been operated for 30 years and the annual generation
level has varied from below 290,000 kWh to over 599,000 kWh. The variation is based primarily on the
variation of the annual stream flow.

l.4)
RESERVOIR DESCRIPTION: The reservoir has an estimated surface area of 4.6
acres, with an estimated gross storage capacity of 16.3 acre-feet. The reservoir is approximately
130 wide at the dam, and is approximately 100 feet for much of its length. The dam normally
backs up water approximately 2,500 feet.
1.5) HYDRAULIC CAPACITY AND FLOW: The maximum estimated hydraulic
capacity of the project is 158 cfs. The drainage area of the Watauga River basin at the dam is
estimated to be 92.6 square miles. The USGS in conjunction with the Tennessee Valley Authority
maintains USGS gage 03479000 at the convergence of Cove Creek and the Watauga River,
approximately 200 feet upstream from the impoundment.
1.6) SIZE AND CONSTRUCTION OF PROJECT: The Ward Mill dam was rebuilt in
1963 with a new rock and concrete dam, reinforced with one inch diameter vertical steel rods
placed approximately 4 foot apart across the interior structure of the dam. These rods are
imbedded 2 and 1/2 feet into the bedrock with reinforced steel running horizontally through the
interior of the dam
2)
DECOMMISSIONING PLAN – The licensee expects to discontinue operation of the
generation on the earlier of September 1, 2017, or the issuance of the order of the Commission
permitting the surrender of the license. With the issuance of the order of the Commission
permitting the surrender of the license, the licensee will carry out the following steps to
decommission the plant:
2.1) Disconnection of the generator controls from the utility interconnection point. This
will include the opening of interconnection switches which tie the generation to the retail delivery
point; the removal of the generation breaker(s) from the panel in the vicinity of the
interconnection point; the removal of the control panel adjacent to the generators; and the removal
of wiring connecting the generation to the utility interconnection point. All of this is inside the
powerhouse/workshop building. With the removal of this equipment there can be no power
delivered to the grid. The interconnection will be opened by the earlier of September 1, 2017, or
following the issuance of the order of the Commission granting the surrender of the license. The
licensee will offer the generators, control equipment, and wiring for sale following
decommissioning.
2.2) The removal of both generators from the system. After the generators are
disconnected from wiring and the drive belts will be removed. The equipment will be offered for
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sale following the decommissioning. The generators may remain in place until sold and removed
by the buyer.
2.3) Removal of the turbines. The turbines and related equipment will be offered for sale
or scrapped. The turbines may remain in place until they are sold.
2.4) Building Changes. All anticipated changes will be within the existing shop and
power house, and there will be no changes to the exterior of the existing buildings or structures.
2.5) Interconnection with the Utility. The plant is connected to Blue Ridge Electric
Cooperative at a 220/480v retail delivery point which is at the end of a 14.4kV primary
distribution line on the Cooperative’s distribution system. This distribution line and the
secondary facilities that serve the generation plant, also serves the licensee’s shop facilities and
the licensee’s home. With the termination of the generation, the utility will not have to change
any of the existing distribution facilities, although Blue Ridge EMC may at some point modify
the meter and interconnection facilities.
2.6) Recreation Facilities. The canoe portage and access to the river for fishermen and
others will be maintained as described in the existing license and the recently declined license.

ENVIRONMENTAL MATTERS
3.1) GENERAL:
The licensee filed an Application for a Subsequent License on August 29, 2014, and the
subsequent license was issued February 2, 2017. Due to the circumstances of the licensee, and the
change in the requirements of the license, the licensee declined to accept the license in a letter for
FERC dated March 4, 2017.
In the licensing process, the licensee and participating agencies reviewed the environmental issues
related to the project. Included with the application was the report entitled, Effects of Ward’s Mill
Dam on Fishes, Mussels, and Hellbenders in the Watauga River, Watauga County North
Carolina by Dr. Michael M Gangloff, Michael Perkins, Jorden Holcomb, and M. Worth Pugh.
Also included with the application was the report, Ward Mill Dam Hydropower Project, Run of
River Operation by Mark A. Cantrell, US Fish and Wildlife Service; Chris Goudreau, NC
Wildlife Resources Commission: and Fred Tarver, NC Division of Water Resources. These
reports and significant additional environmental information is included in this docket in the
license application filings, and a portion of the information is included below. The information in
Exhibit E of the license application is relevant to this filing, to the extent applicable.
Under the original 1986 license, the project has been operated as a run-of-river project, with the
project outflow matching the project inflow. With this operating procedure, when the inflow is
insufficient to flow over the dam while operating, the generators are shut off and the flow over
and past the dam is the same as the inflow. This requirement remains in place under the annual
authorization of September 7, 2016.

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FERC Project # 9842

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With the surrendering of the license, there will no generation and no control of the flow of the
river. Thus, the site will remain run of river. The environmental impact of the dam will be
essentially the same as under the terms of the current annual license. With the surrender of the
FERC license, the licensee will submit the necessary information to the Dam Safety Program of
NC Department of Environmental Quality – Division of Energy Materials, and Land Resources to
determine if the dam will be exempt, or under the jurisdiction of that agency.
3.2) ENVIRONMENTAL DESCRIPTION AT THE WARD MILL DAM
3.2.1) LOCATION: The Ward Mill Dam hydroelectric project is located on the Watauga
River in Watauga County , approximately 10 miles west of Boone, North Carolina, approximately
3000 feet downstream from the confluence of Cove Creek with the Watauga River. This is
approximately 7 miles from the North Carolina-Tennessee State Line. The project is located in
the Laurel Creek Township, Northern Latitude 36 degrees, 14 minutes, 20 seconds and Western
Longitude 81 degrees, 49 minutes, 20 seconds. The project boundaries remain as in the 1986
license.
The dam is considered a low hazard dam by FERC. The impoundment is approximately 4.6
acres. A United States Geological Survey Gaging Station, Watauga River near Sugar Grove,
North Carolina (03479000), is located 1/2 mile upstream of the dam and has been recording
stream flow data since 1939. The drainage area at the Gaging Station is 92.1 square miles, and the
drainage area at the dam is estimated to be 92.6 square miles. At the gage the peak discharge is
50,800 cfs; the minimum daily discharge is 13 cfs; and the average daily discharge in the prior 10
years has been 158 cfs.
3.2.2) RECREATION: The primary recreational pursuits include fishing, canoeing, and
rafting in the immediate vicinity of the project will remain with the surrender of the license. The
maintenance of the natural habitat and undeveloped character of the area as well as the
recreational access will remain.
For boaters that are traveling along the river, there is a portage trail that begins at the cleared
takeout on the southwest side of the river, approximately 150 feet above the dam. This trail will
remain after the license is surrendered.
3.3) EXPECTED ENVIRONMENTAL IMPACTS
No construction, rehabilitation, alteration or repair of any site facilities is expected at this
time. The elimination of the generation will eliminate the control of the water flow at this site and
improve the run-of-river attributes of the site.
There is no known critical habitat, or endangered or threatened species in the area. No known
recreational resources would be impacted. The surrender of the license should not affect the
fishery resources, including trout, in the immediate vicinity of the project or in the river basin.

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Contacts and Consultation List
Surrender of the FERC License for Ward Mill Dam

FERC Project # 9842
Organization
US Army Corps of Engineers
Wilmington Office
Federal Energy Regulatory
Commission
Atlanta Office
Washington Office
US Fish and Wildlife Service
Asheville NC Office
National Forest Service
Asheville NC Office
North Carolina Environmental
Clearinghouse
NC Wildlife Resources Commission
NC Dept. of Cultural Resources NC
Historic Preservation Office
NC DEQ
NC DEQ
Division of Water Resources
401 & Buffer Permitting Unit
NC DEQ
Division of Water Resources
401 & Buffer Permitting Unit
NC DEQ
Division of Water Resources
Watauga County
Town of Boone
High Country Council of
Governments
Blue Ridge Electric Membership
Corporation
Watauga River Keeper
Appalachian Voices
Trout Unlimited NC Representative
American Whitewater
American Rivers
Appalachian State University

May 19, 2017

Contact

Email Address

Mr. George Piner
910-251-4762

[email protected]

Mr. Randy Pool
678-245-3079
Mr. Steve Hocking
202-502-8753
Mr. Bryan Tompkins
828-258-3939 x240
Ms. Julie Moore
828-257-4859
Ms. Shelia Green
919-807-2425
Mr. Christopher Goudreau
828-652-4360
Ms. Renee Gledhill-Earley
919-807-6583

[email protected]

Ian McMillan
919-707-9026

[email protected]

Jennifer Burdette
919- 807-6364

[email protected]

Karen Higgins
919-807-6360

[email protected]

Mr. Fred R Tarver III
919-707-9029
Mr. Joseph Furman
(828) 265-8043
Mr. Rick Miller
Utility Director

[email protected]

Mr. Rick Herndon

[email protected]

Mr. Lee Layton
828-759-8939
Mr. Andy Hill
828-278-9821
Mr. Michael Smith
828-584-2848
Kevin Colburn
Mark Singleton
Ms. Erin McCombs

[email protected]

Mr. Joe Carter
Dr. Michael Gangloff
Dr. Dennis Scanlin
828-262-6361

[email protected]
[email protected]

[email protected]
[email protected]
[email protected]
[email protected]
[email protected]
[email protected]

[email protected]
[email protected]

[email protected]
[email protected]
[email protected]
[email protected]
[email protected]

[email protected]

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Attachment – Agency Comments

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