Lake Shore Mojave and Lake Shore Energy Operations Group Case Settlement
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.