| SCPPA negotiated its first purchase
of existing natural gas wells in 2005. This purchase,
along with similar purchases, will provide a secure
source of fuel for the participants, and hedge
against volatile natural gas market prices which
may occur in the future.
The Pinedale Natural Gas Project reserves are
situated in the Pinedale Anticline region, located
in Sublette County, Wyoming.
This Project includes 38 operating oil and gas
wells and associated lateral pipelines, equipment,
permits, rights of way, and easements used in
production.
The natural gas field production is expected
to increase for several more years as additional
capital is invested into the drilling of new wells.
Pinedale Project Participants: Anaheim, Burbank,
Colton, Glendale, Los Angeles, Pasadena, and the
Turlock Irrigation District.
The total cost of the Project was over $300 million
for the initial purchase. Los Angeles and Turlock
hold their interests individually, however SCPPA
provides services for Los Angeles and Turlock
under agency agreements. Anaheim, Burbank, Colton,
Glendale and Pasadena have ownership through SCPPA.
Los Angeles serves as Project Manager for the
overall project.
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