Re: Preliminary Permit Application for the Rose Creek Pumped Storage Project

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1 September 12, 2013 Kimberly D. Bose, Secretary Federal Energy Regulatory Commission 888 First Street, N.E. Washington, D.C Re: Preliminary Permit Application for the Dear Ms. Bose, Please find attached the Preliminary Permit Application for the Rose Creek Pumped Storage Project. If you have any questions or need additional information, please contact me at (208) or at Sincerely, Matthew Shapiro Chief Executive Officer Gridflex Energy, LLC

2 Preliminary Permit Application for the Prepared by: Gridflex Energy, LLC 1210 W. Franklin St., Ste. 2 Boise, ID September 12, 2013

3

4 PRELIMINARY PERMIT APPLICATION FOR THE ROSE CREEK PUMPED STORAGE PROJECT TABLE OF CONTENTS Initial Statement 5 Section 4.32(a) Identification 6 Section 4.81Exhibits.. 8 Exhibit 1: Description of the Proposed Project 8 Exhibit 2a: Description of Proposed Studies. 14 Exhibit 2b: Statement of Costs and Financing.. 16 Exhibit 3: Project Maps.. 17 Exhibit 4: Section 4.81(b)(5) Federal Lands 19

5 4.81 (a) Initial Statement (1), an Idaho limited liability company ( Applicant ) applies to the Federal Energy Regulatory Commission ( FERC ) for a preliminary permit for the proposed ( Project ), as described in the attached exhibits. This application is made in order that the Applicant may secure and maintain priority of application for a license for this Project under Part I of the Federal Power Act while obtaining the data and performing the acts required to determine the feasibility of the Project and to support an application for a license. (2) The location of the proposed project is: State or Territory: County: Township or nearby town: Stream or other body of water: Nevada Mineral Hawthorne Rose Creek Reservoir (3) The exact name, business address, and telephone number of the Applicant is: 1210 W. Franklin St., Ste. 2 Boise, ID Phone: (208) The exact name and business address of each person authorized to act as an agent for the Applicant in this application is: Matthew Shapiro, CEO Gridflex Energy, LLC 1210 W. Franklin St., Ste. 2 Boise, ID Phone: (208) (4) is a domestic corporation and is not claiming preference under section 7(a) of the Federal Power Act. (5) The proposed term of the requested permit is 36 months. (6) There are no existing dams associated with the proposed Project.

6 4.32. IDENTIFICATION (1). For a preliminary permit or license, identify every person, citizen, association of citizens, domestic corporation, municipality, or state that has or intends to obtain and will maintain any proprietary right necessary to construct, operate, or maintain the project; 1210 W. Franklin St., Ste. 2 Boise, ID (2)(i). Every county in which any part of the project, and any Federal facilities that would be used by the project, would be located: The Project will be located in Mineral County and Lyon County, Nevada. Mineral County County Clerk/Recorder 105 South A Street, Ste. 3 Hawthorne, NV Federal facilities to be used by the Project include Rose Creek Reservoir, which is located on the Hawthorne Depot. (2)(ii). Every city, town, or similar local political subdivision: (A) In which any part of the project, and any Federal facilities that would be used by the project, would be located: The upper reservoir, conduits, powerhouse, part of the lower reservoir, ancillary facilities, and the majority of the transmission facility would be located within the boundaries of the Hawthorne Depot. (B) Cities, towns, or similar subdivision (5,000 people or more) within a 15-mile radius of the project dam: There are no cities, towns, or similar subdivisions of a population of 5,000 people or more within a 15-mile radius of the project dam. (iii) Every irrigation district, drainage district, or similar special purpose political subdivision: (A) In which any part of the project, and any Federal facilities that would be used by the project, would be located; or (B) That owns, operates, maintains, or uses any project facilities or any Federal facilities that would be used by the project;

7 Walker River Irrigation District 410 N. Main St. Yerington, N V (iv) Every other political subdivision in the general area of the project that there is reason to believe would likely be interested in, or affected by, the application: Hawthorne Depot TTN: JM H W -PA O, 1 South Maine Ave., Hawthorne, NV Nevada Division of Water Resources 901 S. Stewart St., Ste Carson City, N V Nevada Department of W ildlife 1100 Valley Road Reno, N V Nevada Department of Conservation and Natural Resources Division of Environmental Protection 901 S. Stewart Street, Ste Carson City N V Nevada State Historic Preservation Office 100 North Stewart St., Ste Carson City, N V (v) All Indian tribes that may be affected by the project. Walker River Paiute Tribal Council P.O. Box 220 Schurz N V Yerington Paiute Tribe 171 Campbell Lane Yerington N V 89447

8 4.81 (b) Exhibits EXHIBIT 1: DESCRIPTION OF THE PROPOSED PROJECT The Project consists of an expanded existing reservoir (Rose Creek Reservoir) as upper reservoir and a new lower reservoir, joined by approximately 12,300 feet of conduit. An underground powerhouse will be constructed between the two reservoirs. Maximum hydraulic head will be 2,380 feet. Equipment will tentatively consist of two 125 M W pump and turbine sets, totaling 250 M W of generating capacity. Annual energy production is projected to be approximately 547,500 M Wh. The Project will propose to interconnect with either (a) the Dixie Valley-Oxbow transmission line, via a new 20 mile, 230 kv transmission line, or (b) Sierra Pacific Power s Thorne substation, via a new 15 mile, 230 kv transmission line. Dams Height (ft) Length at Crest (ft) Type Expansion of Existing Rose Creek Dam , ,720 RCC or CFRD Lower reservoir ring embankment , ,100 CFRD or Earth Reservoirs MSL (ft) Volume (A F) Surface Area (ac) Upper Reservoir (Expanded Rose Creek Reservoir) 6,390 2, Lower Reservoir 4,075 1, Conduits Length (ft) Diameter (ft) Lining Low Pressure Headrace 2, Concrete-lined High Pressure Headrace 9, Concrete- and steellined Tailrace Concrete-lined

9 Powerhouse The powerhouse will tentatively be located an elevation of approximately 3,930 feet and a depth of 150 feet below ground level. Tentative dimensions are 200 feet long by 60 feet wide by 120 feet high. It would be constructed from ground level down. Transmission Lines The Project will propose to interconnect to either (a) the 230 kv Dixie Valley-Oxbow transmission line via a new, 20 mile 230 kv line or (b) Sierra Pacific Power s Thorne substation via a new, 15 mile 230 kv line. The Project s 230 kv transmission line would require a foot right of way. Water Source The Project is intended to provide desalination service to Walker Lake as well as power to regional utilities. To fulfill that function, fill water for the pumped storage operation would be continuously cycled through the plant on behalf of existing water rights holders or others with jurisdiction over Walker Lake waters. Operation The Project will provide peaking capacity and fast-responding ancillary services support to markets in California and Nevada. The Project will also be operated to provide support to new renewable resources being interconnected to the regional transmission grid currently and in the future, including peak-shifting to geothermal power generation. The Project as proposed would also provide desalination service to Walker Lake through hydraulic reverse osmosis. Federal Lands The project almost would be entirely located on lands within the Hawthorne Depot. Transmission alternative B involves crossing approximately two miles of BLM-managed land. The sections affected are displayed in Exhibit 4. The legal descriptions of the lands affected by the Project are as follows: T8N R29E Section 1 All Section 2 NE1/4

10 Section 3 L8 L9 Section 4 N1/2 Section 12 NE1/4 T8N R30E Section 2 N1/2 SW1/4 Section 7 SW1/4 Section 10 E1/2 NE1/4 E1/2S E1/4 Section 11 W1/2 N W1/4 W1/2 SW1/4 Section 15 N1/2 Section 16 E1/2 NE1/4 SW1/4 NE1/4 N1/2 SE1/4 NE1/4 SW1/4 N W1/4 SW1/4 SW1/4 SW1/4 Section 17 SE1/4 NE1/4 SW1/4

11 S1/2 N W1/4 N W1/4 N W1/4 Section 18 N1/2 NE1/4 SE1/4 NE1/4 T8N R31E Section 3 SW1/4 SW1/4 Section 4 S1/2 Section 5 N1/2 Section 6 L1 Section 10 N1/2 Section 11 S1/2 N W1/4 N1/2 SW 1/4 SE1/4 Section 12 S1/2 SW1/4 Section 13 NE1/4 T8N R32E Section 18

12 S1/2 N W1/4 N1/2 SW1/4 N1/2 SE1/4 T9N R29E Section 27 All Section 33 S1/2 NE1/4 Section 34 N1/2 SW1/4 Section 35 NE1/4 N W1/4 SW1/4 NE1/4 N W1/4 SE1/4 L1 L2 L3 L4 T9N R30E Section 36 N1/2 NE1/4 SE1/4 T9N R31E Section 20 SW1/4 SE1/4 Section 29 N W1/4 NE1/4 NE1/4 N W1/4 SE1/4 N W1/4 SW1/4 N W1/4

13 Section 30 SE1/4 NE1/4 N W1/4 SE1/4 NE1/4 SE1/4 SW1/4 SE1/4 SE1/4 SW1/4 L4 Section 31 S1/2 L1 BLM Office (pertains to three sections in T9N R31E): Department of the Interior Bureau of Land Management Carson City District 5665 Morgan Mill Road Carson City, N V 89701

14 4.81 (c) EXHIBIT 2: DESCRIPTION OF STUDIES (1) General (i) Study Plan The Applicant plans to engage in the following studies in order to design the technical aspects of the project and to confirm its economic viability: Project land surveys Environmental impact studies Archaeological studies Groundwater studies Energy production studies Water quality studies Water rights studies Engineering studies, including soil studies, test pits and core holes Design studies related to the integration of reverse osmosis desalination with the pumped storage plant and operation Study on the energy market for the project Transmission interconnection studies Determination of equipment configuration and sizing Cost estimates Additional studies may be required as the need arises. (ii) New Roads No new roads will be needed for the purpose of conducting the studies described in this exhibit. (2) Work Plan for New Dam Construction (i) Description of field studies, tests, and other land disturbing activities A subsurface investigation will be required to determine the rock structure and stability for the proposed dam sites. Samples shall be checked for rock structure as well as determine the suitability for project features for the dams and power tunnels. The Applicant proposes to use existing roads located within the project boundary to minimize or eliminate the potential for any land disturbing activities.

15 (ii) Studies Schedule Work Item Month Beginning Schedule Month Ending Engineering Conceptual refinement and evaluation of alternatives 0 6 Initial scoping and consultation 0 8 Engineering studies 0 24 Environmental studies 0 24 Archaeological studies 6 12 Geological investigations 8 16 Selection of equipment Environmental Agency consultation 0 6 Environmental studies 6 20 Prepare draft application Other Land & RO W 0 24 Water rights studies 0 36 Transmission interconnection planning 6 24 Cost estimating, economic feasibility, and financial 8 24 planning investigations Power sales marketing Additional stage consultation and documentation This schedule may be adjusted and supplemented depending on need and contingencies that may develop as studies proceed. (3) Request for Waiver It is anticipated that preliminary field studies, tests, and other activities to be conducted under the permit would not adversely affect cultural resources or endangered species and would cause only minor alterations or disturbances of lands and waters, and that any land altered or disturbed would be adequately restored. This is particularly true since only an upper reservoir is required to be constructed for this project. The Applicant therefore requests waiver of the full requirements of 18 CFR 4.81 (c)(2).

16 (4) Statement of Costs and Financing i. Estimated cost of studies The estimated cost of carrying out and preparing the studies, investigations, tests, surveys, maps, plans and specifications described in this application is estimated to be between $1.0 and $1.5 million. ii. Expected sources of financing The expected sources of financing to conduct the studies described in this application are private investors.

17 4.81 (d) : PROJECT MAPS Notes: 1. No areas within the study boundary are designated as wilderness area or wilderness study area, or recommended for designation as wilderness areas. 2. No areas within the study boundary are included in or have been designated for study for inclusion in the National Wild and Scenic Rivers System.

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19 Exhibit 4: Section 4.81(b)(5) Federal Lands Form FERC-587 OMB No (Expires 07/30/2012) LAND DESCRIPTION Public Land States (Rectangular Survey System Lands) 1. STATE Nevada 2. FERC PROJECT NO. 3. TOWNSHIP T8N RANGE R29E MERIDIAN Mt. Diablo 4. Check one: Check one: License X Pending X Preliminary Permit Issued If preliminary permit is issued, give expiration date: Section EXHIBIT SHEET NUMBERS OR LETTERS contact's name Matthew Shapiro telephone no. ( ) Date submitted September 12, 2013

20 Form FERC-587 OMB No (Expires 07/30/2012) LAND DESCRIPTION Public Land States (Rectangular Survey System Lands) 1. STATE Nevada 2. FERC PROJECT NO. 3. TOWNSHIP T8N RANGE R30E MERIDIAN Mt. Diablo 4. Check one: Check one: License X Pending X Preliminary Permit Issued If preliminary permit is issued, give expiration date: 5. EXHIBIT SHEET NUMBERS OR LETTERS Section contact's name Matthew Shapiro telephone no. ( ) Date submitted September 12, 2013

21 Form FERC-587 OMB No (Expires 07/30/2012) LAND DESCRIPTION Public Land States (Rectangular Survey System Lands) 1. STATE Nevada 2. FERC PROJECT NO. 3. TOWNSHIP T8N RANGE R31E MERIDIAN Mt. Diablo 4. Check one: Check one: License X Pending X Preliminary Permit Issued If preliminary permit is issued, give expiration date: Section 6 5. EXHIBIT SHEET NUMBERS OR LETTERS BLM 8 BLM contact's name Matthew Shapiro telephone no. ( ) Date submitted September 12, 2013

22 Form FERC-587 OMB No (Expires 07/30/2012) LAND DESCRIPTION Public Land States (Rectangular Survey System Lands) 1. STATE Nevada 2. FERC PROJECT NO. 3. TOWNSHIP T8N RANGE R32E MERIDIAN Mt. Diablo 4. Check one: Check one: License X Pending X Preliminary Permit Issued If preliminary permit is issued, give expiration date: 5. EXHIBIT SHEET NUMBERS OR LETTERS Section contact's name Matthew Shapiro telephone no. ( ) Date submitted September 12, 2013

23 Form FERC-587 OMB No (Expires 07/30/2012) LAND DESCRIPTION Public Land States (Rectangular Survey System Lands) 1. STATE Nevada 2. FERC PROJECT NO. 3. TOWNSHIP T9N RANGE R29E MERIDIAN Mt. Diablo 4. Check one: Check one: License X Pending X Preliminary Permit Issued If preliminary permit is issued, give expiration date: 5. EXHIBIT SHEET NUMBERS OR LETTERS Section contact's name Matthew Shapiro telephone no. ( ) Date submitted September 12, 2013

24 Form FERC-587 OMB No (Expires 07/30/2012) LAND DESCRIPTION Public Land States (Rectangular Survey System Lands) 1. STATE Nevada 2. FERC PROJECT NO. 3. TOWNSHIP T9N RANGE R30E MERIDIAN Mt. Diablo 4. Check one: Check one: License X Pending X Preliminary Permit Issued If preliminary permit is issued, give expiration date: 5. EXHIBIT SHEET NUMBERS OR LETTERS Section Exhibit 3 6. contact's name Matthew Shapiro telephone no. ( ) Date submitted September 12, 2013

25 Form FERC-587 OMB No (Expires 07/30/2012) LAND DESCRIPTION Public Land States (Rectangular Survey System Lands) 1. STATE Nevada 2. FERC PROJECT NO. 3. TOWNSHIP T9N RANGE R31E MERIDIAN Mt. Diablo 4. Check one: Check one: License X Pending X Preliminary Permit Issued If preliminary permit is issued, give expiration date: 5. EXHIBIT SHEET NUMBERS OR LETTERS Section BLM Exhibit BLM Exhibit 3 29 BLM Exhibit contact's name Matthew Shapiro telephone no. ( ) Date submitted September 12, 2013

26 Document Content(s) Prelim Permit App - Rose Creek Pumped Storage.PDF

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