Adair Power moves forward with natural gas power plant program

HOUSTON, Oct. 8, 2001 – John W. Adair, Chairman of Adair International Oil & Gas, Inc. released the following relating to the natural-gas-fired power plant development program of its wholly owned subsidiary, Adair Power, LLC.

Adair has a site development agreement with Calpine Corporation to develop a 600-megawatt power plant in Southern California named the Teayawa Energy Center (TEC).

The 600-megawatt, natural-gas-fired power plant will be located on a 41.5-acre parcel of tribal trust land in Riverside County, California. The parcel is located along 62nd Avenue, east of Johnson Street near the Coachella Canal, northeast of the town of Mecca, California. Natural gas would be supplied to TEC through a new gas pipeline connection to the nearest, Southern California Gas Company intrastate pipeline. The preferred route for this connecting pipeline is north from the proposed TEC site along an existing utility corridor, to an interconnection point on the intrastate line located north of the Interstate 10 freeway. To provide cooling for TEC, approximately 4000 acre-feet per year of process water would be needed. The preferred source for this water is via connection to the Coachella branch of the All American Canal (Coachella Canal). TEC would use a “zero liquid discharge” system for treatment of process wastewater, including cooling tower blowdown. Water cycled in a cooling tower is concentrated into a sludge-like consistency and evaporated from onsite ponds. The resulting mineral concentration that builds up in the ponds would be stored, dried and eventually hauled off site for disposal at an appropriate landfill.

Potable water would be supplied to TEC by a groundwater well on site. This would also provide a backup source of cooling water when canal water is unavailable. Sanitary waste would be collected in a storage tank and periodically trucked to an offsite treatment plant, or disposed using a septic tank and leach field, if soil conditions permit.

Electricity produced by TEC would be transformed up to transmission level voltage at an onsite switchyard that would be connected to the double circuit, 230-kilovolt (kV) transmission lines owned by the Imperial Irrigation District (IID). These existing transmission lines are located immediately east of the proposed TEC site, on the eastern edge of the Coachella Canal. To mitigate potential, localized transmission system congestion and reliability problems, TEC would include a new electrical transmission line segment to an IID substation in the city of Coachella, California. In addition, re-conductoring and related improvements will be made to existing offsite transmission lines owned by IID and Southern California Edison (SCE) and situated between the Coachella substation and the SCE grid.

Alternatives to the proposed project that are considered in the DEIS/EIR include alternative natural gas pipeline routes, alternative water sources, a smaller energy center and no action (no project). Resources and issues discussed in the Draft Environmental Impact Statement (DEIS)/Environmental Impact Report (EIR) include water, biological, agricultural, mineral, paleontological, cultural and visual resources, geology and soils, land use, air quality, noise, traffic and transportation, public health/environmental hazards, worker safety, hazardous materials, hazardous waste handling, public services and utilities, socioeconomic, environmental justice and Indian trust assets.

The project has recently been filed with the Federal Registry, which can be accessed for further information.

In addition, an Adair Consortium has signed a Letter of Intent to purchase an existing co-generation facility with a capacity of up to 45-megawatts. This is a green power project and Adair will own in excess of 30% and be the managing operator. Adair also has nineteen (19) other sites under evaluation at this time.

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