News >
Coso Operating Company Executes Settlement Agreement Eliminating Challenge to Terra-Gen Power’s Hay
Coso Operating Company Executes Settlement Agreement Eliminating Challenge to Terra-Gen Power’s Hay Ranch Water Project
8/18/2009
Terra-Gen Power, LLC, (Terra-Gen), a wholly-owned affiliate of ArcLight Capital Partners (ArcLight), announced today that its corporate subsidiary Coso Operating Company, LLC (Coso) has executed a settlement agreement with Little Lake Ranch, Inc. (LLR), which resolves pending litigation challenging the approval of Terra-Gen’s Hay Ranch Water Project.
Terra-Gen is pleased to announce today that it has resolved a claim in California Superior Court associated with the Hay Ranch Water Project and continues to press forward with construction of the Project on federal lands. The Hay Ranch Project plans to use supplemental water injection to restore power production at the existing Coso geothermal plant located in Inyo County, California. The Project has undergone extensive environmental review processes at both the federal and state levels and has received key permits from the County of Inyo and the BLM. These environmental reviews concluded that, with mitigation, the Project would not result in any significant impacts. LLR filed a lawsuit on June 5, 2009 challenging the Project. Among other claims, the lawsuit alleged that the Hay Ranch Water Project may impact Little Lake, a small lake located in Rose Valley used for duck hunting, recreation, and habitat conservation purposes.
Following extensive negotiations, Coso and LLR reached a settlement on August 17, 2009 allowing the Project to proceed without further litigation. Coso will assist LLR in providing improvements around Little Lake to ensure that water for recreational and habitat conservation purposes remains available, consistent with historic conditions. Jim Pagano, CEO of Terra-Gen said, “We managed to find a win-win situation here,” and emphasized, “Terra-Gen stands by our commitments and we are excited to move this Project forward in an environmentally responsible manner.”
When completed, the Hay Ranch Water Project will boost renewable energy production at the Coso geothermal resource and allow geothermal energy to serve an estimated 50,000 additional California homes. Terra-Gen anticipates completing construction of the 9-mile pipeline in late 2009, which will be used to deliver supplemental water to the Coso project.
ABOUT COSO:
The Coso Geothermal Facility is a renewable facility located on the China Lake Naval Air base in Inyo County, California. The project has been producing clean renewable power since 1987, and has historically delivered up to 270 MW to the grid. Coso has a long-term agreement with the Navy for use of resource and land area through 2034. The project also has long-term geothermal leases with the BLM. The project has a long-term power purchasing agreement with Southern California Edison and has the potential to provide renewable energy for up to 300,000 homes and businesses.
