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Archie Bunker

01/14/10 8:45 PM

#72 RE: Valuehunters #71

Gascoyne 1 Update
Crownbutte Wind Power is developing a 19.5 MW wind energy project near Gascoyne, ND. The project is scheduled to be operational by the end of 2010.

The project currently includes interconnection agreement, land control, permitting, geotechnical report, foundation designs, collector system and substation designs. A RFP for construction is ready to be issued as soon as project financing is secured.

Gascoyne 1 is structured as a merchant wind energy project where the generated electricity will be sold into the Midwest ISO (MISO) LMP market via the Open Access Transmission Tariff (OATT) established in response to the Federal Energy Regulatory Commission (FERC) order numbers 888, 890, 890-A, 890-B and 890-C. Thus, we do not require a Power Purchase Agreement (PPA) for this project -- the power can be sold at market price as mandated by the OATT.

For the following reasons Crownbutte is confident that the Gascoyne 1 wind park will be profitable as a merchant facility. Our meteorological towers on the site of the park are collecting wind speed, direction, and temperature data at three different heights continuously and averaging over 10 minute intervals. These data are then transmitted via the cellular network to a central server where the information is combined with the turbine power curve and the real time (LMP) market price of electricity allowing us to continuously calculate the profit that would be made by a turbine at that location. We have written software which automates this procedure and have analyzed the site for 4 years.

Project Site and Wind Regime

The project site is located midway between the larger towns of Bowman and Hettinger, North Dakota, along the Adams and Bowman county line. The project consists of 1733 acres of contiguous land along a ridge line that has elevations of approximately 3000 ft above sea-level. The wind resource at the Gascoyne 1 site is one of the best in the United States with high mean wind speeds and low seasonal variations and low turbulence intensity. Site specific data have been recorded from two meteorological towers in the project area, with data beginning in November 2002 to the present. These data have been used to to calculate the capacity factors and have resulted in a projected 43.8% net capacity factor.

Electrical Interconnection and Transmission

The project will tap into an existing MDU substation at the south end of the project site feeding into a 115 kV transmission line. The interconnection is facilitated by an Interconnection and Operating Agreement (MISO project G311, Queue 37699-01) and this agreement includes access to MISO's LMP market which establishes the price for generated electricity sold into the grid.

Zoning and Permitting

Permitting has been received for County zoning, ND State Historical Society, ND Game and Fish Department, and U.S. Fish and Wildlife Services, as well as determinations of No Hazard to air navigation from the FAA.