1993.

 Commercial Feasibility Analysis for Fuels from Pinyon-Juniper Biomass

This is the first document I found in 1998. It is no longer on the web, but sections are downloaded on my old computer. It is an assessment of the power potential for the pinyon in Eastern Nevada. Prepared by G. Morris.

 

 Quincy Library Group (QLG), California Energy Commission (CEC), California Institute of Food and Agricultural Research (CIFAR), Plumas Corporation, TSS Consultants, NREL and others.

This study involves mainly forest thinnings (70% White fir, 20% Ponderosa pine, and 10% Douglas fir). The design is for six sites (five with already existing biomass power plants) with 230-300,000 BDT/year at each site and a delivered price of $30-40/BDT. A preliminary evaluation of the process economics for each of three technologies (concentrated sulfuric acid, dilute sulphuric acid, dilute nitric acid) was undertaken. Other activities include a site characterization study, ethanol market assessment, environmental impact assessment, and socio-economic impact assessment. There are currently two locations (Oroville and Chester) undergoing detailed industrial assessment.

 

1994.


The Department of Energy and Forest Products Industry enter into a compact Entitled Agenda, 2020 the agenda includes forest feedstock biomass power.   The Department of Energy’s (DOE) national biomass power program outlined an ambitious plan to provide as much as 50,000 MW of biomass power by the year 2010 (DOE, 1993). The program activities include improving performance of today’s biomass power plants, evaluating and utilizing biomass fuels

for cofiring, develop next-generation technologies including integrated gasification/advance turbine systems, and assuring availability of biomass fuel supplies from dedicated feedstock supply systems

(DFSS).


 .

 

1997

Nevada Energy Office proposed using forest organic materials (biomass), produced through mechanical thinning, as fuel for the generation of electricity. Because of the scarcity of federal and state funds to pay for the necessary disposal of forest thinning residues, the green power concept has significant interest in the Lake Tahoe basin.1 Energy For Nevada - Report to Legislature 2000

June 6 1998

Nevada State Public Lands Minutes

Pinion juniper: A plan to harvest pinion (also pinon, piñon, or pinyon) juniper for beneficial use has been received from Resource Concepts, Inc., which has studied the feasibility of using the resource for fueling a power plant and making lumber products. Harvest and regrowth sustainability is structured into the plan that will encourage biodiversity. (NOTE- Resource Concepts provided comment on Mt. Wilson and Ely plans)

1999 NREL G. Morris: Green Power Institute, Berkeley, California The Value of the Benefits of U.S. Biomass Power

Because of past forestry practices and aggressive fire-fighting efforts during the past 80100 years, vast areas of American forests are overstocked with biomass material, which represents an increased risk of destructive wildfires and a generally degraded functioning of the forest ecosystems. An additional 1.6 million tons/yr of residues will be allowed to accumulate in overstocked or otherwise unhealthy forests and watersheds. These residues will exacerbate the risks of destructive wildfires and ecosystem degradation.

1998 and 1999

 

REGIONAL BIOMASS Energy Program Project grant (2000)

These residues will be produced through a massive ecosystem restoration and fuel loading reduction project developed by the U.S. Bureau of Land Management (BLM), called the Eastern Nevada Restoration Project. This project would impact approximately six million acres of lands containing P-J-approximately one-third of the entire Great Basin! Biopower utilization of the P-J resource would involve short-distance transport of the biomass feedstock to one or more small (0.5-5.0 mW), portable biopower plants. Nevada's investor-owned utility or other sellers could purchase the power in order to meet the state's domestic renewable energy portfolio standard, which becomes effective January 1, 2001. http://www.ott.doe.gov/rbep/stateproj.html#nv

October 29, 1999

NORTHEASTERN GREAT BASIN RESOURCE ADVISORY COUNCIL

MEETING MINUTES

Mr. Tucker(BLM) stated that Lincoln County has been working with Resource Concepts Inc. Mr. John McLane was contacted and he indicated a proposal on bio-mass management. Mr. Tucker will inform the RAC upon acceptance of this proposal and provide further discussion. Gene Kolkman, Ely Field Office Mr. Kolkman additionally discussed the Pinyon and Juniper issue. Chainings, prescribed burns and bio-mass projects. dwww.nv.blm.gov/rac/Minutes/NE_minutes/10-29-99minutes.pdf

2000 Report to Nevada Legislators on Energy

Dave McNeil made a presentation to Lincoln County Power District (LCPD) staff at a meeting in Pioche in August regarding bioenergy utilization of biomass produced from thinning of Pinyon Pine and Juniper forestlands under BLM management. This presentation was requested by the Lincoln County Board of Commissioners. Others in attendance included representatives of a North Dakota biopower technology development firm, the Nevada Lieutenant Governors office, and staff of the Nevada Commission on Economic Development. The meeting revealed that the LCPD is not interested in buying the biopower at this time due tocurrent supply contracts vs. demand. However, LCPD is supportive of wheeling the power to neighboring utilities/local markets for green power, such as through pending Renewable Portfolio Standard (RPS) requirements.

NSEO staff also made presentations on biomass-based green power to federal land management staff and rural local government and economic development interests in rural Nevada (Ely) and in Reno regarding the wisdom of developing a program using Pinyon Pine and Juniper residues. The residues would be produced through mechanical thinning designed to reduce fire fuel loading and improve ecosystem health. Feedback from the presentations was extremely positive with commitments expressed to pursue the idea further.

Nation Fire Plan Grant - Economic Development Fund- Nevada FY 2001
$200,000 given to Nevada Development Commission - (see

National Fire Plan Grant -Economic action pilot projects Nevada 2001 budget
- $260,000 in grants to state, federal,county, local, and tribal governments (and not-for-profit organizations) to assist communities in expansion and development of markets for wood products resulting from hazardous fuels removal and underutilized small-diameter material. Demonstration projects showing end use such as timber bridges, round timber construction, and biomass-to-energy projects will be
emphasized. (,
http://www.fireplan.gov/community_assist.cfm_) A waiting Documents. Funds went to Nevada Econommic Development Authority.

Potential Bioenergy Resources

While Nevada is not exactly blessed with naturally occurring, highly concentrated

biomass resources, what makes bioenergy conversion project opportunities worth

pursuing in Nevada, is their ability to serve as cost-effective and environmentally-friendly industry alternatives to historical waste management solutions. Other potential feedstocks are Pinyon Pine-Juniper ("P-J") woodlands in the eastern and central part of the state (BLM lands in White Pine and Lincoln counties), harvested overstocked and diseased trees located in and around the Lake Tahoe basin, and damaged wood shipping pallets discarded by the Reno and Las Vegas warehousing industries.

April 7, 2000

MINUTES OF THE MEETING OF THE LEGISLATIVE COMMITTEE ON PUBLIC LANDS

· Piñion Juniper Harvest: NTS Development Corporation intends to harvest Piñion Juniper for manufacture into wood chips and other timber-based consumer goods. He expressed appreciation regarding the actions of Gene Kolkman in facilitating meetings with United States Senator Harry Reids staff to reach this goal;

Annual Report 2000 and Tax Return- Rocky Mountain Elk Foundation

WITH STATE WILDLIFE AND FEDERAL LAND MANAGERS TO ACQUIRE, MANAGE AND ENHANCE HABITAT TO BENEFIT ELK AND OTHER WILDLIFE $16,621,633 (expenses)

In the 2000 anual report, page 8, .pdf format

Chained and seeded dense pinyon juniper stands on public lands in Lincoln and White Pine counties and treated public lands in Nye County with prescribed fire to improve wildlife habitat and livestock forage

MARCH 27, 2001

Mike L. Baughman, Representative, NTS Development Corporation (NTS), City of Caliente, Eureka County and Lincoln County, testified the areas he represented supported A.B. 418. Lincoln County, NTS and the City of Caliente had been working cooperatively for the past couple of years to develop alternative energy projects in that area.

The NTS Development Corporation was organized to create employment and income on and around the Nevada Test Site to make up for the many thousands of jobs that were lost when weaponstesting was stopped in the area. They currently had some very aggressive programs, including a 260-megawatt wind energy project on the Nevada Test Site. He stated the committee could recall there was an announcement several months ago with Senator Reid and others covering the agreements to provide the land area for the project. In addition, NTS was working with Lincoln County to develop an industrial park in Caliente, Nevada, and working with the BLM to develop a biomass energy project that would be located in the county.

The biomass would be derived from pinion juniper woodlands. The BLM was in the process of preparing a very long-term landscape management plan that would allow the BLM to selectively harvest and thin the pinion juniper woodlands in the eastern part of the state to provide for better habitat for wildlife, watershed and help abate the serious fire hazard that existed. Mr. Baughman stated his organizations looked forward to working with the BLM to actually take the resulting biomass from that area and put it into productive industrial uses including the production of energy. He stated they were looking at small modular plants up to five megawatts and one would be located in Lincoln County. Eureka County had operating geothermal plants in the Beowawe area. They were hoping the facilities could continue to operate and expand in the future and were interested in the bill to expand renewable resources in Nevada. From a local government perspective, he assured the committee the counties were very interested in the location of the renewable energy resources projects in their areas. The projects would help to diversify the local economies and perhaps provide a local supply of energy that would help to then attract industry to the areas. http://www.leg.state.nv.us/71st/Minutes/Assembly/ENR/Final/744.html

April 5, 2001

Mike L. Baughman, Ph.D., Nevada Test Site Development Corporation (NTSDC),

. The Bureau of Land Management (BLM) had proposed to thin Pinyon-Juniper woodlands in White Pine and Lincoln Counties through selective harvest. The thousands of tons of biomass produced would provide energy comparable to coal (Exhibit K). The bill needed a sunset clause because five years was sufficient to attract new businesses. They were concerned about the Commission on Economic Development approving or denying tax exemptions that did not meet the initial criteria but were in the best interest of the state. They felt "undue uncertainty" should not be present in a program that was clearly designed to benefit Nevada. http://www.leg.state.nv.us/71st/Minutes/Assembly/TAX/Final/760.html

May 8, 2001

ASSEMBLY Committee on Taxation

Mr. Bierman referred to his document, Exhibit H. His map indicated some of the projects under consideration in rural Nevada involving the Bureau of Land Managements (BLM) clearing of pinon-juniper. Mr. Bierman communicated that much of Nevadas rural energy potential was located in rural Nevada. S.B. 227 would greatly assist the efforts of Nevadas rural counties "to diversify and expand their economies."

Mr. Bierman proposed that S.B. 227 would help stabilize energy prices. He explained that rising electrical rates threatened many agricultural producers in rural Nevada, especially those who pumped groundwater for irrigation. Alfalfa hay producers in Lincoln, Eureka, and Lander Counties could be affected significantly. He predicted "locally available competitive energy sources could both lend stability to energy costs and provide employment and income to rural residents."

Mr. Bierman added that extensive geothermal resources existed in Eureka and Lander Counties, particularly in the Beowawe area. Lincoln County and the city of Caliente were cooperating with the Nevada Test Site Development Corporation, to develop industrial parks in Caliente and Alamo. In Lincoln and White Pine Counties, the BLM was developing plans to thin an estimated four million acres of pinon-juniper woodlands, where "thousands of tons of biomass" would result in the landscape treatments being proposed by the BLM. Each ton of pinon-juniper biomass contained between 12,000 and 15,000 Btus (British thermal units) of energy, which was comparable to coal.http://www.leg.state.nv.us/71st/Minutes/Assembly/TAX/Final/1325.html

June 21 2001 RAC Meeting

Selby asked how long it would take to treat the 20,000 acres. Kolkman replied 3 to 4 years, as they hope to treat about 8 to 10 acres per day. The question was raised about the wood by-product (biomass). Kolkman answered that some businesses such as the City of Ely and the Ely Shoshone are interested. The wood would be given to these businesses. Some mines have been experimenting with biomass and sludge to produce top soil. Two power plants that are interested in building in Lincoln and White Pine counties just issued aNotice of Intent on June 13. The question was raised about the wood by-product (biomass). Kolkman answered that some businesses such as the City of Ely and the Ely Shoshone are interested. The wood would be given to these businesses.

July 31, 2001 - Hartzell Testimony to Congress

Eastern Nevada Landscape Restoration Coalition project, Ely, NV, producing biomass material. The BLM Ely District in eastern Nevada has committed to produce 50,000 to 100,000 tons per year of pinyon-juniper biomass to restore and improve habitat for sage grouse and Rocky Mountain elk. The project will treat over 100,000 acres in FY 2001. The coalition involves 75 Federal, State, and local governments, private foundations and environmental groups, and local community and industry leaders. The coalition is exploring markets for the biomass material, including fuel for wood-stove pellets, bioenergy or co-generation, fiber or flakeboard and a variety of other nontraditional forest products http://resourcescommittee.house.gov/107cong/forests/2001july31/hartz

ell.htm

July 2001 Dunn Memo To

... PJ will be thinned to increase herbaceous and grass

components, and initially biomass will be chipped and left on site ...

Biomass may be used to fuel a co-generation plant, or used for other

products, in the future, in support of government initatives".

HARD COPY ONLY FOIA- CIHD

August 2001 ELY/MT. Wilson - Bidder Key Dates - Downloaded BLM Web Site

August 3, 2001 Contract specifications available to bidders

August 8, 2001 Bidders tour

August 16, 2001 Bids due by close of business (4:30 p.m. PDST)

August 18, 2001 ** Public Comment Period Ends (

August 18, 2001 Contract award

August 23, 2001 Work begins

12/19/2001

FY 2002 Budget Justification US Department of the Interior and USDA Forest Service NFP_final_32601 (This is the name of the .pdf where this inforamation comes from

Economic Action Programs - A FS program providing funds to work with local communities to identify, develop and expand economic opportunities related to historically underutilized species, and wood removed through hazardous fuel reduction treatments. Information, demonstrations, application development and training will be made available to participating communities. Support is also provided for community-led planning and prevention to reduce fire risk.

Planned and funded fuel reduction projects treating 3.2 million acres (FS - 1.8 million, DOI - 1.4 million) of Federal land and protecting and providing hazard mitigation on 395,000 acres of private lands. The wildland urban interface (WUI) is a high priority with over 818,000 (FS-509,000 and DOI-309,000) acres planned for treatment. As the year proceeds and costs further refined - especially in the WUI - the amount of treatment acres may be revised. pg4

The Departments will increase project emphasis and concentration in the wildland urban interface (WUI). Within this the focus will be on areas that will achieve the greatest benefit, that is, community protection and ecological restoration. Costs per acre in these areas could be higher than in FY 2001. The FS plans to accomplish a total of 1.8 million acres, 500,000 of which will be in the WUI. The DOI plans to accomplish a total of 1.4 million acres, 300,000 of which will be in the WUI.

2002 URBAN INTERFACE NFP - Funds

Grant Applications for Urban Interface Funds are number in accordance with state priority. In reviewing the top grant application for Urban Interface Funds for the fiscal year 2002, one should remember that instruction on the application define Urban as: "The development density for an interface condition is usually more than 3 structures per acre." These are the top 3 priority projects for the State of Nevada.

PRIORITY 1 Glenbrook Project 400 Homes $586,395 NFP $1,172,790 Total Funds

Glenbrook is an exclusive Lake Tahoe subdivision. Community information on the internet reports: Of the 730 acres comprising Glenbrook, approximately 150 have been developed. Nearly 600 acres remain undisturbed, offering homeowners a number of unique recreational opportunities. This quiet area includes more than 1/2 mile of private sandy beach, acres of meadowland, tennis courts, a private pier, and a nine-hole golf course. However, this source reports 275 homes with prices ranging from $725,000 to $7,000,000. UI Grant funds are for planning and the purchase of a Bobcat and barrel chipper . My math 730 acres \ 400 homes = 1 home per 1.825 acres. This is part of the Tahoe "Green Energy Program", a well documented biomass energy model.

Priority 2 Mt. Wilson 50 Homes 22,000 Acres* $40,000 NFP $80,000 Total Funds

Mount Wilson is a exceptionally remote area in Central Nevada, the treatment area figure is derived from the Environmental Assessment. Approx. 35 square miles, to protect 1.2 square mile private land enclave.BLM's project design actually leaves higher densities of trees touching private lands than in many other portions of the project areas. So, the "interface" has become a beauty strip. The NFP grant funds are to be used for a risk assessment. This is an Eastern Landscape Restoration Project.

Priority 3 Ely Application Shows 2,500 homes 9,400 acres $70,000 NFP $140,000 Total Funds

The Ely project treats outlying surrounding areas with exceptionally low population densities. It extends south from Ely approx. 13 miles - in a 1 to 1.5 mile wide swath. Habitation is present only in the very northern portion of project area. Again, the trees are left touching private land, leaving a beautification strip. The grant funds are used for risk assessement. This is an Eastern Landscape Restoration Project.

Nation Fire Plan Grant - Economic Development Fund- Nevada FY 2001 $200,000 and FYI 2002 ($190,000) Ended up in the hands of Carl Delane from the Nevada State Commission on Economic Development. It is out in RFP as a feasibility study. It project is specefically targeted at Eastern Nevada BLM Restoration areas. However, the Eastern Nevada Landscape Coalition sent a letter saying they would not seek the funds, however other community organizations were interested. However, Bob Abbey informed them at a public lands management meeting last month that a full EIS had to be done,as there was concern that the soil ph would change if they just left the chips on the ground, and that a vegitative inventory needed to be done. Another segement of the money under a different classification $260,000. went to the biomass pilot project in Lake Tahoe. That is years in the making, and a very well developed

Thursday, November 29, 2001

http://www.nmagriculture.org/meeting_pushes.htm

Representatives of the biomass industry said their work presents a solution to the accumulation of thickets of brush and small trees in national forests, which fuel catastrophic wildfires. Biomass companies take the small trees and brush from forest thinning, which might not have another commercial use, and burn them to produce electricity.

"The question is not simply what public lands can do for renewable energy, but what biomass can do for public lands," said William Carlson, vice president of the Renewable Energy Division of Wheelabrator Environmental Systems.

Carlson said that with biomass energy, whole forests could be thinned with no cost to the federal government.

But Carlson said the industry needs a tax credit to jump-start more operations. And he said that for stability, the industry needs long-term contracts on public lands that the federal government has not been willing to give.

Norton said that her department will compile suggestions from the companies at the conference and present formal proposals early next year.

 

RCI Biomass Project List - cached google, no date

1. RCI was retained by the ARS and the Community of Burns, OR to develop and present a program to the community on wood biomass energy/wood product development opportunities. There is much community interest in new opportunities in economic development due to recent closure of a major industry at Burns. The community feel that an opportunity exists in harvest and productive use of the excess Western juniper biomass in the region.

Lincoln County

(Biomass)

Lincoln County Economic Development / Nevada Association of Counties

RCI was involved in securing funds from the Nevada Legislature to assist in carrying out a statewide scoping study regarding treatments and uses of the Pinion-Juniper Woodlands in Southeastern Nevada. In this study, RCI focused on methods presently being employed by BLM to address the management issues of these woodlands, and what the future potential opportunities include to achieve desired plant community. Energy and wood product development were identified as high potential outcomes, as the woodlands are managed on a sustainable / renewable basis.

The Glenbrook Community Project

(Biomass)

RCI is retained to assist this Lake Tahoe nonprofit group in planning for and managing a project directed toward removing dead timber surrounding the community and presently presenting a severe fire threat to the private homes and also the clarity of Lake Tahoe. Excess wood biomass will be removed and transported from the basin to be used for productive purposes such as energy.

The Sugarpine Project

(Biomass)

RCI has been retained to assist this nonprofit organization in securing funds and developing plans to address the most severe fire threat from dead and dying timber in the Lake Tahoe Basin. Funding applications have been successful and a coordinated effort that includes TRPA, USFS, NDF, and others is underway to remove the wood biomass from the basin to useful purposes such as energy. The risks associated with this problem included an exclusive housing area, watershed values, and the clarity of Lake Tahoe itself. The Governor of Nevada, US Forest Service Chief, and scientists have visited this project and declared it a priority.

Western Juniper

(Biomass)

RCI developed an overview document on behalf of the North Cal-Neva Resource Conservation & Development Council (NC-NRC&D) to outline an approch for addressing large scale inventory and treatment of identified problem stands of excess Western juniper woodlands existing within several million acres. A report recommended development of a Western Juniper management strategy to serve as a prototype for all juniper communities in the region

John McClain, Principal, Resource Concepts, Inc., Carson City, provided the Committee with an overview of the Lincoln County PinionJuniper Harvest Project, as follows:

1. · An extended period of fire suppression and non-harvest resulted in loss of forage, habitat, and watershed, which has created unnatural conditions.

· There are 11 million acres of Pinion-Juniper woodlands in Nevada.

· The Pinion-Juniper have the following values:

Ø Aesthetic;

Ø Biomass;

Ø Cultural;

Ø Pine nut gathering;

Ø Watershed protection; and

Ø Wildlife habitat.

· The current environmental conditions created by Pinion-Juniper include:

Ø Existence of a fire hazard;

Ø High management cost to the public;

Ø Negative impacts of runoff;

Ø Reduction of understory vegetation;

Ø Reduction of wildlife habitat; and

Ø Vulnerability to invasive species.

Mr. McClain explained the management strategies for Pinion-Juniper include: (1) burning; (2) chaining; (3) commercial thinning (biomass harvest); and (4) high grading (fence posts, firewood gathering, and pine nut harvesting). He provided detailed information regarding management strategies, as follows:

· Burning Pinion-Juniper can cause the following:

Ø Air quality concerns;

Ø Unsuitable conditions for reseeding;

Ø Diminished useable biomass;

Ø Greater potential for invasive species;

Ø Release of understory species;

Ø Short term viewscape impact; and

Ø Temporary period of nonuse.

· Chaining Pinion-Juniper causes the following:

Ø Cost to the public;

Ø Harsh mechanical treatment;

Ø Loss of useable biomass;

Ø Potential for invasive species;

Ø Provides conditions for reseeding;

Ø Release of understory species;

Ø Short term viewscape impact; and

Ø Temporary period of nonuse.

· Commercial thinning (biomass harvest) of Pinion-Juniper provides the following:

Ø Creates conditions for healthy burns;

Ø Enhances watershed conditions;

Ø Improves understory vegetation;

Ø Improves wildlife habitat;

Ø Provides minimal visual impact

Ø Reduces potential catastrophic fires; and

Ø Sustains healthy woodlands.

Continuing his discussion, Mr. McClain focused his comments on biomass harvest, which is a new approach to resource management, is sustainable, and is a source of renewable energy and wood products. Biomass uses include:

· Wood blended products;

· Wood distillation;

· Wood energy; and

· Wood products.

Mr. McClain explained that wood hybrid power is coming back on-line. Some generation facilities utilize wood hybrid power exclusively and others operate cogeneration facilities. The energy produced by Pinion-Juniper equated 9,000 British thermal units (BTUs) per pound, compared to the following:

· 8,000 BTUs per pound poplar wood chips; and

· 10,498 BTUs per pound coal.

Additionally, there are potential institutional changes through the reemphasis on use of biomass to:

· Reduce fossil fuel consumption and foreign energy dependence;

· Reduce greenhouse effect; and

· Restore natural vegetation conditions.

The U.S. Department of Energy is interested in the use of biomass harvesting to:

· Help achieve national energy strategic goals

· Increase economic viability of rural areas;

· Provide an alternative energy source; and

· Reduce agriculture and urban waste.

Further, assistance opportunities for biomass production are available through:

· The U.S. Department of Agriculture;

· The U.S. Department of Commerce;

· The U.S. Department of Energy;

· The U.S. Department of the Interior;

· The Nevada Commission on Economic Development; and

· The Nevada State Energy Office, Department of Business and Industry.

In conclusion, Mr. McClain explained that Lincoln County has encouraged U.S. Senator Harry Reid (D-NV) to secure funding to conduct an inventory to determine the feasibility of commercial thinning in the county. Mr. McClain requested the Committee support this effort.

In response to Assemblyman Collins, Mr. McClain provided the following comparisons with regard to pollutants emitted by burning Pinion-Juniper:

· Particulate release:

Ø Wildfire 17 pounds per ton;

Ø Prescribed burn 40 pounds per ton; and

Ø Electric generation facility 0.13 per ton.

· Carbon monoxide release:

Ø Wildfire 140 pounds per ton;

Ø Prescribed burn 252 pounds per ton; and

Ø Electric generation facility 3.2 per ton.

Briefing of Vidler Water Company and Nevada Land and Resource Company Projects in Lincoln and White Pine Counties

Stephen D. Hartman

Stephen D. Hartman, General Counsel, Carson City, explained that Nevada Land and Resource Company is Nevadas largest private landowner and holds the checkerboard pattern along the Innerstate-80 corridor.

Dorothy Timian-Palmer

In response to an inquiry from Chairman Rhoads, Dorothy Timian-Palmer, Chief Operating Officer, Vidler Water and Nevada Land and Resource Companies, explained PICO Holdings, Inc. has owned both entities for approximately five years. She further responded by noting over the past four years, PICO Holdings reduced its property holdings in the state of Nevada by 200,000 acres and now owns approximately 1.1 million acres.

Mr. Hartman provided a general overview of Nevada Land and Resource Companys activities in Nevada. He noted there are many uses for the Companys land, including opportunities for: (1) grazing; (2) industry; (3) pipelines; and (4) telecommunications. Mr. Hartman explained the company has communicated with all governmental agencies situated along the Innerstate-80 corridor in an effort to understand what the agencies would like economically, and to determine how the company can assist in achieving these goals. The companys largest recent effort has been working with the BLM to consolidate the checkerboard pattern because it is a tremendous burden from an expense standpoint for the BLM and private property owners. With regard to this effort, significant progress has been made in Pershing County where 600,000 acres have been acquired. Additionally, a number of exchanges are being conducted, including one in Washoe County, which will be utilized to assist Lincoln County with a project.

Turning to Vidler Water Company, Ms. Timian-Palmer discussed some of the companys holdings and projects. Vidler owns the Fish Springs Ranch, located near Reno. The company operates the ranch, which runs cattle and produces 6,000 tons of hay annually. Vidler is working with Washoe County to deliver water from the ranch to the Reno area. The company also owns the Big Springs Ranch, located near Wendover. The water from this ranch has been designated for the City of West Wendover and the two entities are developing a pricing scenario to meet everyones needs. Additionally, power generation facility developers are interested in utilizing water from the Big Springs Ranch.

Another Vidler project is a partnership with Lincoln County wherein the two entities file jointly for water resources in an effort to enhance economic development in the county. A project currently underway is the Toquop Energy Project in the Tule Desert. The developer, Cogentrics, has paid $180,000 in option money to Lincoln County and would like to finalize the deal within nine months. To date, three monitoring holes and one production hole have been drilled. Approximately 7,000 acre-feet of water would be used annually to produce 1,100 MW of power.

Mr. Hartman noted the development of this water asset would contribute to Lincoln Countys master plan and all water would be utilized solely in the county.

In response to Assemblyman Neighbors, Ms. Timian-Palmer explained the City of Primm contacted Vidler to seek additional water sources for casino, housing, and shopping developments. The company found what it asserts is unappropriated water in Sandy Valley and filed for 2,000 acre-feet on behalf of Primm. The only protest to the filing was from domestic well owners in Sandy Valley.

Discussion ensued and Ms. Timian-Palmer clarified Vidler is a water development company that assists entities in obtaining needed water. With regard to the Tule Desert project, when the power generation facility no longer requires use of the water, the rights return to Lincoln County, not Vidler. The same is true for the Primm project.

Mr. Hartman provided a letter to the White Pine County Board of Commissioners, from Mr. Hartman dated September 4, 2001. It clarifies the companys intent to expand the agricultural activities of the Spring Valley Ranch located in White Pine County (Exhibit D).

Status of the Lincoln County Land Act of 2000 (Public Law 106-298)

Dated November 12, 2002 - Carson City Manager’s Report

 Biomass — Attended a regional meeting organized by the State Energy Office to present our efforts to date.

1. Held a telephone conversation with Elwood Miller of the Fire Safe Council, John McClain of Resource Concepts Inc. (RCI) and John Singlaub of the Bureau of Land Management (BLM) to discuss the status of the Council's completion of a study to determine the availability of biomass fuels for the next 10 years within a 50-mile radius of Carson City, (you may recall we had proposed doing a similar study which was to be funded by the Forest Service; however our proposal was rejected due to the lack of funding); we also outlined a process whereby the council would facilitate meetings with us and neighboring jurisdictions who have thinning projects underway to arrange for our landfill to begin to receive product from these projects; and, Mr. Singlaub agreed to purse federal funding to underwrite the cost of processing biomass material at these various projects to reduce the cost of transportation.

Met with John Martinson, former University of Nevada Reno (UNR) professor and an activist promoting waste energy and biomass recycling projects.

Held a meeting with Gary Bowen on various regional efforts including our biomass interests.

1. Energy Team Met with the team to receive an update on the Viron project which is complete except for the co-gen facility; discussed the second Request for Proposal (RFP) which is due October 24th; discussed the status of implementing other concepts including:

Dated November 25, 2002

City Manager’s Report

 Energy Team — Met with the team where we received an update on the Viron Phase I project which is complete with the cogen maintenance contract before the Board for approval; Phase II project evaluation almost complete; discussed the status of our biomass work; consultant Carollo report on conservation options due mid-December; and Sierra Pacific Power Company (SPPCo) is almost done reconciling all City accounts.

1. Biomass — Met with John McClain of Resource Concepts Inc. (RCI) and Daren Winkelman to discuss the Request for proposal (RFP) issued by the Fire Safe Council to conduct a regional inventory of product. We agreed that Daren would instruct landfill consultant HDR to work with the Bureau of Land Management (BLM) to layout an area for the receipt, segregation and processing of material. We also committed to a 20% match ($10,000) required by the RFP. The potential benefits to Carson City are substantial and include:

1. Conserving landfill space thus creating capacity and extending its life.

2. Assisting local and regional efforts to reduce wildfire fuels.

3. Several potential economic development opportunities including building products and energy production.

January, 2003

Nevada Southwest Energy Program

1. Early in 2001 it came to the attention of the Governor?s Office that Senator Reid wished to work for an energy funding opportunity for energy research, development and deployment using the Nevada research institutions through an earmark to the Energy and Water Appropriations Bill. Given the passage of the RPS, the support expressed by Senator Ensign, Lieutenant Governor Hunt, Governor Guinn and others, the Senator invited the Governor?s Office to coordinate a response to the earmark. To capitalize on this opportunity the University of Nevada, Reno (UNR), the Desert Research Institute (DRI), the University of Nevada, Las Vegas (UNLV), the Nevada State Office of Energy (NSOE), and the Nevada Test Site Development Corporation (NTSDC), in cooperation with the National Renewable Energy Laboratory (NREL), initiated the Nevada Southwest Energy Program (NSWEP). The program was founded to leverage the research, development and outreach capabilities of its members, the natural resource abundance of Nevada, and the favorable institutional environment created by the RPS legislation to create working renewable and energy efficiency laboratory in Nevada. The program was intended to be unique among DOE funded projects in that it would represent an integrated, cross-functional, cross-technology program that will address the energy production/consumption system as a whole. In directly addressing the importance of having the institutional infrastructure necessary to support the development and deployment of renewable and energy efficiency technologies, this program was intended to provide an opportunity to link the advances in the DOE technology program areas with the implementation of these respective technologies as working models.

The first year of funding for the program was set at $4 million. The NSWEP board decided that NREL should serve as the administrator of a competitive solicitation. Principal investigators at the research institutions in Nevada assembled public and private partnership teams and submitted 34 proposals in response to the solicitation. 9 proposals were identified as the highest priority projects and these 9 projects received, or are in the process of receiving, a total of $3.2 million in grant funding. The projects funded included concentrating solar power projects at UNLV, integrated solar/efficienct building projects at UNLV, a hydrogen energy project at DRI and UNR, a wind mapping project at DRI & UNLV, and a geothermal mapping and exploration project at UNR. Funding for a second year is currently provided for in the Senate version of the Energy and water appropriation.

Rural Outreach Work Group

The rural outreach work group was formed to facilitate the development of renewable energy projects in rural Nevada. The work group was formed after the 2002 Nevada Land Use Summit to follow up on interest expressed at the summit in renewable energy applications. Particular interest was expressed in small wind projects that could defray the expense of irrigation. There was also strong interest expressed in identifying biomass projects that could serve as an alternative source of income for farmers and ranchers. The group is also interested in identifying solar and geothermal applications, but the focus coming out of the summit was on wind and biomass opportunities. The work group meets monthly and the focus is four-fold:

Identify all potential wind, geothermal, biomass and solar projects that are currently being contemplated, planned or developed in rural Nevada;

Identify all potential sources of funding for rural renewable energy projects and invite the participation of Nevada Commission on Economic Development, Nevada Association of Counties, UCCSN Cooperative Extension, USDA rural programs, and other city and county officials so that we can leverage the greatest possible support for projects;

Identify barriers to the development of rural projects and seek to mitigate them; and

Identify promising projects with the goal of getting at least one wind and one biomass project underway in each of northern Nevada and southern Nevada.

To date, individuals have expressed an interest in initiating more than 60 rural renewable energy projects. Out of this 60, ten projects have been identified as being those with the greatest support and greatest probability of success. The focus of NSOE at the present is in funding a ?cooperative extension? type of service to the potential project developers to help in making a business case for the projects.

Biomass Support Activities

1. NSOE assisted inquiry from Sierra Pacific Power Company regarding use of biodiesel in the company?s generators at Lake Tahoe as a means or reducing air emissions and in obtaining credit for renewable energy sales under Nevada?s RPS.

NSOE gave presentations on Nevada?s bioenergy resources and utilization project opportunities to the Renewable Energy and Energy Conservation Task Force in December of 2001, attendees of the ?AgExpo 2002? conference in Fallon in January of 2002, and as a morning plenary panelist at the June, 2002, ASES conference. NSOE staff also gave focused presentations to attendees of the Rural Renewable Energy Outreach Group, staff of the Nevada Commission on Economic Development, Nevada Division of Forestry, and Nevada Fire Safe Council regarding office involvement with use of locally produced forest thinning residues as a feedstock for energy conversion technologies. Pursuit of this concept would provide support of efforts to reduce fire danger in the urban/wildland interface areas of the state through the cost-effective disposal of thinning biomass.

Staff have most recently supported the efforts of the Alternative Energy Working Group created by the Carson City Economic Vitality Coalition. The working group is assessing the value-added opportunities associated with using local forest thinning residues as a building space conditioning or cogeneration fuel for use by the city and/or other energy end users (the state, school district, private industry, etc.).

NSOE has held numerous meetings with Nevada agricultural industry and economic development advocates regarding interest in, and feasibility of, establishing a Nevada ethanol production industry in Winnemucca or other locations in Nevada. To this end, NSOE was successful in obtaining U.S. DOE financial support of a major ethanol conference that was held at the Atlantis Hotel/Casino in Reno on January 9, 2003.