2009/09/16 Council Agenda Packet

proceeding is terminated. If any Permit has been denied or challenged,includes a -Material Modificationof the-Settlement Agreement;oris noir btiihied In a`tltti'e1y manner,the Parties shall confer to evaluate the effect of such event on implementation of this Settlement Agreement and the Project License and to seek to develop actions to respond to that event. The Parties recognize that a Permit delay or denial,or a permit that contains a Material Modification of the Settlement Agreement,in itself does not alleviate the Licensee's responsibility to comply with a license article but may be the basis for requesting FERC to amend the license. If the Parties do not agree on actions to respond to that event,a Party may initiate ADR pursuant to section S to address the issue of necessary actions to respond to Permit delays or denials or Material Modifications. In the event that the Parties do not agree on actions to respond to a Permit delay or denial or Material Modifications,then the Permit delay or denial or Material Modifications may constitute material new information or a basis for withdrawal pursuant to section 6. Nothing in this section shall be construed to limit the Licensee's right to apply for a Permit before issuance of the Project License,provided that any such applications shall not contain a Material Modification of the Settlement Agreement. 4.11 Reopener or Amendment of the Project License 4.11.1 Reopener by a Party Other Than the Licensee A Party other than the Licensee,may request FERC to reopen the license,or to open an annual license if necessary based on material new information including a substantial error or if required to fulfill statutory,regulatory,or court-ordered responsibilities.Each Party reserves all rights under applicable law to challenge any exercise of reserved authority at the time the agency exercises that authority, including any rights provided under Sections 4(e), 18,and 33 of the FPA,if the action would constitute a Material Modification of the Settlement Agreement or the Project License. 4.1 1.2 Amendment of Project License by Licensee 4.1L2.1 Amendments That Do Not Contain a Material Modification of the Settlement Agreement The Licensee may seek amendments of its Project License for operational improvements or efficiencies,routine amendments,or similar Project modifications that do not contain a Material Modification of the Settlement Agreement. Each Party reserves all rights under applicable law to challenge or comment on any application for a license amendment. DRAFT—CONFIDENTIAL SETTLEMENT DOCUMENT- 17 55