September 19, 2011

RE:   Hatfield Hydroelectric Project, No. P-10805

         Hatfield Hydro, LLC

         Power Canal Draw Down for Mandated Repairs

Dear Property Owners,

On behalf of Hatfield Hydro LLC, Licensee, North American Hydro Holdings Inc. would like to take this opportunity to inform property owners of a draw down of the power canal at the Hatfield Hydroelectric Facility located on the Black River at Lake Arbutus. The power canal is located between the generating station (powerhouse) and the dam near the Town of Hatfield in Jackson County WI.

The draw down will allow for federally mandated repairs to be made to the power canal, and will impact public use as well as land owners with property adjoining the back waters of the power canal. The draw down began on September 20^th and has a target date of reaching the maximum draw down depth of 5ft by September 30^th.. The rate of draw down will be gradual, and not exceed 6 inches in any 24-hour period.

Once the necessary repairs have been completed, the canal and its associated backwaters will be returned to their normal operating levels. We do not have an exact date for refill, but anticipate the repairs to be completed in 2011.

This letter serves as your notice to make appropriate arrangements in preparation for this drawdown.

Hatfield Hydro LLC appreciates your cooperation and support for the canal maintenance project. This project will improve the power canal and ensure the continued recreational use of the back water areas.  We regret any temporary inconvenience that this maintenance may have caused. If you have any questions regarding the draw down please direct your question to Mr. Jereme Klassy at 920-293-4628 ext. 22.

                                                                                   Sincerely,

                                                                                  North American Hydro Holdings Inc.

                                             Jereme Klassy

                                                                   Regulatory and Compliance

The Hatfield Hydro will be conducting water releases from the dam on the Black River at Hatfield three more times this summer. Intermediate to ad-vanced skilled kayakers will be able to enjoy the whitewater experience July 16, August 14 and September 10. The target flow for each date is between 200 cfs to 400 cfs.

The releases are expected to produce an excellent surf wave in the east channel of the river. Depending on the flow and the location, the whitewater flow will create Class II, III and IV pool-drop rapids. Boaters are advised they paddle during those release times at their own risk.

The launch site for the 400 cfs re-lease is 300 yards downstream of the Hatfield dam at West Clay School Road. The launch site for the 200 cfs or lower release is via a service road upstream of County Highway K bridge. There is a small parking lot at the location and paddlers are asked not to park on the canal embankment.

The Hatfield Hydro is managed by North American Hydro Holdings. The company is providing the flow releases in conjunction with the Friends of the Black River, National Park Service, the Wisconsin Department of Natural Resources and American Whitewater.

Paddlers can get more information about the releases and flow updates by calling 888-493-7694.