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/CPA NORTHERN CALIFORNIA POWER AGENCY 651 Commerce Drive Roseville, CA 95678 (9 16) 781-3636 www.ncpa.com October 10,2008 F.Wally Sandelin,Public Works Director City of Lodi 221 West Pine Street Lodi, CA 95241-1910 Subject: STIG-LEC Facility Underground Injection Well Permit Status Dear Mr.Sandelin: The Northern California Power Agency (NCPA) is currently in the process of re-applying for a permit to continue operating the existing steam injected gas turbine (STIG)-1 injection well.The permit also includes installation of a new well (LEC-1) for the planned Lodi Energy Center (LEC) and a possible backup well (LEC-2) to support both plant wells.These wells,and the electrical generating Combustion Turbine Project#2 (STIG plant),are located on property that NCPA leases from the City of Lodi.NCPA has submitted an Application for Certification for a second power plant,the LEC,to be located immediately adjacent to the STIG plant.The two power plants are located in a complex that also includes the City's White Slough Water Pollution Control Facility. STIG-1 was installed in 1993 and has operated efficiently and effectively since it began routine operation 2000.Therefore,as part of the planned operation of the LEC facility,installation of a second Class I injection well is planned. The underground injection control (UIC) permit application will be submitted to the United States Environmental Protection Agency next week. The permitting process requires an estimation of the distance the injected fluid has penetrated and is expected to penetrate over the life of the facility. To date,approximately 71.5 million gallons have been injected at the STIG-1 well into the Domengine Formation.The Domengine Formation is a sandstone that has produced gas in the region and has well-defined confining units above and below to contain the injected fluid within it. It is estimated that the 71.5 million gallons of injected fluid has migrated approximately 160 feet away from the well head. With the proposed maximum injection rates of 200 gpm at the STIG-1 well and 225 gpm at the LEC-1 or LEC-2 wells,fluid migration will be an additional 950 feet after 10 years and less than 1,800 feet after 30 years. Fluid migration would remain beneath city property. NCPA appreciates the relationship between our power facilities and the White Slough Water Pollution Control Facility.We currently anticipate the LEC-1 well will be drilled and tested in the fourth quarter of 2009,prior to initiating construction at the Lodi Energy Center. As the Application for Certification process continues with the California Energy Commission,and we have a better understanding of the schedule,we will keep the City informed as to the timing of the drilling and construction at the site.