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NOTICE OF FINDING OF NO SIGNIFICANT IMPACT

| September 3, 2007 9:00 PM

Date: August 24, 2007

To: All Interested Government Agencies, Public Groups, and Individuals

Subject: Environmental Determination for the Sagle Valley Water and Sewer District Water System Expansion Project

In accordance with procedures implementing the State Revolving Fund (SRF) program, an environmental review has been performed and a Finding of No Significant Impact (FONSI) issued by the Department of Environmental Quality (DEQ) for the following project:

Sagle Valley Water and Sewer District Water System Expansion Project

Bonner County,

Sagle, Idaho

This environmental determination was made as a result of the review process indicating no significant environmental impacts would result from the proposed project. Based on the consultations with agency and resource experts, DEQ evaluated the potential short and long-term impacts, and the direct, indirect and cumulative impacts of the proposed water system expansion. The evaluation emphasized site-specific components of the environment that are most likely to be impacted by construction and operation of the proposed project.

One possible short term impact that could occur during project construction is a disturbance of the Bald Eagles in the Sagle Slough nest. To avoid disturbing the eagles during nesting, fledgling or wintering activity time periods, the project biologist recommends that construction of any feature of the proposed project located within 1,500 feet of the eagle nest should be installed during August and September. The Bald Eagle was delisted by the U.S. Fish and Wildlife Service on August 8, 2007. With the delisting of the Bald Eagle, the mitigation described above is not required; however, adhering to the mitigation recommendation is still encouraged as a good conservation measure.

Description of Project: The proposed project will unite the existing Sagle Valley Estates, Cedar Grove Estates, Sagle Pines Estates, Algoma Village and the Sagle Elementary School public water systems into one water system. Consolidation of these water systems will involve the construction of a 300,000 gallon above ground storage tank; the connection of four (4) wells, including the two 55 gallon/minute Cedar Grove Estate wells, the 100 gallon/minute Sagle Valley Estates well, and the 100 gallon/minute Algoma well; the installation of 5,560 feet of 12 inch, 6,700 feet of 10 inch, and 9,500 feet of 8 inch water mains and the installation of numerous water services, meters and fire hydrants.

Copies Available: Copies of the full notice of the FONSI, the engineering report and the EID upon which it is based are available for public examination at the following locations:

Department of Environmental Quality Department of Environmental Quality

State Office Coeur d'Alene Regional Office

1410 N. Hilton St. 2110 Ironwood Parkway, Ste B.

Boise, Idaho 83706 Coeur d'Alene, Idaho 83814

Attn: Nancy Bowser Attn: John Tindall and Katy Roeske

(208) 373-0406 (208) 769-1422

Sagle Valley Water and Sewer District

83 Meadow Lark Drive

Sagle, Idaho 83860

Attn: Mr. Mark Cherry, President

(208) 841-8518

Public Comments: Comments supporting or disagreeing with this decision may be submitted to the following address at DEQ for consideration:

Nancy Bowser, Department of Environmental Quality, Water Quality Division, Loan Program, 1410 N. Hilton Street, Boise, Idaho 83706, or call (208) 373-0406.

Such comments must be postmarked or delivered on or before September 28, 2007. Public comments will be considered in finalizing the planning phase of the project. No administrative action will be taken on the project for at least thirty (30) calendar days from the date of notice publication.

Barry N. Burnell

Administrator, Water

Quality Division

Legal SNP 8931

August 29, 2007