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PacifiCorp Surprises Klamath Dam Removal Advocates by Pulling Permit Application. Will Dam Removal Agreement be Reached Soon?

By Dan Bacher

July 17, 2008. The Warren Buffett subsidiary that owns a series of hydroelectric dams in northern California and southern Oregon on Friday sent a letter to the State of California withdrawing its water quality permit application, surprising dam removal advocates who were planning to attend hearings regarding the permit over the coming week.

Robert E. Dolan, the counsel for PacifiCorp Energy, said the application for water quality certification, a key document required for continued operation of its dams and hydroelectric facilities under the Clean Water Act, was withdrawn to facilitate settlement negotiations for “a long term settlement of the project.”

He said the company intends to resubmit its application to the State Water Resources Control Board in the “near-future.” The application withdrawal occurs as the company is negotiating about the future of the controversial dams with the state and federal governments.

A broad coalition of Klamath River Indian Tribes, recreational fishing groups, commercial fishing organizations and conservation groups is pushing for the removal of four PacifiCorp Dams in northern California and southern Oregon in order to restore populations of imperiled salmon and other fish. They are hoping that the letter is a sign that the company is ready to agree to dam removal, since the dams cause massive blooms of toxic algae, as well as block salmon and steelhead migrations into the river’s headwaters.

“We’re cautiously optimistic,” said Craig Tucker, spokesman for the Karuk Indian Tribe in Orleans, California. ”We’re hoping for the best, but preparing for the worst. If the agencies don't agree on a package that removes four dams by 2015 and is consistent with the restoration settlement agreement, we can’t support it.”

Tucker said his “strong suspicion” is that the federal government, California, Oregon and PacifiCorp have put together some form of dam removal agreement, but at press time he was trying to find out more specifics.

“We don’t know if it’s time to time to pop the cork of the champagne bottle or to make more protest signs,” quipped Tucker. “We would like the agreement to be one where PacifiCorp submits a ‘surrender’ application paving the way for dam removal. However, we fear that they may come up with a dam removal plan that really isn’t a dam removal plan.”

Regina Chichizola, the Klamath Riverkeeper, said she believes the reason why PacifiCorp pulled the permit applications was because it feared the opposition to the dams it would face in the public hearings. “They apparently didn’t want to deal with all of the people coming to testify about the toxic algae and pollution produced by the dams,” she stated.

The withdrawal of a permit application by a power company, accompanied by the immediate submission of another application, is “pretty common,” said Marianna Aue, counsel to the State Water Resources Control Board. However, it is uncommon to withdraw a permit application without an immediate submission of a new one, as PacifiCorp has done.

A broad coalition of Klamath Basin Indian Tribe members, fishermen and conservationists traveled from California and Oregon to Omaha, Nebraska in early May to challenge Warren Buffet to remove his dams at the Berkshire Hathaway annual shareholders meeting.

The California Energy Commission in 2007 estimated the cost of removing the dams would be about $114 million less costly than relicensing the project and installing expensive fish ladders, according to PacifiCorp data.