UNITED STATES OF AMERICA73 FERC 62,051 FEDERAL ENERGY REGULATORY COMMISSION Decorative Specialists International Project No. 2608-010 Massachusetts ORDER APPROVING FINANCIAL ASSISTANCE AGREEMENT (ARTICLE 412) AND DELETING ARTICLE 408 AND 409 Issued October 25, 1995 On August 21, 1995, Decorative Specialists International, licensee for the West Springfield Project, FERC No. 2608, filed a financial assistance agreement. The material was filed to comply with Article 412 of the project license and is also intended to delete the requirements of Articles 408 and 409.1 Background Pursuant to Article 412, the licensee was required to attempt to reach a financial agreement with the Town of West Springfield (Town) and obligate themselves to provide up to $10,000 for the design and construction of an impoundment canoe and fishing access trail in Mittineague Park. Article 412 required a proposed agreement to be filed with the Commission by April 24, 1995. On May 5, 1995, an order granting extension of time was issued, permitting the licensee until August 24, 1995 to file the required material. In the event a financial agreement could not be reached with the Town, Article 412 required the licensee to develop a plan to construct, operate, and maintain impoundment canoe and fishing access at an alternative site. Because construction at an alternative site could not be reviewed with regard to the resource impacts that might occur, Articles 408 and 409 were incorporated into the license. Respectively, these articles require the licensee to conduct habitat and wetland delineation surveys at any alternative location proposed, and obtain agency consultation on the alternative plan. The Filed Material The August 21 filing includes a copy of a financial assistance agreement that was approved by the Town Board of Selectmen on August 7, 1995. This agreement states the Town will accept financial assistance from the licensee for the design, construction, and equipping of an impoundment canoe and fishing access trail to be located in Mittineague Park. The agreement further stipulates; (1) the Town will design and construct the facilities in accordance with all applicable state and Federal 1 69 FERC  62,068 (1994). 2 laws; (2) the licensee will transfer $10,000 to the Town to be held in a separate account strictly for application to this project; (3) the total amount to be contributed by the licensee is $10,000; (4) the Town will maintain strict and accurate records reflecting dispersal of funds for the project and the licensee will have access to the records; (5) the licensee will not be responsible for satisfactory completion of the project, the adequacy of the funds to complete the project, or for any ongoing operation or maintenance of the project; (6) the licensee will not be responsible for damages, losses, additional expenses, etc. that may be incurred during execution of the project; and (7) the agreement shall either terminate when expenditures on the project total $10,000, or when completion of the project is noticed by the Town, whichever occurs first. Because the filed material contains an agreement with the Town for impoundment access facilities, the filing further states the material eliminates the need for any subsequent filings pursuant to either Article 408 or 409. Discussion The financial assistance agreement signed by the Town Board of Selectmen on August 7, 1995, meets the requirements of Article 412. This agreement obligates the licensee to provide the Town with $10,000 for the design and construction of impoundment access facilities at Mittineague Park. As intended, this contribution should ensure that improved access is provided to the West Springfield Project impoundment. Because the facilities will be on Town-owned land and are not part of the approved project-related recreational facilities approved under Article 411, the licensee is not obligated by the project license to provide any additional monetary, operation, or maintenance assistance for the facilities. Additional monetary contributions should be unnecessary, however, as the projected cost of the Mittineague Park facilities was $10,000 when the license was issued in 1994.2 To ensure that the licensee meets their contribution obligation and that the specified funds are spent on facilities described in the agreement, the licensee should transfer $10,000 to the Town and file, for Commission approval, documentation of the transfer. The licensee's filing should include a signed statement from appropriate Town officials acknowledging the receipt of the funds. Further, the filing should include copies of the Town's records reflecting how the $10,000 contribution was dispersed. Given that construction of the facilities is minimal, we assume the Town will be able to complete construction within 2 Determination of cost for the facilities is made in the Analysis of Impoundment Access, included in the Environmental Assessment issued with the project license. 3 three years. Therefore, the above material should be filed with the Commission by December 31, 1998. With this modification, the financial assistance agreement should be approved. Because a financial assistance agreement has been reached between the Town and the licensee, the August 21 filing is correct in stating the filed material eliminates the need for filings pursuant to Articles 408 and 409. An alternate location is not proposed and subsequent habitat and wetland delineation studies, to be conducted by the licensee, are unnecessary. Pursuant to the above approval, Articles 408 and 409 should therefore be deleted from the license. The Director orders: (A) The financial assistance agreement filed on August 21, 1995, pursuant to Article 412 of the project license, as modified by ordering paragraph (B), is approved. (B) By December 31, 1998, the licensee shall file with the Commission documentation of the transfer of funds to the Town for the construction of impoundment access facilities at Mittineague Park. The filing should include documentation from appropriate Town officials acknowledging receipt of the funds and copies of the Town's dispersal records specifying how the $10,000 contribution was spent on the design and construction of impoundment access facilities in Mittineague Park. (C) Pursuant to the approval under ordering paragraph (A), Articles 408 and 409 are deleted from the license. (D) This order constitutes final agency action. Requests for rehearing by the Commission may be filed within 30 days of the date of issuance of this order, pursuant to 18 CFR  385.713. J. Mark Robinson Director, Division of Project Compliance and Administration