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$22,000 to the funding of a local fish hatchery The resolution of the State issues was 

 likewise achieved without litigation by the payment of a fine of $12,500. 



Ketchikan Pulp Company spent approximately $70,000 during the 1995 dredge period on 

 a program to monitor water quality standards during dredging operations. The results of 

 the program were shared with ADEC and EPA and indicated that KPC's dredging does 

 not cause or contribute to violations of water quality standards 



Authorization for KPC to perform maintenance dredging was received via a dredging 

 permit issued by the US Army Corps of Engineers District of Alaska. The current terms 

 allow KPC to dredge 1 5,000 cubic yard per year. Stipulations exist stating the dredged 

 material will be placed in a specified site for dewatering, then transported in covered 

 trucks to an upland landfill. The time limit for completing work under the current permit 

 is March 31, 1997 



By Federal law, the final dredging permit cannot be issued until a State of Alaska Section 

 401 Water Quality Certification has been issued or waived, and a Coastal Zone 

 Management consistency determination has been completed KPC has currently stopped 

 the review clock for the determination issued by the Alaska Division of Government 

 Coordination to negotiate provisions with various State of Alaska resource agencies. The 

 401 Certification issued by the Alaska Department of Conservation, is pending resolution 

 of several issues: 



1. Identification of a suitable disposal site for the dredged material. 



2. Approval of a Ward Cove water sampling plan to assure compliance with 

 Alaska State Water Quality Standards, and 



3. Definition of a practical time frame during which dredging will have a minimal 

 effect on migrating salmonids, which will likely be the month of January 



KPC plans to conduct a maintenance dredging program af^er resolution of these issues. It 

 is expected that this will occur in January 1997 



Log Transfer Facilities 



Ketchikan Pulp Company operates an extensive logging operation. Logs are transferred 

 fi-om sort yards and collection points at log transfer facilities which are regulated by the 

 US Environmental Protection Agency (EPA) pursuant to the Clean Water Act. The 

 agency issues permits to log transfer facilities as part of the National Pollutant Discharge 

 Elimination System (NPDES) program. KPC holds several such permits for its log 

 transfer facilities. These permits generally place restrictions on how logs may be loaded, 

 unloaded, and stored. Some permits also require monitoring to ensure that the deposition 

 of bark does not cause environmental degradation. Monitoring of the waters for oil 

 sheens at all KPC operated log transfer facilities is performed and logged on a daily basis 

 This is an NPDES permit stipulation. The United States Coast Guard and the Alaska 



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