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A Brief History of The Central Nebraska Public Power and Irrigation District

-- Summary of Central's Origins, Development and Operations --

PART I ----- PART II

"Let us be grateful to that host of pioneers who dared to dream and who, because of their firm beliefs and continuing labors, brought about the fulfillment of those dreams. Surely because of those pioneers, the citizens of The Central Nebraska District, the State of Nebraska, and the Nation as a whole are endowed with a rich heritage for which all must be eternally thankful.

"May we who live today and the generations who follow dare to dream and to labor with that greater faith for the future of an area that once was part of the "Great American Desert."


-- From Central's 25th Anniversary Booklet published in 1958

Irrigation System Modernization and Rehabilitation

Beginning in 1957, Central instituted a wooden structure replacement program which was unique to the irrigation industry. Within 10 years, 3,000 original wooden structures were replaced with pre-cast concrete structures. The new structures were cast in segments and installed during the fall and winter. The segments were bolted together and utilized gaskets similar to those used in paving projects as the sealing agent.Structures

The system was patented and irrigation projects from around the world utilized this process which saved enormous savings of money, time and labor over the previous practice of casting the structures in place.

Central undertook a major rehabilitation project when it initiated planning and design work on the E65 Canal system in 1969. Senator Curtis of Minden led efforts to obtain a loan from the federal government necessary to fund the project. As a result, Central obtained a $10 million interest-free loan from the Bureau of Reclamation in 1974 to invest -- along with $2.5 million in District funds -- in the complete rehabilitation of the E65 system.

The Elwood Reservoir and the Curtis Dam and Pump Station were a major part of the rehabilitation project. The dam, a compacted earth-fill structure containing approximately 520,000 cu. yds. of material, is 100 feet high and 2,460 feet long. Its face is protected by soil cement riprap. The pump station houses three 300-hp pumps which move water through a 96-inch conduit into the reservoir.

The reservoir can release up to 300 cfs of water to supplement the E65 irrigation system’s diversion capacity. The reservoir has an operating capacity of 24,715 acre-feet and a total capacity of more than 40,000 acre-feet. Water is pumped into the reservoir and then allowed to run out by gravity when needed.

In addition, Elwood Reservoir has become an excellent fishing lake. Only wakeless boating is permitted and development along the shore is prohibited, thus allowing fish and wildlife to thrive in the habitat created by the lake. Several species of game fish are stocked in the lake and the surface has become a favorite stopping place for thousands of migrating waterfowl each spring and fall.

The E65 main canal was enlarged to raise its capacity from 280 cfs to 638 cfs. In addition, laterals were enlarged and compacted, approximately 70 miles of pipelines were installed and control structures were modernized and fitted with supervisory control equipment. Pipelines replaced many old laterals and most of the remaining laterals were reconstructed with compacted earth linings. The process involved moving more than a million cubic yards of dirt during work on 26.6 miles of canal.

While the rehabilitation work proceeded on the E65 system, Central applied for and received a second Small Project Loan for $10.3 million from the Bureau of Reclamation in 1979. This loan and $2.5 million in District funds were used for the rehabilitation of the Phelps Canal system. The project involved the installation of 17 new structures and cleanout, compaction, reshaping and erosion protection on 39 miles of main canal. In addition, more than half of the 250 miles of laterals were completely replaced, rehabilitated or improved by 1986.

Work continues as funds become available to improve the remaining small laterals and structures not included in the main project. Several small, inefficient laterals wereCanal Lining abandoned in favor of serving irrigators in those areas with District wells. Finally, many of the Phelps Canal structures were fitted with supervisory control capability.

Central completed an improvement project on the E67 Canal in 2003. The project replaced almost all of the E67 Canal system's open laterals with 18 miles of buried pipeline and 2.8 miles of membrane lining in the head end of the main canal. The $2.7 million project will provide two-week delivery rotations (rather than the three-week rotation that had been in place since the canal was added to Central's system in 1954), and will reduce diversions into the canal by 25 to 30 percent.

Conjunctive Use

An important part of the rehabilitation projects was the attention given to designing, incorporating and improving the “conjunctive use” aspect of Central’s system.

Within the context of Central’s system, conjunctive use is the recognition of the hydrologic relationship between surface water irrigation and ground water resources and theGroundwater Map effective, efficient use and management of both resources to produce sustainable social, economic and environmental benefits. In its Strategic Plan, conjunctive use is an important part of Central's integrated water resource management objectives. The Strategic Plan states that “Central will prepare an economic and technological analysis of conjunctive uses of water resources supporting a fair and equitable price for ground water recharge,” and “will continue to monitor and evaluate ground water levels throughout the service area for the purpose of sustaining recharge benefits of the irrigation system and addressing possible detrimental effects.”

During the planning stages for the E65 rehabilitation project, computer ground water modeling studies of the system resulted in a design that provides recharge where ground water development (irrigation wells) is heavy and a lined system, or pipelines, where irrigation comes mainly from the surface system. The result has been a generally stable water table beneath and adjacent to Central’s service area.

The District’s efforts marked the first time in Nebraska that an irrigation system was designed to address the water supply and the needs of both surface and ground water irrigators. Central is committed to the development of improvements in the area of conjunctive use. Central personnel monitors a system of 137 observation wells throughout the service area, enabling the District to compile the necessary data for continued evaluation of ground water levels.

Data from the U.S. Geological Survey and the Conservation and Survey Division of the University of Nebraska-Lincoln show that the water table beneath Central’s service area has risen since pre-development by 10 feet to more than 50 feet. Similar data from counties just outside Central’s service area show just the opposite -- declines in the ground water table of five to more than 30 feet in the last 50 years (see Map 4).

In recognition of this relationship between surface and ground water, Central actively promoted legislation which would provide legal recognition of water rights for incidental underground water storage and recovery. Central’s application to the Nebraska Department of Water Resources for a water right pertaining to incidental ground water recharge for areas in Gosper, Phelps and Kearney counties was approved in 1986 (known as the U-2 application). Similar water rights for portions of Lincoln, Dawson and Frontier counties were approved in 1989 (U-12). As mentioned earlier, more than 310,000 acres irrigated by wells in these areas receive documented recharge benefits from Central’s system.

Canaday Steam Plant

The Canaday Steam Plant, a 100-megawatt natural-gas-fired electric generation station, was completed and placed into service on May 31, 1958. Built at a cost of $15.5 million, the plant was built to fill a void in Nebraska's electrical generating ability in the late 1950s and 1960s. The plant site -- southeast of Lexington near Central's Supply Canal -- was selected because of the easy access to water to cool the plant's condensers and because it was near existing natural gas pipelines.

The plant was automated in 1973, a process that reduced the need for plant operators from four per shift to two. A data acquisition system that monitored important plant functions was installed to enable the plant to operate more efficiently. More automation was installed in 1991 and today almost all operations are done by computer, replacing pneumatic operations with electrical operations.

As other power plants were constructed in Nebraska, Canaday's on-line time gradually declined in the 1980s. The plant was placed in layup status in October, 1994 and sold to the Nebraska Public Power District in March, 1995. The plant now operates as necessary to meet demands for power.

Kingsley Hydroplant

In 1974, during an oil embargo by the Organization of the Petroleum Exporting Countries, the CH2M Hill engineering firm reported to the boards of directors of Central and NPPD that, "... the dramatic increase in fossil fuel costs over the past year has greatly improved the feasibility of a hydroplant at Kingsley Dam. In fact, the project now appears to have sufficient merit so that we are recommending starting design rather than preparing a feasibility study to refine the results of a 1973 reconnaissance and Kingsley Hydroreport."

The two Districts agreed and preliminary design work on the plant started later that year. Central applied to the Federal Energy Regulatory Commission in 1979 for approval to build the plant. Tri-State G&T of Denver and the National Wildlife Federation intervened to object to the proposed plant, but later withdrew their objections. Negotiations between Central and NPPD for sale of the power were completed in 1980 and construction began in the fall of 1981.

An economic recession at the time had slowed construction and industrial production. The slowdown contributed to keen competition among manufacturers of electrical components and construction companies, which resulted in bids that were well below engineer's estimates. Instead of a $60 million plant, Kingsley was constructed at a cost of just over $49 million. Another $13 million was saved during construction of the plant as a result of financing arrangements with NPPD related to the bond market.

The plant was dedicated on Oct. 17, 1984 and went on-line in early November, eight months ahead of schedule.

The immense spray of water emitted through the Howell-Bunger bypass valve is a noted feature of the plant. Originally installed as a means by which water could be released through the plant without running it through the turbine, the bypass valve is now used on a regular basis during the summer to aerate the water entering Lake Ogallala and maintain the dissolved oxygen level in the water for the benefit of the lake's trout population.

Operation of the hydroplant, like other Central hydroplants, is controlled from the Gothenburg Control Center.

History in the Project Area

The Supply Canal runs through territory rich in Nebraska history. The Oregon Trail reached the Platte River at the site of Fort Kearny north of the present city of Minden. The route of the Supply Canal roughly parallels the Oregon Trail as it followed the south bank of the river to the confluence of the North and South Platte Rivers near the city of North Platte. The trail continued along the south side of the South Platte River to a site near Big Springs where it crossed the river on its route to the North Platte River at Ash Hollow.

The stretch of the Platte Valley between the headgates of the Supply Canal and the headgates of the Phelps Canal is rich in history. Historical markers and monuments along the roads in this area mark the route of the Oregon Trail and the Pony Express, sites where Pony Express stations once stood and the site of the first Masonic Lodge in Lincoln County.

Another marker can be found on a county road just north of the Supply Canal’s Cottonwood Canyon Lake near Maxwell. A stone soldier in 1860s-era military uniform stands guard over the site of old Fort McPherson, one of the military outposts established to protect travelers along the Oregon Trail and settlers throughout the area.

Originally established in 1863 as Cantonment McKean, the outpost was located at a strategic point on the Oregon Trail. It was the on the route of the first transcontinental telegraph line, a stop-over point for stagecoach lines and the Pony Express and near the tracks of the Union Pacific Railroad. In 1864 the name of the outpost was changed to Fort Cottonwood, a name taken from nearby Cottonwood Canyon, which was notable for its growth of trees (trees were rare on the prairie), a flowing spring and as a favorite camp site for Indians traveling through the valley. In 1866 the fort was renamed for James B. McPherson, a U.S. major general killed during the siege of Atlanta in the Civil War.

Fort McPherson eventually became the base for five companies of cavalry. The fort itself was not the stockade-type enclosure popularized in Hollywood westerns. Five barracks -- two were constructed of logs, the other three were frame structures -- were arranged in a quadrangle which was 800 feet long and 560 feet wide. The grounds of the military reservation covered 19,500 acres. The cavalry troops stationed there were involved in a number of actions against Indians, including a military response to attacks in the Platte Valley that started with the “Plum Creek Massacre” on Aug. 6, 1864. Nine men in a freight wagon train were killed and two women and two children were taken captive in the attack which occurred near the Platte River in northwest Phelps County.

The Cheyenne, Arapahoe and Brule launched concerted attacks on stagecoaches, emigrants' wagon trains, stagecoach stations and ranches all along the central and west Platte Valley in 1864-65 until the army could halt the raids.

The U.S. Cavalry maintained a presence at the fort until 1880 when it was officially abandoned. The U.P. Railroad had been completed in 1869 and military actions against the Indians, particularly in 1876-77, had broken the power of the Plains Indians and all but ended the threat of attacks against settlers. In 1887, the lands of the reservation were transferred from the War Department to the Department of the Interior.

Fort McPherson National Cemetery was established in 1873 near the site of the fort. There have been almost 6,000 burials at the cemetery, including veterans of the Indian, Civil, Spanish-American, Korean and Vietnam wars as well as both World Wars. Three Medal of Honor recipients are interred here, as are the remains of 584 unknown soldiers.Ft. McPherson

The cemetery is also the final resting place for 28 soldiers killed in the “Grattan Massacre” which occurred eight miles east of Fort Laramie in August, 1854. Soldiers under the command of Lt. John Grattan were summoned by members of a passing Mormon wagon train to retrieve a cow that had wandered from the wagon train into a nearby Indian village where it was killed and butchered. Lt. Grattan arrived with his soldiers and unsuccessfully attempted to discover who was responsible for killing the cow. As a result, in what might be termed an ill-advised over-reaction, Lt. Grattan ordered his men to open fire, killing the village chief. A brief, but furious battle erupted during which Lt. Grattan and all 28 of his men were killed.

Originally interred at Ft. Laramie, the bodies were exhumed from their graves in Wyoming after Ft. Laramie was abandoned in 1890 and re-interred in a common grave at Fort McPherson cemetery. Lt. Grattan is buried at Ft. Leavenworth National Cemetery in Kansas.

Another historical site, Sioux Lookout, lies just south of the Diversion Dam. Indians were known to use the bluff, which affords a view for long distances up and down the Platte Valley, to spot travelers on the Oregon Trail. Prior to the arrival of white settlers, the Pawnee Indians used the bluff to keep watch for their Sioux enemies until the Sioux drove the Pawnee out of the Platte Valley.

The Oregon Trail reached the Platte River at the site of Ft. Kearny north of the present city of Minden. It then followed the south bank of the river through the Fort McPherson area. At the confluence of the North Platte and South Platte Rivers, the trail followed the south bank of the South Platte River to a site near Big Springs. Here it crossed the South Platte River and the tableland and descended to the North Platte River at Ash Hollow near the present town of Lewellen.

Ash Hollow is an important historical site for several reasons. It was difficult to get down to the valley from the high tableland and the descent was named “Windlass Hill,” descriptive of the manner in which the covered wagons were lowered down the steep incline (a windlass is a simple winch). After reaching the valley floor, the pioneer travelers stopped to rest their stock and make necessary repairs. Good supplies of wood and water were readily available. A log cabin built by trappers around 1845 became an unofficial post office with people writing messages and leaving them to be picked up and transported by the next traveler going in the opposite direction. Archeological discoveries of artifacts from ancient cultures indicate that Ash Hollow was a favorite gathering place for primitive man long before the Oregon Trail.

It is in this area that a significant battle with Indians took place in 1855. After the Grattan incident, the Indians terrorized travelers along the valley. General William S. Harney was sent to restore peace with a force of 1,200 men. His soldiers decimated a large band of Indians near Ash Hollow in what is sometimes called the Battle of Blue Water (it occurred about six miles northwest of Ash Hollow on Blue Water Creek). This battle and General Harney’s subsequent harsh treatment of the Indians caused a great deal of trouble until 1876 when the Sioux had been driven from the region and their leaders were either in Canada or confined to reservations.

Ogallala, eight miles south of Kingsley Dam, was one of the country’s most important “cow towns” from about 1874 to 1884. During its 10 years as a trail town, Ogallala was a more important cattle shipping point and outfitting center than Dodge City, Kansas. In addition, it soon developed as an important stop on the new trails taking cattle up to the Dakotas and Montana. Being a rough-and-tumble trail-end town where cowboys let off steam built up during months on the trail, it naturally had need for its own “Boot Hill” cemetery. Seventeen homicides or otherwise violent deaths were recorded in Ogallala during these 10 years, during which the town’s permanent population never exceeded 100 people.

In 1878, as the Cheyenne Indians made their famous flight from Oklahoma Indian Territory to the north, the settlers and the U.S. Army tried to intercept them. A major line of defense was along the Union Pacific railroad, but the Indians slipped through the line near Ogallala and spent several months in the Sandhills. One part of the group was finally taken to Fort Robinson, while the others escaped to Montana.

The Road to Relicensing: Summary of the FERC Relicensing Process

On June 21, 1984, the Central filed an application with the FERC for a new license to operate its hydroelectric project. The District was subsequently notified on Dec. 7, 1984 that the application was deficient (it lacked sufficient studies on the project's impact on endangered species) and was given a 90-day extension. However, due to the complex, technical nature of the required studies, Central was granted additional time to conduct the studies. A new deadline was set for May 5, 1990 and the necessary documents were filed on time.

While the studies were being conducted, Central’s original 50-year license expired in 1987. According to the Federal Power Act, the FERC is required to issue an annual license under the conditions of the existing license until a new license is issued. Central has been operating under these interim licenses since the expiration of its long-term license.

The FERC issued its first Draft Environmental Impact Statement in early 1992, but it drew criticism because of the high costs to farmers and rate-payers that would have resulted from implementation of proposals in the document. Despite aspects of the draft statement that were called “infeasible, excessive or too expensive,” supporters from Central’s area indicated general satisfaction with the document if some of the deficiencies could be corrected. However, representatives of wildlife groups criticized the document and demanded that it be completely redone to make more allowances to their concerns.

In June, 1992, the Environmental Protection Agency issued its opinion of the DEIS, saying the document did not “adequately assess the potentially significant environmental effect, nor does it identify and analyze all reasonable alternatives.” The EPA recommended that a new DEIS be prepared.

Subsequently, Nebraska parties to the relicensing process, with the leadership of Governor Ben Nelson, developed a relicensing plan centered around a “block-of-water” concept or environmental account. The plan would replace the rigid river flow proposals in the FERC’s DEIS with a more flexible plan which sets aside a block of water in Lake McConaughy for wildlife habitat purposes. An environmental account manager (originally the Nebraska Game and Parks Commission, but later designated to be a representative of the U.S. Fish and Wildlife Service) would determine when and how much water to release from the environmental account for wildlife purposes.

Governor Nelson signed the plan and it was subsequently endorsed by Central’s board of directors. The plan was submitted to the FERC on Oct. 1, 1992. Other parties, including the Nebraska Water Users, the Big Mac Sportsmen’s Club and NPPD also endorsed the plan.

On March 30, 1994, the FERC released its revised DEIS. FERC staff concluded that a modified Nebraska Plan “offers the best overall balance among the resource values, while providing adequate protection for threatened and endangered species.” However, Central was deeply concerned by the costs associated with mitigation and enhancements required by the RDEIS.

Nebraska, Wyoming and Colorado entered into a Memorandum of Agreement with the U.S. Department of the Interior in June, 1994 to develop a basinwide solution to sharing responsibility for protecting endangered species along the Platte River. The process nearly collapsed in January, 1996 after federal officials criticized the states' plans for providing water for endangered species habitat.

The following month, the FERC released its biological assessment of the Platte River projects and began the consultation process associated with the Endangered Species Act. The Nebraska Plan was still listed as the FERC's preferred licensing alternative.

In December, 1996, the FWS issued a draft biological opinion of the FERC's biological assessment. The FWS found jeopardy for endangered species and recommended two "reasonable and prudent" alternatives for resolving ESA issues. One of the alternatives gives consideration to an agreement between the three states and Interior. The other would have forced Nebraska's power districts to shoulder a disproportionate share of the burden for providing water and habitat for endangered species.

In May, 1997, the states and Interior reached an agreement on a basin-wide plan for endangered species. A Cooperative Agreement that lays out the approach to providing money, land and water to meet endangered species' habitat needs was subsequently signed on July 1, 1997.

On January 15, 1998, the parties involved in negotiations over federal license conditions announced that a settlement had had been reached that covered all fish and wildlife-related issues connected with the relicensing of hydroelectric facilities operated by Central and NPPD. The Cooperative Agreement between the three states and the federal government was an important part of the settlement reached by Central, NPPD, the Whooping Crane Trust, National Audubon Society, Nebraska Water Users, the states of Colorado and Wyoming and the U.S. Department of the Interior.

Fourteen years of effort culminated on July 29, 1998 when the FERC approved the relicensing settlement agreement and issued a new 40-year license to the Central District. The settlement is an important part of comprehensive water resource management and endangered species habitat protection in the Platte River basin. The new license is part of an integrated approach to managing water in the Platte basin that provides regulatory certainty to Central and its customers and allows adaptive management in response to new information about issues involved in the relicensing and water resources management process.

FERC Chairman James Hoecker said, "All those who participated in achieving this extraordinary agreement should take pride in this far-reaching settlement. It is the result of a great deal of hard work and demonstrated good will and illustrates the growing possibility of reaching settlements in cases where there are two or more states involved and many interests to be protected."

The effort to develop a recovery implementation program by parties to the Cooperative Agreement required a extension to the original term of the agreement, which expired on June 30, 2000. Because of the complexity of the issues and several new issues that developed during the process, the three states and the federal government agreed to extend the term of the Cooperative Agreement to June 30, 2003.



Water-related issues will continue to be controversial. Just as early settlers in the “Old West” fought over the possession of water holes, streams and springs because, “This here water hole’s not big enough for the both of us,” so do the battles over water continue today. Although the reasons may have changed and the battles take place in the court room instead of on the dusty plains, disagreements over how water resources are allocated and utilized are not likely to abate soon.

Central intends to move forward in the area of integrated water management. As outlined in the its Strategic Plan and previously mentioned in this booklet’s Introduction, it is Central’s goal to continue to “serve the agricultural-based community in south-central Nebraska by protecting and utilizing in a sustainable and ecologically balanced manner all of the natural resources available to us to provide reliable and reasonably priced surface water irrigation and ground water recharge while producing electric power and preserving and enhancing our quality of life and the natural environment in which we live ... It is important that these activities be undertaken with the abiding conviction in, and understanding of, our overriding obligation to be good stewards of the region's environment and its land and water resources.”

RETURN TO PART I

Groundwater Map Structures Kingsley Hydro Canal lining Ft. McPherson

The Central Nebraska Public Power and Irrigation District
415 Lincoln Street , P.O. Box 740
Holdrege, Nebraska 68949
Phone 308-995-8601
For additional information, contact: WebMaster

(Updated 4/17/08 )

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