The URL can be used to link to this page

Browse Search

Home My WebLink About20020156 MONICA Mika - Oil and Gas Language Page 1 From: Kim Ogle To: Monica Mika Date: 11/6/01 8:43AM Subject: Oil and Gas Language Section 22-5-100.A of the Weld County Code states "oil and gas exploration and production should occur in a manner which minimizes the impact to agricultural uses and the environment and reduces the conflicts between mineral development and current and future surface uses." Section 22-5-100.B of the Weld County Code states "...encourage cooperation, coordination and communication between the surface owner and the mineral owner/operators of either the surface or the mineral estate." Finally, Section 22-5-100.B.1 of the Weld County Code states "new development should be planned to take into account current and future oil and gas drilling activity to the extent oil and gas development can reasonably be anticipated." The applicant shall either submit a copy of an agreement with the property's mineral owner/operators stipulating that the oil and gas activities have been adequately incorporated into the design of the site or show evidence that an adequate attempt has been made to mitigate the concerns of the mineral owner/operators. The plat shall be amended to include any possible future drilling sites. (Department of Planning Services) Kim Ogle Planner III Weld County Department of Planning 970 353 6100 x 3540 970 304 6498 facsimile kogle@co.weld.co.us EXHIBIT lest'#1339 xDo 1-O/Sl, Weld County Planning Dept. November 1 , 2001 yV 0 6 2001 RECEIVED Weld County Planning Commission Weld County Board of County Commissioners 1555 N. 17th Ave . Greeley, Co. 80631 Dear Commissioners : Please make note of my comments for record concerning the Rocky Mountain Energy Center. I support Calpine ' s USR application and encourage you to approve their project on November 6th. I have visited with Calpine representatives and am impressed with their plans . I am confident that they have considered this project from every angle : environmental , architectural , economic, safety, water , traffic, etc . It ' s clear to me they are putting a lot of effort into keeping the residents of the Hudson/Keenesburg area up to date on their project . They have been very responsive to questions raised . From my perspective this plant will turn out to be a real gain for Weld County, not just in terms of added tax revenue, but the ever-increasing need for power across Colorado . Again, I support this project and urge you to approve their request . Sincerely, it , � 3�L Homer Grinde 5322 WCR 51 Keenesburg, Co. 80643 EXHIBIT F' t.Ls2 1339 Rocky Mountain Energy Center, LLC 26 West Dry Creek Circle, Suite 600 nePtLittleton, Colorado 80120 Weld County Planning ..,r 0 6 2001 November 5, 2001 RECEIVED VIA U.S. MAIL Department of Planning Services Attention: Ms. Monica Daniels-Mika 1555 North Seventeenth Avenue Greeley, Colorado 80631 RE: Rocky Mountain Energy Center, LLC - Conservation Easement Dear Ms. Daniels-Mika: Rocky Mountain Energy Center, LLC ("RMEC") filed its initial Application for Use by Special Review ("Application") relating to its proposed power generation facility near Hudson, Colorado on May 15, 2001. In its Application, RMEC seeks a Use by Special Review Permit for development of 88 acres ("Power Plant Site") of a 633 acre parcel ("Property"). As stated in its Application, RMEC has sited the power generation facility within the Power Plant Site in a manner which permits the RMEC to maximize the preservation of the current agricultural use of a significant portion of the Property. See Sections 2-5 of the Application. RMEC currently plans to ensure the preservation of the agricultural use through the placement of a conservation easement on over 400 acres of the Property (approximately two thirds of the total acreage of the Property). RMEC desires to impose a conservation easement to preserve the agricultural use of the property because it shares the community's desire to preserve the agricultural heritage of the community and wants to do its part by conserving agricultural land for this purpose. Since its selection of the Property and independent of the Weld County land use approval process, RMEC has planned to place a conservation easement on a significant portion of the 633 acre parcel. RMEC needs only a portion of the Property for development purposes. The Property is currently used and zoned for agriculture. Through its placement of a conservation easement on over 400 acres of the Property, RMEC will guarantee in perpetuity agricultural use on such acreage. RMEC believes the placement of a conservation easement on a portion of the Property is the most effective way to preserve the agricultural heritage of Weld County, consistent with the Weld County Comprehensive Plan. I: EXHIBIT use ti 33fl Please let me know if you have any questions or need any additional information on RMEC's conservation easement relating to the Property. Sincerely, !s� David D. Perkins Director- Project Development Rocky Mountain Energy Center, LLC 2867333_2.DOC ES-2 °Wing as wed Town of Kersey e9 Come grow with us I QeQ 11-7-01 \C‘ KERSEY e ��.6 ,_ - ® j 332 Third Street Monica Mika �Cao 'mss, P.O. Box 657 Weld County Planning Department `��e� . V Kersey, Co 80644 1555 N. 17th Ave. Greeley, CO 80631 If" phone: (970) 353-1681 fax: (970) 353-2197 Dear Monica, The Town of Kersey Planning and Zoning Commission has reviewed Referral USR- 1339, and have made the motion to reserve comment until more information is available on the well site. The following are some of the concerns of the Commissioners: 1) Environmental impact of the site. 2) Effect on local ground water. 3) Effect on ground water levels, and future effect on down stream users. 4) Will usage drawn from this Aquifer effect the Towns ability to draw water from the same Aquifer for similar, or industrial use. We ask that the Weld County Commissioners take our concerns into consideration, and consult further with the Town before taking action on any final decisions. Thank you, / `2l/7 Michael E. Hager Town Manager 1 EXIUBIT F'F USC#1339 Tuesday, November 06,2001 11:46 AM To:Weld County Planning Office From:Aguero, Page'1 of 1 Lee and Pam Aguero Box 577 Hudson, CO 80642 November 6, 2001 Dear Planning Board, My husband and I are opposed to the Hudson site for the proposed power plant. We feel that the plant should be moved away from the higher population densities of Hudson and Keenesburg because: • Potential safety problems on two major highways(76 and 52) stemming from the steam and/or ice created from the plant. • Lowered property values-no one wants to look at all the lines etc. • Adverse health risks of extremely high electro-magnetic fields from the power lines. • Adverse health effects of the increased pollution. We feel a location further northeast of Hudson not adjacent to a major interstate and with a lower population would be a better choice for Weld County. Thank you, Rocky Mountain Energy Center, LLC 26 West Dry Creek Circle, Suite 600 Littleton, Colorado 80120 December 11, 2001 VIA HAND DELIVERY Department of Planning Services Attention: Ms. Monica Daniels-Mika 1555 North Seventeenth Avenue Greeley, Colorado 80631 RE: Rocky Mountain Energy Center, LLC - Case Maps Dear Ms. Daniels-Mika: At the Weld County Planning Commission hearing on November 6, 2001, Rocky Mountain Energy Center, LLC ("RMEC") agreed to re-submit to the Department of Planning Services a complete set of case maps, labeled appropriately. RMEC's submission of the case maps was a prerequisite to the scheduling of a hearing before the Board of County Commissioners relating to RMEC's Application for Use by Special Review. RMEC encloses eight (8) complete sets of the requested case maps and a related index. The plats of the Power Plant Site and Wellfield Site meet the requested scale requirements of 1":100'. Please let me know if you have any questions. RMEC appreciates your continuing assistance with these matters. Sincerely, ��/ _�zi Fcr O�Ve /bfki, • David Perkins Director- Project Development Rocky Mountain Energy Center, LLC Attachments 2881391_1.DOC i EXHIBIT L.k e#1339 -I I 11 r . C'.' - -- I I iI h� Well Field Site NZ , I I A' I [Greeley I`, F H IIIL I III _ , Kersey _ _ y III 'III ' ', ' lt I , ' � jI '' 411 I R �r r South Y1 e � 4r , „, �_. . _.ik �.- /� 1 I 0 I / 85 I / / II I • / I I II /// I/ I I I II II,II Platteville - II I 1} _ I • 5.Ar.... A Existing CIG Gas Mainline I Keenesburg / I HGas Interconnection Point a; ---` I • Fort' Lupton /, I• Power Plant Site I L Hudson " Legend WdE Rocky Mountain Facilities Property Boundary Energy Center s Gas Pipeline o 1 2 3 Miles ' .... Water Pipeline Project Location Source: USGS 1:100,000 Greeley Topographic DRG. Figure 2-1 _ �- — Well Field Site[I- - i:1 - Greeley TIN 7 _ '� I �j _ s ' - r "I �� II I iC �� j Y / - — f i / I • I ,r 1 I I l!I f -� I II Platteville r' i I I L^i Existing CIG Gas Mainline _:. I II I' 1 L enesburg Ii ' �� Gas Interconnection Point - - ' k1r. - ll -L ' — '1 Power Plant Site rHudson Allill I r i G y N Legend W E - Rocky Mountain Facilities Agriculture Energy Center s Property Boundary [4-4 f J commercial 0 1 2 3 Miles Gas Pipeline Industrial Pe Land Use milma Water Pipeline Residential Source: USGS 1:100,000 Greeley Topographic DRG. Rural Residential Figure 5-1 , __ I A\ T L I Well Field Site I Greele yl , I — tlils Kersey I f — //,'Ill �� 11 ! o ec y r ylad it Iii, I 85 —_ I / f O L I Ill Platteville I ✓ f I . \\I -r., Vii I i, i Existing CIG Gas Mainline N - Y g - I Keenesburg } I Gas Interconnection PointIlla s: 0 Fortl I Power Plant Site Lupton \ } Hudson f N Legend WE Facilities Study Area Property Boundary Rocky Mountain `f11' isoll Preferred Water Pipeline Route Energy Center s - - -0 1 2 3 Miles Alternative Water Pipeline Route Pipeline Study Area Imimilli Preferred Gas Pipeline Route Alternatives and Preferred Routes Alternative Gas Pipeline Route Source: USGS 1:100,000 Greeley Topographic DRG. Figure 5-2 Rocky Mountain Energy Center Volume I Map Set Submitted to: Weld County By: Rocky Mountain Energy Center, LLC 6700 Koll Center Parkway, Suite 200 Contents Map 1 Figure 2-1: Project Location Map 2 Figure 5-1: Land Use Map 3 Figure 5-2: Pipeline Study Area Alternatives and Preferred Routes Map 4 Well Field Vicinity Map Map 5 Power Plant Vicinity Map Map 6 Well Field Site Conceptual Site Plan Submittal Map 7 Power Plant Site Plan Submittal Map 8 Sheet 1 of 2: Water Pipeline Preferred and Alternative Routes Map 9 Sheet 2 of 2:Water Pipeline Preferred and Alternative Routes Map 10 Gas Pipeline Preferred and Alternative Routes Map 11 Water and Gas Pipelines Preferred and Alternative Routes apS 27— // nAe os24 ouicf (int 5'exkiyardi . LS2, o urlal I 01/04/2002 12:19 FAX 303 295 8261 HOLLAND & HART LLP @002 HOLLAND & HART LLP ATTORNEYS AT LAW DENVER•ASPEN SUITE 3200 TELEPHONE(30 295-8000 BOULDER•COLORADO SPRINGS 555 SEVENTEENTH STREET FACSIMILE(503) 95.8241 DENVER TECH CENTER DENVER,COLORADO 80202.8979 BILLINGS.BOISE MAILING ADDRESS Elizabeth i•. Mitchell CHETENNE•JACKSON HOLE P.D.BOX VTa9 (303)296-826 SALT LAKE CITY-SANTA FE DENVER,COLORADO 80201-VA9 (303)975-544 ,Fax WASHINGTON,D.C. amhch&leol:ndharl.com January 4, 2002 VIA FACSIMILE Ms. Esther Gesick Deputy Clerk Weld County Board of County Commissioners 915 10th Street Greeley, Colorado 80631 Re: Rocky Mountain Energy Center, LLC - Case No. USR-1339 Dear Ms. Gesick: I write on behalf of Rocky Mountain Energy Center, LLC ("RME:;"). It is RMEC's understanding that the Weld County Board of County Commissioners has scheduled a hearing on February 6, 2002 relating to RMEC's application for a Use by Special Review Permit, Case No. USB 1339. RMEC does not object to the February 6, 2002 hearing date which is be! )nd the period specified in Weld Code § 23-2-230(A)(1). Please contact me if you have any questions. Sincerely,E iza h A. Mitchell for oil Dike/ _ a nd & Bart LLP EAM:crc cc: David D. Perkins I EXHIBIT c Use*#IS39 f-70 0• ir/ 3 YS- I t gen--t„/ a?iOO .Z. rl/c /v ' 014a : eizze4i—cIack 4 / ✓ s/ U.) /ki ' - mat �v w UUU 4.2t-7 .CGr ?-cAf favc-e-e (0‘,47",e,„,/ :2,7t,w,te ffet, ga P -/-4 P.F7 - ' 2' - - A -P-cc de 4. EXHIBIT CCU N uS2 339 r BOARD OF COUNTY COMMISSIONERS PHONE (970) 336-7204, Ext. 4200 FAX: (970) 352-0242 "ligP. O. BOX 758 C. GREELEY, COLORADO 80632 COLORADO January 16, 2002 JAKE GRATTAN P 0 BOX 345 KEENESBURG, CO 80643 RE: Calpine Power Plant Dear Mr. Grattan: Thank you for your letter regarding the Calpine Power Plant hearing. Your letter has been entered as an exhibit to the file to allow all the Commissioners the opportunity to review it. I have also sent a copy to the Planner in charge of the case to address the traffic problems. I have enclosed a notice of the public hearing which will be held on February 6, 2002 at 10:00 a.m.. You are invited to make your comments at that time. As a Commissioner, I can not review the file or the facts of the case with you until the public hearing. If you have questions or need additional information, please do not hesitate to contact me at (970) 336-7204, Extension 4200. Very truly yours, WELD COUNTY BOARD OF COMMISSIONERS Rob Masden, Commissioner RM/kas Rocky Mountain Energy Center, LLC 26 West Dry Creek Circle, Suite 600 Littleton, Colorado 80120 January 23, 2001 Weld County Planning Dept. VIA FACSIMILE AND HAND DELIVERY ,i 2 3 is r'2 Ms. Monica Daniels-Mika RECEIVED Department of Planning Services 1555 North Seventeenth Avenue Greeley, Colorado 80631 Re: Rocky Mountain Energy Center, LLC Dear Ms. Daniels-Mika: On November 6, 2001, the Weld County Planning Commission adopted a Resolution which required the Rocky Mountain Energy Center, LLC ("RMEC") to submit to the Department of Planning Services prior to the Board of County Commissioners' hearing the following documents: 1. A copy of an agreement with the property's mineral owners/operators stipulating that the oil and gas activities have been adequately incorporated into the design of the site or show evidence that an adequate attempt has been made to mitigate the concerns of the mineral owners/operators; 2. A Class 1 Cultural Resource Survey conducted through a third party; and 3. A Notice of Proposed Construction to the Federal Aviation Administration pursuant to § 14 C.F.R. Part 77. I. Communications with Mineral Owners/Operators As discussed at the November 6, 2001 Planning Commission Hearing, RME Land Corp. and RME Petroleum Company (collectively "RME") own the oil and gas estate underlying the proposed power plant facility site near Hudson, Colorado. Anacapa Land Company, LLC ("Anacapa"), an affiliate of RMEC, is the current owner of the power plant facility site. Anacapa and RME have reached an agreement in principle which is to be reflected in a Surface Use Agreement among the parties. The Surface .--- Use Agreement specifies the rights and obligations of each of the parties relating to the coexistence, development and operation of both the oil and gas estate and the power 14. EXHIBIT Iuself1333 L Monika Daniels-Mika January 23, 2001 Page 2 plant facility. The Surface Use Agreement will be drafted or amended to the extent necessary to eliminate any conflict or inconsistency with the preexisting Surface Owners' Agreement dated May 19, 1982. The Surface Use Agreement provides for the location of oil and gas wells and facilities in areas that are in a legal drilling window identified in Rule 318A of the Oil and Gas Conservation Commission. The Surface Use Agreement more particularly addresses the terms under which RME may drill wells that otherwise would be located in the NW4SE4, SW4SE4, NE4SW4 and SE4SW4 of Section 31, Township 2 North, Range 64W, but which will be impacted by the proposed power plant facility. RME has agreed to directionally drill these wells from other legal locations, and Anacapa has agreed that if RME drills the wells, it will reimburse RME for the difference in cost between drilling a vertical hole and a directional hole as a result of the location of the power plant facility over designated drillsites. In addition, Anacapa agrees to provide reasonable access and pipeline easements in the event of future operations on alternate drillsites; the parties will mutually agree to access routes and pipeline easements at the time each well is proposed to be drilled. The Surface Use Agreement will be binding on the successors and assigns of the parties. Since November 6, 2001, the parties have prepared and revised multiple drafts of the Surface Use Agreement. Anacapa expects to finalize the Surface Use Agreement with RME in the near term. Through the Surface Use Agreement, Anacapa and RMEC have made a diligent attempt to mitigate the concerns of RME with respect to its oil and gas interests and the development of the power plant facility. Sandlin Oil Corporation ("Sandlin") also owns certain oil and gas working interests at the power plant facility site. In October 2001, Anacapa offered to enter into a Surface Use Agreement with Sandlin in the event it wishes to drill to a target beneath the four potential drillsites identified pursuant to Colorado Oil and Gas Conservation Commission Rule 318A. Sandlin has not responded to Anacapa's offer to enter into a Surface Use Agreement. II. Cultural Resource Survey Three copies of the Cultural Resource Survey prepared by CH2M Hill are enclosed. The evaluation was conducted by or under the supervision of personnel who meet the Secretary of Interior's professional qualification standards. The Cultural Resource Survey includes the results of a Class I cultural resource database search as well as a field survey, which is not required by a Class I cultural resource survey On October 22, 2001, RMEC provided to the Weld County Department of Planning Services a summary of the preliminary results from the cultural resource investigation. The enclosed Cultural Resource Survey supercedes the summary provided on October 22, 2001. Please note that the Cultural Resource Survey concludes Monika Daniels-Mika January 23, 2001 Page 3 that sites 5WL4172, 5WL4173 and 5WL4173 do not meet the criteria for inclusion in the National Register of Historic Places ("NRHP"). A site which is not eligible for listing on the NRHP is deemed not significant for historic preservation purposes. Therefore, effects on such sites are not considered significant or unreasonable. III. Notice of Proposed Construction or Alteration Three copies of the Notice of Proposed Construction or Alteration sent to the Federal Aviation Administration on January 18, 2001 are enclosed. IV. Case Maps Finally, the Department of Planning Services requested copies of the case maps (Figures 2-1, 5-2 and 2-3, Supplemental Figure 2-2 and RMEC Project Location) printed on 81/2x11 paper. Three sets of such case maps are enclosed. Please let me know if you have any questions. Sincerely, David D. Perkins Director-Project Development Rocky Mountain Energy Center, LLC EAM:jp Enclosures tg {{ e Well Field Site Greeley Kersey -- RR as vnt N �a i i . N ,p ' Ws sonAfi .i Y r es ,a `4 it - - a Platteville t Existing CIG Gas Mainline = — 6-44 --` s ,1r, '+ i'. v x Keer.esdurp. 4 Gas Interconnection Point N aP lit * , sal ✓ , For 4 -. .■ . . `-uptoRn� 1:11 ^MI ■ Power Plant Site " " Legend "�` n Facilltes Pro Rocky Mountain °°"�°"""" Energy Center s Gas Pipeline 0 1 2 3 Miles °' webrPipeu"e Preferred Routes for Water and Gas Pipelines Source: USGS 1:100,000 Greeley Topographic GRG. Figure 2-1 •. e 1 ex _ - - s .-- Well Field Site Greeley irie4.L a_ Rereey yy 0 • i y lb � of g,j pnn e r31 of �� a - t rw.m I il; or— ‘1.11 -_ `� l 'x I ksta' as I ' O -i <♦ -i- 9 I ' y _a I' o. F . 1r 1 ; IPlattevllle -,'a a T I , -1 is 4 a: *u h I T er �A 1 11{1, a 1 tea..4,144'� Ji' i f ' Existing CIG Gas Mainline : •` . IF';' Keeneatwrg r O a Gas Interconnection Pant ` �A y a ' .•e• infra Fort) Ic , .YJ Y 0 ] ti • �}- Power 1 1 1 f } Plant Site LIP L Isleton s Legend w�e n FaalRies Study Area =I Property Boundary Rocky Mountain Preferred Water Pipeline Route Energy Center Alternative Water Pipeline Route Pipeline Study Area 0 �3 Miles Preferred Gas Pipeline Route Alternatives and Preferred Routes Alternative Gas Pipeline Route Sauce: USGS 1:100,003 Greeley Topographic DRG. Figure 5-2 r i i y_\‘. ,__ i 1,1 Ii t 't W Z i 1a pfd W S' g k 111 1 " 11 1 Z W v Z lg 1qJ e Gh!; I . t ., I ...„›... . , O a""'""''"�/ i I � I -� ) , i / / �..., }} tem1t�"T"T^T"MP T T^T T"T T +CST �"T T `IPA 0 i v u CC r qF aRf 4 a ; a oh aF� 6th 8 �.1 �, S i6 L a } q �i �I� _�� I ;Lipp[ CX ( 7CJGx C]CJC7�'i(, 11 li tHit • " - 'f �� a Jt - /r �� 1 _ fft .,-" Y +.. 1 y t ,iJi; F jet r :x W .M ,Oma,. -" • r• AI r• a— sonar w t aranannarran 5 wear 1 nn y I Jtl ""••••••/ rwr *22 a, a 12.O :4 . ..� _ 4 a r.uarE 'I N .. 21- ' rearaniarrmnesvank m...`e.o.K 6007 s rsr ....•••. N MOM'Eare .v .7.m.. 0.r..W a.r Ma \dam.. S TOPS' .4..x..,...0.7 ea...abeam. beam. Va. r.e0..rrwr ROCKY MOUNTAIN ENERGY CENTER 'I""I0° ^0N lIW b rM!/Nr Wr O lty W...V O.rYbbIr..ry.M Jr Ir7G rr...e b rBra e CLUNY .br.RWrfu.b Obr4Y6aNl..b.rsy� �!(b.r USE BY SPECIAL REVIEW 20__▪ e+rbrerra CONCEPTUAL SITE PLAN SUBMITTAL ,,1,7,.,,,,,,,,,,,,,,17,,,,, WELL FIELD SITE BOARD 6 WIIING9.IBFp90 O9frrA1101 TYbbr.)bBNIb.0Ir.0anninn . Nrrb�..bW r r .rnanni ..a#a. r Wb .. Figure 23 .EPO .rr•.YnrWr., °.."r'..'r.dnrsa r^^—,W Q....i..r.bmr..... .r ,,fl, ' WON 11MM4[bbYO Or W E TTM4YbrirY Dant 8 s" e WOBBVOYl1BIBPPROvAL A0 0 m so aoo 6 BIWrO.yYpnrvY Y�L.aerer Yina�ei� bl•M'wbw.W NR.r _lr h _ awe .m_ etas ep arr..OW.b.w) A.b..010.00.1 • re / ,..o.„ ......:,. ,, • . : yy� Y9.- - i i / y� Y k ems .. 1fF ✓ !�v �'n n� > >A A •�I �'Y f5 d \C *, _:ice' y a'�. f , k s 7" 4ig _ < t =y � ,,,,c• y"- : J� h yid sc,, t - " ,,, -7,27,-;-,-4,- . er-4i ' N 2 Ir'w_ R11AEC PoiMM Piii4 oundary - -- M n EC Property Bon y r, a ae `^'__ ka' -- k ✓ } ` y N W-e<Av>•••E 0 0.5 1 Miles s RMEC Project Location Final Report For Distribution To Weld County Department of Planning Services Cultural Resource Survey for the Rocky Mountain Energy Center (RMEC), Weld County, Colorado Prepared by CH2MHILL January 2002 DEN1013300002.DOC Contents Abstract 1 Cultural Resource Survey Management Information Form 2 Introduction 5 Environmental Setting 7 Overview of Culture, History and Previous Work 8 Research Design and Methodology 9 Survey Results 10 Evaluation and Recommendations 11 References Cited 12 Appendix 13 This report is the work product of CH2M HILL Inc., and cannot be modified without CH2M HILL's approval. Any unapproved modification must also include removal of all references to CH2M HILL. ^ DEN\013300002.DOC Abstract The Rocky Mountain Energy Center, LLC filed an application for a use by special review permit on May 15, 2001. In order to determine whether the Rocky Mountain Energy Center (RMEC) project"will not unreasonably affect any...historic landmark or archaeological site within the affected area" (Weld County Code§ 23-2-400), an evaluation of the cultural resources that could be affected by the RMEC project was undertaken between July and October 2001. Since Weld County does not prescribe protocols for evaluation of potential impacts on historic landmarks and archaeological sites, the evaluation was guided by protocols designed to ensure compliance with the National Historic Preservation Act.1 The evaluation was conducted by or under the supervision of personnel who meet the Secretary of the Interior's professional qualifications standards. The Power Plant Site, Wellfield Site, and both water and gas pipeline routes (RMEC Project Area)were examined. Comprehensive map and computer file searches were performed at the Office of Archaeology and Historic Preservation (OAHP)2 for previously recorded sites and structures on or adjacent to areas that could be affected by the project. The map and file searches identified one previously recorded Paleoindian site (5WL268) in the Project Area (Wellfield Site and northern portion of the water pipeline route) determined to be eligible for the National Register of Historic Places (NRHP). During the survey of the portion of the Project Area, it was determined that no project features (i.e., wells or pipeline sections) or activities would adversely affect the previously identified site 5WL268. Because the map and file searches revealed that most of the affected areas had not been subject to field survey, an intensive field survey was performed of these areas. The survey consisted of pedestrian walkover at transect intervals of 20 meters. During the survey, one new site and two isolated finds were encountered. The new site (5WL4172)comprised a prehistoric lithic scatter located in the southwest quadrant of the Power Plant Site. Because one of a series of shovel tests indicated the possibility of buried remains, two 1-meter square test units were excavated to determine if the site met eligibility criteria for the NRHP. The test units revealed that the artifact recovered in the shovel test was intrusive (displaced in an ancient rodent burrow), and that no in situ buried remains were present. On the basis of the testing, 5WL4172 does not appear to meet any of the criteria listed for NRHP eligibility. Therefore, site 5WL4172 is not considered a significant cultural resource. The isolated finds, each consisting of a single prehistoric stone artifact, were found (1) in the northwest quadrant of the Power Plant Site (5WL4173), and (2) at the north end of the water pipeline route (5WL4174). Both isolated finds are by definition not eligible for the NRHP. Therefore, sites 5WL4173 and 5WL4174 are not considered significant cultural resources. In summary, the RMEC project would have no adverse effects on archeological sites or historic structures or features that are listed on or eligible for inclusion in the NRHP. Therefore, the RMEC project will not unreasonably affect any historical landmark or archaeological site within the affected area. 1 The evaluation considered the potential impact of the project on properties listed or eligible for listing on the National Register �-. of Historic Places(NRHP). A site which is not eligible for listing on the NRHP is deemed not significant for historic preservation purposes. Therefore,effects on such sites are not considered significant or unreasonable. 2 OAHP is designated as the State Historic Preservation Office in Colorado. DEN1013300002.DOC 1 Colorado Cultural Resource Survey Cultural Resource Survey Management Information Form I. Project Size Total federal acres in project: 0 Acres surveyed: 0 Total state acres in project: 0 Acres surveyed: 0 Total private acres of project: 922 Acres surveyed: 922 Other: Acres surveyed: Total acres surveyed: 922 tr- II. Project Location County: Weld Principal Meridian: 6th USGS Quad map name(s) and date(s): Kersey (1950), Klug Ranch (1950/1978), Valley View School (1950/1978), Keenesburg (1950/1975), Hudson (1949/199), Fort Lupton (1949/1994) NOTE: The legal location information below is meant to summarize the general location of the survey and does not need to be precise. Township: 5N Range: 64 W Sec: 7 (wellfield and water line terminus) Township: 2 N Range: 64 W Sec: 31 (Power Plant Site) Township: 2 N Range: 66 W Sec: 34 (gas line terminus) DEM013300002 DOC 2 • Ill. Sites Smithsonian Number Resource Type Eligibility Management Recommendations Cu c O m 'C _)e O ` To V O Z C O o co > N O O N t0 y Q N t0 O a l0 L N N N '`? C O a) m 0 n O a a Q N To la J r > J L O17)' O . 'p) w a) C O) LL N C co O a` = a a w z z O W z O 1 w < Other 5WL4172 X X X A.-- ,.---, DEN1013300002 DOC 3 III. Sites Smithsonian Number Resource Type Eligibility Management Recommendations To c 0 c t Z '� p O `o o 0) To t > N a) N N 0 o a a CD C:3 0 -0 re p C • CO St- L 0) 0) N U C 3O N 2' ❑ n N C 0O i0 N E `o o ca) s n LLJ a N = a) > > 2 h W c m o a) o a) o o N X Et I a D w Z Z U Ce Z d 2 I- w < Other 5WL4172 X X X r DEM013300002DOC 3 IV. Isolated Finds (IFs) Please note that by definition IFs are not eligible to the National Register and require no further work. Resource Type Resource Type U U U O U O L O O co O 3 o m o v 3 C O O y C O E O C O Smithsonian H °' o m Smithsonian d h Number a I a J Number a = a D 5WL4173 X 5WL4174 X DEN1013300002.DOC 4 Introduction Public Service Company of Colorado (PSCo) is obligated to provide reliable electric service to customers and communities within its service area. Through a competitive bid process, PSCo selected the Rocky Mountain Energy Center, LLC, a wholly owned subsidiary of Calpine Corporation (Calpine), to provide electric generation resources to meet a portion of PSCo's projected energy supply needs. Rocky Mountain Energy Center, LLC, which is an independent power developer and producer and not a public utility, plans to provide electricity to PSCo's electric transmission system through the construction, operation, and ownership of a 600-megawatt (MW) natural gas-fired, combined-cycle power generating facility. This facility will be located in unincorporated Weld County, east of the town of Hudson, and will be known as the Rocky Mountain Energy Center (RMEC) (Figure 1). Rocky Mountain Energy Center, LLC has selected a 633-acre parcel (Property), in Weld County, of which an 88-acre subparcel will be developed as the Power Plant Site. The Power Plant Site and the remaining portion of the 633-acre Property are currently zoned and used for agriculture. In addition, a 107-acre parcel has been selected in unincorporated Weld County northwest of Kersey for development as a wellfield (Wellfield Site). The Wellfield Site is currently zoned and used for agriculture. The Power Plant Site is located in Section 31, Township 2 North, Range 64 West(31-2N-64W) of the U.S. Geological Survey Keenesburg Quadrangle. The approximately 88-acre Power Plant Site will include approximately 20 acres of temporary construction laydown area and parking. Natural gas for the RMEC will be delivered via a new, approximately 8-mile-long supply line (gas pipeline) to be constructed. The gas pipeline will extend west from the Power Plant Site along the preferred route of County Road (CR) 16 to the existing Colorado Interstate Gas (CIG) transmission pipeline located east of U.S. 85. The interconnection point of the gas pipeline and CIG transmission line is located in Section 34, Township 2 North, Range 66 West. The primary source of cooling water for the plant will be water pumped from wells located within 1 mile of the South Platte River. The water will be conveyed to the RMEC through an approximately 22-mile-long pipeline (water pipeline) sited along CR 51. Figure 1 indicates the locations of all project components, consisting of the Power Plant Site, Wellfield Site, and the gas and water pipelines (Project Area). DEN1013300002 DOC 5 Figure 1 (Insert Figure 2-1 from USR Application) DEN\013300002.DOC 6 M '= I - Well Field Site Greeley 'I a n' � al i 85 it, stir: • r•; 9 44. c /� .. • • • Platteville IY anI u Existing CIG Gas Mainline . - '/ �,�..rx Keansburg Gas Interconnection Point �y ', nt � _ ®! � �. Ra P. Fo Lupton hr� Power Plant Site - _ cra s " Legend V4 . n Feuiaee = Properly Boundary Rocky Mountain Energy Center s Gas Pipeline 0 1 2 3 Hies Weler Pipeline Project Location son: USGS 1:100,000 Greeley Topographic ORG. Figure 2-1 A map and file review of records at the Colorado Office of Archaeology and Historic Preservation (OAHP) was conducted for the Power Plant Site, Wellfield Site, gas and water pipelines and alternate pipeline routes. The file review revealed the presence of archaeological sites, isolated finds and historic features in the general vicinity of the RMEC Project Area. Based on results of the file review, a field survey was performed for the RMEC Project Area in order to inventory and evaluate historic properties that could be potentially affected by the project. The survey was conducted by and under the direction of John Hoffecker of CH2M HILL (see Appendix A). All survey personnel met or worked under the supervision of a person who met, at a minimum, the Secretary of the Interior's Professional Qualifications Standards (48 FR 44738-9) for an archaeologist. The field survey was performed at the Wellfield Site on July 11, and at the Power Plant Site on July 18 and 25, 2001. Testing of 5WL4172 (lithic scatter) at the Power Plant Site was performed on July 29. Field survey of the preferred pipeline routes was conducted from September 18 to 20 and on October 2. Environmental Setting The RMEC Project Area is located in the Colorado Piedmont, a shallow basin formed during the middle Cenozoic by erosion of bedrock along the eastern slope of the Rocky Mountains (Hunt 1974). The modem topographic setting is characterized by rolling uplands comprising low ridges divided by shallow northward-flowing streams that empty into the South Platte River. Upper Cretaceous sandstone underlies most of the area, although the northernmost portion is occupied by the broad Kersey Terrace of Late Pleistocene age. The Cretaceous bedrock is unconformably overlain by late Quaternary eolian deposits, while the surface of the Kersey Terrace is composed of fine-grained alluvium(Bryan and Ray 1940; Holliday 1987). The modem soils in the survey area are formed directly on the Quaternary eolian and alluvial deposits and vary within the Project Area. Soils in the northern part of the area that overlie the Kersey Terrace (where the Wellfield Site is located) are mapped as Ascalon Loam, which formed in clayey alluvium (Crabb 1980; Holliday 1987:322). At the Power Plant Site, the predominant types are Colby Loam(1-3% slopes),Colby-Adena Loams (3-9% slopes), and Shingle-Renohill Complex (3-9% slopes); the latter is a less deeply developed but well-drained grayish-brown loam (Crabb 1980). Vegetation in the Project Area is composed primarily of weedy forbs and grasses, including cheatgrass and western wheatgrass. Many portions of the area contain crops, including corn and alfalfa. Some willows and cottonwoods are present near houses and along the creeks. At the time of the survey (July-October 2001), ground visibility in the area ranged from less than 10% to 90% depending on the density of vegetation cover. Most of the land in the Project Area (already defined) is currently used for crop production or grazing, and these activities have clearly affected potential cultural resources. The use of heavy, ground-disturbing machinery for crop production has substantially disturbed surface and near-surface sediment in cultivated fields. Prehistoric archaeological sites in these areas are more likely to be observed on the surface (and also more likely to have been partially collected—especially with respect to diagnostic items). Cattle-grazing has exposed potential prehistoric surface sites to the effects of trampling. DEN\013300002 DOC 7 Overview of Culture, History and Previous Work (I have used the term"vicinity") Previous archaeological research conducted in the vicinity of the RMEC Project Area indicates that the area possesses a lengthy prehistoric and historic record of settlement. The early prehistoric record is especially well represented by a group of stratified Paleoindian sites (11,500-9,000 years BP) that are associated with the Kersey Terrace found in the Wellfield Site and northern portion of the water pipeline route. Early Paleoindian artifacts of the Clovis Complex have been recovered at the Klein site (5W L1368), which is located roughly 1,200 feet west of the RMEC water pipeline route. A Folsom occupation was found at the Powars site(5W L1369) (approximately 2,000 feet west of the water pipeline route). Younger Paleoindian materials (Plano) are present at the Frazier site (5WL268),which is located in the southeast portion of the Wellfield Site, and at the Jurgens site (5WL53), also located in the vicinity of the Project Area. (Holliday 1987:322-324; Cassells 1997:74-85). The succeeding Archaic period (7,000-1,500 years BP) is actually less well represented in the vicinity of the Project Area than the Paleoindian period, especially in terms of sites containing diagnostic materials. Sites of the Early Archaic are unknown, which may reflect reduced human settlement during the warm and dry conditions of the Altithermal (6,000- 4,000 years BP) (Stone 1999:56-61). Late Archaic occupations (3,000-1,500 years BP) are known east of the vicinity of the Project Area at West Stoneham, including Rattlesnake Shelter (5WL1856),which yielded diagnostic corner-notched points (Brunswig 1996; Cassells 1997:123-124). Some of the undated prehistoric lithic scatters in the vicinity of the Project Area probably represent the Middle or Late Archaic. Sites dating to the Ceramic period (ca. 1,500-500 years BP) are also not well known in the vicinity of the Project Area, although they are documented at West Stoneham (Brunswig 1996). The Late Ceramic and Euro-American contact periods (after AD 1500), although generally not well represented in northeastern Colorado (perhaps reflecting abandonment of the region due to severe drought, followed by an interval of high mobility [Stone 1999:83-85]) are also known from the West Stoneham area (Cassells 1997:236). Historic Native American tribes in the vicinity of the Project Area included the Apache, and later the Comanche and Arapaho. Traces of early Euro-American settlement in the vicinity of the Project Area seem to be unknown; the earliest historic remains date to the homesteading period that began after the Civil War. The Union Colony was established at Greeley in 1870,when settlers arrived on the newly built Denver Pacific Railroad. The Union Colony began one of the first major irrigation projects in the vicinity of the Project Area during the following year (Mehls 1984). Plumb Farm (5WL802), which is located immediately west of the Wellfield Site, dates from the early homesteading period (1870-1879). Another early farm property is the Klein House (5WL1541), which is situated east of Kersey roughly 0.5 miles west of the water pipeline route (constructed in 1890). The vicinity of the Project Area also contains some homestead sites and irrigation ditches that date to the early twentieth century (1900-1930). Map and file searches at the OAHP conducted in July 2001 yielded a total of 27 previously recorded archaeological sites, isolated finds, and historic structures within one mile of the RMEC Project Area. Only one site was recorded within a directly affected area. The Frazier site (5WL268) is located in the southeast corner of the Wellfield Site and the adjacent northern portion of the water pipeline route, and represents a late Paleoindian occupation DEM013300002 DOC 8 that is eligible for the NRHP. The remaining sites and isolated finds lie outside the RMEC Project Area. The file search at OAHP also revealed that 26 cultural resource surveys had included locations in the vicinity of the Project Area. However, very few of the Project Area component locations (i.e., Wellfield Site, Power Plant Site and pipeline routes) had been examined in the course of these surveys. Research Design and Methodology An intensive surface pedestrian field survey was performed of all areas of the RMEC project, including the Wellfield Site, Power Plant Site, and pipeline corridors. The survey design reflected the fact that virtually none of these areas had been subject to prior field surveys, and that a review of previously recorded sites suggested that the potential for archaeological remains was high in some portions of the RMEC Project Area (and at least moderately high in others). Of special concern was the area occupied by the Kersey Terrace (Wellfield Site and northernmost 2 miles of the water pipeline route),which contains a high concentration of Paleoindian remains. Another area of high potential was identified at the Power Plant Site, which lies on an old terrace along the eastern margin of Box Elder Creek. An estimated total of 922 acres were surveyed. The surveyed lands included the Wellfield Site (107 acres), Power Plant Site (88 acres), water pipeline route(509 acres), and gas pipeline route (218 acres). For each pipeline route, a corridor of 200 feet(100 feet on either side of the centerline) was surveyed. All areas that could be directly affected by the RMEC project that had not been subject to prior heavy disturbance were surveyed. Most of the areas eliminated from the survey because of heavy disturbance were paved or unpaved roads. The remaining areas were surveyed along pedestrian transects at intervals of 20 meters (roughly 50 feet) or less. Deviations from the fixed transect intervals were made often in order to exploit patches of better exposed ground surface (i.e.,where vegetation was less dense). In addition to pedestrian transects, both shovel testing and excavation of test units were performed for a lithic scatter (5WL4172) recorded at the Power Plant Site in order to assess its potential NRHP eligibility. Shovel tests were conducted at points on a 10-meter grid to a depth of at least 40 cm, and all sediment was sieved through a portable screen (0.25-in mesh). Because one of the shovel tests yielded a buried artifact, two 1 x 1-meter test units were delineated and excavated at the site. The test units were excavated with trowels, and all sediment was sieved through a portable screen. No artifacts or other cultural remains were collected during the field survey. A concentration of large bovid remains was found within the Power Plant Site about 100 meters north of lithic scatter 5WL4172. A sample of mammal bones was collected in order to determine whether they were bison bones that might be associated with either a prehistoric occupation or domestic cattle. The bones were subsequently cleaned and examined for the presence/absence of diagnostic morphological features (following Olsen 1960). Photographs (black and white) were taken of the Wellfield Site and Power Plant Site, as well as the lithic scatter (5W L4172) recorded at the latter. The field survey was designed and performed with the use of USGS topographic maps (7.5 minute series) and a set of recent low-altitude aerial photographs of the RMEC Project Area. DEN1013300002 DOC 9 Survey Results Field survey of the RMEC Project Area yielded a previously unrecorded prehistoric archaeological site (5WL4172) and two prehistoric isolated finds (5WL4173 and 5WL4174). The archaeological site and one of the isolated finds were located at the Power Plant Site, and the other isolated find was discovered along the water pipeline route. The site 5WL4172 was tested in order to determine its potential for NRHP eligibility. In addition to the archaeological site and the two isolated finds, a previously recorded archaeological site (5WL268) located within the Wellfield Site and adjacent water pipeline route was examined in order to determine the potential for effects of the RMEC project on the site. Finally, a concentration of large bovid bones encountered at the Power Plant Site was investigated as a possible prehistoric site. Archaeological Site (5WL4172) -The newly recorded archaeological site (5WL4172) comprises a lithic scatter located on the crest of a ridge along the eastern margin of Box Elder Creek. The scatter occupies an estimated area of 75 x 75 meters (roughly 1.1 acre). Approximately 10 artifacts were observed on the surface, including a bifacially retouched scraper (brown chert) and unretouched flakes (black and brown chert). No diagnostic artifacts were found, and the age and cultural affiliation of the site is unknown. In order to determine whether or not any buried cultural remains are present at 5WL4172, a series of nine shovel tests were excavated at points on a 20 x 20 meter grid established in the center of the lithic scatter (see above for description of testing methods). Because one shovel test yielded an artifact (unretouched flake), two 1 x 1 meter test units were excavated to determine the depth and character of buried materials. Excavation of the test units revealed that an extremely compact silt underlies the uppermost few centimeters of more friable sediment on the surface. The compact silt, which was excavated with some difficulty to a depth of 15-20 cm, yielded no artifacts in buried context. A re-examination of the shovel test that had produced the buried flake revealed that it had been excavated into an ancient burrow filled with younger sediment. The flake had apparently been redeposited in the sediment filling of the burrow. The lithic scatter appears to be a surface deposit without stratigraphic context. Isolated Finds (5WL4173 and 5WL4174) -The prehistoric isolated finds are each represented by a single artifact. The first of these (5WL4173) was found at the Power Plant Site roughly 250 meters north of 5WL4172 on the same landform (ancient terrace on the eastern margin of Box Elder Creek). The artifact (unretouched flake of Dawson Petrified Wood) was found on a moderately steep slope in a recently plowed crop field (corn). The second isolated find (5WL4174)was found roughly 150 meters south of the edge of the Kersey Terrace (and the Frazier site) within the water pipeline route. It consists of a thin, bifacially worked piece of whitish chert that probably represents a projectile point fragment. This artifact was also found in a recently plowed crop field (corn). At the location of both isolated finds, the surrounding area (radius of 10-20 meters) was surveyed intensively for additional artifacts. No additional artifacts were found. Previously Recorded Archaeological Site (5WL268) - During survey of the Wellfield Site, a previously recorded prehistoric site (5WL268) that is eligible for the NRHP was relocated and examined in order to determine the potential effects of the RMEC project on the site. DEN1013300002 DOC 10 �. The Frazier site is located on the margin of the Kersey Terrace, and the mapped eastern boundary of the site adjoins CR 51 (i.e.,northern portion of RMEC water pipeline route). Despite the size and complexity of this Paleoindian site(Wormington 1988), only isolated flakes and bone fragments were observed on the surface and eroding from the terrace margin. No artifacts or faunal remains were found within 100 meters of CR 51, despite extensive erosion along the slope where the road intersects the terrace. Bovid Bones - During survey of the Power Plant Site, a concentration of large mammal bones was found eroding out of the slope of a shallow gully roughly 100 meters north of 5WL4172. Approximately 30-40 large bovine bones and bone fragments were observed on the surface;no artifacts were encountered. The degree of weathering of the bones varied from minimal to moderately heavy. Because of the potential association between this concentration of bones and a prehistoric occupation (e.g., bison kill), a large sample of bones was collected for further analysis. Study of the bones revealed the presence of several morphological features characteristic of domestic cattle (Bos taurus) and not bison (Bison bison) (following Olsen 1960), and no stone-tool cut or percussion marks were observed on the bones. Evaluation and Recommendations The testing of archaeological site 5WL4172 at the Power Plant Site revealed that in situ buried remains were not present at this site,nor were any diagnostic artifacts encountered. On the basis of the test results, 5WL4172 does not appear to meet any of the criteria listed for NRHP eligibility. More specifically, the lack of diagnostic artifacts and features and the absence of remains buried in stratigraphic context indicate that this site will yield little or no information important to prehistory. The prehistoric isolated finds recorded at the Power Plant Site(5WL4173) and along the water pipeline route (5WL4174) during the survey are— by definition—not eligible for inclusion in the NRHP. Previously recorded archaeological site 5WL268 (Frazier site), located in the Wellfield Site and water pipeline route,was examined for potential effects of the RMEC project on the site. On the basis of this examination, it appears that this site will not be affected by any project activities. The wells in the wellfield will be located on the surface below the Kersey Terrace and a minimum of 500 meters north of the site 5WL268 boundary. The water pipeline will be routed along CR 51,which adjoins the mapped eastern boundary of the 5WL268 site. However, no artifacts, faunal remains, or features were observed within 100 meters of the road, despite significant erosion and exposure along the Kersey Terrace margin and roadcut. In summary, it appears that the RMEC project will have no effect on archaeological sites or historic structures or features that are listed on, or eligible for, inclusion in the NRHP. Therefore, the RMEC project will not unreasonably affect any historical landmark or archaeological site within the affected area. DENI013300002.DOC 11 References Cited Brunswig, R. H. 1996. Paleoenvironmental and Cultural Change in Northeastern Colorado's Late Archaic through Middle Ceramic Periods. Unpublished Ph.D. dissertation, University of Colorado at Boulder. Cassells, E. S. 1997. The Archaeology of Colorado. Revised Edition. Boulder: Johnson Books. Crabb, J. A. 1980. Soil Survey of Weld County, Colorado Southern Part. U.S. Department of Agriculture, Soil Conservation Service. Washington: U.S. Government Printing Office. Holliday, V. T. 1987. Geoarchaeology and late Quaternary geomorphology of the Middle South Platte River,northeastern Colorado. Geoarchaeology 2(4):317-329. Hunt,C. B. 1974. Natural Regions of the United States and Canada. San Francisco: W.H. Freeman and Co. Mehls, S. F. 1984. The New Empire of the Rockies:A History of Northeast Colorado. Denver: U.S. Bureau of Land Management Olsen,S.J. 1960. Post-Cranial Skeletal Characters of Bison and Bos. Papers of the Peabody Museum of Archaeology and Ethnology, Harvard University, Vol. 35, No. 4. Stone, T. 1999. The Prehistory of Colorado and Adjacent Areas. Salt Lake City: University of Utah Press. Wormington, H. M. 1988. The Frazier site,Colorado, in V. T. Holliday (editor) Guidebook to the Archaeological Geology of the Colorado Piedmont and High Plains of Southeastern Wyoming. Madison: Department of Geography, University of Wisconsin. DEM013300002 DOC 12 Appendix A Professional Resume DEN1013300002.DOC 13 JOHN F. HOFFECKER CH2M HILL 100 Inverness Terrace East Englewood,Co 80112 303/220-7646 Research Interests Paleoecology of foraging peoples in cold environments; Pleistocene settlement in Eastern Europe; prehistoric hunter-gatherer adaptations in arctic and subarctic Alaska Education Ph.D., Anthropology, University of Chicago, 1986 M.A., Anthropology, University of Alaska, 1979 B.A., Archaeology (Honors), Yale University, 1975 Professional Experience 1999-Present CH2M HILL On Call 1999-Present Research Associate 1998-1999 Research Affiliate Institute of Arctic and Alpine Research University of Colorado Boulder,Colorado 1991-Present Research Associate Illinois State Museum Springfield, Illinois 1989-1999 Environmental Scientist (Archaeologist) 1983-1989 Assistant Environmental Scientist(Archaeologist) 1996-1998 Manager, Natural&Cultural Resource Management Section 1992-1996 Manager,Social Sciences Section Environmental Assessment Division Argonne National Laboratory Argonne, Illinois 1985-1987 Adjunct Professor 1982-1983 Instructor Department of Sociology and Anthropology Roosevelt University Chicago, Illinois DEN1013300002.DOC 14 �. Books Hoffecker, J.F. 2002. Desolate Landscapes:Ice-Age Settlement in Eastern Europe. New Brunswick: Rutgers University Press (298 pp.). Hoffecker, J.F. 2001. Twenty-Seven Square Miles:Landscape and History at Rocky Mountain Arsenal National Wildlife Refuge. Denver: U.S. Fish and Wildlife Service (101 pp.). Hoffecker, J.F. 1998. Saigo No Kyujin-rui Neanderthal. Translated by Yoko Igarashi. Tokyo: Shufu to Seikutsu-sha (42 pp.). Hoffecker, J.F. 1997. The Last Neanderthals. London: Weidenfeld and Nicolson (40 pp.). Hoffecker, J.F. and Wolf, C.A. (editors) 1988. The Early Upper Paleolithic:Evidence from Europe and the Near East. BAR International Series 437. Oxford: British Archaeological Reports (277 pp.). Other Publications (Selected List) Hoffecker, J.F. (in press) Late Pleistocene and early Holocene sites in the Nenana Valley, Alaska. Arctic Anthropology (in press). Hoffecker, J.F. (in press)The Paleolithic age, in Archaeology Companion, pp. 140-143. Sydney: Weldon Owen Publishing. Hoffecker,J.F. 2000. Arctic pioneers: Reconstructing life and death among the Palaeo- Eskimo. The Review of Archaeology 21(2):18-22. Hoffecker,J.F. 2000. Spread of archaic humans, in The Atlas of World Archaeology, pp. 23-25. London: Time-Life Books. Hoffecker, J.F. and Cleghorn, N. 2000. Mousterian hunting patterns in the northwestern 'e-- Caucasus and the ecology of the Neanderthals. International Journal of Osteoarchaeology 10(5):368-378. Hoffecker, J.F. 1999. Neanderthals and modem humans in Eastern Europe. Evolutionary Anthropology 7(4):129-141. Golovanova, L.V., Hoffecker, J.F., Kharitonov,V.M. and Romanova, G.P. 1999. Mezmaiskaya Cave: A Neanderthal Occupation in the Northern Caucasus. Current Anthropology 41(1):77-86. Hoffecker, J.F. 1999. Art treasures of the Ice Age steppe, in P.G. Bahn (editor) Wonderful Things, pp. 126-127. London: Weidenfeld and Nicolson. Hoffecker, J.F. 1998. The Nenana Complex, in G. Gibbon (editor) Archaeology of Prehistoric Native America:An Encyclopedia, pp. 558-560. New York: Garland Publishing. Golovanova, L.V., Hoffecker, J.F., Kharitonov, V.M., and Romanova, G.P. 1998. Mezmaiskaya Peshchera (rezultaty predvaritel'nogo izucheniya 1987-1995 gg.). Rossiiskaya Arkheologiya (3):85-98. Hoffecker, J.F. and Baryshnikov, G. 1998. Neanderthal ecology in the northwestern Caucasus: Faunal remains from the Borisovskoe Gorge sites, in J.J. Saunders, B.W. Styles, and G. Baryshnikov(editors) Quaternary Paleozoology in the Northern Hemisphere, pp. 115-139. Illinois State Museum Scientific Papers, volume 27. Golovanova, L., Hoffecker, J., Nesmeyanov, S., Levkovskaya, G., Kharitonov, V., Romanova, G. and Svejencev, I. 1998. Un site Micoquien Est-Europeen du Caucases du Nord (Resultats preliminaires de 1'etude de la grotte Mezmaiskaya, les fouilles des annees 1987-1993). L'Anthropologie (Paris)106(1):45-66. Hoffecker, J.F. 1997. The archaeology of the European Neanderthals: East and West. The Review of Archaeology 18(1):1-11. DE111013300002.DOC 15 Hoffecker, J.F. 1996. The puzzle of Neanderthal burial, in P.G. Bahn (editor) Tombs, Graves, and Mummies, pp. 34-37. London: Weidenfeld and Nicolson. Hoffecker, J.F. 1996. Introduction to the archaeology of Beringia, in F.H. West (editor) American Beginnings, pp. 149-153. Chicago: University of Chicago Press. Baryshnikov, G., Hoffecker, J.F. and Burgess, R.L. 1996. Zooarchaeology and palaeoecology of Mezmaiskaya Cave, northwestern Caucasus.Journal of Archaeological Science 23:313-335. Golovanova, L.V., Hoffecker, J., Doronichev, V.B. and Kulakov, S.A. 1996. Izuchenie paleoliticheskikh pamyatnikov Sevemogo Kavkaza, in Arkheologicheskie otkrytiya 1995 goda, pp. 214-216. Moscow: Institut arkheologii Rossiiskoi akademii nauk. Hoffecker, J.F. 1996. Central and Eastern Europe: Early Periods, in P.G. Bahn (editor) Cambridge Illustrated History of Archaeology. Cambridge: Cambridge University Press. Hoffecker,J.F. 1995. Mammoth-bone houses of Eastern Europe, in P.G. Bahn (editor) 100 Great Archaeological Discoveries, pp. 54-55. New York: Barnes and Noble. Baryshnikov, G. and Hoffecker,J.F. 1994. Mousterian hunters of the NW Caucasus: Preliminary results of recent investigations. Journal of Field Archaeology 21(1):1-14. Hoffecker, J.F., Powers,W.R. and Goebel, T. 1993. The colonization of Beringia and the peopling of the New World. Science 259:46-53. Hoffecker, J.F. 1992. Early periods, Central and Eastern Europe, in P.G. Bahn (editor) Collins Dictionary of Archaeology. Glasgow: HarperCollins. Hoffecker,J.F. and Waythomas, C.F. 1991. Geoarchaeological reconnaissance for Late Glacial sites in the Upper Kuskokwim and Holitna Lowlands, Alaska. Current Research in the Pleistocene 8:105-108. Hoffecker,J.F., Baryshnikov, G.F. and Potapova, O.R. 1991. Vertebrate remains from the Mousterian site of Il'skaya I (northern Caucasus, USSR): New analysis and interpretation.Journal of Archaeological Science 18(2):113-147. Hoffecker, J.F. 1990. Siberia (Current Research).American Antiquity 55(2):410-412. Powers,W.R. and Hoffecker, J.F. 1989. Late Pleistocene settlement in the Nenana Valley, central Alaska.American Antiquity 54(2):263-287. Hoffecker, J.F. 1989. "Mnogoslojnaya paleoliticheskaya stoyanka Molodova V. Lyudi kamennogo veka i okruzhayushchaya sreda" (Book Review). Geoarchaeology:An International Journal 4(3):284-286. Hoffecker, J.F. 1988. Applied geomorphology and archaeological survey strategy for sites of Pleistocene age: An example from central Alaska. Journal of Archaeological Science 15(6):683-713. Hoffecker, J.F. 1988. Early Upper Paleolithic sites of the European USSR, in J.F. Hoffecker and C.A. Wolf(editors) The Early Upper Paleolithic:Evidence from Europe and the Near East, pp. 237-272. BAR International Series 437. Oxford: British Archaeological Reports. Hoffecker, J.F., Waythomas, C.F. and Powers,W.R. 1988. Late Glacial loess stratigraphy and archaeology in the Nenana Valley, central Alaska. Current Research in the Pleistocene 5:83-86. Hoffecker, J.F. 1987. Upper Pleistocene loess stratigraphy and Paleolithic site chronology on the Russian Plain. Geoarchaeology:An International Journal 2(4):259-284. OEM013300002.DOC 16 • JAN 21 2OO2 1 : 2OPM CALAINE CORPORATION 72O-283-4154 p. 3 Please Type or Print on Thls Form Form Ap roved OMB No,2120-0001 C Failure To Provide All Requested Information May Delay Processing of Your Notice FOR FAA USE ONLY Aeronautical Study Number urpAviati nof Admsportrati Notice of Proposed Construction or Alteration - - - F I Aviation Administration 1. Sponsor(person,company,etc.proposing this action): Attn.of: David Perkins 9.Latitude: 40° u; 27. 75633" Name: Rocky Mountain Energy Center,LLC Address: 26 W.Dry Creek Circle,Suite 600 10.Longitude: 104° 35a 43. 64029" 11.Datum: 0 NAD 83 ®NAD 27 ❑Other City: Littleton State, CO Zip: $120 Telephone: 720-283-4137 Fax: 720.253-4154 12.Nearest: City:Hudson Stale:Colorado 2. Sponsor's Representative(If other than#1): 13.Nearest Public-use(not private-use)or Military Airport or Heliport: Attn.of: Gary M.Non Platte VallevAir°ort Name: Caloine Corporation 14.Distance from#13.to Structure: 5.5 miles Address: 4160 Dublin Blvd 15.Direction from#13.to Structure: Airport is East of Proieet City: Dublin State: CCA Zip: $4565 16.Site Elevation(AMSL): 4970 ft. Telephone: 925-479.6734 Fax: 925479-7303 17.Total Structure Height(AGL): 177 ft. 3. Notice of: ® New Construction ❑Alteration ❑Existing 18.Overall height(#18.+#17.)(AMSL): 5147 ft. 4. Duration: is Permanent ❑Temporary( months, days) 19.Previous FAA Aeronautical Study Number(if applicable): 5. Work Schedule: Beginning 512002 End 5/2004 NA -OE 6. Type: 0 Antenna Tower 0 Crane ❑Building ❑Power Line 20.Description of Location:(Attach a USGS 7.5 minute 0 Landfill 0 Water Tank ®Other Stack Quadrangle Map with the precise site marked and any certified survey.) 7. rkinglPainting andlor Lighting Preferred: USGS Map with site location attached. rai Lights and Paint 0 Dual-Red and Medium Intensity White [j vVhlte-Medium Intensity ❑ Dual-Red and High Intensity White ❑White-High Intensity ®Other NA 8. FCC Antenna Structure Registration Number(if applicable): NA 21.Complete Description of Proposal: Frequency/Power(kW) Rocky Mountain Energy Center,LLC piens to construct a 600 MW power plant in Weld County,Colorado.The project, Rocky Mountain Energy Center(RMEC),will be located approximately 5.5 miles east of the Platte Valley Airport. The highest stack height at The RMEC will be less than 200'(stack height=177"above ground elevation),and will have less than a 100:1 slope within 20,000 feet from the airport. This project does not require Notice of Proposed Consruction or Alteration to the FAA based on the above criteria.However,this notification form is being submitted pursuant to a resolution by the Weld County Planning Commision,adopted on November 6,2001(Item 3c). No aeronautical study is requested or required. Notice is required by 14 Code of Federal Regulations,part 77 pursuant to 49 U.S.C.,Section 44718. Persons who knowingly and willingly violate the notice rrpuremenis of part 77 are subject to a civil penalty of$1,000 per day until the notice is received,pursuant to 49 U.S.C.,section 46301 (a). I aby certify that all of the above statements made by me are true, complete, and correct to the best of my knowledge. In addition, I agree to mark and/or light the structure in accordance with established marking and lighting standards as necessary. rrry Date Typed or Printed name and Title of Person Filing Notice Signattt 1-16-2002 David Perkins,Director-Project Development �f��//� FAA Form 7460.1 (2-99)Supercedes Previous Edition NSN:0052-00-012-0008 1 11 g 3 v �� n re I R a i P1 _ J, J N ¶ S r " .S f \ft Sri O i . -' on'tit), i p ‘-t-f;: ti 1 yrt rad.. . ' 'I , I � lit. t. +) c' •- � '�. 1. r.. n _ t r---- y 1 r--•� F i- 3 rr� :-I rte' ♦ ..i \ ` Y U\. ! Zn y:," « „ it a . y A --7 t-t „ n a4 5 M1 - r N‘"i• �. f r { .� -- t�. - r 31 3f M .. I - I e _ _ �l�i i _.._ . a 4 / ' O Ir .a I 1 0 ' J ,__It "" , ' I .6 cn p J U r + s-- r r a, ' r i_ I gir d .yam ..11-1 LI b -d ITS Ib-882-OZG NOI1H210d2100 3NId�FiO Wdo : t ZOOZ 12 NEW ^#. I • I•r ' I ? .!j cr • y• .p ...• •,rf •Fit • t •! r • t4 r Yir 146 i ' I ' -rte-. 1 - - , •• . ,§ X- { .illit fi L e 41 rd L y ... •1 ,Y .•.*-: • It-.1 v r 1, 1 •• • d . r •. -• • • T q • . .t/+ . • ROCKY MOUNTAIN ENERGY CENTER • `' ; USE BY SPECIAL REVIEW VICINITY MAP - - '� •.�,'• ' . ' j O ti .yen 5 a.. Y.nr,- :y . y Stalolano • t✓ o L x'. ha 7,,.. a l 'a.C• "` �/ I IY4a V.wen MeIIt«t'S. MEI !•iY 4 s [ F y�• ^J .. .,..,t2_,-/-c.• w.3 n₹ Yom... Y. '' .- r, px �� s UK+ <E «` 54� r'. r� • Ys •.Ij, i ��p >� Q } v • �.a a1 7 . 4 S .•f. yE' I (( • x Poudre River 's!y Wells y soot/5 plat?. Greeley HW-34 H ,_e Li Kersey Big Thompson River , h, C �k 4) a c I 0) Cif Y 1 A O--+ Q s N Sole In Was a slain 1 112 . 2 ll, 0o Keenesburg Gas Pipeline Rocky Mountain Energy Center rl Well Field and Pipeline RMEC Delivery System Hudson TZA Water Engineers, Inc. November, 2001 - ( g O O C -O a Z . — " CU ra .O— 0 C m . o tn a o C N 1/46 O c o cn a Z = 2 V U ci. LL - -a � V 4) a3 = a) O .}. , O �- oC a U D U O CD O O ! c O_ W V .O V a n ,a% a) a a o c o �— -a o s5 - "a (n 2 ' Ecro cts s_ = (n .O .J N cn ' O > Cr; C a- a) c a m � a) m V ra -C O -1-1 tilli • '2 \ IL /� ` I—u ? 3 P ; r. 6 TJ ry y[ E• W ci,b % a Q {.�' in $ l• -� �i • o �arh � Nr ' LL o 0 °EI � pt. b lr. ,�T,i a O i . C = / m • it 4 in an IN' °°, 1 y, 1' § ii • g> D A • a -j it t iy LE C � )t _ l/�' `J , ti 3 J • t.Y � \ :."� T.,.. , Y5 1;17 i, a / fir✓ . Z a., fV 2 '� • J. f 0 Y� O C CD C a . . a--, = .V fp cu E cn E 4) O p § ID o o I .0 > _ CO 0 - V (0 L O I. o U I. -4-j" MO (n o E o �- Ce N c u o 0 CU 8E > N E._ kr) cn - 1/4;1 "Cr § 5 Li -113 CU Z% I > N 2 2 S .O Q -a IF U QLE N p i 2 N 2 co ca cE C O - — OC > U O a > Q ■ ■ ■ I. /'• �.o� lc 1 _ { . t xt i} 1 ;ti T 1'; s > y : Yt t + w ` i� f ! r Y tt. �' f• � Yr dx `' 1 J . d F ) 9 v+: ' 75 _ i � St: Ill t i1 . E h',-;',', , , 4 Ch INII = , , CL r U) C U) a) L. LaJP. .-+ c a) (J) — To N ..... a--' a) = c a) 2 _� � O C °n _ 4-, C a ,a) O �— :i-) t (I) " 4-• = , % Ck Jin E. 6) t O I = C in o a � in O ca '— U V a) co o c, a) a D 7 c U E _ n �5 'Q O � X a Va L2 fl ra ■ ■ ■ ■ ■ 4-., u Vcam/) tn O 0 u (13 LT- 4U a CO e• O .� U c O a) •- 0 4-1t W J L -0 O = v, - a) o o Q =� = = ELUv .a = V 0 0 U w N U a co to U -D cer0 � -a -0 c c "' -a a� E — ..° 4) a Y = U 0.) Q H p ■ ■ ■ ■ ■ ■ ■ ■ r CU � C M L �, Irri V) 0 0 -a -D 0 U) co a 0 n iti 1 u0) = Q O N 0 = 0 ra 0 0 E CU 0 cif) a) v) 0 a--, 00 a0., Q 0 u) (a V C = a .C O > t O � a� o n — i c O 0 a) O C a a) E N tE c E n -� c ` OV a N U = " a) p N ti; at O Ea--� O ro a—v -'- a -cc) E = Ep6C-ill's-a) .§ -w a.a O o coo O O 0 a) U U > acn La � V . . V) C ^L W i) V cn ra C 92 a) V a_+ U no a' a' E cu E E C 03 - ra al N.... N a- a .cn E a. = C aU �`—' o as C O Q a z° CD JI- -ID U . . . . . . . . . . n r- 0 O O V W N 2 0 0 li O N , C) O) L I O C) (13 d M , , M O Q � O M cisZ N • c cc c r` anoy-feMe6e gad suol /'N 6 73 0 = C rB O Lo-Oo cn a, .(IF C a- •— •— L. co .—C � V O CD O Cr) rQ O >% a) v .a) -v S- C - 0 -a C = , O 2 O = O o a)SD r6 o (1)C a) Vo U.-0 O as oc C co ro 7O E f LD O O2 .a' a o a ( VoCLE i- 4- 0; .E ■ ■ ■ 7 -' L 4 t �.s, °yS (1 • �t4 °) .� •�S �a ,s4 �s� Spa sp y 4° 40 . J�i�, ode V) 1 1 1 1 1 2 d' �a7 °O r r x- 4• J z `o-d eo t ai r ° `°J 4 4- co is N cn c1 O N .C .Ira _c C — = 21 L - o L •a) x16 o � Z >: =43) c v_1 fa arm a) an O V 2 2 -c, • — '� Q ■ ■ ■ ■ J � ■ ■ r'` a .O 2 ._ - E - LZ c —i co o , .- O 0 ee N V Oro O ro E .O L C O O1 �= C C L.) C OO C . O O N � t `~ V nci e,, (0 S ,--i a1 .O L. N in 0 "0 C >% O ry U O ca O- .— — = -v E > v � � ." U) N O2 a C j f2 v) O a — L — uC 1-1 '— a-' O al O -p N C 9- C 4� . � U O 4-- s_ UU u , .E co 0 CC — EMS = V ■ ■ ■ ■ ■ • t°Y e§ e • /44 , fi / ..t../ 7 soI ii 11 l ��vt.• wl�fr ^q r ■ \s • f ti V 7 __s (!') D C J Ta 0 II 73 C a) a) a) e L- a) 0) O L. O CD O ID =C ma = Z., a) tri IR "ri J .L = .a I-+ O r trscl " > + ) in co - .a V Q) r N D C -O co _ O .— a--a O a a1 C O .— L — C CO MO L C O V) �Vi J ate-.+ I— fa ■ ■ ■ r elk .1_J (I) .. .o CD E 2:Piz a) 0, �' c v) .3) a.) a3 O c C V 0 — o o E a 8 -O a0 "Iv a o •fp - O L -a _ - U � -1 O9U CU u 4= O 0 �--1 ) " g >,. E > .� -p — r Orl = O Vo L � .s= z E O O- O— ,_ a, c ._ 4_, 4_, L c C N V cn V a1 = 03 �- co ac 0 — o L 2 .- oC co Z •§ U O oC ■ ■ ■ ■ r C L L a) a) 4 04-1 0 n � ft) a) U (o P O fo Ot _ 4-1 > — U co L _c = N > .N a1 O L DC a _ = _ 'ice 0 O O Oi_ �' 2 ° .� a) a)ra i �` a"' c a) _ i � 1- a) a) -v -EO _ ' a) ms O 1- 4 � Q fuE a) Q01 co a) 0 = ' ) > � 2 ■ ■ ■ ■ ■ r IL 0 E L N f U • a) w N I c i II N O 03 N ro p O a-, w -v a (n 0- >� _ Lfl. N c a..+ 4) (nc C >• N .5 -t C an O fa E. Q .0 0 o E O c1 � tnn �s — U e " CO W ^ , O VI ` L L � V L = L ID O E 2 a--' (n 'Du) O "a i L 'a a..' .5 . ca _ ca L 4) = o � - (n o � .3 0 � � U ri (BUJ U Q � � E = a a w � — C ca _N . OoC � N ° - 0 Q ra O O i , c _ Q UOv UUn a) 4J Lto co ' \ L L N te � , ' a) i 0- L.) s Z . C31 c0 = = MI E 2 ,cnx_. oscs Morel CU ji)Tu Vi fa E 2 � m Ec O 0 ;C CU a) o -a c U ,_ W C N O 0 a (1) (73 na3 � N a) cun CLI ,� .§ .� L C 0 a '- ( (a ;5 In cu rp ra 'c — L lira 4.1 aa) acn a) n 2 a _ (a a) 0 0 _a N = > .0illa It � _ V H I— t _c ma HNC' ■ ■ ■ ■ 7 -' sir e-, E + +�- O V 4) U L C LO .0 u) 5. V O 0 i 0 V CO - .1.1)L '- C 4) co C C •- \U) 4-1 O (n c c ., ^ ■ a) 'Oits v) O) co CO fp E 72 a--_ a co o a a t in � . _ L•ig Q L ca e (J) X a d) (a O O n o C _o F O IP o ._ ._ (I) 0 Q0 ._ ._ _ (n x x 8 C O O O O Q - U U a a ■ • • ■ • r'` -1--i . ^ � � W a••r a ro U ID 1O = 0 0 ,c 0 0 of > es, [� '1' o a cn s. E fo 0- N to u�i O O mat tic 4_, a fu 0 s� � OE a , a) a) .-„, N t 0 r a E .U E •c raft ,tnb o = f- = 1- c) -a _C o � E Q CEO so rio -o 0 ■ ■ ■ ■ 2- 4-02, 8:31PM;DENVER DIST. COURT ;303 640 2089 # 2/ 2 February 4,2002 VIA FAX(970)352-0242 - - Weld Board of County Commissioners 915 10th St. Greeley,CO 80631 Attn: Esther Gesick Dear Commissioners: I am writing today to express my support for the Rocky Mountain Energy Center.I ask that you support this important project for Weld County on February 6th. I grew up in a small town in North Dakota that reaped the benefits of a power plant. The plant was a huge boon to my school because of the taxes generated by the facility. We had the best facilities of any school in the area due to the power plant. The school district was able to build additions to the school and the curriculum with the money that was generated by the power plant. I do not have children of my own,however,my nephew is a student of the RE-3J school district,and now that I am a resident of District RE-33,I would like to see the same benefits accrue to him and other students. When deciding how to vote on this important issue on Wednesday,please take into consideration how much this project will help our public school kids in Hudson and Keenesburg. Sine rely, ' A,44 Kari Kutz 360 S.Ash St. Keenesburg,CO 80643 • [ 1 EXHIBIT D LISQ#P133e) a 3 Q i u _ \ LL �k � ,k .d . 4 .1 2 c HJi•• h.• J mo V O O .`S v o Q 04,2 d � cG Qw a , „ k .6 — k a •• z y ,1 I1 2 8H . .€ � U v 8 o a V ..s d pu N • 8 w O O s 4 O .0 O C. a ° 3 .fi o C T �.� m c o % g o. U N T .9 U IflifflIj j. Pi KO G F W Tpoymry {�pG1 s� J cc co C CD o `...i, ou o -I .0' C. a,ew ' eiZ u ro 5 p.� w Q o -2 4 v N m U v ¢ o N U U O rt 8 o v .>.., d z Y� � 03 R y y o o m o o0) g of �; 2 v " m yo o m v - o -. w UBa, c5 ¢ Bac5 aiUa .0 s ° I3 F a) a, 'O . C CO y Y a). *CO a)' •U •2 :m. O a) •d v, 0: 1 2 EXIII-e1T Lu: w r w CW • • iC • \ � ) ! \ /) j 9. \ ) (ff » - /) ) ® ) J i. Zi ) • `: A , ! ® } J }_ f {.4 ! | f j 2 ) } | ) j CD ) \ / / « 2 t] ! $ ® ! ) ( f ` | ) \ ! , |!l Z }} {}/ } )! ! § , / \ c ) CO K CB } + k / \ a l%vised 6� 4k App! cant Drafted by the Clerk to the Board RESOLUTION RE: APPROVE SITE SPECIFIC DEVELOPMENT PLAN AND USE BY SPECIAL REVIEW PERMIT #1339 FOR A USE BY RIGHT, AN ACCESSORY USE, AND A USE BY SPECIAL REVIEW IN THE INDUSTRIAL ZONE DISTRICT (POWER GENERATION FACILITY, INCLUDING TWO HEAT RECOVERY STEAM GENERATOR/COMBUSTION TURBINE GENERATOR EXHAUST STACKS APPROXIMATELY 175 FEET IN HEIGHT, ONE AUXILIARY BOILER STACK APPROXIMATELY 120 FEET IN HEIGHT, AND TWO HEAT RECOVERY STEAM GENERATORS THE DIMENSIONS OF EACH BEING APPROXIMATELY 90 FEET TALL BY 150 FEET LONG BY 40 FEET WIDE, A 107-ACRE WELL FIELD SITE, AN APPROXIMATELY 8-MILE LONG GAS PIPELINE AND AN APPROXIMATELY 22-MILE WATER PIPELINE AND AGRICULTURAL USE BY RIGHT IN THE A (AGRICULTURAL) ZONE DISTRICT - ROCKY MOUNTAIN ENERGY CENTER, LLC WHEREAS, the Board of County Commissioners of Weld County, Colorado, pursuant to Colorado statute and the Weld County Home Rule Charter, is vested with the authority of administering the affairs of Weld County, Colorado, and WHEREAS, the Board of County Commissioners held a public hearing on the 6th day of February, 2002, at the hour of 10:00 a.m. in the Chambers of the Board for the purpose of hearing the application of Rocky Mountain Energy Center, LLC, c/o David Perkins, 1248 West Hinsdale Drive, Littleton, Colorado 80120, for a Site Specific Development Plan and Use by Special Review Permit #1339 for a Use by Right, an Accessory Use, and a Use by Special Review in the Industrial Zone District (Power Generation Facility, including two heat recovery steam generator/combustion turbine generator exhaust stacks approximately 175 feet in height, one auxiliary boiler stack approximately 120 feet in height, and two heat recovery steam generators the dimensions of each being approximately 90 feet tall by 150 feet long by 40 feet wide, a 107-acre Well Field site, an approximately 8-mile long Gas Pipeline and an approximately 22-mile Water Pipeline and Agricultural Use by Right in the A (Agricultural) Zone District on the following described real estate, to-wit: Power Generation Facility: Section 31, Township 2 North, Range 64 West of the 6th P.M., Weld County, Colorado Well Field Site: Section 7, Township 5 North, Range 64 West of the 6th P.M., Weld County, Colorado Various parcels along the Gas Pipeline and Water Pipelines WHEREAS, said applicant was represented by David Perkins at said hearing, and /^ SPECIAL REVIEW PERMIT #1339 - ROCKY MOUNTAIN ENERGY CENTER, LLC PAGE 2 Drafted by the Clerk to the Board WHEREAS, Section 23-2-230 of the Weld County Code provides standards for review of said Use by Special Review Permit, and WHEREAS, the Board of County Commissioners heard all of the testimony and statements of those present, studied the request of the applicant and the recommendations of the Weld County Planning Commission and all of the exhibits and evidence presented in this matter and, having been fully informed, finds that this request shall be approved for the following reasons: 1 The submitted materials are in compliance with the application requirements of Section 23-2-260 of the Weld County Code. 2. It is the opinion of the Board of County Commissioners that the applicant has shown compliance with Section 23-2-230.B of the Weld County Code as follows: a. Section 23 2 220.A.123-2-230.B.4 -- The proposed use is consistent with Chapter 22 and any other applicable code provisions or ordinances in effect. By dedicating a small portion of the site for improvements, the applicant has made an attempt to preserve prime farm land. Further, as stated in the application materials, no "Prime" farm ground will be taken out of production. Of the 633 acres at the Power Generation Facility site, only 88 acres will be used for facility purposes. The Well Field site will continue to be predominately agricultural as only ten of the 107 acres will be used for Well Field activities. Presently, the Well Field site location is in sub-irrigated pasture and a portion of the Power Generation Facility site is in agricultural production served by a center pivot irrigation system. According to the application materials, the existing center pivot will continue to irrigate the Power Generation Facility site. The application satisfies the following goals as cited from Chapter 22 of the Weld County Code. Section 22-2-60.A.1 (A.Goal 1) states, "the application preserves prime farmland for agricultural purposes which foster the economic health and continuance of agriculture." The design and layout of both sites has attempted to preserve agricultural lands, and historic farming practices will continue. According to the application materials both parcels will retain existing water rights to irrigate the farm ground. The Power Generation Facility was designed to be located on a partially sloped area west of the cultivated portion of the site. Additionally, existing infrastructure is available by rail lines and Interstate 1-76. As a Condition of Approval local roadway upgrades will be required. 2002.0143 PL1582 SPECIAL REVIEW PERMIT #1339 - ROCKY MOUNTAIN ENERGY CENTER, LLC PAGE 3 Drafted by the Clerk to the Board Section 22-2-60.B.1 (A. Goal 2) states, "the application allows commercial and industrial uses which are directly related to or dependent upon agriculture to locate within agricultural zoning when the impact to surrounding properties is minimal, and where adequate services and infrastructure are available." The majority of the land surrounding the Power Generation Facility will serve as a buffer between existing residential units within the vicinity of the site and the industrial and commercial development occurring adjacent to the municipal limits of the Town of Hudson. Section 22-2-60.C.1 (A. Goal 3) states, "Discourage urban-scale residential, commercial and industrial development which is not located adjacent to incorporated municipalities." The Town of Hudson Industrial Park is located west of and adjacent to the site. This industrial park is presently under development and has been identified by the Town of Hudson for heavy industrial uses. As cited in Section 22-3-10.A, "the effective and efficient delivery of adequate public service is one of the primary purposes and benefits of effective land use planning." Furthermore, Section 22- 3-10.D states, "one of the basic objectives of the County is to plan and coordinate a timely, orderly, and efficient arrangement of public facilities and services." Public Facilities and Service Goals as referenced in Section 22-3-50.A.1 (P.Goal 1) states "... to promote efficient and cost effective delivery of public facilities and services." Further, Section 22-3-50.B.1 (P.Goal 2) "... requires adequate facilities to ensure the health, safety and general welfare of the present and future residents of the County." The proposed Power Generation Facility, including the 107-acre Well Field site, and approximately an eight-mile long Gas Pipeline, and an approximately 22-mile Water Pipeline and agricultural uses allowed as a Use by Right have been reviewed and the attached Development Standards and Conditions of Approval will ensure protection of the health safety and welfare of the residents and the County. b. Section 23 2 220.A.223-2-230.8.2 --The proposed use is consistent with the intent of the A (Agricultural) Zone District. Section 23-3-310.B.1 of the Weld County Code provides for a use permitted as a Use by Right and Accessory Use or a Use by Special Review in the Industrial Zone District for a Power Generation Facility. The attached Development Standards and Conditions of Approval will mitigate impacts to the surrounding community. Well Field site activities are considered as a use clearly incidental and accessory to the operations of a Use Allowed by Right in the A (Agricultural) Zone District. 2002-0143 PL1582 SPECIAL REVIEW PERMIT #1339 - ROCKY MOUNTAIN ENERGY CENTER, LLC PAGE 4 Drafted by the Clerk to the Board Additionally, one residential structure is located on each parcel. Both these structures are viewed as principal structures and are a Use by Right. c. Section 23 2 220.A.323-2.230.8.3-- The uses which will be permitted will be compatible with the existing surrounding land uses. The Power Generation Facility property is contiguous with the Town of Hudson's municipal boundary, and as such, is directly contiguous with the Town's Industrial Park. A Waste Water Treatment Facility has been planned for a portion of the adjoining industrial park. Other industrial applications are occurring adjacent to the Power Generation Facility site. Several large agricultural operations surround the site in all directions. Many of these farming operations have been approved through the Use by Special Review process. The Town of Hudson reviewed this application and found no conflicts with its interests. The Town of Keenesburg also reviewed this application and found no conflicts with its interests, but did suggest the need to enter into a Water Agreement with the applicant. The Well Field site is located in a predominately agricultural area. Surrounding land uses are in agricultural production. The introduction of the wells will not adversely effect the visual appeal of the site. The Town of Kersey reviewed the application and did not respond. d. Section 23 2-220.A.123-2-230.B.4 -- The uses which will be permitted will be compatible with future development of the surrounding area as permitted by the existing zoning and with the future development as projected by Chapter 22 of the Weld County Code and any other applicable code provisions or ordinances in effect, or the adopted Master Plans of affected municipalities. The Towns of Hudson and Keenesburg reviewed this application and found no conflict to their interests. The Power Generation Facility site location is outside of the Town of Keenesburg's Intergovernmental Agreement Area and the Town of Kersey's Intergovernmental Agreement Area does not include the Well Field site location. e. Section 23 2 220.A.&23-2-230.B.6 -- The applicant has demonstrated a diligent effort to conserve prime agricultural land in the locational decision for the proposed use. The area within the Use By Special Review area has been designated as "Prime if Irrigated" and "Non-prime", by the Important Farmlands of Weld 2002-0143 PL1582 SPECIAL REVIEW PERMIT #1339 - ROCKY MOUNTAIN ENERGY CENTER, LLC PAGE 5 Drafted by the Clerk to the Board County, dated 1979. A portion, 545 acres, of the Power Generation Facility site has been designed to preserve existing farmland and environmentally sensitive areas. The Department of Planning Services staff is recommending that the Use by Special Review boundary of the plant site be modified to correlate with the property ownership. This modification is listed as Condition of Approval #3.A.3 and ensures that the existing agricultural buffer area will be associated with the Power Ceneration Facility site activities. Due to well site activities, ten acres of the Well Field site will be disturbed and the existing agricultural land uses will continue. The existing farm house will be used as a primary dwelling. Further, on both sites the existing agricultural use will be maintained by the use of the water rights presently associated with the farming practices on both sites. f. Section 23 2 220.A.723-2-230.B.7 -- The Design Standards (Section 23-2-240, Weld County Code), Operation Standards (Section 23-2-250, Weld County Code), Conditions of Approval and Development Standards ensure that there are adequate provisions for the protection of the health, safety, and welfare of the inhabitants of the neighborhood and County. The Weld County Sheriff's Office and the Hudson Fire District reviewed this application and found no conflicts with their interests. The Colorado Department of Transportation declined to comment. The Weld County Department of Public Health and Environment reviewed this application and recommended approval with the attached Conditions of Approval which will ensure the safety and welfare of the inhabitants of the County are maintained. NOW, THEREFORE, BE IT RESOLVED by the Board of County Commissioners of Weld County, Colorado, that the application of Rocky Mountain Energy Center, LLC, for a Site Specific Development Plan and Use by Special Review Permit #1339 for a Use by Right, an Accessory Use, and a Use by Special Review in the Industrial Zone District (Power Generation Facility, including two heat recovery steam generator/combustion turbine generator exhaust stacks approximately 175 feet in height, one auxiliary boiler stack approximately 120 feet in height, and two heat recovery steam generators the dimensions of each being approximately 90 feet tall by 150 feet long by 40 feet wide, a 107-acre Well Field site, an approximately 8-mile long Gas Pipeline and an approximately 22-mile Water Pipeline and Agricultural Use by Right in the A (Agricultural) Zone District on the parcel of land described above be, and hereby is, granted subject to the following conditions: 2002-0143 PL1582 SPECIAL REVIEW PERMIT #1339 - ROCKY MOUNTAIN ENERGY CENTER, LLC PAGE 6 Drafted by the Clerk to the Board 1 . The attached Development Standards for the Use by Special Review Permit shall be adopted and placed on the Use by Special Review Plat prior to recording. The completed plat shall be delivered to the Weld County Department of Planning Services and be ready for recording in the Weld County Clerk and Recorder's Office within 60 days of approval by the Board of County Commissioners. Extension beyond this time may be administratively granted. 2. Prior to Scheduling BOCC Hearing A. The applicant shall resubmit a complete set of case maps, utilizing a consistent scale either 1:100 or 1 :200,, for a plat of the plant facility and Well Field site and all maps shall be labeled and numbered. 3. Submitted to the Department of Planning Services 10 days prior to BOCC Hearing: A. The applicant shall either submit a copy of an agreement with the property's mineral owner/operators stipulating that the oil and gas activities have been adequately incorporated into the design of the site or show evidence that an adequate attempt has been made to mitigate the concerns of the mineral owner/operators. The plat shall be amended to include any possible future drilling sites. Section 22 5 100.A of the Weld County Code states "oil and gas exploration and production should occur in a manner which minimizes the impact to agricultural uses and the environment and reduces the conflicts between mineral development and current and futuro surface uses." Section 22-5, 100.B of the Weld County Code states "...encourage cooperation, coordination and communication between the surface owner and the mineral owner/operators of either the surface or the mineral estate." Finally, Section 22 5 100.B.1 of the Weld County Code states "new development should be planned to take into account current and future oil and gas drilling activity to the extent oil and gas development can reasonably be anticipated." B. The applicant shall submit in the Class I Cultural Resource Survey conducted through a third party.- Findings of this study shall be incorporated into the design of both sites. C. The applicant shall submit a Notice of Proposed Construction to the FAA pursuant to 14 CFR Part 77 and provide evidence of such filing, to the Department of Planning Services. /ra" 4r Prior to recording the Plat 2002-0143 PL1582 SPECIAL REVIEW PERMIT #1339 - ROCKY MOUNTAIN ENERGY CENTER, LLC PAGE 7 Drafted by the Clerk to the Board A. The applicant shall submit the Contingency Plan for review and approval to the Weld County Department of Public Health and Environment, Emergency Management Office, and the Department of Planning Services. B. A Lighting Plan, detailing on and off cite impacts, shall be reviewed and approved by Weld County Department of Planning Services staff. The plan shall incorporate exterior lighting designed with hooded downward illumination. Moved to Section 3 below C. All ditch and irrigation structures shall be identified by name and a copy of all irrigation and ditch agreements shall be included in the record. D. The applicant shall comply with any requirements cited from the Cultural Resource Study. E. A defined parking area on the plant facility and Well Field site shall be identified. The parking areas shall meet the parking requirements of Appendices 23.A and 23.B of the Weld County Code. F. The applicant shall submit the appropriate Air Pollution Emission Notice (A.P.E.N.) and an Emissions Permit application to the Air Pollution Control Division of the Colorado Department of Public Health and Environment for the power plant facility and the construction of the gas and water lines. Furthermore, the applicant shall submit evidence of application to the Department of Planning Services. G. The applicant shall obtain a Storm Water Discharge Permit from the Colorado Department of Public Health and Environment, Water Quality Control Division, for the construction of the Well Field, gas and water lines, and the construction and operation of the Power Generation Facility and Well Field Site, if applicable. Submit evidence of approval/compliance to the Department of Planning Services. Moved to Section 3 below H. The applicant shall provide evidence to the Weld County Department of Public Health and the Environment that any existing or constructed well(s) have been appropriately permitted/registered with the Colorado Division of Water Resources. Submit evidence of approval/compliance to the Department of Planning Services. 2002-0143 PL1582 SPECIAL REVIEW PERMIT #1339 - ROCKY MOUNTAIN ENERGY CENTER, LLC PAGE 8 Drafted by the Clerk to the Board The facility shall provide evidence that all waste treatment and disposal systems are designed to meet the "Zero Liquid Discharge" criteria described in the application materials. The systems shall be designed by a registered professional engineer. All waste water treatment systems shall comply with all applicable rules and regulations. The applicant shall submit evidence of approval/compliance to the Department of Planning Services. J. The applicant shall supply a Storm Water Drainage Report in accordance with Section 23 2 210 A.5. The storm water management during construction will be controlled through the use of grading, retention ponds, staked hay bales, and other erosion control techniques. Submit evidence of approval/compliance to the Department of Planning Services. Moved to Section 4 below K. The applicant shall provide evidence to the Department of Planning Services of an agreement between the applicant and the Burlington Northern Railroad for the installation of signals and gates at the railroad crossing on Weld County Road 51 and Weld County Road 16, if needed. L. The applicant shall submit a Weed Management Plan to the Department of Public Works and receive approval. Furthermore, the applicant shall submit evidence of approval/compliance to the Department of Planning Services. M. The applicant shall adhere to the improvements and maintenance activities for Weld County Road 51, as specified in the November 5, 2001, Memorandum from Weld County Department of Public Works. N. The applicant shall provide evidence of approval from the Colorado Department of Transportation regarding improvements for 1-76 Frontage Road and the 1-76/Weld County Road 49 interchange and construction activities. O. The applicant shall receive approval for use of right of way in accordance with the County utility permitting process. The standard for installation on any gravel roads shall be to return the road to a width of 2/ feet with 3:1 fore slopes and a minimum of 4 inches of compacted Class 6 gravel or the existing width and depth whichever is greater. The standard for paved roads shall be the width of the existing roadway. Moved to Section 3 r below 2002-0143 PL1582 SPECIAL REVIEW PERMIT #1339 - ROCKY MOUNTAIN ENERGY CENTER, LLC PAGE 9 Drafted by the Clerk to the Board 3. Prior to commencement of construction activities to which the requirement relates: B. A Lighting Plan, detailing on and off site impacts, shall be reviewed and approved by Weld County Department of Planning Services staff. The plan shall incorporate exterior lighting designed with hooded downward illumination G. The applicant shall obtain a Storm Water Discharge Permit from the Colorado Department of Public Health and Environment, Water Quality Control Division, for the construction of the Well Field, gas and water lines, and the construction of the Power Generation Facility and Well Field Site, if applicable. Submit evidence of approval/compliance to the Department of Planning Services O. The applicant shall receive approval of use of right-of-way in accordance with the County utility permitting process. The standard of installation on any gravel roads shall be to return the road to a width of 24 feet with 3:1 fore slopes and a minimum of 4 inches of compacted Class 6 gravel or the existing width and depth whichever is greater. The standard for paved roads shall be the width of the existing roadway. 5.4,. Prior to issuance of Certificate of Occupancy A. In the event the well site maintenance building or any structure located on the power plan property is equipped with a floor drain, the applicant must apply for an Underground Injection Control (UIC) Class V Injection Well permit through the Environmental Protection Agency, or provide evidence that the applicant is not subject to this requirement. Submit evidence of approval to the Department of Planning Services. B. All septic systems located on the property shall have appropriate permits from the Weld County Department of Public Health and Environment. Any existing Septic system(s) which is not currently permitted through the Weld County Department of Public Health and Environment will require an I.S.D.S. Evaluation prior to the issuance of the required septic permits. In the event the system(s) is found to be inadequate, the system(s) must be brought into compliance with current regulations. Submit evidence of approval/compliance to the Department of Planning Services. 2002-0143 PL1582 r SPECIAL REVIEW PERMIT #1339 - ROCKY MOUNTAIN ENERGY CENTER, LLC PAGE 10 Drafted by the Clerk to the Board C. An I.S.D.S. or Package Sewage Treatment Plant shall be installed at the Power Plant to treat sanitary wastes. In the event a septic system is installed, it shall be designed and installed according to the Weld County I.S.D.S. Regulations. In the event a package plan is the chosen method of treatment for sanitary wastes, the plan shall comply with all requirements of the Water Quality Control Division of the Colorado Department of Public Health and Environment. Submit evidence of approval/compliance to the Department of Planning Services. D. The applicant shall provide evidence that a permanent, potable water supply has been obtained to serve the power plant that complies with the Colorado Primary Drinking Water Regulations (5 CCR 1003-6). Submit evidence of approval/compliance to the Department of Planning Services. J. The applicant shall supply a Storm Water Drainage Report in accordance with Section 23-2-204.A.5. Submit evidence of a nrnval/compliance to the Department of Planning Services. The above and foregoing Resolution was, on motion duly made and seconded, adopted by the following vote on the 6th day of February, A.D., 2002. BOARD OF COUNTY COMMISSIONERS WELD COUNTY, COLORADO ATTEST: Glenn Vaad, Chair Weld County Clerk to the Board David E. Long, Pro-Tem BY: Deputy Clerk to the Board M. J. Geile APPROVED AS TO FORM: William H. Jerke County Attorney Robert 0. Masden Date of signature: 2002-0143 PL1582 Drafted By The Clerk To The Board SITE SPECIFIC DEVELOPMENT PLAN USE BY SPECIAL REVIEW PERMIT DEVELOPMENT STANDARDS ROCKY MOUNTAIN ENERGY CENTER, LLC USR #1339 1. The Use by Special Review activity shall not occur, nor shall any building or electrical permits be issued on the property, until the Use by Special Review plat is ready to be recorded in the office of the Weld County Clerk and Recorder. 2. The Site Specific Development Plan and Use by Special Review Permit is for a Use by Right, an Accessory Use, or a Use by Special Review in the Industrial Zone District (Power Generation Facility, including a 107-acre Well Field site, an approximately eight-mile long Gas Pipeline and an approximately 22-mile Water Pipeline) in the A (Agricultural) Zone District, as indicated in the application materials on file and subject to the Development Standards stated hereon. In accordance with the application, the REMEC design will preserve a significant amount of farmland and environmentally sensitive area of the Power Generation Facility property for the term of the Use by Special Review Permit. r 3. Approval of this plan may create a vested property right pursuant to Section 23-8-10 of the Weld County Code. 4. The applicant shall supply an approved water agreement demonstrating that adequate water can be made available to the site for a 30-year period. oc change the terms of the Use by-Special Review Permit to ten years. This information shall be provided to the Department of Planning Services two years prior to the expiration of the agreement with the City of Aurora. 5. All liquid and solid wastes, as defined in the Solid Wastes Disposal Sites and Facilities Act, Section 30-20-100.5, C.R.S., shall be stored and removed for final disposal in a manner that protects against surface and groundwater contamination. 6. No permanent disposal of wastes shall be permitted at this site. 7 Waste materials shall be handled, stored, and disposed in a manner that controls fugitive dust, blowing debris, and other potential nuisance conditions. 8. Fugitive dust shall be controlled on this site. 9. The facility shall adhere to the maximum permissible noise levels allowed in the Industrial Zone District as delineated in Section 25-12-103, C.R.S. 10. Adequate toilet facilities shall be provided for employees and the public. DEVELOPMENT STANDARDS - ROCKY MOUNTAIN ENERGY CENTER, LLC (USR #1339) PAGE 2 Drafted by the Clerk to the Board r 11. The applicant shall provide adequate toilet facilities (Port-A-Potty) during the construction of phases of the project. 12. The facility shall provide bottled water for drinking during construction of the project. 13. The facility shall maintain compliance with all requirements of the Water Quality Control Division of the Colorado Department of Public Health and Environment. 14. The power plant shall be equipped with an adequate water supply for drinking and sanitary purposes. The water supply shall comply with all applicable portions of the Colorado Primary Drinking Water Regulations (5 CCS 1003-6). 15. The facility shall operate as a "Zero Liquid Discharge" site. With the exception to sanitary wastes, no liquids shall be disposed into the earth. 16. The facility shall not impact off-site air temperatures. 17. The facility shall adhere to all rules and regulations of the Air Pollution Control Division of the Colorado Department of Public Health and Environment. 18. The landscaping on site shall be maintained in accordance with the approved Landscape Plan. 19. The property owner or operator shall be responsible for complying with the Design Standards of Section 23-2-240, Weld County Code. 20. The property owner or operator shall be responsible for complying with the Operation Standards of Section 23-2-250, Weld County Code. 21 . There will be no staging or parking of equipment or vehicles on Weld County roads adjacent to the proposed facilities. Only on-site parking shall be utilized for this activity. All access drives and parking areas shall be surfaced with asphalt or equivalent and shall be graded to prevent drainage problems. 22. All new buildings will require review and building permit approval. Plans for buildings and foundations shall be designed by a Colorado professional architect or engineer. 23. Hours of operation for construction of the facility shall occur Monday through Saturday from 6:00 a.m. to 6:00 p.m., with the understanding that commission time of the plant there may be a need for 24 hours on occasion. 24. Pursuant to Section 404 of the Clean Water Act, the Department of the Army shall be notified if any work associated with this project requires the placement of dredge or fill materials, and any excavation associated with a dredge or fill project, either temporary or permanent, in waters of the United States. 2002-0143 PL1582 DEVELOPMENT STANDARDS - ROCKY MOUNTAIN ENERGY CENTER, LLC (USR #1339) PAGE 3 Drafted by the Clerk to the Board 25. In accordance with Section 23-2-200.E of the Weld County Code, if the Use by Special Review has not commenced from the date of approval or is discontinued for a period of three (3) consecutive years, it shall be presumed inactive. The County shall initiate an administrative hearing to consider whether to grant an extension of time to commence the use or revoke the Use by Special Review. If the Use by Special Review is revoked, it shall be necessary to follow the procedures and requirements of Division 4 of the Weld County Code in order to reestablish any Use by Special Review. 26. Personnel from the Weld County Departments of Public Health and Environment, Public Works, and Planning Services shall be granted access onto the property at any reasonable time in order to ensure the activities carried out on the property comply with the Development Standards stated herein and all applicable Weld County regulations. 27. The Use by Special Review area shall be limited to the plans shown hereon and governed by the foregoing standards and all applicable Weld County regulations. Substantial changes from the plans or Development Standards as shown or stated shall require the approval of an amendment of the Permit by the Weld County Board of County Commissioners before such changes from the plans or Development Standards are permitted. Any other changes shall be filed in the office of the Department of Planning Services. 28. The property owner or operator shall be responsible for complying with all of the foregoing Development Standards. Noncompliance with any of the foregoing Development Standards may be reason for revocation of the Permit by the Board of County Commissioners. 29. If necessary, the applicant shall supply a Water Augmentation Plan approved by the Water Court within 30 days of such Water Court approval. 2899458_1.0O0 2002-0143 PL1582 Johnny Suarez, Executive Secretary-Treasurer Michael P Kuberski, President Jws P. Gleason, Vice President P_>E E t G I(MFPS n IP/ -i MOUNTAIN WEST REGIONAL ,; t: ?2 \( COUNCIL OF CARPENTERS _ '" . Glenn Vaad Weld County Commissioner, District 2 915 Tenth Street Greeley, CO 80632 February 5, 2002 Dear Sir, On behalf of the eighty-nine working families of Weld County that we represent, this correspondence is being sent to voice our concerns over the proposed construction of the Rocky Mountain Energy Center by Calpine. Our concerns are not over the development and construction of the proposed facility, however, they are generated around the selection of the prime contractor. At various neighborhood and County meetings, Calpine's Director, David Perkins, has repeatedly stated the construction schedule and manpower requirements for this project, while at the same time implying that this work would be done by Weld County and Colorado residents. Calpine's front-runner for the construction of this project is TIC, The Industrial Company, whose reputation is suspect at best. TIC's reliance on a low wage and out of state work force is not beneficial to the residents and communities of Weld County and Colorado as a whole. Scandals run rampant through the national news today surrounding Power Generation Companies bilking their employees and investors while making absurd profits. We are asking you personally to ensure that this does not happen with this project and that Weld County and Colorado residents are assured employment with a responsible contractor that pays prevailing rate, provides health care,pension, annuity, and training. Who should benefit more from this project: Weld County and Colorado residents or out of state workers who have no ties or obligation to the community? Sincerely, EXHIBIT Michael Malecki Representative 303.944.1208 USe#l33q J 1021 Cardenas Drive N.E. J 5155 East 39th Ave. J 8149 S.Welby Park Drive Albuquerque,New Mexico 87110 Denver,Colorado 80207-1108 West Jordan. Utah 84088 Phone(505)256-3396 Phone(303)355-8774 Phone(801)280-0292 Fax(505)268-9066 Fax(303)355-1092 Fax(801)280-0655 Violations Page 1 of 4 '"'" „ LASER, Inc, libil * - Legal and Safrtjr EaphrperReads Researching and Reporting on Contractors Nationwide al Mal in a In= MEM Ella Mal OSHA VIOLATIONS a OSHA FINDS THAT TIC'S CONSTRUCTION its,-7.i: MISTAKES CAUSED STEAM PIPELINE EXPLOSION Saguaro Power contracted with TIC to construct a steam line from the Edison Mission Saguro Power Plant to the nearby Ocean Spray 11.1111 facility in Henderson, Nevada. TIC "failed to insure that the (pipeline) components" were properly "ordered manufactured and tested. The (pipeline's) flexible metal hoses ... did not meet the design specifications... " As a result, the steam line exploded when it was being tested, leaving 100 feet of warped and buckled pi eline. TIC "failed to insure OSHA issued a serious violation and that the materials proposed a $1 ,500 fine against TIC for this rod components met' serious violation. The OSHA citation engineering against TIC stated that the "hose standarrds... assemblies did not meet the engineer's specifications to have double braid steel netting" and launched an investigation into the explosion. OSHA found that two other pipeline failures had not even been reported to OSHA. OSHA also found that the metal hose on the pipeline "had braiding that had been cut short and did not get welded to the mating flange" and that TIC "failed to insure that the materials and components met engineering standards ... during the construction process, which resulted in the rupture of three flexible metal hose assemblies that were an essential component of the steam pipeline while in operation." During the other pipeline failures "the flex hose assembly ... had http://www.laser-inc.com/critic/tic/apr01/osha.htm 12/13/01 Violations Page 2 of 4 burst, causing major damage to the steam line supports" at the Saguro Power Plant. "The use of these hoses in this application may not be correct. There appears to be a major disconnect between the (pipeline) designer's intent and the way the procedure was interpreted in the field," noted the Saguro accident reports. OSHA ISSUES VIOLATIONS, LEVIES FINES OVER TIC EMPLOYEES LABORING IN THE BOTTOM OF A SEVENTEEN-FOOT TRENCH Collapsing trenches are one of the deadliest features at construction sites and TIC has been cited many times for forcing its employees to work at the bottom of unsupported trenches. Recently, OSHA discovered yet another instance of a TIC trench violation near Aurora, Colorado. ERS, a pipeline subsidiary of TIC, was cited and fined for multiple violations. The inspection documents released under the Freedom of Information Act show that a competent person did not design the excavation and inadequate ladders were used. TIC gave OSHA additional documents, but the paperwork showed that TIC had inspected the trench only after the OSHA violations were issued. OSHA's review concluded that "Cave-ins could and have resulted in serious physical harm to employees, up to and including death, and inadequate preventative action was taken." Recently, OSHA Recently, OSHA proposed a $35,000 against proposed a TIC for a repeated trench violation in Morrison, $35,000 against Colorado. In that inspection, OSHA noted "(TIC) TIC fora has a safety program, however it obviously is repeated trench not being used." OSHA records show that TIC ',aviation in was previously cited for trench violations at the Morrison, CF & I Steel Mill in Pueblo, Colorado. Colorado- TIC FINED $10,000 FOR SECOND SERIES OF ASBESTOS VIOLATIONS Every person involved in the construction industry knows that highly toxic asbestos has to be handled carefully. That makes TIC's illegal handling of asbestos during March 1999 in Hayden, Colorado at the Public Service Department of the Colorado Power Plant, inexcusable. OSHA, in response to a Freedom of Information Request, revealed that: TIC has conducted asbestos work... "without establishing a regulated area. Employees removed asbestos containing electrical cable, http://www.laser-inc.com/critic/tic/aprO1/osha.htm 12/13/01 Violations Page 3 of 4 with ratchet cutters and a reciprocating saw, in the main control room of the power plant. (TIC) ... had a workplace ... where exposure monitoring was required ...(but) did not perform monitoring to determine accurately the airborne concentrations of asbestos. The Class III asbestos work was conducted without the required exposure assessment done by a competent person. Asbestos work was not conducted using engineering and work practice controls that minimized the exposure to employees." ing to;The OSHA inspection reported noted that: an OSHA inspection, "(TIC) did not make a good faith effort to "Asbestos ''beat bulk sampling reports for asbestos work was and even when they were told to watch out not ';for asbestos, they never looked into the conducted possibility of asbestos being in the areas [sing !;where they were working. TIC (was) ... not engineering 'sure how many employees they had and work prate r Is that' minimized the exposure to em ': exposed to asbestos ... they were exposed in the main control room of the plant. TIC never made any effort to get bulk sampling reports and even after their employees were potentially exposed to asbestos ... on Unit#1 outage, they had employee exposures on Unit #2 outage." As a result, TIC employees were exposed to asbestosis, mesothelioma and other cancer risks. TIC's site manager admitted he didn't know if anyone looked for asbestos before the work was started, even though TIC was notified about the asbestos before the exposure took place. The site manager also admitted to OSHA that TIC was informed about the presence of asbestos on the job site. OSHA proposed $10,000 in fines against TIC. An aggravating factor was that OSHA had caught TIC in 18 asbestos violations, just five http://www.laser-inc.coni/critic/tic/aprO1/osha.htm 12/13/01 Violations Page 4 of 4 months earlier. OSHA fined TIC $4,125 in those violations. That same month, OSHA also issued violations against TIC in Montana, for additional cases where TIC exposed their own workers to toxic materials at the Stillwater Mine site. MSHA also cited and fined TIC at this same job site for 5 violations. SW.- http://www.laser-ine.com/critichic/aprOl/osha.htm 12/13/01 Nation Page 1 of 2 LASER, Inc. Legal and Safety Employer Rneara l Researching and Reporting on Contractors Nationwide In Mal MI Sal Sal Ma saw TIC A CROSS THE NATION Questions about TIC's reputation are hurting TIC's clients at four power plant construction �r sites , More power plants are under construction in the United States than ch .�_� h ,,Q� ever before throughout the nation's history. TIC-The Industrial Company is one of the beneficiaries of this construction boom. TIC is currently working on or about to start on, four different power plant jobs in Oregon, Minnesota, Arizona and Mississippi. TIC's reliance on a TIC brings baggage to these power plant iowr-wage and out jobs. TIC's reliance on a low-wage and out of of state work force state work force may cut TIC's costs, but this may cut nc's tactic frequently angers the local community. casts" but this Many local workers and their politicians tactic frequently count on the jobs that the power plant angers the local construction jobs will create for the local community. community, not more jobs for TIC's imported work crew. When the local community sees few local construction workers being hired, they often become angry. It is TIC's construction customer, the power plant owner, who bears the brunt of the community outrage. This frequently takes the form of challenges to the power plant's siting certificate and its environmental permits, as citizen complaints prompt additional regulatory scrutiny of the facility. The following are details about each state where TIC is involved or soon to be http://www.laser-inc.com/critic/tic/aprO1/nation.htm 12/13/01 Nation Page 2 of 2 involved in power plant construction jobs. Minnesota TIC's importation of most of its work force into rural Minnesota for the construction of the Lakefield Junction Power Plant, owned by NRG and Tenaska, triggered challenges to the project's site certificate and wastewater disposal plans. Local activists have objected to the power plant's decision to truck its wastewater to a nearby city sewer treatment plant, since this alternative was not fully discussed in the power plant's siting certificate hearings. Local citizens have also criticized the proposed plant's air pollution rates. The city of Trimont's mayor, who voted to approve the plant, later performed electrical work, as a subcontractor for TIC. Now he has come under intense fire by his constituents for this apparent conflict of interest. Oregon Calpine hired TIC to build the Hermiston Power Project. Local citizens surveyed the TIC employees' parking lot and discovered that 80% of the workers were from out of state. Now they have hired an attorney and have filed legal challenges to Calpine's power plant site certificate amendments. In other words, Calpine must face a lengthy legal challenge due to local anger over their hiring of TIC, because of the large number of TIC's out of state workers. Arizona Tucson Electric hired TIC to build its Demoss Petrie Generating Station. The next thing Tucson Electric knew, angered Tucson area residents had mounted a detailed challenge to the conditions of their air pollution permit. Regulatory authorities, which were alerted by the Tucson residents, responded by significantly tightening the terms of the permit and requiring reductions in the pollution rates. Mississippi Jackson County Sheriffs Department arrested a TIC supervisor at Mississippi Power Company's Daniels Plant, for possession of methamphetamines with intent for distribution. This has caused a considerable amount of local concern. 0000 http://www.laser-inc.cotn/eritic/tic/apr0l/nation.htm 12/13/01 Source Notes Page 1 of 2 . .. LASER, Inc. Lr axe!Safety F.asployer/te+ rra r Researching and Reporting on Contractors Nationwide in in IlEal n4 US SS Ma MS rt sal SOURCE NOTES OSHA Violations and Newspaper Articles IIMIM TIC Crane Accident Cuts Power for 14,000 Georgia Residents: Savannah Morning News, December 5, 2000 t _ _+c:; OSHA Finds that TIC's Construction Mistakes Caused Stem Pipeline Explosion: OSHA Inspection #300766060, Complaint#75238279 OSHA Issues Violations, Levies Fines Over TIC Employees: OSHA Inspection #301304143, #116184854, #2575587 TIC Fined $10,000 for Second Series of Asbestos Violations: OSHA Inspection #302764212 & Case #99-1226 Colorado Court Cases Drake V TIC: Case #CV2437, El Paso County Court Mountain West V TIC: Case #CV1919, Boulder County Court City of Littleton V Western Summit: Case #CV3943, Arapahoe County Court Western Summit V Aluminum Specialties: Case #CV0467, Denver County Court Western Summit V C&C of Denver: Case #CV2914, Denver County Court Wagner Equipment V Western Summit: Case #CV0007, Montrose County Court Two Brothers Mining Company V Western Summit: Case #CV0046, Clear Creek County Court http://www.laser-inc.corn/critic/tic/aprOl/source_notes.htm 12/13/01 Source Notes Page 2 of 2 Drew V TIC: Case #CV0034, San Miguel County Court Hunter V TIC: Case #CV0265, San Miguel County Court Western Summit V Caddell: Case #CV5026, Denver County Court Federal Court Cases TCDI -The Concrete Doctor, Inc. V TIC: Case #CV2001 in Aiken, South Carolina TIC V Allied Steel: Case # CV0005 in Savannah, Georgia Performance Contracting V TIC: Case #CV0574 in Milwaukee, Wisconsin National Gypsum V TIC, Others: Case #CV0160 in Tulsa, Oklahoma TIC V The Industrial Water Board: Case #CV0218 in Blount County, Alabama Porras V Western Summit: Case #1615 in El Paso County, Texas Lucas V TIC Others: Case #CV 0085 in Cheyenne, Wyoming Coleman V Western Summit: Case #CV0698 in Phoenix, Arizona Harper V Western Summit: Case #0200 in Tulsa, Oklahoma TIC Southeast V Ocean Surveys: Case #CV0212 in Savannah, Georgia Past and Present PASHA TIC's Past Construction Violations Problems http://www.msha.gov Case #94-1203 http://www.laser-inc.com/critic/tic/apr0l/source_notes.htm 12/13/01 Mike Geile- Rocky Mountain Energy Center(proposed) Page 1 From: <Irish1811@aol.com> To: <mgeile@co.weld.co.us> Date: 2/3/02 7:22PM Subject: Rocky Mountain Energy Center(proposed) "HUGE CALIFORNIA ENERGY CORPORATION STEAMROLLS OVER LONG-TIME WELD COUNTY RESIDENTS" Are you going to allow this to be the headline? Categorically, I am opposed to Calpine's Rocky Mountain Energy Center being located near Hudson on the basis of its negative impact on 1) the lives and property values of neighboring residents, 2)agricultural production, and 3) natural environment. Specifically, if you do grant the Special Use Permit, I hear you will be requiring Calpine to pave Road 51, between 176 and Hwy 52. This will not be nearly enough to accomodate 300 commuting workers and numerous deliveries during the 2-year construction period. I ask that you also require Calpine to 1) pave Road 16, 2) install stop lights at the intersection of 16 and 51, 3) post and enforce speed limits, and 4) post and enforce littering bans. Minimally, I expect safety and sanitation from elected representatives. In closing, I ask you to examine Calpine's self-proclaimed "good-neighbor" policy. Did Calpine even seriously look at other sites? less-populated sites? I've not heard of one by name or address. Why did Calpine wait over a year, putting immediate neighbors through stress and anxiety, before even beginning to contact them about possible compensation? Calpine may not be legally bound, but it is morally bound for greatly disturbing lives. It should live up to its reputation and follow past corporate practices. Thank you for your consideration of my concerns, Mary Ann Grattan Chinn, Weld County resident for 37 years CC: <rmasden@co.weld.co.us>, <bjerke@co.weld.co.us>, <dlong@co.weld.co.us>, <gvaad@co.weld.co.us>, <JDriveln@aol.com> EXHIBIT us2 LASER, INC LEGAL AND SAFETY EMPLOYER RESEARCH 654 Kentucky Street, Gridley, CA 95948 (P)530-846-6352 (F)530-846-5274 e-mail: laserinc@manznet.com A NONPROFIT MUTUAL BENEFIT CORPORATION January 25, 2002 VIA FAXSIMILE&USPS Bill Coleman, President Weld County Planning Department Colorado Energy Management GREELEY OFFICE 2575 Park Lane, Ste. 200 JAN z 9 2002 Lafayette, CO 80026-3172 RECEIVED Dear Mr. Coleman: It has come to LASER's attention that Colorado Energy Management may be considering using the services of TIC (The Industrial Company) at your proposed Pawnee Power Plant Upgrade Project. Enclosed you will again find information about TIC's business practices and impacts to local communities. It concerns LASER that Colorado Energy Management will expose communities and workers to increased crime, discrimination and safety problems by using the services of TIC on your Pawnee Project. Enclosed are copies of The Constructors Critic with in-depth information on TIC. As LASER's publication points out, TIC's safety record, as presented by them, is not reliable. Any TIC employee that becomes injured on your project may have grounds to sue Colorado Energy Management for negligence, based on the fact that you now have prior knowledge of potential safety problems associated with this contractor. You should exercise added precautions in regard to TIC's safety on your jobsite. Your decision in this matter could also have an impact on crime rates and services in the surrounding communities. LASER requests that Colorado Energy Management meet with local elected officials to discuss means in which your project could minimize any increase in crime and other negative impacts that the community may be exposed to through the use of TIC. If and when TIC commences work on this project, LASER will have a moral obligation to inform the public about these important issues. LASER will distribute the enclosed flyer to employees who may work or are working at this facility to ensure that they are aware of these issues. LASER will also distribute information to residents of the surrounding communities to keep them informed of the impacts a project such as this can have on them and their families, such as increases in crime rates and social services i.e., county hospitals, schools, traffic and welfare. One of the most flagrant problems TIC has is a history of discriminating against minorities in hiring for construction projects. Enclosed is a recent press release from the New Orleans office of the Equal Employment Opportunity Commission (EEOC), announcing the EEOC's lawsuit filed in the US District Court in New Orleans, charging TIC with violating TITLE VII of the Civil Rights Act ^ of 1964 on a nationwide basis since at least 1994, by denying employment to African-Americans in construction positions because of their race. EXHIBIT IS IASC,41?2,1 It has come to LASER's attention that recently a couple of major issues involving TIC in the State of Mississippi have developed. In July of 2000, apparently TIC was fined $13,783 by the State of Mississippi Board of Contractors for bringing an out of state contractor into Mississippi that did not have a valid certificate of responsibility for work in Mississippi. On August 24, 2000, Marcus Webber Richburg, one of TIC's management team members, was arrested at Mississippi Powers Daniels Plant in Jackson County, Mississippi. The Jackson County Sheriffs Department arrested Mr. Richburg for possession of Methane/Amphetamine with the intent to distribute. Illegal drug use at the Mississippi Powers Daniels Plant in Mississippi raises doubts about TIC's commitment to a drug free work environment and continues the history of TIC's problems with illegal drugs associated with many of its projects. LASER believes that Colorado Energy Management should have a strong drug policy in place for all employees that work on your job sites. Colorado Energy Management should only consider responsible, law-abiding contractors for your projects. LASER is a non-profit research organization researching safety, honesty and productivity in the construction industry and believes this information may be of use to you. Should you have any questions or need further information feel free to contact me. Si rely, �^ James L Wilson, President LASER, Inc. Cc: Cindy Serafin,Principal,CO Energy Mgmt. R. D.Bloomer,Dir.,CO Energy Mgmt. Gary Arneson,Mgr.,CO Energy Mgmt. Paul Sprayberry,Eng.,CO Energy Mgmt. Monica Mika,Bldg.Off,County of Weld David Long,Comm.,County of Weld Glenn Vaad, Comm.,County of Weld Rob Masden,Comm.,County of Weld Mike Geile,Comm.,County of Weld Bill Jerke,Comm., County of Weld Joyce Smock, Comm.,County of Weld Doug Rademacher,Comm., County of Weld Jody Malone,Comm., County of Weld Dwaine Kurtz,Comm.,County of Weld Mitch Martin,Comm.,County of Weld Carlos Leal,Member,Greeley City Council Ed Phillipsen,Member,Greeley City Council Don Feldhaus,Member, Greeley City Council Debbie Pilch,Member, Greeley City Council Carrol Martin,Member,Greeley City Council Harry Felderman,Member,Greeley City Council A tl fi: 1,p' 't ,TTc gyp s G 4"'RESIDENTS S F ° I, ' t, is t 1j + 1 y r d TIC (The Industrial Company) is working at the new Hudson Power Plant Project You should be concerned about the hundreds of workers TIC may import into Weld County SOME EXAMPLES OF THE PROBLEMS ASSOCIATED WITH TIC: Racial Problems One of the most flagrant problems TIC has is a history of discriminating against minorities in hiring for construction projects. In June,2001,the New Orleans office of the Equal Employment Opportunity Commission (EEOC),filed a lawsuit in the US District Court in New Orleans, charging TIC with violating TITLE VII of the Civil Rights Act of 1964 on a nationwide basis since at least 1994, by denying employ- ment to African-Americans in construction positions because of their race. TIC Supervisor arrested on job site for drugs A TIC supervisor, Marcus Webber Richburg,was recently arrested for possession of methamphetamines -_with intent to distribute. The Jackson County Sheriffs department arrested him at a TIC construction site for a new Mississippi Power generating facility. This is the latest in continuing allegations of drug use and sales among the TIC work force. TIC workers have been arrested for drug offenses in Alaska, Nevada and California. At least three TIC employees have sued the company recently and their com- plaints include allegations of drug use at TIC, including management. Eureka County, Nevada: In June, 1997, Sheriffs discovered 1050 lbs.of explosive ammonium nitrate and detonators, and arrested two men. The seizure included a partially assembled explosive device. In comparison,about4,000 lbs. of ammonium nitrate was used to blow up the Oklahoma City Federal Building. The cache was found in a trailer park used by employees of TIC. The two arrested men, both ex-felons,were TIC ironworker em- ployees.They had previous convictions for car theft and burglary. TIC/Osborne Criminal? Results of a check of the Alaska Criminal Court records showed that over 25%of TIC/Osboume employees on the Fort Knox Mine Construction job in Fairbanks,Alaska,had arrest records. A significant number(about 100)of the workers had been arrested. Forty four of those since 1994(the post-1994 records were re- viewed). Although TIC/Osboume literature boasts of their stringent drug/alcohol testing in their promotional literature,dozens of the workers had been arrested for possession of marijuana,amphetamine(speed),and sales of cocaine. There were also 24 arrests for drunk driving and other vehicle and alcohol related crimes, 13 arrests for weapons violations,trespass,forgery, robbery,poaching,assault and theft,and five arrests for assault in domestic violence cases. White Pine County: Robinson Copper Mine, NV, crimes were so severe that the local sherrifs frequently joked that TIC stood for"Take'm Into Custody" This joking arose out of events during 1995,when TIC imported about 200 out- of-state workers into this county for the project. The County arrest records reveal that during 1995, one TIC employee was arrested for the County's only murder, another was arrested for drug possession, and six others were arrested for driving while intoxicated, and other charges. Colorado Energy Management is aware that there could be problems with TIC's work force. LASER, INC. (Legal & Safety Employer Research) has written to them about using TIC because of criminal activities involving their work force and safety problems. (See Back)They continue to use TIC anyway. You should contact your Local Elected Officials and demand that they meet with Public Service officials to address the issues of crime and public safety. For more- won , ER 5 Q > 846-�'i ' m LASER INCA On August 24,2000,Marcus Webber Richburg,one of TIC's management team members,seas arrested at Mississippi Powers Daniels Plant in Jackson County,Mississippi.The Jackson County Le al and Safet Em to er Sheriffs Department arrested Mr.Richburg for possession of Methane/Amphetamine with the intent to 9 Y P Y Research distribute. 654 KENTUCKY ST.,GRIDLEY,CA 95948(p)530-846-6352(r)530-846-5274 January 25,2002 A NONPROFP MUTUAL BENEPITCORPORATION Illegal drug use at Mississippi Powers Daniels Plant in Mississippi raises doubts about TIC's commitment to a drug free work environment and continues the history of TIC's problems with illegal VIA FAXSIMILE&USES drugs associated with many of its projects. LASER believes that Colorado Energy Management should have a strong drug policy in place for all employees thal work on your job sites.Colorado Energy Rill Coleman,PresidentManagement should only consider responsible,law-abiding contractors for your projects. Colorado Energy Management LASER is a non- 2575 Park Lane,Ste.200 profit research organization researching safety,honesty and productivity in the Lafayette,CO 10026-1172 construction industry and believes this information may be of use to you. Should you have any questions or need further information feel free to Contact me. Dear Mr.Coleman Sincerely, It has come to LASER's attention that Colorado Energy Management may be considering using the services of TIC(The Industrial Company)at your proposed Pawnee Power Plant Upgrade Project. Enclosed you will again find information about TIC's business practices and impacts to local James L Wilson,President communities. LASER,Inc. It concerns LASER that Colorado Energy Management will expose communities and workers to Cc- Cindy Smafin,Principal,CO Energy Mgmt. increased crime,discrimination and safety problems by using the services of TIC on your Pawnee R.D.Bloomer,Dir CO Energy Mgmt. Project Enclosed are copies of The Constructors Critic with in--depth information on TIC. Gary Areson,Mgr_CO Energy Mgmt. As LASER's publication points out TIC's safety record,as presented by them,is not reliable. Any TIC Paul Sprayberry,Eng.,CO Energy Mgmt. employee that becomes injured onyour Monica Mika,Bldg.Off.County of Weld may have nowle to e sue Colorado te safety problems r Management m David Long,Comm.,County of Weld for associated based c on the fact that you now have prior precautions fin garTIC's safet Glenn Vaad,Comm.,County of Weld jobsi . with this mntrzhis You should exercise added nimpact p ct ntcrin desregard e safety on your k Masde, Comm, y of Weld surru Your mmunit in s this matterrcould alsot Colave on raimpact servicesMianaremeand lathe lMike J rk,Comm_mCCouytoofeldld surrounding tog communities. LASER requests that ouldr o Enze Management meet m ad local negative JoyceB JeSm om Cock, ounty Co mf y of • officials to discuss mans in which your project could minimize any increase in crime and other rte alive Weld impacts that the community may be exposed to through the use of TIC. g Doug Rademacher,Comm.,County of Weld If and when TIC commences work on this project,LASER will have a moral obligation to inform the Jody Malone,Comm.,County of Weld r, public about these important issues.LASER will distribute the enclosed flyer Mitch Run,,Comm,,County of Weld work or are working at this facility to ensure that they are aware of these sues employees LASER will also may Mitch Meal,o Comm.,Crusty City Weld distribute information to residents of the surrounding Carlos Leal,Member,Greeley Council communities increases keep them rime rates a of thesocial impacts Ed Feld lips en.Member,Greeleyle City CoCuncil ncl a project such as this can , ch them and their families,such as in crime and Don i elPitch, Member,Greeley City Council l services i.e.,county hospitals,schools.traffic and welfare. Debbie Pilch,Member,Greeley City Council One of the most flagrant Cerro'Manin,Member,Greeley City Council g problems TIC has is a history of discriminating against minorities in hiring for Harry Felderman,Member,Greeley City Council construction projects. Enclosed is a recent press release from the New Orleans office of the Equal Employment Opportunity Commission(EEOC).announcing the EEOC's lawsuit filed in the US District Court in New Orleans,charging TIC with violating TITLE VII of the Civil Rights Act of 1964 on a • nationwide basis since at least 1994,by denying employment to African-Americans in construction positions because of their race. ATTENTION RESIDENTS OF `WELD CO , COLORADO How Important Is Safety To You? LASER, Inc. STDPRSTAUTO Legal and Safety Employer Research 654 Kentucky St. US POSTAGE PD NONPROFIT Gridley, CA 95948 GRIDLEY CA PERMITS/175 4 TIC-THE INDUSTRIAL COMPANY,ISSUE NO.3 APRIL 2001 L. Contractors Critic Reporting on Safety, Productivity, and Honesty in the Construction Industry. TIC &WESTERN SUMMIT CONSTRUCTORS DRUGS, CRIME & ACCIDENTS = LITIGATION TIC DRUG TRAFFICKING, SAFETY, CONSTRUCTION TIC CRANE ACCIDENT DEFECT AND LITIGATION PROBLEMS CONTINUE CUTS WINTER POWER Construction of power plants is One recent drug-related federal FOR 14,000 GEORGIA booming in the United States and court suit was settled against TIC in RESIDENTS many construction contractors are February 2000. TIC employee The weather was pretty chilly profiting. However some TIC super- Bonnie Shoemaker charged that last December 4, 2000 in eastern visors may be profiting illegally by many TIC employees were angry Georgia, but that was nothing selling narcotics at power plant at her for refusing to take bribes compared to the cold shoulder con- that TIC employees received from struction ' , residents of Tybee, Wilmington sites k '' 'b TIC supervisor, and Whitemarsh Islands in where Chatham County. A TIC-operated "—TIC is �� ' °�` Marcus Webber p vorkin ; Y' T U' Richburg, was . • crane broke a power line leaving TIC g 4t `' recently arrested at nearly 14,000 residents without power for seven hours. The supervi- / as , work for possession outage even forced a Christmas sor, of methamphet- party of 60 to move their celebra- Marcus I ,I ,I l amines with intent ti on. Webber , ,�,,jj,,��,,,,.,,,,� ( to distribute. Richbu`g gil■ _ . ' TIC ACCIDENT CONTINUED ON PAGE 10 .II ewas recently arrested for possession ofmetham- to doctor their drug test results. phetamines with intent to distribute. They retaliated against her. TIC OSHA Violations 2-3 The Jackson County Sheriff's depart- management refused to protect Past OSHA Violations 4 ment ar ested him at Mississippi Shoemaker,despite her complaints. Colorado Litigation 5 Power Daniels Plant where TIC is "Apparently this venom was the currently working. This is the latest in result of her having to administer Federal Litigation 6 continuing allegations of drug use and the company's drug policies and MSHA Violations 7 sales among the TIC work force. TIC employees who didn't like that she Past MSHA Violations 8 workers have been arrested for drug wouldn't take bribes,"said federal TIC Across the Nation 9 offenses in Alaska,Nevada and Department of Labor attorney TIC's Problems 10 California. At least three TIC em- Daniel Preciado. The Department ...ployees have sued the company of Labor levied an anti-discrimination Misc.Information 11 gently and their complaints include order against TIC and Shoemaker Corporate Information 11 allegations of drug use at TIC,includ- also won a settlement against TIC in Source Notes 12 ing management. a privately filed suit. LASER Information 12 OSHA VIOLATIONS OSHA FINDS THAT TIC'S CONSTRUCTION MISTAKES CAUSED STEAM -- PIPELINE EXPLOSION Saguaro Power contracted with TIC to construct specifications to have double braid steel netting" a steam line from the Edison Mission Saguro and launched an investigation into the explosion. Power Plant to the nearby Ocean Spray facility in OSHA found that two other pipeline failures had Henderson,Nevada. TIC "failed to insure that the not even been reported to OSHA. OSHA also (pipeline) components" were properly "ordered found that the metal hose on the pipeline "had manufactured and tested. The (pipeline's) flexible braiding that had been cut short and did not get metal welded to the mating flange" and that TIC "failed TIC "failed to insure hoses ... to insure that the materials and components met that the materials did not engineering standards ... during the construction and components meet the process, which resulted in the rupture of three design flexible metal hose assemblies that were an met engineering specifica- essential component of the steam pipeline while standards ... " lions... " in operation." As a During the other pipeline failures "the flex hose result, the steam line exploded when it was being assembly ... had burst, causing major damage to tested, leaving 100 feet of warped and buckled the steam line supports" at the Saguro Power pipeline. Plant. "The use of these hoses in this application OSHA issued a serious violation and proposed a may not be correct. There appears to be a major $1,500 fine against TIC for this serious violation. disconnect between the (pipeline) designer's The OSHA citation against TIC stated that the intent and the way the procedure was interpreted "hose assemblies did not meet the engineer's in the field," noted the Saguro accident reports. OSHA ISSUES VIOLATIONS,LEVIES FINES OVER TIC EMPLOYEES LABORING IN THE BOTTOM OF A SEVENTEEN-FOOT TRENCH Collapsing trenches are one of the deadliest review concluded that "Cave-ins could and have features at construction sites and TIC has been resulted in serious physical harm to employees, up cited many times for forcing its employees to to and including death, and inadequate preventative work at the bottom of unsupported trenches. action was taken." Recently, OSHA discovered yet another Recently,OSHA instance of a TIC trench violation near Recently, OSHA proposed a $35,000 Aurora, Colorado. ERS, a pipeline subsid- proposed a against TIC for a re- iary of TIC, was cited and fined for mul- $35,000 against peated trench violation tiple violations. The inspection docu- in Morrison, Colorado. ments released under the Freedom of TIC for a repeated In that inspection, Information Act show that a competent trench violation in OSHA noted "(TIC)has person did not design the excavation and Morrison, Colorado. a safety program, how- inadequate ladders were used. TIC gave \ ever it obviously is not OSHA additional documents, but the paperwork being used." OSHA records show that TIC was showed that TIC had inspected the trench only previously cited for trench violations at the CF & I after the OSHA violations were issued. OSHA's Steel Mill in Pueblo, Colorado. OSHA VIOLATIONS CONTINUED ON PAGE 3 Page 2 OSHA VIOLATIONS TIC FINED $10,000 FOR SECOND SERIES OF ASBESTOS VIOLATIONS Every person involved in the construction industry knows that highly toxic asbestos has to be handled carefully. That makes TIC's illegal handling of asbestos during March 1999 in Hayden,Colorado at the Public Service Department of the Colorado Power Plant, inexcusable. OSHA, in response to a Freedom of Information Request,revealed that: TIC has conducted asbestos work... "without establishing a regulated area. Employees removed asbestos containing electrical cable,with ratchet cutters and a reciprocating saw,in the main control room of the power plant. (TIC) ... had a workplace ... where exposure monitoring was required ...(but) did not perform monitoring to determine accurately the airborne concentrations of asbestos. The Class III asbestos work was conducted without the required exposure assessment done by a competent person. Asbestos work was not conducted using engineering and work prac- tice controls that minimized the exposure to employees." The OSHA inspection reported noted that: "(TIC)did not make a good faith effort to beat According to an OSHA bulk sampling reports for inspection, "Asbestos work asbestos and even when they were told to watch was not conducted using out for asbestos, they engineering and never looked into the work practice possibility of asbestos being in the areas where controls that theywereworking. TIC 1 1 / minimized the (was) ...not sure how 1 exposure to many employees they had 87) IrillViresiela employees. II exposed to asbestos ... they were exposed in the • main control room of the plant. TIC never made any effort to get bulk sampling reports and even after their employees were potentially exposed to asbestos ... on Unit#1 outage,they had employee exposures on Unit#2 outage." As a result,TIC employees were exposed to asbestosis,mesothelioma and other cancer risks. TIC's site manager admitted he didn't know if anyone looked for asbestos before the work was started,even though TIC was notified about the asbestos before the exposure took place. The site manager also admit- ted to OSHA that TIC was informed about the presence of asbestos on the job site. OSHA proposed$10,000 in fines against TIC. An aggravating factor was that OSHA had caught TIC in 18 asbestos violations,just five months earlier. OSHA fined TIC $4,125 in those violations. That same month,OSHA also issued violations against TIC in Montana,for additional cases where TIC .exposed their own workers to toxic materials at the Stillwater Mine site. MSHA also cited and fined TIC It this same job site for 5 violations. Page 3 PAST OSHA VIOLATIONS The following is a list of OSHA violations against TIC and Western Summit Constructors. The listings are examples of the lengthy list of OSHA violations against these companies. In only a nine-year period (1990- 1999),TIC and Western Summit obtained over$115,000 in initial OSHA fines totaling over 70 citations! All violations and fine amounts are the initial amounts. These numbers may have been bar- gained down at later dates. Violation # Date Fine Amount Serious Repeat Other Total 302313457 11/19/99 $ 1,950 2 2 302764212 4/29/99 $ 2,500 1 1 301365110 10/22/98 $ 4,125 2 10 12 300766060 9/18/96 $ 1,500 1 1 116184854 8/2/96 $ 3,500 1 1 120328125 8/10/95 $ 5,000 1 1 120213608 12/20/94 $ 5,000 1 1 110534633 8/24/94 $ 20,000 2 1 3 107239253 8/17/94 $ 8,500 2 1 3 120047345 5/17/94 $ 10,000 1 12 13 107237471 2/16/94 $ 8,250 1 1 2 120128624 2/10/94 $ 1,310 1 1 112128012 10/6/93 $ 18,750 3 3 123827164 7/26/93 $ - 1 1 119727378 4/6/93 $ 338 1 1 123764961 3/25/93 $ - 1 1 109550723 5/6/92 $ 1,625 1 1 115741993 1/24/92 $ 1,810 3 3 6 112056296 1/3/92 $ 2,250 1 2 3 105766158 8/26/91 $ 350 1 1 112114664 7/16/91 $ - 1 1 100614619 6/19/91 $ - 1 1 112124078 6/7/91 $ 20,000 1 1 111460184 2/27/91 $ - 1 1 111361002 2/13/91 $ - 2 2 111167664 8/1/90 $ - 6 6 107861015 8/1/90 $ - 2 2 Over $115,OOO in Fines in only 9 years ! Page 4 LITIGATION "'TIC'S MANY COURT SUITS IN COLORADO Even in TIC's own home state,the company is mired in many court suits. Here is a list of some of TIC's homegrown litigation that has never been reported in The Critic. The Critic will provide more details on these court suits in following issues. WESTERN SUMMIT VHANKE TIC asked for this restraining order in July 2000, in Adams County.(Case #2000008799) )4 DRAKE V TIC This negligence suit was filed against TIC in 2000, in El Paso County. (Case #CV2437) ,T' MOUNTAIN WEST V TIC This breach of Contract suit was filed in 1999. (Case #CV1919) ,/' CITY OF LITTLETON V WESTERN SUMMIT This breach of contract case was filed against a TIC subsidiary in 1998 and is still pending. (Case # CV3943) f WESTERN SUMMIT V ALUMINUM SPECIALTIES This 1998 suit over a breach of contract was filed in Denver County. (Case #CV0467) r',;' CD CORPORATION V TIC This negligence suit was filed against TIC in 1998, in Jefferson County.(Case #1998CV001919) >4 WESTERN SUMMIT V C&C OF DENVER This request for injunctive relief was filed in 1997, in Denver County. (Case #CV2914) * WAGNER EQUIPMENT V WESTERN SUMMIT This 1996 case was filed against TIC, in Montrose County. (Case #CV0007) ▪ TWO BROTHERS MINING COMPANY V WESTERN SUMMIT This mine sued Western Summit, a TIC subsidiary, in 1996 and others, in Clear Creek County. (Case #CV0046) )' DREW V TIC This 1996 court suit for monetary damages was filed in San Miguel County. (Case #CV0034) ▪ HUNTER V TIC This suit was filed against TIC in San Miguel County, in 1996. (Case#CV0265) l' WESTERN SUMMIT V CADDELL Western Summit filed this 1993 suit in Denver County. (Case #CV5026) J' NAGY ENTERPRISES V WESTERN SUMMIT TIC was sued for breach of contract in Denver County.(Case #1996CV000163) LITIGATION CONTINUED ON PAGE 6 Page 5 LITIGATION TIC'S FEDERAL LITIGATION While TIC is a national operation,it also has national litigation problems. Here is a list of some of its recent federal court cases. These cases include three suits against TIC for breach of contract filed in 2000, 1998 and 1995. Three other plaintiffs sued TIC over their injuries. TIC is involved in recent legal actions in other states. The Arizona Depart- ment of Economic Security has named TIC as a party in Maricopa County wage garnishment litigation. .� TCDI— THE CONCRETE DOCTOR, INC. V TIC TCDI filed suit against TIC for breach of contract in June 23,2000,in South Carolina. This suit is still pending and may be in arbitration. (Case#CV2001) A TIC V ALLIED STEEL Allied Steel filed a counter-claim in federal litigation involving TIC in 1999.Allied Steel's court case charged that TIC still owed them almost$39,000 for steel materials that were used to build Container Berth Seven in Garden City,Georgia. TIC claimed that Allied mis-loaded the trucks that delivered the steel. (Case#CV0005) A PERFORMANCE CONTRACTING V TIC Performance Contracting sued TIC-Wyoming and T&B Venture,a joint venture of Townsend&Bottom,and TIC- Wyoming over allegations of contract default,according to their court case. The suit was filed in 1998,in Wiscon- sin. (Case#CV0574) A NATIONAL GYPSUM V TIC, OTHERS National Gypsum sued TIC in this Oklahoma contract dispute in 1995. (Case#CV0160) A TIC V THE INDUSTRIAL WATER BOARD In a 1994 court case,TIC sued its own client in an Alabama action against the Industrial Water Board of the City of Birmingham. The Industrial Water Board in Blount County,Alabama hired TIC for the Inland System and Spillway construction job,but along the way something soured. In its court case TIC complained that the under- ground conditions at the job site were different from what was promised in the bid documents. TIC claimed that the Water Board intentionally misrepresented the project's geotechnical information and withheld reports. TIC claimed these actions were responsible for TIC losing$500,000 on its contract with a tunneling subcontractor on this job. As the suit progressed,the Water Board overturned an earlier judgment for TIC and won a motion for partial summary judgment. (Case#CV0218) PORRAS V WESTERN SUMMIT In 1997,Javier Porras was injured,according to court suit,because of the negligent actions of a TIC employee,in El Paso Texas. (Case#CV 1615) A LUCAS V TIC, OTHERS Greg Lucas sued TIC in 2000 in Wyoming when he was injured because of a TIC employee's negligence,accord- ing to court suit.(Case#CV0085) A COLEMAN V WESTERN SUMMIT In a 1992 court case,John Coleman sued this TIC subsidiary in Phoenix,Arizona when he was injured. TIC's client,the Fort Mohave Tribal Utilities,was also sued. (Case#CV0698) A HARPER V WESTERN SUMMIT Jeffery Harper sued this TIC subsidiary in Oklahoma over injuries in 1996. (Case#CV0200) A TIC SOUTHEAST V OCEAN SURVEYS In 1994, Ocean Surveys counter sued TIC in this Georgia case. (Case#CV0212) Page 6 MSHA VIOLATIONS x^43 TIC EMPLOYEES INJURED ON A SINGLE CEMENT PLANT JOB TIC's accident problems were particularly severe at several locations,for instance,the Rinker Materials Miami Cement Plant. A total of43 TIC employees were injured on this single job from January 1999 to July 2000,according to Mine Safety and Health Administration(MSHA)data. The MSHA reports reveal that at least six TIC employees were permanently disabled by accidents on this job. These statistics indicate that TIC's mining accident problems continued into 2000. Along with TIC's troubling mine site accident rate,MSHA's web site reveals that MSHA issued 70 violations and $8,300 in fines against TIC for breaching safety rules in 1998 and 1999 alone. This includes three additional cases where TIC failed to report accidents and injured workers. A few years ago,TIC was cited by MSHA for failing to report over 360 accidents. How can construction customers trust TIC's own claims about their safety record when TIC has repeatedly violated the accident reporting rules? MINES WHERE MSHA CITED TIC IN 1998& 1999(ALL INFORMATION FROM MSHA): San Manuel,Arizona Burro Chief Copper Mine,New Mexico TIC cited and fined for 4 violations. TIC was cited and fined for 2 violations. Henderson Mine,Nevada Ash Grove Cement in Durkee,Oregon TIC cited and fined for 14 total violations,including 3 TIC was cited and fined for 2 failures to report accidents serious. and 1 serious violation. Barrick Goldstrike,Nevada Crandall Mine(42) TIC was cited and fined for 4 total violations,including 1 TIC was cited and fined for 1 violation. serious violation. Boulder Exploration Project(24) Getchell Mine, Nevada TIC was cited and fined for 7 violations. TIC was cited and fined for 6 violations. Big Island Mine,Wyoming Getchell Turquoise Ridge Mine,Nevada TIC was cited and fined for 3 violations,including 2 TIC was cited and fined for 2 violations. serious. Homestake Ruby Hill Mine,Nevada Bell Ayr Coal Mine,Wyoming TIC was cited and fined for 2 violations,including 1 TIC was cited and fined for a failure to report an accident, serious citation. 1 serious violation and 1 other violation at this mine. TIC has historically failed to accurately report the number of Continental Mine,New Mexico TIC employees hurt at this particular mine,according to TIC was cited and fined for 1 violation. their MSHA violation history. Electrowinning Complex,New Mexico Eagle Butte Mine,Wyoming TIC was cited and fined for 2 violations,including 1 TIC was cited and fined for 1 violation. serious. Solvay Minerals,Wyoming IMC Kalium Mine,New Mexico TIC was cited and fined for 12 violations,including 4 TIC was cited and fined for 1 violation. serious. Ivanhoe Concentrator,New Mexico 70 total MSHA Violations TIC was cited and fined for 2 violations. n 1998 £t 1999 Page 7 PAST MINING ACCIDENTS & INJURIES Almost 1,000 TIC employees have been injured at TIC's mine construction sites. Most people know that mines are dangerous places,but TIC's accident rate at mines have often exceeded the national average for mining contractors. It is possible that TIC's accident rate is higher than what is presented in the MSHA statistics. Within the last five years, TIC was cited for failing to report almost 400 accidents on mining jobs! Since an accident that is not reported never shows up in TIC's injury records or on TIC's accident rates,MSHA records on TIC provide only a minimal number of accidents that may have actually occurred. Here is a brief listing of past MSHA violations against TIC: ALL OF THE FOLLOWING ACCIDENTS & INJURIES ARE FROM 1997 Phelps-Dodge, Arizona & New Mexico: Homestake, California: 4 TIC employees hurt 1 TIC employee injured his eye California Cement Plant: Cement Plant, Colorado: 1 TIC employee punctured his finger 5 injured TIC employees Climax Mine, Colorado: Newmont, Nevada: I TIC employee crushed a finger 3 injured TIC employees at 2 mines Round Mountain, Nevada: Round Mountain, Nevada: 3 TIC employees injured 1 TIC employee smashed his finger Newmont, Nevada: Cortez, Nevada: 2 TIC employees injured 2 TIC employees injured in falls Unidentified Gold Mines, Nevada: Barrick, Nevada: 4 TIC employees injured 2 TIC employees suffered sprains,and one injured his eye IMC, New Mexico: 1st Miss Gold, Nevada: 1 TIC employee fractured toe 2 injured TIC employees Oregon Cement Plant (probably Ash Grove): Robinson Mine, Nevada: 1 TIC employee smashed finger 2 injured TIC employees Utah Cement Plant: Phelps Dodge, New Mexico: 3 TIC employees injured(fractured wrist,head wound, 1 TIC employee injured eye sprained back) Kennecott, Utah: Kennecott, Utah: 2 TIC employees injured(twisted knee and punctured face) 3 TIC employees injured; one gassed Asarco Silver Bell: Zircon Mine,Virginia: 1 TIC employee set on fire 7 TIC employees injured Stillwater,Montana: Rhone-Poulenc, Wyoming: 1 TIC employee crushed finger 2 TIC employees injured Cyprus Sierrita Mine, Arizona: Over 70 employees in- --Nk 3 TIC employees injured jured in 1997 alone! Magma Superior Mine, Arizona: 15 TIC employees injured Page 8 TIC ACROSS THE NATION QUESTIONS ABOUT TIC'S REPUTATION ARE HURTING TIC'S CLIENTS AT FOUR POWER PLANT CONSTRUCTION SITES More power plants are under construction in the create for the local community, not more jobs for United States than ever before throughout the TIC's imported work crew. When the local corn- nation's history. TIC-The Industrial Company is munity sees few local construction workers being one of the beneficiaries of this construction hired,they often become angry. It is TIC's con- boom. TIC is cur- struction customer, rently working on or the power plant owner, about to start on, four TIC's reliance on a low- who bears the brunt of different power plant wage and out of state the community out- j obs in Oregon, rage. This frequently Minnesota,Arizona work force may cut takes the form of and Mississippi. challenges to the TIC brin brings TI�' $ costs, but this gpower plant's siting to these power plant tactic frequently angers certificate and its jobs. TIC's reliance the local community. environmental per- on a low-wage and y mits, as citizen com- out of state work plaints prompt addi- ,-,force may cut TIC's costs, but this tactic fre- tional regulatory scrutiny of the facility. The .luently angers the local community. Many local following are details about each state where TIC is workers and their politicians count on the jobs involved or soon to be involved in power plant that the power plant construction jobs will construction jobs. MINNESOTA TIC's importation of most of its work force into rural Minnesota for the construction of the Lakefield Junction Power Plant,owned by NRG and Tenaska,triggered challenges to the project's site certificate and wastewater disposal plans. Local activists have objected to the power plant's decision to truck its wastewater to a nearby city sewer treatment plant,since this alternative was not fully discussed in the power plant's siting certificate hearings. Local citizens have also criticized the proposed plant's air pollution rates. The city of Trimont's mayor, who voted to approve the plant, later performed electrical work, as a subcontractor for TIC. Now he has come under intense fire by his constituents for this apparent conflict of interest. OREGON Calpine hired TIC to build the Hermiston Power Project. Local citizens surveyed the TIC employees' parking lot and discovered that 80%of the workers were from out of state. Now they have hired an attor- ney and have filed legal challenges to Calpine's power plant site certificate amendments. In other words, Calpine must face a lengthy legal challenge due to local anger over their hiring of TIC,because of the barge number of TIC's out of state workers. TIC ACROSS THE NATION CONTINUED ON PAGE 11 Page 9 TIC'S PROBLEMS TIC ACCIDENT CONTINUED FROM PAGE 1 There is evidence that TIC has used unqualified Crane operators. The State of Mississippi fined TIC $13,783 for subcontracting work at the Mississippi Power-Escatawpa job site to"Hydraulic Crane Spe- cialists,Inc." The Mississippi State Board of Contractors fined TIC for A TIC-operated crane broke a power line hiring Hydraulic Crane because TIC leaving nearly "...entered into a contract with a coin- 14,OOO residents --: pany without a valid certificate of re- + sponsibility." The state levied the fine without power for against TIC in June 2000. seven hours. _ TIC'S 1998 ACCIDENT RATE AT MINING JOBS ALMOST DOUBLED COM- PARED TO THE YEAR PRIOR. TIC'S ACCIDENT RATE IS CLOSE TO 50% HIGHER THAN THE INDUSTRY AVERAGE During 1999,the most recent year for which final statistics are available,TIC-Steamboat Springs had an accident incidence rate at metal/nonmetal mines of 5.03. That equates to over 5 injuries for every 100 employees per year. Conversely mining contractors as a group had an accident incidence rate of only 3.72 at metal mills and lower accident rates at other metal mining facilities. In other words,TIC's acci- ^ dent rate was almost 50%higher than the industry average. TIC's accident rate in 1999 rose sharply compared to 1998, almost doubling from a prior rate of 2.78 to 5.04. In terms of injured employees, TIC had only 22 employees injured in the entire year of 1998,but TIC had 57 employees injured in just the first three quarters of 1999. TIC'S PAST CONSTRUCTION PROBLEMS Many of TIC's past customers and injured employees have sued TIC charging that TIC's construction defects were responsible for injuries, fires and explosions at their facilities. TIC has been sued regarding fires and explosions at facilities owned or operated by Colorado Fuel&Iron, over an explosion at their Many of TIC's past Pueblo Steel Mill. customers and injured Also,American Azide in Utah,regarding a chemical employees have sued TIC plant fire,has sued TIC. Xerox in Los Angeles sued charging that TIC's TIC over an equipment failure at a power plant and construction defects were ABB Energy in California sued TIC over a fire at their responsible for injuries, power plant in Ione. TIC has also been sued by the fires and explosions at their families of workers who were killed on the job alleg- facilities. edly because of TIC's faulty installation of equipment. These types of suits were filed regarding injuries and deaths at mines in Nevada and Utah. Page 10 MI SC. INFORMATION -.-,TIC ACROSS THE NATION CONTINUED FROM PAGE 9 ARIZONA Tucson Electric hired TIC to build its Demoss Petrie Generating Station. The next thing Tucson Elec- tric knew,angered Tucson area residents had mounted a detailed challenge to the conditions of their air pollution permit. Regulatory authorities,which were alerted by the Tucson residents,responded by significantly tightening the terms of the permit and requiring reductions in the pollution rates. MISSISSIPPI Jackson County Sheriffs Department arrested a TIC supervisor at Mississippi Power Company's Daniels Plant, for possession of methamphetamines with intent for distribution. This has caused a considerable amount of local concern. PROBLEMS AT A WESTERN SUMMIT CONSTRUCTED WATER TREATMENT PLANT Several years ago,TIC moved into the water plant at the US-Mexico border between San Diego treatment business with a big and Tijuana but according to splash by purchasing Western "The waste water published accounts,"The waste Summit Constructors who had produced by a new water produced by a new$100 carved out a strong presence in $100 million sewage million sewage treatment plant r sewage plant work. Along with treatment plant near near the US-Mexico border has Western Summit's growth,as a failed water quality tests repeat- subsidiary of TIC, came problem the US-Mexico border edly." As of January 2001,no jobs. Western Summit constructed has failed water qual- litigation has been filed involv- the massive wastewater treatment ity tests repeatedly." ing Western's work on this plant. NEWLY DISCOVERED TIC LIENS TIC has liened two business associates in San Diego County and three more in San Bernardino County, California. TIC also filed a lien against James Hardie Gypsum in Las Vegas,Nevada. (Ilif p.�8dila � �i iiiiPi iyi�islE'��,�I Ek 2 a�lhr (1`1�. 4 1 dr:O.g'°, iiA0 0 3� i iiii ,gI ii if° (i u��.,..., � , TIC Holdings, Inc. (Corporate Owner of TIC - The Industrial Company and Western Summit Constructors, Inc.) 2211 Elk River Road Steamboat Springs,CO 80487 TIC-The Industrial Company Western Summit Constructors,Inc. (970)879-2561 phone 2211 Elk River Road 5470 Valley Highway (970)879-6078 fax Steamboat Springs,CO 80487 Denver,CO 80216 (970) 879-2561 phone (303)298-9500 phone Ronald W.McKenzie,President&CEO (970) 879-6078 fax (303)298-9501 fax Jim ICissane,Vice President Page 11 �AA ��yg 9 3g g' 9!' g� g y y P i �F M1 $: F: { ` F' 4 s S m i BCC •P�� i�g• 4 v i r t •a�, t • E• x r ( ! a }11-4-..,1%•• k �� e E��' �dp6 e •¢a° (r a #� �. 'd, tv AdAa �xi i 4 1y raj , OSHA VIOLATIONS AND NEWSPAPER ARTICLES TIC Crane Accident Cuts Power for 14,000 Georgia Residents: Savannah Morning News,December 5,2000 OSHA Finds that TIC's Construction Mistakes Caused Stem Pipeline Explosion:OSHA Inspection #300766060,Complaint#75238279 OSHA Issues Violations,Levies Fines Over TIC Employees:OSHA Inspection#301304143,#116184854, #2575587 TIC Fined$10,000 for Second Series of Asbestos Violations: OSHA Inspection#302764212&Case#99-1226 COLORADO COURT CASES Drake V TIC:Case#CV2437,El Paso County Court Mountain West V TIC:Case#CV 1919,Boulder County Court City of Littleton V Western Summit:Case#CV3943,Arapahoe County Court Western Summit V Aluminum Specialties:Case#CV0467,Denver County Court Western Summit V C&C of Denver:Case#CV2914,Denver County Court Wagner Equipment V Western Summit:Case#CV0007,Montrose County Court Two Brothers Mining Company V Western Summit:Case#CV0046,Clear Creek County Court Drew V TIC:Case#CV0034,San Miguel County Court Hunter V TIC:Case#CV0265,San Miguel County Court Western Summit V Caddell:Case#CV5026,Denver County Court FEDERAL COURT CASES TCDI-The Concrete Doctor,Inc.V TIC:Case#CV2001 in Aiken,South Carolina TIC V Allied Steel: Case#CV0005 in Savannah,Georgia Performance Contracting V TIC:Case#CV0574 in Milwaukee,Wisconsin National Gypsum V TIC,Others:Case#CV0160 in Tulsa,Oklahoma TIC V The Industrial Water Board:Case#CV0218 in Blount County,Alabama Porras V Western Summit:Case#1615 in El Paso County,Texas Lucas V TIC Others:Case#CV 0085 in Cheyenne,Wyoming Coleman V Western Summit:Case#CV0698 in Phoenix,Arizona Harper V Western Summit:Case#0200 in Tulsa,Oklahoma TIC Southeast V Ocean Surveys: Case#CV0212 in Savannah,Georgia PAST AND PRESENT MSHA VIOLATIONS TIC'S PAST CONSTRUCTION PROBLEMS http://www.mshagov Case #94-1203 Lt cn AHt� SAFETY EM?t O ER RESEARCH 854 KentuckyiStreet, Gridley,Caliifo nia`95948'Ph.530-8466352.` The information contained in The Contractors Critic does not ect a complete history of the business'practices of TICand/or its related companies.LASER is publishing i,formation that contractors do notand will hot publish about themselves MISER hasrelied on the public record to present this information td the public in an of prt to promotesafety,productivity,hnnestyand environmentalscompliance in.. the Construction/ndusap TIC has been given the opportunity to reviewthsmatertatfrerrorsnnd;naccuracies. 4s ofpublication,TIChas not merle any sn at re utedany specific in/ormanan in this publication LASE R.Inc. wi l continueto seek Pad publish additional data. b'or more in ormation,please contact✓ames Wilson at($#0);846-6,332'ar online.at Ioserinc nanzner,com for more in formation visit LASER'S websiteat ww,s laser-tne.cern Page 12 TIC-THE INDUSTRIAL COMPANY,ISSUE No.2 APRIL 2000 The Contra tory Critic Reporting on Safety, Productivity, and Honesty in the Construction Industry. TIC & WESTERN SUMMIT'S BAD HAB ITS ! TIC AND WESTERN SUMMIT: NEWLITIGATION, NEWS FLASH' SAME OLD BAD HABITS TIC and its subsidiary West- TIC's joint venture. GRANITE CONSTRUCTION em Summit continue to sink into The Critic finds it troubling WANTS OUT OF ITS litigation at several of its job that in just these eleven cases, INVESTMENT IN TIC sites. The cases listed in this TIC's own customer is sued In February, 2000, Granite issue of The Contractors Critic three times. Construction announced that it will include six charges that TIC/ This news should trouble TIC's cancel its current 30% ownership Western performed faulty and/or future customers. These cases of TIC's stock. It was just 3 unsafe work, two cases charging illustrate how a simple suit, even short years ago that Granite, with discrimination, two cases in- a "money owed" claim against a glowing descriptions about how volving unpaid debts, and a case contractor, can ultimately harm the Granite/TIC synergy would /'--alleging an improper bid by the contractor's innocent customer. blaze new trails in the construc- tion industry, invested in TIC. TIC MIRED IN ANOTHER DRUGS & SEX SCANDAL TIC and Granite worked In February, 2000, the EEOC TIC construction workers re- together recently on a Georgia and a private attorney forced TIC garding their drug tests. waste water treatment plant, but to settle claims and a federal court In retaliation, the drugged-up since then, Granite has been suit regarding allegations of workers covered virtually every oddly silent on its involvement sexual harass- e square inch of with TIC. Until now. ment. The 2'," m,< Come on the TIC rest- According to published harassment IswYer' r'V Baby!!. c l rooms with accounts, Granite is asking TIC charges in- .r cya sexual remarks New Flash Continued On Page 8 volved Bonnie �,6 6 and pictures Shoemaker, � v"tt directed at Ms. Table of Contents who was Shoemaker. Litigation 2 - 4 employed for .• • According to OSHA & Job Safety 5 eleven years as TIC - Ms. Shoe- office mana er The Industrial maker's federal TIC's Explosive Situation 6 g Company for TIC in cCi court corn- Western's Integrity 6 Nevada. plaint, even OSHA Violations 7 According to EEOC trial attorney though she complained to TIC Daniel Preciado, theproblems management, the offensive TIC Corporate Information 7 g graffiti began when Ms. Shoemaker continued. TIC Defended itself Sources Notes 7 refused to accept bribes from HARRASSMENT CONTINUED ON PAGE 8 LASER Info 8 LIT/GAT/ON The Critic views court cases and liens as a plague on our construction industry. Contractors, employ- ees and their organizations, and customers should be working together and settling their differences outside of the court house. But the trend in our industry is towards more court suits, not less. As the Engineering News Report of February 15, 1999, editorialized: "If your only tool is a hammer, then every problem will look like a nail. When it comes to the construction industry, the main dispute resolution tool remains a lawyer, and every disagreement will look like a lawsuit. Lawsuits go against the basic nature of the industry. Construction is not an individual endeavor, but rather a business of team building. Successful teams and projects are built on the strengths of each member, while lawsuits and unsuccessful projects are founded on the weaknesses of team members. A decade or more may pass before there is any resolution of a dispute by the courts leaving no one a winner. Some industry sources claim the tide of dispute resolution may be turning back towards the courts. This may indicate that the construction industry has become too complacent to combat creeping litigiousness. " The Critic could not agree more with this ENR editorial. These are the reasons why the Critic devotes its resources to researching and publishing details on litigation and liens in the construction industry. LASER feels that the sheer numbers and the types of these lawsuits should be of grave con- cern to every contractor and construction customer. Following is a partial list of TIC - The Industrial Company's & Western Summits Constructors's litigation: RAVLIN V. TIC, WESTERN, OTHERS Ravlin was a maintenance mechanic for the City of Las Vegas. While he was installing a relief valve in the City sewers, a 16 to 8 inch reducer valve exploded from the main supply c« header valve, causing him severe injuries. His Western Summit(and) TIC...failed to suit, asking for over $10,000 in damages and conduct an adequate and proper medical expenses, charged that TIC and West- inspection of the water/sewage treat- ern had negligently, carelessly, and recklessly ment system...that negligence and installed the valves and other components of carelessness...created risk of harm. the sewer system, as follows: "...inadequate isolation valves, restraint "Western Summit (and) TIC ...failed to rod, thrust blocking, and safety and/or conduct an adequate and proper inspection of control valve were incorporated into the the water/sewage treatment system ...that system. That failure...violates the Uni- negligence and carelessness ...created risk of form Building Code." harm. "...inadequate isolation valves, re- straint rod, thrust blocking, and safety and/or control valve were incorporated into the system. That failure...violates the Uniform Building Code." ALLIANZ UNDERWRITERS V. WESTERN SUMMITT Western Summit was performing construction work on a pump station at the South Bay International Waste Water Treatment Plant, in San Diego, California when they "negligently turned an 8 inch water valve to the "on" position, leaving it in the open position for a signifi- cant period of time." For untold hours, thousands of gallons of water spewed out of the valve, , flooding the work area. Page 2 LIT/GAT/ON CONT/NUED - Because of Western Summit's negligence in leaving the valve open, the neighboring job site of Dillingham Construction was flooded. All of Dillingham's completed work and work in progress as utterly destroyed, causing over $795,000 in damages. Dillingham's insurance company for this job, Allianz Underwriters, had to pay for Dillingham's damages. Allianz then sued Western Summit to recover the money that Allianz had to pay out in claims. Allianz' suit charged that Western Summit: Failed to properly con- struct the pump station in a safe and workmanlike manner, failed to provide for the safekeep- ing of Dillingham's adjacent construction site, failed to properly install the 8 inch water valve, failed to use the proper construction materials, failed to abide by state and local building and fire codes and failed to hire supervisors with necessary skills and knowledge. Allianz asked for recovery of over $795,000 from Western Summit. OCEAN HILLS HOMEOWNERS V. TIC, OTHERS This San Diego-area construction defect case charges that TIC and others performed faulty construction work as follows: "water intrudes into the buildings through the floor, plumbing fixtures do not operate, tiles and roof were not constructed according to plans, code require- ments and standards of workmanship were not followed, the roofs leak, the Portico on the clubhouse, and the windows and doors leak and are improperly installed, and the exterior walls were improperly installed and are already suffering from dry rot. ,.. RANCH WOOD PARK PROPERTY OWNERS V. TIC, OTHERS This suit charged that TIC and others constructed a San Diego condo project, but "the property and structures are not of merchantable quality, nor were they designed, erected, constructed or installed in a workmanlike manner, but are defective." WRIGHT V. WESTERN SUMMIT ...Wright was verbally Velo Wright was an afro-american employee of harassed by his supervisors Western Summit, a TIC subsidiary. He was hired to with profane and "negative work at the Miramar landfill job. But Wright was racial terminology"because of verbally harassed by his supervisors with profane and his race. When he complained "negative racial terminology" because of his race. to upper management, he was When he complained to upper management, he was swiftly laid off. swiftly laid off. RIVAS V. TIC, WESTERNSUMMITT, THE CITY OF SAN DIEGO TIC/Western Summit was working at the City of San Diego sewer plant. But their con- struction site created unsafe conditions. Cesar Rivas was injured in a car accident that he charged was caused by Summit/TIC's unsafe site. His suit charged that TIC and Western: "...so negligently maintained (their construction site at the San Diego sewer plant) as to create a dangerous condition on the road. As a result...the plaintiff was involved in a serious motor accident, thus causing his auto accident." Not only were TIC and Western sued, Rivas also sued TIC's construction customer, the City of San Diego. Page 3 LITIGATIONCONTINUED CASPER, PHILLIPS& ASSOCIATES V. TIC, OTHERS TIC wanted to submit a bid on a construction job at the Port of Longview, Washington. They arranged with the engineering firm of Casper, Phillips & Associates to do the design Casper, Phillips & Assoc. did work for the proposed project. Casper, Phillips design work for TIC's Port of did the designs for TIC, and submitted a bill for Longview, WA bid, and charged only 50% of their normal billing rates. But TIC 50 % their normal billing rate. did not win the project award. Even though TIC lost the bid and refused to Casper, Phillips had billed at a reduced rate, TIC pay for the designs forcing then refused to pay Casper, Phillips the $10,000 Casper, Phillips & Assoc to sue for the design work. Casper, Phillips then had to sue TIC for the full $20,000. for payment. she_ MEADOW VALLEY CONTRACTORS V. TIC, CLARK COUNTY, NEVADA, OTHERS Clark County, Nevada was accepting bids for an $18 million upgrade of a runway at the McCarran International Airport, near Las Vegas. TIC set up a joint venture with an out of state contractor and submitted a bid. Meadow Valley Contractors, who is a local company, submit- ted a competing bid. Meadow Valley claimed that their bid was entitled to favored treatment under Nevada law, and TIC's joint venture bid was not entitled to any preferences. Nevada public works contract law gives bidding preference to companies that have paid Nevada taxes during the prior five years. Meadow had paid local taxes, but TIC's joint venture partner had not. TIC's joint venture still received preferred treatment, and won the bid. Meadow filed suit, charging that TIC's joint venture was actually a scheme to conceal the joint venture's failure to comply with Nevada State law bidding preference requirements. Meadow's suit charged: "The ... (TIC)joint venture was formed for the sole purpose of circumventing the require- ments of(Nevada law) and therefore ... does not quality for the bidder preference on any project. The (TIC joint venture) bid was non-responsive and precludes their qualification for the bidder preference. " Not only did Meadow Valley sue TIC, they also sued TIC's hapless construction customer, the County of Clark, Nevada. US RENTALS V. WESTERN SUMMITT, COUNTY OF SACRAMENTO, OTHERS Western Summit rented equipment from US Rentals but failed to pay over $33,000 in rental charges. The equipment was used on the Simms Wastewater Treatment plant job near Sacra- mento, California. While this may seem to be a minor suit, US Rentals also filed a stop notice and public works lien, and then sought legal action against Western/TIC's customer, the County of Sacramento. This is yet another example of how sloppy activities by a contractor can cause headaches for their innocent construction customer. MEMORY V. WESTERN SUMMITT, OTHERS Marilyn Memory charged that Western caused her injuries. Page 4 OSHA & JOB SAFETY Worker injury cases involving historic exposure to asbestos are clogging our nation's courts. Hun- dreds of thousands of workers have sued various employers in recent years, charging that exposure to asbestos left them with injuries ranging from lung ailments to cancer. This painfully public knowledge of the dangers from asbestos especially troubles the Critic, be- cause apparently TIC still fails to obey the asbestos exposure rules, as the following stories show: ✓ In April, 1999 TIC received 4 OSHA Violations in CO for violating asbestos rules. TIC paid a $10,000 fine. ✓ December , 1998 TIC was cited for 18 violations of OSHA respiratory protection regulations, including three serious violations, and was fined $4125. The violations included breaches of rules regarding respiratory protection, cranes, and exposure to lead. ✓ October 1998: TIC received six OSHA citations at the Stillwater Mine construction job in Montana. rr August 1998: OSHA cited ERS, a pipeline contractor recently acquired by TIC, for two violations in Colorado. ERS had received at least seven OSHA citations before their acquisition by TIC. As REPORTED IN PREVIOUS ISSUE OF THE CONTRACTORS CRITIC In recent years, TIC continues to violate many OSHA and Mine Safety & Health Administration (MSHA) regulations that are supposed to protect TIC's employees from jobsite injuries and accidents. Historically, TIC has committed almost over a thousand violations of OSHA and MSHA rules in the last 15 years. Unfortu- nately, this questionable safety record has also caused many TIC employees to be injured and even killed on the job. In several instances, the injured TIC workers, or their surviving family members have sued the TIC client, seeking millions of dollars in damages. Despite this history of safety problems, TIC's violations continue. At the Ponderosa Fibre (formerly Boise Cascade)plant in Wallula, Washington, TIC was constructing the deinking plant during the spring of 1997. Although the electrical cable trays were clearly marked "WARNING! Not to be used as a walkway!" TIC had laid a piece of plywood over the trays, thus encouraging electricians to walk on the trays even though there was a danger of falling. OSHA also investigated charges that there was no effective program to insure that electrical wiring on the site was grounded, so workers were also exposed to shocks. TIC was also charging workers for lost safety equipment which meant that employees that lacked funds may not have had their protective equipment replaced. Finally, and most insultingly, TIC provided on-site drinking water for the foreman, but none for the work- ers. TIC workers did not have a place to wash up. TIC's employees did not even have toilet paper! This was not only petty, but dangerous. As the OSHA report concluded, "Employees could be exposed to possible Hepatitis A...when they ate lunch they were handling their food with dirty and unwashed hands...lack of toilet paper in the toilets can lead to disease, Hepatitis A, and rash to the employees' skin." Washington OSHA fined TIC $1,750 for these violations. The citations resulted from complaints from TIC's own workers. They also complained they were told to "tie off' while working at heights to an unsafe structure; the electrical trays. TIC workers also charged that TIC told them to steal strut straps from Boise's existing conduit system, or from other contractors, and use it to install conduit on TIC's job at the mill. LASER is surprised that TIC continues to violate OSHA rules designed to protect its workers from danger- • ous falls. Many TIC workers have been hurt in falls. TIC workers were killed from falls at a Kennecott job in Utah and an Idaho Power job. A TIC worker was maimed by a 50 foot fall from a Phelps Dodge smelter in New Mexico. TIC has still not achieved compliance with fall protection rules. r . TIC's record in the Mining Industry was even more troubling. During 1996 to June, 1998, TIC received 39 violations and almost $4,000 in fines for breaking safety rules covering reporting of accidents, fire protection, and high pressure valves. OSHA records also reveal that 2/3 of the workers on this job were out-of-state. Page 5 TIC'S EXPLOSIVE SITUATION As REPORTED IN PREVIOUS ISSUE mine. County's only murder, another was In June, 1997, Eureka County, These arrests underline what is arrested for drug possession, and Nevada sheriffs discovered 1050 becoming a problem for many six others were arrested for driving lbs. of explosive ammonium nitrate small towns in northern Nevada while intoxicated and other and detonators, and arrested two and throughout the West;the rising charges. men. The seizure included a numbers of serious crimes commit- There are some indications partially assembled explosive ted by the out-of-state workers. these statistics underestimate the device. "They were ready to rock These workers are imported into number of out-of-state constuction and roll," said under-sheriff Pete Nevada to work during this state workers, including TIC employ- Bigrigg. In comparison, about and region's boom in the gold ees, who were arrested during the 4,000 lbs. of ammonium nitrate mining industry, and to work at year-long mining boom. Only was used to blow up the Oklahoma other large construction projects in about 30% of the arrest forms City Federal Bldg. the western states. identified the employer of the The cache was found in a trailer This problem was so severe arrested persons. Of those with park used by employees of TIC, a during the recent construction of identified employers, over 40%of Colorado based construction the Robinson copper Mine in those arrested worked for TIC, company which constructs ore White Pine County,Nevada, that and another 20% worked for other processing plants at mines in local sheriffs frequently joked that out-of-area and out-of-state Nevada and throughout the West- TIC stood for"Take'm Into Cus- construction companies. em U.S. The two arrested men, tody." To some degree, this is borne both ex-felons,were TIC iron- The joking arose out of events out by another statistic; over half worker employees. They had during 1995,when TIC imported of the arrests in this county during previous convictions for car theft about 300 out-of-state workers into 1995 were of out-of-state residents; and burglary. this county for the year long cons- it is likely that many of these No one knows yet what the two truction project at the Robinson persons came into town to work at men planned to do with the huge Mine. White Pine County arrest re- the mine construction job for TIC, amount of explosives which they cords reveal that during 1995, one although their employer was not had stolen from an abandoned TIC employee was arrested for the identified on the booking sheet. WESTERN'S INTEGRITY As REPORTED IN PREVIOUS ISSUE received 6 unsubstantiated cita- Western Summit also an- Western Summit may have tions that were dismissed. In swered "No" to the following provided misleading safety and fact, Western Summit had ne- question concerning their litiga- court suit information during its glected to mention that it had tion history: "Have you had any bid for the work on the Fresno, received 3 citations and a fine litigation within the last two California, water treatment plant. after an May 6, 1992, OSHA years in which your liability The City of Fresno asked West- inspection of the jobsite at exceeded$250,000?" Yet, Court ern Summit if they had any Englewood, Colorado's Bi-City records revealed that in 1991, a OSHA violations from July 1, wastewater treatment plant. All former employee of a Summit/ .-. 1989, to June 30, 1992. Western of these citations were pending TIC joint venture (the San Diego Summit answered that they had and under appeal at that time. integrity Continued On Page 8 Page 6 OSHA VIOLATIONS Inspection # Date Number Type Penalty i 302313457 11/19/99 2 Other $ 2,925 302764212 04/29/99 4 Serious $ 10,000 In the past 5 years, 301365110 10/22/98 2 Serious TIC& Western Summit 2 Other have amassed 18 OSHA 1 Unclass $ 4,125 Violations and been 124701715 02/18/98 3 Serious $ 325 assessed a whopping 115237679 02/03/97 1 Serious $ 1,750 300766060 09/18/96 1 Serious $ 1,500 $60,625 in initial 116184854 08/02/96 1 Serious $ 35,000 penalties for violations . 120328125 08/10/95 1 Other $ 5,000 *Penalty amounts reflect initial penalties assessed CORPORATE INFO TIC Holdings, Inc. • Corporate Owner of TIC- The Industrial Company and Western Summit Constructors, Inc. Ron McKenzie, CEO, Jim Kissane, CFO 2211 Elk River Road, Steamboat Springs, CO 80487 Line of Business: Indus. Const. Primary SIC: ea- 1541 (Ind. buildings and warehouses), Extended SIC - 9905 (Industrial buildings, new construction, nec) Secondary SIC(s): •1731 (Electrical work), Extended SIC - 9903 (General electrical contractor) 1623 (Water, sewer, and utility lines), Extended SIC - 9904 (Pipeline construction, nsk) TIC- The Industrial Company P.O. Box 774848 Steamboat Springs, CO 80477, 2211 Elk River Road, Steamboat Springs, CO 80487 Western Summit Constructors, Inc. 5470 Valley Highway, Denver, Colorado 80216 SOURCE NOTES (All court cases are in Superior Cowl,San Diego,unless otherwise cited) OSHA Violations Allianz Underwriters V.Western Summit,a subsidiary of TIC Holdings-Case#727678 ERS Constructors/TIC,Report ID Velo Wright V.Western Summit-Case#00709976 #0830600 ERS Contractors. Report ID Ranchwood Park Property Owners V.TIC,Others-Case#660021 #0728500 Marilyn Memory V. Western Summit,Others-Case#N57449 TIC,Report ID#0830500 Rivas V.TIC,Western Summit,City of San Diego-Case#705208 TIC,Report ID#0830100 TIC,Report ID#0953200 US Rentals V.Western Summit,Others. Sacramento County Superior Court-Case#96A502690 TIC,Report ID#0830600 Michael Ravlin V.Western Summit,Others. District Court,Clark County,Nevada-Case#A391121 /"-\ Meadow Valley Contractors V.TIC,Others. District Court,Clark County,Nevada-Case#A322864 US Equal Employment Opportunity Commission,Bonnie Shoemaker V.TIC. US Federal District Court,Reno,Nevada-Case#CV-N-98-005 17-ECR Page 7 HARRASSMENT CONTINUED FROM PAGE 1 drugs, TIC fired both Jennie and over the next 3 and one-half years. by claiming that, "You always have her husband, John. Jennie and TIC has the option to buy out some people that you just hired off John both sued. Jennies case was Granite quicker, if they are able. the street and haven't dealt with later settled. After Granite's initial praise for ,-. before", said TIC's general counsel, When TIC was working on the their move into TIC, and Granite's Colin Reid. Homestake McLaughlin Mine job acquisition of four seats on TIC's The EEOC charged that TIC in Northern California, they set up Board of Directors, construction failed to take effective, immediate some employee training classes, industry observers are shocked at action to stop the harassment. Ms. where one of the TIC instructors Granite's sudden abandonment of Shoemaker also hired her own made sexual advances to a student, its TIC stock ownership after only attorney, who filed a federal civil Loretta Schwind. Schwind sued and three years. TIC is supposed to be suit. That complaint charged that won a$200,000 judgement from TIC. making money. If so, why is TIC had fired Ms. Shoemaker for Lisa Lewis also worked for TIC Granite bailing out? Did some- complaining about the harassment, in its Sacramento office. TIC fired thing go wrong with the Granite and also retaliated against another her for being pregnant. She filed a and TIC job in Georgia? member of her family who also state civil suit alleging sexual worked for TIC. discrimination. The case was The Bureau of National Affairs dismissed because of a mandatory Integrity Continued From Page 6 provided extensive coverage to arbitration clause. water treatment plant) had sued TIC's settlement of the case in Mickie Decker was a pipe Summit over an injury, and BNA's February 16, 2000 issue. welder who asked TIC for a job in Summit's liability in that case TIC faces a five year consent North Dakota. Since TIC was possibly exceeded $250,000. decree as a result of the settlement. hiring male welders, but refused to This record raises questions The privately filed federal civil suit hire her despite her qualifications about Western Summit's integrity was also settled, but those terms and experience, she filed a state in fully answering the City's are confidential. sex discrimination complaint, and a questions regarding its qualifica- " This is only the latest of a long NLRB complaint. tions to build a water treatment term string of incidents involving TIC was denied work at the plant. The City of Fresno did sexual harassment at TIC, and Denver, Colorado airport job because award that water treatment plant allegations of drug use among TIC of TIC's failure to meet the State's contract to Western Summit, but employees. Jennie Benzie was a requirements to hire a percentage of that job was plagued by prob- TIC office employee in Sacra- female owned subcontracting firms. lems, many of which ended up in mento, CA. After she rejected TIC litigation. The construction manage-ments's sexual advances, customer, the City of Fresno, was including offers to watch porno- New Flash Continued From Page 1 dragged into some of these court graphic movies and take illegal to buy back Granite's TIC stock suits. r-- LASER, INC. LEGAL AND.SAFETY EMPLOYER RESEARCH 654 Kentucky Street, Gridley,California 95948 Ph.530.846-6352 The information contained in The Contractor's Critic does not reflect a complete history of the business practices of TIC and/or its related companies: LASER is publishing information that contractors do not and will not publish about themselves. LASER has relied on the public record to present this information to the public in an effort to promote safety,productivity,honesty and environmental compliance in the Construction Industry. TIC has been given the opportunity to review this material for errors and inaccuracies. As of publication, TIC has not made any suggestions or refuted any specific information in this publication. LASER,Inc will continue to seek and publish additional data. For more information,please visit our website at www.laser-inc.com,or contact us at(530)846-6352 or a-mail•laserinc@nwnznet.com Page 8 EEOC SUES MAJOR CONSTRUCTION FIRM FOR WIDESPREAD RACE DISCRIMI.. Page 1 of 2 A The US. Equal Employment Opportunity Commission FOR IMMEDIATE RELEASE CONTACT: New Orleans District Office JUNE 11, 2001 Keith T. Hill, Regional Attorney (504) 589-3844 Patricia Bivins District Director (504) 589-3842 TTY: (504) 589-2958 EEOC SUES MAJOR CONSTRUCTION FIRM FOR WIDESPREAD RACE DISCRIMINATION NEW ORLEANS - The U.S. Equal Employment Opportunity Commission (EEOC) today filed a race discrimination lawsuit against TIC - The Industrial Company (TIC) and TIC Holdings, Inc. (TICH), one of the nation's largest industrial construction firms, alleging discrimination in recruiting and hiring on behalf of a class of up to 600 African-American construction workers nationwide. EEOC's lawsuit, filed in U.S. District Court in New Orleans, charges TIC with violating Title VII of the Civil Rights Act of 1964 on a nationwide basis since at least 1994 by denying employment to African-Americans in construction positions because of their race. "This lawsuit sends a loud and clear message to employers in Louisiana and across the country that such widespread race discrimination will not go unchallenged by the federal government," said Keith T. Hill, regional attorney for EEOC's New Orleans District Office, which filed the suit. "It is appalling to think that nearly 37 years after the passage of the landmark Civil Rights Act of 1964 that some large employers still have not gotten the message that discriminating against individual groups because of their race is a serious violation of the law." The unlawful employment practices cited in the suit include, but are not limited to, a specific set of written policies, procedures, and rules dictating the manner in which individuals are to be recruited and hired. The suit also alleges that, in the alternative, the discrimination is the result of facially neutral policies and practices which may have an unintentional "disparate impact" on African-Americans as a class. Patricia Bivins, director of the agency's New Orleans office, said: "Unfortunately, some employers continue to implement racially discriminatory hiring and recruiting practices on a national scale. Every employer across the country should be aware that EEOC will not hesitate to vigorously enforce the anti-discrimination laws to eradicate such egregious conduct from the workplace." EEOC's suit seeks a permanent injunction enjoining TIC and TICH from refusing to hire, and from failing to recruit, individuals because they are African-American, as well as prohibiting other employment practices that discriminate on the basis of race. In addition, EEOC is asking http://www.eeoc.gov/press/6-11-01.html 9/19/01 ' EEOC SUES MAJOR CONSTRUCTION FIRM FOR WIDESPREAD RACE DISCRIMI.. Page 2 of 2 the court to order TIC and TICH to institute and carry out policies, practices, and programs which provide equal employment opportunities for persons of all races, and which eradicate the effects of their past and present unlawful employment practices. EEOC also seeks back pay, compensatory and punitive damages for all individuals affected by the discrimination, and an order requiring TIC to pay punitive damages to EEOC as a complaining party. TIC, a national construction company with approximately 5,000 employees, focuses on power, cement, mining, industrial, process, coal, marine, water/wastewater, pulp and paper, food and beverage, and related market construction. The company has annual contract awards exceeding $500 million with offices in Denver, Steamboat Springs, and Sedalia Colorado; Atlanta and Savannah, Georgia; Bakersfield and Carlsbad, California; Tualatin, Oregon; Kansas City, Missouri; St. Paul, Minnesota; Casper, Wyoming; and Houston, Texas. The company also does business in Louisiana and has heavy construction operations in facilities across the United States. Race discrimination charges filed with EEOC account for the highest percentage of all charge filings, a trend that has remained consistent throughout the Commission's history. In Fiscal Year 2000, EEOC received 28,945 race discrimination charge filings nationwide, accounting for 36% of all charges filed with the agency. In addition to enforcing Title VII of the Civil Rights Act of 1964, which prohibits employment discrimination based on race, color, religion, sex or national origin, EEOC enforces the Age Discrimination in Employment Act; the Equal Pay Act; prohibitions against discrimination affecting individuals with disabilities in the federal sector; sections of the Civil Rights Act of 1991; and Title I of the Americans with Disabilities Act, which prohibits discrimination against people with disabilities in the private sector and state and local governments. Further information about EEOC is available on its Web site at www.eeoc.gov. This page was last modified on June 11, 2001. Return to Home Page http://www.eeoc.gov/press/6-11-01.html 9/19/01 r. STATE OF COLORADO DEPARTMENT OF TRANSPORTATION Region 4 rC POT 1420 2nd Street Greeley,Colorado 80631 Weld County Planning Department in (970)353-1232 GREELEY OFFICE FEB 7 2002 Weld County,SH 52(off) Calpine N of H u February 5,2002 RECEIVED of of I76 o NE of Hudson Monica Daniels Mika Weld County Planning Services 1555 N. 17'"Avenue Greeley,CO 80632 RE: Rocky Mountain Energy Center Dear Monica: Thank you for forwarding me a copy of the traffic impact analysis for the above site. You were correct in assuming that I had not received a copy. I will try to lay out CDOT's concerns regarding this proposal as they relate to the different routes: SH 52 to WCR 51 • The sight distance at the intersection of WCR 51 and SH 52 is not good and may not meet CDOT's requirements. • Traffic along SH 52 is traveling at 65+mph. • Traffic volumes along SH 52 are greater than the frontage road. • Little to no shoulders along SH 52. • Unlike WCR 49,no improvements are proposed for the connection of this county road to the state highway. 176 toWCR51 • Failure of the traffic analysis to address the possibility of traffic backing up on the exit ramps in the AM peak, nor the possibility of traffic backing up(underneath the structure and onto the frontage road) while attempting to turn left onto the ramp during the PM peak. • The short distance between the exit ramp and the frontage road will cause vehicles exiting the ramp to make a right and then almost immediately turn left. It is unclear what impacts that may have on the traffic traveling on WCR 49 since that volume is low. The applicant may want to consider implementing some kind of scheduled(flex-time,shifts,etc.)that would minimize these impacts. The County is reminded of their obligation regarding the county road connection to the state highway as per Section 2.6(6)of the State Highway Access Code. Either connection of the county road to the state highway system should be planned to operate safely. If you should have any questions,please do not hesitate to contact me. Sincerely, a / / G a Hice-Idler Assistant Access Manager (970)350-2148 EXHIBIT / I use#A 4 aP-477-7-41:42 ,3".*". Tl!,. `.`$ Ipllt}'` 'At�I row r'� .`L. I,i P. !a'-� li ,I '� dal�!# }� s - ``+ (�\�7i1#ik� j' t 1 { - \-.141.:':“, kill I ty`w,a '�" 1! ♦ . 3 l [.° • • ., +� lil r~ j 2 ':.'411i911,1/"*. AA/t"�Idi _ _ \+ $t r Fpe,7. z dY.W,//x '3 yybe * t • nVf>7 {{ ;, '�i s 1j0 h' �li tt �i1� �l . tr§a n'ti, 1. I�Iti...... 4 ��!di`I`r is-4, I+ I! r F ;lit l :tart aei. _ • ,r, -4'.m ac-,. .i .'..'1.. .t' r 1•.M� II la ui F R ti: b •7 i :bl {L - '5 y . t{V 4 Y �t of• ie R t� ,,, tll 4• :frti,* f iylc Nty ;wF I A > o .E A �h.r 2n' * t l� Lta !II("a ...s:_.I 141 ,wry .:+�1 'V 'Ft� .^ w r j n + :::,..,f + 1 -i- # C -1 R t CL _,�� ri% _: ItsL.; ,ti El 5 .HE Rlalr C IRl ,t Y L. M,ÔERTYki 1NILL` BEH 4 . ;,�� p ':• I • � ��••RR ISi ;, Sii4;: . '.. ff'+{l1int LEY p Vr t ,,t " {l) r T' s I FiII 'l l s* fira�;:- a >. 16 fi :tl ..*_ 1 j.-- ial iW ,ka v s n . T'+' ,» t-.. Z 1 C& " o4Mft'EE* 0 ..a " 1114 s i�� t`siuVT^�j�:{1'/�{`1 tb 'i - j ir i ' i 1 iR i.l s.N l� 4t�i�a«i1.^C�lil�t s . i''.....,$34I `t�l r 1 ilk {I Mk Yva.'., . • v. o Size: 48495 bytes `I Z�I-OL Dimensions: 640 x 480 pixels WD r g. EXHIBIT , Ir IISIt I fi ,ilnir" ,7 • - "71 Illtlrr- PII'r • r • - 0 • . ..•^ r a ryl •r �., T wF ' sy *�''"' i M 11 1. ,III : UI . �#� 1 a I..� q!1i4 1.1: `�Ii4 ' ---:-:::"I'41 � I ran • l:i '.! 4fk E a t .t r 11=a M4 r : a x -: ! ; i t fit 1 'r rr t a ! 5 1 I _ 1 � 9"'K I!�! �.l�i -e^ � :;AP: III., Ip tt- >s, Ir,§3'z' II " i 'st'ji ' vlt I t rr bh -il st i'n hbit,'Ih �I 1 -go. 1 M 'R I r Ir ".y I44 !! 1 ;' r"' +t"91 ,4 !'y It .1 a'#'Y rlr rl 1 Y s -al Nh {' '. -- iid�+l .� .....4:-_--.- n xrM MI .yu k�;: rh a I l t Y i s t x', 4 rh'- Irtlr I r I,. '�'@: k'^n r _ ..x it r:z 7 .-ail N-i . . 11 ,!: rF -'fi. -„^ ',E,E:" v,t ri s. *r!',!--- A4.4'+:w.zsc4x II''''I'• S"•+is: • • ' . ' • —. r v 4...- • �„ "4.."‘"•4:, Y r r r*'S :�r :Ili, w§` r R F7 Vii-+;, *v "t'»wr,z� i1-M � ",� •"yw, i >h aye -s rte " i;; �;k k s,,.-_ `'yz", .- .. " - r i k rkrt K' ,,.fir }`t • . wn} 4C' f " lJa-- . , . ' ..,.. .N 'v" ^,:,_7'4._ "irk -i` "" t�_. - '" Irma . t ',' f ° !':. t.,..ayTtaiIstsn*!!!*!r! 141�u illy IIY�i r t �.yy w ,jlri ig' 9i,v ^fr+- f1�Y, 11V1 +7,rcn ). .r Iis *vry &..: a si" I i '' p6* ti 4y'}s �4 4i tr...., "',.k"�I'n"`-e J �'+hl" a,. I llYEx} ' _G"r!r �-,iht. 3 " 1iWr Jh'PI '.:e :'`I' a rits *y. ''.:4;44:.;;.,-;-----, - ak ,`. Size: 31623 bytes 72 Dimensions: 640 x 480 pixels ;J0C)2- SUo MAGI PVCCOL- i J: .W 1 t •4.,...''T:.1* + +i gIj :± ''. 11J I <a° ' :':7 "1 .',:',4 Y ✓ it M' il>L i1,. dl x nIk' + ' Y _ + x : I+ ..t st• >• ..� ...,:.,,,-4,4 - #: I � , s �' �14 ° .�, �w 11 I zt₹� .,is.J: •„ �ll.,..,-,:;::::';',,•14-iu x^il� ",* ,I ,:,,,,I.:;$4:,!-:!,-••.- wll '>• . sr--'. , ii u 'u { wi t ni r .i+ si,s'4 .t.�'. +•Ir :.+I i�nl ,..,,in s--,.;•;,, +l t I i'+..s i+ '¢ 11V: { 3 t71 7' i,, r .I t z 1 t Il .IF° IIII. "'` ti i .. v, ? i I^Y+ : 1 .`+t .ice wioh fh I `I.tl"'7 y i `a ,' ,., '„ ,� 1 TM Bntj y�*r - t t. nil !' , ::: • '1. s:4 • p. .tit VII irlll _.;.., +1!. `K n •(f il: t.' flirt• p s� I lI I § t+ lt. + dI{ t s r.. t '�' �f I I I --', 9l ++ r�i t } i_k..tE•�'1F ) `f: .4 w .., ................_......__�. ..„......_-...... . �:syr >..:..-� l ..,#,i✓Kra'.'�+'"".a,. av.;':�....:. •, �«,��. sa..:_....'rs...• tr •. —" �;.+/nTr rdKd.'. „ . ii -__.��. -7,-- may.-- +a ':`�►,. '' ` �,`_.,,,• ,y R' - •«,'_ * { ^y 'ZIP".. -'°_..� . ? - lit - •+!l• ' ';,u•...'"a•;'.f,^ - -ra' • Size: 27558 bytes ‘-n. n L. Dimensions: 640 x 480 pixels Pin l In r 4t5eet Inca ,a,awiw r..J .� .44,4$7.77.4,« !'dye't Jp 'F �e! *US ! ' : «k tnw . .4_...i.. iii.:,..,.. 7„..,. 1/47 ...,(1: Ititil 9 , 1:ILL i . iiiri.... 1, . zi , 4M,4,1—b .:Cf...eArs.e .., ,.,,c;. irryl II „t Oil Vi ��ll L.�, -T. ` ..� iid�ta. l...,� �..1 yts'�;r .�.5-IS i r'_-�.il I. c it pp� L to a x a. €� w:��11C�7 ti,olvt, b....4 , . , . rii, . ..„.. --A. K1C011441IN 4' . ® � s 1A1 L``"CBE° E�D� { r : i fr °t T j *Mart{ v EE �'D. E` a .,n tL �V. � z a • q 4 Y f' • '{ ,.)...t.---.4„,,-,,...m. .� � I 4 '.1 -"4aKT�: � ��i • OJz'1na+++�++.....1��"w jr. " . 0 •@7`:. 'Ale i hiV , ,dfl�l ,,3, ► s *f1E{ .. - `( T £DEPT y;C F x LA 1 ,,...:,,,..,.',:-T.' ,./. ' I tr . ni 4 P k a Size: 42090 bytes Dimensions: 640 x 480 pixels \` Zb"c2 r }Ae(ity NC ac i �O = � � W � 1:3 ,� ;. • - O U o 't la -6) IT ., ,,,.. g co co p - 0- W (,) � ,2 o •mown> ILIt% o rig 144 . - 0_ s V taC O - O O ti V � iilVi . oC _ `tn C C _ '� O "_O ca 0 .7) N a) = C AO (0 0 En cn -p O = O ar c 4- i • C C - -o ) .7nc -a _ Q a -a) cn c o t a a a .o O m � z CD ao � o a--, O o LU c +� V - U ,_ I. -� .— `cn `n in N N .=C N _ ro ko o- in ca a ._ ,- L_ 1- ,_ s a) ca TO � o_ -1.J a) in I\ C > - C 1 o > o d- a) O J c(n CDT, H N (n C z cn :N a-+ >n '— a..+ a) - a 3 E c v +� O ca "0 ra o o 4":" a' 0J >, n VO E c >. O cp O a) i - U .L- O . ..+ o O �- a w cn a a s V O N .- = ca I I I O I I O DC ce O V _ ■ ■ ■ ■ r - C 0 _ ._ ,cn L.. m 0 >-. �, O ea a) d' 10 e M Ln .(1) 0iti 2 C O .4.-; N :. O (0 O N a M > �- 0 V Zf a o d- o f O- o- 8 4 j //a��J�, O ' Q O o c-- n ' W _ C N O a) (0 'a -o 0 V1 L- ce to t :la .5 CO = g : cu < ›- en N J a) 0 Cn O o L a cv _ , a L rz s- a-.+ !✓ N 4— u p a a-.+ ISZ - < in (O �' C -0 .( In o o (0 (Q to N N a. • -D C _ 4_ N ,C p - > N N - V fp C a L p u a) o a s. ,_ -• \ 0. CU > � Q a W CO CD Q E- Q Q I I I I V - ■ 0 ■ ■ _ a..+ *>7 u) i - W N CU N N c p a ry CU (13C E O N C 4 fa p n .6, .1- a) O a) a n 4-' O (13 i_ ate. ) s_ 4_, N a-+ ro 4_, N. P =cr O v N O a) Q) I co O 2 fl:3 4— C§Ceto L 8 in— gem> ; � cv C :72 N C Lk' Q gn U = a) ....6_, -a--= Q 5 p - co a _ = O 4_, i--� to , co • 0 2 C ._ V a_+ = 4O U .i 0 N C Q a) -0 o i 4-; N p s '-' g U .8 _ 73 Q V _ 'Q p i > N N Q aQ Q U to N . - a) a-+ , > ._ n c co ( o Q V c �- .— = N L its a) NV O1_ 1 > •� a > �C cn E E Q up.. Q .c O �n I' m m2 O = f— = 4- V I I I r a3 n` it n eTh O f- = o 0 zcu - aM a, a) o - oee - Z v U v) ,C Q c i O �� .- Q) L .. a..+ a_+ ^W c > ra 0 CID O 2 Q- ,, a") fo L fa CUn ) L nacL Rii 4_1 , i_ in / - `o R3 a IV Q Q� � C cn - Q O QJ L Q1 C L c .— .4J - C cnaN � � s .V Oo _ 'Q O 4 , N U a' u) O v� V N I V I I - ■ ■ ■ - O s- C9 0) ice 4-1 E a) V L '•O O c v1 O o a) M Q . - i- = a) .4; a 71 N - CO = c CU co CU CU 1-4 Q) •— cn .�J Q N "- •L O 03 C L fp a) N c CL C u cu Q • — _ = c Q •C O L v Elm 0hi it N _ C7o `n CD >_ cn a) � O � � _ Z b D j O � � C= O V O n •- _ •- N rn - C V C = N � N i C c Csr = 'C r a) a Q O O ci" Q V Q U < en Q I 1 1 0 0 - ■ ■ ■ ■ ^ a) p L. A . - U 15 a-,c To co in -6 a D Ncn cn o = N o _= 0._ 03 cNin a o c .c E •— 'i O 0) I- . ..... - la 0 y— z , _a Q m . .. V 0 a.., ~ 0 v) au V L N cn .C u ^ - s- _ cn E 1 - ro .c c = ra N ate..+ L ay a--+ Liii_ L L O (n C F- :.' O O O = ate.+ U CU a� c � a i' � n u E = ca mod- ¢ � 2 0 2 Sr0 >, c ooZ a 0 a oa; � Ru '� t' r CU CU rts- a' ,mss C al c ¢ oo 4-; c c O L t � ca) N in 0 V S. = r% 0 O O � U Q -0 - U) CO I I I I I • C •— pl _ ' 22 0 < C r. v a O 3. S VO •E a J a a••••• E- Z% n o° ° o = >, a> ≥ O N ._ 2 0 ge g C o_ •5 c C N d - E 03 0. O N ,cv = •- 1/4O U CO U = — .� N .� .� .0 S Q o � 2 N ID o N - C o c m a) .s .— O N Q ? Qa -6 N E - U Oc < I Q J ■ ■ _ C_ no J To _ L (0u_ V > a_. _ O I� L. N c° CIMINIM all (an —• C Ili - a " to (0 n C a N Cr) _ E 0 En ToQ J a, _ p Q O .— U - _ = N -'j '— -�+ ,—� -2 0 -- N - J ca O > a }- O = -5 -6`) E E 2' 18 a) _ = = 0 O O U) = oc 4 > o- H ■U . ■ ■ N .in - N _ ma N to cn 4-1 U N — N L V V cn (O ,0 N O w - O • t Q z J di .. - C o in = p 00 ao E _ I--i a) fUl CO.. C Q O N L _ a � 3 (OQ Q03 a0 5 J (,) O � �> c �— 0 0 $ 4-+ L 2 _ ea .o o = a o < 'a -v missal = 0 eery CC . � an 00 ,E c0 C .. � V N 0 C LRom n L M ai O o U H = N 0 N .in > pi 3 \ -O ,o O Q L � O CD a 0 L Q .�16 U ,^ �--� V �- ,_,03) u oar Of CL -t < cc - ■ ■ ■ _ cn E .6! co ' 'D 3 -D U. � a� ea O a) ca -0 - � c o a_ = ate-+ ,te_+ a) .. to O (n c cn 41.11 C .� CO .�+ 'C 45, CO c CU E = a a) > N CO C .V - cn O t N '� ^ O y_ ,tn E M i�.L op -a U, Q) N X W o -- - O, Q) N c c o w W � op W v 4; O f `� O (NiN C0 a N — 5. CO E D te. fo% 71) (36% tcrIni LI: : _ Q Q u) 4. O O ,_ C9 ,cn CO V R _ •- .in �O .- cp a) m a is -a .a) Q cn 'a W E on-i -+ .-, N co O v c a) C N v) a-+ o co l� co -0 E N .n > _o N OL co N a� Li. ." - C .O V O < E L9 fl N N on a) t,= co N N ,LU � J 4 sin O .�. 0- phi 4.1 o to I F—IQ D I I I _ ■ ■ _ ' d; o To 1 r 4 no E tin) .-, .- — (In _ C 0 � 0) _ C 7:50 Q a) " O ca c E O 4. E -ry:, u -0 0 a) > -a La- ._ o D to a, —I ._ O a a O — C " 2 = O - > •i cn V a U a-' ill a) 'E a * n -v a-' C a oo >. ° a a, a) .+-+ a E • — cn a) n cnt 8- _ i_ a u) 4_, Q —4_, .- D 4. C-- ^ L •_ ro V CL r a) M 0 L aw a) _ ~ H Oa U • ■ CU = o c o c i cn (n O _ ,O co Q _ a) o a � � � � a� cL- U 3 \� O • _ _ ._ ca a✓ ._ �- fp a � � E vE - 0 N 9 U (n C N A c c u - cn 0 ce O O a � r, c - 't :�+ r-, VC 7- CO W ._ C.7 0 ._ _ .O O E-:, -0 - V `t •c O �..' CO `� cnfo c� c = E C O Z cu t N nil — -0 E (O C V CV 2 b N O tn O CU 2 (3 Cr E NT2 0 (a -- (f) OCU . Any S_ ate O--+ CO" no N a) w = ry (n o a in Cis OC CC = W a = I— _ • • • _ - S. cn •c v cv •- CO cn o = V . . LL o o U) C V lam J a ) < a) O C a) N O Q t E b - •- - rQU N LPL Ce a) a N N Q a. ea V -� O Dee in a s ca = .� O O > 'Q u) cm a ce R3 -C C - a) 0 o i„ cn Li"' �� V c V -O V O ((n - in I >, >. O ec o c O V I I I I I cn .— ■ ■ e_. _ O : 4J it, _ a; a..,O ,.. ••- a) ,..: , z_ acn _ al to a c a) O •i = a o o a cv 0 (n O .6-1 ._ a Q) .u) z O E a) U no O ra Q 7) = c u) v Q1C -1-1p cn a) N 0 to as 1_ C _ -a d n O cv te a--+ i % r CU 5 O. Q `V 4-1 Co_ I I I Q �O ■ ■ to ti— a ) 'a a, Tum _c C 46 5. a 0 c c ≥ .i irS s .0 .a) ea O L a-' DC = a to i. ..E O CI L DC a, V) 0 •— = - Cl) 0 -C In m 5 O L -a C O O > 0 in a) o o n9v ,n O ars4, O ca cn .— = a, C +, 0 •C z m a) C � a) .- . 1--- kt 03 Q Oa CD in (in C a, au v o _ a ca c 'in �n .— O- cn cn N = qc - � - ¢ 0- a >. v co 00 1 1 1 1 _ al _ N 0 C N. 4.0 i o �--, a) 5 p U • 'E a O U r4 Q (1) O2 4- U {A- p Q .o o 76 ut O E o a z _ —1 N C a e; E Q v)CU ^ , O W ca -a o I. M � _ E z •_ C L a) �l1 Q -v O cn ,. .(5)) ins_ o tea) _ na .7, cu Fa � cc � n. o c •- a) (1) 1- _ U ca 'a .� >- c ca CO - .C CD c- cv -- o co- V = c.) a. -- a _ R) L L O U U a a ce I I ■ CU o E tn �- N L a Z' -a 0 C +_' _ O a) = E o Z 3wfl -H O 23` 4-1 'Oro J V = a Ocp > 4--' in W '( C2 8 -g a o - szu •01 -a -a u a co o i° = O J J 0 >03 (13 in > n a' •C a 0 in O -a U u — (0 0 cQ .c L. N �1 ,cn Cu LL ,c CO O .— c U O N a 0cu - V (n L y '� .- 0 E � c .� J O '3 a to i N -C : .C = ca — .C 0 O a- - V) 2 E a O -p O O c rn (O ca ca — C Z -fl .�.� O ca _ '= 0 `L 'CU rQ cn al. N a m N E - > J "O CD > 'Q m 'O _ 0 . E O .v Sao 0 n Za. . i (' E U c L I in I = U. Q O I I I _ N Ofn 7N O 751 N a � �+ �- •� cr O - E N ' ( Q . ..J .s. ra cdpZ C u O C XI in 0 Z d o 4N- W X C C Cn 0 m p fl. Q N _ C 4n m aD o W 5 o CUE ad E O C can^, V U uti - •— Ow M W Q +� 5 T cn N .- - G L •— 43 um o y... O = cn .- c a— co - C s- n a) n 03) CU 4- -p E L L 0 .g. (n o ca � � . 5 N = •� Oo •� � `° -c in O W U w ,-i U ' I ■ ■ ■ _ a) E O 0 o 2 C •i, N C c' z al aC ;-' .C— f~ � 5 o o O C C a, ,,, a) u - 0 ro ra .3 Qm O. fl. a--a o a) O a rn ri (CI a ?, (0 O ,-I f° = `° t V .L 03 CU To O 0 ) O1 > — (d (1) ,�� C .t E �- L C E O E 06 cn iv Q - ) 0 h .a-- O F- o f .O ii O V 4.2 (� a) 00 ca (RI Li .v a' .C O P3 O E = 3 c ca .E > CU V - •o o v a cu p 2 LL u E -c a ... CO U ro '= .. O v Cnj •L-' O a n -C -6 a1 'IN U :� = n ra O C .C C > V ;~ - •� 'V/ a. V E u, •U) '5 C •c C ii a) •c cn Q 2- o - .2 0- a -U) O co (6 > ra R) ra to a) ,L al cn C 1._ UQ U U 1. J5 GC L V , (0 1 I I a I 0 o0 • ■ ■ r i a) - O c ca ea ch a) a Q E a) 1/40 In In _ O O is di �O ? o is U 03 in -O n o co z a� N - (,/) Cn `° S O C oC C ` ) C. W '� in c c i E -v 'E c=a w- in In E o � � � � �. n COp_ N N N N � a (a _ p a.., . I' n O W CO 4. 4 D V '-a i O (! -�fp CO Ncy) al O (n C f ) V / V/ u E o Q 3- Q L '3 W co i W c L V 0 a) n3O " (0 o CO O p� O Q (n a) cn a) J E 0^ )� O- .{-.' LL O i C E C alt . (n W IIM a (1:1 p,. C a V a0i (n w a) S � Imo- H C0 p O - a Cl O 0 1 0- - i i a - C CO 11) O CO � � � � 'V = .0 4-,5 tt gzuc _ Q 0 J � � u � a 0 XO TD 06 V O v a) v - t O •}-a -Le- v) n O O -J C a- C MS co 8C) CV (UEb Q � >.C ii. -0 En O c - O 03 Lim n O ar 2 -20 C �C L a p Y U ._ .� O <C a) -v 0 2 a al p' mo I— (13 ca co U cn Q .. H I _ ■ ■ ■ r U L ra O _ a) � O N rtiO N • M L 6 Ni 43 'LI Q 0 a - cn w Q a) o .6' > a. � a) -C IP 0. U o saz � DC C os 1O C 00 , - �� -2 2 V "0 p _ ry_ < m 2E r ■ ■ O co c (0 .— .c L a) _ •� E c1 in cu�. V) L a '6 c - co .6J- -1-, W .= n N O LL C0J c .� L% c� cZQ '— V O -I-) °; I- -a CU fq .. v O ra C � .— CU - U) (O .- w Q v 4-1 _ = OV U (O o, � � ,a1 Cr a) ra a Q a 25 a1 a) CU a a c ) 4,..) > n .@ _ a .- a o Ct fp I a) O) - C a� ._ vaaEa0 .. � -a - N V V •- c its ^Oa, -5 - .L. Q O 03 cn 3 &I O m O •- a' = L. _ CA en V aU � nc ~ QEl2ao E ce■ ■ ■ - N O — y_ — U N Lfl •- .- cin .a N ce cm U)) = .O 4- 4J U 4) a L O C - -a~+ N N LL a a) - a Z E 1/40 to O .— — V) Q) .— > ..2., N •� so _ = 0 - - ,-i ih c- N OE V to a..+ _ 0 woo — O a) a H fat � •`� Ce •a � 0 -a .^ - — .� a-i a 03 a- , ,--I — ra U n N a U o U � � U .= 0 > Eg a)s. �= A0 - N N O = O CO CT' O C CC CCU MU O- oCUw ■ ■ ■ ■ 0 L Came 2 z ni V L in _ c c c o -a = c _ o LL me) W V 4-0 U) ca u yr o (7 O 03 a--i :a U r0 — a1 C (I) •- N = c cD a) i ._ o_ 5 = Op -C ni.1 I- tam Cr ' M N .C N Cn (n ma in O ce — — •- � z c� o .0S u U � > cLL- .�_n cr, ,_ - O •— 2 t O N O 0 O _ •= 9292 sa c c cr so; 8- v, m a a a_a) c J 0- CCD� CO -� ■ ■ ■ _ a) -c a) +-' (Q (D C -C 4-3 d 0 2 2 g 3 - E J a cn JD c Q t!1 = in a) cn p- _Ov) to•4.-• 0 a a o if tw 4-.) _ oC � oo a, cv .6, oL. ll La. I—I 0644_ O _ O_ _to c - � cnu = j > o_ I w .� ■ ■ - C C (a O ._ in -6) o - •—> 0 a' a c c O °' 'a) - 4-0 V 4-1 U) Z .V �O O a a a O 4-1 ._ ._ - - c V a a a) 0 u) (a z (a a) ,(n i .t S ca co o O a) a a c E0 - , a) `"4-j .O L •� CD to _E o ° Tu. a) " c = E 2 en c V (a V c-. = ca C - () tY 0 _c a., 10 4= a) .O•Q V LL - �-' •O O AE >. C cu :la - 0 N V O fl .� � E 4-1 - L •- •- L ca a •V 0 a =_ = _ E > � UQa Oct 'Sce tars = O ■ ■ ■ ■ ■ 0 `in 4-1 O 0 4 W .O -Oe a ( 4%, a' u cn C Q) Q w O o� ■ ■ . . — a ) ) ) ) ) ) § } C ) } t — 2 § in # coa .41 in. — © in of t a - / / 2 / - � k I k e ■ 2 R . ® ® Q ] f m o \ ) b * ) al k § D �ea C $ 2 \ j ; cn — k a - a f 2 A K - Itin kCO x � 2 � _� -L t ] ° cc $ Oa / � � k _k : r / 2 - \ L \ / § $ k / t _ a ) CT .... E _. 0 co / r _ . moo [ k / / a 8co 2 U \ / \ CO .2 \ g imm § ; I ® co Q / ) $ k E 2In 9 co § ;...• Co§ / / f % $ { } 2 ti CO di c j k - \_ m § / k 0— ( a / \ ° _ — 2 / ) $ ) ) k2 co D = e § § 7 e / 2 ) / \ \ \ \ k ) CC k § ■15 — 0) CO a.to 0 \ � O _ co � / 7 e � u )o \ k & \ R k / 2 ) tJ sI ) / — j J J„ i / mu- / 1 7 ' ; An / I ` / �' r -, r: t / it•6. e 77 / '' j(rli h f c;trs y T C. J = 5000 / „4 �3;' : .'a 7- `ti j. . - , -- I + / It'-4-1 ',6•11`s A --ii -7 \.\ ° / / i 'I i . I i 7 �y i -dt /: -., 7:I / , ' i_ / '`/ r / 4f�'1' ,I r /�DI-11 ii Q / i .� ` . \\ ' .I , I ` $ , �� I� r:I I I .fr _ • ,h. }may r. i i�-I 2 7 I V r r A I fV ‘)) .1 ._ CID \ A J • �5wfNy I"1 ,/ • / ` \� as a '• 7 s - • — J ri,0 40 v / 4 i I r �r Ate, , 1 i t } ter^ ,..c r //Ix:•� t- • :bob, .. f L >r+V � , sxa r N - Fd .,y f a, 4 fi�4 ig:*n N .... r - ( . )�S 1 C.. «-. ' ._2 .. 4 i I&It t -1.1. , -i....a,eY r j loci: h �3 7—£a .r-- .-- :MI:' ' - v" i.A y n• fl G -yrvc ' ;.i . `• `5 RN five.. R £,y :+, .4 q 1 Sr• «. m.. A s r i f. t t A 4 a a • r t` r V 4,E4z It, f e I 7 • c.�n , 443/4,44..„,� , „ li '_I fZ' * F I 4 .. v$ •dq d w c. 'IF M • . •I r 5 •-,� ^ 4 r A. -•=-714,,,:',/it , b.of iiiII M1i 4 € >€°8 z.;21,,, ^'r 7 .„ t ( . ••. t .. ,, �1 1 = ", 3 , I. liti r, 4ss 1 w d " PtS qP T & e .4 'g;�„ #� `d .t , a i�tl_ �, * 'ye'. t- r.t , m T — a ' . , =', 'R 1 x b .4 Y T' €, 0 - z+-a , .._ a 4 4 } 1 r I y N4 ,f i t> 1 (az x . f ',. t ".. » . X2',3.. t,. a kiY, Y • sd-sy=iA .'.tit kf 's8 k a y is, 13t- S J a lr _ y, nR( w j4F x^ T k 4 3 'F'-Y . ,;.-2,"-C1111-,,-- µ ii• Y F As S. - -b. t'a4. x f 'i M £ Y'as 1 _ �. r i a yxrr' P 3 ' Sc s i ' { y a _ - f.� 'j T 41 j r > ,`L� t`�. _ b , i 3 ".4 � 3Yk c , k. 2 * �., --•'':„.,1;-72,k 9 rt.!,,•.,-..:',1,4"-, H h`' ° 5. r 1 if ..# . • fit S'in`5+' Ili •• 3 '� l ti v } 4,'.,,,,,,,-f,-„t •. ..... . ! I ' I ,p „ !(4-v-�{ t ; ,_ iq a aM�.-. #Ati_ , s� , I I I 'fi . I *b " j{ Naas 4.. I ... p W a is _. I 4 � db -:.„,.:31 P� ' a 4 1 s + /4 ‘'... 5 � a{i y' t 1 ti:c !4 Jy �.. f * .+" `` 5 d r A 'afar ii i r r ,� aa Al c 5 =it.A ; Al — J Y " ' � � '" - ....- - ,dye_ s ,� t I H�;+ g. a.Alc`..` t.",,:,..,-;;R•_'7•••alavR = � mac ` µ '.4;,',' , . it it ' , r,y - ; a b 1, ` ` - _ ' . 1 r f e `r ,, L f mss_ ..1 y' . 4 ',1 p' 4 se , , sr ,Y f.._ rt v, " t'-4 , gyp . 1. art te J. 4.--744%31 41frs.e411774•61 , _a h '` L-.:.a -k- 'r--. ®2q, ilk _1 rig 1 k 1 .r il lair t , lot " -4 'P x " _ t ry 6 z t �`t�.�M �a'�'a t ' 'a...4',':.,.., 4 x :i^ G,v v �. ,..aFs"t."- .,ry� . � fly' r.- ( �r '3,1 . y.x ; "`r as'g r #e � . e' x; _c h l.-r_c i mar— r td k52 Pne�Y rs`.'af q �II K "VK ! qi rr • air ym P {s 1 3 ,Art/ w �.. x W r # % . zrk `=`ttis a r 0 r5k`' r Jai a _ • 1ti 4i r ¢, i r rYi { r .*,,,. p.- POW r r �} ! 2/ k..\ ? : - \ \ \.. y \ « \ \ . 9 t \ � . � y/: « . ' \ / } . % \ \ \ tom \ > } \ \ \ \ \§ . , / /< . y \ . \ . \ _ 4 1 \\° . \ ;C:,:-45,:i.: , . '• : . ^.,'......- * - % 02/06/2002 16:37 FAX 3038399800 HNTB fill 001 H N T S ARCHITECTS ENGINEERS PLANNERS '0.1118„„",1.,,, �-� .Ault.IJIO Dnlwl.0Anllt'A,n 110.202 February 6,2002 '34.17 t94.`tWn ILLY(.0103)¢+441100 Dave Perkins Calpine,Rocky Mountain Office 26 West Dry Creek Circle,Suite 600 • Littleton,Colorado 80120 Dear Mr.Perkins: This afternoon I received a Fax copy of the February 5,2002 letter from CDOT Region 4 Assistant Access Manager Gloria Rice-Idler to Monica Daniels Mika of the Weld County Planning Services Division commenting on the traffic impact analysis for the Rocky Mountain Energy Center. I did have the opportunity to speak with Ms.lice-Idler on the phone to help better understand her comments. Based upon my conversation with her,I offer the following comments regarding her February 5 letter SI152to WCR 51 Ms.ltce-Idler understands that the traffic impact analysis did not recommend the use of State Highway 52 for construction traffic. Her cormnents regarding State Highway 52 reflect her general concerns regarding existing conditions on that roadway,some of the very conditions that caused us to not recommend use of State Highway 52 for the construction traffic. • • Her reference to improvements at WCR 49 are to the left-turn lane being constructed atthe SH 52/WCR 49 intersection by the Hudson Industrial Park. She agrees that no improvements to the SH 52/WCR 51 intersection need be made since no construction traffic will use the intersection, per the recommendations of the traffic impact analysis report. • J-76 to WCR SI Ms.lice-Idler points out that the traffic impact analysis does not address the possibility that eastbound traffic exiting 1-76 in the AM peak hour may be so great as to cause vehicles to back • up the ramp into the I-76 through lanes. She is correct that such a queuing analysis was not performed. However,this possibility was considered during our review but dismissed as extremely unlikely given the relatively low AM peak hour ramp volume(fewer than 200 vehicles),the fact that opposing traffic on WCR 49 is very low,and that our analysis of the intersection operation yielded Levels Of Service of B or better dining the peak hour. For the same reasons,PM peak hour traffic returning to I-76 westbound will find little interference from the very low traffic volumes on the frontage road. As indicated in the traffic impact analysis report,all intersections can be expected to operate at quite acceptable Levels Of Service during both the AM and PM peak hours. Ms.Hite-Idler and I agree that however unlikely they may be, • any unanticipated operational impacts can be mitigated through an ongoing cooperative effort between Calpine,Weld County and CDOT. Sincerely c uErfll Matthew Reay,P.E. Associate Vice President tAse #1339 The /INTO Companies OI'IItW e.n.\,0 MIA.CA;xl LAMW'p CA:AI v13N TN,IIMYIN WVItIL. LA:0p.1il\..iA.MAMMY Ir.St;:CI IANI I!4IY N.TV,rIIiCAI:r,.lb CLA'ALAXII, Ni;I t lu.N1111s,,rylr I 1%Iik]PF0.co;ylyIWn,,,p;MAINS.1R1 V•VYNWII.YII r4.%I MTI.it IIiITM13WI.CT;CIOlIS111N.TN;IVIIHVAIYiUY.IN,IlO IN?... A. HN At.CIN.A11.A\YAlY1JY.1% ANMW;.MI.I. t At II:U'.,;ni b N NKVlr.L,,.N uMM:o K. MIHll.R:MILMrnt'sky.WI!AYNNI:Mtn 'growu.NN:'grow I.E.c TN mtg. Lim,IL NY.I IALIAYo OM.CA, IAIIOMA CI'1'1'.UL; I.I'I.IYUVI.HL9 Nil Islas L.: IN,LIIIRIII MIMING.I'A;W 11YIvirII.\II:r 0.AXW11.NC,KAC' .ACl'cu'l'l'.I'I':i.1\AN1v),O.S.1Y::.A.¢ Intanvulul r'\:3ZLTTLe.WA: u.I•n ..pt.,rum..w:I•Wtwwn.Inl:n sea,It a Kars.K1 Feb 05 02 03: 42p Shaaron Parker 303-536-9207 P.2 ® TheBeIl5 Land Company 1928 9th Street,Suite A,Greeley,Colorado 80631 PHONE:970.356-1618 FAX:970-392-1618 January 30, 2002 Mr. & Mrs. John B. Parker P.O. Box 119 Keenesburg, CO 80643 RE: Property Marketing Mr. &Mrs. Parker, At your request, I have examined the market conditions and potential for your property and home located at 25931 WCR 16, between Keenesburg and Hudson, CO. County records indicate your parcel as 150 acres, more or less; with Henrylyn Irrigation rights and a 1-W story custom home built in 1996 containing approximately 2,640 square feet, and associated outbuildings. While I have not conducted a full market analysis, preliminary examination of similar properties would place your property in the valuation range of$650,00 to $850,000. This value is an estimate only and to move further into the process would require a full market analysis. I believe I am conservative in this estimate. Of greater concern is the current market condition in your area. The pending application of Xcel Energy to construct a large power generating station within one mile to the west of your place has stymied the market in that immediate area. I have had the farm adjacent to your property on the west listed for over 15 months. Every potential buyer who has looked at the property asks, "What are all the signs saying'No Power Plant'all about?" Of course, full disdosure is an essential part of my business and I explain to them the basic preliminary plans set forth by Xcel in their application to Weld County. This single factor has all but stopped any serious interest in the property. It is my opinion that the existence of the power plant and its support structures, including large capacity transmission lines, will adversely affect property marketing, and thus property values in the future. I cannot at this time predict what the decline may be due to the uncertainties of what facilities and lines will actually be built and where they may be located. In any case, farm and residential parcels such as yours will be most affected. IIXNIBITT rte. xja Feb 05 02 03: 42p Shaaron Parker 303-536-9207 p•3 I suggest that you monitor the progress of this application and construction and we can make a more definitive evaluation of marketability at a future date when some of the uncertainties have been answered. In short, I do not think it would be wise to attempt to market your property at the present time. The only successful market strategy would be a steep discount in price that I could not recommend at this time. Please contact me if you have further questions or if I can be of further assistance. Sincerely, • i Ki Goble, ALC, CLS Broker r Feb 06 02 07: 28a Shearon Parker 303-536-9207 p. 1 06/13/1999 11:11 3034700508 PRIORITY COLD LENDNG PAGE 01 February 1, 2002 John and Shearon Parker PO Box 119 Keenesburg, CO 80843 RE: 25931 WCR 18 Keenesburg, CO Dear Mr and Mrs Parker. The purpose of this letter is to address the potential marketing and value influences upon your(the referenced) property by the completion of the proposed Capine Corp. power station approximately 1.5-2 miles west of your property. The completion of such a facility will almost certainly adversely affect the values and market acceptaaca of ail of the nearby residential properties. I can site a similar situation in thttone Tree development in northern Douglas County, Colorado. The residential dwellings built in Lone Tree in the early 1990's just northwest of the intersection of Lincoln Avenue and Yosemite Street were similar in all respects with the exception of large overhead power lines adjacent to the sites on the north of the subdivision. The builders of the semi-custom homes found it necessary to discount the prices of those affected properties by as much as 20% in order to successfully market the dwellings. The impact of a full power producing facility will almost certainly create at least the same negative influence as nearby overhead,power lines on the nearby residential dwellings in your neighborhood. r'r I have not conducted a market study regarding the current value of your home and land but as a Real Estate Broker and Certified Residential Appraiser, I would estimate the range of value for your property at $700,000 to $850,000. I would also estimate that the value lose created by the new power facility would be at least 10%and more likely 20% of the current value. In addition, the marketing time for your property would in all probability be extended due to a decreased number of potential interested buyers. Once again, this is a letter of opinion, and should not be considered to be a value estimate (appraisal) or Broker opinion of value of your property. Please feel free to contact me if I may be of further assistance in this matter. Sincerely itiv f98ed Da S, Re Estate Broker, Certified Residential Appraiser 34 South Spring Hill Street Highlands Ranch. CO 80129 EXHIBIT After Enron's Failure, Should Calpine Investors Worry? Page 1 of 4 e ^ Business N eedieet TIl a tens of thousands t EhtlieuflorktEtutes HOME Welo Past 30 Days A iQ CLASSIFi$RS Go to Advanced Search Sign Up for Neu Find a Job Post a Job ®E-Mail This Article g Printer-Friendly Format Real Estate SI Most E-Mailed Articles [J Single-page View Automobiles AllCla ' eds BEGI ) International December 9,2001 National Polkics 13usind� After Enron's Failure, Should Calpine - ia 8 Advertising Investors Worry? art i - World Business About i - Your Money - Markets By GRETCHEN MORGENSON New - SBIDpanx Research l insigh - Mutual Funds A s the Enron Corporation and ma - Stock Portfolio ' - Columns (news/quote)collapsed,filing for ,, ' ' Technology bankruptcy protection exactly one week ',,,, t..1&,- A een ago, companies that had done business " 4 sport$ with the fallen giant or that had emulated = `l. . . .' r ",` .^: New York Region `4.y -1 1 ' a' .. 1'l: y>., ^ Education its once-enviable business model rushed ,, VVeather to distance themselves from the . r Obkuaries - " A.P - " `"' aK. a'k NYT Front Pane wreckage. One of the biggest is the ' corrections Calpine Corporation (news/quote),the -� j. Special_A Nation nation's largest independent power ,,,s * ii.'+ ADVERT' Challenged >< ',*n3' S r speaalwnter producer and a favorite on Wall Street. `llitet'Jc" olympics _ , " Find More Low t '- Experience Orl Calpine differs from Enron in vital ways, EdkorialsrOp_E l but there are enough similarities between fa Readers'Opinions the two to have given investors Join Ameritradi Che le Nation nd something of a scare. On Monday,the The^u�atedN� a special offer. pan dcommitay after Enron filed for Chapter 11 Gov. Gray Davis of California, left,and Peter Cartwright, R YTi M ES.ddM reorganintion, Calpine's shares fell 14 Calpine's chief executive,at a BBnxuRgs percent,to$18.50,well below a March new power plant in Yuba City last Scottrade:P71 Automobiles 30 peak of$58.04. Not surprisingly, summer. Calpine is a Wall Street Rated#1 Broke Arts Books Calpine executives have been working favorite,but it shows some Movies hard—in a conference call with analysts similarities to Enron. Travel&vine and investors on Nov. 29, for example REPRINTS a Dining OTHER RESOURCES Click here to order F Home&Garden —to convince Wall Street of two things: Permissions of this Fashion&stylq that Calpine is no Enron, and that Get Stock Quotes New o sword/iGames moon's failure will have no financial Look Up Symbols Cartoons impact on it. e Ma¢azine_ 14. EXHIBIT Week in Review ,,.� Photos At the end of the week, investors seemed its.Portfolio I c 11nnny Research IL (I) College US.market.� Ins Markets Learning Network persuaded: Calpine's shares recovered, Mutual Funds I Bank Rates use*' 337 Job Market closing at$21.37 on Friday. The waters Commodities&Currencies Real Estate http://www.nytimes.com/2001/12/09/business/yourmoney/09CALP.htm1 01/31/2002 After Enron's Failure, Should Calpine Investors Worry? Page 2 of 4 specialNp 'tso were also calm on Wall Street,where 22 „ of the 23 analysts following the company still recommend it as a buy. Only one 9tchive Brownout? Help_Center firm, Bear Steams(news/quote), rates it As Colpino s more trad1116r1A1 NYT Mobile a neutral. NYT Store bustinwsrar Nulling electricity, &Cards 8 More hers waned. the cnmpnny About NYTDkt al But, in some ways, Calpine is looking become morn dependent on Jobs at NYTDi(U__al cenir ttxiily Irn4nig and Enrun. Online Media Kit more like Enron by the day. Its status as Our Advertisers a high-growth company, generating the Or`LNATINo INGOMC EGO CACII NEWSPAPER 30 percent annual earnings growth that Mrr;AWAIT NC ruM rlrcu zuc:rn Home Delivery I18ervice Wall Street expects, looks increasingly s'ta Electronic Edition doubtful, and it, too,has financial :xa Media Kit statements that are, at times, opaque. 20 VOT:Review PROFILE L_ III Review ProfileThe company,which this a no) E-rail Options y ar will LogQM produce 11,000 megawatts of electricity 0j T Version an hour from 50 plants for sale to I II III IV I It In municipalities, investor-owned utilities ? ' soot and other wholesale buyers, stresses only cstimv�oiry ri nuiS iRtvrr,rPOM the positive side of the comparison with 70,, Enron, its rival in Houston—its ability, t;o like Enron's, to trade energy. (Enron had ao only tiny generating capacity.) 4o ao "Calpine is in a unique position in that as we can provide our customers with their to operational needs and financial tools as mm o LL■ • well," said Paul Posoli, senior vice I II III IV I II Ill president of Calpine Energy Services, " ° 2001 the company's commodity trading arm. DrPCNDC NOT'ON ENRON Being both the producer of power and a Sown of Pore, trader of it, Mr. Posoli explained, means rrwahap Pwa to that Calpine canproduce returns to c,;i!avenuew Cabins:lot P hum awn rower shareholders well above those of a None Nine Average pi Ica strictly commodity power seller. month' menthe per megawatt &ndoa ondod hour sold 8801. 84104. But the-Enron mess could not have come :tool eat quarter at a worse time for Calpine. Its balance s I la sheet is loaded with$10 billion in debt, 31% more than half its total capitalization,yet Sin energy prices have plummeted. Forced to lower its own prices, Calpine CNHON OTItCn� says operating income per megawatt cau na Cav,ya",y hie oc t earl'/ hour has fallen 20 percent from levels rr'°n w at.urrrvv C1nri,uarmui Nov. during the spike in prices of 2000. The New York Times Even so, in the first three quarters of this year, Calpine almost doubled its earnings. hap://www.nytimes.com/2001/12/09/business/yourmoney/09CALP.htm1 01/31/2002 Atter Enron's Failure, Should Calpine Investors Worry? Page 3 of 4 Gains from trading energy commodities and energy derivatives made up the difference. For the first nine months of 2001, 10 percent of Calpine's$1.1 billion in gross profit came from derivatives trading activity,which because of the way the company accounts for the transactions flows directly into the income statement. Another 18 percent came from trading energy itself. But that kind of performance is impossible to count on, given the volatility of these markets. Enron was the biggest player in that field, and the resemblance is not coincidental. Mr. Posoli,who created Calpine's trading arm,came to the company from Enron. He spent most of his four years at Enron in the group that traded energy derivatives before joining Calpine in 1999. ALPINE shares other similarities with Enron —first and foremost, financial statements that are so complex as to be almost unfathomable. Mr. Posoli said Calpine,with its auditor,was trying to make its financial reports easier to understand. "We're working with Arthur Andersen to come up with a better way to present our financial statements," he said. "We're working on more disclosure." Arthur Andersen was also the auditor for Enron; the accounting firm is being sued by Enron shareholders and is part of the investigation into Enron's accounting by the Securities and Exchange Commission. Perhaps the most important similarity between the two companies is this: Both rely on the kindness of investors and lenders. Without deep support from the capital markets, neither company can operate. Calpine, which went public only in 1996,tapped public capital markets seven times this year, raising $5.7 billion. Enron, of course, lost investors' confidence through a series of missteps, most significantly its failure to disclose details of lucrative partnerships that its chief financial officer ran, but for which Enron shareholders were ultimately responsible. Calpine, based in San Jose, appears to have no such partnerships. But while Calpine is still in good favor on Wall Street, investors burned by the debacle at Enron are on the lookout for warning flags that they missed there but that may also be flying at other companies. How energy trading companies report to their shareholders on the exact nature of their energy contracts is probably the biggest area of concern. Indeed,the nation's top five accounting firms, including Andersen, said last week that they were developing recommendations for improved disclosure on these contracts. Complications arise for several reasons. Because markets for energy http://www.nytimes.com/2001/12/09/bu sin ess/y ounnon ey/09CALP.html 01/31/2002 After Enron's Failure, Should Calpine Investors Worry? Page 4 of 4 derivatives are not organized as more established markets, valuing these contracts is tricky. Accounting rules require energy trading companies to account for their transactions differently, depending upon whether trades are made to hedge underlying assets or to hedge cash expected to be received from customers. When trades are made to hedge underlying assets,they are called fair value hedges—and their gains and declines must be recorded in the income statement. But when trades are used to hedge expected cash flows, their gains or losses are recorded on the balance sheet as assets or liabilities until they are closed out. Continued 1 12 I Next>> Home I Back to Business I Searcli I Help Back to Top E-Mae This Article A Printer Friendly Format ®Most E-Nailed Anictes - _ Single hale Vietc Click Here to receive an introductory offer to The New York Times Electronic Edition. E-LOAN Rates Now oant NOME EQUITY Search O RATES CUT AGAIN! Copyright 2001 The New York Times Company I Privacy Information http://www.nytimes.com/2001/12/09/business/yourmoney/09CALP.html 01/31/2002 Bloomberg.com : Top Financial News Page I of 3 Bloomberg WW hot R n t x b 1 ? ear MONITOR HOME MARKETS MONEY LIFE TV RADIO CHARTS TOOLS HELP BLOOMBERG L.P. • STOCK QUOTES CalfOmlB Regulator Says NrpeplrlB tlt Reached on 'J,1 L5 Billion Power Bonds ri'e"-symhelrs,. 1 Top Financial News ookur, symbol u Y3f.,4c21 O*oo nrberg Mesas ARCnrve Li 4, vcr. F-Fnafl Newsletters NEWS TOD nrancial News O3/3113:45 Li ;N r!=d News Calpine CEO Cut Power Plans, Investors Not 3-Let Update Reassured (Update3) urc Trap•�IP n,n le fs By Daniel Taub \warnings Technolog,, San Jose, California, Jan. 31 (Bloomberg) -- Calpine Corp. Chief Executive Ana!',st Ratings Officer Peter Cartwright has been unable to reassure investors about the Roiitic s power-plant builder's prospects after Enron Corp. collapsed and Economies electricity prices declined. "ed Watch Co:umns Calpine stock is down 72 percent from a year ago, outpacing declines by rivals Mirant Corp. and Dynegy Inc. as investors soured on companies STOCKS that buy and sell power. Enron, once the largest energy trader, filed the Earn,n o Center largest bankruptcy ever Dec. 2, and U.S. electricity demand has slowed Tech Stocks with the economy. T3ccrs on the Move Chart Builder Cartwright, who told investors on a conference call today that the Worid indices industry was in "turmoil," has said Calpine doesn't hide debt off its oi. Exchance books as Enron did. He has insisted to credit- rating companies that his ,n the Dow business is sound. and he postponed $2 billion of power-plant projects to Sz.= T'CC Snanchot avoid a cash crunch. Today, Calpine reported a 17 percent drop in fourth- hot Movers quarter profit. e "There are a lot of negatives out there that are really weighing on the fracices stock," said David P. Brady, senior portfolio manager of the Stein Roe Young Investor Fund, which holds about 700,000 Calpine shares. "The RATES & BONDS Enron situation has just really spooked the world." Rates S Treasuries Calpine reported today that net income fell to $111.5 million, or 33 cents Government Bonds a share, in the fourth quarter from $134.7 million, or 40 cents, in the Mun:c'pai Bonds year-earlier period, the company said. Earlier this month, Calpine lowered profit estimates for the full year. CURRENCIES _ .--encv Pates In early afternoon trading, Calpine shares rose 9 cents to $11.15. . EXHIBIT _toss Currency Rates Z (Z) 41 Thrrencv Calculator Energy Slump EMU Update U51f`'#1339 Shares of power producers and traders have been falling mostly because COMMODITIES of a drop in wholesale electricity and natural gas prices. Unusually mild `•'pc=t `ct"'e rrut"res winter weather and the U.S. recession have hurt demand for power, http://quote.bloomberg.com/fgcgi.cgi?ptitle=Top%20Financial%20News&sl=blk&tp=ad ... 01/31/2002 Bloomberg.com : Top Financial News Page 2 of 3 Commodity Movers analysts said. In the fourth quarter, natural-gas prices dropped 59 Energy percent and wholesale power prices dropped 50 percent or more throughout the U.S. "We need to see the (electricity) market firming up a bit," said Gerard Klauer Mattison & Co. energy analyst Michael Worms, who has a "buy" rating on Calpine and owns fewer than 1,000 of the company's shares. "Calpine can then move forward on its construction program without having to worry about whether there will be enough capital available to them." Cartwright, 72, declined to be interviewed for this article. On today's call with investors and analysts, he said 2001 was "a year of tremendous turmoil" for the electricity industry, including the bankruptcy of PG&E Corp.'s Pacific Gas & Electric, California's largest utility and one of Calpine's customers. 'Very Hard' "Turmoil continued during the year with the collapse of Enron, another of our major counter-parties, and then a recession that hit very, very hard on the industrial demand for electricity," Cartwright said. Since Enron disclosed it kept debt off its books using special partnerships managed by its executives, other companies sought to reassure investors with more financial disclosure. El Paso Corp. plans to move $2 billion of debt onto its balance sheet after keeping it off using partnerships similar to those used by Enron. Its shares are down more than 40 percent from a year ago. Dynegy sold $494 million in stock to reduce debt. Williams Cos. delayed the release of its fourth-quarter earnings this week to review $2.4 billion in communications-business debt. Shares of both companies are worth half what they were a year ago. Borrowing Costs Calpine may have a hard time borrowing money to finance construction after Moody's Investors Service last month cut the ratings on the company's bonds to "Bal," the highest junk level, from "Baa3," the lowest investment grade. Further cuts are possible, affecting $11.6 billion in debt, Moody's said at the time. Calpine may need to curb its construction program even more if it wants to satisfy some analysts and investors. Though the company deferred the construction of 34 power plants, it left them on "hot standby." meaning Calpine can build them as market conditions and financing allow. With the economy weak, building more new power plants only makes sense in a few parts of the U.S., said Commerzbank Securities energy analyst Andre Meade, who rates Calpine "hold" and owns no shares. http://quote.bloomberg.com/fgegi.egi?ptitle=Top%20Financial%20News&sl=blk&tp=ad_.. 01/31/2002 Bloomberg.com : Top Financial News Page 3 of 3 Calpine's strategy "is a lot more risky" than the strategies of the company's competitors, Meade said. "There's a fear that if Calpine rakes more money, they will go ahead and build more plants." 'So Bearish' "The market sentiment is so bearish, all the market really wanted to hear, it appears, is that these projects are canceled," said Stein Roe's Brady. "Management was trying to be forthcoming and definitely was not rewarded for it." Cartwright said today the company is still evaluating its construction plans. "We're looking at the possibility of delaying, the possibility of canceling" plants, he said. Any plant Calpine builds would have to provide a return on investment of 18 percent after taxes, Cartwright said. Cartwright founded Calpine in 1984 with one geothermal plant. Today, it has 42,000 megawatts -- enough power to light 42 million typical U.S. homes -- in operation, under construction or under development in 29 states, the U.K. and Canada. Most of the company's power plants are fired by natural gas. "Right now, I don't think the stock price is a function of a management competence issue," said William Batcheller, senior portfolio manager at National City Corp., which holds about 837,000 Calpine shares. "The fact of the matter is they've delivered on what they need to deliver on." :EMC 3643 i u MsfT i 55.7R13 • I!. «_ .. ©2002 Bloomberg L.P. All rights reserved. Terms of Service, Privacy Policy and Trademarks. r^. http://quote.bloomberg.com/fgcgi.cgi?ptitle=Top%20Financial%20News&sl=blk&tp=ad_... 01/31/2002 The Sacramento Bee -- sacbee.com -- Calpine calls story'ridiculous' Page 1 of 3 Meps I Newslettemt I STOUP I S_nbtcx_dJ tojhe Print Edition I p.m I Wireless Delivery Sataee Adv_gn<ed Seprch Enter Keywon Ile&traumas: let Life. Captured doily t Dow +157.14 I t NASDAQ+20.59 I t_NYSE +8.65 I IINNews I Sports I Business I Polltis I Opinion I Entertainment I UtesWle I Travel I Women I Classifieds I Homes I Cars I Tabs I S1 `. i Sacbee:/ Business Powered by:accessBee--Internet h Sections: • 24-Hour Business News • Commercial Real Estate • 24-Hour State Business News • On the Job _ • 24-Hour Technology_News • Personal Finance .._= P IHIERNErSPECf - Agriculture • Real Estate :The Soen • Automotive • Small Business • Calendar •Technology • Careers/Find a Job • Wall Street Journal Business PE Award Winning 'The5;A "Irl' INDUSTRIES Horsing Indus remains robin In the Sacrament, ,r across the county Calpine calls story 'ridiculous' snapped up a sure, of new and resale Company's shares plunge after critical New York Times November and p keep the housing report. the economy's fen By Dale Kesler -- Bee Staff Writer Snowing,not n Published 5:40 a.m. PST Tuesday, Dec. 11, 2001 Christmas came e ski resorts this ye of potent winter s Calpine Corp., the San Jose-based energy producer long respected on Wall Street, on Monday blasted a New York Times story comparing Calpine with liMo agency Ii disgraced energy trader Enron Corp., calling the comparisons "ridiculous." patients California's HMO Calpine's shares dropped percent trading y day agency, the alt 1 p� almost 17 in Monde the after Managed Health 0 patients the Times said "Calpine is looking more like Enron by the day." Among other problems with he; things, the newspaper said Calpine is heavily in debt;=produces financial year, Goy. Gray C statements that are difficult to follow; and earned 10 percentof its profits from announced Friday trading complicated financial instruments called derivatives. It-alsasaid Calpine depended on-Enron for 23 percent of its revenue the first nine months of this Golden I CEO year. post Stanley C. Hollen, executive who ow Golden 1 Credit U Enron, the Houston-based energy company, filed for bankruptcy protection industry titan, wit amid disclosures that some of its investment partnerships had hidden piles of after 17 years at f debt and a series of questionable and exotic financial trading schemes. The Sacramental ling bash financial im Times did say Calpine doesn't have any of the partnerships Enron had. Mortgage rate Calpine held a 21-minute conference call with investment analysts to denounce to rise the Times' story. The pain continue /•� mortg age shopper rates to fall back I ultra"Calpine's business model is very different from Enron's," said Peter Cartwright, November. low levels of p r g fJevernbor. Calpine's president and chief executive. "Frankly, a comparison between Calpine 1 EXHIBIT http://www.sacbee.com/content/business/story/1302752p-1371136c.html / `3) lase-#19 The Sacramento Bee -- sacbee.com -- Calpine calls story 'ridiculous' Page 2 of 3 and Enron is ridiculous." Jack Sirard:$ shares from st While Enron became almost exclusively a trader in energy and financial seems smart m receiven contracts, Calpine has built its business the old-fashioned way, Cartwright said, ' I '°`t broke my stockbroker t rnker tt constructing low-cost power plants and selling the lion's share of the electricity Zimmer Holdings via fixed-price contracts. sell my ao snares company. I didn't owned the stock. Although it did plenty of business with Enron, that merely reflected Enron's d°' status as the leading energy trader, said Paul Posoli, senior vice president of Calpine Energy Services. A look back:S. surprises dom The year's binges- Calpine defended its use of derivatives and said its policy is to lock in profits automotive Amen one that didn't ha over the long term. The company also said it can cover its debt load easily, and its financial disclosures follow all accounting guidelines. Club Notes:Tc dealership hel The conference call came after the markets closed on a day in which Calpine of kids shares fell $3.58 to $17.79 on the New York Stock Exchange. Loral tai `'"to d° nundr etls ci tors children c hrisrma payoff from nume Besides the Times' story, investors also were rattled by an analyst's downgrade. season to: runs - Kit Konolige of Morgan Stanley lowered his rating on Calpine stock to "neutral" enthusiasts acre from "strong buy." g eea:it` of r of r.lercedes 'Benz of Calpine has earned a reputation in the past year as one of the most ambitious Auto Notes:Gi energy companies in America, embarking on a multibillion-dollar program of overcomes fur building power plants from coast to coast. Among its newest plants is a 500- the neat Race t, cross-country vin; megawatt plant in Sutter County, and the company is planning several more in race that has bees California. critical fiscal contl weeks, will have anniversary run it Gov. Gray Davis, who spent much of thisyear criticizing energy an organisers sa. p producers for the prices they charged the state, has gone out of his way to praise Calpine. Holiday spend Promise of de: "They have made a clear commitment to invest in California's future," Davis shoppers spokesman Steve Maviglio said earlier this year. "Their pricing has been far Buoyed b,a last- in holiday endic more reasonable than any other generator." cut prices even hi Nednestlad tc att shoppers and give The company plans to significantly expand its 90-worker administrative office in .ales one final on, Folsom. It has said it will add 60 workers, but it signed a lease on a building that can accommodate several hundred employees. Calpine earned $548.1 million, or $1.81 a share, in the first nine months of the year. That compared with $237.9 million, or 86 cents a share, a year earlier. Revenue jumped to $5.87 billion from $1.45 billion. But its stock, which hit $58 earlier this year, has slid in recent months, along with those of other energy companies, because of falling energy prices and other concerns. Calpine's closing price Monday was its lowest in two years. Asked about Calpine's criticisms of the story, a Times spokeswoman said, "We will review any specific assertions of error that come to our attention, but so far none have." About the Writer http://www.sacbee.com/content/business/story/1302752p-1371136c.html 01/31/2002 The Sacramento Bee-- sacbee.com -- For power producers, it went from go to slow Page 1 of 4 Map_,I Newsletters I Shallop I Substtibe to th&Print Edition I Traffic I Wireless Delivery r Sadoee Advanced_Search Enter Keywon The Sacnonento plit Capsized daily. In the mood for a 2002?E I News I Sports I Business I Politics I Opinion I Entertabiment I lifestyle I Travel. I Women I Classifieds I Homes I Can I lobs I St n Sacbee:/ Politics Powered by:accessBee--Internet ft Sections: • 24-Hour Political News • California Elections • National Elections INTERNET SPECI • California Politics • National Politics - The Seen Politics For power producers, it went from go to slow the Sam; By Dale Kasler -- Bee Staff Writer War unites Co Published 4:55 a.m. PST Sunday, Dec. 23, 2001 but briefly WASHINGTON - congressional ses, with Republicans i The electricity barons who ruled California-for mu&of-the year arentlooking so They looked forwa powerful these-days.. enthusiastically err with the new Repi presidents ag end Falling electricity prices, a drop in energy consumption and the stunning collapse of their pack leader, Enron Corp. have punished power generators' Flight school r stock prices and, in some cases, reduced their credit ratings to junk status. terror alarms- Under pressure from Wall Street to improve their cash position, several have WASHINGTON -- ' Minnesota flight it cut back on construction plans and started shedding assets. phoned the FBI in alert the agency t might be taking le "The go-go time ... has now stopped," said Gary Ackerman of the Western jumbo jet, he did Power Trading Forum, an association of generators and marketers. "Attitudes dramatic way: "Cr how serious this change." Instructor told an 'This man wants t 747. A 747 fully k The latest to retrench Is Mirant Corp. of Atlanta, one fuel could be user of the major power plant owners in California. On weapon!' Thursday, a day after Moody's Investors Service For go I two downgraded its credit rating to junk, Mirant said it Trs'ee power nt from go would raise $4 billion in cash by selling stock and The electricity bar assets and scaling back capital spending. California for muc aren't looking so I days. Dynegy Inc., El Paso Corp. and Williams Cos. have announced similar restructurings, all with an eye Web tobaccos toward persuading Wall Street they're not heading teens targeted down the same path as Enron. While some`orne making it harder f people to buy dga online retailers an "We've had our death in the family with Enron, and too easy,say a p the collateral damage has been far reaching," said lawmakers pushin investment analyst John Olson of Sanders Morris to restrict Interne sales. Harris Inc. in Houston. Agriculture se Among those hardest-hit-is Sart Jose's Calpine Corp: a busy first yea WASHINGTON -- is breakina new a El EXHIBIT http://www.sacbee.com/content/politics/story/1367043p-1436505c.html 04) itt3�1 The Sacramento Bee -- sacbee.com -- For power producers, it went from go to slow Page 2 of 4 ;t,, +oltt,you}, . ,__at The company was tarnished by a New York Times Agi cu„nre Dope Customer Support have story comparing it to Enron. And its ambitious power- :net also enrourt T""""'v; thelpful. ,nl plant construction program -- lauded by California e.o1° °°'°``' n,:.de me free)that f wasn't the dumbest officials as a public service back when supplies were Apple on the tree. Tell tight -- has become a source of criticism among Demaud for sr them they are great and causes shortest veep giving them pat, nn investors in light of falling electricity prices. chorrages ri a ha the back for us. net sac 'that -Actual acre 5Bee. infant and young ruston r Calpine denies the Enron charge and defends its against dealt,/d;•. construction schedule, but it's been forced to reckon rneninq t and pr fort -44w, with a 74 percent decline in its stock price since April donors s t° dose- , m Lip and the lowering of its credit rating to junk. can kern a ri- On Wednesday, it raised $1 billion in fresh cash Air hoard war •• kitchen polluti through a debt offering. "That's a first step" toward ,irt.rn a, po ut ,„„r e, restoring investor confidence, said spokeswoman vt,r, to think r.icc Katherine Potter. Calpine stock closed at $15.01 roes to r [iron d ,, e or hotrod tt es Friday. Cl/ Split court rep ti•• The downfall of the once-mighty generators goes row appeal yew beyond the Enron effect. It also illustrates the SAN FRAlicar- C aPtlUnlimited increasing volatility of the electricity industry. erti r t t Se ��yjronau n c Iateruet ` County mar ures :adm u q roc uric,"They have this reputation of being these rapacious ;n thr death or in Alccess monopolists who stick it to us all the time, but they 011P1 t• F"` Starting at can't do it all the time," said Peter Navarro, an $10.96• economist at the University of California, Irvine. Audit: power< ,0•-- ,,y flawed per.month. California kid fled i 5 email accounts & "You get these brief, shining moments" when supplies ertr t contra- Get the best sears 10 MB web space are tight and generators reap big windfalls, Navarro the pt drisra i,r,,, Local access said. "But when markets are weak, they only do so- matem o a erm' numbers so. mnrsda.. throughout "The market itself is very, same-des. sign very soft for electricity. voters propos( all of Now is not a good time to be selling into the (power) Potential arr. .. California. grid." last run nt *MISS pries appl.as to ana war ) to register nt atte pra-w*paceaurnnefiy. Just a few months ago, thepowergenerators seemed heo a an It.iat:•, 9 he<,� �, � -.n ., to be on top of the world. A new breed of companies, born to deliver power in the rapidly deregulating U.S. energy markets, rushed into California as the state's new deregulation plan took effect in early 1998. They spent billions to buy most of the major utilities' power plants -- a key feature of the deregulation plan -- and were handsomely rewarded when electricity prices reached unprecedented levels in mid-2000. Their profits rose far beyond their expectations, elevating their stock prices. Their success turned them into villains, at least in the eyes of some California officials. Gov. Gray Davis -- forced to spend billions of state dollars to buy the generators' electricity on behalf of the state's financially crippled major utilities - - routinely blasted them as out-of-state profiteers and robber barons and accused them of deliberately manipulating California's market:They denied the charge. Then the energy market changed. Prices fell from as much as $300 a megawatt hour in May to about $50 in June.A megawatt hour is enough electricity to http://www.sacbee.com/content/politics/story/1367043p-1436505c.html 01/31/2002 The Sacramento Bee -- sacbee.com -- For power producers, it went from go to slow Page 3 of 4 r power about 750 homes for an hour. A mild summer and a heavy conservation effort helped bring prices down. So did the state's decision to buy scads of energy through long-term contracts, many experts believe. The capper may have come in late June, when the Federal Energy Regulatory Commission imposed strict price ceilings throughout the West. Although the generators' earnings generally held up -- they had locked in healthy profits via those long-term contracts -- their stock prices began tumbling as investors feared the California disaster would halt the pace of deregulation elsewhere. Calpine shares, for instance, dropped from nearly $57 in early April to around $32 in early September. What happened next shocked the entire industry. Enron, one of the driving forces behind deregulation in California and elsewhere, self-destructed amid charges it had hidden billions of dollars of debt through a series of secretive investment partnerships. The Houston-based energy trading giant filed for Chapter 11 bankruptcy proceedings after crosstown rival Dynegy pulled out of a proposed merger. The Enron fiasco brought energy stock prices even lower; Calpine's got to $10 a share. It didn't help when the New York Times ran a lengthy story comparing the two companies, saying Calpine "is looking more like Enron by the day." The story said some of Calpine's financial disclosures, like Enron's, have been difficult to understand. It also pointed out that some of Calpine's profits, like Enron's, have come from trading financial instruments called derivatives. Calpine, in a series of conference calls with investment analysts, angrily denounced the story, and many analysts concurred. "Frankly, a comparison between Calpine and Enron is ridiculous," said Calpine Chief Executive Peter Cartwright. Nonetheless, the big three credit agencies -- Moody's, Standard & Poor's and Fitch -- started taking a harder look at the balance sheets of Calpine and its brethren. Debt loads that used to be acceptable started triggering downgrades to junk status. Rating agencies "have effectively raised the goal posts and moved the end zone," said Olson, the Houston analyst. In reducing Calpine's credit rating to junk status a week ago, Moody's said the San Jose company "has acquired a significant debt burden" that has to be shouldered "in the face of modest operating profits." Junk status means a company's bonds are considered highly risky; they won't be purchased by many major pension funds. Calpine's Potter said the company's junk status is a "ripple effect" of Enron's bankruptcy and doesn't reflect Calpine's strength. "Our fundamental business hasn't changed," Potter said. http://www.sacbee.com/content/politics/story/1367043p-1436505c.html 01/31/2002 The Sacramento Bee-- sacbee.com -- For power producers, it went from go to slow Page 4 of 4 Yet some industry analysts believe the landscape has changed. Electricity consumption has drop ped pped by an annual rate of 3 percent since Sept. 11, and Calpine's effort to populate the country with generating plants no longer makes sense, Olson said. Ackerman said it's logical for generators to throttle back their expansion plans as energy consumption slows. But he believes the conservative approach will fade when shortages pop up again. Meanwhile Calpine, whose plants generate 11,100 megawatts of electricity, is building another 17,000 megawatts of capacity. It generates 2,400 megawatts in California and plans to double that output. "There's a need for power," Potter insisted. "We have an aging power fleet, not only here in California but in the country." About the Writer The Bee's Dale Kasler can be reached at(916)321-1066 or dkasler@sacbee.com . Contact Us/Feedback I Privacy_Policy I Terms of Use News I Sports I Business I Politics I Opinion I Entertainment I Lifestyle I Travel I Women Cars I Classifieds I Homes I Jobs I Shopping. Help I Maps I Newsletters I Site Map I Subscribe to the Print Edition I Traffic i Wireless Delivery About Us I Advertise in The Bee I Advertise Online I Contact Circulation Customer Service I Events [ Sacramento Bee Web sites ] MovieClub.com I Sacbee.com I SacClubCams.com I Sacramento.com Copyright ©The Sacramento Bee/ ver. 4 http://www.sacbee.com/content/politics/story/1367043p-1436505c.html 01/31/2002 Investigation of Calpine Corp.'s Reporting Practices Page I of 2 GREEN FAUTH & JIGARJIAN, LLP . , ATTORNEYS Al LAW • SAN FRANCISCO .tort. ..... _ PURE ENTIN HYRUM R AND I WE TSR IN A TI Tl'NWI' HOME Calpine Corp. Stock May Have Declined Following Improper CONSUMER CLIENTS Reporting of Earnings INVESTOR CLIENTS I Company Said To Have Ignored SEC Warnings INVESTIGATIONS ABOUT CLASS ACTIONS Green Fauth & Jigarjian, LLP is investigating potential wrongdoing concerning accounting and financial reporting practices employed by Calpine Corporation (NYSE: PUBLICATIONS CPN), which may have artificially boosted the net income figures of the energy EMPLOYMENT producer. At issue is the way in which the company reports its Earnings Before Interest. EIE Taxes, Depredation and Amortization, or"EBITDA." Normally, items are included in EBITDA only as allowed by Generally Accepted Accounting Procedures ("GAAP"). In REPORT A PROBLEM an April 19, 2001 letter to Calpine, the Securities Exchange Commission complained that the company's version of EBITDA presented in its annual report included items not normally part of EBITDA: "In future filings, either remove all of the other reconciling items re retitle " the non-GAAP measures to accurately describe what it actually represents. . . . At a minimum, retitle the non-GAAP measure as'EBITDA, as adjusted."' Calpine promised to mend its ways. But, some subsequent filings exhibit the same defect,with non-GAAP items included as part of EBITDA without a warning that the EBITDA employed is not orthodox. In addition, as reported December 12, 2001 on Yahoo! Finance, Calpine has admitted its use of non-standard accounting practices, but has not been forthcoming with investors concerning exactly what non-standard items were added to net income to improve its numbers: "Calpine revealed on the call that it uses its own in-house method to calculate its leverage. This unorthodox method, which adds $700 million paid for a Canadian gas company to equity, makes the company's leverage ratio look lower than it actually is. At one point on the call, a Calpine executive couldn't detail what was added to net income to get to the company's earnings before interest, taxes, depreciation and amortization (EBITDA) number." The company's stock is presently trading near a 52-week low. If you are an investor in Calpine and would like to discuss your rights, or for further information, please email Robert A. Jigarjian at raj@classcounsel.com, or call us at the number below. Green Fauth & Jigarjian, LLP 235 Pine Street, 15th Floor San Francisco, California 94104 :Tee hone: 415-477-6700 Fax. 41 77-6710 g EXHIBIT Email: raj@classcounsel.com http://www.classcounsel.com/news/calpine.cfm �s) Mk##133e1 d.0.11J111G uciay3 CAIJ0.11J1u111)10.113 `1/ 1V/ GVVGJ 1 abc 1 u1 r> HOME > NEWS > MERCURY NEWS Search.... ISV.com...ri O NEWS I OPINION I RESEARCH I CAREER I HELP ADVER Posted at 9:23 p.m. PST Wednesday, ime cwt Jan. 16, 2002 Calpine delays expansion plans Controversial Metcalf plant in S.J. likely to be put off BY CHRIS O'BRIEN AND MIKE ZAPLER Mercury News Stung by falling energy prices, San Jose energy producer Calpine said Wednesday that it will review its ambitious plans to build dozens of power plants across the country. The move could delay many of the projects -- including the controversial Metcalf Energy Center in the company's hometown. Calpine also warned that its profits will fall short of expectations for 2001 and it will make less money than expected this year. As electricity prices soared in California just one year ago, Calpine announced a stunning construction plan 1 EXHIBIT that would have made it the largest energy generator r 1 in the world, with 70,000 megawatts under its control use. http://www.siliconvalley.com/docs/news/.../calpinon702.ht 2/2/02 �.a1Yu1c uciayJ CApa11JiV11 pia11J 1 abC G Vl by 2005. At the time, the company's stock was leaping, along with the stocks of most of the energy industry. But starting last summer, energy prices began to collapse and California avoided the rolling blackouts that had widely been predicted. While many competitors canceled new power plant projects, Calpine remained defiant and refused to reign in its expansion. When Enron, the Houston energy trader, began to collapse last fall, Calpine couldn't avoid the ripples. Calpine's stock continued to plummet as the company fended off implications that it could be susceptible to the same accounting and finance troubles that plagued Enron, a charge the company denies. Bonds downgraded Last month, ratings agencies Moody's Investors Services and Fitch both downgraded Calpine bonds to junk status. The move made investors nervous that the company could face a financial crunch at the same time Calpine said it would begin to renegotiate energy contracts it had signed with California's state government. The company said it would finish 27 plants already under construction, including five new plants in California slated to come online in 2002 and 2003. Calpine said it would continue planning for another 34 plants -- including Metcalf and 12 others in California -- and then reassess market conditions to decide when to begin construction. The company was adamant that it would not cancel http://www.siliconvalley.com/dots/news/.../calpinoir7o2.ht 2/2/02 c uipiiic uciay o CA UL131W! piano ki/ G.) 1. asc ,5 ui any of the projects, although the evaluation process would likely delay construction for some period of time on each project. From Calpine's perspective, it's not a question of if they will be built. Just a question of when. "We have reviewed these projects in detail," said Peter Cartwright, chief executive officer of Calpine, in a conference call with analysts. —We don't anticipate canceling any of them." The announcement Wednesday was applauded by analysts and investors who drove the company's stock up $1 .09 to close at $14.94. "The one thing we were curious about was why they didn't do this all a lot sooner," said Gordon Howald, an energy analyst at Credit Lyonnais. "A lot of their competitors have thrown in the towel and now they've finally done the right thing." Calpine owns plants that generate about 11,100 megawatts of electricity -- enough for 11 million homes. The plants under construction will increase that capacity to 23,200 MW by the end of 2002 and 26,300 MW by the end of 2003. The projects subject to review and possible delay would add another 15, 100 MW to Calpine's portfolio. Cartwright said the company will continue the administrative and planning work to develop and license the other 34 projects, including Metcalf. Once a project is ready to begin construction, the company then will decide whether to break ground or delay building until the economy and energy prices rebound. Calpine executives said the possible delays would http://www.siliconvalley.com/dots/news/.../calpinoii7o2.ht 2/2/02 :.•C!!' Ps 11C UC10 V f:Aucelu .t.nt �liGlli.? `I' !.!J` L`JVG! f C1 ,C 4 ut / pots hall\ cue its expec ed capital spending in 2002 by. $' billion. The company now said it expects to spend about $3 billion building power plants in 2002 and $800 million in 2003. Role in state California officials said they don't expect the Calpine announcement to have any impact on the state's energy situation during the next two years. five plants under construction in California il. nr‘w the state with an additional 2.300 N4 V in tr,e next : .o years -- less than 5 percent of the state's expected peak demand. The company has another 13 planes totaiinry 5.200 megawatts under development in �'a itori►ia_ nius an unspecified number in !cv 'Op1Tier ► that `i hasn't announced. Those later projects likely would not ccme online untfl 2004 at the earliest. Until then, the state's energy :.ommiss�on believes there are enough power plants being built to meet demand through 2003. We are monitoring the generation that is coming online," said Claudia Chandler, a spokeswoman for the California Energy Commission. We're aware that when you have a deregulated market, you go through boom and oust cycles.'' The prospect of and, potential delay for the Metcalf plant had residents of nearby Santa Teresa rejoicing. The opponents said. undercuts Calpine's main argument to state regulators that there is a pressing neeii for the project. Here Calpine was saying how urgent it is that we have this project in San Jose now, and then they turn http://www.siiiconvalley.comidocsinews/.../calpinott702.ht 2/2/02 quit :i:c uciuy 3 CApa11 1uii JJ1U11a t,l/ iu/ GuuGJ I cask_ a vi around and say we're waiting to build it," said Issa Ajlouny_ a leader of the Santa Teresa Citizens Action Group_ It doesn't sound like an emergency to me." The 600-megawatt, natural gas-fired plant in rural North Coyote Valley was a defining issue in city politics for more than a year. Mayor Ron Gonzales bucked most of the city's business establishment and opposed the project, saying it would be located too close to a residential area. In November 2000, he led the city council in a unanimous vote to reject the plant. But as the state's energy crisis deepened last spring and it became clear the California Energy Commission would approve the project over the city's objections. Gonzales reversed himself and endorsed the plant David Vossbrink, a spokesman for Gonzales, said the mayor still supports Metcalf and expects it to be built. Calpine had planned to start construction of the plant as early as last October. That timeline was pushed back to early this year, in part, by several lawsuits against the project filed by neighbors and environmentalists. Wednesday's announcement will cause another delay. Spokeswoman Lisa Poelle said it is unclear for how long the project would be postponed. Calpine's license from the energy commission requires it to start construction of the plant within a year of its approval, or by Sept. 24, 200?. If Calpine misses that deadline, it would have to appear before the energy commission again, Chandler said. Calpine said it still plans to break ground this spring http://www.siliconvalley.com/does/news/.../calpinoil7o2.ht 2/2/02 303-288-2637 1r,..) 'ti( ---T -- GREEN ACRES TURF FARM, INC. �\ '4 . 12511 East 112th Avenue *Lee_ Henderson,Colorado 80640 Weld County: This letter is written to support the development of responsible energy development for the state of Colorado, through the construction of the Calpine plant outside of Hudson, Colorado. We view this as a necessary plant to increase the energy supply for the residents of Hudson and the state as a whole. Dave Perkins is working diligently it seems to incorporate the needs of the town into the Calpine planning. Our support is based upon a desire to even someday see the town of Hudson receive benefits from all that the plant can bring to its neighbor, monetarily, architecturally, and employment opportunity. Having visited with Mr. Perkins, he has represented Calpine as a company with integrity and supportive of rail opportunities for Twin Peaks and its desire to benefit the town revenues. Our hope is that if this is approved that all parties will benefit in making Colorado an energy sufficient area and that its citizens will benefit in its overall quality of life-from homeowner to farmer and business community. ,i(e Respectfully, „/ �/ T. Aigaki President of Green Acres Turf Farm r 4 EXHIBIT AR us.tw, Hello