New energy approach

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Crystal Energy is very encouraged by the level of public participation as we work together to create a safe, clean and environmentally sound solution to California’s critical energy shortage. Yet it seems some confusion has arisen concerning two distinct proposals to import natural gas into California using offshore receiving terminals, and Crystal Energy would like to clarify some facts.

BHP Billiton has proposed a floating facility 14 miles off the Malibu coast called Cabrillo Port. That project is nearing the end of its environmental review process, with a hearing on the Environmental Impact Report (EIR) scheduled for December 1 in Malibu. Crystal Energy has proposed a different solution, called Clearwater Port, located 12.6 miles off the coast of Oxnard on Platform Grace, to be operated by a world-class offshore operator, Woodside Energy. Clearwater Port will not be visible from Malibu, and has not begun the public environmental review process.

Clearwater Port would be a stable, safe, and environmentally superior solution to California’s energy crisis. Ships will transport cooled natural gas from Australia and Alaska to the platform, where it will be converted into vapor form and delivered to California residents, businesses, and power plants, putting the state at the beginning, rather than the end, of the natural gas supply line.

Using a proven, safe existing platform means Crystal Energy can avoid an onshore facility or developing a new offshore industrial site. In addition, the undersea natural gas pipeline will use existing pipeline corridors, eliminating the need for a new pipeline right-of-way on the sea floor.

Structurally, Crystal Energy is working with the U.S. Department of the Interior’s Minerals Management Service to have the platform recertified “as new,” meaning it will meet or exceed all technical, safety, environmental, and seismic standards prior to the commencement of gas operations.

In addition, Crystal Energy plans to exercise its option to purchase the platform from Venoco. Crystal Energy’s plans call for the platform to be dedicated as a regasification facility only, which means there will be no concurrent oil and gas production, no “fish farm,” or any other use.

Clearwater Port will also use the best available control technology in its design -leading the way for proposed offshore terminals in the world-by reducing Clearwater Port’s air emissions by about 95 percent. And, rather than discharge the pure, desalinated water that is formed as condensation during operations, Crystal Energy is delivering more than 40 million gallons of fresh water annually to the City of Oxnard for municipal use at no cost. No seawater will be used as part of our operations.

Clearwater Port will only go forward after an extensive public comment process and if an exhaustive analysis of the facts by independent environmental and safety experts hired by local, state, and federal agencies confirms the project is safe, secure, and environmentally sound.

For more information about California’s energy situation and our proposed Clearwater Port project, I encourage you to visit our Web site, www.clearwaterport.com.

Lisa Palmer

Director of Communications

Crystal Energy