Casa Diablo and Heber

Environmental and Resource Due Diligence for Geothermal Asset Sale

Client : Global Power Solutions; Marin Power Corp.; Cerberus
Geologica Geothermal Group conducted the environmental and resource due diligence for more than $200m of geothermal assets owned by Covanta Energy Systems Inc. Our work involved an extended Phase I Environmental Site Assessment and overall resource review for production and generation facilities in Heber, California and Long Valley caldera. Preliminary data analysis involved extensive review of the production history at each area and the environmental documentation related to production and generation operations. Ownership transitions and differing production schemes required different operating practices at separate but related geothermal assets in Heber. Geothermal production in a very sensitive resort area required extensive monitoring and documentation in Long Valley Geologica Geothermal Group visited both geothermal fields to evaluate the physical conditions of each site, related environmental impacts and resource data. Geologica Geothermal Group also conducted on-site interviews with the developer and local technical personnel to establish production practices and the potential for environmental impacts related to the current operations. Site visits reviewed document archives related to field production history and past exploration and development operations. Geologica Geothermal Group also initiated a resource capability review to evaluate production capabilities at each field. Existing reservoir models were reviewed to establish the resource potential and probable future production capabilities for each field. Resource estimates were used to project financial rates of return for future production and probable expansion or development of additional geothermal resources.