California Air Resources Board

Lake Shore Mojave and Lake Shore Energy Operations Group Case Settles

Lake Shore Mojave (LSM) owned and Lake Shore Energy Operations Group (LSEOG) operated a power generation facility in Boron, California that was required to comply with the California Cap-and-Trade Regulation. In 2013, an explosion rendered the plant inoperable and the companies insolvent.  In 2014, as required by the Cap-and-Trade Regulation, LSM surrendered compliance instruments to match 30% of its 2013 emissions.  In 2015, LSM failed to surrender the remaining 70%, or 29,906 compliance instruments.  The settlement requires the company to liquidate all available assets to use toward meeting its remaining obligations under the Cap-and-Trade Regulation.  Failure to do so will result in a stipulated penalty of $2,990,600 reflecting $100 per missing compliance instrument.

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