Low Impact Hydropower Institute

319 SW Washington Street, Suite 709

Portland, OR 97204-2618

Tel. (503) 227-1763 · Fax (503) 223-8544

www.lowimpacthydro.org

June 3, 2002

Mr. Gary Marcus, President

Mr. Ron Neet, CPE, Vice President of Operations

Frontier Technology, Inc.

1580 Valley River Dr., Suite 290

Eugene, OR 97401

Subject: Certification of the Falls Creek Hydroelectric Project

LIHI Certificate No. 00004

Dear Mr. Marcus and Mr. Neet:

I am delighted to report that the Institute’s Governing Board has determined that the Falls Creek Hydroelectric Project, FERC No. 6661, meets the Low Impact Hydropower Certification Criteria. An original Low Impact certificate will be forwarded to you once the Governing Board Chair and Secretary have executed it.

In reaching its decision to certify the Falls Creek facility, the Low Impact Hydropower Institute’s Governing Board reviewed the application for certification, as well as the Application Reviewer’s report and the Staff report. Both reports concluded that the facility met the certification criteria and should be certified; copies of both reports are attached. The Board’s vote to certify Falls Creek as a Low Impact facility was unanimous. I have confirmed with Suzanne Wallace (the sole public commenter on the application) that she has no objection to certification and will not appeal. As a result, we are able to issue the certification effective today, June 3, 2002.

The certification of Falls Creek is valid for five years and will expire on June 3, 2007. During this time, you may market the Falls Creek facility as a certified Low Impact Hydropower facility. Certification by the Institute also makes the power produced from the Falls Creek facility eligible for other “green” power certification programs, such as Renew 2000 here in the Northwest.

It is your responsibility to maintain compliance with the certification criteria and to notify of us of any changed conditions relevant to the certification. This could include changes in agency recommendations, or changes in operations. You will also be asked to fill out a short form each year to confirm compliance during the preceding year. The Institute may also conduct occasional follow-up checks with you and/or relevant resource agencies to ensure that the Falls Creek facility remains in compliance.

I am enclosing for your information a copy of our Certification Use Requirements (addressing the language to be used for describing a Low Impact Hydropower Facility for marketing purposes), our Compliance standards and the penalties for non-compliance, as well as current information about renewing your certification. The Certification Use Requirements and Compliance standards will be a part of your certificate, but I provide them to you now in case you have any questions.

If the Institute identifies a problem with Falls Creek’s compliance with the certification criteria, it will evaluate the situation and take any necessary actions. In the case of non-compliance, possible responses include the suspension or revocation of the certification. Factors to be considered would include the scope, duration, and intensity of any non-compliance, its effects on the environment, whether the violation was intentional or not, and whether or not there was a valid reason (e.g., public safety) for the non-compliance.

Thank you again for your interest in the Low Impact Certification Program, and congratulations on securing Low Impact certification (the first in Oregon). As always, do not hesitate to contact me if you have any questions, or if I can be of any assistance.

Sincerely,

Lydia T. Grimm

Executive Director

Enclosures:

Maintaining and Renewing Certification

Application Reviewer’s Report

Staff Report

cc: Public files

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