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FIRST COPY
Toledo Bend Bi-State Alliance
P.O. Box 873
Many, Louisiana, 71449
March 8, 1998
Hon. Finly S. Stanley
President, Toledo Bend Project Joint Operations Board
C/O P.O. Box 1423
Leesville, LA. 71446
Dear Sir,
We are concerned that a fair and complete study be conducted in the matter of establishing 168’ mean sea level as the minimum level to which Toledo Bend Reservoir will be drawn to produce power. Of course with three exceptions: to meet the minimum down river flow requirement, to prevent a brown out and to inspect the dam as required by the F.E.R.C. As you may recall, over 6000 citizens, primarily from Louisiana and Texas, signed a petition requesting this change.
The Toledo Bend Project Joint Operations Board of Directors commissioned a study by Brown & Root, which was, to our understanding, to be an independent evaluation of the capability to establish 168’ mean sea level as the minimum level at which Toledo Bend was to be operated under normal circumstances. A copy of Brown & Root’s proposal is attached.
To accomplish this study, we feel, Brown and Root should simply be provided a copy of the Power Sales Agreement, water data, e.g. inflow and releases, and a copy of the current Operating Guide Rule Curve. Brown and Root personnel should then conduct their study and present conclusions. The Toledo Bend Project Joint Technical Board (Joint Technical Board) should limit their input to providing requested data, being very careful not to interpret the data.
Our concern began when reading the minutes of the Kick-Off Meeting of January 26, 1998. Copy attached. Mr. Bill Lewis President of the South Toledo Bend Civic Association, and I had requested permission to attend this meeting. Our request was denied by Ms. Curtis, Director of the Louisiana Sabine River Authority.
Concern was again aroused when the question was asked at the February meeting of the Louisiana SRA Board of Commissioners if the Brown & Root study included the Power Sales Agreement. The answer by the SRA attorney, Bill Boone was that he did not know and deferred to Barton Rumsey, Engineer for the La. SRA, who stated the Power Sales Agreement was not part of the Brown & Root Review. However, it was determined by reading Brown & Root’s proposal, contractual requirements were definitely to be part of the proposed review. Failure by Brown & Root to review the Power Sales Agreement would invalidate any study made by them of this problem.
In Para. 3 of the Minutes of the Kick-Off Meeting the following was discussed:
A. Is the contractual power requirement a monthly commitment?
The Power Sales Agreement includes an annual commitment, which has been translated into a monthly commitment by the Operating Guide Rule Curve.
Comment: The answer is stated in a manner which may make the average person believe the Operating Guide Rule Curve is a part of the Power Sales Agreement. There is absolutely no mention of the Operating Guide Rule Curve in the Power Sales Agreement. The Power Sales Agreement requires the production of 65,700,000 Kilowatt Hours during the period of May through September. (see Para. 5.05 of the Power Sales Agreement). This is an annual requirement and nowhere in the Power Sales Agreement, that we can find, is it stated that power produced from water released during this period will be accounted for on a monthly commitment basis. However, the answer to Brown & Root’s question indicates that monthly accounting of power production is presently done, required or not.
B. Is power produced in excess of the contractual agreement considered prime?
No, so any power generated in excess of the monthly prime does not count toward the monthly prime of the following month.
Comment: Again, this is how power production is presently accounted for, but it is not a contractual requirement of the Power Sales Agreement. The Power Sales Agreement, in part, states in Para. 5.05 "Electric Generation shall be scheduled in the same months that the water is made available except that upon request of the Companies and with the agreement of the Authorities, such water may be stored in the reservoir and released for power generation at some later date." I believe all water used to produce power in the Peaking Period can and should be counted to meet the annual requirement of 65,700,000 kilowatt hours. Brown & Root should independently interpret the Power Sales Agreement and the Operating Guide Rule Curve, not use the present Joint Technical Board interpretation of the two documents. To the best we can determine, the Operating Guide Rule Curve is an internal procedure of the SRA, not a contract between the SRA and the Companies. However, the Operating Guide Rule Curve has apparently, over the years, become thought of as a contractual document.
C. Is the only relief from the contractual power requirement when the Reservoir level is below 162.2?
Yes, although the lake has never been that low.
Comment: We are unable to find words in the Power Sales Agreement which requires the Reservoir to be taken to 162.2’ msl to produce the annual power requirement. The closest wording found to such a requirement is in para. 5.05., which, in part, states "Authorities will normally operate the reservoir with water surfaces between elevation 162.2 mean sea level and 172.0 mean sea level. Insofar as practicable, the Reservoir will be maintained above elevation 169.0 mean sea level." And, "Subject to the availability of water, Authorities will provide sufficient flow during the annual Peaking Period for the generation of at least 65,700,000 kilowatt hours." However, the Operating Guide Rule Curve allows the reservoir to be taken to 162.2’ mean sea level to meet the 65,700,000 Kilowatt Hour requirement. Again, unless it is a separate contract, the Guide Rule Curve is not part of the Power Sales Agreement and should not have the force of a contract. As previously stated, this is something Brown & Root should independently determine.
We believe, based upon the Power Sales Agreement and water data, Brown & Root should independently raise and answer questions such as but not limited to the following examples: Who determines when and how much water is available for power generation? How much water is counted towards Peak Period Power Production and when? What contractual requirement, if any, prevents counting all power produced in the Peaking Period as Prime Power? Under the present Power Sales Agreement, can the Operating Guide Rule Curve be modified to make 168’ msl the minimum level for routine generation of power? If not, how should the Power Sales Agreement be modified?. Should the Peaking Period be changed by mutual agreement with the Companies? If so, what months are recommended to be the new Peaking Period? Again, questions such as these, we believe, are what Brown & Root is being paid to formulate, answer, and then use the information to develop their recommendation.
It is felt, Brown & Root should provide to the Toledo Bend Project Joint Operations Board an independent interpretation of the Power Sales Agreement, the Operating Guide Rule Curve and water data. Recommendations to meet the 168’ msl goal should be based on Brown & Root’s independent study. The Joint Technical Board should review Brown & Root’s study after it is completed. Comments by The Joint Technical Board should be independent of the Brown & Root study and sent to the Joint Operations Board separately. Their comments should not be incorporated in the Brown & Root report as is stated in Task 3-Prepare Technical Report, of the Kick-Off Meeting notes. This study, we believe, will be another classic case of public funds wasted if Brown & Root’s report is not based upon independent findings.
Please note, every detail of the Kick-Off Meeting notes is not discussed here. The notes are, as previously stated, attached for your convenience.
We look forward to your answer and thoughts on this matter and I am available to discuss these concerns with you at anytime. My card with telephone number is enclosed.
Sincerely,
Larry E. Kelly, Chairman
Copies:
Board of Commissioners Sabine River Authority of Louisiana
Board of Directors Sabine River Authority of Texas
Mr. Sam Collins, Exec. VP & Gen. Mgr., Sabine River Authority of Texas
Ms. Linda Curtis, Director, Sabine River Authority of Louisiana
Louisiana State Sen. James David Cain
Louisiana State Rep. Joe Salter
Texas State Sen. Drew Nixon
Texas State Rep. Wayne Christen
Mr. W. B. Lewis, Pres. So. Toledo Bend Civic Association
Board of Councilors, Toledo Bend Bi-State Alliance
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