NGP and Ormat amend contract on Crump Geyser Project in Oregon
Crater Lake National Park, Klamath County, Oregon (source: flickr/ jimmywayne, creative commons)
Alexander Richter
24 Aug 2012
Ormat Nevada and Nevada Geothermal Power agree on amendment regarding their joint Crump Geyser Project in Lake County, Oregon, including an extension of of expenditure commitments and an increase in cash payments to NGP.
In a release yesterday, Canadian developer Nevada Geothermal Power Inc. (NGP) announced “an Amendment to the Agreement between the Company and Ormat Nevada, Inc. (Ormat) regarding the Crump Geyser Project located in Lake County, Oregon.
Under the Amended Agreement, development expenditure commitments by Ormat of US$15M, of which approximately $7M has been expended, are extended to June 30, 2014. Ormat cash payments to NGP previously totaling $2.5M are increased to $3.0M ($300,000 previously paid) with committed payments of $500,000 due on execution of the Amendment (paid) and on October 29, 2012.The balance of $1.7M is due on or before June 30, 2014.
Work at the Crump Geyser Project is conducted through Crump Geothermal Company LLC (CGC), a holding company owned 50:50 by Ormat and NGP with funding provided by Ormat. Ormat, as manager, determined that a suitable Power Off-take Agreement is not currently available and that additional time is needed to complete the Crump geothermal resource evaluation.
Geothermal leaseholds of the Joint Venture total 35 square miles covering an extensive hot spring system including the Crump Geyser area in the Warner Valley Rift Basin. Aeromagnetic and seismic surveys over the lease area show extensive faulting within permeable volcanic stratigraphy underlying the wide valley floor with prominent faults oriented northeast and northwest. An historic well at Crump Geyser and two additional exploration wells by CGC encountered 265°F thermal water at shallow depths along the west side of the Warner Valley. An MT resistivity survey and further drilling is planned to explore for potential higher temperature resources (300-320°F).”
Source: Company release via Yahoo
