The town of Franklin acted appropriately by making public the terms of an out-of-court settlement offer extended to the town by Duke Energy.

The offer was aimed at getting the town of Franklin and Jackson County to drop their opposition to Dillsboro dam removal. Duke Energy hoped the offer would stave off a move by Jackson to use eminent domain to seize the dam and adjacent shoreline for the creation of a park.

Duke Energy insisted its offer should remain confidential, but the town of Franklin disseminated a copy of the offer to the media last week.

“They did it right,” said Mike Tadych, an attorney with the North Carolina Press Association who is an expert in public record and open meeting laws. “It would be illegal to enter into a confidential settlement agreement.”

Franklin leaders voted unanimously to reject Duke’s offer. Jackson County leaders likewise rejected it by a vote of 4 to 1.

Duke Energy said its offer was borne out of court-ordered mediation talks, which are supposed to be confidential.

It’s different when elected bodies are involved, however, Tadych said. Sunshine laws mandate openness by elected government bodies and trump any claim of confidentiality.

Attorney-client privilege entitled the town of Franklin and Jackson County to discuss Duke’s offer behind closed doors — which they both did. But once they formally voted on the offer, attorney-client privilege evaporated.

“As soon as it became water under the bridge, it became a public record,” Tadych said.

Elected leaders cannot keep what they are voting on secret. It would be akin to Congress voting on a bill, but not telling the public what was in it.

“You cannot vote by reference,” Tadych said.

As Jackson County leaders continue their fight against Duke Energy, an unassuming local lawyer that few have heard of has appeared as the county’s heavy-hitter against the politically powerful and uber-wealthy Fortune 500 utility.

Attorney Gary Miller, 52, a former business lawyer from New Orleans, has been hired to represent the county in its push to seize control of the Dillsboro dam owned by Duke. Jackson leaders plan to use eminent domain to take over the dam and adjacent shoreline and turn it into a river park. The move would thwart Duke’s plan to demolish the dam, achieving the county’s long-standing goal to save the dam.

Miller spent most of his career to date representing the corporate world. His expertise lies not in the courtroom, but in pulling off complex deals and financings rife with legal maneuvering, at times plowing new ground where precedent was lacking. Miller has negotiated deals between mega-corporations like Shell and Union Carbide. He also has represented casinos, developers, financial syndicates and other large organizations, both private and publicly traded.

“Historically I have been a transaction lawyer. I am typically a paper pusher,” Miller said, downplaying his lawyering past.

A paper pusher, perhaps, but mass quantities of extremely complicated, critically worded paper. Hundreds of pages with millions on the line should the other side manage to get a fast one by in the language. Paper with months of legal maneuvering and tedious research lurking behind the ink.

“Yeah, I’m good at that,” Miller said.

Paper pushing, in the world of lawyers, is how things get done. Jackson County Manager Ken Westmoreland said Miller’s background is a good match for “peculiarities” of the eminent domain case against Duke.

“His experience is in corporate law, working both for and against big corporations. Secondly, he specializes in real estate law, and the condemnation is basically a real estate issue,” Westmoreland said.

The most typical work for Miller involved commercial financings: a gigantic loan collateralized by corporate assets scattered across the county.

“They will hire attorneys in each state to give their opinion of the enforceability of the documents or modify them to make them enforceable,” Miller said.

When some of those assets resided in Louisiana — such as a deal involving an oil might putting up its refineries as part of the collateral — Miller was their guy

“It wasn’t the kind of stuff your average lawyer had knowledge about,” Miller said.

One of Miller’s most interesting jobs involved dueling casinos vying for a single gaming license in New Orleans. The state of Louisiana awarded the gaming license to one casino, while the City of New Orleans granted a lease to a different casino operator. Both groups felt they were entitled to the license — seemingly a no-win situation.

“The governor forced the two groups into a shotgun wedding and they formed a partnership to operate and build it,” Miller said. The joint entity that emerged went bankrupt before they finished construction, complicating an already sticky situation. Miller spent the next two years helping to sort out the mess. Skill in sorting out messes will be critical to resolving the bitter fight and test of wills between Duke and Jackson County.

The path that led Miller to Western North Carolina isn’t exactly a pleasant one. Miller is one of the thousands of Hurriane Katrina refuges who left their home city of New Orleans for good in the aftermath of the devastation and struck out for a new life. Miller hung a new shingle in Bryson City, and calls Sylva home.

Ironically, a life-long love of paddling drew him to Western North Carolina during that trying time. The paddling community is an ally in Duke’s plan to demolish the Dillsboro dam, as it would open up a new stretch of free-flowing river. Miller can frequently be found paddling the Tuckasegee in his free time, and until recently, was a member of American Whitewater, a paddling advocacy group that is a stalwart defender of dam demolition. Yet when it comes to tearing down the dam, Miller sides with the county in its fight to save it. Miller could not talk about specifics in the case or the county’s strategy.

The fateful storm

As Hurricane Katrina bore down on Miller’s former city of New Orleans, he sent his wife and two children away. But saddled with an elderly mother on oxygen who refused to leave, Miller, too, was forced to stay behind. Sadly, his mother did not survive the paralyzing power failures that accompanied the storm.

The next day, as Miller tried to make plans to get her body out of the city, his family reached him on his cell phone and warned him of the broken levees and rising water that would soon envelop the already ravaged city. Miller escaped in time, although three weeks would pass before he could finally get his mother’s body out.

While holed up at the home of extended family the next day, Miller got a call from his law firm giving him two choices: transfer to their Houston office or their Baton Rouge office.

“I wasn’t prepared to make a decision to move,” said Miller. “I told them ‘I’ll go off on my own.’”

Miller scrounged to find a rental house for his family in Lake Charles, La., but just as they got settled in, albeit with just a few suitcases between them, a mandatory evacuation was announced for Hurricane Rita.

Miller had given one of the family vehicles to his mother’s caretaker, who had no car of her own and was stranded at a major refugee camp in Dallas. So when the evacuation order came for Rita, he piled his wife, children, mother-in-law, two golden retrievers and a pet guinea pig into their only remaining vehicle and joined the mire of traffic crawling north.

Shortly after Katrina hit, Miller had received an email from John Burton, the then general partner of Nantahala Village Resort, asking if the family was OK. Miller’s family was a regular at the Village, and he had befriended Burton after years of vacationing there. Burton had offered to put them up — an offer Miller initially declined with the intention of continuing his life in New Orleans. But as Miller reflected on his life — no home, no possessions, no job and one family car — Miller contacted Burden to tell him they were on their way.

Burton put them up for free at the Village for six weeks while they figured out what to do.

“Having lived through Katrina and two weeks later being evacuated for Rita, to be honest I was a little gun shy,” Miller said of moving back to New Orleans. “I have lived through many hurricanes, but that was something that was overwhelming.”

Miller had vacationed in WNC as a kid, often to paddle on the Nantahala. He continued the tradition with his own family, and in 1999 he and his wife bought a lot with the intention retiring here one day. They decided to make the move sooner rather than later.

“After Katrina, things and money basically had no meaning to me. My priorities were completely restructured in terms of what was important in life,” Miller said. “When you are working for a Fortune 500 company, you are just helping an officer climb the corporate ladder and make money. I had worked on a lot of ‘sexy ‘things as lawyers call it, but here I can help people. It is more rewarding professionally and emotionally.”

Miller brought a few of his big corporate clients with him, however.

“Clients said, ‘We don’t care where you are as long as you have a phone, a fax and a computer,’” Miller said.

Miller said he hasn’t experienced culture shock. He was tired of the big law firm and city life, despite the big paycheck that go with them. Miller said he paid his dues, from the 3 a.m. phone calls from big money clients who feel like talking and must be humored to missing his kid’s bedtime night after night.

While many may believe Jackson County has little chance of winning against the likes of Duke, there’s little doubt that any settlement that goes the county’s way will have to involve a very complicated game of give and take. Whatever the outcome, Miller will be back in his old element in his new WNC home.

Jackson County appears to be on firm footing in its quest to seize the Dillsboro dam from Duke Energy as far as state law goes, but it is unclear whether the county could hit a roadblock from the Federal Energy Regulatory Commission.

Jackson County commissioners have voted to pursue condemnation of the Dillsboro dam and adjacent shoreline under the pretext of creating a river park. On the surface, recreation is grounds for condemnation under state law. Eminent domain law in North Carolina is complex to say the least, however, with seemingly endless exceptions and disclaimers written into the statute.

One pitfall Jackson County can cross off the list, though, is the North Carolina Utility Commission.

“I am not aware of any restrictions under North Carolina public utility law,” said Antoinette Wike, chief counsel for the N.C. Utility Commission.

That’s not to say counties can go around condemning any utility operation they please, such as coal plants or nuclear plants, and converting them into parks. Power plants of larger stature operate under a “certificate of public convenience and necessity” from the state. Considered integral to serving the public demand for electricity, those power plants would be protected from any foray into condemnation, Wike said.

But the Dillsboro dam is so old — nearly 100 years — and produces so little power, it never operated under a certificate of public necessity. Further, the power turbines at the dam have been off-line for five years.

“In this instance the Dillsboro dam and powerhouse have not been used for several years so the Utility Commission, as far as I know, doesn’t really have any jurisdiction over this,” Wike said.

Duke’s lack of upkeep on the Dillsboro dam could ultimately work against the utility in the condemnation fight. Maintenance on the dam was already in decline when major flooding on the Tuckasegee River in 2004 sidelined the hydro plant. Duke had already set its sights on demolishing the dam by then and chose not to invest in repairs to get it working again.

Prior to the flood, the two turbines in the powerhouse were capable of churning out just 225 kilowatts of power — although outside hydropower specialists say that the turbines could be retrofitted and additional ones added to make more power.

Had Dillsboro dam been operational, Duke may have been shielded by the state’s eminent domain laws. Statue allows for the condemnation of property owned by a public utility only if “the property is not in actual public use or not necessary to the operation of the business.”

Duke could try to claim that tearing down the dam is necessary to its operation. Tearing down the Dillsboro dam was considered environmental mitigation to continue operating its 10 other dams in the region — or so everyone thought. Special interests, from environmental agencies to paddling groups, supported dam removal following a three-year series of negotiations aimed at developing a mitigation package for the region that would allow Duke to renew its licenses for the other dams.

In a confusing ruling last summer, however, the Federal Energy Regulatory Commission disputed the notion that Dillsboro dam removal has anything to do with mitigation for the other hydro operations.

“The Commission is not bound to accept that view, and indeed, as the record demonstrates, we do not,” FERC ruled.

That could frustrate any claims by Duke that the dam’s removal is “necessary to the operation” of its business.

Duke may not be without recourse, however. The utility could turn to its powerful and long-standing ally in the fight against Jackson County: none other than the Federal Energy Regulatory Commission. FERC has consistently sided with Duke, from minor tiffs over language to major appeals.

FERC may — or may not — have something to say about Jackson County’s bold move to condemn the dam and halt its demolition.

“It would be premature to speculate on this matter at this point,” said Celeste Miller, spokesperson with FERC.

Miller said it is too early to know what if any sections of the Federal Power Act could come into play in this complicated situation.

The terms of Duke Energy’s counter-offer to Jackson County and the town of Franklin in exchange for dropping their opposition to Dillsboro dam removal have been made public.

Duke Energy made a confidential offer to their opponents two weeks ago in hopes of staving off a move by Jackson to use eminent domain to seize the dam. Jackson County commissioners voted 4 to 1 last week to turn down the offer. The Franklin town board followed suit this week with a unanimous vote to reject Duke’s offer.

Franklin Alderman Bob Scott made the terms of the offer public. Once the town board voted on the offer, it became a public record, he said. Scott also believes the residents of Franklin have a right to know what the town board voted to accept or reject on their behalf.

“The public body exists for one reason only and that’s to conduct the public’s business,” Scott said. Furthermore, Duke is a public utility operating as a monopoly in the region and should answer to the public as well.

Here is what Duke has offered Jackson County in exchange for dropping their opposition to dam removal:

• Pay $150,000 to help create a river park along the Tuckasegee River in Dillsboro.

• Provide 200 hours by a Duke staffer to write grants to assist with the river park.

• Pay $75,000 to help Jackson County with the upkeep and management of a boat launch Duke already has plans to build along the Tuck, but will be turning over to the county for maintenance.

• Agree not to seek damages or attorney fees against Jackson County for holding up permits Duke needed to dredge sediment behind the dam. Duke had to go to court to get the permits.

• Speeding up payment of $350,000 for recreational amenities on the Tuckasegee and Lake Glenville that had been already promised. Duke had previously pledged to pay the mitigation sum within 15 years, but would speed it up to five. Duke similarly offered to speed up the already-promised sum of $40,000 for sediment control initiatives.

Here is what Duke had offered Franklin:

• Pay $10,000 for additional amenities at a recreation area on Lake Emory. Duke plans already call for a boat put-in and picnic tables.

In exchange, Duke wanted Jackson and the town of Franklin to drop all legal and public opposition, including challenging Duke in the news media. The offer also was contingent on the majority of terms remaining confidential.

Franklin leaders claim Duke has shortchanged their residents in the way of mitigation for the utility’s dam and powerhouse the Little Tennessee River at Lake Emory. Removing the Dillsboro dam was supposed to count as mitigation credits for Duke’s hydro operation at Lake Emory, but Franklin leaders fail to see the benefit of dam removal in Dillsboro to their residents in Franklin and want to see more direct benefits, primarily around Lake Emory.

Despite the looming threat by Jackson County to win control of the Dillsboro Dam using eminent domain, Duke Energy announced that it will begin preparing for its demolition this week by dredging the backlog of sediment from behind the dam.

It marks yet another interesting twist in the increasingly tit-for-tat saga between Jackson and Duke.

Jackson County commissioners voted 4 to 1 last week to launch eminent domain proceedings against Duke to take ownership the Dillsboro dam and adjacent shoreline for the creation of a riverside park. State law allows for the use of eminent domain for parks and recreation.

The move was a last-ditch effort by Jackson County to stop Duke from tearing down the dam. But Duke seems unfazed. The company sent out a press release this week stating that it would begin prepping for sediment removal in anticipation of dam demolition in early 2010.

State and federal environmental agencies have insisted Duke dredge behind the dam to keep the backlogged sediment from flushing downstream and harming the aquatic ecosystem when the dam is removed. Duke is being required to dredge 70,000 cubic yards of the estimated 100,000 cubic yards behind the dam.

It will take six months to remove the sediment, according to Duke. Dam demolition, if not halted by Jackson’s move to seize the dam, would begin in early 2010.

Prep work to dredge the sediment could begin late this week or early next week. Duke will take precautions to minimize the impacts of the earth-moving operation in the river, according to Fred Alexander, Nantahala District Manager of Duke Energy Carolinas.

“We recognize this will be an environmentally sensitive operation, and we are taking great care to follow all appropriate environmental and regulatory requirements,” Alexander said in a statement.

Duke plans to process the sediment and hopes to find a market for its reuse in the construction industry or other uses.

Earlier this year, Jackson refused to grant Duke the permits it needed to dredge the sediment. Duke turned to the courts to demand the permits and won. Jackson was not only forced to relinquish the permits, but faces the prospect of reimbursing Duke’s legal costs to secure the permits.

For eight-tenths of a mile behind the dam, the Tuckasegee River is a wide, slow-moving backwater. Following dam removal, the area will be restored to natural river conditions, Duke said in a press release.

“There will be a significant environmental benefit once we have removed the dam and powerhouse,” said Alexander.

The free-flowing river will create new paddling and fishing opportunities and allow for natural migration of aquatic species.

John Boaze of Fish and Wildlife Associates has argued that a fish passage around the dam could accommodate migration for some species without removing the dam.

Chairman Brian McMahan

“I believe that river belongs to the people of the United States of America. That’s our river. Yes we have benefited from the production of power, but it still belongs to the people. I don’t argue the fact that Duke should be allowed to make a profit, that’s part of capitalism. At the same time, if they are going to use our river to generate power, shouldn’t they compensate the people here a little bit more? If you look at what they have offered, it is pennies compared to what they are making off our river. The people have pretty much been ignored.”

Commissioner Joe Cowan

“We are all elected by the people of Jackson County. The vast majority of my constituents have said to me ‘Help save the Dillsboro dam.’ I think it is time to stand up to Duke I don’t care if it does cost a million dollars, I think we will beat Duke and will prevail in this lawsuit because we have facts on our side. Never have I seen a large energy corporation come in and take so much from a people of a county and want to take more and more over the next 40 years and give back so little.”

Commissioner William Shelton

“This has been a very very tough decision for me. I have gone back and forth. Unfortunately it comes down to whether you vote your heart and morals or do you vote with your head? After lots and lots of tossing and turning I’ve done the very best I could to put my finger on the pulse of my district and I am finding overwhelming support to save the Dillsboro dam. After a long difficult decision, I am going to have to vote with my heart on this.”

Commissioner Mark Jones

“I think we should continue the fight. The money we have spent already is the vast majority of the money we are going to have to spend. The economic problems the town of Dillsboro has gone through in recent years, this would be a tremendous benefit.”

The lone dissenter: Commissioner Tom Massie

Jackson County commissioners are fool-hardy if they think they can win a fight of this magnitude against Duke Energy, Commissioner Tom Massie expressed to fellow board members for the umpteenth time this week.

Massie nearly begged his fellow commissioners not to go through with the vote for condemnation.

“Condemnation is very, very risky. We are breaking new ground. There is no if’s and’s or but’s. This has never been done in the state of North Carolina, this kind of condemnation,” Massie said. “I am not a gambler. I wouldn’t spend a penny in a poker game. I refuse to gamble the taxpayers’ money of Jackson County with this kind of risky venture. I wouldn’t do it with my money, and I wouldn’t do it with theirs.”

During the county commissioners lengthy closed-door discussion leading up to the vote this week and last week, audience members relegated to the hallway outside the meeting room would occasionally walk over to the door and peer through a small window to see what was going on inside. And more often than not, Massie was the one doing the talking, growing animated at times as his fellow commissioners patiently listened but were ultimately unmoved.

Massie agrees with the rest of the board on one count: Jackson got a raw deal from Duke, he says.

“I didn’t think it was fair then I don’t think it is fair now,” Massie said. “My heart says we should continue this argument and fight but my head says this is not good business. This is a time we need to put emotion aside and we need to make prudent cold calculating business decisions about what is best for the Jackson County taxpayers and residents of this county.”

Massie said the writing is on the wall, and has been for a long time now.

“All the federal and state agencies involved in this thing have sided against Jackson County and are for dam removal. We have lost every single appeal we have had in this fight for the past five years,” Massie said.

Massie said he hopes he is proven wrong and the county prevails this time.

Why does Duke want to tear down the dam?

Dam removal is tied to the larger issue of mitigation for Duke’s hydropower operations in the region. Duke operates 10 other dams on five rivers in the region. The permits for those dams are up, and to get new ones, Duke must offer environmental and recreational mitigation, compensating the public for the use of the rivers to produce profitable hydropower.

Tearing down the Dillsboro Dam is the cornerstone of Duke’s mitigation plan. Paddlers and environmental agencies are excited to see the dam go as it will restore a stretch of free flowing river. Others think Duke is unloading an aging dam it didn’t want anyway under the guise of mitigation.

Is there hope for a compromise yet?

Yes. Duke could at any time make Jackson County a counter-offer to back off condemnation proceedings, or vice-versa.

What exactly does Jackson plan to take from Duke?

Jackson County voted to initiate condemnation proceedings against the Dillsboro dam, the powerhouse adjacent to the dam and shoreline property Duke owns around the dam on both sides of the river.

Can Jackson County legally take the dam from Duke?

Jackson County wants the dam and surrounding property to make a park. Counties are granted the power of eminent domain to seize property for several public uses. One of those is recreation, which the county cited as its reason for the condemnation. Recreation was used to as grounds for eminent domain in the creation of the Great Smoky Mountains National Park.

What would Jackson do with the dam?

Jackson County leaders previously said they wanted to operate the dam themselves as a source of green power rather than see it torn down by Duke. Making electricity isn’t just cause for a county to flex eminent domain power, however. But once Jackson has control of the dam under the guise of recreation, it could theoretically try to put the dam in operation for hydropower.

What happens now?

Jackson County’s next step is to have a survey and appraisal of the property it plans to condemn. Following the vote Monday night, the county must wait at least 30 days before it can formally file condemnation proceedings through the courts. As for Duke, representatives at the commissioners meeting said their next step is to wait and see if Jackson follows through with formal proceedings.

How much will Jackson have to pay for the property?

Jackson will hire an appraiser to determine fair market value for the property. The dollar value will be filed as part of the formal condemnation proceedings in court. When Duke formally initiates the proceedings, it has to put up the money right then. Whatever dollar value Jackson County puts on the dam and surrounding property must be deposited in full in an escrow account held by the court.

If Duke disagrees with Jackson’s offer, it can sue for more money. The ultimate decision would rest with the courts, possibly a jury trial.

Can Duke challenge the value Jackson puts on the property?

Yes. The most common protest in a condemnation proceeding is over the monetary value being offered for the property. Duke can go to court claiming the market value of its property is more than what Jackson says it is. Duke’s legal argument would center around what’s a fair price rather than the ideological premise of condemnation.

Can Duke challenge Jackson’s use of eminent domain?

Yes. Duke could challenge whether Jackson County has just cause for the condemnation and argue that the dam is not an integral to the recreation plans, although this type of legal challenge to eminent domain is rarely attempted.

The state spells out grounds for eminent domain, one of which is recreation. Whether the particular recreation project is a good idea is not legal grounds for contesting it.

“To say, ‘Well we don’t think it is a very good project’ isn’t going to do very much,” said Charles Szypszak, an expert in public law with the Institute of Government at UNC-Chapel Hill.

Can Duke hurry up and tear down the dam?

Duke still owns the dam for the moment. However, hurrying up and tearing down the dam while Jackson gets its ducks in a row for condemnation is logistically impossible.

Before Duke tears down the dam, it is mandated to dredge 70,000 cubic yards of back-logged sediment from behind the dam to prevent it from washing downstream when the dam comes out. The dredging would take approximately five months, according to Fred Alexander, Duke spokesperson.

The target date for dam removal to begin was January 2010. That would get Duke outside the window for spawning season of the endangered Appalachian elktoe mussel, which lives downstream of the dam.

If tearing down the Dillsboro dam was Duke’s version of environmental mitigation, what will serve as mitigation if the dam stays?

This is unclear and a matter of great debate. Duke says if the dam stays, it will be required to forgo some of its power generation at the much larger dam upstream at Lake Glenville.

To make hydropower at Lake Glenville, Duke diverts water out of the Tuckasegee River and sends it for miles over land through giant pipes to a power plant before finally being returned to the river. The more water Duke diverts from the river, the more power it can make. The same goes for hydro operations at its other bigger dams, like Nantahala Lake and Bear Lake.

In the meantime, however, several miles of the river downstream of those dams are left with little water, harming the aquatic ecosystem.

Removing the Dillsboro dam was supposed to mitigate for robbing other stretches of the river of water. If the dam doesn’t come out, environmental agencies could insist on Duke restoring more water to those stretches currently being by-passed.

The less water Duke is allowed to divert, the less power it can make at its large Lake Glenville power plant. Because of this, Fred Alexander, a spokesperson for Duke, argues that keeping the Dillsboro dam would actually mean a net loss in hydropower. The amount of power produced off the small Dillsboro dam could not make up for the power production lost at Lake Glenville, Alexander said.

Alexander said it is an either-or proposition. If the Dillsboro dam doesn’t come out, Duke will have to restore more water to the dewatered sections, and thereby lose some of its hydropower capacity.

The mitigation package on file with the Federal Energy Regulatory Commission says only that failured to tear down the dam “may nessicitate” a re-examination of how much water is being diverted from the river below Duke’s larger dams.

John Boaze, an environmental consultant with Fish and Wildlife Associates, said it is not necessarily and either-or proposition, but that other mitigation may be an option contingent on approval by state and federal environmental agencies.

“What becomes of that your guess is as good as mine,” said Boaze.

Jackson County has long held that tearing down the dam was a poor excuse for mitigation that benefited a small segment of the population, namely paddlers. Jackson would rather see greenways along the river, or an environmental trust fund based on a percentage of Duke’s profits off the dams.

Jackson County’s decision to take the Dillsboro dam through eminent domain is a bold next step in the relicensing saga that has been playing out for years.

Commissioners voted 4-1 Monday night to use one of the strongest powers they possess to get what they believe to be a fair deal from Duke Energy. Taking the dam through eminent domain promises a messy legal fight. But it’s the end game that matters here, and a majority of their constituents are — in a word — insulted by the mitigation package Duke has offered.

As we’ve noted before, making the removal of a community icon the centerpiece of the giant utility’s environmental mitigation effort just didn’t make many people happy. Yes, the free-flowing river will be a boon to paddlers and restore a lengthy stretch of the waterway to its “pre-Duke” status, but other considerations came into play.

This dam, small in size and in plain view of thousands of citizens every day, has gained a value aside from its hydropower production. It has become a part of Dillsboro, one of those man-made objects that give residents a sense of place. As soon as Duke began pushing the idea of removing the dam, many started speaking up to voice their surprise and displeasure.

Here’s the rub for Duke: if the giant utility had come to the table with a better mitigation package, removing the dam likely could have happened. A look around the region proves that in other cases where utilities sought federal licenses to operate hydropower plants, more tangible mitigation packages were offered.

Two relicensing arrangements nearby — Alcoa to the west and Progress Energy’s Pigeon River deal to the east of Jackson — offered big-time, lasting packages. The Progress Energy solution — creating the Pigeon River Fund — has, almost 20 years later, helped every school child in Haywood County gain intimate knowledge of the watershed, in addition to providing money for dozens of environmental and riparian efforts to help landowners and nonprofit organizatios.

Representatives from this newspaper attended many of the stakeholder meetings that led to Duke’s decision to take down the Dillsboro dam. During the relicensing process for all of its hydropower plants in Western North Carolina, Duke invited citizens, representatives of various state environmental and licensing agencies, and others to a multi-year series of meetings. Many of those supported the dam removal, and so Duke thought it was going down the right path.

A glimmer of hope for compromise arose during mediation that took place over the last couple of months. But those privy to those negotiations obviously did not think Duke offered enough.

We somehow wish the energy company could become a partner in this effort to make Jackson County a green energy leader, not an opponent. Unfortunately, it appears it will be left to the courts to determine a fair outcome.

Five years into a bitter fight over the fate of the Dillsboro Dam, Duke Energy showed its first sign of budging this week.

Following a mediation session in Washington, D.C. Duke pledged to make Jackson County a “counter offer” in the tug-of-war over the dam. Duke wants to tear down the dam, and Jackson County wants to save it. The case is currently before the U.S. Court of Appeals.

News of the counter offer came at the end of a lengthy closed meeting on Monday (June 1) between commissioners, two attorneys and a third one on conference call.

Word that the Dillsboro dam would be a topic of discussion at the commissioners meeting had apparently circulated among dam supporters, who turned out around 15 people included Dillsboro town leaders, merchants and residents donning green “save the dam” tags. Several spoke up for saving the dam during the public comment period at the start of the commissioners meeting.

When commissioners retreated into closed session, spectators packed into the small foyer outside the room and loitered about for an hour and a half in anticipation of an announcement by the county.

When the crowd filtered back in, Commissioner Chairman Brian McMahan reported the board would hold off on any action regarding the dam until it had a chance to see Duke’s alleged offer. Jackson County commissioners gave Duke until the end of the day Friday (June 5) to submit their offer. Commissioners will reconvene at 4 p.m. Monday, June 8, to talk about it.

When commissioners stood to adjourn the meeting, McMahan walked over to where Duke’s attorney was sitting in the audience and pointedly said, “If you are serious about this, we need to see that counter offer by 5 p.m. Friday.”

Trump card or bluff?

The mediation between Jackson County and Duke last week was not the first in their five year history. Previous attempts at mediation had not been successful, however.

Duke may have finally been spurred toward cooperation by a looming threat by Jackson County to use its ultimate trump card: condemning the dam under the right of imminent domain. Jackson first broached the idea publicly almost a year and a half ago. It has resurfaced in recent months.

The vote that Jackson County commissioners postponed Monday night was presumably the one to set the wheels of condemnation in motion.

Fred Alexander, a Duke spokesperson, protested the notion that imminent domain was an option.

“There is no legal basis for the condemnation of Dillsboro dam,” Alexander told commissioners. “The county is under a Catch 22. Under the Federal Power Act, the county can only condemn the Dillsboro dam if it plans to maintain it as a hydropower plant. However, North Carolina law only allows the county to condemn for nine specific purposes, none of which include operating a dam.”

Other opinions hold that Jackson County use the right of imminent domain to seize ownership of the dam, and there would be nothing Duke could do about it.

“There are plenty of purposes the county is authorized to use imminent domain for,” said Charles Szypszak with the Institute of Government at UNC-Chapel Hill. “If the purpose is within one of those there is almost no chance of contesting it. There is very little constraint. A challenge is very rarely successful.”

Parks and recreation is one accepted justification behind imminent domain. Coincidentally — or maybe not — the county recently hired a firm to develop a conceptual design for a river park that uses the Dillsboro Dam as a focal point.

Jackson County would have to pay Duke fair market value for the dam. Duke could challenge the offer price in court.

Dillsboro dam supporters were hopeful than Duke may be coming around.

“It sounds to me like the pendulum is swinging,” said Dave Waldrop, who spent his boyhood fishing around the dam. Waldrop said whatever this counter offer is, however, better involve keeping the dam.

A long road

Jackson County has spent more than five years fighting Duke Energy’s plans to tear down the Dillsboro dam. Tearing down the Dillsboro dam is the cornerstone of Duke’s environmental mitigation plan for its network of hydropower operations in the region.

Jackson County commissioners would rather see another form of mitigation that would benefit a larger sector of the population, and have proposed cash payments instead that Jackson County could put toward a greenway along the river or environmental initiatives, along with turning ownership of the dam over to the county.

Jackson County commissioners got their first look last week at a master plan for a Dillsboro river park — a plan that prominently features the controversial dam — on the same night they spent nearly three hours in closed session discussing their legal fight with Duke Power over the fate of the dam.

Jackson County and Duke Energy have been locked in a lengthy battle over the dam. Duke wants to demolish it and county leaders want to save it.

The county contracted with Equinox Environmental of Asheville to develop a conceptual design for a park along the river in Dillsboro. The inclusion of the dam and powerhouse as a focal point for the river park surprised some, however, including Commissioner Tom Massie. Massie, who has unsuccessfully prodded the others commissioner to give up in their fight against Duke, seemed perplexed over why the dam appears as a focal point when its demolition is all but imminent

“I’d like to say that Equinox Environmental does wonderful work, and that this is a good plan,” said Massie after a presentation by landscape architect Dena Shelley of Equinox. “But I guess, Mr. Chairman, I’m missing something here. Does this mean that Duke has given in to Jackson County and said the dam could stay?”

Commissioner Chairman Brian McMahan said the park could be built with or without the dam, and Equinox’s Shelley concurred with McMahan.

“We had in mind that the plan could work with or without the dam,” Shelley said.

The park, if built, would radically change the riverfront on both sides of the Tuckasegee in and around Dillsboro. The conceptual design includes river put-ins for boaters, river viewing and fishing areas, parks on both sides of the river connected by a river walk, plus an extended greenway. It was designed to entice anglers, boaters and pedestrians, and would be tied into downtown Dillsboro with footpaths and signage.

“The idea was to create a destination for recreation and tourism in Dillsboro,” said Shelley.

Commissioner Joe Cowan said he hadn’t had time to study the plans, but on first glance he was impressed.

The plan even incorporated turning the old powerhouse it into a craft center or some other retail business and had dam viewing areas.

Following the presentation, commissioners went into closed session to discuss their legal battle with Duke over the Dillsboro dam. Tearing down the dam would serve as the centerpiece of Duke’s environmental mitigation, required to offset the impacts of its other hydropower operations in the region.

Jackson County, however, wants to keep the dam and force Duke to perform other mitigation instead, such as an environmental trust fund. While Jackson has lost several appeals against Duke, the county’s attorney on the issue claimed Jackson held the ultimate trump card: condemning the dam with the power of imminent domain and taking it over to operate as a source of green power. That idea appeared to die last summer, however.

The closed session last week (May 18) lasted until after 11 p.m. but no action was taken afterward. Among those attending the closed session was Gary Miller, a lawyer who aided Dillsboro Inn owner TJ Walker in his opposition to Duke.