ORAC votes to exit Lake Oroville settlement agreement at meeting

OROVILLE – The Oroville Recreation Advisory Committee voted 5-4 to exit the Lake Oroville settlement agreement on Friday, an action that could have big implications.

The committee, known as ORAC, was one of over 50 groups that signed onto the agreement 12 years ago, which would allow the state Department of Water Resources to operate the dam for up to another 50 years, if approved by the Federal Energy Regulatory Commission.

In exchange, approval of a new license would trigger over $61 million in slow trickling benefits to Oroville recreation.

The thing is, the commission still has yet to sign off on the agreement and issue DWR a new license – 12 years later. Since then, much has changed, including the Oroville Dam spillways, which are being reconstructed after their failure in February 2017.

ORAC member Larry Grundmann said that frustration with DWR has “long been brewing” to get to this point. ORAC has been trying to appeal to the commission directly, as opposed to going through DWR, for things like a new large dog park and the department has been opposing those requests.

The committee was challenged as to whether it could actually vote on the item, which wasn’t on the agenda, but ultimately it did vote.

ORAC member Bill Connelly, who also serves on the Butte County Board of Supervisors, described the meeting as a “very contentious” one. Connelly said the committee did not notify other signatories of its plans to withdraw, but that the committee hoped other groups would join in.

He said the goal with exiting the settlement is basically to get a better deal. One thing he mentioned which he has long advocated for is subsidized power for locals, since water from Lake Oroville benefits 26 million people downstream.

“We can negotiate,” Connelly said. “I don’t think we could ever have someone else manage the dam but I do think we could be treated in a more equitable manner.”

It’s unclear what would happen to funds released and projects completed early by DWR, ahead of receiving a new license. After the Oroville Dam crisis, DWR issued $3 million early to the Supplemental Benefits Fund, which is the liason group between the department and the signatories including the city of Oroville.

The department has been completing projects in the agreement including expanding parking and boat lanes in the Lake Oroville Recreation Area. The Oroville Area Chamber of Commerce is also currently benefiting from the agreement.

The department may challenge entities that try to exit the agreement on legal grounds.

Contacted on Friday evening, Erin Mellon, a spokeswoman for DWR, did not have a comment, but said she would have information about any legal implications on Monday.