CARSON CITY, Nev.--(BUSINESS WIRE)--Lincoln County Water District, Vidler Water Company, a wholly-owned subsidiary of PICO Holdings, Inc.- (Nasdaq: PICO) and Toquop Power Holdings, LLC, (“Toquop Power”) announced they have entered into a definitive Option and Purchase Agreement for the acquisition by Toquop Power of the water rights necessary to operate the planned Toquop Power Generation Project in southern Lincoln County, Nevada.
The 1100 megawatt gas fired, quick-start power generation project represents nearly 10 years of dedicated effort by the Lincoln County Board of County Commissioners, Lincoln County Water District and its resource partner Vidler Water Company to make this project a reality.
Construction of the Project is estimated to take between 36 and 48 months at an estimated cost of $1.8 Billion. During construction the Project is estimated to employ approximately 800 construction workers and provide 15 full time positions upon completion.
The Option and Purchase Agreement grants Toquop Power the right to purchase from Lincoln/Vidler up to 7,240 acre-feet of water rights at $12,000 per acre foot. Toquop Power’s Option period runs through November 30, 2014 and when exercised, the transaction would close no later than December 31, 2014.
Peter Sawicki, project manager for Toquop Power Holdings, which has already committed significant resources to the Project indicated “without the persistent determination of Lincoln County and the drive and passion of the Water District Board as a whole, this opportunity for Lincoln County would not be possible. We look forward to a long and productive relationship with Lincoln County, the Lincoln County Water District and their resource partner Vidler Water Company.”
Dorothy Timian-Palmer, President of Vidler Water Company the parent company of Toquop Energy, Inc. stated, “We have worked side by side with Lincoln County officials for over a decade to make this project a reality for the residents of Lincoln County, and with the help of a lot of good people in Lincoln County and Toquop Power Holdings, we are one step closer to making the Toquop Power Project a reality. We appreciate their perseverance and support.”
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