GEOTHERMAL OPERATIONS

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1 9 GEOTHERMAL OPERATIONS

2 GEOTHERMAL DISTRICT BOUNDARIES AND OFFICES of the Division of Oil, Gas, and Geothermal Resources Headquarters & 8 K St., th Floor, MS, Sacramento, CA 98- District No. G Phone: Fax: 96-- District No. G 6 Wake Ave., Suite 7, El Centro, CA 9- Phone: Fax: District No. G D St., Room, Santa Rosa, CA 9-77 Phone: Fax: DIVISION OF OIL, GAS, AND GEOTHERMAL RESOURCES

3 SUMMARY OF GEOTHERMAL OPERATIONS Elizabeth A. Johnson, Geothermal Officer, Sacramento PROGRAM HIGHLIGHTS: GEOTHERMAL DRILLING ACTIVITY In 8, new high-temperature geothermal were drilled in California compared to drilled in 7. Twenty- two of these were drilled in the Brawley field, in the Salton Sea field and 7 at The Geysers (Figure ). footage drilled in 8 increased.7 times over the total footage drilled in 7-- 9,78 feet compared to 9, feet (Figure ). The need for sustainable power set against the turmoil of the world s economies created a chaotic 8. What 9 will bring in terms of developing geothermal projects is uncertain. However, one thing is certain, the increasing population s need for electricity. This need alone would seem to indicate increased geothermal development in California especially in areas of known potential. GEOTHERMAL REGULATIONS The regulations used by Division staff to regulate geothermal in California were updated in 8. Requirements were added for the maintenance of leases, well construction, spill contingency plans, and subsidence monitoring. Definitions were made clearer for observation and injection projects. CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) In 8, no new applications were received. Figure. Number of high-temperature geothermal drilled by year from 98 to 8. ENVIRONMENTAL AWARDS The Geysers Power Company, LLC (Calpine Corporation) received an award from the Department of Conservation for eight years of outstanding lease-enhancement activities at The Geysers Geothermal field. Mammoth Pacific also received an outstanding lease award for its maintenance of the Casa Diablo field. DISTRICT NO. G Jack Truschel, District Engineer, Sacramento NEW PLANT PROPOSED FOR MONO COUNTY Mammoth Pacific LP is planning to construct a fourth geothermal power plant at the Casa Diablo geothermal field near the Town of Mammoth Lakes, CA. The proposed plant will be air-cooled and will generate to MW net of electricity. The types of use permits and environmental documents required will depend on whether the plant is on private or public land. Figure. Geothermal well footage drilled in the last ten years includes no data from on federal lands except for the Coso and East Mesa fields. 8 ANNUAL REPORT

4 DISTRICT NO. G Michael Woods, District Engineer, El Centro BRAWLEY GEOTHERMAL FIELD Development continues by ORMAT at the Brawley field. Twentytwo were drilled in 8 and were drilled in 7. Drilling continues, both for the power plant nearing completion (9.9 MW) and a second proposed plant east of the New River. HEBER GEOTHERMAL FIELD In April, ORMAT commissioned the MW Heber South geothermal plant, adjacent to the existing Heber plant. Six were drilled for this project, with becoming producers and injectors. Another well will be drilled in 9. View from Fandango Pass in the Warner Range overlooking the northern portion of the Surprise Valley KGRA. Photo by J. Truschel. TRUCKHAVEN AREA On February, SDG&E announced its second power purchase agreement (PPA) with Esmeralda Truckhaven, LLC, for MW of power from Esmeralda s leases in the Truckhaven area. This brings the total of the two PPAs to 6 MW. The BLM s Record of Decision for geothermal leasing, exploration and development in the Truckhaven area was completed on August. All BLM lands in the area are available for leasing, subject to stipulations including unitization for both exploration and development purposes. IMPERIAL COUNTY In May, scoping meetings were held by the U.S. Navy in El Centro and San Diego in order to prepare a Draft EIS for a proposed geothermal project near the Superstition Mountains. Later in the year, the Navy drilled two,+ feet temperature gradient in the area. Mechanical integrity test of idle geothermal well Phipps near Cedarville. Photo by J. Truschel. ORMAT Brawley (ORNI 7, LLC) Production Well. Photo by E. Johnson. DISTRICT NO. G M. Ali Khan, District Engineer, Santa Rosa THE GEYSERS PRODUCTION In 8,. billion pounds of steam was produced and.97 billion gallons of water injected at The Geysers Geothermal field by Geysers Power Company, LLC (Calpine), Northern California Power Agency (NCPA) and Bottle Rock Power, LLC (BRPL), the field s three active operators. In 8, steam production at The Geysers decreased by.9 percent and injection decreased by.6 percent. The 8 injection volume constitutes about 7 percent of production, although cumulative injection throughout the life of The Geysers is 9.9 percent. In 8, 7.7 millionmegawatt hours of gross (7. million-megawatt net) electricity was generated, which is 8. percent higher than 7. DIVISION OF OIL, GAS, AND GEOTHERMAL RESOURCES

5 Cumulative percent injected is calculated by dividing the total mass of fluid injected into The Geysers Geothermal field by the total mass of steam produced from the reservoir. Northern California Power Agency s solar array. Photo by S. Enedy. WESTERN GEOPOWER DRILLING ON UNIT LEASES In 6, Western GeoPower Corp. of Canada acquired geothermal leases for what was previously the Unit area in The Geysers. In 8, Western GeoPower drilled and completed four new. Currently the are shut-in as possible steam producers. Construction of a MWe power plant is scheduled to commence in 9 and culminate in electric generation in. SONOMA COUNTY EFFLUENT PIPLELINE EXPANSION The City of Santa Rosa pipeline has been delivering million gallons per day (mgd) of tertiary treated effluent since its completion in December. In 8, the Santa Rosa pipeline delivered. billion gallons of treated-effluent (with a total of 6.6 billion gallons delivered since inception). The Lake County pipeline delivered. billion gallons in 8, bringing its total delivery to billion gallons. The combined effect of the Santa Rosa pipeline and the Lake County pipeline (which has been delivering about 8 mgd since August 997) has resulted in stabilizing decline in steam and electricity production, decreasing air emissions, and creating a viable solution for sewage problems of the cities in Sonoma and Lake counties. An expansion project was approved by the City of Santa Rosa to upgrade infrastructure to increase recycled effluent deliveries to the Geysers steamfield to 9.8 mgd. In another expansion, the City of Windsor will be allowed to pump its treated effluent into the Santa Rosa pipeline. The -year contract requires Windsor to pay Santa Rosa a total of $ million in maintenance and operational costs. In addition, the town will have to spend about $6 million to install a pumping facility and connect to the main pipeline. In 8, Northern California Power Agency (NCPA) installed a MWe, 6, solar-cell array for $8. million. This renewable electricity will augment PG&E-provided grid power that had been powering the Lake County pipeline effluent pumps, offsetting nearly 8, pounds of carbon. A second, similar solar project under construction near Middletown, will be completed in 9. ThermaSource rig drilling at Bottle Rock Power LLC s well Coleman 7-6. This is the first rig at The Geysers with automatic hydraulic pipe-handling. In the background is rig Kenai 6 drilling well California State 9-6 for Geysers Power Company, LLC. Photo by W. Leuzinger. 8 ANNUAL REPORT

6 DIVISION OF OIL, GAS, AND GEOTHERMAL RESOURCES

7 GEOTHERMAL STATISTICS

8 GEOTHERMAL OPERATIONS AND FEET DRILLED - 8 * Drilled Completed Redrilled or deepened Plugged & abandoned Feet drilled Field or county API county code Explor. Prod. Serv. Temp. grad. Explor. Prod. Serv. Temp. grad. Explor. Prod. Serv. Temp. grad. Explor. Prod. Serv. Temp. grad. Suspended New Reworks DISTRICT G Amedee Casa Diablo Lake City 9 Litchfield Susanville Wendel Lassen County Modoc County 9 Mono County Plumas County 6 Shasta County 89 Sierra County 9 District G s DISTRICT G Brawley ,99 Heber East Mesa Hot Mineral Spa Salton Sea,,9 Desert Hot Springs 6 9 Imperial County Inyo County 7 Coso 7 Kern County 9 Riverside County 6 San Bernardino 7 San Luis Obispo 79 District G s ,9,6 DISTRICT G Calistoga The Geysers 6 7,9 9,7 97,7 Lake County Mendocino County Napa County Sonoma County 97 District G s 6 7 9,67 9,7 STATE TOTALS ,7,8 * Data for federal leases, except Coso and East Mesa Geothermal fields are not included. CALIFORNIA S STEAM-DOMINATED GEOTHERMAL FIELDS * Year producing Gross steam produced active injection Water injected Percent injected The Geysers Geothermal field: 96 6, , 96 9,8 96 7,,9 96 7,88, 96 7,77, ,79,87 967,86,7 968,, ,8,66, ,7, 87, ,8,799,, ,777,7,9, ,6,,6, ,9,9,6, ,,67 7,7, ,99,87 7,77, ,7,7 6 7,96, ,6,96 6,, ,8,8 7 8,7, ,966,79 8,866,. 98 8,86,,9, ,7,7 9,9, ,89,8 9,8, ,67,99,, ,, 7 6,7, ,6,86 8,77, ,8,897 8,9, ,,6 9 8,, ,,78 9 8,8, ,6,8 7,8, ,66,88,77, ,,7 7,, ,79,6,8, ,6,98,6, ,,78 6,8, ,88,98,6, ,,78,96, ,6,97 9 9,9, ,,96,6,88.9 6,,8,,6. 6,778,7,687,7. 6,,8 9,78, ,6,7,89,8 7. 6,769,7 6 7,, ,97,6,9, ,66,7,679, ,76,,, ,896,797 7,,6 7. * Data for federal leases included. 6 DIVISION OF OIL, GAS, AND GEOTHERMAL RESOURCES

9 CALIFORNIA'S WATER-DOMINATED GEOTHERMAL FIELDS* District G - Northern California Geothermal field Year producing Gross water produced injection Water injected Geothermal field Year producing Gross water produced injection Water injected Amedee Casa Diablo 988**,8,87 NO INJECTION 989,778,86 99,,7 99,778,9 99,96,68 99,,67 99,97, 99,7,7 996,67,98 997,7,7 998,7,97 999,8,968,,99,7,8,,8,66,,,,68,89 6,669,96 7,69,9 8,7,868 98**,7,788,7,788 98,8,,8, 986 6,76,8 6,76, ,7,79 6,7, ,7,88 6,7, ,87, 6,87, 99 6,97, 6,97, 99,8,,8, 99,6,,6, 99,,66,,66 99,67,6,67,6 99 9,98,89,98, ,,6,, ,9,8,9, ,8,69,8, ,998,996,998,996 9,889,6,889,6 9,8,97,6, 9,7,78,99,7 8,9,,78,6 8,7,97,7,6 8,67,86,7,9 6 8,,8 +,9,6 7 8,,8,, 8 9,,6,9, Susanville Wendel 79,9 8,98 6,6 8,9 7 +, 79,6 8 8,8 98,88 98** 8, ,88,99 987,77,97 988,76,7 989,,9 8,7 99,68,68 978,66 99,,77 9,6 99,,79,7,8 99,7,86,,7 99,9,9,,6 99,, 96,77 996,, 79, 997,77, 6, ,96,66, 999,8,69 9,,969,68 6,97,988,9,,7, 7,8,68,799 9,7,,96,677,6,76 879,79 6,,6 9,9 7,9, 79,8 8,7,66 77, Litchfield 98** 9,9 NO INJECTION , , , ,8 989,6, , , 99 6, , 99 7,6 99 8, , , ,6 999,868 9,9 9,6 9,96 997,96 967, 6, ,867 PROJECT TERMINATED JUNE Susanville 98**,8,8 98 7, 7, 98,8,8 98 9,79 7,6 986,6 99, 987 6,7 76, ,878, ,79, ,7 97,8 99,9 97,8 99 8,7 98,66 99,78 97,8 99,6 97,8 99 6, 97, ,7 97,8 997, 97,8 998,97 97, ,66 8,7,7 7, 6,686,6 6,8 7,78 98,,69, 9,79 * Data for federal leases included. ** The first year that production data were reported to the Division of Oil, Gas, and Geothermal Resources. + Contains corrected data. 8 ANNUAL REPORT 7

10 CALIFORNIA'S WATER - DOMINATED GEOTHERMAL FIELDS* District G - Southern California Geothermal field Year producing Gross water produced injection Water injected Geothermal field Year producing Gross water produced injection Water injected Brawley Coso 98**,8,7,78, 98,97,7,,86 98,, 99,7 98,7 9, 986 PROJECT TERMINATED 987**,79,86,7,8 988,96, 6 9,,9 989,87,6,77, ,96,76 6,, ,,87 6,7,9 99 6,67, 6,9, ,99,9 8,8, ,,8 9,69, ,76,9,, ,8,9,8, ,7, 9,67, ,9,9 7,7, ,9,9 8,996, 8 9,87,86 8,6,98 8 9,6,6 7,66,7 9,,6 8 7,9,666 9,7,8 8 6,77, 9,,7 +,889,67 86,77,86 9,8,9 6 8,9,,699,9 7 8,78,8 7,78, 8 8,,8,67, Salton Sea 988 9,7,66 7,87, ,7,76 8 7,8,6 99 7,9,6 6,97, ,687,699 68,88, ,67,67 69,7, ,79,7 66,6, ,76,6 69,97,9 99 8,97, 7,9, ,779, 6 8,86,89 997,8,76 9 8,698, ,7,79 8 9,8, ,8, 99,86, 8 88,7,8 7 7,,9,99,97 7 8,6,6,8, ,7,9 9,86,9 8 79,98,,6, 96,868,99,6, 6 89,7,87 6 8,,7 7,888,9 7 9,69, 9 9,7,7 8,6, 8 8,69,8 East Mesa 98**,96,,9,9 98 6,,7,96, ,69,98,8, ,7,6,99, 987,87, 6,7,76 988,9,96,9, ,99,9 7,796, ,,6 7,6,9 99 9,98, ,6, ,7,78 9 9,7, ,89,6 96,9, ,89, 87,98,9 99 9,88,7 86,97, ,6,79 89,67, ,797, 89,, ,787, 6 8,9, ,79,6 8,86,69 69,7,7 67,6, 7,9,9 7,9,6 7,, 6 7,9, 78,7,69 6 7,,7 76,878,86 6 7,7,97 7,96,698 7,8,9 6 7,9, 7,, ,79,76 7,7, 8 7,69,7 7,, Heber 98** 9,8,68 8,, 986,6,68 9,76, ,7,9,, ,769,9 6,, ,8,68,976,7 99 9,87,7 9,8, ,,87 9,, 99 9,78,68 9 6,86,8 99 7,67,86 7 8,,77 99,988,69 9,6, ,6,8,87, ,8,68,67, 997 6,,89 6,9, ,7,8 6,8, ,77,7 8,,79 6,78,9 9,89,87 6,86,8 7,867,66 8,9,6,9,9 6,,99 6,98,98 6,7, 6,,9 6,8,88 7,6, 6 6,6, + 6,9, 7 66,96,96 + 6,6,9 8 7,86, 69,, Salton Sea 98**,8,6,7,77 98,7,,6,76 98,8,9,,6 98,67,97,9, ,,79 7,8, ,7,78 8,9,9 * Data for federal leases included. ** The first year that production data were reported to the Division of Oil, Gas, and Geothermal Resources. + Contains corrected data. 8 DIVISION OF OIL, GAS, AND GEOTHERMAL RESOURCES

11 GEOTHERMAL NOTICES FILED AND INSPECTIONS - 8 * Field or county Explor. Notices to drill Prod. Serv. Temp. grad. Explor. Notices to rework DISTRICT G Amedee Casa Diablo Lake City Litchfield Wendel Susanville Lassen County Modoc County Mono County Plumas County Shasta County Sierra County District G s Prod. Serv. Temp. grad. Explor. Notices to plug & abandon Prod. Serv. Temp. grad. inspections by district DISTRICT G Brawley Heber East Mesa Hot Mineral Spa Salton Sea 6 7 Desert Hot Springs Imperial County Inyo County Los Angeles County Riverside County San Bernardino San Luis Obispo Kern County District G s DISTRICT G Calistoga The Geysers 8 Lake County Mendocino County Napa County Sonoma County District G s 8 68 STATE TOTALS 8 7 6,7 * Data for federal leases not included. The drilling permits issued by the Bureau of Land Management (BLM) for geothermal development on federal lands in California decreased in 8. According to the BLM, no were permitted during federal fiscal year 8 (October 7-September 8), compared with well permitted the year before. GEOTHERMAL EXPLORATORY WELLS DRILLED TO TOTAL DEPTH IN 8 County T. R. B. & Sec. M. Operator Elev. Month drilling depth Stratigraphic units penetrated and/or time-stratigraphic units at total depth Well designation and API number (feet) completed(meters) (depth in meters) Sonoma N 9W MD Western GeoPower Inc. WGP 7 May Conf Conf 9798 Sonoma N 9W MD Western GeoPower Inc. WGP 7 August Conf Conf 9798 Sonoma N 9W MD Western GeoPower Inc. WGP 66 October Conf Conf Sonoma N 9W MD Western GeoPower Inc. WGP 66 December Conf Conf Lake N 8W 6 MD Geysers Power California St 87 November,9 Franciscan Company, LLC 9-6 Assemblage 98 Imperial S E SB ORNI 7,LLC 6- - August Conf Conf 96 Data for federal leases not included 8 ANNUAL REPORT 9

12 6 DIVISION OF OIL, GAS, AND GEOTHERMAL RESOURCES Specific Draft EIR 8 Negative declaration General Projects filed Notices issued Reports GEOTHERMAL CEQA APPLICATIONS AND SITE VISITS Site inspections Final EIR Determination Exemption Preparation Other Exploratory Temperature gradient Year

13 FLUID PRODUCED AND INJECTED, AND POWER PLANT CAPACITY FOR CALIFORNIA GEOTHERMAL FIELDS DISTRICT NO. G AMEDEE GEOTHERMAL FIELD CASA DIABLO GEOTHERMAL FIELD WENDEL GEOTHERMAL FIELD DISTRICT NO. G BRAWLEY GEOTHERMAL FIELD COSO GEOTHERMAL FIELD 8 ANNUAL REPORT 6

14 DISTRICT NO. G (continued) EAST MESA GEOTHERMAL FIELD HEBER GEOTHERMAL FIELD SALTON SEA GEOTHERMAL FIELD DISTRICT NO. G THE GEYSERS GEOTHERMAL FIELD '7 '8 6 DIVISION OF OIL, GAS, AND GEOTHERMAL RESOURCES

15 6 FINANCIAL REPORT

16 The following report is made in accordance with Section 8, Division, Public Resources Code, which reads as follows: ''On or before the first day of October of each year the supervisor shall make public for the benefit of all interested persons, a report in writing showing: (a) The total amounts of oil and gas produced in each county in the state during the previous calendar year. (Figures for 7 are published in the 7 Annual Report of the State Oil and Gas Supervisor.) (b) The total cost of the division for the previous fiscal year. (c) The total amount delinquent and uncollected from any assessments or charges levied pursuant to the chapter. The report shall also include such other information as the supervisor deems advisable.'' FINANCIAL REPORT are raised by an assessment on oil and gas production as provided for in Article 7 of Division, Public Resources Code. The assessment is based on the projected expenditures of the Division, taking into account any previous surplus or deficiencies, and the prior year s production. For the 8-9 fiscal year, the rate of assessment was established at $.7978 per barrel of oil or ten thousand cubic feet of gas. As provided for in Chapter, Division, Section 7. of the Public Resources Code, the Division is also partly funded by an annual assessment levied on operators of high-temperature geothermal resource and by drilling fees charged to geothermal operators for drilling new or redrilling abandoned. Collection of Funds by Assessment Funds for the support of the Department of Conservation's Division of Oil, Gas, and Geothermal Resources For the 8-9 fiscal year, the fee-assessment was established at $,7 per high-temperature geothermal well. Financial Statement 7-8 Fiscal Year Beginning Resources.... $,,6. Balance Available from Prior Year... $ 68,6. Revenue Applicable to Oil, Gas, and Geothermal Operations. $ 8,69,7. Resources $,69,88. Expenditures.. $ 7,9,6. Ending Resources $,698,. Hazardous and Idle-deserted Well Abandonment Expenditures 7-8 Fiscal Year No. of Wells... Hazardous and Idle-deserted Wells Plugged and Abandoned.. $ 87, Section 7 PRC Wells Plugged and Abandoned... $,7.... Acute Orphan Well Account... $ 6, Orphaned Wells Plugged and Abandoned (HIDWAF)... $, Wells Plugged and Abandoned. $,79, Wells On Which Remedial Action Was Taken.. $. Gross Expenditure. $,79,669.9 Bond Reimbursement $ -,. Lien Reimbursement... $ - 6,77. Net Expenditure. $,7,898.9 Underground Injection Control Program Expenditures (Oct., 7 Sept., 8, Federal Fiscal Year)* Beginning Federal Grant Allotment... $ 7,. Balance Available from Prior Year... $. Resources $ 7,. Federal Dollar Expenditures... $ 7,. Ending Resources $. * Amounts reflect federal funding only, state matching funds are not reflected in the amounts. 6 DIVISION OF OIL, GAS, AND GEOTHERMAL RESOURCES

17 List of Delinquent Assessments and Penalties: Oil, Gas, and Geothermal Operations as of June, 8* OPERATOR ASSESSMENT OIL AND GAS OPERATORS Crest Oil & Gas Mgmt Corp. $69. Highland Energy Res Co. $9.6 Melvin C. Love $7.6 Nevada Titan Energy, Inc. $9. Pacific Petro Tech., LLC $.8 PetroTerra Resources, LLC $7.9 Silver Exploration Company $8. Two Bay Petroleum $7. : $,8.7 * Periodically, the State Controllers Office discharges uncollectable assessments and removes them from the List of Delinquent Assessments. In 8, the Controller s Office discharged the following past-due assessments: OPERATOR ASSESSMENT OIL AND GAS OPERATIONS Blackhawk Oil Co. $,9. Cal Cont Capital Inc. $. Calpine Natural Gas, L.P. $6.6 Casa Oil Associates, Inc. $7. Kalco Development Corp. $,.7 Kelt Oil & Gas, Inc. $.6 Marlin Pacific Oil & Gas $,8.7 Maxoil Inc. $7.68 Nahama & Weagant Energy Co. $,66.9 Pueblo Oil & Gas $8.6 Superior Well Service, Inc. $,. United Energy Inc. $9,6.89 : $6,89.8 Geothermal Operations: Geo Operator Corp. $7,7.7 Geysers Power, Inc. $6,. : $,8,7. Grand : $,7,6.8 PR6 (/9) 8 ANNUAL REPORT 6