Rock Creek - Cresta Settlement Agreement

Rock Creek - Cresta Project

FERC Project No. 1962

Relicensing Settlement Agreement

1. Introduction

1.1 Parties. This SETTLEMENT AGREEMENT ("Settlement") is made and entered into pursuant to Federal Energy Regulatory Commission (“FERC”) Rule 602, 18 CFR § 385.602, by and among Pacific Gas and Electric Company (“Licensee”), the United States Department of Agriculture Forest Service (“FS”), the United States Department of the Interior Fish and Wildlife Service (“FWS”), the California Department of Fish and Game (“CDFG”), California State Water Resources Control Board (‘SWRCB”), Natural Heritage Institute (“NHI”), American Whitewater (“AW”), Friends of the River (“FOR”), Plumas County (“PC”), California Outdoors (“CO”), California Trout (“CT”), Chico Paddleheads (“CP”), and Shasta Paddlers (“SP”) each referred to individually as a “Party” and collectively as “Parties.” These thirteen Parties may also be referred to as the “Original Parties.”

The Parties to this Settlement agree as follows:

1.2 Recitals

1.2.1 On September 28, 1979, Licensee filed with the Federal Energy Regulatory Commission (“FERC”) an application for a new license (“New Project License”) for the Rock Creek - Cresta Project, FERC Project No. 1962 (“Project”) located on the North Fork Feather River (“NFFR”) in Plumas and Butte counties, California.

1.2.2 On October 9, 1991 Licensee and CDFG entered into a Fish and Wildlife Agreement (“1991 Fish and Wildlife Agreement”) to establish minimum streamflows and other resource management measures for the protection, mitigation, and enhancement (“PM&E”) of fish and wildlife resources affected by the Project. This Agreement updates and supersedes the 1991 Fish and Wildlife Agreement.

1.2.3 On March 15, 1996 FS issued revised preliminary conditions for the Project pursuant to 18 CFR §4.34 b(1) and in furtherance of its mandatory conditioning authority under Section 4(e) (“Preliminary 4(e) Conditions”) of the Federal Power Act (“FPA”). Various Parties and others subsequently submitted comments and appeals to FERC and FS regarding the Preliminary 4(e) Conditions.

1.2.4 On November 1, 1996 FERC issued a Draft Environmental Assessment for the Project (“DEA”) pursuant to the National Environmental Policy Act (“NEPA”). Various Parties and others subsequently submitted comments to FERC regarding the DEA.

1.2.5 In July 1998, Licensee, FS, FWS, CDFG, SWRCB, AW, FOR, PC, NHI, CT, California Sportfishing Protection Alliance, SP, and CP met and agreed to engage in discussions to resolve issues related to flow in the Rock Creek and Cresta reaches of the NFFR. Since those initial discussions, Licensee has provided several progress updates to the FERC and requested that additional time be allowed to continue the process. Over time the group became known as the Rock Creek - Cresta Relicensing Collaborative (“Collaborative”) and subcommittees were formed to discuss technical issues on fisheries and whitewater recreation. Meetings of the Collaborative were publicly noticed by FERC.

1.2.6 This Settlement is an end product of the Collaborative’s work.

1.3 Effective Date of Settlement. This Settlement becomes effective as of September 18, 2000 (“Effective Date”).

1.4 Term of Settlement. The term of this Settlement shall commence on the Effective Date and shall continue (unless terminated as otherwise provided herein) for the term of the New Project License (subject to FERC's reserved authority under the New Project License to require modifications), plus the term(s) of any annual license(s) which may be issued after the foregoing New Project License has expired, or until the effective date of any FERC order approving surrender of all or part of the Project under the FPA.

1.5 Definitions.

i. AF: acre-foot of water

ii. ADR: Alternative Dispute Resolution - see Paragraph 4.9.1.

iii. Basin Plan: The Water Quality Control Plan for the Central Valley Region, the Sacramento and San Joaquin River Basins

iv. Beneficial Uses: Beneficial Uses include municipal and domestic water supply, hydropower generation, water contact recreation, canoeing and rafting, non-contact water recreation, cold freshwater habitat, cold freshwater spawning habitat, and wildlife habitat, as designated in the Basin Plan, or any revision thereto.

v. Block Loading: Operational mode of a powerhouse in which the generation capacity (and resulting cfs release) is held at or near a constant level for an extended period of time.

vi. Cap Flows: Maximum level to which the Minimum River Flow level may be adjusted as provided in Appendix A, Table A.

vii. CD: Critically Dry water year type as defined in Appendix A, Section II.

viii. cfs: cubic feet per second

ix. Collaborative: See Paragraph 1.2.5.

x. Controlled Spill: Release of water from a Project reservoir at times when the release could have otherwise been controlled (not spilled) by increasing the flow through the generating units or controlling inflows by controlling releases from upstream reservoirs.

xi. Cresta Reach: That portion of the NFFR between Cresta Dam and the Cresta Powerhouse.

xii. DEA: Draft Environmental Assessment - see Paragraph 1.2.4.

xiii. Disputing Party; Disputing Parties: See Paragraph 4.9.1.

xiv. Dry: Dry water year type as defined in Appendix A, Section II.

xv. Effective Date: See Paragraph 1.3.

xvi. ESA: Federal Endangered Species Act - see Paragraph 2.6.1.

xvii. ERC: Ecological Resources Committee as established in Appendix A, Section VIII and as fully described in Appendix B, Section II.

xviii. FPA: Federal Power Act - see Paragraph 1.2.3.

xix. Good Faith: Honesty of purpose, free from intention to defraud, faithful to one’s duty or obligation.

xx. Heat Storm: A multi-day sequence of extreme temperatures across California or the western-U.S. that results in near-record electricity use and voluntary power use reductions or involuntary, rotating power outages.

xxi. Inconsistent with this Settlement: See Paragraph 4.3.1.

xxii. Minimum River Flows: Required minimum flows in the Rock Creek and Cresta reaches as provided in Section II of Appendix A.

xxiii. NA: not applicable

xxiv. NFFR: North Fork Feather River

xxv. NEPA: National Environmental Protection Act - see Paragraph 1.2.4.

xxvi. New Project License: See Paragraph 1.2.1.

xxvii. 1991 Fish and Wildlife Agreement. See Paragraph 1.2.2

xxviii. Normal: Normal water year type as defined in Appendix A, Section II.

xxix. Notice: See Paragraph 5.9.

xxx. Prattville Intake Modifications: Physical improvements in the vicinity of the Prattville Intake to attract cold water to the intake.

xxxi. Party; Parties: See Paragraph 1.1.

xxxii. PM&E: protection, mitigation or enhancement measure.

xxxiii. Project: See Paragraph 1.2.1.

xxxiv. Pulse Flows: Short term elevated levels of release from Projects dams in amounts and durations specified in Appendix A, Table A.

xxxv. Ramping Rate: The rate of change in a flow release or spill from a dam expressed as an increase or decrease in discharge (in cfs) over a period of time. See Appendix A, Section II.5.

xxxvi. Reasonable Control Measures: Measures to control water temperatures as specified in Section I of Appendix A.

xxxvii. Resolved Subjects: See Paragraph 2.2.

xxxviii. Rock Creek Reach: That portion of the NFFR between Rock Creek Dam and Rock Creek Powerhouse.

xxxix. Section 4(e) Conditions: Any revision of FS’ proposed license conditions under FPA Section 4(e) subsequent to the Preliminary 4(e) Conditions issued on March 15, 1996.

xl. Submerged Curtain/Skimmer Wall: A design concept for a Prattville Intake Modification that consists of a flexible membrane blocking warm water strata and up to 1250 feet long placed upstream of the Prattville Intake to allow the intake to attract colder water

xli. Uncontrolled Spill: Release of water from a Project reservoir at times when flow into the reservoir, excluding releases from upstream reservoirs that can be controlled, exceeds to sum of the instream flow release requirement plus the current flow capacity of the generating units.

xlii. Water Year Type: See Appendix A, Section II.

xliii. Wet: Wet water year type as defined in Appendix A, Section II.

2. Purpose of Settlement

2.1 Purpose. The purpose of this Settlement is to resolve among the Parties all streamflow issues for ecological purposes and river-based recreational use and other Resolved Subjects in support of FS issuing its Final 4(e) Conditions and FERC issuing a New Project License. For this purpose, the Parties agree that this Settlement constitutes an entire agreement that provides an appropriate balancing of hydroelectric power generation with the Resolved Subjects.

2.2 Resolved Subjects. Except as provided in Paragraph 2.3, the Parties agree that this Settlement fairly, reasonably, and appropriately resolves streamflows and other subjects listed in Table 1 (“Resolved Subjects”) in support of FS issuing Final 4(e) Conditions and FERC issuing a New Project License.

Table 1

Subjects Resolved by this Settlement

(a) Streamflows for PM&E of fish, wildlife, and other aquatic biota in Project-affected stream reaches

(b) Streamflows for PM&E of riparian habitat in Project-affected stream reaches

(d) Streamflows for whitewater boating and other river-based recreation on the Rock Creek and Cresta reaches

(e) Water quality associated with Project operations and facilities, including water temperatures

(f) Streamflow fluctuations from Project operations, including Ramping Rates

(g) Streamflow gaging for compliance monitoring

(h) Stream ecology monitoring

(i) Whitewater boating use monitoring

(j) Streamflow information for use by the public

(k) Access facilities for whitewater boating on the Rock Creek and Cresta reaches

(m) Adjustment of PM&E measures stated in Appendix A and B through adaptive management over the term of the license

(n) Facility modifications to implement the PM&E measures stated in Appendix A

(o) Administration of Settlement Agreement

(p) Term of New Project License

(q) River sediment management

2.3 Unresolved Subjects. This Settlement leaves unresolved specific subjects related to the Resolved Subjects. These unresolved subjects are listed in Table 2. This Settlement also does not resolve subjects not specifically listed in Table 1 and Table 2.

Table 2

Disputed Subjects Not Resolved by this Settlement

(a) Regulatory approvals needed for relicensing of the Project.

(b) Reasonable water temperature control measures for protection of water quality of the NFFR that may be sought or required in the relicensing proceedings for the North Fork Feather River Project (No. 2105) and Poe Project (No. 2107); or in any proceeding to amend the New Project License to provide for coordinated operations of this Project, the North Fork Feather River Project, and the Poe Project.

2.4 Relationship to 1991 Fish and Wildlife Agreement. This Settlement supersedes the 1991 Fish and Wildlife Agreement, provided CDFG and Licensee are Parties. If CDFG or Licensee is not a Party or withdraws from this Settlement, then the superseded terms of the 1991 Fish and Wildlife Agreement shall be revived and again become in full force and effect between Licensee and CDFG to the extent permissible under applicable state and federal law.

2.5 No Precedent for Other Proceedings. This Settlement is made upon the express understanding that it constitutes a negotiated resolution of Resolved Subjects. No Party shall be deemed to have approved, admitted, accepted, or otherwise consented to any operation, management, valuation, or other principle underlying or supposed to underlie any of the Resolved Subjects, except as expressly provided herein. Nothing in this Settlement is intended or shall be construed as a precedent with regard to any other proceeding or hydroelectric project, except as expressly provided in Appendix A, Section I.

2.6 Compliance with Legal Responsibilities. Nothing in this Settlement is intended to or shall be construed to affect or limit the authority of any Party to fulfill its statutory, regulatory, or contractual responsibilities under applicable law. However, by entering into this Settlement the Parties with such responsibilities represent that they believe their responsibilities relative to Resolved Subjects have been, are, or can be met for the purpose stated in Paragraph 2.1, consistent with and by the terms of this Settlement.

2.6.1 ESA and FPA Section 18 Responsibilities Not Affected. Nothing in this Settlement is intended to or shall be construed to restrict or affect the continuing responsibilities of FERC or any Party under the Endangered Species Act (“ESA”), including the implementing regulation at 50 C.F.R. § 402.16. Further, notwithstanding any other provision in this Settlement, this Settlement is not intended to and shall not be construed to address, affect, or apply to the Secretary of the United States Department of the Interior’s independent authority under FPA Section 18 to prescribe fishways, or Licensee’s right to dispute such authority.

2.6.2 CWA Responsibilities Not Affected. Nothing in this Settlement is intended to or shall be construed to limit or otherwise affect the authority or responsibilities of Licensee, SWRCB, or any other Party under the Clean Water Act, Porter-Cologne Water Quality Control Act, or implementing regulations, in connection with: (a) the relicensing proceedings for the North Fork Feather River Project (No. 2105) and Poe Project (No. 2107); or (b) any proceeding to amend the New Project License to protect Beneficial Uses through coordinated operations of the Project, the North Fork Feather River Project and Poe Project. In particular, this Settlement shall not affect the SWRCB’s authority to impose additional or more stringent requirements for Project Nos. 2105 and 2107 as part of the relicensing proceedings for those projects. In any proceeding where the SWRCB has legal authority to require compliance with water quality standards or other appropriate requirements, and in light of its 1987 waiver of the water quality certification of the New Project License for this Project, this Settlement shall not be construed as a representation that the measures incorporated into this Settlement are adequate to ensure compliance with such standards and requirements.

2.7 Reservation of Claims, Rights, and Responsibilities. Each Party reserves all claims, rights, and responsibilities, which it may otherwise have with respect to any subjects not listed as Resolved Subjects. Nothing in this Settlement is intended or shall be construed to affect or restrict any Party's participation in or comments about compliance with the New Project License, future relicensing of the Project subsequent to the current relicensing, or any other project licensed to Licensee.

2.8 Term of New Project License. The Parties agree that the term of the New Project License shall be for a nominal period of 30 years and do not object if the FERC may choose to extend the term as needed to make the Project No. 1962 license expiration coincident with the expiration of new licenses anticipated on Project No. 2105 and No. 2107.

3. Use of Settlement in New Project License and Section 4(e) Conditions

3.1 Protection, Mitigation, and Enhancement Measures Recommended to be Included in New Project License. Subject to Paragraphs 3.2 and 3.3, the Parties respectfully request that FERC accept and incorporate, without material modification, as license articles all of the PM&E measures stated in Appendix A of this Settlement. Subject to the same limitation, the Parties further request that FERC not include in the New Project License additional articles on Resolved Subjects except as may be necessary to enable FERC to ascertain and monitor Licensee’s compliance with the conditions of the New Project License and its rules and regulations under the FPA.

3.2 Protection, Mitigation, and Enhancement Measures Recommended to be Included in Section 4(e) Conditions. The Parties respectfully request that FS accept and incorporate, without material modification, as Section 4(e) Conditions all relevant PM&E measures stated in Appendix A of this Settlement. The Parties further request that FS not include in its Section 4(e) Conditions additional conditions on Resolved Subjects. FS agrees to propose as Section 4(e) Conditions on Resolved Subjects the PM&E measures stated in Appendix A of this Settlement which it determines are within its jurisdiction to prescribe as Section 4(e) Conditions, except to the extent that any changes result from its analysis under NEPA, National Forest Management Act, and any other applicable law or regulation. This paragraph shall not be read to predetermine or limit the outcome or lawful discretion of FS in issuing Section 4(e) Conditions or in adopting Section 4(e) Conditions inconsistent with those recommended herein.

3.3 Relationship of Settlement to Section 7 Consultation. The Parties acknowledge that if FERC submits the PM&E measures stated in Appendix A as part of the proposed action for consultation under Section 7 of the ESA, FWS may in its lawful discretion identify PM&E measures different from or additional to those set forth in Appendix A and Appendix B to minimize the effects of take of listed species.

3.4 Measures Agreed to But Not to be Included in the New Project License or Section 4(e) Conditions. Measures agreed to among the Parties which are not to be incorporated in the New Project License or FS Section 4(e) Conditions are stated in Appendix B.

4. Implementation of Settlement

4.1 Support of Settlement. The Parties shall be bound by this Settlement for the term stated in Paragraph 1.4, provided the New Project License is consistent with the terms of this Settlement, and specifically the PM&E measures stated in Appendix A hereto.

4.2 Support for Issuance of New Project License. To the extent permitted by applicable law, the Parties shall support or advocate through appropriate written communications to FERC and FS, this Settlement and the PM&E measures stated in Appendix A hereto. For Resolved Subjects and subject to Paragraph 3.3, the Parties agree not to propose, support, or communicate to FERC or FS any comments, recommended PM&E measures, or license conditions other than ones consistent with this Settlement. Subject to Paragraph 3.3, prior to the issuance of the New Project License, and at the request of Licensee, the Parties shall timely support this Settlement in written communications to any other administrative agency with advisory or mandatory conditioning authority over issuance of the New Project License, provided this sentence shall not apply to the agency exercising the authority.

4.3 New Project License, Final 4(e) Conditions, or Other Mandatory Conditions Inconsistent with this Settlement

4.3.1 New Project License. If the New Project License issued by FERC contains any material modification of the PM&E measures stated in Appendix A or Appendix B, incorporates fewer than all of the PM&E measures stated in Appendix A, or includes additional measures related to Resolved Subjects (“inconsistent with this Settlement”), this Settlement shall be deemed modified to conform to the New Project License, unless a Party provides Notice that it disputes the inconsistency within 30 days after the date of the license order, and that Party initiates the Alternative Dispute Resolution (“ADR”) procedures stated in Paragraph 4.9.1 - Paragraph 4.9.3. The disputing Party(s) may, in addition, initiate the rehearing procedure described in Paragraph 4.4.1. If the New Project License does not contain all of the PM&E measures stated in Appendix A because FERC expressly determines that it does not have jurisdiction to adopt or enforce the omitted PM&E measures, the Parties agree that they shall be bound by the entire Settlement, including those recommended PM&E measures omitted by FERC, provided the New Project License contains those PM&E measures stated in Appendix A over which FERC determines it does have jurisdiction and the New Project License is otherwise consistent with this Settlement.

4.3.2 Final 4(e) Conditions. If any Final 4(e) Condition is inconsistent with this Settlement, this Settlement shall be deemed modified to conform to the Final 4(e) Conditions, unless a Party provides Notice that it disputes the inconsistency during the 45-day appeal period under 36 CFR § 215.13, and that Party initiates the ADR procedures stated in Paragraph 4.9.1 - Paragraph 4.9.3. The disputing Party(s) may, in addition, initiate the appeal procedure described in Paragraph 4.4.2. If the Final 4(e) Conditions do not contain all of the PM&E measures stated in Appendix A because FS expressly determines that it does not have jurisdiction to adopt or enforce the omitted PM&E measures, the Parties shall be bound by the entire Settlement, including those recommended PM&E measures omitted by FS, provided the Final 4(e) Conditions contain those PM&E measures stated in Appendix A over which FS determines it does have jurisdiction and the Final 4(e) Conditions are otherwise consistent with this Settlement.

4.3.3 Other Mandatory License Conditions. If an agency other than FS files with FERC any mandatory license condition that is inconsistent with this Settlement, this Settlement shall be deemed modified to conform to such condition, unless a Party provides Notice that it disputes the inconsistency within 30 days after the date of filing of such condition, and that Party initiates the ADR procedures stated in Paragraph 4.9.1 - Paragraph 4.9.3. The disputing Party(s) may, in addition, initiate any appeal procedure applicable to the agency that issued such condition. If such mandatory license conditions do not contain all of the PM&E measures stated in Appendix A because the issuing agency expressly determines that it does not have jurisdiction to adopt or enforce the omitted PM&E measures, the Parties agree that they shall be bound by the entire Settlement, including those recommended PM&E measures omitted by the issuing agency, provided the mandatory license conditions contain those PM&E measures stated in Appendix A over which issuing agency determines it does have jurisdiction, and the mandatory license conditions are otherwise consistent with this Settlement.

4.4 Appeal of New Project License, Final 4(e) Condition, or other Mandatory License Conditions Inconsistent with this Settlement.

4.4.1 Appeal to FERC. Any Party may petition FERC for rehearing or seek judicial review of any New Project License article, or omission of PM&E measures stated in Appendix A, that is inconsistent with this Settlement. The ADR requirements stated in Paragraph 4.9.1 - Paragraph 4.9.3 do not preclude any Party from timely filing for and pursuing rehearing under 18 C.F.R. § 385.713(b), or judicial review, of the inconsistent license article or any other license article that relates to subjects not listed as a Resolved Subject. However, the Parties shall follow the ADR procedures stated in Paragraph 4.9.1 - Paragraph 4.9.3 to the extent reasonably practicable while such appeal of an inconsistency is pursued. If any Party or non-Party files for administrative rehearing or judicial review of any New Project License article that is inconsistent with this Settlement, Licensee’s duties under this Settlement related to that article are suspended to the extent necessary to enable Licensee to comply with the license. If a Party has filed for rehearing or judicial review of any New Project License article that is inconsistent with this Settlement and the Parties subsequently agree to modify this Settlement to conform to the inconsistent article, the filing Party(s) shall withdraw the appeal, or recommend such withdrawal, as appropriate. Except as provided in Paragraph 4.3.1 for omissions based on jurisdiction, if any New Project License article is inconsistent with this Settlement after a final and non-appealable administrative or judicial decision on the appeal, this Settlement shall be deemed modified to conform to the final decision unless a Party provides Notice that it disputes the inconsistency within 45 days after the date of the final decision and initiates the ADR procedures stated in Paragraph 4.9.1 - Paragraph 4.9.3. Except as necessary to fulfill a statutory or regulatory responsibility or policy, the Parties have a continuing duty to support this Settlement, or as appropriate, recommend such support, during an administrative rehearing or judicial review.

4.4.2 Appeal to FS. A Party may seek administrative rehearing or judicial review of any Final 4(e) Condition, or omission of PM&E measures stated in Appendix A, that is inconsistent with this Settlement. The ADR requirements of Paragraph 4.9.1 - Paragraph 4.9.3 do not preclude any Party from timely filing and pursuing an appeal under 36 CFR § 215.13, or judicial review, of any Final 4(e) Condition that is inconsistent with this Settlement, or any other Final 4(e) Condition that relates to subjects not listed as a Resolved Subject. However, the Parties shall follow ADR procedures stated in Paragraph 4.9.1 - Paragraph 4.9.3 to the extent reasonably practicable while any such appeal of an inconsistency is pursued. If a Party has filed for administrative rehearing or judicial review of any Final 4(e) Condition that is inconsistent with this Settlement and the Parties subsequently agree to modify this Settlement to conform to the inconsistent condition, the filing Party(s) shall withdraw the appeal, or recommend such withdrawal, as appropriate. Except as provided in Paragraph 4.3.2 for omissions based on jurisdiction if any Final 4(e) Condition is inconsistent with this Settlement after the final and non-appealable decision on appeal, this Settlement shall be deemed modified to conform to the final decision, unless a Party provides Notice that it disputes the inconsistency within 45 days after the date of the final decision, and that Party initiates the ADR procedures stated in Paragraph 4.9.1 - Paragraph 4.9.3. Except as necessary to fulfill a statutory or regulatory responsibility or policy, all Parties have a continuing duty to support this Settlement, or as appropriate, recommend such support, during an administrative rehearing or judicial review.

4.4.3 Appeal to other Agency with Mandatory Conditioning Authority. Any Party may seek administrative rehearing or judicial review of any mandatory license condition that, as filed with FERC by an agency other than FS, is inconsistent with this Settlement. The ADR requirements stated in Paragraph 4.9.1 - Paragraph 4.9.3 do not preclude any Party from timely filing and pursuing such appeal of a mandatory license condition that is inconsistent with this Settlement, or any other mandatory license condition that relates to subjects not listed as a Resolved Subject. However, the Parties shall follow ADR procedures stated in Paragraph 4.9.1 - Paragraph 4.9.3 to the extent reasonably practicable while any such appeal of an inconsistency is pursued. If a Party has filed for administrative rehearing or judicial review of any mandatory license condition that is inconsistent with this Settlement, and the Parties subsequently agree to modify this Settlement to conform to the inconsistent condition, the filing Party(s) shall withdraw the appeal, or recommend such withdrawal, as appropriate. If any mandatory license condition is still inconsistent with this Settlement after a final and non-appealable administrative or judicial decision on the appeal, this Settlement shall be deemed modified to conform to the final decision, unless a Party provides Notice that it disputes the inconsistency within 45 days after the date of the final decision, and that Party also initiates the ADR procedures stated in Paragraph 4.9.1 - Paragraph 4.9.3. Except as necessary to fulfill a statutory or regulatory responsibility or policy, all Parties have a continuing duty to support this Settlement, or as appropriate, recommend such support, during such administrative rehearing or judicial review.

4.5 Cooperation Among Parties. The Parties shall cooperate in the performance of this Settlement and compliance with related license articles. Among other things, the Parties shall cooperate in implementing the PM&E measures, conducting studies, performing monitoring, and conducting all other activities within their statutory or regulatory authorities related to the measures stated in Appendices A & B of this Settlement, as may be modified in the New Project License. Further, subject to Paragraph 2.6, inclusive of 2.6.1 and 2.6.2, and upon Licensee’s request, the Parties shall provide written communications of support in any administrative approval that may be required for implementation of this Settlement or related articles of the New Project License, provided this sentence shall not apply to the agency exercising the authority.

4.5.1 Responsibility for Costs. Licensee shall pay for the cost of actions required of Licensee by this Settlement or the New Project License. Licensee shall have no obligation to reimburse or otherwise pay any other Party for its assistance, participation, or cooperation in any activities pursuant to this Settlement or the New Project License unless expressly agreed to by Licensee or as required by law.

4.5.2 Licensee Solely Responsible for Operations of Project. By entering into this Settlement, none of the Parties, except for Licensee, have accepted any legal liability or responsibility for the operation of the Project.

4.5.3 Availability of Funds. Implementation of this Settlement for a Party that is a federal agency is subject to the requirements of the Anti-Deficiency Act, 31 United States Code, Section 1341, and the availability of appropriated funds. Nothing in this Settlement is intended or shall be construed to require the obligation, appropriation, or expenditure of any money from the U.S. Treasury. The Parties acknowledge that the Parties that are federal agencies shall not be required under this Settlement to expend any federal agency’s appropriated funds unless and until an authorized official of each such agency affirmatively acts to commit such expenditures as evidenced in writing. Implementation of this Settlement by Parties that are state agencies is subject to the availability of appropriated funds. Nothing in this Settlement is intended or shall be construed to require the obligation, appropriation, or expenditure of any money from the Treasury of the State of California. The Parties acknowledge that the Parties that are state agencies shall not be required under this Settlement to expend any appropriated funds unless and until an authorized official of each such agency affirmatively acts to commit such expenditures as evidenced in writing.

4.5.4 FS Participation in Settlement. FS is not included in the definition of the words “Party” or “Parties” as used in Paragraphs 3.1, 3.2, 4.1, 4.2, 4.3.2, 4.4.1, 4.4.2, 4.5, and 4.7.1 of this Settlement. Additionally, FS’ obligations under and participation in this Settlement are fulfilled upon issuance of a New Project License containing Final 4(e) Conditions that are no longer subject to administrative appeal or judicial review. Notwithstanding any provision to the contrary, nothing in this Settlement is intended or shall be construed to create FS authority over a subject that is not within its existing authority.

4.5.5 Escalation of Costs. Unless otherwise indicated, costs specified as a year 2000 cost basis shall be escalated (starting in January 2001) based on the U. S. Gross Domestic Product - Implicit Price Deflator (GDP-IPD). Costs not specified as a year 2000 cost basis are constant dollars not subject to escalation.

4.6 Implementation Schedule. Implementation of the PM&E measures stated in Appendix A shall begin after issuance of the New Project License and consistent with the schedule specified in Appendix A (as may be modified by the New Project License). Implementation of the measures stated in Appendix B shall begin consistent with the schedule specified in Appendix B. Within six months after issuance of the New Project License, Licensee shall prepare and provide to all Parties Licensee’s planned schedule for implementing the PM&E measures recommended in this Settlement and incorporated in the New Project License. The schedule shall specify dates for initiation, progress reporting, monitoring and completion, as appropriate, for each such PM&E measure and shall include milestones for major activities.

4.7 Reopener or Amendment of New Project License.

4.7.1 Reopener. Except as required to fulfill statutory or regulatory responsibilities or as provided in Paragraph 4.7.2, a Party to this Settlement may seek to modify, or otherwise reopen during the term of this Settlement the PM&E measures from this Settlement included in the New Project License, only if and when significant new information not known or understood as of the date of issuance of the New Project License reasonably demonstrates that such proposed modification or other cause of reopener is in furtherance of the public interest under the FPA or other applicable law. In such an event, that Party shall provide Licensee at least 90-day Notice to consider the new information and that Party’s position. A Party shall not be required to comply with this 90-day Notice provision if it believes an emergency situation exists, or if required to meet its responsibilities under applicable law. Notwithstanding the provisions of this paragraph, any Party may seek to reopen the New Project License to implement future changes in applicable law, or to protect Beneficial Uses through coordinated operations of this Project, North Fork Feather River Project (No. 2105), and Poe Project (No. 2107), in connection with the relicensing proceedings for the latter two projects.

4.7.2 Amendment. Nothing in this Settlement is intended or shall be construed to affect or limit the right of Licensee to seek amendments of the New Project License, provided that Licensee may seek a Project license amendment which would adversely affect this Settlement only if Licensee, relying on significant new information not known or understood as of the date of issuance of the New Project License, can reasonably demonstrate in the amendment proceeding that the amendment is in furtherance of the public interest under the FPA or other applicable law. Prior to filing a proposed license amendment which relates to a Resolved Subject or would otherwise affect this Settlement, Licensee shall provide the Parties at least 90-day Notice of its intention to do so, and promptly following the giving of such Notice, shall consult with Parties responding within 30 days of such Notice regarding the need for and the purpose of the amendment, provided Licensee shall not be required to comply with this 90-day Notice provision if it believes an emergency situation exists or if required to meet its responsibilities under applicable law or an order of an agency with jurisdiction over Licensee. In such an emergency situation, Licensee shall give Notice to the ERC and FS within 5 days of the event. In any application for a Project license amendment that relates to a Resolved Subject or would otherwise affect this Settlement, Licensee shall provide with its application documentation of its consultation with the responsive Parties, summarize the positions and recommendation of the responsive Parties and provide its response to those positions and recommendations. Licensee shall not oppose an intervention request by any Party that satisfies FERC’s procedural requirements in a proceeding for a Project license amendment that any Party has concluded would adversely affect this Settlement. A Project license amendment that, as approved by FERC, would adversely affect this Settlement is subject to Paragraph 4.3.1. Further, a Project license amendment that, as approved by FERC, would adversely affect this Settlement may be considered by a Party as significant new information, allowing that Party to invoke the reopener provision in Paragraph 4.7.1.

4.8 Amendment of Settlement. This Settlement may be amended at any time through the term of the New Project License plus the term(s) of any annual license(s) which may be issued after the foregoing New Project License has expired, after Notice, with the unanimous agreement of all Parties still in existence and responsive within 30 days of such Notice. Any amendment of this Settlement shall be in writing and executed by the responding Parties.

4.9 Dispute Resolution

4.9.1 General. Except to the extent that FERC, FS, or other agency with jurisdiction over a Resolved Subject has a procedure that precludes implementation of Paragraph 4.9.1 - Paragraph 4.9.3, and to the extent specified for the ERC in Appendix B, all disputes among the Parties regarding any Party’s performance or compliance with this Settlement, including resolution of any disputes related to any New Project License article, Final 4(e) Condition, or mandatory license condition filed with FERC by an agency other than the FS, that is inconsistent with this Settlement, shall be the subject of a non-binding alternative dispute resolution (“ADR”) procedure among the disputing Parties, as stated in this Paragraph 4.9.1 - Paragraph 4.9.3. Each Party participating in a dispute (“disputing Party,” or collectively, “disputing Parties”) shall cooperate in Good Faith to promptly schedule, attend and participate in the ADR. The disputing Parties agree to devote such time, resources and attention to the ADR as is needed to attempt to resolve the dispute at the earliest time possible. Each disputing Party shall implement promptly all final agreements reached, consistent with its applicable statutory and regulatory responsibilities. Nothing in Paragraph 4.9.1 - Paragraph 4.9.3 is intended or shall be construed to affect or limit the authority of FERC, FS, or other agency with jurisdiction over a Resolved Subject, to resolve a dispute brought before it in accord with its own procedure and applicable law.

4.9.2 ADR Procedures. A Party claiming a dispute shall give Notice of the dispute within 30 days of the Party’s actual knowledge of the act, event, or omission that gives rise to the dispute, unless this Settlement provides otherwise. If the dispute includes a claim that any New Project License article, Section 4(e) Condition, or mandatory license condition filed with FERC by an agency other than FS, is inconsistent with this Settlement, and the claim arises prior to rehearing or appeal, the Notice shall be made within the time periods specified in Paragraphs 4.3.1, 4.3.2, or 4.3.3, respectively. If the dispute includes a claim that any New Project License article, Section 4(e) Condition, or mandatory license condition filed with FERC by an agency other than FS, is inconsistent with this Settlement, and the claim arises during or after rehearing or appeal, the Notice shall be made within the time periods specified in Paragraphs 4.4.1, 4.4.2, and 4.4.3, respectively. At a minimum and in any dispute subject to these ADR procedures, the disputing Parties shall hold two informal meetings within 30 days after Notice, to attempt to resolve the disputed issue(s). Any disputing Party may request that a FERC employee facilitate these informal meetings to assist in resolving the dispute. If the informal meetings fail to resolve the dispute, the disputing Parties shall attempt to resolve the dispute using a neutral mediator jointly selected within 15 days after Notice by a disputing Party that the informal meetings did not resolve the dispute. The disputing Parties shall select a mediator from the sources described in 18 CFR §385.604(c)(3). Absent an agreement for equitable allocation of costs of the mediator, the Parties shall select a FERC employee as mediator. The mediator shall mediate the dispute during the next 60 days after their selection. Any of these time periods may be reasonably extended or shortened by agreement of the disputing Parties, or as necessary to conform to the procedure of an agency or court with jurisdiction over the dispute. Unless otherwise agreed among the disputing Parties, each disputing Party shall bear its costs for its own participation in the ADR procedures.

4.9.3 Enforcement of Settlement After Dispute Resolution. Any Party may seek in a court of competent jurisdiction specific performance of this Settlement by any other Party, after compliance with the ADR procedures stated in Paragraph 4.9.1 -Paragraph 4.9.3. No Party shall be liable in damages for any breach of this Settlement, any performance or failure to perform a mandatory or discretionary obligation imposed by this Settlement, or any other cause of action arising from this Settlement. The time used to comply with the ADR procedures shall be excluded from computing any applicable statute of limitations, except where applicable law precludes such exclusion when computing time. Nothing in Paragraph 4.9.1 - Paragraph 4.9.3 is intended or shall be construed to affect or limit the jurisdiction of any agency or court as established under applicable law.

4.10 Withdrawal From Settlement.

4.10.1 Withdrawal of a Party from Settlement. A Party may withdraw from this Settlement only in the following circumstances: (a) a disputing Party claiming a material breach or violation of this Settlement may withdraw once the Party has complied with the ADR procedures stated in Paragraph 4.9.1 - Paragraph 4.9.3 to attempt to resolve the dispute; or (b) a Party objecting to a final and non-appealable order issuing a New Project License that is inconsistent with this Settlement may withdraw once the Party has complied with the ADR procedures stated in Paragraph 4.9.1 - Paragraph 4.9.3 to attempt to resolve the objection. In addition, Licensee may withdraw as provided in Paragraph 4.10.2. In addition, when required to fulfill statutory or regulatory responsibility, a Party that is an agency may suspend participation or, if necessary, withdraw from this Settlement, without first using the ADR procedures stated in Paragraph 4.9.1 - Paragraph 4.9.3. Finally, a Party may withdraw as provided in Paragraph 5.3.

4.10.2 Withdrawal of Licensee from Settlement. In addition to the provisions of Paragraph 4.10.1, Licensee may withdraw from this Settlement without first complying with the ADR procedures stated in Paragraph 4.9.1 - Paragraph 4.9.3 if a participant in the Collaborative does not execute, or in the case of the FWS, initial this Settlement by the Effective Date, or a Party withdraws from this Settlement, and Licensee reasonably determines at its sole discretion that the failure to execute or the withdrawal (a) may adversely affect the likelihood of FS issuing Final 4(e) Conditions consistent with this Settlement; (b) may adversely affect FERC’s issuance of a New Project License consistent with this Settlement; or (c) substantially diminishes the value of this Settlement to Licensee. Licensee shall exercise the right to withdraw from this Settlement as provided in this paragraph within 30 days of Licensee’s knowledge of the event creating the right to withdraw.

4.10.3 Method of Withdrawal. A Party may exercise its right to withdraw from this Settlement by giving Notice. Withdrawal is effective 10 calendar days after Notice. A Party that is an agency may suspend participation in this Settlement as provided in Paragraph 4.10.1 by giving Notice.

4.10.4 Continuity After Withdrawal. The withdrawal of a Party, other than Licensee, does not terminate this Settlement for the remaining Parties. If a Party withdraws from this Settlement, the withdrawing Party shall not be bound by any term contained in this Settlement. Additionally, except for Licensee, the withdrawing Party shall be deemed to have resigned from the ERC upon the effective date of the withdrawal and shall not be eligible for membership in the ERC for a period of 5 years. The withdrawing Party shall continue to be bound by the Collaborative protocols, to the extent permitted by applicable law.

4.11 Termination of Settlement. This Settlement shall terminate as to all Parties and have no further force or effect upon expiration of the New Project License and any annual licenses issued after expiration thereof or upon withdrawal from this Settlement of Licensee. If this Settlement is terminated, this Settlement and all documents related to its development, execution, and submittal to FERC shall be deemed confidential and shall not be discoverable or admissible in any forum or proceeding for any purpose to the fullest extent allowed by applicable law, including 18 C.F.R. § 385.606. This provision does not apply to the results of resource studies or other technical information developed for use by the Collaborative.

5. General Provisions

5.1 Non-Severable Terms of Settlement. The terms of this Settlement are not severable one from the other. This Settlement is made on the understanding that each term is in consideration and support of every other term, and each term is a necessary part of the entire Settlement.

5.2 No Third Party Beneficiaries. Without limiting the applicability of rights granted to the public pursuant to applicable law, this Settlement shall not create any right or interest in the public, or any member thereof, as a third party beneficiary hereof, and shall not authorize any non-Party to maintain a suit at law or equity pursuant to this Settlement. The duties, obligations and responsibilities of the Parties with respect to third parties shall remain as imposed under applicable law.

5.3 Successors and Assigns. This Settlement shall apply to, and be binding on, the Parties and their successors and assigns. Upon completion of a succession or assignment, the initial Party shall no longer be a Party to this Settlement. No change in ownership of the Project or transfer of the existing or New Project License by Licensee shall in any way modify or otherwise affect any other Party’s interests, rights, responsibilities or obligations under this Settlement. Unless prohibited by applicable law, Licensee shall provide in any transaction for a change in ownership of the Project or transfer of the existing or New Project License, that such new owner shall be bound by, and shall assume the rights and obligations of this Settlement upon completion of the change of ownership and approval by FERC of the license transfer. In the event applicable law prohibits the new owner from assuming the rights and obligations of this Settlement, any Party may withdraw from this Settlement. A transferring or assigning Party shall provide Notice to the other Parties at least 30 days prior to completing such transfer or assignment.

5.4 Failure to Perform Due to Force Majeure. No Party shall be liable to any other Party for breach of this Settlement as a result of a failure to perform or for delay in performance of any provision of this Settlement due to any cause reasonably beyond its control. This may include, but is not limited to, natural events, labor or civil disruption, or breakdown or failure of Project works. The Party whose performance is affected by a force majeure shall make notify the other Parties in writing within seven (7) days after becoming aware of any event that such affected Party contends constitutes a force majeure. Such notice will: identify the event causing the delay or anticipated delay; estimate the anticipated length of delay; state the measures taken or to be taken to minimize the delay; and estimate the timetable for implementation of the measures. The affected Party shall make all reasonable efforts to promptly resume performance of this Settlement, and, when able to resume performance of its obligations and give the other Parties written notice to that effect.

5.5 Governing Law. The New Project License and any other terms of this Settlement over which a federal agency has jurisdiction shall be governed, construed, and enforced in accordance with the statutory and regulatory authorities of such agency. This Settlement shall otherwise be governed and construed under the laws of the State of California. By executing this Settlement, no federal agency is consenting to the jurisdiction of a state court unless such jurisdiction otherwise exists. All activities undertaken pursuant to this Settlement shall be in compliance with all applicable law.

5.6 Elected Officials Not to Benefit. No member of or delegate to Congress shall be entitled to any share or part of this Settlement or to any benefit that may arise from it.

5.7 No Partnership. Except as otherwise expressly set forth herein, this Settlement does not and shall not be deemed to make any Party the agent for or partner of any other Party.

5.8 Reference to Regulations. Any reference in this Settlement to any federal or state regulation shall be deemed to be a reference to such regulation, or successor regulation, in existence as of the date of the action.

5.9 Notice. Except as otherwise provided in this paragraph, any Notice required by this Settlement shall be written. It shall be sent to all Parties still in existence by first-class mail or comparable method of distribution, and shall be filed with FS and FERC. For the Purpose of this Settlement, a Notice shall be effective 7 days after the date on which it is mailed or otherwise distributed. When this Settlement requires Notice in less than 7 days, Notice shall be provided by telephone, facsimile or electronic mail and shall be effective when provided. For the purpose of Notice, the list of authorized representatives of the Parties as of the Effective Date is attached as Appendix C. The Parties shall provide Notice of any change in the authorized representatives designated in Appendix C; and Licensee shall maintain the current distribution list of such representatives.

5.10 Paragraph Titles for Convenience Only. The titles for the paragraphs of this Settlement are used only for convenience of reference and organization, and shall not be used to modify, explain, or interpret any of the provisions of this Settlement or the intentions of the Parties.

6. Execution of Settlement

6.1 Signatory Authority. Each signatory to this Settlement certifies that he or she is authorized to execute this Settlement and to legally bind the Party he or she represents, and that such Party shall be fully bound by the terms hereof upon such signature without any further act, approval, or authorization by such Party.

6.1.1 Initialing by FWS. By initialing this Settlement, FWS signifies its agreement to this Settlement subject to review of the effects of this Settlement under Section 7 of ESA on species listed or proposed for listing under that law. Provided FWS issues a non-jeopardy biological opinion at the conclusion of the Section 7 consultation that is consistent with this Settlement, FWS agrees to become at that time signatory to this Settlement.

6.2 Disclosure of Other Agreements. Except for the 1991 Fish and Wildlife Agreement, each Party represents that it is not a party to any other existing agreement with any Party or non-Party relating to this Settlement. If a Party subsequently determines that it has such an agreement, such Party shall provide Notice of the terms of that agreement.

6.3 Signing in Counterparts. This Settlement may be executed in any number of counterparts, and each executed counterpart shall have the same force and effect as an original instrument as if all the signatory Parties to all of the counterparts had signed the same instrument. Any signature page of this Settlement may be detached from any counterpart of this Settlement without impairing the legal effect of any signatures thereon, and may be attached to another counterpart of this Settlement identical in form hereto but having attached to it one or more signature pages.

WHEREFORE, for valuable consideration, which is hereby acknowledged, and by authorized representatives, the Parties execute this Settlement effective as of September 18, 2000.

Pacific Gas and Electric Company

_________________________________________

by _______________________________________

(Print) (Title)

United States Department of Agriculture Forest Service

__________________________________________

by ________________________________________

(Print) (Title)

United States Department of the Interior Fish and Wildlife Service

_____ (intitial)

by ________________________________________

(Print) (Title)

__________________________________________ (signature)

by ________________________________________

(Print) (Title)

California Department of Fish and Game

____________________________________________

by __________________________________________

(Print) (Title)

California State Water Resources Control Board

_____________________________________________

by ___________________________________________

(Print) (Title)

Natural Heritage Institute

_____________________________________________

by ___________________________________________

(Print) (Title)

Friends of the River

______________________________________________

by ____________________________________________

(Print) (Title)

Plumas County

_______________________________________________

by _____________________________________________

(Print) (Title)

California Outdoors

________________________________________________

by ______________________________________________

(Print) (Title)

California Trout

_________________________________________________

by _______________________________________________

(Print) (Title)

Chico Paddleheads

___________________________________________________

by _________________________________________________

(Print) (Title)

American Whitewater

_______________________________________________

by _____________________________________________

(Print) (Title)

Shasta Paddlers

______________________________________________

by ___________________________________________

(Print) (Title)

Relicensing Settlement Agreement

Appendix A

Protection, Mitigation and Enhancement Measures Recommended to be Included in the New Project License and FS Final 4(e) Conditions and Used in Other Regulatory Approvals

Section I. Water Temperature

1. Water Temperature Requirement. In order to reasonably protect cold freshwater habitat, Licensee shall maintain mean daily water temperatures of 20 degrees Celsius or less in the Rock Creek and Cresta Reaches, to the extent that Licensee can reasonably control such temperatures. Reasonable Control Measures are: the flow schedules stated in Section II, Table A below and implementation of the measures stated in this Section I. Further measures to maintain mean daily water temperatures of 20 degrees Celsius or less in the Rock Creek and Cresta Reaches may be required by subsequent amendment of the New Project License under FERC’s reservation of authority as provided in Paragraph 6 below.

2. Prattville Intake Control Measure. Licensee shall, within three months after issuance of a New Project License, initiate a modeling study to evaluate the anticipated effectiveness of the Prattville Intake Modification control measures. The study shall be completed as soon as practicable but no later than one year after issuance of New Project License. The ERC and FS will evaluate the effectiveness of such control measures after review of the study results.

Subject to the provisions of Paragraph 5 below which sets forth the Licensee’s total financial commitment for Reasonable Control Measures as set forth in Paragraphs 2 and 4 of this section, the ERC and FS shall affirmatively determine which Prattville Intake Modification control measures, if any, shall be implemented. This determination shall be based on a finding that the modification control measures will effectively contribute to the maintenance of mean daily water temperatures of 20 degrees Celsius or less in the Rock Creek and Cresta Reaches. This determination shall also be based on the best scientific information available, the use of sound scientific methods, consideration of the relative cost of different Prattville Intake Modification control measures, and the relative temperature control benefits of such measures and alternatives thereto.

Licensee shall construct any Prattville Intake Modifications and commence operation for selective withdrawal of coldwater from Lake Almanor no later than one winter and one following summer season after issuance of the New Project License and the affirmative determination of the ERC and FS above, unless that schedule is impractical due to any further regulatory approval required for such control measures. In the event that further regulatory approval is required, Licensee shall promptly apply for such approval, and shall implement the control measures no later than one winter and one following summer season after obtaining the requisite approval.

3. Water Temperature Monitoring. Licensee shall implement a water temperature monitoring program. The program shall continue for no less than five years after installation of the Prattville Intake Modification, or five years after a determination pursuant to Paragraph 2 of this section that the Prattville Intake Modification will be ineffective and therefore should not be constructed. During the term of the New Project License, the monitoring and reporting requirements set forth herein may be reduced or terminated after it is demonstrated to the satisfaction of the ERC and the FS that mean daily temperatures of 20 degrees Celsius or less have been and will be achieved, or that a given requirement is not necessary to determine whether this temperature objective will be met.

The temperature monitoring program shall consist of continuous temperature and flow monitoring in the Rock Creek, Cresta, Belden and Seneca reaches, along with temperature monitoring in their major tributaries, from June 1 through September 30, at the sites designated below for 15 years following issuance of the New Project License. Continuous temperature monitoring shall be conducted at gages NF 57 below Rock Creek and NF 56 below Cresta, from June 1 through October 31, for the term of the New Project License. Flow monitoring shall be conducted at existing flow gages.

Temperature monitoring data will be used to develop and verify a model that predicts, with reasonable accuracy, the temperature profile of the river based on data from NF 56 and NF 57. Once the temperature model has been determined by the ERC and FS to be reasonably accurate for determining downstream temperature, the ERC and FS may reduce the number of non-telemetered sites or the frequency of reporting data.

Monitoring sites in Rock Creek and Cresta Reaches shall be located as follows:

Rock Creek Reach:

NFFR below Rock Creek Dam

NFFR at the NF57 gage (data telemetered to Rock Creek PH)

NFFR above Bucks Creek

Chips Creek

Milk Ranch Creek

Chambers Creek

Jackass Creek

Bucks Creek

Bucks PH Tailrace

NFFR above Rock Creek PH

Rock Creek PH Tailrace

Cresta Reach:

NFFR below Cresta Dam

NFFR at the NF56 gage (data telemetered to Rock Creek PH)

NFFR above Cresta PH

Rock Creek

Grizzly Creek.

If monitoring results from gages NF 57 and NF 56 demonstrate that mean daily water temperatures regularly exceed 20 degrees Celsius in the Rock Creek or Cresta reaches in October, the Licensee shall monitor at the following sites in October: NFFR below Rock Creek Dam; NFFR above Bucks Creek; NFFR above Rock Creek PH; NFFR below Cresta Dam; and NFFR above Cresta PH. The temperature monitoring program also shall include continuous water temperature monitoring at a reasonably accessible site on the Middle Fork Feather River, for the period June 1 through September 30. In addition, Licensee shall monitor water temperature profiles in Lake Almanor and Butt Valley Reservoir, and collect other data (e.g., water velocity measurements) as needed to evaluate the efficacy of temperature control measures, for the period June 1 through September 30. Finally, Licensee shall maintain two meteorology monitoring stations, one at the Project and another at Project No. 2105, at which data shall be collected for the period May 1 through October 31. License shall provide the meteorological data to any member of the ERC or FS upon request.

Licensee shall provide monitoring results for 9 years of the first 15 years after issuance of a New Project License to the ERC and the FS on a weekly basis in dry or critically dry water years, or bi-weekly in normal and wet water years, for the following monitoring sites: NFFR below Rock Creek Dam; NFFR at the NF 57 gage; NFFR above Bucks Creek; NFFR above Rock Creek PH; NFFR below Cresta Dam; NFFR at the NF 56 gage; and NFFR above Cresta PH. The ERC and FS shall determine which 9 years these monitoring results shall be collected and provided to them. This determination shall be made by the ERC and FS by May 1 of each year. Reporting of these monitoring results to the ERC and FS shall be undertaken in a reasonable manner and form to be specified in the temperature monitoring plan required below. In addition to the foregoing, reporting of continuous temperature monitoring results from NF 56 and NF 57 gages shall be made available to any member of the ERC or FS upon request for the term of New Project License.

If water temperatures monitored at NF 56 or NF 57 exceed a mean daily average of 20 degrees Celsius for two consecutive days, Licensee shall provide notice to the ERC and FS. The Licensee shall inform the ERC and FS of any actions being taken by the Licensee to maintain water temperatures at a mean daily average of 20 degrees Celsius or less. Analysis of the effectiveness of these actions shall be included in the annual Monitoring Report.

The Licensee shall submit to FERC an annual Monitoring Report that includes all monitoring results for the prior year and analyzes the effectiveness of the control measures in achieving mean daily temperatures of 20 degrees Celsius or less in the Rock Creek and Cresta Reaches. The report shall be submitted no later than May 31 of each year. The Monitoring Report shall be prepared in consultation with the ERC and FS and shall be provided to them on submittal.

Licensee shall prepare a water temperature monitoring plan which provides for implementation (including a schedule for implementation) of the temperature monitoring program described above. The plan shall be prepared in consultation with the ERC and FS. As soon as practicable but not later than one year after issuance of the New Project License, Licensee shall file the plan with the SWRCB for approval. Licensee shall thereafter submit the plan to FERC for approval. If FERC modifies the plan as submitted, the Licensee shall comply with the plan as approved by FERC.

4. Additional Reasonable Control Measures. Within five years of the date when the Commission approves the water temperature monitoring plan, the Licensee shall prepare a report that evaluates whether mean daily temperatures of 20 degrees Celsius or less have been and will be achieved in the Rock Creek and Cresta Reaches, and if not, whether additional reasonable control measures are available. The report shall include recommendations for the implementation of any such measures.

The report shall include all modeling and monitoring results required by Paragraph 2 and 3 above. It shall also factor in economic considerations in evaluating whether additional temperature control measures are reasonable.

Subject to the provisions of Paragraph 5 below which sets forth the Licensee’s total financial commitment for Reasonable Control Measures as set forth in Paragraphs 2 and 4 of this section, the ERC and FS shall make an affirmative determination whether additional temperature control measures shall be implemented. This affirmative determination shall be based on the best scientific information available, the use of sound scientific methods, consideration of the relative cost of different control measures, and other relevant factors. As soon as practicable after such affirmative determination, Licensee shall implement any additional reasonable control measures for which no further regulatory approval is necessary. Licensee shall promptly apply for regulatory approval for any other additional reasonable control measures that the ERC and FS affirmatively determine shall be implemented.

5. Coldwater Habitat and Fishery Mitigation and Enhancement Fund (Fund). On issuance of the New Project License, Licensee shall establish a tracking account and fund a total of $5,000,000 (current dollars) for expenditure on water temperature control measures. Seventy-five months after such issuance of the New Project License, Licensee shall add to the Fund an additional amount not to exceed $2,000,000 (January 2001 dollars, escalated per Paragraph 4.5.5 of this Settlement), provided the ERC and FS make an affirmative determination, based on the first 5 years of monitoring results, that further measures are necessary to maintain mean daily water temperatures of 20 degrees Celsius in the Rock Creek and Cresta Reaches, and that the additional funding is appropriate for this purpose. The balance in the Fund shall accrue interest at the 90-day commercial paper rate as published by the Federal Reserve Bank of New York, credited on a quarterly basis.

The primary purpose of the Fund shall be the temperature control measures described in Paragraphs 2 and 4 of this section, exclusive of the development and implementation of the temperature monitoring plan pursuant to Paragraph 3 of this section. The Fund may be used to undertake other measures that directly enhance coldwater habitat and fishery in the Rock Creek and Cresta Reaches, if the ERC and FS determine that further expenditure on temperature control measures will not be effective in maintaining a mean daily water temperatures of 20 degrees Celsius or less in these reaches. The Fund shall not be used, however, to compensate the Licensee for foregone power generation due to flow schedules stated in Section II, Table A below. The Fund may be used to purchase additional flow only if the ERC has determined that no other reasonable temperature control measures are available.

Decisions on expenditures to be charged to the Fund shall be made by the ERC and FS. Such decisions shall be based on the best scientific information available and the use of sound scientific methods. No expenditure shall be made and charged to the Fund in absence of any necessary regulatory or other legal approval, or for actions that would be in conflict with any regulatory, legal, or contractual requirement.

All temperature control measures identified pursuant to Paragraphs 2 and 4 of this section shall be funded from the Fund. If the Prattville Intake Modification is determined to be the Submerged Curtain/Skimmer Wall pursuant to Paragraph 2 of this section, Licensee shall debit the Fund $3,000,000 for the cost of its design and construction. Licensee shall retain any difference between $3,000,000 and the actual design and construction cost of the Submerged Curtain/Skimmer Wall. Any design and construction costs in excess of $3,000,000 and future operation and maintenance costs will not be debited from the Fund.

Any unallocated Fund balance after the New Project License expiration plus the term(s) of any annual license(s), which may be issued after license expiration or license surrender shall revert back to Licensee. Licensee shall distribute an accounting statement to FERC, ERC and the FS within 30 days after January 1 of each year after the Fund is established, summarizing the Fund balance, accrued interest, and previous charged amounts. Licensee shall administer all work and payments under the Fund in a manner consistent with its normal business practices. Licensee’s cost of administering the Fund account shall not be charged to the Fund.

Funding under this paragraph may be used in conjunction with funds that may be available from other sources, including but not limited to Licensee’s other relicensing proceedings on the NFFR.

6. Reservation of FERC Authority. FERC reserves authority to reopen for cause the New Project License to protect Beneficial Uses of the NFFR through coordinated operations of this Project, North Fork Feather Project (No. 2105) and Poe Project (No. 2107). Such reopener may occur in conjunction with the relicensing proceedings for Nos. 2105 and 2107.

Section II. River Flow Management

1. Minimum River Flows. For the preservation and improvement of fisheries resources in the Project area, Licensee shall maintain specified Minimum River Flows and Pulse Flows below Project dams as measured at gages NF-56 and NF-57 in accordance with Table A below. Table A provides for adjustments in flow releases over the term of the license. Minimum River Flows at the levels specified in the first 5-year period shall be initiated within 60 days of issuance of a New Project License. The first official test year shall begin on the January 1 of the year following issuance of a New Project License. Test years shall be on a calendar year basis and the first 5-year test period shall last until December 31 of the fifth full year after issuance of a New Project License. On January 1 of the sixth full year after issuance of a New Project License the Minimum River Flows shall increase automatically to the levels of the second 5-year period. Minimum River Flows shall be maintained at the second 5-year level for a five year test period provided at least four consecutive non-critically dry years occur. If the test period is interrupted by one or more critically dry years the test period shall be extended as determined by the ERC and FS. Adjustments to required Minimum River Flows after the completion of the second 5-year test period shall be made as specified by the ERC and FS. Such adjustments shall not exceed the Cap Flows applicable for the third 5-year test period. The length of the third 5-year test period shall be subject to the same conditions as the second 5-year test period (may be extended by the ERC and FS in the event critically dry years occur). Adjustments after the third 5-year test period shall be as specified by the ERC and FS, and such adjustments shall not exceed the Cap Flows applicable for the third 5-year test period. FERC shall be advised of the status of the test periods in the ERC’s annual report.

Table A.1

Rock Creek Reach Minimum River Flow, Pulse, and Ramping
First 5-Year Flow Period - Normal & Wet Years
Season	Month	Base Flow (cfs) (5)	Pulse (cfs) (6)	Ramping Rate (cfsD/hr)	Block Loading	Boating Flow (cfs)	Launch Window
Spring	Mar	250	2 @ >1600	rise & fall from EBF (1)	Belden (3)	-	-
	Apr	250	2 @ >1600	rise & fall from EBF (1)	Belden (3)	-	-
	May	250	2 @ >1600	rise & fall from EBF (1)	Belden (3)	-	-
Summer & Fall	Jun	220	1 @ >1000 (2)	300/400 cfs rise/150 cfs fall (4)	Belden (3)	1600	10 - 4 pm
	Jul	180	0	400 cfs rise/150 cfs fall	no	1200	10 - 4 pm
	Aug	180	0	400 cfs rise/150 cfs fall	no	1000	10 - 4 pm
	Sep	180	0	400 cfs rise/150 cfs fall	no	1000	10 - 4 pm
	Oct	180	0	400 cfs rise/150 cfs fall	no	1000	10 - 4 pm
	Nov	180	0	400 cfs rise/150 cfs fall	no	-	-
Winter	Dec	200	0	400 cfs rise/150 cfs fall	no	-	-
	Jan	225	0	400 cfs rise/150 cfs fall	no	-	-
	Feb	225	0	400 cfs rise/150 cfs fall	no	-	-

Notes:

(1) Rise and fall to follow E. Branch Feather rate, to be achieved by holding Belden and Rock Creek PHs constant during pulse (unless RCPH decreased to maintain flow > target pulse). Pulse event can be terminated when EBF flow is constant (+-100 cfs/hr), at which time normal operations resume, and spill may be reduced at 150 cfs/hr. Same rise and fall ramping limitations apply to non-pulse spill events past diversion dam between March and first 2 weeks of June.

(2) In first 2 weeks of June, a pulse of 1000 cfs (from EBF or supplemented) of at least 12 continuous hours in duration should occur, assuming flows at NF57 are not already >3000 cfs.

(3) If flows at NF57 are between 275 and 3000 cfs, Belden will be block loaded to avoid having spills start and stop at Rock Creek Reservoir.

(4) 300 cfs/hr rise during first 2 weeks of June, 400 cfs/hr rise for second 2 weeks of June if spill is from operations.

(5) Minimum monthly flow to be measured at Licensee gage NF57.

(6) Pulses are 12 hrs continuous duration, and no riparian flows occur.

Table A.1 (continued)

Rock Creek Reach Minimum River Flow, Pulse, and Ramping
First 5-Year Flow Period - Dry Years
Season	Month	Base Flow (cfs) (5)	Pulse (cfs) (6)	Ramping Rate (cfsD/hr)	Block Loading	Boating Flow (cfs)	Launch Window
Spring	Mar	200	2 @ >1000	rise & fall from EBF (1)	Belden (3)	-	-
	Apr	200	2 @ >1000	rise & fall from EBF (1)	Belden (3)	-	-
	May	200	0	rise & fall from EBF (1)	Belden (3)	-	-
Summer & Fall	Jun	175	0	300/400 cfs rise/150 cfs fall (4)	no	1000	10 - 1 pm
	Jul	150	0	400 cfs rise/150 cfs fall	no	800	10 - 1 pm
	Aug	150	0	400 cfs rise/150 cfs fall	no	800	10 - 1 pm
	Sep	150	0	400 cfs rise/150 cfs fall	no	800	10 - 1 pm
	Oct	150	0	400 cfs rise/150 cfs fall	no	-	-
	Nov	150	0	400 cfs rise/150 cfs fall	no	-	-
Winter	Dec	160	0	400 cfs rise/150 cfs fall	no	-	-
	Jan	180	0	400 cfs rise/150 cfs fall	no	-	-
	Feb	180	0	400 cfs rise/150 cfs fall	no	-	-

Notes:

(3) If flows at NF57 are between 275 and 3000 cfs, Belden will be block loaded to avoid having spills start and stop at Rock Creek Reservoir.

(4) 300 cfs/hr rise during first 2 weeks of June, 400 cfs/hr rise for second 2 weeks of June if spill is from operations.

(5) Minimum monthly flow to be measured at Licensee gage NF57.

(6) Pulses are 12 hrs continuous duration, and no riparian flows occur.

Table A.1 (continued)

Rock Creek Reach Minimum River Flow, Pulse, and Ramping
First 5-Year Flow Period - Critically Dry Years
Season	Month	Base Flow (cfs) (5)	Pulse (cfs) (6)	Ramping Rate (cfsD/hr)	Block Loading	Boating Flow (cfs)	Launch Window
Spring	Mar	110	1 @ >1000	rise & fall from EBF (1)	Belden (3)	-	-
	Apr	110	1 @ >1000	rise & fall from EBF (1)	Belden (3)	-	-
	May	150	0	rise & fall from EBF (1)	Belden (3)	-	-
Summer & Fall	Jun	150 (7)	0	300/400 cfs rise/150 cfs fall (4)	no	1000	10 - 1 pm
	Jul	150 (7)	0	400 cfs rise/150 cfs fall	no	800	10 - 1 pm
	Aug	150 (7)	0	400 cfs rise/150 cfs fall	no	800	10 - 1 pm
	Sep	150 (7)	0	400 cfs rise/150 cfs fall	no	800	10 - 1 pm
	Oct	150 (7)	0	400 cfs rise/150 cfs fall	no	-	-
	Nov	110	0	400 cfs rise/150 cfs fall	no	-	-
Winter	Dec	110	0	400 cfs rise/150 cfs fall	no	-	-
	Jan	110	0	400 cfs rise/150 cfs fall	no	-	-
	Feb	110	0	400 cfs rise/150 cfs fall	no	-	-

Notes:

(3) if flows at NF57 are between 275 and 3000 cfs, Belden will be block loaded to avoid having spills start and stop at Rock Creek Reservoir.

(4) 300 cfs/hr rise during first 2 weeks of June, 400 cfs/hr rise for second 2 weeks of June if spill is from operations.

(5) Minimum monthly flow to be measured at Licensee gage NF57.

(6) Pulses are 12 hrs continuous duration, and no riparian flows occur.

(7) The base flow of 150 cfs shall be increased to 200 cfs, or to any flow between 150 and 200 cfs, to the extent necessary to contribute to the maintenance of mean daily temperatures of 20 degrees Celsius or less in the Rock Creek Reach. Similarly, this increased flow shall be reduced back to the 150 cfs base flow when not required to maintain mean daily temperatures of 20 degrees Celsius in the Rock Creek Reach. For the first three years after issuance of a New Project license, or until a temperature model as referred to in Section I, Paragraph 3 is developed, Licensee shall use the mean daily water temperature measured at NF 57 to determine whether and how to implement this flow provision. This flow provision shall not apply, and the base flow shall remain at 150 cfs, if the ERC and FS determine, based on a review of temperature monitoring results or by assessment from a reasonably accurate water temperature model, that the increase in base flows will not result in a reduction in water temperature New Project beneficial to cold freshwater habitat, or the cost of the increase in base flow is dramatically disproportional to the benefit. To implement this flow provision, Licensee shall, in consultation with the ERC and FS, submit to FERC for approval, as soon as practicable but no later than one year after issuance of a license, a Critically Dry Year Flow Operations and Compliance Plan. The plan shall establish reasonable procedures and criteria to support maintenance of mean daily water temperatures of 20 degrees Celsius. These procedures and criteria shall be similar for both increasing flows up to 200 cfs (or any flow between 150 and 200 cfs) and decreasing flows back to 150 cfs.

Table A.1 (continued)

Cresta Reach Minimum River Flow, Pulse, and Ramping
First 5-Year Flow Period - Normal & Wet Years
Season	Month	Base Flow (cfs) (5)	Pulse (cfs) (6)	Ramping Rate (cfsD/hr)	Block Loading	Boating Flow (cfs)	Launch Window
Spring	Mar	250	2 @ >1600	rise & fall from EBF (1)	Belden (3)	-	-
	Apr	250	2 @ >1600	rise & fall from EBF (1)	Belden (3)	-	-
	May	250	2 @ >1600	rise & fall from EBF (1)	Belden (3)	-	-
Summer & Fall	Jun	240	1 @ >1000 (2)	300/400 cfs rise/150 cfs fall (4)	Belden (3)	1600	10 - 4 pm
	Jul	220	0	400 cfs rise/150 cfs fall	no	1200	10 - 4 pm
	Aug	220	0	400 cfs rise/150 cfs fall	no	1000	10 - 4 pm
	Sep	220	0	400 cfs rise/150 cfs fall	no	1000	10 - 4 pm
	Oct	220	0	400 cfs rise/150 cfs fall	no	1000	10 - 4 pm
	Nov	220	0	400 cfs rise/150 cfs fall	no	-	-
Winter	Dec	240	0	400 cfs rise/150 cfs fall	no	-	-
	Jan	240	0	400 cfs rise/150 cfs fall	no	-	-
	Feb	240	0	400 cfs rise/150 cfs fall	no	-	-

Note:

(1) Rise and fall to follow E. Branch Feather rate, to be achieved by holding Belden, Rock Creek, & Cresta PHs constant during pulse (unless Cresta PH decreased to maintain flow > target pulse). Pulse event can be terminated when EBF flow is constant (+-100 cfs/hr), at which time normal operations resume, and spill may be reduced at 150 cfs/hr. Same rise and fall ramping limitations apply to non-pulse spill events past diversion dam between March and first 2 weeks of June.

(2) In first 2 weeks of June, a pulse of 1000 cfs (from EBF or supplemented) of at least 12 continuous hours in duration should occur, assuming flows at NF56 are not already > 3000 cfs.

(3) If flows at NF56 are between 275 and 3000 cfs, Belden & Rock Creek will be block loaded to avoid having spills start and stop at Cresta Reservoir.

(4) 300 cfs/hr rise during first 2 weeks of June, 400 cfs/hr rise for second 2 weeks of June if spill is from operations.

(5) Minimum monthly flow to be measured at Licensee gage NF56, and at least 100 cfs will be released from Cresta Diversion Dam at all times.

(6) Pulses are 12 hrs continuous duration, and no riparian flows occur.

Table A.1. (continued)

Cresta Reach Minimum River Flow, Pulse, and Ramping
First 5-Year Flow Period - Dry Years
Season	Month	Base Flow (cfs) (5)	Pulse (cfs) (6)	Ramping Rate (cfsD/hr)	Block Loading	Boating Flow (cfs)	Launch Window
Spring	Mar	200	2 @ >1000	rise & fall from EBF (1)	Belden (3)	-	-
	Apr	200	2 @ >1000	rise & fall from EBF (1)	Belden (3)	-	-
	May	200	0	rise & fall from EBF (1)	Belden (3)	-	-
Summer & Fall	Jun	190	0	300/400 cfs rise/150 cfs fall (4)	no	1000	10 - 1 pm
	Jul	175	0	400 cfs rise/150 cfs fall	no	800	10 - 1 pm
	Aug	175	0	400 cfs rise/150 cfs fall	no	800	10 - 1 pm
	Sep	175	0	400 cfs rise/150 cfs fall	no	800	10 - 1 pm
	Oct	175	0	400 cfs rise/150 cfs fall	no	-	-
	Nov	175	0	400 cfs rise/150 cfs fall	no	-	-
Winter	Dec	190	0	400 cfs rise/150 cfs fall	no	-	-
	Jan	190	0	400 cfs rise/150 cfs fall	no	-	-
	Feb	190	0	400 cfs rise/150 cfs fall	no	-	-

Notes:

(3) If flows at NF56 are between 225 and 3000 cfs, Belden & Cresta will be block loaded to avoid having spills start and stop at Cresta Reservoir.

(4) 300 cfs/hr rise during first 2 weeks of June, 400 cfs/hr rise for second 2 weeks of June if spill is from operations.

(5) Minimum monthly flow to be measured at Licensee gage NF56, and at least 100 cfs will be released from Cresta Diversion Dam at all times.

(6) Pulses are 12 hrs continuous duration, and no riparian flows occur.

Table A.1 (continued)

Cresta Reach Minimum River Flow, Pulse, and Ramping
First 5-Year Flow Period - Critically Dry Years
Season	Month	Base Flow (cfs) (5)	Pulse (cfs) (6)	Ramping Rate (cfsD/hr)	Block Loading	Boating Flow (cfs)	Launch Window
Spring	Mar	100	1 @ >1000	rise & fall from EBF (1)	Belden (3)	-	-
	Apr	100	1 @ >1000	rise & fall from EBF (1)	Belden (3)	-	-
	May	140	0	rise & fall from EBF (1)	Belden (3)	-	-
Summer &Fall	Jun	140 (7)	0	300/400 cfs rise/150 cfs fall (4)	no	1000	10 - 1 pm
	Jul	140 (7)	0	400 cfs rise/150 cfs fall	no	800	10 - 1 pm
	Aug	140 (7)	0	400 cfs rise/150 cfs fall	no	800	10 - 1 pm
	Sep	140 (7)	0	400 cfs rise/150 cfs fall	no	800	10 - 1 pm
	Oct	140 (7)	0	400 cfs rise/150 cfs fall	no	-	-
	Nov	100	0	400 cfs rise/150 cfs fall	no	-	-
Winter	Dec	100	0	400 cfs rise/150 cfs fall	no	-	-
	Jan	100	0	400 cfs rise/150 cfs fall	no	-	-
	Feb	100	0	400 cfs rise/150 cfs fall	no	-	-

Notes:

(3) If flows at NF56 are between 225 and 3000 cfs, Belden & Cresta will be block loaded to avoid having spills start and stop at Cresta Reservoir.

(4) 300 cfs/hr rise during first 2 weeks of June, 400 cfs/hr rise for second 2 weeks of June if spill is from operations.

(5) Minimum monthly flow to be measured at Licensee gage NF56, and at least 100 cfs will be released from Cresta Diversion Dam at all times.

(6) Pulses are 12 hrs continuous duration, and no riparian flows occur.

(7) The base flow of 140 cfs shall be increased to 200 cfs, or to any flow in between 140 and 200 cfs, to the extent necessary to contribute to the maintenance of mean daily temperatures of 20 degrees Celsius or less in the Cresta Reach. Similarly, this increased flow shall be reduced back to the 140 cfs base flow when not required to maintain mean daily temperatures of 20 degrees Celsius in the Cresta Reach. For the first three years after issuance of a New Project license, or until a temperature model as referred to in Section I, paragraph 3 is developed, Licensee shall use the mean daily water temperature measured at NF 56 to determine whether and how to implement this provision. This flow provision shall not apply, and the base flow shall remain at 140 cfs, if the ERC and FS determine, based on a review of temperature monitoring results or by assessment from a reasonably accurate water temperature model, that the increase in base flows will not result in a reduction in water temperature beneficial to cold freshwater habitat, or the cost of the increase in base flow is dramatically disproportional to the benefit. To implement this flow provision, Licensee shall, in consultation with the ERC and FS, submit to FERC for approval, as soon as practicable but no later than one year after issuance of a New Project license, a Critically Dry Year Flow Operations and Compliance Plan. The plan shall establish reasonable procedures and criteria to maintain mean daily water temperatures of 20 degrees Celsius. These procedures and criteria shall be similar for both increasing flows up to 200 cfs (or any flow between 140 and 200 cfs) and decreasing flows back to 140 cfs.

Table A.2

Rock Creek Reach Minimum River Flow, Pulse, and Ramping
Second 5-Year Flow Period - Normal & Wet Years (8)
Season	Month	Base Flow (cfs) (5)	Pulse (cfs) (6)	Ramping Rate (cfsD/hr)	Block Loading	Boating Flow (cfs)	Launch Window
Spring	Mar	350	2 @ >1600	rise & fall from EBF (1)	Belden (3)	-	-
	Apr	350	2 @ >1600	rise & fall from EBF (1)	Belden (3)	-	-
	May	350	2 @ >1600	rise & fall from EBF (1)	Belden (3)	-	-
Summer & Fall	Jun	260	1 @ >1000 (2)	300/400 cfs rise/150 cfs fall (4)	Belden (3)	1600	10 - 4 pm
	Jul	260	0	400 cfs rise/150 cfs fall	no	1200	10 - 4 pm
	Aug	260	0	400 cfs rise/150 cfs fall	no	1000	10 - 4 pm
	Sep	260	0	400 cfs rise/150 cfs fall	no	1000	10 - 4 pm
	Oct	260	0	400 cfs rise/150 cfs fall	no	1000	10 - 4 pm
	Nov	260	0	400 cfs rise/150 cfs fall	no	-	-
Winter	Dec	350	0	400 cfs rise/150 cfs fall	no	-	-
	Jan	350	0	400 cfs rise/150 cfs fall	no	-	-
	Feb	350	0	400 cfs rise/150 cfs fall	no	-	-

Notes:,

(2) In first 2 weeks of June, a pulse of 1000 cfs (from EBF or supplemented) of at least 12 continuous hours in duration should occur, assuming flows at NF57 are not already> 3000 cfs.

(3) If flows at NF57 are between 275 and 3000 cfs, Belden will be block loaded to avoid having spills start and stop at Rock Creek Reservoir.

(4) 300 cfs/hr rise during first 2 weeks of June, 400 cfs/hr rise for second 2 weeks of June if spill is from operations.

(5) Minimum monthly flow to be measured at Licensee gage NF57.

(6) Pulses are 12 hrs continuous duration, and no riparian flows occur.

(8) Implementation of flow in this table is automatic after first 5 years.

Table A.2 (continued)

Rock Creek Reach Minimum River Flow, Pulse, and Ramping
Second 5-Year Flow Period - Dry Years (8)
Season	Month	Base Flow (cfs) (5)	Pulse (cfs) (6)	Ramping Rate (cfsD/hr)	Block Loading	Boating Flow (cfs)	Launch Window
Spring	Mar	280	2 @ >1000	rise & fall from EBF (1)	Belden (3)	-	-
	Apr	280	2 @ >1000	rise & fall from EBF (1)	Belden (3)	-	-
	May	280	0	rise & fall from EBF (1)	Belden (3)	-	-
Summer & Fall	Jun	210	0	300/400 cfs rise/150 cfs fall (4)	no	1000	10 - 1 pm
	Jul	210	0	400 cfs rise/150 cfs fall	no	800	10 - 1 pm
	Aug	210	0	400 cfs rise/150 cfs fall	no	800	10 - 1 pm
	Sep	210	0	400 cfs rise/150 cfs fall	no	800	10 - 1 pm
	Oct	210	0	400 cfs rise/150 cfs fall	no	-	-
	Nov	210	0	400 cfs rise/150 cfs fall	no	-	-
Winter	Dec	280	0	400 cfs rise/150 cfs fall	no	-	-
	Jan	280	0	400 cfs rise/150 cfs fall	no	-	-
	Feb	280	0	400 cfs rise/150 cfs fall	no	-	-

Notes:

(3) If flows at NF57 are between 275 and 3000 cfs, Belden will be block loaded to avoid having spills start and stop at Rock Creek Reservoir.

(4) 300 cfs/hr rise during first 2 weeks of June, 400 cfs/hr rise for second 2 weeks of June if spill is from operations.

(5) Minimum monthly flow to be measured at Licensee gage NF57.

(6) Pulses are 12 hrs continuous duration, and no riparian flows occur.

(8) Implementation of flow in this table is automatic after first 5 years.

Table A.2 (Continued)

Rock Creek Reach Minimum River Flow, Pulse, and Ramping
Second 5-Year Flow Period - Critically Dry Years
Season	Month	Base Flow (cfs) (5)	Pulse (cfs) (6)	Ramping Rate (cfsD/hr)	Block Loading	Boating Flow (cfs)	Launch Window
Spring	Mar	110	1 @ >1000	rise & fall from EBF (1)	Belden (3)	-	-
	Apr	110	1 @ >1000	rise & fall from EBF (1)	Belden (3)	-	-
	May	150	0	rise & fall from EBF (1)	Belden (3)	-	-
Summer & Fall	Jun	150 (7)	0	300/400 cfs rise/150 cfs fall (4)	no	1000	10 - 1 pm
	Jul	150 (7)	0	400 cfs rise/150 cfs fall	no	800	10 - 1 pm
	Aug	150 (7)	0	400 cfs rise/150 cfs fall	no	800	10 - 1 pm
	Sep	150 (7)	0	400 cfs rise/150 cfs fall	no	800	10 - 1 pm
	Oct	150 (7)	0	400 cfs rise/150 cfs fall	no	-	-
	Nov	110	0	400 cfs rise/150 cfs fall	no	-	-
Winter	Dec	110	0	400 cfs rise/150 cfs fall	no	-	-
	Jan	110	0	400 cfs rise/150 cfs fall	no	-	-
	Feb	110	0	400 cfs rise/150 cfs fall	no	-	-

Notes:

(3) If flows at NF57 are between 275 and 3000 cfs, Belden will be block loaded to avoid having spills start and stop at Rock Creek Reservoir.

(4) 300 cfs/hr rise during first 2 weeks of June, 400 cfs/hr rise for second 2 weeks of June if spill is from operations.

(5) Minimum monthly flow to be measured at Licensee gage NF57.

(6) Pulses are 12 hrs continuous duration, and no riparian flows occur.

(7) The base flow of 150 cfs shall be increased to 200 cfs, or to any flow between 150 and 200 cfs, to the extent necessary to contribute to the maintenance of mean daily temperatures of 20 degrees Celsius or less in the Rock Creek Reach. Similarly, this increased flow shall be reduced back to the 150 cfs base flow when not required to maintain mean daily temperatures of 20 degrees Celsius in the Rock Creek Reach. For the first three years after issuance of a New Project license, or until a temperature model as referred to in Section I, Paragraph 3 is developed, Licensee shall use the mean daily water temperature measured at NF 57 to determine whether and how to implement this flow provision. This flow provision shall not apply, and the base flow shall remain at 150 cfs, if the ERC and FS determine, based on a review of temperature monitoring results or by assessment from a reasonably accurate water temperature model, that the increase in base flows will not result in a reduction in water temperature beneficial to cold freshwater habitat, or the cost of the increase in base flow is dramatically disproportional to the benefit. To implement this flow provision, Licensee shall, in consultation with the ERC and FS, submit to FERC for approval, as soon as practicable but no later than one year after issuance of a New Project license, a Critically Dry Year Flow Operations and Compliance Plan. The plan shall establish reasonable procedures and criteria to support maintenance of mean daily water temperatures of 20 degrees Celsius. These procedures and criteria shall be similar for both increasing flows up to 200 cfs (or any flow between 150 and 200 cfs) and decreasing flows back to 150 cfs.

Table A.2 (Continued)

Cresta Reach Minimum River Flow, Pulse, and Ramping
Second 5-Year Flow Period - Normal & Wet Years (8)
Season	Month	Base Flow (cfs) (5)	Pulse (cfs) (6)	Ramping Rate (cfsD/hr)	Block Loading	Boating Flow (cfs)	Launch Window
Spring	Mar	350	2 @ >1600

Appendix A. Protection, Mitigation, and Enhancement Measures Recommended to be Included in New Project License, Section 4(e) Conditions, and Other Mandatory License Conditions
Section I. Water Temperature Management	A-1
Section II. River Flow Management	A-6
Section III Habitat Improvements	A-27
Section IV. River Sediment Management	A-28
Section V. Recreation Flow Management	A-29
Section VI. River Recreation Facilities	A-32
Section VII. Public Recreation Monitoring	A-33
Section VIII. Ecological Resources Committee	A-33

Appendix B. Measures Agreed to Among the Parties But Not to be Included in New Project License, Section 4(e) Conditions, or Other Mandatory License Conditions
Section I. Objectives	B-1
Section II. Ecological Resources Committee	B-5
Section III Habitat Mitigation	B-8
Section IV. Block Loading	B-11
Section V. Monitoring Plan	B-11

1. Introduction
1.1 Parties	1
1.2 Recitals	1
1.3 Effective Date of Settlement	2
1.4 Term of Settlement	2
1.5 Definitions	2

2. Purpose of Settlement
2.1 Purpose	5
2.2 Resolved Subjects	5
2.3 Unresolved Subjects	6
2.4 Relationship to 1991 Fish and Wildlife Agreement	6
2.5 No Precedent for Other Proceedings	6
2.6 Compliance with Legal Responsibilities	6
2.7 Reservation of Claims, Rights, and Responsibilities	7
2.8 Term of New Project License	7

3. Use of Settlement in New Project License and Section 4(e) Conditions
3.1 Protection, Mitigation, and Enhancement Measures Recommended to be Included in New Project License	7
3.2 Protection, Mitigation, and Enhancement Measures Recommended to be Included in Section 4(e) Conditions	8
3.3 Relationship of Settlement to Section 7 Consultation	8
3.4 Measures Agreed to But Not to be Included in New Project License or Section 4(e) Conditions	8

4. Implementation of Settlement
4.1 Support of Settlement	8
4.2 Support for Issuance of New Project License	8
4.3 New Project License, Final 4(e) Conditions, or Other Mandatory Conditions Inconsistent with this Settlement	9

	page
4.4 Appeal of New Project License, Final 4(e) License Conditions, or Other Mandatory Conditions Inconsistent with this Settlement	10
4.5 Cooperation Among Parties	11
4.6 Implementation Schedule	13
4.7 Reopener or Amendment of New Project License	13
4.8 Amendment of Settlement	14
4.9 Dispute Resolution	14
4.10 Withdrawal from Settlement	15
4.11 Termination of Settlement	16

5. General Provisions
5.1 Non-Severable Terms of Settlement	17
5.2 No Third Party Beneficiaries	17
5.3 Successors and Assigns	17
5.4 Failure to Perform Due to Force Majeure	17
5.5 Governing Law	18
5.6 Elected Officials Not to Benefit	18
5.7 No Partnership	18
5.8 Reference to Regulations	18
5.9 Notice	18
5.10 Paragraph Titles for Convenience Only	18

6. Execution of Settlement
6.1 Signatory Authority	18
6.2 Disclosure of Other Agreements	19
6.3 Signing in Counterparts	19

Appendix C. Authorized Representatives of Parties	C-1