[Congressional Record (Bound Edition), Volume 152 (2006), Part 8]
[Extensions of Remarks]
[Pages 10629-10630]
[From the U.S. Government Publishing Office, www.gpo.gov]




        THE HOMESTATE HYDROELECTRIC PROJECT NUMBER 1 LEGISLATION

                                 ______
                                 

                         HON. STEPHANIE HERSETH

                            of south dakota

                    in the house of representatives

                         Thursday, June 8, 2006

  Ms. HERSETH. Mr. Speaker, I rise today to introduce legislation that 
will facilitate the timely and seamless transfer of the Homestake 
Hydroelectric Project Number 1 from the Barrick Gold Corporation to the 
City of Spearfish, South Dakota.
  This hydroelectric facility, originally constructed to provide 
electricity for a gold mine in the Black Hills of South Dakota, has 
operated continuously since 1912. The mine recently closed and the city 
of Spearfish acquired the project with plans to operate it to both 
generate power and benefit downstream water users.
  When the city acquired the project, the Federal Energy Regulatory 
Commission asserted jurisdiction, based on a finding that a pre-1920 
federal right-of-way grant which authorized the occupancy of federal 
lands by the project, had expired. This project has been operating for 
more than 90 years under a 1909 right-of-way allowing the project to 
occupy U.S. Forest Service land in the Black Hills National Forest. The 
project had never previously been subject to FERC jurisdiction under 
the Federal Power Act and the U.S. Forest Service maintains that the 
right-of-way continues to be valid.
  The legislation accomplishes three goals. First, the legislation 
strikes a balance between the various and important water uses of 
Spearfish Creek--agricultural irrigation use, power generation, 
recreation, aesthetic and to protect a unique and historic trout 
fishery.

[[Page 10630]]

  Second, it authorizes the United States Geological Study to examine 
the hydrology of the watershed to ensure that future management of the 
stream is based on sound science.
  Third, it enables the City of Spearfish, South Dakota, to assume 
operation of the facility without having to undertake the lengthy and 
complex federal hydroelectric licensing process operated by the Federal 
Energy Regulatory Commission,
  This legislation would enable the facility to continue operating as 
it has since its construction. It also recognizes that the City of 
Spearfish and the State of South Dakota are well equipped--as they have 
been for the past century--to appropriately manage the flows of 
Spearfish Creek.

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