T29S R22 & 23W TERROR LAKE - ZCP 3/8/2018Kodiak Island Borough Print For Submit by Email
Community Development Department
710 Mill Bay Rd. Rm 205
Kodiak AK 99615
Ph. (907) 486 - 9363 Fax (907) 486 - 9396
http://www.kodiakak.us
Zoning Compliance Permit Permit No. 6Z 2v($ -U q S
The following information is to be supplied by the Applicant:
Property Owner / Applicant: Kodiak Electric Association, Inc. /KT-e, / 5 F,, p { 4ia,y-,
Mailing Address: PO Box 787
Phone Number: (907)654-7667
Other Contact email, etc.: jrichcreek@kodiak.coop
Legal Description:
Subdv: SEE STAFF NOTES Block: Lot:
Street Address: N/A Remote area adjacent to Terror Lake Hydroelectric project
Use & Size of Existing Structures: No improvements currently exist on site.
Description of Proposed Action: Construct tunnel and service facilities to support Terror Lake hydroelectric project.
Site Plan to include: Lot boundaries and existing easements, existing buildings, proposed location of new construction, access points,
and vehicular parking areas.
Staff Compliance Review: Current Zoning: Conservation KIBC 17.50 PROP_ID�
Lot Area: 1,585,780 acres Lot Width: 250' Bld'g Height: 35 ', 50' accessory
Front Yard: 25 ' Rear Yard: 25 ' Side Yard: 25'
Prk'g Plan Rvw? Not Applicable # of Req'd Spaces:
Staff Compliance Review Notes:
Plat/ Subdivision Requirements?
Conditional use permit for utility facilities approved for case 17-032, approval letter attached.
SW Portion of Section 31, T29S R23W,SM; NE Portion of Section 6, T30S
R23W, SM; N Portion Section 5, T30S R23W, SM; and NW Portion Section 4, T30S R23W, SM
n
Er, 1 t.c-f > puw St Lt,-,0 r rr.,.h-, . 5u a i c ru(
Subd Case No. Plat No. Bld'g Permit No. TBD Bldg Dept
Does the project involve NO
an EPA defined facility?
'Commercial buildings, Installations (military bases),
Institutions (schools, hospitals) and residences with
more than four (4) dwelling units.
Driveway
Permit?
Septic Plan
Approval:
Fire
Marshall:
TBD KIB Engineering Department
TBD Bldg Department
TBD Bldg Department
Proof of EPA notification provided (if required)? NO
*Requiredfor all demolitions, for renovations disturbing at least 160 square
feet 260linearfeet oras cubic feet of Regulated Asbestos Containing Material (RACM), and
for renovations that remove a load -supporting structural member.
No permit will be issued for such projects without proof of EPA notification
Applicant Certification: I hereby certify that I will comply with the provisions of the Kodiak Island Borough Code and that l
have the authority to certify this as the property owner, or as a representative of the property owner. l agree to have Identifiable
corner markers in place for verification of building setback (yard) requirements.
Attachments? Site Plan List Other: USFWS ROW, DNR Easement, DNR Land Lease EA
Date: Mar 5, 2018 Signature:
This permit is only for the proposed project as described by the applicant. If there are any changes to the
proposed project, including its intended use, prior to or during its siting, construction, or operation, contact
this office immediately to determine if further review and approval of the revised project is necessary.
THIS FORM DOES NOT AUTHORIZE CONSTRUCTION WHEN A BUILDING PERMIT IS REQUIRED.
"EXPIRATION: Any zoning compliance permit issued is subject to the same expiration, suspension, and revocation provisions as a
building permit issued for the same construction permit. -
CDD Staff Certification
JAatL6, Z/ Zo(
Date: Mar 5, 2018 CDD Staff:
Payment Verification Zoning Compliance Permit Fee Payable in Cashier's Office Room # 104 - Main floor of Borough Building
After -the -Fact 2X the published amount
Not Applicable
❑ $0.00
❑
$0.00
Less than 1.75 acres:
❑ $30.00
❑
$60.00
1.76 to 5.00 acres:
❑ $60.00
❑
$120.00
5.01 to 40.00 acres:
❑ $90.00 C 1_
❑
$180.00
40.01 acres or more:
❑_=0.9a In X11 ' "
FIA�(
❑
$240.00
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PAYMENT DATE
Kodiak Island Borough
BATCH NO.
03/08/2018
710 Mill Bay Rd.
2018-00000473
COLLECTION STATION
Kodiak, AK 99615
RECEIPT NO.
CASHIER
2018-00000925
RECEIVED FROM
CASHIER
KEA
Cashier
DESCRIPTION
BZ -2018-045
PAYMENT CODE ' RECEIPT DESCRIPTION ' TRANSACTION AMOUNT
Compliance 0.00
Payments: Type Detail Amount
Check 130582 $120.00
Total Amount: $120.00
Customer Copy
Printed hv- Cashier Pane 1 nf 1 wunRi9n1R nq-97•'%d PM
July 26, 2017
Kodiak Island Borough
Community Development Department
710 Mill Bay Road
Kodiak, Alaska 99615
Phone (907) 486-9363 Fax (907) 486-9396
www.kodiakak.us
Ms. Jennifer Richcreek
Kodiak Electric Association, Inc.
PO Box 787
Kodiak, AK 99615
Re: Case 17-032. Request a Conditional Use Permit to allow for the construction of
utility facilities related to the Terror Lake Hydroelectric project on a parcel zoned
C -Conservation (Chapter 17.50.040 KIBC).
Dear Ms. Richcreek:
The Kodiak Island Borough Planning and Zoning Commission at their meeting on July
19, 2017, granted the conditional use permit request cited above, subject to the
following conditions:
CONDITIONS OF APPROVAL
1. This hydroelectric project shall be constructed, operated, and maintained in
compliance with Federal Energy Regulatory Commission License requirements and
all other federal, state, and local regulations.
2. The vegetation around the hydroelectric project shall be maintained to the maximum
extent possible and areas disturbed during construction shall be re -vegetated as
necessary.
3. Should this project be abandoned for any reason, all visible improvements shall be
removed and the affected areas shall be returned to their natural state within two
years of abandonment.
4. This Conditional Use Permit shall not be effective until the Federal Energy
Regulatory Commission license and conservation easement amendments are
approved.
The Commission adopted the following findings in support of their decision:
FINDINGS OF FACT
1. This hydroelectric project will be constructed, operated, and maintained in
compliance with Federal Energy Regulatory Commission License requirements and
all other federal, state, and local regulations. Appropriate measures will be taken to
minimize impacts to the surrounding area. The conditions of approval should further
ensure that this project will have no negative impacts to the value, spirit, character,
and integrity of the surrounding area or harm to the public health, safety,
convenience, or comfort.
2. The conditional use is consistent with the 2008 Comprehensive Plan and will fulfill all
the requirements of the C -Conservation zoning district.
3. The selected site fulfills all engineering requirements and provides for sufficient
setbacks, buffers, and other safeguards.
4. This facility is part of a project to benefit the public of Kodiak Island Borough by
increasing hydroelectric power generation capacity.
THIS APPROVAL DOES NOT ALLOW ANY CONSTRUCTION TO BEGIN. Zoning
compliance and/or a building permit must first be obtained. An approved conditional use
permit must be permitted within a two-year period to be valid. Please contact this office
for further details.
According to KIBC 17.200.080:
The commission's action may be appealed to the assembly by any party by filing a
written notice of appeal with the Borough Clerk within twenty (20) calendar days of the
Commission's decision. The notice of appeal must state the specific grounds for the
appeal and the relief sought by the appellant, and is accompanied by the $350 appeal
fee. Therefore, the Commission's decision will not be final and effective until twenty (20)
days following the decision.
This letter shall constitute the conditional use permit. Please bring it when you come to
our office to obtain zoning compliance for any construction on the property.
If you have any questions about the action of the Commission, please contact the
Community Development Department at 486-9363.
Sincerely,
1��VXPJCX ��o
Sheila Smith, Secretary
Community Development Department
CC: Nova Javier, Borough Clerk
Planning and Zoning Commission
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Right -of -Way Permit E -315 -KE
..,...,..... • .................................
Kodiak l�leciric Association, Inc.
SL1bterrRnC?Rn TLmnel Upper Hidden Rasin Diversion Project,
('1'error Lnke Hydroelectric Project)
Kodiak National Wildlife Raftige, Alaska
THE SECRETARY OF THE INTERIOR, through his authorized representative, the Chief, Division of
Realty, Region 7, U.S. Fish and Wildlife Service, hereinafter referred to as the "Service", in accordance
with 16 U.S.C. § 668dd (d), 50 C.F.R. § 29.21, 16 U.S.C. §§ 3161-3173, and 43 C.F.R. § 36, does hereby
grant a permit to Kodiak Electric Association, Inc., hereinafter referred to as "Permittee" or "KEA", to use
and occupy certain lands located within the Kodiak National Wildlife Refuge (Refuge) in Alaska,
hereinafter referred to as the "Refuge" for the purpose of constructing, operating, maintaining, and
terminating a subterranean tunnel associated with the Upper Hidden Basin Diversion (UHBD) project. The
subterranean tunnel will allow for the passage of additional water to Terror Lake and the existing Terror
Lake Hydroelectric facilities, which will provide an increase in the annual hydroelectric generation by
about 33 gigawatt -hours (GWh) and will contribute to the continued renewable hydropower generation that
displaces diesel fuel consumption in the communities of Kodiak.
RECITALS:
- The existing Terror Lake Hydroelectric Project, FERC No. 2743 was licensed by FERC in 1981 and
amended in 1982, 1986 and 1994. The existing project is located on the Terror and Kizhuyak Rivers in
Kodiak Island Borough, Alaska and occupies federal lands located within the Refuge that are administered
by the U.S. Fish and Wildlife Service, Department of Interior and on federal lands administered by the U.S.
Coast Guard. The existing facilities include rockfill dams, spillway, reservoir, tunnels, penstock, power and
valve houses, turbines, generators, telecommunications equipment, channels, switchyard, electrical
transmission lines and access facilities that include a jetty, access road and appurtenant facilities.
ROW Penin E-315 KD
Lipper Hidden Clasen Dneruon Project (Terror Lake 11)drol
Kodiak Electric Association
Page 1 of I
- On May 26, 2016, KEA, the licensee for the existing Terror Lake Hydroelectric Project No. 2743 filed an
application to amend its license for an action that is referred to as the Upper Hidden Basin Diversion
(UHBD) project. The amendment application was supplemented on October 6, 2016 and April 1 l , 2017.
The UHBD project involves the construction, operation and maintenance of two new diversion dams on the
Upper Hidden Basin Creek, an underground water pipeline, and a12 -mile -long underground tunnel to
divert additional water into Terror Lake, as well as a 4 -mile -long access road that will extend from the
existing road network to the site of the new diversion dams.
- The construction of the UHBD facilities will occur mostly on lands owned by the State of Alaska,
however, the underground tunnel will occupy an additional 2 -acres of federal land located within the
Refuge, which is administered by the Service.
- The existing FERC -licensed project boundary occupies federal land administered by the U.S. Fish and
Wildlife Service and by the U.S. Coast Guard. The UHBD project will revise and expand the existing
FERC -licensed project boundary by approximately 160 acres. Of the approximate 160 acres, 158 acres of
the expanded boundary will extend into State of Alaska owned lands and 2 acres (a segment of the tunnel)
of the expanded boundary will extend into Refuge lands. The remaining portion of the underground tunnel
will be located on lands owned by the State of Alaska.
- The tunnel construction will produce approximately 40,000 cubic yards of spoils that will be placed on a
designated 8 -acre site near Terror Lake. The spoils will be spread and graded to simulate natural contours,
covered by previously removed topsoil and revegetated with native plant species present in the area. This
8 -acre site is located within the boundaries of the FERC -designated project boundary.
A more detailed description of the information contained in the above Recitals can be found in the FERC
Order Amending License, Revising Project Description and Annum Charges, and Approving Erhibit L
Drawings, issued June 28, 2017, which is attached hereto and incorporated into this permit as Exhibit "A".
Additional information can also be found in the Environmental Assessment report dated May 2017.
1. RIGHT-OF-WAY AUTHORIZATION:
ROW Permit E -315 -KD
Upper Hidden Basin Marston Project (Terror Lake H)dro)
Kodiak Electric Association
Page 2 of 2
This right-of-way permit authorizes the Permittee to install, operate, maintain, terminate and restore that
segment of an underground hydropower diversion tunnel located on Refuge lands, hereinafter referred to as
the "Project".
2. RIGHT-OF-WAY AREA:
The Project area is comprised of that segment of the underground tunnel located on Refuge land, which will
occupy a footprint of not to exceed 2 acres.
3. PROJECT LOCATION/LEGAL DESCRIPTION:
3.1. The Project is located about 30 miles from the City of Kodiak. The Project location is further
described as being located within:
Section 6, Township 30 South, Range 23 West, Seward Meridian, Alaska.
3.2 The project location is depicted in the document prepared by Dow] entitled "Property Ownership
Map" dated July 30, 2015, which is hereby incorporated into this permit as attached Exhibit "B". The
permitted segment of the tunnel is shown by a red line that begins at the Kodiak National Wildlife Refuge
boundary. The segment of the permitted tunnel is also depicted on a draft document prepared by Lachel &
Associates entitled "Plan and Profile Sheet 1 of I Tunnel" and noted as "Drawing Number 4", which is
attached hereto as Exhibit "C" and incorporated into this permit. The topography of the project area is
reflected in the annotated satellite imaging entitled "Conceptual Layout", which is attached hereto as
Exhibit "D" and incorporated into this permit.
4. PROJECT CONSTRUCTION
The construction of the tunnel will be performed by using drill and blast techniques and/or a tunnel boring
machine, depending upon the schedule and availability of equipment. The tunnel construction will produce
approximately 40,000 cubic yards of spoils that will be placed on an 8 -acre site located near Terror Lake
ROW Pennit E -315 -KD
Upper Hidden Basin Disersion Project (Terror Lake 1{)drol
Kodiak Electric Association
Page 3 of 3
and will be graded to simulate natural contours. The material will then be covered by previously removed
topsoil and the area will be re -vegetated.
5. TERM
5.1 The term of this Permit is will expire on October 31, 2031 or while it is used for the purpose
granted, whichever period is shorter. The permit term is designed to match the term for the FERC license.
The term of the Permit shall commence upon signature by both parties.
a) If construction is not commenced within 2 -years after Permit, the Chief, Division of Realty may terminate
the Permit in accordance with Condition 7.25 below.
b) The Permittee has the option to apply for a term extension of the Permit. No later than six (6) months
prior to the termination of this Permit, Permittee may make a request to the Chief, Division of Realty for an
extension of the term of this Permit. Extension of the Permit term shall not be unreasonably withheld if the
FERC license that is set to expire on October 31, 2031 is renewed, the project is in operation, is in
compliance with the terms of this Permit and the future use and configuration of the facilities will be
substantially similar to those authorized in this Permit or any subsequent amendments.
6. INSURANCE
a) Prior to commencement of authorized activities, the Permittee shall provide to the Chief, Division of
Realty, 1011 E. Tudor Rd, MS -211, Anchorage, Alaska 99503, a binder or Certificate of Insurance
demonstrating that the policy is in place and effective, as required below.
b) Permittee shall maintain in effect throughout the tern of this Permit, general liability insurance with a
single limit of $5,000,000 per occurrence. Such insurance shall specifically insure the Permittee against all
commercial general liability assumed by it under this Permit (subject to the customary terms and conditions
of such policies), shall name the United States as an additional insured and shall contain a waiver of
subrogation provision.
ROW Permn E-31 i.KD
Upper Iltdden Basin Diversion Project rTerroi Like Hydro)
Kodiak Electric Association
Page 4 of 4
7. GENERAL TERMS AND CONDITIONS
7.1 Meanings of certain terms used herein:
a) The term "Authorized Officer' means the Refuge Manager, Kodiak National Wildlife Refuge National
Wildlife Refuge, or designated representative in charge of the land under administration by the U.S. Fish
and Wildlife Service.
b) The "Chief, Division of Realty" is the Chief, Division of Realty, Region 7 (Alaska Regional Office), U.S.
Fish and Wildlife Service, 1011 E. Tudor Rd, MS -211, Anchorage, Alaska 9903.
c) The "Regional Director" is the Regional Director of Region 7 (Alaska Regional Office), U.S. Fish and
Wildlife Service.
d) Permittee is the Permittee, its employees, agents, contractors, or employees of its contractors.
7.2 The Authorized Officer will monitor compliance with Permit terms, conditions and stipulations.
7.3. The Service reserves the right to grant additional rights-of-way or permits for compatible uses on or
adjacent to the right -of way granted by this Permit after giving notice to Permittee and an opportunity for the
Permittee to comment.
7.4 The Permittee is responsible for obtaining all necessary State, Federal and/or Kodiak Island
Borough permits prior to the start of construction.
7.5 Permittee will comply with the Archaeological Resources Protection Act (16 U.S.C. 470aa). The
disturbance of archaeological or historical sites and the removal of artifacts from Federal land are prohibited. If
such sites or artifacts are encountered, the Permittee will immediately cease all work upon Federal land and
notify the Authorized Officer.
ROW Permit E 3Ii-KD
Upper Hidden Basin Diversion Project (Terror Lake Hydro)
Kodiak Electric Association
Page 5 of 5
7.6 Consistent with 50 C.F.R. 25.21(h), the Authorized Officer may require Permit modifications at
any future time to ensure compatibility with the use and occupancy of the land. Additional Permit conditions
and stipulations may be added over the life of the Permit based on new information, technologies, or concerns.
7.7 By accepting this Permit, the Permittee agrees to reimburse the United States for costs incurred by
the Service in processing the Permit application, issuing the Permit, monitoring the construction/installation,
operation, maintenance, removal of facilities within or adjacent to the Permit area and following removal, the
restoration of the land.
7.8 This Permit is granted subject to outstanding rights, if any, in third parties.
7.9 Permittee, by accepting this Permit, agrees to the terms and conditions contained herein.
7.10 Permittee, its employees, contractors, or employees of the contractors shall comply with State and
Federal laws applicable to the project within which the Permit is granted, and to the lands included in the
right-of-way, and lawful existing regulations thereunder.
7.11 Permittee shall clear and keep clear the lands within the right-of-way and Permit area to the extent
and in a manner directed by the Authorized Officer; and to dispose of all vegetative and other material cut,
uprooted, or otherwise accumulated during the construction, operation, maintenance, removal and restoration of
the Project in such a manner as to decrease the fire hazard and also in accordance with such instructions as the
Authorized Officer may specify.
7.12 Permittee shall prevent the disturbance or removal of any public land survey monument or project
boundary monument unless Permittee has requested and received from the Authorized Officer approval of
measures the Permittee will take to perpetuate the location of aforesaid monument.
7.13 Permittee shall take such soil and resource conservation and protection measures, including weed
control on the land covered by the Permit as the Authorized Officer may request.
ROW Peint8315KD
Upper Hidden Basin Dnersion Project (Tenor Lake FI)dro!
Kodiak Electric Association
Pace 6 of 6
7.14 Permittee shall do everything reasonably within its power, both independently and on request of
any duly authorized representative of the United States, to prevent and suppress fires on or near, lands to be
occupied under the Permit area, including making available such construction and maintenance forces as may
be reasonably obtainable for the suppression of such fires.
7.15 Permittee shall rebuild and repair such roads, fences, structures, and trails as may be destroyed or
injured by construction work and upon request by the Authorized Officer, to build and maintain necessary and
suitable crossings for all roads and trails that intersect the works constructed, maintained or operated under the
right-of-way.
7.16 Permittee shall pay the United States the full value for all damages to the lands or other property of
the United States caused by Permittee, its employees, agents, contractors, or employees of the contractors, and
to indemnify the United States against any liability for damages to life, person or property arising from the
occupancy or use of the lands under the Permit, except where the easement or permit is granted hereunder to a
State or othergovernmental agency which has no legal power to assume such a liability with respect to damages
caused by it to lands or property, such agency in lieu thereof agrees to repair all such damages. Where the
Permit involves lands that are under the exclusive jurisdiction of the United States, the Permittee, or its
employees, contractors, or agents of the contractors, shall be liable to third parties for injuries incurred in
connection with the easement or Permit area. Grants of easements or permits involving special hazards will
impose liability without fault for injury and damage to the land and property of the United States up to a
specified maximum limit commensurate with the foreseeable risks or hazards presented. The amount of no-fault
liability for each occurrence is hereby limited to no more than $5,000,000.00.
7.17 Permittee shall promptly notify the Authorized Officer in charge of the amount of merchantable
timber, if any, which will be cut, removed, or destroyed in the construction and maintenance of the Project, and
to pay the United States in advance of construction such sura of money as the Project Manager may determine
to be the full stumpage value of the timer to be so cut, removed, or destroyed.
7.18 All or any part of this Permit may be terminated by the Chief, Division of Realty, for failure to
comply with any or all of the terms or conditions of the grant, or for abandonment. A rebuttable presumption of
ROW Penna C-315 KD
11PIxr Hidden Basin Diversion Project (Tenor Lake Hydro)
Kodiak Electric Association
Page 7 of 7
abandonment is raised by deliberate failure of the Permittee to use for any continuous 2 -year period the Permit
for the purpose for which it was granted or renewed. In the event of noncompliance of abandonment, the Chief,
Division of Realty will notify in writing the Permittee of the Service's intention to suspend or terminate the
Permit grant 60 days from the date of the notice, stating the reasons therefor, unless prior to that time the
Pennittee completes such corrective actions as are specified in the notice. The Chief, Division of Realty may
grant an extension of time within which to complete corrective actions when, in the Service's judgment,
extenuating circumstances not within the Permittee's control such as adverse weather conditions, disturbances
to wildlife during breeding periods or periods of peak concentration, or other compelling reasons warrant.
Should the permittee holder of a right-of-way permit issued under authority of the Mineral Leasing Act, as
amended, fail to take corrective action within the 60 -day period, the Regional Director will provide for an
administrative proceeding pursuant to 5 U.S.C. 554, prior to a final Departmental decision to suspend or
terminate the right-of-way permit. In the case of all other right-of-way permit holders, failure to take corrective
action within the 60 day period will result in determination by the Chief, Division of Realty to suspend or
terminate the permit. No administrative proceeding shall be required where the easement or permit terminates
under its terms.
7.19 Permittee shall restore the land to its original condition to the satisfaction of the Authorized Officer
so far as it is reasonably possible to do so upon revocation and/or termination of the Permit, unless this
requirement is waived in writing by the Chief, Division of Realty. Termination also includes permits or
easements that terminate under the terms of the Permit grant. Restoration requirements are further set forth in
Special Stipulation number 8.5.
7.20 Permittee shall keep the Authorized Officer and the Chief, Division of Realty informed at all times
of the Permittee's address, and, in case of corporations, of the address of its principal place of business and the
names and addresses of its principal officers,
7.21 In the construction, operation, maintenance, removal and restoration of the project, Permittee, its
employees, contractors, or employees of the contractors shall not discriminate against any employee or
applicant for employment because of race, creed, color, or national origin and shall require an identical
provision to be included in all subcontracts.
ROW Permit E-315 KD
Upper Hidden Basin Dt%crston Ptoject (Terror Lake I I)dro)
Kodiak Electric Association
Pace 8 of 8
7.22 The grant of the Permit shall be subject to the express condition that the exercise thereof will not
unduly interfere with the management, administration, or disposal by the United States of the land affected
thereby. The Permittee agrees and consents to the occupancy and use by the United States, its grantees,
permittees, or lessees, of any part of the Permit area not actually occupied for the purpose of the granted rights
to the extent that it does not interfere with the full and safe utilization thereof by the Permittee. The Permittee
also agrees that authorized representatives of the United States shall have the right of access to the Permit area
for making inspections and monitoring the construction, operation and maintenance of facilities.
7.23 The Permit herein granted shall be subject to the express covenant that any facility constructed
thereon will be modified or adapted, if such is found by the Authorized Officer to be necessary, without liability
or expense to the United States, so that such facility will not conflict with the use and occupancy of the land for
any authorized works which may hereafter be constructed thereon under the authority of the United States. Any
such modification will be planned and scheduled so as not to interfere unduly with or have minimal effect upon
continuity of energy and delivery requirements.
7.24 The Permit herein granted shall be for the specific use described and may not be construed to
include the further right to authorize any other use within the Permit area unless approved in writing by the
Chief, Division of Realty.
7.25 CONSTRUCTION
(a) If construction is not commenced within two (2) years after date of right-of-way grant, the right-of-way
Permit may be canceled by the Chief, Division of Realty at his/her discretion.
(b) Proof of construction. Upon completion of construction, the Permittee shall file a certification of
completion and as -built drawings and survey of the completed facilities with the Authorized Officer and the
Chief, Division of Realty.
7.26 DISPOSAL, TRANSFER OR TERMINATION OF INTEREST
ROW Permit E-315 KD
Upper Hidden !Yasin Diserslon Project (Tenor Lake 11ydio)
Kodiak Electric Association
Page 9 of 9
(a) Change in jurisdiction over and disposal of*lands. The final disposal by the United States of any tract of
land traversed by a right-of-way shall not be construed to be a revocation of the right-of-way in whole or in part,
but such final disposition will be deemed and taken to be subject to such right-of-way unless it has been
specifically canceled.
(b) Transfer of easement or permit. Any proposed transfer, by assignment, lease, operating agreement or
otherwise, of this Permit, must be filed in triplicate with the Chief, Division of Realty and must be supported by
a stipulation that the transferee agrees to comply with and be bound by the terms and conditions of the original
Permit grant and Permit amendments, if any. A $25.00 non -returnable service fee must accompany the
proposal. No transfer will be recognized unless and until approved in writing by the Chief, Division of Realty.
(c) Disposal of'property on termination of right -of -u -ail permit. In absence of any agreement to the contrary, the
Pennitee will be allowed 6 months after termination to remove all property or improvements, placed thereon by
Permitee; otherwise all such property and improvements shall become the property of the United States.
Extensions of time may be granted at the discretion of the Chief, Division of Realty.
8. SPECIAL STIPULATIONS
8.1 Permittee shall follow and comply with the requirements of the Spill Prevention Control and
Countermeasure Plan prepared by SLR International Corporation for Kodiak Electric Association, Inc., which
is hereby incorporated into this permit as attached Exhibit "E".
8.2 Permittee shall follow and comply with the requirements of the Kodiak Electric Association, Inc.'s
Bear Safety Plan, which is hereby incorporated into this permit as attached Exhibit 'T".
8.3 In addition to the requirement contained in Special Stipulation 82 above, should a bear incident
occur, Permittee must complete and submit to the Authorized Officer the attached Hinnan-Bear Incident Report
which is hereby incorporated into this permit as attached Exhibit "G". A bear incident is defined as the taking or
ROW Permit r315 KD
Upper Ihdden Dasin Dhersion Project ITerror Lake 117dro1
Kodiak Electric Association
Page 10 of 10
attempting to take a bear in defense of life or property; use of less -lethal deterrents, use of non -lethal deterrents;
human injury or death; or damage to camp or equipment by bear(s).
8.4 Permittee shall follow and comply with the requirements of the Kodiak Electric Association, Inc.'s
KEA Contract Terms and Conditions, Special Provisions Related to Safety & Environniental Protection, which
is hereby incorporated into this permit as attached Exhibit "H".
8.5 Within 1 -year after abandonment or within 1 -year after expiration or other termination of this
permit, Permittee shall at its own expense reclaim and restore the land covered by this ROW permit. The
restoration work will be comprised of plugging the tunnel and removing the existing outlet structure. The area
will then be covered and revegetated. A final inspection of the restoration work will be conducted by the
Authorized Officer, as per General Stipulation number 7.19.
9. FINAL `4(e) CONDITIONS' (taken from the FERC Order Amending License, Revising Project
Description and Annual Charges, and Approving E-vhibit L Drawings, issued June 28, 2017, attached as Exhibit
,.A„)
9.1 (Condition 1)
At least six months before the start of any land -disturbing or land -clearing activities associated with
Project construction, the licensee must file, for Commission approval, a vegetation management plan
(Plan), approved by the Kodiak National Wildlife Refuge Manager, which provides the elements
specified below. The purposes of this plan are to establish a diversity of native vegetation on all tunnel
rock placement areas and associated paths and storage areas disturbed by Project construction; and to
prevent introduction and spread of invasive species and noxious weeds during Project construction
and operation.
The Plan must be developed after consultation with the Service and the Plant Materials Center, Alaska
Division of Agriculture. The licensee must include with the plan: documentation of consultation,
ROW Penna E -315 -KD
Upper Hidden Basin Dnetsion Project iTerror Lake hydro)
Kodiak Electric Association
Page I I of I I
copies of comments and recommendations on the completed plan after it has been prepared and
provided to the agencies, and specific descriptions of how the agencies' comments are accommodated
by the Plan. The licensee must allow a minimum of 30 days for the agencies to comment and to make
recommendations before filing the plan with the Commission. If the licensee does not adopt a
recommendation, the filing must include the licensee's reasons, based on Project -specific information.
The Commission reserves the right to require changes to the plan. Implementation of the plan must
not begin until the licensee is notified by the Commission that the Plan is approved. Upon
Commission approval, the licensee must implement the Plan, including any changes required by the
Commission.
The Plan should include, at a minimum, provisions for:
1. A pre -disturbance vegetation survey by a qualified botanist documenting baseline conditions,
including lists of native and non-native plant species, percent of vegetated and non -vegetated areas,
and relative abundance of species (by canopy cover) present on the proposed disposal site and
associated disturbed areas.
2. A plan to establish at least 60 percent of the baseline canopy cover by dominant, native species on
areas to be revegetated. Objectives for species diversity must also be included.
3. A timeline for attainment of revegetation objectives.
4. A monitoring plan, implemented by a qualified botanist, to document progress toward revegetation
objectives.
ROW Pennu E 315 KD
Upper 4hdden Basin Dncrsian Project (Tenor Lake I1}dro)
KadiA Electric Association
Page 12 of 12
5. An adaptive management plan to address any failures to meet revegetation objectives by the times
specified in the Plan.
6. A plan for identifying and controlling invasive species, including a description of best management
practices to be followed to prevent introduction and spread of invasive plants during Project
construction and operation. Measures shall include provisions to clean (e.g., power wash) and inspect
all construction related equipment and materials off-site prior to entry into the Project area, and use of
certified weed -free seed if seeding is used to re -vegetate the site.
7. Monitoring for, and treatment of, invasive species during and after construction. The licensee shall
be responsible for treatment and at least two years of post-treatment monitoring if new invasive
species are present post -construction (i.e., not in pre -construction survey).
9.2 (Condition 2)
Construction activities and project -associated helicopter traffic at the portal site (south end of Terror
Lake) is prohibited from January I to June 1 of each year to avoid disturbance of brown bears in, and
emerging from, dens.
9.3 (Condition 3)
Withdrawn
9.4 (Condition 4)
The licensee shall develop and submit a written plan to manage water levels in Terror Lake to ensure
availability of sufficient water to meet the instream flow requirements specified in Article 43 during
ROW Permit 6-31 i. KD
Upper Hidden Basin Dnersion Piojcct (Tenor Lake Hydro)
Kodiak Electric Association
Pace 13 of 13
periods of low reservoir inflows (e.g., during periods of low precipitation, Unusually cold spring
weather, etc.).
9.5 (Condition 5)
The licensee will develop a plan to monitor waste rock leachate during ConsU•uction, to test for acid
production from rock excavated frons the tunnel. Monitoring will Continue through the construction
period each year until surface water at the waste rock disposal site freezes in the fall. if acid drainage
is (Iocumented, the licensee will develop and implemerit illeasures to mitigate and manage the acid
drainage from the waste Pock. All adaptive management approach may be needed.
9.6 (Condition 6)
Prior to completion ol'thC outlet tunnel and portal, the IiCCIISCC must file, for Commission approval, an
engineer approved and stamped design for the outflow channel between the outlet portal and Terror
Lake reservoir. The Submission must be approved by the Kodiak National Wildlife Refuge Manager.
The CICSi`11 Sh011ld prOVIdC thC. f011Owlll" 0II1C0111CS: I ) minimi/c Illltlal SCdlmeilt transport and erosion,
2) provide a channel that is stable both laterally and vertically. 3) minimi/e erosion of the lake Shore
and bottom with flows anticipated to (IiSChttl'gC frons) the (1111nC1, and 4) CI1COl11'a-cs ve(yCtatioll within 2
feet of the water's edge adjacent to the chaI1i1CI CloWnstl'cam Of the CXCavated rock -ullN
END OF STIPULATIONS
ROW Permit E•315 -KD
Upixr Bidden Basin Dherston Project (Tenor Lake Hydro)
Kodiak Electric Association
Pace 14 of 14
THIS IS TO CERTIFY that the Permittee hereby accepts the right-of-way Permit described in this
instrument, together with all terms and conditions thereof.
IN WITNESS WHEREOF, I have hereunto d this 1Si day of J L,_�20
Signature
Printed Name:
Title: /'^�S ���,✓ X;,,-%,
ACKNOWLEDGMENT
STATE OF ALASKA )
) ss:
THIRD JUDICIAL DISTRICT )
THIS IS TO CERTIFY that on the 3\ day ofOukk�2017, before me, a Notary Public in and for
the State of Alaska, duly commissioned and sworn as such, personally appeared
YCpn Zco* , whose title is kftbi ImoO who executed the
within instrument on behalf of the company, and who acknowledged to me that the same was signed freely
and voluntarily for the uses and purposes therein stated.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal, the day and year first
written above. CA
r
Notary PVbfic in an or
(SEAL) My commission expires:
REP/,O
r ,`
OJARY
F'UBOCI
F OF P%%y�JU
00 �gS �4
ROW Pennit E -315 -KD
Upper Hidden Basin Di%ersion Project (Terror Lake H)droj
Kodiak Electric Association
Page 15 of 16
The Secretary of the Interior, acting by and through his authorized representative has ex cuted this Permit,
known as E -315 -KD, for the United States of America on this _ day of
Dougla�Campbell
Chief, Division of Realty
U.S. Fish and Wildlife Service, R7
ACKNOWLEDGMENT
STATE OF ALASKA )
) ss:
THIRD JUDICIAL DISTRICT )
THIS IS TO CERTIFY that on thes14 day o 20A, before me, a Notary Public in and for
the State ofA Ska, duly commissioned id sworn as such, personally appeared
known to me to be the Chief, Division of Realty, U.S. Fish and
Wildl e Service, egion 7, who executed the within instrument and who acknowledged to me that the same
was signed freely and voluntarily for the uses and purposes therein stated.
WITNESS my hand and notarial seal the day and year first
-------—----
Notary
—Notary Public
DIA t,) *ANZ
$tits of Alaska
My Commission Expires Jul 4, 2018
ROW Penin 6.315 -KD
Upper Ilidden Basin Dnersion Piojecl (Tenor LaAe H)drol
Kodak Elecuic ASSUUA1011
Page 16 of 16
written in this certificate.
Notary Public in and for Ala�ka
My commission expires:
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STATE OF ALASKA DEPARTMENT OF NATURAL RESOURCES
DIVISION OF MINING, LAND, AND WATER
[ ] Northern Region [x) Southcentral Region [ ] Southeast Region
3700 Airport Way 550 W 7'h Avenue, Suite 900C 400 Willoughby, #400
Fairbanks, AK 99709 Anchorage, AK 99501-3577 Juneau, AK 99801
(907) 451-2705 (PIC) (907) 269-8503 (907) 465-3400
ADL 232213
ENTRY AUTHORIZATION
Upper Hidden Basin Diversion Access Roads
Kodiak Electric Association, Inc. (Grantee) is issued this Entry Authorization In accordance with the Regional
Manager's Decision for ADL 232213 to use portions of the following described state land to construct, survey,
operate, and maintain two access roads. Additional uses of state land may require separate authorization by the
DMLW In accordance with 11 AAC 96.020. Upon completion of the access roads and DMLW approval of an as -built
survey of the proposed easement in accordance with all conditions and stipulations of this authorization, a public
access easement shall be issued to the State of Alaska, Department of Natural Resources, Division of Mining, Land,
and Water.
Meridian
Township
Range
Section(s)
Title
U5 Patent No.
Seward
29 South
23 West
28 and 33
50.84-0436
Seward
30 South
23 West
4, 5, and 8
US Patent No.
50-87-0022
This authorization is subject to compliance with the General and Special Stipulations described in Attachment A,
and is subject to an annual fee of $1,700.00. The Grantee has provided proof of insurance dated March 1, 2017
and a performance guaranty in the amount of $31,800.00, and shall maintain these instruments or their
equivalents for the term of this authorization. This authorization shall expire on March 31, 2022, or as otherwise
specified herein.
This authorization is not valid until signed by an approved DMLW representative.
DMLW representative Title Date
Signature of Grantee or authorized representative Title
Grantee's Address: PO Box 787
Kodiak, AK 99615
Grantee's Phone: (907) 564-7667
Grantee's Email: jrichcreek@kodiak.coop
Page 1 of 8
Entry Authorization — ADL 232213
Date
ATTACHMENT A
ADL 232213
Standard Stipulations
All activities performed under this authorization shall be conducted in accordance with the following stipulations.
Where special stipulations differ from standard stipulations, the special stipulations shall control.
1) Authorized Officer. The Authorized Officer (AD) for the Department of Natural Resources (DNR), Division of
Mining, Land and Water (DMLW), Southcentral Region Office (SCRO) is the Regional Manager. The AO may be
contacted at 550 W. 7th Avenue, Suite 900 C, Anchorage, AK 99501-3577, or (907) 269-8503.
2) Indemnification. Unless specified herein, Grantee assumes all responsibility, risk and liability for all activities
of Grantee, Its employees, agents, Invitees, contractors, subcontractors, or licensees directly or indirectly
conducted in connection with this authorization, including environmental and hazardous substance risks and
liabilities, whether accruing during or after the term of this authorization as stated herein. Grantee shall
defend, indemnify and hold harmless the State of Alaska, Its employees and agents, from and against any and
all suits, claims, actions, losses, costs, penalties and damages of whatever kind or nature, including all
attorney's fees and litigation costs, arising out of, in connection with, or Incident to any act or omission by
Grantee, its employees, agents, invitees, contractors, subcontractors, or licensees, unless the sole proximate
cause of the injury or damage is the negligence or willful misconduct of the State or anyone acting on the
State's behalf. Within 15 days Grantee shall accept any such cause or action or proceeding upon tender by the
State. This indemnification shall survive the termination of the authorization.
3) Valid Existing Rights. This authorization is subject to all valid existing rights in and to the land covered under
this authorization. The State of Alaska makes no representations or warranties, whatsoever, either expressed
or implied, as to the existence, number or nature of such valid existing rights.
4) Reservation of Rights.
a) The DMLW reserves the right to grant additional authorizations to third parties for compatible uses on or
adjacent to the land under this authorization. Authorized concurrent users of State land, their agents,
employees, contractors, subcontractors, and licensees shall not Interfere with the operation or
maintenance activities of each user.
b) The DMLW may require authorized concurrent users of State land to enter into an equitable agreement
regarding concurrent use.
c) The AO reserves the right to modify these stipulations or use additional stipulations as deemed necessary.
Grantee will be notified in writing prior to the Implementation of any change in the terms or conditions
exercised by the AO under this provision. Grantee will be afforded the opportunity to review and
comment regarding the effect of any proposed change to this authorization. Failure of the Grantee to
notify the AO of any change to current officers or addresses shall not be sufficient grounds to invalidate
the AO's compliance with this notification process.
5) Public Trust Doctrine. This authorization is subject to the principles of the public trust doctrine which
guarantees public access to and the right to use navigable and public waters and the land beneath them for
navigation, commerce, Fishing and other purposes. The AO reserves the right. to grant other interests to the
subject area consistent with the public trust doctrine.
6) Alaska Historic Preservation Act. The Grantee shall consult the Alaska Heritage Resources Survey at
cha.ibs@alaska.gov or (907) 269-8723 so known historic, archaeological and paleontological sites may be
Page 2 of 8 IDS
Entry Authorization — ADL 232213 ntee Initials
avoided. The Alaska Historic Preservation Act (AS 41.35.200) prohibits the appropriation, excavation, removal,
injury, or destruction of any State-owned historic, prehistoric (paleontological) or archaeological site without a
permit from the Commissioner. Should any sites be discovered during the course of field operations, activities
that may damage the site will cease and the Office of History and Archaeology in the Division of Parks and
Outdoor Recreation shall be notified immediately at (907) 269-8721.
7) Destruction of Markers. All survey monuments, witness corners, reference monuments, mining claim posts,
bearing trees, National Register of Historic Places plaques, interpretive panels and unsurveyed lease corner
posts shall be protected against damage, destruction, or obliteration. The Grantee shall notify the AO of any
damaged, destroyed, or obliterated markers and shall reestablish the markers at the Grantee's expense in
accordance with accepted survey practices of the DMLW.
8) Compliance with Governmental Requirements: Recovery of Costs. The Grantee or entryperson shall, at its
expense, comply with all applicable laws, ordinances, regulations, rules and orders, and the requirements and
stipulations included in this authorization. Grantee shall ensure compliance by its employees, agents,
contractors, subcontractors, licensees, or invitees.
9) Other Authorizations. The issuance of this authorization does not alleviate the necessity of the Grantee to
obtain all other required authorizations for this activlty. Failure to obtain said authorizations shall constitute a
violation of this authorization, subject to action as described herein.
10) Proper Location. This authorization is for activities on State land managed by the DNR DMLW and does not
authorize any activities on private lands, Federal lands, Native lands, municipal lands or lands which are
owned or managed by other offices and agencies of the State of Alaska and/or the DNR. The Grantee is
responsible for proper location on site,
11) Public Access. The Grantee shall not close landing areas or trails in the vicinity of this authorization. The ability
of all users to use or access State land or public water must not be restricted in any manner.
12) Limits of Access.
a) This authorization applies only to access within the project area, not access to the project area.
b) No additional access trails or roads are allowed on State lands outside the authorized area without the
express permission of the A0.
13) Fire Prevention, Protection and Uabllity. The Grantee and all entrypersons shall take all reasonable
precautions to prevent and suppress forest, structure, brush and grass fires, and shall assume full liability for
any damage to State land and State structures resulting from the negligent use of fire. The State of Alaska is
not liable for damage to the Grantee's personal property and is not responsible for forest fire protection of the
Grantee's activity. To report a wildfire call 911 or 1-800.237-3633.
14) Fuel and Hazardous Substances. No fuel or hazardous substances are to be stored on the subject parcel unless
approved by a special stipulation. Prior written approval from the AO is required for a change in this restriction
and may include additional stipulations.
15) Split Notification.
a) The Grantee or entryperson shall immediately notify the Department of Environmental Conservation
(DEC) by telephone, and immediately afterwards send DEC a written notice by facsimile, hand delivery, or
first class mall, informing DEC of: any unauthorized discharges of oil to water, any discharge of hazardous
Page 3 of 8 ds
EntryAuthorization - ADL 232213 Grantee initials
substances other than oil; and any discharge or cumulative discharge of oil greater than 55 gallons solely
to land and outside an Impermeable containment area. If a discharge, including a cumulative discharge, of
oil is greater than 10 gallons but less than 55 gallons, or a discharge of all greater than 55 gallons is made
to an impermeable secondary containment area, the Grantee or entryperson shall report the discharge
within 48 hours, and immediately afterwards send DEC a written notice by facsimile, hand delivery, or first
class mail. Any discharge of oil greater than one gallon up to 10 gallons, including a cumulative discharge,
solely to land, must be reported in writing on a monthly basis. The posting of information requirements of
18 AAC75,305 shall be met. Scope and Duration of Initial Response Actions (18 AAC 75.310) and reporting
requirements of 18 AAC 75, Article 3 also apply.
The Grantee or entryperson shall supply DEC with all follow-up incident reports, Notification of a
discharge must be made to the nearest DEC Area Response Team during working hours: Anchorage (907)
269-3063, fax (907) 269-7648; Fairbanks (907) 451-2121, fax (907) 451-2362; Juneau (907) 465-5340, fax
(907) 465-2237. The DEC oil spill report number outside normal business hours is (800) 478-9300.
b) The Grantee or entryperson shall immediately notify the AD of any spill or discharge that is reported to
DEC.
c) The Grantee or entryperson shall immediately notify the AO of any pollution or explosion in the project
a rea.
16) Site Maintenance. The area subject to this authorization shall be maintained in a neat, clean and safe
condition, free of any solid waste, debris or litter.
17) Site Disturbance. Unless specified herein:
a) Site disturbance shall be kept to a minimum to protect local habitats. All activities at the site shall be
conducted in a manner that will minimize the disturbance of soil and vegetation and changes in the
character of natural drainage systems.
b) Brush clearing Is allowed, but shall be kept to the minimum necessary to conduct or complete the
authorized activity. Removal or destruction of the vegetative mat outside of the authorized area is not
allowed.
c) Establishment of, or improvements to, tidal, submerged, shoreland or riparian landing areas (e.g.: leveling
the ground, bank cutting or removing or modifying a substantial amount of vegetation) is prohibited
without the prior written consent of the A0.
d) The Grantee shall conduct all operations In a manner which will prevent unwarranted erosion and
siltation. Any such erosion or siltation shall be repaired in a manner satisfactory to the AO at the
Grantee's expense.
18) Waste Disposal. All waste generated during construction activities under this authorization shall be removed
or otherwise disposed of as required by State and Federal law. On-site waste disposal is prohibited, unless
specified herein. "Waste" in this paragraph means all discarded matter, including, but not limited to, human
waste, trash, garbage, litter, oil drums, petroleum, ashes and discarded equipment.
19) Inspections. Authorized representatives of the State of Alaska shall have reasonable access to the subject
parcel for purposes of Inspections. The Grantee may be charged fees under 11 AAC 05.010(a)(7)(M) for routine
inspections of the subject parcel, inspections concerning non-compliance and a final close-out inspection.
20) Request for Data. For purposes of information and review, the DMLW at any time during normal business
hours, may require the Grantee to furnish data related to preconstruction or construction activities
undertaken in connection with the project, The Grantee shall furnish the required data as soon as possible or
as otherwise required under the terms of the authorization.
Page d of
Entry Authorization — AOL 232213 Grantee Initials
21) Changes In Conditions. Unforeseen conditions arising during construction of the project may make it
necessary to revise or amend these stipulations. in this event, the AO and the Grantee will attempt to agree as
to what revision or amendments shall be made. If they are unable to agree, the DMLW Director shall have
final authority to determine those revisions or amendments.
22) Improvements. The Grantee or entryperson must obtain advance written approval from the AO prior to
making any changes or Improvements to the site or thelroperations not already included in this authorization.
23) Fine Tuning. Any changes in the alignment of the project area will require the prior written approval of the
A0. The AO reserves the discretionary authority to require a re -determination of the State's best interest for
any significant proposed changes.
24) Amendment or Modification. To amend or modify the uses allowed under this authorization, the Grantee
shall submit a request in writing to the A0. Any amendment or modification must be approved by the AO and
may require additional fees.
25) Assignment. This authorization may not be transferred or assigned without the prior written consent of the
AO,
26) Change of Address or Officers. Any change of address or authorized officers appointed by the Grantee must
be submitted in writing to the AO.
27) Removal of Improvements and Site Restoration. Upon termination of this authorization, whether by
abandonment, revocation or any other means, the Grantee shall within 30 days remove all improvements
from the area herein granted, except those owned by the State, and the site shall be restored to a condition
acceptable to the AD. Should the Grantee fail or refuse to remove said structures or improvements within the
time allotted, they shall revert to and become the property of the State; however, the Grantee shall not be
relieved of the cost of the removal of the structures, improvements and/or the cost of restoring the area.
28) Violations.
a) Pursuant to it AAC 96.145, a person who violates a provision of an authorization issued under this
chapter (11 AAC 96) is subject to any action available to the DNR for enforcement and remedies, including
immediate revocation of the authorization, civil action for forcible entry and detainer, ejectment,
trespass, damages, and associated costs, or arrest and prosecution for criminal trespass in the second
degree. The DNR may seek damages available under a civil action, including restoration damages,
compensatory damages, and treble damages under AS 09.45.730 or 09.45.735 for violations involving
injuring or removing trees or shrubs, gathering geotechnical data, or taking mineral resources.
b) If a person responsible for an unremedled violation of 11 AAC 96 or a provision of an authorization issued
under this chapter (11 AAC 96) applies for a new authorization from the DNR under AS 38.05.035 or
38.05.850, the DNR may require the applicant to remedy the violation as a condition of the new
authorization, or to begin remediation and provide security under AS 38.05.860 and 11 AAC 96.060 to
complete the remediation before receiving the new authorization. If a person who applies for a new
authorization under AS 38.05.035 or 38.05.850 has previously been responsible for a violation of this
chapter or a provision of an authorization issued under this chapter, whether remedied or unremedied,
that resulted in substantial damage to the environment or to the public, the DNR will consider that
violation in determining the amount of the security to be furnished under AS 38.05.860 and 11 AAC
Page 5 of 8 0
Entry Authorization — ADL 232213 Grantee Initials
96.060 and may require the applicant to furnish three times the security that would otherwise be
required.
Special Stipulations
29) Term. This authorization shall remain valid for a term of 5 years from the effective date of the Regional
Manager's Decision for AOL 232213, expiring on March 31, 2022, unless amended by written decision of the
AO or as otherwise specified herein.
30) Fees. The Grantee shall pay an annual interim land use fee of $50 per acre or fraction thereof, with a $100
minimum, totaling $1,700.00, per 11 AAC 05.010(e)(9) for the term of this EA. If the regulation Is changed
during the term of this authorization, the annual interim land use fee will adjust accordingly.
31) Survey. The Grantee shall submit a DMLW-approved as -built survey on or before the expiration date of this
authorization. The survey must be produced in accordance with survey Instructions provided by the DMLW
Survey Section and stamped by a Professional Land Surveyor registered In the State of Alaska. A final
easement will not be issued until the as -built survey has been approved by DMLW. The Grantee shall contact
the OMLW Survey Section at (907) 269-8521 for detailed as -built survey Instructions and may be charged fees
by the Survey Section in accordance with 11 AAC 05.010 (a)(13), The Grantee is required to submit a
preliminary draft as -built survey prior to the expiration of this authorization to allow adequate time for
DMLW's review and approval of a Final as -built survey.
32) Performance Guaranty, As per it AAC 96.060 and AS 38.05.860, the Grantee is required to submit a bond to
the Department in the amount of $31,800.00 for a performance guaranty and survey deposit. The instrument
will be subject to release upon the remittance of a DMLW-approved as -built survey and fulfillment of all
stipulations and conditions of this authorization. In the event the Grantee fails to comply prior to expiration of
the Entry Authorization, all or part of the bond may be used to cover the State's costs to restore the project
site or survey ADL 232213. Any application for modifications to ADL 232213 may require adjustment of the
bond. The provisions of this authorization shall not prejudice the State's right to obtain remedy under any law
or regulation.
33) Insurance. Insurance Is required during the term of this authorization and is subject to annual review and
adjustment by the Department of Natural Resources. The Department may require a reasonable increase
based on a change in the Grantee's development plan or with increased risk. The insurance policy or policies
must be written by a company or companies on the Division of Insurance's "admitted list" or the "Surplus
Lines Insurance list." The broker/agent must be licensed to do business in the State, and if Surplus Lines
Insurance is provided, the broker must have a surplus broker license. Additional information regarding the
admitted and Surplus Lines Insurance lists may be obtained from the Division of Insurance (1-907-269-7900).
Pursuant to the authorization, the Grantee shall:
a) Consult, as appropriate, with an insurance professional licensed to transact the business of insurance
under Alaska Statute, Title 21, to determine what types and levels of insurance are adequate to protect
the Grantee and the Grantor (the State, its officers, agents, and employees) relative to the liability
exposures of the Grantee's commercial operations.
b) Secure or purchase at Grantee's own expense, and maintain in full force at all times during the term of
the authorization, adequate insurance policies and coverage levels recommended by an insurance
professional, licensed to transact the business of insurance under Alaska Statute, Title 21, and acceptable
Page 6 of 6 4� —
Entry Authorization – ADL 232213 Grantee lndials
to the State of Alaska. The State will expect to see, at a minimum, the following types of coverage:
Commercial General Liability Insurance: The policy shall be written on an "occurrence" form and shall not
be written as a "claims -made" form unless specifically reviewed and agreed to by the Division of Risk
Management, Alaska Department of Administration. Workers' Compensation Insurance: the Grantee
shall provide and maintain, for all its employees, Workers' Compensation Insurance as required by AS
23.30.045. Where applicable, coverage must comply with any other statutory obligations, whether
Federal (i.e. U.S.L. & H or Jones Act) or other state laws in which employees are engaged in work on the
authorized premises. The insurance policy must contain a waiver of subrogation clause In favor of the
State of Alaska.
c) Ensure that the State of Alaska, Department of Natural Resources is listed as an additional named insured
on all liability policies held by the Grantee that provide coverage for liabilities connected to the operations
of the Grantee on or in conjunction with the authorized premises.
d) Provide proof of insurance to the AO on a yearly basis. The certificate must provide for a 30 -day prior
notice to the State of Alaska In the event of cancellation, non -renewal, or material change of conditions.
Failure to furnish satisfactory evidence of Insurance, or lapse of the policy, are material breaches of the
authorization and shall be grounds, at the option of the Grantor, for termination of the authorization.
Generally, the State of Alaska will rely upon the best professional judgment of the licensed Insurance
agent and, at renewal, the agent's annual reassessment of the Insured's right to require additional
coverage if, in its discretion, it determines that it may be warranted. Any changes in the approved
authorization development and operations plan, or the existence of significant claims against the liability
coverage, would warrant examination of the insurance by the State to determine adequacy.
e) in the event the Grantee becomes aware of a claim against any of its liability coverage, the Grantee shall
notify, and provide documentation and full disclosure of the claim to the AO within 20 days.
34) Extension. The AO may approve a written request to extend this authorization if additional time is necessary
to meet its requirements. The written request must certify that there have been no changes to the approved
development pian and be received at least 30 days before the expiration date of this authorization. Additional
fees may be required.
35) Obstruction of Public Access. The Grantee and all entry -persons shall not prevent public access in the
authorization area through physical obstruction, signage, or other means. The ability of all users to access or
use public access easements and rights-of-way shall not be restricted in any manner without the prior written
approval of the A0.
36) Ground Disturbance and Site Reaalr. Grantee will refill holes, trenches and surface depressions resulting from
development or maintenance activities. Surface areas will be recontoured to the satisfaction of the AO so that
they do not pose a threat to human safety or wildlife transit.
37) Maintenance of Infrastructure. The State of Alaska assumes neither responsibility for maintenance of
Infrastructure constructed on State land nor liability for injuries or damages attributable to that infrastructure.
38) Assignment of Existing Terror Lake Hydro (TLH) Authorizations. Prior to the issuance of an easement under
ADL 232213, the Grantee shall ensure that all requirements for DMLW to consider the assignment of existing
TLH authorizations are submitted to SCRO. If SCRO approves the assignments, the Grantee must be in
compliance with all requirements to have the TLH authorizations assigned prior to easement issuance.
Page 7 of 8 V J
Entry Authorizalion — ADL 232213 Grantee Initials
39) Installation of Underground Pipe. Subject to all terms of this authorization, the Grantee may install a portion
of the underground water conveyance pipe as described within the application for ADL 232684 and/or ADC
232556 within the roadway during the construction of ADL 232213, as approved by the AO by letter an April 5,
2017. Operation of the pipe is prohibited unless authorized under ADL 232556 or other appropriate SCRO
authorization. Maintenance of the pipe is authorized for the current term of this EA but will require separate
authorization upon expiration of this EA or Issuance of an easement for ADL 232213. Upon issuance of a
separate SCRO authorization for the pipe, it will no longer be Included under ADL 232213.
Page 8 of 8
Entry Authorization — ADL 232213 Grantee Initials
STATE OF ALASKA DEPARTMENT OF NATURAL RESOURCES
DIVISION OF MINING, LAND AND WATER
[ ] Northern Region [X] Southcentral Region [ ] Southeast Region
3700 Airport Way 550 W 7th Avenue, Ste 900C 400 Willoughby, #400
Fairbanks, AK 99709 Anchorage, AK 99501-3577 Juneau, AK 99801
(907) 451-2705 (907) 269-8552 (907) 465-3400
Entry Authorization
AS 38.05.810(e)
Lease No. ADL 232556
Kodiak Electric Association, Inc., PO Box 787 Kodiak, AK 99615, herein known as the Lessee, is issued this Entry
Authorization (EA) to use 20 acres, more or less, of State-owned land located within:
Sections 5, 6, and 8 of Township 30 South, Range 23 West, Seward Meridian.
East of Terror Lake on Kodiak Island.
This prelease authorization is effective beginning March 1, 2018, and ending February 28, 2021 unless sooner
terminated at the State's discretion. This EA is not valid until it has been executed by the Division of Mining, Land
and Water (DMLW), Southcentrai Regional Office (SCRO).
This EA is issued for the purpose of authorizing:
The Lessee's temporary entry onto State land for the construction and use of a water conveyance system in accordance
with the approved Development Plan (Attachment A) while the Lessee completes the required survey and appraisal
requirements before lease issuance.
All activities authorized under the EA shall be conducted in accordance with the following stipulations:
Authorized Officer (AO): The Authorized Officer (AO) for this approval is the Regional Manager of SCRO.
The AO may designate a representative to administer specific portions of this authorization. The AO has the
authority to suspend all or any construction, operation, or maintenance activities suspected to be in violation of
this authorization. Written notification of EA violations will be sent to the address on record. If corrective action
is not taken within the allotted timeframe specified in the notification, the EA may be terminated. The AO has
the right, but not the obligation, to undertake corrective action at the expense of the Lessee by moving against the
performance bond, when such action is necessitated by neglect on the part of the Lessee to take corrective action.
2. Compliance with Requirements: The Lessee shall observe all Federal, State, and local laws and regulations
applicable to the authorized area, including regulations for the protection of fish and wildlife, and shall keep the
premises in a neat, orderly, and sanitary condition. The issuance of this EA does not relieve the Lessee from
securing any other authorizations required by Federal, State, or local law.
This authorization is revocable upon violation of any of its terms, conditions, or stipulations. Failure to comply
or meet the terms and conditions of this EA could impede the ability of the Lessee to seek subsequent
authorizations, including the pending lease for this site.
3. Site Development and Operation Plan: The Lessee is bound to the approved Development Plan (DP) for this
site. Use of the area for purposes other than those specified constitutes a breach of the EA and may result in
revocation. Failure to utilize and develop the site in accordance with the approved DP shall constitute a violation
Eolry Authorization
ADL 232556
Page I of 20
of the authorization and is grounds for termination. Use of the site for illegal activities is also grounds for
termination.
4. Modifications to Development Plan: Any proposed changes to the approved DP must be submitted in writing
to the AO for approval prior to construction or implementation of new activities. The AO reserves the right to
reevaluate the EA compensation and other terms and conditions of the authorization based upon the proposed
modifications. Depending upon the extent of the modifications, a new survey and/or appraisal may be required
at the Lessee's expense. No changes are allowed unless specifically authorized in writing by the AO.
5. Annual Fee: In accordance with I 1 AAC 58.410 and for the purpose of this EA, the annual fee will be $1,000.00,
which is due on or before the 11t day of March of every year during the term of this authorization. Payment for
the first year of the EA, and any other fees owed, shall be required prior to issuance of the authorization. A late
payment penalty of either the fee specified in I 1 AAC 05.010 or interest at the rate set by AS 45.45.010(a),
whichever is greater, will be assessed on a past -due account until payment is received by the State.
6. Returned Check Penalty: A returned check fee as provided in 11 AAC 05.010 will be assessed for any check
on which the bank refuses payment. Late payment penalties shall continue to accumulate.
7. Failure to Pay: Failure to pay annual fees when due is a default of the terms and conditions of this EA. Failure
to cure such a default within the 60 -day period following the receipt of a "Notice of Default" will, at the AO's
discretion, result in termination of this authorization.
8. Proper Location: Issuance of this EA is for authorization on State land only and does not authorize any activities
on private or other non -State lands. The Lessee is responsible for the accurate location of all preconstruction and
construction activities within the authorized area.
9. Survey Monuments: The Lessee shall protect all survey monuments, witness corners, reference monuments,
mining claim posts, and bearing trees against damage, destruction, or obliteration. The Lessee shall notify the
AO of any damaged, destroyed, or obliterated markers and shall re-establish the markers in accordance with
accepted survey practices of the Department of Natural Resources (DNR).
10. Survey: The Lessee is responsible for completing an Alaska State Land Survey (ASLS) of the proposed lease
site. The survey must be submitted to DMLW's Survey Section for annroval no later than one year after
issuance of the survey instructions. Failure to do so will cause the forfeiture of the performance guaranty as
outlined in the Penalties stipulation listed below. The survey must properly locate the lease boundaries, all
infrastructure, and easements. If the submitted survey is accepted by DMLW, the measurements identified will
be used to accurately calculate the total acreage.
11. Appraisal: The Lessee is responsible for obtaining and submitting the required Fair Market Value appraisal for
this site. Once the survey has been submitted to DMLW for review, please contact DMLW's Appraisal Unit at
(907) 269-8512 to begin the appraisal process. The final appraisal report must be submitted to DMLW for
approval no later than February 28, 2021. Should the appraisal indicate that the EA annual fee is less than
estimated, those overages will be credited to the lease site's account. Should the report indicate that the
value of the land is greater than anticipated, the shortfall must be remedied before the lease will be issued.
12. Performance Guaranty: As per l l AAC 96.060 the following bonds are required:
• $30,000.00 EA Cash Bond: This bond will serve as a default penalty to be forfeited, either in whole or in part,
by the timeframe established under this EA if the Lessee has not completed all requirements outlined in this
authorization. This includes, but is not limited to; survey, appraisal, payment of fees, submittal of required
information, or failing to return the signed lease contract.
• $500,000.00 Performance Guaranty (Cush, CD, or Surety): This bond shall remain in place throughout
the life of this EA and the subsequent lease (if granted) to ensure the Lessee's compliance with the terms and
conditions of both authorizations. Should the Lessee fail to abide by the terms of this EA, this bond may be
used by the AO to pay for any corrective actions the AO deems necessary.
Entry Authorization
AUL 232556
Page 2 of 20
o Failure by the Lessee to provide replacement security for a CD or surety upon notice of nonrenewal
shall be grounds for the AO to make a claim upon the existing security to protect the State's interests.
o The Performance Guaranty amounts are subject to periodic adjustments (every 5 years) and may be
adjusted upon approval of any amendments, assignments, modifications to the DP, and as a result
of any violations of this authorization.
o If a bond is taken as part of a penalty, either whole or in part, that bond must be replenished by the
replacement deadline contained within the penalty notification letter. Failure to replace the bond is,
at the discretion of the AO, grounds for termination of the EA and possible denial of the subsequent
lease.
o The EA Cash Bond will be released upon completion of all conditions of the EA, including lease
issuance.
o The Performance Guaranty will be released upon expiration or closure of the lease provided that all
terms and conditions of the lease have been met, including removal of infrastructure and restoration
of the area to the satisfaction of the AO.
13. EA Penalties: The $30,000.00 EA cash bond submitted under the Performance Guaranty stipulation above will serve
as a default penalty to ensure the Lessee's adherence to the timeframes established in this authorization. When
assessing a penalty, the AO shall make allowances for circumstances which are beyond the ability of the Lessee to
control. Such allowances do not include delays which were caused by the Lessee. Once the Lessee has fulfilled all
obligations of the EA, the EA cash bond will be released.
EA penalties will be levied per the following schedule:
a) Survey Submittal: In the event the required survey is not submitted to DMLW for review within one
year of the Survey Instruction issuance, the Lessee shall forfeit $10,000.00 of the EA cash bond.
b) Survey Approval: In the event the required survey is not approved by DMLW before the expiration date of
this authorization, the Lessee shall forfeit $10,000.00 of the EA cash bond. Exceptions will be made if
DMLW is the cause of the delay.
c) Appraisal: In the event the required appraisal is not approved by DMLW before the expiration date of
this authorization, the Lessee shall forfeit the $10,000.00 of the EA cash bond. Exceptions will be made if
DMLW is the cause of the delay.
14. Indemnification: The Lessee shall indemnify, defend, and hold the State harmless from and against all claims,
demands, judgments, damages, liabilities, penalties, and costs, including attorney's fees, for loss or damage,
including but not limited to property damage, personal injury, wrongful death, and wage, employment, or worker's
compensation claims, arising out of or in connection with the use or occupancy of the authorized site by the Lessee
or by any other person holding under the Lessee, or at the Lessee's sufferance or invitation; and from any accident
or fire on the site; and from any nuisance made or suffered on the site; and from any failure by the Lessee to keep
the site in a safe and lawful condition consistent with applicable laws, regulations, ordinances, or orders; and from
any assignment, sublease, or conveyance, attempted or successful, by the Lessee of all or any portion of the site or
interest therein contrary to the covenants and conditions of this EA. The Lessee holds all goods, materials, furniture,
fixtures, equipment, machinery, and other property whatsoever on the parcel at the sole risk of the Lessee, and shall
defend, indemnify and hold the State harmless from any claim of loss or damage by any cause whatsoever, including
claims by third parties.
15. Insurance: DMLW requires the Lessee to carry liability insurance with the State of Alaska listed as an additional
"NAMED" insured party. Case number ADL 232556 is to be referenced on the policy and the certificate of
Entry Authorization
ADt. 232556
Page 3 of 20
insurance. The insurance policy(s) must be written by one (or more) companies on the Division of Insurance's
"Admitted" or the "Surplus Lines" insurance list. The broker/agent must be licensed to do business in the State,
and, if surplus line insurance is provided, the broker must have a surplus broker license. Additional information
regarding the Admitted and Surplus Line lists may be obtained from the Division of Insurance (907) 269-7900.
Pursuant to this authorization the Lessee shall:
a) Consult, as appropriate, with an insurance professional licensed to do business under Alaska Statute Title
21, to determine what types and levels of insurance are adequate to protect the Lessee and the State
relative to the liability exposures of the Lessee's commercial operations. The AO reserves the right to
require additional coverage in order to protect the State's interests. Additionally, insurance amounts are
subject to annual review and adjustment by the AO based upon changes in the Lessee's approved DP or
with increased risk.
b) Secure or purchase at Lessee's own expense, and maintain in full force at all times during the term of the
EA, adequate insurance policies and coverage levels which have been approved by the AO. The State
will expect to see, at a minimum, the following types of coverage:
• Commercial General Liability Insurance: The policy shall be written on an `occurrence" form
and shall not be written as a "claims -made" form unless specifically reviewed and agreed to by the
Division of Risk Management, Department of Administration.
• Workers' Compensation Insurance: The Lessee shall provide and maintain, for all its employees,
Workers' Compensation Insurance as required by AS 23.30.045. Where applicable, coverage must
comply with any other statutory obligations, whether Federal (e.g., U.S.L. & H. or Jones Act) or
other State laws in which employees are engaged in work on the authorized premises. The insurance
policy must contain a waiver of subrogation clause in favor of the State of Alaska.
c) Provide proof of insurance to the AO on a yearly basis. The certificate must provide for a 30 -day prior
notice to the State in the event of cancellation, nonrenewal or material change of conditions.
d) In the event the Lessee becomes aware of a claim against any of its liability coverage, the Lessee shall
notify and provide full disclosure of the claim to the AO within 20 days.
16. Incurred Expenses: All expenses incurred by the Lessee connected with this authorization shall be borne solely
by the Lessee and the State shall in no way be held liable for said expenses.
17. Loss of Improvements: The Lessee assumes all risk of loss of improvements resulting from natural or
catastrophic events.
18. Request for Data/Additional Information: For purposes of information and review, the AO may require the
Lessee to furnish data related to preconstruction, construction, and operation activities authorized under this EA.
The Lessee shall furnish the required data as soon as possible.
19. Inspections: The AO may designate representatives and other personnel to inspect the permitted area at any
time. Noncompliance determinations will subject the site to reinspection, for which the Lessee may be assessed,
at the AO's discretion, either a fee of $100 or a fee equal to the actual expenses incurred by DMLW (I1 AAC
05.010).
20. Historic Preservation: The Alaska Historic Preservation Act (AS 41.35.200) prohibits the appropriation,
excavation, removal, injury, or destruction of any State-owned historic, prehistoric, archaeological, or
paleontological site without a permit from the Commissioner of DNR. Should any sites be discovered during the
course of field operations, activities that may cause damage will cease and the Office of History and Archaeology
within the Division of Parks and Recreation must be contacted at (907) 269-8721.
21. Public Access: Neither the construction or the use of this project shall interfere with free public use of
unencumbered State land. If a specific activity poses a safety concern, the AO may authorize a temporary closure
Entry Authorization
ADL 232556
Page 4 of 20
of public access routes near the vicinity of the project area for a specific period of time. The Lessee is required
to contact the AO in advance for approval to close public access routes. No closures are authorized unless
specifically done so in writing by the AO.
This EA is subject to the followine public access easement reservations:
a) Easement ADL 232213.
22, Concurrent Use: The AO reserves the right to grant additional authorizations to third parties for reasonable
compatible uses on or adjacent to the land covered under this EA, atter due process. Authorized concurrent users
of State land, their agents, employees, contractors, subcontractors, and licensees shall not interfere with the
operation or maintenance activities of other authorized concurrent users.
23. Environmental Impacts: The Lessee shall take all reasonable precautions to prevent damage to State land,
including, but not limited to, the following:
a) Site Disturbances: Site disturbances shall be kept to a minimum to protect local habitats. All activities
shall be conducted in a manner that will minimize the disturbance of soil and vegetation, and changes in
the character of natural drainage systems. Any ground disturbances that may occur shall be contoured
to blend with the natural topography for human and wildlife health and safety. Waterbodies shall be
protected from human -caused pollution, erosion, and changes in sedimentation patterns.
b) Brush Clearing: Brush clearing is allowed in accordance with the approved DP.
c) Timber Use: The Lessee shall not cut standing timber within the authorized area unless specifically
allowed in the DP. Any additional cutting located on general State land is managed by the Division of
Forestry, and any use of those trees must be approved by them.
d) Fire Prevention: The Lessee shall take all reasonable precautions to prevent and suppress forest, brush,
and grass fires, and shall assume full liability for any damages to State land resulting from the negligent
use of fire. DNR does not assume any responsibility for protecting improvements or personal property
from fires.
e) Wildlife Mitigation: The Lessee shall be advised to avoid construction until after June I" each season in
order to avoid disturbances to denning brown bears. The Lessee shall be advised to coordinate with the
Alaska Department of Fish and Game to mitigate potential disturbances to brown bears.
24. Use and Storage of Hazardous Materials/Substances (other than fuel):
a) Use of herbicides and pesticides by the Lessee is prohibited without prior written approval from the AO.
b) No permanent storage of hazardous materials/substances is authorized within the project area without
prior written approval from the AO.
c) The use of hazardous materials/substances must be done in accordance with existing Federal, State, and
local laws.
d) Any hazardous materials/substances which are used on site and not approved for permanent storage
(including petroleum products, oils, and lubricants) must be removed from the site in a timely manner
and disposed of or managed in accordance with State, Federal, and local laws.
e) Debris (such as soil) contaminated with motor oil, solvents, or other chemicals may be classified as a
hazardous substance and must be removed from the site and managed or disposed of in accordance with
State, Federal, and local laws.
Entry Authorization
ADL 232556
Page 5 of 20
25. Use and Storage of Fuel: All fuel storage container(s) with a total combined capacity larger than 55 gallons shall
not be placed within 100 feet from the high or ordinary water mark of any waterbody. When fuel storage
container(s) exceed a total combined capacity of 110 gallons, the containers must be stored within a double -
walled tank, an impermeable diked area, or a portable impermeable containment structure capable of containing
1 10% of the capacity of the largest independent container. All containers must be approved by the Department of
Environmental Conservation (DEC) and clearly marked with the contents and the Lessee's name and
authorization number. Drip pans and other spill response materials, such as sorbent pads, must be on hand to
contain and clean up any spills.
26. Spill Response: The Lessee is responsible for preventing fuel spills, hydraulic fluid spills, and oil spills that
could result in contamination of contiguous land and water. Petroleum product spills shall be cleaned up
immediately, and any contaminated earth or vegetative materials shall be disposed of as required by DEC
regulations. To facilitate rapid spill response, adequate sorbent materials (i.e., material that collects or absorbs
petroleum products while at the same time repels water) will be kept onsite to be used in the event a spill should
occur. Should any unlawful discharge, leakage, spillage, emission, or pollution of any type occur due to Lessee
activities, the Lessee shall, at their expense, be obligated to clean the area to the reasonable satisfaction of the
State.
27. Spill Notification: The Lessee is responsible for notifying the State of any pollutants which are discharged,
released, or spilled in or around the project area by contacting the DMLW's Hazardous Materials Coordinator
at (907) 269-8552 and the DEC Southcentral Area Response Team Office at (907) 269-3063 during business
hours, or the DEC Spill Hotline at (800) 478-9300 after business hours, for the following situations:
A. Oil/Petroleum Releases:
• To Water:
o Any release of oil to water must be reported as soon as the Lessee has knowledge of
the discharge.
To Land:
o Release(s) of oil in excess of 55alg lons must be reported as soon as the Lessee has
knowledge of the discharge.
o Release(s) of oil between 10 and 55 gallons must be reported within 48 hours after
the Lessee has knowledge of the discharge.
o The Lessee is responsible for providing, on a monthly basis, a written record of any
discharge of oil between 1 to 10 gallons.
• Within impermeable secondary containment areas:
o Any release of oil in excess of 55alg lons must be reported within 48 hours after the
Lessee has knowledge of the discharge.
B. Hazardous Substance Releases:
• Release(s) of all hazardous substances (other than petroleum products) in any amount must be
reported as soon as the Lessee has knowledge of the discharge.
The Lessee is responsible for following all timelines, and submitting all required information as outlined in 18
AAC 75.300 and other applicable spill regulations under Article 3.
28. Waste and Debris Disposal: Onsite refuse disposal is prohibited. All waste generated during construction,
operation, and termination activities under this EA shall be removed and disposed of at an offsite DEC -approved
disposal facility. Until the waste can be removed from the site, it must be stored in a manner to prevent attracting
wildlife.
29. Lease Issuance: Upon completion and fulfillment of all conditions and stipulations of this EA a lease will be
issued to the Lessee for a land lease containing approximately 20 acres, more or less.
Entry Authorization
ADL 232556
Page 6 of 20
30. Termination: Should this EA be terminated for due cause, and the subsequent lease denied, the Lessee will be
subject to the stipulations contained within AS 35.08.090 for removal or reversion of improvements upon
termination of the lease.
Definitions:
a) "AO" means the Authorized Officer, who is the Regional Manager, Southcentral Region
b) "DEC" means the Alaska Department of Environmental Conservation
c) "DMLW" means the Division of Mining, Land and Water
d) "DNR" means the Alaska Department of Natural Resources
e) "DP" means the approved Development Plan
f) "EA" means this Entry Authorization
g) "Lessee" means Kodiak Electric Association, Inc. or their officers, agents, contractors, subcontractors, and
their employees.
h) "SCRO" means the Southcentral Region Office
Signature page follows:
Entry Authorization
ADL 232556
Page 7 of 20
Any correspondence concerning this EA may be directed to the Department of Natural Resources, Division of Mining,
Land and Water, Southcentral Regional Office, 550 W. 7°1 Ave., Suite 900C, Anchorage, AK 99501-3577, or by
telephone to (907) 269-8503. All correspondence sent by the Division of Mining, Land and Water (DMLW),
Southcentral Regional Office (SCRO) in regards to this authorization will be sent to the below listed contact
information.
1, the Lessee, have read the foregoing EA and I agree to comply with all the conditions included within this
Signature of Lessee or Authorized Representative
Printed Name and Title
/y Zwr r�7
Lessee's Address
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City State Zip
Phone Numbers: Home:
Signature
Work:
Fax:
Email:
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Entry Authorization
ADL 232556
Page 8 of 20
Attachment A
Development Plan
Kodiak Electric Association, Inc.
Terror Lake Hydroelectric Project, FERC License No. 2743
Upper Hidden Basin Diversion - Site Development Plan
July 19, 2016
The scope of proposed activities to be conducted within the requested land lease area includes
construction, operation and maintenance of a water conveyance system. The purpose of all
activity and improvements within this land lease is for Kodiak Electric Association, Inc. (KEA) to
supply renewably -generated electricity to the communities of Kodiak.
KEA is a rural electric cooperative that provides electricity to approximately 5,900 meters on
Kodiak Island, Alaska in a service area that includes the region in and around the City of Kodiak,
the US Coast Guard Base, Bells Flats, Chiniak, Pasagshak, and Port Lions. KEA is a not-for-profit
501(c)(12) cooperative organized under AS 10.25 for the purpose of supplying electric energy
and power to its members, and qualifies for a non-competitive lease under AS 38.05.810(f).
Hydropower generated by the Terror Lake Hydroelectric Project is KEA's primary energy source.
Enhancing water availability to Terror Lake with a new water diversion allows KEA's future
electrical load growth to be continually powered with renewable energy. The proposed Upper
Hidden Basin Diversion (UHBD) would supplement the available energy resources for the Terror
Lake Hydroelectric Project by conveying water from the upper reaches of the Hidden Basin
watershed to the existing Terror Lake reservoir. Once the supplementary water from the UHBD
flows into the Terror Lake reservoir, more renewable hydropower can be generated from the
existing Terror Lake Hydroelectric Project and fed directly into the KEA grid. KEA's existing
powerhouse and electrical grid infrastructure is able to deliver the additional power to the
Kodiak community without any modifications.
The existing Terror Lake reservoir is located in the remote north central area of Kodiak Island,
approximately 30 miles southwest of the City of Kodiak. The proposed UHBD project area is
located east of the Terror Lake reservoir on the other side of a mountain ridge. This mountain
ridge between Terror Lake and the Upper Hidden Basin watershed serves as the boundary for
Federal and State land. The Terror Lake reservoir is on Kodiak National Wildlife Refuge lands,
and the proposed diversion project is on State lands. Public use of the area is extremely
minimal.
Attached is a conceptual layout of the proposed UHBD. It is a basic, non-mechanical
conveyance of water, with spur road accessibility. Site development would consists of 4 miles
of a pioneer gravel road connecting the existing Terror Lake Hydroelectric Project access road
to two small dam embankments. The eastern dam embankment (D -East) would convey water
to the western dam embankment (D -West) through a buried 0.4 mile pipe. From the D -West
location, the water would be conveyed to the existing Terror Lake reservoir through a 1.2 mile
subterranean tunnel running underneath the mountain ridge.
Entry Authorization
Attachment A - Development Plan
ADL 232556
Page 9 of 20
Attachment A
Development Plan
The majority of the proposed UHBD area is located on lands owned by the State of Alaska,
managed by the DNR. Approximately 140 acres would encompass a new access road that
would connect the existing Project access road to the proposed UHBD site for construction, and
subsequent inspection and maintenance. Approximately 15 acres would encompass the two
diversion dam structures, and approximately five acres would encompass a subterranean
tunnel that would connect the UHBD dams to the federal land boundary. The access road,
conveyance pipe, and tunnel will be authorized under DNR easement ADL 232213, and the two
diversion dam structures will be authorized under a separate DNR land lease. As requested by
DNR staff, KEA herein files the land lease application accordingly.
The D -West site is located at 57° 35'48" North, 153' 00' 44" West. The D -East site is located at
57° 35' 36" North, 152' 59' 56" West. The UHBD straddles the edges of USGS Quadrangle Maps
Kodiak C-3 and C-4. A merged version of both USGS maps (scale of 1: 1:63,360) is provided to
show the D -West and D -East sites. The exact size and location of the land lease parcels are
approximate at this stage of project development.
Attached are photographs of the proposed land lease area. This mountainous terrain is
typically inundated with snow from October to June. Ground cover ranges from bare bedrock
and unconsolidated colluvium to palustrine emergent wetlands and scrub shrub. There are no
trees in this upland, alpine area. Access to this remote site is currently provided by helicopter,
or by backcountry hiking from the existing Terror Lake Hydroelectric Project access road. The
existing Terror Lake Hydroelectric Project access road is a remote roadway used exclusively for
KEA's official use for the operation and maintenance of the existing Terror Lake Hydroelectric
Project, and it is accessible only by floatplane, boat, or helicopter. Attached is a photograph of
the existing Terror Lake Hydroelectric Project access road and the area where the new diversion
access road would be sited under requested easement ADL 232213.
This project is currently in the development phase. To assess the quantity of water available for
diversion, KEA is collecting stream gauging data in this watershed as authorized by Land Use
Permit LAS 29042, and is collecting geological information at the D -West and D -East sites as
authorized by Land Use Permit LAS 30964. The temporary water use permit for the
construction of UHBD under TWUA J2016-01 is secured. Water rights for the as -built operation
of UHBD have been assigned water rights appropriation LAS 30459.
The final engineering design for the temporary and permanent structures, the exact
construction methods, and defined inventory of construction equipment needed to build the
road, diversion dams, conveyance pipe and tunnel are not yet determined. It is KEA's intent to
finalize the engineering design in 2017, initiate construction of the diversion dams in 2018, and
operate the new diversion by 2020. The as -built UHBD will not generate, use, store, transport,
dispose of or otherwise come in contact with toxic and/or hazardous materials. The as -built
diversion will not involve any storage tanks, either above or below ground. There would be no
machinery left on site when construction activities are complete.
Entry Authorization
Attachment A - Development Plan
ADL 232556
Page 10 of 20
Attachment A
Development Plan
The Terror Lake Hydroelectric Project is a federally licensed hydropower facility as Federal
Energy Regulatory Commission (FERC) Project No. 2743. Adding the UHBD to the Terror Lake
Hydroelectric Project requires a FERC License Amendment, which is a formal process of
coordinated multi -agency consultation and public scoping. Through this multi-year FERC
License Amendment process, KEA has been working with stakeholders to develop project -
specific plans and measures that minimize potential impacts. The final FERC License
Amendment Application was filed on May 26, 2016.
Entry Authorization
Attachment A - Development Plan
ADL 232556
Page I I of 20
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Development Plan
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Attachment &- Development Plan
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Attachment A
Development Plan
Entry Authorization
Attachment A - Development Plan
ADL 232556
Page 14 of 20
Attachment A
Development Plan
Entry Authorization
Attachment A - Development Plan
ADL 232556
Page 15 of 20
Attachment A
Development Plan
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.,Pr 'ectl : NAD 1963 SlateP ai eAleaka FI S 5005 eet _, Scale: 1:1,267,200
Laches & KODIAK ELECTRIC ASSOCIATION, INC SITE LOCATION
Assadates UPPER HIDDEN BASIN DIVERSION PROJECT
�a xu+�xo x+nixa conxr TERROR LAKE MAP
PROJECT NO. 14366009.00 FIGURE 1
Entry Authorization
Attachment A - Development Plan
ADL 232556
Page 16 of 20
ALASKA
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.,Pr 'ectl : NAD 1963 SlateP ai eAleaka FI S 5005 eet _, Scale: 1:1,267,200
Laches & KODIAK ELECTRIC ASSOCIATION, INC SITE LOCATION
Assadates UPPER HIDDEN BASIN DIVERSION PROJECT
�a xu+�xo x+nixa conxr TERROR LAKE MAP
PROJECT NO. 14366009.00 FIGURE 1
Entry Authorization
Attachment A - Development Plan
ADL 232556
Page 16 of 20
Attachment A
Development Plan
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Entry Authorization
Attachment A - Development Plan
ADI, 232556
Page 17 of 20
Attachment A
Development Plan
Kodiak Electric Association, Inc.
Terror Lake Hydroelectric Project, FERC No. 2743
Upper Hidden Basin Diversion — Application for Land Lease
D -West Site in Winter
D -West Site in Summer
Entry Authorization
Attachment A - Development Plan
AD1. 232556
Page 18 of 20
Attachment A
Development Plan
Kodiak Electric Association, Inc.
Terror Lake Hydroelectric Project, FERC No. 2743
Upper Hidden Basin Diversion — Application for Land Lease
D -East Site in Summer
Entry Authorization
Attachment A - Development Plan
ADL 232556
Page 19 of 20
Attachment A
Development Plan
Kodiak Electric Association, Inc.
Terror Lake Hydroelectric Project, FERC No. 2743
Upper Hidden Basin Diversion —Application for Land Lease
Terror Lake Hydroelectric Project, Exisiting Access Road
Entry Authorization
Attachment A - Development Plan
ADL 232556
Page 20 of 20
STATE OF ALASKA DEPARTMENT OF NATURAL RESOURCES
DIVISION OF MINING, LAND AND WATER
[ ] Northern Region ( ] Southcentral Region [ ] Southeast Region
3700 Airport Way 550 W 71h Avenue, Ste 900C P.O. Box 111020
Fairbanks, AK 99709 Anchorage, AK 99501-3577
(907) 451-2705 (807) 289-8552 400 Willoughby, #400
Juneau, AK 99801
(907) 465-3400
LAND USE PERFORMANCE GUARANTY
PERSONAL OR BUSINESS
(not corporate surety)
Contract, Permit, or Lease —State File MIDI, 2V'55(p
Kodiak Electric Association Inc Bond Type and # C4) 441111Q.3
I/We the undersigned as, Principal,
whose address is 1614 Mill Bay Rd Kodiak AK 99615 and doing
business as __X0diak-0ectric A=aiatiop4nr
am/are held and firmly bound unto the State of Alaska, Department of Natural Resources, in the sum of
Thirty Thousand DOLLARS, ($ 30,000.00 ) lawful money of the United States,
I'or the use and benefit of the state. For the payment of such sum we hereby jointly and severally bind ourselves, our heirs, executors,
administrators, successors, and assigns by this bond.
The Principal hereby pledges as security a Time Account 7757238840 (type and account # of security)
deposited with Wells Fargo Bank N.A. 202 Marine Way Kodiak AK 99615 (name and
address of financial institution, trustee or State of Alaska designated office). The Principal does hereby irrevocably constitute and
appoint the State of Alaska by and through its duly authorized agents as it's Attorney -in -Fact to do all things necessary and appropriate
to fulfill the obligations of the Principal should the Principal default on the agreement listed above. It is agreed and understood that
this bond shall remain in full force and effect for the period of time provided by law, and until released by the state for actions against
this Performance guarantee.
THE OBLIGATIONS of this Performance Guaranty are as follows:
I. The Principal is by written agreement entering into a contract, ermit, or lease with the State of Alaska ("the State") involving
State land, such agreement is identified as /}P1• of 3�rj-Jy (Stare file 11), that is by reference, incorporated tally
herein in all its terms and made a part of this Performance Guaranty.
2. In accordance with State regulations at I 1 AAC 96,060, the Alaska Department of Natural Resources ("the department') has
determined that the Principal is required to furnish the State of Alaska an individual Performance Guaranty, acceptable to the
department and conditioned upon compliance with all terms of the agreement.
3. The Principal has chosen to post this individual Performance Guaranty with the department as a guarantee that (lie obligations,
terms, and conditions of the agreement will be completed as required by the Alaska Land Act, AS 38.05, and attendant
regulations at I 1 AAC 96.
4. The coverage of this Performance Guaranty extends to the Principal's obligations under the agreement and under applicable laws
and regulations, to assure that all of (lie activities on and uses of the land subject to the agreement are conducted by the Principal
in compliance with the obligations, terms, and conditions of the agreement.
5. Upon a determination by the State that the Principal has satisfactorily complied with the obligations, terms and conditions of the
agreement pertaining to activities on and uses of the land, and the applicable laws and regulations, then the obligations of this
Performance Guaranty shall be released; otherwise, this Performance Guaranty shall remain in full force and effect until
exercised or released in writing by the State.
6. The Principal agrees that:
(a) unless the Principal has replaced this Performance Guaranty with other guaranty acceptable to the department conditioned
upon compliance with all terms of the agreement, coverage under this Performance Guaranty shall extend to and include
any extension(s) in time of the agreement, such coverage to continue irrespective of the expiration of the obligations, terms,
and conditions originally set forth in the agreement; the Principle and Financial Institution (if applicable) shall not cancel
this Performance Guaranty unless released in writing by the State;
102-1173 (Rev. 05111) Pagc I oft
(b) notwithstanding any modifications of the agreement approved by the department, this Performance Guaranty remains in full
force and the Principle and Financial Institution (if applicable) waive, as a defense against the State, any right to notice of
any such modifications;
(c) The department shall review this Performance Guaranty from time to time and may require an adjustment in the amount of
the Performance Guaranty. No increase in Performance Guaranty amount shall bind the Principle without the Principle's
written consent;
(d) the neglect or forbearance of the State in enforcing against the Principal, performance by the Principal of any obligation,
term, or condition of the agreement shall not in any way release the Principal from liability under this Performance
Guaranty;
(e) whenever the Principal shall be, and is declared by the State to be, in default under the obligations, terms, and conditions of
the agreement, the State shall notify the Principal. Upon receipt of a notice of the Principal's default from the State and
demand by the State for performance or payment, the State shall promptly move to collect face value of the Performance
Guaranty by executing the negotiable instrument or liquidating funds or securities provided, or in lieu of paying the face
amount, the director may approve the Principle's remedy of the default by the Principle fully completing the performance of
the Principal`s obligations under the agreement. The Principle's completion of the performance obligations under the
agreement does not relieve the Principal of their other obligations under the agreement;
(Copy. fill -out, and attach the below il'more signatures are necessarvi
PRINCIPAL
Signed and executed this 16 '+� day of A10MUOL( _ , 20
BY: �_Ayi2` —Q - %.I Ylance L 1Tl�
Print mmne) Title
i(,1J4 mill 12d KndAalc 4K g9�Ot5
— �Vw._ -- (Address of Principal)
(Signature of Principal)
FINANCIAL INSTITUTI.ION (If applicable)
Signed and eZecuted this fV day of ltanuaf� 20
ayhty gj
BY: SO
(Pnnne) : (Title) (St1e)
'K20a dak 7��tCQ5'
(Ad ss
SJ G ot —
of Financial Institution)
By:
(11gWrfullf of Finan I Representative)
ACKNOWLEDGEMENT OF FINANCIAL INSTITUTION
The foregoigg instrument was ach owledged before me byYA
r t
T IMI MOs CSW Q 11 this ; b day of Ll�i� UA I ) 20_
(Name of Individual)
wiotSw�k{op and official seal
v. QG,�ii��' �tgfnfuireo aiyPublic)
•" •�,Ji� : My Commission Expires:
..........
Ni
A1161..\G 3 � _
�'P;�soNP.P�S; ` PPR VAD Al�{„D ACCEPTANCE BY THE STATE OF ALASKA
g DEPARTMENT OF NATURAL RESOURCES
By:
State Representative Title Date
Bond Type and i ,
102-1173 (Rev. 05/11) Page 2 of 2
State File #
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STATE OF ALASKA DEPARTMENT OF NATURAL RESOURCES
DIVISION OF MINING, I,AND AND WATER
[ ] Northern Region [X] Southcentral Region [ ] Southeast Region
3700 Airport Way 550W7 1h Avenue, Ste 900 P.O. Box 111020
Fairbanks, AK 99709 Anchorage, AK 99501-3577 400 Willoughby, #400
(907) 451-2705 (907) 269-8552 Juneau, AK 99801
(907) 465-3400
LAND USE PERFORMANCE GUARANTY
(CORPORATE SURETY)
Contract, Permit, or Lease — State File # ADL 232556
Surety Bond No. 800010307
Know all people by these presents, that the undersigned
Kodiak Electric Association, Inc._____ _ _ _ a (corporation / partnership / sole proprietor / LLC /
Joint Venture — circle one), organized and existing under the laws of the State of Alaska_ as Principal, and
Atlantic Specialty Insurance Company _ organized and existing under the laws of the State of
New York and licensed to do business in the State of Alaska, as Surety, are held and firmly bound unto the
State of Alaska, Department of Natural Resources, in the sum of Five Hundred Thousand and No/100** DOLLARS
-----.----_.___.
($ 0.00** _— _) for the payment of which sum we hereby jointly and severally bind ourselves, our successors, and assigns.
THE OBLIGATIONS of this bond are as follows:
I. The Principal is by written agreement entering into a contract, permit, or lease with the State of Alaska ("the State") involving
State land, which agreement is identified as ADL 232556; Lease
�_(,State file # and agreement type), hereinafter "the
agreement," and is, by reference, incorporated fully herein in all its terms and made a part of this bond.
2. In accordance with State regulations at I I AAC 96.060, the Alaska Department of Natural Resources ("the department") has
determined that the Principal is required to furnish the State of Alaska a corporate surety bond, acceptable to the department and
conditioned upon compliance with all terms of the agreement.
3. The Principal has chosen to post this corporate surety bond with the department as a guarantee that the obligations, terms, and
conditions of the agreement will be completed as required by the Alaska Land Act, AS 38.05, and attendant regulations at I 1
AAC 96.
4. The coverage of this bond extends to the Principal's obligations under the agreement and under applicable laws and regulations,
to assure that all of the activities on and uses of the land subject to the agreement are conducted by the Principal in compliance
with the obligations, terms, and conditions of the agreement.
5. Upon a determination by the State that the Principal has satisfactorily complied with the obligations, terms and conditions of the
agreement pertaining to activities on and uses of the land, and the applicable laws and regulations, then the obligations of this
bond shall be released; otherwise, this bond shall remain in full force and effect until released in writing by the State.
6. The Principal and Surety agree that:
(a) unless the Principal has replaced this bond with other guaranty acceptable to the department conditioned upon compliance
with all terms of the agreement, coverage under this bond shall extend to and include any extension(s) in time of the
agreement, such coverage to continue irrespective of the expiration of the obligations, terms, and conditions originally set
forth in the agreement; the Surety shall not cancel this bond unless released in writing by the State;
(b) notwithstanding any modifications of the agreement approved by the department, this bond remains in full force and the
Surety waives, as a defense against the State, any right to notice of any such modifications;
(c) The department shall review this bond from time to time and may require an adjustment in the amount of the bond. No
increase in bond amount shall bind the surety without the surety's written consent;
(d) the neglect or forbearance of the State in enforcing against the Principal performance by the Principal of any obligation,
term, or condition of the agreement shall not in any way release the Principal or Surety from liability under this bond;
(e) whenever the Principal shall be, and is declared by the State to be, in default under the obligations, terms, and conditions of
the agreement, the State shall notify the Principal and Surety. Upon receipt of a notice of the Principal's default from the
State and demand by the State for performance or payment, the Surety shall promptly pay the face value of this bond to the
State, or in lieu of paying the face amount, the director may approve the Surety's remedy of the default by the Surety fully
completing the performance of the Principal's obligations under the agreement. The Surety's completion of the
performance of the Principal's obligations under the agreement does not relieve the Principal of its obligations under the
agreement;
102-1174(Rev5/11) Page I ol'2
(f) the Principal or the Surety must promptly notify the department and the principal of any action filed alleging the insolvency
or bankruptcy of the Surety or the Principal or alleging any violations which could result in suspension or revocation of the
surety's right to do business in the State of Alaska; and
(g) upon the incapacity of the Surety by reason of bankruptcy, insolvency, or suspension or revocation of its license, the
Principal shall be deemed to be without bond coverage in violation of 1 I AAC 96.060 and AS 38.05 and subject to
enforcement actions described therein.
[Copy, fill -out, and attach the below if more signatures are necessary]
PRINCIPAL
Signed and executed this"h"_ day of_ 20 18
BY: -• ��r`,1a�4t_Qm�c�a� ir'Air�ct-c"
(Print name) (Title) '
KodElectrlc Association, Inc., 1614 Mill Bay Road, Kodiak, AK 99615
`� &(AddressgfPrincipal)
By. -- � -
(S7gnature fficer/ownet-lparinerslmembexs./managing member) ---- (Seal) ---
ACKNOWLEDGEMENT OF PRINCPAL
The fore going instrument was eknowledged before me by
i�,i�r this d of
�Tnnrr r+V rei.
;o �•2z'-
(Name of Individual)
Al -
Witness rglA,handespo official seal
`,,.• QEFlOR "I",.'i;n. lure of
My Commission Expires:
tet
i
= PU��'\pP%= SURETY
SiNed 30th day of _ January
B1': Cs� W$ , Attorney -in -Fact 20 18 --
(Print name)-�—_—_` Title --
Atlantic Specialty Insurance Companv. 605 Hiahwav 169 N suite Rnn Plvmni th RAKI RrA ,
By:
(Address of Surely)
(.Signature of Officer) ---- (Seal) ----
ACKNOWLEDGEMENT OF SURETY
The foregoing instt was acknowledged before me by
Krista M I� 64ffil Pit, 1,// —
ts, t�his� � 30th day of January 2018
Witness' my hacS`'iS cff iaseaF�
(Signature ofNola,; Public)
V t\10Tq/�y m''. _
W My Commission Expires: 12!01/2018
/U,(Seo ��LIG r2
�� 9�F•.? p 1: 2018. • ;gyp `\\�
wAS�li &AL AND ACCEPTANCE BY THE STATE OF ALASKA
'
DEPARTMENT OF NATURAL RESOURCES /
BY: J �Ti
Z� iSlgnatu� thori ed 'Representative Date
State File 4 ADL 232556
BondNo 800010307
102-1174 (Rev 9/05) Page 2 0l'2