Fall / Winter 2006 / 2007

Mount Shasta Threatened!
Update on Vulcan Geothermal Leasing

by Michelle Berditschevsky
 

Can geothermal threats such as those menacing the Medicine Lake Highlands threaten Mount Shasta? Our readers will recall that the Forest Service has been given orders from Washington D.C. to review all eleven geothermal lease applications around Mount Shasta filed by Vulcan Power Company in the 1990s. These applications cover 18,000 acres, or approximately 28 square miles, and are located in sensitive areas between 6,000 and 7,000 feet in elevation just below the Wilderness Area.

Forest Service poised to begin environmental scoping

The exact date when the Forest Service will initiate scoping on geothermal leasing on Mount Shasta is currently unknown, but according to Mount Shasta District Ranger Mike Hupp, “scoping could begin sometime this winter-spring season. We have committed to a contract with an internal enterprise team to conduct scoping and provide an Environmental Impact Statement.”

Unlike other energy projects, such as those in the Medicine Lake Highlands where Calpine has had to bear the costs of environmental review, on Mount Shasta the costs will be carried by the public’s own tax dollars.

Vulcan’s intent uncertain

Though Vulcan has applications on file for eleven leases, the company claims to be interested in beginning with one potential lease area located near Military Pass on the northeast side of Mount Shasta. However, they have not withdrawn the other ten lease applications and unless they do, the Forest Service plans to study all eleven potential lease areas. “We are waiting for Vulcan Power to clarify their intent before proceeding with the EIS,” said Hupp. At this stage, the Bureau of Land Management (BLM), which holds subsurface jurisdiction on public lands, has officially designated an area of Reasonably Foreseeable Development based on the eleven lease applications.

Two-phased process

The environmental review process will be in two phases. First the Forest Service conducts environmental review on exploration, resulting in an EIS to determine whether or not to grant consent to the BLM to award the leases to be explored. This will start with public scoping, slated to begin in the next few months. At this stage, we wish to point out that it is extremely important to identify any environmental or cultural resources that could preclude development, such as endangered species, cultural values, or water issues.

“If the Forest Service grants consent to the BLM,” said Hupp, “Vulcan Power can begin exploration.” If and when exploration proves an actual resource, a development proposal would be the subject of a second EIS.

Vulcan obtains PG&E power purchase contract

We recently learned that Vulcan Power Company obtained approval on October 19th from the California Public Utilities Commission (CPUC) for a power purchase agreement with PG&E. This contract calls for obtaining wattage from the Military Pass location on Mount Shasta, the site of one of the lease applications, as well as from Newberry Crater in Oregon.
PG&E made the application to procure Vulcan power to the CPUC toward fulfillment of the company’s renewable portfolio standard, by which California requires that utilities obtain 20 percent of their power supply from renewable resources by 2010.

We have concerns that the approved contract will put pressure on the Forest Service to approve the leases on Mount Shasta. The contract could be legally challenge it if we had the legal and financial resources. Our experience with the Medicine Lake Highlands has shown that a power contract can affect the environmental review process, in that agencies such as the California Energy Commission and U.S. Department of Energy are more likely to allocate funding for exploration and power plant construction, giving the potential developer higher stakes in the process.

This brings the possibility of a “takings” claim by the energy company should its projects be denied.

Highest vigilance needed

Given the congressional Energy Bill of 2005 mandating development of domestic power, the funds appropriated to the Forest Service to move forward with consideration of existing lease applications, and an administration favorable to corporate incursions on public lands, this is a threat to Mount Shasta that we must take very seriously. Please renew your membership and express your support….