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Wildwood LNG Demonstration Facility 1 . PROJECT TITLE The proposed project is the Wildwood liquefied natural gas (LNG) Demonstration Facility that will be designed and constructed for Applied LNG Technologies (ALT). The facility will be used to demonstrate the feasibility and economics of producing LNG from a low-quality natural gas source. LNG has been shown to be a safe, non-polluting fuel that can be used in a variety of highway vehicles and stationary engines. 2. PROJECT LOCATION The proposed project is located on property owned by the Leonard J. and Gladys R. Vieira Living Trust in a rural portion of San Joaquin County, California on a parcel located in the southeast 1/4 of the southeast '/4 of the southeast 1/a of the northeast '/4, Section 7, Township 1 S, Range 8 East identified as a portion of San Joaquin County APN 203-030-02. The site is located adjacent to Wildwood Road, approximately one mile east of Jack Tone Road. A site map showing the location of the proposed facility is presented as Figure 1. The surrounding land use is generally agricultural including dairy farms with isolated residences. The area contains several oil and/or gas wells. Several photographs of the proposed site are included as Figure 2. The actual demonstration plant will be situated on a plot approximately 100 by 100 feet although the actual area utilized will be somewhat larger to allow for access by LNG transport vehicles. The proposed LNG facility is to be situated approximately one mile from an existing stranded gas well located in the northwest 1/4, Section 17, Township 1 S, Range 8 East that is under lease from the Leonard J. and Gladys R. Vieira Living Trust. Development of the proposed project in the proposed location is compatible and consistent with the General Use Plan of San Joaquin County, and will not require a zoning change. The general area has been used for agriculture and natural gas exploration. 3. PROJECT HISTORY The Project was conceived as a means of developing LNG from alternate sources of natural gas rather than from existing wells that produce high quality gas or from the natural gas pipeline distribution system. Sources that were considered include landfill gas (LFG) and low quality natural gas such as that derived from stranded wells, low-Btu gas wells, and flared gas from petroleum production and refining operations. The proposed demonstration plant will be constructed near a stranded gas well that is the source of a relatively low Btu natural gas that cannot be economically upgraded to "pipeline" quality gas. As such, this fuel resource is unusable. The demonstration plant will produce LNG from AES Construction Group Page 1