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I . When do the leases expire on the radio towers located on the
northwest portion of the property s-till,retained by Luminant? And, does the
revenue from those towers; }f the lease remain in effect after the sale, go with the
property owners?
Radio tower license agreement runs through 201.9. If property is sold, revenue
associated with the license agreement would be transferred to the new property
owner.
2. With regard to water rights, do the water rights run with the operation
of the plant, or are they permanent water rights assigned to Luminant by the TRA?
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Luminant has multiple water- right contracts / permits associated with North Lake,
some with the State of Texas and others with the City of Dallas. In general, these
permits are transferrable and do not tie specifically to plant operations (i.e., they do
not go away if the plant no longer operates). However, there are some instances
where the State of Texas, the City of Dallas or the TCEQ would need to be '
consulted prior to transfer to anot er owner.
3. How many total acres are involved in the sale, including the power
plant property itself?
Total Luminant ownership is approximately 1,052 gross acres. Approximately 112
acres of easements will be retained in fee, resulting in a possible conveyance of
940 net acres to the buyer.
4. How many acres related to the plant are reserved for transfer at a later
date? Also, is there a map of the reserved area?
Other than the lake, "Plant Island" is being defined as roughly 126 gross acres on
the north side of the lake.
5. Is Luminant willing to take a sale with terms related to timing of
payments?
Luminant would consider terms, but the timing of such payments would be a factor
in the selection of counterparty for the sale.
6. How many total acres of the lake must remain in place for Luminant
to continue to operate the plant?
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It is expected that the lake will remain intact during the remaining useful life of the
plant, regardless of owner.
7. Are there any environmental reports that we may access before
confirmation of the sale?
If the property were put under contract, any potential buyer would be able to
perform a Phase I environmental assessment of the site.
8. Are there any other special conditions or reservations of the sale?
Sale would be conditional upon Luminant's ability to operate the plant for some
period of time. Additional conditions would be in place regarding drilling pad
sites and ancillary easements required for gas transmission and development
infrastructure.
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9. What particular mineral interests are being reserved and where are the
sites for drilling on the acreage to be sold?
All mineral interests would be reserved. Locations of drilling pad sites have not
been finalized, but it is expected that the sites will be located near the radio towers
on the northwest corner of the property, near the current location of the fuel tanks
on the north central portion of the property, north of the power plant and near the
employee park on the east side of the property.
10. Can we obtain access to the property by accompanying Luminant
officials at a date to be determined in the near future?
Yes
11. What is the drop -dead date for us to respond as a "bidder" on the
property?
Luminant would appreciate a response from the cities by Friday, July 11, 2008 at
the close of business.
12. Is the city of Dallas aware of Luminant's intentions to sell this
property?
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The City of Dallas has been notified that Luminant has received an offer.
13. Would Luminant be interested in a lease back on the power plant site
until it is closed?
Yes, Luminant would consider a lease back. Economics of that lease would
obviously impact overall economic analysis.
14. If a lease back is planned or needed does Luminant want options to
renew in said lease?
Terms of lease period are to be determined by the buyer, however the more
flexibility Luminant has in this regard the better.
15. Is there a hard closing date?
Hard closing date has not been established, however, ability to close quickly does
add value.
16. Will this evolve into a "open" bidding process?
Not contemplated at this time, however, Lummant reserves that right.
17. Is there a format for bidding?
No format has been determined at this time.
18. If there is no firm close date is a December close date possible?
See # 15 above.
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