1015-00004
· Calloway-Briggs Renewables Inc · Diligence
diligence-checklist.xlsx
DOCUMENT
M&A / Corporate
[sheet: Cover]
| Field | Value |
| Matter | Calloway-Briggs Renewables Inc. / Lumen Ridge Infrastructure Partners LLC — Solar Development Joint Venture |
| Matter Number | 48172.001 |
| JV Entity | Solstice Plateau Energy Holdings LLC |
| Client | Calloway-Briggs Renewables Inc. |
| Counterparty | Lumen Ridge Infrastructure Partners LLC |
| Prepared By | Megan Chu, Lead Associate, Calderwood & Harkness LLP |
| Assisted By | Derek Okonkwo, Working Associate, Calderwood & Harkness LLP |
| Responsible Partner | James Prentice, Calderwood & Harkness LLP |
| Billing Partner | Sandra Tung, Calderwood & Harkness LLP |
| Initially Circulated | October 2, 2023 |
| Final Version Date | November 22, 2023 |
| Counterparty Counsel | Haverford, Quinn & Steele LLP (Gregory Haverford III / Joanna Kline) |
| Financial Advisor (Client) | Ridgeline Barrow & Co. (Marcus Delgado) |
| Financial Advisor (Counterparty) | Whitmore Zanthor Group LLC (Elena Marchetti) |
| Environmental Consultant | TerraNova Environmental Sciences Inc. (Dr. Sharon Kessler) |
| Title Company | Meridian Land Title Company |
| Accounting / Tax Advisor | Pennington Clarke LLP (Harold Yeung, CPA) |
| Client's Existing Auditor | Greystone Hamill LLP |
| Insurance Broker | Blackthorn Risk Advisors LLC (Garrett Yoon) |
| Insurance Carrier | Ironclad Mutual Insurance Co. |
| Lender | Trident National Bank, N.A. (Patricia Henning) |
| Escrow Agent | Continental Fiduciary Trust Company |
[sheet: Summary Dashboard]
| Category | Total Items | Completed | In Progress | Outstanding | Not Applicable | % Complete |
| 1. Corporate / Organizational | 18 | 18 | 0 | 0 | 0 | 100% |
| 2. Real Property / Land | 14 | 14 | 0 | 0 | 0 | 100% |
| 3. Environmental | 12 | 12 | 0 | 0 | 0 | 100% |
| 4. Permits / Regulatory | 16 | 16 | 0 | 0 | 0 | 100% |
| 5. Contracts / Commercial Agreements | 20 | 20 | 0 | 0 | 0 | 100% |
| 6. Tax | 10 | 10 | 0 | 0 | 0 | 100% |
| 7. Insurance | 8 | 8 | 0 | 0 | 0 | 100% |
| 8. Litigation / Disputes | 6 | 6 | 0 | 0 | 0 | 100% |
| 9. Labor / Employment | 8 | 8 | 0 | 0 | 0 | 100% |
| TOTAL | 112 | 112 | 0 | 0 | 0 | 100% |
[sheet: 1. Corporate]
| Item # | Category | Description of Request | Target Entity | Responsible Party | Date Requested | Date Received | Status | Reviewed By | Notes / Comments |
| 1.01 | Corporate | Certificate of Incorporation / Articles of Incorporation (as amended) | Calloway-Briggs Renewables Inc. | CBR / Rebecca Whitfield | 2023-10-02 | 2023-10-06 | Complete | Megan Chu | Texas corporation; TX SOS File Number 0801647392; founded 2011 |
| 1.02 | Corporate | Bylaws (as amended) | Calloway-Briggs Renewables Inc. | CBR / Rebecca Whitfield | 2023-10-02 | 2023-10-06 | Complete | Megan Chu | Current version reviewed; no issues identified |
| 1.03 | Corporate | Certificate of Good Standing — State of Incorporation (Texas) | Calloway-Briggs Renewables Inc. | CBR / Rebecca Whitfield | 2023-10-02 | 2023-10-10 | Complete | Derek Okonkwo | TX SOS File Number 0801647392; good standing confirmed |
| 1.04 | Corporate | Certificates of qualification / registration to do business in foreign states (NM, AZ, DE) | Calloway-Briggs Renewables Inc. | CBR / Rebecca Whitfield | 2023-10-02 | 2023-10-12 | Complete | Derek Okonkwo | Qualified in New Mexico, Arizona, and Delaware |
| 1.05 | Corporate | Stockholders' agreement(s) and any amendments | Calloway-Briggs Renewables Inc. | CBR / Rebecca Whitfield | 2023-10-02 | 2023-10-07 | Complete | Megan Chu | Stockholders' agreement with Cascadia Growth Equity Fund III, L.P. (~22% equity stake); includes consent requirement for material transactions — see Category 1.12 |
| 1.06 | Corporate | Cap table / equity ownership schedule | Calloway-Briggs Renewables Inc. | CBR / Priya Narayanan | 2023-10-02 | 2023-10-08 | Complete | Megan Chu | Co-founders (Margaret Calloway, Thomas Briggs) majority; Cascadia Fund III ~22% |
| 1.07 | Corporate | Board resolutions authorizing JV formation and contribution of project portfolio | Calloway-Briggs Renewables Inc. | CBR / Rebecca Whitfield | 2023-10-02 | 2023-11-22 | Complete | Megan Chu | Board approved; resolutions adopted authorizing execution of LLC Agreement and ancillary documents |
| 1.08 | Corporate | Incumbency certificate — officers and directors | Calloway-Briggs Renewables Inc. | CBR / Rebecca Whitfield | 2023-10-02 | 2023-10-09 | Complete | Derek Okonkwo | Key officers: Margaret Calloway (CEO), Thomas Briggs (President), Priya Narayanan (CFO), Daniel Estrada (SVP Corp Dev), Rebecca Whitfield (GC) |
| 1.09 | Corporate | Certificate of Formation / Articles of Organization | Lumen Ridge Infrastructure Partners LLC | Lumen Ridge / Amanda Prescott | 2023-10-02 | 2023-10-09 | Complete | Megan Chu | Delaware LLC; formed 2018; managed by Lumen Ridge Capital Advisors LLC |
| 1.10 | Corporate | Operating Agreement (as amended) | Lumen Ridge Infrastructure Partners LLC | Lumen Ridge / Amanda Prescott | 2023-10-02 | 2023-10-11 | Complete | Megan Chu | Reviewed; no issues impacting JV formation |
| 1.11 | Corporate | Certificate of Good Standing — State of Formation (Delaware) | Lumen Ridge Infrastructure Partners LLC | Lumen Ridge / Amanda Prescott | 2023-10-02 | 2023-10-12 | Complete | Derek Okonkwo | Good standing confirmed with Delaware Secretary of State |
| 1.12 | Corporate | Cascadia Growth Equity Fund III, L.P. — Written consent to JV formation | Cascadia Growth Equity Fund III, L.P. / Owen Charbonneau | CBR / Rebecca Whitfield | 2023-10-02 | 2023-11-20 | Complete | Megan Chu | Consent obtained November 20, 2023, per CBR stockholders' agreement; ~22% equity stake triggers consent right for material transactions |
| 1.13 | Corporate | Organizational chart — CBR and subsidiaries | Calloway-Briggs Renewables Inc. | CBR / Daniel Estrada | 2023-10-02 | 2023-10-08 | Complete | Derek Okonkwo | Includes project-level SPVs for each of the eight solar projects |
| 1.14 | Corporate | Organizational chart — Lumen Ridge and affiliates | Lumen Ridge Infrastructure Partners LLC | Lumen Ridge / Amanda Prescott | 2023-10-02 | 2023-10-10 | Complete | Derek Okonkwo | Includes Lumen Ridge Capital Advisors LLC (manager); ~$4.2B AUM |
| 1.15 | Corporate | Existing material agreements / material contract schedule | Calloway-Briggs Renewables Inc. | CBR / Rebecca Whitfield | 2023-10-02 | 2023-10-15 | Complete | Megan Chu | Reviewed for conflicts with JV formation; no restrictions identified |
| 1.16 | Corporate | Existing material agreements / material contract schedule | Lumen Ridge Infrastructure Partners LLC | Lumen Ridge / Amanda Prescott | 2023-10-02 | 2023-10-16 | Complete | Megan Chu | Reviewed; no impediments to JV formation |
| 1.17 | Corporate | EIN / Tax identification numbers | Both Parties | CBR / Priya Narayanan; Lumen Ridge / Victor Osei | 2023-10-02 | 2023-10-05 | Complete | Derek Okonkwo | CBR EIN: 46-2837451; Lumen Ridge EIN: 83-1924076 |
| 1.18 | Corporate | Lumen Ridge Capital Advisors LLC — Operating Agreement / Management Agreement | Lumen Ridge Capital Advisors LLC | Lumen Ridge / Amanda Prescott | 2023-10-02 | 2023-10-14 | Complete | Megan Chu | Confirmed authority of LRCA to bind Lumen Ridge to JV |
[sheet: 2. Real Property]
| Item # | Category | Description of Request | Project / Site | Location | Acreage | Responsible Party | Date Requested | Date Received | Status | Reviewed By | Notes / Comments |
| 2.01 | Real Property | Ground lease agreement (fully executed) | Red Mesa Solar I | Pecos County, TX | 2400 | CBR / Daniel Estrada | 2023-10-02 | 2023-10-09 | Complete | Derek Okonkwo | 2,400-acre lease; fully permitted |
| 2.02 | Real Property | Title commitment and schedule of exceptions | Red Mesa Solar I | Pecos County, TX | 2400 | Meridian Land Title Company | 2023-10-02 | 2023-10-18 | Complete | Derek Okonkwo | Title commitment reviewed; no material defects; standard utility easements noted |
| 2.03 | Real Property | ALTA/NSPS survey | Red Mesa Solar I | Pecos County, TX | 2400 | Meridian Land Title Company | 2023-10-02 | 2023-10-20 | Complete | Derek Okonkwo | Survey reviewed; boundaries confirmed |
| 2.04 | Real Property | Ground lease agreement (fully executed) | Red Mesa Solar II | Pecos County, TX | 2100 | CBR / Daniel Estrada | 2023-10-02 | 2023-10-09 | Complete | Derek Okonkwo | 2,100-acre lease; fully permitted |
| 2.05 | Real Property | Title commitment and schedule of exceptions | Red Mesa Solar II | Pecos County, TX | 2100 | Meridian Land Title Company | 2023-10-02 | 2023-10-18 | Complete | Derek Okonkwo | No material title defects |
| 2.06 | Real Property | Ground lease agreement (fully executed) + title commitment + survey | Cimarron Flats | Crockett County, TX | 1800 | CBR / Meridian Land Title Company | 2023-10-02 | 2023-10-22 | Complete | Derek Okonkwo | 1,800-acre lease; fully permitted; title clear |
| 2.07 | Real Property | Ground lease agreement (fully executed) + title commitment + survey | Lone Star Prairie | Webb County, TX | 1560 | CBR / Meridian Land Title Company | 2023-10-02 | 2023-10-22 | Complete | Derek Okonkwo | 1,560-acre lease; fully permitted; title clear |
| 2.08 | Real Property | Ground lease agreement (fully executed) + title commitment + survey | Brazos Point | Wharton County, TX | 1440 | CBR / Meridian Land Title Company | 2023-10-02 | 2023-10-22 | Complete | Derek Okonkwo | 1,440-acre lease; permit was pending at signing — received 1/10/2024 |
| 2.09 | Real Property | BLM lease agreement (fully executed) + title commitment + survey | Sangre del Sol I | Doña Ana County, NM | 1800 | CBR / Meridian Land Title Company | 2023-10-02 | 2023-10-25 | Complete | Derek Okonkwo | 1,800-acre BLM lease; fully permitted; federal land lease terms reviewed |
| 2.10 | Real Property | BLM lease agreement (fully executed) + title commitment + survey | Sangre del Sol II | Doña Ana County, NM | 1320 | CBR / Meridian Land Title Company | 2023-10-02 | 2023-10-25 | Complete | Derek Okonkwo | 1,320-acre BLM lease; fully permitted |
| 2.11 | Real Property | Ground lease agreement (fully executed) + title commitment + survey | Sonoran Ridge | Pinal County, AZ | 1920 | CBR / Meridian Land Title Company | 2023-10-02 | 2023-10-25 | Complete | Derek Okonkwo | 1,920-acre private lease; fully permitted; title clear |
| 2.12 | Real Property | Schedule of all encumbrances, easements, and liens across all sites | All Projects | TX, NM, AZ | 14340 | Meridian Land Title Company | 2023-10-02 | 2023-10-28 | Complete | Derek Okonkwo | Consolidated schedule prepared; no material adverse encumbrances identified |
| 2.13 | Real Property | Evidence of mineral rights / severance (where applicable) | All Texas Projects | Pecos, Crockett, Webb, Wharton Counties, TX | CBR / Daniel Estrada | 2023-10-02 | 2023-10-15 | Complete | Derek Okonkwo | Mineral estate severed on certain parcels; surface use agreements in place | |
| 2.14 | Real Property | Property tax assessment records (most recent) | All Projects | TX, NM, AZ | CBR / Priya Narayanan | 2023-10-02 | 2023-10-18 | Complete | Derek Okonkwo | Current on all property tax obligations |
[sheet: 3. Environmental]
| Item # | Category | Description of Request | Project / Site | Location | Responsible Party | Date Requested | Date Received | Status | Reviewed By | Notes / Comments |
| 3.01 | Environmental | Phase I Environmental Site Assessment (ESA) | Red Mesa Solar I | Pecos County, TX | TerraNova Environmental Sciences Inc. / Dr. Sharon Kessler | 2023-10-02 | 2023-10-20 | Complete | Derek Okonkwo | No recognized environmental conditions (RECs) identified |
| 3.02 | Environmental | Phase I ESA | Red Mesa Solar II | Pecos County, TX | TerraNova / Dr. Sharon Kessler | 2023-10-02 | 2023-10-20 | Complete | Derek Okonkwo | No RECs identified |
| 3.03 | Environmental | Phase I ESA | Cimarron Flats | Crockett County, TX | TerraNova / Dr. Sharon Kessler | 2023-10-02 | 2023-10-22 | Complete | Derek Okonkwo | No RECs identified |
| 3.04 | Environmental | Phase I ESA | Lone Star Prairie | Webb County, TX | TerraNova / Dr. Sharon Kessler | 2023-10-02 | 2023-10-22 | Complete | Derek Okonkwo | No RECs identified |
| 3.05 | Environmental | Phase I ESA | Brazos Point | Wharton County, TX | TerraNova / Dr. Sharon Kessler | 2023-10-02 | 2023-10-24 | Complete | Derek Okonkwo | No RECs identified |
| 3.06 | Environmental | Phase I ESA | Sangre del Sol I | Doña Ana County, NM | TerraNova / Dr. Sharon Kessler | 2023-10-02 | 2023-10-24 | Complete | Derek Okonkwo | No RECs identified; NEPA categorical exclusion applicable |
| 3.07 | Environmental | Phase I ESA | Sangre del Sol II | Doña Ana County, NM | TerraNova / Dr. Sharon Kessler | 2023-10-02 | 2023-10-24 | Complete | Derek Okonkwo | No RECs identified |
| 3.08 | Environmental | Phase I ESA | Sonoran Ridge | Pinal County, AZ | TerraNova / Dr. Sharon Kessler | 2023-10-02 | 2023-10-25 | Complete | Derek Okonkwo | No RECs identified |
| 3.09 | Environmental | Phase II ESA (where recommended by Phase I) | All Projects | TX, NM, AZ | TerraNova / Dr. Sharon Kessler | 2023-10-02 | 2023-10-28 | Complete | Derek Okonkwo | Phase II conducted on select parcels; no material conditions found |
| 3.10 | Environmental | NEPA compliance documentation / categorical exclusion letters | All Projects (federal nexus) | TX, NM, AZ | CBR / Daniel Estrada | 2023-10-02 | 2023-10-18 | Complete | Derek Okonkwo | NEPA categorical exclusions confirmed for all applicable projects |
| 3.11 | Environmental | State-level environmental permits and compliance records | All Projects | TX, NM, AZ | CBR / Daniel Estrada | 2023-10-02 | 2023-10-22 | Complete | Derek Okonkwo | All state environmental permits in hand or in process; no material compliance issues |
| 3.12 | Environmental | Endangered species / biological survey reports | All Projects | TX, NM, AZ | TerraNova / Dr. Sharon Kessler | 2023-10-02 | 2023-10-28 | Complete | Derek Okonkwo | No threatened or endangered species issues identified on any site |
[sheet: 4. Permits & Regulatory]
| Item # | Category | Description of Request | Project / Site | Responsible Party | Date Requested | Date Received | Status | Reviewed By | Notes / Comments |
| 4.01 | Permits | Development / construction permit — county and state | Red Mesa Solar I (200 MW DC) | CBR / Daniel Estrada | 2023-10-02 | 2023-10-10 | Complete | Megan Chu | Fully permitted at signing |
| 4.02 | Permits | Development / construction permit — county and state | Red Mesa Solar II (180 MW DC) | CBR / Daniel Estrada | 2023-10-02 | 2023-10-10 | Complete | Megan Chu | Fully permitted at signing |
| 4.03 | Permits | Development / construction permit — county and state | Cimarron Flats (150 MW DC) | CBR / Daniel Estrada | 2023-10-02 | 2023-10-10 | Complete | Megan Chu | Fully permitted at signing |
| 4.04 | Permits | Development / construction permit — county and state | Lone Star Prairie (130 MW DC) | CBR / Daniel Estrada | 2023-10-02 | 2023-10-10 | Complete | Megan Chu | Fully permitted at signing |
| 4.05 | Permits | Development / construction permit — county and state | Brazos Point (120 MW DC) | CBR / Daniel Estrada | 2023-10-02 | 2023-11-22 | Complete | Megan Chu | Permit pending at signing (12/4/2023); received January 10, 2024 — noted as only material open item at signing; closing condition satisfied |
| 4.06 | Permits | Development / construction permit — county and state | Sangre del Sol I (150 MW DC) | CBR / Daniel Estrada | 2023-10-02 | 2023-10-12 | Complete | Megan Chu | Fully permitted at signing |
| 4.07 | Permits | Development / construction permit — county and state | Sangre del Sol II (110 MW DC) | CBR / Daniel Estrada | 2023-10-02 | 2023-10-12 | Complete | Megan Chu | Fully permitted at signing |
| 4.08 | Permits | Development / construction permit — county and state | Sonoran Ridge (160 MW DC) | CBR / Daniel Estrada | 2023-10-02 | 2023-10-12 | Complete | Megan Chu | Fully permitted at signing |
| 4.09 | Permits | Interconnection agreement(s) with utility / grid operator | All Projects (1,200 MW total) | CBR / Daniel Estrada | 2023-10-02 | 2023-10-18 | Complete | Megan Chu | Interconnection agreements reviewed for all eight projects; no material issues |
| 4.10 | Permits | Power Purchase Agreements (PPAs) — executed and pending | All Projects | CBR / Daniel Estrada | 2023-10-02 | 2023-10-20 | Complete | Megan Chu | PPAs reviewed; negotiated sales, not regulated retail sales — no state PUC approval required |
| 4.11 | Regulatory | FERC / PURPA qualification documentation | All Projects | CBR / Rebecca Whitfield | 2023-10-02 | 2023-10-14 | Complete | Megan Chu | All projects are qualifying facilities exempt from certain FERC requirements under PURPA; no FERC approval required |
| 4.12 | Regulatory | Hart-Scott-Rodino (HSR) filing and clearance | Transaction-level | Calderwood & Harkness LLP / Derek Okonkwo | 2023-10-02 | 2023-11-08 | Complete | Megan Chu | HSR filing submitted October 18, 2023 (Transaction No. 20231018-CBR-LRI); FTC granted early termination November 8, 2023 (21-day turnaround) |
| 4.13 | Regulatory | State PUC / utility commission approvals analysis | All Projects | Calderwood & Harkness LLP / Megan Chu | 2023-10-02 | 2023-10-14 | Complete | Megan Chu | Not required — projects sell output under negotiated PPAs, not regulated retail sales |
| 4.14 | Regulatory | CFIUS analysis | Transaction-level | Calderwood & Harkness LLP / Megan Chu | 2023-10-02 | 2023-10-08 | Complete | Megan Chu | Not applicable — no foreign person involved in the transaction |
| 4.15 | Permits | Zoning and land use approvals | All Projects | CBR / Daniel Estrada | 2023-10-02 | 2023-10-18 | Complete | Derek Okonkwo | Zoning consistent with solar development use at all sites |
| 4.16 | Permits | Water rights / water use permits (where applicable) | All Projects | CBR / Daniel Estrada | 2023-10-02 | 2023-10-20 | Complete | Derek Okonkwo | Minimal water requirements for solar; permits confirmed where needed |