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HomeMy WebLinkAboutGeothermal Demonstration Program Pilgrim Hot Springs AK 1979Alaska Power Authorit. LIBRARY COPY GEOTHERMAL DEMONSTRATION PROGRAM PILGRIM HOT SPRINGS, AK. Al A STATE OF ALASKA GEOTHERMAL DEMONSTRATION PROJECT PILGRIM Hot SPRINGS, ALASKA Dye of Comm . q Coon Yow. Du. oh Energy 4 Power” du Agere 1977 HISTORY Prior To 1900 - KRUZGAMEPA 1900 - Lope 1907 - PATENT 1908 - LoDGE DESTROYED LopGeE REBUILT 1$17 - EPIDEMIC 1919 - ORPHANAGE 1942 - Enp oF CHURCH ERA 1969 - PILGRIM SPRINGS, LTD. 1972 - Acaska {lative CLAIMS SETTLEMENT ACT 1978 - APPROPRIATION North of Nome, 50 miles (80 km) flows the Pilgrim River. Along one of the old abandoned meander bends lies a derelict facility known today as Pilgrim. This is the site, at the turn of the century, of a rich cul- tural heritage which blossomed at this oasis of the north. The Indian name for the hot springs there is Kruzgamaepa. Legend de- tails the curative properties of the springs. One such traces the path of nomadic Natives. In the tradition of the Eskimo people, an old arthritic woman left the group to die at Kruzgamepa. The next spring on the band's return to the coast, they found the old woman alive and well at the springs. Somewhat shocked, they noticed that she was not only alive, but dramatically cured from the crippling arthritis (related by Pete Walsh, Nome, Alaska). About the turn of the century, the gold stampede brought the white man to the Seward Peninsula. A roadhouse of some i1] repute sprang up at Kruzgamepa as a recreational haven for the weary miners. A lucrative agricultural business thrived during this period. In 1908, Henry Backus capitalized on his gold mine by obtaining one of the first Alaskan homestead patents. The same year the bordello/bath- house burned and was rebuilt in the grand style of the gold rush era. The roadhouse changed hands and eventually was transferred to the Catho- lic Church during the First World War. From 1917-1919, a world wide influenza epidemic was running rampant. Twenty-two million people died in those two years. In its wake, 107 orphans were left in the Nome area. In 1919, the Catholic Church, under direction of Father Fredrick Ruppert, built an orphanage to house the homeless children. The area became known as Pilgrim and a community of some substance de- veloped. The children produced most of the fresh vegetables for the Nome-Teller area. They used both railroads and barges to transport their wares to market -- that is wilh some twists. Dogs pulled the homemade rail cars along the abandoned gold mine railroad in the vicinity. Eventually, the children grew up and the orphanage was closed in 1942. The area remained a recreational mecca for the Seward Peninsula, but gradually the Pilgrim area fell into disrepair. In 1968, a group of Nome entrepeneurs purchased a 99 year lease from the church. Much planning and effort has gone into the springs area since then, however major statewide issues, such as the Alaska Native Claims Settle Act (ANCSA) and State land selections hampered the persistent efforts of the Pilgrim Springs group to develop the area. During this time, Mary's Igloo Village Corporation became aware of the potential of the springs area and selected considerable acreage around the Backus homestead under ANCSA. In 1978, the efforts of Pilgrim Springs finally paid off. The State of Alaska appropriated $245,000 to construct a demonstration project at Pilgrim. JUNE 1978 JULY 1978 AUGUST 1978 OCTOBER 1978 DECEMBER 1978 HISTORY APPROPRIATION GOVERNOR'S APPROVAL DRAFT PLAN TECHNICAL REVIEW DECISION FOR MEETING Since the efforts of Rep. Schaeffer and Senators Ferguson and Kertulla produced the appropriation last June, numerous events have taken place. In July of 1978, Governor Hammond signed into law the capital budget for the State that set aside $245,000 to the State Division of Energy and Power Development for the Pilgrim Project. The philosophy behind the funding was to define the resource and its potential. This potential might manifest itself as electrical pro- duction for the Seward: Peninsula or direct heat use to initiate agri- cultural development ‘in Northwest Alaska. Once defined, the State would use the site to demonstrate and educate the citizens of Alaska con- cerning geothermal energy potential. The Division in conjunction with Dr. Bob Forbes from the University of Alaska's Geophysical Institute, put together a development plan for the project during the fall of 1978. This plan was sent out for technical review. Enough input was received to warrant a critique of the develop- ment plan. Bill Ogle and his collegues, Patricia Kirkwood and John Beebee of Energy Systems, Inc. are local geothermal experts. They offered to co-host an interdisciplinary meeting in January of 1979. WHO: WHAT : WHERE : WHEN : WHY : GEOTHERMAL INTERDISCIPLINARY MEETING Britt OcLe, Enercy Systems, Inc. CLARISSA QUINLAN, DEPD "MEETING OF TECHNICAL EXPERTS UNIVERSITY OF ALASKA, ANCHORAGE January 25, 1979 Critique STATE PLAN On January 25th and 26th, Energy Systems, Inc. and the Division of Energy and Power Development hosted a meeting at the University of Alaska in Anchorage. The meeting was intended to critique the State of Alaska Demonstration Plan, as well as add new dimensions to the Plan. The following people attended the meeting: Richard Atuk, Bering Straits Corporation Neil Basset, Bureau of Land Management John Beebee, Energy Systems, Inc. Bob Clark, U.S. Department of Energy Gene Culver, Oregon Institute of Technology Don Dinkel, University of Alaska, Agricultural Extension Service Bob Forbes, Geophysical Institute, Unversity of Alaska Dan Hawkins, State Geological Survey Patricia Kirkwood, Energy Systems, Inc. Jay Kunze, Consultant, State of Alaska Lee Leonard, Geophysical Institute, University of Alaska Bill Long, State Geological Survey Don Markle, Division of Energy and Power Development Tom Miller, U.S. Geological Survey C.J. Phillips, Nome, Alaska, , Pilgrim Springs, Ltd. Clarissa Quinlan, Division of Energy and Power Development Bob Sanders, State Division of -Minerals Ross Schaff, State Geological Survey Charles Sloan, U.S. Geological Survey Mort Smith, Los Alamos Scientific Lab Bill Ogle, Energy Systems, Inc. Don Turner, Geophysical Institute, University of Alaska Gene Wescott, Geophysical Institute, University of Alaska Key points that came out of the meeting were: 1. There was a critique of Bob Forbes' exploration plan. General agreement was reached that the approach was proper. The Geophy- sical Institute agreed to submit an exploration plan to the Division of Energy and Power Development (DEPD). The Geophysical Institute also agreed to commit $35,000 worth of Federal Department of Energy resource assessment money to the Pilgrim Project. This resource assessment money is being administered by the Institute. 2. It was generally agreed that the money remaining after exploration and reservation for a possible drilling project left about $75,000 for a demonstration. The only avenues that appeared open to the State for demonstration at this price were some form of aquaculture, agricultural or space heating demonstration of direct heat geo- thermal technology. It was pointed out that the Bureau of Indian Affairs had committed money at the springs site for agriculture this coming year. The general concensus was to pursue information gathering at this time for numerous options and wait for the results of the exploration and drilling programs. The drilling program decisions would need input from the geophysical exploration plan. 3. A lot of discussion revolved around getting permits and approvals for the various programs. DEPD was to puruse these post-haste. 4. Other funding sources were discussed. Lee Leonard of the University of Alaska explained that they had been funded $40,000 to do economic studies in Alaska by the Department of Energy. . He could commit some of this money to the Pilgrim project. It was also revealed that NORTEC, a local engineering firm, has applied for $125,000 to study legal, institutional, economic and engineering studies at Pilgrim. A decision should be made by April as to whether they will receive this money. Oregon Institute of Technology will be able to apply some time and per- sonnel under the Federal Department of Energy Technical Assistance Pro- gram to the Pilgrim project. FUNDING FY 79 APPROPRIATION TO DEPD $245.9 DOE GEOTHERMAL Resource AssessmMENT PRoGRAM 35.9 “DOE ALASKA GEOTHERMAL PLANNING GRANT 20.0 ENERGY Systems, INc, 5,0 BIA AGRICULTURAL DEMONSTRATION 22.5 $327.5 PILGRIM DEVELOPMENT PLA‘I 1979 1980 1981 4 Money APPROPRIATED JOE Money MATCHING FUNDS JORTEC Economic StTupy EXPLORATION PLANNING EXPLORATION DRILLING PLANNING DRILLING PROJECT JECISION ON DRILLING PROJECT A 2LANNING FOR DEMONSTRATION SS DECISION ON PROJECT IA DEMONSTRATION PROJECT A —_}—4 EXPLORATION PLAN WHO: Division oF ENERGY & PoweR DEVELOPMENT GEOPHYSICAL INSTITUTE STATE GEOLOGIST WHAT: GEOPHYSICAL PROGRAM WHEN: Summer, 1979 WHY: TarGeT WELL DEFINE RESOURCE The Geophysical Institute, University of Alaska proposes to conduct a geological and geophysical survey of the Pilgrim Springs area, prior to the drilling of any exploratory geothermal test hole. This survey is to include seismic profiling, resistivity studies, a thermal grid and hydrologic survey and site geology including bedrock and surficial mapping. The geological and geophysical survey program is designed to attempt to provide the following technical information: 1. Subsurface geologic sections which define the geometry of the basement and the overlying sedimentary cover, and additional data on the physical characteristic of the sedimentary units (seismic velocities, resistivities). 2. The most likely location and geometry of the conduit system or systems which feed the springs, and the acquifers which distribute and store the thermal spring water. 3. An assessment of the hydrology of the shallow channel sands which appear to act as the hot water reservoir as evidenced by the heated ground adjacent to the springs (dependent on the participa- tion of the State Geological and Geophysical Survey). 4. A better understanding of the surficial geology of the Pilgrim Valley, and the bedrock geology of the valley sides, to assess the potential of sedimentary and bedrock acquifers and the possible role of faulting and young granites in the development of the Pilgrim hydrothermal system. 5. The identification of possible subsurface targets for deep drilling. The Institute proposes to conduct this program in summer 1979, through a cooperative funding agreement with the Division of Energy and Power Development, which would include a $35,000 committment of Institute- assigned DOE funds, and a counterpart sum to be supplied by the State of Alaska. The proposed cost sharing by the Geophysical Institute is contin- gent upon funding of our Geothermal Resource Definition Program by DOE. The proposal for this project has been approved for funding and is now in the contracting process. A statement of intent to fund the program has been received from DOE. The State Geological Survey and, possibly, the United States Geo- logical Survey, will participate in this program. Gravity, magnetic, chemical and soil measurements and sampling will be included in the exploration plan contingent upon these organizations becoming involved and budget considerations. This program will take place the summer of 1979 at the Pilgrim site. The exploration phase will provide necessary information to determine the siting and extent of any drilling activities. DRILLING PLAN WHO: DIVISION OF ENERGY & PoweR DEVELOPMENT WHAT: 5-10 SHALLOW ELLs 1 Deep WELL WHEN: FaLL, 1979 WHY: DEFINE RESOURCE GEOTHERMAL PRODUCTION The drilling plan will not be finalized until the geophysical explora- tion has been completed. The general concensus was that some sort of well drilling would be necessary to evaluate the resource properly. There are two main technical considerations for the drilling program: 1. The need for "blow-out" preventers. 2. The ability to maintain hole integrity, yet not damage the pro- ducing formation with heavy muds. Two general philosophies are being considered at this time. One is to drill a series of 5-10-100 foot test wells and one 500-1,000 foot test/ production well. Another concept is to drill three 500 foot plus holes using them for production and exploration. Drilling Considerations A) Type of Drill Rig 1. Cable Tool a) b) 2. Small Rotary a) Advantages Disadvantages Preferred for surface a) None known to be on casing in loosely con- Seward Peninsula at solidated sediments, present. heavily saturated. Reduces risks of hole b) Cannot contain a free collapse or poor grouting flowing well condi- job tion. (Especially dangerous if hot water) Available at Nome* a) Depth limit about 600 ft. (suspect this means 30,000 1b. hoist limit) B) Casing 1. Conductor Pipe 14" regular or 13 3/8" threaded 2. Surface Casing 10 3/4" threaded 3. Production Casing * It has been assumed Set deep enough and cement to provide firm anchor. If regular casing is used, welding capability must be available at the site. If needed according to State requirements for drilling permit, or expected difficulty in maintaining hole integrity. Otherwise go directly to production casing. Have available some 8 5/8", some 6 5/8", and some 5" for use a stepped casing strings, ex- pecting problem with hole collapse. Need ap- propriate casing hangers. that the rigs at Nome have "mad pumps" (fluid circulating pumps), and operate with fluid circulating down the drill pipe drill pipe and hole. and returning in the annulus between the Cc) D) E) Liners Because of the expense of screen, plan on slotting casing in the field at the appropriate depths where production zones exist. Blow-out Protection A master gate valve on the conductor pipe would stay there if the well were successful. Would recommend that at least a pipe ram- be rented for mounting on top of the gate valve. This may require elevating the drill rig and building a working platform. If the 140°C temperatures are considered likely during the drilling (need to await the winter sampling and the geophysics), then a full blow-out string would be needed, probably making it impossible to use the small rigs. I then would recommend very careful drilling, and stopping before getting into the fluid exceeding boiling temper- atures. This would allow the use of a small rig, with reduced costs to explore for moderate temperature waters for a direct heat demon- stration project. Deviation of Hole Because this hole will likely be drilled into a fault, hole deviation could become. intolerable, making it impossible to run casing or caus- ing drill pipe to rub against sidewalls too much. A deviation tool and the necessary non-magnetic section of drill pipe should be rented, and periodically used. Hole deviation can be somewhat controlled by the amount of weight on the drill string. DEMONSTRATION PLAN WHO: DIVISION OF ENERGY & PowER DEVELOPMENT BuREAU OF INDIAN AFFAIRS PILGRIM SPRINGS, LIMITED WHAT: Direct HEAT DEMONSTRATION WHEN: Summer, 1980 WHY: EDUCATION STIMULATION The final decision as to what path will be taken on the demonstration project will await final results of the exploration and drilling program. The results of possible economic studies being pursued by the University of Alaska and NORTEC will certainly influence the decision as to what type of demonstration is most beneficial. Additional funding would also have substantial impact on both magnitude and areas of demonstration. It is not the intention of the State Division of Energy and Power Devel- opment to begin an ongoing government sponsored agricultural experiment. Rather, it is our aim to demonstrate and evaluate, for educational purposes, various practical geothermal energy applications. It is also the intention of the State to stimulate the private sector to consider geothermal energy where appropriate. It is also hoped that this demon- stration will spur planned, environmentally sound development of the Pilgrim area, that will benefit the people of the Seward Peninsula and, ultimately, the State of Alaska. IX. UTILIZATION The production of electricity is unlikely to be economically or technically practical within the scope of the present project ($245,000 plus some federal matching funds). Therefore, for an impressive demonstration, an industrial heat application involving low labor-intensity, low shipping weight, low capital investment industrial operation is desirable. The obvious candidates to satisfy such conditions are: 1, Greenhouses, primarily for vegetables. 2. Food processing of the products raised at Pilgrim Hot Springs, for shipment to towns in Seward Peninsula. 3. Fish-culture (aqua culture) that benefits from warm waters. Auxiliary production of electricity for use within the "industrial complex" is also outside the scope of the present budget, but may well prove to be more economical, in life cycle costs, than diesel generation. A minimum captive electric load of 30 to 50 kw is antici- pated. Either the Ormat or the Barber-Nichols machines would be candidates. Lithium-bromide absorption refrigeration/freezing is also a possibility for future consideration, when the budget allows. Greenhouses is considered as the prime demonstration project, because of the relatively low capital cost and the fact that geothermal energy for a greenhouse operation is economical with even the present spring water temperature, and most certainly with the 80%C that is almost certain to come from application much more have the image of a true geothermal energy application much more so than fish culture, or soil warming for outside plant growth. Experiences in the lower-48 shows that each one of these modules of 3600 sq. ft. will net (not including labor and marketing cost or capital investment amortization) $10,000 to $20,000, depending on the local market, for tomatoes, lettuce, or cucumbers. (I would estimate at least twice this amount in Alaska.) The capital invesment for one of these units is about $22,000 in the Le and I estimate $35,000 for the cost of a unit on the Seward eninsula. . Thus, 3 or 4 of these units could comfortably support a one family operation. Labor requirements are about 4 man-hours per greenhouse per day, plus marketing efforts. The geothermal water requirements for a single greenhouse will be 15 to 30 gallons per minute, so any reasonably successful well should support at least a dozen greenhouses. \ Because of the lack of winter sunshine, it would probably be prudent not to operate the greenhouses during most of December and January, and begin raising a new seedling crop at the time. A fish culutre project could be an ancillary to the greenhouse oper- ation. However, the high dissolved solids content predicted for the pure spring water (15,000 ppm) would preclude using it directly un- less it were highly diluted. Indirect (heat exchanger) heating of the water might need to be considered. Food processing, even a minimal small pilot size, using some of the present buildings after being refurbished, should be considered. This activity might serve primarily as a small employment and train- ing effort for the local natives, and thus might be the justification for a state appropriation leading to the development of an industrial complex. There are numerous options open for eventual commercial development in the Pilgrim Springs area. Developers on the Seward Peninsula may want to throw their lot with a stable - renewable energy source such as geo- thermal, and locate at Pilgrim. : ; One agricultural option has been explored already and that is greenhouses. Other geothermal enhancement for agriculture could include animal husbandry for the emerging reindeer and red meat industries. Chicken farm and ex- otic animal and plant enterprises are also possible. Heat for agriculture and meat processing could be supplied by the geo- thermal waters. A canning plant for aquaculture and agriculture products can be envisioned. Refrigeration can be accommodated by using the hot water with heat pumps, drying as well. A whole suite of avenues opens up if the market potential is available and economics are favorable. . Hot water has been proven for use in Salmon enhancement projects in Alaska. With declining salmon counts in the vicinity, this is another avenue that will be pursued in evaluating the potential of Pilgrim. More exotoc but possible are geothermal electrical and mineral extraction applications. Both of these require a high quality resource that to date has not been proven at Pilgrim. The demand for electrical and mineral process heat will continue to increase on the Seward Peninsula - especially if the Lost River Mining District reopens. The future of the spring commercialization lies in the private section. The natural leaders in this development would be the landlords in the area; Pilgrim Springs Ltd., Mary's Igloo Village Corporation, and Bering Straits Regional Corporation. : Lost River Mining District and the City of Nome have expressed interest in the springs if there is an electrical potential. Participation by these people will depend on the results of the exploration effort. The Northwest Reindeer Herders Association is another logical end user for heat and refrigeration. It is hoped that meat processing and some spin-off industries could develop around the spring. All these possibilities exist and many more geothermal technologies have been proven world wide. Now is the time for private industry to begin their Planning for use of the Pilgrim resource. The eventual success of State demonstration project will be the legacy left behind when it ends.