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LOPP Process <br /> Northern Water filed for a Preliminary Lease of Power Privilege (LOPP) with United States Bureau of <br /> Reclamation (Reclamation) in August 2011. LOPP is a permitting process which allows for <br /> development of new hydropower at existing Reclamation facilities. Federal project partners such as <br /> Northern Water are given a preference in the selection. A 40-year term is given to the lease. <br /> Reclamation is reimbursed for its review during the process and also charges an annual fee which is <br /> presently 2 mills per kilowatt hour(kwhr). <br /> A Preliminary LOPP was granted by Reclamation in September 2011. This permit allows for continued <br /> evaluation of the technical,environmental, and economic feasibility of a project over a two-year period. <br /> Due to potential Granby Dam upgrade considerations, a two-year extension was granted to the project. <br /> The environmental permitting process is presently taking place and is led by Reclamation. Based upon <br /> recent Reclamation procedures and guidelines, Reclamation is seeking a Categorical Exclusion (CE) for <br /> the project since the area is previously disturbed, is not changing project operations, and is not changing <br /> the water release location back to the Colorado River. Following obtaining of the CE (anticipated <br /> Summer 2014)Northern Water will finalize the LOPP with Reclamation. <br /> Project Description <br /> The proposed Granby Hydro project will be located at the base of Granby Dam in Grand County, <br /> Colorado. The project is being performed under the U.S. Bureau of Reclamation's (Reclamation) Lease <br /> of Power Privilege (LOPP) process. It will utilize the existing outlet flows from Granby Dam to the <br /> Colorado River and act as a run-of-river plant with no changes to the dam releases. <br /> Hydrology <br /> The Granby Dam outlet purpose is primarily to release the minimum flows to the Colorado River as part <br /> of agreements associated with the operation of C-BT. These flows are shown in Table 1. <br /> Table 1 —Flow Release Schedule for Granby Dam <br /> Flows Gaged at Flows Gaged Below <br /> Granby Dam Coffee-McQueary <br /> Month (cfs) Ditch <br /> October 20 - <br /> November 20 - <br /> December 20 - <br /> January 20 - <br /> February 20 - <br /> March 20 - <br /> April 20 - <br /> May - 75 <br /> June - 75 <br /> July - 75 <br /> August - 40 <br /> September - 20 <br /> There are three small ditches below Granby Dam including the Coffee-McQueary Ditch. Since the <br /> required summer flows are measured downstream of these ditches, it is not uncommon during the <br /> irrigation season of May through July for flows below Granby Dam to be in excess of the minimum <br /> 75 cfs flow amount. There are also rare times when Granby Reservoir is about to spill that preemptive <br /> releases are made through the outlet at a rate up to a total flow of 440 cfs. <br /> 3 <br />