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 In 2006, SCPPA members purchased natural gas reserve in the State of Texas. The purchased assets are located in one of the most active and largest natural gas fields in North America, the Newark East Field targeting the prolific Barnett Shale Formation.
The acquisition by SCPPA and Turlock Irrigation District is expected to yield approximately 67 billion cubic feet of equivalent proven reserves.
The operator of the properties will be Devon Energy Corporation. Devon is by far the largest acreage holder and producer in the Barnett Shale, and at the time of purchase, had over 22 drilling rigs operating in the field.
Barnett Project Participants: Anaheim, Burbank, Colton, Pasadena, and the Turlock Irrigation District. (Turlock holds its interest individually.) Anaheim, Burbank, Colton and Pasadena have ownership through SCPPA.
SCPPA participants are expected to use the majority of the natural gas for the new 300 Megawatt SCPPA Magnolia Power Project located in Burbank as well as other local generating plants within their cities.
For economic, environmental, and reliability reasons, SCPPA members have invested heavily in base-load natural gas generation. This acquisition helps ensure the firm delivery of natural gas at stable prices – in a highly volatile natural gas market. This initiative will further enhance the participants' ability to achieve its goal of maintaining stable retail electric rates for their customers.
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