In October 2000, Energy Spectrum invested in Falcon Gas Storage (“Falcon”). Falcon developed, owned, and operated high deliverability, multi-cycle (“HDMC”) gas storage facilities. Falcon’s experienced team had previous success in developing gas storage projects. During Energy Spectrum’s investment period, Falcon upgraded its Texas Hill-Lake facility to HDMC capability. In July 2005, Energy Spectrum sold its interest in Falcon as part of a recapitalization of the Company.