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LAND AND SHORELINE
MANAGEMENT PLAN

December 2002

Volume 1
Sections 1 through 4


KINGSLEY DAM PROJECT
(FERC Project No. 1417)


The Central Nebraska Public Power and Irrigation District
Holdrege, Nebraska

NOTE: The December 2002 Plan
was Approved on March 4, 2003 by the
Federal Energy Regulatory Commission


The Central Nebraska Public Power and Irrigation District
FERC Project No. 1417


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TABLE OF CONTENTS


Executive Summary

Organization of the Plan

Terms Used in this Plan

Section 1 - Introduction

A. Overview
B. Project Description
C. Purpose of the Land and Shoreline Management Plan


Section 2 - Planning and Consultation Process

Section 3 - Shoreline Management / Responsibilities And Activities

A. Central’s Responsibilities in Developing a Shoreline Management Plan
B. Central’s Shoreline Management Activities at Plan Inception


Section 4 - Land and Shoreline Use

A. Land Use Classifications
B. Lake McConaughy
C. Lake Ogallala
D. The Supply Canal System / Lincoln County
E. Jeffrey Reservoir
F. The Supply Canal System / Dawson County
G. Gallagher Canyon Lake
H. Plum Creek Canyon Lake
I. Johnson Lake
J. The Supply Canal System / Gosper County

APPENDICES



Executive Summary

Central Nebraska Public Power District operates the hydropower generating facilities associated with Central's Kingsley Dam Project subject to the Federal Power Act and associated regulations and pursuant to the express terms and conditions of Central’s Project license issued by the Federal Energy Regulatory Commission in 1998. Central’s responsibilities include: irrigation, power generation, public recreation, shoreline and land use management, natural resource conservation, environmental protection, and public land stewardship. Central is obligated to comply with the terms and conditions of its FERC license. Those license conditions establish limitations and criteria and require specific actions and approvals that directly affect Central’s administration of the lands it owns within the FERC Project Boundary, which can be roughly described as a line surrounding all of the project reservoirs, canal, dams, and other critical project equipment and facilities.

This Plan was developed to meet Central’s responsibilities and objectives as a FERC licensee and as a landowner. For that reason, the Plan addresses lands within Central’s Right of Way, that is, lands in the Project vicinity owned by Central, as well as those lands which are located within the defined FERC Project Boundary which is shown in the Project FERC license documentation and is evident on the maps in this Plan. By this definition, Central’s “Right of Way” as used in this Plan includes all the lands within the hydropower project boundary. When the term “Project Boundary” appears in this Plan, it refers only to those lands that are actually circumscribed by the boundary line in the FERC license.

The Plan sets forth goals, policies, general procedures and standards developed to support consistent land management actions and decisions and to function as an information and management tool for Central and for individuals, organizations or agencies that may wish to develop land or facilities or to change specific land uses, including recreation, within Central’s Right of Way. The Plan protects the existing resources, uses and values of the Project by establishing a comprehensive framework for the processes, procedures and standards to which Central will adhere when changes in recreation, land or shoreline use are proposed.

Central developed this Plan in active consultation with the United States Fish and Wildlife Service, the Nebraska Game and Parks Commission, and local governments and people. The Plan development process was initiated in mid-1999. Central met with interested parties including shoreline property and homeowners, local governments and resource agencies. Meetings were held to identify issues and concerns and to enable Central to consider the perspective of various interested parties. The Plan reflects the outcome of that consultation process. The agency comments regarding the initial draft Plan, and Central’s responses to them, are included in this document.

The Plan is organized into nine sections and three Appendices. Section 6 of the Plan is also designed to serve as the Project Recreation Report for FERC license compliance purposes and is separable from the rest of the document. The Plan discusses the process Central used to develop this Plan; describes and categorizes Project land uses at Plan inception; identifies development constraints and opportunities within the Project Boundary; defines Central’s fundamental land management philosophy and implementation strategies; and offers guidance on the standards for evaluating and conditioning authorizations for use of Central’s lands in the future. The Appendices to the Plan are intended to be supporting documents, not subject to the Amendment process. The reference information in the Appendices will be updated appropriately as changes occur over time.


In the Plan, Central describes the overall goals it has adopted to guide its land and shoreline management efforts as to:

· Ensure continued reasonable public access to the lands and waters of the Project.

· Provide for a diversity of public recreational opportunities throughout the Project.

· Protect and manage the significant existing natural and man-made resources of the Project, including environmental resources and recreation opportunities.

· Evaluate the potential impact of all proposals for land use change on surrounding Project and non-Project lands, and balance potential benefits and impacts with the benefits and impacts of existing uses.

· Evaluate all proposed changes in use and/or occupancy of Central’s lands to assure they are consistent with the purposes of protecting and enhancing the scenic, recreational, and other environmental values of the Project.

· Support and provide, where consistent with the other goals, economic development opportunities within the Project and region.


The Plan is based on the classification of land uses within the Project Boundary according to specifically developed categories. These categories reflect the unique land use patterns of this Project and are listed below.

"Concessionaire" – Includes those areas where either Central or the NGPC has leased or subleased land for the provision of public commercial recreational services.

"Open Space" – Includes all of those areas within Central's Right of Way that are open to public recreational access and are not designated for a specific recreational use, such as a state recreation area.

"Outside FERC Project Boundary" – This designation on the Land Use Maps refers to properties that lie outside the FERC Project Boundary that may be owned by Central or by private individuals. Their use may impact the lakes.

"Overlay Zones" – Overlay zones are classifications that overlay the existing land use of a site. Overlay zones generally indicate either a specialized use or protection of a land area for a specific reason and may imply an additional layer of regulation. The overlay zones shown on the land use maps include the Future Development Shoreline Facility/Services, Species Protection Zone, Day Use and Non-Motorized Vehicle Areas.

"Future Development Shoreline Facility/Services" - Areas likely, based upon the best available current information, to be considered for development of commercial or community marina or other facilities. Designation does not imply approval.

"Species Protection Zone" – This designation is an overlay zone, to be applied to land areas that merit special protection due to the presence of endangered, threatened or significant plant or animal species and/or their habitats. Regulations regarding the use of or development near, this designation will be developed through agency consultation subsequent to FERC approval of this Plan. Regulation requirements may range from general to very specific based on the species concerned and its use of the area.

"Day Use Area
- Areas designated as not available for overnight use. The Day Use Area overlay will be used on an "as needed" basis to address protection of specific areas for habitat, species, or cultural resources, conflicting land use issues, and other needs as they arise.

"Non-Motorized Vehicle Areas" - Areas accessible only on foot or by non-motorized vehicle. The Non-Motorized Vehicle overlay will be used on an “as needed” basis to address protection of specific areas for habitat, species, or cultural resources, conflicting land use issues, and other needs as they arise.

"Project Works" – This designation includes areas occupied by the dams, powerhouses, and other structures that are essential to Central’s operations and to which, due to safety, operational, or other constraints, public access may be legitimately restricted.

"Residential" – This designation includes areas of existing residential development either within or adjacent to Central's Right of Way.


The Plan also establishes the fundamental framework for furthering Central’s land and shoreline management goals in its day-to-day management of Project lands by implementation of the following general land management policies. These policies are discussed in Section 5 of the Plan

1. Facilities and Structures in Place at Plan Implementation

POLICY: Central will allow all legal and permitted structures and facilities in place before Plan implementation to remain in place until such time as the structure or facility becomes unsafe, needs replacement or requires major repairs (more than 50% of the physical structure or of its value, as determined by Central).

2. Leases Existing at Plan Implementation

POLICY: Central will manage specific parcels of leased land in accordance with the provisions of the leases in effect at Plan implementation, (as such provisions may be interpreted by the courts after all appeals have been exhausted), for the remainder of the lease term.

3. New Leases

POLICY: Central will enter into new leases when so doing supports providing a diversity of recreational opportunities, benefits wildlife or otherwise is consistent with or will enhance achievement of the objectives of this Plan.

4. New Structures and Facilities

POLICY: Central shall continue to permit new legal uses, structures and facilities when such uses, structures and facilities are in compliance with the Plan and with all applicable federal, state and local requirements.

5. Building Setbacks

POLICY: Central will require suitable setbacks from the shoreline for all future residential or commercial development on Project lands to promote reasonable public use and access to the Project lands and waters.

6. Shoreline Protection and Enhancement

POLICY: Central, where necessary, will support activities to protect shorelines from excessive erosion and will require its lessees, licensees, and permit holders to provide adequate shoreline protection on the land areas they use under the terms of a permit, lease, easement or other conveyance or other authorization.

7. Public Recreational Use Opportunity

POLICY: Central will continue to make the lands, shorelines and waters of the Project not subject to a lease open to the public for recreational use, except where operational, safety, environmental resource protection needs, or other uses are incompatible with public access or safety objectives.


8. Project Operations

POLICY: Central will retain ownership of all project property covered by the license, lands, shoreline and waters necessary to its hydropower, irrigation and related operations or will assure it has the rights to occupancy and use or necessary easements.

9. Environmental and Wildlife Protection

POLICY: Central will fully consider the protection of wildlife and endangered species and their habitats on Project lands in all land use and recreation management decisions and Plan implementation.


Organization of the Plan

The Plan is organized into the following sections:

Section 1. Introduction – The introduction to the Plan includes an overview of the regulatory basis for the Plan, a description of Central’s Kingsley Dam Project area, a basic discussion of the purpose of the Plan, and this general outline of the main elements of the Plan document.

Section 2. The Planning and Consultation Process – This section discusses Central’s overall approach to and schedule for the public and agency consultation used to develop the Plan.

Section 3. Shoreline Management / Responsibilities and Activities – This section describes Central’s regulatory and stewardship responsibilities for the Project and the roles and responsibilities of other agencies and local governments.

Section 4. Land and Shoreline Use – This section describes the project shorelines, land development and ownership patterns, development opportunities and constraints, proposed developments, and the process to obtain approval for a new development or a change in use on Project lands.

Section 5. Implementation Strategies – This section describes Central’s overall land and shoreline management philosophy, specific “Shoreline Management Strategies” and management standards and procedures.

Section 6. Recreation Plan – This section identifies existing and proposed public and private recreation opportunities within Central’s Project Boundary. This section is also intended to serve as the Project Recreation Report.

Section 7. Plan Amendments and Updates – This section discusses fulfillment of the requirements for periodic evaluation and reporting on the least tern and plover nesting protection, bald eagle nesting and roosting, and aquatic resource protection measures described in the license, the development and filing of updates to the Land and Shoreline Management Plan, and the specific procedures and consultation that will be undertaken to amend or modify the Plan once it has been initially approved by FERC.

Section 8. Public Comments and Agency Consultation – This section includes a summary of the resource topics and comments received from the agencies during consultation and raised at the public meetings. Summaries of the comments and recommendations received during formal agency review and the public hearings are also included, as is a discussion of Central’s response to those comments and recommendations. Copies of written comments or summaries of transcribed oral comments are included in Plan Appendix II.

Section 9. Maps and Illustrations - This section includes maps and drawings illustrating the resource utilization classifications,


Terms Used in this Plan

"Agency" – Refers to one or all of the following: Nebraska Game and Parks Commission (NGPC); the U.S. Fish and Wildlife Service, Grand Island Field Office (USFWS); and the U. S. Army Corps of Engineers, Kearney Office, (Corps).

"Canyon Lake" – Refers to the water bodies that were created by existing canyons during construction of Central’s Supply Canal system.

"Central" – Refers to the Central Nebraska Public Power and Irrigation District.

"Central’s Right of Way" – Refers to the boundary marking all of Central’s land ownership, both within and outside the FERC Project Boundary; also referred to as “Central ROW” on the Land Use Maps.

"Consultation" - Refers to the formal or informal process of review and comment of a proposal by interested parties, individuals, or state, federal, and local agencies. In many circumstances, approval of a non-project use of lands located within the defined boundary of a FERC licensed hydropower project cannot be made until comments are sought and considered through a specific consultation process.

"Conveyance" - As used in this document, refers to the transfer of a legal interest in land, either by easement, lease or in fee title.

"CRMP" - Refers to the Cultural Resources Management Plan for Central’s Project. The CRMP appears on Central’s website at CNPPID.com or may be requested from Central’s main offices.

"Encroachment" - As used in this Plan, refers to an unauthorized use of Central’s property. Central will take appropriate action to correct encroachments.

"FERC" - Refers to the Federal Energy Regulatory Commission, a federal government “agency” with jurisdiction over non-federal hydropower projects such as Central’s Kingsley Dam Project. FERC issued the license authorizing power generation at this Project, and has oversight over project operations as well as over Central’s administration of Project lands and waters.

"FERC Project Boundary" - Hydropower projects licensed by FERC include "all water-rights, rights-of-way, ditches, dams, reservoirs, lands, or interest in lands the use and occupancy of which are necessary or appropriate in the maintenance and operation of such unit."1 While Central owns the land on which the project is situated, FERC has jurisdiction over the use of that land if it is included within the Project Boundary, which is roughly a boundary line circumscribing the project features. Central’s Project Boundary is evident on the land use maps contained in this Plan.

"Leased Lands" – This designation pertains to the lands, inside Central’s Right of Way, leased for specific uses to federal, state or local units of government, individuals, organizations, or businesses. In some cases these uses are administered through subleases from NGPC. Examples of leases and leased lands are:

· "State Recreation Area Lease"
· "Wildlife Management Area Lease"
· "Concessionaire Lease"
· "Agricultural Lease"
· "Residential Lease"

"Local Governments" – The local governments referred to in this document are Dawson, Gosper, Keith and Lincoln Counties.

"Major Repair" - For the purposes of this Plan, major repair to an existing structure is defined as repair which Central regards as involving more than 50% of the physical structure or more than 50% of its value. Central reserves the right to make this determination. Major repairs are distinguishable from normal and predictable routine maintenance activities.

"NGPC" - Nebraska Game and Parks Commission, a Nebraska state agency.

"Permit" - As used in this document, a permit for use of project property is distinguished from other authorizations that involve a transfer of interest in the property. A permit allows the use of Central’s property for a specific and limited use and period of time and does not convey any legal interest in the land.

"Permit to Construct" – A permit issued by Central authorizing construction of structures along the shoreline or in the water, including boat houses and docks, permits for alteration of the shoreline including placement of rip rap or construction of retaining walls, and all other activities that involve construction or placement of materials on land, including submerged land, owned by Central. A sample Permit to Construct appears in Plan Appendix I. Central may amend the Permit format from time to time.

"Plan" – Refers to this Plan, the Land and Shoreline Management Plan required by Article 421 of Central’s FERC License.

"Project" – Refers to land, equipment, structures and facilities identified in Central’s FERC license and located within Central’s Project Boundary.

"Project Lands" – Include those properties Central owns that lie within the FERC Project Boundary defined by Central’s Project license. Any use of these Project lands is subject to federal oversight and compliance with all relevant federal, Nebraska state, and local laws and regulations, the provisions of the FERC license and its relevant implementing documents. These documents include but are not limited to:

· Land and Shoreline Management Plan and associated contracts and regulations,
· Cultural Resource Management Plan, and
· Plans or regulations for the protection of endangered species or habitat.
· Terms and conditions of specific permits and leases

"Project Waters" - Refers to the lakes, reservoirs, and canals included within Central’s Project boundary. Any use of project waters is subject to federal agency oversight and compliance with all relevant federal, Nebraska state, and local laws and regulations, the provisions of the FERC license and its implementing documents. Federal, state, and local navigational safety standards also apply to activities, facilities, and structures on these waters.

"Standard Land Use Article" - Article 422 of Central’s license. This license condition is generally included in all FERC hydropower licenses and defines Central’s obligations and the limits of its delegated authority to permit uses of or to convey interests in Project lands. The text of this Article appears in Plan Appendix I.

"State Recreation Area (SRA)" –Lands that Central has leased to the NGPC for public recreational use. Central’s lease terms provide that the land use shall be consistent with its obligations under the FERC license. Use of these areas is otherwise governed and restricted by NGPC regulations for SRAs.

"Supply Canal" –Central’s main canal system, which runs from a diversion dam on the Platte River east of North Platte to a return east of Lexington. The Supply Canal lies within Central’s Project Boundary.

"Wildlife Management Area (WMA)" – Lands that Central has leased to the NGPC for wildlife management. Public use of these areas is governed and restricted by NGPC regulations for WMAs.

Section 1 - Introduction

A. Overview

The Central Nebraska Public Power and Irrigation District (Central) is a political subdivision of the State of Nebraska, authorized as a "public power & irrigation district." Central is also a hydropower licensee of the Federal Energy Regulatory Commission (FERC), and operates the hydropower generating facilities associated with Central's Kingsley Dam Project No. 1417 (Project) subject to the Federal Power Act and associated regulations and pursuant to the express terms and conditions of the Central’s license issued in 1998. Central’s responsibilities include: irrigation, power generation, public recreation, shoreline and land use management, natural resource conservation, environmental protection, and public land stewardship. Central is obligated to comply with the terms and conditions of its FERC license. Two of those license conditions, designated as license Articles 421 and 422, establish limitations and criteria and require specific actions and approvals that directly affect Central’s administration of Project lands. In addition, Central is subject to other regulations and license conditions that more generally constrain its use and management of Project lands and waters.

Pursuant to Article 422 of its FERC license, Central has the authority delegated by FERC to authorize use or convey interests in Project lands in specific circumstances and under certain conditions identified in the Article. Central has continuing responsibility to supervise the occupancies and uses it authorizes and to ensure compliance with the terms of the authorization or conveyance. The terms of the license require Central to take any lawful action necessary to correct a violation of those terms. Authorizing uses or conveying interests in Project lands not specifically addressed in the Article requires prior consultation with interested agencies and prior FERC approval. This process can be very burdensome and time consuming for all concerned, but is not optional. Failure to comply with the criteria identified in the Article constitutes a violation of the Central’s license terms.

Central's properties throughout south central Nebraska provide numerous recreational, residential, and economic benefits. They offer diverse habitats that support the plant, animal and fish species found in the region, including species that are designated by state and federal agencies as threatened and endangered. The Platte River region also has a rich historical and cultural heritage, as evidenced by the numerous identified historical and archaeological sites. The entire area is increasingly attractive as a place for outdoor recreation, home sites and the support services associated with these activities. Continued regional growth and development and the gravitation of homeowners to waterside areas will place increasing demands on the lands and waters of the project. These lands and waters are a unique and valuable resource that, if managed effectively, can continue to provide hydropower, irrigation, recreation, and community living benefits to future generations in the region. To accomplish this, close attention must be given to preserving shore lands with unique or special qualities, properly managing and conserving the natural resources of the shoreline, and protecting and balancing different uses so they can be enjoyed by the public in the years to come. In its role as a steward of public land, Central must balance the increasing, and often conflicting, recreational, residential and commercial uses of that land and shoreline, while ensuring that legitimate and appropriate existing uses and valuable habitat are protected.

B. Project Description

Central’s Kingsley Dam Hydroelectric Project, authorized in the 1930’s and completed in 1942, consists of two distinct segments. (See Figure 1-1.) The first segment is comprised of Lake McConaughy and Lake Ogallala. Lake McConaughy, formed by Kingsley Dam, has a surface area of 30,500 acres at full pool and is roughly twenty-one miles long. Lake Ogallala was created where the North Platte River was dredged and pumped to form the eastern slope of Central’s project. The Kingsley Hydropower plant, built in 1984, abutting Central’s project, discharges into Lake Ogallala and is authorized to generate 49.97 megawatts (MW) of installed capacity.

Lake McConaughy provides diverse and popular public recreational opportunities. Kingsley Dam is at the east end of the lake, while an expanse of wetland defines the west end. Except for the areas occupied by project facilities and four cabin areas, all of Central’s Project lands at Lake McConaughy are leased to the Nebraska Game and Parks Commission (NGPC) as a State Recreation Area (SRA). Developed campsites, marinas, vacation rentals, residential properties and water access areas are dispersed along its north and south shorelines. The majority of shoreline along Lake Ogallala is a State Recreation Area (SRA) managed by the Nebraska Game and Parks Commission (NGPC) on lands leased from Central for that purpose. The public recreation areas located within Central's Right of Way at both lakes, including those occupied by recreation concessionaires, are provided by the NGPC. Fishing, camping, boating and other recreational uses, as well as winter "bald eagle viewing" are popular activities on the lakes.

The second segment begins at the Central (or Tri-County) Diversion Dam, located 50 miles downstream of Central’s project, at the confluence of the North and South Platte Rivers. The Dam diverts water into the 75-mile-long Supply Canal, which flows through 27 canyon lakes of varying sizes and 3 hydroelectric power plants before the water is returned to the Platte River east of Lexington. The three hydroelectric power plants along the Supply Canal are the Jeffrey Hydro plant (18 MW), south of Brady, Nebraska; Johnson No. 1 Hydro plant (18 MW), and Johnson No. 2 Hydro plant (18 MW), both east of Johnson Lake.

The Supply Canal also delivers water to three irrigation canals that serve an area covering more than 105,000 acres in Gosper, Kearney and Phelps counties in south-central Nebraska. An additional 7,000 acres are irrigated directly from the Supply Canal as it flows east through Lincoln and Dawson counties.

The sizes of the water bodies impounded along the Supply Canal vary from less than 1 surface acre to more than 2,500 surface acres. Most of the shoreline along the canal and around these lakes is accessible for public recreation use. This report focuses only on those lakes greater than 20 surface acres in size, with public road access. Lincoln County, where the Supply Canal is diverted from the Platte River, contains ten lakes associated with the project. These include Boxelder Canyon Lake (22 surface acres), Cottonwood Lake (33 surface acres), Snell Lake (53 surface acres) and Jeffery Reservoir, with 575 surface acres. Boxelder Canyon Lake and Jeffery Reservoir both have small Wildlife Management Areas (WMA’s) and Jeffery Reservoir provides boating access. Jeffery Reservoir is the only lake on the Supply Canal in Lincoln County with residential homes adjacent to the shoreline. Most of these homes are located on land owned by Central and leased to a lake association that manages much of the day-to-day administration of the leased area. Some of the homes are located within Central's Project Boundary; others are located on lands owned by Central outside the Project Boundary.

Dawson County is the next county the Supply Canal enters on its way east. The lakes of note along this stretch of canal are Hiles Canyon Lake (19 surface acres), the Midway Lakes (ranging from 48 to 341 surface acres), Gallagher Canyon Lake (182 surface acres) and Plum Creek Canyon Lake (252 surface acres). Plum Creek Canyon Lake has a small WMA providing boating access to the Lake. Housing is scattered on private and project lands along its steep banks. Gallagher Canyon Lake has an SRA, which provides facilities for camping, picnicking and boating access. Two of the Midway Lakes have small areas of residential property along the shoreline. The majority of this housing is also on land leased from Central and similar to Jeffrey, homes lie both within and outside Central's Project Boundary.

Johnson Lake, the largest lake on the canal, has the distinction of being the only lake to lie within two counties. The northern portion of the lake lies in Dawson County and the southern portion of the lake and the canal system is in Gosper County. Johnson Lake is also the only lake in the system with its entire shoreline developed for residential, marina or public recreation use. There are two SRA’s at Johnson Lake, which offer a variety of public recreational opportunities, including handicapped-accessible fishing facilities, camping, picnicking and swimming. There is a public golf course, operated under a lease with Central, located within the Project Boundary just below the dam. There are a few small canyon lakes on the Supply Canal in Gosper County. The WMA located at East Phillips Lake (142 surface acres) provides access for fishing and a public boat ramp. Three homes are located on private property located adjacent to the Central's Right of Way at Knapple Lake (38 surface acres).

Central will be reviewing the FERC Boundary and evaluating whether it is necessary to add or remove any lands to the FERC Boundary as described in the Plan for Reviewing FERC Boundary that is in Plan Appendix I.

C. Purpose of the Land and Shoreline Management Plan

The purpose of this Plan is twofold. First, it is designed to comply with the requirements of Central’s FERC Central’s license. Second, the Plan will guide Central in making decisions regarding the future use of its land within Central’s Right of Way. The Plan provides a clear statement of how Central will manage its land and shoreline by identifying specific uses and procedures. The Plan will help minimize land use conflicts and will improve Central’s ability to administer its land policies in a fair and consistent manner.

The license for Central’s Project, issued July 29, 1998, contains several specific license conditions governing the management of lands and waters within the defined Project Boundary. The conditions most directly related to this Plan are contained in license Articles 421 and 422. The license also contains more general standard provisions pertaining to management of FERC licensed Project lands and waters, including Articles 3, 5, 18, & 21. The verbatim text of all of these Articles, also referred to as “License Conditions”, is presented in Plan Appendix I. A discussion of the requirements of Articles 421 and 422 follows here.


ARTICLE 421 SHORELINE MANAGEMENT PLAN REQUIREMENT

Pursuant to the requirements of Article 421 of the license, Central is directed to file a “Plan to manage the lands and shorelines of the project” area, within 24 months of the issuance of the license. The objective of this Plan is to meet that requirement and other related legal and regulatory conditions, while providing a rational and consistent approach to the management of Project lands and waters consistent with the District’s objectives and responsibilities.

Pursuant to the terms of Article 421, the Shoreline Management Plan must:

· Identify Project lands and shorelines that are and will be reserved for present and future wildlife, public recreation, residential, agricultural and other uses.

· Identify any proposed change in the use of Project lands from uses in existence at the time the license was issued.

· Be updated every five years after the Plan is approved.

· Be prepared, in consultation with the U.S. Fish and Wildlife Service and the Nebraska Game and Parks Commission, and a report must be filed every three years following initial Plan approval reflecting the periodic re-evaluation of the tern and plover nest protection and bald eagle perch and roost site protection components of the Plan.

· Evaluate the need for, and identify appropriate measures to address:

- protection of least tern and piping plover nesting sites at Lake McConaughy similar to programs existing at the time the license was issued.

- suitable protection for bald eagle perch and roost sites on Project lands that were in existence when the license was issued.

- controlling aquatic vegetation and sedimentation in project reservoirs.

· Address the use of Project lands and shorelines designated for public recreational use under the Land and Shoreline Management Plan, and the recreational use of project waters


The recreational component of the Plan, referred to above, must also:

· Designate Project lands and/or waters for campgrounds, recreational vehicles, fishing, hunting, boating and canoeing.

· Be consistent with wildlife protection measures required by the license (See License Articles 417-420, Plan Appendix I).


ARTICLE 422 STANDARD LAND USE ARTICLE

In addition to the requirements of Article 421, Central is also subject, under the terms of its FERC license, to other constraints on its authority to authorize non-project uses of Project lands. Under the terms of FERC’s “standard land use Article”, which appears in the Central's license as Article 422, Central has limited delegated authority from FERC to permit uses or to convey interests in Project lands only under certain conditions. To understand this Article and the relative levels of delegated authority, it is important to distinguish between use authorizations such as permits or licenses to use lands and conveyances, such as an easement, lease, or grant in fee title, which transfer a legal interest in the property.

Verbatim text of Article 422 appears in Plan Appendix I. Because Article 422 is long and complex, a general overview of its requirements is also presented here.

This Article identifies four levels of authority delegated to FERC licensees, each level applicable only for specific categories of use, and each level subject to specific standards and requirements. Any uses authorized under the terms of the Article must also conform to the requirements of the approved Shoreline Management Plan. Any non-project uses of lands within the Project Boundary not authorized under the terms of Article 422 must receive express prior approval from FERC. That approval process requires pre-filing consultation with agencies and can take as long as 12 months, or even longer, to complete.

Central’s broadest level of delegated authority is to permit three specific categories of use. In general, Central may grant permits, without obtaining prior FERC approval, for:

· Landscape plantings, food plots and wildlife plantings;

· Non-commercial piers, landings, boat docks, or similar structures and facilities that accommodate no more than ten watercraft at a time and are intended to serve single-family type dwellings; and

· Embankments, bulkheads2, retaining walls3, or similar structures for erosion control to protect the existing shoreline (See referenced footnotes for particular requirements for bulkhead and retaining walls).

When Central does grant authority for such uses, they must meet all of the following criteria:

· The proposed use and occupancy must be consistent with the purposes of protecting and enhancing the scenic, recreational, and other environmental uses of the project;

· Central must require multiple use and occupancy of facilities for access to Project lands or waters, unless this is infeasible or will not further goals of protection and enhancement of the project’s scenic, recreational and other environmental values;

· The permitee must maintain permitted uses and occupancies in good condition and repair;

· All uses and occupancies must comply with all applicable requirements of state law, local ordinances, and federal law, including the Federal Power Act, Title 18 of the Code of Federal Regulations, and the terms and conditions of the FERC license4, including this Plan.

Article 422 also enables Central to grant easements and leases for Project lands, and in some cases convey land in fee5. If Central does grant such rights in Project lands, it is obligated to do so only subject to all of the following conditions:

· Proposed use and occupancy must be consistent with the purposes of protecting and enhancing the scenic, recreational, and other environmental uses of the project;

· As feasible and desirable to protect and enhance the project’s scenic, recreational, and other environmental values, Central must require multiple use and occupancy of facilities for access to Project lands or waters;

· Permittee must maintain permitted uses and occupancies in good condition and repair;

· Uses and occupancies must comply with all applicable requirements of state law, local ordinances, and federal law, including the Federal Power Act, Title 18 of the Code of Federal Regulations, and the terms and conditions of the FERC license6;

· All rights necessary to provide for operation of the project are reserved;

· Central must consult with federal and state fish and wildlife agencies, as appropriate, and the State Historic Preservation Officer;

· Central must determine that the proposed use is not inconsistent with an approved Recreation Plan (Section 6 of this Plan or approved update), or, if there is no approved Recreation Plan, that the lands to be conveyed do not have recreational value.

If Project lands are conveyed under the authority of Article 422, the instrument of conveyance must include covenants running with the land, which will ensure that:

· Use will not endanger health, create a nuisance, or otherwise be incompatible with overall project recreational use, and

· Grantee or lessee will take all reasonable precautions to ensure that construction, operation, and maintenance of structures/facilities on the conveyed lands will occur in a manner that will protect the scenic, recreational, and environmental values of the project.

Central must report any conveyance of Project lands to FERC. The reporting requirement is based on the type of use authorized by the conveyance. In some cases, Central must inform FERC 60 days prior to executing the conveyance. If FERC does not respond within 45 days of the filing, requiring an application for prior approval, Central may subsequently execute the conveyance. Other categories of conveyances are simply reported once a year to FERC. The complexity and number of categories involved make it necessary to refer the reader to the text of Article 422, in Plan Appendix I. As noted earlier, all permits to use or conveyances of Project lands not categorically identified in Article 422 are subject to pre-filing consultation and prior FERC approval.


Section 2 - Planning and Consultation Process

During the last two years, pursuant to the requirements of Article 421, Central undertook to identify and inventory Project land uses, and to consult with the USFWS and NGPC regarding the desired elements of the Shoreline Management Plan and their particular concerns about land use and land management in the Project area. Central also met with local government officials and initiated a program of public meetings and information dissemination, which was not required by the license, to assure that public concerns and local issues were fully considered in the development of the Plan. The planning and consultation process was initiated in May, 1999. During 1999 and the first part of 2000, Central distributed Plan-related materials and sought agency and public input regarding the Plan. Central met with representatives of federal and state agencies and local governments, and sought public input in a series of public notices and meetings. Initial public comment7 was vigorous; in part due to an apparent misunderstanding of the focus and objectives of the Plan and the mistaken impression that Central was divesting lands for private development. Final public meetings were held in June, 2000, and written comments were requested on or before July 7, 2000, to allow Central to consider them and revise the Draft Plan as appropriate before submitting it to FERC for approval in late July. The USFWS and NGPC did file timely and useful comments and those comments, and Central’s response to them, are summarized in Section 8 of the Plan. Copies of the agency letters are in Plan Appendix II.

Step 1 -- Identification and Inventory of Project Resources

A. Review of Existing Resources

The initial step in the planning process was to identify and review existing sources of information about Central’s Project, including maps, historical records, and literature.

B. Consultation

Central initiated consultation with both the NGPC and the USFWS in August of 1999 to determine their interests and concerns about the management of the lands and shorelines within Central’s Right of Way. The NGPC is responsible for the stewardship of the state’s fish, wildlife, park, and outdoor recreation resources. The majority of the shorelines of both Lake Ogallala and Lake McConaughy, as well as large areas of land adjacent to Lake McConaughy, are leased to the NGPC for public recreation and wildlife habitat enhancement purposes. The NGPC also leases Central’s lands for recreation and wildlife areas on Gallagher Canyon Lake, Johnson Lake, East Phillips Lake, Boxelder Canyon Lake, and Jeffrey Reservoir. The USFWS is the principal federal agency responsible for conserving, protecting and enhancing fish, wildlife, and plants and their habitat. Central’s license requires consultation with the USFWS regarding migratory bird and endangered species protection plans for the least tern, piping plover and bald eagle, as well as provisions for creating habitat for migratory waterfowl and the endangered least tern and piping plover.

During the initial consultation phase, in August of 1999, Central also met with representatives of Dawson, Gosper, Keith, and Lincoln Counties to inform them of the planning process, to obtain information about existing and proposed zoning and building code requirements, and to determine their interests, concerns and recommendations regarding the Land and Shoreline Management Plan.

To determine the needs and interests of the region as a whole, Central also consulted local residents, cabin owners, and recreational users at this stage of the planning process. Three public information meetings were held in August of 1999 where the mechanics of the planning process were presented, and Central staff encouraged discussion of resource topics. While interested persons could attend any or all of the meetings, the eastern meeting, held in Lexington, focused on Johnson Lake and Plum Creek Canyon Lake. The meeting held centrally, in Gothenburg, focused on Jeffrey Reservoir and the Midway Canyon lakes; while the Ogallala, or westernmost, meeting focused on Lake McConaughy and Lake Ogallala. Each of these meetings was advertised in local papers and through Central’s existing mailing lists of customers, lessees, permittees, and attendees of earlier related public meetings.

C. Land and Shoreline Use Inventory

The initial inventory process involved a reconnaissance flight over the entire project, to gain an understanding of the project as a whole. The system, the lands and uses within Central’s Right of Way and within the Project Boundary, and the shoreline, were then surveyed by road and from the water.

Step 2 – Analysis and Application of Land Use Categories

Following the information review, inventory and initial public, agency, and local government meetings, Central developed a unique land use classification system for the lakes and canal system, suited to the needs of the land and shoreline in the region. Specific land use categories were defined (See Section 4 of this Plan) and applied to the various identified existing uses. These were mapped utilizing a Geographic Information System (GIS). Maps reflecting the result of these efforts appear in Section 9 of this Plan.

Step 3 - Preliminary Discussions with Agencies and Local Governments

Central met individually with federal and state agencies and local governments in late 1999 and early 2000, to discuss their preliminary ideas and topics of interest relating to the proposed Plan.

Step 4 – Presentation of Resource Topics and Draft Land & Shoreline Use Maps

During January of 2000, Central held three regional public meetings. After a general update on the planning process and the status of the Plan development project, a summary of the topics and issues identified at the earlier meetings was presented. After pictures were shown to illustrate the lakes in the region, the land use classifications were identified and defined and the initial draft land and shoreline use maps were described. The classifications and initial land use maps generated discussion at each of the meetings, Central noted the expressed concerns and addressed them to the extent it was practical to do so during the meetings.

Central also met with the NGPC in Lincoln, and with the USFWS in Grand Island, during January of 2000. At each of these meetings, the proposed land use classifications, draft land and shoreline use maps and implementation strategies of the Plan were discussed; with emphasis on public recreational use and species protection goals and values.

Central met with the Corps8 in Kearney. At that time, Central had applied to the Corps for a Programmatic General Permit that would delegate a limited degree of Corps authority9 to Central, allowing Central to permit specific uses that now require authorization from both the Corps and Central. Central presented the land and shoreline use maps in the meeting with the Corps. The meeting focus was, however, on discussing proposed shoreline implementation strategies and to provide the Corps the opportunity to offer comments or suggestions on proposed strategies that might impact the exercise of its responsibilities in the region. This focus on Plan implementation was driven by Central’s application to the Corps for a Programmatic General Permit.

The Corps issued Central a Programmatic General Permit (General Permit 99-04) on July 29, 2001. For bank protection projects that meet the eligibility requirements of this permit, Central is allowed to issue Programmatic General Permits at the following lakes: Lake McConaughy, Jeffrey Reservoir, Central Midway Lake, East Midway Lake, Plum Creek Reservoir, and Johnson Lake. However, bank protection projects whose shoreline length is greater than 300 feet for an individual or 500 feet for a lake association, or are not located at one of the eligible lakes listed above, will continue to require a Permit to Construct from Central and an individual Section 404 permit from the Corps. For more specifics on which type of projects are eligible for a Programmatic General Permit, see the copy of General Permit 99-04 in Plan Appendix I. The Application form to use for requesting a Programmatic General Permit from Central is also included in Plan Appendix I.

During January 2000, Central met jointly with representatives of Dawson and Gosper counties to present the land use maps and discuss implementation strategies that specifically related to zoning and building regulations. A meeting was also held with Lincoln County representatives, while the Keith County Commissioners and representatives attended the public meeting Central held in the western region at Lake Ogallala.

Subsequent consultation efforts are described in Steps 6 and 7, below.

Step 5 – Balancing and Development of the Plan

After receiving comments and suggestions from the agencies, local governments and public, Central modified the land and shoreline use maps and prepared and disseminated an initial Draft Plan for comment. All comments and concerns were considered and balanced to the extent possible in the initial Draft and successive pre-filing revisions of the Draft Plan. A discussion of the resource topics raised and the comments received during consultation appears in Section 8 of this Plan, and copies of written comments are included in Plan Appendix II. In the discussion, comments are categorized by resource topic and grouped by source (whether they were submitted by state or federal agency or local government, were voiced by a member or members of the general public, in writing or in a public meeting).

Step 6 – Agency and Local Government Review

The Draft Plan was sent to the agencies and local governments in June 2000 for review and comment, accompanied by a notice of the public meeting dates. Central requested review and comment on the Draft Plan from NGPC, USFWS, Corps, and Dawson, Gosper, Keith and Lincoln Counties. Central revised the Draft Plan based on the comments and suggestions, and provided explanations where requested changes were not made to the Plan. The comments are included in Plan Appendix II and discussed in Section 8.

Step 7 – Public Presentation of the Plan and Comment Period

Three regional formal public meetings to receive comments on the Draft Plan were held in June 2000. The meetings were advertised in local newspapers and radio stations. Notice also was mailed directly to all lessees. Copies of the Draft Plan were available for public review before the meetings on Central’s Web site, at Central’s Offices, and at public libraries, and copies were forwarded to the lake associations. Central requested final comments on or by July 7, 2000. The public meetings were recorded, and the comments, both oral and written, as well as Central’s response to them where appropriate, are summarized in Section 8 and copies of the written comments are included in Plan Appendix II.

Step 8 – Central Board Review

After revisions to the Draft Plan were completed, it was presented to Central’s Board of Directors for review and approval prior to being submitted to the FERC.

Step 9 – Filing the Plan with FERC

Following the approval of the Plan by the Central Board of Directors, the Plan was submitted to the FERC for review and approval.


Section 3 - Shoreline Management / Responsibilities And Activities

A. Central’s Responsibilities in Developing a Shoreline Management Plan

As discussed in Section 1 C of this Plan, Central’s FERC License contains both specific and general provisions regarding Central's responsibilities for management of Kingsley Project lands, shorelines and water. Articles 421 and 422 appear in Plan Appendix I, and these provisions are discussed in detail in Section 1 of this Plan.

Central’s license also contains other general “standard” conditions that impact Central’s land and shoreline management program and practices. The complete text of these articles is also included in Plan Appendix I.

Article 3 provides in pertinent part:

Minor changes in project works, or in uses of project lands and waters, or divergence from such approved exhibits may be made if such changes will not result in a decrease in efficiency, in a material increase in cost, in an adverse environmental impact, or in impairment of the general scheme of development; but any of such minor changes made without the prior approval of the Commission, which in its judgment have produced or will produce any of such results, shall be subject to such alteration as the Commission may direct.

Article 5 requires Central to:

Retain the possession of all project property covered by the license as issued or as later amended, including the project area, the project works, and all franchises, easements, water rights, and rights or occupancy and use; and none of such properties shall be voluntarily sold, leased, transferred, abandoned, or otherwise disposed of without the prior written approval of the Commission, except that the Licensee may lease or otherwise dispose of interests in project lands or property without specific written approval of the Commission pursuant to the then current regulations of the Commission.

Article 18 addresses availability of Project lands and waters for public recreation with this language:

So far as is consistent with proper operation of the project, the Licensee shall allow the public free access, to a reasonable extent, to project waters and adjacent project lands owned by the Licensee for the purpose of full public utilization of such lands and waters for navigation and for outdoor recreational purposes, including fishing and hunting: Provided, That the Licensee may reserve from public access such portions of the project waters, adjacent lands, and project facilities as may be necessary for the protection of life, health, and property.

Article 21 reinforces the jurisdiction of FERC and the Corps over certain activities within the Project Boundary:

Material may be dredged or excavated from, or placed as fill in, project lands and/or waters only in the prosecution of work specifically authorized under the license; in the maintenance of the project; or after obtaining Commission approval, as appropriate. Any such material shall be removed and/or deposited in such manner as to reasonably preserve the environmental values of the project and so as not to interfere with traffic on land or water. Dredging and filling in navigable water of the United States shall also be done to the satisfaction of the District Engineer, Department of the Army, in charge of the locality.

In addition to these “standard articles”, the license contains other specific license conditions, which are described below. The complete text of each of these conditions appears in Plan Appendix I.

As noted earlier, Articles 420 and 421 require Central to provide habitat for least terns and piping plovers (LT/PP)10. Article 423 requires monitoring of endangered species and their habitats, and Article 424 requires Central to participate in public education programs, such as the operation of the eagle viewing sites and least tern and piping plover programs. Article 425 requires Central to implement cultural resources protection actions or activities that are consistent with the "Programmatic Agreement" entered into by the FERC, the Advisory Council on Historic Preservation, and the Nebraska State Historic Preservation Officer for Managing Historic Properties to ensure the protection of the historic and culturally significant areas within the Project. Copies of the Programmatic Agreement may be obtained on Central’s website (cnppid.com) or by requesting it from Central’s main office.

B. Central’s Shoreline Management Activities at Plan Inception

Increasing national and regional interest in shoreline management and related environmental issues over the last several decades has resulted in heightened public focus on these aspects of land ownership and development for both public and private entities. Similarly, Central has placed increased priority over time on appropriate management of project lands and waters, including the project shoreline. FERC, too, has responded to this issue by imposing land management or shoreline management plan requirements in virtually all new licenses.

At the time this Plan was initially submitted to FERC for approval, Central’s shoreline management activities generally involved a "Permit to Construct" approval process for construction, shoreline disturbance, or other activities on lands within Central’s Right of Way. Central anticipates formalizing the process upon approval of this Plan. The majority of broader scope shoreline management responsibilities have typically been implemented through long-term leases with lake associations or state agencies. In some cases, lake associations executed these leases. The provisions of those leases generally obligate the lake association to establish a management group or board responsible for ensuring each home or cabin resident complies with the terms and conditions of the lease, both on their own site and in common areas.

In 1999, Central executed a long-term lease with the NGPC for wildlife management (WMA’s) on Project lands. Central is currently negotiating a long-term lease with NGPC for public recreation on lands at Lake McConaughy and Lake Ogallala, and anticipates formally executing that lease in late 2000. The terms of the recreation use lease will specify that the NGPC also has responsibility11 for subleases and management of recreation concessionaire use on Lake McConaughy lands. The basic provisions of these leases are described below.

Central has also executed leases with individuals and organizations for agricultural uses such as farming and pasture, as well as for uses for golf course and meeting facilities. The general provisions of these leases are also described below. Central contemplates that it will continue to engage in such leases under appropriate circumstances, and future leases will contain provisions that effectively implement the approved Shoreline Management Plan.

1. NGPC/Central Recreation Lease -- Lake McConaughy & Lake Ogallala

This lease between the NGPC and Central is for recreational use of Lake McConaughy and Lake Ogallala lands. The lease also authorizes NGPC to sublease to concessionaires.

The NGPC has designated these lands as SRA's. Central does not charge any fee to NGPC for this lease. NGPC requires a fee-paid Park Entry sticker for access to the designated SRA's, and the entrances to such areas are signed. NGPC charges additional fees for camping facilities and special use permits. All fees collected by the NGPC are used for SRA facility operation and maintenance. The lease specifies that it pertains only to the surface use of the land, that NGPC must maintain the recreation areas in good condition, that the uses and rights conveyed are subordinate to use and rights of Central and subordinate to all FERC rules and regulations, and penalties for termination for breach of lease.

2. NGPC/Concessionaires Sublease -- Lake McConaughy

NGPC charges concessionaires a rental fee under the terms of its sublease. The sublease also enumerates goods and services that the concessionaire must make available for sale on the site, including:

· Food, refreshments and related items,
· Sporting goods, fish bait and related items,
· Motor boat fuel and lubricants,
· Camping and picnic supplies, and
· State hunting, fishing, trapping and Park permits and Habitat stamps.

The subleases also identify other goods and services, which a concessionaire may elect to provide on the site, with prior written permission from NGPC. These include:

· Boat motor and related item sales or rentals,
· Service, repair and maintenance of privately owned watercraft,
· Boat transportation of passengers for hire,
· Dry storage facilities for watercraft, trailer and related equipment,
· Seasonal mobile home site rentals,
· Overnight camping site rentals with 14 day limit,
· Vacation cabin rentals,
· Boat, motor, and related item rental
· Sale and rental of boat docks and lifts.

The concessionaire is required to conduct all aspects of operations and business in a manner acceptable to the NGPC and in accordance with best business practices. The concessionaire is obligated to treat customers in a polite, respectful, responsive and non-discriminatory manner. The sublease also requires the concessionaire to provide and maintain electric service, water facilities, toilets, sewage and garbage disposal facilities.

Additional items within the sublease relate to:

· Liability
· Site and structure maintenance requirements
· Reasonable hours of operation
· Fire fighting
· Construction specifications
· Lease term extension
· Lease termination.

3. NGPC/Central State Recreation Lease – Gallagher Canyon Lake, Plum Creek Canyon Lake, Johnson Lake Inlet, Johnson Lake Outlet, and East Phillips Lake

This is a 99-year (expires September 26, 2044) lease for tracts of land adjacent to the noted reservoirs at no charge to NGPC. There are no provisions in the lease permitting NGPC to sublease the property. The Lessee must improve and maintain the tracts of land, designated as SRA’s, for recreation purposes for the term of the lease. NGPC requires that visitors to these sites, which provide public facilities for camping, boating, and fishing, obtain a park entry permit

4. NGPC/Central Wildlife Management Area Lease

This lease addresses NGPC’s utilization of lands along Central’s system as WMA’s. The 25-year lease, executed August 27, 1999, authorizes NGPC to use the following areas:

· Clear Creek Wildlife Management Area – Lake McConaughy – 6,118 acres
· Boxelder Canyon Wildlife Management Area – Boxelder Canyon Lake – 26 acres
· Jeffrey Wildlife Management Area – Jeffrey Lake – 4.6 acres

Central does not charge NGPC for leasing these parcels. However, NGPC does pay Central a nominal use fee for agricultural land that NGPC subleases to local farmers within the Clear Creek WMA. These agricultural lease fees are based on Central’s usual fees for private agricultural use of its property.

5. Central/ Lake McConaughy Lessees, Inc. – Cabin Lease

Central has entered into a master lease with Lake McConaughy Lessees, Inc. (LMLI) for the purpose of managing and subleasing the cabin lots in the K-1, K-2, K-3 and K-4 cabin areas on Lake McConaughy. The lease provides for an annual rental fee and stipulates that authorized use of the cabin lease land area is strictly for recreational use, and that no commercial, business or industrial use of the land will be permitted. The lease does not have a specific termination date, but does include a clause requiring thirty years notice prior to cancellation. Lease terms also provide that the lease may also be cancelled by Central if it is necessary for Project operations or for breach of the lease terms. Pursuant to the terms of the Master Lease, Central has established a "two tier" rental system that distinguishes between lots that are immediately adjacent to the main lake and lots that are not. The lease prescribes the required height above the high water line for permanent construction and includes requirements for in-water facilities and/or boathouses. The individual site Lessee is responsible for maintaining the property and structures, and LMLI is responsible for trash removal from all four residential areas. LMLI enters into individual subleases with each cabin owner. The subleases are modeled directly from the master lease.

6. Central/Midway Wildlife and Recreation Club – Cabin Lease

This lease is between Central and the Midway Wildlife and Recreation Club (Corporation), which is the lake association for the cabins constructed on Central’s property on Midway Lake. This lease may be terminated for Project operational purposes upon written notice to the Corporation allowing a "reasonable" time period for removal of the homes and structures. Pursuant to its terms, the Corporation may sublease the individual lots as designated for residential cabins. The Corporation and Central must both approve any development or construction and any changes to the shoreline on the individual lots. The lease further specifies that the officers, directors and/or authorized personnel of the Corporation are responsible for enforcing the regulations of the lease and for making and enforcing any additional rules or regulations deemed necessary for the management of the entire leased area. At the time this Plan was submitted to FERC, lawsuits were pending: 1) In the Nebraska Court of Appeals, regarding Central's ability to charge a reasonable lease fee for the use of lots within Central's right-of-way, and 2) In the District Court of Lincoln County, challenging Central's exercise of requirements for Permits to Construct within the Project Boundary at Jeffrey and Midway Lakes.

7. Central/Jeffrey Lake Development, Incorporated – Cabin Lease

Aside from the property description, this lease is virtually identical to the Midway Wildlife and Recreation Club lease described above. At the time this Plan was submitted to FERC, lawsuits were pending 1) In the Nebraska Court of Appeals regarding Central's ability to charge a reasonable lease fee for the use of lots within Central's right-of-way and 2) In the District Court of Lincoln County challenging Central's exercise of requirements for Permits to Construct within the Project Boundary at Jeffrey and Midway Lakes.


8. Central/Johnson Lake Development Incorporated, including Plum Creek Cabin Owners

On Johnson Lake and Plum Creek, Central typically enters into an individual lease with each cabin owner. Although no termination dates are specified, there is a thirty-year cancellation clause, and leases may be cancelled earlier if necessary for project operational needs or for breach of the lease terms. The leases contain provisions for annual rental fees and specify that the cabin area is strictly for recreational use. No commercial, business or industrial use of the land is authorized or allowed. For this area, Central has established a "five tier" rental system, which classifies lots based upon distance to the lake and view. Any and all construction on the leased lots must meet Central’s requirements and be approved in writing prior to initiation of construction. Central has entered into a "Management Agreement" with the Johnson Lake Development, Inc. (JLDI). Pursuant to this Agreement, the JLDI serves the functions of a property management company, including: mowing common areas, trash removal, maintaining a directory of lake residents, assisting in lot surveys, resolving disputes between cabin owners, and maintaining 911 emergency access notification addresses. JLDI is also the lake association for both Johnson Lake and Plum Creek Canyon Lake.

9. Central/Johnson Lake Concessionaires

Central has individual leases for each Concessionaire on Lake Johnson. These leases are generally for a five-year term and are renewable for an additional five years. The leases have a six-month cancellation clause, within which time the concessionaire must remove their facilities. Each lease contains specific requirements concerning construction of facilities, site use, handling of hazardous wastes and sanitary facilities. Each lease also specifies shoreline or waterfront use and maintenance requirements. Consistent with FERC license requirements, the leases also state that the Lessee must operate and maintain the facilities for the protection of the scenic, recreational and environmental values of Lake Johnson. The leases specify the commercial activities and goods and services authorized for a site as including, but not limited to:

· Overnight camping and RV sites
· Boat, motor and related item rental
· Food, refreshment and related item sales
· Sporting goods, fish bait and related item sales
· Motor boat fuel and lubricant sales
· Camping and picnic supply sales
· State hunting, fishing, trapping and Park permit and Habitat stamp sales
· Sale of beer, wine and liquor for on-site consumption
· Sale of beer, wine and wine coolers for off-site consumption only
· Mobile home sites and vacation cabins
· Any other use consistent with Tenant’s current operation with prior approval


10. Central/Farm and Agricultural leases

Central owns several small tracts of land, ranging from approximately 1 acre to 142 acres in size, that are leased, at a fee, directly to individuals for dry land farming, irrigated farming and/or pasture. The annual rental charges are consistent with the fair market values in the area, as determined by the Central Board of Directors. The typical term for this type of lease is three years. Lessees are responsible for fencing, noxious weed control, waste, and any damage to the property. The leases are expressly subject to Central’s operational needs and to the right of the public generally to enter upon the leased land in the vicinity of the lakes, canals, and waterways for recreational purposes, without charge.

11. Specific Use Leases

These leases allow for various specific uses to occur on lands that Central has leased to federal, state or local units of government, individuals, organizations, or businesses inside Central's Right of Way. Leases in this category at the time the Plan was submitted authorized the following uses.

· "Golf Course"
· "Airstrip"
· "Emergency Medical Services" and "Emergency Warning System"
· "Meeting Facility"

These leases stipulate that public access must be provided, the type of facilities and structures that may be built on the property, and other requirements and conditions pertinent to the specific authorized use.

Section 4 - Land and Shoreline Use

This section defines land use classifications, provides a brief physical description of each area of the Project, and identifies the land and shoreline uses on the Land and Shoreline Use Maps as they existed when the land and shoreline inventory was conducted in Fall, 1999 (See Section 9 for maps). This section also identifies potential outside influences on land use or management, existing development opportunities and constraints, and describes the process for requesting a change in use of lands within Central’s Right of Way.

A. Land Use Classifications

The following land use classifications were developed to categorize areas of Central’s land and shoreline. This unique set of classifications describes the distinctive land use and ownership patterns found in this Project. This section includes only the description/definition of the land use categories. Land Use Maps and descriptions applying these categories to the actual parcels of land within Central’s Right of Way are found in Section 9 of this Plan, while the identified recreation uses are found in the Recreation Use Report, Section 7.

"Concessionaire" – Includes those areas where either Central or the NGPC has leased