| 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 37
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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