Local Impact Mitigation

Compensation to Homeowners

KRRC is committed to a transparent and collaborative process to address demonstrated physical damages on private property.  KRRC will comply with all regulatory requirements, including permit conditions related to impacts on the environment.  KRRC is not authorized to spend public funds to compensate property owners for a real or perceived loss in property value that does not involve physical damages.

Based on work by KRRC and its consultants, many area groundwater wells are not hydrologically connected to the existing reservoirs and, as a result, will not be impacted by dam removal. However, some wells in the immediate vicinity of the reservoirs may be affected by reservoir drawdown, and KRRC will work with landowners to mitigate impacts from wells that have a demonstrated impact due to dam removal.

KRRC is voluntarily proposing a process to proactively address physical property damages demonstrated to be caused by our project. We plan to establish a “Local Impact Mitigation Fund” (LIMF) in which impacted parties can participate. The LIMF would address demonstrated physical damages through settlements with willing property owners even when such damages may not be legally required.  The LIMF will cover demonstrated damages such as reduced well production, issues associated with instability around the reservoir rims, and certain minor increases in the risk of flooding for dwellings downstream from the dams.

KRRC will select an independent person to administer the fund (the Fund Administrator). We have been asked if funding information for the LIMF will be made public. Yes! The Fund Administrator will conduct town halls and seek public feedback and welcome your views. After such consultation the Fund Administrator will establish claim-related funding criteria as well as an overall fund amount and then enter into direct discussions with property owners regarding compensation for potential property damages.

Once the LIMF is finalized, the Fund Administrator will oversee the fund and make compensation decisions independent of KRRC. Each property owner will elect whether to enter into a settlement with the Fund Administrator.  This approach has been used with other complex projects elsewhere, resolving damage claims in a fair, transparent, and timely manner. KRRC is pleased to employ this tested and effective model of compensating affected property owners.