Boyce Hydro Power, LLC; Order Proposing Revocation of License, 8253-8255 [2018-03821]
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Federal Register / Vol. 83, No. 38 / Monday, February 26, 2018 / Notices
DEPARTMENT OF ENERGY
Federal Energy Regulatory
Commission
[Project No. 10808–058]
Boyce Hydro Power, LLC; Order
Proposing Revocation of License
1. Boyce Hydro Power, LLC (Boyce
Hydro or licensee) is in violation of
numerous provisions of its license for
the Edenville Hydroelectric Project No.
10808 (Edenville Project), the Federal
Power Act (FPA), and multiple
Commission regulations and orders,
including a Compliance Order issued
pursuant to section 31(a) of the Federal
Power Act.1 As discussed below, the
Commission proposes to revoke the
license pursuant to section 31(b) of the
FPA.
I. Background
2. On October 16, 1998, the
Commission issued a license for the
Edenville Project, a 4.8-megawatt (MW)
hydroelectric project located in Gladwin
and Midland counties, Michigan.2 The
Edenville Project consists of earthen
embankments, known as the Edenville
dam, totaling about 6,600 feet in length
and having a maximum height of 54.5
feet. It spans both the Tittabawassee and
Tobacco Rivers, creating a 2,600-acre
reservoir known as Wixom Lake with a
gross storage capacity of about 40,000
acre-feet and a 49-mile-long shoreline at
full pool. There is a 50-foot-long intake
leading to the powerhouse located at the
dam on the eastern side of the project.
The powerhouse contains two 2.4-MW
Francis-type turbine generator units for
a total installed capacity of 4.8 MW. The
project creates a 0.4-mile-long bypassed
reach on the Tobacco River that extends
from the dam to the point where the
Tobacco River meets the Tittabawassee
River. The project also includes two
reinforced concrete multiple arch
spillways. The 69-foot-wide, 39-foothigh Tittabawassee spillway (also
referred to as the Edenville spillway) is
located on the eastern side of the project
and contains three Tainter gates and two
low-level sluice gates. The Tobacco
spillway is about 72 feet long and 72
feet wide with a crest height of about 40
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1 Boyce
Hydro Power, LLC, 159 FERC 62,292
(2017) (Compliance Order).
2 Wolverine Power Corporation, 85 FERC 61,063
(1998). The license was transferred from Wolverine
Power Corporation to Synex Michigan, LLC on June
23, 2004. See Wolverine Power Corporation and
Synex Michigan, LLC, 107 FERC 62,266 (2004).
Synex Michigan, LLC changed its name to Boyce
Hydro Power, LLC, and filed a statement with the
Commission on July 12, 2007, to this effect. See
Notice of Change in Licensee’s Name (filed July 12,
2007).
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feet, and contains three steel Tainter
gates located on the western side of the
project.
3. Boyce Hydro’s license includes
terms and conditions concerning dam
safety, property rights, water quality,
public recreation and safety, and other
areas of public concern. Boyce Hydro
has a long history of non-compliance
with those terms and conditions and
with related provisions in the FPA and
Commission regulations and orders. The
Compliance Order, which was issued
pursuant to section 31 of the FPA on
June 15, 2017, detailed this history and
staff’s multi-year effort to bring Boyce
Hydro into compliance.3 In particular,
the Compliance Order explained that
Boyce Hydro: (1) Failed to increase the
capacity of spillways to enable them to
pass the probable maximum flood
(PMF) as required by Regional Engineer
directives, license Article 4, and Part 12
of the Commission’s regulations; 4 (2)
performed unauthorized dam repairs in
violation of Regional Engineer directives
and Part 12 of the Commission’s
regulations; 5 (3) performed
unauthorized earth-moving activities in
violation of Standard Articles 19–21 of
the license; 6 (4) failed to file an
adequate Public Safety Plan in violation
of Regional Engineer directives and Part
12 of the Commission’s regulations; 7 (5)
unduly restricted public access to
project facilities and failed to construct
approved recreation facilities in
violation of Standard Article 18 and
Article 410 of the license and the
Commission’s Orders Modifying and
Approving Recreation Plan; 8 (6) failed
to acquire and document all necessary
project property rights in violation of
Standard Article 5 of the license; 9 and
(7) failed to comply with the
Commission’s 1999 Order approving
Boyce Hydro’s Water Quality
Monitoring Plan in violation of that
order and Article 402 of the license.10
The Commission’s primary concern has
been the licensee’s longstanding failure
to address the project’s inadequate
spillway capacity, which currently is
designed to pass only approximately 50
percent of the PMF. Failure of the
Edenville dam could result in the loss
3 Boyce Hydro Power, LLC, 159 FERC 62,292
(2017) (Compliance Order).
4 See Compliance Order, at PP 5–26.
5 See id. PP 35–46.
6 See id. PP 54–76.
7 See id. PP 84–86.
8 See id. PP 92–107 (identifying, among others,
violations of Wolverine Power Corporation, 96
FERC 62,055 (2001) and Synex Michigan, LLC, (Dec.
5, 2006) (unpublished order)).
9 See id. PP 116–124.
10 See id. PP 134–141.
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8253
of human life and the destruction of
property and infrastructure.
4. Ordering Paragraphs (A) through
(M) of the Compliance Order required
Boyce Hydro to provide specific plans,
specifications, reports and other
information to address the violations
identified in that order and to come into
compliance with the Commission’s
regulations and the terms of its license.
On July 14, 2017, and July 27, 2017, the
licensee filed two requests for more time
to comply with certain requirements in
the Compliance Order. By orders issued
July 25, 2017, and August 15, 2017, the
extensions that the licensee requested
were granted, with the exception of one
portion of the second requested
extension, which the order determined
could be completed in the time
provided in the first extension without
the need for a second.11 Those
extensions were granted based on
representations made by the licensee
and its counsel regarding steps that the
licensee was taking to satisfy the
requirements of the Compliance Order.
5. Boyce Hydro failed to comply with
obligations set out in each of the
ordering paragraphs in the Compliance
Order, except for the obligations to
acquire and document certain property
rights (although the lack of designs for
the new and revised spillways makes it
difficult to determine if it has acquired
all necessary property rights) 12 and to
implement certain requirements in the
project’s approved Water Quality
Monitoring Plan.
6. Boyce Hydro violated the following
ordering paragraphs in the Compliance
Order and associated orders extending
time:
• Ordering paragraph (B) directed:
For the Tobacco River Auxiliary
Spillway: By July 15, 2017 (extended to
September 18, 2017), the licensee was
required to file a complete design
11 The first order granted an additional 30 days
to comply with the requirements in ordering
paragraphs (B), (C), (D), (E), (F), and (G) of the
Compliance Order. The second order granted more
time to comply with ordering paragraphs (B), (G),
and (D), but denied more time for complying with
ordering paragraph (F).
12 In filings made with the Commission on July
26, 2017, August 22, 2017, and January 22, 2018,
Boyce Hydro states that it possesses the necessary
property rights over the land within the project
boundary and that it has acquired rights to land
(and has ability to acquire rights to additional land)
that may be necessary to complete construction of
the Tobacco River Auxiliary Spillway. However,
because the licensee has not provided plans and
specifications for the Tittabawassee Auxiliary
Spillway or provided other documentation specific
to where the Tittabawassee Auxiliary Spillway will
be constructed, Commission staff is still uncertain
if the licensee has, in fact, obtained rights to all
land necessary for the construction of the
Tittabawassee Auxiliary Spillway, as required by
the Compliance Order.
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Federal Register / Vol. 83, No. 38 / Monday, February 26, 2018 / Notices
package with the Commission’s Division
of Dam Safety and Inspection, Chicago
Regional Engineer (Regional Engineer)
for a Tobacco River Auxiliary Spillway.
The design package must fully address
all items noted in the Regional
Engineer’s letter to the licensee dated
June 6, 2016.
• Ordering paragraph (D) directed:
For the Tittabawassee River Auxiliary
Spillway: By August 14, 2017 (extended
to November 14, 2017), the licensee was
required to file with the Regional
Engineer, plans, specifications, and a
schedule to construct a Tittabawassee
River Auxiliary Spillway.
• Ordering paragraph (F) directed: By
October 13, 2017 (extended to
November 14, 2017), the licensee was
required to file with the Regional
Engineer, a plan and schedule for
additional modifications to the project
to meet the full (100%) Probable
Maximum Flood.
• Ordering paragraph (G) directed: By
July 30, 2017 (extended to September
30, 2017), the licensee was required to
file with the Regional Engineer,
complete plans and specifications for
permanent repairs to both left and right
Tobacco River abutment spillway walls,
a complete work schedule, detailed
drawings, a water management plan, an
erosion control plan, a Temporary
Construction Emergency Action Plan,
and a Quality Control Inspection
Program as originally specified in the
Regional Engineer’s letter to the licensee
issued December 8, 2016.
• Ordering paragraph (J) directed: By
September 13, 2017, the licensee was
required to provide reasonable access to
project lands and waters for the public
and to file documentation that such
access has been provided. The licensee’s
documentation must include
photographs showing that gates
restricting access to parking and fishing
areas are open, that fencing blocking
access to recreation features has been
removed, and that reasonable access to
the water is allowed. The licensee’s
documentation must also include a
statement from the licensee affirming its
compliance with the access provisions
of Article 18.
• Ordering paragraph (K) directed: By
September 13, 2017, the licensee was
required to file with the Regional
Engineer, a complete design package for
construction of all recreation facilities
required by the project’s approved
Recreation Plan. The approved
recreation facilities for the
Tittabawassee side include: A parking
lot for 15 cars off of State Highway 30,
a parking lot with two handicapped
spaces, a barrier-free restroom, a railed
handicapped-accessible fishing pier
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17:58 Feb 23, 2018
Jkt 244001
next to the powerhouse, two canoe
portages, access paths, and signs that
identify the recreation facilities. The
approved recreation facilities for the
Tobacco side include: A parking lot for
15 cars off of State Highway 30, an
access path, stairs to a railed fishing
pier, and signs that identify the
recreation facilities. Within 90 days of
completing this work, the licensee must
file documentation including as-built
drawings and photographs
demonstrating that the recreation
facilities in the approved Recreation
Plan have been constructed.
7. Boyce Hydro failed to make the
filings required by ordering paragraphs
(B), (D), (F), (G), (J), and (K) of the
Compliance Order. It claims to have
started the process of preparing the
design package for the Tobacco River
Auxiliary Spillway that was required by
Ordering Paragraph (B), but it requested
an additional four to five-month
extension to complete that design
package.13 And that is only the design
of the Tobacco River Auxiliary
Spillway—Boyce Hydro claims that it
lacks the funds to actually construct the
spillway and will need to save money
over some unspecified period of time
(and resolve outstanding state
permitting issues) before it can start
construction.14 Of course, this addresses
just one of the two auxiliary spillways
it must design and construct and does
not include the other modifications that
it will need to make to satisfy PMF
requirements and/or to satisfy its
obligations under the Compliance
Order.
8. Boyce Hydro did not seek rehearing
of the Compliance Order, and it has
admitted that it failed to meet the
obligations imposed by that order.15 It
remains in violation of its license, the
FPA, and Commission regulations and
orders.16
II. Discussion
9. Under section 31(b) of the FPA,17
after providing notice and an
13 See, e.g., Boyce Hydro Power, LLC, Docket Nos.
P–10808–047 & –053, at 8–9 (Dec. 1, 2017).
14 See id. at 9–10.
15 See id. at 8–15 (admitting, among other things,
Boyce Hydro’s failure to comply with Ordering
Paragraphs (B), (D), (F), (G), (J), and (K) of the
Compliance Order and requesting further
extensions and/or a stay of those obligations).
16 On November 20, 2017, Commission staff
issued an order requiring Boyce Hydro to cease
generating at the Edenville Project, and Boyce
Hydro filed a timely request for rehearing of that
order. Concurrent with this Order Proposing
Revocation, we are issuing an order denying
rehearing of the Cease Generation Order.
17 See 16 U.S.C. 823b(b) (2012). Section 31(b)
provides that after notice and an opportunity for an
evidentiary hearing, the Commission may issue an
order revoking a license, where the licensee is
PO 00000
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Fmt 4703
Sfmt 4703
opportunity for an evidentiary hearing,
we may issue an order revoking a
license if we find that the licensee
knowingly violated a final compliance
order and was given a reasonable time
to comply with that order before the
revocation proceeding was
commenced.18 In addition, section 31(b)
provides that the Compliance Order
shall be subject to de novo review and
that the Commission shall consider the
nature and seriousness of the violation
and the licensee’s efforts to remedy the
violation.
10. This order provides notice that we
propose to revoke the license for the
Edenville Project No. 10808 under
section 31(b). As explained in the
Compliance Order, Boyce Hydro has
failed for many years to comply with
significant license and safety
requirements, notwithstanding having
been given opportunities to come into
compliance. The Compliance Order set
out specific parameters for Boyce Hydro
to achieve compliance with its license.
The licensee failed to meet nearly all the
obligations in the Compliance Order,
even after Commission staff granted
multiple extensions.19 Thus, based on
the record, there is no reason to believe
that the licensee intends to come into
compliance. We conclude that it has
been given a reasonable time to comply
with the Compliance Order and
considering the serious dam safety
issues 20 and lack of demonstrated effort
found by the Commission to have knowingly
violated a final order and has been given reasonable
time to comply fully with that order.
18 See e.g. Eastern Hydroelectric Corp., 149 FERC
61,036 (2014), reh’g denied, 150 FERC 61,099
(2015) (revoking license for failure to construct a
required fish passage); Virginia Hydrogeneration
and Historical Society, L.C., 104 FERC 61,282
(2003) (proposing revocation of license for failure
to comply with environmental conditions); Energy
Alternatives of North America, Inc., 68 FERC ¶
61,196 (1994) (proposing revocation of the license
for failure to comply with public safety
requirements).
19 Boyce Hydro’s offer to place 50 percent of gross
revenues from the Edenville Project into escrow
until it has saved enough money to construct the
Tobacco River Auxiliary Spillway does not
convince us that it will satisfy its obligations under
the Compliance Order if we grant another
extension. Boyce Hydro has not provided any
estimate of when it will complete construction of
that spillway, let alone when it can complete and
submit the designs for the other auxiliary spillway
and satisfy the other obligations set out in the
Compliance Order.
20 Public safety would not be affected by revoking
the license. Should the Commission ultimately
revoke Boyce Hydro’s license, the Commission’s
jurisdiction will end, and authority over the site
will pass to the State of Michigan’s dam regulatory
authorities. See Mich. Comp. Laws 324.31506
(giving the Michigan Department of Environmental
Quality regulatory authority over dams and
impoundments in the state); see also Eastern
Hydroelectric Corp., 149 FERC 61,036 at P 35
(noting that upon revocation the authority to
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Federal Register / Vol. 83, No. 38 / Monday, February 26, 2018 / Notices
by Boyce Hydro to comply with the
Compliance Order, we propose
revocation of the project license.21
11. The licensee may request an
evidentiary hearing before an
Administrative Law Judge within 30
days of this issuance date of this
order.22 If, within 30 days, the licensee
requests a hearing, the Commission will
set the matter for hearing. If the licensee
does not request a hearing, the
Commission will decide this matter
based on the written record. Any
interested person may file a motion to
intervene in accordance with the
requirements of the Commission’s Rules
of Practice and Procedure (18 CFR
385.214). A person does not have to
intervene in order to have comments
considered. Any person may file with
the Secretary of the Commission,
comments in support of or in opposition
to the proposed revocation. The
Commission will consider these
comments in determining the
appropriate action to be taken, but the
filing of a comment alone will not serve
to make the filer a party to the
proceeding.
The Commission Orders
(A) Pursuant to section 31(b) of the
FPA, 16 U.S.C. 823b(b) (2012), the
Commission proposes to revoke the
license for the Edenville Project No.
10808.
(B) Boyce Hydro may request an
evidentiary hearing within 30 days of
the issuance date of this order.
By the Commission.
Issued February 15, 2018.
Kimberly D. Bose,
Secretary.
[FR Doc. 2018–03821 Filed 2–23–18; 8:45 am]
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BILLING CODE 6717–01–P
regulate dam safety and other issues related to the
dam and impoundment would transfer to the state).
21 Revocation of the Edenville Project license does
not mandate removal or any modification of the
dam. While, the Commission has broad authority to
fashion appropriate remedies to further the goals of
the FPA in a manner that is necessary and
appropriate to carry out the revocation of this
license, as a general rule, we do not condition the
effectiveness of a license revocation by imposing
additional requirements on a licensee that has
shown its unwillingness to comply with other
Commission orders. Eastern Hydroelectric Corp.,
149 FERC 61,036 at P 33 (declining request to order
removal of all project facilities including the dam
and instead only requiring licensee to disable all of
the project’s generating equipment to prevent
operation of the project).
22 See 16 U.S.C. 823b(b) (2012).
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DEPARTMENT OF ENERGY
Federal Energy Regulatory
Commission
[Docket No. PF18–2–000]
Brooke County Access I, LLC; Notice
of Intent To Prepare an Environmental
Assessment for the Planned Brooke
County Access Project and Request
for Comments on Environmental
Issues
The staff of the Federal Energy
Regulatory Commission (FERC or
Commission) will prepare an
environmental assessment (EA) that will
discuss the environmental impacts of
the Brook County Access Project
involving construction and operation of
facilities by Brooke County Access I,
LLC (BCAI), in Washington County,
Pennsylvania and Brooke County, West
Virginia. The Commission will use this
EA in its decision-making process to
determine whether the project is in the
public convenience and necessity.
This notice announces the opening of
the scoping process the Commission
will use to gather input from the public
and interested agencies on the project.
You can make a difference by providing
us with your specific comments or
concerns about the project. Your
comments should focus on the potential
environmental effects, reasonable
alternatives, and measures to avoid or
lessen environmental impacts. Your
input will help the Commission staff
determine what issues they need to
evaluate in the EA. To ensure that your
comments are timely and properly
recorded, please send your comments so
that the Commission receives them in
Washington, DC on or before March 22,
2018.
If you sent comments on this project
to the Commission before the opening of
this docket on October 17, 2017, you
will need to file those comments in
Docket No. PF18–2–000 to ensure they
are considered as part of this
proceeding.
This notice is being sent to the
Commission’s current environmental
mailing list for this project. State and
local government representatives should
notify their constituents of this planned
project and encourage them to comment
on their areas of concern.
If you are a landowner receiving this
notice, a pipeline company
representative may contact you about
the acquisition of an easement to
construct, operate, and maintain the
planned facilities. The company would
seek to negotiate a mutually acceptable
agreement. However, if the Commission
approves the project, that approval
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8255
conveys with it the right of eminent
domain. Therefore, if easement
negotiations fail to produce an
agreement, the pipeline company could
initiate condemnation proceedings
where compensation would be
determined in accordance with state
law.
A fact sheet prepared by the FERC
entitled An Interstate Natural Gas
Facility On My Land? What Do I Need
To Know? is available for viewing on
the FERC website (www.ferc.gov). This
fact sheet addresses a number of
typically asked questions, including the
use of eminent domain and how to
participate in the Commission’s
proceedings.
Public Participation
For your convenience, there are three
methods you can use to submit your
comments to the Commission. The
Commission encourages electronic filing
of comments and has expert staff
available to assist you at (202) 502–8258
or FercOnlineSupport@ferc.gov. Please
carefully follow these instructions so
that your comments are properly
recorded.
(1) You can file your comments
electronically using the eComment
feature on the Commission’s website
(www.ferc.gov) under the link to
Documents and Filings. This is an easy
method for submitting brief, text-only
comments on a project;
(2) You can file your comments
electronically by using the eFiling
feature on the Commission’s website
(www.ferc.gov) under the link to
Documents and Filings. With eFiling,
you can provide comments in a variety
of formats by attaching them as a file
with your submission. New eFiling
users must first create an account by
clicking on eRegister. If you are filing a
comment on a particular project, please
select ‘‘Comment on a Filing’’ as the
filing type; or
(3) You can file a paper copy of your
comments by mailing them to the
following address. Be sure to reference
the project docket number (PF18–2–000)
with your submission: Kimberly D.
Bose, Secretary, Federal Energy
Regulatory Commission, 888 First Street
NE, Room 1A, Washington, DC 20426.
Summary of the Planned Project
BCAI plans to construct and operate
a varying diameter natural gas
transmission pipeline from
interconnects with Energy Transfer
Partner’s Revolution Cryogenic Facility
and the National Fuel Gas Supply
Corporation’s (National Fuel) Line N
natural gas mainline in Washington
County, Pennsylvania, to a proposed
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Agencies
[Federal Register Volume 83, Number 38 (Monday, February 26, 2018)]
[Notices]
[Pages 8253-8255]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-03821]
[[Page 8253]]
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DEPARTMENT OF ENERGY
Federal Energy Regulatory Commission
[Project No. 10808-058]
Boyce Hydro Power, LLC; Order Proposing Revocation of License
1. Boyce Hydro Power, LLC (Boyce Hydro or licensee) is in violation
of numerous provisions of its license for the Edenville Hydroelectric
Project No. 10808 (Edenville Project), the Federal Power Act (FPA), and
multiple Commission regulations and orders, including a Compliance
Order issued pursuant to section 31(a) of the Federal Power Act.\1\ As
discussed below, the Commission proposes to revoke the license pursuant
to section 31(b) of the FPA.
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\1\ Boyce Hydro Power, LLC, 159 FERC 62,292 (2017) (Compliance
Order).
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I. Background
2. On October 16, 1998, the Commission issued a license for the
Edenville Project, a 4.8-megawatt (MW) hydroelectric project located in
Gladwin and Midland counties, Michigan.\2\ The Edenville Project
consists of earthen embankments, known as the Edenville dam, totaling
about 6,600 feet in length and having a maximum height of 54.5 feet. It
spans both the Tittabawassee and Tobacco Rivers, creating a 2,600-acre
reservoir known as Wixom Lake with a gross storage capacity of about
40,000 acre-feet and a 49-mile-long shoreline at full pool. There is a
50-foot-long intake leading to the powerhouse located at the dam on the
eastern side of the project. The powerhouse contains two 2.4-MW
Francis-type turbine generator units for a total installed capacity of
4.8 MW. The project creates a 0.4-mile-long bypassed reach on the
Tobacco River that extends from the dam to the point where the Tobacco
River meets the Tittabawassee River. The project also includes two
reinforced concrete multiple arch spillways. The 69-foot-wide, 39-foot-
high Tittabawassee spillway (also referred to as the Edenville
spillway) is located on the eastern side of the project and contains
three Tainter gates and two low-level sluice gates. The Tobacco
spillway is about 72 feet long and 72 feet wide with a crest height of
about 40 feet, and contains three steel Tainter gates located on the
western side of the project.
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\2\ Wolverine Power Corporation, 85 FERC 61,063 (1998). The
license was transferred from Wolverine Power Corporation to Synex
Michigan, LLC on June 23, 2004. See Wolverine Power Corporation and
Synex Michigan, LLC, 107 FERC 62,266 (2004). Synex Michigan, LLC
changed its name to Boyce Hydro Power, LLC, and filed a statement
with the Commission on July 12, 2007, to this effect. See Notice of
Change in Licensee's Name (filed July 12, 2007).
---------------------------------------------------------------------------
3. Boyce Hydro's license includes terms and conditions concerning
dam safety, property rights, water quality, public recreation and
safety, and other areas of public concern. Boyce Hydro has a long
history of non-compliance with those terms and conditions and with
related provisions in the FPA and Commission regulations and orders.
The Compliance Order, which was issued pursuant to section 31 of the
FPA on June 15, 2017, detailed this history and staff's multi-year
effort to bring Boyce Hydro into compliance.\3\ In particular, the
Compliance Order explained that Boyce Hydro: (1) Failed to increase the
capacity of spillways to enable them to pass the probable maximum flood
(PMF) as required by Regional Engineer directives, license Article 4,
and Part 12 of the Commission's regulations; \4\ (2) performed
unauthorized dam repairs in violation of Regional Engineer directives
and Part 12 of the Commission's regulations; \5\ (3) performed
unauthorized earth-moving activities in violation of Standard Articles
19-21 of the license; \6\ (4) failed to file an adequate Public Safety
Plan in violation of Regional Engineer directives and Part 12 of the
Commission's regulations; \7\ (5) unduly restricted public access to
project facilities and failed to construct approved recreation
facilities in violation of Standard Article 18 and Article 410 of the
license and the Commission's Orders Modifying and Approving Recreation
Plan; \8\ (6) failed to acquire and document all necessary project
property rights in violation of Standard Article 5 of the license; \9\
and (7) failed to comply with the Commission's 1999 Order approving
Boyce Hydro's Water Quality Monitoring Plan in violation of that order
and Article 402 of the license.\10\ The Commission's primary concern
has been the licensee's longstanding failure to address the project's
inadequate spillway capacity, which currently is designed to pass only
approximately 50 percent of the PMF. Failure of the Edenville dam could
result in the loss of human life and the destruction of property and
infrastructure.
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\3\ Boyce Hydro Power, LLC, 159 FERC 62,292 (2017) (Compliance
Order).
\4\ See Compliance Order, at PP 5-26.
\5\ See id. PP 35-46.
\6\ See id. PP 54-76.
\7\ See id. PP 84-86.
\8\ See id. PP 92-107 (identifying, among others, violations of
Wolverine Power Corporation, 96 FERC 62,055 (2001) and Synex
Michigan, LLC, (Dec. 5, 2006) (unpublished order)).
\9\ See id. PP 116-124.
\10\ See id. PP 134-141.
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4. Ordering Paragraphs (A) through (M) of the Compliance Order
required Boyce Hydro to provide specific plans, specifications, reports
and other information to address the violations identified in that
order and to come into compliance with the Commission's regulations and
the terms of its license. On July 14, 2017, and July 27, 2017, the
licensee filed two requests for more time to comply with certain
requirements in the Compliance Order. By orders issued July 25, 2017,
and August 15, 2017, the extensions that the licensee requested were
granted, with the exception of one portion of the second requested
extension, which the order determined could be completed in the time
provided in the first extension without the need for a second.\11\
Those extensions were granted based on representations made by the
licensee and its counsel regarding steps that the licensee was taking
to satisfy the requirements of the Compliance Order.
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\11\ The first order granted an additional 30 days to comply
with the requirements in ordering paragraphs (B), (C), (D), (E),
(F), and (G) of the Compliance Order. The second order granted more
time to comply with ordering paragraphs (B), (G), and (D), but
denied more time for complying with ordering paragraph (F).
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5. Boyce Hydro failed to comply with obligations set out in each of
the ordering paragraphs in the Compliance Order, except for the
obligations to acquire and document certain property rights (although
the lack of designs for the new and revised spillways makes it
difficult to determine if it has acquired all necessary property
rights) \12\ and to implement certain requirements in the project's
approved Water Quality Monitoring Plan.
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\12\ In filings made with the Commission on July 26, 2017,
August 22, 2017, and January 22, 2018, Boyce Hydro states that it
possesses the necessary property rights over the land within the
project boundary and that it has acquired rights to land (and has
ability to acquire rights to additional land) that may be necessary
to complete construction of the Tobacco River Auxiliary Spillway.
However, because the licensee has not provided plans and
specifications for the Tittabawassee Auxiliary Spillway or provided
other documentation specific to where the Tittabawassee Auxiliary
Spillway will be constructed, Commission staff is still uncertain if
the licensee has, in fact, obtained rights to all land necessary for
the construction of the Tittabawassee Auxiliary Spillway, as
required by the Compliance Order.
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6. Boyce Hydro violated the following ordering paragraphs in the
Compliance Order and associated orders extending time:
Ordering paragraph (B) directed: For the Tobacco River
Auxiliary Spillway: By July 15, 2017 (extended to September 18, 2017),
the licensee was required to file a complete design
[[Page 8254]]
package with the Commission's Division of Dam Safety and Inspection,
Chicago Regional Engineer (Regional Engineer) for a Tobacco River
Auxiliary Spillway. The design package must fully address all items
noted in the Regional Engineer's letter to the licensee dated June 6,
2016.
Ordering paragraph (D) directed: For the Tittabawassee
River Auxiliary Spillway: By August 14, 2017 (extended to November 14,
2017), the licensee was required to file with the Regional Engineer,
plans, specifications, and a schedule to construct a Tittabawassee
River Auxiliary Spillway.
Ordering paragraph (F) directed: By October 13, 2017
(extended to November 14, 2017), the licensee was required to file with
the Regional Engineer, a plan and schedule for additional modifications
to the project to meet the full (100%) Probable Maximum Flood.
Ordering paragraph (G) directed: By July 30, 2017
(extended to September 30, 2017), the licensee was required to file
with the Regional Engineer, complete plans and specifications for
permanent repairs to both left and right Tobacco River abutment
spillway walls, a complete work schedule, detailed drawings, a water
management plan, an erosion control plan, a Temporary Construction
Emergency Action Plan, and a Quality Control Inspection Program as
originally specified in the Regional Engineer's letter to the licensee
issued December 8, 2016.
Ordering paragraph (J) directed: By September 13, 2017,
the licensee was required to provide reasonable access to project lands
and waters for the public and to file documentation that such access
has been provided. The licensee's documentation must include
photographs showing that gates restricting access to parking and
fishing areas are open, that fencing blocking access to recreation
features has been removed, and that reasonable access to the water is
allowed. The licensee's documentation must also include a statement
from the licensee affirming its compliance with the access provisions
of Article 18.
Ordering paragraph (K) directed: By September 13, 2017,
the licensee was required to file with the Regional Engineer, a
complete design package for construction of all recreation facilities
required by the project's approved Recreation Plan. The approved
recreation facilities for the Tittabawassee side include: A parking lot
for 15 cars off of State Highway 30, a parking lot with two handicapped
spaces, a barrier-free restroom, a railed handicapped-accessible
fishing pier next to the powerhouse, two canoe portages, access paths,
and signs that identify the recreation facilities. The approved
recreation facilities for the Tobacco side include: A parking lot for
15 cars off of State Highway 30, an access path, stairs to a railed
fishing pier, and signs that identify the recreation facilities. Within
90 days of completing this work, the licensee must file documentation
including as-built drawings and photographs demonstrating that the
recreation facilities in the approved Recreation Plan have been
constructed.
7. Boyce Hydro failed to make the filings required by ordering
paragraphs (B), (D), (F), (G), (J), and (K) of the Compliance Order. It
claims to have started the process of preparing the design package for
the Tobacco River Auxiliary Spillway that was required by Ordering
Paragraph (B), but it requested an additional four to five-month
extension to complete that design package.\13\ And that is only the
design of the Tobacco River Auxiliary Spillway--Boyce Hydro claims that
it lacks the funds to actually construct the spillway and will need to
save money over some unspecified period of time (and resolve
outstanding state permitting issues) before it can start
construction.\14\ Of course, this addresses just one of the two
auxiliary spillways it must design and construct and does not include
the other modifications that it will need to make to satisfy PMF
requirements and/or to satisfy its obligations under the Compliance
Order.
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\13\ See, e.g., Boyce Hydro Power, LLC, Docket Nos. P-10808-047
& -053, at 8-9 (Dec. 1, 2017).
\14\ See id. at 9-10.
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8. Boyce Hydro did not seek rehearing of the Compliance Order, and
it has admitted that it failed to meet the obligations imposed by that
order.\15\ It remains in violation of its license, the FPA, and
Commission regulations and orders.\16\
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\15\ See id. at 8-15 (admitting, among other things, Boyce
Hydro's failure to comply with Ordering Paragraphs (B), (D), (F),
(G), (J), and (K) of the Compliance Order and requesting further
extensions and/or a stay of those obligations).
\16\ On November 20, 2017, Commission staff issued an order
requiring Boyce Hydro to cease generating at the Edenville Project,
and Boyce Hydro filed a timely request for rehearing of that order.
Concurrent with this Order Proposing Revocation, we are issuing an
order denying rehearing of the Cease Generation Order.
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II. Discussion
9. Under section 31(b) of the FPA,\17\ after providing notice and
an opportunity for an evidentiary hearing, we may issue an order
revoking a license if we find that the licensee knowingly violated a
final compliance order and was given a reasonable time to comply with
that order before the revocation proceeding was commenced.\18\ In
addition, section 31(b) provides that the Compliance Order shall be
subject to de novo review and that the Commission shall consider the
nature and seriousness of the violation and the licensee's efforts to
remedy the violation.
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\17\ See 16 U.S.C. 823b(b) (2012). Section 31(b) provides that
after notice and an opportunity for an evidentiary hearing, the
Commission may issue an order revoking a license, where the licensee
is found by the Commission to have knowingly violated a final order
and has been given reasonable time to comply fully with that order.
\18\ See e.g. Eastern Hydroelectric Corp., 149 FERC 61,036
(2014), reh'g denied, 150 FERC 61,099 (2015) (revoking license for
failure to construct a required fish passage); Virginia
Hydrogeneration and Historical Society, L.C., 104 FERC 61,282 (2003)
(proposing revocation of license for failure to comply with
environmental conditions); Energy Alternatives of North America,
Inc., 68 FERC ] 61,196 (1994) (proposing revocation of the license
for failure to comply with public safety requirements).
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10. This order provides notice that we propose to revoke the
license for the Edenville Project No. 10808 under section 31(b). As
explained in the Compliance Order, Boyce Hydro has failed for many
years to comply with significant license and safety requirements,
notwithstanding having been given opportunities to come into
compliance. The Compliance Order set out specific parameters for Boyce
Hydro to achieve compliance with its license. The licensee failed to
meet nearly all the obligations in the Compliance Order, even after
Commission staff granted multiple extensions.\19\ Thus, based on the
record, there is no reason to believe that the licensee intends to come
into compliance. We conclude that it has been given a reasonable time
to comply with the Compliance Order and considering the serious dam
safety issues \20\ and lack of demonstrated effort
[[Page 8255]]
by Boyce Hydro to comply with the Compliance Order, we propose
revocation of the project license.\21\
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\19\ Boyce Hydro's offer to place 50 percent of gross revenues
from the Edenville Project into escrow until it has saved enough
money to construct the Tobacco River Auxiliary Spillway does not
convince us that it will satisfy its obligations under the
Compliance Order if we grant another extension. Boyce Hydro has not
provided any estimate of when it will complete construction of that
spillway, let alone when it can complete and submit the designs for
the other auxiliary spillway and satisfy the other obligations set
out in the Compliance Order.
\20\ Public safety would not be affected by revoking the
license. Should the Commission ultimately revoke Boyce Hydro's
license, the Commission's jurisdiction will end, and authority over
the site will pass to the State of Michigan's dam regulatory
authorities. See Mich. Comp. Laws 324.31506 (giving the Michigan
Department of Environmental Quality regulatory authority over dams
and impoundments in the state); see also Eastern Hydroelectric
Corp., 149 FERC 61,036 at P 35 (noting that upon revocation the
authority to regulate dam safety and other issues related to the dam
and impoundment would transfer to the state).
\21\ Revocation of the Edenville Project license does not
mandate removal or any modification of the dam. While, the
Commission has broad authority to fashion appropriate remedies to
further the goals of the FPA in a manner that is necessary and
appropriate to carry out the revocation of this license, as a
general rule, we do not condition the effectiveness of a license
revocation by imposing additional requirements on a licensee that
has shown its unwillingness to comply with other Commission orders.
Eastern Hydroelectric Corp., 149 FERC 61,036 at P 33 (declining
request to order removal of all project facilities including the dam
and instead only requiring licensee to disable all of the project's
generating equipment to prevent operation of the project).
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11. The licensee may request an evidentiary hearing before an
Administrative Law Judge within 30 days of this issuance date of this
order.\22\ If, within 30 days, the licensee requests a hearing, the
Commission will set the matter for hearing. If the licensee does not
request a hearing, the Commission will decide this matter based on the
written record. Any interested person may file a motion to intervene in
accordance with the requirements of the Commission's Rules of Practice
and Procedure (18 CFR 385.214). A person does not have to intervene in
order to have comments considered. Any person may file with the
Secretary of the Commission, comments in support of or in opposition to
the proposed revocation. The Commission will consider these comments in
determining the appropriate action to be taken, but the filing of a
comment alone will not serve to make the filer a party to the
proceeding.
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\22\ See 16 U.S.C. 823b(b) (2012).
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The Commission Orders
(A) Pursuant to section 31(b) of the FPA, 16 U.S.C. 823b(b) (2012),
the Commission proposes to revoke the license for the Edenville Project
No. 10808.
(B) Boyce Hydro may request an evidentiary hearing within 30 days
of the issuance date of this order.
By the Commission.
Issued February 15, 2018.
Kimberly D. Bose,
Secretary.
[FR Doc. 2018-03821 Filed 2-23-18; 8:45 am]
BILLING CODE 6717-01-P