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California Coastal Commission Deems Carlsbad Desalination Project Application Complete

Posted on: Thursday, 26 July 2007, 00:24 CDT

Poseidon Resources Corporation today announced that its application to the California Coastal Commission for a Coastal Development Permit for the Carlsbad Desalination Project has been deemed complete (Coastal Commission letter attached). The determination by the Coastal Commission staff clears the way for a project approval hearing before the Commission in November when the Commission is scheduled to convene in San Diego County. The $300 million desalination plant will have a capacity to produce 50-million-gallons-per-day of high quality drinking water and will serve 300,000 residents annually.

In August 2006, Poseidon filed its application for a Coastal Development Permit with the Commission's staff. During the eleven month process, Poseidon provided the staff a thorough analysis of the project and its consistency with Coastal Act policies, based on more than seven years of environmental research and study. In five separate submittals, Poseidon covered issues related to the need for the project and its relationship to existing water conservation and water management plans; environment; land use; growth inducement; public access and health and welfare; power plant operations; project mitigation and alternatives; project economics; plant ownership and operation; product water purchase agreements; and energy use and production.

"We have provided the Commission's staff with voluminous information based on almost a decade of environmental and technical studies conducted by industry experts and scientists including those from the Scripps Institute of Oceanography," said Poseidon Resources Senior Vice President Peter MacLaggan. "We are grateful staff has concluded that our application is complete and we look forward to a hearing based on the merits of the project before the Commission in November," said MacLaggan.

The California Coastal Commission was established by voter initiative in 1972 and later made permanent by the Legislature through adoption of the California Coastal Act of 1976. California Public Resources Code Section 30001.5 states that the Commission's statutory obligations include "Protect, maintain, and where feasible, enhance and restore the overall quality of the coastal zone environment and its natural and artificial resources, and; assure orderly, balanced utilization and conservation of coastal zone resources taking into account the social and economic needs of the people of the state, and; maximize public access to and along the coast and maximize public recreational opportunities."

"The Carlsbad Desalination Project is a win-win for the community," continued MacLaggan. "We have spent most of the last ten years talking about the importance of developing a reliable, drought-proof water supply for San Diego County that is affordable and locally-controlled by public water agencies. However, it's important that we do not overlook the desalination plant's coastal and environmental benefits," said MacLaggan.

As part of Poseidon's project development agreement with the City of Carlsbad, four parcels of land totaling approximately 15 acres currently owned by the power plant's operator will be dedicated to the public for coastal access, recreation and marine research. Poseidon has also offered to include as part of its Coastal Development Permit a condition that the company will assume responsibility for the stewardship of the Agua Hedionda Lagoon -- one of San Diego County's environmental and recreational treasures -- when the existing Encina Power Plant is decommissioned. This commitment includes restoring 37 acres of Lagoon habitat.

"The Carlsbad Desalination Plant is absolutely essential to the long-term health of Agua Hedionda Lagoon," said Eric Munoz, President of the Agua Hedionda Lagoon Foundation. "Poseidon will assume the responsibility as the Lagoon's steward and ensure future generations have the opportunity to benefit from the nearly 400 acres of critically important wetlands habitat that makes up the Lagoon, as well as enjoy aquaculture and fishery restoration programs and the educational, research and recreational opportunities," added Munoz.

Poseidon Resources already has entered into long-term water purchase agreements with four San Diego County public water agencies -- Carlsbad Municipal Water District, Valley Center Municipal Water District, Rincon del Diablo Municipal Water District and Sweetwater Authority. Collectively the four public water agencies have subscribed nearly 70% of the plant's 50-million-gallons-per-day capacity.

"This action by the Coastal Commission staff is both prudent and necessary given the already tenuous water supply situation in California," said Gary Arant, General Manager of Valley Center Municipal Water District and San Diego County Water Authority Board Member. "Approval of the project by the Coastal Commission in November would allow this critically needed water supply to be in place as early as 2010."

Poseidon Resources specializes in developing and financing water infrastructure projects, primarily seawater desalination and water treatment plants. These projects are implemented through innovative public-private partnerships in which private enterprise assumes the developmental and financial risks. For more information on Poseidon Resources and the Carlsbad desalination plant visit our website at www.carlsbad-desal.com.

STATE OF CALIFORNIA---THE RESOURCES AGENCY

ARNOLD SCHWARZENEGGER, GOVERNOR

CALIFORNIA COASTAL COMMISSION 45 FREMONT, SUITE 2000 SAN FRANCISCO, CA 94105-2219 VOICE AND TDD (415) 904-5200 FAX (415) 904-5400

July 25, 2007

Mr. Peter MacLaggan Poseidon Resources Corporation 501 West Broadway, Suite 840 San Diego, CA 92101

RE: Notice of Complete Application for Coastal Development Permit E-06-013 for Proposed Desalination Facility at the Encina Power Station in Carlsbad

Dear Mr. MacLaggan:

Thank you for your letters of July 6 and July 16, 2007 responding to Coastal Commission staff requests for additional information needed to complete your coastal development permit application for the above-referenced proposal. We have now received all the information and documentation needed except for the required leases from the State Lands Commission; however, the Executive Director has waived this filing requirement pursuant to Section 13053 of the Commission's regulations. With the information you have provided, and with the Executive Director's waiver of the required State Lands Commission leases, Commission staff has determined your application is complete.

We understand that Poseidon would like to have the Coastal Commission hearing for its requested coastal development permit at the Commission's meeting scheduled for November 14-16, 2007 in San Diego. Because we have filed your application as complete, we need Poseidon to complete the attached waiver to allow the hearing to occur more than 49 days after staff's determination of completeness.

Additionally, with staff's determination that your application is complete, we understand Poseidon will withdraw its request for an August hearing before the Commission on whether the application is complete. Please provide written confirmation of your withdrawal of that request.

Thank you for your attention to these items, and please let me know if you have questions.

Sincerely,

Tom Luster Energy, Ocean Resources, and Federal Consistency Division

Source: Business Wire

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