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88–122 PDF 2014

S. HRG. 113–292 

TOLEDO BEND 

HEARING 

BEFORE THE

COMMITTEE ON 

ENERGY AND NATURAL RESOURCES 

UNITED STATES SENATE 

ONE HUNDRED THIRTEENTH CONGRESS 

SECOND SESSION 

TO

DEVELOP IDEAS REGARDING STEPS THE FEDERAL GOVERNMENT CAN 

TAKE TO INCREASE THE ECONOMIC BENEFITS OF THE TOLEDO 

BEND PROJECT TO THE REGION 

MANY, LA, MAY 17, 2014 

( 

Printed for the use of the 

Committee on Energy and Natural Resources 
(II) 

COMMITTEE ON ENERGY AND NATURAL RESOURCES 

MARY L. LANDRIEU, Louisiana, Chair 

RON WYDEN, Oregon 

TIM JOHNSON, South Dakota 

MARIA CANTWELL, Washington 

BERNARD SANDERS, Vermont 

DEBBIE STABENOW, Michigan 

MARK UDALL, Colorado 

AL FRANKEN, Minnesota 

JOE MANCHIN, III, West Virginia 

BRIAN SCHATZ, Hawaii 

MARTIN HEINRICH, New Mexico 

TAMMY BALDWIN, Wisconsin 

LISA MURKOWSKI, Alaska 

JOHN BARRASSO, Wyoming 

JAMES E. RISCH, Idaho 

MIKE LEE, Utah 

DEAN HELLER, Nevada 

JEFF FLAKE, Arizona 

TIM SCOTT, South Carolina 

LAMAR ALEXANDER, Tennessee 

ROB PORTMAN, Ohio 

JOHN HOEVEN, North Dakota 

ELIZABETH LEOTY CRADDOCK, Staff Director 

SAM E. FOWLER, Chief Counsel 

KAREN K. BILLUPS, Republican Staff Director 

PATRICK J. MCCORMICK III, Republican Chief Counsel 
(III) 

C O N T E N T S 

STATEMENTS 

Page 

Curtis-Sparks, Linda, Director, Sabine Parish Tourism Commission ................. 14 

Freeman, Kenneth A., Mayor, Town of Many, LA ................................................ 17 

Goodeaux, Ned, Chairman, Board of Commissioners, River Authority, State 

of Louisiana .......................................................................................................... 1 

Landrieu, Hon. Mary, U.S. Senator From Louisiana ........................................... 1 

Long, Gerald, Louisiana State Senator, District 31 .............................................. 6 

Pratt, Jim, Executive Director, Sabine River Authority, State of Louisiana ...... 7 

Ruffin, William, President, Sabine Parish Police Jury ......................................... 18 

Sabine River Authority of Texas ............................................................................ 26 

Williams, Bobby ....................................................................................................... 29 

(1) 

TOLEDO BEND 

SATURDAY, MAY 17, 2014 

U.S. SENATE, 

COMMITTEE ON ENERGY AND NATURAL RESOURCES, 

Many, LA. 

The committee met, pursuant to notice, at 10:30 a.m. at the Cypress Bend Conference Center, Many, Louisiana, Hon. Mary 

Landrieu, chair, presiding. 

OPENING STATEMENT OF HON. MARY LANDRIEU, U.S. 

SENATOR FROM LOUISIANA 

The CHAIR. Welcome this morning to the Senate Committee of 

Energy and Natural Resources. 

We’re going to begin by just introducing Ned Goodeaux, who is 

going to introduce his Board members and a few dignitaries in the 

audience. 

Then I will do an opening statement and we’ll hear from our 

panelists on this important subject. 

But first, let me just say how wonderful it is to be here in Sabine 

Parish, to be back here at Cypress Bend. I’ve had the pleasure of 

coming many times. It’s wonderful when I actually get to spend not 

one, but two nights. So I was here last night, will be staying again. 

So thank you all for your hospitality. It really is one of the most 

extraordinary and beautiful places in all of our State and really in 

the whole southern region of the United States. So I thank everyone for joining us for this important discussion. 

So, Ned, let me turn it over to you. If you’ll just use Senator 

Long’s microphone and introduce your Commissioners and thank 

you so much for your leadership and anybody else you want to introduce in the audience. 

STATEMENT OF NED GOODEAUX, CHAIRMAN, BOARD OF 

COMMISSIONERS, RIVER AUTHORITY, STATE OF LOUISIANA 

Mr. GOODEAUX. Thank you, Senator. 

Let me say first how really great it is to have you back in the 

Parish, to have you come by and look at our facilities. We’d just 

like you to make more trips, if at all possible sometimes. You know, 

if you can get out of Washington, get down here and have some 

fun. 

[Laughter.] 

The CHAIR. Hooray for that. Yes. 

[Laughter.] 
2 

Mr. GOODEAUX. My name is Ned Goodeaux. I am the Chairman 

of the Board of Commissioners for the River Authority, State of 

Louisiana. I represent Sabine Parish. 

I have several of the board members, out of the 13 board members from the State, up and down the waterway here of the Sabine 

River. 

From Sabine Parish, I have Mr. Ron Williams. 

From Sabine Parish, I have Mr. Bobby Williams. 

From Beauregard Parish, Mrs. Dale Scott. 

The CHAIR. Would you all stand up and just stay standing, 

please? 

Alright. 

Mr. GOODEAUX. Those are the only board members out of the 13 

that was able to be here this morning. 

[Applause.] 

Mr. GOODEAUX. Thank you guys for coming. 

[Applause.] 

Mr. GOODEAUX. Also, Ms. Scott was 30 years as a City Councilwoman in DeRidder just south and her niece, Ms. Kim Moore is the 

newly elected City Councilwoman from down in that area. 

The CHAIR. Please stand so we can give you a round of applause. 

Thank you all. 

[Applause.] 

Mr. GOODEAUX. Thank you all for coming. 

[Applause.] 

Mr. GOODEAUX. One last that probably for the River Authority 

that has to carry the biggest stick is always his phone ringing from 

the staff of Sabine River Authority, Mr. Carl Chance over our 

Shoreline Management Department. 

Thank you. 

The CHAIR. Thank you, Carl. 

[Applause.] 

Mr. GOODEAUX. That, Senator, is our River Authority personnel 

that are here today. 

Thank you again. 

The CHAIR. Thank you very much, Ned, so appreciate it. 

Let me just begin by giving a short opening statement and set 

the stage for why we’re here this morning and the significance of 

this meeting. I hope to have several additional informal meetings 

as this project unfolds. 

But as you all know, I don’t have to share with the local community here, that Toledo Bend has driven significant economic development including recreation, ecotourism, just the beautiful landscape of the water and has driven development in this area including hydropower since the early mid 1960s. The reservoir filled up 

in 1968. Plans for it were laid prior to that. Today in 2014, we’re 

here to talk about the future. 

Today we look ahead to the next 50 years and how we can responsibly leverage the area’s hydro energy assets and obvious and 

abundant natural resources, which is visible to the eye and to a 

small child as well as to an adult, how we can create more high 

paying jobs and spur commerce and recreation in this area. Toledo 

Bend has huge potential, economic potential. I’m committed to getting to the Federal status and local plans to unleash this potential. 
3 

You all know that the Toledo Bend Reservoir is over 80 miles 

long. It has more than 1,200 miles of shoreline which is both sides. 

That’s about the same distance, if stretched out, between Louisiana 

and Washington, DC. That is quite an enormous length of property. 

It’s the largest manmade body of water in the South, the largest. 

It’s the fifth largest in the United States not owned by the Federal 

Government. In terms of surface area and storage, it’s the largest 

reservoir in the country not owned by the Federal Government. So 

it’s truly a treasure and an extraordinary asset for our part of the 

world. 

Despite its extraordinary size and beauty it might be one of the 

least well known large reservoirs in the United States. This hidden 

gem and treasure can and should be enjoyed, not only by our communities nestled in close proximity, like Many, Zwolle, Logansport 

and so many others, but by people all across the region and Nation. 

In fact today there are over 2,000 anglers fishing in some of the 

best bass waters in the world. 

Toledo Bend’s primary purpose, of course initially, was to unleash hydropower for the region and that still is a very important 

part of what Toledo Bend’s mission is. As you know, when it was 

developed each State, the states that border this Toledo Bend, 

Texas and Louisiana, made a decision and an agreement that each 

would get half of the water generated. It’s about 1.87 billion gallons 

of water per day the reservoir delivers for use by families, businesses and farms in two States. 

The economic value of this water supply cannot be overstated. 

The availability of fresh water from the reservoir is one of the main 

reasons why Sasol chose West Lake as a site for a new massive gas 

to liquids manufacturing facility that will create in Louisiana 

twelve hundred permanent, high paying jobs in the area south of 

us around Lake Charles and 5,000 construction jobs. 

Now these construction jobs might be temporary, but let me add 

that with the effort that I’m making with our State leaders and 

Senator Long knows most certainly about our push for closing the 

skills gap in Louisiana, that while some of these construction jobs 

are temporary the skills that people are able to, with our partnership with Federal, State and local government and the private sector, are permanent. The skills that people are able to achieve for 

themselves will permanently stay with them and be able to, over 

long periods of time, sustain and grow and develop the economic 

power of their families and their communities. So this should not 

be underestimated. 

One clear example of how Toledo Bend creates wealth for communities around it. That’s just one example. But you can look here 

and see the recreational benefits, clearly, which are also equally 

important. 

The dam at Toledo Bend generates 81 million watts of 

hydroelectricity which is enough to power 16,000 homes in Louisiana on a yearly basis. Two companies on either side of the line, 

Entergy and Cleco, buy the power the dam produces under a long 

term contract that expires in 2018, just 4 years away. This is a 

clean and affordable hydropower that diversifies electricity supply 

in Louisiana as part of the all or the above energy policy that I 
4 

support and champion in Washington as the new Chair of the Energy and Natural Resources Committee. 

I am committed as Chair of this committee to keep Louisiana in 

the driver’s seat to redesign the next big pillars of energy policy for 

our Nation for the next 20, 30 and 40 years. It’s a gavel we don’t 

often get. I’ve got it now. It’s really important for me to be able to 

wield it on behalf of communities like this and communities all 

over our State and Nation. 

I most strongly believe that America can be an energy superpower. We can create more energy resources here at home using all 

the above, hydro, nuclear, gas, oil, alternative, biofuels, etcetera 

and be an exporter of electricity, power and energy to our allies 

and friends around the world to push out and to have even greater 

influence in the geopolitics of our Nation and world. You only have 

to look at what’s happening in the Ukraine today and the thumb 

that they’re under from Russia to understand the power of when 

a country can be, like the United States, self sufficient in its own 

energy and not have to rely on an unfriendly neighbor, particularly 

one that does not share democratic values. 

So we come back here to Toledo Bend. It’s one of the best places 

in the United States for bass fishing, one of the top spots for tournaments in the country. As I said, the Big Bass Splash is taking 

place as we speak. 

Fishing tournaments and recreational fisherman have been important drivers of economic growth in this region. They will continue to do so. Hundreds of hotel rooms including the resort that 

we’re in today, RV parks and other facilities generate over 38 million in economic activity for our State each year. 

I’d like to commend all the people in this room and this witness 

table for all the efforts that you’ve made over the last several decades to make this happen. I’m here today to tell you that I want 

to work more closely with you as we develop what the next 30, 40 

and 50 years looks like for this community and for our State. 

Because it generates and sells electricity to utilities, Toledo Bend 

falls under the jurisdiction of the Federal Energy Regulatory Commission, called the FERC. I am committed to make sure that this 

regulation, which is necessary, does not stymie this area from developing its full potential. FERC, under my jurisdiction in the Energy Committee, is in the process or under the jurisdiction of the 

committee that I Chair, is in the process of issuing a new license 

to Toledo Bend. They’ve been in the process of asking for a license. 

The initial 50-year license expired in 2013. So we’ve been operating on a temporary license ever since. FERC is in the process of 

deciding whether that permit should be extended for 30 years, 40 

years or 50 years. We’re asking for 50 years. We’re going to lay 

down some testimony in the congressional record today as to why 

that would be important. 

The two River Authorities have done a great job of keeping the 

FERC relicensing process from spinning out of control and compromising the current benefits of Toledo Bend which I have heretofore 

mentioned. These fights can be messy. There’s sometimes too many 

stories about hydropower relicensing across the country, cannot be, 

you know, compromised between all of these interests. I hope that 
5 

this will help us to keep working in the cooperative way that we 

are. 

The relicensing process takes too long and it’s too costly. Toledo 

Bend is currently waiting for a new license. I’m been pushing 

FERC, as I said, to get this done. 

On February 5th of this year I wrote a letter to FERC calling on 

them to issue Toledo Bend a new 50-year license, the longest term 

possible under Federal law. The law does not have to be changed 

for this 50-year license to be issued. 

It is within their jurisdiction. We’ve laid out several important 

arguments why we think a 50-year license will save local communities money. It will help generate some additional revenues that 

can be used for the benefit of all concerned. 

I expect that FERC will issue a 50-year license for Toledo Bend 

this summer as I and others have requested. Frankly if they’re not 

leaning forward, I’m going to be using my power as the Chair to 

pass legislation. It would be much easier for them to do this administratively. I most certainly appreciate their consideration of all the 

arguments that we’ve laid out. 

So before I turn this over to our panel of witnesses I want to express my strong support and recognize this reservoir as the extraordinary economic engine it has been and can continue to be for 

this region. We need to relicense this project for 50 years. We need 

more resources for infrastructure to make Toledo Bend as accessible as possible for the public, to the private landowners, for new 

investments and for mostly, creating wonderful jobs, high paying 

jobs, for every single person to have access to those jobs in our community. 

So I thank you all very much. I want to recognize our panel. 

We’re going to have a great panel this morning. I’ve asked each of 

them to give 4 or 5 minutes of testimony then we’ll have a round 

of questioning. 

I’d first like to welcome Senator Gerald Long, who has been a 

long standing friend and wonderful ally. He’s represented Louisiana’s District 31 which includes Natchitoches, Winn, Grant and 

Sabine Parishes since 2007. He currently serves as Chair of Louisiana’s Senate Natural Resources Committee and is a strong and recognized voice in all issues related to what we’re discussing today. 

Senator Long, thank you for being here. 

I’m going to introduce everyone and then we’ll come back. 

Next we have Mr. Jim Pratt, the Executive Director of the 

Sabine River Authority of Louisiana. The Sabine Authority has 

joint authority, as I’ve said, over Toledo Bend along with its counterpart in Texas. 

Jim, I think we have 13 commissioners and Texas has nine. We 

look forward to hearing the good work that you’re doing and how 

our counterparts in Texas are thinking about some of these things 

as well. 

Next I’d like to welcome Linda, who hosted me the last time I 

was here. Mrs. Curtis-Sparks, thank you very, very much for your 

leadership of the Sabine Parish Tourist Commission and for your 

passion and advocacy for this community. We look forward to hearing your perspectives on the existing economic and recreational 
6 

benefits that Toledo Bend has to offer and see what more we can 

do to be of assistance to you. 

We next have Mr. Kenneth Freeman, of course, the Mayor of the 

great town of Many. He’s been the Mayor since 1989. He serves on 

the Board of the Sabine River Authority. We thank you, Mayor, for 

being here and for your leadership for these many years. 

Finally our last witness, Mr. William Ruffin, President of the Police Jury. He’ll have some helpful suggestions as to how this can 

benefit the whole region. We thank Sabine Parish Police Jury for 

their strong support. Mr. Ruffin, President Ruffin, and for all 

you’ve done today. 

So let’s begin with Senator Long to just give us 4 or 5 minutes 

of opening testimony. Then I’ve got some questions and hopefully 

we can conclude in about an hour or an hour and a half. 

Thank you. 

STATEMENT OF GERALD LONG, LOUISIANA STATE SENATOR, 

DISTRICT 31 

Mr. LONG. Thank you, Senator Landrieu. 

First of all on behalf of all of us from Louisiana we want to publicly congratulate you for the Chairmanship that we think offers 

enormous opportunities for our people. So I’m going to ask the audience that are here today to extend a personal congratulations to 

Senator Landrieu. 

[Applause.] 

Mr. LONG. It’s interesting to note that her Chairmanship at the 

national level is exactly my Chairmanship at the State level. As a 

State Senator I’ve been privileged to have the responsibility of 

being the Chairman of the Senate Natural Resources. Now we 

spent most of our time this year dealing with Legacy lawsuits and 

with levy lawsuits. The real issue though, I think, as we look at 

today is how can we move Toledo Bend into a position of prominence as we look at the next 20, 30, 40 years. 

Let me parenthetically make a statement that I think is extremely important. It is this. Toledo Bend knows no political parties. We simply know that the needs of our community and the 

needs of our State transcend politics. 

I want to publicly say how appreciative I am that Senator 

Landrieu has brought government to the people and that this meeting is being held today at Cypress Bend. 

One of the things I hear, Senator, so much as an elected official 

is that I feel isolated from my government. I believe today we actually put hands and feet to what we do as legislators. 

Now several things and I know there’s many others who would 

like to speak and we’ll be as brief as we can. One of the things 

that’s extremely important is that we understand, collectively, is 

that Toledo Bend can be the economic engine for Northwest Louisiana. We have yet to touch the hem of the garment in regards to 

the potential of Toledo Bend. 

One of the things that we want to do as State officials as well 

as Federal officials is to facilitate opportunities to grow Toledo 

Bend. When you look at travel across the United States and you 

see other recreational facilities such as this, unfortunately, as we 

compare it to Louisiana we find ourselves behind the curve when 
7 

it comes to development and making this an economic engine. I do 

appreciate the fact that we’re able to attract great opportunities 

like the Bass Masters and others, but if you begin to think outside 

the box of what Toledo Bend can be it can be an economic engine. 

A point and case here is that when we look at the diversion canals that are south of us that go into Lake Charles and Calcasieu 

and Cameron Parishes, we already provide for about 21 industries. 

Their needs as it pertains to a quality, quantity of water. One of 

the things that attracts people to Louisiana, Senator Landrieu, 

when we think of our economic engine is the fact that there is an 

availability of water which is affordable and which is portable 

meaning it can get from point A to point B. 

What we would ask you to do, as our United States Senator, is 

to continue to operate from the perspective of being pro business. 

Give our people an opportunity to grow Louisiana by using its natural resources. 

Now, ladies and gentlemen, I’ve made this statement before. Let 

me make it again. We are one of only 6 states that is water independent. The next great economic engine that drives Louisiana will 

be associated directly with how much water we have and how we 

use it. 

I offered 2 years ago a measure which will create a comprehensive water management plan for Louisiana. Currently at the State 

government level we have 21 agencies or sub agencies that have 

some type of regulatory control over our water. What we want to 

do is not only to use this great assets of Toledo Bend, we want to 

use the State of Louisiana with our water resources to grow our 

State. 

When you look at St. James parishes and some of the others that 

are attracting the large industries, the No. 1 reason they give when 

they come before my committee is the availability of water. Water 

is driving the economy in Louisiana and nationwide. If you doubt 

that, the State of Texas would love to be in the position we’re in 

when it comes to our water. 

Many of the things that hinder other states is the lack of water. 

Senator, we have that availability. We believe Toledo Bend is in a 

prime position to drive our State. 

Again, thank you for your attention. 

The CHAIR. Thank you so very much, Senator. I really appreciate 

it. 

Mr. Pratt. 

STATEMENT OF JIM PRATT, EXECUTIVE DIRECTOR, SABINE 

RIVER AUTHORITY, STATE OF LOUISIANA 

Mr. PRATT. Thank you, Madame. 

I am Jim Pratt. I’m the Executive Director of the Sabine River 

Authority for the State of Louisiana. The Sabine River Authority, 

as been stated earlier, we have 13 members that are appointed and 

serve at the pleasure of the Governor. 

The Sabine River Basin in Louisiana stretches from Logansport 

in Desoto Parish through Sabine, through Vernon, Beauregard, 

Cameron and Calcasieu, all of which have representatives on the 

Sabine River Authority Board of Commissioners. 
8 

One of our most significantly visible and responsible projects, of 

course yet is equally been a project. Of course we mention operated 

with the co-licensing of the Federal Energy Regulatory Commission, the Sabine River Authority, State of Texas. 

Earlier stated about the immense short line and the fact that 

this is the largest water body in the Southern states, it’s the fifth 

largest in the United States and unique is is it is not owned or operated by the Federal Government although we do fall under the 

Federal Energy Regulatory Commission’s jurisdiction because we 

do have a dam hydro facility on a river that was formally a navigable waterway of the United States. So our relationship with the 

Federal Government, one that fortunately has been, obviously, and 

will continue in the future. 

Primarily it was designed here in West Louisiana and Eastern 

Texas as a water supply. But of course, during the 1950s and early 

1960s when this project was conceived, the immense need for water 

supply was not apparent at the time. So the local leadership looked 

at ways of doing this. It’s not a Corps of Engineer project because 

it did not lend the flood control for their purposes. 

But the local business leaders and elected officials got together, 

joined in with the power companies that were around at the time, 

and designed this project for two purposes to pay for it. That was, 

of course, hydro electric power would initially pay for it knowing 

that the water supply component would eventually be tapped into. 

But then the local support of this project was from the promise of 

economic development for these poor parishes that were along the 

Western corridor of Louisiana. 

It has. Obviously there’s much more potential that can be 

reached. 

The generating facility at the dam, it produces those 80 

megawatts or so per hour. It will fund approximately or at least 

power about 16,000 residents. But of course, on one scale that’s not 

much. 

But when you look at the fact this is a renewable resource. It is 

green power. We believe that certainly has a placemat in our future energy needs. Certainly in all of our efforts for renewable resources this one stands alone. It does very well there. 

The economic impact that we receive from this project, of course, 

you see it today. We’ve got one of our largest, non-professional 

tournaments that we’re hosting this weekend. It’s the Big Bass 

Splash. Over 2,000 participants. 

The beauty of this one is couple weeks ago we had the Bass Masters elite. Those are professionals, great crowds and a lot of media 

attention. But this one today you have mother/daughter, father/ 

daughter, grandchildren fishing. It is a family event with big rewards. 

That’s why it’s so exciting for us to see this come here because 

of all things this is a great place to bring your family. We have capitalized on that. That’s part of the future on this. 

This resort that you’re at today was a project conceived by the 

Sabine River Authority as an economic development project in the 

early 1990s. The speaker behind me was the Executive Director at 

the time and led the charge to make this happen. This has changed 
9 

the landscape. It bumped the level somewhat. But we all know that 

that was going to be a catalyst to bring even more. 

We have two State parks here that are operated by our Office of 

State Parks in addition to the several recreationsites that are operated by the Sabine River Authority. We believe then though in the 

coming years, as was emphasized by the Senator, that water shortages will continue to be apparent. Climate change, one way or the 

other, is going to impact us and just natural outdoor environments 

are being confronted with industrial and residential development. 

So this project becomes more and more valuable to the States of 

Louisiana and Texas for the outdoor experience, but also of that 

genuine asset of high quality, clean, fresh water. 

As we referred earlier to the Federal Energy Regulatory Commission and the initial license that was issued in 1963. We’ve operated 

under that for the first 50 years very independent. Of course there 

were several environmental laws and regs that have been adopted 

since 1963. So one of the challenges that we had in going through 

this relicensing process, was showing that we are complying with 

all of those acts and regulations that have been passed. 

I’m happy to report that during this process, jointly with the State of Texas, we spent about $11 million. You may ask, well 

what can you show for that? 

We had to do a lot of those studies for, particularly, the river 

downstream of the dam to make sure it wasn’t impaired and the 

species that were expected to be there were still in place. The good 

news is, excuse me, they are. We have a very healthy environment. 

We actually have some of the highest quality of water of any river 

flowing into the Gulf of Mexico. 

The process of relicensing though has been an 8-year process 

with us. We developed a scoping document and a pre-application 

document that was submitted. We actually chose the integrated licensing process which was supposed to be much more expedited 

even than the traditional. But we must say, it has still been quite 

a challenge for us, to say the least. 

There was a lot of settlements. We have several Federal entities 

and State entities that are regulatory in nature that participated 

such as locally we had the Louisiana Wildlife and Fisheries, Louisiana Department of Economic Quality, in Texas, Texas Parks and 

Wildlife, Texas Commission on Environmental Quality and then 

the Federal agencies from the U.S. Fish and Wildlife Service, National Marine Fishery Service and our neighbor next door, of 

course, is the United States Forest Service under the Department 

of Agriculture. During that we addressed the concerns they brought 

forward which dealt with things from public recreation and water 

supply to the value of that hydro power production that we do here 

on Toledo Bend. 

It came at quite a cost. This process to both authorities, again, 

we are not taxing authorities. We generate our revenues here 

through the sale of hydropower, water and fees that we charge on 

our sites. But jointly we will have spent, at the end of the day, 

about $11 million during this process. 

The capital costs that are going to be associated with complying 

with the new terms are going to cost about $3.6 million. Our operation maintenance costs on an annual basis that, you know, in-
10 

cludes the mitigation and protection measures that were requested 

by the Federal agencies and that’s another 3.7. 

Many years ago and really it wasn’t many, but within the last 

decade, as residents moved to Toledo Bend and became full time 

residents. Their voices began to be heard. It came very apparent 

that maximizing the power production during the summer months 

which is when the power is most needed, was in conflict with our 

recreation element here. 

As such we made the Louisiana legislature instructed through a 

statute to reduce the amount of water we had available through 

elevation for power production in those months. But it did reduce 

our ability for revenue streams. But that being said, when you balance that with the recreational and the other economic development components then it’s just the best use of the asset that we’re 

looking at. 

The cost for our total project of relicensing, when we look at that, 

we cash-flowed it. There’s not been any tax dollars put into this 

from Texas or Louisiana. But we have to look at it from a business 

perspective and try to amortize that cost over a period. It really 

only works reasonably well if we can amortize that over the next 

50 years. 

Anything shorter, even our own residents say, you know, why did 

you do that? It just doesn’t pay for itself. So it’s very important, 

Senator, that we get that 50-year license so that we can amortize 

that cost over the 50 years. 

Hopefully the reality is that once the next license term comes 

around we will have operated this reservoir project for almost a 

century. We would at least encourage people to think, you know, 

what else could there possibly be? Do we really need to go through 

at today’s level an $11 million study again in 50 years and maybe 

we can mitigate that through this process. 

The CHAIR. Try to wrap up, if you can. 

Mr. PRATT. Will do. 

Last there’s two things. 

There’s a land exchange legislation that you have sponsored in 

DC that is very apparent that the U.S. Forest Service lands were 

not acquired as originally intended with the project in 1963. That 

empowers the U.S. Forest Service to mandate conditions on the 

project that are not necessarily conducive with local economic development efforts. So we appreciate your sponsorship on that, 

Chairman. 

We’ve already covered the no additional. 

Thank you, Madame, for hosting this here. We will stand by to 

answer any other questions you may have about this project. 

Thank you. 

[The prepared statement of Mr. Pratt follows:] 

PREPARED STATEMENT OF JIM PRATT, EXECUTIVE DIRECTOR, SABINE RIVER

AUTHORITY, STATE OF LOUISIANA

INTRODUCTION

This written statement is submitted on behalf of Jim Pratt, Executive Director of 

the Sabine River Authority, State of Louisiana (SRA-Louisiana). SRA-Louisiana, established by the Louisiana State Legislature in 1950, is an instrumentality of the 

State that provides an essential public function on behalf of the citizens of Lou-
11 

isiana, which it serves. Its primary statutory mission is to conserve, store, control, 

utilize, and distribute the waters of the rivers and streams in the Sabine River watershed for multiple public benefits, including domestic use, agricultural production, 

manufacturing and other industrial and commercial purposes, hydroelectric power 

production, navigation, recreation and tourism. SRA-Louisiana’s operations extend 

to the parishes of De Soto, Sabine, Vernon, Beauregard, Calcasieu, and Cameron, 

which lie within the watershed of the Sabine River and its tributaries. 

The governing authority of SRA-Louisiana is a thirteen-member board of commissioners, each of which is appointed by, and serves at the pleasure of, the governor. 

SRA-Louisiana is a self-sustaining entity that has no taxing authority and does not 

receive appropriated funds from the State of Louisiana. Today, SRA-Louisiana has 

64 employees and an annual operating budget of $9.8 million. 

OVERVIEW OF TOLEDO BEND PROJECT

SRA-Louisiana’s most significant responsibility is the Toledo Bend Project 

(Project), located on the main stem of the Sabine River in the parishes of De Soto, 

Sabine, and Vernon in Louisiana, and the counties of Panola, Shelby, Sabine and 

Newton in Texas. In terms of both surface area (approximately 180,000 acres) and 

storage capacity (approximately 4.5 million acre feet), Toledo Bend Reservoir is one 

of the largest water bodies in the United States, and is the largest reservoir in the 

nation that is not owned and operated by the federal government. SRA-Louisiana 

manages the Project with its co-licensee, the Sabine River Authority of Texas (SRATexas). The Project is the only hydropower facility in the United States that is colicensed by the Federal Energy Regulatory Commission (FERC) to two states 

through governmental units of those states. 

The Project was conceived, licensed, and developed primarily as a water supply 

facility, but also provides hydroelectric power production, economic development, 

and public recreation. The Sabine River Compact (Compact), signed by representatives from Louisiana, Texas, and the United States in 1953 and approved by Congress, apportions the waters of the Sabine River Basin below the northern state line 

of Louisiana equally between the two states. Prior to its construction, the Federal 

Power Commission (FPC), predecessor agency to the FERC, granted a 50-year license to the Authorities in 1963. The Authorities completed construction and commenced operations of the Project in 1969. 

Today, the Project has the capacity to produce approximately 240,000 megawatt 

hours of clean, renewable energy annually-enough to power about 16,000 homes in 

Louisiana. Toledo Bend Reservoir also provides water supply for local municipalities 

and industries, as well as supports jobs and businesses throughout the lower Sabine 

River Basin through the provision of a dependable water supply. In fact, Toledo 

Bend is the largest unallocated supply of fresh water in Texas, and the reservoir 

is considered crucial to meeting future water demands in the region, which are expected to increase in Texas alone by 92 percent over the decades between 2010 and 

2060. Finally, Toledo Bend supports a world-class bass fishery, which supports economic development in the region through the numerous recreational opportunities 

provided by the Project. 

PROJECT AREA

The Toledo Bend shoreline is approximately 1,200 miles in length-longer than the 

entire west coast of the continental United States. In Louisiana, the shoreline offers 

numerous public recreation facilities, commercially owned marinas and other businesses, private docks and boat houses on lands leased to adjacent landowners, and 

undeveloped lands. While a similar land use pattern also occurs in Texas, the shoreline area in Texas also includes approximately 4,000 acres of federal lands administered by the United States Forest Service as part of the Sabine National Forest, as 

well as the Indian Mounds Wilderness Area (IMWA). IMWA was congressionally 

designated in 1984-more than 20 years after the original Project licensing and 15 

years after Project construction. No Project structures, facilities or works occupy 

lands within IMWA. 

PROJECT PURPOSES AND BENEFITS

In addition to serving as a key source of water supply to meet the municipal, industrial, and irrigation water needs for both Louisiana and Texas, and providing 

low-cost, emissions-free renewable energy to ratepayers in Western Louisiana and 

Eastern Texas, the Project is a significant economic engine in the region, supporting 

jobs, tourism, and local businesses. Among the economic benefits made possible by 

the Project in Louisiana are the Cypress Bend Conference Center, two state parks, 

many private businesses dependent on recreation at Toledo Bend, and the large new 
12 

Sasol plant planned for Southwest Louisiana. We believe that in the coming years, 

as water shortages increase in parts of the United States and natural outdoor environments continue to confront development pressures, the Toledo Bend Project will 

become an increasingly valuable asset of the States of Louisiana and Texas. 

RELICENSING PROCESS

The Project operates under the license issued by the FPC in 1963, which expired 

at the end of September, 2013. The Authorities’ application for a new license was 

filed in September 2011 and currently is pending at the FERC. 

The Authorities developed the license application through an 8-year process that 

included the development and filing of a notice of intent to apply for a new license 

and pre-application document, extensive environmental scoping and studies, and 5 

years collaborating with all relevant federal and state agencies and the interested 

public both before and after the application for a new license was filed with the 

FERC. 

The relicensing process also involved a successful comprehensive settlement with 

federal and state resource agencies, reached after more than a year of intense settlement negotiations. The settlement sets forth mutually agreeable terms and conditions for the operation of the Project over the new license term, and includes measures that protect and enhance fish and aquatic resources, public recreation, water 

quality, and preserves the value of hydropower production and water supply. 

In addition, as part of the relicensing effort the Authorities have proposed to construct a new renewable generating facility in Louisiana to take advantage of water 

releases from the Project spillway, which is expected to produce approximately 

11,600 megawatt hours of renewable energy-enough to power about 800 homes in 

Louisiana each year. 

This onerous relicensing process has come at considerable cost to the two Authorities, as follows: 

• The relicensing process costs (e.g., environmental and engineering consultant 

fees, environmental studies, legal expenses, document preparation, and other 

related expenses) have totaled over $10 million since inception, and the Authorities expect a total expenditure of over $11 million by the time the license 

is issued later this year. 

• Capital costs associated with implementing new license measures are estimated 

at $3.6 million (not including the capital costs of the new small generating facility at the spillway). 

• Annual costs associated with operation and maintenance of new protection, 

mitigation, and enhancement measures set forth in FERC’s staff preferred alternative (which includes measures in the relicensing settlement agreement) are 

estimated at $3.7 million. 

• In addition, the Authorities estimate that they lose $ 2.6 million in revenue 

each year as a result of enhancing recreation at Toledo Bend Reservoir by restricting normal hydropower production to periods when Toledo Bend Reservoir 

is above 168 feet mean sea level (msl) (even though the Project was designed 

to draw reservoir levels down to elevation 162 feet msl for power generation). 

Together, these costs will increase the Project’s total operating costs by more than 

$7 million each year over a 50-year license term. For a Project with current operating costs of approximately $16.5 million annually, these relicensing costs substantially increase the Project’s total operating costs by nearly 44% annually, even if the 

FERC issues the statutory maximum new license term of 50 years. Of course, this 

increase would be even more substantial if the FERC issues a new license for less 

than 50 years. 

LAND EXCHANGE LEGISLATION

The Authorities very much need the enactment of S.1484, the Sabine National 

Forest Land Exchange Act of 2013, of which Chairman Landrieu is the lead sponsor. 

Senators David Vitter (R-LA) and John Cornyn (R-TX) are also original sponsors of 

this legislation. This legislation would remove some aspects of federal oversight 

under the FPA that potentially could cripple the many benefits provided by the 

Project on a going-forward basis. Currently, the presence in the Project of approximately 4,000 acres of federal land administered by the U.S. Forest Service imposes 

a considerable regulatory and cost burden on the Authorities, both now and into the 

future. The legislation sponsored by Chairman Landrieu, Senator Vitter and Senator Cornyn would remove these challenges and ensure that the Project can continue to be a valuable asset of the people of Louisiana and Texas. 
13 

The existence of Sabine National Forest lands within the Project gives ‘‘mandatory conditioning authority’’ to the U.S. Forest Service under section 4(e) of the FPA. 

This broad authority allows the U.S. Forest Service to impose upon the Authorities’ 

FERC-issued license any conditions it believes would adequately protect and utilize 

Sabine National Forest. Because the U.S. Supreme Court has held that FERC has 

no authority to modify or reject these conditions, there is no guarantee that a future 

FERC-issued license will be balanced in the public interest for both developmental 

and non-developmental values, as required by the FPA. Given the unique structure 

of FPA section 4(e)-where one agency can override the action agency’s overall licensing authority-there is little opportunity in the relicensing process for the Authorities 

and other hydropower licensees to challenge the factual merits of the conditions. 

Fortunately, the Authorities were able to work closely with the U.S. Forest Service in the current relicensing process and resolve all their issues through a negotiated settlement of the FPA section 4(e) conditions that will apply to the new license. SRA-Louisiana fully supports these negotiated settlement terms and is willing to implement them as a co-licensee of the Project. In a future licensing proceeding involving the Project, however, the Authorities should not be subjected to 

the risk that the U.S. Forest Service could impose onerous or crippling conditions 

to protect its narrow interests at the expense of the broader purposes of the Project. 

While all lands involved in this matter are on the Texas side of the Project, Louisiana is liable for one-half of all the costs of the Project. Thus, we share the interest 

of SRA-Texas in removing all federal land from the Project. 

In addition, removal of Sabine National Forest lands from the Project, together 

with the assurance that other non-fee federal interests in Project lands would not 

trigger land use fees under FPA section 10(e), would remove the threat to the Authorities to pay extraordinary federal land use fees to FERC. According to an estimate by the Authorities, these FERC fees could be as high as $3 million annually, 

which would wreck the economics of the Project. The FERC is not collecting these 

fees from the Project for two reasons: (1) the FERC has found that Project power 

is provided to consumers without profit; and (2) the FERC has determined that it 

will not collect these fees at all from anyone right now, but has not rejected its authority to collect these fees. The potential liability of the Project for these fees is 

exacerbated because a prior land exchange in the 1980s retained the federal government’s ‘‘power site reservation’’ on over 30,000 acres of lands inundated by Toledo 

Bend Reservoir. This ‘‘power site reservation’’ is the alleged basis of this fee by the 

FERC. The Authorities are pleased about the refusal of the current FERC to collect 

these fees, but also are keenly aware that a future FERC could change this position 

and determine to collect these excessive and unjustified fees in the future. Because 

any further change in FERC policy could be devastating to the Project, SRA-Louisiana supports a legislative solution that removes FERC’s power to collect fees for 

any interest in federal land at the Project. 

NO ADDITIONAL RELICENSING PROCESSES

Finally, SRA-Louisiana questions why this Project should undergo another relicensing in 30 to 50 years. At that point, the Project will have been operating for 

80 to 100 years, which provides ample time to fully understand and address environmental effects of its operations. The comprehensive, complex, costly and time 

consuming ‘‘audit’’ of the Project-which is what the re-licensing process is all aboutagainst the full spectrum of environmental laws of the nation will be completely unnecessary. The Project has now been through an original licensing and, very recently, a relicensing. SRA-Louisiana has no objection to remaining under the jurisdiction of the FERC according to the terms of our settled license conditions, which 

will contain sufficient authority to reopen the license, where justified, to address 

any implementation issues that might arise at the Project. 

We view this entire costly application process for a new license in 30 or 50 years 

to be an imposition of government expense of questionable value. This Project is an 

asset owned by the people of Louisiana and Texas, and it is the only FERC-licensed 

Project in the nation that is owned by two different states. This Project is not operated for profit, but for the benefit of the people of Louisiana and Texas. Therefore, 

we ask Chairman Landrieu to do all in your power to relieve this Project of incurring another major expense-which may be much greater in 30 or 50 years than our 

current relicensing-occasioned by the requirement to seek a new license periodically. 

CONCLUSION

Thank you, Madam Chairman, for your great interest in the success of the Toledo 

Bend Project and for this hearing that you are conducting here today on the Project. 

We appreciate your support and your leadership in Congress to address issues that 
14 

will enable this important state asset to achieve its full potential as an electricity 

producer, a water supply facility and an engine of economic development for Western Louisiana. 

We welcome your questions about the Project, Madam Chairman. 

The CHAIR. Thank you very much, Mr. Pratt. 

Ms. Curtis-Sparks. 

STATEMENT OF LINDA CURTIS-SPARKS, DIRECTOR, SABINE 

PARISH TOURISM COMMISSION 

Ms. CURTIS-SPARKS. I want to add my appreciation to Senator 

Long’s remarks in you bringing this Commission to us today because the story and I’m going to tell more of a story today. 

I’m going to speak to you as a resident because if you had 250 

people in this room there would probably be 5 of us that lived here 

prior to Toledo Bend being built. So we can tell you the wishes or 

what the people then thought it would be. I will speak to you with 

a little bit of knowledge from my time as Director of the Sabine 

River Authority. I will tell you today of what’s happening with 

tourism and retirement development as the Director of the Sabine 

Parish Tourist Commission. 

Sixty-six years ago this past Monday, a group of businessmen 

from about 16 miles as the crow flies Edgefield, that area, to about 

16 miles into Many were very concerned about who was going to 

take our—the most water out of Toledo Bend and how they were 

going to be sure that both states got their equal share. At that time 

this was a very poor rural agricultural area as was Desoto to the 

North and Vernon to the South. So these people were really concerned. 

Out of that grew the legislation that established the Texas and 

Louisiana River Authorities. For the next 20 years they went 

through conceptual studies and gaining the financing took about 7 

years and the construction—— 

The CHAIR. Linda, I just have to say you were 5 years old. 

Ms. CURTIS-SPARKS. Almost. 

[Laughter.] 

The CHAIR. But go ahead. It’s a great story. 

Ms. CURTIS-SPARKS. OK. 

I was at the ground breaking. I was at the dedication. I know 

what the people thought it was going to be. 

At that time we envisioned lots of factories coming because we 

were going to have all the water it took to attract those. You can 

go back and you can look at the Shreveport Times and the Longview papers. They had big pictures of big factories. 

It never happened. I’ll state up front because I have been involved in the area so long, its people often ask why has it never 

happened? 

Senator Long mentioned, you know, you can go still to places in 

Louisiana that don’t know about Toledo Bend. I hear all the time 

people in Louisiana that have never heard about Cypress Bend. I 

work that market. 

I don’t know in my lifetime if we’ll ever get that word out. 

But the two things that, in my opinion, have really held this 

project back is when we finally got it built. It was truly a miracle 
15 

that it was built. It was built, as you know, by the people of Texas 

and Louisiana without any Federal assistance. 

There was no infrastructure built. The roads and the water to 

create those industries coming in was not put here. So those people 

that came to Toledo Bend in those first years, I personally traveled 

26 miles on a dirt road to fish at Toledo Bend. So it just wasn’t 

here. 

So those first 20 years of Toledo Bend it didn’t happen because 

there was just no infrastructure. We had a lot of local people that 

put in a lot of local marinas. By the end of that first 20-year period, 

by the first of say, 1990, we had 2,600 homes and camps, most of 

them were camps that were kind of shotgun camps. We had very, 

very few really nice homes in Toledo Bend at that time. 

We had 204 hotel rooms on this lake that you could rent to the 

public to come to Toledo Bend. So we couldn’t market Toledo Bend 

on a national level in 1990 because we didn’t have any place for 

them to stay. We didn’t have North and South Toledo Bend and 

some of the things we have then. 

So the River Authority did adopt, in my opinion, an aggressive 

economic development program. 

They built 33 hard surface roads. 

They built Cypress Bend. 

They cleared and marked broke roads. 

They started restocking the lake. 

Within a 5-year period we saw a significant economic change. 

We, at that time, went from 2,600 homes to 5,600 homes in 5 

years. Now those numbers and I want to explain this in case you 

go out and check with our Assessor’s Office, because we now have 

just about 6,000 on the row. But most of those homes and camps 

that were here in 1969, those mobile homes, have ceased to be. 

Those camps have been replaced with $300,000 to $1.5 million 

homes. 

So we still have about, at this time, 6,000 homes or structures 

along the 80 percent shoreline, about 480 miles of shoreline in 

Sabine Parish. 

Now the, because of Cypress Bend, and Cypress Bend was part 

of that economic program. It was built to give the banks a property 

comparable. It was built to give the banks an occupancy comparable because at that time about 30 of our old marinas had been 

owner financed and sold for too much money that you couldn’t 

drive to pay off a $300,000 note with 5 cabins and a boat ramp. 

So those owners have taken them back and taken them back and 

taken them back over the years. 

Since Cypress Bend was built we now have 750 rentable rooms. 

We now have about 800 RV pads. So we’re getting close to 1,600 

rentable units on Toledo Bend. About 17 times out of the year 

those rooms are all full. So we max out at many times of the year. 

Coming forward the next 15 years we continue to experience the 

same problems we had in 1969, are the same problems in 2009, is 

that the infrastructure on Toledo Bend still holds back the development of Toledo Bend and people that come in from Houston which 

is one of our main areas to draw from, South Louisiana to that 

area they don’t understand because they look at Lake Livingston 
16 

and Lake Conroe and it’s house to house and it’s businesses and 

multiple restaurants. 

But we can’t a Holiday Inn Express on this lake because we don’t 

have water for fire protection. We don’t have sewer. Of those 6,000 

homes, probably, maybe 5 percent are serviced by a sewer system, 

a community sewer system. The rest of them are on individual 

units. So when business gets ready to come into this area they 

have to put in sewer and water. You’re just not going to get it. 

The other thing, the second thing, in my opinion, that has held 

back the development of Toledo Bend is that we are a small, rural 

parish where you have 80 percent of the lake. Senator Long will 

tell you when you go to Baton Rouge and he represents 4 other 

parishes and our Representative represents 5, you don’t get State 

money to bring home. It’s very, very difficult. He can tell you those 

challenges because our Senators and Representatives have fought 

it for years. 

The only way that we got money to build Cypress Bend, we’ve 

brought all of them up here and we told them the story. They saw 

the economic value. So it is a struggle indeed. 

I turn it back to sewer and water. 

On the positive side you will see tomorrow that ESPN story that 

Jim talked about that was filmed here a couple of weeks ago. We 

had the top pros in the world at Toledo Bend. They come because 

it is a fabulous fishing resource. 

On the negative side that wonderful tournament that’s down at 

that arena today has 2,500 people. I asked Bob Seeley yesterday 

why can we not get 7,500 like Rayburn’s got or had 3 weeks ago? 

He said you can’t get them because I can’t bring out-of-State people 

in because you still don’t have the lodging. You don’t have the 

rooms for them, plus the quality of rooms. 

So I close with this remark. We really appreciate the efforts that 

you have made in helping the River Authority work through the 

issues with FERC. We hope that you will be successful in getting 

a 50-year license because the cost of the authorities when they 

have such a small amount of money to operate on to meet the recreational needs of the future, are going to be really difficult. 

We would ask that it never have to be licensed again. But for the 

FERC license or the requirement of the FERC license as we go forward to take 40 or 45 percent of these authority’s revenues to address the needs in there. We ask that you do all that you can in 

that area to help lower that cost. 

The CHAIR. Thank you for that impassioned testimony. You bring 

such depth of experience and the knowledge having been here 

from, in large part, from the beginning. I’m going to have several 

questions to ask you after we have our other panelists. 

But let me just say that you have a champion in me. I’ve said 

that to you privately and publicly to develop in the most appropriate way for the benefit of this region, as well as for the benefit 

of the whole State and Nation, but for this region, the people that 

live here to see the true benefits of this extraordinary asset. So I 

look forward to continuing to work with you. Thank you so very 

much. 

Mayor Freeman. 
17 

STATEMENT OF KENNETH A. FREEMAN, MAYOR, TOWN OF 

MANY, LOUISIANA 

Mr. FREEMAN. Senator, contrary to President Putin of Russia, we 

want to welcome you to Toledo Bend country. 

[Laughter.] 

The CHAIR. Thank you. 

Mr. FREEMAN. Let you know you are always welcome to join us. 

We look forward to and appreciate your being here. 

Ms. CURTIS-SPARKS. Thank you for enlightening me. 

Mr. FREEMAN. I too was here when the lake was built. I remember those discussions as to why it was important, what would happen, what our hopes and dreams would be, if this came to pass. As 

you’re well aware the lake was built to accomplish many, several 

goals for the people and the citizens of Northwest Louisiana and 

Northeast Texas. 

One was to generate electricity. 

One was to provide a reliable source of water for industry. 

To create recreation and tourism. 

Since its completion Toledo Bend project has not disappointed. 

Since its completion the lake has continually generated electricity to help feed the growing demand for energy in America. 

Since its completion water sources have been consistent and good 

water to the point where just recently whether you agreed with the 

concept or not. Dallas came to Toledo Bend to ask to buy water 

which to me underscores the fact that our children are going to be 

faced with some tremendous challenges to meet the essential resources to meet the demands of an ever growing human population. 

Tourism and recreation. 

Today Toledo Bend is recognized as the second most visited tourist attraction in the State of Louisiana. A pleasant surprise because 

of the tourism coming to Toledo Bend another industry has sprung 

up that’s important to our economy and that’s retirees. Today Toledo Bend is one of the fastest growing destination points for retirees in Louisiana. 

So those of us who were here from the beginning know that Toledo Bend is not just a sportsman’s paradise. 

We know it’s not just a big old hole in the ground with a lot of 

water in it. 

We know that it is the engine that drives our economy. 

However, this engine can’t roar to its fullest potential until we 

accomplish one more goal and that’s transportation. The people of 

Many have worked diligently for the last 25 years to expand our 

airport and are pleased to report that within 5 years jet planes will 

be able to land, for the first time, in Sabine Parish. 

I have served on the El Camino Real Commission for the last 23 

years. It’s a 5 State commission to 4 lane highway 6 from New 

Brunswick, Georgia to El Paso, Texas. I’m keenly interested in 

four-laning from Pendleton Bridge to 49, opening up Toledo Bend 

country, allowing that economic engine to produce more than we 

ever imagined. 

We here today are asking you to continue to support the Toledo 

Bend project and help us accomplish these goals so that this area 

can reach its fullest potential and in doing so build a stronger 

North Louisiana for generations to come. 
18 

The CHAIR. Thank you, Mr. Mayor, very well done. 

Mr. Ruffin. 

STATEMENT OF WILLIAM RUFFIN, PRESIDENT, SABINE 

PARISH POLICE JURY 

Mr. RUFFIN. Thank you, Senator. 

The CHAIR. President Ruffin. 

Mr. RUFFIN. As the other panelists have already done, stated beforehand, we’re very pleased to have you here with us in Sabine 

Parish. On behalf of the governing body of the Parish and the citizens of this entire Parish, we certainly salute you. We’d like to 

commend you for your new appointment and even though this is 

not a political committee, we don’t dare think of not keeping you 

in the position that’s so vitally important to the State and the citizens of Louisiana and this entire Parish. 

As for the Toledo Bend project I’d like to emphasize continue 

with the same things that others have mentioned, the importance 

in terms of recreation and economic value. It is quite obvious that 

the police jury and the citizens depend upon the economic value. 

That’s so vitally important to all of them, the taxes that’s drawed 

from the Lake, Toledo Bend Lake. 

But I would also like to emphasize the importance of recreation 

thanks to Toledo Bend Lake Association, the Authority, the Tourist 

Commission. The Toledo Bend Lake has attracted retirees, that the 

Mayor just pointed out. They don’t just come here to fish, recreation seasonal. We still have that. 

But since the lake opened, yes I remember that too, there have 

been a number, as Linda pointed out, a number of people that have 

come from all over the country and retired in this area. There’s 

very seldom mention the human resource that’s brought on by the 

lake. We benefited from people from all over this country that come 

here to retire. They bring their expertise. 

Yes, they do retire, but very few of them come here just to fish. 

Even if they do, they find themselves becoming very active 

throughout the community. 

We have one example. An individual from the Lake Association 

that served on the Authority was voted citizen of the year in 

Sabine Parish just a few years ago. Those people are very, very important to the development of this Parish and to the lake. We certainly hope you will continue to support the growth and development of the lake for all the reasons have been mentioned. 

I am very pleased to point out, thanks to Senator Long and Representative Frank Howard, the Police Jury appointed a long range 

water planning committee to study the feasibility of water. Water 

is so vitally important as you’ve heard any number of times. It is 

very important. We recognize that. 

But we have a committee. Next week we’re going to appoint an 

engineer. Thanks to Senator Long and Howard, we received a 

grant to do a long-range study for water in Sabine Parish. The Police Jury will appoint an engineer next week so that we can get 

started on that study, the feasibility study. We’re going to rush 

that right through so we can go on with the plan of developing 

water for the citizens in this entire Parish. 
19 

As has been pointed out any number of times before, the growth 

of Toledo Bend and Sabine Parish is hindered by the lack of water, 

the availability of water as so vividly have been pointed out in a 

number of cases before. But we’re working on that. We certainly 

hope that you would assist in the continued growth of that. 

We know we have the support of Senator Long and Senator Howard, our State led. But we also know that Northwest Louisiana, we 

are aware the location. It’s a little different from South of 10. 

It is difficult to receive those funds. But we have very strong legislators that are working diligently to help provide. We certainly 

appreciate all the support that you can give us in that endeavor. 

We feel like the future of Sabine Parish depends largely on the 

growth of Toledo Bend. 

All that you can do and we welcome you back numerous times. 

We want you to come back. I remember before when Linda had you 

here. We went down and I would invite all of those of you that are 

here and encourage others. We were able to travel by barge down 

the lake and to just look on the shores at the growth of Toledo 

Bend. It is fantastic. 

I’m very proud to say, Toledo Bend, Sabine Parish is my home. 

When we walk out at Cypress Bend and we went through that endeavor. I’ve been on the jury for a couple of years too when we had 

to struggle to get Cypress Bend even built. It was indeed a struggle. 

But it has been good for the Parish. We certainly appreciate your 

continued support in that. 

The CHAIR. Thank you all very much, really appreciate the testimony today. 

Let me just begin by getting a few questions on the record to you, 

Mr. Pratt. Then I have some additional questions for the panelists. The Sabine River Authority as you testified today has spent $11 million on, approximately $11 million, I think you said, on reauthorization. How much money, roughly, would the Authority save 

if you can or we can secure the 50-year license instead of the 30 

or 40 year? 

Have you roughed that savings out? 

Mr. PRATT. Apparently the initial cost of the $11 million is gone. 

The good news is is that the last time we went for a rate negotiation with the power companies we had an $8 million estimate. So 

we recovered that. 

But the reality—— 

The CHAIR. I’m not—can you make that clear to me? I’m sorry. 

You’ve already spent the $11 million to date with the reauthorization. 

Mr. PRATT. Yes. 

The CHAIR. But when you renegotiated your power you got an $8 

million plus over what you were expecting? 

Mr. PRATT. No. It was factored into our current rate. But that 

rate goes away here within the next year or two. We’ll have to start 

over. 

But once we’ve made that expenditure though and the real challenge that we’re going to have, Senator, is is that there are mandates and additional obligations under the terms of the new license 

that we agreed to that will cost us an extra amount per year. 
20 

The CHAIR. OK. Let’s talk about what one or two of those just 

might be. 

Mr. PRATT. Sure. 

The CHAIR. If you have it. Just as clear as you can be, one or 

two requirements that are going to increase your operating cost. 

Mr. PRATT. One of those that was very apparent is is that the 

amount of water that we were releasing through the power plant 

we’ve had to adjust that somewhat. It diminishes a little bit of our 

power production on an annual basis. 

The CHAIR. You’ve been required to reduce it or increase it? 

Mr. PRATT. Reduce it. 

The CHAIR. Reduce it. 

Mr. PRATT. Reduce it. 

The CHAIR. For what reason? 

Mr. PRATT. For what reasons? It was a balancing of the flows 

downstream. There wasn’t any real albatross or anything that was 

out there. But it was just concerns that the resource agencies had 

that we were releasing large slugs of water. Then when we quit 

generating then it was down to a very minimal amount. 

We agreed with them to work with them. Now we didn’t go—— 

The CHAIR. You agreed to make it a more steady flow? 

Mr. PRATT. Yes, Ma’am. Yes, Ma’am. 

The CHAIR. Instead of the surge? 

Mr. PRATT. Right. 

The CHAIR. That’s going to reduce a little bit of your income? 

Mr. PRATT. It will because some of that constant flow will actually be released through our spillway rather than the power plant 

itself. So there’s no power generated when we do that. 

Now as an alternative condition that we’ve asked for in the license is that we try to capture some of that release at the spillway 

in a mini hydro unit. We won’t know for sure until we get the license and then see if that will be economically feasible. 

It won’t produce a whole lot of power. But again, trying to capitalize on if we’re going to release water for environmental purposes, run it through a small turbine and that will offset. 

In addition what strikes me most is that the Federal lands that 

the U.S. Forest Service owns along the shoreline. We—— 

The CHAIR. On the Texas side? 

Mr. PRATT. Yes, Ma’am. That are on the Texas side, but of course 

we’re jointly responsible for the administration of those lands. We 

planned that we will be doing some historic surveys on those lands 

at their demand, basically, over the next several years. 

Now once your bill moves forward and we can exchange lands 

with the Forest Service and own them ourselves, then that will 

mitigate our future cost of having to do archeological surveys on 

public land. 

The CHAIR. OK. 

Senator Long, let me ask you this. 

Do you think or could you describe the level of understanding 

currently, not only yours, but not so much yours because you clearly understand it. But among the Governors that you’ve served with, 

among legislators that you’ve served with in both parties, do you 

think that there is an understanding about the value of this particular resource and how, if a few things could be done and strong-
21 

er partnerships it could really develop more along the lines of what 

Ms. Curtis-Sparks and Mayor Freeman and President Ruffin have 

outlined? 

Mr. LONG. Senator, that’s a great question. I think people understand the significance of a global concept or a national concept of 

water. We’re beginning to see that pretty clearly as we look at the 

fact that 36 states currently are in a drought condition or semidrought condition. 

What has not yet hit home in Louisiana is the significance of the 

role of Toledo Bend in mitigating some of these issues that are national in scope. Now look, I felt very strongly to protect the integrity of our water here. But we have to realize also that we have 

a diamond in the rough and that 90 percent of our water in Toledo 

Bend eventually ends up in the Gulf of Mexico. 

So we’ve got to be proactive in figuring out how we can manage 

this valuable resource. No one that I know would deliberately give 

away 90 percent of their assets. So we do not understand how this 

wonderful situation that we’ve inherited with the growth of our 

area in our State and Toledo Bend fit together. 

The CHAIR. That’s exactly my point. I’m so glad you raised it because initially when this was built the idea was that the hydropower and electricity would be the driving value. It is clear today 

after 50 years that the driving value is the water itself. So that the 

Authority has a very significant responsibility to manage that 

water for the highest and best use of the communities in which it 

serves. 

It’s a little bit unsettling and ironic that I hear the testimony 

that Toledo Bend is sending all the water necessary for international plants to operate, but the community that lives here can’t 

get clean drinking water or water enough for its development of its 

subdivisions and schools and you know, commercial developments. 

It’s a little bit unsettling here. 

Mr. LONG. Senator, if I—— 

The CHAIR. So help me understand what you think or what the 

Authority thinks is its responsibility to the local communities, particularly the 3 parishes of Sabine, Desoto and Vernon and then 

you’ve also got Beauregard, Calcasieu and Cameron, but Sabine, 

Desoto and Vernon. 

Mr. LONG. Let me address that briefly. Others here certainly 

have greater knowledge than I do on this. 

The grant that Mr. Ruffin spoke about is a $13 million capital 

outlay which I was able to put into and work with the Administration. Now the caveat on that, under some of the rules we’ve passed 

at Baton Rouge which aren’t necessarily, in my opinion, favorable 

for small parishes, require a 25 percent match. In other words if 

I get $13 million, $3.2 million of that has to be paid locally. 

I want to say this again without politicalizing anything. We 

worked with the Administration very closely. We were able to get 

that $3.25 million waived. 

The CHAIR. That is terrific. 

Mr. LONG. As a results of that—— 

The CHAIR. That is a great effort. 

Mr. LONG. Yes. 
22 

The CHAIR. Congratulations because I have something to say 

about these matches. But thank you for doing that. 

Mr. LONG. But to answer your question is that without a doubt 

the 3 parishes that surround the lake itself are the ones most influenced. We believe that once this project, this $13 billion project is 

implemented it could well address, perhaps as much as 80, 85 percent, of these ongoing issues that have been, obviously, a problem 

in expanding them. 

The CHAIR. A barrier for expanded economic development. 

Mr. LONG. Yes, exactly. 

The CHAIR. Whether it’s retirement communities, whether it’s 

additional, you know, lodging and hospitality, whether it’s small, 

commercial enterprises and restaurants and you know, hardware 

stores and you know, auto mechanic supplies, shoe repair. I mean, 

you could just think of when you bring in people that come in either to live permanently throughout the year, particularly for seasonal. You know, they come in, spend a lot of money. 

Don’t really rely a lot on the resources. I mean, sometimes families come in just for vacationing. You don’t have to give them too 

much hospital care. You don’t have to give them schools. You don’t 

give them too much policing. 

But they spend a lot of money while they’re here. So they’re kind 

of the best kind of dollar you can generate for your community. All 

they really want to do is spend their money in your community. 

Then they leave to other places. That’s $1.00. 

The other dollars are attracting long term, you know, annual 

residents that can come in, that do have access to good schools, 

hospitals, you know, key shopping opportunities so families can 

think that they can. 

I have to say one of the other reasons that drives me to this table 

now is because of the great benefit this is to Fort Polk. You all 

know as one of the great characteristics or assets that we put on 

the table to the Pentagon when they’re looking around closing some 

of our joint training bases. We had said why would you close Fort 

Polk when we’ve invested over a billion dollars of infrastructure in 

housing? The State, because you all have, as well, worked with us 

to put in some additional infrastructure to Fort Polk and the soldiers and their families at Fort Polk have access to a world class 

recreational, you know, facility, Toledo Bend. 

That scores a high mark in the Pentagon when they’re looking 

at well, we should probably not look at closing Fort Polk core. So 

that is another economic driver for this whole region that is in 

some ways directly related to what happens here. So that military 

piece is really, really important. 

President Ruffin, let me ask you this. Have you all estimated for 

your parish what the sewer build out might be for supplying or 

wait, I’ll come back to you ask you, Linda, too, the, you know, just 

the basic water, sewer connections that would allow the kind of 

just regular development that goes on in subdivisions and communities throughout the State. 

Do you have a rough estimate of what your cost might be there? 

Mr. RUFFIN. It would be extremely difficult because we have not 

looked into that. But we do understand without the long range 

water planning that we spoke of. 
23 

The CHAIR. Right. You can’t do the development. 

Mr. RUFFIN. It is totally out. 

The CHAIR. So until you get the study done it’s hard to figure out 

what it’s going to be. 

Mr. RUFFIN. It’s going to be because we don’t have it and we’ve 

not had it before. This is new. 

The CHAIR. So this is going to be a great first step that Senator 

Long has managed to secure for you all. 

Mr. RUFFIN. It certainly is. 

I might point out that this study was hindered because when the 

jury was confronted with this it was totally out of the question if 

we had to do that now. 

The CHAIR. Let me say a word about the match because I say 

this all over the country and I’m going to say it right here. I think 

it is wrong headed policy for the Federal Government or for State 

government, Senator Long, to require the same match for urban 

and rural and the same match for densely populated areas and 

sparsely populated areas. 

If you think about it when we pass laws and we do this, unfortunately, all the time at the Federal level and at the State level, 

where we give out grants but you can only access the grants if you 

can come up with the match. If you think about what happens over 

time as all taxpayers send money to the State, rich and poor alike. 

All taxpayers send money rich and poor alike to the Federal Government. But the only counties that can pull the money back down 

are the richer parishes because they’re the only ones that can afford the match. 

It is an absolutely self defeating system that has to stop. 

Now I’m an appropriator. I’ve been an appropriator since I was 

23 years old. I have been trying to get this changed. To some degree, have by doing exactly what Senator Long did by occasionally 

getting enough power to waive the requirement. 

But that policy has to change. It should be stricken from our 

laws. There should be a graduated match with the poor parishes 

being able to put up like a 5 percent or a 10 percent. The middle 

income parishes put up 15 or 20. The wealthier parishes actually 

put up a 30 percent match. That would make everything much 

more fair whether you’re talking about highways or water or sewer, 

etcetera. 

So I’m going to continue, you know, to speak about this. I’m making very incremental progress. 

But thank you, Senator Long, because it’s just absolutely unfair 

to a community that’s a rural community and can’t, you know, pool 

together sometimes the resources it needs to claim the funding that 

is truly theirs. 

The other thing is I hope the local authorities with the assessors 

and these parishes will look at the increased revenues that are 

coming to the parishes based on the development here. Linda, as 

you said, people aren’t living in trailers, they’re living in million 

dollar homes. 

Those homes are being assessed. They’re paying property tax. 

Same exact thing is happening in Grand Isle. You know, the generation of wealth in Grand Isle and it all goes to Jefferson Parish, 

but I keep telling Jefferson Parish, you should share some of that 
24 

revenue back with Grand Isle because they’re a small, little place, 

but they’re generating, they’re a generator of income for Jefferson 

Parish. 

So it’s sort of the same thing up here that you’ve got these communities that are generating income to the parish. I hope the parish will be sensitive and help you continue to invest back in this 

community for it to grow for, you know, public access, boat 

launches, all the things, new lodging, etcetera. 

So do you want to add anything? We’re going to wrap up in just 

a few minutes. 

Ms. CURTIS-SPARKS. No, I think it is important though, because 

this is a regional project too, for your records is that several of 

them, Ken and Mr. Ruffin have mentioned the retirement development which I did not touch on a great deal. But about a third of 

the retail value of those that have settled here goes to Shreveport, 

Bossier and to Rapides and so that is one help that Senator Long 

can gather those people. But when he has, as I said, he’s one vote 

and you have 17 in Lake Charles and you have 55 in New Orleans, 

it’s hard for him to be able to bring that money up here. 

We just got a time in a lifetime here. We’re very appreciative to 

him. 

But the retirement value of that or the economics, I want you to 

understand, is just not for Sabine Parish. In fact, the State of Louisiana last year recognized what you mentioned. They put $200,000 

into internet marketing for Vernon because of Fort Polk, Toledo 

Bend, because of the retirement here in Shreveport Bossier. They 

just put another $125,000 into marketing for the month of May because it has generated so much interest in our areas. 

Incidentally, Toledo Bend beat Shreveport Bossier, you know, 

which is a real plus. But other people—— 

The CHAIR. Beat them in what way? Beat them in what way? 

Ms. CURTIS-SPARKS. Toledo Bend beat Shreveport Bossier as far 

as the Google analytics, the number of people that it drove to us, 

to our website verses Shreveport Bossier’s and Vernon’s. So there’s 

tremendous interest out there. 

But we’re continually telling the story. It’s not just the benefit 

of those retirees to Sabine. Those people go to Shreveport Bossier 

for medical help. They go they buy cars and boats and appliances, 

same thing to Rapides. 

So it is a regional benefit from that economic development that 

is being done here in Sabine Parish. 

Mr. FREEMAN. Senator, to underscore what Linda just said. In 

the last 30 years I’ve seen the sales tax revenues for the citizens 

of Many increase 97 percent. That’s significant in real dollars. 

So it is—— 

The CHAIR. Identifying where those drivers of that increase sales 

tax are coming from and increased property taxes and then having 

the local officials reinvest in the areas that are generating it will 

help the whole community grow. 

I’ll continue to work with you all on that informally. But I’ll continue to work with the Authority officially through the reauthorization of FERC to see what I can do to strengthen the Authority to 

help them save as much money as they can in their petitions and 

relicensing to the Federal Government so we can generate, maybe, 
25 

some additional resources that could be spent right here at home 

at the Louisiana side of the Sabine. Also help out our Texas friends 

on their side as well. 

Let’s go for one 30 second closing comments. 

Senator Long, just anything that you want to put on the record 

that hasn’t been put that you think should be? 

Mr. LONG. Again, as I have commented earlier water is going to 

be absolutely the driving force, not only in Louisiana but throughout the Nation. We have a diamond in the rough. If we can figure 

out how to manage it properly I think you’ll see an economic explosion that will benefit the entire State. 

The CHAIR. Thank you. 

Mr. Pratt. 

Mr. PRATT. Yes, Ma’am. 

Fifty-year minimum license, Federal land swap with the U.S. 

Forest Service and exemption from any FERC fees for occupying 

Federal lands. 

Thank you. 

The CHAIR. Thank you. 

Lin. 

Ms. CURTIS-SPARKS. I have to amen what Jim has said and mention just one quick thing that was not mentioned is that as far as 

your question on other things in the FERC license. 

I think that SRA has made every effort to try to not hinder economic development with residents and businesses. But the shoreline development policy we would ask that it not require a great 

amount of funds in the future in meeting requirements because 

that’s going to impact economic development. 

The CHAIR. Absolutely. 

Ms. CURTIS-SPARKS. If you would note that too. But thank you 

so much. 

The CHAIR. Thanks. 

Mayor. 

Mr. FREEMAN. I agree with the world population from and 100 

years going from 2 billion to 6 billion people on this earth to in the 

last 10 years growing another billion. Water is going to be essential 

and very valuable resource. 

But for us here today transportation, again. You’ve got to be able 

to get in here and get out. I think that’s going to be an integral 

role in developing it to its fullest potential, four-laning highway 6 

at least to I49. 

The CHAIR. Thank you. 

President Ruffin. 

Mr. RUFFIN. Yes. 

One of the most important things and that you mentioned about 

reinvesting into the communities that develop the tax base and all. 

It is vitally important that we recognize the fact that as governing 

body of this entire parish it’s pretty much like a family. Regardless 

to what one individual does that individual represents our parish, 

our family. 

So is true with Toledo Bend Lake as to Toledo Bend community 

grows so does Sabine Parish. The governing body has the responsibility of making sure that the entire parish grows along with Toledo Bend and to polarize one group from another. 
26 

It is a difficult task because we’ve received so many resources 

from the lake area. But we have areas that don’t receive just in the 

State of Louisiana and Northeast Louisiana. They don’t get near as 

much as they do in South Louisiana. But then we still have to take 

care of Northeast Louisiana too. 

The same is true with our parish government. We have to make 

sure that the entire parish is taken care of. 

The CHAIR. Thank you. 

Excellent note to end on. It’s been a terrific meeting. We’ve all 

learned a lot. Put a lot on the congressional record that I think will 

help this community and our State for many years to come. 

Meeting adjourned and thank you all so much. 

[Applause.] 

[Whereupon, at 11:44 a.m., the hearing was adjourned.] 

[The following statements were received for the record.] 

STATEMENT OF THE SABINE RIVER AUTHORITY OF TEXAS

This written statement is submitted on behalf of the Sabine River Authority of 

Texas (SRA-Texas). SRA-Texas, established by the Texas State Legislature in 1949, 

is an official agency of the State of Texas that provides an essential public function 

on behalf of the citizens of Texas, which it serves. We were created as a conservation and reclamation district with responsibilities to control, store, preserve and distribute the waters of the Sabine River and its tributary streams for multiple public 

purposes, including domestic use, agricultural production, manufacturing and other 

industrial and commercial purposes, hydroelectric power production, navigation, 

recreation and tourism. SRA-Texas’s operations extend to all or part of 21 counties 

(Orange, Newton, Jasper, Sabine, San Augustine, Shelby, Rusk, Panola, Harrison, 

Gregg, Smith, Upshur, Wood, Van Zandt, Kaufman, Rains, Rockwall, Collin, Hunt, 

Hopkins, and Franklin), which lie within the watershed of the Sabine River and its 

tributaries. 

We supply water to municipal, industrial and agricultural users throughout the 

Sabine River Basin. This is accomplished through the John W. Simmons Gulf Coast 

Canal System in Orange County, the Toledo Bend Reservoir, the Lake Tawakoni 

Reservoir, and Lake Fork Reservoir. Our customers include municipal and domestic 

clients with the largest being the Cities of Dallas, Longview and Greenville. We also 

have industrial clients, which include DuPont, International Paper and Texas Eastman. SRA-Texas is governed by a nine-member Board of Directors appointed by the 

Governor of Texas to serve six-year terms. Board members are vested with the management and control of the affairs of the SRA-Texas, which receives no appropriations from the State and is not empowered to levy or collect any kind of taxes. Operating funds are primarily derived from the sale of raw water, hydroelectric power, 

water quality services, and recreational and land use permit fees. Currently we 

have 104 full-time positions and operate within a budget of approximately $21.6 

million. 

OVERVIEW OF TOLEDO BEND PROJECT

One of SRA-Texas’s most significant responsibilities is the Toledo Bend Project 

(Project), located on the main stem of the Sabine River in the counties of Panola, 

Shelby, Sabine and Newton, and in the parishes of De Soto, Sabine, and Vernon in 

Louisiana. In terms of both surface area (approximately 185,000 acres) and storage 

capacity (approximately 4.5 million acre feet), Toledo Bend Reservoir is one of the 

largest water bodies in the United States, and is the largest reservoir in the nation 

that is not owned and operated by the federal government. SRA-Texas manages the 

Project with its co-licensee, the Sabine River Authority, State of Louisiana. The 

Project is the only hydropower facility in the United States that is co-licensed by 

the Federal Energy Regulatory Commission (FERC) to two states through governmental units of those states. 

The Project was conceived, licensed, and developed primarily as a water supply 

facility, but also provides hydroelectric power production, economic development, 

and public recreation. The Sabine River Compact (Compact), signed by representatives from Louisiana, Texas, and the United States in 1953 and approved by Congress, apportions the waters of the Sabine River Basin below the state line equally 
27 

between the two states. In 1959, the States of Texas and Louisiana arranged for 

the financing of $30 million in revenue bonds for the Project; the sale of electricity 

from the Project’s hydroelectric operations provided funds to pay for the revenue 

bonds. The Project is the nation’s only public water conservation and hydroelectric 

power project to be undertaken without federal participation in its permanent financing. Prior to its construction, the Federal Power Commission (FPC), predecessor 

agency to the FERC, granted a 50-year license to the Authorities in 1963. The Authorities completed construction and commenced operations of the Project in 1969. 

Today, the Project has the capacity to produce approximately 240,000 megawatt 

hours of clean, renewable energy annually—enough to power about 16,000 homes. 

Toledo Bend Reservoir also provides water supply for local municipalities and industries, as well as supports jobs and businesses throughout the lower Sabine River 

Basin through the provision of a dependable water supply. In fact, Toledo Bend is 

the largest unallocated supply of fresh water in Texas, and the reservoir is considered crucial to meeting future water demands in the region, which are expected to 

increase in Texas alone by 92 percent over the decades between 2010 and 2060. Finally, Toledo Bend supports a world-class bass fishery, which supports economic development in the region through the numerous recreational opportunities provided 

by the Project. 

PROJECT AREA

The Toledo Bend shoreline is approximately 1,200 miles in length—longer than 

the entire west coast of the continental United States. In Texas, the shoreline offers 

numerous public recreation facilities, commercially owned marinas and other businesses, private docks and boat houses on lands leased to adjacent landowners, and 

undeveloped lands. It also includes approximately 4,000 acres of federal lands administered by the United States Forest Service as part of the Sabine National Forest, as well as the Indian Mounds Wilderness Area (IMWA). IMWA was congressionally designated in 1984—more than 20 years after the original Project licensing 

and 15 years after Project construction. No Project structures, facilities or works occupy lands within IMWA. 

PROJECT PURPOSES AND BENEFITS

In addition to serving as a key source of water supply to meet the municipal, industrial, and irrigation water needs for both Texas and Louisiana, and providing 

low-cost, emissions-free renewable energy to ratepayers in Eastern Texas and Western Louisiana, the Project is a significant economic engine in the region, supporting 

jobs, tourism, and local businesses. Among the economic benefits made possible by 

the Project in Texas are numerous public recreation facilities and many private 

businesses dependent on recreation at Toledo Bend. We believe that in the coming 

years, as water shortages increase in parts of the United States and natural outdoor 

environments continue to confront development pressures, the Toledo Bend Project 

will become an increasingly valuable asset of the States of Texas and Louisiana. 

RELICENSING PROCESS

The Project operates under the license issued by the FPC in 1963, which expired 

at the end of September, 2013. The Authorities’ application for a new license was 

filed in September 2011 and currently is pending at the FERC. 

The Authorities developed the license application through an 8-year process that 

included the development and filing of a notice of intent to apply for a new license 

and pre-application document, extensive environmental scoping and studies, and 5 

years collaborating with all relevant federal and state agencies and the interested 

public both before and after the application for a new license was filed with the 

FERC. 

The relicensing process also involved a successful comprehensive settlement with 

federal and state resource agencies, reached after more than a year of intense settlement negotiations. The settlement sets forth mutually agreeable terms and conditions for the operation of the Project over the new license term, and includes measures that protect and enhance fish and aquatic resources, public recreation, water 

quality, and preserves the value of hydropower production and water supply. 

In addition, as part of the relicensing effort the Authorities have proposed to construct a new renewable generating facility in Louisiana to take advantage of water 

releases from the Project spillway, which is expected to produce approximately 

11,600 megawatt hours of renewable energy—enough to power about 800 homes 

each year. 

This onerous relicensing process has come at considerable cost to the two Authorities, as follows: 
28 

• The relicensing process costs (e.g., environmental and engineering consultant 

fees, environmental studies, legal expenses, document preparation, and other 

related expenses) have totaled over $10 million since inception, and the Authorities expect a total expenditure of over $11 million by the time the license 

is issued later this year. • Capital costs associated with implementing new license measures are estimated 

at $3.6 million (not including the capital costs of the new small generating facility at the spillway). • Annual costs associated with operation and maintenance of new protection, 

mitigation, and enhancement measures set forth in FERC’s staff preferred alternative (which includes measures in the relicensing settlement agreement) are 

estimated at $3.7 million. • In addition, the Authorities estimate that they lose $2.6 million in revenue each 

year as a result of enhancing recreation at Toledo Bend Reservoir by restricting 

normal hydropower production to periods when Toledo Bend Reservoir is above 

168 feet mean sea level (msl) (even though the Project was designed to draw 

reservoir levels down to elevation 162 feet msl for power generation). 

Together, these costs will increase the Project’s total operating costs by more than $7 million each year over a 50 year license term. For a Project with current operating costs of approximately $16.5 million annually, these relicensing costs substantially increase the Project’s total operating costs by nearly 44% annually, even if the 

FERC issues the statutory maximum new license term of 50 years. Of course, this 

increase would be even more substantial if the FERC issues a new license for less 

than 50 years. 

LAND EXCHANGE LEGISLATION

The Authorities very much need the enactment of S.1484, the Sabine National 

Forest Land Exchange Act of 2013, of which Chairman Landrieu is the lead sponsor. 

Senators David Vitter (R-LA) and John Cornyn (R-TX) are also original sponsors of 

this legislation. This legislation would remove some aspects of federal oversight 

under the FPA that potentially could cripple the many benefits provided by the 

Project on a going-forward basis. Currently, the presence in the Project of approximately 4,000 acres of federal land administered by the U.S. Forest Service imposes 

a considerable regulatory and cost burden on the Authorities, both now and into the 

future. The legislation sponsored by Chairman Landrieu, Senator Vitter and Senator Cornyn would remove these challenges and ensure that the Project can continue to be a valuable asset of the people of Texas and Louisiana. 

The existence of Sabine National Forest lands within the Project gives ‘‘mandatory conditioning authority’’ to the U.S. Forest Service under section 4(e) of the FPA. 

This broad authority allows the U.S. Forest Service to impose upon the Authorities’ 

FERC-issued license any conditions it believes would adequately protect and utilize 

Sabine National Forest. Because the U.S. Supreme Court has held that FERC has 

no authority to modify or reject these conditions, there is no guarantee that a future 

FERC-issued license will be balanced in the public interest for both developmental 

and non-developmental values, as required by the FPA. Given the unique structure 

of FPA section 4(e)—where one agency can override the action agency’s overall licensing authority—there is little opportunity in the relicensing process for the Authorities and other hydropower licensees to challenge the factual merits of the conditions. 

Fortunately, the Authorities were able to work closely with the U.S. Forest Service in the current relicensing process and resolve all their issues through a negotiated settlement of the FPA section 4(e) conditions that will apply to the new license. In a future licensing proceeding involving the Project, however, the Authorities should not be subjected to the risk that the U.S. Forest Service could impose 

onerous or crippling conditions to protect its narrow interests at the expense of the 

broader purposes of the Project. 

In addition, removal of Sabine National Forest lands from the Project, together 

with the assurance that other non-fee federal interests in Project lands would not 

trigger land use fees under FPA section 10(e), would remove the threat to the Authorities to pay extraordinary federal land use fees to FERC. According to an estimate by the Authorities, these FERC fees could be as high as $3 million annually, 

which would wreck the economics of the Project. The FERC is not collecting these 

fees from the Project for two reasons: (1) the FERC has found that Project power 

is provided to consumers without profit; and (2) the FERC has determined that it 

will not collect these fees at all from anyone right now, but has not rejected its authority to collect these fees. The potential liability of the Project for these fees is 

exacerbated because a prior land exchange in the 1980s retained the federal govern-
29 

ment’s ‘‘power site reservation’’ on over 30,000 acres of lands inundated by Toledo 

Bend Reservoir. This ‘‘power site reservation’’ is the alleged basis of this fee by the 

FERC. The Authorities are pleased about the refusal of the current FERC to collect 

these fees, but also are keenly aware that a future FERC could change this position 

and determine to collect these excessive and unjustified fees in the future. Because 

any further change in FERC policy could be devastating to the Project, we support 

a legislative solution that removes FERC’s power to collect fees for any interest in 

federal land at the Project. 

NO ADDITIONAL RELICENSING PROCESSES

Finally, we question why this Project should undergo another relicensing in 30 

to 50 years. At that point, the Project will have been operating for 80 to 100 years, 

which provides ample time to fully understand and address environmental effects 

of its operations. The comprehensive, complex, costly and time consuming ‘‘audit’’ 

of the Project—which is what the re-licensing process is all about—against the full 

spectrum of environmental laws of the nation will be completely unnecessary. The 

Project has now been through an original licensing and, very recently, a relicensing. 

SRA-Texas has no objection to remaining under the jurisdiction of the FERC according to the terms of our settled license conditions, which will contain sufficient authority to reopen the license, where justified, to address any implementation issues 

that might arise at the Project. 

We view this entire costly application process for a new license in 30 or 50 years 

to be an imposition of government expense of questionable value. This Project is an 

asset owned by the people of Texas and Louisiana, and it is the only FERC-licensed 

Project in the nation that is owned by two different states. This Project is not operated for profit, but for the benefit of the people of Texas and Louisiana. Therefore, 

we ask Chairman Landrieu to do all in your power to relieve this Project of incurring another major expense—which may be much greater in 30 or 50 years than 

our current relicensing—occasioned by the requirement to seek a new license periodically. 

CONCLUSION

Thank you, Madam Chairman, for your great interest in the success of the Toledo 

Bend Project and for this hearing that you are conducting on the Project. We appreciate your support and your leadership in Congress to address issues that will enable this important state asset to achieve its full potential as an electricity producer, 

a water supply facility and an engine of economic development for Eastern Texas 

and Western Louisiana. 

277 HWY 118, 

Florien, LA, May 17, 2014. 

Hon. MARY LANDRIEU, 

Chairman, Senate Energy and Resources. 

RE: Committee Hearing., Cypress Bend Complex, Toledo Lake 

Following are means that Federal Government can assist in increase of Economic 

benefits in area of Toledo Bend Lake and. Sabine River: 

While being blessed with a north/south 4-lane highway (U.S. 171) Shreveport To Lake Charles, Louisiana., most tourist from South Louisiana arrive 

via I-40, taking 2-lane La. Hwy 6 to Toledo Lake area. A bottle neck in 

town of Many Louisiana can be eliminated with funding cost of $450,000. 

Federal Funding of 80% is needed to begin the DODT project. 

Funding for Sabine River Authority Louisiana to construct a water supply lift station in Desota Parish for water supply used for FRACTURING in the Haynesville 

oil fields situated in Northwestern Louisiana and East Texas and for other area 

water needs. 

Funding for a salt water barrier on Sabine River. Salt Water, currently, is only 

a short distance from the Louisiana Diversion Canal that supplies fresh water for 

all the commercial ventures in Calcasieu Parish area—providing TENS OF THOUSAND Jobs. None of the plants can operate with Salt Water. This salt water barrier 

is a must—now—and not later. Should the salt water move north a short distance 

(to the Diversion Canal intake station)—more than 30,000 jobs will be lost. 
30 

These are only a few means in which federal Funding can and will impact economic cond. its in the Toledo BenD and Sabine River area. 

BOBBY WILLIAMS, 

Member, Sabine River Authority, Louisiana, Sabine River Compact Administration 

(La. & Texas), Sabine Parish Sales & Use Tax Commission,El Camino East/W 

Corridor Commission (La. 6 U.S. 84), Western Corridor Commission (U.S. Hwy 

171), West Louisiana Veterans Park 

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