Representations of MEHC and PacifiCorp. Relating to the Expansion of Blundell Geothermal Facility.
(i) MEHC represents that MEHC owns and has the right to convey to PacifiCorp without restriction or limitation, 100% of the stock in the IGC free from encumbrance.
(ii) MEHC represents that IGC has an existing contractual obligation to provide its proportionate share (approximately 70%) of the steam to serve the current Blundell Geothermal plant, which plant is owned and operated by PacifiCorp.
(iii) MEHC represents that IGC owns approximately 70% of the working interests in the geothermal field serving the Blundell Geothermal Plant including appropriate leases and permits to provide steam and can, subject to obtaining necessary agreements of the other working interest holders and governmental agencies expand the field to provide the additional steam resources for the expansion of the Blundell plant as contemplated by this Agreement.
(iv) MEHC represents that by transferring 100% of the stock of IGC to PacifiCorp, the steam from the field as developed which is attributable to the working interest of IGC, and as it may hereafter be developed, can be provided to PacifiCorp at cost rather than market so as to reduce the cost of steam to the Blundell plant, thereby reducing the plant’s operating costs and charges to ratepayers.
(v) PacifiCorp represents that it can expand the capacity of the Blundell steam plant, without degrading existing capacity, as follows:
(A) To add an approximate 11 megawatt heat recovery unit to the existing 25 megawatt geothermal facility at Blundell not later than fourth quarter 2007, as described in paragraph c.(iii), subject to the terms and conditions of this Agreement.
(B) To add an approximate 25 megawatts of new geothermal based generating capacity at Blundell subject to the terms and conditions of this Agreement.
(C) To request that IGC and the other working interest holders drill new xxxxx to recover additional steam for the new 25 megawatt expansion for the potential expansion of PacifiCorp subject to the terms and conditions of this Agreement.
(D) To add an approximate 11 megawatt heat recovery unit to the 25 megawatt new generating units so as to increase the production from that plant subject to the terms and conditions of this Agreement.
(vi) MEHC represents that they prepared in good faith the MEHC Blundell Analysis of the proposed IGC Transaction and expansions at the Blundell geothermal plant and related steam field facility which estimates (1) that the additi...
