UPPCO Basin Development Update - Spring 2008
UPEC has filed a twelve-page Motion to Intervene and Comments in opposition to the Upper Peninsula Power Company’s Shoreline Management Plans (SMPs) filed with the Federal Energy Regulatory Commission (FERC). If we are granted intervener status, any other party filing a motion in the case will be required to serve us with a copy, and we will have the option of filing a motion. We would also have the option of seeking a rehearing or judicial review of FERC’s decision in the case.
The SMPs would provide for the development of the shorelines of five relatively natural basins located in the Upper Peninsula by granting easements to purchasers of lots bordering the basin buffer zones. The development would include Bond Falls, Prickett, AuTrain, Cataract and Boney Falls basins. A sixth basin, Victoria, was withdrawn from UPPCO’s final development plans.
The SMP easements would allow lot owners to install docks in the basins up to 150 feet in length; clear view corridors so they can see the lakes from their homes; and construct trails in the buffer zones that could be used for motorized access.
The plans call for public access paths up to six feet in width to be constructed in the buffer zones. These trails could be utilized by snowmobiles and other motorized vehicles, such as all-terrain-vehicles, for dropping off and picking up boating supplies and for other purposes, according to provisions in the SMPs. The placement of this provision in the “prohibited activities” section of the SMPs seems somewhat deceptive to us. We wonder if this placement, and the convoluted wording of this section, was intended to obscure its true meaning.
The intensity of the proposed development and the provisions allowing motorized access would substantially change the character of these relatively natural lakes in conflict with the purpose for which the buffer zones were established.
An impressive number of comments and protests were sent To FERC in addition to about fifty motions to intervene. By far the majorityof the submissions were in opposition to the development plans. Our thanks goes out to all of you who took action. It would be difficult to imagine that FERC would approve the SMPs in the face of such tremendous opposition.
In an interesting turn of events, on February 25, 2008, the developer, Naterra Land, Inc., filed a Federal lawsuit alleging fraud, breach of contract, and breach of duty of good faith and fair dealing on the part of UPPCO.
According to the suit, Naterra originally agreed to pay $8.9 million for parcels at Bond Falls, Boney Falls and Cataract basins, but the amount was reduced to $5.9 million subject to the approval of local zoning and subdivision plans. Naterra alleges that they were unaware that there would be any difficulty in providing the buffer zone easements that they would need to
successfully develop the property. Naterra states that “...it was clear the Defendants’ [UPPCO] representatives’ material pre-closing representations regarding the status of the necessary easements and license approvals required for the development of the lakeshore property were false.”
The lawsuit document seems to confirm what development opponents had previously suspected, that UPPCO would gain an additional three million dollars if they were successful in providing for the development of the basin shorelines. From the start of the planning process UPPCO’s approach has seemed to us to be very biased toward development. This financial interest may explain why UPPCO seems to be trying so hard to drive the development plans through.
We are waiting for a decision from FERC on the UPPCO basin development plans. We are not sure what impact the Naterra lawsuit will have on the fate of the basins, but we will be watching with interest.
Although the official comment period has ended, FERC is continuing to accept comments until a decision is reached. Comments may be sent to: Kimberly D. Bose, Secretary, Federal Energy Regulatory Commission, DHAC, PJ-12.1, 888 First Street, N.E. Washington, DC 20426.
Letters should include the words COMMENTS OR PROTEST at the top and must include the project numbers for the basins you are writing about as follows: 10854-080 (Cataract), 2402-108 (Prickett), 1864-083 (Bond/Victoria), 10856-061 (AuTrain), and 2406-144 ( Boney Falls).
-William Malmsten, UPEC Vice-President
UPPCO Land Sales May Put Former U.P. Recreation Areas Off-Limits
In early December, 2005, U.P. residents were startled to hear 7,300 acres of recreational lands currently open to public use were being put on the block by their owner, the Upper Peninsula Power Company (UPPCO). According to a website set up by UPPCO to inform the public about the proposed sales, 2,300 of those acres are in Alger County, 2,800 in Ontonagon Co., 500 in Marquette/Delta Counties, and 1,700 acres of land in Baraga Co. The acreage is question abuts the company’s hydroelectric plants at Au Train, Boney Falls, Bond Falls, Cataract, Prickett Dam, and the Victoria Flowage. By the end of December, 2,720 acres had already been sold to a private developer.
A group of people concerned about the sale of this land has been formed. The Upper Peninsula Public Access Coalition (UPPAC) has created an on-line petition drive requesting legislators call for a new environmental impact study of those areas. To sing the petition or learn more about this issue, go to UPPAC’s new website at www.uppac.com. UPEC will continue to stay on top of this issue and report what is going on as we learn more about the sale of these unique public lands.