Firm Profile:

INTRODUCTION

Galati & Blek LLP is a Sacramento-based law and governmental relations firm with experience in a broad spectrum of legislative, regulatory and transactional matters specifically related to the permitting and development of energy facilities. Galati & Blek LLP offers services to developers in securing permits and environmental clearances, as well as structuring and negotiating project development agreements and related transactions.

For power plants with a generating capacity of 50 megawatts or more, California State Law requires a license from the California Energy Commission (CEC). The CEC's process is a thorough quasi-judicial proceeding with an emphasis on public and interagency participation. Although different permitting processes have been instituted in response to California's energy needs, an applicant still must expect that every aspect of the proposed plant's impact on the environment and on infrastructure and public services will be examined. Navigation of the process is painstaking but the successful applicant obtains a one-stop license to construct and operate a power plant within statutory time certain (from six months to one year, depending on the type of project and the level of opposition).

Those seeking to develop a power plant should not embark upon this adjudicatory, on-the-record process without experienced counsel since the CEC Staff, which is a party to all licensing proceedings, has benefit of its own counsel. On the other hand, it is as important to avoid an expensive, overly legalistic and unnecessarily confrontational process. Where there is opposition to a project, in addition to the required skills as an advocate, counsel must be experienced in coalition building and community outreach. Counsel should also be able to work cooperatively as part of an interdisciplinary team.

Due to the formal nature of the process, many developers and developers' consultants become frustrated by an inability to secure feedback from CEC Staff on important items such as environmental impacts, mitigation and alternatives. Utilizing counsel familiar with the history of the CEC can relieve much of this exasperation. Counsel should also be comfortable with Commissioners and with key Staff members, many of whom are the keepers of this institutional memory.

Galati & Blek LLP is uniquely situated to provide power licensing and legal and governmental relations services at the CEC. The Firm is structured to provide partner level attention to clients at cost-effective rates and staffing. As of the summer of 2004, the firm has successfully licensed approximately 2,895 megawatts of new power, including two projects that brought a combined 400 megawatts of crucially needed power on-line during the summer of 2001. The firm currently represents projects before the CEC that would add an additional 680 megawatts of new power.

PARTNERS AND APPROACH

As a firm, Galati & Blek LLP brings several unique advantages to businesses seeking to address legal, regulatory or legislative issues:

• Long-standing relationships with legislators, legislative staff, policy makers and interest groups provide clients with access and insight into the decision-making process.
• Compact size and niche focus provide clients with cost-effective partner attention.
• Experience in both legal and political fields brings both substance and savvy to bear on a client's behalf.
• Familiarity with the institutional history of a multiplicity of regulatory agencies aid clients in formulating and implementing successful legislative, regulatory and permit acquisition strategies.
• A thorough understanding of the California legal framework within which an energy provider must work.
• Transactional expertise to negotiate commercially reasonable agreements that allocate and shift risk according to the client's needs.

Scott Galati brings his experiences as an engineer and advocate in CEC and other proceedings. His unique combination of technical and legal skills enables him to interact well with the interdisciplinary team needed to successfully develop an energy project. He acted as lead counsel at the CEC for the first successful licensing of a large simple-cycle project. Mr. Galati's public power experience includes acting as lead regulatory counsel for the Southern California Public Power Authority Magnolia Power Project and for Silicon Valley Power's Pico Power Project. Mr. Galati is also currently acting as lead regulatory counsel for the permitting of the Roseville Energy Park Project for the City of Roseville. In addition to permitting, Mr. Galati has also managed environmental audits of CEC licensed projects and successfully negotiated retention of emission reduction credits for power plants.

Scott Blek focuses on the transactional aspects of power plant development. He has drafted and negotiated numerous fundamental project agreements, such as site ground leases, transmission line rights of way, agreements for the sale and purchase of emission reduction credits, power purchase agreements, water supply agreements, natural gas transportation agreements and EPC contracts. Mr. Blek has the unique ability to capture the negotiated commercial terms in a fashion that properly allocates risk and protects the clients in the event of a dispute. Mr. Blek brings over 10 years of local and international transactional experience to the firm and has acted as transactional counsel for Silicon Valley Power on the bidding and final development of a Design & Build contract for the construction of the natural gas pipeline and sewer pipeline for the Pico Power Project. Mr. Blek is currently acting as lead public contract counsel for all aspects of the procurement and construction for the City of Roseville's Roseville Energy Park.

Galati & Blek LLP brings a consensus-building, problem-solving approach to securing a financeable license from the CEC. The Firm's counsel and advocacy can transform a regulatory thicket into a clear and manageable path and can properly allocate regulatory risk through the careful drafting and negotiation of the appropriate contract documents.

CREDIBILITY

Credibility with the legislature and with regulatory agencies is the most critical element that an advocate can acquire and provide to a client. However, a client should take care that it selects a representative who brings credibility to bear on the client's behalf rather than one who seeks to gain credibility at the client's expense.

Our credibility is based on years of effective and forthright dealing. Our relationships reside on the rock of mutual respect and common professional interest.

We have successfully represented clients in formal and informal proceedings before such bodies as:

• The California Legislature
• The California Air Resources Board
• Air Pollution Control Districts
• The California Energy Commission
• The State Water Resources Control Board
• The United States Environmental Protection Agency
• United States Fish and Wildlife Service
• The California Department of Fish and Game