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U.S. DEPARTMENT OF THE INTERIOR

BUREAU OF LAND MANAGEMENT

Oregon / Washington

Newberry Volcano Enhanced Geothermal System (EGS) Demonstration Project

This Environmental Assessment has been prepared to disclose and analyze environmental effects of developing and testing a geothermal reservoir created by using enhanced geothermal system (EGS) technologies, as proposed by Davenport Newberry Holdings LLC (Davenport) and AltaRock Energy, Inc. (AltaRock). A Notice of Intent (NOI) and "Plan of Exploration, Operations Plan, and Drilling Program for the Newberry Volcano EGS Demonstration Project" (Project, EGS Project) were submitted to the Prineville Office of the Bureau of Land Management (BLM) in May, 2010.

The proposed Project is located in central Oregon on Deschutes National Forest lands along the western flank of Newberry Volcano. Except for some seismic monitoring stations (Figure 2 and described in Section 2.3), the Project is located outside the Newberry National Volcanic Monument (Monument or NNVM), on federal geothermal leases administered by the BLM that were issued between 1982 and 2003. Davenport Newberry LLC is currently the holder of all geothermal leases identified in the NOI.