compatibility with the recreational use of project lands.

Staff analyses show that, subject to the conditions imposed herein, approval of the request for change in land rights at FERC Project No. 2232 would be in the public interest.

It is ordered that:

(A) The application filed on January 13, 1978, by Duke Power Company for Commission approval of a change in land rights for Catawba-Wateree Project No. 2232 is approved subject to inclusion in the instrument of conveyance of additional covenants to insure that:

(1) The right to use the land, which is the subject of this conveyance, for project purposes is hereby reserved to the FERC project licensee, its successors, and assigns.

(2) All necessary precautions shall be taken by Grantee during construction and subsequent operation and maintenance of the new bridge to protect and enhance the environmental values of any affected FERC project lands and waters.

(B) If any archeological resources are discovered during construction of the new bridge, all construction will be halted and the State Historic Preservation Officer will be contacted by Grantee to determine any measures needed to protect or salvage the resources.

(C) Upon completion of the construction, all exposed land areas shall be mulched and seeded by Grantee with a permanent ground cover to prevent erosion.

(D) After the superstructure of the existing bridge is removed, the substructure shall be removed by Grantee to a depth of five feet below the maximum lake drawdown (560 m.s.l.) to eliminate it as a potential hazard.

(E) Licensee shall file a copy of the instrument of conveyance modified pursuant to paragraph (A) above within 60 days of its execution.

-Footnote

'Authority to act on this matter is delegated to the Director, Office of Electric Power Regulation, under Section 3.5(g) of the Commission's Regulations, 18 CFR 3.5(g) (as amended, August 14, 1978, FERC Statutes and Regulations 30,016).

On June 20, 1977,' the South Carolina Electric & Gas Company (SCE&G) filed an application requesting approval of the conveyance in fee of several parcels of land totalling 1.29 acres within the project boundary of the Saluda Project No. 516 to certain individuals.2

The Saluda Project is located on the Saluda River in Lexington, Newberry, Richland, and Saluda Counties, South Carolina. The parcels of land under consideration are located on the shores of Lake Murray, near the town of Chapin, Lexington County, South Carolina.

Public notice of the filing of this application was given with October 31, 1977, as the last date for filing protests and petitions to intervene. None was received.

By order issued July 20, 1966, 36 FPC 136, the Commission authorized the disposal of certain project lands not below the 360-foot contour with special conditions incorporated into the deed of conveyance.

The parcels of land involved in this application were created in 1962 by an unauthorized fill of project land by a private landowner. Without the knowledge of SCE&G and without Commission approval, the private landowner filled these lands to

an elevation of or above elevation 360, subdivided the fill-land into lots, and sold the parcels to six buyers, four of whom have erected private residences on the lots.

In order for the landowners to obtain clear titles and to eliminate the unauthorized encroachment upon project lands, SCE&G has requested approval to sell the filled property to the parties occupying the parcels.

The Licensee's proposed deed of conveyance states that: (1) the right is reserved to the Licensee, its successors and assigns, to use the affected lands for project purposes, including flowage rights and public recreational purposes; (2) the use of the land will not endanger health, create a nuisance, or otherwise be incompatible with overall project recreational use; and (3) the use of the land shall be for single family residential purposes and comply with State and Federal laws and regulations relating to the protection of environmental values affecting project lands and waters.

Staff's analysis shows that project lands presently reserved for public recreation would not be affected, and that approval of the sale of the land would not be a major Federal action significantly affecting the quality of the human environment.

[162,05

On May 26, 1978, Alabama Power Company, Licensee for the Coosa River Project No. 2146, filed an application for Commission approval of a change in land rights for the project.'

The Licensee proposes (1) to lease to MidWestern Nurseries, Inc., of Tahlequah, Oklahoma (Lessee) for a period of 25 years, with an option to renew for another 25 years, a 146-acre parcel of project land located in part within the flood easement of Project No. 2146, in Sections 11, 13 and 14, T. 10, S., R., 8 E., Cherokee County, Alabama; (2) to grant Lessee, to the extent of its rights to do so, the nonexclusive right to use water from the Weiss Reservoir intake canal, the Coosa River below Weiss Dam, and from an inland lake in Sections 13 and 14 owned in part by Licensee-including rights to install, operate, and maintain water withdrawal and irrigation facilities; and (3) to grant Lessee, to the extent of its rights to do so, the rights to drain irrigation runoff water from leased premises across Licensee's lands to Weiss Reservoir, the Coosa River downstream of Weiss Dam, or the inland lake for the purpose of developing and operating a containerized nursery. Licensee would retain a buffer strip along the intake canal, a strip about 200 feet wide between the northern end of the parcel and Weiss Reservoir, and a 200-foot-wide area around the western end of Weiss Dam, for project purposes.

Nursery facilities would include the plants and containers, a small office building, a storage area for supplies, a truck loading dock, and pumping facilities for a spray irrigation system.

Maximum allowable withdrawal of water from Weiss Reservoir would be 1,000,000 gallons per day; but, on an average, withdrawal is expected to be less than 200,000 gallons per day.

It is estimated that the net loss of water from irrigation operations would average 89.6 acre-feet annually, due principally to evaporation.

Water from the intake canal would irrigate the area west of Livingston School Highway; whereas water from the inland lake and from the Coosa River below Weiss Dam would irrigate the area east of Livingston School Highway. Irrigation runoff from the respective areas would generally return to its source, as the highway would serve as a drainage divider.

Approximately 111 acres of the 146-acre tract of land were used as a spoil area during construction of Weiss Dam and the intake canal. The other 35 acres are used for growing pine timber.

Adverse environmental impacts which would result from the proposed construction and subsequent operation include (1) dust and noise levels in the area during construction; (2) excess irrigation water which would carry sediment, nutrients, and pesticides into project waters; and (3) the elimination of pine timber production on 35 acres of land.

Licensee reports that runoff from the proposed nursery would be controlled by appropriate grading to prevent erosion. Also, the Lessee would periodically sample the runoff to ascertain the presence of any pollutants. The proposed Lessee reports that its previous experience with this type of operation indicates that only a slight increase in nitrogen concentrations would occur in runoff water. Dust and noise resulting from construction would be minor and of short duration.

Comments on the proposed action were obtained from the U.S. Fish and Wildlife Service (FWS), the Heritage Conservation and Recreation Service (HCRS) and the Alabama Water Improvement Commission (AWIC). The HCRS interposed no objection to the proposed action. The FWS stated that the land to be leased has low wildlife value; however, if appropriate precautions are not taken during construction and operation of the nursery, the valuable Weiss Lake warm water fishery could by adversely affected by pollutants in

runoff water. The AWIC indicated that the impacts of the proposed action on water quality would be minor.

Licensee states that a permit will be obtained from the U.S. Army Corps of Engineers, pursuant to provisions of Section 10 of the River and Harbor Act of 1899, to install two pumping stations along the intake canal.

The Alabama Historical Commission, State Historic Preservation Office, concluded that the proposed action would have no adverse effect on any cultural resources included in or eligible for the National Register of Historic Places.

No existing or proposed project recreational facilities included in Licensee's proposed Exhibit R would be affected by the proposed action.

The expected environmental impacts of the construction of the proposed facility would be minor and of short duration, and the impacts of operation would be minor and largely mitigated by appropriate safeguards. Staff has been advised by the Atlanta Office of EPA that the runoff from the proposed nursery would be considered agricultural, and a NPDES permit is not required. For these reasons, approval of the proposed action would not constitute a major Federal action significantly affecting the quality of the human environment. Therefore, an environmental impact statement is not necessary.

Approval of this application is contingent upon acceptance of an obligation by the proposed Lessee to consult and cooperate with appropriate State and Federal agencies in developing and implementing remedial measures to prevent any degradation of the fishery resources of Weiss Reservoir or the Coosa River as a result of the facility's operation.

Public notice of the application was issued on November 16, 1978, with December 28, 1978, designated as the last day for filing protests or petitions to intervene.

A protest was received on December 18, 1978, from H. Paul Friesema, Associate Professor, Northwestern University. Mr. Friesema asserted that no action should be taken on the application until such time as an environmental impact statement is prepared. Staff's evaluation of the application discussed above, indicates that an environmental impact statement on this action is not required.

Licensee's proposed easement contains appropriate covenants with respect to preventing dangers to health, creation of a nuisance, compatibility with the recreational use of the project lands, control of erosion and protection of environmental qualities. The easement is made subordinate to project operation and Commission requirements, and further provides that Lessee shall cooperate with Alabama Power Company (Lessor) in complying with Federal, State, and local licenses, directives, and regulations with respect to the collection, storage, and disposal of solid wastes generated at and through public access and use of project facilities.

Staff analysis has determined, subject to the conditions imposed herein, that approval of the request for a change in land rights at FERC Project No. 2146 is in the public interest. It is ordered:

(A) The application filed by Alabama River Company on May 26, 1978, for Commission approval of a change in land rights for the Coosa River Project No. 2146 is approved, in accordance with the proposed instrument of conveyance as modified by the conditions of this order.

(B) The instrument of conveyance shall contain the following covenants which shall run with the land:

(1) During development and operation of the proposed nursery and appurtenant facilities, the Lessee shall continue to consult and cooperate with the U.S. Fish and Wildlife Service (UFWS), the Alabama Department of Conservation and Natural Resources (ADCNR), and the Alabama Water Improvement Commission (AWIC) in implementing measures to control erosion and prevent increased turbidity and resulting siltation in Weiss Lake. Lessee further agrees to develop in cooperation with USFWS, ADCNR, and AWIC a contingency plan to control any accidental spills of fertilizers, pesticides, herbicides, or other chemicals used in the nursery operation. Lessee further agrees that if fishery resources are degraded by the nursery operation, the Lessee will consult with and cooperate with the USFWS, ADCNR, and AWIC in developing and providing remedial measures.

(2) Lessee shall take appropriate steps to ensure that no effluent shall violate Alabama Water Quality Standards and the use of pesticides and herbicides will comply with applicable Federal and State laws, including any requirements for application by or supervised by certified applicators.

(3) The Lessee will take all necessary and appropriate precautions during construction to avoid or minimize conflict with the natural, historic, and scenic values and resources of the project lands and water.

(C) Licensee shall file a copy of the instrument of conveyance within 60 days of its execution.

(D) This order shall become final 15 days from the date of its issuance unless a petition appealing it to the Commission is filed under Section 1.7(d) of the Commission's Regulations, 18 CFR 1.7(d) (as amended, August 14, 1978). Failure of the Licensee to file such a petition shall constitute acceptance of this order.

-Footnote

'Authority to act on this matter is delegated to the Director, Office of Electric Power Regulation, under Section 3.5(g) of the Commission's Regulations, 18 CFR 3.5(g) (as amended August 14, 1978 FERC Statues and Regulations ¶ 30,016).

[162,057

Working capital is $79,100.

The original cost of land and rights-of-way owned and used by the carrier on December 31, 1977 are $278,761 and $169,530, respectively. The original cost of rights-of-way lease from River Pipe Line Company is $37,785.

Reference is made to Appendix 4, Ajax Pipe Line Corporation, 50 Val. Rep. 1, for a statement of the methods employed and of the reasons for the differences between the various cost values reported.

In computing a single sum value, the Commission places primary emphasis on two elements of cost, namely cost of reproduction new and original cost to date. These two elements are weighted together based on each one's percentage to the sum of the two. The weighted figure is then depreciated to reflect the value of the property in its present condition by applying a condition percent factor derived from a ratio of cost of reproduction new less depreciation value to the cost of reproduction new value. The resultant depreciated value is increased by 6 percent to reflect an amount for going concern. To this increased value an amount is added for the present value of land, rights-of-way and working capital. This final figure is the total single sum value of the carrier's properties that are used and useful for common carrier purposes.

The details respecting the figures here reported are on file in the valuation records of the Commission. These details are referred to for greater particularity as to to the matters herein stated. The Board finds:

1. After careful consideration of all facts herein contained, including appreciation, depreciation, going-concern value, and all other matters which

1. The property owned or used by the carrier as of December 31, 1977 is hereby valued as indicated in the above table. On or before 30 days from the date of service of this order, any person entitled to do so under Section 19a of the Interstate Commerce Act may file with the Secretary of the FERC written protest concerning this valuation, such protest to specify in detail the findings concerning which protest is made and the reasons for such protest.

2. If no protest is filed within the period specified and if no petition for leave to intervene has been filed as provided by the notice published by the Federal Energy Regulatory Commission on October 12, 1978, 43 Fed. Reg. 47000, and the proceeding is not reopened for any other reason, these findings will be the findings of the FERC, and the valuation as found will be final.

[162,05?