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In December 1997, the California Energy Commission (CEC) agreed to provide funding for Phase III continued drilling of the Long Valley Exploratory Well (LVEW) near Mammoth Lakes, CA, from its present depth. The CEC contribution of $1 million completes a funding package of $2 million from a variety of sources, which will allow the well to be cored continuously to a depth of between 11,500 and 12,500 feet. The core recovered from Phase III will be crucial to understanding the origin and history of the hydrothermal systems responsible for the filling of fractures in the basement rock. The borehole may penetrate the metamorphic roof of the large magmatic complex that has fed the volcanism responsible for the caldera and subsequent activity.