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1 Friday, March 9, 2018 Mr. Wilcox California Natural Resources Agency 1416 Ninth Street, Suite 1311 Sacramento, CA 95814 Re: Response to CNRA RFI. Mr. Wilcox, The Sea to Sea (StS) development team (Gary Jennings - Dan Johnson Partnership, JJP, and 64 suppliers, construction experts, local homeowners, concerned citizens and government agencies in two countries) are pleased to present our response to the CNRA Request for Information (RFI). Our comments to each question are brief and assume the reader has an in-depth understanding of the Salton Sea. If CNRA or other State agencies require further information, the Sea to Sea development team will require an enforceable non-disclosure – non-circumvention agreement. The leadership of Imperial County (IID & Imperial County Supervisors) recommends Sea to Sea team develop (focus) a “dust reduction or dust mitigation project” by importing 2.0 MAF of seawater for five years and raise the Salton Sea approximately 20 feet (-220 elevation). This volume of imported seawater will cover 50,000 to 100,000 acres of exposed Salton Sea lakebed that will go dry over time. In general terms, the project is organized as a California canal company (CPUC and CA water code) with the intent of selling and delivering (importing) 2.0 MAF of seawater per year from Mexico to the Salton Sea. The Sea to Sea (StS) development team updated offer to CRNA is as follows: a. State of California to fund operating cost to import 2.0 MAF imported seawater per year. b. Estimated StS operating cost: $ 38.3 million per year before debt service. c. Estimated StS operating cost: $ 85.9 million per year with debt service. d. Estimated StS 135-mile construction cost: $ 560.0 million over three years. e. Contract and operating term: 50 years with options for extension. f. Develop public/private partnership agreement between the parties. g. Develop cost plus operating agreement for each company (water, salt, power, fish farms). h. Sea to Sea will allocate profits to repurchase certain project assets (water, salt, other). i. Bi-national project with a staff of 90 people (two office & operation offices). j. Sea to Sea canal company will operate 125-mile seawater canal in California and Mexico. k. Sea to Sea canal company will arrange permitting and water purchase contracts from Mexico. l. Sea to Sea canal company will arrange permitting/construction contracts in California and Mexico. m. Sea to Sea will retain ownership of all operating companies (water, salt, canal operation, other). n. Jointly evaluate four to six funding strategies with State agencies for implementation. o. Jointly evaluate salt reduction projects to lower the Salton Sea from 60 tds to 45 tds over ten years. p. Jointly evaluate economic development projects to offset StS operating and development cost. q. Jointly evaluate economic development projects to offset seawater distillation development costs.

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Friday,March9,2018Mr.WilcoxCaliforniaNaturalResourcesAgency1416NinthStreet,Suite1311Sacramento,CA95814Re:ResponsetoCNRARFI.Mr.Wilcox,The Sea to Sea (StS) development team (Gary Jennings - Dan Johnson Partnership, JJP, and 64suppliers, construction experts, local homeowners, concerned citizens and government agencies intwocountries)arepleasedtopresentourresponsetotheCNRARequestforInformation(RFI).Ourcommentstoeachquestionarebriefandassumethereaderhasanin-depthunderstandingoftheSaltonSea.IfCNRAorotherStateagenciesrequirefurtherinformation,theSeatoSeadevelopmentteamwillrequireanenforceablenon-disclosure–non-circumventionagreement.TheleadershipofImperialCounty(IID&ImperialCountySupervisors)recommendsSeatoSeateamdevelop (focus) a “dust reductionordustmitigationproject”by importing2.0MAFof seawater forfiveyearsand raise theSaltonSeaapproximately20 feet (-220elevation).This volumeof importedseawaterwillcover50,000to100,000acresofexposedSaltonSealakebedthatwillgodryovertime.In general terms, theproject is organizedas aCalifornia canal company (CPUCandCAwater code)withtheintentofsellinganddelivering(importing)2.0MAFofseawaterperyearfromMexicototheSaltonSea.TheSeatoSea(StS)developmentteamupdatedoffertoCRNAisasfollows:

a. StateofCaliforniatofundoperatingcosttoimport2.0MAFimportedseawaterperyear.b. EstimatedStSoperatingcost:$38.3millionperyearbeforedebtservice.c. EstimatedStSoperatingcost:$85.9millionperyearwithdebtservice.d. EstimatedStS135-mileconstructioncost:$560.0millionoverthreeyears.e. Contractandoperatingterm:50yearswithoptionsforextension.f. Developpublic/privatepartnershipagreementbetweentheparties.g. Developcostplusoperatingagreementforeachcompany(water,salt,power,fishfarms).h. SeatoSeawillallocateprofitstorepurchasecertainprojectassets(water,salt,other).i. Bi-nationalprojectwithastaffof90people(twooffice&operationoffices).j. SeatoSeacanalcompanywilloperate125-mileseawatercanalinCaliforniaandMexico.k. SeatoSeacanalcompanywillarrangepermittingandwaterpurchasecontractsfromMexico.l. SeatoSeacanalcompanywillarrangepermitting/constructioncontractsinCaliforniaandMexico.m. SeatoSeawillretainownershipofalloperatingcompanies(water,salt,canaloperation,other).n. JointlyevaluatefourtosixfundingstrategieswithStateagenciesforimplementation.o. JointlyevaluatesaltreductionprojectstolowertheSaltonSeafrom60tdsto45tdsovertenyears.p. JointlyevaluateeconomicdevelopmentprojectstooffsetStSoperatinganddevelopmentcost.q. Jointlyevaluateeconomicdevelopmentprojectstooffsetseawaterdistillationdevelopmentcosts.

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PublicNotice.This information, past Sea to Sea canal presentations and information posted on the Sea to SeaFacebook page (Importing Seawater from Baja to the Salton Sea) are the property of Jennings &JohnsonPartnership(JJP).This information is copyrighted material in Mexico and the United States. Written permission isrequiredtocopy,reference,reprintoruseSeatoSeainformation,maps,canalpath,partnerships,orworkproduct.TheJJPpartnershipistheprimaryinvestor-masterdeveloperandowneroftheproposedSeatoSeaCanal – Seawater Importation Project (StS) and related operating companies presented in thisdocument.LegalNotice.BeadvisedanypartyintentionallyinterferingwiththeSeatoSeacontracts,programs,andMOU’sinMexico,ortheUnitedStatesaresubjecttothelawsoftheUnitedStatesandMexicoasitrelatestotheintentionalactofTortuousInterference.Tortuous Interference, also known as intentionalinterferencewith contractual relations, in thecommon lawoftorts,occurswhenoneperson intentionallydamagessomeoneelse's contractualorbusinessrelationshipswithathirdpartycausingeconomicharm.TortuousInterferenceisaseriouscrimeintheUnitedStatesandMexico:Formoreinformationpleasecontact.Mr.GaryJenningsManagingPartnerSeatoSeaCanalProject.(619)[email protected],Esq.ManagingPartnerSeatoSeaCanalProject.(818)[email protected]–www.berglundandjohnson.com.Facebook:Pleasesee“ImportingseawaterfromBajatotheSaltonSea”forcurrentdetails.

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135-mileSeatoSeacanalpath2.0MAFperyear.

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Sizeofpipeorculvertstocrossinternationalborder,Hwy2,Hwy98,Hwy8,Hwy86,and/orcountyroads.

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Pictureone: 300,000AFCoachellaCanal,ImperialCounty(Closed).Picturetwo: 2.0MAFCoyoteCanal,LagunaSaladaBaja(40milefloodcanal,Mexicali).Picturethree: Hydropowerscrew(500KWunit).Picturefour: Hydropoweroperatingunit,500KW(45units-20baseloadmegawattsperhour).Picturefive: SolarGradientPondPowerProduction(500megawattpowerproductionpotential).Picturesix: Exampleofdistillingseawatersystem.Pictureseven: Commercialseasaltoperations.

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ResponsetoCNRA-RFIQuestions.1.IdentificationofProjectTeam.

The principal owners - developers are Gary K. Jennings - Dan Johnson, Jennings& JohnsonPartnership (JJP).Mr. Jennings andMr. Johnsonwillmanage the Sea to Sea canal companyand affiliated companies. Sea to Sea canal company is organized as a California canaloperatingcompany(CAwatercode).

The extended team is 64 suppliers, concerned citizens, government agencies, 90 engineers,managersandoperationalstaffinImperialCountyand Mexicali,BajaCalifornia,Mexico.The Sea to Seadevelopment team is requesting the Stateof California fund the Sea to Seaoperatingcost(purchase2.0MAFofseawater)andincreasethewaterleveloftheSaltonSea(20feet)topreventtoxicblowingdustandpromoteeconomicdevelopmentoverafifty-yeartimeline.Theofferisbasedonacost-plus-public/privatepartnershipformat.

a. 57 full-timestaff in ImperialCounty, includingcorporatestaff,boardofdirectors,canal

operationsandnon-profitoperationsinImperialCounty.b. 33full-timestaffinMexicali,BajaCalifornia,includingcorporatestaff,boardofdirectors,

canaloperationsandnon-profitoperationsintheLagunaSaladaarea.c.64suppliers,agencies,andpartnercompaniesassociatedwiththeStScanalproject.

b.ThefollowingcompanieshavecontractedwiththeSaltonSeadevelopmentteam(JJP)orhave

shown interest indevelopingprograms.Basedon the200 items in theconstructionbudget,ImperialCounty,RiversideCountyandMexicalihavethesupplierbase,laborinventory,heavyequipment,dieselfuel,andconstructionexpertstodeveloptheSeatoSeacanalproject.

CaliforniasuppliersorpotentialSeatoSeadevelopmentpartners(17).

a. GraniteConstructionInc(RiversideandImperialCounty).b. Caterpillar(ImperialCounty).c. KinderMorganInc(DieselFuelSupplier).d. OrmatEnergy(ImperialCounty).e. CalEnergy(ImperialCounty).f. NREL-SNLLabs.g. SkyFuelsInc(Colorado).h. TorayFilter(LosAngeles).i. StorEnergyInc(UK).j. Privatesoiltestingandsurveycompany,SouthernCalifornia.k. Privateengineeringcompany,ImperialCounty.l. Privateenvironmentalservicescompany,SanDiego,andLosAngeles.m. Privateinvestmentbanker,SanDiegoandLosAngeles.n. Privatebanking-taxincentiveexpert,SanDiego.o. Berglund&JohnsonLawOffice(LosAngeles).p. 5waterdistricts/IID(publicprivatepartnership).q. Internationalsaltbuyer.

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c.PrivateCompanies,Mexicali,BajaCalifornia,Mexico(12).a. CaterpillarequipmentofBajaMexico(heavyequipmentsupplier).b. Pemex(dieselfuelsupplier),Mexicali.c. Privatesoilandtestingcompany,Mexicali.d. Privateengineeringcompany,Mexicali.e. Privateenvironmentalservicecompany,Mexicali.f. Privatelandsurveycompany,Mexicali.g. Privatelawfirm(landissues),Mexicali.h. PrivateHRservicescompany,Mexicali.i. Privatebusinessbankingagent,Mexicali.j. Privatebusinessservicescompany,Mexicali.k. Companylobbyist(StateandFederalMexicanGovernment).

d.PrivateLandOwners,LagunaSaladaBajaMx.

Sea to Sea development team presented ground lease offers or Memorandums ofUnderstanding (MOUs) to lease or purchase land from six landowners in the Laguna Saladabasin(proposedpathof90mileseawaterimportcanal).Thelandareaisestimatedat30,000acresatsealevel,includingtheentireoperationalCoyoteCanalsystem,entireoperationalseawaterintakesystemandtheproposedcanalpathstobringwaterovertheinternationalborder.Currently, there is no organized opposition to the proposed project from local land owners,with the understanding Sea to Sea development team paymarket rate for freshwater, seawater,gravel,land,and/orgroundleases.

e.MexicanGovernmentAgencies.SeatoSeadevelopmentteampresentedMOUsand/orcontractstopurchaseseawater, leaselandordevelopnon-profitprogramsinBajaCalifornia,Mexico.Currently, there is no organized opposition to the Sea to Sea canal project from anyenvironmental group or Federal - State government agency with the understanding allregulations are followed and severalmillion dollars be invested in the regional programs toenhancethewildlifeandwatersupply.

Mexicanagencies(7).a.CONAGUAagency.b.SEMARNATagency.c.CESPMagency.d.SEDATUagency.e.CityofMexicali(severalagencies).f.StateofBajaCalifornia(twoagencies).g.SecretariatofEconomicDevelopment,BajaCalifornia,Mexico.

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f.UnitedStatesGovernmentAgencies.

Sea to Sea development team contacted, presented MOUs or letters requesting land oreasements to 16 Federal and State agencies, to develop the proposed Sea to Sea seawatercanalproject.Basedon the conversationsorobservations, there arenoobjections to theproposed Sea toSeaseawaterimport/dustmitigationproject,withtheunderstandingthatacompleteEIRbeconductedinconjunctionwithadetailedcanalpathinspectionforartifacts.Theproposedtreeprogram,non-profitprogramsandeconomicdevelopmentprojectswerewellreceived.Theraw landonthewestsideof ImperialCounty isownedandmanagedbyBLMandzonedunlimited off-road and camping area. This land has three complete EIR's and substantialinformation is available from windmill development, geothermal development, and existing(extensive)off-roaddevelopmentviaBLM.Thecanalpath is locatedat the sea level contourandnearexistingpavedordirtroads,buildings,prison,Militarybaseorpowerlines.Thislandis not virgin desert and none of the land is restricted due to critical wildlife. The currentrestrictionisbasedonthemilitaryflyoverspaceoreventsthatcreateexcessivedust.

Federalagencies(8).

a. BureauofLandManagement(crossingthrough45sectionsofland).b. BureauofReclamation.c. EPA.d. InternationalBoundary&WaterCommission.e. U.S.BorderPatrol.f. U.S.ArmyCorpofEngineers.g. U.S.StateDepartment(Presidentialpermit).h. U.S.Military.

Californiaagencies-ImperialCounty,RiversideCounty(8).

a. StateLands.b. EPA.c. DepartmentofWaterResources.d. DepartmentofNaturalResources.e. DepartmentofCorrections.f. ImperialIrrigationDistrict.g. ImperialCounty.h. RiversideCounty.

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2.Narrativedescriptionofprojectconceptandhow/whenitwillbenefitthelake.

(BriefDescription)TheSea toSeadevelopment team is requesting theStateofCalifornia fundtheSeatoSeaoperatingcost(purchase2.0MAFofseawater)andincreasethewaterleveloftheSaltonSea (20 feet) toprevent toxicblowingdustandpromoteeconomicdevelopmentoverafifty year timeline. The offer is based on a cost-plus - public/private partnership format. Thisformatwilldeliverthelowestcostpossibletomeetstatedobjectives.The firstMemorandumofUnderstanding (MOU) in support of Sea to Sea canal company (JJP)wasissuedtoGaryJenningsandDanJohnsonin2011(endorsedbySaltonSeaAuthority,ImperialCounty,IID,RiversideCounty,CVWD).Overaneight-yearperiod,theideaofimportingseawaterfrom the Seaof Cortez, Baja California,Mexicohas gained in popularity andhaswide supportbasedonthenon-stoplobbyingfromSeatoSeadevelopmentteam,thousandsoflocalpropertyowners,petitionsignatures,andTheEco-MediaCompass,basedinSaltonCity.Overthelasttwenty-fourmonths,SeatoSeacanalcompany(JJP)hasacceptedtheendorsementfrom CNRA long range planning committee, has received 3,000 local signatures from threeregional pro Sea to Sea canal company (JJP) petitions, has appeared in threemovies, has 675membersonsocialmediapagesandnumerousarticlesinprint.(Projectconcept)ThegeneralconceptoftheSeatoSeacanalcompany(ImportingseawaterfromMexicoandincreasingthelakelevel20feet)hasthefullsupportoftheIIDboardandSupervisorsofImperialCountyasadustmitigationordustsuppressionstrategy.(Project Revenue) The Sea to Sea canal company is organized into four primary operatingobjectives.Potentialrevenuesfromsecondaryoperatingcompaniesarepreliminary.IfcustomerswillpurchaseproductsfromtheStSproject.Thesaleofpower,distilledwater,seasaltorotherproductscouldpaytheStSoperatingcosts,StSconstructiondebtservice,seawaterdistillation programs and power development. To confirm income potential, substantialinvestigationwillberequired.Estimatedannualgrossproductsales,ImperialCounty-LagunaSalada. CAGeneration(Solarponds) 500.0megawatts $328.0millionperyear. CASeasalt 3.0milliontons $225.0millionperyear. CADistilledwater 200,000acre-feet $100.0millionperyear. CAHydroPower 20megawatts $49.2millionperyear. CAFishproducts FishfarminStScanal $500,000peryear. CAFarming Saltwatercrops $100,000peryear. CARecreation Camping $100,000peryear. CAFamilyprojects Honeyorother $100,000peryear. MXDistilledwater 50,000acre-feet $25.0millionperyear.MXGeneration(Solarponds) 25.0megawatts $16.4millionperyear.MXGeneration(Hydro) 25.0megawatts $16.4millionperyear. MXFishproducts Fishfarm $2.0millionperyear. MXSeasalt 10,000tons $750,000peryear. MXFarming Greenhouse $100,000peryear. MXRecreation Camping $100,000peryear.MXFamilyprojects Honeyorother $100,000peryear.

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Preliminaryconstructioncost.a. Pleaseseebudgetpagefordetail.Labor,office,infrastructure,equipment,fuel,land,water,

contingency,environmental,other. -40milecanal $259.3millioninImperialCounty,CA. -95milescanal $270.9millioninLagunaSalada,BajaCaliforniaMexico. -Economicdevelopment $30.0million. Total $560.2million.

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SeatoSeaSeawaterCanalOperatingObjectives(projectdescription).

a.Objectiveone(Health).

IncreasetheSaltonSeawaterlevelapproximately20feetandcover50,000acresofexistingshoreline(70milesby1,000feet)andcover75,000to100,000acresofpotentialdrylakebedinfiveyearsorless.OncetheSaltonSeaisfilledtodesiredlevel,importedseawaterwouldbeadjustedtomaintainthedesiredlevel(replacereducedinflowsand

evaporation).Theprincipalbenefitofcoveringdry,exposedlakebedistoreducedtoxicblowingdustandpreventingpotentiallungandcardiovasculardamageintheregionalpopulation,estimatedat1.6million(RiversideCounty,ImperialCounty,MexicaliBajaCaliforniaMexico).

b.Objectivetwo(EconomicDevelopment).

Create family-based recreation; improve property values, improve quality of life andeconomic development in Salton City, Desert Shores, North Shore, Bombay Beach andLagunaSalada,Mexico.Create and/or improve the regional economy by increasing the lake level and preventblowingtoxicdust.Preliminaryestimatessuggest$1.0billioninnewactivityperyearifthe“cloudofsuspension-non-stopnegativenews”isremovedfromtheSaltonSeaimageandaclearpathtoafulllakeisstarted.Support the$10.0billion regionaleconomies inRiversideCountyand ImperialCountyand$1.0billioninStatetaxfrombeingnegativelyimpactedbyblowingtoxicdustandnon-stopnegative news from the Salton Sea. Please read the Palm Springs Chamber of Commercereport for details. The avoided cost and/or new income is substantial if the Salton Sea isrepaired. Improveevapotranspirationofwater toColoradoRiverbasin,more reserve freshwateravailableviarenewablepowereddistillationordesalinationintimesofdrought.

Farmingmicroclimateismaintained,helpingpreventagainstfrostandextremetemperaturesbytheSaltonSea'snaturalregulationoftemperature.c.Objectivethree(SaltReduction).

Improvewaterqualitytorestorefish,birds,andwildlifepopulationintheSaltonSea.Evaluate and present salt reduction concepts to lower the Salton Sea TDS from 60,000 to45,000TDSinlessthantenyearswithproperStateorprivatefunding.Based on StS research, eleven concepts could be developed to reduce the salt level from60,000 TDS to 45.0000 TDS over time. The fish and piscivorous birds would begin asubstantialrecover,helpingmakeupforthelossof95percentofthequalitywetlandhabitatintheState.TheSeatoSeadevelopmentteamrecommendseachconceptbeevaluatedandseveralpilotprojectsbeconductedtoconfirmwhicharemostfeasible.

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d.Objectivefour(Bi-NationalNon-ProfitProgramDevelopment).From2009through2013,theSeatoSea(JJP)projectreceivedextensiveprojectcoverageandoneMOUfromtheSaltonSeaAuthority,CVWD,IIDandImperialCounty.Inexchangefortheirsupport,StSpledgedtofundeconomicdevelopmentandsocialbenefitprogramstostimulateeconomicdevelopmentandenvironmentalprojectsattheSaltonSeaandMexico.Approximately $ 3.3million per yearwill be allocated to fund non-profit regional programs:Planting trees, creating wildlife water, saltwater agriculture, fish farms, general economicdevelopmentintwocountriesand/orotherprograms.Pleaseseenon-profitbudgetfordetails.Approximately $ 30.0 million will be allocated (loan program) for economic developmentprojects. Please see budget for details - commercial fish farms, commercial bee/honeyranching, green house produce, salt water farming, recreation and a host of other smallerprojects..Approximately$75.0millionallocatedtopurchaserawdesertland,mountains,bighornsheepprotectionlands,75milesofcanaleasements,4roads,30,000acresofland,saltdevelopment,10,000 sqft office space, recreation, greenhouse - saltwater farming and/or land for futureeconomicdevelopmentopportunities(seebudgetfordetails).

3.Generalplanninganddesignprocess.

SeatoSeadevelopmentteampresentedthefollowingagenciesorprivatepartiesofferstoleaseland, purchase land, purchase seawater and/orMOUs to organize the process to bringwaterfromMexicototheUnitedStates.

a.Mexico.Sea to Sea development team presented seven (7)MOUs or land contracts to the followingMexicanagenciestopurchaseseawaterorleaselandincludingtheentire30-mileCoyoteCanal,15-mileseawater intakeand45milesof landeasementstoexportseawater fromMexico intoImperialCounty.Mexicanagencies(7).

a. CONAGUAagency.b. SEMARNATagency.c. CESPMagency.d. SEDATUagency.e. CityofMexicali(severalagencies).f. StateofBajaCalifornia(twoagencies).g. SecretariatofEconomicDevelopment,BajaCalifornia,Mexico.

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b.ImperialCounty.SeatoSeateamhascontactedthefollowingtoStateagencies,FederalagenciesandcountiestoleaselandorevaluatetheirinterestintheproposedSeatoSeacanalproject.Federalagencies(8).

a. BureauofLandManagement(crossingthrough45sectionsofland).b. BureauofReclamation.c. EPA.d. InternationalBoundary&WaterCommission.e. USBorderPatrol.f. U.S.ArmyCorpofEngineers.g. U.S.StateDepartment(Presidentialpermit).h. U.S.Military.Californiaagencies-ImperialCounty,RiversideCounty(7).a. StateLands.b. EPA.c. DepartmentofWaterResources.d. DepartmentofNaturalResources.e. DepartmentofCorrections.f. ImperialCounty.g. RiversideCounty.

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A.ProjectFeasibility.

In general terms, Granite Construction, Caterpillar equipment and other constructionprofessionals in California andMexico evaluated the project. As a group, they confirmed theprojectisfeasibleandcostestimatesarewithinindustrystandards.The Sea to Sea development team elected to hire constructionmanagers, projectmanagers,purchaseheavyequipment, retain industryexpertsandbuild theproject. If theproject isbidouttoexcavationcompanies,thecostwillincreasebyfiftypercent.Thegrouprecommendedtheheavyequipmentpackage,projectedfuelconsumptionbytypeofequipment,repaircosts,laborlevels,servicelevels,andestimatedcubicyardstoexcavatethe6canalprojects(2segmentsinCaliforniaand4segmentsintheLagunaSalada,135milesintotal).The concerns center on crossing five roads, one rail line, one gas line, onewater line, threeprivateroads,onemilitarybase,crossingonehundredlargedesertwashes,crossingundertwopower lines, obtaining the necessary environmental permits and project funding. The entirecanal path was inspected by truck and verified no obvious obstacles would block the canalproject were found. The entire canal path is composed of alluvial sand and/or four-inch orsmallerrock.Theprojectedexcavationincubicyardsis375CYperhourperunit.

a.ImperialCounty.

Imperial Canal, SOUTH (Hwy 8 south to the border). Canal design and excavation budget

separatedintotwoexcavationprojects.a. 10milesofunlinedcanal,bordertoHwy8,northtosouthatsealevelelevation.b. Pipesize:10-footpipe,1-inchthicksteel.c. Culverts:10-footreinforcedunits(40feetlongby10feetwide).d. Pumping:Theprojecthasnopumpstomoveimportedseawater.e. 70feetwideby15feetdeepwithtwogravelaccessroads.f. 2to1unlinedcanalsidewallslope.g. 50to200feetofsandoverburdentoberemoved.h. 27.5millioncubicyardsofsandandrockremoved.i. 54unitsofheavyequipmentworking24hours,6daysperweekfor312days.j. 162equipmentdrivers,threeshiftsperday,6daysperweek,312constructiondays.k. ProjectmanagementprovidedbyGraniteConstructionand/orothercompanies.l. HeavyequipmentandserviceprovidedbyCaterpillarofImperialCounty.m. FuelprovidedbyKinderMorgan.

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ImperialCanal,NORTH(Hwy8northtotheSaltonSea).a. 30milesofunlinedcanal,Hwy8toSaltonSea,northtosouthatsealevelelevation.b. 70feetwideby15feetdeep,withtwogravelaccessroads.c. 2to1unlinedcanalsidewallslope.d. 10feetofsandoverburdentoberemoved.e. Workingatsealevelcontour.f. 7.5millioncubicyardsofsandandrockremoved.g. 47unitsofheavyequipmentworking24hoursperday,6daysperweekfor312days.h. 141equipmentdrivers,threeshiftsperday,6daysperweek,312constructiondays.i. ProjectmanagementprovidedbyGraniteConstructionand/orothercompanies.j. EquipmentandserviceprovidedbyCaterpillarofImperialCounty.k. Numerouspermitsandenvironmentalevaluationsrequired.l. Waterflow:4mph,hydropowerestimatedat20baseloadmegawattsperhour.m. HeavyequipmentandserviceprovidedbyCaterpillarofImperialCounty.n. FuelprovidedbyKinderMorgan.

b.LagunaSalada,Mexicali,BajaCalifornia,Mexico(Coyoteseawaterintaketotheborder).

The canal design and excavation budget is separated into four excavation projects. Thepreliminary in-groundcanaldesign is70feetwideand15feetdeepwithtwogravelaccessroads.Theexcavatedsandandrockwillbeplacedontheeastsideof thecanal topreventpotentialovertopplingandflooding(flashfloods).The labor count is estimated to be 334 equipment operators, project managers and staffworkingthree8-hourshiftsperday,workingsixdaysperweekandfor312constructiondaysexcavatingsandandrockinfourcanalprojects.Diesel fuel is estimated to be 10.7 million gallons, 435,000 hours of heavy equipmentoperation,$270.9millionoverthreeyearstomove37.7millioncubicyardsofsandandrockinfourprojectsovertwelvemonths.a. 8-milenorthcanal(border-70feetby15feet).b. 37-milecentralcanal(newexcavation-70feetby15feet).c. 30-milesouthcanal(expandingexistingfloodcontrolcanal,10footexpansion).d. 15-mileseawaterIntake(expandingexistingfloodcontrolcanalandseawaterchannel).

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c.SystemCapacity.

CaliforniaandMexicancanaldesignincorporatedthefollowing.a. 30-footbordersyphontoreduceexcavationcosts.b. Hydropowerdevelopmentonthe30-footdropfromthebordertoHwy8.c. Designedtobebelowgradetopreventover-toppingduringflashfloodsorotherevents.d. Designedtowithstandextremeearthquakes(reasonforingroundcanals).e. Designedtotransport2.0millionacre-feetat4mphperyear(hydrorequires4mph).f. Excavationfillplacedoneastsidetoenhancecanalsafety.g. Flashfloodbridgeslocatedincriticalfloodareas(allowswatertoflowovercanal).h. Safetylinesandladdersplacedinone-mileincrements.i. 25-crosscanalbridgesforwildlife,recreationandsafetyevery5miles.j. Totalcubicyardsestimatedat75.0million.k. Ingeneralterms,tofilltheSaltonSealaketheprocesswouldtakethreetofiveyearsat

2.0 MAF and 1.5 MAF to replace existing river inflows, evaporation, water transfers,desalinationprocessingloss,andsystemslossviacanalseepage.

d.PipeorBoxCulverts. Theprojectmayuseten-footsteelpipesorcommercialcementboxculvertsforthe followingprojects.

-Border 15,000to25,000feetpipeorcementculvert. -Roads 50to75cementboxculvertsorlargediameter2-inchsteelpipe.

e.FishScreens.

Imported seawaterwill be screened toprevent fishor othermarine species fromenteringtheUnitedStates.

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f.WaterQuality–SaltRemovalProgram.

SeatoSeadevelopmentteamwillevaluateelevenseawaterfiltrationconceptstoreducethesalt content from 34,000 TDS to 15,000 TDS on 1.0million acre-feet per year of importedseawateriffundingisavailable.TheevaluationandpilotprojectswillbeconductedwiththeunderstandingthattheStateofCaliforniawillmandateandfundthisspecificdistillationordesalinationeffort.Theestimatedseasaltvolumeis40tonsper1acre-footofdesalinated-distilledwater.Thisprogramcouldcreate40.0milliontonsofseasaltperyearforcommercialsale(3.0milliontonsperyear)orbeusedtocreate500megawattsofbaseloadpowergeneration(solargradientponds).

a. Standardreverseosmosisdesalination.b. Parabolicdistillation.c. CSPdistillation.d. Inductioncoildistillation.e. Geothermaldistillation(steamrecovery).f. Geothermaldistillation(groundbased).g. Distributionpipereverseosmosisdesalination.h. Deepshaftreverseosmosisdesalination.i. Canal–waterwheel-compressedairpowerdesalination.j. Windpowerdesalination.k. 500-footelevationdropdesalination.

Sea to Sea development team will evaluate eleven distillation or desalination concepts toreducethesaltlevelandcontaminationlevelattheAlamoRiver,NewRiver,and300,000acre-feetofSaltonSealakewaterperyear.

g.EnergyUse.

SeatoSeacanalprojectofficesarenotalargeconsumerofpower.Theanticipateduseistwo10,000 sqft of office space lighting, cooling, and heating. The project is a net producer ofpoweratthemegawattlevel.

h.CommercialPowerGeneration.

Hydropowerproductionestimatedat20megawattperhourfromthe40-mileImperialCanalsystem. The drop is estimated to be 200 feet over 40 miles. 8 drops at 15 feet each isnecessarytocreate20megawattsofbaseloadhydropower.Thepowerwillbesoldtooffsetoperating cost and fundnon-profit operations. IIDhas expressed interest in developing thiselementoftheproposedprojectandpurchasepower.Solargradientpondpowerproductionistheprimarygenerationoptionandsaltdisposalsitefrom distillation or desalination programs (estimated at 40.0 million tons per year for fiveyears.)Powerproductionisestimatedtobe500.0megawattsatfullpotential.(Thisconceptisunder development; Brawley CA and several companies have expressed interest indevelopment).

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B.WaterSourceIdentification.

a. The source of seawater is the existing Coyote Canal - Sea of Cortez seawater intake. Theoperating seawater intake is 200 feet wide, 15 feet deep connecting the Sea of Cortez viaseveral large natural channels. The tide change is 15 feet per twelve hours. The intake willsupply seawater to the existing Coyote canal and has no contact to the nature reserve. Theseawater intake is 25 miles from the Sea of Cortez shoreline with limited road access (4wdroads).

b. The seawater intake is part of the existing flood control system forMexicali and it is used to

divert brackishwater into the Laguna Salada for water storage. If brackishwater is available(storm - rainwater), thewaterwillbedelivered into theLagunaSaladagroundwaterholdingbasins.TheMexicangovernmentwillnotallowtheLagunaSaladatobefloodedwithseawaterasitchangestheexistingwaterqualityofthebasin.

c. SeatoSeadevelopmentteampresentedMOUsandcontractstopurchaseseawatertoseveral

Federal agencies.Due to the comingnationalelection,ColoradoRiver,NewRiverandTijuanaRiver issues, the process has been delayed for three months and the program is underevaluation.

d. Throughextensivemeetingsandprogram review,Mexico (Federal -MexicoCity) confirmed it

wouldnotestablishalegalseawaterorfreshwaterright;Mexicowillsellseawaterforthetermoftheprojectbasedonaregionaleconomicdevelopmentprogramthatbenefitsbothparties.TheprogramincludestheresolutionoftheNewRiverandahostofotherprojects.

e. Mexicali,BajaCalifornia,Mexico.

ThefollowingitemsarepartoftheoffertoMexicoandCalifornia.a. ReturningtheentireflowoftheNewRiverbacktoMexico(50,000acre-feetperyear).b. Developing50,000acre-feetofnewwaterviadistillationforMexicali.b. Funding5.0to10.0millionpoundperyearfishfarmintheLagunaSalada,Mexicali.c. Supportingahostofothernon-profitprogramsinBajaCalifornia,Mexico.d. StateofCaliforniatofundSeatoSeaoperatingcostperyearandaccept2.0MAF.e. Leasingorpurchasing25,000acresofLagunaSaladafederallandorprivateland.f. $1.7millioninnon-profitprogramfundingperyear.g. Investing$270.0millionintheLagunaSaladaoverthreeyears.h. Loanprogram:$20.0milliontodevelopfishfarmandNewRiverprojects.

f.ImperialCounty,California. ThefollowingispartoftheoffertoMexicoandtheStateofCalifornia.

a.ReturningtheentireflowoftheNewRiverbacktoMexico(50,000acre-feetperyear).b.Developing200,000acre-feetofnewwaterviadistillation.c.Fundingone5.0to10.0millionpoundperyearfishfarminImperialCounty.d.Supportahostofothernon-profitprograms(Treefarm,farming,recreation).e.Leasing15,000acresofBLMfederallandfortheseawatercanalanddistillationprogram.f.$1.5millioninnon-profitprogramfundperyear.g.Investing$259.0millioninImperialCountyoverthreeyears.

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C.LandUse.

a.Mexicali,BajaCalifornia,Mexico.The95-mileseawatercanalandlandrequirementestimatedat30,000acres(distillationoperations, canal operations, canal excavation, four roads, farming lands, power generation,other).

b.ImperialCounty,California.

The 40-mile seawater canal and land requirement estimated at 15,000 acres (distillationoperation, canal operations, canal excavation, two roads, farming lands, power generation,other).CanalPath.

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D.EnvironmentalImpact.LagunaSalada,BajaCaliforniaMexico.

SeatoSeadevelopmentteamwillfundthefollowingnon-profitprogramstooffsetanyunforeseenenvironmentalimpactsandcreateregionalgoodwill.a.Growingandplanting10,000deserttreestopromotebee,bird,andanimalpopulationperyearforfiveyears.b.Fundingthedevelopmentof50“oasis”solarwellsthatwillproduce25gallonsofwaterperdaytosupplytothelocalburros,coyotes,mountainlions,rams,foxesand/orotherwildlifeinselectedlocationsintheLagunaSaladabasin.Eachlocationwillhave100treesand/orotherdesertplants.Estimatedsize10,000squarefeetper location.Projectfunding(repairandservice)willbeforthetermofthemastergroundleaseagreement.c.SeatoSeacanalwillprovide1,000acresofwater (canalsurface) forbirdsto landon,50oasissitesandmarinelifetoliveinsidethecanaloneachsideoftheborder.d. No surfacewater use, no impact to the groundwater basin, no connection to theAltoGolfoBiosphereandbridgeswillbeplacedeveryfivemilestocreateaccesstobothsidesofthecanal.e. Flash-floodbasinswill be created to capture rainwater to rechargegroundwater andpreventfloodingorcanalover-topping.ImperialCounty.Sea to Sea development team agreed to fund the following programs to offset any unforeseenimpactsandcreateregionalgoodwill.a.Growingandplantingof10,000desert treesperyear for fiveyears topromotebee,bird,andanimalpopulation.b.Fundingthedevelopmentof50“oasis”solarwellsthatwillproduce25gallonsofwaterperdaytosupplytothelocalburros,mountainlion,rams,foxesand/orotherwildlifeinselectedlocations.Each locationwillhave50 to100 treesand/orotherdesertplants.Estimatedsize10,000squarefeetperlocation.c.SeatoSeacanalwillprovide500to1,000acres(canalsurface)ofwaterforbirdstolandonandmarinelifetoliveinsidethecanal(fishfarm,saltwateragriculture).d.Nosurfacewateruse,noimpacttothegroundwaterbasin,andbridgeswillbeplacedeveryfivemilestocreateaccesstobothsidesofthecanal.e. Flash-flood basins will be created (inside existing channels) to capture rainwater to rechargegroundwaterandpreventfloodingorcanalover-topping.

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E.SaltonSeaSalinity.

SeatoSeadevelopmentteamresearchedandconfirmedelevenconceptstoremovesaltfromtheSalton Sea, New River, Alamo River and/or the 1.0 MAF of imported seawater. The cost ofevaluationand/orpotentialjointventureswillrequire800hoursoftimeperprojectand$60,000toevaluateeachproject(Twostaff,twomonthslaboreachandtravelcost).The ultra-pure sea salt (brine) will be sold and the balance of the salt converted into powerproductionviasolargradientponds.Pleaseseemaponpage7.

F.WaterUse.

TheSea toSeadevelopment teams intention is to raise the lakeapproximately20 feet (-220)byimporting 2.0 MAF for three to five years. Once the lake is stabilized, the imported seawaterinflows will match evaporation and decreased flows from the New River and Alamo River tomaintainthedesiredlakelevel, includingtheuseofall formerboatramps(estimatedat1.4MAFand-220elevation).Lowering the salt levelof imported seawater,NewRiverorAlamoRiverwater isour strategy tolowertheentiresaltleveloftheSaltonSeafrom60,000TDSto45,000TDSovertime.

G.CrossBorderGovernmentalCoordinationandPermitting.

Sea to Sea development team conducted several phone meetings and one dinner meeting toconfirmanyissuesorconcerns.Atthistime,IBWCsupportsseawaterimportationandwillevaluateany permit request presented. Primary concerns center on program funding, water purchasepermits,issuesrelatedtotheborderwallandNewRivercontamination.Sea to Seadevelopment teamcontacted50-plus government agencies and spokewithwell over100peopleintwocountries.Atthistime,NOONEisobjectingtheSeatoSeaconceptortheurgentneedtocoverthelakebeddustwithimportedseawater.The followingMexican government agencies have been contacted or presentedMOUs detailinghowtomovetheprojectforward.

a. CONAGUAagency.b. SEMARNATagency.c. CESPMagency.d. SEDATUagency.e. CityofMexicali(severalagencies).f. StateofBajaCalifornia(twoagencies).g. SecretariatofEconomicDevelopment,BajaCalifornia,Mexico.

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H.ProjectDevelopmentSchedule.

a. Sea to Seadevelopment timeline is organized to confirm themostpressing issues first. If theGovernmentofMexicoorprivatepartiesrefusetoissueawaterpurchaseagreementorcriticallandsalesorlandleases,theprojectwillbestopped.

b. FormalapprovalinMexicoandCaliforniacost. $3.5million

-200itemconstructioncostreviewinImperialCountyandMexicali. -TwelvemonthtoarrangewaterpurchaseagreementfromMexico. -TwelvemonthtoarrangewaterpurchaseagreementfromCalifornia.

c. TwelvemonthEIRprocesscost,ImperialCounty. $5.0million

d. TwelvemonthEIRprocesscost,Mexicali,BC,MX. $1.0millione. Twelvemonthexcavation&constructioncost.

-ImperialCounty,CA. $259.4million -LagunaSaladaBaja,CAMX. $270.9millionI.OperationSchedule.

a. SeatoSeacanaloperationwillhavetwo24/7administration–canaloffices.b. The purpose of the two offices is tomanage the flow of seawater, power operations, water

operations,saltproduction,recreationaccess,farmingaccessandprovidecanalsecurity. -Imperial 57staff. -Mexicali 33staff.

c.TheentirecanalsystemwillbeoperatedonSCATAwithtenemergencycanalgatesthatcanstoptheflowofwaterand/orspillwaterintoemergencyholdingbasins.Theseawaterintakeshallhavefoursea-lockgatestolockoutthetidesifnecessary.

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4.CostProjections.

Preliminarycostprojectionsareseparatedbytopicandadetailedequipmentlistisprovided.TheexcavationcostdatawasprovidedbyGraniteConstruction,CaterpillarEquipmentCompanyandhostofconstructionexpertsinCaliforniaandMexico.The125-milecanalhasbeenseparatedinto6excavationprojects.Eachprojecthasbeenclearlydefinedbybuildingmaterials,staffinglevels,scopeofwork,equipmentrequirements,fuelconsumption,projectplanning,parts,equipmentservice,foodsupply,watersupply,trashmanagement,staffhousing,medical,roads,powerneeds,environmentalissuesorprojectsandcubicyardexcavationestimates.Basedon7,300estimatedhoursofoperationforeachlargeunit(Cat390,CatD10,Cat665)itiscost-effectivetopurchasetheheavyequipmentversusrentingitandpayingtheovertimefees,transportcharges,servicecharges,aswellasCaterpillardealerservicelaborrates,overheadandrentalprofit.Becominganowneroperatoristhemostcost-effectivewaytomanagesixexcavationprojectsandrelatedconstructionprojects.AlltheprojectequipmentcanbepurchasedviathreenationalauctionservicesoverthreemonthsandmovetotheElCentrostorageyard.ThesameserviceswillselltheunitswhentheprojectiscompletedfromtheElCentrostorageyard.Excavationandconstructiondetailareavailableuponrequest.

ProjectSummary-ProjectConstructionCosts.

EstimatedTotalCost % Notes

ImperialCanalExcavationNORTH IC $43,832,721.60 7.82% 30-milecanal,Hwy8toSaltonSea

ImperialCanalExcavationBORDER IC $56,518,375.20 10.09% 10-milecanal,BordertoHwy8

EIR,Engineering,Permits,ProgramManagers IC $51,990,392.63 9.28% EIR,Engineering,opsstaff

ConstructionEquipment IC $46,107,000.00 8.23% 92units-Heavyequipment

LandExpense IC $25,000,000.00 4.46% 15,000acresprojectland

CanalStaffOperationOffice IC $2,135,341.20 0.38% 57personcanaloperationsoffice

Contingency IC $33,750,000.00 6.02% Contingency@fifteenpercent

SubTotalImperialCounty,CA

$259,333,830.63 46.29%

NorthLagunaSaladaCanalExcavation(Border) LS $14,747,136.00 2.63% 8-milecanalthroughtheborder

CentralLagunaSaladaCanalExcavation LS $15,166,363.20 2.71% 37-milecanal,LS

SouthLagunaSaladaCanalExcavation LS $10,431,168.00 1.86% 30-milecanal,LS

SeawaterIntake&CanalDredgeExcavation LS $16,172,839.20 2.89% 15-mileseawaterintakecanal

EIR,Engineering,Permits,ConstructionManagers LS $51,009,921.88 9.11% EIR,Engineering,opsstaff

ConstructionEquipment LS $72,750,925.89 12.99% 127units-Heavyequipment

LandExpenseA LS $25,000,000.00 4.46% 25,000acres

LandExpenseB LS $25,000,000.00 4.46% 25,000acres

CanalStaffOperationsOffice LS $1,750,907.45 0.31% 33personcanaloperationsoffice

Contingency LS $38,850,000.00 6.93% Contingency@fifteenpercentSubTotalLagunaSalada,BajaCAMX

$270,879,261.61 48.35%

TotalConstructionCost

$530,213,092.24 94.64%

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NonProfitProgram

EconomicDevelopmentLoan(Fishfarmproject) LS $10,000,000.00 1.79% LargestfishfarminMexico

EconomicDevelopmentLoanImperialCountyCA IC $10,000,000.00 1.79% LargestfishfarminU.S.

NewRiverDiversionLoan(LSWaterRecharge) LS $10,000,000.00 1.79% SendNRwaterbacktoMexicoSubTotal

$30,000,000.00 5.36%

TotalConstructionCapitalCost

$560,213,092.24 100.00%

AnnualSeatoSeaOperatingCompany $19.15 $38,305,622.25 44.58% 90personoperatingcompany

BiNationalCanalConstructionDebtService $23.81 $47,618,112.84 55.42% Programdebtservice

SubTotalOperatingCompanyExpense $42.96 $85,923,735.09 100.00%

CAStSFoundation-TreePlantingProgram $0.25 $500,000.00 15.38% Plantingtrees

CAStSFoundation-EconomicDevelopment $0.25 $500,000.00 15.38% Newprojectdevelopment

CAStSFoundation-CompanyOperatingFunds $0.25 $500,000.00 15.38% Operationfunding

SubTotalCASeatoSeaFoundationOperatingCost $0.75 $1,500,000.00 46.15%

MxStSFoundation-NewRiverDiversion $0.13 $250,000.00 7.69% SendNRwatertoMexico

MxStSFoundation-EconomicDevelopment $0.25 $500,000.00 15.38% Newprogramdevelopment

MxStSFoundation-OrphanageProgram $0.25 $500,000.00 15.38% Communityfarmingprogram

MXStSFoundation-OperatingFunds $0.25 $500,000.00 15.38% Operations

SubTotalMXSeatoSeaFoundation $0.88 $1,750,000.00 53.85%

TotalSeatoSeaFoundation $1.63 $3,250,000.00 100.00%

TotalOperatingCostwithDebtService $44.59 $89,173,735.09

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SeatoSeaequipmentsummaryandoperatingdetail(estimate).-$93.7millioninheavyequipmentcost.-206heavyequipmentunits.-364workers(equipmentdrivers,engineering,projectmanagersandoperationsstaff).-312constructiondays.-3shiftsperday,six-dayworkweek.-19.9milliongallonsofdieselfuelovertwelvemonths($68.5million).-800,000excavation-constructionhoursovertwelvemonths.-100,000managementhoursovertwenty-fourmonths.-72.5millioncubicyardsofsandmovedovertwelvemonths(6canalexcavationprojects).-6constructionteamsoperatingonindividualexcavationbudgets,staffingandequipmentlevels.-2canalexcavationsinImperialCounty,4canalexcavationsintheLagunaSalada.-Allcanalexcavationwilloperate3shiftsperday,6daysperweekuntilcompleted.

38 Caterpillar390excavators.25 Caterpillar665drivablepanscrapers.20 CaterpillarD10dozers.12 Caterpillarroadgraders.9 Caterpillarfront-endloaders.15 Projectmanagertrucks(FordEscapeSUV).12 30-tonsidedumptrailerswithcabs.10 Industrialworklights.9 Low-boyhaultrucks(Caterpillarequipment).9 10-personcrewvans(Excavationcrews).6 15,000gallondieselholdingtanks-dieselfuelingoperations.5 Watertrucks.5 250KWgenerators.4 Fuelandservicetrucks(ServicetoCaterpillarequipment). 1 500KWgenerators.1 75-toncrane.1 25-tonforklift.1 8’treemover.1 Heavyequipmentrepair-servicecenter,LagunaSalada,BajaCalifornia.2 Quarryoperationstosupplyrockandgravel,300milesofcanalroads.1 Dredgeoperationtoserviceandexpandseawatercanalsystem.1 Kitchenoperationtofeed300peopleperday,312constructiondays(LagunaSalada).1 300employeecabins(equipmentdrivers&staff,LagunaSalada).

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5.Planforfundingofproposedproject.

IftheStateofCaliforniaagreestofundtheSeatoSeaoperatingcostviaalong-termO&Mcontract,theprojectcanbefundedviabondsorprivatefunding.ThefollowingprojectscouldoffsetthedevelopmentandoperatingcostofSeatoSeaproject,largescaledistillationandsaltprojects.Ifanyofthefundingrecommendationsareaccepted,theinterestcostsavingswouldbesubstantial.Fundingconcepts:a.Add$1.00toeverymegawatt/hourperhourtransferredontheinterstateelectrictransmissiongridperdayforfiveyears.Thisfeecurrentlyexistsandcouldbeexpanded. -Noimpacttoretailelectriccustomers,thepowersellersorbuyerspaythiscost. -Estimatedcapitalraised$250.0millionperyearforfiveyears. -Avoidbondofferingand$47.6millionininterestchargesperyearforfifteenyears. -Paycashfortheproject,nodebtservice,problemsolvedinthreetofiveyears. -Onceconstructioniscompleted,lowerthetransmissionlinefeetofundStSoperatingand distilledwaterproductioncost.b.Refund25percentofallretailsalestax,incometaxandpropertytaxgeneratedinImperialCountyandRiversideCountyperyearforfiveyears. -Noimpacttolocalprograms,thefundingisfromtheStateofCalifornia. -Estimatedcapitalraised$250.0millionperyearforfiveyears. -Avoidbondofferingand$47.6millionininterestchargesperyearforfifteenyears. -Paycashfortheproject,nodebtservice,problemsolvedinthreetofiveyears). -Onceconstructioniscompleted,lowertherefundpercentagetofundStSoperatingand distilledwaterproductioncost.c.Add$3.00permonthtoeveryelectricmeterinCaliforniaperyearforfiveyears. -MinorpersonalinvestmenttorepairthelargestlakeinCalifornia. -Estimatedcapitalraised$250.0millionperyearforfiveyears. -Avoidbondofferingand$47.6millionininterestchargesperyearforfifteenyears. -Paycashfortheproject,nodebtservice,problemsolvedinthreetofiveyears). - Once the project is completed, lower themeter charge to fund annual StS operating and distilledwaterproductioncosts.

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d.Developacompany/newbusinessrelocationprogram"SaltonSeaPioneerProgram".

a. Create5,000NOTAXSaltonSeacompanyrelocationpermits.b. 5to10yeartermtoincentivizerelocationofcompaniesandpeopletoSaltonSeatowns.c. NorthShore,BombayBeach,SaltonCity,SaltonSeaBeach,DesertShores,TravertinePoint..d. Promoteeconomicdevelopmentandnewconstructioninvestment.e. $1.7billioninnewconstruction(5,000buildings@$350,000perbuilding).f. $875.0millioninlaborspending(25,000workersat$35,000peryear).g. $150.0millioninlocalspendingperyear(25,000workersspending$500.00permonth).h. Programdevelopmentcostunderevaluation.

e.Potentialdistilledordesalinatedwatersales(ColoradoRiverBasinStates).

a. Sell 200,000 acre-feet of freshwater to fund the development of distilled or desalinatedwaterprogram.

b. 200,000acre-feet@$750.00peracre-foot.Annualsales$150.0millionperyear.c. Profit will fund the development of a large scale distillation program (debt service and

operationcost).d. Technicallyspeaking800,000acre-feetofwaterperyearcouldbedistilled-desalinatedand

placedintotheSaltonSeatoreducethesaltlevelorblenddownthesaltlevelofimportedseawater(34,000TDSto15,000TDS).

e. Thelandrequirementsestimatedat10,000acres(distillationunitsandsaltoperations)and

thecosttobuildtheprojectatthislevelisveryexpensive. -Thesaleof200,000acre-feetof freshwaterat retail ratesmight funddebtserviceand operatingcosts.

f. Programdevelopmentcostunderevaluation.f.Potentialseasaltsales(RetailandCommercial).

a. Sell 3.0 million tons of sea salt per year to fund large scale distillation or desalinationprogramandSeatoSeaprogramdevelopmentcost.

b. Seasaltfromlargedistillationordesalinationprograms,westsideofImperialCounty.c. 3.0milliontonsat$100.00pertonor$300.0millionperyearinsaltprogramsales.d. Programdevelopmentcostunderevaluation.

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g.SellingTaxCredits. -CreateandsellStateofCaliforniataxcreditstofundtheproposedprograms.Presentprogramtothetop5,000taxpayersinCalifornia.Thetaxcreditprogramallowsareducedtaxratetoencourageparticipation.h.SellBase-LoadPower. -SolarGradientPonds:500megawattsat$75.00permegawatt/hour.$328.5millionperyear. -HydroelectricPower:20megawattsat$75.00permegawatt/hour.$49.2millionperyear.

Summary:Onbehalf of the extended Sea to Sea development team, thank you for reviewing the Sea to Seacanal company proposal to prevent blowing dust at the Salton Sea and economic developmentrelatedprojects.Sincerelyyours,GaryJennings&DanJohnsonManagingPartnersSeatoSeaCanalCompanyJennings&JohnsonPartnership(JJP).