Excelaron Agrees to Prepare EIR
for Huasna Valley Project

FOR IMMEDIATE RELEASE

March 4, 2009


SAN LUIS OBISPO — Excelaron LLC announces today that the company will prepare an environmental impact report for the oil exploration and production project it proposes in Huasna Valley.

The decision was made because the public has demonstrated much confusion about the project and is meant to provide more time for public education and public participation in the planning process, company officials said.

"Over the past two years, Excelaron has worked diligently with the San Luis Obispo County Planning and Building Department and other regulatory agencies to provide the information and analysis required for a complete and feasible project description," said C.M. Florence, principal planner with Oasis Associates of San Luis Obispo. "We have also participated in several public meetings and have listened and responded to community questions and comments. Because we take those comments seriously, Excelaron has decided the appropriate course of action now is to prepare an EIR for the project."

The county recommended, and Excelaron accepted, a mitigated negative declaration as the appropriate environmental determination. As part of the public review process, county staff recently received comments from several community groups that either criticized the results or posed questions regarding the project and related details.

Excelaron believes there has been a plethora of information and analysis prepared to date, but acknowledges the difficulty of understanding these technical documents.

Excelaron will continue to be open and forthcoming about the project. To date, the company has held four community outreach meetings and made meaningful project description changes in response to the community's concerns. In a measure of good faith, Excelaron has requested a meeting with Huasna Valley Association representatives once again to discuss their concerns in greater detail.

"Excelaron's goal remains the same: to deliver an environmentally appropriate project that would provide for local jobs and work for local businesses," said Kit Matlick, Excelaron project manager. "This project will also add substantial tax revenues to county coffers, and most importantly, it will provide a much-needed domestic energy source."