Magalie R. Salas

Secretary

Federal Energy Regulatory Commission

Mail Code: DHAC, PJ-12

888 First Street NE

Washington, D.C. 20426

RE: Delays in the decommissioning of Dillsboro Dam, and licensing of Nantahala and Tuckasegee projects, owned by Duke Energy, in North Carolina

Dear Secretary Salas:

We are writing today, deeply concerned by the delays in the decommissioning of Dillsboro Dam (P-2602) and the licensing of the Nantahala (P-2692), East Fork (P-2698), and West Fork (P-2686) projects. In the fall of 2003, American Whitewater signed a robust and comprehensive settlement agreement with Duke Power and dozens of other stakeholders that calls for the removal of Dillsboro Dam, and a suite of other environmental and recreational mitigation measures. We fully anticipated a timely licensing by the FERC in early 2006, and anxiously prepared to implement the settlement agreement. Thus far however, FERC has not accepted the license surrender for Dillsboro Dam or issued the licenses for the other projects. The delay has resulted in an annual license and the delay of valuable recreational mitigation that our members are anxious to take part in.

It appears that a procedural standoff may be the reason for this delay. Specifically, the FERC may be waiting until the North Carolina Division of Water Quality (NCDWQ) issues the 401 Water Quality Certificates for all the projects before FERC issues the licenses and license surrender, while the NCDWQ may be waiting for FERC to issue the license surrender before issuing the 401 certificates for the projects other than Dillsboro. The FERC is doing so presumably out of a desire to issue all the orders together. NCDWQ is doing so presumably to assure Dillsboro Dam will be removed as mitigation, in order to protect their (and our collective) interests expressed in the Settlement Agreement.

If this is indeed the case, we hereby ask the FERC to break this stalemate immediately by issuing the acceptance of license surrender for Dillsboro Dam. Doing so will provide the security that American Whitewater desires prior to the licensing of the other projects. It would also allow the certification and licensing of the other projects to move forward, and mitigation to begin.

Right now, whitewater paddlers should be putting the finishing touches on a trail into the beautiful High Falls of the Tuckasegee, and gearing up to use that trail to access the West Fork of the Tuckasegee on the first recreational releases on this dewatered gem. They should be working with local stakeholders to prepare for recreational releases on the Upper Nantahala. This spring, multiple river sections should be benefiting from restored flows, with more aquatic organisms breeding with more success than they have in decades. Dillsboro Dam should be on the way out, soon to reconnect dozens of miles of aquatic habitat. None of this is happening. Procedural delays have very real impacts on the ground, and on the rivers.

American Whitewater humbly asks that the FERC promptly take whatever steps are necessary to usher in the removal of Dillsboro Dam and the licensing of the Nantahala and Tuckasegee Projects as requested in the comprehensive settlement agreement filed by Duke Power and signed by American Whitewater and dozens of other groups. In addition we ask that you promptly issue a response to these concerns and a schedule for licensing and surrender. Regardless of the cause, the delay is drastically impacting our interests, and we would greatly appreciate movement on these very important projects.

Thank you.

Sincerely,

Kevin Colburn

National Stewardship Director