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the pipe manufacturer for enough money to install additional pipe breakage alarms, do<br />
more frequent pipe inspections, reline the pipeline more often and possibly replace the<br />
pipeline decades earlier than its expected 100-year life. In 2006, the second attempt at<br />
mediation resulted in a settlement agreement, which the Council approved four days later.<br />
The agreement provided the City with approximately $15 million from the contractor and<br />
pipe manufacturer to set aside for the future needs of Lakewood Pipeline.<br />
Ned Williams, Bob Harberg, Sue Ellen Harrison, June Busse, and Carol Ellinghouse, along<br />
with many other City staff members, had devoted years of their careers to seeing Lakewood<br />
Pipeline rebuilt. They now believed that the saga of the Lakewood Pipeline easement<br />
was ended with the completion of the reconstruction in 2004. But, it was not.<br />
In 2004, the Forest Service informed the City it wanted to reopen the 2001 easement<br />
agreement because of the substandard pipe. The new Forest Service proposed easement<br />
agreement contained insurance and liability provisions like the ones that the City had rejected<br />
in 2001, as well as new vague easement suspension language.<br />
After much new negotiation, City and Forest Service staff came to agreement on language<br />
to present to City Council in 2009. However, the Council had apparently decided it had<br />
reached a limit with the Forest Service demands and declined to approve the new terms of<br />
the easement, establishing the City view that the 2001 easement agreement is binding.<br />
Lakewood Hydro Plant<br />
Prior to the reconstruction of the Lakewood Pipeline, energy from the falling water was<br />
dissipated by its high velocity, as well as by a pressure reducing valve at the Betasso Water<br />
Treatment Plant. The Pipeline’s reconstruction as a fully-pressurized pipe made it possible<br />
to use the pressure to drive a turbine and generator at a new hydroelectric plant––the<br />
Lakewood Hydro.<br />
Construction of the Lakewood Hydro Plant was started in 2003. Once the Lakewood Pipeline<br />
reconstruction had been completed, in 2004, this newest of the hydro plants was put<br />
into service. It’s located in the same building as the Betasso Hydro Plant, on the grounds of<br />
the Betasso Water Treatment Plant.<br />
Plant In Service Treated/Raw Penstock<br />
Lakewood 2004 Raw 24” – 9.8 miles long (from an<br />
elevation of 8,180 feet at Lakewood<br />
Reservoir to 6,340 feet at the<br />
Betasso Water Treatment Plant)<br />
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