Document:

PLANT OPERATING SERVICES AGREEMENT

     This Plant Operating Services Agreement (the "Agreement") is made and
entered into effective the 1st day of January, 1995 (the "Effective Date") at
Commerce, California by and between Mammoth-Pacific, L.P. a California limited
partnership (the "Owner") and Pacific Power Plant Operations, a California
corporation (the "Operator"), collectively the "Parties."

                                    RECITALS

     Whereas, the Owner is a limited partnership consisting of Pacific
Geothermal Company, a California corporation, Mammoth Geothermal Company, a
California corporation, CD Mammoth Lakes I, Inc. a Maryland corporation and CD
Mammoth Lakes II, Inc. a Maryland corporation, and is engaged in the business of
building and operating electric power plants fueled by geothermal resources
located near Mammoth Lakes, California commonly referred to as the G-1 Facility,
G-2 Facility, and G-3 Facility (the "Plants"):

     Whereas, the Operator is a California corporation, and is engaged in the
business of operating and maintaining alternative energy fueled electric power
plants; and

     Whereas, the Owner desires to retain the services of the Operator for
operation and maintenance of the Plants (the "Services") and the Operator is
willing to perform the Services upon the terms and conditions set forth in this
Agreement;

     Now, therefore, in consideration of the mutual covenants set fortherein,
the parties agree as follows:

                                    AGREEMENT

                                    Article 1
                             Appointment of Operator

     1.1 Relationship of the Parties. The Owner hereby appoints the Operator to
provide operating and maintenance personnel for the benefit of the Owner and to
perform the covenants and duties specified in this Agreement as an independent
contractor to the Owner. The Operator accepts such appointment and agrees to act
diligently on behalf of the Owner in performing its obligations under this
Agreement in a proper and workmanlike manner and in accordance with the
practices, methods, and actions customarily engaged in, or in use by, the
providers of operating and maintenance personnel and services for facilities of
a similar size and nature as the Plants and to perform all covenants and duties
specified in this Agreement as an independent contractor to the Owner. Nothing
in this Agreement shall be deemed to constitute the Operator as a partner or
coventurer of the Owner or create any form of trust between the Owner and the
employees of the Operator.

     1.2 Scope of Responsibility. General management of the Plants shall be the
responsibility of the Owner. Responsibility for the provision of personnel and
the performance of day to day operations only has been contracted to the
Operator pursuant to this Agreement, subject to supervision and general
direction by the Plant Manager, or his successor. In any publicity or
communications to third parties, the Operator shall be described as being
responsible for the provision of personnel to perform operation and maintenance
of the Plants, as an independent contractor, and the Owner shall be described as
the general manager of the Plants.

                                    Article 2
                                Term of Agreement

     The initial term of this Agreement, and the independent contractor
relationship created hereby, shall commence on the Effective Date of this
Agreement and extend from the Effective Date through the anniversary date in
1998, unless terminated earlier in accordance with Article 12 of this Agreement.

                                        2

Upon the expiration of the initial term of this Agreement, this Agreement shall
be automatically extended for three (3) additional calendar years on each
triennial anniversary date, unless terminated earlier in accordance with Article
12 of this Agreement, and provided that notice is not given as provided in this
Article 2 with respect to any three (3) year extension of the term of this
Agreement subsequent to the initial term of this Agreement. In addition to the
provisions of Article 12 of this Agreement, the Owner may terminate this
Agreement effective on the anniversary date in 1998, and each triennial
anniversary date thereafter, by giving written notice not less than thirty (30)
days prior to any such anniversary date and the Operator may terminate this
Agreement effective on the anniversary date in 1998, and each triennial
anniversary date thereafter, by giving written notice not less than one hundred
eighty (180) days prior to such anniversary date.

                                    Article 3
                                   Definitions

     As used in this Agreement, the terms set forth below shall have the
following meanings:

          (A) "Administrative Costs" means, without limitation, all home office
     costs incurred by the Operator in support of operation and maintenance of
     the Plants and shall be deemed to include, but not be limited to, allocated
     general and administrative costs, including annual employee performance
     evaluation and salary administration, payroll services, and other home
     office support services.

          (B) "Affiliate" means any person or entity, directly or indirectly
     through one or more intermediaries, which controls, is controlled by, or is
     under common control with a party to this Agreement.

          (C) "Agreement" means this Plant Operating Services Agreement.

          (D) "Effective Date" means the date first written above.

                                        3

          (E) "Manager, Operations and Maintenance" means the person appointed
     by the Operator to receive supervision and general direction from the Plant
     Manager.

          (F) "Operator" means Pacific Power Plant Operations.

          (G) "Operating Procedures" means any and all procedures, manuals and
     brochures containing installation, training, operating and maintenance
     instruction submitted to the Operator, on behalf of the Owner, for the
     Plants and any standard or special requirements of the Owner furnished to
     the Operator by the Owner for incorporation in such operating procedures.

          (H) "Owner" means Mammoth-Pacific, L.P. and any legal successors or
     assigns thereof.

          (I) "Plant Manager" means the person appointed by the Owner to
     provide supervision and general direction to the Operator on behalf of the
     Owner.

          (J) "Plants" means the geothermal electric power plants owned and
     managed by the Owner and located near Mammoth Lakes, California commonly
     referred to as the G-1 Facility, G-2 Facility, and G-3 Facility.

          (K) "Reimbursable Costs" means, without limitation, all direct and
     indirect labor costs of regular employees of the Operator specifically
     assigned to and resident at the Plants, to operate and maintain the Plants
     based upon certified payrolls; plus the costs of holidays, payroll taxes
     and workers' compensation and state disability insurance, liability
     insurance, fringe benefits, vacations, group insurance and other statutory
     contributions, recruitment (such as physicals and drug tests) and
     termination (such as accumulated vacation and severance), and litigation
     and claims (such as awards, penalties, attorneys fees and experts and
     consultants) arising from the Operator's performance of this Agreement
     except as provided in Article 10 of this Agreement.

                                        4

          (L) "Services" means all of the Plants' operating and maintenance
     services provided by the Operator for the benefit of the Owner pursuant to
     this Agreement.

                                    Article 4
                               Scope of Services

     4.1 Services of Operator. The Operator shall provide personnel to perform
the following operating and maintenance services, which shall be paid for
pursuant to, and in accordance with, the terms of Article 5 of this Agreement,
under the supervision and general direction of the Plant Manager, or his
successor, in accordance with applicable electric utility industry standards and
good engineering practices:

          (A) Plant Operation. Provide qualified employees to operate the
     Plants.

          (B) Plant Maintenance. Provide qualified employees to maintain the
     Plants.

          (C) Supervision. The Operator shall appoint a Manager, Operations and
     Maintenance, who will be a qualified manager with substantial experience in
     electric generating station design, construction, operations, and
     maintenance. He shall be responsible for the following:

               (1) Directing the development and execution of operations and
               maintenance plans and identifying plant improvements.

               (2) Day-to-day operational and maintenance matters, including
               execution of approved plans and procedures for all activities at
               the Plants.

               (3) Ensuring that the Plants are safely operated to provide
               maximum generation while meeting all safety and environmental
               requirements.

                                        5

               (4) Assisting the Plant Manager in developing an annual operating
               and maintenance budget for the Owner and being accountable to
               remain within the approved budget.

               (5) Obtaining the Plant Manager's concurrence before exceeding
               the approved budget.

               (6) Operational proficiency of all personnel.

               (7) Supervising and directing the staff.

               (8) Approving the hiring, discharges, performance appraisal and
               salary administration of all personnel.

               (9) Establishing work hours, shift arrangements and task
               assignments.

               (10) Verifying attendance of and approving time cards for payment
               purposes.

               (11) Ensuring the company's policies and procedures are adhered
               to.

               (12) Strict adherence to the Fitness for Duty Policy for all
               personnel.

               (13) Providing for on-going training and annual requalification
               of the Plants' operators.

               (14) Keeping the Owner informed of the status of the Plants and
               ensuring that all required reports are made.

          (D) Safety. Operate and maintain the Plants in a safe operating
     condition in accordance with written safety and security procedures to be
     provided by the Plant Manager and adhered to during all phases of the
     Plants' operation.

                                        6

          (E) Additional Services. Perform such additional Services relating to
     the Plants as may be designated in writing from time-to-time by the Plant
     Manager during the term of this Agreement. In the event such services
     cannot be performed by personnel currently employed by the Operator to
     operate, or support operation of the Plants, the Operator shall be
     compensated for such services in an amount to be mutually determined by the
     parties.

          (F) Observance of Laws. The Operator, and its employees,
     subcontractors, and consultants shall comply in all material respects with
     all applicable federal, state, and local statutes, ordinances and
     regulations.

     4.2 Services of Owner. The Owner shall provide the following services in
accordance with applicable electric utility industry standards and good
engineering practices:

          (A) Approve the hiring, discharge, performance appraisal and salary
     administration of the Operator's personnel.

          (B) Approve work hours, shift arrangements and task assignments
     for the Operator's personnel.

          (C) Provide general direction and supervision for the Operator's
     personnel.

          (D) Verify attendance of and approve time cards for the Operator's
     personnel for payment purposes.

          (E) Monitor the general performance of the Operator's personnel and
     advise the Operator, in a timely manner, of any problems, deficiencies or
     other unsatisfactory characteristics.

          (F) Provide a safe working environment for all personnel at the
     plants.

                                        7

          (G) Provide all necessary facilities, tools, equipment, materials,
     safety devices and services for the Operator's personnel.

          (H) Monitor the Operator's adherence to the approved budget.

          (I) Provide written safety and security procedures, operating and
     maintenance procedures for use by the Operator's personnel when working at
     the Plants.

          (J) Comply in all material respects with all applicable federal,
     state, and local statues, ordinances, and regulations.

                                    Article 5
                              Payments to Operator

     The Owner shall pay for all costs of the Services performed by the
Operator as follows:

     5.1 Reimbursable Costs. The Owner shall pay to the Operator on a monthly
basis the Reimbursable Costs incurred by the Operator during each month within
twenty-one (21) days of receipt and approval of invoices therefore by the Owner.

     5.2 Administrative Costs. The Owner shall pay to the Operator on a monthly
basis a fixed amount agreeable to both parties which reimburses Operator,
without profit, for Administrative Costs.

                                    Article 6
                                 Labor Relations

     The Operator shall perform all required incidental labor relations services
as part of the Operator's tasks compensated as Administrative Costs. If it is
mutually determined by the Parties that any such services are not incidental or
cannot be adequately performed by personnel employed by the Operator, the
Operator shall be compensated for such services that are approved by the Owner
in an amount to be mutually agreed upon in advance by the Parties. With respect
to

                                        8

employees engaged in the Services at the Plants, the Operator shall be the
"General Employer" and the Owner shall be the "Special Purpose Employer" within
the meaning of California law. The Operator shall establish a payroll and
benefit plan and select, hire, promote, and have a right to discharge employees
engaged in the Services subject to Owner's supervision and general direction and
approval. The Operator shall pay all wages, benefits, withholding taxes, and
insurance relating to such employment. The Operator's employees shall be
regularly assigned to work at the Plants and shall not be reassigned without
advance approval by the Owner's designated representative. In the event of
termination of this Agreement, the Owner may solicit employees of the Operator,
for employment by the Owner or any third party selected by the Owner to continue
operation of the Plants.

                                    Article 7
                               Covenants of Owner

     7.1 Plant Manager. The Owner shall designate a Plant Manager who shall be
authorized to represent the Owner in all matters relating to the Plants and this
Agreement, and the Operator shall be entitled to rely on the representations,
general direction, supervision and control of the Plant Manager or his
successor.

     7.2 Access to Plants. The Owner shall provide the Operator and its agents,
employees, subcontractors and consultants full and free access at all times to
the Plants to perform the Services under this Agreement.

                                    Article 8
                                Audit and Records

     The Owner shall have the right, at the Owner's expense, to investigate and
audit the books and records of the Operator, during normal business hours upon
reasonable prior notice, to establish the accuracy of substantiating invoices
and documents and records in order to disallow any unauthorized costs and to
assure compliance with the terms of this Agreement.

                                        9

                                    Article 9
                                    Insurance

     9.1 Operator's Insurance. The Operator shall furnish and keep in force at
all times during the term of this Agreement at least the following minimum
insurance coverage with deductible amounts and other terms satisfactory to the
Owner:

          (A) Workers' compensation insurance as required by law for the
     protection of all employees engaged in performing the Services and
     employer's liability insurance in an amount of not less than one million
     dollars ($1,000,000) for bodily injury, each occurrence, one million
     dollars ($1,000,000) for bodily injury by disease, each employee; and

          (B) Comprehensive automobile liability insurance including owned,
     non-owned and hired vehicles covering bodily injury and property damage to
     a combined single limit in an amount of not less than one million dollars
     ($1,000,000) each occurrence; and

          (C) Comprehensive General Liability Insurance, including blanket
     contractual, explosion, collapse, underground hazards, property damage,
     independent contractor's liability, all applicable to bodily injury
     including death of any person(s) and property damage arising out of or in
     connection with this Agreement to a combined single limit of one million
     dollars ($1,000,000) each occurrence and in the aggregate where applicable.

     The Operator shall provide certificates evidencing such insurance coverage
to the Owner issued by an insurance company authorized to do business in the
State of California and acceptable to the Owner before commencing performance of
the Services and renewal certificates for any such insurance at renewal or
within thirty (30) days thereafter. Such insurance shall be primary and not
excess to or contributing with any insurance or self-insurance maintained by the
Owner. All policies described above shall be endorsed to require at least thirty
(30) days written notice to the Owner of any material change or cancellation.
All policies described above, except for workers' compensation insurance, shall
be endorsed to name the Owner as an additional insured with respect to any
liability which may

                                       10

ensue as a result of, or in connection with, Services performed under this
Agreement. The Owner shall cooperate with the Operator and applicable insurance
carriers and thoroughly investigate and report all occurrences which may result
in a claim. Except as provided in Article 11 below, the liability of the
Operator to any party shall in no event be limited to the Operator's insurance.
If Operator takes any action or omits to take any action that prejudices
insurance coverage and an occurrence would otherwise have been covered by
Operator's insurance, then Operator shall nevertheless be liable as if the
policy were in full force and effect.

     9.2 Owner's Insurance. The Owner shall, at the Owner's expense, furnish and
keep in force during the term of this Agreement insurance for:

          (A) Physical damage to the Plants from perils generally insured
     against by the owners of facilities similar to the Plants, equal to the
     replacement value thereof;

          (B) Comprehensive General Liability Insurance including blanket
     contractual, explosion, collapse, underground hazards, property damage,
     independent contractor's liability, all applicable to bodily injury
     including death of any person(s) and property damage arising out of or in
     connection with this Agreement.

     The Owner shall provide certificates evidencing such insurance coverage to
the Operator issued by an insurance company authorized to do business in the
State of California and acceptable to the Operator before commencement of the
Services and renewal certificates for any such insurance as they are issued. All
policies described above shall be endorsed to require at least thirty (30) days
written notice to the Operator of any material change or cancellation. The
Comprehensive General Liability Policy described above in Article 9.2(B) shall
be endorsed to name the Operator as an additional insured with respect to any
liability which may ensue as a result of, or in connection with, Services
performed under this Agreement. The Owner shall also obtain a waiver of
subrogation from the insurer(s) providing the property insurance described in
Article 9.2(A). The Operator shall cooperate with the Owner and applicable
insurance carriers and thoroughly investigate and report all occurrences which
may result in a claim.

                                       11

The liability of the Owner to any party shall in no event be limited by the
limits of the Owner's insurance.

                                   Article 10
                                    Indemnity

     10.1 Owner's Indemnity. The Owner shall defend and indemnify the Operator
and any Affiliate of the Operator, against, and save and hold the Operator and
its Affiliate harmless from any and all liability, claims, demands, damages and
costs of every kind and nature including injury to, or death of, any and all
persons, including, without limitation, employees or agents of the Owner or of
the Operator or any subcontractor or any other person, or persons and for
damage, destruction or loss, to or of any and all property, real or personal,
including, without limitation, property of the Operator or of any subcontractor
or of any other person or persons, to the extent resulting from or in any manner
arising out of or in connection with any act or omission of the Owner, in
connection with this Agreement, or arising out of any act or omission of the
Operator taken pursuant to the direction of the Owner or any act or omission of
Operator taken in a situation where the Owner should have provided direction and
did not provide such direction; in any case, provided that the Operator acted in
good faith and in a manner reasonably believed at the time and under the
circumstances to be in or not opposed to the best interests of the Owner and,
further, that the Operator was not negligent in any act or omission giving rise
to the claim.

     10.2 Operator's Indemnity. Subject to the limitations set forth in Article
11, the Operator shall defend and indemnify the Owner, and any entity having an
ownership interest in the Owner, against, and save and hold the Owner harmless
from, any and all liability, claims, demands, damages and costs of every kind
and nature including injury to, or death of, any and all persons, including,
without limitation, employees or agents of the Operator or of the Owner or any
subcontractor or any other person, or persons and for damage, destruction or
loss, to or of any and all property, real or personal, including, without
limitation, property of the Owner or of any subcontractor or of any other person
or persons, to the extent resulting from or in any manner arising out of or in
connection with any act or omission of the Operator in connection with this
Agreement, provided

                                       12

that the Owner was not negligent in any act or omission giving rise to the claim
(except any claim for which the Operator is entitled to indemnification as
provided in Section 10.1 above).

                                   Article 11
              Limitation of Liability and No Consequential Damages

     11.1 Limitation of Liability. The Operator's liability to the Owner, and
any entity having an ownership interest in the Owner, for injury or damage to
the Owner resulting from or in any way arising out of the active or passive
negligence, gross negligence, or willful misconduct of the Operator shall be
limited as provided in this Article 11. The Operator's liability to the Owner
for injury or damage to the Owner resulting from or in any way arising out of
the active or passive negligence of the Operator shall be limited only to the
extent of any insurance coverage that is actually applicable to and paid with
respect to any such injury or damage. The Operator's liability to the Owner for
injury or damage to the Owner resulting from or in any way arising out of the
gross negligence or willful misconduct of the Operator shall be limited only to
the extent that, with respect to damage to the Owner's property, the Operator
shall not be liable to the Owner for any loss that is covered by the property
insurance to be provided by the Owner pursuant to Section 9.2 of this Agreement,
notwithstanding any deductible amounts or self-insured retentions associated
therewith, whether or not the Owner elects to file claim against such property
insurance.

     11.2 No Consequential Damages. Notwithstanding any provision to the
contrary in this Agreement, neither party shall be liable to the other or any
entity having an ownership interest in the other or any Affiliate of the other,
for any special, indirect or consequential damages or injury which may occur, in
whole or in part, as a result of the breach of any provision of this Agreement
or any activities or occurrences relating to this Agreement.

     11.3 Relationship to Owner's Partnership Agreement. Mammoth Geothermal
Company and Pacific Geothermal Company are Affiliates of the Operator, as the
term "Affiliate" is defined in that certain Amended and Restated Agreement of
Limited Partnership of the Owner. This Agreement shall govern the liability
between the Operator (including any Affiliates of Operator to the extent

                                       13

that such Affiliates are performing the services of the Operator under this
Agreement) and the Owner, notwithstanding anything in the Amended and Restated
Agreement of Limited Partnership of the Owner to the contrary.

                                   Article 12
                                   Termination

     12.1 Termination for Cause. This Agreement may be terminated for cause
effective thirty (30) calendar days after the party terminating the Agreement
gives written notice of termination under either of the following circumstances:

          (A) If the other party breaches any material term, condition, or
     covenant of this Agreement and such party fails to cure any such breach
     within thirty (30) calendar days of the notice of the occurrence of such
     breach (unless, if the breach cannot of its nature be cured within such
     thirty (30) calendar day period, the party receiving the notice commences
     in good faith to remedy such breach within such thirty (30) calendar day
     period, and to thereafter diligently prosecute such proceedings in good
     faith until the breach is remedied), such termination to be in addition to
     any other remedies the terminating party may have; provided that, if the
     Owner, in its sole judgment, determines that the Operator has breached any
     material term, condition, or covenant of this Agreement and that such
     breach cannot be cured within thirty (30) calendar days, then the Owner
     may, upon giving written notice to the Operator, immediately terminate this
     Agreement; or

          (B) Upon damage to, or destruction of, a substantial portion of the
     Plants, which damage or destruction cannot reasonably be expected to be
     repaired or rebuilt within one (1) calendar year.

          Upon any termination by the Owner pursuant to this Section 12.1, the
     Operator shall be compensated for all Reimbursable Costs incurred in
     performing the Services pursuant to this Agreement through the date that
     the Operator is reasonably capable of removing its employees from the
     Plants; provided that such removal shall occur in no event later than five
     (5) calendar days from the effective date of such termination. In the event
     of termination by the Owner pursuant to Section 12.1(A) above, no Fees

                                       14

     pursuant to Article 5 of this Agreement nor any prorated Administrative
     Costs shall be payable to the Operator for Services rendered after the date
     of such notice of termination. In the event of termination, pursuant to
     Section 12.1(B) above, any applicable prorated Administrative Costs shall
     be paid for Services rendered through the effective date of termination of
     this Agreement.

     12.2 Termination Without Cause. This Agreement may be terminated by either
party without cause effective sixty (60) calendar days from the date of written
notice of termination given by either party to the other party provided that the
effective date of the Operator's notice of termination may be extended by the
Owner as is reasonably necessary for the Owner, acting in good faith and with
due diligence, to retain a new operator to replace the Operator. Upon such
termination without cause, the Operator shall be compensated for all
Reimbursable Costs, and other termination-related direct costs incurred by the
Operator, including the Operator's prorated Administrative Costs earned to the
effective date of termination of this Agreement.

                                   Article 13
                                  Miscellaneous

     13.1 Publicity. All notices to, or other communication with, third parties
and any form of publicity concerning this Agreement and the transactions
contemplated by this Agreement shall be jointly planned and coordinated by and
between the parties. Neither party shall act unilaterally regarding such
notices, communication and publicity without the prior approval of the other
party, which approval shall not be unreasonably withheld.

     13.2 Notices. All notices required under this Agreement shall be in writing
and shall be deemed to have been duly given when delivered personally or sent by
registered or certified mail, postage prepaid to:

                                       15

     Owner:      Mammoth-Pacific, L. P.
                 c/o Pacific Geothermal Company
                 6055 East Washington Boulevard
                 Suite 608
                 Commerce, California 90040
                 Attention: Michael J. Walker
                            Vice President

     Operator:   Pacific Power Plant Operations
                 6055 East Washington Boulevard
                 Suite 608
                 Commerce, California 90040

     Any such notice or other communication shall for all purposes be treated as
being effective or having been given when actually received or if sent by mail,
upon the earlier of actual receipt or five (5) business days (Saturdays,
Sundays, and United Postal Service holidays excluded) after the same has been
deposited in a regularly maintained and serviced receptacle for the deposit of
the United States mail, addressed and postage prepaid. Either party may change
its address for receipt of notices by notice given in the manner provided
herein.

     13.3 Governing Law. This Agreement shall be interpreted in accordance with,
and governed by, the substantive and procedural law of the State of California.
The parties hereby consent to the jurisdiction of the courts of the State of
California in resolving any dispute arising under or concerning this Agreement.

     13.4 Subcontractors and Assignment. This Agreement may be freely assigned
by the Owner at any time. The Operator may not assign this Agreement or
delegate, assign, or subcontract all, or any part of its duties under this
Agreement without the express written consent of the Owner, and the Operator
shall not delegate, assign, or subcontract all, or any part, of its duties to an
Affiliate without the express written consent of the Owner. For the purposes of
this Section 13.4, a merger or a sale or transfer of fifty percent (50%) or more
of the issued and outstanding stock of the Operator shall be deemed an
assignment requiring the written consent of the Owner.

                                       16

     13.5 Integration. This Agreement constitutes the entire agreement between
the parties pertaining to the subject matter hereof; supersedes all prior
agreements and understandings, whether oral or written, which the parties may
have in connection herewith and may not be modified except by written agreement
of the parties. The parties and their legal counsel have cooperated in the
drafting of this Agreement and it shall therefore be deemed their joint work
product and shall not be construed against either party by reason of its
preparation.

     13.6. Severability. If any provision of this Agreement is determined by a
court of competent jurisdiction to be void or unenforceable in whole or in part,
such determination shall not affect or impair the enforceability or validity of
any other provision of this Agreement.

     13.7 Further Assurances. Each party shall do all necessary acts and make,
execute, and deliver such written instruments as shall from time-to-time be
reasonably required to carry out the terms of this Agreement.

     13.8 Waiver. Failure of either party at any time or from time-to-time to
enforce any of the terms of this Agreement shall not be construed to be a waiver
of such term or of such party's right to thereafter enforce each and every
provision hereof. No waiver of any term of this Agreement shall be effective
unless made in a writing signed by the party against whom any such waiver is
sought to be enforced.

     13.9 Authorization. The execution of this Agreement and the performance
hereunder of each signatory has been duly and validly authorized.

PACIFIC POWER                               MAMMOTH-PACIFIC, L. P.
PLANT OPERATIONS                            a California limited partnership
a California corporation                By: Pacific Geothermal Company,
                                            General Partner

By: /s/ Michael J. Walker                   By: /s/ Illegible
    ----------------------------                ------------------------------
Title: Vice President                       Title: President

                                       17LONG TERM AGREEMENT

                    FOR THE PURCHASE AND SALE OF ELECTRICITY

                                     BETWEEN

                          SIERRA PACIFIC POWER COMPANY

                                       AND

                        NEVADA GEOTHERMAL POWER PARTNERS

                               LONG TERM AGREEMENT
                                     BETWEEN
                          SIERRA PACIFIC POWER COMPANY
                                       AND
                        NEVADA GEOTHERMAL POWER PARTNERS

                                TABLE OF CONTENTS

Section                                                                     Page
-------                                                                     ----
   1.     Recitals.......................................................      1
   2.     Definitions....................................................      2
   3.     Exhibits.......................................................      4
   4.     Term and Termination...........................................      5
   5.     Remedies.......................................................      6
   6.     Sale of Capacity and Energy....................................      6
   7.     Determination of Commercial Operation Date.....................      8
   8.     Rate...........................................................      9
   9.     Project Schedule...............................................     10
  10.     Metering.......................................................     11
  11.     Guarantees.....................................................     11
  12.     Seller's Purchase of Capacity and Energy.......................     12
  13.     Payment........................................................     12
  14.     Maintenance....................................................     13
  15.     Continuity of Deliveries and Economic Dispatch.................     14
  16.     Project Design, Construction, and Operation....................     15
  17.     Interconnection................................................     17
  18.     Conditions.....................................................     18
  19.     Liability and Indemnification..................................     19
  20.     Insurance......................................................     19
  21.     Permits, Licenses, and Authorizations..........................     20
  22.     Right of First Refusal.........................................     21
  23.     Notices........................................................     22
  24.     Force Majeure..................................................     23

                               LONG TERM AGREEMENT
                                     BETWEEN
                          SIERRA PACIFIC POWER COMPANY
                                       AND
                        NEVADA GEOTHERMAL POWER PARTNERS

                          TABLE OF CONTENTS-(Continued)

Section                                                                     Page
-------                                                                     ----
  25.     Successors in Interest.........................................     24
  26.     Assignment.....................................................     24
  27.     Collateral Assignments.........................................     24
  28.     Entire Agreement...............................................     25
  29.     Governing Law..................................................     25
  30.     Munson Geothermal. Inc. Reorganization.........................     25
  31.     PSCN Approval..................................................     27
  32.     Dispute Resolution.............................................     28
  33.     Multiple Originals.............................................     29

                               LONG-TERM AGREEMENT
                            FOR THE PURCHASE AND SALE
                                 OF ELECTRICITY

     THIS AGREEMENT, for the purchase and sale of electricity is entered into as
of the date of its execution by and between SIERRA PACIFIC POWER COMPANY, a
Nevada Corporation ("Sierra"), and NEVADA GEOTHERMAL POWER PARTNERS, LIMITED
PARTNERSHIP; a Nevada limited partnership of which Hot Springs Power Company, a
Nevada Corporation, is the managing general partner ("Seller"). Seller and
Sierra hereinafter are sometimes referred to individually as "Party" and
collectively as "Parties".

1. Recitals. This Agreement is based upon the following facts:

     (a) Sierra is a public utility engaged in the purchase, production,
transmission, distribution, and sale of electric energy; and

     (b) Sierra purchases the capacity and energy produced by Qualifying
Facilities pursuant to provisions of the Public Utility Regulatory Policies Act
of 1978 ("PURPA") and the rules and regulations promulgated thereunder by the
Federal Energy Regulatory Commission ("FERC"), the California Public Utility
Commission ("CPUC"), and the Public Service Commission of Nevada ("PSCN"); and

     (c) Sierra requested proposals from a number of geothermal developers that
could develop Qualifying Facilities, as that term is defined below, to fill a
need for approximately 12,000 kilowatts of long term capacity at the least cost
and in the most reliable manner; and

     (d) The Seller presented a proposal for a 13,500 kilowatt geothermal
generating project located on the Brady Hot Springs Known Geothermal Resource
Area in Churchill County in Sierra's Nevada service territory, and

                                        1

     (e) Seller has represented that it shall obtain the rights to the real
property and underlying geothermal leaseholds to develop Seller's Project; and

     (f) Seller's proposal was submitted under the auspices of the trustee of
the Munson Geothermal Inc. Bankruptcy proceedings and as part of their proposal
Seller represented that all pending litigation against Sierra that is before the
Bankruptcy Court would be released in the event that they were chosen by Sierra;
and

     (g) Upon Sierra's review of the proposals received, Sierra chose the
Seller's proposal as the best value proposal to fill a portion of Sierra's long
term additional power needs; and

     (h) Seller desires to sell the electric capacity and energy produced at
Seller's generating facility to Sierra pursuant to the provisions of a long term
agreement.

     In consideration of the premises and the mutual covenants and conditions
contained herein, the Parties agree as follows:

2. Definitions. When used with initial capitalizations, whether in the singular
or in the plural, the following terms as used in this Agreement shall have the
following meanings:

     (a) "Adjusted Net Metered Output" shall mean Net Metered Output, as
adjusted for system transmission losses, if any, pursuant to Section 8.

     (b) "Agreement" shall mean this Long-Term Agreement for the Purchase and
Sale of Electricity.

     (c) "Commercial Operation Date" shall mean 2400 hours on the date upon
which Seller's Project meets the criteria set forth in Section 7.

     (d) "Contract Year" shall mean each one (1) year period commencing on
either the Commercial Operation Date or each anniversary of such date
thereafter, and ending on the next anniversary of the Commercial Operation Date.

                                        2

     (e) "Firm Capacity" shall mean power producing capacity of the Project
that shall be available to serve Sierra's Peak Period load during the term of
this Agreement.

     (f) "Firm Energy" shall mean energy of the Project that shall be available
to serve Sierra's load during the term of this Agreement.

     (g) "Interconnection Equipment" shall mean the equipment and facilities
required to effect an electrical interface between Sierra's electrical system
and Seller's Project including, but not limited to, electric lines, protective
equipment, metering and communication equipment.

     (h) "Net Metered Output" shall mean all electric capacity and energy
produced by Seller's Project less Seller's Project Station Use and
transformation and transmission losses, if any, between the meter and the Point
of Delivery.

     (i) "Peak Period" shall mean the total on-peak and mid-peak hours in a
billing period as determined in Section 5 of Exhibit D.

     (j) "Peak Period Capacity" shall mean the average capacity delivered to
Sierra over the Peak Period for any billing period, excluding any hours during
which Seller reduced deliveries in response to Sierra's exercise of its economic
dispatch rights under subsection 15(b) of this Agreement.

     (k) "Point of Delivery" shall mean the point where Seller's electrical
conductors contact Sierra's system as it shall exist whenever the deliveries are
being made.

     (l) "Prudent Electrical Practice(s)" shall mean those practices, methods,
and equipment, as changed from time to time, that are commonly used in prudent
electrical engineering and operations to design and operate electric equipment.

     (m) "Qualifying Facility" shall mean a cogeneration or small power
production facility which meets the criteria as defined in Title 18, Code of
Federal Regulations, Section 292.201 through 292.207.

                                        3

     (n) "Scheduled Maintenance Periods" shall mean those times during which
Seller's Project is shut down for routine scheduled maintenance.

     (o) "Seller's Project" or "Project" shall mean a geothermal generating
facility located within Sierra's service territory near Fernley, Nevada on the
Brady Hot Springs Known Geothermal Resource Area. Such Project shall consist of
all geothermal production and injection wells, geothermal fluid collecting and
processing facilities, electric generators, turbine(s), cooling facilities,
electrical interconnection facilities, and other associated plant facilities.
Specific make, model, and generator nameplate rating for the generating units
are contained in Exhibit A.

     (p) "Station Use" shall mean the capacity and energy used to operate the
Project's auxiliary equipment. Auxiliary equipment includes, but is not limited
to, forced and induced draft fans, well pumps, air coolers, boiler feed pumps,
lubricating oil systems, plant lighting, fuel handling systems, control systems,
and sump pumps.

3. Exhibits. The following Exhibits A through P are attached hereto and
incorporated herein by reference. Exhibits C, G, H, I, J and K, upon approval by
the PSCN of any amendments or supplements to, or replacements of such rules or
schedules, shall be modified to reflect such amendments, supplements, or
replacements. Exhibits A, E, F, L, M, N, O and P may be modified by mutual
agreement of the Parties. Exhibit B shall be modified pursuant to Section 6 of
this Agreement. Exhibit D shall be modified pursuant to Sections 5 and 6 of
Exhibit D.

     Exhibit A   Project Unit Listing

     Exhibit B   Capacity Table

     Exhibit C   Schedule CSPP

     Exhibit D   Payment Schedule

     Exhibit E   Sample Billing Calculations

                                       4

     Exhibit F   Estimated Project Schedule

     Exhibit G   Rule No. 16, Service Connections, Meters, and Customer's
                 Facility

     Exhibit H   Rule No. 17, Meter Tests and Adjustments of Bills for Error

     Exhibit I   Rate Schedule FSS, Firm Standby Service

     Exhibit J   Rule No. 2, Description of Service

     Exhibit K   Rule No. 15, Cogenerators and Small Power Producers (QFs)

     Exhibit L   SPPCo. Engineering Standard 2.2GN02

     Exhibit M   Facility Wiring Diagram and Specifications

     Exhibit N   Final Interconnection Drawing

     Exhibit O   Milestones Schedule

     Exhibit P   Semi-Annual Project Report

4. Term and Termination. This Agreement shall be effective from the date of its
execution by both Parties and shall continue thereafter for a term of thirty
(30) years after 2400 hours on the Commercial Operation Date (the "Term");
provided, however that this Agreement shall terminate earlier pursuant to the
provisions of Sections 29 and 30.

     This Agreement may be terminated at any time by written notice from Sierra
to Seller in the event any of the following conditions occur:

     (a) Seller fails to meet any one of the milestone completion dates pursuant
to Section 9 of this Agreement.

     (b) Seller's Project does not deliver any capacity and energy to Sierra
during any continuous 180 day period after the Commercial Operation Date of such
Project and Seller is not exercising reasonable efforts to resume operation of
the Project.

                                       5

     In the event of a termination, all rights and liabilities _______ under
this Agreement shall be preserved until satisfied.

     A notice of termination under this section shall be delivered under the
provisions of Section 22.

5. Remedies. Upon either Party's failure to perform any condition of this
Agreement, the other Party, except to the extent specifically limited by this
Agreement, may exercise any rights or remedies it may have in law or in equity
including but not limited to compensation for monetary damages, injunctive
relief and specific performance; provided, however, that neither Party shall be
liable to the other Party for any indirect, consequential, incidental, punitive
or exemplary damages. The definition of consequential damages shall include a
claim for lost profits by the Seller.

6. Sale of Capacity and Energy.

     (a) Subject to the provisions of this Agreement Seller shall provide to
Sierra and Sierra shall purchase Firm Capacity and Firm Energy in the following
manner:

          (1) Peak Period Capacity during each billing period in the Term hereof
     in amounts not less than the Peak Period Capacity values specified in
     Exhibit B, and

          (2) Firm Energy which is expected to total approximately 111,500,000
     kilowatt hours in any Contract Year subject to the restrictions specified
     in Section 15 of this Agreement.

     (b) At the end of the third Contract Year, and the end of each Contract
Year thereafter, Sierra shall perform the following calculations: 1) calculate
the three year average of the Peak Period Capacity for the three immediately
preceding years by adding the billing period Peak Period Capacity for those
thirty-six (36) months and dividing by thirty-six (36). 2) If such average is
below 95%

                                       6

and greater than or equal to __% of the Peak Period Capacity value in Exhibit B,
then the capacity rate for the next year shall be reduced 1% for each percent or
portion thereof that the average is below 100%; 3) If the average is less than
85% of the Peak Period Capacity value in Exhibit B, then the Seller shall pay
Sierra the sum of $1,000,000 as and for liquidated damages. This shall be a lump
sum payment in 1990 dollars and shall be escalated at GNPD beginning the year
1991 up to the year of the payment. This amount will be billed as soon as
reasonably practicable after the determination of the three year average and
shall be due within thirty (30) days of such billing.

     If the three year rolling average is less than 85% of the Average Peak
Period Capacity Value then specified in Exhibit B, then each of the Exhibit B
Peak Period Capacity values shall be replaced by the average Peak Period
Capacity value for that billing period in the three year period described above.
Said average Peak Period Capacity value shall be calculated by adding the Peak
Period Capacity value for that billing period in each of the previous three
years and dividing by 3. Sierra shall prepare a revised Exhibit B to incorporate
such revised Peak Period Capacity values and such revised values shall be used
thereafter, effective the first month of the new Contract Year. The capacity
rate will revert back to the amount specified in Exhibit D effective with the
revised Exhibit B. At the end of the next three contract years, and the end of
each Contract Year thereafter, Sierra shall repeat the calculations 1, 2, 3
above.

     (c) The Parties agree that Sierra will be substantially damaged in amounts
that will be difficult or impossible to determine if the Seller's Project does
not maintain a Peak Period Capacity value at or above 85% of the original Peak
Period Capacity values specified in Exhibit B. Therefore, the Parties have
agreed on sums which the Parties agree are reasonable as liquidated damages for
such occurrence. It is further understood and agreed that the payment of the
liquidated

                                       7

damages is in lieu of actual damages for such occurrence. Seller hereby waives
any defense as to the validity of any liquidated damages provision in this
Agreement.

7. Determination of Commercial Operation Date.

     (a) Seller shall demonstrate the Project capability during a shakedown
period of sustained operation prior to declaring the Project commercially
operable. The shakedown period of sustained operation shall be thirty (30)
continuous days during which period the plant shall generate for a minimum of
500 hours. The average generation net output level during the 500 hours shall be
at least 67% of the Peak Period Capacity value shown in Exhibit B corresponding
to the billing period in which the shakedown test is completed, provided that,
if the 500 hours span two (2) billing periods, the Peak Period Capacity value
shall be the weighted average of the two billing periods values based upon the
proportion of hours of operation in each billing period. Sierra shall review
recorded data to verify completion of the shakedown test.

     (b) As soon as possible after successful completion of the shakedown test,
Seller shall notify Sierra verbally and subsequently in writing pursuant to
Section 23 that the Project capability demonstration has been completed and
shall provide certification from independent professionals that the Project is
commercially operable. Such documentation shall certify that all major equipment
and auxiliary systems are installed and operational and are capable of
continuous operation for the Term in support of Project performance in
accordance with Exhibit B.

     (c) (1) Coincident with or subsequent to Sierra's review of the data
     described in Section 7(a) above, Seller may begin the test period for
     determination of the Commercial Operation Date. Said test period shall
     consist of 100 hours of continuous operation, designated by Seller, and
     delivery of capacity and energy by the Project to Sierra. As soon as
     possible,

                                        8

     but not less than seven (7) days after the completion of the test period of
     100 hours, Seller shall notify Sierra verbally that the test is complete,
     and specify the beginning and ending hour of said 100 hour test period.
     Seller shall submit such notification in writing pursuant to Section 23 to
     Sierra within seven (7) days of the verbal notification.

          (2) Sierra will determine the average of the 25 maximum on-peak and
     mid-peak hours of Adjusted Net Metered Output during the test period (the
     "Qualifying Average"), regardless of whether said 25 hours are continuous.

          (3) If the Qualifying Average does not equal or exceed 90% of the Peak
     Period Capacity value shown in Exhibit B corresponding to the billing
     period in which the 100 hour test is completed, the Project shall not be
     declared commercially operable for establishment of a Commercial Operation
     Date; provided that, if the 100 hour test spans two (2) billing periods,
     the Peak Period Capacity value shall be the weighted average of the two
     billing period values based upon the proportion of test hours in each
     billing period.

          (4) If the Qualifying Average equals or exceeds 90% of the Peak Period
     Capacity value shown in Exhibit B corresponding to the billing period in
     which the 100 hour test is completed, the Project shall be declared
     commercially operable for establishment of a Commercial Operation Date;
     provided that, if the 100 hours test spans two (2) billing periods, the
     Peak Period Capacity value shall be the weighted average of the two billing
     period values based upon the proportion of test hours in each billing
     period.

8. Rate.

     (a) Net Metered Output quantities shall be reduced to reflect the
additional system transmission losses, if any, that are determined to be
applicable

                                       9

to Seller's Project. The amount of the reduction shall be determined in the
interconnection study to be performed by Sierra for this Project. Sierra may,
upon __ days written notice, but no more often than once in any 12 month period,
________ the additional system transmission losses. Sierra shall submit in such
notice justification for the change, including any study results used in making
such determination. All payments under this Agreement shall be based upon the
Adjusted Net Metered Output quantities.

     (b) Sierra shall pay Seller for the Adjusted Net Metered Output of Seller's
Project produced between the effective date of this Agreement and 2400 hours on
the Commercial Operation Date pursuant to Exhibit C, Schedule CSPP.

     (c) If the Commercial Operation Date of the Project is on or before 2400
hours on October 1, 1991, then Sierra shall pay Seller, during the period
commencing on the Commercial Operation Date and continuing for the Term, for all
Adjusted Net Metered Output purchased from Seller's Project pursuant to the
applicable provisions set forth in Exhibit D.

     (d) If the Commercial Operation Date of the Project is after 2400 hours on
October 1, 1991, but on or before 2400 hours on May 1, 1992, then Sierra shall
pay Seller, during the period commencing on the Commercial Operation Date and
continuing for the Term, for all Adjusted Net Metered Output purchased from
Seller's Project pursuant to the applicable provisions set forth in Exhibit D.

9. Project Schedule.

     (a) Seller shall complete each Project milestone specified in Exhibit O,
Milestones Schedule, on or before 2400 hours on the date specified for each
milestone listed in Exhibit O and shall provide Sierra acceptable written
documentation as specified in Exhibit O certifying such milestone completion.
Such documentation shall be provided pursuant to Section 22 within ten (10) days
of the milestone completion date.

                                       10

     (b) Seller shall provide Sierra with the specific amount of: (1) steam in
pounds per hour, (2) pressure in pounds per square inch and (3) temperature in
degrees Fahrenheit, (all measured or recorded at the turbine inlet valve) which
are necessary to operate the Project at the average of the Peak Period Capacity
value specified in Exhibit B. Data shall be provided to Sierra by 2400 hours on
February 28, 1991. Subject to Sierra's review and acceptance, Seller may change
this data no later than concurrent to completion of Item 3 in Exhibit O. This
information will be used as a baseline and monitoring tool for items 3 and 7 in
Exhibit O.

     (c) Sierra shall acknowledge receipt of the documentation from Section 9
(a) and 9(b) and shall provide Seller with written acceptance or denial within
ten (10) days of receipt of the documentation. If any milestone is not completed
by 2400 hours on the date specified, this Agreement may be terminated effective
2400 hours on the specified milestone date.

     10. Metering. Seller's Adjusted Net Metered Output shall be determined by
meters installed at or compensated to the Point of Delivery and adjusted for
appropriate system transmission losses pursuant to Section 8(a). The metered
quantities shall be the gross Project output less Station Use. All meters will
be sealed, operated, and tested in accordance with Sierra's Electric Rules No.
16 and No. 17, Exhibits G and H, respectively.

11. Guarantees.

     (a) Upon signature of this Agreement by Seller, Seller shall provide to
Sierra an earnest money deposit of $67,500 based upon a fee of $5.00 per KW and
a capacity of 13,500 KW. The deposit may be in the form of cash, an irrevocable
letter of credit, or another form acceptable to Sierra. Such deposit, if other
than cash, shall list Sierra as beneficiary and provide Sierra with clear first
rights to the deposit in the event of a default as noted below.

                                       11

     (b) In the event Seller does not complete a milestone in accordance with
Section 9 of this Agreement, withdraws the Project, cancels the Project for any
reason including force majeure, or does not achieve a Commercial Operation Date
pursuant to Section 7 on or before 2400 hours on October 1, 1991, Seller shall
forfeit the $67,500 deposit to Sierra.

     (c) Sierra will refund the deposit to Seller if the Seller establishes a
Commercial Operation Date for the Project pursuant to Section 7 of this
Agreement on or before 2400 hours on October 1, 1991.

12. Seller's Purchase of Capacity and Energy.

     (a) Subject to Sierra's transmission capacity limitations, Sierra agrees to
provide electric capacity and energy to meet Seller's Station Use at times when
Seller's Project generation output is less than the Project Station Use. Such
service shall be provided pursuant to the applicable rate schedule contained in
Exhibit I, Schedule FSS, which is applicable to the backup/standby service that
is being provided to Seller under this Agreement. Such sale shall be subject to
the provisions of Exhibit J, Rule No. 2, Description of Service.

     (b) Seller agrees to limit the starting inrush electric current of its
generators and motors so as not to cause more than a four (4) percent voltage
dip on Sierra's transmission system to which Seller's Project is interconnected.

13. Payment.

     (a) Peak Period Capacity and Firm Energy sold by Seller to Sierra pursuant
to Section 6, shall be determined by meters installed at or compensated to the
Point of Delivery. Such meters shall be read by Sierra during a billing period
as defined in Exhibit D and such metered amounts shall be used by Sierra to
calculate the payment to Seller pursuant to Section 8. Within thirty (30) days
of receipt of such meter readings, Sierra shall deliver payment for such Peak
Period Capacity and Firm Energy to Seller at the address provided in Section 23.

                                       12

     (b) Electricity supplied by Sierra to Seller pursuant to Section 12 shall
be paid for by Seller upon receipt of billing from Sierra, pursuant to Exhibit
I. Should Seller fail to pay statement(s) from Sierra in full pursuant to
Exhibit I, Sierra may offset future payments to Seller under this Agreement by
such amounts.

14. Maintenance.

     (a) Seller shall provide Sierra with a list of proposed Scheduled
Maintenance Periods by April 1 of each calendar year for the following 24 month
period, but not later than six (6) months prior to beginning the proposed
scheduled maintenance. This list shall be subject to Sierra's review and
acceptance. Review and acceptance of the proposed maintenance schedule shall be
completed promptly but in no event longer than sixty (60) days after receipt by
Sierra. Such acceptance shall not be unreasonably withheld. The Parties shall
coordinate such maintenance in order to minimize the impact on the Parties'
systems. Sierra shall provide Seller with a list of scheduled maintenance
periods on equipment that will impact the delivery of capacity and energy from
Seller's Project as soon as reasonably practicable.

     (b) In the event the Project must be shut down for unscheduled maintenance,
Seller shall notify Sierra as soon as practicable of the necessity of such
shutdown, the time when such shutdown has occurred, or will occur, and the
anticipated duration of the shutdown. Seller shall take all reasonable measures
and exercise reasonable efforts to avoid unscheduled maintenance and to limit
the duration of the shutdown.

     (c) An operating procedures document prepared by Sierra which details the
operation procedures to be followed by the Project operators and Sierra's
dispatchers shall be executed by the Parties prior to delivery of capacity and
energy from the Project.

                                       13

15. Continuity of Deliveries and Economic Dispatch.

     (a) Subject to Prudent Electrical Practices, Sierra may require Seller to
curtail, interrupt, or reduce deliveries on Net Metered Output, in order for
Sierra to construct, install, maintain, repair, replace, remove, investigate, or
inspect any of Sierra's equipment or any part of its system, or if Sierra
determines that curtailment, interruption, or reduction is necessary because of
emergencies or operating conditions on its system, other than economic dispatch
which is described in Section 15(b) below. Sierra may require that Seller reduce
its generation on any hour that Sierra would otherwise be required to operate
Sierra's plants below a minimum operational level. In such circumstances, Sierra
shall not be obligated to accept deliveries of, or pay Seller for, Adjusted Net
Metered Output that otherwise would have been delivered during such period of
curtailment, interruption, or reduction. Sierra shall use reasonable efforts to
resume acceptance as soon as is reasonably practicable.

     (b) Sierra shall have the right to economically dispatch the Project for a
maximum of 4,000,000 kilowatt hours of Adjusted Net Metered Output each Contract
Year. Such economic dispatch capability shall be exercised by verbal notice to
Seller by Sierra by 1000 hours on the day preceding the day on which the Project
will be economically dispatched. Such notice shall include the hours and the
reduced energy price for such hours. Seller shall have the option of accepting
the reduced energy payment as specified by Sierra at the time of such notice for
continued deliveries of capacity and energy, or discontinuing delivery of
capacity and energy for the period described in Sierra's notice. Seller shall
notify Sierra verbally by 1100 hours of the option Seller has selected.

     For any month in which Sierra exercises its economic dispatch rights for
energy under this subsection, Sierra shall provide Seller an accounting of the
reduced energy price contained in the verbal notice by Sierra to Seller. Such

                                       14

accounting shall be included as part of the following month's payment to Seller
as provided in Section 13.

16. Project Design, Construction, and Operation.

     (a) Seller shall, at Seller's expense, design, construct, install, operate,
and maintain Seller's Project. Specific special Project requirements as noted in
the interconnection study to be conducted by Sierra shall be incorporated into
the design of the Project. Seller shall provide Sierra with those
specifications, drawings, and electrical data concerning the Project necessary
to allow Sierra to make stability and protection studies. All specifications and
changes in specifications, including new or additional equipment, shall be
subject to Sierra's review and acceptance. Such review and acceptance shall be
completed promptly but in no event longer than sixty (60) days after receipt by
Sierra and shall be for the sole purpose of insuring that Seller's Project is
compatible with Sierra's system. Such acceptance shall not be unreasonably
withheld. Sierra's acceptance of Seller's specifications, drawings, and
electrical data shall not be construed as confirming nor endorsing the design,
nor as a warranty of safety, durability, or reliability of the Project. Sierra
shall not, by reason of any review, acceptance, or failure to review, be
responsible for the Project, including but not limited to the strength, details
of design, adequacy or capacity thereof, nor shall Sierra's acceptance be deemed
to be an endorsement of the Project.

     (b) The design and construction of the Project shall be Seller's
responsibility, and Seller shall ensure that the requirements of all applicable
federal, state, and local laws, and all regulations promulgated by such laws are
met. Prior to commencement of generation, and upon completion of any major
changes, Seller at Seller's expense, shall arrange for the Project to be
inspected and approved by appropriate federal, state, and local officials to the
extent required by applicable law.

                                       15

     (c) Once Seller's ___ Sierra's electrical facilities are connected, both
Parties will operate their respective facilities in accordance with Exhibit K,
Rule _. 15, Exhibit L, Sierra's Specification 2.2 GN 02, and revisions and
replacements thereto; Exhibit M, the Facility Wiring Diagram and Specifications
and Exhibit N, Final Interconnect Drawing agreed upon by the Parties to this
Agreement. The Parties acknowledge that with operating experience adjustment of
the operating requirements may be necessary.

     (d) Sierra's obligation to interconnect Seller's Project is contingent upon
the approval of plans and specifications described in Section 17 below.

     (e) Seller shall be responsible for the operation, maintenance, and
refurbishment of the Project to insure continued delivery of Firm Energy and
Peak Period Capacity pursuant to Section 6(a). Refurbishment shall include, but
not be limited to the drilling of additional wells and the installation of
replacement or additional generating equipment. Sierra shall have the right to
review any proposed refurbishments, modifications or installations made by
Seller and witness all such refurbishments, modifications or installations and
any formal well tests on production, injection, and slim hole wells performed by
Seller. Seller shall provide Sierra with thirty (30) days prior notice of its
intent to perform any refurbishments, modifications, installations, or formal
well tests or in the event of unplanned maintenance such notice shall be given
as soon as reasonably practicable.

     (f) Should seller elect to construct an additional geothermal facility or
facilities utilizing the same resource used by the Project, Seller warrants that
the additional facility or facilities will be operated in a manner which will
not reduce or interfere in any way with the extent or availability of geothermal
fluid to operate the Project in accordance with this Agreement.

                                       16

     (g) Seller shall ____ available to Sierra during the construction period of
the Project all pertinent information in connection with Seller's steam supply
in the Brady's area, including drilling data, test and well performance,
information and any reports pertaining to the reservoir. Sierra shall hold this
information confidential to the extent such information is designated as such by
the Seller.

     (h) Seller shall provide to Sierra on January 1 and July 1 of each year, a
Semi-annual Project Report which shall include, but not be limited to the
information described in Exhibit P. In February of each year, Seller and Sierra
shall meet to conduct an annual review of plant and resource performance.
Additional meetings shall be held as necessitated by Project performance.

17. Interconnection.

     (a) Seller shall install all Seller's Interconnection Equipment. Seller's
Interconnection Equipment shall be of utility grade and of a rating sufficient
to accommodate the delivery of the generation under this Agreement. Seller shall
allow Sierra to review the adequacy of all protective devices and to establish
requirements for settings and periodic testing; provided, however, that neither
such action or inaction by Sierra shall be construed as warranting the safety or
adequacy of Seller's Interconnection Equipment. Seller shall not make any
modification to Seller's Interconnection Equipment which substantially affects
the delivery of electricity without advance written notification to Sierra and
ultimate acceptance of each change by Sierra. Such review shall be done promptly
but in any event no longer than sixty (60) days from Sierra's receipt of all
information necessary for such review. Such acceptance shall not be unreasonably
withheld. All such equipment installed hereunder shall conform with the National
Electrical Code. Seller shall reimburse Sierra for Sierra's costs associated
with initial and periodic testing of Seller's Interconnection Equipment.

                                       17

     (b) Connection of Seller's Interconnection Equipment' Sierra's system shall
be by or under the direction of Sierra at Seller's expense. Sierra shall
schedule and complete the final interconnection and testing of the
interconnection facilities pursuant to a Special Facilities Agreement.

     (c) In the event that it is necessary for Sierra to install any facilities
and equipment on Sierra's system or to reinforce Sierra's system to accommodate
Seller's deliveries, Seller shall reimburse Sierra for all of Sierra's costs
associated therewith, in accordance with the provisions of a Special Facilities
Agreement. Not less often than annually, Seller shall also reimburse Sierra
pursuant to Section 14 above, for all of Sierra's operation and maintenance
costs as determined by Sierra, resulting from Sierra's installation of
facilities and equipment under a Special Facilities Agreement. In addition,
Seller shall pay for the cost of the replacement of any such facilities during
the term of this Agreement. Sierra shall use reasonable efforts to minimize such
costs.

18. Conditions. The obligation of Sierra to accept delivery of or purchase
capacity and energy under this Agreement is conditioned upon receipt of copies
of the following documents by Sierra prior to the initial delivery of Adjusted
Net Metered Output.

     (a) Evidence of the certification of Seller's Project as a cogeneration or
small power production facility pursuant to PURPA and the regulations
promulgated pursuant to said Act; and

     (b) Evidence of application for and receipt by Seller of any permits or
other approvals required by Chapter 704 of the Nevada Revised Statutes; and

     (c) A statement by independent qualified professionals sufficient to
establish that Seller's Project has geothermal resource supply and generation
equipment capable of producing energy and capacity at the monthly values noted
in Exhibit B for the full Term of this Agreement; and

                                       18

     (d) Plans and specifications for Seller's Project ___ Interconnection
Equipment which are acceptable to Sierra, as set forth in Sections 16 and 17
above; and

     (e) Evidence that Seller has made all filings necessary to qualify to do
business in the State of Nevada.

19. Liability and Indemnification. Each Party shall indemnify and hold harmless
the other Party against and from any and all loss and liability for personal
injury, bodily injury or property damage, resulting from or arising out of (1)
the engineering, design, construction, maintenance, or operation of or (2) the
making of replacements, additions, or betterments to, the indemnitor's
facilities. In addition, Seller shall indemnify and hold harmless Sierra against
and from any and all loss and liability for personal injury, bodily injury,
property damage, or financial damage claimed by any person or party as a result
of the manner in which Seller uses the Project's geothermal resource supply or
the facilities which interconnect Seller's Project with Sierra's electrical
system. Neither Party shall be indemnified for liability or loss to the extent
such liability or loss results from, or is contributed to by, that Party's
negligence or willful misconduct. The indemnitor shall, on the other Party's
request, defend any suit asserting a claim covered by this indemnity, and shall
pay all costs, including reasonable attorney fees, that may be incurred by the
other Party in enforcing this indemnity.

20. Insurance.

     (a) Seller shall maintain worker's compensation or self-insurance which
satisfies the applicable requirements of Nevada law. Within thirty (30) days
after execution of this Agreement, Seller shall provide Sierra with a
certificate evidencing such insurance.

     (b) Prior to connection of the Project to Sierra's system, Seller shall
secure and continuously carry for the Term hereof, with an insurance company or

                                       19

companies acceptable to Sierra, insurance policies for bodily injury and
property damage liability. Such acceptance shall not be unreasonably withheld.
Such insurance shall include: provisions or endorsements naming Sierra as
additional insured as its interest may appear; provisions that such insurance is
primary insurance with respect to the interest of Sierra and that any insurance
maintained by Sierra is excess and not contributory insurance with the insurance
required hereunder; cross-liability or severability of insurance interest
clause; and provisions that such policies shall not be cancelled or their limits
of liability reduced without thirty (30) days prior written notice to Sierra.
Initial limits of liability for all requirements under this Section shall be not
less than $1,000,000 for each occurrence.

     (c) Seller shall provide Sierra with a copy of each insurance policy
required under this Section, certified as a true copy by an authorized
representative of the issuing insurance company or, at the discretion of Sierra,
in lieu thereof, a certificate in a form satisfactory to Sierra certifying to
the issuance of such insurance. Seller shall submit such documents at the
address listed in Section 23 prior to connection of the Project to Sierra's
system and at all other times as such insurance policies are renewed or changed.

     (d) If Seller has not obtained such insurance or maintained the status of
such insurance, Seller shall not deliver capacity and energy to Sierra, and
Sierra shall have no obligation to accept any tenders of delivery until
appropriate insurance is obtained or reinstated. Sierra's obligation to purchase
shall be reinstated only upon receipt of certificates of insurance showing that
such insurance has, in fact, been obtained or reinstated.

21. Permits, Licenses, and Authorizations. It shall be Seller's responsibility
to obtain any and all state, federal, and local permits, licenses, or other
documents necessary to the construction and operation of Seller's Project and
the sale of

                                       20

energy and capacity _________ to Sierra. If Seller has ___ obtained such
documents or maintained the status and approvals they represent, Seller shall
not deliver capacity and energy to Sierra and Sierra shall have no obligation to
accept any tenders of delivery until the appropriate documents are obtained or
reinstated. Sierra's obligation to purchase shall be reinstated only upon
receipt of proof that such documents have, in fact, been obtained or reinstated.

22. Right of First Refusal.

     (a) Sierra shall have an exclusive right of first refusal to purchase any
Transfer Interest (as hereinafter defined) on the terms and conditions set forth
herein. If Seller or any of its subsidiaries, affiliates or other related
entities ever desire to dispose of its or their rights, title, or interest in
the Project, or any part thereof (hereinafter referred to as a "Transfer
Interest"), other than by the sale and leaseback of the Project to provide
financing for the Project, or if Seller receives a bona fide offer for purchase,
lease or other disposition of Project, any part thereof or Seller's interest
therein (hereinafter also referred to as a "Transfer Interest"), which offer
Seller is prepared to accept, it shall give notice thereof in writing to Sierra
(the "Notice"). The Notice shall specify the terms under which Seller is
prepared to dispose of the Transfer Interest, including the purchase price of
the Transfer Interest, or include a copy of the acceptable offer received by
Seller, as the case may be.

     (b) For a period of ninety (90) days after receipt by Sierra of the Notice,
Sierra shall have the right to exercise its right of first refusal with respect
to the Transfer Interest by giving written notice thereof to Seller.

     (c) In the event Sierra elects not to exercise its right of first refusal
pursuant to the foregoing provisions, Seller may offer the same portion of such
transfer interest to a third party or parties. In no event shall such offer be
on substantially different terms or at a lower price than those offered to
Sierra,

                                       21

unless such terms or price _____ first been offered to Sierra according to the
procedure outlined in this section.

     (d) In the event Sierra elects not to exercise its right of first refusal
pursuant to the foregoing provisions and a sale or lease of the Transfer
Interest is not fully consummated, in accordance with the terms and conditions
set forth in the Notice, within one year from the date Sierra receives the
Notice, Seller agrees that Sierra shall have right of first refusal to purchase
or lease the Facility, or any part thereof, on the same terms and conditions
that were previously offered to Sierra. Any sale of any Transfer Interest shall
not extinguish Sierra's right of first refusal with respect to any portion of
the Project or the Seller, as the case may be, not transferred pursuant to such
sale. Sierra shall continue to retain the right of first refusal for any future
sale of any transfer interest. Any lease of any Transfer Interest shall not
extinguish Sierra's right of first refusal with respect to any extensions of
such lease or with respect to any other leases, sales or other dispositions of
any Transfer Interest.

23. Notices. Whenever in this Agreement it shall be required, permitted, or
desired that notice or demand be given by either Party to or on the other, such
notice or demand shall be in writing and may be either personally served or sent
by United States mail and shall be deemed to have been given when personally
served, when deposited in the United States mail, certified or registered, with
postage prepaid and properly addressed or when transmitted by facsimile.
Provided however, notices delivered by facsimile shall only be effective if
delivered on a day that is considered a regular business day by both parties.
For the purposes hereof, the addresses of the Parties hereto, until notice of a
change thereof is given as provided in this paragraph, shall be as follows:

                                       22

SIERRA:

Sierra Pacific Power Co.
Power and Fuel Contracts Manager
6100 Neil Road, Reno, NV 89511
P.O. Box 10100
Reno, NV 89520
Phone: (702) 689-4889
Telecopy: (702) 689-4202

Seller:

Nevada Geothermal Power Partners, Limited Partnership
Randy Goldenhersh
6200 South Syracuse Way, Suite 125
Englewood, Co 80111
Phone: (303) 721-9550
Telecopy: (303) 779-8082

24. Force Majeure.

     (a) The term Force Majeure as used herein means unforeseeable causes beyond
the reasonable control of and without the fault or negligence of the Party
claiming Force Majeure such as acts of God, labor disputes, acts of a public
enemy, war, riot or other civil disturbance, epidemics or earthquake. Unless
caused by an independent identifiable event of Force Majeure, the
non-availability of geothermal resource supply to generate capacity and energy
from the Project shall not be considered an event of Force Majeure.

     (b) If either Party, because of Force Majeure, is rendered wholly or partly
unable to perform its obligations under this Agreement, that Party shall be

                                       23

excused from whatever performance is affected by the Force Majeure to the
extent so affected, provided that:

          (1) The Party claiming Force Majeure promptly gives the other Party
     oral notice, followed by written confirmation describing the particulars of
     the occurrence.

          (2) The suspension of performance is of no greater scope and of no
     longer duration than is required by the Force Majeure.

          (3) The nonperforming Party uses its best efforts to remedy its
     inability to perform. This subsection shall not require settlement of any
     strike, walkout, lockout, or other labor dispute on terms which in the sole
     judgment of the Party involved in the dispute, are contrary to its
     interest. It is understood and agreed that settlement of strikes, walkouts,
     lockouts, or other disputes shall be at the sole discretion of the Party
     having the difficulty.

          (4) When the nonperforming Party is able to resume performance of its
     obligation under this Agreement, that Party shall give the other Party
     written notice to that effect.

25. Successors in Interest. This Agreement shall be binding on both Parties, and
on their heirs, successors in interest, and permitted assigns except as provided
in Section 26 below.

26. Assignment. Subject to Section 27 below, neither Party shall voluntarily
assign this Agreement without the prior written consent of the other Party. Such
consent shall not be unreasonably delayed or withheld. Any assignment made
without such consent shall be void.

27. Collateral Assignments. Either Party shall have the right, without the other
Party's consent, but with a thirty (30) day prior written notice to the other
Party, to make a collateral assignment of its rights under this Agreement to

                                       24

satisfy the requirements of __ development, construction, or _____ long-term
financing.

     A collateral assignment as described above shall not constitute a
delegation of Seller's obligations under this Agreement, and this Agreement
shall not bind the collateral assignee. Any collateral assignee succeeding to
any portion of the ownership interest of Seller in the Project shall be
considered Seller's successor in interest and shall thereafter be bound by this
Agreement.

     Such assignment shall not increase Sierra's obligations nor decrease
Sierra's rights hereunder.

28. Entire Agreement. This document constitutes the entire agreement of the
Parties and supersedes all previous agreements whether written or oral. This
Agreement may be amended only by an instrument in writing signed by both Parties
hereto.

29. Governing Law. This Agreement shall be interpreted, governed by and
construed according to the laws of the State of Nevada, as if executed and to be
performed wholly within the State of Nevada. Any litigation by the Parties as to
this Agreement shall be in a court of competent jurisdiction in the State of
Nevada.

30. Munson Geothermal, Inc. Reorganization. The obligation of Sierra to purchase
capacity and energy from Seller pursuant to this Agreement is hereby made
expressly conditional on all of the following:

     (a) Execution by the Bankruptcy Trustee of Munson Geothermal, Inc., Case
No. 88-278, Ch. 11, pending in the United States Bankruptcy Court, District of
Nevada, and/or the reorganized debtor, at Sierra's discretion, of a written
Release of All Claims in a form acceptable to Sierra, releasing Sierra from all
claims the Bankruptcy Trustee of Munson Geothermal, Inc. and/or the reorganized

                                       25

debtor, at Sierra's discretion or may have, known or unknown including, but not
limited to, the claims in the Complaint in Adversary No. ADV88-0124;

     (b) Execution by the Bankruptcy Trustee of Munson Geothermal, Inc., of a
written Stipulation for Dismissal With Prejudice of Adversary Proceeding No.
ADV88-0124, styled "In Re Munson Geothermal, Inc. and/or the reorganized debtor,
at Sierra's discretion, and its wholly Owned Subsidiary, Volcano Drilling
Company, debtor; Munson Geothermal, Inc., a Delaware corporation, plaintiff, v.
Sierra Pacific Power Company, a Nevada corporation, defendant"; and

     (c) Confirmation by the United States Bankruptcy Court of a Plan of
Reorganization in the Munson Geothermal, Inc. Ch. 11 Reorganization, Case No.
88-278 which provides for all of the following:

          (1) The Release of All Claims and Stipulation for Dismissal with
     Prejudice of the Adversary Proceeding executed by the trustee and/or
     reorganized debtor (if any) as provided in Paragraphs 30(a) and (b);

          (2) A complete assignment of all rights and obligations from the
     trustee to the reorganized debtor (if any) of the three power contracts
     which were previously terminated by Sierra and which shall be terminated
     upon the execution of the Release and Stipulation, namely: The Long Term
     Agreement for the Purchase and Sale of Electricity between Sierra Pacific
     Power Company and Munson Geothermal, Inc. from the Black Butte I Project
     dated October 10, 1986; The Long Term Agreement for the Purchase and Sale
     of Electricity between Sierra Pacific Power Company and Munson Geothermal,
     Inc. from the Black Butte II Project dated October 10, 1986; and The Long
     Term Agreement for the Purchase and Sale of Electricity between Sierra
     Pacific Power Company and Munson Geothermal, Inc. for Brady/Ormat Project
     dated October 10, 1986, and all rights arising under the lawsuit designated
     as Adversary Proceeding No. 88-0124;

                                       26

          (3) The _______ of all rights to the real _______ and underlying
     geothermal leaseholds to develop Seller's Project; and

          (4) The incorporation and adoption of the terms of this agreement in
     its entirety and without change.

     The Seller shall take all reasonable action necessary to secure
confirmation by the United States Bankruptcy Court of a Plan of Reorganization
as provided for in (c) above which incorporates and adopts this Agreement in its
entirety and without change. Confirmation by the United States Bankruptcy Court
of such Plan of Reorganization which approves this Agreement shall be sought as
soon as reasonably practical subsequent to the date of execution of this
Agreement. Failure of the United States Bankruptcy Court to enter a final
non-appealable order confirming, within ninety (90) days of Sierra's execution
of this Agreement, a Plan of Reorganization which approves this Agreement shall
terminate this Agreement.

31. PSCN Approval. The obligation of Sierra to purchase capacity and energy from
Seller pursuant to this Agreement is hereby made expressly conditional on the
approval of this Agreement by the PSCN. The Parties shall take all reasonable
actions necessary to secure approval by the PSCN of this Agreement in its
entirety and without change. PSCN approval shall be sought as soon as reasonably
practicable subsequent to the date of execution of this Agreement. Failure of
the PSCN to approve this Agreement shall terminate this Agreement effective as
of the date of such PSCN action. PSCN approval shall not be considered to have
occurred unless the PSCN issues an order within ninety (90) days of the filing
of this Agreement for approval, which order:

     (a) Approves this Agreement in its totality and without change; and

                                       27

     (b) Makes a specific finding and order that the ______ 13,500 kilowatt
rating shall be included as a QF capacity resource addition eligible to meet
Sierra's firm capacity and load requirements; and

     (c) Makes a specific finding and order that Sierra acted in a reasonable
and prudent manner in executing this Agreement.

32. Dispute Resolution. In the event that a dispute should arise between Sierra
and Seller concerning the terms and enforcement of this Agreement, the Parties
agree to resolve their dispute by means of binding arbitration conducted in
Reno, Nevada, under the rules and procedures of the American Arbitration
Association. The Parties shall first endeavor to select a single arbitrator who,
by reason of his/her education and experience, is mutually acceptable to both
Parties. If the Parties are unable to agree upon a single arbitrator, they shall
each choose one (1) arbitrator, and the two arbitrators thus selected shall
choose a third arbitrator to form a three-member panel to hear and resolve the
dispute. In preparing their cases for presentation to the arbitrator(s), the
Parties shall have the same rights of discovery afforded to litigants under the
Nevada Rules of Civil Procedure and the local rules of the Second Judicial
District Court of Washoe County, Nevada.

                                       28

33. Multiple Originals. __ (2) copies of this Agreement have been executed by
the Parties. Each executed copy shall be deemed an original.

     IN WITNESS WHEREOF, the Parties hereto have executed this Agreement on this
5 day of OCT, 1990.

Sierra:
SIERRA PACIFIC POWER COMPANY

By: /s/ Illegible                          -------
    ------------------------------------    APPVD.
TITLE: Vice President                      -------
       Electric Operations                 ___ ___
                                           -------
                                           ___ ___
                                           -------

Seller:

NEVADA GEOTHERMAL
POWER PARTNERS, LIMITED PARTNERSHIP

By

HOT SPRINGS POWER COMPANY
A Managing General Partner

By: /s/ Illegible
    ------------------------------------
TITLE: President
DATE: 9/28/90

                                       29

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