SPRING 2002

WHILE SHE SLEEPS…

While signs of spring shyly emerge in the lower elevations around Mount Shasta, the Medicine Lake Highlands still lie under ten to twelve feet of snow in deep silence of winter sleep. The lake is a frozen white expanse. And the forests on the Caldera's mountains harbor the nests, dens and burrows of bald eagles, goshawks, martens, fishers, foxes, chipmunks, and myriad other creatures inhabiting the remote, geologically unique, and highly sacred ancestral lands of the Pit River and Modoc Tribes - the Medicine Lake Highlands. While nature's mysterious forces of replenishment work within the wintry landscape, corporate America's relentless grind exerts its unmerciful pressures.

Recent events clearly and painfully bring out the potential for Calpine's proposed Fourmile Hill Geothermal Project to begin the transformation of peaceful national forests into an industrial wasteland. The corporation has openly stated that it intends to develop geothermal "industrial parks" in the Highlands portions of the Shasta-Trinity, Klamath and Modoc National Forests. No longer are we talking about a single 49.9-megawatt plant. Calpine, now the sole owner of all the leases in the Highlands, admits to ambitions of developing as much as 1000 megawatts. It's clear that the current proposal is just a foot in the door.

IBLA REJECTS APPEALS

In February 2002 the Interior Board of Land Appeals (IBLA) denied the appeal of the BLM decision to approve Calpine's Fourmile Hill Geothermal Project filed by the Pit River Tribe, Mount Shasta Bioregional Ecology Center and the Native Coalition for Medicine Lake Highlands Defense. A separate appeal filed by a coalition of environmental groups was also denied.

This ends the Stay on construction that was ordered by IBLA when the appeals were filed in the summer of 2000. The Fourmile Hill Project was approved in May 2000 subject to a five-year Moratorium on any further geothermal development in the Highlands. However Secretary of the Interior Gale Norton subsequently lifted the Moratorium in June 2001, thus reactivating other geothermal leases in the Highlands.

Calpine now has approval to pursue state and federal development permits for Fourmile Hill. When the snows melt this summer, it plans to drill and flow test two deep wells and one temperature gradient hole as part of the exploration phase of the project. Construction of the development project may begin by September.

In response to this major decision by the IBLA, we are evaluating our options including the possibility of pursuing legal action together with our attorneys from Earthjustice Legal Defense Fund.

66 SQUARE MILES OF LEASES

Two geothermal development projects were originally proposed for the Medicine Lake Highlands by separate companies. The second power plant, the Telephone Flat project, proposed by CalEnergy in the Medicine Lake Caldera, was denied by a joint decision of the USFS/BLM in May 2000. The project's location within the Caldera was deemed "particularly sensitive" by the agencies due to noise and visual concerns, affecting the area's scenic and recreation values, plant, wildlife and ancient Native American sacred sites. The Medicine Lake Caldera was designated as a Traditional Cultural District in July 1999 in recognition of its spiritual and cultural values to Native Americans.

In October 2001 Calpine bought all the leases on 66 square miles in the Medicine Lake Highlands, which included inheriting CalEnergy's lawsuit against the US government for denying permission to develop the Telephone Flat Project. Calpine continues to pursue this legal action and the project, despite agency decisions.

But Calpine has admitted to vaster goals in what is possibly an effort to make the impacts seem worthwhile, though the presence of the resource at these levels not documented. In an application to the California Energy Commission, Calpine stated: "Successful resource confirmation at the Fourmile Hill area…will help stimulate additional development throughout the area which is believed to have geothermal reserves capable of producing 500 to 1000 megawatts."

$50 MILLION IN CEC SUBSIDIES

The California Energy Commission committed almost $50 million in funding from California ratepayers to the Fourmile Hill and Telephone Flat projects on the condition that the plants would be in operation by 2002. When that condition was not met, the CEC granted Calpine a four-year extension on the funding to December 2005. The Mount Shasta Bioregional Ecology Center, Native Coalition and alternative energy groups provided unheeded testimony at the CEC hearings.

The award was approved for both the Fourmile Hill and Telephone Flat projects, despite the fact that Calpine has a contract to sell the power through Bonneville Power Administration, which does not service California and would not help the state's energy supply; and despite the BLM/USFS decision to deny the Telephone Flat project.