The US Department of Energy (DOE) has asked Gustavson Associates, Inc. to serve as an Independent Petroleum Consultant under contract DE-AC01-96FE64202. This authorizes a study and recommendations regarding future development of Naval Petroleum Reserve No. 2 (NPR-2) in Kern County, California. The report that follows is the Phase II Final Report for that study. Additional details are provided in the Addendum (the Phase I Property Description and Fact Finding Report). The key property elements that positively affect the estimated value of NPR-2 include the following: royalty income from producing oil and gas leases, rental income from non-producing oil and gas leases, income from grazing or leasing of grazing rights, potential income from oil and gas leasing on exploratory (or nonprospective) acreage, potential value of trading surface real estate as ranch land for sheep grazing (10,044 acres), and town lots for residential or commercial development (16.7 acres). Key elements that negatively impact the estimated value include: environmental assessment costs, operating budgets, and lease sale expenses.