SUMMER 2002

TOP STORY: FOURMILE HILL LAWSUIT FILED!

On June 17th our attorneys at Earthjustice Legal Defense Fund filed a lawsuit after the Interior Board denied our appeal at the end of an 18-month process. The lawsuit challenges the May 2000 joint decision of the BLM and Forest Service to approve the Fourmile Hill development, and is on behalf of the Pit River Tribe, the Native Coalition for Medicine Lake Highlands Defense, and the Mount Shasta Bioregional Ecology Center.

"The federal land management agencies have never articulated a legally adequate or compelling reason for opening the sacred Medicine Lake area to development," said attorney Deborah Sivas. "We believe that sound public land stewardship and the government's Indian Trust obligations argue strongly against approval of the project, and we believe the court will see it our way."

The lawsuit alleges violations of the National Environmental Policy Act, National Historic Preservation Act, the Geothermal Steam Act and National Forest Management Act, as well as the federal Trust Responsibility to Indian Tribes. The Medicine Lake Caldera was designated a Native American Traditional Cultural District by the National Register of Historic Places in 1999, but the Fourmile Hill leased area was never evaluated for inclusion in the District. Eureka attorney Michael Acosta also represents the plaintiffs. A coalition of environmental groups is also expected to file a suit.

The lawsuit also claims that dangerous levels of hydrogen sulfide, arsenic and mercury would be carried in geothermal steam plumes hundreds of feet in the air. This is of particular concern in a near-pristine area that feeds the largest fresh water spring system in California, eventually flowing into the Sacramento River. Fragmentation of the landscape would destroy hundreds of acres of old growth that are vital habitat for eagles, goshawks, pileated woodpeckers, martens and fishers, and uncounted species of sensitive plants.

The 49.9 megawatt Fourmile Hill geothermal project is the most immediate threat. However, Calpine has stated ambitions to develop as much as 1000 megawatts-twenty times the Fourmile Hill project!

BLM RECONSIDERS TELEPHONE FLAT PROJECT,
DENIED IN MAY 2000

The Telephone Flat Project originally proposed by CalEnergy was denied in May 2000, because this decision "…was the most effective measure to eliminate the impacts on the cultural and social environments in the Medicine Lake Caldera area." The project would interfere with the area's scenic and recreation values, plant, wildlife and ancient Native American sacred sites in an area determined to be "particularly sensitive." A 5-year Moratorium prohibiting future development accompanied the Fourmile Hill decision so that agencies could monitor impacts.

In October 2001 Calpine bought all of CalEnergy's leases and is now the sole owner of a total of 66 square miles of leases covering the Highlands. Calpine has successfully lobbied the, corporate-friendly White House, and in June 2001 the 5-year Moratorium was lifted.

In April 2002 the government reached an agreement to reopen the Telephone Flat decision as part of the settlement of an inflated $100 million takings lawsuit. The local BLM and Forest Service, which opposed the project, will no longer decide the fate of Telephone Flat-the settlement agreement gave that responsibility to the Secretary of Interior and the Chief of the Forest Service, both political appointees in Washington DC. The decision will be made by November 1st.

Our attorneys have submitted strong comments that changing the decision would have grave legal consequences and Native Americans face the possibility of another broken promise.

AGRESSIVE EXPLORATION

Meanwhile Calpine aggressively pursues exploration projects approved in the mid 90s. The first deep exploratory well is being drilled as we write, and plans for studies have been approved in the Mount Hoffman Roadless Area, one of the most untouched parts of the Highlands. Calpine's approved 2002 Plan of Operations involves drilling three new wells and a system of pipelines interconnecting Fourmile Hill and the Telephone Flat exploration wells drilled in the 90's within the Caldera. The Plan allows flow testing each of the three existing wells at Telephone Flat and two new deep wells. Testing and injection are expected to last three months.